KATHMANDU: Get the latest on Nepal’s economic landscape with Nepal News’ Evening Economic Briefing—a concise roundup of the day’s key financial developments. Here’s what’s making headlines tonight.

Nepal’s Stock Market Surges Near 2,900 Points: Nepal’s stock market witnessed a sharp rise on Sunday, with the NEPSE index climbing 75.24 points to close at 2,890. Following the mid-term monetary policy review, investor confidence has strengthened. Total trading volume reached NPR 14.25 billion, with over 291 million shares of 302 companies exchanged. Sectors like finance, hotels, tourism, life insurance, and manufacturing surged over 4%, while Himalayan Distillery, Guardian Micro Life, and Nepal Life Insurance hit positive circuits.

Former Finance Secretaries Call for Bold Economic Reforms: The Finance Ministry discussed economic reforms with former finance secretaries, who urged bold steps like cutting non-productive projects, prioritizing large-scale investments, enhancing fiscal federalism, and ensuring capital expenditure accountability. They emphasized reducing the informal economy, financial sector reforms, and bringing anti-money laundering under ministry control. Other key suggestions included boosting foreign investment, strengthening climate finance, ensuring policy stability, and improving the business environment.

Stock Market Capitalization Reaches Record High: Nepal’s stock market capitalization hit a record NPR 47.19 trillion as NEPSE surged 75.24 points (2.67%) to 2,890 points. The previous highest was NPR 47.65 trillion on Shrawan 31. NEPSE has been rising for nine consecutive days, pushing market value higher. Today, share trading exceeded NPR 14.25 billion, indicating strong investor confidence and sustained market momentum.

Brokerage Firms See Strong Buying Trend as Nasa Securities Leads with Highest Transactions: On the first trading day of the week, seven brokerage firms dominated in share purchases, while three led in sales. Nasa Securities recorded the highest transactions, with purchases worth NPR 94.49 crore and sales of NPR 70.66 crore. Online Securities followed, with purchases of NPR 46.45 crore and sales of NPR 59 crore. Sunny Securities secured the third spot, with purchases totaling NPR 53.54 crore and sales of NPR 51.89 crore. Other leading firms included Vision Securities, Imperial Securities, Aryatara Securities, and Dynamic Money Manager, which saw significant purchase volumes. Meanwhile, Bhrikuti Stock Dealer, Shrihari Securities, and Shri Krishna Securities recorded notable sales figures. Overall, the market saw a higher dominance of buyers over sellers today.

Mutual Fund Profits Surge by 39.50%: Mutual funds in Nepal recorded a profit of NPR 3.88 billion by the end of Magh, a 39.50% increase from the previous month’s NPR 2.78 billion. Only two funds faced losses, compared to six in Poush. The Net Asset Value (NAV) of all funds improved as the NEPSE index rose 3.55%. Prabhu Select Fund led with NPR 225.1 million in profit, while NIBL Samriddhi Fund-2 and Mega Mutual Fund-1 reported losses.

NRB Eases Deposit Rules for Banks with NPLs: Nepal Rastra Bank (NRB) has revised its employee deposit policy, allowing banks and financial institutions with non-performing loans (NPL) of up to 8%—up from the previous 5%—to attract employee deposits.

With rising bad loans, NRB expanded eligibility for institutions holding fixed deposits from its staff. Banks must keep total NPL below 8%, net NPL below 3%, operate for at least two years, and meet capital adequacy requirements.

Tourist Arrivals in Nepal Remain Steady, 176,000 in First Two Months: In the first two months of 2025, 176,000 tourists visited Nepal, according to the Department of Immigration. 79,991 arrived in January, while 96,880 came in February.

Compared to 2024, arrivals increased by only 345. Notably, tourists from SAARC countries declined to 30,000 from 35,000 last year. While arrivals from other regions grew slightly, overall growth remained minimal.

NEA Prioritizes Pumped Storage Hydropower for Energy Security: Nepal Electricity Authority (NEA) is advancing pumped storage hydropower projects to stabilize electricity demand and strengthen energy security. Of 156 identified sites, 33 projects totaling 42,000 MW have been shortlisted. Feasibility studies are underway for 332 MW Sharpu Tal (Rukum West) and 200 MW at Dudh Koshi Reservoir.

Nepal Rastra Bank to Invest Over Rs 4 Billion in Fixed Deposits: Nepal Rastra Bank (NRB) is set to invest NPR 4.79 billion from its various funds into fixed deposits of banks and financial institutions. Of this, Rs 3.20 billion will go 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 will be for 366 days, from March 12, 2025, to March 12, 2026.

Government Tables Bills to Split CAAN, Raises Concerns: Nepal has introduced two bills in Parliament to split the Civil Aviation Authority into a regulator and service provider, aiming to remove Nepal from the EU’s air safety concern list. However, aviation employees argue that merely dividing CAAN won’t ensure safety. The bills ignore ICAO’s key recommendations, including financial oversight of airlines and independent accident investigations. Critics urge Parliament to address these gaps before passing the legislation.

