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 Slight Dip with Rs 9.24 billion Turnover: Despite a decrease in overall trading compared to the previous day, the Nepal Stock Exchange (NEPSE) recorded a turnover of Rs 9.24 billion on Sunday. The total transaction amount dropped by Rs 130 million from the earlier session. The NEPSE index declined by 3.44 points, settling at 2,620. Hydropower companies led the market in trading volume, accounting for nearly 59% of the total turnover. Shares worth Rs 5.44 billion were traded solely from this sector, making up 58.9% of the day’s transactions. Despite the massive trading volume, the hydropower sub-index dipped by 0.09%, likely due to profit booking and market sentiment. Several sectors saw a decline in their respective indices. The finance sector fell by 1.30%, followed by investment (-0.86%), life insurance (-0.28%), microfinance (-0.25%), trading (-0.84%), and others (-0.02%).

Mutual Funds Inject Nearly Rs 46 billion into Nepal Stock Market: Mutual funds have continued to play a major institutional role in Nepal’s stock market. Merchant banks have issued various mutual fund schemes and invested the proceeds into secondary market equities. By the end of Chaitra (mid-April 2025), mutual funds had invested approximately Rs 45.91 billion in the share market, up from Rs 43.62 billion in Magh (mid-February 2025), reflecting the launch of several new funds. Currently, 36 closed-end and 9 open-end schemes are in operation. Of the total mutual fund assets under management, 73.07% has been invested in the share market. According to fund manager disclosures, the total fund size stands at Rs 59.69 billion, of which Rs 4.74 billion (7.94%) has been deposited in fixed deposits.

Nepal Rastra Bank to Absorb Rs 50 billion Liquidity: On Sunday, the Nepal Rastra Bank (NRB) announced plans to withdraw Rs 50 billion in excess liquidity from the banking system through its deposit collection instrument. This liquidity absorption will take place over a 21-day period. The NRB cited excess loanable funds in financial institutions as the reason for the move. The central bank stated that online bidding for the liquidity mop-up would remain open until 3 PM Sunday. This marks a continuation of NRB’s biweekly liquidity management actions, conducted every Sunday and Wednesday.

Finance Group Hits Lowest Point in 10 Months on NEPSE: The once-popular finance group on NEPSE is now in a tightened situation. Among the 12 listed groups on the Nepal Stock Exchange, the finance group is currently the weakest and has dropped to its lowest point in the past 10 months. On the last trading day, Wednesday (Baisakh 17), the Finance Index stood at 2,397.79—its lowest since Asar 6, 2081, when it was 2,340.77. Although it had peaked at 3,975.49 on Bhadra 6, the index has since declined by 1,578 points. Despite a temporary rise by Kartik 28 to 3,765 points, the overall trend since Bhadra has been downward.

Minister Dahal Inspects Road Projects, Emphasizes Inter-Agency Coordination: Physical Infrastructure and Transport Minister Devendra Dahal stated on Sunday that the coalition government has accelerated infrastructure development across all sectors. During an inspection of road projects in the Kapan area of Kathmandu, he credited the strong trust and coordination among coalition parties for the development pace. Local residents requested river management and road construction in the area. Minister Dahal acknowledged that infrastructure projects fall under various ministries and assured that coordination among agencies would be ensured to meet public expectations. He emphasized that infrastructure development is key to raising living standards, improving access to education and healthcare, and fostering rural employment and entrepreneurship.

Flights Disrupted Nationwide Due to Adverse Weather: Flights across Nepal were disrupted on Sunday due to persistent rainfall and poor visibility. According to Tribhuvan International Airport (TIA) officials, both domestic and international flights were affected. TIA spokesperson Rinji Sherpa confirmed that a Jazeera Airways flight to India’s Varanasi was diverted due to en route weather conditions. Domestically, Buddha Air’s Mountain Flight was diverted, and three aircraft from Summit Air and Tara Air bound for Lukla from Ramechhap were also forced to turn back due to bad weather. Normal operations resumed gradually at Kathmandu and regional airports after the rainfall subsided, though some remote area flights remained suspended. A Nepal Airlines flight to Thamkharka was also diverted.

