EU willing to work with Nepal for air safety

Kathmandu, June 24

The European Union (EU) said on Tuesday that it wants to continue working with Nepal to help the latter in achieving air safety.

“The EU and its Member States are keen to continue working side by side with the Government of Nepal to help achieve the level of safety that Nepali citizens and travellers deserve,” Chargé d’affaires at the Delegation of the EU to Nepal Thomas Millar said while speaking at the third module of the Regional Aviation Safety Programme (RASP) being held in Kathmandu from Tuesday.

“Both the EU and its Member States are already providing technical assistance and have worked closely with all stakeholders to support progress,” he said.

The three-day event, which kicked off on Tuesday, is jointly organised by the Civil Aviation Authority of Nepal (CAAN) and ATR.

The module will focus on ‘Crew Training and Operational Standards’, addressing the human and procedural dimensions of flight operations, including decision-making, operational resilience and fatigue management, the Delegation of the EU informed in a statement.

Noting that air safety is a priority for Nepal, Millar said, “We have taken note of the recent remarks by the Finance Minister in his budget speech, aiming to address the concerns of the European Commission (EC). We also appreciate the recent submission of the full package concerning the implementation of the Corrective Action Plan.”

According to him, officials in the Directorate General for Mobility and Transport (DG MOVE), the EC department responsible for developing sustainable, safe and efficient transport and mobility policies in the EU, will review the Corrective Action Plan in the coming months.

Nepal has been on the EU’s air safety concern list since 2013, which bars Nepali airlines from flying to, from and within the EU. This has seriously impacted Nepal’s tourism and international trade since then.

Following the launch of a series of aviation cooperation activities earlier this year, the EU has continued its partnership with Nepal and South Asia through two new regional initiatives taking place in Kathmandu under the EU–South Asia Aviation Partnership Project (EU–South Asia APP).

Over two weeks, aviation authorities, airlines, industry representatives and technical experts from across South Asia are gathering in Nepal to exchange experience, strengthen professional networks and discuss practical approaches to enhancing aviation safety.

The EU Delegation said that by bringing together regulators, operators and industry representatives, the programme aims to foster practical and sustainable approaches to aviation safety.

The second activity, which takes place from 29 June to 2 July, will also host a Regulatory Updates in Continuing Airworthiness Workshop under the South Asia Regional Initiative (SARI). The workshop will examine recent developments in EU Aviation Safety Agency (EASA) regulations and modern oversight concepts, supporting authorities and industry in implementing the evolving international requirements.

Together, these activities demonstrate the evolution of the EU–South Asia Aviation Partnership Project from individual technical exchanges towards a more structured and sustained programme of regional cooperation.

“They also reinforce Nepal's growing role as a platform for aviation dialogue in South Asia and illustrate the European Union's commitment to supporting aviation stakeholders through practical, demand-driven and long-term partnerships,” read the statement.

Nepal-Spain business forum organised in Madrid

Kathmandu, June 23

Aiming to bridge the gap between investors and businesspersons from Spain and the government and the private sector of Nepal, the Embassy of Nepal in Madrid organised the ´Nepal-Spain Business Forum 2026´ on Monday.

Speaking at the event, Chargé d´affaires a.i. Purak Adhikari introduced Nepal´s industries as generational enterprises operating on ethically sourced materials using indigenous technology.

Navin Raj Sharma, acting Executive Director of the Trade and Export Promotion Centre, presented the statistics of Nepal-Spain textile trade while highlighting the opportunities of various Nepali textile articles in the Spanish market. He also presented a range of Nepali textile and garment articles deemed most promising for Spanish consumers.

Likewise, Govinda Ghimire, president of the Federation of Export Entrepreneurs Nepal (FEEN), and Deva Nanda Sarawagi, vice president of FEEN, emphasised the competitive advantages of Nepali textile and jewellery products, particularly those made from premium natural fibres such as Chyangra wool, Himalayan sheep wool, hemp, and nettle.

They also highlighted the growing demand for Nepali handmade silver jewellery, prayer beads, and traditional ornaments that have strong appeal in niche international markets.

Similarly, Pashupati Dev Pandey, President of the Garment Association of Nepal, outlined the recent growth of Nepal’s garment sector, noting the positive impact of legal and policy reforms.

Addressing the forum, Luis Rodriguez, Deputy Director of International Relations at the Chamber of Commerce of Spain, informed that Spanish consumers are increasingly receptive to unique international products and expressed confidence that stronger business-to-business partnerships would further enhance Nepal-Spain commercial relations.

