KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

Commission to Probe Assets of NRB Officials

The government led by Prime Minister Balendra Shah (Balen) has mandated the Property Investigation Commission, 2026, to audit the assets of current and former officials of Nepal Rastra Bank (NRB) and state-owned banks. Under the chairmanship of a former Supreme Court justice, the commission will investigate officials who held leadership positions from 1991 to April 13, 2026. This probe covers 10 former governors, 24 deputy governors, 60 board members, and approximately 150 executive directors. The investigation extends to the chairpersons and CEOs of Rastriya Banijya Bank, Nepal Bank, and Agricultural Development Bank. This initiative aims to address policy corruption and the rise in non-performing loans within the financial sector.

IMF Extends Nepal’s ECF Arrangement Until July 11

The Executive Board of the International Monetary Fund (IMF) has approved a request by the Nepali authorities to extend the Extended Credit Facility (ECF) arrangement by two months, until July 11, 2026. The extension is intended to allow sufficient time to complete the seventh and final review of the program. The 38-month ECF arrangement was originally approved on January 12, 2022, with access of SDR 282.42 million, equivalent to 180 percent of Nepal’s quota. Earlier, the arrangement was extended until January 11, 2026, along with a rephasing of disbursements without additional access. It was later further extended until May 11, 2026, again without additional access. The latest extension was approved by the IMF Executive Board on a lapse-of-time basis.

NEPSE Gains 6.94 Points as Trading Turnover Falls

The Nepal Stock Exchange (NEPSE) rose by 6.94 points or 0.25 percent on Thursday to close at 2,718.16, while the sensitive index increased by 0.20 percent to 464.08. A total of 6.68 million shares of 334 companies were traded through 45,065 transactions, generating a turnover of Rs 2.93 billion, down from Rs 3.19 billion on Wednesday. Share prices of 155 companies increased, 102 declined and 12 remained unchanged. Sectoral gains were led by commercial banks, development banks, hotels, life insurance, microfinance and trading, while finance, investment, manufacturing, mutual funds and non-life insurance sectors ended lower.

Government Relaxes MRP Rule to Ease Customs Congestion

The government has temporarily relaxed the mandatory Maximum Retail Price (MRP) labeling requirement at customs checkpoints, allowing importers to self-declare prices during clearance. Under the three-month transitional arrangement, imported goods can be released immediately and labeled later at warehouses before entering the market. The dispute over the labeling rule had disrupted customs clearance at major border points, including Birgunj and Biratnagar, causing cargo congestion and slowing trade flow. Following the revision, clearance operations resumed and customs revenue collection reached Rs 1.59 billion in a single day. Officials said the temporary measure is intended to maintain trade operations while enforcing consumer protection laws, with a long-term legal framework expected through the upcoming fiscal policy.

Birgunj Customs Resumes Clearance After Rs 750 Million Revenue Collection

The Birgunj Customs Office resumed its clearance operations yesterday following a week-long deadlock over the mandatory Maximum Retail Price (MRP) labeling. Importers agreed to a compromise where they must declare the MRP during clearance and commit to labeling goods at their warehouses before market distribution. The clearance halt, which lasted from April 28 to May 5, had caused a massive backlog of freight vehicles on the Raxaul side. Despite the disruption, the office collected approximately Rs 750 million in revenue on Wednesday. Business leaders have described the current arrangement as a temporary solution, seeking a more permanent policy regarding MRP implementation.

ICP in Biratnagar Resumes After MRP Compromise

The Integrated Check Post (ICP) in Biratnagar has resumed the movement of hundreds of freight containers following a week-long disruption over mandatory Maximum Retail Price (MRP) labeling. The Department of Customs introduced a “self-declaration and commitment” system, allowing importers to clear goods by pledging to apply MRP labels at their warehouses before retail sale. Previously, nearly 400 containers carrying electronics, clothing, and perishables were stranded at the border after the April 28 enforcement date. While the compromise has eased the immediate supply chain pressure and potential price hikes, authorities maintained that the policy remains in effect to protect consumers from arbitrary pricing in the market.

Traffic Violations Yield Rs 2.6 Million Revenue in 24 Hours

The Kathmandu Valley Traffic Police Office collected Rs 2.6 million in revenue from 2,105 traffic violators over the past 24 hours. Penalties were issued to 99 individuals for driving under the influence and 193 for unauthorized “ride-sharing” activities. Additionally, 139 drivers were fined for speeding, while 133 were penalized for violating traffic signals. Other recorded offenses included 132 lane discipline violations, 87 cases of sidewalk parking, and 79 instances each of illegal honking and driving on one-way streets. The remaining 1,164 cases involved various other breaches of traffic regulations as the authorities intensified road safety enforcement across the capital.

