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Ministers for Economic Affairs from all seven provinces have jointly called on the federal government to increase fiscal equalization grants in line with the growth of the federal budget and to make the grant distribution process more transparent, predictable, and stable throughout the fiscal year.

Issuing a ‘Hetauda Declaration’ after a national workshop on “Strengthening Fiscal Federalism and Future Directions” in Hetauda, they emphasized that fiscal federalism—the cornerstone of Nepal’s federal structure—cannot function effectively unless provinces receive timely and adequate financial transfers from the federal government. They said that inconsistencies in grant allocation and mid-year cuts have hampered provincial planning and implementation of development projects.

The declaration was signed by Minister for Economic Affairs of Koshi Province Ram Bahadur Magar; Chief Minister and Minister for Economic Affairs of Madhesh Province Jitendra Sonal; Minister for Economic Affairs and Planning of Bagmati Province Prabhat Tamang; Minister for Economic Affairs of Gandaki Province Dr. Takaraj Gurung; Minister for Economic Affairs of Lumbini Province Dhanendra Karki; Minister for Economic Affairs of Karnali Province Rajiv Bikram Shah; and Minister for Economic Affairs of Sudurpaschim Province Bahadur Singh Thapa.

“The federal government’s annual budget has grown steadily, but fiscal equalization grants to provinces have not kept pace,” the ministers said. “We urge the federal government to increase the grant proportionally, ensure transparency in allocation, and refrain from reducing any form of grants during the fiscal year.”

The gathering discussed the financial challenges faced by provinces, including delayed budget disbursement, limited revenue authority, and frequent changes in grant formulas. The provincial economic affair ministers added that unpredictable grant flows were disrupting essential service delivery, delaying capital expenditure, and weakening local fiscal discipline.

The ministers also raised concerns about the lack of clarity in intergovernmental fiscal transfers and the need for better coordination between federal, provincial, and local governments. They stressed that fiscal equalization grants should be distributed based on clear, evidence-based criteria that reflect population size, development needs, and geographic disparities.

The meeting also called for reforming the existing fiscal transfer system to strengthen fiscal autonomy at the subnational levels. The ministers urged the National Natural Resources and Fiscal Commission (NNRFC) to play a more active role in ensuring equitable resource distribution and monitoring compliance with constitutional principles of fiscal federalism.

The joint gathering concluded with a commitment from all seven provinces to present a unified stance on fiscal decentralization in future discussions with the federal government.

The Westerly wind has its partial influence over Nepal at present, according to the Meteorological Forecasting Division.

The Division stated that the weather will be generally cloudy in the hilly areas of the country including Lumbini, Karnali and Sudurpashchim Provinces while it will be partly cloudy in the remaining areas this afternoon.

Similarly, there are chances of light to moderate rainfall and snowfall at a few places in the hilly region of Gandaki, Lumbini, Karnali and Sudurpaschim Provinces, and at one or two places in the hilly region of the rest of the provinces. There is a possibility of light rainfall at one or two places of the Tarai region of Lumbini and Sudurpaschim Provinces.

The Division stated in a press release today that the weather will be generally cloudy in the hilly areas of the country including Bagmati, Gandaki and Lumbini Provinces, while the weather in the rest of the areas will be partly cloudy.

There is a possibility of moderate rainfall and snowfall in some places of the hilly and mountainous areas of Gandaki, Lumbini, Karnali and Sudurpaschim Provinces and in one or two other hilly areas, the Division said.

The government has directed the Ministry of Foreign Affairs to recall Nepali ambassadors from 11 countries and assign them duties with the ministry.

The government's move comes after the Supreme Court on Sunday issued an interim order against the government's decision to recall Nepal's ambassadors from 11 countries.

The ministry stated that the government has sent a letter on Monday, requesting the recall of ambassadors from 11 countries.

Ministry's spokesperson Lok Bahadur Paudel Chhetri said the ministry received the letter on Monday.

A meeting of the Council of Ministers held on October 16 had decided to recall the 11 ambassadors who had received political appointments by November 6.

A writ was filed in the Supreme Court claiming that the government's decision was not lawful.

After the preliminary hearing of the case, the Supreme Court issued an interim order to the government on Sunday not to implement the decision.

The Nepali film Hostel 3, the third installment of the popular Hostel franchise, has crossed borders and won hearts in India, marking another milestone for Nepali cinema. After achieving a record-breaking 51-day run in Nepal, the film has now replicated the same success in India.

According to Indian distributor Suraj Khadka, Hostel 3 has completed 51 consecutive days of screening at the SVF Cinema, Rink Mall in Darjeeling, where it has been showing since Sept 5. The film was distributed in India by Gorkha Film Production and Super Cinema, reaching over 50 theaters across Sikkim, Darjeeling, Siliguri, Guwahati, Assam, and Manipur.

