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.

NEPSE Falls by 18 Points on Sunday

The Nepal Stock Exchange (NEPSE) index fell by 18 points (0.65%) on Sunday, closing at 2,739.95 points. Despite the decline, trading volume remained high, with 14,090,708 shares worth Rs 6.54 billion changing hands. By market close, share prices of 41 companies had increased, while 208 companies saw their prices decline. No company’s share price remained unchanged. Throughout the day, 323 companies were traded, with a total of 58,105 individual transactions recorded.

Remittance Inflow Reaches Rs 1.72 Trillion in FY 2024/25

Nepal received remittances worth Rs 1.72 trillion in fiscal year (FY) 2024/25, according to Nepal Rastra Bank (NRB). This marks a 19.2% increase compared to FY 2023/24. The growth in remittance inflows contributed to a sharp rise in Nepal’s foreign currency reserves. As of the end of FY 2024/25, reserves rose by 31.2% compared to the previous year, reaching Rs 2.67 trillion, NRB data shows. Of the total reserves, Nepal Rastra Bank held Rs 2.41 trillion by the end of FY 2024/25, up 30.6% from Rs 1.84 trillion in FY 2023/24.

Nepal Records Trade Deficit with 86 Countries in First Month of FY 2025/26

In the first month of the current fiscal year 2025/26, Nepal faced a trade deficit with 86 countries. Data released by the Department of Customs shows that out of a total of 111 countries with which Nepal conducted trade, only 25 countries showed a trade surplus. In the same period last year, Nepal traded with 103 countries, of which 90 countries were in trade deficit. Only 13 countries had trade surplus.

NRB Withdraws Rs 50 Billion Amid Excess Liquidity

Due to excessive liquidity in the financial system, Nepal Rastra Bank (NRB) has withdrawn Rs 50 billion today. The withdrawal was carried out through an auction using the deposit collection instrument. Currently, total deposits have exceeded Rs 7.2 trillion. Only banks and financial institutions classified as ‘A’, ‘B’, and ‘C’ and authorized by the central bank will be allowed to participate in the auction.

Foreign Investment Companies in Nepal Show Profit Growth

Foreign-invested companies operating in Nepal are showing signs of improved earnings. According to the latest data from the Department of Industry, more than Rs 2.9 billion in dividends was remitted in the first month alone in the current fiscal year 2025/26. In the same period last year, only Rs 64 million was remitted as dividends.

Government to Raise Rs 5 Billion via Treasury Bills

The government will raise Rs 5 billion in internal loans through treasury bills on Monday. The Public Debt Management Office issued a notice stating the amount will be raised through 28-day treasury bills. The amount will be used to renew matured treasury bills. Bidding for the treasury bills will be allowed until 3 PM on Monday, August 25, after which the treasury bills will be issued. Interest rates will be determined through the auction.

Reduced Bank Interest Rates Benefit Microfinance Sector

Reduced bank interest rates have positively impacted microfinance financial statements. Most microfinance institutions showed profit growth last fiscal year. Among 52 microfinance institutions, Super Microfinance was declared problematic by Nepal Rastra Bank. The profits of 51 microfinance institutions increased by 68.23% to Rs 842.41 million in fiscal year 2024/25. In the previous fiscal year, their profits totaled Rs 507.6 million.

Government Plans to Purchase Seven Twin Otter Planes for Seven Provinces

The government is preparing to purchase seven Twin Otter aircraft to operate in seven provinces. Minister for Culture, Tourism, and Civil Aviation Badri Pandey said the lack of Twin Otter planes in hilly and mountainous districts has disrupted regular air services. To solve this, the ministry proposed buying seven Twin Otter planes, one for each province, through a transparent model in collaboration with the private sector.

Ministry Revives Plans to Establish Fertilizer Plant 

To address the perennial shortage of chemical fertilizers, the Ministry of Industry, Commerce, and Supplies has advanced plans to establish a fertilizer plant. The Nepal Oil Corporation, under the ministry, has been tasked with the process. As part of this effort, a team led by Executive Director Dr. Chandika Prasad Bhatta is currently visiting India to discuss setting up a chemical fertilizer plant with Indian Oil Corporation (IOC).

Luxury Tax on Gold Trade Removed

The tiered luxury tax on gold trade has been removed. The government had imposed a 2% luxury tax and a 13% value-added tax (VAT) on gold in the current fiscal year 2025/26 budget. Following traders’ opposition, the government removed the tiered luxury tax, said Dharma Sundar Bajracharya, First Vice President of the Federation of Nepal Gold and Silver Dealers Association. Previously, the provision imposed a 2% luxury tax at every stage of purchase from the bank.

