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 Drops 12 Points on First Day of New Year

The Nepal Stock Exchange (NEPSE) index fell by 12.83 points on the first day of the New Year, closing at 2,620.92. This 0.48 percent decline followed a midweek gain of 10 points. Total turnover for Thursday reached Rs 4.713 billion with over 100 million shares traded. While the other group saw a marginal rise, all 12 other sub-indices, including banking and life insurance, ended in the red. Wean Nepal Microfinance hit a positive circuit of 10 percent, while Global IME Samunnat Yojana hit a negative circuit. SY Panel recorded the highest individual turnover of Rs 234.1 million.

Non-Banking Assets Surge to Rs 51 Arba in Five Years

Non-banking assets held by financial institutions have skyrocketed by Rs 41 billion over the last five years, reaching Rs 51 billion by November 2025. This surge occurs as banks seize collateral like land and buildings due to failed loan recoveries. Nepal Rastra Bank data shows such assets were only Rs 10 billion in 2022. The average non-performing loan ratio hit 5.26 percent this year, up from 4.42 percent. Commercial banks alone hold Rs 43.19 billion in seized property. Economic stagnation and the Gen Z protest have dampened private sector morale, making it difficult for banks to liquidate these assets.

Exports to USA Face Up to 26 Percent Tariff Starting Today

Starting Thursday, 77 types of Nepali products exported to the United States of America (USA) will face tariffs of up to 26 percent. The duty-free trade preference program, granted by the USA in 2015 following the earthquake, expired today. According to the Export Council of Nepal, products like pashmina shawls, mufflers, and hats will now see costs rise by six to 16 percent above the 10 percent baseline tariff. Despite pleas from the Ministry of Industry, Commerce and Supplies for a five-year extension, no renewal was granted, potentially weakening Nepal’s competitive edge against India and Bangladesh.

Rasuwagadhi Border Reopens After 6-Month Closure

The Rasuwagadhi international border point crossing resumed full operations on Thursday after being shut since July 8, 2025. The Chinese authorities constructed a 91-meter motorable bridge over the Lhende River to replace the bridge washed away by floods six months ago. The new bridge has a load capacity of 55 metric tons. According to the Rasuwagadhi Customs Office, Nepali containers have already started crossing toward Kyirong; the closure resulted in a revenue loss exceeding Rs 22 billion. Drivers remain concerned about the fragile road conditions between Syabrubesi and Rasuwagadhi following extensive monsoon damage.

Over 1.5 Million Nepalis Traveled Abroad in 2025

Data from the Department of Foreign Employment reveals that at least 1.5 million and 23,000 Nepalis traveled abroad between January 1 and December 31, 2025. Spokesperson Tikaram Dhakal reported that during the same period, 1.3 million and 13,191 citizens returned to Nepal. The statistics also highlight a significant influx of foreign visitors, with 1 million and 15,378 tourists entering the country while 982,561 departed. While most foreigners visit for tourism under various visa categories, Nepalis primarily travel for employment and education, followed by business and tourism. The figures reflect Nepal’s ongoing reliance on labor migration and the steady recovery of its domestic tourism sector.

Immigration Data Shows 1 Million Foreign Arrivals in 2025

The Department of Immigration has officially recorded 1 million and 15,378 foreign arrivals in Nepal throughout the year 2025. According to the year-end report, 982,561 foreign nationals departed the country during the same timeframe. Most visitors entered under tourist visas, though the department manages 10 different visa categories, including labor and study permits. This milestone of exceeding 1 million arrivals is seen as a positive indicator for the national economy. The data suggests that while tourism remains the primary draw, the diversity of visa services provided reflects Nepal’s growing international engagement in various professional and educational sectors.

Nepal Poultry Industry Records Annual Turnover of Rs 145 Billion

The Nepal Poultry Federation reported an annual turnover of Rs 145 billion during a press conference in Bharatpur on National Poultry Day. According to the Federation, estimated total investment in the sector is Rs 160 billion. However, the industry faces severe contraction; broiler hatcheries have dropped from 340 to 109 since the pandemic. While Nepal is nearly self-sufficient in eggs and meat, it spends Rs 45 billion annually to import raw materials, medicines, and equipment. According to the Nepal Feed Industries Association, at least 99 percent of soybean and 50 percent of maize required for feed are still imported.

