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 Suffers Major Fall, Drops by 52.87 Points

The Nepal Stock Exchange (NEPSE) witnessed a sharp decline on Wednesday, the fourth trading day of the week, with the index falling by 52.87 points to close at 2,949.19. This comes after a modest gain of 30.76 points on Tuesday, which had pushed the index to 3,002.07. On Monday, the index had risen by 7.10 points, while last week’s Wednesday had seen a drop of 18.44 points. Prior to that, the NEPSE index had shown consistent growth for eight consecutive trading days. Trading volume also saw a dip on Wednesday, totaling Rs 16.44 billion compared to Rs 18.24 billion the previous day.

Government Raises Full Domestic Debt, Only 58% External Debt in FY 2024/25

In the fiscal year 2081/82 (2024/25), the government successfully raised 100% of its targeted domestic debt but managed to mobilize only about 57.79% of the planned external debt, according to the Public Debt Management Office’s report up to mid-July. The government had set a target of Rs 330 billion for domestic borrowing, which was fully achieved. However, out of Rs 217 billion targeted for external borrowing, only Rs 125.39 billion was raised, falling short by approximately Rs 9.16 billion.

CEOs Show Leniency on NRB’s Provision to Separate Investors and Bankers

Chief Executive Officers (CEOs) of banks appeared lenient regarding the provision introduced by Nepal Rastra Bank to separate bank investors from businesspersons. In a discussion organized by the central bank on Tuesday, they expressed views that support the provision. Most banks participating in the discussion stated that the bill currently tabled in Parliament was good. However, one CEO informed that individuals with business backgrounds and investments in banks should be given adequate time and facilitation to exit from one sector.

Nepal Rastra Bank Withdraws Rs 25 Billion in Deposits Today

Amid excess liquidity in the banking system, Nepal Rastra Bank (NRB) today withdrew Rs 25 billion through its deposit collection instrument. The central bank used an auction mechanism to absorb the funds for a period of 42 days. Currently, total deposits in the banking sector have exceeded Rs 7.2 trillion. The central bank took this step to manage surplus liquidity and stabilize interest rates through deposit collection tools and the standing deposit facility.

CDSC Decision to Affect Rs 87 Billion Worth of Shares in 58 Industries

The recent decision of CDS and Clearing Limited (CDSC) regarding registration of dematerialized shares is expected to affect Rs 87 billion worth of shares from 58 industries in energy, media, and cement sectors, according to IPPAN. Among them, 47 energy projects with Rs 53 billion worth of shares and 37 companies that have applied to issue Rs 41 billion worth of shares will be negatively impacted, IPPAN stated in a press release on Tuesday.

Seven Insurance Companies Fail to Meet Paid-Up Capital Deadline

Although the deadline to increase paid-up capital ended last Poush, seven insurance companies have failed to meet the minimum capital requirement. According to the Insurance Board, two life insurance companies and five non-life insurance companies failed to comply. Life insurers were required to maintain a minimum paid-up capital of Rs 5 billion, and non-life insurers Rs 2.5 billion by the deadline.

Increased Tanker Transport Tariffs to Raise Fuel Prices for Consumers

The Nepal Oil Corporation board’s decision to increase transportation tariffs for fuel-carrying tankers will burden consumers with price hikes. The board meeting last Friday decided to raise transportation rates by 4.75% to 5.90%, and the management is preparing for implementation.
These increased costs, driven by the interests of tanker owners and NOC management, are passed on to consumers through retail prices.

Sunkoshi-Marin Diversion Project Advances Slowly Despite Breakthrough

The Sunkoshi-Marin Multipurpose Diversion Project, which was initiated in 2010 to provide year-round irrigation to around 122,000 hectares of land in Dhanusha, Mahottari, Sarlahi, Rautahat, and Bara, is progressing slowly. Although a tunnel breakthrough was achieved a year ago, dam construction has not moved forward effectively. The project is crucial for providing irrigation to the Madhes Province, which has been declared drought-affected by the federal and provincial governments.

Social Security Fund Must Be Made More Scientific, Say Stakeholders

The contribution-based Social Security Fund is not only in the interest of workers but also of industrialists and entrepreneurs, and it must be made more scientific. Speakers at an orientation organized by Butwal Chamber of Commerce and Industry and the Social Security Fund’s Butwal branch emphasized that there is still a lack of awareness among the public about the fund and called for clearer information.

Govt Plans to Legalize Traditional Alcohol Production and Sale

The government is preparing to legalize the production and sale of traditional and homemade alcoholic beverages. The Ministry of Industry, Commerce, and Supplies is making policy arrangements to allow production and sales through cooperative institutions. A study report prepared by the Department of Industry proposes that licenses for production, processing, blending, bottling, packaging, and distribution of local, indigenous, and traditional alcohol should be issued to cooperatives.

