KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s latest economic indicators present a mixed but revealing picture of underlying stress alongside selective resilience. While the NEPSE managed a marginal recovery after sharp volatility, falling bank profits and the central bank’s decision to absorb excess liquidity point to subdued credit demand and cautious investor sentiment.
Record-high gold and silver prices signal heightened uncertainty and a shift toward safe assets, even as election-related public spending and India’s logistical support inject short-term fiscal stimulus into the economy. Strong growth in edible oil exports has buoyed headline trade figures, but rising domestic prices and questions over sustainability expose structural weaknesses.
Meanwhile, stalled infrastructure projects, sluggish capital expenditure, inactive cooperatives, and operational bottlenecks at customs offices underscore persistent governance and implementation challenges that continue to constrain broader economic momentum despite policy push for investment acceleration.
NEPSE inches up by 5.38 points amid volatility
The Nepal Stock Exchange (NEPSE) posted a modest gain of 5.38 points, or 0.19 percent, on Wednesday to close at 2,731.89. The slight uptick followed a turbulent trading week marked by a sharp rise on Sunday and heavy losses over the next two sessions. The Sensitive Index slipped marginally by 0.19 points to 464.26. A total of more than 23.6 million shares of 334 listed companies were traded, generating a turnover of Rs 11.49 billion. Corporate Development Bank and Ankhu Khola Hydropower hit their upper circuit limits, while Ankhu Khola Hydropower recorded the highest transaction value at Rs 835.7 million.
Gold and silver prices hit new highs
Gold and silver prices surged to record levels in the domestic market on Wednesday. Gold was traded at Rs 318,800 per tola, up by Rs 9,500 in a single day, while silver climbed to Rs 7,300 per tola. Just a day earlier, gold and silver were priced at Rs 309,300 and Rs 6,870 per tola, respectively. International markets also saw strong gains, with gold trading at USD 5,200 per ounce and silver at USD 111 per ounce, reflecting heightened global volatility.
Finance Ministry releases Rs 19.21 billion for election management
The Ministry of Finance has disbursed Rs 19.21 billion to cover security and logistical expenses for the March 5 parliamentary elections. According to ministry spokesperson Tanka Prasad Pandey, the Ministry of Home Affairs received Rs 10.39 billion, while the Election Commission and the Ministry of Defense were allocated Rs 6.72 billion and Rs 1.99 billion, respectively. The government has projected total election-related spending at Rs 25 billion, including Rs 9.15 billion for deploying around 147,000 election police personnel. Records show that security-related costs consistently outweigh the Election Commission’s operational expenses.
NRB mops up Rs 20 billion to manage excess liquidity
Nepal Rastra Bank (NRB) absorbed Rs 20 billion from the banking system on Wednesday through its deposit collection instrument to address surplus liquidity. The move comes as total deposits in the financial system exceeded Rs 7.6 trillion. Class “A”, “B” and “C” financial institutions participated in the competitive online bidding process, with interest rates determined by market demand. The central bank said both principal and interest will be repaid on April 1, 2027. The measure is aimed at stabilizing interest rates and managing long-term liquidity pressures.
Bad weather disrupts flights at Tribhuvan International Airport
Flight operations at Tribhuvan International Airport were severely affected on Wednesday due to poor visibility caused by adverse weather. Airport spokesperson Santosh Kumar Basnet said visibility dropped to 1,600 meters, below the 2,200 meters required for large aircraft. An Air India flight from New Delhi was diverted to Varanasi, while a Nepal Airlines widebody aircraft from Doha remained in holding over Simara. Several domestic flights to destinations including Tumlingtar, Bharatpur, Surkhet and Rajbiraj were cancelled. Although IFR landings continued, satellite-based RNP/AR approaches were limited to select international carriers such as Qatar Airways and Turkish Airlines.
Net profits of six commercial banks fall by over 9 percent
Six commercial banks that published their half-year financial results for fiscal year 2025/26 reported a combined net profit of Rs 7.42 billion, reflecting a 9.22 percent decline from the same period last year. Everest Bank recorded the highest profit at Rs 2.12 billion, while Nepal Bank posted the strongest growth rate of 183.04 percent. In contrast, Citizens Bank and Nepal Investment Mega Bank saw sharp drops in earnings of 45.78 percent and 43.05 percent, respectively.
Edible oil exports reach Rs 60 billion as local prices rise
Processed edible oils, mainly soybean and sunflower oil, have emerged as a major contributor to Nepal’s exports, totaling Rs 60 billion in the first half of the current fiscal year. Customs data show that raw materials worth Rs 72.68 billion were imported, while processed soybean oil exports alone amounted to Rs 56.82 billion. Edible oil now accounts for nearly 48 percent of Nepal’s total exports, which climbed to Rs 142 billion. However, domestic prices have jumped by Rs 40 to Rs 50 per liter this week, with soybean oil retailing at Rs 295. Experts warn that the trade model, based on a 30 percent value addition to imported raw materials, remains structurally unsustainable.
