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 Ends Slightly Lower, Trading Volume Shrinks to Rs 19.36 Billion: The Nepal Stock Exchange (NEPSE) fell by 2.07 points on Monday, continuing Sunday’s 18.44-point decline. Although the index had risen by 12 points mid-session, final adjustments brought it down to 2962.13 points. Trading volume dropped to Rs 19.36 billion from Rs 26.57 billion the previous day. Out of the traded companies, 156 saw price declines while 94 gained. Development banks (+3.04%) and trade (+3.24%) sectors led the gains, while banking, hydropower, insurance, and tourism sectors declined.

U.S. to Continue Millennium Challenge Corporation Projects in Nepal: The United States has decided to continue projects under the Millennium Challenge Corporation (MCC) Compact in Nepal. The Ministry of Finance issued an official notice confirming this. Previously, the U.S. Embassy in Nepal had indicated MCC would continue. After Donald Trump became U.S. President, foreign aid to many countries was paused pending a 90-day review; now aid to Nepal will resume.

World Bank Doubles Interest Rate on Loans to Nepal to 1.5% Starting July: The World Bank has increased the interest rate on loans provided to Nepal, with the new rate taking effect from July. Dhaniram Sharma, head of the Foreign Aid Coordination Division at the Ministry of Finance, shared this information on Monday during an orientation program on the foreign aid operation system. The event was jointly organized by the Nepal Association of Financial Journalists (NAFIJ) and the Ministry of Finance. According to Sharma, the interest rate on development assistance that Nepal has been receiving from the World Bank has been raised from 0.75 percent to 1.5 percent.

Nepal Airlines Corporation Receives Award in India: Nepal Airlines Corporation received the award for Best Air Service Provider on the Nepal route at the 10th International Tourism Conclave and Travel Awards (ITCTA) 2025 held in New Delhi. The award ceremony was held on July 26 at Hotel Le Meridien. The honor was jointly presented by ICM Group’s chairman and managing director Ajay Gupta and Indian government representative Nasir Aslam Bani, according to Nepal Airlines spokesperson Subash Dangui.

Tribhuvan International Airport Overwhelmed by Passenger Volume: Tribhuvan International Airport (TIA) has reached a point where it cannot handle the passenger load while ensuring flight safety, smooth travel, and flight operations. Though it has an annual capacity of 8 million passengers, over 4.65 million passengers used its services in the first six months of 2025 alone. According to the Civil Aviation Authority of Nepal, from January to June 2025, 4,655,078 passengers traveled via air, compared to 4,662,425 in the same period in 2024.

Hydropower Projects Generate RS 380.3 Million in Royalties in Fiscal Year 2024/25: Hydropower projects generated RS 380.3 million in royalties during fiscal year 2024/25. Including dues from the previous fiscal year, the Department of Electricity Development reports a total collection of RS 380.3 million in royalties to date. According to Section 11 of the Electricity Act, 1992, license holders must pay RS 100 per installed kilowatt annually for 15 years after starting commercial production, plus 2% of the average sale price per unit of electricity.

Suggestions to Reduce Excessive Commissions and Expenses Given to Oil Business Operators: Nepal Oil Corporation’s commissions, rents, and other expense categories given to gas and petroleum business operators have been found excessive. Various high-level committees have suggested reductions. In 2022, a task force led by then National Planning Commission Vice-Chair Dr. Bishwa Nath Paudel (now Governor) studied transport rents and related expenses and directed cost reductions. However, instead of implementing these directions, the corporation management has decided to increase transport fares to fulfill vested interests.

Government Introduces New Tourism Policy After 17 Years: After 17 years since the Tourism Policy 2008, the government has introduced a new tourism policy. The Ministry of Culture, Tourism, and Civil Aviation has published the ‘Tourism Policy 2025’ to be implemented soon. The policy includes provisions to allow the private sector to operate airports. It encourages private sector investment in building and operating national and international airports as part of tourism infrastructure expansion.

NEA Executive Director Shakya Visits Chitwan to Resolve Distribution Center Issue: To quickly resolve the problem observed at the Chanauli distribution center in Chitwan, Nepal Electricity Authority’s Executive Director Hitendra Dev Shakya arrived in Chitwan early this morning. While the Authority’s technical team is preparing to regularize electricity supply from today itself, Shakya personally came to understand the issues, provide immediate solutions, and encourage his staff to expedite work. This visit counters rumors spreading that the Authority started load-shedding from Chitwan.

RS 4.9 Billion Revenue Collected from House and Land Transactions in Fiscal Year 2024/25: In the recently concluded fiscal year 2024/25, RS 4.9067 billion was collected in revenue from house and land transactions. This is RS 703 million higher than the previous fiscal year, showing an approximate 17% increase. On average, monthly revenue collection was RS 408.72 million last year compared to RS 350 million in the previous fiscal year.

