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 Below 2,600 After Two Months, Trunover Surges: The Nepal Stock Exchange (NEPSE) plunged 2.19% (58.05 points) on March 25, closing at 2,582.73—its lowest level in over two months. The index, which had gained 0.99% in the previous session, has closed higher only twice in the last 16 trading days.

Despite the decline, trading activity surged, with turnover reaching Rs 5.18 billion, up from Rs 4.48 billion. Over 11 million shares were traded in 62,021 transactions.

All major indices closed in the red, with the Finance Index suffering the biggest loss at 3.50%. The Sensitive, Float, and Sensitive Float indices dropped by 1.90%, 2.20%, and 1.91%, respectively.

NCCD86 led gainers with a 4.52% rise, while NABBC fell the most, dropping 8.73%. Himalayan Reinsurance Limited (HRL) recorded the highest turnover, followed by NRIC and UMHL.

India Halts 350 MW Power Supply, Nepal Faces Increased Load-Shedding: India has stopped supplying 350 MW of electricity under the Project Steering Committee (PSC) agreement for the past four days, worsening load-shedding in Nepal’s industrial sector. Nepal has approval to import 450 MW, but India proposed limiting supply to solar hours from March 15 to June 30. Meanwhile, the Ministry of Energy sought clarification from former NEA MD Kulman Ghising for agreeing to higher power rates without ministry approval. The Cabinet dismissed him on Monday.

Private Sector Invests Rs 7.1 Billion in Nepal’s ICT Sector, Shows Strong Growth Potential: According to the World Bank’s latest report, Nepal’s private sector invested Rs 7.1 billion in the Information and Communication Technology (ICT) sector from 2017 to 2023, creating 6,746 jobs. The ICT sector is diverse, with small, medium, and large industries based on capital size. However, Nepal remains heavily dependent on imports for ICT goods and services, spending Rs 4.7 billion on internet bandwidth in 2023 alone, primarily from India and China.

The telecom, computer, and IT services sector makes up 10% of Nepal’s service exports, contributing 0.3% to GDP. Nepal ranks second in South Asia for IT service exports, with an annual growth rate of 11.6% from 2005 to 2023. Despite strong service export growth, Nepal lags in ICT goods production due to low foreign direct investment (FDI). The report suggests that increasing FDI could help boost Nepal’s ICT goods sector, as seen in China and Vietnam.

Nepal Securities Board Takes Strong Action Against Companies Misusing IPO for Profits:  The Nepal Securities Board (NSB), under the leadership of newly appointed Chairman Santosh Narayan Shrestha, has issued directives that will severely impact companies using Initial Public Offerings (IPOs) for profits rather than business operations. The directive mandates that two companies in the IPO pipeline, initially planning to issue shares at Rs 50 per unit, now have to revise it to Rs 100 per unit. These companies, including a hotel investment by MP Rajendra Bajgai, have been asked to call a special general meeting for approval. The board’s move also affects companies like Hathway Investment Nepal, where shares have risen to Rs 1284 per unit. The board aims to prevent companies from misleading the public and cornering the market by ensuring at least 20% of shares are sold in the IPO. This action is expected to secure investors’ interests and reduce unethical profit-making practices in the stock market.

Three Companies List Bonus Shares on Nepal Stock Exchange (NEPSE): Three companies—Sangrila Development Bank, Chilime Hydropower, and Supermai Hydropower—have listed their bonus shares on the Nepal Stock Exchange (NEPSE). Sangrila Development Bank listed 12,52,844 shares at a rate of 3.6516%, Chilime Hydropower listed 79,83,997 shares, and Supermai Hydropower listed 3,50,000 shares. Following this, the total number of shares for Sangrila Development Bank is now 3,55,62,568, Chilime Hydropower stands at 8,78,23,974, and Supermai Hydropower has 53,50,000 shares listed. The newly listed bonus shares will be tradable from tomorrow.

