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 Reports Total Banking Deposits Top Rs 8 Trillion

Financial reports published by Nepal Rastra Bank (NRB) show total liquid deposits held across domestic banks and financial institutions surpassed Rs 8 trillion, hitting Rs 8.14 trillion on May 28, 2026 [Jestha 14, 2083 BS]. Balance sheets confirm that continuous remittance growth pushed incoming cash reserves to Rs 1.659 trillion over the first nine months of the fiscal year, a 39 percent surge compared to last year’s base. Conversely, domestic credit requests remained low at Rs 5.898 trillion, forcing deposit interest yields down to a 3.40 percent average. To manage the Rs 1.3 trillion investment surplus, NRB absorbed over Rs 1 trillion using short-term deposit instruments yielding 2.68 percent to 3 percent interest.

NEPSE Falls 13.46 Points as Turnover Drops to Rs 4.7 Billion

The Nepal Stock Exchange (NEPSE) declined by 13.46 points or 0.48 percent on Thursday, closing at 2,766.78 points. The sensitive index also fell by 1.67 points to 473.76. A total of 10.61 million shares of 353 companies were traded through 51,601 transactions, generating a turnover of Rs 4.703 billion, down from Rs 5.738 billion on Wednesday. Market sentiment remained weak, with share prices of only 63 companies advancing, while 198 declined and eight remained unchanged. Of the 13 sectoral indices, only the Mutual Fund group posted gains, while the remaining 12 sectors closed in the red, led by losses in trading, non-life insurance, and hotels and tourism.

Budget Adjusts Share Terms to Advance Massive Reservoir Projects

The government adjusted financial regulations inside its fiscal year 2026/27 budget to clarify capital assembly hurdles blocking massive storage-reservoir hydro projects. The long-term state blueprint aims to build 28,500 megawatts of power capacity by 2035 to meet domestic power demands and export energy surpluses to Bangladesh and India. To shift reliance away from standard run-of-the-river installations, the modified financial code allows power companies to offload up to 40 percent of their stock during year one if developers guarantee full project equity. Department of Electricity Development records show 27 enterprise groups filed applications to generate 9,487.1 megawatts of reservoir energy, with Nepal Electricity Authority managing 2,811.5 megawatts of that total.

Ministry Implements Higher Duty-Free Custom Thresholds on Private Baggage

The Ministry of Finance updated the national custom code, increasing the tax-free allowance for personal effects brought through land border gates from Rs 100 up to Rs 500. The revised framework guarantees full duty exemptions for international workers who have completed 12 months of work abroad, allowing them to import one television screen up to 65 inches without paying customs duties. Furthermore, international air passengers can include one portable power bank in their tax-free personal luggage list. Customs guidelines allow incoming women to bring up to 50 grams of gold jewelry tax-free, while men receive a 25-gram tax-free allowance. International visitors can export up to Rs 500,000 in local merchandise items if they provide formal VAT invoices.

Transportation Registry Reports 6.2 Million Active Vehicle Registrations

The Economic Survey 2026/27, citing official logs from the Department of Transport Management, revealed that total vehicle registrations across the country reached 6,249,732 units by mid-March 2026. Trade data indicates that 281,921 new vehicle units, including transport buses, utility trucks, passenger cars, and motorcycles, were registered during the current fiscal year alone. Motorcycles represent over 5 million units, making up over 80% of all active road transport. Concurrently, electric vehicle (EV) imports grew 18-fold over 6 years, rising from 2,450 units in fiscal year 2019/20 to 44,509 units by fiscal year 2024/25, which included 12,588 four-wheeled cars and 11,320 electric two-wheelers mostly sourced from China.

Indian Customs Rules Strand 200 Tons of Nepalese Tea

Strict customs checking policies enforced by the Indian Tea Board left over 200 tons of manufactured Nepalese tea stranded across storage warehouses in Siliguri and Kolkata. Following an import freeze that paused transport lines for 19 days starting May 1, trade lines reopened slightly under revised rules on May 19, though actual market sales remain blocked by slow quality tests. The Suryodaya Tea Producers Association reported that laboratory test results for leaf samples have failed to arrive after 7 days of storage. If initial samples fail secondary verification tests, merchants face loss penalties of INR 15,000 in extra evaluation fees per instance on top of basic warehouse storage costs.

