KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top highlights:

Nepal’s Economy to Grow by 4.5% in FY25, Says World Bank: The World Bank projects Nepal’s economy to grow by 4.5% in FY25, up from 3.9% in FY24, despite challenges from natural disasters in late 2024. The growth will be fueled by domestic trade, hydropower generation, and increased paddy production, according to the latest Nepal Development Update.

The report also forecasts an average growth rate of 5.4% in FY26 and FY27, driven by the expansion of Nepal’s services sector. However, it warns of downside risks, including geopolitical uncertainty, financial sector instability, bureaucratic inefficiencies, and capital expenditure delays.

David Sislen, World Bank’s Country Director for Nepal, emphasized the need for private sector-led growth and structural reforms to generate jobs. National Planning Commission Vice Chairman, Dr. Shiva Raj Adhikari, stressed the importance of efficient budget execution and timely project completion to meet Nepal’s 16th Plan targets.

The Nepal Development Update, published biannually, provides an in-depth analysis of economic trends and long-term outlooks.

NEPSE Rises Slightly, Trading Volume Surges on Thursday: On the last trading day of the week, Thursday, the NEPSE index saw a slight increase of 3.35 points, closing at 2,703.39 points. Trading volume also surged, with the total turnover reaching NPR 7.23 billion, compared to NPR 5.44 billion on Wednesday. This marks an increase of NPR 1.79 billion from the previous day. A total of 155.2 million shares of 324 securities were traded.

Among the listed companies, 93 saw their share prices increase, while 151 experienced a decline. Green Ventures recorded the highest gain, with its stock rising by 9.99% to NPR 505.20 per share. Similarly, Super Madi Hydropower’s stock climbed by 6.09%, reaching NPR 955.80 per share. On the losing side, Upakar Laghubitta’s stock fell by 9.10%, closing at NPR 3,256.10 per share, while Guardian Micro Insurance dropped 6.86%, settling at NPR 2,405 per share.

In terms of trading volume, Himalayan Reinsurance recorded the highest turnover on Thursday, making it the most actively traded stock of the day.

Insurance Claims from Royalist Protest Riots in Kathmandu Exceed Rs. 48.7 Million: The recent royalist protests in Kathmandu led to significant property damage, resulting in insurance claims exceeding Rs. 48.7 million. According to the Nepal Insurance Authority, as of April 2, 43 claims have been filed with 11 insurance companies.

Rastriya Beema Company received the highest claims, totaling Rs. 127 million for two cases. Siddhartha Premier Insurance follows with Rs. 117.5 million from eight claims. Other companies with significant claims include Sagarmatha Lumbini Insurance (Rs. 68.91 million), Neco Insurance (Rs. 52 million), and Oriental Insurance (Rs. 47.5 million).

So far, only Shikhar Insurance has settled three claims, paying Rs. 45,012. Other companies have yet to process payments. The Insurance Authority had instructed firms to expedite claim settlements on March 30. Despite this directive, the majority of claims remain unpaid, raising concerns about compensation delays for affected businesses and individuals.

PM Oli Calls for Global Collaboration on Climate and Prosperity at AIT, Thailand: Prime Minister KP Sharma Oli, currently on a five-day official visit to Thailand, addressed an event at the Asian Institute of Technology (AIT) on April 3. He emphasized Nepal’s commitment to prosperity, security, and human dignity, reiterating the national vision of “Prosperous Nepal, Happy Nepali.” He also called for global cooperation on climate change. AIT has strong ties with Nepal, with 181 Nepali students currently enrolled and 1,795 alumni. Nepal’s Ambassador Dhan Bahadur Oli highlighted that Nepalis form the fourth-largest group among international students at AIT.

Nepal Rastra Bank Report Highlights Banks’ Lapses in Loan Monitoring and Risk Management: The Nepal Rastra Bank’s supervision report (FY 2023/24) reveals that banks failed to monitor loan usage, with some approving loans without proper documentation. Violating regulations, banks categorized misused loans as pass loans and issued over Rs 50 lakh in personal loans without clear purposes. Some banks also ignored audit requirements, appointing only one auditor instead of three. The report highlights cash management weaknesses, rising financial fraud, and digital banking risks, stressing Nepal’s “grey list” challenges in enforcing anti-money laundering measures.

Thick Fog Disrupts Flights at Tribhuvan International Airport: Flights at Tribhuvan International Airport have been affected since early Thursday morning due to low visibility caused by thick fog.

