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:

NRB Deputy Governors Retire Ahead of General Election

Deputy Governors Dr Neelam Dhungana Timsina and Bam Bahadur Mishra have retired from Nepal Rastra Bank (NRB) as their five-year terms end on Sunday, March 8. Due to the public holidays for the March 5 election, they marked their final working day on Tuesday. Governor Dr Biswo Nath Poudel will now recommend four names from 18 executive directors to the cabinet to fill the vacancies. While the current interim government’s primary mandate was conducting elections, the appointment of new deputies remains a high-priority task for the central administrative authority of NRB.

NPC Sets Lower Budget Ceiling for 2026/27

The National Planning Commission (NPC), led by Vice Chairman Dr Prakash Shrestha, has set the budget ceiling for the fiscal year 2026/27 at Rs 1.890 trillion. This is Rs 74 billion lower than the current year’s budget of Rs 1.964 billion. The reduction reflects low revenue growth and poor capital expenditure, with only Rs 1.688 billion expected to be spent this year. Revenue collection has historically fallen short, reaching only 80 percent of targets since 2018/19. The new ceiling prioritizes realistic resource management over ambitious, unachievable spending targets.

Banks to Operate Limited Counters During Election Holidays

Although the government declared public holidays from today to Friday for the general election, several commercial banks will remain partially open. To facilitate essential financial transactions, banks have designated specific branches to provide cash counter and clearing services, particularly on Friday. Digital banking services, including ATMs, mobile banking, and internet banking, will remain fully operational throughout the holiday period. Financial institutions have urged customers to use digital platforms or visit designated “holiday counters” for urgent needs, ensuring that the election break does not completely halt the country’s economic activity and liquidity access.

Motor Insurance Dominates Non-Life Sector with Rs 9 Billion Collection

The Nepal Insurance Authority reported that non-life insurers collected a total premium of Rs 28.274 billion in the first seven months of the current fiscal year. Motor insurance emerged as the largest segment, with 14 non-life and four micro-insurers generating Rs 9.159 billion, a 19.95 percent increase from last year. Property insurance followed with Rs 6.776 billion, while engineering and contract risk insurance saw a 25.11 percent surge to Rs 4.517 billion. Conversely, aviation insurance premiums dropped by 5.42 percent, collecting Rs 1.281 billion.

Mandatory Real Estate Company Rule Postponed Due to Technical Issues

The Department of Land Management and Archive has suspended its recent decision requiring real estate transactions above Rs 30 million to be conducted exclusively through licensed companies. On Wednesday, the department instructed land revenue offices to revert to the old process. The rule, originally set for February 19, was intended for 11 sub-metropolitan and metropolitan cities, including Kathmandu and Bharatpur. However, the 36 licensed companies have not yet received technical approval for the mandatory Land Service Centers. Consequently, citizens can continue traditional land transfers and registrations for high-value properties until the digital infrastructure is fully operational.

Myagdi Implements 82 Infrastructure Projects Worth Rs 110 Million

In Myagdi, the Water Supply, Water Resource and Irrigation Development Division is implementing 82 projects during the current fiscal year 2025/26. Senior Divisional Engineer Jhalak Mohan Ojha stated that Rs 116.8 million in capital budget has been allocated for these schemes, which include 34 drinking water and 29 river control projects. Two major projects, the Ratnechaur Lift Drinking Water and Bukeni Irrigation systems, were recently completed using federal special grants. Under provincial directives, 43 projects have already been contracted through competitive bidding, focusing on disaster prevention and energy infrastructure to benefit local communities before the fiscal year ends.

Tanahu Hydropower Completes 92 Community Development Projects

The 140 MW Tanahu Hydropower Project has completed 92 infrastructure schemes in its affected areas, with eight additional projects currently underway. Project Chief Shyamji Bhandari stated that these initiatives, part of the Community Development and Livelihood Restoration Program, are being executed through local consumer committees. Ongoing works include a motorable bridge over Phedikhola in Bhimad Municipality-5, drainage construction in Myagde-3, and four suspension bridges over the Seti River. The project is funded by a USD 505 financial package, with contributions from ADB (USD 150 million), JICA (USD 184 million), EIB (USD 85 million), and the Nepal Government/NEA (USD 86 million).

Mechi Customs Revenue Surges Following Online Database Implementation

The Mechi Customs Office in Karkarbhitta reported a revenue increase after implementing the Customs Valuation Database software some one and a half months ago. Information Officer Ishwar Kumar Humagain stated that the office collected Rs 1.513 billion from mid-January to mid-February, exceeding its target of Rs 1.478 billion. Total revenue for the first seven months reached Rs 9.922 billion, though the annual target of Rs 18.877 billion remains a challenge due to economic issues. The new AI-integrated system has improved transparency, reduced leakage, and enhanced trade facilitation at Nepal’s ninth-largest customs point.

