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:

Govt. Resumes Re-entry Labor Permits for Seven Countries

The Ministry of Labor, Employment, and Social Security has resumed issuing re-entry labor permits for Nepali workers employed in Saudi Arabia, the UAE, Qatar, Oman, Yemen, Jordan, and Turkey. Following a decision on Tuesday, based on Ministry of Foreign Affairs recommendations, workers home on leave can now return to their jobs. However, permits remain suspended for six nations, including Israel, Iraq, and Lebanon, due to regional instability. This move addresses high demand from migrant workers whose previous permits expired while they were in Nepal following the March 1 suspension.

NRB Expands Priority Sector Lending to Include Tourism and IT

Nepal Rastra Bank (NRB) has amended its priority sector lending guidelines, adding tourism, information technology, and export-oriented industries based on local raw materials. Under the new circular issued after the mid-term review, commercial banks must allocate 10% of their loans to agriculture by mid-January 2027. Additionally, 20% must be directed toward the newly expanded priority sectors. Development banks and finance companies are required to maintain 20% and 15%, respectively. The NRB aims to mobilize excess liquidity into productive sectors while providing flexibility for banks meeting agriculture targets.

NRB Extends Loan Trading Window for Infrastructure Banks

Nepal Rastra Bank (NRB) has extended the deadline for Infrastructure Development Banks (IDBs) to buy and sell loans by three years. According to the revised unified directive, IDBs can now engage in loan purchases, repurchases, and takeovers until mid-July 2028. Previously, this facility was limited to the first four years of operation. Banks can trade infrastructure-related loans exceeding Rs 300 million, provided they do not exceed one-third of their total loan limit from the previous quarter. The directive mandates that such transactions are prohibited during the final month of the fiscal year to maintain financial stability.

Nepal Faces Rs 1 Billion Economic Risk from LDC Graduation

The country is set to graduate from the Least Developed Country (LDC) status in November 2026, but an International Labour Organization report warns of significant risks. Graduation could result in a USD 988 million loss and the disappearance of 132,000 jobs over five years due to the loss of trade preferences. The manufacturing sector, particularly carpets and textiles, faces a potential 76% export decline. While GDP is projected to grow to Rs 29 billion by 2030, the report stresses that investing in tourism could offset losses by creating 111,000 new jobs.

Air Dynasty Helicopter Crashes in Khotang Today

An Air Dynasty helicopter, registration 9N-AFQ, crashed in Balbesi, Khotang, on Wednesday. The Civil Aviation Authority of Nepal (CAAN) reported that the aircraft departed Kathmandu at 11:00 AM and crashed at 11:51 AM. The helicopter was carrying one pilot and five passengers. According to official reports, one passenger sustained minor injuries, while the other five individuals are safe. A rescue helicopter reached the site immediately following the incident. Authorities confirmed the flight was not transporting any deceased remains, and an investigation into the cause of the crash is expected.

Conflict Halts Labor Permits for 12 Major Destinations

The ongoing United States-Israel-Iran conflict has severely impacted Nepali foreign employment, leading to a suspension of labor permits for 12 major destinations. The Department of Foreign Employment reported that only 52,944 workers have received permits in March so far, down from an average of 73,000 in previous months. Permits are currently frozen for countries including the UAE, Qatar, Saudi Arabia, and Kuwait due to rising insecurity in the Gulf region. Consequently, departures to the UAE dropped to 11,492, while Qatar and Saudi Arabia saw permits nearly halved compared to February.

International Unrest Triggers Price Hikes in Essential Goods

Global supply chain disruptions caused by conflicts in West Asia and the Russia-Ukraine war have led to significant price increases in Nepal. Shipment surcharges have risen by nearly USD 2,000 per container, impacting both construction materials and kitchen essentials. In the construction sector, iron bars rose by Rs 5 per kilogram and cement by Rs 25 per bag. Additionally, plastic raw materials saw a 25% to 30% hike, while cooking oil prices jumped by 20%. Business leaders warn that continued international instability could further inflate local market costs.

