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 Gains 23.19 Points, Closes at 2,653 Amid Broad Market Rally: The Nepal Stock Exchange (NEPSE) index rose by 23.19 points on Monday, ending the day at 2,653 points. More than 17.5 million shares, worth around Rs. 8.69 billion, were traded across 324 companies, with a total of 78,848 transactions recorded. Of the listed companies, 191 posted gains, 56 declined, and one remained unchanged. Out of the 13 sectoral indices, all except Hotel & Tourism, Life Insurance, and Trading sectors registered positive growth, fueling the overall market rise.

Finance Minister Paudel Highlights Benefits of Passed Customs Bill, 2080: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel stated that the passage of the Customs Bill, 2080 will make it easier to control revenue leakage. Speaking during Monday’s National Assembly session, Paudel responded to questions raised by members regarding the proposal to consider the Customs Bill, 2080, which was sent from the House of Representatives with a message. He emphasized that with the bill’s enactment and implementation, the customs system will become more transparent and reliable, while significantly facilitating international trade.

Nepal Rastra Bank’s Loan Portfolio Review Process to be Delayed: The ongoing loan portfolio review process initiated by Nepal Rastra Bank (NRB) for commercial banks is now set to be delayed following an interim order issued by the Supreme Court. The order was issued on Jestha 23 (June 6) by a single bench of Justice Hari Prasad Phuyal, in response to a writ petition filed a day earlier by Satish Subedi, director of Subedi & Associates, located in Jawagal, Lalitpur. While hearing the petition, the court ordered a short-term interim stay and demanded a written explanation from the opposing party. A full discussion on whether the interim order should continue will take place on Asar 9 (June 23), when both parties are summoned for a hearing. Until then, the NRB’s loan review process will remain suspended.

Policy Confusion Alarms Nepal’s Energy Producers: While the government’s official plans aim to transform Nepal into a regional electricity exporter with a target of generating 28,500 megawatts of electricity over the next decade — including 10,000 MW for India and 5,000 MW for Bangladesh — recent policy decisions appear to contradict this ambition. A new provision requiring Power Purchase Agreements (PPAs) with run-of-river hydropower projects to follow a “take-and-pay” model instead of the more secure “take-or-pay” system has alarmed investors. Energy producers warn this move undermines investor confidence and could stall Nepal’s hydropower boom.

Power Export to Bangladesh Uncertain as LC Not Opened: Although Nepal is supposed to export 40 MW of electricity to Bangladesh starting Asar 1 (June 15), Bangladesh has not opened a Letter of Credit (LC) by end of Jestha. This raises uncertainty over whether exports can begin in six days. Nepal had exported power to Bangladesh in November 2023, but Bangladesh Power Development Board (BPDB) has not yet paid dues. Nepal Electricity Authority spokesperson Rajan Dhakal confirmed that exports are scheduled to start from June 15 under the agreement.

Government Identifies 1 million Poor Households Across Nepal: The Ministry of Land Management, Cooperatives and Poverty Alleviation has identified around 1 million poor households across Nepal under its ongoing “Poverty Identification Program,” which began 12 years ago. According to preliminary data prepared by senior officials, the ministry has categorized the poor into three tiers: extremely poor, poor, and marginally poor. The classification aims to better target social security and relief programs for the most vulnerable. The ministry plans to use this data to expand access to welfare programs and prioritize support for the extremely poor.

Gold Traders Prepare for Protest After New Luxury Tax and VAT on Jewelry: After the government imposed a luxury tax on gold and VAT on diamonds for the upcoming fiscal year 2082/83 (2025/26), gold traders are preparing for protest. According to traders affiliated to the Federation of Nepal Gold and Silver Dealers’ Associations, the decision will jeopardize their business. A national gathering will be held on Asar 4 (June 18) to announce protests. The government has imposed a luxury tax on gold and 13% VAT on diamonds. In response, traders are preparing for protest.

Former Nepal Bank Chair Faces Three Bribery Charges: The Commission for the Investigation of Abuse of Authority (CIAA) has decided to file three bribery cases against Dr. Chandra Bahadur Adhikari, former chairman of government-owned Nepal Bank Limited. He allegedly took bribes and commissions while disbursing loans. CIAA will file these cases at the Special Court. Sources said CIAA is preparing to file the cases today. Adhikari was taken into custody for investigation on Magh 29, 2081 B.S. (February 11, 2025).

Lock-In Period Ending for Four Hydropower Companies in mid-July: In the end of Asar (mid-July), the lock-in period for local and founder shares of four hydropower companies will end. Once the lock-in period ends, these shares will be traded at regular prices, increasing share numbers and possibly reducing prices. Companies have already issued notices a month in advance. The companies are Bindhyabasini Hydropower, Dordi Khola Hydropower Company, Himalayan Hydropower, and Upper Solu Hydro Electric Company.

573,682 New Taxpayers Added by End of Chaitra: By the end of Chaitra of the current fiscal year 2081/82 (2024/25), a total of 573,682 new taxpayers have been registered. According to the Ministry of Finance, new PAN numbers were issued for personal, business, and advance tax deduction categories. Out of the total, 480,070 are individuals. An additional 91,733 businesses were registered, bringing the total number of business taxpayers to 2,035,874.

