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 4.83 Points Despite Lower Turnover

After a 21-point gain yesterday, the NEPSE Index rose 4.83 points on Tuesday to 2,766. Early trading saw a peak of 2,775 points. Turnover fell to Rs 4.18 billion from Rs 5.75 billion, with 101 companies gaining, 149 losing, and one unchanged. Most sector indices rose modestly, led by the ‘Others’ group (+1.42%). Banking (+0.14%), Development Banks (+0.96%), Hotels & Tourism (+0.17%), and Hydropower (+0.07%) also grew, while Manufacturing (-0.68%) and Microfinance (-0.48%) fell.

NRB Invites Bids for Printing 430 Million Rs 1,000 Notes

Nepal Rastra Bank has called for tenders to print 430 million banknotes of Rs 1,000 denomination. Only six companies that qualified in the pre-qualification process published in February 2081 will be eligible to participate in the competition, the notice stated. The tender covers design, printing, supply, and distribution of the notes.

Credit to Private Sector Increased by 8.4% Last Fiscal Year

In FY 2024/25, loans disbursed to the private sector by banks and financial institutions increased by only 8.4%, which is 67.2% of the 12.5% target set by the monetary policy. Compared to the previous year, lending increased by only 2.6 percentage points. In FY 2080/81, private sector lending had increased by 5.8%.

Lock-in Period of Six Companies’ Shares Ending Soon

Within the next month, the lock-in period for shares of six companies will expire. The shares are currently held by mutual funds, local investors, and promoters. NEPSE has informed through a public notice that after the lock-in period ends, these shares will be traded in the market at the same value as regular shares. This will increase the number of shares in circulation, posing a risk of price decline.

NRB Warns Against Old Indian Notes

Nepal Rastra Bank has warned against using Indian banknotes of Rs 500 and Rs 1,000 denominations that were in circulation before India’s demonetization. Issuing a notice on Tuesday, the central bank clarified that holding, transacting, or transporting such notes is prohibited. On November 9, 2016, India had banned old Rs 500 and Rs 1,000 notes. Similarly, it has been clarified that Nepalis are not allowed to carry Indian notes while traveling to or from countries other than India.

Rising Inflation Pressure Ahead of Major Festivals

With Nepal’s major festivals Dashain, Tihar, and Chhath approaching, rising inflation has started putting pressure on the kitchens of ordinary citizens. Considering this difficult situation, the government, like every year, has intensified its preparations with the aim of providing relief to consumers. This year’s initiative is not limited to running traditional fair-price shops.

Government Preparing to Raise Rs 10 Billion via Development Bonds

The government is preparing to raise Rs 10 billion in internal loans by issuing development bonds. Development bonds are government bonds used to raise medium and long-term internal loans, ranging from 3 to 15 years. Currently, preparations are underway to issue “Development Bond 2028– D” for three years through bidding, according to the Public Debt Management Office.

Private Sector Participation in Power Trade Ensured

Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has said that private sector participation in electricity trade will now be ensured. Receiving a report submitted by the Electricity Trade Study and Recommendation Committee coordinated by former secretary Dinesh Kumar Ghimire, the minister emphasized the need to provide equal opportunities to both the government and private sector in domestic and cross-border electricity trade to utilize Nepal’s hydropower potential.

Nagdhunga-Sisnekhola Tunnel to Operate from 2026

The Nagdhunga–Sisnekhola tunnel road will come into operation from 2026. According to project chief Saujanya Nepal, only hill strengthening work near the tunnel entrance on the Sisnekhola side remains. The Department of Transport Management has already issued the operation guidelines. “Our preparations are to start operation from New Year,” said Nepal. “Before that, we will test the installed equipment and conduct trial runs of vehicles inside the tunnel.”

Milk Consumption Doubles During Teej Festival

On Monday, milk consumption doubled in the market due to the Dar day of Teej festival. From grocery shops to dairy industries, customers crowded to buy milk early in the morning. It is customary to prepare kheer and other dishes for daughters and sisters on Dar day, which boosted sales, according to dairy entrepreneurs. According to dairy industries and Dairy Development Corporation (DDC), 2.6 million liters of milk worth Rs 1.893 billion were consumed nationwide. Normally, daily consumption stands at 1.1 to 1.2 million liters.

