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:

PM Oli Highlights Agriculture as Essential and Crucial for Human Life: Prime Minister KP Sharma Oli has emphasized the agriculture sector as essential, indispensable, and the most important sector for human life. Speaking at the closing session of the second conference of the South Asian Farmers Federation on Tuesday, Prime Minister Oli stated,

“More than 60 percent of the population is dependent on agriculture, yet its contribution to the national economy remains low. Agriculture is the most important sector. It is the most crucial and indispensable sector for life, more important than any other profession or business,” he said.

NEPSE Index Gains 27.14 Points on First Trading Day of 2082: On the first trading day of the year 2082, the NEPSE index rose by 27.14 points. With this increase, the index reached 2,689 points. During trading hours, the index had peaked at 2,704 points at 1:54 PM, marking the highest point of the day. Not only did the index increase, but there was also a notable rise in the total transaction amount. Compared to NPR 6.28 billion worth of transactions on Sunday, today’s turnover reached NPR 8.54 billion.

Prices of 212 companies went up, while 34 saw a decline. Investment and development bank sectors showed particular appeal, with the investment sector rising by 2.71% and development banks by 2.46%. Other sectors also posted gains: banking (0.48%), finance (1.59%), hotels and tourism (1.99%), hydropower (1.47%), life insurance (0.81%), manufacturing (1.22%), microfinance (0.60%), non-life insurance (1.07%), and others (0.61%).

Middlemen Have Access to the Prime Minister’s Bedroom, Says Gagan Thapa: Nepali Congress General Secretary Gagan Thapa has alleged that middlemen now have direct access to the Prime Minister’s bedroom, symbolizing the deep penetration of vested interests into the country’s highest political leadership.

Speaking at a program in Kathmandu on Tuesday, Thapa drew a sharp distinction between the private sector and middlemen, stating that the current economic problems stem not from private enterprises but from these intermediaries. “Our problem is not the private sector—it is the middlemen. They are the reason our economy is in trouble,” Thapa said. “I’m not naming any particular prime minister, but these middlemen have managed to reach even the bedroom of the leadership,” he added, implying deep-rooted collusion between power holders and vested interests.

Govt Diverts Budget from Idle Projects to Fund 58 Active Schemes:

The government has reallocated funds from underperforming or inactive projects to support 58 active ones in the current fiscal year 2080/81. According to the Ministry of Finance, Rs 3.38 billion was transferred in Falgun alone after the allocated budget for those projects was exhausted. Most reallocations went to development works under the Ministry of Physical Infrastructure and Urban Development. Additionally, Rs 2.38 billion was released for 46 new projects in the same month. The government also provided Rs 2.5 million in financial aid and approved 17 new laws and guidelines that may carry fiscal implications, requiring ministry approval.

Land Revenue Rises Despite Decline in Transactions, Driven by High-Value Urban Property Sales:

Despite a slight decline in land and housing transactions, government revenue from property dealings increased in the first nine months of FY 2024/25. According to the Department of Land Management, 374,171 transactions generated Rs 33.22 billion in revenue, up 13.81% from the same period last year. In Chaitra alone, 49,832 deeds yielded Rs 4.39 billion—the highest monthly collection this fiscal year. Officials attribute the rise to sales of high-value urban properties, particularly in Kathmandu Valley. In contrast, eastern Tarai regions led in transaction volume. Lalitpur’s Lagankhel office collected the most revenue, indicating sustained demand in high-priced city areas.

Government Spending Exceeds Revenue by Rs 142 Billion in First Nine Months of FY 2024/25:

Government spending has surpassed revenue by Rs 142 billion in the first nine months (Shrawan to Chaitra) of the current fiscal year 2024/25, according to data from the Office of the Auditor General. Revenue collection stood at Rs 831 billion, while total expenditure reached Rs 998 billion. The government achieved only 58% of its annual revenue target of Rs 1.419 trillion. In Chaitra alone, spending was Rs 159 billion against Rs 111 billion in revenue. The data also shows that while 59% of recurrent expenditure was met, only 29% of the allocated capital budget of Rs 353 billion was utilized.

