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 cautious optimism tempered by structural challenges. The stock market posted modest gains and bullion prices edged higher, signaling stable investor sentiment, while banks continue to grapple with a large liquidity surplus amid weak credit demand despite policy efforts by Nepal Rastra Bank to stimulate productive-sector lending.
Regulatory tightening in foreign employment health checks and heightened customs and market monitoring ahead of elections indicate governance vigilance during a politically sensitive period. Meanwhile, Nepal Airlines reported improved performance, and essential services, including flights, are set to operate smoothly on election day to sustain economic activity.
However, stalled infrastructure plans and unused public investments highlight implementation gaps, even as local agricultural expansion, flood control projects, and anti-trafficking efforts demonstrate ongoing development and social protection initiatives.
NEPSE inches up 0.22 percent to end week at 2,654.93
The Nepal Stock Exchange (NEPSE) gained 6.03 points (0.22 percent) on Thursday, closing at 2,654.93 and finishing the trading week in positive territory. The Sensitive Index rose 0.42 percent to 456.51. However, daily turnover declined to Rs 4.17 billion from Rs 4.45 billion the previous day, with 10.05 million shares of 335 companies traded through 44,204 transactions. Nine of the 13 sectoral indices advanced, led by non-life insurance, finance and commercial banks, while manufacturing, microfinance and mutual funds posted losses. Share prices of 137 companies increased, 118 declined and seven remained unchanged.
Gold and silver prices climb in domestic market
Gold prices rose by Rs 600 per tola to Rs 315,400, while silver increased by Rs 10 to Rs 5,725 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. The uptick reflects ongoing adjustments in the domestic bullion market.
Banks sit on Rs 11.49 billion in surplus liquidity
As of February 23, commercial banks mobilized Rs 431 billion in deposits while issuing only Rs 214 billion in loans, resulting in a substantial liquidity surplus of Rs 1.149 trillion available for investment. Despite historically low interest rates, credit demand remains weak amid political uncertainty and subdued private sector confidence following the September 8 Gen Z protests. Nepal Chamber of Commerce President Kamlesh Agrawal said more than 150,000 borrowers have been blacklisted over five years, further slowing lending growth. Although NRB targets 12 percent credit expansion this fiscal year, analysts remain skeptical.
NRB plans revision of sectoral lending caps to spur investment
In its mid-term monetary policy review, Nepal Rastra Bank (NRB) announced it will revise sectoral credit limits to channel more funds into productive sectors. Tourism, information technology and export-based industries using domestic raw materials will now be included in the priority lending framework, which previously focused on agriculture and energy. Rastriya Banijya Bank CEO Devendra Raman Khanal pointed to early recovery signs in real estate and margin lending, expressing optimism that political stability after the March 5 elections could boost credit demand. The central bank also introduced flexibility in working capital loans and restructuring provisions to revive broader economic activity.
Labor Ministry enforces stricter foreign employment health check rules
The Ministry of Labor, Employment and Social Security has tightened oversight of mandatory medical examinations for migrant workers in line with the 2015 guidelines. The ministry warned that some NGOs, individuals and foreign agencies in Gulf countries and Malaysia have been unlawfully influencing health checks and charging unauthorized fees. Such practices bypass official agreements and add financial burdens on workers. The Foreign Ministry has been asked to coordinate with diplomatic missions to ensure any changes in health screening procedures by destination countries receive prior government approval. Only government-listed institutions are authorized to conduct these examinations.
Tourists allowed vehicle permits two days before polls
The Election Commission has permitted tourists to secure vehicle passes at least two days before the March 5 election. As per the Vehicle Permission Procedure, 2026, flights will remain unaffected. Spokesperson Narayan Prasad Bhattarai said permits can be obtained from the Commission in Kathmandu or respective district administration offices. While public transportation will be restricted, essential services, diplomatic missions and human rights observers are exempted.
Nepal Airlines posts 7 percent revenue growth in first half
Nepal Airlines Corporation reported a 7 percent rise in revenue and an 18.7 percent increase in passenger numbers during the first six months of fiscal year 2025/26 compared to the same period last year. Spokesperson Archana Khadka credited improved aircraft utilization and efficient flight scheduling across international routes. Flights between January and March are operating with high occupancy rates, and the national carrier aims to expand services and strengthen market strategies to stay competitive regionally.
