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.

Nepal Stock Market Falls for Fifth Straight Day, NEPSE Drops by 9.62 Points:

The share market continued its downward trend for the fifth consecutive day on Monday. The decline, which started last week, persisted into the new week without signs of recovery. On Monday, the Nepal Stock Exchange (NEPSE) index fell by 9.62 points to close at 2,610.76. On the previous trading day (Sunday), NEPSE had already declined by 3.44 points, closing at 2,620.39. In the previous week, the index had dropped by 14.53 points on Monday, 15.08 points on Tuesday, and 8.14 points on Wednesday. However, on Sunday of last week, NEPSE had seen a slight gain of 3.58 points. The total transaction volume on Monday stood at Rs 7.63 billion. This is slightly lower than Sunday’s total turnover of Rs 8.95 billion

PM Oli and NC President Deuba Hold Talks on Vacant NRB Governor Post:

Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba held an extensive discussion focused on the appointment of the Governor of Nepal Rastra Bank (NRB), a position that has remained vacant for nearly a month. According to sources, the two top leaders met on Sunday evening for around one and a half hours, revisiting the issue of the central bank’s leadership, which has remained unresolved since Maha Prasad Adhikari retired from the post on Chaitra 24. The post of NRB Governor has been vacant since Adhikari’s departure, leaving the central bank without leadership. Prior to Deuba’s recent visit to Thailand, on Baisakh 2, there had already been a recommendation to appoint Dr. Gunakar Bhatta, the Executive Director of NRB, as the next governor.

Finance Minister Poudel Consults Deuba on Upcoming Budget:

Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel consulted Nepali Congress President Sher Bahadur Deuba regarding the budget for the upcoming fiscal year. Minister Poudel visited Deuba’s residence in Budhanilkantha this morning for the consultation. On the occasion, Deuba advised the finance minister to adopt fiscal austerity and ensure optimal utilization of available resources while preparing the budget, considering the country’s economic condition.

Pokhara International Airport Inquiry Report Amidst Corruption Allegations Faces Controversy in Legislative Committee:

The inquiry report into the Pokhara Regional International Airport project, which includes findings of over NPR 10 billion in corruption, has sparked a controversy within the parliamentary committee. The report, submitted by a subcommittee led by Rajendra Lingden, has been distributed for discussion in the committee. At the start of the meeting, former Tourism Minister Yogesh Bhattarai, who had chaired the inquiry subcommittee for the Gautam, Buddha International Airport, questioned whether the committee’s members had conflicting interests. Bhattarai expressed his concern and announced that he would not participate in the Pokhara subcommittee. Rastriya Swatantra Party lawmaker Manish Jha also advised Bhattarai’s successor, former Minister Prem Ale, to step down from the subcommittee. Following their resignations, both reports on the Pokhara and Lumbini airports have now faced increased scrutiny and controversy.

EV Imports Surge Ahead of Possible Tax Hike in Upcoming Budget:

Fearing a potential increase in taxes on electric vehicles (EVs) in the upcoming budget, importers have rushed to bring in EVs ahead of time. As a result, customs yards at northern border points are filling up with EVs.
Historically, EVs have enjoyed lower tax rates compared to petroleum vehicles. However, as the government starts raising EV taxes due to lost revenue, businesses are importing as many EVs as possible in advance. A similar pattern was observed last fiscal year when the EV tax was hiked after pre-budget indications. Most EV imports into Nepal come from China, entering through Tatopani and Rasuwagadhi customs points.

Kathmandu-Tarai Fast Track Project Achieves 39% Progress:

Construction of the Kathmandu–Tarai–Madhesh Expressway (Fast Track) has reached 39% completion. The Nepali Army, which is overseeing the project, reported a financial progress of 39.34% by the end of Chaitra, with mobilization costs raising the total financial expenditure to 41.06%. The project is being executed in 13 construction packages. However, land acquisition issues remain unresolved in some areas, notably in the Khokana–Bungmati section. Nepali Army spokesperson Gaurav Kumar KC said the project’s starting point and traffic management plans are still under discussion, delaying the procurement process. Coordination is ongoing to distribute compensation for affected landowners in the disputed areas.

Government’s New Policy Program Boosts Private Sector Confidence:

The government’s policy and program for fiscal year 2082/83 B.S. (2025/26) has uplifted the confidence of the private sector. The document, presented in the Federal Parliament by President Ramchandra Paudel last Friday, outlines economic reforms, infrastructure development, and job creation as top priorities. The government also aims to foster an investment-friendly environment to encourage private sector participation. Key areas identified for large-scale investment include energy, tourism, and information technology. Business leaders say the policy program boosts private sector morale and seeks to address existing economic challenges.