Karnali to Build 20-MW Hydro Project via Public-Private Financing

The Karnali Province government announced plans to build and execute a 20-megawatt river run hydro project under an independent public-private financing matrix coordinated with federal departments. Executed under the regional welfare banner of ‘Karnali’s Water, Public Investment,’ the construction capital will be sourced directly via local share allocations sold across the province. Additional clean energy allocations will support the construction of the ongoing Jagadulla A hydro facility using direct regional financing channels. The provincial policy manifesto confirms future infrastructure expansions will deploy solar grids, wind installations, micro-hydro assets, and isolated mini-grid systems to scale the local grid.

Surkhet Main Transmission Grid Knocked Out by Heavy Storm

Repairs to the Kohalpur-Surkhet 132 kV primary power transmission network will require two additional weeks after heavy winds knocked down a support tower inside Banjnath Rural Municipality. Power engineering units traced the failure to a 38-meter-long sal tree that fell outside the 9-meter designated clearance boundary, hitting live lines near the Chisapani military outpost. Engineering teams finished pouring concrete foundations on Monday, leaving a two-week window to upright structural iron works and run new lines. Area grids are routing power through an old 33 kV backup line via Kohalpur and Lamki, which is producing low voltage drops, triggering automated transformer trips across Karnali Province.

APF Confiscates 774 Electric Vehicles Under Tax Evasion Suspicion

The Armed Police Force (APF) seized 774 electric vehicles across domestic border checkpoints under suspicion of systematic customs tax evasion. Security teams extracted the incoming automobile units during night operations conducted on Wednesday across transit routes in Jomsom, Kushma, and Hemja. Joint enforcement details included personnel drawn from APF No. 33 Gulm Mustang, the Myagdi Gulm, No. 25 Chandika Gan Parbat, and No. 24 Kalika Gan Kaski. Additionally, highway patrols seized two cargo vehicles along the Pasang Lhamu highway section in Nuwakot to hand all intercepted assets over to customs offices for investigation.

Simikot Terminal Registers 170 Flights in Single Day

Simikot Airport in Humla logged a record high of 170 commercial aircraft and helicopter movements on Wednesday, driven by arriving religious tour groups. Terminal operations recorded 58 airplane transits traveling the Nepalgunj-Simikot-Nepalgunj loop alongside 112 helicopter trips shuttling passengers across the Simikot-Hilsa-Simikot route. Aviation data indicates 2,124 tourists entered the district over a three-week window using 6 fixed-wing aircraft and six commercial helicopter units operated by Sita Air, Tara Air, and Summit Air. Local logistics teams confirmed that the passengers consisted primarily of Indian religious pilgrims traveling through the terminal to reach the Mount Kailash overland access point.

Unfavorable Seasonal Weather Disrupts Pokhara to Jomsom Commercial Aviation

Tara Air and Summit Air suspended scheduled flight itineraries along the Pokhara-Jomsom air corridor for a duration of 3 months due to monsoon cloud layers and reduced seasonal passenger demand. High-altitude operations halted on May 22, 2026, for Tara Air and on June 2, 2026, for Summit Air, with standard service resumptions planned for September 2026 and August 15, 2026, respectively. Jomsom Civil Aviation Office records show small aircraft units have reallocated paths to the Humla-Simikot sector to manage Indian tourist transport bound for Mount Kailash and Lake Manasarovar via Tibet. Emergency chartered flights and helicopter transits will continue to operate through the off-season. Peak operations historically logged 10 daily arrivals, bringing 150 passengers per day into Mustang.

Department Penalizes 9 Companies for Violations

The Department of Commerce, Supplies and Consumer Protection penalized nine commercial companies following localized market surveillance rounds executed on Wednesday. Inspectors discovered operational violations of the Consumer Protection Act and issued structural compliance guidelines alongside financial penalties. Field records state Town Boys & Girls Hostel inside Lalitpur faced a fine of Rs 50,000 for running an unrenewed commercial property setup. Surveillance reports show further penalties targeted Blue Fox Restaurant in Jawalakhel for Rs 20,000, Shambhala Home in Boudha for Rs 10,000, and Cold & Hot Spicy Noodles for Rs 5,000, while five adjacent outlets received warnings.

