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:

Construction Halted In Bagmati Province Due To Soaring Fuel And Material Costs: 

The Bagmati Province Contractors Association has stated that construction work has come to a standstill due to price hikes in fuel and construction materials caused by the tense situation in West Asia. The federation claims that it is impossible to proceed with development and construction work due to the excessive and unexpected increase in the prices of fuel and construction materials. Addressing a press conference in Hetauda on Sunday, the association demanded that the government immediately extend the deadline for all projects due to the current situation. Association Chairman Chhatra Bahadur Tamang said that the construction industry is on the verge of collapse due to the tsunami of scarcity and price hikes of construction materials, making it imperative to extend the deadline for all types of contracts. According to him, the prices of essential materials such as diesel, petrol, kerosene, bitumen, cement, and iron rods have increased significantly, especially due to the ongoing war in the Middle East. He stated that all projects, from national pride projects to small and large ones, have been affected due to the scarcity of construction materials in the market. He mentioned that this problem in the field of physical infrastructure has started to have a serious impact on the overall economy of the country.

Sudurpashchim Hydropower Potential Largely Untapped Despite Huge Capacity:

Sudurpashchim Province, home to Nepal’s three major river basins—Mahakali, Seti, and Karnali—has utilized less than one per cent of its vast hydropower potential, raising concerns among government, investors and policymakers. Speaking at an interaction program titled “Possibilities and Challenges of Hydropower Project Development in Sudurpashchim” held in Kathmandu recently, Ganesh Karki, President of the Independent Power Producers’ Association, Nepal (IPPAN), highlighted the stark gap between potential and production. “Sudurpashchim has the capacity to generate at least 18,149 MW of electricity, yet only 176 MW is currently being produced. This reflects serious structural and policy challenges,” Karki said. He noted that the province alone accounts for nearly 20 per cent of Nepal’s estimated 83,000 MW of hydropower potential and holds strategic importance due to its proximity to India, offering a shorter route for electricity exports. However, inadequate transmission infrastructure and restrictive government policies have hindered progress. Karki urged the government to extend hydropower project licenses to 50 years, streamline forest clearance procedures, and introduce a one-window system to replace the current process that requires approvals from over 14 ministries and 30 departments.

Gufapatal Blooms Draw Crowds of Tourists:

According to Bijay Lawati, Secretary of the Gufapatal Tourism Committee, the site becomes especially crowded when the flowers are in full bloom. Situated at an altitude of approximately 2,024 meters above sea level, Gufapatal is currently bustling with both Nepali and Indian tourists. Visitors are drawn to the area for leisure and to enjoy the scenic beauty enhanced by the seasonal flowers. The Tourism Committee has developed a park with a view tower and flower garden across seven ropanis of land on Gufapatal hill.

Fertilizer Sacks Pile Up At Tatopani: 

At a time when farmers are facing a shortage of fertilizers for use in their fields, around 30,000 sacks of chemical fertilizer have been lying unused for years at the Tatopani Dry Port and Customs Office. According to Tul Bahadur Pandey, Information Officer at the Tatopani Customs Office, a total of 29,826 sacks of urea fertilizer have been stored in the customs warehouse for years. As approximately 1,400 tons of fertilizer has remained unused for so long, they have now reached a condition where they are no longer usable. The fertilizer was jointly imported from China by Sinomax-Silk Market, Global Matrix, and Bidh Pvt. Ltd. under Silk Company, in agreement with the Agricultural Inputs Company Limited (AICL). In the fiscal year 2022/23, there was a contract to import 735,000 sacks of urea fertilizer. However, when the company failed to deliver the fertilizer on time as per the agreement, its deposit was confiscated as a penalty and the company was blacklisted.

Price of Gold Hits Rs 299,200 Per Tola:

Gold prices increased in the Nepali market on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 2,700 per tola today. The Federation has set the price of fine gold at Rs 299,200 per tola for today. On Friday, gold was traded at Rs 296,500 per tola. According to the Federation, the price of silver increased by Rs 50, reaching Rs 4,995 per tola today. Last Friday, silver was traded at Rs 4,945 per tola.

