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:

Nepal Premier League Season 2 Set to Begin with Floodlight Matches, Expected Revenue Rs 40 Crore:
The Nepal Premier League (NPL) Season 2 is ready to kick off from Mangsir 1, announced the Cricket Association of Nepal (CAN) at a press conference. For the first time, matches will be played under floodlights as part of a day-night schedule to make the tournament grander than the inaugural edition. CAN expects to raise over Rs 40 crore from sponsorships, team contributions, tickets, and digital platforms. Eight franchise teams are participating, all signing foreign players, some already arrived in Nepal. The opening match will feature defending champions Janakpur Bolts against Kathmandu Gorkhaz at 4 PM, marking the official start of NPL 2.

NRB Governor Terms 150,000 Blacklisted Individuals “Unreasonable,” Calls for Policy Reforms:
Nepal Rastra Bank Governor Dr. Bishwonath Poudel has questioned why over 150,000 people are blacklisted in a country with only about one million entrepreneurs, calling it an “unreasonable” trend driven partly by criminalising cheque bounce. Speaking at CBFIN’s sixth AGM in Kathmandu, he said the central bank is studying whether excessive blacklisting has contributed to weak loan demand and rising liquidity in BFIs. He assured timely reforms in loan-loss provisioning and policy obstacles. CBFIN Chair Upendra Poudyal and other industry leaders urged recapitalisation options, greater SME and agriculture investment, improved financial inclusion, and policy changes to strengthen Nepal’s banking sector.

Finance Minister Khanal Calls for Market-Oriented Liberal Economy Amid Shifting Economic Structure:
Finance Minister Rameshore Khanal has emphasized the need to uphold a market-oriented liberal economy, warning that Nepal’s economic structure is gradually shifting due to political and policy instability. Speaking at an NRB seminar marking the 100th birth anniversary of former governor and finance minister Dr. Yadav Prasad Pant, Khanal said external and political pressures continue to affect the economy. He noted declining industrial contribution and rapid growth in services and production, but expressed confidence in achieving expected growth through improved loan disbursement. Former finance ministers Prakash Chandra Lohani, Yubraj Khatiwada and Rup Jyoti also stressed strengthening production, reducing political interference and promoting entrepreneurship.

NRB Governor Poudel Says Solutions Under Study for Blacklisted Entrepreneurs, Calls for Better Business Environment:
NRB Governor Dr. Bishwonath Poudel said efforts are underway to find solutions for issues faced by blacklisted entrepreneurs. Speaking at a CBFIN event on Friday, he noted that the environment for investment has weakened and that the Gen Z movement is not the sole cause. Stressing that excessive strictness cannot foster entrepreneurship, he said improving the condition of businesses is essential for strengthening banks and financial institutions. He hinted at revising the current loan-loss provisioning framework and aligning future strategies with international practices. Poudel added that even small retail tasks handled by NRB will soon be shifted to BFIs. He emphasized digitalization and expressed readiness to support a better business environment.

Nepal Telecom Billing System Tender Stalled Amid Delays and Investigation:
Nepal Telecom’s tender for a new billing system, initially involving Huawei and other international firms, has been suspended due to special circumstances. After technical evaluation cleared Huawei, the economic proposal opening scheduled for Aswin 29 was postponed. The Ministry of Communications and IT formed a seven-member committee on Kartik 13 to investigate the process. Meanwhile, the current system operated by AsiaInfo, under a contract extended until September 2027, faces recurring technical issues. Acting MD Sabina Maske emphasizes that at least 24 months are needed for migration to a new system, leaving only 22 months for completion. Supreme Court orders ensured no conflict of interest or data breach during the tender.

Government Issues Rs 3 Billion in New Savings Bonds With Attractive Interest Rates:
The Public Debt Management Office has issued two new savings bonds to raise government funds: the Citizen Savings Bond-2087 worth Rs 2.5 billion and the Foreign Employment Savings Bond-2087 worth Rs 500 million. Both five-year bonds are open for applications until December 11. Interest rates are set at 6.5% for citizen bonds and 7.5% for foreign employment bonds, with payments made every six months. Nepali and non-resident Nepalis can apply through the DOMS system and investor portal. Deputy Secretary Prakash Pudasaini said applications worth Rs 800 million have already been received, and bonds will be issued on a first-come-first-served basis. Bonds are tradable, easily liquidated, and accepted as loan collateral.

Makawanpur’s Fields Turn Yellow as Mustard Blooms, but Farmers Report Falling Production:
Mustard fields across Makawanpur—including Hetauda, Hatiya, Harnamadi, Padampokhari, Suping, Bakaiya, Bagmati, Manahari, and Makawanpurgadhi—are now in full bloom, painting the district in vibrant yellow. The clear blue sky, fragrant blossoms, and buzzing bees have created a lively and refreshing rural landscape. Villagers describe the scene as uplifting, with bees moving from flower to flower collecting nectar. However, farmers note concerns beneath the beauty. Excessive pesticide use has reduced bee activity, and mustard production has dropped compared to last year. Farmer Narayan Ghimire attributes the decline to shrinking arable land due to modernization and rapid land plotting.

