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 Index Rises for Sixth Day, Turnover Hits Rs 9.5 billion on Sunday: The Nepal Stock Exchange (NEPSE) rose by 2.40 points on Sunday, closing at 2,706.36, marking its sixth consecutive day of gains. Despite the uptick, market sentiment was mixed, with 87 stocks gaining and 162 declining. Total turnover stood at Rs 9.5 billion, slightly down from the previous session’s Rs 9.64 billion, with 27.1 million shares traded. Nepal Finance led the gainers, surging 10 percent, followed by Guardian Micro Life Insurance (7.36%), Rapti Hydro (5.70%), Upper Hewakhola Hydropower (5.18%), and Janaki Finance (4.91%). These gains boosted the Finance and Others sectors by 2.49% and 3.06%, respectively, aided by strong performances from Nepal Reinsurance and Himalayan Reinsurance.
NRB Withdraw Rs 45 billion Amid Excess Market Liquidity: Amid rising liquidity, the Nepal Rastra Bank (NRB) has withdrawn Rs 45 billion from the banking system on Sunday. The central bank is using the deposit collection tool through auction to absorb excess liquidity. Currently, total deposits in the banking sector have exceeded Rs 7 trillion. To manage excessive liquidity and stabilize interest rates in the financial system, NRB has been withdrawing liquidity using instruments such as the deposit collection tool and the Standing Deposit Facility.
NEPSE’s Rise to 3000 Points Crosses One-Year Mark: The Nepal Stock Exchange (NEPSE) index reached the 3,000-mark exactly one year ago, rising from 2,037 points to 3,000.81 within 33 trading days. On June 30, 2024, the index stood at 2,037. By August 15, it had climbed by 963 points to 3,000.81, marking the highest level since 2021. Although the index reached 3,199.03 on August 18, 2078, that record still remains unbroken.
Governor Says Investment Opportunities Abound Amid Ample Deposits: Governor of Nepal Rastra Bank, Biswo Nath Poudel, has stated that there is currently enough capital for investment and the time is right for utilizing investment opportunities. Addressing the ‘Pre-Monetary Policy Discussion’ organized by the Society of Economic Journalists (SEJON), he said that deposits in banks are high and foreign currency reserves are also sufficient, which allows for sustainable and balanced development through investments. Mentioning that banks currently hold Rs 520 billion in idle funds at NRB, the Governor emphasized that financial policy should now take the lead and identify other investment sectors, similar to how energy has been prioritized in the past.
Agriculture Minister Proposes Separate Institution for Fertilizer Procurement: Agriculture Minister Ramnath Adhikari has said that a separate institution should be established for fertilizer procurement. He stated that linking fertilizer procurement to the Ministry has disrupted other administrative functions. “The process of fertilizer procurement and its distribution system is being blamed on the minister and the ministry,” he said while speaking at the Industry, Commerce, Labor, and Consumer Welfare Committee. He added that despite best efforts, fertilizer has not been arriving on time, which has remained a persistent issue.
Life Insurance Companies Reduce Claim Payouts This Fiscal Year: Life insurance companies in Nepal have reduced their claim payouts to policyholders in the current fiscal year. Compared to the previous year, claim payments have declined by 2.45 percent as of mid-June. By mid-June last fiscal year, insurance companies had settled around 268,000 claims, paying out a total of NPR 53.96 billion. However, during the same period this fiscal year, the number of claims dropped to approximately 238,000, with total payouts amounting to NPR 52.64 billion.
Industrialists Reap Double Benefits from Household LPG Subsidies: Industrialists have been found to be exploiting subsidies and tax exemptions intended for household LPG consumers. Nepal Oil Corporation spends Rs 7.8 billion annually to provide subsidies for cooking gas. However, business operators have been found to claim both the subsidy and the VAT refund, effectively enjoying dual benefits. “This is an injustice to the general public. The government should provide subsidies to consumers rather than industrialists,” said Shiva Prasad Ghimire, President of the Nepal LP Gas Industry Association.
Gold and Silver Traders Announce Nationwide Protest Against Unreasonable Tax: Gold and silver traders, protesting against what they describe as an impractical tax on jewelry and gems, have announced a joint protest program from Asar 22 to 27 (July 6 to 11). The Federation of Nepal Gold and Silver Dealers’ Association and the Nepal Gem and Jewelry Federation have made public a schedule of nationwide joint protests. It has been informed that shops and businesses related to the trade will remain closed during the protest period. The traders have said that the movement will continue until the so-called “luxury tax” is repealed.
NOC’s Central Headquarters Construction Reaches Final Phase: The central building of Nepal Oil Corporation (NOC), located in Babarmahal, is in its final stages of construction. The modern corporate building has been built at a cost of approximately Rs 910 million, and 98 percent of the work is now complete. Although the construction was scheduled to be completed by mid-July, the corporation has stated that it may take about two more months for the building to become fully operational due to testing and relocation procedures. Out of the 14-storey modern building, only 2 percent of the work remains.
