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All schools in Gaur Municipality in Rautahat district have been closed until Friday citing biting cold in the district in the past few days.

Issuing a notice on Monday, the Gaur Municipality announced a holiday in all community and institutional schools until December 26.

Chief Administrative Officer of Gaur Municipality Subas Kumar Thakur said that a decision to give a holiday in the schools was made, as the regular classes were affected due to excessive cold and considering the fact that the cold could impact the school children's health. The holiday will be adjusted with the summer break, it is said. 

Normal life in the district was affected due to a severe cold since the second week of December.

Goods worth Rs 20.14 billion were imported from the Mechi Customs Office in Jhapa in the first five months of the current fiscal year.

Information Officer and Customs Officer of the Mechi Customs Office, Ishwar Kumar Humagain, said that the total import of this year's review period was 7.57 percent more compared to the same period of the last fiscal year. In the first five months of the last fiscal, the Mechi Customs Office imported goods worth Rs 18.72 billion.

However, the total export of goods from the Mechi Customs Office has decreased in this period. The total exports stood at Rs 10.71 billion in the review period, which was Rs 11.47 billion in the same period last year.  

Cardamom, tea, plywood, veneer sheet, broom grass, ginger and iron sheet are the major exportable goods from the Mechi Customs Office while petroleum goods, readymade garments, vegetables, auto parts, cement clinker, cosmetics goods, coffee, plastic goods, shoes and some others are the major imported goods.

Likewise, the Office collected slightly more than Rs 6.82 billion in revenue from the exports and imports of goods during the first five months starting from the month of Shrawan, officials shared.

Any individual receiving wages from the institutions run under the grants of federal, province and local governments shall be ineligible if s/he is named as a candidate in the closed list of the political parties under the proportional representation (PR) electoral system in the forthcoming House of Representatives (HoR) elections scheduled for March 5.

As per the House of Representatives Member Election (First Amendment) Guidelines-2082, anyone charged with corruption, rape, human trafficking and smuggling, drug smuggling, money laundering, passport misuse and abduction will also be declared ineligible to become candidates in the poll. Likewise, the candidacy of those individuals sentenced on different charges shall be termed invalid if two years have not passed after the sentence, the new amendment to the election laws stated.

Furthermore, the candidacy shall be terminated if the individuals named in the closed list of the political parties were convicted of criminal offenses or if they have been sentenced to life imprisonment or imprisonment for 20 years, and the verdict was final.

MCA-Nepal has signed two essential contracts totaling USD 23.66 million for road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact.

These contracts jointly represent a major step forward for the Compact’s goal to advance Nepal’s long-term economic growth and development, MCA-Nepal said in a press statement. 

MCA-Nepal signed today a USD 20 million contract with Sharma – Kumar Joint Venture for the Road Upgrading Works using Full-Depth Reclamation & Superpave Technology on the Dhankhola to Lamahi section of the East-West Highway, as part of implementing the Road Maintenance Project under the MCC Nepal Compact. 

Additionally, MCA-Nepal recently signed a supporting USD 3.66 million contract with Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT) for Consulting Services for Supervision of upgrading works of this road section and Design and Construction Supervision for Periodic Maintenance of the Narayanghat to Mugling Road Section, the statement says. 

Khadga Bahadur Bisht, executive director at MCA-Nepal, signed and exchanged the contract for the Dhan Khola - Lamahi Road works with Saurav Sharma, the authorized representative of Sharma – Kumar Joint Venture, in the presence of the U.S. Ambassador to Nepal  Dean Thompson, Joint Secretary at the Ministry of Finance Dr. Dhani Ram Sharma, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal, the Director General at the Department of Roads Dr. Bijaya Jaishi, MCA-Nepal Board Members, MCC Nepal Acting Country Director Sanjay Poudyal and MCC and MCA-Nepal officials. 

The project includes the construction of a 7-meter carriage way and 2.5-meter shoulder on both sides of the road, making it 12 meter wide using Full-Depth Reclamation & Superpave technology for the upgradation of the 40km Dhan Khola to Lamahi section of the East-West Highway and periodic maintenance of the Narayanghat to Mugling Road Section, the statement reads. 

The upgrading and maintenance works will be conducted with new technologies, i.e., Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave), for the first time in Nepal, the statement says. 

