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 for Fourth Consecutive Day, Banks Lead Gains

The stock market continued its upward trend on Thursday, the last trading day of the week, with the NEPSE index rising by 10.43 points to close at 2676. The market has increased by 116 points this week from 2560 points last week. While the transaction amount slightly decreased to Rs 6.66 billion from Rs 6.69 billion the previous day, 131 companies saw their share prices rise. The banking sector led the gains, increasing by 1.47 percent. Four companies, which are Sagar Distillery, Swastik Laghubitta, Jhapa Energy, and Srinagar Agritech, hit a 10 percent positive circuit.

NRB Issues New Rs 100 Bank Note

The Nepal Rastra Bank (NRB) announced on Thursday that a new series of the Rs 100 banknote has been brought into circulation today. The new note, which retains the same size and color as the old one, features a map of Nepal and the Ashoka Pillar in the center and a latent image of Mayadevi inside an oval on the left. Security features include a two mm wide security thread that changes color from red to green when tilted and a tactile black dot for the visually impaired. The note bears the signature of then-Governor Maha Prasad Adhikari, and the series number is marked in Nepali.

SSF Invests Rs 126 Billion in Various Schemes

The Social Security Fund (SSF) has invested Rs 126 billion, which includes Rs 95 billion in contributions from members. Executive Director Kabi Raj Adhikari stated on the 8th Social Security Day that the funds have been invested as per the Investment Procedure, including Rs 58.89 billion in fixed deposits, Rs 32.19 billion in treasury bills, and Rs 21.76 billion in development bonds. The SSF has also invested Rs 7.798 billion in loans to 20,000 contributors, offering special loans at 5.2 percent and home/educational loans at 5.86 percent interest.

Land Revenue Collection Declines by 6% in Current FY

Revenue collection and transaction volume from the real estate sector have both declined by approximately 6 percent in the first four months of the current fiscal year compared to the same period last year. Revenue collection from real estate, including registration fees and capital gains tax (CGT), amounted to Rs 11.91 billion by November 16, down from Rs 12.70 billion last year. Furthermore, the CGT collected from property transactions decreased by Rs 50 million to Rs 4.44 billion, primarily due to a lower volume of transactions.

Government Pays More in Debt Than It Borrows

In the first four months of the fiscal year 2025/26, the government paid Rs 150.88 billion in principal and interest, which exceeded the Rs 138.75 billion it borrowed. According to the Public Debt Management Office, the government received Rs 120 billion in domestic loans and Rs 18.75 billion in external loans. Total outstanding debt currently stands at Rs 2.729 trillion, which is 44.69 percent of the nation’s GDP.

Start-up Loan Applications Double to 10,244

The attraction for start-up enterprise loans is growing, with 10,244 applications submitted for the fiscal year 2025/26, double the number from last year, according to the Industrial Business Institute. Executive Director Umesh Gupta stated that due to a limited budget of Rs 730 million this year, the Institute aims to provide loans to only 400 to 550 entrepreneurs. Selected entrepreneurs will receive interest-subsidized, collateral-free loans ranging from Rs 500,000 to Rs 2 million at a 3 percent interest rate. Last year, 600 entrepreneurs received Rs 886.6 million in loans.

Nepal and Bangladesh Agree to Increase Power Export by 20 MW

Nepal and Bangladesh have agreed to increase power exports by an additional 20 MW, bringing the total export to 60 MW. This agreement was reached during the 7th Joint Steering Committee meeting at the energy secretary level in Dhaka, Bangladesh, on Thursday. The two sides also agreed that Bangladesh would form an expert committee to evaluate the Sunkoshi III Hydropower Project and move forward with the investment process, including finalizing the Joint Venture Agreement (JVA). Additionally, both countries agreed to work jointly to secure India’s consent for a trilateral Memorandum of Understanding (MoU) for energy cooperation.

NAC Still Owes Rs 1 Billion for Narrowbody Engine Repair

Nepal Airlines Corporation (NAC) still owes approximately Rs 1 billion, or 52 percent, of the total Rs 2.10 billion bill from the Israeli company Israel Aerospace Industries (IAI) for engine maintenance and leased engines. On Monday, NAC General Manager Amrit Man Shrestha paid Rs 303.6 million, bringing the total paid so far to around Rs 1.3 billion. The full bill, which includes two overhauled engines and a leased engine, is long overdue, and IAI has threatened to cancel the leased engine contract and pursue action in international court, pressuring NAC to make overdue payments.

