KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The overall picture suggests cautious economic stabilization alongside continued structural and fiscal pressures. The stock market’s modest gain and improved turnover reflect tentative investor confidence, while steady gold prices and rising silver indicate stable but watchful commodity sentiment. However, high petroleum and fertilizer imports highlight Nepal’s persistent dependence on external supplies, adding strain to the trade balance.
The central bank’s liquidity absorption and expanded priority lending signal efforts to manage excess funds while stimulating targeted sectors such as tourism and IT amid weak private credit growth. Large-scale infrastructure commitments, including the Rs 374 billion Budhigandaki project, road expansions, and provincial investments, demonstrate a development-focused fiscal push, even as public debt nears 46 percent of GDP and external borrowing rises.
Overall, the economy appears to be balancing growth ambitions and infrastructure expansion with monetary tightening and administrative reforms to contain long-term financial risks.
NEPSE closes higher by 10.30 points as daily turnover improves
The Nepal Stock Exchange (NEPSE) climbed 10.30 points, or 0.39 percent, on Wednesday to settle at 2,648.90, alongside a rise in trading volume compared to the previous session. The Sensitive Index also edged up by 1.20 points to 454.57. A total of 10.45 million shares from 333 companies were traded through 48,640 transactions, generating a turnover of Rs 4.451 billion, up from Rs 4.232 billion on Tuesday. Among the 13 sub-indices, 10 posted gains, with the life insurance sector leading with a 1.79 percent increase, while the trading group declined by 0.89 percent. Share prices of 157 companies rose, 90 fell, and 13 remained unchanged.
Country imports over 471,000 metric tons of chemical fertilizers
Between July 17, 2025, and February 12, 2026, Nepal imported 471,511 metric tons of chemical fertilizers, including 278,773 tons of urea and 175,150 tons of DAP. The government has set an annual import target of 600,000 metric tons and allocated Rs 28.821 billion for the purpose. Additionally, Krishi Samagri Company has called tenders for 60,000 more tons to prepare for the upcoming paddy season, backed by a Rs 20 billion budget guarantee from the Ministry of Finance for the next fiscal year.
Gold remains steady while silver price increases
Gold prices remained unchanged at Rs 314,800 per tola on Wednesday, while silver rose by Rs 130 to Rs 5,715 per tola, reflecting adjustments in the domestic bullion market
Petroleum imports through Kakarbhitta reach Rs 11.522 billion in seven months
Petroleum products worth Rs 11.522 billion were imported via the Kakarbhitta border point during the first seven months of fiscal year 2025/26, marking an increase of Rs 602 million compared to the same period last year. Revenue collection rose by 6.70 percent to Rs 5.634 billion. The imports included 62,932 kiloliters of petrol valued at Rs 5.534 billion and 40,352 kiloliters of diesel worth Rs 3.812 billion.
Cabinet approves Rs 374 billion investment model for Budhigandaki project
The Council of Ministers endorsed the financial framework for the 1,200-megawatt Budhigandaki Hydropower Project, estimated at Rs 374 billion. The project will be financed through 30 percent equity and 70 percent debt. The government will contribute Rs 97.47 billion in equity and Rs 150 billion in concessional loans, including half of the infrastructure tax collected on petroleum products. Another Rs 104 billion will be mobilized from institutions such as the Employees Provident Fund. The project, located in Dhading and Gorkha, is targeted for completion within eight years.
Nepal Rastra Bank absorbs Rs 40 billion to manage excess liquidity
Nepal Rastra Bank (NRB) withdrew Rs 40 billion from the banking system on Wednesday through an 88-day deposit collection instrument maturing on May 24, aiming to control surplus liquidity. The instrument was open to Class A, B, and C financial institutions. Deposits in the banking system have surpassed Rs 7.7 trillion. In the second quarter of fiscal year 2025/26, the central bank absorbed a net Rs 28.699 trillion using various monetary tools, including Rs 1.425 trillion through bidding—significantly higher than the Rs 13.999 trillion absorbed during the same period last year.
NRB expands mandatory lending sectors to include tourism and IT
In its mid-term review of the 2025/26 monetary policy, NRB broadened the scope of mandatory sectoral lending to cover tourism, information technology, and export-based industries utilizing domestic raw materials. These sectors join agriculture, energy, and small and medium enterprises on the priority list. While maintaining the bank rate at 5.75 percent and the policy rate at 4.25 percent, NRB relaxed working capital loan provisions, allowing borrowers to retain up to 30 percent of outstanding loans, up from the earlier 10 percent. The banking sector currently holds Rs 7.749 trillion in deposits against Rs 5.8 trillion in loans, reflecting sluggish private sector credit growth.
