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.
Stock Market Sees Significant Increase in Trading Volume on First Day of the Week: The stock market experienced a notable surge in trading volume on the first day of the week. Compared to the previous day, the trading volume increased by NPR 3 billion. On the previous day, the market saw a turnover of NPR 7.87 billion, whereas today, the turnover reached NPR 10.87 billion. Amidst high trading activity, the market index, NEPSE, saw a modest increase. The NEPSE index rose by 3.58 points, settling at 2661 points.
During the trading session, it even reached 2684 points at 12:25 PM. Among the sectors, the investment sector saw the highest increase, while the finance sector experienced the largest decline. In terms of sector performance, the banking sector rose by 0.39%, development banks by 0.02%, while the finance sector dropped by 1.05%. Similarly, life insurance increased by 0.11%, microfinance by 0.94%, non-life insurance by 0.33%, and others by 0.57%. On the other hand, the hotel and tourism sector grew by 0.38%, hydropower by 1.06%, investment by 1.77%, production by 0.41%, and the trade sector saw a rise of 1.18%.
Long-Term Reforms and Management in the Cooperative Sector Begins, Says Minister Adhikari: The National Cooperative Regulatory Authority has begun its work to address long-term reforms and management issues in the cooperative sector. At an interaction program held on Friday, Minister for Land Management, Cooperatives, and Poverty Alleviation, Balram Adhikari, highlighted that the government is serious about resolving problems within the cooperative sector.
The authority, formed on 14th Poush 2081, has already prepared its regulations. Minister Adhikari stated that the authority would soon appoint a chairperson and accelerate its efforts. He assured that the legitimate demands of the cooperative sector will be addressed in due course.
Maya Rai, Congress MP, Arrested for Misappropriation at Co-operative: Maya Rai, a Member of Parliament from the Nepali Congress, has been arrested on charges of misappropriating funds from the Swarnalaxmi Savings and Credit Co-operative in Kalimati. Rai was arrested from her residence in Kapan on Saturday evening by the police. The Kathmandu District Police Range informed the Federal Parliament Secretariat on the same day that Rai was being held for investigation.
Rai, along with others, is accused of embezzling 1.19 billion rupees from 690 depositors. A recommendation was made to file a case against her for the misappropriation of funds at the Swarnalaxmi Savings and Credit Co-operative. Despite an arrest warrant being issued by the Kathmandu District Court for charges of co-operative fraud and organized crime, she had been absconding for a long time.
Over NPR 5 billion Budget Returned by Various Agencies Due to Unused Allocations: More than NPR 5 billion in budget allocated for the current fiscal year has been returned due to non-utilization, according to various government bodies. According to the Ministry of Finance, the majority of the returned budget falls under the capital expenditure category. The Ministry of Energy, Water Resources and Irrigation, along with the Millennium Challenge Account Nepal Development Committee (MCA-Nepal), has returned the highest amounts of budget.
As per the Ministry of Finance’s information officer, Ambika Prasad Khanal, a total of NPR 534 million has been returned from operational budgets, and NPR 5.03 billion has been returned from capital expenditure. The Ministry of Communication and Information Technology returned NPR 9.5 million, the Ministry of Culture, Tourism, and Civil Aviation returned NPR 3.9 million, the Election Commission returned NPR 24.2 million, and the Ministry of Land Management, Cooperatives, and Poverty Alleviation returned NPR 15.8 million.
Nepal Rastra Bank Celebrates Its 70th Anniversary: Nepal Rastra Bank celebrated its 70th anniversary today. The day of its establishment, 14th of Baishakh, 2013 B.S., has been observed as the foundation day of the central bank. On the occasion of the 70th anniversary, Acting Governor Dr. Neelam Dhungana Timshina emphasized the commitment of the bank to continuously work towards sustainable economic development, macroeconomic stability, and strengthening of a secure and efficient payment system.
She also highlighted the creation of necessary monetary and foreign exchange policies, managing them effectively, and expanding access to financial services, thereby enhancing public trust in the financial system. To mark the anniversary, Nepal Rastra Bank organized various events and programs.
Banks Lack System to Monitor Proper Use of Loans, Says NRB: It has been found that commercial banks lack a proper system to monitor whether borrowers are using loans for their intended purposes. The Nepal Rastra Bank’s Bank Supervision Department highlighted this issue in its annual report. The report stated, “Some banks lack a proper monitoring system to check if loans are being used for their intended purposes. Without such a system, there is a possibility that loans are being used for unintended purposes.”
The report also indicated that some banks do not have an appropriate information system to manage deposits, loans, risk-weighted assets, and capital funds. It was found that some banks have not complied with regulatory requirements. “Some banks have been holding non-banking assets for more than three years without selling them, and there is no clear plan for managing such assets,” the report mentioned.
