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 Ends Week Higher with Broad-Based Gains

On Thursday, the Nepal Stock Exchange (NEPSE) rose 23.87 points, or 0.85 percent, closing at 2820.44, while the Sensitive Index gained 5.01 points to 486.38 (+1.04%). A total of 41.69 million shares were traded across 130,015 transactions of 335 companies, generating a turnover of Rs. 14.551 billion. 176 companies’ shares rose, 77 fell, and nine remained unchanged. Most sectoral indices gained, led by Commercial Banks (+2.02%), Development Banks (+1.28%), and Finance (+1.30%), while Hotel & Tourism (-0.35%), Non-Life Insurance (-0.04%), and Others (-0.74%) saw slight declines.

Government Cash Balances Reach Over Rs 373 Billion

Data released by Nepal Rastra Bank (NRB) on Wednesday shows that the government’s total cash balance reached Rs 373.73 billion by mid-February. This amount includes funds held in various accounts of the federal, provincial, and local governments. Compared to the end of the previous fiscal year in mid-July 2025, when the balance stood at only Rs 149.83 billion, the current figures indicate a significant liquidity increase within government coffers. This substantial growth in cash reserves reflects a rapid accumulation of treasury funds within the first seven months of the current fiscal year.

Remittance Inflow Surges by Nearly 40%

The country received Rs 1.261 trillion in remittances during the first seven months of the current fiscal year, marking a 39.8% growth. According to Nepal Rastra Bank data, Rs 1.98 trillion arrived from mid-January to mid-February alone. This surge has pushed foreign exchange reserves to Rs 3.302 trillion, sufficient to cover imports for 18 months. During this period, 245,153 Nepalis obtained new labor approvals, while 227,424 renewed their permits. Additionally, inflation remains manageable at 3.25%, significantly lower than the 4.16% recorded during the same month last year.

Consumer Inflation Rises to 3.25 Percent in Mid-February

The country’s annual point-to-point consumer inflation reached 3.25% from mid-January to mid-February, up from 2.42% in the previous month. According to Nepal Rastra Bank, the food and beverage group saw a 2.50% increase, with vegetable prices surging by 11.63%. However, pulses and legumes saw a price drop of 5.19%. Regionally, Madhesh Province recorded the highest inflation at 5.14%, while Karnali Province had the lowest at 1.62%. Comparatively, Nepal’s inflation of 3.25% remains higher than India’s recorded rate of 2.75% for January, reflecting varied regional market pressures and supply chain dynamics.

Private Sector Credit Growth Reaches Only 4%

Private sector credit expansion reached only 4% in the first seven months of the fiscal year, far below the 12% target set by the Nepal Rastra Bank monetary policy. Total credit stood at Rs 5.719 trillion by mid-February, with only Rs 221 billion in new loans issued since July. Economic experts attribute this sluggishness to the violent Gen Z protests in September, which caused Rs 84.45 billion in total damages and dampened investor confidence. Despite high liquidity and falling interest rates, businesses remain hesitant to borrow due to political instability and previous high-interest defaults.

Health Insurance Board Orders Hospitals to Provide On-Site Medicines

The Health Insurance Board has issued a formal circular directing all healthcare institutions to stop requiring insured patients to purchase medicines from outside pharmacies. Information Officer Bikesh Malla stated that some hospitals were forcing patients under insurance packages to buy medical supplies in cash from external shops, violating the Health Insurance Act 2018. Under the Health Insurance Regulations 2018, non-compliant hospitals will face legal action under Rule 18. The national program currently provides coverage of up to Rs 100,000 for families of five based on a Rs 3,500 contribution.

Cabinet Considers Rs 9 Million Emergency Aid for West Asia Missions

A proposal has been submitted to the Council of Ministers to provide Rs 9 million in emergency aid to nine Nepali missions in West Asia. Under the plan, each mission will receive Rs 1 million to assist workers and professionals needing immediate repatriation. Since the launch of the online registration portal, 63,577 Nepalis have registered, with over 6,000 reporting high-risk status. Recent rescue efforts facilitated the return of 17 crew members from Doha, while 29 pilgrims from Saudi Arabia are expected to arrive in Kathmandu on Thursday.

