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 Falls by Nearly 10 Points, Trading Volume Declines: The Nepal Stock Exchange (NEPSE) index closed lower on Tuesday, dropping by 9.96 points to settle at 2,688.32. The Sensitive Index also declined by 3.91 points, while the Float Index fell by 0.86 points, and the Sensitive Float Index by 1.29 points.
A total of 319 companies were traded during the day, with 22.55 million shares changing hands, amounting to a total transaction value of NPR 8.32 billion. Compared to Monday’s trading volume of NPR 8.77 billion, the overall turnover also declined, signaling a decrease in investor activity alongside the market index drop.
Indian Minister Manohar Lal Khattar Visits Arun-III Hydropower Project: Indian Minister for Power and Housing Affairs, Manohar Lal Khattar, who is currently on a visit to Nepal, inspected the Arun-III Hydropower Project on Tuesday. He arrived in Kathmandu earlier in the day and jointly visited the project site along with Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka.
The Arun-III project, which has a total capacity of 900 megawatts, is being constructed by India’s SJVN (formerly Sutlej Jal Vidyut Nigam). According to the Indian Embassy in Nepal, the two ministers reviewed the progress of the project during the visit and also discussed ways to resolve existing obstacles affecting its implementation.
Ordinance Misinterpreted as Favoring Giribandhu Tea Estate, Says Minister Adhikari: Land Management Minister Balram Adhikari stated that the pending land ordinance was wrongly interpreted as being tailored to benefit Giribandhu Tea Estate. He clarified there is no connection between the ordinance and the estate.
Despite House of Representatives’ approval, the ordinance has stalled in the National Assembly due to controversy. The minister also announced that committees have been formed to rewrite the 2019 Land Survey Act and the 2021 Land Act.
Nearly 800,000 Workers Obtained Labor Permits for Foreign Employment in the Past Year: According to the Department of Foreign Employment, a total of 794,845 individuals received labor permits and went abroad for foreign employment from Baisakh to Chaitra 2081 B.S. (April 2024 to March 2025). In comparison, during the previous year—from Chaitra to Baisakh (March 2023 to April 2024)—711,423 individuals had obtained labor permits to work abroad. This marks an increase of 83,422 people in 2081 B.S. compared to 2080 B.S.
Data from the department also reveals that from Chaitra 2079 to Baisakh 2080 (March–April 2023), 773,242 people had gone abroad with labor permits. These statistics confirm that the number of Nepali workers going abroad for employment has increased over the past two years.
Supreme Court Orders Unfreezing of Durga Prasai-Linked Hospital Bank Accounts: The Supreme Court has issued an interim order to unfreeze bank accounts linked to businessman Durga Prasai’s two hospitals. Following a royalist protest in Tinkune on Chaitra 15, 2081 B.S. (March 28) that turned violent, Prasai—identified as a commander of the protest—was arrested, and both his personal and hospital accounts were frozen by police.
In response, Dr. Anjali Karki, the Operations Director of B & C Medical College Teaching Hospital and Research Center Pvt. Ltd., and Purwanchal Cancer Hospital Pvt. Ltd., filed two separate writ petitions. A single bench of Justice Hari Prasad Phuyal heard the case and issued an order to unfreeze the accounts.
Governor Recommendation Committee Member Bhattarai Resigns: Bijayanath Bhattarai, a member of the committee formed to recommend a new Governor of Nepal Rastra Bank, has resigned. The committee—formed on March 24 and headed by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel—also includes former Vice-Chairman of the National Planning Commission Prof. Dr. Bishwanath Paudel and former NRB Governor Bhattarai.
Though Bhattarai’s resignation has been confirmed, the reason remains unclear. The committee has not held a single meeting since its formation. According to the NRB Act, individuals affiliated with political parties are ineligible for the position, although past appointments have often ignored this provision.
Over Rs 5 billion Unspent Budget Surrendered by Ministries in Current Fiscal Year: The Ministry of Finance has reported that Rs 5.09 billion allocated in the current fiscal year (2081/82) was surrendered due to failure to utilize the funds by the end of Falgun (mid-March). As per the Financial Procedure and Fiscal Accountability Act, unspent funds must be surrendered by mid-Chaitra (March-end).
