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:

PM Oli Stresses Boosting Domestic Production and Consumption for Self-Reliance: Prime Minister KP Sharma Oli has emphasized the need to increase domestic production and encourage the use of locally made goods to achieve economic self-reliance. Speaking at the third national convention of the Nepal Industry and Business Federation on Friday, he urged citizens to prioritize local products over imports. “Using our own toothbrush and toothpaste every morning would be a source of pride,” he remarked. Meanwhile, Industry Minister Damodar Bhandari highlighted Nepal’s low export volume amid intense global competition. He also noted that the government has amended over a dozen economic laws to improve Nepal’s industrial environment.

Government to Issue 45 New Licenses for Liquor and Tobacco Industries, Ending Market Syndicate: The Ministry of Industry is preparing to open licensing for liquor and cigarette industries, a move halted for years due to market syndicates preventing new competition. Certain groups have long monopolized the sector, blocking new players from entering. Now, the government is set to issue 45 new licenses for distilleries, microbreweries, and tobacco production, with some investors agreeing to acquire up to three licenses each. The Industrial Promotion Board, chaired by the Industry Minister, will finalize the decision. The Department of Industry has begun internal preparations, aiming to break the monopoly and create a competitive market.

Public Accounts Committee Forms Seven Subcommittees to Investigate 48 Complaints: The Public Accounts Committee (PAC) of the House of Representatives has formed seven subcommittees to investigate 48 complaints related to various ministries and departments. Committee member Sanjay Gautam proposed the formation of the task forces. Additionally, Gautam’s existing committee will screen 16 more complaints and future submissions. Subcommittees will probe aviation, energy, telecom, finance, cooperatives, foreign employment, health, and corruption in Pokhara and Bhairahawa airports. Each is led by different lawmakers, including Lekanath Dahal, Prem Ale, Manish Jha, Gokul Baskota, and Tara Lama. The airport corruption committee must submit its report within 15 days.

Dhalkevar-Bara Transmission Line Completed, Strengthening Nepal-India Power Trade: The Dhalkevar-Bara section of the Hetauda-Dhalkevar-Inaruwa 400 kV transmission line has been completed, improving Nepal’s power transmission and enabling expanded Nepal-India electricity trade. The 100 km line passes through Madhesh Province to Saraswati Danda in Makwanpur. The Dhalkevar-Inaruwa 154 km section was already operational.

NEA Executive Director Kulman Ghising inaugurated the temporary 132 kV charge of the 400 kV line to ease westward electricity flow and facilitate power imports from India during winter shortages. Upgrading Hetauda-Dhalkevar’s old 132 kV line will boost capacity from 200 MW to 400 MW, enhancing domestic supply and exports to India.

Govt Warns Against Hiring Workers from Unlicensed Labour Suppliers: The Department of Labour and Occupational Safety has warned institutions against hiring workers from unlicensed labour suppliers, citing violations of the Labour Act.

At a press conference, Director General Kamal Prasad Bhattarai emphasized that government agencies, public institutions, and private enterprises must only engage licensed labour suppliers. The department stressed six key legal provisions, including minimum wage enforcement, labour audits, child labour prevention, and occupational safety.

Labour suppliers provide construction, domestic, security, sanitation, and technical workers. Authorities urged stakeholders to ensure fair labour practices and contribute to the social security fund to protect workers’ rights.

FNCCI Calls for Policy Reforms, Investment Boost in Fiscal Year 2025/26: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to introduce policy reforms, enhance investment opportunities, and streamline business services in its 2025/26 Policies and Programmes. FNCCI President Chandra Prasad Dhakal submitted key proposals to Industry Minister Damodar Bhandari, including integrating business services into the Nagarik App, restructuring investment bodies, and improving credit disbursement. It also called for lower taxes, better export facilities, and policies to attract foreign investment. FNCCI emphasized utilizing Nepal’s Rs 600 billion in available banking capital and proposed initiatives to boost manufacturing, agriculture, and tourism near Indian border towns.

Nepal Cracks Down on Garlic Imports from China Amid Smuggling Concerns: Nepal’s garlic imports from China have plummeted due to stricter government restrictions aimed at curbing smuggling into India. Imports fell from 16,798 metric tons in November-December to just 349 tons by mid-March, with major border points like Tatopani seeing no shipments since January. Authorities tightened regulations after detecting unusually high imports, coinciding with soaring garlic prices in India. A government study confirmed large-scale smuggling. Nepal’s limited domestic garlic production is primarily for local consumption. The Plant Quarantine Office has now mandated stricter compliance checks for importers before granting entry permits for Chinese garlic shipments.

