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:
NEPSE Index Sees Modest Decline: Today, the NEPSE index fell by 7.75 points to settle at 2,698.28. According to the NEPSE, 21.12 million 3,766 shares of 319 different companies were bought and sold 78,678 times, generating a turnover of Rs 8.77 billion 5,720,293, according to NEPSE. In today’s trading, the development bank group increased by 0.43 percent, hotels and tourism by 0.06 percent, hydropower by 0.77 percent, investment by 0.17 percent, production and processing by 0.03 percent and mutual funds by 0.44 percent.
All other sub-indices decreased. Banking 0.85, Finance 1.03, Life Insurance 0.16, Microfinance 0.11, Non-Life Insurance 0.15, Trade 1.52 and other groups decreased by 1 percent.Nepal Microinsurance Company Limited and Crest Microlife Insurance Company Limited saw the highest increase in share prices today by 9.99 percent. The share price of NMB Hybrid Fund-2 was the highest decrease by 7.90 percent.
SC Defers Hearing on Governor Appointment Criteria Again: The Supreme Court on Monday once again failed to conduct a hearing on a writ petition demanding a halt to the implementation of revised criteria for the appointment of Nepal Rastra Bank’s governor. The case, scheduled for hearing before a joint bench of Justices Mahesh Sharma Poudel and Nripadhwaj Niraula, was deferred under the category of “not heard due to time constraints”.
The government had amended the criteria for governor appointment, allowing individuals above the age of 65 to be eligible for the position—an age limit that was previously disqualifying. Challenging this amendment, advocate Bishal Thapa and others filed a writ petition at the Supreme Court. In response, a single bench of Justice Nityananda Pandey had issued a short-term interim order to not implement the revised criteria until further notice.
NPC Advises Budget Cuts in Ailing Projects Amid Funding Shortfall: The National Planning Commission (NPC) has submitted a report to the Ministry of Finance recommending significant cuts in sick and problematic projects due to a possible shortage of financial resources for the upcoming fiscal year 2082/83. On Sunday, while submitting a report on policy and programmatic discussions related to the budget formulation for the next fiscal year, the Commission suggested budget cuts for underperforming projects, stating that even mandatory obligation sectors might face resource pressures.
“There is little likelihood of significant improvements in revenue mobilization in the upcoming fiscal year. The inflow of foreign grants has been declining in recent years, and foreign loans are not being mobilized as per commitments,” the report notes. “As a result, overall financial resources have become limited, requiring proper management.”
Indian Power Minister Khattar to Visit Nepal for Arun-3 Project: India’s Minister of Power and Urban Affairs, Manohar Lal Khattar, is set to visit Nepal on Tuesday to inspect the Arun-3 hydropower project. The project is being developed by SJVN Arun-3 Power Development Company (SAPDC), a subsidiary of the Indian company Satluj Jal Vidyut Nigam (SJVN). Minister Khattar will return to India on Wednesday after his visit.
Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, will also join the inspection. SJVN Chairperson Rajkumar Chaudhary and CEO Prashant Sharma will be in attendance.
Mobile Wallet Transactions Cross NPR 300 billion in Nepal: Mobile wallet transactions in Nepal have surpassed NPR 300 billion. According to data published by Nepal Rastra Bank, wallet transactions reached NPR 326.19 billion in the first eight months (Shrawan to Falgun) of the current fiscal year.
This figure has already exceeded the total wallet transactions of the previous fiscal year 2080/81, which stood at NPR 302 billion. In comparison, in 2079/80, wallet transactions totaled only NPR 219 billion. Five years ago, the total annual wallet transaction was merely NPR 76 billion, highlighting the rapid growth of digital payments in Nepal.
Sluggish Economy Reflected in Banks’ Third Quarter Reports: The effects of a sluggish economy are clearly visible in the third-quarter financial statements of banks and financial institutions. Experts say this is evident through declining profits of most banks and financial institutions, stagnation in loan expansion, rising non-performing loans (NPLs), declining net interest income, and reduced return on equity (ROE). According to the third-quarter reports published by 20 commercial banks on Sunday, the average NPL stood at 4.83%.
Compared to the second quarter of the current fiscal year 2081/82 and the third quarter of the previous fiscal year, NPLs have slightly increased. By the end of the month of Poush (mid-January), the average NPL across banks was 4.49%, whereas during the third quarter of the previous fiscal year it was 3.65%.
