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:

Nepal Abolishes Reference Value System, Implements Transaction-Based Customs Valuation Nationwide:
Nepal has fully implemented a transaction value–based customs valuation system at all customs points, marking a major reform in customs administration. The move formally ends the long-criticized reference value book system, blamed for opacity, corruption, and higher trade costs. Rolled out nationwide after successful pilots in Biratnagar and Birgunj, the system aligns with WTO-GATT principles and relies on online valuation software, digital databases, and artificial intelligence. Importers’ self-declared values will be prioritized, with risk-based checks and post-clearance audits. The reform is expected to reduce revenue leakage, curb corruption, lower trade costs, and accelerate foreign trade.

NEPSE Gains 1.36% on Positive Election Outlook, Market Capitalisation Rises by Rs 59 Billion:
The Nepal Stock Exchange (NEPSE) posted a strong weekly gain of 35.05 points, or 1.36 percent, buoyed by positive political developments supporting the timely conduct of the general election scheduled for March 5. The benchmark index opened the week at 2,585.87 points and closed at 2,620.92 points on Thursday. Trading took place over four days, as Tuesday was a public holiday for Tamu Lhosar. During the week, the index touched a high of 2,643.64 points and a low of 2,586.41 points, reflecting a volatility of 57.23 points. Sector-wise, all groups advanced except the trading index, which declined by 0.67 percent. Manufacturing and processing led gains with a 3.09 percent rise, followed by development banks at 2.96 percent. Turnover surged 37.12 percent to Rs 20.15 billion, while market capitalisation increased by Rs 59 billion to Rs 4.40 trillion, reversing the previous week’s losses.

Credit Card Loans Post Nepal’s Highest NPL Ratio at 18.27 Percent:
Credit card lending has recorded the highest non-performing loan (NPL) ratio in Nepal’s banking sector, reaching 18.27 percent by mid-October 2082, according to Nepal Rastra Bank. Overdraft loans followed with a 10.46 percent NPL ratio, both exceeding the sectoral average of 5.26 percent. Bankers attribute the surge to high monthly interest rates of 2.5 percent, lack of collateral, and compounding interest that often surpasses principal. Outmigration of professionals has further strained recoveries. NRB data also show elevated NPLs in working capital and hire-purchase loans, while margin lending remains the least risky category for banks.

Insurance Claims from Gen Z Protests Exceed Rs 23 Billion, Partial Payments Made:
Damage caused during the Gen Z movement has generated over Rs 23.46 billion in insurance claims, according to the Nepal Insurance Authority (NIA) as of Poush 16. Fourteen non-life and four micro-insurance companies reported 3,316 claims, of which Rs 5.48 billion has already been paid. Siddhartha Premier Insurance leads in claim settlements, paying Rs 191.56 million of Rs 5.57 billion due across 409 claims. IGI Prudential Insurance has disbursed Rs 111.31 million of Rs 2.87 billion due for 220 claims, while Shikhar Insurance paid Rs 731.8 million of Rs 2.37 billion across 449 claims. Payments are ongoing.

Hilton Kathmandu Staff Relocated Abroad After Gen Z Protest Damage:
Following severe damage caused by arson during the Gen Z movement on September 09, 2025, most employees of the Hilton Hotel in Kathmandu have been relocated to foreign chain hotels. The Naxal-based hotel, which employed 235 workers, was forced to shut down after suffering complete damage by attacks. To prevent job losses, Hilton temporarily transferred staff to its Asia-Pacific properties, with plans for their return once reconstruction is completed. Around 150 employees have already been managed under the chain’s arrangements. Hilton Kathmandu operates under Jagadamba Hospitality, owned by the Shankar Group, chaired by Shankar Agrawal, with directors Sulav Agrawal and Sahil Agrawal along with Infinity Holdings Chairman Deepak Bhatta.

Bagmati Province Dominates Nepal’s Banking Deposits and Credit, NRB Report Shows:
Bagmati Province holds the largest share of deposits and loans in Nepal’s banking system, accounting for 65.8 percent of total deposits and 59.5 percent of total credit, according to Nepal Rastra Bank’s annual report for fiscal year 2081/82. Of the Rs 7.29 trillion in nationwide deposits, nearly Rs 4.8 trillion originated from Bagmati, while over Rs 3.32 trillion of the Rs 5.58 trillion in loans were disbursed there. The report notes a marginal decline in agricultural lending, while industrial and service sectors continued to dominate credit allocation, underscoring the high concentration of financial activity in Bagmati Province.

