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 Crosses Psychological 3,000-Point Mark with 30-Point Surge

The Nepal Stock Exchange (NEPSE) index has surpassed the psychological resistance level of 3,000 points. On Tuesday, the third trading day of the week, NEPSE rose by 30.49 points to close at 3001.80 points. On the previous trading day, Monday, the index had increased by 7.10 points, while it had dropped by 18.44 points on Wednesday. Before that, NEPSE had recorded continuous gains for eight consecutive trading days. On Tuesday, shares worth a total of Rs 18.52 billion were traded on NEPSE.

NRB to Invest Rs 2.92 Billion in Fixed Deposits

Nepal Rastra Bank (NRB) is preparing to invest Rs 2.92 billion in fixed deposits across various banks and financial institutions. The Bank’s Financial Management Department has opened proposals for investment. Commercial banks, national-level development banks, and finance companies can compete for the specified amounts.

Public Debt Surges by Over Rs 200 Billion in Last Fiscal Year

During the fiscal year 2024/25, Nepal’s public debt rose by more than Rs 200 billion. At the start of the last fiscal year, public debt was Rs 2.438 trillion, which increased to Rs 2.669 trillion by the end. According to the Public Debt Management Office, public debt grew by Rs 231.08 billion in one year, reaching 43.71% of the Gross Domestic Product (GDP). Internal debt stood at Rs 1.263 trillion, which is 22.14% of GDP, while external debt was Rs 1.401 trillion, or 24.56% of GDP.

Government Borrowed Rs 455 Billion in FY 2024/25

To sustain government spending, the KP Oli-led administration borrowed Rs 455.39 billion in fiscal year 2024/25, over Rs 100 billion more than the previous year. According to the Public Debt Management Office, the government borrowed Rs 358.02 billion in 2023/24. The target for 2023/24 was Rs 547 billion.

Governor Summons Bank CEOs and Chairpersons for Discussions on BAFIA Amendment

Nepal Rastra Bank Governor Dr. Biswo Nath Poudel has called separate meetings with the chairpersons and chief executive officers (CEOs) of commercial banks to discuss the proposed provisions of the BAFIA (Bank and Financial Institution Act) amendment bill and the second financial sector development strategy. On Tuesday, Governor Paudel held discussions with the CEOs of all commercial banks. On Wednesday, he will meet with the chairpersons of the banks’ board of directors.

 ‘Take and Pay’ Clause Creates Uncertainty in 4,967 MW PPA

A provision introduced in the current fiscal year’s budget—‘Take and Pay’—has created uncertainty for 4,967 MW worth of power purchase agreements (PPA) advanced by the Nepal Electricity Authority. The budget, unveiled on 15 Jestha, introduced this clause, putting 54 hydropower projects’ PPAs into limbo.

67% Financial Progress in Prime Minister Agriculture Project

The Prime Minister Agriculture Modernization Project has achieved 67% financial progress over nine years. The project, established in 2016 to develop agro-industries from agriculture-based economy, had a total budget of Rs 53.17 billion, out of which Rs 36.5 billion has been spent. The first phase ends in one year.

Government Starts Online Business Registration to Curb Fraud

Amid rising complaints of fraud in e-commerce, the Department of Commerce, Supplies and Consumer Protection has started registering online businesses under the E-Commerce Act, 2024. Complaints included non-delivery of items, fake shops, and delivery of poor-quality goods. Director Bharat Prasad Acharya said registration will help curb online scams.

New Structures to Be Built at ICP with Rs 1.06 Billion Budget

Two new structures worth Rs 1.06 billion will be built at the Integrated Check Post (ICP). The Nepal Intermodal Transport Development Committee has initiated plans for a warehouse, parking, and a connecting road to Koshi Highway. With World Bank loan support, Rs 410 million will be spent on warehouse and parking.

Office of Company Registrar to Provide Update Certificate Online Upon Fine Payment

The Office of the Company Registrar has announced that service seekers who submitted their annual reports within the previous fiscal year but failed to pay the applicable fines will now receive the company update certificate automatically online upon payment of the penalty. According to the office, companies that submitted their details by July 16 but did not pay the fines will now be able to receive the update certificate through an automated system once the fine is cleared.

