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The price of gold has increased by Rs 600 per tola in the domestic market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 104, 100 per tola today. The gold was traded at Rs 103, 500  per tola on Sunday. Meanwhile, tejabi gold is being traded at Rs 103, 600 per tola. Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 1,255 per tola today.

The first seven months of the current fiscal year have been noteworthy for the  Nepali insurance sector. While the drive for the merger in the banking sector seems to be gradually settling down with the conclusion of some big mergers and acquisitions (M&As), the consolidation in the insurance sector is in full swing. Life insurance companies recorded significant growth in their profits in the first half of the current fiscal year. The unaudited financial reports of the life insurance companies for the second quarter of the current fiscal year, the profits of the insurers increased by 72.51 percent in the first six months of FY 2022/23. The 18 life insurance companies posted profits totaling Rs3.37bn during the review period, an increase of Rs1.41bn from the same period of the last fiscal year. The companies earned a net profit of Rs 1.95bn in the first half of FY 2021/22. Nepal Life Insurance Company has topped the chart in terms of net profit earnings. The company posted a net profit of Rs440m in the first half of the current fiscal. Sun Nepal Life Insurance came second with a net profit of Rs353m followed by Surya Jyoti Life Insurance with Rs284.1bn. According to insurers, high deposit interest rates of banks and financial institutions have driven their profits as insurance companies keep most of their investable capital in fixed deposits of commercial banks. The fixed deposit interest rate for institutional investors climbed as high as 12 percent when the financial system was hit by a severe shortage of investible funds. Compared to life insurance companies, the profit of non-life insurance companies grew by 20 percent in the first half of the current fiscal. Marginal growth in premium collection While the profits have grown, the overall business of life insurance companies grew marginally in the first seven months of this fiscal year. According to Nepal Insurance Authority (NIA), life insurance companies collected premiums amounting to Rs83.32bn in the first seven months of the current fiscal year. The premium collection of life insurance companies during the same period of the last fiscal stood at Rs81.30bn. The business of non-life insurance companies grew by almost six percent in the first seven months of the current fiscal year. The 18 non-life insurance companies that are in operation in Nepal, have collected Rs23.06bn as insurance premiums till mid-February, 2023. Non-life insurance companies' insurance premium has increased by Rs1.25bn in the first seven months of FY 2022/23. Such insurance premium stood at Rs21.81bn during the same period of the last fiscal year. Insurance sector experts have termed the growth rate of the non-life insurance business as not encouraging. The growth rate of the non-life insurance business was high in the last few years. "The non-life insurance business has been affected this year due to the economic downturn and high inflation rate,"  said Raju Raman Paudel, Executive Director of NIA. Merger drive In the last one year, a series of merger agreements have been signed among both, life insurance and non-life insurance companies. The merger momentum in the Nepali insurance sector intensified after NIA increased the minimum paid-up capital requirements for insurers of both categories. The authority has increased the paid-up capital of non-life insurance companies to Rs2bn while it is Rs5bn for life insurance companies. The authority has been pushing for consolidation in the Nepali insurance sector since the new Chairman Surya Silwal took charge of NIA. Of the 19 insurance companies involved in the merger process, six companies have merged to become three and have started their integrated business while 13 others are still in the process of completing their merger process. According to NIA, 10 non-life insurance companies have signed merger MoUs to become five, while nine life insurance companies have also signed merger deals to become four entities. So far, two life insurance companies and six non-life insurance companies have completed the merger process and have started integrated business. Life Insurance Companies’ Profit (First Six Months)

