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 for Sixth Straight Day; Rs 4.66 Billion Traded

The share market continued its decline for the sixth consecutive trading day on Monday, with the Nepal Stock Exchange Limited (NEPSE) index falling by 3.02 points to settle at 2,606. Over the past six days, NEPSE has decreased by a total of 170 points, down from 2,776 on November 27. Political instability and election uncertainty are cited as the main reasons for the lack of investor confidence despite some policy facilitations. The day saw mixed group indices, with all fluctuations remaining under one percent. Trading volume decreased to Rs 4.66 billion today, down from Rs 5.33 billion the previous day. Four companies, including Upper Syange Hydropower and Swastik Laghubitta, saw their share prices increase by 10 percent. The top traded companies were Ngadi Group, Sagar Distillery, and Pure Energy.

NRB to Regulate AI Usage in Banking Sector

The Nepal Rastra Bank (NRB) is preparing to regulate the use of Artificial Intelligence (AI) in the banking and financial sector by issuing a comprehensive guideline. The NRB has published a draft of the guideline for public suggestion until December 30. The main objective is to ensure transparency and accountability in the use of AI while safeguarding customer data and privacy. The guideline mandates that the Board of Directors and top management of financial institutions will be accountable for AI-generated risks and decisions. It also classifies AI systems based on risk, requiring high-risk systems such as those with high financial impact or using biometric data to have strict monitoring. Furthermore, it requires institutions to inform customers when AI is used in decision-making and to establish special mechanisms for handling customer grievances.

Public Enterprises’ Overdue Loan Repayments Exceed Rs 408 Billion

The total investment by the government in 159 public enterprises and bodies reached Rs 930.88 billion by the end of the fiscal year 2024/25, according to the Public Debt Management Office Annual Report. This includes Rs 404.814 billion in equity and Rs 526.66 billion in loans. However, the return on this massive investment remains poor, and non-payment has led to soaring liabilities. The total overdue principal and interest payments have reached Rs 408 billion. Furthermore, 21 enterprises have not completed their regular final audits, with some, like Nepal Orind Magnesite, failing to audit since the fiscal year 2007/08, highlighting a critical lack of financial discipline.

Government to Pay Pending Rs 5 Billion Cash Subsidies to Exporters

The government has agreed to release pending cash subsidy payments owed to exporters for previous fiscal years, despite cutting the program in the current budget (2025/26). Finance Minister Rameshore Prasad Khanal confirmed that the old subsidy payments will be made available to the businesses. Tanka Prasad Pandey, spokesperson for the Ministry of Finance, acknowledged receiving the proposal from the Ministry of Industry, Commerce, and Supplies and assured that a decision for the fund release will be made as quickly as possible. Naresh Lal Shrestha, president of the Nepal Export Council, stated that the subsidy amount of Rs 5 billion has been withheld for two fiscal years. Moving forward, the government plans to shift the incentive from being export-based to production-based.

NRB Adopts Contributory Pension System

The Nepal Rastra Bank (NRB) has implemented a contributory pension scheme by amending its Employee Bylaw 2002. The scheme will apply to all permanent employees joining the central bank through open competition advertisements published after July 17. Under the new rule, the employee’s monthly salary will be deducted by six percent, and the bank will contribute 100 percent of that deducted amount to a separate fund. Employees who serve for 20 years or more are eligible for a monthly pension or a lump sum, which they can choose. Employees who leave the bank’s service before the pension period, for any reason, will receive the full lump sum amount, including interest and profit, except for those dismissed for making them ineligible for future bank service.

