'Talks with microfinance victims positive'

Kathmandu, July 30

Several days after the microfinance victims' protests, Finance Minister Dr. Swarnim Wagle formed a committee to hold talks with protesting microfinance victims.

Making a ministerial decision on Thursday, he constituted a negotiation team under the coordination of Mahesh Acharya, Joint Secretary at the Ministry of Finance (MoF). The committee held talks with the victims on the same day.

According to the Finance Minister's Secretariat, the talks between the committee and microfinance victims were positive and focused on finding a solution.

The negotiations concluded on Thursday with both sides agreeing to reconvene it on Friday.

The committee comprises Binod Kumar Bhattarai, Joint Secretary at the Ministry of Law, Justice and Parliamentary Affairs, Suresh Panthi, Joint Secretary at the Ministry of Home Affairs, and Ramu Paudel, Executive Director at the Nepal Rastra Bank.

Bolraj Acharya, Under Secretary at the Ministry of Finance, has been appointed as the committee's member secretary.

Microfinance victims are organising demonstrations and hunger strikes since Tuesday demanding the government to implement study reports prepared on microfinance regulations and reforms.

They are also demanding to cease the auction of land collateral, fair judicial resolution for predatory loan recovery by the microfinance institutions, bring the interest rates down and remove hidden service charges.

Likewise, the protestors have demanded an end to financial exploitation and called for social justice. 

Published in The Rising Nepal daily on 31 July 2026.         

Ensure media credibility: Minister Timilsina

Kathmandu, July 29

Minister for Communications and Information Technology Dr. Bikram Timilsina held a courtesy meeting on Wednesday with Philomena Gnanapragasam, Chief Executive Officer (CEO) of the Asia-Pacific Institute for Broadcasting Development (AIBD).

The meeting focused on the development and strengthening of the communications sector, the role of community radio, legal reforms relating to the media in Nepal, and preparations for the 24th AIBD Conference, which is scheduled to be held in Nepal.

Minister Dr. Timilsina said the AIBD conference would provide an important platform for discussions on contemporary challenges and opportunities in the communications sector, while also offering valuable input to the government's ongoing efforts to reform media legislation.

"As the government moves forward with drafting new media laws and amending existing legislation, we believe the recommendations emerging from the conference in Nepal will provide valuable guidance for policymaking," Minister Dr. Timilsina said.

According to a statement issued by the minister's secretariat, he noted that with the rapid growth of citizen journalism and digital platforms, there is a need to give greater attention to the credibility, professionalism and sustainability of mainstream media.

He also assured that the government is prepared to provide the necessary coordination, cooperation and support to ensure the successful organisation of the 24th AIBD Conference in Nepal. The conference will be held in Kathmandu from 23 to 25 August, bringing together broadcasting policymakers, media experts, broadcasting organisations and media professionals from countries across the Asia-Pacific region.

On the occasion, Gnanapragasam said radio continues to be an effective means of communication in South Asia. She noted that Nepal's community radio movement has played a remarkable role in delivering information to a large section of the population.

She also highlighted that electronic media remain an important channel for disseminating early warnings and reliable information during disasters.

During the meeting, officials of the Association of Community Radio Broadcasters Nepal (ACORAB), led by its Chairperson Arjun Giri, said community radio stations continue to face legal, policy and administrative challenges despite the rapid expansion of digital and new media. They urged the government to introduce the necessary legal facilitation to enable community radio stations to work more effectively within Nepal's three-tier system of government.

 

Meanwhile, Minister Dr. Timilsina directed the relevant agencies to immediately address problems affecting Nepal Telecom's service coverage and quality, with a focus on ensuring reliable electricity supply to as many telecom towers as possible.

In a meeting with officials from Nepal Telecom, the Nepal Electricity Authority (NEA) and the Alternative Energy Promotion Centre (AEPC), he directed to establish a permanent coordination mechanism by forming a joint task force with a clear action plan to expand electricity access to telecom towers.

He said both the Ministry of Communications and the Ministry of Energy were committed to extending the national power grid to telecom towers wherever feasible. He also instructed Nepal Telecom to provide the NEA with detailed data on towers without grid electricity so that power expansion could be prioritised.

Nepal Telecom Managing Director Sangita Pahadi said unreliable electricity remained a major obstacle to expanding telecommunications services in remote areas. She said 316 Nepal Telecom towers currently lack reliable grid electricity and rely on solar power. The company also plans to build around 2,000 new towers, with about 1,400 requiring new electricity connections.

NEA officials pledged full cooperation, acknowledging that poor coordination between the two organisations had delayed progress in the past. They stressed the need for joint planning so that electricity infrastructure is developed alongside new telecom towers.

AEPC Executive Director Nawa Raj Dhakal also pledged support, saying the centre would help provide electricity to telecom towers in remote and rural areas through micro-hydropower and solar energy.

Published in The Rising Nepal daily on 30 July 2026.         

PM Shah vows support to promote export business

 Kathmandu, July 24

Prime Minister Balendra Shah has reaffirmed the government's commitment to addressing the concerns of entrepreneurs and businesses in order to expand the international market for Nepali products.