Country Imports Rs 31 Billion Worth of Iron in 7 Months

Despite having massive potential for domestic production, Nepal remains dependent on iron imports. In the first seven months of the current fiscal year, the Department of Customs recorded the import of 741.7 million kilograms of iron and steel products worth Rs 31.09 billion. The Dhowadi Iron Company, established five years ago to excavate a massive 100 million-ton deposit in Nawalparasi (Bardaghat Susta Purba), has yet to begin production. The project could reduce imports by 25 percent. Currently, two dozen domestic steel industries, including Aarti Strips and Jagadamba, rely heavily on raw materials imported from India, leading to a significant outflow of national currency.

Birgunj Customs Records 12% Increase in Import Value

The Birgunj Customs Office recorded imports worth Rs 519.1 billion during the first seven months of the current fiscal year. This marks a 12 percent increase, or Rs 57.31 billion, compared to the same period last year. Information Officer Udaya Singh Bista noted that petroleum products accounted for Rs 106.43 billion of the total. Other major imports included iron products at Rs 46.16 billion, machinery at Rs 35.87 billion, and raw soybean oil at Rs 35.67 billion. The surge reflects increased national demand for industrial raw materials and energy.

Fuel Consumption Doubles in Kathmandu Due to War Fears and Election

Fuel demand at the Nepal Oil Corporation (NOC) in Thankot depot has doubled over the last three days. Daily sales of petrol and diesel, which average 750 kiloliters, reached 1,381 kiloliters on Monday. Depot Chief Jagdish Yadav attributed the spike to citizens fueling up before traveling home for the Thursday election and fears of supply disruptions following US-Israeli strikes on Iran. On Sunday, petrol sales hit 1,650 kiloliters. NOC assured that supplies are secure through the Amlekhgunj pipeline and urged the public not to engage in panic buying.

Labor Department Offers Online Permits During Election Break

The Department of Foreign Employment has arranged for online labor permit services during the election holidays from March 4 to March 6. As many employees are deployed for election duty, the department will process applications digitally to avoid delays. While labor permits for Gulf countries are currently halted due to the ongoing war, approvals for other destinations will continue through the online system. This measure aims to assist migrant workers targeting non-conflict zones, ensuring their documentation is processed despite the nationwide closure of government offices. The department emphasized that digital services will minimize the impact of the three-day administrative break.

Stranded Travelers Miss Voting Opportunity Due to Flight Cancellations

Several migrant workers remain stranded at Tribhuvan International Airport after conflicts in the Middle East led to indefinite flight cancellations. Despite the upcoming House of Representatives election on Thursday, many travelers cannot return to their home districts to vote for fear of missing rescheduled flights. Bhuban Kumar Gurung, president of the Nepal Association of Foreign Employment Agencies, advised workers to return home, as immediate flights are unlikely. Currently, over 1.9 million Nepali laborers are stationed in the Gulf region, with their safety and travel stability severely compromised by the ongoing regional war.

Govt. Starts Tracking Nepalis Stranded in UAE Transit

The Department of Consular Services has launched an online portal to collect details of Nepalis stranded in the United Arab Emirates (UAE). Due to regional conflict involving Iran, Israel, and the USA, approximately 250 Nepalis are currently stuck in transit in Abu Dhabi and Dubai, with numbers expected to reach 1,000. Joint Secretary Ramji Khadka stated that airlines are currently responsible for the passengers’ food and lodging. The portal will coordinate rescue efforts for those whose visas were canceled or who are unable to reach their third-country destinations. Flights will prioritize these citizens as soon as regional airspace is declared safe.

Domestic Flights to Operate Based on Demand on Election Day

The Civil Aviation Authority of Nepal (CAAN) announced that domestic flights will operate based on necessity during the election on Thursday. While international flights to the Middle East remain suspended due to regional conflicts, other global routes will function normally. CAAN clarified that flight schedules for Gulf destinations will be adjusted according to the security situation in the respective countries. Travelers are advised to stay in contact with their airlines for updated timings. This ensures that while ground transport is restricted for election security, essential air connectivity remains available for passengers with valid tickets and urgent travel requirements.