Life Insurance Policy Surrenders Decline in Nepal, but Non-Renewals Remain High:
Life insurance policy surrenders in Nepal fell by 17.65 percent during the first five months of the current fiscal year, according to the Nepal Insurance Authority. A total of 37,147 policies worth Rs 5.69 billion were surrendered, down from Rs 6.10 billion in the same period last year. Regulators attribute the improvement to tighter agent licensing, enhanced training, and increased insurance awareness campaigns. However, policy non-renewal continues to pose a challenge, with unpaid premiums totaling nearly Rs 37 billion and a slight rise in lapsed policies. Insurers have introduced renewal discount schemes, but limited policyholder awareness and weak agent communication continue to undermine their effectiveness.

Nepal Insurance Authority Clarifies Key Claims Principles Through Decisions:
The Nepal Insurance Authority (NIA) has recently issued landmark rulings clarifying key principles in insurance claims. Decisions include: 1) life insurance claims are payable to beneficiaries even if the insured is murdered, provided the beneficiary is not implicated; 2) employees fatally injured by machinery in the workplace are considered third-party claims, reinforcing coverage obligations; and 3) claims cannot be honored unless premiums are paid, with official receipts or policy documentation as proof. These rulings aim to protect insured parties, ensure accountability among insurers, and establish clear guidelines for beneficiaries, agents, and companies operating in Nepal’s growing insurance sector.

Tribhuvan International Airport Generates Nearly Rs 13 Billion, Dominates Most of Nepal’s Aviation Revenue:
Tribhuvan International Airport remains Nepal’s top revenue-generating aviation hub, earning Rs 12.90 billion in fiscal year 2081/82, according to the Civil Aviation Authority of Nepal. The airport also leads in passenger traffic, serving nearly 7.8 million travelers and handling over 112,000 flights in the first 11 months of 2025. Pokhara International and Gautam Buddha International airports ranked second and third in revenue, though domestic flights dominate their operations. In contrast, Lamidanda Airport recorded the lowest income at just Rs 728 in a year. Overall, CAAN generated Rs 14.69 billion nationwide.

Nepal Operates Only 34 of Its 55 Airports, Limited Night Operations Highlight Infrastructure Gaps:
Nepal currently has 55 airports—3 international and 52 domestic—according to the Civil Aviation Authority of Nepal. Of these, only 34 airports are operational, including all three international airports: Tribhuvan (Kathmandu), Gautam Buddha (Bhairahawa), and Pokhara. Two domestic hub airports—Biratnagar and Nepalgunj—along with 29 other domestic airports, are functional. The remaining 21 airports, including Baglung, Baitadi, Jiri, and Rolpa, remain non-operational. Only 10 airports, including the three international and seven domestic airports, support night operations, limiting flight flexibility. Additionally, a heliport exists in Bhaktapur’s Nalinchok, while new projects such as Nijgadh International Airport and Arghakhanchi Domestic Airport are under construction. The operational constraints and limited night services underscore the need for investment in airport infrastructure to improve connectivity, regional accessibility, and overall aviation safety in Nepal.

Patan High Court Cancels Membership of 18 FNCCI Commodity-Based Associations:
The Patan High Court has annulled the commodity-based membership of 18 organizations under the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), ruling that their inclusion violated the federation’s statute. The decision, delivered by a joint bench of Judges Chandrabahadur Saru and Gopal Prasad Bastola, followed a writ petition filed by former FNCCI Vice President Kishore Pradhan. The court found that the FNCCI Executive Committee’s decision on Falgun 26, 2081, to admit 19 commodity associations contradicted recommendations of the Membership Committee. Only Forum Health and Technical Science was allowed to retain its membership.

Construction of Narayanghat–Gaindakot ‘Iconic’ Cable-Stayed Bridge Enters Testing Phase:
Construction of the modern cable-stayed “iconic bridge” over the Narayani River linking Narayanghat and Gaindakot has entered a critical testing phase. Built by Tundi Construction Pvt Ltd, the Rs 1.68 billion project is using the O-Cell load-testing technology for the first time in Nepal to assess pile-bearing capacity. Designed under international IRC standards with a lifespan of at least 100 years, the 420-meter-long bridge will include advanced cable-stayed and suspension features. Engineers aim to complete foundation and piling works within the current fiscal year, with full-scale construction accelerating after testing concludes.