According to the Tribhuvan Airport Office, flights are currently operating under the IFR (Instrument Flight Rules) system, which results in slower aircraft management compared to normal conditions.

Most scheduled flights this morning were impacted. Even now, some planes are seen circling in the sky before being allowed to land.

Five mountain flights that took off from Kathmandu this morning had to be diverted to other airports due to low visibility.

According to the airport, out of the three Buddha Air mountainflights, two were diverted to Bhairahawa and one to Janakpur. Similarly, one mountain flight each from Yeti Airlines and Shree Airlines was diverted to Bhairahawa.

Supreme Court Denies Interim Order for Kulman Ghising’s Reinstatement: The Supreme Court has refused to issue an interim order for the reinstatement of former Nepal Electricity Authority (NEA) Managing Director Kulman Ghising. After a three-day hearing, the bench of Justices Kumar Chudal and Nityananda Pandey ruled on Thursday, prioritizing the case but declining an immediate order. Ghising had filed a writ challenging his dismissal, naming the government, Energy Ministry, and newly appointed MD Hitendra Dev Shakya as respondents. Meanwhile, Shakya also filed a petition to settle his previous removal case. The court scheduled further hearings after delaying a joint review of both cases earlier in the week.

Trump Announces Reciprocal Tariffs, Nepal Faces 10 PC Tarrif: U.S. President Donald Trump has announced reciprocal tariffs, a move that has significantly impacted global trade. The concept of reciprocal tariffs means imposing the same tariff rate on a particular product as the country of origin applies to U.S. goods.

Previously, U.S. tariff rates were relatively low, but with the introduction of reciprocal tariffs, they have been increased.

For example, Nepal imposes a 30% import duty on wool or high-quality animal hair-based fabrics and carpets imported from the U.S. However, Nepalese exports to the U.S. were previously exempt from tariffs.

Under the new reciprocal tariff policy, the U.S. has set a minimum tariff of 10% on such goods instead of the full 30%. This means that Nepalese products entering the U.S. market will now face a 10% tariff.

Since setting different tariffs for different countries and products is complex, a minimum rate has been introduced. These tariffs vary depending on the country and the type of product. Most imported goods are now subject to a basic 10% tariff.

Nepal Reinsurance Company’s Profit Drops by 27.41% in FY 2080/81: Nepal Reinsurance Company (Nepal Re) has published its financial report for the fourth quarter of FY 2080/81, showing a net profit of Rs. 1.13 billion. This marks a 27.41% decline from Rs. 1.55 billion in the previous fiscal year.

As of the fourth quarter, Nepal Re’s special reserve stands at Rs. 4.40 billion, catastrophe fund at Rs. 324 million, retained earnings at Rs. 529.9 million, and other equity at Rs. 782.2 million. Compared to last year, retained earnings have decreased, while other reserves have grown.

Total insurance premium earnings fell by 4.91% to Rs. 10.58 billion, while net premiums declined by 3.91% to Rs. 9.49 billion. The company’s EPS dropped from Rs. 12.17 to Rs. 8.43, with a net worth per share of Rs. 145 and a P/E ratio of 92.04. The report highlights a challenging year for Nepal Re, with declining profitability and reduced premium earnings.

Revenue Sharing for Provinces and Local Levels Set at Rs 150 billion: The federal government has approved a detailed framework for revenue sharing from fiscal year 2082/83 to 2086/87, setting the estimated distribution for the upcoming year at NPR 150 billion. For the next fiscal year, the government plans to allocate Rs 78.08 billion each to provincial and local governments. In the current fiscal year 2081/82, Rs 159 billion was allocated, while in 2080/81, the amount was Rs 142.96 billion.

However, due to lower-than-expected revenue collection, the allocated amount could not be fully distributed. The shared revenue primarily comes from VAT and excise duties, which the federal government collects and then distributes. As per the system, 70% of the total collected revenue remains with the federal government, while the remaining 30% is equally divided between provinces and local governments at 15% each. Meanwhile, vehicle tax collection remains under the jurisdiction of provincial governments.

Wean Nepal Laghubitta Issues Further Public Offering (FPO): Wean Nepal Laghubitta has issued a Further Public Offering (FPO). The company has put 51,292 shares up for sale at a face value of NPR 100 per share, starting from Thursday. The company’s authorized capital stands at NPR 84.3 million, while its paid-up capital is NPR 79.2 million. Investors can apply for the FPO until Chaitra 26, and if the required applications are not met, the deadline will be extended until Baisakh 4. In terms of investment risk, CARE Ratings Nepal has assigned the company a “Single B” rating, indicating a higher financial risk in meeting its obligations.

