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:

Govt. Investment in Public Entities Reaches Rs 930 Billion

As of the last fiscal year, 2024/25, the government’s total investment in 159 public enterprises and bodies, in the form of shares and loans, reached Rs 930.88 billion. According to the Public Debt Management Office, total share investment in 116 institutions stood at Rs 404.814 billion. The largest share investments are in the Nepal Electricity Authority (NEA), Civil Aviation Authority of Nepal (CAAN), Nepal Telecom, Rastriya Banijya Bank, and Agricultural Development Bank.

NEA Automates Seven Old Grid Substations to Modernize System

The Nepal Electricity Authority (NEA) has automated seven of its older grid substations (Panchkhal, Banepa, Patan, Lainchaur, Balaju, Chapali, and Bhaktapur), marking a strategic move towards a modern, automated, and smart power system. These substations are now operated from a new control room in the NEA building in Minbhawan. The full automation will minimize power disruptions, reduce operating and maintenance costs, and improve load management. The Rs 610 million project, which includes the automation of 13 substations in total, is financed by a concessional loan from the Asian Development Bank.

Nepal Pushes Forward with Domestic Funding for Upper Arun Project

The government is moving ahead with a domestic investment model for the 1,063 MW Upper Arun Hydropower Project due to continued uncertainty over funding from the World Bank. The total estimated cost for the project in Sankhuwasabha’s Bhotkhola Rural Municipality is USD 1.75 billion (Rs 214 billion), including construction interest and inflation. The model proposes raising 70 percent from debt and 30 percent from equity. The equity will be split between 51 percent institutional founders (Rs 36.67 billion) and 49 percent public shareholders (Rs 35.23 billion).

Tilaganga Hydropower Project Estimated to Cost Rs 7.567 Billion

The 38.07 MW Tila Hydroelectric Project, set to be built on the border of Tila Rural Municipality, Jumla, and Tilagupha Municipality, Kalikot, is estimated to cost Rs 7.567 billion. The project involves constructing a 7-meter-high dam on the Tila River and channeling water through a 289-meter-long steel penstock pipe to a powerhouse that will house the 38.07 MW capacity. The electricity produced will be connected to the Jumla Bazaar substation via a 132 kV single-circuit transmission line. The project requires 7.585 hectares of land and is expected to create 30 to 320 direct local jobs during the construction period.

AmCham Nepal Discusses US Investment Potential

The American Chamber of Commerce in Nepal (AmCham Nepal) hosted discussions in Washington, D.C., about the potential for U.S. investment in Nepal. The event included representatives from the U.S. Department of State, the Department of Commerce, and the U.S. Chamber of Commerce. AmCham Nepal highlighted that Nepal has the potential for USD 10 billion in investment in the hydropower sector, with 92 percent of its capacity still undeveloped. Both sides agreed to organize a follow-up webinar and conduct roadshows in the U.S. to attract investors.

High-Value INR Notes Now Valid in Nepal & Bhutan

The Reserve Bank of India (RBI) has granted permission for Indian currency notes above the INR 100 denomination to be used in Nepal and Bhutan. This reverses the post-demonetization ban from November 2016. According to the notification published in the Indian Gazette, Nepali and Indian citizens traveling between the two countries can now carry up to INR 25,000 in cash, including notes above INR 100. Nepal Rastra Bank (NRB) announced that the NRB will formally issue a notification to implement the decision but stressed that the large denomination notes affected by the 2016 ban will remain invalid.

IndiGo Flight Chaos in India Disrupts Nepal Flights

The operational chaos faced by IndiGo Airlines in India has directly impacted Nepal-to-India flights, despite the airline’s claim that cancellations are unlikely in Nepal. On Thursday, December 4, flight 6E-1155 from Delhi that was scheduled to land at 4:00 PM did not arrive in Kathmandu until 7:30 PM. The airline’s on-time performance had dropped to a low of 35 percent on Tuesday, December 2. According to IndiGo’s Nepal officials, the flight delays are due to an emergency software update for Airbus A320 family aircraft, which affected the crew-scheduling system.

