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 Records Rs 2.12 trillion in Transactions in FY 2024/25: While several sectors of Nepal’s economy remained sluggish, the secondary securities market saw a historic surge in trading volume during the fiscal year 2024/25. Other stock market indicators also experienced notable improvements during the same period. According to data from the Nepal Stock Exchange (NEPSE), securities transactions in FY 2024/25 totaled RS 2.124 trillion, a significant rise from RS 734.68 billion in FY 2023/24. This marks a 189.23% increase year-on-year. Previously, the highest record was in FY 2020/21, with transactions worth RS 1.454 trillion.

Minimum Wage Raised to Rs 19,550; PM Oli Hails Decision: Prime Minister KP Sharma Oli has said that progress is not possible without labor and prosperity cannot be achieved without respecting workers. Expressing happiness over the increase in the minimum wage for workers effective from Shrawan 1 (July 17), Prime Minister Oli made the statement through Facebook. “Earlier, we had initiated a contribution-based social security program to secure the future of workers. So far, around 2.1 million workers have been enrolled in it,” he wrote. The monthly minimum wage has been increased from Rs 17,300 to Rs 19,550.

Land Revenue Offices Collect Rs 51.42 billion in Revenue in FY 2024/25: The Land Revenue offices across the country collected Rs 51.42 billion in revenue in the last fiscal year 2024/25. This is the huge amount collected from the land revenue offices that maintain the entire details of the nation’s land administration. Minister for Land Reform, Cooperative and Poverty Alleviation Balaram Adhikari claimed that the ministry and its line agencies carried out impressive performance in the fiscal year 2024/25.

Nepal Airlines Corporation Has Paid Off Aircraft Loans Until Mid-July 2025: Nepal Airlines Corporation has cleared its aircraft loan payments up to July 16. The corporation announced through a press release that it has fully paid off the installments for two narrow-body aircraft until July 16 and partially paid Rs. 53.995 million towards the loans for two wide-body aircraft by the same date.

Ministry of Finance Issues Detailed Guidelines for Implementation of FY 2025/26 Budget: The Ministry of Finance has issued detailed guidance to implement the budget of the upcoming fiscal year 2025/26. The guidelines emphasize strict financial discipline in agricultural sector budget spending and timely completion of development projects. According to point number 45 of the guidelines, for large projects such as irrigation, canals, and dams costing over Rs. 50 million, the construction contractors will be responsible for maintenance for at least five years after project completion.

Foreign Exchange Facility for Passport Fees Now Available in Foreign Currency Accounts: The central bank has issued directives to allow the foreign currency settlement facility related to passport fees for foreign travel to be available in the foreign currency accounts of the concerned individuals. The central bank added provisions to allow these settlement facilities—both for passport fees and official visits—to be deposited into foreign currency accounts (including by opening new accounts if necessary).

Ministry of Finance Issues Circular for Three-Shift Work in Development Projects: The Ministry of Finance has issued a circular to work in three daily shifts in development projects to accelerate project implementation. The budget implementation guidance for the fiscal year 2025/26, effective from today, states that project work should be intensified with three-shift arrangements. “The project chief will be selected based on internal competition to ensure effective implementation and timely completion. If the minimum score specified in the performance contract is not achieved, the official will not be transferred during the project period,” the Ministry said.

Budget Implementation Guidance Requires 50% Physical Progress of Projects by Third Quarter: The government has mandated that physical progress of at least 50% of projects must be achieved by the third quarter of the current fiscal year. The budget implementation guidance effective from Thursday states that payments should be made based on the physical progress and quality of projects. However, physical progress is not mandatory for payments during the first quarter.

India’s Tariff Cut on Crude Palm Oil Hits Nepal’s Refinery Oil Exports: Nepali refinery oil industries, which have long relied on exports to India, are facing setbacks after India slashed customs duties on crude palm oil to protect its domestic industries. These Nepali industries have been importing crude palm oil from Malaysia and Indonesia by paying a 10% customs duty and 13% VAT. After refining it, the processed oil was exported to India under the South Asian Free Trade Agreement (SAFTA).

Cooperative Department Issues 102-Point Directive to Improve Cooperative Sector: The Cooperative Department has issued 102 integrated directives titled ‘Integrated Directive 2025’ to promote good governance in cooperative organizations. According to the directive, institutions must provide loans of more than Rs. 300, 000 only against individual or collective guarantee or collateral. Loans should be sector-wise classified, with at least 50% invested in productive and income-generating businesses. The interest rate spread between loans and savings should be maintained at a maximum of 6%.

