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.

Leading Hydropower Companies Drive Surge in Market Trading Volumes This Week: Sanima Mai Hydropower led the market this week in terms of trading value, recording transactions worth NPR 3.73 billion. Following Sanima Mai were Ngadi Group, Butwal Power, Radhi Bidyut, Singati Hydro Energy, Universal Power, Chilime Hydropower, Synergy Power, Soaltee Hotel, and Union Hydropower in descending order of value traded. When ranked by the number of transactions, Peoples Power took the lead, followed by Pure Energy, Ngadi Group, Singati Hydro Energy, Sanima Mai Hydropower, Butwal Power, Union Hydropower, Arun Kabeli Power, Synergy Power, and Universal Power.

Surge in US Dollar Value Increases Nepal’s Public Debt Burden: As the exchange rate of the US dollar continues to rise compared to the Nepali rupee, Nepal’s public debt burden has increased accordingly. The monthly report from the Public Debt Management Office shows that the government’s liability grows every month due to the rising cost of foreign debt repayments.

Labour Minister Emphasizes Training for Nepali Workers Based on Job Market Demand: Minister for Labour, Employment and Social Security Sharatsingh Bhandari stressed the need to develop a workforce based on labor market demand. Speaking at a discussion organized by the National Vocational Training Institute in Kathmandu, Bhandari emphasized aligning skills development with global labor market trends.

IT Industry Now Allowed to Invest Abroad Under New NRB Rule: Nepal Rastra Bank (NRB) has opened the door for foreign investment by IT companies through the fourth amendment of the “Foreign Investment and Foreign Loan Management Regulations, 2021.” This is in line with the new law published in the Nepal Gazette on March 31, 2025. IT companies can now invest abroad up to either 50% of their average foreign earnings over the past three years or up to $1 million USD — whichever is lower.

Urea Fertilizer Starts Entering Nepal Through Birgunj Ahead of Paddy Season: As the paddy planting season approaches, urea fertilizer imported by Salt Trading Corporation and Agriculture Inputs Company has started arriving via the Birgunj customs point. Both state-owned entities are responsible for fertilizer supply and have procured urea through global tenders. The supplier for both institutions is Sun International. One rack of urea imported for Salt Trading arrived at the Sirsiya Dry Port in Birgunj on Tuesday.

Govt Awaits Social Media Bill as Platforms Defy Listing Requirements: Despite repeated reminders, major social media platforms have failed to register with the Nepal government, leaving the Ministry of Communication unable to enforce regulation. As the use of social media surges, the government awaits the passage of the ‘Social Media Bill’ for effective oversight. Earlier, the Ministry had issued a directive on December 1, 2023, for the management of social media usage.

Nepal Pays Rs 62.94 billion in Interest on Public Debt This Fiscal Year: By June 14 in the current fiscal year, the government paid Rs 62.94 billion just in interest on public debt. According to the Public Debt Management Office, Nepal’s total public debt has reached Rs 2.654 trillion.

IPPAN Protests as Finance Minister Fails to Scrap ‘Take and Pay’ Provision: IPPAN (Independent Power Producers’ Association Nepal) has announced protest programs after Finance Minister Bishnu Paudel refused to remove the controversial ‘Take and Pay’ provision in power purchase agreements. With Nepal’s electricity generation capacity reaching 3,600 MW and over 80% contributed by the private sector, IPPAN warned that banks are now unwilling to finance 350+ proposed projects totaling 17,000 MW — risking Rs 66 billion in investment.

Domestic Revenue Collection Improves in 11 Months of FY 2024/25: Nepal’s domestic revenue collection has improved in the first 11 months of fiscal year 2024/25. According to the Inland Revenue Department, Rs 498.29 billion in internal revenue was collected by June 14. This marks a 9.33% increase compared to the same period in the previous fiscal year, when Rs 455.75 billion was collected.

