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:

NRB Mopped Up Rs 120 Billion Excess Liquidity Today

The Nepal Rastra Bank (NRB) mopped up Rs 120 billion from the banking system today to manage excess liquidity. Using the deposit collection instrument, the NRB held a bidding session at 3:00 PM this afternoon. Eligible Class ‘A’, ‘B’, and ‘C’ financial institutions were allowed to bid for a minimum of Rs 100 million. The central authority accepted bids at multiple interest rates for this 19-day deposit collection tool. The principal and interest for this transaction are scheduled for payment on May 13. This move was necessitated by the high volume of investable funds currently sitting idle within the domestic banking sector.

NEPSE Ends Week with Marginal Gain, Turnover Reaches Rs 5.27 Billion

The Nepal Stock Exchange edged up 1.54 points or 0.05 percent on Friday to close at 2,788.70, ending a four-day losing streak. The Sensitive Index slipped 0.04 percent to 468.07, while float indicators were mixed. A total of 11.27 million shares of 351 companies were traded through 75,229 transactions, generating turnover of Rs 5.27 billion. Share prices of 87 companies rose, 168 declined, and 14 remained unchanged. Six of 13 sector indices gained, led by manufacturing and processing, trading, and hydropower. Losses were seen in finance, microfinance, life insurance, and others, with the other groups’ index posting the steepest decline.

Oil Corporation to Allow Full Cylinder Gas Sales for 20 Days

The Nepal Oil Corporation (NOC) has decided to resume the sale of full LPG cylinders starting next week to address a buildup of imported stocks. The decision follows a previous restriction to half-cylinders implemented in late March due to supply concerns from West Asian tensions. However, as LPG imports dropped by 24.20% from 51.1 million kg in March to 38.7 million kg in April, over 10,000 metric tons of gas remain held at plants, and 250 LPG bullet trucks are stalled at customs. This temporary policy shift, expected to last 15 to 20 days, aims to clear the supply glut and reduce costs for industrialists.

NRB to Expand Deprived Sector Lending to Include Startups

The Nepal Rastra Bank (NRB) is preparing to expand the scope of deprived sector lending while maintaining the mandatory requirement for banks and financial institutions to invest 5% of their total loan portfolio in this sector. To ease the pressure on banks facing a decline in credit demand, the central bank plans to include startups and collateral-free loans up to Rs 2.5 million within the “deprived sector” definition. Currently, the portfolio has shrunk by 6.8% in the first eight months (July 17, 2025, to March 14, 2026) of the fiscal year 2025/26, dropping from Rs 296 billion in July to Rs 276 billion. The move aims to boost financial inclusion and job creation while providing banks with more diverse investment avenues.

Minister Guarantees Adequate Fertilizer Supply for Summer Planting

Minister of Agriculture and Livestock Development Gita Chaudhary assured the National Assembly today that there will be no shortage of chemical fertilizer for the upcoming summer rice planting season. Speaking at a meeting of the Federalism Strengthening and National Concerns Committee, the minister confirmed that the government has secured sufficient stocks for the immediate planting period and is working to procure additional supplies for post-planting needs. The government’s 100-point reform plan also includes a focus on soil health, introducing Soil Health Cards to encourage the use of organic and biological fertilizers. The Ministry is also reviewing subsidy distribution to ensure it reaches genuine farmers while coordinating the supply of high-quality seeds.

Private Sector Urges Government to Create Investment-Friendly Climate

Three major private sector representative bodies, the Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries, and the Nepal Chamber of Commerce, issued a joint press release today calling for the protection and promotion of the private sector. The organizations emphasized that following the formation of the new government, activities that discourage investors could negatively impact revenue, employment, and the overall supply chain. The statement warns that demoralizing the private sector, which contributes significantly to job creation and infrastructure, could push the banking sector and the national economy toward a crisis. They urged the government to ensure economic stability and a secure environment for business growth.

Department of Transport Tightens Weight Limits for Freight Vehicles

The Department of Transport Management issued a notice yesterday, strictly enforcing weight limits for freight vehicles to protect road infrastructure. According to the Freight Vehicle Operation Guidelines, 2018, rigid trucks are limited to 35 tons and trailers to 55 tons, with specific limits set for two to six-axle vehicles. All cargo trucks must undergo mandatory weighing at origin and destination bridges, and those exceeding limits will face fines, vehicle impoundment, and legal action. While transport entrepreneurs support the move to reduce road damage and accidents, they noted that similar notices have been issued eight times in the last five years with limited successful implementation.

