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 a phase of cautious stability marked by mixed market signals and active regulatory oversight. While the NEPSE index and gold prices have declined, strong stock market turnover and continued growth in mobile banking users indicate sustained investor participation and deepening financial inclusion. The Nepal Rastra Bank’s proposed overdraft cap, liquidity placements, and enforcement actions against non-compliant banks suggest a tighter focus on fiscal discipline and financial sector stability.
Meanwhile, significant customs waivers and steady real estate transactions point to moderate economic activity, though with revenue trade-offs. Falling vegetable prices provide short-term consumer relief, and the resumption of flights in Tumlingtar underscores gradual normalization in services. Overall, the data portrays an economy balancing regulatory tightening and digital expansion amid moderate growth and sectoral adjustments.
NEPSE index falls by 8.16 points
The Nepal Stock Exchange (NEPSE) index declined by 8.16 points on Monday, closing at 2,662.91. Despite the drop, trading activity remained strong, with a total turnover of Rs 7.94 billion. More than 19.6 million shares of 335 listed companies were traded during the session. Most sectoral indices, including hydropower and insurance, ended in negative territory, while finance and hotel sectors posted marginal gains. Redi Power Company recorded the highest turnover at Rs 65.3 million, and shares of Salpa Bikas Bank hit the positive circuit limit.
Gold prices drop by Rs 3,000 per tola
Gold prices in the domestic market fell by Rs 3,000 per tola on Monday following a recent surge. The Federation of Nepal Gold and Silver Dealers’ Association set the price of fine gold at Rs 302,800 per tola, down from Rs 305,800 the previous day. Silver also declined by Rs 125, settling at Rs 4,860 per tola. The adjustments reflect movements in the international bullion market amid ongoing global economic fluctuations.
Mobile banking users reach 20.9 million
Nepal’s digital banking expansion continues, with mobile banking users nearing 20.9 million as of mid-January, according to Nepal Rastra Bank data. Deposit accounts have climbed to 61.77 million, while loan accounts exceed 2 million. The country also has 13.9 million ATM cardholders and 6,511 bank branches. The figures indicate growing public adoption of digital financial services and improved access to formal banking channels.
NRB proposes 5 percent overdraft cap for government
Nepal Rastra Bank (NRB) has prepared a draft bill proposing a six-month overdraft facility for the government to address short-term liquidity gaps. The proposal, submitted to the Ministry of Finance, states that such borrowing must not exceed 5 percent of the previous fiscal year’s revenue. The draft amendment to the Nepal Rastra Bank Act, 2002, also introduces provisions for digital currency and digital banking. Additionally, the central bank has recommended expanding its board to include five independent non-executive directors to strengthen transparency and institutional autonomy.
NRB to place Rs 9.35 billion in fixed deposits
Nepal Rastra Bank has called on eligible financial institutions to apply for hosting Rs 9.35 billion in fixed deposits from its pension and gratuity fund for a one-year term. Of the total amount, Rs 7.48 billion is allocated to commercial banks, Rs 1.40 billion to development banks, and Rs 467.5 million to finance companies. Participating institutions must maintain capital adequacy standards and keep non-performing loans below 8 percent. The move supports liquidity management while safeguarding the central bank’s long-term financial obligations.
Finance Ministry grants Rs 53 billion in customs waivers
In the first half of the current fiscal year, the Ministry of Finance provided customs and tax exemptions totaling Rs 53 billion on imports worth Rs 408 billion. Of the total relief, Rs 14.97 billion supported development projects to facilitate the import of machinery and essential materials. While such incentives are designed to encourage investment and infrastructure growth, the scale of tax expenditures continues to spark debate over revenue implications.
Property transactions reach 50,837, revenue totals Rs 5 billion
A total of 50,837 property transactions were recorded nationwide between mid-January and mid-February. Revenue from registration fees and capital gains tax amounted to Rs 5 billion, slightly lower than the previous month’s Rs 5.17 billion. Although transactions dipped by about 1,000 compared to Poush, officials noted that the market remains relatively steady. Experts expect property activity to increase after the upcoming House of Representatives elections.
Flights resume at Tumlingtar airport after 10-day disruption
Flights at Tumlingtar Airport resumed on Monday after a 10-day suspension caused by poor visibility due to haze. The Civil Aviation Office confirmed that improved weather conditions allowed services to Kathmandu to restart. The suspension had inconvenienced hundreds of travelers in the region. Airlines have now cleared the backlog of passengers, though authorities emphasized the need for better navigation systems to minimize similar disruptions in winter.
Vegetable prices plunge by up to 77 percent
Prices of seasonal vegetables have fallen sharply over the past month, according to the Kalimati Fruits and Vegetable Market Development Committee. Between January 15 and February 15, cauliflower prices dropped by as much as 77.27 percent, with Terai varieties declining from Rs 88 to Rs 20 per kg. Local cauliflower prices fell from Rs 96 to Rs 22. Leafy vegetables such as spinach and mustard greens also saw reductions exceeding 60 percent. Increased seasonal supply in wholesale markets has driven the price decline, offering relief to consumers.
Central bank penalizes three banks for violations
Nepal Rastra Bank has taken regulatory action against NIC Asia Bank, Global IME Bank, and Nepal Investment Mega Bank for non-compliance with banking directives. During the second quarter of FY 2025/26, NIC Asia Bank was fined Rs 400,000 for reporting and leadership-related lapses. Executives of the other two banks received formal warnings over shortcomings in loan loss provisioning and interest rate spread management. NRB stressed the importance of strict regulatory compliance to preserve financial stability and public confidence.
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