NICCI, GITA sign MoU to promote trade partnership

Kathmandu, June 23

The Nepal-India Chamber of Commerce and Industry (NICCI) has signed a Memorandum of Understanding (MoU) with Global Investment and Trade Advisors LLP (GITA), India, to promote trade, investment, institutional partnerships, and economic cooperation between Nepal and India.

“It is a shared commitment to strengthening cross-border business linkages, facilitating knowledge exchange, and creating new opportunities for investors and enterprises in both countries,” NICCI said in a statement.

Under the agreement, NICCI and GITA will work together on a range of initiatives, including business delegations, investment outreach programmes, sectoral engagements, policy dialogues, roadshows, and stakeholder consultations.

According to NICCI, the collaboration is designed to foster structured engagement between businesses, investors, chambers of commerce, government agencies, and development institutions, while encouraging greater participation in emerging economic opportunities across key sectors.

The MoU was signed by Marshal Rathour, Director at NICCI, and Priya Rawat, Managing Partner of GITA. Speaking on the occasion, representatives from both organisations emphasised the importance of stronger institutional cooperation in advancing Nepal-India economic relations. 

Published in The Rising Nepal daily on 24 June 2026.   

Govt. set to formulate law for trade secrets

Kathmandu, June 21

The government is set to formulate laws to govern trade secrets and geographical indications so that the intellectual property regime in the country can be strengthened.

Publishing the details of the activities for the upcoming Fiscal Year 2026/27, which will begin on July 17, the Ministry of Industry, Commerce and Supplies (MoICS) informed that it will be implemented under the Nepal Trade Integration Strategy (NTIS).

The Department of Industry will conduct interaction programmes on industrial property across seven provinces. It is expected to understand the status of awareness about industrial property and demands from the private sector for the same.  

Currently, copyrights in Nepal are governed by the Copyright Act 2002, which covers literary creations in literature, music, art, computer programmes and dramatic works. Likewise, trademarks, patents and industrial designs are governed by the Patent, Design and Trademark Act, 1965. It covers words, symbols, or logos of businesses.

The private sector has been demanding an update to the Trademark Act, incorporating the latest needs of businesses and entrepreneurs.

The Ministry is also set to conduct informative training for producers, traders and exporters on the existing certification for goods, geographical indications, sustainability, product standards and the implementation methods for voluntary standards.

Likewise, procedures will be formulated, and institutional capacity will be developed for safeguards, anti-dumping and countervailing legislation.

The MoICS also announced a plan for intergenerational transmission of traditional handicraft skills. “Skill development training will be conducted in a cost-sharing partnership with representative associations and organisations of the private sector to produce exportable goods aligned with international market demand through documentation, transfer, and intergenerational transmission of traditional handicraft skills,” read the document.

Likewise, warehouses for the storage of tea and large cardamom (alainchi) will be constructed in a public-private-partnership model, sharing cost with entrepreneurs from the respective sectors.

A programme will be designed and executed for the technical facilitation and infrastructure development to enhance and upgrade small-scale industries to meet food safety standards.

The Industry Ministry is also set to review the achievements of the technology transfer agreements made with various stakeholders and governments in the past. 

Published in The Rising Nepal daily on 22 June 2026.   

Govt. serious about resolving tea export barriers, says FM Khanal

Kathmandu, June 19:  

Minister for Foreign Affairs Shishir Khanal said that the government is seriously concerned about the obstacles emerged in Nepal’s tea exports and that diplomatic dialogue is ongoing with the Indian side on the matter.

“We have already initiated discussions with Indian authorities to resolve the problems seen in Nepal’s tea exports. Concrete diplomatic efforts are being made to find a practical solution to the issue,” he said with the delegation of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) at the Ministry of Foreign Affairs (MoFA) on Thursday.

According to information received from the Indian side, a resolution is expected soon, he said while noting that discussions are being held with the Indian side for long-term solutions to similar problems affecting the export of tea and other goods.

The FNCCI delegation, led by its president Anjan Shrestha, had urged FM Khanal to take diplomatic initiatives to resolve the existing barriers and complexities in tea exports to India. It drew the attention of the minister to the difficulties faced by Nepal’s tea industry due to new arrangements introduced by the Indian Tea Board.

The FNCCI, in a statement, said on Friday that the recently issued Standard Operating Procedure (SOP) by the Tea Board of India has created further complications for Nepal’s tea exports. It stressed that there are no quality issues with Nepali tea and called for the matter to be raised strongly in bilateral trade mechanisms with the Indian side.