With the Nepali rupee continuous weakening against the US dollar, Nepal’s debt liability to external creditors has increased substantially in domestic currency terms. The fluctuation in the foreign exchange rate has resulted in an exchange loss of Rs 43.72 billion during the second quarter of the current fiscal year, according to the Public Debt Management Office (PDMO). This calculation is based on the exchange rate difference at the beginning of the second quarter on October 17 and the end of the quarter on January 14. PDMO data shows that during the review period, the domestic currency plunged by Rs 1.64 per US dollar. By the end of the second quarter of the current fiscal year, Nepal’s total external debt reached an equivalent of Rs 1.1 trillion. ‘The exchange losses of nearly Rs 44 billion does not mean that Nepal is losing an equivalent amount this fiscal year,” said a senior PDMO official. “We are not paying the entire debt in a year but we had to pay more  for the debt repaid during the second quarter in proportion to the weakening of the exchange rate during the quarter.” During the second quarter, the government spent Rs 10.36 billion in repaying external debt including both principal and interest.   The country will have to spend more to cover the exchange rate losses in the domestic currency provided that the exchange rate of the domestic currency remains weak. During the first quarter of the current fiscal year, fluctuations in the rate of exchange resulted in an exchange loss of Rs 5.52 billion, according to PDMO. At the beginning of the fiscal year on July 16, 2022, the exchange rate was Rs 128.11 to the dollar. By October 17, 2022 (the end of the first quarter), the greenback had risen to Rs 132.07. As the country’s debt size is on the rise, the weakening of the domestic currency contributes to increasing the liability of the country further. Nepal’s total debt hit the Rs 2 trillion rupee mark for the first time last fiscal year, 2021/22. According to PDMO,  Nepal’s total debt had reached Rs 2.01 trillion, which is equivalent to 41.47 percent of Nepal’s gross domestic product (GDP). Though Nepal’s current debt level is not alarming, the country’s total debt doubled to Rs 2 trillion from just Rs 1 trillion in FY 2018/19, suggesting a staggering rise in a short period of time. The country’s total debt reached as high as Rs 2.07 trillion at the end of the second quarter of the current fiscal year. Of the total debt by the end of the second quarter of this fiscal, the share of the external debt stands at 53.24 percent of total debt. The government’s debt liability has increased at a time when the government has been struggling to collect enough revenue. The government collected revenue amounting to Rs 567.60 billion as of March 11  of the current fiscal which is not enough even to fund the recurrent expenditure of the government. The government’s recurrent expenditure during the same period stood at 598 billion, according to the Financial Comptroller General Office. In fact, the total revenue collection is negative with the government failing to collect revenue equivalent to the amount it collected last fiscal year. During the same period in the last fiscal year, the government had collected Rs 677 billion in revenue. As debt falls under the category of compulsory liability, the government must pay the liability of loans even by slashing the budget allocated elsewhere. Through the mid-term review of the budget, the government slashed the budget size by 13.59 percent. But the debt liability like the liability for salary and pension is not part of budget cuts. “Though the budget allocated for paying internal debt is not enough, the allocated budget for paying external debt is likely to be enough,” the PDMO official said.

Nepal defeated the United Arab Emirates (UAE) by 177 runs in the second match of the final tri-series of the ICC Men’s Cricket World Cup League 2 held at TU Cricket Ground in Kirtipur on Sunday. With the win, Nepal have retained their one-day international status (ODI) status. Nepal, who chose to bat first after winning the toss, scored 248 runs in 49.2 overs by losing all the wickets. Chasing the target of 249 runs in the second innings, the UAE managed to score only 71 runs in 22.5 overs. Lalit Rajbansi took five wickets for Nepal. Likewise, Sandeep Lamichhane claimed two wickets. Similarly, Dipendra Singh Airee, Sompal Kami and Gulsan Jha took one wicket each. Captain Rohit Paudel and Bhim Sarki played an important 54-run partnership. Sarki scored 29 off 37 balls hitting four boundaries. Arif Sheikh, who came to the crease at number 5, and skipper Paudel shared an 86- run partnership. Paudel returned to pavilion scoring 77 runs off 112 balls hitting nine boundaries. Sheikh made 43 runs off 52 balls and Gulsan Jha scored 37 runs off 32 balls. Similarly, Dipendra Singh Airee returned to the pavilion adding 34 runs off 19 balls in the scoreboard.      

The Nepal Stock Exchange (NEPSE) plunged by 26. 80 points to close at 1,975.89 points on Sunday. Similarly, the sensitive index dropped by 5. 55 points to close at 373. 95 points. A total of 4,772,140 unit shares of 260 companies were traded for Rs 1. 66 billion. Meanwhile, Shuvam Power Limited was the top gainer today with its price surging by 9. 98 percent. Likewise, Goodwill Finance Limited Debeanture was the top loser with its price dropped by 6. 55 percent. At the end of the day, the total market capitalization stood at Rs 2. 86 trillion.