Government Officially Announces Removal Of Kulman Ghising: The government has officially announced ed of removed Kulman Ghising from his position as the Managing Director (MD) of Nepal Electricity Authority (NEA). Government spokesperson and Minister for Communications, Information, and Technology, Prithivi Subba Gurung, announced the decision on Tuesday following a Cabinet meeting. Despite earlier denials, the minister confirmed Ghising’s removal and the appointment of Hiteendra Dev Shakya from Lalitpur as the new MD. Ghising had faced repeated requests for clarification from the government, with Energy Minister Deepak Khadka criticizing him for not cooperating. Ghising, however, had questioned the government’s reasoning for his dismissal.

PM Oli Dismisses Kulman Ghising’s Sole Credit for Ending Load-Shedding: Prime Minister KP Sharma Oli stated that Nepal’s darkness did not disappear due to a single individual. He argued that load-shedding ended due to efforts by multiple governments and urged people not to believe otherwise.

At an event in Baluwatar on Tuesday, without naming Kulman Ghising, Oli sarcastically questioned, “Did he come carrying a lamp or a transmission line the day after his appointment?” He criticized the previous government for replacing one official with a retired individual.

Citing Laxmi Prasad Devkota’s epic Prometheus, Oli likened Pushpa Kamal Dahal to Prometheus, who stole fire from the gods. He argued that progress is a long-term effort, not a miraculous achievement, and warned against misconceptions.

RSP Condemns Government’s Decision to Remove Kulman Ghising: The Rastriya Swatantra Party (RSP) has strongly criticized the government’s decision to remove Nepal Electricity Authority’s MD, Kulman Ghising, calling it an act of “cowardice masked by arrogance.”

In Tuesday’s committee meeting, RSP MP Manish Jha accused the government of unnecessarily delaying dues collection and urged an immediate decision. MP Hari Dhakal also echoed the criticism, emphasizing Ghising’s popularity and efficiency. RSP has demanded the government reconsider its decision.

Kulman Ghising’s Dismissal Sparks Heated Debate in Parliamentary Committee: The dismissal of Nepal Electricity Authority’s Managing Director, Kulman Ghising, triggered a heated debate in the Public Accounts Committee. A day after the Cabinet’s decision, Maoist MP Amanlal Modi attempted to speak on the issue in Tuesday’s meeting.

Ruling party MPs opposed him, insisting he wait his turn. This led to a confrontation between the two sides. The debate initially escalated between Committee Chair Rishikesh Pokharel and Modi, with Rastriya Swatantra Party MPs backing Modi.

Agriculture Minister Promises Transparency in Subsidy Distribution: Agriculture and Livestock Development Minister Ramnath Adhikari acknowledged past irregularities in agricultural subsidies but assured that the process would now be transparent. Speaking at an investment conference organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Adhikari stated that the Ministry had begun publishing details of subsidies, ensuring future transparency. Over the past five years, Rs. 105 billion was spent on agricultural subsidies. He also emphasized that achieving self-reliance in agriculture requires efforts from all sectors, with the private sector playing a key role in meeting government goals.

Flights Resume at Taksar Airport After Three-Month Suspension: Flights at Taksar Airport in Bhojpur have resumed after a three-month hiatus due to maintenance on the twin-otter aircraft. Nepal Airlines Corporation (NAC) restarted services on Tuesday, with a new flight schedule for the district. The airport, serving only NAC, faced disruptions, especially for patients and travelers. One aircraft is fully repaired, while the second is under maintenance. Normal operations are expected once both aircraft are ready.

Nabil CEO Gyanendra Dhungana Resigns, Sparks NRB Governor Speculation: Gyanendra Dhungana, CEO of Nabil Bank, has resigned, fueling speculation that he may be appointed as the next Governor of Nepal Rastra Bank (NRB). His resignation comes just weeks before the current Governor, Maha Prasad Adhikari’s term ends. A selection committee, led by Deputy Prime Minister Bishnu Paudel, has been formed to choose the new governor. Nabil Bank is primarily promoted by Nepali Congress lawmaker Binod Chaudhary’s company.

Gold Price Drops by Rs 200 per Tola, Silver Remains Stable: The price of gold has decreased by Rs 200 per tola, now priced at Rs 173,300, down from Rs 173,500 on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Meanwhile, the price of silver remains unchanged at Rs 1,980 per tola today.