KATHMANDU: Stay ahead with Nepal News’ Evening Economic Briefing, your daily snapshot of Nepal’s financial landscape. This concise update delivers key insights on market trends, economic indicators, and major financial developments, ensuring you stay informed in an evolving economy. Whether tracking stock movements, foreign exchange reserves, or policy shifts, this briefing distills crucial data into a quick, digestible format. Designed for accuracy and relevance, it’s your essential guide to navigating Nepal’s economic pulse. Here are today’s top updates:

NEPSE Drops 20.68 Points; Turnover Hits Rs. 8.37 Arab: The NEPSE index declined by 20.68 points (0.74%), closing at 2,751.42, following a previous 46.33-point loss. The session saw Rs. 8.37 Arab turnover, with 15.09 million shares traded across 311 companies in 87,156 transactions. Nepal Reinsurance Company (NRIC) led turnover at Rs. 73.50 Crore, closing at Rs. 1,300. NESDO surged 9.98%, while ULBSL dropped 6.98%. Sector-wise, the Others Index gained 0.08%, while the Trading Index declined 1.65%, marking the largest sectoral loss.

Loan Interest Rate Drops to 42-Month Low, Deposit Rates at 8-Year Low: The weighted average interest rate on loans has dropped to 8.55%—the lowest in 42 months—while deposit interest rates have hit an 8-year low. Nepal Rastra Bank reduced the interest rate spread to 4%, further lowering loan rates. Despite this, credit growth has improved, with private sector lending rising by 5.6% in seven months. However, declining interest rates have slowed deposit growth, as more funds flow into alternative investments like the stock market.

Govt Declares 2025-2035 as Internal Employment Promotion Decade: The government has declared 2025-2035 as the Internal Employment Promotion Decade to curb forced foreign employment. Prime Minister Oli announced this at the National Labour and Employment Conference-2081. MoUs were signed with private sector associations to create jobs and provide training. The government also partnered with Switzerland to expand market information systems. Officials emphasized policy reforms, private sector-led growth, and secure, dignified employment opportunities for Nepali workers.

PM Oli Urges Private Schools to Invest Confidently: Prime Minister KP Sharma Oli has urged private schools to invest confidently, assuring that the Constitution guarantees property rights. Inaugurating PABSON’s 16th National General Convention, he dismissed proposals to incorporate private schools into a Guthi model. Oli emphasized the government’s commitment to free education for needy children while seeking private sector cooperation. He reiterated that profit-making within legal frameworks remains permissible.

NEPSE Index Surges as Market Capitalization Hits Rs.4458.52 Billion: As of mid-February 2025, the NEPSE index rose to 2685.73 from 2101.16 a year ago. According to Nepal Rastra Bank’s Current Macroeconomic and Financial Situation of Nepal report, based on seven months of data ending mid-February 2024/25 Stock market capitalization reached Rs.4458.52 billion, up from Rs.3302.84 billion in mid-February 2024. Listed companies dropped slightly to 268 from 271. BFIs and insurance firms held 53.3% of market capitalization, followed by hydropower (16.7%) and investment companies (7.6%). The paid-up value of listed shares was Rs.854.91 billion. Securities worth Rs.16.66 billion were listed, while Securities Board of Nepal approved Rs.21.67 billion in public issuances, including mutual funds, right shares, and debentures.

Nepal’s Foreign Exchange Reserves Reach Record High: As of mid-February 2025, Nepal’s foreign exchange reserves surged 16.1% to Rs.2369.08 billion from Rs.2041.10 billion in mid-July 2024. In USD terms, reserves increased 11.7% to $17.05 billion. According to Nepal Rastra Bank’s Current Macroeconomic and Financial Situation of Nepal report, NRB-held reserves rose 13.9%, while reserves in banks and financial institutions grew 37.1%. The Indian currency share stood at 22%. Reserves can cover 17.2 months of imports. The Nepalese rupee depreciated 3.80%, with the exchange rate at Rs.138.63 per USD. Meanwhile, oil prices dropped 10.13%, while gold prices soared 43.48% to $2891.50 per ounce.

Current Account and Balance of Payments Surplus in Review Period: Nepal’s current account recorded a surplus of Rs.166.80 billion in the review period, slightly higher than Rs.162.52 billion in the same period last year. In USD terms, it stood at $1.24 billion, up from $1.22 billion. Net capital transfer rose to Rs.5.83 billion, while foreign direct investment (FDI) inflow (equity only) increased to Rs.7.45 billion, compared to Rs.5.19 billion last year. The balance of payments (BOP) surplus stood at Rs.284.41 billion (USD $2.11 billion), slightly lower than last year’s Rs.297.72 billion (USD $2.24 billion).

