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 Gains 2.77% as Improved Political Outlook Boosts Investor Confidence:
The Nepal Stock Exchange (NEPSE) climbed 73.18 points, or 2.77 percent, last week as investors grew more confident following signs of political stability and the likelihood of general elections being held on time. In four trading days, the index rose from 2,641.43 points on Sunday to 2,714.61 points on Thursday, fluctuating within a range of 87.92 points. Finance led sectoral gains with a 7.48 percent rise, while trading was the only losing group. Market activity strengthened significantly, with total turnover nearly doubling to Rs 38.25 billion. Market capitalization increased by Rs 122 billion, delivering strong capital gains to investors.

Nearly 590,000 Nepalis Obtain Work Permits Abroad in Six Months:
In the past six months, 590,718 Nepalis have gone abroad for employment, according to the Department of Foreign Employment. Between Shrawan and Poush of the current fiscal year 2082/83, 141 undocumented workers were regularized. Among the total, 196,042 workers obtained renewed work permits, including 4,866 through government-to-government (G2G) programs to Israel, South Korea, and the UK. Meanwhile, 64,262 individuals went abroad via personal work permits, and 325,407 were deployed through manpower agencies. The data reflects continued demand for foreign employment and highlights the structured channels facilitating Nepalis’ overseas work opportunities, ensuring compliance with labor regulations.

Over 800,000 Citizens Enrolled in Citizen Investment Trust, Total Funds Near Rs 296 Billion:
The Citizen Investment Trust (CIT) has enrolled 804,500 citizens since its operations began in February 1992, with total fund balance reaching Rs 296 billion and investments of Rs 295 billion. Operating seven programs, CIT covers Employee Provident Savings (373,000 participants), Production and Pension Scheme (37,000), Citizen Pension Scheme (14,000), and insurance schemes for civil servants, teachers, Nepal Army, Police, and Armed Police. The Trust encourages public savings and economic development, offering collateral-based and special loans of up to 90 percent of deposits. Monthly contributions start at Rs 500, and awareness campaigns are ongoing at institutional and social media levels.

Government Plans 328 MW Bharbung Hydropower Project in Dolpa at Rs 103 Billion:
The government will develop the 328.10 MW Bharbung reservoir-based hydropower project in Dolpa, with an estimated cost of Rs 103.31 billion. The project, promoted by the Department of Electricity Development, will affect Chharka Tangsong wards 4 and 5 and Kaike ward 1. A 169-metre-high dam, 766.1-metre diversion tunnel, 16 km headrace tunnel, underground powerhouse, and tailrace tunnel are planned. Submersion will affect parts of Chharka Tangsong–5. Utilizing water from the Bharbung River and Tatu Khola, the project is expected to generate 933.2 GWh annually. Total environmental, land acquisition, and CSR costs are estimated at Rs 2.44 billion, with private land acquisition costing Rs 2.996 million.

Nepal-China Third Border Trade Coordination Meeting Concludes in Lhasa:
The third Nepal–China Border Trade and Cooperation Coordination meeting was held on January 20–21, 2026, in Lhasa, Tibet. Led by Nepal’s Secretary Dr. Ram Prasad Ghimire and Chinese Vice Chairman Chao Peng, the meeting reviewed previous agreements and discussed bilateral trade, customs facilitation, infrastructure, and investment. Key outcomes included simplifying border passes, expediting the Tokha–Chhahare tunnel, promoting fertilizer imports under zero-tariff policy, and enhancing customs efficiency via green channels. Both sides agreed on joint infrastructure projects in Kimathanka and Rasuwagadhi, establishing sister-city ties, advancing a high-tech agricultural park, reinstating the Kathmandu–Lhasa bus service, and strengthening cooperation in traditional medicine, with the fourth meeting scheduled in Nepal in 2027.

Nepal, Saudi Arabia to Sign First-Ever Labor Agreement on Monday:
Nepal and Saudi Arabia are set to sign their first labor agreement on Monday, with Labor Minister Rajendra Singh Bhandari leading a delegation to Saudi Arabia. The agreement, approved by the Cabinet in mid-September, will prioritize the rights, safety, and welfare of Nepali workers, covering wages, workplace conditions, and skilled and semi-skilled labor deployment. Saudi Arabia has become the top destination for Nepali workers over the past three months, with over 41,000 deployed between mid-October and mid-January. In total, 62,559 Nepali youth went abroad for employment in January, with significant numbers also moving to Qatar, UAE, Malaysia, and Kuwait.

