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:

NEPSE Edges Up 0.22 Percent to Close Week at 2,654.93

The Nepal Stock Exchange (NEPSE) rose 6.03 points, or 0.22 percent, on Thursday to close at 2,654.93, ending the week on a positive note. The Sensitive Index gained 0.42 percent to 456.51. Turnover fell to Rs 4.17 billion from Rs 4.45 billion on Wednesday, with 10.05 million shares traded in 44,204 transactions of 335 companies. Nine of 13 sector indices advanced, led by non-life insurance, finance, and commercial banks, while manufacturing, microfinance, and mutual funds declined. Share prices of 137 companies rose, 118 fell, and seven remained unchanged.

NRB to Revise Sectoral Credit Limits to Boost Investment

In its midterm review of the monetary policy, Nepal Rastra Bank (NRB) announced plans to revise sectoral credit limits to encourage lending in productive areas. The NRB will now include tourism, information technology (IT), and export-oriented industries based on local raw materials within the preferential credit framework previously reserved for agriculture and energy. Rastriya Banijya Bank CEO Devendra Raman Khanal observed early signs of recovery in real estate and share loans, suggesting that political stability after the March 5 elections could trigger a surge in credit demand. The bank also announced flexibility in working capital loans and restructuring facilities for distressed borrowers to stimulate overall economic activity.

Labor Ministry Tightens Rules on Foreign Employment Health Checks

The Ministry of Labor, Employment and Social Security has issued a directive to strictly regulate health examinations for migrant workers per the 2015 procedure. The ministry warned that certain NGOs, individuals, and foreign agencies in the Gulf and Malaysia have been illegally monitoring clinics, setting their own standards, and fixing unauthorized service fees. These activities bypass bilateral agreements and place an unfair financial burden on workers. The Foreign Ministry has been requested to coordinate with diplomatic missions to ensure that any health-check modifications by destination countries receive prior government approval. Authorities emphasized that only state-listed institutions are authorized to conduct these mandatory medical screenings for departing laborers.

Banks Accumulate Rs 11.49 Billion in Excess Liquidity

As of February 23, commercial banks collected Rs 431 billion in deposits but disbursed only Rs 214 billion in loans. This has resulted in a massive liquidity surplus, with Rs 1.149 trillion currently investable. Despite interest rates hitting historic lows, loan demand remains stagnant due to political instability and low private sector confidence following the Gen Z protests on September 8. Nepal Chamber of Commerce President Kamlesh Agrawal noted that over 150,000 borrowers have been blacklisted in five years, further dampening credit growth. NRB aims for 12% credit expansion this year, though experts doubt the target will be met.

Nepal Airlines Reports 7% Revenue Growth in Six Months

Nepal Airlines Corporation (NAC) recorded significant performance improvements during the first half of the current fiscal year 2025/26. Data from July to January shows a 7% increase in total revenue and an 18.7% surge in passenger numbers compared to the same period last year. Spokesperson Archana Khadka attributed this growth to the maximum utilization of available aircraft and effective flight scheduling across various international destinations. Most flights between January and March are currently operating at high occupancy. The national flag carrier aims to sustain this momentum by further expanding its service network and strengthening its market management strategies to compete more effectively in the regional aviation sector.

Flight Operations to Remain Regular on Election Day

The Election Commission has announced that both international and domestic flights will operate as scheduled on March 5. To facilitate travel, the Home Ministry has been instructed to allow passengers with valid tickets to travel between airports and hotels using private or airline vehicles. According to the ‘Election Security Management Directive, 2026,’ voters must present a Voter ID, Citizenship Certificate, National ID, Passport, Land Ownership Certificate, or Driver’s License to cast their ballots. A dedicated unit at the Commission’s secretariat, involving staff from the District Administration Office in Kathmandu, has been established to distribute vehicle passes for the day.

