KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The latest Economic Digest provides an insightful snapshot of key financial and economic events in Nepal. The NEPSE index rebounded to 2700 points despite a decline in trading volume, while Nepal Rastra Bank announced plans to withdraw Rs. 30 billion from circulation.
Gold prices fell by Rs. 600 per tola, and Nepali banks’ base rates dropped to a three-year low, making borrowing cheaper. Additionally, the Department of Revenue Investigation identified the owner of Rs. 250 million in seized foreign currency, and Binod Chaudhary ranked 1,763rd on Forbes’ Billionaire List with a net worth of $2 billion.
Nepal and Thailand strengthened bilateral ties through MoUs in tourism, culture, and investment, while SEBON introduced new brokerage merger guidelines.
Additionally, Nepal Airlines reported a revenue drop, local protests stalled tunnel construction, and the federal government allocated NPR 305 billion for provinces and local governments.
NEPSE rebounds to 2700 points despite lower trading volume
The Nepal Stock Exchange (NEPSE) index rose by 23.86 points on Wednesday, reaching 2700 points, recovering from a previous 16-point drop. However, total trading volume declined to NPR 5.44 billion from NPR 5.79 billion the previous day.
Among listed companies, 166 saw price increases, while 78 experienced declines. The trade sector led the gains with a 9.44% surge, largely driven by Bishal Bazaar Company’s nearly 10% rise.
Most sectors recorded gains, except for the manufacturing sector, which fell by 1.47%, and non-life insurance, which declined by 0.26%.
Nepal Rastra Bank to withdraw Rs. 30 billion from market
Nepal Rastra Bank will remove an additional Rs. 30 billion from circulation on Wednesday via a deposit collection auction at 3 PM.
Banks and financial institutions in categories A, B, and C can bid amounts ranging from Rs. 50 million to Rs. 500 million. The collected deposits will be settled, including principal and interest payments, on Baisakh 10.
Gold prices drop by Rs. 600 per tola
Gold prices dropped by Rs. 600 per tola in the domestic market, with hallmark gold now priced at Rs. 179,700 per tola. Silver prices also fell by Rs. 15 per tola.
Bank base rates drop to three-year low
Nepali banks’ base rates fell to a three-year low, averaging 6.48% in Chaitra, down from 6.63% in Falgun. Some banks now offer rates below 7%, with Standard Chartered providing the lowest at 5.03%.
This decrease results from ongoing reductions in deposit interest rates due to excess liquidity, making borrowing cheaper as many banks provide loans at minimal premiums or even at base rates.
DRI identifies owner of Rs. 250 million foreign currency seized in Kathmandu
The Department of Revenue Investigation (DRI) identified Narayan Paudel as the owner of Rs. 250 million in foreign currency found in a truck in Tokha, Kathmandu.
The police had previously arrested Kusan Lama, who had hidden the money in a false compartment. Investigators used call records, CCTV footage, and digital forensics to trace Paudel, leading to a court-issued arrest warrant and subsequent raids on his properties.
Binod Chaudhary ranked 1,763rd on Forbes Billionaire List
Binod Chaudhary, Nepal’s only dollar billionaire, ranked 1,763rd on Forbes’ latest list, which includes 3,028 billionaires. His net worth increased by $200 million in 2024, reaching $2 billion.
His investments include stakes in Nabil Bank and CG Foods, with Wai Wai noodle factories in India, Serbia, and Bangladesh, and a new plant under construction in Egypt. Chaudhary Group also manages 143 hotels worldwide and is expanding into the sauces market.
SC declines interim order against insurance authority chief
The Supreme Court rejected a request for an interim order against Nepal Insurance Authority Chairman Sharad Ojha.
The petition, filed by advocate Indira Dhungmala, accused Ojha of using a fake experience certificate. While dismissing the order, the court issued a show-cause notice to the government and summoned both parties for discussion.
Nepal and Thailand sign tourism and culture agreements
Nepal and Thailand signed two Memorandums of Understanding (MoUs) on tourism and culture.
