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:

NEPSE Edges Up as Late Recovery Lifts Market

On Monday, the NEPSE index rose 5.01 points, or 0.17%, to close at 2,936.56 after recovering from a day-long decline. The Sensitive Index slipped 0.05% to 505.02, while the Float and Sensitive Float indices posted marginal gains. A total of 38.07 million shares of 342 companies were traded in 156,381 transactions, generating a turnover of Rs 15.78 billion, down from Rs 23.59 billion on Sunday. Share prices of 102 companies increased, 154 declined, and eight remained unchanged. Gains were led by manufacturing, hydropower, and investment, while banking, tourism, and trading sectors recorded losses.

NRB Study Recommends Five-Phase Capital Account Liberalization

A study by the Foreign Exchange Management Department of Nepal Rastra Bank (NRB) has recommended a five-phase approach to capital account liberalization. The report emphasizes the mandatory establishment of a financial safety net before opening the account. In the first phase, the study suggests allowing only low-volatility, long-term strategic equity investments, followed by permitting non-resident Nepalis to invest in listed securities. The third phase proposes portfolio investments in local currency government bonds, while the fourth phase suggests opening short-term external debt and cross-border financial investments. Full liberalization is recommended only in the final stage, supported by a transition to a “managed floating” exchange rate system based on a basket of the Indian rupee, Chinese yuan, and US dollar.

8-Month Trade Deficit Widens Despite Export Growth

The country’s trade deficit persists as imports grew by 12.54% and exports by 20.83% during the first eight months of the current fiscal year 2025/26. Total imports reached Rs 1.289 trillion, while exports totaled Rs 191.11 billion. India remains the largest trading partner, accounting for Rs 156.66 billion of total exports. Processed soybean oil dominated exports at 40%, totaling Rs 75.77 billion, though experts note low value addition as raw oil is largely imported. Petroleum products remain the biggest import at 17% of the total, costing Rs 209.99 billion. Nepal currently faces a trade deficit with 120 nations.

LPG Imports Rise Despite Half-Cylinder Distribution Policy

The country saw its highest liquefied petroleum gas (LPG) imports in three months during Falgun, despite the Nepal Oil Corporation (NOC) implementing a half-cylinder sales policy. Department of Customs data shows 51,192 tons of gas were imported in between February and mid-March, up from 47,460 tons by mid-January. Total imports for the current fiscal year stand at 372,282 tons, an increase of 10,187 tons over the same period last year. While the NOC cited supply disruptions and Middle East tensions for restricting distributions since March 12, the data suggests that total volume has actually increased year-on-year.

Paddy and Rice Imports Hit Rs 28 Billion in 8 Months

The country’s dependency on food imports continues to rise, with paddy and rice imports reaching nearly Rs 28 billion in the first eight months of the current fiscal year. According to the Department of Customs, the country imported rice and paddy worth Rs 27.904 billion during this period. The breakdown includes 384.8 million kg of paddy valued at Rs 14.14, at least 123.9 million kg of rice worth Rs 7.915 billion, and over 51.9 million kg of Basmati rice worth Rs 5.843 billion. From February 13 to March 14 alone, imports exceeded Rs 2.50 billion.

Department of Mines Grants Extraction Permits to 166 Firms

The Department of Mines and Geology has granted extraction permits to 166 domestic and international companies for 16 types of minerals, including limestone, red clay, and iron. Information Officer Narayan Banskota stated that nearly 100 of these permits are for limestone mines. The department aims to boost industrial production and economic growth through mineral exploration of substances like tourmaline, talc, and magnesite. Despite these permits, Banskota noted that geographical challenges, a lack of advanced technology, and high capital requirements remain significant hurdles. Permits are issued only after ensuring environmental impact assessments are met and local benefits are secured through specific royalty agreements.