Federal govt prepares national O&M standards to control staffing
The government is drafting a nationwide Organization and Management (O&M) standard to prevent unnecessary staffing at federal, provincial, and local levels. A task force has been formed to establish objective criteria based on workload and service needs. So far, 38 redundant offices have been dissolved and 332 posts eliminated to reduce fiscal pressure. Experts note that the absence of uniform standards has led to arbitrary recruitment and rising long-term liabilities.
Life insurers collect Rs 1.11 billion in premiums over seven months
Fourteen life insurance companies collected total premiums of Rs 1.11 billion during the first seven months of the current fiscal year, marking a 16.43 percent increase from the same period last year. Nepal Life Insurance led the market with Rs 29.596 billion in premiums, followed by National Life Insurance with Rs 13.311 billion. Rastriya Life Insurance recorded the highest growth rate at 93.89 percent, reaching Rs 7.611 billion.
Nepal receives Rs 65.53 billion in foreign loans in seven months
During the review period, Nepal secured Rs 65.53 billion in external loans, a 6 percent rise compared to last year. Domestic borrowing reached Rs 1.78 billion, achieving 49.19 percent of the annual target. Total public debt now stands at Rs 2.735 trillion, equivalent to 45.95 percent of GDP, with external debt accounting for Rs 1.416 trillion. Officials attributed a Rs 70.68 billion loss to project delays and exchange rate fluctuations.
Govt accepts USD 4 million Chinese grant for elections
The Cabinet approved a USD 4 million grant from China to support the House of Representatives elections. It also declared a three-day public holiday from March 4 to 6 to facilitate voting on March 5.
Department fines one firm and warns 19 during market monitoring
The Department of Commerce, Supplies and Consumer Protection fined JS General Store in Kuleshwor Rs 10,000 for violating consumer protection laws during election-time market inspections. Nineteen other firms were issued corrective directives. Monitoring was conducted in coordination with local representatives and consumer rights activists.
NEA electrifies Manika Dham with Rs 6.5 million investment
Regular electricity service has been extended to Manika Dham in Shuklaphanta-8 for the first time. The Rs 6.5 million project included installing 82 poles and a transformer over five kilometers. The electrification is expected to support upcoming religious events and improve facilities for devotees.
NEA invites bids for cross-border electricity trade
The Nepal Electricity Authority has called for proposals to export 500 megawatts of electricity to India from 2026 to 2030 and to import 200 megawatts for 2027–2028. The minimum export rate is set at INR 5.45 per unit. Currently, Nepal imports around 500 megawatts daily during winter. Bids must be submitted by April 9.
Karnali secures funding for major infrastructure projects
Karnali Province has ensured budget allocation for 92 out of 109 proposed projects, including Rs 159.9 million for the Gamgadhi-Talcha road and Rs 151.9 million for the Hatan-Sinja road in Jumla. Several bridge and suspension bridge projects have also received funding.
Naubise–Nagdhunga road expansion reaches 85 percent completion
The Naubise–Nagdhunga road project in Dhading has achieved 85 percent progress, with major structural works nearing completion. The 12.5-kilometer section is expected to significantly improve supply routes to Kathmandu Valley.
World Bank-supported rural roads completed in Baglung
Blacktopping of 12.2 kilometers of rural roads in Baglung Municipality has been completed with a Rs 480 million World Bank grant. The upgraded roads have reduced travel time and improved local transport and agricultural marketing.
Karnali allocates Rs 160 million for Gamgadhi–Talcha road
Karnali Province has set aside Rs 160 million for blacktopping the nine-kilometer Gamgadhi–Talcha road in Mugu, a vital link to Talcha Airport and Rara Lake. The multi-year project aims for completion by fiscal year 2027/28.
Pokhara to host second WADA Auto Show from March 25
The Western Automobile Dealers Association will organize the second WADA Auto Show in Pokhara from March 25 to 29, showcasing new automotive technologies and products.
Kalinchowk Hydropower launches Rs 137.5 million IPO
Kalinchowk Hydropower Company has issued an IPO worth Rs 137.5 million, offering shares to Dolakha locals and Nepali migrant workers in the first phase. Proceeds will support the 5-megawatt Sangu Khola project.
Shuklaphanta Municipality invests Rs 6.9 million in river embankment
Shuklaphanta Municipality has begun constructing 410 meters of embankment along the Syali River with a budget of Rs 6.9 million to protect settlements and farmland from erosion. The project is expected to conclude within a month.
Govt to bear treatment costs and provide compensation to injured security personnel
The government has decided to cover medical expenses for security personnel and election police injured during the March 5 elections. In the event of fatalities, dependent family members will receive financial compensation. The Cabinet also waived taxes on the China-supported Kathmandu Ring Road improvement project (Kalanki–Basundhara section) and authorized the Inspector General of Police to attend the 21st Interpol Annual Heads of NCB Conference in France from April 8 to 10.
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