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 Rises 3.27 Points After 3-Day Slide

After three consecutive days of decline, the share market rebounded on Tuesday, with the Nepal Stock Exchange (NEPSE) index climbing 3.27 points to 2,584. The day’s low was 2,569 at 12:28 pm. Trading volume slightly dipped to Rs 3.42 billion from the previous day’s Rs 3.51 billion. Out of all listed companies, 134 saw price gains, 117 declined, and eight remained unchanged. The Other group index led gains at 1.28 percent, while the Hydro, Production & Processing, and Microfinance sectors also rose modestly. Top performers included SY Panel (7.01%), Gurans Laghubitta (6.01%), and Sayapatri Hydropower (5.96%), whereas Citizen Life Insurance (5.97%) and CYC Laghubitta (5.87%) posted losses.

Exports Surge in First Five Months of FY 2025/26

Exports increased by 58.17 percent in the first five months of the current fiscal year 2025/26, covering July 17 to December 15, according to data released by the Department of Customs. Total exports reached Rs 116.509, compared to Rs 73.659 billion during the same period last year. The rise was mainly driven by soybean oil exports worth Rs 46.55 billion, despite imports of raw soybean oil worth Rs 4.697 trillion.

Imports and Trade Deficit Rise Despite Export Growth

Imports rose by 15.83 percent in the first five months of the current fiscal year 2025/26, reaching Rs 766.189 billion, up from Rs 661.488 billion last year. Despite growth in exports, the trade deficit increased by 10.52 percent to Rs 649.681 billion. Total foreign trade expanded by 20 percent, reaching Rs 882.698 billion, according to customs data of the Department of Customs.

Public Debt Rises to Rs 27.88 Trillion in Five Months

Nepal’s public debt increased by Rs 114.48 billion in the first five months of the current fiscal year, reaching Rs 27.885 trillion. According to the Public Debt Management Office, the government borrowed Rs 175.12 billion in internal and external loans by December 15, while Rs 167.01 billion was spent on principal and interest payments. Internal debt rose to Rs 12.678 trillion, and external debt reached Rs 14.205 trillion, representing 45.66 percent of GDP. The data indicates that borrowing slightly outpaced repayments during this period, continuing the trend of gradual public debt accumulation.

Electricity Regulatory Commission Proposes Flexible PPA Rates

The Electricity Regulatory Commission has proposed project-based electricity purchase rates for reservoir-based hydropower projects through a draft directive 2025. The proposal allows flexible PPA rates based on depreciation, interest, operation costs, returns, and royalties to attract private investment. Commission Chair Dr. Ram Prasad Dhital said the provision could make projects such as West Seti and Budhi Gandaki more attractive. Currently, uniform seasonal rates apply at Rs 4.80 per unit in the wet season and Rs 8.40 per unit in the dry season.

Gandaki Province Cancels Registration of 10 Inactive Cooperatives

The Cooperative Registrar’s Office under the Gandaki Province Government has canceled the registration of 10 cooperative institutions from Myagdi, Parbat, and Syangja districts. The decision was made public on Tuesday through an official notice. Registrar Bhesraj Rizal said the action was taken under the Gandaki Province Cooperative Act, 2019, which allows cancellation of cooperatives inactive for two consecutive years. In Galyang Municipality, eight cooperatives were deregistered. The Consumer Cooperative Union Limited in Beni Municipality 7 and the Deupur Beekeeping Farmers Cooperative Limited in Modi Rural Municipality 2 were also canceled. Directors remain liable for obligations, and a 35-day notice had been issued on June 29 before cancellation.

Sugar Mills Resume Operations in Madhesh Province

Three sugar mills have resumed operations in Madhesh Province, including Indu Shankar Sugar Industry and Mahalaxmi Sugar Industry in Sarlahi and Everest Sugar Mill in Mahottari. Indu Shankar Sugar Industry began crushing, with a daily capacity of 35,000 quintals. According to Bimal Chandra Thakur, Everest Sugar Mill is facing a shortage of sugarcane, receiving only 15,000 quintals against the required 30,000 quintals per day.

Birgunj Customs Imports Rise in Five Months

Goods worth Rs 359 billion were imported through the Birgunj Customs Office in the first 5 months of the current fiscal year. Information Officer Udaya Singh Bista stated that imports increased by 17 percent compared to the same period last fiscal year, when imports totaled Rs 306 billion. Revenue collection also rose significantly. During the review period, petroleum products worth Rs 72.28 billion and iron and iron goods worth Rs 31.65 billion were imported. Machinery goods worth Rs 24.60 billion and soybean oil worth Rs 22.85 billion were also imported.

