KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s recent economic and political landscape reflects a mixture of transitions, challenges, and cautious optimism. The appointment of Nilam Dhungana Timilsina as Acting NRB Governor coincides with efforts to manage excess liquidity through NPR 35 billion in withdrawals, amid a bearish stock market and declining trading volumes.
While gold prices dipped, silver saw gains, and digital loans gained momentum with nearly NPR 3 billion disbursed, indicating financial sector digitization.
Political tensions also surfaced, as RSP Chair Lamichhane was jailed in a fraud case, while protesters rallied against financial exploitation.
Infrastructure setbacks—like delays in the Narayangadh-Butwal road expansion and flight suspensions at GBIA—underscore governance inefficiencies.
Meanwhile, the resumption of Hetauda Cement’s production and SpiceJet’s Nepal return point to slow but steady recoveries across sectors.
Nilam Dhungana Timilsina named Acting NRB Governor
With the term of NRB Governor Mahaprasad Adhikari ending, Senior Deputy Governor Nilam Dhungana Timilsina has been appointed acting governor. Finance Minister Bishnu Prasad Paudel made the appointment under provisions of the NRB Act 2058.
NEPSE index dips below 2700 amid market-wide downturn
On Monday, the Nepal Stock Exchange (NEPSE) index slipped beneath the 2700 level. The trading session began at 2,703 points and concluded with a drop of 33.33 points, ending at 2,670.
Only 23 companies saw gains, while shares of 221 firms declined, reflecting a broadly bearish trend. Alongside the index decline, the trading volume also decreased, dropping from NPR 7.84 billion the previous day to NPR 5.65 billion.
All sector indices posted losses. The trade sector was hit hardest, falling 3.1%. Other sectors also declined: Banking (-0.97%), Development Banks (-1.11%), Hotels & Tourism (-1.35%), Finance (-2.26%), Hydropower (-1.37%), Investment (-1.69%), Life Insurance (-0.83%), Manufacturing (-1.42%), Microfinance (-1.03%), Non-Life Insurance (-1.22%), and Others (-0.44%).
Nepal Rastra Bank to mop up NPR 35 billion in liquidity
The Nepal Rastra Bank (NRB) has announced another liquidity withdrawal of NPR 35 billion from the banking system, citing surplus funds. Scheduled for April 7 (Chaitra 25), the central bank will use a 23-day deposit collection instrument.
Interested financial institutions may apply to invest between NPR 10 million and 50 million each. Any remaining funds after allocation will be left untouched.
Gold prices slide, silver gains in local market
On Monday, gold prices in Nepal dropped by NPR 700 per tola, with hallmark gold priced at NPR 173,800, down from NPR 174,500 the previous day.
Meanwhile, silver saw a modest increase of NPR 30, rising from NPR 1,800 to NPR 1,830 per tola, according to the Federation of Nepal Gold and Silver Dealers Association.
RSP Chair Lamichhane jailed in cooperative fraud case
Rabi Lamichhane, Chair of the Rastriya Swatantra Party, has been placed in custody in connection with a cooperative scam. Following a court appearance in Rupandehi District, he was ordered into judicial custody and underwent a health check before being taken to jail.
Lamichhane was arrested Friday night in Kathmandu and transported to Bhairahawa on Saturday. Due to the weekend public holiday, he was held at the district police office until court proceedings resumed.
Transport Minister pledges crackdown on non-compliant vehicles
Devendra Dahal, Minister for Physical Infrastructure and Transport, has vowed to take action against vehicles that don’t meet legal standards. Coordinating with the Ministry of Home Affairs, Dahal emphasized shared responsibility for enforcement.
Speaking to transport stakeholders, Dahal also noted traffic arrangements near construction zones and highlighted progress in repairs to the BP Highway and the Kanti Lokpath alternative route.
Narayangadh-Butwal road expansion delayed again
The Narayangadh-Butwal road widening project, handled by China State Construction and funded by the ADB, is still incomplete after seven years. Despite three deadline extensions, a fourth is now being requested, aiming for mid-2026 completion.
To date, only 50 km of the eastern stretch has been blacktopped. Authorities plan to close 13 km of road sections to speed up the work. The project, worth NPR 16.99 billion, continues to disrupt daily travel due to delays blamed on both the contractor and government.
