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 26.07 Points; Turnover Drops to Rs 11.97 Billion

The index of the Nepal Stock Exchange (NEPSE) declined by 26.07 points on Monday, closing at 2798 points as market activity and turnover also fell. Daily trading volume dropped to Rs 11.97 billion from Rs 14.35 billion recorded the previous trading day. Share prices of 48 companies increased, while 211 declined and four remained unchanged. Among sectoral indices, only the Manufacturing and Processing group posted a gain of 0.25 percent, while all other sectors ended in negative territory. The Banking sector fell by 1.61 percent, Development Bank by 0.84 percent, Finance by 0.71 percent, Hotels and Tourism by 0.26 percent, Investment by 1.52 percent, Life Insurance by 0.94 percent, Microfinance by 0.75 percent, Non Life Insurance by 0.45 percent, Others by 1.09 percent, and the Trading group by 0.21 percent.

NOC Hikes Fuel Prices as Petrol Reaches Rs 172

The Nepal Oil Corporation (NOC) increased the prices of petrol, diesel, and kerosene effective from Sunday night, citing rising international costs. Petrol prices rose by Rs 15 per liter, while diesel and kerosene increased by Rs 10 per liter. In Kathmandu, Pokhara, and Dipayal, petrol now costs Rs 172 per liter, and diesel is priced at Rs 152 per liter. The NOC stated that despite receiving higher purchase rates from the Indian Oil Corporation (IOC) for LP gas, the retail price for cooking gas remains unchanged. Prices vary across three regional categories based on proximity to major distribution depots.

Air Ticket Prices Surge Amid West Asian Airspace Disruptions

International airfare from Nepal has skyrocketed following the cancellation of 16 flights due to West Asian airspace closures since February 28. Gyanendra Bhul, information officer for the Civil Aviation Authority of Nepal, stated that Qatar Airways, Jazeera Airways, and Kuwait Airways face ongoing disruptions. Ramesh Thapa of NATTA reported that economy tickets to the United States have reached Rs 300,000, while Europe routes cost up to Rs 200,000. Although Fly Dubai and Air Arabia have resumed some flights, the shortage of low-cost seats and route changes through Delhi or Southeast Asia continue to strain travelers and tourism.

Over 52,000 Nepalis Seek Foreign Employment in a Month

Data from the Department of Foreign Employment shows that 52,944 Nepalis received labor permits in one month (February 13 to March 14), despite the government suspending approvals for 11 (11) conflict-affected nations. The group included 46,452 men and 6,392 women. Malaysia remained the top destination with 12,601 workers, followed by the United Arab Emirates with 11,492 permits. While the March 1 ministerial decision halted new permits for countries like Israel, Saudi Arabia, and Qatar due to West Asian tensions, those who secured approvals earlier in the month were able to depart for their jobs.

Revenue Collection Reaches 50.49% of Annual Target in 8 Months

The government collected Rs 747 billion in revenue during the first eight months of the fiscal year, meeting 50.49% of the Rs 1.480 trillion annual target. Total income, including grants, reached Rs 765.1 billion. Finance Ministry spokesperson Tanka Prasad Pandey noted that while the March 5 election stimulated economic activity, achieving the revised target of Rs 1.298 trillion remains difficult. Currently, capital expenditure stands at Rs 78.48 billion, just 19.24% of its Rs 407 billion allocation.

CIB Arrests Former Finance Chair Yogendra Prasad Shrestha

The Central Investigation Bureau (CIB) of the Nepal Police arrested Yogendra Prasad Shrestha, the former Executive Chairman of Nepal Share Markets and Finance Limited, on Sunday. Shrestha, 69, was apprehended in Sitapaila, Nagarjun Municipality-5, based on a complaint from Nepal Rastra Bank. On August 21, 2024, the Supreme Court found him guilty in two cases, sentencing him to a total of six years in prison and fines amounting to Rs 226.7 million. The CIB has presented him to the Kathmandu District Court for the execution of the sentence.

