KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic landscape reflects a mix of resilience, structural vulnerabilities, and increasing state intervention. While strong remittance inflows reported by Nepal Rastra Bank continue to support external stability and liquidity, domestic indicators show strain, evident in the volatile performance of the Nepal Stock Exchange, declining gold and silver prices, and rising construction and aviation costs driven by fuel price shocks.
At the same time, the deepening financial crisis at Nepal Oil Corporation highlights fiscal risks from global energy dependence. Policy responses, including tighter financial oversight, extended regulatory deadlines, anti-leakage campaigns, and new data-driven initiatives, suggest a government attempting to stabilize and formalize the economy.
However, governance concerns persist, as seen in money laundering cases, cooperative sector distress, and unpaid industrial liabilities. Overall, the economy appears to be sustained by external inflows and public spending, but constrained by weak regulation, cost pressures, and uneven institutional effectiveness.
NEPSE closes week with modest gains amid choppy trading
The Nepal Stock Exchange (NEPSE) ended Thursday with a slight increase of 5.82 points, settling at 2,782.18, marking a 0.20% rise. However, the Sensitive Index slipped by 0.08% to 473.23. Market activity throughout the week remained unstable, with heavy declines on Sunday and Monday, a recovery on Tuesday, and another sharp drop on Wednesday. On Thursday, a total of 21.32 million shares were traded through 103,225 transactions, generating a turnover of Rs 8.819 billion. Among 328 listed companies, 98 recorded gains, 158 declined, and 12 remained unchanged. Sector-wise, manufacturing rose by 1.77% and trading jumped 2.53%, while finance dropped 0.87% and commercial banks edged down by 0.11%. Other sectors showed mixed performance.
Gold and silver prices decline in domestic market
Prices of precious metals fell on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold dropped by Rs 3,600 per tola to Rs 294,000, down from Rs 297,600 the previous day. Silver also declined by Rs 165 per tola, now trading at Rs 4,780 compared to Rs 4,945 on Wednesday.
Remittance inflows hit rs 1.449 trillion in eight months
Nepal received Rs 1.449 trillion in remittances during the first eight months of the fiscal year 2025/26 (July 17, 2025 to March 14, 2026), according to Nepal Rastra Bank. This represents a 37.7% increase compared to the same period last year. In the one-month period between mid-February and mid-March alone, inflows totaled Rs 188.64 billion. In US dollar terms, remittances rose by 31%, reaching USD 10.15 billion.
NRB pushes deadline for remittance firms to raise capital
Nepal Rastra Bank (NRB) has extended the timeline for remittance companies to meet minimum paid-up capital requirements by an additional two years. As per the revised Remittance Bylaws, 2023, firms now have until mid-July 2030 to achieve a capital base of Rs 100 million, compared to the earlier deadline of mid-July 2028. The amendment also permits remittance companies to operate payment service providers or system operators through subsidiaries with NRB approval. For new licenses, remittance firms must maintain Rs 250 million in capital, while other related entities require Rs 100 million.
India commits Rs 473 million for local development projects
The Government of India and Nepal’s Ministry of Federal Affairs and General Administration signed agreements for seven high-impact community development projects on Thursday. With a total grant of Rs 473 million, the projects will focus on sectors such as education, health, and agriculture. Planned initiatives include cold storage facilities in Nawalparasi (Bardaghat Susta Purba) and Tehrathum, a hostel in Mustang, and school infrastructure in Kailali, Dolpa, and Banke. A birthing center will also be built in Rautahat. Since 2003, India has supported 598 such projects in Nepal.
Broker faces action in Deepak Bhatta money laundering case
The Department of Money Laundering Investigation has instructed the Securities Board of Nepal and the Nepal Stock Exchange to take action against Bhrikuti Stock Broking Company (Broker No. 55). The investigation found that businessman Deepak Bhatt purchased shares of Nepal Reinsurance Company and others using Rs 3.81 billion from third-party accounts rather than his own. The broker reportedly failed to collect the required 25% advance payment and accepted funds from unauthorized sources. Authorities are now preparing to suspend the broker for breaching trading regulations.
Survey launched to assess cooperatives’ contribution to GDP
The National Statistics Office, in collaboration with the Department of Cooperatives, has initiated the Cooperative Institution Survey, 2026. The study aims to determine, for the first time, the contribution of cooperatives to Nepal’s Gross Domestic Product. Data will be collected from 3,022 sampled cooperatives by June 24. The survey will analyze employment, capital formation, and financial indicators of cooperatives with assets exceeding Rs 500 million. Individual data will remain confidential under the Statistics Act, 2022, with findings expected by mid-November 2025.
Finance Minister reviews stock market reforms and digital registry plan
Finance Minister Swarnim Wagle held a high-level discussion with the Securities Board of Nepal and the Nepal Stock Exchange regarding recent market volatility. Concerns were raised about a proposed Integrated Digital Asset Registry to be implemented within 100 days to monitor investments and curb corruption. Investors have expressed worries about increased scrutiny. The minister assured stakeholders that the government remains committed to strengthening the capital market through structural reforms.
