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 Highest Turnover in Over 100 Days: Nepal’s stock market witnessed the largest turnover in over three months. On the last trading day of this week, transactions totaled NPR 12.51 billion, close to the NPR 12.94 billion recorded 101 days earlier on March 4, 2025. According to NEPSE, transactions of listed companies alone amounted to NPR 12.06 billion, with 25.77 million shares traded.
Finance Ministry Bends on Controversial ‘Take and Pay’ Power Purchase Policy: The Finance Ministry has agreed to resolve the controversial ‘take and pay’ clause in hydropower purchase agreements. Initially adamant, the ministry showed flexibility after requests from energy promoters and the Ministry of Energy. Budget point 227 states that electricity purchase agreements will be made to balance power production and consumption. It specifically mentions that “take and pay” agreements will be applied to run-of-the-river projects.
Government to Focus on Tunnel Roads and Overpasses in FY 2025/26: The government has announced a policy to prioritize the construction of modern infrastructure such as tunnels, expressways, and overpasses in the upcoming fiscal year2025/26. However, the allocated budget for tunnel construction is not adequate. Compared to the current fiscal year, the budget has been slashed by 17%. The Ministry of Physical Infrastructure and Transport has allocated NPR 695.3 million for tunnel development programs for the upcoming year.
Parliament Relaxes Penalty on ‘Free Visa’ Fraud by Manpower Agencies: Both the House of Representatives and National Assembly have adopted a lenient approach regarding penalties for manpower agencies charging money for ‘free visa’ jobs. The subject committees of both houses have proposed reducing fines below those initially suggested in the amendment bill. Amendments have been proposed to several clauses of the Foreign Employment Act, 2064, through a new bill to revise various Nepal Acts.
Government Tables New Cybersecurity Bill to Scrap Controversial Electronic Transactions Act: The government has registered a new Information Technology and Cyber Security Bill in Parliament that will replace the controversial Electronic Transactions Act. The old law, which had provisions widely criticized for being misused — particularly Section 47 — drew public concern over freedom of expression on social media. The Ministry of Communication and Information Technology has now introduced this new bill, which would nullify the older act upon its passage.
Insurance Claims Under Bargaining Pressure, Raising Payout Concerns: A trend of bargaining during insurance claims is growing in Nepal. Insured individuals often demand double or triple the actual compensation amount, assuming companies will negotiate downward. This has made claims more complex and time-consuming. For instance, a policyholder expecting a payout of NPR 10 million might demand NPR 20 million upfront, anticipating a reduction by the insurer.
Industrial Land Policy Backfires as Private Sector Shows Little Interest: A government plan to develop industrial infrastructure has become a burden after private investors showed little interest, even though they had earlier complained about high land prices. The government had pushed for the development of industrial zones and special economic areas. However, with limited interest, it is now forced to reduce rental rates to attract investment, leading officials to conclude that the private sector’s previous demands were primarily about acquiring cheap land.
Habib Bank Begins Process to Exit Himalayan Bank Ownership: Pakistani bank Habib has once again initiated the process to exit from its ownership in Himalayan Bank. Although it had sought to exit long ago, the process had stalled due to lack of support from regulatory authorities. Now, the bank has formally sent a letter requesting to begin the sale of its founder shares. Following this, Himalayan Bank has started the process to sell those shares. Currently, Habib Bank owns 28,012,447.45 units of founder shares in Himalayan Bank.
Ncell Says 5G Rollout Nationwide Will Cost NPR 46 billion: While the government has proposed nationwide expansion of 5G in its new budget, telecom company Ncell has stated that such a rollout will cost at least NPR 46 billion for a single service provider. Ncell revealed this estimate during its program titled “Building Sustainability: Digital Tomorrow.”
NPR 480 million Allocated for Local-Level Road Projects: The Ministry of Industry has allocated NPR 480 million for the construction of roads at the municipal level in the new budget presented by Finance Minister Bishnu Prasad Paudel. Of the 16 road projects at the local level, seven projects worth NPR 210 million are in Baitadi district alone.
