KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The overall picture that emerges from these developments is one of a mixed but cautiously optimistic economy navigating short-term volatility and structural transition. The sharp decline in NEPSE despite high trading volume signals fragile investor confidence and possible profit-booking amid uncertainty, even as broader economic fundamentals show resilience through rising exports, strong remittance-linked investment interest (as seen in the Beni Hydropower IPO), and expanding industrial capacity such as footwear production.
At the policy level, the government’s 100-point reform agenda and liquidity management by Nepal Rastra Bank indicate a proactive attempt to stabilize the financial system and improve the business environment, a move welcomed by private sector bodies. Meanwhile, sectoral progress—ranging from tourism growth in Ghodepani to infrastructure momentum in transmission lines and financial consolidation in microfinance—suggests underlying economic activity remains active.
However, rising gold prices, external risks like India’s slowing momentum due to the West Asia crisis, and persistent trade imbalances highlight structural vulnerabilities. Taken together, Nepal’s economy appears to be at a crossroads where reform execution, external stability, and investor confidence will determine whether current momentum translates into sustained growth.
NEPSE drops 71.05 points amid broad market decline
Nepal’s stock market saw a sharp fall at the start of the trading week, with the Nepal Stock Exchange (NEPSE) index declining by 71.05 points, or 2.40 percent, to close at 2879.11 on Sunday. Despite the drop, overall trading activity slightly increased, with shares worth Rs 15.03 billion exchanged, totaling about 35.2 million units.
The downturn affected almost the entire market. Out of 266 traded companies, only 10 recorded gains, while 255 saw their share prices fall and one remained unchanged. Even in the declining market, a few stocks delivered gains of around 10 percent, including Reliance Spinning Mills, Super Khudi Hydropower, and Ridge Line Energy. In terms of turnover, Ridi Hydropower led with Rs 711.1 million, followed by Ngadi Group Power at Rs 522.8 million and Soaltee Hotel at Rs 486.9 million. After the decline, total market capitalization stood at Rs 4,888.74 billion.
FNCCI welcomes government’s 100-point governance reform agenda
Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has welcomed the government’s 100-point governance reform plan and its strategy to support the private sector. He said the initiative has boosted confidence among businesses and stressed the importance of cooperation for effective implementation. Dhakal noted that the cabinet-approved agenda aims to make governance more transparent, accountable, and results-oriented. He highlighted key priorities such as digital service delivery, administrative reforms, corruption control, an investment-friendly environment, and entrepreneurship development. He also pointed out that many long-standing demands of the private sector have been incorporated. According to him, proper execution of the plan could support economic recovery, job creation, and sustainable growth.
Birgunj exports cross Rs 66.48 billion in seven months
Exports through the Birgunj customs point reached Rs 66.48 billion in the first seven months of the current fiscal year, marking an increase of Rs 9.94 billion compared to the same period last year. Previously, exports during this period stood at Rs 56.54 billion. According to customs officials, export performance has improved this year, driven largely by refined soybean oil worth Rs 35.58 billion. Other major exports include fruit juice at Rs 4.97 billion, refined sunflower oil at Rs 4.58 billion, refined palm oil at Rs 3.77 billion, textiles at Rs 2.33 billion, and synthetic yarn at Rs 1.58 billion. Imports through the same checkpoint totaled Rs 595.46 billion in the current fiscal year. This reflects an 11 percent increase, or Rs 58.91 billion more, compared to the same period last year.
NRB to withdraw Rs 40 billion to manage excess liquidity
Nepal Rastra Bank (NRB) is set to withdraw Rs 40 billion from the banking system to control excess liquidity. The central bank will use a 21-day deposit collection instrument for this purpose. Currently, total deposits in the financial system exceed Rs 77 trillion. NRB has been using tools such as deposit collection instruments and the Standing Deposit Facility (SDF) to regulate liquidity and stabilize interest rates. Only licensed ‘A’, ‘B’, and ‘C’ class financial institutions are eligible to participate in the auction. The bidding process is conducted online, with interest rates determined competitively. The bank has stated that both principal and interest for the current auction will be settled on April 19, 2026.
Scarlet rhododendrons transform Ghodepani into a spring attraction
With the arrival of spring, the hills of Ghodepani in Annapurna Rural Municipality-6, Myagdi, have been covered in blooming rhododendrons, drawing a growing number of visitors. Both domestic and international tourists are flocking to the area to enjoy the vibrant scenery and panoramic Himalayan views. Tourism activity has increased significantly, with hotels reaching full occupancy and local businesses benefiting from the surge. Located at an altitude of 2,800 meters, the region’s forests have become especially scenic during this season. Local tourism operators report that between 300 and 500 tourists visit the area daily, as the red rhododendron blooms enhance the natural beauty of Ghodepani and nearby Poon Hill.
Damauli–Bharatpur transmission line project moves forward
Construction of the Damauli–Bharatpur 220 kV transmission line under the Tanahun Hydropower Project has gained momentum after resolving long-standing procedural challenges. Issues related to forest land use and tree felling, which had delayed progress, have now been settled. Although the government had earlier approved land use and tree clearance, delays in compensation payments had stalled the project. With financial assurance from the Ministry of Finance and a formal agreement with the Department of Forests and Soil Conservation, work on the ground has resumed.
