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 Declines by 2.79 Points on Sunday: The NEPSE Index declined by 2.79 points on Sunday, marking its sixth straight day of downturn, settling at 2609 points. Despite the drop in the index, the trading volume surged, reaching Rs 8.5 billion, compared to Rs 7.08 billion on the previous trading day. 100 companies saw gains, while 145 declined, and one remained unchanged. The ‘Others’ group recorded the highest growth of 4.19%, driven by significant price hikes in Nepal Reinsurance and Himalayan Reinsurance. The Microfinance and Hotel & Tourism sectors increased by 1.22% and 1.11% respectively. All other sectors saw declines, with the Trade sector experiencing the largest drop of 2.68%.
Social Security Fund Collects Over Rs 79 billion from 2.2 million Contributors: The Social Security Fund has collected billions from contributors. The fund has collected Rs 79.42 billion from 2.13 million contributors. More people going for foreign employment have joined the fund compared to those working within Nepal. According to the statistics made public by the fund, 1.632 million workers who went for foreign employment are affiliated with the fund. Currently, 580,000 workers employed in 20,500 formal sector institutions have joined the Social Security Fund.
Federal Government Violates Budget Transfer Law: Legally, budget transfers are not permitted in the first three months of the fiscal year. The law also prohibits transferring funds from one budget heading to another. However, the federal government has been found violating these laws by transferring budgets from one heading to another from the first quarter itself. The 62nd report of the Auditor General shows that the issue of budget transfers has spread from the federal level to local levels. According to the report, the federal government has transferred NPR 250 billion, provinces have transferred NPR 3 billion, and local governments have transferred NPR 4 billion, all in violation of the law.
NRB to Withdraw Rs 24 billion from the Banking System on Sunday: Due to excess liquidity in the market recently, Nepal Rastra Bank (NRB) has been continuously raising deposit amounts from the banking system. NRB has set the bidding time for 3 PM on Sunday for 21 days. Banks and financial institutions can bid for a minimum of Rs 100 million and in multiples of Rs 50 million, up to the total announced amount. According to NRB, the principal and interest payments are scheduled for Jestha 25 (mid-June).
Nepal Electricity Authority Blames Poorly Planned Grid Development for Frequent Power Cuts: The Nepal Electricity Authority (NEA) has stated that the frequent power cuts are due to unplanned development of the power grid. In a press release distributed to journalists on Sunday, the NEA mentioned that the issue of tripping has persisted for a long time. The NEA stated that even during the tenure of Kulman Ghising, tripping problems were prevalent during pre-monsoon and monsoon seasons due to storms and heavy rainfall.
PAC Forms Subcommittee to Investigate Gautam Buddha Airport Irregularities: A subcommittee under the Public Accounts Committee of the House of Representatives has been formed to investigate irregularities at Gautam Buddha International Airport. The committee, previously led by UML MP Yogesh Bhattarai, is now chaired by Congress MP Manju Khan. Bhattarai, who also served as Minister of Culture, Tourism, and Civil Aviation, had faced criticism for submitting a preliminary report without proper investigation into corruption. He resigned from the role following mounting questions over his handling of the probe.
Customs Offices Overwhelmed by Surge in EV Imports: The Rasuwagadhi Customs Office is currently facing a severe space crunch due to the massive surge in electric vehicle (EV) imports in recent months. Similarly, the Tatopani Customs Office in Sindhupalchok has run out of space to park imported vehicles from China. The customs office is urging importers to clear their vehicles as soon as possible. According to customs officials, if the import trend of EVs continues at the current rate, there will be a need to find new parking spaces. The Rasuwagadhi, Tatopani, and Bhairahawa checkpoints have all reported significant increases in EV imports recently.
Government to Revive MP Development Fund and Constituency Infrastructure Development Fund: The government has decided to revive the MP Development Fund and the Election Area Infrastructure Development Fund that were operated in the past. To “ensure the ownership of all MPs” and “allocate budget to every electoral constituency,” the government is planning to allocate funds for the proposed programs at the initiative of MPs. This time, the budget for election-area-focused programs will also be significantly increased. In the past, projects worth up to Rs 60 million were allocated for each constituency, but now the amount has been increased to Rs 220 million.
Nepal Share Investors Association Submits Suggestions for Stock Market Reforms: The Nepal Share Investors Association has presented suggestions to the Ministry of Finance for stock market reforms. The association recommends increasing public shareholding in companies where the Nepal government holds a majority stake and allowing public companies established by the private sector to raise capital through pre-IPO and crowdfunding under the supervision of the Nepal Securities Board. They also suggest that capital gains tax from the stock market should be considered final and appropriately reflected in tax laws.
Consumer Committees Found Selling Contracts to Construction Contractors: It has been found that consumer committees are selling contracts to construction contractors. Typically, small projects that rely on public participation and do not require heavy machinery are managed locally through consumer committees formed at the community level. However, violating laws and regulations, these consumer committees have been taking contracts for projects and then selling them to construction contractors. According to the 62nd Annual Report of the Auditor General, just last year, consumer committees sold contracts for 1,718 projects to construction contractors.
