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.
Nepal Stock Market Falls, Turnover Declines Sharply on Monday: Nepal’s stock market index NEPSE (Nepal Stock Exchange) fell along with a drop in trading volume on Monday. The NEPSE index dropped by 14.5 points compared to the previous day, closing at 2,647 points. Although the market initially surged to 2,676 points within the first eight minutes of trading, it consistently declined throughout the rest of the day.
Trading volume also declined significantly. While the previous day’s turnover stood at Rs 10.87 billion, today’s trading amount shrank to Rs 8.91 billion. Among the listed companies, prices of 78 firms rose, while 167 companies witnessed a decline. Despite the overall market downturn, the finance sector showed notable strength. The Finance sub-index increased by 1.40 percent, marking its first significant rise after several consecutive days of losses. Similarly, the Trade sector gained 0.42 percent.
Nepal’s Economy Shows Signs of Improvement, Claims Ministry of Finance: Despite external factors such as remittances, international trade, and foreign currency reserves strengthening, the domestic economy of Nepal has been facing challenges. However, the Ministry of Finance has reported that there are signs of recovery within the economy.
Internal economic indicators, including improved government spending, higher revenue collection, and reduced inflation, point to positive growth. The government’s expenditure for the fiscal year 2081/82 has increased by 4.94%, reaching NPR 841 billion by the end of Magh.
Sher Bahadur Deuba Pledges Budget to Address Private Sector Concerns: Nepali Congress President Sher Bahadur Deuba has assured that the upcoming budget for the fiscal year 2082/83 will address the issues of the private sector. Speaking at an event organized by the Congress’s Department of Industry and Commerce in Kathmandu, Deuba emphasized that the budget would actively engage with the private sector to further boost the economy.
He acknowledged the private sector’s critical role in Nepal’s economic growth and reiterated that the Congress party is always committed to resolving issues related to private businesses. “If there is strengthened cooperation between the private sector and the government, the economy will become stronger,” Deuba stated.
Elon Musk’s Starlink Eyes Nepal for Satellite-Based Telecom Service: Elon Musk’s telecom service, Starlink, is eyeing Nepal to offer satellite-based communication services. Starlink has shown interest in providing satellite broadband services in Nepal and has already presented a business proposal to the Ministry of Communication and Information Technology, seeking a suitable investment environment.
As discussions around affordable and high-quality satellite internet services heat up, satellite phone services, which have been operating in Nepal for over two decades, remain relatively obscure. Companies like Constellation Pvt. Ltd. and IFOR Technology have been providing satellite phone services in Nepal with regulatory approval from the Nepal Telecommunications Authority.
Five Billion Budget Return in Nepal’s Ongoing Fiscal Year: Over five billion rupees of the budget allocated for the current fiscal year have been returned from various agencies, highlighting the unspent funds. According to the Ministry of Finance, the return is predominantly from capital expenditure. Among the highest returns were from the Ministry of Energy, Water Resources and Irrigation, and the Millennium Challenge Account Nepal (MCA-Nepal).
The spokesperson for the Ministry of Finance, Ambika Prasad Khanal, reported that the total returned budget is 534 million in recurrent expenditures and 5.03 billion in capital expenditures. Several ministries, including Communication and Information Technology, Culture, Tourism and Civil Aviation, Election Commission, and Ministry of Land Management, have returned a portion of their budget allocations.
Petroleum Pipeline from India to Nepal Begins Operation Without Official Inauguration: The petroleum pipeline from Motihari in India to Amlekhganj (Bara) in Nepal has begun operation without an official inauguration. On September 9, 2019, Prime Ministers KP Sharma Oli of Nepal and Narendra Modi of India virtually inaugurated the pipeline, marking the start of diesel imports.
After petrol and kerosene were also included in the imports, both countries’ prime ministers had planned an official physical inauguration of the pipeline. Currently, petrol and kerosene are being imported through the pipeline. However, the official inauguration of the pipeline is still yet to be finalized.
National Planning Commission Initiates Process to Remove Non-viable Projects: In response to the inclusion of unfeasible plans in the national budget, the National Planning Commission has started the process of revising the National Project Bank. According to the new standards, projects with a budget of less than three million rupees will not be allowed entry into the Project Bank, and those not included in the bank will not be considered in the budget.
By Wednesday, the Commission had already entered 6,246 projects into the new system, ensuring that only viable projects will receive budgetary allocations, preventing fragmentation of funds for non-prioritized schemes.
Investment Board Approves Strategic Action Plan: The Investment Board of Nepal has approved a new strategic action plan under the leadership of its CEO, Sushil Gyawali. The plan, approved at the 61st meeting chaired by Prime Minister KP Sharma Oli, focuses on developing 57 projects that are currently in different stages of progress.
Additionally, the plan includes measures to improve the efficiency of the one-stop service center and streamline operations within the board. A proposal to ensure a secretarial-level position at the board has also been approved to ensure better management.
Expansion of 33 kV Transmission Line in Mustang Progressing Rapidly: The Nepal Electricity Authority (NEA) is rapidly advancing the expansion of the 33 kV transmission line in Mustang. This expansion will connect Thasang Rural Municipality-2 Kowang to Upper Mustang and link it to the 103-kilometer transmission line stretching to Charang in the Dhamodarkund Rural Municipality.
Currently, a 11 kV transmission line is operating in the northern part of Mustang, connecting to the Tibet Autonomous Region in China. The NEA has extended the 33 kV transmission line under the central transmission grid, aiming to link the entire district through the central transmission network.