Only 78 Entrepreneurs Receive Startup Loans So Far This Fiscal Year: Out of 661 entrepreneurs selected for startup loans this fiscal year, only 78 have received funding amounting to NPR 82.5 million. The Industrial Enterprise Development Institute (IEDI) reported that 97 individuals have opened bank accounts to receive the loans. The IEDI had invited project proposals on Bhadra 11 and received 5,158 applications both online and in-person. The institute aims to disburse loans to all selected entrepreneurs by the end of Asar.
Government Allocates NPR 52.77 billion to 109 Local Units in Lumbini Province: Through the budget for fiscal year 2025/26, the federal government has allocated NPR 52.77 billion to 109 local levels across 12 districts of Lumbini Province. This includes financial equalization grants, conditional grants, supplementary grants, and special grants. Rupandehi received the highest allocation, while Rukum East received the least.
Gandaki Province Spends Only 46.7% of Budget by Late Jestha: Gandaki Province has spent only 46.7% of its allocated budget by the second week of June in fiscal year 2024/25. Development works were delayed due to the government’s failure to start on time. With only a few days left in the fiscal year, the Province Account Controller’s Office reported expenditures of NPR 15.4 billion out of the total budget.
Postal Highway Project Less Than Half Complete in Over Five Years: A road project under the Postal Highway, which was to be completed in three years, has achieved less than 50% progress even after five and a half years. Bajraguru Kanchharam JV was awarded the contract on Kartik 29, 2076, to blacktop and widen a 20 km stretch from Banghusri to Gadhwa in Deukhuri, Dang. The physical progress is only 45% and financial progress 40%, said project chief Lila Bahadur Bhandari.
Rahughat Hydropower Project Misses Deadline Again: The 40-megawatt Rahughat Hydropower Project in Myagdi, promoted by NEA subsidiary Raghuganga Hydropower, has failed to complete construction within its second extended deadline. Indian civil contractor Jaiprakash Associates (JP) had signed a contract worth NPR 6 billion on November 22, 2017, with a target to finish in 45 months. After a second extension, the deadline now ends on June 27, 2025, but the project still remains incomplete.
Jumla Farmers Becoming Self-Reliant as Indigenous Crops Gain Market: Farmers in Jumla, who previously stored traditional crops at home without income, are now becoming self-reliant as those crops begin to sell in the market. With goods now being exchanged in rupees, income has increased. Previously, farmers couldn’t save regularly in cooperatives due to lack of cash, often having to take loans to pay installments. This changed when Chandannath Cooperative began exchanging traditional crops for rupees. Since February 2017, the cooperative has been labeling and packaging local products and selling them through a mini market.
IPO Application Opens for Him Star Power Company: Applications for the IPO of Him Star Urja Company opened today, Friday. In the first phase, the IPO is targeted at Nepalis working abroad and local residents affected by the project. Only after this phase will it be available to the general public. The company plans to issue 30% of its total capital of NPR 373 million to the public. Of this, 186,500 units are reserved for project-affected locals and 93,250 units for migrant workers.
Om Hospital Ordered to Pay NPR 5.68 million Compensation for Medical Negligence: The Consumer Court has ordered Chabahil-based Om Hospital to pay NPR 5.68 million in compensation for serious medical negligence during the treatment of Harihar Prasad Gautam. The joint bench, led by court chair Ram Prasad Sharma and members Gehendra Raj Regmi and Anand Raj Pokharel, found both the hospital and two involved doctors liable for the damages.
Gold Price Surges by NPR 4,200 in a Single Day: On Friday, the price of gold in Nepal’s market surged by a massive NPR 4,200 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of hallmark gold reached NPR 197,100 per tola today, up from NPR 192,900 the previous day. Silver prices also increased, rising by NPR 15 per tola to reach NPR 2,165.
