KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

NEPSE Index Drops by 0.93 Points

The Nepal Stock Exchange (NEPSE) saw a minimal decline on Thursday, with the index dropping by 0.93 points. Total share transactions for the day amounted to Rs 4.69 billion. The market was split, as the share prices of 138 companies fell, while 112 companies saw gains, and 6 companies remained unchanged. Dhaulagiri Laghubitta saw the highest profit for its sellers, while Bunga Hydropower sellers incurred the biggest loss. Despite the overall dip, several sub-indices, including Hotels & Tourism, Hydropower, and Microfinance, showed positive movement, indicating strength in select sectors.

NRB Records Rs 91 Billion in Capital Gains

The Nepal Rastra Bank (NRB) recorded a substantial capital gain of Rs 91 billion in the fiscal year 2024/25. This profit was primarily driven by the appreciation in the value of gold and the US dollar. The central bank earned Rs 46.88 billion solely from the increase in gold prices and an additional Rs 45.02 billion from the appreciation of foreign exchange reserves. As of the end of the last fiscal year, NRB holds 9,234.19 kg of gold, 120,037.90 kg of silver, and USD 24.14 billion in total foreign reserves, reflecting strategic management amid global market fluctuations. The significant gain reflects the central bank’s successful strategic reserve management in a volatile global market.

SEBON Urges Ministry to Review Benefit Cuts

The Securities Board of Nepal (SEBON) has submitted 3-point recommendations to the Ministry of Finance (MoF) to address the demands of its protesting employees. The primary recommendation asks the MoF to review its directive from August 18 that ordered a reduction and recovery of employee service benefits. SEBON also advised scrapping the current employee work procedure and integrating its contents into the rules to enhance efficiency. The board’s third point emphasizes improving existing legal provisions to maintain SEBON’s institutional autonomy. Although employees returned to work after an agreement, the demands remain unfulfilled, leading them to continue their one-hour daily protest. This action is intended to resolve the long-standing dispute and restore stability within the regulatory body.

ADB Support Sought for Trolley Bus Feasibility

Minister Kulman Ghising requested ADB support for feasibility studies to operate electric trolleybuses on Kathmandu’s ring road and expanding highways, including Kathmandu–Dhulikhel, Pokhara–Mugling, Butwal–Narayan Ghat, and Butwal–Bhairahawa. The initiative aims to use 250 electric vehicles for sustainable public transport, increasing domestic electricity use. The project’s estimated cost is USD 16 million (Rs 2.256 billion), with a USD 10 million concessional ADB loan and USD 4 million in zero-interest financing. Local authorities will implement the project through infrastructure banks and municipal coordination. Feasibility studies are underway to revive and modernize the historic trolleybus system, inactive since 2009-10.

Finance Ministry Prioritizes Technical Bids

The Ministry of Finance announced a preference for technically competent contractors rather than merely low-cost bids for infrastructure projects. Dhaniram Sharma, chief secretary of International Economic Relations, highlighted that projects historically taking 15 years could be completed in 5 years with capable contractors. Foreign loans will now be issued in the currency of the loan or Nepali rupees, not only in US dollars. Treasury and public procurement reforms include cutting 323 positions across 38 agencies, online customs valuation, and strengthening efficient, technology-driven administration to promote good governance and cost-effective project execution.

Loan Demand Stalls Despite Low 7 Percent Rate

Commercial bank base rates have fallen to around 7 percent, yet loan demand remains subdued. Average lending rates declined by 1.83 percentage points in a year, from 9.33 percent to 7.5 percent, because of excess liquidity. Deposit rates have also dropped to 5.04 percent. Industrialists, discouraged by previous high rates, economic slowdown, and the impact of the Gen Z protest, are reluctant to borrow. Experts argue that reducing interest rates alone cannot stimulate borrowing because banks face capital constraints and rising nonperforming loans.

