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 Drops by 4.28 Points; Turnover Shrinks to Rs 4.71 Billion

The Nepal Stock Exchange (NEPSE) decreased by 4.28 points on Monday, settling at 2,645 points. Following a 26-point drop on the previous day, the market’s turnover also shrank significantly from Rs 7.8 billion to Rs 4.71 billion today. While 124 companies saw a rise in value, 126 declined. Four companies, including Sagar Distillery and Swastik Laghubitta, saw a 10 percent price increase.

Proposal Made to Issue Rs 35.25 Billion Shares for Upper Arun Project

A proposal has been approved to issue Rs 35.25 billion in shares to the public for the 1,063 MW Upper Arun Semi-Reservoir Hydroelectric Project in Sankhuwasabha. This amount represents 49 percent of the total equity (Rs 71.94 billion), which itself is 30 percent of the total project cost of Rs 239.79 billion. The shares will be divided among non-resident Nepalis (18%), local residents of Sankhuwasabha (10%), people from backward regions, and employees of the promoter body. The proposal was approved by the Nepal Electricity Authority (NEA) Board of Directors on Thursday.

NRB Eases Monetary Policy, Lowers Interest Rate

The Nepal Rastra Bank (NRB), in its first quarterly review of the fiscal year 2025/26 Monetary Policy, adopted a flexible stance by lowering the rates in its interest rate corridor. The standing liquidity facility (SLF) rate, which is the upper limit, has been reduced from 6.00 percent to 5.75 percent, and the policy rate has been cut from 4.50 percent to 4.25 percent. The NRB also removed the mandatory provision that institutional fixed deposit rates must be at least one percentage point lower than individual fixed deposit rates.

NOC Cuts Diesel/Kerosene Prices, Hikes Aviation Fuel

The Nepal Oil Corporation (NOC) has reduced the price of diesel/kerosene by Rs 1 per liter, effective today. Following the adjustment, the price is Rs 143.50 per liter for the first category. However, the NOC has increased the price of aviation fuel (domestic and international). The domestic price was raised by Rs 6 per liter to Rs 134, and the international price was increased by USD 42 per kiloliter to USD 1,015.

Land Management Extends Deadline for Real Estate Licensing

The Department of Land Management and Archive has extended the application deadline for firms, companies, or institutions seeking a license to conduct real estate business until December 13. The extension was granted due to a low number of applications following the initial public call on September 29. The license is mandated by the Land Revenue Act, 1978, to make the real estate business more transparent and professional. The first phase of regulation focuses on transactions exceeding Rs 30 million in six metropolitan and eleven sub-metropolitan areas. Last month, the sector generated Rs 2.745 billion in revenue.

NRB Allows Banks to Merge Urban Branch Offices

The Nepal Rastra Bank (NRB) has allowed banks and financial institutions to merge or integrate their branch offices located in metropolitan areas. This is a new policy introduced in the first quarterly review of the Monetary Policy, as the previous system only allowed for the merger of branches belonging to already-merged banks. The central bank stated that this change is being implemented given the significant presence of bank branches in metropolitan areas and the growth of electronic payment transactions.

CIB Arrests Prabhu Bank CEO and Two Senior Officials

The Central Investigation Bureau (CIB) of Nepal Police has arrested Prabhu Bank CEO Ashok Sherchan, Deputy CEO Mani Ram Pokharel, and Chief Credit Officer Rivas Shrestha on charges of banking offenses. Sherchan was arrested at the bank’s headquarters in Bijulibazar based on a Nepal Rastra Bank report. This follows the Kartik 11 arrest of Prabhu Group’s former chairman, Devi Prakash Bhattachan. Preliminary investigation suggests that Bhattachan and Sherchan were involved in the embezzlement of nearly Rs 1 billion in deposit money collected from nearly 3,000 cooperatives through Prabhu Management Pvt Ltd between mid-November 2022 and mid-June 2024.

Kerung Border Closure for 5 Months Causes Rs 18 Billion Revenue Loss

The closure of the Kerung trade border in Rasuwa due to floods and landslides on July 8, 2025, has left between 500 and 600 containers of festival goods stranded for five months. The delay is causing huge losses for businessmen, especially as seasonal goods like winter clothing were imported for Teej, Dashain, and Tihar. Rasuwa Customs Office reported an estimated revenue loss of Rs 18 billion during the five-month closure. Work is underway to build a Bailey bridge, expected to be technically tested and operational before January.

