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:

Revenue from Property Transactions Increases by Rs 2.25 Billion in First Seven Months of FY 2082/83:

Revenue from property transactions in Nepal reached Rs 26.96 billion in the first seven months (Shrawan–Magh) of the current fiscal year 2082/83, up by Rs 2.25 billion or 9.12% compared to Rs 24.71 billion during the same period last year, according to the Department of Land Management and Records. Monthly collections peaked in Poush at Rs 5.17 billion, coinciding with the highest monthly transaction volume of 140,000 deals. Overall, 856,000 property transactions were recorded in seven months, a slight increase of 10,349 transactions or 1.2% over last year, reflecting steady growth in the real estate market and associated revenue collection.

Budget Utilization for Nepal’s National Pride Projects Sluggish in FY 2025/26:

Nepal’s flagship “national pride” infrastructure projects, aimed at driving economic growth and employment, have recorded slow budget utilization in FY 2025/26. Only 15.49% of the Rs. 67.08 billion allocated for 23 ongoing projects was spent by mid-January 2026. Completed projects include the Upper Tamakoshi Hydropower Project, Gautam Buddha International Airport, and Melamchi Drinking Water Project (phase one). Physical progress on highways and expressways varies from 42% to 82%. The Ministry of Finance cites land acquisition, forest-use complexities, inter-agency coordination, and local obstacles as major bottlenecks. DPR completion and resolving land issues are recommended to accelerate implementation and achieve long-term economic and strategic goals.

No Bids for Nepal’s 100 MW Electricity Tender from India; Supply Remains Uncertain:

Nepal Electricity Authority (NEA) faced difficulties managing power demand during the dry season as its tender to buy 100 MW each for February–May from India received no bids. The first tender failed, prompting a second call at the same maximum rate of NPR 6.90 per unit. The new tender allows Indian power companies to supply 25–100 MW per bid, requiring a 5 million rupee deposit. Currently, NEA imports 180 MW at fixed rates from PTC India and up to 664 MW through the Indian energy exchange until March. Despite the tender, securing additional electricity remains uncertain due to high demand in India.

Trade at Northern Border with China to Face Delays Ahead of Election:

Starting February 17 (5 Falgun), trade at Nepal’s northern border with China is expected to face disruptions. The Tibetan New Year (Feb 5–18) will see Chinese workers halt operations, affecting imports. Additionally, Nepal plans to partially close border checkpoints for election preparations from Feb 5–21, impacting crossings at Rasuwa, Tatopani, and other points. Customs authorities indicated that while inspection delays are expected, borders will not be completely closed. China is Nepal’s second-largest trading partner, accounting for 20.87% of imports and 0.45% of exports. Key imports include textiles, fruits, toys, and electronics, while Nepal mainly exports handicrafts, felt, and agricultural products.

Nepal Introduces Differentiated PPA Rates for Reservoir-Based Hydropower Projects:

The government has unveiled a new policy for reservoir-based hydropower projects, introducing differentiated power purchase agreement (PPA) rates. Projects up to 100 MW will have a maximum rate of Rs 14.80 per unit in winter and Rs 8.45 per unit in the monsoon, while rates for projects above 100 MW will be determined based on actual project costs. The Electricity Regulatory Commission (ERC) will set the rates, and the Nepal Electricity Authority will implement them. The directive allows factoring in construction costs, loan interest, foreign exchange risks, and other expenses, with periodic reviews and a three-phase PPA approval process to ensure financial viability.

Over NPR 40 Billion in Foreign Investment Approved in First Seven Months of Fiscal Year:

In the first seven months of the current fiscal year, Nepal approved foreign direct investment (FDI) totaling NPR 40.28 billion across 524 industries, promising employment for 20,896 people, according to the Department of Industry. In the month of Magh alone, 49 industries committed NPR 104.72 million in investment, with 37 through the automated system and 12 via regular procedures. Most FDI approvals are in the IT sector (288 industries, NPR 12.59 billion), followed by tourism (150 industries, NPR 10.86 billion), production (35 industries, NPR 2.4 billion), services (34 industries, NPR 3.54 billion), agriculture (14 industries, NPR 21.9 billion), minerals (2 industries, NPR 11.5 million), and energy (1 industry, NPR 18.42 million).

