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 Identifies Remittance Dependence as Key Risk to Economic Stability

Nepal Rastra Bank (NRB) has warned that while the external sector appears strong, the economy’s sustainability is at risk due to an over-reliance on remittances. According to the first semi-annual ‘Macroeconomic Report 2026’ released on Saturday, the balance of payments is in a surplus of Rs 5 billion, and foreign exchange reserves have reached Rs 32.42 billion. However, the report stresses that structural challenges, including a trade deficit of Rs 9.55 billion, persist. To ensure long-term stability, the NRB recommends diversifying exports beyond limited items like vegetable oils and improving the effectiveness of capital expenditure.

NRB to Settle Rs 1 Billion Liquidity Auction Tomorrow

Nepal Rastra Bank (NRB) is scheduled to pay back the principal and interest for a Rs 1 billion deposit collection auction tomorrow, Sunday. The NRB conducted the liquidity absorption on Tuesday through a competitive bidding process with a six-day tenure to manage excess funds within the banking system. This financial maneuver coincided with the Ministry of Finance releasing Rs 19.62 billion for election management and security. Despite the liquidity injection from election spending, analysts at the NRB remain cautious as global crude oil prices surged 6% this week, threatening to increase domestic inflation and transportation costs.

Asian Highway Construction Reaches 35% Completion in Nepal

Construction of the Nepal segment of the Asian Highway, connecting Kakarbhitta to Laukahi, has achieved 35% progress within two years of its commencement. The project, funded by a USD 300 million loan from the Asian Development Bank, began on February 2, 2024, and aims to link Bangkok to Karachi via Nepal. Project officials confirmed on Saturday that 21 out of 48 planned bridges and 92 out of 140 box culverts are currently under construction across the eastern and western sections. The 95-kilometer road stretch is scheduled for completion within the next three years to enhance regional connectivity.

Qatar Airways Aircraft Stranded in Kathmandu Amid Middle East Conflict

Two Qatar Airways Boeing 787-9 Dreamliners have been grounded at Tribhuvan International Airport for one week due to the closure of Middle East airspace. The aircraft, which arrived last Saturday, are unable to depart as Qatar, the UAE, Kuwait, and Iran have restricted flight movements following joint military strikes by the USA and Israel. Airport spokesperson Santosh Kumar Basnet stated on Saturday that over two dozen international flights are being cancelled daily. While Qatar Airways has initiated limited relief flights to Europe, Nepal has not been prioritized, leaving thousands of passengers and the two multi-million dollar jets stranded in Kathmandu.

Jhapa Farmers Begin Early Rice Planting Using Modern Machinery

Farmers in Jhapa have commenced the Chaite rice from March to mid-April rice planting season, increasingly adopting mechanical transplanters to reduce labor costs. The Agriculture Knowledge Center in Jhapa reported on Saturday that 10 modern machines are currently operating across the district through cooperatives. While 20,000 hectares were cultivated last year, officials anticipate a slight decrease in acreage as farmers shift toward more profitable cash crops and maize. Local farmers, such as Khyam Acharya, expressed concerns over low market prices, noting that current rates of Rs 700 to Rs 800 per 40 kilograms fail to cover the rising costs of production.

Impact of Elections on Nationwide Economic Activities

The House of Representatives election has significantly impacted Nepal’s economic momentum, particularly as Nepal Rastra Bank data reveals a stagnation in private sector credit despite high liquidity. The Rs 19.62 billion spent on the polls has provided a temporary cash infusion, but structural issues like the Rs 9.55 billion trade deficit remain unaddressed. While the Asian Highway and Tanahu Hydropower projects have resumed, the week-long flight suspensions in the Middle East compounded by the election period have crippled the tourism sector, with hotel cancellations hitting 70%. Furthermore, the surge in global oil prices during the election week has already forced regional neighbors like India and Pakistan to hike energy costs, signaling imminent inflationary pressure for Nepal.

US Dollar Hits Historic High as Exchange Rates Fluctuate

The US dollar reached a record high of Rs 147.15 earlier this week, with today’s rate fixed at a buying price of Rs 146.49 and a selling price of Rs 147.09. Nepal Rastra Bank reported on Saturday that while the dollar, pound sterling, and Gulf currencies like the Kuwaiti dinar (selling at Rs 480.37) have strengthened, the euro and Australian dollar saw slight declines. The pound sterling selling rate is currently Rs 196.22. The central bank noted that these fluctuations are influenced by international geopolitical tensions and the fixed exchange rate with the Indian rupee.

Middle East Conflict Clouds Nepal’s Tourism at Spring Peak

Cancelled flights and postponed trips due to the Middle East conflict have shaken Nepal’s tourism at the start of the peak spring season. Hotel occupancy in Thamel has dropped from 90 to below 50 percent, with online cancellations exceeding 70 percent. Key Gulf transit routes remain disrupted, affecting over 75 flights. While some tourists are postponing, others are rerouting from the Middle East to Southeast Asia, including Nepal. The Nepal Tourism Board warns arrivals could fall 10-15 percent in 2026, threatening jobs and revenue, though officials remain cautiously optimistic that demand will rebound once stability returns.

India Defies Sanctions to Continue Russian Oil Imports; Nepal under Pressure

The Indian government announced on Saturday that it will continue importing Russian crude oil regardless of external pressure or permissions from other nations. As the Middle East conflict drives global oil prices up by 30% this week, India is utilizing its reserve of 250 million barrels to mitigate supply shocks. Despite the USA temporarily delaying sanctions on Russian oil to stabilize markets, New Delhi maintains that its energy policy is dictated solely by national interest. Domestically, India increased LPG cylinder prices by 7% today, as the country remains the world’s second-largest LPG buyer, sourcing 90% of its supply from the volatile West Asian region.

Fuel Prices Surge by 20% in Pakistan Due to Gulf Crisis

Pakistan implemented a massive 20% increase in fuel prices today, Saturday, as a direct consequence of the escalating military conflict in the Gulf. Petrol prices rose by PAK 55 to reach PAK 335.86 per liter, while diesel surged to PAK 321.17. The Pakistani government cited the rising cost of international crude oil following strikes in Iran as the primary driver for the hike. Panic buying has led to long queues at petrol pumps across the country. In response to the energy crisis, authorities are preparing to launch “work from home” and distance learning initiatives to reduce national fuel consumption.

Eurozone Growth Slows to 1.4% in 2025, EU Figures Revised

The eurozone economy expanded 1.4 percent in 2025, slightly below the earlier estimate of 1.5 percent, according to revised data from Eurostat. Quarter-on-quarter growth in the final three months slowed to 0.2 percent, down from 0.3 percent. For the 27-country EU, growth was adjusted to 1.5 percent, lower than the prior 1.6 percent estimate, with last-quarter growth also at 0.2 percent. Ireland experienced a sharp contraction of 3.8 percent in Q4, far exceeding the previously forecasted 0.6 percent decline, highlighting uneven performance across member states.