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 highlights:

Suspicious Transactions Surge as Nepal Struggles with FATF Grey Listing: Suspicious transactions in Nepal have surged nearly sevenfold in five years, with 7,338 cases reported in FY 2023/24, a 24% increase from the previous year, according to Nepal Rastra Bank’s Financial Intelligence Unit (FIU). The rise comes as Nepal remains on the FATF grey list for failing to curb money laundering and terrorist financing.

Most flagged transactions were linked to banking, foreign exchange, insurance, and cooperatives, with cases involving tax evasion, money laundering, and fraud. The FIU forwarded 889 cases to various agencies, including Nepal Police and the Revenue Investigation Department. Despite the increase in suspicious reports, high-value transaction filings slightly declined. Nepal has adopted a seven-point action plan to exit the grey list, aiming for compliance within a year. Previously, Nepal spent six years on the FATF grey list before being removed in 2014.

PM Oli Warns of Attempts to Undermine Banking System: Prime Minister KP Sharma Oli has accused certain elements of trying to destabilize Nepal’s banking sector by manipulating public sentiment. Addressing Parliament on Monday, he claimed a group has been inciting people against financial institutions by promoting the idea that loans need not be repaid. Without naming Durga Prasai, he alleged that the same group is also spreading distrust against the government, system, and constitution while fueling communal tensions.

Finance Minister Paudel Defends Settlement System for Tax Evasion: Deputy Prime Minister and Finance Minister Bishnu Paudel stated that the provision for settling tax evasion cases will aid revenue collection. Addressing the National Assembly on Monday, he explained that while settlements were previously allowed for evasion up to NPR 500 million, the revised bill lowers the limit to NPR 30 million. He emphasized that this is not about legitimizing tax evasion but ensuring quicker resolution and revenue recovery.

Asia-Pacific Telecom Meeting Begins in Kathmandu: Representatives from 38 member nations of the Asia-Pacific Telecommunity (APT) have gathered in Kathmandu for the 34th Wireless Group (AWG-34) meeting. Hosted by Nepal’s Ministry of Communication and Nepal Telecommunication Authority, the event focuses on wireless systems in the digital era.

Over 400 participants, including 200 in Kathmandu, are discussing spectrum management, 5G/6G, and bridging the digital divide. Nepal aims to expand broadband nationwide and launch 5G in major cities by next year.

Udayapur Cement Industry in Crisis, Mining License Revoked: State-owned Udayapur Cement Industry is facing a severe crisis after failing to renew its limestone mining license due to unpaid dues. The industry has an outstanding debt of 5 billion, including 3.37 billion owed to the government. Production has remained below 50% capacity for four years.

With no cement stock, prices have surged to 700 per bag. A government report suggests privatization as the only viable solution for both Udayapur and Hetauda Cement industries.

Government Amends Criteria to Appoint Governor Over 65 Years: The government has amended the criteria for appointing officials to public bodies under the Ministry of Finance, removing the age limit for Nepal Rastra Bank’s Governor position. Previously, candidates had to be between 30 and 65 years old; now, individuals over 65 can be appointed.

Nagdhunga Tunnel Construction Halted for 15 Days: Construction of the Nagdhunga-Sisnekhola Tunnel has been stalled for 15 days due to local protests, despite nearing completion. Residents have blocked work since mid-March, citing unresolved demands.

The delay has made project completion uncertain, with authorities showing little urgency. Each day of inactivity costs the government nearly half a million dollars in compensation. Key works like lighting, ventilation, and road concreting inside the tunnel remain unfinished. Officials warn further delays could push back the tunnel’s planned October 2025 opening.

Regular International Flights Begin at Pokhara International Airport: Regular international flights have started from Pokhara International Airport. According to the Pokhara Airport Office, a Himalayan Airlines flight from Lhasa has landed. With this, Himalayan Airlines has become the first airline to operate regular international flights to Pokhara. The flight carried 107 passengers, including 32 Chinese and 75 Nepali citizens. The passengers were welcomed by Gandaki Province Chief Minister Surendra Pandey and the Chinese Ambassador to Nepal, Chen Song.

Nearly 15,000 Tourists Visit Mustang in Two Days: Mustang welcomed 14,853 domestic and foreign tourists over Friday and Saturday, according to the District Police Office. Of these, 9,556 arrived on Friday and 4,297 on Saturday. Most were Nepalis visiting Muktinath. Among foreign visitors, Indian nationals were the largest group. Many traveled for religious rituals at Kagbeni and Muktinath. Tourist data is collected by police at checkpoints and ACAP for foreign visitors.

NARC Urges Vigilance Amid High Risk of Bird Flu and African Swine Fever: Given the current high risk of bird flu in poultry and African Swine Fever in pigs and hogs, there has been a call for increased vigilance. The National Agricultural Environment Research Center under the Nepal Agricultural Research Council (NARC) has urged poultry and pig farmers to adopt biosecurity measures on their farms. It is advised that adopting biosecurity measures is the best way to prevent bird flu. It is recommended not to mix poultry from markets with other birds and to keep them at least 14 days away from the flock.

