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 44.86 Points Amid Tepid Investor Response to Monetary Policy Review:
The Nepal Stock Exchange (NEPSE) fell by 44.86 points (1.68%) last week after Nepal Rastra Bank’s first monetary policy review failed to boost investor sentiment. The index opened at 2,676.03 points and closed at 2,631.17 points over a four-day trading session, with a high of 2,694.89 and a low of 2,623.10, reflecting volatility of 71.79 points. Finance, manufacturing, and mutual funds gained, while life insurance (-3.44%) and banking (-3.04%) led declines. Himalayan Reinsurance saw the highest turnover at Rs 669.44 million, while Sagar Distillery surged 46.40%. Weekly turnover fell 33.79% to Rs 21.51 billion, and market capitalization declined by Rs 76 billion to Rs 4.417 trillion.

15 Local Governments in Madhesh Province Fail to Approve Budgets Five Months into Fiscal Year:
Fifteen local governments in Madhesh Province have failed to endorse their financial plans, nearly five months into the current fiscal year. By law, local bodies must announce their budgets by June 24 (Asar 10), but delays due to lack of political consensus have persisted. Last month, only 28 local bodies approved their budgets. Historically, budget delays are common; in FY 2024/25, 32 local governments nationwide missed deadlines, 25 from Madhesh. Without budget approval, municipalities cannot collect revenue, pay salaries, implement development programs, or access federal grants, raising the risk of arrears and stalled local development.

A Decade After Load-Shedding Ended, Nepali Industries Still Rely on Costly Generators:
A decade after Nepal ended load-shedding, industries are still not receiving reliable electricity, forcing them to depend heavily on costly generators. A CNI survey shows generator use has increased from 56% of industries in FY 2079/80 to 72% in FY 2081/82. Manufacturing firms, in particular, cannot rely on consistent power, limiting production capacity and discouraging new investment. Generator reliance adds roughly 11% to operating costs. Although Nepal now produces surplus electricity and exports power, weak transmission and distribution systems prevent industries from benefiting. Household supply has improved, but industrial energy reliability and quality remain inadequate, prolonging the energy crisis in Nepal’s productive sector.

Non-Renewed Life Insurance Policies Rise, Surrenders Decline in Nepal:
Life insurance companies in Nepal are seeing a rising number of non-renewed policies. According to the Nepal Insurance Authority, as of the first four months of the current fiscal year, 1,217,702 life insurance policies remained unrenewed, up 0.97% from the same period last year. The total value of these lapsed policies reached NPR 3.677 billion, a 4.69% increase year-on-year. Experts attribute this to low insurance awareness, economic difficulties, and policies misaligned with client needs. Meanwhile, policy surrenders declined by 18.14% in number and 6.27% in value, highlighting a growing gap between policy retention and coverage renewal.

NEPSE Falls This Week, But Four Newly Listed Stocks Surge Over 40%:
The NEPSE index fell 44.86 points this week, closing at 2,631.17—down 1.68% from the previous week. However, four newly listed companies delivered exceptional gains of over 40% despite the overall market decline. Sagar Distillery led with a 46.40% surge, followed closely by Jhapa Energy at 46.39%. Swastik Laghubitta rose 46.38%, and Srinagar Agritech increased 47.38%. All four firms had recently entered secondary trading after their IPOs, indicating strong post-listing momentum and heightened investor enthusiasm for newly listed stocks even as the broader market faced downward pressure.

Nepal’s Draft Law on Anticipatory Bail Stalled Amid Political Instability:
The draft law allowing anticipatory bail, designed to protect citizens from arbitrary arrests, remains stalled due to political instability in Nepal. Prepared by the Ministry of Law, Justice and Parliamentary Affairs, the bill aimed to let individuals apply for bail before arrest if there is insufficient evidence or risk of retaliatory detention. The proposal included amendments to the Criminal Procedure Code, enabling courts to grant immediate relief while safeguarding investigations. Frequent arrests of bankers, businesspeople, and officials without proper legal safeguards have raised concerns over misuse of police power. The bill’s delay leaves citizens vulnerable to preemptive detention and social harm.

38MW Tila Hydropower Project Moves Forward With NPR 7.57 Billion Investment in Jumla–Kalikot:
The 38.07MW Tila Hydropower Project, planned along the border of Jumla’s Tila Rural Municipality and Kalikot’s Tilagufa Municipality, is set to cost over NPR 7.57 billion. The first-phase public hearing on the Initial Environmental Examination (IEE) has been completed. With a design discharge of 52.51 cubic meters per second, the project will transmit electricity via a 30.2km, 132kV single-circuit line to the Jumla substation. The project requires 7.59 hectares of land, including 4.77 hectares of forest. Local communities are expected to benefit through jobs, royalties, community programs, and expanded business activities. A total of 34 households will be directly affected.