Proposed Muktinath Cable Car Project May Affect 229 Families and 24,500 Trees:

The draft Environmental Impact Assessment (EIA) for the proposed 81 km Naya Pul–Muktinath cable car, estimated at NPR 5.5 billion, has been published for public consultation. The project, spanning Parbat to Mustang, would affect 229 households and over 24,500 trees across government, community, and conservation forests. Construction would impact 93.6 hectares of forest, 72.66 hectares of barren land, and 41.34 hectares of river area. The cable car, featuring 20 stations, 442 towers, and 871 gondolas, would transport 10,000 passengers daily, requiring 13 MW power and generating wastewater managed by a 30-million-liter treatment plant. Employment for 1,769 during construction and 439 during operations is anticipated.

Nepal Electricity Authority to Launch AI-Based ‘NEA AE Sathi’ for Enhanced Customer Service:

The Nepal Electricity Authority (NEA) is set to implement an AI-driven customer service system, ‘NEA AE Sathi,’ aiming to make services faster, simpler, and technology-friendly. The digital assistant will help consumers access information, register complaints, track bills and meter readings, and receive support via chat-based mobile and online platforms. Developed as part of NEA’s institutional digital transformation, the system emerged from the AI Hackathon 2082, which generated 27 employee-led proposals for improving customer service, administrative workflow, and data analysis. The initiative seeks to enhance service efficiency, reduce employee workload, and provide 24/7 support, establishing a model for AI use in Nepal’s public sector.

270 MW Bheri-1 Hydropower Project Approved for Construction in Jajarkot and Rukum (West):

The 270-megawatt Bheri-1 Hydropower Project will be constructed in Jajarkot and Rukum (West) districts of Karnali Province. The Environmental Impact Assessment (EIA) report by Gajewa Group Power Investment Nepal Pvt. Ltd. was approved last week. The project will operate as a semi-reservoir system with peaking operation, producing electricity during periods of high demand. Estimated construction costs are around NPR 71.97 billion. Key infrastructure includes a dam, powerhouse, tunnel, intake, settling basin, surge tank, and penstock. Power will be supplied to the national grid, and an environmental management plan will mitigate ecological impacts.

Remittances from Nepal Surge 52.66% in First Six Months; Foreign Workers Send Money Home:

In the first six months of FY 082/83, remittances leaving Nepal via formal channels rose 52.66% to NPR 6.98 billion, up from NPR 4.57 billion last year, according to Nepal Rastra Bank. The increase is driven by a growing number of foreign workers in Nepal, with 22,439 receiving labor permits. These workers are allowed to remit 75% of their earnings home, mainly from multinational companies, hydropower projects, banks, and insurance firms. Over the past five and a half years, Nepal has sent out NPR 44.52 billion in remittances abroad. Informal remittance flows are not included in these figures.

Morang Industrial Organization Launches ‘Industries Experience Zone’ to Promote Innovation and Market Access:

Morang Industrial Organization has inaugurated the Industries Experience Zone, alongside a Business Incubation Center and the virtual platform, aiming to boost industrial promotion, innovation, and market expansion. The initiatives were reviewed by a delegation from the Department of Industry, including Director General Jitendra Basnet and Director Vishnumaya Bhattarai, who praised the integrated ecosystem these platforms provide. The Experience Zone offers virtual and physical insights into company profiles, production processes, skills, and potential partnerships, while ViratBazar.com facilitates wider market reach. The platforms also highlight products from startups and women entrepreneurs, creating opportunities for collaboration, learning, and sustainable industrial development in Nepal.

