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:

Two Hydro Projects Worth Rs 88 Arba Initiated on Budhigandaki

Naulo Nepal Hydro Electric Company has advanced the development of two major projects in Gorkha totaling 329.4 megawatts. The Budhigandaki ‘A’ project, with a capacity of 103.4 megawatts, is estimated to cost Rs 31.32 billion. Meanwhile, the 226-megawatt Budhigandaki ‘B’ project has an estimated cost of Rs 56.99 billion. Engineer Durgesh Magar confirmed that Environmental Impact Assessments and Power Purchase Agreements are complete. The electricity will be integrated into the national grid via an 18-kilometer transmission line to the Lapa substation in Dhading, significantly boosting the regional energy supply.

Legal Gaps Stall Introduction of 450 Kg Gas Cylinders

The planned introduction of 450-kilogram LPG cylinders for commercial use in Nepal is facing delays due to a lack of regulatory laws. While the Quality Council has certified the standards, According to the Nepal Oil Corporation, the absence of a Petroleum Act and an Explosives Act makes monitoring and safety enforcement difficult. Currently, regulations only recognize 14.2 kg and 19 kg cylinders. Consumer rights activist Madhav Timalsina warned that deploying high-capacity cylinders in densely populated areas without safety protocols could lead to significant disasters. There are currently 59 gas industries and some 17.5 million cylinders operating across the country under outdated 1970 bylaws.

New Land Partition Rules Approved for Electricity Transmission Lines

The government has implemented the third amendment to the Land Use Regulation 2021, allowing the partitioning of land located under electricity transmission lines. Published in the gazette on November 13, the new rules maintain that land ownership within the right-of-way remains with the original owner. While structures and tall trees remain prohibited, owners can now legally divide or use the land as bank collateral. Compensation rates between 10 and 25 percent of the land value are provided for Right of Way areas. For 400 kV lines, this area extends 46 meters wide. This amendment resolves long-standing social and economic issues for affected landowners.

3-Way Suspension Bridge in Surkhet Named National Priority Project

The Mehelkuna-Khatang-Ghumkhahare triangular suspension bridge has been officially listed as a National Priority Project by the government. Urban Development Secretary Gopal Prasad Sigdel confirmed that the Cabinet approved this status for the structure over the Bheri River in Surkhet. As Nepal’s longest three-way bridge, it will connect wards 8, 11, and 12 of Gurbhakot Municipality via a central pillar at Khatang. Foundation work was initiated exactly one year ago, with the project estimated to cost Rs 211.9 million. Construction is targeted for completion by mid-July 2026, aiming to transform the area into a major tourist attraction.

KMC Spends 18.48 Percent of Budget

Deputy Mayor Sunita Dangol reported to the 18th Municipal Assembly that Kathmandu Metropolitan City spent 18.48 percent of its budget in the first five months (July 17 to December 15). Out of the total Rs 25.764 billion budget for 2025/26, at least Rs 4.643 billion has been utilized as of December 24. Administrative expenses were the highest at 45.99 percent, while capital expenditure stood at 12.39 percent. Sectoral spending included 14.01 percent for infrastructure, 15.15 percent for economic development, and 16.22 percent for social development. Dangol noted that internal revenue and bank balances are expected to contribute Rs 20.126 billion to the treasury.

Madhesh CM Requests Increased Federal Grants of Additional Rs 200 Million

Madhesh Province Chief Minister Krishna Prasad Yadav met with Finance Minister Rameshore Prasad Khanal at Madhesh Bhawan to request an increase in federal grants. Yadav highlighted the province’s weak human development index as a primary justification for more financial support. He specifically drew attention to a Rs 200 million annual shortfall for the MBBS program at the Madhesh Institute of Health Sciences, which currently lacks federal funding. Minister Khanal responded positively, stating the federal government is committed to supporting the province’s economic development and prosperity. The leaders agreed to continue dialogue to resolve outstanding fiscal transfers for vital education and health infrastructure.

