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 Falls by 11.97 Points Amid Declining Market Activity: On Wednesday, the Nepal Stock Exchange (NEPSE) index dropped by 11.97 points, closing at 2,646. This decline was accompanied by a fall in trading volume, which decreased to NPR 516 crore from NPR 667 crore the previous day. Among the companies, 66 saw their share prices rise, 181 declined, and one remained unchanged. Most sector indices fell, with finance leading the losses, down 0.90%. Other sectors that declined include banking (-0.59%), development banks (-0.71%), hotels and tourism (-0.47%), hydropower (-0.39%), investment (-0.08%), life insurance (-0.48%), microfinance (-0.82%), and non-life insurance (-0.68%).

Exporters Submit Seven-Point Plan to PM Oli for Export Promotion and Economic Growth: A delegation of Nepali exporters, led by newly elected President of the Federation of Export Entrepreneurs Nepal, Govinda Bahadur Ghimire, met with Prime Minister KP Sharma Oli on Wednesday and submitted a seven-point proposal aimed at boosting exports, generating employment, and building national capital. During the meeting held at the Prime Minister’s residence in Baluwatar, the exporters urged the government to implement export-friendly strategies announced in the recent national budget. They also drew attention to issues that remain unaddressed and called for concrete policy measures to support export-led growth and reduce dependence on imports.

Govt Commits to Effective Implementation of Infrastructure Budget, Says Finance Minister Poudel: Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has said the government is committed to the effective implementation of the budget allocated for infrastructure development projects. Speaking at an interaction program on “Budget Implementation in Infrastructure,” organized by the Nepal Infrastructure Journalists Society, Minister Poudel emphasized upholding the credibility of the budget and strictly adhering to financial discipline. Admitting that capital expenditure in the past had not met expectations, Minister Poudel expressed firm determination to improve it in the current fiscal year.

No Plans Below Rs 30 million in Next Budget, Says Infrastructure Minister Dahal: Minister for Physical Infrastructure and Transport Devendra Dahal stated that the upcoming budget will not include plans costing less than Rs 30 million, and that the government should now move toward including only projects above Rs 50 million. Speaking at a discussion jointly organized by the Nepal Infrastructure Journalists Society and the Federation of Contractors’ Associations of Nepal, he clarified, “This will make it easier to allocate budget to large and impactful projects.”

Kiran Pandit Appointed Spokesperson of Nepal Rastra Bank: Kiran Pandit, Executive Director of Nepal Rastra Bank, has been appointed as the new spokesperson. Previously serving as the head of the Payment Systems Department, Pandit has now been given the additional responsibility of spokesperson. Earlier, Executive Director Ramu Paudel was the spokesperson. However, with Governor Biswo Nath Poudel transferring Ramu to the Bank Supervision and Printing Departments, a new spokesperson was appointed. Kiran Pandit will now hold dual roles as the head of the Payment Systems Department and the spokesperson of Nepal Rastra Bank.

Forest Ministry Sees Historic Budget Increase: Among the past decade of post-constitution budgets, this year’s allocation for the Ministry of Forests and Environment has increased significantly. According to Minister Ain Bahadur Shahi, the budget has risen by 18.5 percent compared to last year. As per data provided by the Ministry, the increase last year was only one percent compared to the previous year.

IPPAN Urges Government to Scrap Take-and-Pay PPA Provision: The Independent Power Producers’ Association, Nepal (IPPAN), has urged the government to remove the take-and-pay provision in hydropower PPAs outlined in the budget. IPPAN submitted a memorandum to Minister for Energy, Water Resources, and Irrigation Deepak Khadka, warning that such a policy could collapse the entire sector. Minister Khadka remarked that introducing take-and-pay after laying out a 28,500 MW power roadmap was a serious mistake.

Both Parties Must Submit Bank Statements for Land Transactions: Both buyers and sellers must now compulsorily submit bank statements when carrying out land transactions. The Department of Land Management and Archives has issued circulars to all land revenue offices directing this procedure. According to the letter, buyers must show that the transaction amount was deposited into the seller’s bank account, and both parties must also fill out customer identification forms at their respective banks.

