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.

Stock Market Sees Rs 7.60 billion in Transactions; NEPSE Falls by 9.14 Points:  A total of Rs 7.60 billion worth of shares were traded in the stock market today, with 18.5 million shares changing hands. On the first trading day of the week, the NEPSE index dropped by 9.14 points, settling at 2679.41. While the prices of 99 listed securities rose, 148 declined, and one remained unchanged. Investors in Om Megashree Pharmaceuticals enjoyed gains as its stock hit the positive circuit, earning Rs 102.40 per share. In addition, the share prices of Mahuli Microfinance, River Falls Power Ltd., Unnati Sahakarya Microfinance, and Suryodaya Microfinance rose by 8.25%, 7.74%, 7.24%, and 6.60%, respectively.

NRB Continues to Withdraw Excess Liquidity from Banks: With excess liquidity prevailing in banks and  financial institutions, Nepal Rastra Bank is aggressively mopping up funds. On Jestha 7 (May 21), the central bank collected Rs 5 billion at an interest rate of 2.99%, and on Sunday, it plans to withdraw an additional Rs 3 billion. Currently, banks have 30% loan-eligible investments. To manage liquidity, the central bank continues to issue deposit collection instruments. Due to liquidity management challenges, banks are placing more funds than needed even at low interest rates.

Bangladeshi Company Selected to Conduct Asset Quality Review of 10 Commercial Banks in Nepal: Nepal Rastra Bank has appointed a Bangladeshi company to conduct an asset quality review (loan portfolio review) of Nepal’s ten largest commercial banks. Dhaka-based Howladar Yunus & Company was selected as the technically qualified firm to carry out the examination, according to Nepal Rastra Bank’s announcement. Other shortlisted firms included companies from Sri Lanka and India. The review is being conducted as part of Nepal’s commitment to the International Monetary Fund (IMF) under the Extended Credit Facility (ECF) program, which requires international auditors to assess the financial health of the country’s major banks.

VAT Registration of Thousands of Taxpayers Suspended Simultaneously for Not Submitting Tax Returns: Thousands of taxpayers who failed to submit their Value Added Tax (VAT) returns have had their registrations suspended at once. The Inland Revenue Department had published a public notice on Baisakh 11 (April 24) disclosing the names of taxpayers who had not submitted their tax returns for six consecutive months. The department had also issued a 15-day ultimatum. The notice instructed the concerned taxpayers to contact their respective Inland Revenue Office or Taxpayer Service Office, where their business is registered, and regularize their transactions. However, as most taxpayers failed to submit the required details within the given timeframe, the department stated that their VAT registrations were suspended as per the decision made on Jestha 9 (May 23).

Minister Dahal Announces Gwarko Flyover to be Completed by End of Jestha: Minister Devendra Dahal stated that the flyover under construction in Gwarko, Lalitpur, will be completed by the end of Jestha (mid-June). He expects vehicle operations to begin on the flyover by then. During an on-site inspection on Sunday morning, the minister instructed the construction company to expedite remaining work. “There is no room for delay now,” said Minister Dahal. “Unless natural disasters intervene, vehicles should run on the flyover by the end of Jestha. This project has been long awaited.”

Foreign Employment Department Warns Action Against Consultancies Sending Workers Abroad Illegally: The Foreign Employment Department has warned that anyone found sending Nepali workers abroad in violation of the law will face legal action. The department has received complaints that some individuals, educational consultancies, travel agencies, training providers, and language institutes are illegally collecting passports and documents and sending workers abroad using fake documents.

NCC and NIA Disagree on Implementing VAT Multiple Rates: Two major private sector organizations, Nepal Chamber of Commerce and Nepal Industrial Association, stand on opposite sides regarding the implementation of multiple VAT rates. Previously, both the Chamber and the Federation supported multiple VAT rates, but recently, the Chamber has shifted its stance due to government resistance, while the Industrial Association continues to advocate for multiple VAT rates.

Government’s Ethanol Blending Plan in Petrol to be Implemented Within This Year: The government’s plan to mix ethanol in petrol, which has failed for over two decades, is now set to be implemented within the current fiscal year. The draft procedure for ethanol blending in petrol has been sent to the Ministry of Finance and the Ministry of Law for review. Industry, Commerce, and Supply Ministry sources informed that the process is moving forward to implement the policy this year. “The procedure for mixing ethanol in petrol has been prepared. The draft has been sent to the Ministries of Law and Finance for their feedback,” said the source.

Nepal’s Service Sector Found to Be Most Attractive to Foreign Investors: According to the latest data from the Department of Industry, Nepal’s service sector has been found to be the most attractive area for foreign investors. Foreign investors have shown the highest commitment to invest in Nepal’s service sector. According to the Department’s data up to mid-April, the highest amount of foreign direct investment (FDI) commitment has come in the service sector. During the review period, a total investment commitment of NPR 5.7 billion was made, of which 53% was committed to the service sector and 37% to the tourism sector. Compared to other sectors, these areas have attracted the most investors.

Executive Director of Nepal Rastra Bank Dr. Prakash Kumar Shrestha Retires: Dr. Prakash Kumar Shrestha, Executive Director of Nepal Rastra Bank and a current member of the National Planning Commission, has taken mandatory retirement as of Saturday due to reaching the age limit. According to Nepal Rastra Bank service regulations, general employees have a 30-year service limit, directors have 12 years, executive directors 7 years, and mandatory retirement occurs at age 58. Dr. Shrestha retired after 27 years of service.

