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:

Ministry Releases New Salary Scale for Civil Service Employees

The Ministry of Finance published the updated salary scale for civil service employees, effective from July 17, setting the starting monthly salary for the chief secretary at Rs 84,932 and a maximum of Rs 90,594 across two grading increments of Rs 2,831 each. Under the new schedule, the initial and maximum monthly earnings for gazetted special-class officers are fixed at Rs 79,290 and Rs 84,576, while first-class and second-class gazetted roles begin at Rs 62,466 and Rs 53,611, respectively, alongside specialized wage tiers for heavy and light vehicle drivers.

NEPSE Falls 4.64 Points with Rs 4.427 Billion Turnover

The Nepal Stock Exchange (NEPSE) declined 4.64 points, or 0.17 percent, on Tuesday to close at 2,696.67, while daily turnover fell to Rs 4.427 billion from Rs 6.08 billion the previous day. A total of 10,421,863 shares of 342 companies were traded through 55,580 transactions. Share prices of 96 companies advanced, 166 declined, and 13 remained unchanged. Four sectoral indices gained while nine declined. Central Finance Company recorded the highest turnover at Rs 271.4 million. Everest Color was the day’s top gainer with a 15 percent rise, while Kutheli Bukhari Small Hydropower posted the steepest loss, falling 6.07 percent.

Finance Minister Meets Industrialists, Discuss Budget and Challenges

Finance Minister Swarnim Wagle met with leading industrialists from Nepal’s manufacturing sector at the Ministry of Finance at 3:00 PM on Tuesday to discuss budget implementation and pressing industrial issues. Around three dozen prominent industrialists attended the meeting to focus on executing the annual budget, improving the domestic industrial environment, promoting capital investment, and providing direct feedback. High-level officials participating alongside Minister Wagle included Finance Secretary Ghanashyam Upadhyay and Industry Secretary Narayan Prasad Dawadi.

Industry Minister Inspects Gas Bottling Plants After Complaints

Minister for Industry, Commerce and Supplies Gauri Kumari Yadav conducted an unannounced field inspection of Surya Gas Industry and Sagarmatha Gas Industry located in Nala, Kavrepalanchowk, on Tuesday, following widespread public complaints regarding cooking gas shortages. Industry operators briefed the minister that current distribution volumes remain stable relative to previous periods but are strained by consumer stockpiling, prompting ministerial directives to prioritize domestic household supplies over commercial allocations.

Japan and Nepal Sign ¥410 Million Grant Agreement for Official Scholarships

The governments of Japan and Nepal signed a JPY 410 million (approximately Rs 390 million) grant agreement on Tuesday to fund scholarships for young government officials under the Human Resource Development Scholarship program. Signed by Japanese Ambassador Maeda Toru and Finance Secretary Ghanshyam Upadhyaya in the presence of Finance Minister Swarnim Wagle and Japan International Cooperation Agency President Akihiko Tanaka, the funding supports master’s and doctoral degrees in Japan. The program aims to enhance public administration capacity and strengthen bilateral ties.

Govt. Proposal to Centralize CSR Funds Draws Private Sector Backlash

A government proposal to require companies to deposit Corporate Social Responsibility (CSR) funds into a state-run fund has sparked strong opposition from the private sector and experts, who argue it undermines the core purpose of CSR. The draft amendment to company law would replace direct corporate spending on social initiatives with a government-managed CSR Fund. Business leaders, former officials, and legal experts warned the move would effectively create an indirect tax, weaken private sector autonomy, and reduce companies’ direct engagement with communities, urging the government to reconsider the provision.

IRD Clarifies VAT Applies Only to Electricity Consumed After July 17

The Inland Revenue Department has clarified that Value Added Tax on electricity services applies only to electricity consumed from July 17, 2026, onwards. The clarification follows complaints after the Nepal Electricity Authority mistakenly included VAT on July bills covering June consumption. The department said electricity consumed up to July 16 remains tax exempt under existing law, while VAT will apply only to consumption after the new provision took effect, including minimum charges and demand fees.

NTB Upgrades Tender Portal, Requires Companies to Re-register

The Nepal Tourism Board (NTB) has upgraded its online tender portal and requested all companies interested in participating in its international events to register through the new system. The board said the requirement applies to both new applicants and companies that were previously registered. Eligible companies can register through the upgraded portal at tenders.ntb.gov.np. According to the NTB, the Company Portal is designed for authorized companies registered in the country to participate in official tourism events, promotional programs, and other strategic initiatives organized by the board.

Paddy Plantation Reaches 85.72% Nationwide

The Department of Agriculture reported that paddy plantation has been completed across 85.72 percent of total arable land nationwide, covering 1,174,392.48 hectares out of 1,370,062 hectares as of July 27. Provincial breakdowns indicate the highest progress in Sudurpashchim Province at 97.93 percent, followed by Lumbini Province and Karnali Province at 88 percent, Bagmati Province at 87 percent, Koshi Province at 86 percent, Gandaki Province at 80 percent, and Madhesh Province recording the lowest coverage at 77 percent.

Nepali Embassy in Malaysia Tightens Demand Letter Verification for Workers

The Embassy of Nepal in Malaysia enforced stricter verification requirements for new worker demand letters to ensure proper compensation, lodging, and working conditions, requiring employers to submit verified pay slips, bank salary payment records, weekly holiday provisions, accommodation proofs, and evidence of service fee payments to recruitment agencies in Nepal. Led by Counselor Krishna Prasad Bhusal, the mission targets widespread exploitation affecting an estimated 75,000 Nepali security guards and cleaning personnel who frequently face delayed wages, excessive 12-hour daily shifts without adequate overtime, and the unlawful retention of passports by employers despite official minimum wage thresholds of MYR 1,700 established in February 2025.

