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 short-term stress and ongoing structural adjustments, with financial markets, external pressures, and policy responses interacting simultaneously. The sharp decline in NEPSE alongside rising gold and silver prices signals weakening investor confidence and a shift toward safe-haven assets, while the central bank’s liquidity absorption and tightening oversight of microfinance institutions point to efforts to stabilize the financial system amid rising risks, including a nearly 10% NPL ratio.
At the same time, cost-push pressures—seen in higher airfares due to fuel price hikes and disruptions in international flights—highlight Nepal’s vulnerability to global geopolitical tensions. However, policy initiatives such as expanding margin trading, digitizing public financial systems, reforming labor migration training, and improving governance frameworks suggest attempts to modernize and formalize the economy.
Sectorally, progress in tourism recovery, infrastructure expansion, and export activity contrasts with persistent challenges like project delays, labor disputes, uneven regional development, and fiscal inefficiencies at local levels. Overall, the economy appears to be navigating a delicate balance between external shocks, domestic financial fragility, and gradual institutional reform.
NEPSE falls 74.73 points as all sectors decline
The Nepal Stock Exchange (NEPSE) dropped significantly by 74.73 points (2.62%) to close at 2,776.36 on Wednesday, wiping out the modest gains seen on Tuesday. The Sensitive Index decreased by 11.21 points to 473.63, while the Float and Sensitive Float indices slipped by 2.62% and 4.02%, respectively. A total of 30.29 million shares from 347 companies were traded, generating a turnover of Rs 12.109 billion. Only 13 companies posted gains, while 255 recorded losses. All 13 sector indices closed in negative territory, with the steepest declines seen in Others (-5.26%), Trading (-3.96%), Development Banks (-3.18%), and Finance (-3.03%), indicating widespread market weakness.
Gold and silver prices rise in domestic market
Gold and silver prices increased in the domestic market on Wednesday. The Federation of Nepal Gold and Silver Dealers’ Association reported that gold prices rose by Rs 7,400 per tola to reach Rs 297,600, up from Rs 290,200 the previous day. Similarly, silver prices increased by Rs 100 to Rs 4,945, compared to Rs 4,845 a day earlier.
NRB absorbs Rs 25 billion to control excess liquidity
Nepal Rastra Bank (NRB) carried out a deposit collection auction on Wednesday to manage surplus liquidity in the banking system. The central bank absorbed Rs 25 billion for a duration of 39 days. Banks and financial institutions participated through an online bidding system, where interest rates were determined competitively. The repayment of principal and interest is scheduled for May 10. Participants were required to bid a minimum of Rs 100 million, with increments allowed in multiples of Rs 50 million.
NEPSE lists 123 firms eligible for margin trading
The Nepal Stock Exchange (NEPSE) has published a list of 123 companies qualified for margin trading, effective from April 15. As per the Margin Trading Directive Procedures, 2026, the list includes 19 commercial banks, 11 development banks, 11 finance companies, and 17 microfinance institutions. It also covers 12 life insurance firms, 11 non-life insurers, 28 hydropower companies, six investment companies, along with firms from the hotel, manufacturing, and trading sectors.
Finance Minister Wagle vows support for ethical businesses
At a meeting with the Nepal Chamber of Commerce on Wednesday, Finance Minister Swarnim Wagle pledged that the government would create a conducive environment for economic growth. He stressed support for job creation and assured that honest entrepreneurs would not be unfairly targeted by legal complications. At the same time, he warned of strict measures against deliberate misconduct. Wagle also addressed concerns over Nepal’s transition from Least Developed Country (LDC) status, reaffirming the government’s commitment to strengthening the economy.
Domestic airfares rise following fuel price surge
The Airlines Operators Association of Nepal has increased domestic airfares with immediate effect, citing a sharp rise in aviation fuel prices linked to tensions in the Middle East. Nepal Oil Corporation has raised the price of aviation fuel by Rs 124 per liter, bringing it to Rs 251. This increase has significantly raised operational costs for airlines. As a result, ticket prices, including helicopter fares, have been adjusted across all routes starting today.
