KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The week’s developments reveal a fragile economic and fiscal landscape marked by a sharp 0.53% slide in the NEPSE amid mixed sectoral performance, while political leaders openly acknowledge empty coffers and press for urgent reforms; Finance Minister Poudel’s engagement with development partners and the push for lower loan rates and adjusted tax brackets aim to bolster recovery, even as SEBON fast-tracks IPO approvals and NEA extends review deadlines to ease corporate strain.
Concurrently, energy and infrastructure projects—from Upper Tamakoshi’s deepening losses and new hydropower ventures in Sindhupalchok to the proposed BOOT privatizations—highlight both the sector’s potential and financial challenges, and social priorities surface through initiatives like Gaja Lake tourism and seed banking in Tulsipur. Legal and governance concerns are underscored by multiple Supreme Court writs and a CIAA corruption case, while shifts in trade dynamics—illegal Gutkha smuggling and nascent domestic battery manufacturing—signal changing market and regulatory pressures.
Stock market declines by double digits on Tuesday
The NEPSE index fell by 14.12 points to close at 2,634.86 on Tuesday, with total trades amounting to NPR 9.63 billion. Of the listed firms, 77 saw their share prices rise, 168 experienced losses, and one remained unchanged. Crete Micro Life and Om Megashree Pharmaceuticals hit the upper circuit limit, while Gurans Laghubitta Financial Institution suffered the steepest decline. Sectoral gains were noted in life insurance, development banks, and manufacturing and processing.
Gold prices drop in the domestic market; silver prices increase
Reflecting a fall in international rates, gold has dipped by NPR 2,000 per tola to NPR 184,800, while silver has risen by NPR 10 per tola to NPR 1,970, according to the Federation of Nepal Gold and Silver Dealers Association. Last Friday, gold was NPR 186,800 and silver NPR 1,960 per tola.
Ministry of Finance holds discussions with development partners on upcoming budget
On Tuesday, Finance Minister Bishnu Poudel convened bilateral and multilateral aid agencies to review the next fiscal year’s budget. Poudel highlighted improving economic indicators and stressed the importance of ongoing reforms, citing ordinances, High-Level Economic Reform Commission recommendations, and new policies as key drivers of progress.
Prime Minister Oli claims state treasury is empty
Speaking at the inauguration of the Cinepa Film Shooting Studio in Baluwatar on Tuesday, PM KP Sharma Oli asserted that the national coffers are depleted. He contrasted this with his previous tenure, when ample funds enabled the launch of health centers in every municipality. Oli lamented that the current financial strain makes even announcing new initiatives daunting, adding, “People get very excited even for small projects. They say, ‘We are here,’ and collect donations.”
Loan interest rates drop to historic low
Weighted average loan interest rates have plunged to their lowest level since Nepal Rastra Bank began tracking them in Ashoj 2069 B.S., when they stood at 12.94%. Deposit rates, which were 4.14% at the time, have also shifted. By Poush 2079 B.S., the base rate was 9.38%, with loan and deposit averages at 12.56% and 5.13%, respectively.
Upper Tamakoshi Hydropower’s accumulated losses reach 12.18 billion rupees
By the end of Chaitra, Upper Tamakoshi Hydropower reported an accumulated loss of NPR 12.18 billion, up from NPR 8.69 billion in the same period last year. The company’s share premium remains at NPR 913.7 million, unchanged from the previous fiscal year. Quarterly losses rose from NPR 1.39 billion last year to NPR 2.06 billion this year.
NEA extends administrative review deadline for dedicated feeder and trunk line customers
The Nepal Electricity Authority has pushed the deadline for administrative review applications—under Clause 55(2) of the Electricity Distribution Regulation 2078—for industries on dedicated feeders and trunk lines to the end of May. Applicants must deposit 5% of their outstanding bill, either in cash or via a one-year bank guarantee.
IPO fast track process to be implemented amidst two-year freeze
After a two-year hiatus in issuing IPOs, SEBON plans to introduce a fast-track approval system and hold sales managers accountable. Inspections of all pending project files are underway, which SEBON officials cite as the reason for current delays.
