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.
Nepal’s Stock Market Rises After Six Days of Decline: Nepal’s stock market, which had been witnessing a continuous decline for six consecutive days, rebounded on Monday. The NEPSE Index increased by 19.30 points compared to the previous trading day, closing at 2,628. Despite the rise in the index, the overall trading volume saw a decline. On the previous day, the total transaction amount was recorded at NPR 8.50 billion, whereas it dropped to NPR 7.35 billion on Monday. The share prices of 185 companies went up, while 60 companies saw a decline, and two remained unchanged. Among the various sectors, the Hotel and Tourism sector was the only one to experience a drop, sliding by 1.24%, while all other sectors showed positive growth. The Development Bank Group registered the highest growth, with an increase of 1.88%.
Government Spends Only 62.24% of Budget in 10 Months: The federal government, which set a target of spending NPR 1,860.30 billion in the current fiscal year 2081/82, has only managed to spend 62.24% in the first ten months (Shrawan–Baisakh). Of this, capital expenditure is just 34%. The government aims to accelerate spending in the next two months (Jestha–Ashar) to achieve around 80% capital expenditure, employing measures like fund transfers and additional disbursements. This recurring trend in recent years raises questions about the government’s allocation efficiency and the quality of projects completed in the fiscal year’s final months.
Public Debt Reduced by NPR 44.86 billion by End of Baisakh: Nepal’s outstanding public debt stood at NPR 2.622 trillion by the end of Baisakh, marking a decrease of NPR 44.86 billion from the previous month. As of Chaitra, the debt had been NPR 2.667 trillion. This reduction is attributed to higher repayments of old loans compared to the collection of new ones. Gopi Krishna Koirala, the head of the Public Debt Management Office, confirmed the debt decline was due to repayments exceeding new debt acquisition.
SEBON Penalizes 11 Brokerage Firms for Failing to Submit Reports: The Securities Board of Nepal (SEBON) has penalized 11 brokerage firms for failing to submit anti-money laundering reports on time. As per SEBON regulations, firms are required to submit semi-annual reports within 15 days of the end of the period. SEBON spokesperson Niranjay Ghimire stated that the companies were first issued a written warning. Following a decision by SEBON’s Board of Directors on 25th Baisakh, a letter of penalty was sent to the firms on Sunday. The penalized firms include Bluechip Securities, Property Wizard, StockScarts Securities, Sumeru Securities, Roadshow Securities, Sagarmatha Securities, Infinity Securities, Magnet Securities & Investment Company, Elite Merchant Capital, Reliable Investment & Merchant Capital, and Reliable Venture Capital.
Government Faces Pressure to Increase Salaries Amid Revenue Collection Challenges: With stagnant revenue collection, the government is under pressure to increase the salaries of public servants, including civil service employees, police, army personnel, and teachers this fiscal year. The government had agreed to revise the salaries every three years as per an agreement with civil servants. However, there has been no increase in salaries for the past two years, forcing the government to consider adjustments this year. Although initial discussions have taken place at the Ministry of Finance, which is currently busy preparing next year’s budget, no decision has been finalized yet.
Auditor General Questions Legitimacy of Export Incentive Scheme: The Auditor General’s report has once again raised questions over the legitimacy of the government’s export incentive scheme, aimed at boosting domestic production and promoting exports to reduce trade imbalances. The report noted that, similar to previous years, there are questions about the distribution of grants under the scheme, which has been disbursed without legal backing. The report stated that the budget announcement for FY 2068/69 mentioned providing export subsidies, which were gradually increased from 1% to between 3% and 5% in recent years.
Insufficient Budget to Graduate Nepal from LDC Status by 2026, Says Minister Bhandari: Industry, Commerce, and Supplies Minister Damodar Bhandari stated that the budget allocated is insufficient for Nepal to graduate from the Least Developed Country (LDC) status by 2026. Speaking at a meeting of the Development, Economic Affairs, and Good Governance Committee under the National Assembly, Minister Bhandari said that the lack of budget has hindered the implementation of the “Smooth Transition Strategy” prepared by the government. He added that due to a lack of inter-agency coordination, the strategy has not been implemented effectively.
Civil Aviation Bills Sent for Clause-by-Clause Discussion in Parliament: Two bills related to the Civil Aviation Authority of Nepal (CAAN) and Nepal Air Service Authority have been sent to the International Relations and Tourism Committee of the House of Representatives for clause-by-clause discussion. Minister for Culture, Tourism, and Civil Aviation, Badri Pandey, presented the bills in the House session on Sunday, proposing they be sent to the committee for detailed discussion. Speaker Devraj Ghimire announced the proposal’s unanimous approval through a voice vote. The bills will now be reviewed in detail by the committee before moving forward.
Government Development Projects Lagging Behind as Fiscal Year Ends: As the current fiscal year 2081/82 nears its end, government offices related to development and infrastructure projects are showing weak progress, highlighting Nepal’s slow pace of development, experts say. The Department of Roads, with a budget of Rs 117 billion, the Department of Building with Rs 51 billion, and the Local Infrastructure Department (DOLI) with Rs 18 billion have shown minimal progress compared to last year. According to Bimarjun Adhikari, spokesperson for the Ministry of Physical Infrastructure and Transport, the ministry’s overall progress until the end of Baisakh is only 41%, with the Department of Roads showing 42% progress.
Nepal Imports Rs 47.8 billion Worth of Food Grains in First Nine Months of FY 2081/82: Agriculture, Cooperatives, and Livestock Development Minister Ramnath Adhikari announced that Nepal imported food grains worth Rs 47.8 billion by the end of Chaitra (April) in the current fiscal year 2081/82, while exports stood at just Rs 62 million. Minister Adhikari reported a trade deficit of Rs 47.7 billion in food grains, alongside vegetable imports worth Rs 31.52 billion and exports of Rs 408.2 million. Additionally, fruit imports amounted to Rs 18.2 billion, with exports reaching only Rs 17 million.
