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 Drops 42 Points as Market Correction Continues

The Nepal Stock Exchange (NEPSE) fell for the second consecutive day on Tuesday, dropping 42.58 points to close at 2,726.51. This 1.53 percent decline follows a minor correction on Monday. The Sensitive Index also decreased by 1.56 percent to 464.46. Daily turnover stood at Rs 14.167 billion, down from Monday’s Rs 16.35 billion. Out of 13 sectors, only the manufacturing and processing sector gained 1.40 percent. Saptakoshi Development Bank investors earned the most at 8.56 percent, while Radhi Bidyut Company led in turnover with Rs 578.5 million.

Agricultural Loans Shrink by 2.2 Percent Amid Economic Slump

The Nepal Rastra Bank (NRB) reveals that agricultural credit decreased by 2.2 percent in the first five months of the current fiscal year. While the monetary policy targeted a 12 percent growth in private sector credit, actual expansion was only 1.9 percent, totaling Rs 102.24 billion. Total credit reached Rs 5.599 trillion by mid-December 2025. Agricultural loans dropped to Rs 408.71 billion from Rs 415.49 billion last year. Bankers attribute the decline to a lack of new projects and a high default rate in the sector, which is double the banking average.

Twelve Customs Offices Report Zero Exports in Six Months

Out of 29 operational customs offices in Nepal, 12 reported zero exports during the first half of fiscal year 2025/26. These include Tatopani, Suthouli, Janakpur, and Gautam Buddha Airport. Despite zero exports, Tatopani recorded imports worth Rs 22.32 billion. Meanwhile, Birgunj Customs has regained its dominance, handling 47 percent of total imports and 34 percent of total exports. The Mustang customs office, utilized due to flood damage on the Rasuwa and Tatopani routes, handled imports worth Rs 11.68 billion (1.24 percent of total) and exports worth Rs 203 million.

Petroleum Imports via Birgunj Reach Rs 90 Billion in Six Months

Petroleum imports through the Birgunj border reached a value of Rs 90.6 billion in the first half of the current fiscal year. This represents an increase of Rs 2.75 billion compared to the same period last year. Revenue collected from these imports totaled Rs 37.85 billion. According to the customs office, diesel accounted for Rs 45.38 billion of the value, yielding Rs 19.85 billion in revenue. Petrol imports were valued at Rs 20.98 billion, while LPG gas imports reached Rs 14.79 billion, contributing Rs 2.77 billion to the state treasury.

FDI Commitments Rise 52 Percent to Rs 39 Billion

Foreign Direct Investment (FDI) commitments in Nepal reached Rs 39.19 billion in the first six months of the fiscal year, a 52 percent increase from last year’s Rs 25.77 billion. The Department of Industry approved 475 projects, proposing 20,122 new jobs. Large-scale industries secured Rs 23.14 billion through seven projects. However, actual inflows remain low, with only Rs 7.50 billion entering as equity by mid-December 2025. Experts noted that FDI has averaged only 0.28 percent of GDP over 30 years, citing policy instability and market size as key hurdles.

Bagmati Province Guarantees Rs 3 Billion for 46 Projects

The Bagmati Province government has granted multi-year budget guarantees for 46 infrastructure projects across 10 districts. The Ministry of Economic Affairs and Planning approved a total estimated cost of Rs 3.233 billion for strategic roads and bridges. According to Information Officer Suraj Paudel, the allocation includes Rs 1.75 billion for the current fiscal year, with the remaining funds spread through the fiscal year 2028/29. Key projects include the Bhokari-Sarekhet suspension bridge in Makwanpur and the Indrawati River bridge in Sindhupalchok. All projects must initiate the bidding process within the current fiscal year.

Koshi Panel Directs Government to Improve Transport Offices

The Justice, Administration, and Legislation Committee of Koshi Province submitted a 10-point directive to the government on Monday. Following onsite monitoring, Chairperson Kamala Darnal handed the report to Minister Indramani Parajuli. The report highlights critical damage at the Itahari office, where “Gen-Z” protest arsons destroyed vital records, forcing staff to operate under tarps. It notes security risks in Dhankuta, Ilam, and Udayapur as cash revenue is transported to banks without security. The committee urged legal reforms for vehicle transfers by owners abroad and specialized licenses for disabled-friendly and electric vehicles.

