KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments in Nepal’s financial and regulatory sectors highlight both opportunities and challenges.
The House of Representatives approved the Economic Procedures and Financial Responsibility Ordinance, signaling a commitment to financial reforms, while the finance minister reassured efforts to remove Nepal from the FATF grey list.
In the stock market, the NEPSE index saw a decline, with a significant drop in Green Development Bank’s stock price, indicating market volatility.
Meanwhile, Nepal Rastra Bank introduced new policies aimed at enhancing digital payment security and allowing multiple cards per customer, showing a push towards modernizing the banking sector.
Additionally, the government’s fiscal strategy for the upcoming fiscal year emphasizes fiscal discipline, realistic budgeting, and inter-government coordination, but challenges persist in foreign employment, national park management, and trade reforms.
This mixture of progressive steps and ongoing regulatory adjustments highlights the government’s focus on economic stability, investor protection, and long-term sustainability in various sectors.
HoR passes Economic Procedures and Financial Responsibility Ordinance
The House of Representatives (HoR) approved the Economic Procedures and Financial Responsibility (First Amendment) Ordinance, 2081, with a majority vote. Finance Minister Bishnu Prasad Paudel refuted accusations regarding the downsizing of major commissions.
A proposal by RSP lawmaker Dr. Swornim Wagle to disapprove the ordinance was rejected. Minister Paudel reassured that Nepal would be removed from the FATF grey list within two years and reaffirmed the government’s commitment to financial reforms and international compliance.
NEPSE declines by 25.16 points, turnover reaches Rs. 10.97 billion
The Nepal Stock Exchange (NEPSE) on Wednesday dropped by 25.16 points (0.88%) to close at 2,821.13, following a loss of 30.36 points in the previous session.
The index fluctuated between 2,850.16 and 2,808.75. A total of 23.34 million shares were traded, amounting to Rs. 10.97 billion.
Himalayan Reinsurance (HRL) led turnover with Rs. 96.7 Crores. Samaj Laghubitta (SAMAJ) and Guardian Micro Life Insurance (GMLI) saw a 10% increase, while Green Development Bank (GRDBL) experienced the biggest loss, falling 6.84%.
Gold prices rise by Rs 900 per tola
Gold prices in Nepal rose by Rs 900 per tola, reaching Rs 170,400 on Wednesday, up from Rs 169,500 on Tuesday. Silver prices also increased by Rs 10 per tola, traded set at Rs 1,950.
BFIs allowed to issue multiple cards per customer
Banks and financial institutions in Nepal are now authorized to issue more than one card to a single customer. Nepal Rastra Bank amended the regulation, allowing multiple cards under the domestic card scheme.
The central bank’s Payment Systems Department issued a circular that revises 71 provisions to enhance risk management, identification, and prevention.
Nepal Rastra Bank introduces new policy for digital payment security
Nepal Rastra Bank has unveiled a new policy aimed at improving the security of digital payment systems. The revised Integrated Directive 2080 categorizes various risks and implements management measures.
Key changes focus on network security, anti-money laundering, and counter-terrorism financing. The updated policy also covers ATM card usage, VPN security, and USSD transactions to ensure safer digital payments.
Finance Ministry begins preparing budget for fiscal year 2082/83
The Ministry of Finance has begun the budget preparation process for the fiscal year 2082/83 BS (2025-26). In a meeting with the Ministry of Physical Infrastructure and Transport, Finance Minister Bishnu Prasad Paudel emphasized the importance of fiscal discipline and realistic budgeting.
He called for coordination among government levels and suggested cutting down small projects. Paudel encouraged ministries to strategically plan within budget ceilings, with the Natural Resources Estimation Committee recommending a ceiling of Rs 196.5 billion.
Finance Minister urges quick approval of key bills
Finance Minister Bishnu Paudel urged the swift approval of the BFI (First Amendment) Bill, 2080, and the Securities (First Amendment) Bill, 2081. Addressing the Finance Committee, he called for expedited review to ensure implementation by the end of Chaitra.
The committee also discussed customs law amendments aimed at improving trade efficiency, enhancing technology, and aligning with international agreements.
Company Registrar’s Office introduces fully digital registration system
Nepal’s Office of the Company Registrar has implemented a fully digital company registration system, eliminating the need for in-person visits and reducing procedural delays.
The new Company Administration Management Information System (CAMIS) allows online submissions, approvals, and digital processing of documents. While company dissolution still requires in-person identity verification, other services are now available online.
