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 Continues Uptrend, Gains 23.83 Points

The Nepal Stock Exchange (NEPSE) extended its upward momentum on Tuesday, rising 23.83 points, or 0.81%, to close at 2960.40. The Sensitive Index gained 1.97 points to 507.00, while the Float and Sensitive Float indices increased by 0.45% and 0.47%, respectively. A total of 35.82 million shares from 341 companies changed hands, generating a turnover of Rs 14.839 billion. Among 264 companies traded, 136 advanced, 117 declined, and 11 remained unchanged. Banking, finance, hydropower, and mutual funds posted gains, while hotels and tourism, life insurance, microfinance, and non-life insurance saw declines. The trading group surged 9.12%, marking the strongest sectoral rise.

Ministries Directed to Submit Budget Proposals by March 29

The Ministry of Finance has issued a budget calendar for the upcoming fiscal year 2026/27, requiring all thematic ministries to enter their plans and programs into the Line Ministry Budget Information System (LMBIS) by March 29. Ministry Spokesperson Tanka Prasad Pandey confirmed that budget ceilings have been provided to all ministries despite the delay in forming a new government. The National Planning Commission has set a preliminary budget ceiling of approximately USD 18.9 billion. While political instability has affected the preparation of specific policy indicators, the constitutional requirement mandates the budget’s presentation in Parliament on May 29.

Dairy Farmers Owed Rs 550 Million in Unpaid Dues

Dairy farmers in Chitwan are facing a severe financial crisis as they await Rs 550 million in unpaid dues for milk sold over the last six months. According to the District Dairy Producer Cooperative Association, Chitwan, large-scale industries and the Dairy Development Corporation (DDC) have failed to settle payments since mid-October 2025. While smaller industries have maintained regular payments, the delay from major buyers has affected approximately 40,000 farmers across 115 cooperatives. The district produces 350,000 liters of milk daily, with over 50% exported to other regions. Farmers are struggling to cover production costs and household expenses due to the prolonged payment backlog.

Bird Flu Outbreak Triggers High Alert in Jhapa and Morang

Authorities have declared a high alert in Jhapa and Morang following the confirmation of H5N1 bird flu. In Damak Municipality-10, Jhapa, a commercial farm saw the destruction of all its poultry after tests confirmed the ‘highly pathogenic’ virus. Assistant Chief District Officer Tej Prasad Prasai issued a notice restricting the movement of poultry products, eggs, and feed from infected zones. In Biratnagar, Morang, over 6,000 chickens were culled, resulting in losses exceeding Rs 10 million for farm owners each. Veterinary officials are conducting further PCR tests in neighboring areas like Mechinagar and Arjundhara as risks increase across Eastern Nepal.

TEPC Urges Exporters to Submit Promotion Programs

The Trade and Export Promotion Center (TEPC) has invited exporters to submit promotional programs for the upcoming fiscal year to address the growing trade deficit. Executive Director Sharad Bikram Rana emphasized that the new budget will prioritize helping businesses find international markets and improve the quality of Nepali exports. During a meeting with private sector representatives, TEPC highlighted the need for market research and easier access to global platforms. Committee member Nirajan Bahadur Chalaune noted that the budget’s scope for export promotion must expand to solve practical problems faced by exporters. The center aims to integrate private sector feedback into the fiscal plan to give a new direction to the country’s overall export performance and sustainable trade growth.

Fuel Crisis in West Asia Drives Demand for Electric Stoves

Geopolitical tensions in West Asia, specifically the conflict involving Iran, Israel, and the United States, have caused a surge in demand for electric stoves in Nepal due to fears of a Liquefied Petroleum Gas (LPG) shortage. With potential blockades at the Strait of Hormuz, where one-third of the world’s gas passes, Nepalese consumers are shifting toward induction and infrared cooktops. In the first eight months of the current fiscal year, 147,864 electric stoves worth Rs 304.1 million were imported. Retailers in Biratnagar report daily sales have jumped from two to ten units. While LPG imports from India face risks, consumers view domestic hydroelectricity as a more reliable and cost-effective alternative for daily cooking.

Water Industries Demand Price Hike Amidst Raw Material Shortage

The Nepal Water Industry Federation has urged the government to increase the retail price of bottled and jarred water due to a severe shortage of raw materials. President Bikram Limbu Chemjong reported that Letters of Credit (LC) for essential materials like preforms, caps, and plastic rolls have been blocked for three months due to the conflict in West Asia. The federation proposed raising the price of one-liter bottles to Rs 20 in Kathmandu and Rs 25 outside, while 20-liter jars should be priced at Rs 60 to Rs 80. Currently, the production cost of a bottle is Rs 17.45, exceeding the Rs 16 retail price. Without price adjustments and facilitated imports through the Strait of Hormuz, industries face imminent closure.

Ministry of Home Affairs Seeks Cooperation Against Money Laundering

The Ministry of Home Affairs has issued a formal request for public cooperation to curb financial investment in money laundering and organized crime. In a press release issued on Tuesday, the ministry urged individuals and organizations to report any information regarding persons or groups listed by the United Nations Security Council. Information concerning unauthorized financial activities can be submitted confidentially to District Administration Offices or provincial coordination branches. This initiative aligns with the Money Laundering Prevention Act, 2007, and its 2024 regulations. The government aims to strengthen financial integrity and transparency by identifying and penalizing those involved in illicit wealth management.