In a meeting with the representatives from the export related business associations held at the Prime Ministsr's Office on Friday, he pledged to take initiatives to facilitate trade with the USA, promote sheep farming in Karnali and Sudurpaschim provinces and address issues in dog chew industry.

Representatives of the Nepal Plywood Manufacturers' Association (NPMA), Nepal Carpet Manufacturers and Exporters' Association (NCMEA), Nepal Pashmina Industries Association (NPIA), and the Nepal Dog Chew Manufacturers' Association (NDCMA) were invited by the prime minister to discuss their challenges and solutions to them.

During the nearly two-hour meeting, Balaram Gurung, President of the NCMEA, said that although the United States and Europe remain the principal markets for Nepali carpets, new US regulations have created significant export difficulties, leaving exporters adversely affected.

He updated the PM that the USA has made certification by the Consumer Product Safety Commission (CPSC) mandatory from July 9. However, exports have been disrupted because Nepal lacks the required certification facilities, while the laboratory of the Nepal Bureau of Standards & Metrology was destroyed during the Gen Z movement.

"So, until an alternative arrangement is in place, the Ministry of Foreign Affairs (MoFA) send a diplomatic note to the US customs authorities seeking a one-year grace period for the testing requirement," Said Gurung.

Prime Minister Shah immediately instructed the ministry to take the necessary steps to implement the request, his secretariat informed in a statement.

Gurung also urged PM Shah to ensure the timely issuance of quarantine certification for imported wool used as raw material in carpet production. He explained that certification is currently carried out only three times a month, creating difficulties for businesses.

In response, the prime minister instructed the concerned authorities to increase the frequency of quarantine certification to two days a week. He also responded positively to the establishment of a Carpet Development Board under the Ministry of Industry, Commerce and Supplies, as suggested by Gurung. In addition, he said the government would promote sheep farming in Karnali and Sudurpashchim Provinces to increase the production of both meat and wool.

Similarly, Hom Prasad Ghimire, President of the NPMA, said that although Nepali plywood is of higher quality than imported alternatives, entrepreneurs in the sector continue to face difficulties due to existing legal provisions.

According to him, Nepal's 85 plywood factories have invested around Rs 40 billion, yet veneer, the principal raw material for plywood production, is being exported to India from Nepal at very low customs duty rates.

Prime Minister Shah said the government is working to raise customs duties on veneer exports in order to discourage the export of raw materials.

Likewise, Dhan Prasad Lamichhane, President of the NPIA, said that despite the abundance of grazing land in the Himalayan region, provisions of the Forest Act have made sheep farming in these areas difficult.

According to the statement, Prime Minister Shah assured him that the government would hold the necessary consultations and amend the legislation where required. He also expressed government's readiness in establishing collection centres for wool and other natural fibres required for pashmina production at the local level, together with processing centres at the provincial level.

Similarly, Resham Bahadur Pokharel, President of the NDCMA, said that some legal obstacles have prevented the industry from achieving its desired level of production and exports. He said that dog chews should be classified as a pet food industry rather than a dairy product and that such industries should be allowed easier access to imports of skimmed milk powder.

Prime Minister Shah said the government would study the proposal and address the issue if it is found to be appropriate.

Published in The Rising Nepal daily on 25 July 2026.         

PM commits to fix organic certification of agro products

Kathmandu, July 23

Prime Minister Balendra Shah has instructed the concerned government authorities to establish a system within Nepal for the certification of organic agricultural products.

In a meeting with the office-bearers of the Organic Association Nepal, the umbrella organisation representing organic agriculture entrepreneurs, at the Prime Minister's Office on Thursday, he responded to their demands including organic certification and subsidy for it.

During the meeting, the association's representatives pointed out that obtaining international certification for organic products is extremely costly, and urged the government to establish, under its oversight, an internationally recognised certification agency in Nepal.

They also noted that the government's subsidy covering up to 75 per cent of the cost of international organic certification had been discontinued, despite the high cost of the certification process.

"They requested that the subsidy be reinstated. Prime Minister Shah expressed support for continuing the subsidy until an internationally recognised certification agency meeting global standards is established in Nepal," read a statement from the Prime Minister's Secretariat.

He also said the government would take the necessary measures to promote organic agriculture while controlling the indiscriminate use of chemical fertilisers and pesticides.

Responding to the request of the entrepreneurs that the government provide subsidies for the production of organic fertilisers, PM Shah instructed the relevant authorities to introduce support grants for private industries and cooperatives engaged in producing organic fertilisers.

He also expressed support for extending to organic fertilisers the same facilities and incentives currently available for chemical fertilisers, whether for their production or purchase, read the statement.

The Prime Minister further noted that export subsidies for organic products had been suspended for the past two years. He said the relevant ministry was preparing the necessary operational procedures to resolve the issue through appropriate legal measures.

