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 Absorbs Rs 60 Billion Excess Liquidity

The Nepal Rastra Bank (NRB) executed an absolute liquidity management operation within domestic monetary markets, absorbing Rs 60 billion from banking channels through its specialized deposit collection instrument. Commercial banking institutions holding excessive idle funds participated in the competitive multi-interest bidding pool, which required minimum structural entries valued at Rs 100 million scaled evenly in Rs 50 million increments. Central treasury managers limited direct auction access exclusively to class “A”, “B”, and “C” licensed banking operations, finalizing a fixed 23-day liquidity maturity window that sets the official maturity payout dates for principal and interest settlement on July 3.

NEPSE Rises by 2.57 Points, Turnover Drops to Rs 4 Billion

The Nepal Stock Exchange (NEPSE) index posted a slight recovery on Tuesday, rising by 2.57 points to settle at around 2,736 points, after declining continuously over the previous four trading sessions. Market turnover, however, fell sharply to Rs 4.29 billion, down from Rs 6.44 billion in the previous session. A total of 127 companies saw gains, 134 declined, and 10 remained unchanged. Sectoral movements remained subdued, with all group indices fluctuating within 1 percent. Banking rose marginally by 0.07 points, while hydropower and hotel & tourism gained 0.65 percent and 0.54 percent respectively. Microfinance fell by 0.44 points, and insurance groups also declined. Shares of newly listed companies, including Sopan Pharmaceuticals, Kalinchowk Hydropower, and Apollo Hydropower, hit the 15 percent upper circuit, while other notable gainers included Saptakoshi Development Bank and Bungal Hydropower. Upakar Microfinance was the biggest loser, falling 8.71 percent.

Retail Inflation Reaches 5% in May

Macroeconomic tracking reports published by the Nepal Rastra Bank show that the year-on-year consumer inflation rate hit 5.04 percent during the tenth month (July, 17, 2025 to May 14, 2026) of the fiscal year 2025/26, climbing significantly from 2.77 percent recorded during the same period last year. Segment analysis indicates that service and non-food charges grew by 5.26 percent, while essential food and beverage costs escalated by 4.63 percent, driven by an 18.60 percent spike in retail fruit markets and a 15.30 percent surge in national transportation fees. Across provincial boundaries, Koshi Province registered the highest price escalation at 5.64 percent, while neighboring India managed to anchor its domestic retail inflation rate down to 3.48 percent.

MCA-Nepal Begins Transmission Line Construction

The Millennium Challenge Account Nepal (MCA-Nepal) launched the official construction phase for its flagship electricity transmission project, breaking ground on the critical Ratamate and New Damauli high-voltage substations along with a 297-kilometer power line grid. Funded through a USD 550 million grant from the American Millennium Challenge Corporation (MCC) paired with a USD 197 million counterinvestment from Nepal, the structural grid builds three major 400 kV substations. Project maps trace the massive transmission framework through separate specialized construction corridors managed by global infrastructure consortia, including Lapsiphedi-Ratamate-New Hetauda and New Damauli-New Butwal routes designed to minimize domestic power distribution bottlenecks.

Organized Rumor Campaign Targeting Me and the Budget: Finance Minister

Finance Minister Swarnim Wagle has stated that an organized campaign has been launched to spread rumors against him. He made these remarks on Wednesday during a discussion on the budget organized by the Finance Committee of the House of Representatives. “Instead of discussing the budget, the House of Representatives was disrupted, and an organized rumor campaign was spread against me,” he said. “I have come to the parliamentary committee to address and answer to exactly that,” he added.

Panel Demands Scrap of Idle Hydropower Licenses

A high-level evaluation committee presented a comprehensive review document to the Ministry of Energy, Water Resources, and Irrigation urging deep legal overhauls within the state’s commercial water resource permitting framework. The technical review panel recommended using Section 8 of the Electricity Act 1992 to systematically cancel generation licenses held by developers who fail to initiate physical dam construction despite completing formal Power Purchase Agreements (PPAs). The review board urged the state to eliminate overlapping jurisdictions between the Investment Board, Ministry of Industry, and Ministry of Energy, while replacing the traditional “first-come, first-served” allocation policy with competitive bidding structures under a unified National Electricity Development Plan.

