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 Sees Minor Drop; Turnover Shrinks on Tuesday

The Nepal Stock Exchange (NEPSE) index closed marginally lower on Tuesday, decreasing by 0.53 points to settle at 2644.70. The market’s highest point for the day was 2652 points, recorded at 12:51 PM. Trading volume also saw a decrease, shrinking to Rs 4.48 billion from Rs 4.71 billion the previous day. While 125 companies recorded price increases, 119 saw decreases. Six companies, including Sagar Distillery, Swastik Laghubitta, and Jhapa Energy, saw their share prices surge by 10 percent, despite minor dips in groups like banking, microfinance, and life insurance.

NRB Eases Credit Policy to Manage System Liquidity and Stimulate Economy

The Nepal Rastra Bank (NRB) is gradually easing its credit policy to push excess liquidity in the financial system toward the general public. With banks currently holding approximately Rs 1.1 trillion in lendable funds, the central bank’s latest measures, such as doubling the individual overdraft limit from Rs 5 million to Rs 10 million and increasing the microfinance collateralized loan limit from Rs 700,000 to Rs 1.5 million, aim to channel this money out. This policy shift, despite some concerns about potential non-productive lending, is seen as an attempt to boost consumption and revive slow economic activity, given the lack of immediate demand in the productive sector.

Remittance Inflows Surge by 35.4% in FY’s First Quarter

Remittance inflows registered a substantial 35.4 percent increase during the first three months of the current fiscal year. According to data released by the Nepal Rastra Bank (NRB), a total of Rs 553.31 billion in remittances entered the country during this period. This surge compares favorably to the previous year, when inflows increased by 11.9 percent, totaling Rs 408.77 billion. The current account achieved a surplus of Rs 237.59 billion, and the Balance of Payments (BOP) recorded a surplus of Rs 264.03 billion. Meanwhile, the total merchandise export increased by 89.6 percent, and imports rose by 19.8 percent.

NRB Maintains Flexible Monetary Stance, Eases Credit Access in Quarterly Review

The Nepal Rastra Bank (NRB) released the first quarterly review of the monetary policy for the current fiscal year 2025/26, maintaining its flexible course and introducing looser provisions. Claiming the economy is stabilizing after the Gen Z protests, the NRB announced credit concessions, allowing entrepreneurs in flood- and landslide-affected districts, including Ilam, to restructure or reschedule loans once upon payment of 10 percent interest. The NRB bank cut the upper limit of the interest rate corridor, the Standing Liquidity Facility (SLF) rate, from 6 percent to 5.75 percent, and the policy rate from 4.50 percent to 4.25 percent. Furthermore, the maximum limit for individual overdraft loans was doubled from Rs 5 million to Rs 10 million, and the maximum collateralized loan limit for microfinance institutions was raised from Rs 700,000 to Rs 1.5 million.

Floods and Rain Damage Agriculture and Livestock Sector by Rs 6.672 Billion

Heavy rainfall, floods, and landslides during two separate periods in September and October 2025 caused over Rs 6.672 billion in damage to the agriculture and livestock sector. According to the Ministry of Agriculture and Livestock Development, the damage is expected to reduce the national paddy production by five to seven percent. The largest losses occurred in Koshi Province, exceeding Rs 2.54 billion. The late-season rain in October alone caused Rs 2.911 billion in damage, mainly affecting ripening paddy crops, which accounts for Rs 2.664 billion of the total loss.

Sugarcane Farmers Suspend National Highway Blockade

Sugarcane producers have temporarily postponed their planned indefinite blockade of the national highway in Hariwan, Sarlahi, which was scheduled to begin on December 1. This decision follows positive high-level negotiations between the Nepal Sugarcane Producers Federation and the government regarding the determination of the sugarcane support price and the payment of outstanding subsidies. Following a written request from the Minister of Agriculture and Livestock Development, the Federation agreed to suspend the agitation for two weeks, averting a potential disruption to traffic. The Federation demands the immediate payment of the remaining Rs 35 per quintal subsidy and the implementation of a scientific support price of Rs 710 per quintal, based on expert recommendations.