Shrestha said that as the tea sector, which has an annual turnover of around Rs. 12 billion to 14 billion, is in crisis, it would affect the wider economy and the livelihoods of millions. He urged the minister to resolve the issue as soon as possible.

The tensions began with TBI implementing mandatory laboratory testing of Nepal’s all tea consignments from May 1 this year. For the first three weeks, Indian authorities conducted random sampling, and the situation remained relaxed.

But after that, authorities in India collected samples of each consignment and sent them for testing, but no lab reports were issued, leaving the product stranded in Kolkata.

Exhibiting protests, 83 tea factories in Ilam and Jhapa halted operations on Thursday. Likewise, a delegation of the Nepal Tea Producers Association came to Kathmandu to find a solution with the government. More than 1,300 tonnes of tea produced in Nepal is stuck in the warehouses in Nepal and India.

According to the Association, this is a recurring problem and needs to be resolved once and for all.

The FNCCI also emphasised the need to establish an internationally accredited laboratory in Nepal for long-term solutions.

Deputy leader of the Rastriya Swatantra Party parliamentary party Ganesh Parajuli, and Chair of the Industry Committee at the Parliament Rahbar Ansari, who were present on the occasion, said that both short-term and long-term solutions should be sought for such problems.

Likewise, Commerce Secretary Krishna Bahadur Rawat said that the Ministry of Industry, Commerce and Supplies is also engaging through its channels to facilitate the process and expressed optimism that a positive outcome would be reached soon.

 

60,000 workers affected

According to the Nepal Freight Forwarders Association (NEFFA), with around 120 tea industries nationwide, thousands of farmers, and 50,000 to 60,000 workers directly dependent on the sector, the disruption has negatively impacted Nepal’s export trade, foreign currency earnings, and the overall economy.

Statistics from the National Tea and Coffee Development Board showed that Nepal produced 26,983 tonnes of tea, including orthodox, green tea, and other varieties in FY 2024/25.

Expressing serious concern over the recent complications in tea exports, one of Nepal’s key export commodities, and the procedural barriers seen in the Indian market, it said the situation has led to the closure of tea industries, particularly in eastern Nepal, and affected hundreds of tea gardens.

“Processed tea exported from Nepal to India has been held in warehouses for a long time on the pretext of laboratory testing and various technical procedures, disrupting production, distribution, and the entire export chain of the Nepali tea industry,” NEFFA said in a statement on Friday.

The Association noted that a significant share of Nepal’s total tea exports depends on the Indian market, and such barriers have adversely affected not only exporters and entrepreneurs but also the broader economy.

It urged the government to prioritise the issue and initiate immediate diplomatic efforts, including high-level dialogue with relevant Indian authorities, to remove procedural and technical barriers as soon as possible, ensuring smooth, simple, and uninterrupted trade.

Published in The Rising Nepal daily on 20 June 2026.   

AI training for educators

Kathmandu, June 19

The Computer Association Nepal (CAN Federation) and the Higher Institutions and Secondary Schools Association Nepal (HISAN) signed a Memorandum of Understanding (MoU) to implement digital transformation initiatives in the education sector.

The two organisations will jointly conduct a nationwide ‘AI for Educators’ workshop series across all seven provinces, the CAN Federation informed in a statement on Friday.

The programme aims to bridge gaps between educational governance and local technology development, focusing on strengthening teachers’ capacity in artificial intelligence (AI), digital safety, and emerging technologies.

According to the agreement, the initiative prioritises three areas - nationwide teacher capacity building through hands-on AI training, strengthening ICT infrastructure including secure communication systems, data automation frameworks and cloud ecosystem assessment in HISAN member institutions, and curriculum standardisation incorporating prompt engineering, AI-based content development, digital safety and academic integrity.

CAN Federation will mobilise its provincial and district chapters for implementation, while HISAN will coordinate among member colleges and manage training centres, including physical infrastructure, computer labs and internet facilities, read the statement.

The concept and architecture of the ‘AI for Educators’ framework have been developed by Chiranjibi Adhikari, Acting President of CAN Federation.

Speaking at the signing ceremony, Adhikari said digital transformation begins in classrooms through teacher training in modern skills such as AI, data science and digital security.

Yuvaraj Sharma, HISAN president, said the partnership would help build a digital ecosystem to enable students and teachers to compete in global markets.

The MoU was signed by Adhikari and Sharma in the presence of officials, including CAN Federation General Secretary Chandra Bilas Bhurtel and HISAN representatives.