NNRFC Sets New Borrowing Limits for All Three Tiers of Government for FY 2025/26: The National Natural Resources and Fiscal Commission (NNRFC) has recommended internal borrowing ceilings for federal, provincial, and local governments for fiscal year 2025/26. The federal government may borrow up to 5% of the estimated GDP, while provincial and local governments can borrow up to 12% of their total revenues, including fiscal transfers. The commission emphasized borrowing should be strictly for development projects with long-term economic returns, not for recurrent expenses. Projects must undergo cost-benefit analysis and show strong economic viability. It also mandated legal compliance for subnational loans, marking a shift from previous informal borrowing practices by provinces.

Supreme Court Temporary Halts Implementation of Revised Age Criteria for Governor Appointments: The Supreme Court has issued a temporary interim order halting the implementation of revised criteria for appointing officials and members of public bodies under the Finance Ministry. This effectively blocks the government from appointing a new Nepal Rastra Bank Governor under the updated rules. The revision, made on Falgun 27, removed age limits (30–65 for officials and 35–65 for members), prompting legal challenges. Advocates Bishal Thapa and Pratibha Upreti filed a writ petition against the move. Justice Nityananda Pandey’s single bench issued the order, summoning both parties for a hearing and asking the government to justify the amendment.

Commission Urges Rs 10 Billion Allocation to Refund Troubled Cooperative Deposits: The High-Level Economic Reform Recommendation Commission has urged the government to allocate Rs 10 billion to refund savings of the public trapped in 22 problematic cooperatives. Despite prior promises, no action has been taken. While the 2024/25 budget pledged refunds up to Rs 500,000 by using operators’ assets as collateral, implementation remains stalled. Over 500 cooperatives reportedly owe the public more than Rs 200 billion. Protests continue, and the proposed National Cooperative Regulatory Authority is not yet functional. The commission also recommends limiting cooperatives’ operations to a single local level and capping savings transactions to prevent misuse and systemic risks.

NRB to Introduce New Five Rupee Note Starting Today: Nepal Rastra Bank has announced the introduction of new five-rupee notes in circulation starting today. The central bank has issued a notice stating that the new five-rupee note will be of the same size and color as the previous ones.

The new note will feature an image of Mount Everest on the left side of the front, a watermark of the rhododendron (Laliguras) on the right, the signature of then-Governor Mahaprasad Adhikari, and the series number in Nepali with the year 2081 B.S. written at the bottom border.

Indications of Improvement in High Earners’ Income: There are signs of improvement in the income of high earners, as indicated by an increase in revenue collection from taxpayers with annual business transactions exceeding one billion rupees. This increase in revenue collection is reported by the Large Taxpayer Office, which manages the tax administration for high-income individuals and businesses.

In the month of Chait, the office collected a total of 33 billion rupees in revenue. This represents a 22% increase in revenue compared to the same month last year. The months of Poush, Chaitra, and Asar are considered significant for income tax collection. According to the Income Tax Act, taxpayers are required to pay 40% of their estimated tax liability for the respective fiscal year in Poush. Similarly, an additional 30% each is due in Chaitra and Asar.

NNRFC Recommends Internal Debt Limits for Upcoming Fiscal Year: The National Natural Resources and Finance Commission has recommended the internal debt limit for the three levels of government for the upcoming fiscal year. For the upcoming fiscal year, the federal government is allowed to raise internal debt up to 5% of the country’s Gross Domestic Product (GDP).

Meanwhile, provincial and local governments can raise internal debt up to 12% of their total revenue, including their internal sources and financial transfers. The commission’s recommendation states, “Based on an analysis of the country’s overall economic situation, revenue and expenditure projections, and market liquidity, the government will be able to raise internal debt up to 5% of the projected GDP for the fiscal year 2082/83.”