Taplejung Large Cardamom Production Generates Over Rs 5 Billion

While the cultivation area for large cardamom in Taplejung expanded to 4,578 hectares this year, total production dropped by 248 metric tons. According to the Agriculture Knowledge Center, Taplejung, the district produced 2,291 metric tons, down from 2,539 last year due to a prolonged drought. Despite the lower yield, farmers earned approximately Rs 5.498 billion as market prices reached Rs 102,000 per 40 kilograms. Although prices recently dipped to Rs 96,000, the high value of cardamom continues to attract farmers across 60 wards, excluding only Olangchung Gola village in ward 7 of Phaktanglung Rural Municipality.

Wednesday Flight Added to Suketar Airport Schedule

Nepal Airlines Corporation (NAC) has increased its flight frequency to Suketar Airport in Taplejung to three times a week. The airport authorities announced that flights on the Kathmandu-Taplejung-Kathmandu route will now operate on Mondays, Wednesdays, and Fridays throughout January. Previously, the airport only saw two weekly flights. The addition responds to high passenger demand, with one-way fares currently set at Rs 9,403. While flights from Biratnagar were common in previous years, NAC has not yet made a decision regarding the resumption of that specific provincial route.

Govt.-Funded Rs 470 Million Milk Powder Plant Faces Closure

A milk powder processing factory in Hetauda, established with a Rs 470 million investment by the Bagmati Provincial Government, is at risk of shutting down before fully starting. Launched by former Minister Dawa Dorje Lama in the fiscal year 2020/21, the plant lacks a sustainable operational modality. Although the Dairy Development Corporation (DDC) conducted test runs in 2023, no formal management agreement exists. Current Minister for Agriculture and Livestock Development Madhusudan Paudel is considering a public-private partnership after DDC refused to share profits. Auditor General reports have criticized the project for a Rs 61 million cost overrun and inadequate storage space for butter and milk.

Technical Issues Halt Production at 73 MW Middle Tamor Hydropower

Electricity generation at the 73 MW Sanima Middle Tamor Hydropower project in Taplejung has been suspended for nearly three weeks. Operations stopped in mid-December 2025 due to technical failures at the power station. According to the Administration, since the breakdown coincided with the scheduled annual maintenance period, both repairs and routine servicing are being conducted simultaneously. All necessary spare parts have arrived at the site, and technicians are working at a high pace to restore production. The plant, which started operating two years ago, supplies electricity to the national grid via the Basantpur substation.

Samudayik Laghubitta Denies Dividend Distribution This Year

The Board of Directors of Samudayik Laghubitta Bittiya Sanstha has decided not to provide any dividends to its shareholders for the last fiscal year. During a meeting held on Wednesday, the microfinance institution concluded that no profit distribution is possible as its distributable funds remain in the negative. This decision comes as a disappointment to investors who were expecting returns from the company’s annual earnings. The institution’s financial performance was impacted by negative distributable profits, leading the board to prioritize fiscal stabilization over dividend payouts. The decision will now be presented at the upcoming annual general meeting for formal notification.

Price of Petrol and Diesel Declines

Nepal Oil Corporation has reduced the price of petrol, diesel, and aviation fuel with effect from Thursday morning. The price of petrol has been reduced by Rs 4 per liter, diesel and kerosene by Rs 5 per liter, and aviation fuel by Rs 6 per liter for domestic aviation and by USD 42 for international flights to Kathmandu. The corporation has stated that even though the purchase price of LP gas has increased, the retail selling price of cooking gas has been kept unchanged, keeping in mind the interests of consumers. Accordingly, the new price of petrol for a distance of up to 15 kilometers from the depot or office has been fixed at Rs 156.50 per liter in the first category, Rs 158 in the second category, and Rs 159 in the third category. Similarly, the price of diesel/kerosene has been fixed at Rs 134.50, Rs 136, and Rs 137 per liter in the first, second, and third categories, respectively. The first category includes Charali, Biratnagar, Janakpur, Amlekhgunj, Bhalbari, Nepalgunj, Dhangadhi, and Birgunj. The second category includes Surkhet and Dang, and the third category includes Kathmandu, Pokhara, and Dipayal.

Gold and Silver Price Declines

Gold prices in the local market declined slightly on Thursday, falling by Rs 1,400 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 1,400 per tola to Rs 259,600. On Wednesday the price stood at Rs 261,000 per tola. Similarly, the price of silver has also decreased. The price of silver, which was at Rs 4,470 per tola on Wednesday, decreased to Rs 4,415 per tola on Thursday, according to the Federation.