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 Drops by Double Digits, Trading Volume Increases: On the last trading day of the week, the Nepal Stock Exchange (NEPSE) index fell by 12.60 points, closing at 2,661.08. This decline follows a 62.25-point rise on Wednesday when the index reached 2,673 points. Despite the drop in the index, Thursday saw an increase in total trading volume. The total transaction amount reached Rs. 11.65 billion on Thursday, compared to Rs. 10.33 billion on Wednesday. Among the traded stocks, 96 companies saw an increase in their share prices, while 150 companies experienced a decline. Notably, Nepal Micro Insurance Company, Crest Micro Life Insurance Company, Chhyangdi Hydropower, and Om Megashree Company hit the positive circuit limit, marking the maximum permissible rise in their share prices for the day.
Nepal Yet to Receive Official Confirmation on Continuation of MCC Projects in Nepal: Despite reports that Millennium Challenge Corporation (MCC) projects will continue in four countries, including Nepal, the government has yet to receive any official confirmation. According to international media, the United States decided to shut down all MCC projects worldwide following a recommendation from the U.S. Department of Government Efficiency (DoGE), but projects in four countries—Nepal, Mongolia, Senegal, and Ivory Coast—will continue. However, Nepali government officials stated they have not received any such information to date. The American government had previously decided to close down all MCC projects globally. However, Reuters reported that the projects in Nepal, Mongolia, Senegal, and Ivory Coast would not be halted.
SEBON Chair Meets IPPAN President After CIAA Raid Amidst IPO Commission Scandal: On Wednesday afternoon, the Commission for the Investigation of Abuse of Authority (CIAA) seized necessary documents from the Securities Board of Nepal in Khumaltar, Lalitpur, suspecting the demand for commissions during IPO issuances. The Board’s Chairman Santosh Narayan Shrestha reportedly demanded a commission of five to seven percent for IPO issuances of hydropower companies. Following accusations by Ganesh Karki, President of the Independent Power Producers’ Association of Nepal (IPPAN), CIAA raided the Board’s office, seized related documents, and took statements from senior officials for four hours. After the CIAA raid, Chairman Shrestha, visibly disheartened, met with IPPAN President Karki and hydropower promoters on Wednesday evening.
Unusual Surge in Share Prices of Hydropower Companies Promoted as Holdings: In recent weeks, the share prices of listed hydropower companies promoted as holding companies have surged unusually. Some hydropower companies listed in the secondary market have been found to manipulate prices and transactions by marketing themselves as holding companies. These companies have investments in subsidiary companies. Citing market value and the nearing expiration of lock-in periods, the parent companies have increased their share prices by promoting the sale of shares of their subsidiaries to generate large profits. Following these activities, the share transactions of certain hydropower companies have seen abnormal growth. The hydropower companies discussed as holding companies include Ngadi Group Power, Sanima Mai Hydropower, Radhi Vidyut Company, Butwal Power Company, and Arun Valley Hydropower, among others.
Deadlock Continues Over NRB Governor Appointment: The political agreement between the main ruling parties, CPN-UML and Nepali Congress, over the appointment of the Governor of Nepal Rastra Bank (NRB) has hit a roadblock. Prime Minister KP Sharma Oli had agreed to Nepali Congress President Sher Bahadur Deuba’s proposal to appoint Dr. Gunakar Bhatt as the Governor. Oli even promised Deuba during their meeting to finalize the Governor’s appointment by Thursday. However, the acting Governor, Dr. Neelam Dhungana Timsina, who maintains her claim to the position, has not accepted Bhatt’s resignation as of Wednesday. A senior official at NRB close to Acting Governor Timsina confirmed that Bhatt’s resignation had not yet been approved. “She has strategically refused to approve his resignation,” the official stated.
Prime Minister KP Sharma Oli to Inaugurate ‘NRNA Conclave 2025‘: Prime Minister KP Sharma Oli is set to inaugurate the ‘NRNA Conclave 2025’ organized by the Non-Resident Nepali Association (NRNA). The conclave, which is scheduled to take place in Kathmandu on Wednesday, May 14, under the main theme “Rights of NRNs, Foundation of Prosperity,” will be inaugurated by Prime Minister Oli. A delegation led by NRNA President Dr. Badri KC visited the Prime Minister’s residence in Baluwatar on Wednesday to extend a formal invitation. During the meeting, Prime Minister Oli emphasized the need for NRNA to be a common, non-political platform for all Nepalis and assured that the government remains supportive of the association’s genuine demands.
