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.

NEPSE Index Slightly Declines Amid Selling Pressure on Tuesday: On the third trading day of the week, Tuesday, the Nepal Stock Exchange (NEPSE) index showed minimal movement, closing with a slight decline of 0.22 points at 2,600.53. Today’s market saw heightened selling pressure. Throughout the day, shares of 316 scripts from 249 companies were traded. Among them, the prices of 107 companies increased, while 142 saw a decline. On Tuesday, the Nepal Stock Exchange (NEPSE) reported total transactions worth Rs 5.76 billion. Over the course of the day, a total of 13.8 million shares were traded.

Government Revises Budget Clause Amid ‘Take and Pay’ Dispute in Hydropower: Following the controversy over the ‘take and pay’ model in hydropower projects, the government has amended a key clause in the national budget. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Tuesday presented a clarification and a new proposal in the House of Representatives regarding Clause 227 of the budget. According to his revised proposal, the clause now states that Power Purchase Agreements (PPAs) can be signed only with projects whose energy consumption or export is confirmed based on financial risk assessment, and for which the Nepal Electricity Authority (NEA) can guarantee payment liabilities.

NRB Extends Deadline for Repaying Excess Working Capital Loans by Two Years: Borrowers who have taken working capital loans beyond the regulatory limit now have an additional two years to repay them. The Nepal Rastra Bank (NRB) on Monday issued an amendment to its working capital loan guidelines, allowing repayments until mid-July 2027. Previously, the deadline for repaying such excess loans was set for mid-July 2025.

Nepal’s Trade Deficit with Bangladesh and Bhutan Widens Despite Growing Trade: Nepal continues to face a trade deficit with neighboring countries Bangladesh and Bhutan, even as bilateral trade has increased. Due to Nepal’s inability to boost exports, losses have continued to mount. In the first eleven months of the current fiscal year, Nepal recorded a trade deficit of Rs 3.91 billion with Bangladesh and Rs 1.28 billion with Bhutan.

Securities Board Expands Investment Scope for Investment Companies: The Securities Board of Nepal (SEBON) has widened the investment scope for investment companies. Previously, such companies were only allowed to invest in promoter shares of firms in energy, transport, and communication sectors. Now, SEBON has authorized investment companies to also invest in primary shares and purchase shares from the secondary market, while maintaining limitations on promoter shares in specified sectors.

Most Local Governments Present Budgets; KMC Yet to Call Assembly: On Tuesday, most local governments across Nepal presented their budgets for the upcoming fiscal year in municipal or village assemblies. While some municipalities had already presented budgets as per the Intergovernmental Fiscal Arrangement Act, a majority did so today.
However, Kathmandu Metropolitan City (KMC) has not yet called a municipal assembly to present its budget. “There has been no preparation yet. The budget will not be presented today,” said KMC Spokesperson Navin Manandhar.

Gandaki Chief Minister Faces Criticism for Channeling Budget and Aid to Own Constituency: Surendra Raj Pandey, Chief Minister of Gandaki Province, is under fire for diverting budget and aid disproportionately to his home constituency, Gorkha-2(A). Despite ongoing controversy over the Office of the Chief Minister and Council of Ministers funneling financial assistance meant for poor and seriously ill patients predominantly to his home district, Pandey has now also directed significant portions of the provincial budget to the same constituency.

Jagdulla Hydropower Project Contract Halted After PAC Objection: The controversial contract process of the Jagdulla Hydropower Project has been put on hold following a directive from the Public Accounts Committee (PAC) of the House of Representatives on June 6. The PAC had instructed not to proceed with the agreement without clarification on complaints that some contractors involved had submitted fake documents to participate in bidding under Jagadulla Hydropower Company.

Koshi Province Budget Favoritism: Ministers Prioritize Own Districts: In Koshi Province, ministers from coalition parties have been accused of prioritizing their home districts and constituencies during the upcoming FY 2025/26 budget allocation process. From project selection to budget distribution, these ministers have diverted focus away from broader provincial development goals, fueling criticisms of bias and imbalance.