License Renewals Halted for 126 Manpower Agencies of JITCO

The license renewal process for 126 manpower companies specializing in sending workers to Japan has been halted for four months due to a lack of coordination between the Department of Foreign Employment and the Ministry of Labor, Employment, and Social Security. The delay stems from the process of revoking the outdated 2009 directive, which was based on the defunct Japan International Training Cooperation Organization (JITCO) model. The issue is compounded by confusion over new legal provisions, despite the companies having already paid the renewal fees.

Karnali Ban to Reduce Expenditure in Effect

The Karnali Province government has banned the holding of official programs in hotels to curb increasing expenditure, effective this month, as per the Karnali Province Expenditure Standards, 2025. Economic Affairs and Planning Secretary Yagya Puri stated that generally, programs are prohibited in hotels. However, if absolutely necessary for hosting VIP guests or development partners, permission must be obtained from the Chief Minister’s Office. The new standard also mandates that no meeting allowance will be provided for meetings held during office hours, though participants may receive up to Rs 300 for snacks.

Bagmati Province Slashes Dolakha Infrastructure Budget by Up to 30%

The Bagmati Province government has cut the current fiscal year 2025/26 budget for infrastructure in Dolakha by up to 30 percent, amounting to over Rs 350 million across four key government offices. The largest cut, Rs 28.8 million, was made to the Dolakha Infrastructure Development Office, which had an initial allocation of Rs 1.487 billion. The drastic reduction is expected to impact vital projects related to roads, drinking water, and irrigation. Contractors for the problematic Mude-Baghkhore-Shailung and Bhatmas-Jilu roads have been fined since November 17 for failing to meet repeated deadlines.

Karnali Province Sets Vehicle and Mobile Price Limits for Officials

The new Karnali Province expenditure standard establishes maximum purchase prices for vehicles and mobile devices for officials. The maximum price for a vehicle for the Chief Minister and the Speaker is capped at Rs 15 million. For ministers and the deputy speaker, the limit is Rs 12 million. The Chief Secretary and Province Secretaries are allocated mobile sets costing up to Rs 30,000 and Rs 25,000, respectively. Additionally, foreign training, study, or travel at the province’s expense requires mandatory Cabinet approval, with a limit of five participants per trip.

Construction Projects in Sudurpaschim Begin Eight Months After Approval

Construction has finally begun on infrastructure projects in the Sudurpaschim Province that received multi-year contract approval eight months ago. The delay, which pushed the start of work to this very month, is attributed to the lack of pre-work preparations, such as approved designs and cost estimates, before the initial budget allocation, a trend driven by political pressure. Chief Minister Kamal Bahadur Shah laid the foundation stone for seven such projects (five roads and two bridges) on Thursday, December 4, which were originally scheduled to begin implementation from the first month of the current fiscal year.

NBA Appoints Four New Executive Members

The Nepal Bankers’ Association (NBA), the umbrella organization of commercial banks, selected four new members to its Executive Committee during its annual general meeting on Wednesday. The new members are Ram Kumar Tiwari (CEO of Nepal SBI Bank), Manoj Gyawali (CEO of Nabil Bank), Ajay Bikram Shah (CEO of Laxmi Sunrise Bank), and Sanjiv Manandhar (CEO of Prime Bank), who was re-elected for a second term. The election was held to fill the vacant seats left by the outgoing members.

International Tourist Arrivals in Lumbini Drop

A total of 19,509 international tourists from third countries (excluding India) visited Lumbini in November. While this is an increase of nearly 1,000 compared to November 2024 (18,539), it remains significantly lower than the 26,772 arrivals recorded in pre-COVID November 2019. The total arrivals from third countries from January to November 2025 stand at 105,779. The largest number of foreign visitors in November came from Sri Lanka (4,352), followed by Thailand (2,665), China (1,766), and Vietnam (1,661).

Domestic and Indian Tourist Arrivals Decrease in Lumbini

Lumbini also saw a decrease in domestic and Indian tourist arrivals in November 2025 compared to the same period last year. 30,072 Indian tourists visited, which is about 2,500 fewer than the 32,468 recorded in November 2024. Domestic tourist arrivals also fell sharply, with 87,740 visitors in November 2025, a drop of 82,000 from the 169,575 recorded in November 2024. Overall domestic arrivals from January to November 2025 totaled 640,279.

