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 Continues Downward Trend; Trading Hits Rs 3.27 Billion

The Nepali stock market extended its decline on Thursday, the last trading day of the week.  The NEPSE index fell by 18.40 points to close at 2,487.17. The Sensitive Index, tracking Class “A” companies, also dropped by 1.73 points to 435.29. Today, 311 companies traded 36,531 times, with a total of 7,643,635 shares changing hands, amounting to Rs 327,545,864. A total of 197 companies saw their share prices fall, 45 gained, and 9 remained unchanged.

Banks Accumulate Excess Loanable Funds

As the first quarter of the fiscal year nears its end, banks and financial institutions have accumulated nearly Rs 1.15 trillion in excess loanable funds. The amount of funds available for loans had increased at the start of the new fiscal year. With the expansive budget and monetary policy, credit flow was expected to increase, reducing the surplus, and initial signs of rising loan demand were visible.

Income Tax Share Declines in Nepal’s Revenue Mobilization

Nepal’s revenue mobilization shows a decline in income tax share, while indirect taxes have slightly increased. According to the Ministry of Finance, in FY 2024/25, the share of income tax in total revenue collection was 25.3%, down from 26.8% in 2023/24. The share of indirect taxes, which was 13.8% in 2023/24, rose to 14.9% in 2024/25. Last fiscal year, only 76.22% of the income tax target was collected, whereas indirect taxes reached 89.85%.

ADB Chairman and Finance Minister Khanal Meet

Asian Development Bank (ADB) Chairman Masato Kanda expressed concern over political changes in Nepal. During a meeting with Finance Minister Rameshore Khanal in the U.S. on Thursday, he inquired about political changes and governance. Finance Minister Khanal stated that the current government is committed to creating an investment-friendly environment for private sector development. He also praised ADB’s long-standing contribution to Nepal, particularly in infrastructure development.

Governor Poudel Highlights Economic Challenges from Political Changes

Governor of Nepal Rastra Bank, Prof. Dr. Bishwo Nath Poudel, stated that recent political developments have added challenges to maintaining financial stability and sustainable economic growth. At the SAARC Finance Governors’ meeting during the ongoing World Bank and IMF annual meeting in Washington DC, he noted that inflation and external sector indicators remain stable. He added that policy facilitation efforts are underway to revive and mobilize the economy amid the political challenges.

Government Issues New Social Security Allowance Procedure

The government has implemented the ‘Social Security Allowance Distribution Procedure, 2025’ to make the system more organized, effective, and transparent. The Ministry of Home Affairs implemented the procedure using powers granted under Section 30 of the Social Security Act, 2018. The procedure requires beneficiaries to use bank accounts to receive allowances, preventing double payments and irregularities.

Irrigation Contracts Terminated for Non-Performance

Contracts for irrigation projects, signed years ago but left incomplete, are now being terminated. The Babai Irrigation Project announced on Thursday the termination of a contract signed about six years ago with Aman Construction Company, Gulariya-5. The project had contracted the company in fiscal year 2020/21 for canal repair, command area protection, and building maintenance.

17 Construction Companies Blacklisted

The government has blacklisted 17 construction companies.
The Public Procurement Monitoring Office under the Prime Minister and Council of Ministers issued a notice on Thursday stating that these companies are blacklisted for one to two years. According to Section 63(1) of the Public Procurement Act, 2006, the companies were penalized for contract violations.

Nepali Hotel Industry Remains Optimistic

Around 100,000 people are directly employed in Nepal’s hotel industry. The sector spends Rs 2.061 billion annually on salaries and benefits for employees and investors, according to a study by the Central Bureau of Statistics. Despite previous disruptions due to load-shedding, blockades, earthquakes, and the COVID-19 pandemic, this year’s Gen Z movement and monsoon-related issues had minimal impact. Industry representatives discussed this with Nepal Rastra Bank officials.

Insurance Authority Drafts Revised Agricultural Insurance Guidelines

The Insurance Authority has prepared a draft amendment for the Agriculture, Livestock, and Medicinal Plant Insurance Directive, 2022, and a draft directive on damage assessors. On Wednesday, a discussion was held at the Authority’s central office with insurers on agricultural, livestock, and medicinal plant insurance. The program aimed to gather feedback on amending the 2022 directive and on the new directive for damage assessors, introduced for the first time.