Rs 18.04 billion Worth of Petroleum Imports via Kakarbhitta in 11 Months: In the first eleven months of the current fiscal year2024/25, petroleum imports worth Rs 18.04 billion were recorded through the eastern border point of Kakarbhitta. Imports include petrol, diesel, LPG, aviation fuel (ATF), and kerosene.

Underground Electrification Work Halted in Bharatpur Due to Monsoon: Ongoing underground electrification work in Bharatpur Metropolitan City has been temporarily halted. The Department of Roads has not granted permission to dig roads during the monsoon, leading to a three-month pause in the project. The project is part of the Pokhara–Bharatpur Distribution System Strengthening Initiative under the Nepal Electricity Authority.

Tourist Arrivals Increase at Annapurna Base Camp: The number of tourists visiting Annapurna Base Camp in Annapurna Rural Municipality-4, Narchyang, Myagdi, has increased. Improved hotel facilities and trekking route management have led to the rise in footfall. Annapurna I, known as the oldest climbed 8,000-meter peak in mountaineering history, was first summited on June 3, 1950 by French climber Maurice Herzog, Louis Lachenal, and two Nepali Sherpas.

Orthodox Tea Exports Up by 40.5% in 11 Months: Nepal’s export of orthodox tea surged by 40.5% during the first eleven months of the current fiscal year. With a good harvest this year, tea exports have fared better than the previous year. According to Mechi Customs Office in Kakarbhitta, Jhapa, Nepal exported tea worth Rs 3.86 billion during this period.

Provincial Governments Face Common Issues in Budgeting and Staffing: Common challenges such as budget planning, tax collection, staff recruitment, and unnecessary infrastructure construction persist among provincial governments. In a dialogue program organized by the Center for Federalism and Localization, provincial finance secretaries stated that copying federal government structures has led to redundancy and increased recurrent expenditures.

Koshi Province Business Leaders Demand 50% Cap on Real Estate Loan Ratios: Industrialists and entrepreneurs from Koshi Province have suggested that the loan-to-value (LTV) ratio for housing and real estate loans be allowed to exceed 50%. In a written submission on upcoming monetary policy, the Koshi Chamber of Commerce urged the Nepal Rastra Bank to raise the current cap on the LTV ratio, which limits the proportion of loan against the fair market value of real estate collateral.

Budget and Tree-Felling Delays Disrupt Mahakali Corridor Works: Work on the Mahakali Corridor has been frequently disrupted due to budget shortages and delays in tree-felling permits. This fiscal year, work came to a halt in Baisakh May when the budget was exhausted. With a recent release of Rs 100 million, some sections have resumed track opening and road upgrading. For the next fiscal year, the Mahakali Corridor Project has requested a budget of Rs 1.5 billion to continue development and road improvements.

Hetauda Sub-Metropolitan City Unveils Rs 2.9 billion Budget for FY 2025/26: Hetauda Sub-Metropolitan City has announced a budget of Rs 2.9 billion and 30 million for the fiscal year 2025/26. The budget was presented at Tuesday’s municipal assembly by Deputy Mayor Rajesh Baniya, reflecting a 19% increase from the previous fiscal year.

Nepal Lube Oil Records Rs 890 million Sales in First 9 Months of FY: Nepal Lube Oil, which sells the Gulf brand of lubricants, achieved Rs 890 million in trade during the first nine months of the current fiscal year. In past years, the company posted annual sales of Rs 1.175 billion (2024), Rs 927 million (2023), and Rs 1.245 billion (2022).

 Digital Wallet Khali Introduces Nepal’s First Recurring Deposit Account: For the first time in Nepal’s financial sector, a recurring deposit account can now be opened through a digital wallet. Leading digital wallet Khalti, in collaboration with Manjushree Finance, has launched a new feature called “Smart Deposit”. With this service, Khalti users will be able to regularly deposit a fixed amount from their wallet over a specified period and earn savings at competitive interest rates.

Gold Prices Drop Sharply by Rs 1,700 Per Tola: The price of gold in Nepal decreased significantly on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold price per tola dropped by Rs 1,700, now set at Rs 193,500. On Monday, the price stood at Rs 195,200. Similarly, silver prices also fell by Rs 10 per tola.