KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mix of cautious recovery, underlying vulnerabilities, and ongoing structural adjustments. The rebound in NEPSE despite declining turnover suggests improved investor sentiment but weak market depth, while rising gold and silver prices indicate a shift toward safe-haven assets amid uncertainty.
Currency depreciation, driven by the weakening Indian rupee, is likely to intensify inflationary pressures through higher import costs, even as remittances gain marginal value. At the policy level, measures such as decentralizing migrant health services, tightening regulatory oversight, and introducing a results-based budget framework signal efforts to improve governance and service delivery.
However, persistent challenges—such as low capital expenditure in provinces, slow tourism recovery, infrastructure gaps, and financial inefficiencies like unclaimed bonds—highlight structural constraints. Meanwhile, expansion in aviation, agriculture support, and private-sector growth ambitions point to opportunities, but their success will depend on effective implementation and macroeconomic stability.
NEPSE recovers despite decline in trading volume
The Nepal Stock Exchange (NEPSE) rebounded on Tuesday, gaining 19.70 points to close at 2,851.09 after two straight days of losses. The Sensitive Index rose by 3.26 points to 484.84, while the Float Index increased by 0.64 percent and the Sensitive Float Index climbed 1.02 percent. However, total turnover fell to Rs 11.112 billion from Rs 12.966 billion recorded on Monday. Out of 339 traded companies, share prices of 195 advanced, 63 declined, and nine remained unchanged. Most sector indices posted gains, including commercial banks, development banks, finance, hotels and tourism, and manufacturing, while mutual funds and the “others” category registered slight losses.
Gold and silver prices surge in domestic market
Prices of gold and silver rose sharply in the local market on Tuesday. Gold climbed by Rs 6,700 per tola to reach Rs 290,200, while silver increased by Rs 145 to Rs 4,845 per tola. The rise reflects a broader global trend, with international prices of precious metals also moving upward amid market uncertainty.
NRB urges investors to claim matured bond payments
Nepal Rastra Bank (NRB) has called on investors to collect pending principal and interest payments from matured government savings bonds. The Monetary Management Department noted that several holders of Citizen Savings Bonds and Foreign Employment Savings Bonds have yet to claim amounts that matured by mid-May 2024. The central bank advised against leaving funds unclaimed for extended periods and urged investors or their legal representatives to contact the department with required documents. These bonds are considered key instruments for mobilizing domestic resources for development projects.
Govt allows migrant health checkups at more hospitals
The Ministry of Labor, Employment, and Social Security has decided to allow migrant workers to undergo mandatory health tests at any government-recognized hospital. The move also opens enlistment for additional health institutions willing to provide these services. Currently, 194 institutions are authorized for such screenings. The decision is expected to decentralize and ease the process for outgoing workers.
NPC introduces checklist for upcoming budget
The National Planning Commission (NPC) has issued a new checklist to guide preparation of the fiscal year 2026/27 budget, aiming for more realistic and result-oriented spending. Ministries have been instructed to prioritize projects ready for immediate execution and supported by clear cost-benefit analysis. They must also submit progress reports and align plans with the 16th Five-Year Plan.
Weakening Indian rupee drags down Nepali currency
The Indian rupee dropped to a 14-year low against the US dollar, trading at 95.22, driven by rising oil prices and foreign capital outflows. As the Nepali rupee is pegged to the Indian currency, it also depreciated, reaching a record low of Rs 152.04 per dollar on Tuesday. The Nepali currency has weakened by 5.56 percent since January, raising concerns about higher costs for imported fuel and essential goods, which could fuel inflation. However, the depreciation may slightly increase the local value of remittances.
Nepal Airlines expands Kathmandu-Delhi flight frequency
Nepal Airlines Corporation (NAC) has increased flights on the Kathmandu-Delhi route to 10 per week starting March 31. The airline added three additional weekly flights to meet rising passenger demand. Previously operating one daily flight, NAC now aims to strengthen its international connectivity and offer more flexible travel options between the two capitals.
Foreign employment orientation fee remains unchanged
The Department of Foreign Employment (DoFE) has clarified that the fee for mandatory pre-departure orientation training remains Rs 700. The statement follows rumors of a price hike. The Department warned that any training provider charging above the set limit would face license cancellation and urged workers to report overcharging or irregularities.
Health insurance board warns against discrimination
The Health Insurance Board has cautioned hospitals against mistreating insured patients or denying services. Reports suggest some facilities require advance appointments for insured individuals or fail to provide prescribed medicines. The board said such practices violate the Health Insurance Act, 2017, and warned that strict legal action will be taken against violators.
Authorities crack down on illegal betting advertisements
The Advertising Board has directed stakeholders to immediately stop promoting unauthorized betting apps, websites, and related platforms. The move follows a recent government decision to ban such digital services. Officials warned that promoting gambling-related content is illegal and urged the public to report violations.
