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.

Share Market Sees Sharp Fluctuations on Sunday, Closes Near Previous Day’s Level: The share market experienced significant volatility on Sunay, the first day of the week. After closing at 2,870 points on the previous trading day, the market rose by 52 points to reach 2,922 at around 1 PM. However, selling pressure increased afterward, and the market ultimately closed at 2,870 points, the same level as the previous day. Without the adjustment for the weighted average price during the last 15 minutes, the market would have closed at 2,867 points, showing a drop of 2.87 points compared to the previous day. After this adjustment, the NEPSE index rose marginally by just 0.32 points compared to the previous day.

NRB Withdraws Rs 50 billion Liquidity from Banking System: Nepal Rastra Bank (NRB) has withdrawn NPR 50 billion liquidity from the banking system. The central bank has already withdrawn around NPR 675 billion which banks have not been able to invest. The additional Rs 50 billion liquidity was withdrawn on Sunday. NRB plans to process liquidity through the deposit collection instrument called “Bolkabol” for 42 days to manage liquidity in the banking system.

Revenue Investigation Department’s VCTS System Faces Technical Issues: The Vehicle and Consignment Tracking System (VCTS) of the Revenue Investigation Department under the Prime Minister and Council of Ministers’ Office has experienced technical problems. Although maintenance work is ongoing, the department has requested printing transportation information on paper for goods movement today. The department mandates entering details of goods transported for commercial purposes in the VCTS system before moving goods from one place to another.

Federal Government’s Contingency Fund Shows a Deficit of Rs 205 billion: The federal government’s contingency fund has a deficit of Rs 20.5 billion. The deficit arose due to the government’s inability to balance revenue receipts and payments. Partial improvement was noted in fiscal year 2024/25, with a saving of Rs 2 billion in the fund. However, adjusting accounts from previous years still shows an overall deficit.

Nepal Insurance Authority to Introduce Risk-Based Premium Policy for Non-Life Insurance: Nepal Insurance Authority is set to introduce a policy for determining premiums based on risk for non-life insurance. The policy will charge higher premiums for higher risk and lower premiums for lower risk. It will also differentiate premiums for insurance of similar property based on geography, district, and province. Currently, premiums are based mainly on claim ratios and do not vary by geography despite differing risks.

NRB Issues Guidelines on Dividend Distribution for Non-Bank Payment Institutions: Nepal Rastra Bank has issued the “Guidelines on Dividend Distribution for Payment Institutions (Other than Banks and Financial Institutions), 2025.” The guidelines aim to ensure transparency and orderly distribution of profits and dividends earned by licensed payment institutions. The central bank informed that the guidelines intend to regulate profit sharing in institutions permitted to conduct payment-related activities.

Nepal Tourism Board to Open Permanent Office in India to Promote Nepal Tourism: The Nepal Tourism Board is set to open a permanent office in India to promote tourism in Nepal. Since India is the largest source market for tourists visiting Nepal, the board plans to establish the office in Delhi to advance tourism promotion programs. Announcing that 70 percent of the current fiscal year 2025/26 budget will be spent on international market promotion, the board stated that the permanent office aims to establish Nepal as a safe, reliable, and attractive tourist destination through these promotional efforts.

661 Entrepreneurs Selected for Startup Loans, 600 Have Received NPR 886.6 million: Out of 661 entrepreneurs selected for startup loans in the current fiscal year, 600 have received a total of NPR 886.6 million. During field inspections, the National Industrial Development Organization found that 61 entrepreneurs did not receive loans due to no business activity as proposed, being blacklisted, or failure to provide documentation. The organization had called for project proposals for loan disbursement on August 27, 2024.

Government Halves Sugarcane Farmer Incentive Subsidy Amid Supply Pressure: Facing supply pressure, the government has halved the incentive subsidy given to sugarcane farmers. The Cabinet meeting on July 7 reduced the subsidy amount to NPR 35 per quintal from the previous NPR 70 per quintal. Despite the decline in farming due to low subsidies and support prices, the government knowingly cut the subsidy amount.

Around 600 New Industries Registered in First Six Months of Fiscal Year 2024/25: A government study report reveals that nearly 600 new industries—small, medium, and large—were registered nationwide in the first six months of fiscal year 2024/25. According to Nepal Rastra Bank’s semiannual economic activity study, these industries have created employment for 25,637 individuals. Citing data from the Industry Department, the study shows that 581 industries were registered in six months across the country.

