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 Index Drops Marginally by 1.94 Points on Wednesday

The Nepal Stock Exchange (NEPSE) witnessed a slight decline on Wednesday, with the benchmark index falling by 1.94 points compared to the previous trading day. Following this minor drop, NEPSE closed at 2832 points. Interestingly, before the final 15-minute weighted average price calculation, the market had gained 2 points. However, after recalculations, it ended in the red. During trading hours, the NEPSE index reached an intraday high of 2856 points at 1:46 PM, while the day’s lowest point was recorded at 2828 points at 11:37 AM.

NRB Withdraws Rs 40 Billion to Manage Liquidity

Nepal Rastra Bank has withdrawn Rs 40 billion from the market on Wednesday through a 40-day deposit collection bid. The central bank has taken this action to manage the persistent surplus liquidity in the banking system, which has been an ongoing issue since the start of the current fiscal year. The total deposits have now exceeded NPR 7.1 trillion. Due to the continuous rise in deposits, a bidding system through the online purchase platform is being introduced.

NRB’s Interest Rate Corridor Causes Rs 10 Billion Loss

The Nepal Rastra Bank incurred a loss of approximately Rs 10 billion while implementing its interest rate corridor to manage excess liquidity. The central bank spends money to absorb surplus funds from the market, and this cost was incurred in the last fiscal year to prevent the short-term interest rate from falling below the corridor’s lower limit.

Capital Loan Guidance Fails to Curb Loan Recycling for Repayments

Despite the implementation of the Working Capital Loan Guidelines by Nepal Rastra Bank, the practice of using new loans to repay old ones persists at the end of each quarter. Data from the final week of the last fiscal year further reinforces suspicions that loans are being recycled for repayments. In the last week of last fiscal year alone, banks and financial institutions expanded credit by Rs 18.62 billion.

Government Prioritizing Dust-Free and Mud-Free Roads: Finance Minister Paudel

Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel announced that the government has placed high priority on building dust-free and mud-free road infrastructure. Addressing an event in Kathmandu on Wednesday, Poudel said the government is committed not just to imagining such roads but also to implementing practical measures to realize them.

Nepal to Register Migrant Workers in India under New Labor Migration Policy

The government has cleared the way to register Nepali workers in India for welfare services. A cabinet meeting on Sunday approved the National Labor Migration Policy–2025, proposed by the Ministry of Labor, Employment and Social Security. This policy opens doors for formally bringing Nepalis working in the Indian labor market under the labor migration framework. Now, employment service centers at the local level will collect and manage data of Nepali workers going to India.

Nepal’s Food Testing Labs Receive International Accreditation for Expanded Parameters

The Department of Food Technology and Quality Control’s testing of food product groups has received international recognition. India’s National Accreditation Board for Testing and Calibration Laboratories (NABL) has granted a two-year mutual recognition to Nepal’s food technology sector. Previously, Nepal’s National Food and Feed Reference Laboratory (NFFRL) had received international accreditation for 386 testing parameters.

Energy Minister Blocks NEA’s Budget Over Transfer Disputes with Executive Director

Nepal Electricity Authority (NEA) Executive Director Hitendra Dev Shakya’s refusal to transfer employees as per vested interests has led Energy Minister Deepak Khadka to halt the approval of NEA’s annual budget and programs. Despite the budget being tabled at NEA’s board of directors on July 2, it has not been approved to date. Minister Khadka, who is also the chairperson of the NEA board, has withheld budget approval.

Nepal’s Power Exports Surge, Imports Decline

Nepal exported electricity worth Rs 17.46 billion in the fiscal year2024/25. This marks a significant increase from the previous year, with exports reaching India and, for the first time, Bangladesh. During the same period, electricity imports from India decreased to Rs 12.92 billion.

UAE Becomes Top Destination for Nepali Migrant Workers

The United Arab Emirates (UAE) was the leading destination for Nepali migrant workers in the last fiscal year 2024/2025. According to the Department of Foreign Employment, over 274,590 individuals received labor permits for the UAE, accounting for 32% of the total 839,266 permits issued during that period.