Stricter Customs Enforcement Boosts Domestic Markets in Dhangadhi

The strict implementation of customs duties on goods worth over Rs 100 has significantly boosted domestic trade in Dhangadhi. Previously, thousands of Nepalis crossed the Trinagar border daily to shop in the Indian market of Banagau, but this trend has declined as goods now carry mandatory duties, making them similar in price to local products. Under the Customs Act, 2024, the passenger branch collects revenue for items up to Rs 5,000, while higher values require office head approval. Despite the crackdown, smuggling persists; authorities seized goods worth Rs 1.2 million in the last six days alone. While the move supports local businesses, concerns have been raised regarding the impact on low-income families due to rising prices in Nepali markets.

Truck Imports Through Belhiya Rise by 136% as Bus Demand Falls

Truck and mini-truck imports through the Belhiya border surged by 136.27% during the first nine months (July 17, 2025, to April 13, 2026) of the fiscal year 2025/26. A total of 613 trucks entered compared to 324 in the same period last year, generating Rs 733.8 million in revenue. Conversely, bus and mini-bus imports dropped to 212 units from 316, leading to a 32.88% decline in related revenue. Motorcycle imports also rose significantly, with 133,971 units entering, up from 101,029. The shift is attributed to the rising popularity of Electric Vehicles (EVs) on short routes and the higher costs of Euro VI standard diesel buses.

Demolition for Road Expansion Halts Economic Activity in Birgunj

Economic transactions in Birgunj have come to a standstill following the demolition of structures for a road expansion project. Starting April 19, excavators began removing buildings within 25 meters of the road center along the Gandak Chowk to Miteri Bridge section. This followed a Supreme Court ruling on March 12, 2025, that cleared legal hurdles for the expansion. The demolition has caused power outages and water shortages, severely impacting businesses already struggling since the pandemic. Business leaders expressed concern that while expansion is necessary, the lack of a clear timeline for reconstruction and the sudden loss of commercial space may turn the city into a “dead city,” discouraging future private investment.

Syangja Spends 77% of Federal and 33% of Provincial Budget

In the first nine months (July 17, 2025, to April 13, 2026) of the fiscal year 2025/26, Syangja district spent 77.26% of its federal budget and 32.75% of its provincial budget. Out of the total federal allocation of Rs 7.842 billion, a total of Rs 6.09 billion was paid out. For the provincial budget of Rs 2.624 billion, only Rs 859.4 million has been utilized. Capital expenditure remains weak, particularly for infrastructure, water supply, and irrigation offices, with provincial capital spending at just 26.84%. Officials stated that capital expenditure appears low because payments are often settled only after construction milestones are fully completed.

Department Fines Five Firms Rs 1.4 Million Near Airport Area

The Department of Commerce, Supplies, and Consumer Protection conducted a surprise inspection at Tribhuvan International Airport yesterday, fining five firms a total of Rs 1.4 million. Major penalties of Rs 300,000 each were imposed on Sun Enterprises, Oriental Hotels, T3 Thakali Group, and Sai Kiran Enterprises for violating the Consumer Protection Act, 2018. Violations included selling items above the Maximum Retail Price (MRP), double-sticker pricing, and selling expired goods or those containing harmful food coloring. Additionally, Hotel Soniga was fined Rs 205,000, while Soaltee Hotel has been summoned to provide a written explanation and business documents within 24 hours.

Labor Assistance Desk at Airport Now Operates 24 Hours Daily

The Ministry of Labor, Employment and Social Security has expanded the operation of the Labor Assistance Desk at Tribhuvan International Airport to a 24-hour schedule across three shifts. Previously operating in two shifts, the desk now utilizes 11 staff members to facilitate departing and returning migrant workers. The facility provides essential information on legal procedures, contact details for Nepali embassies abroad, and guidance to prevent workers from being defrauded. This initiative is a collaborative effort between the Department of Foreign Employment, the Foreign Employment Board, and the National Network for Safe Migration to ensure a safer environment for workers transitioning through the national gateway.

Public Buses to Nuwakot and Dhading Move to New Bus Park

Public vehicles operating between Kathmandu and the districts of Dhading, Nuwakot, and Rasuwa began operating exclusively from the New Bus Park in Gongabu today. This follows a decision by the Kathmandu Metropolitan City to remove bus counters and parking from the Machhapokhari and Balaju roadsides to improve traffic management. While most long-distance buses already used the 81,905.98 square meter national park, these specific routes had previously resisted the move. Authorities believe this change will significantly reduce congestion along the Ring Road. Lhotse Multipurpose has established separate tracks and ticket counters within the New Bus Park to accommodate these vehicles and their passengers.

Government Implements Strict Quality Standards for ‘Gundruk’

The Ministry of Agriculture and Livestock Development has introduced mandatory quality and hygiene standards for Gundruk, a popular Nepali fermented leafy green vegetable dish. Under the Food Hygiene and Quality Act, 2024, the use of iron, aluminum, copper, or brass containers for fermentation is strictly prohibited. The standards mandate that Gundruk must be free from mold, insects, hair, stones, and plastic. Chemically, dry Gundruk must not exceed 12% moisture and 1% acid-insoluble ash. Additionally, it must contain zero E. coli bacteria. Packaging must now be food-grade, dry, and labeled with the specific type of greens used, such as mustard, radish, or rayo (mustard greens), along with the production details to ensure consumer safety.

