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 29.82 Points, Closes at 2,693.12 Amid Strong Turnover: The Nepal Stock Exchange (NEPSE) advanced by 29.82 points (1.11%) to settle at 2,693.12, continuing its upward trend after a 41.43-point rise in the previous session. The index fluctuated between an intraday high of 2,718.95 and a low of 2,657.88, with a total turnover of Rs. 7.56 Arba. Himalayan Reinsurance Limited (HRL) led with Rs. 69.19 Crores in trades, closing at Rs. 1,039 per share. Joshi Hydropower Development Company Ltd (JOSHI) surged 9.94%, topping the gainers’ list, while Prabhu Smart Fund (PRSF) saw the steepest drop of 5.79%. Sectorally, the Investment Index rose 2.18%, while the Trading Index fell 0.26%.

Nepal to Complete Loan Portfolio Review of 10 Major Banks by End of 2025- IMF Condition: Nepal has pledged to complete a loan portfolio review of its 10 largest commercial banks by December 2025, as part of a commitment to the International Monetary Fund (IMF) for approval of the Extended Credit Facility (ECF). The review will assess loan classification, provisioning, and compliance with regulations, and will be conducted by an international auditor. Despite an earlier failed attempt to appoint an auditor, the review will begin by May 2025. The process aims to address concerns over rising non-performing loans (NPLs) and will provide insights into the financial health of Nepal’s banking sector.

India Approves Additional 600 MW Electricity Import, Relieving Load Shedding in Eastern Industrial Corridor: With India’s approval for an additional 600 MW electricity import via the Indian Energy Exchange (IEEX), load shedding in the eastern industrial corridor of Sunsari-Morang has reduced to 6 hours. Previously, industries had faced up to 12 hours of daily power cuts, which significantly impacted production. As a result of this relief, industries have been able to reduce production cuts from 70% to 50%. The reduction in load shedding began on Saturday, offering a welcome respite for industries like Reliance Spinning, which had suffered severe disruptions. Nepal Electricity Authority plans to continue efforts to eliminate load shedding entirely.

Insurance Authority to Introduce Guidelines to Prevent Misuse of Employee Training Funds: The Nepal Insurance Authority is preparing to introduce new guidelines to prevent insurance companies from misusing funds allocated for employee capacity-building. Currently, insurers set aside 2% of their profits for employee training, but reports suggest these funds are often diverted elsewhere. In response to growing complaints from employees and concerns over weak monitoring, the Authority is working on stricter regulations. The new guidelines aim to ensure that allocated funds are used for their intended purpose, reducing arbitrary spending by insurance companies. The directive is expected to improve accountability and transparency in the sector.

Supreme Court Issues Temporary Interim Order on Pathibhara Cable Car Project: The Supreme Court of Nepal has issued a temporary interim order to maintain the status quo on the ongoing construction of the Pathibhara Cable Car project in Taplejung. The order, issued by a bench led by Justice Sharanga Suvedi on 13th Chaitra, was made public on Sunday. The court has summoned both parties involved in the case for further discussions on 26th Chaitra. The order follows a petition filed by Yam Bahadur Limbu, who sought a halt to the project. Senior advocates participated in the case, and the court instructed concerned authorities to submit written responses within 15 days.

Decrease in Loan Disbursement as Banks Focus on Loan Recovery Amid Economic Slowdown: In the month of Chait, Nepal’s commercial banks prioritized loan recovery over loan disbursement, leading to a reduction in credit flow. The disbursement of loans significantly dropped from NPR 23 billion in Falgun to just NPR 7 billion in Chait. The focus on recovering bad loans and maintaining capital reserves, amidst economic sluggishness, has led to this decline. Although banks are actively working to resolve bad debts and address capital issues, the overall loan disbursement has been low. However, there are signs of economic recovery, with growth observed in sectors like construction and wholesale trade, which may ease loan recovery pressure in the future.

Minister Poudel Introduces 1% Revenue Contribution to Boost Health Insurance Fund: On March 30, Minister for Health and Population, Pradeep Poudel, announced a new provision requiring Federal Hospital Development Committees (HDCs) to contribute 1% of their total revenue to the Health Insurance Fund. This decision aims to activate the fund, which has remained dormant despite its inclusion in the Health Insurance Act. With approval from the Ministry of Finance, the Health Insurance Board will now have more financial resources to support the National Health Insurance Program. Further reforms are also in progress to enhance the program’s effectiveness. The move is expected to strengthen the fund’s long-term sustainability.

