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 Permits Working Capital Loan Rescheduling Until July

Nepal Rastra Bank (NRB) has issued a directive allowing banks and financial institutions to reschedule permanent working capital loans until July 16, the last day of the current fiscal year 2025/26. This one-time facility requires a detailed analysis of the borrower’s cash flow and financial statements. Additionally, the NRB increased the cash credit limit utilization threshold; accounts must now maintain less than 30% (30%) of their loan limit for at least seven consecutive days once a year, up from the previous 10% (10%). For productive industries, the working capital loan limit has been maintained at Rs 40 million, ensuring continued credit access for businesses facing liquidity challenges during the current economic period.

Election Commission Sets 35-Day Deadline for Expense Reports

The Election Commission has directed all candidates and political parties to publicize their election expenditure details within 35 days of the final result announcement. Following the House of Representatives election held on March 5, first-past-the-post candidates must submit reports to their respective District Election Offices, while proportional representation parties must report directly to the Commission. Joint Secretary Narayan Prasad Bhattarai warned that failure to disclose income and expenses as per Section 31 of the Election (Offenses and Punishment) Act 2017 will result in immediate legal action and penalties.

NOC to Sell Half-Filled LPG Cylinders Amid Supply Concerns

Nepal Oil Corporation (NOC) announced it will sell half-filled 7.1 kg Liquefied Petroleum Gas (LPG) cylinders starting today to manage surging demand. The price for a half-cylinder is set at Rs 955. Although imports remain regular, NOC cited irrational hoarding by consumers fearing disruptions due to the Middle East conflict. Similar shortages in India have further fueled domestic anxiety. This temporary measure aims to ensure equitable distribution and prevent artificial shortages. The NOC urged the public to avoid over-purchasing, noting that current stocks are sufficient if distributed fairly across the Kathmandu Valley and other major urban centers.

Regulatory Commission Sets Hearing for Industrial Electricity Arrears

The Electricity Regulatory Commission has scheduled a hearing for March 15 to address the Dedicated and Trunk Line tariff dispute involving Panchakanya Plastic Industries and Panchakanya Steel. The industries are challenging the Nepal Electricity Authority’s decision to bill for past arrears and are seeking compensation. Legal representatives from the Authority’s law department and the affected firms must attend the proceedings. This hearing is a mandatory step before any party can file a formal case in court. The Commission will review existing laws and previous precedents to determine the validity of the premium charges, which have remained a point of contention between the state utility and major industrial consumers.

SEBON Employees Resume Protest for 172nd Day

Employees of the Securities Board of Nepal (SEBON) resumed their daily protest and ‘pen-down’ strike on Thursday after a temporary pause during the election period. The SEBON Employees Union announced that the protest, now in its 172nd day, will include a one-hour daily sit-in from 10:00 AM to 11:00 AM. The union decided on March 12 to intensify the agitation following the expiration of the election code of conduct. The staff continues to demand administrative reforms and the resolution of long-standing internal grievances that have impacted the regulatory body’s operations.

Finance Ministry Caps Upcoming Budget at Rs 18.9 Billion

The National Planning Commission has set the budget ceiling for the fiscal year 2026/27 at Rs 18.9 billion, marking a 4% decrease from the current year. Vice Chairman Dr. Prakash Shrestha attributed the reduction to weak revenue growth and low foreign aid mobilization. Under new guidelines, the Ministry of Finance will prioritize projects ready for implementation within one week of budget approval. Revenue collection for the current year is estimated at Rs 12.4 billion, requiring an 11% (11%) growth rate to meet next year’s Rs 13.78 billion target.

NAC Rescues 272 Citizens from Dubai

Nepal Airlines Corporation (NAC) evacuated 272 Nepalis from Dubai International Airport on Thursday via a special rescue flight. Following joint aerial attacks by the United States and Israel on Iran, which led to a flight ban over West Asian skies since February 28, the government has coordinated several missions. Spokesperson Devendra Pun stated that the aircraft also transported 260 passengers from Kathmandu to Dubai. Another flight is scheduled for Friday to carry 267 passengers to Dubai and return with 164 stranded citizens.

Qatar Airways Announces 143 Special Relief Flights

Qatar Airways has announced at least 143 special flights scheduled between March 13 and March 18. While Qatari airspace remains officially closed due to the ongoing conflict, the national carrier is operating these missions to repatriate citizens and stranded residents to Doha. The flight schedule released on Friday morning focuses on urgent travel needs within the region. Notably, the current list of operations does not include any scheduled arrivals or departures for Kathmandu, as the airline prioritizes transit for those caught in the immediate conflict zone.