Government Cuts Subsidy to Sugarcane Farmers, Raising Concerns in Tarai: With the government’s decision to cut the subsidy provided to sugarcane farmers in the upcoming fiscal year’s budget (2025/26), serious questions have emerged about the future of sugarcane farming in Nepal’s Tarai region. The move has sparked concerns among farmers who rely on the subsidy to sustain their agricultural livelihood.

National Life Insurance Announces 10% Cash Dividend, 5% Bonus Shares: National Life Insurance Company Limited has decided to distribute a 10% cash dividend and 5% bonus shares to its shareholders. The proposal was passed during the company’s 37th Annual General Meeting held in Kathmandu. The company reported satisfactory business performance in the current fiscal year.

Karnali Province Still Lags Behind in Financial Literacy and Inclusion: A workshop on financial literacy and inclusion organized by the Karnali Foundation revealed that residents of Karnali Province are significantly behind in accessing financial services such as opening bank accounts, saving, and using mobile banking. The province currently hosts 507 financial institutions, including ‘A’ class commercial banks.

Industries in Birgunj-Pathlaiya Corridor Hit by Unannounced Power Cuts: Industrialists from the Birgunj-Pathlaiya corridor have complained that unannounced electricity cuts are hampering operations. Hari Gautam, president of the Birgunj Chamber of Commerce and Industry, stated that the industrial corridor is facing an average of over eight hours of load shedding daily.

Farmers in Kailali Begin Paddy Planting Using Borewell Irrigation Due to Water Shortage: Farmers in Kailali district have begun paddy plantation using underground water extracted through borewells, as rainfall has been insufficient. Although the monsoon has entered Nepal early this year, it has not yet reached the Sudurpaschim Province. Scattered rainfall has occurred due to the influence of western and local winds.

Sunsari-Morang Industrial Corridor Plagued by Frequent Power Tripping: Industrialists from the Sunsari-Morang corridor have reported frequent power tripping even during times of adequate electricity supply. The Morang Industry Association issued a statement saying that while Nepal is exporting electricity to India and Bangladesh, domestic industries are forced to endure power cuts due to persistent tripping.

Nepal’s First French Fries Factory Starts Exporting to India: For the first time, a French fries production factory has been established in Nepal. First Choice Foods Pvt. Ltd. has set up the facility in Ward No. 4 of Shuddhodhan Rural Municipality, Rupandehi. The company has already begun exporting its products to the Indian market.

Four New Industries to Operate in Bhairahawa Special Economic Zone: Four more industries are set to begin operations at the Bhairahawa Special Economic Zone (SEZ), including three Nepali-owned and one Indian-owned firm. The industries preparing for launch include Swastik Industries, Data World, Imitation Metal Craft, and Spot Electric, according to SEZ Office Chief and Engineer Sabut Dumre.

Rs 50 million Subsidy Given to Dang Farmers Based on Production: Farmers in the district have received around Rs 50 million in subsidies based on production volume. The incentive, provided by the Veterinary Hospital and Livestock Services Expert Center in Ghorahi, was distributed to five local levels. It rewards dairy and meat producers for selling their goods in the market.

Tax Education Campaign Held for Taplejung Entrepreneurs: A taxpayer education program was held in Taplejung to inform local business owners about taxation and the new finance bill. Organized by the Taxpayer Office in Phungling in collaboration with the Chamber of Commerce and Industry, the session included a briefing by Office Chief Badri Prasad Bhetwal on how to register businesses and file taxes correctly.

Chitwan Farmers in Tears as Locally Grown Onions Fail to Sell: Farmers in Chitwan are distraught as their locally produced onions remain unsold. Consumers prefer imported onions due to their larger size and better appearance, leaving local onions — smaller and often perceived as inferior — without a market. Baburam Dhamala, a farmer from Bharatpur-21, said he had to store onions from 16 kattha of land in sacks as they failed to fetch any price in the market.

Gold Price Drops by Rs 800 Per Tola in Nepali Market: The price of gold in Nepal decreased slightly on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices dropped by Rs 800 per tola compared to Thursday. On Friday, hallmark gold was priced at Rs 194,700 per tola, while silver stood at Rs 2,150 per tola.