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:

Relief of Rs 100K Announced for Baitadi Bus Victims

The Sudurpashchim Provincial Government decided on Friday to provide Rs 100,000 in relief to the families of those deceased in the Baitadi bus accident. Minister of Internal Affairs and Law Hira Sarki announced the decision following a cabinet meeting. The accident, involving a bus, occurred on Thursday evening in Purchaudi Municipality-7, resulting in 13 deaths and 34 injuries. The government has committed to providing free medical treatment at government hospitals for the injured, who are currently receiving care in Dadeldhura, Dhangadhi, and Bajhang.

Commercial Banks Average 8.25% Return on Equity

In the first six months of the current fiscal year, commercial banks recorded an average Return on Equity (ROE) of 8.25%. Data shows a slight improvement from 8.02% during the same period last year. Nabil Bank saw the highest increase, reaching 14.54%, while NIC Asia Bank recorded the lowest at 0.90%. Out of 20 banks, 10 saw a decline in ROE, including Everest and Standard Chartered. Bankers noted that low returns, rising bad loans, and decreased credit flow have prompted some promoters to exit the sector. Investors are increasingly shifting capital toward more profitable industries as banking faces mounting regulatory and operational challenges.

Capital Expenditure of Development Ministries Remains Disappointing

The Financial Comptroller General Office released data showing that none of the 12 major development ministries reached 30% capital expenditure by mid-January. The Ministry of Culture, Tourism, and Civil Aviation recorded the lowest at 2.68%, spending only Rs 130 million of its Rs 4.84 billion budget. The Ministry of Physical Infrastructure and Transport, with the largest allocation of Rs 1.44 billion, spent Rs 25.58 billion (17.72%). Ministry officials attributed the sluggish spending to the Gen Z protests, festive holidays, and frozen funds. The Ministry of Finance is now coordinating with lagging ministries to accelerate payments for completed projects.

Milk and Butter Smuggled to India Amid Price Hikes

The Central Dairy Cooperative Association reported an increase in the illegal export of milk and butter to India through border points in Sarlahi, Parsa, and Rupandehi. Vice Chairman Bhagirath Timilsina noted that smugglers are using informal routes to capitalize on higher milk prices in India, where rates have surpassed Nepal’s average of Rs 90 per liter. The Dairy Development Corporation (DDC) confirmed that its butter stock dropped from 800,000 kg to 400,000 kg as collections dwindled. While Nepal produces 7.5 million liters of milk daily, authorities expressed concern that informal cross-border trade is disrupting the domestic supply chain and formal collection centers.

Nepal Imports Rs 2.673 Billion Worth of Millet

Despite rising health awareness and domestic demand, the country imported millet worth Rs 2.673 billion over the last four and a half years. Data from the Department of Customs shows that in the first seven months of the current fiscal year 2025/26, the country imported around 7.4 million kg of millet worth Rs 375.9 million from India, China, and Qatar. Production has declined from 339,000 metric tons in 2021/22 to some 300,732 metric tons in 2023/24. The Ministry of Agriculture has allocated Rs 60 million to 88 local units to promote indigenous crops and reverse the production slump.

Hetauda Revenue Office Collects Rs 3.279 Billion

The Inland Revenue Office in Hetauda collected Rs 800.8 million in the past month, bringing its six-month total to Rs 3.279 billion. This marks an increase of Rs 88.6 million compared to the same period last year. According to the office, the excise duty contributed Rs 1.886 billion, while income tax brought in Rs 593.2 million. The office successfully recovered Rs 100 million in arrears through aggressive door-to-door campaigns and SMS alerts. Currently, 33,596 income taxpayers and over 81,000 individual taxpayers are registered at this branch.

Ministry Plans Mandatory Use of Domestic Wood in Government Buildings

The Ministry of Forests and Environment is drafting guidelines to mandate the use of Nepali wood in all government buildings. Spokesperson Bishal Ghimire and Minister Madhav Prasad Chaulagai confirmed that the policy aims for implementation before the upcoming elections. While Bagmati Province adopted a similar rule on April 24, 2024, the federal government seeks to standardize quality and supply across all seven provinces. The policy faces challenges regarding production capacity and market competition with imported steel and UPVC. Officials are considering a provision allowing domestic wood even if it is 15% more expensive, aiming to promote local industry and sustainable forest management practices.

Nagdhunga Tunnel Operation Delayed to Mid-April 2026

Nagdhunga Tunnel Operation Delayed to mid-April 2026 The Nagdhunga to Sisnekhola Tunnel project faces a three-month delay, with the new operation target set for mid-April 2026. Heavy rains in October 2025 triggered a massive landslide at the western portal in Dhading, damaging three out of five approach road lanes and stalling toll plaza construction. Consequently, the project sought an additional Rs 5.7 billion from JICA, raising total costs toward Rs 27.7 billion. Currently, 10 international joint ventures, including six Chinese, three Indian, and one Turkish firm, are competing for the five-year management contract. JICA has reportedly advised against selecting blacklisted or state-owned Chinese companies for the 150-staff operation.