Vehicles Reach Dhorpatan via Myagdi for First Time as Shorter Road Link Opens:
Vehicles have begun operating for the first time on the newly opened road linking Myagdi’s Dhawalagiri Rural Municipality to the tourist hub of Dhorpatan Valley in Baglung. The 75-kilometre route from Beni via Muna, Mareni and Jaljala is more than 50 km shorter than the existing Baglung–Dhorpatan road. Local officials describe the road as a lifeline for western Myagdi and a potential alternative to the Baglung section of the Mid-Hill Highway once connected to eastern Rukum. The project is expected to boost tourism, connectivity and economic activity in the region.

Pokhara–Muglin Road Project Deadline Extended for Third Time:
The Pokhara–Muglin road expansion project under the Prithvi Highway has received a third deadline extension after failing to meet completion targets despite two previous extensions. Funded by the Asian Development Bank, the western section of the project has achieved only 75 percent physical progress over four years. The Department of Roads has now extended the deadline until Asar 15, 2083. Officials cite delays caused by relocation of utility infrastructure and tree clearance. The 38.88-km stretch from Jamune to Pokhara has largely completed asphalt layering, with remaining work focused on four- and six-lane upgrades, road markings, and safety barriers.

CIAA Probes Tax Exemptions in Pokhara Airport Project, Rattling Finance Ministry and Chinese Embassy:
Nepal’s anti-graft body, the CIAA, has launched an investigation into tax exemptions granted during the construction of Pokhara International Airport, expanding its probe beyond alleged cost escalation. The move follows findings by the Auditor General that tax waivers were granted despite the original USD 244 million contract with a Chinese contractor being tax-inclusive. Although the project was financed by a China Exim Bank loan—typically exempt from taxes—auditors argue that payments to the contractor should have been adjusted accordingly. The investigation has triggered diplomatic unease, with the former Chinese ambassador formally objecting to the inquiry before leaving Nepal.

US Ends Duty-Free Access for 77 Nepali Products After a Decade of Limited Use:
The United States has officially ended duty-free access for 77 Nepali products under the Nepal Trade Preference Program, which was introduced in 2015 to support post-earthquake recovery. Despite the decade-long concession, Nepal utilized the facility poorly, exporting only 29 of the eligible products, while 48 saw no exports at all. Trade data show fluctuating export performance, with modest gains in recent years failing to offset earlier declines. The lapse of the scheme comes amid a new US policy imposing an additional 10 percent tariff on Nepali goods. Analysts cite weak product selection, low production capacity, limited awareness, and procedural hurdles as key reasons for underutilization.

Nepal’s Life Insurance Market Shows Steady Growth, Renewals Dominate Premium Collections:
Nepal’s life insurance sector continues to expand, with total premium collections showing a steady upward trend. According to Nepal Insurance Authority data, total premiums grew from NPR 94.38 billion in FY 2076/77 to NPR 181.42 billion in FY 2081/82, despite the market consolidating from 19 to 14 companies through mergers and acquisitions. Renewal premiums dominate collections, accounting for roughly 78 percent of total premiums in the first five months of FY 2082/83. Leading companies, including Nepal Life, National Life, and Life Insurance Corporation (Nepal), maintain significant market shares, reflecting both rising public confidence and the sector’s growing maturity. New business premiums also show continuous inflows, signaling ongoing market penetration.

Foreign Tourist Arrivals in Upper Mustang Drop Amid Security Concerns:
Upper Mustang saw a decline in foreign tourist arrivals in 2025, with 3,872 visitors compared to 4,093 in 2024, mainly due to security concerns following the Gen-Z protests and a jail break in October. French tourists were the largest group, though numbers fell from 436 to 365. Peak seasons remain October and April, when travelers explore Lo Manthang, monasteries, caves, and traditional villages. ACAP Lo Manthang has installed signboards to ease travel, while local entrepreneurs call for lower fees and longer stay flexibility to boost tourism. Upper Mustang has welcomed foreigners since 1992.

Nepali Insurance Companies Eye Overseas Branches to Serve Migrant Workers and Boost Remittances:
With over 5 million Nepalis working abroad, insurance companies see overseas branches as a strategic move to ensure worker protection and financial inclusion. Local branches would allow migrants to purchase policies in their language, pay premiums in foreign currency, and simplify claims in case of accidents or death. This would promote savings, channel remittances into productive investments, and strengthen Nepal’s foreign exchange reserves. Under the Insurance Act, 2079, companies need bilateral agreements, regulatory approvals, and minimum capital requirements to operate abroad, making diplomatic coordination and legal compliance essential for expansion.

