Kathmandu: Inflation has decreased significantly compared to last year as the average inflation stood at 1.67 percent in the first quarter of current fiscal year compared to 4.26 percent a year ago. 



This is stated in a report entitled 'Current Macroeconomic and Financial Situation of Nepal based on three months data of 2025/26' published by Nepal Rastra Bank (NRB) today. The NRB report said the y-o-y consumer price inflation stood at 1.47 percent in mid-October 2025 compared to 4.82 percent a year ago. 



Food and beverage inflation decreased 2.54 percent whereas non-food and service inflation stood at 3.80 percent in the review month. During the same period in the previous year, the price indices of these groups had increased 7.20 percent and 3.49 percent, respectively. 



Under the food and beverage category, y-o-y price index of ghee &amp; oil sub-category increased 7.75 percent, non-alcoholic drinks 3.71 percent and meat &amp; fish 3.15 percent while y-o-y price index of vegetable sub-category decreased 15.63 percent, spices 7.82 percent and pulses and legumes 4.41 percent. 



Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 15.51 percent, education 7.67 percent, clothes and footwear 6.29 percent, tobacco products 4.84 percent, and furnishing &amp; household equipment 4.55 percent while y-o-y price index of insurance &amp; financial services sub-category decreased 0.23 percent. 



During the review month, y-o-y price index in rural areas increased 1.29 percent, while in urban areas, it rose 1.53 percent. Based on provinces, in the review month, y-o-y consumer price inflation in Koshi Province is 2.33 percent, Madhesh Province 1.20 percent, Bagmati Province 1.13 percent, Gandaki Province 1.16 percent, Lumbini Province 1.89 percent, Karnali Province 1.91 percent, and Sudurpashchim Province 0.69 percent. 



In the review month, y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 1.43 percent, 1.29 percent, 1.50 percent and 2.33 percent respectively. Wholesale Price Inflation (WPI) The y-o-y wholesale price inflation stood at 1.32 percent in mid-October 2025 compared to 5.51 percent a year ago. 



The y-o-y wholesale price inflation of consumption goods decreased 1.24 percent while intermediate goods and capital goods stood at 2.71 percent and 2.40 percent respectively. The y-o-y wholesale price index of construction material increased 3.88 percent in the review month. 



The y-o-y salary and wage index increased 4.48 percent in first quarter of fiscal year 2025-26 compared to 3.31 percent a year ago. Based on provinces, in the review quarter, the increase in y-o-y salary and wage index in Koshi Province is 1.12 percent, Madhesh Province 3.62 percent, Bagmati Province 4.16 percent, Gandaki Province 9.42 percent, Lumbini Province 6.68 percent, Karnali Province 1.36 percent, and Sudurpashchim Province 5.62 percent. 



Consumer Price Inflation in Nepal and India The y-o-y consumer price inflation in Nepal remained at 1.47 percent in mid-October 2025. Such inflation in India stood at 0.25 percent in October 2025.

Inflation down significantly in Q1 compared to same period last year: NRB

Kathmandu: Nepal has received $9.4 million (Rs 1.19 billion) from World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing approximately 1.88 million tons of carbon dioxide under its REDD+ Emission Reductions Program in the Terai Arc Landscape. 



This is the first payment under the FCPF’s Emission Reductions Payment Agreement (ERPA) — a major milestone in Nepal’s efforts to reduce emissions from deforestation and forest degradation and promote inclusive, sustainable forest management, the WB stated in a press release. The FCPF programme in Nepal is characterized by its strong community-based approach to sustainable forestry. 



Implemented across the Terai Arc Landscape — home to both rich biodiversity and a dense human population — the programme brings together local communities, Indigenous Peoples, and civil society organizations to protect and restore forests while improving rural livelihoods. 



“This milestone payment is testament to Nepal’s success in reducing deforestation, strengthening forest governance, enhancing biodiversity conservation, and expanding sustainable livelihood opportunities for local communities,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka. 



The payment will be distributed in accordance with Nepal’s Benefit Sharing Plan, developed through a participatory process that included consultations with local communities and key stakeholders. The plan ensures that forest-dependent communities and Indigenous Peoples directly benefit from the results of their efforts. 



