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:

Over Rs 40 Billion Held in 10 Government Funds for Employee Benefits and Services:
A government report reveals that 10 funds under the Ministry of Finance hold over Rs 40 billion, earmarked for employee retirement benefits, medical treatment, allowances, and other services. Both government contributions and employee deductions are regularly deposited into these funds. The National Commercial Bank holds the largest balance at Rs 25.71 billion, followed by Agricultural Development Bank with Rs 12.20 billion. Other institutions include Nepal Airlines (Rs 61 million), Public Service Broadcasting Nepal (Rs 42 million), Deposit and Credit Security Fund (Rs 38 million), Medicinal Herbs & Processing Company Limited (Rs 7 million), and Kathmandu Valley Water Supply Board (Rs 3 million). These funds ensure financial security and welfare for government employees.

NEPSE Gains 14.56 Points as Macroeconomic Indicators Improve; Hotels & Tourism Lead Weekly Surge:
The Nepal Stock Exchange (NEPSE) rose by 14.56 points (0.57%) last week, supported by improved macroeconomic indicators highlighted in Nepal Rastra Bank’s latest report. The index opened at 2,545.73 and closed at 2,560.29, reaching a weekly high of 2,580.09 and a low of 2,533.03. Hotels and tourism led with a 4.89% gain, while finance, non-life insurance, and banking declined. Sahas Urja topped turnover at Rs 1.16 billion. Sagar Distillery and Bandipur Cable Car shares surged 61%, while Bhugol Energy fell 20.80%. Total turnover reached Rs 20.41 billion, and market capitalization increased by Rs 25 billion to Rs 4.298 trillion.

Rs 24.5 Billion Petroleum Pipeline Projects Enter Implementation Phase in Nepal:
Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) have moved forward with two major petroleum pipeline projects and storage facilities, involving a total investment of Rs 24.5 billion. The Siliguri–Jhapa pipeline will cover 50 km, with storage capacity of 18,900 kiloliters in Jhapa, while the Amlekhgunj–Chitwan pipeline and Lothar terminal in Chitwan will store 91,900 kiloliters of fuel. India provides Rs 15 billion in grants, and NOC invests Rs 9.5 billion. The projects aim to improve fuel supply in eastern Nepal, reduce transport costs, prevent spillage, and enhance petroleum distribution efficiency. Implementation is underway after land acquisition and design finalization.

Political Instability and Post-Protest Disruptions Push Nepal’s Banking Sector Deeper into Non-Performing Loan Crisis:
Nepal’s banking sector faces rising non-performing loans (NPLs) following political instability and the recent Janajati (JeenJi) protests. Businesses, citing protests, market shutdowns, flood damage, and land-sale disruptions, have stopped paying interest, even those previously regular. The overall NPL rate has climbed to 5.06% from 4.37% last year, exceeding Nepal Rastra Bank’s 5% risk threshold. Contributing factors include economic slowdown, mergers, real estate sector risks, and weak credit monitoring. Banks are responding with loan restructuring, strengthened recovery campaigns, AI-based risk monitoring, and policy focus on stable, secured loans. NRB emphasizes inclusive credit access for agriculture and SMEs to mitigate systemic risks.

Gold Price Drops Rs 8,000 per Tola Amid Stronger Dollar and Rising Treasury Yields:
The domestic gold price fell by Rs 8,000 per tola last week, closing at Rs 241,700 from Rs 249,700, according to FENEGOSIDA. The week saw fluctuations: a Rs 6,900 drop on Sunday, a Rs 500 rise on Monday, Rs 3,800 fall on Tuesday, Rs 2,800 gain on Wednesday, Rs 700 increase on Thursday, and a Rs 1,300 drop on Friday. The decline was driven by reduced investor expectations of further Federal Reserve rate cuts, a stronger US dollar, and higher treasury yields. Silver also slipped Rs 185 per tola, ending at Rs 3,100, reflecting broader investor shift away from precious metals.

