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 Shows Small Increase This Week: On the last trading day of the week, the Nepal Stock Exchange (NEPSE) index showed a slight increase, rising by 2.08 points (0.07%) to reach 2,658.02. After a steady decline over the past four days, the NEPSE index showed modest improvement on Thursday, as investors increased their share purchases.

Of the 83 companies whose shares rose, 161 saw a decrease, and one remained stable. Most sub-indices showed a decline, but the trade sub-index rose by 17.72 points, the hydropower sub-index increased by 7.73 points, and the investment sub-index saw an increase of 2.81 points.

MCC Aid Program to Continue in Nepal: The United States Millennium Challenge Corporation (MCC) has indicated it will not halt aid programs in Nepal, despite political shifts in the United States following the re-election of Donald Trump.

Reuters reported that Trump’s administration, led by trusted ally Elon Musk, has instructed the suspension of all MCC projects except for those in Nepal and three other countries. Trump has expressed that such foreign aid programs are not a priority, citing concerns about taxpayer money misuse.

NRB Takes Action Against Banks Violating Regulatory Guidelines: The Nepal Rastra Bank (NRB) has taken action against three development banks and two finance companies for non-compliance with regulatory guidelines. According to NRB, Mukti Nath Development Bank, Narayani Development Bank, Salpa Development Bank, Janaki Finance, and Pokhara Finance were penalized for violating operational standards.

In one case, the Chairman of Mukti Nath Development Bank, Bharat Raj Dhakal, was found to be involved in construction activities, prompting NRB to issue a warning.

Durga Prasai Under Investigation Over Loan Defaults: Durga Prasai, a medical entrepreneur, who had garnered attention by running campaigns to waive loans and interests, now faces scrutiny as the loans taken for three of his projects have surpassed NPR 7 billion.

Prasai, who previously led a campaign against financial institutions, now stands accused of threatening bank officials, including the former governor of Nepal Rastra Bank. Prasai has been arrested and is currently under police custody.

Mothihari-Amlekhganj Petroleum Pipeline Imports Over 57 million Kiloliters of Diesel in 6 Years: Since the operation of the Mothihari-Amlekhganj petroleum pipeline under the Nepal Oil Corporation (NOC), a total of 57,166,513 kiloliters (5.71 billion liters) of diesel has been imported over the past six years. According to the Madhesh Regional Office of the Nepal Oil Corporation in Amlekhganj, this amount of diesel was imported through the pipeline from the fiscal year 2076/77 to the current fiscal year 2081/82. This data reflects imports over the first nine months of the current fiscal year.

Regional Office Chief Pralankar Acharya mentioned that between 1,353 kiloliters and 3,568 kiloliters of diesel were imported daily via the pipeline. In the first nine months of the current fiscal year, a total of 851,338 kiloliters of diesel has been imported. In the previous fiscal year 2080/81, the daily import rate was 2,840 kiloliters, with a total of 1,036,600 kiloliters of diesel imported over the year.

Minister Gurung Warns of Facebook Ban If Not Registered in 7 Days: Minister for Communication and Information Technology, Prithvi Subba Gurung, has warned that Meta (Facebook’s parent company) will be banned in Nepal if it is not registered within the next 7 days. At an interaction program organized by the National Information Commission in Kathmandu on Friday, Minister Gurung stated that although multiple notices have been issued urging Meta to register in Nepal, the company has not complied.

Minister Gurung emphasized that money from Nepal is consistently being transferred to Meta’s offices, and therefore, the company must register in Nepal and pay taxes. He pointed out that Meta has boasted of having revenue greater than Nepal’s GDP, and he argued that the nation’s sovereignty cannot be tied to money.

NRNA Australia Expresses Wish for Increasing Investment in Nepal: The Non-Resident Nepali Association (NRNA) Australia has apprised Prime Minister KP Sharma Oli that the NRN community in Australia wished to increase investments in Nepal. During a meeting with the Prime Minister last night, NRNA Australia President Anil Pokhrel said the NRNs in Australia longed for investing more in Nepal and they wished to see an increased investment-friendly atmosphere here.

Talking to RSS, Pokhrel said the meeting primarily focused on these matters. Matters relating to the contribution of Nepali community to the economy of Australia and of Nepal, the utilisation of the trade and investment promotion framework and the strengthening of the bilateral relations were also discussed during the meeting.

Agriculture Budget Ceiling Set at NPR 1 billion for New Provincial Projects: For the upcoming fiscal year, the Ministry of Agriculture has set a budget ceiling of NPR 1 billion for new agricultural programs and projects at the provincial and local levels. However, provincial and local governments have proposed programs worth over NPR 30 billion.

According to Ramnath Adhikari, the Minister of Agriculture, the budget ceiling includes funding for agricultural roads, markets, livestock programs, organic fertilizers, and crop development.

Taxi Classification System Implemented in Nepal: In Nepal, taxis are now classified into three categories based on service and quality standards. The Ministry of Physical Infrastructure and Transport has implemented the ‘National Standards for Vehicles Used as Taxis 2081,’ which supersedes the previous standards set in 2076.

This new guideline affects all vehicles, including newly registered taxis and those operating before the new regulations were enacted. According to the Ministry, taxis are now categorized into three classes: Ordinary, Deluxe, and Luxury, based on their size, mechanical capacity, and available amenities.

Nepal Insurance Authority Amends Foreign Employment Group Insurance Fund Regulations for Second Time: The Nepal Insurance Authority has made the second amendment to the guidelines concerning the establishment and operation of the Foreign Employment Group Insurance Fund (PUL). In this second amendment, the insurance companies are now required to deposit the details of premiums collected between the 1st and 15th of each month into the bank account by the 1st of the following month.

