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:

Auditor General Says Rs 6.12 Billion in Tax Waivers Granted to Foreign Aid Projects

Office of the Auditor General has said that projects operated under foreign assistance received tax and customs waivers worth Rs 6.12 billion in fiscal year 2024/25, in line with agreements and conditions signed with donors. The 63rd Annual Report of the Auditor General states that after procurement contracts are finalized, tax exemptions provided through the “master list” system are benefiting construction companies more directly than the projects themselves. According to the report, taxes and customs duties are not included while preparing project cost estimates.

Foreign Investment Commitments Exceed Rs 45 Billion In 10 Months

According to the Department of Industry, foreign direct investment commitments worth more than Rs 45.32 billion have been received in the first 10 months of fiscal year 2025/26. From mid-July 2025 to mid-May 2026, a total of 728 projects have attracted investment commitments during this period.

Nepal Airlines Debt Exceeds Rs 55 Billion Due To Loan Default

Nepal Airlines Corporation has failed to repay principal and interest on time, due to which the loan taken to purchase aircraft has increased to over Rs 55 billion. According to the 63rd report of the Office of the Auditor General, the loan provided to the corporation by government guarantee has increased significantly. The corporation had taken a loan of Rs 36 billion to purchase aircraft. This loan was taken from the Employees Provident Fund and the Citizen Investment Trust to purchase A320 and A330 aircraft on June 18, 2013, and June 11, 2017.

Only 14% of Approved Foreign Investment Entered Nepal in FY 2024/25

Nepal has received only a small portion of its approved foreign investment commitments, according to the Office of the Auditor General. The Auditor General’s 63rd Annual Report states that foreign investment proposals worth Rs 79.69 billion from 1,009 investors were approved in fiscal year 2024/25. However, only Rs 11.30 billion was actually brought into the country by just 97 investors — only 14% of the approved amount. The report shows a declining trend between foreign investment commitments and actual inflows in recent years.

Nepal Electricity Authority Invests Rs 56.8 Billion Without Government Approval

It has been found that the Nepal Electricity Authority has made share investments worth Rs 56.8 billion without obtaining approval from the Government of Nepal. According to the 63rd report of the Office of the Auditor General, the authority has invested in 35 entities, including subsidiaries, associates, and others. The report states that according to Section 5(a) of the Nepal Electricity Authority Act 1984, approval from the Government of Nepal is required before making share investments.

Nepal’s Banking Sector Non-Performing Loans Rise to 5.60%

Non-performing loans (NPLs) in Nepal’s banking sector have been increasing recently, according to data published by the Nepal Rastra Bank for the third quarter of the current fiscal year 2025/26. The report shows that the overall NPL ratio in the banking system has reached 5.60%. Among the 20 operating commercial banks, NIC Asia Bank recorded the highest non-performing loan ratio at 8.85%. The bank has set aside Rs 22.32 billion as loan loss provisioning. However, in terms of total loan loss provisioning, Nepal Investment Mega Bank has made the largest provision of Rs 28.45 billion, with its NPL ratio at 8.41%.

Govt Orders Action Against Sugar Black Marketing; Says No Immediate Shortage Expected

The Ministry of Industry, Commerce and Supplies has directed the concerned bodies to take action against those involved in black marketing by creating a shortage of sugar. Following India’s decision to impose restrictions on sugar exports, the ministry held discussions among stakeholders on Friday regarding the possible impact in Nepal. The ministry has stated that there is sufficient sugar stock to meet demand for the next eight months, so there will be no immediate shortage.

Around 1,200 Climbers Attempt Expeditions in Nepal This Spring Season

Nearly 1,200 climbers are currently engaged in expeditions across various mountains in Nepal during this spring season. According to the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation, a total of 1,181 climbers from 79 countries obtained permits and went on expeditions between March and May 15, 2026. Among them, the highest number of climbers are from the United States. Out of 150 American climbers who came to Nepal for mountain expeditions, 125 are men and 25 are women.

Export Of Additional 20 MW Electricity To Bangladesh Remains Uncertain

The export of an additional 20 MW of electricity to Bangladesh remains uncertain due to lack of approval from India. Nepal will export 40 MW to Bangladesh from June 15, but approval from India’s CEA, decisions of the Nepal–India Energy Secretary-level JSC, and a revised or new trilateral agreement are still pending. The Nepal–Bangladesh JSC meeting on November 27, 2025, agreed to add 20 MW and move forward with procedures. NEA has requested India’s NVVN, and the process depends on Indian approval.

