Provinces show wide economic disparities

Bagmati alone to contribute 38% to national economy

Bagmati’s per capita GDP to remain at US$ 2,644 while Madhes to stay at US$934

 

Kathmandu, May 20

Among the seven provinces of Nepal, Bagmati alone is estimated to contribute more than one-third (36.7 per cent) to the national economy in the current Fiscal Year 2025/26.

According to the statistics published by the National Statistics Office (NSO) on Wednesday, there is a stark disparity among the provinces in terms of the size of economy, contribution to the national economy and per capita Gross Domestic Product (GDP).

Bagmati is projected to contribute Rs. 2.42 trillion to the national economy, which is estimated to reach Rs. 6.6 trillion by the end of this year.

Karnali will make a nominal contribution with just 4.2 per cent or Rs. 277 billion, while Sudurpaschim’s input will stand at Rs. 464 billion (7 per cent).

Likewise, Koshi will contribute Rs. 1.043 trillion (15.8 per cent), Lumbini Rs. 937 billion (14.2 per cent), Madhes Rs. 863 billion (13.1 per cent), and Gandaki Rs. 593 billion (9.0 per cent).

According to preliminary estimates for FY 2025/26, Bagmati is expected to record the growth rate of 5.40 per cent – the highest annual growth rate in provincial GDP based on consumer prices, followed by Gandaki Province at 5.01 per cent.

Similarly, Madhes is projected to have the lowest annual growth rate, at 1.31 per cent, according to the NSO.

“While the national annual GDP growth rate, measured at constant consumers’ prices, is preliminarily estimated at 3.85 per cent, only Bagmati and Gandaki provinces are expected to record growth rates higher than the national average,” read a statement from the Office.

Other provinces are projected to grow at rates below the national average – Sudurpaschim 3.28 per cent; Koshi 3.13 per cent; Lumbini 2.87 per cent; and Karnali 2.94 per cent. This year, Bagmati, Gandaki, Koshi and Sudurpaschim are likely to surpass last year’s growth achievement – 5.29 per cent, 4.92 per cent, 2.72 per cent and 3.21 per cent, respectively.

In the last FY 2024/25, Madhes’ growth rate was 4.43, Lumbini's 4.27 and Karnali's 5.25 per cent. The performance of Madhes and Karnali is estimated to have significantly deteriorated.

 

Agriculture largest contributor

According to economic activities classified by industry, agriculture is expected to remain the largest contributor to provincial economies in all provinces except Bagmati this year. In Bagmati, wholesale and retail trade is projected to contribute the largest share.

“Trade — which holds the second-largest share at the national level — is also expected to rank second in both Koshi and Madhes,” read the report.

Similarly, real estate services are projected to make the second-largest contribution in Bagmati. In Gandaki and Karnali, public administration and defence are expected to rank second in terms of contribution, while in Lumbini and Sudurpashchim, education services are projected to hold the second-largest share.

On the other hand, administrative and support services are expected to contribute the least in Koshi, Gandaki, Lumbini and Sudurpaschim provinces, while mining and quarrying activities are projected to have the lowest contribution in Madhes, Bagmati and Karnali provinces, estimated the NSO.

 

Electricity and gas sector to see highest growth

In terms of the sectoral growth rate, the electricity and gas sector is likely to witness the highest value addition growth rate in Koshi, with 23.76 per cent. This sector is also estimated to be top achiever in Bagmati, Gandaki, Lumbini and Madhes as well, with 22.88 per cent, 23.9 per cent, 9.18 per cent, and 10.91 per cent growth, respectively.

However, in Karnali and Sudurpaschim, financial and insurance services arre estimated to achieve the highest value-added growth, with 8.40 per cent and 7.98 per cent, respectively.

 

Disparities in per capita GDP

As in the growth performances, Madhes is estimated to witness the lowest per capita GDP.

The NSO informed that, according to the preliminary estimates, Madhes’ per capita GDP in US dollars will remain at 934.

On the contrary, Bagmati is expected to record the highest per capita GDP of US$ 2,644.

Likewise, the per capita GDP is estimated to reach US$ 1,651 for Gandaki; US$ 1,410 for Koshi; US$ 1,208 for Lumbini; US$ 1,170 for Sudurpaschim; US$ 1,108 for Karnali; and US$ 934 for Madhes.

At the national level, per capita GDP is estimated at USD 1,513 for the current fiscal year.

Based on this estimate, only Bagmati and Gandaki provinces are expected to record per capita GDP above the national average, while the remaining provinces are projected to remain below it.