Sugar Industry Hit by Nationwide Protest, Farmers Demand Rs 750 Support Price

The current cane crushing season (2025/26) for sugar mills across the country is paralyzed by intense protests, uncertainty, and government sluggishness, severely impacting one of the Terai’s main sources of income. Farmers are demanding the restoration of the Rs 70 per quintal subsidy, which was unjustly cut to Rs 35, and a minimum support price of Rs 750 per quintal. The farmers’ demands are necessary given the high cost of living and agricultural inputs. The uncertainty caused by the movement means the 13 sugar mills, including Everest Sugar Mill in Mahottari, may not start operating until after the March election. This delay risks economic damage to the industry and the livelihood of 150,000 farmers, who face the prospect of lower recovery rates from overripe cane.

Foreign Workers Fill 45 Percent of Jobs in Nepali Construction Sector

An average of 2,223 Nepali youths leave the country daily for foreign employment, yet the domestic construction industry faces a critical labor shortage, relying heavily on foreign workers. According to the Federation of Contractors’ Associations of Nepal (FCAN), over 500,000 Indian and foreign workers are regularly employed in Nepal. The sector requires 2.5 million workers, with 45 percent being Indian. Skilled Indian workers, who receive a high monthly salary of Rs 50,000 to Rs 200,000, are filling the gap because Nepali workers are unwilling to undergo skill training despite comparable or lower wages offered abroad. The Federation’s preference is increasingly for returnee migrants who bring better work culture and discipline.

So Far FTMC Procures 82,000 Quintals of Paddy

The Food Management and Trading Company (FMTC) has procured 82,000 quintals of paddy from farmers across various districts over a period of one and a half months, starting from October 28 in Dhangadhi. The FMTC has allocated a budget of Rs 700 million and aims to purchase 190,000 quintals this year. Unlike last year, when private traders offered higher prices, this year, private traders are buying paddy for Rs 800 to Rs 1,000 less than the government’s support price, making it easier for FMTC to meet its target. The government has set the support price for coarse paddy at Rs 3,463 per quintal and medium paddy at Rs 3,628 per quintal for the fiscal year 2025/26. The company has appealed to the Ministry of Industry, Commerce, and Supplies for price reimbursement due to buying above market value.

Upper Myagdi-1 Hydropower Project Achieves 30 Percent Physical Progress

The 53.5-megawatt Upper Myagdi-1 Hydropower Project, under construction in the Dhawalagiri and Malika rural municipalities of Myagdi, has achieved 30 percent physical progress. Jyoti Kumar KC, Project Chief, stated that the project, promoted by Upper Myagdi Hydropower Limited, has achieved 30.94 percent physical and 30.80 percent financial progress in one year. Tunnel excavation is proceeding from four points, with 2,360 meters completed out of the total 5,789.71 meters. The project aims to start electricity production by 2027. The total investment is Rs 11.232 billion, secured through a consortium of six banks led by Sanima Bank, the promoter company, and public shares.

Minister Khanal Stresses Economic Prosperity is Key Gen Z Demand

Finance Minister Rameshore Khanal asserted that economic prosperity is the main issue driving the Gen Z protest. Addressing the 16th Annual General Meeting of the Nepal Association of Financial Journalists, he stated that the government is working to ensure sustainable economic growth, end corruption, and guarantee good governance, which are all key demands of the protesting youth. While stressing the need to hold the election on time, the minister criticized the attacks on the private sector during the movement, calling the destruction of private property an attack on the assets of the Nepali people. Meanwhile, Dr. Bishwo Nath Poudel, Governor of the Nepal Rastra Bank, emphasized the need to raise the morale of entrepreneurs and investors, stating, “We are strong in economic policy, but our morale is weak.”

Minister Kharel Inspects Damaged Ncell Office; Rs 650 Million Loss Estimated

Minister of Communication and Information Technology Jagadish Kharel visited the Ncell office in Nakkhu to assess the damage caused during the Gen Z protest. Ncell Chairman Satish Lal Acharya and CEO Michael Foley briefed the minister on the losses, which were estimated to be around Rs 650 million from vandalism, looting, and arson at the central office in Lainchaur and other locations. Since the incident on September 9, Ncell has been operating its services from the Nakkhu office. Minister Kharel expressed happiness that Ncell is preparing to launch a new package targeting the Gen Z demographic and announced plans for a Rs 10 million Gen Z Scholarship for 100 students. He also stated that the government is ready to help resolve policy issues and outstanding disputes with Ncell.

