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 100 Billion Liquidity from Banking System

The Nepal Rastra Bank (NRB) drained Rs 100 billion in excess fiscal liquidity from the commercial banking sector using its standardized deposit collection instrument during a competitive bidding session. Financial market logs confirm that class “A”, “B”, and “C” banking corporations participated in the monetary intervention, placing individual institutional bids starting at a minimum baseline of Rs 100 million. The banking regulator structured the liquidity mop-up operation across multi-interest rate matrices, scheduling the total maturity repayment of the 19-day interest-bearing instruments to conclude on July 1.

NEPSE Drops 4 Points to 2,724.03, Turnover Stands at Rs 4 Billion

The NEPSE index declined by 4 points on Friday, closing at 2,724.03 points, while the Sensitive Index slipped by 0.53 points to 467.09 points. A total of 9,856,525 shares of 342 companies were traded, generating a turnover of Rs 4.341 billion. Of the traded stocks, prices of 91 companies rose, 167 declined, and 13 remained unchanged. In terms of turnover, Central Finance led the market, followed by City Hotel, Ankhu Khola Hydropower, Himal Dolakha Hydropower, and Reliance Spinning Mills. Major gainers included Sopan Pharmaceuticals, Apollo Hydropower, and Green Development Bank, while Kalinchowk Hydropower, SBL Debenture, and Nepal SBI Bank Debenture were among the top losers.

Supreme Court Refuses to Stop Trade Union Ban

The Constitutional Bench of the Supreme Court refused to extend its temporary order that was blocking the government from dissolving civil service trade unions. The five-justices panel, which included Chief Justice Manoj Kumar Sharma, Justice Nahakul Subedi, Justice Binod Sharma, Justice Abdul Aziz Musalman, and Justice Mahesh Sharma Paudel, ruled that the case must go to a full hearing before a final decision is made. This ruling cancels the previous May 11 stay order. As a result, the government can now legally move forward with Section 10 of the Some Nepal Acts Amendment Ordinance 2026 to shut down the employee unions.

Ministry Panel Recommends Cancellation of 38 Hydropower Licenses

A high-level investigation panel formed under the Ministry of Energy, Water Resources, and Irrigation recommended the immediate cancellation of 38 non-performing hydropower project licenses representing an aggregate capacity of 1,388 megawatts. The performance review targeting speculative developers who hold power purchase agreements without starting site works also advised revoking 11 inactive licenses issued prior to 2019 that account for 169 megawatts. The report labeled 75 separate energy projects totaling 4,121 megawatts as problematic and advised banning original corporate founders from selling equity shares for five years post-survey to halt speculative trading.

Energy Ministry Allocates Rs 70 Billion for Transmission Infrastructure

The Government of Nepal allocated Rs 70 billion inside the national budget to prioritize transmission line construction and substation electrification as core economic pillars. Strategic energy directives confirm the policy expands private sector participation beyond generation into cross-border power trading networks, targeting the completion of over a dozen strategic transmission corridors next year. Furthermore, the ministry fast-tracked legislative pathways to present the Water Resources Bill and the Renewable Energy Bill during the active parliamentary session while introducing fixed interest rates for hydropower loans and permitting storage-type projects to launch 40 percent initial public offerings during their first operational year.

Industry Ministry Enforces Sanctions Along Sirsiya River Corridor

The Ministry of Industry, Commerce, and Supplies initiated strict environmental enforcement protocols targeting manufacturing plants discharging untreated chemical wastewater along the Sirsiya River Corridor. Official ministerial circulars directed the Department of Industry to inspect regional manufacturing sites, reinforcing statutory compliance codes that mandate functional effluent treatment systems prior to plant expansion approvals. Authorities confirmed that factories operating in violation of federal environmental guidelines will face immediate operational suspensions, citing severe public health risks generated by illegal factory waste dumps into local public waterways.

State Warehouses Hold Nearly One Hundred Million Kilograms of Untouched Fertilizer

Strategic distribution data from the Ministry of Agriculture, Forest, and Environment confirmed that 98,235.45 metric tons of state-subsidized chemical fertilizer remain uncollected inside provincial supply hubs. Inventory logs show Koshi holding 11.9 million kg of urea and 2 million kg of DAP, while Madhesh holds over 31.1 million kg of urea and 11.4 million kg of DAP. To prevent seasonal crop shortages, federal supply channels have contracted the delivery of 90,000 metric tons of fertilizer through July, while moving forward with government-to-government (G2G) agreements with India to import 30,000 metric tons of urea and 20,000 metric tons of DAP.

Problematic Cooperatives Management Board Exposes 132 Delinquent Debtors

The Office of the Problematic Cooperative Management Committee published a public blacklisting roster identifying 132 delinquent borrowers tied to distressed credit unions. The regulatory transparency list specifies 12 non-compliant loan accounts originating from Hamro Naya Krishi Cooperative Limited alongside 120 defaulted credit lines linked to Krishi Bikas Multipurpose Cooperative Society Limited. Financial oversight officers finalized the disclosure list based on verified loan ledgers, warning that individuals who fail to contact liquidators to settle outstanding principal lines will face immediate asset seizure and prosecution under prevailing banking and financial safety codes.

Poultry Association Raises Farm-Gate Egg Prices 4 Times in a Month

The Nepal Layers Poultry Farmers Association implemented 4 consecutive upward price revisions for commercial egg shipments between May 17 and June 11. Utilizing Chitwan District as the national market baseline, regional pricing boards increased the farm-gate cost of XL, large, and medium eggs by Rs 45 per crate, while lifting small egg shipments by Rs 500 per carton. Following the commercial agricultural adjustment, wholesale rates reached Rs 575 per crate for XL, Rs 560 for large, Rs 530 for medium, and Rs 3,200 per carton for small configurations, while the recommended public retail ceiling held at Rs 25 per egg.

