KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to update on Nepal’s key financial developments. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top highlights:

NEPSE Drops 53 Points, Closes at 2,614.68: The Nepal Stock Exchange (NEPSE) plunged 53.04 points (2.04%) today, closing at 2,614.68. The market saw a total turnover of Rs. 6.32 Arba, with 12.37 million shares traded in 72,265 transactions.

Himalayan Reinsurance Limited (HRL) led in turnover with Rs. 42.06 Crores, while NMB 50 (NMB50) gained the most at 3.94%. Mithila Laghubitta (MLBBL) suffered the steepest loss, dropping 10%. Sector-wise, the Finance Index fell the most (-2.98%), whereas the Mutual Fund Index saw the smallest decline (-0.71%). NEPSE’s total market capitalization stood at Rs. 43.41 Kharba.

Nepal’s Public Debt Rises Sharply, Nears 47% of GDP: Nepal’s public debt has surged to Rs 26.76 trillion, reaching 46.91% of GDP, raising concerns among economists. In just eight months of the current fiscal year, Nepal borrowed Rs 241 billion, mostly from domestic sources. Currency fluctuations have added Rs 66 billion to the debt burden. Every Nepali now owes Rs 91,000 on average. Nepal has outstanding loans from eight bilateral and 16 multilateral donors, with 81.44% from the World Bank and ADB. Experts warn that without proper planning and transparent spending, Nepal risks falling into a debt trap despite government assurances of productive investments.

Industrialists Accuse NEA of Biased Power Cuts, Creating Load Shedding Crisis: Industrialists have accused the Nepal Electricity Authority (NEA) of cutting power to industries in a biased manner, forcing up to 12-hour shutdowns while maintaining uninterrupted supply for households. Cement, steel, and textile producers criticized NEA for denying the existence of load shedding and failing to provide a power cut schedule. They urged the government to implement the Lal Commission report to resolve disputes over dedicated and trunk power lines, calling NEA’s actions unjust and misleading.

Three High-Capacity Substations Near Completion in Bara and Parsa: Three 132 kV substations in Amlekhgunj and Prasauni (Bara) and Birgunj (Parsa) are in the final construction phase to enhance power supply in industrial corridors. Nepal Electricity Authority (NEA) Managing Director Kulman Ghising has instructed contractors to expedite completion. The substations will improve reliability, reduce voltage issues, and support cross-border electricity trade with India. Additional transmission lines and a 400 kV substation in Nijgadh are also planned to meet growing industrial power demands.

Uncertainty Looms Over Nepal’s Import of 200,000 Tons of Indian Wheat: Despite Nepal allocating a 200,000-ton wheat import quota from India, uncertainty remains over its full utilization. While 41 commercial firms received approval, only 30 have shown interest due to strict conditions, including advance payment and a three-month import deadline. Traders demand an extension, fearing losses as local wheat enters the market. Concerns also persist over India’s NCEL supply reliability and quality assurance. Industrialists urge direct government-to-government deals and payment after delivery for better security.

Slow Progress on Kakadbhitta-Padajungi Road Puts Asian Highway Project at Risk: The 45-km Kakadbhitta-Padajungi section of the East-West Highway, part of Nepal’s Asian Highway expansion, is progressing sluggishly despite a year passing since construction began. With only 15% of work completed instead of the targeted 20%, officials warn that delays could jeopardize the project’s 2027 completion deadline. The Rs 34.9 billion project, backed by the Asian Development Bank, includes road widening, culverts, and bridges, with additional contracts for major river crossings. Officials urge contractors to accelerate work before the monsoon to prevent further setbacks.

IPO Approvals Stall in Nepal as 84 Companies Await SEBON’s Decision: Nepal’s Securities Board (SEBON) faces growing delays in IPO approvals, with 84 companies in the pipeline. Since the current fiscal year began, only five IPOs have been approved. The backlog worsened after a parliamentary directive mandated approvals only for companies with a net worth above Rs 90 per share. The absence of a SEBON chairman and slow financial statement submissions have further delayed the process. Hydropower firms, the largest IPO applicants, are particularly affected. SEBON is revising regulations to address inefficiencies.

Public Accounts Committee Probes 48 Complaints Amid 100+ Allegations: The Public Accounts Committee (PAC) has initiated investigations into 48 out of over 100 complaints, forming seven subcommittees. Cases involve telecom revenue leaks, bidding fraud, insurance irregularities, and aviation corruption. Complaints also target Nepal Telecom, Ncell, Nepal Stock Exchange, and MCC projects. Allegations include unauthorized casino licenses, mismanaged IPOs, and misappropriation in infrastructure. PAC has called for amendment proposals, ensuring thorough scrutiny of financial mismanagement and corruption across multiple government and private institutions.

Om Megashree Pharma IPO Allotment on Chaitra 12: The IPO allotment of Om Megashree Pharmaceuticals Limited is set for Chaitra 12, 2081, at Prabhu Capital, Lazimpat. The company issued 18 lakh shares worth Rs. 18 Crores, with 14.76 lakh units available for the general public. With 19.88 lakh applicants requesting 2.36 crore shares, only 1.47 lakh will receive allotments.