NAC Cancels Flights to Dammam and Doha

Nepal Airlines Corporation (NAC) officially canceled its scheduled flights to Dammam, Saudi Arabia, and Doha, Qatar, on Wednesday. The national flag carrier issued a public notice citing the intensifying military conflict in the Gulf region as the primary reason for the disruption. NAC advised passengers traveling to Dubai, Doha, or Dammam to contact the airline or check the official website before arriving at the airport. The escalating war has caused widespread instability in international airspace, affecting multiple airlines and significantly impacting the frequency of labor migration and trade between Nepal and the Middle East.

Pokhara International Airport Records Minimal International Traffic

Statistics from Pokhara International Airport show that only nine international flight movements occurred in January. During this period, there were five arrivals and four departures, serving a total of only 74 international passengers. Despite Himalaya Airlines operating scheduled flights to Lhasa, China, seat occupancy remains extremely low. Conversely, domestic operations remained robust, with 2,118 flights carrying 72,011 passengers. While domestic travel flourishes, the airport’s international terminal continues to struggle with underutilization, failing to attract significant foreign carriers or high passenger volumes nearly three years after its high-profile inauguration.

Gautam Buddha Airport Reports Zero International Passengers

Gautam Buddha International Airport in Bhairahawa recorded zero international flights and zero international passengers in January. According to official airport data, the international terminal remained completely inactive for the entire month. However, the domestic sector saw steady activity with 766 total flight movements. A total of 43,735 domestic passengers used the facility, with 22,959 arrivals and 20,776 departures. The lack of international traffic highlights ongoing challenges in diverting global airlines to Nepal’s second international gateway, leaving the expensive infrastructure dependent entirely on domestic travelers and local flight operations.

Security Committee Orders Helicopter Patrols for Election Day

The Central Security Committee, led by Home Minister Om Prakash Aryal, met on Wednesday to finalize preparations for the House of Representatives election. The committee decided to deploy helicopters for aerial patrols and keep them on standby for emergency medical evacuations at polling stations. Attended by Home Secretary Rajkumar Shrestha and security chiefs, the meeting concluded that while there are no major security threats, strict action will be taken against those disrupting the peace. Authorities have already coordinated with Chief District Officers across all 77 districts to ensure a high level of vigilance during the voting process on Thursday (March 5).

Kathmandu Bus Parks Swell as Voters Return Home for Election

Kathmandu’s major transport hubs, including New Bus Park in Gongbu, Kalanki, Koteshwor, and Balkhu, have seen a massive surge of travelers ahead of the House of Representatives election on Thursday. Thousands of citizens residing in the capital for work or study are returning to their home districts to exercise their voting rights. However, this mass exodus is straining the local economy, with severe vehicle shortages forcing passengers to pay inflated fares. To ensure safety, the government has banned non-essential vehicles from midnight on Wednesday, effectively halting regional trade and commercial transport until the polls conclude.

February Tourist Arrivals Outperform Pre-Pandemic Levels

Nepal recorded 105,441 tourist arrivals in February, an 8.83 percent increase from February 2025. According to the Nepal Tourism Board, this also surpasses the pre-pandemic February 2019 figure of 102,423. Indian tourists led the surge with 22,745 visitors, an 18.5 percent growth. Significant increases were also noted from Sri Lanka (72 percent) and Myanmar (91.6 percent). However, arrivals from Australia plummeted by 61.84 percent, and American visitors decreased by 6.16 percent. January this year also saw a 15.7 percent improvement, indicating a strong start for the tourism year despite regional geopolitical tensions.

Experts Warn of Economic Challenges Due to Conflict

The Nepal Association of Financial Journalists (NAFIJ) held a seminar on Tuesday regarding the economic impact of the West Asian conflict. Experts, including Nepal Rastra Bank (NRB) Executive Director Ram Sharan Kharel, warned that the war adds new challenges as the economy was just recovering from the Gen Z protests and the pandemic. While petroleum entrepreneur Shiva Prasad Ghimire noted that immediate fuel shortages are unlikely, commerce expert Rabi Shankar Sainju emphasized the need for Nepal to learn lessons in supply chain security. The conflict threatens long-term employment, income from remittances, and the price of essential commodities imported via India.

Gold Drops Rs 11,000 Per Tola, Silver Also Declines

Gold and silver prices fell sharply on Wednesday, with gold dropping Rs 11,000 per tola (11.66 grams) and silver declining Rs 275, according to the Federation of Nepal Gold and Silver Dealers’ Association. Following the decrease, gold is being traded at Rs 317,600 per tola, equivalent to 11.66 grams. Silver is priced at Rs 5,540 per tola. The decline in the domestic market comes as gold trades at USD 5,154 per ounce in the international market on the same day.