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 Crosses 2,700 on Wednesday as Banking Sector Leads Market Rally: The stock market surged again on Wednesday, with the NEPSE index surpassing 2,700 points. Compared to the previous trading day, the index rose by 22.04 points to reach 2,705. Share prices of 199 companies increased, while 49 declined. Trading volume also saw a rise—from Rs 6.57 billion on the previous day to Rs 7.45 billion today. The banking sector, considered the most influential, led the rally with a gain of 1.68 percent. Other sectors also posted gains: development banks rose by 0.34%, hotels and tourism by 0.28%, hydropower by 0.54%, investment by 1.37%, life insurance by 0.24%, manufacturing and processing by 0.95%, microfinance by 0.85%, non-life insurance by 0.24%, others by 0.30%, and trading by 0.34%.

Government Must Settle Most Payments by Wednesday, Says Comptroller’s Office: Today (Wednesday) marks the final day for government bodies to make payments for expenditures under the current fiscal year 2081/82 (2024/25). The Office of the Comptroller General has prohibited public institutions from issuing checks after Asar 25 (July 9), except for essential payments. This means that all expenditures—other than absolutely necessary ones—must be settled by Wednesday. As of Tuesday, the government had only utilized 78.84 percent of its allocated budget.

Finance Ministry Directs NEPSE Restructuring Amid Repeated Study Recommendations: About two months ago, the Ministry of Finance sent a letter to the Securities Board of Nepal (SEBON) to proceed with the restructuring of NEPSE. Multiple reports have consistently recommended such reform. The Economic Reform Commission, led by Rameshwor Khanal and formed by the government on Ashoj 20, 2081 BS, also advised restructuring to improve the national economy. Despite repeated recommendations, the Finance Ministry’s response so far has been limited to formal directives.

Rs 3 billion Rasuwagadhi Border Point in Crisis After Flood Destroys Infrastructure: The Rasuwagadhi border point, built with nearly Rs 3 billion investment to boost trade with northern neighbor China, now faces an existential crisis. A flash flood on Tuesday morning swept away the Nepal-China Friendship Bridge and caused major damage to customs infrastructure. Customs officer Rabindra Pyakurel said the site has regressed “by 10 years” in terms of physical facilities. A detailed damage assessment is still underway.

Supreme Court Orders CSR Funds Be Spent Only on Poor and Marginalized Groups: The Supreme Court has ruled that Corporate Social Responsibility (CSR) funds from banks, financial institutions, and businesses must not be used for infrastructure but instead solely for upliftment of the poor and marginalized. Justices Hari Prasad Phuyal and Nripadhwaj Niraula stated that CSR funds earmarked for social responsibility must be directed toward targeted social welfare.

Finance Ministry Issues Readiness Checklist for Foreign Aid Projects: The Ministry of Finance has introduced the “Readiness Filter 2082″—a checklist to assess preparedness for foreign-aided projects. The checklist aims to streamline pre-implementation, maintain project quality, enhance inter-agency coordination, and promote ownership by executing agencies.

Commercial Bank Loan Rates Drop Below 8% for First Time in Years: The average weighted interest rate on loans issued by commercial banks has dropped below 8%, reaching 7.99% by the end of Jestha 2082, according to Nepal Rastra Bank. The rate was 10.15% a year ago. The peak was 13.03% during Magh and Falgun 2079, showing a substantial decrease of 2.16 percentage points over a year.

Gold and Silver Traders Protest with Demands for Tax Removal: Gold and silver traders, along with artisans, have launched protests putting forward various demands. The Nepal Gem and Jewelry Federation and the Nepal Gold and Silver Dealers’ Federation organized a rally followed by a corner meeting in Kathmandu on Wednesday. One of their key demands is the removal of the 13% Value Added Tax (VAT) imposed on diamonds and other precious stones. They have also demanded that the 2% luxury tax levied on gold be scrapped.

Insurance Authority Calls for Swift Claims Processing of Rasuwagadhi Hydropower: The Nepal Insurance Authority has directed insurance companies to promptly provide detailed damage reports from the Rasuwa flood and to expedite the settlement of claims in a fast and hassle-free manner. The damaged Rasuwagadhi Hydropower Project is insured under Himalayan Everest Insurance Company. The project suffered significant damage following a flood in the Lhendhe River, which originates in Tibet, China.