Telecom Sector Sees Rs 9.1 Billion Outflow

The cost of importing equipment and paying for bandwidth in the telecommunications sector surged to Rs 9.1 billion in the last fiscal year, 2024/25. According to the Nepal Telecommunications Authority (NTA), this amount includes Rs 3.54 billion recommended for foreign exchange for equipment imports and Rs 5.55 billion for bandwidth payments. The outflow is a sharp increase from the previous fiscal year, 2023/24, when only Rs 719.6 million was recommended for equipment and Rs 1.19 billion for bandwidth, due to a court dispute that had temporarily stalled foreign exchange recommendations.

Finance Minister Emphasizes Protection of Public and Private Assets

The Minister of Finance stressed the need for all sectors to be vigilant in protecting public property, asserting that any asset created by the government or the private sector belongs to Nepal. Addressing the 29th annual anniversary of the Society of Economic Journalists-Nepal (SEJON) on Monday, the minister emphasized that the proper use of taxpayer money is paramount. He highlighted that irresponsible media reports and unverified information could negatively impact international relations and the investment climate. The Minister of Industry, Commerce, and Supply affirmed that the government is actively working to improve the investment environment, prioritizing governance, service delivery, and the security of private sector investment to boost confidence.

Ministry Orders Butwal Agricultural Market Committee to Open 68 Stalls for Tender

The Department of Agriculture under the Ministry of Agriculture and Livestock Development has ordered the Butwal Agricultural Produce Market Operations Committee to immediately initiate the tender process for 68 stalls and comply with the court’s verdict. The instruction comes after the committee ignored a district court order to open bids for the stalls, despite having received 267 bids following a tender notice published on September 9, 2024. The Ministry, through a letter on December 1, mandated immediate compliance with the court’s final decision issued on November 6, which instructed the opening of the bids without further delay.

Sugar Stockpiles Surge to 10,000 Tons Due to Smuggling

Three sugar mills in Madhesh Province are holding over 10,000 tons of sugar in their warehouses just before the start of the crushing season, due to their inability to compete with cheaper, illegally imported sugar from India. Currently, smuggled Indian sugar is sold to retail traders for Rs 67 per kilogram, which is Rs 13 cheaper than the Rs 80 per kilogram price of domestic sugar. This price difference has severely curtailed sales, leaving 10,300 tons stockpiled in mills like Reliance Sugar Mill in Bara, Everest Sugar Mill in Mahottari, and Indu Shankar Sugar Mill in Sarlahi. Domestic sugar producers estimate that up to 40,000 tons of sugar are smuggled into Nepal annually, affecting millions in revenue.

PPMO Blacklists Two Construction and Supply Companies for Three Years

The Public Procurement Monitoring Office (PPMO) has blacklisted two construction and supply companies for a period of three years. The first company was blacklisted following a recommendation from the Janata Tatbandh Program Field Office Number 2, Jaleshwar, Mahottari. The second company was blacklisted based on a recommendation from the Helambu Rural Municipality Office, Sindhupalchok. According to a notice issued on Monday, these companies are barred from participating in any procurement process during the blacklisting period, as mandated by Section 63 (1) of the Public Procurement Act, 2007, due to failure to meet contractual obligations.

Contract for 22.66 KM Postal Highway Section Terminated

The Postal Highway Directorate has terminated the construction contract for the 22.66-kilometer Inaruwa-Kaptanganj section of the highway in Sunsari district. The contract, valued at Rs 527 million and awarded to a joint venture on January 16, 2022, was canceled because the construction progress was only about 18 percent, significantly below the required rate. The Directorate stated the termination was due to the contractor’s failure to resume work despite repeated warnings and commitment breaches. Consequently, the government will confiscate the contractor’s performance bond of Rs 169.4 million and collect the advance payment, including a 10 percent interest.

27-Kilometer Myagdi Section of Beni-Jomsom-Korala Road Blacktopped

A 33-kilometer stretch of the Beni-Jomsom-Korala road in the Myagdi section has been blacktopped after 19 years of construction. Out of the total length from Beni to Kavrebhir, the border of Mustang, the road has been widened to 11 meters and blacktopped on sections, including 11 kilometers of the 16.5-kilometer Nagdhunga-Kaikukhola section, at a cost of Rs 630 million. Similarly, 15 kilometers of the 19-kilometer Rahughat-Nagdhunga section was blacktopped at Rs 660 million. Additionally, motorable bridges were constructed at various points, along with the installation of bailey bridges over Bhurungkhola and Rupsekhola, significantly enhancing connectivity.

