KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and development landscape shows a mix of cautious market trends, robust remittances, and infrastructure progress. The Nepal Stock Exchange declined nearly 1 percent on Monday, reflecting subdued investor sentiment despite sector-specific gains, while gold and silver prices rose sharply, highlighting continued demand for safe-haven assets.
The banking sector demonstrated growth in employee incentives, with commercial banks allocating Rs 4.63 billion in bonuses, signaling financial stability and confidence. Infrastructure and energy projects, including MCC initiatives, continue to expand, complemented by rising electricity access reaching 96.7 percent of households. Remittances from Saudi Arabia set new records, reinforcing foreign inflows as a key economic driver.
Policy reforms, such as digitizing insurance documentation and austerity measures in Madhesh Province, indicate government efforts to enhance efficiency and fiscal discipline. The aviation and tourism sectors are rebounding, exemplified by Saurya Airlines resuming operations, the Annapurna region attracting nearly 300,000 foreign tourists, and Nepal-India border openings supporting cross-border travel. New business activity is evident in helicopter services and SIM registration modernization by Nepal Telecom.
Legislative and administrative developments, including the passage of the Tourism Bill and recruitment of 518 provincial officials, further point to strengthening governance and public service capacity. Together, these trends illustrate a dynamic but cautious economic environment balancing growth, modernization, and prudent fiscal management.
NEPSE slips nearly 1 percent as turnover drops to Rs 10.77 billion
The Nepal Stock Exchange fell by 26.05 points on Monday, down 0.96 percent, closing at 2,672.39 points and extending losses from Sunday. The Sensitive Index declined 0.87 percent to 455.65 points. Trading involved 26.76 million shares from 324 companies across 102,281 transactions, generating a turnover of Rs 10.77 billion, lower than Sunday’s Rs 11.65 billion. Among 13 traded sectors, only trading gained 0.22 percent, while all others closed lower. Khani Khola Hydropower jumped 9.97 percent, whereas Maya Khola Hydropower fell 5.40 percent. Ridi Power led turnover with Rs 771.9 million.
Gold prices rise sharply in Nepal
Gold prices rose Rs 4,100 per tola on Monday, reaching Rs 304,600 per tola from Sunday’s Rs 300,500. Silver also increased by Rs 240 per tola, trading at Rs 5,250 per tola, up from Rs 5,010 on Sunday.
Electricity access reaches 96.7% of Nepali households
The Nepal Multiple Indicator Cluster Survey 2024/25, released Monday, shows 96.7 percent of households now have electricity. Gandaki Province leads at 99.5 percent, while Karnali trails at 80.8 percent. Urban households report 98.2 percent connectivity versus 93.7 percent in rural areas. The survey also found 95.5 percent have telephone access, highest in Bagmati at 97.1 percent and lowest in Sudurpashchim at 92.6 percent.
Commercial banks set aside Rs 4.63 billion for staff bonuses
In the first half of the current fiscal year, 20 commercial banks in Nepal allocated Rs 4.638 billion for employee bonuses, up 8.99 percent from the same period last year. Nabil Bank led the sector with Rs 734.4 million, a 42.57 percent increase. Global IME Bank and Kumari Bank contributed Rs 487.7 million and Rs 482.3 million, respectively. While 11 banks increased bonus provisions, nine banks reported a decrease. Bonuses are typically distributed annually based on these quarterly allocations.
MCC projects in Nepal spend reaches USD 107 million
Millennium Challenge Account Nepal (MCA-Nepal) reported USD 107.75 million has been spent on MCC projects so far, including USD 80.09 million from U.S. funds and USD 27.66 million from the Nepalese government. Key projects include the 18 km Butwal-Gorakhpur transmission line, with 21 of 53 tower foundations completed, and substations in Damouli, Ratamate, and New Butwal under construction. After a brief suspension in early 2025, work resumed in July. Total MCC investment is expected to reach USD 747 million to strengthen the national power grid and strategic road network.
Saudi Arabia records record remittance of SAR 165.5 billion in 2025
The Saudi Central Bank reported foreign workers sent a record SAR 165.5 billion abroad in 2025, a 15 percent increase from 2024. About 400,000 Nepalis are among 12.7 million expatriates contributing to the growth. February 2025 saw the highest monthly spike with 37 percent year-on-year growth. Analysts attribute the rise to the large migrant population, which constitutes 40 percent of Saudi Arabia’s residents. Outward transfers by Saudi citizens totaled SAR 70.40 billion, slightly declining in December.