Number of Labor Permits Increases Compared to Last Year

Compared to the first month of fiscal year 2024/25, the number of labor permits issued increased in the same period of fiscal year 2025/26. According to the Department of Foreign Employment, 68,110 labor permits were issued this in the first month of this fiscal year, up from 59,575 last year. Department Director General Kamal Prasad Bhattarai said the rise is due to higher demand from labor destinations recently.

Agriculture Ministry Conducts Nationwide Agricultural Survey

The Ministry of Agriculture and Livestock Development is conducting a nationwide agricultural survey to collect official agricultural statistics. The purpose is to collect reliable and transparent data from the agriculture and livestock sector. Currently, agricultural surveys are underway in five provinces, coordinated between the federal ministry and provincial agriculture ministries.

Bagmati Spends Rs 387.34 Million in First Month of Current FY

The Bagmati Provincial Government spent Rs 387.34 million in the first month of the fiscal year 2025/26. According to expenditure details released by the Ministry of Economic Affairs and Planning up to Shrawan (Nepali Calendar), this amount accounts for 0.06% of the total budget. The ministry’s details indicate that the provincial government had allocated a total budget of Rs 67.47 billion for the current fiscal year.

EXIM Bank to Facilitate Financing for Two Hydropower Projects in Nepal

The Export-Import Bank of China (EXIM Bank) will act as a financial facilitator/mediator for two hydropower projects through Sanima Bank Limited: Manang Marsyangdi Hydropower Pvt. Ltd. (135 MW) and Langtang Bhote Koshi Hydropower Pvt. Ltd. (120 MW). EXIM Bank appointed Sanima Bank as its agent in Nepal. A memorandum of understanding was signed at a special program at EXIM Bank’s Sichuan branch in China.

Import of Beer Raw Materials and Bottles Increasing Annually

The import of raw materials and bottles for beer production has been increasing annually. Three major beer industries in Nepal import materials via the Krishnanagar border. In the past two years, malt imports for beer production have totaled Rs 197.63 million, while beer bottles imported amounted to Rs 187.04 million.

Soybean Crude Oil Surpasses Diesel in Import Trade

For the first time in import trade, soybean crude oil has surpassed diesel. In the first month of the current fiscal year, 7,176,000 liters of soybean crude oil were imported, worth Rs 1.08095 billion. This quantity and value are the highest ever imported in the first month of fiscal year. Last year, 9,069,000 liters of soybean crude oil, worth Rs 130.79 million, were imported.

Muglin-Pokhara Road Project (Eastern Section) Extended for Fourth Time

The Muglin-Pokhara Road Project (Eastern Section) has received a fourth extension. The Ministry of Physical Infrastructure and Transport extended the section from Jamune to Aanbukhaireni in Tanahun district. According to project engineer Bishnu Prasad Pandey, the new deadline is October 11. The third extension expired on July 13.

Gurgi Irrigation Project in Kailali Left Incomplete for 56 Years

The Gurgi Irrigation Project in Kailari Rural Municipality–2, Kailali, built nearly 56 years ago, remains incomplete. A permanent dam built in fiscal year 2006 was destroyed by floods in 2007 leaving the project unfinished. Although annual budget allocations have been made for construction, progress has been stalled due to the lack of a secure water source, according to the Water Resources and Irrigation Division Office, Sudurpaschim Province.

Tata EV Auto Show Underway in Birgunj

Sipradi Trading Pvt. Ltd., the official distributor of Tata Motors in Nepal, in collaboration with Prime Auto Traders, is holding a Tata EV Auto Show in Birgunj. The show, ongoing since August 22 at Hotel Vishuva, Bypass Road, will continue until today. The auto show features the latest Tata Motors electric models and attractive offers for customers.

Mabilung Energy IPO Allotment Completed

The primary share (IPO) allotment of Mabilung Energy, previously opened for the public, has been completed. The IPO allotment was conducted through a formal program by the sales manager, Laxmi Sunrise Capital. The IPO was open for applications from August 11 to 14. A total of 2,205,871 applicants applied, of which 8,289 applications were canceled for various reasons.

Gold Price Surges by Rs 2,300 per Tola on Sunday

On Sunday, the price of gold rose by Rs 2,300 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, this increase is compared to Friday’s price. As a result, on Sunday, the price of hallmark gold reached Rs 197,500 per tola, up from Rs 195,200 per tola on Friday.