Prime Minister pledges support for health sciences university
Prime Minister Balen Shah has assured immediate progress in developing the Shahid Dashrath Chand University of Health Sciences. During a meeting with lawmakers from Sudurpashchim Province, he pledged to release necessary funds and prioritize key projects, including the resumption of Gokuleshwar Airport. Lawmakers also raised concerns over border management, water shortages, and infrastructure development in the region.
Chinese tourist arrivals yet to fully recover
Tourist arrivals from China to Nepal have not returned to pre-pandemic levels despite promotional efforts under the “Nepal Visit Year 2025” campaign. While Nepal welcomed over 169,000 Chinese visitors in 2019, the number dropped significantly during the pandemic and reached only 95,480 in 2025. Ongoing global conflicts and high travel costs have further affected recovery.
Karnali Chief Minister warns over poor budget spending
Karnali Chief Minister Yam Lal Kandel has warned ministers and officials to resign if they fail to improve budget execution. Data shows only 19.64 percent of the provincial budget had been spent by mid-February, with capital expenditure particularly low at 12.97 percent. Kandel criticized delays and inefficiencies, calling for immediate improvements.
CNI proposes plan to grow economy to $100 billion
The Confederation of Nepalese Industries (CNI) has proposed a roadmap to expand Nepal’s economy to $100 billion within a decade. During a meeting with Finance Minister Dr. Swarnim Wagle, CNI President Birendra Raj Pandey emphasized job creation and import substitution through industrial growth. The minister pledged further economic reforms, removal of outdated laws, and a more investment-friendly environment.
Power supply resumes in Rasuwa after lightning disruption
Electricity service in several parts of Rasuwa was restored on Tuesday after a three-day outage caused by lightning damage. The Nepal Electricity Authority (NEA) replaced four transformers in Uttargaya, Gosaikunda, and Aama Chhodingmo rural municipalities. Despite being a key hydropower-producing district, around 10,600 consumers in Rasuwa continue to face frequent supply interruptions. Technical teams were mobilized promptly to repair lines in Dhunche and nearby areas, where the NEA generates roughly Rs 15 million in monthly revenue.
Pokhara allocates Rs 5.5 million to boost agriculture
Pokhara Metropolitan City has introduced a 50 percent cost-sharing grant program across all 33 wards to promote agricultural production. A total of Rs 5.5 million has been allocated, with Rs 100,000 provided to each of 11 urban wards and Rs 200,000 to each of 22 rural wards. Officials say the initiative will support farmers with equipment and inputs while encouraging sustainable farming practices.
KMC to pilot land administration services in 10 wards
Kathmandu Metropolitan City (KMC) is launching a pilot program to deliver land administration services in 10 wards. Acting Mayor Sunita Dangol said the initiative will cover wards 3, 4, 6, 10, 14, 15, 16, 23, 26, and 31. Under the program, ward offices will handle land ownership records, revenue collection, and biometric verification. In coordination with land revenue offices in Chabahil, Dillibazar, and Kalanki, the move aims to spare residents from traveling to central offices for services such as ownership transfers and mortgage clearance.
Suspension bridge in Gulmi completed ahead of deadline
A 146-meter suspension bridge linking Chhaldi Tari and Palukha in Isma Rural Municipality-2 of Gulmi has been completed five months earlier than scheduled. Constructed at a cost of Rs 17.1 million, the bridge replaces a risky river crossing, particularly during monsoon season. It has reduced travel time from 30 minutes to just five minutes, improving access to markets, schools, and healthcare services.
FCAN begins leadership election process
The Federation of Contractors’ Associations of Nepal (FCAN) has begun its 26th General Assembly and 13th Convention in Kathmandu. The leadership race features two main panels led by Senior Vice President Ang Dorjee (AD) Lama and Nicholas Pandey. While Lama’s group is advocating amendments to the Public Procurement Act, Pandey’s panel is focusing on addressing structural issues in the construction sector. Voting is scheduled for April 2.
Spring rice output likely to rise in Saptari
Rice production in Saptari district is expected to increase this season due to expanded cultivation and improved irrigation facilities. The cultivated area has grown to 3,100 hectares from 2,800 hectares last year, with production projected at 14,787 metric tons. Enhanced access to irrigation systems, including tube wells, has encouraged farmers to expand spring paddy farming.
Apollo Hydropower to open IPO on April 9
Apollo Hydropower Limited will issue shares to the general public starting April 9. The company plans to offer 780,200 shares at Rs 100 per unit. This follows an earlier phase targeting local residents and migrant workers. Applications will be open until April 13, with a minimum purchase of 10 shares and a maximum of 94,000 shares. The company has been rated ‘CARE-NP BB-’, indicating moderate investment risk.
Bird flu outbreak confirmed in Bharatpur
Authorities have confirmed an outbreak of H5N1 bird flu in Bharatpur Metropolitan City-4, Chitwan. Around 18,000 commercial chickens and 900 local birds have been culled to contain the spread. This is the first reported case in the district since 2022. Officials have urged poultry farmers to adopt strict biosecurity measures and limit movement of poultry-related transport.
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