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 Declines for Fourth Consecutive Day, Trading Volume Drops to Rs 8.73 billion: The Nepal Stock Exchange (NEPSE) index fell for the fourth straight trading day on Wednesday, declining by 13.96 points to settle at 2,620 points. Along with the decline in the index, the total trading volume also saw a dip. Compared to Tuesday’s turnover of Rs 9.63 billion, Wednesday’s trading volume stood at Rs 8.73 billion. Out of the traded companies, the share prices of 62 companies increased, while 183 companies saw declines, and one remained unchanged. Despite the overall market downturn, the “Others” group saw a significant rise of 2.46%, driven by strong performances from two reinsurance companies. Similarly, the Development Bank sector increased by 1.19%, while all other sectors witnessed declines.

Nepal’s Government Arrears Exceed 30 billion in the Last Fiscal Year: The total arrears to be collected by all three levels of government and various agencies in Nepal has surpassed 30 billion rupees. According to the Office of the Auditor General, the arrears for the fiscal year 080/81 reached 91.59 billion rupees, with 30.12 billion rupees still to be collected. As per the summary of the 62nd report published by the Office of the Auditor General, the arrears to be collected by federal government offices alone amounted to 18.33 billion rupees.

SEBON Prepares to Accelerate IPO Approvals After Two-Year Stagnation: With IPO issuance halted for nearly two years, the Nepal Securities Board (SEBON) is preparing to hold sales managers accountable under a new fast-track system. The board has been accused of seeking commissions to accelerate IPO approvals, which led to project backlogs. To address this, SEBON plans to demand progress reports from sales managers for all projects in the pipeline. “We are conducting site visits for all files and projects, and this process is causing delays in IPO approvals,” a SEBON source said. “There are many companies in the pipeline, and studying each file is time-consuming, so we are asking for additional reports from sales managers.”

NEPSE Directs Listed Companies to Update Financial Information: The Nepal Stock Exchange Limited (NEPSE) has instructed all listed companies to provide updated financial information and other relevant details. According to the notice, companies that have not made their profiles, contact details, board of directors, and financial reports available on the website are required to log in to the “Notes” section and enter the information. Listed companies must visit the NEPSE website, access the “Notes” login, and upload their company details accordingly.

Minister Dahal Urges South Korea to Invest in Nepal’s Railway Development: Minister for Physical Infrastructure and Transport, Devendra Dahal, has called on South Korea to confidently invest in the development and expansion of Nepal’s railway services. During a meeting with representatives of Korea Rail (KORAIL), Minister Dahal emphasized that railway expansion is a priority for the Government of Nepal. He also urged Korean investors to consider research and studies on expanding railway networks to Nepal’s religious, cultural, and tourist destinations.

Commercial Banks Set New Deposit Interest Rates: Before the start of the new month, commercial banks have set the deposit interest rates for the month of Jestha. These interest rates will be effective from Thursday. According to the new rates, savings accounts will offer interest rates ranging from a minimum of 3.00% to a maximum of 5.10%. Banks and financial institutions are required to keep the interest rate difference for different types of savings deposits within 2%. Based on this, interest rates for both general and special savings accounts have been fixed. Most banks have set the lower limit for savings accounts at 3%. The bank with the highest lower limit is NIC Asia Bank, offering 3.10%.

NEA to Sign Power Purchase Agreements for 5,000 MW of Hydropower Projects: The Nepal Electricity Authority (NEA) has announced plans to sign Power Purchase Agreements (PPAs) for hydropower projects totaling 5,000 MW. In a notice issued on Wednesday, the NEA called for applications from projects based on Reservoir Storage (PROR) and Run-of-River (ROR) models to finalize PPAs. The NEA is set to sign agreements for 1,859 MW from ROR projects and 3,107 MW from PROR projects. The NEA also urged hydropower projects that already have connection agreements but have yet to finalize PPAs to come forward and initiate the power purchase agreement process.

Government’s Plan to Launch IT Decade Fails in Current Fiscal Year: The government’s goal to mark the current fiscal year 2081–82 as the starting year of the “IT Decade” has failed. Despite setting ambitious targets for developing the information technology sector, the plan has not materialized as expected. The budget announced on Jestha 15 (May 29, 2024) aimed to establish Nepal as an IT hub, with a target of generating NPR 3 trillion in exports and creating 500,000 direct and 1 million indirect jobs over the next ten years. The budget statement had outlined the upcoming fiscal year as the beginning of the IT Decade, but progress has been stagnant.

