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 Slightly, Daily Turnover Declines: The Nepal Stock Exchange (NEPSE) index rose by 9.19 points on Monday, reaching 2,631 points by the end of the trading session. Despite the index showing a modest gain, the overall market turnover decreased compared to the previous day. While the total transaction amount stood at Rs 7.12 billion on the previous trading day, it shrank to Rs 6.38 billion today. Prices of 145 companies increased, whereas 103 saw a decline. Most sectoral indices recorded gains throughout the day.

Banks Sitting on Rs 842 billion in Liquidity Amid Weak Loan Demand: Due to lower-than-expected demand for loans, banks are now burdened with excess liquidity. As of Thursday, commercial banks and financial institutions had Rs 842 billion available for lending. According to Nepal Rastra Bank, the credit-to-deposit ratio stood at 78.05%, below the regulatory cap of 90%, indicating that banks still have 11.95% of their deposits available for disbursement.

Government Adds Rs 15.24 billion in Loans and Equity to Support Public Institutions: To facilitate the operation of public institutions, the government has continued to increase loans every year. According to the Ministry of Finance, a total of Rs 15.24 billion has been added in the current fiscal year in the form of loans and equity investments, including foreign share investments made through the Asian Development Bank (ADB) and the World Bank. Specifically, the government has invested Rs 348.9 million in foreign equity, Rs 2.89 billion in equity of government-owned institutions, and Rs 12.51 billion in loan investments this fiscal year.

DRI Files Cases Against 321 People Over Rs 10 billion in Tax Evasion and Forex Misuse: The Department of Revenue Investigation (DRI) has filed cases against 321 individuals in the high and district courts within the past 10 months on charges of revenue leakage and foreign currency misuse totaling more than Rs 10 billion. The accused face charges in various courts for their involvement in foreign exchange irregularities and tax evasion. The DRI has demanded recovery of the evaded amount and prison terms of up to five years based on the scale of the offense.

Government Moves to Sell Four Defunct State-Owned Enterprises: The government has initiated the process to sell four non-operational state-owned enterprises. The Ministry of Finance has begun the process of appointing consultants to evaluate the assets of these ailing industries and has invited expressions of interest for the assignment. In the first phase, the ministry aims to appoint consultants to conduct asset valuation of Janakpur Cigarette Factory, Butwal Spinning Mill, Nepal Metal Company, and Nepal Orient and Magnesite.

Nepal Insurance Authority Sanctions Over Two Dozen Companies: The Nepal Insurance Authority has taken action against more than 25 insurance companies for failing to comply with regulations, submitting incorrect data, and violating standards. In the first phase, company directors and CEOs have been formally warned. Under Section 34 of the Insurance Act 2079, the authority can take seven types of actions ranging from issuing warnings to cancelling the operating license of the violating companies or individuals.

TIA Aviation Fuel Depot at Risk, Relocation Stalled by Land Transfer Delay: As per ICAO standards, aviation fuel storage facilities in the international airports must be at least 90 meters away from the runway. The current depot at Tribhuvan International Airport (TIA) is located within 80 meters of the runway. Although a decision was made nearly a year ago to relocate the depot, the process has not moved forward. The Nepal Oil Corporation’s Aviation Fuel Depot in Sinamangal stated that the Nepal Civil Aviation Authority (CAAN) has yet to hand over the necessary land.

Nepal and India’s Business Chambers Sign Agreement to Boost Cross-Border Trade: In a bid to strengthen bilateral economic cooperation, the Nepal-India Chamber of Commerce and Industry (NICCI) and the Federation of Indian Chambers of Commerce and Industry (FICCI) have signed an agreement to promote trade, investment, and cross-border commerce. The agreement was signed in New Delhi by NICCI President Sunil KC and FICCI General Manager Jyoti Vij. Both organizations will exchange trade delegations, share non-confidential information, and jointly organize promotional programs.

Life Insurance Business Grows by 15.29% in the Current Fiscal Year: The life insurance sector has seen a 15.29% increase in premium collection. By June 15, life insurance companies had collected Rs 154.05 billion in premiums, compared to Rs 133.63 billion during the same period last fiscal year. According to data released Sunday by the Nepal Insurance Authority, 14 life insurance companies contributed to this figure.

