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:

NRB Grants First Legal Approval for IT Sector Overseas Expansion

Nepal Rastra Bank has granted legal permission for a Nepali IT company to open an overseas branch and transfer equity for the first time. iDream Technologies received approval to establish iDream LLC in the United States. The central bank sanctioned the transfer of funds in dollars as equity to a US bank account. This milestone is expected to facilitate Nepali IT firms in actively targeting foreign currency earnings. Authorities believe this move will encourage more local tech companies to expand their global footprint, enhancing Nepal’s presence in the international digital services market and boosting service exports.

Economists Urge Fiscal Policy Reform to Address Trade Deficit

At a Nepal Rastra Bank interaction on Wednesday, experts argued that monetary tools alone cannot solve Nepal’s economic stress. Governor Dr. Biswo Nath Poudel highlighted that the transition directly from agriculture to service sectors has weakened the structural economy. Despite allocated budgets, weak institutional capacity has hindered capital expenditure. Former NPC Vice Chair Prithvi Raj Ligal noted that with high bad loans and low private sector credit demand, a 3.5 percent growth rate is difficult to achieve. Economists Dr. Govinda Nepal and Dr. Kalpana Khanal emphasized the need for coordinated fiscal reforms, including VAT multi-rates and reviewing fixed exchange rates with India.

Informal Sector Workers Face Delays in Social Security Integration

Government data reveals that some 4.4 million workers, representing 62.2 percent of the labor force, remain in the informal sector. Although a policy to include informal and self-employed workers in the Social Security Fund was enacted on August 17, 2023, only 1,469 individuals have successfully enrolled. This total consists of 809 informal and 660 self-employed contributors. Despite legal provisions, expansion efforts for government contract staff and informal workers are currently stalled at the Ministry of Finance. Challenges remain, as only 114 local units have signed agreements, with merely 6 actively facilitating the mandatory contribution process for workers.

Foreign Trade Surges by 20.07 Percent

Foreign trade reached Rs 8.826 billion during the first five months (November 17 to December 15) of fiscal year 2025/26. This marks a 20.07 percent year-on-year increase. According to the Department of Customs, imports grew by 15.83 percent to Rs 7.661 billion, while exports jumped by 58.17 percent to Rs 1.165 billion. Despite the export surge, the trade deficit widened to Rs 6.496 billion. India and China remain the top trade partners. Major imports included petroleum products and soybean oil, while large cardamom and carpets were key export items.

Nepal’s Exports Goods Worth Rs 116 Billion in Five Months

Nepal’s exported goods worth Rs 116 billion between November 17 and December 15, with 10 major items accounting for 57 percent of the total. According to the Department of Customs, processed soybean oil exports alone reached Rs 46.55 billion, a five-fold increase. Large cardamom exports brought in Rs 5.53 billion, marking a 60 percent rise in value. Additionally, yarn exports earned Rs 5.21 billion, while woolen carpets reached Rs 4.14 billion. Other exports included fruit juice at Rs 3.7 billion and processed sunflower oil at Rs 3.73 billion.

Processed Oil Exports to India Reach Rs 52.80 Billion

During the first five months (November 17 to December 15) of the current fiscal year, Nepal exported processed edible oil worth Rs 52.80 billion to India. This includes soybean, sunflower, and palm oil. However, the Department of Customs recorded that Nepal imported raw edible oil worth Rs 58.978 billion from third countries like Argentina, Brazil, and Indonesia during the same period. Trade experts noted that the export relies heavily on re-exporting with minimal value addition. Argentina alone supplied raw soybean oil worth Rs 39.24 billion and sunflower oil worth Rs 5.21 billion.

Birgunj Exports Rise 89 Percent

Exports through the Birgunj border reached Rs 39.97 billion during the first five months (November 17 to December 15) of the current fiscal year. According to the Birgunj Customs Office, this marks an 89 percent increase, or Rs 18.79 billion more compared to the Rs 21.18 billion exported during the same period last year. Processed soybean oil dominated exports at Rs 20.76 billion. Other major items included fruit juice at Rs 3.7 billion, processed sunflower oil at Rs 2.87 billion, and processed palm oil at Rs 1.97 billion. Clothing exports also contributed Rs 1.50 billion.

Nepalgunj Customs Records Business Transactions of Rs 30.668 Billion

Nepalgunj Customs Office recorded imports worth Rs 30.668 billion during the first five months (November 17 to December 15) of the current fiscal year 2025/26. Exports during the same period reached Rs 1.16 billion, resulting in total business transactions of Rs 31.685 billion. Comparatively, the previous fiscal year, 2024/25, saw imports of Rs 29.84 billion. The trade deficit remains high at 96.68. Additionally, revenue collection stood at Rs 7.651 billion, which is 83.45 percent of the December 15 target.

Mustang Customs Collects Rs 4.979 Billion Revenue via Korala Border

The Mustang Customs Office at the Lizi-Nechung border point collected Rs 4.979 billion in revenue since becoming fully operational on September 15. This surge follows the diversion of trade from the Rasuwagadhi and Tatopani points due to environmental obstructions. The office primarily handles the import of electric vehicles and consumer goods from China, clearing 1,761 electric vehicles in just over two months. Despite the high revenue, the office faces significant infrastructure gaps at an altitude of 4,650 meters. For the fiscal year 2025/26, the facility was allocated only Rs 5 million of the required Rs 50 million for permanent building construction on its available 152619.84 square meters of land.

