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 Increases Slightly as Market Turnover Reaches Rs 4.5 Billion

The Nepal Stock Exchange (NEPSE) index rose by 5.70 points on Wednesday, closing at 2,625.70 points. The daily turnover saw a significant increase, reaching Rs 4.5 billion compared to Rs 3.44 billion on Tuesday. Out of the listed companies, 143 saw a rise in share prices, while 104 declined and 11 remained unchanged. The finance sector led the gains with a 1.75 percent increase. Notable performers included Swastik Laghubitta and SY Panel, both hitting the 10 percent upper circuit, while Barahi Hydropower faced a 10 percent drop.

Government and ADB Sign Loan for Public Finance Reform

The government and the Asian Development Bank signed a USD 100 million concessional loan agreement for the second phase of the Public Financial Management and Devolved Service Delivery Program. Finance Secretary Dr. Ghanshyam Upadhyay and Resident Representative Arnaud Cauchois finalized the deal at the Ministry of Finance on Wednesday. The loan features a 24-year term with an eight-year grace period and an interest rate starting at 1 percent. This funding aims to strengthen federalism, improve revenue mobilization, and enhance the transparency and efficiency of public spending across federal, provincial, and local levels of government.

Government Scraps Postal Stamp Requirement for Revenue Collection

The government has decided to remove the requirement of using postal stamps as revenue stamps for authenticating documents, except where mandatory by law. Minister Jagdish Kharel announced that the cabinet meeting on Monday finalized this decision to simplify service delivery. Additionally, a high-level political dialogue committee was formed under Law Minister Anil Kumar Sinha. The government also accepted a Rs 12.38 billion concessional loan from the Asian Development Bank (ADB) and approved the transfer of several Armed Police Force Additional Inspector Generals. Furthermore, organizational surveys for the Ministry of Youth and Sports were granted preliminary approval.

Stakeholders Urge Policy Reforms to Boost FDI

Experts and stakeholders have emphasized the need for procedural reforms to increase Foreign Direct Investment (FDI) in Nepal. While investment commitments have reached Rs 674.833 billion for 7,677 projects, actual inflows remain low. In the first five months of the current fiscal year, commitments reached Rs 38.596 billion, primarily in the agriculture and tourism sectors. Virendra Raj Pandey, president of the Confederation of Nepalese Industries, said that political stability and a one-door system are essential. Data shows India remains the top investor with Rs 176 billion, followed by China and Singapore.

Birgunj Customs Collects Rs 96.38 Billion in Five Months

The Birgunj Customs Office collected Rs 96.38 billion in revenue during the first five months of the current fiscal year. This marks a 14 percent increase compared to the Rs 84.37 collected during the same period last year. From November 17 to December 15, it saw the highest collection of Rs 20.80 billion, achieving 98 percent of its monthly target. The office has already met 87 percent of the annual target of Rs 273.39 billion set by the Department of Customs.

Cabinet Allows Carrying INR 200 and 500 Notes up to Rs 25,000

A cabinet meeting chaired by Minister Jagdish Kharel on Monday decided to allow Nepali and Indian citizens to carry Indian currency notes of 200 and 500 denominations up to a limit of Rs 25,000. Previously restricted, this move facilitates cross-border travel and trade. The government also scrapped the use of postal stamps for revenue purposes on official documents. Furthermore, a USD 100 million loan from the Asian Development Bank was accepted. Other decisions included the appointment of Dr. Prakash Kumar Shrestha as Vice Chairman of the National Planning Commission and the formation of a dialogue committee under Anil Kumar Sinha.

5% Increase in Youth Migrating for Foreign Employment

In the first five months of the current fiscal year, 339,611 Nepali youths left for foreign employment, a 5 percent increase compared to last year. Data from the Department of Foreign Employment suggests that over 800,000 individuals may migrate by the end of the year. Over the last five years, nearly 3.4 million workers have sought jobs abroad, averaging 634,000 annually. The surge is attributed to worker-friendly laws in destination countries and digitized online labor permit services. Historically, the fiscal year 2024/25 saw the highest number of departures, with over 839,000 labor permits issued.