Bagmati Province Prepares Final Draft of Policy Program for Fiscal Year 2082/083: The Bagmati Provincial Government has finalized preparations for the policy program of the upcoming fiscal year 2082/083. The draft, prepared by subject ministries, has been discussed with various stakeholders before finalization. The government is expediting the submission of the policy program to the Provincial Assembly scheduled for Jestha 14 (May 28). The assembly session will begin at 1 pm, and the provincial chief, Deepak Prasad Devkota, has been formally invited to deliver the policy speech.

Government Calls for Applications for Chairperson of National Cooperative Regulatory Authority: The government has invited applications for the post of chairperson and expert members of the National Cooperative Regulatory Authority. The public notice issued on Sunday states that applications are open from Sunday onward as per the Cooperative Act 2074 and the appointment criteria for chairperson and expert members of the Authority 2082. Qualified and interested candidates have been asked to apply by Jestha 25.

NTB to Remove CAA’s Representation Due to Poor Attendance of Director Adhikari: Due to the poor attendance record of Civil Aviation Authority Director General Pradeep Adhikari, who rarely attends even one or two meetings a year, his representation on the Nepal Tourism Board is set to be removed. Adhikari has been director general for over three years, with only eight months remaining in his term. A proposal to remove him early has been made. Adhikari is a member of the Tourism Board’s Management Committee.

Dugad Spices & Food Products Records NPR 1,185 million Business in First Six Months of Current Fiscal Year: Dugad Spices & Food Products Pvt. Ltd., the distributor of Century brand products in Nepal, recorded a business turnover of NPR 1,185 million during the first six months of the current fiscal year. The company’s annual turnover was NPR 2,199 million in 2024 and NPR 2,142 million in 2023. It also introduced several new products in 2024. Established in 1999, Dugad Spices manufactures and sells traditional spices, snacks, namkeen, pickles, jams, jellies, chocolates, dry fruits and nuts, breakfast cereals, and CTC tea in the Nepali market.

Mobile Phone Imports Worth Rs 2.4 billion in First 10 Months of Current Fiscal Year: According to Customs Department data, 1,528,000 mobile phones worth NPR 24 billion were imported until the end of Baisakh (mid-April). The government collected NPR 447 million in customs revenue from these imports. Mobile imports have decreased by NPR 475 million compared to the same period last year when 1,785,000 units were imported worth NPR 2,876 million. The government collected NPR 536 million in customs revenue during that time.

Nepal Insurance Authority Madhesh Province Office Collects Rs 2.16 billion in Non-Life Insurance Premiums in Nine Months: The Nepal Insurance Authority’s Madhesh Province office collected Rs 2.16 billion in non-life insurance premiums during the first nine months of the current fiscal year. During this period, 259,475 insurance policies were issued. A total of 7,124 non-life insurance claims amounting to Rs 1.60 billion were filed. Out of these, Rs 1.08 billion was paid to 5,585 claimants.

Dairy Industry’s Outstanding Payments to Farmers Exceed Rs 5 billion: After dairy industry’s outstanding payments to farmers surpassed Rs 5 billion during the dry season, the Ministry of Agriculture and Livestock Development held a discussion last Tuesday with Agriculture Minister Ramnath Adhikari present. Secretary Deepak Kharel, Dairy Development Corporation, Department of Animal Services, Dairy Industry Association, Nepal Dairy Association, and Central Milk Producer Cooperative Federation officials participated. Secretary Kharel stated that some cooperatives have invested the money elsewhere instead of paying farmers.

Madhesh Province to Introduce Policy Program to Create 100,000 Jobs: Industry, Commerce and Tourism Minister of Madhesh Province Basant Kushwaha announced the provincial government’s plan to create 100,000 new jobs. Speaking at an event organized by Nepal Hotel and Tourism Entrepreneurs Federation in Birgunj, he said the government is preparing the necessary groundwork to implement this policy. The program aims to generate employment through investments in agriculture, industry, and tourism sectors in Madhesh Province.

Lumbini Province to Prioritize Completion of Incomplete Projects Over New Initiatives in FY 2082/083: The Lumbini Provincial Government has decided to prioritize completing ongoing projects over launching new ones in the fiscal year 2082/083. In a discussion with Provincial Assembly members, Chief Minister Chetan Narayan Acharya said the government is not inclined to initiate many new projects but rather focus on completing incomplete ones. He assured that the budget will be realistic and aligned with ground realities.

Marsyangdi Hydroelectric Plant in Tanahun Now Producing at Full Capacity: The Marsyangdi Hydroelectric Plant located in Aanbukhaireni Rural Municipality-4 of Tanahun has started producing electricity at full capacity. While only 40% of the electricity was produced during the winter, the plant has now been operating at full capacity since the start of the rainy season. The plant’s chief engineer, Pashupati Gautam, stated that electricity production has increased from 40%, which was about 30 megawatts in winter, to the full capacity of 69 megawatts. He explained that the production had decreased during the dry season due to low river flow, but has started increasing again with the onset of rainfall.

Nepali Orthodox Tea Holds Significant Share in Exports, Shows Good International Market Prospects This Year: Nepali orthodox tea, which holds an important share among export commodities, has shown good prospects in the international market this year. Tea producers report that the export of the first flush (first pluck) of tea has also been good this year. According to tea industrialists, the first flush prepared by most tea factories in Ilam has already been exported to India and a third country. Tank Dahal, owner of Greenhill Tea Industries, stated that he has exported 8,000 kilograms of first flush tea. “This year, I sent the first flush to India. Almost all other factories have also exported their produce,” Dahal said.

Gold Price Rises by Rs 1,400 Per Tola on First Trading Day of the Week: On the first trading day of the week, gold prices surged by Rs 1,400 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold stood at Rs 191,800 per tola on Sunday. On the previous Friday, the price of hallmark gold was Rs 190,400 per tola. Meanwhile, the price of silver remained stable on Sunday at Rs 2,005 per tola, the same as on Friday, the association reported.