Addressing the event, the U.S. Ambassador to Nepal  Dean Thompson said, “The upgrading of the Dhan Khola - Lamahi Road project and the Narayanghat - Mugling Road Maintenance project represent much more than individual contracts. Together, they are another milestone reflecting the strength of the U.S-Nepal partnership, the momentum of the Millennium Challenge Compact, and a shared commitment at all levels of government to delivering tangible results for the people of Nepal and American businesses working in Nepal.” 

He added, “As the Compact delivers essential road infrastructure across Nepal, these two contracts will introduce American excellence in road maintenance.”

Dr. Dhani Ram Sharma, Joint Secretary at the Ministry of Finance, expressed his confidence that the latest technologies going to be used in Nepal for the first time will open the road to sustainable, effective and cost-effective road maintenance, and MCA-Nepal would complete the project within the timeline.  Sushil Babu Dhakal, Joint-Secretary at the Ministry of Physical Infrastructure and Transport, said, “The progress reflects MCA-Nepal’s continued efforts to implement the MCC Nepal Compact by introducing new technologies that improve the quality of Nepal’s road system.” 

MCC Nepal Acting Country Director Sanjay Poudyal said that this project will contribute meaningfully to improving Nepal's road reliability and serve as a practical model that Nepal can replicate more broadly across its road network. He said well-built and well-maintained roads are not merely a consequence of economic growth; they are one of its essential drivers.

MCA-Nepal Executive Director Khadga Bahadur Bisht said, “It is indeed a remarkable milestone to sign two contracts to move ahead with the Road Maintenance Project. The activities under the contracts will help in lowering trade and vehicle operation costs, increase road safety, decrease travel time, and improve travel quality. 

Loan shark victims have started a Kathmandu-centric protest from today.

They will take out a rally from Balkhu and pass through Tripureshwor and Shahid Gate before converging into a corner assembly at Shanti Batika.

Commercial banks have once again lowered deposit interest rates for the month of mid-December to mid-January, extending a downward trend that has continued for several months amid weak credit demand and sluggish economic activities in the country. According to interest rates for the new months published by banks, most commercial and development banks have reduced the maximum interest rate on individual fixed deposits. Only a few have chosen to keep rates unchanged. 

The latest revisions reflect excess liquidity in the banking system and limited lending opportunities as private sector investment remains subdued. Thirteen out of 20 commercial banks in the country have reduced their maximum interest rate on individual fixed deposits for Poush, while seven banks have continued their rates of Mangsir. 

Prime Commercial Bank, Rastriya Banijya Bank and Global IME Bank have reduced their rates by 0.5 percentage points each, while Prabhu and Agricultural Development Bank have lowered their rates by 0.4 percentage points each, and Kumari Bank by 0.38 percentage points. Seven commercial banks have kept their interest rates unchanged. They include Citizens International, Machhapuchhre, NIC Asia, Siddharttha, Nepal Investment Mega, NMB and Himalaya Bank. 

With the fresh revision, Global IME and Himalaya are offering the highest individual fixed deposit interest rates of 5.5 percent each, while the lowest is 4.25 percent offered by Prime Commercial Bank. With this, the average maximum interest rate on individual fixed deposits have dropped to 4.834 percent from 5.0405 percent in the previous month. The average maximum interest rate on institutional fixed deposits have also come down by 0.13 percentage points in Poush.

A similar trend is visible among national-level development banks.Muktinath, Lumbini, Kamana Sewa, Shangrila and Garima Development Banks have reduced their rates for Poush. With the revision, Muktinath and Lumbini are offering a maximum interest rate of 5.5 percent on individual fixed deposits, while Kamana Sewa, Shangrila and Garima have fixed rates at 5.55 percent. Mahalaxmi Development Bank has kept the rate unchanged at 5.8 percent.

Bankers say interest rates are likely to remain under pressure as long as credit growth stays weak. Despite ample liquidity, banks have struggled to expand lending due to low demand for loans, reflecting broader economic slowdown and delayed investment decisions.

The Current Macroeconomic Situation Report for the first four months of 2025/26, published by the Nepal Rastra Bank (NRB) earlier this week, presents a mixed picture of the country’s economy. While inflation has cooled sharply and external sector indicators remain robust, domestic demand, credit growth and capital spending have continued to lag. This has raised concerns about the sustainability of the recovery. While macroeconomic stability has strengthened, momentum in the real economy is uneven.

