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 Dips 1.66 Points on Low Volatility

On Thursday, the final trading day of the week, the Nepal Stock Exchange (NEPSE) index decreased by a marginal 1.66 points, settling at 2607 points. Market volatility remained minimal throughout the day, trading within a narrow range between a maximum of 2612 and a minimum of 2602 points. Trading volume was also subdued, shrinking below Rs 4 billion, with a total turnover of Rs 3.49 billion, down from Rs 3.73 billion the previous day. Low market activity is attributed to political uncertainty and the ambiguity surrounding the elections, which have dampened both buying and selling interest. While 98 companies saw their prices rise and 149 declined, all sectoral indices fluctuated by less than one percent, with gainers including Banking (0.15%) and Life Insurance (0.18%).

Government Introduces Carbon Trading Regulations 2025, Including Private Sector

The Government of Nepal has implemented the Carbon Trading Regulation, 2025, to include carbon emission reduction achieved by the private sector in carbon trading schemes. The regulation, approved by the Cabinet on December 1 and published in the Nepal Gazette on Tuesday, expands carbon trading beyond the traditional projects managed by the Alternative Energy Promotion Centre. According to the Ministry of Forest and Environment, the new framework allows Nepal to engage in carbon trading through bilateral agreements (as per Article 6 of the Paris Agreement), open competition, or non-market mechanisms. The regulation now allows for the inclusion of projects in vast sectors like hydropower, forestry, alternative energy, and agriculture, transforming carbon trading into a source of foreign currency revenue for Nepal.

Land Revenue Offices Issue Letters to Recover Old Arrears in Real Estate

The real estate sector is facing turmoil as Land Revenue Offices begin issuing letters to property owners and businessmen to recover long-standing financial arrears (Beruju) identified by the Office of the Auditor General (OAG). The OAG’s 62nd annual report highlighted that insufficient capital gains tax and registration fees, totaling millions of rupees, were collected during property transfers in the fiscal year 2023/24. Offices like the Lagankhel Land Revenue Office are sending notices demanding the payment of the deficit, often identified using a “comparative method” where a property’s transaction value is deemed insufficient if it is lower than a neighboring plot’s sale price, even if it exceeds the government’s minimum valuation. The Nepal Land and Housing Developers’ Federation has criticized this practice as impractical and discouraging to honest taxpayers.

Ambassador Urges Vietnamese Investors to Explore Opportunities in Nepal

Dhan Bahadur Oli, Nepali Ambassador to Thailand and Vietnam, urged Vietnamese investors to increase their investments in Nepal, citing vast potential, particularly in export-oriented industries. During a discussion in Hanoi with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Vietnam Chamber of Commerce and Industry (VCCI), the ambassador highlighted the 50th anniversary of diplomatic relations and stressed the need for economic cooperation in trade and investment. Chandra Prasad Dhakal, FNCCI President, also emphasized strengthening economic ties, pointing out that Nepali products like handicrafts, tea, coffee, and herbs have good market potential in Vietnam. Both officials emphasized investment opportunities in manufacturing, ICT, pharmaceuticals, and tourism, including cable cars and resorts.

Bagmati Province’s Billion-Rupee Projects Face Delays and Uncertainty

The Bagmati Provincial Government, established in 2018, is facing criticism as billions of rupees invested in ambitious projects are either incomplete, stranded, or operational only in name. Out of 12 cold storage facilities initiated in 2017/18 across nine districts with a total expenditure of Rs 1.6 billion, two projects never started, one is incomplete, and only two of the nine completed facilities are operational due to conflicts over the 70:30 provincial/local-cooperative partnership investment model. Similarly, the Powder Milk Factory in Hetauda, built at a cost of Rs 470 million and completed two years ago, remains idle due to a lack of an agreed-upon operating modality. Furthermore, nine view towers and other tourism structures built across eight districts at a cost of Rs 287.2 million are also underutilized, with the Provincial Agricultural Wholesale Market building even being temporarily occupied by a provincial ministry.

Health Insurance Faces Rs 14 Billion Payment Deficit

In the previous fiscal year, 12.5 million hospital visits were recorded by beneficiaries utilizing the national health insurance program, according to Raghunath Kafle, Executive Director of the Health Insurance Board. He noted that the data suggests an average person visited the hospital five times, although only 2.5 million people used the service once. Kafle stated that the number of people seeking services through the program is increasing every year, and efforts are underway to expand coverage and amend the Health Insurance Act, 2017. However, stakeholders warned that the program’s effectiveness is hampered by the Board’s lack of timely payment to hospitals and the scheme’s financial dependency, as annual premium collections (Rs 3.75 billion) are far outstripped by the Rs 14 billion due to hospitals.

