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 Ministry Reports 46 Percent Budget Expenditure

The Ministry of Finance released its progress report for the second quarter of fiscal year 2025/26, revealing that 46.06 percent of the annual budget was spent by mid-January. Out of the total Rs 1.964 trillion budget, Rs 904.644 billion has been utilized. While current expenditure reached 40.82 percent, capital expenditure remained low at 11.66 percent, totaling Rs 47.544 billion. The ministry also faced a revenue shortfall of Rs 129.8 billion against its mid-year target of Rs 711.2 billion.

Rs 19.15 Billion Allocated for Elections, Rs 6.36 Billion Released

The Ministry of Finance has granted source approval for Rs 19.15 billion to fund the upcoming parliamentary elections on March 5. Of this, Rs 6.36 billion has already been disbursed. Specifically, the Election Commission received source assurance for Rs 6.736 billion, with Rs 6.31 billion released by January 2026. Security allocations include Rs 10.39 billion for the Ministry of Home Affairs, Rs 1.94 billion for the Nepal Army, and Rs 28 million for the National Investigation Department.

Lumbini Province Faces Significant Revenue Deficit

The Lumbini Province government reported a stark gap between income and expenditure in the first half of fiscal year 2025/26. While the province spent Rs 7.955 billion, it collected only Rs 925 million in internal revenue, missing its half-yearly targets. Capital expenditure remains slow at 18.04 percent of the Rs 23.47 billion budget. Federal grants also lagged, with only Rs 5.66 billion received against a Rs 14.1 billion target. Revenue from vehicle taxes and house-land registration reached only 37.47 percent and 16.91 percent of their respective goals.

Kathmandu-Terai Fast Track Reaches 45 Percent Progress

Construction of the Kathmandu-Terai Fast Track has reached 45.16 percent physical progress. Managed by the Nepal Army, the Rs 2.13 billion project has achieved “breakthroughs” in four out of seven planned tunnels at Dhedre and Lendanda. Two more tunnel pairs are expected to be completed by the end of this fiscal year. The 70.97 km strategic highway includes 89 bridges, with 13 major bridges already finished. The project, vital for connecting the capital to Nijgadh in under an hour, is slated for completion by April 13, 2027.

America’s Trump Administration Cuts Subsidies for Nepali Migrants

The American government, under President Donald Trump, has implemented a strict policy ending taxpayer-funded subsidies for foreign nationals. According to the Nepali Embassy in Washington, D.C., immigrants and visitors can no longer access subsidized healthcare, housing, family, or educational assistance. Providing false information to obtain these benefits will result in the immediate revocation of visas or ‘green cards’. Furthermore, a mandatory “Visa Bond” ranging from USD 5,000 to USD 15,000 is now required for B1/B2 applicants effective January 21, 2026. The US Embassy in Nepal advised against paying bonds before official interviews.

Number of Skilled Migrant Workers Declines in 2025/26

Data from the Department of Foreign Employment reveals a decrease in the proportion of skilled workers going abroad. In the first half of fiscal year 2025/26, only 250,000 (64 percent) of the 402,074 labor permit recipients were categorized as skilled. This is a drop from 72 percent in the same period last year. Conversely, the number of unskilled workers rose significantly from 59,524 to 93,550. Experts have noted that despite the 2018 skill development guidelines, mandatory training remains unimplemented, leaving many young Nepalis in low-paying, high-risk jobs without proper certification or safety training.

Commercial Bank Profits Rise to Rs 30.59 Billion

In the second quarter of fiscal year 2025/26, 20 commercial banks recorded a combined net profit of Rs 30.59 billion, an 11.51 percent increase compared to last year. However, profits declined for nine banks, including NIC Asia and Agriculture Development Bank. Nabil Bank led the sector with Rs 4.75 billion in profit, aided by a Rs 1 billion recovery from a Chinese court case. Despite the profit growth, the average non-performing loan (NPL) ratio rose to 5.08 percent, forcing banks to set aside Rs 28.75 billion for loan loss provisioning, a 16.54 percent increase.

Tax Net Widens With 379,000 New Registrations

The Ministry of Finance reported on Thursday that 379,212 new taxpayers were added during the first half of the current fiscal year (mid-July 2025 to mid-January). The new registrations include 55,242 Business PAN, 304,890 Personal PAN, and 13,257 VAT payers. With this surge, the total number of PAN holders in Nepal has reached 7,360,353, while VAT registrations stand at 364,992. Additionally, 4,952 new taxpayers registered for excise duty, bringing the total in that category to 129,949. This expansion reflects the government’s efforts to broaden the tax net and formalize more sectors of the economy.

Commerce Department Reports Middlemen Hike Food Prices

The Department of Commerce, Supplies, and Consumer Protection released its market analysis for mid-December 2025 to mid-January, highlighting significant price fluctuations caused by middlemen. While staples like ‘Sona Mansuli’ rice saw price drops, ‘Basmati’ rice and pulses recorded increases. The report noted extreme volatility in spices and vegetables, with prices for hybrid beans and cucumbers surging by 109 percent to 160 percent. The department conducted studies across six major cities, including Kathmandu and Birgunj, and recommended ending market syndicates and cartels to protect consumers from artificial price hikes and ensure competitive market practices.

PPMO Demands Clarification from Nine Construction Firms

The Public Procurement Monitoring Office (PPMO) issued a seven-day written notice today, seeking clarification from nine construction companies and suppliers. The office had previously sent 30-day notices to these firms’ registered addresses following requests from various public entities to blacklist them for non-performance. As the firms failed to respond within the initial window, the PPMO has provided a final 7-day ultimatum. Failure to provide valid evidence and justification against the blacklisting within this period will lead to the firms being barred from participating in future public procurement contracts.

