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.

PM Oli Briefs Parliament on Spain Visit for UN Development Conference:
Prime Minister KP Sharma Oli briefed the federal parliament on his official visit to Spain, starting today. Leading a 21-member delegation, he will attend the Fourth UN International Conference on Financing for Development (FfD-4) in Seville from June 30 to July 3. Invited by UN Secretary-General Antonio Guterres and Spanish PM Pedro Sanchez, Oli will address the conference as Chair of the Least Developed Countries Coordination Bureau. He will also meet global leaders, attend events, and promote Nepal-Spain business ties. The visit includes meetings with Spain’s King and Real Madrid officials, and ends with a return on July 4 via Doha.

Nine Months After BP Highway Collapse, Government Inaction Hurts Lives and Economy:
Nine months after floods destroyed a 12-km stretch of the vital BP Highway at Roshi, the government has yet to restore full connectivity, leaving thousands stranded and businesses devastated. The road, built with Japanese aid and crucial for linking eastern Tarai with midhill districts, remains unrepaired, impacting trade, travel, and local economies. Only a temporary diversion—unsafe during rains—has been constructed. Despite repeated appeals from lawmakers and local communities, no budget has been allocated for repairs. The delay reflects poorly on a government accused of inaction, risking further damage during the ongoing monsoon and deepening regional economic woes.

Over Rs 10 Billion in Tax Evasion and Forex Misuse Cases Filed in 10 Months: Revenue Investigation Department:
Nepal’s Department of Revenue Investigation (DRI) has filed cases worth over Rs 10 billion in tax evasion and foreign currency misuse across High and District Courts in the past 10 months. A total of 321 individuals are implicated, with jail terms of up to 5 years demanded. Major tax evasion involved smuggling of e-cigarettes, gold, alcohol, and clothing. Nepal Can Move Pvt. Ltd’s Rs 1.37 billion evasion case is the largest. Similarly, 161 people were sued for foreign currency misuse, including a record seizure of Rs 250 million in Euros and USD. DRI DG Chandi Ghimire warns of growing challenges from online-based financial misconduct.

Consumer Court Orders Over Rs 259 Million Compensation from Three Major Hospitals for Medical Negligence:
Nepal’s Consumer Court has ordered three major hospitals—Grandi City Hospital, Om Hospital, and Himal Hospital—and involved doctors to pay a total of Rs 259 million in compensation in three separate medical negligence cases within one month. Om Hospital must pay Rs 5.7 million in a case involving an elderly patient’s death due to misdiagnosis. Himal Hospital and a pediatrician were fined Rs 145 million after a toddler died due to negligent care. In the third case, Grandi Hospital and a doctor were ordered to pay Rs 5.7 million for surgical negligence. Victims may appeal to the High Court if unsatisfied.

House of Representatives Passes Finance Bill 2082 with Focus on Tax Stability and Investment Promotion:
Nepal’s House of Representatives on Saturday passed the Finance Bill 2082 by majority vote, following a proposal by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel. The bill aims to ensure policy stability in taxation, broaden the tax base, curb revenue leakage, and bring the informal economy under formal taxation. Addressing amendment discussions, Paudel emphasized that frequent tax rate changes discourage investment and hurt businesses. The bill includes selective tax concessions to encourage production and investment. While maintaining tax policy consistency, it also adjusts duties on harmful goods like alcohol and tobacco and removes the provision for advance income tax.

Government Forms Long-Overdue Cooperative Loan Recovery Tribunal Amid Rising Sector Crisis:
After an eight-year delay in implementing the Cooperative Act 2074, the Government of Nepal has finally formed the Cooperative Loan Recovery Tribunal to address growing financial disputes in the cooperative sector. The decision was made during Friday’s Cabinet meeting. The tribunal will be chaired by Kritibahadur Basnet, with Basant Parajuli and Govinda Sharma Gaire appointed as members. This move follows mounting pressure due to increasing loan defaults and legal gridlocks in cooperatives. The tribunal aims to streamline and strengthen debt recovery processes under the Ministry of Land Management, Cooperatives, and Poverty Alleviation’s proposal.

