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.
Share Market Plunges Over 30 Points on First Trading Day of the Week: The Nepal Stock Exchange (NEPSE) index fell sharply by 32.93 points to close at 2,595.97 on the first trading day of the week. Trading volume was limited, with only NPR 914 million worth of shares exchanged, involving 21.5 million shares sold. Out of all listed stocks, only 23 saw price gains, while 225 shares experienced declines. Joshi Hydropower investors earned the highest profit on Sunday, with a gain of Rs 31.62 per share. Alongside, investors in Sapta Koshi Development earned Rs 50.33 per share, while those holding NIC Asia Debentures made Rs 60 per share.
NRB to Withdraw Rs 60 billion in Deposits on Monday: Nepal Rastra Bank is set to withdraw Rs 60 billion in deposits on Monday (tomorrow). Through a bidding process, the central bank plans to absorb excess liquidity from the banking system. Since the start of the current fiscal year 2024/25, Nepal Rastra Bank has been continuously withdrawing liquidity to manage the surplus funds in the banking sector. According to information provided by Nepal Rastra Bank, due to the increasing deposits, the bank is going to conduct an online auction on Monday to manage and withdraw the excess liquidity.
IPO Approval Row Escalates Between Parliamentary Committees: A dispute has erupted between the Public Accounts Committee (PAC) and Finance Committee over IPO approvals, with PAC directing the Securities Board not to allow IPOs from companies with net worth below Rs 90 per share (December 28, 2023), while the Finance Committee (June 2) countered that such a threshold is not required by law. Though the board had halted IPOs for 1.5 years, it has since approved 12 companies meeting the threshold, yet delays persist even for eligible firms. Reaffirming its stance on June 19, PAC asked for a status report within three days, prompting the board—caught between the two panels—to seek legal advice.
Petroleum Imports Through Birgunj Border Reach Rs 174.9 billion in 11 Months: During the first 11 months of the current fiscal year, petroleum products worth Rs 174.9 billion have been imported through the Birgunj border. The imports include diesel, petrol, liquefied petroleum gas (LPG), aviation turbine fuel (ATF), and furnace oil. Overall, compared to the same period last fiscal year, imports of the five types of petroleum products decreased by Rs 106 million. Although petroleum imports have declined in terms of value, revenue collected from petroleum products increased by 11.66 percent, amounting to Rs 764 million.
Nepal Still Depends Heavily on Food Imports: According to the 2021/22 agricultural census, 62 percent of Nepali households are engaged in agriculture. However, despite this, large quantities of agricultural products continue to be imported from abroad. Customs Department data clearly shows that Nepal is dependent on imports for major crops such as rice, millet, maize, buckwheat, wheat, and barley. According to official figures, in the current fiscal year 2081/82 (2024/25) up to mid-June (11 months), Nepal has spent NPR 5.758 billion on importing only rice, wheat, millet, maize, buckwheat, and barley.
Iran-Israel Conflict Rattles Global Trade, Nepal Also Feels the Heat: With the Russia-Ukraine war still unresolved, the intensifying Iran-Israel conflict has further disrupted global trade. Crude oil prices surged immediately after reports of Israeli attacks on Iranian nuclear facilities, and the upward trend continues. This volatility has already begun affecting Nepal’s market. If the conflict escalates further, it could impact Nepal’s foreign aid, remittance inflows, and overseas employment. Although Nepal’s direct trade with Iran is minimal, imports from Israel are significant, and prolonged instability may also disrupt trade with major markets like the US and Europe.
Physical Infrastructure Ministry Includes Many Small Projects in Next Year’s Budget: Despite the cabinet’s decision and the Finance Minister’s commitment not to include projects costing less than Rs 3 million in the federal budget, the Ministry of Physical Infrastructure and Transport has included 28 projects worth only Rs 100,000 each in next year’s budget. The ministry has allocated budgets for 220 projects mostly priced at Rs 500,000 each under various titles. Most of the projects with budgets of Rs 100,000 and Rs 500,000 are related to the construction of permanent bridges.
Monsoon Works Begin Late on Landslide-Prone Nagdhunga–Muglin Road: Upgrading work has only recently started on the critical Nagdhunga–Muglin highway, a major entry route into Kathmandu Valley, despite the onset of the monsoon. The 94.66-kilometer road section has been heavily damaged, with landslide threats in hundreds of locations making travel difficult. Last year alone, nearly 500 small and large landslides occurred along this stretch during the monsoon, resulting in multiple fatalities and burying several vehicles.
NRB Highlights Economic Challenges in Madhesh Province and Offers Recommendations: Nepal Rastra Bank has pointed out some economic challenges in Madhesh Province and suggested measures to improve the situation. The central bank released a study report on the province, noting the need to formalize economic activities within the province and expand the tax base. It also highlighted that due to a lack of quality hospitals, doctors, and medical equipment, many residents of border areas are compelled to seek treatment in Indian hospitals, which has created a high demand for Indian rupees.
