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Tuesday, August 26, 2025

Nepal News Evening Economic Brief – August 4, 2025

August 4, 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 Rebounds After Three-Day Slump, Gains 8.62 Points on Monday

After three consecutive days of decline, Nepal’s stock market showed signs of recovery on Monday. The NEPSE index rose by 8.62 points compared to the previous trading day, closing at 2,867 points. Earlier in the day, the market had climbed nearly 16 points before the weighted average price adjustment in the final 15 minutes of trading brought the gain to 8.62 points. Last Tuesday, the NEPSE index had touched a high of 3,002 points.

Government Initiates Immigration Reform Amidst Visit Visa Surge

A sharp increase in the number of Nepali citizens traveling abroad on visit visas has prompted the Government of Nepal to prepare comprehensive short- and long-term immigration sector reforms. Following parliamentary and public outcry over procedural irregularities, an investigation committee has been formed and is now actively engaged in its work.

Development Banks and Hydropower Lead Investment Returns

Over the past two years, investors have seen the highest returns from the development banking, hydropower, microfinance, and manufacturing sectors. Market analysts caution against over-concentrating capital in a single sector, advocating for diversification to mitigate risk as market sentiment shifts between different industry groups.

Over 839,000 Nepalese Obtain Work Permits for Foreign Employment in FY 2024/25

According to the latest data from the Department of Foreign Employment, a total of 839,266 Nepalese acquired labor permits for foreign employment in the fiscal year 2024/25. This figure includes skilled, semi-skilled, and unskilled workers. A significant portion of these workers are unskilled, with over 207,000 Nepalese traveling abroad without any formal training within a year. Among them, approximately 202,000 are men and over 24,000 are women.

2.4 Million Contributors Enrolled in Social Security Fund

Contribution-based Social Security Fund (SSF) has enrolled over 2.4 million contributors as of August 3, 2025, according to its latest data. Of the total 2,418,088 contributors, the majority—1.8 million—are Nepali migrant workers. The formal sector accounts for 679,007 contributors, while only 727 are from the informal sector and 444 from self-employment. Since its launch six years ago, the Fund has collected Rs 88.13 billion, disbursing Rs 16.03 billion in claims. Despite covering around 5% of Nepal’s population, participation from informal and self-employed workers remains minimal.

Ministry of Finance Discusses Budget Implementation with Ministry of Health

The Ministry of Finance has held discussions with the Ministry of Health and Population regarding the budget implementation for the current fiscal year 2025/26. During the meeting, the Ministry of Health proposed adding 2,100 personnel, including doctors and nurses, for federal hospitals to provide specialized services and expand healthcare coverage, according to the Secretariat of Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.

NOC Begins Construction of Amlekhgunj–Lothar Petroleum Pipeline

As part of the second phase of the petroleum pipeline project, Nepal Oil Corporation has officially started the construction of the Amlekhgunj–Chitwan (Lothar) pipeline. The physical infrastructure work began last Friday near the Rapti River bank in Lothar. Project Chief Pradip Yadav inaugurated the pipeline office at Lothar and formally launched the construction work.

CDSC Set to Mandate Separate ISINs For Shares

CDS and Clearing House (CDSC) is moving forward with a new mandate that will require companies to use separate International Securities Identification Numbers (ISINs) for their founder and public shares. As per the draft ‘Securities Dematerialization Operating Guidelines, 2025,’ this will apply to all companies that differentiate between these share types in their constitutional documents.

Hotel Occupancy Drops Sharply Across the Country

Hotel occupancy rates across Nepal have sharply declined, with many hotels reporting occupancy around just 25 percent due to fewer guests, according to hotel operators. Hoteliers attributed the drop in occupancy to a decrease in tourist arrivals. He explained that while the number of hotels is increasing, there has not been a significant rise in tourists, leading to lower occupancy rates. Shah also noted that the monsoon season combined with poor road conditions has affected the movement of both domestic and international tourists.

Kulman Ghising Blames NEA Leadership for Power Supply Problems

Former Executive Director of Nepal Electricity Authority (NEA), Kulman Ghising, has criticized the current leadership of the NEA, stating that the inability to manage effectively has resulted in nationwide electricity supply issues. Speaking at a program organized by the Nepali community in Austin during his ‘Ujyalo Nepal Abhiyan’ visit to the United States, Ghising remarked that despite having adequate power generation, the NEA leadership has failed to demonstrate necessary managerial competence.

