KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economic and financial landscape showed mixed signals on Tuesday, with the NEPSE index rising by 6.51 points amid broad-based sectoral gains, indicating cautious investor optimism. However, NEPSE also warned the public against misleading content on social media, signaling growing concerns about investor misinformation.
At the same time, the listing of major IPO and bonus shares, such as those of Bikash Hydropower and Himalayan Reinsurance, along with Hathway Investment’s proposed dividend, highlighted ongoing market activity and capital expansion. In the real economy, the Birgunj Customs Office reported strong revenue collection, and falling loan interest rates hit a five-year low, presenting a potentially favorable borrowing climate, though loan demand remains weak.
Meanwhile, the dramatic price drop in gold and silver reflects volatility in the precious metals market. On the policy front, the HKH Parliamentarians’ Meet concluded with a call for urgent regional cooperation on climate and biodiversity issues, while innovation and public interest were on display at the NADA Auto Show, where flying cars became a crowd-pulling centerpiece.
NEPSE index rises by 6.51 points
The Nepal Stock Exchange (NEPSE) index on Tuesday increased by 6.51 points, closing at 2,776.90 points. According to NEPSE, a total of 13,124,310 shares from 316 companies were traded in 61,784 transactions, generating a total turnover of Rs 5.63 billion. All sectoral sub-indices recorded gains in Tuesday’s trading. The Banking sector rose by 0.40 percent, Development Bank by 0.20 percent, Finance by 0.02 percent, Hotel and Tourism by 0.05 percent, Hydropower by 0.16 percent, and the Investment group by 0.21 percent. Similarly, Life Insurance increased by 0.25 percent, Production and Processing by 0.46 percent, Microfinance by 0.12 percent, Mutual Fund by 0.29 percent, Non-Life Insurance by 0.11 percent, Trade by 0.18 percent, and the Others group by 0.09 percent.
NEPSE warns public against misleading stock market content on social media
Nepal Stock Exchange (NEPSE) has expressed concern over misleading and unauthorized content related to the stock market circulating on social media. In an official statement, NEPSE spokesperson Murahari Parajuli said false claims, fake stock tips, buy-sell recommendations, and counterfeit videos or audios in NEPSE’s name have appeared online, which could negatively affect investors’ confidence. “NEPSE does not provide advice to buy or sell any securities, does not guarantee returns, nor specifies purchase or sale prices. Any content suggesting otherwise is entirely misleading and unauthorized,” the statement read. NEPSE clarified that all official information, notices, and press releases are shared exclusively through its website and official social media accounts. The exchange warned that using NEPSE’s name without authorization, creating apps, websites, or chat groups with similar names, constitutes a punishable offense.
Visitors flock to see flying cars at NADA Auto Show
Flying cars have become the main attraction at the ongoing NADA Auto Show 2025, drawing large crowds of curious visitors to Bhrikutimandap, where the event kicked off on Tuesday. The show was inaugurated by Prime Minister KP Sharma Oli, who also toured the exhibition, including a highlight display of Deepal’s EVTOL (electric vertical takeoff and landing vehicle), commonly referred to as a flying car. This year’s event features a wide range of vehicles, including 19 four-wheeler brands, 4 two-wheeler brands, and 13 light commercial vehicle brands. The show will run until September 24. In addition to vehicles, the exhibition includes over 125 stalls showcasing auto parts, tires, batteries, lubricants, and garage equipment, making it a comprehensive showcase for the automotive industry.
Gold price drops by Rs 1,200 per tola, silver also down
The price of gold fell by Rs 1,200 per tola on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. With the decline, gold was traded at Rs 195,100 per tola, down from Rs 196,300 per tola on Monday. Earlier, on August 8, gold had hit a record high of Rs 199,400 per tola before starting to decline. Meanwhile, silver prices also fell by Rs 15 per tola. Silver was priced at Rs 2,300 per tola, compared to Rs 2,315 per tola on the previous day. Silver had earlier reached a peak of Rs 2,350 per tola.
