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.

Finance Minister Poudel Projects 6% Growth, Urges Support for Realistic and Reform-Oriented Budget:
Deputy Prime Minister and Finance Minister Bishnu Poudel stated that the budget for the upcoming fiscal year targets a 6% economic growth rate, calling it realistic and reform-focused. Speaking at a Saturday event in Kathmandu, he emphasized that the budget was prepared with proper resource management and within financial limits. He urged support for effective implementation and noted that past growth of 7.5% makes the 6% target achievable. Poudel addressed concerns over public debt and revenue, stressing efforts to mobilize resources, empower youth entrepreneurs, support the private sector, and promote digital banking and environmentally safe mining through legal and infrastructure reforms.

Gandaki Makes RS/SD Logo Mandatory for Ride-Sharing; Transporters Protest:
The Gandaki Province government has mandated that all ride-sharing vehicles must display an “RS” or “SD” logo for identification. As per the newly published Ride-Sharing (Regulation and Management) Rules 2082, two-wheelers must show a red “RS” inside a black circle, while self-drive vehicles must display an “SD” logo. The move aims to ensure transparency and regulate online-based transportation services. However, transport entrepreneurs have opposed the rules, demanding the withdrawal of the clause defining privately registered red-plate vehicles as part of ride-sharing. The government claims the policy was created with stakeholder consultation, making Gandaki the first province to legally recognize ride-sharing.

Transport Operators Launch Phase-wise Protest, Warn of Nationwide Strike:
Transport entrepreneurs across Nepal have launched a phase-wise protest from today, placing public vehicles across the Ring Road to block traffic for one hour as part of the “Save Public Transport” campaign. Waving black flags, operators from all seven provinces joined the rally. They have issued a 7-point demand and warned of a nationwide transport shutdown if the government fails to address their concerns by the 19th. Led by multiple transport unions, including the Nepal Transport Entrepreneurs Federation, the protesters allege that recent government policies are harming the public transport sector and are demanding urgent dialogue and policy revision.

Former Finance Minister Janardan Sharma Urges Structural Reform, Criticizes Budget’s Gaps in Agriculture, Production:
Former Finance Minister Janardan Sharma called the government’s budget “realistic but incomplete,” stating that while some policy directions are positive, deeper structural reform is essential. Speaking at a post-budget discussion organized by the Nepal Economic Journalists Society (NAFIJ), Sharma emphasized the need to boost domestic production and modernize agriculture, noting the budget lacks concrete support for farmers. He also highlighted Nepal’s heavy reliance on imports, minimal capital expenditure, and insufficient qualitative spending. Sharma urged the government to focus on economic restructuring, better labor mobilization, and investment in agriculture, tourism, and hydropower to ensure long-term, inclusive economic growth.

Economist Dr. Ramesh Paudel Says Budget is Private Sector-Friendly but Warns of Structural, Revenue Gaps:
Economist and former Planning Commission member Dr. Ramesh Paudel praised Nepal’s new budget as private sector-friendly but cautioned that deep structural gaps remain. Speaking at a post-budget discussion hosted by NAFIJ, he said the government missed an opportunity for “policy departure” despite backing from two major parties. With 50% of the economy still informal, he urged efforts to formalize it to improve tax collection. Dr. Paudel emphasized increasing capital expenditure—currently only 5% of GDP—and expanding non-tax revenue. He called for greater investment in health and education, better budget implementation, and fiscal discipline to avoid unsustainable domestic debt burdens.

Government Moves to Expand Credit, Manage Bad Loans with New Reforms:
In response to declining credit demand and lower-than-projected lending, the government has announced a credit expansion policy in its budget for fiscal year 2025/26. Key measures include coordinating with Nepal Rastra Bank to establish an Asset Management Company for managing bad loans. The budget also proposes relief for struggling industries through refinancing, recapitalization, and waivers on penalties and interest. Additionally, the government plans to establish a neobank within the upcoming fiscal year to promote digital and branchless banking. These steps aim to boost liquidity, revive industrial confidence, and modernize Nepal’s financial ecosystem in coordination with the central bank.