Lumbini Province Industrial Capacity Drops to 50.6%, NRB Report Shows Mixed Economic Trends:
Industrial capacity utilisation in Lumbini Province fell sharply to 50.60% in 2024/25, down from 56.36% the previous year, according to Nepal Rastra Bank’s latest Provincial Economic Activities Study. Among 28 surveyed industries, synthetic fabric output grew by 170.77%, while aluminum product manufacturing plunged by 67.01%. Banks increased industrial lending by 6.93%, with agriculture, forestry, and beverage industries receiving the largest share. Employment in surveyed industries slightly declined to 4,988. Lumbini’s economic growth is estimated at 4.70%, contributing 14.23% to national GDP. Tourism indicators worsened sharply, while crop and livestock production improved despite reduced agricultural credit flow.

Encroachment Attempts Intensify on Cotton Development Committee Land in Bardiya:
Encroachers have again targeted three bighas of Cotton Development Committee land in Durgapur, Madhuwan Municipality-8, Bardiya, amid growing concerns over government inaction. In the past five months, two major attempts were made to seize the land after Madhuwan Municipality dismantled the protective wire fencing while constructing a road, even felling 27 sagun and sissoo trees. On October 31, more than 150 people linked to the Nepal Shuddha Landless Independent Party built temporary shelters to occupy the area. Executive Director Birendra Raj Parajuli blames poor municipal cooperation. The committee, established in 1980, owns 1,320 bighas across Bardiya, Banke and Dang, much of which remains vulnerable due to long-standing land disputes and squatters.

Life Insurance Premiums Rise Nearly 22% in Q1, Bagmati Leads Provincial Contribution:
In the first quarter of FY 2082/83, total life insurance premiums in Nepal increased by nearly 22%, with Bagmati Province accounting for the largest share. Bagmati’s contribution rose 2.96% from the same period last year to 46.07%, while contributions from the remaining six provinces declined slightly, ranging from 0.08% to 0.82%. Despite this, all provinces recorded double-digit growth in premium collections, with an average increase of 17.89%. Bagmati achieved a notable 30.32% rise, followed by Karnali with 18.56%. Growth was driven by a 28% surge in first-year premiums. By mid-Ashoj, life and micro-life insurers collected a total premium of Rs 50.37 billion, including Rs 10.66 billion in first-year premiums.

Six Development Banks Announce Dividends for FY 2081/82, Ranging from 10% to 15.79%:
For the fiscal year 2081/82, six Nepali development banks listed on NEPSE—Shine Resunga, Mahalaxmi, Miteri, Garima, Muktinath, and Kamana Service Development Bank—have announced dividends. Miteri Development Bank declared a 10% cash dividend, with its AGM set for Mangsir 6. Garima Development Bank offered 10.53% (6% bonus, 4.53% cash), completing its 19th AGM on Kartik 27. Muktinath Development Bank declared 18.2% (13.53% bonus, 4.67% cash), while Kamana Service Development Bank announced 15.7895% (10% bonus, 5.7895% cash). Shine Resunga and Mahalaxmi Development Banks declared 13% and 10.37% respectively, with portions in bonus and cash, but have yet to set book-close dates for AGMs and distribution.

As Nepal Nears LDC Graduation in 2026, Instability Raises Calls for Deferral:
Nepal is set to graduate from the UN’s Least Developed Country (LDC) category in November 2026, marking a major development milestone. But recent Gen Z–led protests, sparked by a social media ban and fueled by anger over corruption and unemployment, have exposed deep political and economic fragility. The unrest damaged infrastructure, disrupted businesses, and rattled investor confidence just as Nepal prepares to lose LDC benefits such as concessional financing and preferential trade terms. Experts warn that instability, weak institutions, and slowing growth could undermine a smooth transition. Some argue Nepal should, like Bangladesh, seek a formal deferral to stabilize governance and rebuild resilience before graduating.

Tourism Sector Dominates Bank Lending in Gandaki, but Overall Investment Continues to Decline:
In Gandaki Province, bank lending remains heavily concentrated in the tourism sector, with investment in hotels and tourism businesses surpassing one trillion rupees. However, annual investment has been declining. Service-sector lending from banks and financial institutions fell by 0.07% this year, reaching Rs 1 trillion 11 billion 55 crore, after a 0.24% drop the previous year. Service-sector loans account for 31.26% of total lending in the province. Of this, wholesale/retail trade received Rs 58.66 billion (52.58%), tourism Rs 23.89 billion (21.42%), finance–insurance–real estate Rs 20.63 billion (18.49%), transport-storage-communication Rs 4.29 billion (3.85%), and other services Rs 4.07 billion (3.65%). Lending to finance–insurance–real estate grew by 23%, while transport–storage–communication loans fell by 9.65%.

Cobang-Jomsom Road Section Stalled for Eight Years Due to Contractor Delays:
The Cobang-Jomsom section of the national pride project connecting north-south Nepal has remained incomplete for eight years due to contractor negligence. Of the 74 km Beni-Jomsom road, about 17 km in this section has been stalled, with three stretches still unfinished despite asphalt paving from Ghansa to upper Mustang. The road, part of the Kali Gandaki Corridor, was contracted in FY 2073/74 to Pappu-Gaudi-Parvati-Koshi & Nyaupani JV for Rs 70 crore to build an 11-meter-wide asphalt road. While initial work progressed quickly, delays soon halted construction. Authorities have initiated disciplinary measures against the company for prolonged inactivity.