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:

Election Commission Debates Six Parties Seeking Registration with Unpaid Fines

The Election Commission (EC) is debating whether to register six political parties for the upcoming March 5, 2026, election because they have failed to pay fines for not submitting their income and expenditure details for the fiscal year 2023/24. These parties, including Akhand Sudurpaschim Party Nepal and Rashtrabadi Yuwa Morcha, have filed registration applications despite being penalized. While the deadline to submit details for the last fiscal year is mid-February 2026, the EC must decide on the applications of these non-compliant parties before proceeding with the election preparations.

IRD Clarifies Full Tax Audits Are Still Regular Practice

The Inland Revenue Department (IRD) has clarified that the practice of conducting full tax audits for large taxpayers is continuing regularly. The clarification follows complaints after Finance Minister Rameshore Khanal stated that full audits would only be conducted when necessary based on risk. The IRD confirmed that full tax audits are routinely conducted for banks, financial institutions, and multinational companies, as well as files where the statute of limitations expires after four years or where documents have been requested under Section 83 of the Income Tax Act, 2002.

Tax Refund Gap Widens: Only 21% of Claims Approved

The gap between tax refund claims made by taxpayers and the amount approved by the government is widening. In the last fiscal year, claims totaled Rs 23.4 billion, but only Rs 4.84 billion was approved, representing just 21 percent of the claims. This is a significant drop from previous years when up to 80 percent of claims were approved. Businesses and tax experts complain that despite legal improvements, the process is increasingly difficult, with the IRD demanding unnecessary documents, especially for construction sector VAT credits.

India Lifts Ban on High-Denomination Notes in Nepal

The Reserve Bank of India (RBI) has removed the restriction on the transaction of Indian currency notes higher than Rs 100 in Nepal and Bhutan. According to a notice published in the Indian Central Gazette, travelers can now carry high-denomination notes up to a total limit of Rs 25,000. This decision reverses the 2016 demonetization policy that banned the use of large notes in Nepal. This move is expected to facilitate payments and transactions for tourists and allow Nepalese returning from India to exchange large notes, easing border trade and currency flow.

Government Plans to Allow PPA for Up to 10 MW Projects

The government is preparing to allow Power Purchase Agreements (PPAs) for hydropower projects of up to 10 megawatts, after a long halt. The proposal, forwarded by the Nepal Electricity Authority (NEA) Board, is awaiting Cabinet approval. Ganesh Karki, President of the Independent Power Producers’ Association, Nepal (IPPAN), welcomed the move but urged the government to expand PPAs to projects above 10 megawatts. He emphasized that limiting PPAs will obstruct the goal of exporting 10,000 megawatts to India, a crucial long-term vision for the country’s energy sector.

Karnali Province Bans Meeting Allowances During Office Hours

The Karnali Provincial Government has banned the payment of meeting allowances during official office hours (10:00 AM to 5:00 PM) to cut public expenditure and enforce financial discipline. Under the new “Karnali Province Expenditure Standards, 2082,” meals and snacks for participants are capped at Rs 300 per person. The new standards also set maximum vehicle purchase costs, with the Chief Minister and Speaker limited to vehicles costing Rs 15 million, and impose strict limits on fuel and communication expenses for all officials.

Karnali Mandates Project Bank for Projects Over Rs 5 Million

The Karnali Provincial Government has instructed district-level offices and provincial assembly members to submit proposals for the next fiscal year, 2026/27, by December 7. Chief Minister Yam Lal Kandel stated that all projects above Rs 5 million must now be included in the Project Bank to improve transparency and halt the practice of arbitrary recommendations. This is part of the implementation of the “Karnali Province Project Proposal and Selection Procedure 2025” aimed at ensuring that development budgets are spent effectively and without duplication. This move ensures responsible spending.

Govt Eases Land Use for Galchi-Rasuwagadhi Road Project

The Cabinet has made key decisions to facilitate the construction of the Galchi–Trishuli–Mailung–Syaphrubesi–Rasuwagadhi road section, which is being expanded with grant assistance from the Chinese government. The government decided to grant temporary use of land within the Langtang National Park for building temporary structures and to exempt duties on construction materials such as stones, gravel, and sand. This move is expected to speed up the road reconstruction, which is critical for restoring full-capacity operation at the Rasuwagadhi border crossing.

