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 13.88 Points

The Nepal Stock Exchange (NEPSE) index fell by 13.88 points on Monday, closing at 2,581.21. Trading volume also declined to Rs 3.51 billion, down from Rs 4.52 billion a day earlier. Prices rose for 54 companies, fell for 200, and remained unchanged for five. All sectoral indices declined except trading. Life insurance dropped 1.01 percent, hotels and tourism 1.26 percent, and hydropower 0.66 percent. Lumbini Bikas Bank, Sun Nepal Life, Manjushree Finance, Himalayan Power Partner, and Citizen Life led turnover. SY Panel gained the most, while Manushi Laghubitta posted the biggest loss.

NRB Rolls Out New Directive, Fixes Rs 2.5 Billion Capital Threshold

Nepal Rastra Bank has set a minimum paid-up capital of Rs 2.5 billion for cooperative banks under the Cooperative Bank Directive, 2025. Banks must maintain primary capital of 4 percent and total capital of 8 percent based on risk-weighted assets. A four-tier penalty system has been introduced, with banks facing license cancellation if capital shortfall exceeds 75 percent. NRB has also issued a separate integrated directive for the National Cooperative Bank, covering nine areas including governance, risk management, and financial reporting, marking the first dedicated regulatory framework for the sector.

SSF Collects Rs 97.57 Billion

The Social Security Fund (SSF) has reached a total collection of Rs 97.57 billion from some 2.6 million workers across various sectors. Of this amount, Rs 18.4 billion has been paid out in benefits, with Rs 14.885 billion distributed for old-age security. The fund currently includes some 2 million migrant workers. Under the scheme, employers contribute 20% and employees 11% of the basic salary. In the past year, the fund disbursed Rs 5.9 million in claims. Additionally, contributors who have paid into the fund for 36 months are eligible for special loans up to 80% of their accumulated balance.

Revenue Arrears Reach Rs 275.5 Billion

Disputes between taxpayers and the government have pushed total revenue arrears to Rs 275.5 billion as of the end of the last fiscal year. According to the Inland Revenue Department, at least Rs 94.95 billion is owed by over 330,000 taxpayers, while Rs 180 billion remains tied up in legal appeals. Income tax accounts for the largest portion of the dispute, totaling Rs 219.11 billion. The department managed to collect only Rs 8.71 billion against a target of Rs 22.76 billion for income tax arrears, highlighting significant challenges in judicial resolution.

Public Enterprises’ Overdue Debt Reaches Rs 408 Billion

Public enterprises in Nepal are struggling with debt, as overdue payments skyrocketed to Rs 408 billion in the fiscal year 2024/25. This is a massive increase from Rs 92 billion just four years ago. The Public Debt Management Office reports that out of Rs 930 billion invested by the government, Rs 526 billion is in loans. Nepal Electricity Authority accounts for 69.6% of the total default, with Rs 278 billion in overdue principal and interest. Experts blame political interference and weak management for the financial instability of these state-owned entities.

Minister Ghising Inspects Rs 7.34 Billion Siddhababa Tunnel

Minister Kulman Ghising inspected the Siddhababa Tunnel project on the Siddhartha Highway this Sunday, noting 65% physical progress. The project, contracted to China State Construction Engineering Corporation for Rs 7.342 billion, aims to bypass landslide-prone areas in Palpa. The minister directed officials to resolve a 19-month deadline extension request by the contractor to avoid further delays. The 1,126-meter main tunnel is part of an EPC model project funded by the Nepal Government, scheduled for completion by April 2027.

198 Companies Apply for Licenses as Real Estate Rules Tighten

Following a government mandate, 198 companies have applied for licenses to conduct real estate transactions exceeding Rs 30 million. The Ministry of Land Management required firms operating in metropolitan and sub-metropolitan areas to register by December 13. Licensed firms must pay fees ranging from Rs 500,000 to Rs 1 million depending on transaction volume. While the Nepal Land and Housing Developers’ Federation welcomed the move toward transparency, President Bishnu Ghimire criticized the government for exempting individual-to-individual deals, which remain unregulated despite the new corporate licensing requirements.

NICCI Seminar Discusses USD 747 Million Investment Potential

The Nepal-India Chamber of Commerce and Industry (NICCI) held its 31st Annual General Meeting, focusing on systematic reforms to attract Indian investment. Former ADB Vice President Dr. Bindu Nath Lohani urged the government to act as a partner rather than a “gatekeeper” to resolve policy uncertainties. The seminar highlighted cross-border electricity trade, with NEA Managing Director Hitendra Dev Shakya stating the door is open for the private sector. Discussions also covered the USD 747 million total joint investment under MCC and government funds. Finance Minister Rameshore Prasad Khanal advised the private sector to expand market access to strengthen bilateral economic ties.