Insurance Authority Penalizes Firms Over Hilton Hotel Case

The Nepal Insurance Authority has penalized two insurance companies and a broker for violating reinsurance regulations regarding the Hilton Hotel arson claim. Himalayan Re-Insurance and The Oriental Insurance were fined Rs 200,000 each, while Alliant Reinsurance Broker’s license was suspended for three months. Additionally, Nepal Re-Insurance Company CEO Surendra Thapa was cautioned. Spokesperson Pujan Dhungel Adhikari stated the firms illegally attempted to transfer a Rs 6 billion liability from the private Himalayan Re to the state-owned Nepal Re. The hotel was destroyed during the Gen Z protests on September 8 and 9, 2025. The case has been referred to the Commission for the Investigation of Abuse of Authority.

Unseasonal Rains Cause Rs 6 Crore Loss to Mahottari Brick Kilns

Unseasonal rainfall over the past weekend has caused damages exceeding Rs 60 million to brick industries in Mahottari. According to the Federation of Nepal Brick Industries, Mahottari, ready-to-bake bricks across three dozen kilns were destroyed. Owners stated that the sudden rain washed away investments ranging from Rs 800,000 to Rs 2.2 million per unit. The association is currently collecting loss details to request compensation and subsidies from the government, noting that this peak production season has instead resulted in a severe financial crisis.

Windstorms Cause Rs 2.9 Million Loss to Okhaldhunga Farmers

Recent windstorms and heavy rainfall in Okhaldhunga have caused agricultural losses totaling Rs 2.8 million. Information Officer Indra Rai from the Agriculture Knowledge Center reported that 39 plastic tunnels and vegetable structures were destroyed, accounting for Rs 2.4 million of the total damage. The storms affected 29 commercial farmers across Siddhicharan Municipality and Manebhanjyang Rural Municipality, destroying crops such as tomatoes, cauliflower, and chilies. Farmers noted that most affected growers lacked crop insurance, making it difficult to claim compensation. The center is currently collecting detailed records to coordinate relief efforts with relevant government agencies, as the initial figures are expected to rise as more reports arrive from remote areas.

ISPAN Welcomes Decision on Internet Maintenance Tax Waiver

The Internet Service Providers Association of Nepal (ISPAN) has lauded a recent decision by the Office of the Attorney General regarding telecommunications service charges. The ruling clarifies that under the Telecommunications Regulation 1997, service providers can allocate up to 50% of fixed broadband fees as maintenance charges, which are exempt from telecommunications service charges (TSC). ISPAN President Sudhir Parajuli stated that this legal interpretation prevents additional financial burdens on consumers and ensures the industry’s survival. The association emphasized that previous demands for extra taxes on maintenance were baseless, and this decision supports Nepal’s goals for affordable internet and digital democracy.

Tulsipur Fails to Meet Revenue Target

Tulsipur Sub-Metropolitan City in Dang has collected only Rs 166.1 million in revenue during the first eight months of the current fiscal year, falling significantly short of its Rs 732 million target. Revenue Chief Karna Bahadur Hamal attributed the decline to the non-renewal of multi-year contracts for herbs, scrap, and bus park infrastructure. Administrative delays were exacerbated by the Gen Z protest, which reportedly led to the destruction of contract files and reduced land revenue collection. Furthermore, delays in environmental impact assessments have stalled river-based material extraction contracts. Of the 157 registered construction businesses in the city, only 59 have renewed their licenses, further limiting competitive bidding and local income.

Korala Customs Collects Rs 5.71 Billion Revenue

The Mustang Customs Office at the Korala border has collected Rs 5.711 billion in revenue from September 16, 2025, to March 21. Office Chief Ramesh Khadka reported that imports totaled Rs 12.17 billion, while exports to China were valued at Rs 203 million. The border has seen the clearance of 2,347 electric vehicles and 1,804 cargo containers. Originally utilized as an alternative route following the closure of Rasuwagadhi and Tatopani due to landslides, the Korala pass was fully operationalized by the government and now significantly contributes to national revenue compared to its previous annual collection of Rs 1.5 million.