Citizens to Receive Rs 200,000 in Health Insurance Coverage Starting Shrawan 1: Citizens enrolled in Nepal’s Health Insurance Program will now be eligible for up to Rs 200,000 in treatment coverage starting Shrawan 1. Health and Population Minister Pradeep Paudel announced the doubling of the existing Rs 100,000 ceiling. This increase applies to patients with eight categories of serious illnesses.

 Second Segment of Kathmandu’s Ring Road Expressway Survey Completed: The second-phase survey of Kathmandu’s Cross-Ring Outer Peripheral Transport Highway (CRoPTH) has been completed by a Chinese technical team. The team, which arrived on Baisakh 6, included engineers from China CCCC First Highway Consultants and Xi’an Fangzhou Engineering Consulting. The 8.2 km segment surveyed spans from Kalanki to Basundhara Culvert.

Nepal Tourism Board Races Against Time to Finalize Budget Before Fiscal Year-End: Nepal Tourism Board—the only public-private partnership model in the tourism sector—is under pressure to finalize its budget before the fiscal year ends on Asar 25. CEO Deepak Raj Joshi said the board is working to meet the statutory deadline and begin implementation from Shrawan.

Setikhola Hydropower Cascade Project Secures Financial Agreement: A financial agreement has been signed for the construction of the 9.8 MW Setikhola Hydropower Cascade Project. The agreement was signed between Setikhola Hydropower Limited and Nepal Infrastructure Bank Ltd (NIFRA), with Chairman Anup Acharya and CEO Krishna Bahadur Adhikari representing the respective sides. The project is to be built across Seti River in Pokhara-33 and Shuklagandaki-8 of Tanahun.

Flights Surge in Simikot as China Allows Kailash Pilgrimage via Hilsa Border: Following China’s approval for Indian pilgrims to travel to Kailash Mansarovar via Hilsa in Humla, flights to Simikot Airport have sharply increased. Currently, up to 49 flights operate daily, including fixed-wing flights from Nepalgunj to Simikot and helicopter services from Simikot to Hilsa. This marks the highest flight frequency since the COVID-19 pandemic, said Civil Aviation Authority official Mahendra Singh.

Egg Prices Skyrocket by Rs 145 Per Crate in Just Three Months: Egg prices in Nepal have surged by up to Rs 145 per crate in the past three months. According to the Nepal Layers Poultry Association, extreme summer heat led to a 25% drop in egg production, pushing up wholesale prices. Medium-sized eggs rose from Rs 320 to Rs 465 per crate, large from Rs 450 to Rs 495, and XL eggs from Rs 470 to Rs 510.

Organic Fertilizer Centers Established in Salyan to Promote Pesticide-Free Farming: To promote pesticide-free farming, two organic fertilizer processing centers have been established in Salyan—one in Bangad Kupinde Municipality and another in Kumakh Rural Municipality. Using biodegradable natural waste like leaves and grass collected from forests, the centers process fertilizer without the use of dung. This marks the first such initiative in the district.

Mayor Sampang’s Refusal to Approve Unlawful Payments Delays Dharan’s New Budget: Mayor Harka Sampang’s resistance to approving unlawful payments has stalled Dharan Sub-Metropolitan City’s budget for fiscal year 2082/83. Though the Local Government Operations Act requires budget presentation by Asar 10, Dharan had yet to prepare a draft by Asar 24. The budgeting process remains stuck in its preliminary stage.

Irregularities at Rolpa Local Units Reach Rs 1.23 billion: Irregular expenditures at local levels in Rolpa district have reached Rs 1.237 billion, according to the 62nd report of the Office of the Auditor General. This marks a rise from Rs 1.053 billion in the 61st report for fiscal year 2079/80. The latest report shows Rolpa Municipality alone has irregularities worth Rs 111.43 million in FY 2080/81.

Asian Life Insurance Opens Rights Share Issue from Today: Asian Life Insurance Company has opened applications for its rights shares starting today. The company is issuing 42% rights shares—amounting to a total of 14,279,312 units at a face value of Rs 100 each. The issue manager for the sale and distribution is Muktinath Capital.

Radhi Hydropower to Sell Promoter Shares in Rapti Hydro & General Construction: Radhi Bidyut Company Limited has decided to sell 1.29 million promoter shares it holds in Rapti Hydro and General Construction Ltd. The decision was made in a board meeting held Tuesday. The shares will be sold on the secondary market at the prevailing market price, as disclosed in a public notice.