Rs 11.75 Billion Set Aside for Bank Staff Bonuses

In the last fiscal year, banks and financial institutions allocated Rs 11.756 billion for employee bonuses from profits. By law, 10% of profits must be allocated for bonuses. In FY 2023/24, Rs 9.197 billion was set aside for bonuses. The amount significantly increased in FY 2024/25 as banks’ profits improved.

Nepal Airlines’ Debt Rises to Rs 42 Billion

Due to failure to increase revenue, Nepal Airlines Corporation’s debt continues to rise. The Rs 24 billion loan taken in May 2017 to purchase two wide-body aircraft has grown to Rs 42 billion. Additionally, the Rs 10 billion loan taken from Employees Provident Fund in June 2013 remains unpaid, with interest swelling the outstanding amount.

No Customs Declaration Required for Carrying $5,000

Nepal Rastra Bank has clarified that Nepali or foreign citizens entering Nepal with up to $5,000 in foreign currency need not declare it at customs. Similarly, Indian currency equivalent to $5,000 can also be brought in cash without declaration. This clarification comes as Indian nationals had been facing problems bringing Indian currency in cash for payments in hotels and weddings in border areas.

Transport Federation Calls to Stop Embossed Number Plates

The National Federation of Public Transport Nepal has urged not to install embossed number plates on vehicles. In a statement, General Secretary Bharat Nepal said the government was trying to impose unnecessary financial burdens on citizens and transport entrepreneurs by introducing foreign technology without necessary infrastructure. The federation warned that it cannot accept the system without revising impractical provisions raised during discussions with stakeholders.

Unused Trademark to be Canceled After One Year

The government has decided that registered trademarks not used within one year will be canceled. The Department of Industry under the Ministry of Industry, Commerce, and Supplies implemented the rule requiring proof of use within one year. Information officer Pashupati Babu Puri said the provision was introduced to curb the growing trend of registering trademarks without running businesses.

Paddy Plantation Completed; Less Area Than Last Year

This year’s paddy plantation has been completed. Compared to last year, 70,173 fewer hectares of land were planted. Last year, plantation was done in 1,376,466 hectares, while this year it was done in 1,306,293 hectares, according to the Center for Crop Development and Agro-Biodiversity Conservation.

Beneficiaries Face Trouble in Diktel Municipality Over Bank Change

Beneficiaries receiving social security allowances in Diktel Rupakot Majhuwagadhi Municipality have faced problems after a change in the distributing bank. Sanima Development Bank, which previously handled the distribution in 10 wards, has stopped distribution in five wards this fiscal year. Though agreements were reached for Nabil Bank (Ward 8) and NIC Asia Bank (Ward 11) to take over, formal contracts have not been signed, the municipality said.

Committee Formed to Study Commercial Use of Natural Gas in Dailekh

The government has formed a four-member technical study committee under the coordination of Nepal Oil Corporation director Binit Mani Upadhyaya to study the feasibility of commercial production of natural gas discovered in Dailekh. The Ministry of Industry, Commerce, and Supplies formed the committee for feasibility study and preparations.

Lumbini Province Cabinet Makes 12 Decisions

The Lumbini Province cabinet meeting held on Monday under the chairmanship of Chief Minister Chet Narayan Acharya made 12 decisions on administrative, legal, infrastructure, and social matters. Among them, the meeting decided to recommend to the federal government to release private lands held in Rapti Rural Municipality, Gaidahawa Rural Municipality, and Shitganga Municipality of Arghakhanchi, based on local demands and recommendations of the Infrastructure Development Authority.

Gold Price Increases by Rs 1,500 per Tola

On Tuesday, the price of gold increased by Rs 1,500 per tola. The Federation of Nepal Gold and Silver Dealers’ Association fixed the price at Rs 198,700 per tola, compared to Rs 197,200 the previous day. Meanwhile, silver has also been setting new records since the previous day, with its price increasing by Rs 5 per tola to Rs 2,360.