Valley Traffic Penalizes 2,445 Drivers, Collects Rs 2.2 Million in 24 Hours

The Kathmandu Valley Traffic Police Office reported that highway checkpoints booked 2,445 motorists for violating road safety laws over the past 24 hours, raising Rs 2.2 million in public revenue. Safety reports indicate that highway patrols cited 128 operators for driving under the influence, 160 for executing unsanctioned ride-sharing trips, 141 for ignoring traffic signals, and 183 for speeding. Logged code infractions include 43 lane discipline errors, 123 illegal horn citations, 14 sidewalk parking tickets, and 166 one-way street violations, while 1,487 operators faced citations for miscellaneous vehicle errors.

Rasuwa Merchants Ordered to Validate Retail Licenses

The District Treasury and Controller Office in Rasuwa issued an official administrative directive ordering area merchants to validate retail licensing profiles before selling excise-dependent goods. Enforcement logs confirm that retail entities operating inside Dhunche, Syaphrubesi, Timure, Thambuchet, Betrawati, Jibjibe, and Parchyang have conducted unsanctioned sales of alcohol, tobacco, and gutkha products. Compliance files show that out of total operating businesses across the region, only 74 in Gosaikunda, 1 in Amachodingmo, 24 in Kalika, 4 in Naukunda, and 6 in Uttargaya hold legal operational clearances. Businesses must obtain a Permanent Account Number from the Galchhi Inland Revenue Office to secure permits. District balance sheets confirm local excise collections generated Rs 899,750 from mid-July 2025 through mid-April 2026.

Govt. Slashes Export Customs Duty on Pine Firewood to 20%

The government reduced export tariff rates applied to pine firewood shipments, dropping the customs duty from 50 percent down to 20 percent following the enactment of the new financial bill. The modified tariff code took effect on May 30, keeping the export tax rate for other timber varieties locked at the original 50 percent level. Plywood Manufacturers Association reports state that pine timber provides around 10 percent to 15 percent of the raw materials needed for local plywood manufacturing mills, which rely mostly on alder wood. Forest product guidelines permit the export of processed wood briquettes, tree branches, sawdust blocks, wood pellets, and raw timber chips under the updated custom rules.

TU Recovers Rs 104.6 Million from Absconding Academic Staff

Tribhuvan University (TU) successfully recovered Rs 104.6 million from academic staff members who violated employment contracts by failing to return after paid study leaves. The Ministry of Education, Science and Technology initiated joint institutional audits to check administrative compliance, structural governance, and fiscal accountability across national university networks. State auditors verified that academic personnel used public funds and research grants to travel abroad but did not return to complete their mandatory teaching assignments. Higher education administrators confirmed that the university is processing additional asset recovery files to reclaim lost state funds from remaining unreturned faculty members.

Mt. Everest Power Development Approves IPO Date

Mount Everest Power Development Company will open its initial public offering (IPO) window starting June 17, following completed stock allocations for local plant residents and migrant workers. Financial filings indicate the upcoming corporate offering will issue 30 percent of the company’s Rs 860 million authorized capital, placing 25.8 million total equity shares on the market. Prior equity allotments issued 860,000 shares to area citizens, 172,000 shares to overseas workers, 34,400 units to staff, and 86,000 units to mutual funds. The secondary release targets retail investors with 1,427,600 shares priced at a par value of Rs 100 per unit. Subscriptions close between June 22 and July 1, 2026, under issue manager NIMB Ace Capital.

Machhapuchchhre Bank Lists Rs 3 Billion Share on Domestic Exchange

Machhapuchchhre Bank Limited listed 3,000,000 preference shares on the Nepal Stock Exchange at a par value of Rs 100 per unit, initiating active secondary market trading on Wednesday. The listed asset class represents the bank’s 8.25 percent Machhapuchchhre Non-Cumulative Non-Convertible Preference Shares. The overall market float generated Rs 3 billion in total investment value.

Gold Traded at Rs 311,100, Silver at Rs 5,285 Today

The price of gold and silver has decreased slightly in the market today (Thursday). According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold today has decreased by Rs 200 per tola (11.66 grams) and is being traded at Rs 311,100. Prior to this, on Wednesday, the price of gold was traded at Rs 311,300 per tola. Similarly, the price of silver has also decreased today. According to the Federation, the price of silver today has decreased by Rs 85 per tola and is being traded at Rs 5,285 per tola. Prior to this, on Wednesday, the price of silver was traded at Rs 5,370 per tola.