Maulakali Cable Car in Gandakot Resumes Operations After Damage During Gen Z Protests:
The Maulakali Cable Car in Gandakot, East Nawalparasi, has resumed operations following damage caused during Gen Z movement protests, which involved vandalism and arson. The bottom station suffered significant losses, prompting a temporary closure for repairs. Austrian manufacturer Doppelmayr supplied equipment and technical support for the restoration. Station Manager Suraj Paudel confirmed that the cable car will now operate on its regular schedule, from 6:00 AM to 10:00 PM. The suspension had previously reduced the number of devotees visiting the Maulakalika Temple, but passenger traffic has now increased by over 30 percent since operations resumed. Operational since Baisakh 2080, the cable car has served around 600,000 passengers to date. Its reopening not only restores religious tourism but also revives local economic activity, highlighting the importance of infrastructure resilience and timely restoration after civil disturbances.

Syangja Orange Production Reaches Rs. 1.32 Billion Amid Expansion and Good Weather:
Syangja, Nepal’s leading orange-producing district, produced 23,238 tonnes of oranges worth Rs. 1.32 billion this fiscal year from 2,400 hectares, 1,420 of which are fruit-bearing. Production increased by Rs. 200 million compared to last year due to favourable weather, expansion of cultivated land, and more fruit-bearing trees. About 10% of oranges are consumed locally, with the remainder supplied to major markets including Pokhara, Kathmandu, and Chitwan. Designated pocket areas such as Putalibazar, Bhirkot, and Waling support concentrated cultivation, while new zones like Phedikhola, Aandhikhola, and Biruwa aim to boost output. Farmers earn Rs. 25,000–5.5 million annually.

Nepal’s Economy Expected to Grow 4% in FY 2024/25 Amid Eased Inflation:
Nepal Rastra Bank’s preliminary forecast projects the economy to grow by 4 percent in FY 2024/25 at current prices, with consumer price-based growth at 4.6 percent. The revised growth for FY 2023/24 is estimated at 3.7 percent. The agriculture, industrial, and service sectors are expected to contribute 25.2%, 12.8%, and 62% of GDP, respectively. Bagmati Province holds the largest GDP share at 36.5%, while Karnali remains the lowest at 4.2%. Per capita GNI is estimated at USD 1,517. The report noted Rs 84.4 billion in infrastructure damage during the Gen-Z protests. Prospects indicate improvement across agriculture, industry, and services. Consumer inflation averaged 4.06% as global fuel and commodity prices eased, with inflation likely to remain around 4% amid global fuel trends, domestic rice shortages, and increased election-related spending.

Shortage of Contraceptives Drives Surge in Abortions Across Nepal:
Nepal is witnessing a sharp rise in abortions due to a shortage of family planning commodities, including birth control shots, implants, intrauterine devices, and pills. In FY 2023-24, 105,099 women terminated pregnancies, up from 94,463 the previous year—a 31 percent increase over four years. Experts link the rise in unintended pregnancies to limited access to contraception, raising risks of unsafe abortions and maternal mortality. Despite abortion being legal since 2002, many procedures are still performed by untrained providers or self-induced. The Safe Motherhood and Reproductive Health Rights Act allows abortions up to 28 weeks under certain conditions, with state-run facilities providing free services. Yet nearly half of women wanting to avoid pregnancy do not use modern contraceptives, and discontinuation rates are high. Unintended pregnancies also exacerbate social and economic burdens, including healthcare costs, reduced productivity, and family instability.

Nepal Forms Task Force to Address EPS Workers’ Demands:
The Ministry of Labour, Employment and Social Security has formed a task force to address grievances of Employment Permit System (EPS) workers. Chaired by Labour Minister Rajendra Singh Bhandari, the task force will recommend improvements in forwarding workers’ personal details to prospective South Korean employers and push for increased EPS quotas. Protesting since Wednesday, workers demand prioritisation of agricultural labourers, reinstatement of unjustly removed candidates, repeated forwarding of pending files, prevention of discriminatory practices, and special relief for long-waiting individuals. Authorities aim to ensure at least 95% of rostered workers secure employment and initiate direct dialogue with victims.

DDA Recalls ‘Levoflox-500’ Tablets Over Quality Concerns:
The Department of Drug Administration (DDA) has ordered the recall of ‘Levoflox-500’ tablets, batch number BB-24001, manufactured by Magnus Pharma Pvt. Ltd. Tests conducted at the National Drug Laboratory revealed that this batch failed to meet quality standards. The drug, used to prevent bacterial infections, must not be recommended, sold, distributed, or used. Under Section 14 of the Drug Act, 2035 BS, the sale and distribution of the affected batch are suspended, and all market stock must be recalled. Manufacturers and distributors are required to submit records of the recall to the DDA promptly.

