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:

Six-Year Delay Leaves Key Taplejung–Biratnagar Road Abandoned Despite Millions Spent:
A strategic road linking Taplejung and Panchthar districts to Biratnagar has been left incomplete six years after construction began. The 25-kilometre Khorsane–Kerabari–Singhadevi road, launched in 2019 under the Rural Road Network Improvement Project, stalled after the contractor abandoned work despite six deadline extensions. Although Rs 351.6 million has already been paid, only partial progress was achieved, prompting contract termination in March 2025. The road is vital for reducing travel time, boosting tourism and agricultural trade in northern Morang. Authorities have begun re-tendering, with fresh funds allocated, but locals remain frustrated by prolonged inaccessibility.

NEPSE Gains 0.75% as SY Panel Leads Weekly Rally:
The Nepal Stock Exchange (NEPSE) index rose 0.75% this week, driven by strong performances in most sectors, while only three sector indices closed in the red. The highest intraday gain was 28.73 points on Monday, with a daily turnover of Rs 6.47 Arba; weekly turnover totaled Rs 28.69 Arba across 5.86 crore shares and 3,94,789 transactions. NEPSE’s current market capitalization stands at Rs 44.33 Kharba. SY Panel Nepal Limited (SYPNL) emerged as the top gainer, surging 19.13% to Rs 1,258.00. Companies with the highest beta included Joshi Hydropower, Daramkhola Hydro, and Mid Solu Hydropower, while Naasa Securities was the leading buying broker, purchasing stocks worth Rs 1.64 Arba.

‘Gen Z’ Protests Inflict Record Physical and Economic Damage Worth NPR 84.45 Billion:
The September 8–9 ‘Gen Z’ protests caused unprecedented losses across Nepal, according to a high-level government committee. Total physical and asset damage reached NPR 84.45 billion, equal to 1.38% of GDP and 4.3% of the annual budget. Government properties bore 53% of the losses, private assets 40%, and community resources 7%. Damage included 2,671 buildings and 12,659 vehicles, with Bagmati Province most affected, accounting for 66.5% of total losses. The protests also disrupted production and employment, affecting 2,999 workers. With only a fraction of assets insured, reconstruction costs are estimated at NPR 36.30 billion.

Tourism Department Tightens Casino Rules to Curb Money Laundering:
The Department of Tourism has amended its directives to casino operators to strengthen measures against money laundering and terrorist financing. This is the second revision to the instructions governing casinos, which are classified as reporting institutions under Nepal’s regulatory framework. Exercising authority under the Anti-Money Laundering Act, 2064, and the Tourism Act, 2035, the department has introduced a new requirement mandating casinos to maintain detailed records of customers conducting cash transactions exceeding Rs 200,000 in a single day. Casinos must now collect and retain customer identification and transaction details, enhancing regulatory oversight, transparency, and traceability of large cash-based gambling activities.

Saudi Arabia Emerges as Top Destination for Nepali Migrant Workers:
Saudi Arabia has overtaken the UAE as the top destination for Nepali migrant workers after stricter visa rules were imposed following the September Gen Z protests. Data show over 30,000 Nepalis received labour permits for Saudi Arabia in two months, the highest among all destinations. The UAE’s requirement of police clearance certificates and additional visa verification fees without approval guarantees pushed workers away. Malaysia’s long-term restrictions have further narrowed options. Qatar now ranks second, while the UAE has slipped to third. To formalise labour migration, Nepal and Saudi Arabia are set to sign their first bilateral labour agreement, focusing on wages, safety, and better working conditions.

