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.

Share Market Drops 2.01% This Week, Falls by 60 Points

This week, the share market declined by 2.01 percent, losing 60 points. The market, which stood at 2,982 points last week, dropped to 2,922 points this week. Despite the recent fall, the market surpassed last year’s highest record this week. On Tuesday, the share market reached 3,002 points. Previously, on August 15 of last year, the market had touched 3,000 points before falling. On August 18, 2021, the market set its all-time high record at 3,198 points. During five trading days this week, the market fell on three days and rose on two days.

NRB Drafts Policy for Electronic Financial Product Testing

Nepal Rastra Bank has prepared a policy framework for institutions intending to launch new products in electronic financial services. The central bank has introduced a regulatory “sandbox” that allows for the testing and approval of new software and applications based on digital financial transactions. The central bank has made the draft of the regulatory sandbox public for discussion and has requested suggestions from stakeholders.

Nepal Faces Higher Loan Rates as World Bank, ADB, and JICA Adjust Terms

Nepal’s improving economic indicators, particularly the rise in per capita national income, have led to an increase in interest rates on foreign loans acquired from bilateral and multilateral development partners. The Ministry of Finance informed that institutions such as the World Bank, Asian Development Bank (ADB), and International Monetary Fund (IMF), as well as bilateral partners like China, Japan, and India, adjust loan interest rates based on a country’s income level and debt servicing capacity.

Soaring Gold Prices Lead to Sharp Drop in Imports

With the continuous rise in gold prices, imports have significantly declined. As domestic consumption has dropped due to soaring prices, gold imports have decreased, which has also led to a reduction in revenue collected from gold. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has increased by Rs 102,000 per tola over the past five years. In fiscal year 2018/19, the price per tola was Rs 92,400, which has now reached Rs 193,600.

Call for Simplified Insurance Terms in Nepali Language

Stakeholders have called for insurance policy documents to be written in simplified Nepali language to build public trust in insurance. They emphasized the need for clear explanations of all insurance terms at the time of purchase. They also stressed that insurance companies should pay a specified percentage of the damage after receiving reports from surveyors.

Govt to Remove Mandatory Life Insurance for Migrant Workers

The government is preparing to remove the provision of mandatory term life insurance for workers going abroad for employment. The Ministry of Labour, Employment and Social Security has proposed this change in its amendment to the Foreign Employment Act, 2007. The ministry plans to send this draft bill to the Ministry of Law for further processing. If passed, workers will no longer be required to renew life insurance every two years.

Finance Ministry Drafts Budget Discipline Bill Without Cabinet Approval

The Legislation Act, 2024 mandates that ministries must receive prior approval from the Council of Ministers before drafting bills. However, the Ministry of Finance has begun drafting a bill aimed at strengthening budget discipline without obtaining such approval. The ministry has already formed a task force and initiated formal work on the bill. Finance Secretary Ghanshyam Upadhyay said they are trying to move both the drafting and the cabinet approval process simultaneously.

Nepal Achieves Record Yarn Export Worth Rs 14.39 Billion

Nepal exported yarn worth Rs 14.39 billion in fiscal year 2024/25. This marks a record-high export of domestically produced, high value-added yarn. According to the Trade and Export Promotion Centre, yarn exports rose by 19.85% compared to the previous fiscal year, when Rs 12.01 billion worth of yarn was exported.

Govt Approves Nearly Rs 49 Billion in Loans Through Two Cabinet Meetings

The government has approved loans worth Rs 48.96 billion from two recent Cabinet meeting. From the meeting on July 23, Rs 13.3 billion ($100 million) was approved for the SASEC Electricity Transmission and Distribution Project via the OPEC Fund for International Development. The meeting on July 28 approved an additional Rs 35.66 billion in loans for two other projects.

Private Sector Hails New Tourism Policy as Industry-Friendly

Tourism associations have welcomed the government’s new tourism policy, introduced after 17 years, as being friendly to the private sector. The policy emphasizes a leading role for the private sector, encourages private investment, and promotes partnerships in tourism development.
It also includes provisions to promote high-quality tourism, develop multi-purpose infrastructure, collaborate on domestic tourism, and strengthen the institutional capacity of private service providers.