Over 4,800 Police Officers Quit in Five Years Amid Growing Foreign Migration Trend:
The rising trend of Nepalis seeking opportunities abroad is now impacting government jobs, with an alarming number of civil servants, including police officers, leaving their positions. In the past five fiscal years, 4,842 Nepal Police personnel have voluntarily resigned—exceeding those who left due to mandatory retirement. Low pay, lack of career growth, and better prospects abroad are driving this shift, particularly among lower-ranked officers like constables and corporals. Despite years of costly training, many officers leave after qualifying for pensions. In FY 2081/82 alone, 2,216 officers resigned—a record high. Police officials warn the trend is accelerating without urgent reforms in pay and benefits.

End of Fiscal Year Brings Stress and Long Hours for Bankers Amidst Busy Loan Recovery Season:
As the planting season begins in Nepal with farmers busy in fields, bankers face mounting stress due to fiscal year-end loan recovery pressures. Bank branch managers, loan officers, and accountants work long hours to manage loan collections, provisioning, classification, and reporting. Many borrowers delay payments, avoid calls, and disappear, making loan recovery challenging during this critical period. A viral TikTok video by a banker highlights their daily struggles and frustration. Microfinance and cooperative staff share similar difficulties. The month of Ashad demands extended work hours, sacrifices in personal life, and relentless recovery efforts, often straining bankers’ mental and family well-being.

Rising Non-Performing Loans and Local Government Hurdles Challenge Nepal’s Banking Sector:
Nepal’s banks face growing pressure as non-performing loans (NPLs) surge to Rs 2.9 trillion, increasing from Rs 1.94 trillion in the previous fiscal year, pushing the NPL ratio to 5.24%. The central bank raised the acceptable NPL threshold from 5% to 8% in March amid rising bad debts. Banks struggle to recover loans as local governments hinder the mandatory approval process for auctioning collateral assets, delaying recovery efforts. Political influence and local pressure cause refusals in issuing necessary recommendations, creating legal bottlenecks. This growing obstacle jeopardizes banks’ financial health and overall economic stability.

Government Moves to Privatize Four State-Owned Industries:
The Government of Nepal has begun the process to privatize four dormant state-owned industries by initiating Due Diligence Audits (DDA). The Ministry of Finance has invited proposals to select a consultant for this task. The industries in question are Nepal Metal Company, Nepal Orient Magnesite, Butwal Spinning Mills, and Janakpur Cigarette Factory—all inactive for years. The audit will assess financial, technical, legal, and physical aspects, including asset valuation, liabilities, and branding. The consultant, to be selected competitively, must submit a final report within 56 days. This marks the government’s step toward reviving these industries through private sector participation.

Surge in Property Insurance Signals Shift in Nepal’s Non-Life Insurance Market:
Property insurance is gaining momentum in Nepal’s non-life insurance sector, traditionally dominated by motor insurance. In the first 11 months of FY 2080/81, non-life insurers collected Rs. 10.13 billion in property insurance premiums—24.4% of their total business—up 10.81% from the previous year. Meanwhile, motor insurance still leads with Rs. 11.74 billion (29.44%). The rise in property coverage follows increased damage claims from floods, landslides, and riots. Insurers have paid out over Rs. 3.44 billion in property claims. With over 1,787 claims filed, property insurance is proving vital for protecting homes, buildings, and assets against natural disasters and accidents, boosting awareness and demand.

Gandaki Province Approves Rs 3.19 Billion Budget for FY 2025/26 with Focus on Development:
The Gandaki Province government secured majority approval for a Rs 3.19 billion budget for Fiscal Year 2025/26 in the Provincial Assembly. Passed after detailed discussions and responses by Chief Minister Surendra Raj Pandey and ministers, the budget prioritizes development and infrastructure. Significant allocations were made for Kaski, the provincial and tourism capital, and Gorkha, due to ongoing project liabilities. While the policy discourages funding physical infrastructure projects under Rs 5 million, some smaller projects received funds owing to existing commitments. Chief Minister Pandey highlighted the importance of securing proper financing before project selection to ensure fiscal discipline and effective development across the province.

