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 10.53 Points as Daily Turnover Hits Rs 4.77 Billion

The Nepal Stock Exchange (NEPSE) index, which had increased significantly on the first trading day of the week, witnessed a double-digit decline on the second day. On Monday, the NEPSE index fell by 10.53 points, closing at the 2,622.88 mark. During the session, 10,037,307 units of shares from 337 companies were traded 69,548 times, resulting in a total turnover of Rs 4.774 billion. Except for the Development Bank and Mutual Fund sectors, all other sub-indices ended in the red. While SY Panel Nepal saw its share price hit the positive circuit, Win Nepal Laghubitta Bittiya Sanstha experienced a negative circuit. SY Panel Nepal also recorded the highest turnover of Rs 230.2 million, while Ngadi Group Power led in volume with 302,900 shares traded.

NRB Withdraws Rs 25 Billion From Market

Nepal Rastra Bank (NRB) is set to withdraw Rs 25 billion from the banking system today, Monday, through the issuance of the “Nepal Rastra Bank Bond 2025 ‘A’.” The move aims to manage excess liquidity in the market. According to the notice issued today, the interest rate was determined through a bidding process at 2:00 PM, with payments made every six months. Only “A,” “B,” and “C” class financial institutions are eligible to participate, with a minimum investment threshold of Rs 50 million. The principal amount is scheduled for repayment on December 29, 2026.

Nepal Faces Staggering Rs 163.73 Billion Trade Deficit With China

The trade imbalance between Nepal and China has reached critical levels, with imports outstripping exports by 351 times in the first five months (July 17 to December 15) of the fiscal year 2025/26. According to the Department of Customs, Nepal imported goods worth Rs 163.73 billion while exporting only Rs 460 million. The Nepal Trans Himalaya Border Commerce Association attributed this to Chinese policies rather than infrastructure. Despite the opening of the Korala and Rasuwagadhi borders, Nepali products struggle to enter the Chinese market. Experts suggest seeking zero-tariff facilities and attracting Chinese investment in local manufacturing to mitigate the widening deficit.

Student Outflow Drains Rs 48.25 Billion in Foreign Currency

In the first four months (July 17 to November 16) of the current fiscal year, Nepal saw an outflow of Rs 48.25 billion in foreign currency for international education. This marks a 28 percent increase compared to the same period last year, which saw Rs 37.76 billion depart. Conversely, foreign students in Nepal contributed only Rs 1.2 billion. Since the COVID-19 pandemic, the drain has accelerated, with Rs 1.38 billion leaving in the previous full fiscal year. While some experts view this as a long-term gain in skills and remittances, others warn that political instability and a lack of domestic opportunities are forcing youth away.

Nepal Police Collects Over Rs 402.5 Million Revenue in a Month

The Nepal Police collected a total revenue of Rs 402.5 million in a month (November 17 to December 15) through various law enforcement actions. According to Nepal Police Headquarters, Naxal, at least Rs 179.5 million was generated from seized illegal goods and Rs 123.7 million from court verdict implementations. Additionally, traffic fines contributed Rs 71.5 million, while seizures of illegal gold and silver added Rs 8.9 million. Other collections included funds from illegal Hundi operations, unexplained cash sources, and the unauthorized extraction of river-based materials and timber.

NAC Sends Narrowbody Aircraft to Israel for Engine Exchange

Nepal Airlines Corporation (NAC) has initiated the process of exchanging the engine for its Narrowbody A-320 aircraft. According to a press release issued on Monday, the corporation reached an agreement with Israel Aerospace Industries (IAI) regarding engine maintenance and leasing costs. This understanding was finalized through negotiations based on the existing “Maintenance with Lease Support” contract. The aircraft departed Kathmandu for Dubai on December 28 and is scheduled to arrive in Tel Aviv, Israel, on December 29. NAC expects the aircraft to return to Nepal by the second week of January after the engine installation is complete.

Tanahu Hydropower Project Reaches 72 Percent Physical Progress

The 140 MW Tanahu Hydropower Project on the Seti River has achieved 72 percent physical and 66 percent economic progress. Project chief Shyamji Bhandari noted that while the powerhouse civil works are 98 percent complete, the dam site (Package-1) and transmission lines (Package-3) remain critical. Package-1, handled by a Vietnamese-Nepali venture, is at 47 percent progress, having started 2.5 years late due to initial contract defaults. The 220 kVA transmission line to Bharatpur faces delays regarding forest clearance and funding. Supported by ADB and JICA, the USD 505 million project is targeted for completion before the first month of the next fiscal year.

Mechi Customs Implements Online Valuation Software Trial

The Mechi Customs Office in Kakarbhitta has launched a trial of an online valuation software system to streamline trade. Instead of using a reference price list, the system bases customs duties on actual transaction prices, aiming for transparency and speed. Chief Tax Officer Shivalal Neupane noted the system will be implemented in eight customs offices across Nepal, including Bhadrapur. For the fiscal year 2025/26, Mechi Customs has a revenue target of Rs 18.877 billion. In the first five months (July 17 to November 16), the office has already collected Rs 6.82 billion.

Department Fines Three Firms for Consumer Protection Violations

The Department of Commerce, Supplies, and Consumer Protection took action against 17 industries and firms following market inspections. Three entities were fined a total of Rs 110,000 for offenses under the Consumer Protection Act, 2018. Specifically, Samjhana Achar Udhyog was fined Rs 10,000, while Aarohan Fashion Craft and Sadhana Suppliers were each fined Rs 50,000. The remaining 14 firms received corrective instructions. The department maintains regular monitoring to ensure market fairness and control black marketing, focusing on protecting consumer rights and maintaining transparency in commercial activities.

5 Construction Firms Blacklisted for Breach of Contract

The Public Procurement Monitoring Office (PPMO) blacklisted five construction and supply companies on Monday for failing to complete projects as per their agreements. Kanchharam Construction and the Chinese firm Chongqing International Construction Corporation (CICO) have been blacklisted for one and a half years following recommendations from the Rural Road Network Improvement Project. Similarly, Dragon Construction faced a one-and-a-half-year ban. Furthermore, Singdan Suppliers and Construction and Bishal Nirman Sewa were blacklisted for one year each. These firms are prohibited from participating in any public procurement processes during their respective suspension periods.

Madi Residents Demand 50 Percent Share in Hydropower Projects

Local residents of the Madi River area in Kaski submitted a 22-point memorandum demanding a 50 percent share in local hydropower projects. Led by Mahendra Gautam, the group urged the Madi Rural Municipality to declare all 12 wards as “affected areas” and ensure easy investment access for low-income families. They expressed concerns that the Bajra-Madi project tunnel might dry up water sources near the historic Bhagawati Temple. The demands include electricity subsidies, environmental protection through the planting of 25 trees for every one cut, and regular release of water for cremation and rituals.

Gold Price Declines, Silver Rises on Monday

The price of gold in the market declined on Monday. After rising by Rs 1,300 per tola (11.66 grams) on Sunday to reach an all-time high, the gold price saw a slight drop on Monday. On Monday, gold is being traded at Rs 270,000 per tola, which is Rs 600 lower compared to the previous day. On Sunday, gold was traded at Rs 270,600 per tola. Meanwhile, the price of silver increased on Monday. Silver, which was traded at Rs 4,835 per tola on Sunday, has risen to Rs 4,895 per tola today. This marks an increase of Rs 60 per tola compared to the previous day. In the international market, gold is being traded at USD 4,514 per ounce today.