Nepalgunj Herb Exports Surge by 71 Percent

Herb exports through the Nepalgunj border reached Rs 250 million by December 15 of the current fiscal year. This represents a 71 percent increase compared to the Rs 146.2 million exported during the same period last year. At least 841,338 kilograms of herbs were shipped. Approximately 85 percent of these exports are destined for India. The Herbal Entrepreneurs Association of Nepal urged for clearer government policies to simplify the export process and move beyond the current 85 percent India dependency.

Australia Tops Nepal’s Beaten Rice Export Market

Nepal exported beaten rice worth Rs 125.8 million between November 17 and December 15 of the current fiscal year 2025/26. Data from the Department of Customs shows that 314,311 kilograms of beaten rice were sent to 10 different countries. Australia emerged as the top destination, importing 144,632 kilograms valued at Rs 72.9 million. Other major markets included Italy at Rs 16.4 million, the USA at Rs 13 million, and Canada at Rs 10.7 million. Japan, Poland, and the UAE also imported significant quantities, contributing to the total export revenue.

Nepal Exports Pickles Worth Rs 82.4 Million to Ten Countries

Nepal exported pickles worth Rs 82.4 million during the first five months (November 17 to December 15) of the current fiscal year. According to the Department of Customs, a total of 140,304 kilograms of pickles were shipped to countries including Canada, Australia, South Korea, and Japan. Canada was the largest importer at Rs 19.4 million, followed by Australia at Rs 19.3 million. Although exports dropped slightly from Rs 95.6 million in the same period last year, the demand among the Nepali diaspora remains high in third countries.

Local Unit Reallocates Rs 16.3 Million Budget for Development

The 18th Municipal Assembly of Jaimini Municipality, Baglung, concluded after reviewing and reallocating Rs 16.3 million from the budget set in June. Mayor Nara Bahadur Pun chaired the session where Rs 9.8 million was specifically allocated for a ward office and health post in Ward 9. Additionally, Rs 1 million went to the sports development committee, and Rs 3 million was distributed among various wards. Deputy Mayor Harihar Sharma presented reports from the Revenue Advisory and Judicial Committees. While minor tax rate adjustments were made, the assembly maintained the core programs approved during the 17th session without major amendments.

South Korea Cuts EPS E-9 Visa Quota to 80,000 for 2026

The South Korean government reduced the EPS E-9 visa quota for non-professional workers to 80,000 for 2026, a 38.46 percent drop from 2025’s 130,000 slots. This decision by the Foreign Workforce Policy Committee affects 17 countries, including Nepal. The Ministry of Employment and Labor cited a slowing economy and a surplus of workers as reasons for the cut. While the E-9 quota decreased, the E-8 seasonal worker quota was raised to 109,000. Korea plans to move toward an integrated visa system to address labor shortages in specific industries and rural manufacturing sectors more effectively in the future.

NEFSCUN Accused of Embezzlement and Hiding Rs 900 Million Loss

The Nepal Federation of Savings and Credit Cooperative Union (NEFSCUN) is accused of altering financial reports to hide its actual status. Investigations suggest that NEFSCUN influenced auditors to present a better financial position by under-provisioning for bad loans. In the fiscal year 2024/25, the federation acquired Rs 1.64 billion in non-banking assets but only made a 50 percent loss provision, violating financial standards. Despite booking limited loan loss provisions, the federation’s retained earnings show a negative balance of Rs 900 million. This indicates an attempt to show “fake profits” while ignoring mandatory impairment loss calculations required by regulatory authorities.

Prices of Red Cherry Pepper and Coriander Surge in Market

The price of green Red Cherry Pepper (Akabare) and fresh coriander significantly increased in the Kalimati Market on Thursday. According to the Kalimati Fruit and Vegetable Market Development Committee, the wholesale price of Red Cherry Pepper chili rose by Rs 41, reaching Rs 366 per kilogram compared to Wednesday’s rate of Rs 325. Similarly, green coriander prices jumped by Rs 32 per kilogram. While it was traded at Rs 60 on Wednesday, the price reached Rs 92 per kilogram on Thursday. Market data reflects a sharp upward trend in the cost of these essential kitchen items.

Citizen Investment Proposes 8 Percent Cash Dividend

The Citizen Investment Trust (CIT) will hold its 31st Annual General Meeting on January 14, 2026, at its central building. The assembly will discuss the financial reports for the fiscal year 2024/25 and the proposed profit distribution. The board has recommended a five percent bonus share and an eight percent cash dividend for shareholders. Additionally, the meeting will conduct an election for one director to represent the shareholders on the board. CIT’s press note issued on Wednesday confirmed that the session will also focus on the annual report, financial statements, and future strategic directions to enhance investment outcomes.

Nine Life Insurance Companies Announce Dividends from Past Profits

IME Life and Sanima Reliance will close their books on Friday, making shareholders holding shares before the closure eligible for dividends. At least nine life insurance firms have declared payouts from last fiscal year’s accumulated profits. Most prioritized cash dividends, with five opting for cash only, while four offered a combination of low-rate bonus shares and higher cash payouts. Nepal Life Insurance and Life Insurance Corporation declared the highest dividends at 21 percent. Book closure for Nepal Life is already complete. Overall, dividends this year are seen as encouraging across the sector.

Gold and Silver Prices Decline

Gold prices in the local market fell by Rs 600 per tola (11.66 grams) on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the new price is Rs 267,500 per tola. This follows a record high of Rs 268,100 on Wednesday. Similarly, silver prices decreased by Rs 20 per tola to Rs 4,400, down from Rs 4,420 the previous day. Local dealers noted that while international market fluctuations influence domestic rates, the current slight decline provides minor relief after prices hit historic peaks earlier in the week during the peak wedding season.