According to Finance Ministry spokesperson Shyam Prasad Bhandari, the law mandates the return of unutilized budget amounts. The surrendered funds will now be reallocated to projects with better progress. Among those surrendering funds, the Millennium Challenge Account (MCA) Nepal returned Rs 2 billion out of its Rs 13.36 billion budget. Likewise, the Ministry of Energy, Water Resources and Irrigation surrendered Rs 2.35 billion.
Government to Raise Rs 25.25 billion in Internal Debt via Treasury Bills: The government is set to raise Rs 25.25 billion through Treasury bills on Tuesday. According to the Public Debt Management Office, Rs 20.25 billion will be used to renew maturing Treasury bills, while Rs 5 billion will be newly issued.
The auction was held Monday afternoon, with distribution scheduled for today. The government has previously raised internal debt through Treasury bills, development bonds, citizen savings bonds, and foreign currency bonds.
Industries Still Struggling to Recover from COVID-19 Setback: Many industries shut down during the COVID-19 pandemic continue to struggle. Though some have resumed operations, a large number are yet to return to normalcy, according to experts. Trilochan Kandel, Senior Vice-President of the Federation of Nepalese Chambers of Commerce and Industry, Bagmati Province, said that 40% of industries in the province remain closed. Of those operating, only 10% are generating profits.
A former president of the Chitwan Chamber of Commerce, Kandel added that many industries are only operating to service bank loans. “Due to increasing debt, the collateral no longer suffices for further loans, creating problems for both the industries and the banks. Although production has resumed, demand has not picked up,” he said.
NRB Initiates International Audit of 10 Major Banks: Nepal Rastra Bank has begun the process of conducting international audits of 10 major banks. This move follows a commitment made to the International Monetary Fund (IMF) to independently assess the actual status of these financial institutions.
Nepali banks have often been accused of publishing unrealistic data about their asset quality. This concern was raised by the IMF during negotiations for the Extended Credit Facility (ECF), which required independent asset quality reviews. Thirteen months ago, the central bank began the process of hiring foreign auditors to conduct the audits, fulfilling one of the IMF’s key conditions for financial transparency.
Nepal Government Holds Rs 11.52 billion Worth of Institutional Shares in Foreign Agencies: The Government of Nepal has invested Rs 11.52 billion in institutional shares of various international and regional financial institutions. According to the Public Debt Management Office under the Ministry of Finance, these investments have been made through agreements with institutions such as the World Bank, International Monetary Fund, Asian Development Bank, Asian Infrastructure Investment Bank, SAARC Development Fund, and the International Bank for Reconstruction and Development. As of Asar 2080 B.S. (June/July 2023), the total value of these shares held by the government stood at Rs 11.52 billion.
Performance Review Underway for NOC Executive Director Bhatta: The Ministry of Industry, Commerce, and Supplies has begun evaluating the performance of Dr. Chandika Prasad Bhatta, the Executive Director of Nepal Oil Corporation (NOC). On Chaitra 21, the ministry sent a formal letter requesting his performance report up to the end of Chaitra. Dr. Bhatt submitted the report via email by Sunday evening, according to ministry sources.
Appointed on Falgun 6, 2080 B.S. for a three-year term, Dr. Bhatt had signed a performance agreement with the ministry, outlining yearly objectives. Secretary Govinda Bahadur Karki confirmed that the evaluation will be based on that agreement.
Sharp Rise in Smuggling from India as Armed Police Boost Border Security: There has been a sharp rise in the confiscation of smuggled goods from neighboring India. The increase follows heightened vigilance by the Armed Police Force (APF) deployed in Parsa district.
Commander Radheshyam Dhimal of APF’s No. 13 Headquarters reported that goods worth Rs 419.2 million were seized over the past year.
“With increased patrols, we are seizing more smuggled clothing, electronics, hardware, motor parts, foodstuffs, and groceries,” Dhimal said. Two trained sniffer dogs have also been deployed at the Birgunj customs point for inspections.
Bagmati Province Spends Only 32.51% of Budget in Nine Months: In the first nine months of the fiscal year 2081/82, Bagmati Province has spent only 32.51% of its allocated budget. According to Information Officer Indraraj Sanjyal of the Ministry of Internal Affairs and Planning, the province used 28.24% of its capital expenditure and 40.51% of its recurrent expenditure.
Out of the Rs 64.54 billion total budget, Rs 20.98 billion was spent—Rs 10.49 billion each under capital and recurrent headings.
