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 Declines After Two Consecutive Days of Gains: The stock market, which had been rising steadily for the past two days, declined on Wednesday. Compared to the previous day, the NEPSE index dropped by 13.69 points. Following this decline, the NEPSE settled at 2664 points. The trading volume slightly decreased. While the previous day’s turnover was NPR 1.016 billion, today it fell to NPR 990 million. Prices of 77 companies increased, 170 decreased, and one remained unchanged. All sector indices except hydropower fell today. The hydropower sector rose by 1.13 percent. Finance, which had surged the most by 5 percent the previous day, dropped by 1.31 percent today.

NRB to Withdraw Rs 40 billion from Banking System in a Single Day: Nepal Rastra Bank (NRB) is set to withdraw Rs 40 billion from the banking system on Wednesday. In recent times, with excess liquidity in the market, NRB has been continuously absorbing deposits from the banking system. The central bank has called for a 20-day auction, in which banks and financial institutions can participate. The minimum bid amount per institution is Rs 100 million, and the bid amount must be in multiples of Rs 50 million, up to the total amount called for in the auction. According to NRB, both the principal and interest payments are due on Ashad 18 (July 2), and the interest rate will also be determined via the auction process.

Uncertainty Grows Over Budhigandaki Hydropower Project: The Budhigandaki Hydropower Project, listed as a national pride project, faces increased uncertainty. The government has shifted from its earlier decision to build the 1,200 MW reservoir-type project with internal funding and now plans to implement it under a Public-Private Partnership (PPP) model. As per the fiscal year 2082/83 (2025/26) budget, the government has announced that the project will now be constructed under PPP. Budget clause 224 states, “Budhigandaki Project will be constructed under a public-private partnership. The government’s investment in the project will be converted into shares.”

SEBON Publishes Report on New Stock Exchange Feasibility: The Securities Board of Nepal (SEBON) has released a report from the committee formed to study the need and justification for a new stock exchange. The report was published following a recent decision by SEBON’s board of directors. Led by NRB Director Chintamani Shiwakoti, the report states that the establishment of a competitive new stock exchange in Nepal could boost all market indicators by 30% to 50%. However, the report also recommends restructuring the existing Nepal Stock Exchange before licensing a new one.

Over 14,500 Electric Vehicles Imported via Rasuwagadhi in 10 Years: In the past decade, more than 14,500 electric vehicles produced in China have been imported through Rasuwagadhi. With rising EV imports, many of these vehicles are currently parked in Timure, Ghattekhola, and Rasuwagadhi due to pending customs clearance. According to Rabindra Pyakurel, Information Officer at Rasuwa Customs Office, 2,570 vehicles have already cleared customs and proceeded toward Kathmandu.

Govt Allocates Nearly Rs 300 billion for Salaries and Pensions in Next Fiscal Year: The government has allocated nearly Rs 300 billion for civil servant salaries and pensions in the upcoming fiscal year. Out of the total budget of Rs 1.964 trillion, nearly Rs 300 billion has been earmarked just for federal employees. The government estimates current expenditure for the new fiscal year at Rs 1.180 trillion, which is Rs 171 billion more than this year’s Rs 1.09 trillion.

NEA Calls for PPAs Amid Budget Blow to ROR Projects: Nepal Electricity Authority (NEA), on Baisakh 30 (May 13), issued a public notice selecting 54 hydropower projects and asked the concerned companies to submit necessary documents within a month for signing Power Purchase Agreements (PPAs). Two days ago, NEA also sent official correspondence to all selected companies. This move could pave the way for an additional 4,865 megawatts of electricity projects to commence, targeting projects above 10 MW already connected to the grid before Chaitra 12 (March 25). However, a setback emerged in the budget speech on Jestha 15 (May 29), stating that PPA payments for run-of-river (ROR) projects will be based not on production (“take and pay”) but on NEA’s actual electricity consumption.

Inflation Hits 51-Month Low at 2.77 Percent: Nepal Rastra Bank’s latest monthly report shows that the annual point-to-point consumer inflation for the Nepali month of Baisakh stood at 2.77 percent. This is a significant drop compared to 4.40 percent during the same month last year. The inflation figure for Baisakh is the lowest in 51 months, with the previous low being 2.70 percent in Magh 2077. Inflation had gradually climbed to an average of 8.64 percent by Bhadra 2079 before falling again, now reaching its current low of 2.77 percent.

Provinces Spend Rs 117 billion in 10 Months: In the first ten months of the current fiscal year, provincial governments in Nepal have spent Rs 117 billion. According to Nepal Rastra Bank, they mobilized a total of Rs 161.77 billion in resources during this period. Based on recommendations by the National Natural Resources and Fiscal Commission, the federal government allocated Rs 60 billion in fiscal equalization grants, Rs 25.84 billion in conditional grants, and Rs 6.2 billion in supplementary grants for infrastructure projects to the provinces.

Gwarko Flyover Being Blacktopped, May Be Delayed Due to Rain: The Gwarko flyover is currently being blacktopped. The work began in the second week of Jestha after completing necessary structural work. Although the goal was to complete the flyover by the end of Jestha, the Department of Roads’ Quality Research and Development Center spokesperson, Senior Divisional Engineer Pradeep Bhandari, said rain interruptions may cause delays.