Rapti Handmade Paper Industry Empowers 150 Locals in Dang:

The Rapti Nepali Handmade Paper Industry in Deukhuri, Dang, has created employment for over 150 locals by sourcing raw materials like babiyo from community forests. Operating since March 2023, the factory directly employs 24 workers daily and produces 700–800 quires of handmade paper in five varieties, generating annual sales of Rs. 12.5 million. Products reach markets in Dang, Butwal, Kathmandu, Pokhara, Birgunj, and western Nepal. Despite plans to expand, the operator Damar Bahadur GC has received little government support, with only Rapti Rural Municipality purchasing paper. Local sourcing and entrepreneurship make it a model of rural industrial development.

Election Activity Boosts Nepal’s Revenue Collection; Tax Growth Offset by Falling Interest Income:

Government revenue collection improved ahead of the House of Representatives election on 21 Falgun. In the first seven months of FY 082/83, Nepal collected NPR 665 billion, a 3.45% increase from last year. Customs, VAT, and excise collection rose significantly, while income tax fell 0.81% due to reduced bank interest income. Customs revenue increased 7.53% to NPR 135.32 billion, VAT rose 7.58% to NPR 196.44 billion, and excise grew 10.88% to NPR 105 billion. Education service fees surged 61%. Overall tax revenue increased 5.95% to NPR 599 billion, but non-tax revenue declined. Capital expenditure remains low at 15.62% of the allocated budget.

Bajura Herders Face Voting Dilemma Amid Livestock Migration:

Sheep and goat herders in north-eastern Bajura face a dual challenge ahead of the March 5 parliamentary elections: returning home to vote while managing livestock grazing. During harsh winter months, herders from Himali, Jagannath, Swamikartik Khapar, and Budhinanda Municipalities move flocks to lower regions of Achham and Doti for pasture, returning only in April. With heavy snowfall in the highlands, premature return risks inadequate grazing. Local herders stress that elections in March disrupt their routine, suggesting alternatives in September, April, or May. Across Bajura, around 41,029 sheep and goats are distributed in 673 sheds, highlighting the scale of the issue.

Election Dampens Foreign Tourist Arrivals Ahead of Nepal’s Peak Season:

Nepal’s peak tourism season usually starts in March, with foreign arrivals increasing from February. However, this year, arrivals have yet to pick up as expected due to the upcoming elections on March 5. Many tourists have postponed or canceled trips, causing hotel occupancy in key destinations like Pokhara to fall to around 25%, compared with 50% in previous years at this time. Travel operators report that European trekkers and Indian tourists, who normally arrive during this period, are delaying plans. Officials note that timely government assurances on safety during elections could encourage tourists to maintain their travel schedules.

Sun Koshi-3 Reservoir Project Study Faces Delays as Consultant Selection Process Restarted:

The long-term Sun Koshi-3 reservoir hydropower project, planned under Nepal–Bangladesh energy cooperation, is facing uncertainty as the consultant selection for the Detailed Engineering Study (DES) has been canceled and is being reissued. Initially announced in January 2024, the process has already taken over 25 months without finalization. Despite shortlisted international firms submitting proposals, delays and lack of clarity on Bangladesh’s commitment have slowed progress. The project, originally estimated at 536 MW and later revised to 683 MW, is considered strategically important for Nepal’s energy security. Restarting the RFP process further extends study timelines and complicates investor confidence.

Nepali Banks Rely on Service Fees and Trading Income Amid Low Loan Demand:

Nepali commercial banks are increasingly prioritizing non-interest income from service fees and trading activities. Key revenue sources include debit/credit cards, mobile and internet banking, QR payments, electronic transfers, balance certificates, loans, LC, and bank guarantees. Treasury income from shares, gold, foreign exchange, remittances, and trade finance also contributes. Despite a record deposit growth of NPR 4.04 trillion as of 16 Magh, loan demand remains weak, limiting credit deployment to NPR 1.72 trillion. Excess liquidity has accumulated in the central bank at NPR 8.64 trillion, creating challenges for interest rate management. The average loan-to-deposit ratio stands at 73.97%, below the regulatory cap of 90%.

