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:

Logistics Tenders Invited for March HoR Election

The Election Commission has invited firms to enlist for transporting essential materials for the House of Representatives election scheduled for March 5. Logistics will involve helicopters, trucks, and containers. Interested courier services, possessing 77-district networks, must submit tax clearances through 2024/25. Financial eligibility requires an average annual turnover of Rs 30 million for helicopter providers, Rs 10 million for truck operators, and Rs 3 million for courier firms. Applications for multiple categories will be disqualified. The Commission retains full authority over the final selection of service providers to ensure secure nationwide election logistics.

NRB Simplifies Foreign Investment Rules with Fifth Amendment

Nepal Rastra Bank (NRB) has introduced the fifth amendment to the Foreign Investment and Foreign Loan Management Bylaw, 2021, significantly easing the process for bringing in and repatriating foreign capital. Companies, including those currently blacklisted, can now bring in investment without prior NRB approval, though blacklisted firms must be cleared before repatriating dividends. The amendment also allows IT companies to invest up to USD 20,000 abroad via commercial banks without additional hurdles. Larger IT investments are capped at 50 percent of average export earnings or USD 1 million. These changes aim to make Nepal a more attractive and transparent destination for international investors.

Insurers Pay Out Rs 5.48 Billion for Gen Z Protest Damages

Non-life insurance companies in Nepal have settled Rs 5.482 billion in claims related to the Gen Z protests that occurred on September 8 and 9, 2025. The Nepal Insurance Authority reported that out of 3,316 total claims valued at Rs 23.47 billion, property insurance accounted for the largest share of payouts at Rs 3.93 billion. Additionally, Nepal Reinsurance Company provided Rs 3.2 billion in advance payments to primary insurers. Meanwhile, separate claims for monsoon-related damages since mid-October have seen payouts totaling Rs 196.4 million thus far, primarily for property and engineering risks.

NRB Forecasts Higher Economic Growth for Fiscal Year 2025/26

Nepal Rastra Bank predicts that Nepal’s economic growth for the current fiscal year 2025/26 will exceed average rates due to increased liquidity and monetary easing. The Economic Activity Study Annual Report highlights low inflationary pressure, declining interest rates, and a significant rise in hydropower production as key drivers. While the previous year saw 4.6 percent growth, the central bank expects the construction and manufacturing sectors to expand this year. The report also noted that Bagmati Province continues to dominate the national economy, contributing 36.5 percent to the GDP, while Karnali Province holds the smallest share at 4.2 percent.

Cold Weather Halts Infrastructure Development in Karnali Highlands

Construction activities have come to a standstill in the Himalayan districts of Karnali Province, including Jumla, Humla, and Dolpa, due to extreme cold. Projects involving cement, such as roads, bridges, and buildings, have been suspended as sub-zero temperatures affect material quality. According to the Infrastructure Development Office, Jumla, work on the Luma and Nyaurighat bridges is halted until mid-February. Patarasi Rural Municipality has officially notified contractors to stop cement-related work to prevent substandard construction. This seasonal disruption significantly contributes to the low capital expenditure and developmental challenges faced by the remote region.

Sudurpashchim Government Reverses Decision to Cut Small Projects

The Sudurpashchim Province government has backtracked on its earlier decision to cancel projects with budgets below Rs 1 million. Initially intended as a cost-cutting measure on September 26, 2025, the government reversed its stance to boost capital expenditure, which currently stands at only three percent. Spokesperson Navaraj Ojha confirmed that the Supreme Court’s interim order regarding consumer committees also influenced the reversal. Chief Minister Kamal Bahadur Shah’s administration has now instructed ministries to proceed with small-scale projects and consumer committee-led works. This shift aims to accelerate development activities that had stalled during the first half of the fiscal year.

Flight Fares Decrease Following Fuel Price Cut

The Civil Aviation Authority of Nepal (CAAN) has adjusted the airfare “fuel surcharge” following a reduction in aviation fuel prices. Nepal Oil Corporation reduced fuel prices by Rs 6 per liter, leading to fare drops across various routes starting Friday. The surcharge for the Kathmandu to Dhangadhi route, the longest domestic flight, decreased by Rs 265 to Rs 5,655. Mountain Flight surcharges fell by Rs 210, while the Kathmandu to Simara route saw a reduction of Rs 55. These adjustments aim to make domestic air travel more affordable for passengers nationwide.

