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:

Life Insurance Companies Shift Rs 42 Billion to Share Market

Life insurance companies in the country have aggressively increased their investments in the secondary market, reaching Rs 42.403 billion by the second quarter of the current fiscal year. This marks a 64.54% increase compared to last year’s Rs 25.77 billion. The shift occurred as commercial bank interest rates on fixed deposits plummeted to below 3%. Himalayan Life Insurance led the sector with an investment of Rs 12.475 billion, followed by Nepal Life at Rs 6.569 billion. Conversely, the government-owned National Life Insurance Company reduced its stock market exposure by 73.07%.

EC Offers Prize Money to Encourage Voters Through TikTok Competition

The Election Commission (EC) is encouraging citizens to create TikTok videos to foster a vibrant atmosphere for the House of Representatives election on March 5. The Commission will award Rs 50,000 for the most-viewed video, while the second- and third-place winners will receive Rs 30,000 and Rs 20,000, respectively. Participants must submit one-minute videos focusing on voter education and election codes of conduct until March 1. This initiative leverages social media to engage youth and ensure a civilized electoral process. The Commission retains rights to use the winning content for official publicity.

Finance Minister Commits Full Resources for Elections

Finance Minister Rameshore Khanal committed to providing all necessary resources to ensure the successful completion of the upcoming elections during the Nepal Tourism Seminar in Kathmandu. He emphasized that the government’s primary focus is the polls, identifying the move away from political instability as a major challenge. The minister acknowledged that previous commitments to treat the tourism sector as an industry have not been fully realized but stated that the government is working on various policy interventions. He reiterated that efforts are being made to uplift the national economy through strategic policy work even as the state machinery prioritizes the electoral process.

Foreign Trade Reaches Rs 13 Billion in Seven Months

The country’s foreign trade surged to approximately Rs 13 billion (Rs 12.916 billion) during the first seven months of the fiscal year 2025/26. According to the Department of Customs, this represents a 15.76% increase compared to the same period last year. Imports rose by 13.65% to Rs 11.234 billion, while exports saw a significant 32.19% growth, reaching Rs 1.681 billion. Officials noted that trade activity spiked in January, likely driven by the upcoming House of Representatives elections. Despite the overall growth, the trade deficit increased by 10.91% to Rs 9.553 billion.

Export Growth Improves Country’s Import-Export Ratio

Significant growth in exports has improved the country’s trade balance ratio during the first seven months of the current fiscal year. While the country imported Rs 7.77 worth of goods for every Rs 1 exported last year, that ratio has now dropped to 6.68. The export share in total trade increased from 11.40% to 13.02%, while the import share decreased slightly to 86.98%. The Department of Customs reported that exports reached Rs 168.145 billion by mid-February, a sharp rise from Rs 127.204 billion in the previous year. This shift indicates a positive trend in domestic production and international trade.

EV Imports Reach More than Rs 13 Billion in Seven Months

The country imported electric vehicles worth Rs 13.847 billion during the first seven months of the current fiscal year. According to the Department of Customs, a total of 5,894 units of electric cars, jeeps, and vans entered the country between July 17, 2025, and February 12. This trade generated Rs 8.46 billion in revenue for the government. China dominated the market, accounting for over 71% of total imports with 4,204 units valued at Rs 9.9 billion. India followed as the second-largest supplier with 1,263 units worth Rs 2.65 billion, while Thailand supplied 401 units.

Political Parties Prioritize Energy in Election Manifestos

Major political parties have placed the energy sector at the center of their election manifestos, viewing it as the primary driver for economic prosperity. The Nepali Congress aims to reach 14,000 megawatts of capacity and 750 units of per capita consumption within five years. Meanwhile, the CPN (UML) plans to develop Nepal as a clean energy hub for South Asia, doubling current consumption levels. Other parties, including the CPN (Maoist Centre) and Rastriya Swatantra Party, have set ambitious long-term goals of up to 40,000 megawatts by 2100. Common themes across manifestos include policy reform, cross-border energy diplomacy, and encouraging private investment.

Insurance Firms Increase Equity Investments Amid Low Interest Rates

Thirteen life insurance companies have significantly ramped up their presence in the stock market to maximize returns for policyholders. SuryaJyoti Life saw its investment grow by 100.23% to Rs 4.641 billion, while Sanima Reliance Life recorded a staggering 175.19% increase. Other notable investors include Life Insurance Corporation with Rs 3.116 billion and IME Life with Rs 2.562 billion. Experts suggest that companies are moving away from traditional fixed deposits as banks remain hesitant to accept large institutional deposits at competitive rates. MetLife Insurance remains the only firm with zero investment in listed shares.

Health Minister Promises Funds for KAHS Infrastructure

During a visit to Jumla on February 12, Health Minister Dr Sudha Sharma Gautam assured that budget shortages would not halt the development of the Karnali Academy of Health Sciences (KAHS). She pledged to prioritize the stalled Rs 6 billion infrastructure project in the upcoming budget and request the Ministry of Physical Infrastructure to build a 6-kilometer access road to Chere Chaur. However, officials remain skeptical, noting that previous ministerial promises went unfulfilled. The academy currently hosts over 500 staff and students across 12 educational programs, including MBBS and MD, all struggling with a severe lack of residential and academic space.