Middle East Conflict Drives Up Cement and Steel Prices

Construction material prices in Nepal have surged due to the ongoing Israel-Iran conflict. Over the last four days, both cement and steel rods have seen a price hike of Rs 10. OPC cement has risen from Rs 680 to Rs 690 per bag, while PPC cement increased from Rs 780 to Rs 790. Steel rods, previously priced at Rs 95 per kg, now cost Rs 105. Contractors have noted that further escalations in the Middle East could lead to additional price volatility. These increases are expected to raise overall construction costs for residential and commercial projects across the country.

Industry Department Issues Ultimatum to 11 Trademark Violators

The Department of Industry has issued a seven-day ultimatum to 11 Nepali companies accused of trademark infringement by multinational giants like Coca-Cola, Zoom, and Hugo Boss. The Coca-Cola Company (USA) filed complaints against Premier Organs for the “Palpal Cola” brand and Pathibhara Food for “Cool Cola.” Similarly, Zoom Communications and Hugo Boss challenged local misuse of their brand names. If written responses with evidence are not submitted within a week, the department will proceed with unilateral legal action under the Summary Procedure Act, 1972. This crackdown signals a tightening of intellectual property enforcement in Nepal.

NRB Allows Prepaid Cards for Road Toll Payments

Nepal Rastra Bank (NRB) has amended its unified payment directives, allowing commercial banks to issue RFID chip-based prepaid cards for road toll collection. This move aims to eliminate the hassle of cash payments for travelers and minimize potential revenue leakages in the government’s treasury. According to the NRB directive, these cards will be used to collect fees on designated roads and road sections specified by the government. By digitizing the payment process, the central bank expects to enhance transparency and efficiency in transport infrastructure management, ensuring that all collected tolls are accurately recorded and deposited into state accounts.

Rudraksha Trade Generates Rs 1 Billion Annually in Bhojpur

The Rudraksha trade has become a major economic driver in Bhojpur, bringing in approximately Rs 1 billion annually. According to Manoj Chapagain, president of the Rudraksha Traders Association, rare 21-faced beads can fetch up to Rs 6 million each. This year, a rare 29-faced bead was harvested in Dingla. Last year, 2.1 million kg was sold, with 600,000 kg exported to China. Around 40,000 farmers are involved in the cultivation, which dates back to the fiscal year 1875/76, though concerns regarding theft and market security remain.

3 Companies Fined for Unlawful Trade Activities

The Department of Commerce, Supplies, and Consumer Protection fined three companies for violating the Consumer Protection Act, 2018. During field inspections, Ektagram Store in Mahalaxmi-7 was fined Rs 20,000. Additionally, Kirana Ghar Traders and Suppliers and Ganapati Traders and Suppliers, both located in Babarmahal, Kathmandu, were each fined Rs 5,000. The department also issued reformative directives to 19 other firms. These actions are part of an ongoing monitoring campaign to control illegal trade activities and ensure market compliance for essential food items and daily consumer goods.

Authorities Halt Milk Sales and Fine Three Firms

The Department of Food Technology and Quality Control suspended sales at Sitaram Gokul Milks in Kirtipur after discovering substandard fat content. While government standards require 3.0% fat in processed milk, the industry’s logs showed only 1.4%. Director Dr. Balkumari Sharma confirmed that 519 crates of batch number 2,861 were seized. Separately, the Department of Commerce, Supplies and Consumer Protection fined three firms in Kathmandu and Lalitpur on Tuesday for consumer rights violations. Ektagram Store was fined Rs 20,000, while two other suppliers were fined Rs 5,000 each.

Nepalgunj Customs Misses Revenue Target Despite Growth

The Nepalgunj Customs Office collected Rs 12.754 billion in the first eight months of the current fiscal year, a slight increase of Rs 94.7 million over the previous year. However, this figure represents only 80.88% of the Rs 15.771 billion target set for the period ending March 14. Information Officer Pabitrakumar Khadka noted that low capital expenditure and declining imports have hindered revenue. Foreign trade totaled Rs 53.916 billion, but a staggering 96.28% trade deficit persists as exports remain minimal.