Inflation on Goods and Services Decreases in Chaitra of Fiscal Year 2081/82: The Nepal Rastra Bank has released a report indicating a decrease in the inflation rate for goods and services in Chaitra of the current fiscal year 2081/82 compared to the same period in the previous fiscal year. According to the central bank’s report, the inflation rate, which was 4.64% in Chaitra of the previous fiscal year, has decreased to 3.39% in the current fiscal year’s Chaitra. The inflation rate for food and beverages has also declined, from 5.21% in the previous year’s Chaitra to 2.45% in the current year’s Chaitra.
FNCCI President Highlights Need for Private Sector Access to Climate Finance: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has emphasized the necessity of ensuring private sector access to international climate finance mechanisms like the Green Climate Fund. He noted that the private sector is directly experiencing the impacts of climate change and is prepared to play an active role in addressing these challenges. Speaking on behalf of the private sector at the Sagarmatha Sambaad, President Dhakal stated that Nepal’s business sectors have long been facing the direct effects of climate change.
Bagmati Province Government Spends Only 38.91% of Its Budget in First Ten Months of Fiscal Year 2081/82: The Bagmati Province Government has spent only 38.91% of its budget in the first ten months of the current fiscal year 2081/82. According to Indra Raj Sanjyal, the information officer at the Ministry of Internal Affairs and Planning, the provincial government spent 35.01% of the capital budget and 46.79% of the recurrent budget from Shrawan to Baisakh of the current fiscal year. As of the first ten months of the fiscal year, the government has spent Rs 13.02 billion on capital and Rs 12.08 billion on recurrent expenditures, totaling Rs 25.11 billion.
Government Makes Maximum Retail Price (MRP) Mandatory for All Consumer Goods: The government has made it mandatory to have the Maximum Retail Price (MRP) on all consumer goods. Not only this, but it has also mandated that complete details be displayed on the label of the products. Such labeling is compulsory for both domestically produced and imported consumer goods. The Department of Commerce, Supply, and Consumer Protection has not only been monitoring but also imposing fines on businesses that do not display MRP on their products. Business owners have started to express concerns about the government’s aggressive monitoring.
Sudurpaschim Province Government’s Irregular Expenditure Reaches Nearly Rs 3 billion: The irregular expenditure of Sudurpaschim Province Government has reached nearly Rs 3 billion. The Office of the Auditor General submitted the annual audit report of the fiscal year 2080/81 to Province Chief Najir Miya on Friday. According to the report, the irregular expenditure of the Sudurpaschim Province Government amounted to Rs 2.98 billion. The irregular expenditure from the previous fiscal year was only Rs 500 million more, or Rs 506 million. Until the last fiscal year, the irregular expenditure of provincial government offices and other institutions amounted to Rs 2.68 billion.
Babai Irrigation Project in Bardiya Nears Completion with 76.5% Work Done: The Babai Irrigation Project, initiated to irrigate 36,000 hectares of land in Bardiya district, has completed nearly 76.5 percent of its work. The project aims to finish construction by the fiscal year 2082-83 according to its master plan. However, with one year remaining in the work period, about 13.5 percent of the work is still pending. The master plan for the project was approved in 2078 BS with an estimated cost of approximately NPR 1.896 billion, targeting completion in 2082-83. Despite this, insufficient budget allocation according to the master plan has delayed the project and increased its costs.
Road Clearing Underway at Krishna Bhir on Prithvi Highway: The road-clearing operation is currently underway at Krishna Bhir on Prithvi Highway. Heavy rainfall last Ashoj (September-October) caused about a two-meter portion of a 100-meter stretch of the road to collapse. The Nagdhunga-Muglin Road Project has been working to clear the road before the monsoon season. According to Kedar Prasad Nepal, the chief engineer of the Nagdhunga-Muglin Road Project (Western Section), the road restoration work is being carried out based on expert assessments. He added that about 50 centimeters of the two-meter section of the road was pushed down, and the toe-protection wall constructed to prevent river erosion was also damaged.
Kangchenjunga Becomes a Growing Attraction for Tourists: Kangchenjunga, the world’s third-highest mountain, has recently become a center of attraction for both domestic and international tourists. The number of foreign tourists choosing this region for adventure travel, trekking, and mountaineering is gradually increasing. Recently, a team of 10 individuals, including five foreign nationals, successfully summited Kangchenjunga. They completed the ascent through Seven Summit Treks. The successful climbers include citizens from the UK, Iran, Kosovo, and Nepali Sherpas. According to Mingma David Sherpa, director of Elite Expeditions in Kathmandu, an additional 63 climbers and guides are currently in the region for Kangchenjunga expeditions.
Risk of Accidents Increases on Eastern Section of Asian Highway Route: The risk of accidents has increased on the section of the Asian Highway under construction from Kakarbhitta in eastern Nepal to Laukahi in Sunsari. While the main road is being constructed, temporary diversion roads created for vehicle movement have contributed to the heightened risk. Diversions are present approximately every 100 to 200 meters along the highway, and large potholes in these diversions could fill with rainwater during the monsoon, potentially blocking the road. Due to the potholes and weak structures in the diversions, the risk of accidents is high.
Gold Prices Decline Slightly in Nepali Market on Sunday: The price of gold declined slightly in the Nepali market on Sunday. According to the Federation of Nepal Gold and Silver Dealers Association, hallmark gold, which was priced at Rs 184,800 per tola on Friday, dropped to Rs 184,200 per tola on Sunday. Similarly, the price of silver remained stable. Silver, which was priced at Rs 1,945 per tola on Friday, remained at the same price on Sunday.