Nepal Government Moves to Regulate Social Media, Registration Now Mandatory: The Nepal government has announced strict measures to regulate social media platforms. The Ministry of Communications and Information Technology issued a notice on Thursday, requiring platforms like Facebook, Instagram, and X (formerly Twitter) to register in Nepal within a month or face a potential ban. The government cited concerns over misuse, misinformation, tax evasion, and data security as key reasons. While experts acknowledge the need for regulation, they warn of technical and diplomatic challenges in enforcing compliance. The ministry has hinted that this could be the final warning before taking restrictive actions against non-compliant platforms.

Nepal Tourism Board and UNDP Launch $5 Million Sustainable Tourism Project: Nepal Tourism Board (NTB) and UNDP-Nepal have signed an agreement to launch the Sustainable Tourism Project (STP), a $5 million initiative aimed at job creation and tourism development. Over three years (2025–2028), the project targets 2,500 sustainable jobs and skill training for 5,000 individuals. It will enhance tourism infrastructure, digitization, and local livelihoods. NTB and UNDP will each contribute $1.5 million, with an additional $2 million mobilized jointly. The initiative aligns with Nepal’s Tourism Decade (2023–2032) goal of attracting 3.5 million annual visitors by 2032, boosting Nepal’s appeal as a sustainable global travel destination.

Stock Market Declines for Second Consecutive Week, Investors Lose Rs 111 Billion: Nepal’s stock market declined for the second consecutive week, closing at 2,669.31 points, down by 67.17 points from the previous week. Trading volume also dropped to Rs 26.29 billion. Market capitalization fell to Rs 4.432 trillion, wiping out Rs 111 billion in investor wealth. Technical indicators suggest the market is nearing the oversold zone, indicating potential further decline next week. The money flow index dropped to 30, signaling continued weakness. The finance sector suffered the most losses, while all sectors except trade closed in the red. Despite selling pressure easing, market sentiment remains bearish.

Nepal’s Banks Strengthen Environmental and Social Risk Assessments in Loan Disbursement: Nepal’s banks are increasingly integrating environmental and social risk assessments into their loan disbursement process. According to Nepal Rastra Bank (NRB), 33% of total loans in FY 2023/24 underwent such evaluations, up from 14% in the previous year. Rastriya Banijya Bank led with over 90% compliance, while NIC Asia Bank has yet to adopt the practice. Although not mandatory, banks are aligning with global standards. NRB’s 2022 directive requires assessments for loans exceeding Rs 10 million. Banks must also ensure compliance with Environmental Impact Assessment (EIA) requirements and report their risk management procedures annually to NRB.

Pathibhara Cable Car Dispute Should Be Resolved Through Dialogue: Human Rights Organizations: Five human rights organizations, including Amnesty International Nepal and INSEC, have urged all stakeholders to resolve the ongoing dispute over the Pathibhara cable car project through dialogue. The 2.5 km cable car, under construction in Taplejung, has sparked tensions. Their report highlights human rights concerns and urges the government, investors, and locals to seek a peaceful resolution. The organizations also criticized excessive force by authorities and violent protests by the “No Cable Car” group, emphasizing the need for lawful, proportionate actions.

MA Power to Invest Rs. 20.25 Billion in 90MW Marsyangdi Hydropower Project: MA Power Pvt. Ltd. is set to construct a 90MW hydropower project on the Marsyangdi River with an investment of Rs. 20.25 billion. The project spans Tanahun, Lamjung, and Gorkha districts and is undergoing final environmental approval. Construction will take five years, targeting commercial operation upon completion. The semi-reservoir project will generate 548.95 GWh annually. The produced electricity will be integrated into the national grid via a 220kV transmission line to NEA’s Markichowk substation, located 11.6 km away.

Govt to Provide Free Heart Attack Medicines at Three Federal Hospitals: The Ministry of Health and Population (MoHP) has announced that free heart attack medicines will be available at Tribhuvan University Teaching Hospital, Bir Hospital, and Bharatpur Teaching Hospital.

Health Minister Pradip Paudel emphasized that costly heart medications (worth Rs 200,000) remain unaffordable for many, leading to preventable deaths. The Burn Heart Worldwide organization has donated the first batch, and the government plans to procure more as needed. Dr. Pawan Jung Rayamajhi from the Supply Management Division said this initiative aims to save lives and ensure affordable emergency care for all citizens.