Bagmati Province Collects Only 23.88 Percent Revenue

Bagmati Province collected only Rs 16.11 billion in revenue during the first five months of the fiscal year, meeting just 23.88 percent of its annual target. Spokesperson Shree Krishna Acharya reported that weak land registration and vehicle tax collections have impacted the total. Regarding expenditures, the province spent Rs 6.646 billion, which is only 9.85 percent of its Rs 67.47 billion budget. The Ministry of Health spent 20.54 percent, while the Culture and Tourism Ministry recorded the lowest at 1.48 percent. Capital expenditure remains particularly low at 4.47 percent, highlighting ongoing fiscal management challenges.

Bhairahawa Customs Exports Reach Rs 12.3 Billion in Five Months

The Bhairahawa Customs Office recorded exports worth Rs 12.3 billion during the first five months of the fiscal year 2025/26, marking a 111.08 percent increase. According to the Customs Office, processed soybean oil led exports at Rs 5.414 billion, followed by synthetic yarn at Rs 1.407 billion. Total revenue collection reached Rs 43.67 billion, achieving 93.39 percent of the periodic target. While imports totaled Rs 1.169 billion, motorcycles contributed the highest import revenue at Rs 9.41 billion from 79,144 units.

Ministry Launches New Guideline to Modernize Agriculture Sector

The Ministry of Agriculture and Livestock Development has introduced the Agriculture Department Program Implementation Guideline, 2025, to transition the sector toward a competitive, export-oriented model. Approved by Minister Dr. Madan Prasad Pariyar, the plan includes establishing Custom Hiring Centers to provide small farmers with access to machinery through 50 percent subsidies. Additionally, the ministry will offer 85 percent grants for community seed banks and 100 percent funding for technical demonstrations and training. A strategic partnership with the Nepal Army will also be utilized to cultivate barren land and engage retired personnel in commercial farming enterprises.

Chhurpi Exports via Kakarbhitta Surge to Rs 379.9 Million

Exports of Chhurpi (a hard, traditional cheese from the Himalayan region) through the Kakarbhitta border increased by 33 percent during the first four months of the current fiscal year. Information Officer Iswar Humagain reported that 214,000 kilograms were exported, generating Rs 379.9 million in revenue. Once a local snack, chhurpi is now a high-demand “pet food” exported to 27 countries, primarily the USA and Canada. Rich in protein (67 to 75 percent), the product has earned over Rs 1 billion globally in a short period. Other markets include Brazil, Japan, and the UK, providing significant foreign currency earnings for farmers in Nepal’s eastern hills.

Second Ichchhakamana Orange Festival Begins in Muglin

The 2nd Ichchhakamana Orange Festival and Food Festival commenced on Friday in Muglin, Chitwan. Organized by the Chitwan Association of Industries and the Hotel Association, the event features over 50 stalls. The Ichchhakamana Rural Municipality sees an annual orange trade between Rs 90 million and Rs 100 million. The festival, running until December 30, aims to promote local tourism and support 100 orange-producing farmers. Activities include orange-eating competitions and interactions between experts and farmers to expand cultivation. The local government continues to distribute saplings annually to preserve the region’s famous orange groves.

Ghorahi Sub-Metropolitan Cuts Internal Capital Budget by 10 Percent

Ghorahi Sub-Metropolitan has announced a 10 percent cut to its internal capital budget for the fiscal year 2025/26. Chief Administrative Officer Rishiram KC stated the reduction is due to low revenue from land registration and the need to repair infrastructure damaged during recent Gen Z protests. Ward budgets have been halved from Rs 4 million to Rs 8 million, while departmental programs face up to 70 percent cuts. Mayor Narulal Chaudhary also proposed a monthly street light fee of Rs 30 and a new annual business tax of Rs 3,000 for vehicle rental services to stabilize the municipal treasury.

