KATHMANDU: Nepal News presents all major economic and financial developments in one place. Here is today’s economic update, market movements, and industry news at a glance:

PM Karki Urges Shift from Remittance Dependence, Vows Rapid Reforms to Boost Production and Jobs:
Prime Minister Sushila Karki said Nepal must move beyond relying solely on remittances and focus on increasing domestic production. Speaking at the National Economic Debate 2.0, she said the government is speeding up capital expenditure to inject liquidity and create jobs. She highlighted coordinated steps with Nepal Rastra Bank to stabilize the financial sector and remove policy bottlenecks, while prioritizing hydropower, tourism, and agriculture.

Karki acknowledged the crisis faced during the Gen-Z movement and urged entrepreneurs, farmers, and youth to move forward with confidence. Stressing good governance, she said corruption, capital flight, and structural weaknesses have limited economic gains despite strong fundamentals. She pledged stronger rule of law, protection of national assets, and a supportive environment for businesses. As the March 4 election approaches, she said the government is committed to strengthening democracy and restoring hope that Nepalis can build a future at home.

Finance Minister Khanal Begins Rapid Collaboration with Private Sector for Recovery and Reform:
Finance Minister Rameshwar Khanal said the government has begun immediate collaboration with the private sector, recognizing it as a partner in national development and job creation. Speaking at FNCCI’s Economic Debate 2.0, he said work—from business revival to revenue improvement—is moving at high speed. Dialogues with private-sector leaders began the day after the Cabinet was formed, and a “Business Recovery Plan” was completed within a week. He said the ministry has introduced a system of prompt hearings, discussions, decisions, and implementation. Stressing good governance to curb youth outmigration, he announced measures to cut administrative costs and reduce audit burdens. Khanal urged peaceful protests, warned against misinformation, and emphasized reducing human contact to curb corruption and protect national assets.

Minister Sinha Pledges to Remove Legal Hurdles, Fast-Track Stalled Industrial Projects:
Industry, Commerce, and Supplies Minister Anil Kumar Sinha has committed to prioritizing the removal of legal obstacles hindering industrial growth. Speaking at the National Economic Debate in Kathmandu, he directed officials to fast-track long-pending industrial files and stressed the importance of inter-ministerial coordination to ensure smooth progress. Sinha highlighted that stalled projects act as a drag on the economy, limiting its momentum, and emphasized that the government should support rather than control economic activity. He urged identifying legal barriers preventing industrial progress and addressing them systematically to make the economy more dynamic, ensuring that decision-making processes are efficient and growth-oriented.

Electrical Short Disrupts Flights at Tribhuvan International Airport:
On Saturday evening around 5:25 PM, a sudden electrical short on the runway at Tribhuvan International Airport disrupted all flight operations. Airport sources said heavy rainfall likely caused water to seep into the runway, triggering the short. Electrical department staff are working to locate and fix the fault, which preliminary reports indicate occurred in the edge lights along the runway.
Several international flights, including Fly Dubai from Dubai, Qatar Airways from Doha, and Korean Air from Seoul, were facing landing problems. Due to extended holding times, Korean Air diverted to New Delhi, and the Domastic flight returned to other airports. The 3,350-meter runway remains dark, with repair work ongoing, affecting airlines such as Qatar, Nepal Airlines, Fly Dubai, SpiceJet, Air Arabia, and Batik Air.

Governor Paudel Calls for New Plans, Higher Spending to Revive Demand and Economic Activity:
Nepal Rastra Bank Governor Bishwo Paudel said new plans are needed to accelerate economic activity and boost consumer demand. Speaking at FNCCI’s Nepal Economic Debate 2.0, he stressed the importance of keeping the morale of businesses and citizens high. Paudel noted that technological change is reshaping business models and consumer behavior, urging even traditional sectors to adapt. Public institutions, he said, must increase spending because economic momentum cannot rise when activities slow.
He warned that blacklisting cases are rising and nearly 80 percent of bounced cheques are exerting pressure on businesses. Paudel called for balanced cooperation between the private sector, public bodies, and technology, encouraging entrepreneurs to plan ahead, stay confident, and collaborate to strengthen financial flows.

