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

NEPSE Falls by 2.70 Points, Turnover Reaches Rs. 10.10 Arab: The Nepal Stock Exchange (NEPSE) declined by 2.70 points (0.09%) to close at 2,818.43, following a previous loss of 25.16 points. The index fluctuated between 2,834.07 and 2,811.37. Total turnover stood at Rs. 10.10 Arab across 93,895 transactions. Himalayan Reinsurance Limited led turnover with Rs. 1.12 Arab. Guardian Micro Life Insurance and Bhugol Energy gained 10%, while Nabil Debenture 2082 fell 6.84%. The Life Insurance Index saw the highest loss (-0.80%), while Development Banks gained 1.86%.

Finance Ministry Begins Discussions for 2025/26 Budget Formulation: The Ministry of Finance has initiated discussions with various ministries to formulate a disciplined and realistic budget for the 2025/26 fiscal year. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel emphasized avoiding unnecessary transfers and amendments. He stressed prioritizing post-disaster reconstruction and including only implementable projects. Small projects will be phased out, and budget limits will be considered. The discussions included key officials from finance and infrastructure ministries.

Government Forms Committee for Nepal Rastra Bank Governor Appointment: The government has decided to form a recommendation committee to appoint a new Governor of Nepal Rastra Bank. The decision was made in a Cabinet meeting at Baluwatar. With Governor Maha Prasad Adhikari’s tenure ending on Chaitra 24, he will be on forced leave from Chaitra 5 to 15. Meanwhile, multiple contenders are lobbying for the position, presenting economic policy briefings to key stakeholders.

Nepal Rastra Bank Mandates Payment System Operators to Become Public Limited Companies: Nepal Rastra Bank (NRB) has made it mandatory for payment system operators to convert into public limited companies. The Payment Systems Department amended its integrated directive to enforce this provision. While the monetary policy had initially proposed the transition for both payment system operators and service providers, NRB implemented it only for operators. Executive Director Kiran Pandit stated that due to their large capital and network role, they must transition by Asar 2085.

Nepal Faces Rs. 9.15 Billion Annual Loss in Meat and Milk Production Due to FMD: Foot-and-mouth disease (FMD) causes an annual loss of Rs. 9.15 billion in Nepal’s meat and milk production, according to the Ministry of Agriculture and Livestock Development. The newly approved Risk-Based Strategic Plan (RBSP) highlights declining fertility and productivity in livestock. Additionally, Nepal faces a direct economic loss of Rs. 6.44 billion annually. Though primarily affecting cattle and buffaloes, FMD has now spread to goats, pigs, sheep, and even wild animals.

Finance Minister Paudel Urges Focus on Nationally Important Mega Projects: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has urged officials to prioritize projects of national importance for the fiscal year 2082/83 BS. In discussions with the Urban Development and Energy Ministries, he emphasized focusing on mega projects while respecting provincial and local roles. He stated that federalism strengthens when responsibilities are delegated. The upcoming budget will reflect public needs through broad consultations.

National Assembly Endorses Five Government Ordinances: The National Assembly approved five ordinances on Thursday, following the House of Representatives’ endorsement a day earlier. The ordinances include amendments related to good governance, public service, economic procedures, fiscal responsibility, privatization, business environment, investment promotion, and cooperatives. A motion to reject the ordinances was proposed but failed to gain majority support. With this approval, the ordinances move forward, and the National Assembly will reconvene tomorrow.

Construction of 66.3 MW Mid Kaligandaki Hydropower Project Begins: The 66.3 MW Mid Kaligandaki Hydropower Project has commenced in Annapurna Rural Municipality, Myagdi. Promoted by IME Group’s Lagani Hydro Support Pvt Ltd, Rusuwa Multi JV is handling construction. Work has started with a 200-meter approach culvert leading to a 4,800-meter tunnel. The underground power house will connect to a 220 kV substation at Dana. The Rs 12.93 billion project is expected to be completed in three years.

Prachanda Pledges Support for Bhitthamod Dry Port Construction: Former Prime Minister and CPN (Maoist Centre) chair Pushpa Kamal Dahal ‘Prachanda’ has committed to supporting the construction of Bhitthamod Dry Port in Mahottari. During a discussion with Jaleswor Chamber of Commerce and Industry, he emphasized the Maoist-Terai Madhes awareness campaign’s role in border area development. The port, just 225 km from Kolkata, will enhance trade accessibility for all Madhes districts.

Government Seeks Clarification from NEA Chief Kulman Ghising: The government has issued a three-day clarification notice to Nepal Electricity Authority (NEA) Executive Director Kulman Ghising. In Wednesday’s Cabinet meeting, four points were raised, questioning why he should not be removed from his position. The Energy Ministry had previously sought clarifications three times. The latest notice includes concerns over alleged non-cooperation on dedicated and trunk lines. The clarification follows regulations under NEA’s service conditions.