Nepal Airlines offers full refunds for Middle East flight cancellations
Nepal Airlines Corporation (NAC) announced on Wednesday that passengers affected by cancelled flights to Doha, Dubai, and Dammam will receive full refunds. Due to prevailing regional conditions, all affected travelers are eligible for complete reimbursement. The airline has instructed ticketing agencies and online platforms to facilitate the refund process and advised passengers to contact their booking offices for assistance.
Gautam Buddha International Airport plans strategic expansion
Gautam Buddha International Airport (GBIA) in Bhairahawa has introduced a new plan aimed at attracting more international carriers and maximizing operations. For the 2026 summer and winter schedules, the airport is working to increase flight frequency, particularly along the Lumbini-Gaya Buddhist route. A major feature of the plan is the “Fifth Freedom” concept, allowing foreign airlines such as Qatar Airways to use Bhairahawa as a transit hub for third-country routes. Nepal Airlines is also preparing to establish a permanent base there. Currently, Kuwait Airways operates charter services, while Jazeera Airways and others are seeking approvals for regular flights from Dammam and Kuwait City.
Foreign tourist arrivals reach 120,516 in March
According to the Nepal Tourism Board (NTB), Nepal received 120,516 foreign tourists in March 2026. Visitors from SAARC countries accounted for 42,668, with India contributing the highest number at 25,728. Other notable arrivals included 10,759 from Sri Lanka and 11,220 from China. Despite the impact of regional conflicts on Western markets, Asian tourists made up 27.7% of total arrivals. In comparison, March 2025 recorded 121,687 visitors.
Over 11,000 cooperatives enter regulatory registration process
The National Cooperative Regulatory Authority reported that 11,668 cooperatives have initiated the registration process as of Tuesday, with 1,836 already receiving official licenses. Under the Cooperative Act Amendment Ordinance, 2025, organizations where savings and credit transactions exceed 30% must register, regardless of their original purpose. So far, 3,989 cooperatives have completed digital profiles, while 5,039 have paid fees and received one-time passwords (OTPs). Those failing to register risk having their bank accounts frozen and being blacklisted.
Govt to shift foreign employment training to free online system
The Ministry of Labor, Employment, and Social Security is preparing to move mandatory pre-departure orientation training (PDOT) for migrant workers to a free digital platform. As part of its 100-day plan, the ministry intends to replace the current network of 153 private training providers with an online program consisting of 15–16 hours of video content. Unlike the current fee of Rs 2,100, the new system will be free of cost. While the government says this will improve transparency and reduce financial burdens, private operators have raised concerns about their investments and the future of around 1,200 employees.
Energy ministry establishes governance unit
A new “Governance Unit” has been set up within the Ministry of Energy, Water Resources, and Irrigation to improve transparency and efficiency. Formed under the direction of Minister Biraj Bhakta Shrestha, the unit is led by a Joint Secretary from the Administration Division. Its responsibilities include monitoring employee performance, evaluating outcomes, and ensuring proper use of government resources. It will also oversee the implementation of the Governance (Management and Operation) Act, 2008, ensuring timely and lawful service delivery across departments.
India limits electricity supply to Nepal to 16 hours daily
The Indian Energy Exchange (IEX) has renewed Nepal’s electricity import approval but reduced supply to 16 hours per day starting April 16. India’s Central Electricity Authority cited high domestic demand during peak hours as the reason for the restriction, which will remain in place for around 75 days. From April 16 to 30, imports will be allowed between 2:00 AM and 6:00 PM, while in May and June the window shifts to 4:00 AM to 8:00 PM. Full 24-hour supply is expected to resume in July. The Nepal Electricity Authority (NEA) stated that domestic generation, including output from Upper Tamakoshi and the Kulekhani reservoir, will prevent power shortages during evening hours.