Nepal’s Trade Deficit Hits Rs 797 Billion in First Half of FY, Petroleum Imports Drive Surge:
Nepal’s trade deficit widened by 10.15% to Rs 797 billion in the first six months of FY 2025/26, up from Rs 723.58 billion last year, due to rising imports outpacing exports. Total imports surged by Rs 117 billion to Rs 939 billion, led by petroleum products, crude soybean oil, iron, gold, and smartphones, while exports grew by only Rs 43 billion to Rs 142 billion, dominated by processed soybean oil, cardamom, carpets, sunflower oil, and fibre. India accounted for 56.7% of imports, creating a Rs 416.7 billion deficit alone, with Nepal recording trade deficits with nearly all of the 152 countries it traded with.

Nepal Lags in AI Adoption, Ranked 76th Globally: Microsoft Report:
Nepal’s adoption of artificial intelligence (AI) remains limited, ranking 76th among 147 countries, according to Microsoft’s “Global AI Adoption in 2025” report. While AI use is slowly increasing, the country lags behind global averages due to weak digital infrastructure, limited skills, and fragmented policy frameworks. About 13% of Nepal’s working-age population uses generative AI tools, higher than most South Asian neighbors except India. Reports highlight that early investment in digital infrastructure, skills, and clear regulations enables faster AI diffusion. Analysts emphasize that Nepal must convert growing interest into wider application through coordinated policies, robust infrastructure, and skill development.

Nepali AI Platform ‘Mirago’ Brings Virtual Trial Room Experience to Online Shoppers:
Nepal’s AI platform ‘Mirago’ aims to solve a common online shopping dilemma: “Will this outfit suit me?” Users can upload their photo along with a clothing image, and the AI automatically fits the garment on the user’s image, creating a virtual try-on experience. The platform is designed for students, corporate employees, content creators, influencers, and general users, making outfit selection for formal events, parties, or weddings easier. Available via web, App Store, and Play Store, ‘Mirago’ prioritizes user privacy while offering a Nepali-language interface. It promises a convenient, interactive, and locally developed solution for online fashion shopping.

Social Media Algorithms Reshape Political Discourse Ahead of Nepal’s Elections:
The September 2025 Gen-Z protests, sparked partly by the government’s shutdown of social media, revealed how inseparable digital platforms have become from everyday life in Nepal. Despite restrictions, users bypassed controls through VPNs, highlighting deep reliance on online spaces. Social media algorithms, designed to maximize screen time, track user behavior such as viewing duration, likes, shares, and interactions to curate content and drive virality. As Nepal enters an election phase, these algorithms are increasingly shaping political opinions by amplifying sensational and personality-driven narratives over ideology and policy debates. This has intensified polarization, reinforced echo chambers, and reduced critical scrutiny of candidates, raising concerns that electoral choices may be driven more by algorithmic influence than informed democratic judgment.

Air Dynasty Leads Nepal’s Helicopter Passenger Services in 2025:
In 2025, among Nepal’s 12 charter helicopter companies, Air Dynasty served the most passengers, flying 2,400 flights for 7,297 passengers with its 4 helicopters. Kailash followed with 2,296 flights carrying 6,325 passengers across 3 helicopters. Heli Everest served 6,242 passengers in 2,414 flights using 3 Airbus A350 B3 helicopters. Other operators included Altitude (5,958 passengers, 2 helicopters), Manang (5,566, 1), Fistel (4,696, 2), Mountain Helicopter (4,216, 2), Prabhu (4,108, 2), Simrik (2,800, 4), and Annapurna Helicopter (1,961, 1). Mustang Helicopter provided the fewest passenger flights, serving 672 passengers from 262 flights. Overall, 2025 saw 54,827 passengers, a 6% increase from 2024.

Nepal’s Six-Month Trade: Profits with 36 Countries, Losses with 116:
Over the past six months, Nepal recorded profits in trade with 36 countries and losses with 116 countries. Top profit-making countries were Denmark (Rs 41.87 million), Romania (Rs 59.15 million), Sweden (Rs 33.18 million), Nigeria (Rs 17.34 million), Iraq (Rs 17.13 million), Norway (Rs 16.89 million), American Samoa (Rs 16.54 million), Iceland (Rs 12.52 million), and Seychelles (Rs 11.16 million). On the other hand, Nepal incurred the largest trade deficits with India (Rs 416.71 billion), China (Rs 195.36 billion), Argentina (Rs 5.44 billion), UAE (Rs 3.09 billion), Indonesia (Rs 981.99 million), Thailand (Rs 910.72 million), Malaysia (Rs 594.14 million), Australia (Rs 515.39 million), Brazil (Rs 507.69 million), and Brunei (Rs 457.27 million).

House and Land Transactions Rise in Poush; Revenue Crosses NPR 5.17 Billion:
Despite a general slowdown in the real estate market, house and land transactions increased in Poush. Land Revenue Offices across Nepal provided services for 162,877 properties, up from 158,899 in the previous month, Mangsir. The increase also brought higher footfall at land offices. Revenue from property transactions reached over NPR 5.17 billion in Poush, compared to NPR 4.84 billion in Mangsir, marking a notable monthly rise. The data indicates a temporary boost in real estate activity, driven possibly by seasonal demand, improved processing efficiency, or year-end property settlements, even amid broader market sluggishness.

