KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The overall picture reflects a mixed but cautiously optimistic economic landscape, where improving financial market indicators coexist with structural and external vulnerabilities. The Nepal Stock Exchange (NEPSE) showed resilience with a weekly gain backed by strong turnover, signaling sustained investor interest, while policy moves such as margin trading reforms suggest gradual market maturation.
However, pressures from global factors, particularly fuel supply disruptions linked to geopolitical tensions, continue to strain domestic systems, as seen in restricted LPG distribution and price adjustments by Nepal Oil Corporation. At the same time, stronger institutional performance in areas like customs revenue growth and reduced power outages under the Nepal Electricity Authority indicates incremental efficiency gains.
Yet, uneven fiscal outcomes, such as missed revenue targets and stalled infrastructure projects, highlight persistent governance and implementation gaps. Meanwhile, growth drivers like tourism, agriculture commercialization, and hydropower expansion are gaining traction, but climate risks, financing constraints, and reliance on external markets remain key challenges shaping Nepal’s near-term economic trajectory.
NEPSE rises 14 points on weekly close as turnover exceeds Rs 13.16 billion
The Nepal Stock Exchange (NEPSE) index climbed 14.21 points on Thursday to settle at 2,950.16, posting a solid gain on the final trading day of the week. A total of 343 companies traded 30.43 million shares through 142,734 transactions, generating turnover of over Rs 13.16 billion. Most sectors ended higher, with hotels and tourism and hydropower leading gains at 1.56 percent each, while the trading sector declined by 2.84 percent. Stocks such as Reliance Spinning Mills, Super Khudi Hydropower, and Hotel Forest Inn hit upper circuits, whereas Panchakanya Mai Hydropower dropped 7.48 percent. NRN Infrastructure recorded the highest turnover, while National Hydropower saw the largest trading volume.
Gold and silver prices decline in domestic market
Precious metal prices fell slightly on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold dropped by Rs 2,900 per tola to Rs 285,600, while silver decreased by Rs 100 to Rs 4,820 per tola, reflecting minor corrections in the local market.
Nepal Oil Corporation restricts gas supply amid global tensions
The Nepal Oil Corporation (NOC) has decided to continue distributing half-filled LPG cylinders due to the ongoing Iran-Israel conflict and rising global fuel prices. Following a price hike of Rs 216 per cylinder by Indian Oil Corporation (IOC) on March 1, the NOC increased petrol and diesel prices by Rs 15 per liter from Wednesday night. Officials say a return to full cylinders is not feasible at present due to unstable global supply chains. The corporation continues to revise domestic fuel prices every 15 days to manage losses.
NEPSE clears framework to roll out margin trading
The board of the Nepal Stock Exchange has approved operational procedures to implement margin trading, which is expected to begin shortly. As per the Margin Trading Facilities Directive 2082, brokerage firms must secure approval from NEPSE and upgrade their data backup systems to offer the service. Investors will be eligible to use margin trading only for companies meeting specific criteria, including at least 2.5 million public shares, a net worth above paid-up capital, and profitability in at least two of the past three years. The guidelines also define rules for initial and maintenance margins, allowing brokers to liquidate securities if margin requirements are not met within seven trading days.
Employees provident fund distributes Rs 5.3 billion returns
The Employees Provident Fund (EPF) has allocated Rs 5.3 billion in returns to its contributors for the fiscal year 2024/25. Of this, Rs 5.19 billion has been credited to provident fund accounts, while Rs 105.5 million has been distributed among pension fund members. The payout reflects a 1 percent return on initial balances. The EPF currently serves around 578,000 contributors and 96,000 pensioners, and also provides benefits such as maternity support, accident compensation, and health insurance reimbursements.
Birgunj customs generates Rs 154 billion in seven months
The Birgunj Customs Office collected Rs 154.84 billion in revenue during the first seven months of the current fiscal year, achieving 88.3 percent of its Rs 175.31 billion target. Despite falling short of the goal, the figure is Rs 13.36 billion higher than collections during the same period last year. Monthly data indicates peak revenue collection around December, followed by consistent performance through subsequent months.
Nepal Electricity Authority reports sharp decline in power outages
The Nepal Electricity Authority (NEA) has recorded a significant improvement in power supply reliability in the current fiscal year compared to the previous one. Data shows a sharp reduction in both tripping incidents and outage duration across provinces. Between mid-November and mid-December, tripping incidents dropped from 68 to 32, while outage hours fell from 32 to 14. Similarly, from mid-February to mid-March, total interruption time declined to 12 hours. The NEA attributes the progress to upgraded substations, improved transmission lines, and rapid-response maintenance teams.
Maheshpur customs falls short of eight-month revenue target
The Maheshpur Customs Office in Palhinandan failed to meet its revenue target for the first eight months of the fiscal year. Against a target of Rs 123 million by mid-March, it collected Rs 106.4 million, achieving 86 percent of the goal. Although revenue exceeded expectations in some months, overall performance remained below target. Officials say bridging the remaining gap in the final four months will be challenging.
Mountaineering permits issued to 82 climbers for spring season
The Department of Tourism has started issuing climbing permits for the 2026 spring season, with 82 climbers in 10 groups registered so far. Annapurna I has attracted the highest interest, followed by Ama Dablam. While permits for Mount Everest are yet to be issued, the government has already collected Rs 18.4 million in royalties. The season, which began on March 1, is expected to draw a large number of international climbers.
