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 Fall Continues This Week: The NEPSE index, which measures stock market performance, dropped by 5.99 points on Thursday — a 0.22% decrease — closing at 2,640.96 points. After a 1.60-point gain on Monday, NEPSE fell by 35.73 points on Tuesday and 11.97 points on Wednesday. The decline continued on Thursday, the last trading day of the week. On Thursday, share prices of 94 companies increased, 153 declined, and one remained unchanged. NEPSE reported transactions worth Rs 7.97 billion from 77,670 trades.

Finance Ministry Begins Preparations for Budget Execution: The Ministry of Finance has begun internal preparations for implementing the budget for FY 2082/83 (2025/26). A meeting was held at the ministry to align policies, programs, budgets, and milestones into a coordinated action plan. Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel instructed officials to initiate procurement processes for programs included in the budget statement to ensure faster implementation once the budget is approved.

Report on New Stock Exchange License to Be Public: A report prepared by a study committee led by Chintamani Shiwakoti, a board member of Nepal Rastra Bank, regarding licensing of a new stock exchange will be made public. The board meeting of the Securities Board of Nepal (SEBON) on Thursday decided to release the report. The Pushpa Kamal Dahal-led government had formed the three-member committee in Magh 2080 (January 2024). The committee submitted its report in Baisakh 2081 (April, 2024), recommending the restructuring of NEPSE and licensing of a new exchange. The report is now set to be published.

Nepal Rastra Bank Working on Digital Currency: With growing internet penetration and digital adoption, Nepal Rastra Bank (NRB) is working toward digitizing currency by introducing a Central Bank Digital Currency (CBDC). This move aims to reduce costs associated with printing and distributing physical currency. NRB had released a preliminary study report on CBDC on Ashoj 13, 2079 (September 29, 2022), and is currently working on internal preparations for its implementation.

Mandatory Bank Statement in Land Transactions Suspended for Now: The requirement for buyers and sellers to submit mandatory bank statements during land transactions is unlikely to be enforced immediately. Officials at the Ministry of Land Management say the Prime Minister’s Office has raised concerns, leading to internal discussions on whether to suspend or revise the provision. The Department of Land Management and Archives had approved a new directive on property transactions related to anti-money laundering and terrorism financing on Jestha 13, 2082 (May 27, 2025). A circular was sent to land revenue offices nationwide on Jestha 14 (May 28).

Power Producers Protest ‘Take or Pay’ Provision in Budget: Independent power producers have united in opposition to the new ‘Take and Pay’ provision in power purchase agreements (PPA) for run-of-river (RoR) hydroelectric projects, announced in the upcoming budget. IPPAN, the Independent Power Producers’ Association of Nepal, organized a public event featuring black banners and demanded the resignation of Energy Minister Deepak Khadka. According to the promoters, Nepal Electricity Authority Managing Director Hitendra Dev Shakya, Energy Minister Khadka, and Finance Minister Bishnu Poudel have all denied responsibility for the provision, claiming it didn’t originate from their offices.

Government Approves Rs 57.64 billion Investment for ‘Muktinath Cable Car’: The Government of Nepal has approved an investment of NPR 57.64 billion for the ambitious ‘Muktinath Cable Car’ project, considered one of the longest cable car systems in the world. The decision was made during the 64th meeting of the Investment Board of Nepal, held on Thursday. According to Board Spokesperson Pradhumna Prasad Upadhyay, the investment approval marks a significant step forward in the development of the high-profile tourism infrastructure project. The same meeting also formed a negotiation committee under the leadership of the Board’s CEO, Sushil Gyawali, to initiate discussions on the Project Development Agreement (PDA).

Ethanol Blending in Petrol Still Not Implemented in Nepal Despite 20-Year-Old Plan: Despite the government introducing the idea of blending ethanol into petroleum products nearly two decades ago, Nepal has yet to implement the policy. Experts believe that blending ethanol with petrol could reduce annual fuel imports by around NPR 12.5 billion. However, the plan remains stalled due to a lack of execution and policy commitment. While neighboring India has been successfully mixing ethanol with petrol for years and selling it to consumers, Nepal has made no significant progress in adopting the practice.

Fraud in Foreign Employment Rises Sharply: Fraud cases in the name of foreign employment have increased. According to the Department of Foreign Employment, 9,866 complaints were filed from Shrawan to Baisakh in fiscal year 2081/82 (2024/25). That’s a 27% rise compared to 7,763 complaints registered in 2080/81 (2023/24). In comparison, there were 3,356 complaints in 2079/80 (2022/23). So far in FY 2081/82 (2024/25), 166 cases have been filed in court, with claims for compensation amounting to billions, according to the department.