Government Invests Rs. 11.52 billion in Foreign Institutions: The government has invested Rs. 11.52 billion in institutional shares of foreign organizations. According to the Office of Public Debt Management under the Ministry of Finance, the government has been making share investments in multinational and regional financial institutions since their establishment, through agreements with such organizations.

The government has invested in institutions like the World Bank, International Monetary Fund (IMF), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), SAARC Development Fund (SDF), and the International Bank for Reconstruction and Development (IBRD).

NEA Clarifies Power Interruptions Not Due to Load-Shedding: The Nepal Electricity Authority (NEA) has clarified that power interruptions caused by storms and seasonal factors should not be considered as load-shedding. In a statement released on Monday, the NEA emphasized that the disruptions caused by storms and pre-monsoon adverse weather conditions were exaggerated and misleading when referred to as load-shedding.

The statement further noted, “There has been a serious concern raised regarding the exaggerated and misleading statements on social media, which claim that the power outages due to storms and pre-monsoon weather conditions in various parts of the country are a result of load-shedding.” The NEA also mentioned that work is ongoing day and night from distribution centers across the country to restore power in affected areas, and that supply has been resumed in most places.

Foreign Investment Commitment Reaches Rs. 57.97 billion in Current Fiscal Year: Foreign investment commitments worth Rs. 57.97 billion have been received from Shrawan to Chaitra in the current fiscal year. According to data released by the Department of Industry, approximately Rs. 58 billion in Foreign Direct Investment (FDI) commitments have been secured during this period.

Compared to the same period last year, there has been an increase in foreign investment commitments. This year’s commitment shows an increase of Rs. 27.86 billion over the same period last year. The department’s data indicates that foreign investment commitments during the same period of the previous fiscal year amounted to Rs. 30.11 billion.

Construction Sector Receives the Highest Loan Flow in Current Fiscal Year, Reports NRB: From the start of the current fiscal year (Shrawan to Falgun), loans in the banking and financial sector show that the highest proportion, 9.5%, has been directed toward the construction sector. According to Nepal Rastra Bank’s data, loans worth Rs. 19.78 billion have been disbursed in the construction sector alone.

During the same period in the previous fiscal year, loans amounting to Rs. 12.24 billion were provided to the sector.Within the construction sector, the highest loan flows have been allocated to residential construction and infrastructure projects such as highways and bridges. Loans for highway and bridge construction have increased by 19.8%. As of the Shrawan to Falgun period of the current fiscal year, loans totaling Rs. 20.58 billion have been provided, according to the bank’s data.

SpiceJet and Air India Express to Resume and Expand Flights to Nepal: Two Indian airlines have scheduled regular flights to Nepal. SpiceJet, which is preparing for regular service from Delhi, will begin flights to Kathmandu from Baisakh 27. The airline has finalized its first flight on the Delhi–Kathmandu–Delhi route and is arranging flight operations accordingly.

SpiceJet has received approval for a schedule of daily flights, marking its return to Nepal’s aviation market after six years. Additionally, regular flights from Bangalore to Nepal will commence. Until now, only Nepal Airlines has operated on this route, but Air India Express is now set to begin service as well. According to the Civil Aviation Authority of Nepal, Air India Express has received approval for its summer flight schedule and will begin flights from Asar 17.

Temporary and Contract Employees in Government Bodies Now Eligible for Social Security Scheme: Temporary and contract employees working in government agencies will now be eligible to participate in the social security scheme. A notice regarding this has been published in the official gazette on the first day of the new year, 2082.

Employees working in institutions, corporations, boards, authorities, and organizations fully or partially owned by the government, Nepal government, provincial governments, or local bodies will be eligible to join the scheme. It has been arranged that such employees, listed as contributors in the Social Security Fund, will be able to participate in the scheme by considering at least 60% of their basic salary as the minimum salary for the scheme, based on the salary they receive.

