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Tuesday, August 26, 2025

Nepal News Evening Economic Brief – August 3, 2025

August 3, 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 Falls by 63.73 Points, Market Closes at 2,858 on Sunday

On the first trading day of the week, Sunday, Nepal’s stock market witnessed a sharp decline as the NEPSE index dropped by 63.73 points, closing at 2,858. During the final 15 minutes, due to the absence of weighted average price calculation, the index even touched a low of 2,857 points — the day’s lowest. The transaction volume also decreased compared to the previous session. While the market had recorded a turnover of Rs 15.98 billion on the last trading day, Sunday’s turnover shrank to Rs 13.07 billion.

Nepal Rastra Bank to Absorb Rs 50 Billion Amid Excess Liquidity

Due to excess liquidity in banks, Nepal Rastra Bank is set to absorb Rs 50 billion through deposit collection this Sunday. The central bank will absorb deposits via auction under its deposit collection instruments. The total deposits have surpassed Rs 7.2 trillion. The central bank aims to manage excess liquidity and interest rates through deposit collection instruments and standing deposit facilities.

Finance Ministry Begins Inter-Ministerial Discussions on Budget Implementation

The Ministry of Finance has initiated inter-ministerial discussions regarding the implementation of the fiscal year 2025/26 budget. Today, it held discussions with the Ministry of Industry, Commerce, and Supplies. The meeting also discussed advancing the Bhagat Sarvajit Entrepreneurship Development Program, which aims to protect the Dalit community’s traditional skills, arts, and occupations by transferring modern technology, providing training, and connecting products to the market to create employment and income opportunities.

Nepal Records Rs 1.527 Trillion Trade Deficit in FY 2024/25

Nepal imported goods worth Rs 1.804 trillion while exporting goods worth only Rs 277.03 billion in fiscal year 2024/25, resulting in a trade deficit of Rs 1.527 trillion, according to the Customs Department. Nepal traded with 163 countries, of which only 37 countries had a trade surplus with Nepal. Trade deficit with the remaining countries continues to rise as Nepal imports more than it exports, the department’s data shows.

IPPAN Calls for Removal of Dual ISIN Numbers in Dematerialized Shares

The Independent Power Producers’ Association, Nepal (IPPAN) has drawn the attention of four regulatory bodies to remove the provision of assigning separate International Securities Identification Numbers (ISIN) for promoters and general public while dematerializing company shares. After CDS and Clearing Limited (CDSC) proposed to Nepal Securities Board (SEBON) to assign separate ISIN numbers for promoters and general shareholders during company listing, IPPAN has appealed to the Finance Minister, Parliament’s Finance Committee, SEBON, and CDSC to revoke this provision.

NRB Analysis Finds High Operational Risks in Government Banks

Analyzing data up to the third quarter of fiscal year 2024/25, Nepal Rastra Bank (NRB) has found higher operational risks in government-owned banks. For private sector banks operating with accumulated losses, overall risks are also deemed high by NRB’s assessment. Due to the elevated risks, NRB has instructed NIC Asia, Kumari, and Prabhu Bank to maintain an additional 4 percent capital against risk-weighted assets and imposed a 3 percent ‘capital charge’ for operational risk on these banks.

NRB Preparing to Launch ‘Regulatory Sandbox’ for Fintech Innovation

To promote innovation in digital financial services with regulation, Nepal Rastra Bank is preparing to implement a ‘Regulatory Sandbox’ project. The bank’s Payment Systems Department has drafted guidelines for the sandbox and published them this week. The draft aims to ensure the safety of new technologies while enhancing accessibility, usability, and quality of digital transactions and services provided by financial technology companies.

1,517 Nepali Migrant Workers Died Abroad in FY 2024/25

A large number of Nepali migrant workers lost their lives abroad. According to the Foreign Employment Board, 1,517 Nepali workers who had taken labor permits died in foreign countries during fiscal year 2024/25. This number is based on records of families who received financial assistance from the Board. The actual number of deaths, including those who died after their labor contracts expired or those who went abroad without permits, is much higher, though there are no official figures available.

Government Slashes SEZ Land Lease Rates by 75 Percent

The government has reduced the land lease rates in Special Economic Zones (SEZ) by 75 percent. Effective from the current fiscal year’s July 17, the lease rate has been reduced from Rs 20 per square meter to Rs 5 per square meter. This decision comes after complaints from industrialists regarding high lease rates, leading the SEZ Authority to advocate for a reduction, which was then addressed through the government’s policy and budget speech. The decision applies to Simara, Bhairahawa, and Panchkhal SEZs.

