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:

WTO Forecasts Global Trade Growth to Slow to 1.9 Percent

The World Trade Organization (WTO) projected that global merchandise trade growth will shrink to 1.9% in 2026, down from 4.6% in 2025. The ‘Global Trade Outlook and Statistics’ report warns that conflict in West Asia could further depress these figures if energy prices spike or transport disruptions persist. WTO Director-General Ngozi Okonjo-Iweala noted that while AI-related products and supply chain resilience offer some stability, the Strait of Hormuz remains a critical risk for global fertilizer and food security. Global GDP growth is expected to remain steady at 2.8% through 2027, provided energy costs remain manageable.

NRB Governor Urges Mobilization of Rs 900 Billion Idle Liquidity

Nepal Rastra Bank (NRB) Governor Biswo Nath Poudel has called on the government to create an investment-friendly environment to mobilize Rs 900 billion currently held as excess liquidity in the banking system. Speaking to economic journalists, the NRB head suggested implementing tax exemptions for emerging sectors, similar to those that previously boosted the hydropower industry, to redirect this idle capital into productive areas. While Nepal’s foreign exchange reserves remain stable, Paudel warned that a prolonged Iran-Israel conflict could eventually disrupt global supply chains and remittance inflows, making the strategic utilization of domestic capital essential for sustainable economic growth.

Fuel Shortages in India Force Nepali Migrant Workers to Return Home

A growing shortage of cooking gas in Indian cities has triggered an influx of Nepali migrant workers returning through the Trinagar border in Kailali. Workers from Mumbai and Pune, including Roshan Khadka and Mahesh Bhatta, reported that hotels and businesses are closing due to fuel supply disruptions linked to the West Asian conflict. While local authorities in Kailali and Kanchanpur maintain that domestic supplies of diesel, petrol, and LP gas remain stable under the half-cylinder sale policy, returnees cited unemployment risks as the primary reason for their early return ahead of the Bishu festival (a vibrant New Year celebration in Sudurpaschim Province, marking the start of the Bikram Sambat calendar around April).

Red Sea and Hormuz Conflict Disrupts Raw Material Supply for Water Industries

Nepal’s bottled water industry faces a shutdown as conflict in the Red Sea and the Strait of Hormuz halts the supply of PET resin and HDPE. Nepal Water Industries Association president Vikram Limbu reported that international prices for plastic granules jumped 40%, reaching up to USD 1,250 per ton. Shipping costs have surged by 200% due to war risk surcharges, causing banks to cancel Letters of Credit. With only one week of stock remaining in many provinces, the association has requested government customs waivers or a price hike to avoid a total market collapse in the Kathmandu Valley.

War in West Asia Triggers Price Hikes in Cement and Steel

The ongoing US-Israel-Iran conflict has led to a sharp increase in construction material prices in Nepal, impacting national infrastructure projects. Over the last 10 days, OPC cement rose from Rs 730 to Rs 790 per bag, while steel rods jumped by Rs 20 per kg to reach Rs 105. Federation of Contractors’ Associations of Nepal (FCAN) President Rabi Singh alleged that industries are creating artificial shortages during the peak construction season. While manufacturers claim rising raw material import costs justify the hike, the Department of Commerce, Supplies, and Consumer Protection has launched monitoring operations at 15 depots.

Koshi Province Reports Stable Chemical Fertilizer Supplies

Farmers in Koshi Province have expressed relief as the supply of chemical fertilizers remains stable during the maize and Chaite rice seasons. The Krishi Samagri Company Limited (KSCL) Provincial Office in Biratnagar currently holds 16,856 metric tons of urea, 2,472 metric tons of DAP, and 3,412 metric tons of potash. Acting Chief of the company Kamal Pokharel confirmed that 750 cooperatives are facilitating distribution. Despite the current surplus, Pokharel warned that a prolonged Middle East conflict could disrupt future international supply chains. To mitigate risks, the government has maintained a “buffer stock” of 7,000 metric tons for emergencies.

Bagmati Province Collects Rs 24.49 Billion in Revenue

Bagmati Province collected Rs 24.49 billion in revenue during the first eight months of the current fiscal year 2025/26, meeting 36.29% of its annual target. Real estate registration contributed Rs 2.56 billion, while vehicle-related taxes brought in Rs 4.44 billion. Ministry official Suraj Paudel attributed the lower-than-expected collection to economic liquidity issues and damages from the September 8 and 9, 2025, protests. The province also received Rs 7.94 billion in equalization grants from the federal government, representing 53.60% of the estimated amount.

