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.

Nepal’s Bank Base Rates Drop Significantly, Making Loans Cheaper in FY 2082/83:
Nepal’s commercial banks have significantly reduced their base interest rates over the past year. As of Saun, FY 2082/83, the average base rate across all 20 commercial banks stands at 6.11%, down from 8.13% a year earlier—a decline of 2.02 percentage points. Rastriya Banijya Bank posted the lowest rate at 4.89%, while NIC Asia has the highest at 7.17%. The drop is attributed to increased liquidity, lower deposit interest rates, and reduced loan demand. With base rates falling, all banks now offer loans below 10%, providing easier access to credit for both businesses and individuals amid Nepal’s sluggish economy.

Middle Bhotekoshi Hydropower Project Ready for Operation After Years of Setbacks:
The 102 MW Middle Bhotekoshi Hydropower Project in Sindhupalchok is set to begin commercial power generation, with electricity to be routed through the New Khimti substation to the national grid. Developed by Chilime Hydropower Company under NEA, the project overcame major delays caused by natural disasters, a border blockade, and COVID-19. Final inspections are underway, with NEA MD Hitendra Dev Shakya urging flood preparedness. Built at a revised cost of Rs 15.03 billion, the project expects to generate 542.2 million kWh annually, earning around Rs 2.8 billion. Over 1 million public investors have backed the venture through share offerings.

Nepal Insurance Authority Takes Regulatory Action Against 32 Insurance Companies:
The Nepal Insurance Authority has penalized 32 insurance companies for failing to submit timely financial reports, violating regulatory standards, and not fulfilling conditions set during report approvals. The affected include all seven micro-insurance firms, 12 non-life insurers, 12 life insurers, and one reinsurance company. Companies such as Nepal Insurance, IGI Prudential, Nepal Life, and Himalayan Reinsurance are among those sanctioned. The Authority, led by Sharad Ojha, issued warnings and ultimatums to improve compliance. This crackdown aims to enhance transparency, enforce timely reporting, and hold insurance firms accountable, signaling a stronger regulatory approach to clean up Nepal’s insurance sector.

Over 18,000 Businesses Blacklisted in FY 2081/82 Amid Rising Loan Defaults and Financial Offense:
The number of blacklisted Nepali businesses has surged sharply, with over 18,000 traders and entrepreneurs blacklisted in FY 2081/82 for failing to repay bank loans on time. According to the Credit Information Bureau (CIB), 53,571 individuals and firms were blacklisted, mostly from the business sector—1,200 more than the previous year. Of these, 18,801 faced blacklisting due to loan defaults, while 34,770 were listed over bounced cheques. Traders cite stagnant receivables and poor cash flow as key issues. Experts say this trend signals deeper economic distress. However, 18,000 individuals were also removed from the blacklist during the same period.

Nepal Waives Climbing Royalties for 97 Peaks in Karnali and Sudurpaschim to Boost Tourism:
The Government of Nepal has waived climbing royalties for 97 peaks in Karnali and Sudurpaschim provinces for fiscal years 2025/26 and 2026/27 to encourage mountaineering in under-visited regions. The decision, made by the Cabinet on July 28 under the Tourism Act and Mountaineering Regulations, will be formalized in the Nepal Gazette. Despite 471 peaks being open for climbing, few expeditions target this western region. Officials hope the waiver will attract climbers to peaks like Api and Saipal. The regulation allows exemptions for low-traffic peaks, off-season climbs, and certain climbers, aiming to diversify tourism and promote regional economic development.

Bajhang Upper Seti Hydropower Project Secures Financial Closure for Rs 41.6 Billion Investment:
The 216 MW Bajhang Upper Seti Hydropower Project has reached financial closure, with Kumari Bank leading a 15-member banking consortium. Located in Saipal Rural Municipality of Bajhang, the Rs 41.6 billion semi-reservoir project is backed by 70% debt and 30% equity. A Power Purchase Agreement with NEA was signed in 2023, and commercial generation is expected by mid-July 2031. The project, promoted by Samriddhi Energy Ltd., is set to generate 1,229.6 GWh annually. Power will be evacuated via a 220 kV line to the national grid. It promises to boost Sudurpashchim’s economy, infrastructure, and energy self-sufficiency.

Nepal Sees 8.7% Rise in Tourist Arrivals in July, Nears Pre-Pandemic Recovery:
Nepal welcomed 70,193 foreign tourists in July 2025, an 8.7% increase from the same month last year, according to the Nepal Tourism Board. With 647,882 arrivals in the first seven months, Nepal’s tourism sector has achieved a 99% recovery compared to pre-pandemic levels. India remained the top source market, followed by China, the U.S., Bangladesh, and the UK. South Asia led regional arrivals with 48.1%. Officials credit ongoing promotional efforts under the Visit Nepal Decade, growing private sector investment, and diverse tourism offerings for the surge. The figures signal strong momentum in Nepal’s tourism recovery after the COVID-19 disruption.