Banks Face Growing Loan Recovery Challenges Amid Economic Slowdown and Post-Protest Uncertainty:
Nepal’s banks and financial institutions are struggling with rising difficulties in loan and interest collection due to an economic slowdown, political instability, and the aftermath of the recent Gen Z (Jenji) protests. Borrowers are unable to pay installments, creating intense pressure on bank employees and management. Threats, abusive behaviour, and excuses by debtors have exacerbated the situation, while banks’ non-performing assets have surged 61.7% compared to the previous year. The protests and subsequent disruptions, along with heavy rainfall and blocked roads, have reduced business income, limited new investment, and increased operational risks. Banks now face financial stress, rising bad loans, and heightened employee pressures.

Government Moves to Regulate E-Commerce, Ensuring Consumer Protection and Refunds:
The Ministry of Industry, Commerce and Supplies has unveiled a draft “Electronic Commerce (E-Commerce) Directive 2082” to regulate online businesses on platforms like Facebook and TikTok. The move aims to make online trade transparent, protect consumers, and prevent fraud. Under the draft, firms must refund payments within seven days if a product is not delivered or is returned, and comply with strict rules on payment systems, data security, and digital invoicing. E-commerce businesses will be required to use Nepal Rastra Bank-approved digital payment gateways, and even cash transactions must issue electronic receipts. Stakeholders are invited to provide feedback on the draft.

NRB Lowers Cheque Payment Threshold to Rs 5 Lakh to Strengthen Accountability:
Nepal Rastra Bank (NRB) has revised its payment and cheque-clearing rules, lowering the mandatory account-payee cheque threshold from Rs 10 lakh to Rs 5 lakh, effective from Magh 1. Now, banks and financial institutions must pay amounts of Rs 5 lakh or more only via account-payee cheque or directly to the beneficiary’s account. Payments in the name of firms, companies, or institutions also require account-payee cheques, though exceptions allow cash payment with valid justification. Microfinance institutions must follow this rule to support anti-money laundering efforts. The directive permits daily cash transactions between licensed financial institutions and requires monthly reporting of cash payments under exemptions.

Non-Life Insurance Sector Records 14% Growth in First Five Months of FY 2082/83:
Non-life insurance companies in Nepal achieved significant growth in the first five months of fiscal year 2082/83, generating approximately Rs 19.99 billion in premiums, up 14.10% from Rs 17.52 billion in the same period last year, according to the Nepal Insurance Authority. Fourteen non-life insurers and four micro non-life insurers contributed to this performance. Bagmati Province led collections with Rs 13.63 billion, accounting for 68.18% of total premiums, followed by Lumbini (Rs 1.72 billion) and Koshi (Rs 1.67 billion). Other provinces—Madhesh, Gandaki, Sudurpashchim, and Karnali—contributed smaller shares, reflecting growing regional penetration of the sector.

Nepalis Live in “Personal Deficit”: Average Lifetime Earnings Cover Expenses for Only 20 Years:
A recent survey by Nepal’s Central Bureau of Statistics reveals that the average Nepali lives much of life in financial deficit. Citizens can earn more than their expenses for only 20 years, typically between ages 27 and 47, after which income falls short of basic needs. Household spending on food, housing, and transport accounts for roughly 90% of expenses, while education costs are largely borne privately despite constitutional provisions for free basic education. Health spending is mainly government-supported, except in old age, when out-of-pocket costs rise. The findings highlight limited productive income periods and diminishing human capital before retirement, reflecting broader economic vulnerability.

Hydropower IPOs Raise Millions but Generation Delayed, Exposing Nepal’s Sector Risks:
Nepal’s hydropower sector faces structural challenges as companies listed on NEPSE often fail to start commercial production despite raising billions from the public. By the end of 2025, 97 hydropower companies were listed, the largest sector group, yet projects like Madhya Bhotekoshi and Rasuwa Gadhi took years to achieve commercial operation (COD) due to transmission delays, technical issues, and natural disasters. Many projects still under construction are seeking IPOs, transferring construction and operational risks to retail investors. Delays increase costs, interest burdens, and reduce EPS, undermining investor confidence. Experts recommend prohibiting IPOs until projects commence production to protect public investors.