Regional Tensions Result in 129 International Flight Cancellations

Civil aviation restrictions in West Asia have led to the cancellation of 129 international flights at Tribhuvan International Airport between March 4 and March 12. Spokesperson Santosh Kumar Basnet reported that flights to Qatar and Kuwait have remained completely suspended since February 28. While FlyDubai and Air Arabia operated 21 flights from the UAE, Himalaya Airlines received permission for only four departures. The airport office estimates daily economic losses exceeding Rs 21 million. Currently, thousands of passengers remain stranded as airlines await safety clearances over Middle Eastern airspace.

CAAN Mandates Specialized Certificates for Recreational Aviation

The Civil Aviation Authority of Nepal (CAAN) has introduced a mandatory Recreational Aviation Operating Certificate (RAOC) for all entities conducting adventure flight activities. Under the new directive, organizers of skydiving, heli-skiing, and parasailing must first obtain a license from the Ministry of Culture, Tourism, and Civil Aviation before applying for the RAOC from CAAN. This regulation aims to standardize safety protocols for recreational aviation across the country. CAAN emphasized that no organization is permitted to operate such activities without these valid legal documents, ensuring a more regulated environment for the growing adventure tourism sector.

Nepal and India Increase Electricity Tariff by 1.5 Percent

The Power Exchange Committee (PEC) has agreed to increase the cross-border electricity tariff by 1.5% for the upcoming year. Nepal Rastra Bank was not involved, as the deal was led by Nepal Electricity Authority Executive Director Hitendra Dev Shakya. Under the new rate, Nepal will pay Rs 8.22 per unit starting in April, up from Rs 8.10. The agreement ensures a supply of up to 350 megawatts from Bihar and Uttar Pradesh, providing critical relief as India’s Day-Ahead Market renewal remains uncertain amid the current West Asian energy crisis.

FNCCI Candidates Offer Foreign Trips to Sway Voters

Candidates for the upcoming Federation of Nepalese Chambers of Commerce and Industries (FNCCI) elections on April 11 and April 12 are reportedly spending millions to attract voters. One candidate for the Commodity Vice President post has offered a four-night, five-day trip to Sri Lanka for 130 voters and their spouses, costing approximately Rs 20 million. Other candidates are organizing retreats in Sukute and five-star hotels in Kathmandu. Observers worry these high costs, roughly Rs 150,000 per voter, disadvantage smaller entrepreneurs.

Bagmati Province Recommended to Cut 701 Staff Positions

The Administrative Restructuring Review Committee has submitted a report to Chief Minister Indra Bahadur Baniya suggesting the reduction of provincial ministries from 14 to eight. The expert team, led by former Secretary Bimal Wagle, also recommended cutting 701 staff positions. This restructuring is projected to save Rs 485.6 million annually, with total savings reaching Rs 16.996 billion over 35 years. The report emphasizes dissolving unnecessary offices like the Provincial Dairy Development Board to ensure fiscal discipline and better governance.

Commercial Bank Loan Disbursement Surges in January

Commercial bank loan disbursement reached Rs 1.05 billion from mid-December 2025 to mid-January 2026, a sharp contrast to the stagnation seen in the other six months of the current fiscal year. Outside of January, total credit expansion across seven months was only Rs 78 billion. Everest Bank CEO Sudesh Khaling noted that this spike is often driven by short-term overdrafts for tax payments and banks rushing to meet mandated sector lending targets to avoid penalties. Total lending by commercial banks stood at Rs 5.157 trillion by February 12.

Nawalparasi Authorities Intensify LPG Market Monitoring

The Nawalparasi (Bardaghat Susta Paschim) district administration has launched a crackdown on LPG black marketing following rumors of potential shortages. Chief District Officer Deepak Raj Nepal directed sellers to maintain customer records and limit sales to one cylinder per person. Monitoring teams involving the Industry and Commerce Association and the Forum for the Protection of Consumer Rights inspected the Aarti Gas and Chandeshwori Gas industries. While supply remains stable, officials warned against artificial price hikes. Authorities also alerted security forces about reports of border-area businesses diverting gas to Indian consumers while denying local supply. Consumers are urged to report any instances of overcharging or hoarding to the administration immediately.

Reconstruction of Narayani Stadium Commences in Birgunj

Formal reconstruction of the Narayani Stadium in Birgunj, Parsa, began on Friday with the demolition of 88 dilapidated parapets. Deepak Kumar Kanu, Chairman of the Parsa District Sports Development Committee, stated that the federal government allocated Rs 40 million in the 2025/26 budget for the first phase. Built in 1985 with a capacity of 35,000 spectators, the stadium has remained in disrepair for over a decade. While current funds cover initial demolition and rebuilding, the committee and Madhesh Province government are seeking additional federal support to transform the facility into an international-standard sports venue.

