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 Falls by 23.50 Points

The stock market indicators fell across the board on Sunday, the first trading day of the week, marking the fifth consecutive day of decline. The Nepal Stock Exchange (NEPSE) index dropped by 23.50 points to settle at 2607 points. The market briefly showed signs of recovery, reaching 2636 points at 11:09 AM before continuously trending downwards. The trading volume increased by Rs 100 million, with total turnover reaching Rs 5.33 billion, up from Rs 5.23 billion the previous day. While 46 companies saw price increases, 204 declined, and 8 remained stable. Swastik Laghubitta, Shreenagar Agritech, and Jhapa Energy saw a 10 percent price increase, hitting an all-time high.

NRB to Withdraw Rs 90 Billion for 84 Days to Manage Excess Liquidity

Nepal Rastra Bank (NRB) is set to withdraw Rs 90 billion from the financial system on Sunday for a period of 84 days via a deposit collection instrument to manage persistent excess liquidity. The central bank has been regularly withdrawing money for longer terms recently due to the high amount of lendable funds in banks and financial institutions. This is part of the NRB’s regular practice, occurring twice weekly on Sundays and Wednesdays. Only ‘A,’ ‘B,’ and ‘C’ class banks and financial institutions are eligible to participate in the deposit collection instrument auction, which allows bids in multiples of Rs 50 million with a minimum bid of Rs 100 million.

Governor Poudel to Review Blacklisting Provisions

Governor Dr. Biswo Nath Poudel of Nepal Rastra Bank announced that the central bank has begun reviewing its blacklisting provisions, citing it as one reason for the sluggish growth in investment. Speaking at the anniversary ceremony of the Nepal Economic Journalists’ Association, he mentioned that approximately 150,000 debtors are currently on the blacklist. The review will also address the issue where all individuals in a group investment are blacklisted if only one individual defaults. The governor noted that the central bank is taking seriously the private sector “corruption” involving undervaluing and selling collateral placed by debtors.

Government Allocates Rs 28.82 Billion for Fertilizer Imports

The government has allocated Rs 28.82 billion for the import of chemical fertilizers, aiming to procure 550,000 metric tons this fiscal year. Tenders have already been issued for the import of 465,000 metric tons. According to the Ministry of Agriculture and Livestock Development, 266,510 metric tons of chemical fertilizer are currently in the supply chain as of the last week of November. Agricultural Inputs Company is importing 180,491 metric tons, and Salt Trading Corporation is importing 86,016 metric tons. Furthermore, a total of 86,333 metric tons is currently in stock at the warehouses.

Indian Rules Clog Nepali Exports at Biratnagar Border

Nepali exporters are facing challenges at the Biratnagar-Jogbani border due to the Indian Customs’ new ‘token system’ and an abnormal increase in parking fees, obstructing efforts to boost exports and reduce the trade deficit with India. The new rule mandates that vehicles must enter the Indian customs point within 24 hours of receiving a token, imposing a Rs 5,000 fine if entry occurs after 4:00 PM. Furthermore, the Indian side unilaterally hiked the parking fee from INR 300 to INR 500 (Rs 800) per hour. The Morang Merchant Association reported that these impractical rules have increased the cost of Nepali products and deterred exports.

Cardamom Exports Double in Four Months

Cardamom exports have doubled during the four months of the current fiscal year 2025/26. According to the Department of Customs, 1,823,000 kilograms of cardamom worth Rs 3.974 billion were exported during the period. Last year, 1,206,000 kilograms worth Rs 1.901 billion were exported during the same timeframe. The Federation of Large Cardamom Entrepreneurs Association of Nepal attributed the increase to higher international demand and better prices, reaching up to Rs 105,000 per man (40 kg). Production is also expected to increase by 10 to 15 percent this year, projecting total exports to reach about Rs 8 billion.

Upper Myagdi Hydropower Project Capacity Increased to 46.25 Megawatts

The capacity of the under-construction Upper Myagdi Hydropower Project in Dhaulagiri Rural Municipality has been increased to 46.25 megawatts from the previous 37 megawatts. The 9.25-megawatt increase was due to sufficient water resources. The estimated cost of the project is Rs 8.465 billion, and with 35 percent physical progress achieved so far, the project, which involves increasing the tunnel size and head height, aims to begin electricity generation by mid-March 2027. A public hearing was held on Saturday to discuss the revised environmental report.

Rasuwagadhi Hydropower Project Partially Resumes Operation

The Rasuwagadhi Hydropower Project, which was damaged by a flood from the Lhyende stream in Tibet, China, on July 8, has partially resumed operation. After repairing the headworks, one unit of the 111-megawatt project, which generates 37 megawatts, was temporarily brought online on Saturday through a river water diversion. According to NEA, the remaining two units will be operational within a month, and the headworks area will be fully repaired before the next monsoon season. The project expects to generate 613.875 million units of electricity annually, bringing in Rs 3.25 billion in revenue.

Jhapa Rice Production Drops

Jhapa district produced over 350,000 metric tons of summer paddy this year. According to the District Agriculture Knowledge Center, 354,315.92 metric tons were produced from 72,742.65 hectares. While productivity increased slightly to 5.195 this year, the total production and cultivated area decreased compared to the previous year. Due to unseasonal rainfall in October, at least 23,564.33 metric tons of paddy were damaged, resulting in an estimated loss of Rs 78.1 million. Farmers are currently selling medium-grade paddy for Rs 3,000 and coarse paddy for Rs 2,750 per quintal, below the government’s minimum support prices of Rs 3,628.33 and Rs 3,463.81, respectively.

