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 Index Rises by 17.44 Points; Banking Sector Leads Market Rally: The Nepal Stock Exchange (NEPSE) index rose by 17.44 points on Wednesday, reaching a new level of 2,693 points. Alongside the market index, trading volume also saw a notable increase. Compared to the previous day’s turnover of Rs 6.52 billion, today’s trading surged to Rs 8.58 billion. A total of 148 companies saw an increase in their share prices, while 97 declined and 2 remained unchanged. The market began its upward trend after 2:10 PM. The banking sector made the most significant contribution to the overall growth. While NEPSE climbed by 0.61%, the banking sector alone rose by an impressive 1.88%.

SC Issues Show-Cause Order Over Appointment Of Poudel As NRB Governor: The Supreme Court has issued a show-cause order in response to a writ petition filed against the appointment of Dr. Biswo Nath Poudel as the Governor of Nepal Rastra Bank. The court has also summoned both parties for a discussion on the matter. The bench of Justice Abdul Aziz Musalman issued the show-cause order concerning the governor’s appointment.

NRB to Withdraw Rs 80 billion from Banking System in a Single Day: Nepal Rastra Bank is set to withdraw 80 billion rupees from the banking system on Wednesday. Lately, due to excess liquidity in the market, Rastra Bank has been continuously withdrawing deposit amounts from the banking system. Rastra Bank has called for a bidding (auction) for 21 days, in which banks and financial institutions can participate. The bidding time has been set for Sunday at 3 PM. Banks and financial institutions can bid a minimum of 100 million rupees and, by dividing the maximum into parts of 50 million, can bid up to the total called amount.

Government Supports Fixed Interest Rate Policy but Remains Silent on Rate: The Government of Nepal has expressed support for a fixed interest rate policy as recommended by the High-Level Economic Reform Commission led by former Finance Secretary Rameshwor Khanal. However, the government has not clarified the specific rate to be implemented. While the private sector demands a 5.5% cap, bankers suggest a fixed rate between 9% to 10% could be more realistic. The issue remains under discussion as part of the broader economic reform agenda.

National Project Bank Standards to Apply Across All Levels from This Year: According to constitutional provisions, project bank standards will apply at federal, provincial, and local levels starting this year. As the government enters the final phase of preparing the upcoming budget, the National Planning Commission has advised placing only projects above Rs 30 million at the federal level, above Rs 10 million at the provincial level, and small projects at the local level in the Project Bank. Using the constitutional authority of exclusive rights, the federal government has formulated the “National Project Bank Standards 2081”, specifying budget thresholds for all three levels.

15-Day Ultimatum to 21 Companies for Unpaid Taxes: After failing to pay due taxes, the Medium-Level Taxpayers Office has given a 15-day ultimatum to 21 companies. According to the office, these companies owe income tax, value-added tax (VAT), and excise duty. If taxes are not paid within the given time, the office warned that it would initiate recovery procedures as per the law. Among the non-compliant companies are Shri Laligurans Multipurpose Cooperative, Shikhardeep Multipurpose Cooperative, which are now declared troubled institutions. Mount Everest Brewery, Sanbhi International, Bishal Cement, Pokhara’s Salvage Department Store, and Gorkha Department Store have also been given ultimatums.

UAE and UK Propose Double Tax Avoidance Agreements to Nepal: The United Arab Emirates (UAE) and the United Kingdom (UK) have sent proposals to Nepal for Double Taxation Avoidance Agreements. Along with expressing interest to invest in Nepal, they sent separate proposals to the Investment Board. When an individual earns income in a foreign country, they must pay income tax there. Then, if they repatriate the money, they must pay tax again in their home country. To relieve them from this “double tax” burden, countries sign bilateral agreements.

Government Preparing to Lift Ban on Construction Material Exports, Defying Court Order: Despite a Supreme Court order prohibiting it, the government is preparing to allow the export of construction materials such as stones, gravel, and sand. According to officials at the Ministry of Industry, Commerce, and Supplies, the proposal may be included in the upcoming FY 2082/83 budget, or implemented via the economic reform action plan. The move is likely to stir legal and environmental controversies, as it contravenes judicial restrictions aimed at protecting Nepal’s fragile ecosystems.

Pushpalal Mid-Hill Highway Gets Top Budget Priority: The upcoming year’s budget has given special priority to the Pushpalal (Mid-Hill) Highway Project. This strategic highway stretches 1,879 kilometers from Panchthar in the east to Baitadi in the west, with the project’s cost now reaching around Rs 100 billion. The initial estimated cost was Rs 33 billion. Including expansion and cost increases, it was estimated to reach Rs 84.33 billion by the last fiscal year. Now, the Ministry of Physical Infrastructure estimates it to reach Rs 100 billion. The project, which began in fiscal year 2064/65 BS (2007/08 AD), aims to be completed by fiscal year 2084/85 BS (2027/28 AD).

Government to Review Minimum Wage Based on Inflation: The government has brought forward a plan to raise workers’ wages. The Cabinet meeting on Jestha 6 (May 20) approved a plan to review wage rates within the next year based on inflation (price rise). While approving the action plan to implement the Economic Reform Commission’s report led by Rameshwor Khanal, the government pledged to review labor wages. According to the plan, workers’ wages will be reviewed within a year.

