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 14.17 Points Despite Lower Rs 4.67 Billion Turnover

The Nepal Stock Exchange (NEPSE) rose 14.17 points on Thursday to close at 2,726.72, while daily turnover slipped to Rs 4.67 billion from Rs 5.18 billion the previous day. Share prices of 149 companies advanced, 115 declined, and 12 remained unchanged. Most sectoral indices ended higher, led by the trading sector, while only the investment and Others indices declined. Reliance Spinning Mills, Ankhukhola Jalvidhyut, Ridi Power, Solu Hydropower, and NRN Infrastructure led trading by turnover. Everest Color was the day’s top gainer with a 15 percent rise, while Kutheli Bukhari Small Hydropower posted the biggest loss, falling 15 percent.

PM Shah Commits to Resolving Organic Sector Challenges

Prime Minister Balendra (Balen) Shah committed to resolving structural and policy challenges hindering Nepali organic products during a meeting at Singha Durbar with representatives from the Organic Association Nepal. Discussions addressed the lack of an internationally recognized domestic certification body, heavy subsidies favoring chemical fertilizers, and high certification costs. Prime Minister Shah instructed his secretariat and the Ministry of Agriculture to draft legislation for a national organic certification institution and develop dedicated organic fertilizer subsidy guidelines to boost exports and strengthen local industries.

Trade Deficit Hits Rs 1.78 Trillion, Import Reliance Deepens

The country suffered a staggering Rs 1.78 trillion trade deficit across 134 nations in fiscal year 2025/26, according to new Department of Customs data. While total foreign trade surpassed Rs 2.4 trillion, a massive Rs 2.096 trillion import bill easily overwhelmed the country’s modest Rs 315 billion in exports, leaving Nepal with a trade surplus in just 28 nations. The overwhelming majority of this imbalance remains concentrated among a few key trading partners. India topped the list with an Rs 951 billion deficit, followed by China at Rs 423 billion and Argentina driven largely by edible oil imports, at Rs 116 billion. Meanwhile, Nepal’s rare trade surpluses were mostly limited to small European and island nations like Denmark (Rs 804.5 million surplus), Norway, and Fiji, primarily due to minimal or zero recorded imports from those countries.

Foreign Trade Reaches Record Rs 2.411 Trillion In Last FY

The country’s total foreign trade grew by 15.88 percent to reach a record high of Rs 2.411 billion during the fiscal year 2025/26, according to annual data released by the Department of Customs. Total imports rose 16.20 percent to Rs 2.096 trillion, while exports increased 13.81 percent to Rs 315.29 billion. Consequently, the overall trade deficit widened by 16.63 percent to Rs 1.781 trillion, maintaining an import-to-export ratio where Nepal imports Rs 6.65 worth of goods for every Rs 1 exported.

Govt. Mobilizes Rs 133 Billion in Net Public Debt

The Public Debt Management Office reported that the government mobilized a net public debt of Rs 133.85 billion during the fiscal year 2025/26. Total loans raised reached Rs 447.16 billion achieving 75.07 percent of its budget target against debt principal repayments of Rs 313.31 billion. Total outstanding public debt climbed to Rs 2.974 trillion, pushing the national debt-to-GDP ratio to 45.07 percent, driven largely by domestic borrowing of Rs 358.66 billion and external borrowing of Rs 88.5 billion.

Nepal Imports Rice and Paddy Worth Rs 39.895 Billion

The country imported 741,703 metric tons of paddy and rice worth Rs 39.895 billion during the fiscal year 2025/26, reflecting high dependency despite a slight decrease from the previous year, according to the Department of Customs. While raw paddy imports dropped to 477,909 metric tons valued at Rs 19.145 billion, finished rice imports rose to 263,794 metric tons costing Rs 20.74 billion. India maintained a near-total monopoly, supplying over 99 percent of total volume, while minor quantities originated from China, Vietnam, Thailand, Qatar, and Italy.

Electricity Exports Surge to Rs 29.32 Billion

The country achieved a net trade surplus of Rs 18.76 billion from electricity trade in the fiscal year 2025/26, driven by a 67.96 percent surge in export earnings to reach Rs 29.32 billion. Total power exports to India and Bangladesh rose by 62.89 percent to over 3.87 billion units at an average selling rate of Rs 7.56 per unit. Meanwhile, import expenditure dropped by 31.57 percent to Rs 10.55 billion, reflecting increased domestic hydropower production and expanded transmission networks.

