KATHMANDU: Get today’s business update with Nepal News’ Evening Economic Briefing—a concise roundup of the day’s key financial developments in Nepal. Here’s today’s business news summary:

NEPSE Drops 30.36 Points as Investors Book Profits: The Nepal Stock Exchange (NEPSE) index fell by 1.05% (30.36 points) on March 4, closing at 2,846.30 points after a nine-day rally. Turnover declined to Rs 12.94 billion from Rs 14.28 billion. All sectoral indices ended lower, with Manufacturing & Processing falling the most (-2.21%). Guardian Micro Life Insurance hit the upper circuit, while Sindhu Bikash Bank plunged 10%. Himalayan Reinsurance led trading with Rs 1.09 billion in transactions. Analysts attributed the decline to profit booking.

Nepal Rastra Bank Issues 7-Point Directive for Financial Institutions: Nepal Rastra Bank has issued a seven-point directive covering aspects from the mid-term monetary policy review. It reduces the loan loss provision for good loans from 1.10% to 1.00% for banks and financial institutions. Infrastructure loans with a grace period over a year must allocate proportional loan loss provisions annually. Agricultural loans for crops like silk, cotton, and fruits will have a phased provision structure. Electric vehicle loans are capped at a 60% loan-to-value ratio.

PM’s Employment Programme Struggles as Loan Nears Exhaustion: The Prime Minister’s Employment Programme, launched by KP Sharma Oli in 2018 with a Rs 13.62 billion World Bank loan, remains ineffective. Despite 800,000 applicants this year, only 3,334 have received jobs. The government allocated Rs 4.85 billion for 5,473 projects, but job creation has stalled. Officials cite budget cuts, aiming to employ 60,000 people. Experts warn against loan mismanagement, urging effective implementation to prevent further failures in Nepal’s youth employment initiative.

NRB Lowers Loan Loss Provision to 1%, Revises Vehicle Loan Ratio: Nepal Rastra Bank (NRB) has revised its unified directive, reducing the general loan loss provision from 1.10% to 1.00% as per the mid-term monetary policy review. Provisions for other loan categories remain unchanged: 5% for closely monitored, 25% for substandard, 50% for doubtful, and 100% for bad loans. Additionally, NRB has capped the loan-to-value ratio at 60% for both electric and personal-use vehicles, revising the previous 50% limit for regular vehicles and 80% for electric ones.

SEBON Approves New Rule for Determining Closing Price in NEPSE: The Securities Board of Nepal (SEBON) has approved Nepal Stock Exchange’s (NEPSE) request to implement a new rule for determining the closing price of stocks. Instead of the last traded price at 3:00 PM, the new rule will consider the average price of the last 15 minutes (2:45–3:00 PM) as the closing price. This aims to curb abnormal price fluctuations and enhance market stability. NEPSE will conduct system testing, likely starting this Friday, before full implementation within a month.

Govt Allocates Rs 3.84 Billion for Health Insurance and Free Treatments: The Ministry of Finance has released Rs 3.84 billion for health insurance payments and other medical programs. Finance Minister Bishnu Prasad Paudel approved the allocation, which includes Rs 3 billion for the Health Insurance Board, Rs 600 million for senior citizens’ treatment, and Rs 240 million for free heart disease treatment at Sahid Gangalal National Heart Center. The funds aim to improve healthcare accessibility and support vulnerable populations.

Insurance Companies Must Pay Regulatory Fees Within 30 Days of Quarter-End: Nepal Insurance Authority has mandated that insurance companies must pay regulatory fees within 30 days of each quarter’s end, as per the Insurance Regulation 2081. While the Insurance Act 2079 required annual payments, the new rule ensures quarterly compliance.

Insurers must pay 0.75% of their annual gross premiums as regulatory fees, while micro-insurers will pay 0.5%. Non-compliance will result in a 10% annual interest penalty. The regulation also allows fee adjustments based on final audited financial statements.

Govt Seeks Rs 16 Billion for Airport Expansions in Karnali, Lumbini: The Tourism Ministry has formally requested the Finance Ministry to secure Rs 16 billion for land acquisition to expand Surkhet, Jumla, and Tarigaon airports. The Cabinet approved funding on February 27, following CAAN’s recommendations. Surkhet Airport needs Rs 10 billion, Tarigaon Rs 5 billion, and Jumla Rs 1 billion. Past expansion efforts stalled due to funding gaps and protests. Meanwhile, CAAN has begun land acquisition for Jumla Airport’s runway and terminal expansion.

Government and Gas Industry Reach Agreement, Strike Ends: The government and protesting gas industry representatives have reached a five-point agreement, ending the strike. Nepal LP Gas Industry Association had halted gas imports since Sunday, demanding higher profit margins and overhead adjustments. The Nepal Oil Corporation (NOC) has agreed to increase operational costs by Rs 12.75 per cylinder, assuring consumers won’t bear the burden. With this, gas supply will resume from Wednesday. Former association president Gokul Bhandari confirmed the decision to restart imports.

Six Firms Shortlisted for Loan Portfolio Review of Nepal’s Top 10 Banks: Nepal Rastra Bank has shortlisted six firms to conduct a loan portfolio review of the country’s 10 largest commercial banks. The process, initially launched last fiscal year, was delayed due to procurement issues. The shortlisted firms include Deloitte Partners (Sri Lanka), Howlader Yunus & Co. (Bangladesh), KPMG Assurance & Consulting Services (India), Mehra-JKSS-SSBDI JV (India-Nepal), MSKA & Associates (India), and SRBA & BK Agarwal & Co. JV (India-Nepal). The final selection will be based on third-quarter financial data.

PM Oli Warns Against Paying Workers Below Minimum Wage: Prime Minister KP Sharma Oli has warned that employing workers for less than the minimum wage is punishable by law. Speaking at the 78th anniversary of the Nepali Trade Union Movement, he highlighted reports of nurses being underpaid. Oli emphasized that industries thrive only when workers are satisfied and called for dialogue between the government, employers, and workers. He also urged global collaboration to combat climate change’s impact on the Himalayas. Several labor leaders and mountaineers were honored.

Finance Minister Pushes for Urgent Passage of Banking and Securities Bills: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has emphasized the swift passage and implementation of the Bank and Financial Institutions (First Amendment) Bill, 2080, and the Securities (First Amendment) Bill, 2081. Addressing the Finance Committee, he urged quick deliberations to avoid delays in law-making. The committee also discussed amending customs laws to streamline trade, enhance technology use, and align with international agreements like the Kyoto Convention and WTO Trade Facilitation Agreement.

NRB Allows Bank Accounts in Children’s Names: Nepal Rastra Bank (NRB) has clarified that there is no age restriction for opening a bank account. In a financial awareness notice, NRB encouraged parents to introduce children to banking early and instill saving habits. Accounts can be opened using a birth certificate or minor identification card, with guardians managing them until the child becomes legally adult. Once of age, account control transfers to the individual upon updating necessary details at the bank.

Gold and Silver Prices Rise in Nepal: Gold and silver prices have increased in Nepal today. The price of gold has risen by Rs 1,400 per tola, while silver has increased by NPR 25 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold is now trading at Rs 169,500 per tola, up from Rs 168,100 on Monday. Similarly, silver is priced at Rs 1,940 per tola. In the international market, gold is trading around $2,892 per ounce.