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 Falls by Double Digits on First Trading Day of the Week: The Nepal Stock Exchange (NEPSE) witnessed a double-digit decline on Sunday, the first trading day of the week. The market fell by 12.53 points, closing at 2,649.11 points, marking a 0.47% drop. On Sunday, a total of 300 securities were traded across 88,955 transactions, with 24,011,014 shares changing hands. The total turnover for the day amounted to Rs. 10.20 billion. Although the Hotel and Tourism sub-index saw a surge of 6.50%, other sub-indices could not register gains. Alongside hotels and tourism, the Development Bank, Life Insurance, Non-Life Insurance, and Trading sub-indices recorded some growth, while all other sub-indices experienced declines. The top gainers of the day were Nepal Micro Insurance Company and Crest Micro Life Insurance, both of which saw their stock prices surge by 10%. Their prices reached Rs. 2,457.60 and Rs. 2,031.70 respectively.

PM Oli Announces Completion of National Pride Projects by Fiscal Year 2082/83: Prime Minister KP Sharma Oli has announced that the government will review all National Pride Projects and ensure the completion of ongoing projects within the fiscal year 2082/83. Speaking in response to questions raised by lawmakers in the House of Representatives, Oli emphasized a new strategy that categorizes projects to be completed within the term of the House. He stated that projects would be prioritized based on feasibility and resource availability, while unfeasible projects would be suspended, and faulty ones would be scrapped. He further highlighted that the new policy aims to end the perpetual “work in progress” culture and ensure timely completion of development projects.

Economy Will Revive Only by Attracting Investors, Says Finance Minister Paudel: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel emphasized that the economy can only revive if investors are attracted. Speaking at a pre-budget discussion for the fiscal year 2082–83 organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu, Paudel highlighted the need to boost the confidence of the private sector and create employment opportunities. He noted that the current government is committed to listening to the concerns of the private sector and has already established an Economic Reform Advisory Commission to address economic challenges. He also mentioned efforts to address economic problems through ordinance-led legislation.

Nepali Congress Proposes Bishwo Paudel for Central Bank Governor: The Nepali Congress has proposed Bishwo Paudel, a member of the committee formed to recommend the name of the Governor and former Vice-Chairman of the National Planning Commission, for the position of Governor of Nepal Rastra Bank. The proposal was made by Congress President Sher Bahadur Deuba during a meeting with the ruling coalition and CPN-UML leaders at the Prime Minister’s residence in Baluwatar. Sources revealed that an earlier agreement between Prime Minister KP Sharma Oli and Deuba had nominated Gunakar Bhatta as Governor, but after Bhatta’s resignation was not accepted by Acting Governor Neelam Dhungana, Paudel’s name emerged as the new candidate.

NRB to Withdraw Rs 30 billion Liquidity: Nepal Rastra Bank (NRB) is set to withdraw liquidity worth Rs 30 billion through a 21-day deposit collection auction. The central bank announced that online bidding for deposit collection would be conducted through its bidding software until 3 PM today. The collected deposit will be issued today itself, according to NRB. Interested banks and financial institutions can apply for a minimum of Rs 100 million and a maximum of Rs 500 million, ensuring the amounts are divisible accordingly. The principal and interest of the deposit collection will mature on Jestha 18, 2082 BS. The collected amount can also be used as collateral in other banks and financial institutions, excluding NRB.

Rs 990 million Compensation Distributed for Lower Arun Hydropower Project: A total of Rs 990 million has been distributed as compensation to those affected by the 669 MW Lower Arun Hydropower Project under construction in Sankhuwasabha. The project is being built with major structures in Chichila Rural Municipality and Khandbari Municipality of Sankhuwasabha. Information Officer at the District Administration Office, Ramji Poudel, reported that Rs 999.8 million in compensation has been distributed so far to 253 families in the affected areas of Khandbari Municipality and Chichila Rural Municipality.

Hopes for International Flights from Pokhara International Airport: The launch of flights from the newly constructed Pokhara Regional International Airport has sparked hope among Pokhara locals for international flights directly from their city. Although 3,150 ropani of land was acquired for the project in 2032 BS, the construction was delayed for years. Locals, who even resorted to hunger strikes, finally saw the construction begin in 2073 BS with a concessional loan from China’s Exim Bank. Despite COVID-related delays, the airport was completed in 2080 BS with an investment of over Rs 22 billion. However, the absence of international flights since its completion has left many disappointed.

