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 9.14 Points, Transactions Cross Rs 9.64 billion: On the final trading day of the week, the Nepal Stock Exchange (NEPSE) index closed with a rise. The index increased by 9.14 points with a total share transaction amounting to Rs 9.64 billion and 55 lakh 50 thousand. In today’s trading, share prices of 122 companies rose, while 125 companies saw a decline in their stock value. Except for the hotel and tourism, hydropower, investment, microfinance, and trading groups, all other sectoral indices witnessed an upward trend. Among the stocks traded today, investors in Nepal Finance earned the highest profits, while shareholders of Saptakoshi Development Bank incurred the highest losses.

NRB Governor Poudel Says Access to Bank Loans Should Be a ‘Natural Right’: Nepal Rastra Bank Governor Dr. Biswo Nath Poudel has stated that every citizen’s right to obtain loans from banks should be established as a “natural right.” He made this remark on Thursday while responding to questions raised by lawmakers during the discussion on the amendment bill to the Bank and Financial Institution Act (BAFIA) in the House of Representatives’ Finance Committee. Governor Poudel emphasized the need for a fundamental debate on the traditional definition and practices of the banking system.

Government Expands Tax Net Significantly This Year: The government has significantly expanded the tax net this year. In the first nine months of the current fiscal year 2024/25, a total of 573,682 new taxpayers have been added. According to the latest data released by the Ministry of Finance, the total number of taxpayers in Nepal who have obtained a Permanent Account Number (PAN) has reached 6,799,895. This number accounts for approximately 23 percent of the country’s total population.

Foreign Aid Commitment Rises by 117% This Fiscal Year: One of the major sources of Nepal’s budget, foreign aid commitment, has increased by 117.3 percent. According to a bulletin published by the Ministry of Finance on Wednesday, by the end of Chaitra in the current fiscal year 2024/25, Nepal had received foreign aid commitments totaling NPR 221 billion. In the same period last year, the commitment was NPR 102 billion. Such commitments are generally categorized as foreign loans and grants. Of the current year’s total, 74.3 percent consists of loans and 25.7 percent of grants.

Nepal Proposes Labor Agreements with 13 New European Countries: The government is preparing to sign labor agreements with 13 new European countries. This move aligns with the national policy of identifying attractive foreign employment destinations. According to Minister for Labor, Employment, and Social Security Sharatsingh Bhandari, consultancy and interest groups are currently exploiting Nepalis seeking jobs in destinations like Japan and Europe. The government has initiated official processes to legally send workers to those countries.

Only 46% of Development Budget Spent as Fiscal Year Nears End: With the fiscal year 2024/25 nearing its end, less than half of the development budget has been spent. According to the Financial Comptroller General Office under the Ministry of Finance, of the NPR 352 billion allocated for capital expenditure, only NPR 164 billion was spent as of July 2 (Wednesday). This amounts to just 46.59% of the allocated budget — lower than last year, when 48.57% of the capital budget was spent by the same date in FY 2023/24.

Bank Loan Recovery Improves in Current Fiscal Year Amid Better Cash Flow: Loan recovery by banks is showing improvement compared to previous years, with non-performing loans (NPLs) being collected more effectively as borrowers’ cash flow improves. The economic downturn caused by the COVID-19 pandemic had earlier hampered banks’ ability to recover loans, leading to a rise in bad loans. Additionally, banks had to allocate a larger portion of their income to cover loan loss provisions, preventing them from distributing dividends to shareholders. Bankers say the current fiscal year shows promising signs of recovery after several challenging years for the banking sector.

Chinese Embassy Requests Currency Exchange for Excess Nepali Rupees in China: As Nepali currency has started piling up in Chinese territories, the Chinese Embassy has requested the Nepal Rastra Bank to facilitate currency exchange. “The Chinese ambassador said Nepali currency has been accumulating in China and requested for exchange facilities,” informed an official, “We advised him to discuss the matter with the central bank.” The Nepal Rastra Bank has also confirmed that such a request was made by the Chinese Embassy.