Finance Minister urges fast-tracking of investment projects
Finance Minister Rameshore Khanal has instructed the Investment Board Nepal (IBN) to move ahead with all viable investment proposals under review. Chairing the 12th meeting of the Monitoring and Facilitation Committee, he stressed the use of public-private partnership models to accelerate development. IBN Chief Executive Officer Sushil Gyewali reported ongoing proposals for a second international airport, fertilizer plants and green hydrogen projects. The board has so far approved 55 projects worth Rs 1.716 trillion. The meeting also agreed to strengthen coordination with local bodies to resolve issues related to land acquisition, forest clearance and power transmission lines.
Kathmandu business expo 2026 opens at Bhrikuti Mandap
The inaugural Kathmandu Business Expo 2026 began on Wednesday at Bhrikuti Mandap. Acting Mayor of Kathmandu Metropolitan City Sunita Dangol inaugurated the event, organized by the Kathmandu Chamber of Commerce and Industry in partnership with the metropolis. The expo features more than 200 stalls showcasing products manufactured entirely in Nepal. Organizers say the event aims to promote domestic entrepreneurship and expand market access for “Made in Nepal” goods, with strong public turnout expected.
Locals call for resumption of Phukot Karnali hydropower project
Residents of Kalikot have demanded the immediate restart of the stalled Phukot Karnali Semi-Reservoir Hydropower Project by submitting a memorandum to the District Administration Office. The 480-megawatt project has remained halted for two years following legal disputes over a 51 percent stake awarded to India’s NHPC Limited. Chief District Officer Gokarna Raj Suyal confirmed that while the court has dismissed the case, the full verdict is yet to be released. The Rs 92 billion project, which includes a 160-meter-high dam, has already spent Rs 450 million on land compensation.
Sitapaila firm fined Rs 51,000 during market inspection
The Department of Commerce, Supplies and Consumer Protection has fined a business firm Rs 51,000 following routine market inspections. Store on the Door Private Limited, based in Sitapaila, Nagarjun-4, was penalized after inspectors identified irregularities. The department inspected 12 firms across Kathmandu, Bhaktapur, Kirtipur and Madhyapur Thimi, issuing corrective directives to 11 establishments while imposing a monetary penalty on one. Authorities say inspections will continue to ensure fair trade during the election period.
India supplies vehicles to support Nepal’s elections
The Government of India has provided 115 vehicles to Nepal for use in the upcoming March 5 elections. The vehicles, currently stationed at Singha Durbar, include 61 cabin pickup vans handed over earlier this week and 54 additional units received on Wednesday. The Ministry of Home Affairs requested the assistance through the Ministry of Finance. India is expected to supply around 650 vehicles in total, which will be allocated to security agencies and administrative offices involved in election management.
Infrastructure shortcomings limit revenue at Maheshpur customs
Maheshpur Customs Office in Nawalparasi (Bardaghat Susta Paschim) collected Rs 75.5 million in revenue in the first six months of the fiscal year, achieving 81.84 percent of its target. Information Officer Lekhnath Bhandari said most revenue came from auctions of seized smuggled goods rather than routine imports. Despite being upgraded to a main customs office in 2018, the facility lacks quarantine services and sufficient space for large vehicles, forcing food imports to reroute through Bhairahawa.
Capital spending remains sluggish in Sindhuli
Capital expenditure in Sindhuli district stood at just 26.56 percent during the first half of the fiscal year. Chief Treasury Controller Rabin Koirala said federal offices spent only 8.76 percent of their allocated budgets, down sharply from last year. The Sunkoshi Marin Diversion Multipurpose Project utilized just 9.16 percent of its funds after contract termination. Provincial offices spent 17.8 percent, while local governments recorded 27.82 percent expenditure, with Kamalamai Municipality holding the largest unspent balance.
Most specialized cooperatives inactive in Kailali
Many agriculture-focused cooperatives in Kailali have become inactive, according to local authorities. Shubhalaxmi Dairy Cooperative in Dhangadhi-1 and Ship Mahima Pig Farming Cooperative in Dhangadhi-7 are currently non-operational. Officials attribute the decline to weak monitoring and reporting mechanisms under the Cooperative Act, 2017. Provincial Cooperative Registrar Ganesh Singh Airi said farmers are increasingly turning to private contractors who offer better prices for milk collection.
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