Minister Ghising Monitors Infrastructure Projects in Bardiya

Minister Kulman Ghising arrived in Bardiya for a two-day monitoring visit and to lay the foundation stone for a suspension bridge. On Wednesday, Ghising inspected the collapsed Jabdi Ghat bridge, Sattighat bridge, and various irrigation and embankment projects along the Karnali River. His itinerary includes a public interaction at Thakurdwara on Thursday to discuss wildlife issues and local irrigation canals. Accompanied by Chief District Officer Gogan Bahadur Hamal, the minister’s visit aims to evaluate ongoing development works and address infrastructure challenges facing the residents of the Bardiya district.

Finance Minister Encourages Chinese Investment During Economic Workshop

Finance Minister Rameshore Khanal urged Chinese investors to confidently mobilize capital in Nepal during an economic cooperation workshop on Tuesday. Highlighting the government’s commitment to economic reforms, Khanal emphasized the need for identifying new sectors for bilateral cooperation. Chinese Ambassador Chen Song noted that Chinese investors are increasingly interested in Nepal’s industrial development, energy, and infrastructure sectors. Song reiterated China’s support for Nepal’s growth, stressing that a favorable environment and political stability are key to strengthening the multifaceted economic relationship between the two neighboring nations during the current fiscal period.

Finance Ministry Prohibits Transport Fees on Goods in Transit

The Ministry of Finance has urged provincial and local levels to stop collecting fees on the transportation of goods passing through their jurisdictions. Circulars were issued via the Office of the Prime Minister and the Ministry of Federal Affairs to ensure that local farmers and businesses are not negatively impacted. The ministry reminded authorities that collecting such taxes on goods in transit from other districts violates the Constitution of Nepal. This decision, made on December 9, aims to maintain a barrier-free national market and prevent illegal fee collection on agricultural produce by local governments.

CIAA Investigates Massive Financial Irregularities at Prithvi Chandra Hospital

The Commission for the Investigation of Abuse of Authority has launched an investigation into financial irregularities worth millions at Prithvi Chandra District Hospital in Nawalparasi (west of Bardaghat Susta). The commission’s Butwal office requested details following reports of corruption involving the former medical superintendent and other staff. Allegations include Rs 20 million paid for non-functional lifts in a Rs 14 billion project and a Rs 6 million X-ray machine that was never used. Furthermore, Rs 4.1 million in health insurance claims remained unrequested. Civil society has demanded strict action against those responsible for the significant loss of public funds.

Jumla Exports Apples Worth Over Rs 412.9 Million This Year

Jumla district has exported apples worth Rs 412.9 million as of the first week of December. The Agriculture Development Office reported that 5,591 metric tons of apples were sent out, with local varieties selling for Rs 50 to 65 per kilogram. However, total production dropped from 20,512 metric tons last year to 18,245 metric tons due to hailstorms and pests. Despite the decrease, the area under apple cultivation has grown to 4,497 hectares, with Italian Fuji apples fetching higher prices of over Rs 175 per kilogram in the market.

Kamdhenu Dairy Cooperative Embroiled in Controversy Over Irregularities

The Kamdhenu Dairy Development Cooperative in Itahari is facing internal turmoil following allegations of financial irregularities and the suicide of an employee, Prem Mishra. Former Chairman Krishna Prasad Adhikari and others accused current Chairman Yadap Dhakal of monopolizing the institution and abusing grants. Mishra reportedly left a suicide note blaming the management for excessive pressure over a Rs 750,000 debt. While Dhakal claims to have provided Rs 500,000 to the family on humanitarian grounds, critics allege it was an attempt to suppress the investigation. The Jhapa District Police are currently conducting a detailed inquiry into the matter.

