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 Slips Below 2,600, Investors Lose Rs 49 Billion Amid Weak Trading:
Nepal Stock Exchange (NEPSE) fell 29.16 points (1.12 percent) last week, closing at 2,585.87 points amid a continued slowdown in share trading. The market, which operated for only four days due to a public holiday on Thursday, opened at 2,615.25 points and witnessed a weekly volatility of 47.31 points. Losses dominated most sessions, with life insurance plunging the most at 3.36 percent, while only mutual funds posted gains. Total turnover dropped sharply by 24.13 percent to Rs 14.69 billion. Market capitalization declined by Rs 49 billion, erasing the previous week’s gains.

Smartphone Imports in Nepal Rise 26%, Market Reaches Rs. 26.79 Billion:
Nepal’s smartphone imports have surged, driven by rising consumer demand. According to the Department of Customs, mobile phones worth Rs. 19.3 billion were imported in the first five months of FY 2082/83, totaling 1.07 million units. Including taxes, margins, and retail markups, the market value of these smartphones has reached Rs. 26.79 billion. Compared to the same period last year, imports increased by 26%. Popular models range from Rs. 20,000–35,000, with an average price of Rs. 25,000–30,000. The steady rise reflects strong adoption of higher-end smartphones among Nepali consumers.

Trade Surpasses Rs. 11 Billion at Korala Border as EV Imports Surge Despite Harsh Winter:
Since the full operation of the Korala border on September 30, trade between Nepal and China through Mustang Customs has exceeded Rs. 11 billion, with imports totaling Rs. 10.82 billion and exports worth Rs. 189.78 million, mainly handicrafts. A total of 2,074 electric vehicles (EVs) have entered Nepal, with over 500 BYD EVs imported this month alone. Customs revenue has reached Rs. 5.06 billion. Despite extreme winter temperatures dropping to minus 20°C, trade and EV transport to Pokhara and other destinations continue, keeping charging stations busy. Daily movement of 10–12 cargo containers maintains robust cross-border commerce and growing electric mobility in Nepal.

Gold Prices Jump Rs 10,900 Per Tola in a Week as Global Uncertainty Fuels Demand:
Gold prices in Nepal surged sharply last week, rising by Rs 10,900 per tola to close at Rs 269,300, according to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA). The price climbed from Rs 258,400 per tola despite a marginal decline at the start of the week. Gains were recorded on most trading days, with notable increases on Monday and Tuesday, before minor corrections midweek. FENEGOSIDA attributed the volatility to ongoing global geopolitical tensions and growing investor interest in bullion ahead of the New Year 2026. Silver also hit a record high, rising Rs 560 per tola.

Cardamom Exports Surge 60% While Tea Exports Decline in Nepal:
Nepal’s cardamom exports have risen sharply by 60.1 percent in the first five months of fiscal year 2025/26, reaching Rs. 5.533 billion, according to Mechi Customs Office. A total of 2,622.10 metric tons of cardamom were shipped abroad during this period, compared to Rs. 3.456 billion worth in the same period last year. However, tea exports have declined by 31.4 percent over the same period. The growth in cardamom exports highlights increasing global demand for Nepali spices, while the drop in tea exports points to challenges in the country’s tea sector, including market access and competitive pricing pressures.

Reliance Spinning Mills IPO Oversubscribed 33 Times, Only 18,500 Applicants to Receive Shares:
Reliance Spinning Mills’ IPO has been oversubscribed 32.98 times, with 583,896 applicants applying for 3.05 crore shares worth Rs. 25.03 billion, according to CDS & Clearing Limited. The IPO, issued at Rs. 820.80 per share from January 22, saw applications far exceeding the 9.24 lakh shares available to the public. Allocation will be conducted through a lottery system, meaning only around 18,500 applicants will receive shares, leaving over 565,000 applicants without allocation. Each applicant had to apply for a minimum of 50 shares. The overwhelming response reflects strong investor interest in the company despite limited available shares.

Non-Life Insurance Companies See Premium Growth Following Gen-Z Movement:
Non-life insurance companies in Nepal have shown notable business growth after setbacks caused by the Gen-Z movement. According to the Nepal Insurance Authority, 14 non-life insurers collected Rs. 19.48 billion in premiums in the first five months of the current fiscal year, a 13.46% increase over the same period last year. While floods, landslides, and civil unrest previously affected profitability due to high claim payouts, rising awareness of insurance among the public is driving demand. Most companies, except government-owned insurers, reported substantial growth in policies sold.