Cooperatives to Halve Non-Banking Asset Loss Provision

The National Cooperative Regulatory Authority has amended its regulatory standard, allowing Savings and Credit Cooperative Societies to maintain only a 50 percent loss provision on foreclosed non-banking assets, down from 100 percent. This is a one-time relief, applicable to assets foreclosed before the end of last fiscal year, July 16. However, cooperatives that do not maintain a 100 percent loss provision will be barred from distributing any form of dividend or bonus until the necessary loan loss provision is met. Cooperatives with non-banking assets exceeding Rs 10 million must submit a time-bound sales action plan to the Authority.

PPMO Seeks Final Clarification from 14 Contractors

The Public Procurement Monitoring Office (PPMO) has sought a final seven-day clarification from 14 construction companies that were recommended for blacklisting due to unsatisfactory performance. The companies were previously given a 30-day notice but failed to submit a satisfactory response. The companies include Lab Kush Construction, Manakamana Construction, and Deepshree Engineering. The PPMO warned that failure to respond within the final deadline will result in action being taken.

Service Sector Dominates Gandaki Economy

The service sector is exerting pressure on the economy of Gandaki Province, contributing 55.8 percent to its GDP in the fiscal year 2024/25. This significantly outweighs the 27 percent contribution from agriculture and 16 percent from the industry sector, according to the Nepal Rastra Bank’s annual economic activity study. However, the report noted positive growth in tourism, with foreign tourist arrivals increasing by nearly 26 percent to 69,491 in the review year, though direct employment in the sector saw a slight 1.1 percent decline.

Koshi Province Bridge Projects Face Major Delays

Most of the 24 bridge projects under construction in Koshi Province, with a total contract value exceeding Rs 4.625 billion, are progressing at an extremely slow pace. Despite Rs 1.589 billion already being paid, the overall physical progress is disappointing, particularly for nine strategic bridges where financial progress is only Rs 15.2 million against a contract of Rs 769.8 million. The slowest projects include the Deumai Khola bridge (9 percent completion) and the Bansilaghat bridge (9 percent completion), with contractors citing geographical difficulties and the Covid period as reasons for the delay.

Kathmandu Deputy Mayor Orders Infrastructure Review

Kathmandu Metropolitan City Deputy Mayor and Monitoring Committee Coordinator Sunita Dangol instructed relevant departments to conduct a micro-study of existing infrastructure before designing new projects, particularly to integrate water recharge systems. The directive was issued during the monitoring of the Rs 35.1 million stone-paving project in the Jamal-Kamalachhi-Aasan area. Although the original plan included a water-recharge-friendly paving method, it was revised after tests proved it unsustainable for high traffic. The revised project, which started on July 8, 2024, is now expected to finish later than the original deadline.

Kanchanpur Customs Misses Revenue Target

The Kanchanpur Customs Office, Gaddachauki, collected Rs 206,802 in revenue over the first four months of the fiscal year 2025/26, falling short of the Rs 262,096 target. Information Officer Chakra Dev Bhatta attributed the shortfall to government tax concessions on imported goods and a restriction on vehicles carrying more than 10 tonnes across the Mahakali Bridge. This marks the fifth consecutive year the office has failed to meet its revenue target, having achieved only 81 percent of its target in the fiscal year 2024/25.

Sarangkot Forest Group Produces Organic Fertilizer

The Thotne Khola Community Forest User Group, Sarangkot, Pokhara Metropolitan-18, has started producing organic fertilizer by collecting leaf litter and bushes from the forest area. This initiative aims to increase soil fertility and create green jobs through natural resource utilization, according to Chairman Dinesh Shrestha. The group has produced and sold 35,000 kg of fertilizer through the Thotne Khola Agricultural Cooperative, earning Rs 13,000 initially. The organic fertilizer sells for Rs 25 per kg, and vermicompost for Rs 40 per kg.

