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 Drops 17.53 Points to 2,714.05 on Final Trading Day

The Nepal Stock Exchange (NEPSE) index closed the week in the red, falling 17.53 points (0.64 percent) to settle at 2,714.05 on Thursday. The Sensitive Index also slipped by 1.55 points to 462.71. Daily turnover reached Rs 14.563 billion with over 35,477,939 units of shares traded. While the Hydropower and Investment sectors saw marginal gains, the Development Bank and Manufacturing indices dropped by over 2 percent. Ngadi Group Power Limited recorded the highest turnover of Rs 599.9 million, closing at Rs 430.

No Bids Received for 100 MW Power Import from India

Nepal Electricity Authority (NEA) received zero bids for its proposal to import 100 MW of electricity from India for the dry season. The tender, issued on January 19, with a deadline of January 28, sought power for the February-May period. Spokesperson Rajan Dhakal suggested the price caps of INR 6.60 for February-March and INR 6.90 for April-May were likely too low for Indian traders. Consequently, NEA will now rely on the India Energy Exchange (IEX) and the Nepal-India Power Exchange Committee (PEC) to meet the winter deficit. Currently, NEA has permission to import up to 654 MW through the IEX market.

Commercial Bank Profits Reach Rs 30.52 Billion

Net profits of the country’s 20 commercial banks rose by 12 percent to Rs 30.52 billion during the first half of the fiscal year 2025/26. Despite the growth, the industry faced significant challenges as non-performing loans (NPL) increased from 4.51 percent to 5.09 percent following the September 2025 unrest. Nabil Bank led the sector with a profit of Rs 4.75 billion, while Kumari Bank saw a massive 907 percent surge to Rs 2.72 billion. Conversely, Laxmi Sunrise Bank recorded a loss of Rs 270 million, and Citizens Bank saw profits drop by 47 percent. Banks have collectively set aside Rs 28.74 billion for loan loss provisioning.

Development Banks Report 32 Percent Profit Surge

The country’s development banks recorded a 32 percent increase in net profit, totaling Rs 3.424 billion in the second quarter of the current fiscal year 2025/26. This growth is primarily attributed to the reversal of impairment charges as provisioning expenses decreased. Muktinath Bikas Bank led with a profit of Rs 672 million, followed by Garima Bikas Bank at Rs 635.1 million. While national-level banks flourished, three district-level institutions, which are Salpa, Sindhu, and Narayani, remained in deficit. Excel Development Bank showed a significant recovery, returning to a profit of Rs 88.5 million from previous losses.

New Life Insurance Business Surges by 36 Percent

New life insurance business in the country grew by 36.60 percent in the first half of the fiscal year 2025/26. Data from the Nepal Insurance Authority shows that 14 companies collected Rs 21.64 billion in first-time premiums, up from Rs 15.84 billion last year. Nepal Life Insurance led the market with Rs 5.99 billion in new business, a growth of 52 percent. IME Life saw the highest growth rate at 84 percent. Additionally, renewal premiums reached Rs 72.73 billion, marking a 14.75 percent increase. Overall, insurance activity shows a strong recovery across all providers, except for one company.

Govt. to Revise Hotel Standards for Green Hospitality

The Ministry of Culture, Tourism, and Civil Aviation is set to overhaul star-rating standards for hotels, shifting focus from room quantity to quality and sustainability. Director General Ram Krishna Lamichhane of the ministry stated that the new “Green Hospitality” policy will prioritize eco-friendly infrastructure and local identity. Currently, five-star hotels in Kathmandu must have 100 rooms, a requirement often criticized by the Hotel Association of Nepal (HAN) for prioritizing size over service. As of August 2025, Nepal has 214 star-rated hotels with over 20,343 beds. The revision committee, including members from the International Centre for Integrated Mountain Development (ICIMOD) and the Nepal Academy of Tourism and Hotel Management (NATHM), aims to finalize these international-standard “Green and Clean” guidelines within a month.

Three Tiers of Government Commit 10 Percent to Agriculture

The federal, provincial, and local governments have agreed to allocate at least 10 percent of their respective budgets to the agricultural sector. This decision was reached during the 11th thematic committee meeting chaired by Minister for Agriculture and Livestock Development Dr. Madan Prasad Pariyar in Bardiya. The meeting focused on establishing provincial food safety laws, improving minimum support price programs, and streamlining chemical fertilizer distribution. Authorities also pledged to remove duplication in subsidy systems and enhance agricultural insurance. The agreement aims to boost youth engagement in farming and ensure better disaster preparedness for the sector across all seven provinces.

National Conference Discusses AI in Nepal’s Capital Market

Nepal Open University and the Ace Institute of Management hosted the first national conference on “Capital Market in the AI Era” on Thursday. Over 40 researchers, policymakers, and investors discussed the integration of artificial intelligence (AI) in the Nepal Stock Exchange (NEPSE). NEPSE Chairman Hemanta Bashyal briefed attendees on the regulatory challenges and the potential for AI-driven investment decisions. The conference focused on the need for new legal frameworks to address algorithmic trading and the importance of technical analysis in the Nepali context. Experts emphasized that while AI can enhance market transparency, current policies must be updated to manage emerging technological risks in the securities market.