Rs 36.68 Billion FDI Committed in Q1

By November 16, Nepal approved Rs 36.68 billion in foreign direct investment (FDI) across 382 projects in 8 sectors. The largest capital inflow came in agriculture and forest-based industries with Rs 21.88 billion for 13 projects. Tourism attracted Rs 8.94 billion for 118 projects, services Rs 3.09 billion for 23 projects, and ICT had 205 projects but only Rs 87.43 million investment. In Kartik alone, Rs 154.39 million FDI was registered across 71 industries.

Investment Board Clears 4 Major Hydropower Projects

The Investment Board approved the 439 MW Baten Karnali reservoir project with an estimated cost of Rs 9.34 billion. The Board also approved the 669 MW Lower Arun, 900 MW Arun-3, and 800 MW West Seti projects, authorizing necessary permits and drafting agreements. The Baten Karnali project will involve employee contributions. The Board reviewed the fiscal year 2024/25 progress and approved the annual plan for the fiscal year 2025/26. An Rs 16 billion Auto Service Eco-Industrial Park project will proceed with detailed project reports and survey permits. 4 key officials, including PM Sushila Karki, Finance Minister Rameshore Prasad Khanal, and Energy Minister Kulman Ghising, participated.

National Cooperative Bank Faces Financial Crisis

The Nepal Rastra Bank flagged governance failures at National Cooperative Bank, noting misuse of deposits and politically influenced lending. The bank’s total capital adequacy is 0.82%, well below the 8% requirement, with primary capital at 0.34%. Losses for the fiscal year 2024/25 are Rs 4.25 billion. Non-performing loans are high, and the central bank plans detailed corrective instructions. Mismanagement under politically affiliated leadership contributed to financial instability, requiring urgent reforms to restore solvency and proper governance.

Karnali Province Plans Hydropower Co-Investment Policy

Karnali Province announced a co-investment policy for provincial, local, and private sectors to develop hydropower projects. Twenty projects up to 20 MW will be selected for feasibility studies, with Rs 5 million allocated for the studies. The government will prioritize rural small hydropower identification, repair, and development. Previously, the province committed Rs 410.49 million in shares for the 106 MW Gadulla reservoir project on January 3, 2025. Local and private investment has been discouraged by limited support for infrastructure and study permissions. The province plans an investment conference to attract large-scale hydropower projects under co-investment schemes.

US Bangla Compensation Case Reaches Patan High Court

The Patan High Court scheduled hearings for US Bangla Airlines’ appeal against compensation rulings for 17 families of victims in the March 12, 2018, Kathmandu plane crash. District Court rulings awarded payouts ranging from USD 44,290 to USD 277,548 per victim, including MBBS students, doctors, and nurses, based on age and professional background. The case was filed in 2019 under the Warsaw Convention 1929 framework.

KMC Spends Only 12.94% of Budget in Q1

Kathmandu Metropolitan City spent Rs 3.25 billion from an allocated Rs 25.11 billion in the first quarter of the fiscal year 2025/26, including Rs 2.13 billion for recurrent and Rs 1.11 billion for capital projects. Ward-wise, Ward 19 spent the most at 19.41%, while Ward 11 spent the least at 0.38%. Compared to the fiscal years 2023/24 and 2024/25, expenditure remained consistent around 12–13%.

Toxic Pesticide Found in Kalimati Produce

Testing by the Central Agriculture Laboratory revealed hazardous pesticide levels in Kalimati Vegetable Market produce. Coriander from Bhaktapur contained 55.29% organophosphate, and cucumber from Nawalparasi had 46.5%, exceeding safe consumption limits. Vegetables exceeding 45% pesticide levels are deemed unsafe. Similar high pesticide detections were reported twice in the recent months for pumpkin, cucumber, and chili. Authorities warned against consumption of contaminated produce, emphasizing consumer safety.