Nepal’s Rice Imports Surge to Over NPR 20 Billion Amid Declining Domestic Production:
Nepal, once a rice-exporting nation, has become increasingly import-dependent, with rice imports reaching NPR 20.39 billion in the first six months of the current fiscal year—NPR 1.28 billion higher than last year. Basmati rice accounted for NPR 4.27 billion, while raw and semi-processed rice imports totaled NPR 9.87 billion. Despite rising import costs, revenue collection fell to NPR 144.26 million. Historically, Nepal exported rice globally, including to South Korea, Malaysia, and the U.S., but post-1990 liberalization saw imports surge. With annual rice consumption at 480,000 tonnes, domestic production struggles to meet demand, pushing the country toward greater food reliance on imports.

Banks Tighten Collateral Lending as Non-Banking Assets Surge in Nepal:
Nepalese banks have become cautious in collateral-based lending due to a sharp rise in non-banking assets (NBAs) and declining collateral values. The central bank now mandates banks to attempt selling collateral at least three times before seizing assets, curbing banks’ previous tendency to acquire collateral aggressively. With falling property prices and rising loan defaults, banks now focus on timely repayment rather than profiting from collateral sales. Nepal’s NBAs have reached NPR 51.12 billion, led by commercial banks. Similarly, savings and credit cooperatives face stricter rules, with lending limited to 50–60% of collateral value, down from 80% previously.

Nepal Telecom Cancels Rs 5 Billion Billing System Bid, Huawei Excluded:
State-owned Nepal Telecom has cancelled the nearly Rs 5 billion tender for a new telecom billing system, sidelining China’s Huawei. Huawei and Whalecloud were initially shortlisted, but technical and legal concerns, including potential monopoly links, halted the process. Nepal Telecom plans to issue a fresh tender, allowing previous bidders to participate. The system, critical for managing subscriptions, tariffs, and payments, affects 15.92 million subscribers. The cancellation follows legal scrutiny over prior billing contracts and geopolitical tensions, with US and India reportedly influencing decisions. Officials cite bid clauses inconsistent with Nepal’s public procurement law as the official reason for cancellation.

Nepal’s Paddy Output Set to Fall for First Time in Four Years Amid Drought and Migration:
Nepal’s paddy production is projected to decline 4.2 percent to 5.75 million tonnes in FY 2025-26, marking the first drop in four years, the Ministry of Agriculture and Livestock Development reports. Prolonged drought in Madhesh, unseasonal October rainfall, and rural-to-urban migration are cited as key factors. The shortfall of 205,350 tonnes may increase imports and strain the economy, as agriculture employs 60 percent of the population. Average productivity fell to 4.14 tonnes per hectare, while losses from weather events alone are valued at Rs 2.66 billion. Lower paddy output could elevate food inflation, affecting low-income households.

Nepal Rastra Bank to Revise Priority Sector Loans, Loan Classification, and Credit Loss Management:
Nepal Rastra Bank (NRB) is finalizing revisions to loan classification, credit loss management, and priority sector lending. A committee led by the Bank and Financial Institution Regulation Department has proposed extending the period before priority or production-sector loans are classified as non-performing. The study considers practices in India and Bangladesh, aiming to differentiate loans by sector and nature, including agriculture, MSME, IT services, and tourism. Banks may get grace periods for certain loans, reducing immediate provisioning under Expected Credit Loss (ECL) guidelines. Implementation is expected in the current fiscal year’s third quarter, enhancing sector-focused credit facilitation and risk management.

Commercial Bank Lending Increases by NPR 1.05 Trillion in Poush:
In Poush, Nepal’s commercial banks’ loan disbursement rose sharply by NPR 1.05 trillion, increasing from NPR 50.52 trillion in Mangshir to NPR 51.57 trillion, according to the Nepal Bankers’ Association. The surge reflects higher demand for consumer, housing, vehicle, and share-backed loans, as well as seasonal “evergreening” practices. Deposits also grew by NPR 1.3 trillion, boosted by remittances. While Poush typically sees increased lending due to tax payments and end-of-year business activities, banks note this rise is largely seasonal. With a creditable fund of NPR 11.33 trillion still available, further lending expansion remains possible.

269 Shareholders Hold Over 0.5% Stake in 18 Commercial Banks:
In Nepal, 269 individuals and institutions hold more than 0.5% shares in 18 commercial banks. Notable distributions include Nabil Bank (5), Nepal Investment Mega Bank (14), Global IME Bank (18), Machhapuchhre Bank (18), Prime Bank (18), NMB Bank (14), Siddhartha Bank (34), Prabhu Bank (12), and Agricultural Development Bank (4). Most banks also feature institutional investors like the Employees Provident Fund and Citizen Investment Trust. Prominent business families, including Chaudhary, Khetan, Dugad, Agrawal, Kedia, and Mahto groups, maintain significant influence in private sector banks. This ownership pattern highlights the mix of institutional and family-driven investment shaping Nepal’s banking sector.

