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 Dips Slightly by 0.33 Points, Closes at 2600.20: The Nepal Stock Exchange (NEPSE) index dropped by a marginal 0.33 points on Wednesday, settling at 2600.20. This marks another day of minor decline, keeping the market in the red. According to NEPSE, there was no significant fluctuation in total transaction volume. Compared to Tuesday’s turnover of Rs. 5.76 billion, Wednesday saw a slightly higher trading volume of Rs. 5.94 billion.

NRB Governor Poudel Eases Loan Repayment and Restructuring Rules: NRB Governor Biswo Poudel has adopted more flexible monetary policies to ease conditions for the private sector. Borrowers of working capital loans will get extended repayment periods. Small and medium enterprises can now restructure loans up to Rs 20 million, and deadlines for priority-sector lending have also been extended.

Investment Companies Barred from Secondary Market Share Purchases: Investment companies formed to pool public funds for targeted sectoral investments will now be strictly prohibited from buying shares on the secondary market. The Securities Board of Nepal (SEBON) plans to enforce this regulation rigorously by amending previous policies and expanding permissible investment sectors, while barring secondary share purchases.

Banks Increase Deposits in Nepal Rastra Bank Amid Liquidity Crunch: Banks and financial institutions have increased their deposits at Nepal Rastra Bank amid a persistent liquidity crisis. Banks struggling to manage liquidity have been depositing at an interest rate of just 2.99%. As earlier 21-day deposit collections failed to ease the situation, the central bank has introduced 42-day and 63-day deposit collection tools.

Govt Drafts New Aviation Policy 2025 to Replace 19-Year-Old One: The government has drafted a new National Aviation Policy 2025 to replace the 19-year-old aviation framework. The Ministry of Culture, Tourism, and Civil Aviation has released the draft for initial public discussion. The new policy includes provisions to allow individuals or institutions to operate air services for private purposes.

Nepal Receives Rs 60.6 billion in FDI Commitments Over 11 Months: Nepal has received foreign direct investment (FDI) commitments worth Rs 60.6 billion over the past 11 months. According to Industry Department spokesperson Arjunsen Oli, by mid-June in the current fiscal year, Rs 3.86 billion came through the automatic route and Rs 56.74 billion via the approval route.

Ex-Finance Minister Mahat Warns Against Current Bilateral Loan Practices: Former Finance Minister and Nepali Congress lawmaker Dr. Prakash Sharan Mahat has spoken out against Nepal’s current approach to bilateral loans. Speaking at an event in Kathmandu, he said the current mode of acquiring bilateral loans is not beneficial to the country. “The way we are taking bilateral loans, it’s not helping us,” Mahat remarked.

Deadline Extended for Sectoral Lending by Banks: Nepal Rastra Bank has granted more time for banks and financial institutions to meet the minimum requirements for sectoral lending. In an amendment to the Unified Directive 2024 issued on Monday, NRB extended the deadline by one year. Commercial banks are required to allocate at least 15% of their total lending to agriculture and small- and medium-scale industries.

NRB Withdraws Rs 50 billion from Market Again Today: Nepal Rastra Bank (NRB) has withdrawn Rs 50 billion from the market on Wednesday. The move came in response to excessive liquidity held by banks and financial institutions. To manage the surplus liquidity, NRB will use a deposit collection tool for a 63-day term. With the market flooded with cash for a long time, the central bank has been mopping up liquidity at least twice a week.

Bangladesh Power Import from Upper Karnali in Limbo: Bangladesh’s plan to import 500 MW of electricity from Nepal’s Upper Karnali Hydropower Project is now uncertain. Bangladeshi media report that following the government’s decision to suspend all agreements under the Special Power Act, preparations are underway to cancel the deal with the Indian company GMR, which was handling the project.

Govt Sets AED 1,000 Minimum Wage for Nepali Workers in UAE: The Ministry of Labour, Employment, and Social Security has set a minimum wage of AED 1,000 for Nepali workers going to the UAE. Recruiting agencies can no longer send workers at wages lower than this threshold. The employment contract must specify a salary higher than AED 1,000. Demand letters offering less will not be authenticated by the embassy.

