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.

NEPSE Drops by 0.14 Points Today: The Nepal Stock Exchange (NEPSE) index has slightly declined today. The NEPSE index dropped by 0.14 points, settling at 2,683.86 points. A total of 150,27,372 shares from 304 companies were traded in 56,276 transactions today, resulting in a total turnover of NPR 5.57 billion (Rs. 5,741,668,14). Despite the overall drop, several sector indices saw gains. The Development Bank sector rose by 0.41%, Finance by 1.25%, Hydropower by 0.59%, Investment by 0.08%, Manufacturing and Processing by 0.37%, Microfinance by 0.07%, and Trading by 0.38%. However, the rest of the sector indices declined.

Floods Cripple Major Hydropower Projects in Rasuwa, 200 MW Supply Disrupted : Massive floods entering Nepal from the Kerung and Lende rivers in China have caused severe damage to major hydropower projects in Rasuwa district. According to Baburaja Maharjan, Chief Executive Officer (CEO) of Chilime Hydropower Company, power production of up to 200 megawatts has come to a halt due to the floods. CEO Maharjan said that the 111-MW Rasuwagadhi Hydropower Project, the 60-MW Trishuli 3A, the 21-MW Trishuli, and the 15-MW Devighat project are currently non-operational. Among them, Rasuwagadhi and Trishuli 3A have sustained significant damage and cannot be restored to operation anytime soon.

Supreme Court Rejects Interim Order to Halt Appointment of Poudel as Governor: The Supreme Court has refused to issue an interim order to suspend the appointment of Dr. Biswo Poudel as Governor of Nepal Rastra Bank. The bench comprising Justices Kumar Regmi and Mahesh Sharma dismissed the petition seeking to annul Poudel’s appointment. However, the Supreme Court has given priority status to the petitions filed against Poudel’s appointment. Three separate writ petitions were registered in the Supreme Court claiming the appointment was illegal. Advocates Bishal Thapa, Prativa Upreti, and Anantaraj Luintel filed a writ on May 27 demanding the cancellation of Poudel’s appointment.

Nepal’s Balance of Payments Records Rs 491.44 billion Surplus: Nepal’s balance of payments (BoP) has recorded a surplus of Rs 491.44 billion. In the first 11 months of the current fiscal year, the amount of foreign currency entering Nepal has exceeded the amount going out by this figure. According to Nepal Rastra Bank, the surplus during the same period last year was Rs 424.70 billion, and in the previous month, it stood at Rs 438.52 billion. In just one month, the surplus has increased by around Rs 53 billion.

New Record Set in Remittance Inflow: A new record has been set in the inflow of remittances. In the month of Jestha alone, remittances worth Rs 176 billion entered Nepal, marking the highest monthly remittance inflow to date. Prior to this, in Baisakh, the country had received Rs 165 billion in remittances. With this, the total remittance inflow in the first 11 months of the current fiscal year has reached Rs 1.532 trillion. This is 15.5% higher than the amount received during the same period last year.

Nepal’s Economy Expected to Expand by 4.8% in Q3: Nepal’s economy is estimated to expand by 4.8% in the third quarter (Magh–Chaitra) of the current fiscal year 2081/82 (2024/25). According to statistics published by the National Statistics Office, this estimate is based on a comparison with the same quarter of the previous fiscal year 2080/81. All economic sectors are expected to show positive growth during this quarter. The construction sector appears to have gained momentum during this period.

Nepal’s Inflation Drops Further to 2.72 Percent: Inflation in Nepal has declined further. According to data published by Nepal Rastra Bank on Tuesday, the year-on-year point-to-point consumer inflation stood at 2.72% as of the end of Jestha. During the same period last year, inflation was at 4.17%. According to the central bank, during the review period, inflation in the food and beverage group was 0.54%, while inflation in the non-food and services group stood at 3.94%. Last year, these two groups had inflation rates of 5.85% and 3.097%, respectively.

Capital Spending in Asar Triples Compared to Monthly Average: As in previous years, capital budget spending has surged sharply in the month of Asar this fiscal year. In the first 11 months of the fiscal year, the average monthly capital expenditure was Rs 7.49 billion. However, in the first 20 days of Asar alone, Rs 24.65 billion was spent—more than triple the average. According to the Office of the Financial Comptroller General, only Rs 1.2 billion in capital expenses had been recorded by the 20th of Shrawan, 2081 BS (August 4, 2024) the first month of the current fiscal year.

Flood at Rasuwagadhi Causes Billions in Damages, Say Traders: Flooding at Rasuwagadhi, one of the two major Nepal–China border points, has caused damage worth billions, according to traders. They reported that containers and electric vehicles imported from China were swept away by the flood, resulting in massive losses. According to Kaesang Nurpu Tamang, former president of the Rasuwa Chamber of Commerce and Industry, the vehicles awaiting customs clearance were parked at the customs yard. A sudden large flood swept away and submerged those vehicles.

148 Rice Varieties Registered in Nepal; Interest Grows in Local Types: According to the Seed Quality Control Center, 148 rice varieties have been registered or listed in Nepal. Among them, 94 varieties are domestically produced, including 2 hybrid varieties. Of the 148, 54 are imported varieties, with 48 of those being hybrid. Farmers often prefer hybrids for higher yield. However, in recent times, they have shown growing interest in local rice varieties. More than a dozen native rice seed varieties have been registered. Some unregistered native varieties are still being cultivated by farmers.

