KATHMANDU: Nepal’s economic landscape showed a mix of market optimism and structural challenges on July 9. The NEPSE index crossed 2,700, driven by strong gains in the banking sector and improved trading volumes, reflecting renewed investor confidence. Meanwhile, falling interest rates on commercial bank loans could further fuel market activity.
However, inflationary pressure looms as egg prices soar due to supply disruptions, and infrastructure setbacks—like the flood damage at Rasuwagadhi—threaten trade flows. Governance and regulatory actions also featured prominently: the Finance Ministry pushed NEPSE restructuring and foreign aid project readiness, the Supreme Court mandated CSR reforms, and local fiscal management issues emerged in Dharan and Rolpa.
On a positive note, increased health insurance coverage, rising tourism-linked flights to Simikot, and new hydropower and fertilizer initiatives underscore efforts to balance economic resilience with social welfare and sustainability.
NEPSE tops 2,700 on Wednesday as banking sector drives rally
The stock market surged again on Wednesday, with the NEPSE index breaking through 2,700 to close at 2,705, up 22.04 points from the previous day. Share prices of 199 companies climbed, while 49 fell. Trading volume increased to Rs 7.45 billion from Rs 6.57 billion. The banking sector led the gains with a 1.68% rise. Other sectors also advanced: development banks (+0.34%), hotels & tourism (+0.28%), hydropower (+0.54%), investment (+1.37%), life insurance (+0.24%), manufacturing & processing (+0.95%), microfinance (+0.85%), non-life insurance (+0.24%), others (+0.30%), and trading (+0.34%).
Egg prices jump by Rs 145 per crate in three months
Egg prices in Nepal have risen sharply—by as much as Rs 145 per crate over the past three months—due to a 25% drop in production caused by extreme heat. The Nepal Layers Poultry Association reports that medium-sized egg crates increased from Rs 320 to Rs 465, large eggs from Rs 450 to Rs 495, and XL eggs from Rs 470 to Rs 510.
Rs 3 billion Rasuwagadhi border point hit by flood, infrastructure wiped out
The Rasuwagadhi border crossing—built with nearly Rs 3 billion to boost trade with China—has been severely damaged by a flash flood on Tuesday morning, which destroyed the Nepal–China Friendship Bridge and customs facilities. Customs officer Rabindra Pyakurel said the site has reverted “by 10 years” in development. A detailed damage assessment is ongoing.
Finance Ministry issues readiness checklist for foreign-funded projects
The Finance Ministry has introduced the “Readiness Filter 2082,” a pre-implementation checklist for foreign-aid projects. It aims to streamline project setups, ensure quality, improve inter-agency coordination, and strengthen ownership by executing agencies.
Finance Ministry urges NEPSE restructuring following study recommendations
Roughly two months ago, the Finance Ministry instructed the Securities Board of Nepal (SEBON) to implement NEPSE reforms. Multiple reports have advocated for restructuring. The Economic Reform Commission, chaired by Rameshwor Khanal and established on Ashoj 20, 2081 BS, also recommended overhauling NEPSE to strengthen the economy. Nonetheless, action from the Finance Ministry has been primarily limited to formal directives.
Commercial bank loan interest drops below 8% for first time in years
According to Nepal Rastra Bank, the average weighted interest rate on commercial bank loans fell to 7.99% by the end of Jestha 2082—its first drop below 8% in years. A year ago, the rate was 10.15%, with a peak of 13.03% during Magh–Falgun 2079.
Supreme Court rules CSR funds must benefit poor, marginalized groups only
The Supreme Court has directed that CSR funds from banks, financial institutions, and businesses must be used exclusively for initiatives aiding the poor and marginalized—not infrastructure projects. Justices Hari Prasad Phuyal and Nripadhwaj Niraula emphasized these funds should be allocated strictly for targeted social welfare activities.
Gold and silver traders protest, demand tax removal
Gold and silver traders, accompanied by artisans, held a protest and “corner meeting” in Kathmandu on Wednesday. Organized by the Nepal Gem and Jewelry Federation and Nepal Gold & Silver Dealers’ Federation, their key demand is the removal of the 13% VAT on diamonds and precious stones, as well as the 2% luxury tax on gold.