Investments will support continued forest restoration, community enterprises, and climate-resilient livelihoods — reinforcing Nepal’s global reputation as a pioneer of community forestry and participatory resource management, according to the WB. 



“This results-based payment reflects the efforts and dedication of our forest-dependent communities, Indigenous Peoples, and the government in conserving and managing our forests. Nepal remains committed to advancing climate action through inclusive and community-led forest management,” said Dr. Rajendra Prasad Mishra, Secretary of Ministry of Forests and Environment.

Nepal receives USD 9.4 million from World Bank's FCPF

Kathmandu: Nepali Embassy in Portugal has urged Nepalis living in Nepal and different countries in the Middle East to avoid fraud in the name of working visa to Portugal. 



Issuing a press release on Wednesday evening, the Embassy urged all the bodies concerned to adopt precaution in the context when the government of Portugal has suspended to issue all types of working visa except of highly skilled jobs effective from October 23, 2025. 



At a time when information is being received that Nepalis staying in Nepal and different countries in the Middle East are being scammed in the pretext of getting them job in Portugal, the Nepali Embassy warned not to carry out or be involved in such illegal activities. 



Clarifying that no one could come here in working visa as the government of Portugal has already suspended issuing such type of visa, the Embassy requested all the bodies concerned to avoid any fraud conducted in the name of sending people to Portugal for employment.

Working visa suspended in Portugal: Nepali Embassy requests to avoid fraud

Kathmandu: Nepal’s economic growth is projected to slow sharply to 2.1 percent in FY26 from 4.6 percent in FY25, largely due to the impact of the September 2025 public unrest and ensuing political instability, according to the World Bank’s latest Nepal Development Update released today.



The report, titled “Reforms to Accelerate Public Investment,” notes that the services sector is expected to be the most affected, with the overall economic outlook remaining highly uncertain. The World Bank, however, projects a rebound to 4.7 percent in FY27, supported by reconstruction efforts.



On the upside, a successful political transition and sound economic management could improve investor confidence and support recovery. Conversely, prolonged uncertainty could dampen sentiment and delay investment.



“To restore business confidence and accelerate recovery, the government has launched an Integrated Business Recovery Plan offering grants, tax incentives, and operational support,” said Finance Minister Rameshore Prasad Khanal. He added that public resources have been reprioritized for infrastructure rehabilitation and election preparations, while a Reconstruction Fund has been set up to rebuild damaged public and private assets.



Beyond short-term recovery, the report stresses the need for stronger public investment management to drive long-term growth. In FY24, Nepal’s capital spending stood at 7.9 percent of GDP, significantly below the 10–15 percent required annually to meet infrastructure needs.



“Boosting public investment is critical for improving growth, creating jobs, and building prosperity for Nepalis,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka. “This will require reforms in project planning and budgeting, streamlining land and tree clearance processes, improving cash management, and updating procurement laws.”



The Nepal Development Update, published twice a year, provides an overview of key economic trends and policy challenges, situating Nepal’s performance within a broader global context.

Nepal’s growth expected to slow in FY26 amid political transition

Kathmandu: Nepal Airlines Corporation (NAC) has terminated the contract of six employees stationed in various domestic stations following the suspension of its domestic flight operations.



According to a press statement issued on Tuesday by NAC spokesperson Anil Ghimire, the corporation implemented the decision in line with its policy to reduce staff in areas where operations have been halted. The statement notes that the employees hired on a contract and daily wage basis are no longer required due to the current operational halt.



The corporation stated that the decision was made as part of efforts to manage financial burdens and improve internal administrative efficiency. With domestic flights currently grounded, NAC said it has prioritized cost-cutting measures to maintain sustainable operations.



The corporation further mentioned that it remains committed to continuing necessary reforms to ensure smoother and more efficient service delivery in the future.

NAC terminates contract of 6 employees after suspension of domestic flights

Kathmandu: Fourteen Nepali nationals forced to work in illegal online scamming centers in Myanmar have been rescued and brought back to Nepal, the Embassy of Nepal in Bangkok said on Sunday. The group was transported from Myawaddy in Myanmar to Thailand’s Tak Province via the Mae Sot Immigration Office and repatriated to Kathmandu on Nepal Airlines flight RA402.