Nepal Expands Rail Transit Rights with India to Include All Goods via Biratnagar and Nautanawa:
Nepal has approved an amendment to the Nepal-India Transit Treaty allowing all types of goods—container and bulk cargo—to be imported by rail through Biratnagar Integrated Check Post (ICP) and Nautanawa, Sunauli, in addition to Birgunj ICP. The amendment, signed by Nepal and awaiting India’s final signature, expands transit options beyond the previous four goods allowed by rail. This will ease congestion at Birgunj and reduce trade costs, benefiting factories around Biratnagar and western Nepal. Trade experts hail the move as a major logistical improvement but urge further reforms and greater private sector awareness to maximise benefits.

Insurance Claims from Rasuwa Floods Reach Rs 848 Million, Himalayan Everest Receives Largest Claim:
The Nepal Insurance Authority has released updated data on insurance claims related to the devastating flood and landslide in Rasuwa on July 7 (Asar 23). As of July 30 (Shrawan 15), eleven non-life insurance companies have reported a total of 73 claims amounting to Rs 848.43 million. Himalayan Everest Insurance received the highest claim—Rs 550 million from just two cases. Shikhar Insurance received 15 claims worth Rs 169.6 million. The highest portion of claims, Rs 580.1 million, falls under property insurance. Other claims include marine (Rs 162.5 million), engineering/contractor (Rs 54.5 million), public motor (Rs 29.8 million), and private motor (Rs 21.4 million).

Petroleum Storage Terminal to Be Built at Lothar Khola and Rapti Confluence in Chitwan:
Nepal Oil Corporation, in partnership with Indian Oil Corporation, is set to construct a petroleum storage terminal and expand the Amlekhgunj-Lothar pipeline near Lothar Khola and Rapti River in Chitwan. The project involves a 62-kilometer pipeline and a storage facility capable of holding 3,200 kiloliters of fuel, with a total investment of Rs 15 billion. Nepal Oil has already acquired 23 bigha 12 kattha of land in Rapti Municipality-1. The project, expected to finish within three years, will strengthen embankments along the rivers, reduce flood risks, and create employment opportunities, boosting local businesses and agriculture in eastern Chitwan.

Revival Efforts Underway to Restore Gajendra Narayan Singh Industrial Area in Saptari:
The Gajendra Narayan Singh Industrial Area in Rupani, Saptari, once a thriving hub attracting industries and providing jobs, fell into decline after the Madhesh Movement and political instability. Established in 1987 with Indian support, the 294-ropani zone attracted investors from eastern Nepal and neighboring districts. Currently in ruins, local authorities, provincial government, and police are united in efforts to revive the industrial area. The management company is inviting investors, offering affordable land leases, 24-hour electricity, water, and security. With 12 small industries present, plans for new investments and infrastructure upgrades aim to restore the industrial zone’s vitality and regional economic growth.

NEPSE Falls by 60 Points, But Trade Tower Soars Over 61% in Weekly Gains:
This week, the NEPSE index dropped by 60.01 points, closing at 2922.63 compared to last week’s 2982.64. Despite the overall decline, Trade Tower’s stock surged by 61.02%, rising from Rs 648.20 to Rs 1043.70 per share—an increase of Rs 395.50. Sanvi Energy followed with a 54.27% gain, closing at Rs 891.50 from last week’s Rs 577.90. Samata Gharelu Laghubitta rose 14.69% to Rs 1191.45, while Saptakoshi Development Bank posted an 11.02% increase, ending at Rs 1002.99. These companies were among the week’s top performers despite the broader market downturn.

Tourism Slows to a Crawl in Rain-Soaked Pokhara as Off-Season, Poor Roads Hit Visitor Numbers:
Pokhara’s tourism sector is facing a sharp downturn due to monsoon rains, poor road conditions, and the seasonal off-peak period. Hotel occupancy has dropped to around 15%, with mostly Indian and Nepali guests, according to Laxman Subedi of the Western Regional Hotel Association. Over 1,200 hotels remain underutilized, as travel difficulties and grounded flights deter tourists. Despite the city’s new international airport, no foreign flights operate yet. Paragliding and other attractions have also been suspended due to weather. Entrepreneurs remain hopeful for a recovery by mid-October, urging better coordination to attract Indian tourists seeking cooler destinations during the summer heat.

Nepal Celebrates First National Millet Day to Promote Food Security and Healthy Living:
Nepal marked its first-ever National Millet Day 2025 on Friday, promoting millet as a key to food security and a healthy lifestyle. Celebrated under the slogan “Diet of Millet Dishes: Base of Food Security and Healthy Life,” the main event in Bhaktapur saw participation from stakeholders including farmers and officials. Agriculture Minister Ramnath Adhikari urged citizens to include millet in daily meals, citing its nutritional and climate-resilient benefits. Despite favorable growing conditions, Nepal imported Rs. 766 million worth of millet products last year. Officials emphasized the need for improved seed quality and production to meet rising demand and reduce imports.

