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:

NEPSE Extends Weekly Losing Streak, Closes at 2,649.51

The Nepal Stock Exchange (NEPSE) continued its downward trend on Friday, slipping 2.00 points (0.07%) to close at 2,649.51, extending losses for the fifth consecutive trading day. Despite the decline, daily turnover rose to Rs 3.94 billion, with 7.72 million shares traded across 359 companies. Of the listed firms, 85 gained, 170 declined, and 20 remained unchanged. The Trading sector posted the highest gain, while most major sectors closed lower. Snow Rivers Limited hit the 15% positive circuit, whereas Kalika Microfinance Financial Institution Limited was the day’s biggest loser, dropping 10.76%.

Stock Market CGT Revenue Falls 37.5% In First 11 Months

Nepal’s capital gains tax (CGT) collection from the stock market dropped 37.5% to Rs 9.54 billion in the first 11 months of the current fiscal year, compared with Rs 15.27 billion during the same period last year. The decline comes amid weak market performance, with the NEPSE index struggling to regain previous momentum. Monthly CGT collection also fell to Rs 431.8 million from Rs 1.73 billion two months earlier. Despite the new budget policy making CGT a final withholding tax, falling revenue reflects fewer profitable stock transactions.

Nepal Chamber Urges Supportive Monetary Policy for Economic Growth

The Nepal Chamber of Commerce has urged Nepal Rastra Bank to introduce a monetary policy that addresses financial challenges and supports investment, production, and private sector growth. A delegation led by President Kamlesh Kumar Agrawal requested policies enabling credit expansion above 20 percent to achieve the targeted 7 percent economic growth. The Chamber also called for permanent single-digit interest rates, repeal of the Working Capital Loan Guidelines, and practical anti-money laundering rules. It highlighted concerns over slow economic activity, difficult KYC procedures, and challenges faced by entrepreneurs.

India Lifts LPG Restrictions as Energy Supply Recovers

India has removed restrictions on commercial LPG supplies after energy disruptions caused by Middle East conflicts began easing. The Ministry of Petroleum restored non-domestic packed LPG supplies to pre-crisis levels and resumed bulk LPG supply at 50 percent of previous consumption. As the world’s second-largest LPG importer, India faced major challenges due to its dependence on Middle Eastern supplies and disruptions at the Strait of Hormuz. Improved shipping conditions have helped stabilize energy supplies, while the government continues measures to reduce economic pressure and restore market stability.

Three Nepali City Leaders Attend MuniExpo Conference 2026 in Israel

Three Nepali city leaders participated in the MuniExpo Conference 2026 held in Israel from June 21 to 25 at the invitation of Israel’s Ministry of Foreign Affairs. The delegation included Pokhara Metropolitan City Mayor Dhan Raj Acharya, Janakpurdham Sub-Metropolitan City Mayor Manoj Kumar Sharma, and Kathmandu Metropolitan City Acting Mayor Sunita Dangol. They joined 30 mayors from around the world at the event. During the visit, the Nepali delegation also observed Israel’s emergency medical response system at Magen David Adom facilities in Ramla and Jerusalem.

RSP Convention Generates Over Rs 500 Million for Chitwan Economy

The first general convention of the Rastriya Swatantra Party (RSP) generated an estimated Rs 500 million in economic activity in Chitwan and nearby areas. The weeklong event drew thousands of delegates, supporters, and visitors, with up to 20,000 people staying in the district on its busiest day. Organizers estimate around Rs 200 million was spent on accommodation, while party expenses exceeded Rs 40 million. The convention boosted hotels, restaurants, transport services, and demand for local agricultural products. Police recorded around 2,200 vehicles entering Chitwan from outside the district during the event.