NEPSE Slips 4.26 Points as Profit-Taking Halts Previous Week’s Rally:
The NEPSE index dipped 4.26 points last week, closing at 2,596.12 as investors booked profits after a strong 3.86% surge the previous week. The market fluctuated between 2,650.61 and 2,576.83 points, showing volatility of 73.78 points. After a strong 30.75-point rise on Sunday, the index fell for two days, rebounded mid-week, and slipped again Thursday. Finance led gainers with a 6.17% rise, while hydropower lost 1.39%. Himalayan Bank (Promoter) posted the highest turnover at Rs 1.66 billion. Weekly turnover rose to Rs 30.50 billion. Market capitalization fell by Rs 5.78 billion to Rs 4.341 trillion, reversing last week’s Rs 162-billion gain.

Commercial Banks’ Q1 Profits Drop 18%, Citizens Bank Posts Rs 2.04 Billion Loss:
Net profits of Nepal’s commercial banks fell sharply in the first quarter of FY 2025/26, with unaudited results from 20 banks showing an 18 percent year-on-year decline. Combined profits dropped to Rs 13.14 billion from last year’s Rs 16.12 billion. Fifteen banks reported lower earnings, and Citizens Bank International posted a loss of Rs 2.04 billion. Global IME Bank topped the list with Rs 1.85 billion in profit, up 22.92 percent, followed by Nabil Bank at Rs 1.75 billion. Only five banks—Global IME, Everest, Rastriya Banijya, Sanima and NIC Asia—recorded growth, with Rastriya Banijya Bank’s profit soaring 295.72 percent.

Nepal’s Telecom Market Shrinks as ISPs Gain, Telecom Companies Face Financial Stress:
Nepal’s overall telecom market has stagnated around Rs 90 billion over the past five years, down from Rs 92 billion in FY 2076/77, according to the Nepal Telecommunications Authority. Traditional telecom companies, burdened with high regulatory fees and infrastructure costs, lost 16% of market share, while internet service providers (ISPs) grew 93%, reaching Rs 21.94 billion in FY 2080/81—dominated by WorldLink Communications. Public and private telecoms now face financial crises, unable to invest adequately in services or 5G. Nepal Telecom’s revenues have fallen due to increased internet usage, free Wi-Fi from ISPs, and reduced interest income, forcing reliance on bank interest from reserves for profitability.

Nepal’s Capital Market Paralyzed for Over a Month Following Finance Ministry Directive: arket regulator, the Securities Board (SEBON), has been non-functional for over six weeks following a finance ministry decision to abolish employee welfare and security funds. The directive, issued by Finance Minister Rameshwar Khanal shortly after taking office, triggered protests from SEBON staff, who viewed it as a breach of their statutory benefits and the board’s autonomy. The shutdown has halted approvals for IPOs, rights issues, and bonds, affecting over a dozen companies seeking 15–20 billion NPR in funding. Experts warn the freeze hampers investment flow, slows economic growth, and threatens job creation, raising concerns about regulatory independence.

Sikta Irrigation Project Marks 50% Completion After 20 Years, Brings Transformative Change to Banke Farmers:
The national pride Sikta Irrigation Project in Banke has reached 50% completion, two decades after construction began. Project Director Raju Acharya said expanded scope and rising costs delayed progress, but work on the remaining canals is now moving quickly. The western main canal’s 45 km and 37 km of the eastern canal are finished, while major structures and branch networks are under construction. The long-stalled Duduwa Irrigation System has also resumed and will irrigate 16,000 hectares once complete. With water already flowing in several canals, farmers now grow up to three crops a year. A new Rs 5 billion programme will further expand branch canals and rebuild ageing structures.

