KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy shows a cautious outlook, with mixed signals from markets and policy. NEPSE slipped despite high turnover, reflecting weak investor confidence across key sectors. NRB’s Rs 50 billion liquidity withdrawal and the identification of high non-performing loans in major banks highlight tightening financial conditions and structural risks in credit quality.
On the real economy side, rising fuel demand ahead of elections contrasts with slow government spending, particularly in urban development, exposing implementation bottlenecks. Industrial investment in Lumbini and rising tax collections in Hetauda indicate localized growth, while delays in hydropower projects and selective industrial closures signal financing and execution challenges.
Gold’s rebound shows safe-haven demand, and ongoing initiatives in digital infrastructure and new industries suggest potential for long-term diversification. Overall, growth depends on banking reform, improved public spending, and timely completion of key projects.
NEPSE drops 10.25 points as turnover reaches Rs 11.66 billion
The Nepal Stock Exchange (NEPSE) declined by 10.25 points, or 0.37 percent, on Sunday to close at 2,698.44. The Sensitive Index also slipped by 0.85 points (0.18 percent) to 459.63. Trading activity included 26.24 million shares exchanged through 111,978 transactions involving 330 listed companies, resulting in a total turnover of Rs 11.659 billion. Of the 13 sectoral indices, only Investment and Others posted gains, while the remaining 11 sectors—including banking, finance, hydropower, and manufacturing—ended in the red. Share prices of 85 companies increased, 168 declined, and seven remained unchanged.
Gold price rebounds to Rs 300,500 per tola
Gold prices surged in the domestic market on Sunday, rising by Rs 9,500 per tola after earlier losses. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is now priced at Rs 300,500 per tola (11.66 grams). Prices had dropped to Rs 291,000 on Friday after trading at Rs 295,200 on Thursday. Silver also gained Rs 300 to reach Rs 5,010 per tola. In the international market, gold traded at USD 4,467 per ounce and silver at USD 77 per ounce.
Fuel demand rises ahead of March elections
Petroleum consumption has increased as campaigning intensifies ahead of the March 5 House of Representatives elections, according to the Nepal Oil Corporation (NOC). The corporation estimates fuel demand will rise by 10 to 15 percent during peak campaign periods, with daily petrol consumption expected to increase from 2.2 million liters to 2.7 million liters. Despite a 16.7 percent year-on-year drop in international crude oil prices to USD 68.87 per barrel, the domestic price of cooking gas remains unchanged at Rs 1,910 per cylinder. NOC currently maintains diesel reserves for 14 days and petrol reserves for 12 days.
NRB pulls Rs 50 billion from the market
Nepal Rastra Bank (NRB) withdrew Rs 50 billion from the banking system on Sunday through a deposit collection instrument to manage excess liquidity. The move comes as total deposits in banks surpassed Rs 76 billion. Class A, B, and C financial institutions participated in the bidding process, with a minimum bid requirement of Rs 100 million. The principal and interest will be repaid on March 22, 2027. The operation was conducted under the Open Market Operations Bylaws, which allow instruments of up to six months to help stabilize interest rates.
Urban development ministry spends just 6.15 percent of budget
The Ministry of Urban Development utilized only Rs 5.61 billion out of its total allocation of Rs 91.35 billion during the first half of fiscal year 2025/26, achieving just 6.15 percent of its annual target. Capital expenditure remained particularly weak, with only Rs 4.93 billion spent from an Rs 88.49 billion allocation. According to ministry data, the Ministry of Finance froze funding for 2,190 projects worth Rs 61.76 billion, significantly affecting border security posts and urban infrastructure projects.
Loan review identifies weaknesses in 10 commercial banks
A loan portfolio review conducted by Bangladeshi firm Howladar Yunus and Company found notable weaknesses in loan classification among 10 major commercial banks. Nepal Rastra Bank reported that the average non-performing loan (NPL) ratio of these banks—including Nabil Bank and Global IME Bank—stood at 7.70 percent, with two banks exceeding the 10 percent threshold. The review, mandated under IMF conditions, highlighted “evergreening” practices in which banks issued additional loans to stalled projects. NRB spokesperson Guru Prasad Paudel said banks must now increase provisions and submit explanations for regulatory lapses.
Rs 13.5 billion invested in industries across Lumbini Province
Industries and businesses in Lumbini Province attracted investments totaling Rs 13.578 billion during the first six months of the current fiscal year. According to Santosh Kumar Subedi, information officer at the Ministry of Industry, Tourism, and Transport, Rs 7.607 billion was invested in 1,771 small-scale industries. Rupandehi district led with Rs 8.08 billion in investment, followed by Banke with Rs 1.32 billion. The investment created opportunities for 2,084 new entrepreneurs, including 785 women and 1,299 men.