The meeting was attended by association's President Deepak Baskota, General Secretary Shanta Baskota Koirala, other association members, Gorkha Tea Estate Chairman Udaya Chapagain, Himalayan Shangrila Tea Factory Chairman Kamal Mainali, and Annapurna Organic Agro Industry Chairman Parshuram Acharya.

Following the meeting, Baskota said that since the discussions were held in positive manner and PM Shah was sincere, the entrepreneurs were hopeful of positive measures in the days to come. 

Published in The Rising Nepal daily on 24 July 2026.         

Government positive to set up Handicraft Development Board

Kathmandu, July 22

The Federation of Handicraft Associations of Nepal (FHAN) has expressed their willingness to work closely with the government to promote, expand and preserve Nepal's handicraft industry.

In a meeting with Prime Minister Balendra Shah at the Prime Minister's Office on Wednesday, representatives of the FHAN said that they were encouraged by the government's commitment to prioritising the handicraft sector and affirmed their readiness to cooperate with the government in every possible way.

On the occasion, Prime Minister Shah said that the government remains committed to formulating policies for the handicraft sector, preserving traditional arts, creating employment opportunities and ensuring the transmission of handicraft skills to future generations.

He also responded positively to the federation's proposal to establish a Handicraft Development Board under a public-private partnership (PPP) model, the Prime Minister's Secretariat informed in a statement.

FHAN officials informed that the organisation has been observing Handicraft Day independently on Mangsir 28 each year and requested that it be recognised and celebrated as a national observance. Prime Minister Shah instructed his team to coordinate immediately with the Ministry of Home Affairs regarding the formal recognition and celebration of the day.

"PM Shah also assured the delegation that the government would consider replacing the current self-declaration system for handicraft exports with mandatory invoice-based valuation, in line with the federation's suggestion that such a measure would help increase government revenue," read the statement.

He further assured the representatives that the five per cent export incentive payable on handicraft exports, which has remained suspended for the past three years, would be reinstated.

Likewise, PM Shah responded positively about returning the SAARC Handicraft Development Centre building for its intended purpose. The building has already been constructed within the Department of Industry premises for the promotion and development of handicraft production but is currently occupied by the Office of the Company Registrar.

At the request from the FHAN for the same, he assured the delegation that appropriate action would be taken to utilise the building for its said purpose.

The Prime Minister also showed particular interest in establishing a Handicraft Village in the Kathmandu Valley and opening handicraft skills training centres in all seven provinces. In addition, the FHAN requested government support in facilitating an agreement with construction companies to incorporate artistic and traditional handicraft elements into infrastructure projects.

FHAN officials also presented a number of other proposals, including measures to preserve traditional craftsmanship and the introduction of identity cards for handicraft artisans.

The meeting was attended by FHAN president Rabindra Shakya, senior vice-president Rajman Bajracharya, vice-president Kiran Kumar Sthapit, adviser Bikash Ratna Dhakhwa, and leading handicraft exporter Maheshwar Shrestha.

Published in The Rising Nepal daily on 23 July 2026.         

Govt set to establish textile and clothing development council

Kathmandu, July 21

The government is set to establish a 'Textile and Clothing Development Council' to promote domestic production and Nepali products in the international market. At the direction of Prime Minister Balendra Shah, the proposed council will be established under the Ministry of Industry Commerce and Supplies (MoICS).

During a meeting with the representatives of the Garment Association of Nepal (GAN) at the Prime Minister's Office on Tuesday, he instructed the Minister for Industry, Commerce and Supplies Gauri Kumari to immediately proceed with the establishment of the council.

The PM's direction has come as a response to the demands of the entrepreneurs.

"The government is giving priority to the development and promotion of a quality ready-made garment industry based on domestically produced raw materials," said PM Shah.

The GAN expressed confidence that the proposed council would help promote exports of garments manufactured from locally available raw materials while improving the management of imports.

According to the PMO, PM Shah reaffirmed the government's commitment to providing all necessary facilitation for the growth and expansion of the ready-made garment industry.

In line with the demands raised by the GAN, Prime Minister Shah also directed the MoICS to take immediate steps to revive distressed private-sector garment factories. Likewise, he instructed the relevant authorities to expedite efforts towards concluding free trade agreements (FTAs) and attracting foreign direct investment (FDI).

"He also directed the Ministry of Foreign Affairs to address the obstacles preventing exports of ready-made garments and other products to the United States, particularly the absence of testing and certification facilities, so as to reopen market access," read a statement from the PMO.

PM Shah further pledged to develop the skilled workforce required to realise the objectives of 'Farm to Fibre, Fibre to Fabric, Fabric to Fashion, and Fashion to Export'.

President of the GAN Pashupati Dev Pandey told the PM that although the establishment of a Green Garment Village had been included in the government's policy and programme, no budget had been allocated for its implementation.

In response, Prime Minister Shah urged them to identify a suitable site for the project without delay and assured them that the necessary budget would be provided.

The Point No. 52 of the government's Policy and Programmes for the 2026/27 envisage the establishment of a Green Garment Village at an appropriate location in the vicinity of the Kathmandu Valley.

