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 Index Rises by 4 Points on Monday: The Nepal Stock Exchange (NEPSE) index saw an improvement of 4 points on Monday. After a continuous decline since last Tuesday, NEPSE experienced a rise on Monday. Although the NEPSE index improved, the trading volume decreased. The index started the day at 2595.97 points and closed 4.78 points higher at 2600.76. Along with the NEPSE index, the Sensitive Index also showed an upward trend on Monday.

Energy Minister Announces Revision of ‘Take and Pay’ Provision: Minister for Energy, Water Resources and Irrigation Deepak Khadka informed the House of Representatives that the controversial ‘Take and Pay’ provision in the budget will be revised. Responding to lawmakers’ questions during Monday’s session, he said a letter requesting revision had already been sent to the Ministry of Finance on Jestha 27 (June 10).

Three Decades Later, New Guidelines to Open Power Trade for Private Sector: The government is finally moving forward with the development of electricity trade guidelines nearly three decades after enacting the Electricity Act. Once approved, the guidelines will allow not just the Nepal Electricity Authority (NEA), but also private energy promoters, power trading companies, and large electricity consumers to use transmission lines for buying and selling electricity.

Banks Seek Relaxation in Provisioning Rules Amid Profit Decline: Excessive and untimely provisioning requirements have led to declining profits for banks in Nepal. Investors and bankers are now calling for more flexible legal arrangements, similar to those in India and Bangladesh, to manage potential losses effectively without hurting profitability.

Energy Entrepreneurs Protest ‘Take and Pay’ Clause in Budget: Energy entrepreneurs have taken to social media demanding the removal of the ‘Take and Pay’ provision included in the new budget for electricity procurement. They have publicly appealed to the Prime Minister, Finance Minister, Energy Minister, and NEA Managing Director to withdraw the clause from the Power Purchase Agreements (PPAs).

Bangladesh Power Deal with Nepal on Hold Amid Political Uncertainty: Bangladesh’s plan to purchase 500 MW of electricity from Nepal’s Upper Karnali Hydropower Project for 25 years is now in limbo. The deal has been suspended after Bangladesh’s interim government decided to freeze all agreements signed under special authority provisions.

Commercial Banks Exceed Lending Limits in Hydropower Sector: Commercial banks have surpassed the regulatory lending threshold in the hydropower and energy sectors. While other sectors are witnessing slow credit demand, both investment and loan demands in hydropower have surged, largely due to ongoing project construction, according to banking officials.

Stakeholders Criticize Cyber Security Bill for Being Incomplete: Stakeholders have raised concerns that the newly registered Information Technology and Cyber Security Bill, 2082, falls short of addressing current challenges. Introduced by Minister for Communication and Information Technology Prithvi Subba Gurung, the bill classifies all cyber-related offenses as criminal and proposes strict penalties.

Insurance Payouts for Royalist Protest Damages Remain Low: Only Rs 15.8 million out of the Rs 42.1 million in claims filed for damages during the royalist protests on March 28 has been paid out. According to the Insurance Board, as of mid-June, only about one-third of the total insurance claims have been settled.

Only Four Industrial Villages Established Despite National Plan for 120: Although the government pledged to establish 120 industrial villages across all seven provinces, only four have been set up over six years. These are located in Aanbukhaireni (Tanahun), Arjunchaupari (Syangja), Madane (Gulmi), and Mellekh (Achham), according to the Ministry of Industry, Commerce, and Supplies.

Nepal Imports Over 4.5 million Umbrellas Annually: With the onset of monsoon, umbrella use has surged across Nepal. However, despite its cultural and practical significance, the country heavily relies on imports. Statistics show that more than 4.5 million umbrellas are imported into Nepal each year.