Gurja Locals Donate Rs 1 Million for Bridge Construction

Locals from Gurja, a remote settlement in Dhaulagiri Rural Municipality-1, Myagdi, have raised Rs 1 million for the construction of a Bailey bridge over the Kamjakhani River on the under-construction Lulang-Gurja road. Lilmaya Chhantyal, Chairperson of the Gurja Society Kathmandu, stated the funds were collected through cultural programs. Ward Chairperson Jhak Bahadur Chhantyal mentioned that while the federal, provincial, and local governments allocated a budget for road construction, local contribution was necessary for the bridge due to a current budget shortfall. The goal is to bring the road to Gurja within one year.

Pappu-Mahadev JV Kankai Bridge Contract Terminated

The contract for the 723-meter Kankai bridge on the Hulaki Highway, connecting Jhapa and Gauriganj Rural Municipalities, has been terminated after 14 years of delay. The Hulaki Highway Directorate Office, Itahari, canceled the contract with the Pappu-Mahadev Khimti JV. The contract, signed on June 14, 2011, was supposed to be completed by June 13, 2013. Despite five extensions, only about 56 percent of the work was completed. The contract was worth Rs 340.9 million, and the Rs 17.1 million performance guarantee will be forfeited. The termination was based on the contractor’s unsatisfactory explanation and lack of commitment to resume work.

Udayapur Cement Resumes After 8 Months of Closure

The state-owned Udayapur Cement Industries has resumed operations after being completely shut down for eight months following a government decision to privatize it on April 28. General Manager Kobid Kafle stated that the industry, considered the country’s largest, was reopened with support from workers and the current government. To ensure long-term operation and gradually pay off its accumulated debts, the industry has requested a Rs 240 million loan from the Nepal government, which it pledges to repay with interest within three years. The factory, which employs 193 permanent staff, has a capacity to produce 800 metric tons of clinker daily.

Tulsipur Sub-Metropolitan Offers 5-Year Tax Break for New Industries

Tulsipur Sub-Metropolitan City is offering a five-year tax exemption to encourage investment and industrial growth. Mayor Tikaram Khadka announced that industries established within the 13-Bigha Industrial Village, located in Ward 16, will receive the tax break if the investors construct the industrial structures themselves. The policy aims to attract investment, create jobs, and increase production, with the local authority also offering subsidized land rent and ensuring necessary infrastructure, security, and amenities like roads, electricity, and water access.

Durga Bhagwati RM Subsidizes Wheat Seeds

Durga Bhagwati Rural Municipality in Rautahat has started distributing improved varieties of wheat seeds at a 50 percent subsidy to local farmers. The seeds are being distributed at a rate of four kg per 3645 square feet. According to Deputy Technical Assistant Koushila BK of the Agriculture Branch, the municipality purchased 5,200 kg of seeds. The distribution is part of the ‘Our Campaign, Happy Farmer’ initiative for the fiscal year 2025/26, requiring farmers to present a copy of their citizenship and land ownership certificate.

Sunil Bhakta Shrestha Leads Nepal-Vietnam Chamber

The 14th General Assembly of the Nepal-Vietnam Chamber of Commerce and Industry elected a new working committee led by entrepreneur Sunil Bhakta Shrestha as president on Wednesday. The new team includes Senior Vice Presidents Deepak Kumar Malhotra and Urmila Shrestha. President Shrestha affirmed the Chamber’s commitment to boosting trade and investment between the two nations, noting the great potential for expanding the current trade capacity. Honorary Consul General of Vietnam to Nepal, Rajesh Kaji Shrestha, stressed the need for direct flights to capitalize on growing market opportunities for Nepali products.

Capital Gains Tax from Share Market Plummets 58%

The government’s collection of Capital Gains Tax (CGT) from share market transactions fell by 58.54 percent to Rs 3.383 billion in the first four months of the current fiscal year, compared to Rs 8.13 billion collected during the same period last year. According to CDS and Clearing (CDSC), the decrease is due to volatility and a decline in share trading, with political instability being cited as a key factor creating uncertainty among investors. From October 18 to November 16 alone, CGT collection reached Rs 380.5 million, with short-term investors contributing the most at over Rs 163.5 million.

Gold and Silver Prices Fluctuate on Thursday

The price of gold decreased by Rs 400 per tola in the domestic market on Thursday, while the price of silver increased by Rs 60 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold is trading at Rs 248,400 per tola and silver is trading at Rs 3,280 per tola. This follows Wednesday’s closing prices of Rs 248,800 for gold and Rs 3,220 for silver. In the international market, gold is trading at USD 4,154 per ounce and silver at USD 53 per ounce on Thursday.