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The national economy posted a modest year-on-year expansion in the first three months of fiscal year 2025/26, even as quarter-on-quarter indicators point to a contraction, according to the National Accounts Estimates released by the Nepal Statistics Office (NSO).

Based on seasonally unadjusted data—figures that are not corrected for seasonal patterns such as festivals or harvest cycles, the Gross Domestic Product (GDP) at basic prices grew by 3.02 percent in the first quarter of 2025/26 compared to the same period of the previous fiscal year. 

The year-on-year growth, however, remained relatively subdued due to contraction in several production-related activities, including food grain crops, forestry products, life insurance services, and domestically produced construction materials. Despite these pressures, growth in electricity generation and distribution, financial activities, livestock production, fruits and vegetables, trade services, and tourism inflows helped keep overall GDP growth in positive territory.

According to the NSO, estimates of seasonally unadjusted quarterly GDP are first produced on the basis of indicators related to various economic activities. Estimates of seasonally adjusted quarterly GDP are then prepared using the X-12 ARIMA method introduced by the International Monetary Fund (IMF). Quarterly growth rates are calculated based on these estimates, according to the NSO, it added.

According to the estimates, all 18 industrial classifications recorded positive growth on a year-on-year basis during the quarter. This indicates a broad-based but moderate recovery when compared with the first quarter of 2024/25.

In contrast, seasonally adjusted data show that the economy contracted by 1.68 percent in the first quarter of 2025/26 compared to the fourth quarter of 2024/25. According to the NSO, this contraction reflects negative growth in 13 out of 18 industrial sectors, which outweighed modest expansion in the remaining sectors.

Among sectoral performances on a year-on-year basis based on seasonally unadjusted data, the electricity and gas sector recorded the highest growth at 14.91 percent, supported by increased power generation and distribution. This was followed by financial and insurance activities, which grew by 7.07 percent, and professional, scientific and technical services, which expanded by 5.52 percent.

The agriculture, forestry and fisheries sector—the single largest contributor to the economy—posted a growth rate of 1.36 percent. Although paddy production declined during the period, modest increases in livestock, vegetable, and fruit production helped keep overall agricultural value added in positive territory.

Wholesale and retail trade; repair of motor vehicles & motorcycles, the second-largest sector, was estimated to have grown by 3.89 percent year-on-year, driven by growth in domestic production of tradable goods as well as higher imports. On the lower end of the spectrum, water supply, sewerage and waste management activities recorded the weakest growth at 1.11 percent, followed closely by human health and social work activities at 1.19 percent.

Seasonally adjusted quarter-on-quarter data present a more challenging picture. During the review period, only five sectors registered positive growth, while the remaining 13 sectors experienced contraction. The electricity and gas sector again stood out with a 4.95 percent growth compared to the previous quarter.

The agriculture, forestry and fisheries sector, however, contracted by 1.65 percent . Mining and quarrying saw the sharpest decline at 10.05 percent, followed by public administration, defense and compulsory social security-related activities, which shrank by 5.95 percent.

The NSO said the negative quarter-on-quarter performance largely explains the overall contraction in seasonally adjusted GDP during the first quarter, even though year-on-year indicators remain positive.

The Nepal Geotechnical Society (NGS) organized the Geotechnical Model Competition and NGS Youth Symposium 2026 at the Institute of Engineering, Pulchowk Campus, Kathmandu, on Friday. The event was held as a preparatory program for the international conference GeoMandu 2027, scheduled for 17-19 March 2027, under the theme “Mountain Geotechnics for Infrastructure Development.”

The competition showcased physical and conceptual models addressing infrastructure challenges in Nepal’s geologically complex and mountainous terrain. Topics included landslides, sinkholes, earthquake damage, foundation systems, pavements, geogrid applications, hydropower structures, flood and water management, slope stabilization, and tunnelling. The event saw participation from four universities, eight engineering colleges, and eleven student teams, mostly undergraduate engineering students.

Pulchowk Campus won first prize for its model “Siphon Drainage System for Road Slopes to Reduce Landslides.” Universal Engineering and Science College secured first runner-up for “Smart Geotechnical Instrumentation and Early Warning System for Landslide,” while Himalaya College of Engineering placed second runner-up for “Stability Analysis of Cut Slope at Araniko Highway, Dhulikhel, Kavre.” Consolation prizes were awarded to Paschimanchal Campus for a model on smart water management for flood control and groundwater recharge, and to another team from Pulchowk Campus for “Static and Dynamic Analysis of Geogrid-Reinforced Soil in Foundations.”