Imports Increase and Exports Decline at Kakarbhitta

Imports worth Rs 20.144 billion were recorded through Kakarbhitta by December 15 of the current fiscal year, marking an increase of 7.57 percent, according to Mechi Customs Office information officer Ishwar Kumar Humagain. Exports during the same period declined by 6.65 percent, totaling Rs 10.715 billion. Total revenue collection during the review period reached Rs 6.82 billion, the customs office reported.

Fog Halts Nepalgunj Flights as Visibility Drops

Dense fog and cold waves disrupted all flights at Nepalgunj Airport on Tuesday. Visibility plummeted to between 400 and 600 meters, far below the 1,600 meters required for landing and 1,000 meters for takeoff. No flights to Kathmandu or hilly districts were possible until late afternoon. Major carriers, including Buddha Air, Shree Airlines, and Yeti Airlines, were forced to delay or cancel scheduled trips. This weather pattern mirrors conditions from the previous day. Passengers remained stranded at the terminal waiting for clearing skies, as the thick haze paralyzed regional air travel.

EV Imports Decline as Northern Borders Remain Closed

Electric vehicle imports declined as northern border points with China remain largely closed. Kerung and Korala are shut, while Tatopani operates partially. In the first five months of the fiscal year, EV imports fell by 24.51 percent. Nepal imported 4,286 EVs worth Rs 10.44 billion, down from 5,536 units worth Rs 13.83 billion last year. Most EVs were imported from China, according to the Department of Customs.

Fuel Vehicle Imports Rise Amid EV Supply Disruptions

As EV imports declined, imports of fuel-run vehicles increased sharply. Nepal imported 4,109 fuel vehicles in the first five months, a 55 percent rise from 2,649 units last year. Import value rose by 42.67 percent to Rs 5.45 billion. Prasanna Panta, chief executive officer of MAW Vriddhi Motors, said floods delayed EV shipments via Kerung and Tatopani. He said sales remain stable as shipments resume through Tatopani.

Flood Damage Disrupts Northern Trade Routes

A flash flood in July swept away the Miteri Bridge at Kerung, disrupting trade with China. Construction of a temporary Bailey bridge has been delayed. Goods ordered before the Teej festival remain stuck at the border. Traders said the Korala border point, opened in September, was later closed due to freezing weather. Ram Hari Karki, president of the Nepal Trans Himalayan Border Commerce Association, said trade through northern routes has nearly halted.

FTMC Completes Paddy Procurement from Banke

The Food Management and Trading Company (FMTC) main branch office in Nepalgunj has completed its paddy procurement quota for this year by purchasing 20,294.20 quintals of paddy from farmers in Banke district. The allocated quota included 15,000 quintals of coarse paddy and 5,000 quintals of medium paddy. Procurement began on November 9. According to office chief Ramsharan Lamichhane, paddy worth Rs 71 million was purchased at government-fixed minimum support prices. Out of 721 registered farmers, only 536 sold paddy, with a maximum limit of 40 quintals per farmer.

Salpa Development Bank to Issue IPO from December 31

Salpa Development Bank will issue its IPO to the public starting December 31. Established in 2012, the bank has received approval to issue some 1.7 million shares worth Rs 172.3 million, representing 33 percent of its paid-up capital. Applications for some 1.4 million shares will be open until January 4, 2026. The share price has been fixed at Rs 100 per share.

Mero Microfinance Announces 5 Percent Dividend

Mero Microfinance has announced dividend distribution to shareholders from profits of the last fiscal year. A board meeting held on Tuesday decided to distribute a 5 percent dividend. The dividend includes 4.75 percent bonus shares and a 0.25 percent cash dividend for tax purposes. The proposed dividend will be distributed after approval from Nepal Rastra Bank and endorsement by the company’s upcoming annual general meeting, according to the company’s statement.

NLG Insurance Announces 7 Percent Dividend for Shareholders

NLG Insurance has announced a 7 percent dividend for its shareholders. The decision was made by the company’s board of directors. The dividend includes 4 percent bonus shares and 3 percent cash dividend. The company’s current paid-up capital stands at Rs 2.56 billion. In the previous year, the company had distributed 2.50 percent bonus shares and 0.13 percent cash dividend. At present, the market price of the company’s share is Rs 680 per unit, according to available information.

Gold and Silver Prices Rise in Local Market

The price of gold reached an all-time high in the domestic market on Tuesday. It has risen by Rs 5,500 per tola (11.66 grams) and is being traded at Rs 267,200 per tola today. It was Rs 261,700 on Monday, according to the Federation of Gold and Silver Dealers’ Association. Similarly, the price of silver has been fixed at Rs 4,255 per tola. It has risen by Rs 20 per tola. The silver was traded at Rs 4,235 per tola on Monday.