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The federal government has received Rs 99.2bn in external loans during the first 11 months of the current fiscal year, which is less than half of its target of Rs 217bn. According to a report from the Public Debt Management Office, the foreign loans received as of mid-June amount to just 45.72 percent of the target. In contrast, internal debt mobilization is on track to meet its goal, with 95.45 percent (around Rs 315bn) of the Rs 330bn target already achieved.

Most of the foreign loans have been categorized under capital expenditure, serving as a source for funding development projects. However, the slowdown in development activities has hindered the inflow of these external loans, according to the office. “Donor agencies largely provide financial assistance to Nepal in the form of project-based loans rather than direct budgetary support. As a result, the delayed or poor implementation of projects significantly impacts the receipt of funds. Overall, weak development expenditure has led to a decline in external loan inflows.”

According to the Office of the Auditor General, as of Saturday evening, the annual capital expenditure has only reached about 42 percent of its target.

Meanwhile, the Public Debt Management Office stated that the total debt that the government has yet to repay is Rs 2,654bn. At the beginning of the current fiscal year, the total public debt was
Rs 2434.9bn, and by the end of last May, an additional Rs 220.58bn of government debt was added. As of the end of last May, the total public debt is 43.47 percent of the country’s total gross domestic product. Furthermore, the share of foreign debt in the remaining debt that the government has to repay is 52 percent, while the share of domestic debt is 47.94 percent.

According to the data as of mid-June the internal debt is Rs 1272.53bn and the external debt is
Rs 1382.12bn. The government had set a target to mobilize Rs. 5.47bn in public debt for the current fiscal year. As of the end of last mid-June, Rs 414bn has been collected in debt. As of June 14, the total public debt is 43.47 percent of the country’s total gross domestic product. The government has yet to receive a total loan of 52 percent in foreign debt, while the share of domestic debt stands at 47.94 percent.

The government had set a target to mobilize public debt of Rs 547bn through active means. As of mid-June, the government has raised a loan of Rs 14.19bn. The total public debt collection as a percentage of the annual target is 75.72 percent. For the payment of the principal and interest on government debt, Rs 329.6bn has been spent in the last 11 months, it is stated.

The Nepal Stock Exchange (NEPSE) plunged by 32. 16 points to close at 2, 596.74 points on Sunday.

Similarly, the sensitive index dropped by 4. 87 points to close at 444. 60 points.

A total of 21,547,055-unit shares of 310 companies were traded for Rs 9. 14 billion.

Meanwhile, Joshi Hydropower Development Company Ltd (JOSHI) was the top gainer today with its price surging by 9. 98 percent. Likewise, Pure Energy Limited (PURE) was the top loser as its price fell by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 4. 32 trillion.

The price of gold has increased by Rs 500 per tola in the domestic market on Sunday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 195, 200 per tola today.

Similarly, the price of silver has increased by Rs 90 and is being traded at Rs 2, 160 per tola today.

In a landmark move to liberalize Nepal’s electricity sector, the Electricity Regulatory Commission (ERC) has approved a draft of a directive that allows the private sector to participate in electricity trading through open access to the power grid. The 276th board meeting of the EC took the decision on Wednesday. 

The new directive proposes allowing private producers and traders to buy and sell electricity within Nepal or export it abroad without relying solely on the Nepal Electricity Authority (NEA) for power purchase agreements. Open access refers to the provision that enables producers, power traders, and large consumers to use the national transmission and distribution infrastructure without discrimination. As per the guidelines, a wheeling charge of 39 paisa per unit has been proposed for the short term access to the power grid. Similarly, a monthly wheeling charge of Rs 283,842 per MW has been proposed for the mid-term and long-term access.

Under the proposed guideline, the minimum transaction threshold for domestic consumption is set at 5 MW, while cross-border trade requires a minimum of 10 MW.  The directive aims to reduce risks faced by electricity suppliers, enhance investor confidence and encourage infrastructure development by engaging the private sector in electricity trade. Open access is also expected to pave the way for a wholesale electricity market in Nepal.

The budget for the upcoming fiscal year 2025/26 has introduced ‘take and pay’ provision for power purchase agreement (PPA) instead of ‘take or pay’. Independent power producers have opposed the provision. However, Deputy Prime Minister and Minister of Finance Bishnu Prasad Paudel said in the parliament that the decision to enforce ‘take and pay’ provision was aimed at involving the private sector in the electricity trade.

The ERC has also laid out eligibility criteria for open access users. As per the draft guidelines hydropower plants with a capacity of at least 5 MW connected to a 33 kV or higher grid, captive plants with a minimum of 1 MW capacity, and industrial or commercial consumers meeting similar standards are eligible to participate in electricity trade. Applicants must also hold a distribution or trading license.

The guidelines have categorized electricity trading contracts through open access into three categories—short-term (from 24 hours up to one year), mid-term (more than one year to up to five-years) and long-term (more than five-years). However, the draft guidelines clearly state that traders can export electricity only when domestic consumption and demand have been met. Projects permitted by the government or those exporting through NEA are exempt from this requirement.

The directive designates NEA’s System Operations Department as the nodal agency for implementing. The Department will have to publish detailed procedures and agreement drafts within 120 days of the approval of the directive. The ERC will also have to prepare additional regulatory frameworks such as metering codes, deviation settlement mechanisms and grid connectivity directives.