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 Rises by 26.53 Points on Sunday: The NEPSE index increased by 26.53 points (1.02 percent) on Sunday, the first trading day of the week. Following this rise, the NEPSE index stood at 2622. Among the listed companies, 185 saw their prices increase, while 63 experienced a decline. A total of NPR 712 million worth of shares were traded. The banking sector led the gains with a 2.00 percent increase. The strong performance of this key sector contributed significantly to the overall rise in the NEPSE index.

Nepal Rastra Bank Withdraws Rs 30 billion in Deposits: Nepal Rastra Bank (NRB) withdrew Rs 30 billion in excess liquidity through a deposit collection auction on Sunday. This move came in response to surplus liquidity in the banking system. The auction was conducted via the NRB’s online platform at 3 PM, with interest rates determined through competitive bidding. Repayment of principal and interest was done today.

Rice Seed Imports Surge by 31% in a Year: Nepal’s import of rice seeds surged by nearly 31% within a year. According to the Department of Customs, Nepal imported rice seeds worth Rs 1.16 billion in the first 11 months of the fiscal year 2024/25 (up to mid-June). During the same period last year, the import stood at Rs 886.5 million. Experts attribute this rise to growing farmer preference for hybrid over native varieties, increasing dependency on foreign seeds.

Ride-Sharing to Be Legalized in Upcoming Transport Law: The government is set to bring ride-sharing under legal purview through the upcoming Transport and Vehicle Act. According to Keshav Kumar Sharma, Secretary of the Ministry of Physical Infrastructure and Transport, the new federal law will allow implementation of ride-sharing based on legal provisions made by provincial governments.

Cement and Steel Prices Reduced: Industries have slashed prices of cement and steel bars. According to the Department of Commerce, Supply and Consumer Protection, cement prices have dropped by Rs 50 to Rs 100 per sack, while steel prices have decreased by up to Rs 5 per kilogram. Director General Kumar Prasad Dahal said reduced demand and easing of power cuts have lowered production costs.

Nepal Advocates Worker Health Agenda at WHO: Health Minister Pradeep Paudel is advancing Nepal’s proposal on worker health at the WHO. During a UN regional meeting in Bangkok, he discussed the agenda with WHO Southeast Asia Regional Director Dr. Saima Wazed, aiming to build global consensus ahead of the next World Health Assembly.

Nepal’s Free Visa and Ticket Policy Faces Partial Implementation in Gulf Labor Market: Nepal has maintained a policy of providing free tickets and visas for migrant workers for over a decade, with workers heading to the Gulf required to pay only NPR 10,000 as service fees. Countries like the UAE and Malaysia follow a zero-cost fee policy for Nepali labor migrants. However, despite different models, the 100% employer-pay (B2B) system is fully implemented by only a few employers, primarily five-star hotels in the Gulf, large companies, and Malaysian manufacturing firms.

Over Two Dozen Insurance Companies Penalized: Nepal Insurance Authority has penalized more than 25 insurance companies for violating regulations, submitting false data, and ignoring guidelines. As per the Insurance Act 2079, sanctions range from warnings to license revocations.

Agricultural Loans Expanding Rapidly but Contradictions Remain: Commercial banks have disbursed Rs 643.84 billion in concessional agriculture loans over the past decade. While investment in agriculture is vital, conflicting data—such as rising imports and limited productivity—reveal systemic issues in effective implementation.

Paddy Covers 80% of Nepal’s Staple Crop Consumption: Rice accounts for about 80% of Nepal’s staple crop consumption. Despite efforts to boost production, the country imported nearly Rs 39 billion worth of rice and paddy in 11 months of the current fiscal year. Annually, Nepal faces a deficit of around 1 million metric tons, requiring imports of 1.2 to 1.5 million metric tons.

Gold and Silver Trade Halted Amid Protest: Jewelry businesses remain shut across Kathmandu Valley, including major hubs like New Road, due to ongoing protests. The Federation of Nepal Gold and Silver Dealers Association has also delayed pricing announcements in protest. Federation president Arjun Rasaili stated that business will remain closed until their demands are met.

Hearing on Governor Poudel’s Writ Deferred Again: The writ petition against NRB Governor Dr. Biswo Nath Poudel was again deferred. The case, listed as item 11 in the bench of Justices Sapana Pradhan Malla and Til Prasad Shrestha, could not proceed as Justice Shrestha recused himself. The case was earlier postponed on Jestha 20 (June 3) due to time constraints.

Loan Defaulters of 19 Cooperatives Given Final Notice: The Problematic Cooperatives Management Committee has issued a final notice to loan defaulters from 19 cooperatives. The suspended board members, managers, and borrowers have until Asar 32 (July 16) to clear their dues. Failure to comply will result in debt recovery including principal, interest, and penalties starting from Shrawan 1 (July 17).

Luxury Tourism Booming in Meghauli: Meghauli in Chitwan is witnessing high-end tourism growth. Siddhartha Hospitality has launched a luxury wildlife resort, ‘Siddhartha Wildlife Retreat’, previously known as Sarang Wildlife Sanctuary. CEO Krishna Neupane said this reflects rising interest among affluent travelers.

No Fertilizer Shortage for Paddy Cultivation, Claims Agriculture Ministry: Amid reports of fertilizer shortages, the Ministry of Agriculture clarified that over 60,000 tons of chemical fertilizers are in stock for paddy farming. Additionally, 86,000 tons of urea and 30,000 tons of DAP are in the pipeline, ensuring sufficient supply for the current season.

Bharatpur Mayor Proposes Chinese Support in Waste Management: Bharatpur Mayor Renu Dahal has proposed support from China and its sister city, Shigatse, for waste management. Welcoming the Shigatse mayoral delegation, she highlighted China’s continued support in Nepal’s development and infrastructure sectors.

SDG Global Imports Records Rs 1.53 billion Trade in 2024: SDG Global Imports reported a trade turnover of Rs 1.53 billion in 2024. The company, established in 2017, imports and distributes food items like oil, rice, sugar, pulses, and spices. In the current fiscal year, it has already traded Rs 1.48 billion worth of goods in 10 months.

Mabilung Energy IPO Opens on July 6: Mabilung Energy will open its IPO subscription on Asar 22 (July 6), initially targeting migrant workers and local residents. The company plans to issue 1.89 million shares at Rs 100 per unit, representing 48.99% of its Rs 385.8 million capital.

Mahalaxmi Bikas Bank Launches Virtual Credit Card: Mahalaxmi Bikas Bank, in partnership with Fonepay, has launched a fully digital virtual credit card. Customers can now use the “Mahalaxmi Smart Sathi” mobile banking app to make secure payments through Fonepay QR merchants and for online purchases. The card offers the same benefits as physical credit cards, including a 45-day interest-free period and flexible installment options.

IME Group Expands into Manufacturing Sector: IME Group, known for its contributions to remittance, banking, and hospitality, has ventured into the manufacturing sector. The group recently started operations at Nepal Pulp and Paper Industry in Mahottari with an investment of Rs 2 billion.

Gold Price Drops Again Today, Silver Also Declines: Gold prices continued their downward trend today, with silver prices also decreasing. According to the Federation of Nepal Gold and Silver Dealers Association, the price of gold fell by an additional Rs 1,000 per tola (11.66 grams) on Sunday, following a sharp drop of Rs 2,900 per tola last Friday. As of today, the price of gold stands at Rs 188,400 per tola, down from Rs 189,400 per tola last Friday. Similarly, the price of silver fell by Rs 25 on Sunday. Silver is being traded at Rs 2,140 per tola.