KATHMANDU: Stay updated with Nepal News’ Evening Economic Briefing, your daily snapshot of Nepal’s financial landscape. This update provides key insights into market trends, economic indicators, and major financial developments, keeping you informed in a rapidly evolving economy. Whether tracking stock movements, foreign exchange reserves, or policy shifts, this briefing distills crucial data into a concise, digestible format. Designed for accuracy and relevance, it’s your essential guide to navigating Nepal’s economic pulse. Here are today’s top updates:
NEPSE Gains 17.28 Points, Closes at 2,736.48: The Nepal Stock Exchange (NEPSE) gained 17.28 points (1.17%) today, closing at 2,736.48, after a previous session loss. The index fluctuated between 2,745.58 and 2,717.29, with a total turnover of Rs. 8.23 Arba from 79,236 transactions. MBLPO led turnover at Rs. 81.36 Crores, while PHCL gained 9.79%. WNLB dropped 10%, making it the worst performer. Among sectoral indices, Investment Index rose 1.76%, while Development Bank Index fell 0.33%.
Economic Procedure and Fiscal Responsibility Bill Tabled in Parliament: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel presented the Economic Procedure and Fiscal Responsibility (First Amendment) Bill, 2081 in the House of Representatives. Responding to protests from lawmakers, he defended the federal government’s role in development. Lawmakers, including Prabhu Saha and Chitra Bahadur KC, criticized the bill, citing concerns over tax policies, economic transparency, and the Planning Commission’s reduced role. Despite opposition, the House rejected the protest notices by a majority. Minister Paudel assured discussions on tax policies in the upcoming budget preparation process.
Loan Defaults on the Rise: Over 105,600 Borrowers Blacklisted in 6.5 Years: The number of loan defaulters in Nepal has been increasing rapidly, with over 105,600 borrowers blacklisted in the last 6.5 years, according to the Credit Information Center. From 2075 BS to 2081 BS (up to Falgun 25), the number of blacklisted borrowers has surged significantly. In 2075 BS, only 1,300 borrowers were blacklisted, but the number grew to 3,000 in 2076 and 3,200 in 2077. By 2078, the figure rose to 7,900, and in 2079, it surpassed 19,000. The trend continued in 2080, with 33,200 borrowers blacklisted. In 2081, the situation worsened further, with 37,500 borrowers added to the list by Falgun 25. Most defaulters were blacklisted due to bounced checks caused by insufficient funds. Currently, around 200 borrowers are being blacklisted daily, with 220 added on Falgun 25 alone. The rising trend indicates increasing financial distress among borrowers.
Insurance Companies Pay Over Rs. 3 Billion for Flood Damage Claims: Nepal’s insurance companies have paid over Rs. 3.05 billion in claims for damages caused by the October floods. According to Nepal Insurance Authority data, 2,249 claims have been settled within five months, while Rs. 9.05 billion worth of claims remain unpaid. A total of Rs. 12.64 billion in claims were filed, with property insurance accounting for the largest portion. So far, insurers have paid Rs. 2.2 billion under property insurance, though Rs. 6.44 billion is still pending. Similarly, Rs. 50.44 crore has been paid under motor insurance, while Rs. 2.75 billion was claimed for engineering risks, with only Rs. 30.24 crore settled. Among insurers, Siddhartha Premier Insurance led with Rs. 58.27 crore in payouts, followed by Shikhar Insurance at Rs. 47.73 crore. Other major contributors include Sagarmatha Lumbini Insurance, IGI Prudential, United Ajod, and Himalayan Everest Insurance. Many claims are still awaiting settlement.
BP Highway Reconstruction Delayed, Unusable This Monsoon: Due to delayed funding, the flood-damaged BP Highway will not be operational this monsoon. The government has initiated the tender process for reconstruction, including the Nepalthok–Barkhekhola section, which will be widened to 10 meters with drainage and asphalt paving. The process will take three months, coinciding with the monsoon, delaying construction. The government has allocated Rs 1 billion, with Rs 700 million estimated for reconstruction costs.
Government to Classify Roads into Seven Categories: The government is preparing to classify Nepal’s road network into seven categories under the Public Roads Act 2081, replacing the 50-year-old Public Roads Act 2031. The new classification divides roads into federal, provincial, and local networks. Federal roads will include expressways, national highways, and strategic roads. Provincial roads will cover regional highways, while local roads will include urban and rural roads. Responsibilities for construction, maintenance, and management will be assigned accordingly. The bill also restricts industries along highways and allows leasing road jurisdiction land. The proposal is under review with provincial governments before cabinet approval.
Six Companies Qualified for Nepal’s Currency Printing Contract: Nepal Rastra Bank has shortlisted six companies, including one from China, for the next phase of currency printing. The bank invited applications on January 10, 2025, for designing, printing, supplying, and delivering Nepali notes. The qualified firms include China Banknote Printing & Minting Corporation (China), De La Rue International Ltd (UK), Giesecke+Devrient Currency Technology (Germany), Joint Stock Company Goznak (Russia), Oberthur Fiduciaire (France), and Polish Security Printing Works (Poland). One of these firms will be awarded the final contract.