Inflation Drops to 4.16% in February 2025: Year-on-year (y-o-y) consumer price inflation (CPI) stood at 4.16% in mid-February 2025, down from 5.01% a year ago. Food and beverage inflation was 4.95%, while non-food and service inflation stood at 3.74%. Prices of ghee & oil rose 12.8%, while spices fell 2.98%. Inflation was highest in Koshi Province (6.15%) and lowest in Bagmati (3.35%). Rural inflation (4.73%) exceeded urban inflation (3.96%). Wholesale price inflation (WPI) rose to 3.47%, with consumption goods up 4.27% and construction material down 0.72%. Inflation in Kathmandu Valley, Terai, Hill, and Mountain regions varied between 3.53% and 5.21%.

7-Point Agreement Reached on Upper Tamor Hydropower Project: An all-party meeting has finalized a 7-point agreement on the 285 MW Upper Tamor Hydropower Project, Nepal’s largest private-sector-led hydro project. Coordinated by Phaktanglung Rural Municipality, the meeting included local stakeholders and political representatives. Key agreements include forming a Project Concern Committee on April 2 and assigning the hydropower company responsibility for protecting drinking water sources in affected areas.

Crest Micro Life Insurance IPO Closes Today; Oversubscribed 10.43 Times: Crest Micro Life Insurance Limited is closing its 18,45,000-unit IPO at Rs. 100 per share today, Falgun 26, 2081. The issue, which opened on Falgun 22, had already reserved shares for Nepalese workers abroad (2,25,000 units), employees (67,500 units), and mutual funds (1,12,500 units). With 15,90,594 applicants applying for 1.92 crore units (Rs. 1.92 Arba), the IPO has been oversubscribed 10.43 times. NIMB Ace Capital Limited is the issue manager. ICRA Nepal assigned Crest a BB rating, indicating moderate default risk. The company, licensed in April 2023, has a paid-up capital of Rs. 525 million and key investors, including Himalayan Reinsurance (21.43%).

9.84 MW Daraudi Hydropower Project to be Built in Gorkha: A 9.84 MW hydropower project will be built on the Daraudi River in Gorkha by Mankamana Daraudi Hydropower Company with a NPR 2.28 billion investment. The project, using a Peaking Run-of-River model, will be completed by January 2027. Funded 70% by bank loans and 30% equity (75% promoters, 15% IPO, 10% locals), it is led by retired NEA employees to utilize their expertise in Nepal’s energy sector.

BB Airways Gets Last-Minute Approval for Proofing Flight: Nepal Civil Aviation Authority (CAAN) has granted BB Airways permission for a proofing (demonstration) flight just a day before its aircraft acquisition deadline. BB Airways, which had received approval on March 12, 2024, to acquire three aircraft, secured the permission by leasing a Druk Air aircraft at the last moment. The airline has faced scrutiny over its financial and operational credibility, with concerns about political influence in the licensing process.

Flora Expo 2025 to Be Held in Kathmandu: The 26th Flora Expo will take place at Bhrikutimandap, Kathmandu, from March 14 to 17 with 82 stalls. Organized by Floriculture Association Nepal, the event promotes flower businesses under the theme “Floriculture for a Clean Environment and Economic Prosperity.” Competitions for the best stall and seasonal flowers will be held, with winners receiving cash prizes.

Agreement to Promote Employment in the Automobile Sector: The Ministry of Labour, Employment, and Social Security and NADA Automobiles Association of Nepal have signed a memorandum of understanding (MoU) to promote employment in the automobile sector. The agreement aims to provide training and create job opportunities. The conference has commenced under the theme “Promoting Domestic Employment for Productivity Enhancement.”

Orange Sales Drop in Gorkha Due to Lower Production: Gorkha district sold oranges worth Rs 100 million this year, a decline from Rs 135 million last year due to diseases, lack of compost manure, drought, and irrigation issues. Despite lower yields, farmers received good prices, selling directly in major markets. The government is supporting farmers with subsidies and orchard management programs to boost production.

Gold Price Rises by Rs 100 Per Tola: The price of gold in Nepal increased by Rs 100 per tola today, reaching Rs 170,400, according to the Federation of Nepal Gold and Silver Dealers’ Association. Meanwhile, silver prices remained stable at Rs 1,985 per tola.