Director Sashank Kandel expressed his delight at the film’s achievement across the border. “First of all, I want to thank Durgesh Films for trusting and permitting the production of such a large franchise,” he said. “I am equally grateful to everyone involved in production, distribution, and promotion for making this possible.”

Hostel 3 portrays the ups and downs of campus life, exploring themes of love, friendship, and struggle—making it particularly popular among the youth. The film features Paras Bam Thakuri (Kulboy), Rihan Giri, Padam Tamang, Ashish Ghimire, Simran Pant, Hena Nagarkoti, Sama Parajuli, Umar Khan, Santosh Baniya, and Ashish Purush in key roles.

The film’s writer and associate director is Madhav Sharma, with Suresh Kandel and Govinda Adhikari serving as producers. The co-producers include Shishir Gyawali, Anish Sigdel, and Kundan Gupta. Shankar Koirala is the executive producer, and Kosis Raj Kshetri worked as the line producer.

Following its commercial success, Hostel 3 is now available for streaming on Cinemaghar App. Viewers can watch the movie via Google Play Store, App Store, Android TV, Amazon Fire TV, Samsung Smart TV, and LG WebOS, or through web browsers and Chromecast on their computers.

The first-ever Kathmandu Horror Film Festival (KHFF) concluded on Sunday evening, marking a milestone for Nepal’s film industry. Organized by the Nepal Film & Cultural Academy, the three-day festival celebrated horror cinema as a form of art and cultural expression, bringing together filmmakers and audiences from across the world. Featuring 25 films from 15 countries, KHFF showcased a powerful blend of creativity, emotion, and storytelling that pushed the boundaries of the genre and elevated Nepal’s cinematic identity on the global stage.

Academy Vice-president Shiv Puri said the festival was an effort to use film as a medium to connect culture, messages, and creativity. He noted that this event had opened the door toward achieving that goal, setting the foundation for greater collaboration between Nepali and international filmmakers.

The festival opened with Shaman, a visually mesmerizing Russian film directed by Mikhail Merzlikin, which drew viewers into the mystical world of a Siberian village where the lines between spirits and humans blur. Set on the banks of the Yenisei River, the film follows a shaman who guides villagers between the spirit and human realms from his yurt, watched over by an unseen female spirit. The screening was praised for its poetic portrayal of ritual, desire, and faith. The grand opening ceremony saw the presence of diplomats, filmmakers, and cultural figures who hailed the festival as a bold and refreshing step for Nepali cinema.

The first day of KHFF offered a journey into psychological and emotional horror. A Year of Marriage (Mexico), directed by Pablo Camargo Lopez, explored love and decay as a newlywed couple receives a mysterious creature as a wedding gift, testing the fragility of their relationship. The Leopard (India), directed by Mukti Krishan, portrayed the fear and paranoia of urban life after a leopard’s intrusion leaves a boy deeply traumatized. The day closed with Labinak (Indonesia) by Azhar Kinoi Lubis, a gripping cannibalistic horror film about a teacher who uncovers an ancient ritual tied to a powerful foundation. The film went on to win Best Feature Film at KHFF 2025.

The second day balanced international narratives with Nepali originality. Khel (Nepal), directed by Anurag Pradhan and Astha Shrestha, told the story of a group of girls revisiting their haunted dormitory to finish an unfinished game, blending friendship, guilt, and the supernatural. Another Nepali film, Down by the Riverside, directed by Anuska Anada, offered a minimalist yet haunting portrayal of a father whose peaceful day by the river turns into a surreal journey through the unknown. The Indian film Bokshi, directed by Bhargav Saikia, became one of the festival’s most talked-about screenings for its meditation on myth, superstition, and womanhood. It later received the Jury Special Award for its cultural and visual brilliance.

The final day featured two powerful titles—The Ritual (Nepal) and Foreigners Only (Bangladesh). Directed by Bishal Roka Magar, The Ritual follows a man’s rebellion against sacred traditions and the terrifying spiritual consequences that follow. Foreigners Only, directed by Nuhash Humayun, told the story of a homeless tannery owner’s desperate fight against urban discrimination in Dhaka. Its gripping metaphorical horror earned Humayun the Best Youth Filmmaker Award.

In addition to Labinak winning Best Feature Film, A Year of Marriage (Mexico) took home the Best Short Film Award, while Bokshi (India) received the Jury Special Award. The festival’s organizers expressed their satisfaction with the enthusiastic audience turnout, calling it “beyond expectations.” Viewers praised KHFF’s professional execution and its unique focus on horror as a serious cinematic art.