Petroleum Imports Rise by 2.01 Percent Via Kakarvitta

Imports of petroleum products through the eastern Kakarvitta border increased by 2.01 percent in the first four months of the current fiscal year 2025/26. A total of Rs 6.27 billion worth of petrol, diesel, and gas was imported, an increase of Rs 119.2 million compared to the same period last year. This rise in imports also led to a 2.90 percent increase in revenue collected from petroleum products, totaling Rs 2.968 billion for the period.

Tea Exports to India Drop 37 Percent Via Kakarvitta Border

Tea exports to India via the eastern Kakarvitta border dropped by 37 percent in the first four months of the current fiscal year 2025/26 compared to the same period last year. Exports decreased from Rs 2.204 billion in the previous fiscal year to Rs 1.373 billion this year, a decrease of Rs 831 million. Officials attribute the decline to labor movements, increased domestic consumption, and changes in India’s import policies, stressing the need to diversify markets to China, Pakistan, Russia, and Europe.

Traders Warn of Unofficial Blockade Amid China Border Uncertainty

Traders are worried about an “unofficial blockade” due to persistent uncertainty and delays at the Chinese border points. The flood-damaged Rasuwagadhi border is waiting for the Bailey bridge to open, while the Tatopani border is operating below capacity. The lack of efficient customs clearance is causing goods, including over 300 containers of quickly perishable fruits, to rot on the road. Traders have urged the government to expedite the process, especially given that imports from China in the first four months of the current fiscal year reached Rs 132.56 billion.

Morang Substation Nears Completion to Solve Voltage Issues

The construction of the 132/33 kV Keraun Substation in Kanepokhari Rural Municipality-2, Keraun West, Morang, is in its final phase, having achieved 91 percent physical progress. The Rs 850 million project, funded by the Asian Development Bank (ADB), is expected to permanently solve the low-voltage problems faced by 61,000 customers in southeastern Morang for over 30 years. Although the final deadline is January 1, 2026, officials expect 95 percent of the work to be technically complete by then, with full completion requiring an additional month.

Contract Canceled for Sunkoshi-Marin Diversion Dam Construction

The construction contract for the Sunkoshi-Marin Diversion Multipurpose Project’s dam and powerhouse was terminated with Patel-Raman JV in late 2025. The company achieved only 11 percent physical progress despite using about 61 percent of the allotted time, leading the Department of Water Resources to cancel the Rs 14.75 billion contract. The government is proceeding to confiscate the company’s Rs 2.40 billion bank guarantee. The tunnel is complete, but dam site work has ceased, leaving approximately 500 workers unemployed.

Traffic Police Mandate Departure from Bus Parks Only

The Valley Traffic Police Office has strictly enforced a new rule requiring all long-distance public transport vehicles to depart exclusively from designated bus parks in the Kathmandu Valley. Spokesperson Naresh Raj Subedi explained that the measure is aimed at controlling severe traffic congestion, particularly during rush hour, which is often caused by long-distance vehicles illegally picking up and dropping off passengers on busy roads. The office is also reviewing route permits and plans to intensify awareness classes for drivers who violate rules like speeding or driving under the influence.

Industries Demand Immediate Import of Chickpeas and Black Pepper

Industrialists are demanding that the government immediately allow the import of chickpeas and black pepper for use as raw materials, citing severe shortages. While the government previously restricted their import to conserve foreign currency after the Covid pandemic, a specific quota is usually announced annually for industrial use. Manufacturers of noodles, spices, and gutkha rely on these raw materials, and the lack of imports has reportedly led to increased smuggling. The Department of Commerce is responsible for recommending the required quantity to the Ministry of Industry for approval.

Cardamom Price Drops to Rs 92,000

The market price of cardamom has continuously declined, dropping to Rs 92,000 per man (40 kg) on Thursday in the Phungling market. This marks a decrease of Rs 1,000 in one day. The price had peaked at Rs 102,000 per man on November 9 but quickly began to fall due to fluctuating international demand and pricing. In the first quarter of the current fiscal year 2025/26, at least 1,072 metric tons of cardamom worth Rs 1.679 billion were exported to India via the Kakarvitta border.

FMTC Dang Buys Rs 1.44 Crore in Paddy

The Food Management and Trading Company (FMTC) purchased 4,183 quintals and 20 kg of paddy from 212 farmers in three local levels of Dang. The total procurement amounted to Rs 14.4 million. This purchase, made between October 24 and the first week of November 9, fell short of the 5,000 quintal quota. Officials cited that the quota was missed because the central government mandated purchasing coarse rice, while most farmers in the region cultivated finer varieties, resulting in a shortfall of 816 quintals.

