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International Relations and Global Diplomacy Dialogue (IRGDD) and Nepal Chamber of Commerce (NCC) signed a Memorandum of Understanding (MoU) in Kathmandu on Tuesday.

The signing ceremony took place during NCC’s Diamond Jubilee Celebration, marking 75 years of its contribution to Nepal’s private sector development.

President of IRGDD Amb. Dr Sarmila Parajuli Dhakal and NCC President Kamlesh Kumar Agrawal signed the MoU during a formal ceremony attended by representatives from both institutions and dignitaries.

The agreement formalizes a shared vision to advance Nepal’s global economic presence through collaborative efforts in trade diplomacy, diaspora engagement, research, policy advocacy, and strategic promotion, reads a statement issued by IRGDD. 

The signing event featured the ceremonial exchange of The Diplomat Nepal magazine and the NCC publication, along with a visit to the Raj Bahadur Memorial Hall, paying tribute to NCC’s founding legacy.

On the occasion, Dr Dhakal emphasized the importance of aligning diplomacy with national economic objectives. She said that the “economy is vital to boost the country's development" and proposed that Nepal’s future lies in leveraging economic diplomacy as a core tool of international engagement.

Introducing the term “Eco-politics,” she added that the economy now leads politics in shaping global agendas. She also underscored the need to improve the marketability of Nepali products through enhanced quality control, adherence to global standards, and better promotion.

NCC President Agrawal echoed this vision, highlighting Nepal’s untapped economic potential in sectors like tourism, IT, hydropower, and natural resources. He pointed out that Nepal is already part of a global economic ecosystem that does not recognize political boundaries, urging stronger and more actionable engagement with the international community, according to the statement. 

The MoU outlines a five-year non-binding partnership focused on strengthening Nepal’s role in global trade and investment networks. It calls for the formation of a Joint Coordination Committee to oversee progress and conduct a mid-term review within six months. This partnership reflects a broader national commitment to contribute meaningfully to Nepal’s growth through coordinated diplomatic and private sector engagement.

Tibetan spiritual leader the Dalai Lama on Wednesday said the centuries-old Tibetan Buddhist institution will continue after his death, ending years of speculation that started when he indicated that he might be the last person to hold the role, Associated Press reported.

Speaking at prayer celebrations ahead of his 90th birthday on Sunday, the Nobel Peace Prize-winning spiritual head of Tibetan Buddhism said that the next Dalai Lama should be found and recognized as per past Buddhist traditions, while signalling that China should stay away from the process of identifying his successor.

The Dalai Lama’s succession plan is politically consequential for most Tibetans who oppose China’s tight control of Tibet and have struggled to keep their identity alive, in their homeland or in exile. It is also profound for Tibetan Buddhists who worship him as a living manifestation of Chenrezig, the Buddhist god of compassion, according to Associated Press.

The Lumbini provincial government has stopped payments 15 days prior to the end of the current fiscal year after exhausting its accumulated funds. The Lumbini Ministry of Economic Affairs and Planning has apprised the Provincial Treasury Comptroller Office of the matter.

The decision will affect many construction entrepreneurs who were expecting to receive their payments by this fiscal’s end. Most of the offices under the province have already informed construction entrepreneurs they cannot pay beyond July 9.

The provincial government has consistently adopted a deficit budget, shifting the liability to the next fiscal year. For the upcoming fiscal year 2025/26, it has proposed a deficit budget of about Rs 7bn. However, payments for schemes funded by the Government of Nepal’s conditional, special and complementary grant sources have not been stopped. These include matching funds from provincial sources in complementary grant projects; provincial contributions in foreign-funded projects under conditional grant; and provincial consolidated funds, including salaries, allowances, and operational expenses.

Payments for all other schemes were suspended from June 29.  If it is extremely necessary to spend, the ministry has issued a circular stating funds can be spent or disbursed with valid justification for doing so. The sudden freezing of accounts has affected the plans of the Ministry of Physical Infrastructure Development, which accounts for a significant portion of the development budget. The ministry has allocated a budget of Rs 9.9bn for the upcoming fiscal year.

After the sudden payment freeze, the Rupandehi Road Infrastructure Development Office has been unable to pay Rs 35m owed to 25 projects. “The liability had been transferred in the previous fiscal year as well,” said Office Chief and Senior Divisional Engineer Lalu Giri. “This year too, it seems that the liability will be transferred. Construction entrepreneurs are working in the field. There is a written agreement. However, there is no way to pay for them.”

Senior Engineer Deepak Khadka, chief of the Banke Road Infrastructure Development Office, said payments worth around Rs 20m are pending. “Construction entrepreneurs are demanding payments, but we have no answers,” he said.

The Pyuthan Road Infrastructure Development Office has been unable to pay Rs 10.5m for eight projects. “We had agreed to clear the payments by June 8, but the account was unexpectedly frozen,” said Senior Engineer Chandra Shah. 

The Provincial Financial Procedures and Fiscal Responsibility Act mandates closure of accounts a week before July third week. The provincial government has disregarded this provision.Sources estimate that the provincial government owes Rs 1.5bn for completed works.

