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 Jumps 53 Points on Wednesday

On Wednesday, the share market rose sharply. Compared to the previous day, the NEPSE index increased by 53.01 points, reaching 2,819 points. At the start of trading, the market initially fell to 2,768 points by 11:15 a.m., but gains continued steadily until the close of the session. Alongside the rise in the market, trading volume also increased. While the total turnover was Rs 418 million the previous day, it rose to Rs 768 million today. Out of the listed companies, 232 saw their share prices increase, while 19 experienced a decline. All sectoral indices registered growth. Development banks led the gains with a 3.40% increase.

NRB Withdraws Rs 45 Billion in Deposits

Nepal Rastra Bank (NRB) withdrew Rs 45 billion in deposits today due to excess liquidity in the financial system. The central bank used an auction mechanism to absorb liquidity. Total deposits have now exceeded Rs 7.2 trillion. Only banks and financial institutions categorized as “A,” “B,” and “C” with NRB approval were allowed to participate in this auction. NRB has been using deposit collection tools and standing deposit facilities to manage liquidity and interest rates.

Government Pays Rs 30.5 Billion Debt in First Month of FY 2025/26

In the first month of fiscal year 2025/26, the government paid Rs 30.5 billion in debt. According to the Public Debt Management Office, Rs 27.1 billion was for domestic debt and Rs 3.45 billion for foreign debt. The government plans to pay Rs 3.02 trillion in debt for the current fiscal year. Additionally, the government borrowed Rs 4.457 billion in the first month of current fiscal year, including Rs 4 billion domestic and Rs 457 million foreign debt.

Commercial Banks Reduce Deposits Amid Lower Interest Rates

Following a drop in deposit rates, commercial banks have reduced their deposits with the Nepal Rastra Bank (NRB). Despite the excess liquidity, NRB has already conducted four deposit collection operations between mid-July and late August. Banks are now keeping reduced amounts in 31-day, 25-day, and 21-day deposit instruments. At the start of the new fiscal year, NRB’s revised system lowered deposit rates by up to 0.25%.

CDSC Issues New Guidelines to Streamline Capital Market

CDS and Clearing Limited (CDSC) has introduced a new directive titled “Securities Dematerialization Operation Guidelines–2025” to regulate the capital market. The directive was unanimously passed at a CDSC board meeting on July 27 and sent to the Securities Board of Nepal for approval. However, the directive has not yet been approved even after a month. Sources indicate that the guideline, though unanimously approved by the CDSC board, is still under study at the Securities Board.

Government Revises Concessional Loan Procedures

The government has amended procedures for concessional loans, aimed at promoting modernization of traditional skills and professions, fostering entrepreneurship, and providing private housing support to natural disaster victims. According to the Ministry of Finance, the revised procedures have facilitated concessional loans offered by banks and financial institutions, and in some cases, the loan limits have been significantly increased. Subsidies will be available on interest, insurance fees, or protection charges for these loans.

Industry Department Invites Proposals for Wheat Import from India

The Industry Department has called for proposals from food and flour industries to import 40,000 metric tons of wheat from the Indian company National Cooperative Exports Limited (NCL) via the Government of India. A notice issued on Tuesday urges interested industries to submit proposals within 7 days of the publication date. The department stated that quotas will only be allocated to industries that can ensure wheat import within the specified timeframe.

Nepal’s Electricity Trade: Rs 49 Billion Export, Rs 65 Billion Import in Four Years

Over the last four fiscal years, Nepal has exported electricity worth Rs 49 billion and imported electricity worth Rs 65 billion. During this period, Nepal sold Rs 48.84 billion worth of electricity to India and Bangladesh and purchased Rs 64.74 billion worth. Nepal began exporting electricity to India in November 2021 with an initial 39 MW, and exports have increased every year since.

Mutual Funds Make Capital Market Attractive with Dividends

Mutual funds that encourage small investments in the capital market have announced dividends, making the sector more attractive. These funds are declaring dividends based on profits from last fiscal year’s operations. Recent data shows that over 30 funds have declared dividends to unit holders. Publicly released details indicate dividend rates ranging from 3% to over 21%, increasing investment opportunities in such schemes.

Petroleum Imports Rise by 3.6% in First Month of FY 2025/26

In the first month of the current fiscal year, petroleum imports through Kakarbhitta totaled Rs 1.5 billion. According to Ishwar Kumar Humagain, Information Officer at Mechi Customs, this represents a 3.6% increase (Rs 52.2 million) compared to the same period in fiscal year 2024/25. Revenue from petroleum also rose 11.8% (Rs 79.1 million) due to the slight increase in imports.

Nepal Begins Second-Year Sovereign Credit Rating Evaluation

Nepal has begun the second-year sovereign credit rating evaluation. Nepal first received a “BB-” rating from the international agency Fitch on November 22, 2024. The government had pre-selected Fitch for two years of evaluation and technical assistance in the third year. At the time, Nepal’s rating was better than most South Asian countries except India. Nepal’s rating is two notches below India, which currently holds a “BBB-” rating.

