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 Rises by 39.92 Points to Settle at 2,600.22

On the first trading day of the week, the Nepal Stock Exchange (NEPSE) index increased by double digits. Today, the stock market benchmark NEPSE index rose by 39.92 points, reaching 2,600.22.A total of 13,381,926 shares of 334 companies were traded 76,028 times, amounting to a transaction value of Rs. 6.28 billion. Except for the  mutual fund group, all sectoral sub-indices increased.

NRB to Withdraw Rs 50 Billion Liquidity via 84-Day Instrument

Nepal Rastra Bank (NRB) is set to withdraw Rs 50 billion in liquidity from the financial system on Sunday using an 84-day deposit collection instrument. This move is intended to manage the persistent excess liquidity, which currently surpasses Rs 7.4 trillion. The central bank uses such structural open market operations to manage liquidity and stabilize market interest rates. The deposit instrument’s principal and interest will be paid on February 17, 2027, and only licensed ‘A,’ ‘B,’ and ‘C’ class institutions can participate.

Korala Border Post Revenue Expected to Exceed Rs 4 Billion This Month

The Korala border post in Upper Mustang is expected to collect over Rs 4 billion in revenue by the end of mid-December. According to the Mustang Customs Office, revenue reached Rs 3.83 billion by Friday. Since import-export resumed on September 15, at least 1,731 electric vehicles (EVs) and 1,030 cargo containers have entered Nepal. Exports, mainly handicrafts and clothing, saw 62 trucks cross into China. Total imports have exceeded Rs 7.5 billion, while exports stand at over Rs 85 million. A key Himalayan trade route shows significant commercial activity.

Nepal Approves Rs 36 Billion in FDI in Four Months

Nepal has approved over Rs 36 billion in Foreign Direct Investment (FDI) commitments for 382 projects within the first four months of the current fiscal year, 2025/26. This marks a significant increase from Rs 19 billion during the same period last year. The agriculture and forest sector attracted the largest investment, securing over Rs 21.88 billion for 13 projects. The ICT sector received the highest number of projects (205). The tourism sector also secured a substantial Rs 8.94 billion across 118 industries.

Nepal Launches Project to Electrify Industries, Achieve Net-Zero 2045 Goal

The government has launched the Nepal Clean Air and Prosperity (CAP) Project, supported by the World Bank, to replace over 1,000 industrial boilers that currently use polluting fuels like coal and wood. The project will provide financial and technical support to shift to electric or biomass pellet technology. This initiative supports Nepal’s commitment to achieving net-zero carbon emissions by 2045. The project, costing an estimated Rs 109.9 million for the initial phase, will also upgrade 30 and establish five new air quality monitoring stations across the country.

3 Sites on BP Highway Under Reconstruction for Rs 8.5 Billion

The permanent reconstruction of the BP Highway, severely damaged by floods and landslides in 2023 and 2024, has begun at three key locations. The floods damaged approximately 30 kilometers of the road in the Kavrepalanchok and Sindhuli sections. The Division Road Office confirmed that contracts have been awarded for the permanent construction of three main segments. The work is targeted for completion within the next two years and will involve upgrading the highway to a two-lane standard, including widening five bridges. The overall cost has been estimated at Rs 8.5 billion. Key infrastructure is being rebuilt to enhance connectivity.

E-Passport Supply to Normalize with Deal for 700,000 Units

The supply of electronic passports (e-passports) is set to normalize following the Department of Passports signing a contract with the original supplier, Idemia Identity and Security of France. The deal, reached through the personal initiative of Prime Minister Sushila Karki, secures the purchase of 700,000 new e-passports at the old price. The department will immediately resume its normal distribution pace of around 6,500 passports per day, up from the restricted 1,000 per day that caused severe shortages. The first consignment is expected to arrive within three weeks. The government resolves the passport shortage crisis to ease public access.

Gandaki Production of Noodles, Beer Rises Amid Low Credit Flow

A Nepal Rastra Bank study shows that industrial production in Gandaki Province saw a mixed trend in the fiscal year 2024/25. Noodle production increased by a massive 44.98%, followed by beer at 12.26% and cigarettes at 10.53%. However, total industrial output utilization remained low at 39.19%, and credit flow to the sector declined by nearly 10%. Only Rs 27.91 billion was disbursed. The report concluded that poor infrastructure and lack of technical staff are key reasons for the underperformance.

Lumbini Falls Short: 9.25% Revenue Collected

Lumbini Province has significantly underperformed in revenue collection, achieving only 9.25% of its annual internal revenue target in the first four months of the current fiscal year. The province collected Rs 451.5 million against a target of Rs 4.88 billion. Senior Account Controller Rabindra Aryal stated the figure includes non-revenue items like grant returns. Key revenue sources include vehicle taxes, forest income, and driver’s license fees, but the overall collection rate is facing severe scrutiny from financial experts.

Sudurpashchim Industrial Capacity Utilization Drops to 34.47%

Sudurpashchim Province recorded a major decline in industrial output, with average capacity utilization dropping to only 34.47% in the fiscal year 2024/25. Production saw significant declines in goods like wheat flour (65.09%), sugar (60.22%), and bricks (42.86%), primarily due to reduced market demand. Despite a low overall utilization, credit flow to the sector increased by 4.37% to Rs 26.72 billion. Kailali district absorbed the largest portion of these industrial loans, accounting for 79.13%. New industries in the province have generated 5,777 jobs.