Minister Khadka Seeks Uruguayan Support for Solar and Wind Energy: Minister for Energy, Water Resources, and Irrigation Deepak Khadka has expressed hope for Uruguay’s support in promoting solar and wind energy in Nepal. In a courtesy meeting with Uruguay’s non-resident ambassador to Nepal, Alberto A. Guani, held at the ministry in Singha Durbar, Minister Khadka praised Uruguay’s success in renewable energy and urged for identification of investment and technical cooperation opportunities in Nepal.

Trade with Bangladesh Through Kakarbhitta Hits Rs 4.75 billion in Imports: By the end of Baisakh in FY 2081/082 (2024/25), Nepal imported goods worth Rs 4.75 billion from Bangladesh via Kakarbhitta, while exporting goods worth Rs 356.3 million. According to Subash Pandey, head of the Nepal Transit and Warehousing Company Limited’s Kakarbhitta branch, the top import was unprocessed jute worth Rs 1.78 billion. Other imports included batteries, poultry feed supplements, cosmetics, hydrogen peroxide, jute yarn, electronic devices, medicines, potatoes, paper, glass, and food and beverage items.

National Cooperative Federation Lobbies to Soften New Financial Standards: Just a week after new regulatory standards for cooperative savings and loan operations were issued, the National Cooperative Federation has started lobbying to soften them. The federation has objected to nearly 18 points in the “Regulatory Standards 2082” issued by the Cooperative Regulatory Authority. Chairperson Om Devi Malla said the federation disagrees with provisions such as 15% mandatory liquidity, restrictions on cooperatives with over 15% non-performing loans, and a ban on using third-party collateral.

UAE Accounts for 40% of Nepal’s Foreign Employment: About 40 percent of Nepal’s foreign employment is concentrated in the United Arab Emirates (UAE), according to the Economic Survey 2081/82 (2024/25) released last week by the Finance Ministry. By the end of Falgun this fiscal year, 317,063 labor permits were issued for the UAE, making up 39.36% of total approvals. In the same period last year, the UAE accounted for 28% of the 285,382 approvals. Director General of the Foreign Employment Department, Kamal Prasad Bhattarai, said demand for Nepali workers rose sharply as the UAE’s tourism sector bounced back post-Covid.

Discussions on Trading Government Bonds in Secondary Market Ongoing: It has been a long-standing issue to trade government bonds in the secondary market in Nepal. This topic has repeatedly appeared in government budgets. However, the main obstacle to implementing this is that the Public Debt Management Office itself, which has the authority to trade bonds in the secondary market, has yet to operationalize it. Finance Minister Bishnu Prasad Paudel has once again included this issue in the upcoming fiscal year 2082/83 budget. He has proposed trading government bonds in the secondary market as part of the budget.

30-Year Delay, Foreign Donor Interference Stall Budhiganga Hydropower Project: Construction of the Budhiganga Hydropower Project has stalled due to government apathy, silent political representatives from Achham, and foreign donors rejecting agreements under various pretexts. The project study began nearly 30 years ago. Situated in Sanfebagar Municipality–10, the 20-MW project is to be built with loans from Qatar and Saudi Arabia. Project chief Surendra Ghimire said the project, located 900 kilometers from Kathmandu, is expected to help reduce load shedding and contribute to Nepal’s socio-economic development.

Chemical Fertilizer Budget Increased by Rs 870 million: The government has increased the budget for chemical fertilizer procurement by Rs 870 million for FY 2082/83 (2025/26), raising the total to Rs 28.82 billion. The quota for fertilizer purchase has also been raised to 600,000 metric tons, up from 550,000 metric tons in the current fiscal year for which Rs 27.95 billion had been allocated. The move aims to ease the fertilizer supply chain in the coming year.

