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 Loan Surges by Over 37%, but Stock Market Stagnates: In the first nine months of the current fiscal year, banks and financial institutions in Nepal have disbursed an additional Rs 34.02 billion in share loans—an increase of 37.8% compared to the same period last fiscal year. Despite the notable rise in share-based lending, the stock market has failed to mirror this upward trend. According to data from Nepal Rastra Bank, share lending has been increasing steadily since the beginning of the fiscal year. From mid-July (Shrawan) to mid-April (Chaitra), loans ranging from Rs 2.5 million to Rs 5 million rose by 15.14%, while loans below Rs 2.5 million increased by 8.6%.
Finance Ministry Begins Drafting Budget Statement for FY 2082/83: The Ministry of Finance has officially begun drafting the budget statement for the upcoming fiscal year 2082/83. This follows rounds of consultations with stakeholders and the submission of key policy suggestions. According to ministry officials, the Revenue Advisory Committee has already submitted its report to the Finance Minister, offering recommendations on revenue policy and related measures. These inputs are being incorporated into the budget framework currently under development.
Responsibilities Divided Between Deputy Governors at Nepal Rastra Bank: Responsibilities have been divided between the Deputy Governors of Nepal Rastra Bank. Governor Maha Prasad Adhikari has assigned roles to Deputy Governors Nilam Dhungana and Bam Bahadur Mishra. According to the division, Dhungana has been entrusted with the departments of Bank and Financial Institution Regulation, Non-Banking Financial Institution Supervision, Microfinance Supervision, Foreign Exchange Management, Currency Management, Institutional Planning and Risk Management, Asset and Service Management, Information Technology, and the Provincial Offices. Meanwhile, Mishra has been given charge of the departments of Bank Supervision, Financial Institution Supervision, Economic Research, Monetary Management, Payment Systems, Banking, Human Resource Management, and Financial Management.
IMF Mission Team Visiting Nepal for ECF Sixth Review: A mission from the International Monetary Fund (IMF) is set to visit Nepal for the sixth review of the Extended Credit Facility (ECF) agreement. The IMF, which provided the fifth installment on Chaitra 2 (March 15), is sending the team to assess progress made on commitments. The ECF mission will stay in Nepal for two weeks starting from Jestha 11 (May 25). The team will meet with the finance minister, central bank governor, and chief of the Department of Money Laundering Investigation.
Foreign Minister Rana Meets JICA President in Tokyo: Foreign Minister Dr. Arzu Rana Deuba held a meeting with JICA President Dr. Tanaka Akihiko in Tokyo. The meeting at JICA’s headquarters focused on Nepal-Japan bilateral relations and mutual interests. During the discussion, Minister Rana expressed Nepal’s gratitude for Japan’s long-standing support through JICA in various sectors of Nepal’s economic and social development.
Government Prepares Action Plan to Implement Economic Reform Report: The government has prepared an action plan to implement the report of the High-Level Commission on Economic Reforms led by former Secretary Rameshwor Khanal. The Office of the Prime Minister and Council of Ministers has drafted short-term (immediate, six-month), one-year, two-year, and three-year plans for implementation. A three-member committee coordinated by Secretary Chudamani Paudel has made public four implementation roadmaps based on the commission’s recommendations.
Labor Ministry Fails to Ink New Bilateral Labor Agreements: The Ministry of Labor announced plans to sign new labor agreements with three countries during this fiscal year but has failed to do so. Budget point 136 of the current fiscal year declared the intention to sign bilateral labor deals with three new major destinations. As of early Jestha (mid-May), the promise remains unfulfilled. Ministry spokesperson Danduraj Ghimire admitted that no new labor agreement has been signed this year.
Nijgadh Airport Remains in Limbo Despite Rs 1 billion Already Spent: Despite spending Rs 1 billion, the government has not finalized the construction modality for Nijgadh International Airport. Even after two decades of being declared a national pride project, the airport remains uncertain. No progress has been made on implementing the government’s decision to demarcate the airport site. While large sums have been spent, the government has neither decided to proceed with the airport nor abandon the project.
Government Policy Seen to Encourage Illegal Tobacco Trade: The government appears to be introducing a policy that may encourage the illegal trade of tobacco products in Nepal. Despite fake Nepali cigarette brands being sold near border areas, a new directive from the Ministry of Health and Population could potentially aid the spread of counterfeit tobacco products. While the directive—to regulate the printing and labeling of health warnings on tobacco packets, wrappers, strips, and parcels—seems beneficial from a public awareness perspective, business insiders argue that it might inadvertently promote the illegal trade of tobacco in Nepal.
New Private Sector Members to Join Investment Board: New members from the private sector are set to be appointed to the Investment Board. With the departure of Bhawani Rana, Haribhakta Sharma, and Rajeshkaji Shrestha, new appointments will be made. The Board stated that their term has ended and the chairperson will appoint their replacements. “Their tenure has expired,” said Yuvraj Khatiwada, joint spokesperson of the Board. “Now, the chairperson will appoint new members.”
