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 Index Rises This Week Amid Mid-Week Surge: The stock market index witnessed growth this week, despite declines on three out of five trading days. The significant surge on Wednesday helped the market close in positive territory. On Sunday, the market dropped by 3.44 points, followed by a 9.98-point decline on Monday. However, it recovered slightly by 1.03 points on Tuesday and saw a substantial jump of 62.25 points on Wednesday. On the final trading day, Thursday, the market slipped again by 12.04 points. The political uncertainty and delay in the Governor’s appointment process caused the market to fall again on Thursday. Despite the index’s fluctuations, trading volume remained strong. Over the past two days, transactions exceeded NPR 10 billion, with the weekly turnover reaching NPR 556.6 billion.
SEBON Fails to Reach Decision on New Stock Exchange License: The Securities Board of Nepal (SEBON) called a board meeting on Thursday to discuss the licensing of a new stock exchange; however, no decisive conclusion was reached. The meeting was convened to deliberate on the implementation of the report prepared by the study committee led by Chintamani Shiwakoti, a director at Nepal Rastra Bank. The study was aimed at exploring the feasibility and requirements for a new stock exchange in Nepal. On Poush 5, 2081 B.S., the Government of Nepal’s Cabinet had instructed SEBON to proceed with the implementation of the recommendations from Shivakoti’s study committee.
JICA to Provide 2.8 billion Yen Grant for BP Highway Reconstruction: The Japan International Cooperation Agency (JICA) is set to provide a grant of 2.8 billion Japanese Yen for the reconstruction of the BP Highway. According to Arjun Prasad Aryal, spokesperson of the Department of Roads, a preliminary draft regarding the grant has been received. “Suggestions are to be made on it. Currently, the ministry is writing its opinion for submission,” he said.
At the current exchange rate, the Japanese Yen is equivalent to NPR 2.65 billion. Aryal mentioned that the exact amount will be finalized after the department sends its suggestions back to JICA.
Neighboring War Raises Economic Concerns for Nepal: The ongoing war between India and Pakistan has raised concerns about the potential impact on Nepal’s economy. Despite the conflict being geographically distant, experts warn that the economic consequences could affect Nepal due to its high dependency on trade with India. Economist Chandramani Adhikari stated that the war could cause economic instability in South Asia, with ripple effects in Nepal’s economy, particularly in trade, investment, technology transfer, and inflation. As Nepal’s economy is import-driven, it is likely to be more affected by any disruptions.
Government to Privatize Seven Public Enterprises: The government is preparing to privatize seven public enterprises. A Cabinet meeting held on Baisakh 15, 2082, approved the management of government investments in seven public enterprises currently in ailing conditions. According to a senior official from the Ministry of Finance, the decision is part of the process to privatize state-owned enterprises that are currently in poor financial health. Minister for Information and Communication Technology Prithvi Subba Gurung stated that the Cabinet has approved the management of government investments in Janakpur Cigarette Factory Limited, Gorakhkali Rubber Industry Limited, Udayapur Cement Industry Limited, and Hetaunda Cement Industry Limited. Additionally, Butwal Yarn Factory and Nepal Orient Magnesite Pvt. Ltd. are also included in the list.
Government Committed to Industrial Development and Export Promotion, Says Minister Bhandari: Minister for Industry, Commerce, and Supplies, Damodar Bhandari, stated that the government is making various policy reforms and facilitation efforts for industrial development, domestic production marketing, and export promotion. Speaking at the inauguration of the 10th edition of the Nepal International Trade Fair 2025, which began on Friday, he emphasized the government’s priority on the revival of sick industries, identification of new industrial potentials, and creation of an investment-friendly environment. He mentioned that the government is continuously working on policy reforms as suggested by the private sector and urged Nepali industrialists and entrepreneurs to focus on increasing production and productivity to promote exports.
Patan High Court Issues Interim Order on Reliance Spinning Mills IPO: Patan High Court has issued an interim order to halt the enforcement of the letter that blocked the Initial Public Offering (IPO) process of Reliance Spinning Mills. This comes after the IPO process was suspended in the month of Ashar. The court’s interim order allows the IPO process to proceed. Earlier, Narendra Kumar Rana, the then Chairman of the Securities Board of Nepal (SEBON), had ordered the halt of the IPO process on Ashar 26. SEBON, based on the chairman’s directive, had informed the sales manager to suspend the issuance of securities until further notice.
Kulekhani Hydropower Project Unable to Operate at Full Capacity Despite High Demand: The Kulekhani Hydropower Project in Makwanpur has been unable to operate at full capacity even during periods of high electricity demand. Among the three centers of the project, the Kulekhani III Hydropower Center located in Sanutar, Bhimphedi Rural Municipality, has not been operational at full capacity for over a week due to issues in one of its units. Chief of the Kulekhani III Hydropower Center, Prasanna Mani Tamrakar, informed that one of the two units in the center has been under maintenance since last Tuesday due to a fault in the generator’s plate.
Energy Producers Concerned About Delays in IPO Approvals: Energy producers in Nepal are growing increasingly frustrated with delays in the approval of Initial Public Offerings (IPOs). The producers have been waiting for approval from the Securities Board of Nepal for over two years, and they are now considering protests due to rising costs and increasing impatience. The Independent Power Producers’ Association Nepal (IPPAN) has stated that it hopes the approval process will resume soon, based on a recent assurance from board officials. However, if delays continue, the producers may resort to protests.
Case Filed Against Butwal Firm for Revenue Evasion of Over NPR 30 million: A revenue evasion case has been filed against a firm in Butwal, demanding recovery of over NPR 30 million.
