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.

Monday Sees Highest Stock Market Turnover in Over Three Months: Nepal’s stock market witnessed its highest turnover in nearly three and a half months on Monday, with total transactions reaching Rs 13.18 billion. This marks the highest daily trading volume since Falgun 19, 2081 B.S. (March 3, 2025). In comparison, the previous trading day saw a total turnover of Rs 11.44 billion. Despite the significant surge in transaction volume, the NEPSE index showed only marginal movement, climbing by 2.80 points to settle at 2,658 points. Notably, the number of companies with price gains and losses was evenly matched, with 124 stocks increasing and 124 declining.

Seven Provinces Announce Rs 287 billion Budget for FY 2025/26: The seven provinces of Nepal have unveiled a combined budget of Rs 287.30 billion for the upcoming fiscal year2025/26. This marks a slight increase from the previous fiscal year’s total of Rs 278.70 billion. According to estimates presented by the respective provincial ministers for Economic Affairs and Planning in their provincial assemblies, this year’s capital expenditure allocation stands at Rs 171.17 billion—marginally higher than last year’s Rs 161.41 billion. Meanwhile, recurrent expenditure has risen to Rs 104.09 billion from last year’s Rs 99.62 billion.

Banks’ Excess Deposits at Nepal Rastra Bank Cross Rs 400 billion: As the fiscal year nears its end, credit disbursement has not matched deposit growth, leading banks to park over Rs 414 billion in excess liquidity at Nepal Rastra Bank. This reflects limited lending opportunities despite ample liquidity in the banking system.

New Rs 10 Banknotes Signed by Former Governor Adhikari Enter Circulation: A total of 630 million new Rs 10 banknotes signed by former Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari have come into circulation starting Monday. Executive Director of NRB’s Currency Management Department, Ramu Paudel, confirmed that notes worth Rs 6.3 billion have been distributed. These notes bear the serial number from “32 0000001” to “94 999999” and feature Mount Everest on the left and a watermark of the rhododendron on the right.

Government Collects Rs 1.03 trillion Revenue in 11 Months of FY 2024/25: In the first 11 months of the current fiscal year2024/25, the Government of Nepal collected revenue totaling Rs 1.03 trillion (Rs 1,027.66 billion). During the same period last fiscal year, revenue collection stood at Rs 939.48 billion. With a month still left in the fiscal year, the government’s earnings have increased compared to the previous year. The revenue target until the mid-June was set at Rs 1.234 trillion.

46 Industries Appeal NEA Over Dedicated Line Charges: Most industries involved in the dispute over dedicated and trunk electricity line tariffs have submitted applications for administrative review to the Nepal Electricity Authority (NEA). NEA had published a notice on Baisakh 30, setting a deadline until June 14 for filing applications. NEA spokesperson Rajan Dhakal confirmed that 46 industries filed appeals against the bills they received for using dedicated feeder and trunk lines.

Lock-in Period Ending for Shares of Five Hydropower Companies: Within a month, the lock-in period for promoter, project-affected locals, and employee shares of five hydropower companies will expire. These shares will then become tradable at market rates. This potential increase in share volume raises the risk of price decline. In anticipation, the Securities Board of Nepal (SEBON) has instructed companies to inform the public a month in advance.

Hydropower Sector Leads Share Market Surge: Hydropower has emerged as the top-performing sector in Nepal’s stock market, increasing by 7.8% over two weeks. On Sunday alone, out of Rs 11.44 billion in total share transactions, hydropower companies accounted for 69%, amounting to Rs 7.91 billion. The value of five hydropower companies has hit all-time highs, adjusted for bonus and rights shares issued at different times.

Rs 3.5 billion in FDI Commitments in One Month: In last one month, Nepal received foreign direct investment (FDI) commitments worth Rs 3.5 billion. According to the Department of Industry, commitments were made for 141 industries. Of these, Rs 3.04 billion came via the approval route (53 industries), and Rs 501.77 million through the automatic route (88 industries).

Gwarko Flyover in Lalitpur to Open on June 20: The Gwarko flyover in Lalitpur is set to open for traffic in four days, as its main construction structure has been completed. Prime Minister KP Sharma Oli is scheduled to inaugurate the flyover on June 20. The Department of Roads, under the direction of Minister for Physical Infrastructure and Transport Devendra Dahal, has inspected the site and instructed preparations for vehicular movement.