Only 20.3% Paddy Transplantation Completed Nationwide: As of Asar 15 (June 29), only 20.3% of paddy transplantation had been completed across the country, according to the Ministry of Agriculture and Livestock Development. Sudurpashchim Province leads with 49.2% transplantation due to the early onset of monsoon in the second week of Jestha. Other provinces reported: Karnali 39.1%, Gandaki 28.2%, Lumbini 24.3%, Bagmati 20.5%, Koshi 14.3%, and Madhesh at the lowest with just 3.9%, due to delayed monsoon.

Karnali Province Still Lags Behind in Industrial Development: Karnali Province has very few industrial and economic establishments. According to the National Economic Census, 2018, only a dozen major economic units are in operation in the region. The province lacks large industries and continues to suffer from high unemployment. Hydropower projects remain mostly at the study phase due to an investment-unfriendly environment. Low industrial presence has also led to reduced internal revenue generation.

Gokarna Awasthi Resigns from Securities Board of Nepal: Gokarna Awasthi has resigned as a board member of the Securities Board of Nepal (SEBON). He represented the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on the board and also serves as its Director General. According to Board spokesperson Niranjay Ghimire, Awasthi cited time constraints as the reason for his resignation.

Karnali Province to Develop Hydropower with Local Government and Private Sector Investment: The Karnali Province government has announced a new policy to build hydropower projects under joint investment from local governments and the private sector starting fiscal year 2082/83 (2025/26). The upcoming provincial budget outlines feasibility studies for hydropower projects up to 20 MW within the province’s jurisdiction.

Construction of 140 MW Main Dam at Tanahun Hydropower Project in Full Swing: The main dam of the 140 MW Tanahun Hydropower Project in Rishing Rural Municipality-1, Jhapputar of Tanahu is under rapid construction. This project marks Nepal’s first major dam under the traditional reservoir-based concrete dam system. According to project chief Shyamji Bhandari, concrete blocks have already been raised up to 10 meters on average above the foundation of what will be a 140-meter-high dam.

IPO Opens for 100% Rights Offering of Terhathum Power Company: Applications have opened for the 100% rights offering of Terhathum Power Company. Shareholders on record as of Jestha 4 (May 18) can apply for the rights shares. The company is issuing a total of 4 million rights shares, with Nabil Investment Banking as the issue manager. Applications can be submitted through any ASBA-member banks and financial institutions. The company recorded a net profit of Rs 22 million by the end of the previous fiscal year.

Mango Production in Siraha Falls by Nearly 40%: Mango production has declined significantly this year in Siraha. According to the Agricultural Knowledge Centre, production is limited to 59,866.5 metric tons this year compared to 99,235 metric tons last year — a drop of nearly 40%. Out of 9,025 hectares planted, only 8,895 hectares were deemed productive this year.

Soil Testing Camps Promote Scientific Farming in Banke: Soil testing camps conducted in Nepalgunj Sub-Metropolitan City, Kohalpur Municipality, and Rapti Sonari Rural Municipality have encouraged scientific farming among local farmers. The tests help determine soil pH levels, nitrogen, phosphorus, potassium content, micronutrient presence, and organic matter ratios. Binod Adhikari, head of the Agriculture Knowledge Centre in Banke, said soil acidity and nutrient imbalance are causing increased plant diseases, weaker crops, and lower yields.

Global IME Bank Launches Paddy Farming Loan Scheme: On the occasion of National Paddy Day, Global IME Bank has launched a “Paddy Farming Loan” scheme. The bank announced that the scheme is aimed at supporting the government’s strategy of achieving rice self-sufficiency within two years as laid out in the FY 2025/26 budget. Farmers will be eligible to receive loans up to Rs 2 million for purchasing seeds, fertilizers, equipment, and other agricultural inputs.

Nabil Bank Gets Green Light to Issue Rs 3 billion Debenture: Nabil Bank has received approval from the Securities Board of Nepal (SEBON) to issue debentures titled “7% Nabil Debenture 2089”. The bank will issue 3 million units of debentures priced at Rs 1,000 per unit—1.8 million through private placement and 1.2 million through public offering. The debenture has an 8-year maturity and a 7% annual interest rate. Nepal SBI Merchant Banking will manage the issue.

Gold Prices Down Again: Gold prices have continued its downward trend. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices have gone down by Rs 300 on Monday. With this, the price of gold has been set at Rs 188, 100 per tola. The price of silver, however, has gone up by Rs 10 and has been set at Rs 2,150 per tola.