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 Jumps 4.16% This Week, Hydropower Stocks Dominate: Nepal’s stock market climbed 108 points this week, closing at 2,703—up from last week’s 2,595. The index gained on all five trading days, with the highest single-day rise on Wednesday (34.42 points). Despite concerns over fiscal year-end loan and interest payments, the market showed strong momentum. Market turnover grew steadily throughout the week, ranging from Rs 6.38 billion to Rs 9.74 billion. The rally, beginning mid-Asar, defied the usual seasonal dip and reflected rising investor confidence. Hydropower companies dominated trading. Sahas Urja topped with Rs 1.82 billion in turnover, followed by NRN Infrastructure, Butwal Power, Radhi Bidyut, and others
Deadline to Raise Capital Extended for Securities Broker Companies: The deadline for securities broker companies in Nepal to meet their paid-up capital requirements is set to be extended by nine months. The previous deadline, which ends in mid-July, 2025 will now be pushed to mid-April, 2026. The Securities Board of Nepal (SEBON) is amending its regulations to formalize the extension and has submitted the proposal to the Ministry of Finance for approval. The delay in the issuance of the merger directive for broker companies led to the decision to extend the capital deadline.
Finance Minister Urges Malaysian Investors to Invest in Nepal’s Infrastructure and Tourism: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has called on Malaysian investors to invest in Nepal’s infrastructure and tourism sectors. Addressing a delegation from the Malaysia-Nepal Business Council, he highlighted the country’s investment-friendly policies and the government’s readiness to facilitate private sector investment.
Minister Pandey Says Aviation Authority Must Be Split for Better Governance: Minister for Culture, Tourism and Civil Aviation, Badri Prasad Pandey, said the Civil Aviation Authority must be split because one institution cannot both operate and regulate the aviation sector effectively. Speaking at a parliamentary committee on Friday, Pandey stressed the need for a new body to improve regulatory oversight.
Bad Loans of Microfinance Institutions Rise to 7.25%: As of mid-April 2025, the average non-performing loans (NPLs) of microfinance institutions in Nepal reached 7.25%, up from 6.17% in the previous fiscal year. The figure marks a 1.08 percentage point increase in bad loans within a span of nine months. According to the third-quarter off-site supervision report published by Nepal Rastra Bank, the total amount of bad loans in the microfinance sector now stands at Rs 31.53 billion.
Nepal Oil Corporation Builds Fuel Depot at Pokhara International Airport: Nepal Oil Corporation (NOC) has constructed a fuel depot at Pokhara International Airport, marking a historic milestone. For the first time in its 55-year history, NOC completed the project entirely using domestic consultants, contractors, and internal funding, according to project chief engineer Pradeep Yadav. The facility includes three storage tanks, each with a capacity of 1,200 kiloliters, providing a total storage capacity of 3,600 kiloliters. The announcement was made at a press conference held on Thursday at the airport’s fuel depot premises.
MPs Demand Publication of Business Loan Details in Parliament: In a discussion on amendments to the Bank and Financial Institutions Act (BAFIA), lawmakers have demanded a white paper detailing which business groups have taken how much in loans. They also raised the issue of separating bankers from businesspersons. Recently, the Nepal Rastra Bank governor revealed that 373 individuals hold promoter shares in banks and financial institutions.
Supreme Court Dismisses Writ Against Auditor Selection for Bank Loan Reviews: The Supreme Court has dismissed a writ petition challenging the selection process of auditors to review the loan portfolios of Nepal’s top 10 commercial banks. The loan portfolio review is part of the Extended Credit Facility (ECF) agreement Nepal signed with the IMF. The process was delayed earlier when only one audit firm qualified and quoted a high price.
Himalayan Reinsurance to Buy Shares of Habib Bank in Himalayan Bank: Himalayan Reinsurance Company is acquiring promoter shares held by Pakistan’s Habib Bank in Himalayan Bank. Chairman Shekhar Golchha confirmed the purchase, citing it as part of the company’s strategy to diversify investments and improve returns amid declining interest rates on fixed deposits.
Distressed Cooperatives Given Deadline to Recover Loans by July 16: The Distressed Cooperative Management Committee has given 19 troubled cooperatives until July 16 to recover defaulted loans. If dues are not cleared within this deadline, principal, interest, and penalties will be calculated and recovered starting from July 17.
