Outstanding arrears reach Rs. 755 billion

Kathmandu, May 15

Cumulated arrears in the country have reached Rs. 755 billion, concluded the Office of the Auditor General (OAG) report for the Fiscal Year 2024/25 unveiled on Friday. The arrears witnessed 2.99 per cent increase from the previous year.

Till FY 2023/24, arrears stood at Rs. 667.08 billion. Rs. 88.09 billion was added last year.

The OAG conducted audits worth Rs. 9.484 trillion in the last fiscal year, covering federal, provincial and local levels, organised institutions, and other bodies and committees designated under federal law.

The OAG conducted the audits of 3,050 federal ministries and agencies amounting to Rs. 2.917 trillion, 1,124 provincial ministries and agencies amounting to Rs. 320.30 billion, and 721 local levels amounting to Rs. 1.109 trillion.

Similarly, the audit of 54 fiscal years for 44 organised entities other than ministries and line agencies, involving an amount of Rs. 4.688 trillion, has been completed. In addition to this, for 46 fiscal years of 40 entities where consultation was provided, the designated auditors have completed audits amounting to Rs 1.832 trillion. The settlement of arrears is handled by the boards of the respective organised entities themselves.

However, the Gen Z movement impacted the audit work. Audits amounting to Rs. 147.90 billion could not be carried out as 179 offices and agencies failed to submit their accounts and related records as they were destroyed during the movement.

Of Rs. 88.09 billion arrears added in FY 2024/25, Rs. 53.48 billion is from the federal government offices. Rs. 5.22 billion from provincial government offices and Rs. 19.04 billion from local governments. Federal and provincial governments' committees and other offices have generated Rs. 10.32 billion arrears.

Through the settlement and clearance of previous irregularities and issues identified this year, only Rs. 14.63 billion has been recovered.

 

Madhes records highest arrears

In provinces, Madhes recorded the highest percentage of audit irregularities with an irregularity rate of 3.77 per cent last year. Audits of 150 offices in the province covering accounts worth Rs. 49.69 billion were conducted, of which irregularities amounting to Rs. 1.87 billion were identified.

Likewise, Bagmati recorded the lowest irregularity rate at 0.83 per cent. Audits of 209 offices in Bagmati covering Rs. 83.15 billion found arrears worth Rs. 693.7 million.

In Koshi, arrears amounted to Rs. 555.3 million – 1.12 per cent of the total audited amount Rs. 52.38 billion.

Arrears in Gandaki amounted to Rs. 540.3 million, Lumbini Rs. 633.2 million. Karnali Rs. 700 million and Sudurpaschim Rs. 555.9 million.

 

70% arrears in Finance Ministry

The OAG Report found that the highest amount of arrears (70.36 per cent of the total Rs. 53.48 billion) is generated at the Ministry of Finance, among the federal ministries.

An audit of Rs. 2.244 trillion under the MoF found a total of Rs. 37.63 billion in arrears, including Rs. 20.95 billion to be recovered, Rs. 16.63 billion requiring regularisation, and Rs. 45.7 million in outstanding advances.

The Ministry of Physical Infrastructure and Transport followed the MoF with 13.28 per cent share in the total arrears. An audit of Rs. 123.93 billion under the Ministry revealed total irregularities of Rs 7.10 billion, including Rs. 2.20 billion to be recovered, Rs. 4.40 billion requiring regularisation, and Rs. 488.1 million in outstanding advances.

Likewise, the Ministry of Land Management, Cooperatives and Poverty Alleviation recorded 2.87 per cent of the total arrears, with total unsettled amounts of Rs. 1.53 billion. The Ministry of Forests and Environment reported irregularities of 2.52 per cent, equivalent to Rs. 1.34 billion.

The Ministry of Communications and Information Technology has arrears amounting to 2.18 per cent - Rs. 1.16 billion.

Similarly, arrears at the Ministry of Urban Development stood at Rs. 805.1 million, the Ministry of Foreign Affairs Rs. 743.4 million, the Ministry of Energy, Water Resources and Irrigation Rs. 652.6 million, the Ministry of Home Affairs Rs. 577.2 million, and the Ministry of Health and Population Rs. 524.3 million.

Published in The Rising Nepal daily on 16 May 2026.           