Tourists from 10 Countries Can Now Pay in Nepal via ‘Alipay’ QR Codes: Tourists from 10 countries visiting Nepal have recently been able to make payments here using Alipay QR codes. This facility is believed to help promote tourism in Nepal. “Currently, 1.7 billion users from 70 countries use Alipay,” said Kitipong Kitiprapapong, Country Director of Alipay Plus. “It’s not just a payment method; it essentially encompasses everything.”
Nepal’s Cement Exports to India Plunge by 37% Due to BIS Delay: Nepali cement exports to India have sharply declined due to delays in the renewal of the Bureau of Indian Standards (BIS) certification. In the first 11 months of the current fiscal year, Nepal managed to export only Rs 2.66 billion worth of cement, which is a 37.46% drop (about Rs 1 billion less) compared to the same period last year.
NRNs Can Now Invest in Joint Companies Before FDI Approval: Non-Resident Nepalis (NRNs) can now remit funds for investment in joint venture companies in Nepal without having to obtain prior foreign direct investment (FDI) approval. This provision comes after Nepal Rastra Bank made a fourth amendment to the Foreign Investment and Loan Management Regulations, 2021. The revised rules clarify investment terms, sectoral limitations, and procedural guidelines for foreign investments.
Nepal Begins Exporting 40 MW Electricity to Bangladesh from Mid-June: Since June 15, the Government of Nepal has started exporting 40 megawatts of surplus electricity to Bangladesh as part of a seasonal export agreement that runs until November 15. According to Rajan Dhakal, Director and Spokesperson of the Nepal Electricity Authority (NEA), Nepal is currently exporting a total of 500 to 600 MW of electricity to both India and Bangladesh combined.
Locals Oppose Road Construction in Musikot Without Environmental Assessment: A road meant to connect Upper Chhinggaon via Kalideu in Musikot Municipality–1 is facing local opposition due to the absence of an environmental impact assessment (EIA) and a lack of prioritization in planning. As a result, construction has stalled and remains contested by affected communities.
Mobile Imports Yield Rs 6 billion in Customs Revenue: Nepal has collected approximately Rs 6 billion in customs revenue from mobile phone imports in the first 11 months of the current fiscal year. A total of 1.975 million units worth Rs 32.08 billion in customs value entered the country during this period. By comparison, 1.7 million phones were imported in the same period last fiscal year (2080/81 B.S.), generating Rs 4.90 billion in customs revenue.
Swastik Microfinance Institution Gets Approval to Issue Common Shares (IPO): Nepal Securities Board has granted permission to Swastik Microfinance Financial Institution to sell ordinary shares (IPO). On Ashar 5 (June 19), the board approved the institution to sell 2.31 million ordinary shares worth NPR 231 million. Nabil Investment Banking Limited is managing the share sale for this microfinance group company. So far, the board has allowed 12 companies to issue ordinary shares in the current fiscal year.
Asian Life Insurance to Issue Rights Shares: Asian Life Insurance has received approval from the Securities Board to issue rights shares. The company will issue rights shares in the ratio of 1 share to 0.42 shares (1:0.42). With this approval, the company plans to initiate the rights share issuance starting from Ashar 25 (July 9).
Sales of ‘Dhara’ Mustard Oil Drop by 13%: Saurabh Oil Agro & Industries, the company behind the ‘Dhara’ mustard oil brand, has reported a 13% drop in sales in 2024 compared to 2023. The company had sales worth Rs 2.44 billion in 2022, which declined to Rs 1.95 billion in 2023, and further down to Rs 1.84 billion in 2024.
‘Investment Guru’ Launched to Educate Nepali Investors on the Stock Market: An organization named ‘Investment Guru’ has been formally launched from Saturday with the goal of providing knowledge about the stock market to Nepali investors. At a ceremony held in Kathmandu, Mahanta Thakur, Chairperson of the Loktantrik Samajwadi Party, lit the inaugural lamp, and Chartered Accountant and financial analyst Anupama Sangroula cut the ribbon to officially open the institution. During the program, Sangroula expressed confidence that the organization would help develop educated and aware investors.
Gold Price Increases by Rs 500 Per Tola on Sunday: The price of gold in the Nepali market rose by Rs 500 per tola on Sunday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of hallmark gold, which stood at Rs 194,700 per tola on Friday, increased to Rs 195,200 per tola on Sunday. Similarly, the price of hallmark gold per 10 grams reached Rs 167,355 on Sunday. Meanwhile, the price of silver also increased slightly on Sunday. The silver price, which was Rs 2,150 per tola on Friday, rose to Rs 2,160 per tola on Sunday, according to the federation.