Nepal Securities Board Issues Merger and Acquisition Guidelines for Securities Firms: The Nepal Securities Board has released new guidelines for the merger, acquisition, or consolidation of securities firms, under the Securities Act, 2063. These guidelines require securities firms to seek a theoretical agreement from the board within 15 working days after submitting the necessary documents. The firms must conduct a due diligence audit by an independent evaluator and provide a business valuation based on assets, liabilities, and future cash flows. The final merger agreement must address issues such as ownership structure, employee benefits, capital structure, and grievance management. The process must be completed within six months of the initial agreement.

NRB Governor Emphasizes the Need for Sensitivity in Reporting Financial Sector News: Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, stressed the importance of understanding the sensitivity of the financial sector during the inauguration of a two-day interaction program organized by NRB and the Nepal Economic Journalists’ Association (NAFIJ) in Kathmandu. He urged the media to base their news on facts and truth to avoid negative perceptions among citizens. Adhikari highlighted the role of journalists in shaping public opinion through accurate reporting. NRB officials also emphasized the impact of accurate financial information on public trust and the economy. The program aims to enhance the capacity of economic journalists.

Nepal’s IT Industry Showcased at First International Roadshow in the U.S.: The Confederation of Nepalese Industries (CNI), in partnership with AmCham Nepal, organized Nepal’s first international roadshow for its IT and IT-enabled services (ITES) sector in the United States. The event, titled ‘Tech Peak Nepal: Orlando 2025,’ featured Nepal’s IT capabilities at the Shared Services and Outsourcing Week (SSOW) Conference 2025, the world’s largest outsourcing event. Six Nepali tech companies—Sakchha, Innovate Tech, F1Soft, Simjung, Cynical Technology, and Monal Tech—showcased their innovative solutions alongside global industry leaders. The roadshow highlighted Nepal’s skilled workforce, cost-efficiency, and potential for IT outsourcing investments, marking a significant milestone for the country’s ITES sector.

Karnali River Bridge Construction Delayed, Only 30% of Work Completed: Construction of the bridge over the Karnali River, connecting Himali Rural Municipality in Bajura and Khatyad Rural Municipality in Mugu, has only reached 30% completion after three years. Kusheshwar Construction Pvt. Ltd. began work in 2021 with a contract to finish the 105-meter-long concrete bridge by December 2024 for Rs. 144.9 million. Delays, including prolonged government procedures and challenging monsoon conditions, have pushed the deadline to mid-April 2025. The bridge will ease travel and trade between Bajura, Mugu, and Rara once completed, replacing the current Bailey bridge. The project is funded by the Karnali Province government.

Karnali Academy of Health Sciences Approves 50-Bed Satellite Hospital in Dailekh: The 11th senate meeting of the Karnali Academy of Health Sciences (KAHS) approved a plan to establish a 50-bed satellite hospital in Rakam Karnali, Aathabis Municipality, Dailekh district. The meeting, held at the Prime Minister’s Office, also discussed implementing the government’s decision to upgrade 15 hospitals to 50-bed facilities. The hospital will submit proposals for infrastructure development, human resource management, and resource assurance. Prime Minister KP Sharma Oli, who is also the Chancellor of KAHS, urged fast-paced cooperation with stakeholders. The meeting also saw the appointment of new KAHS Senate Members. Minister Pradip Paudel and other officials were present.

Minister Prithvi Subba Gurung Urges Local Connectivity and Collaboration to Achieve Digital Nepal Framework Goals: Minister for Communications and Information Technology, Prithvi Subba Gurung, emphasized the importance of enhancing local connectivity to achieve the goals of the Digital Nepal Framework. At a thematic committee meeting, he called for universal access to electricity, telephone, and internet at local levels, and stressed the role of Ministry bodies in building this foundation. The Minister highlighted the extension of the Government Integrated Office Management System (GIOMS), controlling advertisement leakage, digitalizing postal services, and improving broadband services, particularly in earthquake-affected districts. He also urged local governments to avoid imposing additional tax burdens on infrastructure development. Secretary Radhika Aryal stressed policy coordination at all levels.