Bangladeshi Auditors Complete Loan Portfolio Review of Nepal’s 10 Largest Commercial Banks:
A Bangladeshi audit team from Howladar Yunus & Co., working with Nepal Rastra Bank, has completed a comprehensive loan portfolio review of Nepal’s ten largest commercial banks. The assessment—required under the IMF’s Extended Credit Facility—examined loan files, core banking systems, project implementation status, and repayment performance. Banks under review include Global IME, Nabil, Nepal Investment Mega, Rastriya Banijya, Kumari, Laxmi Sunrise, Prabhu, Himalayan, NMB, and NIC Asia. The team evaluated asset quality using about 25 indicators. The final report will be submitted shortly, and any irregularities found will be shared with banks for clarification and corrective response.

Nepal’s EV Market Turns Chaotic as Lack of Standards Fuels Unsafe Imports, Tax Evasion and Rising Accidents:
Nepal’s electric vehicle sector has grown rapidly over seven years, but the absence of government standards, fitness testing, and regulatory oversight has created a chaotic and risky market. EVs charge diesel-equivalent fares without tickets, force long charging delays, and often use low-quality parts. Importers under-report motor capacity to evade taxes, while Nepal lacks the machinery to verify specifications. Poor-quality Chinese EVs are linked to a surge in passenger-vehicle accidents, worsened by weak safety systems, poor build quality, and limited service centres. With no EV-specific standards, policy or regulatory framework, Nepal risks becoming a dumping ground for substandard vehicles.

Government Moves to Relax Strict Blacklisting Rules as Loan Defaulters Surge to Alarming Levels:
Nepal is preparing to make its blacklisting rules more flexible as loan defaults rise sharply amid a slowing economy. Finance Minister Rameshwor Khanal and Nepal Rastra Bank both acknowledge that the number of blacklisted borrowers—now nearly 200,000—has reached an abnormal level, restricting credit flow and worsening the investment climate. Industries argue that banks pushed struggling businesses into blacklisting instead of offering post-COVID restructuring, forcing many firms to shut down. Current rules blacklist borrowers for missed payments, remaining out of contact, or cheque bounces. The government believes easing the provision is essential to revive lending, reduce risk aversion, and support economic recovery.

Tax Department Clarifies: Full Tax Audits Continue, Now Prioritized by Risk:
The Inland Revenue Department has clarified that full tax audits have not been halted and continue under a risk-based system. An annual audit plan is already in place, and audits are being conducted according to legal provisions. High-risk entities such as multinational companies, banks, and financial institutions receive priority, along with firms nearing the four-year statutory audit deadline. About 2% of taxpayers are selected annually for full audits, which may occur anytime within four years under the Income Tax, VAT, and Excise Acts. Audits are triggered by discrepancies in filings, suspicious transactions, complex structures, or risk indicators, ensuring targeted and cost-effective oversight.

India Lifts Ban on High-Value Currency: Nepalis Allowed to Carry INR 200 and 500 Notes, But Use Still Restricted:
India has officially eased long-standing restrictions imposed after the 2016 demonetisation, allowing individuals to carry higher-denomination Indian currency notes once again. As per the Reserve Bank of India’s new directive, people can now carry and transport Indian notes above INR 100—such as 200 and 500—up to a limit of INR 25,000. However, these notes are still not permitted for general transactions. Nepal Rastra Bank has confirmed that Nepali citizens may hold and exchange such notes at banks and financial institutions. Despite this relaxation, high-value Indian notes cannot yet be used in Nepal’s markets for buying and selling goods.

NEA Automates Seven Substations, Moves Toward Fully Digitized Power Network:
The Nepal Electricity Authority (NEA) has integrated seven older grid substations—Panchkhal, Banepa, Patan, Lainchaur, Balaju, Chapali, and Bhaktapur—into an automated operating system, managed from a new central control room at Minbhawan. This is part of NEA’s broader plan to modernize the national power network, with the remaining six substations set for automation within two months. Using SCADA technology via the Syuchatar Load Dispatch Centre, automation aims to reduce outages, enable real-time load management, cut operational costs, and support smart grid development. Financed by an ADB concessional loan at Rs 610 million, full automation of all 71 substations is expected within 18 months.