Around 2.5 Million Farmers Enrolled in National Listing System

Around 2.5 million farmers have been enrolled in the government’s national farmer listing system, a database designed to support the distribution of agricultural services, subsidies, and other support programs. The listing process is based on farmers’ landholdings and agricultural production records. According to the Agriculture Information and Training Center, the system is intended to strengthen service delivery and improve the targeting of government assistance. Data from the Agriculture Census 2022 shows the country has approximately 4.1 million farmers, with efforts continuing to register the remaining farmers. Once the registration process is completed, farmers will be categorized into subsistence, small, medium, and large-scale groups. The government also plans to issue farmer identity cards and integrate farmers into a digital information system to facilitate access to inputs and agricultural support services.

Property Inquiry Commission Extends Asset Disclosure Deadline to July 16

The Property Inquiry Commission has extended the deadline for current and former public officials to submit their property details until July 16, granting a final one-month extension to facilitate the collection of required documents. The commission said the deadline was extended after receiving requests from individuals both inside and outside the country who reported difficulties compiling property records within the previous timeframe. More than 3,500 property declarations and over 60 complaints have been received so far. The commission is expected to begin the investigation process after reviewing the submitted details. The commission is investigating the assets of individuals who held public office between 1991 and 2026, including elected representatives, senior civil servants, constitutional officeholders, and officials of public institutions. Authorities estimate that property details from 40,000 to 50,000 individuals could eventually be collected as part of the inquiry.

Tourism Income Falls 2.2 Percent, Service Sector Deficit Widens

Tourism income declined by 2.2 percent in the first 10 months of fiscal year 2025/26 (July 17, 2025, to May 14, 2026), while the country’s net service income remained in deficit at Rs 68.22 billion, according to the latest report of the Nepal Rastra Bank (NRB). The NRB reported that tourism earnings stood at Rs 74.18 billion during the review period, down from Rs 75.83 billion in the corresponding period of the previous fiscal year. Travel-related expenditure fell by 3.4 percent to Rs 177.87 billion from Rs 184.22 billion a year earlier. However, spending continued to far exceed tourism income, contributing to the deficit in the service account. The report also showed that expenditure on overseas education increased to Rs 120.50 billion from Rs 112.39 billion in the same period last year, making it one of the major drivers of the service-sector deficit.

Spring Mountaineering Generates One Billion Revenue

The Department of Tourism wrapped up the spring mountaineering cycle, generating Rs 1.264 billion in aggregate government revenues from 1,195 registered international and domestic climbers. Official record logs show that 495 individual mountaineers from 56 countries secured explicit climbing clearances for Mount Everest, with Chinese nationals making up the largest single group at 109 successful summits. The fiscal breakdown confirms that Mount Everest permits alone brought Rs 1.081 billion into state coffers, supplemented by separate revenue streams from Mount Lhotse, Makalu, and Ama Dablam, while veteran local guides set new world records for cumulative high-altitude ascents.

Flydubai to Launch Daily Pokhara-Dubai Flights from September 23

Flydubai will begin daily Dubai-Pokhara-Dubai flights from September 23 after receiving approval from the Civil Aviation Authority of Nepal (CAAN), according to Pokhara International Airport officials. The airline’s schedule was cleared on Monday following a recent operational inspection at the airport. Airport authorities and Pokhara leaders called the move a major step toward establishing Pokhara as Nepal’s third international gateway, boosting tourism and global connectivity. The route is expected to link Pokhara with over 300 cities via Dubai. Despite opening in 2023, Pokhara International Airport has mostly handled domestic flights, with limited short-lived international operations so far. Tourism entrepreneurs hope the new service will unlock major investment and visitor growth in the region.

