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 Oil Prices Surge 3%, Expected to Rise Further

Crude oil prices jumped over 3% in early trading on Thursday, as fears of prolonged supply disruptions grew. Brent crude rose by 3.26% to reach USD 83.99 per barrel. The closure of the Strait of Hormuz, a vital waterway between Iran and Oman that handles 20% of global oil consumption, has forced nations to seek alternative routes. While US President Donald Trump offered naval escorts for tankers, Iran’s Revolutionary Guard claimed full control over the strait. This volatility significantly threatens Nepal, which remains entirely dependent on India for its fuel supplies.

Middle East War Suspends Flights to Nine Countries

The Tribhuvan International Airport office reported that international flights to nine countries have been halted due to the Middle East conflict. Until Wednesday, at least 104 scheduled flights were canceled, affecting approximately 17,000 passengers. Airport spokesperson Santush Kumar Basnet confirmed that airspace restrictions in Qatar, the UAE, Kuwait, Iraq, and Israel remain in place. While Fly Dubai attempted to resume operations, airlines like Qatar Airways and Nepal Airlines canceled their flights. Impacted passengers can reschedule or refund tickets without fees within 45 days of service resumption.

Middle East Conflict Poses Risk to 41% of Nepal’s Remittance

The escalating war in the Middle East threatens 41% of Nepal’s total remittance inflows, which originate from 15 countries in that region. Remittance currently accounts for approximately 25% to 27% of the country’s Gross Domestic Product (GDP). In the first six months of the current fiscal year, inflows reached Rs 10.629 billion. Nepal Rastra Bank (NRB) Executive Director Ram Sharan Kharel noted that while current foreign exchange reserves can cover 18.1 months of imports, a prolonged war would strain the economy. Major labor destinations include the UAE with 700,000 workers and Saudi Arabia with 384,865 workers.

Qatar Airways Announces Limited Relief Flights Amid Airspace Crisis

Following joint military strikes by Israel and the USA on Iran, Qatar Airways announced limited relief flights starting Thursday to rescue stranded passengers. These flights will operate from Muscat to European cities including London Heathrow, Rome, and Amsterdam, as well as from Riyadh to Frankfurt. However, Nepal is not included in this relief phase, leaving two wide-body aircraft grounded in Kathmandu since Saturday. Meanwhile, Fly Dubai resumed point-to-point service to Kathmandu on Wednesday night. Regular Qatari operations remain suspended until the Civil Aviation Office declares the airspace safe for commercial travel.

Customs Offices Reopen Following 72-Hour Election Closure

The 72-hour nationwide closure of customs offices, implemented for the House of Representatives election, concluded at 6:00 PM today. The shutdown, which began at midnight on March 2, successfully restricted non-essential movement to ensure security. Director General Shyam Prasad Bhandari confirmed that while only emergency cargo like medicine and fuel moved during the polls, regular operations are now resuming. The Birgunj Customs Office and other major points have begun processing private and commercial imports again, ending the temporary halt that facilitated a peaceful voting environment across all border regions.

Department Directs Gold Explorers to Halt Illegal Mining Practices

The Department of Mines and Geology issued a strict directive on February 27, ordering gold exploration licensees to stop unauthorized activities. Following reports from local municipalities and media, the department found companies using heavy machinery to divert river flows and employing unapproved foreign technicians, violating their approved work plans. Under Section 11(a) of the Mines and Minerals Act, 1985, activities causing adverse environmental impacts are prohibited. The department warned that failure to comply with the Mines and Minerals Rules, 1999, specifically regarding public interest and environmental safety, will result in the immediate cancellation of exploration licenses.

Nepal Tourism Board Operates Free Shuttle Buses for Air Travelers

To facilitate movement during the general election, the Nepal Tourism Board launched a free shuttle bus service for air passengers on Thursday. Operating from 5:00 AM to 7:00 PM, the buses connect Tribhuvan International Airport to major hotels and hubs in Kathmandu. Three specific routes cover areas including Thamel, Boudha, and Patan. For instance, Bus BA 1 PA 1378 services the Kantipath route, while BA 1 PA 1320 covers Maharajgunj. Acting Director Sunil Sharma urged travelers to use these coordinated services to ensure they reach their destinations safely despite the nationwide vehicle restrictions.