Hetauda revenue office collects Rs 3.27 billion in six months
The Inland Revenue Office in Hetauda collected Rs 800.8 million last month, bringing total revenue for the first half of fiscal year 2025/26 to Rs 3.279 billion. This marks an increase of Rs 88.6 million compared to the same period last year. Office chief Yukta Prasad Subedi said collections included Rs 1.88 billion in excise duty and Rs 593.2 million in income tax. The office also recovered Rs 100 million in arrears by directly contacting taxpayers among its 81,812 registered filers.
Medical association warns of lead contamination in toothpaste
The Nepal Medical Association (NMA) has urged immediate government action after excessive lead levels were detected in commonly used consumer products. Citing a study by SAFED, NMA General Secretary Dr Sanjiv Tiwari said 31 percent of tested cosmetic and hygiene products exceeded international safety limits. Alarmingly, 45 percent of toothpaste samples—including products for children—contained dangerous concentrations of lead. The association warned that lead exposure harms neurological development and called for strict quality testing of all oral hygiene products sold in Nepal.
Two new industries begin operations in Hetauda Industrial District
Two industries have recently started operations in the Hetauda Industrial District. Precious Oyste Refinery Private Limited began test production in January 2026, recycling old electronic waste into metal products—likely the first such facility in Nepal. Meanwhile, Radhakrishna Synthetic Private Limited commenced plastic bag manufacturing on November 16, 2025. Although 13 industries are still under construction, Roto Printing and Nobel Packaging have shut down due to financial constraints. Currently, 147 industries lease land within the district’s 1,642,189.52 square meter area.
Rolpa agriculture center returns 47 percent of allocated budget
The Agriculture Knowledge Center in Rolpa spent only Rs 326.7 million out of its total Rs 615.2 million allocation over the past seven years, returning 47 percent of the funds. Office chief Mahendra Kumar Ojha said the center’s budget has declined to Rs 2.69 billion in the current fiscal year. Despite receiving its highest allocation of Rs 141.9 million in 2021/22, the center spent just 35.43 percent that year. Officials attributed low spending to the COVID-19 pandemic, decentralization of programs, and limited farmer participation.
Feasibility study launched for data centers along Mid-Hill Highway
The Integrated Data Management Center under the Department of Information Technology has begun preparations to establish advanced data centers along the Pushpalal (Mid-Hill) Highway. Center chief Manish Bhattarai said a public notice has been issued to shortlist consultancy firms for a feasibility study in fiscal year 2025/26. The initiative aims to improve digital infrastructure and internet access in hilly regions. Under budget provision 127, the government plans to collaborate with private firms by providing land, electricity, and security.
Gorkha Provincial Hospital to draft three-year strategic plan
The management committee of Gorkha Provincial Hospital has decided to develop a three-year strategic plan to guide its future operations. A three-member team led by Nursing Chief Prasanna Tamang will prepare a draft within one month. Committee chair Krishna Dhakal also announced the formation of a separate five-member panel, led by Dr Shambhu Adhikari, to review staff remuneration and benefits. The hospital plans to expand ENT and dermatology services and introduce 17 new laboratory tests along with endoscopy facilities.
CTEVT announces 98 job vacancies
The Council for Technical Education and Vocational Training (CTEVT) has opened applications for 98 positions across administration, engineering, accounting, and legal services. Vacancies include Officer Second Class, Officer Third Class, and Assistant-level posts. Applications must be submitted online through www.ctevt.org.np. The age limit is 40 years for second-class officers and women, and 35 years for other applicants. The deadline is March 7, with an extended deadline of March 14 subject to a double late fee.
Atithi Resort and Spa applies for 1.6 million unit IPO
Atithi Resort and Spa filed an application with the Securities Board of Nepal (SEBON) on February 3 to issue an initial public offering. The company plans to float 1,625,000 ordinary shares at a face value of Rs 100 per share. Prabhu Capital Limited has been appointed as the issue and sales manager. The company operates a four-star luxury resort in the Shantipatan area of Lakeside, Pokhara, offering premium rooms, suites, and specialized spa services.
Super Khudi hydropower project faces delays and financial risks
Super Khudi Hydropower is developing the 26-megawatt Upper Khudi Hydropower Project in Lamjung, but only 83 percent of the work has been completed despite a planned commercial operation date of January 21. Project costs have climbed to Rs 206 million per megawatt. The company reported a paper profit of Rs 194 million for fiscal year 2024/25 under IFRIC 12 accounting standards. However, the lack of a revised completion timeline has raised investor concerns, particularly regarding the eight scheduled 3 percent tariff increments under the power purchase agreement.
Super Khudi to raise Rs 310 million through IPO
Super Khudi Hydropower is preparing to go public by issuing 3.1 million shares worth Rs 310 million, equivalent to 20 percent of its issued capital. Although the prospectus contains some inconsistencies, the primary purpose of the IPO is to clear outstanding dues to suppliers and repay a bridge loan. If used for debt reduction, the company’s debt-to-equity ratio will improve from 63:37 to 56:44. Led by Gyanendra Lal Pradhan, the project faces a shortened license period, as its 35-year term began in fiscal year 2018/19.
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