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 Rises for Fourth Consecutive Day, Turnover Reaches Rs 6.69 Billion

The Nepal Stock Exchange (NEPSE) index increased by 9.61 points on Wednesday, marking the fourth consecutive day of gain, pushing the index to 2665 points. The trading volume also saw a significant rise, reaching Rs 6.69 billion. At least 142 companies saw an increase in share price, with sectors like banking, hydropower, and microfinance registering gains. Four companies, including Sagar Distillery and Swastik Microfinance, saw a 10 percent price increase. This bullish trend is being attributed to policy facilitation that has reportedly boosted investor confidence.

Nepal’s Public Debt Reaches Rs 2.729 Trillion

Nepal’s public debt reached Rs 2.729 trillion in the first quadrimester of the fiscal year 2025/26, representing 44.69 percent of GDP. During this period, the government mobilized Rs 138.75 billion in new public debt. However, after paying back Rs 127.61 billion, the net debt increase was Rs 55.36 billion, including exchange rate impacts. Finance Minister Rameshore Khanal defended the borrowing, stating that the debt was not taken haphazardly and was necessary due to pressure on current expenditure.

MCC Project Launches 18 km Transmission Line in Nawalparasi (Bardaghat Susta Paschim)

Construction of the electricity transmission line under the Millennium Challenge Corporation (MCC) project was jointly launched on Wednesday in Sunwal, Nawalparasi (Bardaghat Susta Paschim). Finance Minister Rameshore Prasad Khanal and US Ambassador Dean R. Thompson inaugurated the 18 km line, which extends from Suryabasti to the Nepal-India border. The project involves building 53 towers. The transmission line is scheduled for completion within 21 months, with the substation due in 39 months. Both officials highlighted the project’s importance for enhancing Nepal’s green energy security, promoting economic growth, and strengthening its position in the South Asian power market.

Government Tightens Rules on Media Ad Payments

The government has tightened payment regulations for official advertisements to curb reported irregularities where agencies pay media houses cheaply but charge government bodies high rates. The Prime Minister’s Office has now mandated that advertising agencies must submit the media house’s original bill when claiming payment from any government office, including federal, provincial, and local levels. This new rule aims to enhance transparency and prevent financial misuse. The directive comes following numerous complaints and a recent letter from the Commission for the Investigation of Abuse of Authority (CIAA), which highlighted ongoing irregularities in the process.

Bagmati Government Projects Stall Due to Policy and Funding Issues

Many multi-year projects started by the Bagmati Provincial Government remain incomplete or non-operational, even into the third year of its second term. Projects under the Ministry of Agriculture and Livestock Development are especially affected. The cold storage project, with a total planned cost of Rs 1.173 billion, has already spent Rs 763.5 million through the fiscal year 2025/26. Additionally, the Hetauda Milk Powder Plant and the Provincial Agricultural Wholesale Market are physically complete but are unable to operate due to a lack of required operating policies, leading to questions over resource utilization.

Madhesh Government to Give Rs 2,000 Jobless Allowance

The Madhesh Provincial Government is preparing to provide a living unemployment allowance of Rs 2,000 per month to unemployed youth holding a bachelor’s degree. Chief Minister Saroj Kumar Yadav announced the decision on Wednesday. The government is also addressing agricultural damage caused by drought and heavy rain, which affected food crops after only 86.35 percent of paddy transplanting. Farmers who registered their losses will receive Rs 1,500 per katha (3645 square feet) in relief. Furthermore, the government is moving forward with plans to honor martyrs of the Madhesh movement with the prestigious “Madhesh Ratna” award.

Karnali’s Agriculture Sector Shrinks Despite High GDP

The agricultural sector, which contributes 31.50 percent to Karnali Province’s GDP, has seen a continuous decline in production and cultivation area, according to the Nepal Rastra Bank (NRB), Provincial Office Surkhet. In the fiscal year 2024/25, the total cultivated area for all agricultural crops fell by 6.08 percent compared to the previous year, with major food crops like paddy, maize, and wheat all seeing a reduction in area. Overall agricultural output also dropped by 5.01 percent. The NRB estimates that the province’s economic growth rate will be 4.74 percent for the last fiscal year.