Private Sector Alarmed by Government Plan to Release Rioters

The private sector has expressed serious concern over the government’s decision to release individuals involved in looting and arson during the Gen Z protest. Following a cabinet approval of the agreement between the prime minister and Gen Z representatives on December 11, the government plans to withdraw cases against those not involved in organized crime. Federation of Nepalese Chamber of Commerce & Industries (FNCCI) President and Confederation of Nepalese Industries (CNI) President warned that this promotes impunity and discourages investment. Ncell reported a loss of Rs 600 million due to attacks on its corporate house, emphasizing that such acts were criminal, not political, and perpetrators must be punished.

Weather Forces Closure of Three Domestic Airports

Adverse weather conditions and thick fog have led to the temporary closure of three domestic airports in the Terai region. For Kathmandu Airport, flight operations are currently suspended at Bhairahawa, Janakpur, and Simara. While Dhangadhi Airport reopened recently, many Terai airports remain shut during morning hours, only resuming services in the afternoon as visibility improves. Despite the regional disruptions, flight operations at the international airport in Kathmandu remain regular. Passengers are advised to check flight statuses frequently as winter weather continues to impact domestic air travel schedules across the Southern Plains.

Nabil Bank Wins USD 7.4 Million Counter-Guarantee Case in China

Nabil Bank has successfully secured a legal victory in the Chongqing Higher People’s Court regarding a counter-guarantee dispute with a Chinese bank. The court ruled in favor of Nabil, allowing the recovery of USD 7.4 million related to the Trishuli 3B Hydroelectric Project. The dispute arose after Trishuli Jalvidhyut Company terminated its contract with the Chinese firm Shuifa ANHE Group on December 16, 2023, due to construction delays. China Everbright Bank (Chengdu Branch) had initially refused to honor the counter-guarantee payment following an injunction. However, Nabil Bank had already fulfilled its obligation by paying the guarantee amount to the hydropower company. The final ruling on September 23 dismissed the Chinese firm’s appeal, marking a significant win for the Nepali banking sector in international judicial proceedings.

New Leadership Appointed at TIA and CAAN Amid Corruption Charges

The Ministry of Culture, Tourism, and Civil Aviation has appointed Teknath Sitaula as the acting General Manager of Tribhuvan International Airport (TIA). The position became vacant after corruption charges were filed against the former chief, Hansraj Pandey, regarding the Pokhara International Airport project. Similarly, Dev Chandra Lal Karna has been appointed as the acting Director General of the Civil Aviation Authority of Nepal (CAAN). This follows the legal indictment of Director General Pradip Adhikari, which had left the aviation regulatory body without leadership. These appointments aim to ensure administrative continuity at the nation’s primary aviation hubs.

US Institution Offers Unsecured Student Loans Up to USD 100K

In a first for Nepal, MPOWER Financing, an American institution, has introduced collateral-free education loans up to USD 100,000 for postgraduate students. Associate Director Claire Almand stated the loans target STEM and MBA students heading to 500 top universities in the US and Canada. Using a data-driven algorithm, the firm evaluates career potential instead of requiring a guarantor. The loans feature fixed interest rates for a 10-year term. The entire process is digital, allowing students to apply online in 30 minutes for funds covering tuition and living expenses.

Karnali Province Records Weak Budget Expenditure of 2.85%

Karnali Province has reported a low budget expenditure of only Rs 941.6 million from November 17 to December 15, representing just 2.85% of its total budget. Out of a Rs 32.99 billion annual allocation, the government has spent only 9.87% in the first five months of the fiscal year 2025/26. Capital expenditure is particularly poor at 4.36%, with the Ministry of Physical Infrastructure spending only 5.64% of its Rs 10.73 billion budget. The provincial government blamed the Gen Z protest and administrative delays for the weak performance, which is lower than previous years.

Rs 2.7 Billion Invested to Repair Flood-Damaged Kanti Highway

Repair work has finally commenced on the Kanti Highway following devastating floods in September and October 2024. The Kanti Highway Road Project has awarded multiple contracts totaling over Rs 2.7 billion for road stabilization and bridge construction. This includes a Rs 1.33 billion contract for the Tika Bhairav-Baguwa section and Rs 740 million for the Baguwa-Hetauda stretch. Additionally, KM Engineers Builders is constructing a new permanent bridge at Baguwa for Rs 180 million. The project aims to complete two-lane upgrades and major landslide control before the next monsoon to ensure uninterrupted traffic.

