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:

Global Crude Oil Prices Surge Over 5 Percent

International crude oil prices spiked on Monday, following intensified conflict in the Middle East. Following joint US-Israeli military actions against Iran, West Texas Intermediate (WTI) crude rose by more than 5 percent, while Brent Crude increased by approximately 6 percent. Economists warn that supply chain disruptions and maritime shipping obstacles could exert significant pressure on global inflation. While some analysts believe the impact might be temporary, the immediate surge reflects deep geopolitical anxieties and preemptive hoarding by several nations, threatening to drive up energy costs and consumer prices worldwide in the coming weeks.

NRB Absorbs Rs 1 Billion Liquidity from Market

To manage excess liquidity in the banking system, Nepal Rastra Bank (NRB) conducted a deposit collection worth Rs 1 billion on Tuesday. The central bank utilized a bidding process for a six-day tenure, allowing banks and financial institutions to submit online bids. Interest rates were determined through this competitive bidding mechanism. Successful bidders are scheduled to receive their principal and interest payments on Sunday, March 8. This move is part of the central bank’s regular open market operations aimed at maintaining monetary stability and managing the surplus funds currently held by commercial and development banks.

NEPSE Mandates IT Audits for Stock Brokers

The Nepal Stock Exchange (NEPSE) has implemented the IT Audit Guidelines 2026 to mitigate rising cyber risks in the capital market. Under this new regulation, every brokerage firm must undergo a comprehensive information technology audit at least once every two years. New brokers are required to complete their first audit within six months of starting operations. The audit covers digital infrastructure, including Trading Management Systems (TMS), server security, network firewalls, and mobile applications. By enforcing regular testing of data backup and encryption systems, NEPSE aims to protect investor data from hacking and system failures, thereby enhancing the overall reliability and security of digital trading in Nepal.

Rs 1.634 Billion Spent on Liquor Imports

In the first seven months of the current fiscal year 2025/26, Nepal imported 1,907,888 liters of liquor, valued at Rs 1.634 billion. According to the Department of Customs, this import generated Rs 2.633 billion in revenue. The breakdown includes 550,419 liters of whiskey worth Rs 1.225 billion and 36,072 liters of vodka valued at Rs 45.9 million. Additionally, 805 liters of rum were imported for Rs 988,000, while other alcoholic beverages accounted for Rs 361.9 million.

Rs 11.5 Billion Karnali-Chisapani Project Remains Stalled

The 10,800-megawatt Karnali-Chisapani Multipurpose Project, estimated to cost Rs 11.5 million, remains unconstructed 65 years after its first study in 1960. Despite five feasibility studies and training 250 engineers specifically for this project, the government has shown little initiative. Expert Hem Raj Panta suggests that without India’s cooperation, the project is unlikely to move forward, as India is the primary buyer and seeks investment control. The project could irrigate 200,000 hectares in Nepal and 350,000 hectares in India, while significantly controlling floods in Bangladesh, yet it remains a sidelined priority for successive political administrations.

Non-Performing Loans in Development Banks Reach Rs 30 Billion

The prolonged economic slowdown has severely impacted the financial health of development banks, with non-performing loans (NPL) rising to 5.75 percent. According to Nepal Rastra Bank, out of a total credit flow of Rs 5.369 billion by mid-February, at least Rs 30.874 billion remains inactive. This is an increase of Rs 4.414 billion compared to the same period last year. Narayani Development Bank reported the highest NPL at 57.48 percent. Bankers attribute this decline to sluggish economic activities and the aftermath of the September 8 and 9, 2025, protests, which hindered loan recovery efforts across the country.

Motor Insurance Dominates with Rs 9.159 Billion Premium

Non-life insurance companies in the country collected a total premium of Rs 28.274 billion in the first seven months of the current fiscal year. Data from the Nepal Insurance Authority shows motor insurance as the leading sector, contributing Rs 9.159 billion, a 19.95 percent increase from last year. Property insurance ranked second at Rs 6.776 billion, followed by engineering and contract risk insurance at Rs 4.517 billion. While most sectors, including micro-insurance, saw significant growth, aviation insurance premiums declined by 5.42 percent, reflecting shifting market dynamics within the 14 non-life and 4 micro-insurance providers.

Govt. Ensures Essential Supplies Amid Regional Conflict

The Ministry of Industry, Commerce, and Supplies has directed the Nepal Oil Corporation (NOC) and Salt Trading Corporation to maintain sufficient stocks of essential goods for the upcoming election. Secretary Madhusudan Burlakoti assured that the US and Israeli strikes on Iran will not cause immediate fuel shortages, as Indian Oil Corporation (IOC) maintains a three-month crude oil reserve. NOC currently holds fuel stocks for 10 to 15 days and will keep depots open during public holidays. The ministry also instructed the Department of Commerce to intensify market monitoring to prevent artificial shortages or price hikes during the March 5 polls.