Increased Customs Enforcement Boosts Local Trade in Mahendranagar

Strict monitoring at the Gaddachauki border point by the Armed Police Force (APF) and Police has led to a significant increase in commercial activity in Mahendranagar. Authorities are now strictly enforcing the collection of customs duties on goods exceeding Rs 100 in value imported from India, discouraging local consumers from visiting the neighboring Banbasa market. While the Banbasa electrical and grocery sectors have reported a slump, domestic retailers are seeing higher footfall. Security officials emphasized that while agricultural fertilizers will be facilitated, commercial smuggling disguised as household goods will no longer be tolerated. This enforcement aims to increase national revenue and support domestic employment and production.

National Statistics Office Completes 32 Percent of Second Economic Census

The National Statistics Office has urged all formal and informal business establishments to participate in the ongoing Second National Economic Census, which runs from April 15 to June 21. As of May 5, approximately 32% of the census has been completed nationwide, covering 480,000 registered entities across sectors like agriculture, manufacturing, and financial services. To ensure data reliability, coordination committees have been established under chief secretaries at the provincial level and chief district officers at the district level. A workforce of 3,906 enumerators and 526 supervisors is currently deployed for on-site data collection.

Insurance Authority Fines Two Firms Over Regulatory Violations

The Nepal Insurance Authority has taken disciplinary action against Sagarmatha Lumbini Insurance and Lord Buddha Reinsurance Broking Private Limited for violating industry regulations. Sagarmatha Lumbini Insurance was fined Rs 200,000 for providing unauthorized discounts and rebates in property insurance, breaching the Property Insurance Directive, 2023, and the Insurance Act, 2022. Additionally, Lord Buddha Reinsurance Broking faced a fine of Rs 5,000 for failing to seek the authority’s approval before initiating a transfer of ownership. These penalties highlight the regulator’s commitment to maintaining transparency and strictly enforcing the Reinsurance Brokerage Directive, 2021, across the insurance sector.

Government Authorizes Rs 12.212 Billion Transfer for Delayed Bridges

The government has issued an order allowing the Bridge Division under the Department of Roads to reallocate funds for 303 under-construction bridges and culverts facing budget shortages. While the total contract value for these projects is Rs 35.563 billion, only Rs 21.032 billion has been paid as of February 6. The current liability stands at Rs 12.212 billion. Under the new ordinance, ministries can now reallocate unspent capital budgets internally without seeking prior Ministry of Finance approval for each transfer. This decision aims to expedite projects stalled since the fiscal year 2011/12, particularly in Madhesh Province, before the fiscal year ends on July 16, 2026.

Gandaki Province Increases Public Transport Fares by Up to 24%

The Ministry of Physical Infrastructure Development and Transport Management in Gandaki Province has implemented a new fare structure effective from yesterday. This adjustment, the first in over four years, sees fares increase between 5.5 percent and 24 percent based on 13 indicators including fuel prices and geography. Long-distance bus fares rose by 23.51 percent, while city bus fares in the Pokhara Valley increased from Rs 20 to Rs 24 for minimum distances. Taxi pulse rates have also been adjusted to Rs 11 per 200 meters. Interestingly, the government has maintained old rates for electric vehicles to encourage eco-friendly transport, while warning operators that overcharging will result in legal action.

Sudurpaschim Local Units Request Rs 3.629 Billion in Provincial Grants

For the upcoming fiscal year 2026/24, the 88 local units of Sudurpaschim Province have submitted proposals for 472 projects seeking Rs 3.629 billion in grants. The Provincial Policy and Planning Commission reported that Rs 1.25 billion has been requested for 237 special grant projects, while Rs 2.43 billion is sought for 235 complementary grant projects. Although the demand is high, the Commission noted that project approvals will be strictly tied to a reduced budget ceiling. These grants, mandated by the Intergovernmental Fiscal Management Act, 2017, aim to support specific regional needs and infrastructure gaps through coordinated provincial funding.

Budget Freeze Halts Rs 480 Million Development Projects in Jumla

Significant development projects under the Intensive Urban and Building Construction Project in Jumla have been stalled due to a budget freeze by the Ministry of Finance. A total of 16 major projects, valued at Rs 30 million each for a total of Rs 480 million, were approved for the current fiscal year across Jumla, Mugu, Humla, Dolpa, and Kalikot. However, the federal government has halted these initiatives, leaving only five school buildings in the construction phase. In Mugu alone, seven major projects including the Rara Integrated Tourism Infrastructure are currently in limbo. Local stakeholders have expressed concern that political shifts and delays in project reporting are causing vital development funds to lapse.

Technical Hurdles Stall 29 Infrastructure Projects in Kailali

The Infrastructure Development Office in Kailali has announced that 29 out of 800 planned infrastructure projects will not be implemented this fiscal year. Despite an allocation of Rs 178.9 million for these specific plans, issues such as overlapping titles, lack of multi-year source guarantees, and jurisdictional conflicts have halted progress. Notably, the asphalt paving of the Tikapur Airport runway was canceled as it falls under federal rather than provincial jurisdiction. Additionally, several bridge projects in Dhangadhi and Kailari remain stalled due to inadequate Detailed Project Reports (DPR) and funding gaps. These “fragmented” projects, often below the Rs 2.5 million threshold, have faced significant administrative challenges in redistribution and execution.