Gandaki Province Legalizes Ride-Sharing, Issues New Rules and Fees:
Gandaki Province has officially legalized ride-sharing services after revising the earlier rules to remove ambiguities. The new guidelines allow four-wheeled vehicles with five seats to operate up to 50 km, while two-wheelers have reduced service fees from NPR 5,000 to 2,500 annually, and four-wheelers from NPR 20,000 to 10,000. Companies must deposit 2% of each transaction into the provincial fund. Unauthorized operations incur fines: NPR 100,000 for unlicensed vehicles and smaller penalties for offline rides. Service providers, including private vehicle owners, must obtain permits and renew annually. A monitoring committee will oversee compliance and enforcement.

Nepal Increasingly Spends Foreign Aid Outside Budget System, Report Shows:
The Ministry of Finance’s Development Cooperation Report 2022/23 reveals that 22.5% of Nepal’s foreign development assistance was spent outside the national budget, highlighting a rising trend of off-budget and off-treasury expenditures. Nepal received $1.4 billion in aid during FY 2022/23, of which only $309.3 million was included in the budget, and just 40.3% of that was spent through the government treasury. Off-budget spending has increased by 1.7% compared to the previous fiscal year, continuing a four-year upward trend. Meanwhile, actual aid received has been declining, from $2 billion in FY 2019/20 to $1.4 billion in FY 2022/23, despite higher commitments.

Government Intensifies Market Oversight, Fines Firms for Consumer Rights Violations:
The Department of Commerce, Supply, and Consumer Protection has stepped up market monitoring in the Kathmandu Valley, targeting 51 businesses over three days. Inspections from Tuesday to Thursday led to fines and directives: ‘Khiling Marketing Pvt. Ltd.’ fined NPR 50,000, ‘New Shiv Store’ fined NPR 201,000, while firms like ‘Himalayan Brewery’ were instructed to report within three days. Common violations included missing registration, absence of maximum retail price labeling, relabeling, and tampering with product weight or quality. The department is also analyzing price chains to curb artificial inflation and black marketing, aiming for transparent, competitive markets and strict enforcement of the Consumer Protection Act.

Early Childhood Enrollment Rises Sharply in Kathmandu Community Schools:
Enrollment in Kathmandu Metropolitan City’s community schools has risen notably this year, with 1,115 children beginning literacy programs on Saraswati Puja, according to the KMC Education Department. This marks an increase of 144 students compared to last year’s 971 enrollees. Of the new students, 525 are girls and 590 are boys. KMC currently operates 87 community schools, most of which run Early Childhood Development (ECD) classes. Municipal officials credit the growth to improved child-friendly learning environments, better management of facilitators based on student numbers, and increased investment in school infrastructure and human resources. Formal admissions will begin in Baisakh.

Eastern Nepal Farmers Busy with Sugarcane Harvest Amidst Smooth Mill Payments:
Farmers across Morang, Sunsari, Nawalparasi, Kapilvastu, Kailali, Kanchanpur, and Madhesh are actively harvesting sugarcane ahead of the 21st Falgun elections. Payment for sugarcane is immediate, with mills crediting farmers’ bank accounts within a week of delivery. The government has set a support price of NPR 690 per quintal, boosting farmer enthusiasm. Fourteen mills across the country, including Everest, Mahakali, and Bagheswar, ensure smooth processing. Local farmers report improved livelihoods, reduced dependence on India, and easy market access. Approximately 13,000 farmers cultivated 9,600 hectares, producing an estimated 30 million quintals this year, with daily deliveries in full swing.

DoTM Extends Embossed Number Plate Project to 2028, Faces Rs 1.5 Billion Loss:
The Department of Transport Management (DoTM) has extended the contract for embossed vehicle number plates by three years, pushing the deadline to December 2028, after slow progress and losses from last year’s Gen Z protests. A fire during the protests destroyed over 850,000 plates and equipment, with around 680,000 plates already received by DoTM. The project, implemented by the American–Bangladeshi firm Decatur–Tiger IT, originally aimed to install 2.5 million plates within five years but has fitted fewer than 100,000 vehicles so far. Under contractual provisions, the department will bear part of the losses while the contractor continues installation under the revised timeline.