IEA to Release 400 Million Barrels of Oil Amid Middle East Tension

The International Energy Agency (IEA) has decided to release 400 million barrels of oil from emergency reserves to address global supply shortages caused by Middle East tensions. Under this unanimous agreement by 32 member nations, the United States will contribute the largest portion of 172.2 million barrels. IEA Executive Director Fatih Birol stated this unprecedented step is necessary as attacks near the Strait of Hormuz have spiked oil prices. Member countries currently hold over 1.2 billion barrels in emergency stocks, ensuring that the market remains stabilized despite regional conflicts affecting primary transit routes for global fuel supplies.

10 Brokerage Firms Struggle to Meet Capital Requirements

Ten stock brokerage firms have yet to meet the minimum paid-up capital requirement of Rs 200 million set by the Securities Board of Nepal (SEBON). Despite being granted a 9-month extension that expires in April, companies like Arun, Market, and Creative Securities still face shortfalls. While SEBON issued merger and acquisition guidelines in March 2025 to facilitate capital growth, no formal written plans have been submitted by the lagging firms. Currently, only two firms operate as full-service brokers with Rs 600 million capital, while the majority of the 88 limited-service brokers are racing to comply with the new regulations.

SEBON Fines 3 Brokerage Firms for Money Laundering Violations

The Securities Board of Nepal (SEBON) has imposed fines totaling Rs 11 million on three stock brokerage firms for violating the Anti-Money Laundering Act, 2008. Cipla Securities received the highest penalty of Rs 5 million, while Shree Krishna Securities and Hatemalo Financial Services were fined Rs 3 million each. The regulator found the firms in breach of Section 7, which mandates strict reporting and prevention measures against financial crimes. This enforcement action follows a detailed audit of the firms’ compliance structures. SEBON emphasized that all market intermediaries must strictly adhere to transparency laws to maintain the integrity of the Nepal Stock Exchange.

Mining Department Warns Against Illegal Gold Exploration Methods

The Department of Mines and Geology has issued a stern warning to companies using heavy machinery and diverting river flows for gold exploration. Although the department has issued licenses for over 60 locations, including the Kaligandaki and Budi Gandaki rivers, it noted that current practices violate the Mines and Minerals Act, 1985. Some firms are reportedly using unauthorized foreign technicians and damaging the environment contrary to their approved work plans. The department cautioned that failure to adhere to environmental safeguards and public interest conditions will result in the immediate cancellation of exploration licenses and potential legal action against the violating companies.

Government Allocates Rs 140 Million for Minister Residence Repairs

The Federal Secretariat Construction and Management Office has initiated a Rs 140 million project to repair 11 ministerial residences in Bhaisepati. Following damages sustained during the Gen Z protests, where 23 out of 24 buildings were arsoned, the government is exploring alternative housing for the new cabinet. Options include renting private apartments or providing administrative support for ministers staying in their own homes. The repair work is slated for completion by July 2026. Meanwhile, a second phase of bidding is being prepared for the remaining 15 residential structures within the 48329.62 square meter complex.

Middle East Tensions Disrupt Cooking Gas Supply in Nepal

Escalating conflict in the Middle East has disrupted the global supply chain, leading to a shortage of Liquefied Petroleum Gas (LPG) in Nepal. Tensions involving the United States, Israel, and Iran have affected shipping through the Strait of Hormuz, impacting fuel exports from the United Arab Emirates (UAE) and Oman. Consequently, long queues of consumers with empty cylinders were seen at the Balaju Industrial Area on Thursday morning. Although the Nepal Oil Corporation (NOC) is attempting to coordinate with the Indian Oil Corporation (IOC), supply remains limited, forcing many retail depots to close as panic buying increases across the Kathmandu Valley.

Dhanusha Implements One-Cylinder Policy to Curb Gas Hoarding

The District Administration Office in Dhanusha, led by Chief District Officer Prem Prasad Luitel, has introduced a “one family, one gas cylinder” policy to prevent artificial shortages. During a meeting with security agencies on Wednesday, officials mandated that dealers must prioritize domestic households over commercial entities like hotels. Sellers are now required to maintain records of every consumer’s name, address, and contact number. While the administration assured that the supply of petrol, diesel, and kerosene remains stable, it warned of strict legal action against traders engaged in hoarding or price carteling amidst rising geopolitical concerns in West Asia.

Lumbini Province Reports Sluggish Capital Expenditure of 21 Percent

Lumbini Province spent only 20.97% of its Rs 23.471 billion capital budget in the first seven months of the fiscal year. Total expenditure, including recurrent costs and grants, stands at Rs 9.2 billion, or 23.65% of the Rs 38.91 billion annual budget. The Ministry of Youth and Sports recorded the lowest capital spending at just 0.04%, while the Ministry of Health led with 68.18% expenditure due to hospital construction payments. Officials attribute the slow progress to political instability, federal budget cuts of 20%, and a new policy requiring tenders for all projects exceeding Rs 500,000.