Gandaki Province Allocates Rs 13 Million for River Embankments

The Sudarpaschim Province government has released Rs 13 million for embankment construction across six rivers in Bardagoriya Rural Municipality, Kailali. According to engineer Tara Prasad Bhatta from the Soil and Watershed Management Office, Kailali, projects include Rs 4 million for the Kuwaghatkanda River and Rs 2 million for the Patharaiya River. The works, managed through local consumer committees, aim to prevent the erosion of hundreds of hectares of fertile land and settlements before the mid-June deadline. These flood control measures are critical for protecting regional agricultural productivity and rural infrastructure during the monsoon.

Over 2,300 Nepalis Return Home Voluntarily Amidst Middle East Conflict

The Department of Immigration reported that 2,293 Nepali citizens have returned from West Asia due to escalating tensions between the US, Israel, and Iran. Returning travelers include 1,092 from Qatar, 971 from Saudi Arabia, and 121 from Oman. Ministry of Foreign Affairs spokesperson Lok Bahadur Chhetri stated that while a collective state-led rescue is not yet required, the government is coordinating with airlines like Nepal Airlines and Fly Dubai for those choosing to leave. Currently, 82,100 citizens have registered on the online portal, with 6,000 expressing safety concerns as the conflict impacts regional security and employment.

Nepalgunj Customs Collects Over 80% Revenue Target

The Nepalgunj Customs Office collected Rs 12.754 billion in revenue during the first eight months of the current fiscal year 2025/26. This represents 80.88% of the Rs 15.77 billion target set for this period. Customs Chief Janardan Paudel noted an 8% increase compared to the previous year’s 72.48% achievement. Despite strong performance in January and February, reaching the total annual target of Rs 24.54 billion remains challenging, as 48% must be collected in the remaining four months.

FNCCI President Calls for NRN Investment in National Development

Federation of Nepalese Chambers of Commerce and Industries (FNCCI) President Chandra Prasad Dhakal urged newly elected members of the Non-Resident Nepali Association (NRNA) to link their capital and skills with Nepal’s economic prosperity. During a welcome ceremony at the FNCCI secretariat on Friday, Dhakal emphasized that recent policy reforms have created a conducive environment for foreign investment. NRNA President Dr. Hem Raj Sharma expressed the diaspora’s commitment to becoming partners in national development. Both organizations agreed to collaborate on simplifying procedural complexities to attract more NRN investment into large-scale infrastructure and industrial projects across the country.

Koshi Province Spends Rs 8.59 Billion in 8 Months

Koshi Province recorded a total expenditure of Rs 8.593 billion by the end of February 14. Out of the total annual budget of Rs 35.94 billion, current expenditure accounted for Rs 5.70 billion, while capital expenditure reached only Rs 2.88 billion. The Ministry of Water Supply, Irrigation, and Energy led spending at Rs 1.14 billion. Despite these figures, overall budget implementation remains sluggish due to previous political unrest and a 20% federal budget cut impacting smaller provincial projects.

Madhesh Province Budget Expenditure Limited to 11%

Madhesh Province has utilized only 11.17% of its total Rs 46.58 billion budget as of March 8. Capital expenditure is particularly low at 6.53%, while current expenditure stands at 19.58%. The Provincial Public Service Commission recorded the highest spending at 45.95%, whereas the Ministry of Sports and Social Welfare spent a mere 1.66%. Finance Secretary Ram Kumar Mahato cited the suspension of small-scale projects and administrative delays following the September 8 and 9, 2025, protests as primary reasons for the dismal fiscal performance.

Bagmati Province Capital Expenditure Lags at 17%

Bagmati Province spent Rs 15.05 billion, or 22.31% of its Rs 67.47 billion budget, during the first eight months of fiscal year 2025/26. Development-focused capital expenditure remains critical, with only 17.12% of the allocated Rs 41.43 billion utilized by late February (Falgun). Current expenditure reached 30.56%. Officials warn that the massive remaining balance of 78% necessitates a heavy spending rush in the final quarter, raising concerns over the technical quality and practical feasibility of project completions.

Gandaki Province Records 23.38% Budget Utilization

Gandaki Province utilized Rs 7.472 billion, or 23.38%, of its Rs 31.97 billion budget by March 12. Capital spending reached 20.92%, significantly lower than the 27.38% achieved in the same period last year. The Ministry of Industry and Tourism showed the lowest progress at 7.88%, while the Office of the Chief Attorney led with 42.79%. With only four months remaining, the “Tourism Capital” faces severe pressure to accelerate infrastructure projects that have been stalled by recent political transitions.

Lumbini Province Fiscal Expenditure Reaches 22.42%

Lumbini Province spent 22.42% of its Rs 38.91 billion budget by February 13. Including grants to local levels, total spending rose to 23.65%, or Rs 9.20 billion. The Ministry of Health achieved the highest expenditure at 68.18%, largely due to a Rs 700 payment for the Lumbini Provincial Hospital. Conversely, the Ministry of Internal Affairs and Law recorded a negligible 0.11% in capital spending. Chief Minister Chet Narayan Acharya’s policy of mandating tenders for projects over Rs 500,000 has left approximately 800 small plans in limbo.