Most C-Class Finance Companies Report Profit in Q3; Sector Bounces Back: All 15 C-class financial institutions currently operating in Nepal have published their third-quarter financial statements for the ongoing fiscal year. The data reveals that while five finance companies remain in the red, the majority—ten firms—have returned to profitability by the end of Chaitra (mid-April). This marks a significant improvement compared to the same period last year when eight finance companies were operating at a loss.
In aggregate, the sector has shown notable recovery. The combined net profit of all 15 finance companies stands at Rs 175.8 million this fiscal year. This is a stark turnaround from the third quarter of last year, when the sector reported negative net earnings of Rs 370 million. Several companies that were previously reporting losses—such as Progressive Finance, Pokhara Finance, Guheshwori Finance, Central Finance, and Goodwill Finance—have now posted profits.
Daily Trade Deficit Reaches Rs 4.15 billion Despite Export Improvements: Despite some improvements in export trade, Nepal’s daily trade deficit has surged to NPR 4.15 billion. Experts say the growing import of goods that could be produced domestically has worsened the trade deficit. According to foreign trade statistics published by the Department of Customs on Sunday, the trade deficit in the first nine months of the current fiscal year has reached NPR 1.121 trillion
This translates to a monthly trade deficit of NPR 124.59 billion and a daily deficit of NPR 4.15 billion — a 6.45% increase compared to the same period last fiscal year. In the first nine months of the last fiscal year, the trade deficit stood at NPR 1.053 trillion with a daily deficit of NPR 3.9 billion. The significant rise in the trade deficit this year indicates worsening external balance despite minor export gains.
Department of Commerce Urges 28 Firms to Import Wheat from India Within 15 Days: The Department of Commerce, Supplies, and Consumer Protection has urged 28 firms or companies that have received import permits under the wheat quota allocated by India to proceed with procurement as soon as possible. The department has requested these firms to complete the wheat purchase within a maximum of 15 days.
According to the department, out of the 41 business firms shortlisted for wheat procurement, 31 had submitted applications. Among them, 28 firms fulfilled the required documentation as per departmental regulations and were granted import permits. Director General of the Department, Kumar Dahal, stated that the firms which received permits have been formally requested to procure wheat within the designated timeframe. He also informed that each of the 28 approved firms has been authorized to import 3,000 metric tons of wheat.
NRB Fines and Dismisses Former Nepal Bank Chair Amid Bribery Probe: While an investigation by the Commission for the Investigation of Abuse of Authority (CIAA) is underway over bribery allegations tied to loan disbursements, Nepal Rastra Bank has taken action against Dr. Chandra Bahadur Adhikari, former Chairman of Nepal Bank. Citing violations under the Bank and Financial Institutions Act, 2073 BS, the central bank has fined Adhikari Rs 500,000 and dismissed him from his post as a board director. A formal notice has already been sent to Nepal Bank.
Although Adhikari had earlier been removed from the chairman position by the bank’s board of directors, he had continued to serve as an independent director. The central bank’s latest move effectively ends his role entirely. Nepal Rastra Bank determined that Adhikari’s conduct was inappropriate for someone in his position and warranted dismissal from the board.
Indian Investors to Fund Solar Power in Banke’s Narainapur: In Narainapur Rural Municipality of Banke — an area with the least electricity access in the district — Indian investors have stepped forward to initiate a solar power project. According to Rural Municipality Chairperson Istiyak Ahmad Shah, after detailed discussions, the Indian investors expressed their intent to initially invest in a 10-megawatt solar power plant.
Participants in the discussion included Chairperson Shah, former Lumbini Province Minister Krishna KC, Khajura-2 Ward Chair Dhaniram Oli, solar energy expert Bharat Bishwakarma, and Narainepur spokesperson Alam Khan.
122 Taxpayers Face Legal Action for Failing to Pay Dues: The Inland Revenue Office in Makwanpur, Hetauda has initiated legal action against 122 taxpayers who have failed to pay taxes for an extended period, despite being officially registered. According to Chief Tax Officer Yukta Prasad Subedi, the office has prepared a list of non-compliant taxpayers and begun the process of freezing their bank accounts, halting import-export activities, and blocking transactions involving their assets.
“These taxpayers were repeatedly asked—both verbally and through written communication—to clear their dues, but they kept delaying,” said Subedi. “As a result, we have moved forward with legal steps to block their bank accounts, properties, and business operations.” The office has revealed that these taxpayers collectively owe more than Rs 600 million in back taxes. Subedi added that the initiation of legal measures has prompted some defaulters to come forward and settle their dues.
