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.

FNCCI wants upcoming budget to revive business confidence

Budget will uphold good governance: FM Dr. Wagle

 

Kathmandu, May 17

Through the budget of the upcoming Fiscal Year 2026/27, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has advised the Finance Ministry to revive declining business confidence, generate demand in the market and re-attract stalled investment.

Employment generation should also be the top priority and get required polity attention, the FNCCI informed in a statement.

Submitting its budget recommendations to Finance Minister Dr. Swarnim Wagle at the Ministry of Finance (MoF) on Sunday, the FNCCI suggested to introduce the upcoming budget in a manner that would bring about economic transformation.

Stating that the forthcoming budget is not merely an ordinary annual document but one arriving at a critical juncture in Nepal’s economic history, the FNCCI suggested a fundamental transformation of the current economic model.

Presenting the recommendations to FM Dr. Wagle, President Anjan Shrestha said that an economy based on remittance and imports could not ensure long-term prosperity, and that the private sector remained hopeful of a transformative budget.

“Frequent annual changes in tax policy have eroded investor confidence. The private sector has called for an end to the unstable practice of annual fiscal acts and the implementation of a single revenue code with clear interpretation, along with the formation of an autonomous Revenue Board," he said.

Shrestha further added that there must be a clear assurance that tax laws will not be applied retrospectively.

The country’s industrial production capacity is currently limited to 40 per cent, the construction industry has reached the most difficult period in its history, and the contribution of the private sector to gross fixed capital formation has declined from 28 per cent to 16 per cent over the past four years. In such a situation, the budget must revive the economy, said Shrestha.

The FNCCI also drew the government’s attention to the fact that while Nepal’s average economic growth rate over the past two decades has remained at only 4 per cent, tax growth has reached 11 per cent. Revenue as a proportion of GDP has exceeded 19 per cent, making Nepal one of the countries with the highest tax burdens in South Asia.

According to the FNCCI, high taxation has increased informal transactions, illegal trade and business migration.

Referring to Nepal’s graduation from a least developed country to a developing country, the FNCCI warned that Nepal risks losing preferential market access after graduation, while transport and financing costs could further weaken Nepali products. It therefore demanded a special and long-term integrated policy for export-oriented industries such as textiles, carpets, garments, pashmina and felt products.

In its recommendations, the FNCCI also proposed a legal provision allowing Nepali companies to invest a certain portion of export earnings abroad in order to expand at regional and international levels.

The FNCCI called for stronger control over smuggling through open borders and the immediate removal of distortions under SAFTA whereby finished goods are imported more cheaply than raw materials.

President Shrestha also drew the Finance Minister’s attention to the need to safeguard the business environment and address the criminalisation of entrepreneurship.

Responding to the recommendations, Finance Minister Dr. Wagle expressed commitment to introducing a budget that would uphold good governance, strengthen private sector development, encourage investment and support employment generation.

Clarifying that the government remains committed to moving forward with the private sector as its principal partner, he urged the FNCCI delegation to remain optimistic.

“The government is sensitive to the decline in private sector confidence and the weakening market demand. The upcoming budget will lay the foundation for transforming the economic model itself,” said Finance Minister Dr Wagle.

Regarding the government’s post-LDC priorities, FM Dr. Wagle said the government had taken the matter seriously. However, he stressed that even if there were proposals to delay the timeline, preparations for the post-graduation phase must continue.

Published in The Rising Nepal daily on 18 May 2026.

Minister Khanal calls for smooth supply flows

Kathmandu, May 16

Foreign Minister Shisir Khanal has said that disruptions in global energy and supply flows pose serious threats to poverty reduction, human security, and the achievement of the Sustainable Development Goals (SDGs), Nepali Mission to the United Nations said in a post on X.

In his virtual address at the ECOSOC Special Meeting themed 'Safeguarding Energy and Supply Flows: Supporting Global Development through International Cooperation' at UNHQ, New York on Friday, he highlighted the importance of engaging in diplomacy and dialogue to resolve differences.

According to him, such efforts are crucial for ensuring global peace, stability and peaceful coexistence, strengthening multilateralism and global cooperation anchored in solidarity, partnerships and international law including UN Charter.

FM Khanal also urged to scale up investment in resilient infrastructure, renewable energy, sustainable supply systems, and technological innovation and support the most vulnerable and countries in special situations, especially LDCs and LLDCs like Nepal through concessional financing, emergency liquidity support, and debt relief measures.