According to the Revenue Investigation Office, Butwal, the case was registered at the High Court, Tulsipur, Butwal Bench on Thursday against Barkat Ali Miya, the proprietor of Bhanja Stores & House located at Radha Krishna Path, Butwal–7. Bibek Ghimire, head of the Revenue Investigation Office, said the firm was found importing and purchasing goods without proper entry in the stock register, selling products without issuing invoices, and failing to record sales transactions properly.
Transmission Line Error in Rahughat Basin Puts Hydropower Projects at Risk: Four hydropower projects in the final stages of construction in the Rahughat Basin are at risk due to faulty transmission lines connected to the central grid. The hydropower projects have constructed a 220 kV capacity transmission line beneath the 132 kV capacity Dandakhet–Rahughat transmission line, leading to technical errors. In Raghuganga Rural Municipality-3, Pipley, the project coming from the north crosses the Dandakhet–Rahughat line going east to west. Technically, the wires of the higher capacity transmission line should be above the lower capacity line. The standard requires a distance of 4.5 meters between the upper wire of the 132 kV line and the lower wire of the 220 kV line at the crossing points.
Sudurpaschim Province Discusses Budget for Fiscal Year 2082/83 with Local Governments: The Sudurpaschim Provincial Government held discussions with local governments regarding the budget for the upcoming fiscal year 2082/83 on Thursday. The discussion was organized in Dhangadhi by the Provincial Support Unit under the Province and Local Governance Strengthening Program, and it included representatives from all nine districts of the province.
On the occasion, Chief Minister Kamal Bahadur Shah highlighted the need to prepare a budget that would be utilized effectively. He emphasized that mistakes in budget formulation are unacceptable, adding, “If we continue to make mistakes in budget preparation and people keep complaining, the federal structure will hold no meaning.”
Ncell Launches ‘Ncell Shop-in-Shop’ in Bhairahawa: Ncell has launched its first-ever ‘Ncell Shop-in-Shop’ in Bhairahawa from Thursday. The shop has been set up in partnership with New Lumbini A2Z Mobile, the official retail distributor of Ncell located in Mailawar, Bhairahawa. Ncell’s Chief of Staff, Steven Rodriguez, inaugurated the Shop-in-Shop. According to the company, customers will be able to access all Ncell services at the shop, similar to those available at Ncell Centers. Customers can obtain SIM cards, recharge, update KYC, re-authenticate SIM ownership, purchase popular packages, upgrade to eSIM, configure internet settings, and more.
Luxury Resort Worth NPR 1 billion to be Built in Nagarkot: A luxury resort worth NPR 1.08 billion is set to be constructed in Nagarkot, a popular tourist destination near the Kathmandu Valley. Capital Hill Resort Pvt. Ltd. plans to invest NPR 1.08 billion to develop the resort in Nagarkot. The company aims to secure NPR 760 million in loans from banks, while the remaining NPR 320 million will be funded by investors. The investment ratio is planned to be 70:30. So far, the company has secured NPR 120 million in loans and raised NPR 63 million from investors.
Koshi Province Set to Open Urea Fertilizer Plant with Green Hydrogen Technology: After 40 years of effort, the dream of establishing a urea fertilizer plant is finally coming to fruition in Koshi Province. Despite repeated failures by the federal government, Koshi Province has taken the lead in establishing a urea plant based on green hydrogen and carbon capture technology. A Memorandum of Understanding (MoU) was signed between Koshi Province’s Investment Authority and Nepal Green Hydrogen Company Private Limited during a two-day investment conference that began on Baisakh 19.
Mountain Energy Nepal Reports 50.45% Increase in Net Profit: Mountain Energy Nepal Limited has reported a 50.45% increase in its net profit for the third quarter of the fiscal year. The company earned a net profit of NPR 46.5 million by the end of Chaitra, compared to NPR 30.91 million during the same period last year. The company’s revenue from electricity sales also grew by 6.05%, reaching NPR 92.27 million compared to NPR 87.01 million during the same period of the previous year.
Securities Board Approves Right Share Issuance for Rapti Hydro Power and General Construction: The Securities Board of Nepal has approved the issuance of right shares for Rapti Hydro Power and General Construction Company. The company will issue right shares in a 1:1 ratio, with the same amount of NPR 61.27 million as its existing paid-up capital. The company had already appointed Muktinath Capital as the sales manager for the right share issuance process.
Sumero Savings and Loan Co-operative Accused of Fraud by Depositors: Depositors of Sumero Savings and Loan Co-operative have accused the co-operative’s management of fraud and organized crime. They claim that their total savings of NPR 15.6 billion have been misappropriated with the collusion of the co-operative’s operators. Former Inspector General of Police, Sarbendra Khanal, stated that the co-operative operators had defrauded millions of depositors and called on the government to take action for the recovery of the funds. He also criticized the government for its failure to take strict action, allowing the fraudsters to operate freely.
Sudurpaschim Tourism Mart Kicks Off in Mahendranagar: The Farwestern Tourism Mart began in Mahendranagar, Kanchanpur, starting Friday. The event, which aims to promote tourism in Farwestern Nepal and across the country, will provide information about various tourist destinations to tourism businesses in India. Organized by the Nepal Tourism Board and Bhimdutt Municipality, the three-day event will focus on showcasing the region’s potential and attracting foreign tourists to the area.
Gold Prices Drop, Silver Prices Increase in Local Market: With a slight drop in international gold prices, the impact has been seen in the local market as well. Compared to Thursday, the price of gold dropped by NPR 1,400 per tola today, while silver saw an increase of NPR 5 per tola. According to the Federation of Nepal Gold and Silver Dealers, the price of gold per tola is set at NPR 190,800 today, while silver is being traded at NPR 1,960 per tola. On Thursday, gold was traded at NPR 192,200 per tola, while silver was sold at NPR 1,955 per tola. In the international market, gold is currently being traded at USD 3,333 per ounce, as reported by international media.
