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 Index Drops by 41.35 Points, Closes at 2,834 on Tuesday

Nepal’s stock market witnessed a decline of 41.35 points on Tuesday, pushing the NEPSE Index down to 2,834. The market had surged to 2,905 points within the first 12 minutes of trading but gradually declined, remaining in the red until market close. The daily transaction amount also decreased compared to the previous session. While the turnover stood at Rs 10.82 billion the day before, it dropped to Rs 9.33 billion today. Out of the total traded companies, 46 recorded gains while the prices of 204 companies declined.

Loan-for-Loan Practice Continues Despite NRB’s Working Capital Loan Guidelines

Despite Nepal Rastra Bank (NRB) enforcing its Working Capital Loan Guidelines, the practice of using new loans to repay existing debts remains unchecked, as indicated by recent financial data. Statistics from the final week of the last fiscal year have further fueled suspicions that loans are being recycled to meet repayment obligations. In mid-July, banks and financial institutions disbursed an additional Rs 18.62 billion in loans. Typically, during the end of the fiscal year, banks focus on loan recoveries.

Finance Minister Paudel Vows Aggressive Tax Recovery Drive to Meet Revenue Target

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has announced that the government will launch a special campaign to recover outstanding taxes as part of an aggressive effort to meet the revenue collection target for the current fiscal year. Responding to lawmakers’ queries in the House of Representatives, Minister Poudel said that comprehensive policies and programs have been introduced to expedite revenue mobilization and strengthen measures against money laundering.

U.S. Dollar’s Exchange Rate Against Nepali Rupee Reaches Record High

The U.S. dollar has established a new record-high exchange rate against the Nepali rupee. The Nepal Rastra Bank’s official rates for Tuesday set the buying price at Rs 139.96 and the selling price at Rs 140.56 per U.S. dollar. The unprecedented valuation reflects a strengthening dollar and has implications for imports and foreign transactions.

Budhi Gandaki Hydropower Project Secures Major Financing

The 341-megawatt Budhi Gandaki Hydropower Project has reached financial closure, securing Rs 52.50 billion from a consortium of ten domestic banks and financial institutions. This financing accounts for 75% of the project’s total cost, with the remaining 25% to be covered by equity. This milestone marks a significant step forward for the nation’s largest private-sector hydropower initiative.

 Foreign Employment Ads Must Now Go Online

The Ministry of Labor, Employment, and Social Security has issued a mandate requiring all foreign employment advertisements to be published on its “Shram Sansar Employment Portal.” This measure, which complements the existing requirement to publish in national newspapers, aims to enhance transparency and provide a centralized platform for job seekers, thereby improving the regulatory oversight of foreign employment.

Minister Khadka Highlights Govt Support for Private Sector Investment in Sustainable Energy

Energy, Water Resources, and Irrigation Minister Dipak Khadka stated that the government is facilitating to make private sector investment and partnerships more effective for sustainable energy development. Speaking at an event organized by the Nepal Solar Power Producers Association in Kathmandu on Tuesday to celebrate its silver jubilee, Minister Khadka praised the association’s significant contribution in providing solar electricity to remote villages where the government has yet to reach with reliable power.

CDSC Proposes Controversial ISIN Rule

CDS and Clearing Limited (CDSC) has drafted a new directive mandating separate International Securities Identification Numbers (ISINs) for founder and public shares. This proposal, which is pending review by the Securities Board of Nepal (SEBON), deviates from international best practices where a single ISIN is standard. The measure aims to prevent the misuse of founder shares but has sparked debate among market experts.

Indian Labor Force Dominates Koshi’s Industrial Corridor

Industries in the Sunsari-Morang Industrial Corridor are increasingly reliant on foreign labor, even as many Nepali citizens seek employment abroad. Of the over 50,000 workers employed in the region’s 600+ industries, an estimated 20,000 are skilled and highly skilled Indian nationals. This highlights a persistent domestic skills gap and a reliance on cross-border labor to sustain industrial operations.

Demat Accounts Approach 7 Million Milestone

According to CDS and Clearing Limited, the number of demat accounts in Nepal is on the cusp of reaching 7 million, with 6,965,561 accounts now registered. However, this does not reflect active trading. Nepal Stock Exchange data shows that only 1,248,855 of the 4,189,677 trading accounts were active in the past year, indicating a significant number of dormant investors.

49 Foreign Reinsurance Broker Companies Operating Without Offices in Nepal Violating Rules

It has been found that 49 foreign reinsurance broker companies are conducting business in Nepal without establishing offices, which is against regulations. According to Nepal Insurance Authority rules, foreign reinsurance brokers registered with the authority must establish an office in Nepal within six months of registration. However, out of 54 foreign reinsurance brokers registered with the authority, only five have opened branch offices in Nepal and are operating accordingly.

Tourism in Karnali’s Tourist Areas Shows Significant Growth

Tourism to the tourist areas of Karnali Province has increased, according to a study conducted by Nepal Rastra Bank’s Karnali Regional Office in Surkhet. The report indicates that in the last fiscal year, the number of both domestic and foreign tourists visiting Karnali rose by 11.09 percent, totaling approximately 550,000 tourists in six months. In comparison, in the same six-month period of the previous fiscal year, fewer than 550,000 tourists had visited Karnali.