According the PMO, Prime Minister Shah also recalled that Nepal had previously followed an export-based import system in the early 1980s and encouraged the Association to undertake a fresh study of the practice and recommend appropriate measures for its possible revival.

In 1994/95, Nepal's ready-made garment industry had emerged as the country's leading export-oriented industry, with annual exports reaching approximately US$1.2 billion. However, following the expiry of the Multi-Fibre Agreement (MFA) with the United States in 2005, garment exports declined sharply, resulting in the closure of most factories, substantial investment losses, and the displacement of thousands of workers.

At present, the industry's annual exports have fallen to around Rs. 10 billion, the GAN informed in a statement.

Stressing the importance of Nepal's successful transition from a least developed country (LDC) to a developing country, he said the government was committed to resolving all the challenges facing the ready-made garment industry. He further emphasised that Nepal should develop the capacity to produce domestically the raw materials and other inputs required by the garment sector.

The delegation of the GAN included its President, Pandey, First Vice-President Basant Raj Adhikari, General Secretary Bhim Kumar Giri, CEO Suyash Khanal, and Technical Adviser Prakash Kumar Jha.

The discussion focused on the current state of Nepal's ready-made garment industry, the challenges confronting the sector, measures to promote production and exports, employment generation, and the overall development of the industry.

"The meeting also included detailed discussions on the formation of a high-level National Export Council, to be chaired by the Prime Minister, continuation and expansion of the existing cash export incentive scheme and introduction of Export Credit Insurance," according to the GAN.

Likewise, talks were also centred on the establishment of an internationally standard exhibition and convention centre, creation of an internationally accredited testing laboratory, and promotion of digital trade and cross-border e-commerce.

In its statement, the GAN expressed confidence that with industry-friendly policies, improved infrastructure, enhanced trade facilitation and the effective implementation of export-oriented programmes, the ready-made garment industry could once again become one of the country's leading export sectors.

The meeting is a part of the series of meetings PM Shah is holding with the private sector and stakeholders of business and economy to understand the challenges they face, seek suggestions on solutions and policy reforms, and issue the necessary directives to the relevant authorities for their implementation.

Published in The Rising Nepal daily on 22 July 2026.         

KMC announces tax incentives, penalty waivers for FY 2026/27

Kathmandu, July 18

Kathmandu Metropolitan City (KMC) has introduced a range of tax incentives and penalty waivers for taxpayers for the current Fiscal Year 2026/27. Through its Kathmandu Metropolitan City Finance Act, 2083, the Capital city is implementing tax concessions and penalty remission for a year.

The Act came into effect after being authenticated by Acting Mayor Sunita Dangol on July 16. The legislation provides taxpayers with a range of special discounts, concessions and waivers of penalties on outstanding tax liabilities, the KMC informed in a statement on Saturday.

It said that the special incentives have been announced to encourage taxpayers to pay their dues on time.

Taxpayers who settle their property tax, business tax and rental tax for this fiscal year by the end of mid-October 2026 will receive a 10 per cent discount on the total tax payable.

This period is the first quarter of the current fiscal year.

Likewise, the metropolis has announced significant relief for taxpayers with unpaid taxes from previous years. Taxpayers who clear all outstanding tax liabilities in a single payment by mid-October will have all penalties accumulated in previous years fully waived.

The city has also introduced special provisions to encourage small businesses and support targeted groups. Businesses with capital of up to Rs 500,000, registered in the name of a woman, indigenous person, dalit, person with a disability, or a young entrepreneur under the age of 35, will receive a 40 per cent discount if they pay their taxes by mid-October.

If the business owner is a permanent resident of Kathmandu Metropolitan City, the discount will increase to 50 per cent.

"New industries providing employment to at least 20 people will be entitled to a 95 per cent reduction in business tax for up to three years," read the statement. To promote tourism and improve urban management, the Capital city is implementing an additional 10 per cent discount on property tax for hotels and resorts.

Similarly, buildings constructed solely for commercial parking purposes will be fully exempt from property tax for 10 years from the date of completion. Residential buildings equipped with rainwater recharge systems within their compounds will also be eligible for up to a 95 per cent reduction in property tax.

As per the new rules, taxpayers earning up to Rs 240,000 annually from rent need to pay 5 per cent rental tax, while those earning more than Rs 240,000 annually have to pay 7 per cent rental tax.

The Act also exempts one business signboard of up to 15 square feet used solely for business identification from advertisement tax, and signboards produced in the Ranjana script will receive a 95 per cent tax concession. This measure is taken to promote local language and culture, said KMC.

Likewise, to ease taxpayers' financial burden, KMC has allowed taxes for the current fiscal year to be paid in up to three instalments. Taxpayers may pay 40 per cent of the total amount in the first instalment and 30 per cent each in the second and third instalments.

Taxpayers with outstanding liabilities exceeding Rs 10 million may also apply for a multi-year instalment facility, but this must be approved by the Metropolitan City.

According to KMC, it adopts a stringent approach towards taxpayers who repeatedly ignore tax obligations and official notices. Under the new provisions, the City may seal the business premises of tax defaulters, freeze their bank accounts and recover unpaid taxes in the same manner as government dues.