Shankar Group Denies Reports of Jayveer Deuba Purchasing Hilton Hotel Shares: Shankar Group has denied news reports claiming that Jaybir Deuba has purchased shares of the Hilton Hotel located in Naxal, Kathmandu. The Hilton Hotel issued a statement clarifying that there have been no changes in its founding members. “We have not brought in any new investors at this time,” said Shahil Agarwal, the hotel’s managing director. The denial follows news reports from some media outlets claiming that Jaybirr Deuba had acquired shares in the hotel. Jaybir is the only son of Nepali Congress President Sher Bahadur Deuba and central member Arzu Rana, who also served as the Minister of Foreign Affairs.

Telecom Operators Urge Government to Reduce Taxes Amid Rising Costs: Telecom service providers in Nepal have urged the government to reduce various types of taxes imposed on the sector, citing rising costs for consumers. They claim that heavy taxation on telecom services has made operations increasingly expensive. Despite declining voice service rates, high government-imposed fees and tax obligations are making it difficult for telecom companies to sustain their businesses. Currently, the government directly collects 53% of taxes from the telecom sector. This includes 30% income tax, 13% Value Added Tax (VAT), and 10% Telecommunication Service Charge (TSC), all of which are directly deposited into government accounts. Additionally, telecom companies are required to pay 4% of their total revenue as royalty and 2% as Rural Telecommunication Service Fee (RTDF) to the Nepal Telecommunications Authority (NTA).

Domestic Investors Commit NPR 124 billion in First Nine Months: Domestic investors in Nepal committed NPR 124 billion in investments during the first nine months (Shrawan–Chaitra) of the current fiscal year 2081–82. This is considered a positive development, given the economic challenges. During this period, a total of NPR 182.87 billion worth of investment proposals were approved. Of this, foreign investment accounted for only 31.7%, while domestic investors contributed the remaining 68.29%. The approved domestic investment was more than double that of foreign commitments. The government had set a target of NPR 44 billion for foreign investment this year. By Chaitra, the total commitment had exceeded the target, reaching NPR 57.98 billion.

Portugal Tightens Immigration Rules, Cancels Over 23,500 Residence Permits Including Nepalis: Portugal has intensified its immigration policies, canceling the residence permits of more than 23,500 applicants, according to The Portugal News. Among them, 4,500 individuals have been instructed to leave the country voluntarily within 20 days. The list of those affected includes Nepali nationals as well. A government source informed the Expresso newspaper that just weeks before the termination of the Agency for Integration, Migration and Asylum (AIMA) mission structure, 123,000 applications out of a total of 446,921 expressions of interest for residency had been approved, accounting for 27.5% of the total applications.

NEA Eases Procedures for Dedicated Feeder and Trunk Line Dues: The Nepal Electricity Authority (NEA) has introduced a simplified process for industries to settle outstanding dues for dedicated feeders and trunk lines. As per the decision made during the NEA Board meeting, industries can now deposit just 5% of the disputed bill amount as a security deposit before filing for review with NEA’s Review Committee. Previously, the Electricity Distribution Regulation 2078 required industries to deposit 25% of the disputed bill before seeking a review. Before that, the policy mandated a 100% security deposit, which was reduced to 25% during the tenure of former Executive Director Kulman Ghising. Additionally, the new provision allows customers to opt for non-cash security deposits, offering flexibility in the review process if they are dissatisfied with NEA’s decisions.

Stakeholders Call for Efficient Budget Allocation for FY 2082/83:  Stakeholders have emphasized the need for efficient budget allocation and execution for the fiscal year 2082/83. Speaking at a pre-budget discussion organized by the Society of Economic Journalists of Nepal (SEJON), former Chief Secretary Dr. Baikuntha Aryal presented a working paper highlighting the problems in budget formulation, allocation, execution, monitoring, and evaluation. He stressed the need for significant improvements in the budgeting cycle. Citing data from the last 50 years, Aryal pointed out that only 86.97% of the allocated budget, on average, was spent annually. Even after the implementation of federalism, the effectiveness of budget spending remains subpar, he noted.

Gandaki Province Emerging as a Hydropower Hub: Gandaki Province, with its abundant water resources, is steadily emerging as a hydropower hub. With federal, provincial, and local governments creating investment-friendly environments, investment in hydropower projects in Gandaki has seen a significant rise over the past decade. Hydropower projects have contributed to economic development, employment generation, and infrastructure development in local communities, with initiatives like road construction, drinking water projects, and school buildings being undertaken as part of corporate social responsibility.

