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.
Stock Market Sees Significant Rise: On Tuesday evening, the Nepal Stock Exchange (NEPSE) saw a significant rise. The NEPSE index surged by 49.09 points (1.86%), closing at 2,677. Despite the rise in the index, total turnover slightly decreased. Compared to the previous day’s transaction of Rs 7.35 billion, Tuesday’s turnover stood at Rs 7.31 billion. Out of the traded companies, the value of 229 increased, 15 declined, and one remained unchanged. All sector indices posted gains. The hotel and tourism sector saw the highest growth, with an increase of 3.42%.
Government Appoints Biswo Poudel as Governor of Nepal Rastra Bank: The government has appointed Dr. Biswo Nath Poudel as the Governor of Nepal Rastra Bank. Spokesperson and Minister for Communication, Information and Technology, Prithvi Subba Gurung, informed that Tuesday’s Cabinet meeting held at Singha Durbar appointed Poudel as the 18th Governor of Nepal Rastra Bank.
Nepal Sees Sharp Rise in Money Laundering Concerns: Suspicious transactions and activities linked to money laundering saw a sharp rise of 49 percent in 2024, according to a new report by the Financial Intelligence Unit (FIU) under Nepal Rastra Bank. The FIU, in its annual newsletter released on Tuesday, revealed that a total of 9,304 Suspicious Transaction Reports (STRs) were filed throughout 2024.
Government Preparing to Exclude Small-scale Projects from Budget Starting Next Fiscal Year 2082/83: The Ministry of Finance’s budget formulation guidelines issued in Falgun 2081 for the upcoming fiscal year, and the government policy and program document presented by President Ramchandra Paudel in Parliament on 19 Baishakh, have prioritized cutting small-scale projects. In fact, the government had already announced stopping small-scale projects from the previous fiscal year. Then Prime Minister Pushpa Kamal Dahal had decided in a cabinet meeting in Poush 2080 that small projects costing less than 30 million rupees would be allocated to provinces and local levels while making the budget for fiscal year 2081/82 on time.
Government Decides to Hand Over Iodized Salt Trade to Private Sector: The government has decided to hand over the trade of iodized salt to the private sector. Last month, the Council of Ministers decided to implement the Iodized Salt (Production and Sale-Distribution) Act, 2055, starting from Shrawan 1, 2082 and a notification was published in the Gazette on 22 Baishakh, 2082. Though the Salt Trading Corporation has been selling iodized salt for the last six decades, with the new act, other private industries besides Salt Trading will be allowed to supply and trade iodized salt. The act provides for granting licenses to all interested in salt trade.
Government Ministries Directed to Report Progress on Grey List Exit Measures: Relevant ministries and departments have been instructed to submit reports on the progress of activities aimed at removing Nepal from the ‘grey list’ related to money laundering to the Office of the Prime Minister and Council of Ministers. In a secretary-level meeting held on Monday, it was decided that ministries responsible for implementing urgent corrective actions—namely the Ministry of Finance, Ministry of Culture, Tourism and Civil Aviation, Ministry of Land Management, Cooperatives and Poverty Alleviation, among others—must send detailed updates to the Prime Minister’s Office within 2082 B.S.
SEBON Requests Factual Proof from IPPAN Regarding Commission Allegations: Following allegations of commission demands in IPO approvals, the Securities Board of Nepal (SEBON) has requested factual proof from the Independent Power Producers Association Nepal (IPPAN). The board has written a letter asking IPPAN to provide its institutional stance. The letter states, “As accusations have been made mentioning names of IPPAN’s responsible officials including its chairman in relation to the board chairman, if there is any basis or factual details, please provide them and also share the official stance of the institution.”
Nepal’s Insurance Sector Remains Savings-focused Despite Decades of Operation: Even after decades, Nepal’s insurance sector has not moved beyond being savings and investment oriented. Though insurance’s primary objective is protection and risk management, in Nepal’s context, it remains limited to savings. Insurance is often viewed as a plan where money is returned after a certain period rather than for risk protection. Attraction to purely risk-bearing insurance like term insurance is very low, according to statistics. The general public understands insurance as a savings mechanism, so companies only offer products accordingly.
