Kathmandu
Thursday, December 18, 2025

Nepal News Evening Economic Brief – December 18, 2025

December 18, 2025
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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 by 10.66 Points

On the final trading day of the week, the share market experienced a decline as the Nepal Stock Exchange (NEPSE) index dropped by 10.66 points. The index closed at 2615 points on Thursday, down from 2625 points the previous day. Despite the market remaining in the red throughout the session, the total turnover increased to Rs 4.57 billion. While the finance group saw the highest decline of 1.55 percent, companies like Swastik Microfinance and SY Panel saw their share prices rise by 10 percent. Overall, 63 companies gained while 194 companies faced losses.

Finance Minister Khanal Reports 10 Percent Revenue Growth

Finance Minister Rameshore Prasad Khanal announced that the country’s economy is showing signs of recovery, with revenue increasing by 10 percent over the last three months. During an interaction organized by Gorkhapatra, the minister noted that productivity and production are rising. He emphasized that the interim government is working on managing liquidity and creating a favorable environment for investment. Chinese investors have reportedly praised the improving investment climate. The government plans to continue its dialogue with the private sector to ensure sustainable development and address existing economic challenges while maintaining the momentum of the recent revenue growth and industrial productivity.

Governor Paudel Urges Confidence in Energy Sector

Nepal Rastra Bank Governor Dr. Bishwo Nath Paudel has urged the private sector to maintain high morale and ignore economic pessimism. He emphasized that the share market and wider economy benefit from the stability of periodic, fair elections. Paudel called for increased investment in productive sectors like energy and transport infrastructure, promising that the central bank would facilitate necessary policy adjustments. He also revealed that the government is in active negotiations with the private sector regarding the issuance of new bonds. The governor believes that bold investment in infrastructure will drive the country’s economic momentum and future growth.

Minister Announces Rs 4 Billion Project for Sudurpaschim

Minister Kulman Ghising has announced a new Rs 4 billion project to resolve electricity issues in Sudurpaschim Province. During his visit, he inspected the Tanakpur canal and the four-lane Mahakali Bridge, urging officials to complete pending works on time. He also laid the foundation stone for a 482.20-meter suspension bridge connecting Rajapur and Tikapur over the Karnali River. This bridge, scheduled for completion by June 25, 2027, will benefit 2,000 households. Ghising also met with local industrialists to discuss demands for uniform electricity tariffs and the reduction of penalties for delayed payments.

Land Revenue Rises to Rs 16.75 Billion in Five Months

Land revenue collection reached Rs 16.75 billion during the first five months of the current fiscal year, a 1 percent increase compared to last year’s Rs 16.57 billion. Data from the Department of Land Management and Archive shows that 572,000 documents were processed in this period. Although residential loan limits were recently increased to Rs 30 million, transactions remain lower than peak levels from 3 years ago. Real estate debt in the country currently stands at Rs 300 billion, with total private investment reaching Rs 800 billion. Businessmen hope for further growth once more municipalities complete land classification.

Cambodia to Host Nepal B2B Interaction

Nepal and Cambodia are set to strengthen trade and cultural ties through the Cambodia-Nepal B2B Interaction. The event, scheduled for mid-January, will be held in Cambodia and managed by Season Media. Representatives from the Nepal Chamber of Commerce and various tourism, aviation, and technology sectors will participate. The program provides a networking platform for Asian entrepreneurs and innovators. A highlight will be the International Excellence Award, honoring outstanding contributors in education, health, and tourism. This initiative aims to expand bilateral trade and long-term economic partnerships between the two nations.

Infrastructure Fund Collects Rs 120.7 Million Following Protests

The government’s Physical Infrastructure Reconstruction Fund has collected Rs 120.7 million to repair damages from the protests on September 8 and 9. The Ministry of Finance reported that The Oriental Insurance Company contributed Rs 2 million on Thursday. Official studies show that the unrest caused massive destruction worth Rs 84.457 million. This includes damages to 2,671 buildings valued at Rs 39.317 million and 12,659 vehicles worth Rs 12.9 billion.

Salasungi Hydropower Resolves Protest with Rs 20 Billion Investment

Salasungi Hydropower has agreed to issue shares to local residents of Aamachhodingmo Rural Municipality, Rasuwa, following persistent protests. The 78 MW project, built with a private investment of approximately Rs 20 billion, was completed in 2025 after starting construction in 2019. Local residents had demanded priority in share allocation, asserting their rights over the natural resources used for the project. Ward Chair Ram Bahadur Tamang announced that protests were suspended after the company formally committed to the share issuance process. The power plant, located 34 meters above sea level, currently produces 15 MW during the winter season to support the national grid.