Kulman Orders Immediate Resumption of Underground Wiring

The work to lay underground electricity wires within the Kathmandu Metropolitan City (KMC) will be immediately resumed. Following a meeting on Sunday at the Ministry of Energy, Water Resources, and Irrigation, Minister Kulman Ghising secured a consensus among stakeholders to restart the halted work. Minister Ghising, who is also temporarily in charge of the Ministry of Physical Infrastructure, instructed that the remaining underground wiring, particularly in areas like Putalisadak, be completed before the next monsoon season. He also directed coordination with internet, telephone, and TV service providers to remove overhead wires once the underground work is finished. The underground system, which covers about 80 percent of the Kathmandu Valley, will enhance the city’s aesthetics and safety by removing the tangle of overhead wires.

NEA Nepalgunj Recovers Rs 2.1 Million Unpaid Dues in Three Days

The Nepal Electricity Authority (NEA) Nepalgunj Distribution Center recovered over Rs 2.1 million in unpaid electricity dues in just three days through a stringent arrears collection campaign. Center Chief Sanjay Kumar Mishra stated that the campaign was launched due to the high amount of outstanding dues. Under the initiative, the lines of 322 customers with long-term arrears were initially cut, resulting in the collection of Rs 2.1 million from 133 customers who paid their bills to restore service. On Sunday alone, the lines of 121 customers were cut, leading to the collection of Rs 689,431 from 44 customers on the same day. Mishra warned that the campaign will continue strictly, as NEA regulations permit cutting lines for dues unpaid for over 61 days.

Birgunj Metropolitan Opens Market Spending Rs 7 Million

The Birgunj Metropolitan City has inaugurated the fruit and vegetable market constructed in Chhapkaiya, Railway Road, aiming to address the long-standing shortage of a wholesale market in Birgunj. Mayor Rajesh Man Singh stated that the market, which was delayed for over a year and a half due to various reasons, including the unorganized market at BP Garden, will be crucial for the residents of Chhapkaiya. Chief Administrative Officer Arvind Lal Karna stated that the first phase, costing Rs 7 million, consists of 14 units and 28 shutters with basic amenities like electricity, water, and security. The Metropolitan City plans a second-phase investment of an additional Rs 7 million to expand the infrastructure and separate wholesale and retail operations.

Nepalgunj Private Sector Appeals for Direct Air Service to Delhi

The private sector has urged the government to establish direct air service between Nepalgunj and Delhi. On Sunday, the President of the Nepalgunj Chamber of Commerce and Industry, Tanka Dhami, submitted a 21-point memorandum to Prime Minister Sushila Karki through Finance Minister Rameshore Khanal, highlighting the decade-long efforts for this connectivity. Dhami stressed that direct flights would boost trade, industry, and tourism in the region, noting that the necessary infrastructure is already in place. Minister Khanal responded that since the current government is only in power for about three more months before the March 5, 2026 election, it is constrained from taking major action. The Chamber also requested the government to reduce customs duties to combat smuggling that harms local businesses.

Butwal International Exhibition Center 93% Complete After 6.5 Years of Delay

The Butwal International Exhibition Center, initially scheduled for completion in 27 months by 2021, remains incomplete 6.5 years after its groundbreaking in 2019. The construction is 93 percent complete, but the fifth deadline, which expired on November 24, was missed. Information Officer Shobhakar Gyawali of the Exhibition Center Implementation Unit stated that the contractor, Capacit Infra Project-Gauri Parvati JV, has requested a fifth extension of five months. The company, which took the construction job for Rs 1.2 billion (excluding VAT), has received approximately Rs 800 million, or 76 percent of the payment. Gyawali indicated that insufficient budget allocation, with only Rs 80 million allocated this fiscal year, is a major factor in the delay. Despite the construction not being fully complete, three industrial exhibitions have already been held on the premises.

