Banking News – Nepal’s Finance Minister Swarnim Wagle has postponed the release of a planned economic white paper following a sharp decline in the country’s stock market, citing concerns that it could further weaken investor confidence.

According to sources at the Ministry of Finance Nepal, the decision was made after officials assessed the risk that the report might send negative signals to the market during a period of volatility.

The minister had earlier planned to publish the white paper detailing the country’s economic condition up to March 25 (Chaitra 12 in the Nepali calendar). Preparations had reportedly been completed to release the document on Sunday. However, the plan was suspended the same day after the stock market index dropped by 105.5 points.

The benchmark index of the Nepal Stock Exchange fell to 2,676.68 points following the single-day decline, creating what market observers described as a “landslide-like” situation in the secondary market.

Following the steep drop, investors also staged protests near Singha Durbar, expressing concerns about the market downturn.

Government officials were reportedly concerned that the white paper could present a pessimistic economic outlook or include criticism of the previous administration, potentially worsening market sentiment. As a result, the Finance Minister decided to temporarily hold back the report.

Meanwhile, representatives of the Stock Broker Association of Nepal met the Finance Minister on Monday, urging the government to clarify its position on the stock market. They warned that policy intervention becomes more difficult once the market has already deteriorated and called for timely government action.

The brokers also informed the minister that recent arrests of businesspersons under anti-money laundering investigations have created fear among investors, contributing to the market decline.

The association further proposed several measures to help stabilize the market, including:

• Removing the six-month investment cap imposed on banks and financial institutions,
• Facilitating easier investment access for Non-Resident Nepalis (NRNs),
• Clarifying whether capital gains tax is final or advance,
• Directing the Securities Board of Nepal and the Nepal Stock Exchange to implement a Settlement Guarantee Fund.

During the meeting, Minister Wagle urged investors not to panic and assured that the government would take necessary steps to maintain market stability.