Govt committed to removing Nepal from FATF Grey List: Finance Minister
Finance Minister Bishnu Paudel reaffirmed the government’s dedication to removing Nepal from the FATF grey list. In his speech to the House of Representatives, Paudel detailed the government’s actions and expressed confidence that this goal could be achieved within two years or even sooner.
He also announced plans to release a white paper explaining Nepal’s inclusion in the grey list and addressing past actions and shortcomings.
Nepal Securities Board to approve IPOs for six hydropower companies
The Nepal Securities Board is set to approve IPO issuances for six out of 42 hydropower companies in the pipeline.
A board official clarified that delays were due to necessary document verification and on-site inspections to protect investors, rather than intentional halts.
The board has completed evaluations and will soon grant approval, ensuring investor protection and transparency.
Banks to follow NRB regulations after SC ruling
The Supreme Court ruled that labor laws do not apply to banks and financial institutions operating under special acts. As a result, banks will now follow Nepal Rastra Bank’s (NRB) model regulations for employee service conditions.
The Nepal Bankers’ Association discussed the implications, highlighting collective bargaining rights and bonuses. The ruling stemmed from a case involving Swabalamban Laghubitta and dismissed employees, reversing a prior labor court decision.
Nepal Micro Insurance IPO allotment scheduled for Friday
Nepal Micro Insurance Limited will allot its IPO shares on Friday, 23rd Falgun, 2081, at 8:30 AM at NIMB Ace Capital Limited, Lazimpat.
Of the 2,250,000 units, 10% were allocated to Nepalese working abroad, 3% to employees, and 5% to mutual funds. The remaining 1,845,000 units were offered to the public.
With 1,902,984 applicants, only 184,500 will receive shares. NMIC, a micro non-life insurer, began operations in 2023 and holds a ‘CARE-NP BB—(Is)’ rating.
Over 1.86 million investors to miss out on SLBBL’s FPO
Swarojgar Laghubitta Bittiya Sanstha Ltd. (SLBBL) saw an overwhelming response to its Further Public Offering (FPO), which was oversubscribed by 119.84 times. By the final application day, 1,882,422 investors had applied for shares worth Rs 2.34 billion.
However, only 19,577 applicants will receive shares. SLBBL had issued 195,773 shares at Rs 100 per share starting from Falgun 18.
Nepali tea exports surge amid increased demand
Nepali tea exports have grown by 55.3% in the first seven months of the current fiscal year, reaching 12.39 million kilograms valued at Rs 3.166 billion, driven by production declines in India.
Despite a 5-million-kilogram production drop in Nepal due to drought, tea prices have doubled, benefiting farmers. Koshi Province leads exports, accounting for 99% of Nepal’s tea shipments.
Experts stress the need for improved quality, branding, and climate resilience for long-term sustainability.
Ministers discuss foreign employment and migration challenges
A joint meeting of Foreign, Home, and Labor Ministers was held to address challenges in Nepal’s foreign employment and migration sectors.
Foreign Minister Dr. Arzu Rana emphasized regulating undocumented migration, particularly of domestic workers to the Middle East. Ministers focused on updating outdated laws, improving labor approvals, and strengthening Nepal’s labor diplomacy.
National Parks policy issues discussed in NA
The Public Policy and Delegated Legislation Committee of the National Assembly held discussions with stakeholders regarding policy issues related to national parks.
Experts recommended simplifying compensation and relief processes through local governments and integrating economic activities into forest conservation laws.
They stressed the need for clear regulations to ensure sustainable forest development and reduce the financial burden on the state.
Minister Khadka denies political interference in NEA leadership
Energy Minister Deepak Khadka dismissed claims of political interference in the potential removal of Nepal Electricity Authority (NEA) Executive Director Kulman Ghising.
Speaking in Tanahun, he stated that the government has the authority to appoint or remove officials as necessary. Regarding NEA’s zero performance evaluation, he explained that it resulted from the failure to submit reports on time.
Cathay Pacific to offer daily Kathmandu-Hong Kong flights
Cathay Pacific Airlines will increase its Kathmandu-Hong Kong flights to a daily schedule from March 31, up from the current five weekly flights.
Nepal Country Head Junu Maleku stated that this expansion aims to better serve passengers traveling via Hong Kong. Regional General Manager Rakesh Raicar also revealed plans to add more destinations in 2025.
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