NAMS to Provide Rs 48,000 Monthly Stipend to Fellows

The National Academy of Medical Sciences (NAMS) has announced that it will provide a monthly subsistence allowance to doctors enrolled in its fellowship program. Trainees will receive Rs 48,000 per month, matching the stipend set by the Medical Education Commission for postgraduate levels. This decision follows protests from doctors regarding high fees and the lack of allowances. Currently, NAMS charges up to Rs 840,000 for its one-year fellowship, while foreign doctors are charged USD 18,000. Due to fee disputes, the admission process has been postponed by 15 days.

CIB Submits Case Over Rs 6.34 Billion Nepal Trust Land Irregularity

The Central Investigation Bureau (CIB) has submitted its report regarding financial irregularities in leasing Nepal Trust land at Durbarmarg. The bureau recommended filing charges against former Secretary Arjun Bahadur Karki, Lekh Bahadur Karki, and Lhakpa Sonam Sherpa of Thamserku Trekking. The investigation claims a loss of Rs 6.341 billion to the state due to a collusive contract signed on May 28, 2017. The report seeks five years of imprisonment for the accused, citing criminal breach of trust and fraud in leasing the valuable property at significantly undervalued rates for a 33-year term.

KMC to Fence Public Land Across 32 Wards

Kathmandu Metropolitan City has initiated a plan to fence riverbanks and public lands at risk of encroachment across all 32 wards. The Public Construction Department issued a circular requesting ward offices to provide details of locations requiring protection. Under the approved budget for the fiscal year 2024/25, the ‘Corridor Fencing Works’ project aims to secure open spaces and government property from illegal occupation. Department Head Suresh Kumar Rai confirmed that the procurement process is already underway. Once the wards submit their specific land data, the metropolitan authorities will commence physical fencing to ensure long-term conservation of the city’s public assets.

Minister Directs Urgent Fencing to Protect Mahakali Bridge Assets

Minister Kulman Ghising has directed the Department of Roads to immediately begin riverbank conservation to protect the four-lane Mahakali Bridge and nearby settlements. Following a cabinet decision on May 20, the Nepal Army was authorized to perform temporary flood control works. However, during his inspection, Ghising emphasized that more permanent embankments are required before the next monsoon to prevent the river from eroding the left bank. The bridge is vital for connecting the Dhodhara Chandani dry port to the national road network, and the Mahakali Bridge Project has already finalized the necessary reinforcement designs.

Bhujung Hydropower Opens IPO Worth Rs 200 Million

Bhujung Hydropower has opened its Initial Public Offering (IPO) starting Thursday, targeting local residents and Nepalis employed abroad. The company has allocated 2 million units of shares, valued at Rs 200 million, which represents 20 percent of its Rs 1 billion issued capital. Out of this, 1 million units are reserved for residents of Lamjung district. Investors can apply for a minimum of 10,000 to a maximum of 50,000 units. The project, a 7.5 megawatt Upper Midim Hydropower project, has a cost of Rs 249 million per megawatt and received a B Plus rating from ICRA Nepal.

National Life Insurance Declares Rs 218.9 Million Dividend

National Life Insurance has announced a 12.5 percent dividend for its shareholders from the profits of the last fiscal year. The proposed distribution includes 4 percent bonus shares and 8.5 percent cash dividend, totaling Rs 218.9 million. The decision was made during a board meeting and is subject to approval from the Nepal Insurance Authority and the company’s upcoming general meeting. Currently, the company’s share price in the share market stands at Rs 615 per unit. This dividend announcement reflects the company’s financial performance and aims to provide returns to its investors while strengthening its capital base for future growth.

Gold Prices Jump to Rs 260,400

Gold prices in Nepal increased by Rs 700 on Thursday to reach Rs 260,400 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, silver also saw a price hike of Rs 25, trading at Rs 4,080 per tola. In the international market, gold was priced at USD 4,333 per ounce. These fluctuations reflect global market trends and local demand. The steady rise in precious metal prices continues to impact consumers and the jewelry industry, as the domestic market remains sensitive to the valuation of the US dollar and international economic shifts.