KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

NRB Collects Bids for Rs 60 Billion Deposit Instrument

Nepal Rastra Bank (NRB) collected bids for a Rs 60 billion deposit collection instrument on Friday as part of its liquidity management measures. The 19-day instrument was offered through the central bank’s Online Bidding System Software (OBSS), with bidding closing at 3:00 PM. According to NRB, the instrument was issued on the same day, while the principal and interest are scheduled to be repaid on October 9. The interest rate will be determined through competitive bidding. Only NRB-licensed Class A, B, and C banking and financial institutions were eligible to participate, with bids starting from Rs 100 million.

NEPSE Falls 1.13 Points with Rs 6.86 Billion Turnover Today

The Nepal Stock Exchange (NEPSE) edged down by 1.13 points (0.04 percent) on Friday to close at 2,600.78, extending its losing streak for the week. The Sensitive Index also declined by 0.58 points to 453.60. Despite the marginal drop, trading activity strengthened, with 10.66 million shares of 367 companies traded through 53,432 transactions, generating a turnover of Rs 6.86 billion, up from Rs 4.61 billion on Thursday. Share prices of 120 companies advanced, 135 declined, and 19 remained unchanged. Aatmanirbhar Laghubitta Bittiya Sanstha posted the biggest gain at 10.66 percent, while Bhagawati Hydropower Development Company was the top loser, falling 7.84 percent.

European Union Finances €5 Million Regional Power Trade Project

The European Union launched a four-year, EUR 5 million regional energy connectivity project on Friday to expand cross-border electricity trading networks across South Asia. Managed by Expertise France, the program includes Nepal, India, Bangladesh, Bhutan, and Sri Lanka. Minister for Energy, Water Resources, and Irrigation Biraj Bhakta Shrestha highlighted that the initiative aligns with the country’s domestic goal to generate 28,500 MW of hydropower by 2035. The cross-border infrastructure program will harmonize regional energy policies, fund joint technical studies, and provide access to European grid management frameworks to reduce greenhouse emissions.

Madhesh Province Spends 56% of Budget in FY 2025/26

Madhesh Province spent 56.31 percent of its total budget in the fiscal year 2025/26, with overall expenditure reaching Rs 26.456 billion out of an allocated Rs 46.983 billion, according to the Province Treasury Controller Office. Current expenditure stood at 60.69 percent, with Rs 9.491 billion spent from a budget of Rs 15.638 billion, while capital expenditure reached 54.12 percent, totaling Rs 16.965 billion out of Rs 31.345 billion. Among provincial ministries, the Ministry of Health and Population recorded the highest budget utilization at 71.45 percent, while the Office of the Chief Minister and Council of Ministers posted the lowest at 36.06 percent. The Provincial Assembly spent 68.60 percent of its allocated budget, while the Provincial Public Service Commission recorded 65.60 percent expenditure.

Lumbini Province Reaches 67% Fiscal Execution Milestone

The Ministry of Economic Affairs and Planning along with the Provincial Accounts Comptroller Office, released financial logs showing that Lumbini Province executed 67.18 percent of its fiscal plan by July 9. Out of a total Rs 38.91 billion outlay, the administration disbursed Rs 26.142 billion. Recurrent spending touched 67.76 percent at Rs 10.462 billion, while capital project expenditures reached 66.80 percent at Rs 15.677 billion. The Ministry of Health topped organizational efficiency, achieving a 79.38 percent physical utilization rate.

Govt Clears Over Rs 33 Billion in Single-Day

On the final legal day of the fiscal year, the government rushed out a massive Rs 33.16 billion to clear pending bills before freezing the regular payment system. This single-day spending spree included Rs 12.42 billion for recurrent costs, Rs 2.35 billion for debt servicing, and Rs 18.39 billion for capital expenditures the latter accounting for roughly 10 percent of the entire year’s infrastructure spending. This last-minute spike highlights a chronic structural issue, as the government closed out the year having utilized just 44.51 percent (Rs 181.56 billion) of its total capital budget and 79.69 percent (Rs 1.56 trillion) of its overall spending target. Under fiscal accountability rules, the system is now locked for the final week of the fiscal year to prevent new liabilities, though pre-existing, documented dues can still be cleared under strict oversight.

Ministry Reopens E-7 Skilled Labor Visa Application Pipelines for South Korea

The Ministry of Youth, Labor and Employment issued a directive to resume skilled migration processing under South Korea’s E-7 Visa program following an official clearance note from the Patan High Court. Ministry Joint Secretary Pitambar Ghimire confirmed that the department forwarded the necessary labor execution documents to the Ministry of Foreign Affairs on Friday to authorize private manpower recruitment agencies to source applicants. The skilled labor migration channel was previously halted by the Commission for the Investigation of Abuse of Authority, but a recent judicial order restored the program under Skilled Labor Guidelines, 2023.

Preliminary Work Begins for Rs 55 Billion Upper Mugu Karnali Hydro

The Department of Electricity Development published a public notification on Friday initiating environmental impact evaluations and feasibility studies for the Upper Mugu Karnali Hydropower Project. Elevate Energy Chief Executive Officer Prabin Aryal stated that the run-of-river project holds an estimated installation capacity of 306 MW. Estimated construction costs for the mega project settle at Rs 55.33 billion. The plant features four vertical-axis Pelton turbines to generate 1,629 GWh of annual energy, feeding electricity through a 55-kilometer double-circuit line to the Phukot Hub Substation by August 2033.

