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 9 Points as Daily Turnover Reaches Rs 8.92 Billion

The Nepal Stock Exchange (NEPSE) index declined by 9.43 points on Wednesday, closing at 2,705.38 points. Market activity remained high with a total turnover of Rs 8.92 billion from the trade of 21.6 million shares. While the Others sub-index saw a marginal gain of 0.26 percent, all other sectors ended in the red, with Hotel and Tourism dropping 1.88 percent. Kalika Power Company Limited recorded the highest gain of 9.84 percent, while Ankhu Khola Hydropower led in transaction volume, totaling Rs 433.6 million.

Finance Ministry Releases Rs 19.21 Billion for Elections

The Ministry of Finance released Rs 19.21 billion to fund the March 5 parliamentary elections. According to the Ministry of Finance, some Rs 10.39 billion was allocated to the Home Ministry, Rs 6.72 billion to the Election Commission, and Rs 1.99 billion to the Defense Ministry. The government plans to mobilize over 188,000 security personnel, including 147,000 temporary election police. Although the Election Commission estimated a total cost of Rs 27 billion, current releases cover essential security, logistics, and administrative preparations for the nationwide polls.

NRB Withdraws Rs 20 Billion from Banking System

Nepal Rastra Bank (NRB) withdrew Rs 20 billion from the banking system on Wednesday to manage excess liquidity. The NRB utilized a deposit collection instrument with a 63-day maturity period. This move follows the recent issuance of nine bonds that absorbed Rs 200 billion over the last two weeks. Class A, B, and C financial institutions participated in the online bidding process, which concluded at 2:00 PM. The NRB frequently uses these tools to stabilize interest rates and manage the surplus cash currently held by commercial banks due to sluggish private-sector credit demand.

Foreign Employment Surge Sees 31,750 Nepalis Depart in One Month

Over 31,750 Nepali workers left for foreign employment in the month from December 16, 2025 to January 15, marking an increase of 2,132 compared to the previous month. According to the Department of Foreign Employment, departures included 27,530 men and 4,220 women. Saudi Arabia remained the top destination with 7,222 workers, followed by Qatar at 4,523 and Malaysia with 3,587. Migration trends are stabilizing following the disruptions caused by the Gen Z protests on September 8 and 9, 2025. Additionally, 30,809 individuals received labor permit renewals during this period to work in 90 different countries.

National Public Debt Reaches Rs 2.806 Trillion

The country’s total public debt surged to some Rs 2.806 trillion by January 15. The Public Debt Management Office noted a rise of Rs 132.34 billion since the start of the current fiscal year. External debt accounts for 53 percent (Rs 1.487 trillion), while internal debt makes up 47 percent (Rs 1.319 trillion). Total debt now stands at 45.95 percent of the GDP. In the first six months, the government spent Rs 187.12 billion on principal and interest payments, representing 45.53 percent of the annual repayment budget.

External Debt Recovery Lags at 15.7 Percent of Annual Target

The government received only Rs 36.89 billion in external debt during the first six months of fiscal year 2025/26, hitting just 15.79 percent of its Rs 233 billion annual target. According to the Public Debt Management Office, the shortfall is due to poor project implementation and delayed construction of major infrastructure. Consequently, the government relied heavily on domestic borrowing, raising Rs 177 billion internally. While high liquidity in the banking sector has kept domestic interest rates low, experts warn that excessive internal borrowing could limit credit availability for the private sector if market conditions shift later this year.

Banks Slash Operational Costs to Rs 16.56 Billion

Commercial and development banks spent Rs 16.56 billion on office operations in the first five months of the fiscal year, a slight decrease of 0.87 percent from last year. This reduction follows a Nepal Rastra Bank policy encouraging branch mergers and cost-cutting strategies. Global IME Bank recorded the highest operational expenditure at Rs 1.31 billion, followed by Nepal Investment Mega Bank at Rs 1.2 billion. Conversely, NIC Asia Bank saw a significant 22.93 percent reduction in costs. Development banks, led by Muktinath Bikas Bank, saw costs rise by 6.43 percent to Rs 1.92 billion.

Govt. Proposes New Five-Year Labor Agreement with Israel

The Ministry of Labour, Employment, and Social Security has sent a draft proposal to Israel for a new five-year labor agreement covering the agriculture and caregiver sectors. Following a Cabinet decision, the government aims to send workers under the “Learn and Earn” program for farming and long-term caregivers for the elderly. According to the Ministry of Labor, Employment, and Social Security, the move is notable, given that approximately 5,000 Nepalis currently work in Israel. The proposal follows the suspension of agricultural internships after ten Nepali students were killed in a 2023 conflict. The new agreement seeks to formalize safety protocols and expand institutional job opportunities.

Saudi Arabia’s Saudization Policy Threatens Migrant Professional Roles

Saudi Arabia has intensified its “Saudization” policy, mandating that private firms fill 30 to 46 percent of engineering and technical roles with local citizens within six months. This shift endangers the jobs of thousands of migrants, including Nepali engineers and administrative staff, as companies stop renewing visas for foreigners. The policy targets administrative, health, and technical sectors, with some retail and human resource roles now reserved 100 percent for Saudis. Experts warn that as Saudi citizens become more skilled, opportunities for foreign labor will shrink, potentially reducing the annual intake of over 100,000 Nepali workers who typically seek employment there.

Lumbini Paddy Production Hits 1.3 Million Metric Tons

Lumbini Province produced around 1.3 million metric tons of paddy across its 12 districts during fiscal year 2025/26. According to the Directorate of Agriculture Development, Lumbini Province, farming covered 299,588 hectares. Despite the volume, overall production declined compared to the previous year due to initial droughts and subsequent unseasonal rains that caused Rs 135 million in crop damage. Kapilvastu emerged as the top producer with 305,760 metric tons, followed closely by Rupandehi at 290,292 metric tons. In contrast, Rukum Purba recorded the lowest output at 1,193 metric tons due to limited arable land.

Authorities Fine and Warn 31 Firms for Consumer Fraud

The Department of Commerce, Supplies, and Consumer Protection intensified market monitoring, taking action against 31 business firms on Tuesday. Khilung Kalika Marketing in Suryabinayak-2 was fined Rs 50,000 for violating the Consumer Protection Act, 2018. Additionally, the department directed Hellos Mart, One Store Mobile, and Abhas Trading Company to appear with documentation within three days. Other warnings were issued to 27 entities, including Mali Oil Store, Butcher Nepal, and several poultry farms, to rectify operational deficiencies and adhere to quality standards.

State-Funded Agriculture Farms in Mugu Fall into Neglect

Dozens of agriculture farms in Mugu, established with provincial and federal subsidies, have been abandoned within a year of receiving funds. The Agriculture Development Office of the district reported that projects in Khatyad Rural Municipality, Soru Rural Municipality, and Chhayanath Rara Municipality are now covered in weeds. Local residents and civil society leaders criticized the government for providing grants to “fake farmers” based on political access rather than technical merit. Although buildings like cellar stores were constructed, they are being used as residences instead of for storing produce. Officials attributed the failure to a lack of monitoring and damage from landslides and floods.

Gold Price Surges by Rs 10,400 Per Tola Today

The local market witnessed a massive hike in gold prices on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has increased by Rs 10,400 per tola (11.66 grams), reaching Rs 295,100. On Tuesday, gold was traded at Rs 284,700 per tola. Similarly, the price of silver has risen by Rs 40 per tola to reach Rs 5,920. The federation stated that silver was priced at Rs 5,880 on Tuesday.