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 Declines by 7.10 Points, Closes at 2,697.59: On the third trading day of the week, the Nepal Stock Exchange (NEPSE) index dropped by 7.10 points, settling at 2,697.59. A total of 77.71 million shares from 312 listed companies were traded, amounting to over NRs 4.12 billion.

The insurance sector declined, with the life insurance sub-index down by 0.70% and the non-life insurance sub-index falling by 0.54%. Neco Insurance recorded the highest gain of 0.71%, reaching NRs 777.50, while LIC Nepal was the biggest loser, dropping 2.91% to NRs 1,034.

Police Seize Foreign Currency Worth Rs 250 Million in Kathmandu: Kathmandu police have seized foreign currency worth nearly Rs 250 million, including US dollars and euros, from a vehicle in Tokha. The Kathmandu Valley Crime Investigation Office arrested an individual transporting the money.

Superintendent of Police Ramesh Basnet stated that due to the large quantity, a machine is being used to count the notes. Authorities are conducting further investigations, and police plan to provide a detailed briefing on the case later today.

Nepal’s Public Debt Reaches Rs 26.76 Trillion: As of Falgun, Nepal’s outstanding public debt has reached Rs 26.76 trillion, accounting for 46.91% of GDP. This marks a rise from Rs 24.34 trillion in Asar. The internal debt stands at Rs 13.15 trillion (23.06% of GDP), while external debt amounts to Rs 13.60 trillion (23.85% of GDP). The government had set a target of raising Rs 5.47 trillion in public debt this year, with Rs 3.34 trillion raised by Falgun.

Urban Development Ministry Spends Only 17.43% of Capital Budget: The Ministry of Urban Development has spent just NPR 11.12 billion (17.43%) of its Rs 63.83 billion capital budget in eight months of the current fiscal year. Out of 3,716 new projects, 1,623 have invited bids, and 1,098 have contracts signed, but only 124 projects are completed. Major completed projects include Triveni Susta Suspension Bridge, Damak Commercial Complex (Jhapa), Champadevi Park (Kirtipur), and Bhaisipati Plaza (Phase 1). Several projects remain under modification or awaiting approval.

Banks See Increased Deposits, But Lending Growth Remains Slow: Nepal’s commercial banks are witnessing a rise in loan demand, yet lending growth remains sluggish compared to deposit inflows. As of mid-March, bank lending increased 6.12%, while deposits grew 5.62%, according to the Nepal Bankers’ Association. Despite Rs 40 billion in new deposits in February, only Rs 22.74 billion was disbursed as loans.

The Credit-to-Deposit (CD) ratio has dropped below 80%, leaving banks with Rs 646.57 billion in investable funds. Rastriya Banijya Bank holds the highest liquidity at Rs 116.98 billion, followed by Global IME Bank (Rs 64.25 billion) and Nepal Investment Mega Bank (Rs 59.92 billion).

Over Two-Thirds of Nepal’s Remittance Comes from Asia: A Nepal Rastra Bank report shows that over two-thirds of Nepal’s remittance inflow originates from Asia, with the Middle East leading at 41.88% (UAE, Saudi Arabia, Qatar, and Kuwait). The Asia-Pacific region follows with 24.63% (Japan, South Korea, and Malaysia). North America contributes 13.25%, while other regions account for 20.24%. Despite rising student migration, remittance from Europe and Australia remains low. However, inflows from non-traditional sources are gradually increasing as Middle Eastern and Asian shares decline.

Nepal Telecom to Invest Rs 5 Billion in New Billing System: Nepal Telecom has announced a plan to invest Rs 5 billion in a new Convergent Real-Time Billing (CRTB) and Customer Support (CS) system to enhance service efficiency. An international tender has been issued, with interested companies required to submit applications by April 24, 2025.

The new system will allow customers to access real-time billing information and receive instant responses to complaints via virtual platforms. The previous tender process was challenged in court, but following a Supreme Court ruling, Nepal Telecom has reissued the tender with updated terms.

First railway tanker containers bring crude edible oil to birgunj dry port: For the first time, crude edible oil has arrived at Birgunj Dry Port via railway tanker containers. Nepal Intermodal Transport Development Committee confirmed that 90 containers carrying 20,000 metric tons of soybean crude oil, imported by Shivshakti Ghee Industry, reached Birgunj from Argentina via India’s Haldia Port. Compared to road transport, railway shipment reduces costs and transit time by 15%. Sealed containers also prevent oil theft, boosting trade efficiency.

Sichuan Airlines Begins Regular Charter Flights on Pokhara-Chengdu Route: Sichuan Airlines has launched weekly chartered flights between Pokhara and Chengdu, marking a major boost for Pokhara International Airport (PIA). The first full-capacity flight on March 18 showcased PIA’s capability to handle larger aircraft. The initiative aims to enhance tourism and connectivity between Nepal and China. Meanwhile, Himalaya Airlines will start a Pokhara-Lhasa service from March 31. The new routes are expected to increase foreign tourist arrivals and support Nepal’s Visit Nepal 2025 and Pokhara Tourism Year campaigns.