Government Warns Hospitals, Banks Over Labor Law Violations

The Department of Labor and Occupational Safety has warned private hospitals, banks, and financial institutions of strict legal action for violating labor laws. Inspections found workers, including doctors, healthcare staff, security guards, and outsourced employees, were denied overtime pay, minimum wages, festival allowances, and adequate breaks while working excessive hours. The department has ordered non-compliant institutions to correct the violations within a specified timeframe. Between July 2025 and mid-June 2026, it inspected 3,267 establishments and conducted over 3,100 child labor inspections as part of efforts to enforce labor laws and protect workers’ rights.

Nepal’s Record Exports Driven Mainly by Processed Imports

Nepal exported goods worth a record Rs 278 billion in the first 11 months of fiscal year 2025/26, but most of the growth came from processing imported raw materials rather than exporting domestically produced goods. Soybean oil, sunflower oil, and palm oil—made from imported crude oils and re-exported mainly to India—dominated the export list. Among indigenous products, cardamom and carpets ranked second and third, contributing only a small share of total exports. The figures highlight Nepal’s growing value-addition industry but also the limited growth of exports based on locally produced commodities.

Government to Expand Local Employment Centers with Skills, Entrepreneurship Services

The government has approved a new procedure to transform local Employment Service Centers into Employment, Skill, and Entrepreneurship Centers, integrating employment, skill development, and entrepreneurship services under one roof. Issued under the Right to Employment Act, the new framework shifts the centers beyond unemployment registration and the Prime Minister Employment Program. They will now maintain local unemployment data, provide market-oriented skill training, promote entrepreneurship, and offer employment assistance, aiming to strengthen local job creation and economic opportunities through a more comprehensive service delivery model.

Bara Produces Over 93,000 Metric Tons of Spring Rice

Farmers in Bara produced 93,330 metric tons of spring rice this year from 18,300 hectares of cultivated land, maintaining an average yield of 5.1 metric tons per hectare. According to the Agriculture Knowledge Center, the harvested paddy is selling at Rs 2,000 per quintal in the Kalaiya market, generating an estimated Rs 1.87 billion in income for farmers. Although the cultivated area increased slightly from last year, total revenue declined compared to the previous season, when farmers earned about Rs 2.02 billion from spring rice sales.

Bagmati Province to Launch Special Program to Protect Pangolin

The Bagmati Province government will introduce a special program in its fiscal year 2026/27 budget to protect the pangolin as the province’s pride animal. Finance and Planning Minister Prabhat Tamang announced initiatives including mandatory use of domestically produced timber in government buildings, eco-friendly technologies, and integrated water resource management to address climate risks. The government also plans to establish local goods and agricultural produce collection and processing centres, along with a “tourist kitchen” in each district to promote local products.

Gandaki Assembly Debates Budget Allocations for Fiscal Year 2026/27

The Gandaki Provincial Assembly continued discussions on the Appropriation Bill for fiscal year 2026/27, focusing on ministry-wise budget allocations. Lawmakers called for improvements in budget formulation and effective implementation while highlighting both strengths and shortcomings of the proposed budget. Opposition leader Hari Bahadur Chuman stressed the need to strengthen federalism, while RPP leader Pancha Ram Gurung criticized the lack of coordination among ministers during budget preparation. The provincial government has proposed a Rs 32.99 billion budget for the upcoming fiscal year, with deliberations on the Appropriation Bill still underway.

29 Local Governments Race to Pass Budgets by Mid-July

The 29 local governments that missed the June 24 deadline to present their budgets for fiscal year 2026/27 are preparing to table and endorse them by mid-July, before the current fiscal year ends. According to local government associations, 15 municipalities and 14 rural municipalities failed to meet the initial deadline due to internal challenges. Officials from Baglung Municipality and Dharan Sub-Metropolitan City said delays stemmed from health issues and budget deficits, respectively. While missing the June deadline does not affect federal grants, local bodies must pass their budgets by mid-July to comply with legal provisions and performance evaluation criteria.

