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 14.88 Points, Closes at 2,682.15: The Nepal Stock Exchange (NEPSE) declined by 14.88 points (0.55%) to close at 2,682.15. The total turnover reached Rs. 5.14 Arba, with 9.58 million shares traded across 311 companies. Himalayan Reinsurance Limited led turnover at Rs. 29.67 Crores. Mithila LaghuBitta gained 9.39%, while Samudayik Laghubitta dropped 9.20%. The Trading Index rose 0.60%, while the Finance Index fell 1.53%. The session saw 54,622 transactions, with the index fluctuating between 2,706.58 and 2,676.30.
Insurance Authority Directs Companies to Form Investment Units: Nepal Insurance Authority has instructed all life, non-life, and reinsurance companies to establish an Investment Management Unit within seven days. The unit must be overseen by a senior management employee with investment experience. Microinsurance companies must also assign a qualified employee for investment management. Companies that have already implemented investment policies must inform the authority. This directive aims to enhance investment oversight and efficiency in the insurance sector.
NEPSE to Implement 15-Minute Weighted Average Closing Price Rule: Starting tomorrow (Chaitra 07), NEPSE will adopt a 15-minute weighted average closing price rule to prevent last-minute price manipulation. The closing price will now be based on trades executed between 2:45 PM and 3:00 PM, with higher-volume transactions having more influence. This replaces the previous system, which relied on the last traded price. NEPSE expects the new rule to enhance market fairness, transparency, and stability, ensuring more accurate pricing and boosting investor confidence.
Home Loans Surge as Interest Rates Decline: With falling interest rates, more people are taking bank loans to buy homes and land. Nepal Rastra Bank’s latest data shows that personal home loans from commercial banks have increased by 4.36% in the past year, reaching NPR 318.84 billion. Siddhartha Bank led with a 29.15% rise, while Nepal Bank saw the highest decline of 21.13%. Eight banks reduced home loans, while twelve banks increased lending.
Nepal’s Economy Struggles Amid Excess Liquidity and Low Investment: Nepal’s economy has remained stagnant for over three years despite declining interest rates and surplus liquidity in the financial system. Over NPR 812.8 billion remains unutilized due to a lack of investment opportunities. Banks are reluctant to lend, focusing instead on debt recovery. Experts suggest channeling funds into productive sectors, enhancing local entrepreneurship, and improving financial policies to revitalize economic growth and ensure sustainable development.
Cement Producers Demand 24-Hour Electricity Supply: The Nepal Cement Producers Association has urged the government to ensure round-the-clock electricity supply to cement industries. In a statement, the association stated that load-shedding has forced producers to rely on costly alternative energy sources, making current cement prices unsustainable. Despite Nepal achieving self-sufficiency in cement production and even exporting, industries are already facing 12-14 hours of power cuts. The association warned that longer outages could severely impact production and increase costs.
Illegal Fertilizer Imports Linked to Nepal’s FATF Grey Listing: A government study has identified illegal and insecure chemical fertilizer imports as a factor in Nepal’s inclusion on the FATF grey list. A recent investigation revealed that fertilizers were imported from Iran—under U.S. sanctions—using forged documents. The issue, exposed by Klikmandu last year, has drawn scrutiny from the Finance Ministry and Prime Minister’s Office. Authorities are now closely monitoring new fertilizer imports to prevent further violations and mitigate Nepal’s grey list status.
Pokhara Hotels Offer 20% Discount for Nepali New Year Tourists: Hotels in Pokhara will provide a 20% discount on room rates during the Nepali New Year 2082 celebrations. The offer is part of the 20th Fewa New Year Festival (April 12-14), featuring cultural performances, tourism promotions, and local cuisine. With an estimated Rs 5 million budget, the festival aims to boost tourism and economic activity.
National Assembly Passes Banking Offense and Punishment Bill: The National Assembly has unanimously passed the “Banking Offense and Punishment (Second Amendment) Bill, 2080,” which was received from the House of Representatives. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel presented the bill in Wednesday’s session. The assembly also tabled messages from the House regarding amendments to governance and cooperative laws. The next session is scheduled for March 21 at 11 AM.
Nepal Prepares for Transition to Developing Nation Status: The Ministry of Finance has begun preparations for Nepal’s transition from a Least Developed Country (LDC) to a Developing Nation by November 2026. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has directed officials to ensure a smooth transition. The strategy includes sustainable economic growth, job creation, stable monetary policies, and enhanced financial accessibility. The transition is expected to boost investment, trade partnerships, and Nepal’s global credibility.
Top 08 Brokers Driving NEPSE Trading Today: Eight of the top 10 brokerage firms recorded higher purchases than sales today. NASA Securities led with NPR 33.80 crore in purchases and NPR 30.11 crore in sales. Online Securities and Sunny Securities followed closely. Vision, Imperial, Agrawal, Hatemalo, and Aryatara Securities also saw higher buying. However, Shree Krishna and Deep Shikha Securities had higher sales. The trend indicates strong investor confidence, with rising trading volumes across major brokers.