Nepal Secures Foreign Aid Commitments Worth NPR 221.99 billion till Falgun: By the end of Falgun of the current fiscal year, Nepal had secured foreign aid commitments worth NPR 221.99 billion. According to the Ministry of Finance, 25.7% of the total commitment was in the form of grants. During the same period, Nepal received actual foreign assistance worth NPR 101 billion.
Among the sectors, the energy sector received the highest share, accounting for 25.4% of total foreign aid commitments. The good governance sector received the least, with only 0.2% of commitments. Similarly, commitments for environment and climate amounted to 21.7%, irrigation 12.8%, drinking water 11.5%, disaster management 9.1%, transportation 6%, social sector 4.3%, nutrition 1.5%, and infrastructure 0.6%.
Lack of Monitoring System for Loans in Commercial Banks Commercial banks have been found lacking a proper system to monitor whether loans are being used appropriately. The Nepal Rastra Bank’s Banking Supervision Department highlighted this issue in its annual report. The report mentions that some banks do not have an appropriate monitoring system to ensure that loans are being used for their intended purpose. “Without a system to monitor whether loans are being used properly, there is a possibility that loans may be used for purposes other than what they were intended for,” the report states.
It was also found that some banks do not have proper information systems to manage deposits, loans, risk weights, and capital adequacy. Commercial banks have been found not complying with regulatory frameworks, with some holding non-banking assets for over three years without selling them. However, there has been no clear plan to manage these assets.
Nepal Civil Aviation Authority Staff Protest Organizational Split: Staff members of the Civil Aviation Authority of Nepal have staged protests against plans to split the authority into two weaker bodies, arguing that the move was made without proper discussions with stakeholders. The Nepal National Employees Organization of the Civil Aviation Authority issued a statement opposing the plan, which was registered in the federal parliament by the Minister of Culture, Tourism, and Civil Aviation on Magh 19, 2081, and presented in the House of Representatives on Fagun 13, 2081.
They criticized the proposal to dismantle the current structure and form two weaker authorities. Despite submitting a memorandum to the Minister on Fagun 28, 2081 B.S demanding the withdrawal of the bills presented by the Nepal government, there has been no response to their request.
Hotels Hosting Casinos Must Hold at Least 10% Ownership Under New Bill: Hotels that allow casinos to operate within their premises must now invest at least 10% share ownership in the casinos. This provision is being introduced through the Tourism Act 2081 (2024/25), which has been registered in the National Assembly.
The bill states: “When a four-star or higher-rated hotel or resort agrees to allow casino operations within its premises, the hotel or resort must hold at least 10 percent ownership in that casino.” Previously, under the Casino Regulation 2070 (2013), casinos could operate with separate licensing arrangements. With this new provision, the responsibilities and liabilities of casinos will now fall directly on the hotels.
Garlic Imports Double Again Despite Previous Crackdown: Garlic imports have doubled once again. After facing criticism over the abnormal rise in imports last Poush (mid-December to mid-January), stricter quarantine checks were enforced at customs points handling goods from China. Following the quarantine restrictions on garlic, imports had sharply declined during the months of Magh and Falgun (mid-January to mid-March).
However, Department of Customs data shows that imports in Chaitra (mid-March to mid-April) doubled compared to Magh and Falgun. In Magh, Nepal had imported 610,280 kilograms of garlic worth NPR 79.95 million. In Falgun, 485,701 kilograms of garlic worth NPR 62.54 million were imported. However, according to departmental statistics, garlic imports doubled in Chaitra compared to Magh and Falgun. In Chaitra, 964,335 kilograms of garlic worth NPR 122.86 million were imported.
Motorable Arch Bridge Construction Begins Over Sundarekhola in Parbat: Construction has begun on a motorable bridge over the Sundarikhola river, which falls under the Parbat section of the Pushpalal Mid-Hills Highway Project. The bridge construction began two years after the blacktopping of the Parbat section was completed.
Kalpana Mishra, an engineer at the Pushpalal Mid-Hills Highway Project Office, informed that for the first time, an “arch bridge” is being constructed over Sundarikhola in Chuwa, Ward 8 of Kushma Municipality, Parbat. According to her, construction has been underway for the past three months. The bridge will be 80 meters long and 11 meters wide. Since it is longer than a typical bridge, it will have a double-span structure.
A Rise in Egg Prices After a Steady Decline: The price of eggs, which had been continuously decreasing, has started to rise again. Farmers, who were concerned about not even covering the cost of production, are now feeling a sense of relief as egg prices have begun to increase. Last year, the price of a crate of 30 eggs had fallen to 350 rupees, from a peak of 525 rupees. Currently, the price has risen to 450 rupees.
According to Binod Pokharel, the President of the Nepal Layers Poultry Farmers Association, starting today, the support farm price for large eggs (30 eggs) will be set at 430 rupees, medium at 380 rupees, and XL at 450 rupees. The price of large eggs had previously dropped to 350 rupees. He mentioned that the decision to increase the prices was made during a discussion held by the association on Saturday.
