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 Supervision Report Exposes Banks Exploiting Loopholes to Understate True Risk Profiles

Nepal Rastra Bank’s annual supervision report has exposed serious regulatory gaps and deficiencies in the banking sector, revealing that financial institutions are systematically understating their actual risk profiles. According to the central bank’s report, banks have been maintaining artificially low risk weights on loans under the ‘Regulatory Retail Portfolio’ by exploiting a loophole—applying only a single-threshold criterion rather than comprehensive risk metrics. Furthermore, severe lapses were uncovered in the banks’ Internal Capital Adequacy Assessment Process (ICAAP); many institutions failed to conduct mandatory annual capital reviews mandated by their own internal policies and routinely missed submission deadlines set by the central bank.

Finance Minister Wagle Announces Tax Concessions and Waivers for Young Entrepreneurs

Finance Minister Swarnim Wagle has stated that the government will gradually eliminate the situation where youth are forced to go abroad to fulfill their dreams, noting that this initiative has already begun with the newly introduced budget.

Speaking at the National Youth Entrepreneurship Conference 2026 held in Kathmandu on Sunday, Dr. Wagle mentioned that the foundational work has started through the upcoming year’s budget, with a plan to bring these efforts to a meaningful conclusion within the next five years.

Banks Cut Deposit Rates for Mid-June to Mid-July Amid Over Rs 1 Trillion Excess Liquidity

Commercial banks have further reduced their deposit interest rates for the upcoming month (mid-June to mid-July) as credit demand fails to keep pace with surging deposits. To minimize their cost of funds, 7 out of 20 commercial banks slashed their rates, while 13 kept them unchanged. No bank increased its rates. Because Nepal Rastra Bank (NRB) bars banks from lowering regular savings rates below its 2.75 percent floor, institutions have aggressively cut fixed deposit rates instead. The average maximum interest rate on individual fixed deposits fell from 4.34 percent in the previous month to 4.27 percent for the mid-June to mid-July period.

Government Urges Stakeholders to Follow Hydropower Royalty Distribution Framework

The government has informed concerned stakeholders about the basis and framework for the distribution of royalties from hydropower projects and urged them to implement it accordingly. The Department of Electricity Development has requested that the determination of royalty-sharing proportions be based primarily on the geographical location of projects, the area of affected local governments, and the population of affected areas. According to the department, geographical location will carry a weight of 50 percent, while the area of the affected region and the population of the affected region will each carry a weight of 25 percent.

Tea Industries Announce Shutdown as India’s Testing Delays Disrupt Exports

Tea industrialists in Nepal have announced the closure of their industries after exports were obstructed for one and a half months due to difficulties created by India in the name of quality testing of Nepali tea. The disruption has left produced tea without a market, creating a situation where products risk spoiling. All 56 tea industries in Ilam will shut down from Monday, while 30 tea industries in Jhapa will close from Wednesday Around 100,000 workers and 30,000 farming households are linked to these industries.

Government Allows Private Sector to Import Chemical Fertilizers

The government has granted permission to the private sector to import chemical fertilizers after imports could not be carried out through the global tender process as stipulated in agreements. The Ministry of Agriculture, Forests and Environment has authorized 77 businesses and companies to import chemical fertilizers in accordance with the Chemical Fertilizer Control Order, 1998. The approved companies will primarily import 55 types of listed fertilizers other than urea, DAP, and potash. Permission has been granted to import nutrients required by plants as well as various chemical mixtures.

Supreme Court Says Extension of Service Period for NRB Pension Is Management’s Discretion

The Supreme Court has interpreted the extension of service periods for pension purposes for employees of Nepal Rastra Bank as a discretionary authority of management. The court made the clarification while dismissing a writ petition filed by former Executive Director of Nepal Rastra Bank, Bamdev Sigdel. The Supreme Court stated that extending service periods to qualify for a pension is not a legal right of employees but rather a discretionary authority of management. According to the Nepal Rastra Bank Employee Service Regulations, employees who have completed 15 years of service, have not taken extraordinary leave, and have received more than 75 percent in performance evaluations during the last three years may be granted up to five additional years of service to fulfill the 20-year service requirement needed for pension eligibility.

Government Seeks Public Suggestions on EIA for Siliguri–Jhapa Petroleum Pipeline Project

The government has sought public feedback on the Environmental Impact Assessment (EIA) for the construction of the Siliguri–Jhapa petroleum pipeline and a modern terminal. The Ministry of Agriculture, Forests and Environment has invited opinions and suggestions from the public on the EIA report prepared for the project proposed by Nepal Oil Corporation. The Ministry of Industry, Commerce and Supplies has submitted the EIA report to the Ministry of Agriculture, Forests and Environment for approval. The project will become Nepal’s second petroleum pipeline.

Around 350,000 Old Driving Licences Will Not Be Printed Immediately

Out of 2.9 million backlogged driving licences, around 350,000 licences issued on older dates will not be printed immediately. The Department of Transport Management stated that these licences will not be printed because they have less than one year of validity remaining. However, they can be printed and provided upon request if urgently needed. The department said that printing and sending the licences to offices takes time, and licence holders often delay collecting them. Therefore, such licences will only be printed after renewal.