Lumbini districts report poverty rates below national average
Recent data from the National Statistics Office shows that five out of 12 districts in Lumbini Province have poverty rates below the national average of 20.27%. These include Gulmi, Arghakhanchi, Palpa, Nawalparasi Purba, and Rupandehi. In contrast, districts such as Rukum Purba, Rolpa, Pyuthan, Kapilvastu, Dang, Banke, and Bardia exceed the average. Within Dang district, Banglachuli Rural Municipality recorded the highest poverty rate at 41.58%, while Dangisharan had the lowest at 14.69%. The poverty threshold was defined as an annual per capita expenditure below Rs 72,908.
Vehicle imports through Birgunj rise to Rs 23.57 billion
Vehicle and spare parts imports through the Birgunj border reached Rs 23.57 billion in the first seven months of the current fiscal year, marking an increase of Rs 6.42 billion compared to the same period last year. The Birgunj Customs Office reported revenue collection of Rs 16.73 billion from these imports. This included 609 fuel-powered jeeps, cars, and vans valued at Rs 1.161 billion.
Sudurpashchim province revises grant procedures after delays
The Sudurpashchim Province government amended its procedures for special and equalization grants on March 30 after missing the initial deadline for project proposals from local levels. The Ministry of Economic Affairs and Law updated the rules, allowing the Provincial Policy and Planning Commission to set new deadlines for the 2026/27 fiscal year. The delay comes amid low capital spending, with only 10% utilized in the first eight months of the current fiscal year. The revision also permits expert involvement in project selection and requires local budgets to be integrated into the “Sutra” system.
Herbal exports through Nepalgunj reach Rs 461.3 million
Herbal products exported via the Nepalgunj customs point amounted to Rs 461.3 million in the first eight months of fiscal year 2025/26. A total of 1,420,290 kilograms of herbs were shipped, with India accounting for 85% of the market share. Pine knots were exported for the first time, totaling 39,649 metric tons worth Rs 1.9 million. Key export items included winter cherry, cinnamon, amla, and soapnut. However, the Herbal Entrepreneurs Association of Banke stated that a 100% tax on pine knots has restricted the growth potential of this product.
Economic census planned for Jumla and Mustang
The Economic Census Office has scheduled a detailed economic census in Jumla and Mustang from April 15 to June 21. In Jumla, 17 enumerators and three supervisors will gather data from 1,569 commercial establishments and 263 industrial units. In Mustang, five enumerators and one supervisor will be deployed across five local units to update figures from the 2018 census, which recorded 775 registered businesses. The exercise aims to capture actual economic activities from Ghasa to the Korala border.
NRB penalizes 14 microfinance institutions for non-compliance
Nepal Rastra Bank (NRB) has taken regulatory action against 14 microfinance institutions for failing to meet capital requirements and offering savings interest rates below the mandated threshold. According to the second-quarter report, eight institutions did not maintain the minimum 4% primary capital or 8% total capital relative to risk-weighted assets. Sanjivani Microfinance, currently under resolution, fell below the required 8% level. Other institutions penalized for insufficient capital include NADEP, Abhiyan, Forward, Samudayik, Unique, and Matribhumi. Additionally, Kalika, NADEP, and Aatmanirbhar were flagged for offering deposit interest rates below half of their maximum lending rates.
Concerns raised over shortfall in revenue sharing for local govts
During an interaction organized by Shivapuri Rural Municipality in Nuwakot, officials voiced concerns that local governments are receiving less than their constitutionally guaranteed share of funds. National Natural Resources and Fiscal Commission member Bipin Raj Niraula pointed out that although Article 60 and the Intergovernmental Fiscal Management Act, 2017 define revenue-sharing provisions, legal inconsistencies have hindered fair distribution. The municipality is also dealing with a liability of Rs 50.6 million from the previous fiscal year, which continues to affect its development plans.
Hetauda cement industry resumes clinker production
Hetauda Cement Industry restarted clinker production on Wednesday after fixing issues in its coal mill furnace. The plant had resumed operations on March 28 after a seven-month shutdown but halted production again the following day due to technical problems. Although its original capacity was 18,000 bags per day, outdated equipment currently limits output to around 11,000 bags daily. Established in 1976/77 with an investment of Rs 1.5 billion, the industry now holds a coal reserve sufficient for two months.
