KATHMANDU: Nepal News brings you a daily economic summary, providing the latest updates on Nepal’s financial landscape. Stay informed with Nepal News’ Evening Economic Briefing, a concise roundup of the day’s key economic developments.Here are today’s important economic highlights:

Nepal’s Stock Market Slips After Nine-Day Rally as Traders Take Profits: The NEPSE index declined 13.62 points to 2,876.66 on Monday, snapping a nine-session winning streak that had added 211.78 points. The index hit an intraday high of 2,929.21 before retreating as investors locked in gains.

Turnover rose to Rs 14.28 billion, led by Himalayan Reinsurance with Rs 1.38 billion in trades. Guardian Micro Life Insurance hit the upper circuit, while Samaj Laghubitta fell 10%. Sector indices were mixed, with Hotels & Tourism dropping 1.88%. Analysts see the pullback as a healthy correction after the recent surge, with strong liquidity supporting market stability.

Finance Ministry Issues Budget Guidelines for FY 2082/83: The Ministry of Finance has issued budget formulation guidelines for the fiscal year 2082/83, emphasizing feasibility and proper financial planning. The guidelines mandate that budget proposals must stay within limits, new projects should be implementable, and foreign aid-based projects must align with execution schedules. It also requires multi-year liabilities to be managed systematically and prioritizes national pride projects. The budget formulation will also incorporate intergovernmental financial transfers.

Nepal Prioritizes Transmission Line Expansion for ADB Loans: The Nepal government has prioritized transmission line expansion for loan investments from the Asian Development Bank (ADB). The Ministry of Energy revised its project list and sent it to the Ministry of Finance, proposing eight projects for ADB investment. The focus is on strengthening transmission and distribution systems. Nepal aims to expand its 6,000-circuit km transmission network to meet future electricity demands. Meanwhile, discussions on MCC funding continue as the U.S. has paused support for 90 days.

Nepal Rastra Bank Tightens Loan Policy on Electric Vehicles: Nepal Rastra Bank has tightened loan provisions for all types of electric vehicles. In a circular issued on Monday, following the mid-term review of the monetary policy, the central bank set a loan-to-value (LTV) ratio of 60%, requiring buyers to make a 40% down payment. Previously, banks could finance up to 80% of an EV’s value, meaning buyers only needed a 20% down payment. The new policy benefits ICE vehicle sellers, who had long demanded restrictions on EV financing.

Himalayan Re Hits All-Time High as Nepal’s Reinsurance Sector Gains Momentum: Nepal’s reinsurance market has been witnessing significant activity, with Himalayan Reinsurance reaching an all-time high in the secondary market. The country currently has two reinsurance companies, Himalayan Reinsurance and Nepal Reinsurance, both listed under the “Others” category in NEPSE.

According to the second quarterly report of the fiscal year, Himalayan Re has a paid-up capital of Rs. 10.40 billion and a reserve fund of Rs. 6.16 billion. The company reported a net profit of Rs. 616.9 million, with earnings per share (EPS) at Rs. 11.86 and a book value of Rs. 160.69. Its return on equity (ROE) stands at 7.38%, reflecting strong financial performance.

On the other hand, Nepal Reinsurance, as per its third quarterly report from the previous fiscal year, has a paid-up capital of Rs. 12.81 billion and a reserve fund of Rs. 5.80 billion, with a total capital base of Rs. 18.89 billion. The company posted a net profit of Rs. 737 million, with an EPS of Rs. 5.75 and a book value of Rs. 147.45. However, its ROE is lower at 3.9%.

A comparative analysis suggests that Himalayan Re appears stronger in terms of reserves and profitability, while Nepal Re holds a higher total capital base. Both companies must increase their capital to Rs. 20 billion as per regulatory requirements. In terms of dividends, Himalayan Re distributed 4.21% last fiscal year, while Nepal Re offered 5%.

With rising investor interest and strong financial performance, Nepal’s reinsurance sector is gaining momentum, making these companies key players in the country’s financial market.

Calls Grow for Fair Distribution of Telecom Royalties: Stakeholders have urged fair allocation of telecom frequency royalties to provincial and local governments, arguing that frequencies are a natural resource. Despite a 2022 recommendation from the National Natural Resources and Fiscal Commission, the Finance Ministry has yet to act. Experts emphasize policy mandates for equitable distribution, proposing a model based on geography, population, and mobile users to ensure fair benefits for affected communities.

Chhimek Laghubitta Opens Sale of 100,000 Promoter Shares: Chhimek Laghubitta has opened the sale of 100,000 promoter shares. The minimum price per share is set at NPR 445. Existing promoter shareholders can apply for purchase within 35 days, starting Monday (Falgun 19). Applications must be submitted at the company’s central office in Mid-Baneshwar, Kathmandu. If no applications are received within the given period, the shares will be made available to other individuals or institutions.