ERC Rules Against Industrialists in Dedicated and Trunk Line Dispute

The Electricity Regulatory Commission (ERC) ruled on Sunday that the claims made by industrialists regarding the Dedicated and Trunk Line tariff dispute were insufficient. During a hearing for Panchakanya Plastic and Panchakanya Steel, the commission, led by Chairman Ram Prasad Dhital, upheld the Nepal Electricity Authority’s (NEA) right to collect outstanding dues. Panchakanya Plastic owes some Rs 2.4 million, while Panchakanya Steel owes Rs 5.2 million. This decision clears the way for the NEA to recover the remaining arrears. The ERC noted that while the ruling is final within its jurisdiction, the businesses retain the right to appeal in court.

Development Expenditure Limited to 19.24 Percent in 8 Months

Data from the Financial Comptroller General Office reveals that Nepal’s development expenditure reached only 19.24% during the first eight months of fiscal year 2025/26. Out of the Rs 4.07 billion allocated for capital spending, only Rs 78.48 billion was utilized by mid-March. In contrast, current expenditure stood at Rs 6.42 billion, or 54.37% of the target. Total revenue collection for the period was Rs 7.47 billion, leaving the government with a budget deficit as spending outpaced total receipts by Rs 180 billion.

Commercial Banks Increase Share Market Lending by 42.9%

Nepal Rastra Bank reported that 19 commercial banks increased their share market lending by 42.9% in the first seven months of the current fiscal year. Total lending reached Rs 133.076 billion, up from Rs 93.124 billion in the same period last year. Nabil Bank led with Rs 17.53 billion in loans, while Agricultural Development Bank recorded the highest growth rate at 286.3%. Only Citizens Bank and Nepal Bank reduced their exposure, while Standard Chartered Bank remains the only commercial bank avoiding this loan category entirely.

LP Gas Imports Via Belahiya Border Remain Steady Amid Shortage Fears

The Bhairahawa Customs Office reported that 6,660 tons of LP gas were imported through the Belahiya border during February/mid-March. Information Officer Uddhav Dhungana stated that imports remain consistent with previous months, with 47.4 million kg of gas arriving by mid-February. Despite steady supply, Pradeep Panta, president of the Gas Sellers Association Rupandehi, noted a perceived shortage as consumers rush to fill spare cylinders due to West Asian war fears. To prevent black marketing, Chief District Officer Madhav Prasad Pokharel and Tilottama Municipality Deputy Mayor Jageshwar Devi Chaudhary have initiated market monitoring and warned of legal action against hoarders.

Bagmati Province Records 17.12% Capital Expenditure in 8 Months

The Bagmati Province government spent only 17.12% of its capital budget during the first eight months of fiscal year 2025/26. According to Suraj Paudel, an officer at the Ministry of Economic Affairs and Planning, total expenditure reached Rs 15.05 billion, or 22.31% of the total Rs 67.477 billion budget. The Ministry of Culture and Tourism recorded the lowest spending at 7.64%. Paudel attributed the low performance to infrastructure damage and operational disruptions caused by the September 8 and 9, 2025, ‘Gen Z’ protests.

Sudurpashchim Province Capital Expenditure Falls Below 10%

The Sudurpashchim Province government recorded capital expenditure of less than 10 percent during the first eight months of the current fiscal year. Out of the Rs 19.83 billion allocated for development, only 9.99 percent, or Rs 1.97 billion, has been spent. The Provincial Treasury and Accounts Controller Office noted that Rs 17.85 billion remains with only four months left in the year. Although Chief Minister Kamal Bahadur Shah directed ministries on December 29, 2025, to submit spending plans within 15 days, no departments have complied.