Gandaki Province Cancels Registration of 35 Cooperatives

The Cooperative Registrar’s Office of Gandaki Province in Pokhara has canceled the registration of 35 inactive cooperatives. On January 24, the office announced the closure of nine specific entities across Syangja, Parbat, and Nawalpur for failing to conduct business for two consecutive years. Registrar Bheshraj Rijal of the office stated that despite a 35-day notice issued in July 29, 2024, these institutions failed to update their records. Syangja saw the highest number of closures with 12 cooperatives. The office clarified that any outstanding liabilities of these canceled entities will remain the personal responsibility of their board directors.

Rasuwa Customs Collects Rs 1.16 Billion in Six Months

On the 74th International Customs Day, Chief Customs Officer Tulsi Prasad Bhattarai reported that Rasuwa Customs collected Rs 1.16 billion in revenue during the first half of the fiscal year. Currently, 200 cargo containers are undergoing inspection. Restoration of the dry port area, damaged by Lhende River floods on July 8, 2025, has cleared space for 250 trucks. During the event, CG Motor Suppliers was honored for contributing Rs 3.21 billion in revenue through electric vehicle imports, while Phinjo Sonam Suppliers was recognized for exporting goods worth Rs 740 million.

Govt. Tax Exemption Delay Stalls Ring Road Expansion

The second phase of the Kathmandu Ring Road expansion remains on hold as the Finance Ministry delays a decision on tax exemptions for Chinese contractors. Sushil Babu Dhakal from the Ministry of Physical Infrastructure stated that the implementation agreement between Nepal and China is pending this policy move. Once approved, Chinese firms will be exempt from customs and local taxes on construction equipment. The 8.2 km project from Kalanki to Basundhara includes a bridge at Dhungedhara and disabled-friendly overhead bridges. Although the survey was completed by mid-May 2025, the project has seen no progress for over seven years since discussions began.

KMC to Beautify Khula Manch with Rs 27 Million

The Kathmandu Metropolitan City has announced a plan to plant Bermuda grass at the open field south of Sainik Manch to improve public accessibility. The 61,263 square meter area, currently used for sports and by the elderly, suffers from dust and mud. The project, costing Rs 27 million, includes leveling the ground with 3 inches of fertile soil and installing eight rainwater harvesting pits, each 6 meters deep. Senior Engineer Arjun Aryal stated the construction company has until December 2026 to complete the work, aiming to enhance urban beauty and provide a clean recreational space for citizens.

Artificial Shortage Leads to Silver Scarcity in Market

A severe shortage of silver has hit the Nepali market, with traders stopping sales despite rising demand. According to the Federation of Nepal Gold and Silver Dealers’ Association, claimed banks have stopped selling silver stocks. However, sources suggest an artificial shortage is being created by traders themselves. Unlike gold, which only commercial banks can import, traders are legally allowed to import silver. Meanwhile, banks currently hold 130 kg of gold in stock. Bankers’ Association President Santosh Koirala stated that gold sales are also slow, leading banks to halt further imports under their allocated quotas.

US Dollar Hits All-Time High of Rs 147.41

Nepal Rastra Bank fixed the selling rate for one US dollar at Rs 147.41 on Tuesday, marking a historic peak. The Nepali rupee has depreciated by 5.1 percent against the dollar since July 2025, compared to a 1.5 percent drop in the previous year. While the strong dollar increases the cost of imports and foreign debt servicing, it has boosted remittance inflows and Direct Foreign Investment (FDI) attractiveness. However, Nepal has yet to fully capitalize on this through exports, as much of the current export growth is driven by processed oil rather than high-value internal production.

Gold Prices Surge to Rs 309,300 Per Tola

Gold and silver prices continue their upward trend in the domestic market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold increased by Rs 300 on Tuesday, reaching a record Rs 309,300 per tola (11.66 grams). Similarly, silver prices rose by Rs 95, bringing the current trading rate to Rs 6,870 per tola. In the international market, gold is being traded at USD 5,072 per ounce on Tuesday. This steady rise reflects the ongoing volatility in global precious metal markets, directly impacting domestic retail rates in Nepal.