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 Index Drops 19.85 Points with Rs 9.109 Billion Turnover

On the first trading day of this week, the Nepal Stock Exchange (NEPSE) index witnessed a double-digit decline. Today, the NEPSE index decreased by 19.85 points to settle at the 2,694.20 level. According to NEPSE, 22,060,454 shares of 329 companies were traded 110,728 times, resulting in a total turnover of Rs 9.109 billion. Today, the trading group increased by 0.55 percent, while the sub-indices of all other groups declined. Banking fell by 0.42 percent, Development Bank by 0.75 percent, Finance by 0.44 percent, Hotels and Tourism by 1.75 percent, Hydropower by 1.36 percent, and the Investment group by 0.96 percent. Similarly, life insurance decreased by 0.52 percent, manufacturing and processing by 0.76 percent, microfinance by 0.57 percent, mutual funds by 0.50 percent, non-life insurance by 0.63 percent, and the others group by 0.92 percent.

NRB to Collect Rs 30 Billion from Banks for 52 Days

Nepal Rastra Bank (NRB) will collect Rs 30 billion from banks and financial institutions (BFIs) for 52 days starting today to manage excess liquidity in the banking system. The funds will be raised through a deposit auction, with BFIs required to submit online bids by 2 PM on Wednesday. Interest rates will be determined through bidding, and the principal plus interest will be paid on March 25. Multiple bids at different rates are allowed, with priority given to the lowest rates until the full amount is allotted.

Finance Ministry Reports Rs 129 Billion Revenue Shortfall

In the first half of fiscal year 2025/26, the government spent 46 percent of its total Rs 1.964 trillion budget. While current expenditure reached Rs 482.108 billion, capital spending lagged at just 11.66 percent, totaling Rs 47.54 billion. Revenue collection hit Rs 581.407 billion, missing the mid-year target by Rs 129.8 billion. Despite the shortfall, officials noted a 2 percent growth in revenue compared to last year. Meanwhile, the ministry allocated Rs 6.736 billion for the March 5 elections.

Ministry Stalled Over Rs 2 Billion Cooperative Relief Fund

The Ministry of Land Management, Cooperatives and Poverty Alleviation is in a deadlock with the Ministry of Finance over a revolving fund to repay cooperative victims. While the Cooperative Ministry requested Rs 2 billion to facilitate payments for small savers, the Finance Ministry directed them to manage with the existing Rs 250 million budget allocation. Currently, 23 cooperatives are declared “problematic,” with 74,307 victims claiming Rs 44.889 billion. As of mid-July 2025, only Rs 2.93 billion has been returned. Victims of major cooperatives like Oriental and Kantipur continue to wait for the remaining Rs 40.772 billion.

India Grants INR 8 Billion to Nepal in 2026 Budget

In the Indian Federal Budget presented on Sunday, Indian Finance Minister Nirmala Sitharaman announced an annual grant of INR 8 billion (Rs 12.91 billion) for Nepal. This matches the previous year’s initial allocation. The budget also highlights the Varanasi-Siliguri rail link, which is expected to reduce trade costs for Nepal. Additionally, India removed import duties on 17 cancer drugs and seven rare disease medicines, benefiting Nepali patients seeking treatment across the border. While Nepal received significant support, Bhutan remains the top recipient with a grant of IRN 22.88 billion.

Commercial Bank Asset Quality Shows Signs of Recovery

The financial reports of 20 commercial banks for the second quarter of 2025/26 indicate improving asset quality, with 10 banks successfully reducing their Non-Performing Loans (NPL). Nabil Bank lowered its NPL to 4.25 percent, while Nepal SBI Bank saw a significant drop to 2.64 percent. However, the industry average rose to 4.85 percent due to sharp increases in other institutions. Himalayan Bank reported the highest NPL at 7.96 percent, followed closely by Prabhu Bank at 7.94 percent and Nepal Investment Bank at 7.90 percent. Analysts suggest the overall trend is shifting toward recovery despite these outliers.

Pulse Imports via Birgunj Surge to Rs 7.64 Billion

Food imports through the Birgunj border have seen a significant rise, with seven types of pulses worth Rs 7.64 billion entering the country in the first six months of the current fiscal year. According to the Birgunj Customs Office, this marks a 31 percent increase compared to the same period last year, when imports totaled Rs 5.83 billion. Lentils accounted for the largest share at Rs 3.82 billion, followed by dry beans at Rs 1.17 billion and chickpeas at Rs 1.14 billion. Other imports included dry peas at Rs 270 million.

Korla Border Customs Reports Rs 4.54 Billion Revenue

Heavy snowfall has disrupted operations at the Mustang Customs Office near the Korla border since Tuesday. High-altitude snow reaching 4,650 meters has stranded dozens of containers, including Electric Vehicles (EVs) from China and handicraft exports from Nepal. Despite the weather, the office reported collecting Rs 4.54 billion in revenue as of late January. Since its commercial opening in September 2024, the border has seen the import of 3,329 EVs worth Rs 11 billion, while exports reached Rs 200 million. According to the office, clearing the 14-kilometer road covered in snow will take at least a week.

