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 Posts Marginal Gain as Turnover Reaches Rs 3.224 Billion

The Nepal Stock Exchange (NEPSE) index rose by 1.37 points on Wednesday to close at 2,585.87, posting a marginal gain amid moderate trading activity. A total of 7,224,917 shares of 334 companies were traded through 62,768 transactions, generating a turnover of Rs 3.224 billion. Infinity Laghubitta Bittiya Sanstha recorded the highest price gain of 5.32 percent, while Grameen Bikas Laghubitta Bittiya Sanstha posted the sharpest decline, falling 4.26 percent. In terms of turnover, SY Panel Nepal led with trades worth Rs 144.9 million, while Tehrathum Power Company topped the chart by share volume traded.

NRB Absorbs Rs 25 Billion to Curb Excess Liquidity

To manage excess liquidity in the financial system, Nepal Rastra Bank (NRB) is absorbing Rs 25 billion through a deposit collection instrument today. This 16-day intervention allows Class A, B, and C financial institutions to participate via an online bidding system. Total deposits in the banking sector have now exceeded Rs 7.5 trillion, prompting the central bank to manage interest rates actively. The minimum bid is set at Rs 100 million, with principal and interest repayment scheduled for January 9, 2026. This move follows open market operations guidelines to stabilize the market when long-term excess liquidity is observed within the national banking structure.

Banks Distribute Dividends Totaling Over Rs 330 Million

Commercial banks have concluded their dividend announcements for the fiscal year 2024/25. Out of 20 banks, 13 announced dividends while six opted not to. Everest Bank led with a 20 percent dividend, followed by Standard Chartered at 19 percent. The total dividend distribution amounts to approximately Rs 336.6 million, consisting of Rs 249.9 million in cash and Rs 86.5 million in bonus shares. Experts say that banks prioritized cash over bonus shares this year due to low credit demand and adequate capital adequacy ratios. The total paid-up capital of these banks has now reached Rs 517 billion.

Tax Administration Decentralization Launched at Local Level

Taxpayer service functions have begun transferring to local governments, starting from Kerabari Rural Municipality in Morang. Finance Minister Rameshore Khanal formally handed over the authority on Wednesday, calling it a major step toward strengthening administrative federalism. He said the move decentralizes tax administration, improves taxpayer convenience, and reduces compliance time and costs. The program also aims to curb irregular practices and expand local revenue capacity. During the event, the first business permanent account number was issued to The Voice Cafe and Restro, while an individual PAN was granted to Chitrakumar Tamang.

Land Transaction Capital Gains Tax Rises by 8 Percent

Capital gains tax from real estate transactions in Nepal reached Rs 6.298 billion in the first five months (November 17 to December 15) of the current fiscal year. This marks a 7.69 percent increase compared to the Rs 5.848 billion collected during the same period last year. Despite the rise in tax revenue, the total number of property registrations grew by only 0.88 percent, reaching 572,000 units. Total land revenue stood at Rs 16.75 billion. Officials noted that while overall volume remains stagnant, the sale of high-profit properties has driven the significant growth in capital gains tax collection.

Kulman Ghising Highlights 100 Achievements in 100 Days

Minister Kulman Ghising, overseeing Energy, Physical Infrastructure, and Urban Development, released a list of 100 achievements from his first 100 days. Key highlights include collecting Dedicated and Trunk line arrears in installments and exporting electricity worth Rs 19 billion to India and Bangladesh. In the infrastructure sector, he signed a JPY 34.49 billion loan agreement with Japan for Koteshwor intersection improvements. Ghising also terminated 40 underperforming contracts and finalized financial models for the Budhigandaki and Upper Arun projects. He emphasized field-based management over office-centric administration to expedite stalled bridge and road projects.

Petroleum Imports via Birgunj Reach Rs 72.28 Billion

The Birgunj Customs Office recorded petroleum imports worth Rs 72.28 billion during the first five months (November 17 to December 15) of the current fiscal year. This trade generated Rs 30.25 billion in revenue, marking a 6.42 percent increase, or Rs 1.83 billion, compared to the same period last year. According to the office, diesel imports led the volume at Rs 35.31 billion, followed by LP gas at Rs 12.17 billion and ATF at Rs 7.25 billion. Petrol and kerosene imports totaled Rs 173.6 million and Rs 190 million, respectively.

Apple Imports Reach Rs 4.246 Billion

Imported 38,293 tons of apples valued at some Rs 4.246 billion during the first five months of the current fiscal year. According to the Department of Customs, this represents a 13.78 percent increase compared to the Rs 3.732 billion spent during the same period last year. The government collected some Rs 418 million in revenue from these imports, which totaled over 38.2 million kilograms. The rising import volume highlights the growing domestic demand for the fruit, despite previous year-on-year fluctuations in trade value and quantity.

Cement Exports to India Surge by 1245 Percent, Collecting Rs 2.8 Billion

Nepal’s cement exports via the Krishnanagar border surged to 274,000 tons in the first five months (November 17 to December 15) of this fiscal year, up from 20,360 tons last year. This represents a 1245 percent increase following the timely renewal of BSI certificates by India. According to the Customs Office, increased infrastructure projects in India also fueled demand. While cement exports boomed, plywood exports fell by 209 percent due to quality standards. The Krishnanagar customs office collected Rs 2.8 billion in revenue, reaching 85.25 percent of its target. Coal remains the top import, contributing Rs 177.5 million to revenue.

