KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Gold prices reach record high
Gold prices in Nepal reached an all-time high, with fine gold priced at Rs. 1,76,800 per tola—up Rs. 600 from the previous day on Sunday. Similarly, Tejabi gold climbed to Rs. 1,76,100 per tola. This increase surpasses the previous record set on March 28, 2025.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the surge is fueled by strong domestic and international demand, continuing upward market pressure.
NEPSE surges 29.82 points to close at 2,693.12
The Nepal Stock Exchange (NEPSE) on Sunday saw a 29.82-point (1.11%) increase, closing at 2,693.12, extending gains after a 41.43-point rise in the previous session. The index fluctuated between a high of 2,718.95 and a low of 2,657.88, with total trading turnover reaching Rs. 7.56 Arba.
Himalayan Reinsurance Limited (HRL) led the market with Rs. 69.19 Crores in trades, settling at Rs. 1,039 per share. Joshi Hydropower Development Company Ltd (JOSHI) topped the gainers’ list with a 9.94% increase, while Prabhu Smart Fund (PRSF) recorded the steepest decline of 5.79%.
India approves additional 600 MW electricity import
India has approved an additional 600 MW of electricity imports via the Indian Energy Exchange (IEEX), reducing load shedding in Nepal’s Sunsari-Morang industrial corridor to six hours.
Previously, industries in the region faced up to 12-hour power cuts daily, severely affecting production. With improved electricity supply, industrial production cuts have now been reduced from 70% to 50%.
The Nepal Electricity Authority (NEA) implemented the power supply increase starting Saturday and continues efforts to eliminate load shedding entirely.
Nepal Insurance Authority to introduce regulations to curb misuse of employee training funds
The Nepal Insurance Authority is set to roll out new guidelines to prevent insurance firms from misusing funds allocated for employee training and capacity building.
Currently, insurance companies allocate 2% of their profits for training purposes, but reports indicate these funds are often misused.
Responding to increasing employee complaints and inadequate monitoring, the Authority plans to introduce stricter regulations to ensure proper utilization. These guidelines aim to enhance accountability and transparency within the insurance sector.
Nepal commits to reviewing loan portfolios of top 10 banks by 2025
Nepal has pledged to finalize a loan portfolio review of its ten largest commercial banks by December 2025 as part of its agreement with the International Monetary Fund (IMF) for the Extended Credit Facility (ECF).
The evaluation, set to be conducted by an international auditor, will examine loan classification, provisioning, and regulatory compliance. After an unsuccessful prior attempt to appoint an auditor, the process is now scheduled to begin by May 2025.
This review aims to address concerns over rising non-performing loans (NPLs) and assess the overall financial health of Nepal’s banking sector.
SC suspends work on Pathibhara Cable Car Project
The Supreme Court of Nepal has issued a temporary interim order to halt ongoing construction of the Pathibhara Cable Car project in Taplejung.
Issued by a bench led by Justice Sharanga Suvedi on Chaitra 13, the order was made public on Sunday. The court has summoned the concerned parties for further discussions on Chaitra 26.
This ruling follows a petition by Yam Bahadur Limbu requesting a project suspension. The court has also instructed the relevant authorities to submit written responses within 15 days.
Loan disbursement declines as banks focus on recovering bad loans
Commercial banks in Nepal have significantly reduced loan disbursements in Chait, shifting their focus towards recovering bad loans. Loan issuance plummeted from NPR 23 billion in Falgun to NPR 7 billion in Chait.
Economic sluggishness and the necessity to maintain capital reserves have contributed to this decline.
Although banks are actively addressing bad debts and capital issues, the overall loan disbursement remains low. However, signs of economic recovery, particularly in the construction and wholesale trade sectors, could ease loan recovery challenges in the coming months.
Nepal Securities Board introduces new merger and acquisition guidelines for securities firms
The Nepal Securities Board has unveiled fresh guidelines for the merger, acquisition, and consolidation of securities firms under the Securities Act, 2063.
These new regulations require firms to obtain preliminary approval from the Board within 15 working days of submitting the necessary documents. Companies must also conduct a due diligence audit by an independent evaluator and provide business valuations based on assets, liabilities, and projected cash flows.
The final merger agreement must address ownership structure, employee benefits, and capital restructuring and must be completed within six months of the initial approval.
NRB Governor urges media to maintain accuracy
Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari emphasized the importance of accurate financial reporting during a two-day interaction program hosted by NRB and the Nepal Economic Journalists’ Association (NAFIJ) in Kathmandu.
He urged journalists to ensure factual accuracy to prevent misinformation from affecting public perception. NRB officials also discussed the significant impact financial news has on public trust and economic stability.
The event aimed to enhance journalists’ capacity to report responsibly on financial matters.
Govt mandates 1% revenue contribution to health insurance fund
On March 30, Minister for Health and Population, Pradeep Poudel, announced a new policy requiring Federal Hospital Development Committees (HDCs) to allocate 1% of their total revenue to the Health Insurance Fund.
This move aims to activate the fund, which has remained largely inactive despite its provision under the Health Insurance Act. The Health Insurance Board, with financial backing from the Ministry of Finance, will now have additional resources to expand Nepal’s National Health Insurance Program.
Further policy enhancements are in progress to improve the program’s effectiveness and ensure long-term sustainability.
Karnali River Bridge Project sees delays, only 30% completed
Construction of the Karnali River bridge, connecting Himali Rural Municipality in Bajura and Khatyad Rural Municipality in Mugu, has progressed only 30% since work began in 2021.
Kusheshwar Construction Pvt. Ltd. had been contracted to complete the 105-meter-long bridge by December 2024 at a cost of Rs. 144.9 million.
However, government delays and challenging monsoon conditions have pushed the deadline to mid-April 2025. Once completed, the bridge will replace the existing Bailey bridge, improving connectivity between Bajura, Mugu, and Rara. The Karnali Province government is funding the project.
Nepal showcases IT capabilities at First International Roadshow in US
The Confederation of Nepalese Industries (CNI), in collaboration with AmCham Nepal, hosted Nepal’s first-ever international roadshow for IT and IT-enabled services (ITES) in the United States.
The event, ‘Tech Peak Nepal: Orlando 2025,’ was part of the Shared Services and Outsourcing Week (SSOW) Conference 2025, the world’s largest outsourcing gathering.
Six Nepali tech firms—Sakchha, Innovate Tech, F1Soft, Simjung, Cynical Technology, and Monal Tech—showcased their solutions alongside global industry leaders. The event highlighted Nepal’s skilled workforce, competitive pricing, and potential as a growing hub for IT outsourcing investments.
KAHS approves 50-bed satellite hospital in Dailekh
The Karnali Academy of Health Sciences (KAHS) has approved plans to establish a 50-bed satellite hospital in Rakam Karnali, Dailekh district. The decision was made during KAHS’s 11th senate meeting at the Prime Minister’s Office.
The plan aligns with the government’s initiative to upgrade 15 hospitals to 50-bed facilities. Prime Minister KP Sharma Oli, also the Chancellor of KAHS, urged swift cooperation among stakeholders.
The meeting also saw the appointment of new KAHS Senate Members and was attended by Minister Pradip Paudel and other officials.
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