Government Urged to Curb Capital Flight: During the emergency session of the House of Representatives today, MP Amanlal Modi raised concerns about irregularities in the procurement process of the proposed Jagdulla Hydropower Project in Dolpa District, demanding an investigation. He stated, “It appears that the procurement process of the project has violated legal provisions. An investigation is necessary.” Modi also accused the project of breaching the Public Procurement Act and regulations. He urged the government to prevent illegal capital flight from Nepal and initiate necessary steps to bring back the money that has already been transferred abroad.
Ambitious Industrial Development Programs Fail to Take Off: Despite introducing a 17-point ambitious program for “Entrepreneurship and Industrial Development” for the current fiscal year, the government has failed to implement most of them. As preparations for the new budget are underway, the progress of last year’s announced programs remains disappointing. The trend of announcing new programs without proper study and research, followed by a lack of initiatives for their implementation, continued this fiscal year as well. The government had allocated a budget of NPR 6.55 billion for the promotion of industrial development and entrepreneurship. In addition, another NPR 7 billion was allocated for partnership programs to increase production and create employment. The programs aimed to boost domestic production, replace imports, increase exports, and link production with employment.
Chinese-Nepali JV Wins Contract for 106 MW Jagdulla Hydropower Project in Dolpa: The contract for the Engineering, Procurement, and Construction–1 (EPC) under the civil and hydromechanical works of the 106 MW Jagdulla Hydropower Project, being constructed in Dolpa, has been awarded to the Chinese-Nepali joint venture company, Jiangxi Construction Engineering (Group) Corporation and ANK Construction. Jiangxi Construction Engineering (Group) Corporation (China) and ANK Construction Nepal JV, along with Sinohydro Corporation, were shortlisted based on the technical proposal evaluation for the financial proposal stage. After opening the financial proposals on Wednesday, Jagdulla Company awarded the contract to Jiangxi Construction Engineering (Group) Corporation and ANK Construction Nepal JV, as they submitted the lowest bid.
Signature Bridge Construction on Narayani Remains Stalled One Year After Foundation Laying: Amid much discussion, the foundation stone for the “Signature Bridge” over the Narayani River was laid a year ago, but construction has yet to begin. Former Prime Minister Pushpa Kamal Dahal and Minister for Physical Infrastructure and Transport Raghubir Mahaseth inaugurated the bridge with much fanfare on Baisakh 31 of the previous year. However, the construction is yet to take off. Bharatpur’s Division Road Office Information Officer, Engineer Krishna Acharya, stated that the design finalization process is ongoing. Recently, Chinese experts visited the site for inspection, but no significant fieldwork has started. Tundi Construction Pvt. Ltd. was awarded the bridge’s construction contract, with the company itself tasked with the design.
Nepal-China Friendly Industrial Park Yet to Finalize PDA Despite Four Years Since Inauguration: Four years have passed since the foundation stone was laid for the Nepal-China Friendly Industrial Park (Damak Clean Industrial Park), but the Project Development Agreement (PDA) is still pending finalization. Then Prime Minister KP Sharma Oli laid the foundation stone for the industrial park on Falgun 16, 2077 BS. The Investment Board of Nepal approved a budget of NPR 64.9 billion for the industrial park at its 39th meeting held on Shrawan 17, 2076 BS. The board signed a Memorandum of Understanding (MoU) with Chinese developer Lhasa Economic and Technology Development Zone Jingping Joint Construction Company on Ashoj 16, 2076 BS. However, significant progress on the Project Development Agreement remains stalled.
Police Seize Electronic Cigarettes Worth 21 million: In the first week of Chaitra, the Area Police Office in Barhabise and the Armed Police Force in Lamosanghu seized electronic cigarettes (vapes) worth approximately NPR 21 million from two cargo trucks. Earlier, in the month of Poush, the Revenue Investigation Department and the police jointly confiscated around 120,000 vapes. Based on information of smuggling without customs clearance, authorities raided a warehouse in Imadol, Mahalaxmi Municipality of Lalitpur, seizing 86,000 vapes. Additionally, 19,000 vapes were recovered from Korala border, 15,000 from Pathlaiya, and 4,000 from Butwal. On Wednesday, a monitoring team from the Department of Commerce, Supplies, and Consumer Protection inspected “Smile Your Choice” and “Vapemandu Traders” in Kathmandu-12. During the inspection, a significant amount of vapes were discovered, leading to the sealing of the warehouse and sales counters.