Nepal Rastra Bank Proposes AI Guidelines to Transform Banking and Finance:
Nepal Rastra Bank (NRB) has unveiled a draft guidance to facilitate the use of artificial intelligence (AI) in the banking and financial sector, inviting suggestions by January 15. Licensed institutions will be able to deploy AI in credit scoring, fraud detection, customer service, risk management, and compliance monitoring. The guidance emphasizes responsible, transparent, and ethical AI use, focusing on data quality, cybersecurity, and non-discriminatory outcomes. Boards and management will oversee AI decisions, with systems classified by risk. NRB expects the framework to improve efficiency, ensure governance, reduce cyber risks, and promote an inclusive financial sector offering affordable, accessible services.

AI Adoption to Reshape Nepal’s Banking Sector: Job Risks and Opportunities by 2027:
The rapid adoption of AI, digital banking, and fintech in Nepal is transforming the banking sector, creating both challenges and opportunities for employment. By 2027, AI is projected to automate customer support, loan evaluation, auditing, and risk management, potentially putting thousands of banking jobs at risk. Digital payments, mobile banking, and wallets have surged, reducing the need for counter staff and traditional branches. While cybersecurity specialists, AI engineers, and data analysts are in increasing demand, rural connectivity and cyber threats remain concerns. Experts recommend employee retraining, rural digital expansion, fintech investment, and human-AI collaboration to turn technological disruption into growth opportunities.

Indira Sugar Mill Defaults on Rs. 70 Million Dues, Farmers Left Unpaid in Nawalparasi:
Indira Sugar Mill in Pratappur, Nawalparasi (West), owes farmers Rs. 70 million and shows no signs of resuming operations despite the ongoing sugarcane season. Operators are reportedly in India, leaving only security staff at the factory, with no maintenance underway. Efforts are being made to recover dues by selling remaining raw materials. In contrast, Bagmati and Lumbini sugar industries have started operations, procuring sugarcane and assuring timely payments. Farmers face additional delays as Rs. 35 per quintal of last year’s promised government subsidy remains unpaid, leaving nearly Rs. 80 million in subsidies and dues pending, heightening economic stress for local farmers.

Tribhuvan Airport Expansion Hit by Raw Material Shortage Amid Legal Disputes:
Tribhuvan International Airport’s long-awaited expansion has stalled for over a month due to a raw material shortage. Stone, gravel, and soil sourced from three Godavari quarries were blocked after legal disputes involving quarry operators, local government, and the Forest Office. The delays have slowed runway, taxiway, and apron works, with only soil work continuing. The airport authority notes aggregate material is now slowly arriving, but project timelines may be affected. Total airport modernization, including parking expansion and hangar construction, is expected to cost NPR 15 billion and conclude by 2026, aiming to meet growing air traffic demand.

Kavrepalanchok Revives Namo Buddha–Balthali Trekking Route to Boost Tourism and Agro-Economy:
A seven-kilometre hiking programme from Namo Buddha to Balthali was organised to promote heritage tourism and revive traditional trekking routes in Kavrepalanchok district. Led by the Hotel Association of Nepal, Kavrepalanchok, with Dhulikhel Municipality Tourism Council support, the initiative also highlighted local orange farming in Shankha, Chinde, and Balthali. About 150 participants, including entrepreneurs, officials, and journalists, joined the hike. Organisers aim to attract 1,000 tourists per month during the orange season and plan further trail development linking trekking with agro-tourism. Local authorities emphasised coordinated efforts to harness the district’s tourism potential, enhancing both economic benefits and cultural heritage promotion.

Government Grants Work Permits for Returning Nepali Workers from Iraq:
The government has decided to provide labor permits to Nepali workers returning from Iraq after completing necessary procedures. Previously, workers could not obtain permits as Iraq was listed as a “restricted” or “high-risk” country for foreign employment. The decision covers Nepalis with official Iraqi visas and residency cards, allowing them to legally continue their employment. Applicants must submit their original residency card and a photocopy to the Department of Foreign Employment. The move ensures job security, reduces reliance on illegal routes, facilitates bank-based remittances, and enables access to financial support from the Foreign Employment Welfare Fund in case of accidents or fatalities.

Kamala Bridge Construction Accelerates After 14-Year Delay on Hulaki Highway:
The long-delayed Kamala Bridge, spanning 469 meters over the Kamala River on the Siraha-Dhanusha border of the Hulaki Highway, is finally progressing toward completion. Despite a contract signed in 2068 BS (2011) with Pappu-Lumbini JV and an initial completion deadline of 2071 BS, construction was stalled for 14 years. Recent works include lifting damaged slabs, completing the substructure on the Siraha side, and preparing plate girders in Chitwan for installation. The Energy, Water Resources, Physical Infrastructure, and Urban Development ministers have ordered expedited construction, with temporary pipe arrangements allowing river crossing. Road access and riverbank works will start after finalizing design adjustments post-floods.

