Kathmandu
Monday, August 25, 2025

Nepal News Evening Economic Brief – August 25, 2025

August 25, 2025
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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 Gains After Three Trading Days, Most Sectors See Growth

After three consecutive trading days of stagnation, the share market rose on Monday. The NEPSE index increased by 21.30 points, closing at 2,761. During trading, the index reached a maximum of 2,764 points at 2:30 PM. Despite the index rise, the total transaction volume decreased. While the previous day’s turnover was Rs 6.54 billion, Monday’s transactions totaled Rs 5.75 billion. On this day, the stock prices of 179 companies rose, while 71 companies saw a decline. Most sectoral indices increased.

Stock Market Capitalization Reaches NPR 4.656 Trillion

The stock market capitalization stood at NPR 4.65699 trillion at the end of last fiscal year, according to data released by Nepal Rastra Bank. At the end of the fiscal year 2023/24, the market capitalization was Rs 3.5368 trillion. The market capitalization as a percentage of GDP was 62.25% in 2024, which increased to 76.25% in 2025.

Only 2.5 Million Vehicles to Get Embossed Number Plates

Currently, about 6.5 million vehicles are in operation in Nepal. However, the target is to install embossed number plates on only 2.5 million vehicles. So far, 80,000 vehicles have already been fitted. After installing on 1.2 million vehicles, the process for the remaining 1.3 million will begin along with tender procedures for other vehicles.

Rs 139 Billion Sent Abroad for Higher Education in Last FY

Although there are several universities and educational institutions for higher education within the country, a significant amount of money continues to be sent abroad. According to Nepal Rastra Bank data for fiscal year 2023/24, Rs 138.48 billion was sent abroad for education alone. The previous year, Rs 125.13 billion was sent. The central bank stated that under the service account, travel expenses increased by 18.1%, reaching Rs 223.72 billion. Last year, travel expenses were Rs 189.43 billion.

Balance of Payments Shows Surplus of NPR 59.454 Billion

The post-adjustment balance stands at a surplus of Rs 59.454 billion. Last year, it was Rs 50.249 billion. The current account surplus increased from Rs 221.71 billion last year to Rs 409.20 billion this year. In USD, the surplus went from USD 167 million last year to USD 301 million this year.

PM’s Deadline for Fertilizer Management Plan Expires

Although the deadline set by Prime Minister KP Sharma Oli to submit a plan for chemical fertilizer distribution and management has passed, the plan has not been presented. On August 12, the PM instructed the Ministry of Agriculture and Livestock Development to submit a solid plan on fertilizer management and production within three days. Even after 12 days, no plan has been submitted.

Government to Pay Pending Sugarcane Subsidy to Farmers

The government will immediately pay the pending subsidy to sugarcane farmers. The Ministry of Agriculture and Livestock Development stated that the remaining amount will be disbursed in a day or two. The ministry said the delay was due to the Finance Ministry’s late approval. Farmers will receive Rs 35 per quintal from FY 2024/25.

Bank Investments in Margin-Based Share Collateral Loans Increase

Investment by banks and financial institutions in margin-based share collateral loans has increased significantly. At the end of FY 2023/24, investment was Rs 9.09 billion. By the end of FY 2024/25, this increased by 56.17% to Rs 14.07 billion.

Budget Reallocation for 25 Major Road Projects

Out of key projects affected by budget shortages, the government has reallocated funds to 25 important road projects. Due to insufficient budget, projects were at risk. The Department of Roads allocated over Rs 25 million to 17 projects and reduced budgets for 5 projects. Most reallocated funds were requested by local representatives, MPs, and ministers.

Customs Evasion in Electric Vehicles Under Investigation

Customs evasion in electric vehicles has reached the Commission for Investigation of Abuse of Authority and the Revenue Investigation Department. When importing electric cars under 100 kW, importers declare 99 kW to pay lower taxes, exploiting the lack of a government verification system. Large importers have benefited from this practice.

SEBON to Amend Securities Registration and Issuance Regulations

The Securities Board of Nepal (SEBON) is in the initial phase of amending the Securities Registration and Issuance Regulations. SEBON is conducting internal review and discussion to address issues in securities registration and issuance. The most debated topics include local and public share provisions in listed hydropower companies and the “boot model” operated companies.