Citizens to get Rs 200,000 in health coverage starting Shrawan 1
Health and Population Minister Pradeep Paudel announced that starting Shrawan 1, citizens enrolled in Nepal’s Health Insurance Program will have their coverage ceiling doubled to Rs 200,000, up from Rs 100,000, for eight categories of serious diseases.
Insurance authority urges fast claims processing for Rasuwagadhi hydropower
The Nepal Insurance Authority has instructed insurers to quickly submit detailed damage reports and expedite claim settlements for the Rasuwagadhi Hydropower Project, insured under Himalayan Everest Insurance, which was badly damaged by the flash flood in the Lhendhe River.
Second segment of Kathmandu ring road expressway survey completed
A Chinese technical team has finished the second-phase survey for Kathmandu’s Cross-Ring Outer Peripheral Transport Highway (CRoPTH). The 8.2 km section runs from Kalanki to Basundhara Culvert. The team, including engineers from China CCCC First Highway Consultants and Xi’an Fangzhou Engineering Consulting, arrived on Baisakh 6.
Nepal Tourism Board rushes to finalize budget before fiscal year end
The Nepal Tourism Board—unique as a public-private partnership in the tourism sector—is working to finalize its budget before the fiscal year ends on Asar 25. CEO Deepak Raj Joshi stated that the board is working diligently to meet the deadline and begin implementation by Shrawan.
Setikhola cascade hydropower project secures funding agreement
A financing deal has been signed for the construction of the 9.8 MW Setikhola Hydropower Cascade Project. The agreement was finalized between Setikhola Hydropower Limited and Nepal Infrastructure Bank Ltd (NIFRA), with Chairman Anup Acharya and CEO Krishna Bahadur Adhikari representing their respective institutions. The project will be developed along the Seti River in Pokhara-33 and Shuklagandaki-8 of Tanahun district.
Simikot flight frequency surges as China opens Kailash route via Hilsa
Flight operations to Simikot Airport have soared following China’s decision to permit Indian pilgrims to access Kailash Mansarovar via the Hilsa border in Humla. Up to 49 flights now operate daily, including fixed-wing services from Nepalgunj to Simikot and helicopter flights from Simikot to Hilsa. According to Civil Aviation Authority official Mahendra Singh, this is the highest flight volume since the COVID-19 pandemic.
Salyan opens organic fertilizer centers to promote eco-friendly farming
Two new organic fertilizer processing centers have been established in Salyan district to support pesticide-free agriculture. Located in Bangad Kupinde Municipality and Kumakh Rural Municipality, the facilities produce fertilizer using biodegradable forest waste such as leaves and grass, with no use of animal dung—marking the district’s first such initiative.
Asian Life Insurance opens rights share issue
Asian Life Insurance Company has launched its rights share issuance starting today, offering 42% rights shares—equivalent to 14,279,312 units at a face value of Rs 100 each. Muktinath Capital is managing the issuance and distribution of the shares.
Mayor Sampang’s stance against irregular payments stalls Dharan’s budget
Dharan Sub-Metropolitan City’s new budget remains delayed as Mayor Harka Sampang has refused to approve payments he deems unlawful. Despite the Local Government Operations Act requiring budget presentation by Asar 10, Dharan had not even drafted a budget by Asar 24. The process remains stuck in its early stages.
Rolpa local government spending irregularities reach Rs 1.23 billion
Local units in Rolpa district have accumulated spending irregularities totaling Rs 1.237 billion, according to the Office of the Auditor General’s 62nd report. This marks an increase from Rs 1.053 billion in the previous year. Rolpa Municipality alone accounted for Rs 111.43 million in financial discrepancies during FY 2080/81.
Radhi Hydropower to sell promoter shares in Rapti Hydro
Radhi Bidyut Company Limited has announced plans to sell its 1.29 million promoter shares in Rapti Hydro and General Construction Ltd. The decision was made during a board meeting held on Tuesday. The shares will be offloaded in the secondary market at prevailing market rates, as per a public disclosure.
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