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 economic news highlights:
Nearly NPR 10 billion Corruption Found in Pokhara Airport Project by Parliamentary Probe: A parliamentary subcommittee investigating the construction of Pokhara International Airport has concluded that around NPR 10 billion worth of irregularities and corruption occurred during the project. The subcommittee under the Public Accounts Committee has prepared a draft report citing irregularities under 11 different categories.
The draft, prepared under the leadership of Rastriya Prajatantra Party (RPP) chair Rajendra Lingden, has been circulated among some lawmakers for review. Some have already signed it while others have requested more time for study. According to a member of the subcommittee, tax exemptions were granted illegally — a matter already questioned earlier. The member further stated that the Pokhara airport irregularities constitute one of the biggest corruption scandals in the country. The Ministry of Finance did not provide all the requested documents, suggesting the actual corruption figure might be even higher.
NEPSE Index on the Rise, Shows Signs of Optimism: As the Nepali New Year 2082 begins, the country’s stock market has shown signs of renewed optimism. The NEPSE index has recorded gains for three consecutive trading days, boosting investor confidence and reflecting positive market sentiment at the start of the new year. This week, the NEPSE index rose by 19.34 points. Last week, the index had declined by 32.69 points to close at 2703.39. However, with this week’s rise, the index climbed to 2722.73.
The trading days were split across two Nepali years: the week began with the final trading day of 2081 and continued into 2082 on Baisakh 2. The stock market was open for four trading days this week. Out of those, the NEPSE index increased on three days and fell on only one. On the first trading day of the week, which was also the final day of 2081 (Sunday), the NEPSE dropped by 8.84 points. The remaining three days, however, witnessed upward movement in the index.
Executive Director of Nepal Rastra Bank, Dr. Gunakar Bhatta Resigns: Dr. Gunakar Bhatta has resigned from his post as Executive Director of Nepal Rastra Bank. He submitted his resignation on Friday. The governor’s seat at the central bank is currently vacant. It is understood that Bhatta tendered his resignation following confirmation of a new governor appointment.
Earlier, another Executive Director, Prakash Kumar Shrestha, had also resigned. The government had formed a recommendation committee three weeks ago to appoint a new governor. An agreement has reportedly been reached between the two ruling parties regarding the selection.
Writ Petition Filed in SC Against Dr. Gunakar Bhatta: A writ petition has been filed in the Supreme Court against Dr. Gunakar Bhatta, who resigned from the post of Executive Director of Nepal Rastra Bank. Advocates Pratibha Upreti and Bishal Thapa filed a petition in the Supreme Court on Friday, claiming that Bhatta is not qualified to be appointed as Governor.
According to the petitioners, the Supreme Court has already accepted the supplementary petition to be filed on Sunday. The petitioners have argued that the act is unlawful as it is founded solely on a political agreement between the parties, rather than on legal or constitutional grounds. Bhatta had resigned from the post of Executive Director only on Friday. Bhatta’s resignation has not been accepted. Earlier, on April 15, the Supreme Court had issued an interim order in a writ filed by advocates Upreti and Thapa, asking not to include people over the age of 65 in the appointment process.
Government Enforces New Aviation Regulation, Significantly Increases Airlines’ Paid-Up Capital: The paid-up capital requirements for airline operators in Nepal have been significantly raised following the enforcement of a new aviation management regulation. For the first time, the government has introduced the Air Service Management Regulation, 2081, aimed at streamlining and better regulating airline companies. The regulation, prepared by the Ministry of Culture, Tourism and Civil Aviation, was approved by the Cabinet last Tuesday and has now come into effect.
With this new regulation in place, two existing procedural guidelines have been repealed: the Procedure for Granting Licenses to Civil Aviation Institutions, 2066 and the Procedure for Granting International Air Service Permits to Private Sector Companies in Nepal, 2075. Until now, the ministry had been issuing licenses and collecting revenue from aviation-related institutions through these procedures. The Auditor General’s Office had also raised questions about revenue collection being conducted under procedural guidelines rather than formal regulation.
Foreign Grants to Nepal Rise Sevenfold Compared to Last Year: Nepal has witnessed a notable improvement in the inflow of foreign grants this fiscal year. According to data from the Office of the Auditor General, the country has received Rs. 14.4 billion in foreign grants so far in the current fiscal year. Although this figure represents only 27% of the government’s annual target of Rs. 52.32 billion, it marks a significant increase compared to the same period last year.
At this time last year, Nepal had received only Rs. 2.75 billion, meaning the current year’s grant receipts are seven times higher. Notably, on a single day—Chaitra 31 (April 12, 2025)—Nepal received Rs. 11.81 billion in grants. The data points to improved international assistance, although the country still falls short of meeting its target.