Both organisations stated that implementation will begin in the upcoming phase with provincial coordination and gradual expansion of training activities across member institutions nationwide in Nepal under an agreed framework of collaboration as per the joint agreement plan.

Published in The Rising Nepal daily on 20 June 2026.   

Nepal to receive $115m ADB loan for water supply, sewerage management

 Kathmandu, June 19

The Asian Development Bank (ADB) has approved a US$115 million (Rs. 17.30 billion) concessional loan to improve water supply and sanitation services and strengthen institutional capacities in rapidly growing municipalities across Nepal.

The fund will be used to implement the Integrated Water Supply and Sewerage Management (Sector) Project, the ADB informed in a statement on Friday, adding that the project is expected to benefit more than 850,000 people in 13 municipalities.

The project will expand water supply coverage by constructing about 64 tube wells, treatment facilities with a combined capacity of about 60 million liters per day, and approximately 2,125 km of water distribution network. Around 72,000 households, including vulnerable and women-headed households, will receive pressurised piped water connections.

Sanitation services will also be expanded and improved in selected municipalities through upgraded sewerage and drainage networks, new or rehabilitated wastewater treatment plants, and faecal sludge treatment facilities. More than 120,000 properties are expected to gain access to enhanced sanitation services.

“The project integrates adaptation and mitigation measures, supported by US$75.27 million in dedicated funding, and is expected to reduce greenhouse gas emissions by more than 22,000 tonnes of carbon dioxide equivalent annually,” read the statement.

The ADB’s financing for the project is complemented by US$28.8 million (Rs. 4.33 billion) in government counterpart funding. The Ministry of Infrastructure Development will implement the project, with support from the Department of Water Supply and Sewerage Management and participating municipalities. The project, with a total value of $143.8 million (Rs. 21.64 billion), is scheduled for completion by June 2032.

According to ADB Country Director for Nepal Arnaud Cauchois, this project will expand access to safe and reliable water and sanitation services and strengthen resilience to natural hazards and disaster risks. 

Published in The Rising Nepal daily on 20 June 2026.   

Budget outlines series of business, investment reforms

Women entrepreneurs, startups get focus

 

Kathmandu, May 30

Through the budget of the next Fiscal Year 2026/27, the government has expressed its 'full commitment' to industrial innovation.

It has made a plan to invite the private sector to develop and operate industrial areas like Motipur and Nayurdhap in line with the policy of expanding high-quality industrial infrastructure.

In the Panchkhal Special Economic Zone (SEZ), priority will be given to women entrepreneurs. Further concessions will be offered on loan disbursements to women entrepreneurs. "We will make arrangements for a 'Special Economic Administration Zone' where all decisions regarding tax, customs, import, export and investment will be made under a single roof," said Finance Minister Dr. Swarnim Wagle while presenting the budget at the joint session of the Federal Parliament on Friday.

To enhance the competitiveness of productive industries, the government plans to review the demand charge for electricity and provide discounts on electricity tariffs. Industrialists will be able to mortgage structures built on land provided in industrial areas, SEZs, or on lease, for banking purposes.

A plan is also announced to encourage the expansion and growth of industries and businesses that have been unable to operate at full capacity due to lack of capital, by providing 'Business Revival Loans'.

Likewise, the government is set to implement the 'Investment Express' concept by introducing an automated route system within the next three months.

"We will make arrangements for integrated services covering everything from company and industry registration, financial services, tax system participation, and visa applications, including provisions for information access, compliance reporting, and risk-based auditing," read the budget.

A legal provision will be made so that projects approved by the Investment Board do not require further approval from other agencies. Investment visas will be provided for conducting research and studies related to investment in approved projects, and investment and profit repatriation will be facilitated by simplifying share transfer, tax clearance, asset valuation, loan repayment, dividend distribution, and liquidation processes.

 

Expansion of labour-intensive industry

To develop and expand labour-intensive industries with export potential, such as agro-processing, tourism services, and light manufacturing, model Employment-Linked Production Zones will be operated.

A sewage system with treatment plants will be operated in collaboration with the government and the private sector in industrial areas and corridors, using clean energy-based technologies.

Concessional loan facilities will be provided to replace traditional boilers in industrial establishments with electric boilers. An allocation of Rs. 220 million is made to convert 100 industries to electric or bio-briquette-based boilers.

Rs. 650 million is earmarked for industrial infrastructure development, and Rs. 500 million for the design, construction, and maintenance of industrial and mining access roads used by heavy vehicles, with special standards.