Reconstruction of 199 Houses Recommended in Roshi

The District Disaster Management Committee has officially begun recommending victims of the 2024 monsoon floods for permanent housing reconstruction. In a meeting held on Monday, the committee approved a list of 199 houses for full reconstruction and 40 for retrofitting in Roshi Rural Municipality, Kavre. Chief District Officer Gopal Kumar Adhikari stated that the list has been forwarded to the National Disaster Risk Reduction and Management Authority. Under the government’s policy, victims will receive an Rs 400,000 grant, funded 50% by the federal government, 30% by the province, and 20% by local levels. The disaster claimed 81 lives in the district.

National Planning Commission Receives 3,500 Subsidy Project Proposals

The National Planning Commission (NPC) has received approximately 3,500 project proposals from provincial and local levels for federal complementary and special grants for fiscal year 2026/27. According to Assistant Spokesperson Dr. Diwakar Luitel, the submissions include 3,358 projects from local levels and 140 from provinces. The proposals comprise 2,820 new and 678 ongoing projects. Specifically, 1,464 requests were made for special grants and 1,356 for complementary grants for new initiatives. The NPC is currently analyzing the feasibility, technical designs, and environmental reports of these proposals to ensure they align with the 2026 revised working procedures and do not duplicate existing projects.

Mustang Allocates Rs 23 Million for Tourism Projects

The Gandaki Province government has approved 27 infrastructure projects worth Rs 23 million to enhance religious and tourism sites in Mustang. According to the Integrated Service Office, Rs 15 million is dedicated to maintaining historical gumbas and trails, while Rs 8 million is allocated for province-level projects. Highlights include the construction of a Nilgiri View Park and Jomsom Tourist Park in Gharapjhong and the renovation of the Charang Gumba in Lo-Ghekar Damodarkunda. Additionally, Rs 4 million is slated for the Dhaulagiri Icefall trekking route and Rs 2 million for sculpting stone art in the Kali Gandaki River to boost local tourism.

Budget Shortages Stall 58 Drinking Water Projects in Dang

Approximately 58 federal drinking water projects in Dang remain incomplete due to a severe lack of funding. The Saudiyar Scheme No. 4 in Ghorahi-6, estimated at Rs 150 million, has completed its deep boring and overhead tank construction but lacks the Rs 5 million needed for a transformer and pipe distribution to serve 600 households. Similarly, the Chandanpur project in Gadhwa-7 faces similar delays after three years of work. Technician Gajendra Bahakari noted that some projects have been stalled for eight years. The Ministry of Urban Development has requested cost estimates to prioritize these stagnant schemes, including major projects in Laxmipur, Dharna, and Hapur Ratanpur.

Karnali Residents Face Transit Hardships Due to Suspended Air Services

High-altitude districts in Karnali Province remain disconnected from the provincial capital, Surkhet, forcing residents to travel through Nepalgunj in Lumbini Province. Despite the provincial government allocating Rs 4 million in the current fiscal year to subsidize private airlines, air services to Dolpa, Humla, Mugu, and Jumla remain nearly nonexistent from Surkhet Airport. Although a resolution was passed in the Provincial Assembly on March 21 to regularize flights, the lack of official working procedures has stalled progress. Residents currently spend significant amounts of money to reach Birendranagar for administrative and medical needs, as private companies prefer operating from Ranjha Airport due to higher fees and logistical ease.

Bagmati Province Collects Rs 24.49 Billion in Revenue

Bagmati Province has collected Rs 24.49 billion in revenue during the first eight months of fiscal year 2025/26, achieving 36.29% of its annual target. Real estate registration contributed Rs 2.56 billion, significantly below the Rs 7.70 billion annual goal. Vehicle-related taxes generated Rs 4.449 billion. Additionally, the province received Rs 5.046 billion from Value Added Tax and Rs 7.942 billion in federal equalization grants. Officials attribute the shortfall to economic liquidity issues, a slowdown in property and vehicle sales, and physical damage to revenue offices during the September 2025 protests.

Lumbini Province Spends Only 27.63% of Budget in Eight Months

Lumbini Province has recorded a slow budget expenditure of only 27.63% during the first eight months of fiscal year 2025/26. Out of the total Rs 38.81 billion budget, the government spent Rs 10.75 billion by March 14. Capital expenditure stands at 25.40%, while current expenditure reached 31.01%. The Ministry of Health achieved the highest spending at 48.63%, whereas the Ministry of Internal Affairs and Law recorded the lowest at 7.68%. Experts attribute the delay to political instability, government changes, and late contract tendering. The administration now faces the significant challenge of spending over 72% of the remaining budget in just four months.