Care Economy becomes strategic SAARC Priority

Kathmandu, May 15

The two-day ministerial dialogue, 'TransformCare South Asia: Transforming Care Systems for Advancing Women’s Economic Empowerment in SAARC' that concluded in Kathmandu on Thursday, positioned the care economy, for the first time, as a strategic pillar for cooperation in the sub-region.

Member countries of the South Asian Association for Regional Cooperation (SAARC) are working towards a historic regional roadmap to transform care systems, aiming to unlock women’s economic potential and drive inclusive growth across South Asia, the organisers said.

The event was co-organised by UN Women and the SAARC Secretariat, with support from the Ministry of Gender Equality and Family of South Korea.

"South Asia continues to have one of the lowest female labour force participation rates globally, with unpaid care responsibilities borne disproportionately by women and girls limiting their access to employment and leadership opportunities," the organisers said. Closing gender gaps in female labour force participation could increase South Asia’s GDP by up to 51 per cent.

Investing in the care economy can expand women’s labour force participation, while helping to realise women’s rights to education, rest, participation in public life and equal opportunities too often constrained by unequal care responsibilities, said Nyaradzayi Gumbonzvanda, UN Assistant Secretary-General and UN Women Deputy Executive Director.

UN Women research showed that investments in the care sector can generate two to three times more jobs than equivalent investments in sectors such as construction, while also enabling more women to enter and remain in the workforce.

Through the TransformCare Investment Initiative, UN Women offices across South Asia provide technical expertise, data-driven evidence and financing strategies to help SAARC countries turn these regional goals into national realities, read the statement.

A key output of the ministerial dialogue was the formulation of a zero-draft Action Plan for Transforming Care Systems in South Asia for SAARC countries.

Emphasising the need to transform care systems for women’s economic empowerment, Ambassador Md. Golam Sarwar, SAARC Secretary-General, said that the care economy is not a niche social issue, nor is it a peripheral concern for the benevolent. "It is an economic imperative, a demographic necessity, and above all, a moral calling. If we are serious about inclusive growth, we must be serious about care. The future of South Asia depends not only on how we grow, but on how we care for one another,” he said.

According to the organisers, positioning care as a common priority enables SAARC countries to leverage shared cross-country learning, align policy approaches, and scale solutions that benefit women and girls, particularly those most underserved.

Gunakar Bhatta, vice-chair of the National Planning Commission, said that it is time to move from promises to delivery.

Stating that Nepal’s engagement in this dialogue reflects our commitment to moving from care promises to care delivery, he said. "Investing in care services is not a cost, but a growth strategy that creates jobs, strengthens families, and accelerates inclusive development across South Asia.”

Published in The Rising Nepal daily on 16 May 2026.           

World Bank interested to expand investment in education

Kathmandu, May 14

The World Bank has expressed interest in increasing investment in Nepal’s education sector.

During a courtesy call with Minister for Education, Science and Technology Sasmit Pokharel at his office on Thursday, the World Bank’s Country Director for Nepal, David Sislen conveyed the institution’s desire to expand its investment in Nepal’s education sector.

The meeting included detailed discussions on education sector reform, expansion of infrastructure, and the development of a technology-friendly education system, informed the Ministry of Education, Science and Technology (MoEST).

During the discussions, the World Bank said that it was interested in further investment and cooperation in Nepal’s education sector, particularly in the development of schools and educational infrastructure. According to the Ministry, positive discussions were also held on making partnerships more effective in order to support long-term reforms and expand access to quality education.

On the occasion, Minister Pokharel briefed the delegation on the MoEST's current priorities, and said that the government was advancing educational infrastructure development, strengthening foundational learning, and expanding digitalisation and technology in education as key agendas.

“Building a quality, inclusive and technology-friendly education system is the primary objective of the government. Cooperation with development partner organisations will be further strengthened,” said Minister Pokharel

The meeting also discussed expanding access to digital education, improving learning outcomes, and modernising the education system in line with contemporary needs.

Published in The Rising Nepal daily on 15 May 2026.           

NRNA welcomes govt policies and programmes

Kathmandu, May 13

The Non-Resident Nepali Association (NRNA) has said that the high priority accorded to the NRNs in the government's Policies and Programmes for the upcoming Fiscal Year 2026/27 is an 'extremely positive step'.