Long-Delayed Dudhuwa Canal Construction Resumes, Promises Year-Round Irrigation for 16,000 Hectares:
Construction of the long-delayed Dudhuwa Canal under the Sikta Irrigation Project has resumed, aiming to provide year-round irrigation to nearly 16,000 hectares of farmland. The project involves two packages: the first builds structures and 24 km of canal to irrigate 7,271 hectares in Janaki and Khajura, while the second, managed by Ramechhap Sherpa Construction, covers 18 km toward Hirminiya, serving 8,783 hectares. With a total investment exceeding Rs 1.12 billion, the canal is expected to boost paddy, wheat, maize, and vegetable production. Local farmers hope the project will finally resolve chronic water shortages, urging strict government monitoring to avoid past delays and collapses.

Benikot Farmers Earn Over Rs 20 Million From Record Orange Sales in Tanahun:
Farmers in Benikot, Byas Municipality-13, have earned more than Rs 20 million from orange sales this year, boosted by strong yields, growing market demand, and traders purchasing directly from orchards. Farmer-teacher Fal Bahadur Thapa alone sold oranges worth Rs 1.65 million, while others earned between Rs 210,000 and Rs 400,000. Over 600 farmers are benefiting from the district’s expanding orange-growing campaign, supported by government funds for orchard management and new plantations. With improved disease control and better orchard practices, Tanahun sold oranges worth Rs 425 million last year. Benikot oranges are increasingly popular nationwide, solidifying Tanahun as a rising provincial “orange hub.”

Tourists Continue to Brave Freezing Winter to Cross Thorong La Pass:
Despite freezing temperatures and snow-covered trails, Thorong La Pass (5,416m) on the Annapurna Circuit continues to attract foreign trekkers in winter. Police data show 201 tourists entered Mustang via the pass on November 17 and 98 more by December 4. While numbers have declined, authorities say a steady flow of visitors persists. Improved road access has shortened the traditional trek, though tourism leaders urge protection of classic routes. Thorong La remains the busiest entry to Mustang, drawing over 13,000 trekkers annually. Even on December 4, more than 2,500 travelers visited Mustang, with the Muktinath Temple alone receiving 2,500 visitors.

Nepal Marks World Soil Day, Calls for Stronger Action to Protect Urban and Rural Soil Health:
Nepal celebrated the 12th World Soil Day on Friday with national-level events themed “Healthy Soils for Healthy Cities.” Organisations including the Department of Agriculture, NARC, FAO, and the Nepalese Society of Soil Science held programmes in Khumaltar, attended by Minister for Agriculture Dr. Madan Prasad Pariyar. The Minister stressed the urgency of sustainable soil management, warning that excessive chemicals, rapid urbanisation, and industrialisation are degrading soil quality. He highlighted ongoing efforts such as updating the digital soil map and running mobile soil health camps. Farmers, experts, and journalists were honoured for promoting soil awareness, as officials called for collective action to safeguard soil in both rural and urban areas.

From Struggle to Success: Purna Bahadur Chaudhary Becomes Model Farmer in Tulsipur:
Purna Bahadur Chaudhary of Matera, Tulsipur Sub-Metropolitan City-14, has transformed his village through commercial vegetable farming, earning nearly Rs 1.4 million annually. Starting 25 years ago on 12 katthas, he now cultivates vegetables and rice on 2 bighas 15 katthas with the help of a lift irrigation system from the Babai River. His success inspired 30 other families to adopt vegetable farming, creating local employment and reducing youth migration. Despite challenges like low prices and market access, Chaudhary emphasizes the need for government support in irrigation, seeds, and market management. His story exemplifies perseverance, community impact, and agricultural innovation.

Aaldanda Emerges as Key Stopover on Karbakeli Eco Trek in Myagdi:
Aaldanda in Annapurna Rural Municipality–8, Myagdi, is rapidly gaining popularity among trekkers on the Karbakeli Eco Trek, serving as a prime stopover toward Ghorepani and Poon Hill. At an altitude of 2,620 metres, the area offers stunning views of peaks including Dhaulagiri, Annapurna, Machhapuchhre, and Manaslu, surrounded by rhododendron forests and rich biodiversity. Tourism entrepreneurs report growing domestic and international arrivals, with Korean trekkers among recent visitors. Investments like the Himalayan View Guesthouse enhance accommodation options. Aaldanda’s natural beauty and strategic location make it an essential attraction along the Annapurna–Dhaulagiri Community Ecological Trail, connecting destinations such as Mohare Danda, Kalidaha, and Tikot.