Budget Shortfalls Stall National Pride Highway Projects

National pride road projects, including the Mid-Hill Highway, Postal Highway, and various corridors, are facing significant delays due to a lack of adequate funding. The Madan Bhandari Highway Project Directorate reported a liability of Rs 14 billion, yet only Rs 2.5 billion was allocated this fiscal year. Similarly, the Mid-Hill Highway, under construction for 18 years, has reached 84.69% progress with Rs 71.91 billion spent against a revised cost of Rs 84.33 billion. Officials from the Ministry of Physical Infrastructure and Transport stated that inadequate budget systems and contractor delays remain primary obstacles.

Postal Highway Facing Rs 10.5 Arab Outstanding Liability

The Postal Highway, a project spanning 1,857 kilometers across 21 districts, remains incomplete 16 years after its initiation. Construction progress stands at 74.35%, with 1,380 kilometers blacktopped and 153 out of 300 bridges finished. The Postal Highway Directorate noted that Rs 27 billion is still required to complete the remaining works, while the project currently faces an outstanding liability of Rs 10.05 billion. Although the completion deadline was revised to 2026/27 with a budget of Rs 101.93 billion, delays in multi-year source approvals from the Ministry of Finance continue to stall new contracts.

Corridor Projects Struggle with Slow Progress and Revised Costs

The Koshi, Kaligandaki, and Karnali corridors are experiencing sluggish growth, failing to meet original deadlines. The Koshi Corridor has reached only 46% progress, with its deadline extended to 2028/29 and costs revised to Rs 16.2 billion. The Kaligandaki Corridor is 82.05% complete, yet contracts for 40.42 kilometers of blacktopping remain unmanaged. The Karnali Corridor, started in 2008/09, shows the slowest progress at 20.5%, with its cost estimate jumping from Rs 4.10 billion to Rs 18.66 billion. Budget shortages and difficult terrain are cited as the main reasons for these persistent delays.

First Extra-Dosed Cable Bridge Reaches 57% Completion

Construction of the Seti River Bridge in Pokhara, part of the Mugling-Pokhara road expansion, has reached 57% completion. This landmark project is Nepal’s first “extra-dosed cable-stayed” bridge, costing Rs 1.07 billion including VAT. Supported by the Asian Development Bank (ADB), the 190-meter twin bridges feature a unique design with 12-meter towers to accommodate flight safety at the nearby international airport. While the downstream section is expected to finish within two months, the upstream side faces delays due to land compensation disputes. The project is contractually mandated for completion by May 4.

Thick Smog Halts Nepal Airlines Flights to Resunga Airport

Nepal Airlines Corporation (NAC) has suspended flights to Resunga Airport in Gulmi due to thick smog and adverse weather conditions persisting for over a week. Flights scheduled for Sunday and Tuesday were canceled after visibility dropped significantly, according to Suman Thapa, the station chief at Resunga Airport. The corporation recently reduced its schedule to three flights per week on Sundays, Tuesdays, and Saturdays due to the maintenance of its three Twin Otter aircraft. Currently, the fare is set at Rs 7,500 from Kathmandu and Rs 7,300 from Gulmi.

Buddha Air Retires Record-Breaking ATR-72 Aircraft

Buddha Air has formally retired its ATR-72 aircraft, call sign 9N-AJO, after it completed its maximum design life of 72,000 flight cycles. Since entering commercial service on July 2, 2010, the aircraft has carried 2,482,772 passengers over 16 years. Its final flight was conducted on March 9, 2026, from Bhairahawa to Kathmandu. Executive Chairman Birendra Bahadur Basnet noted that the airline made history by operating the aircraft through its full lifespan. ATR Senior Vice President Stefano Marazzani praised the airline’s technical maintenance and safety commitment, marking this as the second retirement following an ATR-42 exit in September 2024.

Marsyangdi Hydropower Center Resumes Production After Maintenance

The 69-megawatt Marsyangdi Hydropower Center in Anbu Khaireni Rural Municipality-4 has resumed electricity generation following a 21-day shutdown for maintenance. Technicians completed complex structural repairs, including the restoration of the “under sluice gate,” which had been non-functional for 14 years. According to Center Chief Kapil Dev Manjan, the project successfully cleared accumulated sand from the compensating pond and overhauled Unit Number 3. The center, which produced 451.7 gigawatt hours last year, had halted operations on February 14 to ensure sustainable operation and reduce technical risks during the low river flow season.

