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 short-term stress and underlying structural adjustments, marked by a declining stock market, subdued growth projections, and rising commodity prices. The drop in NEPSE and the Asian Development Bank’s lowered growth forecast signal weakened investor confidence and broader economic uncertainty, compounded by political instability and global tensions.
At the same time, rising fuel and precious metal prices highlight inflationary pressures and external vulnerabilities, while the financial strain on the Nepal Oil Corporation underscores fiscal risks. However, policy responses such as liquidity management by Nepal Rastra Bank, regulatory tightening on market practices, and digital governance reforms indicate efforts to stabilize the economy.
Meanwhile, developments in agriculture, local governance, and emerging sectors like coffee production reveal resilience at the grassroots level, though challenges such as climate-induced losses and environmental degradation continue to pose risks. Overall, the economy appears to be navigating a fragile phase, balancing macroeconomic pressures with incremental reforms and localized growth opportunities.
NEPSE drops 13.46 points as most sectors decline
The Nepal Stock Exchange (NEPSE) fell by 13.46 points, or 0.47 percent, to close at 2,837.77. The Sensitive Index and float-based indices also declined. A total of 21.08 million shares from 335 companies were traded in 97,480 transactions, generating Rs 8.99 billion in turnover. Eleven out of 13 sectors recorded losses, while manufacturing and banking saw slight gains. Despite the overall decline, four companies hit the positive circuit limit.
ADB projects 2.7 percent economic growth for Nepal in 2026
The Asian Development Bank (ADB) has forecast Nepal’s economic growth at 2.7 percent for the 2025/26 fiscal year, down from 4.6 percent previously. The slowdown is linked to political unrest, including the Gen Z protests, and the impact of global conflicts. The projection aligns with similar estimates from the World Bank earlier this week.
Gold and silver prices rise in domestic market
Gold and silver prices have increased in the domestic market. Gold rose by Rs 2,200 per tola to reach Rs 296,900, while silver climbed by Rs 85 to Rs 4,960 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Govt makes clear labeling and MRP mandatory on all goods
The Department of Commerce, Supplies, and Consumer Protection has directed that all tradable goods must carry a Maximum Retail Price (MRP) and proper labeling. Imported products must include labels with importer details and MRP, while domestic products must display price, batch number, weight, and other key information. The sale of unlabeled goods and charging above the marked price have been strictly prohibited. Consumers are advised to check product details before purchasing.
NRB absorbs Rs 125 billion in excess liquidity
Nepal Rastra Bank (NRB) withdrew Rs 125 billion from the banking system on Friday using a deposit collection tool to manage excess liquidity. The move followed a bidding process involving commercial, development, and finance institutions, with a minimum bid requirement of Rs 100 million. The five-day instrument will mature on April 15 with repayment of principal and interest.
Fuel prices surge as petrol reaches Rs 219 per liter
Nepal Oil Corporation (NOC) has increased fuel prices effective from midnight Friday. Petrol rose by Rs 17 per liter, while diesel and kerosene increased by Rs 25 per liter. In Kathmandu, petrol now costs Rs 219 per liter and diesel/kerosene Rs 207. LPG prices increased by Rs 100 per cylinder to Rs 2,010, and domestic aviation fuel rose to Rs 257 per liter. The hike was attributed to global market pressures and rising losses.
NOC reports heavy losses amid financial strain
Nepal Oil Corporation (NOC) is facing significant financial pressure, reporting daily losses of around Rs 930 million due to rising international fuel prices. Despite reduced taxes, the corporation continues to struggle with high costs. It recently paid Rs 26.86 billion to Indian Oil Corporation and has further dues pending. Officials said losses remain substantial per unit of fuel, prompting calls for reduced consumption.
NRB promotes two officials to executive director roles
Nepal Rastra Bank (NRB) has promoted Him Prasad Neupane and Muktinath Sapkota to executive director positions. The appointments fill two vacant posts within the central bank. Both officials previously served as senior directors. With this, the NRB now has its full team of 18 executive directors.
Govt launches digital e-pension verification system
Finance Minister Swarnim Wagle has introduced the E-Pension Verification System, enabling pensioners to verify their status digitally. Developed by the Financial Comptroller General Office, the system removes the need for annual physical verification at banks. Users can update details and complete biometric verification online. The initiative is expected to save the government around Rs 900 million annually.
