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 Index Rises by 19.14 Points on Thursday, Trading Nears Rs 10 billion: On the last trading day of the week, Thursday, the stock market index rose by 19.14 points, reaching 2,688.91 points. The total trading volume for the day stood at Rs 9.82 billion. On the previous day, the market had recorded a trading volume of Rs 10.45 billion. Today, the share prices of 104 companies increased, while those of 142 companies declined, and 1 remained unchanged. Compared to the overall market, the Sensitive Index—which tracks major companies—saw a more significant rise. Among sectoral indices, the banking group led the gains, climbing by 3.94 percent.
Bankers Seek Tax Relief as Income Pressure Mounts: Faced with shrinking income and rising loan defaults, bankers are seeking relief through income tax adjustments. They argue that declining revenue sources and high default rates require tax reductions to offset losses. Lately, banks and financial institutions have struggled to recover loans. Efforts to auction collateral have been hampered by a slump in the real estate market, preventing the sale of mortgaged properties.
Newly Appointed NRB Governor Poudel Promises Policy Stability: Dr. Biswo Nath Poudel, newly appointed Governor of Nepal Rastra Bank, has stated that monetary and other central bank policies will be formulated based on policy stability and consultations with stakeholders. In a meeting with a delegation from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) at Nepal Rastra Bank, Governor Paudel assured that the central bank’s decisions will be predictable. “The private sector is the backbone of the economy. Stability is necessary for a vibrant economy. Decisions must be predictable, “he said.
Nepal Telecom’s Profit Plunges Nearly 49%: State-owned Nepal Telecom (NT) has reported a steep 48.67% decline in its net profit for the third quarter of the current fiscal year. According to its recently released financial report, the company posted a net profit of Rs 2.84 billion, down from Rs 5.54 billion in the same period last year—a loss exceeding Rs 2.69 billion. The company attributes the decline primarily to the growing popularity of Over-the-Top (OTT) platforms like Messenger, Viber, WhatsApp, and email services, which have drastically reduced revenue from traditional voice calls and SMS.
Nepal Insurance Company Gets Approval for Rights Share Issuance: Nepal Insurance Company has received approval to issue rights shares. The Securities Board of Nepal (SEBON) has authorized the company to issue rights shares equivalent to 40% of its paid-up capital. The company has been permitted to issue 6,576,937 rights shares at a face value of NPR 100 each. Earlier, Nepal Insurance had already appointed NIMB S Capital as the issue manager and sales agent for this rights share issuance.
Over Rs 2.5 billion Worth of Cement Exported in Ten Months: More than Rs 2.5 billion worth of cement has been exported in the first ten months of the current fiscal year 2081/82, according to data released by the Customs Department on Wednesday. As of the end of Baisakh 2082, a total of 772,104 metric tons of cement and clinker valued at Rs 2.41 billion have been exported to India. Among this, 481,925 metric tons of cement clinker worth Rs 649.2 million and cement worth Rs 1.76 billion were exported.
Buddha Air Conducts Test Flight with 72-Seater Plane in Bharatpur: Buddha Air conducted a test flight with its 72-seater aircraft between Kathmandu and Bharatpur on Thursday morning. The aircraft landed for the first time at Bharatpur Airport at 9:30 AM and took off and landed from both directions—Runway 15 (southeast) and Runway 33 (west). The test flight was piloted by Captains Pramod Thapa and Ravi Shrestha. Captain Thapa said the flight encountered no significant issues.
Experts Divided Over Separation of Bankers and Entrepreneurs in New BAFIA Bill: Experts are divided over a provision in the amendment bill to the Bank and Financial Institutions Act (BAFIA) that proposes to separate bankers from entrepreneurs. The House Finance Committee has begun discussions on the bill and held consultations with bankers and experts on Wednesday. The controversial provision relates to “significant ownership” and whether one can be both a banker and an entrepreneur. Former NRB Governor Dr. Chiranjibi Nepal opposed the provision, while former Finance Secretary and Economic Reform Commission Chair Rameshwor Khanal supported it.
Surkhet Airport Closed Until Saturday Due to Runway Damage: Surkhet Airport will remain closed until Saturday due to damage on the runway. The airport was initially closed for two days for repairs, but water seeped out from under the ground at a second location, prompting further closure. A crater appeared on the northern end of the runway on Tuesday. As repairs were underway, water began seeping nearby again, according to airport chief Hirajan Kafle.
Nepal Infrastructure Bank to Issue Bonds Starting June 1: Nepal Infrastructure Bank is set to issue bonds from Jestha 18 (June 1). The bank plans to issue “NIFRA Green Energy Bonds 6% 2088/89” with a maturity of 7 years and an annual interest rate of 6%. The bank will issue bonds worth NPR 5 billion in total, comprising 5 million bonds with a face value of NPR 1,000 each. Out of these, 60% (NPR 3 billion or 3 million bonds) will be allocated to individual investors, while the remaining 40% (NPR 2 billion or 2 million bonds) will be offered to the general public.
Work to Narrow Narayani River Halted After Public Opposition in Narayanghat: Work by the Nepal Water Transport Office to narrow the Narayani River in Narayanghat has been suspended following opposition from locals. The office had planned to construct a spur from the Narayanghat bridge to Devghat to ensure smooth motorboat movement. The spur was intended to manage water levels near the Narayani Lift Irrigation pump house, where the river branches and water becomes insufficient in winter.