Himalayan Life Insurance Posts Rs 472.4 million Profit in Q3: Himalayan Life Insurance has reported a net profit of Rs 472.4 million for the third quarter of the current fiscal year, marking an 8.49% year-on-year increase. In the same period last year, the insurer had posted a net profit of Rs 435.4 million. Net premium income saw a modest rise, climbing from Rs 12,020 million to Rs 12,180 million. However, despite the growth in profit, the company’s earnings per share (EPS) declined due to a rise in paid-up capital, which increased from Rs 8,020 million to Rs 9,140 million. As a result, the annualized EPS dropped from Rs 7.24 to Rs 6.89. The insurer’s net worth per share stands at Rs 116.07, while its current market price per share is Rs 417.

3G Mobile Internet to Be Phased Out in Nepal Starting 2025: Telecom providers in Nepal are beginning to phase out third-generation (3G) mobile broadband internet starting in 2025. Ncell officially announced its plan to shut down 3G services at an event on February 28. The company argued that the government should tighten imports of phones that do not support VoLTE technology to facilitate the transition. Both major telecom companies in Nepal are preparing to offer only 4G services, with Ncell having already announced its infrastructure upgrade and phase-out timeline.

Dhruba Bhattarai Appointed Independent Director of Nepal Bank: Dhruba Bhattarai has been appointed as an independent director of Nepal Bank Limited. The decision was made during a board meeting of the bank’s board of directors. Bhattarai will represent public shareholders and is affiliated with the Employees’ Provident Fund. The position had remained vacant since former chairman Chandra Bahadur Adhikari was removed from the board by Nepal Rastra Bank over corruption allegations.

Government Approves Management of Investment in Seven State Enterprises: The Government of Nepal has granted approval to manage state investments in seven major public enterprises. As announced by Minister for Communication and Information Technology Prithvi Subba Gurung, the Council of Ministers made the decision on Baisakh 17, 2081. The enterprises include Janakpur Cigarette Factory, Gorakhkali Rubber Industry Ltd., Udayapur Cement Industry, Hetauda Cement Industry, Nepal Metal Company, Butwal Textile Factory, and Nepal Orient Magnesite. Additionally, the government has approved the acquisition of 289 hectares of land for canal design and expansion under the Ranijamara Kulariya Irrigation Project, under the Ministry of Energy, Water Resources and Irrigation.

Bagmati Province Launches e-Blue Book and Digital Driving License System: Bagmati Province has officially launched the e-Blue Book and electronic driving license (EDL) systems, eliminating the need for physical copies of both documents for vehicles registered in the province. The new systems are integrated with Nepal’s Nagarik App, allowing users to display their digital blue books and licenses through their smartphones. The EDL system allows for online applications for new licenses, renewals, category upgrades, and duplicate issuances. The systems were launched during an event in Kathmandu, where Prime Minister KP Sharma Oli formally inaugurated the services by clicking a button on a laptop.

Alternative Road Construction Near Trishuli River: Travelers along the Narayangadh–Muglin road may have noticed machines cutting through cliffs on the far bank of the Trishuli River near Muglin. The rocks and soil excavated from the hillside are being dumped directly into the river. Tej Bahadur Sherchan, ward chair of Ichchhakamana Rural Municipality–5, says that a few days ago, the entire Muglin Bazaar was covered in dust, causing much inconvenience. Even after being widened to a two-lane road with Asian Highway standards, the Narayangadh–Muglin section suffers from landslides every monsoon, troubling travelers. This highway is the main route linking Kathmandu and Pokhara to eastern and western Nepal. Whenever landslides block the road, talk of constructing an alternative route on the opposite bank of the Trishuli River gains traction. That plan is now being realized.

SEZ and Dhaubadi Iron Company to Operate under PPP Model: The government has decided to operate Special Economic Zones (SEZs) and the Dhaubadi Iron Company under a Public–Private Partnership (PPP) model. This was announced through the policies and programs for the fiscal year 2082/83 (2025/26). Although SEZs were established to boost production, exports, job creation, and attract local and foreign investment, only Bhairahawa and Simara SEZs are currently operational. The government now aims to expand SEZ operations under the PPP model starting next fiscal year. Former Secretary Krishna Gyawali said this move was positive and must be implemented swiftly. Since private sectors will establish industries within SEZs and export goods, PPP is a suitable model, he added.