Karnali Province Allocates Rs 41 Million for Nutrition

Karnali Province has allocated Rs 41 million this fiscal year to combat rising malnutrition rates. Following the closure of USAID-funded programs, which previously had a Rs 150 million budget, the provincial government is now independently funding incentives for landless and marginalized families. According to the Directorate of Health Services, the focus is on providing essential nutrients to children and pregnant women. Currently, 36 percent of children in Karnali suffer from stunting and 48 percent from anemia. Despite a poverty rate of 51 percent, the province aims to meet national nutrition targets by improving food security and parental awareness through health campaigns.

Budget of Rs 15.6 Million Stalled for Livestock Income Programs

New administrative hurdles have delayed income-generating programs in the Karnali Province. The Agriculture Development Office reports that the Rs 2 million allocated for 20 apple and walnut orchards is stalled because the provincial ministry has not issued new working procedures. Similarly, a Rs 15.6 million budget for yak and mountain goat source centers in Namkha and Simkot remains unused. Although 104 proposals were received, they cannot be processed without cabinet-approved guidelines. Officials noted that while procedures were previously handled by individual ministries, a new requirement for cabinet approval has created a bottleneck, missing critical agricultural seasons and affecting the livelihoods of local farmers.

Baitadi Farmers to Receive Rs 5K to Preserve Traditional Farming

To preserve the disappearing culture of traditional ox-plowing, the Veterinary Hospital and Livestock Service Expert Center has introduced a subsidy program in Baitadi. A total of 200 farmers across the Shivanath, Pancheshwar, Sigas, and Dilasaini rural municipalities will receive Rs 5,000 each. The initiative targets 50 farmers per municipality who rely on oxen for their livelihoods. Applicants must submit a photo of their oxen and a recommendation from their local ward office. Funded by the Ministry of Land Management, Agriculture and Cooperatives, this provincial program aims to protect traditional agricultural systems while providing direct financial relief to rural households.

Farmer Expects Over Rs 2.5 Million from Strawberry Cultivation

Farmer Birendra Khadka has expanded his commercial strawberry farming to Dang, Tulsipur, and Rolpa. Last year, the business recorded a turnover of Rs 2.5 million, and higher profits are expected this season with prices at Rs 800 per kilo. Despite an initial investment of Rs 800,000 for drip irrigation and mulching, the two- to three-month crop cycle provides high returns. Products are supplied to local markets and cities like Nepalgunj and Butwal. Most sales occur directly at the farm, attracting consumers seeking nutritious local produce.

Potato Production in Bara Hits 118,296 Metric Tons

Bara district has set a target to produce 118,296 metric tons of potatoes from 7,440 hectares this fiscal year. This is a slight decrease from last year’s 121,062 metric tons harvested from 7,450 hectares. The average yield is expected to be 15.9 metric tons per hectare. Major production hubs include Simraungadh, Devtal, and Pheta, supplying markets in Kathmandu and Chitwan. While the crop provides quick cash income, farmers face challenges such as lack of quality seeds, timely fertilizer, and cold storage facilities. Experts suggest that improved storage and modern technology could establish the region as a primary commercial potato hub for the country.

Infrastructure Office Calls Tenders Worth Rs 660 Million

The Infrastructure Development Office in Khotang has invited tenders for 112 projects valued at Rs 660 million. These projects are part of a larger plan involving 164 initiatives approved by the Koshi Province government for the fiscal year 2025/26, totaling over Rs 1 billion. According to the Office, while most tenders are active, some remain pending due to land ownership disputes. The budget, allocated under Minister Bhupendra Rai, covers road blacktopping, bridge construction, and school buildings. Local contractors expressed satisfaction with the timely tender calls, which aim to enhance regional connectivity and infrastructure quality across 10 local units.

Sunkoshi Marin Project Evaluated After Contract Termination

The Sunkoshi-Marin Diversion Multipurpose Project has completed an evaluation following the termination of its contract with Patel-Raman JV. The Rs 14.8 billion agreement was scrapped on November 24 due to slow progress, with only 10 percent physical completion despite 61 percent of the time elapsing. Minister Kulman Ghising inspected the site, directing officials to fast-track new tender documents. The project has seized the contractor’s equipment and site offices. A new tender process will be initiated immediately to ensure that the construction of the dam and powerhouse remains aligned with the completed tunnel’s schedule.

Bhadrakali Temple Reconstruction Budget Set at Rs 368 Million

Reconstruction of the Bhadrakali Temple complex in Kathmandu is progressing under a Rs 368 million contract. Deputy Mayor Sunita Dangol inspected the site on Tuesday, directing the Tulsi Ambuja JV to maintain traditional Newari architectural styles. The project, which began on June 18, 2024, covers 4,544 square meters and includes traditional carved doors and windows. While initial estimates were lower, design variations led to a revised cost. The reconstruction, aimed at repairing damage from the 2015 earthquake, is scheduled for completion by June 17, 2027. Local ward officials and the Guthi Institution are collaborating to ensure the site’s historical and cultural integrity.

