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.

Hydropower Subsector Shares Rise Despite NEPSE Index Falling 4.45% This Week: While the NEPSE index dropped by 4.45%, the hydropower subsector index increased by 3.82 points this week. Hydropower companies led in share price rises and trading volume. On Thursday, Green Development Bank shares rose by 9.18%, and Saptakoshi Development Bank shares increased by 9%. Varun Hydropower, People’s Hydropower, and Super Madi Hydropower shares also gained significantly. The top five companies by trading volume were mainly hydropower firms.

Government Disaster Relief Fund Stands at NPR 4.65 billion: According to the National Disaster Risk Reduction and Management Authority, the government has NPR 4.65 billion available in various funds for rescue and relief efforts during natural disasters. This includes NPR 1.89 billion in the Prime Minister’s Disaster Relief Fund, NPR 1.27 billion in the Central Disaster Management Fund, NPR 0.79 billion in provincial disaster funds, and NPR 0.69 billion in district disaster funds.

Negligence in Maintenance of Cargo Inspection Equipment at TIA Halts Operations: Cargo import-export operations at Tribhuvan International Airport are near suspension due to poor maintenance of inspection equipment. The Nepal Transport and Warehouse Ltd. is responsible for operating and maintaining X-ray scanners, weighing machines, and printing devices used during cargo clearance. Long delays in repairing these broken machines have frustrated cargo operators, threatening to halt cargo clearance entirely.

India Makes BIS Certification Mandatory for Sanitary Pads and Diapers Exported from Nepal: India has mandated Bureau of Indian Standards (BIS) certification for sanitary pads and diapers exported from Nepal. Additionally, only products with mandatory trademarks and sealed packaging are allowed entry into India. Nepalese manufacturers report that India does not allow exports of loosely packaged pads and diapers and imposes strict import regulations, but Nepal has yet to formulate policies to address import controls.

Energy Minister Deepak Khadka Announces Preparation for 220 kV Transmission Line with China: Energy, Water Resources, and Irrigation Minister Deepak Khadka stated that preparations are underway to build a 220 kV transmission line connecting Rasuwa Gadhi–Chilime–Jilong–Kerung with China. He discussed Nepal’s energy sector achievements and ongoing power trade agreements with India and Bangladesh at the fifth SCO Energy Ministers’ meeting in Ningbo, Zhejiang Province, China.

Nepal’s Poor Track Record in Mineral Exploration and Extraction: Nepal lacks the capacity for mineral exploration and extraction, and there is little market research for mined products. Juddha Bahadur Gurung, acting chair of the National Natural Resources and Fiscal Commission, says state prioritization of resource utilization could boost Dailekh’s economy, especially with promising natural gas reserves discovered there. However, further government investment is necessary to integrate these resources into Nepal’s economic and social fabric.

Government to Privatize Four State-Owned Industries, Asset Evaluation Underway:The government plans to privatize Janakpur Cigarette Factory, Nepal Metal Company, Nepal Orient Magnesite Pvt. Ltd., and Butwal Textile Factory. The Ministry of Finance has publicly called for consultants to study the physical, financial, technical, legal, and commercial aspects of these industries and evaluate their assets and liabilities accurately.

Life and Non-Life Insurance Companies’ Investments in Bonds Continue to Grow: Investment in bonds by Nepal’s life and non-life insurance companies has steadily increased over the past five years. Life insurance companies have been particularly active, investing NPR 2.573 billion in bonds in fiscal year2019/20, which grew to NPR 7.558 billion by2023/24, according to the Insurance Authority.

Government Pledges Rice Self-Sufficiency Within Two Years: Finance Minister Bishnu Paudel announced plans to make Nepal self-reliant in rice production within two years during the upcoming budget presentation. Despite NPR billions spent on rice imports due to production shortfalls, the government aims to meet domestic demand by boosting paddy cultivation. In fiscal year2024/25, 1.42 million hectares of paddy produced nearly 5.96 million tons, still short by 750,000 tons for self-sufficiency.

