KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s stock market has seen notable growth, with the NEPSE index approaching 2,900 points, driven by increased investor confidence following the mid-term monetary policy review.
Sectors such as finance, tourism, and manufacturing experienced significant gains, while market capitalization hit a record high of NPR 47.19 trillion.
At the same time, the government is addressing economic concerns, with former finance secretaries urging bold reforms to boost investment and reduce the informal economy.
However, other developments such as the LPG industry’s protest, a ban on poultry imports due to bird flu concerns, and a surge in grain imports reflect challenges in various sectors.
Furthermore, the government is working on legislation to regulate e-commerce and address misleading advertisements.
The US dollar exchange rate in Nepal has also reached an all-time high, reflecting broader economic dynamics.
Nepal’s Stock Market Approaches 2,900 Points
Nepal’s stock market saw a significant jump on Sunday, with the NEPSE index rising by 75.24 points to reach 2,890.
Investor sentiment improved following the mid-term monetary policy review. The total trading volume reached NPR 14.25 billion, with over 291 million shares from 302 companies exchanged.
Sectors such as finance, hotels, tourism, life insurance, and manufacturing experienced increases of more than 4%, while companies like Himalayan Distillery, Guardian Micro Life, and Nepal Life Insurance hit positive circuit limits.
Former Finance Secretaries Advocate for Bold Economic Reforms
Finance Ministry held discussions on economic reforms with former finance secretaries, who recommended drastic measures like cutting unnecessary projects, prioritizing large investments, improving fiscal federalism, and ensuring greater accountability in capital expenditures.
They also called for reducing the informal economy, reforming the financial sector, and bringing anti-money laundering efforts under ministry control. Other key suggestions included boosting foreign investments, enhancing climate finance, ensuring policy stability, and improving the overall business environment.
Stock Market Capitalization Hits Record High
Nepal’s stock market capitalization reached a new peak of NPR 47.19 trillion as the NEPSE index rose by 75.24 points (2.67%) to 2,890.
The previous record was NPR 47.65 trillion on Shrawan 31. The NEPSE has been on an upward trend for nine consecutive days, pushing the market value higher. Today’s share trading exceeded NPR 14.25 billion, reflecting strong investor confidence and sustained market momentum.
Brokerage Firms Experience Robust Buying Activity with Nasa Securities Leading
On the first trading day of the week, seven brokerage firms led in share purchases, while three led in sales.
Nasa Securities topped the list with purchases amounting to NPR 94.49 crore and sales worth NPR 70.66 crore. Online Securities followed with purchases of NPR 46.45 crore and sales of NPR 59 crore.
Sunny Securities secured third place with purchases of NPR 53.54 crore and sales of NPR 51.89 crore.
Other notable firms included Vision Securities, Imperial Securities, Aryatara Securities, and Dynamic Money Manager, all showing significant purchase volumes.
On the other hand, Bhrikuti Stock Dealer, Shrihari Securities, and Shri Krishna Securities recorded significant sales. Overall, there was a noticeable dominance of buyers in the market today.
Mutual Fund Profits Jump by 39.50 percent
Nepal’s mutual funds posted a profit of NPR 3.88 billion by the end of Magh, marking a 39.50% increase from the previous month’s NPR 2.78 billion.
Only two funds incurred losses, a significant improvement compared to six funds in Poush.
The Net Asset Value (NAV) of all funds rose as the NEPSE index increased by 3.55%. Prabhu Select Fund led with a profit of NPR 225.1 million, while NIBL Samriddhi Fund-2 and Mega Mutual Fund-1 reported losses.
NRB Eases Deposit Rules for Banks with High Non-Performing Loans:
Nepal Rastra Bank (NRB) has revised its policy on employee deposits, allowing banks with non-performing loans (NPLs) of up to 8%, an increase from the previous 5%.
This adjustment aims to help institutions attract employee deposits amid rising bad loans. Banks must ensure that total NPLs remain below 8%, net NPLs below 3%, have been in operation for at least two years, and meet capital adequacy requirements.
Tourist Arrivals in Nepal Show Stability, 176,000 in First Two Months
A total of 176,000 tourists visited Nepal in the first two months of 2025, according to the Department of Immigration.
In January, 79,991 tourists arrived, and in February, 96,880 tourists visited. The increase compared to 2024 was minimal, with only 345 more arrivals. Notably, the number of tourists from SAARC countries dropped to 30,000 from 35,000 last year, while arrivals from other regions saw slight growth.
NEA Focuses on Pumped Storage Hydropower for Energy Security
The Nepal Electricity Authority (NEA) is advancing its pumped storage hydropower projects to stabilize electricity demand and bolster energy security.
Out of 156 identified sites, 33 projects totaling 42,000 MW have been shortlisted. Feasibility studies are ongoing for the 332 MW Sharpu Tal (Rukum West) and 200 MW at the Dudh Koshi Reservoir.
