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 35.09 points to Settle at 2,726: The Nepal Stock Exchange (NEPSE) index witnessed a significant decline today, falling by 35.09 points to settle at 2,725.71. This marks a drop of 1.27 percent. A total of 211,002,540 shares of 321 companies were traded today in 72,601 transactions, amounting to a total turnover of NPR 8.17 billion. Among the sectoral indices, only the Hydropower group showed a slight increase of 0.15 percent. All other sectors recorded a decline. The Banking sector experienced the largest drop of 2.46 percent, followed by Development Banks at 1.48 percent, Finance at 1.13 percent, Hotels and Tourism at 0.25 percent, Investment at 1.25 percent, Life Insurance at 1.36 percent, and Manufacturing & Processing at 0.78 percent.

ERC to Review and Simplify PPA Templates: The Electricity Regulatory Commission plans to review Power Purchase Agreement (PPA) templates. Currently, different PPAs are used based on project ownership—for example, Chhime, Rasuwagadhi under NEA; Khimti and Bhote Koshi with foreign investment; and regular private investors. To simplify systems and address investor concerns, the ERC is revising the template.

TwoThirds Govt Fails to Spark Economic Growth: Despite being governed by a twothirds majority coalition of the Nepali Congress and UML, the government has not triggered the expected economic uplift within one year. While some indicators show modest improvement compared to when the government was formed, experts say citizens have yet to experience concrete benefits. Nevertheless, the government and the Ministry of Finance are promoting the notion that economic activity has “taken a leap.”

FNCCI and NCC Applaud FY 2025/26 Monetary Policy: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Nepal Chamber of Commerce (NCC) have welcomed the FY 2025/26 monetary policy, believing it will boost economic activity and financial facilitation. They particularly appreciate adjustments to workingcapital loan guidance to better align with business types and repayment-income cycles. They urge that such provisions should also apply to production industries and construction.

Electricity Regulatory Commission to Study True Cost of Hydropower: On Sunday, the Electricity Regulatory Commission (ERC) unveiled its annual plan for the upcoming FY 2025/26, which includes a study to determine actual production costs of hydropower projects. Due to ambiguity around real costs, the ERC aims to develop accurate benchmarks. Currently, average cost per megawatt is estimated around NPR 200 million, but governmentbuilt projects appear higher in cost compared to private ones. The commission intends to decide on cost benchmarking.

NEA Still Unpaid by Govt Despite Requests for Loan: A public agency, Nepal Electricity Authority (NEA), which recently requested a loan of nearly NPR 1 billion citing inability to pay contractors, has still not been paid over NPR 1.4 billion by various levels of government. According to NEA’s Executive Director Hitendra Dev Shakya, the amount includes electricity sold at reduced rates under government conditions—including subsidies to coldstorage facilities and jute industries during COVID19. In those areas (NCHL, NCELL), the government had taken a policy to offer up to 50% discount on electricity revenue.

Online Shopping Surging Thanks to Social Media Ads: With the ability to purchase needed goods right from home, online shopping is rapidly growing. Recently, many people have been buying goods online after seeing ads on social media channels like Facebook, Instagram, WhatsApp, TikTok, etc. As ecommerce has soared thanks to technological advancement, challenges have emerged. Many consumers are being deceived in online purchases.

Paddy Plantation at 59% Nationwide: Currently, approximately 59% of paddy planting has been completed across the country. According to the Ministry of Agricultural Development, by Asar 29 (July 13), planting had been done on 816,405 hectares. Compared to last year, planting is about 8% down. Sudurpaschim Province leads with about 164,000 hectares planted, amounting to 93% of its total targeted area.

Pedestrian Overpasses in Kathmandu Languish Unfinished: Pedestrian overpasses planned at various locations along Kathmandu’s Ring Road remain derelict. In some areas, construction has progressed, notably the overpass in Balkhu which was previously abandoned. With ongoing dangers, pedestrians have been forced to take risks while crossing roads as incomplete footbridges are now moving ahead in construction.

Super Trishuli Hydropower Project 35% Complete: The construction of the 100 MW Super Trishuli Hydropower Project on the Gorkha–Chitwan border has reached 35% completion. Located near Fishling in Gorkha’s Gandaki Gaunpalika1 and Chitwan’s Ichchhakamana Gaunpalika3, three of the five gates have been built. Project team leader Gangesh Karn stated that despite various challenges, work is progressing quickly. Using Taiwanese technology, the plant is designed for a flow capacity of 7,800 cusecs and is built to withstand major floods.

