KATHMANDU: Stay updated 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:

Nepal Government Designates SEBON as Regulator for Investment Companies: The Government of Nepal has designated the Securities Board of Nepal (SEBON) as the regulatory body for investment companies meeting specific financial criteria. As per the Nepal Gazette notification dated Poush 18, 2081, companies with a paid-up capital of Rs. 5 crore or an annual transaction volume of Rs. 10 crore must register with SEBON. Required documents include board details, financial records, and legal clearances to ensure compliance.

Government Urges Social Media Platforms for Mandatory Registration: Nepal’s government has mandated social media platforms to register under the Social Media Management Directive 2080. So far, only WeTalk, Viber, and TikTok have complied, while major platforms like X, Facebook, and Instagram remain unregistered. Communication Minister Prithvi Subba Gurung reiterated the requirement, warning of legal action for non-compliance. The ministry has formally notified platforms and plans further enforcement measures to regulate social media operations within the country.

HoR Approves Renewable Energy and Efficiency Bill: Nepal’s House of Representatives has approved the Renewable Energy and Energy Efficiency Bill, 2081, initially proposed in the National Assembly. Energy Minister Deepak Khadka presented the proposal, which was unanimously passed. The bill aims to promote a green economy, reduce greenhouse gas emissions, and ensure energy security. Lawmakers engaged in discussions, raising concerns and suggestions, while Speaker Devraj Ghimire invited amendments through the parliamentary secretariat’s bill section.

Nepal Rastra Bank Issues Unified Payment System Directive 2081: Nepal Rastra Bank’s Payment Systems Department has introduced the Unified Payment System Directive 2081, consolidating previous directives and circulars. The directive mandates payment system operators to register as public companies by mid-2085. It enforces stricter data center regulations, VPN authentication for mobile banking, and enhanced suspicious transaction reporting. While transaction limits for digital wallets remain unchanged, small merchants without a PAN can now register using official identification. The directive aims to enhance transparency and efficiency.

Buddha Air Investigates Nose Wheel Detachment Incident: Buddha Air and the Civil Aviation Authority of Nepal (CAAN) have yet to determine the cause of a nose wheel detachment incident involving an ATR-72 aircraft (9N-ANH) during a Janakpur-to-Kathmandu flight. The plane landed safely with 62 passengers. The aircraft has been grounded for inspection, and an internal investigation is underway. Maintenance is expected to be completed within a few days, with a full report to be submitted to CAAN and manufacturer ATR.

CAAN-Led Financing Secures Rs 29.62 Billion for 180MW Kaligandaki Gorge Hydropower Project: Laxmi Sunrise Bank, leading a consortium of banks, has secured Rs 29.62 billion in financing for the 180MW Kaligandaki Gorge Hydropower Project. The project, with a total cost of Rs 39.50 billion, will receive 75% funding from banks and 25% from promoters and the public. Set for completion by June 2029, it aims to add 1,056 GWh annually to Nepal’s national grid, strengthening the country’s renewable energy landscape.

Insurance Payouts Lag for Landslide Claims Since September 2024: Despite Nepal Insurance Authority’s directive for swift landslide-related insurance settlements, updates have stalled since January 2025. By then, insurers had received 3,720 claims totaling Rs 12.78 billion but paid only Rs 2.50 billion (19.57%). Rs 9.87 billion remains unsettled. Officials cite minimal new claims but ongoing payouts. An updated report is expected soon. The September 2024 landslides caused significant losses, prompting increased scrutiny of insurance disbursements.

Nepal Micro Insurance IPO Allotment Concludes; Oversubscribed 13.28 Times: The IPO allotment of Nepal Micro Insurance Company Limited was completed today at NIMB Ace Capital, Kathmandu. The company issued 18,45,000 shares worth Rs. 18.45 crore to the public from Falgun 11-15, 2081.

The issue saw 1,806,762 valid applicants requesting 22,274,390 units, oversubscribing it by 13.28 times. Only 1,84,500 applicants secured 10 units each via lottery, while others were left empty-handed. IPO results are available via CDSC IPO Result, MeroShare, and NIMB Ace Capital.

Nepal to Establish Refueling Center at Phaplu Airport for Enhanced Connectivity: The process of establishing a refueling center at Phaplu Airport, Solukhumbu, has begun. A technical team from Nepal Oil Corporation, along with Solududhkunda Municipality officials, conducted an on-site inspection to move the project forward. Once operational, this facility is expected to ease flights between Lukla and Kathmandu.

Mayor Namgel Jangbu Sherpa stated that the initiative was launched after a request to Nepal Oil Corporation. The center will boost tourism by reducing delays caused by adverse weather in Lukla, ensuring more reliable flight operations.