Vehicle Importers and Assemblers to Face Minimum Requirements Under New Guidelines: Those involved in importing, producing, and assembling vehicles will now be subject to minimum requirements. Aiming to bring significant changes in the quality, safety, and environmental impact of vehicles on Nepalese roads, the Department of Transport Management has finalized the Vehicle Import, Production, and Assembly Guidelines 2025. This guideline primarily stipulates that vehicles brought into Nepal must comply with prescribed international standards, must have internationally recognized quality certification, and the importer must possess necessary spare parts and technical manpower for vehicle maintenance.

Second Batch of Caregiver Contracts Issued for Israel’s Long-Term Care Centers: The second batch of caregiver employment contracts for long-term care centers in Israel has arrived. The Department of Foreign Employment said that as fear of war in Israel has subsided, contract letters for 66 selected candidates who had previously been chosen to work as caregivers have been received. The department has informed those who received contract letters in the second phase to be present at the department on July 4 for visa processing.

India’s SJVN Signs Deal to Sell Arun III Power to Uttar Pradesh: SJVN, an Indian government-owned company, has signed a deal to sell electricity generated from Nepal’s Arun III project to Uttar Pradesh. According to Indian media, SJVN has signed a power purchase agreement with Uttar Pradesh Power Corporation Limited (UPPCL). However, the company has not disclosed further details about the agreement, according to PTI. The under-construction Arun III hydropower project is expected to generate 900 megawatts of electricity.

Urban Ministry Forced to Include Fragmented Projects Under Political Pressure: As the time came to recommend the budget for the upcoming fiscal year 2025/26, pressure from lawmakers and provincial and local levels to include their projects forced the Ministry of Urban Development to incorporate fragmented projects. The ministry explained that due to such pressure, it had to allocate budgets in thousands and lakhs to complete some ongoing projects. Despite the Cabinet decision and the Finance Minister’s commitment not to include projects below NPR 30 million, the urban ministry included 4,000 projects below that threshold in next year’s budget.

First Helicopter Set for Import via Tatopani Customs Point: A helicopter is being imported for the first time through the Tatopani customs point. The helicopter was brought in by Mountain Helicopters Company, which purchased it from China. Chief Customs Officer Rajendra Prasad Chudal of the Tatopani Customs Office informed that a helicopter has arrived for customs clearance. “The helicopter has arrived, but we have not yet completed customs clearance. It is taking time to complete all necessary procedures. Once all procedures are completed, we will give clearance,” he said.

Tourist Arrivals Decline Slightly Even During Peak Spring Season: Even during spring, considered the best season for tourism in Nepal, international tourist arrivals remained lower than expected. In the first six months of 2025, 577,689 foreign tourists visited Nepal. According to data from the Nepal Tourism Board, 76,425 tourists arrived in June alone. However, this figure is 0.9 percent lower than in the same period of 2024, when 583,016 tourists had visited.

Invert Construction of Siddhababa Tunnel Completed: The invert construction of the Siddhababa Tunnel—one of Nepal’s national pride projects—has been completed, according to Engineer Sabita Gyawali of the Tunnel Project Office. The invert work on the 1,089-meter-long main tunnel was finalized on Wednesday. “We are now progressing with the lining phase. So far, 834 meters of lining work has been completed,” said Engineer Gyawali. The Siddhababa Tunnel, situated in Tinau Rural Municipality-3 of Palpa district along the Siddhartha Highway, has recorded 56.3 percent physical progress and 50.24 percent financial progress. The project has accelerated significantly since achieving its tunnel breakthrough.

 Road Expansion Work Progresses Rapidly on Nagdhunga–Naubise Section: The expansion of the 12.26-kilometer road from Nagdhunga Tunnel to Naubise is underway, with physical progress reaching nearly 85 percent, according to Madhav Paudel, Information Officer for the Eastern Section of the project. Paudel said the first layer of asphalt paving has been completed on all sections of this road expansion project. Approximately half of the second layer of asphalt has also been finished. Work is ongoing with the aim to complete the second layer before the rainy season begins, weather permitting. The project officials noted that the third layer of asphalt will only commence after the monsoon ends.