IPPAN to Hold Power Summit 2025 in October: The Independent Power Producers’ Association Nepal (IPPAN) will hold the 9th Power Summit 2025 on October 17–18. The event will focus on achieving the 28,500 MW target set by the government’s Energy Development Roadmap 2081. Local and international investors, experts, and policymakers will participate in discussions on electricity production, transmission, and distribution.
257 Local Governments Yet to Present Budget, Government System Shows: Despite a legal requirement to present budgets by June 24 and pass them by July 16, 257 local governments have yet to upload their policies and budgets on the federal system. Disputes between mayors and executives, as well as political and administrative conflicts, have been cited as key reasons for the delay.
Gold and Silver Traders Protest VAT, Luxury Taxes: The Nepal Gold and Silver Dealers and Artisans Struggle Committee held a protest rally on Wednesday, demanding the immediate removal of the two percent luxury tax on gold. Protestors also called for the cancellation of the 13 percent value-added tax (VAT) imposed on diamonds, precious stones, and jewelry products. They argued that such taxation is harming both traders and consumers. The demonstration, which included goldsmiths, artisans, traders, and consumers, began at Maitighar and marched toward Baneshwor.
Rs 56.2 million Concrete Bridge Constructed Over Chirkhuwakhola: A 20.60-meter concrete bridge has been constructed over Chirkhuwakhola at a cost of Rs 56.2 million. Built through the Infrastructure Development Office, the bridge benefits residents of Shadananda Municipality and Salpasilichho Rural Municipality. Funding was provided by the Koshi Provincial Government.
Champadevi Cable Car to Be Built in Kirtipur: Champadevi Eco-Friendly Company has proposed to build a cable car from Kirtipur Municipality Ward 4 to Dakshinkali Municipality Ward 1. The proposed cable car line will span 2.075 km, and an environmental impact assessment report has already been submitted to the Ministry of Forests and Environment.
Bandipur Cable Car Gets IPO Approval from Securities Board: The Securities Board of Nepal has approved Bandipur Cable Car and Tourism Company to issue an IPO. The company will issue 5.86 million shares at Rs 100 each, amounting to Rs 586 million. Credit rating agency CARE Ratings Nepal has assigned it a ‘CARE NP BB’ rating, indicating moderate risk in fulfilling financial obligations on time.
Kishor Jung Karki Appointed Chairman of Prabhu Bank: Kishor Jung Karki has been appointed Chairman of Prabhu Bank. The bank’s board of directors made the decision during a meeting on Thursday. Ramesh Raj Aryal was also appointed as an independent director in the same meeting.
Siddhartha Bank to Issue SBL Debenture 2091 from July 13: Siddhartha Bank Limited will issue a bond titled ‘SBL Debenture 2091’ from Asar 29 (July 13). This 10-year bond issuance amounts to Rs 2.5 billion, with Rs 1 billion allocated for mutual funds and the general public. Investors must apply for a minimum of 25 units. The bond offers an annual interest rate of 7.25%, which is higher than the prevailing interest rate of around 6% on personal fixed deposits offered by commercial banks.
Nepal Insurance Rights Share Opening from July 22: Nepal Insurance Company is set to issue rights shares starting from Shrawan 6 (July 22). The company plans to issue 6,576,967 units of rights shares, which amounts to 34.783% of the current paid-up capital. Shareholders can apply for 3.4783 new shares for every 10 shares held, at a face value of Rs 100 per share. Only those who were shareholders before Jestha 30 (June 13) will be eligible to apply for the rights shares.
Stall Allocation Completed for NADA Auto Show 2025: The NADA Automobiles Association of Nepal has completed stall allocation for the NADA Auto Show 2025, scheduled to be held at Bhrikutimandap, Kathmandu, from August 19 to 24 (Bhadra 3–8). The event will feature stalls for four-wheelers, two-wheelers, light commercial vehicles, auto components, and special pavilions like “Made in Nepal,” vintage cars, and auto policy dialogues.
Global Agro Records Rs 2.86 Billion in Sales in First 9 Months of Current FY: Global Agro Products, which markets brands like Global and others, recorded business worth Rs 2.86 billion in the first nine months of the current fiscal year. Its previous year’s revenues were Rs 3.4 billion in 2024, Rs 2.82 billion in 2023, Rs 2.44 billion in 2022, and Rs 2.56 billion in 2021.