Most Tihar Materials Imported from Abroad

Most items required for Tihar are not produced domestically but imported from various countries. Customs data highlights the heavy dependence on imports. Cashews used for Bhai Tika come from India, Qatar, Kuwait, and Vietnam via Saudi Arabia. In just the first two months of the current fiscal year 2025/26, cashew imports totaled Rs 178,030,000. Similarly, coconuts are imported from India, amounting to Rs 76,620,000 in two months, according to customs data.

Dried Dates Available Despite Four-Year Import Ban

Nepal has had a ban on dried dates imports for four years, yet the market is flooded with them. Currently, dried dates are available in the market at prices ranging from Rs 450 to Rs 800 per kilogram. Fresh chickpeas can cost up to Rs 1,900 per kilogram. Despite being a prohibited item, dried dates are openly sold in the market while regulatory bodies remain silent. Customs department data shows that banned dried dates are being imported through customs points.

Flower Production Rises Ahead of Tihar

Flower production has increased in Lumbini Province. Compared to last year, production of marigold and velvet flowers used during Tihar has risen, according to the Lumbini Province Agriculture Directorate in Butwal. Last year, Lumbini Province produced 308,500 kilograms of marigold flowers, while this year production reached 323,925 kilograms.

Sufficient Sugar for Tihar Consumers

Sufficient sugar is available for Nepali consumers during Tihar.
According to the Ministry of Industry, Commerce, and Supplies, normal monthly consumption ranges from 18,000 to 20,000 metric tons, rising to 25,000–30,000 metric tons during Dashain, Tihar, and Chhath. In past years, when the government could not import duty-free sugar through Salt Trading Corporation, traders created artificial shortages to raise prices, but this year, no sugar shortage is reported.

Outbound Nepali Spending Exceeds Foreign Tourist Earnings

Spending by Nepalis traveling abroad is more than four times higher than revenue earned from foreign tourists. Government data shows that during the first two months of fiscal year 2025/26, foreign tourists spent R 11.58 billion in Nepal, while Nepalis spent Rs 47.31 billion abroad.

New Terminal Completed at Nepalgunj Airport

The ultra-modern terminal building at Nepalgunj Airport has been completed. The airport provides the highest air service in western Nepal. Although Sharma & Company had contracted to complete the terminal by the end of Poush, the company finished construction three months ahead of schedule. Nalbikram Thapa, project chief, confirmed that the terminal will be handed over in a few days.

Bagmati Province Cuts Expenditure by R 3.47 Billion

Bagmati Province has decided to reduce expenditures by NPR 3.47 billion from the allocated budget in fiscal year 2025/26. Finance and Planning Minister Prabhat Tamang stated that the cuts are intended to adopt fiscal prudence, reduce unproductive spending, and maintain financial discipline.

Mansarovar-Kailash Pilgrimage Through Humla Ends For This Year

Humla is considered a short-distance and safe route for Mansarovar-Kailash pilgrimage. Travelers reach Simkot by plane and then travel overland via the Nepal-China border at Hilsa. This year, Indian pilgrims completed the pilgrimage through Hilsa. Being a high Himalayan district, increasing cold and snow on the road marked the end of this year’s pilgrimage.

Construction of Bridge on Kaligandaki Progresses Slowly

The bridge over the Kaligandaki River at Ramnadi Dham, connecting Gandaki and Lumbini provinces on Siddhartha Highway, is progressing slowly. Started as a three-year project, only 75% work was completed by contract expiry. Himal Sagarmatha Pvt Ltd, Chitwan, signed a Rs 270.71 million contract with the Pokhara Bridge Sector Office in June 2022. According to the contract, only the arch, foundation, and pillars were completed, with hangers currently being installed.

Global IME Bank Calls Annual General Meeting

Global IME Bank has announced its 19th annual general meeting on November 12 at Nepal Pragya Pratisthan, Kamaladi, Kathmandu. The meeting will approve the dividend to be distributed to shareholders from last fiscal year’s profits. Shareholders will receive an 8% cash dividend (including tax purposes) based on current paid-up capital.

Miteri Development Bank Declares Dividend

Miteri Development Bank has announced dividends for its shareholders. The company’s board of directors decided to distribute a 10% cash dividend from accumulated profits up to the previous fiscal year. The bank has proposed cash dividends worth Rs 121.7 million.
The proposed dividend will be distributed after approval from Nepal Rastra Bank and the general assembly.

Gold hits record high in Nepali market today

The price of gold in the Nepali market surged on Thursday, reaching Rs 250,900 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. This marks the highest price recorded so far.  The association reported that 10 grams of gold on Thursday were priced at Rs 215,105.  On Wednesday, the price of hallmark gold had been Rs 248,900 per tola. Alongside gold, silver prices also saw an increase