According to the embassy, coordinated efforts are ongoing to rescue 11 additional Nepalis who are still stranded in Myanmar. Since October 19, more than 2,000 foreigners from 28 countries — including 38 Nepalis — have crossed into Thailand after escaping scam operations in Myawaddy.



The embassy urged Nepali citizens to seek foreign employment only through official labor approval procedures and warned against falling victim to false job promises offering easy income in countries such as Cambodia, Laos, Myanmar, and Thailand. It also called on media and civil society to raise awareness to prevent further exploitation.

14 Nepalis rescued from forced online scamming operations in Myanmar

Kathmandu: Two hundred and twenty-nine electric jeeps, cars and vans worth Rs 680 million 500 thousand have been imported through the Birgunj checkpoint in the first three months of the current fiscal year 2025/26. 



Compared to the three months of the previous fiscal year, 2024/25, the import of electric vehicles has surged in the same period of the current fiscal year. In the three months of the previous fiscal year, only 97 electric jeeps, cars, and vans worth Rs 144.9 million were imported. 



The increase in imports through this border has occurred due to the common people's attraction to electric vehicles and the poor condition of the roads from the Chinese border. In the first three months of the current fiscal year, revenue of Rs 457.2 million has been collected from the import of electric jeeps, cars, and vans. 



Bishnu Prasad Gyawali, Chief Customs Administrator at the Birgunj Customs Office, also stated that there has been a significant increase in the import of electric vehicles recently. During that period last fiscal year, only Rs 91.1million revenue was collected from the import of electric vehicles. 



In the first three months of the current fiscal year, 2,194 electric motorcycles valued at Rs 287.9 million have been imported. While in the same period of the previous fiscal year, 1,481 electric motorcycles worth Rs 211.7 million were imported.

EV import increases in Nepali market

Kathmandu: For the first time, frozen French fries produced in Nepal have been exported to the United States.



First Choice Foods Pvt. Ltd., a company based in Rupandehi, exported two containers (43,520 kilograms) of frozen French fries through the Bhairahawa Customs Office on Tuesday. According to the customs office, the shipment is valued at $38,480 (approximately Rs 5.49 million).



The consignment was imported by ZENT Co. LLC DBA TCF Foods in the U.S.



The Customs Office Bhairahawa described the export as a significant milestone for Nepal’s food processing industry, stating that entry into a competitive market like the U.S. marks progress in industrial expansion, foreign exchange earnings, and entrepreneurship development.



“The entry of Nepali French fries into the American market will open doors for other Nepali products in global markets in the future,” the office said in a statement.



The customs office also pledged to further improve export-related services, enhance information accessibility, and strengthen coordination with the private sector and producers.

Nepal exports locally produced frozen french fries to U.S. for the first time

Kathmandu: Asian Development Bank (ADB), the World Bank Group’s International Development Association (IDA), and the Swiss Agency for Development and Cooperation (SDC) have signed a three-year Memorandum of Understanding (MoU) to support Nepal in strengthening disaster risk management and building climate-resilient infrastructure.



Nepal is increasingly vulnerable to climate-related hazards such as floods, landslides, droughts, and glacial melt, which have led to rising human and economic losses. Key sectors like hydropower, considered crucial for the country’s growth, are also at high risk from climate-induced disasters.



“Investing in climate-resilient infrastructure and disaster risk management has never been more critical,” said Arnaud Cauchois, ADB Country Director for Nepal. He said the partnership aims to protect communities and essential assets, while also generating jobs and fostering long-term growth.



The collaboration will focus on supporting the Government of Nepal in developing resilient infrastructure, particularly within the Dudh Koshi River Basin in Koshi Province, and advancing ongoing and future investments in vulnerable sectors including hydropower.



“Nepal is among the most climate-vulnerable countries globally. Building resilience must be at the center of its development priorities,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka. He noted that the partnership seeks to combine collective expertise to better protect communities, investments, and jobs.