"It is a welcome move for the state to formally acknowledge the sentiments, contributions, and potential of millions of Nepalis who are establishing their identity through hard work, knowledge, skills and ability in various countries across the world, and to express a clear commitment to integrating them into the mainstream of national development," it said in a statement on Tuesday.

According to the NRNA, the announcement to establish a 'Diaspora Expert Network' and a 'Knowledge Bank', alongside the government's vision to link the capital, skills, experience, technology, and international networks of Nepalis abroad with Nepal's social and economic development, has enhanced new hope and trust.

"Today, Nepalis across the globe are not merely sources of remittances, they are distinct carriers of knowledge, technology, innovation, entrepreneurship, international reach, and global experience," read the statement, while adding that the Policies and Programmes presented a solid and positive roadmap for utilising global expertise and experience in the national interest.

The NRNA also expressed optimism that programmes such as capital market reform, securities regulation, restructuring of NEPSE and clearing systems, institutional investment expansion, infrastructure bonds, and the development of the debt and bond markets will create an investment-friendly environment in Nepal.

"It will also prepare the foundation for long-term economic stability and transformation. We believe that the government's commitment to making the investments of non-resident Nepalis safe, transparent and easy, will further inspire migrant Nepalis to expand their investments in Nepal," said the NRNA.

It further said that the issue of further strengthening policy and legal arrangements related to the citizenship, financial access, investment security, and democratic rights of non-resident Nepalis is also an important one.

While stating that it is a positive achievement that most of the issues raised by Nepalis living abroad for years have been included in the Policies and Programmes, it reiterated commitment to a more organised partnership in the journey towards national prosperity, and serving as a bridge for foreign investment and technology.

In the Policies and Programmes for the next year, the government announced to provide 'Nepal Investment Visa' to investors making investments above the threshold set by the government.

Documentation of the skills of youths returning from foreign employment through a 'Skills Passport' and providing international professional certification, operation of 'Remittance-Investment Matching Fund' to channel remittances from consumption into productive investment, and creating legal basis for remote work policy have also been announced in the Policies and Programmes.

The government has also announced a 24/7 Central Response Unit, to ensure the safety and protection of the rights of Nepalis living abroad, will be established and operated under the Ministry of Foreign Affairs, along with rapid rescue teams at diplomatic missions. Likewise, passport and consular services provided by Nepali missions abroad will be strengthened.

Similarly, individuals returning from foreign employment will be encouraged to engage in agricultural enterprises.

Published in The Rising Nepal daily on 14 May 2026.           

Debate over provinces reopens with initiation for constitution amendment

 Kathmandu, May 10

At a time when public sentiment is quite against the provinces in the current three-tier federal system in Nepal, concerns are growing about the fate of the subnational governments with the government forming a task force to study and suggest reforms in the constitution.

Not only the ruling Rastriya Swatantra Party (RSP), but also the opposition parties have expressed commitment for constitution amendment in their election manifestos.

Many of those who favour the provincial structure are apprehensive of the RSP's earlier policy to scrap it. However, this has been greatly moderated with the its Senior Leader and now Prime Minister, Balendra Shah, announcing at the very first election mass meeting in Janakpur that the provinces would be strengthened.

Later, the RSP's manifesto promised to continue with the provincial structure. The party said that within three months of assuming office, a ‘discussion paper’ regarding proposals for constitutional amendments would be prepared with the aim of building a national consensus.

According to it, a reformed provincial structure will be an agenda for the amendment along with a fully proportional parliament, a provision ensuring that members of parliament cannot serve as ministers, and non-partisan local government.

Federalism expert and chair of Federalism and Localisation Centre (FLC), Dr. Khim Lal Devkota, said that common people have an impression that provinces have added additional burden to the state with too many ministries and are running sans good governance. They are not innovative and have been the carbon copy of the federal government.

Contrary to it, the provinces blame the federal government for unnecessary interference without lending hand for cooperation and collaboration. Provinces also say the federal government doesn’t support them in the formation of necessary laws and provide staff to run every day operations.

Speaking at an interaction on federalism in constitution amendment organised by FLC in Lalitpur on Sunday, Dr. Devkota said that provinces are not expensive as they only use 4.69 per cent of the total national budget and 61 per cent of their budget is allocated for development work.

