KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top economic news highlights.

All Indices Rise on Wednesday as NEPSE Surges for Fourth Straight Day: All indicators of Nepal’s stock market rose on Wednesday, with the NEPSE index, Sensitive Index, and sectoral indices all posting gains. The NEPSE index climbed by 34.42 points, or 1.29%, compared to the previous trading day, reaching 2,694 points. This marks the fourth consecutive day of gains for the NEPSE. Trading volume also saw a significant rise. While the total turnover on the previous day stood at NPR 7.03 billion, it jumped to NPR 9.74 billion today. The hydropower sector accounted for the largest share, with trading worth NPR 4.56 billion. Out of all traded companies, share prices of 182 rose, 65 declined, and one remained unchanged.

Finance Minister Poudel Defends Luxury Tax on Gold, Cites Transparency and FATF Compliance: Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has clarified that the recently enforced luxury tax on gold transactions is aimed at enhancing transparency and helping Nepal exit the Financial Action Task Force (FATF) grey list. Speaking at Wednesday’s National Assembly meeting in response to questions raised over the Finance Ministry’s appropriation bill, Minister Poudel explained that the government has not introduced a new luxury tax but has removed the previous exemption threshold. Previously, transactions involving more than Rs 1 million worth of gold were subject to the luxury tax. That limit has now been lifted to improve regulatory oversight.

NRB Withdraws Rs 60 billion Liquidity Amid Excess in Banking System: With excess liquidity in the banking system, Nepal Rastra Bank (NRB) withdrew Rs 60 billion from the market on Wednesday. According to the NRB’s Monetary Management Department, the liquidity was withdrawn through a 63-day deposit collection instrument via auction. This move follows a similar operation on Sunday, when the central bank withdrew Rs 30 billion for the same duration. Banks and financial institutions interested in investing through the deposit collection tool submitted bids with a minimum of Rs 100 million and a maximum divisible amount of Rs 500 million.

Nepal Rastra Bank Penalizes Two Commercial Banks and Two Payment Service Providers: Nepal Rastra Bank has taken action against Agriculture Development Bank and Jyoti Development Bank for violating unified directives. Agriculture Development Bank was issued only a warning for failing to comply with the Unified Directive, 2024, which applies to class A, B, and C banks and financial institutions. Besides this, payment service providers Paywell Nepal Pvt. Ltd. and Sajilo Pay Payment Service have been completely revoked (their licenses canceled).

SEBON to Amend Rules to Extend Deadline for Brokers: Securities Board of Nepal (SEBON) is amending the Securities Business Regulations, 2007, allowing broker companies that have not met the paid-up capital threshold additional time until the end of Chaitra (mid-April) to comply. The board has sent the amendment proposal to the Ministry of Finance for approval.

Government Targets 100% Electricity Access Within Two Years: Energy, Water Resources and Irrigation Minister Deepak Khadka said the government aims to provide 100% electricity access across the country within two years. Replying to questions during the National Assembly budget session on Wednesday, the minister said programs are underway to increase annual per capita electricity consumption to 1,500 units within two years. He expressed confidence that achieving this target would establish Nepal as an energy-exporting nation and generate NPR 8.886 billion in revenue.

Indian Oil Corporation Lowers Commercial LPG Price in India, NOC Keeps Price Stable: India’s state-owned Indian Oil Corporation (IOC), which sells petroleum products in Nepal, has reduced the price of commercial LPG by INR 58.50 per cylinder in India starting Tuesday. After the reduction, the price of commercial LPG cylinders in Delhi stands at INR 1,665, down from INR 1,723.50. IOC sent the new price to Nepal Monday evening, reducing the price by NPR 51 per cylinder. However, Nepal Oil Corporation kept the gas price stable, while increasing prices for petrol, diesel, and aviation fuel.

Unusual Increase in Paddy Seed Imports in Recent Years: Paddy seed imports have increased abnormally in recent years. Attracted by higher yield prospects, farmers prefer hybrid seeds. In the first 11 months of the current fiscal year alone, NPR 116 million worth of seeds were imported. Customs data shows NPR 88.65 million worth of paddy seeds were imported in the same period last fiscal year. Paddy seeds are imported mainly from India and China. The open border allows significant illegal seed imports from India as well.

Bangladesh Cancels Purchase of 500 MW Upper Karnali Hydropower Electricity: Bangladesh’s interim government has decided to cancel all energy agreements made under the Special Energy Act, putting the import of 500 MW electricity from Upper Karnali Hydropower into uncertainty. India had proposed exporting electricity through a 117-kilometer, 765 kV transmission line. The previous Awami League-led government supported the proposal, but the interim government currently shows no interest in its implementation.

Life Insurance Association Requests Reduction of Reserve Fund from 50% to 20%: The Life Insurance Business Association has requested the Insurance Authority to reduce the existing 50% reserve fund requirement to 20%. Currently, the Nepali Reinsurance Company accepts low-risk businesses but rejects high-risk ones, leading to delays in issuing policies on time. The association said this practice has caused many policyholders to not receive their insurance documents promptly.

Government Increases Re-appropriation of Funds Near Fiscal Year-End: The government has increased re-appropriation of funds near the end of the fiscal year 2081/82 (2024/25). Re-appropriation means transferring budget allocations from one heading to another. Due to inability to spend funds under specified headings, the government increases spending by re-appropriating funds near fiscal year-end. According to the Ministry of Finance, over NPR 450 million was re-appropriated in capital expenditure alone in Baisakh (mid-April to mid-May).

