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:

Gold Price Hits All-Time High, Crosses Rs 300K Mark

The local market witnessed a historic surge on Friday, with gold prices crossing the Rs 300,000 threshold for the first time. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 9,200 to reach a record Rs 301,400 per tola (11.66 grams). Silver also touched an all-time high, climbing Rs 320 to settle at Rs 6,190 per tola. This domestic spike follows a massive rally in the international market, where gold soared to USD 4,960 and silver reached USD 98 per ounce amid global economic shifts.

Government Accepts USD 2 Million Grant for Siddhartha Highway Upgrade

The Council of Ministers meeting yesterday approved a USD 2 million grant from the Asian Infrastructure Investment Bank (AIIB). The funds are designated for the preparation of the Siddhartha Highway’s Butwal–Pokhara road section improvement project. During the same meeting at Singha Durbar, the government officially designated Home Minister Om Prakash Aryal as the government spokesperson and extended the tenure of the high-level commission investigating the Gen Z protest damages.

Market Monitoring Intensifies with 51 Firms Inspected in Three Days

The Department of Commerce, Supplies and Consumer Protection inspected 51 firms in Kathmandu, Lalipur, and Bhaktapur over three days. One firm was fined Rs 201,000 for violations under the Consumer Protection Act 2018. Another firm was fined Rs 50,000, while several others were summoned for documentation. Director Narhari Tiwari stated the department is cracking down on artificial shortages, black marketing, and the lack of MRP labels. The department aims for “zero tolerance” against syndicates to ensure a transparent, consumer-friendly market.

Finance Ministry Decentralizes Tax Services to 56 Local Centers

Finance Minister Rameshore Khanal announced that the government has intensified the expansion of tax services to the local level to facilitate taxpayers. Following the dissolution of 36 Inland Revenue Offices, services such as issuing Permanent Account Number (PAN) certificates are now being provided through local units. Currently, 34 District Treasury and Controller Offices (DTCOs) and 22 local units have started providing these services. Residents of remote areas like Chumnubri in Gorkha and Khumbu Pasang Lhamu in Solukhumbu can now fulfill tax obligations in their own villages, saving time and costs.

Nepalgunj Customs Collects Rs 9.346 Billion in Six Months

The Nepalgunj Customs Office collected Rs 9.346 billion in revenue during the first half of the fiscal year 2025/26, reaching 38.08 percent of its annual target of Rs 24.547 billion. According to the Information Officer Pabitra Kumar Khadka of the Customs Office, the office failed to meet its monthly targets for all six months, with the highest collection of Rs 1.741 billion occurring from September 17 to October 17, 2025. Total trade reached Rs 38.98 billion, with imports at Rs 37.62 billion and exports at only Rs 1.35 billion, resulting in a high trade deficit of 96.38 percent.

Steel Exports Crash 80% as Indian Tariffs Hit Nepali Firms

The country’s iron and steel exports have seen a massive decline in the first six months of the current fiscal year. Export of iron sheets dropped by 80 percent, falling from Rs 4.7 billion to Rs 780 million. MS Steel Strip exports also plummeted from Rs 630 million to just Rs 20 million. Industry experts like Rajesh Agarwal blame India’s new 12 percent “safeguard duty” on steel imports and delays in BIS certification renewals for Nepali firms like Aarti Strips. Domestic production has also slowed to 35-40 percent capacity due to a slump in the local construction sector.

Formal Remittance Grows, Yet Hundi Keeps Nepal in Grey Economy Trap

Nepal Police arrested 12 individuals and seized Rs 11.5 million related to illegal Hundi operations between July and December 2025. Despite government incentives like a 1 percent higher interest rate for formal channels, Hundi remains prevalent. Data shows that in the last seven years, 279 people were caught with Rs 35.644 billion in unverified cash. Researchers have noted that 41 percent of Nepal’s economy remains informal. While remittance through formal channels reached Rs 870.31 billion in five months, Hundi continues to hinder Nepal’s exit from the FATF “Grey List.”

CDSC Halts Share Dematerialization, Citing Dual ISIN Dispute

CDS and Clearing (CDSC), led by CEO Prawin Pandak, has suspended the dematerialization and lock-in processes for several listed companies, including Emerging Nepal and Pure Energy. The dispute centers on CDSC’s attempt to implement a “dual ISIN” system for promoter and public shares, a move not yet approved by the Securities Board of Nepal. Pure Energy has filed a writ at the Patan High Court after its lock-in request for 8,000,000 units was blocked. Investors allege the move is illegal, violates property rights under Article 25 of the Constitution, and has effectively devalued promoter holdings worth Rs 640 million.

Babai Irrigation Project 76 Percent Complete After 37 Years

The Babai Irrigation Project, a national pride project in Bardia started in FY 1988/89, has reached 76 percent completion. Initially studied in the fiscal year 1966/67 with UNDP and IDA support, the project aims to irrigate 36,000 hectares across six local units, including Gulariya and Bansgadhi. Project Chief Gopal Sharma stated that the completion date has shifted to fiscal year 2028/29 due to delays, with the estimated cost rising to Rs 26.69 billion. Currently, the project is focusing on expanding the main and branch canals in Gulariya to boost local agricultural production.

Bheri Corridor 400 kV Transmission Line Project Initiated

The National Transmission Grid Company has started land acquisition for a 75-km, 400 kV transmission line connecting Maintada in Surkhet to Danipipal in Jajarkot. CEO Sagar Shrestha confirmed the project will cost Rs 8 billion for the line and Rs 6 billion for substations. The infrastructure is designed to evacuate 2,400 MW of electricity from major projects like Nalgad (417 MW) and Jagadulla (106 MW). The project, involving 352.04 hectares of land, aims for completion within four years once the Ministry of Finance provides final budgetary approval.

Cooperatives Department Issues Restrictive Directives Amid Reform Pressure

Following instructions from the Prime Minister’s Office, the Department of Cooperatives issued new directives that conflict with existing laws, causing confusion among institutions. The new rules mandate closing branch offices, maintaining a 90 percent credit-to-deposit ratio, and limiting individual loans to 10 percent of share capital (down from 15 percent of the capital fund). Additionally, cooperatives are now prohibited from making companies members and from purchasing land for resale. Information Officer Shashi Kumar Lamsal admitted the directives were issued exactly as received from the Ministry without reconciling them with existing cooperative acts or regulations.