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 Falls 1.64 Percent as Turnover Drops to Rs 13.18 Billion

The Nepal Stock Exchange (NEPSE) index fell by 46.78 points, or 1.64 percent, on Wednesday, closing at 2,796.57 points. The Sensitive Index also declined by 8.32 points, or 1.69 percent, to 481.37. A total of 36,049,451 shares of 329 companies were traded through 115,550 transactions, generating a turnover of Rs 13.18 billion, down from Rs 21.502 billion on Tuesday. Share prices of 225 companies declined, while 34 gained and three remained unchanged. Among 13 sectoral indices, only the Mutual Fund group rose by 0.34 percent, while all other groups posted losses, led by Trading (3.40 percent), Finance (2.08 percent), and Life Insurance (1.98 percent).

India Eases Investment Rules for Neighbors, Including Nepal

The Indian Cabinet decided on Tuesday to exempt neighboring countries, including Nepal, from stringent investment prior-approval rules. Previously, under the April 2020 Press Note 3, any country sharing a land border with India required government permission for Foreign Direct Investment (FDI) to prevent opportunistic takeovers during the pandemic. The new amendment allows investors from these nations to invest up to 10% through the automatic route in non-strategic sectors. Proposals in specified fields like electronics and capital goods will now be processed within 60 days. However, majority ownership and control of the recipient entities must remain with resident Indian citizens or Indian-controlled firms.

NRB Collects Rs 30 Billion in Liquidity Management Move

The Nepal Rastra Bank (NRB) successfully collected Rs 30 billion from the banking sector through a 28-day deposit collection instrument on Wednesday. Issued to manage excess liquidity in the market, the central bank invited bids from Category ‘A’, ‘B’, and ‘C’ financial institutions. The interest rate was determined through an online bidding process held on Wednesday afternoon, prioritizing institutions offering the lowest rates. According to the NRB, the principal and interest for this liquidity mop-up are scheduled for payment on April 8.

World Bank Approves Rs 7 Billion Loan for Clean Air

The World Bank has approved a loan of Rs 7.72 billion (USD 52 million) to improve air quality and reduce pollution in Nepal. Headquartered in Washington, D.C., the bank announced that the “Nepal Clean Air and Prosperity Project” will target high-risk areas like the Kathmandu Valley and parts of the Terai. The initiative aims to transition approximately 400 industrial and commercial enterprises toward smokeless operations. Implementation will be handled by the Department of Industry and the Department of Environment, focusing on reducing health risks associated with the country’s worsening atmospheric conditions.

Internet Traffic Hits Record 100 Gbps During Election

Domestic internet traffic in Nepal reached a historic milestone of 100 Gbps for the first time as citizens followed the March 5 election results. The Nepal Internet Exchange (NPIX) reported that the combination of election counting and T20 cricket matches drove the surge in local data usage. While Nepal has an international bandwidth capacity of 2,500 Gbps, the rise in domestic traffic reduces dependency on international links and improves speeds for local news and social media. This milestone is seen as a positive indicator for the country’s digital economy and the growing consumption of online content across mobile and broadband networks.

Government Internal Debt Reaches Rs 1.349 Trillion Amid Falling Interest Rates

Nepal’s internal debt reached Rs 1.349 trillion by mid-February, yet the government is benefiting from historically low interest rates. Due to high liquidity and weak private sector credit demand, the average interest rate on internal debt dropped to 3.33% this year, down from 8.84% in 2022/23. Finance Minister Rameshore Khanal noted that while cheap debt helps manage the fiscal deficit, the lack of productive investment by the private sector is a concerning economic signal. Currently, the interest payment ratio has fallen to approximately 4.30%, providing significant relief to the state treasury.

International Airlines Partially Resume Flights to Kathmandu

International carriers began partially resuming flights to Kathmandu on Tuesday as Middle Eastern airspace reopened following a brief period of high tension. Air Arabia received permission for 3 daily flights from Dubai and Sharjah, providing relief to stranded tourists and migrant workers. While Nepal Airlines and Himalaya Airlines are preparing for rescue flights, the status of Qatar Airways and Jazeera Airways remains uncertain. Approximately 300 passengers are currently stuck in Kathmandu, with another 100 in Doha. Nepal Airlines scheduled a wide-body rescue flight for Wednesday night to transport passengers who purchased tickets before the conflict began.

Global Fertilizer Supply Threatened by Strait of Hormuz Closure

Agricultural markets face a severe threat as the closure of the Strait of Hormuz halts fertilizer shipments from the Middle East. The route handles 35% of global urea and 45% of sulfur exports. Prices in the US jumped from USD 516 to USD 683 per ton on Thursday, while a major factory in Qatar shut down due to gas supply cuts. India, which imports 40% of its urea from this region, is already seeing production drops at domestic plants. Analysts warn that prolonged conflict could push prices back to 2022 peaks of USD 1,100 per ton, potentially leading to global food inflation.