Nepal, Saudi Arabia Agree on Skilled Labor Deal: Nepal’s Minister for Labor, Employment, and Social Security, Sharatsingh Bhandari, reached a key agreement with Saudi Arabia’s Deputy Minister for International Affairs, Tariq Al Hamad, regarding the employment of Nepali workers. The agreement was made during a bilateral meeting held on the sidelines of an international event in Geneva, Switzerland. Minister Bhandari stated that while the agreement on domestic workers remains pending, Saudi Arabia is ready to immediately sign two agreements related to the certification of general and skilled workers.

Bagmati Province Finalizing Budget for Fiscal Year 2025/26: The Bagmati Provincial Government is in the final stages of preparing its budget and plan for the upcoming fiscal year 2082/83 (2025/26). With the aim of unveiling the budget on Asar 1 (June 15), the provincial ministries have closed their gates, even halting internal meetings to maintain secrecy. Provincial Minister for Economic Affairs and Planning, Kundan Raj Kafle, said the upcoming budget will focus on production. The government had previously emphasized agriculture and tourism promotion, inclusive economic development, infrastructure construction, and environmental protection in its policies and programs.

Karnali’s Capital Budget Implementation Still Lagging: Karnali Province shows little improvement in implementing its capital budget in the current fiscal year 2081/82 (2024/25). Despite having a strategic plan in place, the government has failed to make significant progress as the fiscal year nears its end. However, the government claims that expenditure will rise due to its commitment to executing multi-year and sequential projects with urgency. Chief Minister Yamlal Kandel has been touring various districts to inspect infrastructure progress, prioritizing capital expenditure through the implementation of such development plans.

Kulekhani Reservoir Sees Declining Water Level: Water levels in Kulekhani, Nepal’s only reservoir-based hydropower project, have been steadily decreasing. As of Monday evening, the water level in Indrasarovar stood at 1,486.39 meters above sea level. Project chief Taradatta Bhatta said that due to increasing demand and lack of rainfall, Kulekhani I, II, and III have been operating at full capacity 24 hours a day, causing the reservoir level to drop. He added that the water level can be lowered further to a minimum of 1,484 meters if necessary.

Government to Build Mirchaiya–Katari–Ghurmi Road: From the next fiscal year, the government will begin construction of the Mirchaiya–Katari–Ghurmi road to ease transportation in six districts. Once built, the 72.02-kilometer stretch under the Siddhicharan Highway (within the feeder road category) will significantly boost connectivity and economic activity in the district headquarters of Solukhumbu (Salleri), Sankhuwasabha, Okhaldhunga, Khotang, Udayapur (Katari), and Siraha (Mirchaiya). Currently a single-lane road, it will be upgraded to a double-lane route, according to the Department of Roads.

Scorching Heat Triggers Rush to Trishuli River for Rafting and Cliff Jumping: The sweltering heat has intensified across Nepal. The monsoon, which briefly appeared in the eastern region a few days ago, has stalled, leading to rising temperatures. As a result, people from various regions are heading to the Trishuli River to escape the heat. Located just 2-3 hours by vehicle from Kathmandu and Chitwan, the number of people going rafting in the Trishuli has surged recently. Besides rafting, many are also enjoying cliff jumping into the cold river water.

2,200 VAT Payers Suspended by Nepalgunj Tax Office: The Inland Revenue Office in Nepalgunj has suspended 2,200 VAT-registered taxpayers. Chief Purna Prasad Neupane stated that those suspended had failed to submit their VAT returns. “Their transactions have been frozen,” he said. The Inland Revenue Department has been suspending VAT payers who haven’t submitted returns for the past six months.

Nepal SBI Bank Signs Agreement with NCHL for NepalPay Membership: Nepal SBI Bank has signed an agreement with Nepal Clearing House Limited (NCHL) for principal membership of the NPS–NCS and Domestic Card Scheme (Nepal Pay Card). The agreement was signed by Deputy CEO and Chief Operating Officer of the bank, Bikash Anand, and NCHL CEO Nilesh Man Singh Pradhan.

Stall Allocation Completed for Nepal Mobility Expo 2025: The Nepal Automobile Importers and Manufacturers Association (NAIMA) has finalized stall allocations for the upcoming Nepal Mobility Expo 2025. Scheduled for Shrawan 21–25 (August 6 to 10) at Bhrikutimandap, Kathmandu, the expo will feature 50 brands of four-wheelers, two-wheelers, and commercial vehicles. Out of 48 stalls, 21 have been allotted to four-wheelers, 18 to two-wheelers, and 9 to commercial vehicle brands. All stalls have been booked, said NAIMA President Ritu Singh Vaidya.

Gold Price Rises in Nepali Market on Wednesday: Gold prices rose in the Nepali market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold increased by Rs 1,300 per tola compared to Tuesday. Accordingly, the price of hallmark gold reached Rs 191,300 per tola on Wednesday, up from Tuesday’s Rs 190,000. Meanwhile, the price of silver remained stable at Rs 1,165 per tola, the same as the previous day.