KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The overall picture points to a mixed but cautiously stabilizing economic environment in Nepal, where market confidence remains selective rather than broad-based. The stock market slipped marginally despite strong turnover, indicating active trading but lingering investor hesitation, while the sharp rise in gold and silver prices reflects continued demand for safe-haven assets amid uncertainty.
The central bank’s liquidity absorption through a Rs 20 billion deposit auction signals excess funds in the banking system, even as exporters highlight structural bottlenecks such as cross-border transport delays and policy constraints that are dampening trade competitiveness. On the supply side, improved LPG distribution and strong agricultural earnings in districts like Bardia suggest easing pressure in essential commodities, while steady revenue collection, rising labor migration to the UAE, and new private investments point to underlying economic momentum.
However, the large IPO pipeline awaiting regulatory approval and repeated calls for coordinated transport and trade reforms underline that sustaining growth will depend on faster policy execution, infrastructure efficiency, and regulatory clarity rather than liquidity alone.
NEPSE dips marginally as turnover reaches Rs 7.49 billion
The Nepal Stock Exchange (NEPSE) posted a slight decline on Wednesday, slipping 1.64 points to close at 2,681.50, down 0.06 percent. The Sensitive Index also fell by 0.70 points, ending the session at 456.00. Four companies touched the positive circuit during the day. Trading activity remained strong, with 16.68 million shares of 326 companies exchanged through 80,422 transactions, generating a total turnover of Rs 7.499 billion. Among the 13 traded sectors, seven closed higher while six ended in the red. Gains were recorded in finance, hydropower, trading, development banks, hotel and tourism, investment, and non-life insurance, whereas commercial banks, life insurance, manufacturing, microfinance, mutual funds, and others declined. Share prices rose for 113 companies, fell for 134, and remained unchanged for 13.
Gold and silver prices rise again in local market
Gold and silver prices climbed again in the domestic market on Wednesday. Compared to Tuesday, gold prices increased by Rs 14,400 per tola, while silver rose by Rs 265 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold now stands at Rs 304,700 per tola (11.66 grams), while silver is priced at Rs 5,600 per tola. On Tuesday, gold and silver were traded at Rs 290,300 and Rs 5,335 per tola, respectively. In the international market, gold is trading at USD 5,058 per ounce and silver at USD 88 per ounce.
NRB collects Rs 20 billion through deposit auction
Nepal Rastra Bank (NRB) on Wednesday raised Rs 20 billion through a deposit collection auction aimed at managing excess liquidity in the banking sector. The bidding process concluded at 3:00 PM, allowing banks and financial institutions to place electronic bids in multiples of Rs 50 million, with a minimum bid size of Rs 100 million. The 63-day instrument carries interest rates determined through competitive bidding. NRB stated that both principal and interest will be paid on April 8, with allocations made by prioritizing lower interest rate bids.
Exporters call for action on cross-border transport delays
The Nepal Foreign Trade Association held talks with Secretary Dr. Ram Prasad Ghimire of the Ministry of Industry, Commerce, and Supplies on Tuesday, raising concerns over persistent transport delays on Indian routes. General Secretary Jayant Kumar Agrawal called for an increase in railway wagons to speed up cargo movement and urged amendments to the Nepal–India Trade Treaty protocol to allow the import of third-country machinery parts via India. The association also demanded the immediate resumption of export cash subsidies and the implementation of a one-window system for business renewals. Members further criticized the government’s decision to reduce the cash transaction ceiling from Rs 1 million to Rs 500,000.
NOC asks public not to hoard LPG cylinders
Nepal Oil Corporation (NOC) Chief Executive Officer Chandika Prasad Bhatta has urged consumers to refrain from stockpiling LPG cylinders. According to the corporation, 132 gas bullets are currently arriving daily, enough to refill around 114,000 cylinders—well above the normal daily average of 85 to 90 bullets. To ensure uninterrupted supply during the upcoming elections, NOC has arranged the import of an additional 2,000 metric tons of LPG. The corporation assured that the supply situation has stabilized and warned against panic buying, stating that adequate stocks are being distributed to all major bottling plants.
71 companies await SEBON approval for IPO issuance
As many as 71 companies are currently awaiting approval from the Securities Board of Nepal (SEBON) to issue Initial Public Offerings (IPOs). Together, these firms plan to issue 396.47 million shares worth approximately Rs 56.136 billion. Under existing regulations, applicants must submit audited financial statements and detailed project reports for evaluation. Hydropower companies dominate the pipeline, with 34 firms seeking to raise Rs 16.424 billion. The list also includes 23 manufacturing companies, nine hotel and tourism firms, four investment companies, and three micro-insurance providers. One manufacturing company has applied to issue shares at a premium.
Multilateral committee to be formed to tackle transport challenges
Officials from the Ministry of Physical Infrastructure and Transport and the Valley Police have agreed to form a multilateral coordination committee to address long-standing transport and traffic management issues. The decision was taken during a meeting on Tuesday involving Ministry Secretary Keshav Kumar Sharma and Senior Superintendent of Police Navaraj Adhikari. Minister Madhav Prasad Chaulagain stated that traffic management and road safety cannot be effectively handled by a single agency alone. Meanwhile, the Federation of Nepalese National Transport Entrepreneurs urged political parties to prioritize public transport reform in their manifestos ahead of the March 5 elections. Senior Vice President Punya Prasad Sitoula said the federation would back only those candidates proposing practical, technology-oriented solutions to modernize the transport sector and streamline import procedures.