Tatopani Border Limited to Imports Only, No Exports to China This Year: Tatopani border, Nepal’s oldest trade point with China in Sindhupalchok, has been restricted to imports only this fiscal year. In the first 11 months, no exports were recorded through Tatopani, while imports reached NPR 4.689 billion. Currently, Rasuwa Gadhi border handles both imports and exports between Nepal and China.

Coalition Partners Show Dissatisfaction Over Provincial Budgets: In provinces like Koshi, Madhesh, Bagmati, and Lumbini, ruling coalition partners have expressed strong dissatisfaction with budget proposals for the upcoming fiscal year. In Koshi Province, lawmakers allied with Congress leader Dr. Shekhar Koirala have criticized the budget for imbalance, with some threatening to resign and calling for ministers’ withdrawal.

Bagmati Province Allocates Budget for New Social Development Projects at Fiscal Year End: As the fiscal year closes, the Bagmati Province government has allocated budgets for nearly a dozen new projects under the Social Development Ministry. The Social Development Office in Kavrepalanchok will implement nine projects focused on Kavrepalanchok, Sindhupalchok, Dolakha, and Ramechhap districts, aiming to complete work within the current fiscal year 2024/25.

Tea Exports Improve from Kakarbbhitta Customs Point: Tea exports through the Kakarbhitta customs point have increased by 40.5% in the first 11 months of the current fiscal year. The Mechi Customs Office reports that tea worth NPR 386.64 crore was exported, compared to NPR 275.28 crore in the same period of the previous fiscal year 2023/24.

Morang Industrial Trade Association Proposes Increased Loan Limits and Reduced Transfer Fees to NRB: The Morang Industrial Trade Association has recommended that Nepal Rastra Bank increase loan limits for share collateral loans, house and land appraisal loans, and small and medium enterprises. They also suggested removing transfer fees on digital transactions to foster industrial and economic growth in the upcoming fiscal year 2025/26.

Commercial Akbare Chili Farming Expands, But Farmers Worry About Market: Farmers in hilly areas of Katari Municipality, Udayapur, have shifted from staple crops to commercial Akbare chili farming. Last year, around 200 households earned NPR 200,000 to 300,000 each from chili farming. This year, over 2,000 households across two wards are involved, but concerns about market access and sales persist.

Dairy Development Institution’s Attariya Office Locked Down Amid Relocation Protests: The Dairy Development Institution’s project office in Attariya has been locked for a month after locals protested the planned relocation to Dhangadhi on May 22. Due to the lockdown, economic and administrative activities have halted. DDC Attariya Chief Niranjan Bhattarai said milk payments to farmers have been delayed, and production has been impacted.

People’s Power to Issue Rights Shares Worth Rs 316 million: People’s Power Limited is set to issue rights shares. The company has decided to open the rights share offering on Asar 22 (July 6, 2025). It plans to issue 3.163 million units of rights shares at a face value of Rs 100 per share, equivalent to 50% of its current paid-up capital, totaling Rs 316.3 million. The company is issuing rights shares in the ratio of 10:5, meaning shareholders will be eligible to purchase 5 rights shares for every 10 shares they currently hold. At present, the company’s paid-up capital stands at Rs 632.6 million.

Nepal Welhope Agri-Tech’s Trade Declines Over Three Consecutive Years: Nepal Welhope Agri-Tech Pvt. Ltd., a joint venture between Vaidya Group and Welhope Group, conducted business worth approximately NPR 4.87 billion in fiscal year 2024. However, trade has steadily declined from NPR 5.65 billion in 2022 and NPR 5.22 billion in 2023. The company recorded a 7% decrease in business in 2024 compared to the previous year.

Gold Price Drops by Rs 2,900 per Tola in Nepali Market: The price of gold in the Nepali market fell by Rs 2,900 per tola on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The rate for hallmark gold, which stood at Rs 192,300 per tola on Thursday, dropped to Rs 189,400 per tola on Friday. Similarly, the price of silver decreased by Rs 10 per tola. It now stands at Rs 2,165 per tola, compared to Rs 2,175 per tola on Thursday.