Energy Minister Khadka Approves Power Purchase Agreement with India’s Bihar and Uttar Pradesh:

Energy Minister Deepak Khadka has decided to approve the power purchase agreement signed by Kulman Ghising, the former Executive Director of Nepal Electricity Authority (NEA), during a meeting of the Nepal-India Power Exchange Committee (PEC) held in New Delhi on January 30. The NEA board of directors decided to send the approval to the cabinet. The PEC meeting agreed that Nepal would purchase electricity from India’s Bihar and Uttar Pradesh through a 132 KV transmission line at a rate of NPR 8.1 per unit, up from NPR 7.98 per unit. The agreement, which is valid for one year starting from April 1, is now going through the NEA board and the Electricity Regulatory Commission’s approval process.

Ncell Recognized for Paying Highest Tax in ICT Sector by Nepal Government:

The government has honored Ncell as the highest tax-paying company in the Information and Communications Technology (ICT) sector. The recognition was given on the occasion of the 8th National Information and Communications Technology Day. Prime Minister KP Oli presented a certificate of recognition to Poonam Singh, Ncell’s Director of Marketing, Communications, and Sustainability, for the company’s significant contribution to the development, expansion, and prosperity of the ICT sector in Nepal. Ncell was also acknowledged for paying the highest tax in the ICT sector in the fiscal year 2020/21.

Employer Registration in Social Security Fund Drops by Over 21%:

Employer registration in Nepal’s contribution-based Social Security Fund (SSF) dropped by 21.6 percentage points this year compared to last year, according to a report released by the General Federation of Nepalese Trade Unions (GEFONT). While 69.4% of businesses had registered in the previous year, only 47.8% did so this year. The report also notes that while 70% of registered businesses made regular contributions last year, that number has dropped to just 44.4% this year.
GEFONT General Secretary Janak Chaudhary said that 55.6% of registered businesses have failed to deposit contributions regularly, despite being listed in the SSF.

Nepal’s Refined Soybean Oil Exports to India Surge by 76 Times, Reaching NPR 6.28 billion:

Recently, the export of refined soybean oil from Nepal to India has sharply increased. The soybean oil is processed in Nepal after importing crude oil from abroad and then exported in large quantities. Official government statistics show that the export of refined soybean oil from Nepal has increased by 76 times during the first nine months (July–March) of the fiscal year 2021/22. This is equivalent to NPR 6.28 billion. Although it is positive for goods and services to be exported, economists say that the export of soybean oil at such an abnormal rate raises questions. The high demand for soybean oil in neighboring India has contributed to this sudden surge in exports. However, there are concerns about the sustainability of this abnormal export. It is unclear whether this kind of export can last in the long run.

Tree-Cutting Begins for Dry Port Construction in Dodhara Chandani:

Tree-cutting has begun for the construction of a dry port at Dodhara Chandani Rural Municipality–1 in Kanchanpur. Anish KC, an engineer at the Nepal Intermodal Transport Development Board, confirmed that tree removal started a week ago. “So far, 500 trees have been cut, and a total of 1,593 trees need to be cleared for the port’s construction,” KC stated. The tree-cutting contract is valued at Rs 4.1 million. The dry port is being constructed with financial and technical support from the Government of India, following a Memorandum of Understanding signed between Nepal and India on June 1, 2023. Work is progressing as per the bilateral agreement.

Karnali’s Dairy Subsidy Program Proves Beneficial for Farmers:

The dairy production incentive program implemented by the Karnali provincial government is proving effective, benefiting local farmers. Since fiscal year 2078/79 B.S. (2021/22), the government has been depositing subsidies directly into farmers’ bank accounts to encourage milk production. According to the Ministry of Land Management, Agriculture, and Cooperatives, farmers in Himalayan districts receive Rs 10 per liter in subsidies, while those in other districts receive Rs 5. Farmers in Humla, Mugu, Dolpa, Jumla, and Kalikot receive Rs 10 per liter, while those in Surkhet, Dailekh, Salyan, Jajarkot, and Western Rukum receive Rs 5.

661 Startups Selected for Subsidized Government Loans:

A total of 661 startups have been selected for subsidized government loans in the current fiscal year. The government had announced through the annual budget its plan to provide startup loans at 3% interest. Out of 1,314 eligible projects that applied, 1,073 were shortlisted for presentations, and 661 have now been approved for the loans. The Industrial Enterprise Development Institute (IEDI) has already recommended these startups to Rastriya Banijya Bank (RBB) to disburse the loans. The selected companies have been advised to contact their nearest RBB branch to receive the funding.