Insurance companies urged to prioritize value-added services
At the launch of Suryajyoti Care and e-Loan in Kathmandu, Insurance Board Chair Sharad Ojha urged insurers to promote term life products and other value-added services. He stressed credibility, digital responsibility, and data protection, adding that these initiatives could broaden insurance access and positively influence the industry.
KMC staff receive back pay following return of CAO
Staff of Kathmandu Metropolitan City have finally received delayed salaries following the return of Chief Administrative Officer Saroj Ghimire. The payout, totaling NPR 1.13 billion, covered 2,900 staff, including Mayor Balen Shah, some of whom had gone unpaid for up to six months.
The salary release came after a clash between Ghimire and the mayor over the Kathmandu Tower project. Ghimire was escorted back to his office amid pressure from city officials.
Protesters rally in Kathmandu against financial exploitation
Victims of cooperatives, microfinance, banks, and loan sharks held a protest march in Kathmandu on Monday. Starting at Shantibatika, they aimed to reach the President’s Office but were stopped by police.
Protesters, many of whom lost savings or face predatory lending, chanted slogans demanding justice and government accountability. They accused politicians of shielding financial fraudsters.
SpiceJet to resume Nepal flights after five-year hiatus
Indian airline SpiceJet will resume operations in Nepal after five years, with daily New Delhi-Kathmandu flights starting May 10, 2025. Himalayan Global Travel Services Pvt. Ltd. will act as the airline’s general sales agent in Nepal.
Flights will use a Boeing 737 with 189 economy seats, arriving in Kathmandu at 9:55 AM and departing for Delhi at 10:55 AM.
Banks disburse nearly NPR 3 billion in digital loans
Thirteen banks and financial institutions in Nepal disbursed nearly NPR 3 billion in digital loans during fiscal year 2080/81. A report by Nepal Rastra Bank attributes this to advancements in digital lending infrastructure and the implementation of the “Electronic Loan Disbursement Guidelines, 2078.”
These guidelines allow end-to-end digital processing for loans, increasing accessibility and efficiency.
Rupandehi businesses demand action over GBIA flight suspension
Business and tourism groups in Rupandehi have demanded action against Civil Aviation Authority DG Pradeep Adhikari following the suspension of international flights from Gautam Buddha International Airport (GBIA) in Bhairahawa.
They claim Adhikari’s negative remarks discouraged airlines from operating, causing the airport to fall idle after April 1, despite limited activity continuing until March 29.
Butwal Power approves 40% right share issue
Butwal Power Company will issue 40% right shares to fund various projects, following a board decision. It has suspended its previous plan to issue a Follow-on Public Offering (FPO).
With a current paid-up capital of NPR 3.40 billion, the company will raise NPR 1.36 billion through the rights issuance.
Hetauda Cement resumes production after power outage
Hetauda Cement Industry restarted production Monday after a nearly five-month halt due to power shortages. With electricity supply restored, production has resumed.
The factory currently has 1,900 metric tonnes of coal in stock and plans to procure an additional 4,000 metric tonnes. The industry was established in Lamsure in 2033 BS and began operating in 2043 BS with an initial investment of Rs 1.5 billion.
International Transport Conference Slated for April 11-13
The 3rd International Transport Conference will be held from April 11 to 13 under the theme “Towards Safe, Sustainable, Efficient and Resilient Mobility.”
Hosted by the Society of Transport Engineers Nepal, the event aims to shape future policies and improve public transport infrastructure and sustainability, said Chair Dr. Hareram Shrestha.
4th National Chartered Accountants Conference begins today
The 4th National Chartered Accountants Conference will commence Tuesday, organized by ICAN under the theme “Transforming the Economy through Modernization of Taxation and Public Financial Management.”
Participants include chartered accountants, policymakers, academics, and industry leaders, who will discuss tax reform and fiscal modernization.
Delayed Kathmandu City Salaries Finally Paid Out
After several months of delays, Kathmandu Metropolitan employees have received their due wages. Some staff had not been paid for four to five months.
Chief Administrative Officer Saroj Guragain, forcibly reinstated to office by Deputy Mayor Sunita Dangol and others, facilitated the salary release. Reports indicate a broken window during the incident.
Bhairahawa Customs records NPR 14.47 billion in imports by Magh end
By the end of Magh, Bhairahawa Customs Office recorded NPR 14.47 billion in imports, achieving 55.26% of its revenue target for the period.
Although only NPR 6.04 billion in revenue was collected, this marks a 15.44% rise compared to the previous year. Current revenue collection is averaging 85.70% monthly.
Comment