Farmers Receive Rs 848 million in Agriculture and Livestock Insurance Payouts: Farmers have received Rs 848 million in compensation for crop and livestock insurance up to the end of the last fiscal year. This payout was for the premium paid to non-life insurance companies. The government’s delay in providing subsidies to insurance companies under the working procedure has affected policy sales. As of end-Baishakh of this fiscal year, insurance companies have sold a total of 122,852 policies, according to Nepal Insurance Authority.

Google Plus Code Now Mandatory for Manpower License Renewal: The Department of Foreign Employment has mandated manpower agencies to provide their digital address (Google Plus Code) when renewing licenses. Agencies must also include Google location on their websites. This new rule was announced in a notice published by the department on Jestha 26 (June 9).

Chartered Accountants Warn Against Unchecked Tax Exemptions: Chartered accountants and stakeholders have advised the government to evaluate the long-term economic impacts of tax exemptions. During a discussion hosted by the Institute of Chartered Accountants of Nepal (ICAN), speakers said repeated exemptions could undermine tax discipline and create a sense of injustice among taxpayers.

Inconsistent Parliamentary Directions Hinder Betel Nut Export: Conflicting directives from Nepal’s House of Representatives and National Assembly committees have created confusion over the export of Nepali-produced betel nut (supari). On Sunday, the National Assembly’s Development, Economic Affairs, and Good Governance Committee, chaired by Kamala Panta, discussed revising the directive requiring DNA testing for exports, but opposition from fellow Nepali Congress lawmakers stalled any decision. Traders complain that while domestic betel nut exports face strict DNA test requirements, importing foreign betel nut remains easier — hurting local producers and exporters.

Hard Cheese Export via Birgunj Increases Rapidly: Exports of chhurpi (hard cheese) to third countries via Birgunj have seen a significant rise. Nepali chhurpi has gained market access in Europe and the U.S., especially in the U.S., Australia, and Canada. According to Birgunj Customs, 495,686 kg of chhurpi worth Rs 880 million was exported up to Baishakh of the current fiscal year, compared to 294,215 kg worth Rs 530 million during the same period last year.

Cable Car Infrastructure and Temple Boost Tourism in Palpa: Tourist infrastructure, including the upper station of a cable car and the Kamakhya Devi Temple, has increased attraction among tourists, Hindu devotees, and Indian visitors at the long-quiet Basantapur Hill in Tinau. Lumbini Cable Car Limited has completed two years of operation and entered its third year. The cable car began commercial operation on Jestha 15, 2080 (May 29, 2023), and was officially inaugurated on Jestha 25, 2080 (June 8, 2023). The cable car connects Bamghat in Butwal-3 (lower station) with Basantapur in Tinau Rural Municipality-3, Palpa (upper station).

53% Work Completed on Muglin–Pokhara Road West Section: Under the Muglin–Pokhara Road Expansion Project, 53% work on the western section has been completed. The section stretches from Jamune in Tanahun to Seti Bridge in Pokhara. Project Chief Krishna Bahadur Kunwar said that blacktopping is completed in 24 km two-way and 12.8 km one-way stretches. Remaining 3 km of one-way blacktopping will be completed by end of Jestha.

Butwal–Narayanghat Road Expansion Only 67% Complete in 7 Years: Although the contract for the Butwal–Narayanghat road expansion was signed on Magh 24, 2075 (February 7, 2019) with a 3.5-year completion deadline, physical progress is only 67% even after 7 years. China State Construction Engineering Corporation began work in Chaitra 2075 after signing the contract with the Department of Roads.

Piplemod Section of Nagdhunga–Naubise Road Closed for Five More Days: The Piplemod section of the Nagdhunga–Naubise road will be closed for five more days starting today. The road will be closed from 10:30 AM to 3 PM daily. The closure, which started Jestha 10 (May 24), continues due to ongoing road construction. Work remains incomplete, so the road will remain closed for the same duration to complete the task, according to project chief Keshav Prasad Ojha.

Main Tunnel Construction Complete at Sisnekhola–Nagdhunga Tunnel Project: The main tunnel of the Sisnekhola–Nagdhunga Tunnel Project has been completed, and pre-operational technical testing (facilitate testing) has begun. The 2,688-meter-long main tunnel, completed on Baisakh 3, 2081 (April 15, 2024), is undergoing testing of continuously reinforced concrete pavement (CRCP).

Asian Life Insurance Declares 5.36% Dividend: Asian Life Insurance has declared a 5.36% dividend to shareholders from last year’s profits. A board meeting on Sunday decided to issue 5.10% bonus shares and 0.26% cash dividend for tax purposes.

Gyanishwor Panta Appointed CEO of Infinity Microfinance: Gyanishwor Panta has been appointed Chief Executive Officer (CEO) of Infinity Microfinance. The board of directors made the decision on Saturday. His term will run till Jestha 24, 2086 (June 6, 2029). Panta has over 12 years of experience in microfinance. He previously served as Deputy CEO and Company Secretary at the same institution.

Slight Drop in Gold Price, Silver Price Rises Slightly: On Monday, the price of gold slightly dropped while silver slightly increased in the Nepali market. According to the Federation of Nepal Gold and Silver Dealers’ Associations, the price of hallmark gold, which was NPR 190,700 per tola the previous day, declined to NPR 190,600 per tola on Monday. Similarly, the price of silver reached NPR 2,150 per tola on Monday, up from NPR 2,145 per tola on Sunday.