Published in The Rising Nepal daily on 21 May 2026.

FM Khanal telephones Saudi Prince Faisal

Kathmandu, May 20

Minister for Foreign Affairs Shisir Khanal held a telephone conversation with his Saudi Arabian counterpart Prince Faisal bin Farhan Al Saud on Wednesday and reaffirmed Nepal’s solidarity with Saudi Arabia during this challenging period.

FM Khanal also expressed his appreciation from the government of Saudi Arabia for ensuring the safety and security of Nepali nationals amid the ongoing conflict in the region, the Ministry of Foreign Affairs (MoFA) wrote on X.

"The two Ministers discussed the longstanding bilateral relations between Nepal and Saudi Arabia and reaffirmed their shared commitment to further strengthening cooperation at both bilateral and multilateral levels," read the post.

They also discussed avenues for enhancing collaboration in trade, investment and other areas of mutual interest, including the promotion of Saudi private sector investment in Nepal, as the two countries prepare to commemorate the Golden Jubilee of the establishment of diplomatic relations next year.

Published in The Rising Nepal daily on 21 May 2026.

APG-ICRG delegation meets FM Khanal

Kathmandu, May 20

A Joint delegation of APG-ICRG has briefed Foreign Minister Shisir Khanal about the progress made by Nepal, and reforms necessary for further compliance to exit the FATF Grey List.

The delegation led by David Shannon, Deputy Executive Secretary of APG Secretariat, paid a courtesy call at the Ministry on Wednesday.

FM Khanal expressed confidence in further enhancing national capacity, including through strengthening cooperation with the APG to exit from the Grey List at the earliest, the Ministry of Foreign Affairs (MoFA) informed in a post on X.

The delegation is on a support visit to Nepal from 18 to 20 May 2026.

APG-ICRG is the collaboration between the Asia/Pacific Group on Money Laundering (APG) and the International Co-operation Review Group (ICRG) of the Financial Action Task Force (FATF).

It manages the monitoring, assessment, and follow-up processes for jurisdictions that have strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) systems.

Published in The Rising Nepal daily on 21 May 2026.

Nepali workers' outflow to GCC drops by 47 %

Kathmandu, May 19

Migrant worker outflows from Nepal to the Gulf Cooperation Council (GCC) countries has dropped by 45 per cent in February-March this year compared to the same period in 2025, according to a report of the International Labour Organisation (ILO) published on Tuesday.

This drop further widened to 47 per cent in March-April this year, as compared to last year.

In March this year, 26,561 Nepali workers renewed their labour permits to return to West Asian countries, while 28,383 received labour permits for new entry, according to the Department of Foreign Employment. But individuals receiving labour approval for the first time couldn’t reach their destination as the government had banned their travel.

On the contrary, in March 2025, more than 52,000 Nepalis received labour approval and left for jobs in GCC countries.

While the Philippines witnessed a massive decrease of 78 per cent on a year-on-year basis, Bangladesh's drop sits at 15 per cent.

According to the report 'Employment and Social Trends May 2026 Update: Growing labour market risks of the Middle East crisis', the West Asia crisis is increasingly affecting jobs, working conditions and incomes far beyond the region, as higher energy costs, disrupted transport routes, supply chain pressure, weaker tourism and migration constraints weigh on economies and labour markets.

After the war broke out between Israel-USA and Iran earlier this year, the security situation in the West Asian nation has significantly deteriorated. This has not only impacted the businesses and workers there but also the national and household economy in many developing countries in South Asia and Northern Africa.

The Arab States are the most directly exposed, through conflict-related disruption, damage to economic activity, displacement, energy and trade shocks, and pressure on migrant workers and refugees, read the report.

The ILO predicted that total working hours could fall by 1.3 per cent under rapid de-escalation. This could reach 3.7 per cent under a prolonged crisis and 10.2 per cent under a severe escalation. Such a decline is more than twice the scale recorded during the COVID-19 pandemic in 2020. "Around 40 per cent of employment in the region is concentrated in high-exposure sectors such as construction, manufacturing, transport, trade and hospitality. Migrant workers are expected to bear a disproportionate share of labour market adjustment," read the report.

According to the recent news reports, jobs of about 80,000 Nepalis is at risk in Saudi Arabia following the suspension of the ambitious 'Future City' project.

“If the crisis disrupts both deployments and remittance flows, the effects could spread to consumption, poverty and local employment in countries of origin,” the report said.

