KATHMANDU: Stay informed with Nepal News’ Evening Economic Briefing—your essential daily update on Nepal’s economic landscape. Here are the key economic updates for this evening:

Finance Ministry Advances Budget Process for FY 2082/83:
The Ministry of Finance has set a Rs 1900 billion budget ceiling and initiated estimates for FY 2082/83. Ministries must submit policy details by mid-April. Key discussions will involve political leaders, economists, and experts. The budget will be presented in parliament on Jestha 15, with committees overseeing drafting and revenue planning.

NEA Expands Power Infrastructure in Kathmandu Valley with Six New Substations:
The Nepal Electricity Authority (NEA) is constructing six 132/11 kV substations in Kathmandu and Bhaktapur to enhance power reliability. The Teku substation is operational, while Futung and Mulpani will start within two months. The Chobhar substation will launch by Ashar, and Thimi within eight months. These substations, with a combined capacity of 500 MW, align with NEA’s long-term plan to meet a projected 3,100 MW demand by 2050. Funded by the government, ADB, JICA, and the World Bank, the upgrades include underground cabling, automation, and a 220 kV transmission ring for future power security.

Stock Market Sees Continuous Growth:
Nepal’s stock market maintained its upward momentum for the second consecutive week, with NEPSE closing at 2,815.04 points, up 71.3 points. Trading remained active for four days, with transactions totaling NPR 43.93 billion, surpassing last week’s NPR 38.58 billion. Market capitalization grew by NPR 120 billion, reaching NPR 4.67 trillion. NEPSE formed a new higher high, signaling strong market sentiment. Key bullish factors include increasing daily turnover (averaging nearly NPR 11 billion), price action trends forming higher highs and lows, and abundant liquidity. Until bank interest rates hit double digits, the market is expected to remain bullish. NEPSE surpassed the 2800 mark, forming a new higher high, supported by strong liquidity, low interest rates, and consistent daily transactions above Rs 10 billion.

NRB Decision to Add Over NPR 100 Billion in Non-Performing Loans:
A recent decision by Nepal Rastra Bank (NRB) is set to increase non-performing loans (NPLs) in the banking system by over NPR 100 billion. NRB had previously granted relief to construction businesses, allowing deferred loan repayments until Mangsir 2081, but this policy is now being withdrawn. Banks have provided NPR 207.99 billion in loans to the construction sector, with a significant portion tied to government infrastructure projects. As the government has yet to clear NPR 40 billion in dues, construction businesses warn of protests and demand an extension of financial relief until payments are settled.

Life Insurance Business Grows by 28.05%; Nepal Life Leads with Rs 4.59 Billion Premium:
The life insurance sector in Nepal has recorded a 28.05% growth in new business, according to the Nepal Insurance Authority. In the first seven months of the current fiscal year, 14 life insurance companies collected NPR 18.43 billion in first-year premiums, compared to NPR 14.39 billion in the same period last year.
Nepal Life secured the highest premium collection at NPR 4.59 billion, marking a 39.04% increase from the previous year. National Life followed with NPR 2.73 billion (24.09% growth), while LIC Nepal ranked third, collecting NPR 1.54 billion (28.92% growth).

Civil Aviation Authority Backtracks on Airbus Helicopter Ban Decision:
Nepal’s Civil Aviation Authority (CAAN) has withdrawn its decision to ban the import of Airbus helicopters, following industry backlash. Airlines strongly opposed the move, arguing it was impractical. While CAAN initially defended its stance, it later clarified that no formal decision had been made. The controversy comes amid Nepal’s ongoing struggle to lift the EU’s 12-year aviation ban.

Foreign Employment Insurance Generates Nearly NPR 2 Billion in Premiums:
Life insurance companies in Nepal have collected nearly Rs 2 billion in premiums through foreign employment insurance policies. According to the Nepal Insurance Authority, life insurers accumulated NPR 1.97 billion in premiums in the first seven months of the current fiscal year, marking a 15.09% increase from the previous year’s NPR 1.71 billion.

Solar Projects Now Require Local Government Approval:
The Department of Electricity Development has amended regulations, making local government approval mandatory for solar projects. Previously, such approval was not required. The revision aims to resolve jurisdictional disputes, particularly regarding land classification. Projects over 1 MW must now obtain local government recommendations. This change eliminates the need for prior approval from the Irrigation Department, ensuring both farmland protection and solar energy development.

Base Rate to Be Implemented in Microfinance Institutions from May
Nepal Rastra Bank (NRB) has announced that the base rate system will be applied to microfinance institutions starting from May. This decision was made during the mid-term review of the current fiscal year’s monetary policy. NRB had previously outlined plans to introduce base rates in microfinance institutions, and they have since been calculating and reporting them quarterly. With this implementation, microfinance lending rates will now be linked to the base rate, ensuring a more structured and transparent interest rate system in the sector.

Himalaya Airlines to Launch Regular Pokhara-Lhasa Flights:
Himalaya Airlines is set to begin regular flights from Pokhara International Airport to Lhasa, Tibet. According to the Civil Aviation Authority of Nepal, flights will commence on March 31. Ticket bookings have already opened following slot approval from Lhasa Gonggar Airport.

Kailash Rural Municipality Launches 1,200-Meter Zipline Project:
Makwanpur’s Kailash Rural Municipality has built a 1,200-meter zipline at a cost of NPR 8.8 million, connecting the Kailash and Vaikunth areas. The first-phase testing was successfully completed in Ward 2 of Vaikunth, expected to benefit citizens in Dhading, Rorang Benighat, Thahanagar, Raksirang, and Manahari. Officials anticipate regular operations soon.

Strawberry Farming Brings Annual Income of 3 Million:
Mukti Bista from Kavre’s Banepa-10 is thriving in strawberry farming, earning NPR 3 million annually. Starting during the COVID-19 pandemic, he expanded his business without hesitation. With 10 ropanis of land, he supplies strawberries to major markets. Despite challenges in securing subsidized loans, his business provides jobs for five people. His strawberries reach Kathmandu, Pokhara, and Chitwan markets.

Compensation Delayed for Birgunj Dry Port Landowners:
Federal Affairs Minister Rajkumar Gupta has raised concerns over the long-pending compensation for land acquired for the expansion of Birgunj Dry Port. During his visit to the affected area, locals welcomed him and urged immediate action. Compensation struggle committee leader Bijay Kumar Tiwari highlighted years of delays. Land Minister Balram Adhikari assured that the compensation process is in progress and will be distributed soon.

Smart Telecom Victims Protest as Govt Fails to Act for 22 Months:
Despite the government canceling Smart Telecom’s license 22 months ago, no concrete action has been taken, leaving 1,700 tower landlords, users, and employees in crisis. Unpaid rent, electricity bills, and financial liabilities remain unresolved. Victims staged a protest outside the Nepal Telecommunications Authority, demanding urgent action. The authority has promised a decision within a week, but protests will continue until their demands are met.