KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:
NEPSE Falls 20.48 Points As Trading Turnover Drops To Rs 3.27 Billion
Nepal Stock Exchange (NEPSE) fell 20.48 points to close at 2,566.76 on Monday, extending the decline from the previous trading session. Trading turnover also dropped to Rs 3.27 billion from Rs 3.89 billion on Friday, with 90 million shares changing hands through 44,777 transactions involving 359 companies. Only 32 companies recorded gains, while 242 declined and four remained unchanged. Most sectoral indices fell, with manufacturing, life insurance, hotels and hydropower among the biggest decliners. The market remained under pressure following a Securities Board decision requiring prior disclosure by founders holding more than 5 percent before selling shares.
Nepal Rastra Bank Doubles Foreign Exchange Limits For Online Service Exporters
Nepal Rastra Bank has doubled the annual foreign exchange spending and card balance limits for Nepali individuals and institutions earning foreign currency by exporting services online. The revised foreign exchange directive raises the annual limit from USD 5,000 to USD 10,000 for payments and balances linked to software, digital content and other services exported abroad. Amounts exceeding USD 10,000 must be deposited into a bank account. The central bank has also increased the permitted investment by banks and financial institutions in highly liquid foreign government securities from 40 percent to up to 50 percent for countries rated A-/A3 or higher, subject to specified conditions.
Government Introduces Special Price Adjustment For Public Construction Projects
The government has introduced a special price adjustment mechanism for public construction contracts affected by exceptional increases in construction material costs caused by international conflict and supply-chain disruptions. The measure covers materials including petroleum products, bitumen, HDPE pipes, cement and steel. Eligible contracts that remain under execution after March 29, 2026, can receive adjustments based on actual and verified consumption. Contracts without regular price-adjustment provisions may also qualify if they meet government criteria. Where existing adjustment mechanisms apply, eligible special adjustments will be calculated after deducting amounts already payable under existing provisions. The government aims to prevent project disruptions, maintain construction activity and support timely completion.
Nepal Electricity Authority Extends Completion Deadlines For 27 Hydropower Projects
Nepal Electricity Authority has extended the required commercial operation dates for 27 hydropower projects with a combined capacity of 540.47 MW after assessing their actual progress and contractual obligations. The projects had power purchase agreements but failed to meet their original deadlines. The authority classified 218 projects into four categories based on physical progress, RCOD status and developer obligations. The first phase covers projects in categories A and B that submitted required documents and evidence. Category B includes projects delayed by transmission infrastructure, uncontrollable circumstances or those achieving at least 25 percent physical progress. Around 8,292 MW remains under construction across 320 hydropower projects.
Nepal Rastra Bank Raises Foreign Exchange Limits For Treatment, Satellite Services And Imports
Nepal Rastra Bank has increased several foreign exchange limits to facilitate overseas medical treatment, satellite services and service imports. Nepali citizens can now obtain up to USD 30,000 annually for medical treatment abroad, medicines and treatment equipment, compared with the previous USD 15,000 ceiling. Nepali telecom companies can directly pay up to USD 500,000 annually for satellite services rented from foreign providers, up from USD 100,000. Banks may also provide up to USD 30,000 per transaction for service imports based on regulatory recommendation. Payments above that threshold require central bank approval, while existing requirements remain for cases without a regulatory authority and for certain advance foreign payments.
Government Plans Climate-Resilient Infrastructure After Rs 21.5 Billion Flood Damage
The government plans to revise Nepal’s infrastructure design standards after floods and landslides caused an estimated Rs 21.5 billion damage to roads and bridges. Future projects are expected to emphasize climate resilience, stronger structures and designs suited to local geography. Authorities are considering longer and higher bridges with fewer or no piers in river channels to reduce vulnerability during extreme floods. Bridge freeboard and flood-return assumptions are also being reviewed. The disaster has exposed weaknesses in conventional engineering practices, prompting renewed attention to climate-resilient designs previously recommended by international development institutions. The revised approach is expected to guide reconstruction and new infrastructure projects while improving resilience against increasingly severe disasters.
Korala Road Section To Remain Closed For Another Week After Flood Damage
The Beni-Jomsom road connecting Nepal with the open Korala border point with China will remain closed for about another week as reconstruction continues along heavily damaged sections. Two-way traffic has resumed on the Ghasa-Korala section, while work has enabled movement through the Tatopani area. The Pokharebagar bridge approach remains under construction. Road sections at Ratopani and near Bhirkate are severely damaged, while around 100 metres near Begkhola has subsided completely. A major landslide has blocked the road at Baiseri. One-way movement has resumed from Rahughat to Sirubari, while track opening and backfilling continue at several damaged locations. Authorities expect the main section to reopen after further repair work.
Nepal Rastra Bank Seeks International Bids To Mint 300 Million Rs 2 Coins
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