Nepal’s Banks Face High Credit Risk Amid Aggressive Lending, Urgent Need for Risk Management:
Nepal’s banking sector faces rising risks as six out of 20 commercial banks have lent over 80% of their deposits, with Prime Bank leading at 86.26%. High credit-deposit (CD) ratios boost profitability but increase liquidity and default risks. Banks are urged to diversify lending, conduct cash-flow-based assessments, monitor non-performing loans, and maintain adequate capital buffers. Digital banking, customer transparency, and alignment with government policies can strengthen risk management. Regulators emphasize disciplined lending, internal controls, and long-term investments. By adopting these strategies, banks can safeguard depositor interests, maintain financial stability, and contribute to sustainable economic growth despite current systemic pressures.

Real Estate Trade Declines, Revenue Collection Drops in First Four Months of FY 2025/26:
Real estate trade across Nepal is gradually declining, leading to a drop in government revenue, according to the Land Management and Records Department (DoLMR). In the first four months of FY 2025/26, revenue collection fell from Rs 3.2891 billion in Shrawan to Rs 2.745 billion in Kartik. Despite government efforts, including recent amendments to the Land Use Regulations, revenue has not increased as expected. In Kartik alone, Rs 213.447 million was collected through service tax, Rs 156.296 million via registration fees, and Rs 997.884 million from capital gains tax. The decline highlights weakening activity in Nepal’s property market.

Foreign Students and Patients Boost Nepal’s Economy: Health and Education Inflows Surge:
Nepal is increasingly attracting foreign students and medical patients, generating significant foreign currency inflows. In the first three months of FY 2082/83, Nepal received NPR 85.52 million from health and education services, with foreign patients spending NPR 11.94 million—double the amount Nepalis spent abroad for treatment. Eye, cancer, cardiac, dental, and kidney treatments draw patients from China, India, Bangladesh, Bhutan, and Thailand. Simultaneously, foreign students spent NPR 73.27 million on tuition and living costs, showing growing confidence in Nepalese institutions. Experts suggest improving accreditation, transparent fees, streamlined visa/admission processes, and high-quality services to further strengthen Nepal as a regional health-education hub.

United Ajod Insurance Posts Massive Q1 Loss; Management and Risk Controls Under Scrutiny:
United Ajod Insurance Limited reported a staggering net loss of NPR 1.51 billion in Q1 of FY 2082/83, nearly eight times higher than the same period last year. Total expenses of NPR 5.79 billion far exceeded income of NPR 3.63 billion, while net claims surged to NPR 4.07 billion. Key financial indicators, including EPS (–26.18) and net worth per share (NPR 169.49), signal extreme weakness. Reinsurance assets, retained earnings, and cash reserves sharply declined. Analysts blame weak claims management, poor underwriting, and inadequate reinsurance structures rather than Gen Z protest-related damages. Experts warn urgent management overhaul is needed to prevent the company from entering a “High Risk Zone.”

Kul Man Ghising Inspects 14-Year-Delayed Kamala Bridge, Vows Completion by 2026:
Energy, Physical Infrastructure, and Urban Development Minister Kul Man Ghising, along with Minister Bablu Gupta and senior officials, inspected the long-delayed Kamala Bridge connecting Siraha and Dhanusha along the Postal Highway. The project, awarded to Pappu Lumbini JV in 2011 for Rs 249.1 million, was supposed to finish in 2014 but has faced repeated extensions—now totaling eight. Only 83% of physical progress has been achieved, with residents suffering due to detours. Ghising pledged to expedite completion and investigate irregularities. A revised design was approved after 2021 flood damages. The project aims for full completion and operation by July 2026.

