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.

Finance Minister Paudel Claims Budget Will Boost Economic Activities and Private Investment: Finance Minister Bishnu Prasad Paudel has stated that the budget unveiled on Thursday for the upcoming fiscal year 2082/83 (2025/26) will enhance economic activities in the country. Speaking at a press conference held at the Ministry of Finance on Friday, Minister Paudel emphasized that if the new budget is effectively implemented, it will lead to increased private sector investment. He also noted that the budget will create more employment opportunities and, if infrastructure projects are completed on time, Nepal’s economic growth will gain momentum. Minister Paudel projected a 6% economic growth rate under the new budget and expressed satisfaction over the feedback received so far.

Nepal Received Rs 1.445 trillion in Remittances from Foreign Employment Last Fiscal Year: Nepal received a total of Rs 1.445 trillion in remittances from foreign employment in the last fiscal year. According to Ram Pramesh Mandal, Program Officer at SaMi-Helvetas Nepal, more than 7.2 million youths have gone abroad for foreign employment after obtaining labor permits between Fiscal Year 2063/64 (2006/07) and 2080/81 (2023/24). Among them, the highest number—172,861 individuals—were from Madhesh Province. Based on data from Baisakh 2082, around 2,600 people are leaving the country daily in search of employment opportunities abroad. In Baisakh alone, 746 individuals from Bhojpur district went overseas.

Rastriya Banijya Bank Tops Income Growth Among Public Financial Institutions: Among public financial institutions, Rastriya Banijya Bank (RBB) showed the highest income growth. According to the Public Institutions Annual Status Review 2082, the total operating income of 10 financial institutions increased by 3.27% to RS. 9.066 billion compared to the previous fiscal year, with RBB leading this growth, Finance Minister Paudel said in parliament.

Government Prepares to End Printing of National ID Cards: The government is preparing to stop the physical printing of national identity cards. The currently physically printed and distributed cards will be converted into digital cards, ceasing physical card printing. Yuvraj Kattel, Director General of the Department of National Identity Card and Registration, says the department is preparing the legal and procedural frameworks. The department is responsible for collecting data and printing the cards. Currently, chips and QR codes are embedded on the printed cards, and chips require physical printing.

Government Estimates RS 1.315 Trillion Revenue Collection for Next Fiscal Year: The government estimates revenue collection of Rs. 1.315 trillion for the upcoming fiscal year to be deposited into the federal consolidated fund. Of this, RS. 165 billion is targeted to be transferred to lower levels of government. Accordingly, the current fiscal year government must collect RS. 1.48 trillion, which is 4% higher than the current target. However, this target is much higher than the revised revenue collection estimate and actual revenue collected so far.

Finance Minister Paudel’s New Budget Overlooks Agriculture Investment Decade Declaration: Finance Minister Bishnu Prasad Paudel’s budget for the fiscal year 2082/83 ignores the “Agriculture Investment Decade” declared in the current fiscal year’s policy and program. Despite the declaration, the first budget of the decade does not address it anywhere. Agriculture experts say the change in government resulted in neglect of the previous government’s priorities. The agriculture and livestock sector has been allocated RS. 5.748 billion, but the budget does not reflect any investment initiatives.

Government to Implement ‘On the Job’ and Apprenticeship Programs: The government will revise curricula and run ‘On the Job’ and apprenticeship programs based on the demand of domestic industries through the budget for fiscal year 2082/83. Finance Minister Bishnu Prasad Paudel announced this while presenting the budget in the federal parliament’s joint session on Thursday. He stated that vocational and skill development training lasting less than six months will be operated by the National Vocational Training Institute and provincial bodies, with integrated standards to ensure training quality.

Nepalese Per Capita Gross National Income Reaches USD 1,517: Nepal’s per capita Gross National Income has risen to USD 1,517, according to the Economic Survey for fiscal year 2081/82 presented by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel in parliament. Previously, the per capita income was USD 1,377.6. The economic survey estimates the country’s economic growth rate at 4.61% for the current fiscal year.

Government Investment in Public Institutions Increases by 5.86% to RS. 703.93 Billion: Government investment in public institutions has increased by 5.86% to RS. 703.93 billion, according to the Public Institutions Annual Status Review 2082 presented by Deputy Prime Minister and Finance Minister Poudel. Despite increased government investment, dividends received by the government from these institutions have decreased. Dividends fell from RS. 1.375 billion in fiscal year 2079/80 to RS. 883.56 million in fiscal year 2080/81.