Chinese Airlines Continue to Defy Nepal VAT Law, Keeping Collected Taxes in Own Accounts:
Chinese airlines operating in Nepal, including Air China, China Southern, China Eastern, and Sichuan Airlines, have reportedly ignored Nepal’s VAT registration law for over two years. Since FY 2080/81, all domestic and foreign airlines must register for VAT and remit it to the government, but these carriers collect VAT from tickets while keeping the funds in their own accounts. Attempts by Nepal’s Internal Revenue Department and Finance Ministry to enforce compliance have been blocked with support from the Chinese embassy. Other airlines have begun protesting the unfair advantage. Last year, the airlines finally paid collected VAT, but this year two billion NPR in VAT remains with them, earning interest instead of reaching Nepal’s treasury.

DDC Yet to Clear Rs 500 Million in Farmer Dues as Flush Milk Season Begins:
The Dairy Development Corporation (DDC) still owes about Rs 500 million to milk-producing farmers as the flush season begins. Agriculture Ministry official Mahananda Joshi said DDC has recently paid Rs 300 million and plans to clear 80% of remaining dues within three to four months. Farmers have faced years of delayed payments from both private dairies and DDC—last year private firms owed Rs 2 billion and DDC Rs 900 million. Oversupply, falling winter demand, and stockpiles of skimmed milk powder and butter have worsened payment delays. Joshi said non-payment risks are lower this year. Entrepreneurs say better technology and payment systems are essential for long-term stability.

Commercial Banks Collect Over Rs. 50 Billion in Interest in Just Three Months:
Twenty commercial banks in Nepal earned over NPR 50.07 billion in interest from borrowers during the first quarter of FY 2082/83, marking a 5.25% increase from the same period last year. While six banks saw a decline in interest income, 14 recorded growth, led by Global IME Bank with NPR 4.13 billion. Other top earners include Nabil Bank (NPR 3.90B), Nepal Investment Mega Bank (NPR 3.24B), and Rastriya Banijya Bank (NPR 2.92B). Smaller contributors include Machhapuchchhre Bank (NPR 1.46B) and Nepal SBI Bank (NPR 1.32B), reflecting the sector’s overall robust lending performance.

Study Committee Recommends Cargo Operations to Boost Business at Gautam Buddha International Airport:
Despite opening with multi-billion investment, Gautam Buddha International Airport has yet to see regular international commercial flights. A government-formed high-level study committee, chaired by Minister Anil Kumar Sinha, suggests attracting cargo operations to maximize the airport’s potential. The report notes that Nepalese exporters currently rely on Tribhuvan International Airport, where cargo bookings face delays. By offering lease-based facilities and streamlined licensing at Gautam Buddha International Airport, private operators could run cargo flights efficiently. With strategic location near the Lumbini region and existing RNP-AR navigation systems, the airport could serve as a key cargo hub, supporting exports and international trade growth.

Government Invites Startup Loan Applications: Entrepreneurs Can Apply Until Mangsir 11:
The Industrial Enterprise Development Institute has opened applications for the FY 2082/83 startup loan program, allowing aspiring entrepreneurs to submit project proposals by Mangsir 11, 17 days from the announcement. Under the Startup Enterprise Loan Operating Procedure, 2082 (first amendment), eligible startups can apply for loans ranging from NPR 5 million to NPR 20 million. This year, the government plans to fund 400 entrepreneurs, down from 600 last year. Eligible applicants include private firms, partnerships, companies, or cooperatives with innovative, technology-driven business ideas, registered within the last 10 years, and with annual turnover under NPR 15 crore.

CIAA Launches Fresh Investigation into Pokhara International Airport Construction, Targeting Initial Decision-Makers:
The Commission for the Investigation of Abuse of Authority (CIAA) has reopened a probe into Pokhara International Airport’s construction and cost escalation involving the Chinese company China CAMC Engineering Cooperation. The investigation now focuses on all initial decision-makers, including former Directors Ratish Chandra Lal Suman, Suman Kumar Shrestha, and Triratna Manandhar, as well as political leaders and board members previously excluded from accountability. The CIAA is reviewing key contracts, cost revision approvals, and tender evaluations dating from 2014, scrutinizing both airport authority officials and ministers involved. Earlier parliamentary reports had omitted many responsible individuals, prompting the anti-corruption body to begin comprehensive new investigations.