Nepal Showcases Investment Potential at SPIEF 2025, Engages Top Russian Institutions:
Nepal’s participation in the 2025 St. Petersburg International Economic Forum (SPIEF) marked a major diplomatic and economic milestone. Led by Investment Board Nepal (IBN) CEO Sushil Gyewali, the delegation held strategic meetings with major Russian institutions such as Russian Railways, RusHydro, and Sberbank, focusing on investment in hydropower, infrastructure, and natural resource development. The team highlighted Nepal’s improved investment climate, including tax incentives and streamlined services. Russian stakeholders expressed strong interest in collaboration. With over 24,200 delegates from 144 countries, SPIEF provided Nepal global exposure. Russia invited a larger Nepali delegation for 2026, reaffirming commitment to deepening bilateral economic ties.

Lawmakers Urge Swift Disaster Relief, Coordination, and Justice Amid Monsoon Challenges:
In today’s House of Representatives meeting, lawmakers called for immediate rescue, compensation, and better coordination amid widespread monsoon-related disasters. Arjun Narsing KC highlighted a death in Nuwakot due to flooding and urged aid for victims. MPs Bimala Subedi and Hit Bahadur Tamang stressed inter-governmental coordination and compensation for losses in agriculture and livestock. Ramhari Khatiwada criticized haphazard construction worsening landslide impacts. Madhav Sapkota condemned the rape and murder of a 12-year-old in Sindhupalchowk, demanding justice. Prakash Jwala raised concerns about illegal deployment of security forces. Lawmakers also addressed issues in education and demanded investigations into suspicious deaths.

Nepal Accelerates Data Center and Cloud Service Registration Amid Digital Infrastructure Boom:
Following the release of the “Data Center and Cloud Service Directive 2081” by Nepal’s Ministry of Communication, the number of companies registering as data center and cloud service providers has surged. Since the directive’s issuance on Magh 15, firms like Ncell, AccessWorld, and Silver Lining have registered, with others in the pipeline. The directive mandates all operating data centers to register within six months, introduces tiered classifications, and requires annual audits and updates. Authorities say this move ensures secure, reliable, and regulated digital infrastructure as Nepal undergoes rapid digitalization. Private sector investment in billion-rupee data centers is also rising significantly.

Nepal to Launch Diploma in Labour Studies, Finalize National Migration Policy Amid Focus on Skilled Workforce:
Labour Minister Sarat Singh Bhandari has emphasized the urgent need to develop a tech-savvy, skilled workforce to meet emerging global employment trends. Speaking at an MoU signing between the Local Development Training Academy, Foreign Employment Board, and Helvetas Nepal, Bhandari announced plans to introduce a Diploma in Labour Studies in collaboration with Kathmandu University. He also revealed that Nepal’s first National Migration Policy is nearing finalization. Highlighting the digitalization of services through 753 Employment Service Centres, he stressed the importance of bridging training gaps. The agreement aims to boost capacity in labour, employment, and migration with continued Swiss support.

NEPSE Declines 33.17 Points Amid Fiscal Year-End Investor Caution:
Nepal Stock Exchange (NEPSE) declined by 33.17 points last week, closing at 2,595.74 as investors grew cautious ahead of the fiscal year-end. The market fluctuated between 2,594.6 and 2,631.55 points during the week. A sharp drop of 32.93 points on Sunday set a negative tone, followed by minor gains and stability midweek. The hotels and tourism sector faced the steepest index fall of 3.68 percent, while the trading group saw a slight increase. Dordi Khola Jal Bidyut lost 15.51 percent, and Panchakanya Mai Hydropower gained 17.16 percent. Total turnover dropped 33.28 percent to Rs 35.09 billion, with market capitalization falling by Rs 55 billion.

Barun Hydropower to Issue 100% Right Shares Worth Rs 53.58 Crores:
Barun Hydropower Company Limited (BARUN) has announced the issuance of 100% right shares to its existing shareholders. The offer will open from Ashad 31 to Shrawan 19, 2082, allowing shareholders to apply in a 1:1 ratio. The company plans to issue 53,58,150 right shares worth Rs 53.58 crores, doubling its paid-up capital from Rs 53.58 crores to Rs 1.07 arba. RBB Merchant Banking Limited has been appointed as the issue manager. The book closure date is Jestha 22, 2082—only shareholders holding shares before this date are eligible to apply for the right shares.