Published in The Rising Nepal daily on 19 July 2026.         

Distribution of prepared passport remains open

Kathmandu, July 8

The Department of Passport (DoP) informed that although the passport service will be suspended temporarily for a couple of days this week, passports that are already prepared at the Department will continue to be distributed.

"Service recipients who have received an SMS notification on their mobile phones to collect their passports may contact the Department and collect their passports accordingly," the DoP informed in a statement on Wednesday.

The DoP is migrating the existing passport issuance and distribution system to a new one from July 13. The migration will affect passport services provided through district and area administration offices, Nepali diplomatic missions abroad, and the DoP itself.

The DoP informed last week that passport services provided through district administration offices and Nepali diplomatic missions abroad will remain suspended for three days, from 8 to 10 July. Likewise, passport services provided directly by the DoP will be suspended for two days, on 9 and 10 July.

The department said that passport services under the new system will resume on July 13, and will thereafter operate on a regular basis. July 11 and 12 fall on the weekend. 

Published in The Rising Nepal daily on 9 July 2026.       

Govt begins efforts in good governance, reform

 Kathmandu, July 3

The government has completed its first 100 days in office, marking the beginning of efforts to implement its commitments to good governance, public sector reform, reducing corruption, recovering illicit assets, and strengthening the accountability of state institutions.

Under the leadership of Prime Minister Balendra Shah, the government has launched the implementation of its policy agenda, accompanied by a long-term vision aimed at achieving its good governance objectives.

In the budget for the Fiscal Year 2026/27, the government has introduced programmes focused on economic transformation. It has also initiated accelerated reforms to ensure economic stability while addressing the management of informal and unplanned settlements.

During its first 100 days, the government has implemented measures aimed at eliminating delays and discourteous treatment of service users in public offices, expediting the printing of passports and driving licences, and making public service delivery more citizen-centred.

Former treasurer and senior leader of the Rastriya Swatantra Party (RSP), Lima Adhikari, and political analyst Professor Meena Vaidya Malla described the government's initial performance as encouraging.

"The RSP has also successfully completed its general convention during this period. Within these 100 days, the government has taken significant action against corruption. I believe that the commitment demonstrated by both the government and the RSP, together with the practice of a new political culture, will help strengthen, enhance and consolidate Nepal's democracy," Professor Vaidya said.

Likewise, Adhikari stated that the government has developed a clear roadmap, particularly for improving public service delivery and promoting good governance. She noted that it has begun implementing measures to eliminate the difficulties and inconvenience that citizens have long faced in accessing public services.

She further claimed that the policy of zero tolerance towards corruption has been applied effectively from ward level through to the central government, and that the budget has helped restore confidence within the private sector.

"The budget is transformative. The work accomplished during these first 100 days has been outstanding. Reforms in the economic sector will revitalise the overall economy," said Adhikari.

However, Political analyst Professor Rajesh Gautam said that the government's approach should be aligned with public expectations. While there were grounds for optimism during the early stages following the formation of the government, he said the current situation suggests that it has not been able to uphold the aspirations of the people and democratic principles in an appropriate manner.

"There must be proper coordination between the government and the party leadership. At present, it appears as though the government is moving in one direction while the party leadership is moving in another. Such duality creates uncertainty in politics. It is needed to provide a long-term direction for the country's politics," said Professor Gautam.

He also emphasised that, in tackling corruption, the government should proceed systematically by gathering robust evidence before pursuing legal action.

"Those who have been arrested are subsequently being released by the courts. This indicates that the charge sheets have not been prepared with sufficient strength and supporting evidence," he said while adding that the government should not be driven by publicity.

Published in The Rising Nepal daily on 4 July 2026 (Originally written by Ashok Adhikari).       

Efforts Begin For Economic Takeoff

 

The first 100 days of any government are typical, as during this period the government tries to set its feet, creates indications for policy and structural reforms, and learns the nitty-gritties of governance. It is termed the 'Honeymoon Period' because the government has leverage of 'public doubt' and goodwill, less criticism from the media and less resistance and attacks from the opposition parties. It is the time the government or the ruling party sets the course for the future and reveals its priorities and assertiveness for reform. 

However, these 100 days are not enough to exhibit major transformation in policy, economy, or society. But the government, led by Prime Minister Balendra Shah with Dr. Swarnim Wagle in the driver's seat of the economy, has made ambitious attempts for governance, reforms, economic recovery, boosting private sector confidence, and digital transformation to implement long-term structural change. 

The government has set an ambition to build a Rs. 10 trillion economy by 2030. FM Dr. Wagle has said that rather than focusing solely on fiscal consolidation or immediate growth, the government has framed its economic agenda around expanding Nepal's productive capacity through energy generation, tourism, information and communication technology (ICT), agriculture, infrastructure development and institutional reform. With the announcement of '100 programmes for 100 days,' the government had clearly said that it had accorded priority to good governance, administrative reforms, economic growth, and private sector confidence. 