Nepal Enforces National Taxi Standards with Three Categories: The government has classified all taxis operating in Nepal into three categories and enforced national standards accordingly. The Ministry of Physical Infrastructure and Transport implemented the “National Standard for Vehicles Used as Taxis 2081” starting Baisakh 30 (May 13), after revising the previous standards. Under the new classification, taxis in Nepal are divided into Ordinary, Deluxe, and Luxury categories.

Nepal’s Economy Runs on Remittance, But State Fails to Honor Laborers, Says Kulman Ghising: Speaking at a felicitation program organized by the Nepali community in Doha, Qatar, Kulman Ghising stated that Nepal’s economy is being sustained by remittances—money earned by Nepalis sweating it out in the Gulf countries, far from their families. However, he added that the state has failed to properly recognize and honor the contributions of these hardworking individuals. Ghising emphasized that the ‘Ujyalo Abhiyan’ (Light Campaign) was launched to instill hope and belief among Nepalis that change is possible within the country itself.

Tourist Road Construction Abandoned in Thakurdwara, Bardia: A road being constructed in the tourist area of Thakurdwara in Thakurbaba Municipality, Bardia, has been left incomplete. Due to the contractor’s failure to complete work on time, the road in Ward No. 9—considered the main tourist area of the municipality—has been abandoned. After the contractor stopped midway, the area has become unsightly. The long-standing piles of gravel at the site have created problems for pedestrian and vehicle movement in a busy tourist zone.

Farmers Hopeful About Reopening of Shree Ram Sugar Mill: Farmers in Garuda Municipality–5 in Rautahat are hopeful about the reopening of the long-closed Shree Ram Sugar Mill. The management recently stated that the mill could resume operations if liabilities to banks, employees, and suppliers are resolved, giving farmers renewed hope. Owned by the Golchha Group, the mill was shut down on Shrawan 10, 2077 BS (July 25, 2020), citing massive losses and compulsion. Following continuous protests from political party representatives and sugarcane farmers, along with government intervention, the management has stated that reopening will be considered only after resolving financial obligations.

Investment Secured for 47.7 MW Kalika Gandaki Hydropower Project: Investment has been secured for the 47.7 MW Kalika Gandaki Hydropower Project promoted by Maulakali Hydropower Company. Led by Agricultural Development Bank and co-led by Citizens Bank, other investors include Prabhu Bank, Laxmi Sunrise Bank, Shangrila Development Bank, and Hydroelectricity Investment and Development Company Ltd. (HIDCL). The total estimated cost of the project is Rs 10.15 billion, of which 75%—Rs 7.6 billion—will be financed by banks. The remaining 25% will be covered by the promoters.

Hailstorm Destroys Over 500,000 Apple Trees in Jumla: According to the Agriculture Development Office in Jumla, hailstorms on Baisakh and Jestha have damaged orchards across 8 municipalities. As per the office, 7,192 farmers lost a total of 508,426 apple saplings to the hailstorm. Among them, 175,205 were saplings expected to bear fruit this year, said Office Chief Rambhakta Adhikari. Apple farming covers 4,250 hectares in Jumla. However, the hail completely destroyed orchards across 29,021 ropani (1,475 hectares), according to data.

Lower Mid Rawakhola Hydropower Appoints RBB Merchant to Manage IPO: The under-construction 4 MW Lower Mid Rawakhola Hydropower Project in Khotang has appointed RBB Merchant Banking as its IPO issue manager. Under the agreement, RBB Merchant will issue 1 million primary shares with a face value of Rs 100, totaling Rs 100 million. The agreement was signed by Shambhu Prasad Ghimire, Executive Chairperson of the project, and Badri Prasad Pyakurel, CEO of RBB Merchant.

Himalayan Bank to Issue Rs 1.45 billion FPO from July 16: Himalayan Bank is set to issue a Further Public Offering (FPO) starting from Asar 32 (July 16). The bank plans to issue 9,250,469 FPO shares at a par value of Rs 100 and an additional premium of Rs 57, totaling Rs 157 per share, worth Rs 1.452 billion, in order to increase the public shareholding to 30%.

Him Star Energy Opens IPO Worth Rs 77.3 million: Him Star Energy Company’s Initial Public Offering (IPO) is now open for applications starting Tuesday. The company received approval from the Securities Board of Nepal to issue 773,975 shares at Rs 100 each, totaling Rs 77.397 million. The general public can apply for the IPO until Asar 27 (July 11). If insufficient applications are received during this period, the deadline will be extended to Shrawan 6 (July 22).

Kailash Helicopter Generates Rs 535 million Revenue in Nine Months: Kailash Helicopter Services has recorded a business turnover of Rs 535 million in the first nine months of the current fiscal year. In previous years, the company had revenues of Rs 794 million (2024), Rs 702 million (2023), Rs 404 million (2022), and Rs 321 million (2021). Kailash Helicopter, a leading company in the rotor-wing industry, was converted into a public company in 2023.