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.

Nepal Stock Market Closes Fiscal Year 2024/25 with Strong Gains: On the final day of fiscal year 2024/25, the Nepal stock market ended on a positive note with encouraging growth. The Nepal Stock Exchange (NEPSE) index rose by 34.61 points, closing at 2794.78. Market capitalization reached NPR 4.6569 trillion. Alongside the index increase, trading volume also saw a significant rise, exceeding NPR 1.4 billion. The boost in the market index was driven by the end of the year-end hangover, a positive monetary policy, and falling interest rates in banks and financial institutions.

Interest Rates Drop for Shrawan After NRB Policy Shift: Commercial banks have reduced interest rates for Shrawan after Nepal Rastra Bank (NRB) eased its monetary policy and excess liquidity persisted in the system. NRB recently cut the policy rate from 5% to 4.5%, and other key rates, prompting banks to lower deposit rates. As a result, 14 banks have slashed their maximum fixed deposit rates, 4 kept them unchanged, and 2 slightly increased them. The average maximum interest rate for individual fixed deposits has dropped from 5.902% in Ashar to 5.687% for Shrawan.

Government Secures Nearly Rs 274 billion in Foreign Aid Commitments in Current Fiscal Year: The government has secured foreign aid commitments amounting to nearly Rs 274 billion for the current fiscal year 2024/25. To implement various projects, the government signed commitment letters with bilateral and multilateral foreign donors for this assistance. According to the Ministry of Finance, the total commitment received so far stands at Rs 273.4 billion. By the end of the last month (Asar), commitments included grants worth Rs 5.75 billion and loans amounting to Rs 215.54 billion.

Loan Recovery Improves, But Banks Worry Over Local Obstruction: Encouraged by NRB incentives and improved loan recovery by the end of current fiscal year, bankers reported positive signs from auctions and sales of non-banking assets. However, a lack of cooperation from local governments in verifying land access during auctions remains a concern. “In Terai-Madhesh, locals did not issue road recommendations, and the same problem is now emerging in hilly regions, Pokhara, and even Kathmandu Valley,” a banker shared.

Rs 233 billion Spent in Just 30 Days at Fiscal Year-End: Government agencies continued the trend of last-minute overspending and fund transfers at the end of the fiscal year. On the last 30 days of Asar alone, Rs 233 billion was spent—15.37% of the year’s total expenditure. Over the last two months (Jestha and Asar), nearly 23% of the year’s total spending—Rs 358 billion—occurred. By fiscal year-end, total government expenditure reached Rs 1.515 trillion, according to the Office of the Auditor General.

Government Approves Printing of New 1,000 Rupee Banknote: The government has approved the printing of a new 1,000-rupee banknote. The note will bear the signature of the newly appointed Nepal Rastra Bank Governor, Biswo Poudel. The Cabinet recently gave its consent based on a proposal from the Ministry of Finance, approving the design and size of the new banknote to be issued by Nepal Rastra Bank.

Nine National Pride Projects Lag Behind with Under 50% Progress: Out of the national pride projects announced 15 years ago, only three have been completed, while nine others remain below 50% physical progress, according to data submitted by the National Planning Commission to the National Development Problem Resolution Committee. Lagging projects include Sikta Irrigation, Lumbini Development Trust, Kathmandu-Tarai Fast Track, Sunkoshi-Marin Diversion, Mahakali Irrigation, Budhigandaki Hydropower (1,200 MW), MCC transmission lines, and President Chure Conservation Program.

Parliament’s Public Accounts Committee Seeks SEBON Compliance Status: The Public Accounts Committee under the federal parliament has asked the Securities Board of Nepal (SEBON) to report on the implementation of previous directives. Committee Chair Santosh Chalise said the Finance Committee had issued various instructions to SEBON at the end of Jestha and sent a letter four days ago asking for updates. The letter was prompted by apparent negligence in implementing the directives.

Only 56.77% of Budget Spent on Pride Projects in 11 Months: In the first 11 months of FY 2081/82 (till end of Jestha), only Rs 33.61 billion out of the Rs 59.21 billion allocated to national pride projects was spent—just 56.77%. Analysts have criticized the ineffective use of funds, saying many projects were designated as national pride projects without sufficient groundwork. They added that weak implementation of procurement and financial laws and lack of accountability hindered overall project execution.

New Casino Rules Set 5 km Border Limit with Security Mandates: Investors wishing to open casinos within 5 kilometers of the international border must now meet specific security standards under new rules issued after 12 years. Previously, a 2013 directive prohibited casinos within 3 kilometers of the border. This has now been changed to 5 kilometers, accompanied by mandatory security standards for such establishments.

Nepal Tourism Board Approves Budget Ahead of Time for the First Time: For the first time, Nepal Tourism Board has passed its budget before the end of Asar. The board approved a Rs 1.6 billion budget for FY 2082/83 (2025/26) on Tuesday. According to Budget Committee Coordinator Rishi Bhandari, the budget prioritizes international promotion and marketing of Nepal’s tourism. This is the first early budget approval since new regulations were introduced in 2072.

Nepal Opens Legal Channel for Private Sector to Send Workers to Korea: After nearly two decades of government-to-government (G2G) labor dispatch to South Korea, Nepal has opened the door for private sector involvement. The Ministry of Labor, Employment, and Social Security has issued new procedures allowing private recruitment agencies to send skilled workers to Korea. This comes 19 years after the establishment of the EPS Korea office under the G2G model.