Gen Z Protests Push Nepal’s Luxury Hotels Back into Losses, Spring Season at Risk:
Nepal’s luxury hotel sector has slipped back into losses after violent Gen Z-led anti-corruption protests in early September disrupted peak tourism season. First-quarter financials of listed hotels show widespread losses or declining profits, reversing a fragile post-Covid recovery. Industry leaders warn that snap elections scheduled for March 5, during the spring peak season, could trigger fresh protests and further deter tourists. Major properties, including Hyatt Regency Kathmandu, remain affected by vandalism and closures, while others cite falling occupancy, overcapacity, weak infrastructure and negative travel advisories. Despite marginal growth in tourist arrivals, revenues have plunged, highlighting tourism’s vulnerability to political instability.

Kanchenjunga Base Camps Fall Silent as Spring Tourism Season Ends:
The base camp region of Mount Kanchenjunga in Taplejung, Nepal, has grown quiet with the conclusion of the spring tourist season. Trekking routes and high-altitude camps such as Khambachen, Lonak, Pangpema, Cheiram, and Ramjerlagyat are now largely deserted, as hotel operators and service providers return to lower settlements. Despite the off-season lull, the Kanchenjunga Conservation Area reports a rise in visitor numbers, with 950 foreign tourists in the 2025 spring season, up from 877 in 2024. Authorities are using this period for infrastructure maintenance, ecological monitoring, and community-based planning, while stakeholders remain optimistic about sustainable tourism growth in the region.

Raughat 40 MW Hydropower Project Nears Completion with 92% Physical Progress:
The 40 MW Raughat Hydropower Project in Myagdi has achieved 92% physical progress, with key tunnel and penstock structures completed. Managed by Raghuganga Hydropower Limited, the project spans Raghuganga Rural Municipality-4 and 5. The 6.27 km main tunnel, 1.08 km penstock pipeline, and power house are nearly complete, with first 20 MW turbine-generator installed and second in final stage. The 31-meter dam and 119.7-meter descender pond are mostly finished. Funded jointly by the Nepal government, Nepal Electricity Authority, and India Exim Bank ($67M loan), the project aims to begin test generation by 2082 nepali date and supply 24.59 million units annually to the central grid.

Nepal Electricity Authority Commissions 3 MVA Rakum Substation in Dailekh:
Nepal Electricity Authority (NEA) has commissioned a 3 MVA, 33/11 kV Rakum Substation in Dailekh, the district’s third, joining the existing 8 MVA substation in Dailekh market and 3 MVA in Dullu Municipality. Inaugurated on Mangsir 25 by NEA officials and contractor MSIPL–ENPL JV, the substation will improve power quality for 6,133 households in Aathbiskot, 3,840 in Thatikadh, and parts of Chamunda Bindrasaini. The 33 kV transmission line to Kalikot will also benefit. Although no hydropower plant is yet connected, future projects can be linked. The 11.5 crore NPR project faced a one-year delay due to difficult terrain and access road challenges.

Three Hydropower Projects Fined for Using Public Land Without Compensation in Gaurishankar Conservation Area:
Three hydropower projects in Nepal’s Gaurishankar Conservation Area have been fined a total of NPR 96.42 million for using public land without compensatory purchase. Green Life Hydropower Ltd., constructing the 40 MW Khani Khola project in Dolakha, paid the highest fine of NPR 46.09 million for using 3.75 hectares of government land. Him River Power Ltd.’s 16 MW Liping Khola project in Sindhupalchok paid NPR 32.64 million, and Middle Bhotekoshi Hydropower (102 MW) paid NPR 17.67 thousand. Four more projects, including Rolwalin and Upper Tamakoshi, are under investigation. Fines were levied under the 2080 Public Land Provision and National Parks and Wildlife Conservation Act, 2029.