British Envoy Urges Simplified Profit Repatriation for Tech Investors: As interest in Nepal’s tech sector grows, diplomats are calling for a smoother profit repatriation process for foreign investors. At a program organized by the Nepali Embassy in the UK, British Ambassador to Nepal Rob Fenn highlighted the need for an easy profit repatriation process. A ‘Nepal–UK Digital Working Group’ will be formed to facilitate these processes. During the first edition of the ‘Nepal–UK Tech Forum’, Fenn said Nepal’s tech sector could rapidly gain global recognition.
Large Cardamom Exports Drop Despite High Global Demand: Exports of large cardamom have decreased during the current fiscal year 2024/25. Despite high demand in the international market, the decline in domestic production has led to reduced exports. According to the Customs Department’s data, Nepal exported 3,995,745 kilograms of cardamom worth Rs 7.1984 billion in the first 11 months of the fiscal year. During the same period last year, Nepal had exported 4,719,945 kilograms of cardamom worth Rs 7.4765 billion.
Sugar and Rice Imports from India Surge Through Nepalgunj Border: After several years of decline, the import of sugar and rice from India through the Nepalgunj border has seen a massive increase. In the first 11 months of fiscal year 2024/25, Nepal imported 214,645 kilograms of sugar worth Rs 10.264 million through this border. But in the same period of the current fiscal year, sugar imports surged to 6,422,060 kilograms, worth Rs 448.891 million.
Sunsari-Morang Irrigation Project Encroached by Urban Expansion: The Sunsari–Morang Irrigation Project, which provides irrigation to 68,000 hectares of land in Sunsari and Morang districts, is gradually being encroached due to increasing urbanization. Project chief Manohar Kumar Sah said that locals are building structures arbitrarily on the service road constructed for canal maintenance and inspection, resulting in direct encroachment. Activities such as blacktopping roads on both sides of the canal, planting trees along the banks, installing electric poles, and building small bridges according to local needs are contributing to the gradual encroachment of the project.
No Separate Tea Policy in Koshi Province Despite Rs 10 billion Annual Exports: Stakeholders in Koshi Province have complained about the lack of a separate tea policy or law for the development of the region’s tea industry. More than 50,000 metric tons of green tea leaves are produced annually in the province, and tea worth over Rs 10 billion is exported to countries like India, Europe, the U.S., Germany, and Japan. Despite tea farming playing a significant role in the agricultural economy of Koshi Province, farmers continue to report that they are not getting fair prices.
Siddhababa Tunnel Completes Key Concrete Work: The Siddhababa Tunnel, under the Siddhartha Highway, has completed concrete flooring (invert) work of the main tunnel. According to the project office, 834 meters of structural lining work inside the tunnel walls has also been completed. Project Chief Krishna Raj Adhikari stated that the invert work is completed for 1,089 meters out of a total tunnel length of 1,126 meters.
Hatchery Association Bans Chick Production for a Week to Curb Cartel Practices: The Nepal Hatchery Industry Association has halted chick production to control syndicate and cartel practices in the market. In a special meeting held on Friday, the association decided to suspend broiler and colored broiler chick production and distribution for a week starting from Asar 23 to 29 (July 7 to 13). The ban applies to all producers affiliated with the association and aims to prevent syndication in the supply and pricing of chicks.
IPO Opens for Mabilung Energy’s First Phase Targeting Migrant Workers and Locals: The first phase of the Initial Public Offering (IPO) of Mabilung Energy has opened from Sunday. The IPO is targeted at Nepalis working abroad and local residents affected by the project. The company plans to issue 1,890,530 shares with a face value of Rs 100 each under the general public category. This represents 48.99 percent of its issued capital of Rs 385.825 million.
Global IME Launches New Mutual Fund ‘Samunnat Yojana 2’: A new mutual fund named ‘Samunnat Yojana 2’ has opened for public subscription under the promotion of Global IME Bank. Applications for this scheme can be submitted until July 9. If the fund is not fully subscribed within this period, the deadline will be extended until July 20. Interested investors can apply via the online MeroShare system. According to the fund manager, Global IME Capital, investors in this scheme are expected to earn an average annual return of 22.4 percent.
Bungal Hydro to Issue IPO from July 13: Bungal Hydropower is set to issue its IPO from Asar 29 (July 13). In the first phase, the company will issue shares for local residents affected by the project and Nepalis working abroad. The company has received approval to issue 2.9 million shares worth Rs 290.5 million, which is 35 percent of its Rs 830 million authorized capital.
Gold Price at Rs. 192,100 per Tola: The price of hallmark gold has surged to Rs. 192,100.25 per tola, according to the latest market rates published Sunday. The rate for 10 grams of hallmark gold now stands at Rs. 164,695.00. Meanwhile, silver continues to trade steadily, with the price reaching Rs. 2,170.09 per tola.