Rising Complaints in Financial Underwriting at Insurance Regulator: Complaints about financial underwriting have been increasing at the Nepal Insurance Authority. This is due to agents issuing insurance beyond clients’ affordability for higher commissions. During proposal registration, agents must assess the insured’s financial ability and set premiums accordingly, but this isn’t always done. The Authority believes these underwriting practices must be regulated.

Export Subsidies to Be Replaced by Production-Based Incentives: The government is preparing to scrap export subsidies. Instead, it will disburse support based on production, as declared in the FY 2025/26 budget under “frugality policy,” point no. 372. A new national subsidy policy will be established to ensure targeted funding across all three levels of government and avoid duplication.

Nepal Oil Corporation Wins Land Dispute Case in Jhapa: The Nepal Oil Corporation (NOC) has succeeded in a land dispute over 23 bigha 3 kattha 13 dhur in Mechinagar13, Jhapa. About eighteen months ago (Chaitra 08, two years back), local individuals Chhatrabahadur and his sister Rita Karki filed a case in Jhapa District Court claiming that NOC encroached upon their 2 bigha of land and had fenced it. After roughly a year and a half, Judge Prakash Kumar Adhikari’s bench delivered a final order on Sunday, ruling that the claim lacked merit.

Uplift Project Invests NPR 7 million in Disaster Risk Mitigation in Jumla: The Uplift Project in Jumla has invested NPR 7 million in disaster-risk mitigation and earthquake-resilient structures. Hosted in collaboration with Sinja Rural Municipality and Caritas Germany, and run by PACE Nepal Jumla, the project has carried out various preparedness and capacity-building initiatives in wards 2, 3, and 6 of Sinja RM.

Nabil Bank to Issue NPR 3 billion in Debentures: Nabil Bank is set to issue NPR 3 billion worth of debt securities. Starting from Shrawan 6 (July 22), it will launch the 7year “Nabil Debenture 2032,” offering 3 million units at NPR 1,000 face value. Of this, 60% (i.e., NPR 1.8 million units) will be privately allocated, and the remaining 40% (NPR 1.2 million units) to the general public.

InDrive Hosts ‘Drivers Meet & Greet’ in Kathmandu: Ridesharing platform InDrive held a ‘Drivers Meet & Greet’ event in Kathmandu. The event aimed to express gratitude for drivers’ hard work and encourage interaction. There was direct interaction with drivers who shared their experiences.

Bandipur Cable Car & Tourism Limited IPO to Open from July 22: Bandipur Cable Car & Tourism Limited’s IPO will open from Shrawan 6 (July 22). The IPO is first targeted toward projectaffected locals and Nepali workers abroad. Of its NPR 2.83 billion issued capital, 20.70% shares—i.e., 5.86 million units—will go to the general public. With a face value of NPR 100 per share, 566,000 units are reserved for locals affected by the project. Nepal SBI Merchant Banking is the issue manager.

Betan Karnali Hydro Project Receives Generation License: The government has granted a generation licence to the 439 MW Betan Karnali Hydropower Project located on the Karnali River. The Ministry of Energy, Water Resources, and Irrigation provided the permit on Sunday. Suresh Acharya, the Secretary at the Ministry, handed over the licence to the CEO of Betan Karnali Sanchayakarta Hydropower Co. Ltd., Krishnaprasad Acharya.

Reliance–Chaudhary Group JV Acquires Soft Drink Plant in Makwanpur: Indian billionaire Mukesh Ambani’s Reliance Group, together with Chaudhary Group (CG), has invested in Nepal’s manufacturing sector. As a joint venture, CG Reliance Beverage Pvt. Ltd. has acquired the Ventuchura Bottlers Pvt. Ltd., a softdrink manufacturing company located in Manahari, Makwanpur.

Life Care Distributor’s Business Slumps by 13%: Life Care Distributor’s business declined by 13% in 2024 compared to 2023. The company’s revenue dropped from NPR 1.06 billion in 2023 to NPR 875 million in 2024. The downward trend is evident year over year.

Gold Price Increase on Monday in Nepal’s Market: Gold prices rose by NPR 400 per tola on Monday compared to Sunday, according to the Federation of Nepal Gold and Silver Dealers Association. As per their fixings, hallmark gold is now NPR 193,300 per tola on Monday. Earlier on Sunday, the price had been NPR 192,900 per tola. Similarly, silver prices also increased.