Govt Plans Large Reservoir-Based Drinking Water Projects for Long-Term Supply: Minister for Water Supply Pradeep Yadav has announced ongoing feasibility studies for large reservoir-based drinking water projects to address Nepal’s water crisis. Responding to lawmaker Bhuwan Bahadur Sunar in the National Assembly, he highlighted plans to divert Sunkoshi and Raptikhola rivers and implement deep boring projects in the Terai, where groundwater levels are declining.

Minister Yadav said 280 new drinking water projects will begin next fiscal year, with 38 Terai-Madhes projects already underway. The ministry is also collaborating with ICIMOD for water source conservation and installing chlorination units to ensure safe drinking water nationwide.

Regulating and Ensuring Transparency in the Insurance Sector is the Top Priority-Chairman Ojha:  Chairman of the Nepal Insurance Authority, Sharad Ojha, stated that necessary interventions would be made to regulate, strengthen, and ensure transparency in the insurance sector. Speaking at a special convention organized by the Employees’ Union, he reaffirmed his commitment to resolving sectoral issues. Executive Director Sushil Dev Subedi emphasized coordination between the union and management. Speakers urged insurance companies to allocate 2% of their profits for employee development and suggested appointing external CEOs in merged companies to ensure fair employment practices.

Government Will Ensure Equal Opportunities for All Entrepreneurs: Economic Advisor Khatiwada: Prime Minister’s Economic Advisor and former Finance Minister Dr. Yubaraj Khatiwada stated that the government will provide equal business opportunities for all entrepreneurs. Addressing the third convention of the Nepal Federation of Industries and Businesses, he emphasized that no policies will favor specific business groups. He assured that the government will not intimidate businesses but will resolve legal complexities in the economy. He urged industrialists to take the initiative in addressing energy issues while pressuring the government to play its role effectively.

Government Committed to Strengthening Economy Through Import Substitution and Export Promotion- Minister Bhandari: Minister for Industry, Commerce, and Supplies Damodar Bhandari has said the government is actively working towards import substitution and export promotion to strengthen Nepal’s economy. Speaking at an event on Friday, he mentioned that over a dozen economic laws have been amended to facilitate industries. He also highlighted the approval of the National Startup Policy 2081 and the implementation of the Startup Loan Program to promote entrepreneurship and employment.

Lumbini to Become Global Hub for Peace Tourism, Minister Pandey Says: Minister for Culture, Tourism, and Civil Aviation Badri Prasad Pandey has emphasized Lumbini as the epicenter of world peace tourism and a spiritual hub for Buddhists and peace seekers alike. Speaking at the Second Lumbini International Peace and Meditation Festival, he reaffirmed Nepal’s commitment to preserving Lumbini and promoting cultural, spiritual, and adventure tourism. He urged swift implementation of recent tourism agreements with Thailand and Cambodia. Chinese Ambassador Chen Song highlighted China’s role in strengthening ties through the Lumbini International Peace Conference. The festival featured a mass meditation session with 100 monks and 400 seekers at Mayadevi Temple.

Chief Secretary Directs Swift Action to Remove Nepal from Grey List: Chief Secretary Ek Narayan Aryal has directed department heads to take immediate action to remove Nepal from the FATF Grey List. In a meeting, he urged officials to avoid delays and excuses, emphasizing effective investigation and prosecution of financial crimes. He also instructed the completion of National ID integration and the digitization of key government services, including passports, taxation, vehicle registration, and pension verification, to enhance citizen-friendly governance.

Low Wages Driving Nepalese Workers Abroad, Says Labour Department Chief: Director General of the Department of Labour and Occupational Safety, Kamal Raj Bhattarai, has stated that low wages are pushing Nepalese workers to seek jobs abroad. Speaking at a press conference, he emphasized the need for strict implementation of minimum wages to ensure a decent livelihood. The government recently held the National Labour and Employment Conference and declared 2081-92 as the National Employment Decade to address labour challenges.

Gold and Silver Prices Drop in Nepali Market: The price of gold and silver has decreased in the domestic market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is being traded at Rs 175,000 per tola (11.66 grams), down from Rs 176,000 on Thursday.

Similarly, the price of silver has declined by Rs 35 per tola, with the new rate set at Rs 1,995 per tola. Meanwhile, the price of gold in the international market stands at $3,027 per ounce today. The price fluctuations are influenced by global market trends and economic factors.