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 Absorbs Rs 30 Billion Liquid Capital via Open Market Auction

The Nepal Rastra Bank (NRB) successfully executed an open market auction on Wednesday to absorb Rs 30 billion in excess liquidity from the national financial system. The central bank requested official bidding proposals from licensed commercial banks and financial institutions, completing the automated online bidding process at 3:00 PM. The liquidity absorption instrument is structured for an exact maturity period of 91 days, with full principal and accrued interest settlements scheduled for August 19. This financial intervention adds to the central bank’s active open market operations, where approximately Rs 600 billion in deposit collection instruments remain unmatured.

NEPSE Jumps 30 Points, Turnover Rises to Rs 3.82 Billion

KATHMANDU: The Nepal Stock Exchange (NEPSE) surged by 30.08 points on Wednesday, reversing losses from the previous two trading sessions as both market index and turnover posted gains. The benchmark NEPSE index rose 1.10 percent to close at 2,754.48 points. The sensitive index also climbed 3.68 points to 471.06, while the float and sensitive float indices gained 1.03 percent and 0.82 percent respectively. A total of 10.66 million shares of 346 companies were traded through 52,336 transactions, generating turnover of Rs 3.82 billion. The daily turnover stood at Rs 3.08 billion on Tuesday and Rs 2.45 billion on Monday. Share prices of 248 companies advanced, while 21 declined and one remained unchanged. All 13 trading groups closed in the green, led by hotel and tourism and hydropower, both gaining 1.89 percent.

Nepal’s Cumulative Public Debt Obligation Escalates to Rs 2.975 Trillion

The Public Debt Management Office confirmed that Nepal’s aggregate public debt liabilities reached Rs 2.975 trillion by May 14 this year. Financial data indicates a Rs 532.91 billion expansion during the past 10 months, countered by Rs 231.92 billion in principal repayments, yielding a net debt expansion of Rs 300.99 billion. The total includes Rs 1.381 trillion in internal debt and Rs 1.593 trillion in external liabilities. Foreign exchange pressure from a stronger US dollar increased external obligations by Rs 67.75 billion, causing debt levels to nearly double over seven years from Rs 1.433 trillion in 2019/20.

Government Invites Domestic Ethanol Supply to Cut Fuel Imports

The Ministry of Industry, Commerce and Supplies, acting on behalf of the Nepal Oil Corporation, issued an open procurement call for domestic biofuel producers to supply locally manufactured ethanol for commercial petrol blending. The initiative follows the ‘Ethanol Blending in Petrol Order, 2026,’ gazetted on March 12, which mandates a maximum blending ratio of 10 percent ethanol per liter of petrol to displace fuel imports. Eligible raw materials include molasses from sugar mills, Napier grass, straw, corn stalks, wheat straw, cassava, and non-food-grade spoiled grains. The policy prohibits the use of edible food crops, and manufacturers must establish in-house laboratories to verify strict quality criteria before selling exclusively to the state corporation.

Indian Tea Board Corrigendum Resolves 19-Day Border Export Stoppage

The Indian Tea Board issued a revised directive titled “Corrigendum-2” on Tuesday, modifying its strict quality testing rules and resuming Nepalese tea exports after a 19-day border stoppage. The trade dispute began on May 1 when India enforced mandatory laboratory testing for every incoming truck shipment, replacing previous random testing protocols and stranding tons of processed tea inside domestic factories. Under the new guidelines, India will drop mandatory checks for tea meant for its internal markets, reverting to random custom risk-management testing. For third-country transits, mandatory testing remains, but laboratories must upload quality compliance reports to online portals within five days, avoiding degradation of CTC and Orthodox tea shipments valued at Rs 5 billion annually.

Government Enacts 15-Point Action Plan to Exit FATF Financial Grey List

The Ministry of Finance, coordinating with the Office of the Prime Minister and Council of Ministers, held an emergency briefing with the Asia Pacific Group on Money Laundering to fast-track its exit from the international compliance monitoring list. The Financial Action Task Force placed Nepal on its anti-money laundering “Grey List” on February 21, 2025, granting a two-year window to rectify structural and legislative deficiencies. The state committed to executing a 15-point International Cooperation Review Group action plan to overhaul internal regulatory accountability. Executive panels from the Nepal Rastra Bank are leading the implementation of transparent asset tracking and financial tracking mechanisms to reform institutional governance standards across national banking platforms.

PM Balen Post Triggers 300% Surge in DDC

The Dairy Development Corporation (DDC) recorded a 200 percent to 300 percent sales increase across retail outlets following a weekend social media photo endorsement by the Prime Minister Balendra Shah (Balen). The sudden consumption demand follows extended financial distress for the state-owned enterprise, which carries Rs 2 billion in cumulative losses alongside a Rs 400 million deficit from the previous fiscal year. The corporation currently holds outstanding arrears of Rs 500 million owed to local farmers spanning four months of milk collections. To counter the losses, management terminated staff milk and yogurt allowances on May 15 to save Rs 30 million annually, while advancing plans to add 50 new sales points and boost daily processing targets to 100,000 liters.