Dozens of Insurance Companies Face Penalties for Missing AGM Deadlines:
Dozens of insurance companies operating in Nepal are set to pay millions of rupees in fines after failing to hold their Annual General Meetings (AGMs) within the legally mandated timeframe. According to the Nepal Insurance Authority source to Nepal News, companies that missed the deadline will be penalized under the Insurance Act, 2079. By the end of Poush, only 10 life insurance, six non-life insurance, and two micro-insurance companies had completed AGMs for fiscal year 2081/82. Several listed insurers, government-owned insurance and reinsurance companies, and micro-insurers failed to comply. Regulators say delays not only invite penalties but also raise serious concerns about corporate governance and financial discipline.

Nepal Airlines Opens Talks With EPF and CIT to Address Mounting Aircraft Loan Liabilities:
Nepal Airlines Corporation (NAC) has begun high-level discussions with the Employees Provident Fund (EPF) and the Citizen Investment Trust (CIT) to resolve growing liabilities linked to aircraft purchase loans. The talks focus on clarifying discrepancies in debt records, managing long-term liabilities, and designing a sustainable repayment plan. NAC has repaid Rs 539.55 million to EPF & CIT so far, but outstanding debt continues to rise due to grounded aircraft, fuel price volatility, and operational inefficiencies. The airline is seeking relief measures such as interest adjustments and repayment restructuring, while EPF and CIT aim to protect public funds through a viable settlement.

Nepal Oil Corporation Prepares for 25% Surge in Fuel Demand During Elections:
With parliamentary elections approaching, Nepal Oil Corporation (NOC) is preparing for a potential 25% spike in petrol and diesel consumption over ten days, similar to festive-season surges. NOC Managing Director Chandika Prasad Bhatt said all depots will maintain sufficient stock, supported by 1,700–1,800 tanker trucks and expanded storage facilities in Amlekhgunj, Pokhara, Biratnagar, and Nepalgunj. The Motihari-Amlekhgunj pipeline ensures efficient fuel delivery, reducing costs by Rs 2 per liter, with future extensions expected to cut prices further. NOC aims to ensure uninterrupted fuel supply during elections despite possible border disruptions, leveraging pipelines, storage, and logistics planning to stabilize the market.

IPPAN Urges Political Parties to Prioritise Private Sector–Friendly Energy Policies in Election Manifestos:
The Independent Power Producers’ Association, Nepal (IPPAN) has urged major political parties to prioritise energy-sector issues in their election manifestos to accelerate Nepal’s energy development. In letters sent to leading parties, IPPAN called for private sector–friendly policies, amendments to the Electricity Act, and the adoption of a multi-buyer, multi-seller electricity market. Emphasising energy as the backbone of national prosperity, IPPAN highlighted that the private sector has already generated over 3,300 MW and invested nearly Rs. 1,300 billion. With ambitious national targets to expand power generation, IPPAN stressed that clear policies and stronger private sector participation are essential to achieve Nepal’s clean, green, and energy-secure future.

Syangja Residents Welcome Government Move to Upgrade Butwal–Pokhara Section of Siddhartha Highway:
Residents of Syangja have expressed optimism after the government announced the start of preparatory work to improve the Butwal–Pokhara section of the Siddhartha Highway. A Cabinet meeting approved the acceptance of a US$ 2 million grant from the Asian Infrastructure Investment Bank for preliminary studies, aimed at making the highway upgrade more effective. Local business leaders and elected representatives say the decision has revived long-held hopes of safer and better roads. The Siddhartha Highway, a vital link between Lumbini and Gandaki provinces, suffers from frequent landslides, accidents, and weather-related disruptions. Once upgraded, the project is expected to reduce travel time, lower transport costs, improve road safety, and boost tourism and economic activity in the region.

Exports via Birgunj Customs Soar 52% in First Half of FY:
Nepal’s exports through Birgunj Customs surged 52% in the first six months of the current fiscal year, reaching Rs 48.1 billion, up from Rs 31.67 billion in the same period last year. Processed soybean oil led exports at Rs 25.42 billion, followed by processed sunflower oil, fruit juices, palm oil products, and clothing items. Officials attribute the rise to growing international demand for Nepali processed goods and improved customs management. The trend reflects a shift toward value-added exports over raw commodities. Authorities say continued investment in quality, packaging, and logistics could sustain export growth through this key trade hub.

Palpa Farmers Prepare Organic White Beans for European Export:
Farmers in Nisdī Rural Municipality, Palpa, are exporting organically grown white beans to Europe without using chemical fertilizers or pesticides. Through the Galdha Social Entrepreneur Women Cooperative, around 40,000 kg of beans are planned for shipment to the Netherlands this year, double last year’s 20,000 kg. Partnered with Akista Nepal and certified by Heifer Nepal, the initiative ensures fair prices for farmers, who now earn NPR 175 per kg instead of the previous NPR 130. The cooperative employs local women for grading and packaging, promotes sustainable farming, and provides reliable market access, benefiting both the environment and the community’s economy.