The Election Commission will publish the final name list of the candidates vying for the election to the post of Vice-President by 5 pm today. Four people have filed their nominations for the election and the Office of the Election Commissioner is scheduled to publish the final name list today. According to the Office, prior to the publication of the name list, some procedures such as assessment of the nominations and complaints filed over them, publication of the preliminary name list, and withdrawal of candidacy will take place. The election of the Vice-President is taking place on March 17. Earlier, the Election Commission directed the election officers to ensure the registration of nominations that are different from the gender or community of the newly elected President.

The price of gold has increased by Rs 700 per tola in the domestic market on Sunday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 103, 500 per tola today. The gold was traded at Rs 101, 800  per tola on Thursday. Meanwhile, tejabi gold is being traded at Rs 103, 000 per tola. Similarly, the price of silver has increased by Rs 25 is being traded at Rs 1,245 per tola today.

The Khumbupasanglhamu Rural Municipality has introduced a new plan for climate justice in Khumbu region also known as Everest region in Solukhumbu district. The rural municipality and the social organizations working in this area have joined hands in a strategic partnership to work effectively on the issue of climate change within the next five years. The rural municipality started the work by signing an agreement for five years in a program held in Khumjung. Deputy Speaker of the House of Representatives Indira Rana Magar, who had reached Khumbu, the high Himalayan area of Solukhumbu, for trekking among others, was also present in the program. Vice-Chairman Tashilhamu Sherpa on behalf of the rural municipality and Prajita Karki, Chairperson of the Sathsathai Foundation, signed the agreement. Speaking at the program held in Khumjung on Wednesday, Deputy Speaker Magar said that she saw many women facing problems due to the climate change while trekking in the Khumbu region. She was of the opinion that the government should organize a climate adaptation program in the Himalayan region. Saying that it was the positive step of the rural municipality to start a strategic work for climate justice, the Deputy Speaker expressed her commitment to extend all necessary facilitation to ensure the implementation of the program. Saying that the climate change has caused various problems in this region and it has directly affected the local people, House of Representatives lawmaker Manbir Rai of the Solukhukbu said that all should be united for local justice. “The problems of the people of Khumbu are the problems of the country. That is way, all the concerned agencies should join hands together to resolve the problem and to provide justice to the victims,” Rai said. Saying that various works are being carried out from the rural municipality level to resolve the problems seen in the people, rural municipality Chairman Mingmar Chiri Sherpa said that the partnership with the Sathsathai will be helpful more in the future. Saying that the local government has done significant work to protect the environment, Sherpa said that as Mount Everest is the property of the world, all should pay attention to protect this area. Chairperson of Sathsathai, is a women-focused non-profitable organization, Prajita Karki expressed her commitment to draw the attention of federal government and international platforms by studying the problems of the Khumbu area seriously. On the occasion of International Women’s Day, the Sathsathai organized a six-day trek from Lukka to Khumjung to understand the effects of climate change and to ask the problems of affected people. Sixteen people including Deputy Speaker Rana Magar, former Foreign Minister and National Assembly member Dr Bimala Rai Paudyal, Joint Secretary at the Agricultural Ministry Dr Sabnam Shivakoti, experts Dr Madhav Karki, Dr Yamuna Ghale, Saru Shrestha and Deepak Das among others took part in the trekking. During the trekking, the team including Deputy Speaker Rana Magar concluded that the climate change has badly affected agriculture, health and tourism in the area and said that a strategic work should be started in the coming days. The Sathsathai has also been carrying out various works in collaboration with Helambu Rural Municipality of Sindhulpalchok for climate justice. Earlier, a documentary on the adverse impact of climate change in Nepal was screened at the 27th Conference of Parties to the UN Framework Convention on Climate Change (COP 27) in Egypt. The documentary film on damage caused by climate change was made by Sathsathai Foundation.