Nepali economy Sees Market Dip, Key Appointments Pledge, Climate Goals Advanced, and More

Kathmandu, Nepal – Thursday, May 15, 2025, brought significant developments across Nepal’s economic, political, health, and environmental sectors. Here’s a complete roundup of the day’s key stories:

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🏦 Economy and Finance

The Nepal Stock Exchange (NEPSE) index declined by 12.04 points, closing at 2,661.64, marking the fifth consecutive day of downturn. The trading volume increased to Rs. 11.65 billion, indicating active investor participation despite market uncertainty.

📊 Sector Performance

• Gainers:

  • Hotels & Tourism: +4.91%

  • Trading: +0.70%

  • Mutual Funds: +0.29%

  • Microfinance: +0.06%

• Losers:

  • Development Banks: -2.12%

  • Hydropower: -0.65%

  • Banking: -0.30%

  • Life Insurance, Finance, and Others also registered losses.

📢 Company News & Updates

• Nepal Life Insurance led the sector with over 9% profit growth.

• Non-life insurers saw profits plunge by 54.45%, mainly due to disaster claims.

• Himalayan Reinsurance posted a 6.25% profit growth in Q3.

• Taragaon Regency (Hyatt) earned Rs. 337.5 million in nine months.

• National Life Insurance announced a 15% dividend (10% cash, 5% bonus).

• Nepal Infrastructure Bank (NIFRA) launched Nepal’s first Green Bond worth Rs. 5 billion.

• Sanvi Energy’s IPO is scheduled from May 23–27.

Other companies, including LICN, NLICL, NLG, RNLI, HRL, Maya Khola, and Crest Micro Life, also made dividend and AGM announcements.

🔍 Regulatory Developments

• NEPSE has directed all listed companies to digitally update financial and organizational details.

• SEBON is expediting IPO approvals and investigating delays tied to alleged irregularities.

• SEBON Chair Santosh Narayan Shrestha is under scrutiny over alleged political favoritism.

⚠️ Risk & Oversight

• The 62nd Auditor General’s Report revealed concerns over:

  • Hydropower investments

  • Insider trading

  • Unpaid telecom revenues (Rs. 8.65 billion)

  • SEZ staff irregularities and tax exemptions worth Rs. 100 billion in FY 2080/81

💰 Banking and Interest Rates

• New interest rates effective May 15:

  • Savings: 3.00% to 5.10%

  • Fixed Deposits: Averaging 5.94% this month

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🏛️ Politics and Governance

Prime Minister KP Sharma Oli reaffirmed his commitment to appointing the Nepal Rastra Bank Governor based on merit, distancing from political favoritism. He reiterated his intention to hand over power to NC leader Sher Bahadur Deuba after 14 months.

• The CIAA filed a corruption case against lawmaker Mohan Bahadur Basnet and 15 others for alleged misuse of Rs. 3.21 billion in the TERAMOX procurement.

• The Revenue Advisory Committee proposed digital tax expansion, taxing real estate deals, and managing international platforms’ data.

• SEBON asked IPPAN to clarify allegations of bribery linked to IPO approvals. IPPAN denied formal complaints, stating the issue was resolved.

Other key updates:

• Pathivara Cable Car project cleared to proceed after court lifts interim order.

• Gandaki Province budget preparation continues amid coalition disputes.

• Arya Hotel & Spa, a new heritage hotel by NRN Krishna Simkhada, opened in Thamel.

• The Supreme Court will issue its verdict on constitutional appointments on June 11.

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🧠 Health Sector

Health Minister Pradeep Paudel called mental health a rising national concern. Plans include:

• Expanding the mental health workforce

• Integrating topics into the school curriculum

• Launching the School Health Ambassador Program

In Madhesh Province, Jaleshwor Hospital is struggling to meet patient needs due to a shortage of free medicines, disrupting emergency care for over 300 daily patients.

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🌏 Environment and Climate

The Cabinet approved Nepal’s third draft of its Nationally Determined Contributions (NDC) ahead of the Sagarmatha Sambaad, reaffirming a net-zero emission goal by 2045. Targets include:

• Renewable energy expansion

• Electric vehicle adoption

• Climate-resilient agriculture, forestry, and transport

• Preservation of urban heritage

Agriculture Minister Ramnath Adhikari urged regional collaboration to enhance disaster resilience and early warning systems.

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📚 Education

The parliamentary sub-committee on the School Education Bill 2080 completed detailed discussions and received a 10-day extension. Key consensus points include:

• Potential conversion of private schools to trusts

• Internal promotion system for teachers

• Removal of the SEE exam

• Provincial selection of head teachers

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🚨 Crime and Security

Seven individuals were arrested in Dhanusha for social media-based fraud. They used Instagram, TikTok, and Facebook to dupe users with fake product offers. Authorities tracked Rs. 2.63 crore flowing through 187 manipulated accounts.