Nepalgunj Customs Office Falls Short of Revenue Target

The Nepalgunj Customs Office collected Rs 20.115 billion in revenue during the fiscal year 2025/26, achieving 81.95 percent of its revised target of Rs 24.545 billion and missing its goal by roughly Rs 4.43 billion. Despite the department lowering the annual target by over Rs 2 billion compared to the previous year, declining petroleum imports, restrictions on Indian sugar exports, and sluggish regional trade weighed heavily on collections. Diesel remained the highest revenue-generating import item, billion key export items from western Nepal centered on resin, medicinal herbs, and catechu.

Koilabas Customs Exceeds Revenue Target By 17.41%

The Koilabas Customs Office collected Rs 20.4 million in revenue during the fiscal year 2025/26, exceeding its target of Rs 17.4 million by 17.41 percent. Although monthly collections fell short during most of the year, higher-than-expected surges occurred in December/January, achieving 246.95 percent of the monthly goal due to increased Indian tourist arrivals, alongside strong performances in May/June and June/July driven by vehicular traffic. Additional collections included Rs 2.6 million from case deposits and minor administrative fees.

Inland Revenue Office Janakpur Collects Rs 6 Billion in Revenue

The Internal Revenue Office, Janakpur, collected Rs 6.067 billion in revenue during the fiscal year 2025/26, achieving 88.49 percent of its target despite economic liquidity pressures. Collections included Rs 2.55 billion in excise duty, Rs 2.068 billion in income tax, and Rs 1.284 billion in value-added tax, alongside minor contributions from interest, rental, and health risk taxes. Driven by intensive arrears recovery campaigns, telephone reminders, and taxpayer outreach targeting its 173,968 registered taxpayers, the office successfully recovered over Rs 100 million in legacy arrears.

Dang Returns Over Rs 2 Billion in Unspent Capital Budget

Dang district returned Rs 2.082 billion in unspent development funds during the fiscal year 2025/26, leaving 25.54 percent of its allocated capital budget underutilized. Out of Rs 8.155 billion allocated by federal and provincial governments for infrastructure projects, only Rs 6.072 billion was spent. According to the District Treasury Controller Office, the district has consistently failed to spend between Rs 2 to 3 billion annually over the past six fiscal years, highlighting persistent systemic inefficiencies in capital budget execution.

Hydropower Projects RCOD Extension Process Initiated

The Nepal Electricity Authority initiated the process to extend the Required Commercial Operation Date for 218 hydropower projects following a new policy endorsed by the board of directors on July 16. Extensions are being processed for 150 projects in group A and 68 projects in group B based on physical progress and contractual obligations, while underperforming projects face default notices or termination. Energy Minister Biraj Bhakta Shrestha assured that the government aims to facilitate ongoing private sector developments.

MOAFE Approves 26 Environmental Impact Assessment Reports Last FY

The Ministry of Agriculture, Forestry and Environment approved 26 Environmental Impact Assessment reports during the fiscal year 2025/26, led primarily by hydropower projects such as the 341 MW Budhigandaki, 270 MW Bheri-1 Semi-Reservoir, and 90 MW Marsyangdi Semi-Reservoir. Furthermore, the ministry approved 32 scoping reports, six supplementary Environmental Impact Assessments, and revised environmental management plans for several projects and 400 kV transmission lines under the Millennium Challenge Account Nepal initiative, while imposing penalties on six projects for non-compliance.

Gandaki Allocates Rs 25 Million to Reinstate Secretaries’ Salaries

Following the federal government’s decision to resume salaries and allowances for personal secretaries, Gandaki Province is preparing to reinstate the facility for provincial assembly members, with over Rs 25 million allocated in the current fiscal year’s budget. Out of 60 total seats, 59 members will receive the facility once the provincial cabinet issues a formal circular. Under existing regulations, speakers, deputy speakers, and committee chairs are entitled to officer-level secretaries, while general members receive non-gazetted first-class level secretaries. Provincial officials noted that while the facility is being restored following federal gazette publication, previously withheld salaries from last year will not be provided.

