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:

Gold Hits New Record High of Rs 186,800 Per Tola:

The price of gold in the Nepali market has once again set a new record today (Sunday). Gold prices have been breaking records continuously since Thursday. On Friday, the price of gold surged by Rs 3,900 per tola, reaching its highest level in history. On that day, gold was traded at Rs 185,000 per tola.

According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of gold today has reached Rs 186,800 per tola. This is Rs 1,000 higher than the previous record.

NEPSE Ends Lower on Last Trading Day of 2081 B.S.:

The share market closed lower on the final trading day of the year 2081 B.S. On Sunday, the Nepal Stock Exchange (NEPSE) index declined by 8.84 points. After fluctuating throughout the trading session, the index finally settled at 2,661.86 points by the end of the day.

According to NEPSE, the total trading volume on the day stood at Rs 6.28 billion, with 13.19 million shares changing hands. Except for the Hotels & Tourism, Investment, Mutual Fund, and Non-life Insurance sub-indices, all other sectoral indices witnessed a decline. Despite the overall market drop, Nepal Micro Insurance Company hit the upper circuit limit, while Vin Nepal Laghubitta hit the lower circuit limit.

FNCCI President Urges Government to Draft Budget Based on Economic Reform Commission’s Recommendations:

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has urged the government to prepare the upcoming budget in line with the recommendations of the High-Level Commission on Economic Reform.

Speaking at a budget and revenue policy interaction program organized by the Ministry of Finance and the Revenue Advisory Committee in Rupandehi, Dhakal stated that following the commission’s suggestions would help address various economic issues. He emphasized that the budget should focus on the people, meet current needs, and prioritize increasing production and employment. He also criticized the government’s tendency to prioritize revenue collection alone, saying that this has sidelined critical issues such as job creation, boosting domestic production, and import substitution.

NRB to Withdraw Rs 30 billion from Market Today:

Nepal Rastra Bank is set to withdraw Rs 30 billion from the market today, Sunday. The central bank stated that it will be using the deposit collection instrument to withdraw the amount for a period of 21 days in order to manage excess liquidity. Nepal Rastra Bank has been regularly withdrawing money from the market every Sunday and Wednesday. In continuation of this routine, the bank plans to withdraw Rs 30 billion today as well.

According to the notice issued by the central bank, banks and financial institutions interested in participating in the deposit collection process can submit their online bids by 3 PM today. The Rastra Bank mentioned that bids can be placed in such a way that the amount is divided into units of at least Rs 100 million and up to Rs 500 million, ensuring there is no residual amount left.

NRB to Invest Rs 970 million in Fixed Deposits of Banks and Financial Institutions:

Nepal Rastra Bank has decided to invest Rs 970 million in fixed deposits across various banks and financial institutions. Issuing a notice on Sunday, the central bank announced that the amount—belonging to its grant and pension fund—will be deposited in commercial banks, development banks, and finance companies. According to the central bank, the funds will be invested in fixed deposits in Class ‘A’ commercial banks, nationally operating Class ‘B’ development banks, and nationally operating Class ‘C’ finance companies. Out of the total amount, Rs 776 million will be invested in commercial banks, Rs 145.5 million in development banks, and Rs 48.5 million in finance companies.

Bad Weather Forces Diversion of 7 Flights Bound for Kathmandu:

Due to deteriorating weather conditions, seven flights headed to Kathmandu have been diverted. According to Tribhuvan International Airport (TIA), three international flights en route to Kathmandu were diverted to India.

TIA spokesperson Rinji Sherpa stated that a Fly Dubai flight from Dubai was diverted to Kolkata, while an Air India flight from Delhi and an Air Arabia flight from Sharjah were diverted to Varanasi. Among domestic flights, both Buddha Air and Yeti Airlines flights from Biratnagar had to return to Biratnagar. Similarly, a Yeti Airlines flight from Pokhara was diverted back to Pokhara, while a Buddha Air flight that had departed Kathmandu for Simara also had to divert.

Government Makes MRP Mandatory on Cement and Iron Rods from Baisakh 1:

The government has made it mandatory to implement Maximum Retail Price (MRP) on cement and iron rods (rebars) starting from Baisakh 1, 2082 (April 14, 2025). The Department of Commerce, Supplies and Consumer Protection has issued a directive requiring cement and rebar products to carry MRP labels. The department held discussions with cement and rebar manufacturers before issuing the directive.