But although macroeconomic indicators have improved over the past year with sufficient foreign exchange reserves, satisfactory export growth, and enough liquidity in the financial system, the private sector is facing declining demand, credit growth is poor, and investment and business confidence is at the bottom. 

To reverse this scenario, the Ministry of Finance is operating in 'mission mode' and is replacing lengthy and cumbersome bureaucratic processes with swift decision-making and adoption of digital technology. Projects are being monitored digitally while clear performance indicators are set to strengthen institutional accountability. Administrative procedures are increasingly being moved online in an effort to reduce delays, improve transparency, and minimise opportunities for corruption. 

Instead of organising physical meetings and conferences to solicit suggestions on the government's policy and programmes and budget, the government launched a digital portal for the same so that all Nepalis living at home and abroad could equally participate in the policy making and budget formulation. 

Several outdated laws and regulations that have been obstructing the growth of the private sector, economy, and development were amended or repealed. Since the government implemented this policy reform as per the demand of the private sector, it is expected to boost the morale of the investors and businesspersons. The government has also decided to postpone Nepal's graduation to 'developing country' status from 'least developed country,' which was due in November 2026. The process will be delayed for three years until 2019, providing time for the government and private sector businesses to prepare for the upgrade. 

Enhancing transparency

Through the budget of the fiscal year 2026/27, the government increased the slab of personal income tax, which will give relief to the lower middle and middle classes. The salary of civil servants has been increased by 20 per cent. Tax rates for higher earners are also reduced. Digitalisation of tax administration and a provision that requires businesses with annual turnover exceeding Rs. 200 million to join the Central Invoice Monitoring System are expected to check revenue leakage. 

FM Dr. Wagle reduced customs duties on 273 types of raw materials to make sure that the tariff on industrial raw materials is one level lower than that on the finished goods. He also announced amendments to company law to facilitate the process of dissolving companies while ensuring clarity on issues such as conflicts of interest and disclosure of information.

The Ministry of Finance has launched an electronic pension verification system, benefiting over 350,000 pensioners and saving about Rs. 150 million through the elimination of bank commission and administrative costs. Similarly, the MoF has piloted a salary distribution every fifteen days. 

Likewise, in an effort to enhance fiscal discipline, fuel allowances for senior government officials have been reduced, and overtime allowances for the officials of the Nepal Oil Corporation are being checked with the implementation of shift-based working hours. 

Infrastructure reform

In infrastructure development, the government has given priority to complete the priority projects. National pride as well as the priority projects have received the increased attention of the finance minister, the home minister, and the concerned line ministries. Legal amendments have been made to facilitate environmental assessments and tree-felling approvals. The Public Procurement Act and its regulations have also been amended to streamline and shorten procurement procedures. The government has also ensured the stability in the tenure of project chiefs and other key personnel. Meanwhile, the Appropriation Act, 2082 and the Financial Procedures and Fiscal Responsibility Regulations, 2077, have been amended to delegate authority to line ministries to allocate funds within the capital budget. 

The government has allocated an adequate budget for the forthcoming fiscal year for the national pride projects, supported by a clear roadmap for their completion. Resources have been allocated, and legal as well as procedural simplifications have been introduced to ensure that these projects are completed within the stipulated timeframe.

Legal and institutional reforms have also sought to improve conditions for foreign direct investment, with greater emphasis placed on economic diplomacy and engagement with multinational companies. The restructuring of the Nepal Stock Exchange and reforms to capital market governance likewise signal an intention to strengthen domestic capital mobilisation. 

With a strong rise in remittance inflows, robust foreign exchange reserves, a current account surplus, and a strengthened balance of payments, the country is in greater macroeconomic stability. This has given both the government and private sector greater confidence to implement reforms and push forward the developments to achieve economic growth of 7 per cent and contain inflation below 6 per cent. 

Published in The Rising Nepal daily's supplement on 4 July 2026.       

DoP set to upgrade passport issuance system

Services to be halted for couple of days 

Kathmandu, July 3

The Department of Passports (DoP) is set to introduce a new passport issuance and distribution system from July 13, and there will be a temporary suspension of passport services during the transition period.

The DoP informed in a statement on Friday evening that preparations for shifting from the existing system to the new platform have been completed. The transition will affect passport services provided through district and area administration offices, Nepali diplomatic missions abroad, and the DoP itself.

According to the DoP, passport services provided through district administration offices and Nepali diplomatic missions abroad will remain suspended for three days, from 8 to 10 July. Likewise, passport services provided directly by the DoP will be suspended for two days, on 9 and 10 July.

The department said that passport services under the new system will resume on July 13, and will thereafter operate on a regular basis. July 11 and 12 fall on the weekend. 

Published in The Rising Nepal daily on 4 July 2026.       

Economic diplomacy key tenet of foreign policy: Foreign Ministry

Kathmandu, July 5

The Ministry of Foreign Affairs (MoFA) has said that first 100 days of the new government has been successful with the initiatives like launching a new mobile app for Nepalis in foreign countries, rescue of Neplais in crisis, postponement of the graduation from the Least Developed Country (LDC), and execution of economic diplomacy.