Government Approves Policy to Boost Startups

The Ministry of Industry, Commerce, and Supplies has approved the ‘Business Promotion Service Operation and Management Procedure, 2025’ to establish ‘Business Incubation Centers’ and boost the startup ecosystem. These centers will operate in partnership with academic institutions and the private sector, offering infrastructure, mentoring, and consultation to entrepreneurs with innovative ideas. The policy outlines financial support from the Industrial Business Development Institute ranging from Rs 500,000 to Rs 1.5 million for selected partner organizations. The centers will provide support for a maximum of two years, aiming to help startups transition into established, sustainable businesses.

Chhurpi Export Boom Provides Relief to DDC

Koshi Province’s booming export of ‘Chhurpi’ (a traditional dried hard cheese from the Himalayan region) has provided significant relief to the government-owned Dairy Development Corporation (DDC). Private exporter Manaram Himalayan Handicraft has begun monthly purchases of 25,000 kg of Chhena (a fresh, unripened, and crumbly cheese) from the DDC Biratnagar project. This bulk purchase removes the necessity for DDC to convert unsold milk into expensive powder, which saves costs. The private company exports the product to the USA. Last June, the firm received the ‘CIP’ honor for exporting agricultural goods worth over Rs 5 billion. This aggressive market expansion has helped stabilize the rural economy and virtually ended the milk problem in Eastern Nepal.

11th Industry Day Celebrated in Biratnagar

Entrepreneurs in Biratnagar celebrated the 11th Industry Day with a special morning rally and an awards ceremony. The event, hosted by the Federation of Nepal Cottage and Small Industries, honored outstanding entrepreneurs for their contributions. Bhim Kumari Rai, operator of Kerabari Dalmot Bhujiya, was recognized for her consistent efforts in establishing local products in the market. Similarly, Omkar Thapa, operator of Ojaswi Agriculture Farm, was honored for his specialized role in integrating modern technology and youth participation into agricultural enterprises. Participants committed to increasing future cooperation to boost entrepreneurship and local production.

Free Visa and Direct Flights to Sri Lanka

The Nepal Chamber of Commerce proposed direct weekly flights between Lumbini and Sri Lanka and a free visa arrangement for Nepali tourists to the Sri Lankan Ambassador, Ruwanthi Delpitiya. The aim is to boost tourism and trade, which currently averages only USD 2.5 million annually. The Chamber noted that Nepal’s exports stand at a low USD 700,000 against USD 1.4 million in imports. Direct flights would significantly attract Buddhist pilgrims from Sri Lanka. Ambassador Delpitiya expressed her commitment to enhancing trade facilitation and invited the Chamber to attend the international trade fair in Sri Lanka next June.

Government Vehicles to Get Insurance Following Gen Z Protest

The government initiated comprehensive non-life insurance for its vehicles, a policy decision made on September 21 following widespread damage during the Gen Z protest on September 8 and 9. The Ministry of Finance successfully completed the insurance of 20 four-wheeled vehicles under its ownership on November 21 through Nepali insurance companies. Ministry officials stated that this measure will help manage resources and improve service delivery. By relying on insurance claims for damage repair or replacement due to arson or accidents, the government anticipates a significant reduction in direct expenditure from the state treasury.

UAE Mandates Police Report for Nepali Visas, Citing Security Concerns

The United Arab Emirates (UAE) has made police reports mandatory for all Nepali citizens seeking visit and labor visas, a strict measure implemented after the Gen Z protest in September. This is based on concerns that individuals involved in criminal activities might attempt to enter the UAE. The UAE has been the top destination for Nepali workers, accounting for 32 percent of all labor permits in the fiscal year 2024/25. Foreign employment agencies confirmed that the new requirement has already led to a decrease in the number of new labor permits being issued for the UAE compared to last year’s figures.

Simara Airport Opens Tender to Lease Land for 5 Years

The Simara Civil Aviation Office has invited bids to lease 28156.98 square meters of land within the airport premises for agricultural purposes. The land, located on the west side of the runway, will be leased for a five-year term, starting from December 16. The tender explicitly prohibits the cultivation of tall crops such as maize and sugarcane or any crops that could attract wildlife or birds, ensuring flight safety. Interested organizations and Nepali citizens are encouraged to submit their formal bids for the agricultural lease.