Compensation Distributed to 19 Families Affected by Marsyangdi Hydropower Project: Nineteen families affected by the Marsyangdi Hydropower Center in Aabukhaireni Rural Municipality-4 have received compensation. The project acquired nine ropanis and 10 aanas of land and five houses from 14 families.
Chief Engineer Pashupati Gautam said Rs 217.8 million was distributed—Rs 178.7 million for land and Rs 39 million for houses. The compensation rate was fixed at Rs 18.49 million per ropani, and affected residents who had been protesting for relief have expressed satisfaction.
Nepal Signs Data Protection Deal with Malaysia’s DPIA Asia: A five-year agreement has been signed between Malaysia’s DPIA Asia and Nepal’s One Cover Pvt. Ltd. to support data protection policies and technology in Nepal. The partnership aims to assist Nepal in drafting its first-ever personal data protection law.
While the agreement focuses on Nepal, it is also expected to serve as a model for other Asian nations. The MoU was signed by Prof. Abu Bakar Munir of DPIA Asia and Chiranjeevi Adhikari, CEO of One Cover.
Everest Region Overcrowded as 700 Tourists Enter in One Day: The Everest region is witnessing a tourist influx, with 694 tourists entering Khumbu on Monday alone, according to Sagarmatha National Park Office, Namche.
Ranger Bibek Shrestha reported that the number includes 608 foreigners and 86 Nepalis.
With the favorable spring weather and increased flights to Lukla, hotels in the region are fully booked, making accommodation hard to find, said Everest climber Temba Chhiri Sherpa.
Kumari Bank to Freeze Accounts Without National ID Details: Kumari Bank has announced it will freeze accounts of customers who opened their accounts after mid-January and have not submitted national ID details. The bank has given a deadline of the end of Asar (mid-July) to provide the required details. Accounts lacking ID information within 90 days of opening or by the deadline will be frozen, the bank said.
Govt Forms Committee to Regulate Import of Electric Vehicles: The government has formed a committee to set standards for electric vehicles being imported into Nepal. The move comes amid a flood of unregulated vehicle brands, mainly from China, raising fears that Nepal could become a dumping ground for substandard EVs.
The new policy will define what types of EVs can be imported and who can import them.
Although the government has offered tax incentives to promote EVs, the Nepal Rastra Bank recently reduced the loan limit on EVs from 80% to 60%.
Italian Experts Visit Panauti and Kathmandu Valley to Study Heritage Sites: A four-member Italian delegation visited the Kathmandu Valley and Panauti as part of a heritage and academic exchange. The visit was organized by Prof. Gianluigi Mastrangelo, Academic Director of Heritage International Institute, in coordination with Dr. Tina Manandhar of Tribhuvan University.
On the first day, during an interaction in Panauti, Mayor Ram Sharan Bhandari stated that efforts were underway to include the area on the UNESCO World Heritage list. Representatives from AESER Nepal expressed their commitment to providing academic support to this cause. On the second day, the Italian team committed to collaborating with the National Museum in Chhauni. Discussions were held to create captions in Italian, Nepali, and English Braille, and to develop touch-based demos so that visually impaired visitors could learn about the artifacts through tactile interaction.
Agricultural Cold Storage Eases Burden for Farmers in Terhathum’s Myanglung: The operation of a new agricultural cold storage facility in Sabla, Myanglung Municipality-9, Terhathum, has brought relief to local farmers. The cold storage, managed by Kiyachu Agricultural Cooperative, allows farmers to store their produce safely.
Built through a partnership among the Koshi Province government, Myanglung Municipality, and Kiyachu Agricultural Cooperative, the facility has a capacity of 1,000 metric tons. It helps farmers avoid the problem of selling perishable goods at low prices during peak seasons by allowing them to store and sell later for better returns.
Gold Price Soars by Rs 6,900, Nears Rs 200,000 per Tola: The price of gold in Nepal surged by Rs 6,900 per tola on Tuesday, nearing the Rs 200,000 mark. According to the Federation of Nepal Gold and Silver Dealers’ Associations, hallmark gold was priced at Rs 191,000 per tola on Monday, which rose to Rs 197,900 the next day. The increase is attributed to rising global gold prices, and the current rat
e is the highest recorded in Nepal so far.