The budget also announced to establish a Mining and Minerals Authority for the comprehensive regulation and management of the extraction, production, supply, and use of mineral and construction materials.

"We will expedite the necessary processes for the commercial production of petroleum in Dailekh. We will proceed to reduce the Government of Nepal's share in the Dhaubadi Iron Industry and operate it under a public-private partnership model," said FM Dr. Wagle.

 

Customs duties lowered to seven tiers

The finance minister reduced customs duties on 273 types of raw materials, ensuring that the tariff on industrial raw materials is at least one level lower than that on finished goods. He also limited the existing eleven tiers of customs duties to just seven.

The budget also announced to draft, replace, or amend dozens of acts, regulations, procedures, and directives for investment promotion, economic reforms and smooth delivery of services. A Bill to amend related acts will be presented in Parliament to immediately repeal the 15 laws announced earlier.

Similarly, the government announced to amend company law to facilitate the process of dissolving companies, while ensuring clarity on issues such as conflicts of interest and disclosure of information.

It will enter into foreign investment protection and double taxation avoidance agreements with more countries. "We will amend the Insolvency Act, 2063, to resolve financial problems of consumers as well as micro, small, and medium-sized enterprises. To promote investment, we will draft a limited liability partnership law, which will encourage angel investment to be directed into venture capital and private equity funds," said Dr. Wagle.

 

Simplifying provisions to invest abroad

The government has announced plans to simplify the provisions allowing Nepali citizens to invest abroad. Through amendments to the Industrial Enterprises Act, a new provision will be introduced requiring industries only to notify the Department of Industry regarding matters such as capacity expansion, change of ownership, and capital increases.

Similarly, amendments to the Foreign Investment and Technology Transfer Act will remove the requirement for prior approval from Nepal Rastra Bank for the repatriation of investment, with notification to suffice. Convertible instruments, project-related funding, and other hybrid instruments will be included within the scope of foreign investment.

The requirement for prior approval in the automatic approval process for foreign investment will also be removed. Furthermore, procedures for sending service fees, royalties, and technology-related payments abroad are to be simplified.

Likewise, FM Dr. Wagle announced that legal provisions for the recovery of loans will be made. A law on the protection of intellectual property will be drafted shortly. By analysing past overall economic activities, arrangements will be made to provide credit based on the creditworthiness of individuals and businesses. A separate tribunal is to be established for the speedy resolution of commercial disputes, and the Conciliation Act will also be improved.

To ensure financial access for small and medium-sized industrialists, loans will be guaranteed through a 'first loss recovery' mechanism.

Dr. Wagle also announced that the start-up operating system will be strengthened by tailoring start-ups to identification, skills, market access, and financial inclusion, through profit-linked tax concessions, preferential access to public procurement, digital registration, and regulatory facilitation.

Published in The Rising Nepal daily on 31 May 2026.   

SBAN welcomes budget

Kathmandu, May 30

Nepal Stock Brokers Association (SBAN) has reacted positively to the budget for Fiscal Year 2026/27.

The brokerage community has interpreted the announcements concerning capital market reforms, a technology-friendly trading system, attracting investment from non-resident Nepalis, and the introduction of modern financial instruments as historic and far-sighted steps, it said in a statement.

President of SBAN Sagar Dhakal said that the budget will make a significant contribution to reforming Nepal's capital market and creating an investment-friendly environment.

"This year's budget appears to recognise Nepal's capital market not merely as a medium for share trading, but as a partner in the development of the national economy. It is extremely positive that the government has prioritised capital market reforms and is emphasising modern financial instruments, investor protection, and market expansion," he said.

The budget has announced the restructuring of the Nepal Stock Exchange (NEPSE), and the phased implementation of intra-day trading, short selling, and derivative instruments.

Dhakal also regarded the budget's announcement to amend legal provisions to enable non-resident Nepalis to participate in the secondary market as a highly significant step.

"If we can attract the capital, experience, and trust of Nepalis living around the world into Nepal's capital market, the size, depth, and stability of the market will increase significantly. The participation of non-resident Nepalis will also strengthen a long-term investment culture," he said.

SBAN noted that the decision to make the capital gains tax applicable to the sale of shares of listed companies the final tax would remove tax-related uncertainty for investors.

According to it, transparency, governance, and regulatory capacity are essential for maintaining the credibility of the market. The government's firm policy against irregular activities will further increase the confidence of genuine investors.

Published in The Rising Nepal daily on 31 May 2026.   

