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.

Birgunj Dry Port Collects Over Rs 36.83 Billion in Nine Months:

The Birgunj Dry Port customs office at Sirsiya collected Rs 36.83 billion in revenue over the first nine months of the current fiscal year, achieving 61.34% of its annual target of Rs 60.04 billion. Revenue steadily increased month-on-month, with the highest collection of Rs 4.68 billion in Fagun. Information Officer Yubaraj Bhattarai said the office has seen consistent growth in recent months. Officials remain optimistic about reaching the annual target by the end of the fiscal year.

Koshi Summit Attracts NPR 152 Billion Investment Across 46 Projects:

The first Koshi Investment Summit secured NPR 152.26 billion in commitments across 46 projects, all backed by domestic investors. Major deals include Rajendra Shrestha’s NPR 5.6 billion solar project, Galbahadur Dhungana’s NPR 26 billion urea plant, Santoshmani Nyaupane’s NPR 32 billion clinker industry, and Basanta Rimal’s NPR 25 billion Mountain Pathway. Arun Subedi will invest NPR 16 billion in the Barah Cable Car. Hospitality highlights include Bijay Chaudhary’s NPR 2.3 billion Exis Hotel and Pratyush Raut’s NPR 2.33 billion Royalton Hotel. Additional projects span EV assembly, agro-processing, biofertilizers, herbal industries, cold storage, and international-standard hospitals.

Nepal Sees Record Number of Foreign Tourists in April 2025:

In April 2025, Nepal witnessed the highest-ever number of foreign tourists, with 116,490 visitors arriving in the country, according to data from the Nepal Tourism Board. The highest number of tourists came from India (25,933), followed by the United States (10,053), China (9,037), and the United Kingdom (6,838). However, despite the overall growth, the number of Indian and Chinese tourists has not significantly increased compared to previous periods. The Nepal Tourism Board highlighted this record-breaking influx as a positive indicator for Nepal’s tourism industry.

Sideways Stock Market Reflects Policy Paralysis, Investor Confidence Remains Low:

Nepal’s stock market has remained stagnant between the 2,500–2,800 NEPSE index range for months, largely due to government indecision and policy instability. Delays in appointing a new central bank governor and inconsistent fiscal and monetary policies have weakened investor confidence. Experts argue that despite budget allocations, no concrete strategies have been implemented to stabilize the market. The dominance of weak companies in the secondary market and lack of incentives for strong firms to list have added to the problem. Female participation remains low due to risk aversion and limited options. Investors await structural reforms and clearer policy direction for recovery.

Upper Thulo Khola Hydroelectric Project Nears Completion in Magdi:

The 22.5 MW Upper Thulo Khola Hydroelectric Project in Raghuganga Municipality-7, Magdi, is 90% complete. Initiated three years ago by Thulo Khola Hydropower Limited, the project has finished its dam, powerhouse, and pipeline installations. Equipment installation and transmission line work are in the final stages. However, road construction delays to connect the site with Beni have pushed back the test production schedule to Baishakh 2082. The project includes a 2,900-meter pipeline, and its electricity will connect to the national grid through a 220 kV transmission line, in collaboration with neighboring projects.

Hydropower Projects Stalled as IPO Freeze Blocks Rs 2.3 Trillion Investment:

Hydropower companies in Nepal have been unable to issue IPOs and rights shares for 21 months. The Securities Board of Nepal (SEBON) halted approvals, citing a directive from the Public Accounts Committee requiring over 90% real net worth for IPO issuance. This has affected 43 companies’ IPOs worth Rs 20 billion and rights shares worth Rs 4.5 billion. Independent power producers say projects are halted due to lack of public funding. SEBON claims delays were due to leadership gaps, while lawmakers argue regulatory misinterpretation. A Supreme Court verdict and stalled implementation of energy roadmaps have worsened the crisis.

Nepal’s GDP Hits Rs 61 Trillion with 4.61% Growth in FY 2081/82, Driven by Energy, Trade, and Remittances:

Nepal’s economy is set to improve significantly in FY 2081/82, with GDP at consumer prices projected to reach Rs 61.07 trillion, up from Rs 57.09 trillion last year. According to the National Statistics Office, the growth rate at basic prices is estimated at 3.99%, and 4.61% at consumer prices—marking a rebound from previous years. While agriculture dipped slightly, non-agricultural sectors showed robust performance, especially electricity and gas (13.82% growth) and transport (9.45%). The non-agriculture sector is expected to grow by 4.28%, outpacing agriculture’s 3.28%. Wholesale and retail trade remains the top GDP contributor at 14.55%. Remittances are projected to contribute 25.89% of GDP, and national savings to rise to 36.24%. Per capita gross national income is estimated at USD 1,517. Total output at basic prices is expected to reach Rs 92.46 trillion. The positive trend reflects stronger domestic activity, energy expansion, and continued remittance inflows, despite lingering structural challenges.

Unimplemented Government Projects Cast Doubts Ahead of New Budget:

Nearly a year after the government unveiled its budget on May 28, 2024, numerous planned projects remain unimplemented, with many carried over from previous years. Notable unexecuted initiatives include the Gandaki Triangle Project, the Prime Minister’s Daughter Self-Reliance Programme, and plans to develop Lumbini as a birthing hub. Several agricultural and infrastructure projects, including the expansion of Butwal–Narayangadh road, have also stalled. The Finance Ministry cites delays in tenders, bureaucratic inefficiencies, and political indecision as obstacles to implementation. As the government prepares its Fiscal Year 2025/26 budget, skepticism remains over achieving full project execution.