Chaurjahari Road Division Cancels Bheri River Bridge Contract

The Road Division Chaurjahari has terminated the contract for a motorable bridge over the Bheri River connecting Nalgad Municipality-10 and Aathbiskhot Municipality-5 after nine years of inactivity. The joint venture Mrit Sanjeevani Galva failed to complete the project despite multiple extensions since July 2016. Division Chief Khum Bahadur Bhandari explained that a new tender cannot be issued until the previous contractor pays outstanding fines for delays. This procedural deadlock has frustrated local residents who have waited nearly a decade for the bridge, which is essential for connecting remote settlements to the Bheri Corridor.

Contract Issued for Gorusinge-Chandrauta Road Expansion

The Department of Roads has officially invited bids for the expansion of the 19-kilometer Gorusinge-Chandrauta section into a four-lane highway. Interested firms must submit applications by May 4, including a security deposit of Rs 162.6 million. Funded by a Rs 35 billion soft loan from the World Bank, the project includes building eight bridges and seven wildlife underpasses to protect local biodiversity. This expansion is part of the larger 69-kilometer Butwal-Gorusinge-Chandrauta project, aimed at improving the East-West Highway’s capacity and safety.

Mustan Road Project Stalls After Eight Years

The 17-kilometer road upgrade between Kowang and Jomsom under the Beni-Jomsom-Korla project remains incomplete despite a contract signed eight years ago. The joint venture of Pappu Gauri Parvati, Koshi, and Neupane has failed to complete the final two kilometers of the Rs 700 million project. Project Chief Tejaswi Sharma stated that the construction company is currently paying daily fines of 0.05% of the contract value. If the work does not resume by the mid-April deadline, the Kaligandaki Corridor project office will terminate the contract and initiate new bidding.

MCFMG Begins Organic Fertilizer Production

The Madhyabindu Collaborative Forest Management Group (MCFMG) in Nawalparasi (Bardhghat Susta Purba), the only partnership forest in Gandaki Province, has launched organic fertilizer production using forest underbrush. Chairman Bhagwan Khanal stated that processing invasive bushes helps manage forest health, prevents wildfires, and creates local employment. The initiative aims to provide an organic alternative to chemical fertilizers, supporting sustainable agriculture in the region. By converting waste material into a productive resource, the project seeks to improve soil fertility and increase crop yields for local farmers. This model of forest management combines environmental protection with economic benefits for the surrounding community, promoting long-term ecological and agricultural resilience.

Flood Damage Forces Migration from Olena Agricultural Hub

The once-prosperous agricultural settlement of Olena in Badimalika Municipality-4, Bajura, is facing displacement after the Budhiganga River floods turned fertile lands into desert. Previously a primary vegetable supplier for the Martadi market, the area’s farming land was destroyed in the fiscal year 2019/20. Local farmers reported that many of the original 16 families have already migrated to cities due to the loss of livelihoods. Chief District Officer Dorendra Niraula confirmed that the entire settlement is now at high risk of river erosion, and coordination is underway with relevant authorities to relocate the remaining 13 families to safer ground.

Egg Prices Drop by Rs 40 Per Crate Post-Election

The Nepal Poultry Federation announced a significant reduction in egg prices effective from Friday, citing a drop in consumption following the elections. The price for XL eggs decreased by Rs 40 to Rs 455 per crate. Similarly, large eggs dropped by Rs 35 to Rs 440, and medium eggs fell to Rs 410. The Association noted that while daily production exceeds five million units, the post-election demand slump necessitated the price adjustment across major markets, including Kathmandu, Pokhara, and Dhangadhi, to maintain market stability.

Palpa Cement IPO Allotted to 450,000 Applicants

The IPO of Palpa Cement Industries Limited was allotted on Friday by issue manager Nabil Investment Banking. Out of 2,376,705 valid applications, 450,000 individuals were selected via lottery to receive 10 shares each. The company, which operates a factory in Sunwal, Nawalparasi, produces 2,200 tons of cement daily. For the fiscal year 2024/25, it reported a net profit of Rs 97.3 million and a net worth per share of Rs 135. The IPO raised Rs 450 million to support the company’s production and export operations.

Sopan Pharmaceuticals to Launch IPO for Migrant Workers

Sopan Pharmaceuticals has received permission to issue 4,290,000 shares, totaling Rs 429 million. In the first phase starting March 23, the company will offer 429,000 shares specifically to Nepalis employed abroad. Eligible investors can apply for a minimum of 10 to a maximum of 11,000 shares at Rs 100 per unit until March 26. NMB Capital is managing the issue, which was assigned a Care-NP B rating by Care Rating Nepal.

Slight Decline in Gold, Silver Prices

The prices of gold and silver slightly dropped Friday in the domestic market compared to the prices the previous day. The price of gold has decreased by Rs 2,800 per tola (11.66 grams) and that of silver by Rs 20 per tola today, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of hallmark gold has been fixed at Rs 314,200 per tola, while the price of the same quantity of silver has been set at Rs 5,495. A tola of gold was traded at Rs 317,000 and the same quantity of silver at Rs 5,515 on Thursday.