Published in The Rising Nepal daily on 17 May 2026.

SC issues order to treat people respectfully at customs points

Kathmandu, May 16

The Supreme Court (SC) has issued an interim order against the government that the law enforcement officials must behave and cause others to behave respectfully towards every individual while implementing the customs-related rules at the Nepal-India border points.

Issuing the order on Friday, joint bench of justice duo Hari Prasad Phuyal and Tek Prasad Dhungana directed the Prime Minister's Office, Ministry of Home Affairs, Ministry of Finance and Department of Customs to ensure that the law enforcement official's behaviour is not against the right to live with dignity as mentioned in the Constitution.

The Ministry of Finance had issued a notice a year ago to implement the provision to impose customs duty on goods worth above Rs. 100. The Customs Department had begun strictly enforcing the rule from April this year.

The petitioners, advocates Amitesh Pandit, Suyogya Singh, Prashant Bikram Shah and Akash Mahato from DJ Law Associates, had demanded an interim order directing not to immediately implement or cause the implementation of the provision.

However, the SC did not clearly say anything for or against the government's decision to impose customs duties on goods worth above Rs. 100 brought to Nepal from India via land routes.

According to the order, except for controlling the transportation of goods for commercial purposes or the criminal offence of smuggling, lawful import of medicinal items related to an individual's health, items of minimal necessity used in social relations, and minimal commodities purchased for the personal use of local residents of the border area should be respected.

But the SC said clearly that imposing customs duty is a sovereign right of the government (State).

It stated that the validity, relevance, and appropriateness of the limit of Rs. 100 specified by the MoF by publishing a notice in the Nepal Gazette exercising the power conferred by the law, will be considered during the full hearing of the petition.

In their petition, the advocates had demanded appropriate orders including mandamus and prohibition not to create any hindrance or obstruction in bringing daily and monthly food supplies through the border checkpoints, to grant full exemption on any obstruction or duty on goods carried while travelling for marriage or visiting relatives, and to implement strict monitoring for smugglers.

Similarly, the petitioners argued that while individuals travelling by air are granted exemptions to bring one mobile phone handset, 25 grams of gold, and even a 32-inch television, and while at the Chinese Tibetan border points, exemptions are granted to bring goods through the checkpoints simply by verifying citizenship, it is evident that the government has discriminated people residing at the southern border.

Stating that the century old relations between Nepal and India has transformed the specific border regions into a distinct kind of Semi-Integrated Socio-Economic Zone, the petition maintained that for the people, the market across the border is of their own village, the hospital across the border is the health post of their own neighbourhood, and the relatives across the border are members of their own household.

Published in The Rising Nepal daily on 17 May 2026.

Israel ready for technical Assistance to Nepal

Kathmandu, May 15

Vice President Ramsahay Prasad Yadav held a courtesy meeting with Israeli Ambassador to Nepal Shmulik Arie Bass at the Office of the Vice President on Friday.

During the meeting, they discussed bilateral relations, economic cooperation, labour migration, education and training, among other issues.

Vice President Yadav said that Nepal and Israel have maintained excellent relations based on friendship, goodwill, mutual understanding and cooperation since the establishment of diplomatic ties on 1 June 1960. He noted significant potential to expand cooperation in the areas of the economy, trade, tourism, and investment, expressing confidence that both countries could achieve mutual benefit by identifying and utilising these opportunities.

VP Yadav also stated that Nepal highly values Israel’s continued support in providing scholarships, vocational training and capacity-building programmes for Nepali students and professionals.

“Particularly, cooperation in agricultural technology, research and capacity development can play a transformative role in the modernisation of Nepal’s agricultural sector and in strengthening food security,” he said, further noting the immense potential for collaboration between universities, research institutions and innovation systems of the two countries.

Likewise, VP Yadav said Nepal is closely observing the evolving situation in West Asia and remains firmly committed to the principle of peaceful coexistence, while continuously supporting efforts aimed at promoting peace, stability and mutual understanding.

Ambassador Bass said that Israel is willing to assist Nepal in sectors such as agriculture, beekeeping and fisheries. He noted that many Nepalis have acquired skills through the “Learn and Earn” programme and are now working in various sectors in Nepal.