Private sector calls for adjustment in income tax limits
The FNCCI and CNI have urged the government to cap the top personal income tax rate (including surcharges) at 30% and raise the tax-exemption threshold to NPR 800,000 for individuals and NPR 1 million for couples in the next budget.
Former Finance Minister Karki advocates for diversification of Himalayan tourism
NC MP and ex-finance minister Gyanendra Bahadur Karki urged a shift from exclusive focus on Himalayan tourism, noting glacial melt and environmental concerns. He recommended developing religious and cultural tourism, such as promoting the Ram Janaki Temple to attract Indian visitors.
Supreme Ccourt issues show cause order against former governor Mahaprasad Adhikari
A single bench led by Judge Binod Sharma on Tuesday directed Mahaprasad Adhikari to explain why he should remain on the Governor Recommendation Committee. The court scheduled a hearing for May 17 after receiving a writ petition on May 11 challenging Adhikari’s eligibility.
Govt receives 50-point recommendation for strengthening federalism
The Federalism and Localization Center submitted a 50-point proposal to Finance Minister Bishnu Prasad Paudel at Singha Durbar, recommending that all provincial and local grants be overseen by the National Natural Resources and Fiscal Commission to enhance inter-governmental coordination.
Writ filed against Bishwo Poudel’s potential nomination as governor
Advocates Prativa Upreti and Bishal Thapa filed a writ at the Supreme Court contesting economist Dr. Bishwo Poudel’s prospective appointment as Nepal Rastra Bank governor, arguing that appointing a political party member violates the NRB Act. The petition awaits registration.
Construction of 45 MW hydropower project begins in Sindhupalchowk
Brahmayani Hydropower Company commenced work on a 45 MW plant in Jugal Rural Municipality-2 with traditional rituals and a tunnel-entrance blast led by CDO Kiran Thapa. The project will channel water from the Bramhayani River through a 5.5 km tunnel to a powerhouse in Dipu, Tembathan. Access roads and camps are already in place.
STC Energy Industries begins production of vehicle batteries in Nepal
Hetauda-based STC Energy Industries Pvt. Ltd. has started manufacturing Nepali-branded vehicle batteries at its plant in the Hetauda Industrial Area, aiming to meet domestic demand and export to India.
CIAA files corruption case against former Bara postal chief and six others
The CIAA has sued ex-Bara Postal Office chief Jay Lal Prasad Sah and six accomplices in the Special Court for embezzlement and mismanagement of Postal Savings Bank funds since 2060 B.S. They allegedly diverted public deposits without proper entries in official cash registers.
Privatization of eight hydropower proposed
The Department of Electricity Development has invited EOIs until Jestha 25 for BOOT-model privatization of eight projects totaling 365.42 MW, including Beni Kaligandaki (50.5 MW), Dudhkoshi-4 (47 MW), Humla Karnali (61.02 MW), Inkhu Khola (21.4 MW), Kaligandaki Upper (65 MW), Loti Karnali PROR (49.5 MW), Lower Hongu (30.2 MW), and Sankhuwakhola-1 (40.8 MW).
Gaja Lake in Baglung emerging as a new tourist attraction
At 2,500 m in Jaimini Municipality-3, Gaja Lake and the under-construction Siddha Baraha Temple are drawing visitors. Local authorities and communities have installed a swing and photography spot overlooking the lake.
Beni-Pakhapani road section reopened after 15 years
The Neptachaur–Patlekhet stretch of the Beni-Pakhapani road in Myagdi, first opened in 2010, has been upgraded with wider lanes, gabion walls, drainage, and paving under Beni Municipality’s current road development plan.
Open border fuels illegal trade of Indian Gutkha in Nepal
DG Kumar Dahal of the Commerce, Supplies, and Consumer Protection Department warned that the open Nepal-India border enables large-scale smuggling of Rajnigandha Gutkha. With an annual market worth NPR 10 billion, only NPR 3 billion is legally imported; the rest enters illicitly.
Hyundai launches Creta EV in Chitwan
Laxmi Intercontinental Pvt. Ltd. unveiled the Creta EV in Bharatpur, Chitwan, handing over five units to customers. The distributor plans to tour cities nationwide to promote electric mobility and engage dealers directly.
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