KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments together point to an economy experiencing mixed signals amid rising political and fiscal pressures: while the stock market’s gains and high turnover suggest short-term investor confidence and liquidity, sharp volatility in gold prices reflects broader uncertainty and speculative behavior.
At the same time, the state faces mounting expenditure burdens from the upcoming general election, ballooning security costs, and a financially strained national health insurance program, underscoring structural stress on public finances. Government interventions, from price controls on essential goods and tighter campaign finance rules to new standards for multi-year project funding, indicate attempts to enforce discipline and transparency, yet they also highlight persistent governance challenges.
Rising imports of motorcycles and interest from foreign investors show pockets of economic momentum, but sectoral vulnerabilities remain evident in traditional industries like Bhojpur’s metal crafts and in Nepal’s continued dependence on imports, whether roses for Valentine’s Day or critical raw materials. Overall, the picture is one of cautious economic activity overshadowed by fiscal strain, policy recalibration, and uneven development outcomes.
NEPSE gains 27 points on Thursday as turnover tops Rs 11 billion
The Nepal Stock Exchange advanced by 27.19 points on Thursday, marking a 1.01 percent rise to close at 2,708.70. Total transaction value exceeded Rs 11.58 billion. The Sensitive Index also moved upward, gaining 0.98 percent to settle at 460.48. Trading activity included 35.57 million shares of 326 companies through 108,817 transactions. Most sectoral indices posted gains, with hydropower and non-life insurance leading the rise, while the trading sector slipped. Share prices increased for 201 companies and declined for 55. Kalinchowk Darshan and Modi Energy reached their upper circuit limits. Union Hydropower recorded the highest turnover at Rs 587.7 million, while Super Madi Hydropower posted the biggest loss.
Gold prices drop by Rs 9,500 in a single day
Gold prices fell sharply on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold declined by Rs 9,500 per tola (11.66 grams), settling at Rs 295,200. This followed a steep increase of Rs 14,400 recorded on Wednesday. Silver prices also fell by Rs 620 to Rs 4,980 per tola. Despite recent volatility, gold prices remain below the all-time high of Rs 339,300 set on January 29.
Govt estimates Rs 31 billion cost for upcoming general election
Prime Minister Sushila Karki stated on Wednesday that the March 5 general election is expected to cost between Rs 31 billion and Rs 32 billion. The Ministry of Finance has already disbursed Rs 19.21 billion, including Rs 10.39 billion to the Ministry of Home Affairs and Rs 6.72 billion to the Election Commission. Election expenses have risen sharply over the decades—from Rs 110 million in 1991 to more than Rs 20 billion in 2017. Security-related spending remains the largest component, with the Home and Defense ministries initially seeking over Rs 20.5 billion to ensure polling security.
Govt orders traders to revise prices of essential commodities
The Department of Commerce, Supplies, and Consumer Protection on Wednesday instructed manufacturers and importers to correct prices of essential goods. Following complaints of artificial price hikes in cooking oil, gas, and rice, the department held discussions with major distributors. Authorities warned that companies involved in excessive profiteering or supply manipulation would face action under the Consumer Protection Act, 2018. The department also announced plans for joint market monitoring with other agencies to maintain fair pricing, market discipline, and uninterrupted supply of daily necessities.
Salaries and allowances for 149,090 election police estimated at Rs 7 billion
The government has recruited 149,090 temporary election police personnel to maintain security during the polls. Of them, 133,980 will serve under the Nepal Police and 15,110 under the Armed Police Force. Their 40-day deployment is projected to cost around Rs 7 billion. Each recruit will earn Rs 869.40 per day, amounting to Rs 34,776 in wages. Additional benefits include Rs 10,300 for uniforms and rations, Rs 1,200 for snacks during the four-day voting period, and Rs 846 for transportation. Altogether, election security will involve a force of nearly 340,000 personnel.
Health Minister warns insurance program may collapse without Rs 14 billion
Health Minister Dr Sudha Sharma has cautioned that the National Health Insurance Program is at risk of shutting down unless an additional Rs 14 billion is immediately allocated. Finance Secretary Ghanshyam Upadhyay said Rs 10 billion has already been provided this year, but the insurance board still owes about Rs 14 billion to 510 hospitals. Prime Minister Sushila Karki stressed that the government must sustain the program, even if loans are required, as it serves around 9.8 million people. The board’s total liabilities stand at Rs 24 billion, while premium collections in the previous fiscal year reached only Rs 3.75 billion, exposing a serious financial gap.
New rules introduced for funding multi-year projects
The government has enforced the Source Agreement Standards for Multi-Year Projects, 2026, revising procedures for approving long-term project funding. Under the new framework, the National Planning Commission must recommend projects to the Ministry of Finance by December 1, 2025, while the finance ministry must finalize source agreements by December 30. For the ongoing fiscal year 2025/26, ministries may submit proposals by January 14, with final approvals to be issued by February 12.