IBN Approves Rs 93.40 Billion Investment for Betan Karnali Hydropower, Advances Key Energy Projects:
The Investment Board Nepal (IBN) has approved a Rs 93.40 billion investment for the 439 MW Betan Karnali Semi-Reservoir Hydropower Project. A meeting chaired by Prime Minister Sushila Karki at the PMO also formed a negotiation committee to prepare the Project Development Agreement. The Board endorsed the draft generation licence for the 669 MW Lower Arun Project and moved to seek Cabinet approval for the Direct Agreement draft of the 900 MW Arun-III project. Additionally, the survey licence for the 800 MW West Seti project was extended. The IBN also advanced an MoU and survey licence for a Rs 16 billion Auto Service Eco-Industrial Park and approved staffing and regulatory amendments.

14 Hydropower Companies Announce Dividends for FY 2082/83, Including Cash and Bonus Shares:
For FY 2082/83, 14 Nepali hydropower companies have declared dividends from last year’s profits, distributing cash and bonus shares to shareholders. Sahas Urja leads with 22.1053% total dividend (21% bonus, 1.2053% cash), followed by Mid Solu and Sikles Hydro at 15.789% each. Other companies like Arun Valley (8.421%), Century Energy (35%), and Nepal Hydro Developer (9.47%) have also announced dividends. Super Madi, Ngadi Group Power, Barun, Singgati, Hilton, Universal Power, Bhagwati, and Mountain Energy announced payouts ranging 5–21.0526%. Book closure dates are set for several companies to determine eligible shareholders for dividend receipt and AGM participation.

Security Printing Center Hands Over First QR-Code Driver Licences to Transport Department:
The Security Printing Center has delivered its first batch of 520 newly designed driver licences to the Department of Transport Management, following successful testing of the QR-code enabled format. The second phase is underway, with around 1,200 licences currently being printed. Under the November 12 agreement between the Center and the Department, a total of 1.2 million licences will be produced. The new licences feature 34 security elements, QR codes, and six layers of advanced security technology. In the coming days, the Center will also begin printing postage stamps, citizenship certificates, internal fee stickers, land ownership documents, and visa stickers, expanding its secure printing portfolio.

Consumer Court Sees Steady Rise in Cases This Fiscal Year:
Since its implementation last year, the consumer court system continues to register new consumer rights cases. In the current fiscal year alone, eight new cases have been filed, including five related to medical negligence, one to home and interior issues, one to vehicle quality, and one to software disputes. From the previous fiscal year (2081–82), nine unresolved cases carried over, bringing the total under consideration to 17. So far, four cases have been resolved, while 13 remain pending. The trend reflects growing awareness of consumer rights and the court’s active role in addressing grievances across various sectors.

Labour Shortage and Partial Mechanisation Leave Morang Farmers Struggling to Harvest Paddy:
Farmers in southern Morang are unable to complete the paddy harvest due to a severe shortage of agricultural labourers and limited mechanisation. With many workers migrating to India and the Gulf, farmers are left waiting in long queues for harvester machines, which cannot meet rising demand. Traditional labour communities have also moved away, worsening the crisis. Although harvesters cut paddy and separate grain, they cannot collect straw, forcing many farmers to burn it before planting mustard. Continuous rain further delayed harvesting. With operators overloaded and machines insufficient, farmers fear crop losses, highlighting how partial mechanisation has created new challenges for timely farming.

Biratnagar Milk Supply Scheme on Brink of Collapse as Farmers Halt Supply Over 200-Day Unpaid Dues:
The Biratnagar Milk Supply Scheme under the Dairy Development Corporation (DDC) is facing a severe financial crisis, with farmers stopping milk supply after going 200 days without payment. The project now owes around Rs 180 million, forcing the closure of multiple chilling centres in Ilam—including Puwakhola, Phikkal, and Laxmipur—which once collected over 3,400 litres daily. Only seven of the 11 centres remain operational, and daily milk collection has plummeted from 200,000 litres five years ago to just 13,000 litres. Farmers are shifting to private dairies and local industries, raising fears that the government-run project and livestock-based livelihoods may collapse.