Nepal’s Government Aims for Full Anti-Money Laundering Compliance Within Two Years:

Nepal remains on the Financial Action Task Force (FATF) grey list due to deficiencies in anti-money laundering (AML) measures, prompting the government to adopt a policy for compliance with international AML standards within two years. The fiscal year 2025/26 policies, presented in the Federal Parliament, outline plans to fully implement the National Strategy and Action Plan on Anti-Money Laundering and Combating Financing of Terrorism by 2083 BS. The government also aims to strengthen transparency in financial crimes, enhance anti-corruption measures, and improve public service delivery through governance reforms, e-Governance, and result-based monitoring of development projects.

Nepal to Make Social Security Fund Participation Mandatory:

Starting from fiscal year 2025/26, all employed individuals in Nepal will be required to participate in the contribution-based Social Security Fund (SSF). President Ramchandra Paudel announced the policy during the joint session of the federal parliament, stating that employees under any contractual or service arrangement must enroll in the SSF. Employers will also need to provide proof of enrollment and regular contributions when renewing registrations. The government also plans reforms in education and health, including establishing a “Teacher Bank,” expanding healthcare infrastructure, and integrating health subsidies into the national insurance system for sustainability and accessibility.

Himalayan Reinsurance Expands Global Reach with 15 International Partners:

Himalayan Reinsurance, Nepal’s first private sector-promoted reinsurer, has partnered with 15 global reinsurance companies to support reinsurance operations across 52 countries, including those in Asia and Africa. Its international partners include GIC Re (India), Kenya Re (Africa), Hannover Re (Germany), Santam Re (South Africa), Sava Re (Slovenia), Triglav (Slovenia), Imara (UK), Bizle (UK), Singapore Re, Ednic (Abu Dhabi), SISA Re (Australia), Bao Minh (Vietnam), New India Assurance (India), PartnerFair, and Nepal Re. The company has also gained approval to operate in the Indian market as a cross-border reinsurer and secured a retrocession partnership with GIC Re. Himalayan Re currently manages the Foreign Employment Insurance Fund under Nepal’s rotational system. In the second quarter of FY 2081/82, it posted Rs 2.39 billion in net premium income and Rs 616.9 million in profit. AM Best has reaffirmed its B+ (Good) financial strength and BBB– issuer rating with a stable outlook.

Buddha Air Founder Birendra Bahadur Basnet’s Book “By the Book” Launched:

Birendra Bahadur Basnet, founder-director and current executive chairman of Buddha Air, has launched his book “By the Book”. The book highlights the success story of Buddha Air, which began in 1997 with just four people and now employs 1,500 individuals. The book’s title, “By the Book”, emphasizes the importance of following proper business practices. Basnet wrote it with the aim of offering learning opportunities to aspiring entrepreneurs. He hopes it will inspire dreamers. So far, Buddha Air has provided services to over 2 million passengers. The airline operates flights from Kathmandu to various destinations within Nepal and India, including Banaras. The book was launched on Saturday by Sanjar Bhakta Shrestha and Ashok Sanser Jabara, CEO of Himalaya Bank. Basnet remarked that the aviation business, though risky and expensive, has become a symbol of success, fulfilling the dreams of ordinary people.

KMC to Host ‘Skill Fair 2025’ at Tundikhel, Targeting Over 2,000 Trainees:

Kathmandu Metropolitan City will organize ‘Skill Fair 2025’ at Tundikhel from May 21, aiming to train 2,082 participants. Announced by Mayor Balendra Shah on International Labour Day, the fair is part of KMC’s ‘Employment and Income Growth, Prosperous Kathmandu’ programme. It offers training in 30 professions to boost youth employability and reduce labour migration. Last year, 2,575 individuals were trained, exceeding the target. KMC plans to train 15,000 youths and help 5,000 secure jobs or start businesses by 2026.

Average EPS of Commercial Banks at Rs 14.27; Everest Leads, NIC Asia Lowest:

By the end of Chait of the current fiscal year, the average earnings per share (EPS) of Nepal’s commercial banks stood at Rs 14.27, slightly down from Rs 14.31 last year. Of 20 banks, 10 saw EPS growth, while the rest declined. Everest Bank posted the highest EPS at Rs 35.61, up Rs 6.06, whereas NIC Asia recorded the lowest at Rs 1.41. The total paid-up capital reached Rs 385.33 billion and cumulative profit stood at Rs 41.25 billion.

Nepal Rastra Bank Penalizes Several Banks for Regulatory Violations:

Nepal Rastra Bank has taken action against multiple commercial banks for violating regulatory provisions during the first three quarters of the current fiscal year. Two state-owned banks were also penalized. Issues ranged from improper interest payments, non-compliance with loan classification and capital adequacy norms, and governance failures. NIC Asia, Prabhu, Himalayan, and Nepal Bank were among those warned or fined. Standard Chartered was fined Rs 148.5 million, while Nepal Bank’s former board chair was fined Rs 500,000 for abuse of position.