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.

Stock Market Drops on Last Trading Day of The Week, NEPSE Falls by 31.50 Points

The Nepal Stock Exchange (NEPSE) index fell by 31.50 points on Thursday, following a decline of nearly 48 points the previous day. With this drop, the NEPSE index closed at 2,922 points. The market remained volatile throughout the day. The highest point of the day was recorded at 2,967 points at 11:24 AM, while the closing figure was the lowest. Trading volume also declined. Compared to Wednesday’s turnover of Rs 16.44 billion, today’s turnover dropped to Rs 15.98 billion. Share prices of 52 companies increased, while 198 saw a decline.

Cabinet Approves Rs 35 Billion in Concessional Loans for Key Projects

The government has approved concessional loans worth Rs 35 billion, along with 18 other decisions made during the Cabinet meeting held on July 28. Among the major decisions, the Cabinet agreed to accept a $137 million (approximately Rs 18.92 billion) concessional loan from the World Bank for the third phase of the Rani Jamara Kulariya Irrigation Project. Additionally, the government has decided to accept another concessional loan of $86.7 million from the World Bank for the Electricity Distribution System Upgrade and Strengthening Project.

Minister Dahal Directs Speed-Up of Thankot-Chitlang Road Upgradation

Minister for Physical Infrastructure and Transport, Devendra Dahal, has instructed that the Thankot-Chitlang road upgradation be expedited. After inspecting the road on Thursday, he stated that the Thankot-Chitlang section, a shorter route connecting Kathmandu, would contribute to economic development and prosperity. He expressed confidence that the road would facilitate the transportation of agricultural produce from Makwanpur to Kathmandu and promote tourism, thus boosting the economy.

Kathmandu-Tarai Fast Track Delay Increases State Burden

The Kathmandu-Tarai/Madhes Fast Track project remains stalled increasing the project’s cost burden on the state. Despite an agreement to complete the project in four years, even half the work has not been completed in eight years. The Ministry of Physical Infrastructure and Transport formally handed the project over to the Nepal Army on August 11, 2017. The total cost of the project is Rs 211.93 billion. So far, Rs 80.54 billion has been spent.

Labour Ministry Publishes 22-Point Reform Commitment

The Ministry of Labour, Employment, and Social Security has unveiled a 22-point commitment focused on labor administration, employment (domestic and foreign), social security, skills development, and institutional reforms. The commitments were announced during the annual review of the Ministry, Foreign Employment Department, Social Security Fund, Foreign Employment Board, and Labour and Occupational Safety Department for fiscal year 2024/25.

Nepal Must Revise Laws for LDC Graduation

Nepal must significantly amend its laws to graduate from the category of Least Developed Countries (LDCs) to Developing Nation status. A study report prepared by the National Assembly’s Development, Economic Affairs, and Good Governance Committee recommended repealing five laws, amending 29, and introducing three new acts for the transition.

Government to Accept Foreign Aid Only for Well-Prepared Projects

The government will now accept foreign aid only for well-prepared projects. Due to ineffectiveness in unprepared projects and serious concerns over the competency of government officials, the Ministry of Finance has implemented a foreign aid evaluation checklist. According to the ministry, most ongoing aid projects required deadline extensions and additional aid because preparatory work only began after financial agreements were signed.

Ministry Appoints Three Experts to Board of Trade

The Ministry of Industry, Commerce, and Supplies has appointed three expert members to the Board of Trade. Private sector representatives Kush Kumar Joshi, Bidushi Rana, and Jyotsna Shrestha have been appointed as expert members. The appointments were made under Clause 13 of the Trade Policy 2024, according to the minister’s personal secretariat.

Number of Skilled Migrant Workers Declines by 11%

The number of skilled workers going abroad for foreign employment has decreased. Based on data from the past four years, the overall trend has increased, but skilled migration declined by 11% in fiscal year 2024/25 compared to 2023/24. According to the Department of Foreign Employment, 46% of migrant workers were skilled in 2022/23, rising to 72% in 2023/24.