Post-COVID Credit Surge Linked to Real Estate and Stock Market Boom: Following the COVID-19 pandemic, bank lending surged significantly, and corresponding increases were observed in both the stock market and real estate transactions, according to data trends. Although land transactions rose notably in fiscal year 2024/25, revenue collection remained relatively low. Officials from the Department of Land Management and Archives attribute this to most deals occurring in peri-urban areas where land prices are comparatively lower. However, despite no rise in the number of registered deeds last fiscal year, revenue increased—possibly due to transactions involving higher-value land.

147 Hydropower Projects Granted Survey Permits in FY 2024/25: The Department of Electricity Development granted survey permits for 147 hydropower projects with a combined capacity of 8,776 megawatts in the last fiscal year 2024/25. According to the Ministry of Energy, the department also issued survey permits for solar projects totaling 1,851 megawatts during the same period. According to the Ministry, production licenses have been issued for a total of 277 projects, including 265 hydropower projects with a combined capacity of 10,751 megawatts and 13 solar projects with a combined capacity of 99 megawatts.

Government Provided Startup Loans to 600 Projects in FY 2024/25: In the fiscal year 2024/25, the government provided loans to 600 projects under the startup enterprise loan program. According to the Industrial Business Development Institute’s Startup Enterprise Loan Operating Procedure 2080, 661 projects with innovative ideas, skills, and capacities were selected for loans during that year. Out of them, only 600 projects successfully received startup loans.

Domestic Airlines Must Follow Civil Aviation Authority’s Decision to Park Aircraft Outside Kathmandu: Domestic airlines are now compelled to comply with the Nepal Civil Aviation Authority’s decision from June 19, 2022, requiring aircraft to be parked outside Kathmandu. The decision mandates that aircraft operators use the assigned operational base airport for overnight parking and that the first flight of the day must depart from the same airport. Following this decision by the CAA three years ago, domestic airlines based in Kathmandu must now send their planes to locations outside Kathmandu for overnight parking.

Rahughat Hydropower Deadline Extended for Third Time: The civil contract deadline for the 40-megawatt capacity Rahughat Hydropower Project under construction in Myagdi, promoted by Raghuganga Hydropower, a subsidiary of the Nepal Electricity Authority, has been extended for the third time. Rahughat is a much-awaited project in Myagdi. Indian civil contractor Jaiprakash Associates (JP) had signed a contract worth Rs 6 billion on November 17, 2017 (Mansir 6, 2074) with a target of completion in 45 months. The deadline, which was extended for the first time in February 2022 and the second time in February 2022, expired on June 27.

Carpet Industry in Bara-Parsa Industrial Corridor Begins Exporting to Third Countries: Prestige Carpet Industries, located in the Bara-Parsa Industrial Corridor, has started exporting its products to third countries. Last Thursday, the industries exported 30,000 square meters of carpet through Sukha Bandar Port to these countries. According to Aman Sah, Director of the industries, their products have begun to be exported to countries including the United Arab Emirates, Kenya in Africa, and the United States of America.

Underground Electrification Work Halted During Monsoon in Central Bharatpur: The underground electrification work underway in the main area of Bharatpur Metropolitan has been stopped due to the monsoon season. The work was halted because of difficulties in underground work during rains and the refusal of the Road Division Office to allow digging of roads and sidewalks. Ananda Subedi, chief of Nepal Electricity Authority’s Pokhara-Bharatpur Distribution System Strengthening Project, informed that the work has been suspended for three months.

Itahari and Dharan Sub-Metropolitan Enter Budget Vacuum from First Day of FY 2025/26: Itahari and Dharan sub-metropolitan cities in Koshi Province have been legally without budgets since the first day of the fiscal year 2025/26. The proposed bills and budgets submitted in the municipal assemblies have not been passed, resulting in a legal budget vacuum in both sub-metropolitan cities. According to the Local Government Operation Act, budgets must be presented by June 24 and discussed and passed by July 9.

Prabhu Helicopter Enters 10th Year of Operation: Prabhu Helicopter has entered its 10th year of establishment. On this occasion, Prabhu Helicopter Limited Chairman Subash Amatya expressed gratitude to all for their support over the past decade and pledged to provide even higher-quality services in the future. A decade ago, the company operated under the name Muktinath Helicopter. In 2015, Prabhu Group acquired all its shares and rebranded it as Prabhu Helicopter.

Prices of Gold and Silver Increase in Nepali Market on Friday: In the Nepali market, the prices of both gold and silver rose on Friday. According to the Federation of Gold and Silver Dealers’ Association, compared to the previous day, the price of gold increased by Rs. 200 per tola and silver by Rs. 15. On Friday, the price of hallmark gold was fixed at Rs. 192,500 per tola. Similarly, the price of silver was fixed at Rs. 2,280.