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 Surges 4.52% as Election Optimism Lifts Investor Confidence:
Nepal Stock Exchange (NEPSE) jumped 115.74 points (4.52%) last week, driven by rising investor confidence amid expectations that elections will be held on time. The index opened at 2,560.29 and closed at 2,676.03, with steady gains across all five trading days. All 13 sector indices advanced, led by manufacturing and processing (+7.24%) and banking (+5.24%). Life insurance recorded the highest point gain. Turnover rose sharply to Rs 32.50 billion, up 59.22% from the previous week. Market capitalization increased by Rs 195 billion to Rs 4.493 trillion. NRN Infrastructure saw the highest turnover but fell 21.21%, while Sagar Distillery and Jhapa Energy surged 61.01% each.

Excess Liquidity Persists in Nepal’s Banking System Amid Blacklisted Businesses and Political Uncertainty:
Nepal’s banking system continues to face excessive liquidity, as over 150,000 blacklisted businesses remain inactive following the recent Gen-Z protests. The slowdown in trade and commercial activity has increased idle funds, affecting banks, insurance companies, citizen investment funds, and deposit and credit protection funds. The Deposit and Credit Guarantee Fund is seeking to invest Rs 415 million but institutional deposits currently earn only up to 2.75% interest. With declining interest rates and political instability, investment opportunities remain limited. The central bank plans to withdraw Rs 3 billion for 42 days through regular liquidity absorption operations, with interest rates determined via competitive bidding.

Nepal’s Banks Use Loan Write-Offs to Mask Bad Debts, Costing State Billions:
Nepal’s commercial banks are strategically using loan write-offs to remove bad debts from their balance sheets, presenting artificially healthy financials while saving on taxes. In FY 2080/81 alone, 20 banks wrote off Rs 18.5 billion, including major lenders like NIMB, Nabil, and NIC Asia. This practice boosts reported profits via “provision write-backs” despite underlying non-performing loans. While regulatory rules require continued recovery efforts, banks often deprioritize collection post-write-off. The method reduces Capital Adequacy Ratio pressures, avoids dividend restrictions, and lowers tax liabilities, creating moral hazard risks. Experts warn the hidden debts threaten long-term financial stability and depositors’ security.

Nepal Rastra Bank Prepares First Quarterly Monetary Policy Review Amid Liquidity Challenges:
Nepal Rastra Bank is preparing the first quarterly monetary policy review for the current fiscal year, set to be published by December 1. Excess liquidity in the banking system, weakened investment sentiment, and the economic impact of the recent Gen-Z protests have strained banks, affecting loan repayments and interest income. The central bank is deliberating on interest rate adjustments and changes to the Cash Reserve Ratio (CRR), which influence liquidity and lending. Governor Dr. Bishwanath Paudel is reportedly considering simplified investment schemes for businesses, easing relief for blacklisted borrowers, and promoting access to capital for marginalized communities, with measures likely reflected in the upcoming policy review.

Life Insurance Policy Surrenders Drop 8.79% Amid Rising Unrenewed Policies in Nepal:
Life insurance policy surrender amounts in Nepal fell 8.79% in the current fiscal year, with Rs 3.4885 billion withdrawn through surrenders by Ashoj, compared to Rs 3.8246 billion in the same period last year, according to Nepal Beema Pradhikaran. The number of surrendered policies also declined by 18%, from 28,057 to 22,999. However, unrenewed or lapsed policies increased 4.89% in value, reaching Rs 36.7867 billion, and 1.86% in number, totaling 1.220 million policies. While lower surrender rates reflect regulatory and public awareness efforts, rising lapsed policies signal challenges for life insurers’ business sustainability amid past political and financial uncertainties.

Government Probe on Nepal Telecom Billing Contract with Huawei Reaches Anti-Corruption Commission:
A government investigation into the Nepal Telecom billing contract, prepared under previous government’s influence, has reached the CIAA. The report, led by ex-secretary Maniram Gelal, raised concerns about opaque tendering, legal non-compliance, and technical monopolies favoring Huawei. The committee warned that granting Huawei control over all three main telecom systems could compromise service quality, increase future costs, and raise data security risks. The tender process reportedly allowed outdated and lower-spec hardware to favor Huawei, while transparency and proper vendor evaluation were bypassed. The commission has launched a rapid inquiry to assess potential legal and procedural violations.

Smart Telecom Victims Urge Minister Kharel to Resolve Tower, Rent, and Unpaid Dues Issues:
Victims of Smart Telecom have appealed to Communication and IT Minister Jagadish Kharel to intervene in resolving long-pending problems related to tower management, unpaid house rents, and electricity bills. In a meeting on Friday, they said they have endured losses since the company ceased operations three years ago, leaving towers unmanaged and payments overdue. Minister Kharel assured that no one would face injustice and pledged to coordinate with the regulatory authority for solutions. According to coordinator Krishna Bahadur Thapa, many workers lost their jobs and investors in smart cards and SIM cards suffered heavy losses after Smart Telecom’s licence was automatically cancelled on April 6, 2023.