The Department of Commerce, Supplies and Consumer Protection had issued a notice on Chaitra 14 (March 27), directing that MRP (Maximum Retail Price) be applied to all goods by Chaitra 20 (April 2). However, cement and rebar producers had initially resisted implementing MRP on their products. During a discussion held at the department on Chaitra 20 (April 2) regarding the MRP enforcement, no concrete agreement was reached, and the industrialists walked out of the meeting without consensus.

Most Banks Keep Interest Rates Unchanged for Baisakh, Minor Adjustments by Few:

For the month of Baisakh, most commercial banks in Nepal have kept their interest rates unchanged. Out of 20 commercial banks, 16 have decided to maintain the same rates as the previous month. Among the remaining, three banks have slightly reduced their interest rates compared to Chaitra, while one bank has marginally increased them. With no significant change in loan demand, banks have largely kept interest rates stable for the past five months.
Despite base rates reaching their lower limits, the lack of improvement in credit flow has led banks to maintain stable rates for both deposits and loans. Kumari Bank, Sanima Bank, and Nepal Bank have reduced personal deposit rates by 0.1%, 0.9%, and 0.35% respectively, while Everest Bank has increased its rate by 0.61% compared to Chaitra. The other 16 commercial banks have decided to continue with the same rates in Baisakh as in the previous month.

Writ Filed in Supreme Court Against Age Limit Amendment for Governor Appointment:

A writ petition has been filed at the Supreme Court challenging the government’s recent amendment to the eligibility criteria that also applies to the appointment of the Governor of Nepal Rastra Bank. The petition, filed on Sunday by advocates Prativa Upreti and Bishal Thapa, is scheduled for a hearing on Tuesday.

The writ demands that the amendment be annulled, arguing that the removal of the 65-year age limit was done to favor certain former bureaucrats who are potential candidates for the governor post. On Falgun 27, the government had removed Clause 3(g) of the “Standards for Appointment and Nomination of Officials and Members of Public Institutions under the Ministry of Finance, 2073,” which previously required executive-level appointees to be between 30 and 65 years of age, and non-executive members to be between 35 and 65.

Hydropower Developers Urge PM Oli to Rectify PAC Decision:

Hydropower developers have met with Prime Minister KP Sharma Oli, requesting a revision of the Public Accounts Committee’s decision, which they claim has stalled capital expansion plans of 53 companies.

The Independent Power Producers’ Association, Nepal (IPPAN), met with the Prime Minister on Sunday and urged him to create a conducive environment for hydropower companies to issue shares. Citing the directive issued by the Public Accounts Committee to the Securities Board of Nepal (SEBON), IPPAN representatives said that SEBON has not approved Initial Public Offerings (IPOs) or rights share issuance for the 53 hydropower companies over the past 20 months.

Rupandehi Industrialists Urge Government to Focus on Production:

Industrialists and entrepreneurs from Rupandehi have expressed concern that the government has been prioritizing revenue collection over production and employment. They stated that each year, the private sector grows apprehensive about the budget, fearing what kind of tax-heavy policies the Finance Minister might introduce. They emphasized that if the government focuses on production and export-oriented industries while framing the budget, both revenue collection and employment generation would increase simultaneously.

During a budget and revenue policy consultation organized by the Ministry of Finance in Rupandehi for the upcoming fiscal year 2082/83, local industrialists suggested the inclusion of more production-oriented programs rather than revenue-centric ones. They further recommended expanding the tax base, giving priority to production and export-oriented industries, and addressing issues related to excise duties, customs policy, trunk line access, and insurance mechanisms.

Clash Erupts as Government Moves to Resume Nagdhunga-Sisnekhola Tunnel Project:

A clash broke out between the police and protesters on Sunday morning as the government attempted to resume construction work on the Nagdhunga-Sisnekhola tunnel project. Local residents, who had put forward an eight-point demand, had completely halted the project from Chaitra 3.

In response to the disruption caused by the protesters, the government deployed a large number of security personnel to the site on Sunday in an attempt to resume work. As security forces were stationed at the entrance to the tunnel project, a violent confrontation occurred between the protesters and the police at 9 a.m. on Sunday.
Sugar Mills Clear Dues to Farmers, but Government Subsidy Remains Uncertain: Although sugar mills have paid sugarcane farmers on time this year, the government’s promised subsidy remains uncertain. On Mangsir 13, the Cabinet had fixed the price of sugarcane at NPR 655 per quintal. Of this, NPR 585 was to be paid by sugar mills and the remaining NPR 70 was to be covered by the government as a subsidy.