Supreme Court Orders Closure of Brick Kilns in Panchkhal, Kavre: The Supreme Court has issued an interim order to shut down the brick kilns operating in Panchkhal Municipality, Kavrepalanchok. The decision to shut down the brick kilns was made by a bench of Supreme Court justices Hari Phuyal and Sharanga Subedi following a hearing held five years after the original petition was filed.

Locals had filed a writ petition in the Supreme Court, citing severe environmental and public health impacts. The Supreme Court issued the interim order after hearing the petition. The writ petition, filed by locals and activist Shrikrishna Dhimal along with others, named Panchkhal Municipality, the Ministry of Forests and Environment, the Ministry of Education, and the Department of Archaeology as respondents.

Compensation Fixed for Locals Affected by Budhigandaki Hydropower Project: Compensation has been determined for residents affected by the Budhigandaki Hydropower Project. The decision was made with the involvement of representatives from Chumnubri Rural Municipality, the project developer Sahas Urja, and local stakeholders.

According to Sahas Urja’s Managing Director, Him Pathak, land within the settlement area of Salleri in Ward No. 3—where the dam is to be built—has been valued at NPR 300,000 per aana. “For plots smaller than four aana, the compensation has been set at NPR 400,000 per aana, while land located outside the settlement area has been valued at NPR 150,000 per aana,” Pathak stated. It is estimated that compensation will need to be provided for around 80 ropani of land.

Geological Study of Kathmandu-Kerung Railway Line Nears Completion: The geological study of the Kathmandu-Kerung railway line has entered its final phase. The study began with technical and financial assistance from the Chinese government. The feasibility study is being conducted in the districts of Kathmandu, Nuwakot, and Rasuwa, which will be directly connected by the railway line. In these three districts, drilling has been completed at 75 out of 80 locations, with soil samples extracted.

According to sources from the Department of Railways, 90% of the soil testing has been completed. In eight locations, drilling was required to a depth of 400 meters, and soil has been extracted at seven of these sites. Samples of soil, stone, water, and rock have been collected from selected locations in all three districts where the railway line is planned to pass.

Night-Time Road Closure on Narayanghat–Butwal Section Begins for Expansion Work: Starting Monday, the road section at Daunne under the Narayanghat–Butwal stretch of the East-West Highway will remain closed during night hours to expedite the road expansion project. Authorities aim to complete the work swiftly by carrying out construction during night-time.

According to Engineer Shiva Khanal, the Information Officer of the Narayanghat–Butwal Road Project (Eastern Section), vehicular movement on the Daunne section will be halted from 11 PM to 5 AM daily starting Monday. This night-time closure will continue until Baisakh 15 during which the road will undergo maintenance and widening for six hours each night.

Microfinance Victims Warn of Stronger Protests as Government Fails to Address Their Demands: Microfinance victims have warned of intensified protests, accusing the government of ignoring their peaceful voices and failing to address their concerns. During a press conference held in Kathmandu on Tuesday, they expressed frustration over the government’s response, which they claimed involved suppression rather than addressing their demands.

Maniram Gyawali, President of the ‘Cooperative, Microfinance and Financial Issues Resolution National Campaign Federation,’ warned that the peaceful protests, which have been ongoing for 40 months, should not be taken lightly by the government and political parties. He emphasized that people fighting for their rights never lose, and even in judicial struggles, rulers are often forced to surrender.

Gold Price Drops by Rs. 1,700 per Tola: The price of gold has decreased by Rs. 1,700 per tola on Tuesday. The Federation of Nepal Gold and Silver Dealers’ Association has set the price of gold for today at Rs. 184,300 per tola.

The previous day, the price was Rs. 186,000 per tola. This price is the highest recorded so far. Silver has also decreased by Rs. 15 per tola. The price of silver, which was Rs. 1,960 per tola the previous day, is now Rs. 1,945 per tola.