Nepali Edible Oil Industry Reaps Huge Gains from India’s Higher Import Tariffs:
Nepal’s edible oil refineries benefited significantly last fiscal year due to India raising import tariffs on palm, soybean, and sunflower oils in September 2024. India increased duties on raw oil from 5.5% to 27.5% and on refined oil from 13.75% to 35.75%, making imports from Nepal more competitive due to WTO and SAFTA benefits. As a result, Nepali refineries exported processed oil at higher margins, earning roughly NPR 2 trillion in total. Eight leading refineries, including Narayani, Sushil, Ganapati, and Baba Vegetables, alone accounted for over NPR 52.47 billion in trade, highlighting the tariff-driven export boom.

Nepal Insurance Authority Conducts Risk-Based Supervision of Four Insurers:
Nepal Insurance Authority (NIA) has completed risk-based supervision (RBS) of four insurance companies: Nepal Life Insurance, Citizen Life Insurance, Life Insurance Company (Nepal) Ltd, and Shikhar Insurance. RBS evaluates insurers’ risk profiles across operational, market, credit, strategic, compliance, conduct, AML/CFT, and climate risks, enabling timely regulatory interventions. The authority has also initiated RBS for five additional companies. The framework allows differentiated supervision based on risk severity, from routine monitoring for low-risk insurers to corrective actions, restrictions, or board-level interventions for high-risk entities. This system enhances financial stability, safeguards policyholders, and strengthens the overall insurance sector in Nepal.

Nepal Must Create 6.5 Million Jobs by 2050 to Harness Demographic Dividend: World Bank:
Nepal’s working-age population is set to grow sharply by 2050, offering a potential demographic dividend, but only if the country can create 6.5 million jobs, the World Bank warns. The report Nurturing Nepali Talent to Foster Economic Growth highlights declining human capital, heavy reliance on informal employment, and limited domestic job creation as major obstacles. While remittances—nearly a quarter of GDP—have reduced poverty, large-scale migration drains skilled labour. Women and youth face severe employment gaps, and regional disparities remain stark. Without urgent reforms to boost quality jobs, gender equity, and workforce utilisation, Nepal risks missing a historic growth opportunity.

Pratap Jung Pandey Elected Unopposed as President of Nepal Airline Operators’ Association:
Pratap Jung Pandey has been elected unopposed as president of the Nepal Airline Operators’ Association during its 25th annual general meeting in Kathmandu. The new committee includes Nima Nuru Sherpa (First Vice President, Altitude Air), Suwas Sapkota (Second Vice President, Yeti Airlines), and Umesh Paneru (Third Vice President, Tara Air). Other office bearers include Murli Dhar Joshi (General Secretary, Simrik Air), Bal Krishna Pandit (Secretary, Air Dynasty), and Rupesh Joshi (Treasurer, Buddha Air). Nepal Civil Aviation Authority’s Acting Director Devchandra Lal Karn emphasized long-term strategic planning, fleet modernization, and maintaining aviation safety while ensuring airlines’ commercial viability.

Nepal Securities Board, Electricity Regulatory Commission Discuss Collaboration to Boost Investment in Power Sector:
Nepal Securities Board (SEBON) and the Electricity Regulatory Commission (ERC) held a joint meeting to strengthen collaboration for the development of Nepal’s capital market and power generation sector. The discussion focused on promoting investment in electricity projects through the capital market, regulatory coordination, and policy alignment. Both authorities emphasized the need for a transparent, effective, and investor-friendly mechanism to mobilize sustainable financial resources. Participants pledged to enhance trust, expand investment opportunities, and support overall sectoral stability through continuous collaboration, information exchange, and joint initiatives. The meeting also discussed forming a joint task force to coordinate policy, regulatory alignment, and legal adjustments for improved institutional synergy.

