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 10.25 Points with Rs 8.616 Billion Turnover

On Tuesday, the Nepal Stock Exchange (NEPSE) decreased by 10.25 points (0.38 percent), closing at 2,662.14. The Sensitive Index fell by 1.26 points to 454.39. Daily turnover reached Rs 8.616 billion from 21,715,868 shares in 89,834 transactions across 324 companies. This marks a third consecutive decline following drops on Sunday and Monday. Out of 13 groups, 11 declined, including commercial banks and life insurance, while mutual funds and trading rose. Prices for 74 companies increased, 179 decreased, and seven remained stable.

Finance Ministry Slashes Annual Capital Expenditure Forecast

The Ministry of Finance, led by Finance Minister Rameshore Khanal, has lowered the estimated capital expenditure for the current year by approximately 21%. Originally, Rs 407 billion was budgeted for capital spending, but the mid-year review now projects only Rs 319 billion will be utilized. Total budget spending is also expected to be lower than initially planned. While Rs 1.180 trillion was allocated for current expenditure, the revised estimate suggests it could reach Rs 1.225 trillion. For financial management, the revised spending is projected at Rs 318 billion, down from the initial allocation of Rs 375 billion.

Commercial Bank Lending Rate Drops to 7.12% as NRB Absorbs Rs 28.699 Trillion

The average lending rate of commercial banks in Nepal has fallen to 7.12%, down from 8.69% a year ago. According to the Ministry of Finance, the weighted average deposit rate has also decreased to 3.56%. Despite cheaper credit, loan demand remains sluggish. In the first six months of the fiscal year (July 17, 2025, to January 14, 2026), deposits grew by Rs 417.48 billion to reach a total of Rs 7.681 trillion. However, private sector credit expanded by only Rs 197.47 billion. To manage this excess liquidity, Nepal Rastra Bank (NRB) has absorbed Rs 28.699 trillion from the market.

Govt. Reduces Total Budget Size by 14.04%

Finance Minister Rameshore Khanal has revised the total budget size down to Rs 1.688 trillion following a mid-term review. This represents a 14.04% reduction from the original Rs 1.964 trillion budget introduced by former Finance Minister Bishnu Paudel. The revised estimates allocate Rs 1.125 trillion for current expenditure, Rs 243.30 billion for capital expenditure, and Rs 319.4 billion for financial management. The downsizing is based on the actual revenue collection and spending patterns observed during the first six months of the current fiscal year (July 17, 2025, to January 14, 2026).

Nepal Scores 34 in 2025 Corruption Perceptions Index

Nepal maintained a score of 34 out of 100 in the Corruption Perceptions Index (CPI) 2025 released by Transparency International Nepal. Ranking among the weaker nations for transparency, Nepal’s score suggests no significant improvement in corruption control. In South Asia, Bhutan leads with 71 points, while India and the Maldives both scored 39. The report attributes Nepal’s stagnation to political instability, weak governance, and impunity. Madan Krishna Sharma, president of Transparency International Nepal, noted that despite Gen Z and youth protests against corruption, solid policy reforms are still lacking in public service delivery, procurement, and the judicial process.

World Bank Approves $50 Million for Digital Nepal

The World Bank Executive Board of Directors has approved USD 50 million for the Nepal Digital Transformation Project. This initiative aims to strengthen digital public infrastructure and improve the delivery of public services. Key investments include an integrated online citizen portal, a digital locker for verified certificates, and a secure data-sharing system. To boost digital economy trust, the project will also fund electronic signatures (e-signatures) and cybersecurity. This project is a joint effort with the Asian Development Bank (ADB), which is expected to contribute an additional USD 40 million following its board approval in March.

Capital Expenditure Hits Only 12.12% in Mid-Year Review

The Ministry of Finance reported that only Rs 690.78 billion of the total Rs 1.964 trillion budget was spent during the first half of fiscal year 2025/26. Capital expenditure was particularly low at 12.12%, while current expenditure reached 41.25%. The ministry attributed the slow pace of capital spending to a lack of project preparation, land acquisition hurdles, and forest clearance complexities. Additionally, infrastructure damage caused by protests on September 8 and 9, 2025, further hindered progress. The government faces significant pressure to accelerate spending to meet its annual economic targets.

Financial Progress of National Pride Projects Languishes at 15.49%

A mid-year evaluation by the Ministry of Finance reveals that financial progress for Nepal’s 23 active National Pride Projects is just 15.49%. Of the Rs 67.86 billion allocated for the current fiscal year 2025/26, only Rs 10.393 billion was spent by mid-January. While the Mid-Hill Highway has reached 81.73% physical completion, the Kathmandu-Terai Fast Track remains at 42.13%. Issues such as compensation disputes, legal hurdles in forest use, and frequent transfers of project chiefs continue to delay these strategic initiatives. The ministry recommends completing Detailed Project Reports (DPR) before tendering future works.

