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 Decline Continues This Week: The downward trend in the share market did not stop on last trading day of the week. Following four consecutive days of losses, the NEPSE index fell by 8.41 points on Thursday. Compared to the previous day, NEPSE dropped by 0.32% to close at 2,611.85 points. Earlier in the week, the index had declined by 12.04 points on Thursday, 12.53 on Sunday, 14.87 on Tuesday, and 13.96 on Wednesday. On Thursday, 82 companies saw their share prices rise, 164 companies experienced a decline, and one company’s price remained unchanged. A total of 78,493 trades resulted in shares worth NPR 708.33 million being transacted, with 17.42 million shares changing hands.
Supreme Court Rejects Petition Challenging Bishwo Poudel for potential Governor role: A writ petition challenging the qualifications of Dr. Bishwo Poudel as potential Governor of Nepal Rastra Bank was dismissed by the Supreme Court. The petitioners, advocates Bishal Thapa and Prativa Upreti, had filed the petition on Tuesday, but it was not registered. After review, the Supreme Court administration rejected the petition against Poudel. Advocate Anant Raj Luitel informed the media on Friday morning that the petition was dismissed by the Supreme Court administration.
Nepal Insurance Authority to Adopt NRB’s Operational Framework: Nepal Insurance Authority has decided to align its regulatory and investigative functions with the operational framework of Nepal Rastra Bank starting from the new fiscal year. At the Authority’s 57th anniversary, Chairman Sharad Ojha announced a new plan to implement regulatory and research-related tasks in a manner similar to the Nepal Rastra Bank’s existing system. Currently, the Insurance Authority regulates through multiple separate directives, but Ojha stated that these will be repealed and replaced by a single unified directive, similar to Nepal Rastra Bank’s approach which consolidates all its instructions into one comprehensive directive.
Surplus Funds Deposited by Banks in Nepal Rastra Bank Increase Again: Due to a slowdown in loan investments relative to deposits, banks have started to increase surplus funds deposited with Nepal Rastra Bank again. According to Nepal Rastra Bank statistics, the amount currently deposited stands at NPR 3.41 trillion. Nepal Rastra Bank uses various monetary tools to withdraw surplus funds from banks, and when capital is low, it takes measures to increase liquidity in the banking system.
NEA Executive Director Shakya Highlights Power Supply Challenges Due to Transmission Line Limitations: Executive Director of Nepal Electricity Authority (NEA), Hitendra Dev Shakya, stated that despite the increasing power generation, the expansion of transmission line networks has not kept pace, affecting the electricity supply. During a press conference held at NEA’s Syuichatar substation on Friday, Shakya explained that if the transmission line network is not expanded rapidly, even minor incidents like the one that occurred on Thursday night could disrupt power supply (tripping). He further emphasized that if the expansion of the transmission line network is not accelerated, it could lead to severe issues, crises, and accidents.
Auditor General Questions Tax Exemptions and Multiple Benefits Given to Export Industries: The Office of the Auditor General, in its 62nd annual report, has raised concerns over tax exemptions and multiple benefits provided to export industries. Besides tax incentives, cash grants are also given, allowing single industries to receive various types of facilities. The report suggests a need to review and reassess these benefits. According to the fiscal law every year, export industries receive special exemptions on customs value-added tax and income tax.
Listed Life Insurance Companies’ Profits Increase by About 11%: According to the publicly listed companies’ third quarterly financial report, 12 listed life insurance companies earned a total net profit of NPR 4.54 billion from mid-July to mid-March. Last year during the same period, the profit was NPR 4.09 billion. Nepal Life Insurance Company earned the highest profit, NPR 650 million over nine months. Asian Life Insurance saw the largest profit growth of 59% during this review period.
Auditor General Questions Local Officials for Employing Personal Secretaries and Advisors: The Auditor General’s Office has raised questions about local officials employing personal secretaries and advisors, despite no provisions for such posts and payments in the Local Officials and Members’ Benefits Act issued by the Provincial Assembly. It found that 152 local bodies have hired advisors and personal secretaries. In the fiscal year 2080/81, payments totaling NPR 81.23 million were made to these posts, prompting questions from the Auditor General.
Status of Government’s Transformative Projects Found to be Unsatisfactory: The condition of government-identified transformative projects is reported to be quite poor. The government has listed several key road projects as transformative, including the Galchhi-Trishuli-Mailung-Syafrubesi-Rasuwagadhi Road, Narayanghat-Butwal Road, Kanchanpur-Kamala Road, Kankadbhitta-Laukahi Road, Butwal-Gorusinge-Chandrauta Road, and Kamala-Dhalkebar-Pathlaiya Road. These 15 projects are intended to achieve national goals and contribute significantly to Nepal’s overall economic and social development. However, according to the 62nd Annual Report of the Auditor General’s Office, the status of all six major listed projects is unsatisfactory.
Government Officials Exploiting Legal Loopholes on Tax Exemptions: Officials in government positions have exploited legal loopholes in tax exemption laws, causing substantial financial losses to the state. The 62nd report by the Office of the Auditor General reveals that tax exemptions were unlawfully granted to individuals on products where exemptions are not permitted, leading to corruption. For instance, Section 11(3)(c) of the Income Tax Act, 2058 BS, allows a 15% tax exemption on listed manufacturing industries in the securities market. However, according to Section 24 of the Industrial Enterprises Act, 2076 BS, except for fruit-based brandy, cider, and wine industries, other alcoholic beverage industries are not eligible for tax exemptions.