Inflation drops to multi-year low

Consumer price inflation eased significantly in mid-November 2025, falling to 1.11 percent year-on-year from 5.6 percent a year earlier. Average inflation during the first four months stood at 1.53 percent, well below 4.59 percent in the same period of the previous fiscal year. This reflects a sharp correction in food prices and subdued domestic demand.

The central bank has set a target of containing inflation below five percent in the current fiscal year.

While food and beverage prices declined by 3.32 percent, mainly due to a steep fall in vegetable prices, non-food and services inflation remained moderate at 3.69 percent. The data suggest that price stability has returned across both rural and urban areas, with inflation staying below two percent in most provinces. However, persistent price increases in services such as education, clothing and miscellaneous goods indicate that inflation risks have not disappeared entirely.

Trade gap widens despite export surge

Nepal trade gap widened further during the review period despite impressive export growth. Merchandise exports surged by 77.5 percent to Rs 93.5bn in the first four months of 2025/26, largely driven by shipments of edible oils, cardamom, jute goods and footwear to India. Exports to India more than doubled, while exports to China fell sharply during the period. 

Imports, meanwhile, rose by 18.7 percent to Rs 609.45bn as consumption gradually picks up. This caused the trade deficit to expand by 12 percent to Rs 515.96bn, reversing last year’s modest contraction. Although the export-import ratio improved to 15.3 percent, imports continue to vastly outpace exports.

Remittances anchor external stability

Remittances remain the single most important pillar of Nepal’s external sector. According to the report, inflows jumped by 31.4 percent to Rs 687.13bn during the review period. A strong growth in remittances has been providing strong support to household consumption as well as foreign exchange reserves and the balance of payments.

The current account recorded a surplus of Rs 279.65bn, nearly double the level of a year earlier, while the overall balance of payments surplus widened to Rs 318.4bn. However, the net services deficit widened to Rs 32.91bn, largely due to a significant 11.8 percent increase in travel payments. Education-related travel payments accounted for over half of this outlay, signaling continued foreign currency outflows for overseas studies.

Likewise, foreign exchange reserves expanded by 14.1 percent to Rs 3055.52bn (or $21.52bn). According to the central bank, the reserves are sufficient to cover more than 20.8 months of merchandise imports.

Weak capital spending

On the fiscal front, government finances show rising expenditure pressures but slow revenue growth. Total government spending reached Rs 468.88bn in the first four months, while revenue mobilization stood at Rs 326.55bn. This resulted in a fiscal deficit of Rs 142bn in the four-month period. 

Capital expenditure declined by more than 26 percent year-on-year to just Rs 25.31bn. This massive decline in development spending, coupled with a minimal revenue, speaks volumes about administrative bottlenecks and a failure to effectively deploy capital for development.

Subdued credit growth

Despite ample liquidity in the financial system, credit expansion remained subdued at 1.2 percent due to low demand from the market. While private sector credit from both commercial banks and finance companies increased 1.3 percent each, credit disbursed by development banks decreased by 0.1 percent.

According to the central bank, total private sector credit remained at Rs 5,562.75 in mid-December. Credit flow toward agriculture and some service sectors has come down, while credit growth has been concentrated in real estate, margin lending and construction-related activities.

The number of people obtaining non-resident citizenship has increased in Chitwan compared to those who have given up their Nepali citizenship.

Since last July, 40 individuals have renounced their citizenship, while 49 have acquired non-resident Nepali citizenship.

Assistant Chief District Officer Chiranjivi Sharma pointed out that among those renouncing their citizenship are 13 women and 27 men. He noted that individuals usually renounce their Nepali citizenship upon arriving in Nepal to obtain non-resident citizenship.

Since July, 20 women and 29 men in the district have successfully secured non-resident citizenship. He explained that to acquire citizenship, one must fill out the form provided by the office, submit a photocopy of their passport, a photocopy of their foreign citizenship, a renunciation certificate of citizenship, and have it verified by a relative or acquaintance.

He mentioned that Nepalis living abroad often seek non-residential citizenship to facilitate investments in Nepal. Additionally, he stated that in the district, the citizenship of two individuals has been revoked.

Citizenship has been revoked for those holding dual citizenship or who have engaged in anti-state activities. Since July, 3,759 individuals have received citizenship based on descent from this office, and 11 individuals have obtained citizenship through marriage.