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:

NEPSE Extends Losing Streak, Falls 8.50 Points as Turnover Slumps

The Nepal Stock Exchange (NEPSE) continued its downward trend on Thursday, shedding 8.50 points (0.31%) to close at 2,651.52. The benchmark has now declined for four consecutive trading sessions this week. Market turnover fell sharply to Rs 2.84 billion from over Rs 4.3 billion earlier in the week. Of 338 traded companies, 172 posted losses, 83 gained, and 19 remained unchanged. Manufacturing & Processing was the only sector in positive territory (+0.14%), while Trading recorded the biggest drop (-1.96%). Taksar Pikhukhola and Yambaling Hydropower gained 14.99%, while Bhujung Hydropower lost 11.03%.

President Paudel Authenticates Development Finance Bill, 2026

President Ramchandra Paudel has authenticated the ‘Alternative Development Finance Mobilization Bill, 2026’, following its passage by the House of Representatives of the Federal Parliament. According to the Office of the President, Spokesperson Riteshkumar Shakya said the bill was authenticated on Thursday under Article 113(2) of the Constitution of Nepal. With the President’s approval, the bill has now been enacted into law as per constitutional provisions that require presidential authentication after parliamentary endorsement. The Office of the President issued a press release confirming the decision.

NRB Allows Interest Capitalization for All Long-Term Projects

Nepal Rastra Bank has amended its unified directives to allow banks and financial institutions to capitalize interest on loans for all long-term projects until they begin generating cash flow from commercial operations. The provision applies to projects requiring at least two years to start production and expands a facility previously limited to sectors such as hydropower and tourism. Banks must adopt board-approved procedures and maintain separate records for capitalized interest. The central bank has also introduced concessions for projects delayed by transmission infrastructure constraints or natural disasters, easing provisioning requirements in such cases.

Banks Allowed to Temporarily Freeze Accounts on Verbal Law-Enforcement Requests

Nepal Rastra Bank (NRB) has introduced a new provision allowing bank accounts to be temporarily frozen based on verbal requests from investigating officers in cases linked to suspected financial crimes. The provision was introduced through amendments to the Unified Directives, 2025, applicable to ‘A’, ‘B’, and ‘C’ class banks and financial institutions. Under the revised rule, institutions must remain available 24/7 to act on verbal or written requests from law enforcement for short-term freezing of suspicious accounts. Banks are also required to publish dedicated contact numbers for such coordination. The directive further instructs financial institutions to promptly provide requested account information to investigating authorities to support faster action against financial crimes.

Nepali Embassy in Oman Hosts Program to Boost Trade and Investment Ties

The Nepali Embassy in Oman organized a special program on “Economic Partnership for Mutual Prosperity” to promote trade, investment, tourism, and employment opportunities between the two countries. Held in Muscat, the event brought together over 100 business leaders, entrepreneurs, media representatives, and community members. Nepali Ambassador Dornath Aryal highlighted Nepal’s investment potential and strategic location between India and China, inviting Omani investors to explore opportunities in the country. The program also featured discussions on Omani labor regulations, tourism promotion, and networking sessions aimed at strengthening business and economic cooperation between Nepal and Oman.

CIT, Tamakoshi Rural Municipality Sign MoU to Launch Citizen Pension Scheme

A memorandum of understanding has been signed between the Citizen Investment Trust (CIT) and Tamakoshi Rural Municipality of Dolakha to operate the Citizen Pension Scheme. The agreement was signed by CIT Acting Executive Director Shobha Shrestha Subedi and Rural Municipality Chair Pratap KC. Under the scheme, both the local government and participating workers will contribute Rs 500 each per month to the Labor Welfare Fund. Participants will receive pension benefits after the age of 60. Provisions include spousal pension benefits, inheritance rights for legal heirs, and the option to borrow up to 80 percent of accumulated savings after five years of participation.

