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:

Nepal and Portugal Agree on New Trade Cooperation

The first meeting of the Nepal-Portugal Bilateral Consultation Mechanism concluded in Lisbon. Led by Foreign Secretary Amrit Bahadur Rai and Portuguese Secretary Dr Ana Isabel Xavier, the two nations agreed to enhance cooperation in trade, investment, and tourism. Nepal requested assistance in facilitating document attestation for the Nepali community in Portugal and proposed establishing a Portuguese embassy in Kathmandu. Secretary Rai also encouraged Portuguese firms to invest in Nepal’s renewable energy sector through the Investment Board. Dr Xavier praised the Nepali community’s contribution to the Portuguese economy as both sides reviewed multilateral issues like climate change.

NEA Conducted Scheduled Power Cuts Across Kathmandu Today

The Nepal Electricity Authority (NEA) conducted scheduled power outages across several Kathmandu neighborhoods on Saturday. Under the Baneshwor Distribution Center, electricity was disconnected in Sinamangal and Tilganga for three hours to manage a leaning utility pole. Simultaneously, the Maharajgunj Distribution Center cut power for up to five hours in Baluwatar, Banshidhara, and Hapali Height to facilitate the underground cabling project. These maintenance works were part of the capital’s distribution system consolidation initiative. The NEA apologized for the inconvenience caused to residents and businesses in the central and northern regions of the city during the afternoon hours.

Govt. to Shut Down Unregistered E-Commerce Platforms

The Ministry of Industry, Commerce, and Supplies finalized the Electronic Commerce Directive, 2026, mandating that all online businesses must register or face closure. According to the new rules released this week, unregistered firms will be given seven days to comply before the Department of Commerce shuts down their platforms. The directive requires all e-commerce entities to fulfill tax obligations and issue electronic invoices for all transactions. Furthermore, businesses must use Nepal Rastra Bank-approved payment gateways and keep encrypted records of sensitive customer data for five years. A dedicated dispute resolution committee will also be established to handle consumer complaints.

Consultancy Exports Earn Rs 21.9 Billion, Net Gains Rs 19.08 Billion

Professional consultancy services are emerging as a key foreign exchange source. In the first six months of fiscal year 2025/26, Nepal earned Rs 21.9 billion from IT, engineering, management, environmental, accounting, and other consultancy exports, up 24.5% from last year. Imports of consultancy services totaled Rs 2.82 billion, yielding net earnings of Rs 19.08 billion. Ram Sharan Kharel of Nepal Rastra Bank credits government policy support for this growth. Institute of Chartered Accountants of Nepal President Nil Bahadur Saru Magar said the country has strong potential to retain skilled professionals while exporting services. The government targets IT service exports of Rs 30 trillion over the next 10 years.

Trade Surges on Strong Exports

Foreign trade grew 15.76% in the first seven months of fiscal year 2025/26, reaching Rs 1291.63 billion, up from Rs 1,115.79 billion last year. Imports rose 13.65% to Rs 1,123.48 billion, while exports jumped 32.19% to Rs 168.14 billion. Refined soybean oil led exports at Rs 66.78 billion, and crude soybean oil topped imports at Rs 70.99 billion, followed by diesel (Rs 69.91 billion) and petrol (Rs 38.13 billion). The trade deficit widened 10.91% to Rs 955.34 billion. The fiscal year 2024/25 saw exports surge 81.8% to Rs 277.03 billion, boosted by refined edible oil shipments benefiting from India’s tariff adjustments.

Country Imports Rs 93 Billion in Raw Edible Oil

During the first seven months of the current fiscal year, the country imported raw edible oil worth Rs 93.754 billion and exported processed oil worth Rs 78.196 billion. Raw soybean oil imports accounted for Rs 70.99 billion, while processed soybean exports reached Rs 66.788 billion. Trade expert Ravi Shankar Sainju noted that recent Indian tariff revisions significantly influenced these figures. While oil exports constitute 46.5% of total exports, experts warn that the business relies on minimal processing and lacks significant domestic value addition or long-term employment generation for the country.

Nepal to Receive Rs 6.26 Billion IMF Loan

Nepal and the International Monetary Fund (IMF) reached a staff-level agreement for the seventh review under the Extended Credit Facility. Upon approval by the IMF Executive Board, Nepal will receive USD 43.2 million, equivalent to approximately Rs 6.26 billion. This brings total disbursements to USD 384.4 million, or around Rs 55.73 billion. While IMF team leader Sarwat Jahan noted satisfactory progress in customs and banking reforms, the report cautioned that economic growth for 2025/26 is projected at 3% to 3.5%, below potential levels due to investment uncertainty.

Two Microfinance Firms Seek SEBON Approval For FPOs

Matribhumi Laghubitta and National Laghubitta have applied to the Securities Board of Nepal (SEBON) for Further Public Offerings (FPOs). Matribhumi filed to issue 1,149,982 shares at a par value of Rs 100, totaling Rs 114.9 million. Meanwhile, National Laghubitta updated its application to issue 669,900 shares at a premium price of Rs 270 per share, totaling Rs 180.8 million. As of February 17, Matribhumi’s market price stood at Rs 965, while National Laghubitta traded at Rs 1,119 on the secondary market.