Farmer Interest in Early Spring Paddy Declines in Lumbini

Farmer attraction toward early spring paddy cultivation in the plains of Lumbini Province is gradually decreasing. According to the Lumbini Province Agriculture Development Directorate, the cultivation area shrank from 3,038 hectares in the previous year to 2,677 hectares last year, marking a decline of 411 hectares in a single year. In Bardiya, the area dropped from 1,450 hectares to 1,201 hectares, while Kapilvastu saw a decrease from 10 hectares to just 5 hectares. Farmers are shifting toward cash crops like sugarcane and winter maize due to lower labor costs and higher profits. Despite the shrinking area, total rice production in the province for the fiscal year 2024/25 reached 1.3 million metric tons across 298,622 hectares, with an average productivity of 4.52 tons per hectare.

Over 1,000 Citizens Receive Border Passes for Kimathanka Crossing

Since the reopening of the Kimathanka border point on May 25, 2024, the Sankhuwasabha District Administration Office has issued 1,338 border passes to local citizens. During the fiscal year 2024/25, at least 1,082 passes were distributed, followed by 256 more in the current fiscal year. Additionally, 648 passes have been renewed. These passes allow residents of Bhotkhola and Makalu rural municipalities to cross into Chinese markets to purchase daily essentials and seek employment in Changa Bazar. The border had been closed since January 19, 2020, due to the pandemic. Although the Khandbari-Kimathanka road is under construction, the 162-kilometer distance currently requires a two-day trek from the nearest road head.

Rs 4.5 Million Grant Allocated for 18 Homestays in Baglung

The Sustainable Tourism Promotion Project has provided a grant of Rs 4.5 million to establish and upgrade 18 homestays in the Nisikhola and Dhorpatan areas of Baglung. Specifically, 14 houses in the Pakhathar Community Homestay in Dhorpatan Municipality-9 and four houses in the Budhathok Nakha Community Homestay in Nisikhola Rural Municipality received Rs 250,000 each. The initiative aims to boost youth entrepreneurship, make women self-reliant, and ensure organized, tourist-friendly services in the region. The project eventually plans to manage 20 homestays in Dhorpatan and 10 in Nisikhola to promote local tourism.

Hetauda Cement Industry Shuts Down Due to Raw Material Crisis

The Hetauda Cement Industry, which has been facing a long-term economic crisis, has shut down its operations due to a severe shortage of raw materials. Despite having a production capacity of 16,000 bags of cement daily, the factory lacked essential supplies like coal and stones. Although contracts for raw materials were in place, contractors reportedly failed to deliver due to a lack of funds. Currently, the industry is only packaging 5,000 tons of clinker produced last month. The financial distress is so severe that the industry’s 166 permanent, 100 daily wage, and 52 security personnel have not received salaries for 10 months. Established in 1977, the factory began production in the fiscal year 1986/87 but has recently struggled with machine maintenance and operational costs.

6 Non-Life Insurers Cross Rs 3 Billion Premium Mark by April

The non-life insurance sector has seen a surge in competition following recent mergers, with six companies collecting over Rs 3 billion each in premiums by April 13. Shikhar Insurance leads the market with Rs 4.80 billion, followed by Sagarmatha Lumbini Insurance at Rs 3.83 billion and Himalayan Everest Insurance at Rs 3.74 billion. Siddhartha Premier, IGI Prudential, and NLG Insurance also surpassed the 3 billion threshold. Overall, 14 non-life insurers collected Rs 36.28 billion in the first nine months (July 17, 2025, to April 13, 2026) of the fiscal year 2025/26, a 13.86% increase, issuing over 2.2 million insurance policies.

Taksar Pikhua Khola Hydropower to Issue IPO from May 6

The Taksar Pikhuwa Khola Hydropower Company is set to open its Initial Public Offering (IPO) for the general public starting May 6. The company received approval to issue 35.26% of its issued capital, worth Rs 423 million, totaling 4,230,668 shares. Out of this, 2,515,455 shares worth Rs 251.5 million are reserved for the general public. Previous allocations included 1.2 million shares for project-affected locals and 303,067 shares for Nepalis in foreign employment. Investors can apply for a minimum of 10 to a maximum of 50,000 shares until May 11.

Gold and Silver Prices Drop Today

Gold prices in the market declined on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 2,200 per tola (11.66 grams), bringing it down to Rs 296,500. On Thursday, gold was traded at Rs 298,700 per tola. Similarly, silver prices also decreased. The price of silver dropped by Rs 75 per tola, and it is now being traded at Rs 4,945. On Thursday, silver was traded at Rs 5,020 per tola.