NRB Allows Banks to Merge Branches Within Metropolitan Cities

The Nepal Rastra Bank (NRB) has allowed banks and financial institutions to integrate or adjust their branch offices located within metropolitan cities. This decision, announced in the first quarterly review of the fiscal year 2025/26 Monetary Policy, enables banks to make the decision themselves. The central bank introduced this measure in light of the growing volume of electronic payment transactions and the high number of bank branches already operating in metropolitan areas.

Supreme Court Rules Against Blacklisting Inactive Company Directors

The Supreme Court ruled that an inactive company director, who has completed the process of separation from the company’s operating committee, cannot be placed on a blacklist for failure to repay a loan. The ruling was issued in a dispute between Nepal Plastron Industries and a commercial bank. Justices Hari Prasad Phuyal and Sunil Kumar Pokharel stated that applying financial liability to a director who technically remains on the board but sold their shares before the loan was taken is not justified. The Court emphasized that placing someone on a blacklist without due process can be viewed as a “civil death” and must adhere to the principles of natural justice.

NRB Offers Loan Restructuring Relief to Flood Victims

The Nepal Rastra Bank (NRB) announced a relief package for entrepreneurs affected by recent floods and landslides in its first quarterly monetary policy review. Borrowers in affected districts, including Ilam, will be permitted to restructure and reschedule their loans by paying a minimum of 10 percent of the interest due. This one-time provision aims to provide support for businesses and enterprises impacted by natural disasters.

ECTS on Rail Cargo Imposes High Financial Burden on Nepal

The mandatory Electronic Cargo Tracking System (ECTS) on rail-transported containers from Indian ports to Nepal is imposing a significant financial burden on Nepali consumers. Importers must pay INR 7,100 per container for the system: INR 3,300 for the journey to Nepal and INR 3,800 for the return of the empty container. Although the system was introduced in 2019 to curb trade diversion and reduce demurrage fees, stakeholders argue its utility is low, particularly as the government plans to extend it to road transport as well.

Kakarvitta Customs Sees Trade Deficit in First Four Months

The Mechi Customs Office in Kakarvitta reported a trade deficit in the first four months of the current fiscal year. Imports totaled over Rs 16.2 billion, a 12.12 percent increase from the previous year. Exports, however, saw a decline of 4.12 percent, totaling Rs 8.96 billion. Revenue collection from both imports and exports totaled Rs 5.46 billion, a 15.66 percent increase. Exports of cardamom, veneer sheets, and lentils increased significantly, while tea, plywood, and iron sheets saw a sharp drop.

Loan Slowdown and Rising NPLs Mark Q1 FY

The first quarter of the current fiscal year (2025/26) showed a sluggish growth in bank and financial institution (BFI) lending despite a rise in deposit mobilization. According to the Nepal Rastra Bank (NRB), deposit mobilization increased by 3.0 percent to Rs 7.48 trillion, but private sector credit flow grew by only 1.5 percent, down from 2.5 percent in the previous year’s period. Furthermore, the average Non-Performing Loan (NPL) ratio across BFIs climbed to 5.26 percent by the end of October 17, up from 4.42 percent the previous year, indicating a rise in bad debt.

NRB Raises Microfinance Collateral Loan Limit to Rs 1.5 million

The Nepal Rastra Bank (NRB) has increased the maximum limit for collateral-based loans provided by microfinance financial institutions from Rs 700,000 to Rs 1.5 million. This decision was made in the first quarterly review of the Monetary Policy. The central bank also announced provisions to allow for the rescheduling of loan repayment tables for borrowers facing difficulties in making payments, a move intended to stimulate credit flow amid high liquidity and low lending activity.

Overdraft Loan Limit Doubled to Rs 10 million

The Nepal Rastra Bank (NRB) has doubled the limit for individual overdraft loans from Rs 5 million to Rs 10 million in its first quarterly monetary policy review. The limit had previously been capped at Rs 5 million due to concerns over misuse. This increase is expected to boost demand for personal consumption loans.

