KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The Nepal Stock Exchange (NEPSE) witnessed a decline of 14.88 points (0.55%) to close at 2,682.15, with a total turnover of Rs. 5.14 billion. Key stocks such as Himalayan Reinsurance Limited led the turnover, and the session saw fluctuations in the index between 2,706.58 and 2,676.30.
Meanwhile, the gold price in Nepal reached a record high of Rs. 176,000 per tola. NEPSE introduced a new 15-minute weighted average closing price rule to improve market transparency and stability.
Home loan growth is rising as interest rates decrease, while the country’s economy faces stagnation despite excess liquidity. The Insurance Authority has mandated the creation of investment management units in insurance companies.
Other significant developments include a government move to enhance health insurance, the resumption of the Upper Rawakhola Hydropower Project after a compensation agreement, and progress on key infrastructure projects like the Benighat-Arughat-Larke road and Butwal-Pokhara road upgrades.
Additionally, Nepal is preparing for its transition to a Developing Nation status by 2026, while the ongoing climate change poses serious risks to the country’s farming sector.
NEPSE Drops 14.88 Points, Closes at 2,682.15
The Nepal Stock Exchange (NEPSE) on Wednesday declined by 14.88 points (0.55%) to close at 2,682.15. The total turnover was Rs. 5.14 billion, with 9.58 million shares traded across 311 companies.
Himalayan Reinsurance Limited led the turnover at Rs. 29.67 Crores. Mithila LaghuBitta gained 9.39%, while Samudayik Laghubitta dropped 9.20%. The Trading Index rose 0.60%, while the Finance Index fell 1.53%.
The session saw 54,622 transactions, with the index fluctuating between 2,706.58 and 2,676.30.
Gold Price Hits Record High in Nepal
The price of gold in Nepal surged to a record Rs 176,000 per tola, rising by Rs 800 from the previous day on Wednesday. The international price of gold stands at $3,035 per ounce, while silver dropped to Rs 2,045 per tola.
NEPSE Implements 15-Minute Weighted Average Closing Price Rule
Starting today (March 20), NEPSE will adopt a 15-minute weighted average closing price rule to prevent last-minute price manipulation. The closing price will now be based on trades executed between 2:45 PM and 3:00 PM, with higher-volume transactions carrying more weight.
The new system replaces the previous one based on the last traded price, aiming to enhance fairness, transparency, and market stability.
Home Loan Growth as Interest Rates Drop
With falling interest rates, home loans in Nepal are rising. Nepal Rastra Bank’s recent data shows a 4.36% increase in personal home loans over the past year, reaching NPR 318.84 billion.
Siddhartha Bank saw a 29.15% rise, while Nepal Bank experienced the highest decline of 21.13%. Eight banks reduced their home loan offerings, while twelve increased lending.
Nepal’s Economy Faces Stagnation Despite Surplus Liquidity
Despite declining interest rates and excess liquidity in the financial system, Nepal’s economy remains stagnant. Over NPR 812.8 billion remains unutilized due to a lack of investment opportunities.
Banks are focusing on debt recovery rather than lending, while experts suggest channeling funds into productive sectors to revive economic growth and ensure sustainable development.
Insurance Authority Orders Investment Units in Companies
The Nepal Insurance Authority has directed all life, non-life, and reinsurance companies to establish an Investment Management Unit within seven days.
The unit must be led by a senior manager with investment experience. Microinsurance companies must also appoint a qualified individual for investment management.
Companies with existing investment policies are required to inform the authority. This measure aims to improve investment management and oversight in the sector.
Illegal Fertilizer Imports Linked to Nepal’s FATF Grey Listing
A government investigation has revealed that illegal chemical fertilizer imports have contributed to Nepal’s inclusion on the FATF grey list.
Fertilizers imported from Iran under U.S. sanctions were found to have used forged documents. Authorities are now monitoring new imports to prevent further violations and reduce the risk of continued grey list status.
Pokhara Hotels Offer Discounts for Nepali New Year Tourists
Hotels in Pokhara are offering a 20% discount on room rates for the Nepali New Year 2082 celebrations, from April 12-14.
The 20th Fewa New Year Festival will feature cultural performances, local cuisine, and tourism promotions, with an estimated budget of Rs 5 million aimed at boosting tourism and economic activity.
