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 Falls After Six-Day Winning Streak, Turnover Also Declines: After rising continuously for six straight trading days, the Nepal Stock Exchange (NEPSE) index declined on Monday. The benchmark NEPSE index dropped by 22.35 points compared to the previous day, closing at 2,684 points. Along with the index, the overall market turnover also shrank significantly. While the total transaction amount stood at Rs 9.50 billion on the previous trading day, it fell to Rs 8.37 billion today. Out of the total listed companies, only 39 saw their stock prices increase, while 209 companies recorded losses. The majority of sectoral indices ended the day in the red. The Finance sector experienced the sharpest fall, dropping by 3.76 percent.

SEBON Opens Door for Perpetual Non-Cumulative Preference Shares: The Securities Board of Nepal (SEBON) has cleared the way for banks and financial institutions to issue perpetual non-cumulative preference shares. Through the ninth amendment to its Securities Issue and Allotment Guidelines, SEBON has allowed such shares to be issued, which can only be traded among promoter shareholders. The face value of these shares has been fixed at Rs 100. With this amendment, banks and financial institutions that have received approval from Nepal Rastra Bank can now apply to SEBON for issuance. As per the guidelines, the shares must be issued via private placement to fewer than 50 institutional investors only.

Mutual Funds Increase Investment in Share Market, Reach NPR 4.837 billion by Mid-June: Mutual funds have significantly increased their investments in the share market. By the end of Jestha (mid-June), the total investment through both open-end and closed-end schemes reached NPR 4.837 billion. This represents a growth of NPR 246 million in just two months compared to the total investment of NPR 4.591 billion made by funds until the end of Chaitra (mid-April). Seventy-two percent of the total assets of mutual funds are invested in the share market. By the end of Jestha, the total size of mutual fund assets reached NPR 6.372 billion.

Govt Circulates Directive to Banks for Releasing Guarantees of Import-Export Companies: The government has issued a circular to commercial banks to release guarantees of companies involved in international trade (import-export). Previously, except during the renewal of the import-export code (EXIM Code), companies involved in imports had to keep a deposit guarantee of NPR 300,000. The EXIM Code is a type of license required for international trade from Nepal.

Deuba To Party Critics: “I’m Not Someone Who Quits Easily”: Nepali Congress President Sher Bahadur Deuba has responded to leaders demanding the date for the party’s 15th General Convention, saying he’s not one to step down under pressure. In Monday’s Central Working Committee meeting, Deuba said the party’s statute allows a one-year extension beyond its four-year term, and Nepal’s Constitution permits an additional six months. “I follow the Constitution. I’m not someone who quits just because I’m told to. I’m a difficult man,” Deuba said, drawing laughter from the room.

Doctors To Continue Protest On Tuesday: The Nepal Medical Association (NMA) has announced it will continue its protest on Tuesday by shutting down all non-emergency medical services across the country. In a press statement issued on Monday, NMA General Secretary Dr. Sanjeev Tiwari said that hospitals nationwide will suspend regular services except for emergency care as part of the ongoing agitation. The association had already enforced a similar shutdown on Monday.

NPC Vice Chair Adhikari and NRB Governor Poudel Discuss Policy Coordination: Vice Chairperson of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari, held discussions with Nepal Rastra Bank (NRB) Governor Dr. Biswo Poudel regarding better coordination between monetary and fiscal policies. The meeting took place at the NPC office in Singha Durbar. The dialogue was held on the eve of the 54th meeting of the NPC’s National Development Problem Resolution Committee and in the context of the upcoming monetary policy for the next fiscal year being prepared by the central bank. During the discussion, NPC Vice Chair Adhikari emphasized the need to reexamine the existing economic model and operational practices. He stressed that now is the right time to initiate a debate on the effectiveness of current systems and their alignment with national development goals.

Demat Account Renewal Required by July 16: The Depository Participants (DPs) have issued a public notice urging members to renew their Demat accounts by July 16. According to regulations, Demat accounts must be renewed every year by this deadline. If not renewed by July 16, the Demat account will be frozen, preventing shareholders from selling existing shares or purchasing new ones. The annual renewal fee for Demat accounts is NPR 100. Additionally, users of the “Mero Share” platform must pay a separate renewal fee of NPR 50. Account holders can renew both their Demat accounts and Mero Share access simultaneously to ensure uninterrupted trading activities.

Chinese Technical Team Completes Survey of Ring Road Second Section: The Chinese technical team has completed the survey of the second section of the Ring Road. The Department of Roads said the survey took two and a half months to complete. The team arrived in Nepal on 6th Baishakh (April 19) for this task. The survey covered 8.2 kilometers from Kalanki to Basundhara Culvert. According to Arjun Prasad Aryal, Chief of the Department’s Development Assistance Implementation Division, the design report will be ready within three months after the team returns to China. “The team will return to China within a week,” he said.

Gold and Silver Traders Halt Business Across the Country Over Tax Protests: Gold and silver traders have stopped the trade of jewelry nationwide after the government failed to address their demands. Since last Friday, the Federation of Nepal Gold and Silver Dealers’ Association has also suspended the daily pricing of gold and silver. The government’s budget for the upcoming fiscal year announced on May 29 introduced a 2% luxury tax on gold trade and a 13% VAT on diamonds and precious stones. Traders claim this will double or triple the burden on consumers and affect businesses, leading them to shut shops in protest since the last week of Jestha.

Minister Pandey Departs for UNESCO Meeting in France, To Lobby for Inclusion of Tilaurakot in Heritage Site List: Culture, Tourism and Civil Aviation Minister Badri prasad Pandey left for France on Monday to attend the UNESCO World Heritage Committee meeting. At the Paris meeting, Minister Pandey is scheduled to propose the inclusion of the historic site Tilaurakot in Kapilvastu in the World Heritage List. He was seen off at Tribhuvan International Airport by ministry secretary Hariprasad Mainali and other senior officials.

