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 Reduces Loan Upgrade Period to Three Months for Defaulters

Nepal Rastra Bank (NRB) has issued a new directive allowing non-performing loans to be upgraded to the “good” category just three months after the full payment of principal and interest. Previously, borrowers had to wait six months under a “watch list” before their credit status could improve. This policy shift aims to provide relief to debtors and improve bank balance sheets. Additionally, the NRB now permits microfinance institutions to use 50 percent of their Customer Protection Fund to support families of clients affected by natural disasters or accidents. These measures are expected to boost credit flow and support the recovery of troubled businesses.

SEBON Lowers Mutual Fund Seed Capital Requirements to 5 Percent

The Securities Board of Nepal (SEBON) has amended the Mutual Fund Regulations, 2010, to reduce mandatory seed capital for fund managers. While the first scheme requires 15 percent, subsequent schemes may now only require 10 percent or 5 percent seed capital based on the manager’s performance and ratings. SEBON believes this move will encourage fund managers to improve quality and compliance while increasing market participation. To mitigate risks associated with larger fund sizes, the board has mandated “stress tests” and the implementation of strict risk management policies. This policy shift is expected to strengthen the secondary market and enhance investor confidence.

Ministry Replaces Failed PMEP with National Employment Initiative

The Ministry of Labor, Employment, and Social Security has officially scrapped the controversial Prime Minister Employment Program (PMEP), replacing it with the National Employment Promotion Program Guidelines, 2025. Approved a month ago, the new directive aims to implement the Internal Employment Promotion Decade (2025-2035) declared by KP Sharma Oli. The program targets unemployed youth and returnee migrants across all 753 local units, focusing on skill development and entrepreneurship rather than low-productivity manual labor. Funding will be provided through federal grants and development partners to ensure sustainable job creation and domestic labor market growth.

National Paddy Production Forecasted to Fall by 4.20 Percent

The Ministry of Agriculture and Livestock Development has projected a decline in paddy production by 250,350 metric tons compared to last year. Total production for the current year is estimated at around 5.7 million metric tons, a 4.20 percent decrease from the previous 5.9 million metric tons. The cultivation area also shrank by 3.8 percent to around 1.3 million hectares. Information Officer Mahananda Joshi attributed the decline to drought in Madhesh Province, youth migration, and the conversion of agricultural land for industrial use. Despite the adequate availability of fertilizers and seeds, adverse weather conditions significantly impacted overall productivity across the country.

Nepal Telecom Cancels Controversial Rs 5 Billion Billing System Tender

Nepal Telecom has officially canceled a disputed tender worth approximately Rs 5 billion for a new convergent real-time billing system. The decision, announced on Monday, coincides with the transfer of Communication Secretary Radhika Aryal. The procurement process faced intense criticism for “vendor lock-in” tactics allegedly favoring the Chinese firm Huawei. An investigation led by former Secretary Maniram Gelal concluded that technical criteria were manipulated to limit competition. Spokesperson Rabinman Manandhar stated that the company will now revise the documents based on expert suggestions before initiating a new international bidding process to ensure transparency and better cybersecurity.

Bagmati Province Collects Rs 17.435 Billion in Revenue

Bagmati Province collected some Rs 17.435 billion in revenue during the first half of fiscal year 2025/26, achieving 25.84 percent of its annual target. Revenue sources, including land registration and vehicle taxes, contributed some Rs 9.725 billion. Specifically, land registration brought in Rs 2.16 billion, while vehicle taxes accounted for Rs 2.638 billion. The ministry noted that economic liquidity issues and damages sustained during the Gen Z protests on September 8 and 9, 2025, hindered the province from reaching its expected collection goals.

Sudurpashchim Capital Expenditure Slumps to 5 Percent in Six Months

The Sudurpashchim Province government spent only 5.08 percent of its capital budget during the first half of fiscal year 2025/26. According to the Provincial Treasury Controller Office, only Rs 1.7 billion was utilized out of the Rs 19.83 billion allocated for infrastructure. Chief Minister Kamal Bahadur Shah’s directive to submit progress plans within 15 days on December 29, 2025, has reportedly been ignored by several ministries. Economic Affairs Minister Bahadur Singh Thapa attributed the delay to the Gen Z protests, which resulted in the burning of essential office documents and administrative stagnation.

Real Estate Revenue Increases by Rs 1.11 Billion

Revenue from land transactions increased by Rs 1.11 billion during the first six months of the current fiscal year compared to the same period last year. The Department of Land Management and Archive reported total collections of Rs 21.954 billion from 702,000 transactions. Although the number of transactions fell by 7,000, revenue rose due to the government’s decision to ease land plotting. Monthly data shows a peak last month with Rs 5.17 billion collected. According to the Nepal Land and Housing Developers’ Federation, the market is recovering, but it remains below the levels seen three years ago.

Bhaktapur Hospital to Build New Rs 620 Million Facility

Bhaktapur Hospital, established 121 years ago, is set to receive a new modern building with a Rs 620 million investment from the Bagmati Province government. According to Health Minister Kiran Thapa, the approval of the Detailed Project Report (DPR) for the facility, which will feature earthquake-resistant traditional architecture. The hospital aims to become a model provincial referral center, introducing specialized heart and neuro services. The building will include advanced ICU, NICU, and digital imaging departments. Construction will take place on existing hospital grounds to upgrade current administrative and inpatient services.

Nepal Life Samriddhi Investment Scheme Opens with Rs 1.60 Billion

Nepal Life Capital has opened the sale of units for its new mutual fund scheme, Nepal Life Samriddhi Investment Scheme, starting today. The closed-end scheme, promoted by Nepal Life Insurance Company, has issued 160 million units at a face value of Rs 10 per unit, totaling Rs 1.60 billion. While 15 percent is reserved as seed capital, the remaining 136 million units are available for the public. Investors can apply for a minimum of 100 units until January 22. The fund has a maturity period of 10 years.

Gold and Silver Prices Hit New Record Today

Gold and silver prices set new records on Monday. The price of gold increased by Rs 4,200 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, gold has been fixed at Rs 282,000 per tola for the day. On the previous day, gold was traded at Rs 277,800 per tola. Earlier, last Wednesday, gold had set a record high of Rs 278,000 per tola. That record was broken on Monday. Silver prices also reached a new high. Silver, which was traded at Rs 5,625 per tola the previous day, rose by Rs 185 to reach Rs 5,810 per tola on Monday. Previously, silver had recorded its highest-ever price of Rs 6,655 per tola last Wednesday.