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Tuesday, August 26, 2025

Nepal News Evening Economic Brief – July 27, 2025

July 27, 2025
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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 Falls After 8-Day Rally, Index Drops by 18.44 Points: Nepal’s stock market declined on Sunday after eight straight sessions of gains. The NEPSE index fell by 18.44 points to close at 2,964. Although it crossed 3,012 by mid-session, selling pressure pulled it down. The 3,000-point mark again acted as resistance. Trading volume surged to Rs 26.57 billion—highest since August 18 last year—up from Rs 18.49 billion on Thursday. Hydropower led with Rs 11.62 billion in turnover, making up 43% of total trades. Development banks, microfinance, and manufacturing also crossed Rs 2 billion each.

Nepal Records Historic Export High in Fiscal Year 2024/25: During the last fiscal year 2024/25, Nepal set a historic record in exports; however, the export of many key value-added products has decreased. In that fiscal year, Nepal exported goods worth NPR 277 billion, the highest ever. Yet, the share of Nepali raw materials, agriculture, skill-based, and craft products in this export is low, which suggests Nepal may not gain significant benefits from this.

Total Deposits in Banks Reach NPR 7.245 Trillion, Exceeding Nepal’s Economy Size: As of last week, total deposits collected by banks and financial institutions stood at NPR 7.245 trillion. This amount exceeds the size of Nepal’s economy. The total deposits represent approximately 114 percent of Nepal’s Gross Domestic Product (GDP). It is known that banks and financial institutions are financial intermediaries. By collecting scattered savings and lending to those in need, banks and financial institutions perform the role of financial intermediaries.

Nepal Rastra Bank to Withdraw NPR 5 Billion Deposits from Market: Nepal Rastra Bank (NRB) plans to withdraw NPR 5 billion from the market. The central bank is set to auction a deposit instrument of 28 days maturity on Sunday for this amount. The deposit instrument will mature on August 24. Interest rates will be determined through auction, NRB stated. Banks and financial institutions can bid for any amount starting from NPR 100 million or in multiples of NPR 500 million.

Energy Minister Urges Assigning Nepal Electricity Federation for Managing Electricity Users: Energy, Water Resources, and Irrigation Minister Deepak Khadka urged that electricity consumers who cannot properly manage institutions should be entrusted to the Nepal Electricity Federation. The minister made this appeal at the 21st foundation day event of the Community Electricity Consumers Federation. He recalled that the Nepal government has already made such requests and the Authority had issued an official statement to that effect.

Capacity Expansion Work at Tribhuvan International Airport Enters Final Phase: The capacity expansion work at Tribhuvan International Airport has reached its final stage. Under the Air Traffic Capacity Enhancement Project, work including taxiway and apron expansion is almost complete. The Civil Aviation Authority of Nepal (CAAN) accelerated the capacity expansion in phases after updating the master plan due to a significant increase in passenger volume at Tribhuvan Airport.

Fourth Generation Mobile (4G) Users in Nepal Cross 25 Million: The number of customers using fourth-generation (4G) mobile services in Nepal has exceeded 25.4 million. According to the Telecommunications Authority, the number of 4G users based on SIM card sales reached 25,482,647. According to the Authority’s report until the end of Jestha, the number of Nepal Telecom customers purchasing 4G service reached 13,895,222.

Government Legalizes Domestic Alcohol Branding with New Regulations: The government has enacted a law to legalize domestic alcohol branding. The Department of Industry under the Ministry of Industry, Commerce, and Supplies has prepared procedures to grant licenses for establishing and operating traditional/local/home-made alcohol production industries. The procedures will be implemented within a month. “The procedures are ready. We will upload them on the Industry Department’s website within a day or two, then implement them after the Industrial Promotion Board meeting,” ministry source confirmed.

Department of Foreign Employment Suspends 350 Manpower Companies: The Department of Foreign Employment has suspended 350 manpower companies that could not send at least 100 workers in the last fiscal year. According to the Foreign Employment Act 2007, manpower companies failing to send 100 workers annually are subject to suspension. Director General Kamal Prasad Bhattarai said that until the government resolves obstacles and introduces new regulations, the suspension of these institutions will not be lifted. “There is a rule to send at least 100 workers by the end of fiscal year,” he said.

Nepal Suffers Huge Trade Deficit in Soya Bean Oil Despite Highest Export Volume: Nepal has suffered a significant trade deficit in soya bean oil, which is the most exported item. According to the Customs Department, Nepal exported soya bean oil worth NPR 10.679 billion in fiscal year 2024/25. In the same period, NPR 13.017 billion worth of raw soya bean oil and some prepared oil were imported. Thus, Nepal incurred a trade deficit of NPR 2.337 billion in this highest-exported product.