Insurance Board Takes Action Against 32 Insurance Companies

The Nepal Insurance Authority has penalized 32 insurance companies. The companies were punished for failing to submit financial reports on time, not fulfilling conditions during approval, and violating set standards. The penalized include all 7 micro-insurance companies, 12 general insurance companies, 12 life insurance companies, and 1 reinsurance company.

PM Oli Urges Public to Consume and Promote Millet

Prime Minister KP Sharma Oli has called on the public to consume millet dishes and increase production. The government has decided to observe National Millet Day starting this year from Shrawan 16 (Nepali Calendar). In a message issued on the occasion, PM Oli urged citizens to boost both consumption and production of millet.

Paddy Plantation in Madhesh Declines Sharply This Year

By July 31 last fiscal year 2024/25, 90% of paddy plantation had been completed in Madhesh Province. This year, however, only 51% of the paddy plantation had been completed by July 31.
Out of the total 373,645 hectares of paddy fields in Madhesh, plantation has been completed in only 193,116 hectares, according to data from the Ministry of Agriculture and Livestock Development. This year’s unfavorable weather conditions have hindered the planting process in the region.

Sudurpashchim Province Blacktops 106 km of Roads in One Year

The Ministry of Physical Infrastructure Development of Sudurpashchim Province has blacktopped 106 kilometers of roads in fiscal year 2024/25. This was reported to the Office of the Chief Minister and Council of Ministers. Additionally, the ministry reported graveling 103 kilometers and constructing 147 kilometers of earthen roads through its infrastructure development offices.

Large-Scale Coal Imports via Sirsiya Dry Port Amid Local Protests

Despite local opposition, large quantities of coal have been imported through the Sirsiya Dry Port. A “mountain” of coal imported from India is now piled in the western section of the port.
Residents of Khalwatola near the port have long demanded a halt to coal imports, citing pollution in their settlements. Coal imports through the dry port began last year.

Gajendra Narayan Singh Industrial Estate Revitalization in Motion

The Gajendra Narayan Singh Industrial Estate has fallen into ruin. Now, local political parties, the provincial government, and the police administration are united in efforts to revive it and turn Rupani into an industrial hub. The estate management company is actively inviting entrepreneurs from other regions to set up industries in Rupani. They are offering land on affordable rent, 24-hour electricity, water supply as needed, and full security guarantees.

Nepal Accepts ¥2.8 Billion Japanese Grant for BP Highway Repair

The government has decided to accept a Japanese grant of 2.8 billion yen (approx.) for the emergency reconstruction of the BP Highway, which was damaged by floods last year.
This decision was made in the Cabinet meeting held on June 23.

Rs 160 Million Additional Investment in Cottage and Small Industries in Rolpa

An additional Rs 160 million was invested in cottage and small industries in Rolpa during fiscal year 2024/25. According to the Cottage and Small Industries Office in Rolpa, Rs 102.27 million was invested in industrial ventures and Rs 57.65 million in commerce. Office head Dil Kumar Oli also reported Rs 3.22 million in revenue collection during the same period.

Ncell Launches ‘Biz Sadhai On’ Monsoon Business Offer

Ncell has introduced the “Biz Sadhai On” monsoon business offer for postpaid, SME, and corporate customers. Under this offer, customers can use services for a full year at a lower cost.
By subscribing to either the Biz Sadhai On 399 or 649 plan for 10 months, customers will get an additional 2 months of service free. The company said the offer follows the “Pay for 10 months, get 12 months” model.

Khanikhola Hydropower to Issue Rights Shares from August 19

Khanikhola Hydropower Company Limited is set to issue and sell rights shares starting from August 19. The company is planning to issue 100% rights shares based on its current paid-up capital. It aims to issue one new share for every one existing share currently held by shareholders.

Gold and Silver Prices Drop Again on Friday

Gold prices have declined by Rs 500 per tola on Friday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The federation stated that gold was traded at Rs 193,100 per tola on Friday. Within two days, gold prices have dropped by Rs 1,300. On Tuesday, gold was traded at Rs 194,400, which dropped to Rs 193,600 on Wednesday. Likewise, silver prices have fallen by Rs 35 per tola.