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:

Finance Minister Wagle presents budget for fiscal year 2026/27

KATHMANDU: Finance Minister Swarnim Wagle on Wednesday began presenting the annual budget for the fiscal year 2026/27 before a joint session of the Federal Parliament. The presentation marks the 75th formal budget announcement in the country’s history and the first federal budget presented by Wagle since assuming office as finance minister. Ahead of the presentation, Prime Minister Balendra Shah called a Cabinet meeting at 2:30 pm at the Office of the Prime Minister and Council of Ministers in Singha Durbar to endorse the government’s income and expenditure estimates for the upcoming fiscal year. Wagle is also scheduled to brief the Cabinet on the new budget amid heightened public and political interest surrounding the country’s economic direction and fiscal policy priorities.

Government Unveils Budget of Rs 2.124 Trillion for FY 2026/27

The government has announced a budget of Rs 2.12434 trillion for the upcoming fiscal year 2026/27. Finance Minister Swarnim Wagle informed a joint session of the Federal Parliament on Friday about the total size of the budget. Out of the total allocation, current expenditure is set at Rs 1.27058 trillion, which accounts for 59.8 percent of the budget. Meanwhile, Rs 431.10 billion has been allocated for capital expenditure, and Rs 422.24 billion has been earmarked for financial management.

Government Aims to Exit FATF ‘Grey List

Presenting the federal budget for Fiscal Year 2026/27 before a joint session of the Federal Parliament on Friday, Finance Minister Swarnim Wagle announced aggressive anti-money laundering goals alongside strict fiscal austerity measures designed to save the state treasury Rs 20 billion. In a major bid to safeguard Nepal’s international financial standing, Wagle declared that the government will take immediate and decisive steps to remove Nepal from the FATF “Grey List” as quickly as possible. Simultaneously, to address widening administrative expenditures, the budget outlines an Rs 20 billion fiscal consolidation blueprint through three major cost-cutting interventions:

Government Announces New Visa Bill, Women-Only Blue Buses, and Pay Hikes

The government has unveiled a series of new welfare and infrastructure measures in the federal budget for fiscal year 2026/27, including immigration reform, women-focused public transport, and salary increases for state employees. Presenting the budget in Parliament, Finance Minister Swarnim Wagle said a new visa bill will be introduced to simplify and digitize immigration procedures and create a more investment-friendly environment for foreign investors and businesses. The government also announced plans to launch CCTV-equipped “Blue Bus” services exclusively for women in the Kathmandu Valley to improve commuter safety. In addition, authorities pledged efforts to make Valley roads dust-free through improved road maintenance and mechanized cleaning. The budget further commits to regular salary and benefit increases for civil servants, security personnel, and public school teachers, with the government saying the move is aimed at improving efficiency, accountability, and employee morale.

Government to Scrap 31 Public Bodies, Restructure 18

The government has announced a sweeping administrative reform under the new federal budget, aimed at reducing state expenditure and improving efficiency. Presenting the budget for fiscal year 2026/27, the Finance Minister Swarnim Wagle said 31 public bodies will be dissolved and 18 others will be restructured as part of a broader effort to streamline government operations. The plan also includes cuts in unnecessary posts across government offices, with officials estimating savings of around Rs 20 billion in recurrent spending. The reforms are intended to make public institutions more efficient while redirecting resources toward development and infrastructure.

Government Raises Tax Exemption to Rs 1 Million

The government has announced a major tax overhaul aimed at easing financial pressure on taxpayers and simplifying the domestic tax system. Presenting the budget for fiscal year 2026/27, Finance Minister Swarnim Wagle said the individual income tax exemption limit has been doubled to Rs 1 million per year, a move expected to increase disposable income, particularly among salaried and middle-income groups. The budget also scrapped excise duties on 360 goods in an effort to reduce production costs and stabilize consumer prices.

Government Plans to Upgrade Major Hospitals into Medical Universities

The government has announced plans to develop three leading health institutions into international-standard medical universities. Presenting the federal budget for fiscal year 2026/27, Finance Minister Swarnim Wagle said Tribhuvan University Teaching Hospital, Bir Hospital under the National Academy of Medical Sciences (NAMS), and Patan Academy of Health Sciences (PAHS) will be upgraded and restructured as world-class medical universities. The government said the move aims to strengthen medical education, research, and healthcare services while positioning Nepal as a regional center for medical studies.

