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 highlights:

BIMSTEC Reinvigorate Our Regional Cooperation, Says PM Oli: Prime Minister KP Sharma Oli has said the three pillars of the BIMSTEC Summit – Prosperity, Resilience and Openness – not only align with the Sustainable Development Goals, but also resonate deeply with Nepal’s national aspiration of ‘Prosperous Nepal, Happy Nepali’.

Addressing the BIMSTEC Summit in Bangkok of Thailand today, Prime Minister Oli stressed that BIMSTEC must not only navigate the changing tides but also seize the opportunity to reinvigorate our regional cooperation. “I believe that the theme of the Summit –Prosperous, Resilient and Open BIMSTEC, provides us with that compass –a compass that is pro people, pro prosperity and pro welfare,” he argued.

NRB Issues New Guidelines for Savings and Credit Cooperatives: Nepal Rastra Bank has approved and implemented new guidelines and standards for cooperatives engaged in savings and credit transactions.

With the introduction of the “Guidelines and Standards for Savings and Credit Cooperatives, 2081”, the central bank has imposed a new restriction that allows cooperatives to borrow only up to 5% of their total assets from banks, financial institutions, and cooperative banks.

Additionally, the guidelines include a provision that such loans cannot exceed 100% of the cooperative’s capital fund, thereby putting a cap on excessive borrowing and promoting financial discipline within the cooperative sector.

Nepal and Thailand to Form Joint Business Council: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Thai Chamber of Commerce and Board of Trade have reached an agreement to establish a Joint Business Council.

During a bilateral meeting held at the Thai Chamber’s office with the visiting FNCCI delegation currently in Thailand, both parties signed a memorandum of understanding to form the council.

The newly formed Joint Business Council is expected to facilitate investment promotion and exchange between Nepal and Thailand, enhancing economic cooperation and opening new avenues for business collaboration in both countries.

NEPSE Gains 40 Points This Week, Breaking Four-Week Losing Streak: Nepal’s stock market rebounded this week, with NEPSE rising by 40.01 points to close at 2,703.39. Trading occurred for four days, with gains on three days and a single-day decline. Total turnover reached Rs 26.65 billion, up from last week’s Rs 25.41 billion across five days. Market capitalization rose by Rs 67 billion to Rs 4.489 trillion. This marks a break from a four-week decline, with both the NEPSE index and average daily turnover showing notable improvement.

“M. Out!” – Governor’s Exit Sparks Celebration, Candlelight Protest by Share Investors: Controversial Nepal Rastra Bank Governor Maha Prasad Adhikari’s departure was celebrated by frustrated investors through a dramatic candlelight vigil at Bhrikutimandap. Labeling his term disastrous, they blamed his policies for investor suicides, mental health crises, and financial ruin. “C-grade governor,” shouted participants, lighting candles spelling out “M. OUT.” They warned political interference in appointing the next governor could trigger mass protests. Demanding a reformist, economy-savvy candidate, investors declared this a symbolic end to a “dark age” in Nepal’s monetary policy history.

Governor Adhikari, bid farewell by launching a book highlighting his five-year term’s “achievements.” At the ceremony, he praised his tenure but ignored key policy failures and scandals.

Nepal Sees Over Rs 86 Billion Investment Pledged in Energy Sector in 8 Months:  Nepal has received energy investment commitments worth Rs 86.98 billion in the past eight months for 17 projects aiming to generate 500 MW electricity. The largest is the 166 MW Super Tamor by Crystal Power with Rs 34.59 billion investment. Projects span hydropower and solar, from NEA’s 106 MW Jaldhulla to smaller private ventures. In the first nine months of this fiscal year, 355 MW has already been added to the grid, with national capacity reaching 3,650 MW.

IPO Process of 42 Hydropower Companies Halted Amid Net Worth Rule Dispute: The IPO approval process for 42 hydropower companies has stalled since a directive from the Public Accounts Committee in December 2023 requiring companies to have over 90% net worth. Independent power producers say the rule is impractical as high pre-revenue costs weaken balance sheets. IPPAN and other stakeholders are lobbying to revise the directive. The Securities Board confirms IPOs are only halted for firms below the threshold. A new securities issuance regulation is underway to strengthen Nepal’s capital market.