InDrive Rewards Top Drivers with EV Cab, Scooters:

Global ride-hailing platform inDrive has awarded top-performing driver partners with an electric cab and e-scooters under its Platinum Driver Giveaway campaign. The campaign, held from March 2 to 29, recognized drivers maintaining high service standards and consistent performance. Peshal Budhathoki won the TATA Xpres-T electric cab in the car category, while Samden Tamang and Saroj Khatiwada received Yadea VLX e-scooters in the bike category. The company also distributed additional rewards, including smartphones and staycation packages, to other participants. InDrive said it has also launched an Rs 2.7 million fuel support initiative from April 15 to assist driver partners amid rising operational costs.

Peak Power Demand at All-Time High of Over 256 GW On Saturday As Mercury Levels Soar:

India’s peak power demand hit an all-time high of 256.11 GW on Saturday due to an intensifying heat wave, which increased the use of cooling devices such as air conditioners and desert coolers, according to the latest power ministry data. The peak power demand on Saturday eclipsed the previous record of 252.07 GW, hit just a day earlier on Friday, April 24, at 1548 hours. According to the power ministry data, peak power demand set a new high of 256.11 GW at 15:38 hours on Saturday, and it was fully met. Experts stated that peak power demand is inching towards the power ministry’s estimate of 270 GW for this summer season, as mercury levels have begun to rise. Temperatures in several regions have been significantly above normal – by 5 degrees Celsius or more – indicating a developing heat stress scenario across parts of the country, according to the India Meteorological Department.

MetLife Nepal Expands Services To Jumla:

MetLife Nepal has expanded its services to Jumla, aiming to improve access to insurance and financial services in one of the country’s remote regions. The company has opened a local agency office to provide customer support, promote financial literacy and create employment opportunities in the district. As part of its community support, MetLife Nepal, in partnership with Surya Social Service Society, has provided smart boards to Chandannath Higher Secondary School and Janata Secondary School to enhance classroom learning. The company is also conducting insurance awareness programs targeting local youth to encourage financial planning and security.

Nepal’s New Energy Strategy Targets Growth, Exports and Reform Push:

The government has identified 13 major challenges in Nepal’s energy sector and concluded that addressing them will require effective initiatives, diversified investment, and legal reforms. Weak capacity and poor quality in the power distribution system, along with the lack of reliable electricity supply for industries, remain key concerns. Rising use of high-energy-consuming devices in households and businesses has also been flagged as a challenge. So has the need to expand electricity use in agriculture, irrigation, and industry, along with the lack of infrastructure for electric vehicle charging. The government has also pointed to the slow development of energy-intensive industries such as data centers, green hydrogen, fertilizer production, and modern brick kilns. Another challenge lies in exporting surplus electricity, once domestic demand is met, to bilateral, sub-regional, and regional markets. For that, sufficient development of domestic and cross-border transmission lines and related infrastructure is essential.

How A Ward Official’s Idea Changed The Identity Of Reshgaon Into ‘Tea Village’:

As outmigration increased in Reshgaon, the upland agricultural fields began to be covered with bushes. Worried as the land in the village started to turn fallow day by day, the local ward chairperson, Prem Lamichhane, devised a plan to cultivate tea on these upland fields. Currently, Ward Chairperson Lamichhane’s strategy has paid off and started to become a strong means of income generation. Not only that, the identity of Reshgaon itself has begun to change. Nowadays, Reshgaon has become known as a tea village. In Reshgaon, located in Ward No. 7 of Kathekhola Rural Municipality in Baglung, tea cultivation is spreading, attracting the other locals as well. After the tea cultivation started seven years ago began to flourish, villagers have started planting tea even on barren land. The locals who were ready to migrate from the village earlier have now thought of staying back. The tea gardens near the village have not only brought happiness to the villagers but have also started contributing to their income.