Nepal Securities Board Halts 42 Hydropower Companies’ Listings: Nepal Securities Board has suspended IPO approvals for 42 hydropower companies, citing net worth concerns based on directives from the Public Accounts Committee. Despite only three companies—Richett Hydropower, Beni Hydropower, and Ambling Hydropower—falling below the NPR 90 per share threshold, IPOs worth NPR 18.31 billion have been stalled.

Former Nepal Insurance Authority Chief Surya Prasad Silwal Acquitted: Former chairman of the Nepal Insurance Authority, Surya Prasad Silwal, has been acquitted by the Special Court in a forgery and corruption case. The CIAA had accused him of submitting false details and unlawfully holding office. Silwal won’t be reinstated, as Sharad Ojha has already been appointed chairman.

Social Security Fund Revises Rules: The Social Security Fund (SSF) has amended its Operational Guidelines for the fifth time, adding new benefits and stricter provisions for 2.047 million contributors. Key changes include extended benefits for children, higher medical coverage (up to NPR 5 lakh), lifelong health benefits for retirees, and adjusted contribution allocations. Survivor benefits now require 12+ months of contributions, while base salary calculations will consider 24 months’ average instead of 3.

Indian Stock Market Declines, Nepse Surges Amid Capital Shift: India’s Nifty index has declined for five consecutive months, its worst streak in 30 years, dropping 12%. The Sensex is also falling.

Some analysts believe this downturn may benefit Nepal’s stock market. After hitting 2,588 points on January 16, Nepse surged 137 points (5%) in two weeks, crossing 2,860. Experts suggest capital outflow from India could push Nepse towards new highs.

Surya Prasad Silwal to Receive Full Salary and Benefits After Acquittal: With his acquittal by the Special Court, former Nepal Insurance Authority Chairman Surya Prasad Silwal’s entire tenure will be counted, entitling him to the remaining salary and benefits. Silwal was dismissed after the CIAA filed forgery and corruption charges, but he will now receive compensation until his term ended.

Gas Shortage Looms as LPG Industry Begins Protest: The Nepal LP Gas Industry Association has halted the purchase of Product Delivery Orders (PDOs) from today, disrupting gas imports from India. Without imports, cylinder refilling and market supply will stop. Despite a temporary protest suspension, the government failed to address industry demands. PDOs, mostly issued from Birgunj, were not purchased today, raising concerns over a potential cooking gas shortage.

Health Minister Seeks Japan’s Support for Kanti Hospital Expansion: Health Minister Pradeep Paudel has sought Japan’s support in expanding Kanti Children’s Hospital to 1,000 beds. In a meeting with Japanese Ambassador Toru Maeda, Paudel emphasized Nepal’s need for specialized pediatric infrastructure. He also requested assistance in implementing digital X-ray distribution. In response, Ambassador Maeda expressed a positive stance, reaffirming Japan’s long-standing cooperation with Nepal’s health sector.

Rice and Paddy Imports Surge by 72% Through Birgunj Border in Seven Months: 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 from last year. Rice imports also rose to NPR 1.35 billion, while maize imports slightly declined to NPR 2.96 billion. Birgunj Customs reports a surge in grain imports despite Nepal being an agricultural country, highlighting the growing dependence on foreign supplies.

New Law to Curb Misleading Ads and Unregulated Trade: The government is set to regulate e-commerce businesses, which have so far operated freely, often promoting misleading advertisements. The newly passed E-Commerce Act covers both goods and services, including utilities, IT, healthcare, banking, and tourism. The bill, drafted by the Ministry of Industry, Commerce, and Supplies, was unanimously approved by the House of Representatives, bringing online trade under legal scrutiny.

Parsa Administration Bans Poultry Imports: The Parsa District Administration Office has imposed a complete ban on importing chickens, chicks, and white eggs from India following a bird flu outbreak in border areas. The decision was made in a meeting chaired by Chief District Officer Ganesh Aryal, who emphasized the need for heightened precautions to prevent the virus from entering Nepal.

Unknown Disease Kills Pigs in Baglung, Farmers Worried: An unidentified disease has killed six pigs in Bareng-2, Hugdishir, and Bareng Bazaar within ten days, leaving farmers concerned. Infected pigs showed symptoms like fever, loss of appetite, and diarrhea. Veterinary officials suspect contaminated feed and are conducting lab tests. While African Swine Fever isn’t confirmed, authorities remain cautious. Last year, a similar outbreak in Baglung killed 400 pigs, causing over NPR 20 million in losses.

Surge in US Dollar Exchange Rate in Nepal: The exchange rate of the US dollar has reached an all-time high in Nepal. Today, the buying rate stands at NPR 139.70, while the selling rate is NPR 140.30. Similarly, the Euro is trading at 145.24/145.86, the Pound Sterling at 175.84/176.60, and the Swiss Franc at 154.73/155.40. The exchange rates of the Australian, Canadian, and Singapore dollars have also fluctuated.