 

Needs for rapid response mechanism

Meanwhile, a tripartite meeting among the government, Nepali missions abroad and the Non-Resident Nepali Association (NRNA) held on Tuesday, suggested to create a rapid response mechanism and operate it effectively to conduct timely rescue and repatriation of Nepalis in the conflict-affected countries.

The meeting discussed the safety and management of Nepali migrant workers in the conflict-affected countries in West Asia, and said that digital assistance system must be made effective and accessible.

The meeting, attended by the representatives of Labour Migration and Nepali Diaspora Coordination Division and concerned government and non-government agencies, suggested to immediately implement emergency rescue plans and safe transfer systems.

Stating that the coordination among the NRNA, Nepali missions and the government must be further strengthened and made more effective, the meeting recommended to make the crisis management and risk awareness mandatory components of pre-departure orientation training.

Other suggestions include updated data system for Nepali workers, access to psychological counselling, awareness campaign on foreign-employment-related fraud, and strengthened labour-related bilateral agreements.

Speaking at the meeting, Ramkaji Khadka, Head of the West Asia Division at the Ministry of Foreign Affairs (MoFA), updated the status of Nepalis in West Asia and said that Nepali missions in the respective GCC countries are vigilant on the situation and are regular communication with the Ministry.

 

NRNA for a high-level coordination mechanism

Recalling the rescue, relief and rehabilitation of Nepalis from countries including the West Asia during the COVID-19 pandemic, president of the NRNA Dr. Hem Raj Sharma emphasised the need for effective cooperation among the government and non-government stakeholders.

"A high-level coordination mechanism should be established immediately between the MoFA, Ministry of Labour, Foreign Employment Department, Foreign Employment Board, Welfare Fund, and the NRNA, and an emergency response mechanism should be set up without delay," Sharma said.

He stated that the NRNA is ready to work alongside the government or through its own mechanisms to take immediate action in rescue, safe transfer, and relief management.

Following the conflict escalation, the government had formed a task force to study the situation of Nepalis in labour destination countries, including West Asia, and Emergency Response Team to assist in rescue and relief operations. The ILO report also noted Nepal's efforts in crisis monitoring and coordination, implementing helplines, emergency response and other support systems activated in countries of destination, including consular assistance, crisis monitoring and coordination, and repatriation assistance.

Nepal also suspended the labour permit to West Asian nation for about six weeks, effective from March this year. More than 30,000 Nepali nationals have returned from the conflict-affected countries, of whom, 21,000 are from Qatar alone.

According to the government statistics, there are 1.72 million Nepali migrant workers in 13 countries in the region whose safety has troubled the government here.

Nepalis in Iran, Israel, Egypt, Oman, Qatar, Kuwait, Jordan, Bahrain, Saudi Arabia, the United Arab Emirates (UAE), Lebanon, Iraq and Cyprus were or likely to be affected by the Israel-Iran war, MoFA had said.

The largest number of Nepalis are in the UAE with a presence of 478,144, followed by Saudi Arabia at 383,865, Qatar at 357,000, Kuwait at 175,000, and Iraq at 30,000. There are 11 Nepali citizens in Iran and 500 in Egypt.

Published in The Rising Nepal daily on 20 May 2026.

Pak Embasy awards winners of essay, speech competition

Kathmandu, May 19

The Embassy of Pakistan in Kathmandu organised award ceremonies, in Kathmandu on Tuesday, for the 13^th Annual Ambassador of Pakistan Essay Writing Competition and the 9^th Annual Ambassador of Pakistan Speech Competition 2026.

The essay competition was conducted on 'Quaid-e-Azam Muhammad Ali Jinnah Mainstreaming the Demand for Pakistan through Constitutional Means”. Pratik Pokhrel from Viswa Niketan Secondary School secured first position. Dakshesh Ghimire from Chand Bagh School secured second position, while Nitin Thapa from Pranjali World School stood third.

The winners received certificates, cash prizes and special prizes. The essay competition was organised to commorate 150^th birth anniversary of Jinnah, the Embassy informed in a statement.

Likewise, the speech competition focused on the topic 'Will AI Engulf Libraries?'. Vishwakala Nepal from Reliance College secured first position in the competition while Tshring Tamang from National Law College stood second and Bipyum Chaulagain from St. Xavier College secured third position. Participants received certificates and prizes.

The embassy said that more than 50 students from higher secondary school to university level participated in the competitions. Competitors delivered speeches and submitted essays before a panel of judges.