Border Farmers Face Crisis as Substandard and Smuggled Fertilisers Flood Lumbini Markets:
Farmers in Lumbini’s border districts are alarmed by a surge of low-quality and smuggled fertilisers from India amid shortages of state-subsidised products. Traders exploit Nepal’s open border to import untested urea, DAP, and other fertilisers repackaged as domestic brands, risking soil damage and reduced crop yields. Despite government controls and police assurances of tightened border checks, illegal imports continue through customs and informal routes. Agricultural experts urge farmers to use only officially approved fertilisers, warning of nutritional imbalances from smuggled products. Nepal’s fertiliser demand exceeds official supply, with informal imports estimated to account for up to 70 percent of usage nationwide.

Declining Interest in Millet Farming Among Bhojpur Farmers:
Millet farming, once a major crop in Bhojpur, is losing appeal among local farmers due to low income and farming challenges. Although millet grows widely in the area, most farmers cultivate it only for household consumption rather than commercial purposes. Locals report declining demand, with millet mainly used for traditional drinks like liquor rather than daily meals. Seasonal festivals see some demand, but otherwise, millet farming is diminishing as farmers switch to alternative crops. The Agriculture Knowledge Center in Bhojpur notes about 6,000 hectares are suitable for millet, but cultivation is steadily decreasing, threatening this traditional crop’s future in the region.

Farmers Struggle to Find Markets for Akabare Chilli in Myagdi:
Farmers in Myagdi’s Dhaulagiri Rural Municipality-7, including Omraj Magar and Nirmal Pun, are facing challenges selling their Akabare chilli crops due to limited local market demand. Despite successful cultivation using organic methods and mulching techniques, farmers struggle to compete with imported chilli from the Terai and eastern hill districts. Akabare chilli is cultivated commercially in areas like Banau, Shivang, and Bhakimli, but local consumption remains low. The local market price ranges from Rs 250 to 300 per kilogram. Efforts by local officials aim to connect farmers with larger markets in Pokhara and Kathmandu to improve sales and support the growing industry.

Tree-Cutting Delays Stall East-West Highway Upgrade Despite Approval:
Though approval was granted on July 7 to cut over 31,000 trees for the Kamala-Pathlaiya section upgrade of the East-West Highway, actual work remains stalled. Project chief Chhabilal Paudel says construction progress has slowed due to tree and utility pole obstructions, with only 10% completed so far instead of the targeted 15%. Despite contractors starting work at three points under World Bank funding, tree-cutting delays have forced them to focus on bridge building instead. Forest officials cite pending processes like marking and stamping. With the project deadline set for 2027, critical road-widening work remains uncertain due to bureaucratic hurdles.

Gorkha District Earns Rs 2 Million from Medicinal Herb Collection and Export in FY 2024/25:
Gorkha District generated Rs 2.01 million in revenue from the collection and export of 46,974 kg of medicinal herbs in fiscal year 2024/25, according to the Division Forest Office and Manaslu Conservation Area Project. The Manaslu region alone contributed 11,392 kg, earning Rs 1.27 million—Rs 1.08 million of which came from just 34.19 kg of Yarsagumba. Other herbs collected include Bukiphool, Padamchal, Rato Chyau, Timur, and Chiraito. From areas outside Manaslu, 35,582 kg of herbs brought in Rs 745,985, with Jatamasi being the top contributor at Rs 356,250. Officials highlight the sector’s growing economic significance.

Ex-Nepal Airlines Official Builds Model Dairy Farm Producing 3,000 Litres of Milk Daily:
Giriraj Basnet, a retired Nepal Airlines administrator, has transformed four bighas of land in Morang’s Katahari Rural Municipality into a thriving modern dairy farm. After two years of research, he launched Greenyard Agro Farm with an investment of Rs. 400 million. Now housing 400 cows and 100 calves, the farm produces 3,000 litres of milk daily, supplied to local dairies. Basnet plans to establish his own dairy industry to process products like ghee and paneer. The farm employs 24 people and supports local farmers by purchasing corn for silage. His sons, trained in CA and MBA, now help manage the enterprise.

Rangrung Waterfall Emerges as Major Tourist Attraction in Gorkha’s Barpak Region:
Rangrung Waterfall, nestled in Sulikot Rural Municipality-3 of Barpak, Gorkha, is drawing increasing numbers of domestic and international tourists. Cascading nearly 500 metres through lush forest, its natural beauty and thundering sound have turned it into a social media sensation. Tourists often visit en route to the historic village of Barpak. Local authorities, led by Chairperson Bishnu Bhatta, have included the site in tourism development plans and are seeking federal and provincial support for further infrastructure. Hundreds now visit weekly, especially on Fridays and Saturdays, to photograph, bathe, and experience the waterfall’s serene, scenic environment. A DPR is currently underway.