Nepal’s Foreign Minister Dr. Arzu Rana Deuba and Thai ministers signed the agreements, with additional MoUs in health, education, trade, and commerce also being finalized.
CNI and FTI partner to strengthen Nepal-Thailand investment
The Confederation of Nepalese Industries (CNI) and the Federation of Thai Industries (FTI) signed an MoU to boost investment, research, training, and policy exchange between the two nations.
CNI President Rajesh Kumar Agrawal emphasized that Nepal’s legal reforms make it an attractive destination for Thai investors.
IFC and NRB report highlights Nepal’s digital finance growth
A joint report by the International Finance Corporation (IFC) and Nepal Rastra Bank (NRB) highlights Nepal’s rapid digital finance expansion, with digital payments surging 125% over two years to Rs. 6.2 trillion.
The report, supported by Japan, the UK, and Korea, emphasizes further investments in infrastructure, financial literacy, and cybersecurity for sustainable growth.
Nepal’s share trading system upgraded with new TMS
A new Trading Management System (TMS) has been introduced in Nepal’s stock market, developed by Iron One Technology of Sri Lanka.
Several brokerage firms have already adopted the system, which enables seamless mobile, desktop, and web trading. The upgrade ensures accurate collateral tracking without additional fees.
Nepal Airlines reports Rs. 1.54 billion revenue drop
Nepal Airlines Corporation’s revenue declined by Rs. 1.54 billion (16%) in the first eight months of FY 2081/82 due to aircraft maintenance delays and reduced operations. Passenger numbers fell by over 56,000, further straining the airline’s finances.
New NEPSE CEO prioritizes governance and transparency
Newly appointed NEPSE CEO Chudamani Chapagain emphasized governance, transparency, and technology use in stock trading. He plans to introduce financial literacy programs to enhance investor confidence and participation in the market.
Thai PM pledges investment in Nepal’s aviation and tourism sectors
Thai PM Paetongtarn Shinawatra expressed Thailand’s interest in increasing investment in Nepal’s tourism and aviation sectors. She also proposed boosting Thai Airlines flights to Kathmandu and initiating direct flights to Lumbini.
India funds 10 community development projects in Nepal
The Indian government signed MoUs to fund 10 High Impact Community Development Projects (HICDPs) in Nepal across education, health, and culture, with a total cost of Rs. 625 million. Since 2003, India has completed 495 such projects across Nepal.
SEBON introduces guidelines for brokerage mergers
The Securities Board of Nepal (SEBON) has launched new merger and acquisition guidelines for brokerage firms. Firms seeking to merge must obtain board and general assembly approval before submitting an application to SEBON, which will review and decide within 15 days.
Bhatbhateni Superstore owner provides financial aid to families of deceased youths
Min Bahadur Gurung, owner of Bhatbhateni Supermarket, pledged financial support of NPR 5 lakh and NPR 3 lakh to the families of two youths who died in an incident on Chaitra 15. Security guard Dul Prasad Parajuli was also honored with NPR 5 lakh and a promotion for his bravery.
Russian Ambassador discusses energy cooperation with Minister Khadka
Russian Ambassador Aleksei Novikov met with Energy Minister Deepak Khadka to discuss Russia’s potential investment in Nepal’s hydropower and energy sectors. Minister Khadka invited Russian firms to invest in transmission lines, smart grids, and energy storage projects.
Local protests halt Nagdhunga-Sisnekhola Tunnel construction for 18 days
Work on the Nagdhunga-Sisnekhola Tunnel has been stalled for 18 days due to protests by local residents demanding compensation and better water supply. The government has yet to respond to their demands, prolonging delays.
Federal govt to allocate NPR 305 billion to provinces and local govts
The Federal Government plans to distribute NPR 305 billion to provincial and local levels through revenue sharing and equalization grants in the upcoming fiscal year. Koshi, Madhesh, Bagmati, Gandaki, Lumbini, Karnali, and Sudurpaschim provinces will receive varying amounts based on allocations.
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