Immigration Office in Korala Remains Closed Long After Opening: Although Home Minister Ramesh Lekhak inaugurated the immigration office in Korala on 14th Kartik, 2081 B.S. the office ceased functioning a few days after opening and has not resumed services as of Jestha. The prolonged closure has negatively impacted local traders. The Nepal-side immigration office remains locked, with no clear timeline for reopening. Essential facilities such as customs and animal and food quarantine have yet to be established to operate the border checkpoint.
Koshi Province Minister Launches Campaign to Clear Pending Advances: Koshi Province’s Physical Infrastructure Development and Health Minister Bhupendra Rai has started a campaign to clear pending advances in the ministries and subordinate offices. In coordination with the Auditor General’s Office, Minister Rai initiated discussions with staff under two ministries. Secretary Ashok Kumar Sah directed all office chiefs and accounting heads to ensure the clearance of advances. State Minister Bhumi Rajbanshi highlighted that Koshi Province lags behind four other provinces regarding pending advances and instructed adherence to the Expenditure Act, rules, and standards.
Construction Progress Slow or Halted in 364 Projects; Work Still Incomplete: According to the 62nd annual report of the Auditor General’s Office, construction progress on 364 projects remains slow or completely halted despite contracts being awarded and work starting. Among these, some projects are halfway completed, some are near completion, and some show no progress. Up to fiscal year 2080/81, out of 2,116 ongoing contracts by the Department of Roads and subordinate bodies, 355 projects valued at NPR 3.01 billion remain unfinished.
NEA’s Underground Cable Project in Kathmandu Faces Repeated Deadline Extensions: The Nepal Electricity Authority (NEA) has not yet completed the underground electric cable installation in the Kathmandu Valley, which began in Falgun 2076 BS (February/March 2020). Despite repeated deadline extensions, the project remains unfinished. The 62nd report by the Office of the Auditor General (OAG) has recommended ending the cycle of deadline extensions to ensure the project is completed within the scheduled time and budget.
Two Government Cement Industries Shut Following Cabinet Decision to Privatize: Following a cabinet decision on 15th Baishakh (late April) to privatize two running government-owned cement industries, both factories have now been shut down. The management closed Udayapur and Hetauda cement factories to facilitate the privatization process. Hetauda Cement was shut down on 20th Baishakh, five days after the cabinet decision, while Udayapur Cement ceased production from Sunday after exhausting its existing coal stock. Both factories, which have stopped clinker production, remain open for cement sales.
Biogas from Jhapa to be Supplied to 1,000 Homes via Pipeline: Biogas produced in Sukedanda, Kankai-2, Jhapa, will be supplied via pipeline to Surunga market and approximately 1,000 nearby homes. Following Prime Minister KP Oli’s directive, the Nepal Oil Corporation (NOC) has initiated a feasibility study to invest in pipeline-based gas distribution. Dr. Chandika Prasad Bhatta, Executive Director of NOC, stated that the Prime Minister instructed the government to create infrastructure to bring locally produced biogas to homes in Jhapa. Currently, due to lack of necessary infrastructure, a significant amount of biogas is going to waste.
Tourism Entrepreneurs Thapaliya and Bhatta Appointed to Nepal Tourism Board: Kumar Mani Thapaliya and Narendra Dev Bhatta, both tourism entrepreneurs, have been appointed as members of the Nepal Tourism Board. On Thursday, the Minister for Culture, Tourism and Civil Aviation, Badri Prasad Pandey, appointed them to the board’s management committee. Thapaliya and Bhatta were given appointment letters for a three-year term on Friday. They fill the vacancies left by Milan Devkota and Madan Acharya whose terms had expired, according to the Ministry of Tourism.
eSewa Money Transfer Completes Five Years of Successful Operation: eSewa Money Transfer has completed five successful years since its establishment. The company has prioritized digital remittance from the start, providing services that allow Nepalis in over 200 countries worldwide to send money to Nepal conveniently. Over these five years, eSewa Money Transfer has partnered with more than 100 international remittance companies, building a strong and trusted global network.
Bhimdatta Municipality of Kanchanpur Has Highest Financial Irregularities in Sudurpashchim Province: Among 88 local levels in Sudurpashchim Province, Bhimdatta Municipality in Kanchanpur district recorded the highest financial irregularities, with NPR 150.168 million irregularities. According to the 62nd Audit Report by the Office of the Auditor General, audits of the 88 local levels covering NPR 35.318 billion revealed a 4.25% irregularity rate in Bhimdatta. In terms of percentage, Mohanyal Rural Municipality in Kailali had the highest irregularities at 7.23%, with NPR 972.759 million audited and NPR 73.673 million irregularities reported.
Hyundai Nepal Officially Launches New Electric Vehicle ‘Creta EV’ in Butwal-Bhairahawa: Laxmi Intercontinental Pvt. Ltd, the official distributor of Hyundai vehicles in Nepal, has launched the new electric vehicle (EV) version of Hyundai Creta in the Butwal-Bhairahawa region. The company reported unprecedented participation and enthusiastic response during the launch event. The arrival of Creta EV is expected to help customers who are hesitant about electric vehicles make clearer purchasing decisions. Hyundai Nepal has already started manufacturing the Creta ICE (internal combustion engine) petrol model locally.
Gold Price Rises by NPR 3,000 per Tola: The price of gold increased by NPR 3,000 per tola on Friday, reaching NPR 184,800 per tola for hallmark gold, according to the Federation of Nepal Gold and Silver Traders Association. On Thursday, the price stood at NPR 181,800 per tola. Meanwhile, the price of silver also increased from NPR 1,925 to NPR 1,945 per tola on Friday.