Remittance Surges 39.1% to Over Rs 1 Trillion

The country’s external economic sector shows robust growth as remittance inflows jumped 39.1% to reach Rs 1.62 trillion in the first half of the fiscal year. The Ministry of Finance reports that foreign exchange reserves have hit USD 22.47 billion, ensuring a strong balance of payments surplus of Rs 501.24 billion. Meanwhile, internal indicators show average consumer inflation has dropped to 1.7%. Despite strong external stability, the ministry projects a moderate 3.0% economic growth for the first quarter. While the industrial sector expanded by 5.44%, agricultural growth slowed to 1.36% due to decreased paddy production.

Post-Gen Z Protest Study Reveals Rs 34 Billion Physical Loss

A study by Chanakya Media titled ‘Investor Confidence and Business Environment after the Gen Z Protest’ reveals that the protests on September 8 and 9, 2025, caused physical damages worth Rs 34 billion. The survey of 121 entrepreneurs found that private sector morale is at an all-time low, with 97% of respondents stating the investment climate has weakened. According to the report, 70% of investors have adopted a “wait and see” approach, while 8% have canceled expansion plans. Despite a government relief package, businesses remain traumatized by the targeted attacks on private property fueled by misinformation and negative narratives against wealth creators.

Everest Sugar Mill Begins Paying Sugarcane Farmers

Everest Sugar Mill in Mahottari has started distributing payments to sugarcane farmers for the 2025/26 crushing season. Following its policy of paying within 7 days of purchase, the mill is depositing Rs 620 per quintal into farmers’ accounts, an increase of Rs 25 from last year. As of Monday, the mill has crushed over 1.8 million quintals of sugarcane. Financial General Manager Bimal Chandra Thakur confirmed that Rs 935.5 million has already been paid for some 1.6 million quintals purchased by February 3. Farmers have expressed relief over the regular payment system, which provides financial stability despite dissatisfaction with government pricing.

Valentine’s Day Rose Trade Expected to Hit Rs 5 Crore 62 Lakh

The country is expected to consume 450,000 stems of roses, valued at Rs 56.2 million, for the upcoming Valentine’s Day on Saturday, February 14. The Floriculture Association Nepal (FAN) reported that while demand has increased, local production in 41 districts, including Kathmandu, Lalitpur, and Kavre, can only meet 30% of the requirement. Consequently, 70% of the roses will be imported from neighboring countries. Prices are projected to range between Rs 100 and Rs 150 per stem. Additionally, FAN announced the 27th Flora Expo will take place at Bhrikutimandap, Kathmandu, from March 19 to March 22 to promote the industry.

Election Commission Announces TikTok Video Competition

The Election Commission of Nepal has launched a TikTok video competition to promote voter education and awareness for the upcoming election on March 5. Participants are invited to create one-minute videos focusing on election campaigning, the code of conduct, and voter education. The commission will award Rs 50,000 for first place, Rs 30,000 for second, and Rs 20,000 for third, based primarily on view counts. Contestants must upload their videos to TikTok, YouTube, and Facebook and submit the links via email to [email protected] between February 15 and March 1.

Health Insurance Board Orders Hospitals to Use Minimum Rates

The Health Insurance Board has directed all partner hospitals to submit claims using the minimum available rates for medicines and services starting February 13. Information Officer Bikesh Malla of the board stated that if a hospital’s internal rate is lower than the board’s official rate, the hospital must claim the lower amount. Conversely, if the hospital’s rate is higher, the board’s rate will apply. This move aims to ensure financial balance and reduce unnecessary claims for medical, surgical, laboratory, and radiological services. The board previously urged service users to avoid unnecessary diagnostic tests to help maintain the long-term sustainability of the national insurance fund.

Tanahun Service Office Collects Rs 4.6 Million Revenue

The Tanahun Integrated Service Office in Tanahun collected Rs 4.6 million in revenue during the first six months of the Fiscal Year 2025/26. Office Chief Ishwari Prasad Regmi reported that 335 new businesses were registered between July 17, 2025, and January 14, 2026, comprising 180 industries and 153 commercial firms. Additionally, 1,023 industries and 988 commercial firms renewed their licenses, while 108 industrial and 108 commercial registrations were canceled. Monthly revenue peaked in mid-January at Rs 925,000. The office, which oversees tourism and industrial growth, continues to facilitate regulatory compliance for local entrepreneurs.

