KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Chudamani Chapagain’s appointment as NEPSE’s CEO follows controversy over the initial selection, reflecting governance concerns in Nepal’s financial sector.
Meanwhile, economic indicators show mixed trends: the NEPSE index declined amid reduced trading activity, while gold prices surged to record levels. Industrial growth benefits from improved electricity supply, aiding sectors like cement and iron.
Aviation sees shifts, with Indian airlines resuming Nepal flights and international carriers reducing operations from Gautam Buddha Airport.
Additionally, Nepal seeks increased power imports from India, and financial institutions stress enhanced digital security. Infrastructure improvements, such as the extension of Tribhuvan Airport’s operational hours, support economic expansion.
These developments highlight Nepal’s ongoing economic transformation amid challenges in governance, trade, and investment.
Chudamani Chapagain appointed as NEPSE CEO
Chudamani Chapagain has officially taken over as the Chief Executive Officer (CEO) of the Nepal Stock Exchange (NEPSE) after receiving his appointment letter. The decision was made during Monday’s Cabinet meeting, and Revenue Secretary Dinesh Kumar Ghimire handed over the letter at the Ministry of Finance on Tuesday.
Chapagain, originally from Jhapa, has extensive experience with Sanima Bank and Sanima Reliance Life Insurance. Initially, Narad Kumar Luitel was appointed for the role, but his selection was not approved by the Chief Secretary. Following public criticism of his nomination, the Cabinet decided to appoint Chapagain instead.
NEPSE index falls as trading volume declines
The NEPSE index, on Tuesday, dropped by 15.57 points, closing at 2,677.55. Share turnover also declined, with total transactions falling from NPR 7.56 billion on Sunday to NPR 5.79 billion.
Guardian Micro Life Insurance recorded the highest share price increase at 10%, while 201 companies saw their stock prices decline.
Gold prices hit record high
Gold prices surged to a record high on Tuesday, reaching NPR 179,700 per tola—an increase of NPR 1,800 from the previous day. Silver prices remained steady at NPR 2,035 per tola, according to the Nepal Gold and Silver Dealers’ Association.
Industrial sector benefits from consistent power supply
The Nepal Electricity Authority’s efforts to ensure an uninterrupted power supply have been well received by industrialists. The Federation of Nepal Export Association expressed gratitude, highlighting that reduced load shedding is improving industrial productivity.
Two Indian airlines resume flights to Nepal
SpiceJet and Air India Express are set to operate regular flights to Nepal. SpiceJet is returning after six years, while Air India Express is making its debut in Nepal. Both airlines have received necessary approvals for flight schedules at Tribhuvan International Airport, confirmed General Manager Jagannath Niroula.
SpiceJet will operate daily flights, whereas Air India Express will have two flights per day. Their flights will arrive in Kathmandu in the afternoon. Currently, Air India runs seven daily flights from India, and Indigo Airlines operates three. With these additions, four airlines will provide regular services between the two countries.
Tribhuvan International Airport extends operational hours
Tribhuvan International Airport has resumed 18-hour daily operations from Tuesday after five months of infrastructure upgrades. The airport had been closing for 10 hours daily for construction, but it now operates from 6 AM to midnight, according to General Manager Jagannath Niroula.
Improvements include a completed taxiway connecting to the runway, while work on a parallel taxiway and apron expansion is still ongoing under the Airport Capacity Enhancement Project.
NRB recommends enhanced financial security
The Nepal Rastra Bank has emphasized the need for a three-tier security system to combat increasing risks in digital financial transactions. While modern technology has made banking services more accessible, the central bank warns that the risk of cyber misuse has grown significantly.
Financial institutions and individuals are advised to adopt robust authentication methods and safeguard personal information.
Dordi Khola Hydropower issues rights shares
Dordi Khola Hydropower has started offering 100% rights shares from Tuesday. Shareholders who held stock as of 13th Falgun are eligible to apply until 8th Baishakh. The company is issuing NPR 1.054 billion worth of shares at NPR 100 per share. Sanima Capital Limited is managing the share issuance.