People’s Power to Issue 50% Right Shares Worth Rs 31.63 Crores:
People’s Power Limited (PPL) has announced the issuance of 50% right shares to its existing shareholders. The rights offering, in a 1:0.5 ratio, will be open from Ashad 22 to Shrawan 11, 2082. The company plans to issue 31,63,000 units of right shares worth Rs 31.63 crores. With this, the current paid-up capital of Rs 63.26 crores will increase to Rs 94.89 crores. Prabhu Capital Limited has been appointed as the issue manager for the offering. The book closure date is Ashad 2, 2082, and only shareholders who held shares before that date are eligible to apply.

Endangered Bankariya Community in Makawanpur Sees Lifestyle Change Amid Land Rights Challenges:
The endangered Bankariya indigenous community in Makawanpur’s Manahari Rural Municipality is witnessing improved living standards, transitioning from makeshift shelters to brick and cement houses. Empowered by education, women-led soap-making enterprises using local herbs, and social security allowances, many community members have become entrepreneurs. However, the community faces critical challenges due to expired temporary land-ownership papers provided in 2005, leaving them without formal land rights. This legal uncertainty hampers business registration and threatens their settlement stability. With 93 people across 25 households, the Bankariyas seek permanent collective land ownership and better access to promised social services, highlighting ongoing struggles despite positive economic strides.

Ashok Shahi Pioneers Commercial Hornet Farming in Myagdi’s Beni Municipality:
Ashok Shahi from Jamunakharka, Beni Municipality-6, Myagdi, is successfully commercializing hornet farming on his Rahuwada farm. Starting with 11 hornet nests collected from nearby forests, Shahi and his wife Geeta have established a sustainable enterprise by relocating nests similar to honeybee farming. Each nest yields up to eight kilograms of hornet larvae every two months, sold at Rs 3,500 per kilogram. The couple sold 30 kg last year and aims for 100 kg this year. Local hotels in Beni serve fried hornet larvae, fetching Rs 600 per plate, providing a new income source and supporting hornet conservation efforts.

Siddhartha Hospitality Launches Luxury Wildlife Resort in Meghauli, Chitwan:
Siddhartha Hospitality has unveiled its latest luxury venture—Siddhartha Wildlife Retreat—in Meghauli, Chitwan, rebranding the former Sarang Wildlife Sanctuary. Set across 12 bighas of pristine jungle near Chitwan National Park, the resort features 17 Tharu-style villas, housing 24 deluxe rooms for 48 guests. Highlights include a premium pool with a bar, birdwatching, and interactive elephant experiences. Positioned as a high-end destination, the retreat targets affluent eco-tourists with jeep safaris, cultural experiences, and riverside serenity. The launch aligns with the group’s mission to elevate Nepal’s wildlife tourism. Siddhartha Hospitality now runs over 30 hospitality outlets across the country under various premium brands.

IPPAN Hails Government Move to Scrap ‘Take and Pay’ Provision, Boosting Investor Confidence in Hydropower:
The Independent Power Producers’ Association, Nepal (IPPAN) has welcomed the government’s decision to withdraw the controversial ‘take and pay’ provision from the new budget, calling it a major victory for the hydropower sector. At a press conference, IPPAN President Ganesh Karki said the removal will restore investor confidence and unlock stalled Power Purchase Agreements (PPAs). The provision had faced strong opposition for linking payments to actual consumption, increasing financial risks for producers. Following extensive lobbying and meetings with top leaders, the government amended Clause 227. IPPAN now urges swift approval of new PPAs to meet Nepal’s target of generating 28,500 MW by 2035.

Flights Suspended at Taplejung’s Suketar Airport Amid Monsoon Fog and Poor Visibility:
Flights at Taplejung’s only airport in Suketar have been suspended since June 13 due to poor visibility caused by monsoon fog and mist. Nepal Airlines, which resumed its Kathmandu–Taplejung route in April after a four-month hiatus, halted scheduled Monday and Friday flights citing unsafe flying conditions. Station In-charge Narayan Kumar Karki confirmed four flights have been affected since mid-June. On the latest cancelled flight, six passengers were stranded. The airline also reported a drop in bookings, as unreliable flights have forced locals to turn to long-distance road travel instead. Weather and technical issues continue to disrupt service consistency.