27th Pokhara Street Festival to Run for Five Days in January

The 27th edition of the Pokhara Street Festival, organized by the Restaurant and Bar Association Nepal (REBAN) Pokhara, will take place in Pokhara from December 28 to January 1, 2026, to celebrate the English New Year. The festival, which will span approximately 3 kilometers, will feature national and international cuisine, live concerts, boat races, waiter races, and street dramas, under the slogan “Eat on the Street, Enjoy on the Street.” REBAN President Bishwaraj Paudel noted that the festival significantly contributes to local economic activity, foreign currency earnings, and job creation.

Manaslu Conservation Area Revenue Exceeds Rs 80 Million

The Chumanubri Rural Municipality in Northern Gorkha collected Rs 80 million in revenue from both internal and external tourists visiting the Manaslu Conservation Area (MCAP) in the first four months of the current fiscal year 2025/26. The total revenue was generated by 7,900 foreign and 950 domestic tourists. This increase is attributed to the rising popularity of the Manaslu trekking route. The municipality plans to allocate an additional Rs 23 million of the collected revenue for infrastructure development, including trail and bridge construction, and heritage conservation.

Tanahun District Sees Increase in Milk Production and Livestock

Milk production in Tanahun district increased in the last fiscal year, reaching 74,755 metric tons in the fiscal year 2024/25, a rise of 1,182 metric tons from the 73,572 metric tons produced in the fiscal year 2023/24. According to the Veterinary Hospital and Livestock Service Expert Center, the increase is due to government subsidy programs that have attracted farmers to livestock farming. The number of milking cows and buffaloes in the district increased by 304 and 261, respectively. The district is self-sufficient in milk, meat, and eggs, but only 0.28 kg of fish is available per capita, against a required seven kg.

Paddy Production Rises in Tanahun District Despite Crop Damage

Paddy production in Tanahun district increased this year compared to the last fiscal year. According to the Agriculture Development Office, 35,422 metric tons of paddy were produced from 8,512 hectares, up from 33,292 metric tons harvested from 8,120 hectares last year. However, the office noted that unseasonal rain recently caused Rs 10 million worth of damage to the crops. Despite the overall increase, 13,551 hectares of cultivable land in the district remain fallow.

Tanahun Distributes Rs 9.7 Million in Milk Subsidies

The Veterinary Hospital and Livestock Service Expert Center in Tanahun distributed Rs 9.7 million in subsidies to milk-producing farmers in the fiscal year 2024/25 through 11 cooperatives. This amount is more than double the Rs 4.3 million distributed in the previous fiscal year, 2023/24. The subsidy, provided at a rate of Rs 3 per liter, is based on production volume, a policy intended to encourage and attract farmers to increase milk output.

River Erosion Control Project Begins on Kaligandaki in Myagdi

Construction has begun on a river erosion control project on the Kaligandaki River, at the border between Beni Municipality-8, Kalipul, and Parbat’s Jaljala Rural Municipality-3, Bagarphant. The Gandaki Province Water Resources and Irrigation Management Project Office initiated the Rs 29.8 million project. Engineer Narang Gurung stated the project involves building an 80-meter-long composite wall, which is four meters wide and three meters high, topped with a gabion wall, to protect the Kalipul settlement from flooding.

Hetauda-Pathlaiya Upgrade Delayed 2 Years over Fund Shortfall

The upgrading of the 27-kilometer Hetauda–Pathlaiya section of the East-West Highway to a four-lane standard has been postponed for two years due to the government’s failure to secure funding. Although the entire Narayangarh–Pathlaiya road was conceived as one international-standard project, the Narayangarh–Hetauda section’s tender is expected to be called by mid-March. The delay in the Hetauda–Pathlaiya section is due to a shortage of Rs 16 billion needed for two long flyovers (at Tikauli, Chitwan, and Amlekhganj, Bara) and the need to redesign the Hetauda segment to include a bypass.

Gold Price Drops by Rs 900 on Friday

Gold prices in the local market declined slightly on Friday, falling by Rs 900 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is being traded at Rs 252,400 per tola today. On Thursday, the price stood at Rs 253,300 per tola. Similarly, the price of silver has also decreased by Rs 70 per tola today to Rs 3,555 per tola, according to the federation.