Sunsari-Morang Industries Face 12-Hour Power Cuts, Steel Prices Surge: Industries in the Sunsari-Morang Industrial Corridor now face 12-hour daily load shedding, up from 8 hours, as NEA cites halted electricity imports from India. Production has dropped to 30%, raising costs. Steel manufacturers have increased TMT rod prices by Rs. 8 per kg, with further hikes expected. Industrialists blame power mismanagement, warning that consumers will ultimately bear the burden of rising costs.

Tata and Maruti Suzuki Vehicle Prices in Nepal to Rise from April: Tata Motors and Maruti Suzuki have announced price hikes from April 2025, affecting vehicle costs in Nepal. Tata Motors will increase prices by up to 2% due to rising global automobile costs. Sipradi Trading, the official distributor in Nepal, confirmed the impact on Tata trucks, buses, and EVs. Similarly, Maruti Suzuki will raise prices by up to 4%, citing higher import and operational costs. CG Motocorp, Nepal’s distributor, expects the hike to affect petrol and electric models.

Nepal’s Plywood Exports to India Halted Over BIS Certification Issues: Plywood exports from Nepal to India have stopped after India’s Bureau of Indian Standards (BIS) refused to issue quality certificates. Major checkpoints, including Biratnagar, Kakadbhitta, and Birgunj, have been affected. Nepalese manufacturers, who exported over Rs 4.5 billion annually, claim 45 industries have met BIS standards, yet inspections have stalled. The disruption threatens 2,500 jobs and may push Nepal toward veneer exports instead. Despite rising plywood and veneer exports, Nepal’s plywood industry faces a severe crisis.

Insurance Sector Declines Amid NEPSE Volatility: The insurance sector saw a downturn, with life insurance dropping 0.70% and non-life insurance down 0.54%. Among nine gainers, Neco Insurance rose 0.71% to NRs 777.50, while LIC Nepal suffered the biggest loss, falling 2.91% to NRs 1,034. Other declining insurers included Siddhartha Premier (-2.33%) and Reliable Nepal Life (-1.64%). Overall, 312 companies traded 77.71 million shares, totaling NRs 4.12 billion in turnover.

Insurance Companies Turn to Rights Shares to Meet Capital Requirements: Nepal Insurance Authority’s directive to increase paid-up capital has led 10 insurance companies to issue rights shares. Life insurers must raise capital to Rs 5 billion, while non-life insurers need Rs 2.5 billion.

Among life insurers, LIC Nepal, Sun Nepal Life, Prabhu Mahalaxmi Life, and Asian Life opted for rights shares, while NLG, Neco, Prabhu, Nepal, United Ajod, and Sanima GIC did the same in non-life. LIC Nepal and NLG have completed sales, but some issues struggle due to weak investor demand in a bearish market.

84 Companies Await IPO Approval, Including Insurance: Two new companies, Aarati Power and Mewa Developers, have applied for IPO approval, bringing the total to 84 companies, aiming to raise NRs 53 billion. Among them, three micro-insurance companies plan to issue 6.75 million shares worth NRs 675 million. Additionally, one microfinance company seeks approval for 80,000 shares worth NRs 8 million. The hydropower sector leads with 44 companies, while manufacturing, tourism, and investment groups also await approval.

Nepal Insurance Authority Relies on Contract Staff Amid Regulatory Expansion: Nepal Insurance Authority employs 160 staff, with over 50 on contracts, making up 31.25% of its workforce. Due to expanding regulations and technical complexities, skilled professionals are essential. The central office has 29 contract employees, handling actuarial, legal, and compliance tasks, while 21 serve in provincial offices. Recruitment challenges have led to contract renewals under former chair Madan Dahal. Spokesperson Sushil Dev Subedi stated that only technical staff are hired on contracts, with permanent hiring requiring government approval.

Electric Vehicle Manufacturing Expands in Nepal: Nepal is witnessing a rise in vehicle assembly and manufacturing industries. TBD Infratech has set up a plant in Makwanpur to produce electric motorcycles, scooters, cars, and vans, with an investment commitment of Rs 1.89 billion. The company aims to manufacture 14,000 vehicles and 5,000 EV chargers annually. While brands like Hyundai, Bajaj, and TVS are assembling vehicles in Nepal, Hyundai remains the only company actively assembling four-wheelers, producing Venue and testing Creta and i10 models.

Crest Micro Life Insurance IPO Allotment Concluded: The IPO allotment of Crest Micro Life Insurance Limited was completed today at NIMB Ace Capital Limited, Kathmandu. The company issued 18,45,000 units worth Rs. 18.45 crores to the public. The IPO was oversubscribed 13.28 times, with 1,84,500 applicants receiving 10 units each via lottery. Crest Micro Life Insurance, licensed in April 2023, is headquartered in Surkhet with a paid-up capital of NPR 525 million.

Gold Price Rises by Rs 1,100 Per Tola in Nepal: The price of gold in the domestic market has increased by Rs 1,100 per tola (11.66 grams) today. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold is priced at Rs 175,200 per tola, up from Rs 174,100 on Monday. Silver rose by Rs 10 to Rs 2,050 per tola.