Factories Pay Arrears Following Eviction Warning

The Ministry of Industry, Commerce, and Supplies, under the leadership of Minister Gauri Kumari Yadav, recorded swift revenue turnarounds across industrial zones after issuing a strict enforcement warning against prominent manufacturing operations holding extensive unpaid real estate leases. Within twenty-four hours of the state’s asset-seizure notice, 12 major manufacturing companies processed their long-overdue rental balances to prevent utility disconnections and facility closure orders inside the Balaju Industrial Zone Management Office. Minister Yadav established an active one-week final settlement window for over 300 delinquent entities, indicating that any commercial operators failing to provide verified bank deposit vouchers will face direct corporate permit cancellations and systematic sealing of their manufacturing yards.

Rasuwagadhi Hydroelectric Repairs Speed Up

The project execution unit at the 111-megawatt capacity Rasuwagadhi Hydroelectric Project accelerated emergency structural reconstruction works along its main river dam structures following major flash floods originating from the Lhende River. Infrastructure damage logs verify that the river surge severely battered the exterior headworks, intake basins, and primary transport bridges, causing a total production shutdown at the Rs 23.73 billion power facility. Engineering teams successfully cleared accumulated silt deposits from the central desilting basin and underground headrace tunnels, completing system restorations to resume test power generation across three internal Francis turbines that route 80 cubic meters of river water per second.

Delay in Support Price Leaves Chitwan Farmers Disappointed

Farmers in Chitwan say they have not received the government-fixed minimum support price for early spring paddy, locally known as Chaite paddy, leaving many producers disappointed after harvest. Farmer groups and cooperatives estimate that paddy cultivated on around 1,000 hectares has been sold without the benefit of the support price. Farmers in Khairahani Municipality are among those most affected. Agricultural organizations say the delay has hit growers of spring paddy varieties such as local Chaite-5, Hardinath-1, PR, and Taichin, increasing uncertainty over returns from the crop. The Agriculture Development Office, Chitwan, attributed the problem to delays in the government’s decision on the minimum support price. This year, spring paddy was cultivated on approximately 9,000 hectares across the district.

11 Health Institutions Face Action Over Unpaid Regulatory Fees

The Ministry of Health and Food Safety has decided to take action against 11 health institutions for failing to pay fees required under bed-capacity regulations. The ministry has ordered the recovery of Rs 17.8 million in outstanding payments from the institutions concerned. According to the ministry, the move is part of efforts to strengthen good governance, transparency, and legal accountability in the health sector. The recovery process has been initiated in response to issues highlighted in reports of the Office of the Auditor General, which identified unpaid regulatory fees owed by a number of health facilities. The ministry said implementation of the decision is now underway.

Shuklaphanta Promotes Commercial Worm Fertilizer

The Shuklaphanta Municipality established a dedicated eco-farming skill transfer project under its One Ward, One Enterprise master scheme to incentivize chemical-dependent vegetable footprints to transition into commercial worm-fertilizer production. Local governance units partnered alongside specialized environmental development boards to conduct practical soil management workshops for regional farmers, demonstrating low-cost biological waste composting systems that preserve native nitrogen, phosphorus, and potassium levels. Municipal technical logs confirm that regional agro-hubs built 28 specialized worm compost processing units within the Shuklaphanta-9 community cattle holding complex, while expanding subsidized distribution channels for required farming machinery to protect regional topsoil layers from commercial chemical degradation.

Gold Traded at Rs 291,800, Silver at Rs 4,740 Today

Gold and silver prices witnessed a sharp decline in the domestic market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold plummeted by Rs 10,100 per tola (11.66 grams), bringing the trading price down to Rs 291,800. On Tuesday, the precious metal had traded at an all-time high of Rs 301,900 per tola. Similarly, silver prices also registered a drop today. The association reported that silver fell by Rs 180 per tola, trading at Rs 4,740. On Tuesday, silver was priced at Rs 4,925 per tola.