Work halted at Arun III hydropower project over unpaid wages
Around 1,500 workers and small contractors at the Arun III Hydropower Project in Sankhuwasabha halted work on Wednesday, citing unpaid wages and allowances for the past six months. The workforce, employed under the Indian contractor Patel Engineering, has raised concerns over delayed payments. The District Administration Office is working with Sutlej Jal Vidyut Nigam (SJVN) to resolve the issue. The 900-megawatt project, estimated to cost Rs 120 billion, is targeted for completion within five years.
Compensation distribution reaches Rs 180 million for Kimathanka Arun project
The Kimathanka Arun Hydroelectric Project has distributed over Rs 180 million in compensation to 26 landowners in Bhotkhola Rural Municipality-2 since March 23. Managed by Vidhyut Utpadan Company, the 454-megawatt project estimates total compensation of Rs 450 million for 35.611 hectares of land. Land valuations reached up to Rs 690,000 per 508.73 square meters during a meeting held on December 23, 2025. The total project cost is projected at Rs 93.8 billion, with 51% government investment and 49% public participation.
NOC to implement fully digital transactions from April
Nepal Oil Corporation (NOC) will transition all financial transactions to digital platforms starting April 14. This initiative is part of the government’s 100-point reform agenda aimed at improving transparency and accountability in public services. Under Executive Director Dr. Chandika Bhatta, the corporation will use its Enterprise Resource Planning (ERP) system to handle all incoming and outgoing payments, including those to suppliers, contractors, and transporters. The move will eliminate paper-based checks and ensure direct bank transfers. Although the ERP system was introduced six years ago, it was previously limited to salaries and internal accounting.
Microfinance sector records 9.99 percent non-performing loans
According to data from Nepal Rastra Bank’s supervisory system, the non-performing loan (NPL) ratio of microfinance institutions stood at 9.99% as of January 14. To manage risks, these institutions have set aside Rs 33.4 billion in loan loss provisions, covering 66.38% of total bad loans. While some institutions such as Abhiyan, Nerude Mirmire, and Sanjivani (Super) faced criticism for not uploading data, most complied with sector lending requirements. Notably, all microfinance firms met the rule of allocating one-third of their credit to agriculture, while collateral-based small business loans made up 14.82% of total lending.
Dhankuta deploys road menders to maintain key routes
The Infrastructure Development Office in Dhankuta has assigned dedicated road menders to oversee maintenance along three important road sections. These include the 10-kilometer Hile–Chhintang road, the 21-kilometer Bishware Hatia–Karmitar–Chhathar road, and the 10-kilometer Guthitar–Baghkhore–Chhiring road. Two workers have been deployed on each section under an initial three-month contract. Their duties include clearing drainage, removing small landslides, preventing encroachment, and ensuring smooth traffic flow, particularly during the monsoon season.
Electric vehicles in Lumbini begin operations after five-year delay
Following directives from Prime Minister Balendra Shah’s office, the Lumbini Development Trust has started operating two electric buses from Wednesday. These vehicles are part of a 19-unit fleet, including vans, provided by the Asian Development Bank under a Rs 130 million clean energy grant five years ago. One bus operates between Lumbini and Belahiya via Bhairahawa Airport, while the other runs between Lumbini and Kudan via Tilaurakot. Despite investments in charging stations and customs payments, the vehicles suffered damage due to prolonged outdoor storage. Each bus is valued at Rs 20 million, while each van costs Rs 4 million.
Bird flu spreads in Sunsari, over 19,000 poultry culled
Bird flu outbreaks have been confirmed in several areas of Sunsari district, including Inaruwa and Itahari, affecting both commercial and local poultry. Verified cases in farms at Inaruwa-2 and Itahari-16 have led to intensified containment measures. Authorities have increased surveillance and implemented strict controls in affected and nearby areas. So far, 19,365 birds from 14 suspected farms have been culled to prevent further spread. Farmers have been advised to report symptoms quickly and limit contact among poultry.
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