Government Weighs Mandatory Quality Standards for Imports

Discussions are underway to mandate quality standards for all imported goods and to reduce land rental fees for properties managed by Industrial Area Management Limited. The talks were held during a high-level meeting between Deputy Prime Minister and Finance Minister Bishnu Poudel and Minister for Industry, Commerce, and Supplies Damodar Bhandari to discuss the implementation of this fiscal year’s budget.

Rastriya Beema Company Reports Rs. 1.37 billion Premium Revenue

Rastriya Beema Company Limited generated a total of Rs. 1.3792 billion in insurance premiums during the last fiscal year. The company’s CEO, Dr. Shivahari Shrestha, announced the figures at the company’s 12th-anniversary celebration, attributing the robust revenue to a combination of non-life insurance premiums, reinsurance commissions, and investment returns.

Nepal’s Finished Cement Exports Continue Upward Trend

Nepal’s exports of finished cement have grown for the third consecutive year, reaching Rs. 2.22 billion in the last fiscal year. Conversely, the export of semi-finished clinker to India saw a decline, valued at Rs. 697.3 million. In the fiscal year 2024/25, the export values of clinker and ready-mix cement were nearly equal. Clinker exports amounted to approximately Rs 1,880 million, while ready-mix cement exports totaled around Rs 1,970 million.

Nepal To Establish First International Tourism Office in Delhi

The Nepal Tourism Board (NTB) is set to open its first-ever international branch office to promote tourism, with its inaugural location planned for Delhi, India. The initiative is a key component of the NTB’s current fiscal year budget, with an initial field study already concluded to establish the new office.

Kailash Mansarovar Pilgrimage Fuels Regional Flight Surge

The resumption of pilgrimage tours to Kailash Mansarovar for Indian tourists’ post-COVID has led to a dramatic increase in air traffic between Nepalgunj and Simikot. The Nepalgunj airport office reports a jump from the typical 10 daily flights to over 50, reflecting the heightened tourist influx.

Provincial Fees on Indian Vehicles Defy Federal Mandate

Despite a federal government decision to eliminate route permit fees for vehicles entering Nepal temporarily from India, provincial authorities are reportedly continuing to collect these charges. This practice contravenes a provision in the current federal budget, with collections still taking place at unofficial offices near the Bhairahawa Customs Office.

Mid-Kali Gandaki Hydropower Construction Commences

The 66.3-megawatt Mid-Kali Gandaki Hydropower Project, the inaugural project on the Kali Gandaki River, has broken ground in Myagdi’s Annapurna Rural Municipality. Hydro Support Company and civil contractor Rasuwa-Multi JV have initiated the construction of a 4,319-meter tunnel, a pivotal step in the development.

Upper Chuwa Lurupya Hydropower Project Gets Capacity Upgrade

The 110.2-megawatt Upper Chuwa Lurupya Hydropower Project is slated for construction in the Simkot and Kharpunath Rural Municipalities of Humla. Developed jointly by Nepal Portfolio Energy Pvt. Ltd. and Malaysian company OHP Nepal Incorporated, the project’s capacity has been revised upward from its initial approval of 103 megawatts.

Singati Hydro Energy Posts Robust Net Profit

Singati Hydro Energy has reported a net profit of Rs. 149.9 million for the previous fiscal year’s fourth quarter, a significant turnaround from the Rs. 69.2 million losses recorded during the same period in the prior fiscal year. The company’s fourth-quarter financial report highlights a strong recovery and enhanced profitability.

Mabilung Energy to Launch IPO This Month

Mabilung Energy is set to issue its Initial Public Offering (IPO) to the general public beginning August 11. The company is offering 1,248,904 shares out of a total of 1,890,530 shares at a face value of Rs. 100 each, after allocating shares to migrant workers, affected locals, and mutual funds.

Gold Price Ticks Up in Nepali Market

The price of hallmark gold saw a marginal increase on Monday, rising by Rs. 100 to reach Rs. 196,600 per tola. This follows Sunday’s price of Rs. 196,500, according to data released by the Federation of Nepal Gold and Silver Dealers’ Association. The price of silver also saw an upward adjustment.