Over three thrilling days, KHFF captivated local and international audiences with its diversity of themes, ranging from emotional trauma to folklore and superstition. Audience members described the festival as “a hauntingly beautiful experience” and “a new identity for Nepali horror cinema.” The Nepal Film & Cultural Academy extended heartfelt thanks to sponsors, filmmakers, volunteers, and attendees for their contribution to the festival’s success.

Vice President Ram Sahay Prasad Yadav has been assigned to perform works, duties and responsibilities of the President in absence of President Ram Chandra Paudel.

President Paudel left for Qatar this morning to participate in the Second World Summit for Social Development to be held in Doha, Qatar, from November 4-6.

The Vice-President was designated to perform the President's functions in accordance with Article 67 (2) of the Constitution, reads a press release issued by Spokesperson at the Office of the President, Pradip Kumar Koirala.

The Financial Action Task Force (FATF) has retained Nepal on its Jurisdiction under Increased Monitoring list, commonly known as the gray list, citing persistent strategic deficiencies in the country’s anti-money laundering (AML) and counter ­terrorist financing (CFT) regime.

Issuing a statement after its plenary session last Friday, the global watchdog said while Nepal made a high-level commitment to strengthen its AML/CFT framework earlier this year, the progress has not been sufficient to warrant removal from the gray list. It said Nepal should continue to work on implementing its action plan to address its strategic deficiencies.

After the plenary, the FATF has said that Nepal most improve its understanding of money-laundering and terrorist-financing risks remains limited; enhance supervision of higher-risk sectors such as banks, cooperatives, casinos, real-estate and dealers in precious metals and stones; and demonstrate the identification and sanctioning of materially significant illegal hundi providers without affecting financial inclusion.

Additionally, Nepal has been told to increase capacity and co-ordination of competent authorities to conduct money laundering investigations; demonstrate an increase in such investigations and prosecutions; demonstrating measures to identify, trace, restrain, seize, and, where applicable, confiscate proceeds and instrumentalities of crime in line with the risk profile; and address technical compliance deficiencies in its targeted financial sanctions regime for terrorism financing and proliferation financing.

Nepal had previously exited the gray list back in 2014 after a roadmap of reforms was implemented. Earlier in February, the government had signaled strong political commitment to bolster its AML/CFT systems. Despite some legislative progress, implementation has remained uneven and structural reform has lagged. In particular, Nepal's regulatory oversight of non-financial businesses, beneficial-ownership transparency and enforcement action remain deficient.

About three years ago, the Asia Pacific Group on Money Laundering (APG) conducted a Mutual Evaluation Report on Nepal’s system for preventing money laundering and terrorist financing, and submitted its findings to the Financial Action Task Force (FATF).

The APG’s annual plenary meeting, held in Vancouver, Canada, from 9-14 July 2023, endorsed Nepal’s mutual evaluation report. Based on that assessment, the FATF in Oct 2023 placed Nepal under a one-year observation period. During the assessment, it  identified 40 areas for improvement.

Nepal was expected to implement the FATF’s recommendations and demonstrate progress sufficient to avoid being placed on the gray list during this period. However, the country failed to make significant improvements within the one-year timeframe, leading to its eventual placement on the gray list.

Although being on the FATF’s gray list does not automatically impose sanctions, it acts as a red flag to the international financial community. Banks, foreign investors and correspondent-banks tend to apply heightened due diligence when dealing with entities in gray-listed jurisdictions. 

Building trust through strong anti-money laundering and countering the financing of terrorism frameworks will be critical for Nepal as it seeks to maintain international financial credibility and attract foreign capital.

More red pandas were found in the Jaljala, Muna and Mareni areas of Ward No 2 and 3 of Dhaulagiri Rural Municipality.

For this, three 'cameras' were installed in the area, and two of them captured the images of red pandas.

"The cameras were set up after discovering red panda droppings during a month-long field study. Our study has confirmed that there are between 6 to 25 red pandas residing in that area," said Pawan Rai, Programme Officer at the Nepal Biodiversity Conservation Society.

A team of researchers along with local residents conducted an on-site study to determine the presence of red pandas in Khibang, Mudi, Archey, Dar, Takam, Bagar, Simkosh, Italy Base Camp, Mareni, Lulang, Gurjakhani, and Gurja Deurali areas of Dhaulagiri.

The locals had released photos and videos showing the red panda at Gurjaghat of Dhorpatan Hunting Reserve in Ashoj 2080 and at Bancharedanda area of Dahapatal Community Forest area of Muna in Mangsir 2081.

In 2073 BS, researchers from the Red Panda Network and the Himalayan Conservation Forum found red panda poo in Mareni, located in the Jaljala area. The study was conducted with the financial support from the World Wildlife Fund and the Hariyoban Program.

Researcher Larisa Gautam said that income and employment opportunities could be promoted in the community by bringing tourists to see red pandas in this area.