NIC Asia Bank Announces Public Offering of 7% Debenture 2091, Aims to Raise Rs. 5 Arba: NIC Asia Bank Limited (NICA) has announced the issuance of 50,00,000 units of “7% NIC Asia Debenture 2091” to the public. The 10-year debenture, with a coupon rate of 7%, will be open for applications from 25th to 28th Chaitra, 2081, with the possibility of extension until 8th Baishakh 2082 if not fully subscribed. The total issue is worth Rs. 5 Arba, with 30 lakh units offered via private placement and 20 lakh units, worth Rs. 2 Arba, open to the public. Mutual funds will receive 1 lakh units. Prabhu Capital Limited is the issue manager, and investors can apply for a minimum of 25 units.

Gold Prices Hit Record High in Nepal, Fine Gold Reaches Rs. 1,76,800 per Tola: Gold prices in Nepal reached an all-time high, with fine gold soaring to Rs. 1,76,800 per tola, up Rs. 600 from the previous day’s rate of Rs. 1,76,200. This historic rise reflects strong momentum and increasing demand. Similarly, Tejabi gold prices rose to Rs. 1,76,100 per tola, from Rs. 1,75,500 the day before. These price hikes have surpassed the previous record of Rs. 1,76,200 per tola set on March 28, 2025. According to the Federation of Nepal Gold and Silver Dealers’ Association, the market continues to experience strong upward pressure, driven by robust domestic and international demand.

Supreme Court Issues Temporary Interim Order on Pathibhara Cable Car Project: The Supreme Court of Nepal has issued a temporary interim order to maintain the status quo on the ongoing construction of the Pathibhara Cable Car project in Taplejung. The order, issued by a bench led by Justice Sharanga Suvedi on 13th Chaitra, was made public on Sunday. The court has summoned both parties involved in the case for further discussions on 26th Chaitra. The order follows a petition filed by Yam Bahadur Limbu, who sought a halt to the project. Senior advocates participated in the case, and the court instructed concerned authorities to submit written responses within 15 days.

Decrease in Loan Disbursement as Banks Focus on Loan Recovery Amid Economic Slowdown: In the month of Chait, Nepal’s commercial banks prioritized loan recovery over loan disbursement, leading to a reduction in credit flow. The disbursement of loans significantly dropped from NPR 23 billion in Falgun to just NPR 7 billion in Chait. The focus on recovering bad loans and maintaining capital reserves, amidst economic sluggishness, has led to this decline. Although banks are actively working to resolve bad debts and address capital issues, the overall loan disbursement has been low. However, there are signs of economic recovery, with growth observed in sectors like construction and wholesale trade, which may ease loan recovery pressure in the future.

Minister Poudel Introduces 1% Revenue Contribution to Boost Health Insurance Fund: On March 30, Minister for Health and Population, Pradeep Poudel, announced a new provision requiring Federal Hospital Development Committees (HDCs) to contribute 1% of their total revenue to the Health Insurance Fund. This decision aims to activate the fund, which has remained dormant despite its inclusion in the Health Insurance Act. With approval from the Ministry of Finance, the Health Insurance Board will now have more financial resources to support the National Health Insurance Program. Further reforms are also in progress to enhance the program’s effectiveness. The move is expected to strengthen the fund’s long-term sustainability.

Nepal Securities Board Issues Merger and Acquisition Guidelines for Securities Firms: The Nepal Securities Board has released new guidelines for the merger, acquisition, or consolidation of securities firms, under the Securities Act, 2063. These guidelines require securities firms to seek a theoretical agreement from the board within 15 working days after submitting the necessary documents. The firms must conduct a due diligence audit by an independent evaluator and provide a business valuation based on assets, liabilities, and future cash flows. The final merger agreement must address issues such as ownership structure, employee benefits, capital structure, and grievance management. The process must be completed within six months of the initial agreement.

NRB Governor Emphasizes the Need for Sensitivity in Reporting Financial Sector News: Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, stressed the importance of understanding the sensitivity of the financial sector during the inauguration of a two-day interaction program organized by NRB and the Nepal Economic Journalists’ Association (NAFIJ) in Kathmandu. He urged the media to base their news on facts and truth to avoid negative perceptions among citizens. Adhikari highlighted the role of journalists in shaping public opinion through accurate reporting. NRB officials also emphasized the impact of accurate financial information on public trust and the economy. The program aims to enhance the capacity of economic journalists.

