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 Edges Up Slightly, Hydropower Stocks Continue to Dominate: The stock market saw a slight increase of 0.47 points on Sunday, with the NEPSE index settling at 2,655 points. Although the transaction volume declined compared to the previous trading day, the market still showed promising signs. Sunday’s turnover stood at NPR 11.44 billion, down from NPR 12.51 billion the previous day. Prices of 90 companies rose, while 157 declined. Investor enthusiasm remained strong in the hydropower sector. After leading last week’s gains with a 5.53% increase, the sector climbed another 0.96% on Sunday. Hydropower companies dominated the list of top gainers for the day.
Budget Debate Begins in Parliament After 17 Days Amid Opposition Disruption: Seventeen days after the government presented the national budget for the fiscal year 2025/26, the House of Representatives has finally commenced a theoretical discussion on it today. Although the budget was presented on May 29, discussions could not move forward due to obstructions by the main opposition party. In today’s House session, Finance Minister Bishnu Paudel initiated the debate by proposing a general discussion on the annual estimates of revenue and expenditure.
NRB to Withdraw Rs 40 billion from Market to Manage Excess Liquidity: With liquidity surplus in banks and financial institutions, Nepal Rastra Bank plans to withdraw Rs 40 billion from the market today (Sunday). To manage excess liquidity, the central bank is using deposit collection instruments with a 42-day maturity. Despite persistent liquidity, the central bank has been withdrawing funds at least twice a week, and today’s move continues that trend.
Government Revenue and Expenditure Rise, But Fall Short of Targets: While government income and expenditure have improved slightly in the current fiscal year, a significant gap remains between the set targets and actual performance. According to the Office of the Auditor General, government revenue has increased by 11%, and expenditure has risen by 9% this year.
Governor Poudel Commits to Continuity in Monetary Policies: Governor of Nepal Rastra Bank, Dr. Biswo Poudel, has expressed commitment to maintaining the stability of Nepal’s banking sector and economy. Speaking at a farewell program for outgoing Governor Maha Prasad Adhikari organized by Nepal Bankers’ Association, Dr. Poudel said the existing effective policies and systems of the central bank will largely be continued without major changes.
Nepal Begins Exporting 40 MW Electricity to Bangladesh: Nepal has begun exporting 40 megawatts of electricity to Bangladesh this year. As in previous monsoons, the electricity is being exported via Indian transmission lines. On November 30, 2024, Nepal exported power to Bangladesh for the first time for 12 hours. This year, the Nepal Electricity Authority started the export from midnight on June 15.
Koshi Province Presents Budget of Rs. 35.87 billion: The Koshi Province government has presented an annual revenue and expenditure estimate totaling Rs 35.87 billion for the upcoming fiscal year 2025/26. The budget was tabled in the provincial assembly on Sunday by Ram Bahadur Rana Magar, the Minister for Economic Affairs and Planning of Koshi Province. According to Minister Rana Magar, the proposed budget allocates Rs 18.67 billion, or 52 percent of the total, toward recurrent (operational) expenditures.
Interest Rates on Commercial Bank Deposits Decline Again: Interest rates on deposits offered by commercial banks have dropped again for June/July. Most banks have retained the same rates as in May/June, while some have reduced them further. Fifteen commercial banks are maintaining previous rates starting today, while five—Agricultural Development Bank, NMB Bank, NIC Asia Bank, Kumari Bank, and Everest Bank—have reduced them.
Paddy Plantation Begins in Hills with Onset of Monsoon: As the monsoon begins to advance, paddy planting has started in the hilly regions of Nepal. According to the Nepal Agricultural Research Council (NARC), plantation is actively ongoing in areas with canal irrigation and near streams, particularly in Dolakha, Lamjung, Banepa, and Bhaktapur. “Planting in irrigated areas of the mid-hills usually starts from late May and late June,” said NARC scientist Sushil Subedi. “In the Tarai, plantation typically starts from the late June.
Off-Season Milk Production Sees Unusual Rise: Milk production has increased unusually this year during the off-season months of April to August. Krishna Prasad Aryal, acting chief of the Lumbini Distribution Project, said that due to low market demand, milk had to be sent for conversion (powdering). Despite being a lean period, early rainfall led to abundant green fodder for cows and buffaloes, and a rise in commercial farming is believed to have contributed to this spike in production, Aryal added.