Nepal’s Hydropower Companies Post Nearly 93% Jump in Profits in First Quarter of FY 2082/83:
Nepal’s hydropower sector saw a sharp profit increase in the first quarter of FY 2082/83, with 92 companies listed on NEPSE earning Rs 5.065 billion, up 92.92% from Rs 2.625 billion in the same period last year. Only 13 companies reported losses, down from 17. Upper Tamakoshi led profits at Rs 167.46 million, a 164.99% rise. Other notable gainers include Sahas Urja (Rs 49.48 million, +23.66%), Mountain Energy (Rs 42.34 million, +38.67%), and Radhi Bidyut (Rs 27.85 million, +811.63%). On the loss side, Rasuwa Gadhi Hydro posted the highest deficit of Rs 65.33 million, followed by Menchhyam and Upper Lohare Khola Hydropower.

Egg Prices Raised to Ensure Fair Pay for Producers in Nepal:
The Nepal Layers Poultry Farmers’ Association has revised egg prices to ensure fair compensation for producers, announcing new minimum support prices effective immediately. According to Association President Binod Pokharel, a crate of extra-large eggs now costs Rs 560, large Rs 545, medium Rs 530, and small Rs 325 — an increase of Rs 40 per crate from previous rates. The adjustment reflects rising production costs and efforts to curb illegal egg imports from India. With egg consumption typically increasing in winter, the new prices are expected to help farmers recover expenses. Prices had surged to Rs 560 per crate last July before gradually falling.

Gold Prices Jump Rs 8,900 per Tola Amid Global Reserve Shifts and Indian Demand:
Gold prices in Nepal rose sharply by Rs 8,900 per tola last week, reaching Rs 250,600 from the previous week’s Rs 241,700, according to FENEGOSIDA. The week saw fluctuating movements—an initial rise of Rs 2,900 on Sunday, a drop of Rs 1,900 on Monday, followed by gains of Rs 5,200 on Tuesday and Rs 900 on Wednesday. Prices dipped Rs 400 on Thursday before climbing Rs 2,200 on Friday. FENEGOSIDA attributed the surge to countries diversifying away from the US dollar, reduced investment options, and strong demand from India. Silver prices also increased by Rs 245, reaching Rs 3,345 per tola.

Surging Chhurpi Exports Give Major Relief to Dairy Development Corporation:
The government-owned Dairy Development Corporation (DDC) has received much-needed relief as exports of dairy-based dog chew chhurpi from Koshi Province surge. Manram Himalayan Handicraft Pvt. Ltd., a leading exporter, is now purchasing 25,000 kg of chhena monthly from DDC’s Biratnagar Milk Supply Scheme, easing the corporation’s market shortage and lowering processing costs. Manram Himalayan, which began exporting just 4 kg to the US in 2007, now exports 100,000–125,000 kg of chhurpi monthly. The booming export industry has helped end “milk holidays” in eastern Nepal and improved farmers’ incomes. However, strict EU standards and foot-and-mouth disease concerns still block European market entry.

Simkot Municipality Begins Buying Traditional Crops Directly from Farmers:
Simkot Rural Municipality in Humla has started purchasing traditional local crops directly from farmers for the first time, easing their market access and boosting incomes. After this year’s harvest, farmers began selling beans, proso millet, foxtail millet, buckwheat, and naked barley directly to the municipality, which will supply the grains to the Food Management and Trading Company Limited under an existing agreement. Farmer Bachhu Rawat from Ward No. 5 earned Rs. 80,000 by selling four quintals of beans at Rs. 200 per kg. According to agriculture technician Netra Bahadur Shahi, the municipality has already bought 10 quintals of beans, with more crop purchases underway.

Nepal Oil Corporation Begins Pre-Trial of New Aviation Fuel Depot at Pokhara Airport:
Nepal Oil Corporation (NOC) has begun pre-trial operations at its new aviation fuel depot at Pokhara Regional International Airport, testing storage tanks before full-scale refueling begins. Built at a cost of Rs 750 million, the depot has a 3.6 million-liter capacity with three 1.2 million-liter tanks, far exceeding the old airport’s 64,000-liter storage. Constructed by Nepali contractors with Indian collaboration, the facility includes automated systems, fire safety infrastructure, and office and laboratory buildings. Aviation fuel supply is expected to meet growing domestic and international flight demand, replacing previous fuel transport from the old airport depot. Full operations are planned in about two weeks.

Nepal Rastra Bank Awards Contract to Chinese Firm for New Rs 1,000 Notes:
Nepal Rastra Bank has awarded a contract to China Banknote Printing and Minting Corporation to print and supply new Rs 1,000 banknotes. The company will design, print, and deliver 43 million new notes. The central bank had called for tenders on September 10, and the firm offering the lowest bid was selected. The total contract value is USD 16.985 million, equivalent to approximately Rs 242.6761 crore at the current exchange rate. This initiative marks the issuance of new high-denomination notes in Nepal, with the Chinese company responsible for ensuring timely production and supply under the terms of the central bank’s contract.