Land Mapping Accord Resolves Dispute in Birgunj

The District Administration Office in Parsa finalized a land agreement on Thursday to resolve a long-standing highway alignment dispute along the Tribhuvan Highway near Ghantaghar. Chief District Officer Bhola Dahal led a four-hour multi-party technical hearing, choosing the official 1989/90 town cadastral maps as the primary legal guide. Engineering teams from Birgunj Metropolitan City and the Survey Department will execute a balanced 8.6-meter transit corridor running symmetrically between Ghantaghar and the Nepal Telecom facility. Local property holders will receive a temporary window to clear overlapping structures after surveyors plant final boundary stakes.

Irregular Flights Hamper Aviation Fuel Sales at Tarigaun Airport

Irregular airline operations at Tarigaon Airport have continued to affect aviation fuel sales, with the Nepal Oil Corporation reporting low monthly demand despite an increase in annual fuel consumption. Depot Accounting Officer Kailash Devkota said the fuel station sold 1,000 liters in a month from mid-April to mid-May, 660 liters from mid-May to mid-June, and 834 liters so far in June. Annual sales, however, increased from 17,909 liters in the fiscal year 2024/25 to 34,340 liters in 2025/26. Although aviation fuel is currently priced at Rs 269 per liter, Devkota said revenue remains limited as airlines frequently reduce flight operations from four to two flights a week.

Temporary Entry Pass System Introduced for Indian Vehicles in Thori

The Birgunj Customs Office has introduced a temporary arrangement to ease disruptions to the entry of Indian vehicles in Thori, deploying two officials at the Thori Sub-Customs Office to issue free temporary entry passes. The office said the measure, which came into effect on July 7, allows Indian vehicles to operate within the Thori area using the temporary passes until a permanent solution is decided. The interim arrangement was introduced after the issue of halted entry of Indian vehicles was raised in the House of Representatives. The customs office said it has also written to the concerned ministry seeking further decisions on the matter.

Budget Crunch Halts Construction of Lamahi Trauma Center

The Lumbini Province pride infrastructure rollout faces severe construction delays at the 50-bed Lamahi Trauma Center due to consecutive fiscal shortfalls. Structural foundation work started on April 14 under a Rs 194.1 million contract file with Lama and Gaurishankar Himalayan Construction Private Limited. Although teams reached an 80 percent physical progress mark, final painting, interior finishing, and medical utility plumbing stalled. The Urban Development and Building Office confirmed that finishing the hospital requires Rs 70 million, but the state allocated only Rs 30 million for the current fiscal cycle.

Government Blacklists 10 Firms from Public Procurement

The government has blacklisted 10 construction and supply companies, barring them from participating in public procurement, bidding, and construction works for periods ranging from one year to three years on Thursday by the Public Procurement Monitoring Office. Among them, Mahadev Khimti Nirman Sewa, owned by former Federation of Contractors’ Associations of Nepal (FCAN) President Rabi Singh, and Pappu-Mahadev JV, a joint venture between Mahadev Khimti Nirman Sewa and Pappu Construction, were each barred for three years. Shrestha Construction Company was also blacklisted for three years, based on recommendations from the Postal Highway Directorate, Itahari. Other firms blacklisted include Global Drugs Suppliers Bharat-Siddhasai, Lumbini Motors and Pump Industries, Hira Nepali Nirman Sewa, Mayumi Construction and Shubham Nirman Sewa. During the blacklisting period, the companies will be ineligible to participate in procurement activities of any public entity.

FNCCI Urges Implementation of Sunset and Protection Acts

The Federation of Nepalese Chambers of Commerce and Industry (FCAN) petitioned Prime Minister Balendra Shah on Wednesday to shift the state’s economic presence from a rigid regulatory body into an active market facilitator. The business delegation requested the immediate enforcement of the Black Marketing Act’s structural repeals, alongside the Sunset Law, Debt Recovery Act, and the Intellectual Property Protection Act. Federation representatives noted that the private sector generates 81 percent of national economic output and 86 percent of jobs but faces low consumption demand. They proposed establishing a Unified Tax Code to merge provincial tax fields and lower overall manufacturing operational costs.

Reliable Insurance Sets Expiry for Lock-In Share Portfolios

Reliable Nepal Life Insurance Company announced that its mandatory corporate lock-in compliance period will officially expire on August 15. The structural freeze affects a combined pool of 37,157,120 equity units registered with the Securities Board of Nepal out of 51,968,000 total bonus-inclusive corporate shares. Financial logs show that the upcoming market release comprises 36,377,600 founder holdings alongside 779,520 internal staff shares. The conclusion of the lock-in timeline allows institutional promoters and company employees to legally trade or transfer their physical asset blocks on the secondary stock exchange.

Gold Traded at Rs 287,400, Silver at Rs 4,510

Gold and silver prices increased in the market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold surged by Rs 2,700 per tola (11.66 grams) today and is currently being traded at Rs 287,400. On Thursday, the precious metal was traded at Rs 284,700 per tola. Similarly, silver prices also moved upward on Friday. The price of silver rose by Rs 170 per tola to settle at Rs 4,510, compared to Rs 4,340 per tola on Thursday.