Western Section of Muglin–Pokhara Road Unlikely to Be Completed on Time

The western section of the Muglin–Pokhara road is unlikely to be completed within the deadline. The Muglin–Pokhara Road Project (Western Section) has reported that only 55% of work has been completed on the section from Jamune to Seti Bridge in Pokhara. The final deadline is till mid-January 2026, but the project says the remaining work cannot be completed within this timeframe. So far, 36 km of single-lane road has been blacktopped.

Minister Dahal Inspects Nagdhunga Tunnel, Orders Completion

Minister for Physical Infrastructure and Transport Devendra Dahal conducted a field inspection of the Nagdhunga Tunnel early Tuesday morning. He visited the site along with officials from the Department of Roads and instructed for swift completion and operation of the tunnel.

Karnali Province Insures 16,000 Disaster-Prone Houses

In Karnali Province, disaster insurance has been provided to 16,072 houses deemed at risk, with a total insured amount of Rs 11.5 billion. This was announced during a “House Insurance Launch Program” organized by the Ministry of Internal Affairs and Law in Birendranagar, Surkhet.

Japan to Increase Loan Interest Rate to 2% from 2026

Starting 2026, Japan will increase the interest rate on loans provided to Nepal from 0.1% to 2%. According to Finance Ministry joint-secretary Dhaniram Sharma, Japan made this decision due to Nepal’s increase in per capita income. ADB and European banks are also expected to review their interest rates on loans to Nepal.

Rs 1 Billion in Damages to Rasuwa Dry Port Due to Floods

Floods on July 8 caused approximately Rs 1 billion in damage to the under-construction dry port in Rasuwa. The project, built with Chinese assistance in Timure since February 14, 2023, had achieved 81% progress. However, 55% of the structure was destroyed, necessitating reconstruction from scratch, according to the Intermodal Transport Development Committee.

Sugarcane Farmers Prepare Protest After Subsidy Cut

Sugarcane farmers are preparing for protests after the government eliminated subsidies in the FY 2025/26 budget. Since 2009, farmers had been receiving continuous subsidies. Raj Kumar Upreti, chair of the Sugarcane Producers Association, said a strong protest will begin after July 31 against the government’s decision.

Rasuwa Dry Port Site Deemed Unsuitable for Construction

The under-construction integrated check post (dry port) at Timure, Rasuwagadhi, is no longer deemed suitable for further development. During a meeting on Monday, the construction company’s project manager, Eng Li, suggested choosing a new location. The Nepal Intermodal Transport Development Committee confirmed the recommendation.

Churpi Export Hits Record High in FY 2024/25

Churpi (hardened cheese) exports reached a record high in FY 2024/25. According to the Customs Department, 2.6 million kg of churpi worth Rs 4.51 billion was exported. This surpasses the 1.786 million kg exported in FY 2022/23 and the 1.647 million kg worth Rs 3.18 billion in FY 2023/24.

Mugu District Sells Rs 40 Million Worth of Food Products

Mugu farmers sold Rs 40 million worth of food items (chino, kauno, red rice, beans, bitter buckwheat, sweet buckwheat, nafal, and barley) to other districts in FY 2081/82. According to acting chief Tej Bikram Malla of the National Agriculture Modernization Program, the produce was sold outside the district during the fiscal year.

Mutual Funds Rush to Announce Dividends

Mutual funds have started announcing dividends from profits of the fiscal year 2024/25. Dividends declared by open-ended funds can be reinvested as new units. So far, three open-ended funds have announced dividends. The declared dividends are inclusive of tax.

Himalayan Bank’s FPO Allotment Completed

Himalayan Bank’s Further Public Offering (FPO) has been allotted at its Kamaladi office. The FPO was open for public subscription from July 15 to 20. A total of 1,825,922 people applied, of which 121,649 applications were rejected, and 1,704,273 were approved.

Gold Price Drops, Silver Price Rises

Gold prices dropped on Tuesday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of hallmark gold dropped by Rs 600 per tola to Rs 193,000. On Monday, the price was Rs 193,600 per tola. Meanwhile, silver prices rose from Rs 2,295 to Rs 2,300 per tola.