In a statement published on Saturday night, the Ministry also highlighted the visit of Foreign Minister Shisir Khanal to India and China, internship programme and initiatives in controlling hundi as its achievements.

According to it, the government has initiated a formal process to defer Nepal's scheduled graduation from the Least Developed Country (LDC) category. "Although Nepal was previously scheduled to graduate on 24 November 2026, due to recent domestic and international economic and geopolitical developments, the government has sought to postpone the graduation until November 2029," read the statement.

On 13 May 2026, FM Khanal wrote to the Chair of the United Nations Committee for Development Policy (CDP) requesting the deferral. According to him, reasons behind seeking the postponement are economic impact and global instability, loss of trade preferences and employment risks, delayed implementation of the Smooth Transition Strategy, post-pandemic vulnerability, and impact of the development in West Asia.

The ministry launched the MoFA Mitra mobile application, on May 26. The application is designed to provide consular assistance and other essential services to Nepalis living abroad, particularly those facing emergencies. The ministry has also expanded its online document authentication system and extended digital consular and legal advisory services to all seven provinces, 77 districts and 537 local government units.

Likewise, it said that a diplomatic intervention had resolved a long-standing problem affecting around 2,000 Nepalis in Portugal whose temporary residence applications had stalled after forged consular authentication stamps were discovered on original police clearance certificates. Following discussions between Nepali and Portuguese authorities, supported by the Nepali Embassy in Lisbon, applications for temporary residence permits are now being processed.

Efforts to protect vulnerable Nepalis overseas have also continued. The ministry, in coordination with Nepali diplomatic missions, has rescued and repatriated 819 citizens who had fallen victim to online scam networks operating in South-East Asia, read the statement.

Similarly, Nepal also secured the release of detained nationals through sustained diplomatic engagement. The United Arab Emirates granted pardons to 128 Nepali prisoners in April 2026, while Saudi Arabia pardoned 33 Nepali nationals in June.

The MoFA also said that it achieved success in resolving trade obstacles affecting Nepali tea exports to India. Following sustained discussions with Indian authorities, including the Ministries of External Affairs and Commerce, the Food Safety and Standards Authority of India and the Tea Board of India, export procedures have been streamlined. The issue was also raised during the Foreign Minister's official visit to India in June.

In response to the crisis in West Asia, a high-level inter-agency task force was formed under the leadership of the Foreign Minister. The team submitted recommendations outlining short, medium and long-term measures to mitigate the conflict's impact on Nepal. During the regional tensions, the ministry established a 24-hour Emergency Response Team, strengthened coordination with diplomatic missions and facilitated the return of 1,047 Nepali nationals from the affected region.

The ministry also announced that Nepal's upgraded passport management system is expected to go live later this month. According to it, preparations are largely complete, while mobile passport services have been introduced in countries without resident Nepali diplomatic missions.

"Work has also begun to allow citizens to apply for passports from any district, and a partnership with the Department of Postal Services will improve passport delivery nationwide," said the MoFA.

On the diplomatic front, Foreign Minister Khanal's official visits to India from 5 to 7 June and China from 14 to 17 June were described as significant milestones.

Discussions with both neighbours focused on expanding trade, investment, energy cooperation, tourism, connectivity and broader economic partnerships. Nepal also reiterated its commitment to resolving outstanding border issues with India through diplomatic dialogue based on historical agreements and maps, while meetings with Chinese leaders reinforced bilateral cooperation and development partnerships.

The ministry said it is giving greater priority to country-specific strategies aimed at identifying mutually beneficial areas of cooperation and strengthening economic diplomacy. Policy initiatives have focused on promoting exports, foreign investment, tourism, information technology and development cooperation through closer coordination among federal, provincial and local governments, the private sector and Nepali diplomatic missions abroad.

Likewise, Foreign Minister Khanal held a virtual meeting with UK Defence Secretary John Healey and Minister for Veterans Alistair Carns' representative Lewis Sander-Jones to discuss long-standing issues concerning former British Gurkha soldiers.

Nepal also secured a United Nations declaration recognising 15 April as the International Day of Wellbeing, while an agreement was signed with Heidelberg University's South Asia Institute in Germany to repatriate centuries-old Nepali manuscripts.

Meanwhile, the ministry launched its first-ever MoFA Nepal Summer Internship and Fellowship Programme 2026, selecting 20 participants from 1,278 applicants to conduct research on foreign affairs, economic diplomacy and the Nepali diaspora. It also opened, for the first time, a public application process for ambassadorial appointments, attracting around 3,000 applications.

Published in The Rising Nepal daily on 6 July 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.   

Nepal initiates for LDC graduation deferral

Kathmandu, May 22

Nepal has initiated the formal process to temporarily postpone its scheduled graduation from Least Developed Country (LDC) status to a 'developing nation'.

Minister for Foreign Affairs Shisir Khanal has written to the Chair of the United Nations' Committee for Development Policy (CDP) on May 13, requesting a deferral of the country's graduation until November 2029.