Nepal Records Rs 71.428 Billion Outflow Over Three Years Amid Low Foreign Inflow

The Sixty-second Annual Report of the Auditor General revealed a significant disparity between approved foreign direct investment pledges and actual capital inflows entering Nepal. In the fiscal year 2027/28 cycle, the Department of Industry recorded Rs 65 billion in investment commitments, yet only Rs 12.01 billion materialized. Similarly, the fiscal year 2026/27 period secured Rs 81.691 billion in approvals but netted just Rs 10.292 billion, representing a 12.60 percent entry rate. Over a three-year period, total incoming investment reached Rs 30.342 billion, whereas outbound capital remittances totaled Rs 71.428 billion, outpacing incoming funds by 135 percent across agriculture, IT, and tourism.

Government Orders 40K Tons of Fertilizer to Mitigate Supply Disruption

The Ministry of Agriculture, Forestry and Environment initiated government-to-government procurement protocols to import 40,000 tons of chemical fertilizer from India to secure input supplies for the upcoming rice planting season. The initial import shipment includes 20,000 tons of urea and 20,000 tons of DAP fertilizer, operating as the first installment of an 80,000-ton authorization granted to the Agriculture Inputs Company. The ministry holds 150,000 tons of emergency stock, sufficient to meet baseline demand through July and August this year. National projections require 250,000 tons for the rice cycle, out of a total annual domestic requirement of 800,000 tons. Record sales reached 458,000 metric tons this year, with Madhesh Province consuming 29 percent and Karnali Province using under 2 percent amid transit issues in the Strait of Hormuz.

Ministry Proposes Rs 10.139 Billion Budget Program Exceeding Assigned Ceiling

The Ministry of Industry, Commerce and Supplies submitted a comprehensive budget program totaling Rs 10.139 billion, exceeding its designated fiscal ceiling of Rs 8.319 billion. The proposed spending breakdown allocates Rs 5.78 billion for recurrent costs, Rs 3.89 billion for capital infrastructure, and Rs 469 million for financial management investments in public enterprises. Major itemized fund requests include Rs 3.038 billion for industrial investment promotion, Rs 2.23 billion for strategic trade routes, Rs 1.65 billion for the Industrial Business Development Institute, and Rs 1.32 billion for industrial infrastructure development.

66 Telecom Corporations Fail to Remit Rs 1.29 Billion in Statutory Arrears

The Auditor General’s Office report revealed revenue evasion within the internet sector, with 66 firms failing to settle Rs 1.29 billion. The arrears include Rs 353.6 million in royalties, Rs 734.4 million in frequency dues, Rs 43 million in renewal fees, and Rs 16.21 million in Rural Telecommunication Development Fund duties. Specifically, 45 providers skipped the 4 percent royalty on an aggregate income of Rs 8.842 billion, while 13 corporations evaded the 2 percent rural fund tax on an income of Rs 8.109 billion for the fiscal year 2023/24. Consequently, the Nepal Telecommunications Authority gave a 15-day ultimatum to 17 operators, including Beni Communication and Broadband Solutions, threatening license cancellation under Section 28 of the Telecommunications Act, 1997.

Sudurpaschim Faces Rs 24.117 Billion Budget Surplus

The Sudurpaschim Province Government holds an unspent budget surplus of Rs 24.117 billion with only two months remaining in the 2025/26 fiscal calendar. Out of an aggregate annual budget allocation of Rs 33.455 billion, provincial agencies spent just Rs 9.337 billion, representing 27.91 percent of total funds. The Province Accounts Controller Office reported capital expenditure at Rs 4.177 billion, or 21.06 percent of its Rs 19.838 billion portfolio. Recurrent spending reached Rs 5.16 billion, marking 37.92 percent of its Rs 13.606 billion fund. Structural delays caused by political movements and general elections slowed operational implementation, though final fiscal targets project an ultimate utilization rate of 65 percent to 70 percent.

Gandaki Calls Budget Session to Present Upcoming Fiscal Plan

The Gandaki Province Assembly will officially commence its upcoming budget session on May 25. The session was formally summoned by the province head on Wednesday following an executive recommendation submitted by the Gandaki Province Government cabinet. According to the official notice published by the Province Assembly Secretariat, the legislative session will begin at 2:00 PM at the Province Assembly Hall in Pokhara. This annual summer session will serve as the legislative platform for the provincial administration to present its official policy, structural development programs, and fiscal budget statement for the upcoming fiscal year 2026/27.