Bass also expressed Israel’s willingness to provide technical assistance to Nepal in various fields.

Published in The Rising Nepal daily on 16 May 2026.

NIA for protecting policyholders’ interest

Kathmandu, May 16

Chairperson of the Nepal Insurance Authority (NIA) Chandrakala Paudel said that policy reforms related to insurance, along with the protection of policyholders’ interests, timely settlement of claims, and the delivery of quality services, should be prioritised to promote development and to expand the reach of insurance.

Speaking at the 58^th anniversary of the NIA held in Lalitpur on Friday, she said that in the days ahead, the Authority would move forward sustainably by addressing shortcomings at the policy level while prioritising the protection of policyholders’ interests.

Institutional strengthening of insurers, risk-based supervision, the promotion of good governance, and digital transformation will also be the priority.

Paudel further noted that policy and institutional cooperation with policyholders, insurers and other concerned agencies and organisations had played a significant role in the development of the insurance sector.

“The NIA will move ahead in a new manner based on suggestions from all stakeholders,” she said.

Executive Director of the NIA, Sushil Dev Subedi, said that the insurance sector regulator remained committed to making the insurance sector more inclusive, digital, risk-aware and a partner in economic development.

According to him, the Authority had made regulation and inspection more effective to strengthen governance and discipline within the insurance sector. Subedi also said that the NIA had made significant progress this year in the areas of internal governance, institutional strengthening and capacity enhancement.

Published in The Rising Nepal daily on 17 May 2026.

NCC to organise conclave on alternative medicine

Kathmandu, May 13

The Nepal Chamber of Commerce (NCC) is set to organise the Nepal edition of the International Ayush Conclave 4.0 on June  12-14 this year in Kathmandu .

The NCC is organising the event in with collaboration with Council for Integrative Vaidya Innovation and Collaboration (CIVIC) of India.

Dr. M. M. Quraishi, a representative of the organisation said that the event will feature scientific sessions, research-based presentation and exchange of international knowledge.

According to him, individuals and institutions contributing to the Ayush sector (traditional and alternative healthcare system) will be honored with various awards.

Additionally, an attempt will be made to register a record in the Legends World Record by conducting the largest clinical diagnosis session by Ayush practitioners on a single platform.

The NCC said that the conclave will bring together various Ayush systems, including Ayurveda, Yoga, Naturopathy, Unani, Siddha and Homeopathy on a single platform. Participants will also receive insights into the use of Artificial Intelligence (AI) and modern technologies in healthcare practices.

The event is being organised with the objective of promoting the Ayush sector at the international level.

The main aim of the conclave is to provide global recognition to Ayush systems and to familiarise practitioners with future-oriented technologies.

According to Rastrabhushan Chakubji, Chairman of the Trade Fair Committee of the NCC, the conclave is expected to witness participation of more than 200 delegates from over 10 countries, including more than 20 states of India.

Same type of Ayush conclave has been successfully conducted in Agra, Goa, and Jaipur in tje past.

Published in The Rising Nepal daily on 14 May 2026.

Ending The Sway Of Middlemen

 

Nepal's political development, including changes of all scales, always culminated in power-sharing among the major political forces and seeking support from the existing political and economic elite. They became so apathetic to the public issues that reports of all the review, reform and probe commissions were buried under massive political interest, and sometimes a collusion among the politicians, businesspersons and criminals didn't allow it to come out. 

Public expectations for basic services like obtaining a passport, driving licence and National Identity Card (NID), reaching other locations on time, and having good health and education services were never addressed. Political 'bhagbanda' became a culture, and a few individuals played musical chairs with the lucrative posts. To the great surprise of the public, the same individual could be an expert in energy, industry and even sports. For political leaders, there were no experts beyond their coteries. While most of the top government posts in public bodies were allotted at the discretion of the prime minister or minister, a few competitions made to appoint chiefs of public corporations were 'a farce'. The results used to be fixed, but the entire process would be followed to appoint their henchmen. 

A few years ago, the middlemen were ruling the application process for passports, labour permits, and driving licences. People paid up to Rs. 10,000 to get their passport application filled out by an agency. Neither the government nor the anti-graft bodies and activists raised the issue of data protection, although there were concerns about the technical efficiency and exorbitant fees charged by the middlemen. 

