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:

Deposit Growth Surges in Nepal’s Banking System Amid Weak Credit Flow

The banking system in Nepal is facing growing challenges as deposits continue to rise rapidly while credit flow remains sluggish. According to recent data, deposits in the banking system have crossed Rs 7.9 trillion, while credit flow is limited to Rs 5.874 trillion. This indicates that a large amount of investable resources is accumulating in banks. Despite falling interest rates, credit demand from the private sector has not increased as expected, making liquidity management increasingly difficult. Although liquidity is sufficient, the demand side of the economy remains weak.

Nepal’s Revenue Collection Falls Short of Targets Over Five Years

Government data show that Nepal’s revenue collection has remained below targets over the past five fiscal years. During this period, revenue collection averaged only 81.7 percent of annual targets. The highest achievement was recorded in fiscal year 2020/21 at 92.5 percent of the target, while the lowest came in 2022/23 at just 69.3 percent. For the current fiscal year, the government aims to collect Rs 1.480 trillion in revenue. By mid-April, around 60 percent of the annual target and 83.61 percent of the target set for the first nine months had been collected.

Government Spends Rs 1.153 Trillion in First 10 Months of Fiscal Year 2025/26

As the first 10 months of the fiscal year 2025/26 near completion, the government has spent Rs 1.153 trillion from the national budget. According to the Financial Comptroller General Office, this amounts to 58.75 percent of the total Rs 1.964 trillion budget allocated for the current fiscal year. Out of the Rs 1.180 trillion allocated under recurrent expenditure, the government has already spent Rs 809 billion.

Nepal Begins Electricity Export to India During Off-Season Amid Increased Production

Due to repeated rainfall in recent times, electricity production has increased, leading to the start of electricity exports to India even during the off-season. At present, more than 300 megawatts of electricity is being sold to India at various times, although imports are still ongoing. There have been periods where electricity is both imported and exported alternately. Exports are higher mainly during nighttime when domestic demand is low. Normally, Nepal is able to export electricity to India from mid-June to late December.

Government Launches Public Suggestion Portal for Upcoming Budget and Policy Programs

With the aim of incorporating public feedback into the policy and program as well as the budget for the upcoming fiscal year 2026/27, the government has launched a “Suggestion Collection Portal.” For this purpose, the Office of the Prime Minister and Council of Ministers has initiated a digital platform named suggestions.opmcm.gov.np. Citizens will also be able to submit their suggestions for the policy and program to be made public next Monday through this portal. According to the Prime Minister’s Office, the platform has been launched to make governance more transparent and people-oriented.

Supreme Court Orders Crackdown on Illegal Anti-Microfinance Activities

The Supreme Court has ruled that the activities of the “Protest Group Against Microfinance” have created serious risks for Nepal’s financial system and rural economy, ordering the government to strictly control illegal actions carried out in the group’s name. A joint bench of Justices Hari Prasad Phuyal and Bal Krishna Dhakal directed authorities to take legal action against acts such as obstructing microfinance operations, attacking employees, vandalism, and encouraging borrowers not to repay loans. The court also ordered the government to ensure the security of microfinance institutions and their staff, while directing Nepal Rastra Bank to strengthen monitoring of the sector and act against institutions found exploiting borrowers or charging excessive interest.

Fuel Price Hike in West Asia Conflict Impacts Nepali Consumers

With continuous increases in fuel prices due to the ongoing war in West Asia, its impact has now reached the kitchens of Nepali consumers. Fuel prices have increased five times in the past two months, affecting transportation and freight charges, which in turn has impacted household expenses. In recent days, prices of edible oil, green vegetables, fruits, eggs, cement, iron rods, and plastic goods have also increased. Consumer rights activists say the impact of inflation has become more severe after transportation fares rose.

Government Implements New Customs Regulation

The government has enforced the new Customs Regulation 2026 to make international trade more technology-friendly, transparent, and efficient. The Ministry of Finance Nepal announced through the Nepal Gazette that the nearly 17-year-old Customs Regulation 2008 has been fully repealed and replaced with a modern framework. The new regulation aims to simplify import and export procedures while introducing stricter measures to control revenue leakage.

Government to Launch “Price Transparency Week” Nationwide from Monday

Following increasing complaints of market irregularities, artificial price hikes, and consumer exploitation, the government is set to launch a special campaign to control such activities.  Starting Monday, the government will organize a nationwide “Price Transparency Week,” which will run until May 17. Under this special campaign, monitoring activities will be intensified from local levels to the federal government.