Nepal Water Supply Corporation, Dhangadhi, Faces Over Rs 20 million in Arrears

The Nepal Water Supply Corporation (NWSC), Dhangadhi office, is struggling to recover over Rs 20 million in outstanding dues from various private and public institutions. According to Accounts Chief Pankaj Kumar Das, the total amount due from private (985) and government (44) customers as of the fiscal year 2024/25 is Rs 23.1 million. Of this, government offices alone owe approximately Rs 3.2 million. Currently serves 10,450 customers across 15 wards of Dhangadhi Sub-Metropolitan City, distributing around 15 million liters of water daily for a minimum monthly fee of Rs 110.

Budget Decrease in Health and Education

Former Interim Finance Minister Ramesh Khanal stated on Thursday in Kathmandu that the budget allocation for fundamental sectors like health and education has decreased over the last ten years, despite an overall increase in the country’s revenue structure. He expressed concern over the budget reduction in the health sector, suggesting it might be due to a lack of coordination between the Ministry of Finance, the National Planning Commission, and other government mechanisms. Khanal advocated for the government to take responsibility for outstanding health insurance payments and expedite the paymentprocess butt also emphasized the need to re-evaluate whether the health insurance structure is sustainable for the state.

Morang Administration Recovers Rs 60 million and Land from Loan Sharks

The active involvement of the Morang District Administration Office in delivering justice to victims of loan-sharking has yielded significant results. Since the government delegated full authority to District Administration Offices, the Morang office has successfully recovered over Rs 60 million and several square meters of land for the victims in the last six months. From mid-May to November 16 of the current fiscal year, the administration settled 239 out of 930 registered complaints, recovering Rs 65.5 million and 50794.31 square meters of land. Despite challenges like political pressure and threats, the administration continues its work, with an average of two new complaints registered daily.

Biratnagar Animal Quarantine Office Achieves 83.37% Progress

The Biratnagar Animal Quarantine Office reported achieving 83.37 percent progress against its operational target for the first trimester of the current fiscal year 2025/26, with a financial progress of 47.55 percent. Office Chief Dr. Bidur Prasad Gautam stated that activities focused on controlling illegal animal products at border crossings have been effectively implemented, with strict monitoring at the Rani (Biratnagar), Bhantabari (Sunsari), and Madar (Siraha) checkpoints. The office strengthened its campaign against illegal imports, confiscating and destroying a large volume of prohibited products during 32 monitoring sessions. Items destroyed included 240 kg of broiler chicken meat, 329 broiler chickens, 29 crates of white eggs, and 735 kg of frozen fish.

Government Terminates Contract for Kanchanpur Postal Highway Segment

The Hulaki Highway Directorate under the Department of Roads has terminated the contract for the construction of the Mohana River–Doke Bazaar–Belauri–Beldangi–Daiji section of the Hulaki Highway in Kanchanpur. The contract with the joint venture Baba Hans–Siddhisai JV, Kathmandu, originally signed in Fiscal Year 2016/17, was canceled on Thursday. Despite having completed approximately 82 percent of the work (with only 5 km remaining out of 20 km), the contractor was found to have repeatedly failed to meet commitments and had completely stalled the site. The decision to terminate was made after the contractor’s explanation regarding the prior 15-day notice was deemed unsatisfactory. The government will seize the performance bond, recover costs for the remaining work, and recommend the contractor for blacklisting.

Hetauda Proposes Converting Tribhuvan Highway Segment into Tourist Route

The Hetauda Sub-Metropolitan City has proposed converting the northern section of the Tribhuvan Highway from Buddha Chowk in Hetauda onwards into a dedicated tourist highway. A gathering of local representatives and stakeholders concluded that developing this segment as a tourism route is preferable, arguing that the need for a major national highway investment is diminished due to decreasing traffic after the construction of the Expressway and increasing depopulation in the northern wards. They agreed to urge the federal government to limit the road boundary to 16 meters on both sides of the centerline, instead of the original approximately 22.86 meters, to minimize damage to physical structures and ensure high returns on investment. The proposal will be finalized in the Municipal Assembly in Pus.

Gulmi Sees 8% Drop in Paddy Production

Paddy production in Gulmi district decreased by 8 percent this year compared to the previous year, according to the Agriculture Knowledge Centre. Information Officer Tikaram Nyaupane reported that only 22,323 metric tons of paddy were produced this year, a decrease from 24,426 metric tons last year. The area under paddy cultivation also shrank, from 7,288 hectares to 6,270 hectares. The Centre attributes this decline to untimely rainfall, prolonged drought, increasing rural-to-urban migration, and shortages of improved seeds and chemical fertilizers. The center is promoting the preservation of local, indigenous varieties, which farmers still prefer due to their superior taste and quality, despite growing competition from cheaper, imported rice.