Orange Production in Kavre Expected to Rise

Kavrepalanchowk district is projected to see an increase in orange production by 10 to 15 percent this year, recovering from a seven percent drop last year due to floods and landslides. The District Agriculture Development Office expects production to reach approximately 8,000 metric tons this year. The office attributes the positive outlook to local government support and orange improvement programs. Previously, the district earned over Rs 400 million annually from sales. Efforts, including public awareness campaigns and the treatment of older trees to restore productivity, are contributing factors. The district cultivates oranges on about 1,300 hectares and includes Panauti and Dhulikhel Municipalities among its major production pockets.

East-West Highway Expansion Gains Momentum

The East-West Highway is being upgraded to four- and six-lane Asian Highway standards across six sections with loan support from the Asian Development Bank. Two key sections, Kakarbhitta–Laukahi (93 km) and Kamala–Kanchanpur (86.83 km), are actively building underpasses and overhead bridges. The Kakarbhitta–Laukahi section, with a total cost of Rs 34.91 billion (34 arba 91 crore), is targeted for completion by February 1, 2027. The Kanchanpur–Kamala section, costing Rs 15.66 billion, has an extended deadline until December 31, 2026. This expansion is vital for the 1,027 km highway, which is the nation’s transportation lifeline.

International Civil Aviation Day Observed

International Civil Aviation Day is being observed worldwide on Sunday under the theme “Safe Skies and a Sustainable Future for All.” The United Nations General Assembly officially recognized December 7 as the day in 1996 to increase awareness of international civil aviation’s importance to the sustainable development of member states. The day also builds support for the International Civil Aviation Organization’s (ICAO) leadership. ICAO is responsible for fostering a safe, secure, inclusive, and environmentally responsible global air transport network. The observance aims to reinforce worldwide awareness of the industry’s role in the social and economic growth of nations.

CIAA Files Rs 8.36 Billion Claim in Pokhara Airport Case

The Commission for the Investigation of Abuse of Authority (CIAA) has decided to file a corruption case regarding the construction of Pokhara International Airport. CIAA is currently proceeding with the filing process at the Special Court, naming five former ministers and others as defendants. CIAA sources indicate the commission is demanding a claim amount of Rs 8.36 billion. The former ministers named as defendants are Bhim Acharya, Ram Kumar Shrestha, Dipak Amatya, Ram Sharan Mahat, and the late Post Bahadur Bogati (his wife, Ram Maya Bogati, has been named as a defendant).

65 American High-End Tourists Arrive in Kathmandu on Charter Flight

Amidst the post-Gen Z protest instability in Nepal, a charter Airbus flight from Tyn Air of the UK arrived in Kathmandu on Sunday carrying 65 American high-end tourists. The group arrived from Bhutan via Drukair after starting their journey in Kona, Hawaii, and traveling through Guam, Thailand, and Cambodia. The small runway and load restrictions at Bhutan’s Paro airport necessitated the transfer to a regular Bhutan Airlines flight. The tourists have chosen the renowned five-star boutique hotel Dwarika’s for their stay. They are scheduled to visit cultural sites including Pashupatinath, Boudhanath, Patan Durbar Square, and Bhaktapur Durbar Square, with each tourist expected to spend approximately USD 500 in Nepal.

Nepalgunj to Host Cross-Border Tourism Conclave

Nepalgunj will host a ‘Cross Border Tourism Conclave’ to increase the flow of Indian tourists into Nepal. The event, organized by the Nepal Tourism Board and coordinated by the Nepal Association of Tour and Travel Agents (NATTA) Banke Chapter, is scheduled for December 19, 20, and 21. NATTA Banke Chapter expects the conclave to revitalize tourism in the western region by facilitating the exchange of experiences between tourism professionals from both countries. The program includes a ‘B 2 B’ session and a jungle safari at Banke National Park. Stakeholders, including Krishna Prasad Shrestha, have urged the government to create a more favorable environment for Indian tourists to boost the nation’s tourism sector.

Nabil Bank Announces 12.50 Percent Cash Dividend

Nabil Bank has announced a cash dividend for its shareholders based on the profit earned in the fiscal year 2024/25. The bank’s board meeting on Friday decided to distribute a 12.50 percent cash dividend (including tax) on the current paid-up capital. According to Bank Secretary Bhishma Neupane, this dividend will be distributed after being approved by Nepal Rastra Bank and passed by the upcoming Annual General Meeting. With the bank’s current paid-up capital at Rs 27.5 billion, the announced rate will result in a total dividend distribution of Rs 3.38 billion.

Gold Price Drops by Rs 200 Per Tola; Silver Price Rises by Rs 50

Gold prices in the local market declined slightly on Sunday, falling by Rs 200 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold is being traded at Rs 252,200 per tola today, down from Rs 252,400 per tola on Friday. In contrast, the price of silver has increased by Rs 50 per tola. Silver, which was priced at Rs 3,555 per tola on Friday, increased to Rs 3,605 per tola on Sunday, according to the federation.