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 Falls by 9.08 Points; Daily Turnover Surges to Rs 12.51 billion: On the last trading day of the week, Nepal’s stock market index (NEPSE) dropped by 9.08 points, closing at 2,655 points. Despite the decline in the index, the total daily turnover witnessed a notable increase. Compared to the previous day’s turnover of Rs 9.90 billion, today’s trading volume surged to Rs 12.51 billion. A total of 99 companies saw an increase in their share prices, while 149 companies recorded a decline. Among the sectors, the hotel and tourism group posted the highest gain, rising by 2.14 percent. In addition to hotels, the hydropower sector rose by 0.22 percent and the finance sector by 0.89 percent.
Budget Focused on Retaining Nepali Workforce at Home, Says Finance Minister: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel stated that this year’s budget has included programs aimed at retaining Nepali manpower within the country. Addressing a program organized by Media International in Kathmandu on Thursday, he emphasized the need to focus on domestic possibilities while people are looking for opportunities even in outer space. He stressed the need for the right political leadership, vision, and effective implementation to create opportunities within Nepal.
World Bank Regional Director Gupta Calls on Energy Minister Khadka: World Bank’s regional director for South Asia, Pankaj Gupta, called on Minister for Energy, Water Resources and Irrigation, Deepak Khadka at his office in Singha Durbar today. During the meeting, they held discussions on the World Bank’s investment in the hydroelectricity sector of Nepal. During the meeting, Energy Minister Khadka thanked the World Bank for its investment in Nepal’s hydropower projects to date and urged for its continuation in the future.
NRB Forms Committee to Recommend Banking Sector Reforms: Nepal Rastra Bank has formed a special study committee to propose reforms in the banking sector within one month. The committee, headed by former Securities Board Chair Dr. Rewat Bahadur Karki (also a former NRB official), was approved in the central bank’s board meeting on Jestha 21 (June 4). However, official appointment letters to committee members are still pending.
IMF Completes Sixth Tranche Review under Extended Credit Facility: An International Monetary Fund (IMF) team, led by Sarwat Jahan, completed its in-person review of Nepal’s eligibility for the sixth tranche under the Extended Credit Facility (ECF) from May 26 to June 10. Once approved by IMF’s executive board and management, Nepal will receive USD 42.7 million (approximately Rs 5 billion).
Nearly Rs 2 billion Collected in Green Tax from Diesel and Petrol: Nepal Oil Corporation (NOC) has collected Rs 1.91 billion in green tax from diesel and petrol sales by mid-Jestha (May-end) of the fiscal year 2081/82 (2024/25). The corporation has been charging Rs 1 per liter under this tax. Executive Director Nagendra Sah stated that the collection is on track to meet the target of Rs 2.4 billion by year-end.
Provincial Governments Outperform Federal Government in Capital Expenditure: Provincial governments, often criticized in the past for poor budget implementation, have now outpaced both the federal and local governments in capital (development) expenditure. This time, while spending remains ineffective at the federal and local levels, provincial governments have shown relatively significant progress in implementing capital expenditures.
13 Out of 49 Industries Contest NEA’s Power Dues: Of the 49 industries using electricity via dedicated feeders and trunk lines that still owe back payments, 13 have filed appeals against Nepal Electricity Authority (NEA) bills, citing unfair charges. Fifteen industries, including two government-run cement factories, are in the process of clearing dues, while 21 others have neither paid nor sought administrative review, claiming billing errors.
Nepal-Malaysia Labor Ties to Strengthen, Says Minister Bhandari: Minister for Labor, Employment and Social Security, Sharatsingh Bhandari, expressed confidence that labor relations between Nepal and Malaysia will become more sustainable. During a meeting with Malaysia’s Human Resources Minister Steven Sim Chee Keong in Geneva, Bhandari appreciated the contribution of a large number of Nepali workers to the economic prosperity of both countries and stated that the people-to-people relations and mutual understanding have further strengthened bilateral ties.
Govt Approves Toll Fees for Sisnekhola–Nagdhunga Tunnel Road: The Economic and Infrastructure Committee of the Cabinet has approved proposed toll fees for vehicles using the Sisnekhola–Nagdhunga tunnel highway. The road board’s fee proposal was endorsed in Monday’s meeting, which estimates Rs 600 million in annual revenue and Rs 350 million in operating expenses. The decision will be tabled in the next cabinet meeting for final approval.