Roads Board Nepal Starts Road Tolls with QR System

The Roads Board Nepal has started collecting road tolls in-house via an electronic QR payment system, eliminating the previous contractor-based method to prevent fund non-payment and arbitrary charges. Collection resumed on the Bhairahawa–Bhumahi section and will soon expand to major routes, including Narayangadh–Muglin and Birgunj–Pathlaiya. The Federation of Nepalese National Transport Entrepreneurs, led by Bijay Bahadur Swar, agreed to pay the toll but demanded that the expense be adjusted into the vehicle fare structure. The Board argued that the collected fees will be used for road maintenance, ultimately benefiting transport operators.

Government Slashes SEZ Land Lease Rate by 75 Percent

The government has significantly reduced the Special Economic Zone (SEZ) land lease rate from Rs 20 to Rs 5 per square meter, following a Cabinet meeting on Monday. This 75 percent fee reduction has been warmly welcomed by industrialists, particularly those in the Simara SEZ. The move aims to increase the attractiveness of the SEZ, which already offers concessions like a 50 percent rent reduction for the first three years. Industry leaders anticipate that the reduced land rate will foster a more conducive environment for export-oriented businesses and encourage greater investment in the zone.

Medical Fees for Foreign Employment Test Raised

The Ministry of Labor, Employment, and Social Security issued a circular on Wednesday mandating a new medical examination fee of Rs 9,500 for foreign employment, effective from today. This mandatory fee covers 34 types of tests. This specific fee had previously been determined by a ministerial decision last year, but its implementation was delayed due to opposition from medical entrepreneurs. The new rate replaces the earlier fee structure, which ranged from Rs 3,500 to Rs 6,500. The circular was issued during a period when the post of labor minister was vacant.

Internal Revenue Office, Jumla, Struggles to Meet Rs 130 Million Target

The Internal Revenue Office, Jumla, with jurisdiction over Jumla, Mugu, and Kalikot districts, collected only Rs 86.8 million in the first quadrimester of the current fiscal year, falling short of the Rs 130 million target. Chief Tax Officer Prabhat Ghimire cited the Gen Z protest and taxpayers concealing income as key reasons for the low collection. The office collected the most from income tax (Rs 64.4 million). The annual target for the office is Rs 640 million. To improve collection, the office is planning more market monitoring and providing tax education at the local level.

5th Sunwal Festival Opens, Targeting Rs 100 Million in Trade

The 5th Sunwal Festival commenced on Wednesday in Sunwal, Nawalparasi (Bardaghat Susta Paschim), under the slogan ‘Agriculture, Industry, Trade, Art and Culture, the overall prosperity of Sunwal.’ Organized by the Sunwal Industry and Commerce Association, the 11-day festival will run until December 7. It features nearly 200 stalls showcasing local, national, and international products, a food festival, and cultural programs. Organizers anticipate 100,000 visitors and economic transactions totaling Rs 100 million. Notably, senior citizens over 68 who receive social security allowance are granted free entry.

6th Bandipur Festival Aims to Attract 800,000 Tourists for 2025

The 6th Bandipur Festival started today, running from November 26 to December 7, with the goal of attracting 800,000 tourists for Visit Year 2025. Organized by the Tanahun Industry and Commerce Bandipur Market Unit, the festival aims to extend tourist activity beyond the main market into all six rural municipality wards. Attractions include the town’s famous old homes, Bhaktapur-style architecture, local temples, and adventure sports like paragliding. The recent start of a cable car service has significantly improved access. The festival features exhibitions of agricultural products, handicrafts, and local culture.

Myagdi Paddy Output Rises by 3.1 Percent

Paddy production in Myagdi district saw a 3.1 percent increase this year compared to last year, thanks to favorable weather conditions and minimal impact from pests or unseasonal rain. According to the Agricultural Development Office, production rose from 13,663 metric tons last year to 14,087 metric tons this year, with an average yield increasing from 3.59 to 3.70 metric tons per hectare. The Gandaki Provincial Government is actively supporting agricultural promotion, allocating Rs 1.5 million this fiscal year for irrigation, infrastructure, and mechanization assistance to boost future crop yields.

