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 Rises After Six Days of Decline; Turnover Falls to Rs 3.75 Billion

The share market showed a slight recovery on the seventh trading day after a continuous six-day decline, with the Nepal Stock Exchange (NEPSE) index rising by 7.39 points to settle at 2614 points. The market hit its lowest point of the day at 2606 points at 2:54 PM but recovered in the final six minutes. Trading volume decreased to Rs 3.75 billion from Rs 4.66 billion on the previous day. Price increases were seen in 148 companies, while 101 declined. Development Bank (0.31 percent), Finance (0.40 percent), and Life Insurance (0.82 percent) were among the rising sub-indices. Three companies, Swastik Laghubitta, Srinagar Agritech, and Upper Mailungkhola Jalvidhyut, saw their prices increase by 10 percent. Himstar Urja saw the biggest drop, falling by 3.88 percent.

PNP Demands Water Pipeline with Rs 14 Billion Amlekhgunj-Lothar Fuel Project

A dispute has emerged between government bodies over the proposed 62-kilometer petroleum pipeline extension from Amlekhgunj to Lothar, Chitwan. The Parsa National Park (PNP) is conditioning its environmental impact assessment (EIA) approval on the Nepal Oil Corporation (NOC) installing a water pipeline for wildlife alongside the fuel pipeline. Ram Chandra Khatiwada, Chief Conservation Officer of the PNP, stated that installing both pipelines simultaneously saves double expenditure and provides a long-term solution to the water scarcity faced by wildlife year-round. The petroleum pipeline project is estimated to cost Rs 4.28 billion for pipeline construction and Rs 9.80 billion for the storage depot, totaling Rs 14 billion. NOC officials expressed concern that this condition could further delay the project.

DDC and Private Dairies Pay Farmers Nearly Rs 4 Billion in Dues

The Dairy Development Corporation (DDC) and private dairy industries have paid farmers nearly Rs 4 billion in outstanding dues for milk purchased. DDC reported paying Rs 1 billion of its Rs 1.5 billion debt, settling payments up to August 16. Private dairies paid approximately Rs 3 billion. DDC stated that the remaining farmer payments, including Rs 450 million for a three-month period, were made by selling off existing stocks of butter and powder. DDC currently collects 100,000 liters of milk daily. According to the Ministry of Agriculture, milk production for the fiscal year 2023/24 reached 2.68 million metric tons, showing an increase linked to growing market consumption.

Karnali Launches 3 Major Water Projects with Rs 173.6 Million Budget

The Karnali Province Government has launched a large-scale drinking water plan to increase access to clean and quality water for its citizens, focusing on sustainable and technically sound projects. The Ministry of Water Resources and Energy Development announced that three new major projects will commence construction this year: the Adanchuli Drinking Water Scheme, the Mulkhola Thara Drinking Water Project, and the Kupinde Parigaun Kauche Drinking Water Project. A budget of Rs 173.6 million has been allocated for the implementation of these multi-year projects. According to Ministry Spokesperson Padam Devkota, the shift to large-scale, technically studied projects addresses the lack of effectiveness and sustainability seen in smaller, demand-based schemes implemented in previous years.

7th Lumbini Festival Concludes in Bhairahawa with Rs 120 Million Transaction

The Seventh Lumbini Festival, organized by the Rupandehi Chamber of Commerce in Bhairahawa, concluded on Sunday, attracting 120,000 visitors. According to Sachin Rocca, Coordinator of the Main Organizing Committee, the festival generated a transaction of Rs 120 million. The 18-day event, which began on November 19, featured 300 stalls. The main attractions were the first-ever display in Nepal of a mermaid and a fish tunnel imported from Vietnam. Lumbini Province Minister of Economic Affairs and Planning, Dhanendra Karki, and Minister of Youth and Sports, Santosh Kumar Pandey, attended the closing ceremony and expressed confidence that such events significantly boost local production, trade, tourism, and the economy.

NRB Drafts AI Guideline for Financial Sector

Nepal Rastra Bank (NRB) has released a draft Artificial Intelligence (AI) Guideline to make the use of AI in banks and financial institutions (BFIs) service-friendly, secure, and regulated. The draft targets commercial banks, development banks, finance companies, microfinance institutions, and payment service providers. The guideline proposes that the senior management and board of BFIs will be fully liable for the decisions and impact of AI systems. The draft classifies potential AI risks into five categories, with those causing severe financial loss, legal liability, or service disruption deemed high-risk. Institutions must disclose their AI usage to customers and ensure that AI decisions are explainable. The use of customer data must comply with the Privacy Act, 2018, and institutions must submit an annual AI activity report to the supervisor.