Ministry Drafts Law to Provide Collateral-Free Loans to Nepali Migrant Workers: The Ministry of Labor, Employment, and Social Security has drafted a law to provide collateral-free loans to Nepali workers going abroad for foreign employment. The draft titled “Procedure for Providing Collateral-Free Loans to Nepali Workers Going Abroad 2082” is in its final stage, according to the ministry. Joint Secretary Jiblal Bhusal has been assigned as the coordinator of the drafting committee.

Government Prepares to Extend Contract of Delayed Sun Koshi-Marin Diversion Project Contractor: The government is preparing to extend the contract of the construction joint venture of India’s Patel Engineering and Nepal’s Raman Construction, which has been delaying the Sun Koshi-Marin Diversion multipurpose dam construction. At a federal parliament infrastructure committee meeting, Energy Minister Deepak Khadka informed that the contract period will be extended, and he has asked the contractor for a work schedule indicating the additional time needed.

Poultry Hatchery Association Suspends Chick Production and Sales Until July 13: The Nepal Hatchery Industry Association has suspended broiler and color broiler (cockerel) chick production and distribution from today until July 13. The association imposed a complete ban on chick production and sales by member industries. The halt came after farmers did not receive cost-based prices for chicks. According to Senior Vice President Rajendra Lamichhane, production is stopped for a week due to failure to get fair prices for chicks and meat.

Terai Madhesh Province Records Significantly Less Paddy Plantation Compared to Last Year: The Terai Madhesh Province has seen much lower paddy plantation than last year due to a lack of rainfall. The Agriculture Department reported that as of Asar 20 last year, 25.5% of land was planted with paddy, but this year only 13.6% has been planted. Agriculture Director General Prakash Sanjel said, “There was less rain in Terai compared to last year,” adding, “Paddy plantation has only been possible in irrigated areas.”

Only 20.51% Paddy Plantation Done in Bagmati Province So Far: So far, only 20.51% of cultivable land in Bagmati Province has been planted with paddy. As Asar month is nearing its end, paddy planting remains low. According to Pramod Prasad Dahal, Information Officer at the Bagmati Province Agriculture Directorate, due to late rains this year, about 80% of cultivable land in the province remains fallow. Out of a total 534,871.60 hectares of cultivable land, only 120,610.25 hectares have been planted with paddy.

Koshi Province Government and Insurance Authority Discuss Insurance Expansion: An interaction program on insurance was held at the meeting hall of the Chief Minister and Council of Ministers Office in Biratnagar, Koshi Province, organized by the Nepal Insurance Authority. Chief Guest Chief Minister Hikmat Kumar Karki said the provincial government will form a high-level committee to study insurance expansion and will formulate a provincial insurance policy. He committed to prioritizing bringing citizens under insurance coverage, insuring low-income groups, and promoting home insurance in the coming fiscal year.

Technical Glitch in ASYCUDA System Disrupts Customs Operations in Birgunj: Technical problems in the ASYCUDA system, used for customs clearance and international trade management in Birgunj, have disrupted daily customs operations. ASYCUDA is an automated system introduced to fully automate customs clearance processes and covers multiple sectors related to customs data.

Annual Budgets and Policies of Jitpur Simara Sub-Metropolitan and Nijgadh Municipalities in Bara Remain Uncertain: Annual budgets, policies, and programs of Jitpur Simara Sub-Metropolitan and Nijgadh Municipalities remain uncertain. Due to disagreements among executive members over budget allocation, the 12th municipal assembly’s second meeting of Jitpur Simara was postponed indefinitely. The Nijgadh municipal assembly was boycotted by its members, causing uncertainty. Jitpur Simara’s estimated budget of NPR 201 million for the upcoming fiscal year lacks consensus on allocating NPR 30 million for capital expenditure, leading to suspension of the meeting without any session.

More Than 15 Months After Declaration, Pokhara Yet to Start Tourist Data Collection: More than 15 months after being declared the Tourism Capital, Pokhara has yet to begin collecting official tourist statistics. Due to inactivity of relevant bodies, the process has slowed down. Businessmen claim that about 40% of tourists visiting Kathmandu also come to Pokhara, but no official data has yet been published. The government of Gandaki Province and Pokhara Metropolitan jointly organized the declaration of Pokhara as the Tourism Capital on Chaitra 4, 2080 BS, by then Prime Minister Pushpa Kamal Dahal.

Cliff Honey Harvesting in Baglung’s Tarakhola Community Forest: Honey harvesting has been done on cliffs in the community forest of Tarakhola Rural Municipality in Baglung district. The honey was collected from the cliff areas of Julphe and Thulobhir community forests in Tarakhola-5. According to Narayan Gharti, secretary of the Julphe Community Forest User Group, 150 liters of honey were harvested this year, compared to 260 liters last year.

Older Five-Star Hotels Upgrade Amid Competition from New Entrants: With rising competition from newly established five-star hotels over the past decade, older hotels have begun upgrading their facilities. Hotels built with older structures have been renovating to attract tourists in a timely manner. Hotels with legacies of over five decades, such as Annapurna, Shangrila, Mall, Yak and Yeti, and Everest Hotel, have undertaken modernization works.

Shares of Abhiyan Microfinance to Become Tradable on Secondary Market from Shrawan 30: Lock-in period for shares of Abhiyan Microfinance will end on Shrawan 29 (August 14). From Shrawan 30 (August 15), shares owned by founding shareholders and employees will be allowed for trade on the secondary market. Abhiyan Microfinance has 1,525,000 shares owned by founding shareholders and 12,500 shares in the name of employees.