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:

NRB Maintains Flexible Stand in 3rd Quarter Monetary Review

The Nepal Rastra Bank (NRB) officially released its third-quarter review of the monetary policy for the fiscal year 2025/26. To enhance the efficiency of the interest rate corridor, the central bank announced plans to review existing permanent deposit facilities for banks and financial institutions. Given that foreign exchange reserves and inflation remain well within targeted parameters, the NRB decided to sustain the flexible monetary policy stance adopted since the beginning of the fiscal year to support low economic growth. Consequently, key financial indicators, including the bank rate, compulsory cash reserve ratio, and statutory liquidity ratio, will remain unchanged to preserve financial market stability and manage banking sector liquidity effectively.

FDI Commitments Over Ten Months Hit Rs 45.321 Billion

Data from the Department of Industries reveals that Nepal received Rs 45.321 billion in Foreign Direct Investment (FDI) commitments across 728 approved projects during the first ten months of the current fiscal year. The agricultural sector secured the largest share, recording Rs 22.088 billion across 16 projects, followed closely by the tourism sector with Rs 12.54 billion for 189 ventures. Despite high pledge volumes, actual net FDI inflows remained considerably lower, standing at Rs 14.55 billion for the first nine months, though this still reflects a Rs 5 billion increase compared to the corresponding period last fiscal year.

Labor Ministry Moves to Automate Re-Labor Approvals

The Ministry of Labor, Employment, and Social Security is preparing to completely automate the foreign employment re-labor approval process. Policy amendment proposals have been finalized to establish legal and technical frameworks within days. Additionally, the ministry has launched labor audits across 100 business firms to monitor occupational health and safety standards. To systematically manage foreign employment, bilateral labor agreement processes have been initiated with seven new countries, and five labor-related laws, including the Child Labor Prohibition Act, are undergoing revision. Plans are also underway to transform 753 local employment service centers into skill and entrepreneurship centers, enroll 10,000 workers into the Social Security Fund, and resolve 5,000 grievances via the ‘Shramadhan Call Centre.’

Raw Plastic Imports Through Birgunj Customs Decline by Rs 4.59 Crore

Rising military tensions in West Asia and disruptions in international supply chains have severely restricted raw plastic granule imports through the Birgunj border point. Over the past three months, local plastic manufacturing plants have faced acute shortages of petroleum-byproduct raw materials due to volatile global oil prices. According to recent six-month customs data, polyethylene imports plummeted from 8,068 metric tons last year to 7,162 metric tons, resulting in a revenue loss of Rs 363 million. Similarly, olefin copolymer imports fell from 5,326 metric tons to 5,004 metric tons, causing an additional loss of Rs 90.6 million. Local industrialists also cited artificial market shortages and inflated pricing by Indian merchants as major operational challenges.

NMA Fails to Deposit Rs 96.3 Million in Mountaineering Royalties

The 63rd Annual Report of the Auditor General has directed the Nepal Mountaineering Association (NMA) to immediately clear its overdue mountaineering royalties. Under the Intergovernmental Finance Management Act, 2074, royalties collected from the country’s peaks must be deposited into the Federal Divisible Fund for distribution among federal, provincial, and local governments. Although the NMA collected Rs 122 million in royalties under government authorization, records show it has delayed payments and failed to report data on time. Currently, the NMA owes Rs 96.3 million to the Ministry of Culture, Tourism, and Civil Aviation. Separately, the report highlighted that Rs 162.1 million in rural telecommunication fees remain uncollected from 13 service providers.

Cooperative Relief Scheme to Launch on Monday

The Problematic Cooperative Management Committee has announced that the formal process to return funds to aggrieved cooperative savers will officially begin on Monday (May 18). The initial phase will prioritize small savers holding Rs 10,000 or less, focusing heavily on highly affected entities like Shivashikhar and Kantipur Cooperatives. To manage the high volume of savers, the committee has introduced a strict dual shift schedule: financial disbursements will take place from 9:00 AM to 3:00 PM, while statements and grievances will be handled after 3:00 PM. Simultaneously, the committee has launched stringent debt recovery protocols, warning non-compliant borrowers and board members of potential asset freezes and three-generation background investigations.

Damauli Monolithic Bridge Progress Reaches 84%

The under-construction four-lane bridge over the Madi River in Damauli has achieved 84 percent physical progress and 81.2 percent financial progress. Located along the Muglin-Pokhara section of the Prithvi Highway, the 315-meter structure features six spans, including four completed pre-stressed box girder spans. Work is currently underway on the two central concrete arch bridge sections. Constructed at a total cost of Rs 1.21 billion, including VAT, the 23-meter-wide bridge is notable as the country’s first single monolithic structure. Following the expiration of the original contract, the deadline has been extended to July 3, with construction companies intensifying activities to ensure timely completion.

Valley Police Collects More Than Rs 2 Million from Traffic Penalties

In a major traffic enforcement drive, the Kathmandu Valley Traffic Police Office penalized 2,200 drivers for violating traffic regulations within a 24-hour period. This intensive crackdown successfully generated Rs 2 million in revenue for the state treasury. According to official data, the penalized offenses included 168 cases of driving under the influence, 155 instances of unauthorized ride-sharing, 137 traffic light violations, and 152 drivers booked for speeding. Furthermore, officers penalized 102 motorists for lane discipline violations, 178 for honking in prohibited zones, 123 for sidewalk parking, and 113 for driving down one-way streets, while 1,072 individuals faced action for various other driving infractions.

Combined Market Monitoring Team Fines 3 Businesses in Birgunj

Under the ongoing Price Transparency Week, a joint district monitoring team conducted surprise inspections on commercial kitchens and hotels in Birgunj. On Friday, the team penalized three business operators for failing to comply with the Consumer Protection Act, 2018, and its subsequent regulations. Tarai Canteen was slapped with a fine of Rs 50,000 for serious operational violations under Section 15 of the Act. Additionally, Jyoti Magar Hotel was fined Rs 20,000 for regulatory non-compliance, while Choudhary Hotel received a fine of Rs 5,000. The monitoring committee reaffirmed that strict inspections will continue across the municipality to secure consumer rights and eliminate unfair business practices.

Countrywide Price Transparency Campaign Penalizes Defiant Businesses

Under the government’s newly launched “Price Transparency Week,” the Department of Commerce, Supplies and Consumer Protection conducted massive market monitoring raids across major trade hubs on Thursday. In the Kathmandu Valley, authorities inspected 35 firms and slammed Trust Footwear Private Limited with a fine of Rs 205,000 for violating consumer laws. Two other footwear shops were fined Rs 15,000 and Rs 10,000, respectively. Meanwhile, the Birgunj branch penalized three hotels and canteens a total of Rs 75,000 for pricing discrepancies. In Biratnagar, a joint administrative team confiscated and destroyed expired food items from multiple businesses while ordering an immediate suspension of operations for two prominent food outlets.