Federal Government to Hand Over Roads and Bridges to Provincial Governments

The federal government has decided to transfer transport infrastructures such as roads and bridges to the provincial governments. Even after the implementation of federalism, most of the roads and bridges remained under the jurisdiction of the federal government. However, these infrastructures will now be handed over to the respective provincial governments.

Mixed Policy Adopted in New Land Valuation for Kathmandu in FY 2025/26

For fiscal year 2025/26, local administrations in the Kathmandu Valley have adopted a mixed policy in determining the minimum government valuation of land. In certain areas of Tokha, land prices have been increased by approximately 10%. The valuation has been raised for lands ranging from those adjacent to main roads in Budhanilkantha, Tokha, Dhapasi, and Tarkeshwar municipalities to inner plots without road access.

Farmers Protest Discontinuation of Sugarcane Subsidies

Sugarcane farmers are currently protesting in Mahottari against the government’s discontinuation of a Rs 70 per quintal subsidy. The budget for the new fiscal year did not include this support, leaving farmers aggrieved. They have threatened to launch a capital-centric protest in Kathmandu if their demands are not met.

Stagnant Fertilizer Stocks in Nepalgunj Begin Distribution Amid Severe Shortage

Fertilizers that had been stuck at the Salt Trading Corporation Limited’s Provincial Office in Nepalgunj during a period of acute shortage have started being distributed from Tuesday. Although fertilizers had been arriving for the past few days, distribution only began on Tuesday after the Provincial Ministry of Agriculture issued a quota allocation letter on Monday afternoon.

Counterfeit Currency Busted in Sunsari, Raises Business Concerns

Police at the Bhimnagar border post in Sunsari arrested two individuals from India with 38 fake Rs 1,000 notes. The incident, which took place on Wednesday has raised concerns among local business owners about the potential impact of fake currency on their transactions and the market.

94 Industries Shut Down in Dhanusha During Fiscal Year 2024/25

Out of 689 firms registered in Dhanusha during fiscal year 2024/25, 94 industries have closed down. The global economic impact post-COVID-19, combined with domestic challenges like economic slowdown, issues in the banking system, and liquidity crunch, has been cited as the reason behind the closures. The shutdown of these businesses has resulted in over 5,000 workers losing their jobs.

Bheri-Babai Diversion Project Reaches 69% Completion

Construction on the Bheri-Babai Diversion Multipurpose Project, aimed at providing year-round irrigation and generating 46 megawatts of electricity, has reached 69% completion over 10 years. This falls short of the national goal for such projects to be completed within a decade.

 Auto Dealers Report Strong Sales in FY 2024/25 Amid Economic Recovery

With Nepal’s economy gradually recovering from the COVID-19 slump, eight major automobile dealers reported high sales figures in the last fiscal year. The automobile sector, which had been in decline due to the pandemic, has shown significant improvement in recent times. In the first nine months of fiscal year 2024/25, dealers of various automobile brands achieved robust sales.

Automobile Sector Must Be a Priority in Economic Policies: NAIMA President

Ritu Singh Vaidya, President of the Nepal Automobile Importers and Manufacturers Association (NAIMA) has emphasized that Nepal’s automobile and mobility sector has been significantly contributing to the country’s economic growth. Speaking at the inaugural session of the NAIMA Mobility Expo, Vaidya highlighted that this sector alone has generated about 4.7% employment within the services sector.

Swastik Laghubitta Announces IPO for General Public

Swastik Laghubitta Bittiya Sanstha is set to launch an IPO for the general public on Thursday, August 14. The company will issue 195,195 shares at a face value of Rs 100. The application period runs until Sunday, August 17, with a possible extension to August 28 if undersubscribed.

Gold Price Decreases, Silver Price Increases

The price of hallmark gold has decreased by Rs 100 to Rs 198,400 per tola (11.66 grams) in the domestic market on Wednesday. Silver, however, saw an increase of Rs 25, trading at Rs 2,305 per tola. This is according to the latest price bulletin from the Federation of Nepal Gold and Silver Dealers’ Association.