Pokhara International Airport Completes 1st Direct Indian Charter Flight

Pokhara International Airport successfully conducted its first-ever direct flight destination to India since its inception on January 1, 2023. A specialized medical rescue charter operated by Shree Airlines departed the terminal at 3:09 PM on Wednesday to transport an ailing tourist from Bhopal back to Raja Bhoj International Airport in Madhya Pradesh. The passenger had fallen critically ill during a pilgrimage return from Muktinath and was undergoing treatment at the Charak Memorial Hospital in Nagdhunga, Pokhara. The flight manifesto registered a total of six individuals on board, comprising one patient, three medical personnel, and two family relatives, marking a shift for the facility which previously only handled charters to Bhutan and China.

Construction Commences on Rs 70 Billion Tila-2 Hydropower Project in Kalikot

Developers laid the foundation stone for the 420-megawatt Tila-II Hydropower Project in Serabada, Khandachakra Municipality-8, Kalikot, on May 16. Estimated to cost Rs 70 billion, the plant is being built by Urja Tila Power Company Private. The project utilizes water flows from the Tila River, drawing from a tunnel that begins at Dhanada, Tilagufa Municipality and ends at Serabada. Initial environmental impact assessments are finished, and land acquisition has entered its final phases. The plant aims to solve the chronic energy deficit across the five districts of the Karnali Province, where facilities like a Rs 130 million cold store in Jumla remain under-utilized.

Delays on Rs 15.66 Billion Asian Highway Expansion Incur Rs 3 Billion Excess Costs

The 86.83-kilometer Kanchanpur-Kamala road section along the East-West Highway remains incomplete after six years, adding a Rs 2.972 billion financial burden to the state. The project is funded via 71.22 percent credit from the Asian Development Bank and 28.78 percent state funds under an Rs 15.66 billion initial agreement signed on June 25, 2020. Originally due by October 28, 2023, contract extensions moved the deadline to June 30, 2026. The project has reached 68 percent physical progress, leaving 32 percent undone. Blacktopping covers 24.58 kilometers of the 39.42-kilometer eastern section, where 63.77 percent of the Rs 7.27 billion budget is spent, and 35.61 kilometers of the 47.41-kilometer western section, utilizing 59.42 percent of its Rs 8.807 billion allocation.

80% Construction Completed on Rs 1.50 Billion Ghorahi-Madichaur Power Project

The Ghorahi-Madichaur 132 KV Transmission Line Project reached 80 percent completion, establishing vital infrastructure to link energy generation plants in Rolpa and Rukum to the national grid. The 38-kilometer power corridor runs from Zingni, Ghorahi Sub-Metropolitan-3, Daang to Khugri, Sunil Smriti Rural Municipality-2, Rolpa. Workers successfully installed 101 out of 121 required transmission towers, initiating immediate wire-stringing phases. The Rs 1.50 billion project is financed through 40 percent government funding and 60 percent credit from the Asian Development Bank. Construction teams are building a major substation, staff quarters, and control centers at Khugri while resolving forest-clearing permits via updated environmental impact assessment reports submitted for final ministerial clearance.

Joint District Panel Demands Acceleration of Rs 2.17 Billion Dailekh Gas Project

A joint administrative meeting of local representatives from Dailekh and Kalikot held at Mahabulek on May 17 demanded the immediate extraction of natural gas reserves in Jaljale, Bhairabi Gaupalika-1. The project operates under a Rs 2.17 billion grant from the government of China via the China Geological Survey since 2019. The technical report confirms a reservoir of 80.70 billion cubic meters of methane gas, capable of supplying Nepal for 50 to 60 years. Exploration teams successfully drilled down 4,138 meters. The meeting passed a 6-point declaration demanding “top national priority” for the 2026/27 fiscal plan and budget allocations to complete the missing tracks of the Mahabu Road Section.

Prabhu Capital Allots Rs 251.5 Million Taksar IPO

Prabhu Capital officially completed the allotment of the Taksar Pikhuwa Khola Hydropower Company’s Initial Public Offering on Wednesday. The company issued 2,515,455 shares valued at Rs 251.5 million at a face value of Rs 100 per share. The public issue ran from May 6 to May 11, drawing 2,948,966 applicants for 33,746,200 units. Due to oversubscription, 2,771,252 applications were invalidated, and a lottery distributed 10 shares each to 251,545 investors, while five applicants received 11 shares.

Gold, Silver Prices Decline Today

The price of gold has declined in the domestic market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of the yellow metal has decreased by Rs 3,300 per tola (11.66 grams) today. The Federation has set the gold price at Rs 292,000 per tola today. It was traded at Rs 295,300 per tola on Tuesday. Similarly, silver is being traded at Rs 4,960 per tola today against Rs 5,085 on Tuesday. The price of silver has declined by Rs 125 per tola.