Nepal is facing serious economic challenges. The stock market is falling. Gold prices are unstable. The World Bank has lowered Nepal’s growth forecast to just 4.5% for the next fiscal year. At the same time, the government is trying to take action. It is setting up big funds for development, making new laws, and planning new budgets. But problems like rising food prices, pesticide issues, and a big trade gap with China continue to hurt the economy.
NEPSE Down for Fourth Day in a Row
The Nepal Stock Exchange (NEPSE) dropped again on Wednesday. This was the fourth straight day of losses. The index fell by 32.38 points, ending at 2,655. Daily trading was only Rs 7.57 billion, lower than Rs 8.32 billion the day before.
Out of all traded companies, 217 lost value, 28 gained, and one stayed the same. Development Banks fell the most, dropping by 2.09%.
Gold Prices Drop Sharply
Gold prices fell by Rs 7,500 per tola on Wednesday. This came just one day after a sharp rise of Rs 6,900. Now, hallmark gold costs Rs 190,400 per tola.
Silver also dropped slightly to Rs 1,965 per tola. These price swings are causing concern among traders. Both global and local reasons are affecting the market.
World Bank Cuts Growth Forecast to 4.5%
The World Bank now expects Nepal’s economy to grow only 4.5% in the fiscal year 2024/25.
In its new report “Taxing Times,” the Bank says floods, landslides, and weak infrastructure are to blame.
These problems are hurting tourism and farming. The Bank hopes growth will improve to 5.2% in 2025/26.
Government Plans Big Infrastructure Fund
The government wants to start a new Rs 100 billion fund to invest in roads, energy, and other major projects.
The bill, already in Parliament, would allow for Rs 25 billion in starting capital.
The goal is to attract money from both Nepali and foreign investors and to create jobs through long-term projects.
Fiscal Policy to Be Unveiled May 2
Nepal’s new fiscal policy and program will be presented in Parliament on May 2.
Speaker Devraj Ghimire has already set the schedule. Budget talks will begin on May 16.
Due to a busy agenda, Parliament will meet daily except Saturdays and holidays.
Trade Deficit with China Hits 99.1%
Nepal’s trade with China shows a major gap. Out of Rs 250 billion in trade, Nepal only exported Rs 2.25 billion worth of goods.
The rest—Rs 247.75 billion—were imports from China.
This means 99.1% of Nepal’s trade with China is a deficit, based on Customs data.
Pesticides Found in Kalimati Vegetables
Tests at Kalimati vegetable market found high levels of harmful pesticides.
A sponge gourd from Dhading had 53.93% organophosphate residue.
Mustard greens from the same district had 39.69%.
These vegetables were removed from the market by police.
Insurance Subsidies Strain Government Budget
The government pays 80% of the cost for farm and livestock insurance.
In 2080/81, it gave Rs 1.61 billion in subsidies for over 156,000 policies.
Now, delays in payments have led insurers to stop issuing new policies, creating a big problem for farmers.
Government Enforces MRP Labeling
The government has given a one-week deadline for all footwear and medicine products to show Maximum Retail Prices (MRP).
The order was given to producers and suppliers. Both groups agreed to follow the rule after a meeting led by Director General Kumar Prasad Dahal.
Home Ministry Building Nears Completion
A new Home Ministry building in Singha Durbar is almost ready.
The five-story structure includes over 100 air-conditioned rooms and modern safety systems.
The design is based on old Rana-style architecture.
Tunnel Construction Damages Homes in Nagdhunga
Tunnel building in the Nagdhunga area has damaged 93 homes.
The government has agreed to pay affected families, even though the contractor is responsible.
Hazama Ando Corporation had insured the project for Rs 100 million.
New Law to End Pension for Convicted Officials
Under a new law, civil servants found guilty of serious crimes like corruption, trafficking, or drug smuggling will lose their pensions.
The rule applies to former officials and their families once the court confirms the conviction.
300 Climbers Arrive for Everest Season
Spring climbing season has started. Around 300 climbers from 45 countries have come to Nepal.
So far, 37 teams have Everest permits. The government has collected Rs 550 million in permit fees from these groups.
Nepal and India Sign Power Line Deal
Nepal and India have agreed to build new cross-border power lines.
The deal was signed by Energy Minister Deepak Khadka and India’s Power Minister Manohar Lal Khattar.
The goal is to boost electricity trade between the two nations.
Gandaki Province Launches “Project Bank”
Gandaki Province has started a new system to track and plan development projects.
All government offices must now register new project ideas in a central database.
This will help make budgets clearer and more efficient.
Illegal Signal Boosters Seized in Birgunj
Police in Birgunj found four illegal devices that made Indian mobile signals stronger.
The devices helped people use Indian networks like Airtel and Jio.
Authorities have now removed them.
Lumbini Province Plans Smaller Budget
Lumbini Province will cut its budget from Rs 39 billion to Rs 32 billion.
Chief Minister Chet Narayan Acharya says this is to avoid overspending and bring more financial discipline.
NMB Bank Gets New CEO
Govinda Ghimire has taken over as the new CEO of NMB Bank.
He replaced Sunil KC and was appointed by the bank’s board.