Tourists to Access Vehicle Permits 2-Day Before Elections

The Election Commission has implemented a provision allowing tourists to operate vehicles on the March 5 election day by obtaining permits at least two days in advance. According to the ‘Procedure Related to Vehicle Permission, 2026,’ international and domestic flights will remain operational. Spokesperson Narayan Prasad Bhattarai stated that permits can be secured from the Commission in Kathmandu or respective District Administration Offices. While public transport is restricted to ensure security, essential services, diplomatic missions, and human rights monitors are permitted to operate to facilitate travel for international visitors and emergency needs.

Highway Emergency Landing Plan Remains Stalled for Five Years

The government’s plan to develop national highways into emergency landing strips for relief and security remains unfulfilled since its introduction in the 2019/20 policy program. Although a Road Bank study identified suitable sections in Janakpur-Jatahi, Birgunj-Pathlaiya, and Butwal-Narayangadh, further progress has ceased. Physical Infrastructure Secretary Keshav Kumar Sharma admitted the report is currently stalled due to a lack of prioritization and funding. Infrastructure expert Surya Raj Acharya argued that upgrading existing Terai airports with 2.5-kilometer runways would be more cost-effective than constructing specialized highway strips, which require complex integrated air traffic and road safety systems to function safely during emergencies.

Customs Department Warns of Illegal Trade During Election Period

The Department of Customs has issued a circular to all 43 customs offices to monitor for increased illegal trade ahead of the March 5 election. Director Kishore Bartoula warned that smuggling often rises when security forces are diverted to election duties. With the demand for food and election materials increasing, officials are concerned about revenue leakage at open borders with India and China. The Department of Revenue Investigation has also been alerted to coordinate efforts. Nepal Chamber of Commerce President Kamlesh Agrawal suggested that adjusting tax rates could be a permanent solution to discourage informal trade as market consumption spikes during political events.

Local Governments Struggle to Manage Transferred Tourism Assets

Several local levels in Bagmati Province are facing financial hurdles in operating newly transferred tourism structures. In Thaha Municipality, Mayor Bishnu Bista noted that the Rs 29.9 view tower in Chitlang requires further investment for hostels and eateries. Similarly, Kakani Rural Municipality Chairman Suman Tamang requested over Rs 1 million from the ministry to repair a Rs 33.2 million hill station. In Roshi, Chairman Dinesh Lama refused to take over a Rs 21.9 million tower due to incomplete stairs and access roads. Meanwhile, Khadadevi Rural Municipality Chairman Gyan Kumar Shrestha reported that a Rs 26.5 million tower is being vandalized and looted.

Dairy Firm Fined Rs 20,000 for Lack of Renewal

The Department of Commerce, Supplies and Consumer Protection fined Bhagawati Dairy Industry in Attarkhel, Gokarneshwor-9, Rs 20,000 for operating without renewing its registration. Director Narhari Tiwari stated that the department has intensified market monitoring ahead of the March 5 elections to prevent the sale of expired goods while regulators are preoccupied with electoral duties. On Wednesday, a monitoring team inspected 12 entities, including grocery stores and restaurants. Authorities issued improvement directives to several businesses found with minor compliance issues, emphasizing that consumer rights must be protected despite the administrative focus on the upcoming nationwide House of Representatives voting process.

Bagmati Province 11 View Towers Remain Deserted

Between 2020 and 2023, the Bagmati Province government invested Rs 288 million to construct 11 view towers and hill stations across eight districts. However, due to a lack of operational guidelines and clear management plans, these structures have remained abandoned for two to five years. Culture and Tourism Secretary Dipendra Subedi stated that while the ‘Tourism Infrastructure Transfer and Management Procedure, 2024’ was recently introduced to hand over these assets to local levels, many remain in disrepair. Tourism entrepreneur Shiva Simkhada criticized the projects as ‘policy corruption,’ arguing that building towers on natural viewpoints without proper road access or hospitality services is a waste of public funds.

CIB Rescues 382 Nepalis from Foreign Online Scam Centers

The Ministry of Foreign Affairs reported that 382 Nepalese citizens have been rescued from illegal online scam operations in Thailand, Myanmar, and Cambodia. Data shows a sharp rise in trafficking, with 168 rescues in the current fiscal year 2025/26, compared to 156 the previous year and 68 in 2023/24. Currently, 248 citizens are awaiting rescue in Cambodia. Joint Secretary Lok Bahadur Chhetri noted that ‘Gen Z’ youth with computer skills are primary targets for these syndicates. Despite the dangers, many victims refuse to file official complaints with the Anti-Human Trafficking Bureau due to threats or involvement in luring others into the cycle.