Finance Minister Dr. Wagle announces Rs. 2124 bn budget

Economic growth target 7%, Inflation to be contained at 6%

 

Kathmandu, May 29

With an aspiration to achieve 7 per cent economic growth, Finance Minister Dr. Swarnim Wagle has announced a budget of Rs. 2124.34 billion for the next Fiscal Yeat 2026/27.

He has earmarked Rs. 1270.58 billion for recurrent expenditure, Rs. 431.10 billion for capital expenditure and Rs. 422.64 billion for financial arrangements. These allocations make up 59.8 per cent, 20.3 per cent and 19.9 per cent in the total budget, respectively.

"This expenditure estimate is 25.2 per cent higher than the revised estimate of the current FY 2025/26," FM Dr. Wagle said while presenting the budget at the joint session of the Federal Parliament on Friday evening.

During the half-yearly review of the budget, then finance minister Rameshore Prasad Khanal had slashed the size of budget by 14.04 per cent to Rs. 1688.32 billion.

For this year, then finance minister Bishnu Prasad Paudel had unveiled a budget of Rs. 1964.11 billion with Rs. 1180.98 billion (60.1 per cent) allocated to recurrent, Rs. 407.89 billion (20.8 per cent) to capital and Rs. 375.24 billion (19.1 per cent) to financing management. Last year's budget size was 18.2 per cent larger than the revised estimates.

Earlier, in FY 2024/25, the budget size was Rs. 1860.40 billion. 

 

A deficit of Rs. 657 billion

Next year's budget will have a deficit of Rs. 657.29 billion.

According to Finance Minister Dr. Wagle, the government has set a revenue target of Rs. 1405.31 billion for the next year. The remaining budget will be covered with Rs. 61.74 billion from foreign grants, Rs. 247.28 billion from foreign loans and Rs. 410 billion from domestic borrowing. "As Rs. 245.89 billion in principal of domestic loans will be repaid in the upcoming fiscal year, net domestic borrowing will amount to only Rs. 164.11 billion," read the budget document.

As per the suggestions of the National Natural Resources and Fiscal Commission, Dr. Wagle has made arrangements to provide fiscal equalisation grants of Rs. 61.50 billion to the provinces and Rs. 90.20 billion to local governments for the upcoming year.

He said that complementary grants of Rs. 4.60 billion will be provided to provinces and Rs. 893 billion to local governments for implementing infrastructure projects. Likewise, special grants of Rs. 3.82 billion has been earmarked for provinces and Rs. 9.40 billion for local governments. For the implementation of federal government projects, the budget has allocated conditional grants of Rs. 39.72 billion to provinces and Rs. 206.8 billion to local governments.

Dr. Wagle estimated that a total of Rs. 175 billion will be transferred to provinces and local governments through revenue sharing. In the upcoming fiscal year, it is projected that over Rs. 600 billion will be mobilised in provinces and local governments through revenue sharing (including royalties) and fiscal transfers.

"As Finance Minister, I have taken this on not merely as a constitutional formality, but as a duty to transform the character of the state, the culture of governance, and the nature of the economy," said the Finance Minister, adding that the budget will serve as a policy document to meet expectations regarding production-oriented economy, international prestige and technology-driven change.

According to him, the need of the hour is to put an end to policy confusion, delays, institutional capture, and the exploitation of state resources, and to build a results-oriented governance system.

He said that the government is committed to launching an aggressive series of operational improvements to transform the pace and momentum of capital expenditure.

It will work in 'mission mode' to complete projects within the specified cost and on time, by improving procurement processes, ensuring flexibility in resource management (including fund reallocation), mobilising alternative finance, and guaranteeing stability in the tenure of project heads.

Dr. Wagle announced to formulate a sunset law relating to development projects within the current fiscal year and present it to the parliament. "We will make arrangements to track mobilisation advances, ensuring such funds are spent only on the relevant project. An initial pipeline of infrastructure projects that can be built under the hybrid annuity model will be ready within three months," he said.

The budget also pledged to address the difficulties faced by construction contractors as a result of price hikes in fuel, bitumen and other construction materials caused by the conflict in the Middle East.

FM Dr. Wagle has exhibited ‘cautions’ to focus the capital expenditure to a few priority sectors and large infrastructure projects that will promote growth and further development. Small projects and piecemeal allocations have been discouraged in the budget.

