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Nine months ago, a rain-swollen Roshi swept away a 12-km Nepalthok-Chaukidanda section of the BP highway, a lifeline linking districts in eastern Tarai with midhill districts.

In the immediate aftermath of the disaster that rendered hundreds homeless, marooned thousands of travelers headed to the Kathmandu valley from the southern plains and vice-versa for days on end while three patients died in ambulances for want of treatment. Such was the situation that several people had to be rescued via air. 

Sadly, the government appears to have forgotten about the calamitous situation altogether. 

Completed with Japanese assistance amounting to Rs 20 billion (approx) about a decade ago after 20 years of struggle, this vital link was facilitating trade with both of Nepal’s neighbors and changing the economic fortunes of districts in east Tarai as well as midhill like Mahottari, Dhanusha, Kavre, Ramechhap, Sindhuli, Okhaldhunga, Udayapur and Solukhumbu.

Bazaars and settlements located along the artery were doing brisk business by operating hotels, charging stations for electric vehicles, small industries that produced mouthwatering indigenous sweetmeats like khuwa and kurauni made using milk sourced from local farms, so on and so forth.

With the road still in bad shape, these businesses are bleeding dry, not to mention inconveniences facing lakhs of people traveling between the valley and the southern plains.

For repairing a vital lifeline that connects different parts of a country, bolsters national unity, gives a lease of life to subnational economies that contribute to the national economy big time, nine months is a pretty long time. But the government appears least bothered about repairing the artery and ensuring its full operation at the earliest. If that were not the case, it would have completed the works well before the monsoon. 

All that the government appears to have done with regard to the highway repair works during this period is build a diversion in its feeble bid to escape the wrath of a mighty Roshi and keep the movement of people and goods going, partially.

But the diversion becomes quite perilous whenever it rains. Still, a large number of people have no option except to tread the road that is quite prone to disasters like landslides and floods.

Aware of this situation, lawmakers representing Ramechhap and Sindhuli districts, among others, have drawn the attention of the government, particularly of the Minister for Physical Infrastructure and Transport, to little avail.

At the time of its construction, there were vociferous demands that the artery in question was too narrow and a wider road was necessary to connect the valley with eastern parts of the country and give the national economy a turnaround. Ironically, the government has not bothered to allocate even a penny for the repair and maintenance of this vital lifeline. 

A scarred highway reflects very poorly on the performance of a government that, critics say, has been long on rhetoric, short on action. Let the highway in bad shape be an eyeopener, prompting this administration with a comfortable majority in the parliament to perform like a well-oiled machine, on the highway and beyond.  

The government has set ‘Intensity in Rice Cultivation: Food Security and Self-reliance’ as the slogan for the National Paddy Day this year. This slogan has been set to increase rice production for food security.

The Department of Agriculture is organising various programmes on the occasion of the 22nd National Paddy Day and Paddy Plantation Festival, which will be celebrated on June 29 this year, focusing on research on climate-resilient technologies and increasing rice production.     

In this connection, an interaction programme with experts on the protection of indigenous crops, promotion of technology and minimising the impact of climate change in this region, is scheduled to be organised at Khumaltar. A paddy planting festival cum honouring farmers will also be held on the occasion.     

The Director General of the Department, Prakash Sanjel, said that there is a plan to increase rice production and productivity, and to raise awareness among farmers regarding food security.

Rice is the main food crop which has a direct bearing on the economic development, and is linked with social, cultural and religious traditions of the country. It is the staple crop of Nepal.     

Director General Sanjel stated that in view of the importance of rice, the National Paddy Day and Transplanting Festival have been celebrated every year since 29 June 2009, with the aim of promoting paddy production, modernisation and commercialisation.     

In the fiscal year 2023-24, the production of rice was 5,724,234 metric tonnes, while in the year 2024-25, the production increased to 5,955,476 metric tonnes. In the year 2023-24, rice was planted on 1,438,989 hectares, and in the year 2024-25, rice was planted on 1,420,636 hectares.     

Despite a general decrease in the area under rice crop, the increase in productivity has led to an overall rise in rice production, according to Mahananda Joshi, an information officer at the Ministry of Agriculture and Livestock Development. He said the production of rice has increased due to the use of chemical fertilisers, improved seed varieties and the timely rainfall.

Independent media outlets around the world are facing an unprecedented crisis, according to a new report released today by three consortia of top media-development organisations led by Internews Europe, BBC Media Action, and Free Press Unlimited, and supported by the European Commission’s Directorate-General for International Partnerships.