Government Directs Cement and Iron Rod Manufacturers to Display Factory Gate Price: The government has instructed manufacturers in Nepal to clearly state the factory gate price on the packaging of cement and iron rods. The Department of Commerce, Supply, and Consumer Protection has issued a directive requiring producers to display the factory gate price on the cement packets and the bundles of iron rods.

In addition, dealers and sellers of cement and iron rods are also mandated to display the maximum retail price list along with the brand name in a language that is easily understandable to consumers, before selling or distributing these goods.

This move comes in response to complaints from the public, as manufacturers have been increasing the prices of cement and iron rods arbitrarily, leading to a significant burden on consumers. Following these price hikes, there has been widespread protest against the manufacturers.

India Renews BIS Certification for Nepali Cement and Plywood: India has renewed the Bureau of Indian Standards (BIS) certification for Nepali cement and plywood, reopening the export route that had been blocked for months.

Due to India’s delay in renewing the BIS certification, Nepal had been unable to export cement to India for the past five months and plywood for the past month. With the renewal, the export of corrugated sheets (zinc sheets) has also resumed.

The certification for Arghakhanchi Cement, based in Rupandehi, has also been updated. Following the renewal, the export of cement, zinc sheets, and plywood to India is expected to resume smoothly. Currently, two to three cement industries with one month of certification validity remaining are continuing exports, while about half a dozen cement industries are expected to receive BIS certification within a month, according to industry sources.

To facilitate exports, Nepal’s Minister of Industry, Commerce, and Supplies, Damodar Bhandari, had undertaken diplomatic efforts. During his official visit to India, Minister Bhandari met with his Indian counterpart, Piyush Goyal, and advocated for smoother exports of Nepali goods to the Indian market. Additionally, the Nepal-India Commerce Secretary-level meeting held on January 11-12 also discussed BIS certification acquisition, renewal, and export facilitation. After Nepal raised these issues as a priority, the Indian side committed to resolving them.

Government Report: Over 29% of Nepal’s Population Engaged in Internal Migration: A recent government study has revealed that over 29.2% of Nepal’s population has migrated within the country, leaving their birthplace for another location. According to the National Statistics Office’s Internal Migration Report, the highest migration rate of 32% is recorded in the hill regions, followed by 28.9% from the Terai and 13.8% from the Himalayan region.

The report highlights that women account for the majority of internal migrants at 37.6%, while the migration rate for men stands at 20.6%. The population migrating into the Terai region has significantly increased, from 410,064 in 2028 B.S. to 2,084,505 in 2078 B.S.

Similarly, the number of people moving to the Himalayan region increased from 9,698 (2.25%) in 2028 B.S. to 75,542 in 2078 B.S. However, due to a higher out-migration rate from the region, the net migration remains negative by 543,966 people, indicating more people are leaving the Himalayas than moving in.

Listed Health Institutions to Establish New Standard Labs and Digitalization for Migrant Workers’ Medical Tests: Health institutions authorized to conduct medical tests for migrant workers have decided to establish new standard laboratories and transition to a digitalized system within the stipulated time frame.

The Ministry of Labour, Employment, and Social Security had issued a notice on March 28, announcing new standards and the implementation of digitalization to completely eliminate the practice of issuing fake medical certificates. A joint meeting of the Nepal Health Professionals Federation, Nepal Medical Business Association, and GAMCA Nepal has committed to installing the necessary additional medical equipment within the given time frame, as set by the ministry. The ministry stated that only those health institutions that pass inspections will be integrated into the digitalization system.

According to the sixth amendment (2024) of the “Regulations on the Listing, Renewal, and Monitoring of Health Institutions Conducting Medical Examinations for Migrant Workers (2015),” the scope of medical examinations will be expanded, requiring additional medical equipment. Now, migrant workers will have to undergo special tests for thyroid, kidney function, and sugar (HbA1c), along with a total of 34 types of medical tests.

Gold Price Reaches All Time High: The price of gold in the Nepali market has set a new record today. Gold has increased by NPR 1,200 per tola in a Thursday . With this, the price of fine gold per tola is being traded at NPR 180,300. This is the highest price recorded so far. Yesterday, gold was priced at NPR 179,100.

Similarly, Today, the price of silver has decreased by NPR 25 per tola. With this, silver is being traded at NPR 1,995 per tola. Yesterday, it was traded at NPR 2,020 per tola.