Upper Thulokhola Hydropower Completes Construction in Myagdi

The 22.5-megawatt Upper Thulokhola Hydropower Project in Raghuganga Rural Municipality 7, Myagdi, has completed its physical construction and started test production. Thulokhola Hydropower Limited developed the project, which includes a 2,900-meter pipeline and a 5-kilometer transmission line. The project, costing approximately Rs 3 billion, was funded with 70% debt from Citizens Bank and Machhapuchhre Bank. Electricity will be integrated into the national grid via the 220 kV Dana-Khurkot line. This marks the third major project in the Rahughat river basin to begin operations, following the 35.5 MW Chimekhola and 21.3 MW Thulokhola plants.

Madhesh Province Projects Rs 40.40 Billion in Mango Revenue

The Agriculture Development Directorate of Madhesh Province projects mango production to reach 400,000 metric tons this year, valued at Rs 40.40 billion. Farmers across the eight districts of the province have cultivated mangoes on 30,800 hectares of land. Madhesh Province currently accounts for 76% of Nepal’s national mango production, focusing on varieties like Maldaha and Amrapali. Despite the import of 359 metric tons of mangoes worth Rs 21.5 million from India last year, local farmers remain optimistic due to favorable flowering patterns observed this season.

First Flush Tea Harvest Begins in Ilam and Panchthar

The First Flush tea harvest, considered the highest quality production of the year, has officially commenced in Ilam and Panchthar. Entrepreneur Sharad Subba reported that the harvest started in the Soyak and Chilimkot areas, yielding an initial 250 kilograms. Prices for green leaves have been maintained at Rs 65 to Rs 1,500 per kilogram, consistent with last year. In the current fiscal year 2025/26, the country has exported 8,677,221 kilograms of tea worth Rs 2.321 billion. These premium harvests are primarily exported to third-country markets, including Germany, Russia, and the United States.

Early Paddy Cultivation Declines in Kanchanpur Due to Irrigation Scarcity

The area for early spring season paddy from mid-February to mid-April, called Chaite paddy in Kanchanpur, has shrunk from 400 hectares to just 150 hectares. Despite the Prime Minister Agriculture Modernization Project providing a 50% subsidy on boring equipment, farmers claim groundwater is insufficient for the water-intensive crop. Assistant Crop Development Officer Dharma Bahadur Saud noted that the Mahakali Irrigation Project fails to provide canal water during the crucial March and April months. Additionally, stray cattle and recurring droughts have discouraged farmers, leaving significant portions of the 161,741 hectares of total arable land in the district uncultivated during the spring season.

Snow Rivers Company to Issue IPO for Local Residents

Snow Rivers Company is set to issue its Initial Public Offering (IPO) starting March 23 for local residents and Nepali migrant workers. The company received approval to issue 1,875,000 shares, valued at Rs 187.5 million, which represents 20% of its total capital. Half of these shares are reserved for residents of Taplejung and Panchthar districts, specifically targeting the Sirijanga, Sidingwa, and Hilihang rural municipalities. Additionally, 93,750 shares are allocated for Nepalis working abroad with valid labor permits. Sanima Capital is managing the sale, with individual applications ranging from a minimum of 10 to a maximum of 10,000 units.

Dhaulagiri Microfinance to Withhold Dividends for Last Fiscal Year

Dhaulagiri Microfinance Financial Institution has decided not to distribute any dividends to its shareholders from the profits of the last fiscal year. The decision was made during a Board of Directors meeting held on Wednesday. Despite maintaining operational stability, the institution opted to retain its earnings rather than issuing cash dividends or bonus shares. This move leaves the hands of the shareholders empty for the current cycle. The institution is expected to focus on strengthening its internal reserves and capital adequacy following recent shifts in the microfinance regulatory environment and broader economic fluctuations affecting the lending sector in rural regions.

Gold and Silver Prices Decline Today

Prices of gold and silver declined in the local market on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 2,000 per tola (11.66 grams) compared to the previous trading day. Gold, which was traded at Rs 317,000 per tola on Wednesday, is now being traded at Rs 319,000 per tola. Similarly, the price of silver fell by Rs 205 per tola. Silver, previously traded at Rs 5,515 per tola, is now being traded at Rs 5,720 per tola.