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 Surges by 57.55 Points as Market Records Rs 13.785 Billion Turnover

The share market opened the week with significant gains on Sunday, with the Nepal Stock Exchange (NEPSE) index rising by 57.55 points, or 2.12 percent, to reach 2,772.17 points. The Sensitive Index also climbed 1.73 percent to 473.48. A total of 30,915,183 shares from 331 companies were traded across 133,529 transactions, resulting in a turnover of Rs 13.785 billion. All 13 sub-indices turned green, led by the hotel and tourism sector at 3.35 percent growth. Eight companies, including Ankhu Khola Hydropower, hit the positive circuit limit of 10 percent, while Ankhu Khola also recorded the highest individual turnover of Rs 435.9 million.

Govt. Removes Maximum Limit for Automatic Foreign Investment

The Cabinet has approved a first amendment to the Foreign Investment and Technology Transfer Regulations 2020, removing the Rs 500 million upper limit for the automatic investment route. Previously, investments exceeding this amount required manual approval from the Department of Industry. According to the department, investors in energy, agriculture, tourism, and IT can now secure approvals online from home for any amount. In the first half of 2025/26, Nepal received Rs 39.23 billion in FDI commitments across 475 projects, with Rs 7.47 billion actually entering the country.

Mobile Phones Worth Rs 23 Billion Imported in Six Months

Data from the Department of Customs reveals that the country imported 1,252,634 mobile phone devices worth Rs 23.298 billion from 50 countries in the first half of the current fiscal year. This trade generated Rs 4.345 billion in revenue. China remains the top supplier with 1,061,045 units worth Rs 18.52 billion, followed by India with 186,703 units worth Rs 4.45 billion. Other imports arrived from the USA, UAE, Australia, and Japan. Rising smartphone demand is attributed to foreign employment trends and expanded internet accessibility.

Nepal and India Accelerate Rs 15 Billion Petroleum Pipeline Projects

Nepal Oil Corporation (NOC) is fast-tracking petroleum and LPG pipeline projects with India. Executive Director Chandika Prasad Bhatta confirmed that the 62-km Amlekhgunj-Chitwan and 50-km Siliguri-Jhapa pipelines, costing Rs 15 billion, will be funded by Indian Oil Corporation (IOC) grants. NOC will spend Rs 8 billion on a storage facility in Chitwan. Additionally, a Rs 12 billion LPG pipeline from Motihari to Sarlahi is proposed to save Rs 6 billion in annual transport costs. These projects aim to ensure fuel security and reduce prices in the Koshi province.

Finance Minister Reduces Cash Transaction Limits to Curb Black Money

Finance Minister Rameshore Khanal announced a reduction in legal cash transaction limits to control opaque financial dealings. Speaking at the 61st anniversary of Rastriya Banijya Bank in Kathmandu, Khanal emphasized that certain sectors are still used to launder black money. He urged a transition from physical currency to virtual currency and from physical to virtual banking access. Additionally, the Ministry of Finance is consulting with Nepal Rastra Bank to shift from collateral-based lending to enterprise and capacity-based investment models to strengthen the financial sector’s integrity.

Koshi Province Signs Contribution-Based Pension Pact with EPF

The Koshi Province Government and the Employees Provident Fund (EPF) signed an agreement to manage contribution-based pensions for provincial and local civil servants. Secretary Koshhari Niraula and EPF Administrator Jitendra Dhital finalized the pact following the Contribution-Based Pension Fund Act 2026. Applicable to employees appointed after July 17, 2019, the scheme involves a 6 percent salary deduction matched by the employer. This partnership aims to reduce the state’s long-term pension burden while creating a capital pool for provincial infrastructure projects like hydropower and national pride works.

Federal Capital Spending Reaches 33.90 Percent Amid Provincial Lag

By January 14 of the fiscal year 2025/26, federal government expenditure reached 33.90 percent, a significant improvement from 14.32 percent last year. However, provincial capital spending remains low at 14.10 percent. In Dang, the federal government spent Rs 1.81 billion out of Rs 5.35 billion, while provincial offices spent only Rs 367.9 million of their Rs 2.60 billion development budget. Delays are blamed on the Gen Z protest, staff transfers in August, and slow tendering processes, with many projects still stuck in the contract phase.

Govt. Studies 328 MW Barbung Hydropower Project in Dolpa

The Department of Electricity Development has initiated environmental and technical studies for the 328 MW Barbung Hydropower Project in Dolpa. The reservoir-type project, located in the Chharka Tangsong and Kaike rural municipalities, is estimated to cost Rs 103.31 billion. It features a 169-meter dam and a 16-km headrace tunnel, targeting an annual output of 933.19 GWh. Separately, the 32 MW Karuwa Seti project in Kaski is undergoing a revised environmental assessment due to structural changes within the Annapurna Conservation Area involving 9.65 hectares of forest land.