NTA to Approve 5G for Telecom Companies Within a Week: The Nepal Telecommunications Authority (NTA) has announced it will approve 5G services for telecom companies within a week. NTA Chairman Bhupendra Bhandari stated at a SEJON event that if companies apply, approval will be granted immediately. While Nepal’s telecom sector lacks 5G infrastructure, Bhandari suggested launching in eight cities initially. NTA is ready to provide 21 MHz frequency. Nepal Telecom has only conducted trials, while Ncell has yet to test 5G due to high investment costs.
Chure-Terai Madhes Conservation Committee Spends Rs 15 Billion in 10 Years: Since its establishment in 2014, the Chure-Terai Madhes Conservation and Development Committee has spent Rs 14.96 billion, achieving 88.93% financial and 91.84% physical progress. The committee, currently staffed with 86 employees, has completed projects such as 412 km embankments, 166 hectares of green belts, 139 wetlands restoration, and the production/distribution of 29.3 million saplings. Despite its efforts, the committee faces budget constraints, staffing shortages, political interference, and corruption allegations. Recently, two officials were dismissed for ineligibility. In response, the government is working on restructuring the committee for greater efficiency.
Nepal’s Telecom Sector Faces Revenue Decline Amid Rising Costs: Nepali telecom companies need to spend Rs 6 billion annually to maintain smooth services, but declining revenue has raised concerns among industry stakeholders. Telecom expert Manohar Kumar Bhattarai highlighted that while 90% of Nepal’s population has 4G coverage, only 20% of users actively use mobile data.
Despite increasing investment in 4G expansion, returns remain low, affecting operators’ sustainability. Ncell CEO Jabbor Kayumov warned of an impending crisis, citing Nepal’s drop in the GMS rankings from 117th to 119th. He urged regulatory reforms to attract foreign investment and support telecom growth.
Insurance Authority to Operate Court-like Bench for Dispute Resolution: The Nepal Insurance Authority (NIA) is set to introduce a courtroom-style bench for hearing and resolving insurance-related disputes. Operating as a quasi-judicial body, the authority has established a dedicated hearing room in its newly built headquarters. In its first board meeting chaired by newly appointed chairman Sharad Ojha, the authority decided to streamline case proceedings like a regular court. Executive Director Sushil Dev Subedi stated that an online portal will allow stakeholders to track case progress, hearing schedules, involved parties, verdicts, and full judgments. Policyholders can appoint legal representatives for advocacy, and required documents can be accessed online. Currently, parties must visit the NIA office for updates, but from Baisakh 1, this will be digitized. A three-member judicial panel, part of the five-member board, handles insurance claim disputes. However, the legal requirement for the Law Ministry Secretary’s presence in hearings remains unclear.
Reliable Capital to Issue “Reliable Samriddhi Yojana” Mutual Fund: Reliable Capital Limited has announced the issuance of its first closed-end mutual fund, “Reliable Samriddhi Yojana.” The issue will open from Baishakh 3 to Baishakh 7, 2082, with a possible extension until Baishakh 17 if not fully subscribed. Out of 10 crore units, 1% is allocated to the scheme manager, 14% to the fund sponsor, and 85% to the public. Investors can apply for 100 to 1 crore units.
Nepal Urges Poultry Farmers to Stay Alert Amid Bird Flu in India: Nepal’s Department of Livestock Services has urged poultry farmers near the Indian border to remain cautious about bird flu. With increasing cases in India, Nepal has intensified monitoring, though no cases have been detected domestically. In the past three months, bird flu has spread across nine Indian states, including Bihar. Authorities report the H5A strain as the cause, with ongoing surveillance in Nepal to prevent potential outbreaks.
Minister Khadka Urges Swift Construction of Arun Hydropower Projects: Energy Minister Dipak Khadka emphasized the urgent construction of hydropower projects on the Arun River to maximize benefits. Speaking at a ministry discussion on the Upper Arun and Arun IV projects, he highlighted past losses due to delays and stressed timely completion for economic growth. He assured problem resolution and investment security, noting job creation benefits. Key officials, including Secretary Suresh Acharya and senior energy experts, attended the meeting, agreeing on the need for maximum national benefits.
Industries Moving Towards Prosperity: Minister Bhandari: Minister for Industry, Commerce, and Supplies, Damodar Bhandari, stated that Nepal’s industries are now geared toward prosperity. Speaking at the Automotive Conclave-2081 organized by MeroAuto, he reaffirmed the government’s commitment to economic reforms, emphasizing the private sector as a top priority in the upcoming budget. He urged policy submissions aligned with existing laws and stressed the need to promote Nepali products for industrial growth.
First Commercial Chartered Flight from Pokhara to Chengdu on March 18: The first commercial chartered flight on the Pokhara-Chengdu route will operate on March 18, aiming to regularize international flights at Pokhara Regional International Airport. This initiative, led by the private sector, involves China Travels International, the Chinese Embassy, and Sichuan Airlines. With support from the Nepal-based Chinese Overseas Association, the move is expected to boost tourism, bringing 1,250 Chinese tourists in three months.
Gold and Silver Prices Rise in Nepal: The price of gold in Nepal increased by Rs 600 per tola today, reaching Rs 170,500, up from Rs 169,900 on Tuesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Similarly, silver prices rose by Rs 30 per tola, now fixed at Rs 2,000 per tola.