Bird Flu Outbreak Hits Bhaktapur, Over 48,000 Chickens Culled

An outbreak of avian influenza has been confirmed in Bhaktapur District, leading to the culling of more than 48,000 chickens across affected farms. The virus was detected in poultry operations in Changunarayan and Suryabinayak municipalities, where 38,500 and over 9,000 chickens were destroyed respectively. Authorities said the culling was carried out to prevent further spread of the disease after infections were confirmed in multiple wards. The outbreak has raised concern among local poultry farmers and triggered containment measures in the district.

Ilam Tea Factories Resume Operations After Government Assurances

Tea industries in Suryodaya, Ilam, have resumed operations after shutting down earlier this month due to Indian restrictions on Nepali tea exports. The 53 factories, closed since June 15, reopened following assurances from Suryodaya Municipality and the federal government to address the crisis. Industry representatives said commitments to provide warehouse space and efforts by a federal task force to find long-term solutions encouraged the decision. Producers have also pledged to focus on high-quality, pesticide-free orthodox tea that meets international standards while exploring alternative export markets beyond India.

Budget Deadlock Forces Indefinite Adjournment of Lumbini Assembly Session

Budget disagreements have brought proceedings of the Lumbini Province Assembly to a halt, with the scheduled Thursday meeting postponed indefinitely, deepening uncertainty over the province’s fiscal plan for 2026/27. The Secretariat said the session, set for 11 am, was adjourned under the Speaker’s instructions in line with assembly regulations and will remain suspended until further notice. Lawmakers from both ruling and opposition parties have been protesting over dissatisfaction with the proposed budget and annual programs, demanding revisions to the “Red Book.” Despite ongoing political dialogue, no consensus has been reached, stalling legislative business tied to provincial spending priorities.

Paudel Questions High Fuel Prices Despite Global Oil Price Drop

General Secretary of Nepali Congress Pradip Paudel has criticized the government for failing to reduce fuel prices in Nepal despite a sharp fall in global crude oil rates. He said international prices have dropped significantly, yet consumers continue to pay high domestic rates, raising concerns over fairness and governance. Paudel accused the Nepal Oil Corporation of using technical explanations to delay price cuts and called the practice non-transparent. He demanded full implementation of the automatic fuel pricing system, arguing that consumers should benefit equally when global prices decline, just as they do when prices rise.

BP Highway Traffic to Shift to Newly Reconstructed Tracks

Authorities are preparing to divert traffic onto newly constructed elevated tracks along the damaged BP Highway within days ahead of the monsoon season. The Bhakundebesi–Nepalthok section was heavily damaged by floods and landslides in 2024, repeatedly disrupting travel. Road crews have completed graveling and boulder reinforcement to reduce washout risks, while a night traffic ban from 5:00 PM to 5:00 AM remains in place for safety. The Rs 8.5 billion project will upgrade the 29.5 km stretch into a two-lane highway. JICA is also rebuilding a 3.2 km section under a separate grant, with traffic expected to shift by late June 2026.

Traffic Violations in Kathmandu Generate Over Rs 1.9 Million in Fines

Traffic police in Kathmandu Valley booked and fined 2,519 vehicles in the past 24 hours, collecting over Rs 1.93 million in penalties. According to the Kathmandu Valley Traffic Police Office, 92 cases involved drunk driving, 163 related to improper ride-sharing, 99 traffic signal violations, and 115 cases of overspeeding. Authorities also recorded 109 lane discipline violations and 100 cases of prohibited honking. In addition, 19 vehicles were fined for excessive smoke emissions, while 1,822 drivers and riders were penalized for various other traffic offences.

Birgunj Customs Collects Rs 221.78 Billion in 11 Months

The Birgunj Customs Office collected Rs 221.78 billion in revenue during the first 11 months of the current fiscal year, achieving 89 percent of its Rs 249.19 billion target. Information Officer Udaya Singh Bista said the performance was encouraging, noting a 9 percent year-on-year increase of Rs 17.97 billion from the Rs 203.81 billion collected in the same period last year. Imports through the Birgunj border reached Rs 890.07 billion, up from Rs 770 billion, while exports rose modestly to Rs 99.66 billion from Rs 96.72 billion.