Bajra Madi Hydropower Project Secures Rs 3.74 billion Financing: Bajra Energy Ventures Pvt. Ltd. has secured financial arrangements for its 24.8 MW Bajra Madi Hydropower Project. The financial closure, led by NMB Bank Limited along with Agricultural Development Bank, guarantees a loan investment of Rs 3.74 billion. The project, being constructed on the Madi River in Kaski’s Madi Rural Municipality, is set to upgrade its capacity to 31 MW, for which an application has been submitted to the Department of Electricity Development. The project will include a 43-meter-long dam, a 100-meter descender, an 8-kilometer tunnel, and a 125.5-meter gross head. The generated electricity will be connected to the Lekhnath substation via a 7.2-kilometer single-circuit transmission line.

Lack of Construction-Friendly Laws Hurting Contractors, Says FCAN Chair Singh:  President of the Federation of Contractors’ Association of Nepal (FCAN), Rabi Singh, has expressed concerns over the lack of construction-friendly laws, which have created persistent challenges for contractors. Speaking at the 25th General Assembly of the Construction Entrepreneurs Association in Makwanpur, Singh emphasized the need for infrastructure-friendly policies to boost development. He added that the recent amendments in procurement regulations have brought some relief but urged for more systematic legislative improvements.

Over 100 Trees Illegally Cut Before Dry Port Construction in Dodhara Chandani: More than 100 trees were found to have been illegally cut and smuggled before the planned construction of a dry port in Dodhara Chandani  Rural Municipality-1’s Gauri Shankar Community Forest. A total of 109 marked trees were discovered missing, according to Purushottam Wagley, Conservation Officer at Shuklaphanta National Park. The project requires the felling of 1,702 trees over 42 hectares of the community forest, which had already been marked for cutting.

Lamjung Emerges as Hydropower Hub with 17 Projects: Lamjung is emerging as a hydropower hub, with 17 projects generating electricity from rivers like Marsyangdi, Dordi, Midim, Ngadi, Syange, and Khudi. According to Meghnath Bhattarai, head of the Lamjung Electricity Distribution Center, the projects produce around 300 MW of electricity. Major projects include the 70 MW Middle Marsyangdi, 54 MW Super Dordhi ‘A,’ 50 MW Upper Marsyangdi, 30 MW Nyadi Hydropower, and others, contributing significantly to the region’s energy supply.

HIDCL’s Profit Drops Significantly in Third Quarter: The Hydroelectricity Investment and Development Company Limited (HIDCL) has reported a significant decline in its profit for the third quarter of the current fiscal year. According to its financial report, the company earned a profit of NPR 729 million in the first nine months. In comparison, HIDCL had made a profit of NPR 1.09 billion during the same period last year. The company’s income saw a sharp decline, with its financial revenue dropping from NPR 1.58 billion to NPR 1.05 billion. Due to the reduced profit, the Earnings Per Share (EPS) of the company stood at NPR 3.96, down from NPR 6.38 in the previous year. The decline in interest rates from banks is cited as a primary reason for the drop in financial income.

Chandragiri Hills Limited Earns NPR 108.8 million in Net Profit: Chandragiri Hills Limited has reported a net profit of NPR 108.8 million for the third quarter of the current fiscal year. According to the company’s financial report, the profit was recorded by the end of Chaitra (March-April). In the same period last fiscal year, the company had earned a net profit of NPR 107.9 million. Despite the increase in net profit, the company’s overall revenue saw a decline. By the end of Chaitra, the company’s revenue stood at NPR 635.1 million.

Entrepreneurs in Butwal Industrial Area Complain of Space Constraints: Industrialists in the Butwal Industrial Area have expressed concerns over limited space hindering their business expansion. Due to space constraints, it has become challenging for businesses to upgrade their infrastructure and add new equipment. A team from the Butwal Chamber of Commerce and Industry recently conducted an on-site inspection of industries in the Butwal Industrial Area. The team collected feedback and noted that several industries are struggling with limited land availability. Metal Cast Industry, established in 2052 BS, is one such example. Despite its capacity expansion over the years, its operations are now restricted due to space shortages.

Gold Prices Drop Further Today: The price of gold has fallen further today. After a decline of 1,400 rupees per tola last Friday, it has dropped an additional 300 rupees today. As per the Feedration of Nepal Gold and Silver Dealers Association, the price of gold per tola is now 190,500 rupees. Between Sunday and Thursday of the previous week, the price of gold had increased by 7,800 rupees. However, the price has now decreased for two consecutive days. Last Friday, the price of gold per tola was 190,800 rupees. On 9th of Baishakh, the price of gold had reached 197,900 rupees, which was the highest price ever recorded. Since then, the price of gold has dropped by 14,400 rupees in just nine days.