Hotel Association Welcomes Tax Exemptions, Tourism Boosts in FY 2025/26 Budget:
The Hotel Association Nepal (HAN) welcomed the FY 2025/26 budget, praising income tax and electricity tariff exemptions for hotels. It lauded commitments to highway upgrades, airport expansion, Nepal Airlines reform, and heritage trail development. HAN also appreciated efforts to promote diverse tourism, cross-border travel, and conference infrastructure. However, it urged removal of luxury and VAT charges on domestic airfare to improve competitiveness. The association emphasized effective implementation and stronger private sector involvement.

Second Potato Summit 2025 Charts Roadmap for Boosting Nepal’s Potato Industry:
The Second Potato Summit 2025, held in Kathmandu, focused on enhancing Nepal’s potato sector through seed value chain improvements, processing, market access, and private investment. Organized by NICCI with MoALD and FAO, the summit saw participation from policymakers, experts, and industry leaders. Discussions emphasized policy reforms, potato zone expansion, highland cultivation, insurance, and credit access. India pledged support for seed development, while FAO highlighted potatoes as a priority for rural resilience and food security.

Government Scraps Excise Duty on 12 Dry Fruits to Curb Illegal Imports:
To reduce illegal imports and stabilize prices, the government has abolished excise duties on 12 dry fruits, including cashews, walnuts, and almonds, effective FY 2025/26. Duties had ranged from 5–15%, fueling price manipulation and smuggling. By removing 23 HS codes from the Financial Bill, the move is expected to lower prices and support legal trade. Nepal’s dry fruit imports exceeded Rs 2.5 billion this year, with cashews, walnuts, and almonds dominating.

Nepal-India Experts Discuss Sustainable Poultry Development in Chitwan:
Experts from Nepal and India gathered in Chitwan on Thursday to discuss sustainable poultry development and economic benefits. Organized by India’s Poultry Review and Nepal Veterinary Poultry Association, the seminar featured seven expert presentations and drew 103 participants, including scientists, entrepreneurs, and policymakers. Key topics included eco-friendly feed technology and infectious disease management. Participants highlighted the event’s value in exchanging knowledge and experience in the poultry sector.

Flood Washes Away Road Diversion, East-West Highway Blocked in Jhapa:
Incessant rainfall has completely obstructed the East-West Highway at Kalikhola, Mechinagar-6, Jhapa, after floodwaters swept away a road diversion under the Asian Highway project. Transport services are halted, with an alternative route in use. Authorities are coordinating for repairs. The Department of Hydrology and Meteorology reported heavy rain across Jhapa, Ilam, Sunsari, and Dhankuta, warning of potential floods in rivers like Mechi, Kankai, and Ratuwa, urging public caution.

Nepal Prioritizes Digital Nepal Framework, Says Minister Gurung in Tokyo:
Minister for Communications and Information Technology, Prithvi Subba Gurung, said Nepal has prioritized the Digital Nepal Framework (DNF) for a safe, inclusive digital future. Speaking at the Asia-Pacific Telecommunications Ministerial Meeting in Tokyo, he stressed the need for a strong IT ecosystem and infrastructure. Gurung highlighted data security, innovation, and citizen empowerment, and expressed Nepal’s commitment to deeper collaboration with APT in technology transfer, capacity building, and policy support.

Karnali Highway to Close for Four Days for Road Repairs:
The Karnali Highway will be fully closed from June 3 to 7 to repair a narrow and difficult stretch between Kalalu and Lalighat. The closure, decided at a stakeholders’ meeting at the District Administration Office, will mainly affect residents of Kalikot, Bajura, and Humla. Assistant CDO Janak Sharma said vehicles will be halted at designated points. Nearly one kilometer of road will undergo repairs during this period.