Budget Shortfall Halts Construction of Rs 169.7 Million Hospital

Construction of a 15-bed municipal hospital in Narainapur, Banke, has stalled at 90 percent completion due to a lack of federal funding. Narainapur Rural Municipality Chairman Ishtiyaq Ahmed Shah stated the project costs some Rs 169.7 million. Although the contract with Hanuman Construction was signed on March 24, 2023, with a completion deadline of September 23, 2023, the final payment remains pending. Accounting Officer Bharat Basnet confirmed that the construction remains halted until the federal government releases the remaining budget. The delay has caused concern among locals who currently lack access to basic health services.

International Arrivals at Gautam Buddha Airport Remain Low

Gautam Buddha International Airport in Bhairahawa handled 26 international flights and 26 landings recently, serving a total of 3,704 passengers. Data shows a significant imbalance, with 2,725 departures but only 979 arrivals. Information Officer Binod Singh Rawat noted that Thai Air Asia operated 18 of these flights. The Thai tourists often enter via Bodhgaya, India, and only use the airport for return flights. Despite the presence of carriers like Fly Dubai and Qatar Airways, stakeholders emphasize that consistent two-way traffic is essential to sustain the multi-billion rupee private investment in the region’s tourism infrastructure.

Weather Disrupts Flights at Five Major Airports

Adverse weather and thick fog led to the suspension of flight operations at five major airports across Nepal as of Friday afternoon. According to the Tribhuvan International Airport Civil Aviation Office, services at Rajbiraj, Janakpur, Simara, Bhairahawa, and Dhangadhi were completely halted until 1:00 PM. While landings continued at Kathmandu, low visibility in the Terai region has caused hundreds of passengers to face long delays and cancellations. Airline operators noted that service typically only resumes late in the afternoon when the sun clears the morning fog, creating a significant backlog for regional travelers during the peak winter season.

Government Launches ‘Help Us to Help You’ for Migrant Workers

The Ministry of Labor has launched the ‘Help Us to Help You’ program across 753 local units to curb fraud in foreign employment. Spokesperson Pitambar Ghimire stated the initiative provides answers to 10 critical questions regarding official fees, safe processes, and employer verification. This system connects local employment centers with the Department of Foreign Employment to prevent misinformation spread through social media. Additionally, the Nepali Embassy in Kuwait facilitated the recovery of Rs 34.4 million in compensation for 78 deceased and injured workers. The funds, including KWD 5,547 for Hem Bahadur Sunari, have been sent to Nepal.

Nepal and Saudi Arabia to Sign Historic Labor Agreement in January

Nepal and Saudi Arabia are set to sign their first formal labor agreement during the World Labor Market Conference on January 26-27, 2026. Labor Minister Rajendra Singh Bhandari and Saudi Acting Ambassador Abdulnasser bin Hussain Al-Harthi finalized the date on Wednesday. The agreement aims to secure legal rights, minimum wages, and insurance for approximately 400,000 Nepali workers currently in Saudi Arabia. According to Equidem director Rameshwar Nepal, the pact will prioritize transparency in recruitment and the safety of female workers. Data shows that 152,000 workers departed for the kingdom in the last fiscal year, while 684 deaths were recorded over the past two years.

Final Day for Reliance Spinning Mills IPO Applications

Today marks the final deadline for the public to apply for the Reliance Spinning Mills Initial Public Offering (IPO). The company is offering 924,768 shares at a price of Rs 820.80 per share through the book-building method. To date, the issue has been oversubscribed by approximately 24 times. Specifically, 115,596 units were allocated for Nepali workers abroad, while 57,798 units were reserved for mutual funds and employees. Investors can apply for a minimum of 50 shares and a maximum of 20,000 shares via Global IME Capital or the Mero Share platform. This offering is one of the largest since the introduction of the book-building system in Nepal.

Gold and Silver Prices Continue to Rise

The prices of gold and silver have continued to climb in the local market over the past few days due to the influence of a stronger US dollar. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold reached Rs 269,000 per tola (11.66 grams) on Friday from Rs 267,500 on last Thursday. Similarly, silver is being traded at Rs 4,585 per tola today against Rs 4,400 per tola on Thursday. The prices of both metals today hit record highs. Last Wednesday, the precious yellow metal was sold at Rs 268,100 per tola, while silver of similar quantity was traded at Rs 4,420.