Nepal Receives 647,882 Foreign Tourists in First Seven Months of 2025

Nepal welcomed a total of 647,882 foreign tourists from January to July 2025. This is the highest arrival figure since the COVID-19 pandemic. In July 2025 alone, Nepal received 70,193 international tourists, an 8.7 percent increase compared to the same period last year. Nepal Tourism Board’s CEO Deepak Raj Joshi said Nepal’s tourism is rebounding and reestablishing itself as a popular global destination.

Nepal Exported Tea Worth Rs 4.58 Billion in FY 2024/25

Nepal exported tea worth Rs 4.58 billion last year. According to the Customs Department, Nepal exported 155.98 million kilograms of tea worth Rs 4.5869 billion in fiscal year 2024/25. In the previous fiscal year 2023/24, Nepal had exported 139.16 million kilograms of tea worth Rs 3.62 billion.

 

Four Life Insurance Companies Defy Business Distribution Rules for Migrant Workers’ Term Insurance

Four life insurance companies have defied the rules regarding business distribution for foreign employment term life insurance. Nepal Insurance Authority had mandated companies to distribute business proportionately and operate through a collective insurance pool from July 16, 2024 However, these four companies have resisted distributing business as per the directive issued last Bhadra.

Narayangadh-Butwal Road Project Deadline Extended by One Year for Final Time

The deadline for completing all works of the Narayangadh-Butwal road project has been extended by one year for the final time. According to the project, the extended deadline is set for July 24, 2026, by which all works must be completed. “The current physical progress of this road project stands at 70 percent, and we assure that the entire work will be completed within this period,” said an official from the project.

Insurance Claims Exceed Rs 840 Million After Bhotekoshi Flood

Insurance claims exceeding Rs 840 million have been filed after the flood in the Bhotekoshi River in Rasuwa on July 8, 2025. According to the Insurance Board, claims amounting to Rs 848.4 million have been filed for damages to properties and vehicles caused by the flood.
Among these, Himalayan Everest Insurance alone has received claims of Rs 550 million, which accounts for 64.82 percent of the total claims.

Financial Management Agreement Signed for Bajhang Upper Seti Hydropower Project

A financial management agreement has been signed for the construction of the 216 MW Bajhang Upper Seti Hydropower Project in Bajhang, Sudurpaschim Province, with Kumari Bank leading the loan investment. Under the leadership of Kumari Bank and co-leadership of NMB Bank, other financial institutions including Machhapuchhre Bank, HIDCL, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Agricultural Development Bank, Lumbini Development Bank, Shangri-La Development Bank, Kamana Sewa Development Bank, and ICFC Finance will jointly invest in the project.

Kathmandu Metropolitan City Spends Rs 13.03 Billion in FY 2024/25

Kathmandu Metropolitan City spent Rs 13.03 billion in fiscal year 2024/25. Out of the allocated Rs 25.86 billion budget, the metropolis spent only 52.13 percent. Under capital expenditure, Rs 6.739 billion was spent, while Rs 6.629 billion was spent on recurrent expenditure.

 

 

Kalika Refinery Records Rs 3.41 Billion Transactions in 10 Months

Kalika Refinery Pvt. Ltd. recorded transactions worth approximately Rs 3.41 billion in the first 10 months of the last fiscal year. During this period, the company conducted transactions worth Rs 3.414 billion. In 2024, the company had transactions worth Rs 2.092 billion; in 2023, Rs 2.612 billion; in 2022, Rs 2.811 billion; and in 2021, Rs 440 million.

NIC Asia Mutual Fund Declares Dividends on Four Schemes

NIC Asia Mutual Fund has announced dividends for four of its schemes. Accordingly, the closed-end scheme NIC Asia Flexi Cap Fund will distribute a 10.10 percent dividend to unit holders. Similarly, the Balanced Fund will give a 9.90 percent dividend, Select 30 (Index Fund) will provide 8.65 percent, and the open-end Dynamic Debt Fund will distribute a 5.55 percent cash dividend.

Gold and Silver Prices Surge in Nepali Market

Gold and silver prices increased in the Nepali market today (Sunday). Gold prices rose by Rs 3,400 per tola today. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold is being traded at Rs 196,500 per tola today. Last Friday, hallmark gold was traded at Rs 193,100 per tola. Similarly, silver prices also increased today. Silver is being traded at Rs 2,250 per tola today, up by Rs 15 compared to Rs 2,235 per tola last Friday.