The report, Crisis in Journalism: The Impact of the US Government Funding Cuts on Global Media, provides the first in-depth look at the consequences of the 2025 US executive order suspending most foreign assistance. The move led to a sudden loss of around $150m in annual support for journalism and the wider information ecosystem—support that many media outlets in high-risk and authoritarian contexts relied on for survival.

“Without immediate and flexible support, countless journalists and communities will be left even more vulnerable to censorship, propaganda, and information blackouts,” said Internews Europe CEO Meera Selva. “Even modest investments can protect the future of independent media.”

The rapid assessment, led by Internews Europe and conducted in collaboration with three media development consortia under the European Commission’s Thematic Framework Partnership for Human Rights and Democracy, draws on data from over 50 countries across Africa, Asia, Latin America and the Middle East.

Simon Bishop, CEO of BBC Media Action, said: “These devastating funding cuts leave a vacuum in some of the world’s most fragile information environments. Independent journalism is a cornerstone of democracy – without it, we cannot have human rights or freedom. We know local media are creative, innovative and used to making the most of limited resources, and often it takes only a small amount of support to ensure their survival. Urgent investment will prevent the total erosion of trusted local news and information where it’s needed most.”

Ruth Kronenburg, Executive Director of Free Press Unlimited, said: “This is not just a financial crisis, it’s a human rights crisis. We must realise that the brave journalists in repressive countries around the world are our eyes and ears. Now we run the risk that these eyes will close one by one, until we are in the dark about what is going on in the world and authoritarian regimes are legitimised.”

The report outlines urgent needs for emergency support, operational funding, and long-term sectoral strategy, including rapid response and relocation funds for at-risk journalists; core funding for strategic outlets and support organisations; continued investment in public interest journalism; and greater coordination among international donors and partners.

Nepal Mango Fest 2025, a three-day event celebrating the diversity of mangoes from Madhesh, is set to begin on June 27 at Walnut Bistro in Panipokhari, Kathmandu. The festival is organized in collaboration with Kathmandu Organics, AgriNepal, Earthier App, UB Holdings, and Walnut Bistro. It aims to promote Nepali mango varieties, support local farmers, and highlight the importance of sustainable and pesticide-free produce.

The event will feature over ten varieties of local mangoes on display, with five—Malda, Dasheri, Jarda, Kishanbog, and Culcatia—available for direct purchase from farmers. More than 20 mango-infused dishes and drinks will be offered by participating restaurants. Partner venues, including Walnut Bistro (Lazimpat), H2O Café (Swayambhu), and Watering Hole (Jhamsikhel), will present special mango-themed menus during the festival, which runs from June 27 to 29, daily from 11:00 am to 6:00 pm.

Malaysia Airlines has upgraded its Bonus Side Trip (BST) program, offering international travelers a free domestic return flight to one of seven Malaysian destinations when transiting through Kuala Lumpur. This initiative allows passengers to explore Langkawi, Penang, Johor Bahru, Kuantan, Alor Star, Kuala Terengganu, or Kota Bharu at no extra cost. Dersenish Aresandiran, chief commercial officer of Malaysia Aviation Group, said the BST reflects the airline’s commitment to showcasing Malaysia’s cultural richness and hospitality. The program supports ‘Visit Malaysia Year 2026’ by promoting sustainable tourism and encouraging travelers to discover lesser-known local gems beyond the capital.

Nepal hosted a national consultation in preparation for its participation in the upcoming Fourth International Conference on Financing for Development (FfD4), with key national and international stakeholders emphasizing the importance of inclusive global financing and sustained support for countries in transition.

Speaking at the event, UN Resident Coordinator Hanaa Singer Hamdy underlined the significance of the FfD4 outcome document, the Compromiso de Sevilla, which aims to create a renewed global financing compact. She emphasized that multilateralism is evolving—not fading—and called for collaborative efforts to shape a more equitable global financial system.

With Nepal nearing its graduation from the Least Developed Country (LDC) category, discussions focused on ensuring a smooth and sustainable transition. The UN official stressed that while graduation marks progress, Nepal continues to face structural challenges, including climate vulnerability, economic reliance on remittances, and limited industrial capacity.

The consultation highlighted Nepal’s proactive role in the FfD4 process, led by the Ministry of Finance with support from the United Nations. Since 2023, Nepal has engaged a broad range of stakeholders—from government agencies to youth groups and development partners—to contribute to the FfD4 agenda.