Nepal Loses Rs 560,000 Monthly Due to Idle Leased Land at Kolkata and Haldia Ports:
Nepal is incurring a monthly loss of Rs 560,000 from unutilized land leased at Kolkata and Haldia ports under the Transit Treaty with India. The 4,850-square-foot warehouse at Kolkata has remained idle, while the 8,985-square-foot Haldia plot is used informally for vehicle parking instead of storing coal or construction materials. Lease payments continue despite Kolkata’s contract expiration and Haldia’s INR 300,000 monthly rent. Nepal’s Consul General in Kolkata, Jhakka Prasad Acharya, stressed the need for commercial utilisation or an amended transit agreement. The issue is largely attributed to the Nepal Transit and Warehousing Company’s management lapses, highlighting the need for practical oversight and investment planning.

Government Terminates 14-Year-Old Kankai Bridge Contract with Pappu Mahadev Khimti JV:
The long-stalled contract for the 723-metre Kankai Bridge along the Postal Highway has been terminated after 14 years of minimal progress. The Postal Highway Planning Office, Itahari, cancelled its agreement with Pappu Mahadev Khimti Joint Venture, originally signed in 2011 under a design-and-build model with a completion deadline of 2015. Despite five extensions, construction reached only 56 percent. The Rs. 17.1 million performance bond will be forfeited, and the contractor faces blacklisting under the Public Procurement Act. Locals had long demanded completion as the unfinished bridge hampered mobility and development. Of the 19 spans, only eight are fully completed.

Sugarcane Farmers Announce Protest Over Subsidy and Support-Price Dispute:
As the sugarcane crushing season approaches, farmers across Nepal have escalated pressure on the government over subsidy and minimum support-price issues. The Sugarcane Producers’ Federation and district associations have demanded the restoration of the sugarcane subsidy to Rs. 70 per quintal and a minimum support price of Rs. 750 per quintal. Memorandums were submitted to the Ministry of Agriculture and Livestock Development, the Prime Minister’s Office, and the Ministry of Finance. Farmers plan a symbolic one-hour road blockade on November 30 in Hariwan, Sarlahi, and have warned of indefinite national highway blockades if demands remain unaddressed, raising concerns about potential disruption to this year’s sugarcane crushing season.

Shailung’s Mini Great Wall Becomes Tourist Magnet as Construction Progresses:
The Shailung Mini Great Wall in Dolakha’s Shailung Rural Municipality has quickly become a popular tourist attraction, even though it remains under construction. Stretching across the scenic Shailung mountain range, the site is drawing both domestic and international visitors for walking, meditation, research, and sightseeing. According to Chairman Rimal Babu Shrestha, tourist numbers have surged recently. The project is funded jointly by the federal government (70%) and the rural municipality (30%), with Rs. 49.4 million spent on the first 500 metres and plans to extend it to one kilometre. Improved access roads and growing local businesses are helping position Shailung as a major future tourism hub.

Eleven of 12 Bridges Completed on Pokhara–Jamune Section of Pokhara–Muglin Road:
Eleven of the 12 bridges along the 38-kilometre Pokhara–Jamune section of the Pokhara–Muglin road have been completed, according to the Road Project Office. Bridges now span the Myagdekhola, Kumlekhola, Thadekhola, Samdhikhola, Mulkhola, Phedikhola-1, Phedikhola-2, Rudikhola, Haledikhola, Kalikhola and Kotrekhola in Kaski. The section also includes 105 newly built culverts. Physical progress has reached 59.89 percent, while financial progress stands at 47.80 percent. Around 30 kilometres of the route have been upgraded to four lanes, with the remaining eight kilometres blacktopped as two lanes. Meanwhile, expansion work on the 43-kilometre Jamune–Muglin eastern stretch is in its final stage.

Sunsari-Morang Canal in Biratnagar Transforms from Irrigation Lifeline to Multipurpose Urban Corridor:
The 55-year-old Sunsari-Morang Irrigation Project canal in Biratnagar, originally built to irrigate 68,000 hectares in Sunsari and Morang, is increasingly serving urban needs. Of the 27-kilometre canal connecting Biratnagar and surrounding areas, nine kilometres have been blacktopped by the metropolitan city and four by the provincial government, converting it into a multipurpose road corridor. While still providing irrigation to 28,000 hectares in Morang and 40,000 hectares in Sunsari, the canal’s water flow is limited in winter. Project Chief Manohar Kumar Sah highlighted that although federal, provincial, and local governments use the canal for roads and utilities, individual encroachments remain prohibited.

Asia-Pacific Faces Rising Cyber Risks Amid Low Adoption of Cyber Insurance:
Despite growing digital transformation and rising cyber threats, only 17% of companies in the Asia-Pacific region have insured their digital assets, according to a new Aon report. Industry experts cite limited financial modelling, scarce coverage options, and weak regulatory frameworks as key challenges. Just 12.3% of firms use analytics to guide cyber insurance decisions. Regulatory gaps often leave companies purchasing coverage only after major incidents. Experts emphasize the need for tailored cyber insurance products, robust enforcement of data protection laws, and enhanced risk governance. Stronger regulations and mandatory incident reporting could promote cyber resilience and wider adoption of insurance in the region.