Food Company Exceeds Rice Quota in Kailali

Food and Trade Company Limited purchased 37,055.91 quintals of rice in Kailali, exceeding the first-phase quota of 35,000 quintals starting September 26. Over-purchase occurred when farmers delivered more than their coupon allotment. The company temporarily halted purchases, pending the second-phase quota. Farmers unable to sell rice were forced to sell cheaply to traders, raising livelihood concerns. Officials stated preparations for the second-phase quota are ongoing but uncertain. The initial phase concluded successfully, with rice acquisition centers operating efficiently, but supply-demand mismatch caused temporary disruptions affecting farmers’ incomes and local agricultural stability.

DDC Biratnagar Faces Closure Over Unpaid Dues

The government-owned Dairy Development Corporation’s DDC Biratnagar Distribution Project is facing a severe financial crisis as farmers stop supplying milk over unpaid dues. Three chilling centers in Ilam have already shut down, including Lakshmipur, which alone collected 1,400 liters daily. Average collection from Puwakhola and Fikkal, each supplying 1,000 liters, has halted. Seven of 11 chilling centers remain operational. Farmers have not been paid since April 28, 2024, leaving dues at Rs 180 million. Daily milk collection has fallen from 200,000 liters before COVID to just 12,000 to 13,000 liters now.

Nepal Bank Launches ATM in Remote Dolpa

Nepal Bank Limited has launched ATM services at its remote Dunai branch to mark the bank’s 89th anniversary. Karnali Province Chief Dinesh Prasad Paudel inaugurated the service and emphasized equal digital access for residents of Dolpa and Kathmandu. The Dunai branch has served the region since 1975. Local representatives welcomed the upgrade and requested easier access to collateral-based loans. The bank has started issuing ATM cards to customers in the area.

Nepalgunj Exports Over 5.5 Million Kg of Herbs

Nepalgunj border exported 5,563,770 kg of herbs in the fiscal year 2024/25, up from 4,649,929 kg in the fiscal year 2023/24, according to the Nepal Herb Business Association. Major exports included 1,898,194 kg of Chutro, 1,464,380 kg of Ritha, 577,867 kg of Timur, 224,997 kg of Tejpat, 330,441 kg of Pashanbhed, 166,017 kg of Padmachal, 126,665 kg of Kaulo pods, and 128,277 kg of Chutro pods. 44 herb types were exported, including 42,750 kg of Jatamasi to Dubai and Pakistan. Export growth has boosted income for farmers, collectors, and traders in western Nepal.

Labor Shortage Disrupts Rice Harvest in Morang

Rice farmers in southern Morang municipalities (Ratuwamai, Sunbarshi, Rangeli, Kanepokhari, Dhanpalthan, Jahada, and Katahari) face labor shortages due to semi-mechanization. Migrant laborers from local tribal communities have gone to India, Qatar, and Malaysia, leaving fields unharvested. Farmers rely on harvesters charging Rs 7,000 per hour, but limited machines delay harvesting 8–10 days for entire villages. Manual labor gaps hinder straw collection and livestock feeding. The combination of mechanized plowing and inadequate transplanting technology has compounded agricultural challenges. Farmers struggle to coordinate harvests efficiently, with small machines insufficient to meet local demands.

Ashok Steel Makes Second Payment to NEA

Ashok Steel Industries, Simara, Bara, paid Rs 6.3 million as the second installment for dedicated feeder and trunk line usage. The company previously paid Rs 6.3 million for the first installment, leaving Rs 170.58 million outstanding. The Nepal Electricity Authority (NEA) had previously cut power for 25 industries on October 21 and 24 due to unpaid dues. Across 35 industries, NEA recovered Rs 230.87 million from a total outstanding of around Rs 5 billion, with most industries having cleared at least the first installment.

Gold Price Jumps Rs 700 Per Tola

The price of hallmark gold has increased by Rs 700 per tola in the domestic market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold is now trading at Rs 243,000 per tola, up from the Rs 242,300 price recorded on Wednesday. The price of silver also saw an increase of Rs 35 today. The federation stated that silver is currently trading higher than the previous day’s price of Rs 3,150 per tola on Wednesday. These daily fluctuations underscore the continued volatility in the domestic bullion market. The significant daily increase places the gold price at a high level for consumers and investors.