Nepal Introduces Quality Standards for Rolled Oats and Soya Chunks:

For the first time, the government has set national quality standards for rolled oats and soya chunks, responding to growing demand among health-conscious consumers. The Ministry of Agriculture and Livestock Development published the standards in the Nepal Gazette, covering imported, locally produced, and repackaged products. The standards specify limits on moisture, protein, ash, aflatoxin, and pesticide residues, and prohibit artificial colors, fragrances, and harmful contaminants. Producers must follow proper packaging and labeling rules. Officials say the move ensures consumer safety, protects public health, and promotes uniform quality as the consumption of nutritious, processed foods rises across Nepal.

Norvic International Hospital Reports Over Rs 1.33 Billion in Six-Month Turnover, Marks 20% Growth:

Norvic International Hospital and Medical College achieved a turnover of Rs 1.338 billion in the first six months of the current fiscal year, reflecting a 20% increase compared to the same period last year. Established in 1993 and converted into a public company in 2021, the hospital has steadily grown its operations, with previous annual turnovers of Rs 199.9 million in 2024, Rs 191.1 million in 2023, and Rs 178.5 million in 2022. Located in Thapathali, Kathmandu, the hospital plans to expand from 116 to 275 beds, with ongoing construction already 50% complete, aiming to enhance healthcare services and operational capacity.

Asian Pharmaceuticals Reports Over Rs 2.25 Billion Annual Turnover, 12% Growth:

Asian Pharmaceuticals achieved a turnover of Rs 2.253 billion in the current fiscal year, up from Rs 2.263 billion in the previous year, marking a 12% growth with a 16% operating profit. Established in 1997, the company produces a wide range of medicines, including antibiotics, gastro-intestinal, orthopedic, painkillers, asthma, anti-allergic, and vitamins, catering to the Nepali market. Chaired by Hutananda Khanal and managed by Executive Director Shankar Ghimire, the company has a shareholding structure led by Khagisara Ghimire (10.3%), with the rest held by 21 others. The company has a total credit rating of Rs 1.865 billion for long-term and short-term borrowings.

BP Highway Road Repairs Underway, But Bridge Construction Delayed:

Repair work on the BP Highway, damaged by floods in September 2024 floods, has started, but bridge construction along the route remains pending. Traffic bottlenecks persist at single-lane bridges, where over 4,000 vehicles travel daily. While preliminary studies for new bridges at Bhakunde Besi, Dapcha, Roshi, and Narke are underway, actual construction is unlikely in the current fiscal year. Road contracts are progressing separately, with multiple sections under different joint ventures. Bridges will eventually be upgraded to two lanes, but delays in securing bridge contracts and reliance on external funding, including JICA support, are slowing overall progress.

ACAP Transports Over 4 Tonnes of Waste from Mustang in Six Months:

Over the past six months, the Annapurna Conservation Area Project (ACAP) Jomsom has transported 4,391 kilograms of waste from Mustang’s Waragung Muktikshetra, Gharpajhong, and Thasang rural municipalities to Pokhara for recycling. The initiative aims to keep the Himalayan district clean and environmentally friendly. Non-biodegradable plastic waste is processed at Green Waste Management Pvt Ltd. ACAP manages transportation costs and has also allocated Rs 500,000 to each municipality for waste management infrastructure, including collection centers and vehicles. Last fiscal year, ACAP transported 10,190 kg of waste, highlighting ongoing efforts to maintain cleanliness for tourists and residents alike.

Gold Price Jumps Rs 2,300 per Tola, Silver Dips Slightly:

On Sunday, the first trading day of the week, domestic gold prices surged while silver edged lower. The Federation of Nepal Gold and Silver Dealers’ Association reported that fine gold rose by Rs 2,300 per tola (11.663 grams), reaching Rs 305,800 per tola, up from Rs 303,500 on Friday. In contrast, silver experienced a modest decline, falling Rs 15 per tola from Rs 5,000 to Rs 4,985 per tola. Traders attribute the rise in gold prices to continued demand and market trends, while silver’s small drop reflects minor fluctuations in investor preference and trading patterns.