Government Allocates Over Rs 19 Billion for March 5 HoR Election:
The government has disbursed Rs 19.21 billion for the upcoming House of Representatives election on March 5, with the Ministry of Home Affairs receiving the largest share for security at Rs 10.39 billion. The Election Commission has been allocated Rs 6.73 billion, and the Ministry of Defence Rs 1.99 billion. Finance Minister Rameshore Khanal emphasized that internal funds, not donor money, are being used. The election is expected to mobilize around Rs 180 billion in Nepal’s economy, boosting aggregate demand. Candidates’ spending ceilings range from Rs 2.7 million in accessible areas to Rs 3.3 million in remote districts, with mandatory bank account reporting for all expenses.

Rudraksha Exports Begin via Kimathanka Border, Cutting Costs and Transit Time to China:
For the first time, Rudraksha from Bhojpur and Sankhuwasabha has been exported to China through the northern Kimathanka border. Makalu Agro & Trade shipped 4,500 kg, offering a faster and more cost-effective route than Kathmandu or Indian routes. Transport costs via Kimathanka are about NPR 300/kg, compared to NPR 700/kg through Kathmandu and NPR 150/kg via India, with significantly reduced transit time. The route also boosts local employment opportunities. Annual exports to China and India are roughly 150,000 kg and 450,000 kg respectively, with high demand for 5-faced Rudraksha in Tibet and Beijing. Required permits and revenue payments apply.

Tatopani (Nyalam-Khasa) Border Reopening Delayed as Wildfire Disrupts Chinese Customs System:
Tatopani (Nyalam-Khasa) border between Nepal and China remains partially closed following a wildfire in the bordering forests, which damaged electrical transmitters and disrupted China’s customs system. Although the fire is now under control, regular cross-border trade cannot resume, with only a few containers moving daily. Around 400 containers, carrying goods for import and export, are stranded along the border roads, causing financial losses and logistical challenges for traders. The 26 km Tatopani–Bahrabise road is prone to dust in summer and mud in monsoon, further complicating container movement. Full border operations depend on China restoring its customs system.

Government Directs Closure of Extra Cooperative Branches, Tightens Lending Rules:
The government has instructed all cooperative institutions with multiple branches to close extra offices to strengthen oversight. The Cooperative Department directed national and central federations to implement recommendations from the High-Level Economic Reform Commission. Key directives include restricting membership to natural persons only, limiting any individual’s total loan exposure to 10% of the cooperative’s share capital, and prohibiting land purchases for commercial purposes. Cooperatives can provide loans for housing construction only up to 1,000 sq. meters and must not allocate more than 25% of total loans to a single sector. Maximum loan-to-deposit ratio is capped at 90%.

Annapurna Base Camp in Myagdi Set for Electricity and Communication Expansion:
Annapurna Base Camp in Myagdi’s Annapurna Rural Municipality-4, a growing tourist destination, is set to receive electricity and communication upgrades. A technical team from Nepal Telecom, the Nepal Electricity Authority, and local representatives recently surveyed the 4,050-meter-high site. Local authorities, including Chair Bharat Kumar Pun and tourism advocates, have petitioned the government for the expansion to address challenges faced by thousands of annual visitors. Currently, areas beyond Humkhola lack network coverage, complicating tourist safety and promotion. Once implemented, the project will provide electricity and 4G connectivity, enhancing facilities, safety, and the overall experience for trekkers at this historic Himalayan base camp.

Nepal and India Sign MoU to Exchange Pre-Arrival Export Data for Trade Facilitation:
Nepal and India have signed a memorandum of understanding (MoU) to exchange pre-arrival information on exported goods, aiming to strengthen customs control and facilitate trade. Signed in New Delhi by Nepal’s Customs DG Shyam Prasad Bhandari and India’s CBIC Chairperson Vivek Chaturvedi, the agreement allows electronic sharing of export data for risk analysis, faster customs clearance, and secure cross-border trade. Initially applied to select categories of goods, the MoU may later extend to all items. Both sides will designate contact officers to support implementation, and any disputes will be resolved through mutual consultation. The agreement follows international best practices in trade facilitation.

Dhumba Lake in Mustang Draws Tourists Despite Milder Winter:
Dhumba Lake in Samle, Mustang, is attracting tourists even during winter as it remains unfrozen this year, unlike last year when extreme cold made access difficult. Located five km west of Jomsom at 2,830 metres, the lake sees over 150 visitors daily, including domestic and foreign tourists. Managed by the Kuchup Terenga Committee under the Annapurna Conservation Area Project, the lake holds religious significance for Buddhists, with rituals such as fish release and water offerings. Conservation efforts by local authorities, ACAP, and residents ensure its upkeep. The lake’s combination of scenic beauty, religious importance, and accessibility continues to boost tourism in the region.