Govt announces crackdown on revenue leakage
The Central Revenue Leakage Control Committee has decided to roll out a nationwide campaign to combat financial leakages. During a meeting at the Ministry of Finance, Finance Minister Swarnim Wagle and Home Minister Sudhan Gurung directed officials to enforce a strict zero-tolerance approach. Authorities have been instructed to strengthen border surveillance and intensify market inspections. A dedicated task force will also be formed to implement targeted actions aimed at meeting revenue goals.
Minister begins direct talks with cooperative scam victims
Minister for Land Management, Cooperatives, and Poverty Alleviation Pratibha Rawal has initiated direct engagement with victims of cooperative fraud. This move supports the government’s plan to reimburse small depositors within 100 days. On Thursday, affected individuals from across the country gathered at the ministry to present grievances over unrecovered savings. The government is prioritizing these cases to design an effective relief strategy, particularly for small-scale investors.
Energy Ministry sets up panels to review power agreements
The Ministry of Energy, Water Resources, and Irrigation has formed two high-level committees to evaluate Power Purchase Agreements (PPAs) and electricity generation licenses. One team, led by Rajan Bhattrai, will assess the technical and financial aspects of existing PPAs to enhance transparency and competitiveness. Another committee, headed by Mohan Shakya, will review the progress of issued licenses and identify policy gaps. These initiatives are part of broader governance reforms aimed at boosting hydropower development.
Domestic airfares surge after sharp fuel price increase
Domestic flight fares rose significantly following a steep hike in aviation fuel prices. The Nepal Oil Corporation increased the price of aviation fuel by 75%, setting it at Rs 251 per liter. As a result, the Civil Aviation Authority of Nepal revised fares across routes. The Kathmandu–Dhangadhi route saw the largest increase of Rs 5,480, bringing the fare to Rs 11,090, while mountain flights rose by Rs 4,225. The price hike has been linked to global supply disruptions and rising international energy costs.
Nepal Oil Corporation reports rs 13.31 billion biweekly losses
The Nepal Oil Corporation (NOC) is facing mounting financial pressure, with projected losses of Rs 13.31 billion every two weeks. The surge in global crude oil prices, driven by tensions in West Asia, has increased import costs from the Indian Oil Corporation, while domestic fuel prices remain unchanged. Executive Director Chandika Bhatt warned that the Price Stabilization Fund, once holding Rs 17 billion, has been exhausted. The corporation now requires Rs 27 billion every fortnight to pay its dues. Without a price revision or government support soon, fuel supply disruptions are likely.
Govt halts state advertising in private media
The Government of Nepal has decided to stop all advertisements from federal, provincial, and local bodies in private media outlets. The directive, issued by the Prime Minister’s Office to ministries, commissions, provincial governments, and local units, is aimed at promoting fiscal discipline, improving transparency in the dissemination of public information, and strengthening state-owned media platforms. A letter circulated on Wednesday stated that the move seeks to ensure frugality, transparency, and greater use of government-run media channels.
Siraha to launch economic census from April 15
The District Statistics Office in Siraha has announced that an economic census will begin on April 15 and continue until June 21. Chief Statistics Officer Bimal Yadav said the exercise will gather detailed data from businesses, establishments, and economic units to assess the district’s economic condition. A total of 60 enumerators will be mobilized to cover 18 key sectors, including mining, manufacturing, construction, financial services, and healthcare, providing a comprehensive overview of local economic activity.
Construction slows as crusher operators raise material prices
Construction work in Morang has slowed after crusher industries increased the price of key materials such as stone, sand, and gravel by Rs 4,000 per tipper. Gravel that previously cost Rs 11,000 per tipper is now priced at Rs 15,000. Builders say ongoing long-term projects have become financially unviable under current costs. The Koshi Crusher Industry Association attributed the price hike to higher fuel and transportation costs, as well as shortages of raw materials caused by delays in excavation permits. There are currently 29 crusher industries operating in the district.
Business groups unveil candidates for FNCCI elections
The group led by Naresh Lal Shrestha has announced its candidates for the Commodity Vice President and executive committee positions in the upcoming Federation of Nepalese Chambers of Commerce and Industries elections. The group is aligned with Hemraj Dhakal, who is contesting for Senior Vice President. The panel includes representatives from sectors such as agriculture, tourism, stock markets, and information technology. Meanwhile, Durga Raj Shrestha and Ved Bahadur Shrestha have filed nominations for the FNCCI Bagmati Province President position. The election is scheduled for April 7 in Hetauda to select leadership for the next three-year term.
Sanjivani microfinance removed from central bank watchlist
Nepal Rastra Bank has removed Sanjivani Microfinance Financial Institution Limited from its list of troubled institutions. Previously known as Super Microfinance, the Tulsipur-based firm had been classified as problematic in September 2022. Following a decision on March 19, 2026, the central bank has allowed the institution to resume normal operations. Authorities confirmed that it has fulfilled the required regulatory conditions to operate smoothly in the financial system.
Sugar mill closure leaves farmers and workers unpaid
Indra Sugar and Agro Industries in Nawalparasi (Bardaghat Susta Paschim) has shut down, leaving farmers and workers facing significant financial hardship. The owner, Rakesh Agrawal, is reportedly out of contact in India. The company owes around Rs 60 million to sugarcane farmers and over Rs 10 million in unpaid wages to employees, along with Rs 400 million in outstanding bank loans. Farmers have been forced to sell their produce at lower prices to crushers without government support. Victims are urging authorities to recover dues and take legal action, including issuing an international arrest notice.
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