Customs Operations Ground Halts Ahead of budget presentation

The Department of Customs suspended all commercial cargo clearance protocols at national border border-gates today to facilitate real-time updates to automated fiscal tariff ledgers ahead of the afternoon budget presentation. Administrative directives dispatched to all regional customs checkpoints forced a complete freeze on processing entry manifests starting last night. Customs clearing offices confirmed that cross-border freight processing will remain paused until updated import duties, expanded health excise taxes on alcohol and tobacco products, adjusted value-added tax exemptions, and newly hiked import tariffs targeting electric vehicles are fully calibrated into national valuation databases.

Planned Service Outage Halts Traffic Fine Payment Network

The Kathmandu Valley Traffic Police Office confirmed that its digital citation processing network suffered a planned service outage today, Friday, beginning at 3:30 PM. The complete system blackout, which disrupted public fine collection modules for a duration lasting between four and 14 hours, was triggered by scheduled technical upgrades executed by the Financial Comptroller General Office. Engineers took the central Revenue Management Information System offline to perform backend database maintenance, temporarily blocking motorists from clearing outstanding traffic rule violation fines or processing digital vehicle documentation recovery requests through web-based transaction portals.

Ministry Drafts New Company Bill to Legalize Sweat Equity Structures

The Ministry of Industry, Commerce, and Supplies formulated the conceptual framework for the Company Law Amendment Bill, 2026 today, aiming to replace the outdated Company Act, 2006. The updated legal blueprint officially recognizes sweat equity as a legitimate corporate mechanism, allowing entrepreneurs to secure corporate share ownership through verified technical skills, intellectual property, and operational labor without requiring upfront cash investments. The reform framework transitions corporate administration into a fully paperless digital registry system, introducing advanced corporate governance instruments such as employee stock option programs, minority shareholder protection protocols, simplified market exit strategies for inactive corporations, and independent whistleblower protection channels.

Ministry Fiscal Survey Details Cooperative Financial Operations and Compensation Totals

The Economic Survey 2026/27 published by the Ministry of Finance today confirmed that national cooperative entities reached a total registration volume of 32,325 through mid-March 2026. The sector effectively mobilized member savings totaling Rs 1 .29 trillion and generated 82,216 direct jobs. Out of 23 distressed cooperative firms declared problematic by the federal government, three units have completed full liquidation asset clearances. Regulators logged 80,087 individual deposit compensation claims worth Rs 47.601 billion, with Rs 2.546 disbursed to completely settle 3,688 individual accounts.

Birgunj Customs Office Reports Merchandise Exports Reaching Rs 88 Billion

The Birgunj Customs Office published official trade data tracking economic performance through the first 10 months of the current fiscal year today, Friday. National merchandise exports totaled Rs 88.22 billion, marking an expansion from the Rs 83.25 billion registered during the same timeline last year. A commodity breakdown reveals processed soybean oil dominated outbound trade shipments at Rs 48.11 billion, followed by processed sunflower oil at Rs 5.35 billion, fruit juices at Rs 6.42 billion, woven textiles at Rs 3.03 billion, and synthetic yarn exports reaching Rs 2.25 billion.

Airport Commissions Parallel Taxiway to Mitigate Runway Congestion

The Civil Aviation Authority of Nepal (CAAN) officially commissioned a newly constructed western parallel taxiway at Tribhuvan International Airport today. Built under the Air Transport Capacity Enhancement Project, the newly paved runway-adjacent transit loop connects terminal gates, maintenance hangars, and aircraft aprons directly to the Pashupati side of the primary runway. Airport operational desks project that eliminating instances where commercial jets must back-taxi along the active strip will increase overall hourly runway capacity by 15 to 20 percent, dramatically reducing airborne holding times, conserving airline jet fuel, and accelerating passenger transit processing.

Upper Trishuli Hydro Project Completes First Spillway Weir Gate Installation

The developers of the 216 MW Upper Trishuli-1 Hydroelectric Project successfully completed the structural installation and mechanical testing of its primary spillway weir gate in Rasuva today. Managed by a consortium of South Korean enterprises under a direct foreign investment model, engineering teams from Doosan Enerbility commissioned the first of three massive hydro-mechanical flow control gates at Haku in the Amachodingmo Rural Municipality-1. The overall multi-billion-rupee project has reached an absolute physical progress milestone of 82 percent, following the total completion of its 9.5 kilometer primary headrace tunnel, and remains on track to supply 1.53 billion annual kilowatt-hours to the Nepal Electricity Authority.