Satti Customs Office Collects 60 Percent of Revenue Target

The Satti Customs Office in Tikapur Municipality-9 has collected 60% of its annual revenue target within the first eight months of the current fiscal year. Out of the projected Rs 158.4 million, the office collected Rs 96.2 million by March 14. Customs Chief Chakra Bahadur Soni reported that while targets were exceeded in November, December, and January, collections in July and August remained low. Soni expressed confidence in meeting the remaining 40% target by year-end but highlighted challenges such as illegal cross-border smuggling. He suggested that upgrading the office and establishing a quarantine facility could significantly boost revenue into the billions.

Revenue Leakage Charges Against WorldLink Communications Drop

The District Government Attorney’s Office in Lalitpur has decided not to proceed with the revenue leakage case against WorldLink Communications. This decision, supported by the High Government Attorney’s Office and the Office of the Attorney General, concludes that the company’s fee structure complies with the Telecommunications Regulations, 1997. Investigations revealed that the company’s 50% maintenance fee is legally permissible and exempt from telecommunication service charges. The Department of Revenue Investigation had previously alleged that the ISP failed to pay over Rs 2.54 billion in service fees between 2020/21 and 2022/23. The final ruling confirms that there is no solid evidence of tax evasion by the service provider.

Department of Commerce Fines 3 Firms for Non-Compliance

The Department of Commerce, Supplies, and Consumer Protection penalized three business firms following market inspections on Tuesday. Subha Grocery in Bungmati, Lalitpur, was fined Rs 50,000, while Pramisa Food Store in Magargaon and AJ Suppliers in Suryabinayak were each fined Rs 10,000. The penalties were imposed under the Consumer Protection Act, 2018, for various operational irregularities. Additionally, the department issued corrective directives to twelve other firms. Regular monitoring is being conducted in coordination with local representatives and consumer rights activists to ensure fair trade practices and protect consumer interests across the Kathmandu Valley.

Unseasonal Rain Destroys 15 Million Raw Bricks in Rautahat

Heavy unseasonal rainfall last Friday and Saturday has caused massive losses for brick kiln owners in Rautahat. According to Ram Binod Shah, president of the Brick Industry Entrepreneurs Association, approximately 15 million raw bricks across 50 functional kilns were destroyed. With a production cost of over Rs 3 per brick, the total financial loss is estimated at Rs 45 billion. Entrepreneurs, including Mohan Shah and Prem Shankar Yadav, have urged the government to introduce insurance policies for raw bricks to prevent the industry’s collapse. Currently, only 57 out of 160 registered kilns in the district remain operational due to recurring weather-related losses.

Two Panels Announce Candidacy for FNCCI Leadership

Rival panels have declared their candidacies for the upcoming leadership of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) scheduled for April 12. One group, led by Hem Raj Dhakal for Senior Vice President, includes Naresh Lal Shrestha, Kalpana Gaire, Umesh Dalmia, Jyotsna Shrestha, and Kamala Shrestha. A second group announced its lineup on Monday, featuring Shiv Prasad Ghimire, Dil Sundar Shrestha, Krishna Prasad Sharma, and Prabal Jung Pandey. While FNCCI President Chandra Prasad Dhakal and Vice President Anjan Shrestha have advocated for a consensus-based leadership to strengthen the private sector’s voice, both factions are currently moving forward with their respective panels for the 60th Annual General Meeting.

Upgrading of 26-Kilometer Bahrabise-Kodari Road Section Begins

The Department of Roads has commenced the upgrading of the 26-kilometer Bahrabise-Kodari section along the Araniko Highway. Following a Rs 2.37 million source assurance from the Ministry of Finance, the Charikot Road Division awarded a Rs 1.34 billion contract to MS NS Galva JV. The project aims to convert the monsoon-damaged highway into a double-lane road. Construction began on December 6, 2025, and has achieved 7% physical progress, focusing on gabion walls and structure reinforcement in landslide-prone areas. Project officials stated that if construction materials and site access remain uninterrupted, the double-lane expansion is expected to be completed within the stipulated timeframe to restore vital cross-border connectivity.

Kalanga Hydro Limited Opens IPO for Local and Migrant Workers

Kalanga Hydro Limited has launched its Initial Public Offering (IPO) starting Tuesday. The company is offering 1.4 million shares at Rs 100 each to local residents of Bajhang, Baitadi, and Darchula districts, and 350,000 shares to Nepali citizens employed abroad. The total issuance represents 35% of the Rs 1.4 billion authorized capital. Investors can apply for a minimum of 10 and a maximum of 20,000 shares. Migrant workers must apply by March 29, while the deadline for locals is April 7. Sanima Capital is managing the issue, which has been rated ‘CARE-NP BB,’ indicating moderate risk.

Gold Prices Drop While Silver Gains in Nepali Market

Gold prices in the market witnessed a decrease on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold dropped by Rs 1,600 to be traded at Rs 273,900 per tola (11.66 grams). This follows Monday’s rate of Rs 275,500. Conversely, silver prices saw an upward trend, increasing by Rs 80 to reach Rs 4,505 per tola. On Monday, silver was priced at Rs 4,425. Market analysts suggest that these fluctuations reflect current global economic trends and shifting demand in international markets, impacting local trading rates in Nepal.