NCC expresses confidence in government’s reform agenda
Kamlesh Kumar Agrawal, president of the Nepal Chamber of Commerce (NCC), has expressed confidence that the government’s 100-point reform agenda will guide the economy toward growth and stability. He described the plan as a consensus-based framework built on recommendations from a high-level economic reform commission. Agrawal noted that the programme focuses on key areas such as structural reforms, improving the business climate, public finance management, financial sector reform, and administrative improvements. He added that the agenda takes into account global technological changes and evolving economic patterns, which will help modernize economic activities. The private sector, he said, feels encouraged by the government’s flexible and reform-oriented approach.
Nepal exports 30 million pairs of footwear annually
Nepal exports around 30 million pairs of footwear each year and has achieved self-reliance in production, according to the Footwear Manufacturers’ Association of Nepal. The industry has the capacity to produce up to 160 million pairs annually and currently meets about 70 percent of domestic demand. The association stated that the footwear sector plays a vital role in economic growth, employment generation, and foreign exchange earnings. It emphasized the need to further develop and promote domestic industries. The association also announced that its chairman, Suraj Banjade, has been nominated as a candidate for a working committee position in the upcoming FNCCI election.
Department of transport management publishes list of 836 unclaimed driving licenses
The Department of Transport Management has published details of 836 printed but unclaimed driving licenses. On Sunday, the department made the information public through its Facebook page, “Hello Department of Transport Management.” The Department has urged individuals to collect their licenses by presenting the revenue payment receipt. Driving licenses are currently being printed by the Security Printing Center after the department’s printing machine was damaged in a fire during last year’s Gen Z protests.
India’s economy shows early signs of moderation amid West Asia crisis
India’s economy remained strong in the early months of 2026, but recent indicators suggest a gradual slowdown due to external pressures, particularly the West Asia crisis and rising crude oil prices. According to the Finance Ministry’s March Monthly Economic Review, economic activity stayed robust through February, supported by strong demand, infrastructure growth, and policy backing. High-frequency indicators showed continued expansion in manufacturing and services, while consumption indicators such as vehicle sales and digital payments remained strong. Industrial output also reflected resilience, with increased steel and cement production indicating sustained infrastructure and construction activity driven by public investment.
Energy Minister directs officials to ensure visible service delivery
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has instructed officials to ensure that public service delivery is effective, transparent, and immediately noticeable. Addressing senior ministry officials, he stressed the need for clear planning, timely execution, and accountability to achieve sustainable development in the energy sector, better utilization of water resources, and expansion of irrigation systems to boost agricultural production. He also called for stronger coordination, discipline, and a results-oriented work culture, urging employees to carry out their responsibilities with commitment and integrity.
Gold and silver prices rise in domestic market
Gold prices increased in the domestic market on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of gold rose by Rs 5,000 per tola to reach Rs 286,000, up from Rs 281,000 on Friday. Similarly, silver prices also increased, rising by Rs 50 per tola to reach Rs 4,720, compared to Rs 4,670 on Friday.
Beni hydropower completes IPO share allocation for migrant workers
Beni Hydropower Project Limited has completed the allocation of shares under its initial public offering (IPO) reserved for Nepali migrant workers. The allocation process was carried out by issue manager NMB Capital on Sunday, March 29, 2026. As per regulatory provisions, 10 percent of hydropower IPO shares are reserved for Nepalis working abroad with valid labor permits. The company had issued 104,000 shares for this category between March 15 and 19. The IPO received strong interest, with 79,255 applications submitted, of which 79,232 were deemed eligible for the lottery, highlighting significant participation from the Nepali diaspora.
Jeevan Bikas and Unique Nepal microfinance institutions to merge
Jeevan Bikas Laghubitta and Unique Nepal Laghubitta have signed a merger agreement, marking a significant step in Nepal’s microfinance sector. The merger is expected to strengthen financial services and expand outreach, particularly in rural areas. Jeevan Bikas, headquartered in Katahari, Morang, and Unique Nepal, based in Kohalpur, Banke, bring complementary regional strengths. Jeevan Bikas has a paid-up capital of Rs 1.75 billion, while Unique Nepal has Rs 148.5 million. The consolidation is seen as part of a broader trend toward strengthening financial institutions through mergers.
ICAO adopts stricter global environmental standards for aircraft
The International Civil Aviation Organization (ICAO) has introduced stricter environmental standards for aircraft, with implementation beginning in 2026 and full enforcement from 2027. The updated regulations require new aircraft designs to reduce carbon emissions and noise levels. CO2 emission standards will become 10 percent stricter for new aircraft from 2031, while additional rules for in-production aircraft will take effect from 2035. Noise limits have also been tightened, with reductions of six decibels for large aircraft and two decibels for smaller ones, applicable to new designs from 2029. The move aims to promote cleaner technologies and align the aviation sector with global climate goals.
NSE to launch dated Brent crude oil futures from April 13
India’s National Stock Exchange (NSE) will introduce Dated Brent Crude Oil futures contracts starting April 13, 2026, following approval from the Securities and Exchange Board of India (SEBI). The contracts, based on the globally recognized Platts Dated Brent benchmark, will be traded under the symbol “BRCRUDEOIL.” The initiative aims to enhance price discovery and provide market participants with an effective hedging tool aligned with international oil prices. Each contract will represent 100 barrels, with a maximum trading limit of 10,000 barrels. A daily price movement limit of 6 percent has been set, which can be extended to 9 percent after a cooling-off period if exceeded.
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