Minister Admits Evening Load Shedding Continues: Energy Minister Deepak Khadka acknowledged ongoing evening load shedding while responding to questions in the National Assembly. He stated that Kulman Ghising is not the “hero” of load shedding elimination, attributing power availability to imports from India and private sector production. Nepal Electricity Authority (NEA) produces 700 MW, while the private sector generates 2,800 MW. Khadka admitted that despite official claims, industries face power cuts to prioritize households.
Government Intensifies Preparations for New Budget: With the constitutional deadline of mid-June approaching, the Ministry of Finance has accelerated preparations for the new budget. Ministerial discussions are in the final stages, covering various ministries, including infrastructure, energy, health, and finance. Finance Minister Bishnu Paudel has directed ministries to propose realistic budgets, avoid scattered resource allocation, and prioritize ongoing projects. The ministry is also coordinating with donor agencies to secure funding for MCC-related projects. A dedicated budget drafting committee is finalizing key policies and priorities.
Upper Rawakhola Hydropower Resumes After Compensation Deal: The Upper Rawakhola Hydropower Project has resumed operations after being shut down by locals of Kepilasgadhi Rural Municipality demanding compensation. An all-party meeting led by Chairperson Samir Rai agreed to compensate affected landowners within 35 days. Protesters had blocked operations, accusing hydropower companies of land acquisition without payment. A seven-member coordination committee has been formed to oversee the compensation process, ensuring a resolution to the dispute.
Climate Change Poses Severe Risk to Nepal’s Farmers: A government study reveals that 500,000 goat-farming households in Nepal face extreme risk from climate change, with another 2 million at high to moderate risk. Similarly, 300,000 cow-farming households are at extreme risk. Rising temperatures have reduced milk production, while climate adaptation technologies remain unavailable. Agricultural production is shifting, with Terai crops now growing in hills. Experts warn that declining rainfall and increasing temperatures threaten Nepal’s overall food security.
Five Shortlisted Candidates Present Plans for NEPSE CEO Position: Five candidates shortlisted for the Nepal Stock Exchange (NEPSE) CEO position have presented their business plans. The shortlisted candidates are Chudamani Chapagai, Narad Kumar Luitel, Badri Prasad Acharya, and Hemant Basyal. The recommendation committee published the shortlist on March 17 and conducted interviews and presentations at the Ministry of Finance on March 20.
Benighat-Arughat-Larke Road Progresses, Linking Nepal to Tibet: A 42-km track has been opened along the Benighat-Arughat-Larke road, with vehicles now operating on a 36-km stretch. The Nepal Army, responsible for constructing 92 km of the 154-km road, has also built a bailey bridge at Machhikhola. The government allocated Rs 70 million this fiscal year for additional construction.
Butwal-Pokhara Road to Be Upgraded with Tunnels and Viaducts: The 157.95 km Butwal-Pokhara road under Siddhartha Highway will be upgraded at a cost of Rs. 19.75 billion. The project includes viaducts, tunnels, and a 50-meter-wide, two-lane blacktopped road. It will impact 355 households, 43 community forests, and 31 rivers. 2,982 trees will be cut, but no land acquisition is needed. The four-year project aims to improve connectivity between the Terai and hilly regions, boosting trade and travel efficiency.
Nepal, Cambodia Discuss Direct Air Connectivity: The Nepalese government has initiated discussions with Cambodia on establishing direct air services. During a meeting in Phnom Penh on Tuesday, Minister for Culture, Tourism, and Civil Aviation Badri Prasad Pandey held talks with his Cambodian counterpart regarding direct flights between Nepal and Cambodia. The discussions also covered the Greater Buddhist Circuit and broader tourism collaboration. Pandey further explored ways to strengthen bilateral tourism and cultural ties.
Government Advances Health Insurance Reform with New Report: Health Minister Pradeep Paudel announced that the government is moving forward with implementing health insurance reforms based on an alternative proposal. Responding to parliamentary discussions, he cited budget constraints but emphasized the need to clear outstanding dues and expand services. Paudel proposed a unified contribution system to strengthen funding. MP Dr. Sunil Sharma stressed the need to expand coverage, improve rural healthcare access, and ensure affordability for marginalized communities.
Gold Price Hits Record High in Nepal: The price of gold in Nepal reached an all-time high of Rs 176,000 per tola today, rising by Rs 800 from the previous day, according to the Federation of Nepal Gold and Silver Dealers’ Association. Internationally, gold is priced at $3,035 per ounce. Meanwhile, silver fell by Rs 5 to Rs 2,045 per tola.
