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.

IPPAN Issues Flood Alert to Hydropower Projects Amid Heavy Rain Forecast:
The Independent Power Producers’ Association Nepal (IPPAN) has urged all hydropower projects to remain on high alert from July 18 to 20 due to forecasted heavy rainfall. Citing warnings from the Department of Hydrology and Meteorology, IPPAN highlighted flood risks in major rivers including Koshi, Tamor, Arun, and Mahakali. Flooding could impact Kathmandu, the Narayani basin, and central and western districts. IPPAN called for urgent safety measures at both operational and under-construction sites, recalling the recent Bhote Koshi flood that damaged several projects. The association stressed preparedness to prevent potential loss of life, property damage, and power outages.

NEPSE Soars 138.83 Points in a Week as BFIs Slash Interest Rates:
Nepal Stock Exchange (NEPSE) surged by 138.83 points last week, fueled by the announcement of lower interest rates by banks and financial institutions (BFIs). Following Nepal Rastra Bank’s directive to implement the Monetary Policy 2025/26, investor sentiment turned bullish. The NEPSE index rose from 2,731.80 to 2,870.63 points, with total turnover soaring by 43.4% to Rs 59.63 billion. All 13 trading groups posted gains, led by microfinance, development banks, and hydropower. Market capitalization jumped by Rs 232 billion to Rs 4.783 trillion. Three Star Hydropower gained the most (21.92%), while Bhagawati Hydropower fell the most (10.12%).

Government Cancels Permits of 37 Construction Firms for Licence Lapse:
The government has annulled the licenses of 37 construction companies for failing to renew their operating permits on time, the Ministry of Physical Infrastructure and Transport announced Thursday. The affected firms include three class ‘A’ contractors, five class ‘B’, and the rest class ‘C’. Notable companies facing the action include Ganapati Group of Construction, Valley Star Builders, Deluxe The Brave Warrior of Construction, and International Infra Builders. Firms from districts such as Kathmandu, Lalitpur, Jhapa, Dang, Siraha, and Kanchanpur are among those penalized. The ministry stated the move was in line with enforcement of licensing compliance rules.

Minister Pandey Calls for Safer Alternative Route to Summit Mt. Everest (Sagarmatha):
Tourism Minister Badri Prasad Pandey has called for the exploration of a safer alternative route to summit Mt. Sagarmatha, citing increasing risks on the traditional Khumbu Icefall path. In a discussion held Friday at the Ministry of Culture, Tourism and Civil Aviation, Pandey emphasized the need for secure, environment-friendly, and sustainable mountaineering options. French climber Mark Mari Batart and Nepali mountaineer Sping Kaji Sherpa presented research and photographic evidence supporting an alternate route. The duo has been advocating for a safer path since 2018. Sagarmatha, a symbol of national pride, attracts thousands of climbers annually despite growing hazards on the current route.

Nepal Achieves Record Rs 17 Billion Electricity Exports to India and Bangladesh in FY 2081/82:
In fiscal year 2081/82, Nepal exported electricity worth approximately Rs 17 billion to India and Bangladesh, marking its highest achievement to date, according to the Ministry of Energy, Water Resources, and Irrigation. During the same period, Nepal imported nearly Rs 16.9 billion worth of electricity, gradually reducing reliance on imports by boosting domestic production. Nepal exported up to 941 MW and imported 1,000 MW under agreements with India, with seasonal variations reaching 850 MW export during the rainy season and 670 MW import in the dry season. Nepal also began exporting 40 MW to Bangladesh in US dollars, expanding its hydropower market internationally.

After 18 Years, GMR’s Upper Karnali Hydropower Project Moves Forward:
Nearly two decades after its inception, GMR has initiated construction for the 900 MW Upper Karnali Hydropower Project in Nepal. Tenders were issued on July 8 for three major infrastructure packages, including a 2.4 km tunnel and a 150-metre bridge. With an estimated cost of Rs146 billion, the project is now backed by a joint venture involving GMR, India’s SJVN, IREDA, and Nepal Electricity Authority. Despite legal delays and the collapse of a 500 MW export deal with Bangladesh, the project has secured court approval and restructuring. It will operate under a 25-year BOOT model, supplying 108 MW for domestic use.

Nilbahadur Saru Magar Elected as President of ICAN; Anand Raj Sharma Elected Vice President:
Nilbahadur Saru Magar has been unanimously elected as the new president of the Institute of Chartered Accountants of Nepal (ICAN) during its 10th council meeting held on Ashad 32. Anand Raj Sharma Wagley was elected vice president. Both took oath of office and secrecy on Friday, with Saru Magar sworn in by Auditor General Toyam Rai. Having served as vice president for one year, Saru Magar pledged to act as a bridge between two generations and focus on implementing ICAN’s newly formulated five-year strategic plan based on four pillars. Outgoing president Praveen Kumar Jha highlighted institutional progress and added 208 new CAs this year.