Nepal Sets First-Ever Quality Standards for Masyaura and Chhurpi to Boost Food Safety and Exports:
For the first time, Nepal has introduced official quality standards for two traditional foods—masyaura and chhurpi—aiming to ensure food safety and strengthen their export potential. Approved by the Ministry of Agriculture and published in the Nepal Gazette, the standards define ingredients, moisture, protein levels, hygiene requirements and packaging rules. The move follows rising domestic use and growing overseas demand, particularly among the Nepali diaspora and in dog chew markets. Masyaura exports reached 42 tonnes last year, while chhurpi exports totaled 2,610 tonnes worth Rs4.51 billion. Producers failing to meet standards will face legal penalties under existing food laws.

Severe Cold Wave Triggers Heater, Geyser and Blanket Rush in Nepalgunj:
An intense cold spell since the start of winter has sharply boosted sales of heaters, geysers and winter clothing in Nepalgunj, traders said. With cold conditions arriving earlier and persisting longer than expected, demand for heating appliances and warm wear has surged, leading to shortages. Traders estimate that over 50,000 heaters and 15,000 geysers were sold in just three weeks, with buyers also arriving from nearby Indian towns. Many shops have already exhausted their stocks. The cold wave has also driven up electricity consumption, as increased use of heaters, geysers and air conditioners raises power demand in the region.

Remittance Surges 35.6% as Forex Reserves Hit Record High, Inflation Eases:
Remittance inflows to Nepal jumped by a robust 35.6 per cent to Rs 870.31 billion in the first five months of fiscal year 2025/26, sharply outpacing last year’s modest growth, according to Nepal Rastra Bank. In dollar terms, inflows rose 29 per cent to USD 6.16 billion, boosting net secondary income and significantly strengthening foreign exchange reserves. Gross forex reserves expanded nearly 20 per cent, sufficient to cover over 21 months of imports. Meanwhile, inflation eased markedly, falling to 1.63 per cent by mid-December, driven largely by declining food prices, reflecting reduced price pressures across most provinces.

Minister Sinha Calls for Competition, Transparency as Nepal Oil Marks 56 Years:
Industry, Commerce, and Supplies Minister Anil Sinha stated that monopolies should not persist indefinitely and emphasized the need for competition. On the occasion of Nepal Oil Corporation Limited’s 56th anniversary, he noted that the long-delayed ethanol policy has only reached the decision stage and requires further study and research in its initial phase. Stressing institutional governance, he cited the GENJI demonstration on Bhadra 23–24 as an example. “No employee should receive benefits contrary to the law, nor should they accept less than the legally mandated services,” he said. Minister Sinha called for transparency and zero tolerance for corruption in the new building. Executive Director Dr. Chandika Bhatt highlighted that the corporation has always met fuel demand, reporting last year’s turnover of NPR 36.7 billion with a profit of NPR 1.3 billion, contributing NPR 12.4 billion in revenue to the government. He added that the corporation supplied 63,000 kiloliters of petrol, 120,000 kiloliters of diesel, 2,000 kiloliters of furnace oil, 18,000 kiloliters of aviation fuel, and 46,000 tons of LPG annually.

Bus Service Slashes Travel Costs from Humla’s Simkot to Kathmandu:
The launch of regular passenger bus services from Simkot in Humla district has significantly reduced travel fares to Kathmandu and Nepalgunj. Previously, travelers depended on bolero jeeps and were forced to pay high, arbitrary fares. With buses now in operation, jeep operators have been compelled to lower their rates. While passengers earlier paid up to Rs 10,000 to reach Nepalgunj by jeep, the bus fare has been fixed at Rs 5,500. The fare from Simkot to Kathmandu has been set at Rs 7,500. Transport operators say standardized fares will prevent overcharging and ease travel for residents.