Government to Strengthen Capacity of Financial Sector Regulators: According to the budget for fiscal year 2082/83, the government will launch programs to develop the capacity of financial sector regulatory bodies. The budget aims to facilitate capital flow and ease access to credit. Finance Minister Paudel said in parliament that risk management in the financial sector will be strengthened, and institutional governance will be improved. The budget aims for high, sustainable, and broad economic growth to eradicate poverty by expanding entrepreneurship, public and private investment, and employment creation.

Government Prioritizes Industrial Infrastructure to Increase Production and Productivity: The government has prioritized industrial infrastructure development to boost industrial contribution to the economy. The fiscal year 2082/83 budget emphasizes policy stability, investment protection, and good industrial relations to strengthen industrial infrastructure. According to the budget, industries approved for establishing in special economic zones and industrial areas will receive three years’ exemption from rent.

Government to Continue Programs for Commercialization and Mechanization of Agriculture: The government plans to commercialize and mechanize agriculture to increase production and productivity. Finance Minister Paudel announced new agricultural programs along with continuation of old ones in the 2082/83 budget. The Ministry of Agriculture and Livestock Development has been allocated RS. 5.748 billion for the upcoming fiscal year, slightly higher than RS. 5.729 billion allocated in the previous fiscal year.

Government Aims to Complete Postal Highway Construction within Two Years: The government aims to complete the Postal Highway construction within two years. Deputy Prime Minister and Finance Minister Paudel informed parliament that the project will boost economic development and interconnectivity in the Terai-Madhesh region. An allocation of RS. 3.56 billion has been made for this. The Kathmandu-Terai Madhesh Fast Track will be completed by fiscal year 2083/84, including construction of 37 kilometers of sub-base road, 4 kilometers of tunnels, and 60 bridges.

IT Sector Welcomes Government’s Budget Focusing on Their Priorities: The IT sector has shown enthusiasm for the upcoming fiscal year 2082/83 budget, praising it for addressing most of their demands and clarifying pending issues. Finance Minister Paudel emphasized the priority of IT in the budget announcement. The budget grants special income tax and electricity revenue exemptions to IT-based industries, hotels, and resorts. Additionally, a 75% tax exemption is provided on income from IT service exports. The budget also clarifies previously ambiguous income tax provisions.

Government to Regulate Gold and Silver Jewelry Export to Prevent Malpractices: The government will introduce legal provisions to regulate gold and silver jewelry exports and prevent malpractices. Finance Minister Paudel announced the facility of bonded warehouses for exporters of gold and silver jewelry. Industries exporting these goods will be allowed to purchase gold and silver equal to the advance foreign currency payment amounting to at least 50% of the export value.

Gandaki Province Ride-Sharing Rules Halt Public Transport: New regulations legalizing ride-sharing and self-drive services in Gandaki Province have disrupted public transportation. Following the rules’ release, vehicle operators stopped services in protest, fearing these will weaken public transport. Taxi, bus, and freight services have been fully suspended since early morning. Protesters oppose allowing private vehicles to operate like public transport and demand the government revoke the rules. They plan to block vehicles within the province from 16th of Jestha and nationwide from 19th of Jestha.

Agni Cement Industry’s Trade Declines by 25.32% Due to Slow Development: Agni Cement Industry’s trade volume declined by 25.32% in 2024 compared to 2023 due to slow development and lack of market demand. In 2023, the company traded RS. 675 million worth of goods, which dropped to RS. 402 million in 2024. In 2022, the trade volume was RS. 1.216 billion.

Government Abolishes Foreign Tourism Fee in New Budget: The government has abolished the foreign tourism fee starting from the upcoming fiscal year 2082/83. Previously, Nepali tourists traveling abroad had to pay a 5% foreign tourism fee on tour package purchases. This fee has now been removed.

Government Imposes 5% Excise Duty on Cement: The government has increased excise duty on cement to 5%, replacing the fixed RS. 220 per metric ton duty. Portland cement, alumina cement, slag cement, and super sulfate cement will all now be charged a 5% excise duty. Previously, the duty was RS. 11 per bag; it will now be calculated at 5%.

Government Continues Focus on Traditional Priorities in Energy Sector: The government continues its traditional focus on the energy sector in the 2082/83 budget. Projects such as the Budhigandaki Hydroelectric Project, which have long been announced but seen no progress, are again included. The project will be constructed under a public-private partnership. The government’s investment in the project will be converted into shares.

Gold Price Increases by RS. 700 per Tola on Friday: The gold price rose by RS. 700 per tola on Friday. The Nepal Gold and Silver Traders Association set the price at RS. 188,500 per tola. The previous day, the price was RS. 187,800 per tola. Meanwhile, silver prices dropped by RS. 15 per tola. The price fell from RS. 1,995 to RS. 1,980 per tola.