Bhedetar Food Festival Targets Rs 25 Million

The Hotel Association of Bhedetar will host the 13th Bhedetar Food Festival from December 31 to January 2, 2026. The event highlights traditional dishes from the Rai, Limbu, Magar, and Newar communities. President Tuma Raj Limbu estimates a turnover of Rs 25 million and expects up to 60,000 tourists. Local hotels will offer a 10 percent discount during the festival to promote domestic tourism. Visitors can enjoy paragliding and visit nearby attractions like Namje, which CNN listed as a top global destination. The festival aims to draw government attention to the infrastructure development of this prominent eastern Nepali hill station.

First Five-Star Hotel in Sudurpashchim to Cost Rs 2.20 Billion

Club Chaulani Limited and IHG Hotels signed an agreement to manage the first five-star hotel in the Sudurpashchim Province. The Holiday Inn by IHG in Dhangadhi will feature 115 modern rooms, including 5 premium suites. The total project cost is Rs 2.20 billion, financed through Rs 1.43 billion in bank loans and Rs 770 million in promoter equity. Construction is already 40 percent complete. This international chain hotel aims to elevate the region’s tourism infrastructure to global standards. The signing ceremony involved Dr. Rajendra KC and Sudeep Jain, marking a significant milestone for private sector investment in the province’s urban centers.

Unpaid Dues and Absent Owners Stall Indira Sugar Operations

Indira Sugar and Agro Industries in Nawalparasi (Bardaghat Susta Paschim) owes farmers Rs 70 million for sugarcane purchased over the last three years. As the new crushing season begins, the mill owners remain out of contact, reportedly residing in India. While the Bagmati and Lumbini mills started operations on December 8 and December 21, Indira Sugar Mill shows no signs of maintenance. The government has set the current support price at Rs 690 per quintal, including a Rs 70 subsidy. However, farmers are still struggling to collect an additional Rs 80 million in unpaid government subsidies from the previous fiscal year.

Consumer Department Fines 3 Hotels

The Department of Commerce, Supplies, and Consumer Protection penalized three hotels a total of Rs 45,000. Specifically, Thakkhola Thakali Bhansa Ghar in Kathmandu was fined Rs 15,000, Pakakala Private Limited was fined Rs 10,000, and Indreni Food World and Banquet received a Rs 20,000 penalty. These actions were taken under Sections 38 and 39 of the Consumer Protection Act, 2018. During the monitoring of 18 establishments, the department issued reformative instructions to 15 other hotels and snack shops. Authorities emphasized that these inspections aim to ensure market discipline.

Nepal Telecom Launches Advanced Wi-Fi 6 Technology

Nepal Telecom has officially launched Wi-Fi 6 technology to enhance its FTTH services. This new generation of internet equipment includes updated routers and access points, providing a minimum speed of 100 Mbps. This technology ensures stable signals and supports multiple devices simultaneously. The utility offers individual and premium packages with speeds of 100, 150, and 200 Mbps, which also include mobile data and NTTV options. Customers can obtain detailed rates via the official app or by calling 198. This upgrade aims to provide a more secure and faster digital experience for users across the nation.

Ghami Khola Bridge Construction Reaches 80 Percent Progress

Construction of the Ghami Khola Bridge in Lo-Ghekar Damodarkunda Rural Municipality-2 in Mustang has reached 80 percent completion. This 40-meter span bridge is a vital link on the Beni-Jomsom-Korla road project connecting to the China border. Although the contract was signed on January 3, 2019, with Himdung Thokkar and Immortal JV for Rs 68,000,000, the project faced long delays. After missing the January 3, deadline, the contractor faced daily penalties of 0.05 percent. Authorities confirm that 14 bridges on this corridor are finished, and this final bridge will be completed within the current fiscal year.

NRB Urged to Lead Efforts Against FATF Grey List

The Banking Sector Reform Advisory Task Force, 2025, has recommended that Nepal Rastra Bank take a more proactive role in removing Nepal from the international “grey list.” The report emphasizes that the central bank must implement corrective actions within a 2-year timeframe. While the Financial Information Unit is now independent under the fifth amendment of the AML Act, the central bank remains crucial for overseeing payment systems. The task force also suggested policy flexibility, targeted credit expansion, and cautious merger strategies to revitalize the economy. It highlighted that excessive tightening and unbalanced mergers have distanced the banking sector from the real economy.

Gold Trades at Rs 268,100 as Precious Metals Set New Highs

Gold is trading at Rs 268,100 per tola (11.66 grams) today, while silver stands at Rs 4,420 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Both prices are the highest ever recorded in the domestic market. Just three days ago, gold was priced at Rs 258,300 and silver at Rs 4,105, showing a sharp and steady rise. Analysts attribute the surge mainly to the strengthening US dollar and rising global prices. In the international market, gold is trading at USD 4,525 per ounce and silver at USD 73 per ounce, further fueling the domestic rally.