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.

NEPSE Drops 35.99 Points; All Sectors Lose Amid Gen Z Protest

The Nepal Stock Exchange (NEPSE) fell below 2,700 on Monday, dropping 35.99 points to close at 2,672.  Violent Gen Z protests and police action in Kathmandu impacted investor confidence. Trading volume rose to Rs 5.23 billion from Rs 4.40 billion the previous day. Among listed companies, 22 gained while 229 declined. All sectors posted losses, including Banking (-1.12%), Hydropower (-1.38%), and Trading (-3.31%).

Nepal Stock Exchange Directs Timely Financial Reporting

Nepal Stock Exchange (NEPSE) has instructed listed companies to submit financial statements and other important information according to specified formats and deadlines. A circular issued Sunday mandates companies to submit audited annual financial statements within five months of the fiscal year-end and quarterly reports, including earnings per share and price-to-earnings ratio, within 30 days of quarter-end.

Government to Raise RS 8.50 Billion Through 91-Day Treasury Bills

The government is set to collect RS 8.50 billion in deposits on Monday under the 91-day Treasury Bills scheme. For the current fiscal year, the government has set a target of raising RS 3.62 billion through internal borrowing. Of this, RS 1.30 billion is planned to be collected through Treasury Bills. With banks holding excess investable funds, the government has been increasing internal debt and issuing long-term Treasury Bills.

Commercial Banks Increase Investment in Monetary Instruments

As interest rates fall and costs increase, commercial banks have begun investing more in monetary instruments. Apart from Nepal Rastra Bank, the government’s issued monetary instruments are also seeing increased investment. According to the Public Debt Management Office, investors participated in bidding with eight times the required amount. The office issued two Treasury Bills on September 1: a 91-day and a 364-day Treasury Bill.

Foreign Investment in Nepal Concentrated in Three Countries

According to Nepal Rastra Bank’s 2024 survey, Nepal has received foreign investment from 60 countries. The survey indicates that just three countries account for more than 50% of the total foreign investment. According to the central bank, as of the survey period, Nepal had a total foreign investment of RS 332.97 billion. Of this, RS 168.61 billion was in paid-up capital, RS 122.02 billion in reserves, and RS 48.32 billion as loans.

Foreign Investment in Nepal Focused on Three Key Sectors

Foreign investors prefer three main sectors in Nepal, according to a survey by Nepal Rastra Bank. Investment was primarily concentrated in electricity, productive industries, and financial services. Electricity received RS 9.833 billion in investment, representing approximately 29.5% of the total RS 33.2 billion currently invested. Productive industries followed with RS 9.756 billion (29.3%) and the financial sector with RS 8.139 billion (24.4%).

Weighted Average Loan Interest Rate Falls to 13-Year Low in Nepal

The weighted average interest rate that the general public pays on loans from banks and financial institutions stood at 7.85% in Asar (mid-July) this year, the lowest in the past 13 years. Nepal Rastra Bank began calculating the weighted average deposit and loan interest rates from 2012 A.D. The average loan interest rate in Asar this year is the lowest since then. Experts claim that this is the lowest interest rate to date.

Cost of National Pride Projects Increasing Due to Government Inaction

Government agencies have failed to act promptly in implementing national pride projects, adding a heavy financial burden to the state. Recent data shows that aside from newly added projects in the past year, the cost of all existing projects has doubled or increased even further. According to the National Planning Commission, there are currently 27 national pride projects in the country. Among these, two projects were added to the national pride category in the fiscal year 2024/25.

Social Media Ban Fails to Halt Foreign Currency Inflows

Despite the government’s ban on social media, Nepal received foreign currency worth RS 3.53 billion from these platforms during the fiscal year 2024/25. Since last Thursday, 26 social media platforms, including YouTube, Facebook, Instagram, and WhatsApp, have been deactivated because they are not registered in Nepal. However, five registered platforms, including TikTok, Viber, Nimbuzz, Bitk, and PopoLive, continue to operate.

Internet Service Providers Concerned Over Social Media Ban

Following the government’s decision to block social media platforms from Thursday, internet service providers have expressed concern. Since 80% of internet data consumption is used to run social media, the ban affected 26 unregistered platforms, including Facebook, WhatsApp, and YouTube. The largest share of the banned platforms includes Facebook, WhatsApp, and YouTube. If these services remain blocked, customer internet usage will likely decrease, reducing telecom data consumption by an estimated 80%.

Korala Border in Mustang Fully Operational

The Korala border in Mustang, bordering the Tibet Autonomous Region of northern China, is now fully operational. The Mustang Customs Office stated that while the border was open year-round only to Upper Mustang residents from November 13, 2023, it has now been fully opened for all traffic starting Sunday. To expand this border as a commercial trade route, the Customs Department has appointed Ramesh Khadka as the head of the Mustang Customs Office.

Environmental Impact Assessment for Surkhet Ramghat Airport Released

The Environmental Impact Assessment (EIA) report for Surkhet Bheriganga Ramghat Airport, located in Bheriganga Municipality, Surkhet, has been released. This airport is being constructed as an alternative airport for the Karnali Province capital, Surkhet. The report was made public at a hearing session. According to the report, the airport will be built across 218.26 hectares in Bheriganga Municipality wards 9, 10, and 11.

Private Sector Protests DDC’s Dairy Plant Plan in Pokhara

After the Dairy Development Corporation (DDC) began preparing to open a milk processing and packaging plant in Pokhara, private sector associations expressed opposition. The umbrella organization of the private sector, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Pokhara Chamber of Commerce and Industry, and the Nepal Dairy Industry Association voiced dissatisfaction with DDC’s plans.

Cardamom Production Expected to Rise by 25% This Year

After several years of continuous decline, cardamom production is expected to increase this year. Nirmal Bhattarai, former president of the Nepal Cardamom Business Association, stated that cardamom production in Nepal last year was 4,500 metric tons, and this year it is expected to reach approximately 6,000 metric tons, an increase of about 25%. Typically, the highest volumes of cardamom reach the market in the months of September and October.

Pashupati Iron & Steel Reports Growth in Trade

Pashupati Iron & Steel, invested in by industrialist Pashupati Murarka, has seen growth in business. During the nine months of the last fiscal year, the company reported trade worth RS 2.362 billion. Total revenue was 13% higher than the same period in the previous fiscal year. In 2024, Pashupati Iron & Steel recorded trade worth RS 2.787 billion.

City Hotel Rights Shares Application Opens Monday

Applications for City Hotel’s rights shares opened Monday. The company has issued rights shares at a ratio of 1:0.8. Out of the current paid-up capital of RS 167.4 million, 80% or RS 133 million will be raised through the rights issue, the company stated. Shareholders can apply for the rights issue until August 11, according to sales manager Prabhu Capital, with applications accepted until September 28.

Gold Prices Drop Slightly After Reaching High on Sunday

The price of gold, which reached a high on Sunday, fell slightly on Monday. The Federation of Nepal Gold and Silver Dealers Association reported that gold prices fell by RS 400 per tola compared to the previous day. On Sunday, gold was traded at RS 212,000 per tola, while on Monday it dropped to RS 211,600. Similarly, the price of silver decreased by RS 25 per tola.