Banke Police Recover Rs 30 Million in Fines from Fugitives

The Banke District Police Office has arrested 270 fugitives and collected Rs 33.5 million in fines over the last six months of the current fiscal year. According to the police, the convicts were also sentenced to a combined 125 years of imprisonment. Additionally, authorities recovered Rs 19.5 million from customs evasion and Rs 12.7 million from traffic violations. During this period, 212 individuals were arrested for drug trafficking, with significant seizures of brown sugar and nitrazepam. Notable arrests include Niraj Shahi, wanted for an attempted murder in Nepalgunj on October 23, 2025.

Dharara Collects Rs 110 Million Revenue in 15 Months

Dharara has generated Rs 110.7 million in revenue since reopening to the public 15 months ago. Unit Chief Mahesh Rai stated that Rs 5.95 billion was collected in the first eight months of the current fiscal year alone. A total of 605,391 people have visited the landmark since November 24, 2024, with daily crowds reaching 2,000 on holidays. While the tower is open from 8:00 AM to 8:00 PM, construction by Raman Construction is only 85% complete, with museum and courtyard work ongoing. Entry fees are set at Rs 200 for locals, Rs 500 for SAARC tourists, and Rs 1,000 for others.

Agriculture Limited to 70% of Arable Land in Karnali

Only 69.71% of the total arable land in Karnali Province is currently under cultivation, according to the Ministry of Land Management, Agriculture, and Cooperatives. Out of 3 million hectares of total land, only 287,761 hectares are considered cultivable, with 87,159 hectares remaining fallow. Mukunda Sharma, an agriculture officer, stated that year-round irrigation covers only 38,233 hectares. District data reveals significant disparities; for instance, Dolpa cultivates only 5,970 hectares of its 788,900 hectares, while the provincial capital, Surkhet, cultivates 35,010 hectares. The ministry emphasized that expanding irrigation to the 30,407 hectares currently receiving only partial water is critical for increasing regional food production.

Local Unit Launches Digital Smart Agriculture Project

Modi Rural Municipality in Parbat has introduced the Digital Smart Agriculture System Project to modernize local farming. Under the Chief Minister Innovation Partnership Program, the municipality is offering subsidies of up to 75% for orange, coffee, and cardamom seedlings and processing centers. Major Administrative Officer Baburam Puri stated that irrigation technology improvements, including drip systems, are eligible for 90% grants. Additionally, local cash crops like ginger and turmeric receive 90% subsidies for seed and manure management. Chairperson Hiradevi Sharma urged farmers to submit proposals with land ownership documents and tax clearances to participate, aiming to increase production while reducing labor costs through modern digital practices.

Local Unit Implements 113 Infrastructure Projects

Nisikhola Rural Municipality in western Baglung has moved 113 of its 171 planned infrastructure projects into the implementation phase. Chief Administrative Officer Jeevan Pun stated that development work has accelerated following the release of budgets, which were previously stalled due to election codes of conduct. Notably, 15 projects in Ward 7 have already been finalized. The municipality successfully reduced its arrears by Rs 70 million last year and has already cleared an additional Rs 11 million this year by ensuring timely monitoring and transparent consumer committee orientations. Key investments for the current year include Rs 5 million for the expansion of the administrative building and another Rs 5 million for the conservation and tourism promotion of Riga Lake.

Campaign Launches to Boost Tourism in Pokhara

The Hotel Association Nepal (HAN) Pokhara, in coordination with the Nepal Tourism Board, has launched the ‘Let’s Go to Pokhara’ campaign targeting major cities in eastern Nepal. Running from March 23 to March 27, the 19-member delegation will visit Birgunj, Hetauda, Biratnagar, and Ilam. Association President Laxman Subedi stated the campaign aims to invite locals to the 21st Phewa New Year Festival, scheduled for April 12-14. The initiative also seeks to restore direct flights between Pokhara and eastern hubs like Bhadrapur to support the Rs 6 billion investment in Pokhara’s hotel industry, which provides direct employment to 15,000 people.