Prabhu Sah proposes to declare Birgunj as economic capital
Prabhu Sah, Chair of the Aam Janata Party, has advocated for Birgunj to be recognized as Nepal’s economic capital. Speaking at a press conference, the House of Representatives (HoR) member emphasized the need for government and private sector collaboration to drive economic growth.
He warned that Nepal’s rising internal and external debts require urgent policy measures to support domestic industries and manufacturing units.
Indian firm wins bid to manage Birgunj Dry Port
Pristine Mega Logistic Park Pvt. Ltd., an Indian company, has secured the contract to manage the Birgunj Dry Port for the next five years.
The Nepal Intermodal Transport Development Committee awarded the contract for NPR 4.71 billion after evaluating bids from both Pristine and Container Corporation of India Ltd. The same company had previously managed the dry port at a cost of NPR 3.33 billion.
Governor appointment delayed as PM travels to Thailand
The appointment of Nepal Rastra Bank’s next governor has been postponed due to Prime Minister KP Sharma Oli’s trip to Thailand for the BIMSTEC summit. Although the selection process was set to conclude on Monday, Oli decided to finalize the appointment upon his return. Finance Minister Bishnu Paudel is leading the committee responsible for nominating three candidates.
Climbers arrive at Annapurna Base Camp for expeditions
The Annapurna climbing season has officially begun, with mountaineers arriving at the base camp in Myagdi. According to local official Shyam Purja, the camp is bustling with climbers, guides, and tourists. The Department of Tourism reports that 42 climbers from five groups have obtained permits to scale the 8,091-meter peak this spring.
Cement and iron prices drop due to improved power supply
Cement and iron rod prices have fallen as power supply to industries improves. Cement is now up to NPR 15 cheaper per bag, while iron rod prices dropped by NPR 2 per kg. The reduction follows India’s decision to resume electricity exports to Nepal for four additional hours per night.
Motor and property insurance sectors expand
Nepal’s non-life insurance industry grew by 8.9%, with total premiums reaching NPR 28.60 billion. Motor insurance, the largest segment, saw a 5.16% increase, generating NPR 8.60 billion in premiums despite a 9.01% drop in policy sales.
Property insurance grew by 11.33%, collecting NPR 7.16 billion. Growth is driven by government mandates and rising vehicle sales.
Nepal requests additional power supply from India
To address electricity shortages during the dry season, Nepal has requested 230 MW of electricity from India. The Ministry of Energy has officially communicated with Indian authorities, leveraging an existing bilateral electricity trade agreement. Nepal is also seeking approval to purchase electricity from India’s energy exchange for 24-hour access.
Citizen Investment Trust signs pension fund agreement with PU
Citizen Investment Trust (CIT) has partnered with Purwanchal University to establish a contribution-based pension and gratuity fund. PU Vice-Chancellor Prof. Bijukumar Thapaliya and CIT representative Parbatkumar Karki signed the agreement, aiming to ensure fair returns for participants.
Airlines reduce operations from Gautam Buddha International Airport
Several airlines, including Jazeera Airways, Fly Dubai, and Thai AirAsia, have suspended flights from Gautam Buddha International Airport for the summer season.
Previously, these carriers operated international flights under the winter schedule, but low passenger demand led to service reductions. Nepal Airlines remains the only airline maintaining regular flights from the airport.
Bhatbhateni Superstore to recognize employees for service during vandalism incident
Bhatbhateni Superstore will honor more than 50 employees at its Koteshwor branch for their efforts in protecting and restoring the store after a violent incident.
On March 28, around 150 individuals looted and vandalized the store. Employees and security personnel worked overnight to repair damages and restore operations.
The total loss is estimated at NPR 80.33 million, with stolen goods including electronics, liquor, and clothing.
Nepal Chamber of Commerce joins PM Oli at BIMSTEC Summit
A delegation from the Nepal Chamber of Commerce, led by President Kamlesh Kumar Agrawal, has accompanied Prime Minister KP Sharma Oli to the BIMSTEC Summit in Thailand. The team will discuss trade, tourism, and investment agreements with Thai business leaders and government officials.
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