The Green Climate Fund (GCF) has approved almost Rs 5 billion in grants to help Nepal reduce the growing threat of glacial lake outburst floods (GLOFs).

The 42nd Board Meeting of the GCF held in Papua New Guinea on Tuesday approved the grant assistance while recognizing Nepal's project entitled 'Protecting livelihoods and assets at risks from Glacial Lake Outburst Floods (GLOFs) and climate change-induced flooding in glacial river basins of Nepal’.

GCF's alternate board member on behalf of LDCs Dr Sindhu Prasad Dhungana, who attended the GCF meeting in Papua New Guinea, confirmed that the decision was made to approve a $36.1 million grant to help Nepal protect lives and livelihood from the risks of GLOFs. Nepal's proposal for the project was unanimously approved in the GCF Board Meeting, Dhungana shared.

He said the GCF Board Meeting endorsed 17 projects of the total 19 proposals including that of Nepal.

UN agencies have identified the GLOFs as the major and accelerating climate risk in the Himalayas. "The approval marks a new chapter in how Nepal prepares for climate threats, shifting from reacting after floods to preventing them before they happen. Led by Nepal’s Department of Hydrology and Meteorology in partnership with the United Nations Development Programme (UNDP), the new project will benefit over 2.2 million people living in Koshi and Gandaki river basins," according to UNDP Nepal.

Dhungana shared that the seven-year project is expected to be a model project to reduce the growing threat of glacial lake outburst floods.

The project aims to catalyze future public and private investment in climate risk reduction, setting an example that other high mountain countries can follow, with an additional $14 million in co-financing from the Government of Nepal, UNDP and Independent Power Producers' Association Nepal.

According to UNDP Nepal, the key components of the seven-year project include expanding and upgrading hazard monitoring and early warning systems; reducing water levels in four high-risk glacial lakes (Thulagi, Lower Barun, Lumding Tsho, and Hongu 2); strengthening riverbanks and flood-prone areas through reforestation and protective infrastructure such as check dams and vegetative gabion walls; and helping national and local authorities, first responders and communities to plan and prepare for future risks.

Likewise, UNDP has welcomed the opportunity to partner with the Government of Nepal to tackle some of the most urgent and complex climate risks facing mountain regions. “Supported by the Green Climate Fund, this initiative represents a long-term investment to protect lives and strengthen resilience where it matters most. It is climate action that is both grounded and game-changing, Kyoko Yokosuka, said UNDP Resident Representative in Nepal.

Kamal Ram Joshi, Director General of Department of Hydrology and Meteorology hoped that this project will help protect vulnerable Himalayan communities by strengthening local capacity and safeguarding lives, livelihoods, and infrastructure.

Saying that 21 glacial lakes are at high risk of outbursts in Nepal, Joshi mentioned that the CGF grant was a great achievement since it supports our efforts for risk management. The stakeholders have described this project as a significant milestone in Nepal's efforts to strengthen climate resilience.

US President Donald Trump announced Tuesday that Israel has agreed to the terms of a 60-day ceasefire in Gaza, urging Hamas to accept the proposal to avoid further escalation.

Trump said the deal, mediated with support from Qatar and Egypt, aims to halt hostilities while efforts continue to end the conflict permanently. “It won’t get better — it will only get worse,” Trump warned Hamas via his Truth Social account, according to Firstpost.

The announcement comes ahead of Trump’s upcoming meeting with Israeli Prime Minister Benjamin Netanyahu at the White House next week. Meanwhile, Israeli Minister for Strategic Affairs Ron Dermer held talks in Washington with senior US officials, including Vice President J.D. Vance and Secretary of State Marco Rubio, focusing on the Gaza ceasefire and regional security, Firstpost reported.

Under the aegis of its India-Nepal Centre and in association with Visa Inc and Banking, Finance and Insurance Institute of Nepal (BFIN), the PHD Chamber of Commerce and Industry (PHDCCI) organised “India-Nepal Fintech Summit 2025” on 30 June at New Delhi. Participated by the leading policymakers and industry leaders from both India and Nepal, the Summit hosted meaningful dialogues to come forward for further enhancing India-Nepal bilateral cooperation in the financial technology (fintech) domain. This also paves the way of recognising Community Engagement, Social/Financial/Digital Inclusion & Diversity and Social Impact as major transformational attributes of payment innovation drive.

Speaking on the occasion, Amb Dr Shankar Prasad Sharma, Ambassador of Nepal to India, said: “Nepal has made impressive progress in FinTech, driven by the growing need for mobile banking and digital services. There's strong momentum, but to move forward, we must act quickly-beyond signing MOUs-to implementation. Coordination between ministries is crucial, and improving systems for digital service exports, taxation, and international payments will help us unlock our full potential.”

Amb Munu Mahawar, Additional Secretary (North), Ministry of External Affairs, Government of India, said: “India and Nepal share a very special relationship, rooted in history, culture, and a unique treaty framework. We deeply appreciate PHDCCI India-Nepal Centre for its constant support in promoting India-Nepal economic ties. With Nepal's special access to the Indian market and our shared commitment, I'm confident our partnership will continue to grow and flourish in the years ahead.”