Licensing of New Stock Exchange Nears Final Phase: The process of awarding a license to a new stock exchange in Nepal—mired in controversy due to corporate rivalries and political scrutiny—has reached its final stage. Three applications were submitted by consortia backed by powerful business houses, sparking disputes from the outset. Concerns over potential multi-billion-rupee manipulation drew criticism from political leaders, who raised the issue from the streets to Parliament, further intensifying the debate.
Despite the swirling controversy, the licensing process was pushed forward by the Cabinet led by KP Sharma Oli. Following this, the Securities Board of Nepal (SEBON) took proactive steps, and the procedure is now in its final phase. SEBON sources indicate that sealed bids submitted by the competing groups are about to be opened and evaluated, paving the way for the long-awaited decision.
NEA Profits Rise by Over Rs. 4 billion in Nine Months: The Nepal Electricity Authority (NEA) has recorded a net profit of Rs. 13.62 billion in the first nine months of the current fiscal year, marking an increase of Rs. 4.14 billion compared to the same period last year. This performance follows last year’s record profit of Rs. 18.91 billion for the full fiscal year. NEA’s improved profitability is largely attributed to increased electricity sales both domestically and through exports to India.
NEA exported more than 1.3 billion units of electricity to India in the review period, while domestic consumption also rose due to industrial recovery. The rise in income has strengthened NEA’s financial health, reducing dependency on government subsidies and enabling reinvestment in hydropower and transmission infrastructure. Former Managing Director Kulman Ghising credited institutional reforms and power trade deals with India as key drivers of growth. NEA plans to continue expanding generation and cross-border trade in the next fiscal year.
Muglin–Pokhara Road Expansion Progresses Rapidly in Damauli Section: The Damauli stretch of the Muglin–Pokhara road expansion project is making swift progress with ongoing blacktopping works. The resurfacing is currently underway in Vyas Municipality Ward-2, covering areas from Baghbazar to Tarakari Line via the Main Chowk and Safa Sadak Chowk.
According to Engineer Bishnu Prasad Pandey from the Eastern Section of the Muglin–Pokhara Road Project, the target is to complete the blacktopping within the current fiscal year. One side of the Main Chowk was blacktopped on Thursday, and work in the Baghbazar section was completed a day earlier. Other areas, such as from Durgamandir to Chapaghat, are scheduled for blacktopping soon. Earlier delays in removing roadside structures had slowed progress, but now only 4 kilometers remain to be paved.
New Visa Interview Rules Announced by US Embassy in Nepal: The United States Embassy in Kathmandu has announced new rules for visa interviews starting from Baisakh 15 (April 28, 2025). All applicants are now required to bring the DS-160 visa application form with the confirmation barcode number for their interview. Additionally, the confirmation number and barcode used while scheduling the appointment online must match those on the DS-160 form.
If they do not match, the embassy has stated that the applicant will not be allowed to attend the visa interview. Applicants who fail to meet this requirement must book a new appointment to proceed with their visa application process. The embassy urges all applicants to ensure the consistency of their documentation to avoid delays.
Hetauda Cement Factory Restarts After Six-Month Shutdown: Hetauda Cement Factory has resumed operations after a six-month closure. The plant began preparing limestone for cement production last Tuesday after completing repairs on its machinery and securing raw materials. According to acting General Manager Navin Kumar Karna, cement production will commence in a couple of days with a target of producing 600 quintals daily.
He noted that the factory’s old machinery, installed in 1976 (2033 BS), needs to be replaced entirely. Karna emphasized the financial difficulties faced by the factory, including challenges in paying electricity bills and staff salaries. Due to these limitations, purchasing new equipment has been difficult, but he expressed hope that the government would step in to support the factory’s revival.
Kathmandu’s Ring Road to Undergo Widening to 10 Lanes: The Kathmandu Valley’s Ring Road is set for a major expansion. The Department of Roads has begun preparations to widen the Kalanki–Maharajgunj–Koteshwor section of the Ring Road to 10 lanes. This marks a shift from earlier plans, which only envisioned an 8-lane upgrade.The Department has already sent the revised proposal to the Ministry of Physical Infrastructure and Transport. Once approved, the plan will be forwarded to the Chinese government, which had previously expressed readiness to support the project. China had earlier widened the Kalanki–Koteshwor section to 8 lanes under grant assistance.
Chief of the Road Division Office, Shiva Prasad Nepal, said that the expansion will involve full road design, including service lanes and median strips. The project covers 14.34 kilometers and will link Kalanki, Maharajgunj, Chabahil, Tinkune, and Koteshwor, completing the full loop of the Ring Road. Land acquisition challenges and utility relocation remain concerns. However, with design revisions and diplomatic coordination ongoing, construction is expected to begin within a year.