Immigration Department Expels 333 Foreign Nationals

The Department of Immigration has arrested and expelled 333 foreign nationals over the last six months for engaging in illegal activities while on tourist or business visas. Between mid-July 2025 and January 14, individuals were caught operating illegal marriage bureaus or involved in unauthorized religious proselytizing. Director Tikaram Dhakal noted that offenders were fined and banned from re-entering Nepal for specific periods. To tighten monitoring, the Foreign National Management Information System (FNMIS) was launched on January 1, requiring hotels and travel agencies to link their records with the department to track foreign movements for national security.

11th Nepal Buildcon International Expo Opens in Kathmandu

The 11th Nepal Buildcon International Expo was inaugurated on Friday at Bhrikutimandap, Kathmandu. Organized by Media Space Solutions and Futurex Trade Fair, the event features over 300 national and international brands across 200 stalls. The exhibition showcases modern construction technologies, including architectural hardware, sanitary ware, and heavy machinery. Running until February 8, the expo aims to connect Nepali builders and engineers with global innovations. Sponsored by Flybird Interior and Lumbini Ceramics, it serves as a platform for industry professionals to explore sustainable materials and advanced infrastructure solutions for the domestic market.

First Rs 1.2 Billion Five-Star Resort to Be Built in Mahottari

The Satya Group announced on Friday the construction of the Shangri-La Premier Resort and Casino in Prakouli, Mahottari, with an investment of Rs 1.2 billion. Managing Director Dharma Mandal stated the luxury project will include 75 international-standard rooms, a premium casino, and a banquet hall. The project is funded by 70% bank loans and 30% equity. Expected to generate 200 local jobs, the resort aims to transform the Jaleshwar-Janakpur region into a major tourism hub near the Indian border. Land acquisition is complete, and the facility is designed to attract international tourists and corporate conferences.

Lumbini Province PSC Invites Job Applications

The Lumbini Province Public Service Commission has announced vacancies for various positions in administration, engineering, agriculture, and health. Interested Nepali citizens can apply through the official electronic system until February 26. The application fee is set at Rs 400, with an additional Rs 150 per extra group. Age limits are capped at 35 for males and 40 for females and health service applicants. Late applications with double fees will be accepted until March 5, providing a final opportunity for eligible candidates to enter provincial civil service.

Ministry Requests Data on Local Agriculture Technicians

The Ministry of Agriculture and Livestock Development issued a notice on Thursday, requesting detailed data on agriculture and livestock technicians across all local levels. The ministry’s Budget and Program Branch aims to update records under the Local Level Agriculture Graduate Technician Operation Procedure 2026. Local units must submit details of contracted staff, including appointment letters and contract renewals, via email by February 22. This initiative, approved by the Secretary on February 5, seeks to enhance future budget management and program effectiveness.

Reena Dangol Appointed Interim MD of Nepal Telecom

Chief Technical Officer Reena Dangol was appointed as the Interim Managing Director of Nepal Telecom effective from Friday. The decision was finalized by the Prime Minister and the Ministry of Communication and Information Technology. Dangol, an electronics engineer who joined in the fiscal year 1994/95, assumed her post on Friday. With a 30-year career, she previously led provincial directorates in Biratnagar and Kathmandu. Upon taking office, she pledged to modernize the company’s technology and enhance financial capability while meeting the priorities of the government and customers in a competitive market.

NEPSE Index Rises 59.4 Points Amid Election Hype

The Nepal Stock Exchange (NEPSE) index rose from 2649.30 on January 6 to 2708.70 by yesterday, a gain of 59.4 points. Daily turnover also surged from Rs 7.5 billion to Rs 11.28 billion during this period. Investors are buoyed by the upcoming March election, expecting economic stability and youth leadership. Tara Prasad Phullel of the Share Investors Association Nepal noted that while liquidity is high and interest rates are falling, market growth remains below expectations. Historically, Nepali markets have shown upward trends during election cycles, with total market capitalization now reaching Rs 45.47 billion.

Super Khudi Hydropower to Launch IPO on February 16

Super Khudi Hydropower Limited will open its Initial Public Offering (IPO) for the general public on February 16. Following the completion of the first phase for locals and migrant workers, the company is offering 1,286,500 shares at a face value of Rs 100, totaling Rs 128.6 million. Investors can apply for a minimum of 10 shares and a maximum of 100,000 shares through the C-ASBA system until February 22. Global IME Capital is managing the sale for the project, which has received a Care-NP BB rating.

Gold, Silver Prices See Slight Decline

The price of gold and silver has slightly declined in the domestic market today. According to the Federation of Gold and Silver Dealers’ Association, the gold price has decreased by Rs 4,200 per tola (11.66 grams) and is being traded at Rs 291,000 per tola today. It was Rs 295,200 per tola on Thursday. Similarly, the Federation has fixed the price of silver at Rs 4,710 per tola today against Rs 4,980 on Thursday. The price of silver has gone down by Rs 270 per tola today. According to international media, gold is being traded at USD 4,828 per ounce and silver at USD 74 per ounce in the international market.