 

Salaries raised

FM Dr. Wagle increased the starting salary of government employees by 10 per cent while maintaining the existing dearness allowance. Likewise, to introduce a performance-based pay system, he has made a provision for a monthly incentive allowance equivalent to 10 per cent of the new salary scale. This will result in a net increase of approximately 21 per cent in the current remuneration, raising the minimum remuneration (including grade) to around Rs. 40,000, and beyond Rs. 100,000 at the upper level.

The new salary scale will come into effect from mid-July, beginning of the new FY 2026/27.

Stating that the salaries of civil servants have not been increased for the past four years, during which time the consumer price index-based inflation has risen by 17.3 per cent, Dr. Wagle increased the salary.

 

Execution challenges

Meanwhile, the budget that is augmented to about one-third of the Gross Domestic Product (GDP) of the country which is expected to reach Rs. 6,609 billion by the end of this fiscal (mid-July this year) comes with mobilisation challenges. The leaders of the opposition parties termed the budget 'ambitious' and pointed to the challenges of its implementation.

Likewise, the government has targeted to contain inflation at a maximum of 6 per cent.

Former finance minister Janardan Sharma said that the budget is positive and optimistic and welcomed the policy and legal reforms announced. In his social media post, he said that the focus on digital development and priority to Sudurpaschim, Karnali and Madhes provinces as well as education and health are highly positive steps.

However, former minister and CPN-UML Lawmaker Padma Kumari Aryal said that the budget has inherent execution challenges. Talking to media persons after the budget announcement, she said that the programmes announced through the budget lack sufficient allocation and execution assurance.

Likewise, Rastriya Prajatantra Party's lawmaker Khusbu Oli also termed the budget ambitious and said it lacked specific plans and programmes to increase the income of people.

 

 

'Growth poles and Quads'

FM Dr. Wagle announced to implement an integrated plan of policy and physical infrastructure to develop such areas as 'growth poles and quads'. This is said to be achieved by increasing investment in the comprehensive regional development of rural and peri-urban areas that have the best potential for economic growth.

Taking the 122,000-hectare command area to be irrigated by the Sunkoshi Marin Diversion as a base, and completing the remaining work on the Postal and East-West Highways, a Mid-Madhesh Quadrangle for agriculture and industry is planned.

Similarly, arrangements will be made to promote medicinal herbs, hydropower, tourism and mining-related activities in the 'Karnali Quadrangle' comprising the Mid-Hill (Pushpalal) Highway, Karnali Highway, Bheri Corridor, and the route from Rara via Jumla to Phoksundo.

The budget announced to complete Butwal-Narayangadh and Mugling-Damauli-Pokhara sections of the East-West Highway expeditiously. "We will begin the international-level transformation of Siddhartha Highway and develop the origin area of the Kaligandaki civilisation into a 'Gandaki Quadrangle' focused on pilgrimage and clean enterprises and businesses," read the budget.

It announced to develop the 'Shaligram Path' by integrating Trivenidham, Devghat, Rurukshetra (Ridi), Kagbeni, Muktinath and Damodar Kunda.

Likewise, a 'Nirvana Path' based on the Lumbini-Muktinath religious and cultural route, integrating meditation, contemplation, yoga, Buddhist and Vedic philosophy, and the Himalayan cultural experiences of Manang, Mustang and Myagdi will be promoted. The government aims to connect the Mid-Hill Highway with northern transit and trade destinations such as Olangchungola, Kimathanka, Tatopani, Rasuwagadhi, Korala and Hilsa.

It also plans for the Koshi Corridor, that will cover the area from Koshi Tappu to Kanchenjunga, focusing on biodiversity conservation and clean energy development.

In the far-west region, plans are announced for the development of a distinctive 'touristic quadrangle', encompassing Ramaroshan, Khaptad, Badimalika, Shaileshwari, Ugratara and Mallikarjun.

 

Published in The Rising Nepal daily on 30 May 2026.   

Budget for FY 2026/27 today

One of the most awaited budgets of modern times

Good governance and digital technology to get priority

 

Kathmandu, May 28

Amidst high public expectations for departure in development, governance and job creation, Finance Minister Dr. Swarnim Wagle is presenting the budget for the upcoming Fiscal Year 2026/27 at the joint session of the Parliament on Friday.

The government of the almost two-thirds majority in the parliament has prioritised good governance, economic reform, connectivity, human capital development and enhancement of soft power.

Responding to the demands made for economic reforms and fast-tracking development, FM Dr. Wagle had emphasised earlier that with the strategic implementation of election promises of the ruling Rastriya Swatantra Party (RSP), epoch-making changes would be announced through the budget.

According to him, the upcoming budget will implement good governance by enhancing digital public service delivery to end delays, bureaucratic hurdles and unnecessary intermediaries.