Morang Industrialists Demand Reliable Power Supply for Winter

A delegation from the Chamber of Industries Morang, led by President Nand Kishor Rathi, met with Finance Minister Rameshore Prasad Khanal and other officials to demand a reliable electricity supply for the upcoming winter season. The group urged the government to complete the Barju substation and repair deteriorating transmission lines in the Sunsari to Morang to Katahari corridor. They also presented an 8-point suggestion list, including amending the Customs Act 2025 and providing cash incentives for exports. Ministers responded positively, promising to address immediate issues and note policy suggestions for future implementation.

Kohalpur to Surkhet Transmission Line Worth Rs 700 Million Nears Completion

The construction of the Kohalpur to Surkhet 132 kV transmission line has reached its final stages, achieving 99 percent physical progress. Project Chief Ravi Kumar Chaudhary stated that 161 out of 162 towers are finished, with stringing works at Baniyabhar expected to conclude within a week. The Rs 700 million project, contracted to RS Infra Projects in the fiscal year 2019/20, faced delays due to difficult terrain and local disputes in Banke and Bardia. Once operational within the next month, the line is expected to solve the long-standing irregular power supply issues faced by residents in Karnali.

India and Nepal Host Startup Roundtable in Janakpurdham

A roundtable discussion on India-Nepal cooperation in technology and startups was held in Janakpurdham. Organized by the Consulate General of India in Birgunj and the Nepal Young Entrepreneurs Forum, the event featured over 40 representatives. Consul General Devi Sahai Meena highlighted that India’s expertise in artificial intelligence and information technology could significantly benefit Nepali entrepreneurs. The initiative aims to transform Madhesh Province into a startup hub by fostering knowledge exchange, investment partnerships, and technical collaboration between young entrepreneurs and small- to medium-sized enterprises from both neighboring nations.

Prices of Onions and Potatoes Rise in Market

The Kalimati Fruits and Vegetables Market Development Board reported a rise in the prices of dry onions and potatoes on Wednesday. The wholesale price of dry onions reached an average of Rs 50 per kilogram, up from Rs 49 on Tuesday. Similarly, local red potatoes saw a price hike, trading at an average of Rs 39 compared to Rs 36 the previous day. Indian red potatoes remained relatively stable at an average of Rs 29. Market authorities noted that these fluctuations are primarily driven by daily supply volumes arriving from various agricultural districts and cross-border trade.

Shikhar Insurance Announces 6.31 Percent Dividend for Shareholders

The board of directors of Shikhar Insurance has announced a 6.3158 percent dividend from the profits of the previous fiscal year. This includes 6 percent bonus shares and a 0.3158 percent cash dividend for tax purposes, totaling approximately Rs 184.6 million. The distribution is subject to approval from the Nepal Insurance Authority and the upcoming annual general meeting. Currently, the company’s shares are trading at around Rs 645 per unit. This announcement reflects the company’s stable financial position despite the challenging economic environment and fluctuating market conditions in the insurance sector of Nepal.

Soaltee Hotel Approves Dividends

The 51st Annual General Meeting of Soaltee Hotel Limited successfully concluded with the appointment of Dinesh Bahadur Bista as the Executive Chairman. The assembly approved a 16.57 percent cash dividend and 15 percent bonus shares for shareholders from the profits of the fiscal year 2024/25. A new 9-member board was formed, including representatives from Soaltee Enterprises Private Limited, Nepal Airlines Corporation, and the general public. Institutional directors include Ravi Bhakta Shrestha and Rajesh Kazi Shrestha, while Prakash Bikram Khatri and Shashi Raj Pandey were elected to represent public shareholders.

Gold and Silver Prices Surge in the Domestic Market

Gold and silver prices continued their upward trend on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 700 to reach Rs 259,700 per tola (11.66 grams). Similarly, silver prices increased by Rs 170, bringing the cost to Rs 4,055 per tola. In the international market, gold is currently trading at USD 4,330 per ounce, while silver is priced at USD 65 per ounce. This domestic surge follows Tuesday’s rates, where gold was priced at Rs 259,000.