Chinese Tourist Arrivals Disappoint Nepal Despite ‘Visit Nepal Year in China’ Push:
Despite Beijing’s 2024 pledge to send 500,000 Chinese tourists to Nepal in 2025, arrivals from China fell 6.3 percent year-on-year to 95,480, reflecting ineffective marketing and the impact of domestic unrest. Nepal welcomed just over one million tourists in 2025, a marginal 1 percent growth from 2024. Tourism momentum was hampered by the Gen Z protests in September 2025, which caused violent unrest, property damage, and government instability. Additional factors included flight cancellations, high airfares due to airport closures, and prior pandemic-related disruptions. While historic initiatives—free Chinese visas, charter flights, and cultural festivals—boosted arrivals in earlier years, current promotional efforts failed to generate sustained demand. Despite various efforts, overall tourism remains below the pre-pandemic peak of 1.2 million visitors.

Nepalgunj Chamber Submits Seven-Point Memorandum Urging Stricter Smuggling Control:
The Nepalgunj Chamber of Commerce and Industry presented a seven-point memorandum to Lumbini Province’s government, urging tighter control over smuggling. Acting President Chiranjibi Oli submitted the demands to Minister for Internal Affairs and Law Adesh Kumar Agrawal during the Chamber’s 58th anniversary event. Key proposals include mandatory ID checks at the Jamunaha border, installation of scanners, reopening small customs posts closed during the conflict, establishing temporary police posts at smuggling hotspots, and restricting pedal rickshaw border crossings. The Chamber also called for action against customs and administrative staff involved in illegal trade and measures to meet revenue targets. Minister Agrawal assured accountability for lapses, pledged discussions with the federal Ministry of Home Affairs and the IGP, and emphasized stricter enforcement. Lawmakers and former Chamber leaders stressed that unchecked smuggling is harming local businesses. Former presidents were also honored for their contributions to the Chamber’s development.

Kathmandu Metropolis Warns 107 Non-Operational Schools of Reregistration:
Kathmandu Metropolitan City has issued a notice directing 107 schools that are currently not in operation to contact the metropolis’ education department, warning that failure to do so will result in steps toward closure. The notice, issued on Tuesday, states that field inspections found the listed schools—despite having prior approval—not operating or present at their registered locations. Based on a decision by the Metropolitan City Education Committee on September 13, the education department has been authorised to verify such cases and recommend cancellation. Schools claiming to be operational must submit supporting documents within 15 days, or face deregistration under the Kathmandu Metropolitan Education Act, 2018.

Reliance Spinning Mills Concludes IPO Allotment, Issue Oversubscribed 29.42 Times:
Reliance Spinning Mills Limited has successfully completed the allotment of its Initial Public Offering (IPO) issued to the general public through a lottery system, following overwhelming investor demand. The company offered 924,768 ordinary shares at Rs 820.80 per share, attracting over 532,000 applications seeking more than 27.2 million shares. Of the total applications, 519,046 were approved. As the issue was oversubscribed by 29.42 times, only 18,495 applicants received 50 shares each, while 18 applicants received 51 shares. The IPO raised 10.14 percent of the company’s issued capital. Reliance Spinning is Nepal’s second company to issue an IPO under the book-building method.

RSP Proportional List Candidate Sachin Dhakal Withdraws Name Amid PR System Controversy:
Sachin Dhakal, son of Federation of Nepalese Chamber of Commerce & Industries (FNCCI) President Chandra Prasad Dhakal, has withdrawn his candidacy from the proportional representation (PR) list of the Rastriya Swatantra Party (RSP) following widespread criticism over the alleged misuse of the PR system by political elites. The RSP’s PR list has faced strong backlash for failing to serve its constitutional purpose of ensuring inclusion of marginalized and backward communities, instead allegedly favouring wealthy business figures and public personalities. Nepal News had earlier reported on concerns regarding the misuse of the PR quota system by the party. Dhakal, who was ranked second under the Khas Arya (male) category, cited personal reasons and respect for the constitutional spirit of proportional inclusion in announcing his withdrawal. He thanked the party leadership for their trust and said his immediate focus would remain on entrepreneurship and job creation within Nepal to curb youth migration. Trishala Gurung and Asif Shah had earlier withdrawn their names amid the same controversy.