Nepal News Evening Economic Brief – April 26, 2025

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:

PM Oli Urges Self-Reliance After MCC Termination News:

Prime Minister KP Sharma Oli said Nepal must not depend on foreign aid for development, referring to the termination of the Millennium Challenge Corporation (MCC) project by the United States. Speaking at a UML Parliamentary Party meeting, Oli noted that both MCC and USAID support had ended, stressing the need for Nepal to rely on itself. He also pointed out that U.S. pressure to implement MCC had caused major internal political conflict in Nepal.

GMR Capable of Managing Upper Karnali Financing, Says Investment Board Panel:

The Investment Board’s expert committee has recommended GMR manage the Upper Karnali project’s financial arrangements, despite India’s central bank rejecting IREDA’s 5% equity proposal. GMR, SJVN, IREDA, and NEA are key shareholders in the 900 MW project. GMR submitted documentation claiming secured investments from Indian and Nepali banks. A final decision is expected at the Board’s meeting on Sunday. GMR was initially awarded the Upper Karnali project in 2008 under a Build-Own-Operate-Transfer (BOOT) model.

NOC to Implement Dual Pricing for Cooking Gas:

Nepal Oil Corporation (NOC) is preparing to sell cooking gas under a dual pricing system, offering subsidies for household users while charging commercial users full price. In collaboration with Rastriya Banijya Bank, NOC is developing software to link consumers’ citizenship and bank accounts for the subsidy refund. The system, set for trial in Asar and full implementation next fiscal year, aims to address monthly losses of Rs. 1.14 billion from LPG sales.

Tribhuvan International Airport Handles Over 1.18 Million Passengers in Q1 2025:

Tribhuvan International Airport served more than 1.18 million passengers in the first three months of 2025, reaffirming its position as Nepal’s busiest airport. The airport recorded 7,443 flight movements, with slight fluctuations across January, February, and March.

It also managed significant cargo volumes, transporting over 6.23 million tons, comprising both imports and exports. Officials noted that while February saw a slight dip in operations compared to January, March witnessed a recovery in passenger and flight numbers.

Everest Climbers Must Summit 7,000m Peak:

The new Tourism Act 2081 mandates that climbers must first summit a mountain over 7,000 meters before receiving permission to climb Mount Everest. Registered in the National Assembly, the law aims to manage Everest expeditions, reduce overcrowding, and ensure climbers have prior experience. Nepal has about 80 peaks above 7,000 meters, including eight over 8,000 meters. The rule will take effect once the Act is passed and published in the official Gazette.

Nepal Showcases Tourism Opportunities at COTTM 2025 in Beijing:

Nepal actively promoted its tourism attractions at the 18th China Outbound Travel and Tourism Market (COTTM–2025) in Beijing, aiming to boost Chinese tourist arrivals.
The Nepal Tourism Board highlighted the country’s Himalayan beauty, cultural treasures, and adventure activities.
Nepali diplomats engaged with Chinese tourism operators to explore future collaborations.
The initiative is expected to strengthen Nepal’s tourism image in China, foster long-term partnerships, and create new opportunities in the Chinese travel market.

Nepal Flour Mills Association Signs Satellite-Based Agriculture Advisory Agreement with Agriwatch:

The Nepal Flour Mills Association has partnered with India’s Agriwatch to utilize satellite technology for agricultural identification, analysis, and advisory services in Nepal.
The agreement, signed during the Association’s 24th AGM, is the first of its kind from Nepal’s private sector. It aims to provide market analysis, production-consumption data, and AI-based crop advisory solutions. The collaboration is expected to help farmers and traders make informed decisions while supporting the government in framing future agricultural strategies.

Minister Bhandari Stresses Need for Policy Reforms on Intellectual Property Protection

Industry Minister Damodar Bhandari called for policy reforms to safeguard intellectual property and indigenous cultural arts on World Intellectual Property Day.
He emphasized raising awareness, protecting copyright, and promoting Nepal’s traditional arts and music. Minister Bhandari warned of legal actions against those who misuse Nepali artists’ works. Secretary Govinda Bahadur Karki noted the lack of awareness about intellectual property misuse and suggested amending outdated laws to address this issue.

