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 Declines 8.16 Points

The Nepal Stock Exchange (NEPSE) index closed at 2,662.91 on Monday, marking a decrease of 8.16 points. Despite the dip, market activity remained robust with a total turnover of Rs 7.94 billion. Over 19.6 million shares were exchanged among 335 companies. While the majority of sub-indices, including hydropower and insurance, trended downward, the finance and hotel sectors managed slight gains. Redi Power Company recorded the highest individual turnover of Rs 65.3 million, while investors in Salpa Bikas Bank saw their shares hit the positive circuit limit.

NRB Proposes 5% Overdraft Limit for Fiscal Support

The Nepal Rastra Bank (NRB) has drafted legislation to allow a six-month overdraft facility for the government to manage temporary liquidity shortages. According to the proposal sent to the Ministry of Finance, this credit must not exceed 5% of the preceding year’s revenue. The draft also modernizes the Nepal Rastra Bank Act, 2002, by introducing legal frameworks for digital currency and digital banking. To enhance governance and reduce external influence, the central bank recommends expanding its board to include 5 non-executive independent directors, ensuring a more transparent and autonomous decision-making structure.

Fuel Prices Adjusted Upward by up to Rs 3

The Nepal Oil Corporation (NOC) implemented a price revision for petroleum products on Monday. Petrol increased by Rs 1 per liter, while diesel and kerosene rose by Rs 3 per liter. Following this update, petrol is priced at Rs 156 in Kathmandu and Pokhara and Rs 153.50 in Biratnagar and Birgunj. Kerosene now costs Rs 142 per liter across the country. The corporation stated that these adjustments were made in accordance with the international market rates and the existing automatic pricing mechanism used to maintain domestic fuel supplies.

Banking Sector Records 20.9 Million Mobile Users

Nepal’s transition to digital finance has reached a milestone, with mobile banking users totaling nearly 20.9 million as of mid-January. Data from the Nepal Rastra Bank (NRB) shows that digital access now covers a significant portion of the population. The total number of deposit accounts has reached 61,779,872, while loan accounts stand at over 2 million. With 13.9 million ATM cards in circulation and a network of 6,511 branches, the financial sector is becoming increasingly accessible. This growth reflects a broader national trend toward utilizing technology for secure and efficient financial management.

NRB to Deposit Rs 9.35 Billion in Private Banks

The Nepal Rastra Bank (NRB) has invited applications from financial institutions to host Rs 9.35 billion in fixed deposits from its pension and gratuity fund. The investment, set for one year, includes Rs 7.48 billion for commercial banks, Rs 1.40 billion for development banks, and Rs 467.5 million for finance companies. To participate, banks must meet strict criteria, including a non-performing loan ratio below 8% and maintained capital adequacy. This periodic fund allocation helps the central bank manage its long-term liabilities while supporting the liquidity needs of the broader Nepali banking and financial industry.

Central Bank Cautions Three Lenders Over Compliance

In a move to strengthen financial oversight, the Nepal Rastra Bank (NRB) has penalized NIC Asia Bank, Global IME Bank, and Nepal Investment Mega Bank for various regulatory breaches. During the second quarter of fiscal year 2025/26, NIC Asia was fined Rs 400,000 total for leadership failures in reporting. Meanwhile, executives at the other two institutions received formal warnings for issues related to loan loss provisioning and interest rate spreads. The central bank emphasized that strict adherence to integrated directives is essential for maintaining public trust and ensuring the long-term stability of the national banking system.

Property Deals Hit 50,837 as Revenue Reaches Rs 5 Billion

Real estate activity remained stable in mid-January/mid-February, with 50,837 transactions recorded across Nepal. While this is a slight decrease of 1,000 deals compared to Poush, the Department of Land Management and Archive noted that the market remains resilient. Total revenue from registration fees and capital gains reached Rs 5 billion, down slightly from the previous month’s Rs 5.17 billion. Industry specialists anticipate a surge in property trading following the conclusion of the upcoming House of Representatives elections scheduled for next month.

Tumblingtar Airport Resumes Flights After 10-Day Haze

Haze-related visibility issues that grounded flights at Tumlingtar Airport for 10 days finally cleared on Monday. The Civil Aviation Office confirmed that improved atmospheric conditions allowed for the resumption of scheduled services to Kathmandu. The prolonged closure had disrupted travel for hundreds of residents in the mountainous region. With the airport now operational, private carriers have cleared the backlog of passengers. Authorities noted that such weather-related delays highlight the need for improved navigational technology to ensure more consistent flight schedules during the winter months when atmospheric haze is common in the region.

Finance Ministry Reports Rs 53 Billion in Customs Relief

During the first six months of the current fiscal year, the Ministry of Finance provided customs and tax waivers totaling Rs 53 billion. These exemptions applied to imports valued at Rs 408 billion, supporting sectors ranging from diplomatic missions to large-scale infrastructure projects. Approximately Rs 14.97 billion was granted to development projects to facilitate the import of essential machinery and materials. While these incentives aim to stimulate economic growth and investment, the high volume of “tax expenditures” continues to be a point of discussion regarding the balance between industrial support and national revenue collection.

Green Vegetable Prices Crash by up to 77.27%

Market data from the Kalimati Fruits and Vegetable Market Development Committee indicates a significant price drop for seasonal produce over the last 30 days. Between January 15 and February 15, cauliflower prices fell most sharply, with Terai varieties dropping 77.27% from Rs 88 to Rs 20 per kg. Local cauliflower followed with a decrease from Rs 96 to Rs 22. Leafy greens, including spinach and mustard greens, also became more affordable, with prices declining by over 60%. Increased seasonal supply in wholesale markets is credited for this shift, providing major financial relief to households.

Gold Prices Retrace by Rs 3,000 per Tola

Following a recent surge, the price of gold in the domestic market decreased by Rs 3,000 on Monday. The Federation of Nepal Gold and Silver Dealers’ Association fixed the price of fine gold at Rs 302,800 per tola (11.66 grams), down from Sunday’s peak of Rs 305,800. Silver also saw a price reduction of Rs 125, settling at Rs 4,860 per tola. This local trend mirrors shifts in international markets, where gold is currently trading at approximately USD 5,025 per ounce. Local jewelers noted that price fluctuations remain common due to ongoing global economic uncertainties and currency variations.