Over 600 Workers Jobless as Plywood Factory Shuts Down in Kohalpur

More than 600 workers at Yoyo Plywood Industries in Kohalpur-14, Banke, have lost their jobs after the factory closed three months ago. The factory’s managing director, Rajeev Shrestha, stated the closure was caused by persistent protests and production disruption organized by the ‘All Nepal Industrial Workers Union,’ whose leadership he claims includes many individuals not employed at the factory. Shrestha said the industry was already losing Rs 500,000 daily before the closure. The Labor and Employment Office confirmed the factory’s account was frozen after worker complaints about fair wages. Industrial dispute results in major job losses in the region.

Frequency Fees Jump 41.25% to Rs 4.95 Billion

The government collected Rs 4.958 billion in frequency fees in the last fiscal year, 2024/25, a sharp 41.25% increase over the Rs 3.509 billion collected in the fiscal year 2022/23. This revenue was paid by ten companies to the Nepal Telecommunications Authority (NTA). The two largest contributors were Nepal Telecom with Rs 2.7 billion and Ncell Axiata Limited with Rs 2.25 billion. The fee is collected for the use of the radio frequency spectrum, which is a key national resource.

Kailali Farmers Face Crisis as Paddy Goes Unsold Amid Lower Yield

Farmers in the Kailali district are struggling to sell their paddy, as the Food Management and Trading Company Limited and private traders have stopped purchases. The Food Company halted buying after exceeding its quota of 35,000 quintals, having bought 37,055.91 quintals within two weeks, leaving farmers unable to secure money for wheat seeds and fertilizer. Compounding the issue, total paddy production in Kailali dropped by about 7%, or 22,186 metric tons, this year due to intermittent drought, fertilizer shortages, and power cuts for irrigation. Agricultural challenges threaten farmers’ livelihoods and local supply.

New Five-Kilometer River Boating Route Opens in Sauraha

A new five-kilometer river boating route has been launched on the Rapti River in Sauraha to attract tourists. The route runs from Jindagani Ghat to Bhimpura Ghat in the eastern part of the Chitwan National Park. The service, operated by Kinara Restaurant and Bar, takes approximately one hour and offers a combined experience of jungle safari through the Kunaroj Buffer Area forest and water safari for wildlife viewing. Ten boats, each seating ten people, are operating, allowing 100 tourists per turn, with two turns daily. New tourism activities enhance the Chitwan experience.

Solu Hydropower Opens IPO for Locals

Solu Hydropower Company opened its Initial Public Offering (IPO) on Sunday, initially targeting project-affected locals and Nepali workers in foreign employment. The company is issuing 20 million shares, which represents 20% of its capital. 10 million shares are reserved for locals in Solukhumbu and 1 million for foreign employment workers. The company’s 82 MW Lower Solu Hydropower Project is a run-of-river project, already in commercial operation. The project’s total cost, including interest, is estimated at Rs 16.30 billion.

NMB Bank Proposes 10% Total Dividend

The NMB Bank Board of Directors, meeting on Friday evening, proposed a 10% dividend for its shareholders. The dividend plan includes 5% bonus shares and a 5% cash dividend. This proposal must still be approved by the Nepal Rastra Bank and the bank’s general assembly before distribution. The bank’s share is currently trading at Rs 237 per unit. This dividend is an increase from the last fiscal year, 2021/22, when the bank distributed an 8.25% cash dividend.

10 Indian Unions Condemn New Labor Codes

Ten major Indian trade unions have denounced the government’s newly implemented labor codes as a “deceptive fraud” against workers and demanded their immediate withdrawal. Unions, including the Centre of Indian Trade Unions, held protest marches in Bhubaneswar on Saturday and plan nationwide protests on Wednesday. The codes, which aim to liberalize work rules, allow for longer factory shifts and raise the threshold for requiring prior layoff approval from 100 to 300 workers. The Bharatiya Mazdoor Sangh, a right-wing union, supports the implementation, citing improved worker protections.

Korean SMEs Seek Higher Foreign Worker Quota

A survey by the Korea Employers Federation shows that over 60% of South Korean Small and Medium Enterprises (SMEs) rely on foreign workers due to severe domestic labor shortages, with 45.2% calling for an increase in the annual quota. The non-professional EPS quota for 17 member countries, including Nepal, is 130,000 this year, which is 35,000 less than last year. Despite the reduction, Nepal remains a priority, with over 10,000 youth having entered Korea so far this year. Companies are urging the government to make the worker supply system more flexible to match economic conditions.

Gold Price Jumps to Rs 244,600 Per Tola

The price of gold in the domestic market rose sharply on Sunday, driven by increased demand and price hikes in the international market. Fine gold is now set at Rs 244,600 per tola (approximately 11.66 grams), marking an increase of Rs 2,900 from Friday’s rate of Rs 241,700. Silver also saw a price increase, trading at Rs 3,135 per tola. Globally, gold is trading at USD 4,063 per ounce and silver at USD 51 per ounce on Sunday, according to the Federation of Nepal Gold and Silver Dealers’ Association.