Karnali Province Spending Slows to 19% Amidst Unrest

Karnali Province managed to spend only 19% of its Rs 32.99 billion budget in the first eight months of fiscal year 2025/26. This is a sharp decline from the 30% recorded during the same period last year. Chief Accounts Officer Dipendra Magarati stated that most spending covered salaries, while large-scale development projects remain inactive. The Ministry of Physical Infrastructure and Urban Development, which holds Rs 10.73 billion, has only spent 15.63%. Currently, Rs 26.51 billion remains idle in the provincial treasury.

Sudarpaschim Province Capital Progress Dips Below 10%

Sudarpaschim Province reported a weak budget implementation of 16.22% by March 14, totaling Rs 5.49 billion out of Rs 33.43 billion. Capital expenditure is particularly dire at 9.73%, with only Rs 1.92 billion spent on development. Information Officer Baldev Kapadi attributed the poor performance to prolonged tender processes, administrative delays, and staff shortages. The September 8 and 9, 2025, protests and subsequent election preparations further hampered project selection and execution, leaving the province’s growth and infrastructure goals significantly behind schedule.

Construction Delays Plague Kamala River Bridge Project

The 469-meter bridge over the Kamala River on the Hulaki Highway remains incomplete 15 years after the 2011 contract signing. Despite repeated extensions and significant payments to contractors, the vital link between Siraha and Dhanusha lacks structural integrity following flood damage four years ago. Local residents face extended travel times, increasing from 30 minutes to over 90 minutes, and must rely on risky diversions or boats during the monsoon. Although the project remains a recurring political agenda during elections, the lack of technical accountability and design revisions continues to hinder regional economic connectivity and trade.

Baglung Upgrades 11 Road Projects Worth Rs 495 Million

The Road Division Office Baglung has simultaneously initiated the upgrade of 11 road projects across the district with a total investment of Rs 495.4 million. The largest project, the Harichaur-Malm-Pandavkhani-Ramua road, is in its final stages with 70% physical progress at a cost of Rs 250 million. Other projects include the Dullebensi-Amarpuri road at 60% progress and the Adarsha Prabi-Syalkhapala road at 54%. Division Chief Hari Subedi noted that while most contracts were signed after the fiscal year 2024/25, these upgrades are essential for improving rural connectivity and regional trade by mid-July 2026.

Funding Delays Stall Pathari-Shanischere Administrative Building Project

Construction of the Pathari-Shanischere Municipality administrative building faces delays due to a budget shortage from the Department of Local Infrastructure. Although the municipality already spent Rs 57.4 million achieving 70% physical progress, the department has only released Rs 8.1 million of its promised 50% share. Chief Administrative Officer Radha Krishna Khatiwada warned that diverted local development funds cannot cover the remaining costs of the Rs 110.8 million project. Senior Engineer Nisha Tripathi stated the department’s Rs 2 billion budget is spread thin across 166 projects, hindering timely payments.

Rabi Prasad Acharya Elected President of NTVA Gandaki Province

The seventh annual general meeting and fourth convention of the Nepal Tourist Vehicles Association (NTVA) Gandaki Province unanimously elected a new executive committee led by Rabi Prasad Acharya. The assembly also elected Bikas Prasad Kandel as first vice president, Bhubani Prasad Adhikari as second vice president, and Shyam Prasad Lamichhane as general secretary. Outgoing president Durga Datta Dahal and Pokhara Tourism Council president Taranath Pahari congratulated the team. Newly elected president Acharya pledged to enhance the quality of tourist transport services and maintain the prestige of the green number plate system during his tenure.

Buddhabhumi Nepal Hydropower to Issue 100% Rights Shares

Buddhabhumi Nepal Hydropower Company will open the issuance of 100% rights shares starting May 5. The company is offering 4 million shares at a par value of Rs 100 each, maintaining a 1:1 ratio for existing shareholders. The book closure was completed on February 13, and the offer will remain open until April 26. NIC Asia Capital is the issue manager. Upon successful completion, the company’s paid-up capital will double from the current Rs 400 million to Rs 800 million.

US Dollar Reaches Record High of Rs 150.24 Against Nepali Rupee

Nepal Rastra Bank (NRB) reported that the US dollar hit a historic peak today, with a selling rate of Rs 150.24 and a buying rate of Rs 149.64. Other major currencies also saw significant movement, with the UK pound sterling selling at Rs 201.19 and the euro at Rs 173.81. In the Gulf region, the Saudi Riyal was priced at Rs 40.01 and the UAE Dirham at Rs 40.91. The Indian rupee remained stable with a selling rate of Rs 160.15 for 100 units.