Nepal Telecom’s Profit Declines by 48.6%: Nepal Telecom’s profit decreased by 48.6% during the first nine months of the current fiscal year. The company earned a net profit of NPR 2.84 billion, down from NPR 5.53 billion in the same period last year. The drop in profit is primarily due to a sharp decline in interest income, which fell by 46%. Telecom’s interest income plummeted from NPR 5.19 billion to NPR 2.80 billion during this period.
Construction Sector Expected to Rebound This Fiscal Year: The construction sector, which contracted by 2.2% in the last fiscal year 2080/81, is expected to grow by 2.21% this year, according to the National Statistics Office. This positive trend indicates some revival in the sector. Financial reports from four listed cement companies—Sarbottam, Shivam, Ghorahi, and Sonapur—also show increased revenue, reflecting growth.
Trade Tower IPO to Open for General Public from May 28: Trade Tower’s Initial Public Offering (IPO) for the general public is set to open from May 28. The company has already allocated shares to those in foreign employment. A total of 3,971,693 shares will be issued, with 10% reserved for foreign employees, 5% for mutual funds, and 2% for staff. The remaining 3,296,505 shares will be available for the public. Investors can apply online through MeroShare or at their respective banks by June 2. The minimum application is for 10 shares, and the maximum is 1,000 shares.
Minister Dahal Inaugurates Blacktopping of Mahure–Foksingtar Road: Minister for Physical Infrastructure and Transport, Devendra Dahal, inaugurated the blacktopping of the Mahure–Foksintar road. The road, initially laid down by former Prime Minister Manmohan Adhikari in 2051 B.S., was officially blacktopped by Minister Dahal on Sunday. The government allocated NPR 860 million for the blacktopping of the Foksingtar–Simapani and Simapani–Mahure sections of the Dikhtel–Gaighat road, according to Engineer Pashupati Gyawali, the head of the Gaighat–Dikhtel road project.
Blacktopping Begins on Sanga–Dhulikhel Section of Araniko Highway: Blacktopping has begun on the Sanga–Dhulikhel section of the Araniko Highway, which is being upgraded to a six-lane road. The Surya Binayak–Dhulikhel, Dhulikhel–Sindhuli–Bardibas road project aims to complete the three-kilometer stretch from Dhulikhel to Banepa by the end of Ashar. The blacktopping started from Dhulikhel’s main junction towards Banepa, with one kilometer already completed, informed project engineer Bishnu Prasad Khanal.
Ncell Signs Digital Inclusion Principles for People with Disabilities: Ncell has signed the GSMA’s Digital Inclusion Principles for People with Disabilities, reinforcing its commitment to promoting digital inclusivity. GSMA, the global association of mobile operators, aims to bridge the digital divide and provide accessible mobile services for people with disabilities. Ncell’s signing signifies its support for these global standards.
Iwakhola Hydropower Project Halted for Four Days: The Iwakhola Hydropower Project, owned by Ridi Power Company Limited, has been shut down for four days due to technical issues at its powerhouse. The project, which draws water from the Indrawati River along the border of Taplejung and Panchthar, has ceased production since Thursday night. The 9.9 MW project is currently undergoing maintenance to replace faulty equipment and resume operations.
Revenue Collection from Land and Property Transactions Reaches Rs 37.76 billion in First 10 Months of Current Fiscal Year: The Department of Land Management and Records reported that revenue collection from land and property transactions reached Rs 37.76 billion in the first 10 months of the current fiscal year. The highest revenue was collected in Baisakh, amounting to Rs 4.54 billion. According to the department, the lowest revenue was collected in Kartik, with Rs 2.70 billion. Revenue collection figures for other months include: Shrawan (Rs 3.83 billion), Bhadra (Rs 3.09 billion), Ashoj (Rs 3.08 billion), Mangsir (Rs 3.87 billion), Poush (Rs 4.25 billion), Magh (Rs 3.87 billion), Falgun (Rs 4.12 billion), and Chaitra (Rs 4.39 billion).
Dairy Farmers Struggling as Milk Payments Delayed for Over Six Months: According to dairy industry stakeholders, milk production and collection are higher during Kartik, Mangsir, Poush, Magh, Falgun, and Chaitra. Surplus milk is processed into butter and powder for storage, which is later used to meet market demand during the dry season starting from Baisakh. However, farmers have not received their dues for the past six months.
The Central Dairy Cooperative Association Limited stated that farmers are owed more than Rs 5 billion from dairy industries. Out of this, private dairy companies owe Rs 3.5 billion, while the government-owned Dairy Development Corporation (DDC) owes Rs 1.5 billion, according to General Secretary Ram Acharya.
Koshi Province Presents Budget Policy for Fiscal Year 2082/83 Today: Koshi Province has presented its policy and program for the fiscal year 2082/83 today at the Provincial Assembly. According to the Provincial Assembly Secretariat, Koshi Province Chief Parshuram Khapung presented the policy and program in the assembly session at 3 PM today. The budget policy outlines key development priorities and strategies for the coming fiscal year.
Gold Prices Rise Slightly in Nepalese Market: The price of gold slightly increased in the Nepalese market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold rose by NPR 600 per tola compared to Sunday. As of Monday, the price of gold was fixed at NPR 184,800 per tola, up from NPR 184,200 per tola on Sunday. The price of silver remained unchanged, staying at NPR 1,945 per tola, the same as on Sunday.