Crop Insurance Absent in Ilam Despite Heavy Losses and Government Priority:
Despite government emphasis on agricultural insurance, crop insurance remains virtually non-existent in Ilam, leaving farmers unprotected against losses. Cash crops such as tea, cardamom, ginger, fruits and food grains are uninsured, even after floods and landslides last year caused nearly Rs 250 million in damage. Farmers say insurance companies are reluctant to insure crops, while awareness and claim procedures remain weak. Studies show none of the disaster-affected farmers in Ilam had crop insurance. Although the government offers an 80 per cent premium subsidy, officials and insurers admit the scheme has been ineffective. Authorities now stress the need for policy reform and farmer awareness to expand coverage.

Onion Seedlings Power New Livelihoods for Koshi Flood-Affected Farmers:
For farmers displaced by the devastating Koshi floods 15 years ago, onion seedlings have emerged as a reliable source of income. In erosion-prone areas of Koshi Rural Municipality in Sunsari, where paddy and wheat perform poorly, more than 100 farmers are now earning between Rs 100,000 and Rs 300,000 per season by selling onion seedlings. Growing demand from Sunsari and neighbouring districts has encouraged farmers to cultivate seedlings specifically for sale. With minimal land and investment, seedling farming has transformed fragile riverbank areas into productive assets, offering steady livelihoods to families once dependent on unstable agriculture.

Indian Artisans Fill Jobs Gap as Thousands of Nepalis Leave Country Daily:
As nearly 1,500 Nepalis leave the country daily in search of work, Indian artisans crossing the open border are finding steady income opportunities in Nepal. Skilled idol makers from India’s Kumal (Pandit) community arrive for about three months to produce clay and straw idols used in festivals such as Saraswati Puja, Bishwakarma Puja and Siruwa Fair. Earning between Rs 80,000 and Rs 100,000 per season, they sell idols priced from Rs 1,500 to Rs 7,000 across villages and schools nationwide. With many Nepalis migrating abroad and traditional pottery declining, Indian craftsmen have come to dominate the seasonal idol-making trade in Nepal.

Hotel Boom Transforms Ramite into Emerging Hill Tourism Hub of Morang:
Over the past two years, Ramite in northern Morang has witnessed a rapid tourism boom, with 18 small and large hotels coming into operation following improved road access. Located just 22 km north of the East–West Highway, the hill settlement attracts visitors seeking cool summers and warm winter sunshine. Growing tourist inflows have boosted local employment, curbed out-migration and expanded agriculture and livestock trade. Hotel investments alone are estimated at Rs 250–300 million. Locals now sell farm produce directly from their villages, while businesses and markets have flourished. With only a short stretch of road yet to be blacktopped, Ramite is poised to emerge as a major tourism destination in Koshi Province.

Mechanisation and Lack of Jobs Drive Rishidev Community into Poverty and Migration:
Mechanisation in agriculture has stripped the Rishidev (Musahar) community of its traditional livelihoods, leaving many families in Morang district impoverished. Generations once survived through earthwork, pond-digging, and manual labour, but tractors, excavators, and JCBs have eliminated these jobs. With little land, no alternative skills, and limited local opportunities, many young and elderly now migrate to India or other countries, often disappearing without a trace. Those who return face illness or hardship. Community members report lost income, fractured families, and inadequate government support, highlighting the deep social and economic vulnerability of this historically marginalised group.

19-Year-Old Arrested for Fraudulent eSewa Transactions Totaling Over Rs 1.12 Crore:
Police in Kathmandu have arrested 19-year-old Kramik Upreti from Kirtipur-7 for allegedly misusing company documents to conduct illegal financial transactions via eSewa. Authorities say Upreti exploited Wide-Space International Pvt. Ltd.’s permanent account number (PAN) to open eSewa merchant and personal wallets, conducting Rs 56.33 lakh through the merchant wallet and Rs 56.32 lakh through his personal wallet. The total illegal transactions exceeded Rs 1.12 crore, reportedly for betting and other unauthorized purposes. Police recovered a laptop, multiple mobile phones, 20 SIM cards, a pen drive, and a memory card from him. Upreti has been sent to Bhadrapur Police for further investigation on banking and gambling-related offenses.