The Kanti Highway Project Remains Unfinished After Seven Decades

The 79-km Kanti National Highway, a shortcut connecting Kathmandu and Hetauda, remains incomplete 70 years after construction began in the fiscal year 1955/56. Though 75 percent finished, 4 km of blacktopping is pending due to rock cutting for two-lane expansion. Engineer Rajan Pandey cited budget shortages and geographical hurdles for the delay, targeting completion by the first month of the fiscal year 2026/27. A 90-meter bridge over the Bagmati River is currently under construction for Rs 180 million. Once functional, the route will reduce the Hetauda-Kathmandu distance to 79 km, saving significant time and fuel compared to the 222-km Narayanghat route.

Sanga Underpass Construction Reaches 45 Percent Physical Progress

Construction of the 1,110-meter underpass at Sanga, the border of Bhaktapur and Kavre, has reached 45 percent completion. Part of the Suryabinayak-Dhulikhel road expansion, the project includes a 900-meter approach road in Bhaktapur and 190 meters in Banepa. The structure will be 6 meters high and 10.5 meters wide. The 15.8 km highway is divided into two contracts totaling Rs 7.945 billion. While the initial deadline was January 2024, it has been extended to mid-March 2027 to complete the Rs 3.88 billion Sanga section.

Gen Z Protests Limit Capital Expenditure in Jumla to 9.4 Percent

In the first five months of the fiscal year 2025/26, Jumla spent only 9.4 percent of its Rs 1.118 billion capital budget. According to the District Administration Office, Jumla, recurrent expenditure stood higher at 15.19 percent. The Provincial Treasury and Controller Office attributed the sluggish development spending to the Gen Z protests on September 8 and 9, 2025, which damaged government structures and disrupted administrative operations. Out of 12 provincial offices, the Infrastructure Development Office led with 19.33 percent financial progress, totaling Rs 91.1 million.

Korala Border Customs Collects Rs 5.54 Billion

The Mustang Customs Office at Nechung has collected Rs 5.54 billion in revenue as of January 23. Despite extreme cold and heavy snowfall at the 4,650-meter-high Korala border pass, containers and Electric Vehicles (EVs) from Tibet continue to arrive. According to the customs office, at least 2,329 EVs have been imported since the border opened commercially on September 15, 2025. Total trade reached Rs 11 billion in imports and Rs 200 million in exports, including handicrafts and clothing. Workers must break ice on the 14-km stretch between the border and the office to move goods.

Koilabas Customs Misses Six-Month Revenue Target by Rs 800K

The Koilabas Customs Office collected Rs 7.6 million in the first six months of the current fiscal year, falling short of its Rs 8.4 target by Rs 873,000. According to the customs office, while mid-December 2025 to mid-January saw a surplus collection of Rs 3.3 million due to Indian tourists, overall performance remained at 89.72 percent. Revenue was hampered by strict Indian border security measures, which discouraged travelers. The office primarily earns from temporary vehicle entry fees, which are Rs 600 for cars and Rs 200 for motorcycles, as large-scale commercial trade via this route remains inactive.

Orange Production in Gorkha Increases by 15 Percent

Gorkha district recorded a 15 to 20 percent increase in orange production this year, totaling 3,187 metric tons. Information Officer Pooja Regmi of the National Agriculture Modernization Project stated that farmers earned approximately Rs 220 million from oranges and Rs 15 million from lemons. The growth is attributed to favorable weather and new trees beginning to bear fruit. The government has declared specific wards in Gandaki, Sahid Lakhan, and Gorkha municipalities as Orange Zones to provide technical support and small irrigation infrastructure. Currently, orange farming covers 1,097 hectares in the district, involving over 300 farmers.

Egg Prices Rise as Election Demand and Production Costs Surge

The Nepal Poultry Federation increased egg prices effective Sunday due to high demand ahead of the March 5 elections. A large crate (30 eggs) now costs Rs 495, up from Rs 465, while medium crates rose to Rs 475. Strict border controls and reduced poultry populations as key drivers. Despite the hike, the current price remains below the production cost of Rs 574 per crate (Rs 19.12 per egg). Farmers hope prices will continue to rise toward the record Rs 565 per crate seen last November.

Gold, Silver Prices Set New Record

Gold and silver prices reached record highs in Nepal on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold surged by Rs 2,400 to reach Rs 303,800 per tola (11.66 grams). This marks the first time gold has crossed the Rs 300,000 milestone in the domestic market. Similarly, silver prices rose by Rs 290 to Rs 6,480 per tola. In the international market, gold was traded at USD 4,987 per ounce. The sharp rise in this month has been attributed to global market fluctuations and increased local demand during the wedding season.