Foreign Investment Commitment of NPR 58 billion Received in First Nine Months of Fiscal Year 2081–82: In the first nine months of fiscal year 2081–82, foreign investment commitments worth NPR 58 billion have been secured. Following improvements in the business environment and investment laws, foreign investor interest has significantly increased. As of the end of Chaitra (April 2025), the government received nearly NPR 58 billion in foreign investment commitments. While these commitments are promising, it often takes decades to see implementation, with actual production yet to materialize. Most of these investment commitments came through government channels.

Government Plans Austerity Measures in Upcoming Fiscal Year Budget 2082-83: The government is preparing for widespread expenditure cuts in the upcoming budget for the fiscal year 2082-83. Due to insufficient revenue and pressure on resources, the government plans to adopt an austerity strategy for budget allocation. Finance Minister Bishnu Prasad Paudel stated that given the limited resources, the government will focus on maximizing returns while allocating the budget. The budget will particularly aim to promote the private sector, create employment opportunities, and strengthen the national economy.

Government Plans to Implement ‘Readiness Filter’ in Upcoming Budget: The government is preparing to implement a “Readiness Filter” in the upcoming fiscal year’s budget. This filter will be used to prioritize and select projects based on their needs, aiming to manage resource allocation more efficiently by revisiting existing projects. The “Readiness Filter” concept has been introduced to ensure that foreign aid is utilized according to national needs and priorities, while completing projects within the set timelines, budgets, and quality standards. Finance Minister Bishnu Poudel mentioned the implementation of the “Readiness Filter” in the principles and priorities of the Appropriation Bill 2082, which he presented to the federal parliament’s House of Representatives and National Assembly.

Nepal Airlines Twin Otter Returns to Service After Nearly a Year of Engine Repair: Nepal Airlines Corporation (NAC) has successfully brought a Twin Otter aircraft back into operation after nearly a year of engine repair. According to NAC, the 9N-ABT aircraft had been grounded since Jestha 23 (June 6, 2024) due to engine unavailability and resumed regular flights from Baisakh 29 (May 12, 2025). The corporation spent over 11 months repairing the aircraft due to the lack of a suitable engine. During this period, another Twin Otter, 9N-ABU, was also grounded from Poush 7 (December 22, 2024) for three months and only returned to service in the second week of Falgun (late February 2025) after necessary repairs.

Nepal Rastra Bank Governor Appointment Process Stalls Amid Controversy: The appointment process for the Governor of Nepal Rastra Bank (NRB) has become increasingly complicated. Despite an agreement between Prime Minister KP Oli and Nepali Congress President Sher Bahadur Deuba to appoint Dr. Bishwo Poudel as the new governor three days ago, the recommendation committee remains incomplete. Adding to the tension, a writ petition has been filed against Poudel. Meanwhile, a show cause order was issued against outgoing governor Maha Prasad Adhikari concerning a separate writ. Political wrangling over power-sharing has not only drawn criticism but also led to legal challenges. The committee formed to recommend the governor, which was established one and a half months ago, has not yet held a single meeting, despite the legal requirement to appoint a new governor by Falgun 24 last year. (Nepali Calendar).

SEBON Chairman Shrestha Under Pressure Within Six Months of Appointment: Less than six months into his tenure, Santosh Narayan Shrestha, the Chairman of the Securities Board of Nepal (SEBON), is facing intense pressure and scrutiny. Shrestha, surrounded by multiple allegations, is finding it increasingly challenging to work freely amidst political and business sector criticisms. Appointed on Mangsir 10, 2081 (November 26, 2024), and assuming office on Mangsir 12 (November 28, 2024), Shrestha faced accusations of being a “broker’s man” from political leaders right from the start. Notably, Maoist Center and Rastriya Swatantra Party leaders and MPs alleged that Shrestha’s appointment was influenced by intermediaries and interest groups, who spent billions to secure his position. However, none of these groups have been explicitly identified.

Private Sector Perspective Needs to Change, Says FNCCI President Dhakal: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has emphasized the need to change the perspective towards the private sector. Speaking at the Budget Discussion Program for Fiscal Year 2082/83 held in Kathmandu on Wednesday, Dhakal stated that there is a traditional mindset that views businessmen solely as profit-driven. “There is a common perception that the private sector only talks about profit, but this is incorrect. We need to change that view,” Dhakal said. He further added, “Unless there is a priority for the private sector to invest, increase revenue, and generate employment, there will not be significant economic growth, whether at the federal, provincial, or local levels.”