MCC Aid to Nepal Resumes Partially Amid U.S. Review: The U.S. has signaled continued support for Nepal under the Millennium Challenge Corporation (MCC) despite an ongoing foreign aid review. After initial delays, MCC Nepal has received approval to resume partial work. Key procurement and operational activities have restarted, including consultant hiring for the Dhankhola-Lamahi and Narayanghat-Muglin road projects. The $555 million grant includes a 400 kV transmission line and infrastructure upgrades. While full program continuity remains uncertain, officials believe the aid will proceed as planned after the U.S. review concludes.

Nepal Govt Prepares Plan for Used EV Battery Management: The Nepal government has completed a study on managing used EV batteries, proposing their reuse in solar plants, power banks, substations, and research projects. The study suggests grading batteries based on capacity, setting up collection networks, and offering financial incentives for returns. AI-based platforms will guide users in proper disposal. The government will now develop regulatory standards based on this study, ensuring sustainability and reducing environmental risks as EV adoption grows in Nepal.

Non-Life Insurance Companies Earn Rs 28 Billion in Eight Months: In the first eight months of the fiscal year, 14 non-life insurance companies in Nepal collected Rs 28.02 billion in insurance premiums from 1.84 million policies. Shikhar Insurance led with Rs 4.01 billion, followed by Sagarmatha Lumbini with Rs 3.32 billion. Other top insurers include Himalayan Everest (Rs 2.21 billion) and IGI Prudential (Rs 2.37 billion). In February alone, non-life insurers issued 221,776 policies, earning Rs 3.75 billion in premiums.

NA Endorses Bill to Amend Cooperative Laws: The National Assembly (NA) has approved a proposal to amend Nepal’s cooperative laws. Minister for Land Management, Cooperatives, and Poverty Alleviation Balaram Adhikari presented the Bill, which passed with a majority vote. He assured that the amendments will address sectoral challenges. Several lawmakers participated in the deliberations. NA Chair Narayan Prasad Dahal announced that legislators can submit amendment proposals for further review.

PM Oli Highlights Development, Digital Nepal, and Youth Engagement: Prime Minister KP Sharma Oli stated that Nepal is progressing in development. Speaking at the “Together for Tomorrow, Youth and the Prime Minister” event, he acknowledged challenges but emphasized ongoing government efforts. He highlighted the Digital Nepal initiative, local-level hospitals, and improvements in health and education. Oli stressed entrepreneurship and modernizing agriculture for growth. Addressing 140 youths from various fields, he urged them to submit reports for policy consideration.

Nepal’s First Hydrogen Car Awaits Road Permit: PM KP Sharma Oli became Nepal’s first leader to ride a hydrogen-powered car, launched by Kathmandu University and Nepal Oil Corporation. However, it still lacks road permits. A draft law now proposes legalizing hydrogen vehicle imports. Kathmandu University has successfully produced green hydrogen from water, but commercial viability remains uncertain. Experts highlight safety concerns, urging strict regulations. While hydrogen could cut diesel imports and pollution, its storage and transport pose challenges. Nepal Oil Corporation suggests forming a regulatory body, as neighboring countries like India and Bhutan have already implemented hydrogen policies.

Government Revising Casino Regulations Amid Controversy: The Nepali government is drafting new casino regulations, proposing mandatory hotel ownership stakes for casino operators. The Ministry of Tourism returned the draft to amend the 10–20% hotel ownership clause, which sparked opposition. The Hotel Association Nepal argues this move benefits intermediaries, while casino operators fear increased financial burdens. The draft also proposes raising capital requirements, license fees, and minimum distance from borders. Disputes over past royalty issues further complicate the reform process.

Altitude Sickness Claims 11 Lives in Mustang in One Year: From mid-April 2023 to mid-April 2024, altitude sickness claimed 11 lives in Mustang, including nine foreigners and two Nepali nationals, aged 58 to 81, according to the District Police Office. Most foreign victims were Indian visitors. Fatalities occurred in Muktinath, Jomsom, and Thasang at different times of the year. A 63-year-old American was among the deceased. In the previous year, 17 tourists died from altitude sickness, highlighting ongoing health risks in the high-altitude region.

Supreme Court Clears Way for Road Expansion in Birgunj: After the Supreme Court dismissed petitions against the Birgunj main road expansion, the Hetaunda Road Division Office has instructed the Parsa Survey Office to demarcate the area. The planned expansion will widen the Gandak Chowk–Powerhouse–Ghantaghar–Birta–Rajat Jayanti Chowk–Miteri Bridge section to 25 meters on both sides.

Surveying is expected to take three months, after which affected properties will be documented. While Metropolitan Mayor Rajeshman Singh supports the project, Ward 9 Chair Jawahar Prasad Gupta and local activists argue that it will displace over 1,100 households and 20,000 residents. They advocate for alternative routes, including bypass roads and railway corridors. Despite opposition, the Supreme Court’s decision clears the legal path for the expansion, pending further administrative steps.

Gold and Silver Prices Drop in Domestic Market: Gold and silver prices fell in Nepal on the first trading day of the week. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is now priced at Rs 174,100 per tola, down by Rs 900 from Friday. Silver also declined by Rs 15, trading at Rs 1,980 per tola. In the international market, gold stands at $3,022 per ounce.