Finance Commission Opposes Cuts to Provincial and Local Grants

The National Natural Resources and Fiscal Commission has warned the federal government against cutting equalization grants for provinces and local units. The Ministry of Finance recently proposed providing only 20.43% of the third quarterly installment, citing a revenue collection rate of only 81.75% of the annual target. The Commission argued that under Article 60 and Article 251 of the Constitution of Nepal, its recommendations for fiscal transfers are mandatory. For the current fiscal year, the government had allocated Rs 417.825 billion for four types of grants, representing 21.27% of the total federal budget.

Private Sector Optimistic for Economic Recovery Post-Election

The country’s private sector is showing high enthusiasm for today’s election, viewing it as a gateway to political stability and economic transformation. Following the Gen Z protests in September 2025 and subsequent policy uncertainty, business leaders expect a new government to restore investor confidence. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that while elections don’t instantly fix the economy, they provide the policy predictability necessary for long-term investment. Industry leaders are urging the incoming leadership to prioritize infrastructure projects and export incentives to counter the dual impacts of domestic unrest and the ongoing Middle East conflict.

Commercial Coffee Farming Expands in Bhojpur District

Farmers in Bhojpur have transitioned from traditional crops to commercial coffee production due to improved market access. The federal government has provided a special grant of Rs 33 million in the current fiscal year to expand farming across municipalities like Ram Prasad Rai and Hatuwagadhi. Local farmer Manoj Rai noted that collective farming on 11192.12 square meters has proven more profitable than maize or potatoes. According to vendor Sunil Shrestha, the organic coffee is exported to Kathmandu and international markets, significantly increasing local income and establishing coffee as a primary livelihood.

Country Promotes Multi-Dimensional Tourism at ITB Berlin 2026

The country is participating in ITB Berlin, the world’s leading travel trade show, from March 3 to March 5, to reposition itself in the global market. Robin Regmi, Senior Officer at the Nepal Tourism Board, emphasized that Nepal is evolving beyond trekking into a destination for wellness, adventure sports, and cultural heritage. The Nepal Pavilion, inaugurated by Acting Ambassador Sagar Phuyal, hosts 25 private companies. The board’s strategy focuses on “One Destination, Many Experiences,” highlighting community-based homestays and spiritual retreats. This strategic presence aims to build new international partnerships and establish Nepal as a must-visit destination despite current regional geopolitical challenges.

Nagdhunga-Sisnekhola Tunnel Construction Halted for Elections

Construction of the Nagdhunga-Sisnekhola tunnel project has been suspended from Tuesday to Saturday as workers traveled to their home districts to vote. Project Director Saujanya Nepal stated that the temporary halt coincides with both the Holi festival and the House of Representatives election. While 98% of the work is complete, including the 2,688-meter main tunnel and the 2,557-meter emergency tunnel, final landslide control efforts in Dhading are currently on hold. Normal operations by the Japanese contractor, Hazama Ando Corporation, are scheduled to resume this Sunday after the electoral process and worker returns are finalized.

India Faces Energy Supply Disruptions Amid Regional Instability

India’s largest liquefied natural gas (LNG) importer, Petronet LNG, warned of potential operational disruptions as ships cannot safely reach Qatar Energy’s Ras Laffan port through the Strait of Hormuz. Consequently, Petronet issued a “Force Majeure” notice to Qatar Energy and domestic clients like Indian Oil Corporation. While India holds crude oil reserves for approximately 25 days and LNG for three weeks, analysts warn that rising costs will strain South Asian economies. BMI analysts noted that Sri Lanka and India are particularly vulnerable due to high import dependence and existing financial pressures.

Crude Oil Prices Set to Surpass $100 per Barrel

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF) and special representative to the Russian President, stated on Thursday that crude oil is certain to exceed USD 100 per barrel. Tensions in the Middle East, following widespread military strikes by the USA and Israel on Iran starting February 28, have disrupted global energy markets. With the deaths of Ayatollah Ali Khamenei and other senior leaders, Iran has retaliated against US military bases in Bahrain, Jordan, Qatar, and Saudi Arabia. Consequently, Murban Crude has already reached USD 96.

Gold Price Plummets Daily as US Dollar Strengthens

The price of gold in Nepal dropped by Rs 11,000 in a single day yesterday due to a surging US dollar. As the US dollar hit a record high of INR 92, the Nepali rupee weakened, causing international investors to shift from gold to dollars. In the local market, gold fell from Rs 328,600 to Rs 317,600. Kiran Bhai Bajracharya, secretary general of the Federation of Nepal Gold and Silver Dealers’ Association, noted that regional conflicts have also shifted investments toward crude oil, further reducing local gold demand.