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:

NRB Eases Profit Repatriation Rules for Foreign Investors

Nepal Rastra Bank (NRB) has amended the Foreign Investment and Foreign Loan Management Bylaw 2021 to simplify profit repatriation. Foreign investors no longer require prior approval from the central bank to send dividends, profits, or proceeds from share sales back to their home countries. Governor Biswo Nath Poudel stated that the move aims to reduce paperwork and encourage investment. Investors can now apply directly at commercial banks with the necessary documents. However, liquor industries must still follow specific 2021 technology transfer regulations for royalty payments unless they export 100 percent of their products.

NRB Bond Receives Massive Rs 1.22 Trillion Subscription

The first-ever “Nepal Rastra Bank Bond” issued yesterday received overwhelming interest, with applications exceeding the offer by 48.82 times. While NRB aimed to raise Rs 25 billion, at least 32 financial institutions submitted bids totaling Rs 1.22 trillion. The one-year bond was finalized with an average interest rate of 2.64 percent. These bonds, which mature on December 29, 2026, can be used as collateral for loans. The high subscription volume reflects significant excess liquidity currently held by commercial banks, development banks, and finance companies in the market.

Consolidated Fund Faces Deficit of Rs 108.99 Billion

The Office of the Auditor General presented the integrated financial report for the fiscal year 2024/25 to Finance Minister Rameshore Khanal on Tuesday. The report reveals that the consolidated funds of all three levels of government are in a deficit of Rs 108.99 billion due to failure to meet revenue targets. Despite this deficit, the overall cash position remains positive by Rs 104.13 billion. Auditor General Shobhakant Paudel announced that while the government often manages expenses through Nepal Rastra Bank overdrafts, the gap between high revenue targets and actual collection remains a significant pressure.

Finance Ministry Pledges Rs 2.19 Billion for Ilam Disaster Relief

The Ministry of Finance has approved a source agreement of Rs 2.19 billion for the reconstruction of roads and bridges in Ilam damaged by floods on October 4 and 5. Minister Kulman Ghising directed the Department of Roads to begin tenders for the Mechi Highway, Maikhola Bridge, and Mechi Corridor. Currently, Rs 540 million has been released for immediate work. Following the disaster that killed 39 people, the government declared Ilam a “crisis zone” on October 9. At least Rs 1.5 billion is specifically earmarked for the Mechi Highway’s permanent restoration.

Minister Ghising Warns Contractors Over Delay in Road Repairs

Minister for Physical Infrastructure and Transport Kulman Ghising announced on Tuesday that construction contractors will face heavy penalties for delaying road repairs. Speaking at the 23rd anniversary of Road Board Nepal, Ghising emphasized that the government will no longer tolerate repeated delays and will cancel contracts if necessary. He noted that while the demand for repairs is high across federal and provincial levels, budget constraints remain a challenge. Director General Dr. Bijay Jaisi and Secretary Keshav Kumar Sharma added that timely maintenance is vital, as delays can increase reconstruction costs by three to four times.

Karnali’s Ministry Collects Over Rs 125.7 Million in Revenue

The Ministry of Physical Infrastructure and Urban Development of Karnali Province reported a total revenue collection of Rs 125.7 over the first five months (July 17 to December 15) of the current fiscal year 2025/26. According to Senior Division Engineer Ramesh Subedi, the funds were collected through transport service offices in three locations. The Surkhet office contributed the highest amount at Rs 110.9 million, while Chaurjahari and Jumla collected Rs 8.3 million and Rs 6.5 million, respectively. The revenue includes income from driver’s licenses, vehicle registrations, taxes, and administrative fines across the province.

Lamjung Court Fails to Recover Rs 105 Million in Fines

The Lamjung District Court reported an outstanding balance of some Rs 105 million in uncollected fines as of November 16. Additionally, the court has yet to implement prison sentences totaling 343 years, nine months, and 13 days. Officials attributed the delay to manpower shortages and the deaths of some defendants. Despite the slow recovery of fines, the court has been efficient in clearing its backlog; by December 15, it settled 386 cases, exceeding its target of 275 by 40 percent for the current fiscal year 2025/26.

Commerce Department Penalizes 2 Firms, Warns 15 Others in Lalitpur

The Department of Commerce, Supplies and Consumer Protection inspected 17 firms in Lalitpur on Tuesday. During the monitoring, the department fined Shakti Marbles in Ekantakuna Rs 20,000 and RK Brothers in Hattiban Rs 15,000 for non-compliance with the Consumer Protection Act, 2018. While two firms faced immediate financial penalties, the remaining 15 were issued corrective instructions. The department stated that market inspections will continue in coordination with local administration and representatives to control black marketing and ensure fair trade practices for consumers.

IT Companies Granted USD 20,000 Foreign Investment Facility Without Conditions

Nepal Rastra Bank (NRB) has introduced a new provision allowing IT service exporters to invest up to USD 20,000 abroad without specific conditions. Through an amendment to the Foreign Investment and Foreign Loan Management Bylaw 2021, the central bank aims to support the global expansion of the IT sector. Companies that have earned foreign currency through exports for the last three fiscal years can access this facility. For larger investments, companies can exchange up to 50 percent of their average annual earnings or USD 1 million, whichever is lower, provided they stay within their paid-up capital limits.

Gold price declines in market

Gold prices in the local market declined slightly on Tuesday, falling by Rs 7,900 per tola (11.66 grams). According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 7,900 per tola to Rs 262,100. On Monday the price stood at Rs 270,000 per tola. Similarly, the price of silver decreased by Rs 305 per tola today to Rs 4,590 per tola, according to the federation.