Election Commission requires separate bank accounts for campaign spending
The Election Commission has endorsed the House of Representatives Election Campaign Bank Account (Operation and Management) Procedure, 2026, to enhance financial transparency. Parties and candidates must now operate separate bank accounts exclusively for campaign income and expenses. Any transaction above Rs 25,000 must be conducted via bank transfer, and cash donations exceeding this limit are prohibited. Contributions from government bodies, NGOs, and foreign sources are banned. Candidates are required to submit expenditure details within 35 days of the election, and records must be retained for six years for possible audits.
More than 32,000 unassembled motorcycles imported in six months
According to the Birgunj Customs Office, Nepal imported 32,331 unassembled motorcycles worth Rs 4.56 billion during the first half of the current fiscal year, generating Rs 4.43 billion in revenue. This represents an increase from last year’s 25,857 units valued at Rs 3.38 billion. Imports of electric motorcycles also doubled to 4,594 units worth Rs 5.8 million, compared to 2,218 units last year. Additionally, 4,567 fully assembled motorcycles worth Rs 458.1 million were imported, up from 2,192 units in the previous year.
Lumbini cabinet clears cooperative and forest law amendments
The Lumbini Province cabinet on Thursday approved the Provincial Cooperative Third Amendment Regulation, 2026. Government spokesperson Dinesh Panthi said the cabinet also authorized the submission of a bill to amend the Provincial Forest Act, 2021, to the provincial assembly. The meeting further endorsed temporary organizational structures for the Office of the Chief Minister and approved permanent positions for the third quarter of fiscal year 2025/26. A new Knowledge Management and Institutional Memory Transfer Procedure, 2026, was also approved to strengthen administrative efficiency.
Foreign investors show interest in export-based industries in Rupandehi
Investors from China and Malaysia have expressed interest in establishing export-oriented manufacturing units in Rupandehi targeting Indian and European markets. A delegation led by Malaysia’s Steward Chen and China’s Joyson Chin recently toured Rupandehi, Kapilvastu, and Nawalparasi, identifying waste processing and multi-utility product manufacturing as promising sectors. Former Lumbini minister Bishnu Panthi facilitated the visit, stressing the need to ease legal procedures to attract foreign investment. Local entrepreneurs and the Rupandehi Industry Association welcomed the interest, citing the region’s proximity to an international airport and the Indian border.
Nepal Telecom launches anniversary discounts on SIM cards and data packs
Marking its 22nd anniversary, Nepal Telecom has rolled out special promotional offers starting Thursday. Prepaid SIM cards are available for Rs 22, down from Rs 90, until February 26. Customers can purchase 22 GB of data for Rs 222 valid for 22 days, or a daily 2 GB pack for Rs 22. The company has also waived the Rs 500 installation fee for new FTTH connections for one month. Subscribers who clear outstanding dues from fiscal year 2022/23 by mid-February 2026 will receive a waiver on late payment penalties.
Blacktopping begins on Shahid Kalika motorway in Tanahun
Residents of Byas Municipality-8 in Tanahun have welcomed the start of blacktopping work on the Shahid Kalika Motorway. With Rs 160 million allocated for the current fiscal year, the project aims to upgrade the road section from Amale Jaubari to Bilauni. Ward chair Yuvraj Gurung said the first phase, costing Rs 40 million, is underway and will extend to Bahunpokhara this year. Tenders have been issued for the remaining Rs 120 million under the second phase. The road is a crucial link for education and healthcare, especially during the monsoon when access to remote areas is often disrupted.
Charcoal shortage threatens traditional metal industry in Bhojpur
The centuries-old metal craft industry in Taksar, Bhojpur, is facing a severe crisis due to an acute shortage of charcoal. Entrepreneur Binod Tamrakar said operational workshops have declined from hundreds to just five. Artisans are now cutting trees themselves to produce charcoal, as it is no longer available in the market. The shortage of raw materials such as wax, along with declining interest among younger generations, has further endangered the trade, which once generated millions in revenue and supplied metalware nationwide.
India to supply 70 percent of roses for Valentine’s Day
The Floriculture Association Nepal estimates that India will supply around 70 percent of the roses needed for Valentine’s Day 2026. Total demand for the week is projected at 450,000 sticks, with 270,000 destined for the Kathmandu Valley and 180,000 for other districts. Domestic production meets only 30 percent of demand due to cold winter conditions. FAN General Secretary Hiramani Sharma noted that strict phytosanitary rules complicate formal imports, potentially encouraging informal inflows. Total transactions are expected to reach Rs 56.2 million, with retail prices ranging from Rs 100 to Rs 150 per stick.
Government reviews decade-old free visa-free ticket policy
The Ministry of Labor has begun reviewing the ‘Free Visa, Free Ticket’ policy introduced ten years ago for workers heading to Gulf countries and Malaysia. Joint Secretary Pitamber Ghimire said the review will assess the policy’s impact on both migrant workers and recruitment agencies. Recruitment entrepreneurs, led by Nepal Association of Foreign Employment Agencies president Bhuvan Gurung, argue the policy is impractical, raises operational costs, limits tax collection, and compromises worker safety. They have called for reforms aligned with international standards and current labor market realities.
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