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 Rebounds by 26.10 Points After Six-Day Losing Streak: After six consecutive losses, the Nepal Stock Exchange (NEPSE) surged 26.10 points (0.99%), closing at 2,640.78. The market fluctuated between 2,645.99 and 2,592.32, with a total turnover of Rs. 4.48 Arba from 58,235 transactions across 326 companies. Guardian Micro Life Insurance (GMLI) led gainers with a 9.51% rise, while Upper Hewakhola Hydropower (UHEWA) dropped 4.26%. Finance Index saw the highest sectoral gain of 3.52%, while the Mutual Fund Index increased by 0.44%. Shivam Cements led turnover charts, recording trades worth Rs. 32.69 Crores, closing at Rs. 966.60.

Nepal’s Poverty Reduction Remarkable, but Growth Challenges Persist-World Bank: Nepal has nearly eradicated extreme poverty over the past three decades, a success unmatched among its peers, according to the World Bank’s Nepal Country Economic Memorandum. The report credits migration and remittances for this achievement, with over 7% of Nepal’s population working abroad by 2023. However, structural challenges, weak exports, and slow hydropower development hinder economic growth. The World Bank urges policy reforms to boost investment, exports, and digitalization. Without action, Nepal’s growth could fall below 4% long-term. The government reaffirmed its commitment to reforms under its 16th Development Plan.

SEBON Increases Underwriting Limit for Bank- and Insurance-Owned Merchant Banks: The Securities Board of Nepal (SEBON) has revised the underwriting capacity for merchant banks owned by banks and insurance companies. These institutions can now underwrite securities up to their net worth, provided their parent banks or insurers guarantee liability coverage. Previously, the limit was three times their net worth, but this rule was not officially included in the Merchant Banker Regulations. SEBON spokesperson Niranjaya Ghimire confirmed that the regulations will soon be formally amended to reflect this change, expanding underwriting capacity for such institutions.

MPs Demand Removal of VAT on Airfare: Lawmakers have urged the government to remove VAT on airfare, citing high ticket prices as a reason Nepalese travelers opt for foreign airlines. In a parliamentary committee meeting, MP Uday Shamsher Rana noted that expensive airfare impacts tourism, while MP Prem Suwal criticized customs agents’ monopoly at airports. MPs also demanded upgrades to Janakpur Airport and higher capital expenditure in aviation.

Banking Offenses Lead Crime Statistics; Government Tightens Laws: Banking offenses accounted for 25.22% of crimes registered nationwide last month, with 1,127 out of 4,468 cases involving banking fraud, mainly cheque bounce incidents. Kathmandu Valley reported the highest crime rates, with a rise in social media-related offenses, according to Nepal Police.

In response, the government tightened banking laws in February, amending the Banking Offenses Act, 2064, to introduce stricter penalties for financial crimes. The revision aims to enhance banking security and boost public trust in financial institutions.

Kulekhani Hydropower Project Now Operating at Full Capacity: All three stations of the Kulekhani Hydropower Project in Makawanpur are now operating at full capacity as the dry season begins. Kulekhani I generates 60 MW, Kulekhani II 32 MW, and Kulekhani III 14 MW, according to project chief Taradatta Bhatta. The project, a run-of-river type, currently produces electricity for 14 to 16 hours daily, with the potential for 24-hour generation based on demand. In the first eight months of this fiscal year, Kulekhani I produced 81,209 MWh, more than doubling last year’s 34,388 MWh for the same period.

Massive Fire Destroys Sangrila Plywood Industry in Dang: A massive fire at Sangrila Plywood Industry in Ghorahi-9, Dang, has been burning for over 18 hours. Authorities struggled to control the flames due to flammable liquids inside. Eight fire trucks and 200 security personnel were deployed. The fire destroyed the entire six-bigha industry, marking Dang’s biggest industrial fire. Nearby settlements were saved, but the total damage is yet unknown.

Bonus Shares of MERO and SARBTM Listed in NEPSE: Mero Microfinance Laghubitta Bittiya Sanstha Ltd. (MERO) has listed 9,90,000 unit bonus shares in NEPSE. The company approved a 7.8947% dividend for FY 2080/81, including a 7.5% bonus share worth Rs. 9.90 crores and a 0.3947% cash dividend worth Rs. 52.10 lakhs. MERO’s LTP stands at Rs. 717.92. Similarly, Sarbottam Cement Limited (SARBTM) has listed 32,55,000 unit bonus shares in NEPSE after approving a 10% dividend, comprising 7% bonus shares worth Rs. 32.55 crores and a 3% cash dividend worth Rs. 13.95 crores. SARBTM’s LTP is Rs. 783.82.

Cybersecurity Experts Recommend Enhancements to Nepal’s E-Governance Blueprint 2081: NPCERT and CSRI Nepal have suggested key improvements to Nepal’s E-Governance Blueprint 2081, emphasizing cybersecurity, risk management, and digital infrastructure. NPCERT recommended a centralized oversight body, national data center, cybersecurity hub, and stronger data protection laws. CSRI Nepal stressed ethical digital services, rural internet expansion, AI/blockchain security, and updated cyber laws to align with global standards and enhance trust, efficiency, and coordination in e-governance.

Nepal Airlines to Lease Aircraft for International Expansion: Tourism Minister: Tourism Minister Badri Prasad Pandey announced plans to lease aircraft to enhance Nepal Airlines’ international operations. Speaking at a parliamentary committee meeting, he emphasized the urgent need for 10 wide-body and 10 narrow-body aircraft to meet passenger demand. He stated that discussions are in the final stage, and the government is preparing a new aviation policy to address industry challenges, including ticket pricing disparities.

Study Finds 1.8 Million Hectares in Nepal Suitable for Hemp Cultivation: A new study published in the Renewable & Sustainable Energy Reviews identifies 1.8 million hectares of land in Nepal as suitable for hemp cultivation, with 280,000 hectares meeting optimal conditions. The study highlights hemp’s economic, environmental, and energy benefits, estimating $7,273 profit per hectare. Nepal’s restrictive laws remain a barrier despite global legalization trends. Experts urge policy reforms to capitalize on hemp’s sustainability, biofuel potential, and industrial applications.

Real Estate Developers Form Urban Development Company for Joint Investment: Nepal’s real estate developers have decided to invest jointly through an Urban Development Company, aiming to revitalize the housing sector, according to the Nepal Land and Housing Developers’ Federation. The initiative has already raised Rs 100 million, with plans to attract foreign investment, including from South Korea and Dubai. Developers cite banking policies and government regulations as barriers to growth and warn against forced property auctions if reforms are not made. The company aims to develop large-scale housing projects and townships, addressing the capital limitations of existing firms.

Petroleum Imports Through Birgunj Reach Rs 122.2 Billion in Eight Months: Nepal imported petroleum products worth Rs 122.2 billion through the Birgunj border in the first eight months of the 2024/25 fiscal year, up Rs 1.67 billion from the same period last year. The imports include diesel, petrol, LPG, aviation turbine fuel, and kerosene. Revenue from petroleum imports also rose to Rs 50.13 billion, compared to Rs 44.80 billion last year. According to Birgunj Customs Office, diesel imports stood at 685,991 kiloliters, petrol at 290,382 kiloliters, and LPG at 210 million kg. Officials attribute the increase to ongoing infrastructure projects driving demand.

Gold Price Drops by Rs 600 Per Tola in Nepal: The price of hallmark gold in Nepal has decreased by Rs 600 per tola, settling at Rs 173,500 today, down from Rs 174,100 on Sunday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Meanwhile, silver prices remain unchanged at Rs 1,980 per tola.