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 Standing Deposit Facility Regulates Interbank Interest Corridor

A Nepal Rastra Bank (NRB) research report confirmed today, Tuesday, that the standing deposit facility serves as the primary operational tool to stabilize fluctuating interbank transaction rates. The structural analysis indicated that whenever financial institutions are unable to deposit surplus funds, interbank loan rates fall below the lowest boundary of the interest rate corridor. To maintain market stability, the central bank enforces a specific rate corridor anchored by a 5.75 percent bank rate at the upper boundary, a 4.25 percent policy rate, and a 2.75 percent standing deposit rate at the lower boundary. Under current open market operational guidelines, commercial banks can utilize daily windows to park excess liquidity and receive a 2.75 percent yield.

NEPSE Gains 22 Points, Turnover Slips to Rs 5.26 Billion

The Nepal Stock Exchange (NEPSE) rose by 22.21 points or 0.80 percent on Tuesday, closing at 2,777.58 points, while daily turnover declined to Rs 5.265 billion from Rs 5.614 billion a day earlier. A total of 11.38 million shares of 346 companies were traded through 61,527 transactions. The sensitive index gained 0.59 percent to 473.51 points. Share prices of 184 companies advanced, while 77 declined and 10 remained unchanged. Of the 13 traded sectors, only the manufacturing and processing index fell, slipping 0.42 percent. Finance posted the highest gain at 6.03 percent, while all other sectors closed in positive territory.

Health Board Mandates Emergency Criteria for Private Sector Payments

The Health Insurance Board issued a directive on June 1, ordering private healthcare providers to limit healthcare package benefits exclusively to patients needing emergency admission or surgery. Operational guidelines confirm that claims submitted for regular checkups disguised as emergency cases will be denied. The state board introduced these specific billing criteria to stop false claims and improve financial oversight across its network of private medical partners. Public users are advised to follow these official criteria and avoid pushing medical staff or hospitals to misclassify treatments.

May Records 19% Spike in Foreign Visitors

The Nepal Tourism Board reported that foreign tourist arrivals crossed the 100,000 threshold in May 2026, with 102,626 international travelers entering the country. This arrival volume marks a 19 percent increase compared to May last year, which brought in 86,216 visitors, and beats the pre-pandemic May 2019 baseline of 78,329. Regional arrivals show India led with 40,782 tourists, followed by China with 11,514, the United States with 9,001, Bangladesh with 5,298, and the United Kingdom with 3,375. Overall, SAARC nations made up 47.2 percent of total inbound travel.

Pulse Imports Drop By 22% Through Birgunj

The Birgunj Customs Office recorded Rs 7.97 billion in pulse imports across 7 varieties during the first 10 months of the current fiscal year. Trade records show a 22 percent drop in value, equal to Rs 2.24 billion compared to the Rs 10.21 billion imported during the same period last year. Volume analysis shows lentil shipments dropped from Rs 4.50 billion down to Rs 3.20 billion. Additionally, kidney bean imports fell to Rs 2.04 billion, chickpea shipments dropped to Rs 1.92 billion, and miscellaneous legumes fell to Rs 420 million.

Dairy Exports Rise by 71% Over 4 Years

The Ministry of Agriculture, Forestry and Environment reported that Nepal has achieved self-sufficiency in milk production, with total output hitting 2,718,177 tons in the fiscal year 2024/2. Production logs show a 3.4 percent average annual growth rate over the past 5 years, generating Rs 28 billion in urban-rural trade. Over the past four years, dairy product exports grew by 71 percent, reaching Rs 4.638 billion in the fiscal year 2024/25, while imports fell to Rs 142.4 million. Local processors also turned 497 million liters of milk into 4,150 tons of milk powder in the fiscal year 2025/26.