Salyan Local Units Allocated Rs 128 Million in Equalization Grants

The Ministry of Economic Affairs and Planning of Karnali Province has fixed a financial equalization grant ceiling of Rs 128.7 million for the 10 local units in Salyan for fiscal year 2026/27. Sharada Municipality received the highest allocation of Rs 16.2 million, followed closely by Bangad Kupinde and Bagchaur municipalities. Among rural municipalities, Kalimati and Kumakh were allocated Rs 13.3 million and Rs 13.1 million, respectively. The grants are distributed based on population, geography, and performance evaluations as per the Intergovernmental Fiscal Management Act. Local units are now preparing their budgets based on these provincial and federal ceilings to ensure continued service delivery.

Local Unit Pledges Rs 500,000 for Displaced Residents’ Housing

The Halesi Tuwachung Municipality in Khotang has decided to provide Rs 500,000 in financial assistance to residents displaced from encroached settlements in Kathmandu and other urban areas. During a municipal executive meeting yesterday, the local government formed a committee led by the deputy mayor to collect data on returning citizens. Concurrently, the District Administration Office has ordered all 10 local units in Khotang to submit records of encroached public lands within three days. This local initiative follows federal directives issued on April 29 to reclaim state-owned property and facilitate the dignified relocation of displaced families.

Second South Asian Trade Fair 2026 Opens in Kathmandu

The Second South Asian Trade Fair 2026 commenced on Thursday at the Bhrikutimandap exhibition grounds in Kathmandu. Organized by Introduction Trade Shows Nepal in collaboration with the Bangladesh Ministry of Industries, the event features participants from all eight SAARC nations. Running until May 11, the fair showcases handicrafts, local food items, garments, furniture, and electric vehicles. Organizers expect over 5,000 entrepreneurs and 100,000 visitors to attend. The exhibition aims to strengthen trade relations, promote exportable goods, and facilitate cooperation between buyers and sellers across the South Asian region, providing a platform for market potential studies and service promotion.

Committee Publishes Names of 82 Major Cooperative Defaulters

The Problematic Cooperative Management Committee has published the names of 82 major borrowers linked to 10 troubled cooperatives after repeated failure to repay loans. The list includes debtors associated with institutions such as Hamro Sagarmatha, Ghedung Multipurpose, Oriental, Tulsy, Gautam Shree, and Ideal Yamuna Multipurpose Cooperative. Investigations showed several individuals had taken multiple loans from different cooperatives simultaneously. The committee said recovering funds from large defaulters is a priority to begin refunding small depositors affected by the crisis. Borrowers have been instructed to contact the committee and clear outstanding liabilities immediately, with authorities warning that legal action will follow against those who fail to comply.

NADA Supports MRP Labeling with Industry Minister

A delegation from the NADA Automobile Association of Nepal, led by President Surendra Kumar Upreti, met with Industry, Commerce, and Supplies Minister Gauri Kumari Yadav to discuss the mandatory Maximum Retail Price (MRP) stickers on automobile products. NADA expressed its support for the policy, noting it would enhance transparency, increase government revenue, and curb unauthorized business practices. However, the association highlighted practical difficulties in labeling hundreds of small spare parts within a single package. Minister Yadav acknowledged these challenges and committed to finding a solution while praising the industry’s shift toward completely knocked down assembly models for vehicles, lubricants, and batteries within Nepal.

Anjan Shrestha Assumes Office as FNCCI President

Anjan Shrestha has formally taken charge as the president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). He assumed office during a ceremony held at the FNCCI central office on Thursday. Outgoing president Chandra Dhakal handed over the leadership responsibilities. Along with Shrestha, newly elected office bearers also took charge of their respective roles. After assuming office, President Shrestha said he would continue dialogue and cooperation with the government to create an environment that boosts confidence in the private sector.

Taksar Pikhuwa Khola Hydropower Opens Rs 211 Million Public IPO

Taksar Pikhuwa Khola Hydropower officially opened its Initial Public Offering (IPO) for the general public yesterday. The company is offering 2,115,455 units of shares at Rs 100 each, totaling Rs 211.5 million. This follows the prior allocation of shares to project-affected locals and migrant workers. Of the total approved issuance of 4.23 million units, specific portions have also been reserved for mutual funds (151,533 units) and employees (60,613 units). Managed by Prabhu Capital, the subscription period remains open until May 11, allowing investors to apply for a minimum of 10 units and a maximum of 50,000 units.

Gold and Silver Prices Rise Today

Gold and silver prices have increased in the market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has risen by Rs 1,800 per tola (11.66 grams) and reached Rs 298,600. On Wednesday, gold was traded at Rs 296,800 per tola. Similarly, silver prices have also increased. The price of silver rose by Rs 100 per tola, reaching Rs 5,155. On Wednesday, silver was traded at Rs 5,055 per tola.