Businesses Struggle at Kerung Border Due to Pass Restrictions:

Businesses are facing difficulties in importing and exporting goods through the Kerung border with China due to travel pass restrictions. Currently, only residents of Rasuwa district are eligible for the pass to enter Kerung. This restriction has created problems for traders and drivers from other districts, even though billions of rupees worth of trade takes place through the route annually. Since last year, traders have been requesting the government to issue passes for representatives, drivers, and helpers from other districts as well. “Despite repeated calls, the government has ignored the issue. It has become nearly impossible to conduct bilateral trade via Kerung,” said a trader, Kumar Karki. He criticized the government for making hollow promises without taking action.

Koilabas Customs Office Fails to Meet Revenue Target, Collects 64.35% of the Goal:

The Koilabas Customs Office has collected NPR 104,092,999 in revenue during the first nine months of the current fiscal year (2024/25). This is 64.35% of the target set for the fiscal year, which was NPR 163,606,000. The office failed to meet the target, and the reduction in traffic at the customs checkpoint has been cited as a reason for the shortfall. In the month of Chaitra, the office aimed to collect NPR 1.2 million, but only managed to collect NPR 923,862, which was 76.99% of the target.

Work on Controversial 132 KV Transmission Line Resumes Under Security Surveillance in Banke:

Work has resumed in the controversial location of Baniyabhar, Banke, where a 132 KV transmission line is being constructed under the surveillance of security personnel. Local residents had repeatedly blocked the construction of the transmission line with various demands. To overcome the obstructions, security forces have been deployed to facilitate the construction of three towers and the cutting of trees. Approximately 200 trees need to be cut around Baniyabhar for the project. Earlier, locals had gone to court, requesting an alternative solution, but the court dismissed their petition. Despite the court’s ruling, the local resistance remained. Only three towers need to be constructed in Baniyabhar, and the land acquisition for the construction will affect the land of about 75 people.

Hailstorm Damages Apple Orchards in Jumla, Farmers Express Concerns:

Jumla’s primary economic base, apple farming, has been severely affected by hailstorms. The hailstorm, which struck on Wednesday, caused significant damage to apple crops just as they were beginning to flower. The hailstorm damaged apples in various parts of the district, including in Guthichaur Rural Municipality-3, where nearly 1,500 apple saplings were affected. Farmer Norbu Lama said, “I left the hotel business and started apple farming. I was expecting a good yield this year, and the flowers were blooming well. But the hailstorm destroyed everything. Not only the government, but nature also deceives the farmers from time to time. The concern over reduced production is overwhelming.” Lama had planted 1,500 apple saplings last year and was hoping for a good harvest.

Karnali Ministry Starts 1,016 Projects, Weak Progress in Rukum West and Surkhet:

The Ministry of Water Resources and Energy Development in Karnali has signed agreements and started work on 1,016 out of 1,273 planned projects. According to a recent report, 257 projects are still in the process of finalizing agreements. However, the ministry noted that Rukum West and Surkhet are facing weak implementation of their respective projects. In Rukum West, 117 out of 164 projects have been contracted, and in Surkhet, 124 out of 161 projects have been contracted. The physical progress in these districts stands at only 20% in Rukum West and 25% in Surkhet. In Dailekh, 120 out of 145 projects have been contracted, with 25 projects yet to be contracted.

Jhapa Transport Office Registers 9,954 New Vehicles, Collects NPR 82.16 million Revenue:

The Transport Office of Jhapa has collected NPR 82.16 million in revenue during the first nine months of the fiscal year 2024/25. In March alone, the office collected NPR 15.7 million. According to office chief Prem Prasad Sapkota, the revenue was collected from various sources, including NPR 69.06 million from vehicle taxes, NPR 9.96 million from the transportation sector, and NPR 12.12 million from driver’s license fees. During this period, 9,954 new vehicles were registered in the district. The district had a total of 206,884 registered vehicles by the end of the fiscal year 2024/25.

Gold Price Increases by Rs 500 per Tola, Silver Remains Unchanged:

The price of gold in the Nepali market rose by Rs 500 per tola on Monday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of gold reached Rs 184,600 per tola, up from Sunday’s Rs 184,100. Meanwhile, the price of silver remained unchanged at Rs 1,910 per tola, the same as on Sunday.