Study Recommends 60 Percent Tax Hike on Tobacco Products

A study has shown that increasing the current 41 percent tax on tobacco products by 60 percent could generate an additional Rs 12 billion in revenue in Nepal. According to research by Nepal Development Research Institute (NDRI), such a tax increase could reduce tobacco consumption by 5 to 11 percent. The institute said higher taxes on harmful products would not only increase government revenue but also improve public health by discouraging consumption.

Supreme Court Allows Excise Duty Adjustment on Industrial Packaging Materials

The Supreme Court has ruled that packaging materials (wrappers) used in industrial production qualify as raw materials, allowing manufacturers to claim adjustments or deductions on excise duties paid on them. The verdict came in a case filed by Pokhara Noodles — the producer of Ramba and Jojo noodles — against the Inland Revenue Department and the Large Taxpayers Office. The court’s full verdict clarified that wrappers and packaging materials can be treated as raw materials under Section 3(A)(3) of the Excise Duty Act, 2002, making them eligible for excise duty deductions.

Nepal Bank Launches “Plot Loan” Scheme for General Public

Nepal Bank has introduced an attractive “Plot Loan” scheme targeting customers who dream of purchasing land and building their own homes. The bank launched this special credit facility with the aim of helping individuals buy land and turn their housing dreams into reality. Under the scheme, launched with the slogan “We turn your dreams into reality,” customers will now be able to easily access loans for land purchase. A key feature of the loan is its long repayment period. According to the bank, borrowers can repay the loan within a maximum of 20 years, which is expected to reduce the monthly installment burden and make land ownership easier for middle-class families.

Social Welfare Council Collects Over Rs 4 Million Rupees in Arrears

Twenty organizations that had rented buildings, halls, and shops at Bhirkuti Mandap under the Social Welfare Council have paid arrears amounting to Rs 4.75 million. After the Council issued public notices twice against organizations and individuals who had not paid long-pending dues, the amount was recovered. Out of a total arrear of Rs 74.0074 million, only Rs 4.075754 million has been collected so far after locking the offices of defaulting entities. More than Rs 70 million is still pending.

Customs Clearance Resumes in Rasuwa After Importers Agree to Use MRP Stickers

Customs clearance operations that had been halted due to the absence of Maximum Retail Price (MRP) stickers have resumed in Rasuwa Customs. The process restarted after importers committed to attaching MRP stickers at their warehouses before selling the products, as the mandatory sticker policy could not be implemented immediately. The Rasuwa Customs Office had resumed active operation from January 1, 2026, after the construction of the Miteri Bridge, following prolonged disruption caused by flooding in the Lhende River at Timure, Gosainkunda Rural Municipality-2, on July 8, 2025.

Gandaki Province Increases Public Transport Fares After Fuel Price Hike

The Gandaki Province Government has increased public transport fares following the recent rise in fuel prices. The adjustment was made through a ministerial decision in accordance with Rule 76 of the Gandaki Province Vehicle and Transport Management Regulation 2024. Following the revision, passengers traveling within Pokhara Valley on public city buses for distances up to 20 kilometers will now pay Rs 24 for the initial three kilometers. The last fare adjustment in the province had been made on February 13, 2022.

Yango Ride Expands Driver Network Program to Chitwan

Ride-hailing service Yango Ride has expanded its partner driver network program outside Kathmandu, inviting interested drivers from Chitwan and nearby areas to join Yango Pro. The program was organized at three locations in Chitwan and attended by senior officials from Yango’s headquarters and local team. The event featured driver registration, orientation sessions, interactive games, gift distribution, fuel cards, branded bags, caps, promotional materials, and food stalls.

Agni Cement Industries Records 46 Percent Growth in Business

Agni Cement Industries reported a 46 percent increase in business in 2025 compared to 2024. The company posted a turnover of Rs 589 million in the last fiscal year, up from Rs 398 million in 2024. However, its business had reached Rs 670 million in 2023. In the first eight months of the current fiscal year, the company recorded transactions worth only Rs 119 million.

Mega College to Host Second International Conference on Contemporary Commerce Issues

The second international conference on issues related to contemporary commerce will be held in Lalitpur on May 15 and 16. Mega College Kumaripati, Lalitpur, is organizing the event in collaboration with the Nepal Commerce Association. Experts at the conference will deliver presentations and lectures on topics related to innovation, sustainability, and global competitiveness. According to Mega College professors, management experts, policymakers, and students from Nepal, India, and other countries will participate in the conference.

Gold Prices Drop by Rs 1,000 Per Tola in Domestic Market

 Gold prices declined in the Nepali market on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold fell by Rs 1,000 per tola (11.66 grams) and is being traded at Rs 298,900 per tola today. On Friday, gold was traded at Rs 299,900 per tola. Meanwhile, silver prices increased today. Silver, which was traded at Rs 5,275 per tola on Friday, is being bought and sold at Rs 5,300 per tola today.