Relief funds released for families of 42 Gen Z martyrs
The Ministry of Urban Development has disbursed funds to provide monthly pensions of Rs 21,800 to the families of 42 individuals recognized as Gen Z protest martyrs. Ministry spokesperson Narayan Regmi confirmed that Rs 119 million has been allocated from the Reconstruction Fund to cover payments for the next decade, including a 13th-month bonus each year. Although 76 people lost their lives during the protests on September 8 and 9, 2025, only those officially declared martyrs, excluding individuals who escaped from custody, are eligible. The Ministry of Finance clarified that while it did not formally endorse the specific proposal, the funds were released through established emergency recovery mechanisms.
UAE becomes leading labor destination for Nepali workers
The United Arab Emirates has emerged as the top destination for Nepali migrant workers in the first half of the current fiscal year. According to the Department of Foreign Employment, 99,699 Nepalis migrated to the UAE by January. Saudi Arabia ranked second with 72,303 workers, followed closely by Qatar with 72,247. Malaysia, once the leading destination, dropped to fourth place with 46,143 workers. Analysts attribute the UAE’s growing appeal to large-scale construction projects and more flexible visa regularization policies compared to traditional labor markets.
Janakpur revenue office surpasses monthly target
The Inland Revenue Office in Janakpur collected Rs 733.1 million in January, exceeding its monthly target of Rs 629.7 million by 17 percent. Chief Tax Officer Anand Kumar Gupta reported that cumulative revenue collection for the current fiscal year has reached Rs 2.333 billion, around 90 percent of the annual target of Rs 2.612 billion. Despite a reduction in jurisdiction following the elevation of the Bardibas office, revenue increased by Rs 220 million compared to the same period last year. Officials credited the rise to tax incentives introduced under the Financial Act 2025 and higher levels of economic activity.
Nepal Gas distributes 6,870 cylinders across Kathmandu Valley
Nepal Oil Corporation has announced a detailed distribution plan for Nepal Gas within the Kathmandu Valley. On Wednesday, 6,870 cylinders were distributed through 84 designated outlets to ease recent shortages. NOC officials said gas import volumes have been increased to stabilize the supply chain after consumers reported difficulty obtaining Nepal Gas cylinders. The corporation maintained that supply has now normalized, with regular shipments arriving from multiple refineries.
Stakeholders emphasize promotion of domestic products
Industry leaders stressed the importance of encouraging domestic consumption during a welcome program organized by the Confederation of Nepalese Industries (CNI) for newly elected officials of the Federation of Woman Entrepreneurs’ Associations of Nepal (FWEAN). CNI President Birendra Raj Pandey highlighted the ‘Make in Nepal’ initiative and called for closer collaboration with women entrepreneurs to strengthen the national economy. FWEAN President Darshana Shrestha echoed the sentiment, noting that joint efforts are crucial for empowering women-led enterprises. The program focused on building strategic partnerships to reduce import dependence and expand markets for Nepali-made goods.
Deurali-Janta to invest Rs 4.45 billion in Chitwan facility
Deurali-Janta Pharmaceuticals has unveiled plans to establish a state-of-the-art production facility in Bharatpur-16, Chitwan, with an investment of Rs 4.45 billion. Announcing the project during the company’s 35th anniversary, Executive Director Haribhakta Sharma said construction would be completed within two years. The new plant aims to produce export-quality medicines and is expected to create employment for 550 people. The company currently employs 675 workers and manufactures 296 pharmaceutical products. Director Suraj Bhakta Paudel stated that the investment would make a significant contribution to the national economy.
Bardiya earns Rs 370 million from banana production
Banana farmers in Bardia district generated Rs 370 million in revenue this season, producing 38,000 metric tons of bananas across 750 hectares of land. The Banana Traders Association reported that while sales were initially sluggish, demand surged after the government restricted Indian banana imports due to the TR4 fungus. Following the ban, prices increased from Rs 300 to Rs 500 per crate. Although heavy rainfall caused some fungal damage, the district’s Banana Zone Program continues to expand. Infrastructure such as ripening chambers and tissue culture labs is being developed to support around 600 farmers.
SEBON approves Apollo Hydropower IPO
The Securities Board of Nepal has approved Apollo Hydropower Company Limited’s proposal to issue an Initial Public Offering. The company will float 1.41 million ordinary shares at a face value of Rs 100 per share, amounting to Rs 141 million. Himalayan Capital Limited has been appointed as the issue manager for the hydropower project located in Okhaldhunga. So far in the current fiscal year, SEBON has approved share issuance worth Rs 6.011 billion from 15 companies, including nine hydropower and four manufacturing firms.
Direct bus service launched between Beni and New Delhi
A new direct bus service connecting Beni in Myagdi district with New Delhi was inaugurated on Wednesday by Beni Municipality Mayor Surat KC. Operated jointly by Modern Era Tours and Travels and Shrishti Yatayat, the 1,400-kilometer journey takes approximately 27 hours. The route passes through Syangja, Bhairahawa, and Ayodhya. Buses will depart daily from Beni at 6:45 AM and from New Delhi at 4:00 PM. The fare has been set at Rs 5,400 from Nepal and INR 3,200 from India. The service is expected to benefit pilgrims, migrant workers, and students traveling between the two countries.
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