Foreign Patients Now Visiting Nepal for Treatment: Until a few years ago, many Nepalis traveled abroad even for basic medical treatment. But now, foreign patients have started arriving in Nepal for treatment of various diseases. Over the past decade, Nepal’s healthcare sector has made remarkable progress, with new laws and regulations introduced. Experts claim that if these laws are fully implemented and additional resources are mobilized, Nepal could achieve unprecedented advancement in healthcare.
Nepal’s Economy Projected to Reach Rs 6.1 trillion This Fiscal Year:
Nepal’s economy is projected to reach Rs 6.107 trillion in the current fiscal year. According to the annual economic survey by the Bagmati Province government, the province alone is estimated to contribute 36.52 percent to the national GDP. The province’s economic growth rate is expected to reach 5.18 percent in FY 2024/25.
Over 2,000 Foreign Workers Approved for Jobs in Nepal: In the first ten months of the current fiscal year, 2,041 foreign nationals received labor permits to work in Nepal. As per regulations allowing foreign hires due to a shortage of skilled workers, the Department of Labor issued 710 new and 1,331 renewed permits from mid-July to mid-March).
Gwarko Flyover to Open from June 20:
Nepal’s first flyover, located at Gwarko in Lalitpur, is set to open from June 20. With major physical work completed, only blacktopping and installation of lane dividers remain. Spokesperson of the Department of Roads, Engineer Prabha Kumar Jha, said these final tasks will be completed in a few days, paving the way for formal operation.
1.5 km Stretch of Madan Bhandari Highway Still Unfinished: Out of the 120-kilometer Madan Bhandari Highway linking Sindhuli and Hetauda, a 1.5 km section remains unconstructed. Although the road has been operational for two years, there are still problems in over half a dozen places when heading from Sindhuli to Hetauda. The 85 km section falls under Sindhuli and 35 km under Hetauda. Earlier delays were caused by local obstructions, but now, despite local consent, the work has stalled due to budget constraints.
Bagmati Province Completes 147 Road Bridges Since Establishment: Since its establishment in 2015 under the federal structure, the Bagmati Province Government has completed construction of 147 road bridges. This figure is reported in the Economic Survey 2024/25 presented by the provincial government. According to the survey submitted to the Provincial Assembly by Minister for Economic Affairs and Planning Kundan Raj Kafle, this includes 28 suspension/truss bridges.
Revenue Balance in Sudurpaschim Still Negative: Despite improvement in overall budget balance, the revenue balance of Sudurpaschim Province remains negative. Presenting the province’s economic survey, Minister for Economic Affairs Bahadur Singh Thapa said that while the budget balance is 1.07 percent positive compared to the gross provincial product, the revenue balance remains negative by 1.64 percent.
Wild Honey Harvest in Myagdi Falls by 75 Percent: Wild honey production in Myagdi has dropped by 75 percent this year compared to previous years. Local honey hunter Lok Bahadur Paija from Swat, Annapurna Rural Municipality–5, said that while 1,000 liters were collected last year, only 200 liters were harvested this time. His team hunted honey for two days on cliffs at Chhahari and Chhisko Taun.
Golchha Group’s Two Companies Record Rs 17.68 Billion in Trade: Two companies under Golchha Group—Hansaraj Hulaschand & Co and Hulas Auto Craft—have recorded over Rs 17.68 billion in transactions in the first nine months of the current fiscal year. Hansaraj Hulaschand & Co accounted for Rs 11.22 billion, while Hulas Auto Craft reported Rs 6.46 billion in trade.
Daram Khola Hydropower to Launch IPO from June 23: Daram Khola Hydropower Energy’s IPO will open on June 23. The first phase will be for migrant workers and project-affected locals. The company plans to issue 38.33% of its issued capital—worth Rs 1.03 billion—to the general public. Out of 3.95 million shares, 58,390 are reserved for Nepalis working abroad, while 1,030,500 shares are allocated for locals affected by the project.
Trade Tower IPO Allotment Completed: Trade Tower Company’s IPO was allotted on Sunday. Out of over 2.07 million applicants, 329,000 received 10 shares each. The company had issued 3.29 million shares with a face value of Rs 100 per share from May 28 June 3, totaling over Rs 329.65 million.
Gold Price Rises by Rs 7,500 in Five Days: Gold prices have surged continuously for five days, increasing by Rs 7,500 per tola. According to the Federation of Nepal Gold and Silver Dealers Association, gold, which traded at Rs 190,000 per tola last Tuesday, has reached Rs 197,700 today (Sunday). This is Rs 400 more than the previous day’s rate. The record high of Rs 197,900 was seen on April 22. Meanwhile, silver remains steady at Rs 2,165 per tola.