Hill Station Hotels Register Surging Occupancy

Regional hospitality ledgers published in Palpa today showed that tourist hotels across Tansen and surrounding hill stations achieved high room occupancy rates as domestic travelers fled rising temperatures in lowland cities. Hotel Association Palpa tracked massive weekend arrivals arriving from urban centers including Butwal and Bhairahawa. Tourism tracking metrics indicate a shift where domestic travelers extended typical one-night stays into two-night packages. However, trans-border automotive arrivals from India dropped significantly, a contraction which travel operators attributed directly to recent fuel price hikes that increased long-distance driving costs for private holidaymakers and cross-border tour buses.

Jumla Infrastructure Expansion Upgrades Gididaha Lake Tourism Hub Logistics

The Karnali Province government intensified infrastructure development projects at Gididaha Lake in Jumla today, aiming to scale up arrivals at the high-altitude tourist destination situated 3,485 meters above sea level. Following momentum from the regional tourism summit of 2022, rural development bureaus constructed mountain trekking trails, public rest houses, clean drinking water systems, and sanitation facilities. Logistical tracking confirms the completion of a specialized eco-homestay facility at Phulchaulya Patan, which was built via a Rs 1.5 million provincial treasury grant. Physical dimensions recorded by the National Lake Conservation Committee map the body of water at 1,510 meters long and 42.8 meters deep.

Valley Traffic Police Penalize Thousands of Motorists for Rules Violations

The Kathmandu Valley Traffic Police Office reported today, Friday, that automated and manual enforcement sweeps penalized 1,957 motorists for violating municipal traffic codes over the past 24 hours. The administrative fines generated Rs 1 million in immediate public treasury revenues. The enforcement catalog cited citations issued against 23 motorists for driving under the influence, 144 operators for unauthorized ride-sharing actions, 185 drivers for running traffic signals, 181 for speeding violations, 87 for lane indiscipline, 91 for illegal horn usage, and 111 for parking vehicles on pedestrian walkways.

Fuel Cost Escalation Inflicts Rs 10 Billion Loss on Construction Sector

The Federation of Contractors’ Associations of Nepal (FCAN) reported today, Friday, that intense international fuel price hikes linked to ongoing Middle East conflicts inflicted a combined Rs 10 billion financial loss across domestic infrastructure projects. Structural cost accounting shows the industry absorbed a Rs 4 billion loss on bitumen alongside a Rs billion loss on commercial diesel fuel. Fleet logistics data shows retail diesel surged from Rs 139 to Rs 225 per liter, while bulk bitumen spiked from Rs 75 to Rs 155 per kilogram, endangering the completion of 30,000 public development contracts.

Japan and Nepal Jointly Fund Fast Track BP Highway Reconstruction

The Ministry of Physical Infrastructure and Transport accelerated rehabilitation works on the disaster-damaged BP Highway today, initiating construction across 30 kilometers of eroded roadway ruined by catastrophic monsoon floods eight months ago. The logistical link is being rebuilt under a fast-track project model utilizing co-investment capital from the Japan International Cooperation Agency (JICA) and state funds. Japan provided a flat grant of JPY 2.80 billion to restore the critical 3.2 kilometer Piple-Barkhekhola stretch via the Shimizu Corporation. Concurrently, the government of Nepal cleared Rs 8 Arba 50 Crore [8,500,000,000] in matching domestic capital to upgrade five bridges to dual lanes.

National Statistics Office Registers Economic Profiles for 1 Million Businesses

The National Statistics Office finalized its second national economic census data pipeline today, successfully recording verified financial data profiles for 1,020,904 operating business establishments. Deploying a specialized tracking network of 3,906 field enumerators and 526 supervisory managers across national municipal wards, the state bureau targeted industrial, commercial retail, and corporate service sectors. Field reports indicate that 3,679 enterprises self-reported their corporate bookkeeping data using integrated online portals through May 27 steering overall census program execution to a 70 percent completion rate compared to the benchmark pilot assessment conducted back in 2018.

Gold Traded at Rs 290,600, Silver Rs 5,040 Today

The prices of gold and silver have increased in the market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has increased by Rs 5,600 per tola (11.66 grams) today, with trading currently taking place at Rs 290,600 per tola. On Thursday, gold was traded at Rs. 285,000 per tola. Similarly, the price of silver has also gone up. According to the Federation, silver is being traded at Rs 5,040 per tola on Friday, following an increase of Rs 175 per tola. On the previous day, silver was bought and sold at Rs. 4,865 per tola.