The partnership will emphasize improving multi-hazard risk assessment, expanding early warning systems, advancing climate risk financing tools, and strengthening institutional capacity. Joint research, knowledge sharing, and technical cooperation with the Nepali government and local stakeholders will also be prioritized.



Ambassador Arno Wicki, SDC Assistant Director General, said Switzerland will mobilize experts from academia and the private sector to help co-develop solutions for climate-resilient infrastructure and disaster risk reduction.



Through this MoU, the three international development partners aim to enhance coordination, avoid overlap in efforts, and utilize shared resources to support Nepal in advancing sustainable and resilient development.

ADB, World Bank, and SDC sign three-year pact to strengthen Nepal’s climate resilience

Kathmandu: Government of South Korea is set to establish a visa center in Nepal to facilitate Nepali workers seeking employment opportunities in the country.



During a meeting with Finance Minister Rameshore Khanal, South Korean Ambassador Park Tae-young announced that the visa center would be launched soon. The envoy urged the Government of Nepal to help returning migrant workers utilize their skills through entrepreneurship and pledged to encourage Korean investors to promote local products in Nepal, according to a statement from the Ministry of Finance.



South Korea remains a major destination for Nepali migrant workers due to its higher wages, regulated labor market, and worker-friendly environment.



Nepal and South Korea signed a Memorandum of Understanding (MoU) in 2007 under the Employment Permit System (EPS), with recruitment beginning in 2008. For 2025, South Korea has allocated 5,300 slots for Nepali workers in the manufacturing and agriculture; livestock sectors, according to the EPS Korea branch.



In the fiscal year 2024/25, 14,224 Nepalis obtained labor permits to work in South Korea. Over 110,000 Nepalis have migrated there for employment so far, with around 50,000 currently working in the country.

South Korea to open visa center in Nepal to support migrant workers

Kathmandu: The Ministry of Labour, Employment and Social Security has informed that the 10-point criteria set by the Malaysian government for Foreign Employment Recruitment Companies of five countries, including Nepal can in no way be accepted. 



Spokesperson of the Ministry, Pitambar Ghimire informed that the Ministry has officially written to convey this message to the Malaysian government through the Ministry of Foreign Affairs. 



Nepal has informed its inability to enforce the 10-point criteria determined by Malaysia for the manpower companies in regard to foreign employment, the Ministry stated, adding the formal communication was made to explore solution through diplomatic measures. 



"The manpower business companies have protested the criteria brought out by the Malaysian government", spokesperson Ghimire said, adding that, "We submitted the letter through the Ministry of Foreign Affairs informing our inability to accept the criteria as it is". 



It may be noted that the Ministry of Foreign Affairs of Malaysia had informed Kuala Lumpur-based Nepali Embassy about the 10-point criteria. In accordance with this information, the Ministry of Human Resource of Malaysia has requested manpower companies to send details of the manpower companies within 15 November 2025. 



The Malaysian government had shared the criteria to Nepal along with India, Bangladesh, Pakistan and Myanmar. Importantly, it is stated that no agency must have held a license for at least five years, have a track record of sending 3,000 workers during the past three years, and have sent workers to at least three countries in the last five years. 



Also, they should have obtained all valid permissions related to training, evaluation, recruitment, and have received a certificate of good conducts issued by the authorized agencies of their countries. The manpower agencies should not be involved in any form of forced labour, human trafficking, violation of labour law or extortion related illegal actions. 



The company shall be permanently run in an area of at least 10,000 sq feet with adequate structures, and must submit recommendation letters received from international employers. The foreign employment agencies have been expressing their reservations to these criteria.

Labour Ministry shows reservation on foreign employment criteria of Malaysian government

Kathmandu: Price of gold increased by Rs 700 per tola on Sunday, reaching Rs 239,700, according to the Federation of Nepal Gold and Silver Dealers’ Association. The previous trading day’s price stood at Rs 239,000 per tola, marking a rise of Rs 2,700 on Friday.



Gold had earlier hit a record high of Rs 258,000 per tola on October 17.



Meanwhile, silver prices fell by Rs 5 per tola and are currently being traded at Rs 3,055 per tola.

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