Sirsiya Dry Port Customs Office to Be Merged into Birgunj Customs from Mid-July: The Sirsiya Dry Port Customs Office in Parsa will be merged into the Birgunj Customs Office starting from Shrawan 1 (July 17), according to a decision by the federal government. Currently, both the Integrated Check Post (ICP) and the dry port customs operate under Birgunj Customs. Dhan Bahadur Baruwal, Chief of the Dry Port Customs Office, said the merger will take place after the end of the current fiscal year (mid-July) since both offices have separate revenue targets and budgets until then.

Koshi Province Assembly Committee Advises Budget Prioritization: The Finance Committee of the Koshi Province Assembly has advised the provincial government to allocate the upcoming 2082/83 (2025/26) budget in line with defined priority areas. The committee suggested aligning the budget with the second periodic plan and emphasized reducing unused budget allocations as much as possible, in accordance with the Financial Procedures and Fiscal Responsibility Act and regulations.

Bhairahawa Customs Server Down for Three Days: The Bhairahawa customs office server has been down for the last three days. Due to the server problem, Indian cargo trucks entering Nepal from India have not been able to clear customs. According to information officer Narendra Prasad Chaudhary, the server issue has persisted for three days. The ASYCUDA World software used by the customs office has been frequently going down, causing serious disruptions in cargo clearance.

Economic Growth Rate Improves in Karnali Province: According to a new report by the National Statistics Office, the economic growth rate of Karnali Province has shown signs of improvement. The growth rate has increased from 4.61% to 4.74%. The report estimates Karnali’s Gross Domestic Product (GDP) to be NPR 255.59 billion, making it the smallest economy among Nepal’s seven provinces. In comparison, the estimated national GDP is NPR 6.107 trillion. The slight uptick in Karnali’s growth rate is seen as a positive sign for the province’s struggling economy.

Storm Causes Rs 40 million Damage to Chitwan Banana Farms: Recent storms have caused severe damage to banana farms in Chitwan, with estimated losses exceeding Rs 40 million. According to Ghananath Mahato, president of the Chitwan Banana Producers’ Association, banana farmers have faced similar issues in previous years as well. Despite promises, insurance payouts for past damages were never received. Mahato said that out of 3,000 bighas of banana cultivation in the district, 30% of the plants were destroyed by the wind and are no longer usable.

100kW Solar Mini-Grid Built in Kalikot: A 100-kilowatt solar mini-grid project has been constructed with joint investment from Chankheli Energy Pvt. Ltd., the Alternative Energy Promotion Centre, and Shubha Kalika Rural Municipality. Chankheli Energy invested Rs 13 million and the AEPC contributed Rs 29.2 million to the project. Chairman Jajaraj Shahi of Chankheli Energy said the total investment reached Rs 62.5 million. Additional infrastructure such as poles, walls, roads, and field construction was contributed by other stakeholders and the local government.

‘Lumbini Dream Garden Guesthouse and Restaurant’ Reopens in Dubai: The ‘Lumbini Dream Garden Guesthouse and Restaurant (LLC)’ in Bur Dubai, United Arab Emirates, has reopened after a three-month closure. Operated under a new concept, this was the first guesthouse of its kind launched by a Nepali entrepreneur in Dubai about eight years ago. Rajendra Guragain, a young entrepreneur who has lived in Dubai for over two decades, reopened the guesthouse with an emphasis on Nepali cuisine and cultural ambiance.

Him Star Energy’s IPO Opens from June 13: Him Star Power Company’s initial public offering (IPO) will open for applications starting Jestha 30 (June 13). In the first phase, the company will issue IPO shares to project-affected locals and Nepali migrant workers. Out of the total issued capital of Rs 373 million, 30 percent has been allocated for the general public. Among that, 186,500 shares are allocated to locals affected by the project, and 93,250 shares are reserved for Nepalis working abroad. According to NIC Asia Capital, the issue manager, both affected locals and migrant workers can apply for a minimum of 10 and a maximum of 10,000 shares.

Prabhu Mutual Fund Opens for Applications: Applications have opened for investment in the Prabhu Systematic Investment Scheme mutual fund, promoted by Prabhu Bank. A total of 25 million units are available for sale to the public at a face value of Rs 10 per unit. According to Prabhu Capital, the issue manager, applications can be made for a minimum of 100 and a maximum of 3.1 million units. The earliest closing date for the issue is Jestha 27, and if not fully subscribed, the final deadline is Ashad 6 (June 20).

Silver Price Hits Record High; Gold Price Remains stable on Friday: On Friday, the price of gold remained stable. The Federation of Nepal Gold and Silver dealers’ Association stated that gold was traded at the same rate as the previous day, Rs 193,700 per tola. Meanwhile, the price of silver hit a new record high. The price rose by Rs 75 per tola in a single day. The price of silver reached Rs 2,150 per tola that day — the highest in history. On the previous day, it was traded at Rs 2,075 per tola. Both silver and gold prices are expected to rise further in the international market.