Industrial Infrastructure Budget Scaled Back for Upcoming Fiscal Year

The Ministry of Finance reduced funding for the industrial infrastructure development program, which covers special economic zones, for the upcoming fiscal year 2026/27. The new budget sheet sets total funding at Rs 563 million. This is a drop from the revised budget for the current fiscal year 2025/26, where the government allocated Rs 935.6 million to expand industrial zones. Comparing the two financial plans shows a budget cut of Rs 372.6 million, reflecting tighter state spending on infrastructure.

Budget Increased for Siddhicharan Highway Upgrade Project

The government allocated Rs 590.2 million in the upcoming fiscal year 2083/84 budget to upgrade the Mirchaiya-Katari-Ghurmi section of the Siddhicharan Highway. This infrastructure project links 5 districts, including 3 in the upper Sagarmatha zone. The new budget increases funding from the Rs 475.2 million allocated in the current fiscal year. The financial breakdown splits the new funds into Rs 10.9 million for recurrent operational costs and Rs 579.3 million for capital construction.

Lumbini Restructures Project Bank Strategy

The Lumbini Province government started budget planning for the fiscal year 2026/27, drawing large crowds of local representatives to the provincial capital seeking project funding. This push comes as the province tightens its budget from the current year’s Rs 38 billion plan. To manage funds, the provincial planning commission will reject smaller, non-productive projects. The new guidelines require all proposals to be registered in the project bank, setting a minimum funding limit of Rs 3 million for infrastructure and Rs 1 million for other sectors.

Budget Shortfalls Delay Structural Infrastructure Across Sudurpashchim

A review of the Sudurpashchim Province budget shows that slow spending and funding shortfalls have delayed several major infrastructure projects. The plan to widen the 315-kilometer Attariya-Khodpe-Darchula road down to a double-lane highway remains stalled without budget support. Similarly, a Rs 21.19 billion project to upgrade the Gaddachauki-Attariya section of the East-West Highway is delayed due to incomplete engineering studies. On the Mahakali Corridor, a 47-kilometer section remains unfinished because of budget caps, while work on the 210 MW Chainpur Seti hydro project has not yet started.

Sudurpashchim Assembly Begins Debates on Annual Budget Principles

The Sudurpashchim Province government opened formal debates in the provincial assembly today to review the core principles and priorities of the upcoming appropriation bill for the fiscal year 2026/27. The legislative sessions started after a formal proposal by the Ministry of Economic Affairs. Party whips from the Nepali Congress, CPN (UML), and other coalition members joined the initial floor debates to shape the province’s financial plans. The upcoming budget aims to balance local development goals with the province’s revenue limits.

Industrial Corridors in Birgunj Left Out of National Financial Plan

Business leaders in Birgunj expressed frustration over the fiscal year 2026/27 budget, noting that the national plan leaves out key regional economic projects. Local trade bodies criticized the government’s revenue target of Rs 1.406 trillion as unrealistic, given that revenue for the current year is stuck near Rs 1.1 trillion. The budget also drew criticism for rising operational costs, which hit Rs 1.289 trillion, and a new green tax. Additionally, the budget failed to fund the planned Birgunj-Pathlaiya industrial corridor or address domestic pharmaceutical policies.

Himalaya Airlines Conducting Kathmandu-Shenzhen Flight

The Himalaya Airlines is launching a direct flight from Kathmandu to Shenzhen, a city reputed as an economic and technological hub of China. The airline company informed that it was beginning a direct Kathmandu-Shenzhen-Kathmandu flight from June 4. Two flights will be conducted in a week from Tribhuvan International Airport, Kathmandu, to Shenzhen Baoan International Airport, China, and similar numbers from Shenzhen to Kathmandu. According to the company, the Kathmandu-Shenzhen flight is operated on Tuesday and Thursday, while that from Shenzhen to Kathmandu is on Wednesday and Friday. Vice Chair of the Company, Bijay Shrestha, informed that the direct flights connecting Kathmandu to Shenzhen City of China would help expand tourism and trade activities in both countries.