Govt. Maintains Fertilizer Stocks Amid Middle East Conflict

The Ministry of Agriculture has assured the public that there is a sufficient stock of 183,000 metric tons of chemical fertilizer for the upcoming rice season. Despite global supply concerns and price hikes caused by the Middle East war, officials stated that 137,630 tons are currently in warehouses, with another 45,370 tons in transit. Joint Secretary Dr. Ram Krishna Shrestha confirmed that sources for an additional 300,000 tons have been secured for the next fiscal year. While Nepal imported Rs 42.63 billion worth of fertilizer in the last seven months, primarily from China, the government is exploring alternative routes to mitigate risks.

Local Unit to Construct Rs 6 Crore Fecal Sludge Plant

Ghorahi Sub-Metropolitan City has partnered with the Water Supply and Sewerage Management Office to build an advanced fecal sludge treatment plant. The project, estimated to cost Rs 61.4 million, will be located on 13545.25 square meters of the existing dumping site in Ward 13. Mayor Narulal Chaudhary signed the agreement to manage waste from urban toilets, aiming to reduce environmental pollution in the rapidly growing city. UN-Habitat’s CWIS project will provide data support. The federal office will cover capital costs, while the sub-metropolis will manage daily operations, including purchasing desludging vehicles and hiring specialized staff.

German Ambassador Calls for Stronger Business Environment in Nepal

The German Ambassador to Nepal, Udo Eugen Volz, emphasized that attracting investment requires a robust business environment with clear policies and stable structures. Speaking at an event in Kathmandu with the Nepal-German Chamber of Commerce and Industry (NGCCI) and FNCCI, Volz urged entrepreneurs to participate in international trade fairs. He highlighted the growing interest of German tourists in Nepal’s mountaineering and adventure sectors. While NGCCI President Santosh Chandra Kunwar noted three decades of cooperation, former President Anup Bahadur Malla cautioned that the trade balance, once positive, has recently shifted into a deficit.

Japan Grants Rs 12 Million to SAARC Secretariat

The Government of Japan has pledged Rs 12 million to the SAARC Secretariat to implement programs under the SAARC-Japan Special Fund. An agreement was signed on Monday by SAARC Secretary-General Golam Sarwar and the Japanese Ambassador to Nepal, Maeda Toru. This financial assistance is intended to strengthen cooperation and friendly relations between Japan and the eight member nations of the South Asian Association for Regional Cooperation. The fund typically supports regional projects in technology transfer, poverty alleviation, and cultural exchange, fostering deeper ties between East Asia and the South Asian regional body through collaborative initiatives.

7 Companies Shortlisted for Nagdhunga Tunnel Operations

Seven international companies have passed the technical evaluation to operate the Nagdhunga-Sishnekhola tunnel. Out of 10 initial applicants, including firms from China, India, and Turkey, seven joint ventures met the criteria, while three failed. Deputy Director Sanjay Panthi announced that financial evaluations will begin on March 15. The winning bidder will receive a five-year operational contract. Authorities aim to finalize the agreement by late March to allow for staff training, with plans to begin trial operations by mid-May. This marks a major step toward launching the country’s first modern road tunnel.

Four-Lane Madi River Bridge Reaches 77.7% Completion

Construction of the four-lane bridge over the Madi River, connecting Vyas Municipality 4 and 5, has reached 77.7% physical progress. Part of the Muglin-Pokhara road expansion, the bridge is being built by ZIST-Annak JV for Rs 1.21 billion. Information Officer Engineer Bishnu Prasad Pandey stated that the primary structural work is finished, with finishing touches underway. Approximately 125 workers are deployed daily to complete the artistic “arc design” structure within the current fiscal year. The project, funded by the Asian Development Bank, aims to alleviate traffic congestion in the Damauli region.

Buldi Khola Bridge Construction Hits 45% Progress Milestone

The construction of the Buldi Khola bridge, linking Deuralinagar and Bigyan Chaur in Tanahun, has reached 45% completion after years of technical delays. Following orders from the Infrastructure Development Office, the contractor recently demolished and rebuilt a substandard span to ensure safety. Division Engineer Rabindra Tiwari confirmed that the relocation of a power transformer has accelerated the 25-meter-long project. Initially contracted in 2020 for Rs 51 million, the bridge is vital for students from five local schools. Authorities expect to finalize the remaining work by mid-April.

Pokhara Underground Cabling Project Faces Repeated Delays

The project to install underground electric lines in Pokhara has reached 67% progress despite 3 deadline extensions. Managed by the Nepal Electricity Authority, the Rs 130 billion initiative is being executed by Tata Projects. While cabling is complete from the Pokhara International Airport to Prithvi Chowk, work remains unfinished in New Road and Chipledhunga. Project Chief Anand Subedi indicated that the latest June 30 deadline may be missed due to monsoon interference. The project utilizes horizontal directional drilling to minimize road damage while integrating optical fibers for internet and telephone services.

Mantabhir Cliff Obstructs Completion of Mid-Hill Highway

The Mid-Hill Highway, a national pride project aimed at serving 5,000,000 citizens, remains incomplete due to a 700-meter rocky section at Mantabhir in Jajarkot. Although 90% of the 440-kilometer section from Chaukhutte to Patihalne is finished, the track at Mantabhir has stalled for 13 years. Engineer Niranjan Thapa stated that a new survey was sent to the Department of Roads to authorize expensive rock-cutting. Additionally, a 126-meter bridge over the Bheri River remains derelict after the previous contractor, YP Construction, abandoned the Rs 140 million project after building only two pillars.