Nepal Telecommunications Authority Restricts Random Wi-Fi Hotspot Operations: Nepal Telecommunications Authority will no longer allow internet service providers (ISPs) to operate Wi-Fi hotspots arbitrarily. Only mobile service providers are permitted to offer services via Wi-Fi. The Authority issued a notice warning that others must comply or face action. The notice states that mobile service providers alone can deliver Wi-Fi service, and other providers may only operate for limited times and areas per legal provisions.

Karnali Province Builds 246.59 Kilometers of Blacktopped Roads Since Government Formation: The Ministry of Physical Infrastructure and Urban Development of Karnali Province has constructed 246.59 kilometers of blacktopped roads so far. Ministry spokesperson Ramesh Subedi stated that 173.75 km of road were blacktopped by fiscal year 2023/24 and 72.84 km in fiscal year 2024/25.

Proposed Nepal Fertilizer Project in Nawalparasi Estimated to Cost Nearly RS 300 Billion: The proposed Nepal Fertilizer Project (chemical fertilizer factory) in Bardghat, West Nawalparasi, is estimated to require nearly RS 300 billion in investment. The detailed project report (DPR) prepared by the German company DIAG Industries shows the chemical fertilizer plant will require 300 megawatts of electricity to operate. The DPR, completed after almost two years of preparation by DIAG, is currently under study by the Investment Board Nepal.

Government Plans 500 Deep Boreholes to Address Drought in Madhesh Province: To address drought in the Madhesh Province, the government is preparing to drill 500 deep boreholes immediately to provide irrigation and drinking water. Previously, government plans to provide low-cost irrigation and water services were not feasible due to electricity tariffs. The government has set electricity charges for irrigation at RS 2.25 per unit and RS 4.20 per unit for drinking water purposes.

Bhairahawa Customs Office Fails to Meet Revenue Target in Previous Fiscal Year: The Bhairahawa Customs Office could not meet its revenue collection target in the last fiscal year. The Customs Department had set a revenue collection target of RS 109.33 billion for the fiscal year 2024/25. The office has also reported failing to meet revenue targets according to plans not only last year but since 2021 as well.

Technical Issues in Nepal Oil Corporation’s Pipeline Infrastructure at Amlekhgunj: Technical problems have been detected in the pipeline infrastructure at Nepal Oil Corporation (NOC) in Amlekhgunj. The infrastructure built as part of the second phase has faced issues even before its formal inauguration. According to the corporation, there are problems in the loading bay/TLF shed area connected to the fuel storage tanks. Vibrations during tanker fuel loading, alignment changes, and visible pipeline bending have been observed.

RS 20 Billion Foreign Investment Approved for Buffalo Meat Factory in Sindhuli: With partnership from northern neighbor China, a Thermal Processed Cooked Buffalo Meat Factory is planned to be constructed in Sindhuli. Nepal’s Industry Department has approved RS 20 billion in direct foreign investment (FDI) for this project. According to Dr. Nabin Sharma, project chief and chairman of Himalayan Food International Pvt. Ltd., Nepal’s partner company, the approval was granted last Thursday to operate the factory.

Indian Brand Bikaji Foods to Produce Premium Snacks in Nepal: Bikaji Foods, an Indian brand, will now manufacture its premium snacks in Nepal. Chaudhary Group has entered a strategic partnership with India’s Bikaji Foods. The partnership is a 50-50 joint venture between Chaudhary Group and Bikaji Foods International Limited. Through this agreement, products like Bhujia, Namkeen, Papad, and packaged sweets from Bikaji will be produced locally in Nepal.

Nivix Pharmaceuticals Signs Agreement with Muktinath Capital for Share Issuance Guarantee: Nibiks Pharmaceuticals recently signed an agreement with Muktinath Capital to manage guarantees related to issuing ordinary shares to the public. The agreement was signed by Nivix Managing Director Indra Baniya and Muktinath Capital CEO Kavindra Dhwaj Joshi. The signing ceremony was attended by the company’s Chairman Kalidas Paudel, Director Pharmacist Sujan Chandra Sigdel, Chartered Accountant Anil Paudel, and others.

CG Brewery Nepal Reports RS 2.21 Billion Business in Nine Months of Last Fiscal Year: Chaudhary Group’s CG Brewery Nepal reported business worth RS 2.21 billion in the first nine months of the last fiscal year. This is a 16% increase compared to the same period the previous year. Based on this figure, the annual business for the year is projected to be RS 2.95 billion.

Gold Price Remains Stable in Domestic Market on Monday: The price of gold in Nepal’s market remained stable on Monday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of hallmark gold was RS 193,600 per tola on Sunday and was traded at the same price on Monday. Meanwhile, silver prices have seen a slight increase.