Kulman Ghising Honored in Sarlahi for Historic Electricity Reforms: Former Executive Director of Nepal Electricity Authority (NEA), Kulman Ghising, has been honored in Sarlahi for his historic contributions to ending load-shedding and managing the country’s power sector. The Civil Felicitation Main Committee, Sarlahi, organized a program in Harivan on Wednesday to honor Ghising, praising his visionary leadership and service. In the program, Ghising stated that although the Nepali public at home and abroad recognized his work, the government had given him a zero rating.
Karnali Province Public Accounts Committee Seeks Detailed Fiscal Data: The Public Accounts Committee of the Karnali Province Assembly, led by Chairperson Bindaman Bista, has demanded detailed reports on revenue, expenditure, and fiscal transfers from the federal government to the province and from the province to local governments. The committee has also requested access to the audit management information system operated by the Provincial Account Controller’s Office.
FNCCI President Meets ILO Director-General in Geneva: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, met with Gilbert F. Houngbo, Director-General of the International Labour Organization (ILO), in Geneva during the 113th International Labour Conference. According to the FNCCI secretariat, they discussed various issues related to labor and employment. President Dhakal called for increased ILO support to help Nepali workers and businesses achieve substantial progress.
Depositors Surround Ministry Demanding Action Against Problematic Cooperative: Depositors of Swarnalaxmi Savings and Credit Cooperative, headquartered in Kalimati, Kathmandu, surrounded the Ministry of Cooperatives and Poverty Alleviation in Bagmati Province, demanding it be declared a problematic cooperative. The affected depositors arrived in Hetauda by rented buses from Kathmandu and warned of intense protests if the cooperative is not immediately declared problematic, alleging long-term neglect by the authorities.
Industrial Capacity Utilization Declines in Gandaki Province: According to Nepal Rastra Bank’s economic activity study, industrial capacity utilization in Gandaki Province fell from 41.26% to 40.85% during the first six months of the current fiscal year. While overall usage dropped, the production of goods such as ointment medicines, instant noodles, beer, dry syrup medicine, cigarettes, mustard oil, and processed milk increased compared to the same period last year.
Broiler Chick Prices Plummet, Hatchery Owners in Trouble: Hatchery entrepreneurs raising broiler chicks are in trouble due to a sharp drop in chick prices. The drop is attributed to low market demand. According to the entrepreneurs, it costs around Rs. 55 to raise a single broiler chick until sale. For nearly two months, hatchery operators have been forced to sell each chick for just Rs. 15–20. Some have even reported being unable to sell them at all.
Illegal Riverbed Mining Overtakes Mechi Riverbank: The area near Bahundangi Nature Park in Mechinaga, Jhapa has been overtaken by mounds of illegally extracted sand and gravel, with more than half a dozen such stockpiles visible. Although Mechinagar Municipality issued a notice on Jestha 14 (May 28) halting extraction from nine designated riverbeds, excavation has continued beyond the authorized limit.
Cost of DoubleTree by Hilton Hotel Project in Maharajgunj Reduced: Lalchan Group’s five-star hotel project “DoubleTree by Hilton” in Maharajgunj has revised its total investment down from Rs 3.9 billion to Rs 2.82 billion after cancelling plans to purchase additional land. The hotel will now be built on the existing land without further expansion.
Tehrathum Power Company to Issue Rights Shares from June 30: Tehrathum Power Company Limited is set to issue and open sales of rights shares from Asar 16 (June 30). The company plans to issue 100 percent rights shares based on its current paid-up capital, offering one new share for every existing share.
Swabalamban Microfinance Puts Founders’ Shares on Sale: Swabalamban Microfinance Financial Institution has placed a large number of its founder shares for sale. The institution has put up 53,000 founder shares at a rate of Rs. 435 per share. In the first phase, the sale is being offered to existing founder shareholders. Shares that remain unsold after that will be open to the general public and other investors.
Gold Price Soars, Silver Drops Slightly in Local Market: Since last Tuesday, the price of gold has been continuously increasing in the international market. Compared to Wednesday, the price of gold in the local market has risen by Rs. 1,600 per tola today, while the price of silver has declined by Rs. 15. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of one tola of gold today is fixed at Rs. 192,900, while silver is being traded at Rs. 2,150 per tola.