Nepal Telecom Networks Exploited for Illegal “SMS Bypass” of Foreign Verification Messages:
Nepal Telecommunication Authority (NTA) has alerted about the rising misuse of telecom networks by unauthorized entities to illegally route foreign SMS verification codes from platforms like Facebook, Google, WhatsApp, Microsoft, and TikTok into Nepal. This “SMS bypass” exploits licensed providers like Nepal Telecom and Ncell, causing revenue losses for operators and government. The practice is similar to past “BOIP bypass” telecom fraud involving foreign calls. NTA has warned individuals and organizations involved in such illegal termination of international Application-to-Person (A2P) SMS and urged immediate cessation. Only licensed operators are permitted to carry international SMS, as per the Telecommunications Act 2053.

Only 6% of Nepali Adults Use Mobile Money, But Formal Savings Rise: World Bank Report:
While over 80% of Nepali adults own mobile phones, only 6% use mobile money accounts, according to the World Bank’s Global Findex 2025. Despite low digital financial engagement, 35% of Nepalis save formally, a growing trend linked to mobile technology’s role in improving financial access. The report highlights digital payments, debit card use, and remittance digitization but also notes barriers such as distance to banks and high costs. Gender gaps persist in card ownership and account use. The World Bank emphasizes that expanding digital finance can empower individuals, especially women, and boost economic growth, provided inclusive policies and security measures accompany technological advances.

Butwal-Narayanghat Road Still Incomplete After Seven Years, Deadline Extended Again:
Seven years after work began, only 70% of the Butwal–Narayanghat road upgrade has been completed. The Chinese contractor, China State Engineering Corporation, failed to meet multiple deadlines, prompting the government to extend the contract period for a fourth time—now until mid-2026. Originally scheduled for completion by mid-2022, the 113-km highway remains under construction, with just 100 km blacktopped so far. The worst condition is in the Daunne section, where traffic jams persist during rainfall. Despite delays, the government says costs will not increase. The project, divided into two segments, was contracted for Rs 17 billion and includes 4-6 lane expansions.

Nepal Receives Foreign Investment Proposals Worth Rs 6.5 Billion in FY 2081/82:
Nepal has received foreign investment proposals totaling approximately Rs 6.5 billion in fiscal year 2081/82, according to the Department of Industry. By mid-July, 840 projects submitted proposals, including Rs 6.03 billion for 389 industrial projects and Rs 461 million for 451 others. The tourism sector led with Rs 2.68 billion in proposals, followed by services (Rs 3.09 billion), IT (Rs 185 million), manufacturing (Rs 384 million), agriculture (Rs 146 million), and infrastructure (Rs 5 million). While small industries dominate registrations, employment is expected to reach nearly 20,000 jobs. Foreign investors also plan to repatriate Rs 961 million in dividends and royalties during the period.

Over 38,600 Individuals Blacklisted by Banks and Financial Institutions in Nepal as of Mid-July:
From mid-July 2081, a total of 38,685 individuals have been blacklisted by banks and financial institutions in Nepal, marking a significant increase compared to the previous year, according to the Credit Information Center. Between July 1 and 17 alone, 2,947 people were blacklisted, up from 1,096 in the same period last year. About 70% of blacklisting cases are due to cheque bounce, while the rest are loan defaulters. The rise in blacklisting is linked to increasing cheque bounce incidents and non-performing loans, worsened by economic slowdown. Experts warn that without economic stabilization, blacklisting could expand further despite restructuring efforts underway.

Surya Nepal’s Revenue Dips Slightly Amid Tobacco Market Challenges:
Surya Nepal Private Limited reported a marginal drop in revenue to Rs 28.81 billion in FY 2023/24, down from Rs 28.99 billion the previous year, according to CARE Ratings Nepal. Despite the dip, the ITC Limited-backed company remains financially strong, bolstered by its dominant cigarette brands and extensive distribution network. CARE flagged risks from rising tobacco taxes and growing demand for cheaper, untaxed alternatives like gutkha. With over 35 years in the market, Surya Nepal continues to lead Nepal’s formal tobacco sector, though its heavy reliance on cigarettes and limited diversification were noted as vulnerabilities.

NTB Unveils Rs 1.59 Billion Budget to Boost Sustainable Tourism in FY 2025/26:
The Nepal Tourism Board (NTB) has approved a Rs 1.59 billion budget for FY 2025/26, aiming to increase tourist arrivals and earnings by 15%. Seventy percent of the budget will go toward global marketing, including opening a permanent office in India. Key allocations cover tourism promotion, provincial outreach, heritage development, and digital campaigns under the theme “Nepal: A Lifetime Experience.” NTB also plans major travel marts, destination upgrades, skill training, and ASEAN Tourism Year 2026 promotion. The budget emphasises sustainability, climate resilience, disaster preparedness, and partnerships to advance the “Smart Tourism Nepal” vision through public-private collaboration.