Alongside the competition, the NGS Youth Symposium 2026 provided a platform for technical exchange and professional discussion. Chaired by Dhundi Raj Pathak, Convener of GeoMandu 2027, the symposium featured technical lectures and a thematic address focused on linking academic research with field practice. Presentations were delivered by Aadarsha Dhakal on modelling of laterally loaded pile foundations, and by Astha Bhatta on flow dynamics and energy dissipation in hydropower systems.

A thematic lecture by Rajan KC highlighted the role of geotechnical engineering in developing safe and resilient road infrastructure in Nepal. The program also included a panel discussion on strengthening transport infrastructure through geotechnical planning, design, and practice. Moderated by Abhash Acharya, the panel brought together experts from government, academia, and the private sector, who emphasized the need for early geotechnical involvement in infrastructure projects and systematic documentation of geotechnical challenges.

NGS General Secretary Kalpana Adhikari outlined the society’s ongoing work in capacity building, youth engagement, and international collaboration. NGS President Indra Prasad Acharya and Conference Chair Mandip Subedi said the event was part of long-term preparations for GeoMandu 2027, which will also host the 11th Asian Young Geotechnical Engineers Conference and the 1st South Asian Conference on Geotechnics in Nepal.

The event concluded with an award ceremony, where awards were presented by Prof. Sushil Bahadur Bajracharya, Dean of the Institute of Engineering, and Bijaya Jaishi, Director General of the Department of Roads.

The Weather Forecasting Division has stated that currently there is no influence of a remarkable weather system in the country.

This afternoon some areas of the Tarai region will experience mist.

According to the Division, there will be partly cloudy weather in the high hill and mountainous areas of Koshi and Sudurpashchim Provinces, while the rest of the areas will remain mainly fair.

Similarly, some areas in the Tarai region will experience mist tonight.

In Karnali Sudurpashchim Provinces, the weather will be partly cloudy, while the rest of the areas will remain mainly clear.

The Division has urged one and all concerned to take necessary precautions as the mist may have partial effects on daily life, tourism, health, as well as air and road transportation.

Yari Customs Office, Hilsa, has been closed for three months after the import of goods was stopped from Taklakot, China, in Hilsa due to extreme cold.

Office staff have shifted to Simkot-based contact office after closing the office from the second week of Poush after the import of goods was stopped from Taklakot from the beginning of Poush month, said Office Chief Ram Raj Jaisi. 

"Though the snowfall has not occurred this year, transport service has also remained closed after the snowfall occurred in November 2025. So goods from Taklakot have not been imported," he added.

However, the border towards China has been kept open, mentioned Chief Jaisi. The Office would be reopened after employees return back to the Office in the second week of Chaitra. The Office has collected Rs 1.865 million in revenue so far since the beginning of the current fiscal year.

Municipal Energy Plans (MEPs) of Varagung Muktichhetra and Gharapjhong Rural Municipalities in Mustang were formally handed over to the local governments on January 7.

The handover ceremonies were held at the Municipality offices where Dr Ranjan Prakash Shrestha, Senior Project Manager at the European Union Delegation to Nepal and Dr Frank Fecher, Program Manager at GIZ Nepal formally presented the MEPs to Rinzen Namgel Gurung, Chairperson of Varagung Muktichhetra Rural Municipality, and Mohan Singh Lalchan, Chairperson of Gharapjhong Rural Municipality.

Developed with technical support from the REEEP-GREEN project implemented by GIZ Nepal, the five-year MEPs aim to promote clean energy use, improve household wiring, encourage electric cooking, support energy-efficient tourism, and enhance productive energy use, particularly for women and marginalized groups.

Varagung Muktichhetra has estimated an implementation budget of Rs 147.3 million, while Gharapjhong has allocated Rs 218.9 million.

The plans will be integrated into the municipalities’ annual and long-term development strategies to strengthen local development and climate resilience.

The government has approved a new legal framework to allow the blending of domestically produced ethanol in petrol.

A cabinet meeting earlier this week endorsed the Order on the Use of Ethanol Blended in Petrol, 2026, formally permitting the Nepal Oil Corporation (NOC) to mix ethanol with imported petrol before distribution. As per the new legal framework, NOC can mix up to 10 percent ethanol in petrol.

NOC currently imports fully refined petrol from India. Officials say blending locally produced ethanol into imported petrol will help lower the import bill, reduce emissions, and create demand for domestic raw materials, particularly from sugar and agro-based industries.