Rasuwagadhi Checkpoint Remains 65% Complete After a Decade

The Rasuwagadhi Integrated Customs Checkpoint at the northern border remains only 65 percent complete, nearly 10 years after construction began despite an original three-year deadline. Officials attribute the delay to contractor negligence, labor shortages, difficult terrain, and natural disasters. Authorities have warned the contractor that the agreement will be terminated if the latest deadline is missed. Once completed, the facility will house customs, immigration, quarantine, security agencies, and banking services under one roof to streamline cross-border trade.

28.3 MW Madhya Chameliya Hydropower Project Moves Ahead

Construction of the 28.3 MW Madhya Chameliya Hydropower Project in Darchula is set to move forward after the government initiated a supplementary environmental impact assessment following design revisions. The run-of-river project, promoted by Darchula Power Company, secured its generation license in March 2025 and achieved financial closure in June 2025. Estimated to cost Rs 6.23 billion, the project is expected to be completed within three years and will supply electricity through the NEA’s Balach Substation.

Department Warns Against Sale and Distribution of Banned Goods

The Department of Commerce, Supplies and Consumer Protection has warned businesses against selling or distributing prohibited goods, reminding traders that violations of the Import and Export (Control) Act and Consumer Protection Act will face legal action. The department urged importers and retailers to comply with existing regulations and said it has intensified market monitoring. Nine businesses in Kathmandu were inspected on Monday, with corrective measures recommended where necessary.

Department Inspects 9 Commercial Firms in Kathmandu

The Department of Commerce, Supplies and Consumer Protection inspected nine commercial firms in Kathmandu on Monday, in the presence of consumer rights activists and local stakeholders, issuing corrective directives to the businesses as part of intensified market monitoring to prevent the unauthorized sale of government-restricted merchandise.

Karnali Exempts Agricultural Income up to Rs 2.5 Million from Taxation

The Karnali Province Government introduced major tax exemptions under the Karnali Province Economic Act, 2026, eliminating income tax for farmers earning up to Rs 2.5 million annually while levying minimal rates of 1 percent on incomes between Rs 2.5 million and Rs 5 million and 1.75 percent above Rs 1 billion. The new legislative framework also establishes an amnesty program waiving penalties on long-standing vehicle taxes through June 14, 2027, upon payment of dues for the preceding three years, alongside steep reductions in property transfer taxes on ancestral inheritance partitioning from 1.5 percent down to 0.2 percent for estates up to Rs 3 million.

Jumla Budget Freezes Exceed Rs 1 Billion in Last FY

The Office of the Comptroller and Auditor General in Jumla reported that unspent federal budget allocations totaling Rs 1.437 billion were frozen and returned to the federal treasury for the fiscal year 2025/26. Out of Rs 7.648 billion allocated across roughly four dozen thematic offices, overall expenditures reached Rs 6.211 billion (81.21 percent), while capital spending remained weak at Rs 1.077 billion (51.72 percent of the allocated Rs 2.082 billion), leaving over Rs 1 billion in capital funds unutilized due to disruptions from public protests, seasonal holidays, winter breaks, and parliamentary elections.

Norvic Hospital Clocking Rs 2 Billion Revenue in 9 Months

Norvic International Hospital recorded Rs 2.04 billion in revenue over the first nine months of the last fiscal year, driven by steady growth in outpatient (127,473) and inpatient (6,594) visits. Strong operational performance pushed operating margins to 27 percent and internal cash reserves to Rs 471 million. With an equity infusion of Rs 194.4 million and early debt repayment of Rs 131 million, the hospital improved its interest coverage to 10.90x and gearing ratio to 1.17x. Meanwhile, Norvic is wrapping up a Rs 3.32 billion expansion to increase capacity from 116 to 275 beds, with commercial operations slated for 2027.

Applications Called for Vacant NEPSE Chief

The Nepal Stock Exchange (NEPSE) has called for applications through open competition to fill the vacant position of Chief Executive Officer (CEO). On Monday, the Ministry of Finance formed a three-member selection committee led by Joint Secretary Mahesh Acharya to appoint the CEO. The committee published a public notice on Tuesday soliciting applications for the role. The committee released the notice in today’s Gorkhapatra national daily, setting a 15-day deadline for applicants to submit their candidate profiles. The position became vacant after former NEPSE CEO Chudamani Chapagain resigned from his post on July 6 prior to the completion of his tenure. Chapagain, who was appointed as CEO on April 1, 2025, stepped down before his official term ended.

SEBON to Introduce ESG Framework and Green Bonds for Capital Market

The Securities Board of Nepal (SEBON) announced plans to formulate an Environmental, Social, and Governance (ESG) framework and directive for listed companies under its policy and program for the fiscal year 2026/27. Designed to promote sustainable development, attract international institutional investors, and steer the capital market toward green finance, the framework incorporates environmental reporting, social impact metrics, governance indicators, and climate risk disclosures alongside the issuance of green bonds and the establishment of sustainable finance funds.

Gold Traded at Rs 284,200; Silver at Rs 4,310 Today

Gold prices in the domestic market dropped by Rs 4,300 per tola (11.66 grams) on Tuesday, driven by shifting market trends, according to the Federation of Nepal Gold and Silver Dealers’ Association. Gold is currently trading at Rs 284,200 per tola, down from Monday’s rate of Rs 288,500. In tandem with gold, silver prices also experienced a decline today, falling by Rs 135 per tola. The metal is now selling at Rs 4,310 per tola, compared to Rs 4,445 recorded in the previous trading session.