Loan interest rates fall to five-year low
Loan interest rates in Nepal’s banking sector have dropped to their lowest level in five years, creating what entrepreneurs describe as a favorable environment for borrowing. Yet, despite the cheap credit, demand for loans remains sluggish. According to Nepal Rastra Bank (NRB), the average interest rate on loans from commercial banks stood at 8.43 percent in mid-July 2021. It climbed to 11.62 percent in 2022 and further to 12.30 percent in 2023. Since then, however, the rate has steadily declined, falling to 7.99 percent by mid-May 2025, the lowest in half a decade. The downward trend has continued in recent months as deposit rates fell further. Several commercial banks reduced deposit rates for September as well, which will naturally push lending rates lower.
Birgunj Customs collects Rs 18.39 billion in revenue
The Birgunj Customs Office has collected Rs 18.39 billion in revenue during the first month of Shrawan (mid-July to mid-August) of the current fiscal year. This collection follows the recent merger of the Birgunj Customs Office and the Dry Port Customs Office, which have been operating under a single administrative unit since July 17, 2025. The integration is aimed at streamlining operations and improving service delivery. According to the office, the collected amount represents 87.68 percent of the monthly revenue target set for Shrawan. The Customs Department had set a target of Rs 20.98 billion for the month.
Hathway Investment Nepal proposes 12.632% dividend
Hathway Investment Nepal Limited (HATHY) has announced a proposed dividend of 12.632% for the fiscal year 2024/25. The decision was made during the company’s 215th board meeting held recenty. The proposal includes 12% bonus shares and a 0.632% cash dividend (including tax). The company’s current paid-up capital stands at Rs. 1.41 billion. The book closure date for dividend eligibility is yet to be announced. The proposed dividend will be subject to approval at the company’s upcoming Annual General Meeting (AGM).
Himalayan Reinsurance’s 4.5% bonus shares listed on NEPSE
A total of 4,680,000 bonus shares of Himalayan Reinsurance Limited (HRL) have been officially listed on the Nepal Stock Exchange (NEPSE). The company’s Annual General Meeting (AGM) had earlier approved a 4.74% dividend for the fiscal year 2024/25. Earlier, during its 71st board meeting, the company had proposed a dividend distribution based on its paid-up capital of Rs. 10.40 billion, comprising 4.5% bonus shares and a 0.24% cash dividend (for tax purposes). These bonus shares have now been listed on NEPSE.
Bikash Hydropower IPO shares listed on NEPSE
A total of 9,091,013 shares of Bikash Hydropower Company Limited (BHCL) have been listed on the Nepal Stock Exchange (NEPSE). This includes shares held by promoters, those allocated to project-affected locals, and shares issued to the general public. The opening price range for the first day of trading has been set between Rs 97.43 and Rs 292.29. If the company signs a trading agreement with NEPSE, the shares will be eligible for secondary market trading from the following day. Out of the total listed shares, 2,942,760 IPO shares—each with a face value of Rs 100—were issued to the public.
HKH Parliamentarians’ Meet ends with five-point call to action
The Hindu Kush Himalaya (HKH) Parliamentarians’ Meet 2025 concluded with a five-point call to action, emphasizing urgent regional cooperation to address climate change, air pollution, and biodiversity conservation. Organized for the first time in Nepal by the Agriculture, Cooperatives and Natural Resources Committee of the House of Representatives, the two-day event was held in Kathmandu under the theme ‘Sustaining Nature, Empowering People’. Parliamentarians and delegates from countries across the HKH region gathered to highlight the escalating threats of climate risks, environmental degradation, and biodiversity loss. The forum concluded that increasing climate vulnerabilities, pollution, and ecological loss across the HKH region—an area of shared environmental, social, and economic significance—are posing serious threats to both local communities and ecosystems.
Physical progress of Siddhababa Tunnel reaches nearly 60 percent
Construction work on the Siddhababa Tunnel, a national pride project, is progressing steadily. According to the project office, tunnel lining work—covering the base and sidewalls—is currently underway along with other key construction activities. The pace of construction has increased following the “breakthrough” of the tunnel at the Dobhan-Siddhababa section in Tinau Rural Municipality-3, Palpa, along the Siddhartha Highway. Project Chief Krishna Raj Adhikari informed that the tunnel has achieved 59.73 percent physical progress and 51.1 percent financial progress so far. As of now, 1,089 meters of the main tunnel’s invert (ground surface) have been completed, and 994 meters of sidewall lining have been finished. Currently, lining work is ongoing on a 292-meter stretch inside the tunnel.
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