Kathmandu Ring Road Expansion to Begin Soon: Minister Dahal: Minister for Physical Infrastructure and Transport, Devendra Dahal, announced that work on the second section of the Kathmandu Ring Road expansion will start soon with Chinese support. A service lane is under construction, and all preparatory work for the main lane is complete. Dahal highlighted progress in national highway projects, including the Siddhababa Tunnel breakthrough and blacktopping of 246 km of roads. He acknowledged delays in smart license distribution but assured that printing has now accelerated.

Nepal Oil Corporation’s Thankot Depot Faces Safety Concerns After 28 Years of Operation: Nepal Oil Corporation’s (NOC) Thankot depot has been operating in its existing state for 28 years, despite the international standard of reconstructing petroleum storage tanks every 15 years. A recent inspection by the Ministry of Industry, Commerce, and Supplies highlighted significant safety risks, given the depot’s location in a densely populated area.

The report recommended immediate action, including structural renovations, a dedicated safety manual, and improved fire control systems. Authorities stress the urgent need for risk mitigation to prevent potential hazards.

Nepal Insurance Authority Urged to Issue Unified Directives: The Nepal Insurance Authority has issued over 100 directives to regulate the insurance sector, with 62 currently in effect. While new directives replace outdated ones, the lack of a unified document makes accessibility and management challenging for both regulators and insurers. Unlike Nepal Rastra Bank’s consolidated guidelines, insurance directives remain scattered. Industry stakeholders are calling for an integrated directive to streamline compliance, improve governance, and enhance regulatory efficiency in the evolving insurance landscape.

Three Illegal Crusher and Mining Industries Shut Down in Panauti: Authorities in Panauti Municipality, Kavrepalanchok, have shut down three crusher and mining industries operating without proper renewal. Diamond Stone Mining Pvt. Ltd., Bhaleshwar Roda Dhunga Industry Pvt. Ltd., and Deeplaxmi Aggregate & Mining Pvt. Ltd. were closed until further notice. The decision follows repeated warnings and expired excavation permits.

Rs. 18.8 Million Tax Evasion Case Filed Over Illegal Vape Trade: The Revenue Investigation Office, Butwal, has filed a Rs. 18.8 million tax evasion case against four individuals at the High Court, Tulsipur, Butwal. The accused, including Suman Parajuli, proprietor of Kathmandu-based Diamond International, allegedly smuggled vapes to India via Nepalgunj using fake invoices.

Authorities demand asset seizure, fines, and maximum imprisonment under the Revenue Leakage (Investigation and Control) Act, 2052. The case highlights growing concerns over illegal vape trade and tax evasion in Nepal.

Government Committed to Subsidizing Real Farmers: Minister Adhikari: Minister for Agriculture and Livestock Development, Ramnath Adhikari, reaffirmed the government’s commitment to providing subsidies to genuine farmers. Speaking at the Madhyabindu Agricultural Technology and Traditional Food Festival, he emphasized the need for better irrigation and agricultural development. The festival, featuring 125 stalls, showcases modern farming technologies, organic agriculture, and indigenous foods. Expected to attract over 25,000 visitors, it aims to promote local products, support farmers, and enhance agricultural innovation through exhibitions, discussions, and cultural events.

Madhes CM Orders Shutdown of Illegal Hospitals in Garuda: Madhes Chief Minister Satish Kumar Singh has ordered the closure of illegally operating hospitals. During an inspection of 10 hospitals in Garuda, Rautahat, none had proper documentation, prompting the directive.

Hospitals including Anand Hospital & Acupuncture Center, Garuda City Hospital, and Netra Jyoti Eye Hospital were found violating regulations. Some exceeded bed limits without authorization. Similar inspections in Chandranigahapur earlier revealed 10 out of 11 hospitals lacked permits. Authorities plan stricter enforcement to regulate healthcare services.

Steel Industry Faces Declining Revenue Amid Economic Slowdown: Nepal’s steel and iron rod manufacturers have seen declining earnings post-COVID-19 due to reduced construction activity and sluggish economic growth. A credit rating assessment of Jagdamba Steels, Panchakanya Steel, Hama Iron & Steel, and Pashupati Iron & Steel confirms a downward revenue trend. Industrialists cite oversupply, delayed government projects, and weak demand as key factors. Some steel factories have shut down, while others operate below capacity, signaling ongoing industry challenges.

Gold Price Drops by Rs 500 Per Tola, Silver Rises: The price of gold in Nepal decreased by Rs 500 per tola today, with hallmark gold now priced at Rs 170,200 per tola, down from Rs 170,700 on Thursday, according to the Federation of Nepal Gold and Silver Dealers’ Association. In contrast, silver prices rose by Rs 5 per tola, reaching Rs 1,990 per tola, up from Rs 1,785 on Thursday.