KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

Gold Jumps Rs 11,600 in a Week, Nearing Record High

Gold prices in Nepal surged Rs 11,600 per tola (11.66 grams) over the past week, climbing from Rs 279,100 on June 26 to Rs 290,700 on July 3, as global uncertainty boosted demand for safe-haven assets. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold rebounded sharply after three consecutive days of declines, gaining Rs 6,200 on July 2 and Rs 7,200 on July 3 to approach its all-time high. Gold dealers attributed the rally to heightened geopolitical tensions, uncertainty in the global economy, central banks’ increasing gold purchases, and fluctuations in the US dollar and interest rate expectations. They said while jewelry demand has softened due to higher prices, investment demand for gold has continued to rise.

Govt. Directs Businesses to Pass Fuel Price Cuts to Consumers

The Department of Commerce, Supplies and Consumer Protection has urged businesses to reduce the prices of goods and services following the recent cut in fuel prices, saying the benefit should be passed directly to consumers. Acting on instructions from Minister for Industry, Commerce, and Supplies Gauri Kumari Yadav, the department called on traders, transport operators, and service providers to adjust prices after the Nepal Oil Corporation lowered fuel rates effective June 30. The department said the minister had directed authorities to prevent artificial price hikes and ensure essential goods and services remain affordable. It also urged all stakeholders to fulfill their responsibilities under the Consumer Protection Act, 2018, so that the impact of lower fuel prices is reflected in the market.

Government Allocates Rs 85 Billion to Power Sector in First 100 Days

The government has placed the energy sector at the center of its economic agenda during its first 100 days, introducing an Energy Consumption and Export Strategy to expand domestic electricity use and boost power exports. Key initiatives include prioritizing storage hydropower, accelerating transmission projects, allocating more than Rs 85 billion for electricity infrastructure, opening electricity trading to the private sector, and tightening hydropower license management. While these measures aim to strengthen governance and modernize the power sector, challenges remain in attracting large-scale investment, improving the business climate, reducing regulatory uncertainty, and increasing industrial electricity demand. Sustained reforms and investor confidence will be crucial to translating hydropower potential into long-term economic growth.

Nepal Sees Surge in Foreign Tourist Arrivals in 1st Half of 2026

Foreign tourist arrivals to Nepal have recorded a notable increase during the first six months of 2026 compared to the same period last year, according to the latest data released by the Nepal Tourism Board. A total of 620,453 international travelers visited Nepal between January and June this year, marking a steady rise from the 577,689 arrivals recorded during the corresponding six-month window in 2025. The tourism board attributed this positive growth primarily to the expansion of international flight networks and increased aviation connectivity. According to the monthly data provided by the board, visitor numbers remained consistently strong throughout the first half of the year, peaking during the spring trekking season. Nepal welcomed 92,573 tourists in January, followed by 105,441 in February, and reached a high of 120,516 in March. The upward trend continued into the second quarter with 107,934 arrivals in April, 102,626 in May, and 91,363 in June, capping off a successful half-year for the country’s tourism sector.

Retired Civil Service Employees will Receive their Payments by July 9

The Financial Comptroller General’s Office (FCGO) has directed all District Treasury Controller Offices (DTCO) to process and distribute the entitlements of the retired civil service employees by July 9. Subhash Chandra Aryal, the Accounts Officer at the FCGO, mentioned that a communication has been sent to the concerned offices requesting them to release payment for gratuity, accumulated leave, and medical treatment to the retired employees. Aryal also noted that, following a decision made on July 3, the authorization period for making and disbursing payments has been extended in line with sub-rule (2) of Rule 30 of the Financial Procedures and Financial Responsibility Regulations, 2020. Initially, the office had announced that payments would only be processed until July 4, but this deadline has now been pushed back a bit.

Rs 3.15 billion Allocated to Upgrade Beni-Jomsom-Korala Road

Infrastructure Development Minister Sunil Lamsal inspected the Beni-Jomsom-Korala Road Project, directing officials to expedite the tender process for five key bridges along the Korala section. During the visit, accompanied by Culture, Tourism, and Civil Aviation Minister Khadak Raj Paudel, officials reviewed construction progress and tourism prospects. The government has allocated Rs 3.15 billion to upgrade and blacktop the 50-kilometer Chhusang-Ghami section, while the environmental assessment for extending improvements to the Korala border has already been completed. Local residents also urged the government to address recurring landslides, flooding, and erosion along the Kaligandaki River, which continue to threaten the highway.

Govt. Restricts Nepal Oil Corporation Overtime to Technical Staff

The government has significantly curtailed overtime allowances for employees of the Nepal Oil Corporation, limiting the benefit to technical staff working in essential 24-hour operations under the newly approved Nepal Oil Corporation Limited Employee Administration (Eighteenth Amendment) Bylaws, 2026. The decision, made following directives from Minister for Industry, Commerce, and Supplies Gauri Kumari Yadav, means overtime payments will now be provided only to employees directly involved in aviation fuel dispensing, fuel depots, and pipeline operations. Administrative and other non-technical employees will no longer be eligible. The amended bylaws also require clear justification, prior approval, and verification of workload before overtime can be assigned, with approving authorities instructed to prioritize economy, efficiency, and effectiveness. The ministry said the changes are aimed at curbing misuse of overtime payments that had been costing the state millions of funds annually.

140 MW Tanahun Hydropower Project Reaches 75.5% Completion

The 140 MW Tanahun Hydropower Project, a national pride project being developed by Tanahun Hydropower Limited, has achieved 75.5 percent overall physical progress. Construction of the dam and headworks stands at 59 percent, while the powerhouse and equipment installation has reached 77 percent. The 33-kilometer Damauli-Bharatpur 220 kV transmission line is 78 percent complete. Built with concessional financing from the government, Nepal Electricity Authority, Asian Development Bank, Japan International Cooperation Agency, and European Investment Bank, the project is also implementing environmental and community development programs. Meanwhile, preparatory work for the proposed 126 MW Lower Seti Hydropower Project has advanced, with its environmental assessment submitted for approval.

Valley Traffic Police Collects Rs 2 Million in Last 24 Hours

A total of 2000 vehicle drivers have been penalized for breaching traffic rules in the last 24 hours. According to the traffic police, the revenue amount of Rs 2,004,014 collected after traffic action was deposited to the state treasury. According to the Kathmandu Valley Traffic Police Office, 61 people were penalized for consuming drugs, 129 for illegal ride-sharing, 61 for violating signal lights, and 113 for speeding. Similarly, 107 were penalized for not following lane discipline, 84 for honking in prohibited areas, 93 for parking vehicles on the roadside, 96 for driving on one-way streets, and 1,256 for other traffic violations, totaling 2,000 people penalized.

Rastriya Banijya Bank Launches Online Loan Application Service

Rastriya Banijya Bank has launched an online loan application service starting today. The bank introduced this service under its 100-point action plan for governance reform, aiming to provide more effective and efficient customer service. Pawan Regmi, Deputy Chief Executive Officer and Information Officer of Rastriya Banijya Bank, stated that the facility was brought into operation via digital means to allow customers to apply for loans from the comfort of their homes. This service aims to completely address common customer queries and uncertainties regarding the loan acquisition process, required documentation, and application tracking status. “Through this initiative, the loan process will be made fast, hassle-free, and transparent,” Regmi said. “To apply for a loan online, customers must visit the bank’s official website, click on the online loan application link, and navigate to the ‘RBB Xmart Lending Digital Loan Portal’.” According to the bank, users must first register on the portal using their email, a chosen username, and a password to access the service.