Lumbini Province Records 25.4% Capital Spending in 8 Months

Lumbini Province spent 25.4% of its Rs 23.471 billion capital budget in the first eight months of the fiscal year. The Provincial Treasury and Accounts Controller Office reported that total spending, including current expenditure, reached 27.63% of the Rs 38.91 billion total budget. The Ministry of Health recorded the highest spending at 48.63%, while the Ministry of Internal Affairs and Law spent only 7.68%. Officials attributed the low figures to the common trend of back-loading work toward the end of the fiscal year and delays in executing projects within the Lumbini administrative sector.

Sunwal Municipality Begins Rs 30 Million Urban Road Upgrade

Sunwal Municipality has commenced the upgrading of the road section heading north from Sunwal Chok with a budget of Rs 30 million. The project aims to transform the 564-meter stretch into a modern two-lane road featuring drainage and sidewalks. Mayor Bimala Aryal described the project as a “lifeline” for the town and emphasized that there would be “zero tolerance” for poor construction quality. The municipality’s technical team and Chief Administrative Officer Sheshkant Poudel are coordinating with the Department of Roads to ensure the project meets all technical standards. The upgrade is expected to enhance urban aesthetics and improve safety for local residents in the market area.

BP Highway Permanent Reconstruction Intensifies at Three Locations

The Road Division Office Bhaktapur has accelerated the permanent reconstruction of the BP Highway at three damaged sections. Senior Divisional Engineer Suman Yogesh reported that 25% of the work is complete in the Kavrepalanchowk sections, with a goal to finish infrastructure before the upcoming monsoon. Following the devastating floods of the 2024 monsoon, the government allocated Rs 8.50 billion for the project. The Japan International Cooperation Agency (JICA) is also set to sign a contract this month for a 3.2 km stretch. The highway will be upgraded to a two-lane road, including the widening of five bridges.

Bhadrapur Tax Office Collects 80.43% of Revenue Target

The Inland Revenue Office Bhadrapur collected Rs 2.705 billion during the first eight months of the current fiscal year. This represents 80.43% of the Rs 3.364 billion target set for the period. Chief Tax Officer Gopal Bahadur Thapa reported that income tax contributed Rs 1.248 billion, while Value Added Tax (VAT) brought in Rs 973.2 million. Thapa noted that the March 5 elections slowed market monitoring, but the office plans to intensify taxpayer education to meet annual goals.

Minister Shilanyas Road Project for Palanse-Tarkeshwar Section

Bagmati Province Health Minister Kiran Thapa Magar performed the shilanyas (foundation stone laying) for the Palanse-Tarkeshwar road section in Suryabinayak Municipality-8. The Ministry of Physical Infrastructure Development has allocated Rs 300 million for the construction and upgrade of this route. The project will connect the Suryabinayak Ring Road and provide blacktopped access to tourist areas including Ranikot, Ghyampedanda, and Ashapuri. Ward Chairman Pushpa Raj Basnet stated the road will facilitate the “Shiv Circuit” for pilgrims and improve market access for local agricultural products. Construction activities commenced immediately following the ceremony to ensure the development of rural tourism and local trade within the municipality.

Kakarbhitta Immigration Office Records 6,791 Third-Country Tourists

The Immigration Office Kakarbhitta reported that 6,791 tourists from third countries entered Nepal through the eastern border point during the first eight months of fiscal year 2025/26. Office Chief Tulsi Bhattarai noted that arrivals from the United States, United Kingdom, and Bhutan peaked in January with 1,850 visitors. During the same period, 3,133 Nepalis returned home, while 6,552 foreign tourists and 1,847 Nepalis exited through this point. Total tourist entries via this border reached 8,723 in the previous fiscal year, 2024/25.

Entrepreneurs Urge Government to Operationalize Gautam Buddha International Airport

Industrialists and business owners in Rupandehi have demanded the immediate full-capacity operation of Gautam Buddha International Airport. Despite significant infrastructure completion, the airport remains underutilized, putting over Rs 100 billion in tourism investments at risk. Amit Gupta, a tourism entrepreneur, emphasized that the airport is vital for promoting Lumbini, Devdaha, and Tilaurakot. Netra Prasad Acharya, president of the Siddhartha Chamber of Commerce and Industry, expressed hope that the incoming government will prioritize international flight stability to boost the regional economy. Additionally, Madhu Prasad Panthi highlighted the airport’s potential for exporting goods from the Bhairahawa industrial corridor.