Pokhara and Koshi province launch joint tourism campaign
The Hotel Association Nepal (HAN) Pokhara, in collaboration with the Nepal Tourism Board, has launched the ‘Jaun Hai Pokhara’ campaign in eastern Nepal to strengthen tourism ties with Koshi Province. The initiative aims to connect key religious and natural destinations such as Bindhyabasini Temple in Pokhara and Barahachhetra in Koshi. Hotels in Pokhara are offering a 25 percent discount during the Phewa New Year Festival from April 12 to 14. The city currently hosts around 1,200 hotels with investments exceeding Rs 600 billion.
Infrastructure upgrades enhance tourism in Hampal, Parbat
Tourism facilities at Hampal Lekh Highland in Parbat, located at 3,300 meters altitude, have been improved with the addition of modern sanitation facilities. Modi Rural Municipality allocated Rs 700,000 for the upgrades to support increasing tourist arrivals. The area now features a 16-kilometer stone-paved trail built with provincial funding. Known for its diverse rhododendron species, Hampal is emerging as an alternative route to the Annapurna Circuit. Plans are underway to extend trails toward Mohare Danda and develop an artificial lake.
Banke land office restores records lost during unrest
The Land Revenue Office in Banke has restored ownership records for 13,409 land parcels destroyed during the Gen Z protests. The documents were lost in arson attacks on September 9, 2025, which forced the office to temporarily shut down before reopening from a rented facility in November. While recent records were recovered digitally, older documents require verification through legal processes. A help desk has been set up to assist landowners in reclaiming their records without additional costs.
Minister blames contractors for delays in Bheri corridor project
Karnali Province Infrastructure Minister Madhav Prasad Chaulagain has held local contractors responsible for delays in the Bheri Corridor road project. A recent inspection found that Caravan Hirachan JV has left five motorable bridges in Nalgad Municipality— including those over Thrakhola and Taaksugad—unfinished since January 15, 2021. Progress on the 25-kilometer Dunai–Lasikyap road has reached only 20 percent in four years. The 310-kilometer corridor, linking Pasagadh to Marim, is considered a key trinational route. The Council of Ministers has decided to assign the remaining 33-kilometer Lasikyap–Sisyol section to the Nepali Army to speed up completion.
Dhading locals raise Rs 1.5 million to construct Thopal Khola bridge
Residents of Nilkantha Municipality in Dhading have mobilized funds to build a bridge over Thopal Khola after failing to secure government support. The project, estimated at Rs 1.5 million, will connect wards 3 and 12, benefiting over 500 people. Contributions from locals range from Rs 5,000 to Rs 70,000. Once completed, the bridge is expected to provide safer access, particularly during the monsoon, for students and elderly residents.
Department penalizes firms for regulatory violations
The Department of Commerce, Supplies and Consumer Protection has fined two firms following inspections that uncovered irregularities. Pilgrims Grocery Private Limited in Swayambhu was fined Rs 201,000, while RS Kirana and Gas Store in Bhainsepati, Lalitpur, was fined Rs 10,000. Acting under the Consumer Protection Act, 2018, the department also issued corrective directives to 17 additional firms to ensure compliance with market standards.
Road upgrade work begins in Myagdi with Rs 10 million budget
Malika Rural Municipality has launched an upgrade of the Batase–Phulbari road, an important link between Darwang and Tamankhola in Baglung. The project, funded through a Rs 10 million provincial grant, has been contracted to Mangala Construction Babiyachaur for Rs 6.5 million. Plans include widening the road to at least six meters, removing hillside sections, installing drainage, and laying concrete, with completion targeted by June 29.
Kailali to roll out Rs 225 million buffalo farming initiative
A large-scale buffalo farming program worth Rs 225 million is set to begin across nine local levels in Kailali next month. Led by the Veterinary Hospital and Livestock Service Expert Center, the project aims to boost milk and meat production while increasing farmers’ incomes. Farmers must be part of cooperatives and maintain at least 10 buffaloes to qualify for subsidies. The program also seeks to attract youth to commercial livestock farming.
Tanahun honey reaches international market under global brand
Beekeeping is expanding in Tanahun after locally produced honey entered international markets. Himalayan Treasure, a subsidiary of Surya Nepal Private Limited, has purchased 2,100 kilograms of honey at Rs 2,000 per kilogram for export under the “Marani Chestnut Honey” brand. More than 500 farmers are now involved, supported by the National Agriculture Modernization Program, with quality testing confirming export standards.
National Innovation Center records Rs 1.7 million in equipment sales
The National Innovation Center’s agricultural tool factory in Birgunj has generated Rs 1.7 million in sales since resuming operations. Products sold include maize weeders, rakes, rice planters, and maize planters. The center has also developed a battery-operated “Agri E-Tiller,” reducing reliance on fuel. The facility, operating since January 2023, employs 45 workers and is funded through proceeds from book sales.
Kalinchowk Hydropower to open IPO for general investors
Kalinchowk Hydropower will issue shares to the general public starting April 5, offering 1,375,000 units—25 percent of its Rs 550 million capital. After allocating shares to locals and migrant workers, the company will now release 684,750 shares at Rs 100 each. Investors can apply for 10 to 10,000 shares until April 8. The issue has been rated ‘CARE-NP BB,’ indicating moderate risk.
Unseasonal storms inflict heavy losses on Rupandehi brick industry
Unexpected rain and strong winds have caused major damage to around 30 brick kilns in Rupandehi. More than 30 million raw bricks were destroyed, with losses running into millions of rupees. Industry operators say rising fuel costs had already strained the sector, and the absence of insurance coverage for raw bricks has worsened the impact. They are now urging the government to include the industry in national insurance schemes.
Comment