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 by 10.87 Points

The Nepal Stock Exchange (NEPSE) index increased by 10.87 points on Tuesday, closing at 2,633.76. According to NEPSE, a total of 11,946,333 shares of 342 companies were traded through 63,981 transactions, resulting in a total turnover of Rs 5.13 billion. All sub-indices advanced during the day’s trading session. The Manufacturing and Processing group recorded the highest gain, rising by 1.61 percent. Shares of SY Panel Nepal and Ngadi Hydropower hit the positive circuit, while Wean Nepal Laghubitta Bittiya Sanstha saw its share price hit the negative circuit. In terms of transaction value, Green Venture Limited led the market, with 349,744 shares traded worth Rs 177.9 million.

NRB Withdraws Rs 25 Billion via One-Year Bonds

Nepal Rastra Bank (NRB) withdrew Rs 25 Arba from the banking system on Wednesday, using one-year bonds. Titled “Nepal Rastra Bank Bond 2025 B,” this instrument aims to manage excess liquidity. This follows a similar issuance of Rs 25 billion last Monday. Interest rates will be determined through a bidding process, with payments made every 6 months. The principal will be repaid on December 31, 2026. Participation is restricted to Class A, B, and C financial institutions, with a minimum bid requirement of Rs 50 million.

India Renews Permission for Nepal to Import 654 MW of Power

India has renewed permission for Nepal to import 654 MW of electricity through the Indian Energy Exchange (IEX) at competitive market rates. The renewal, effective from January 1, 2026 to March 31, 2026, ensures a stable power supply during the dry season. The volume includes 600 MW via the Dhalkebar-Muzaffarpur line and 54 MW via the Tanakpur-Mahendranagar line. Energy Minister Kulman Ghising reportedly coordinated with Indian officials to finalize the renewal before the previous permit expired on Wednesday. A subsequent renewal for the period starting April 1, 2026 is expected later in the year.

Betan Karnali Hydropower Project Secures Rs 93.40 Billion Investment

The 439 MW Betan Karnali Hydroelectricity Project is moving forward after securing a generation license and an investment approval of Rs 93.40 billion from the Investment Board. Led by the Employees Provident Fund, the project is currently finalizing a Power Purchase Agreement (PPA) with the Nepal Electricity Authority. Managing Director Krishna Prasad Acharya noted that a dispute with the Indian firm GMR over reservoir levels was resolved through board coordination. The project includes a 140-meter dam and is estimated to cost Rs 88.19 billion, including interest. Construction of a 95-kilometer access road is already underway.

Finance Minister Allocates Rs 25 Billion for Upcoming Election Expenses

Finance Minister Rameshore Khanal announced on Wednesday that the government has secured funding for the March 5, 2026, elections using the current budget. By halting 4,000 unprepared projects worth Rs 30 million each, the ministry freed up approximately Rs 120 billion. Khanal confirmed that Rs 60.9 million has already been released to the Election Commission. Total costs are projected to include Rs 17 billion for temporary police and Rs 25 billion to Rs 26 billion for equipment and vehicles. The minister assured that these strategic budget freezes would ensure the national election proceeds without requiring additional external funding or supplementary budgets.

Karnali Government Spends Only 4.36 Percent of Capital Budget

Karnali Chief Minister Yam Lal Kandel has criticized government employees for the slow execution of the development budget. Despite an annual budget of Rs 32.996 billion, only 9.87 percent was spent in the first five months (July 17 to December 15). The capital expenditure is particularly low at 4.36 percent, with just Rs 870 million spent out of a Rs 19.98 billion allocation. Currently, Rs 29.73 billion remains idle in the provincial treasury. Secretary Arjun Kumar Bam has instructed officials to recover advance payments from stranded projects and initiate legal action against negligent contractors to accelerate infrastructure progress across the province.