NEA Removes CEO Bimal Gurung from Dudhkoshi Hydropower Project: The Nepal Electricity Authority (NEA) has removed Bimal Gurung, the Chief Executive Officer (CEO) of the 670-megawatt Dudhkoshi Reservoir Hydropower Project, from his position. Gurung, who was working under NEA’s subsidiary company overseeing the Dudhkoshi project, was officially recalled to the central office on Wednesday. A formal letter was issued by the authority directing him to report to the Engineering Services Directorate’s Division of Norms, Specifications, and Design.
Agricultural Lending Rises Slightly by 1.6% in Nine Months: Agricultural lending in Nepal increased by just 1.6% over the first nine months of the current fiscal year—a marginal rise compared to 0.7% growth during the same period last year. In FY 2079/80, agricultural lending had declined by 2.3% over the same timeframe. According to Nepal Rastra Bank, loans to the agricultural sector reached Rs 425.23 billion by the end of Chaitra (mid-April), compared to Rs 418.59 billion at the end of Ashad (mid-July), showing a 1.6% increase.
FNCCI President Calls for Tourism Infrastructure and Connectivity: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has called for improved tourism infrastructure and connectivity. Speaking at the opening of the Third Buddhist International Travel Mart in Kathmandu—organized by the Nepal Tourism Board and Nepal Association of Tour and Travel Agents (NATTA) with support from the Ministry of Culture, Tourism, and Civil Aviation—he emphasized the need to enhance Nepal’s capacity to attract tourists.
Nepal Securities Board Approves IPO for Himstar Energy Company: Nepal Securities Board has granted approval to Him Star Energy Company for issuing an Initial Public Offering (IPO). The company has received permission to publish a prospectus for the issuance of a total of 1,199,000 shares. NIC Asia Capital will act as the share issuance and sales manager for Himstar Energy’s IPO. Him Star Energy has successfully completed the 5-megawatt capacity Buku-Kapati Hydroelectric Project.
Sanvi Energy Limited Opens IPO to General Public from Friday: Sanvi Energy Limited has opened its Initial Public Offering (IPO) to the general public starting today (Friday). After completing the IPO allotment for locals of the project-affected area and Nepalis working abroad, the company has now issued shares to the general public. The company has offered 2,415,300 shares worth Rs 241.53 million at a face value of Rs 100 per share.
Technical Glitch Hits E-Sewa, Sparks Public Confusion: A technical issue occurred in the digital payment service provider E-Sewa on Monday afternoon. Many users reported being unable to log in to the mobile app or website, and those who could log in faced problems in processing transactions. The incident sparked widespread discussion, criticism, and speculation on social media. Some users even fell victim to misleading claims that E-Sewa had been hacked or that its security was compromised, according to the company.
Sikta Irrigation Project Begins Branch Canal Construction: The under-construction Sikta Irrigation Project in Banke has started building a branch canal from its eastern main canal. As water is already flowing in parts of the eastern main canal, branch construction has begun to deliver water directly to farmlands, said project director Raju Acharya. According to him, work has started from Lataniya village in Rapti Sonari Rural Municipality–4. The branch canal will be 4 kilometers long, with sub-branches extending from 1.4 kilometers. Three sub-branch canals are planned in this segment.
Dangerous Sections of Karnali Highway Remain Unimproved: Despite the start of upgrades on the Karnali Highway—considered the backbone of Karnali’s economic and physical development—hazardous sections remain unimproved. The Jumla-Kalikot stretch of the 232 km Jumla-Surkhet road includes spots like Timure, Bhainsigauda, Bhigim, and Takulla, which remain full of potholes, hampering daily transport. The condition of the Paduka River area between Tallodungeshwar and Paltada in Dailekh is also poor. In winter, dust clouds reduce visibility; in the rainy season, vehicles get stuck in the mud.
Plastic Waste Being Turned into Tiles and Bricks in Dang: In Dang, a joint effort between local government and the private sector has started producing tiles and interlocking bricks from plastic waste. These bricks are typically used for parking areas, footpaths, and courtyards. The project is a collaboration between Rapti Rural Municipality and Eco Family, based in Hetauda. The facility also produces plastic water tanks. According to Eco Family Pvt. Ltd., this is the first such production initiative in the country.
Harmful Levels of Pesticide Residue Found in Vegetables in Kanchanpur: Harmful levels of pesticide residue have been found in vegetables in Kanchanpur. A team from the Pesticide Residue Rapid Analysis Laboratory Unit Office in Attariya, Kailali, collected vegetable samples for lab testing and found some containing pesticide levels unsuitable for consumption. According to Assistant Technician Rajendra Prasad Bhatt from the unit office, among 10 vegetable samples collected from six shops at Jhulari Bazaar, Shuklaphanta Municipality–10, bitter gourd was found to have pesticide levels unfit for consumption.
Gold Price Drops by Rs 1,100 Per Tola on Friday: The price of gold has decreased by Rs 1,100 per tola on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price for today has been fixed at Rs 190,400 per tola. It was Rs 191,500 per tola the previous day. The price of silver has also dropped by Rs 20 per tola. Previously priced at Rs 2,025 per tola, silver now stands at Rs 2,005 per tola.