Minister Khadka Attributes End of Load-Shedding to India, Not Kulman Ghising: Energy Minister Deepak Khadka claimed that Nepal’s load-shedding ended due to India’s support, not the efforts of NEA’s Executive Director Kulman Ghising. Responding to queries in the House of Representatives, he credited India for supplying 450 MW of electricity when Nepal’s demand was 425 MW. He emphasized that the then-government, under PM KP Sharma Oli, made policy decisions to import power, playing a crucial role in resolving the crisis.

Minister Bhandari Emphasizes Domestic Investment for Global Market Expansion: Industry, Commerce, and Supplies Minister Damodar Bhandari stressed the need to promote domestic investment to export Nepalese products globally. Responding to queries in the House of Representatives, he highlighted the Export-Import Bill aimed at addressing trade imbalances. He acknowledged high taxation on raw materials as a factor driving up local product prices and emphasized refining the bill through clause-wise discussions.

Life Insurance Policy Surrenders Increase in Seven Months: In the first seven months of FY 2081/82, life insurance policy surrenders surged. A total of 62,523 policyholders from 14 life insurance companies surrendered policies worth Rs. 8.59 billion. In Poush alone, 54,000 policies worth Rs. 7.66 billion were surrendered, rising by 15.04% in Magh. Life Insurance Corporation saw the highest surrender at Rs. 2.59 billion, followed by Nepal Life at Rs. 2.36 billion.

Lawmakers Demand White Paper on US Aid, Address Multiple Issues in HoR: In a House of Representatives session, lawmakers urged the government to issue a white paper on US aid expenditures amid misappropriation allegations. Concerns were raised over US deportations of Nepali citizens, rising gas prices, and unimplemented Public Account Committee directives. Calls were made to honor agreements with teachers and ensure fair government appointments. Amresh Kumar Singh accused the government of bias in appointing a Health Ministry secretary, demanding the Health Minister’s resignation.

NRB Restricts VPN Use for Mobile and Internet Banking: Nepal Rastra Bank has prohibited customers from using Virtual Private Networks (VPNs) for mobile and internet banking. Banks must identify VPN usage and block logins unless an authorized VPN is used. Additionally, financial institutions must conduct Data Center Disaster Recovery (DC-DR) drills at least once every two years and submit a report to NRB within 15 days of completion to ensure cybersecurity and system resilience.

OAG Urges Government to Implement Recommendations for Timely Arrears Settlement: The Office of Auditor General (OAG) has called for the government to enforce its recommendations to settle arrears promptly. Auditor General Toyam Raya emphasized effective auditing and legal compliance at a press conference. While local arrears are decreasing, federal arrears are rising due to limited knowledge and infrastructure. Last year, government offices had arrears of Rs 95.60 billion.

PM Oli Inaugurates Nepal Pulp and Paper Industries: Prime Minister KP Sharma Oli inaugurated the ‘Nepal Pulp and Paper Industries’ in Gaushala, Mahottari. Established by IME Group, the industry will recycle used paper into new paper within Nepal. It is expected to create jobs for around 300 people. Nepal’s annual paper consumption stands at approximately 150,000 metric tonnes.

SLBBL Proposes 14.62507% Dividend for FY 2080/81: Swarojgar Laghubitta Bittiya Sanstha Limited (SLBBL) has proposed a 14.62507% dividend worth Rs. 9.81 crores for FY 2080/81. The board decided on 13.89382% bonus shares (Rs. 9.32 crores) and a 0.73125% cash dividend (Rs. 49.07 lakhs). Distribution awaits central bank approval and AGM endorsement. SLBBL closed at Rs. 1,010.00 yesterday.

NRB Directs Banks to Allow Customers to Control Digital Transactions: Nepal Rastra Bank has instructed banks and financial institutions to enable customers to activate and deactivate digital payment services independently via apps or web portals. The revised Payment System Directive 2080 mandates instant SMS notifications for transactions and additional alerts upon request. Banks must also provide detailed information on fees, transaction limits, interest rates, and benefits when issuing electronic payment cards.

Gold and Silver Prices Surge in Nepali Market: Gold and silver prices in Nepal saw a significant rise on Thursday. According to FENEGOSIDA, fine gold increased by Rs. 300 per tola, reaching Rs. 170,900, up from Rs. 170,400 on Wednesday. Silver also rose by Rs. 35 per tola, trading at Rs. 1,985 compared to Rs. 1,950 the previous day, continuing the recent upward trend.