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 5.32 Points to Close at 2655 on Tuesday

The Nepal Stock Exchange (NEPSE) index continued its upward trend for the third consecutive day, rising by 5.32 points to close at 2655 points on Tuesday. However, the transaction amount decreased to Rs 5.82 billion from the previous day’s Rs 7.3 billion. While 122 companies gained, 125 declined. The hotel and tourism sector led the gains with a 1.4 percent increase. Jhapa Energy, Sagar Distillery, and Shrinagar Agritech Company all saw their share prices rise by 10 percent.

SEBON Mandates Companies Adjust Bonus Share Dividend Tax

The Securities Board of Nepal (SEBON) has implemented the 10th amendment to the Securities Issue and Allotment Directive, 2012, introducing a key change regarding bonus share distribution. The new rule mandates that the dividend tax incurred while distributing bonus shares to registered shareholders must now be adjusted and paid by the concerned institution directly from the dividend amount. This amendment aims to resolve practical challenges encountered during the bonus distribution and dividend adjustment process.

NRB Updates CPI Base Year to 2023/24

The Nepal Rastra Bank (NRB) has significantly improved its inflation measurement system by revising the Consumer Price Index (CPI) methodology. The base year for the CPI has been updated from 2014/15 to 2023/24. This update reflects a structural shift in spending: the weight of the Food and Beverage group dropped from 43.91 percent to 35.49 percent, while the Non-Food and Services group’s weight increased to 64.51 percent. NRB also expanded the basket of goods from 496 to 525 and the geographical coverage to 77 districts and will introduce a provincial-level CPI.

Ministry of Finance Allocates Rs 4.96 Billion for Election

The Ministry of Finance allocated Rs 4.96 billion to the Election Commission (EC) for the upcoming House of Representatives election. EC Spokesperson Narayan Prasad Bhattarai confirmed the receipt, noting the EC had initially requested Rs 7 billion. Bhattarai also updated voter statistics, stating the total number of voters has reached 19,005,324, with 837,094 new additions. The EC will finalize the electoral roll by December 30 after reviewing and correcting any repeated or ineligible voter names.

Rice Import Surges to Rs 10.18 Billion in First Four Months of FY

Rice imports surged to Rs 10.18 billion in the first four months of the current fiscal year, 2025/26. This figure represents an increase of Rs 3.22 billion compared to the same period last year. In total, 185,000 tons of rice were imported. Senior Statistics Officer Ram Krishna Regmi attributes the rise to the Indian government easing rice export restrictions and the lower cost of imported rice. The Ministry of Agriculture anticipates a slight decrease in domestic paddy production this year due to unseasonal rains and drought.

Garlic Import Value Drops Sharply from Rs 3.17 Billion

The import of garlic has significantly decreased compared to the previous year. According to the Department of Customs, during the first four months of the current fiscal year, at least 4,998.30 metric tons of garlic worth Rs 668.49 million were imported. This is a sharp decline from the previous year’s figure of 23,989 metric tons worth Rs 3.173 billion during the same period.

Nepal’s Cumin Import Hits Rs 1 Billion

Nepal’s annual cumin import averages around Rs 3 billion, with 99 percent sourced from India. In the first four months of the current fiscal year 2025/26, the country imported 2,536 tons of cumin valued at Rs 1.9 billion. Despite the high import volume, the National Potato, Vegetable, and Spice Crop Development Centre reports that commercial cumin farming in Nepal is nearly zero, highlighting a critical need for agricultural research by institutions like NARC.

Potato Production in Mustang Reaches Rs 628.2 Million

Potato production across the five local levels of Mustang has reached an estimated value of Rs 628.23 million in the current fiscal year 2025/26. According to the Agriculture Knowledge Centre, 9,665 metric tons of potatoes were produced across 478 hectares. This represents an increase in production value of Rs 118.4 million compared to the previous year, primarily due to an increase in the farm-gate price from Rs 60 to Rs 65 per kilogram this year.

NRB Implements Framework 2025 for Systemically Important Banks

The Nepal Rastra Bank (NRB) implemented the ‘Systemically Important Banks (SIBs) Framework 2025’ on Monday to select SIBs and enhance financial stability. The framework, drawing lessons from the 2008 financial crisis, requires SIBs to maintain additional Higher Loss Absorbency (HLA) capital, effective from January 2027. Selection criteria are weighted based on size (40 percent), interconnectedness (30 percent), substitutability (15 percent), and complexity (15 percent).

Minister Ghising: Power Deals Secure Nepal’s Energy Future

Minister of Energy, Water Resources, and Irrigation Kulman Ghising stated that recent agreements with India ensure a sustainable future for Nepal’s electricity trade. The Nepal Electricity Authority (NEA) booked capacity for 25 years on the new Inaruwa-Purnia and Lamki-Bareilly 400 kV cross-border transmission lines. Ghising noted that the decision to purchase 180 MW of electricity from PTC India for the dry season saved the NEA from a potential loss of Rs 1.2 billion.

Overcharging for Bottled Water Above MRP Now Punishable

The Department of Commerce, Supplies, and Consumer Protection (DCSCP) issued a statement on Monday, warning that hotels and restaurants will face action for charging customers above the Maximum Retail Price (MRP) for bottled water. The DCSCP noted that many establishments list prices on their menus that are double the MRP. Consumers in the Kathmandu Valley are advised that the official MRP for a one-liter bottle of water is Rs 16. The department will take action based on the Consumer Protection Act, 2018, even if the violation is reported via a simple verbal complaint.