Additionally, they must provide the details of the premiums collected between the 16th and the end of the month by the 1st of the next month. The fund manager is also required to confirm whether the premiums have been received. The insurance company must submit the details of the claims paid between the 1st and 15th of each month, as well as the details from the 16th to the end of the month, to the fund manager by the 1st of the next month.

New Tourism Bill to Restrict Direct Everest Climb Without Prior 7,000-Meter Himalayan Ascents: The government is set to impose a restriction on climbing Mount Everest without first summiting a Himalayan peak of at least 7,000 meters. This change has been introduced in the Tourism Bill 2081 registered in the National Assembly by the Ministry of Culture, Tourism, and Civil Aviation.

This bill will replace the Tourism Act of 2035 B.S. According to the bill, a permit to climb Mount Everest will only be issued after an individual presents proof of having summited a peak in Nepal that is higher than 7,000 meters. Additionally, the bill makes it mandatory for climbers to present a health certification. If the climber’s health is found to be unsatisfactory, they will be prohibited from participating in mountaineering activities or joining a climbing team.

Oil Corporation’s Profit, Consumers Miss Out on Benefits: Since the start of the current fiscal year, the price of petroleum products in the international market has decreased, but the Nepal Oil Corporation has made substantial profits without passing on the benefits to the consumers.

Although the price of crude oil has decreased by 23.53% in the international market, the corporation has only reduced the price of petrol by 6.43% and diesel, kerosene, and aviation fuel by 8.75%. The price of cooking gas has not been reduced at all. During this period, the corporation has earned a profit of NPR 9 billion.

Sun Nepal Life Insurance to Issue 27% Rights Shares: Sun Nepal Life Insurance Company has announced the issuance of 27% rights shares. The company will issue 10,696,320 shares with a face value of 100 rupees per share, amounting to 1,069,632,000 rupees. The rights shares will be available at a 1:0.27 ratio, starting from Baishakh 30.

Applications for the rights shares can be submitted until Jestha 19. The company closed the book on Baishakh 5, meaning shareholders holding shares as of Baishakh 4 will be eligible to apply. Nepal SBI Merchant Banking is the issue manager for the rights shares.

HAN Requests Road Upgradation on Narayanghat-Butwal Section: The Hotel Association Nepal (HAN) Gandaki has urged the government to expedite the upgradation of the Narayanghat-Butwal road section along the East-West Highway. In a press release issued by Chairman Hariprasad Sharma Gaire, the association highlighted the delays in road extension and upgradation, which have caused significant inconvenience to both tourists and general travelers.

Sharma noted, “Despite work having started long ago, the slow progress of upgradation has led to discomfort for tourists and the entire tourism sector. Travelers, both locals and tourists, are facing daily struggles due to roadworks and the resulting dust and mud.”

Koshi Province Invites Indian Investors to Explore Opportunities: The Koshi Province Committee of the Nepal-India Chamber of Commerce and Industry (NICCI) has invited Indian investors to explore investment opportunities in the province, highlighting its potential in industries like agriculture, tourism, and others.

Mukesh Upadhyay, the President of the Koshi Province Committee, made this appeal during the ‘Nepal-India Partnership Summit’ held in Purnia, Bihar, India. The summit was organized in collaboration with several institutions, including the Sub-Himalayan Research Institute and the Nepal-India Centre.

Rapid Construction of Bridges in Saptari: In the first nine months of the current fiscal year, six bridges have been completed in Saptari, and seven more are in the final stages of construction. According to Ashutosh Karna, the Chief of the Lahan Road Division Office, the load testing of completed bridges is still pending.

The construction of these bridges is part of an effort to expand the road network in Saptari. Notable bridges include those on the Chhinnamasta Municipality’s Ghode Daha River (costing NPR 19.1 million) and the Rajbiraj-Chhinnamasta road at Ghode Daha (costing NPR 48.5 million).

Government Approves Import of Areca Nut Despite Sufficient Domestic Production: Despite domestic production being sufficient, the government has approved the import of over 11,000 tons of areca nut for the next six months. This decision came after the government scrapped the import quota system in the previous month.

Government statistics indicate that Nepal produces approximately 14,500 tons of areca nut annually, meeting the needs of local industries. However, critics argue that the Ministry of Industry, Commerce, and Supplies has caved to industry pressures, facilitating imports despite adequate local production.

Rural Products from Humla Exported to China: Indigenous food products from Humla have been successfully exported to Taklakot, China, following an agreement between local entrepreneurs from both countries.

Mukunda Rokaya, a food industry operator from Simkot Municipality-6, reported that the first consignment, including millet and buckwheat flour, walnut oil, and other products, was delivered to China, generating NPR 1.8 million in trade revenue.

Delay in Road Construction Contracts in Achham and Bajura: The Infrastructure Development Office in Achham has awarded nearly 19 contracts across seven roads, including two provincial pride projects, in the districts of Achham and Bajura. Despite repeated extensions of the deadlines, 14 of these contracts have not been completed.

A total of NPR 3.57 billion has been allocated for the construction of 13 roads in Bajura and Achham, but the companies responsible for the construction have caused delays. So far, NPR 1.89 billion has been spent on these road projects, and NPR 573 million has been allocated for this year.

Gold Price Drops by One Thousand Rupees: According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold, which was traded at NPR 190,600 per tola on Thursday, has dropped to NPR 189,600 per tola on Friday.

Similarly, the price of silver has remained steady at NPR 2,000 per tola on Friday. In the international market, the price of gold has also fluctuated. On Friday, the price of gold per ounce was approximately 3,325 US dollars.