Bagmati Province Industry Association Urges Establishment of Quarantine Facility: As part of discussions for the upcoming budget, the Ministry of Economic Affairs and Planning of Bagmati Province has held talks with the Bagmati Province Industry Association. During the discussions, the association proposed setting up an agriculture and livestock quarantine post at Ratamate, along the East-West Highway, near the entry point to Hetauda. The aim is to promote and increase consumption of local products. The association has also recommended that the provincial government mandate the purchase of domestically produced goods, improve procurement mechanisms, coordinate with industrial federations for setting up industrial zones, and arrange training programs for skilled industrial manpower.

Insurance Information Center Nears Final Stage of Establishment: The Nepal Insurance Authority is in the final stages of establishing an “Insurance Information Center” with investments from insurance companies. The center aims to prevent fraud and is also included in the government’s policy and programs for the fiscal year 2082/83. Executive Director and spokesperson of the Insurance Authority, Sushil Dev Subedi, confirmed that the authority has been working on the center for a long time and that its creation was envisioned in the new insurance regulations implemented in Magh. “We’re close to completing the process; after a few technical steps, it will be established,” he said.

Egg Production Declines as Temperatures Rise: With the onset of heat, egg production has started to fall while demand increases. Due to the heat, chickens eat less, resulting in a decrease in both the size and number of eggs produced. Dr. Ananta Dahal, Associate Professor at the Agriculture and Forestry University, Rampur, stated that chickens tend to lay fewer eggs in hot weather and are more prone to diseases during this season. Increased humidity from rainfall causes additional stress to poultry. According to him, egg production could drop by up to 25% during extreme heat.

NADA Removes Akash Golchha from Senior Vice President Post:The NADA Automobiles Association of Nepal has removed Akash Golchha from the position of Senior Vice President and listed him only as a member on its website. Golchha had been selected for the role by the first meeting of the new executive committee elected from NADA’s 47th General Assembly. However, about one year and three months later, he was suddenly demoted. The controversy within NADA started from the very first meeting of the new executive committee. Former President Dhruba Thapa suggested that the removal could be due to the District Administration Office not approving the amended statutes passed by a special general meeting.

April 2025 Becomes Record Month for Tourist Arrivals in Nepal: April 2025 proved to be an encouraging month for Nepal’s tourism sector, with 116,490 foreign tourists visiting the country—a new monthly record. Previously, the highest number of tourists in a single month was in April 2024 with 111,376 arrivals. For comparison, in April 2019 (pre-COVID), 109,399 tourists had arrived. This year’s April arrivals mark a 6.5% increase from April 2019. During the peak of the pandemic in April 2020, only 14 tourists had entered the country. Deepak Raj Joshi, CEO of the Nepal Tourism Board, stated that this rise demonstrates Nepal’s appeal and tourism potential.

Gorkha’s Barpak Road Gets Blacktopped After 28 Years: A 28-year-old road segment connecting Gorkha district headquarters to Tarkukot in Barpak Sulikot Rural Municipality via Ghyampesal has finally been blacktopped. The 8.36 km road was widened to a two-lane, seven-meter-wide route. The blacktopping project was executed by the MS, Biruwa, Waiba & Lama JV company at a cost of Rs 297.7 million. According to engineer Kapil Kapri of the Infrastructure Development Office, Gorkha, the contract was signed on 15 Shrawan 2077 with a completion deadline by the end of Chaitra 2081.

Gold Price Increases by Rs 600 per Tola: Gold prices rose by Rs 600 per tola on Sunday, with the Federation of Nepal Gold and Silver Dealers’ Association setting the new rate at Rs 184,100 per tola. This is up from Rs 183,500 per tola the previous day. Conversely, silver prices declined. Silver was priced at Rs 1,930 per tola the previous day and dropped to Rs 1,910 per tola on Sunday.