International Flights Canceled Due to Middle East Conflict

Direct international air connectivity to Nepal has been significantly disrupted following US and Israeli strikes on Iran and subsequent retaliatory actions. On Monday, a total of 16 international flights were canceled at Tribhuvan International Airport (TIA). Affected carriers include Nepal Airlines, Himalaya Airlines, Qatar Airways, Fly Dubai, and Jazeera Airways. The TIA office reported that the airspace of Qatar, UAE, Kuwait, Iran, Iraq, Israel, Jordan, Lebanon, and Bahrain remains closed. Airport authorities are currently coordinating with airlines to manage stranded passengers and minimize the impact of the regional conflict on global travel.

1.5 Million Passengers Hit by Middle East Flight Disruptions

Over 1.5 million passengers have been affected as approximately 9,500 flights were canceled at seven major Gulf airports over a four-day period. According to Flightradar24, disruptions hit Dubai, Hamad, Zayed, Sharjah, Kuwait, Bahrain, and Al Maktoum international airports. Daily cancellations spiked from 1,400 on Saturday to 3,400 on both Sunday and Monday. With an average of 160 passengers per aircraft, the regional conflict has created a massive logistical challenge. Airlines are currently struggling to rebook affected travelers as airport administrations manage the operational crisis caused by closed airspaces across the region.

Yeti Airlines Cancels All Flights for Election Day

Yeti Airlines has officially announced the suspension of all its flight operations for Thursday, in view of the House of Representatives election. The airline issued a public notice stating that no domestic flights will be operated on the day of voting to support the electoral process. Regular flight services are scheduled to resume as per the normal timetable on Friday, March 6. The company expressed its apologies for any inconvenience caused to passengers due to this one-day closure, emphasizing that the decision aligns with national security and logistical arrangements made for the country’s general election.

Over 300K Voters Leave Kathmandu for General Election

An exodus of voters from Kathmandu Valley has surged as the Thursday, March 5 election approaches. Traffic police records show that more than 300,000 people have already departed via major exit points like Gongabu and Koteshwor to cast their ballots in their home districts. This number is expected to double by Wednesday. Many voters, including Raju Chaulagain and Bidur Nepali, expressed hope for candidates who can drive economic change and reduce foreign labor migration. This election, the first since the September 8 and 9, 2025, protests, will see 18,903,689 registered citizens electing a 275-member lower house.

Govt. Establishes 9 Priority Areas for Forest Fund Spending

The government has issued the Forest Development Fund Operation Guidelines, detailing nine specific sectors for utilizing funds from carbon trading, environmental fees, and infrastructure projects. The primary focus includes forest expansion, nursery establishment, and the Sagarmatha Plantation Campaign running from 2025 to 2045. Funds will also target sustainable forest management, biodiversity conservation, and human-wildlife conflict mitigation through greenbelt construction. Additionally, the fund will finance climate change adaptation, research, and the purchase of private land to expand national forests. A technical subcommittee will evaluate project proposals every March to ensure transparent budget allocation and prevent duplication with regular government spending.

NOC Prohibits Fuel Hoarding Amid Stable Supply Chain

Nepal Oil Corporation (NOC) Executive Director Chandika Prasad Bhatta has urged the public to avoid unnecessary fuel hoarding, citing severe fire and accident risks. In a notice issued on Monday, the corporation assured that petroleum imports through the pipeline remain regular and will be sufficient throughout the March 5 election period. To mitigate safety hazards, NOC has strictly prohibited the filling of petroleum products in jerry cans and drums. Consumers are requested to purchase only essential quantities of fuel, as the corporation maintains adequate stock to prevent any shortage during the national voting process.

Daunne Road Section to Be Concreted for Rs 510 Million Extra

The expansion of the 113 km Narayangarh-Butwal road, funded by the Asian Development Bank (ADB), has reached 80 percent completion after seven years. Due to unstable soil and high traffic loads, the project will now use concrete for 11 km of the 14 km Daunne section instead of asphalt. Project Chief Chudaraj Dhakal stated this change added Rs 510 million to the cost but ensures a 30-year lifespan, making it cheaper than frequent asphalt repairs. While the overall project deadline is the last month of the current fiscal year, authorities claim the difficult Daunne work will be finished by mid-June to ease traveler distress.

