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.

Stock Market Falls 31 Points This Week Amid Low Volatility

This week, the stock market, which stood at 2,788 points, fell by 31 points to 2,757. Market volatility remained low throughout the week. For the last four days, fluctuations were limited to single digits. On Sunday, the market dropped by 27.14 points. It rose by 9.16 points on Monday and 6.51 on Tuesday, before falling 9.70 on Wednesday and 9.22 on Thursday. Due to low volatility, trading volume also declined this week.

Life Insurance Coverage Reaches 48 Percent

By the end of fiscal year 2024/25, life insurance coverage reached 48 percent. According to the Nepal Insurance Authority, 15,630,999 life insurance policies were issued by the end of last fiscal year. Previous year, the number was 13,881,492, with coverage at 43.27 percent.

NRB to Invest Rs 2776 Million in Bank Term Deposits

Nepal Rastra Bank will invest Rs 2,776.7 million from various funds into bank term deposits. Banks were invited to submit interest rate proposals by midnight of August 24. Of the total investment, Rs 2,221.4 million will go to commercial banks, Rs 416.5 million to national-level development banks, and Rs 138.8 million to national-level finance companies.

Sharp Decline in Housing and Land Transactions

There has been a sharp decline in housing and land transactions. Transactions at land revenue offices across the country in the month of Shrawan (Nepali calendar) reflect this trend. According to the Ministry of Land Management, Cooperatives, and Poverty Alleviation, 127,206 property-related services were processed in Shrawan of the previous year. In the current fiscal year, this number has dropped to 104,218—a decline of nearly 18.07 percent.

Banks and Financial Institutions See Profit Improvement But Problems Persist

Although banks and financial institutions showed profit improvement in the fiscal year 2024/25, underlying problems remain. Non-banking assets and loan write-offs increased during this period, indicating that issues were not resolved. The average non-performing loan ratio for banks and financial institutions reached 4.62 percent last year, up from 3.86 percent in the previous year.

Nepal’s Export Growth Continues

The growth rate of Nepal’s exports to international markets continues steadily. In the first month of the current fiscal year, Shrawan (Nepali calendar), exports totaled approximately Rs 24 billion. This represents a 96 percent increase compared to the same period last year, when exports were Rs 12.83 billion.

Investment Board Approves Rs 8.84 Billion for Lower Apsuwa Hydropower Project

The Investment Board has approved an investment of Rs 8.84 billion for the 54 MW Lower Apsuwa Hydropower Project. The decision was made during the 65th board meeting held on Friday. The meeting also decided to form a negotiation committee under the coordination of the Chief Executive Officer to discuss with developers’ issues such as the project development agreement draft and financial framework for the 800 MW West Seti Hydropower Project.

Energy Minister Plans to Involve 40,000 Households in Upper Arun Hydropower

Energy, Water Resources, and Irrigation Minister Deepak Khadka announced plans to directly involve 40,000 households from Sankhuwasabha in the Upper Arun Hydropower Project. Speaking at a press meet organized by the Nepal Press Union, Sankhuwasabha, he said the plan is to allocate shares worth Rs 500,000 per household in the 1,063 MW Upper Arun project. The target is to issue shares once 50 percent of the construction is completed.

India Approves Additional 80 MW Electricity Purchase from Nepal

India has sent approval to Nepal to sell an additional 80 MW of electricity. On Thursday, India’s Central Electricity Authority allowed the sale of 48.5 MW from Mewa Khola and 31.04 MW from Karuwa Seti Hydropower. The approval is valid until 31 October 2026 under a medium-term agreement with the state of Bihar.

National Pride Rani Jamara Kulariya Irrigation Project Still Incomplete After 15 Years

The Rani Jamara Kulariya Irrigation Project, launched as a national pride, has not been completed even after 15 years. Established in fiscal year 2010/11 and with construction starting a year later, the project has achieved only 74 percent physical progress so far. The Ministry of Energy, Water Resources, and Irrigation acknowledges that technical issues, disputes, and legal problems have prevented the project from moving forward.

NAC Implements Non-Destructive Testing Technology

Nepal Airlines Corporation has implemented Non-Destructive Testing (NDT) technology to detect small cracks and technical weaknesses in aircraft wings.The technology aims to prevent accidents and costly repairs by identifying visible issues in wings, nuts, bolts, springs, and other parts. NDT is widely recognized internationally for ensuring flight safety and maintenance standards.