Araniko Highway Expansion Records Fifty-Seven Percent Completion

The 15.8-kilometer six-lane road expansion project on the Araniko Highway between Suryabinayak and Dhulikhel achieved a 57 percent physical completion rate amid prolonged funding shortfalls and local right-of-way property disputes. Construction logs outline that the first segment running from Suryabinayak to Sanga stands at 52 percent completion under a Rs 3.89 billion infrastructure contract, while the Sanga-Dhulikhel section reached 70 percent completion under a Rs 4.056 billion plan. To support the project, the government allocated Rs 908.9 million for the upcoming 2026/27 fiscal cycle to advance the placement of service lanes and three-meter center medians.

Sudurpaschim Agriculture Ministry Faces Audit Over Unmonitored Grants

The Eighth Annual Report of the Office of the Auditor General revealed that the Far West Province Ministry of Land Management, Agriculture, and Cooperatives failed to monitor Rs 381.5 million in distributed farming subsidies. Audit logs show Agriculture Knowledge Centers and Veterinary Expert Centers gave 179,554,000 and 202,027,000 to 1,940 and 1,280 recipients, respectively, without tracking productivity impacts or compliance with the five-year project continuity rule. Out of an annual budget of Rs 2.803 billion, the ministry spent only 66.56 percent, leaving key schemes like cold stores, milk powder plants, and around 501174.29 square meters of leased land site completely unutilized.

Sudurpaschim’s Local Units Warned Over Delayed Fertilizer Dispatch

The Ministry of Agriculture, Forest, and Environment issued a final operational notice to 26 local governance units across nine districts of Sudurpaschim Province for delaying chemical fertilizer transport from distribution depots. Storage sheets note that major farming centers, including Godawari, Gauriganga, Janaki, Dhangadhi, Bhimdatta, and Bedkot, failed to clear their designated agricultural transport quotas despite ongoing rice cultivation cycles. Supply supervisors warned that if municipal authorities fail to dispatch transit vehicles to clear the current 168,802 tons of regional depot stock, warehouses will distribute supplies directly to local farmers to protect regional harvests.

Dairying Production Incentives Distribute Rs 2.1 Million in Anbu Khaireni

The Anbu Khaireni Rural Municipality, Tanahun, distributed around Rs 2.1 million in financial subsidies to regional dairy farmers through its Production-Based Dairy Subsidy Program. The localized financial stabilization deployment covered the aggregate production of 359,190 liters of milk tracked across the administrative zone over the first and second quadrimester intervals of the current fiscal year. Treasury disbursement ledgers confirm that agricultural administrators calculated the municipal funding transfers at a fixed incentive rate of Rs 6 per liter of milk to fortify smallholder income and boost commercial farming outputs across regional livestock communities.

Traffic Violations Secure Nearly Rs 2 Million in 24 Hours

The Kathmandu Valley Traffic Police Office penalized 2,223 motorists for breaking transit regulations over a 24-hour enforcement sweep, registering more than Rs 1.8 million for the state treasury. Highway logbooks verify that checkpoint guards fined 94 individuals for driving under the influence of alcohol, 150 operators for running unauthorized ride-sharing trips, 177 drivers for traffic light infractions, and 118 motorists for tracking past speed limits. Additionally, road units disciplined 61 drivers for lane breaches, 154 for horn violations in silent zones, 98 for sidewalk parking, and 120 for wrong-way driving maneuvers.

Division Forest Office Begins Managing Old Timber in Chitwan

The Division Forest Office in Chitwan has started managing 5,200 cubic feet of five-year-old Sal (Shorea robusta) timber located within the national forest area. According to Bishnu Prasad Acharya, chief of the Division Forest Office, the management process was initiated following the third amendment of the Forest Act, 2022. The amendment authorizes the management of Sal timber that is over five years old, Sissau (Dalbergia sissoo) timber over two years old, and other types of wood that are more than a year old. The ‘A’ grade Sal timber, currently located in the Satanchuli Community Forest and Chumlingtar, is expected to generate revenue between Rs 1,000 and Rs 1,250 per cubic foot.

Switzerland Signs Agreement to Support Local Revenue Reform in Nepal

Switzerland and Nepal on Friday signed an agreement to implement the Municipal Revenue Enhancement Project (MunRev), aimed at strengthening the revenue generation capacity of local government units across the country. The agreement was signed by Danielle Meuwly, ambassador of Switzerland to Nepal, and Dhani Ram Sharma, joint secretary at the Ministry of Finance. Under the project, Switzerland will support local government units in improving their own-source revenue systems, helping municipalities enhance public service delivery and respond more effectively to citizens’ needs. The initiative also seeks to strengthen fiscal capacity, promote transparent and accountable governance, and reinforce local institutions to support sustainable development outcomes. Officials said the agreement reflects the long-standing development partnership between Switzerland and Nepal, particularly in the areas of governance reform and fiscal decentralization.

Gold Traded at Rs 292K, Silver at Rs 4,840 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 increased by Rs 5,300 per tola (11.66 grams) today and is currently trading at Rs 292,000. On Thursday, gold was traded at Rs 286,700 per tola. Similarly, the price of silver has also gone up today. The Federation stated that the price of silver increased by 190 rupees per tola today and is trading at Rs 4,840. On Thursday, silver was traded at Rs 4,650 per tola.