Nepal Lube Oil’s Barely Any Trading in 15 Years: Nepal Lube Oil Ltd., operated by Chaudhary Group (CG), entered Nepal’s secondary securities market in 2067. In 15 years since then, its shares have only been traded on 62 days. Investors have continued holding onto their shares without selling. As a result, only about two months of trading activity has occurred in 15 years, and its share price has increased by just Rs 87 per unit in that time.
Charikot Road Office Cancels Contracts of 10 Delinquent Construction Firms: The Charikot Road Division Office has terminated contracts with 10 construction companies for failing to complete projects on time. The companies include Kishor & Navin Construction and Suppliers (Dolakha), Sagar & Shishir Construction, Pipal Danda Nirman Sewa (Sindhupalchok), Sungabha Construction Pvt. Ltd., Kamakhya Construction (Kathmandu), Ganesh Nirman Sewa (Ramechhap), Bhadreshwar Construction and Transport (Dolakha), Mainapokhari Construction (Lalitpur), and Autari Nirman Sewa (Dolakha).
Mechi Customs Collects Rs 12.94 billion Revenue in Ten Months: Mechi Customs Office collected Rs 12.94 billion in revenue during the first ten months of FY 2081/82, achieving 91.51% of its target of Rs 14.14 billion for the same period. In the same period last year (FY 2080/81), the target had been Rs 15.08 billion, but only 76.85% was achieved. According to the office, Rs 7.83 billion in revenue was collected from import of petroleum products, Rs 583.3 million from vegetables, Rs 365.3 billion from vehicles and their spares, Rs 241 million from minerals production, Rs 193.6 million from coffee, Rs 202.9 million from lentils.
Senior Vice President of FNCCI Calls for Ending Policy Instability: Anjan Shrestha, Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has emphasized the need to end policy instability, which he identifies as a key barrier to the expansion of industry and business. He noted that many countries manage to maintain policy stability despite political fluctuations. During discussions in the Parliamentary Finance Committee on issues to be included in the upcoming fiscal year’s budget, Senior Vice President Shrestha stressed that the new budget should create an environment where the private sector is respected and can conduct business smoothly.
Partial Blacktopping Begins at Under-Construction Majhgaun Airport Amid Land Issues: With some required land still unavailable, authorities have begun blacktopping a portion of the under-construction Majhgaun Airport. Although the runway is planned to be 1,525 meters long, only 1,300 meters are being blacktopped currently. A 225-meter section of land under Nepal Army control for Shuklaphanta National Park security has not yet been handed over. The project chief, Minraj Ojha, said an agreement exists and they hope the Army will eventually provide the land.
Hailstorm Damages 1,000 Ropani of Vegetables in Salyan: A hailstorm on Wednesday morning severely damaged vegetables planted commercially on about 1,000 ropani in Kapurkot Rural Municipality Wards 1, 2, and 5 in Salyan. Around 250 farmers from Sarapani, Garpa, and Sallam were affected. Crops and nursery beds were damaged. Pradeep Basnet of Kapurkot-5 said 10 ropani of cauliflower was destroyed. He used to earn up to Rs 1 million annually by selling cauliflower and cabbage, which covered his household expenses. “The hail wiped out all my crops,” he said.
Alternative Road Construction Begins in Jaljala, Parbat After Road Project Stalled for 7 Years: Under the “One Constituency, One Pride” project of Gandaki Province government, an alternative road construction has begun in Jaljala, Parbat district, after the original road project remained stalled for the past seven years. The stalled project connects Milan Chowk (Ward 7, Jaljala Rural Municipality) to Salyan, Ghayakhet, Dharapani, and Thotneri. Due to delays by the contracting company, local residents have started opening an alternative route. While the section from Milan Chowk to Salyan (3.5 kilometers) was blacktopped last year, the remaining 7.5 kilometers of the road has been left incomplete.
Farmers in Baglung Excited by First Commercial Tea Yield: Farmers in Resh, Kathekhola Rural Municipality-7 of Baglung are thrilled after tea plants they planted by clearing shrubs in 2076 have begun yielding commercially. Community members, cooperatives, and schools collaborated on this tea plantation. Currently, tea is cultivated on 162 ropani of land in areas like Baur and Tingring. Last year, they produced tea in a traditional way as a model initiative. This year, they’ve started using new tea-processing equipment and begun plucking tea from 70 ropani, with tea bushes growing in an additional 100 ropani.
Auditor General’s Report Shows Decrease in Outstanding Payments in Pyuthan District: According to the 62nd Annual Report by the Office of the Auditor General, the amount of outstanding payments in Pyuthan district has decreased compared to the previous year. Outstanding payments have reduced by NPR 52,101,000 from the last year. Across nine local bodies in the district, a total of NPR 319,334,000 remains unpaid. Last year, the outstanding amount was NPR 372,125,000. Among these, Swargadwari Municipality has the highest outstanding payments, amounting to NPR 52,663,000, while Mallarani Rural Municipality has the least.
Gold Price Increases Again: The price of gold in Nepal has increased again on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold rose by Rs 1,700 per tola compared to the previous day. On Thursday, the price of hallmark gold reached Rs 191,500 per tola. On Wednesday, it was Rs 189,800. Interestingly, Wednesday had also seen a Rs 5,000 increase compared to the prior day.