Organic Farmer Cultivates Sunflower on 2.5 Bigha in Chitwan

Organic farmer Chandra Prasad Adhikari of Bharatpur Metropolitan City–15, Shreepur, has planted sunflowers on 16931.44 square meters of land using 100 percent organic methods. Adhikari expects an estimated harvest of 30 quintals this year. During the previous cultivation two years ago, the oil sold for Rs 800 per liter and the seeds for Rs 500 per kg. He spent five days using ten laborers daily for the planting. He is also growing organic carrots and has created a “buffer zone” using Rajma beans to protect the sunflower from external contaminants.

Commercial Coconut Farming Begins in Jhapa

Commercial coconut farming has been initiated in Jhapa by Rabi Nepal of Mechinagar Municipality-4. Nepal has planted 300 saplings on one bigha of land as a trial, making him the first farmer in Koshi Province to start large-scale commercial coconut production. He started this as an alternative to rice farming due to disturbances from wild elephants. Coconut trees begin yielding fruit about nine years after planting. One existing tree already earns over Rs 17,000 annually. The raw fruit is highly sought after, selling for Rs 90 to Rs 100 at the farm.

Citizens Bank Wins ‘Bank of the Year’ Award Again

Citizens Bank International has been awarded the prestigious “Bank of the Year” award for the second consecutive time, following its win in 2024. CEO Ganesh Raj Neupane accepted the award at a special ceremony in London on December 4. The selection process evaluates technical upgrades, new product launches, financial inclusion initiatives, and contributions to sustainability. Citizens Bank was the only Nepali bank to receive the award among institutions from 132 countries, reflecting the confidence of its customers, shareholders, and employees.

Mustang Sees 10.61 Percent Rise in Foreign Tourist Arrivals

Mustang recorded a 10.61 percent increase in foreign tourist arrivals in the first eleven months (January to November) of 2025 compared to the same period in 2024. A total of 150,130 foreign tourists visited Mustang by November 2025, an increase of 14,411 visitors. The Annapurna Conservation Area Project (ACAP) noted that tourist numbers were negatively impacted in August and September by the Gen Z protest and adverse weather. Of the total, 123,253 were from SAARC nations, and 26,877 were from other countries.

Tourists Decline at Begnas Lake Amid Road Construction

Tourist arrivals, both domestic and foreign, at Begnas Lake in Pokhara have been declining over the last decade, particularly since the 2015 earthquake. Local boat operators are deeply concerned, stating that nearly 30 percent of them have shifted to other professions due to reduced income. The decrease is also attributed to the ongoing reconstruction of the Mugling–Pokhara and Talchok–Begnas roads, according to boat operator Somraj Kandel. The lake, which is 373 hectares wide, has 280 boats operating, but operators often have to wait a week for a trip, highlighting the severity of the business decline.

Ratna Park to Offer Free WiFi for Visitors

The renovated Ratna Park (Shankhadhar Udyan) in Kathmandu is set to offer free WiFi access to the public. The Kathmandu Metropolitan City (KMC) has begun installing six Nepal Telecom routers to provide 500 Mbps capacity internet service throughout the park by the end of mid-December. Entry fees range from Rs 20 for students to Rs 100 for foreign tourists. The park, which charges fees for entry and photo shoots, currently generates between Rs 5 million and Rs 10 million in annual revenue for the KMC.

Prabhu Management Founder and 4 Others Charged with Fraud

The Kathmandu District Government Attorney’s Office has filed a case against Founder Chairman Devi Prakash Bhattachan of Prabhu Management Private Limited and four individuals, along with two companies, for fraud, criminal breach of trust, and Hundi (illegal remittance). The case alleges a failure to pay back some Rs 65.2 million in remittance and deposit funds to 38 cooperatives. The maximum sentence for the fraud charge is seven years imprisonment. Separately, Rajendra Shakya, Chairman of the Guna Group, was arrested for a banking offense linked to the Prabhu Group.

Gold Price Drops Rs 800, Silver Also Declines

The price of gold in the local market dropped by Rs 800 per tola (11.66 grams) on Thursday. The price for gold is now set at Rs 253,300 per tola, down from Rs 254,100 on Wednesday. Silver also saw a slight decline, decreasing by Rs 30 per tola to trade at Rs 3,625 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, both precious metals experienced price volatility, although the drop brings the gold price back to the rate recorded two days earlier.