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The Nepal Stock Exchange (NEPSE) plunged by 11. 10 points to close at 2,654. 35 points on Thursday.

Similarly, the sensitive index dropped by 1. 99 points to close at 446. 81 points.

A total of 15,104,033-unit shares of 318 companies were traded for Rs 7. 85 billion.

Meanwhile, Samudayik Laghubitta Bittiya Sanstha Limited (SLBSL), Corporate Development Bank Limited (CORBL) and Sikles Hydropower Limited (SIKLES) were the top gainer today with their price surging by 10. 00 percent.

Likewise, Super Madi Hydropower Limited (SMHL) and Mandakini Hydropower Limited (MHL) were the top losers as their price fell by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 4. 40 trillion.

Nepal Rastra Bank (NRB) introduced a policy requiring payment systems like WeChat Pay, Alipay and PayPal to register in Nepal in 2019 after these platforms started handling large transactions worth hundreds of thousands of rupees illegally.

Although many operators registered in Nepal and are operating legally as per the established regulations, there are still complaints that these platforms are still handling large transactions by violating the regulations. Police have arrested several people conducting such illegal payments multiple times.

In 2018, 2021 and 2023, police made several arrests to nab people conducting illegal transactions through WeChat Pay. Those arrested for such transactions in 2018 included restaurant owners and Nepali sellers working for multinational companies, according to police. In 2021, police arrested some Nepalis and Chinese nationals for conducting transactions worth millions of rupees through WeChat Pay. Last year, police arrested a few people from a restaurant in Bouddha for sending hundreds of thousands of rupees to China through WeChat Pay.

Following the police action, the Department of Revenue Investigation (DRI) also took interest into these cases and conducted its own investigation. An official of the DRI said that an investigation conducted about five years ago concluded that transactions through WeChat Pay were causing revenue evasion worth around Rs 50m.

Chandi Prasad Ghimire, director general of DRI, said that they have filed 30-35 complaints related to foreign exchange misappropriation through WeChat Pay. “Some cases were filed against people arrested by the police, while some were filed following our investigation,” Ghimire said. He urged businesses not to evade revenue through WeChat Pay or any other means and to follow legal procedures.

Although banks like NMB Bank and Machhapuchchhre Bank support QR-based WeChat Pay payments in Nepal, illegal payments are still occurring through WeChat Pay QR codes issued in China. This has caused significant economic damage to the country as transacted amounts go directly to Chinese bank accounts.

The latest case from the Central Investigation Bureau (CIB) of Nepal Police confirms that illegal fund transfers through WeChat have not stopped. SP Sudhir Shahi of CIB said the bureau cannot divulge further details about these cases as investigations are ongoing.

WeChat Pay permitted to do transactions

“Chinese traders were earlier using WeChat Pay for transactions in Nepal. They would send money directly to Chinese bank accounts,” a Nepali trader said. “Although authorities brought laws to stop such transactions, we hear this is still happening.”

The proliferation of such illegal activities led to foreign exchange misappropriation. This attracted the central bank’s attention. Consequently, NRB’s Foreign Exchange Management Department issued a circular in May 2019, terming WeChat Pay illegal and directing people not to use it. The central bank stated in the circular that using payment systems linked to foreign payment systems (like WeChat Pay, Alipay and POS machines issued from foreign countries, etc.) without Nepal Rastra Bank approval was illegal.

Subsequently, the central bank made provisions to recognize WeChat Pay through Payment and Settlement Regulations. After this, First Pay Technology Pvt Ltd applied for a Payment System Operator (PSO) license in Feb 2020 with a paid-up capital of Rs 100m. NMB Bank and Machhapuchchhre Bank also received licenses. First Pay entered an agreement with Tencent Company of China to bring WeChat Pay to Nepal legally. First Pay and these two banks have over 6,000 merchants including hotels and restaurants in tourist areas across the country.

Nepal Bankers Association Chairperson and Machhapuchchhre Bank CEO Santosh Koirala said it is necessary to bring such illegal payments into the legal framework.

Nepal Rastra Bank Spokesperson Ramu Paudel insisted that illegal payments are not happening now as systems are in place for WeChat Pay transactions to remain within the country. According to him, the payment system was established targeting Chinese tourists specifically for transparent transactions.

Similarly, AliPay can now process payments through all banks via Nepal Clearing Hosuse’s Nepal Pay. Foreign visitors can open convertible foreign currency accounts at Nepali banks and financial institutions valid for their visa duration. This facility expires after their visa ends.

Higher risk of illegal payments in Chinese tourist hubs

Thamel, Lumbini, Patan, Jhamsikhel, Bouddha and Rasuwa are some of the places frequented by Chinese tourists in Nepal. WeChat Pay stands have been installed at hotels, restaurants and travel agencies in these areas, according to Koirala. However, there still is risk of foreign currency misuse as Chinese service providers can use WeChat Pay QR codes issued in China to receive payments from Chinese nationals for the services they provide in Nepal.

The price of gold has dropped by Rs 400 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 159, 600. per tola today. It was traded at Rs 160, 000 per tola on Wednesday.

Similarly, the price of silver has dropped by Rs 20 and is being traded at Rs 1, 875 per tola today.

The Manaslu region is witnessing a boom in tourism with more foreign tourists visiting the  region this tourism season than in the corresponding period of the last fiscal year. 

According to the Manaslu Conservation Area Project (MCAP), which keeps data on tourists, 1,500 more tourists have visited the Manaslu region during the tourist season of this fiscal year compared to the corresponding period of the last fiscal (2023-24).

MCAP stated that 10,600 foreign tourists visited the region in 2024, compared to 9,177 in 2023. Santosh Sherchan, head of MCAP, said the region draws more tourists from Europe and America than from South Asian countries. In 2024, the highest number of tourists were from France (1,335), he informed, followed by 1,181 German citizens and 796 Americans. As for tourists from SAARC member-states, Indian nationals stood at the top with 159 individuals trekking to the region. The region also draws tourists from other countries, including the Netherlands, the United Kingdom, Australia, Spain and China.

To enter the Manaslu region, tourists from SAARC member-states have to pay Rs 1,000 per person whereas the individual entry fee is Rs 3,000 for tourists from other countries. Tourists have to pay at the counters at Bhrikuti Mandap in Kathmandu and Damsite in Pokhara. According to MCAP chief Sherchan, tourists who have not paid entry fees at either of the two places have to pay double the regular fees at the checkposts in MCAP’s Jagat and Samagaun for entering the region.

Since the Manaslu conservation area is a restricted area, tourists must also obtain permissions from the Immigration Department, which issues one-week permits to visit the area, including Chum and Nubri valleys. Tourists have to pay $50 per person for the Chum valley during the tourist season and only $25 during off-season.

The tourists have to pay $70 per person for the Nubri valley during the season and $35 for off-season. If tourists want to visit the area for more than a week, extra charges apply. The Manaslu region, which is a restricted area, includes seven wards of Chumanubri rural municipality. From this year, the municipality has also started charging domestic tourists as well.

The municipality started collecting revenues from last September. The conservation area covers ward numbers 1 to 7 of Chumanubri rural municipality. Samagaun, Lho, Prok and Bihi VDCs fall under the Nubri valley whereas Chumchet and Chekampar constitute the Chum valley. The Manaslu region has been open to tourists since 2005.