Construction of Gandaki Provincial Assembly Building Advances After 7 Years: The long-awaited construction of the Gandaki Provincial Assembly building, which has been a priority in policy and budget discussions every year, has finally moved forward after seven years. A new building will be constructed on a 7-ropani (about 0.35 hectare) plot behind the current building in the Riverpur area of Pokhara-3, costing 250 million rupees.
Omraj Dhungana, chief of the Urban Development and Building Office of Kaski, stated that out of the 110 ropers of land owned by the Municipal Development Training Center, the new building will be constructed on the 7-ropani portion. The office has signed a construction contract with East West JV, New Baneshwor, Kathmandu, for 25,37,82,860 rupees, including VAT, on the 18th of Magh, 2081 B.S. The construction must be completed within 36 months (3 years), and the building is expected to be ready by 18th Magh 2084 B.S.
Women in Industrial Village Active in Productive Labor: In line with the federal government’s policy of establishing industrial villages, women in the industrial village under construction in Tanahun’s Aabukhaireni Rural Municipality have found opportunities to transition from domestic work to productive labor. Women in the Aabukhaireni Industrial Village are learning to make bamboo products such as ‘mudha’ (a traditional basket) and ‘naglo’ (another bamboo item) by watching YouTube videos.
These women, who were once confined to household chores, are now moving towards economic self-sufficiency using local resources. Gauri Gurung, a resident of Dhakal Tar, Aabukhaireni-3, said, “Initially limited to household work, I now support my husband by making and selling ‘mudha’. I learned to make them by watching videos on YouTube and now produce bamboo products professionally.”
Drinking Water Project Worth 1.5 Billion to Be Implemented in Pokhara: A drinking water project costing NPR 1.5 billion will be launched in Pokhara Metropolitan City. Amid the drinking water shortage in some wards, a tripartite agreement has been signed to implement the project on a cost-sharing basis to provide clean drinking water to residents in areas like Kahun Dhada, Kristi, Bharatpokhari, Nirmalpokhari, and Mattikhan. The project will provide drinking water to wards that have been facing shortages.
The project will cover Ward 21 and Ward 33 of Pokhara, under the central government’s large drinking water initiative, which includes the Bharatpokhari, Nirmalpokhari, Kristi Drinking Water Project, Mattikhan Drinking Water Project, and the Kahudharhara Drinking Water Project in Ward 11 of Pokhara. A tripartite agreement has been signed for the construction, operation, and implementation of these projects.
Kanchanjunga Needs Promotion as a Sustainable Tourist Destination: Despite being the third highest mountain in the world, Kanchanjunga remains underpromoted, and experts emphasize the need to connect this area with local participation, sustainable tourism, and biodiversity conservation to establish it on the global stage. At an event organized on the 70th anniversary of the first Kanchanjunga ascent, participants called for promoting Kanchanjunga as a model for local participation and sustainable development.
The British Embassy in Kathmandu, in collaboration with the Prosperous Hill project, organized the event. The event highlighted efforts to promote the preservation, tourism, and historical significance of the Kanchanjunga region. British Ambassador Rob Fenn emphasized that the region’s uniqueness, biodiversity, and cultural heritage must be preserved.
Lumbini Province’s Revenue Collection Falls Short of Target: Lumbini Province has failed to meet its revenue collection target for the current fiscal year 2081/82. As of the first nine months of the fiscal year, only 30.06% of the annual target has been achieved.
According to Rabindra Aryal, Senior Accounts Controller and Information Officer at the Provincial Accounts Controller’s Office, the total revenue collection for this period was NPR 1.416 billion, which includes not only revenue but also returns from unreconciled amounts, adjustments, and grants. However, experts in the economic field argue that returns and grants should not be considered as actual income. The annual revenue target was set at NPR 4.712 billion.
Tamakoshi V Hydroelectric Project Audit Work Resumes: The audit work for the Tamakoshi V Hydroelectric Project has resumed following local demands and an agreement between the project management and the local residents. Local residents had previously halted the work, demanding benefits such as one job per household, compensation for blasting noise, water source maintenance, and road improvements.
After a series of discussions, including a nine-point agreement, the work resumed on Saturday. According to local participant Yadav Acharya, the project will implement the measures outlined in the Environmental Impact Assessment (EIA) report and will not impose age restrictions on employment based on skill sets.
Gold Price Rises by NPR 100 Per Tola; Silver Price Falls: The price of gold increased by NPR 100 per tola (around 11.66 grams) on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold for the day was set at NPR 189,700 per tola.
The previous day, it was traded at NPR 189,600 per tola. Meanwhile, the price of silver fell by NPR 10 per tola. The previous day, silver had been traded at NPR 2,000 per tola, but today, it is priced at NPR 1,990 per tola.