Department Fines Two Firms During Market Inspection

The Department of Commerce, Supplies, and Consumer Protection conducted inspections of 13 firms in a single day, resulting in fines for two establishments. Sindhu Fruits and Fresh Center in Madhyapur Thimi was fined Rs 20,000, while Panchakanya Tridev Dairy Shop in New Baneshwor received a Rs 10,000 penalty under Section 38 of the Consumer Protection Act, 2018. Additionally, the department issued corrective instructions to 11 other firms. These regular monitoring activities, involving local stakeholders and consumer rights activists, aim to curb market irregularities and ensure fair trading practices across various commercial sectors.

Raw Material Shortage Cripples Sunsari-Morang Jute Industry

The jute industry in the Sunsari-Morang Industrial Corridor is facing a crisis as raw material imports from Bangladesh and India plummeted. Production capacity has dropped by 60%, falling to 100 metric tons daily from a potential 240 metric tons. Nepal Jute Association President Rajkumar Golcha reported that over 3,000 workers have lost their jobs due to the shortage. Bangladesh reduced exports following a 7% crop decline caused by floods and heatwaves, while India prioritized domestic supply. Currently, mills only hold enough stock for 10 to 30 days, forcing many to reduce operations to two shifts.

Farmers in Bhojpur Busy with Winter Potato Harvest

Farmers across Bhojpur are currently engaged in harvesting and storing winter potatoes as the crop reaches maturity. In Bhojpur Municipality, Shadananda Municipality, and Temke Maiyung Rural Municipality, residents are working from dawn to dusk to dig, sort, and bag the produce. Local farmer Dhan Bahadur Thapa noted that potatoes provide faster income than other crops, though a shortage of youth workers due to foreign employment remains a challenge. Data from the Agriculture Knowledge Center shows the district produced 51,900 metric tons of potatoes last year across 3,272 hectares, serving as a vital food source and cash crop.

Tomato Prices Surge in Kalimati Market

Tomato prices saw a significant increase at the Kalimati Fruit and Vegetable Market on Wednesday. The average wholesale price of small Terai tomatoes jumped by 22.22%, rising from Rs 45 to Rs 55 per kilogram. Similarly, small local tomatoes increased by 14.29% to reach Rs 40 per kilogram, while small Indian tomatoes rose by 13.64% to Rs 50. In contrast, the price of large Indian tomatoes remained stable at an average of Rs 65 per kilogram. Market analysts attribute the fluctuations to supply chain disruptions and shifting seasonal production volumes across the region.

Grape Prices Rise at Kalimati Wholesale Market

The price of grapes increased at the Kalimati Fruit and Vegetable Market on Wednesday. According to the Kalimati Fruit and Vegetable Market Development Committee, the average wholesale price for green grapes rose by Rs 15, reaching Rs 210 per kilogram compared to Rs 195 on Tuesday. Black grapes also saw a price hike of Rs 10, with the wholesale rate moving from Rs 300 to Rs 310 per kilogram. Retailers and consumers are feeling the impact of these daily fluctuations as demand for seasonal fruits remains high despite the rising costs in the country’s largest agricultural wholesale hub.

Kalinchowk Hydropower Extends IPO Deadline for Locals

Kalinchowk Hydropower Company has extended the application deadline for its Initial Public Offering (IPO) targeted at local residents until March 27. The extension follows low participation from project-affected areas in Dolakha district, specifically Bigu and Kalinchowk rural municipalities. The company is offering 550,000 shares at Rs 100 each, representing a portion of its Rs 550 million capital. Managed by RBB Merchant Banking, the funds support a 5-megawatt project on the Soru Khola, estimated to cost Rs 1.20 billion. Residents can apply for a minimum of 10 to a maximum of 10,000 shares.

Taskar Pikhuwa Khola Hydropower Opens IPO for Locals

Taskar Pikhuwa Khola Hydropower opened its Initial Public Offering (IPO) on Wednesday for local residents and migrant workers. The company is issuing 1,200,000 shares worth Rs 120 million for Bhojpur locals, with a deadline of March 25. Additionally, 303,067 shares are reserved for Nepalis employed abroad. The 8-megawatt project has a total estimated cost of Rs 1.88 billion. Care Rating Nepal assigned a Double B Plus rating, indicating average risk. Prabhu Capital is managing the sale, which includes a second phase for the general public involving over 2,500,000 shares.

Gold Price Increases by Rs 2,000 Per Tola Today

Gold prices increased in the market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 2,000 per tola (11.66 grams) today, reaching Rs 319,000 per tola. On Tuesday, gold was traded at Rs 317,000 per tola. Similarly, the price of silver remained stable on Wednesday. Silver, which was traded at Rs 5,720 per tola on Tuesday, is being traded at the same price on Wednesday as well.