1,200-MW Budhigandaki Project Stuck Despite Company Formation: Despite forming a company to build the 1,200-MW Budhigandaki Hydropower Project with domestic investment, the project remains stalled due to disputes over the investment model. The government established Budhigandaki Hydropower Company Limited on 17 Bhadra 2079 (September 2, 2022), but further progress has been hindered. Although discussions have taken place repeatedly about different investment models for developing the project, no concrete decision has been reached yet.

Nepali Oil Industries Discuss Strategies to Counter India’s Cut in Raw Edible Oil Tariffs: Nepali industrialists are in discussions to devise strategies to mitigate the impact of India’s reduction of basic customs duty on raw edible oils. India has recently reduced its customs duty on raw oils such as soybean, sunflower, and palm oil from 27.5% to 10%. About two dozen vegetable oil industries in Nepal consider India their main market. With India cutting its import tariffs by more than half, Nepali industries expect to face challenges. The oil industry is currently discussing how to overcome the potential difficulties arising from India’s recent decision.

Foreign Tourists Are Staying Longer in Nepal: The length of stay of foreign tourists visiting Nepal has started to increase. According to the Ministry of Culture, Tourism and Civil Aviation, the average duration of stay per tourist in 2024 reached 13.30 days. In 2023, the average stay was 13.20 days. This average stay duration is the highest in the last three years. Previously, in 2021, the average stay was 15.50 days. This data does not include the number of Indian tourists who arrived via land routes. According to the ministry, in 2024, 123,611 tourists arrived via land, while 1,023,937 entered by air. A total of 1,147,548 tourists arrived in Nepal.

Per Capita Income in Sudurpashchim Province Increases by $42 in Current Fiscal Year: In the current fiscal year 2081/82 (2024/25), the per capita income in Sudurpashchim Province has increased by 42 US dollars. The Economic Survey of the fiscal year estimates that the per capita income of Sudurpashchim citizens will rise from 1,111 to 1,153 US dollars. This per capita income is still 343 US dollars less than the national average. Madhesh Province has the lowest per capita income at 932 US dollars, while Bagmati Province has the highest at 2,601 US dollars. Karnali Province, with weaker per capita income than Sudurpashchim, stands at 1,089 US dollars. Lumbini Province’s per capita income is 1,201, Koshi Province’s is 1,401, and Gandaki Province’s is 1,620 US dollars.

Bhatbhateni to Establish High-Tech Garment Industry in Bhairahawa: The Bhatbhateni Group is set to launch a state-of-the-art garment factory in Bhairahawa. Chairman Min Bahadur Gurung, along with entrepreneur Umesh Shrestha and others, laid the foundation stone on Wednesday with a religious ceremony. “This new project marks a significant step in Bhatbhateni’s business diversification and signals a positive shift in Nepal’s industrial climate,” said COO Panu Poudel. The factory aims to create around 1,200 jobs, utilizing local manpower and contributing to regional economic development.

Everest Bank Launches IBL Virtual Credit Card Service: Everest Bank Limited has started its IBL Virtual Credit Card service for its customers from Jestha 20, 2082 (June 3, 2025), as part of expanding its digital services. The IBL Virtual Credit Card is a fully digital card that can be used directly through the bank’s mobile banking application. Customers of the bank can use this service by meeting the minimum eligibility criteria set by the bank. Through this service, users can utilize a virtual credit limit ranging from a minimum of NPR 50,000 to a maximum of NPR 500,000 to make payments via PhonePe QR scanning.

Gold Prices Rise by Rs 5,400 Per Tola in a Week: Gold prices have surged continuously in recent days, increasing by Rs 5,400 per tola within a week. On Jestha 15 (May 29), the price per tola was Rs 187,800, which rose to Rs 193,200 today. On Wednesday alone, gold rose by Rs 500 compared to the previous day. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price stood at Rs 192,700 per tola previously. Silver also rose by Rs 30 per tola, from Rs 2,045 to Rs 2,075.