Nepal Tea Industry Brews Economic Growth, Yet Faces Export Challenges:
Nepal’s tea sector has grown from a local beverage to a vital part of the rural economy and foreign exchange earnings. With roots in Jhapa and Ilam, commercial plantations now sustain over 60,000 livelihoods. Orthodox and CTC teas earn international recognition, but most exports pass through India as raw or semi-processed leaves, limiting domestic value addition. In FY 2081/82, Nepal exported over NPR 4.59 billion worth of tea while importing only NPR 9 million, yielding substantial net profits. Experts stress branding, processing, and direct third-country exports could elevate Nepalese tea to global recognition and higher profitability.

Government Prepares to Reissue Terminated Infrastructure Contracts After Completing Legal and Budget Procedures:
The government is set to reissue terminated infrastructure contracts after completing required legal and budgetary procedures, following decades of unfinished projects. Over the past 15–20 years, ministries including Physical Infrastructure and Transport, Urban Development, and Energy and Water Resources have terminated more than 66 contracts. Secretary Keshav Sharma noted that reissuing contracts will take time, as post-termination processes—penalties, security forfeiture, and measurement of completed work—must be finalized. Currently, 304 contracts remain stalled across 37 agencies, with 235 delayed due to contractor inefficiency. Once procedures and budget approvals are complete, new tenders will be issued to ensure timely project execution.

Task Force Recommends Rastriya Banijya Bank IPO to Take State-Owned Bank Public:
The Banking Sector Reform Recommendation Task Force has advised the government to take Rastriya Banijya Bank (RBB) public through an initial public offering (IPO). With a capital base of Rs. 15.63 billion and a paid-up capital of Rs. 25.63 billion, RBB is Nepal’s largest state-owned commercial bank. Issuing 30 percent of shares could raise around Rs. 4.69 billion. While other state banks and 19 of 20 commercial banks have already floated shares, RBB’s IPO has long been pending due to lack of government initiative. RBB posted Rs. 3.81 billion in net profit in FY 2024/25 and Rs. 598.7 million in Q1 of FY 2025/26.

19th Elephant and Tourism Festival Kicks Off in Sauraha to Boost Tourism and Conservation:
The 19th Elephant and Tourism Festival began in Sauraha, Chitwan, aiming to revive tourism and promote elephant conservation. Held at Baghmara Buffer Zone Community Forest, the four-day event was inaugurated by Bagmati Province Chief Minister Indra Bahadur Baniya. The festival features cultural shows, sports, elephant beauty contests, health camps, and interaction programmes. Hotel occupancy, currently around 40 percent, is expected to rise to 60 percent, with local businesses offering discounts to attract tourists. Nepal Tourism Board CEO Deepak Raj Joshi highlighted elephants’ cultural significance and the festival’s role in linking tourism with conservation, emphasizing regenerative tourism and long-term population enhancement initiatives.

Gulmi Orange Farmers Enjoy Direct Sales Despite 32% Drop in Production:
While farmers across Nepal face market challenges, orange growers in Gulmi are enjoying a successful season as traders purchase produce directly from orchards. In Kaligandaki Rural Municipality, farmers like Khimananda Pandey and Jiblal Pandey sold their oranges at Rs. 50 per kilogram without market hassles. The municipality supports fruit cultivation with a Rs. 400 per-pit subsidy to promote self-reliance. Despite these gains, district-wide orange production fell by 32% this year due to unseasonal rainfall, fruit drop, pests, and poor orchard management. About 5,000 tonnes were harvested from 603 hectares, valued at Rs. 206.78 million, sold in regional markets like Butwal, Narayangadh, and Pokhara.

Government Allows Subdivision of Land Under Power Line Corridors, Safeguards Remain:
The government has introduced a new provision under the third amendment to the Land Use Regulation 2022, allowing landowners to subdivide land located within electric transmission line corridors while retaining ownership. Published in the Gazette on November 13, 2025, the regulation aims to address construction and ownership challenges. Although subdivision is permitted, safety standards remain strict, prohibiting structures, tall trees, or risky activities within the right-of-way. Compensation of 10–25% of assessed land value is provided to landowners. The rule facilitates legal land transactions, previously restricted, enabling owners to transfer, mortgage, or utilize their land while ensuring operational safety of transmission lines.