27th Flora Expo Records Rs 12.2 Million Turnover

The 27th Flora Expo concluded on Sunday at Bhrikutimandap, recording a total turnover of Rs 12.2 million. Organized by the Floriculture Association Nepal (FAN), the four-day event attracted 60,007 visitors. FAN Treasurer Raj Krishna Bajgain noted that the final day alone saw 12,200 attendees and Rs 3.1 million in sales. Currently, the flower industry in Nepal has an investment of over Rs 8.83 billion across 52 districts. While domestic production is growing, evidenced by a 54.27% drop in imports to Rs 127 million, exports surged by 109.16% to reach Rs 21.3 million this year.

Suryabinayak-Dhulikhel Road Expansion Reaches 67% Progress

The expansion of the Suryabinayak-Dhulikhel road to six lanes has achieved 67% physical progress. The 16-kilometer project, divided into two sections, includes service lanes and 2.5-meter sidewalks. The Sanga-Dhulikhel segment, managed by Lama Construction, has reached 65% completion, while the Suryabinayak-Sanga section stands at 55%. Project Engineer Bishnu Prasad Khanal noted that work in areas like Banepa and Sanga is accelerating following the resolution of local disputes over centerline markings. Although the original deadline passed in December 2025, a one-year extension was granted. Construction of the Mahadev Khola bridge is ongoing, while designs for two other bridges were recently finalized after addressing local demands and technical hurdles.

Road Widening Begins on 17-km Ghorahi-Lamhi Section

The Division Road Office Dang has commenced widening works on a 17-kilometer stretch of the Ghorahi-Lamhi road. The project, aimed at improving safety in narrow and high-risk sections between Kuirepani and Arjun Khola, involves an investment of Rs 200 million. Division Chief Dipendra Bista confirmed that contracts were awarded to Munal-KB-Sunil & Bijay JV for the Kuirepani-Masotkhola section and Easy-Alkapuri JV for the Masotkhola-Arjun Khola segment. The work focuses on hill cutting and the construction of retaining walls to increase road width and improve visibility at dangerous turns. Authorities expect these improvements to significantly reduce the risk of accidents caused by the increasing volume of heavy traffic and the narrow geography of the highway.

Snow Rivers Launches IPO for Locals and Migrants

Snow Rivers Limited began issuing its IPO on Monday for project-affected residents and overseas Nepali workers. The hydropower firm is offering 937,500 shares at Rs 100 per share to locals in Taplejung and Panchthar districts. Additionally, 93,750 shares are available for migrant workers. Residents of Sirijangha Rural Municipality-8 are designated as highly affected. Managed by Sanima Capital, the subscription for foreign workers closes on March 26, while locals have until April 6 to apply. ICRA Nepal has assigned a Double B Plus rating, indicating moderate risk in meeting financial obligations.

Sopan Pharmaceuticals Opens IPO for Foreign Laborers

Sopan Pharmaceuticals Limited launched its initial public offering (IPO) on Monday, targeting Nepalis employed abroad. The company received approval to issue 4,290,000 shares, valued at Rs 429 million, representing 25% of its issued capital. In this first phase, 429,000 shares are reserved for migrant workers, while 214,500 and 171,600 shares are allotted to mutual funds and employees, respectively. Investors can apply for a minimum of 10 to a maximum of 11,000 shares via the Mero Share portal until March 26. NMB Capital is managing the issuance.

Gold Prices Plunge by Rs 6,500 Per Tola Today

On Monday, the price of gold dropped by Rs 6,500 per tola (11.66 grams). The Federation of Nepal Gold and Silver Dealers’ Association has set the price of gold at Rs 275,500 per tola for Monday. On the previous day, the price of gold had dropped by Rs 12,500 per tola. On the previous day, it was traded at Rs 282,000. Last Monday, it was traded at Rs 309,500 per tola. On January 29, the price of gold reached a record high of Rs 339,300 per tola so far.