Although the law allows NOC to mix up to 10 percent ethanol, NOC officials say they may begin with two percent and then move to four percent, six percent and eventually 10 percent. 

Under the approved framework, NOC will procure ethanol from Nepali producers and blend it with imported petrol before selling it in the domestic market. The petroleum monopolist has assured that ethanol blending will not compromise fuel quality. 

Ethanol blending has become a common policy tool globally to reduce dependence on fossil fuels. Brazil currently blends about 27 percent ethanol in petrol and has decided to allow up to 30 percent. The United States uses a standard 10 percent blend, while the European Union permits up to 10 percent. Neighboring India has already achieved its target of 20 percent ethanol blending and is already in discussion to move beyond that.

Ethanol is primarily produced by sugar mills in Nepal. It can also be produced from crops like maize, wheat and cassava. Domestic sugar mills have expressed commitment to supply around 50,000 liters of ethanol per day to NOC. 

Consumption figures, however, highlight the supply gap. According to last fiscal year’s data, Nepal imported 746.4m liters of petrol, translating to an average daily consumption of about 2.04m liters. Blending 10 percent ethanol would require roughly 200,000 liters per day. At current production levels of around 50,000 liters daily, only about 2.5 percent blending is feasible. Conservative estimates suggest that Nepal has the potential to produce around 100 kiloliters of ethanol daily.

Nepal first deliberated the idea of blending ethanol in petrol in the early 2000s. In 2003, the Ministry of Industry, Commerce and Supplies directed NOC to blend bio-ethanol in petrol. The NOC even installed blending equipment at its Amlekhgunj depot. However, that initiative stalled due to the absence of a pricing mechanism and purchase agreements with producers.

Ethanol, or ethyl alcohol, is a biofuel derived from biomass such as sugarcane and maize. As an oxygenate, it promotes more complete combustion, leading to smoother engine performance and lower tailpipe emissions. Studies show ethanol blends can cut carbon monoxide emissions by up to 37 percent and significantly reduce hydrocarbons and particulate matter. Ethanol also offers substantial greenhouse gas reductions compared to pure petrol.

Beyond environmental gains, officials say the decision will support domestic agriculture and agro-processing industries, create jobs and align Nepal with regional and global fuel-transition trends. The pace of blending, however, will ultimately depend on scaling up domestic ethanol production and establishing viable commercial arrangements between producers and the state-owned oil monopoly.

Nepal imported petrol worth Rs 64.12bn in 2024/25. Officials estimate that a 10 percent reduction in petrol imports through ethanol blending could save more than Rs 6bn annually at current prices.

The registration of the representatives of the Nepali Congress Special General Convention resumed at 8:30 am today. 

A total of 2,662 general convention representatives of the NC party registered their names on Sunday itself in favor of the Special General Convention (SGC) that began at Bhrikutimandap in Kathmandu.

Eight stalls were set up on the first day of the event organized by a faction of NC supporting SGC.

Event Coordination Committee Coordinator Yubraj Pandey informed the number of leaders in favor of SGC from Koshi Province stood 425, while from Madhes Province 446, from Bagmati Province 432, from Gandaki Province 296, from Lumbini Province 398, from Karnali Province 134, from Sudurpaschim Province 148, and Kathmandu Valley (Kathmandu, Bhaktapur and Lalitpur) 178 and from sister organizations, well-wishers and liaison committees 195.

Pandey said that the representatives, who missed the registration on Sunday, will register their names today. They will be given the time until 11 am today.

Likewise, the closed-door session of the SGC is starting shortly.

The session could not start at 8 am due to some technical issues, the organizer said. 

The closed-door session of the Special General Convention of the Nepali Congress is to begin at 8 am today.

The Coordinator of Secretariat Coordination Committee of the Special General Convention, Manoj Mani Acharya, said that the closed-door session will begin at 8 am today.

The NC Special General Convention started in Kathmandu on Sunday.

At the beginning, the closed-door session will approve the procedures made for the Special General Convention.

Acharya shared that nine different groups will be formed for intensive discussions on policy, rules, statute, political development and other issues in the jamboree.

The party's elderly member will preside over the closed-door session, it has been said.

Earlier on Sunday, General Secretary of the NC, Gagan Kumar Thapa, asserted that the Special General Convention was called in a bid to address public disenchantment.

Addressing the inaugural session of the Special General Convention that kicked off in the federal capital at the call of Special General Convention supporters, General Secretary Thapa stated that the political parties should address the public resentment demonstrated during the Gen Z Movement last September.