Government Signals Strict Enforcement of MRP Labeling Law Despite Traders’ Opposition: The government has indicated it will strictly enforce the legal provision requiring all domestically produced and imported goods to carry a Maximum Retail Price (MRP) label. Even as traders protest the rule, the Department of Commerce, Supplies, and Consumer Protection has announced that it will step up monitoring and take further action against those selling goods without proper labeling. Business groups argue that the enforcement of MRP distorts market pricing and that penalties discourage entrepreneurs. They have been lobbying to halt MRP implementation.
Government Begins Procurement of Indigenous Crops from All 753 Local Levels: The government has initiated the process to purchase indigenous crops from all 753 local units across the country. The Food Management and Trading Company Limited (formerly the Nepal Food Corporation), under the Ministry of Industry, Commerce, and Supplies, began this initiative in Falgun, coordinating with local governments nationwide. So far, the company has signed agreements with 80 local units for the procurement of any type of locally available indigenous crops, according to the company’s Chief Executive Officer, Ramesh Acharya. “This is the major progress we have made over the past three months,” Acharya said. “This is not just about buying local crops—it also includes both procurement and sales operations,” he added.
Private Sector Urges Government to Allow Extraction and Export of River-based Construction Materials in Upcoming Budget: As the government begins preparing the budget for the upcoming fiscal year 2082/83, the private sector has called for legal permission to extract, sell, and export sand, gravel, and stones from rivers, streams, and water bodies. Organizations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) have submitted their suggestions to the government, stating that such resources are currently going to waste and should be utilized through programs incorporated into the new budget. In its recommendation, the FNCCI stated, “A necessary working procedure should be formulated to allow the extraction, distribution, and export of sand, gravel, and stones. Provisions must be made to export quantities exceeding domestic demand (estimated at around 20 million cubic meters annually).”
Most Foreign Employment Labor Permits Issued Institutionally: Among Nepalis going for foreign employment, the majority are going through institutional channels (foreign employment agencies). According to the Department of Foreign Employment, in the first 10 months of the current fiscal year 2081/82, 685,924 labor permits were issued. Of these, 286,941 were issued institutionally. During this period, 280,318 were renewed permits. 108,402 new individual labor permits were issued for going abroad, and 10,263 government (G2G) permits were issued for South Korea, Israel, and the UK.
Cold storage facilities remain underutilized despite government efforts to reduce post-harvest losses: Though the government introduced the concept of cold storage to reduce storage and post-production losses of agricultural produce, existing cold storages are underutilized. Cold storages built with millions of rupees in investment remain abandoned. These cold storages, usually in accessible areas, are not easily accessible to actual farmers. “The utilization of some cold storages is only about half of their capacity due to lack of agricultural produce. Some are partially constructed and left abandoned,” says the 62nd Annual Report of the Auditor General.
Public Debt Increased by Nearly NPR 1.88 trillion till Baishakh of Current Fiscal Year: Public debt has increased by nearly NPR 1.88 trillion till Baishakh end of fiscal year 2081/82. According to the latest report of the Ministry of Finance, total public debt was NPR 4.25 trillion at the end of Ashwin last year. As of Baishakh 31 this year, the debt has reached NPR 6.13 trillion. The public debt includes internal and external debt incurred by government entities.
SEBON removes Kantipur Television Network from IPO application process citing insufficient net worth per share: Securities Board of Nepal has removed Kantipur Television Network from the initial public offering (IPO) application process citing that the net worth per share did not meet the required threshold. The Securities Board has removed 14 companies whose net worth per share was below 90 rupees from the list of applicants. This step was taken after members of the Independent Power Producers’ Association Nepal (IPPAN) alleged that people close to the board chairman were demanding 5 to 7 percent commission to speed up the share issuance process.
Pokhara Paragliding Pilot Found Flying Under Influence of Drugs and Alcohol, Safety Concerns Raised: In response to complaints that paragliding pilots flying tourists over Pokhara’s skies were under the influence of alcohol and drugs, Kaski District Police conducted a surprise inspection at the paragliding take-off point in Pokhara-18, Mandredhunga. The police team carried out on-the-spot tests to determine whether pilots were engaging in substance abuse. Out of 39 pilots tested for alcohol (DUI) and 15 specifically tested for drug use, one pilot was found to have consumed both alcohol and narcotics. According to Kaski police, the pilot in question has been taken into custody and legal proceedings have been initiated against him. The incident has raised serious safety concerns about adventure tourism in the region.