RSP Lawmaker Mohan Lal Acharya, who is also the member of the task force, said that many problems were created not because of the intention of the policy provisions but their distorted implementation.

"The issues in federal governance that are not obstructed by the constitutional provisions should be immediately reformed and resolved. Then we can plan for the reforms in the critical areas," he said.

The task force is led by Political Advisor to the Prime Minister Asim Shah and includes Acharya from RSP, Bhishma Nath Adhikari from CPN (UML), Dev Prasad Gurung from Nepali Communist Party, Gyanendra Shahi from Rastriya Prajatantra Party, Manoj Bhatta from Rastriya Janamorcha, law secretary at the Prime Minister's Office Pushkar Sapkota, Secretary of Nepal Law Commission Indira Dahal and Chief of Law and Judgement Implementation Division at the PMO, Liladhar Subedi.

Speaking at the programme, Acharya said that the task force will create a discussion paper after extensive consultations with stakeholders.

"There are less chances of scrapping the provincial structure for the time being but we must scrap the district administration which has created a fourth level in the three-tier federalism," he stated.

According to him, relocating ministries like education, health and agriculture along with their departments to the provinces will help in streamlining the services and increasing efficiency.

 

Weak leaders weakened provinces

Nima Giri, a lawmaker from Lumbini Province, said that appointment of weak leaders to the post of chief minister has contributed to the poor performance of provinces.

"Chief secretary of the province is de facto chief minister," she said.  

President of the Nepal Federation of Indigenous Nationalities Nima Lama Hyolmo showed apprehension towards radical changes in the current status and structure of provinces. However, he advocated for directly elected chief minister to ensure stable leadership in the sub-national government.

Many experts said that provinces should be shaped as development institutions to carry out social and infrastructure development. If given more resources, they can perform better, they said.

NCP leader Gurung said that federalism should be redefined in a way where the central government will do the policy making, provinces development works and local body service delivery – this can be an effective proposition to make the current federal structure effective.

Gurung and several experts indicated that the chief ministers could be elected directly to ensure political stability at the provinces. 

 

'Tourist' staff hampered governance

Dr. Dipendra Rokaya, former planner from Karnali Province, suggested to keep nine ministries at the centre and five in the provinces to reduce the size of the government and administrative costs.

"Entire Humla is a single election constituency which means it gets less budget, less attention and less representation. Our voices are not being heard. This is the challenge," he said while adding that the current formula allocated more budget to the areas on the basis of demographics.

Most of the staff at provinces and local bodies are 'tourists' who don't care about the sustainable development and governance, he said.

Former chief secretary Dr. Som Lal Subedi suggested to take into account the governance capacity of provinces as well as federal government. "One federal infrastructure agency has more budget and power than the provincial chief minister. We only created skeleton of the federal structure but failed to give life to it," he said.

Likewise, former chief minister of Madhes Lal Babu Raut raised concerns over the intentions of the federal leaders, including prime minister, in enabling provinces in the spirit of the constitution.

"No political leader of major political parties contributed to strengthening the provinces but their efforts were to weaken the system. They were not honest in this regard. Province police and civil servant law of Madhes were good examples, we were actually obstructed by the federal government," he said.

According to him, once there was a situation – federal leaders neither wanted to kill the provinces nor activate them.

 

Power sharing, not decentralisation

Meanwhile, many experts also suggested the provinces to execute the existing right list.

Leader of UML Adhikari said that all service delivery units should be sent down to province or local level. "Initially, there were doubts about the capacity of both provinces and local governments but now they have proven their ability," he said.

He suggested to review the practice of provinces in generating resources and exercising their rights and improving service delivery. Continuing with the current structure in the name of federalism will be counterproductive, he said.

Likewise, leader of Nepali Congress parliamentary party in the National Assembly Radheshyam Adhikari said that altering the rights of the subnational government will be more challenging since provincial consent should also be maintained.

"This is not decentralisation, it’s power sharing, many leaders still don't understand it. Nobody cared for power sharing," he said.   

Published in The Rising Nepal daily on 11 May 2026.           

Khalti launches saving facility

Kathmandu, May 12

IME Khalti Limited (Khalti) has launched its ‘Super Wallet’ facility to provide direct interest on wallet balances for all users. Operated in partnership with Global IME Bank Limited, this is Nepal’s first digital wallet service, claimed the company.