NEA Publishes List of Top 10 Electricity Consumers in Nepal: The Nepal Electricity Authority (NEA) has released the names of its top ten electricity consumers based on high power usage and regular bill payments. The list is dominated by large-scale industries, particularly from the steel and cement sectors. The top consumers include: Sarbottam Steel Ltd, Goyal Ispat Pvt. Ltd, Premier Steel Pvt. Ltd, Hongshi Shivam Cement Pvt. Ltd, Swastik Rolling Mills, Vijayashree Steels Ltd, Aarti Strips Pvt. Ltd, Shree Steels Pvt. Ltd, Hulas Wire Industries Ltd, and Jagdamba Wires Pvt. Ltd.

Over 1.2 million Life Insurance Policies Inactive Due to Lapse or No Renewal: A high number of life insurance policies have become inactive due to surrender or non-renewal. Currently, there are 14 large life insurance companies and 3 micro-life insurance companies operating in Nepal. Among them, 1,246,301 life insurance policies worth Rs 36.87 billion have lapsed and remain inactive. This data is from the Insurance Authority up to the end of Chaitra (April) of the current fiscal year 2081/82 BS.

Landslide-Damaged Narayanghat–Muglin Road Not to Be Rebuilt This Fiscal Year: Due to budget shortages, the 165-meter collapsed section of the Narayanghat–Muglin road will not be rebuilt this fiscal year. The road had collapsed during heavy rainfall last Ashoj (September). An 85-meter-long and 3.5-meter-wide section had sunk 8 meters down. Other parts have cracks and need rebuilding together, according to Narayan Lamichhane, chief of the Division Road Office.

Koshi Province Races to Prepare Budget for Fiscal Year 2082/83: Koshi Province is accelerating preparations for the budget for fiscal year 2082/83 BS (2025/26 AD). Simultaneously, there is a rush in ministries to register project proposals. From ministers and MPs to local representatives, lobbying to include regional projects is intensifying up to the Chief Minister’s level. In the past, projects were selected through an opaque and unscientific “discretionary system”, which drew sharp criticism. To address that, the government has introduced the concept of a “Project Bank” from this year.

Jadgulla Hydropower Issues Letter of Intent for EPC Contract: Jagdulla Hydropower Company Limited has issued a letter of intent for the civil and hydro-mechanical EPC (Engineering, Procurement, and Construction) contract. The joint venture of Jiangxi Construction Engineering (Group) Corporation (China) and ANK Construction Nepal, which quoted Rs 12.15 billion excluding tax, has been declared qualified, and the letter was issued on Tuesday. If unsatisfied, Sino Hydro Corporation can file a complaint with the Public Procurement Review Committee within 15 days, said CEO Sanjay Sapkota.

Citizens Bank Clients to Get Discount at Hilton Hotel: An agreement has been reached to provide special discounts to customers of Citizens Bank International at Hilton Hotel. According to the agreement, cardholders, privilege cardholders, and mobile banking users of Citizens Bank will get up to 10% discount at Hilton Kathmandu. The bank believes such collaboration will not only benefit customers but also encourage digital transactions over cash. The bank has been introducing customer-friendly digital services to promote digital payments.

IPO of Trade Tower Company Opens Today for General Public: The ordinary shares (IPO) of Trade Tower Company have opened from today. The company, which had already issued IPOs for Nepalis living abroad, has opened IPO applications for the general public starting Wednesday. The company received approval to issue 3,971,693 units of shares with a face value of Rs 100 each, equivalent to Rs 3.97 billion, which is 48.696% of its issued capital of Rs 8.15 billion.

Himalayan Life Insurance Declares 8% Cash Dividend: Himalayan Life Insurance Company has announced an 8% cash dividend from its profit for the last fiscal year (2079/80 BS). The decision was made at a board meeting held on Jestha 14 (May 28, 2025). Based on the company’s current paid-up capital, a total of Rs. 731.45 million will be distributed to shareholders as cash dividends.

Agriculture and Livestock Service Center Inaugurated in Dhading: Minister for Agriculture and Livestock Development, Ramnath Adhikari, has inaugurated a newly built Agriculture and Livestock Service Center in Tripurasundari Rural Municipality of Dhading district. Constructed under the Rural Enterprise and Economic Development (REED) Project, the center is expected to provide services such as soil testing, crop advisory, and animal disease diagnostics, helping local farmers access timely and affordable support.

Gold Price Drops by Rs 1,600 per Tola: On Wednesday, the price of gold dropped by Rs 1,600 per tola (11.66 grams). The Federation of Nepal Gold and Silver Dealers Association fixed the price at Rs 189,300 per tola. The previous day’s price was Rs 190,900 per tola. On Baisakh 9, gold had reached its all-time high of Rs 197,900 per tola. Despite the drop in gold price, silver increased by Rs 10 per tola. The price of silver, which was Rs 1,995 the previous day, rose to Rs 2,005 today.