KATHMANDU: Welcome to Nepal News’ Evening Economic Brief, your essential update on Nepal’s key financial developments. Stay ahead with concise insights on market trends, economic indicators, and policy shifts. Whether it’s stock movements, foreign exchange reserves, or major financial decisions, we deliver the most relevant data in a clear, digestible format. This economic briefing keeps you informed on Nepal’s evolving economic landscape. Here are today’s top updates:

NEPSE Drops by 12.38 Points, Turnover Reaches Rs. 4.56 Arba: The Nepal Stock Exchange (NEPSE) fell by 12.38 points (0.46%) today, closing at 2,669.76. This follows a previous session decline of 14.88 points. The index fluctuated between 2,685.87 and 2,666.69 throughout the session.

A total of 9.59 million shares from 312 companies were traded through 55,476 transactions, generating a turnover of Rs. 4.56 Arba. Nepal Reinsurance Company Limited (NRIC) led with Rs. 28.21 Crores in transactions, closing at Rs. 1,277.90. Dolti Power Company Limited (DOLTI) was the top gainer, rising 7.53%, while two companies saw a 10% drop.

Among sectoral indices, the Life Insurance Index posted the highest gain at 0.03%, while the Finance Index suffered the largest drop at 1.35%.

Nepal’s Imports and Exports Surge in First Eight Months of FY: In the first eight months of the current fiscal year, Nepal imported goods worth Rs 11.45 trillion, an 11.8% increase from Rs 10.30 trillion in the same period last year. After two years of negative growth, imports have been rising for the past three months, driven by crude soybean oil imports and exports. Exports also saw a significant 57.2% rise, reaching Rs 1.58 trillion, compared to Rs 1 trillion last year. Nepal’s total foreign trade during this period stood at Rs 13.03 trillion, with a trade deficit of Rs 9.87 trillion.

Over 7,000 EVs Imported to Nepal in Nine Months: In the first nine months of FY 2081/82, Nepal imported 7,080 electric vehicles (EVs), including cars, jeeps, and vans, worth Rs. 16.64 billion, according to the Customs Department. This marks a 10.02% increase from last year’s 6,435 units worth Rs. 15.81 billion. China remains the largest EV supplier, accounting for 74.42% of total imports, with 5,269 units worth Rs. 13.08 billion. India follows with 1,775 EVs worth Rs. 3.32 billion. Other suppliers include the U.S. and South Korea.

Most imported EVs have power ratings between 51–100 kW, with 3,879 units worth Rs. 9.69 billion. Lower-power (50 kW) and higher-power (101–300 kW) EVs were also imported in smaller numbers. In February alone, Nepal imported 824 EVs, continuing the growing trend in electric vehicle adoption.

PM Oli Announces Startup Loan Aid for 500 Entrepreneurs: Prime Minister KP Sharma Oli has announced that the government will provide startup loan assistance to at least 500 entrepreneurs this year. Speaking in the House of Representatives, he stated that the selection process for concessional loans to encourage innovation and entrepreneurship is in its final stage. Oli emphasized the government’s efforts to improve the business climate, attract investment, create jobs, and reduce trade deficits through policy reforms.

TIA to Operate 18 Hours Daily from March 31: Tribhuvan International Airport (TIA) will extend its daily operations to 18 hours starting March 31. Previously, flights were restricted to 10 hours due to ongoing infrastructure upgrades. With 70% of construction completed, authorities plan to open an additional two hours for flights. Full upgrades, including taxiways and parking, are expected within 1.5 years. The government and the Asian Development Bank have invested Rs. 15 billion in the project.

Nepal Faces Trade Deficit with 126 Countries, Surplus with 34: In the first eight months of the current fiscal year, Nepal recorded a trade deficit with 126 countries and a surplus with 34, according to the Customs Department. The highest trade deficit was with India at Rs 563.67 billion, followed by China (Rs 217.06 billion), Argentina (Rs 46.47 billion), and Ukraine (Rs 18.55 billion). Nepal exported goods worth Rs 67.38 billion to Afghanistan while importing only Rs 1.59 billion, resulting in a Rs 657.9 million trade surplus. Other trade surpluses were recorded with Denmark (Rs 189 million) and Russia (Rs 25 million).

Government Committed to Controlling Inflation-PM Oli: Prime Minister KP Sharma Oli assured lawmakers that the government is committed to checking inflation. Speaking in the House of Representatives, he highlighted strict market monitoring to prevent black marketeering and ensure smooth supply chains, especially in remote areas. Oli noted that inflation was lower this fiscal year (4.16%) compared to last year (5.01%). He emphasized subsidies for agriculture to stabilize food prices. On another note, he reiterated government support for burn victims through the Acid and Hazardous Chemicals Act, 2079.

Government to Amend Laws for Infrastructure in Protected Areas: The government has decided to amend laws to align with the Supreme Court’s ruling on infrastructure development in national parks, reserves, and conservation areas. A meeting at the Office of the Prime Minister resolved to revise legal provisions to balance environmental conservation and development.