Sudurpashchim Industrial Output Plummets Despite Credit Growth

The Nepal Rastra Bank reported that despite a 4.37 percent increase in industrial credit flow, reaching Rs 26.72 billion in Sudurpashchim Province by the first month of the current fiscal year 2025/26, industrial production has sharply declined. The bank’s report indicated a significant drop in production for key goods, including wheat flour (65.09 percent), sugar (60.22 percent), and bricks (42.25 percent). The average capacity utilization was only 34.47 percent. Kailali Chamber Secretary Prakash Chand blamed the decline on economic slowdown, lack of new investment, and security concerns stemming from political instability.

Bagmati Province Spends Only 7 Percent of Budget in Four Months

The Bagmati Provincial Government spent only about 7 percent of its total budget during the first four months of the current fiscal year 2025/26. Out of the total budget of Rs 67.477 billion, only Rs 4.903 billion was spent by mid-November. Capital expenditure performed poorly at 3.24 percent, equating to Rs 1.34 billion. Economic Affairs Minister Prabhat Tamang attributed the low spending to ongoing tender and contract processes, claiming spending will increase after December.

Government Freezes Rs 30 Million Sunpokhari Reconstruction Budget

The Federal Government has frozen the Rs 30 million budget allocated for the reconstruction of the 2 million liter Sunpokhari pond in Amargadhi Municipality-7, Dadeldhura. The pond, which irrigates over 2,500 ropani (1271832 square meters) of land, has been dilapidated for 15 years. Ward Chairman Khadak Bohora reported disappointment after the freeze by the current government. The Irrigation and Water Resources Management Project Office confirmed that the budget was frozen for nine of their 12 irrigation projects, collectively valued at about Rs 340 million.

DCSCP Fines 14 Firms for Unfair Trade

The Department of Commerce, Supplies, and Consumer Protection (DCSCP) penalized 14 industries and firms for engaging in unfair trade practices across Kathmandu and Bhaktapur. Halesi Mart Pvt. Ltd in Madhyapur Thimi was fined Rs 200,000, and Om Shivashakti Ceramic was fined Rs 50,000. The action was taken under the Consumer Protection Act, 2018, which allows inspection officers to impose fines ranging from Rs 200,000 to Rs 300,000 for such violations.

Dang District Sees 3.06 Percent Increase in Paddy Production

Dang district recorded a total paddy production of 186,000 tons this year, an increase of 3.06 percent compared to last year’s 178,000 tons. The production was achieved on 36,481 hectares of land with a productivity of 5.09 tons per hectare. According to the District Agriculture Knowledge Centre, the increase is attributed to continuous rainfall, improved seed quality, and the easier availability of chemical fertilizers. Farmers showed a preference for improved and local varieties of rice over hybrid types this year.

Jumla IRO Collects Rs 86.8 Million in Four Months

The Inland Revenue Office (IRO) in Jumla collected Rs 86.8 million during the first four months of the current fiscal year. While this falls short of the four-month target of Rs 130 million, Chief Tax Officer Prabhat Ghimire reported that income tax collection was the strongest at Rs 64.4 million. The office is currently focused on enhancing taxpayer education and controlling revenue leakage to achieve its annual target of Rs 640 million.

Myagdi River Control Project Begins in Beni at Rs 42.1 Million

Construction has begun on a flood and erosion control project along the Myagdi River near the Darbang Bus Park area in Beni Bazar. The project involves building a 165-meter-long composite wall, with a contract signed on April 23, 2025, for Rs 42.1 million. The construction has a deadline of July 4, 2026. This is one of six river control projects initiated this year in Myagdi, Parbat, and Mustang, with a total estimated cost of Rs 202.9 million.

SEBON Drafts New Directive to Regulate Margin Trading

The Securities Board of Nepal (SEBON) published the draft of the ‘Margin Trading Facility Directive, 2025’ to control disorder and risk in margin lending. The draft sets strict eligibility criteria for both companies and brokers. Eligible companies must have at least 5 million listed shares, high net worth, and a history of dividend distribution. Brokers providing the facility must have a minimum paid-up capital of Rs 200 million. The directive mandates that investors must cover a minimum of 50 percent of the stock purchase price, with brokers lending up to the remaining 50 percent.

Nepal SBI Bank Announces 9 Percent Dividend for Shareholders

Nepal SBI Bank announced a total dividend of 9 percent for its shareholders, pending approval from the Nepal Rastra Bank and its Annual General Meeting. The dividend comprises a 5 percent cash dividend (including tax) and a 4 percent bonus share. The decision was made at the bank’s Board of Directors meeting. The bank currently has a paid-up capital of Rs 10.89 billion.

UAE Eases Visa Process for Nepali Workers After Government Request

The UAE, a major labor destination, has eased the visa process for Nepali nationals, including worker and visit visas. The UAE had previously halted visa facilities, citing security risks following the Gen Z protest. According to the Nepal Foreign Employment Agencies Association and Immigration Department Director Tika Ram Dhakal, the flexibility was shown following a request from the Nepal government. This decision is expected to positively impact remittance, as the UAE is the largest destination for Nepali workers, with 80,901 receiving final labor approval in the first four months of the current fiscal year.

Gold Price Jumps by Rs 5,200 to Rs 247,000 Per Tola on Tuesday

The price of gold in the domestic market jumped by Rs 5,200 per tola on Tuesday, reaching Rs 247,000, according to the Nepal Gold and Silver Dealers’ Association. Yesterday’s price was Rs 242,700 per tola. Silver also increased by Rs 85 to trade at Rs 3,200 per tola. The increase is attributed to fluctuations in the international market, a steady rise in prices, and changing demand.