Banks Offer Share Loan at Single-Digit Rates Amid Ample Liquidity: Most banks in Nepal are offering share mortgage loans at single-digit interest rates, attracting investors. Due to abundant liquidity, base rates have declined, leading to reduced lending rates. Rastriya Banijya Bank offers the lowest rates at 6.28% to 7.28%. Everest, ADBL, Global IME, and others also offer competitive rates ranging from 6.46% to 10.45%. As of mid-Magh, margin loans surged by 27.8% to Rs 115.11 billion. Experts expect more borrowing for stock investments in the coming months despite recent market hesitation.

NRB Issues Unified Circular 2081 for Foreign Exchange Management: Nepal Rastra Bank has issued the Unified Circular 2081, consolidating 29 provisions related to foreign exchange management. It allows firms to make full or partial advance payments for imported goods or services based on foreign bank guarantees. For imports exceeding TT limits, a bank guarantee is mandatory. The circular also outlines provisions for insurance payments on goods stored in Indian warehouses and warranty-related insurance. It applies to all NRB branches and BFIs, covering cross-border trade and Indian currency transactions.

Bank Deposits Drop by Rs 3 Billion in a Day, NRB Data Shows: Nepal Rastra Bank’s data for Chaitra 17–18 reveals a sharp Rs 3 billion drop in total bank deposits, falling from Rs 6.79 trillion to Rs 6.76 trillion in one day. Commercial banks alone saw a decline from Rs 6.063 trillion to Rs 6.060 trillion. While overall credit flow remained steady at Rs 5.468 trillion, commercial banks’ loan disbursement dropped slightly by Rs 1 billion. During this period, the interbank interest rate stood at 3%, and the CD ratio was 79.31%.

Upper Tamor Hydropower to Use TBM Tech for First Time in Nepal: Tamor Energy Pvt. Ltd. will use a Tunnel Boring Machine (TBM) for Nepal’s largest private hydropower project—285 MW Upper Tamor in Taplejung. The 8.7-km tunnel will be built by China Railway Engineering Company. With Rs. 51 billion in investment, the project is expected to be completed within four years. Energy Minister Deepak Khadka highlighted the government’s legal reforms to support private sector involvement. The use of TBM marks a technological milestone for Nepal’s hydro sector, promising jobs and a potential end to load-shedding.

Former NEA ED Ghising Claims He Was Removed for Pursuing Outstanding Dues: The former Executive Director of Nepal Electricity Authority (NEA), Kulman Ghising, has claimed that his removal from the position was due to his efforts to recover the outstanding dues from industrialists for the dedicated and trunkline services.

In a press conference, Ghising stated that his attempt to collect the dues was the main reason behind his dismissal. He further questioned, “Is trying to recover outstanding dues from public institutions considered a crime against the state?” and emphasized that the people of Nepal and history will demand an answer in the future.

Nepal Rastra Bank Governor Mahaprasad Adhikari Bids Farewell: The Governor of Nepal Rastra Bank, Mahaprasad Adhikari, has officially taken leave from his position today. Appointed as the governor on 24th Chaitra 2076 (6th April, 2020), Adhikari has concluded his five-year tenure at the central bank.

Upon his departure from the office, Adhikari held a press conference at the Nepal Rastra Bank premises. During the conference, he reflected on the ups and downs of his tenure and mentioned the attempts to interfere with the autonomy of the central bank.

Adhikari expressed pride in his role during his tenure, highlighting that he had worked to ensure the bank’s operations adhered to global standards and maintained its autonomy.

Employees Provident Fund Distributes Over NPR 5.34 billion Profit to Contributors: The Employees Provident Fund (EPF) has distributed approximately NPR 5.34 billion in profits to savers and contributors from the total profit earned in the last fiscal year.

According to the EPF, around NPR 5.27 billion has been deposited into the individual accounts of savers, while about NPR 64.3 million has been credited to the accounts of contributors to the contribution-based pension fund.

The decision to distribute profits was made during the Board of Directors meeting held on Chaitra 17 (March 30), where the financial statements for the fiscal year 2080/81 were approved. As per the decision, profits were allocated at a rate of 1.10 percent based on the opening balances in the personal accounts of the savers and contributors.

Construction of Nagdhunga-Sisnekhola Tunnel Road Halted for 20 Days: The construction of the Nagdhunga-Sisnekhola Tunnel Road, which is underway in the Chandragiri and Dhunibeshi municipalities, has been halted for the past 20 days due to continuous local obstruction.