Narayanghat–Butwal Road Expansion Nearing Completion

The expansion work of the Narayanghat–Butwal road section under the East–West Highway, which had remained incomplete for a long time, has now reached its final stage. The physical progress of the project has reached 91 percent, according to the officials of the Department of Roads. They stated that most of the major construction works of the project have already been completed. Only finishing works, traffic safety arrangements, service lanes, and some auxiliary structures remain to be completed.

Birgunj Customs Collects Rs 199.40 Billion Revenue In 10 Months

The Birgunj Customs Office has collected Rs 199.40 billion in revenue during the first 10 months of the current fiscal year. The Department of Customs had set a target of Rs 223.18 billion revenue collection for this period, but 89.35 percent of the target has been achieved. Customs officials said that revenue collection in the current fiscal year has been satisfactory. The main sources of revenue include imports of petroleum products, vehicles, and spare parts.

592 Cartons Of E-Cigarettes Seized In Mustang Customs Operation

The Mustang Customs Office located at Korala in Lo Manthang-1 Chhoser Nhechung on the Nepal–China border has seized 592 cartons of electronic cigarettes (vapes). The seizure was made during inspection of two freight containers carrying suspicious goods. According to the office, the containers bearing numbers Na 6 Kha 4743 and Na 5 Kha 7921 had been loaded from Chinese customs at Korala two days earlier and were stopped at the border checkpoint by Saturday evening.

Karnali Government Seeks Update On Stalled Projects

The Karnali provincial government has sought details regarding stalled and incomplete infrastructure projects whose progress has remained unsatisfactory. The Ministry of Physical Infrastructure and Urban Development has written to district offices asking for immediate submission of the status of such stalled projects. According to earlier data received from district offices, 35 projects were found to have made no progress at all.

Bagmati Province Arrears Decreases Compared To Previous Year

The arrears of Bagmati Province for fiscal year 2024/25 have decreased compared to fiscal year 2023/24. According to the audit conducted by the Office of the Auditor General on provincial ministries and bodies, the arrears amount of the province was Rs 851.78 million in FY 2023/24, whereas in FY 2024/25 it has decreased to Rs 693.79 million. However, due to lack of effective budget implementation, spending against provincial laws and the Public Procurement Act, and continued irregular practices by ministries and agencies, the total arrears of the province continues to increase every year.

Karnali Province Budget Utilization Below 30 Percent

With only two months remaining in the current fiscal year 2026/27, Karnali Province Government’s budget expenditure has not even reached 30 percent. The government has been able to spend only 29.03 percent of the total budget within 10 months, up to the mid-May. The province had presented a total budget of Rs 32.99 billion for the current fiscal year. Out of this, only Rs 9.63 billion has been spent in 10 months, according to the Provincial Accounts Controller Office.

Four-Lane Mahakali Bridge Contract Cancelled By Road Department

The Road Improvement and Development Project Directorate under the Department of Roads has cancelled the contract for the construction of a four-lane bridge over the Mahakali River. The contract agreement with Kumar–CFEC JV has been terminated for failing to carry out work as per the agreement and remaining absent from the work site for a long period. The directorate issued a public notice on Friday (May 15) informing that contract number RIP/3371334/MBP-01/016/17 for the construction of a four-lane RCC box girder bridge over the Mahakali River has been cancelled.

Nabil Bank Expands Investment Service In ‘NBank’ App

Nabil Bank Limited has expanded investment-related services in its banking app ‘NBank’. The bank stated that the service has been launched with the aim of making investment services more convenient, secure, and accessible through digital means. This service was launched following an agreement signed on May 14 between Nabil Bank and Nabil Investment Banking Limited.

Siddhartha Bank Opens Sale Of 300,000 Founder Shares

Siddhartha Bank has opened the sale of 300,000 founder shares belonging to shareholder Jagdish Kumar Agrawal. According to the notice, interested buyers can submit applications within seven days of publication during office hours along with required documents and details of the number of shares they wish to purchase.

Gold Price Falls By Rs 8,500 in Domestic Market

The price of gold has declined in domestic market today. According to the Federation of Nepal Gold and Silver Dealers Association, on Sunday the price of gold was fixed at Rs 294,000 per tola (11.66 grams). This is Rs 4,500 lower compared to the previous trading day. On the previous day, gold was traded at Rs 298,500 per tola. Similarly, on Thursday, gold was traded at Rs 302,500 per tola.