KMC to Build Box Culverts to Prevent Monsoon Flooding

The Kathmandu Metropolitan City (KMC) has initiated the construction of box culverts at Bagbazar and Babarmahal to mitigate flooding risks. A Rs 5.7 million contract was signed to replace aging pipes at the Tukucha stream near Putalisadak, with a completion deadline of April 13. Additionally, a Rs 2.212 billion culvert will be built near Rosebud School on the Dhobi Khola river, replacing a bridge damaged in 2023. Sub-engineer Deepak Bahadur Shahi stated that traffic diversions through Kamaladi and Ghantaghar will be coordinated with traffic police during the construction.

Kohalpur-Surkhet 132 KV Transmission Line Testing Today

The construction of the Kohalpur-Surkhet 132 KV Transmission Line has been completed under a joint venture between the Government of Nepal and Nepal Electricity Authority (NEA). Shashi Bhushan Shah, NEA Karnali Provincial Chief, announced that the double-circuit line from the Kohalpur substation in Banke to the Subbakuna substation in Surkhet will undergo testing starting today. The NEA has issued a public safety warning, urging residents in Banke, Bardiya, and Surkhet to stay away from towers and electrical structures during the trial phase before it joins the national grid.

Gorkhapatra Seeks 91 Employees for Various Roles

The state-owned Gorkhapatra Corporation announced 91 vacancies on Friday for positions ranging from Level 2 to Level 9. The recruitment includes one deputy executive editor, 16 reporters for Nepali and English sections, 14 administration staff, and 13 account officers. Other roles include market officers and photojournalists. Applications must be submitted to the central office at Dharmapath, Kathmandu, by February 19. Applicants can also apply with a double fee until February 26. This recruitment follows the annual schedule approved by the Public Service Commission.

Nepal Telecom Announces 80 Vacancies Across 12 Levels

Nepal Telecom has invited applications for 80 permanent positions through open and inclusive competitive examinations. The vacancies range from Junior Technician (Level 3) to Deputy Manager (Level 9) across 12 different job categories. Interested Nepali citizens can apply through the official online portal. The deadline for regular application fees is February 19, while late applications with double fees will be accepted until February 26. This recruitment drive aims to strengthen the company’s technical and administrative workforce amid ongoing infrastructure upgrades like the nationwide billing system integration.

Winter Rain Destroys Raw Bricks Worth Rs 100 Million in Banke

Two days of continuous winter rainfall have caused massive destruction to the brick industry in Banke. Deepak Adhikari, vice president of the Lumbini Brick Entrepreneurs Association, reported that between 5 million and 10 million raw bricks kept for drying were destroyed in a single kiln. Total losses in Banke alone are estimated at Rs 100 million, affecting 70 industries in Banke and 23 in Bardiya. Adhikari warned that since raw bricks cannot be insured, entrepreneurs must bear the full loss, which will likely trigger a price hike in the market, where a single brick currently costs Rs 15.

Parbat Exports Oranges Worth Rs 320.5 Million

Farmers in Parbat district successfully exported oranges worth Rs 320.5 million during the current fiscal year. According to the Agriculture Development Office, some 3,421 metric tons were produced, with Banskharka alone contributing Rs 200 million to the total income. Farmers received between Rs 95 and Rs 120 per kilogram directly from their orchards. Improved road networks, including the Mid-Hill Highway, allowed traders from Kathmandu, Pokhara, and Narayangadh to reach remote villages like Deupur and Huwas. Over 400 commercial farmers now cultivate oranges across 833 hectares in the Phalebas, Jaljala, and Modi municipalities.

Singapore Airlines to Deploy Large Wide-Body Aircraft to Kathmandu

Singapore Airlines will operate two of its seven weekly flights between Singapore and Kathmandu using wide-body aircraft during Nepal’s spring season in March and April to meet higher seasonal demand. The move coincides with the peak trekking period, which attracts international tourists and enables Nepalis abroad to travel home. The wide-body aircraft will offer 337 seats, including 36 in business class and 301 in economy. Passengers will have access to KrisWorld entertainment, in-flight Wi-Fi, fully flat Business Class beds with direct aisle access, and ergonomically designed Economy Class seating, the airline said.

Laxmi Sunrise Provisions: Rs 4.473 Billion for Losses

Laxmi Sunrise Bank has set aside Rs 4.473 billion for loan loss provisioning in the second quarter of 2025/26, the highest among all commercial banks. This marks a 131.86 percent increase compared to the previous year. Nepal Investment Mega Bank followed with a Rs 3.9 billion provision, a 74.58 percent rise. As bad loans across the sector climbed to an average of 5.08 percent, banks have been forced to lock away Rs 28.78 billion to cover potential defaults. Himalayan Bank recorded the highest increase in provisioning, jumping by 462.95 percent to reach Rs 1.3 billion.

Gold Price Settles at Rs 318,800 Following Sharp Decline

Breaking the continuous increasing trend, the gold and silver prices have declined in the domestic market today, the last trading day of the week. According to the Federation of Gold and Silver Dealers’ Association, the price of gold has been set at Rs 318,800 per tola (11.66 grams) today against Rs 339,300 per tola on Thursday. Similarly, silver is being traded at Rs 7,065 per tola today. It was Rs 7,505 on Thursday. The gold price was determined at Rs 318,800 per tola on Wednesday, while the price of silver per tola was Rs 7,300 per tola. Likewise, gold was traded at Rs 309,300 per tola and silver at Rs 6,870 per tola on Tuesday. According to international media, gold is being traded at USD 5,537 per ounce and silver at USD 117 per ounce in the international market today.