KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top highlights:

PM Oli Reaffirms Commitment to Development, Slams Unruly Political Elements:

Prime Minister KP Sharma Oli said the government formed by major parties is driving development and good governance. Speaking at a CPN UML event in Damak, Jhapa, he criticized unruly elements in politics, indirectly pointing at Durga Prasai. Oli ruled out any return to monarchy and emphasized political stability. He highlighted upcoming policies to modernize agriculture and support entrepreneurship. Oli also mentioned new ordinances, including one on land. He called on UML members to intensify outreach under the vision of “Prosperous Nepal, Happy Nepali.”

Finance Minister Claims Signs of Economic Recovery:

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has claimed that Nepal’s economy is showing signs of gradual improvement. Speaking at a press meet in Tansen, Palpa, he credited the government’s efforts since its formation for the positive indicators. Paudel said earlier economic indicators were largely negative but are now stabilizing. He also stated that the delay in appointing a new NRB governor will yield better results. Additionally, he assured timely completion of the Siddhababa Tunnel to enhance road safety.

Share-Backed Loans Surge by Rs 28.4 Billion in Seven Months:

By mid-March of the current fiscal year, banks in Nepal injected an additional Rs 28.4 billion into the stock market through share-backed loans, according to Nepal Rastra Bank. Total share mortgage lending reached Rs 118.5 billion, up 31.5% from Rs 90.09 billion last July. Loans above Rs 10 million saw a 41.5% rise. Other loan ranges also grew: 18.9% in the Rs 5–10 million bracket, 14% in Rs 2.5–5 million, and 11.4% in loans below Rs 2.5 million.

Work on Nagdhunga and Sunkoshi-Marin Projects Stalled:

Construction of two major infrastructure projects — the Nagdhunga–Sisnekhola tunnel and Sunkoshi–Marin diversion — has nearly come to a halt. Work on the Nagdhunga tunnel has been stalled for 27 days due to unresolved local demands. Despite repeated calls for dialogue, no consensus has been reached, delaying progress. Officials warn that further delays could push back project completion and increase costs. The stalled construction poses a risk ahead of monsoon season, especially in landslide-prone areas like Jhyaple Khola, where past disasters have occurred.

Air Pollution Threatens Nepal’s Tourism Industry, Experts Warn:

Severe air pollution in Kathmandu Valley is raising alarm among tourism and environmental experts, who warn it is tarnishing Nepal’s image as a clean and beautiful destination. Despite brief relief from recent rainfall, the toxic air remains a serious concern for public health and tourism. At a discussion hosted by NEFEJ, Nepal Tourism Board CEO Deepak Raj Joshi stressed that environmental degradation is harming tourism, a major contributor to the green economy. Speakers called for urgent government intervention and joint efforts to curb pollution from forest fires, vehicle emissions, and industrial waste to safeguard Nepal’s tourism sector and global reputation.

Nepal’s Struggles with 5G Rollout: Financial Hurdles, Low Data Usage, and Lack of Infrastructure:

Despite completing successful 5G trials, Nepal has yet to launch the technology due to high deployment costs and financial struggles faced by telecom operators. Nepal Telecom, with an estimated Rs 70 billion cost for 5G launch, has expressed reluctance to proceed, citing declining revenues and the massive investment required. The country also lacks a strong ecosystem for 5G, including a limited OTT platform base and low mobile data usage. Experts recommend focusing on expanding 4G services and strengthening infrastructure before introducing 5G. Telecom leaders warn that without a robust user base, 5G rollout may not be viable.

IPPAN and Pioneer Law Associates Partner for Green Taxonomy Study on Hydropower Projects:

The Independent Power Producers’ Association, Nepal (IPPAN) and Pioneer Law Associates (PLA) have signed a Memorandum of Understanding for a policy study on green taxonomy specifically for hydropower projects. The study, which aims to explore green financing opportunities for generating 28,500 megawatts of electricity, will focus on guidelines for hydropower projects, climate financing, and carbon trading. A joint working committee will oversee the research, which is expected to be completed by August 2025, aiding government policy formulation on green financing.

Saurya Airlines Conducts Test Flight Eight Months After Suspension:

Saurya Airlines conducted a 45-minute test flight on Friday, eight months after its suspension following a crash en route to Pokhara. The CRJ-200ER aircraft, with registration number Alpha November Mike, flew over Kathmandu airspace only. The Civil Aviation Authority had granted limited flight permission for inspection. According to the airline, all technical standards have been met, and a formal report will be submitted within two weeks to lift the ban. The test was carried out by two pilots and three engineers.

Share-Backed Loans Surge by Rs 28.4 Billion in Seven Months:

By mid-March of the current fiscal year, banks in Nepal injected an additional Rs 28.4 billion into the stock market through share-backed loans, according to Nepal Rastra Bank. Total share mortgage lending reached Rs 118.5 billion, up 31.5% from Rs 90.09 billion last July. Loans above Rs 10 million saw a 41.5% rise. Other loan ranges also grew: 18.9% in the Rs 5–10 million bracket, 14% in Rs 2.5–5 million, and 11.4% in loans below Rs 2.5 million.

Lenient Monetary Policy Post-COVID Blamed for Nepal’s Economic Slowdown: Reform Panel:

A high-level reform commission led by ex-finance secretary Rameshore Khanal has blamed post-COVID loose monetary policy for Nepal’s ongoing economic slowdown. In a report to the finance minister, it said former NRB Governor Maha Prasad Adhikari’s policies caused credit to spike, fueling speculation in land and stock markets instead of production. The panel cited high imports, weak public spending, and unsustainable credit as key issues. It recommended better coordination between fiscal and monetary policies to stabilize the economy.

Indian Oil Producers Urge Curbs on Duty-Free Imports from Nepal:

Indian edible oil producers have raised alarm over the surge in duty-free refined soybean and palm oil imports from Nepal, citing harm to local farmers and industries. The Indian Vegetable Oil Producers’ Association urged the government to demand bank guarantees on SAFTA-based imports and enforce strict origin rules. They allege traders re-export oil via Nepal from countries like Malaysia and Argentina, bypassing tariffs. The association has called for tighter border checks, import quotas, and higher duties to protect India’s domestic industry and revenue.

Bhuvan Singh Gurung Elected President of Nepal Association of Foreign Employment Agencies:

Bhuvan Singh Gurung has been elected president of the Nepal Association of Foreign Employment Agencies. Representing the Democratic Foreign Employment Entrepreneurs’ Forum, aligned with the Nepali Congress, Gurung defeated his rival Naresh Gelal by 61 votes, securing 428 votes in total. Sujeet Kumar Shrestha won as first vice president, Dev Kumar Khokhali as second vice president, Mahesh Kumar Basnet as general secretary, Kuncha Dorje Dingdong as secretary, and Dhanu Sinjali as treasurer. Most executive committee members were also elected from Gurung’s panel.