KATHMANDU: Stay informed with Nepal News’ Evening Economic Briefing, your essential daily update on Nepal’s economic landscape.

Today is Friday, February 28, 2025—a public holiday in Nepal as the Sherpa community in Nepal celebrates the 2152nd Gyalpo Losar, the Tibetan New Year, with various programs. Gyalpo Losar marks the beginning of the Sherpa New Year. Due to the holiday, many economic institutions remain closed. Here are some selected economic updates for this evening:

Nepal-Japan Trade Relations Expanding: Prime Minister Oli: Prime Minister KP Oli stated that Nepal and Japan’s relations are evolving beyond traditional ties, with increasing trade exchanges between the two nations. Speaking at the Third Nepal-Japan Friendship Summit 2025, he highlighted growing imports and exports, emphasizing the need to further strengthen bilateral cooperation through technology and economic partnerships.

Nepal Electricity Authority Earns NPR 11.36 Billion Profit in First Half of FY 2081/82: The Nepal Electricity Authority (NEA) earned NPR  11.36 billion profit in the first half of FY 2081/82. With revenue of NPR 70.44 billion from electricity sales and other sources, and expenditures of NPR 59.08 billion, NEA achieved consistent profitability. Exporting power to India generated NPR 13.09 billion in revenue.

Government Announces Public Holiday Schedule for 2082: The government has released the public holiday schedule for 2082, confirming 86 days of holidays throughout the year. This includes 52 Saturdays, 26 festival holidays, and 8 days for special occasions. Notable holidays include Nepali New Year (Baisakh 1), Dashain (Ashoj 13-18), and others.

Low Visibility Disrupts Flights at TIA: Flights at Tribhuvan International Airport (TIA) were disrupted due to low visibility caused by bad weather. A Qatar Airways flight from Doha was diverted to Kolkata, while Nepal Airlines from Malaysia and Air China’s flight were also rerouted. A Sichuan Airlines flight was canceled.

Many domestic flights were affected, with cancellations on Kathmandu-Pokhara, Kathmandu-Bharatpur, Kathmandu-Nepalgunj, Kathmandu-Rajbiraj, Kathmandu-Biratnagar, Kathmandu-Janakpur, Kathmandu-Bhadrapur, and Kathmandu-Bhairahawa routes. Most flights faced delays, but operations gradually resumed in the afternoon.

First National Bamboo Conference Kicks Off in Diktel: The First National Bamboo Conference began in Diktel Bazaar on February 27, showcasing bamboo products and promoting income generation. Organized by local and national bodies, the event features 51 stalls, expert presentations, and entertainment. Over 300 guests are attending, with organizers expecting thousands of visitors to explore bamboo’s economic potential.

Small Life Insurance Companies in Nepal Achieve Significant Growth in Business: Small life insurance companies in Nepal have earned NPR 62.52 crore in business by the end of Magh this fiscal year. This marks a significant increase compared to last year’s NPR 4.22 crore. Guardian Micro Life, Crest Micro Life, and Liberty Micro Life contributed to this growth.

Nepal’s Beer Consumption Rises 38%, Government Collects NPR 17.25 Billion in Six Months: Nepal’s beer consumption surged 38.31% in six months, generating NPR 17.25 billion in excise revenue. Liquor tax rose 26.64% to NPR 15.36 billion, while tobacco revenue reached NPR 13.79 billion. Government officials attribute the rise to increased demand and higher tax rates on alcoholic beverages.

Nepal’s Cement Exports Decline Due to Quality Standards Issues in India: Nepal’s cement exports have decreased by 20.37% as of Magh this fiscal year compared to the same period last year. The total cement export is NPR 1.64 billion for 11.53 lakh tons, down from NPR 2.06 billion for 21.47 lakh tons in the previous year. The decline is attributed to India tightening quality control standards for imports.

Insurance Companies Expanding Branches Amid Economic Slump: Despite the economic slowdown, insurance companies are increasing branch offices. Seven newly licensed small insurers have expanded their networks with new offices across specified provinces. The Nepal Insurance Authority reported a 4.67% increase in the number of branches, with life insurance adding 16 and non-life insurance adding 118.

Non-Life Insurance Business Sees 10% Growth: Non-life insurance business has seen nearly a 10% increase. In the past 7 months, companies earned NPR 24.77 billion in premiums, selling 18,21,927 policies, a 6.98% rise. The motor insurance sector contributes the most, with a 31.03% share, while property insurance premiums grew by 13.67%.