All-Party Consensus Reached to Construct 50 MW Marsyangdi Besi Hydropower Project:
Political parties in Lamjung have agreed to proceed with the 50-megawatt Marsyangdi Besi Hydropower Project after its location and design were revised to address local concerns. Originally planned in Besishahar-6, the dam will now be built in Bagaincha, Marsyangdi-9, with a powerhouse in Bhotephant, Besishahar-10, allowing the river to flow through the market area. The run-of-the-river project, costing around Rs. 10 billion, will provide royalties to local communities and support infrastructure development under corporate social responsibility programs. While most parties and local officials support the construction, some campaigners continue to oppose it to preserve tourism and the natural beauty of Besishahar.

Nepal Becomes Asia’s First Country to Earn Climate Finance by Reducing Forest Carbon Emissions:
Nepal has become the first Asian country to secure climate finance by reducing carbon emissions through forest conservation. The government signed an agreement with the “Lowering Emissions by Accelerating Finance” coalition, enabling Nepal to receive up to $55 million. Funds will support forest preservation, biodiversity protection, quality improvement, and local community development. The initiative is part of a global public-private partnership involving over 30 multinational companies and governments of Norway, the UK, the US, and South Korea. Under the REDD+ framework, Nepal will provide internationally verified forest carbon credits, leveraging its forest coverage of over 46 percent and engaging 59 indigenous communities.

TVS Apache Racing Experience Debuts in Nepal, Selects Riders for India Finals:
The first edition of the TVS Apache Racing Experience in Nepal concluded at Satungal, Kathmandu, celebrating 20 years of the Apache motorcycle series. Over 60 riders competed on a professional 10-corner track under coaching from TVS Racing Champions, with performances judged on fastest lap times. The championship featured three categories—160cc, 200cc, and 310cc—with the top three riders from each advancing to the Grand Finale in Chennai, India, scheduled for April 2026. Winners received Rs 25,000, riding gear, and qualification for India. The event aimed to provide structured track racing exposure and identify emerging Nepali motorsport talent.

Merger Backfires: Nerude-Mirmire Microfinance Faces Leadership Crisis and Rising Bad Loans:
The merger of Nerude and Mirmire Microfinance, aimed at creating a strong institution, has triggered internal conflict, employee unrest, and regulatory interference, pushing the entity toward potential collapse. Disputes between senior management and the board, delayed CEO appointments, and unresolved employee grievances have disrupted operations, including loan collections. Staff unions announced indefinite strikes from January 20, paralyzing branch and central office functions. The leadership instability and poor human resource management have caused bad loans to exceed 15%, severely impacting profitability, with net gains shrinking to just NPR 5 crore. Regulatory micro-management has intensified institutional stress.

Election Commission Requests Nepal Rastra Bank to Facilitate Candidate Bank Accounts:
The Election Commission has requested Nepal Rastra Bank to facilitate the opening of bank accounts for candidates contesting the House of Representatives elections. Under the Election Commission Act, 2073 and the Election Code of Conduct, candidates must conduct all election-related expenses through a dedicated bank account managed by a responsible official. Political parties must also use separate accounts for election spending, including contributions over Rs 25,000. The measure applies to both first-past-the-post and proportional representation candidates. The Commission aims to ensure clean, transparent, and accountable elections, asking banks and financial institutions to maintain accounts until the elections are officially closed by the Commission.

Marsyangdi Rural Municipality Hosts Agricultural Fair to Promote Biodiversity and Farming:
Marsyangdi Rural Municipality in Lamjung organized an agricultural fair and exhibition in Khudi, Ward No. 3, on the occasion of National Agricultural Biodiversity Week 2082. Farmers, cooperatives, and agricultural groups showcased 59 categories of products, including grains, vegetables, fruits, millet, indigenous rice, honey, livestock, and poultry. Handicrafts from rural training centres were also exhibited. Eleven outstanding farmers were awarded cash prizes and certificates, while participating farmers received incentives. Chairperson Arjun Gurung emphasized that such events boost farmers’ morale, encourage agriculture as a professional career, and attract youth to the sector. A weekly open market further supports the sale of local produce.

Traditional Water-Powered Theki Craft Survives in Dhankuta Despite Modernization:
Dirgha Bahadur Paudel of Mahalaxmi-4, Dhankuta, continues the traditional craft of making theki—wooden vessels—using a water-powered lathe (chundaro) each winter. Despite electricity and modern tools, Paudel relies on water from a nearby stream to rotate the lathe, shaping timber from dar and jackfruit trees into vessels for drinking tongba, storing dairy, and other uses. Producing around 100 theki annually, he earns roughly Rs. 600,000 in three months, with water-powered theki costing up to Rs. 100 less per kuruwa than electrically made ones. Shortages of timber and chundaro threaten this centuries-old craft, though some areas in Dhankuta still preserve the tradition.