Profit Decline in Both Bottlers Nepal Companies: Both companies under Bottlers Nepal have reported a decline in profits. According to the third quarterly financial report for the current fiscal year, Bottlers Nepal (Balaju) and Bottlers Nepal (Terai) both saw a drop in net earnings. As of the end of Chaitra this year, Bottlers Nepal (Balaju) posted a net profit of NPR 15.9 million. In the same period last fiscal year, the company had earned NPR 59.8 million. The financial report indicates a decline in revenue as well. Bottlers Nepal (Balaju) recorded a total income of NPR 7.07 billion up to the end of Chaitra. In comparison, the company had generated NPR 7.18 billion during the same period last year.
Cargo Train Service Halted After First Trip to Nepal: The cargo train that arrived in Nepal once has not re-entered Nepali territory since its return. The cargo train service up to the Integrated Customs Checkpoint (ICP) in Biratnagar has been halted after industrialists and businessmen, who had long advocated for imports via rail to reduce costs, became inactive. As the service from the Jogbani border could not be regularized, the Koshi Province delegation of the Nepal-India Chamber of Commerce and Industry held discussions with the customs chief of Jogbani, India, Vikas Srivastava, and other officials. During the discussion, it was informed that under the current Nepal-India Transit Treaty, only four goods—clinker, chemical fertilizers, coal, and cement—are permitted to be imported via rail, managed by Trans Nepal Freight Services Pvt. Ltd.
14 Cement Trucks Released After Paying Fines for Revenue Evasion: Fourteen cement-loaded trucks detained by police on suspicion of revenue evasion have been released after paying fines. On Tuesday, the trucks were released after submitting proof of a fine payment of NPR 331,800 to the Inland Revenue Office in Maharajgunj. The trucks, which were transporting goods without tax invoices, had been seized by the police during inspections from Friday to Sunday. The trucks were initially handed over to the Taxpayer Service Office in Charikot, which then forwarded them to Maharajgunj, Kathmandu, citing jurisdictional limitations. After the required fines were paid as set by the Maharajgunj office, the trucks were released, confirmed Bimal Kumar Paudel, Head of the Taxpayer Service Office in Charikot.
Sudurpaschim Provincial Tourism Festival to Be Held in Mahendranagar: A three-day Sudurpaschim Provincial Tourism Festival is set to be held in Mahendranagar from Baisakh 26 (May 9). The festival aims to promote the tourism potential and prospects of the Far-Western region. During a press conference held in Mahendranagar on Wednesday, Rajendra KC, Coordinator of the Bhimdatta Tourism Development Committee and the organizing committee, informed that the event is being organized in collaboration with Bhimdatta Municipality and the Tourism Board. According to him, the festival’s main objective is to showcase the tourism destinations of the Sudurpaschim region and facilitate discussions between tourism entrepreneurs from Nepal and India to attract domestic and international tourists. A delegation of 50 tourism entrepreneurs and experts from India is expected to participate in the festival.
Feasibility Study Underway for Kathmandu-Rara Tourist Bus Service: A special inspection team, under the initiative of the Tourist Bus Association of Nepal (TBAN), has departed from Kathmandu to conduct a feasibility study for the operation of tourist buses from Kathmandu to Rara in Mugu. Tourism entrepreneurs embarked on a tourist bus from the Nepal Tourism Board premises to observe the road conditions and the overall status of the journey. Bidding farewell to the inspection team, Senior Director of the Nepal Tourism Board, Hikmat Singh Air, stated, “The campaign to connect Kathmandu with Rara has begun. We are delighted to launch this effort, and we believe it will succeed in proving that tourists can travel from Kathmandu to Rara in Karnali by road.”
Panchakanya Group Launches New Premium Brand ‘Panchakanya Bathware’ in Dhangadhi: Panchakanya Group has officially launched its new premium brand ‘Panchakanya Bathware’ in Dhangadhi. With its new production line, the company aims to address the existing gap in quality and price within the bathware market. At the dealer launch event held in Dhangadhi, more than 60 prominent guests from local industries, businesses, education, hospitality, and construction sectors participated. During the event, Ashik Shrestha, Director of Panchakanya Group, shared the company’s long-term vision, commitment to quality products, and innovation. Similarly, Basanta Rijal, the Sales Head of Panchakanya Bathware, elaborated on the features of the products, service guarantees, and upcoming market strategies.
Gold Prices Surge in Nepal, Silver Dips Slightly: The price of gold in the Nepali market continues to climb daily. On Wednesday, the price rose by NPR 1,700 per tola, and on Thursday, it increased by another NPR 600. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold reached NPR 192,200 per tola on Thursday, up from NPR 191,600 per tola on Wednesday. Meanwhile, the price of silver dropped by NPR 10. On Wednesday, it was traded at NPR 1,965 per tola, but on Thursday, it declined to NPR 1,955 per tola, according to the Federation.