Most sugar mills, which have already concluded this season’s crushing operations, have cleared their payments to the farmers. However, the NPR 70 subsidy per quintal promised by the government is still in limbo, according to Kapilmani Mainali, President of the Nepal Sugarcane Producers Association. Mainali lamented that although competition among mills to secure sugarcane — due to declining cultivation — prompted timely payment to farmers, the government continues to delay the subsidy, repeating its past behavior.

Nine Arrested for Alleged Fraud of Over NPR 268 million at Kanti Bhairab Savings and Credit Cooperative:

The management of Kanti Bhairab Savings and Credit Cooperative, located in Gokarneshwar Municipality-4, Kathmandu, is accused of embezzling a total of NPR 268 million.

Nine individuals have been arrested in connection with the fraud, according to the police. Those arrested include the cooperative’s chairman Hari Krishna Shrestha, former chairman and advisor Prem Shrestha, treasurer Serlal Shrestha, deputy manager Rajendra Shrestha, and vice chairman Rameshwar Shrestha. Additionally, the cooperative’s secretary and manager Ramdash Shrestha, member Anirudra Shrestha, and audit committee coordinator Chandraprasad Paudel have also been apprehended.

Industrialists in Birgunj Express Concern Over Unannounced Load Shedding and Power Cuts:

The Birgunj Chamber of Commerce and Industry has expressed serious concern over the unannounced load shedding and unscheduled power cuts being implemented by the Nepal Electricity Authority (NEA) in the Birgunj-Pathlaiya Industrial Corridor. The industries in the corridor, which rely heavily on electricity as an essential resource, have been operating at much lower capacities due to the irregular supply of power.

The industrialists, businessmen, and the general public, who were initially encouraged by the NEA’s declaration of the “Load-Shedding-Free Industrial Zone” and the “Bright Nepal” campaign about six years ago, are now facing increased power cuts, lack of quality power supply, and deterioration of industrial equipment and raw materials. The Chamber has raised concerns that the power shortage is adversely affecting the production process and business operations.

Commercial Banks Revise Interest Rates for New Year 2082, Most Maintain Previous Rates:

For the Nepali New Year 2082, commercial banks have announced new deposit interest rates, with most continuing previous rates and only three—Sanima Bank, Kumari Bank, and Nepal Bank—reducing rates on long-term fixed deposits. Nepal Bank now offers 5.15% on one-year fixed deposits. Other banks offer rates between 5.5% and 6.25%. Savings deposit rates remain between 3% and 3.5%, aligned with Nepal Rastra Bank’s 3% base collection rate. Due to excess liquidity and low credit demand, banks have over Rs 700 billion in investable funds and Rs 250 billion in excess liquidity, prompting continuous reductions in deposit and lending rates.

Banking Sector Faces Continued Struggles in Third Quarter Despite Signs of Economic Recovery:

Nepal’s banking sector remained under pressure in the third quarter of FY 2081, with bankers reporting no significant improvement over the previous quarter. Despite slight recovery in foreign trade and revenue, loan recovery—especially in agriculture and MSME sectors—remains a major challenge. Issues persist due to government payment delays and sluggish real estate markets. Some banks may benefit from recent NRB circulars, particularly those invested in construction, but overall financial health remains weak. Merged banks face heightened difficulties, and non-performing loans continue to rise. While some CEOs see gradual recovery, expectations of major improvements remain low across the industry.

Former King Gyanendra Warns of Crisis Amid Capital Flight, Corruption, and Social Discord:

In a New Year’s video message, former King Gyanendra Shah expressed deep concern over Nepal’s worsening state, citing uncontrollable levels of capital flight, corruption, and systemic disorder alongside rising emigration. He stressed the urgent need for national unity and collective effort to achieve progress. Urging citizens to avoid polarization and internal conflict, Shah emphasized that Nepal’s future lies in Nepali unity. He also highlighted issues like economic decline, weakened industrial output, increasing national debt, unemployment, eroding national identity, and rising public frustration as key concerns threatening the country’s stability and prosperity.