Provinces Focus Budget on Tourism Infrastructure: Budgets of provinces are largely focused on constructing tourism infrastructure, developing religious and cultural destinations, and promoting tourism. All provinces prioritize tourism infrastructure in their budgets. Sudurpashchim Province has adopted the slogan “Tourism Infrastructure as the Basis for Prosperity.” Similarly, Gandaki, Karnali, Bagmati, and Koshi provinces have allocated budgets for building access roads, trekking routes, and other tourist facilities to key tourism sites.

Internal Revenue Office Birgunj Collects Over Rs 9.45 billion Revenue in Last Fiscal Year: The Internal Revenue Office in Birgunj has collected Rs 9.45957 billion in revenue in the last fiscal year. This is NPR 2.58 billion more compared to fiscal year 2023/24. Chief Tax Officer Tikaraj Chaulagain stated that the revenue collection growth rate over the previous fiscal year was 35.57%.

Customs Office in Bhairahawa Collects Rs 9.519 billion Revenue in Fiscal Year 2024/25: The Customs Office in Bhairahawa, Rupandehi, collected Rs 9.519 billion in revenue during fiscal year 2024/25, covering the period from last year’s mid-July. This amount accounts for 87.07% of the revenue target. The office had set a revenue target of Rs 10.933 billion for the fiscal year.

12,512 Foreign Tourists Visited Manaslu Region in Last Fiscal Year: In the last fiscal year, 12,512 foreign tourists visited the Manaslu region. In fiscal year 2023/24, 9,783 tourists had visited Manaslu, showing an increase of 2,729 tourists compared to the previous year. During the COVID-19 pandemic, only 194 tourists visited in 2020/21, 2,282 in 2021/22, and 7,705 in 2022/23.

Residents Demand Halt of Upper Tamor Hydropower Project in Taplejung: Residents of the affected area in Taplejung protested, demanding a halt to construction of the 285 MW Upper Tamor Hydropower Project. They claim that the project site at Yakthung (Limbu) community’s Mundhum (sacred place) is being disturbed. The Upper Tamor Hydropower Affected Struggle Committee has been formed by locals to oppose the project.

Extension Expected for Butwal–Narayangadh Road Expansion Project: The deadline for the Butwal–Narayangadh road expansion project is ending on Shrawan 8 (July 24). An extension of nearly one year is planned. So far, physical progress of the Narayangadh–Butwal stretch of the East-West Highway has reached only about 70%. Except for the Daunne road section, traffic has become much easier compared to before, though incomplete infrastructure remains at some places.

National Life Insurance to Buy Habib Bank Shares in Himalayan Bank at NPR 118 per Share: National Life Insurance plans to purchase shares of Pakistan’s Habib Bank held in Himalayan Bank at Rs 118 per share. Along with National Life, Prabhu Mahalaxmi Life Insurance and Himalayan Bank investors Ram Prasad Acharya and another woman have also applied. However, only National Life Insurance Company has fulfilled the conditions to sell Habib shares in Himalayan Bank.

Samriddhi Finance and Pokhara Finance to Merge: Samriddhi Finance and Pokhara Finance have agreed to merge. The two institutions signed a merger agreement on Sunday. Both companies have requested Nepal Stock Exchange (NEPSE) to suspend trading of their shares in light of the merger. Currently, Pokhara Finance has a paid-up capital of NPR 108 million, and Samriddhi has NPR 81 million. The ratio of the merger has not yet been finalized.

Ncell’s ‘Sadhai On Krodhpati’ Plan Suspended Following Regulatory Intervention: Telecom service provider Ncell’s recently launched ‘Sadhai On Karodpati’ (Always On Millionaire) plan was suspended following intervention by the Nepal Telecommunications Authority (NTA). While many companies promote products through customer reward plans, the NTA’s sudden intervention in Ncell’s plan is unusual. Ncell claims the plan was initiated with prior approval from the authority to reward its customers.

Gold Price Rises by NPR 800 per Tola on Sunday: On Sunday, the price of gold increased by Rs 800 per tola. The Federation of Nepal Gold and Silver Dealers’ Association fixed the gold price at Rs 193,300 per tola for the day, compared to Rs 192,500 per tola the previous day. Silver prices also rose by Rs 5 per tola.