Despite the project reaching its final stages, work has not progressed due to protests by local residents. The locals have been blocking the construction since Chaitra 3, demanding that their unresolved grievances be addressed. As a result, construction work has been stalled on both the Kathmandu and Dhading sides of the project.

The locals have raised concerns, stating that the construction methods used during the roadwork have caused damage to their water sources, led to cracking of houses, and land subsidence in the area.

Cooperative Department Initiates Deregistration Process for 26 Cooperatives: The Cooperative Department under the Ministry of Land Management, Cooperative and Poverty Alleviation has initiated the process to deregister 26 cooperatives.

In a public notice, the department stated that these cooperatives had failed to submit regular reports detailing their institutional and business activities. As a result, the deregistration process has been set in motion.

Additionally, these cooperatives have not entered their details in the COPOMIS system, prompting the department to seek clarification from them. According to Section 73 of the Cooperative Act, 2074 and Rule 28(4) of the Cooperative Regulations, 2075, the department has questioned why their registration should not be canceled, requesting an explanation.

Air Services Disrupted at Tarigau Airport in Dang Due to Lack of Passengers: Air services at Tarigau Airport in Dang, Tulsipur, were disrupted on Thursday as there were no passengers. The airport had resumed flight operations from last Monday, but on Thursday, no passengers were booked for the flight.

There was a scheduled flight, but no passengers had purchased tickets from Tulsipur. Additionally, only three people had booked tickets from Kathmandu. Due to the lack of passengers, the flight scheduled for Thursday was canceled, as confirmed by the station manager of the airline, Bal Bahadur Sunar.

Agricultural Produce Worth Rs 18 billion Exported via Kakarbhitta Border Transit:

The Plant Quarantine and Pest Management Centre Quarantine Office Kakarbhitta has shared that agricultural produce worth Rs 17.73 billion has been exported via the Kakarbhitta border point in the eight months of the current fiscal year.

According to the information officer of the office, Chandreshwar Thakur, cardamom, tea, ply and veneer, ginger, broom grass (Amliso) are among the main items exported.During the eight months, the highest amount of export goods is tea worth Rs 8.20 billion, cardamom worth Rs 5.24 billion, ply and veneer worth Rs 2.73 billion have been exported.

Disappointing Progress in Ongoing Road Projects Across the Country: The physical and financial progress of ongoing road projects across the country has been found to be disappointing. During a discussion on the annual report of the fiscal year 2079/080, details of the progress of road projects were shared, revealing that the Kaligandaki Corridor (Beni–Jomsom) project has achieved 73% physical progress and 70% financial progress.

In a presentation at the joint committee of the federal parliament held at Singh Durbar on Thursday, Harkaraj Rai, the Secretary of the House of Representatives, pointed out that the physical and financial progress of the road projects is not in line with government targets. According to the report, the Karnali Corridor (Hilsa–Simikot) project has achieved only 24% physical progress and 20.41% financial progress, while the Nagdhunga Tunnel construction project has reached 62.5% physical progress and 56.9% financial progress.

Private Sector Permitted to Build Industrial Zones: The government has paved the legal way for the private sector to build and operate industrial zones. These facilities, operated by the private sector, will enjoy the same benefits as government-run industrial zones, as per the Industrial Zone Declaration and Operation Work Procedure, 2025 approved last week. The work procedure was approved following a minister-level decision.

The new legal arrangement is expected to complement the government’s ‘One Local Unit, One Industrial Zone’ program announced in 2018. Although 120 out of 753 local units had announced plans to build industrial zones under the program, only three–Mellekh of Achham, Anbukhaireni of Tanahun and Madane of Gulmi– have operational industrial zones at present.

Gold Price Decreases by NPR 3,900 Today: There has been a significant drop in gold prices in the Nepali market on Friday. According to the Nepal Gold and Silver Dealers’ Association, the price of gold has decreased by NPR 3,900 per tola. With this drop, the price of fine gold has been set at NPR 176,400 per tola on Friday. The previous day, gold was priced at NPR 180,300 per tola. Similarly, the price of silver has also decreased by NPR 125. On Thursday, silver was priced at NPR 1,995 per tola, but on Friday, it has dropped to NPR 1,870 per tola.