Addressing the programme, Pakistan's Ambassador to Nepal Abrar H. Hashmi said the competitions aimed to encourage constitutional understanding, academic participation and engagement among Nepali students.

Published in The Rising Nepal daily on 20 May 2026.

CG Net launches Wi-Fi 6

Kathmandu, May 19

Internet service provider CG Net has officially introduced its next-generation Wi-Fi 6 internet service in Nepal, offering speeds of up to 400 Mbps.

The newly launched service is designed to meet the growing demand for faster and more reliable internet as online gaming, remote work, virtual learning, streaming services and smart home technologies, the company said in a statement.

According to it, the Wi-Fi 6 technology comes with several major improvements over previous-generation internet systems. The service is expected to provide download speeds of up to six gigabits per second, significantly lower latency and better performance when multiple devices are connected simultaneously.

The company said the technology can support more than 128 connected devices at once and deliver improved efficiency for 4K streaming, online gaming and cloud-based applications. This technology can lower the power consumption by up to 30 per cent for connected devices.

It further added that the new system has been designed particularly for large families, homes using several smart devices and small businesses requiring stable internet access. The upgraded technology also includes advanced security protocols and more efficient data transmission through OFDMA and 1024-QAM technology.

The company has also introduced new annual internet packages under the Wi-Fi 6 platform, including a 400 Mbps plan. The prices range from Rs. 14,499 for internet only to Rs. 18,907 for internet, IPTV and mesh router for outside the Kathmandu Valley. 

Published in The Rising Nepal daily on 20 May 2026.

Foreign Ministry puts diplomatic efforts to ensure fair hearing for Jha

Kathmandu, May 18

The Ministry of Foreign Affairs (MoFA) informed on Monday that continuous diplomatic efforts are being undertaken through all available channels to ensure a fair hearing for Amrit Jha, a Nepali citizen who was arrested in Iran on charges of illegal smuggling and transportation of goods in Qeshm Island.

According to the latest information received by the Ministry, the team formed to prepare the Expert Report in the case is in the process of submitting its report to the court.

The expert team was formed about a month ago, according to the direction issued by an Iranian court.

"As the case pending before the local Iranian court will be resolved in accordance with Iranian law, continuous diplomatic efforts are being undertaken through all available channels to ensure, among other things, a fair hearing for Jha," the MoFA informed in a statement.

Iranian authorities had arrested Nepali citizen Amrit Jha along with six other foreign nationals from Qeshm Island in January 2026, before the war broke out between Israel-USA and Iran. Currently, he is being held in custody for judicial remand in Bandar Abbas.

In the same statement, the MoFA expressed regret over the confusion and inconvenience caused by the public dissemination of informal information regarding Jha's release while the case remained under consideration in an Iranian court, while he was in custody.

This confusion was caused by information shared by Nepal's honorary consul for Iran Shahram Shantiaee, with Nepal's ambassador in Qatar Kumar Rai. Based on Shantiaee informed Rai on April 15 that a letter was issued for Jha's release, and he was free.

Ambassador Rai updated Foreign Secretary Amrit Bahadur Rai about the developments on Jha's release, as the matter has been turned into a great public concern here in Nepal.

Considering the difficult situation prevailing there, the immediate public concern regarding the Nepali citizen, the enquiries made by media outlets, and the fact that the matter had already reached Jha’s family, the Ministry issued a press statement the same day stating that informal information had been received regarding the release.

Foreign Minister Shisir Khanal also shared the information through social media.

But when the MoFA instructed the Embassy of Nepal in Doha to obtain written evidence of his release so that the process of his repatriation to Nepal could be initiated, the mission received an update that Jha had not yet been released, but the court had directed the preparation of an Expert Report in relation to the case.

 

FM Khanal seeks diaspora support in development

Meanwhile, FM Khanal invited the Nepali diaspora community to remain actively engaged as partners in building a prosperous and inclusive Nepal.

Launching a report 'Nepali Diaspora in Australia' as an event organsied by the Institute for Integrated Development Studies (IIDS) in Kathmandu on Monday, he said that the Nepali diaspora in Australia represents one of Nepal’s national strengths.

He noted that education remains a key pillar of Nepal-Australia relations and emphasised that they serve as an important soft-power bridge strengthening mutual goodwill, cultural understanding and multifaceted partnerships beyond remittance, the MoFA said in its post on X.

The programme was also attended by Australian Ambassador to Nepal Simon Ernst, Non-Resident Nepalis, the private sector and researchers. 

Published in The Rising Nepal daily on 19 May 2026.