There is curiosity in the public about the innovative approaches the Finance Minister will employ as a remedy to long-standing development challenges.

Presenting the priorities of the upcoming Appropriation Bill 2083, he said earlier that the public institutions would be freed from unlawful capture and exploitative practices, and investigations into money laundering, revenue leakage, misuse of public resources and organised crime would be made more result-oriented.

Dr. Wagle has also accorded priority to expanding the middle class by ensuring economic mobility and social security. Through the development of commercial agriculture and expansion of micro, small and medium-sized enterprises, more jobs and economic stability would be created.

The government has received a ceiling of Rs. 1890 billion for the budget of the next fiscal. This is lower than the current FY 2025/26 budget of Rs. 1964.11 billion.

Meanwhile, there have been talks about the government announcing a budget of above Rs. 2200 billion. That will create pressure for the government to generate resources to finance the projects and plans included and announced through the budget. The Finance Ministry has signalled that the salary of the government employees would be raised through the budget, while the ceiling of the income tax is also likely to go up.

This year’s budget deficit was above Rs. 484 billion. The government had announced to manage Rs. 53.44 billion in grants, but only 38 per cent of it could be realised so far. Given the revenue realisation rate of about 70 per cent until Thursday, the country needs a massive expansion of the tax base, pragmatic reforms in tax administration and checking of revenue leakage both in the market and at the customs points.

In the meantime, a large sum of money is needed for loan servicing – this year’s financing allocations were of Rs. 375.24 billion, and about 72 per cent progress has been achieved in this sector.

While addressing the heightened public aspirations seems challenging amidst the resource constraints, the government has announced that the country would be ushered into a rapidly growing economy from the current sluggish progress. Such announcements are based on the already implemented or future reforms in the legal and business environment, the development of digital infrastructure, the expansion of MSMEs, and corruption control.

Likewise, large projects that are in the completion phase will get a priority.

Through a statement on Thursday evening, the Finance Ministry informed that the budget drafting process was in the final stage.

FM Dr. Wagle briefed President Ramchandra Paudel on the upcoming budget on Thursday afternoon. He informed the President about the annual estimates of revenue and expenditure for the FY 2026/27.

On the occasion, the Finance Minister also presented the Economic Survey 2025/26 and the Annual Performance Review Report of Public Enterprises to the President. The reports were presented at the Parliament on Wednesday. 

Published in The Rising Nepal daily on 29 May 2026.   

UN to honour two Nepali peacekeepers posthumously

Kathmandu, May 28

Corporal Suraj Lamichhane and Private Debi Ram Jaisi are being honoured posthumously with Dag Hammarskjold medal from the United Nations.

The UN honours those who lost their lives for the cause of peace. Lamichhane died while serving in the Central African Republic in 2025 and Jaisi died while serving in East Timor in 2000.

The International Day of United Nations Peacekeepers will be observed around the world to pay tribute to all women and men serving in UN peacekeeping, and to honour the memory of those who have lost their lives in the cause of peace.

On 5 June at the UN Headquarters, Secretary-General Antonio Guterres will lay a wreath to honour peacekeepers and preside over a ceremony at which the Dag Hammarskjöld Medal will be awarded posthumously to 68 military, police, and civilian peacekeepers, who paid the ultimate price in the line of duty, including 59 who perished last year, the UN informed in a statement on Thursday.  

Currently, more than 50,000 civilian, military and police peacekeepers serve under the UN flag in some of the world’s most complex environments, where conflicts are increasingly fragmented, protracted, and shaped by emerging threats, including the misuse of digital tools and the spread of harmful information. A total of 118 countries currently contribute uniformed personnel to 11 peacekeeping missions. 

 

Nepal is the largest contributor of uniformed personnel to UN Peacekeeping. It currently contributes more than 4,300 military and police person – including 364 women – to the UN peace operations in Abyei, the Central African Republic, Cyprus, Democratic Republic of the Congo, Kosovo, Lebanon, Libya, the Middle East, Somalia, South Sudan and Western Sahara.

 

The General Assembly established the Day back in 2002 and selected May 29 as it was the day in 1948 when the Security Council established the first UN Peacekeeping operation, the United Nations Truce Supervision Organization in the Middle East.  

In his message, Secretary-General António Guterres said that in an era of rising tensions, peacekeeping is a proven and cost-effective way to restore stability and hope. But it requires steady political backing – and reliable financial support.   

Published in The Rising Nepal daily on 29 May 2026.