Bagmati Province Offers Full Tax Amnesty for Old Vehicle Dues: The Bagmati Province Government has introduced a special tax amnesty program for vehicle owners with unpaid taxes. In the budget statement on June 15 for the upcoming fiscal year, Minister for Internal Affairs and Planning Kundan Raj Kafle announced that if taxes for the past three years are paid, 100% exemption will be granted for all previous vehicle taxes, fees, and penalties. The provincial government hopes this scheme will improve the tax system and help in managing old vehicles.

Lack of Plant Quarantine at Madar Customs Forces Traders to Travel: Due to the unavailability of plant quarantine services at Madar Customs Office in Siraha, traders dealing in import and export of agricultural goods are forced to go to Biratnagar or Jaleshwar. Although the Ministry of Agriculture and Livestock Development and its subordinate departments have repeatedly highlighted the need for a plant quarantine laboratory, it has yet to materialize. In 2021, a decision was made to establish plant quarantine services at Siraha, Maheshpur, and Suthouli customs offices to inspect and test agricultural goods and issue clearance permits.

Yak Breeding Center to be Established in Jumla: A Chauri (yak) breeding center is to be established in Maurilek, Ward No. 1 of Guthichaur Rural Municipality, Jumla. The Chotra village, which is the region with the highest number of Chauri in Jumla, will be further strengthened with additional yaks to develop it into a source center. The Jumla District Veterinary Hospital and Livestock Services Office, with assistance from the provincial government, has handed over 40 yaks to a Himalayan Hilsa Chauri Pocket Group. According to Jumla’s chief veterinary officer Gyanendra Budhathapa, the yaks were handed over to the group’s chairperson Til Bahadur Mahatara.

Construction of Dodhara Chandani Dry Port Progresses After Tree Clearance: The construction process of the long-discussed Dodhara Chandani Dry Port in Kanchanpur has advanced. The Nepal Intermodal Transport Development Committee said that tree cutting at the construction site has been completed. The committee stated that NPR 150 million was transferred to Shuklaphanta National Park for tree clearance. Nepal and India signed an agreement on June 1, 2023, to construct the dry port with India’s assistance. Within two years of the agreement, Nepal completed all necessary preparatory work and moved the project forward.

Sanghai Family-Owned Companies Record NPR 3.68 billion in Trade: Two companies operated by the Sanghai family recorded trade worth more than NPR 3.68 billion in the previous fiscal year. In 2024, Triveni Spinning Mills recorded trade worth NPR 2.43 billion, while Triveni Dal & Oil Industries recorded NPR 1.25 billion. In comparison, Triveni Spinning Mills had traded NPR 2.38 billion in 2023.

Swastik Microfinance IPO to Open from Asar 27 for Migrant Workers: The IPO (Initial Public Offering) of Swastik Microfinance will open from July 11. In the first phase, the company is issuing shares for Nepali workers currently employed abroad. The company plans to issue 23,100 shares for those working abroad. After the allotment for migrant workers, the company will issue 195,195 ordinary shares to the general public.

Ashok Steel Sees 46% Drop in Trade Volume: Ashok Steel Industries witnessed a 46% decline in trade volume in the last fiscal year compared to 2023. The company recorded NPR 3.58 billion in trade in 2024, down from NPR 6.66 billion in 2023, and NPR 6.88 billion in 2022.

Gold Price in Nepali Market Rises to Rs. 192,100 per Tola: On Thursday, the price of gold in the Nepali market reached Rs. 192,100 per tola. This marks an increase of Rs. 400 compared to the previous day. According to the Federation of Nepal Gold and Silver Traders Association, the price of gold on Wednesday was Rs. 191,700 per tola. Similarly, the price of silver has also risen. The price of silver was Rs. 2,145 per tola on Wednesday and increased to Rs. 2,170 per tola on Thursday, the Federation reported.