KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on Nepal’s key economic update. Here are today’s top economic news update:

Insurance Coverage in Nepal Expands to 44.17% of Population, but Reach Shrinks Slightly:

As of the end of the 2081/82 fiscal year, 44.17% of Nepal’s population is covered by insurance, including life insurance for temporary, short-term, and foreign employment. This represents a slight increase from 43.16% in the previous year. However, when excluding these specific categories, only 16.57% of the population has insurance coverage, showing a minor decline from last year’s 17.04%. Insurance companies have expanded their networks and staff, but the overall reach has seen only a modest improvement. The total premium collected by life and non-life insurance companies in the fiscal year exceeded NPR 138 billion, marking a 10.56% increase from last year. Despite growth in business volume, the overall insurance coverage remains limited.

Reforming Gold Quota Systema-Nepal Rastra Bank Panel Suggests Overhaul:

To curb irregularities in Nepal’s gold quota and recommendation system, a high-level committee led by Nepal Rastra Bank (NRB) has proposed distributing gold based on daily sales or tax payments instead of the current recommendation-based system. The committee, including representatives from the Finance and Commerce Ministries, the Bankers’ Association, and business federations, aims to enhance transparency in gold imports and sales. The current system limits daily gold imports to 20 kg, with quotas allocated to specific trade bodies. However, rising recommendation fees and delays have fueled inefficiencies. The Ministry of Industry, Commerce, and Supplies will finalize reforms after stakeholder consultations.

Butwal-Pokhara Road Set for Major Upgrade:

The 157.95 km Butwal-Pokhara road, part of the Siddhartha Highway, is set for a major upgrade at an estimated cost of Rs 19.75 billion. The project includes viaducts and tunnels worth Rs 9.37 billion to address long-term infrastructure challenges. Stretching across Rupandehi, Palpa, Syangja, and Kaski, the road will be widened to 50 meters, with a two-lane blacktop carriageway, shoulders, and drainage systems. The upgrade will impact multiple municipalities, requiring the removal of 2,982 trees and affecting 355 households. The four-year project aims to improve connectivity between the Terai and hilly regions, enhancing Nepal’s transport infrastructure.

NHRC and ILO Sign Pact to Strengthen Labor Rights in Nepal:

The National Human Rights Commission of Nepal (NHRC) and the International Labour Organization (ILO) have signed a five-year agreement to promote and protect fundamental labor rights in Nepal. NHRC Secretary Murari Prasad Kharel and ILO Nepal Chief Numan Ozkan signed the memorandum, which aims to enhance fair labor practices, social justice, and sustainable economic growth. The agreement focuses on monitoring labor rights violations, strengthening enforcement, and collaborating with foreign human rights bodies to safeguard Nepali migrant workers. Both institutions emphasized that labor rights are human rights and pledged to work together to ensure dignified employment for all.

Litmus Industries Launches Nepal’s First Aluminum Rod Plant:

Litmus Industries Limited has inaugurated Nepal’s first aluminum rod manufacturing plant under its new initiative, Litmus 2.0. Located in Ramgram, Hakui of Nawalparasi, the facility aims to reduce Nepal’s dependence on aluminum rod imports, which are crucial for the wires, cables, and conductors sector. A furnace firing ceremony was held on Wednesday to mark the plant’s launch. Litmus Industries stated that localized production will help cut the trade deficit, retain revenue, and develop technical expertise. The initiative is seen as a strategic milestone, expected to attract investments and strengthen Nepal’s industrial and economic landscape.

Chaite Paddy Cultivation Expands Rapidly in Dhanusha:

The cultivation of chaite paddy in Dhanusha is increasing every year as farmers turn to this high-yield variety for its resilience against pests, favorable irrigation conditions, and better productivity compared to seasonal paddy.
Local farmers, like Munaji Yadav of Haripur, report a significant rise in plantation, with fields previously used for wheat now being repurposed for chaite paddy. Despite irrigation challenges, many farmers have invested in tube wells, while others rely on canals from the Ratu River. Officials estimate over 5,000 hectares will be cultivated this season, aided by government seed subsidies and growing farmer interest.

Business Federations Condemn Tinkune Violence, Demand Action:

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Federation of Nepali Industry and Entrepreneurship have strongly condemned the violence in Tinkune on Friday, calling for strict action against those responsible and compensation for damages. In separate statements, both organizations stressed that while peaceful protests are a democratic right, they must not infringe upon citizens’ and businesses’ ability to operate. Expressing serious concern over vandalism, looting, and arson, they urged the government to act decisively. They also called on industrialists and entrepreneurs to unite in protecting the republic and economic stability.

KMC Fines Former King Gyanendra for Protest Damage:

Kathmandu Metropolitan City (KMC) has fined former King Gyanendra Shah Rs 793,000 for damages caused during Friday’s pro-monarchy demonstration in Tinkune. According to a KMC press release, the fines include Rs 100,000 each for pollution in six locations, Rs 130,000 for vandalizing fire brigades, and Rs 63,000 for damaging railings, plants, trees, and traffic islands. The protest, led by royalists, resulted in significant public and private property damage. KMC’s action signals a firm stance against protest-related destruction, holding Shah accountable for the disturbances caused under his supporters’ banner.

Government Weighs Action Against Former King and Durga Prasai:

The government is deliberating on action against former King Gyanendra Shah, accusing him of inciting Durga Prasai and his group into violent protests. Sources suggest discussions are ongoing, with pressure from opposition parties to take legal steps against the former monarch. Royalist groups attacked the Unified Socialist Party office and attempted arson at the UML office, while Rastriya Swatantra Party leader Santosh Pariyar’s vehicle was torched. The government is reportedly preparing to strip Gyanendra of state privileges, revoke his passport, and tighten security to prevent him from fleeing abroad amid rising unrest. Police are actively searching for Prasai.

Former King Gyanendra Shah Refuses to Pay Fine for Destruction During Protests in Threenkune:

Former King Gyanendra Shah has refused to pay a fine imposed by the Kathmandu Metropolitan City for damages during a protest in Threenkune on Friday. The fine was related to the destruction of public property, including trees, railings, and street pollution. The mayor’s office, led by Mayor Balen Shah, issued the fine, but Shah’s close associates questioned its legitimacy, suggesting it was a political stunt. The protest, organized by the ‘Joint People’s Movement Coordination Committee’ led by Nawaraj Suvedi, led to significant damage and chaos. While the mayor imposed a fine, Shah’s refusal to pay raises legal and ethical concerns.

Koteshwor Bhatbhateni Reopens After Looting by Royalist Protesters:

The Koteshwor branch of Bhatbhateni Supermarket has resumed operations following Friday’s looting by royalist protesters. According to COO Panu Paudel, the store reopened after overnight cleaning, with damage assessment and glass repairs expected in the coming days.
During the protests in Tinkune, an unruly group stormed the supermarket, looting mobile phones, watches, expensive liquor, clothing, fruits, and other items. The building also sustained damage from bricks and stones. Bhatbhateni expressed confidence that the government will soon bring those responsible to justice and take legal action against the perpetrators.