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 Surges 42 Points with Transactions Exceeding Rs 11.85 Billion

The Nepal Stock Exchange (NEPSE) index climbed 42.26 points on Tuesday, closing at 2,714.81 points. This 1.58 percent increase saw the hotel and tourism sector lead gains at 3.36 percent. Total turnover crossed Rs 11.85 billion from the trade of over 25.1 million shares. NRN Infrastructure and Development recorded the highest turnover, while Gurkhas Finance hit a 10 percent upper circuit. Despite the overall green market, SBL debenture investors faced the highest loss, with prices dropping by 4.23 percent.

Social Security Fund Eases Loan Rules for Members

The Social Security Fund (SSF) has amended its guidelines to allow contributors to access special loans after just 12 months of regular contributions. Previously, a 36-month period was required. Contributors can now borrow between Rs 10,000 and 80 percent of their accumulated savings at an interest rate of 5.2 percent. Other facilities, including home and educational loans, now require 18 months of contribution. Currently, some 2.7 million individuals are enrolled in the fund, including over 2 million foreign migrant workers and 667,000 formal sector employees.

Oxfam Report Reveals Nepal’s Top 1 Percent Own 519 Times More than Poor

A startling report by Oxfam International, released on Tuesday, highlights extreme wealth inequality in Nepal. The wealthiest 1 percent of the population holds 519 times more assets than the poorest 50 percent. Specifically, the top 1 percent controls 24.5 percent of national wealth, while the bottom half shares only 4.7 percent. Furthermore, food insecurity has risen by 40 percent since 2019, affecting 36.6 percent of Nepalis. Globally, billionaire wealth surged 16 percent to USD 18.3 trillion, with Elon Musk becoming the world’s richest individual at USD 500 billion.

Govt. Launches National Employment Scheme with Rs 2 Billion Budget

The Ministry of Labour, Employment, and Social Security has officially replaced the Prime Minister Employment Program (PMEP) with the National Employment Promotion Program. According to the ministry on Tuesday, the new scheme will operate across all 753 local units. Unlike the previous program, which faced criticism for unproductive tasks, this initiative focuses on skill development, entrepreneurship, and reintegrating migrant workers. The government has allocated Rs 2 billion for this fiscal year, mandating that 80 percent of training be practical to meet market demands.

Water Ministry Budget Shrinks by Rs 16.44 Billion

The Ministry of Water Supply faces a severe funding crisis as its budget allocation dropped from 2.92 percent of the national total in 2020/21 to just 1.43 percent in 2024/25. Over five years, the sector’s funding decreased by Rs 16.44 billion. Officials warn this decline jeopardizes the “One House, One Tap” campaign and Sustainable Development Goals for 2030. While the government aims to provide safe water to 50 percent of the population, shrinking resources and drying water sources due to climate change threaten existing projects and the completion of new initiatives.

Government Approves Rs 406 Billion Investment for Budhigandaki Project

The government officially approved the financial modality for the 1,200-megawatt Budhigandaki Hydropower Project. The total project cost, including interest during construction, is estimated at Rs 406 billion. Funding will consist of 70 percent debt and 30 percent equity. So far, Rs 168 billion has been collected through fuel infrastructure taxes since the fiscal year 2015/16. The project, spanning Dhading and Gorkha, has already distributed Rs 42 billion in compensation. Full-scale construction is slated to begin in 2028, with a completion target of eight years.

Karnali to Receive 132 KV Transmission Line by February 3

Construction of the Kohalpur-Surkhet 132 kV transmission line is nearly complete, with charging scheduled for February 3. Project chief Rabi Chaudhary stated that only one kilometer of wiring remains within the National Park area. Although fog delayed work near the Harre area, the Rs 700 million project by RS Infraprojects has reached 100 percent physical progress. This marks the first time Karnali Province will be connected to a high-capacity line, expected to resolve chronic low-voltage issues and power outages across 10 districts. The line was initially delayed by local disputes in Banke before government intervention.

Lumbini Province Capital Spending Hits Only 18 Percent

Lumbini Province recorded a total expenditure of 20.45 percent, or Rs 7.95 billion, out of its Rs 38.91 billion annual budget by January 14. Capital spending was sluggish at 18.04 percent, totaling Rs 4.23 billion. The Health Ministry led performance at 42.10 percent, while the Internal Affairs Ministry trailed at 6.55 percent. Despite repeated reminders from the federal government, several ministries, including Sports and Social Development, reported single-digit progress. Meanwhile, the Economic Affairs Ministry spent 16.70 percent, and the Chief Minister’s Office utilized 14.25 percent of its allocated funds.

Gandaki Province Spends Only 16 Percent of Rs 31.97 Billion Budget

Gandaki Province spent only 16 percent of its Rs 31.97 billion budget in the first six months of the current fiscal year. By January 14, expenditures totaled Rs 5.33 billion. Performance lagged behind the previous year’s 19 percent due to administrative disruptions following the Gen Z protests. Capital expenditure was particularly low at 14.13 percent. The Ministry of Physical Infrastructure spent 16.16 percent of its Rs 12 billion allocation, while the Industry Ministry spent less than 5 percent. Revenue collection also struggled, reaching only 31.72 percent of the annual target.

Nepal Receives 30,000 Tons of G2G Urea from India

The first railway consignment of urea fertilizer purchased through a Government-to-Government (G2G) agreement with India arrived in Birgunj. This shipment is part of a 30,000-ton urea consignment destined for Madhesh, Bagmati, and Gandaki provinces. Additionally, 25,000 tons of DAP and another 30,000 tons of urea from global tenders have recently entered Nepal. Agriculture Inputs Company Limited reported that 17,500 tons of potash are currently at Visakhapatnam port. Between mid-July and mid-January, the Birgunj office distributed over 50,000 tons of urea and 33,000 tons of DAP across 15 districts.

Inland Revenue Office Jumla Misses Half-Yearly Collection Target

The Inland Revenue Office in Jumla, which oversees Jumla, Kalikot, and Mugu, failed to meet its mid-year revenue target by Rs 31.1 million. Against a goal of Rs 201.3 million for the period ending January 14, only Rs 15.98 billion was collected. The office serves 19,042 taxpayers, but geographic hurdles and low compliance in remote areas have slowed progress. With an annual target of Rs 640 million, officials are intensifying taxpayer education programs to recover the remaining Rs 480 million by the end of the fiscal year in mid-July.

Ilam Businesses Protest Removal of Taxpayer Service Office

Business owners in Ilam have launched protests following the government’s decision to shut down the local Taxpayer Service Office under the Inland Revenue Department. The closure forces traders from Ilam, Panchthar, and Taplejung to travel to Bhadrapur, Jhapa, for tax clearance and banking documentation. The Ilam Chamber of Commerce and Industry submitted a memorandum to the Finance Minister on Tuesday, highlighting that the office previously collected over Rs 800 million annually. Construction contractors warned they might be blacklisted or barred from tenders starting January 16 if tax clearance certificates are not issued promptly.

Gold and Silver Prices Surge to Record Rs 284,700 and Rs 5,880

Gold and silver prices continued their record-breaking streak in the local market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold surged to Rs 284,700 per tola (11.66 grams), while silver reached Rs 5,880 per tola today. This follows a steady climb from Sunday, when gold was Rs 278,800. Internationally, gold traded at USD 4,690 and silver at USD 94 per ounce. Analysts attribute the spike to global economic uncertainty, rising inflation, and geopolitical tensions driving investors toward safe-haven assets.