Hetauda Traffic Police Collect Rs 7.6 Million Revenue

The District Traffic Police Office in Makwanpur collected Rs 7.6 million in fines during the first seven months of the current fiscal year. Inspector Bachuram Phuyal of the office reported that 8,414 drivers were penalized for violating traffic regulations. This is a decrease from the previous year, where 30,034 drivers were fined Rs 24.1 million. Despite the revenue dip, authorities noted that 32 people died in 196 accidents this year. To further improve road safety, the police conducted 547 awareness sessions for 39,246 participants, including students and new drivers, while also providing free health check-ups for long-distance vehicle operators.

Gulmi Administration Collects Rs 474K Revenue

The District Administration Office in Gulmi collected Rs 474,750 in revenue over the past week. Assistant Chief District Officer Hari Prasad Gaire reported that the funds were generated from passport applications, institutional renewals, and national identity card services. Specifically, passport fees contributed Rs 465,000, while national ID services brought in Rs 9,000. During this period, the office issued 86 new citizenships and 64 copies while distributing 117 passports and 197 identity cards. The administration continues to publicly release weekly performance data to ensure transparency and keep the local community informed of its civil and financial activities.

Rs 9 Billion Fast Track Project Stalled By Funding

The Dhangadhi-Chaitpur-Urai Bhanjyang Fast Track, intended to connect Sudurpashchim’s hills to the plains, remains delayed despite being a major election issue. Project Chief Shashank Mishra reported that only Rs 1.77 billion has been spent out of the estimated Rs 9.155 billion total cost. Currently, work is limited to paving small sections and constructing seven bridges. Although the project could reduce the travel distance between Dhangadhi and Dipayal by 90 kilometers, only Rs 150 million was allocated this fiscal year against a Rs 550 million liability. Candidates like Trilochan Bhatta and Prem Bahadur Ale continue to prioritize the route.

Rs 6.5 Million Barriers Effective in Dry Season but Require Daily Waste Sorting

The High-Powered Committee for Integrated Development of the Bagmati Civilization has installed “trash barriers” at six locations in Kathmandu to collect floating river waste. The project, costing Rs 6.5 million, placed barriers in areas including Guheshwari, Tilganga, UN Park, and Balkumari. Deputy Director Uddhav Nepal stated that the barriers effectively trap plastic bottles, foam, and wood, allowing for centralized collection. The floating structures adjust automatically to water levels. Following this successful trial phase, the Ministry of Urban Development plans to evaluate the system’s performance during the upcoming monsoon before expanding the initiative to other rivers.

Department Destroys Water Jars and Fines Healthcare Firms

The Department of Food Technology and Quality Control took action against Danphe Water Industry in Godawari after discovering the use of dirty, dented, and old water jars. Following consumer complaints, inspectors found the facility lacked mandatory hygiene records and that workers were not using protective gear. Officials destroyed six substandard jars and collected samples for laboratory testing. Separately, the Department of Commerce fined Shubham Healthcare in Birgunj Rs 201,000 for operating without renewing its registration. These enforcement actions are part of a broader monitoring campaign in Birgunj and Bhaktapur to ensure business compliance with the Consumer Protection Act.

FNCCI President Urges Rs 10 Billion Energy Investment

Addressing the Second Indo-Nepal Trade Fair 2026 in New Delhi on Friday, the Federation of Nepalese Chamber of Commerce and Industries President Chandra Prasad Dhakal called for deeper economic cooperation between Nepal and India. He urged Indian investors to explore opportunities in Nepal’s energy, tourism, and pharmaceutical sectors, noting that Nepal is now exporting electricity to India. Dhakal emphasized the need for synchronized customs procedures, digital trade systems, and technology transfer for small industries. He highlighted that with stable policies and transmission lines, Nepal could become a reliable green energy partner. The fair aims to transform bilateral goodwill into concrete business partnerships and sustainable investment projects.

NAIMA Requests 80% Loan-to-Value Ratio for Auto Loans

The Nepal Automobile Importers and Manufacturers Association (NAIMA) has urged the Ministry of Finance and Nepal Rastra Bank to increase the loan-to-value ratio for hire-purchase loans to 80%. Currently capped at 60%, NAIMA claims the limit has caused a market slowdown, reducing sales and government revenue. The association argued that since the banking system has excess liquidity and these loans are secured by collateral, easing the policy would stimulate economic activity. They emphasized that the automobile sector is a major contributor to customs, excise, and value-added taxes, supporting various auxiliary industries and employment.

Samyukta Urja Seeks Rs 416 Million IPO

Samyukta Urja Limited applied to the Securities Board of Nepal on February 17 to launch its Initial Public Offering (IPO). The company seeks permission to issue 4,160,000 shares at a par value of Rs 100, totaling Rs 416 million. Laxmi Sunrise Capital Limited has been appointed as the issue manager for the sale. The company currently operates the 21.3-megawatt Thulo Khola Hydropower Project in Myagdi district, which began commercial electricity production on August 25, 2025. This offering will allow the general public to invest in the operational energy project.