KATHMANDU: Stay informed with Nepal News’ Evening Economic Briefing. Delivered daily, this concise economic update provides essential insights into Nepal’s economic landscape, including key financial updates, market trends, and major economic events.

The Nepal News’ Evening Economic Brief is your go-to source for navigating Nepal’s economy. Today, February 27, Nepal’s stock market crossed 2,800 points for the first time in six months, along with other positive indicators in various economic sectors. Here are some selected economic updates for this evening:

NEPSE Surges 49.15 Points, Closes at 2,815.04 Amid Strong Investor Optimism: The Nepal Stock Exchange (NEPSE) gained 49.15 points (1.77%) on Thursday, closing at 2,815.04. Total turnover hit Rs. 11.39 billion, with Himalayan Reinsurance leading trading activity. All 13 sub-indices rose, fueled by Nepal Rastra Bank’s mid-term monetary policy review, boosting investor confidence and driving broad-based market gains.

NEPSE Crosses 2800 After Six Months: The NEPSE index surged past 2800 points, marking its highest level in six months. Increased trading volume, recovery in commercial bank stocks, and bullish technical patterns fueled the rally. With investors anticipating strong year-end financial reports, market sentiment remains positive, though economic uncertainties could impact long-term stability.

Finance Ministry Forms Budget Writing Committee for FY 2082/83: The Finance Ministry has formed a Budget Writing Committee for FY 2082/83, led by Budget Division Chief Shreekrishna Nepal. The committee will draft the budget speech, set priorities, and provide policy recommendations. The committee members include Dhaniram Sharma (Chief, Foreign Division), Uttarkumar Khatri (Chief, Revenue Division), Thanaprasad Pangeni (Chief, Administration Division), Tirtha Chiluwal (Deputy Director General, Inland Revenue Department), and Sushila Aryal (Deputy Auditor General).

Commercial Banks Cut Base Rates, Making Loans More Affordable: The base rate of Nepal’s 20 commercial banks dropped to 6.61% in Falgun, down from 6.8% in Magh, lowering loan interest rates. Standard Chartered Bank has the lowest base rate at 5.11%. With Rs. 700 billion in excess liquidity, banks are offering single-digit interest rates to boost lending.

Birgunj Exports Double, Surpass NPR 40 Billion in Seven Months: Exports through Birgunj customs reached NPR 40.34 billion in seven months, more than doubling from NPR 17.08 billion last year. Processed soybean oil led with NPR 19.36 billion, followed by sunflower oil, fruit juice, and iron products. Birgunj contributed 31.72% of Nepal’s total exports, showcasing rising trade potential.

Signs of Recovery in the Construction Industry, Cement Production Increases: The construction materials industry is showing signs of improvement. In the past three months, cement production has reached 50–70% capacity. Increased demand from hydropower, private housing, and local infrastructure projects has driven this growth. After consecutive negative growth, the construction sector is showing signs of a strong rebound, positively impacting the economy.

Nepal Issues Data Center and Cloud Service Directive 2081: The government has introduced the Data Center and Cloud Service Directive 2081 to ensure secure domestic use of data generated by public and private sectors. Issued by Communications Minister Prithvi Subba Gurung, it mandates registration for service providers, enhances cybersecurity, and establishes compliance standards, effective immediately.

Nepal Airlines Faces Operational Crisis as Multiple Aircraft Grounded: Nepal Airlines is facing severe disruptions as five of its seven aircraft remain grounded, affecting 700 passengers daily. Currently, only two wide-body A320s are operational. Additionally, all three Twin Otter aircraft are out of service, causing fully disruptions to domestic flights.

Meanwhile, a narrow-body aircraft is awaiting clearance after maintenance in China, with operations expected to resume by March 1.

CPN-UML Becomes Nepal’s Wealthiest Political Party with Rs. 69.3 Million in Savings: CPN-UML emerged as Nepal’s richest party, reporting Rs. 69.3 million in savings for FY 2080/81. Its income of Rs. 147.9 million, primarily from membership fees, outpaced expenses. In contrast, Nepali Congress, Maoist Centre, RSP, and other parties faced deficits, highlighting UML’s financial dominance amid growing fiscal challenges for rivals.

Nepal Airlines Apologizes for Flight Disruptions, Forms Probe Committee: Nepal Airlines apologized for flight disruptions after grounding three planes due to technical issues. A three-member committee was formed to investigate and recommend action. Stranded passengers will receive hotel accommodations. The airline is working to restore Sagarmatha and Lumibini aircraft and resolve issues with its Twin Otter and Annapurna Widebody planes.

