KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic landscape reflects a mix of cautious optimism and structural challenges. The stock market rebounded at week’s end with strong turnover, supported by new margin lending provisions that could inject additional liquidity, while banks’ rising trading income contrasts with falling deposit rates amid excess liquidity.
However, weak foreign aid inflows and provinces scoring below 50 percent in performance evaluations signal persistent governance and implementation gaps. The confirmation of substantial natural gas reserves in Dailekh presents long-term energy potential, and policy moves such as EV fare reductions and fiscal transparency tools suggest reform efforts are underway.
Meanwhile, corporate results remain uneven, as seen in Reliance Spinning Mills’ profit decline, indicating that broader economic momentum is still fragile despite pockets of resilience.
NEPSE closes week higher with Rs 11.10 billion turnover
The Nepal Stock Exchange (NEPSE) ended the week on a positive note Thursday, gaining 8.97 points (0.33 percent) to close at 2,671.07 after four consecutive days of losses. The Sensitive Index also rose by 1.51 points to 456.72. A total of 27.78 million shares of 337 companies were traded through 106,018 transactions, generating a turnover of Rs 11.102 billion. Of the 13 sectoral indices, eight posted gains — led by Development Banks (up 1.18 percent) and Hydropower (0.97 percent) — while five declined, with Hotels and Tourism dropping the most (1.65 percent). Share prices of 139 companies increased, 115 declined and six remained unchanged.
Gold dips slightly; silver rises
Gold prices fell by Rs 100 to Rs 306,500 per tola on Thursday, while silver gained Rs 50 to Rs 5,340 per tola. International market trends influenced domestic price movements.
Banks cut deposit interest rates for February–March
Most commercial banks have lowered deposit interest rates for the period between February 13 and March 14, reflecting excess liquidity in the banking system. The average maximum rate on personal fixed deposits dropped from 4.68 percent to 4.56 percent. Global IME Bank made the sharpest cut, reducing its rate from 5.5 percent to 4.75 percent. Nepal Bank now offers the highest rate at 5.1 percent, while Standard Chartered and Everest Bank remain at the lower end with 4.25 percent. Institutional fixed deposit rates are capped at 4 percent.
SEBON to allow margin lending for share purchases from today
The Securities Board of Nepal (SEBON) has introduced the Margin Trading Facility Directive 2026, enabling brokers to extend loans to investors for purchasing shares starting today (Friday). Investors must maintain a 30 percent initial margin and at least a 20 percent maintenance margin. Brokers are permitted to lend up to 4.5 times their net worth. Eligible companies must have at least 2.5 million shares listed on NEPSE and must have posted profits in at least two of the past three years. The new provision is expected to boost market liquidity and widen investor participation.
Commercial banks record 34 percent surge in trading income
Nepal’s commercial banks earned Rs 5.208 billion in net trading income in the first half of the fiscal year, marking a 34.36 percent increase year-on-year. The rise was driven by stock market fluctuations and gains from a stronger US dollar. Global IME Bank posted the highest trading income at Rs 552.4 million, followed by Nabil Bank at Rs 464.3 million. While 19 banks reported positive earnings, Agricultural Development Bank recorded a loss of Rs 118.3 million from trading activities.
World Bank unveils Nepal fiscal dashboard
The World Bank on Thursday launched the Nepal Fiscal Dashboard, a digital platform integrating public financial data from federal, provincial and local governments. The tool is designed to help policymakers, researchers and journalists analyze budget allocations, revenue collection and expenditure patterns. Former National Planning Commission Vice-Chairman Shiv Raj Adhikari highlighted its importance for evidence-based policymaking, while World Bank expert Yasuhiro Saito said the platform would enhance fiscal transparency. The Ministry of Finance is also developing a similar dashboard, expected within a year.
Foreign aid inflow falls below target
Nepal has received only 21.27 percent of its targeted foreign aid by the end of the second quarter of the current fiscal year. Of the Rs 287.11 billion projected, only Rs 61.73 billion had been realized by January 14. Grant receipts reached just 13.3 percent of the target, while loans stood at 23.1 percent. The Financial Comptroller General Office reported Rs 14.173 billion in pending reimbursements from development partners. Officials say improved project implementation is crucial to narrowing the gap between commitments and disbursements.
ADB appoints Sona Shrestha as South Asia Director General
The Asian Development Bank (ADB) has named Sona Shrestha as Director General of its South Asia Department, overseeing operations in Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka. With over 27 years of development experience — including more than two decades at ADB — Shrestha previously served as Deputy Director General for South Asia and held senior roles in evaluation and financial sector operations. She holds advanced degrees in economics from the University of California and Smith College. Established in 1966, ADB comprises 69 member countries supporting development across Asia and the Pacific.
Health insurance board clarifies Rs 100,000 coverage limit
The Health Insurance Board has confirmed that the annual Rs 100,000 coverage per family of five remains unchanged under the national insurance scheme. Of the total, Rs 25,000 is allocated for outpatient services and Rs 75,000 for hospitalization and emergency care. Officials say the restructuring is intended to curb excessive outpatient spending, which currently accounts for 70 percent of total claims.
DoTM proposes up to 10 percent fare reduction for EVs
The Department of Transport Management (DOTM) is considering cutting public transport fares for electric vehicles by up to 10 percent, citing lower operating costs compared to diesel buses. Director General Rajiv Pokharel said a revised, scientific fare structure is under study. Transport entrepreneurs have welcomed the move but urged authorities to factor in high battery costs. The proposal aims to promote green transport while maintaining fairness for operators.
Major natural gas reserve confirmed in Dailekh
A study by the China Geological Survey has identified an estimated 80.7 billion cubic meters of natural gas at Jaljale in Dailekh, far exceeding earlier projections of 1.12 billion cubic meters. The Rs 2.40 billion project, supported by Chinese technical assistance, identified the deposit as shale or tight gas. Authorities say further well testing will determine its commercial viability.
Salt Trading Corporation declares 10 percent dividend
Salt Trading Corporation has announced a 10 percent dividend, including 9.49 percent bonus shares and 0.51 percent cash, subject to approval at its Annual General Meeting.
Provinces score below 50 percent in performance review
All seven provinces scored below 50 percent in the latest evaluation by the National Natural Resources and Fiscal Commission. Sudurpashchim ranked highest with 45.70 points, while Madhesh recorded the lowest at 27.28. The assessment, based on 11 governance and fiscal indicators, will influence fiscal equalization grants for 2026/27.
CNI to support national economic census
The Confederation of Nepalese Industries (CNI) has signed an agreement with the National Statistics Office to assist in the upcoming National Economic Census. Officials say private sector involvement will help ensure accurate data collection, particularly in measuring the informal economy.
Reliance Spinning Mills reports 27 percent profit drop
Reliance Spinning Mills posted a 27.24 percent decline in net profit in the second quarter, earning Rs 137.4 million compared to Rs 188.8 million last year. Earnings per share fell accordingly, though net worth per share improved.
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