Anand Jha, Vice President (Head of Government Engagement: India & South Asia), Visa Inc, said: “The idea for this seminar stemmed from my visit to Nepal, where I saw a real need for guidance and mentorship. Startups don't need rocket science-they need the right mentor and direction. Nepal, especially in the digital payments space, has a huge untapped market for fintech innovation. India has walked a similar path, and thanks to bold private initiatives and institutional support like Startup India.”

Vaibhav Taranekar, Vice President (Client Services), Visa Inc, said: “Fintech is now an integral part of the financial ecosystem across South Asia. While many initially believed they could operate alone, today, everyone wants to be part of the fintech experience. The biggest transformation has been in empowering merchants optimizing their digital footprint, made possible only through fintech. Its success lies in the spirit of collaboration that has turned fintech into a true support system.”

The “India-Nepal Fintech Summit 2025” was chaired by Amb Manjeev Singh Puri, Chair, India-Nepal Centre, PHDCCI & India’s Former Ambassador to Nepal and moderated by Atul K Thakur, Secretary, India-Nepal Centre, PHDCCI. Among others, it was addressed by: Md. Alam Ansari, Deputy Director (Startup India), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India; Dr Jatinder Singh, Deputy Secretary General, PHDCCI; Anukool Bhatnagar, Adviser, India-Nepal Centre, PHDCCI & Former MD & CEO, Nepal SBI Bank Ltd (NSBL); Jyoti Prakash Gadia, Co-Chair, BFSI Committee & Managing Director, Resurgent India Ltd; Diwas Sapkota, CEO, Fonepay; Pranaya Rajbhandari, CEO, FOCUSONE Payment Solutions (MOCO – Digital Wallet); Dr Binod Atreya, Managing Director, Banking, Finance and Insurance Institute of Nepal (BFIN); Dushyant Thakor, Deputy Executive Director, World Association of Investment Promotion Agencies (WAIPA); Dr Seema Sharma, Professor (Economics), Department of Management Studies, IIT Delhi; Dr Jayanthi Ranjan, Vice Chancellor, Sharda University (Agra); Dr Deepak Tandon, Senior Professor (Finance), Jaipuria School of Business; Shishir Sinha, Associate Editor, The Hindu Business Line; Shashvat Singh, Senior Fellow, India Foundation; Aniruddha Shanbhag, Director, Koan Advisory Group; Mahesh Kumar Agrawal, Bihar State Coordinator, Seema Jagran Manch; Atul Koirala, Board Member, BP Koirala India-Nepal Foundation & Techno-Entrepreneur; Bikas Rauniar, Executive Director, Interstate Multi Modal Transport (P) Ltd

India and Nepal have made significant strides in fintech collaboration, particularly through the integration of India's Unified Payments Interface (UPI) with Nepal's payment systems. This partnership aims to enhance cross-border digital transactions, promote financial inclusion, and strengthen economic ties between the two nations. In June 2023, the National Payments Corporation of India’s international arm (NIPL) and Nepal Clearing House Limited (NCHL) signed a Memorandum of Understanding (MoU) to integrate India's UPI with Nepal's National Payments Interface (NPI). This has eased the cross-border fund transfers and merchant payments between the two countries, however, recognising the challenges are important for broader fintech collaboration. Nepal lacks a comprehensive regulatory framework and a strong investor network to fully support fintech growth. Still, the nation has laid important groundwork that could enable fintech innovations to play a pivotal role in driving broader economic progress in the years ahead. Beyond digital payments, India and Nepal should explore collaborations in other fintech areas with focus on expertise and scale for payment innovations including Electronic Real-Time Payments, Investment Banking and Fintech Ecosystem Development.

The policy recommendations of the Summit shall support the ongoing efforts to make the payment systems between India and Nepal smooth and thus making the businesses and lives reaping their benefits for greater common good.

Russia has imposed restrictions on 15 European media outlets in response to EU sanctions on several Russian publications. The Russian Foreign Ministry said the move was a countermeasure to the EU’s 16th sanctions package introduced in February.

The ministry stated that the restrictions target media accused of spreading disinformation. It added that the decision may be reconsidered if the EU lifts its ban on Russian media, according to Xinhua.

US President Donald Trump on Monday signed an executive order lifting most sanctions on Syria, marking a significant shift in US policy following the ouster of former Syrian President Bashar al-Assad in December 2024.

The order ends five previous executive sanctions and authorizes relaxed export controls and foreign aid to Syria. However, sanctions will remain in place against Assad, his associates, and entities linked to terrorism, human rights abuses, and chemical weapons, according to Xinhua.

The Treasury Department issued a general license allowing transactions with Syria’s interim government and state-owned enterprises. Secretary of State Marco Rubio has been tasked with exploring sanctions relief at the UN and reviewing Syria’s terror designations.

The Trump administration said it will continue monitoring Syria’s progress on normalization with Israel and counterterrorism efforts, Xinhua reported.