Finance Ministry Forms Taskforce to Draft Budget Management Law

The Ministry of Finance has formed a taskforce to draft new legislation to improve budget management and implementation at the federal, provincial, and local levels. The goal is to improve budget allocation efficiency, enhance public finance effectiveness, and manage the federal reserve cash flow. The taskforce is coordinated by Mahesh Baral, head of the Financial Federalism Coordination Division.

CDSC to Categorize Dematerialized Securities Into Two Groups

CDS and Clearing Limited (CDSC) is preparing to classify listed dematerialized securities into two categories: founder and public. For this, CDSC has drafted the “Securities Dematerialization Operation Directive 2025” and submitted it to the Securities Board for approval.

First Meeting of National Tourism Council Prioritizes Wellness Tourism

The first meeting of the National Tourism Council decided to prepare a strategic concept paper to promote wellness tourism. Chaired by Minister for Culture, Tourism, and Civil Aviation, Badri Prasad Pandey, the meeting concluded that wellness tourism should be prioritized in policy development for the sector’s inclusive and long-term growth.

Two South Asian Investment and Leadership Events Begin in Nepal

Two major events on South Asian investment and youth leadership began in Nepal on Thursday. Organized by JCI Nepal, the “JCI South Asia Business and Investment Meet” and the “South Asian Academy for International Leadership” are being held at Hotel Aloft in Thamel from August 1 to 4.

Nine Petrol Stations Join Billion-Rupee Club in Fuel Sales

Last fiscal year, nine petrol stations across Nepal entered the billion-rupee club in terms of fuel sales. According to Nepal Oil Corporation spokesperson Manoj Thakur, there are a total of 1,736 fuel stations nationwide. Of these, 1,548 are regular stations, 51 are model stations, and 137 are remote-area vendors using drum sales.

Karnali Province Misses Targeted Internal Revenue

The Karnali Province Government failed to meet its internal revenue target. In fiscal year 2024/25, the estimated economic growth rate was 5.47%, and the internal revenue target was Rs 834.65 million. Based on this, a budget of Rs 31.41 billion was formulated for the year, with the remainder reliant on grants.

Lemon Farmer in Tanahun Faces Market Access Crisis

Manish Malla, a farmer from Devghat Rural Municipality-2 in Tanahun, is disheartened as he struggles to find a market for his lemons. He has cultivated lemons commercially on 20 ropanis of land. Despite being ready for harvest, the lemons remain in the field due to a lack of market access.

Nepalgunj Trade Deficit Exceeds Rs 74 Billion

Nepalgunj customs office reported a trade deficit exceeding Rs 74.32 billion in fiscal year 2024/25. Due to extremely low exports compared to imports through the Jamunaha border, the deficit reached Rs 74.32 billion. According to the customs office, 96% of the total trade through this point was in deficit.

Over Rs 1.80 Billion Unspent Budget Returned in Kanchanpur

Kanchanpur returned more than Rs 1.80 billion in unspent funds last year. In fiscal year 2024/25, Rs 1,801,734,080 was returned. According to the records of the Federal Treasury and Accounts Control Office and the Provincial Accounts Unit, 89.49% of the allocated budget was spent. Out of a total budget of Rs 17.14 billion, Rs 15.34 billion was used.

Nepal Reinsurance Company to Issue 100% Rights Shares

Nepal Reinsurance Company is set to issue 100% rights shares. The company’s board of directors, after obtaining approval from the Ministry of Finance, decided to issue rights shares to existing shareholders to increase capital. This proposal will be presented at the upcoming general assembly. Reinsurance companies are required to reach a minimum paid-up capital of NPR 20 billion by mid-February, 2026.

IPO Opens for Daramkhola Hydro Energy

The IPO of Daramkhola Hydro Energy has opened for the general public. From Thursday, the public can apply for the company’s IPO. The company is offering 38.33% of its issued capital of Rs 1.03 billion to the public. After allocation to migrant workers and project-affected locals, 2,423,185 shares are available for the general public.

Gold Price Drops by Rs 800 Per Tola

The price of gold decreased by Rs 800 per tola on Thursday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of gold has been fixed at Rs 193,600 per tola for the day, compared to Rs 194,400 the previous day. The drop in international markets led to the decline in the local market as well. Silver prices also dropped by Rs 40 per tola.