NADA Criticizes NRB’s Monetary Policy, Warns of EV Sector Impact: NADA Automobiles Association has expressed dissatisfaction with Nepal Rastra Bank’s new monetary policy, citing concerns over the 60% loan-to-value (LTV) ratio for personal and electric vehicles. NADA argues this move contradicts Nepal’s green energy commitments and urges NRB to restore the 80% LTV ratio to support EV adoption.

Japan-Nepal Friendship Summit 2025: Japanese Business Delegation Meets Finance Minister Paudel: A delegation from leading Japanese companies met Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel in Nepal for the Japan-Nepal Friendship Summit 2025. Paudel highlighted Nepal’s potential for Japanese investment, particularly in hydropower, tourism, and manufacturing. He assured a favorable investment climate through legal reforms. The summit began in Kathmandu today.

Government Opens Sale of Foreign Employment Savings Bonds: The government has opened the sale of NPR 500 million in Foreign Employment Savings Bonds at an 8.50% interest rate. Available until Chaitra 18, these bonds can be purchased by Nepalis working abroad or recently returned. They can be used as collateral for loans and traded online.

12MW Super Kabeli Hydropower Project Connected to National Grid: The 12MW Super Kabeli Khola Hydropower Project in Sirijanga Rural Municipality, Taplejung, has been connected to Nepal’s national transmission line via the Amarpur substation in Panchthar. Developed by Hilton Hydro Energy Ltd., the project completed construction a month ahead of schedule, with a total cost of Rs. 2.14 billion.

Nepal Micro Insurance IPO Oversubscribed 11.05 Times: Nepal Micro Insurance Limited’s 18,45,000-unit IPO, closing today (15th Falgun), has been oversubscribed 11.05 times, with 15,72,588 applicants applying for 2,04,01,920 units. Managed by NIMB Ace Capital, the company offers micro non-life insurance and holds a ‘CARE-NP BB—(Is)’ rating, indicating moderate default risk.

Minister Paudel Calls for Health Insurance on World Protein Day: On World Protein Day, Health and Population Minister Pradeep Paudel emphasized the need to enroll all Nepali citizens in mandatory health insurance. Speaking at an event organized by the Nepal Feed Industry Association, he stressed preventive healthcare over curative measures and urged legal frameworks for protein security and nutritional policies.

Muglin-Narayangadh Alternative Road Track Opening Begins: The Department of Roads has started opening the Muglin–Gai Ghat–Dasdhunga–Thimura–Gaindakot alternative road track, allocating Rs. 26.93 million. The 38 km route aims to ease traffic congestion and enhance connectivity. Local leaders believe it will boost religious tourism in Devghat and provide a crucial alternative during monsoon-induced landslides.

Nepali Orange Season Ends, Indian Imports Take Over: With the season ending, Nepali oranges are no longer available in the market, leading to an increase in Indian imports. According to fruit traders, Nepali oranges are available from October to mid-February, after which Indian oranges dominate. Currently, Indian oranges cost NPR 120–140 per kg, marking the start of their season.

Banking Unions Seek Clarity After Supreme Court Ruling: Following the Supreme Court’s decision that the Labour Act does not apply to banks and financial institutions, union leaders met Nepal Bankers’ Association President Santosh Koirala to discuss its impact. FIAN officials sought assurance on collective bargaining rights, which Koirala confirmed would continue, said FIAN President Padamraj Regmi.

Krishna Prasad Dulal Appointed FNCCI Executive Member: Krishna Prasad Dulal has been appointed as an executive member of FNCCI by President Chandra Prasad Dhakal under Article 29 (c) 10 of the federation’s statute. A former NADA president, Dulal begins his second FNCCI tenure. He pledged to contribute actively, expressing gratitude to Dhakal and the federation.

Shivam Cement Wins Corporate Excellence Award: Shivam Cements Limited received the Corporate Excellence Award in the manufacturing industry category. Organized by Corporate Club Nepal in Kathmandu, the event honored top companies across various sectors. Shivam, known for producing 43 and 53-grade OPC cement, has played a key role in Nepal’s national and large-scale infrastructure projects.

Reliance Spinning Mills Launches Nepal’s Largest 9.2 MW Solar Plant: Reliance Spinning Mills has commissioned a 9.2 MW solar plant at its Khanar factory in Sunsari to address power shortages. Developed by Prozeal Green Energy Limited, the plant will help meet the industry’s 13–14 MW daily demand. Reliance, Nepal’s largest spinning mill, employs over 4,000 workers.

Olangchung Gola’s Carpets Boost Local Economy with Exports to China: With the reopening of the border, Olangchung Gola in Taplejung has resumed carpet exports to China, revitalizing the local economy. These traditionally woven carpets, priced between Rs 15,000 to 45,000 in China, offer significant financial gains for artisans. The expanding trade has also created local job opportunities.