More than NPR 40 Billion Spent Annually on Paddy Rice Imports: Over NPR 40 billion is spent annually on importing paddy rice. Despite adequate local production potential, domestic supply cannot meet demand, leading to large imports. Customs Department data shows that in fiscal year 2024/25, rice imports amounted to NPR 4.018 billion. In the previous year, fiscal 2023/24, rice imports were NPR 2.222 billion.

Contract Agreement Signed for Damaged 25 km Section of BP Highway: The contract agreement has been signed and work is underway on the 25 km section of BP Highway damaged by floods in September 2024. A two-lane road is being constructed over the 30.5 km damaged stretch from Bhakunde Besi to Nepalthok. Currently, three packages have been created with two towards Kavre and one towards Sindhuli, and contracts signed. Contract agreement has been signed for the 11 km section from Bhakunde Besi to Char Sau Besi.

Bagmati Government Makes Embossed Number Plates Mandatory for Two-Wheelers: The Bagmati provincial government has made embossed number plates mandatory for two-wheeled vehicles. The Ministry of Labour, Employment, and Transport has mandated embossed plates starting fiscal year 2025/26. Ministry Secretary Birendra Dev Bhattari said, “From fiscal year 2025/26, embossed number plates will be mandatory when registering two-wheeled vehicles. The decision to install embossed plates depends on the vehicle owner’s wish, but registration (name transfer) will happen only after paying revenue for new or old vehicles.”

Six-Hour Load Shedding Scheduled in Most Areas of Western Chitwan on Sunday: On Sunday, there will be a six-hour power cut in most parts of Western Chitwan. The Chanauli Distribution Center of Nepal Electricity Authority (NEA) issued a schedule along with the notice on its Facebook page on Saturday. According to the notice, power will be cut on the feeder line from Narayani to Madi from 6 AM to 9 AM and from 3 PM to 6 PM. The Meghauli–Bijaynagar–Shukranagar feeder will have outages from 9 AM to 12 PM and from 6 PM to 9 PM.

Tribeni Customs Office Yet Lacks Basic Quarantine Facility: The Tribeni Customs Office, elevated to ‘Main Customs’ six years ago, remains nominally so. As the only customs office in Gandaki Province bordering India, its lack of quarantine construction has prevented export shipments. Located in Binayi Tribeni Rural Municipality-7, Nawalparasi (Bardghat–Susta East), this office, which received ‘Main Customs’ status in Falgun 2076, has no quarantine facility yet, resulting in zero clearance of exported goods.

Tourist Numbers Increase Annually at Nepal’s Only Hunting Reserve, Dhorpatan: The number of tourists visiting Dhorpatan, Nepal’s only hunting reserve, is increasing every year. According to Dhorpatan Hunting Reserve Office, Baglung, the number of domestic tourists visiting Dhorpatan has increased by 8,000 in the past year. Ranger Sagar Subedi of the reserve stated that in fiscal year 2023/24, 15,573 tourists visited Dhorpatan, which rose by 8,000 to 23,692 in fiscal year 2024/25.

Bailey Bridge Constructed over Lotikhol River in Changkheli Rural Municipality Connecting Humla and Mugu: A bailey bridge has been constructed over the Lotikhol River in Changkheli Rural Municipality, connecting Humla and Mugu districts. The project was completed at a cost of NPR 49.8 million. According to Chief Engineer Naresh Raj Jaisi of the Infrastructure Development Office, the 24-meter-long bailey bridge is located 10 meters above the Karnali River. The 3.15-meter-high bridge has three panels and three decks installed.

Tea Exports from Mechi Customs Office Increase by 32.5 Percent in Fiscal Year 2024/25: Tea exports from the Mechi Customs Office increased by 32.50 percent in fiscal year 2024/25. According to the office’s data, tea exports totaled NPR 421,359,200. Information Officer Ishwar Kumar Humagain said that 15,416.756 metric tons of tea were exported in one year. In fiscal year 2023/24, tea exports amounted to NPR 317,952,700.

River Falls Hydropower Gets Approval for Rights Issue at 1:1 Ratio: River Falls Hydropower has received permission to issue a rights share offering in a 1:1 ratio. The Securities Board of Nepal granted share issuance approval to the company on Friday. The company plans to issue shares worth NPR 700 million. With the rights issue, the company’s paid-up capital will reach NPR 1.4 billion.

Gold and Silver Prices Drop in Domestic Market on Sunday: The price of gold decreased in the Nepali market on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of hallmark gold, which was Rs 194,700 per tola on Friday, dropped by Rs 1,100 to Rs 193,600 per tola on Sunday. Similarly, the price of silver was Rs 2,290 per tola on Sunday, down Rs 50 from Friday’s price of Rs 2,340 per tola.