Non-Life Insurance Profits Drop by 54.45% Due to Floods: Non-life insurance companies in Nepal have reported a 54.45% drop in profits in the first nine months of the Fiscal Year 2081/82. The 14 non-life insurance companies operating in Nepal posted a total profit of NPR 2.41 billion during this period, compared to NPR 5.29 billion in the same period last fiscal year. The decline is mainly attributed to claims caused by the floods and landslides of Ashoj 10–12 (September 26–28, 2024). Chunki Kshetri, CEO of Sagarmatha Lumbini Insurance, stated that the floods caused physical damage worth over NPR 46 billion, heavily impacting insurance claims.

NIFRA Gets Approval for NPR 5 billion ‘NIFRA Energy Bond’: The Nepal Securities Board (SEBON) has approved Nepal Infrastructure Bank Limited (NIFRA) to issue the NIFRA Energy Bond worth NPR 5 billion. The board granted permission on Tuesday to sell 5 million units of bonds priced at NPR 1,000 each. The bond has a tenure of seven years with an interest rate of 6%. SEBON has defined this bond as a Green Bond, marking the first such issuance in Nepal aimed at promoting the green economy.

Himalayan Reinsurance Reports 6.25% Profit Growth: Himalayan Reinsurance has reported a 6.25% increase in profit for the third quarter of the current fiscal year. According to the financial statement released by the company, the profit from Shrawan to Chaitra has reached NPR 989.3 million. In the same period last year, the profit was NPR 931.1 million. This improvement is attributed to an increase in direct premium income, which has risen from NPR 3.49 billion to NPR 4.18 billion.

MP Hari Dhakal Accuses Government of Politicizing Institutions Like NRB: Rastriya Swatantra Party (RSP) MP Hari Dhakal has accused the government of attempting to capture institutions like Nepal Rastra Bank through political influence. Dhakal’s remarks came after it was reported that the Congress-UML alliance had agreed to appoint Dr. Bishwo Poudel as the Governor. Poudel also resigned from the selection committee, sparking Dhakal’s criticism. Dhakal expressed discontent, alleging that the government is trying to place an electoral rival in charge of Nepal Rastra Bank. In the last election, Dhakal had defeated Nepali Congress candidate Dr. Bishwo Poudel in Chitwan.

Taragaon Regency (Hyatt Hotel) Earns NPR 337.5 million in Profit: Taragaun Regency (Hyatt Hotel) has earned NPR 337.5 million in profit during the last nine months. According to the third-quarter financial statement, the company has experienced a moderate increase in profit during this period. Operational income has increased by approximately NPR 80 million, and total revenue has grown from NPR 1.13 billion to NPR 1.21 billion. The company’s annual earnings per share (EPS) stands at NPR 17.20.

National Life Insurance Declares 15% Dividend for Shareholders: National Life Insurance has announced a 15% dividend for its shareholders following a board meeting held on Wednesday morning. As per the decision, the dividend comprises a 10% cash dividend and a 5% bonus share. The company also informed that 0.789% of the cash dividend will be deducted for tax purposes. Currently, the company’s paid-up capital stands at NPR 5.21 billion, and its share price is approximately NPR 620 per share.

Gold Jewelry Sales Decline During the Season: According to jewelers, gold jewelry sales have decreased due to significant price fluctuations. The months of Baishakh, Jestha, Asar, Mangsir, Magh, and Falgun are considered festive months, with weddings taking place during this time and leading to a surge in jewelry sales. The Federation of Nepal Gold and Silver Dealers’ Association reports that daily sales of gold jewelry typically exceed 45 kilograms. However, this year, the sales have decreased, with business conditions being different than expected.

Nepal Insurance Authority Chair Ojha Urges to Increase Credibility of Insurance Sector: Sharad Ojha, the chairman of the Nepal Insurance Authority, has urged insurance companies to work towards increasing the credibility of the insurance sector. Speaking at the 57th anniversary event of the Nepal Insurance Authority in Kathmandu, he emphasized the need to address shortcomings in the sector. Ojha mentioned that the current priority should be enhancing the credibility of the insurance sector by addressing complaints related to claims, life, and non-life insurance.

Gold Price Rises While Silver Drops in Nepal: The price of gold has increased by NPR 500 per tola, while silver has dropped by NPR 10 on Wednesday. According to the Federation of Nepal Gold and Silver Dealers Association, the trading price of gold reached NPR 185,300 per tola. On the other hand, silver, which traded at NPR 1,970 per tola on Tuesday, is currently being sold at NPR 1,960. Internationally, gold was being traded at

USD 3,226 per ounce.