300-Bed Sanjeevani Teaching Hospital to Open in Dang

The privately funded Sanjeevani Institute of Advance Studies and Teaching Hospital in Ghorahi-3, Dang, is set to begin operations on February 11. The 300-bed multidisciplinary facility will provide 24-hour specialist services, including emergency care capable of handling 500 patients during mass casualties. CEO Deepak Roka stated the hospital features advanced technology like MRI, CT scans, and a catheterization lab. Led by Chairman Khuma Prasad Aryal, the project has created 350 jobs and aims to expand to 500 beds within three years. Future plans include launching MBBS and BDS programs to serve residents of Lumbini and Karnali provinces locally.

KMC Grants Rs 10 Million to Kirtipur Hospital

Kathmandu Metropolitan City (KMC) signed an agreement to provide Rs 10 million to Kirtipur Hospital for medical equipment. Signed by Health Department Chief Dipak Kumar KC and Chairperson Dr. Bharat Kumar Pradhan Shrestha, the grant funds one anesthesia machine, one 250 KVA generator, and one 500 MA digital X-ray machine. Acting Mayor Sunita Dangol stated the support aims to enhance high-quality, accessible treatment, including burn care. The nonprofit hospital expects continued cooperation for complex treatments. The agreement was concluded on Tuesday, 2026, in the presence of Chief Administrative Officer Saroj Guragain and Coordinator Chini Kaji Maharjan.

Food Quality Office to Sue 19 Businesses for Adulteration

The Food Technology and Quality Control Office in Hetauda is preparing to file lawsuits against 19 businesses for food adulteration and quality violations. Office Chief Binita Pokharel stated that investigations are underway under the Food Hygiene and Quality Act following samples collected during the current fiscal year 2025/26 [2082/83]. Adulterated items and expired goods worth Rs 102,265 were recently seized and destroyed. Despite delays caused by the Gen Z protests, the office expects to file cases in district courts shortly. So far this year, the office has monitored 121 markets and collected Rs 1 million in revenue.

Winter Drought Cuts Nepal’s Hydropower Output

The country’s hydropower production has dropped to minimum levels due to a lack of winter rain and snowmelt. Nepal Electricity Authority (NEA) Executive Director Hitendra Dev Shakya warned that the decline in river flow, particularly affecting Run-of-River (RoR) projects, makes energy supply challenging for February and March. Despite adding 400 megawatts of capacity this year, the peak demand has risen to 2,051 megawatts. To manage the deficit, NEA is currently importing an average of 419 megawatts from India at approximately INR 3.50 per unit. NEA spokesperson Rajan Dhakal noted that total energy imports remain lower than last year, which is a positive sign for the system.

Over 1,300 Nepali Caregivers Enter Israel

As security concerns in Israel ease, 1,300 Nepali youth out of a roster of 2,112 selected caregivers have entered the country as of January 29. The Department of Foreign Employment (DoFE) reported that an additional 750 individuals are currently in the process of signing labor contracts. Among them, 84 are scheduled to fly shortly. These workers are being deployed to various long-term care centers and hospitals (Beit Avot). Israel remains an attractive destination due to high wages, and the government has signaled plans to increase the annual quota for Nepali workers and potentially open recruitment for the agricultural sector in the near future.

US Court Clears Way for Deportation of Nepali TPS Holders

A United States appeals court has cleared the way for the potential deportation of immigrants from Nepal, Honduras, and Nicaragua by lifting a previous stay on the termination of their Temporary Protected Status (TPS). The 9th Circuit Court of Appeals ruled that the government can proceed with ending the legal protection while appeals continue. Approximately 7,000 Nepalis received TPS following the 2015 earthquake. Homeland Security Secretary Kristi Noem stated that TPS was never designed as a permanent program. While US presidents historically renewed these protections, the current administration maintains that conditions in the home countries have improved sufficiently for safe return.

Bhujung Hydropower IPO Allotted via Lottery System

The Initial Public Offering (IPO) of Bhujung Hydropower Company was allotted on Tuesday at Kumari Capital. Due to high demand, the shares were distributed via a lottery, with 83,000 applicants receiving 10 units each. The company had issued 830,000 shares at Rs 100 per unit from January 26 to January 29. Out of over 2.5 million applicants, 2,539,892 applications were approved, while 40,028 were rejected. Results can be accessed through the websites of Bhujung Hydropower, Kumari Capital, Mero Share, and the CDSC portal. The project is a significant addition to Nepal’s growing private sector energy portfolio.

Slight Increase in Gold, Silver Prices

The price of gold and silver has slightly increased in the domestic market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has increased by Rs 900 per tola (11.66 grams) and is being traded at Rs 305,500 per tola today. It was Rs 304,600 per tola on Monday. Similarly, the Federation has set the price of silver at Rs 5,240 per tola today against Rs 5,250 per tola on Monday. According to the international media, gold is being traded at USD 5,029 per ounce and silver at USD 81 per ounce in the international market today.