Nepal Launches First Humanless Automated Substation in Leting

The Nepal Electricity Authority has brought into operation the country’s first humanless automated substation in Letang. The 33/11 kV, 8 MVA substation was built under the Koshi Province office in Biratnagar and officially commissioned after successful testing and charging. Developed at a cost of around Rs 100 million, the substation operates on an auto recloser and SCADA-based control system. It is expected to improve voltage stability, reduce technical losses and power interruptions, and increase revenue collection. The project is expected to directly benefit thousands of consumers in Letang and Belbari municipalities.

Rs 250 Million Allocated for Tarigaun Airport Expansion

The government has allocated Rs 250 million for the upgrade of Tarigaun Airport under the upcoming fiscal year budget to support runway expansion and infrastructure development. The project aims to extend the runway to 2,500 meters, allowing larger aircraft operations. Currently, the 750-metre runway in Dang District only supports small 19-seater planes with irregular flights, forcing passengers to rely on other airports. The expansion is part of a long-term plan to improve regional air connectivity.

Phalebas Municipality Provides 50% Subsidy on Beehives to Boost Farmers’ Income

Phalebas Municipality has distributed 250 beehives to 11 commercial beekeeping farmers under a 50 percent subsidy scheme aimed at increasing agricultural income and promoting commercial apiculture. The hives were provided through the municipality’s “Commercial Beekeeping Promotion Program,” targeting farmers with at least 25 hives. Each hive, priced at Rs 4,000, was equally shared between the municipality and farmers. A total of Rs 600,000 was allocated for the program in the current fiscal year. Officials said the initiative is designed to make beekeeping a sustainable income source while also improving crop productivity through pollination, with plans to continue technical support and training in the coming years.

Rukum West Local Levels Unveil Over Rs 3.62 Billion Budget for FY 2026/27

All six local levels in Rukum West have announced a combined budget of Rs 3.62 billion for the upcoming Fiscal Year 2026/27. Among them, Musikot Municipality presented the largest allocation of Rs 737.3 million, followed by Aathbiskot Municipality with Rs 713.7 million and Chaurjahari Municipality with Rs 572.3 million. Among rural municipalities, Sanibheri, Triveni, and Banfikot introduced budgets of Rs 550.8 million, Rs 549.4 million, and Rs 503.4 million respectively. The budgets prioritize education, health, agriculture, infrastructure, drinking water, job creation, tourism promotion, and social security, with a major share allocated to current expenditures over capital spending.

Consumer Awareness Drive Aims to Curb Market Fraud and Improve Buying Practices

A consumer education and awareness program has been launched at Hope International Academy in Nepalgunj to promote healthy lifestyles and informed consumer behavior among students. The program was jointly organized by the Department of Cottage and Small Industries, Banke, and the Consumer Interest Protection Forum Nepal. Speakers highlighted the importance of educating students on consumer rights, responsibilities, and protection laws to reduce fraud, misleading advertisements, and substandard goods in the market. Legal experts also shared information on compensation mechanisms and grievance procedures. The program further emphasized food hygiene, balanced diet, and prevention of non-communicable diseases, with 77 students from classes 9 and 10 participating.

Niranjan Shrestha Elected President of Dairy Industries Association

Niranjan Shrestha, operator of Sujal Dairy Pvt. Ltd., Pokhara, has been unanimously elected president of the Dairy Industries Association at its 17th Annual General Meeting in Kathmandu. The meeting formed an 11-member executive committee for a two-year term. Bishwo Raj Basnet was elected vice president, Suraj Sapkota general secretary, and Kul Prasad Ghimire treasurer. Shrestha succeeds Raj Kumar Dahal, the outgoing president. The newly elected committee also includes representatives from several leading dairy enterprises across the country.

Gold and Silver Prices Drop in Nepali Market

Gold and silver prices fell sharply in the Nepali market today, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold dropped by Rs 5,200 per tola to Rs 278,300, down from Rs 283,500 on Wednesday. Similarly, silver prices also declined, falling from Rs 4,485 per tola to Rs 4,235 per tola on Thursday. Traders said both metals saw a noticeable correction in domestic trading compared to the previous day’s rates.