Government to Cover Medical Costs for Severe Road Accident Injuries: The government will fund the treatment of critically injured road accident victims through the Road Safety Fund, as proposed in the National Road Safety Policy 2081. The policy mandates health insurance coverage and increased compensation. While current insurance covers NPR 5 lakh for fatalities and NPR 3 lakh for injuries, a task force has recommended raising medical coverage to NPR 25 lakh.

Kulman Ghising Receives Zero Performance Score from Energy Ministry: Nepal Electricity Authority’s Managing Director Kulman Ghising has received a zero performance score for the fiscal year 2080/81 from the Ministry of Energy, Water Resources, and Irrigation. The evaluation committee, led by Joint Secretary Jivach Mandal, assigned the score, citing failure to submit performance details on time. Ghising had claimed 98.99% achievement in his submitted report, but the ministry proceeded with the zero-score decision under Secretary Suresh Acharya’s directive.

Former Chairpersons Urge Insurance Board Chief to Act Fearlessly: Former chairpersons have advised Nepal Insurance Authority Chairman Sharad Ojha to understand his regulatory role and act decisively. In a discussion, Madhav Prasad Upadhyaya, Devendra Pratap Shah, and Prof. Dr. Fatta Bahadur K.C. emphasized preventing political interference, rejecting unnecessary demands, and making bold decisions for institutional integrity. They highlighted that the Insurance Act strengthens leadership and urged Ojha to uphold the authority’s reputation with fearless and honest actions.

Insurance Complaints Surge Over Delayed Claim Payments: Complaints against insurance companies for delayed claim payments are rising, with 141 cases filed as of mid-January this fiscal year. In FY 2080/81, complaints hit 244, continuing a six-year upward trend. 371 cases remain unresolved. Officials blame agent miscommunication, lack of transparency, and insurer reluctance. Without stricter enforcement, policyholders are forced to seek justice through the Insurance Authority.

15 Years On, Kali Gandaki Corridor Still Incomplete: The 495 km Kali Gandaki Corridor, Nepal’s shortest north-south national pride project, remains only 65% complete despite starting in FY 2066/67. Delays stem from budget constraints, earthquakes, COVID-19, and contractor inefficiencies. The estimated cost is Rs 30.57 billion, with Rs 20 billion spent so far. Local frustrations grow as irrigation, water supply, and roads suffer, urging authorities to expedite construction.

Nepal-India Sign MoU on Water, Sanitation, and Hygiene Cooperation: Nepal’s Minister for Water Supply, Pradip Yadav, and India’s Minister of Jal Shakti, C.R. Patil, signed a Memorandum of Understanding (MoU) today in New Delhi to enhance cooperation in water, sanitation, and hygiene (WASH). The agreement aims to strengthen Nepal’s access to clean water, sanitation, and waste management while promoting technological collaboration and capacity-building. Key officials from both nations attended the signing ceremony, underscoring their commitment to sustainable water security and bilateral cooperation.

Govt Allocates Rs 10 Million for Tarigaun Airport Expansion: The Ministry of Culture, Tourism, and Civil Aviation has allocated Rs 10 million for Tarigaun Airport in Tulsipur, Dang, with a request for Rs 990 million more. The airport, 750 meters long, needs 1,500 meters to accommodate 72-seater aircraft. Currently, only 19-seaters can land. PM KP Sharma Oli recently visited the site.

Biratnagar Airport’s New Terminal Construction in Full Swing: The new terminal building at Biratnagar Airport is progressing swiftly, with 47% physical and 37% financial completion, as per CAAN engineer Sanjeev Khadka. The Rs 3.12 billion project, initiated in 2079, is set for completion by 2082 Mangshir. Designed to accommodate 550 passengers per hour, the terminal will feature 17 check-in counters, VIP lounges, and commercial spaces, preparing the airport for potential international flights and boosting regional connectivity.

Gold and Silver Prices Remain Stable for Three Days: The price of gold in Nepal has remained unchanged for three consecutive days, according to the Nepal Gold and Silver Dealers’ Association. Since Friday, gold has been traded at Rs 168,100 per tola, after a drop from Rs 170,300 per tola on Thursday. Similarly, silver prices have also remained stable at Rs 1,915 per tola during this period.

Swastima Khadka Appointed as Nepal Telecom’s Brand Ambassador: Nepal Telecom has appointed actress Swastima Khadka as its brand ambassador. In a ceremony today, Managing Director Sangita Pahadi (Aryal) and Khadka signed the agreement. Khadka expressed her excitement, committing to promoting the company’s services. The one-year contract includes marketing and brand promotion, with the possibility of extension by mutual agreement.