Trade Tower Limited Launches IPO for Nepalis Abroad: Trade Tower Limited has opened the issuance and sale of its Initial Public Offering (IPO) from Monday. The company is issuing IPO shares specifically for Nepalis working abroad. Of the company’s total capital of NPR 815.6 million, it has received permission to issue 48.696% — or NPR 397.16 million worth of shares (3,971,693 shares at a face value of NPR 100 each).
In the first phase, the company plans to issue NPR 39.716 million worth of shares (397,169.30 units) to Nepalis who have obtained labor approval from the Nepali government for foreign employment.
Bhairahawa Inland Revenue Office Collects Rs 8.47 billion in 9 Months: The Inland Revenue Office in Bhairahawa has collected NPR 8.47 billion in revenue during the first nine months of the current fiscal year. This marks an increase of NPR 1.32 billion compared to the same period last year. Revenue collection this year is up by 18.3% compared to the review period of the previous fiscal year.
Improvements in key economic indicators, increased economic activities, regular and effective market monitoring, intensified recovery of dues, improved tax audits and investigations, outcome-oriented taxpayer education, and investigations into the issuance of fake VAT invoices. In the same nine-month period last year, the office had collected NPR 7.17 billion in revenue attributed this growth.
Nepal Infrastructure Bank’s Profit Drops by Over 8%: Nepal Infrastructure Bank (NIFRA) recorded a net profit of NPR 900 million in the third quarter of the current fiscal year 2081/82, a decline of 8.16% compared to NPR 980 million during the same period last year. The bank’s net interest income also declined by 24%, falling to NPR 1.48 billion from last year’s NPR 1.95 billion.
The bank’s non-performing loan (NPL) ratio stands at 0.21%. Earnings per share (EPS) are NPR 5.56, net worth per share is NPR 117.81, and the price-to-earnings ratio is 49.
Hotel Sarathi to Issue IPO Worth NPR 150 million: Hotel Sarathi Pvt. Ltd. is set to issue ordinary shares (IPO). The company has appointed Citizens Capital as its issue manager. In an event held in Dhulikhel, the hotel’s Executive Chairperson Pralhad Poudel and Citizens Capital CEO Sabir Bade Shrestha signed the agreement. The company plans to issue 1.5 million shares equivalent to NPR 150 million, representing 30% of its issued capital.
Post-IPO, the company’s paid-up capital will reach NPR 500 million. Hotel Sarathi aims to be listed within fiscal year 2082/83, providing investors with an opportunity to invest in the tourism and hospitality sector.
Kumari and Himalayan Banks Fall Below Required Capital Threshold: Two commercial banks — Kumari Bank and Himalayan Bank — have failed to maintain their Tier-1 capital (core capital) as mandated by Nepal Rastra Bank. According to the Capital Adequacy Framework, banks are required to maintain a minimum Tier-1 capital of 8.5% (6% core capital + 2.5% capital conservation buffer). However, financial reports until the end of Chaitra show that Kumari Bank’s core capital stands at only 7.31% and Himalayan Bank’s at 8%.
Due to this shortfall, both banks are currently ineligible to extend new loans. Although other banks like Machhapuchchhre, Citizens, and Prabhu Bank have capital ratios above the threshold, their Tier-1 capital remains below 9%, indicating tight financial conditions.
DDC Opens First Partnership Outlet in Madhesh Province: The Dairy Development Corporation (DDC) has launched its first partnership outlet in Madhesh Province. Aimed at making quality dairy products accessible to consumers, the new outlet was opened in Lalbandi Municipality-7, Sarlahi, in collaboration with Laxmi Enterprises. Madhesh Province Assembly member Bechi Lungeli inaugurated the store on Sunday morning.
According to Dinesh Kumar Joshi, project chief of DDC’s Dalkebar Milk Distribution Project, Laxmi Enterprises has been appointed as the distributor. DDC has also provided two refrigerators to support the store’s operations.
Gold Hits New Record High in Nepal: Gold prices in Nepal hit an all-time high on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold traded at NPR 191,000 per tola today, setting a new record. This marks an increase of NPR 1,200 compared to the previous day when gold was traded at NPR 189,800 per tola.
Previously, the highest price for gold was recorded at NPR 190,600 per tola on Thursday. Meanwhile, the price of silver remains stable at NPR 1,960 per tola.