Birgunj Customs Collects Rs 158.60 billion in 11 Months: The Birgunj Customs Office has collected Rs 158.60 billion in revenue during the first eleven months of the current fiscal year, meeting 79% of its annual target. Chief Customs Administrator Deepak Lamichhane said the May–June collection was the highest so far, boosted by the government’s optimistic budget. Major contributors to the revenue were petroleum products and vehicle imports.

Koshi Province Adds Projects to Budget Overnight to Please Party Workers: The Koshi provincial government has reportedly added numerous small-scale projects to its budget after the Cabinet meeting, primarily to appease ruling party (CPN-UML and Nepali Congress) leaders and workers. According to the Provincial Planning Commission, the additions were made late to include party-recommended minor projects in the finalized budget.

Poor Construction Progress on Mid-Hill Highway’s Starting Section: Construction at the starting point of the National Pride Mid-Hill Highway remains sluggish due to negligence by contractors Roshan Shivashakti JV and Santoshi Shivashakti JV. The highway was supposed to be completed by 2021, but progress has been slow: 27% in the first section, 14% in the second, and 49% in the third section.

Indian Pilgrims to Resume Kailash Mansarovar Journey via Nepal After Six Years: Indian pilgrims will once again travel to Kailash Mansarovar via Nepal after six years. China is preparing to allow Indian pilgrims for the first time in seven years. However, confusion remains, as Nepali travel operators have been asked to deposit a refundable security amount of USD 100,000 with Chinese authorities in Lhasa.

FNCCI Demands Review of Luxury and VAT Taxes on Gold and Precious Stones: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to reconsider the proposed 2% luxury tax and 13% VAT on gold and precious stones in the budget for FY2025/26. FNCCI President Chandra Prasad Dhakal held discussions on Sunday with representatives from the Nepal Gold and Silver Gem and Jewelry Federation and the Federation of Nepal Gold and Silver Dealers’ Association at the FNCCI Secretariat.

Track Opened on Key Road Linking Myagdi and Baglung to Dhorpatan: The road track connecting Dhorpatan with Myagdi and Baglung has been completed. This route, considered a lifeline for Mangala, Malika, and Dhaulagiri rural municipalities, also offers a shorter road connection between Kathmandu/Pokhara and Dhorpatan/Rukum East. Funded by a Rs 50 million allocation from the federal government, the project was executed by the Baglung Road Division Office.

Over 23,000 Kg Ginger from Palpa Exported to Europe: Farmers in Nisdi Rural Municipality–5, Palpa have exported a total of 23,250 kg of raw and dried ginger to Europe this year. Dilmaya Saru, manager of the Social Entrepreneur Women’s Cooperative, stated that 14,560 kg of dried ginger was exported on Sunday. This quantity was processed from approximately 65,000 kg of raw ginger.

Royal Tulip Hotel Debuts in Nepal Under Louvre Hotels Group: Louvre Hotels Group has launched the ‘Royal Tulip’ hotel brand for the first time in Nepal. Located in Gwarko, Lalitpur, the hotel offers some of the largest halls in the country for meetings and conferences.

WorldLink Communications Posts Rs 11.12 billion in Annual Revenue: Internet service provider WorldLink Communications recorded annual business worth Rs 11.12 billion in 2024. In previous years, its revenues were Rs 6.54 billion (2020), Rs 7.95 billion (2021), Rs 9.39 billion (2022), and Rs 10.33 billion (2023), showing consistent growth.

Kumari Bank Opens Sale of 7,881 Promoter Shares: Kumari Bank has opened the sale of 7,881 promoter shares. Any individual or institution can apply to purchase the shares. Interested buyers can apply from June 16 for 35 days at the bank’s head office in Tangal or Kumari Capital’s office in Naxal, Nagpokhari.

Gold and Silver Prices Remain Unchanged in Nepal: The prices of gold and silver remained stable in the domestic market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold continued to trade at Rs 197,500 per tola, the same as Sunday. Likewise, silver was priced at Rs 2,165 per tola.