Missed opportunities 

The country missed multiple opportunities to set a basis for good governance with the adoption of Information and Communication Technology (ICT). The first was after the revolution of 1990. But the Nepali Congress' government was more focused on economic liberalisation. The second came with the culmination of the Maoists' armed war. The then Maoist-led 'revolutionary' government failed to meet the public expectations because, rather than implementing sweeping reforms in governance, administration and procedures, it opted for the way of 'consensual governance', which was safer and appeared as a solution to stay in power for a long time. It is equally important that it lacked the clear majority to implement its policy and programmes single-handedly. 

The third chance dawned with the almost two-thirds majority government formed in 2018 by the Nepal Communist Party – created with the unification of the CPN (UML) and the CPN (Maoist Centre). The government formed after the country was ushered into federalism created foundations for the new political structure and initiated long-term development projects. But good governance took the back seat. The prime minister and ministers pledged rapid and massive development both in terms of physical and social aspects. However, delivery remained poor against their promises. That was the period when youths were struggling to successfully submit their application for a passport. 

The fourth occasion for governance reform is now. The almost two-thirds majority government of the Rastriya Swatantra Party (RSP) is also comparatively less meddled with by the power-brokers and national-scale middlemen. The government’s initial actions against potentially corrupt individuals and middlemen showed early signs of positive progress.

Faceless, paperless service

Good governance in public service, infrastructure development, delivery of health services, and quality of utility services is critical for the overall development of any society. For this, all the agencies dealing with the public, such as police, land, revenue, administration and local bodies, should assure prompt service at a reasonable fee. The first step towards this development is creating a faceless and paperless system for every service delivery. Critical public agencies should be fully equipped with information technology and skilled human resources. 

Likewise, for the activities like public procurement of goods and services, anti-graft bodies should enhance their surveillance. However, it is also equally important to have the right people in such bodies like the Commission for the Investigation of Abuse of Authority (CIAA), the National Vigilance Centre (NVC), and the Public Procurement Monitoring Office (PPMO). The government has already expressed commitment that the structure of investigative and regulatory bodies and institutions will be reformed and strengthened. 

The RSP has pledged in its election manifesto that by 2031, public services will be shifted to online platforms, while a national database linking to the National ID cards will be created to streamline social security and policy implementation. By then, the compulsion to visit offices and meet employees to receive government services will be brought to an end. 

Indicator system 

In its national commitment made public on April 13, the government said service-providing agencies will be linked to a good governance indicator system, and a system will be developed for service recipients to evaluate offices. Likewise, while providing impartial, swift, and high-quality services, all types of corruption—including syndicates, irregularities, delays, and malpractice within the public service delivery system—will be controlled, pledged the government.

The government has indicated that it would move ahead in governance by incorporating the election agenda of the major political parties. The government said the assets of individuals holding public office after 1990 will be made transparent and investigated. This agenda has been propping up intermittently in national political discourse, and various political parties have pledged to implement this, but there is no progress so far. The RSP has said in its manifesto that it will begin the move to good governance with an investigation of the assets of the high-ranking officials who held the public posts since 1990. Illegally acquired assets will be confiscated and nationalised. 

Alongside the institutional strengthening of constitutional bodies, the definition of policy decisions made by the Council of Ministers will be clarified. Laws concerning the protection and encouragement of whistleblowers, as well as laws regarding conflicts of interest, will be formulated.  Judges of all courts will be appointed on the basis of meritocracy through a competitive system. 

Common tendencies like rent-seeking, policy capture, cartels and artificial shortages are to be controlled to ensure fair competition, entrepreneurship and a business-friendly environment. The election manifesto of the RSP said the government is set to introduce predictable tax policies (at least 10-year stability) and simplify procedures through paperless digital systems, improving investor confidence.

Similarly, the government is set to implement development projects in a target-oriented work style (mission mode). To ensure projects are completed qualitatively and on time, it will make arrangements not to transfer project heads and staff until the project is finished. 

However, the success of the government will rest on its capacity to generate and mobilise meagre resources that are insufficient even to meet the administrative operation cost. Although the government has initiated reforms in public bodies with the removal of the politically appointed officeholders, it is critical to overhaul the entire system that has long been inefficient and cumbersome to achieve the goals of good governance. 

Published in The Rising Nepal daily's Friday Supplement on 7 May 2026.           

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.