Government Terminates 38 Road Contracts; 235 on Watchlist

The government has successfully terminated 38 out of 235 non-performing road and bridge contracts under the Department of Roads (DOR). According to DOR data, more termination notices will be published soon. The cancellations targeted projects that failed to meet deadlines despite multiple extensions, violated fundamental contract agreements, or were abandoned by the contractors. The largest contract terminated so far is the Kankai Bridge project in Jhapa, which, after 14 years and five extensions, only achieved 65 percent physical progress.

11,577 Trees Cleared for East-West Highway Expansion

An order has been issued to cut 11,577 trees across the Sarlahi, Mahottari, and Dhanusha districts for the expansion of the East-West Highway’s Kamla–Dhalkebar–Pathlaiya section to four lanes. The largest number of trees will be cut in Mahottari (6,027), followed by Sarlahi (3,674) and Dhanusha (1,876). Cutting has begun in Sarlahi and Dhanusha. Project Chief Rajesh Kumar Das stated that major challenges remain in relocating electricity poles and water pipes, despite the resolution of the tree-cutting issue that had previously delayed the work.

High Demand Pushes Cardamom Price to Rise

The price of cardamom is expected to reach an average of Rs 100,000 per man (40 kg) this year, encouraging farmers in Taplejung to speed up harvesting. Farmers like Suk Bahadur Tapmaden are rushing to process and sell their crops due to volatile market prices. The high-quality dried cardamom is currently trading at up to Rs 105,000 per man. However, farmers are concerned about the reliance on Indian markets and the risk of price instability and disease, urging the government to establish processing centers and explore alternative markets.

Request for Sovereign Digital Industrial Policy and Institutional Reform

Nepal urgently requires a new industrial policy centered on digital sovereignty to thrive in the digital age, treating data as public infrastructure and AI as a strategic asset. The current bureaucratic system, which favors regulation over creativity, needs a cultural shift to become an ecosystem builder. While the government has introduced a 39-point ‘Immediate Improvement Action Plan, 2025’ to streamline services, the key challenges, such as access to global markets, lack of infrastructure, and political instability, must be addressed through a comprehensive strategy that links technology to governance and industrial production.

Six Industries Pay Second Installment of Dedicated Trunkline Electricity Dues

Six industries, including Hulas Steel, Ashok Steel, Hama Iron, Laxmi Steel, Sarbottam Cement, and Shubhashree Agni Cement, have paid the second installment of their outstanding Dedicated Trunkline electricity dues to the Nepal Electricity Authority (NEA). The payments come despite the NEA dispatching letters to industries requesting the second installment, ignoring the Prime Minister’s directive to revive the Administrative Review Committee to resolve the disputed premium electricity charges.

Chicken Meat Price Rises for Second Time in Two Weeks

The price of chicken meat has increased for the second time in two weeks, with the Nepal Poultry Federation implementing a Rs 10 per kg hike starting today, Monday. The price of live chicken has risen to Rs 240 per kg, up from Rs 230. Similarly, prepared chicken meat now costs Rs 330 per kg, up from Rs 320. The Federation attributed the price hike to a drop in chicken production due to colder weather.

Food Company Purchases Rs 26.8 Million Worth of Paddy in Banke

The Food Management and Trading Company, Nepalgunj, has purchased 7,503.20 quintals of paddy worth Rs 26.8 million from farmers in Banke since November 9. The purchase included 2,503.50 quintals of coarse paddy and 4,999.70 quintals of medium paddy. Office Chief Ram Saran Lamichhane stated that the 20,000 quintal quota for this year is half of last year’s, and the medium paddy quota is already complete. The payment for the paddy is being made directly to the farmers’ bank accounts.

Silver Price Hits Record High of Rs 3,535 per Tola

The price of silver has reached a record high, crossing the Rs 3,500 mark for the first time. The Federation of Nepal Gold and Silver Dealers’ Association set the price for today at Rs 3,535 per tola (11.66 grams), an increase of Rs 45 from the previous day. The price of gold also rose by Rs 1,400 to Rs 253,600 per tola, driven by rising rates in the international market.