KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments reflect a period of heightened economic volatility and geopolitical uncertainty affecting Nepal both directly and indirectly. Surging global oil prices amid escalating Middle East tensions have pushed gold to record highs, signaling investor flight to safe-haven assets, while the regional conflict has disrupted international flights, stranded thousands of passengers, and prompted Nepal to suspend labor permits to Gulf countries where over 1.7 million Nepalis work.
Domestically, authorities are attempting to maintain financial and logistical stability during the election period, with Nepal Rastra Bank directing banks to operate through holidays and Nepal Oil Corporation keeping fuel depots open to prevent shortages. At the same time, structural economic concerns persist, including a widening trade deficit highlighted by Nepalgunj’s import-heavy customs data, delayed industrial recovery such as the stalled Ilam tea factory reconstruction, and rising election-driven airfares.
Meanwhile, policy initiatives—such as consultations for the upcoming revenue policy, infrastructure allocation in Karnali, telecom service expansion, and expectations of strong mango production in Madhesh—indicate ongoing efforts to stimulate growth and administrative continuity despite external shocks.
Gold price rises by Rs 5,600 per tola
Gold prices increased by Rs 5,600 per tola on Monday, reaching Rs 326,100, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver prices also rose to Rs 6,020 per tola. Over the past two days, gold has gained Rs 11,200 per tola, reflecting continued market volatility and strong investor demand.
NRB directs banks to remain open during holidays
Nepal Rastra Bank has directed all banks and financial institutions to continue operations during the upcoming public holidays, including Holi and the House of Representatives election day on Thursday. Commercial banks handling government transactions have been instructed to ensure revenue collection and payment services. Likewise, banks managing election campaign accounts must provide uninterrupted facilities for deposits and payments through cash, cheques, or other instruments. The move is aimed at preventing disruptions to essential financial and election-related activities during the three-day holiday period.
Global oil prices jump as Middle East tensions escalate
International oil prices climbed sharply amid intensifying military conflict involving the United States, Israel, and Iran. Brent crude rose by 9 percent to USD 79.42 per barrel, while US crude increased by 8.6 percent to USD 72.61. Gold prices also advanced 1.4 percent to USD 5,350 per ounce as investors turned to safe-haven assets. Analysts caution that any closure of the Strait of Hormuz, a key route for one-fifth of global oil shipments, could severely disrupt supply. With indications that the conflict may persist for weeks, global stock markets, including the Nikkei and S&P 500, are facing heightened volatility.
Government seeks public input for 2083/84 revenue policy
The Revenue Advisory Committee has invited suggestions from the public and stakeholders for the fiscal year 2026/27 revenue policy. Formed on February 11, the committee is gathering feedback on tax structures, customs duties, and digital service taxes by April 13. Nine subcommittees have been established to study areas such as internal revenue, customs reform, and industrial protection. A final report with policy recommendations is expected to be submitted to the finance minister by mid-May 2026.
Government halts labour permits for Middle East
The government has suspended labour permits for Middle Eastern countries due to escalating conflict involving Israel, the United States, and Iran. Labour Minister Rajendra Singh Bhandari said the decision was taken in view of growing security concerns. More than 1.7 million Nepalis are employed in the region, including large numbers in the UAE and Saudi Arabia. Following reported attacks targeting US bases in Qatar, Kuwait, and Oman, authorities have urged caution and activated rescue preparedness measures, including 24-hour helplines.
Fuel depots to operate during election holiday
Nepal Oil Corporation has announced that its provincial offices and fuel depots will remain open throughout the three-day election holiday from March 4 to March 6. The decision aims to prevent shortages as travel increases ahead of voting. Depots in major cities will operate on staggered schedules. Officials have assured that fuel stocks are adequate and urged the public to avoid panic buying despite long queues observed at some stations.
Nepal imports Holi colours worth Rs 156 million
Nepal imported 251.97 metric tons of Holi colours valued at Rs 156.1 million by mid-February, according to the Department of Customs. The imports generated Rs 33.8 million in customs revenue. The colours were mainly sourced from India, China, Germany, Qatar, and the United Arab Emirates. As demand surges ahead of the festival, authorities have intensified monitoring of synthetic dyes entering through various border points to ensure quality standards.
Middle East conflict disrupts international flights
Escalating tensions in the Middle East led to the cancellation of 27 international flights at Tribhuvan International Airport on Sunday. Flights to and from major transit hubs in Qatar, the UAE, Saudi Arabia, Kuwait, and Oman were affected due to airspace safety concerns. Passengers have been advised to coordinate with airlines as uncertainty continues in regional air travel.
Nepalgunj-Simkot fares surge ahead of elections
Airfares between Nepalgunj and Simkot have doubled to Rs 14,000 as voters travel home for the election. Private airlines have reportedly prioritized charter services, limiting regular scheduled flights. Previously priced at around Rs 9,000, tickets have become scarce, with only limited daily rotations available. Airlines cite operational costs and empty return legs as reasons for the hike.
Thousands stranded at TIA amid MIddle East crisis
The Civil Aviation Authority of Nepal reported that dozens of international flights were canceled over the weekend following military strikes in Iran and subsequent airspace closures in several West Asian countries. Around 3,800 passengers have been stranded at Tribhuvan International Airport. Authorities are working with airlines to manage rebookings, though regular services remain uncertain until restrictions are lifted.
Ilam tea factory rebuild delayed over insurance payout
Reconstruction of the Jasbire Tea Factory in Ilam has been stalled due to delays in insurance compensation following a fire that caused Rs 70 million in damage. The owner has expressed concern that the insured amount has yet to be released, citing pending evaluation reports. Although community support has provided some financial relief, full operations cannot resume without the settlement.
Nepalgunj customs records Rs 44 billion in imports
The Nepalgunj Customs Office reported imports worth over Rs 44 billion from 18 countries in the first seven months of the fiscal year 2025/26. India accounted for the majority of imports. Exports during the same period totaled just Rs 1.63 billion, resulting in a trade deficit exceeding 96 percent. Revenue collection stands at 45 percent of the annual target, leaving significant ground to cover in the remaining months.
Karnali allocates Rs 156 million for local infrastructure
The Karnali Province Government has allocated Rs 156.6 million for road and bridge projects in Sinja Rural Municipality. The budget includes funds for upgrading a multi-year road project and constructing a trust bridge to improve connectivity for remote settlements. Officials have indicated that the tender process will begin soon to ensure timely implementation.
Nepal Telecom introduces bulk SMS service
Nepal Telecom has launched a bulk SMS facility allowing users to send messages to up to 10,000 recipients at once. The service offers multiple pricing tiers and requires a registered SIM card. Users can upload contact lists via the company’s website. The telecom company has stated that senders will be responsible for message content, and the service is expected to support businesses and political campaigns.
Mango production in Madhesh likely to triple
Agricultural officials in Madhesh Province anticipate a sharp rise in mango production this year due to favorable flowering and an “on-year” crop cycle. If weather conditions remain supportive, output could triple compared to last year. The province accounts for the majority of the country’s mango cultivation, with thousands of hectares dedicated to popular varieties supplied to major markets.
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