Abukhaireni-Jamune Road Upgradation Reaches 95% Completion

The Abukhaireni-Jamune section of the Prithvi Highway is near completion, with 95 percent of the work finished. This 41 km stretch, funded by an Asian Development Bank (ADB) loan of Rs 6.31 billion, has been expanded to six lanes in urban areas. Project Director Chudaraj Dhakal credited local cooperation for the rapid progress. While the road is being hailed as a model project, engineers are currently studying 18 specialized landslide zones among 56 identified areas to ensure long-term stability. Additionally, work on the Madi Bridge is 80 percent complete, significantly improving the connectivity between Mugling and Pokhara for thousands of daily commuters.

Rs 910 Million Contract Issued for Nagma-Gamgadhi Road Paving

After 13 years of operation, the Road Division Jumla has finally called for tenders to blacktop 15 km of the 93 km Nagma-Gamgadhi Road. The Federal Ministry of Physical Infrastructure has secured a budget of Rs 910 million for this phase. Minister Madhav Chaulagain prioritized the project to improve access for tourists visiting Rara Lake, who currently face dust and mud. While 21 km will be paved following this contract, 72 km of the strategic route connecting to China via Nakche Lagna remains in poor condition. Authorities estimate that completing the entire stretch will take over half a decade due to chronic budget constraints and regional neglect.

Dang To Host Industrial and Tourism Festival Starting March 12

The Federation of Nepal Cottage and Small Industries (FNCSI) Dang will organize the Lumbini Provincial Small and Cottage Industry, Cultural Tourism, and Agriculture Festival 2026. Scheduled from March 12 to March 29 in Ghorahi, the event aims to promote local products and entrepreneurship. Chairman Luv Adhikari stated the festival will feature 300 stalls, offering skill-learning workshops, job-matching services, and discussions on digital marketing and AI. Highlights include agricultural technology displays, local costume competitions, and interactions with financial institutions. A main organizing committee led by Adhikari has been formed to manage security, health, and cultural programming for the massive event.

Farmers Thrive with Riverbed Onion Farming in Tikapur

Farmers of Tikapur Municipality have transformed the banks of the Karnali River into productive agricultural land. Approximately 50 to 60 households in Fantagaun and Batanpur are now utilizing the moisture-rich sand to grow onions, producing over 700 quintals annually. Local farmers noted that the riverbed production often exceeds traditional field yields. While the river causes distress during the monsoon floods, the winter season provides a lucrative income source. Individual families typically produce between 5 and 12 quintals of onions, alongside crops like coriander, maize, and cabbage, utilizing the otherwise barren islands for commercial success and self-sufficiency.

Greens Prices Drop by up to 40% in Kathmandu

Local market data reveals a significant decrease in the prices of various green leafy vegetables over the last month. The Kalimati Fruits and Vegetables Market Development Committee reported that fenugreek leaves saw the largest drop of 40 percent, falling from Rs 75 on February 2 to Rs 45 on March 3. Similarly, spinach prices fell by 33.33 percent to Rs 35, and cress dropped by 30.77 percent to Rs 45. Mustard and broad-leaf mustard also saw declines of 20 percent and 27.27 percent, respectively, providing much-needed relief to local consumers.

Lemon Prices Surge 161 Percent Within One Month

The price of lemons in the local market has witnessed a massive spike over the past month. According to data from the Kalimati Fruits and Vegetables Market Development Committee, the wholesale price of lemons increased by 161.11 percent. On February 2, lemons were traded at an average price of Rs 90 per kilogram. However, by March 3, the price surged to Rs 235 per kilogram. This sharp upward trend follows a period in late January, when prices were as low as Rs 85 per kilogram, indicating a rapid decline in supply or seasonal demand shifts.

Prabhu Insurance Announces 8.7% Bonus Share Dividend

The Board of Directors of Prabhu Insurance, during its meeting on March 1, declared a dividend from the profits of the last fiscal year. The company has proposed a bonus share of 8.7 percent of the current paid-up capital. Additionally, a cash dividend of 0.4679 percent has been announced to cover tax purposes. This distribution is subject to approval from the Nepal Insurance Authority and the company’s upcoming Annual General Meeting (AGM). Shareholders will receive the dividends once these formal approvals are finalized, marking a positive return for investors in the competitive non-life insurance sector of Nepal.

Gold Price Increases by Rs 2,500 Per Tola Today

Gold prices increased in the market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by Rs 2,500 per tola (11.66 grams) today, reaching Rs 328,600 per tola. On Monday, the price of gold was traded at Rs 326,500. Similarly, the price of silver has decreased today. Today, the price of silver is trading at Rs 5,815 per tola. On Monday, the price of silver was trading at Rs 6,020 per tola.