Sugarcane Farmers Content with New Price of Rs 690 Per Quintal

Sugarcane farmers in Mahottari expressed conditional satisfaction after the government determined the new price and grant amount on Monday. Naresh Singh Kushwaha, president of the Federation of Sugarcane Producers Association, Mahottari, stated that while farmers had demanded Rs 750 per quintal (100 kg), the government set the price at Rs 690. This price includes Rs 620 from the sugar industry and an Rs 70 government grant per quintal, an increase of Rs 70 from last year. Farmers are now urgently waiting for the mills, like Everest Sugar and Chemical Industries in Ramnagar, to start crushing operations, as any delay in harvesting the second-year crop will prevent them from planting other crops in time.

Minister Ghising’s Leadership Leads to Cancellation of 60 Contracts Worth Rs 16.28 Billion

Under the leadership of Minister Kulman Ghising, a total of 60 nonprogressive development contracts, worth an estimated Rs 16.28 billion, have been terminated across the three ministries he leads. The contracts terminated include 38 for roads and bridges, 19 for irrigation, and three for urban development. Notices have been issued to terminate a total of 298 sick contracts with a combined value of Rs 34.33 billion. The largest cancellation is the Rs 14.8 billion contract for the Sunkoshi Marine Diversion Multipurpose Project. The Federation of Contractors’ Associations of Nepal has expressed intense dissatisfaction, arguing that arbitrary terminations and the forfeiture of large bank guarantees could destabilize the entire construction industry.

Postal Highway Contract for Morang Road Section Terminated Due to Low Progress

The Postal Highway Directorate under the Department of Roads has terminated the contract for the Ratuwa-Keshaliya six-kilometer road section in Morang. The Itahari Project Office issued a public notice on Tuesday, ending the agreement with Shrestha Construction Company, Hetauda. The contract was signed on November 9, 2019, for Rs 839.9 million (including tax), with a three-year completion deadline. Despite two extensions, construction progress remains at only about 25 percent. The termination follows the contractor’s failure to meet commitments and shutting down the site. The Project Office has initiated action to confiscate the contractor’s performance bond of Rs 41.9 million and reclaim the advance payment of Rs 96.7 million with 10 percent interest.

Rolpa’s Local Unit Completes “One House, One Tap” Water Project

The Sunil Smriti Rural Municipality-8, Aresh Dharakharka, Rolpa, has successfully completed a “One House, One Tap” drinking water project, benefitting 45 households and one school. The project, implemented in coordination with International Nepal Fellowship (INF) Nepal and the Rural Municipality, was carried out under the Khada River and Goganpani River water sub-schemes. The total cost of the two sub-schemes was Rs 4.1 million, with contributions of Rs 1.8 million from INF Nepal, Rs 300,000 from the Rural Municipality, and Rs 1.9 million from the community. This project has brought significant relief to the locals, who had faced a severe water shortage for years.

Siraha’s Local Unit Pledges Rs 10 Million to Rebuild Kamala River Bridge

Aurahi Municipality in Siraha has announced a donation of Rs 10 million towards a public campaign to rebuild the bridge over the Kamala River, which connects Siraha and Dhanusha districts. Mayor Shivji Yadav made the announcement four years after the initial structure collapsed before its opening. Senior writer and Hulaki Road construction activist Ram Rijhan Yadav launched a public fundraising campaign on Saturday to initiate the bridge’s reconstruction. Minister Kulman Ghising inspected the site on November 21 and pledged to resolve the issue. The original contract for the 470-meter bridge, initially costing Rs 249.1 million, was signed in 2011 and was taken over by Lumbini Builders Construction in 2019.

New Customs Act, 2025 BS, Introduces Blue Lane and Stricter Penalties

The new Customs Act 2025, which came into effect on Saturday, has introduced the Blue Lane to the clearance process, making a total of four lanes. Similar to the Green Lane, the Blue Lane allows for the release of goods without inspection of documents or goods at the border. However, post-clearance inspection (PCA) is mandatory for Blue Lane goods, unlike the Green Lane, where PCA was optional. The new act also introduced the Authorized Business Person (ABP) concept for trade facilitation but significantly tightened penalties. Penalties for under-declaration of goods have been increased from 50 percent to 100 percent. Presenting forged documents to evade revenue can now result in a fine of 200 percent of the loss and up to a one-year jail term.