Labor Department orders removal of misleading recruitment signs
The Department of Foreign Employment has instructed cyber centers and training institutes to remove misleading signage related to labor permits by April 13. Notices suggesting such services are provided outside authorized offices have caused confusion among migrant workers. Authorities warned of legal action against non-compliance.
CAAN urges limit on relatives accompanying passengers at airport
The Civil Aviation Authority of Nepal (CAAN) has requested that no more than three people accompany each passenger at airports. The move aims to reduce overcrowding at Tribhuvan International Airport, where increasing flight activity and large groups of visitors have created congestion and security concerns.
Natural disasters inflict Rs 3.192 billion agricultural losses in Jhapa
Severe weather events, including windstorms, hailstorms, and heavy rainfall since mid-March 2026, have caused agricultural losses worth Rs 3.192 billion in Jhapa. The Agriculture Knowledge Center reported that crops valued at Rs 1.727 billion were completely destroyed. Bahradashi Rural Municipality was the worst affected, with around 75 percent of its maize crop damaged, accounting for losses of Rs 272.7 million. Vegetables, fruits, and beekeeping have also been impacted, while authorities continue collecting data for relief efforts.
Chartered accountants hold pre-budget consultations
The Association of Chartered Accountants of Nepal (ACAN) held a pre-budget discussion to provide recommendations for the upcoming fiscal year. The meeting focused on simplifying tax systems and improving policies for banking, insurance, and capital markets. The association plans to submit its report to the government, emphasizing the need for clear fiscal strategies and reduced procedural complexities.
Lahan municipality bank accounts reopened after four months
The bank accounts of Lahan Municipality, frozen for four months due to administrative disputes, have been reactivated. The freeze had disrupted salary payments, social security allowances, and development work. With the issue resolved, authorities have begun releasing pending payments and resuming services.
Lumbini province prepares Rs 33 billion budget for next fiscal year
The Lumbini Provincial Government has started drafting its budget for fiscal year 2026/27, estimating a total outlay of around Rs 33 billion. This marks a decrease from the current budget due to revenue constraints. Ministries have been assigned a combined ceiling of Rs 22–23 billion and must submit plans by mid-April. Chief Minister Chetan Narayan Acharya has directed officials to prioritize feasible and ongoing projects within available resources.
Banke forest office raises Rs 4.28 million from auction
The Division Forest Office in Banke has collected Rs 4.28 million by auctioning seized timber and old bicycles. The sale included 119 bicycles and over 2,500 cubic feet of timber. Officials said the proceeds have been deposited into the provincial fund, while the clearance has improved safety and cleanliness at the office. The office is also overseeing 2,700 hectares under forest management programs.
Suryodaya removes minimum support price for tea
Suryodaya Municipality has scrapped the minimum support price for tea, shifting to a market-based pricing system. The decision followed requests from farmers and factory owners. While quality monitoring will continue, the municipality has urged the federal government to take responsibility for pricing and international promotion.
Coffee farming expands in Mahabharat region
Farmers in Mahabharat Rural Municipality of Kavrepalanchowk are increasingly adopting coffee cultivation due to higher returns and reduced crop damage from wildlife. With government and cooperative support, plans are underway to distribute 100,000 saplings this year. The area has already produced over 80 tons of coffee, strengthening its position as an emerging coffee hub.
Cold storage facility established for apples in Mustang
A 30-metric-ton cold storage facility has been built in Gharapjhong Rural Municipality-5, Mustang, to support apple farmers. The project, funded by the federal government, aims to help farmers store produce for off-season sales, improving income and ensuring year-round availability of fresh apples.
Ginger farming generates Rs 55.6 million in Rukum Paschim
Farmers in Triveni Rural Municipality have earned Rs 55.6 million from ginger production this year. Over 2,600 households cultivated ginger across 5,300 ropanis of land, producing 15,900 quintals. Many farmers reported strong earnings while retaining seeds for future cultivation.
Illegal river mining damages farmland in Jumla
Unregulated extraction of sand and gravel continues to harm farmland and irrigation systems in Jumla. Residents across multiple municipalities report land erosion and environmental damage, including the decline of native fish species in the Tila River. Despite being a revenue source, local governments have struggled to regulate mining activities effectively.
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