Indian Trade Officials Inspect Industries in Nepal

India’s Ministry of Commerce inspected Nepali soybean and sunflower oil industries. The team inspected Pashupati Food Oil, Quality Oil, Maruti, and Baba Oil Industries along the Sunsari-Morang corridor, suspecting packaging under Indian brand names. The inspection was conducted in coordination with Nepal’s Ministry of Industry, Commerce, and Supplies under SAFTA for certificate of origin verification.

KOICA Marks 30 Years of Development Partnership in Nepal

The Korea International Cooperation Agency (KOICA) has completed 30 years of development partnership in Nepal. On this occasion, a special ceremony was held on Friday, during which agreements were signed for three significant projects. Under the first agreement, the establishment of the Gandaki Technical Institute will be implemented from 2025 to 2030, with nine million US dollars in support.

Nepal and Bhutan Tourism Associations Sign MoU

The Nepal Association of Tour and Travel Agents (NATTA) and the Association of Bhutanese Tour Operators (ABTO) signed a memorandum of understanding to promote tourism. The agreement was signed at Dungkar Dzong in Paro, Bhutan, by NATTA Chairman Kumar Mani Thapliya and ABTO Chairman Kinley Gyaltshen.

Koteshwor Underpass to Be Completed by 2033

The Koteshwor Underpass is expected to be completed in 2033. According to the government schedule, the structure is targeted to be completed by September 2033. The project will be constructed with nearly Rs 30 billion in loan support from the Japanese government. Consulting firms are scheduled to be contracted for the DPR and EIA by March 2026, with the processes expected to be finalized within one year.

NOC to Begin Petroleum Pipeline and Depot Construction

The Nepal Oil Corporation will begin constructing petroleum pipelines and large-capacity depots worth Rs 3.756 billion starting this fiscal year 2025/26. Executive Director Dr. Chandika Prasad Bhatta said the DPR has been prepared for projects in Jhapa, Chitwan, Kathmandu, and Bhairahawa, allowing construction to start immediately. In Mechinagar-13, Jhapa, a storage facility with a capacity of 18,900 kiloliters will be built.

Cardamom Exports from Mechi Customs Increase 99.5 Percent

Mechi Customs Office reports that cardamom exports increased by 99.50 percent in Shrawan (Nepali calendar) of the current fiscal year. Exports totaled Rs 32,17,61,000, amounting to 216.15 metric tons. In the previous fiscal year, exports were Rs 16,12,52,000.

Landslide-Partially Clears Kodari Road; Tatopani Trade Resumes

After three weeks of disruption due to landslides, Kodari Road has been partially reopened from Thursday, allowing Nepal–China trade at Tatopani to resume. Heavy rain on August 02, 2025 caused a landslide in the Bhotekoshi area, blocking the Araniko Highway and halting cargo movement. Local authorities, road division officials, and traders cleared the road temporarily despite continued rainfall. On Thursday, 30 container trucks reached the Tatopani customs yard, while six empty containers were sent to China and 20 more dispatched near Miteri Bridge. About 500 containers remain on the Chinese side.

Sudurpaschim Province Fails to Expand Tax Base Despite Policy Announcements

Since fiscal year2019/20, Sudurpaschim Province has adopted policies to broaden the revenue base and promote investment-friendly taxation for productive sectors. Although annual budgets promise improvements in tax policy and increased internal revenue, the province has failed to expand the actual tax base, with annual tax rates increasing but coverage remaining limited.

Nepal Imports 160 Electric Vehicles in First Month of FY 2025/26, India Tops Source

In the first month of FY 2025/26, Nepal imported 160 electric vehicles (EVs)—cars, jeeps, and vans—worth NPR 418.8 million, generating Rs 282.9 million in additional revenue, according to the Department of Customs. India supplied the largest share with 85 EVs, followed by China (60), Thailand (13), South Korea (1), and the USA (1). Importers cite flood-affected northern border points, including Rasuwa and Tatopani, for delays in Chinese shipments, making Indian imports more dominant.

Anand Raj Sharma Wagle Appointed as SEBON Board Member

Anand Raj Sharma Wagle, Vice President of the Institute of Chartered Accountants of Nepal (ICAN), has been nominated as a board member of the Securities Board of Nepal (SEBON). SEBON Chairman Santosh Narayan Shrestha welcomed and administered the oath of office to Wagle on Friday. During the ceremony, other board members and senior officials also extended their congratulations and best wishes. His appointment follows Section 3(2) (e) of the Securities Act, 2063, which requires a representative from ICAN to serve on the SEBON board.