National Assembly Passes Banking Offense and Punishment Bill
The National Assembly on Wednesday unanimously passed the “Banking Offense and Punishment (Second Amendment) Bill, 2080.”
Finance Minister Bishnu Prasad Paudel presented the bill, which was previously received from the House of Representatives. The assembly also addressed governance and cooperative law amendments, with the next session scheduled for March 21.
Cement Producers Call for 24-Hour Power Supply
The Nepal Cement Producers Association has urged the government to provide continuous electricity supply to cement industries. Load-shedding has forced producers to rely on expensive alternative energy sources, making cement prices unsustainable.
Despite Nepal achieving cement self-sufficiency, industries are facing 12-14 hours of power cuts, and the association warns that longer outages will further disrupt production.
Top 08 Brokers Drive NEPSE Trading Activity
Eight of the top 10 brokers saw higher purchases than sales today. NASA Securities led with NPR 33.80 crore in purchases and NPR 30.11 crore in sales. Other brokers such as Online Securities and Sunny Securities followed closely, indicating strong investor confidence and rising trading volumes.
Minister Acknowledges Continued Evening Load Shedding
Energy Minister Deepak Khadka confirmed ongoing evening load shedding while speaking in the National Assembly. He attributed power availability to imports from India and private sector generation, admitting that industries continue to face power cuts due to the prioritization of household needs.
Government Accelerates New Budget Preparation
As the constitutional deadline for the budget approaches, the Ministry of Finance is finalizing discussions for the new budget.
Minister Bishnu Paudel has instructed ministries to propose realistic budgets, focusing on ongoing projects and efficient resource allocation, with coordination from donor agencies to secure funding for MCC-related initiatives.
Nepal Prepares for Transition to Developing Nation Status
The Ministry of Finance is preparing for Nepal’s transition from a Least Developed Country (LDC) to a Developing Nation by November 2026.
Finance Minister Bishnu Prasad Paudel has directed officials to ensure a smooth transition with a focus on sustainable economic growth, job creation, stable policies, and enhanced financial accessibility.
Climate Change Threatens Nepal’s Farmers
A government study reveals that 500,000 goat-farming households in Nepal are at extreme risk from climate change, with another 2 million at high to moderate risk.
Climate changes, such as rising temperatures, are reducing milk production and affecting agricultural yields, with experts warning of growing food security concerns.
Nepal, Cambodia Discuss Direct Air Connectivity
Nepal is in talks with Cambodia to establish direct air services. Minister for Culture, Tourism, and Civil Aviation Badri Prasad Pandey met with his Cambodian counterpart to discuss potential flights and tourism collaboration, including the Greater Buddhist Circuit.
Shortlisted Candidates Present Plans for NEPSE CEO Role
Five candidates for the position of CEO at the Nepal Stock Exchange (NEPSE) have presented their business plans. The shortlisted candidates, including Chudamani Chapagai and Narad Kumar Luitel, were interviewed on March 20 by the Ministry of Finance’s recommendation committee.
Benighat-Arughat-Larke Road Makes Progress
Construction on the 42-km Benighat-Arughat-Larke road is progressing, with vehicles now operating on a 36-km stretch.
The Nepal Army has constructed a bailey bridge at Machhikhola, with Rs 70 million allocated for additional construction this fiscal year.
Butwal-Pokhara Road to be Upgraded
The 157.95 km Butwal-Pokhara road will be upgraded with viaducts, tunnels, and a two-lane blacktop. The Rs. 19.75 billion project will impact 355 households and 43 community forests, with no land acquisition needed. The project is expected to improve connectivity and boost trade.
Upper Rawakhola Hydropower Project Resumes After Compensation Agreement
Operations at the Upper Rawakhola Hydropower Project resumed after an agreement was reached with locals from Kepilasgadhi Rural Municipality regarding compensation.
An all-party meeting led by Chairperson Samir Rai agreed to compensate landowners within 35 days, resolving the dispute that had led to the suspension of operations.
Health Insurance Reform Advances with New Report
Health Minister Pradeep Paudel announced that the government is moving forward with reforms in the health insurance sector. Despite budget constraints, the government aims to expand coverage, especially in rural areas, and improve affordability for marginalized communities.
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