Labor Ministry Issues Procedures for Workplace-Based Training

The Ministry of Labour, Employment and Social Security has issued new procedures for workplace-based training to bridge the skill gap in the domestic labor market. Under the National Vocational Training Institute Development Committee Order 2024, basic training will range from 390 to 730 hours. The policy mandates that employers provide guaranteed employment following training; for instance, a one-month training requires a two-month job commitment. The Institute will cover minimum wages and Social Security Fund contributions during the training period. This initiative aims to supply skilled manpower to industries while ensuring stable employment opportunities for the Nepali workforce.

Rs 6 Billion Infrastructure Project at KAHS Remains Stalled

A multi-year master plan to build 26 faculty buildings for the Karnali Academy of Health Sciences remains stalled due to a lack of funding. Although a detailed project report for the Rs 6.29 billion project at Chere Chaur Chandannath municipality of the Jumla district was prepared nine years ago, only one basic science building and an administrative block have been completed for Rs 760 million. The academy, which serves 13 districts including those in Sudurpashchim, is currently forced to conduct classes in rented houses. Registrar Laxmi Chandra Mahat noted that while local donors provided 254366.41 square meters of land, successive governments have failed to prioritize the necessary budget for this health tourism hub.

Budget Secured for Rara Lake Access Road

The Ministry of Physical Infrastructure and Transport has secured a budget of Rs 910 million to blacktop the 15-kilometer road section from Baluwa Khola to Diyaragaun. This route serves as the primary gateway to Rara Lake, a premier tourist destination in Mugu. Shrawan Kumar Mahatara, Chief of Road Division Jumla, credited the funding to the initiatives of Infrastructure Minister Madhav Chaulagain and former lawmaker Gyanendra Bahadur Shahi. Despite operating since the fiscal year 2012/13, the 93-kilometer Nagma-Gamgadhi road remained largely unpaved. This new multi-year project aims to facilitate tourism and economic development by replacing muddy and dusty tracks with high-quality asphalt.

Maldhunga-Beni Road Upgrade Completed

The 13-kilometer Maldhunga-Beni road, connecting Myagdi and Mustang to the national highway, has been upgraded to a two-lane asphalt road. Part of the Kaligandaki Corridor project, the Rs 528.6 million contract with Apex-Khadka-Krishna JV resulted in an 11-meter-wide road. Project Chief Tejaswi Sharma confirmed that most sections are complete, excluding small portions in Waribeni and landslide-prone areas. The upgrade has significantly reduced the travel time between Maldhunga and Beni from one hour to just 15 to 20 minutes. This improvement is expected to ease the journey for thousands of pilgrims and tourists traveling to the Muktinath temple.

Nepalgunj Customs Collects Over Rs 11 Billion Revenue

The Nepalgunj Customs Office, Banke District, collected Rs 11.046 billion in revenue during the first seven months of the current fiscal year 2025/26. Office Chief Janardan Paudel noted that while collection increased by Rs 92.4 million compared to the same period last year, the office has only reached 45% of its annual target of Rs 24.545 billion. Monthly targets were missed throughout the period, with collection rates ranging from 69% to 88%. Despite the operation of the Integrated Check Post at the Jamunaha border, a high trade deficit remains a significant concern.

Mustang Tourist Arrivals Reach 325K in Seven Months

A total of 325,558 tourists visited Mustang during the first seven months of the current fiscal year. According to Inspector Nawaraj Neupane, this includes 69,814 foreign and 252,664 domestic visitors. While numbers remain high, there is a 5.33% decrease compared to the same period last year. Most visitors entered via the Beni-Jomsom road, with mid-October and mid-November recording the highest traffic of 83,766 and 75,599, respectively. The data shows that while most Indian tourists visit for Muktinath darshan, approximately 3% of foreign tourists explore Upper Mustang. Improved road connectivity continues to be the primary driver for the district’s tourism.

Sauraha Hotel Occupancy Drops to 50% in Peak Season

Hotel occupancy in Sauraha, Chitwan District, a major tourist hub, has fallen to 50% during the peak months of February, March, and April. Historically, hotels in the region remained 80% full during this period, which is ideal for wildlife sightings in Chitwan National Park. Om Prakash Pandey, President of the Regional Hotel Association Chitwan, expressed concern over the unexpected decline in foreign arrivals. Business owners believe the upcoming election on March 5 has deterred international travelers. Currently, 148 hotels in Sauraha provide direct employment to 6,400 people, but the lack of tourists is severely impacting local livelihoods and related businesses like elephant safaris.

Ujjwal Rai to Lead World AI Alliance From New York

Nepali tech entrepreneur and government advisor Ujjwal Rai has been appointed as the founding president of the World AI Alliance in New York City. The appointment, announced during the 70th anniversary of artificial intelligence (AI), is hailed as a milestone for Nepal’s ICT sector. Rai, who previously led Nepal’s national AI policy and 30-year IT roadmap, will lead global efforts in ethical AI governance and transparent data sets. The leadership team also includes Nepali expert Suyog Parajuli as general secretary. The alliance aims to foster international collaboration, open-source infrastructure for health and education, and the development of the next generation of AI leaders.

Gold Price Remains Stable, Silver Drops to Rs 5,050

The price of gold remained stable in the market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold remains unchanged and is being traded at Rs 304,700 per tola (11.66 grams) today. Similarly, the price of silver has decreased today. According to the Federation, silver has decreased by Rs 10 per tola and is being traded at Rs 5,050.