Private Sector Loans Increase by Only 8.4% Last Year

In FY 2023/24, loans to the private sector by banks and financial institutions increased by only 8.4%. This is just 67.2% of the target set by monetary policy, which aimed for 12.5% growth. Compared to the previous year, loan disbursement increased by 2.6 percentage points. Last year, private sector loans grew by 5.8%.

Land and Housing Companies Get One-Time Loan Restructuring Facility

Land and housing companies approved by the Government of Nepal will now be allowed to restructure loans. Nepal Rastra Bank has granted this facility once to land development and construction companies registered and operating under government approval. The central bank has set conditions for these companies while allowing loan restructuring.

Nepal Airlines’ Lumbini Aircraft Back in Service After 20 Days

Nepal Airlines’ Airbus A-320 “Lumbini” has returned to service after 20 days. On August 6, after flying from Hong Kong to Kathmandu, the aircraft’s first engine faced a problem. One engineer stated that the aircraft repair was complete. The airline has resumed flights from Monday evening. “It took seven days to detect the problem,” said another engineer. “It took five days to get spare parts from Nepal.”

Sidewalks in Jamal, Bhotahiti, and Sundhara Cause Trouble for Pedestrians

Sidewalks in Jamal, Bhotahiti, and Sundhara areas of Kathmandu have become a struggle for pedestrians. Construction materials are scattered everywhere on the sidewalks, causing inconvenience. Nepal Electricity Authority has dug in various places to lay underground electric wires. Some of the dug-up roads have been left unattended, becoming muddy even with a little rain, further troubling pedestrians.

Reassignment of 90 Officials Under Finance Ministry

The responsibilities of 90 officials under the Finance Ministry have been reassigned. Over 80 employees, including senior officials, were transferred last week. Again, at the wish of Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, section officers’ responsibilities have been widely reorganized. Rabindra Pyakurel, working at Rasuwagadhi Customs Office, has been transferred to an office under the Internal Department. Nirmal Kumar Mainali, working at Large Taxpayers Office Lalitpur, has been sent to the National Natural Resources and Finance Commission.

Imports from Kakarbhitta Reach Rs 3.694 Billion in First Month of FY 2025/26 

In the first month of FY 2025/26, goods worth Rs 3.694 billion were imported from Kakarbhitta, Eastern Nepal. Customs officer Ishwar Kumar Humagain stated that this is a decrease of Rs 190.2 million compared to the same period last year when imports were worth Rs 3.8843 billion. Exports from this checkpoint also declined in the first month of the current fiscal year.

Short-Distance Corridor to Connect Bulbule to Kankrevihar

A short-distance corridor connecting Bulbule to Kankrevihar in Surkhet will be constructed. The Karnali Province government plans a corridor with water facilities. The plan was included in this year’s policy and budget. A pre-feasibility study is underway. The project will be implemented by the Directorate of Water, Irrigation, and Energy Development under the Ministry of Water Resources and Energy Development.

Nepal Life Insurance to Sell NIC Asia Bank Founder Shares

Nepal Life Insurance Ltd. will sell its founder shares in NIC Asia Bank Ltd. at Rs 140 per share, totaling 200,000 shares. Only existing shareholders can apply. They have 35 days to submit applications. Applications must be submitted at the corporate office in Kamaladi, Kathmandu.

Nepal Mediciti Hospital Records Drop in Business

Nepal Mediciti Hospital, invested in by non-resident citizen and businessman Upendra Mahato, saw a decline in business last fiscal year. Operated by Ashwin Medical College and Hospital Pvt. Ltd., the hospital recorded lower business in 2025 compared to 2024. In 2024, the hospital’s revenue was Rs 2.744 billion. In 2025, it dropped by about Rs 200 million to Rs 2.555 billion.

Gold Prices Slightly Drop Ahead of Teej

The day before Teej, gold prices in the Nepali market slightly decreased. According to the Federation of Nepal Gold and Silver Dealers’ Association, on Monday, gold dropped by Rs 300 per tola compared to Sunday. According to the Federation, on Monday, the price of hallmark gold was Rs 197,200 per tola. Previously, on Sunday, it had been Rs 197,500 per tola.