Narayangadh-Butwal road construction reaches 66.50% physical progress: According to information officer Shiva Khanal, the physical progress of the Narayangadh-Butwal road construction plan has reached 66.50 percent. Out of the total length of 113.53 kilometers of Narayangadh-Butwal road, 90.87 kilometers have currently been asphalted on one side. Excluding areas covered by bridges, 110.46 kilometers still need to be asphalted. The bridges cover 3.07 kilometers, according to information officer Khanal. Currently, vehicles traveling in this section can use 93.94 kilometers of asphalt road. This means about 83 percent of the total length is accessible via asphalt road.
Road upgrading underway from Harichok to Yamdi bridge on the Mid-Hill Highway Pokhara section: The upgrading of the road from Harichok to Yamdi bridge on the Pokhara section of the under-construction Mid-Hill Highway is ongoing. Currently, asphalt work is underway on this four-lane road. According to the Mid-Hill Highway Project Office, asphalt paving has been ongoing since the second week of Baishakh. So far, one-sided asphalt paving has been completed from Harichok to Jowari Checkpost. Information officer Kiran Subedi of the Mid-Hill Highway Project Office reported nearly 1.5 kilometers of one-sided asphalt has been completed.
Belibridge removed due to increased flow in Sun Koshi river disrupting Gaighat-Diktel road: Due to increased water flow in the Sun Koshi river over the past few days, the belibridge installed at Foksingtar has been removed. With this, the Koshi Provincial Police Office in Biratnagar has reported that the Gaighat-Diktel road has been obstructed. Since Monday, RN Construction Pvt. Ltd. has removed the belibridge over the Sun Koshi river at Foksingtar on the Sagarmatha highway’s Gaighat-Diktel road section. This has caused disruption on the road. Foksingtar is the main gateway connecting the hilly district of Khotang with the Terai region.
Bikas Hydropower Company Limited begins IPO issuance from today: Bikas Hydropower Company Limited has started issuing its IPO from today. The company has issued primary shares for application from today for local residents affected by the project and Nepalis working abroad. In the first phase, 10 percent of the issued capital, worth NPR 9 crore 9 lakh 10 thousand 1 hundred, has been allocated as 999,101 shares for local residents, and 354,550 shares for Nepalis working abroad. Applications for this IPO can be submitted until Jestha 20.
Embezzlement of 36.2 million Rupees Reported by Employees at a Community Saving and Credit Cooperative in Kavrepalanchok: It has been revealed that employees working at the Community Saving and Credit Cooperative Limited in Panauti, Kavrepalanchok, have embezzled NPR 36.2 million. The employees misused technology to embezzle the cooperative’s funds. Following the revelation of embezzlement of crores by employees, the cooperative issued a notice acknowledging the incident. Of the three employees, two withdrew money from the institution’s income account and deposited it into their personal accounts. Another employee took loans while holding responsibility and used the loan amount himself, lending to his relatives and members.
Jagadamba Motors to Organize ‘TVS Great Grand Exchange and Finance Fair’: Jagadamba Motors, the sole official distributor of the TVS brand in Nepal, will organize the ‘TVS Great Grand Exchange and Finance Fair’. The fair will be held from Jestha 7 to 12 at the exhibition ground located at Bhrikuti Mandap, Kathmandu. The company has announced arrangements for exchanging old motorcycles or scooters to take home new TVS vehicles. There will also be attractive offers and entertaining programs during this special event.
Gold Price Remains Stable Today: According to the Federation of Nepal Gold and Silver Traders Federation, the price of gold today remains steady at NPR 184,800 per tola, same as Monday. On Sunday, the price was NPR 184,200 per tola. On Friday, the price was NPR 184,800 per tola. On Baishakh 9, the gold price had reached NPR 197,900 per tola, which is the highest so far.
