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 Gains 41.43 Points, Continues Upward Momentum: The Nepal Stock Exchange (NEPSE) surged 41.43 points (1.58%) to close at 2,663.30, extending its upward trend after a 39.13-point rise in the previous session. The index fluctuated between 2,621.46 and 2,666.17, with a total turnover of Rs. 5.22 Arba from 55,442 transactions involving 309 companies. Himalayan Reinsurance Limited (HRL) led turnover at Rs. 51.18 Crores, closing at Rs. 1,020.10 per share. Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) was the top gainer, jumping 10%, while Kumari Sabal Yojana (KSY) fell the most, dropping 1.82%. Sector-wise, the Trading Index led with a 6.09% gain, while the Mutual Fund Index saw the smallest rise at 0.37%.

India to Supply Additional 600 MW to Nepal, Ensuring Evening Power Supply: India has approved an additional 600 MW of electricity to Nepal during evening hours (6 PM to 11 PM) via the Dhalkebar-Muzaffarpur transmission line, starting April 1. This adds to the existing 1,004 MW provided during solar hours. Energy Minister Khadka assured uninterrupted power supply, dismissing load-shedding rumors. The move follows Nepal’s request to address dry-season shortages, with officials welcoming India’s support as a crucial step toward energy stability.

Ministry of Finance Discusses Budget Priorities with 16 Ministries: The Ministry of Finance has held discussions with 16 ministries regarding the budget for the fiscal year 2082/083. In a meeting with the Ministry of Culture, Tourism, and Civil Aviation, Finance Minister Vishnu Prasad Paudel emphasized prioritizing policy shifts over budget figures. He highlighted the importance of federalism, the role of all three levels of government, and the transfer of federal programs to local levels. Paudel urged focusing on essential programs, avoiding smaller projects under Rs 3 million, and presenting realistic proposals to ensure an efficient and practical budget.

Birgunj Imports Surge Past Rs 390 Billion in First Eight Months of Fiscal Year: Birgunj Customs recorded imports worth over Rs 390 billion in the first eight months of the current fiscal year, marking an 11.40% increase from last year. Petroleum products led the imports at Rs 122 billion, followed by raw soybean oil (Rs 29.29 billion) and iron materials (Rs 22.51 billion). Machinery imports reached Rs 21.67 billion, while motor vehicle imports rose to Rs 11.68 billion. Chief Customs Administrator Dipak Lamichhane attributed the rise to increased demand for fuel, vehicles, and industrial materials.

Rapid Increase in Blacklisted Individuals in Nepal’s Banking Sector Amid Loan Recovery Struggles: In the first eight months of the current fiscal year, 37,523 individuals were blacklisted for non-repayment of loans, according to the Credit Information Center (CIB). This marks a significant rise compared to last year’s figure of 33,276. Over the past seven years, the number of blacklisted individuals has increased dramatically, from just 1,310 annually in 2075 B.S. to over 37,000. With more than 110,000 individuals on the blacklist, experts warn that without strategic interventions from the government and regulators, the banking sector’s liquidity and profitability may continue to face challenges.

NRB Conducts On-site Inspections of 19 Commercial Banks in Last Fiscal Year: In the last fiscal year, the Nepal Rastra Bank (NRB) carried out on-site inspections of 19 commercial banks. The NRB’s Banking Supervision Department released a report detailing inspections conducted across various banks each quarter. Inspections were carried out at banks such as Rastriya Commercial Bank, Sanima Bank, Nepal SBI Bank, and others in the first quarter, and further inspections included banks like Machhapuchchhre Bank, Siddhartha Bank, and Everest Bank in subsequent quarters. Special supervision was also conducted for specific banks, including Nabil Bank, Nepal Investment Mega Bank, and Laxmi Bank.

Supreme Court to Hear Petitions from Both Ghising and Shakya on NEA Leadership Dispute: Following the government’s removal of Kulman Ghising and appointment of Hitendra Dev Shakya as Nepal Electricity Authority’s (NEA) executive director, both have filed separate petitions at the Supreme Court. Ghising claims his dismissal was illegal and seeks reinstatement, while Shakya argues that his previous transfer was unjust and demands overdue benefits. The court has scheduled an initial hearing for Friday. The dispute traces back to 2021, when Ghising replaced Shakya at NEA, leading to prolonged legal battles.

NEA Approves 5,000 MW Power Purchase Agreements, Introduces Key Initiatives: On the day of Hitendra Dev Shakya’s appointment as Executive Director, Nepal Electricity Authority (NEA) decided to open Power Purchase Agreements (PPAs) for 5,000 MW. The board also approved a white paper on NEA’s financial status, issued a 50% discount on electricity charges for low-income households, and planned to import electricity from India to prevent load shedding. The roadmap allocates capacities to various hydropower projects and aims to address power shortages, with plans to increase electricity imports from India despite higher costs.

Employee Unions Raise Concerns Over NEA’s Power Purchase Agreement and Discount Decisions: Two employee unions, the Nepal Electricity Authority (NEA) Welfare Council and the National Employees Union, have raised concerns over the NEA’s recent decisions regarding power purchase agreements (PPAs). The unions highlighted that the NEA opened PPAs for 4,800 MW capacity without properly assessing financial risks, market certainty, or risk mitigation strategies. Additionally, they objected to a decision to offer a 50% discount on demand charges for domestic customers consuming up to 20 units. The unions pointed out the lack of financial compensation from the government for various subsidies provided to different sectors, which has negatively impacted NEA’s cash flow. They called for the government to ensure financial support if the NEA faces losses due to these decisions, warning that without such assurances, the implementation of these policies could lead to financial instability for the authority.