Electrification Reaches 7,000 More Households in Baitadi

Electricity has successfully been extended to 7,000 households across 19 wards in five rural municipalities of Baitadi district. This achievement raises the total number of connected households to 27,091. The district has 49,428 households in total, leaving approximately 22,000 still without access. To meet the goal of achieving complete electrification within the next two years, the construction of new 33 kV substations in Bindraban and Silleghada is currently in its final stages. These efforts, coordinated with local levels, aim to rapidly expand the power grid to underserved areas.

Budhigandaki and Upper Arun Hydropower Investment Modality Finalized

The Ministry of Energy, Water Resources, and Irrigation has finalized the investment modality for the 1200 MW Budhigandaki and 1063 MW Upper Arun hydropower projects, with a total estimated cost of approximately Rs 600 billion. The strategy relies on 100 percent domestic investment (30 percent equity, 70 percent loan). Budhigandaki will use a Rs 30 billion energy bond and Rs 104 billion from commercial banks. Upper Arun will be financed by a bank consortium and public shares, following uncertainty over World Bank financing, utilizing domestic financial institutions and investment from Nepali citizens abroad.

Arun III Stakeholders Agree to Address Local Issues and Monitor Benefit Schemes

Stakeholders of the Arun III Hydroelectric Project met in Khandbari on Tuesday and agreed to collaboratively address outstanding project-related issues. The decision involves the Investment Board, the developer, local administrations, and the District Administration Office. The parties committed to preparing a list of programs currently being implemented under the local benefit-sharing scheme and establishing a coordination committee to monitor their effectiveness. They also agreed that the committee, in coordination with relevant local levels, will determine and recommend future works to be undertaken under the benefit-sharing plan to the Investment Board.

Construction Over Kaligandaki River Begins

Construction has started on a new motorable bridge over the Kaligandaki River, aiming to resolve perpetual travel issues on the Kaligandaki Corridor. The 100-meter-long, 11-meter-wide bridge will connect Nayapul in Parbat to Kalakhola in Baglung, bypassing major landslide zones at Eklesal and Kalakhola. The Gandaki Provincial Government awarded the Rs 170 million contract to Muktinath Amit Joint Construction Company last June. The project, which requires the contractor to finalize the design, has a completion deadline of three years. The bridge will provide much-needed travel ease for commuters heading to Gulmi, Palpa, and Butwal.

Dang Police Fine 80 Overloaded Vehicles, Collect Rs 160,000

Police in Dang district took action against 80 vehicles, primarily tippers, for carrying excessive loads of construction materials like stone, sand, and limestone. The vehicles were fined during checks conducted on November 23 and 24. Each of the 80 vehicles was penalized Rs 2,000, resulting in a total revenue collection of Rs 160,000. District Police Spokesperson Deputy Superintendent of Police Chakra Bahadur Shah confirmed the action. Traffic police continue to warn drivers about removing unauthorized extensions used to illegally increase the vehicle’s capacity for transporting overloaded materials.

Shree Investment Finance Proposes 6.40 Percent Cash Dividend

Shree Investment Finance has proposed a 6.40 percent cash dividend for its shareholders, following a decision by its Board of Directors on Tuesday. The dividend proposal is subject to final clearance from the Nepal Rastra Bank and subsequent approval at the company’s upcoming General Assembly. This represents a substantial increase compared to the 1.96 percent dividend distributed by the company in the previous fiscal year. The proposed hike signals a robust financial performance for the reporting period.

Nepal SBI Bank Proposes 9 Percent Dividend for Last FY

Nepal SBI Bank has announced a proposal to distribute a 9 percent dividend to its shareholders from the profits of the last fiscal year. The bank’s Board of Directors, during its 537th meeting on November 24, proposed a 4 percent bonus share and a 5 percent cash dividend, which includes the amount for tax purposes. This proposal will be presented for approval at the upcoming 32nd Annual General Meeting of the bank. Shareholders will receive the declared dividend after approval from the Nepal Rastra Bank and the General Assembly.

Gold Price Jumps Rs 900 Per Tola

The price of gold saw a significant jump of Rs 900 per tola on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The association fixed the gold price at Rs 248,800 per tola, rising from Rs 247,900 on Tuesday. The price of silver also increased on Wednesday, rising by Rs 20 per tola. Silver is now being traded at Rs 3,220 per tola, up from Rs 3,200 on the previous trading day.