Govt removes postage stamp requirement for insurance documents
The Nepal Insurance Authority has instructed all insurance firms and brokers to stop requiring physical postage stamps on service-related documents. This follows a December 14, 2025, Council of Ministers decision to abolish mandatory revenue stamps, except where legally required. The move aims to digitize services, reduce administrative costs, and align insurance operations with modern electronic transaction standards.
Madhesh Province orders 20% reduction in non-essential spending
Facing low internal revenue and shrinking reserves, Madhesh Province’s Ministry of Finance directed a 20 percent cut in non-essential budgets, including fuel, books, stationery, monitoring, and miscellaneous expenses. Purchases of new vehicles, furniture, and luxury items are banned, while seminars and hospitality are restricted. Training and meetings are to be conducted virtually. Essential services and ongoing development projects remain unaffected, with violators subject to legal action.
Saurya Airlines resumes flights after 18-month suspension
Saurya Airlines has resumed operations following an 18-month suspension after a July 2024 crash in Kathmandu killed 18 passengers. CAAN renewed the airline’s Air Operator Certificate until 2027 after a safety audit score of 65 percent. The airline will initially operate the Kathmandu-Bhadrapur-Biratnagar route with three CRJ-200 aircraft and plans to acquire three ATR-72-600 planes for domestic expansion.
Annapurna region records 200,000 foreign tourists
The Annapurna Conservation Area Project (ACAP) recorded 299,831 foreign arrivals in 2025, a sharp recovery from 16,105 in 2021. Of these, 177,628 were from South Asia and 122,203 from other countries. Key attractions include Annapurna Base Camp, Tilicho Lake, and Upper Mustang. ACAP Chief Dr. Rabin Kadariya credited trekking infrastructure spanning 7,600 sq km for the growth. Over 25 years, 2.6 million foreign tourists have visited the region.
Four new companies seek helicopter service licenses
The Civil Aviation Authority of Nepal (CAAN) announced four new companies, Heli Air Nepal, Sagarmatha Air, Gaganchumbi Air, and Sumeda Air, are seeking Air Operator Certificates. Danphe Air is also requesting permission to operate 72-seat ATR aircraft. Regulations require new operators to begin with at least three aircraft and expand to five within five years. Currently, 12 helicopter companies operate 40 choppers in Nepal, serving rescue, cargo, and tourism needs, while 30 international airlines connect 28 global destinations.
Nepal Telecom launches online KYC portal for SIM owners
To celebrate its 22nd anniversary, Nepal Telecom introduced an online KYC update portal for GSM prepaid users to correct or update registration details digitally. Users must verify ownership through an OTP and provide five frequently called numbers in the past two months. A one-time in-person visit remains necessary for final verification. The initiative aims to prevent fraudulent SIM registrations and ensure compliance with legal identification.
National Assembly unanimously passes new tourism bill
The National Assembly passed the Tourism Bill unanimously Monday, following review by the Legislation Management Committee. Originally proposed in April 2025, the bill aims to modernize tourism laws, enhance traveler safety, and improve coordination across federal, provincial, and local levels. The bill will now move to the House of Representatives for final approval before presidential authentication.
Petroleum and vehicles drive Birgunj customs revenue
The Birgunj Customs Office collected Rs 116.58 billion in the first half of the fiscal year, largely from petroleum imports (Rs 37.85 billion) and vehicles (Rs 13.98 billion). Other significant contributions included iron products (Rs 6.83 billion), clothing (Rs 5.26 billion), and electrical machinery (Rs 4.91 billion). Revenue remains closely linked to energy and transport imports.
Nepal-India Jamunaha border reopens for third-country tourists
After six years of closure, the Jamunaha border in Banke reopened for international tourists from third countries. Immigration Office Chief Durga Oli confirmed foreign visitors can now use the crossing, expected to boost tourism in Banke and Bardiya, increase hotel occupancy, and facilitate visits to local national parks.
Nepal and Qatar discuss boosting tourism, investment, and air connectivity
Nepal and Qatar held talks to enhance economic, tourism, and aviation cooperation. Minister Anil Kumar Sinha met Qatar’s Ambassador Mishal bin Mohammed Ali Al Ansari, along with FNCCI and Qatar Airways representatives. Discussions focused on increasing direct flights, new destinations, and collaboration between Nepal Airlines and Qatar Airways, particularly for Pokhara and Gautam Buddha airports.
Koshi province public service commission announces 518 vacancies
The Koshi Province Public Service Commission called for applications for 518 technical and administrative positions, including Assistant Sub-Engineer, Land Surveyor, Technical Assistant, AHW, Assistant Accountant, and non-gazetted second-class roles. Candidates must be 18–35 years old (up to 40 for women). Applications close March 1, with a double late fee option until March 8. The recruitment aims to strengthen local governance.
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