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Workers at the under- construction Arun III Hydropower Project powerhouse have launched a strike over delayed payments for several months. 

It is said 1,500 workers for the 900-MW Project have reportedly not been paid for the past six months. 

The workers and petty contractors at Pukhuwa of Chichila Rural Municipality-2 where the powerhouse is based, have been on strike since this morning. 

As a result, the entire works on the Project have been affected. 

Workers have complained that the construction company ignored their repeated concerns regarding timely payment. 

Chief District Officer Sirjana Thapaliya also confirmed the launch of the strike by workers.

Earlier, the workers had approached the District Administration Office with an application, requesting its facilitation in ensuring timely pay.

The project is being developed by the Indian Satluj Company. 

Over 3,000 workers from Nepal and India have been employed at the dam site in Phyksida, Makalu Rural Municipality, and at the powerhouse construction site in Pukhuwa.

The project, which has a five-year deadline, is estimated to cost Rs 120 billion. 

Under the agreement, the project will provide 30 units of electricity free of cost to each affected family. 

Nepal is expected to receive Rs 340 billion in royalties over 25 years, along with free electricity and discounts on income tax, VAT, and customs duties, it is said.

The price of gold has increased by Rs 7, 400 per tola in the domestic market on Wednesday. 

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 297, 600 per tola today. It was traded at Rs 290, 200 per tola on Tuesday. 

Similarly, the price of silver has increased by Rs 100 and is being traded at Rs 4, 945 per tola today.

Nepal’s external trade is expanding at a healthy pace. The country’s total foreign trade expanded by 13.55 percent to reach Rs 1,480.36bn over the first eight months of the current fiscal year. Figures released by the Department of Customs (DoC) show imports are rising strongly and exports are growing faster in percentage terms. However, the overall gap between the two remains stubbornly wide.

In the eight months of fiscal year 2025/26, trade deficit widened by 11.22 percent to Rs 1,098bn, up from Rs 987.39bn in the same period last year. Total imports surged by 12.54 percent to Rs 1,289.25bn, while exports by a notable 20.83 percent to Rs 191.11bn. On the surface, this suggests a positive shift—exports are growing faster than imports. But the reality is more complex.

Nepal’s external trade is overwhelmingly tilted toward imports. Even after healthy exports growth in the review period, imports account for 87.09 percent of total trade, while exports make up just 12.91 percent. Over the past decade, imports have nearly doubled, rising from Rs 984bn in fiscal year 2016/17 to Rs 1,804.12bn in the previous fiscal year. The trade deficit during the period remained at Rs 1527.09bn. Nepal imports fuel, vehicles, machinery, and a wide range of consumer goods, including food products, while exporting relatively little in comparison. This trend paints a picture of an economy driven largely by consumption rather than production. 

A persistent trade deficit puts continuous pressure on foreign currency reserves. The country relies heavily on remittances sent by workers abroad to finance its import bill. When remittance inflows weaken or external conditions shift, such as rising global fuel prices or slowing demand, this model becomes vulnerable.

In 2022, Nepal faced a sharp decline in foreign exchange reserves, which fell by more than 16 percent within seven months. To arrest the slide, the government imposed restrictions on the import of non-essential goods such as cars, cosmetics, and gold to prevent a balance of payments crisis. While those measures provided temporary relief, they did not address the structural roots of the problem.

Nepal is highly dependent on imports, and the gap between what it buys and sells abroad is still vast. The modest rise in share of exports in total foreign trade indicates that exports are either growing faster than imports or that import growth is beginning to slow slightly. However, the improvement is too small to significantly alter the macroeconomic picture. Also, a bulk of export receipts come from the export of processed edible oils like soybean and sunflower to neighboring India. Nepali importers import crude edible oil from countries as far as Argentina and export it to India after some value addition. If India increases crude import quota for its refineries, Nepal will lose a significant volume of its exports.   

One of the major factors behind rising imports and widening trade deficit is Nepal’s weak domestic production base. Limited industrial capacity, high production costs, and low competitiveness have for long affected Nepal’s ability to produce goods for both domestic consumption and export. As a result, the country remains reliant on foreign products even for basic needs. Despite being an agricultural nation, Nepal imports a significant volume of farm products, especially from India. The country imported paddy and rice worth Rs 27.95bn in the first eight months of fiscal year 2025/26. Potato imports also rose to reach Rs 5.73bn during the period.

Experts say traditional export sectors such as carpets, garments, and certain agro-products can perform better. However, this will be only possible if there is policy support aimed at boosting production, diversifying exports, and improving competitiveness. The political leadership should realize that encouraging industrial growth, investing in export-oriented sectors, and reducing reliance on imports are no longer optional—they are essential for long-term stability.

The Nepal Stock Exchange (NEPSE) surged by 19. 70 points to close at 2, 851. 09 points on Tuesday. 

Similarly, the sensitive index dropped by 3. 26 points to close at 484. 84 points.

A total of 27,942,779-unit shares of 339 companies were traded for Rs 1. 63 billion.

Meanwhile, Reliance Spinning Mills Limited (RSML), Bhujung Hydropower Limited (BJHL), Super Khudi Hydropower Limited (SKHL), Ridge Line Energy Limited (RLEL) and Hotel Forest Inn Limited (HFIN) were the top gainers today with its price surging by 10. 00 percent.

Similarly, Saptakoshi Development Bank Ltd (SAPDBL) was the top loser as its price fell by 8. 96 points. 

At the end of the day, the total market capitalization stood at Rs 4. 84 trillion.