NRB to Invest Over NPR 4 Billion in Fixed Deposits
Nepal Rastra Bank (NRB) plans to invest NPR 4.79 billion from its various funds into fixed deposits with banks and financial institutions.
Of this, NPR 3.20 billion will be allocated to commercial banks, NPR 601 million to national-level development banks, and NPR 200 million to finance companies.
NRB has invited interest rate proposals from institutions, with a submission deadline of March 3, 2025. The fixed deposit term will be from March 12, 2025, to March 12, 2026.
Government Introduces Bills to Split CAAN, Sparking Concerns
Nepal has tabled two bills in Parliament to divide the Civil Aviation Authority into a regulatory body and a service provider in a bid to remove Nepal from the EU’s air safety concern list. However, aviation workers argue that simply splitting CAAN won’t guarantee safety.
Critics point out that the bills overlook key recommendations from ICAO, such as financial oversight of airlines and independent accident investigations.
They urge Parliament to address these gaps before passing the legislation.
Nepal Securities Board Halts Listings for 42 Hydropower Companies
The Nepal Securities Board has suspended IPO approvals for 42 hydropower companies due to concerns about their net worth, following directives from the Public Accounts Committee. Although only three companies—Richett Hydropower, Beni Hydropower, and Ambling Hydropower—fell below the NPR 90 per share threshold, the move has led to the suspension of IPOs worth NPR 18.31 billion.
Former Nepal Insurance Authority Chief Surya Prasad Silwal Acquitted:
Surya Prasad Silwal, the former chairman of the Nepal Insurance Authority, has been acquitted by the Special Court in a forgery and corruption case. The CIAA had accused him of submitting false information and illegally holding office. Despite his acquittal, Silwal will not be reinstated as Sharad Ojha has already been appointed as the new chairman.
Social Security Fund Updates Operational Guidelines:
The Social Security Fund (SSF) has amended its Operational Guidelines for the fifth time, introducing new benefits and stricter provisions for 2.047 million contributors. The key changes include extended benefits for children, higher medical coverage (up to NPR 5 lakh), lifelong health benefits for retirees, and revised contribution allocations. Survivor benefits now require at least 12 months of contributions, and the base salary calculation will now be based on an average of 24 months, up from three.
Gas Shortage Threatens as LPG Industry Protests
The Nepal LP Gas Industry Association has ceased purchasing Product Delivery Orders (PDOs) from today, halting gas imports from India.
Without imports, cylinder refills and market supply will stop. The industry temporarily suspended protests but has raised concerns over the government’s failure to address its demands.
PDOs, mostly issued from Birgunj, were not purchased today, leading to fears of a potential cooking gas shortage.
Health Minister Seeks Japan’s Support for Kanti Hospital Expansion
Health Minister Pradeep Paudel has requested Japan’s assistance in expanding Kanti Children’s Hospital to 1,000 beds.
During a meeting with Japanese Ambassador Toru Maeda, Paudel emphasized the need for specialized pediatric infrastructure in Nepal and sought Japan’s help in implementing digital X-ray distribution.
Ambassador Maeda expressed support, reiterating Japan’s long-standing cooperation with Nepal’s health sector.
Rice and Paddy Imports Rise by 72% Through Birgunj Border
In the first seven months of the current fiscal year, Nepal imported paddy worth NPR 8.68 billion through the Birgunj border, a 72% increase compared to the previous year.
Rice imports also rose to NPR 1.35 billion, while maize imports saw a slight decline to NPR 2.96 billion.
Birgunj Customs reports a surge in grain imports, despite Nepal being an agricultural country, highlighting the growing reliance on foreign supplies.
New Law Targets Misleading Ads and Unregulated Trade:
The government is preparing to regulate e-commerce businesses, which have previously operated without oversight, often promoting misleading advertisements.
The newly passed E-Commerce Act will cover both goods and services, including utilities, IT, healthcare, banking, and tourism.
The bill, drafted by the Ministry of Industry, Commerce, and Supplies, has been unanimously approved by the House of Representatives, bringing online trade under legal scrutiny.
Parsa Administration Imposes Ban on Poultry Imports
The Parsa District Administration Office has imposed a complete ban on the import of chickens, chicks, and white eggs from India following a bird flu outbreak in neighboring border areas.
The decision, made in a meeting chaired by Chief District Officer Ganesh Aryal, aims to prevent the virus from entering Nepal.
US Dollar Exchange Rate Hits Record High in Nepal
The exchange rate for the US dollar in Nepal has reached a new high. The buying rate stands at NPR 139.70, and the selling rate is NPR 140.30.
Similarly, the Euro is trading at NPR 145.24/145.86, the Pound Sterling at NPR 175.84/176.60, and the Swiss Franc at NPR 154.73/155.40. The exchange rates for the Australian, Canadian, and Singapore dollars have also fluctuated.
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