Guardian Micro Life Insurance Plans Merger: Guardian Micro Life Insurance is preparing for a merger. The second AGM, scheduled for March 24 at Hotel Airport, Biratnagar, includes proposals to authorize the board for merger or acquisition actions. The agenda also covers director elections, auditor appointments, financial discussions, and book closure on March 9.

Janakpur Customs Office Achieves 43% of Annual Revenue Target: Janakpur Customs Office has collected NPR 24.73 million in revenue so far in the current fiscal year 2081/82. With an annual target of NPR 57.07 million, it has achieved 43% of the goal. The office faces challenges in meeting its target due to smuggling and economic slowdown.

30% of National Budget Must Be Allocated to Health: Minister Paudel: Health Minister Pradip Paudel stressed the need to allocate 30% of Nepal’s budget to healthcare, citing a shortage of hospitals and doctors. He highlighted investment gaps in infrastructure, manpower, and equipment. Paudel announced plans to recruit 500 doctors and urged systemic reforms for sustainable, accessible, and high-quality healthcare services.

Which Bank Has What Base Rate in Nepal?: Interest rates on loans in commercial banks in Nepal have been steadily decreasing, driven by slow demand for credit and an increase in liquidity. As a result, the base rates of several banks have dropped below 6%. For example, the base rate of Standard Chartered has fallen to 5.11%, The base rates of various commercial banks in Nepal for Falgun are as follows: NMB has a base rate of 6.73%, Nabil stands at 6.17%, Kumari offers 7.12%, and Nepal’s rate is 6.12%. Agricultural Development Bank’s base rate is 6.63%, while Prabhu is at 6.87%, Sanima at 6.76%, and Prime Commercial at 7.16%. Laxmi Sunrise has a rate of 7.13%, NIC Asia at 7.53%, and National Commercial Bank is at 5.44%. Machhapuchhre is at 6.90%, Global IME at 6.74%, and Standard Chartered at 5.11%. Nepal SBI has a rate of 6.97%, Everest at 5.63%, Nepal Investment at 6.41%, Citizens at 7.29%, Siddhartha at 6.90%, and Himalayan at 7.06%.

Nepal Investment Mega Bank Appoints New Directors at 38th AGM: Nepal Investment Mega Bank has selected new directors. During its 38th Annual General Meeting on Thursday, the bank appointed six directors. From the founding group, Prithvibhadur Pandey, Dipankar Shakya Uday, Prajanya Raj Bhandari, and Madan Kumar Acharya were elected unopposed. From the general shareholders’ group, Kabikumar Tiwariwala and Shalikram Belbase were elected. Pandey, Rajbhandari, Acharya, and Tiwariwala have previously served as directors of the bank.

Nepal Insurance Authority to Introduce New Guidelines for Electric Vehicle Insurance: The Nepal Insurance Authority is preparing to roll out new guidelines for electric vehicles (EVs). Premium rates will be determined based on a detailed risk analysis of EVs. The guidelines aim to clarify premium structures and claim settlement processes. Insurance companies are demanding higher premiums due to rising EV-related claims.

Time Pharmaceuticals to Issue IPO Through Book Building Method: Time Pharmaceuticals Limited will issue an IPO via the book-building method, appointing Nabil Investment Banking Limited as the issue manager. An agreement was signed by Managing Director Surdshan Lal Shrestha and CEO Manish Narayan Joshi. The 30-year-old company produces over 200 medicines and employs more than 300 people.

Swarojgar Laghubitta Financial Institution to Issue FPO, Offering 195,773 Shares at NPR 1,027 Each: Swarojgar Laghubitta Financial Institution is issuing an additional public offering (FPO) of 195,773 shares, valued at NPR 1,027 per share. The offering will start on February 18 and end by March 3. Investors can apply for a minimum of 10 shares and up to 1,000.

G Ramayan Hotel Opens in Kathmandu with Royal Theme: The G Ramayan Hotel, located in Sohrakhutte, Kathmandu, offers a royal-themed experience. With 40 rooms currently operational, the hotel will expand to 55. Featuring luxury facilities like international-standard jacuzzi, spa, gym, and swimming pool, the hotel aims to provide a unique and exclusive stay for visitors.

Sadhus at Pashupatinath Given Cash Gifts on Maha Shivaratri: On the occasion of Maha Shivaratri, Sadhus (Hindu holy sage) visiting Pashupatinath were sent off with cash gifts ranging from 200 to 9,000 rupees. The Guthi Sansthan and Pashupati Area Development Trust provided the offerings on Friday. Krishna Prasad Regmi, a member of the Guthi Sansthan, explained that the saints were categorized, and gifts were given accordingly. While the Guthi used to fully arrange for food, lodging, and fire for the saints, the trust has been covering half of the costs in recent years.