Kailali Customs Collects Rs 5.406 Billion in Eight Months

The Kailali Customs Office in Dhangadhi collected Rs 5.406 billion in revenue during the first eight months of the current fiscal year 2025/26. According to Information Officer Prakash Timilsina, this collection represents 55.67% of the annual target of Rs 9.711 billion. The breakdown includes Rs 2 billion from customs duties and Rs 2.075 billion from VAT. Despite the steady intake, monthly targets have not been met, continuing a trend from the previous fiscal year when only 77.67% of the annual goal was achieved.

Provinces and Locals Propose 2,820 New Projects for Budget

Provincial and local governments have proposed 2,820 new projects for the upcoming fiscal year 2026/27 budget under special and complementary grants. According to National Planning Commission spokesperson Diwakar Luitel, 1,464 projects were submitted for special grants and 1,356 for complementary grants. Local levels dominated the submissions with 2,744 proposals. Funding limits range from Rs 2.5 million to Rs 150 million depending on the local body’s type. The commission also received 678 proposals for ongoing projects. Grants prioritize health, education, and infrastructure based on local revenue capacity.

World Bank Approves $85 Million for Greater Lumbini Project

The World Bank board approved an USD 85 million loan on March 13 for the Greater Lumbini Area Development Project. Spanning Rupandehi, Kapilvatu, and Nawalparasi, the project focuses on heritage conservation at sites like Tilaurakot and Ramgram while boosting tourism infrastructure. According to the Lumbini Development Trust, the funds would improve local livelihoods and climate resilience. The initiative, spearheaded by the Ministry of Urban Development, requires final Cabinet approval to begin. Local municipalities have requested USD 8 million each to ensure transparent and integrated development across the Buddhist Circuit.

Nepal Bank Announces Interest Waiver Scheme for Defaulters

Nepal Bank Limited has launched a new loan settlement scheme offering interest waivers for various categories of borrowers. Customers with bad or written-off loans up to Rs 10 million classified before mid-April 2023 can receive waivers by settling their dues by July 16. According to the bank, borrowers in inactive or active categories after April 14, 2023, are also eligible for waivers if they regularize their loans by April 13. The bank urged eligible clients to utilize this window to clear outstanding principal and interest.

Fixed Deposit Shares Drop as Interest Rates Hit Record Lows

The share of fixed deposits in Nepal’s banking system has dropped to 41.6% of total deposits, down from 52.4% a year ago. Savers are moving funds to ordinary accounts or the share market as weighted average interest rates for commercial bank fixed deposits fell to 3.51% by mid-February. Development banks and finance companies offer 3.97% and 5.01%, respectively. Former Governor Deependra Bahadur Chhetri noted that low returns discourage long-term “lock-ins.” Total deposits reached Rs 76.97 billion, while banks face increased competition and shrinking interest spreads.

FDI Commitments Plunge Following Gen Z Unrest

Foreign Direct Investment (FDI) commitments in Nepal plummeted to just Rs 386 million by mid-March. The Department of Industry links the decline to the September 8 and 9, 2025, Gen Z protests, which caused Rs 86 billion in damages and shattered investor confidence. Total commitments for the year stand at Rs 40.66 billion, nearly half of which arrived in mid-July 2025. Despite the slump, IT industries account for 55% of new registrations. Officials hope the March 5 elections and potential political stability will revive the investment climate.

Lumbini Cabinet Reshuffles Secretaries and Approves Project Bank

The Lumbini Province Cabinet, chaired by Chief Minister Chetan Narayan Acharya in Deukhuri on Wednesday, approved the Provincial Project Bank (Operation and Management) Directive, 2026. Health Minister Khem Bahadur Saru stated the directive will systematize the selection and implementation of priority projects. The meeting reshuffled several provincial secretaries, including Binod Lamichhane to Internal Affairs and Diwakar Bhandari to Social Development. Additionally, 12 health professionals were posted to various hospitals, including Dr. Anup Thapa to Butwal Provincial Hospital and Dr. Mohammad Nurul Hoda to Rapti Provincial Hospital.