Electric Bus Service Begins in Kathmandu with 12 New Vehicles: Mahanagar Yatayat has begun electric bus service in Kathmandu, introducing 12 new 33-seater e-buses on Wednesday. The Chery & Wanda brand city buses were handed over by authorized distributor Shasheela Motors. All buses are fully electric, with a 4,300 mm wheelbase, 25% gradeability, a maximum speed of 69 km/h, and capacity for 68 passengers (33 seated). They include 120/240 kW motors, CATL 144.97 kWh battery systems, disc and drum brakes, air suspension, and high-quality pneumatic dual circuit braking systems.

Rasuwagadhi Hydropower Faces Prolonged Halt After Flood Damage: Energy, Water Resources, and Irrigation Minister Deepak Khadka has said that it will take time for the 111 MW Rasuwagadhi Hydropower Project to resume operation after sustaining severe damage from a recent flood in the Bhotekoshi River. Informing the National Assembly, the minister stated that the project’s head box was completely destroyed, and reconstruction efforts will require a considerable period. The flood also caused serious damage to other hydropower plants and transmission structures along the Trishuli corridor.

Nepal-India Border to Close Temporarily Due to Indian Elections: The Nepal-India border points in Baitadi and Darchula will be closed due to upcoming panchayat elections in India’s Uttarakhand state. According to Chief District Officer Punya Bikram Paudel, the crossings will be sealed on July 24 and 28, the dates of the elections in Uttarakhand.

Flights Disrupted at Resunga Airport for Past Two Weeks Due to Bad Weather: Regular flights at Resunga Airport in Gulmi have remained disrupted for the past two weeks due to adverse weather conditions. The last flight took place on June 28 after which poor visibility and rain have halted operations. Although a flight departed from Kathmandu on July 8, it was forced to return without landing after hovering for about 20 minutes over Resunga due to unfavorable weather.  Seasonal disruptions during the monsoon months of June and July have frequently affected flight schedules at hilly airports like Resunga.

9-km Road Connecting Byas and Myagde in Tanahun Upgraded and Blacktopped: A nine-kilometer road connecting Ranitari in Byas Municipality-5 to Ghumti in Myagde Rural Municipality-4 has been blacktopped. The road, previously an earthen route, has now been upgraded and is expected to serve as an alternative to the Prithvi Highway. According to Rabindra Tiwari, head of the Infrastructure Development Office, the project was completed one year ahead of schedule under a Rs 366.29 million contract.

Yak Herds from Dolakha Cross into Tibet for Summer Grazing: Yaks from Lapchi in Bigu-1, Dolakha, have crossed into Tibetan grazing lands as usual during the monsoon season. As Lapchi lacks grazing during this time, herders move across the border with their animals. This year, about 300 yaks from 11 herding groups have gone to Chinese pastures. “We bring them back in winter when grasses regrow in Nepal,” said a local herder.

Reconstruction of Long-Stalled Postal Highway Segment Begins: Reconstruction of the 16-kilometer Narayanchowk to Tribeni section of the Postal Highway in Bardaghat, Nawalparasi, has resumed after a six-year delay. Due to inaction by the contractor, the road—originally scheduled for completion by December 2022—remained in limbo. After multiple deadline extensions failed, locals and elected representatives staged protests demanding progress. Construction is now in full swing.

Court Clears Path for Kohalpur-Surkhet Transmission Line Expansion: A court verdict has cleared the way for expanding the 132 kV transmission line from Kohalpur in Banke to Surkhet, the capital of Karnali Province. Chief Minister Yam Lal Kandel said the obstruction in Baijnath Rural Municipality Wards 1 and 4 was resolved following the ruling. According to project head Ravi Chaudhary, work will now proceed to complete the line within six months. A dispute in Birendranagar-11 Subbakuna has also been settled.

Nepal Life Insurance Earns Rs 10 billion in Premiums on its 25th Anniversary: Nepal Life Insurance Company has earned Rs 10 billion in first insurance premiums as it marks its 25th year since establishment. The company has called this a historic record in Nepal’s life insurance industry. On this occasion, CEO Prabin Raman Parajuli thanked the board of directors, insured customers, agents who serve as the backbone of the company, staff, shareholders, regulatory bodies, and all stakeholders who contributed tirelessly to achieving this milestone.

Himalayan Bank Launches FPO to Maintain 30% Public Shareholding: Himalayan Bank will issue a Further Public Offering (FPO) from Wednesday to maintain 30% public shareholding as required by the Banking and Financial Institutions Act. The bank plans to issue 9,250,469 units of FPO shares. Under the law, commercial banks, development banks, finance companies, and microfinance institutions must allocate at least 30% of their shares to the public.

Omni Motors Logs Rs 794 million in Trade Over 9 Months: Omni Motors Pvt. Ltd. has recorded Rs 794 million in trade in the first nine months of the current fiscal year. The company traded Rs 726 million in 2024, Rs 698 million in 2023, Rs 2.28 billion in 2022, and Rs 2.01 billion in 2021.

Gold Dips to Rs 192,000 per Tola: The prices of both gold and silver declined in the Nepali market on Wednesday, according to the Federation of Nepal Gold and Silver Dealers Association. The price of printed gold fell by Rs 1,300 per tola, bringing it down to Rs 192,000. On Tuesday, gold was traded at Rs 193,300 per tola. Similarly, silver prices also dipped by Rs 15 per tola. Silver, which was priced at Rs 2,275 on Tuesday, is now being traded at Rs 2,260 per tola.