Hailstorm Destroys Winter Crops of 70 Families in Salyan

A massive hailstorm in Darma Rural Municipality-5, Salyan, has completely destroyed the winter crops of 70 households. Local resident Sita Khadka reported that wheat, legumes, mustard, and vegetables were ruined within seconds, erasing a year’s worth of agricultural income. Ward Chairman Sudip KC identified Wadne, Utiseni, and Jaljale as the hardest-hit areas. Affected farmers, including Santosh KC, have appealed to the government for immediate relief, as the loss of harvest-ready crops threatens their daily livelihoods. The rural municipality has initiated a formal monitoring process to assess the total economic damage and provide necessary assistance to the distressed farming families.

Mustard Farming Area Expands to 3,746 Hectares in Nawalparasi

Farmers in Nawalparasi (Bardaghat Susta Purba) are increasingly shifting toward mustard cultivation due to rising market prices and the demand for pure oil. Agricultural economist Sanjay Dhakal noted that the farming area reached 3,746 hectares this year, an increase of 21 hectares from the previous year’s 3,725 hectares. Production is estimated to hit 4,667 metric tons, with an average yield of 1.25 metric tons per hectare. Localities like Kawasoti, Madhyabindu, and Gaidakot are recognized as pocket areas. Farmers prefer this 80- to 90-day crop because it requires less labor while providing high-quality oil and nutrient-rich oil cake for fertilizer.

Pokhara Expands Watermelon Cultivation to Over 40 Hectares This Year

Pokhara Metropolitan City is expanding watermelon cultivation to approximately 40.6976 hectares this year to promote commercial farming. Agriculture Division Head Manhar Kadariya reported that the city provided a 50% subsidy on seeds and mulching for 15.2616 hectares, while farmers independently invested in the remaining area. Last year, cultivation across 10.1744 hectares in Wards 13, 14, and 33 resulted in transactions worth Rs 20 million. To support growers, the city has fixed a minimum support price of Rs 35 per kilogram. The Saraswati variety remains the most popular choice among local farmers participating in this growing agricultural trend.

Bhirkot Municipality Launches Trial Watermelon Farming Along Aandhikhola

Bhirkot Municipality in Syangja, in collaboration with Heifer International, has initiated experimental watermelon cultivation on 1.0174 hectares of land along the Aandhikhola river. Mayor Govinda Kumar Karmacharya stated that 18 farmers are currently testing two varieties, Lakshmi and Saraswati, with production expected by mid-May. The municipality provided seeds, equipment, and technical support, pledging to purchase the produce if farmers cannot sell it independently. This project marks a shift toward commercial off-season vegetable production, including bell peppers and Akabare chilies, to boost the local agricultural economy and utilize riverbank soil effectively.

New Embankment Secures Kutiyakabar Village from Jogbudha River Floods

The construction of an 800-meter embankment along the Jogbudha River has brought relief to the flood-prone settlement of Kutiyakabar in Dodhara Chandani-10. The Irrigation and Water Resources Management Project signed a contract worth Rs 51.6 million with Shankar Construction to complete the 816-meter structure by April 8. Ward Chairman Chandra Bahadur Singh noted that the barrier has already reduced the fear of displacement for 150 families. While the village is now safer, authorities highlighted a budget deficit of Rs 100 million needed to complete additional flood control works along the Mahakali and Doda rivers.

Gold and Silver Prices Rise in the Market Today

Gold and silver prices have increased in the market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold has risen by Rs 600 per tola (11.66 grams) and is being traded at Rs 315,400 per tola. On Wednesday, gold was traded at Rs 314,800 per tola. Similarly, the price of silver also increased on Thursday. The price of silver increased by Rs 10 today to Rs 5,725 per tola, according to the federation.