Textile Industry Faces Crisis as Rs 20 Billion Investment Risks Loss

Nepal’s textile industry is nearing collapse following the removal of a 70 percent Value Added Tax (VAT) refund policy five years ago. According to the Nepal Textile Industries Association, the number of operational factories has plummeted from 250 to just 50, leaving a Rs 20 billion investment at risk. The association highlighted that while national demand is Rs 600 billion, illegal imports from India account for Rs 500 billion. Nepali producers cannot compete with India’s 5 percent GST compared to Nepal’s 13 percent VAT. The association is demanding urgent policy reforms and better border control.

Serious Parking Chaos Reported at Tribhuvan International Airport

Tribhuvan International Airport (TIA) is facing severe parking congestion for airplanes and helicopters, raising safety concerns. The crisis intensified after helicopters previously managed at Nalinchowk were moved back to the airport premises. Sources within the airport claim that the limited space is creating risks of potential accidents. Internal friction has also grown regarding the appointment of junior officers to senior leadership roles, which critics argue has weakened regulation. Despite a previous decision to limit helicopter parking to 11 units, Civil Aviation Authority of Nepal (CAAN) Director General Deo Chandra Lal Karn and General Manager Tek Nath Sitaula have reportedly struggled to enforce these rules.

Feasibility Study Begins for Special Economic Zone at Korala Border

Ojas Engineering has started a feasibility study for a Special Economic Zone at the Korala border crossing between Nepal and China. Funded by an Rs 1.8 million budget from the Ministry of Finance, the study covers 254366.41 square meters for customs, warehouses, and immigration offices. Engineer Roshan Sapkota noted that the Mustang Customs Office has already collected over Rs 5 billion in revenue this year despite operating from just five small rooms. Since August, approximately Rs 11 billion worth of goods have been imported. Local traders have urged the government to build permanent structures to replace current tents and temporary shelters.

Orange Production in Myagdi Decreased by 5.56 Percent

Orange production in Myagdi decreased by 5.56 percent this year, despite an increase in cultivation area to 430 hectares. According to the Agricultural Development Office, Myagdi, while the weather was favorable and free of pests, the natural cycle of the trees resulted in lower yields. Total production is estimated at 4,515 metric tons, down from 4,781 last year. However, farmers are receiving higher prices, selling at Rs 70 to Rs 75 per kilogram. The total market value for this year’s harvest is estimated at Rs 316 million, with major markets in Kathmandu, Pokhara, and Muglin.

Nepal Agritech International Expo to Open in Bharatpur on January 16

Media Space Solutions and Futurex Trade Fair and Events will host the Nepal Agritech International Expo from January 16 to 18 at the Chitwan Exhibition Center. The event will feature over 100 stalls from Nepal, India, and China, showcasing advancements in poultry, dairy, and agricultural machinery. Supported by the National Agricultural Modernization Program, the expo offers free entry and aims to introduce affordable tools and large-scale equipment to local farmers. Key partners include the National Dairy Development Board and the Nepal Poultry Federation, focusing on enhancing financial and technical literacy in the agricultural sector.

EPS Passers Protest in Gwarko Demanding South Korea Deployment

Over 200 youths who passed the Employment Permit System (EPS) language and skill tests staged a protest at the Gwarko office in Kathmandu on Wednesday. The protesters, some of whom have been on the roster for nearly 2 years, are demanding immediate deployment to South Korea. Out of 17,030 successful candidates for 2025, many have yet to receive labor contracts. Director Binda Acharya stated that the Nepal government has forwarded demands, including roster extensions and sector changes, to the Korean government. Currently, over 1,00,000 Nepalis work in Korea. In 2025, 11,200 workers were sent, an increase from 9,200 in 2024.

Gold and Silver Price Drops

The prices of gold and silver declined on Wednesday, following a continuous rise in the prices of both the metals in the local market over the past few days. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold is set at Rs 261,000 per tola (11.66 grams), and that of silver of the same quantity is Rs 4,470 today. The price of gold was Rs 262,100 per tola and that of silver Rs 4,590 per tola on Tuesday.