461 New Industries Registered in First Six Months of Current Fiscal Year

A total of 461 new small, medium, and large industries have been registered across the country in the first six months of the current fiscal year. During this period, Bagmati Province recorded the highest number of registrations with 363 industries, while Sudurpashchim Province recorded the lowest with just 4 industries. The proposed foreign investment in the industries registered during this period stands at Rs 55.83 billion, creating employment opportunities for 22,885 people. Meanwhile, the average capacity utilization of industries during the first six months of the current fiscal year remained at just 42.11 percent.

Kathmandu Metropolitan City Unveils Policies and Programs for FY 2026/27

Kathmandu Metropolitan City (KMC) has officially unveiled its policies and programs for the upcoming fiscal year 2026/27. Acting Mayor Sunita Dangol presented the document on Sunday during the 19th session of the Municipal Assembly. Embracing the continued slogan of “Cultural City, Prosperous Metropolis,” the newly introduced plans prioritize Kathmandu’s historical value, cultural heritage, and modern urban civilization to meet the aspirations of its residents. While ensuring the continuation of incomplete multi-year projects carried over from the current fiscal year 2025/26, the policy sets a long-term vision to transform the federal capital into an inclusive, tech-friendly, safe, green, and innovation-driven smart city.

Pokhara Hits Record Hotel Occupancy as Indian Tourists Flood In

Pokhara is experiencing an unprecedented boom in Indian tourists, driving hotel occupancy to nearly 90% and packing Lakeside streets. Driven by extreme summer heat in India and heavy promotion on social media platforms like TikTok and Facebook, this historic influx has completely transformed Nepal’s traditional rainy “off-season.” Phewa Lake is seeing over 5,000 boaters daily, while trekking routes like Mardi Himal and Annapurna Base Camp are packed with Indian youth. Older travelers are flooding the religious site like Muktinath in Mustang.

Over 3,700 Indian Pilgrims Transit Through Humla for Mansarovar Yatra

The onset of the peak pilgrimage season has brought a massive influx of over 3,700 Indian spiritual tourists to the Himalayan district of Humla, traveling via Simikot Airport and the Hilsa border crossing toward Mount Kailash and Lake Mansarovar in Tibet. According to local authorities, a total of 3,780 Indian tourists—comprising 1,892 women and 1,888 men—have arrived via the Nepalgunj-Simikot route since arrivals commenced on May 13. This surge of 80 to 200 daily travelers has completely filled local hotels to capacity, boosted incomes for hospitality businesses, created immediate employment for more than 30 baggage porters, and opened up a vibrant market for local vegetable farmers.

Sudurpashchim Provincial Assembly Endorses Government’s Annual Policy and Programme

The annual policy and programme presented by the Sudurpashchim Provincial Government for the fiscal year 2026/27 has been endorsed by a majority in the Provincial Assembly. The Provincial Assembly meeting held on Saturday approved the government’s policy and programme for the upcoming fiscal year by a majority vote. Province Chief Najir Miya had presented the government’s annual policy and programme to the Assembly on June 1. Chief Minister Kamal Bahadur Shah had tabled the proposal seeking endorsement of the policy and programme by the Provincial Assembly.

Kavrepalanchok Farmers Face Fertilizer Shortage Amid Busy Farming Season

Most farmers in Kavrepalanchok are currently busy weeding maize planted in their fields, while farmers in some areas have already begun preparations for rice transplantation. As farmers remain occupied with maize cultivation and paddy planting activities, they have once again been forced to face a shortage of chemical fertilizers this year, as in previous years. Farmers in Kavrepalanchok and other districts have been affected because the government has failed to supply chemical fertilizers according to demand through the Agriculture Inputs Company Limited and Salt Trading Corporation.

Ncell Data Center Receives Prestigious International Tier III Certification

The Ncell Data Center has received the globally recognized “ANSI/TIA-942-C Rated 3 Design and Constructed Facility Certification.” According to the company, the internationally recognized Tier III certification further highlights the reliability and security standards of the Ncell Data Center. The data center, also known as an Integrated Data Center, is Nepal’s first government-listed data center and cloud service facility.

Kumari Bank Launches Nepal’s First ERP-Based Digital Loan Platform

Kumari Bank has launched Nepal’s first ERP-based integrated digital loan platform. The bank introduced the service in collaboration with IMS Software Pvt. Ltd. with the objective of taking digital banking to a new level. Under the initiative, the bank will provide unsecured loans to customers through IMS’s ERP software platform. According to the bank, the service eliminates lengthy paperwork and the need for customers to visit branches repeatedly.

Purbanchal Lube Oil Records Rs 675 Million Turnover in First Nine Months of Current Fiscal Year

Purbanchal Lube Oil has generated a turnover of Rs 675 million during the first nine months of the current fiscal year. The company previously recorded a turnover of Rs 899 million in the last fiscal year, Rs 787 million in 2024, and Rs 774 million in 2023. The company’s turnover grew by 12 percent in the last fiscal year. During that same period, its operating profit margin stood at 15.88 percent of total trade, compared to a profit margin of 17.75 percent in 2024. Currently, the company’s total cash reserves stand at Rs 89 million.

Gold and Silver Prices Rise in Nepali Market Today

The prices of both gold and silver have increased in the Nepali market today. According to details published by the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold increased by Rs 1,200 per tola(11.66 grams) on Sunday. The federation stated that the price of fine hallmark gold has been fixed at Rs 293,200 per tola today. Previously, on June 12, gold was traded at Rs 292,000 per tola. Along with gold, the price of silver has also increased. The price of silver has reached Rs 4,895 per tola today.