4 Firms Penalized Following Market Monitoring

The Department of Commerce, Supplies, and Consumer Protection (DoC&CC) penalized four firms after conducting market monitoring in Kathmandu, Bhaktapur, and Lalitpur on Monday. Nyanu Nepali Sirak Industry in Madhyapur Thimi was fined Rs 20,000. Shree Chonga Ganesh Hardware and Krishna Plywood and Paint, both located in Sallaghari, Bhaktapur, were fined Rs 10,000 each. Imran Readymade in Kathmandu Metropolitan City-16 was also fined Rs 10,000. The firms were penalized for violating sections of the Consumer Protection Act, 2018. The DoC&CC monitored 15 firms in total, providing general instructions to 11 of them for necessary improvements and compliance with the law.

Illegal Crusher Plant Shut Down by Monitoring Committee

The District Monitoring Committee has shut down an illegally operating crusher plant in Leguwaghat, Arun Rural Municipality-6, Bhojpur. District Coordination Committee Chief Kamal Thulung confirmed the action, stating that the crusher was found to be illegally exploiting natural resources without completing any legal procedures. The monitoring committee determined that the crusher violated the Stone, Gravel, Sand Excavation, Sale, and Management Standards, 2020. Specifically, the plant was operating only about 300 meters north of the Leguwa-Bhojpur Highway bridge and 60 meters from the Arun River, distances prohibited by law. Thulung stated that the committee is facing pressure to reopen the plant but is committed to bringing all law-violating crushers under the legal framework. The illegal operation had been running since 2016.

Kailkot’s Local Unit Ordered to Recover Nearly Rs 7 Million

The Mahabai Rural Municipality in Kailkot has been ordered to recover Rs 6.981 million distributed in an arbitrary manner, according to the Auditor General’s report for the fiscal year 2023/24. The audit identified Rs 24.3 million in irregularities from various unverified schemes. The report specifically named individuals, including Rural Municipality Chairman Khem Bahadur Singh, for recouping unauthorized payments. The municipality’s total outstanding audit queries have now reached Rs 234.9 million. The report also flagged Rs 94,000 claimed for travel expenses between Mahabai and Manma, despite the actual travel cost being significantly lower, indicating a misuse of funds.

Godawari’s Waste Center Now Generates Rs 5 Million Revenue

The Integrated Waste Management Center (IWMC) in Godawari Municipality-3, Chowkidanda, which cost Rs 562.7 million to build, has become a source of income, generating an average monthly revenue of Rs 500,000 over the last four months. The revenue, totaling approximately Rs 1.5 million to Rs 1.6 million, is earned through the sale of compost fertilizer and recyclable materials. The center, built by China’s Sichuan Province Geologic Engineering Company, has a daily processing capacity of 13.51 tons of solid waste and 13 cubic meters of fecal sludge. It also charges a reduced fee of Rs 1,500 to clean septic tanks, earning over Rs 100,000 monthly, proving the project’s financial sustainability.

Koilabash Customs Office Misses Revenue Target by Rs 1.8 Million

The Koilabash Customs Office in Dang collected Rs 3.9 million in revenue during the first four months of the fiscal year 2025/26, missing its target by Rs 1.8 million. The office had aimed to collect Rs 5.7 million by November 16. Revenue collection was hampered by the Gen Z protest’s impact on business and strictness from Indian security personnel at the border. The primary source of revenue is a daily tax collected from Indian vehicles entering Nepal, which stands at Rs 600 for cars and Rs 200 for motorcycles.

Local Unit Allocates Budgets for Free Cataract Surgery

Ramgram Municipality in Nawalparasi Paschim (Bardaghat Susta West) is offering free cataract surgery to residents through an agreement with the Dr. Binod-Nita Kandel Eye Hospital in Parasi. Mayor Dhanpat Yadav stated that the service, launched last fiscal year, targets poor and underprivileged families who face financial barriers to eye care. The municipality has allocated Rs 350,000 for the current fiscal year to cover the cost of surgeries based on municipal recommendations. The municipality also provides several other free services, including free blood, checkups for senior citizens at home, free ambulance service for new mothers, and free video X-rays for pregnant women. The budget may be increased if the number of patients requiring surgery rises.

Gold Price Drops by Rs 1,000; Silver Rises

The price of gold has dropped, while silver has seen a slight increase on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold decreased by Rs 1,000 per tola (11.66 grams) and is trading at Rs 251,900. In contrast, the price of silver increased by Rs 15 (15) and is trading at Rs 3,600 per tola. In the international market on Tuesday, gold is trading at USD 4,185 per ounce.