Flights to operate normally on election day
The Election Commission confirmed that domestic and international flights will run as scheduled on March 5. Passengers with valid tickets will be allowed to travel between airports and hotels using private or airline-arranged vehicles. Under the Election Security Management Directive, 2026, voters must present valid identification such as a voter ID card, citizenship certificate, national ID, passport, land ownership certificate or driver’s license. A dedicated desk at the Commission’s secretariat, in coordination with the District Administration Office, Kathmandu, will issue vehicle passes for polling day.
Emergency highway landing strip plan stalled for five years
The government’s proposal to convert sections of national highways into emergency landing strips, introduced in the 2019/20 policy, remains inactive. A feasibility study had identified potential sites in Janakpur-Jatahi, Birgunj-Pathlaiya and Butwal-Narayangadh, but progress has halted due to funding and prioritization issues, according to Physical Infrastructure Secretary Keshav Kumar Sharma. Infrastructure expert Surya Raj Acharya suggested upgrading existing Terai airports instead, citing cost and safety concerns associated with integrated road-airstrip systems.
Eleven view towers in Bagmati lie unused
Bagmati Province invested Rs 288 million between 2020 and 2023 to construct 11 view towers and hill stations across eight districts. However, most remain unused due to the absence of management plans. Although the Tourism Infrastructure Transfer and Management Procedure, 2024 was introduced to facilitate handovers to local levels, many structures remain neglected. Critics argue the projects lacked feasibility planning.
Customs Department cautions against election-time smuggling
The Department of Customs has alerted its 43 offices nationwide to guard against a possible rise in illegal trade ahead of the March 5 polls. Director Kishore Bartoula warned that smuggling often increases when security personnel are deployed for election duties. With demand for goods and campaign materials surging, authorities fear revenue leakage at open borders with India and China. The Department of Revenue Investigation has been directed to coordinate monitoring efforts.
Dairy company fined Rs 20,000 over registration lapse
The Department of Commerce, Supplies and Consumer Protection fined Bhagawati Dairy Industry in Gokarneshwor-9 Rs 20,000 for failing to renew its registration. Authorities have intensified market inspections ahead of elections to prevent irregularities. On Wednesday, 12 businesses were inspected, and several were instructed to improve compliance standards.
Hailstorm devastates winter crops of 70 families in Salyan
A severe hailstorm in Darma Rural Municipality-5, Salyan, destroyed winter crops belonging to 70 households. Wheat, mustard, legumes and vegetables were wiped out within minutes. Local authorities have begun damage assessments as affected farmers seek urgent relief support.
New embankment protects Kutiyakabar village from floods
An 816-meter embankment constructed along the Jogbudha River has reduced flood risks for around 150 families in Dodhara Chandani-10. Built at a cost of Rs 51.6 million, the project has provided relief, though additional funding is needed for further river control works.
CIB rescues 382 Nepalis from overseas scam centers
The Central Investigation Bureau (CIB), in coordination with the Ministry of Foreign Affairs, has rescued 382 Nepalis from illegal online scam networks operating in Thailand, Myanmar and Cambodia. Cases have risen sharply this fiscal year. Many victims, often tech-savvy youth, are reluctant to file complaints due to threats or coercion.
Mustard cultivation expands to 3,746 hectares in Nawalparasi
Farmers in Nawalparasi (Bardaghat Susta Purba) have expanded mustard farming to 3,746 hectares this year, up by 21 hectares from last year. Production is projected at 4,667 metric tons, with an average yield of 1.25 metric tons per hectare. Rising demand for edible oil has encouraged the shift.
Pokhara increases watermelon farming to over 40 hectares
Pokhara Metropolitan City has expanded watermelon cultivation to about 40.7 hectares this year. The city provided subsidies on seeds and mulching materials for part of the area and set a minimum support price of Rs 35 per kilogram to encourage commercial production.
Bhirkot begins pilot watermelon project along Aandhikhola
Bhirkot Municipality in Syangja has launched a pilot watermelon farming initiative across 1.01 hectares with support from Heifer International. Eighteen farmers are testing Lakshmi and Saraswati varieties, with the municipality pledging market support if needed.
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