 India’s BIS Requirement Halts Export of Steel Utensils from Nepal

Exports of steel utensils from Nepal have halted after India mandated the Bureau of Indian Standards (BIS) logo for raw materials used in steel production. Previously, BIS was required only on finished products. The new rule introduced about two months ago now requires BIS certification even for imported raw materials, affecting industries in Bhairahawa’s Special Economic Zone (SEZ).

Rs 20 Billion FDI Approved for Processed Buffalo Meat Factory in Sindhuli

A direct foreign investment of Rs 20 billion has been approved for a processed cooked buffalo meat factory under construction in Sindhuli in partnership with China. The investment by Chengdu Jian Food Company Limited, Sichuan Province, China, was recently approved by Nepal’s Department of Industry. This is the first time such a large investment has been approved under a single project for factory establishment.

Free Wi-Fi Services Causing Rs 14 Billion Annual Loss to Telecom Companies

Free Wi-Fi hotspots provided by internet service providers have caused an annual loss of Rs 14 billion to telecom service providers Nepal Telecom and Ncell. An internal study conducted by both companies revealed that they each incur an average annual loss of Rs 7 billion due to widespread use of free Wi-Fi services across the country.

FNCCI President Warns BAFIA Amendment Could Harm Economy

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the proposed amendment to the Bank and Financial Institutions Act (BAFIA) would adversely affect Nepal’s economic activities. Speaking at a financial and monetary policy program organized by Nepali Congress’s Financial Institutions Coordination Department in Kathmandu on Tuesday, he warned that if the proposed changes are passed without revisions, it could have a serious impact on economic dynamics.

First Section of 400kV Transmission Line from Tamakoshi to Kathmandu Completed

The first section of the 400kV Tamakoshi–Bahrabise–Kathmandu transmission line has been completed. This section, from Khimti (Tamakoshi) to Bahrabise in Sindhupalchok, will allow electricity to flow from Bahrabise via Khimti to the Terai and Kathmandu. The first section, Khimti–Bahrabise, is 44 km long. Both segments of the project are progressing at a similar pace.

31,225 Foreign Tourists Visit Changunarayan Temple in One Year

A total of 31,225 foreign tourists visited the Changunarayan Temple, listed as a World Heritage Site, in the past year. According to Sabita Basnet, head of the Changunarayan Tourist Information Center, 5,756 tourists came from India and other SAARC countries. In addition, 25,459 tourists came from European countries. Changunarayan collected revenue of Rs 11,910,400 from foreign tourists.

Over 68,000 Vehicles Imported Through Birgunj Customs Last Fiscal Year

A total of 68,743 vehicles entered Nepal through the Birgunj customs point in the last fiscal year.
According to Chief Customs Officer Deepak Lamichhane, the imported vehicles included unassembled motorcycles to cranes. Vehicle imports account for the second-highest revenue source. Rs 17.31 billion was collected in revenue from fuel-powered vehicles alone during the last fiscal year.

Over 100 Million Kg of Garlic Imported Through Mechi Customs

A large quantity of garlic entered Nepal through the Mechi customs point as an agricultural product. According to Mechi Customs Office data, 102,119,620 kilograms of garlic were imported. The customs valuation amounted to Rs 1.30 billion, and Rs 336.7 million in revenue was collected.

Nepal Infrastructure Investment Fund to Issue IPO Worth Rs 300 Million

Nepal Infrastructure Investment Fund Limited is set to issue an Initial Public Offering (IPO) to the public. The company has appointed Laxmi Sunrise Capital Limited as the issue and sales manager. It will issue 3 million units of ordinary shares with a face value of Rs 100 per share, totaling Rs 300 million.

NMB Bank Signs Loan Investment Agreement with Mandakini Hydropower

NMB Bank and Mandakini Hydropower have signed an agreement for loan investment in the Upper Sardi Khola Hydropower Project located in Machhapuchhre Rural Municipality, Kaski. This is a sole-loan investment by the bank. The 2.9 MW project will cost about Rs 661.89 million, of which Rs 463.32 million will be financed through the bank.

NIC Asia Bank Offers Share Loan at 8.17% Interest

NIC Asia Bank has announced a share mortgage loan at an 8.17% interest rate. The bank introduced this plan with a competitive rate (average base rate plus 1% premium) to support the stock market. The loan is offered against the mortgage of shares.

Gold Price Rises by Rs 1,400 per Tola on Wednesday

The price of gold increased by Rs 1,400 per tola on Wednesday. The Federation of Nepal Gold and Silver Dealers Association has fixed the price of gold at Rs 194,400 per tola for today. On the previous day, it was Rs 193,000. A week ago, on Saun 7, the price of gold had reached Rs 197,600 per tola. The price of silver has increased by Rs 10 per tola.