Nepalgunj Herb Exports Grow 71 Percent to Rs 330 Million

Herb exports through the Nepalgunj border point surged by 71 percent in the first six months of the current fiscal year. The Nepalgunj Customs Office recorded exports worth Rs 331.3 million, up from Rs 193.4 million in the previous year. Key products include timur, cinnamon, and amla sourced from Lumbini, Sudurpashchim, and Karnali provinces. Despite this growth, the region faces a massive trade deficit; imports totaled Rs 37.622 billion, while total exports reached only Rs 1.358 billion. The customs office has collected Rs 9.346 billion in revenue so far.

All 34 Bridges Completed on Rs 17 Billion Narayanghat-Butwal Link

The eastern section of the Narayanghat-Butwal road expansion project has completed all 34 planned bridges. The Narayanghat-Butwal Road Project confirmed that 33 bridges are already operational, with the final Arun River bridge undergoing finishing touches. China State Engineering Construction Corporation is executing the 114-kilometer project, funded by an 85 percent loan from the Asian Development Bank (ADB) at a total cost of Rs 17 billion. While physical progress has reached 76 percent, the overall completion deadline has been extended four times, with the final target set for July 24, due to slow construction pace.

Diesel and Kerosene Prices Rise by Rs 3 Per Liter

The Nepal Oil Corporation (NOC) has increased the prices of diesel and kerosene by Rs 3 per liter, effective from midnight on today. Following the adjustment, diesel will cost Rs 139 per liter in Kathmandu (Category 3). Prices for petrol and LP gas remain unchanged. Conversely, the NOC reduced domestic aviation fuel by Rs 1 per liter and international fuel by USD 7 per kiloliter. These changes follow new rates from the Indian Oil Corporation, where purchase prices rose for diesel and LPG gas but decreased for aviation fuel.

Construction Begins on Rs 25 Billion Lower Seti Hydropower Project

Tanahu Hydropower Limited has initiated the construction of access roads and office facilities for the 126 MW Lower Seti Hydropower Project. Estimated to cost Rs 25 billion, the project utilizes water discharged from the existing 140 MW Tanahu project. A 32-meter-high dam will be built near Saranghat, diverting water through a 6.8-kilometer tunnel to a powerhouse in Devghat. The project is expected to generate 520 million units of electricity annually. Land acquisition is underway across Bandipur, Vyas, and Devghat. Funding includes a USD 3.5 Million grant from the ADB for detailed engineering and design work.

Nagdhunga-Malekhu Road Project Delayed by Three Years

The upgrade of the 38.86-kilometer Nagdhunga-Malekhu section of the Prithvi Highway has achieved only 37.5 percent progress despite the original three-year contract period ending on December 30, 2025. Authorities have granted a 183-day extension after design errors and mapping discrepancies stalled work. The Rs 4.805 billion project, funded by the World Bank and handled by Sharma-ZICG, faced hurdles including tree felling, pole shifting, and high traffic volume. Engineer Bijay Darai noted that while 9 kilometers of blacktopping is complete, significant work remains on bridges and landslide prevention structures.

Parbat Hospital Faces Crisis Over Rs 30 Million Unpaid Insurance

Parbat Provincial Hospital, the district’s primary health facility, is facing a financial crisis due to Rs 30 million in outstanding payments from the Health Insurance Board. The arrears, dating back to the last fiscal year, cover general treatments and dialysis services. According to the hospital’s officials, the lack of funds has hindered the purchase of medicines, equipment, and staff salary payments. Approximately 45 percent of the local population relies on this insurance for care. Despite submitting a memorandum to Health Minister, the hospital continues to struggle to provide laboratory services and essential aid materials to its insured patients.

Surya Kunda Hydro Opens Rs 137.9 Million Lakh IPO

Surya Kunda Hydro Electric Company opened its Initial Public Offering (IPO) on Sunday, seeking to raise Rs 137.9 million. The company is issuing 13,79,350 shares at a face value of Rs 100 per unit, representing 20 percent of its total of some Rs 689.6 million issued capital. Of the total shares, 572,431 units are allocated for the general public, while others are reserved for mutual funds and employees. Investors can apply for a minimum of 10 to a maximum of 50,000 shares until February 4. Kumari Capital is managing the sale through the C-ASBA system.

Gold, Silver Prices Decline

The prices of gold and silver have decreased in the domestic market today. According to the Federation of Gold and Silver Dealers’ Association, the gold price has declined by Rs 18,800 per tola (11.66 grams) today as compared to Friday. The Federation has set the price of gold at Rs 300,000 per tola today. It was traded at 318,800 per tola on Friday. Similarly, the silver price has gone down by Rs 1,565 per tola to reach Rs 5,500. It was traded at Rs 7,065 per tola on Friday. According to the international media, gold is being traded at 4,865 US dollar per ounce and silver at 85 US dollar per ounce.