Suryakunda Hydropower Launches Public IPO from Magh 18:
Suryakunda Hydropower Limited will open its second-phase IPO to the general public from Magh 18, offering 572,431 shares at Rs 100 each, totaling Rs 57.24 million. Investors can apply for 10–50,000 shares until February 4. The IPO represents 20% of the company’s paid-up capital of Rs 685.67 million and follows allotments for local residents and Nepalis abroad. CARE Ratings Nepal assigned a BB- issuer rating, indicating moderate financial risk. The company operates the 11 MW Upper Tadi Khola Hydropower Project in Nuwakot, with electricity supplied to the Nepal Electricity Authority since last Shrawan, and a project cost of Rs 2.36 billion.

Palpa Cement Extends IPO Deadline for Local Residents by Two Days:
Palpa Cement Industries Limited has extended the deadline for local residents in West Nawalparasi and Palpa to apply for its IPO until January 25, following a public holiday in Lumbini Province. The company has allocated 1.875 million shares worth Rs 187.5 million to local applicants at Rs 100 per share. Previously, 562,500 shares were allotted to Nepalis working abroad. After local allotment, 5.625 million shares will be offered to the general public in the second phase. The IPO represents 20% of the company’s Rs 5.75 billion approved capital. Infomerics Credit Rating Nepal assigned the company an IRN BB+ rating.

Kathmandu Valley Launches Campaign to Install CCTV in Public Vehicles:
A campaign to install CCTV and dashboard cameras in public vehicles across the Kathmandu Valley has been launched, officials said. Chief of Kathmandu Valley Police, AIG Ishwor Karki, inaugurated the initiative, aimed at improving passenger safety, reducing road accidents, preventing crimes, and addressing complaints of driver misconduct and theft. The cameras will provide surveillance inside vehicles and record external activities to identify responsible parties in accidents. Kathmandu Valley Traffic Police expect that incorporating technology in public transport will enhance security and accountability, making commuting safer for passengers while also supporting law enforcement in monitoring and controlling traffic-related incidents.

Karnali Provincial Offices in Jumla Spend Only 9.4% of Capital Budget in Five Months:
Government offices under the Karnali Provincial Government in Jumla have spent only 9.4 percent of their capital budget during the first five months of the current fiscal year (mid-July to mid-December). According to the Provincial Treasury Controller Office, only Rs 101.1 million of the allocated Rs 1.11 billion capital budget has been utilized. Recurrent expenditure stood slightly higher at 15.19 percent. The Infrastructure Development Office recorded the highest capital spending, with overall financial progress of 19.33 percent. Officials attribute the low spending to disruptions caused by Gen-Z protests in September, which damaged government structures and hindered budget implementation across 12 provincial offices.

Lower Mustang Records First Snowfall in Four Years, Bringing Relief to Farmers:
Lower Mustang received its first snowfall in four years on January 24, blanketing areas of Thasang, Gharapjhong, and Varagung Muktikshetra rural municipalities. The snowfall has caused a sharp drop in temperature, disrupting daily life as residents remain indoors due to extreme cold. However, vehicular movement on the Beni–Jomsom road remains unaffected. While tourism activities have slowed, local farmers have welcomed the snow. Agricultural officials say snowfall improves soil moisture, controls pests, and boosts yields of apples, barley, wheat, and buckwheat. Regular snowfall is seen as vital for sustainable farming, especially amid climate change–driven weather irregularities.

Mid-Hill Highway Blocked by Snowfall in Rukum East, Vehicles Stranded:
The Mid-Hill Highway in Rukum East has been obstructed due to continuous snowfall, halting traffic along the Lukum–Patihalna section. According to the District Police Office, vehicles, including buses traveling from Kathmandu, have been stranded. A police team led by Inspector Himraj BK from Kakhri Police Station has been deployed to clear the road, said DSP Umashankar Prasad Yadav, noting that snowfall is still ongoing. Chief District Officer Sita Pariyar said rescue efforts are underway in coordination with Bhume Rural Municipality, with preparations to use a backhoe to remove snow. While cold weather has disrupted daily life, farmers have welcomed the rain and snow, which have eased prolonged dryness affecting wheat crops.

US Dollar Hits Record High Against Nepali Rupee:
Nepal Rastra Bank (NRB) has set the foreign currency exchange rates for Saturday, with the US dollar reaching an all-time high. The USD is now priced at NPR 146.81 for buying and NPR 147.41 for selling. Major currencies such as the Euro (NPR 172.31/173.02), British Pound (NPR 198.58/199.39), and Swiss Franc (NPR 185.61/186.37) also saw high valuations. Asian currencies like the Japanese Yen, Chinese Yuan, and Saudi Riyal were updated, alongside regional currencies including the Indian Rupee at NPR 160/160.15 per 100. NRB reserves the right to revise rates as needed.