Nepal’s IT Industry Showcased at First International Roadshow in the U.S.: The Confederation of Nepalese Industries (CNI), in partnership with AmCham Nepal, organized Nepal’s first international roadshow for its IT and IT-enabled services (ITES) sector in the United States. The event, titled ‘Tech Peak Nepal: Orlando 2025,’ featured Nepal’s IT capabilities at the Shared Services and Outsourcing Week (SSOW) Conference 2025, the world’s largest outsourcing event. Six Nepali tech companies—Sakchha, Innovate Tech, F1Soft, Simjung, Cynical Technology, and Monal Tech—showcased their innovative solutions alongside global industry leaders. The roadshow highlighted Nepal’s skilled workforce, cost-efficiency, and potential for IT outsourcing investments, marking a significant milestone for the country’s ITES sector.

Karnali River Bridge Construction Delayed, Only 30% of Work Completed: Construction of the bridge over the Karnali River, connecting Himali Rural Municipality in Bajura and Khatyad Rural Municipality in Mugu, has only reached 30% completion after three years. Kusheshwar Construction Pvt. Ltd. began work in 2021 with a contract to finish the 105-meter-long concrete bridge by December 2024 for Rs. 144.9 million. Delays, including prolonged government procedures and challenging monsoon conditions, have pushed the deadline to mid-April 2025. The bridge will ease travel and trade between Bajura, Mugu, and Rara once completed, replacing the current Bailey bridge. The project is funded by the Karnali Province government.

Karnali Academy of Health Sciences Approves 50-Bed Satellite Hospital in Dailekh: The 11th senate meeting of the Karnali Academy of Health Sciences (KAHS) approved a plan to establish a 50-bed satellite hospital in Rakam Karnali, Aathabis Municipality, Dailekh district. The meeting, held at the Prime Minister’s Office, also discussed implementing the government’s decision to upgrade 15 hospitals to 50-bed facilities. The hospital will submit proposals for infrastructure development, human resource management, and resource assurance. Prime Minister KP Sharma Oli, who is also the Chancellor of KAHS, urged fast-paced cooperation with stakeholders. The meeting also saw the appointment of new KAHS Senate Members. Minister Pradip Paudel and other officials were present.
Minister Prithvi Subba Gurung Urges Local Connectivity and Collaboration to Achieve Digital Nepal Framework Goals:
Minister for Communications and Information Technology, Prithvi Subba Gurung, emphasized the importance of enhancing local connectivity to achieve the goals of the Digital Nepal Framework. At a thematic committee meeting, he called for universal access to electricity, telephone, and internet at local levels, and stressed the role of Ministry bodies in building this foundation. The Minister highlighted the extension of the Government Integrated Office Management System (GIOMS), controlling advertisement leakage, digitalizing postal services, and improving broadband services, particularly in earthquake-affected districts. He also urged local governments to avoid imposing additional tax burdens on infrastructure development. Secretary Radhika Aryal stressed policy coordination at all levels.

NIC Asia Bank Announces Public Offering of 7% Debenture 2091, Aims to Raise Rs. 5 Arba: NIC Asia Bank Limited (NICA) has announced the issuance of 50,00,000 units of “7% NIC Asia Debenture 2091” to the public. The 10-year debenture, with a coupon rate of 7%, will be open for applications from 25th to 28th Chaitra, 2081, with the possibility of extension until 8th Baishakh 2082 if not fully subscribed. The total issue is worth Rs. 5 Arba, with 30 lakh units offered via private placement and 20 lakh units, worth Rs. 2 Arba, open to the public. Mutual funds will receive 1 lakh units. Prabhu Capital Limited is the issue manager, and investors can apply for a minimum of 25 units.

Gold Prices Hit Record High in Nepal, Fine Gold Reaches Rs. 1,76,800 per Tola: Gold prices in Nepal reached an all-time high, with fine gold soaring to Rs. 1,76,800 per tola, up Rs. 600 from the previous day’s rate of Rs. 1,76,200. This historic rise reflects strong momentum and increasing demand. Similarly, Tejabi gold prices rose to Rs. 1,76,100 per tola, from Rs. 1,75,500 the day before. These price hikes have surpassed the previous record of Rs. 1,76,200 per tola set on March 28, 2025. According to the Federation of Nepal Gold and Silver Dealers’ Association, the market continues to experience strong upward pressure, driven by robust domestic and international demand.