Sarlahi Treasury Office Demands Sugarcane Crushing Details for Subsidy Distribution:

The District Treasury Controller’s Office, Sarlahi, has asked Indushankar, Mahalaxmi, and Annapurna sugar industries to submit details of farmers and crushed sugarcane quantities within a week. The move follows a decision to provide subsidies at Rs. 70 per quintal. Industry owners pledged to submit data soon. The subsidy amount, usually distributed during Dashain, is yet to be received. Farmers have been pressing for early payment amid delays from the government.

Sarlahi Treasury Office Seeks Sugarcane Crushing Details for Farmer Subsidies:

The District Treasury Controller’s Office, Sarlahi, has asked Indushankar, Mahalaxmi, and Annapurna sugar industries to submit details of farmers and sugarcane crushed within a week. The government plans to provide farmers a subsidy of Rs. 70 per quintal. Though industries halted crushing two months ago, they have committed to sending data. The subsidy amount, usually distributed during Dashain, has yet to reach the Treasury Office. Farmers are urging early disbursement.

Nepal Rastra Bank Takes Action Against Financial Institutions for Regulatory Violations:

The Nepal Rastra Bank has initiated action against three development banks and two finance companies for violating regulatory directives, including issuing warnings to chairpersons and CEOs.
Muktinath, Narayani, and Salpa development banks, along with Pokhara Finance and Janaki Finance, faced penalties and corrective actions. The NRB emphasized the importance of strengthening financial discipline and announced new measures for enhanced digital monitoring, risk-based inspections, and stricter penalties for serious violations.

NEPSE Falls by 65 Points in a Week, Investors Lose Rs 107 Billion:

The NEPSE index fell by 64.71 points this week, closing at 2,658.02. The market operated for five days, declining on four. Although turnover increased to Rs 40.98 billion, market capitalization dropped to Rs 4.419 trillion, erasing Rs 107 billion in investor wealth. Technical indicators show resistance at the 50-day moving average and support at the 200-day average, alongside a bearish engulfing pattern. Except for mutual funds and manufacturing, all sectors declined, and NEPSE fell below the 2,706 weekly pivot point.

Brokers Meet SEBON’s Capital Requirement, Reducing Merger Chances:

Nearly 80% of Nepal’s brokerage firms have already met SEBON’s requirement to raise their paid-up capital to NPR 200 million, significantly reducing the need for mergers.

SEBON had mandated the increase for 37 firms by Ashadh 2082 to foster market competitiveness and safeguard investors.

Despite initial concerns, most brokers managed capital internally, with the rest expected to comply soon. Analysts now view mergers as less likely due to the successful, self-driven capital upgrades across the sector.

Nepal’s Stock Market Rapidly Embraces Digital Trading:

Nepal’s stock trading has gone largely digital with the widespread use of Demat accounts, online TMS platforms, and digital payments. Through “Mero Share” and TMS, investors can now manage IPO applications, share settlements, and secondary market trades online, reducing reliance on brokers.
The Securities Board, NEPSE, CDSC, banks, and brokers have together pushed this digital transformation. The use of smartphones and internet access, accelerated during the COVID-19 pandemic, helped expand digital share trading across Nepal.

Climate Change Severely Impacting Children and Youth in Nepal: Minister Shahi:

Minister for Forests and Environment Ain Bahadur Shahi Thakuri highlighted that climate change is seriously affecting children and youth in Nepal, depriving them of their rights to a clean and healthy environment.
At a joint event organized by the Government of Nepal and the United Nations, officials stressed the importance of investing in children and involving youth in climate action.
The program, part of the Sagarmatha Dialogue Summit, saw participation from over a hundred children and youth nationwide.

Ten Shops Destroyed in Sanphebagar Fire:

A massive fire broke out at Sanphe market in Sanphebagar Municipality-3, Achham, at 3:30 AM Saturday, destroying ten shops. The blaze, caused by an electrical short circuit at Suvechha Hotel, spread rapidly, causing damage worth millions. Locals, Nepal Police, and Armed Police Force were mobilized to control the fire. Full details of the damage are awaited.