Govt Initiates Road Improvement to Strengthen Traffic Management in Kathmandu

The government has begun work to improve and widen roads in the Kathmandu Valley to enhance traffic management. As a starting point, the ‘Kathmandu Valley Urban Transport Management’ project has selected the New Baneshwor and Lainchaur traffic jams as model sites to implement measures for smoother traffic flow. This urban transport management project is being carried out through a partnership between the Government of Nepal and the Japan International Cooperation Agency (JICA) to ease traffic congestion in the valley.

Former Minister and Nepali Congress MP Tamang’s Construction Company Blacklisted

The construction company ‘Kanchharam Construction’, owned by Nepali Congress MP and former Minister of Water Resources Purna Bahadur Tamang ‘Kanchharam’, has been blacklisted by the Karnali Province Government’s Infrastructure Development Directorate. According to the directorate, the company failed to complete the road upgrading work within the Biirendranagar provincial capital area under Urban Road (Package) 10 on time, repeatedly delayed contract deadlines, and did not attend correspondence and meetings from the directorate, leading to this action.

Tribhuvan Airport Busts Cigarette Smuggling Attempt

Customs officials at Tribhuvan International Airport have thwarted a significant cigarette smuggling attempt. A substantial quantity of foreign and domestic cigarettes was confiscated as it was being prepared for loading onto a flight to Qatar. The seizure was made after the items had already cleared all security checkpoints, highlighting a breach in airport protocols that is now under investigation.

Staff Transfers Cause Delays at Company Registrar’s Office

The Office of the Company Registrar is grappling with operational delays following a mass transfer of staff due to allegations of service irregularities. The new personnel are not yet fully proficient with the office’s digital systems, leading to a backlog. As a result, the office has had to postpone the deadline for processing renewal exemption applications, causing inconvenience for businesses.

Ncell Becomes First Nepali Telecom Company to Launch VoLTE International Roaming Service

Ncell has become the first Nepali telecom company to introduce Voice over Long-Term Evolution (VoLTE) international roaming service for its customers traveling abroad, as well as for foreign visitors coming to Nepal. With this service, customers can now stay connected with crystal-clear voice calls and high-speed data even while traveling overseas.

Biratnagar Eyes Opportunities as Purnia Airport in India Nears Operation

An airport in Purnia, India, located about 90 kilometers from Biratnagar, the capital of Koshi Province, is preparing to begin operations. With Biratnagar directly connected to the Indian border, discussions have started on how Nepal could benefit from the operation of this nearby airport. Rajen Shrestha, Vice President of the Nepal Association of Tour and Travel Agents (NATTA), stated that the operation of the airport will create ample opportunities for Nepal to reap benefits.

Fertilizer Shortage Hits Banke Farmers as Distribution Delayed Over Bureaucratic Lapse

Farmers in Banke are facing a severe shortage of chemical fertilizers, even as around 6,000 sacks of urea meant for the district have been left idle for the past three to four days due to a missing quota allocation letter. The distribution has been delayed because the Ministry of Agriculture of Lumbini Province has been slow in sending the quota determination letter. Although fertilizers have been arriving continuously for the past few days, Salt Trading Corporation Limited’s provincial office has been unable to distribute them without the required documentation.

Habib Bank to Divest Stake in Himalayan Bank

Habib Bank of Pakistan has agreed to sell its shares in Himalayan Bank to National Life Insurance. The transaction, which is now subject to the final approval of the Nepal Rastra Bank, will see National Life acquire the shares at a price of Rs 118.80 per share. This deal follows the bank’s formal notification to existing shareholders regarding the sale of the shares.

Machhapuchchhre Bank Records Substantial Profit Growth

Machhapuchchhre Bank has announced a net profit of Rs 2.01 billion for the fiscal year 2024/25, a near doubling of the Rs 1.04 billion reported in the previous fiscal year 2023/24. The bank attributes this impressive 93% surge to a combination of strategic business expansion and demonstrating robust financial performance, among other factors.

At least 24 Casinos Receive License Renewals

The Department of Tourism has confirmed that twenty-four casinos and mini-casinos across the country have renewed their operating licenses for the fiscal year 2025/26. These establishments, located within various star-rated hotels, have met the government’s regulatory requirements, including the payment of service fees and annual royalties, ensuring their continued operation under the Casino Regulation, 2025.

Sagar Distillery Launches IPO for Migrant Workers

Sagar Distillery is poised to launch its initial public offering (IPO) for Nepali migrant workers on August 13. The company, with approval from the Nepal Securities Board, will allocate 145,200 shares, representing a portion of its 1.45 million shares, to this demographic. The application period is set to run until August 17, with a possible extension if necessary.

Bandipur Cable Car IPO Closes Today

The application window for the first phase of the Bandipur Cable Car and Tourism Limited IPO concludes today. The offering, which commenced on July 22, was exclusively for residents of the project-affected areas in Tanahun and Gorkha. This follows the earlier close of the IPO for Nepali migrant workers on July 25.

Gold Price Surges to a New Peak

The price of hallmark gold has escalated significantly, reaching Rs 198,500 per tola (11.66 grams) on Tuesday. This marks a substantial increase of Rs 1,900 from Monday’s price of Rs 196,600. The Federation of Nepal Gold and Silver Dealers’ Association confirmed this price hike, which was accompanied by a proportional rise in the value of silver to Rs 2,280 per tola.