Government Merges Land Revenue Offices in Kathmandu Valley: In a restructuring move, the Ministry of Land Management, Cooperatives, and Poverty Alleviation has begun merging multiple Land Revenue Offices within Kathmandu Valley. The goal is to streamline services and reduce duplication. The merger process, approved by the Council of Ministers, has already been initiated in Kathmandu and Bhaktapur. In Kathmandu, Land Revenue Offices in Dillibazar, Kalanki, and Chabahil are being consolidated. In Bhaktapur, offices in Suryabinayak and Bhaktapur Durbar Square are being merged.
The ministry claims this will improve service delivery and curb corruption by limiting jurisdictional overlap. However, employees have raised concerns about increased workload and logistical issues during the transition. The government aims to gradually merge more land-related offices across the country to promote a one-stop digital land governance system. The reform is part of a broader digitization and efficiency initiative, supported by multilateral development agencies.
Kathmandu Metropolitan City Seals Illegal Petrol Pumps in Residential Zones: The Kathmandu Metropolitan City (KMC) has started sealing petrol pumps operating illegally in residential areas. Acting on complaints from the public and following fire safety concerns, KMC on Thursday sealed a pump in the Kalanki area that lacked proper permits and was in close proximity to homes. KMC officials said the move follows the Local Government Operation Act and urban planning regulations that prohibit high-risk facilities in densely populated neighborhoods.
The city had previously served a 35-day notice to several such operators to relocate or face action. There are over 30 petrol pumps in Kathmandu, many of which were set up years ago without proper planning. Some are within 50 meters of schools, hospitals, and residential blocks, violating safety norms. The move is part of a broader campaign by KMC to enforce zoning laws, improve fire safety, and minimize public risk. More closures are expected in the coming weeks.
New Budget to Prioritize Infrastructure, Education, and Domestic Industry: As the new fiscal year approaches, the Ministry of Finance has begun finalizing the national budget with a focus on infrastructure development, public education reform, and support for domestic industries. According to officials, the budget will allocate higher resources to complete under-construction roads, bridges, and hydropower projects. The government also plans to increase funding for public schools, particularly for teacher salaries and digital learning tools.
Another major component will be import substitution, with new subsidies and tax breaks for local producers of goods like cement, iron, and agricultural products. The Finance Ministry aims to revive industrial growth and job creation through domestic production. The budget will also continue to fund social security programs such as senior citizen allowances, though fiscal pressures may limit new expansions. The ministry faces a challenging task of balancing growing expenditure with lower-than-expected revenue collection.
Over 5,000 Industries Shut Down in Karnali Province Due to Inactivity: More than 5,000 industries have been deregistered across the ten districts of Karnali Province after failing to operate despite being officially registered. According to Devilal Sapkota, head of the Directorate of Industry and Consumer Rights Protection in Surkhet, a total of 5,363 industries have been canceled. Dailekh tops the list with the highest number of closures, accounting for 1,675 industries.
Surkhet follows as the second-highest with 1,455 industries deregistered. Other districts with notable figures include Jumla with 587, Kalikot with 478, Salyan with 502, Jajarkot with 427, Dolpa with 51, Mugu with 21, Rukum West with 158, and Humla with just 9 closures. Out of the 43,678 industries registered in Karnali Province, Surkhet had the highest number, with 14,265 registered businesses, according to data from the directorate.
BYD Dolphin Mini Wins 2024 World Urban Car of the Year Award: The BYD Seagull, also known as the Dolphin Mini, has won the title of World Urban Car of the Year at the prestigious World Car Awards. The award was announced on April 16 at the New York International Auto Show. Competing against 11 top vehicles from around the globe, BYD became the first Chinese automotive brand to win in this category.
According to the company’s press release, the victory affirms BYD’s leading position in the global new energy vehicle (NEV) sector. The BYD Seagull features the “Ocean Aesthetics” design concept, offering a fresh, attractive, and modern look. Its high safety standards, smart driving features, and city-friendly performance have made it a bestseller in major markets.
Sanvi Energy Opens IPO for Project-Affected Locals and Migrant Workers: Sanvi Energy has opened its Initial Public Offering (IPO) for project-affected locals and Nepali citizens working abroad starting today. The IPO will be made available to the general public only after this initial round is completed.
Project-affected locals can apply for shares by Baisakh 19, and if not fully subscribed, the deadline extends to Jestha 3. Similarly, migrant workers must submit their applications by Baisakh 19. The company has allocated a total of 3.79 million shares for the general public at a face value of NPR 100 each. Investors can apply for a minimum of 10 shares and up to a maximum of 20,000 shares.
Gold Price Drops After Hitting Record High: After reaching a record high the previous day, the price of gold declined on Friday. Compared to the previous day, the price fell by NPR 800 per tola.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the new rate for gold today is NPR 189,800 per tola. On the previous day, the price had reached NPR 190,600. Meanwhile, the price of silver remains stable at NPR 1,960 per tola.