Ncell Dominates Telecom Forex Outflow

A private telecom operator and an internet service provider led the foreign exchange outflow in the telecom sector during the last fiscal year, 2024/25. For equipment imports, a mobile operator received the highest recommendation for exchange at Rs 2.73 billion, followed by the national telecom operator at Rs 812.7 million. Similarly, for bandwidth payments, the mobile operator received the highest recommendation at Rs 2.14 billion, while a major internet service provider was second at Rs 1.5 billion. The NTA monitors these companies and their services to prevent fraud related to the exchange recommendations.

Additional Rs 15 Million to Infrastructure Reconstruction Fund

Nepal Life Insurance Company Limited contributed Rs 15 million to the government-established Physical Infrastructure Reconstruction Fund, bringing the total deposited in the fund to Rs 118.2 million as of Sunday. The insurance company made the contribution under its corporate social responsibility commitment to support the rebuilding, economic recovery, and relief efforts following the damage caused by the Gen Z protests on September 8 and 9. The check was jointly handed over to the Minister of Finance by the Chairman and other top officials of the insurance company.

Kamana Sewa Bikas Bank Receives Approval to Issue Preference Shares

The Securities Board of Nepal (SEBON) has granted approval to a development bank to issue 3.5 million units of unredeemable, non-cumulative preference shares. The shares, which have a face value of Rs 100 and a declared dividend rate of 9 percent, were approved by the bank’s 18th Annual General Meeting. This issuance will further strengthen the development bank’s capital structure and increase its capital fund, thereby expanding its business opportunities. The issuance follows a central bank circular allowing banks and financial institutions to issue unredeemable non-cumulative preference shares as an alternative to rights shares to bolster capital adequacy.

Salpa Development Bank IPO to Open for Foreign Workers on December 11

Salpa Development Bank is set to open the first phase of its Initial Public Offering (IPO) for Nepalis working abroad starting December 11. The development bank will issue a total of 5,223,880 units of shares, with the public group holding a 33 percent share. Out of the public quota of 1,723,880 shares, 172,388 shares will be allocated to foreign workers. Eligible applicants can apply for a minimum of 10 and a maximum of 25,000 units. The application window closes on December 15 or extends to December 25 if undersubscribed.

Nvidia Invests USD 2 Billion in Synopsys for AI-Driven Chip Design Tools

Nvidia announced a USD 2 billion investment in chip design software maker Synopsys as part of an expanded multi-year partnership to jointly develop new AI-powered tools. The collaboration aims to shift simulation work across various high-tech industries, such as chip design and jet engines, from traditional central processing units (CPUs) to Nvidia’s graphics processing unit (GPU) chips. According to the CEOs, this shift could dramatically cut simulation times from weeks to just a few hours. The deal is non-exclusive, and the cash will provide Synopsys with “optionality” as it adapts its software for the new AI-accelerated workflow.

Smuggling Threatens Farmer Payments

Despite 13 sugar mills preparing to start cane crushing from December 16 with a target of producing over 200,000 tons of sugar, the issue of cheap smuggled sugar has created uncertainty regarding payment to farmers. Last year, the mills crushed 193,000 tons of sugarcane. Industry leaders expressed concern that the current situation, reminiscent of a decade ago, could lead to a crisis where mills are unable to pay farmers, despite the social and economic importance of the industry, which directly or indirectly supports approximately 8,000 families per mill. The government has yet to fix the price for sugarcane, which was Rs 585 per quintal last year.

Tomato Prices Drop by Up to 32% in One Week

Tomato prices have seen a significant reduction of up to 32 percent in the market over the past week. According to the price list released by the Kalimati Vegetable Market today, Tuesday, the average price of small Indian tomatoes dropped by 32 percent to Rs 85 per kilogram, compared to Rs 105 last week. Similarly, the average price of small local tomatoes fell by 19.05 percent, also reaching Rs 85 per kilogram. Prices for small tunnel-grown and small Terai-grown tomatoes have also decreased by 17.29 and 16 percent, respectively, reflecting increased supply.

Gold Price Drops Slightly Today; Silver Price Rises

The price of gold slightly decreased on Tuesday due to fluctuations in the international market and changes in demand. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold is set at Rs 253,300 per tola (11.66 grams) today. The price of silver, however, increased to Rs 3,545 per tola. This follows yesterday’s price of Rs 253,600 per tola for gold and Rs 3,535 per tola for silver.