KATHMANDU: Welcome to Nepal News’ Evening Economic Brief, your essential update on Nepal’s key financial developments. Stay ahead with concise insights on market trends, economic indicators, and policy shifts. Whether it’s stock movements, foreign exchange reserves, or major financial decisions, we deliver the most relevant data in a clear, digestible format. This economic briefing keeps you informed on Nepal’s evolving economic landscape. Here are today’s top updates:
NEPSE Falls by 10.14 Points Amid Market Volatility: The Nepal Stock Exchange (NEPSE) declined by 10.14 points (0.37%) to close at 2,704.70, extending its previous session’s drop of 21.63 points. The index fluctuated between 2,739.55 and 2,693.55, with a total turnover of Rs. 5.40 Arba across 57,585 transactions. Himalayan Reinsurance Limited (HRL) led in turnover, while Rapti Hydro (RHGCL) gained 9.86%. Mahalaxmi Bikas Bank (MLBL) saw the biggest loss, falling 5.63%. The Manufacturing Index rose 0.44%, while the Trading Index dropped 3.38%, marking the steepest sectoral decline.
Government Moves to Implement MCA Nepal Project with Internal Resources Amid U.S. Aid Uncertainty: The Nepal government has ensured internal funding for the Millennium Challenge Account (MCA) Nepal after the U.S. suspended aid. Despite uncertainty, Nepal is advancing the project, which includes electricity transmission and road upgrades. While experts urge diplomatic efforts to restore U.S. funding, the government has prioritized MCA alongside key national projects. Critics argue shifting to internal funding without pressing the U.S. may not be the best strategy.
Commercial Banks See Growth in Deposits and Lending: The deposit collection and loan disbursement of commercial banks have improved. By the end of Falgun in the current fiscal year, total deposits increased by 5.5%, while loan disbursement grew by 6%. The total deposits in banks reached NPR 60.37 trillion. Nepal Investment Mega Bank saw significant growth in deposits, whereas NIC Asia Bank experienced a decline. Overall, banking liquidity is improving.
Nepal Pledges Stronger Glacier Protection and Weather Forecasting: Energy Minister Deepak Khadka reaffirmed the government’s commitment to protecting glacier lakes and enhancing meteorological forecasting. Speaking at the Nepal National Glacier, Water, and Weather Week (NNGWWW 2025), he pledged budget allocation for glacier conservation next year. Emphasizing climate change risks, he called for policy action and digital upgrades to forecasting systems. The event, themed “Glacier Preservation, Closing the Early Warning Gap Together,” promotes water resource awareness.
NEA Accelerates Completion of Madhya Bhotekoshi Hydropower and Transmission Line: The Nepal Electricity Authority (NEA) aims to complete the Madhya Bhotekoshi Hydropower Project (102 MW) and the Khimti-Bahrabise transmission line within a month. Repairs on a leaked tunnel are ongoing, and the 400 kV transmission line is nearing completion. NEA’s Kul Man Ghising has urged swift action to ensure timely electricity supply. The project is crucial for balancing Nepal’s winter power demand.
438 New Industries Registered in Eight Months: From Shrawan to Falgun of the current fiscal year 2081/82, 438 new industries were registered, with an investment commitment of NPR 171.35 billion. These industries are expected to create 23,064 jobs. Among them, 375 are small-scale industries with an investment commitment of NPR 23.08 billion, while 23 are medium-scale industries with NPR 8.38 billion in pledged investment.
Government to Deduct 1% Salary for Health Insurance Fund: The government has introduced a plan to deduct 1% from the salaries of government employees and people’s representatives to fund health insurance. The collected amount will be matched by the government and deposited into the Health Insurance Fund. The move aims to address financial shortfalls in the Health Insurance Board, which has pending claims of Rs 15 billion. The plan also proposes expanding insurance coverage and benefits.
26th Flora Expo Concludes with Over NPR 110 Million in Transactions: The 26th Flora Expo, held at Bhrikutimandap, Kathmandu, concluded on Monday after four days. The event recorded over NPR 110.7 million in transactions, with more than 59,000 visitors. The final day alone saw NPR 21.8 million in sales. The expo featured 83 stalls showcasing ornamental plants, seasonal flowers, and fruit-bearing plants. Organizers plan to expand next year’s expo to an international level.
Government Mandates Use of Domestic Products in Public Institutions: The government has instructed local and provincial authorities to prioritize domestically produced goods. The Ministry of Industry, Commerce, and Supplies has mandated 46 types of domestic products for public entities, ensuring implementation through official directives. The directive covers office supplies, textiles, furniture, food, machinery, and construction materials. To enforce compliance, a three-tier monitoring system will be established, and institutions adhering to the policy will be rewarded annually.
NGO Federation Submits 21-Point Declaration to PM Oli: The newly-elected leadership of the NGO Federation of Nepal has submitted a 21-point Declaration to Prime Minister KP Sharma Oli. Federation President Arjun Kumar Bhattarai led the delegation to Baluwatar, emphasizing policies supporting social organizations and proposing a Nepal Development Conference. PM Oli congratulated the new leadership. The Federation’s 11th General Convention elected a 51-member committee with Bhattarai as President.
Om Megashree Pharmaceuticals IPO Oversubscribed 16.05 Times: Om Megashree Pharmaceuticals Limited closed its IPO issue of 14,76,000 units on 3rd Chaitra, 2081. The company had issued 18,00,000 shares (30% of its Rs. 60 Crore capital), with allocations for employees, mutual funds, and Nepali workers abroad. Managed by Prabhu Capital, the IPO saw 19,88,836 applicants requesting 2,36,91,510 shares, oversubscribing it by 16.05 times. CARE Ratings Nepal reaffirmed OMPL’s ‘CARE-NP BB- (Is)’ rating, indicating moderate default risk. Established in 2016, OMPL operates a pharmaceutical plant in Chitwan, with partial production starting on February 19, 2024.
Crest Micro Life Insurance IPO Allotment Set for 5th Chaitra: The IPO allotment of Crest Micro Life Insurance Limited will take place on 5th Chaitra, 2081, at 8:30 AM at NIMB Ace Capital, Lazimpat. Out of 22,50,000 issued shares, 18,45,000 units were allocated to the general public. The IPO saw an overwhelming response, with 20,50,633 applicants requesting 2,45,14,280 shares, oversubscribing it significantly. Only 1,84,500 applicants will secure shares. ICRA Nepal rated the company [ICRANP-IR] BB, indicating moderate default risk. Licensed in April 2023, Crest operates from Surkhet and has a paid-up capital of NPR 525 million, backed by major institutional investors.
Simkot Airport Expansion Stalled Due to Lack of Funding: The expansion of Simkot Airport has been stalled for a year due to a lack of government funding. Although all district-level procedures and documentation are complete, the project requires land acquisition, which has not been budgeted. Chief of Simkot’s Civil Aviation Authority, Mahendra Bahadur Singh, stated that delays have increased projected costs, with nine private houses affected. The expansion requires 60.81 square meters of land.
Startup Loan Applicants Urged to Contact IBID for Business Presentation: The Industrial Business Development Institute (IBID) has urged selected startup loan applicants to contact them by Chaitra 12 for business project presentations scheduled on Chaitra 13, 14, and 15. A total of 1,314 projects were shortlisted from 5,158 applications for the second phase evaluation. IBID plans to finalize the credit appraisal and disburse loans by the third week of Chaitra.