10th Export Day to Feature Trade Fair in Thamel

The Export Council of Nepal announced that the “10th Export Day” will be celebrated with a major export fair at Chhaya Center, Thamel, on January 4-5. Council President Naresh Lal Shrestha stated the event aims to promote Nepali handicrafts, agricultural products, and carpets to international markets. Despite Nepal exporting goods worth Rs 93.5 billion in the first four months of the current fiscal year, the sector faces challenges like high transport costs and a lack of cold storage. The fair seeks to attract youth toward entrepreneurship while addressing the trade deficit through increased foreign currency earnings from diverse Nepali products.

Kailali Customs Collects Over Rs 3 Billion in Five Months

The Kailali Customs Office collected Rs 3.207 billion in revenue during the first five months of the fiscal year 2025/26. Despite a target of Rs 3.355 billion, the office achieved 95.60 percent of its goal. According to the office, the slight shortfall is due to decreased imports caused by the economic slowdown. Petroleum products like diesel and petrol remained the top imports, while Rs 463.7 million worth of goods, including resin and plywood, were exported. Total annual targets for the office are set at Rs 9.711 billion.

Syangja Produces Oranges Worth Over Rs 1.32 Billion

Syangja district recorded orange production worth over Rs 1.32 billion this year, marking a Rs 200 million increase from the previous year. The district produced 23,238 metric tons of oranges, sold at a wholesale price of Rs 57 per kg. Productivity rose to 16.37 tons per hectare across 2,400 hectares of orchards. Since being declared a Superzone in the fiscal year 2018/19, commercial farming has expanded in areas like Putalibazar and Waling. Approximately 90 percent of the produce is exported to major cities like Kathmandu and Pokhara.

Pokhara Faces Morning Power Cuts for 4 Days

Electricity supply in Pokhara Metropolitan City, Kaski, will be disrupted for four consecutive mornings starting Friday, according to a notice issued by the Nepal Electricity Authority’s Pokhara Grid Station.  According to the station, power distribution from the Kundahar substation will be halted daily for five hours to carry out maintenance of the 132 kV busbar panel. The outage will run from 6 am to 11 am from Friday through Tuesday. After the four-day maintenance work, electricity supply is expected to return to normal after 11 AM on Monday.

Bharatpur Underground Electrification Project Reaches 83% Completion

The underground electrification project in the urban areas of Bharatpur Metropolitan City has achieved 83 percent progress. Project Chief Engineer Anand Subedi stated that while work is complete in most areas, final installations are pending in key hubs like Hakimchowk, Sahidchowk, and near Birendra College. The project, funded by the Asian Development Bank, is being executed by Tata Projects Limited of India. The total cost has reached Rs 1.4 billion following a Rs 100 million budget increase to include 11 kVA and 400-volt lines. The project is expected to be fully completed by mid-March.

NRB Study Links Youth and Students to Illegal Crypto Trading

A strategic analysis report by Nepal Rastra Bank’s (NRB) Financial Information Unit reveals a surge in illegal cryptocurrency and virtual asset trading despite legal bans. The report identified 658 suspicious transactions over four years, with cases rising from 13 in 2021 to 252 in 2024. Data shows that 92 percent of those involved are aged 21 to 40, with students making up 29 percent of offenders. Most suspicious activities were reported by commercial banks, as users utilize banking systems and Hundi for payments. The central bank expressed concern over the high involvement of the younger generation in digital betting and unregulated virtual markets.

Gold & Silver Price Continue to Rise

The price of gold and silver has increased in the market on Friday. Gold has increased by Rs 2,900 per tola (11.66 grams) and is being traded at Rs 262,500 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. On Thursday, the price of gold was fixed at Rs 259,600 per tola. Similarly, the price of silver has also increased today. The Federation has stated that silver is being traded at Rs 4,415 per tola today, up by Rs 10. On Thursday, the price of silver was fixed at Rs 4,415 per tola.