Bad Loans of Karnali Development Bank Soar Above 60%; Janaki and Pokhara Finance in Crisis: Karnali Development Bank’s non-performing loans have exceeded 60% as of mid-January 2025, triggering management by Nepal Rastra Bank. The central bank has appointed a team to oversee operations, focusing on recovering bad loans. Meanwhile, Janaki and Pokhara Finance are facing crises, with Janaki’s capital adequacy ratio at -0.16% and bad loans at 40.89%, while Pokhara’s ratio is at -3.08% with bad loans at 33.44%. Nepal Rastra Bank is monitoring their financial health but has not yet classified them as problematic.

Nepal Secures Rs 4.83 Billion from Carbon Trading for Sustainable Energy Projects: Nepal has raised Rs 4.83 billion through carbon trading, as announced by Nawa Raj Dhakal, Executive Director of the Alternative Energy Promotion Centre (AEPC). The announcement was made during an event titled “Carbon Financing in Energy Projects: Opportunities for Investment” in Kathmandu. Energy Minister Deepak Khadka emphasized using carbon revenue to support marginalized communities with solar energy. He also highlighted the importance of the ‘Energy Development Guideline and Action Plan 2081’ and the ‘Renewable Energy and Energy Efficiency Bill’.

Nepal Faces Trade Deficit with Bangladesh, Imports Rs 2.97 Billion: Nepal imported goods worth Rs 2.97 billion from Bangladesh in the first eight months of the current fiscal year, with raw jute being the highest import at Rs 1.6 billion. Exports from Nepal to Bangladesh were valued at Rs 276.85 million, including herbs, household items, and animal feed. Kakarbhitta’s trade figures revealed a significant imbalance, prompting Subash Pandey of the Nepal Transport and Warehouse Management Company to suggest electricity exports as a potential solution to balance the deficit.

8th International Women’s Trade Expo 2025 Kicks Off in Lalitpur with Focus on Local Entrepreneurship: The 8th International Women’s Trade Expo 2025, organized by the Federation of Women Entrepreneurs’ Associations of Nepal (FWEAN), began on March 27 at Heritage Garden, Lalitpur. Prime Minister KP Sharma Oli inaugurated the event and marked the occasion with a sketch. The expo honored Anuradha Koirala, Prem Kumari Pun, and Rajendra Singh for their societal contributions. With the slogan “Eat Local, Wear Local, and Support Local Entrepreneurship,” FWEAN showcases innovations from women entrepreneurs across 72 district associations. The five-day event fosters networking and business opportunities for women.

PM Oli Stresses Women’s Role in Development, Vows Unhindered Progress: Prime Minister KP Sharma Oli emphasized the need to advance society and accelerate national development while addressing the Eighth International Women’s Trade Fair in Lalitpur. Organized by the Federation of Women Entrepreneurs’ Association of Nepal, the event highlighted women’s contributions to business. PM Oli criticized efforts to hinder progress, noting that 97% of people still lack electricity access. He praised the younger generation’s role in technology and urged women to embrace entrepreneurship, stating that national development is impossible without their active participation.

SEBON Approves New Merger and Acquisition Directive to Help Brokerage Firms Meet Capital Requirements: The Securities Board of Nepal (SEBON) has approved a new directive to assist broker companies in meeting capital requirements through mergers and acquisitions. The directive, aimed at easing the pressure on firms facing mandatory capital increases starting from fiscal year 2025/26, is expected to be implemented soon. Currently, 38 brokerage firms have not met the required capital thresholds. Many companies have opted for mergers, while others are fulfilling capital requirements using reserve funds to issue bonus shares.

New Aluminum Rod Manufacturing Plant Opens in West Nawalparasi with Rs. 4 Billion Investment: A new aluminum rod manufacturing company has started operations in Hakkuhi, Ramgram-16, West Nawalparasi. Litmus Industries aims to produce electricity cables, wires, and conductors, reducing reliance on imported materials. The industry, with an investment of Rs. 4 billion, was inaugurated by Secretary of the Ministry of Industry, Commerce, and Supplies, Krishna Bahadur Raut. The plant has a capacity to produce 20,000 tons of rods annually, while domestic demand is 8,000 tons. The industry aims to reduce imports and eventually export. It employs over 100 workers.

Nepal Rastra Bank Establishes ‘Digital Finance Innovation Hub’: Nepal Rastra Bank has set up the Digital Finance Innovation Hub under its Payment Systems Department to support financial innovators. The hub aims to provide regulatory guidance, analyze opportunities and challenges, and enhance access to policymakers. It will facilitate coordination between regulatory bodies, private sector stakeholders, and innovators, ensuring compliance with legal standards. With rapid advancements in digital finance, the hub seeks to prevent regulatory hurdles that hinder startups and young entrepreneurs, offering advisory support and process facilitation.

TIA Runway Repairs Won’t Halt Flights, Two New Airlines to Start Operations: Tribhuvan International Airport (TIA) will undergo taxiway repairs from April 1 without halting flights, unlike previous nighttime runway closures. With the summer schedule starting, TIA will operate from 6 AM to midnight daily, extending operational hours to 18 per day. Two new international airlines, Air India Express and SpiceJet, will begin flights, with Cathay Pacific increasing its frequency to daily. Though taxiway repairs will take up to two years, flight operations will continue uninterrupted, ensuring smoother air travel.

Gold Price Rises by Rs 1,300 Per Tola, Silver Up by Rs 30: The price of gold in Nepal’s domestic market surged by Rs 1,300 per tola today, reaching Rs 174,800, up from Rs 173,500 on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver also saw a price increase of Rs 30 per tola, now priced at Rs 2,020. The rise reflects ongoing market fluctuations and global trends impacting precious metal rates.