Muglin-Pokhara Road Expansion Project Delayed: The Muglin–Pokhara road expansion project will not be completed within the scheduled time. The project, divided into two sections, shows 85% physical progress in the eastern section with only 10 days left until the deadline, while the western section has only 54% progress with six months remaining. Due to slow construction progress, the project is unlikely to be completed on time in either section. With concessional loan assistance from the Asian Development Bank (ADB), the two-lane road from Anbukhaireni in Tanahun to Pokhara is being expanded to four lanes, and to six lanes in market areas.

Narayangadh-Butwal Road Construction Progress at 69%: The physical progress of the Narayangadh–Butwal road construction has reached 69%. According to Shiva Khanal, information officer for the eastern section of the project, the third extension period is ending soon. China State Construction Corporation started the work on Magh 24, 2075 BS (February 7, 2019), with the original completion date of Shrawan 22, 2079 BS (August 7, 2022). After the initial deadline was missed, the deadline was extended twice, most recently until Shrawan 8, 2082 BS (July 24, 2025). Even with these extensions, only 69% of the work has been completed.

Grid Connection Agreement Signed Between RPGCL and Five Hydropower Promoters: Rastriya Prasaran Grid Company Limited (RPGCL) and five hydropower promotion companies signed an agreement related to grid connection on Tuesday. The agreement was signed by RPGCL CEO E. Sagar Shrestha and representatives of the five hydropower promoters. The agreement covers five projects with a combined capacity of 607 MW: Tilga 91 MW in Kalikot, Malumela Seti River Peaking 72 MW in Bajhang, Mahakali Seti Reservoir 54 MW, Upper Mewa Khola ‘A’ 31.92 MW in Taplejung, and Super Daraundi 9.143 MW in Gorkha.

Chilime Hydropower Project Produces 22.1 MW Daily: The Chilime Hydropower Project, located in Syafrubesi of Rasuwa district, is currently producing 22.1 MW of electricity daily. The hydropower plant is situated in Gosainkunda Rural Municipality-5. Deputy Manager Bimal Khadka said the project is producing at full capacity during the rainy season but only 50% capacity during dry seasons.

NPR 240 million Startup Loans Distributed to 353 Entrepreneurs: A total of NPR 240 million in startup enterprise loans has been distributed to 353 entrepreneurs out of 661 selected for the fiscal year 2081/82 (2024/25). The Industrial Enterprise Development Institute said it expects to distribute loans to all selected entrepreneurs by Ashad (mid-July). Loans are provided at 3% interest, up to NPR 2.5 million.

Skywalk Construction Underway in Babarmahal and Shantinagar, Kathmandu: Construction of pedestrian skywalks has progressed in front of the District Court at Babarmahal and the Shantinagar area in Kathmandu, both congested with heavy vehicular and pedestrian traffic. The skywalks aim to ensure safe and convenient movement for pedestrians. The Ministry of Physical Infrastructure allocated NPR 25 million for the Babarmahal skywalk and NPR 40 million for the one in Minbhawan.

Cable Car to be Constructed Near Supadeurali Temple: A cable car is planned near the Supadeurali Temple in Arghakhanchi to attract both domestic and foreign tourists. The Sandhikharka Municipality executive meeting on Ashad 13 (June 27) recommended Supadeurali Cable Car Pvt. Ltd. for industry registration. According to Mayor Krishna Prasad Shrestha, the cable car will run from Supadeurali Temple to Masina Lake.

Study Begun for Copper Mining in Malika Rural Municipality, Myagdi: A study for copper mining in Okharbot of Malika Rural Municipality in Myagdi district has started. M/S Dongyi Minerals Pvt. Ltd., which has received permission from the Department of Mines and Geology, is preparing an initial environmental impact assessment report for exploration and mining. According to Ward Chair Moti Prasad Budhathoki of Malika-3, a team of geologists will study copper quantity and assess environmental impacts and mitigation during mining.

PhonePe, Kumari Bank Launch Kumari PhonePe Credit Card: PhonePe, in partnership with Kumari Bank Limited, has launched the Kumari PhonePe Credit Card. The bank believes this will strengthen Nepal’s digital credit system. This virtual credit card is now available for Kumari Bank customers through the Kumari Smart Mobile Banking app.

Ganapati Door and Plywood Industry’s Trade Reaches NPR 766 million in Current Fiscal Year: Ganapati Door and Plywood Industry achieved a trade turnover of NPR 766 million in the current fiscal year 2024/25. The company’s trade was NPR 642 million in 2023/24 and NPR 549 million in 2022/23. The company’s trade increased by 19% in 2024/25. It made a net profit of NPR 24 million in 2024/25.

Bikas Hydropower IPO Opens for Public Application: Applications for the Initial Public Offering (IPO) of Bikas Hydropower opened today. Prabhu Capital, the sales manager, announced the IPO opening through a public notice. The company has issued 2,942,760 shares to the public. The company’s paid-up capital stands at NPR 909.13 million. Prior to this, shares were allocated to migrant workers abroad and local residents affected by the project.

Gold Price Increases by Rs 1200 Per Tola: The price of gold has increased in the Nepali market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold rose by NPR 1,200 per tola (11.66 grams). With this increase, the price of hallmark gold is now set at NPR 191,700 per tola. Yesterday, the price stood at NPR 190,500 per tola. Meanwhile, the price of silver has decreased by NPR 10 per tola. Silver is currently trading at NPR 2,145 per tola, compared to NPR 2,155 per tola yesterday.