Annapurna Region Sees Record Tourist Boom, Exceeding 273,000 Arrivals in 11 Months

The Annapurna Conservation Area (ACAP), a leading trekking destination in Nepal, registered an unprecedented tourist increase this year, with 273,646 foreign visitors arriving between January and November. This number surpasses the total arrival count of 244,045 for the entirety of 2024, marking a new record with over 29,000 more arrivals in 11 months. According to Dhaka Bahadur Bhujel, Chief of the ACAP Manang Conservation Office, the year 2025 has emerged as a year of tourism recovery post-pandemic. Of the total visitors, 115,555 were from SAARC countries, and 158,091 were from other nations. April was the busiest month, with 44,763 visitors. Manang alone received 6,703 foreign tourists in November.

Rs 46.873 Billion of Government Investment in Public Enterprises Untraceable

Approximately Rs 46.87 billion of government investment in public enterprises is unaccounted for, as records between the Ministry of Finance and the Public Debt Management Office (PDMO) do not match the enterprises’ balance sheets. The discrepancy includes Rs 26.342 billion in equity and Rs 20.531 billion in loans. This historical accounting error is prominent in institutions like the Civil Aviation Authority of Nepal (CAAN), Nepal Electricity Authority (NEA), and Nepal Airlines Corporation. The problem stems from a lack of integrated accounting standards, internal control systems, and ambiguous legal guidance regarding loan repayments and interest rates. The PDMO is pressing institutions to reconcile their accounts by the end of December 15.

Nepal Bank Offers Special Health Service Discounts to Staff and Clients

Nepal Bank Limited and Cura Health, located in Jwagal, Lalitpur, have signed an agreement to provide special discounts on health services to Nepal Bank employees and customers with accounts at the bank. The agreement was signed by Nirmal Subedi, Head of the Marketing and Research Division on behalf of the bank, and Sheetal Prasad Pokharel, Manager on behalf of Cura Health. This partnership aims to provide reduced rates for various health services offered by Cura Health to both the bank’s staff and its customer base.

Eight Hospitals in Kavrepalanchowk Now Provide Health Insurance

The number of hospitals providing first-point health insurance services in Kavrepalanchowk district has reached eight, with the Mandandeupur Municipality’s Basic Hospital formally starting services on Sunday. The hospital received approval as a first service center after joining the Health Insurance Board in August. Bagmati Province Health Minister Kiran Thapa formally inaugurated the service. Mayor Tok Bahadur Waiba stated that 65 percent of the municipality’s citizens have already enrolled in the health insurance program. Previously, Methinkot Provincial Hospital, Banepa Municipal Hospital, and primary health centers in Sunthan, Khopasi, and Panchkhal were providing the service. The Dhulikhel Municipality Health Center also started its insurance service from the premises of Dhulikhel Hospital on August 11 to make it easier for service seekers.

Reliance Spinning Mills IPO Over-Subscribed in 30 Minutes for Migrants

The Initial Public Offering (IPO) for Reliance Spinning Mills was oversubscribed within 30 minutes of its launch today, Monday. The company issued 115,596 units of shares specifically for Nepali citizens employed abroad, which is 10 percent of the total public issue of 1,155,960 units. The company reported that in just one hour, applications for 118,340 units of shares were received from 1,970 investors through 36 banks. The application period for those on foreign employment will remain open until Thursday.

Gold Price Jumps By Rs 700, Silver Drops

The local market saw an increase in the price of gold on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold has risen by Rs 700 compared to Sunday, reaching Rs 252,900 per tola. On the previous day, gold was traded at Rs 252,200 per tola. Meanwhile, the price of silver has seen a decrease of Rs 20, standing at Rs 3,585 per tola today, the association reported.