Local Units Urged to Propose Projects for Federal Grants

The Ministry of Federal Affairs and General Administration has called upon all 753 local levels to submit project proposals for federal equalization and special grants for the fiscal year 2026/27. Officer Prakash Panthi requested that municipalities submit their proposals via the National Planning Commission’s electronic system by February 12, 2026. This timeline aligns with the constitutional requirement for the federal budget announcement on May 29, 2026. These grants are essential for local infrastructure and social development projects, ensuring that provincial and local governments can finalize their own budgets by June 15 and June 25, 2026, respectively.

Rs 175.6 Million Municipal Hospital Inaugurated in Madhyabindu

A new municipal hospital building, constructed at a cost of Rs 175.6 million, was inaugurated in Chormara, Nawalpur. Mayor Bhimlal Adhikari opened the 15-bed facility this Sunday, which was upgraded from a primary health center. The two-story building features 42 rooms, including an operation theater, lab, and specialist wards for pediatrics and orthopedics. The hospital, which already serves 300 patients daily, will also provide emergency trauma care due to its proximity to the East-West Highway. It aims to serve residents of Madhyabindu, Binayi Triveni, Hupsekot, and even eastern Palpa with high-quality healthcare.

Nepali Hog Plum Processing Becomes Major Income Source for Parbat Farmers

In Parbat, known as the “Lapsi (Nepali hog plum) District,” the harvest season has brought a surge in economic activity. The Community Food Processing Industry in Mudikuwa is preparing to process 60 tons of the fruit this year, targeting a turnover of Rs 7 million. Products such as candy, pickles, and jam are in high demand domestically and among Nepalis abroad. Operator Thaneshwor Bhusal noted that while the district produces 200 metric tons, only 30% is processed due to limited technology. To encourage farmers, the industry has distributed free saplings, expanding commercial lapsi farming across 40 wards in the district.

Department Fines Two Firms Rs 50K Each

The Department of Commerce, Supplies, and Consumer Protection has fined two establishments Rs 50,000 each for violating the Consumer Protection Act, 2018. Priya Sweet and Chaat House in Maharajgunj and iCafe Restaurant and Bar in Tokha were penalized for failing to display mandatory price lists and business registration certificates. The law requires manufacturers to post factory prices and retailers to display wholesale or retail price lists visibly. Additionally, the department monitored 14 other firms, issuing directives as part of intensified market inspections to control black marketing and the sale of inedible goods.

Orange Festival Targets Rs 100 Million in Local Trade

The Second Orange Festival and Food Festival 2025 is set to begin this coming Friday in Chitwan. Organized by the Chitwan Association of Industries and local hotel associations, the five-day event aims to promote domestic tourism and local produce. Orange production in the region generates an annual turnover between Rs 90 million and Rs 100 million. The festival will feature over 50 stalls, benefiting 100 local farmers. The local government is providing technical support and irrigation facilities to help farmers expand their orchards and combat declining production in older groves.

Sharma-Kumar JV Contracted USD 20 Million MCC Road Contract

The Millennium Challenge Account Nepal (MCA-Nepal) has awarded the Dhankhola-Lamahi road recycling project contract to Sharma-Kumar JV. The deal, valued at USD 20 million (excluding VAT), covers the upgrading of a 40 km section using advanced “Full Depth Reclamation” technology. This marks the first time a fully Nepali joint venture has secured a contract under the MCC compact. The project, funded by a USD 550 million US grant and a USD 197 million government contribution, aims to improve road quality and facilitate regional energy trade. Construction is expected to be completed within 24 months of the signing.

Citizen Investment Trust Declares 13% Dividend

The Citizen Investment Trust (CIT) has announced a total dividend of 13% from its profits for the last fiscal year. Following a board meeting on Sunday evening, the CIT proposed 5% bonus shares and an 8% cash dividend. The distribution will proceed after approval from the upcoming Annual General Meeting. With a current paid-up capital of Rs 6.48 billion, the total dividend payout amounts to approximately Rs 841.3 million. This announcement is expected to impact the share market as investors react to the news of the payout.

Gold Prices Hit Record High of Rs 261,700

Gold and silver prices reached historic peaks on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Associations, gold surged by Rs 3,400 to hit an all-time high of Rs 261,700 per tola (11.66 grams). This follows Sunday’s rate of Rs 258,300. Internationally, gold traded at USD 4,398.06 per ounce. Similarly, silver rose by Rs 130 to reach a record Rs 4,235 per tola. The sharp increase reflects global market trends where silver reached USD 69.36 per ounce.