Rs 2.36 Million Emergency Relief Supplies Handed Over to Jajarkot Municipality

Emergency non-food relief materials worth Rs 2.36 million have been provided to Nalgad Municipality of Jajarkot under the EU-supported ‘Pratibaddha’ project. The supplies include family tents, non-food relief kits, dignity kits, and warehouse pallets to strengthen disaster preparedness. Implemented by the European Union, People in Need, Community Self-Reliant Centre, Save the Children, and Scot Wilson Nepal, the initiative aims to ensure quick responses during disasters. Relief materials worth around Rs 24.8 million are being pre-stocked across 10 local levels in four provinces for emergencies such as earthquakes, floods, landslides, and fires.

Commercial Taro Farming Flourishes in Duduwa

Commercial taro (pindalu) farming is transforming the livelihoods of farmers in Duduwa-6, Baldipurwa, due to low investment and high returns. Local grower Nandaram Maurya, along with peers like Shrichand Murau and Ambar Murau, has capitalized on the five-month crop, which primarily requires basic spending on seeds, fertilizer, and irrigation. Recent road upgrades have revolutionized the local economy, allowing blacktopped roads to bring traders directly to the fields for bulk purchasing. This saves farmers transportation costs. With favorable market prices and high yields this season, locals believe taro can become a major regional cash crop if agricultural inputs remain accessible.

Raghuganga Rural Municipality Orders Closure Of Illegal Crusher Industries

Raghuganga Rural Municipality has directed unregistered and illegally operating crusher industries within its jurisdiction to shut down operations and remove their equipment within one month. Chief Administrative Officer Kulraj Paudel said the notice, effective from June 25, warns of legal action against businesses involved in unauthorized extraction of riverbed materials, except those approved for specific hydropower and development projects. Municipality Chairman Bhava Bahadur Bhandari said five crusher industries are operating in the area, with some completing legal requirements. The action aims to prevent revenue losses caused by illegal extraction and smuggling of river-based materials.

Myagdi Municipality Distributes Subsidized Mini-Tillers to 72 Farmers

Malika Rural Municipality in Myagdi has distributed subsidized mini-tillers to 72 farmers, agricultural firms, and groups under a 60 percent subsidy scheme aimed at reducing production costs and easing labor shortages. The municipality allocated over Rs 3.2 million for the program, with beneficiaries covering the remaining 40 percent of the cost. The distribution included diesel- and petrol-powered machines selected through competitive bidding. Local officials say mini-tillers significantly reduce the time and expense of land preparation, helping farmers cope with labor shortages while replacing traditional oxen for plowing.

Women’s Cooperative Launches Branded Turmeric Production in Gulmi

A women’s cooperative in Malika Rural Municipality, Gulmi, has begun commercial production and marketing of locally produced turmeric. Supported by an agriculture and livestock entrepreneurship project implemented by Janabikas Kendra, Malika Rural Municipality, and Heifer Project Nepal, the initiative has equipped local women with modern processing machinery. The cooperative has priced its pure turmeric at Rs 400 per kilogram and currently includes women farmers from three wards. It also plans to package and market other local products, including flour and grit, while promoting indigenous crops and strengthening agricultural productivity in the area.

Jumla Traffic Police Collect Rs 812,000 in Revenue

The District Traffic Police Office in Jumla collected 812,000 rupees in revenue during the first 11 months of the current fiscal year through fines imposed on drivers for traffic violations and drunk driving. Assistant Sub-Inspector Jagat Bahadur Kathayat said the penalties were collected from various offenses. During the same period, Jumla recorded 68 road accidents, but no deaths or human casualties were reported. Traffic officials said the rise in vehicle movement is linked to rapid urbanization in the district.

Gold rises by Rs 800 per tola, silver declines in Nepali market

The price of gold in the Nepali market increased by Rs 800 per tola on Friday, while silver prices declined, according to the Federation of Nepal Gold and Silver Dealers’ Association. Fine gold is being traded at Rs 279,100 per tola, up from Rs 278,300 on Thursday. Meanwhile, silver fell by Rs 55 per tola to Rs 4,180, compared with Rs 4,235 in the previous trading session. The latest rates reflect mixed movements in the domestic precious metals market, with gold extending gains while silver posted a daily decline.