"With this launch, Khalti has become Nepal’s first digital payment platform to introduce the era of ‘neo banking’," it said in a statement on Tuesday.

Previously, this interest feature was available only to a limited number of users who had migrated from the former IME Pay platform. Khalti has now removed this restriction and extended the ‘Super Wallet’ service to all KYC-verified individual users.

At present, the service offers interest at an annual rate of 2.75 per cent. As the rate is based on the standard interest rate determined by the partner bank, it may change on a monthly basis. Once the Super Wallet is activated, interest on the wallet balance will be calculated daily and automatically credited to the wallet each month.

To access the facility, users must have a KYC-verified account and must either have completed at least 10 successful transactions after verification or maintained an overnight wallet balance of at least Rs. 1,000.

According to the company, the feature is available only for personal accounts, POS and merchant accounts are not eligible.

CEO of IME Khalti Limited Praveen Regmi said that through the new feature, the company is reading to the section of Nepal’s population that still remains beyond the reach of the formal banking system.

Published in The Rising Nepal daily on 13 May 2026.           

Budget should support income generation: CNI

 Budget of Fiscal Year 2026/27

 

Kathmandu, May 10

The Confederation of Nepalese Industries (CNI) urged the government to adopt policies that treat the private sector as an engine of development and promote industrial and investment growth.

Submitting its recommendations for the upcoming budget of fiscal year 2026/26 to Finance Minister Dr. Swarnim Wagle at his office on Sunday, it said that the budget should support income generation and wealth creation.

The CNI urged the government to prioritise industry through policy reforms and ensure policy stability for at least 10 years. It also recommended implementing an industrial development strategy focused on products with competitive potential and introducing a budget centred on employment, production and import substitution.

It further suggested maintaining at least a two-tier customs duty difference between raw materials and finished goods, introducing a net settlement system for refunds or adjustments of customs duties and other refundable amounts on industrial raw materials, and promoting domestic production through tax exemptions on imported raw materials for industries using at least 40 per cent domestic raw materials.

The confederation has submitted sector-specific budget recommendations relating to industry and investment, foreign direct investment, tax policy and systems, customs, tourism, agriculture, herbs and forest products, energy and information technology, infrastructure, fiscal governance, finance and promotion of domestic production.

Similarly, CNI called for making the tax system simpler, integrated and limited in type, while clarifying VAT, income tax and excise duty provisions through explanatory notes. It also proposed reducing income tax rates and increasing the minimum threshold for personal income tax for individuals to Rs. 1 million.

The private sector business body suggested implementing a risk-based audit system, digitising tax administration, and introducing mechanisms for tax dispute resolution and advance rulings.

It further proposed upgrading testing, certification and laboratories to international standards and initiating negotiations with India for mutual recognition of certification systems and standards such as NS and ISI.

"Priority should be given to domestic products in public procurement, a digital portal should be introduced for identifying and procuring domestic products, policies for the sustainable use of natural resources should be simplified, and subsidy systems based on production, employment and exports should be implemented," read the statement.

CNI additionally suggested repealing the Foreign Investment Restriction Act, 2021, which prohibits overseas investment, and introducing clear provisions governing approval procedures and regulation for investments abroad.

"We recommended adopting policies to attract private-sector participation in large infrastructure projects and removing land ceiling restrictions for land required under approved industrial projects," said CNI.

Presenting the recommendations, CNI President Birendra Raj Pandey expressed confidence that addressing and implementing the recommendations put forward for the upcoming budget would significantly improve economic expansion, employment generation and investment growth, thereby contributing meaningfully to the country’s prosperity.

Responding to the recommendations, Finance Minister Dr. Wagle said private-sector capital is essential for development. He said that legal reforms and improvements to the tax system are necessary and emphasised the importance of recognising wealth creation. He added that private investment should be encouraged in infrastructure development.

The meeting was attended by former CNI President Rajesh Kumar Agrawal, former presidents Hari Bhakta Sharma and Vishnu Kumar Agrawal, Senior Vice-President Nirvana Chaudhary, Vice-Presidents Hem Raj Dhakal, Bhim Ghimire and Gokul Bhandari, and other office bearers.

Published in The Rising Nepal daily on 11 May 2026.