Bagmati Completes Construction of 44 Road Bridges in Last FY

Bagmati Province completed the construction of 44 road bridges and spent 63.40 percent of its total allocated budget during the fiscal year 2025/26, according to the Ministry of Physical Infrastructure Development. Alongside bridge completions, the province upgraded 136.66 kilometers of gravel roads, built 231.31 kilometers of black-topped and paved roads, and constructed six suspension bridges, 17 government buildings, 102 community buildings, 940 residential homes, and 17 parks. Out of 41 stalled projects, seven were finished, 23 resumed with accelerated workflows, four faced financial penalties, and coordination is underway to restart the remaining 11 projects.

Nagdhunga Tunnel Scheduled for Inauguration on Monday

The Nagdhunga Tunnel is scheduled to be inaugurated on Monday, according to Subhraj Nyaupane, Deputy Director General and Spokesperson for the Department of Roads. The inauguration ceremony will feature departmental ministers, ministry secretaries, the president of JICA, and the Japanese ambassador to Nepal, though the prime minister will not be in attendance. Officials clarified that the tunnel will not open immediately for full commercial traffic, as full operational readiness will require additional time following the initial modest launch ceremony.

Jitpur Simara Sub-Metropolitan City Expands Internal Revenue Base

Jitpur Simara Sub-Metropolitan City in Bara has strengthened its financial self-sufficiency, collecting Rs 275.6 million in internal revenue for the fiscal year 2025/26, up from Rs 118.6 million in 2021/22. Aiming to collect Rs 490 million in the current fiscal year, the municipality introduced business-friendly tax relief policies, including a 25 percent property tax discount for industries employing at least 60 percent locals, a 25 percent land revenue reduction, and a 10 percent early-payment discount for taxpayers settling dues by October 17 this year. Having successfully crossed the mandatory Rs 250 million local revenue threshold stipulated by the Local Government Operation Act, 2017, the sub-metropolitan city is shifting focus toward broadening tax brackets rather than increasing tax rates.

Fee Waivers Boost Pokhara Flights

The Pokhara International Airport will see regular international flights as the government approved a 100 percent waiver on parking, landing, and navigation fees alongside a 50 percent discount on ground handling charges until mid-September 2028. Flydubai will launch direct Dubai services starting September 23, linking the tourism capital to global networks. Mayor Dhanraj Acharya and General Manager Jagannath Niraula highlighted that the initiative will ease travel to Europe, America, and Arab nations while boosting local economic activity. Previously restricted to domestic operations despite costing nearly Rs 22 billion, the airport aims to attract further international carriers.

KSCL Begins Fertilizer Distribution in Dhanusha

The Krishi Samagri Company Limited began distributing urea and DAP fertilizer in Dhanusha under a buffer quota from the Madhesh Provincial Government to ease shortages during the paddy planting season, using recommendations from local governments. Officials noted that DAP supply is improving, with additional consignments expected soon. During the fiscal year 2025/26, the Janakpurdham office distributed 18,745.1 metric tons of agricultural inputs, including 11,241.35 metric tons of urea and 6,963.3 metric tons of DAP, ensuring stocks remain managed during peak farming periods.

Department Fines Raj Shree Food Rs 5,000 During Market Monitoring

The Department of Commerce, Supplies and Consumer Protection fined Raj Shree Food Store in Nagarjun-2, Kharibot, Banasthali, Rs 5,000 during field inspections for failing to maintain purchase invoices as mandated by The Consumer Protection Act, 2018. Conducting inspections across eight business firms on Thursday in the presence of consumer rights activists, the department issued corrective directives to seven other firms as part of its regular market monitoring activities to enforce compliance.

Bird Flu Infections Come Under Control Nationwide

Authorities have brought bird flu infections under complete control, with no new cases reported nationwide since July 17, according to the Department of Livestock Services. The outbreak had previously affected 11 districts across 119 locations, leading to the destruction of 835,563 birds, 1,165,663 eggs, and 245,035 kilograms of feed to contain the spread. To mitigate farmer losses, the government distributed approximately Rs 507.1 million in compensation out of Rs 520 million allocated for relief, helping stabilize market demand and poultry consumption as farming operations return to normal.

Gold Traded at Rs 291,300; Silver at Rs 4,505 Today

Gold and silver prices recorded a slight increase in the market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 300 per tola (11.66 grams) today, settling at Rs 291,300. On Wednesday, gold was traded at Rs 291,000 per tola. Similarly, silver prices also registered a gain. The Federation reported that the price of silver increased by Rs 25 per tola today, trading at Rs 4,505. On Wednesday, silver was traded at Rs 4,480 per tola.