Energy Minister Deepak Khadka stated that the ruling challenges energy projects, especially transmission lines. Law Minister Ajay Kumar Chaurasiya suggested discussions with judges and legal revisions in energy, tourism, and irrigation. Forest Minister Ain Bahadur Shahi assured efforts to resolve forestry sector issues.

Chief Secretary Eaknarayan Aryal warned that such rulings could hinder development, affecting Nepal’s goal of generating 28,500 MW of electricity in a decade. The government plans to amend the National Parks Act, Forest Act, and Environment Protection Act, instructing the Ministry of Forests to propose necessary changes.

NEPSE Without CEO for Two Months, Acting CEO Implements Key Reforms: NEPSE has been without a CEO for two months, though five candidates have been shortlisted. Despite this, Acting CEO Niranjan Phuyal has initiated key reforms, including implementing average price determination in the last 15 minutes of trading. Additionally, the SME platform regulation has been finalized. Once approved by the Securities Board, software procurement will begin, enabling SMEs with less than Rs. 250 million capital to issue IPOs.

Banks Struggle with Loan Recovery as Bad Loans Near 5%: Nepal’s banks are facing a loan recovery crisis, with bad loans continuously rising over the past two years. Due to economic slowdown, many banks are unable to distribute dividends, and their profits have declined. Some banks have bad loan rates exceeding 5%, forcing CEOs to personally meet borrowers for loan repayments. Despite efforts, neither principal nor interest recovery is improving. The real estate market slowdown has also hindered collateral sales. With capital adequacy requirements tightening, banks are under pressure from Nepal Rastra Bank to improve recovery or face restrictions on lending and dividend distribution.

Nepal Requests 230 MW Power from India Amid Load Shedding Crisis: Energy Minister Dipak Khadka has formally requested India to supply 230 MW of electricity during peak evening hours (6–10 PM). Nepal, which imports around 600 MW daily, has faced severe load shedding, especially in industries, after India restricted imports to “solar hours” (6 AM–6 PM) from March 15. This limitation has led to 12-hour power cuts in industries, negatively impacting the economy. Nepal and India had earlier agreed on new power tariffs for 2025/26, but regulatory approvals are pending. The government has also sought clarification from NEA MD Kulman Ghising over allegedly expensive power purchase agreements.

FNCCI Expresses Concern Over 12-Hour Industrial Load Shedding: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has expressed serious concern over recurring power cuts affecting the industrial sector. In a statement, FNCCI highlighted that industries nationwide are facing up to 12 hours of unannounced load shedding, severely impacting production and business operations. Frequent power disruptions are damaging machinery, increasing maintenance costs, and threatening economic stability. FNCCI urged the government to ensure uninterrupted electricity supply for industries and emphasized the need for long-term investments in energy infrastructure, improved power management, and stronger collaboration with the private sector to support industrial growth.

CNI Urges Immediate Action Against Industrial Load Shedding: The Confederation of Nepalese Industries (CNI) has strongly objected to the ongoing 12-hour daily load shedding affecting industries, calling it a severe threat to the economy. In a statement, CNI urged the government and concerned authorities to ensure uninterrupted electricity supply to industries. Frequent power cuts have increased production costs, hindered industrial growth, and created uncertainty for new investments. CNI criticized the Nepal Electricity Authority (NEA) for prioritizing electricity exports while domestic industries suffer. It emphasized that electricity is a fundamental raw material for industries and warned that continued disruptions could severely impact Nepal’s investment climate.

Policy Reforms to Address Small-Scale Hydropower Issues: Energy Minister: Minister for Energy, Water Resources, and Irrigation, Dipak Khadka, pledged policy-level reforms to resolve challenges faced by small-scale hydropower projects. Speaking at a Green Energy Entrepreneur Nepal event, he emphasized government-private sector collaboration for energy sector growth. Khadka highlighted that the approved energy development roadmap would address private sector concerns. Meanwhile, Green Energy Entrepreneur Nepal Chairperson Surya Prasad Adhikari urged adjustments in power purchase agreements and the removal of alternative power production provisions to support small-scale hydropower projects.

Suyog Shrestha Re-Elected as President of Development Bankers Association Nepal: Suyog Shrestha has been re-elected as the President of the Development Bankers Association Nepal (DBAN). The 19th Annual General Meeting, held in Pokhara, unanimously selected Shrestha, the CEO of Shangri-la Development Bank, for another term. Dinesh Thakali (CEO, Kamana Sewa Development Bank) was elected Vice President, Madhav Prasad Upadhyaya (CEO, Garima Development Bank) as Secretary, and Kapil Dhakal (CEO, Jyoti Development Bank) as Treasurer. The executive committee also includes representatives from Lumbini, Shine Resunga, Mahalaxmi, Green, and Saptakoshi Development Banks.

Gold Price Stable at Rs 176,000 Per Tola: The price of gold remained stable today, with hallmark gold set at Rs 176,000 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association. Similarly, silver is being traded at Rs 2,030 per tola in the domestic market.