Fifty-Two Companies Receive Real Estate Trading Licenses

The Department of Land Management and Archive has issued operating licenses to 52 companies for large-scale real estate transactions. Under the Land Revenue Rules, 1978, companies conducting deals exceeding Rs 30 million in metropolitan areas must obtain an authorization. Director Khimanand Acharya stated that while 151 firms qualified, many have yet to pay the required fees of Rs 500,000 or Rs 1 million. Currently, 95 eligible companies are pending fee payment, while 37 face legal issues or blacklisting. Licensed firms are permitted to operate across six metropolitan and 11 sub-metropolitan cities via the Land Information System.

Windstorm Destroys Rs 30 Million Worth of Banana Crops

A violent windstorm on Monday destroyed banana plantations worth over Rs 30 million across Rautahat. In Chandrapur Municipality-3 alone, crops valued at Rs 15 million were completely lost. Local farmers expressed distress over the lack of crop insurance, noting that insurance companies avoid the sector due to high risks. Although Mayor Sanjay Kumar Kaffle pledged municipal support for insurance initiatives, hundreds of farmers remain financially vulnerable. The disaster affected over 2709050.23 square feet of land, wiping out a year of investment and labor for local commercial growers.

Upgrading Starts for Phalebas to Armadi Road Section

The Kaligandaki Corridor project has begun upgrading the 14-kilometer Phalebas to Armadi section in Parbat. A joint venture, Navakantipur Mainachuli Nana JV, secured the contract for Rs 656.1 million. Side Engineer Pipul Gautam confirmed that the 36-month project will create a double-lane road with a seven-meter-wide blacktopped surface. This section was previously stalled due to budget uncertainty. Once completed, the entire 60-kilometer Parbat stretch of the national pride project will be fully paved, significantly improving north-south connectivity and local trade.

Cabinet Entrusts Army with Bheri Corridor Road Section

The Council of Ministers decided on Tuesday to hand over the construction of the 35-kilometer Lyasikyap-to-Sisaul road section to the Army. Minister for Physical Infrastructure Madhav Prasad Chaulagain stated the decision followed the army’s consent to handle the difficult terrain. Although work on the 317-kilometer Bheri Corridor began in 2008, the link to the Chinese border remains incomplete. Previously, the army opened 118 kilometers of the track, but contractor delays and a five-year environmental impact assessment delay stalled the project.

Sudurpaschim Fails to Spend Rs 55 Million for Lamki Chuha Hospital

At least Rs 55 million allocated to upgrade Lamki Chuha Hospital into a provincial facility remains unspent with only four months left in the fiscal year. The Ministry of Social Development has yet to initiate tenders or personnel management despite a June 9, 2025, federal decision to transfer the 15-bed hospital to the province. A dispute has emerged after the ministry appointed a new management board led by Ram Bahadur Bista, while the municipality continues to run the hospital under Mayor Sushila Shahi. Secretary Dr. Hem Raj Regmi pledged to appoint a medical superintendent soon.

Rs 4 Million Lakh Allocated for Ganga Secondary School

Construction of a four-room concrete building has commenced at Ganga Secondary School in Bardaghat-14, Nawalparasi (Bardaghat Susta Paschim). The Sudurpaschim Province Government’s Ministry of Social Development allocated Rs 4 million for the project in the current fiscal year 2025/26. Provincial Assembly member Bishwa Prem Pathak emphasized that the infrastructure is vital to accommodate the growing number of students and ensure quality education. Local stakeholders and the school management committee are monitoring the construction to ensure the project is completed transparently and within the stipulated timeframe.

Gold, Silver Prices Decline Today

The price of gold has fallen in the market today. According to the price list published by the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has decreased by Rs 2,200 per tola (11.66 grams). The Federation stated that the pure gold, which was traded at Rs 309,900 per tola on Tuesday, is being traded today, Wednesday, at Rs 307,700. Likewise, the price of silver has also declined today. Silver, which was traded at Rs 5,335 per tola on Tuesday, has decreased by Rs 185 today and is being traded at Rs 5,150.