Finance Ministry Allows Import of 12,000 Vehicles Violating Nepal’s Euro-6 Pollution:
Despite officially implementing the Euro-6 emission standard under the “Nepal Vehicle Pollution Standard, 2082,” the government, through Finance Minister Rameshwar Khanal, has allowed around 12,000 vehicles that do not meet the standard to enter Nepal. Businesses argued relief was necessary as letters of credit had already been opened, but environmentalists warn the decision endangers public health and contributes to worsening air pollution in cities like Kathmandu. Critics say this move effectively turns Nepal into a dumping ground for older, banned vehicles from India, undermining national emission targets and risking respiratory diseases, cancer, and long-term environmental degradation.

Chandragiri Cable Car Reopens After Two Months, Fully Repaired Following Gen Z Protests:
Chandragiri Cable Car resumed operations on Saturday after nearly two months of closure due to damage from the Gen Z protests on Bhadra 23-24. The vandalism had affected the main operations unit, gondola parking, administrative offices, ticket counters, and restaurant areas. Chandragiri Hills, with technical support from Austrian manufacturer Doppelmayr, completed repairs, safety checks, and inspections over 40–60 days. The resort reopened alongside the cable car, attracting large crowds on its first day. Officials and tourists expressed excitement at returning to normal operations, while the company emphasized that visitors could now safely enjoy panoramic views and temple visits in a fully restored environment.

Gulmi’s Bichitra Cave Holds Stunning Natural Art but Lacks Research and Tourism Development:
A 15-minute drive from Tamghas along the Tamghas–Simaltari section of the Madan Bhandari Highway leads to Bichitra Cave, a naturally adorned attraction in Dhurkot Rural Municipality-5. Discovered over 35 years ago, the cave features more than two dozen natural artworks, including formations named Ramjanaki Ashram, Shivalaya, and Swarjane Bato. Locals believe it may be Nepal’s largest cave, but research and investment remain minimal. A natural assembly hall inside can host 200 people, while structures resembling Shivalinga, Ram, Krishna, snakes, and Jatayu draw visitors. Though past efforts improved access, conservation and promotion remain limited despite involvement from all three government tiers.

FNCCI President Urges Strong Government Backing to Restore Private-Sector Confidence:
FNCCI President Chandra Prasad Dhakal has called on the government to take special measures to restore the morale of Nepal’s private sector, which contributes 81 percent to the national economy. Speaking at the National Macroeconomic Debate 2.0, he urged the government to formally recognize this contribution through a proposal of public importance. Dhakal said the sector is still recovering from arson during the Gen-Z movement, which caused Rs 48 billion in physical damage and Rs 88 billion in losses. He demanded strict action against those responsible. He also highlighted the Nepal Development Public Limited (NDP) initiative to prove that large projects can be built with domestic capital.

Urlabari Farmers Adopt Modern Paddy Harvester With 50% Koshi Province Subsidy:
Farmers in Urlabari Municipality-9, Morang, have purchased a modern paddy harvester with a 50% subsidy from the Koshi Province government. Ward Chair Nar Bahadur Moktan said the harvester, tractor, baler, and trolley cost Rs 6.276 million. He said technology is essential as labour shortages worsen, with many agricultural workers migrating to India. Farmer Dikendra Basnet said the new harvester has eased harvesting and reduced costs, though machines for bundling straw are still needed. According to agriculture chief Ambika Prasad Luitel, the ward invested Rs 1 million and farmers added Rs 746,000. Farmers will pay Rs 6,000 per hour—cheaper than commercial operators’ Rs 7,500 rate.