Locals Halt Limestone-Carrying Tippers on Kapurkot-Koila Road Over Road Damage

Locals in Salyan have once again staged a protest and completely halted the movement of tipper trucks transporting limestone on the Kapurkot-Koila road section, starting Thursday morning. The community, led by the Milan Bazaar Management Committee and Milan Bazaar Youth Club, decided to stop the heavy-duty tippers until the road is completely blacktopped. Their grievances stem from years of excessive dust, severe road deterioration, potholes, and the serious impact of heavy vehicle traffic on public health, environmental pollution, and the safety of children. Previous seven-point agreements made in the fiscal year 2022/23 between the cement industries (including Rolpa Cement and Ghorahi Cement) and the local government regarding regular maintenance, dust control, and long-term blacktopping were allegedly not fulfilled, leading the community to take this decisive action.

Fraud Allegations Surround German Language Exam Quota

Students aspiring to go to Germany for training are facing significant challenges related to the mandatory German language exams, with allegations of fraud and lack of transparency. Germany accepts around 500 Nepali trainee workers annually who must pass five language levels (A-1 to C-1). The official partner for the German language exam in Kathmandu is the Goethe Zentrum, which charges Rs 16,500 for a single A-1 course, resulting in students spending up to Rs 1.5 million over two years. A major issue is that students studying elsewhere often cannot secure a spot to take the exam, as the limited annual quota is reportedly dominated by students who study at the Goethe Zentrum itself, leaving others to travel to India or waste both time and money.

Local Unit Offers Rs 10 Per Liter Subsidy to Dairy Farmers

Bhimad Municipality, Tanahun, has decided to provide a Rs 10 per liter subsidy to local dairy farmers as part of a production-based incentive program. Mayor Dadhi Raj Subedi announced that an agreement has been signed between the municipality and the Bhimad Agricultural Enterprise Cooperative to facilitate the grant payments. The municipality also fixed the milk prices: from August 17 to February 12, 2026, the farm-gate price is Rs 110 per liter, the wholesale price is Rs 120, and the retail price is Rs 130. Prices will slightly increase from February 13, with a farm-gate price of Rs 115, wholesale of Rs 130, and retail of Rs 140 per liter.

Hyatt Staff to Receive Minimum Pay During Hotel Reconstruction

The Hyatt Regency Hotel in Boudha and its employee representatives have reached an agreement to provide staff with the government-mandated minimum basic salary during the hotel’s reconstruction period. The hotel has been closed since the September 9 incident during the Gen Z protest, which caused extensive damage, including vandalism, arson, and looting. The management estimates the repairs will take at least one year. Under the agreement, the hotel will pay the minimum basic salary and contribute to the Social Security Fund for the duration of the closure. Employees who accept the agreement will be rehired once the repairs are complete. However, management stated that those who do not agree will be subject to redundancy procedures.

Traders Demand Solutions to Business Exodus at Lahan Chamber Election

During the candidacy declaration for the 35th convention of the Lahan District Chamber of Commerce and Industry, both candidates for the president’s post were confronted by traders and consumers demanding immediate action to halt the business exodus from Lahan. Voters questioned why the Chamber has failed to prevent the market from becoming “desolate,” noting that four rice mills have closed down, and trade in goods like groceries and hardware has shifted to neighboring markets in India (Laukaha) and Nepal (Golbazar, Chaparari). Candidates, current Secretary Pradip Gupta and current General Secretary Shyam Gupta, were asked to provide concrete plans to stop the decline, stabilize bank-trader relations, and address issues like unchecked smuggling and crime affecting small businesses.

Salpa Bikas Bank Issues IPO for Nepali Workers Abroad

Salpa Bikas Bank has opened its initial public offering (IPO) for Nepali citizens working abroad. The bank plans to issue a total of some 5.2 million units of shares, with 33 percent allocated to the public. Out of the public quota of 1.7 million units, 172,388 units have been reserved for those with labor permits working overseas. Eligible applicants can subscribe to a minimum of 10 units and a maximum of 25,000 units, with the earliest closing date set for December 15 and the latest for December 25. According to its unaudited financial statement as of mid-July, the development bank has an earnings per share of Rs 2.24 and a net worth per share of Rs 105.

Gold Price Rises by Rs 1,000 Per Tola on Thursday

The price of gold and silver increased today compared to Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of one tola (11.66 grams) of gold is set at Rs 253,100, up from Rs 252,100 on Wednesday, marking an increase of Rs 1,000 per tola. Similarly, the price of one tola of silver rose to Rs 3,805, compared to Rs 3,750 yesterday. In the international market, one ounce of gold is trading at USD 4,242 and the same quantity of silver at USD 62.