Supermarkets Restricted from Labeling Imported Products: Supermarkets have been prohibited from labeling products made by other manufacturers. The Commerce, Supplies, and Consumer Protection Department issued this directive on Sunday.
The department’s spokesperson, Dik Bahadur Karki, explained that the directive is aimed at enforcing the Consumer Protection Act of 2075. “Supermarkets were labeling products they did not produce, leading to consumer complaints. After meeting with representatives from the markets, we issued this directive,” Karki said.
Himalayan Customs Office in Humla Reopens After Four Months: The Yari Customs Office in northern Humla has reopened after being closed for four months due to extreme cold. The office had been shut since December 25 and resumed operations on Sunday after the snow cleared.
Ramraj Jaisi, the office chief, confirmed that the office was closed due to the snowfall and resumed operations after the conditions improved. The local road section will also be cleared of snow soon, and transportation services are expected to restart shortly.
Pokhara-Muglin Road Improvement Nears Completion: Public commuters will soon enjoy smoother travel on the Pokhara-Muglin road, which is being upgraded to a four-lane highway. The project is set to complete before winter, as long as no major obstacles arise.
The road expansion, which began in April 2021, is a part of the 50-year-old Prithvi Highway renovation. The Eastern section (Jamune-Muglin) is 82.95% complete, while the Western section (Pokhara-Jamune) is 50.34% complete.
Karnali Province Intensifies Budget Preparation for FY 2082/83: The Karnali Province government has accelerated the process of drafting the policy and budget for the upcoming fiscal year (2082/83). Discussions and debates focusing on various aspects of the budget are currently ongoing between relevant agencies, secretaries, and ministry employees. The provincial governments are expected to present their budgets by June 15 (Asar 1).
Rajeev Bikram Shah, the Minister for Economic Affairs and Planning of Karnali Province, stated that the ministries have already been assigned their budget ceilings. He further mentioned, “We have recently distributed the budget ceilings to the ministries, and they are working accordingly. We are also engaged in discussions related to the budget within the ministries.”
Over 400 Climbers Set to Summit Mount Everest in Peak Season: More than 400 climbers from 53 countries are gathered at the Everest Base Camp, preparing to ascend the world’s highest peak, Mount Everest (8,848.86 meters). The main climbing season, which spans April and May, sees a significant number of climbers, along with their guides and support staff.
Tourism department statistics indicate that, in addition to the climbers, about 1,000 people, including guides and Sherpas, will reach the summit. The Everest season has become a major event for mountaineers globally, with several expeditions planned for the coming weeks.
Tea Export Soars Amid Growing Export Figures: Nepal’s tea export has seen a significant rise, with tea exports totaling NPR 3.57 billion (164,852 kg) between July and March of the current fiscal year 2081/82. This represents a substantial increase from the previous year, where exports amounted to NPR 2.54 billion (130,516 kg).
The Department of Customs reports that tea exports are expected to reach NPR 4.5 billion by the end of the fiscal year. The data highlights a strong upward trend in tea exports, as demand for Nepali tea grows internationally.
Infrastructure Offices in Sudurpashchim Struggling with Interim Leadership: In the Sudurpashchim Province, 29 offices under the Department of Physical Infrastructure Development are operating under interim leadership due to staffing shortages.
Many of these offices, which manage development programs in areas like roads, water supply, and urban development, have not filled permanent positions, leading to temporary officers managing the operations. The province continues to struggle with fulfilling staff positions, which is hampering the smooth execution of infrastructure projects.
Machhapuchhre Bank Signs Remittance Deal with Kuwait’s Al Muzaini Exchange: Machhapuchhre Bank has signed a remittance service agreement with Al Muzaini Exchange in Kuwait. The agreement, formalized in an event at the Millennium Hotel in Salmiya, aims to make it easier for Nepali expatriates in Kuwait to send remittances to Nepal.
The agreement was signed by Santosh Koirala, CEO of Machhapuchhre Bank, and Hugh Fernandez, General Manager of Al Muzaini Exchange. The service is expected to facilitate smoother and faster remittance transactions for Nepalis living in Kuwait.
Dry Port in Birgunj Sees Revenue Growth Despite Economic Slowdown: Nepal’s first dry port in Birgunj has seen an increase in revenue collection despite the economic slowdown. As of the end of the fiscal year, the Birgunj dry port customs office collected significantly more revenue compared to the previous fiscal year.
The office, which is Nepal’s first dry port, collected 3.84 billion rupees more in revenue compared to last year. According to the office chief, Dhan Bahadur Baruwal, the total revenue collected for the current fiscal year amounts to 36.83 billion rupees. The increase is seen as a positive sign amidst the challenging economic conditions.
88 Companies Await IPO Launch in Nepal: A total of 88 companies in Nepal are awaiting approval to launch their Initial Public Offerings (IPOs), amounting to more than 56.33 billion rupees. The Securities Board of Nepal (SEBON) has confirmed that these companies are in the process of issuing IPOs and are currently undergoing financial evaluations.
Some of these companies are preparing to issue their IPOs at a premium price, particularly in the hydropower sector. SEBON is reviewing the financial health of these companies before allowing them to proceed with the IPO issuance.
Gold and Silver Prices Drop in Nepali Market: Gold prices have dropped by NPR 1,400 per tola in the Nepali market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmarked gold was NPR 188,300 per tola on Monday, down from NPR 189,700 per tola on Sunday.
Similarly, the price of silver also decreased. The price of silver per tola was NPR 1,970 on Monday, compared to NPR 1,990 on Sunday.