Flights Resume at Resunga Airport After 3.5 Months: After three-and-a-half months flight resumed at Resunga Airport of Gulmi on Monday. Due to the maintenance of the plane flights were halted at the airport. Chief of the Resunga Airport Suman Thapa informed that Nepal Airlines’ plane landed at the airport with 14 passengers from Kathmandu Monday and left with four passengers to Kathmandu. He informed that, the next flight will be operated on Thursday.  Flights have been scheduled from Kathmandu at 6:15 Morning and from Resungaat 7:15 Morning. The airport can be reached via a five-kilometerunpaved road from Tamghas, the district headquarters. Commercial flights were started from the airport on April 14, 2023.

Low Visibility Leads to Diversions of International Flights: Flights at Tribhuvan International Airport (TIA) today were affected due to adverse weather. According to TIA, over half a dozen of international flights were diverted to Bhairahawa and even India from TIA today due to low visibility issue. TIA Spokesperson Rinji Sherpa confirmed that the adverse weather affected various flights including those of Jazeera Air, Air India and Fly Dubai towards the international services. According to him, Jazeera Air and Air India were diverted to Banaras of India and Fly Dubai to Bhairahawa-based Gautam Buddha International Airport while some flights were put on hold for sometimes. This morning, TIA recorded visibility up to 1600 meters which was insufficient to meet the standard for the flight landing.

Air Services Resume at Taringaun Airport in Dang After Three-Month Pause: Air services resumed at the TaringaunAirport in Tulsipur-12, Dang, on Monday after a gap of three months. Nepal Airlines Station In-charge Bal Bahadur Sunar informed that flights will now operate every Monday. He also mentioned that additional flights can be added based on passenger demand. The airport has repeatedly faced disruptions in air services, and this time, the service had been suspended since December 17. Due to the lack of regular air services at the airport, passengers had to travel to Nepalgunj or Bhairahawa. The airport’s runway is too small to accommodate large aircraft. Currently, only 19-seater planes are in operation, but even these flights are irregular, forcing passengers to go to Bhairahawa or Nepalgunj. Currently, the airport’s runway is 750 meters long. There have been repeated calls to extend the runway to accommodate larger aircraft.

Vandalism at Koteshwar’s Bhattabhateni Supermarket Causes Over 8 Million Rupees in Damage: The vandalism at the Bhatbhateni Supermarket in Koteshwar, Kathmandu, has caused damage of over 8 million rupees. The initial estimate suggests that the damage from the vandalism and looting during the royalist protests on Friday amounts to more than 8 million rupees. According to Bhatbhateni’s COO, Panu Paudel, goods worth 6,488,337 rupees were looted during the incident.Activists from the royalist group entered the Bhatbhateni store, where they vandalized and looted items.

Pure Energy Limited to Issue 11,95,200 Lakh IPO Shares from Chaitra 28: Pure Energy Limited is set to issue an IPO of 11,95,200 shares with a par value of Rs. 100, starting from 28th Chaitra, 2081. The issue will close on 2nd Baisakh, 2082, but if it is not fully subscribed by that date, it can be extended until 11th Baisakh, 2082. The company’s total issued capital is Rs. 80 Crore. Out of this, 2% (1,60,000 shares worth Rs. 1.60 Crore) has been reserved for project-affected locals in Banke District. Additionally, 18% of the issued capital, or 14,40,000 shares, will be offered to the general public starting from 28th Chaitra, 2081. Among the public offering, 10% (1,44,000 shares) is allocated for Nepalese citizens working abroad. Out of the 14,40,000 shares offered to the public, 72,000 shares (5%) are earmarked for mutual funds, while 28,800 shares (2%) will be reserved for the company’s employees. The remaining 11,95,200 shares will be available for the general public to subscribe to.

IPPAN Requests NEA to Extend RCOD for Delayed Hydroelectric Projects: The Independent Power Producers’ Association, Nepal (IPPAN) has urged the Nepal Electricity Authority (NEA) to easily extend the Revised Commercial Operation Date (RCOD) if delays in obtaining permits from government or external bodies cause hydroelectric projects to miss their completion deadlines. On Monday, while congratulating and wishing the newly appointed Executive Director of the Nepal Electricity Authority, Hitendra Dev Shakya, IPPAN President Ganesh Karki pointed out that many hydroelectric projects have faced difficulties due to delays in obtaining necessary permits. These include permits for tree cutting from the Ministry of Forests and permits for importing explosives from India. As a result, these projects have been unable to produce electricity as per the scheduled timeline. Karki emphasized the need for the NEA to facilitate the extension of the RCOD to allow these projects to begin commercial operation smoothly.

Gold Prices Reach Record High in Domestic Market Today: The price of gold in the Nepali market is setting new records every day. According to the Nepal Gold and Silver Dealers’ Association, the price of hallmark gold is being traded at NPR 177,900 per tola (11.66 grams) on Monday. Previously, on Sunday, gold was traded at NPR 176,800 per tola, setting a record high. On Monday, the price surged by NPR 1,100 per tola, breaking the previous record. Similarly, the price of silver has increased by NPR 10 per tola and is currently being traded at NPR 2,035 per tola, according to the association.