Krishnapur Municipality Offers 50% Subsidy on Banana Saplings

Krishnapur Municipality announced a program to provide banana saplings at a 50% subsidy to local farmers, cooperatives, and agricultural firms. Agriculture Branch Chief Lal Bahadur Dhami stated that the municipality has allocated Rs 500,000 to distribute saplings worth a total of Rs 1 million. Currently, 35 commercial farmers cultivate bananas across 55 hectares in the municipality. Interested parties must apply within 30 days with land ownership or lease documents. The initiative aims to increase local production, boost farmer income, and create employment opportunities within the agricultural sector of the municipality.

Madi Municipality Completes Land Classification into 7 Categories

The Local Land Use Council of Madi Municipality has classified its land into seven categories in accordance with the Land Use Act 2019. Chief Administrative Officer Jagat Prasad Bhusal reported that forests cover the largest area at 12,975.75 hectares out of a total 21,824.44 hectares. Other classifications include 6,535.07 hectares of agricultural land, 1,918.87 hectares for residential use, and 59.93 hectares for commercial activities. The municipality has forwarded the details to ward offices. Landowners dissatisfied with their plot’s classification may submit an appeal for reconsideration under the current land use implementation guidelines.

Sudurpashchim Province Hydropower Projects Await Construction Decisions

The Sudurpashchim Province government completed feasibility studies for three hydropower projects over six years but has yet to determine construction models. The projects include the 8.80 MW Naugad, 6.90 MW Surnayagad, and 7.71 MW Upper Surnayagad. Senior Divisional Engineer Mohan Kunwar stated that Rs 8 million to Rs 9 million was spent per study. While the Initial Environmental Examination (IEE) is approved, the lack of federal laws defining provincial authority over power generation stalls progress. Plans to attract private investment through a summit were postponed due to the September 2025 unrest, leaving the infrastructure projects in limbo.

Historical 200 KW Bajura Small Hydropower Plant Remains Shut

The Bajura Small Hydropower Project, the district’s first electricity plant built in the fiscal year 1989/1990 with Japanese aid, has been closed for five years. The 200-kilowatt plant, constructed by the Fuji Company for Rs 25 million, stopped operating after the national transmission line reached Martadi. Although Triveni Savings and Credit Cooperative managed it until January 18, 2022, the Nepal Electricity Authority has since reclaimed ownership but failed to resume operations. Local residents report that the abandoned canal has become a health hazard, while civil society leaders demand the plant be handed over to local levels for preservation.

Gold Price Rises, Silver Falls Today

Prices of gold and silver showed slight fluctuations in the local market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold increased by Rs 100 per tola. The price of gold has been fixed at Rs 309,500 per tola today. On Sunday, gold was traded at Rs 309,400 per tola. Meanwhile, the price of silver has decreased by Rs 5 per tola. Silver, which was traded at Rs 5,270 per tola on Sunday, has been fixed at Rs 5,265 per tola for Monday. In the international market on Monday, gold is being traded at $5,013.6 per ounce, while silver is trading at $80.12 per ounce.

Iran Closes Strait of Hormuz Sending Global Oil Prices to $100

Global energy markets are under extreme pressure after Iran effectively closed the Strait of Hormuz in response to the ongoing war with America and Israel. Consequently, crude oil prices surged nearly 50% on Monday, reaching approximately USD 100 per barrel. U.S. President Donald Trump urged NATO allies and China to deploy naval vessels to secure the waterway, which is critical for 95% of Japan’s oil supply. Iran’s Revolutionary Guards claimed to have fired 700 missiles and 3,600 drones during the conflict. In response, the International Energy Agency has decided to release 400 million barrels from strategic reserves to stabilize the global supply.