"The government has decided to seek the deferral, taking into account recent national and internal economic and political circumstances," Spokesperson of the Ministry of Foreign Affairs (MoFA) Lok Bahadur Paudel Kshetri informed at a press briefing on Friday.

According to the MoFA, Minister Khanal has cited five reasons to justify his request for the delayed graduation: the impact of regional conflict on the economy, risks of losing favoured treatment at international markets, slow transition preparation, prolonged impact of the COVID-19 pandemic and risk of remittance decline.

"The Nepali economy has been adversely affected due to regional conflicts, disruptions in global supply chains, and the impact on remittance inflows," said the MoFA, while citing the poor economic growth prospects of just 2.3 per cent in 2026 as projected by the World Bank.  

Following graduation from LDC to developing country status, Nepal risks losing benefits such as duty-free and quota-free (DFQF) market access. It is estimated that this could lead to a decline of up to 35 per cent in employment within the productive sector.

The private sector has also long been asking the government for the deferral. Its voice for graduation postponement became louder following the destruction of the private properties during the Gen Z movement last year. The Federation of Nepalese Chambers of Commerce and Industry and Confederation of Nepalese Industries had long maintained that the country should seek deferral for at least three years and implement a robust transition strategy to reduce the cost of industrial production, enhance the infrastructure and ensure access to the major international markets.

The MoFA acknowledged that for various reasons, the implementation of Nepal’s Smooth Transition Strategy (STS) has been slower than anticipated. "While the recovery from the COVID-19 pandemic has yet to fully stabilise, geopolitical tensions and the effects of climate change have created additional challenges for it," it said.

Likewise, recent developments in the Middle East have affected remittances, which form the backbone of Nepal’s foreign currency reserves. In addition, rising fuel, food and fertiliser prices have impacted the tourism industry and the wider national economy, which is likely to impact more jobs at home and abroad.

Graduation in one and a half decades

Although Nepal first met the criteria for the graduation from the LDC status in 2015 during the review of the United Nations, the country decided not to graduate due to the devastating Gorkha Earthquake the same year and its implications on the economy and infrastructure.

In 2018, the Committee for Development Policy of the UN formally recommended Nepal for graduation and the country was to graduate in 2021. But the country requested for a deferral amidst the ravaging COVID-19 pandemic and its pressure on tourism, foreign and domestic employment, and remittance. The country got an additional five years and was slated to graduate to a developing country status in November 2026.

According to the experts on LDC graduation, Bangladesh's deferral following the movement a couple of years ago was a motivator for Nepal's deferral. Bangladesh, Laos and Nepal were slated to graduate together in November. But this time, Laos will witness the progress alone.

Once a country is graduated from the LDC, it will lose the DFQF facility in the markets in the developed countries, options for the concessional loans and grants from the multilateral donors and support in programmes and travels to UN programmes.

However, Nepal has missed the favoured treatment like the DFQF facility provided by the USA and the European Union. The country failed to produce enough goods to export to those markets, and only a small benefit could be attained by the private sector.

Published in The Rising Nepal daily on 23 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.           

Govt launches policy collection portal

Kathmandu, May 9

The Office of the Prime Minister and Council of Ministers (OPMCM) has launched a ‘Suggestion Collection Portal’ to ensure the direct participation of citizens in the process of formulating the policies, programmes and budget for the upcoming fiscal year.

The digital platform has been introduced with the objective of making governance more transparent and people-oriented by incorporating the genuine needs and fundamental expectations of the public into the policies and programmes that are set to be unveiled next Monday.

Through this portal, all Nepali citizens residing in Nepal and abroad, as well as subject experts and policymakers, will be able to submit their valuable opinions and suggestions directly to the government regarding budget formulation and development priorities, informed the Finance Ministry in a statement.

"The initiative has been launched in line with the Prime Minister’s broader plan to ensure that the policy-making process is not confined solely to administrative circles, but also values the sentiments and expertise of the general public," read the statement.

The Prime Minister's Office stated that the portal would help bridge the gap between citizens and the state, establish a new practice of good governance, and ensure that the suggestions received are seriously reviewed at the administrative level and implemented through policy measures.

The system also includes a special ‘suggestion tracking’ feature, enabling citizens to monitor the status of their submissions and the actions taken by the government in response.

Meanwhile, the government has made a public appeal to all Nepalis to actively participate in this important digital initiative and contribute constructively to the national campaign of building a “Prosperous Nepal”.

Citizens will be able to use the portal through the official website of the OPMCM to send their opinions and suggestions directly to the Prime Minister’s Secretariat.
Within a few hours of the launching of the portal, more than 1000 suggestions have been submitted to it. The suggestions are broadly categorised into two – Budget and Policy.

Likewise, the suggestions are received in the areas of intergovernmental coordination, finance, industry and commerce, public finance management, infrastructure development, education, health and science, forest management, land administration, social security, citizen service, good governance, law and justice, civil servant administration, and others. 

Published in The Rising Nepal daily on 10 May 2026.