Amlekhgunj–Lothar Petroleum Pipeline Project Gains Momentum: Construction of the second-phase petroleum pipeline from Amlekhgunj in Bara to Lothar in Chitwan (a 62-kilometer stretch) has picked up speed. Following multiple rounds of discussions between Nepalese and Indian officials, the Indian Oil Corporation (IOC) has urged the Nepali side to expedite land acquisition to prevent delays.

Mechi Customs Office Collects Rs 14.43 billion in Revenue in 11 Months: Mechi Customs Office collected Rs 14.43 billion in revenue during the first 11 months of FY 2024/25, achieving 91.56% of its target. The office had set a goal of Rs 15.77 billion for the period, said Information Officer Ishwar Kumar Humagain.

FNCCI Koshi Committee Submits 20-Point Suggestion for Monetary Policy: The Koshi Province Committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) submitted a 20-point recommendation to Nepal Rastra Bank for the upcoming 2025/26 monetary policy. The suggestions emphasize making bank interest rates transparent, predictable, and criteria-based.

Pokhara Metropolitan Unveils Rs 8.35 billion Budget for FY 2025/26: Pokhara Metropolitan City has announced a budget of Rs 8.35 billion for fiscal year 2025/26, an 11% increase from the previous year. The budget emphasizes infrastructure development, tourism promotion, and commercial agriculture.

Record Dog Chew Exports Put Nepal on the Global Map: Nepal has seen a record-high export of dog chews in the first 11 months of the current fiscal year. Produced as nutritious treats and toys for dogs, Nepal’s dog chews have successfully gained recognition in international markets, boosting the country’s export profile.

Dozens of Industries Shut Down in Salyan Due to Business Stagnation: Industrial activity is sharply declining in Salyan, with 40 industries closing in the current fiscal year 2024/25 alone. Local entrepreneurs say small and cottage industries are failing due to a lack of prioritization of local products and inadequate business promotion efforts.

37.5 MW Chimkhola–Mangle–Rahughat Hydropower Project Begins Test Production: The Chimkhola–Mangle–Rahughat Hydropower Project in Raghuganga Rural Municipality in Myagdi has started test electricity generation. Developed by Tudi Power Company Ltd, the project completed structural testing of its dam, desander, and tunnel before initiating production.

Daram Khola Hydropower Opens IPO for Locals and Migrant Workers: Daram Khola Hydro Energy Ltd has opened its IPO from Monday for locals affected by the project and Nepalis working abroad. The company received approval to issue 3.95 million shares worth Rs 395 million, accounting for 38.33% of its Rs 1.03 billion capital.

BYD Unveils New Dolphin EV Model in Nepal: BYD’s official distributor in Nepal, Cimex Inc. Pvt. Ltd., has launched the upgraded Dolphin-025 electric vehicle. The new model comes with several enhanced features aimed at eco-conscious urban users, further expanding BYD’s presence in the Nepali EV market.

eSewa and Touch ‘n Go Launch Digital Remittance Partnership: Nepal’s leading digital remittance company eSewa Money Transfer has entered into a major partnership with Malaysia’s top digital payment provider, Touch ‘n Go eWallet. The agreement will allow hundreds of thousands of Nepali workers in Malaysia to contribute directly to Nepal’s Social Security Fund (SSF) through digital channels.

Lumbini Palace Resort to Expand with Rs 1 billion Investment: Lumbini Palace Resort has announced an additional investment of Rs 1.085 billion to expand its capacity. The resort, which currently operates with 31 rooms, aims to upgrade to a five-star hotel by 2028 as part of its long-term expansion plan.

Prabhu Insurance to Distribute Bonus Shares and Cash Dividend: Prabhu Insurance has announced dividends from last fiscal year’s profits. As per the board decision on Sunday, shareholders will receive 18% bonus shares and a 0.9474% cash dividend for tax purposes.

Gold Price Stable, Silver Up by Rs 10: Gold prices remained unchanged on Monday, trading at Rs 195,200 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. However, silver saw a slight increase, rising by Rs 10 to trade at Rs 2,170 per tola.