India, New Zealand to Ink Free Trade Pact on April 27; Aim to Double Bilateral Trade:

More than four months after announcing the conclusion of negotiations on December 22 last year, India and New Zealand are set to sign their free trade agreement on April 27, aimed at doubling bilateral trade between the two countries. The pact will give India companies duty-free access to the island nation’s markets, and bring in USD 20 billion of investment over the next 15 years. The pact will be signed in the presence of Indian Commerce and Industry Minister Piyush Goyal and Todd McClay, New Zealand’s Minister for Trade and Investment, at Bharat Mandapam, according to the India’s commerce ministry. The deal will also give India more temporary employment visas, easier access for pharmaceuticals and medical devices. While the agreement will eliminate or reduce tariffs on 95 per cent of New Zealand’s exports of items ranging from wool, coal, wood, wine, to avocados and blueberries to India, New Delhi made no concessions on allowing imports of dairy, onions, sugar, spices, edible oils and rubber to protect farmers and domestic industry.

Hormuz Disruption, USD 100 Oil Pose Risks to India’s Inflation, Rupee: Union Bank:

The ongoing West Asia conflict and disruptions in the Strait of Hormuz are emerging as a major risk for the Indian economy, with elevated crude oil prices likely to pressure inflation, the rupee, and the current account, according to a report by Union Bank of India. The report titled “From Hormuz to the Rupee: War, Oil and the Global Repricing of Risk” said that with the Strait of Hormuz “still functionally shut and Brent trading above $100/bbl, the backdrop does not bode well for global or domestic macros and markets.” It added that “higher oil keeps inflation risk alive, delays central-bank easing, pressures current accounts, tightens financial conditions, and weighs on risk assets, especially in energy-importing economies,” underlining the vulnerability of countries like India.

Mcap Of 7 Of Top-10 Most-Valued Firms Erodes By IRs 2 Trillion; TCS Biggest Laggard:

The combined market valuation of seven of the top-10 most-valued Indian firms eroded by IRs 2 trillion last week, with Tata Consultancy Services and Reliance Industries emerging as the biggest laggards, in-tandem with a bearish trend in equities. Last week, the BSE benchmark Sensex tanked 1,829.33 points, or 2.33 per cent, and the NSE Nifty dropped 455.6 points, or 1.87 per cent. “Markets ended lower after two consecutive weeks of gains, weighed down by heightened geopolitical tensions and weak earnings commentary from IT majors,” Ajit Mishra — SVP, Research, Religare Broking Ltd, said. Global developments continued to dominate market direction, with ongoing uncertainty around the West Asia crisis and concerns over supply disruptions keeping crude oil prices elevated, he added. The combined market valuation of seven of the top-10 most valued firms dropped by over IRs 2.053 trillion.

India’s IIP Growth Likely Slowed To 2% in March As Energy Sector Weakens And Exports Slip: UBI:

India’s Index of Industrial Production (IIP) growth is expected to have moderated sharply to 2% year-on-year in March 2026, down from 5.2% in February and 3.9% in March 2025, as broad-based weakness in manufacturing and energy sectors weighed on output amid rising input costs and supply disruptions, according to a research report by Union Bank of India. The report said that, the slowdown reflects the impact of higher input costs on production margins and demand, even as some high-frequency indicators showed mixed resilience. The core sector, which contributes nearly 40% to IIP, contracted by 0.4% in March, marking its lowest level in 19 months compared to a revised 2.8% growth in February and 4.5% expansion in March 2025. Natural gas, refinery products, steel and cement recorded positive year-on-year growth, but coal, crude oil, fertilizers and electricity declined. On a month-on-month basis, only fertilizer production fell sharply, by 25.9%. High-frequency indicators painted a mixed picture. E-way bill generation continued to show double-digit growth at 12.9% in March, though slower than 18.8% in February, supported by GST rate rationalization and strong goods movement. GST revenue also rose to 8.8% from 8.1% in February, reflecting sustained consumption and improved compliance.