Key recommendations from the event included advocating for inclusive trade rules, securing post-graduation support mechanisms, attracting sustainable investment, and mobilizing domestic resources. Nepal's recent steps, such as legislative reforms, a sovereign credit rating, and the development of an Integrated National Financing Framework, were noted as part of its broader transition strategy.

Participants agreed that Nepal’s graduation is not just a national milestone but a symbol of progress for other LDCs, particularly those facing similar vulnerabilities. The conference served as a platform to reaffirm Nepal’s commitment to shaping a resilient and inclusive development path.

Residential housing loans have shown sluggish growth despite banks and financial institutions (BFIs) prioritizing the sector and offering competitive rates. 

According to the latest data from the Nepal Rastra Bank, housing loans up to Rs 20m extended by commercial banks increased by just 4.07 percent over the past year, reflecting the broader slowdown in credit expansion and the economy.

Total housing loans under Rs 20m increased to Rs 325.36bn in mid-May 2025, up from Rs 312.63bn in mid-May last year. This reflects a low appetite for residential borrowing even though interest rates have dropped to some of the lowest levels yet.

Although banks are offering home loans at premiums of less than one percent above their base rates, credit disbursement has remained below expectations. Bankers say that although housing and real estate loans are a top priority, weak consumer confidence and sectoral distress have hindered credit uptake.

The Nepal Rastra Bank (NRB) has been adopting more flexible policies to boost lending in the real estate sector. The central bank last year reduced the risk weight on housing loans above Rs 5m to 125 percent through a monetary policy review. It allowed homebuyers to use up to 70 percent of their income for loan repayment—principal and interest combined. Before that, only 50 percent of a borrower’s income could be allocated for loan installment payments.

Bankers attribute the slowdown primarily to the ongoing economic downturn, which has dampened individual income and weakened borrowing capacity. “The majority of people can no longer verify stable income sources, making it difficult to qualify for new loans,” one banker said.

Among commercial banks, NIC Asia Bank has the highest exposure to residential housing loans with Rs 48.7bn invested in loans under Rs 20m. Global IME Bank was next with a total housing loan portfolio of Rs 39.94bn. Nepal SBI Bank has the lowest at Rs 2.42bn.

The real estate sector itself is going through a severe downturn, with banks failing to offload their non-banking assets despite publishing auction notices repeatedly. When borrowers default on loans, banks and financial institutions (BFIs) acquire the property pledged as collateral. Banks are supposed to sell off these properties at the earliest and recover their investment, but a slowdown in the real estate sector means banks are not finding buyers. This accumulation of non-banking assets is hitting bank profitability.

Nepal Rastra Bank (NRB) has adopted a more flexible approach to direct sector lending by granting banks and financial institutions an additional year to meet mandatory credit flow targets for specific priority sectors.

Through an amendment to its Unified Directives for Banks and Financial Institutions, the central bank extended the deadline to meet minimum lending requirements in agriculture and small and medium enterprises (SMEs). Previously, commercial banks were required to meet these sectoral lending thresholds by mid-July 2027. With the revision, banks now have until mid-July 2028 to comply.

Under the new provision, commercial banks must gradually increase credit exposure in agriculture and SMEs to reach 15 percent of their total loan portfolio by mid-2028. The phased targets require banks to achieve 11 percent by mid-July 2025, 12 percent by mid-July 2026, 13 percent by mid-July 2027 and 15 percent by mid-July 2085. Previously, banks were expected to achieve 12 percent by this fiscal year, 13 percent by mid-2026 and 15 percent by mid- 2027.
Similarly, development banks are now required to channel at least 20 percent of their total loans into agriculture, cottage, small-scale industries, energy, and tourism by the extended deadline of mid-July 2028. Likewise, Class ‘C’ finance companies must disburse at least 15 percent of their total loans to these sectors by mid-July 2028.

NRB has also introduced flexibility for commercial banks that have already met the minimum lending requirement in the agriculture sector but are struggling to meet quotas in other areas. These banks are now allowed to allocate the shortfall to their area of expertise, provided the total lending across all targeted sectors meets the required percentage.

In addition, the central bank has allowed restructuring and rescheduling of loans up to Rs. 20m disbursed in agriculture, energy, and SMEs, if the borrower faces financial difficulties. The provision allows a one-time rescheduling based on the borrower’s request and a detailed assessment of the business plan and cash flow, provided at least 10 percent of the due interest has been recovered.

However, NRB has imposed strict conditions on such restructuring. As per the new provision, restructuring must be completed by mid-September, the restructured loan must retain at least the same risk classification as of mid-December last year and previously made loss provisions cannot be reversed during restructuring.