Speaker Orders Implementation of MP Benefits Act

Sudurpashchim Province Speaker Bhim Bahadur Bhandari directed the provincial government on Wednesday to implement the Office Bearers and Members’ Benefits Act 2018. This follows a letter from the Federal Ministry of Finance on September 23, 2025, which ordered budget cuts that led to the suspension of salaries for personal secretaries and advisors of provincial lawmakers. Speaker Bhandari argued that the federal interference violates the constitutional rights of the province under Articles 56 and 57. Lawmakers expressed frustration, noting that while administrative staff and advisors haven’t been paid, the government is currently amending the Local Service Act to address employee upgrades.

Kohalpur-Surkhet 132 kV Transmission Line Completed

The construction of the Kohalpur-Surkhet section of the 132 kV transmission line has been completed. Shashibhushan Shah, the Karnali Provincial Chief of the Nepal Electricity Authority, announced that testing of the double-circuit line will begin tomorrow. The project, a joint investment between the Government of Nepal and NEA, aims to stabilize power supply in Banke, Bardia, and Surkhet. NEA has issued a high-voltage safety warning, urging locals to stay away from towers and electrical structures during the testing phase. Any technical glitches or sparks observed during the trial should be reported immediately to the nearest police station.

Dang Records Rs 720 Million New Investment in Six Months

Dang district attracted over Rs 720.8 million in new investments during the first half of the current fiscal year 2025/26. The Cottage and Small Industries Office, Dang, reported that Rs 423.2 million went into small industries, while Rs 297.5 million was invested in commerce. A total of 588 new firms were registered, creating jobs for 962 individuals. However, 248 businesses officially closed during the same period, with many owners citing high debt and lack of market demand as reasons for migrating abroad. Information Officer Gopal Poudel of the office noted a general lack of enthusiasm among new investors due to the current economic climate.

Migrant Workers Face Rs 14,000 Burden for UAE Police Reports

Nepali workers traveling to the UAE are facing an additional financial burden of over Rs 14,000 for mandatory police report attestations. Following the Gen Z protests, the UAE made police reports compulsory for Nepali entrants, charging AED 353.27 Dirhams (Rs 14,145) for verification via VFS Global. According to the Nepal Association of Foreign Employment Agencies, they criticized the government’s diplomatic silence, noting that workers already pay between Rs 200,000 and Rs 400,000 for recruitment despite the Rs 10,000 “free visa, free ticket” cap. In 2024/25, the UAE was Nepal’s top destination, with 274,590 workers receiving labor permits.

Flights Resume as Fog Clears at Domestic Airports

Domestic flight operations at Tribhuvan International Airport (TIA) and other regional hubs resumed on Thursday afternoon after being halted by thick morning fog. General Manager Teknath Sitaula of TIA confirmed that visibility improved by midday, allowing airports in Biratnagar, Rajbiraj, Dhangadhi, and Surkhet to resume services. Earlier in the morning, zero visibility had grounded all flights, causing significant delays for hundreds of passengers. While most stations are now operational, some flights to Bharatpur, Tumlingtar, and Nepalgunj remained affected longer due to lingering haze. Authorities continue to monitor weather patterns as winter fog remains a seasonal challenge for aviation.

System Errors Delay Local Grant Proposals

Provincial and local governments are facing difficulties submitting project proposals for special and complementary grants due to an obstruction in the National Planning Commission’s electronic system. An official noted that no proposals were received as of January 27 because the online portal is undergoing mandatory updates following the eighth amendment to the grant guidelines. The commission set budget limits ranging from Rs 2.5 million to Rs 100 million for projects like waste management, irrigation, and tourism. Despite the delay, the commission stated it will not extend the February 12 deadline, urging local units to keep their documents ready for the system’s restoration.

Snowfall Blocks Containers at Nechung Customs

Heavy snowfall since yesterday in Upper Mustang has stranded several cargo containers at Nechung Customs, located in Lo Manthang Rural Municipality-4. According to local officials, the containers went to the Korala border point on Monday to collect goods but were unable to return due to a massive blizzard that night. While the snow has blocked transport routes, farmers in the high Himalayan and hilly regions are celebrating. This marks the first significant winter precipitation of the year, which is expected to benefit winter crops and increase soil moisture across the high-altitude belts.

Ridge Line Energy to Launch Rs 118 Million IPO

Ridge Line Energy Limited will open its Initial Public Offering (IPO) for the general public starting February 11. The company is offering 11,80,260 units of ordinary shares at a face value of Rs 100, totaling some Rs 118 million. Previously, the firm allotted shares to local residents and Nepali migrants abroad. Investors can apply for a minimum of 10 units and a maximum of 50,000 units through the C-ASBA system until February 16. Care Ratings Nepal assigned a “CARE-NP BB” rating to the issue, indicating moderate risk. Prabhu Capital Limited is managing the sale of the Rs 1.185 billion capitalized project.

Gold Hits All-Time High of Rs 339,300

Gold prices in the domestic market jumped by Rs20,500 per tola (11.66 grams) on Thursday, reaching a record Rs339,300, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold had traded at Rs318,800 per tola on Wednesday. Silver prices also rose by Rs205 to Rs7,505 per tola. Both metals recorded their highest-ever prices in the domestic market. Internationally, gold extended its rally as investors sought safe assets amid geopolitical and economic uncertainty, Reuters reported. Spot gold rose 2.6 percent to USD 5,538.69 an ounce after touching an all-time high of USD 5,591.61. Silver also climbed, with spot prices rising to USD 117.30 an ounce after hitting a record USD 119.34.