Tarigaun Airport Expansion Receives Rs 250 Million Allocation

The government allocated Rs 250 million in the fiscal year 2026/27 budget to expand the runway at Tarigaun Airport in Dang. The upgrade will extend the asphalt runway from 750 meters to 1,500 meters, allowing 72-seat aircraft to land at the historic airfield. In addition to the airport project, the government approved Rs 550 million under a multi-year plan for the Tulsipur-Dagaura Khola road section. The budget also provides funds to build a new concrete bridge over the Babai River in Sitalpur to improve regional transit.

Valley Traffic Fines 2,093 Drivers, Collects Rs 2.7 Million in 24 Hours

The Kathmandu Valley Traffic Police Office reported that enforcement operations against vehicle operators over the last 24 hours collected Rs 2,736,501 in fines from 2,093 drivers. Performance logs show penalties were given to 92 individuals for driving under the influence, 169 for unauthorized ride-sharing, 141 for running traffic lights, and 101 for speeding. Additionally, the log includes 82 lane discipline violations, 92 illegal horn offenses, 105 sidewalk parking fines, and 129 one-way street violations. The collected funds were deposited directly into the state treasury.

Kathmandu to Host Second Global Consumer Expo Exhibition

The second annual Global Consumer Expo 2026 consumer trade exhibition will open at the Bhrikutimandap exhibition ground in Kathmandu on this coming June 12. Organized by Event Solution, the five-day commercial showcase will host over 100 domestic and international corporate exhibitors before wrapping up on June 16. Project planners estimate that the consumer convention will attract more than 35,000 retail shoppers and business entrepreneurs. The exhibition floor will feature distinct commercial retail segments, spanning everyday household consumables, kitchen applications, consumer electronics, fashion apparel, and cultural handicrafts.

NMB Bank Lists Preference Shares Worth Rs 3 Billion, Trading Starts Tomorrow

NMB Bank formally listed its perpetual non-cumulative preference shares on the Nepal Stock Exchange today, Tuesday. The equity listing includes 30 million units of specialized financial shares valued at a par value of Rs 100 per unit, establishing a total capital float of Rs 3 billion. Financial regulators restricted the secondary market trading of these specific instruments to institutional entities, blocking individual retail investors and mutual funds from trading them. Authorized under special capital adequacy guidelines issued by Nepal Rastra Bank, these investment notes will carry a fixed annual dividend interest yield of 8.25 percent.

Sarvottam Paints Launches Public Share Subscription Phase

Sarvottam Paints Industries will open its initial public offering (IPO) for general investors on June 11 after completing the share allocation phase for migrant workers. The company has permission to issue 25 percent of its capital, offering 850,000 ordinary shares worth Rs 85 million. The firm has already distributed 85,000 shares to migrant workers and 42,000 shares to mutual funds. The remaining 705,500 shares, valued at Rs 70.5 million, are open for public bidding until June 16, with Global IME Capital managing the share sale.

Mandu Hydropower Board Announces 10% Bonus Share Payout

The board of directors of Mandu Hydropower approved a dividend package for its shareholders on June 1, sourcing the payout from accumulated corporate profits. The approved distribution plan grants a 10% bonus share dividend calculated against the company’s current paid-up capital structure. Additionally, the board approved a 0.5263 percent cash dividend to cover shareholder tax liabilities on the transaction. The corporate payout now moves to the Electricity Regulation Commission for official review before going to the upcoming annual general meeting for final approval.

Gold Traded at Rs 311,300, Silver at Rs 5,405 Today

Gold and silver prices have registered an increase in the market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has risen by Rs. 400 per tola (11.66 grams) today, settling at Rs. 311,300. On Monday, gold traded at Rs. 310,900 per tola. Similarly, silver prices have also gone up today. Silver, which traded at Rs. 5,355 per tola on Monday, increased by Rs. 50 on Tuesday to reach Rs. 5,405 per tola.