Petroleum Imports Generate Highest Revenue at Birgunj Customs: The Birgunj Customs Office collected the highest revenue—Rs 73.18 billion—from petroleum product imports in the first 11 months of fiscal year 2024/25. The office spent Rs 174.09 billion on importing five types of petroleum products during this period. Petroleum contributed 46.43% of the total revenue from the top 20 import items.

No Urea Shortage This Year, Say Suppliers: Unlike previous years, there will be no shortage of chemical fertilizers for paddy cultivation this year, say officials. According to the Madhesh Province offices of Agriculture Inputs Company Limited and Salt Trading Corporation, chemical fertilizers are arriving steadily through the Birgunj border and are sufficiently stocked by suppliers.

41% of Non-Performing Loans Fall Between Rs 10–100 million: As per data backing Governor Biswo Nath Poudel statements, 41% of total non-performing loans (NPLs) fall within the Rs 10 million to Rs 100 million range. By April 13, 2025, commercial banks had issued loans totaling Rs 4.911 trillion. Of this, loans between Rs 10–100 million comprised 21.1%, while total NPLs reached Rs 248 billion or 5.05% of total loans.

Korean Firm Proposes Green Hydrogen Project in Nepal: Korean company GPhilos Ltd. has submitted an investment proposal to Nepal’s Investment Board for establishing a green hydrogen production facility and a fuel cell plant. According to Board spokesperson Pradyumna Prasad Upadhyaya, GPhilos aims to build a pilot plant with a capacity of 20 megawatts for green hydrogen and install fuel cell technology in Nepal.

Kathmandu Fails to Present Budget on Time, Unlike Other Metros: Among the six metropolitan cities in Nepal, five have presented their budgets for the fiscal year 2025/26 on the scheduled date (June 24). However, Kathmandu Metropolitan City failed to do so. The Budget Formulation and Program Committee, in an informal meeting on Tuesday night, drew Mayor Balen Shah’s attention, urging him to take the issue seriously and not delay further.

FNCCI President Urges South African Investment in Tourism Infrastructure: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), met with Prof. Anil Sooklal, South Africa’s High Commissioner to India and Ambassador to Nepal, on Tuesday. During the meeting at the FNCCI Secretariat, Dhakal highlighted Nepal’s potential, particularly in tourism infrastructure, and urged the ambassador to help promote South African investment in Nepal.

Cement and Steel Prices Drop in Nepali Market: The prices of cement and steel rods have recently decreased in the Nepali market. According to the Department of Commerce, Supplies and Consumer Protection, the price of cement has dropped by more than Rs 50 per sack and steel rods by up to Rs 5 per kilogram. The department’s Director General, Kumar Prasad Dahal, said that reduced load-shedding at factories and increased demand contributed to the price drop.

Egg Prices Surge as Heat Reduces Production: With the rising summer heat, egg production has declined, resulting in increased demand and higher prices. Compared to previous years, production has dropped by about 25%, which has led to the current price hike.

Govt Introduces High-Breed Fish Farming Plan to Reduce Imports: To reduce rising fish imports, the government has launched a plan to develop high-breed varieties of fish in Nepal. The Central Fish Promotion and Conservation Centre in Balaju has imported 4,000 pure Pangasius fingerlings, a fast-growing and consumer-preferred species, which will be bred and distributed across the country.

Women Farmers in Palpa Turn Ginger into a Success Story: Women farmers in Galda, Nisdi-5 in Palpa have transformed ginger farming into a commercial success. Previously limited by poor market access and middlemen, things changed after the establishment of the Galda Social Entrepreneur Women’s Cooperative in 2016. Now, ginger is processed by machines and exported to Europe. Since 2021, the cooperative has purchased and exported ginger: 805 kg at Rs 350/kg in the first year, 4,460 kg at Rs 750/kg the next, and 14,560 kg at Rs 493.9/kg so far this year.

Gold Price Falls by Rs 1,500 Per Tola: The price of gold fell on Wednesday in Nepal. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold was priced at Rs 192,000 per tola on Wednesday. On Tuesday, the price was Rs 193,500 per tola. Compared to the previous day, Wednesday’s rate is Rs 1,500 lower. Meanwhile, silver is priced at Rs 2,140 per tola.