Government Prepares to Sell 30% Nepal Telecom Shares to Public

The government plans to sell 30% of Nepal Telecom’s shares to the public by March in the current fiscal year. The Government Investment Management Unit of the Ministry of Finance, in coordination with the Ministry of Communications and Information Technology, has prepared the schedule. The current public and employee shareholding in Telecom is 8.47%, while the company’s paid-up capital is Rs 18 billion. The budget specifies that the majority government share will remain, while 30% of shares will be divested to citizens.

Tourism Sector Growth Fails to Reflect in Listed Hotel Companies

Although tourist arrivals have increased significantly alongside overall economic growth, listed companies in the hotel and tourism sector have seen relatively little improvement in their market performance. The government had projected a 5% growth rate for the lodging and food (hotel) sector in fiscal year 2024/25. However, the trade of six companies listed on the secondary market grew by only 1.43%. Meanwhile, with the rise of new star-rated hotels, the hotel sector’s contribution to the economy has increased, but the revenue of older hotels has not grown significantly despite the expansion of the business.

Sugarcane Farmers Continue Protest Over Subsidy Payment

Sugarcane farmers demanding subsidy payments have continued their protest. The protest, which began at Maitighar, Kathmandu on Sunday, carried on through Wednesday. Their main demand is to receive the Rs 70 per quintal subsidy set by the government for fiscal year 2024/25. Last year, the government had fixed the sugarcane price at Rs 655 per quintal, of which Rs 585 was to be paid by the industry and Rs 70 as government subsidy. Rai added that the government has yet to provide the Rs 70 subsidy.

Telegram Registers After Previous Ban Over Online Fraud and Money Laundering

The messaging app Telegram, previously banned for online fraud and money laundering activities, has now applied for registration. The Ministry of Communications and Information Technology confirmed that Telegram submitted formal documents for listing and registration, which will be reviewed this week. The ban was imposed on July 18 by the Nepal Telecommunications Authority (NTA), which had instructed all telecom service providers to block access.

Bhote Koshi-I Hydropower Tunnel Breakthrough Achieved

The tunnel breakthrough has been completed for the Bhote Koshi-I Hydropower Project, which aims to produce 44 MW of electricity by Falgun. The tunnel is 2.638 km long, 5.2 m high, and 5.2 m wide. The breakthrough was jointly carried out by Bal Krishna Shrestha, Chief of the District Coordination Committee, and Pasang Norbu Sherpa, Chair of Bhote Koshi Rural Municipality. The tunnel is being built by Geology Infrastructure Company with investment from Promoter Electro Power Pvt. Ltd. and private investors. Tunnel finishing is expected in 6–8 months.

Sagarmatha Gas Industry Destroys 3,030 Unsafe Cylinders

On Sunday, Sagarmatha Gas Industry in Thapagaun, Banepa Municipality-4, Kavre, destroyed 3,030 unsafe and old cylinders. The cylinders were unsafe, leaking, damaged in foot rings, expired, or failed hydraulic testing. The destruction was supervised by Oil Corporation, Nepal Bureau of Standards and Metrology, local representatives, and consumer rights activists. The company noted that last year’s floods had damaged some cylinders.

22. 25% Progress on Kakadvitta–Laukahi Road Expansion 

The Kakadvitta–Laukahi road, connecting Nepal’s eastern border to the East-West Highway under the Asian Highway project, has reached 25% completion in 18 months. The four-lane road, funded with a USD 300 million loan from the Asian Development Bank and Nepal’s investment, is divided into two sections. Both sections converting the existing two-lane road to four lanes have achieved 25% progress. Although the total road length from Kakadvitta to Laukahi is planned to be 120 km, the 95 km section up to Labipur, Sunsari, was contracted on October 19, 2023.

Dang District Produces Major Quantity of Bananas

Bananas are produced mainly in the Deukhuri region of Dang. 730 hectares was used for commercial banana cultivation in fiscal year 2024/25, producing 9,973 metric tons. In fiscal year 2023/24, banana cultivation covered 670 hectares. Although local production meets 70% of market demand, additional bananas are required during festivals.

Bandipur Cable Car & Tourism Limited Launches IPO

From August 27, Bandipur Cable Car & Tourism Limited has opened an Initial Public Offering (IPO) for the general public. The company is offering 4,341,080 shares to the public. Applications can be made for a minimum of 10 shares and a maximum of 20,000 shares. The IPO will remain open until August 31, and if all shares are not sold during this period, sales will continue until September 10.

Green Ventures to Acquire 51% Founding Shares of Kaligandaki Garj Hydropower

Green Ventures Limited is set to acquire 51% founding shares of Kaligandaki Gorge Hydropower Pvt. Ltd. The share purchase agreement between the two companies was concluded on August 26. Kaligandaki Garj Hydropower is constructing a 180 MW semi-reservoir (peaking run-of-the-river) project in Mustang and Myagdi districts.

Gold Prices Near Record Again

On Wednesday, gold prices neared record levels. The Federation of Nepal Gold and Silver Dealers’ Association set the gold rate at Rs 199,000 per tola, an increase of Rs 300 from the previous day (Rs 198,700). The previous record of Rs 199,400 per tola was set on August 8, and gold prices have approached this record within three weeks. Meanwhile, silver prices fell Rs 15, from Rs 2,360 to Rs 2,345 per tola.