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 key economic news highlights.

Experts Slam Nepal’s 2025/26 Budget as Status Quoist and Lacking Economic Vision:
Economic experts have expressed concern that Nepal’s fiscal budget for 2025/26 fails to address urgent economic issues. In a discussion organized by the Nepal Intellectuals’ Organization, former Planning Commission members Dr. Ramesh Paudel and Dr. Chandrakant Paudel, along with economists Dr. Surya Thapa and Dr. Nara Bikram Thapa, criticized the budget as status quoist, lacking reform, and failing to boost public confidence. They pointed out gaps in tax reform, job creation, capital spending, and economic formalization. While the budget’s size and targets were seen as realistic, experts warned that poor implementation, inflation risks, and policy inertia could derail economic recovery.

NEPSE Falls by 52 Points Amid Investor Uncertainty Despite Budget and New NRB Governor:
The Nepal Stock Exchange (NEPSE) dropped by 52.10 points last week, closing at 2,640.96, as the newly appointed governor of Nepal Rastra Bank and the federal budget failed to restore investor confidence. Trading was limited to four days due to a public holiday. Despite a slight gain of 2.77 points on Monday, the market declined over the next three days, with Tuesday seeing the sharpest fall of 35.73 points. The overall market capitalization shrank by Rs 84 billion, from Rs 4.483 trillion to Rs 4.399 trillion. Only the investment and mutual fund sectors recorded marginal gains, while the banking sector saw the steepest drop at 3.93 percent. Among individual stocks, Barun Hydropower lost 38.48 percent, while Pure Energy surged 46.37 percent. Radhi Bidyut Company posted the highest turnover at Rs 2.46 billion. The total weekly turnover fell by 4.18 percent to Rs 29.04 billion, with a daily average of Rs 7.26 billion.

Financial Access Expands in Nepal Amid Digital Growth, But NPLs Raise Concerns:
Nepal’s financial access is rapidly growing, with 58.4 million deposit accounts and 1.94 million loan accounts as of mid-March 2025, according to the latest Economic Survey. Mobile banking users surged to 26.76 million, reflecting strong digital adoption. Deposit and loan volumes rose 9.5% and 7.7% respectively year-on-year. The number of bank branches and financial institutions reached 107, including 20 commercial banks covering all 753 local levels. Despite these gains, the average interest rates have dropped and the non-performing loan (NPL) ratio increased to 4.92%, highlighting emerging risks in credit quality. Overall, infrastructure and policy reforms continue to support access growth.

PM Oli Inaugurates Jivan Bikas Community Hospital in Morang:
Prime Minister KP Sharma Oli inaugurated the Jivan Bikas Community Hospital and the Technical Education Foundation at Katahari-2 in Morang district during a special ceremony held on Saturday. The newly established hospital aims to provide affordable and quality healthcare services, particularly targeting economically disadvantaged communities in Nepal’s eastern region. The initiative reflects a commitment to improving public health infrastructure and enhancing access to essential services for underserved populations. The Technical Education Foundation is also expected to play a vital role in skill development and vocational training for local youth, contributing to regional empowerment and development.

Binod Chaudhary Revives Gandak Canal, Expands Irrigation Fivefold in Nawalparasi:
Nepali Congress lawmaker Binod Chaudhary has announced that the Gandak Canal in western Nawalparasi is now fully operational, following a major revitalization effort. Originally built in 1982 to irrigate 8,700 hectares, the canal had deteriorated to just 20% capacity due to sediment buildup. After being elected in 2022, Chaudhary invested Rs 350 million in a desiltation system that now restores full canal capacity, expanding irrigation coverage fivefold. He said the upgrade brings tangible benefits to farmers. The official inauguration of the system is set for June 9 and will be attended by the Minister for Energy.

Massive Fire Destroys 35 Shops in Bamla Bazaar, Losses Estimated at Rs 87.7 Million:
A devastating fire engulfed at least 35 shops at Bamla Bazaar in Budhiganga Municipality-6 on Friday afternoon after a cooking gas cylinder exploded at Nabadurga Hotel. The District Police Office confirmed that the blaze destroyed all shops in the market, causing property losses estimated at Rs 87.7 million. Major losses include Rs 18 million worth of goods belonging to Yognath Neupane, and Rs 15 million each to Toyanath Neupane, Chhatra Thapa, and Dhan Bahadur Saud. Outlets like fancy stores, pharmacies, electronics, and hotels were destroyed. Locals criticized the absence of a fire engine. Authorities have requested provincial and federal relief.

Onion Farming Gains Ground in Ilam as Farmers See Profitable Returns:
Onion farming is gaining momentum in Ilam, with farmers like Prakash Parajuli of Sandakpur producing up to 4,000 kg this year despite reduced rainfall. Parajuli, who earned Rs. 150,000 from onions last year, believes government support could make Nepal self-reliant in onion production. Inspired by his success, other local farmers have begun cultivating onions commercially. Currently, onions sell for Rs. 40 per kg in local markets. According to the Agricultural Knowledge Centre, onions are grown on 115 hectares in Ilam, yielding nearly 2,000 tonnes last year. The crop is increasingly seen as a profitable and in-demand agricultural product across the district.

Maurice Herzog’s Ice Axe Finds Temporary Home in Pokhara’s International Mountain Museum:
Mathias Herzog, son of legendary climber Maurice Herzog, has handed over his father’s historic ice axe to the International Mountain Museum in Pokhara, Nepal. Brought from the Olympic Museum in Switzerland, the axe will be displayed for a year, coinciding with the Diamond Jubilee of the 1950 Annapurna summit. The museum also unveiled statues of Maurice Herzog and Sherpas Ang Tharkay and Walung Sonam. Events included a photo exhibition, video screenings, and the release of a Nepali edition of Herzog’s book Annapurna. The museum plans to digitize its archives and build a botanical garden as part of its transformation into a global attraction.

Baglung’s Panchakot Emerges as New Religious-Touristic Hub Under Kamalanayanacharya’s Vision:
Panchakot in Baglung is rapidly transforming into a major religious-touristic destination, inspired by the vision of Kamalanayanacharya, a revered spiritual figure born in Baglung Municipality-6. Since the campaign’s launch on February 19, 2015, over Rs. 600 million has been invested in building religious and touristic infrastructure across more than 200 ropanis of land. According to Ward Chairperson Rudra Bahadur KC, the development has begun attracting hundreds of domestic and international tourists, arriving via jeeps and buses. The area is gaining national attention as a spiritual site, offering a blend of religious significance and scenic beauty in western Nepal.

Himalaya Airlines Marks 10 Years of Strengthening Nepal’s International Air Connectivity:
Himalaya Airlines, a Nepal-China joint venture, celebrated its 10th anniversary in Kathmandu on Thursday. The event was attended by officials from the tourism ministry, civil aviation authority, Chinese embassy, and tourism stakeholders. Speakers highlighted the airline’s role in boosting Nepal’s aviation sector, international connectivity, and tourism. Established in 2014 and operational since 2016, Himalaya Airlines now connects Nepal to China, Saudi Arabia, Kuwait, Qatar, UAE, Malaysia, and Bangladesh. The airline credited its success to the support of employees, stakeholders, and passengers. It reaffirmed its commitment to safe and reliable service as it expands across Asia and the Middle East.