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The CPN (Unified Socialist) would not join the new government.

Leader Metmani Chaudhary said that the party would support the government based on its merits and demerits.

The CPN (Unified Socialist) has directed its lawmakers to vote in favor of the government led by Prime Minister Pushpa Kamal Dahal. 

PM Dahal is scheduled to seek a vote of confidence in the Parliament today.

The CPN (Unified Socialist) has 10 lawmakers in the House of Representatives. 

On July 9, the Executive Board of the International Monetary Fund (IMF) completed the fourth review under the four‑year Extended Credit Facility (ECF) for Nepal, allowing the authorities to withdraw the equivalent of approximately $41.3m. This brings the total disbursements under the ECF for budget support thus far to about $247.7m.

The ECF arrangement for Nepal was approved by the Executive Board on 12 Jan 2022, for 180 percent of quota, or about $371.6m. Nepal has made good progress with the implementation of the program, which has helped mitigate the impact of the pandemic and global shocks on economic activity, protect vulnerable groups, and preserve macroeconomic and financial stability. The program is also helping to catalyze additional financing from Nepal’s development partners.

The economy continues to face challenges as growth, projected around three percent in FY2023/24, remains below potential in the context of subdued domestic demand and post‑pandemic balance sheet repairs. Economic activity is expected to pick up, with growth reaching 4.9 percent in FY2024/25, supported by stronger domestic demand. The cautiously accommodative monetary policy stance, planned increase in capital expenditure in the FY2024/25 budget, additional hydropower generation, and a continued increase in tourist arrivals are expected to boost domestic demand and growth. Inflation is expected to remain within the Nepal Rastra Bank’s (NRB) target ceiling of 5.5 percent.

Domestic risks dominate the outlook. Failure to raise the execution rate of capital projects would deprive the economy of much-needed stimulus and weigh on growth. Fragile political stability could disrupt policy continuity and reform implementation. Intensification of financial sector vulnerabilities, such as a further rise in NPLs or more failures of cooperative lenders, could endanger banking system soundness. Externally, high commodity prices could slow the recovery in energy-intensive sectors. Nepal remains vulnerable to natural disasters.

Nepal’s economic reforms progress

Bo Li, deputy managing director and acting chair

Nepal has made significant strides in its economic reform agenda. Decisive actions in monetary policy, bank regulation, and phasing out Covid-19 support policies played a major role in overcoming urgent balance of payments pressure in FY2021/22. Reserves continue to rise without the need for distortive import restrictions. Fiscal discipline was maintained in FY2022/23 and so far in FY2023/24, despite revenue shortfalls. Bank supervision and regulation have improved with the implementation of new supervisory information systems, the Working Capital Loan Guidelines, and Asset Classification Regulations. Nepal’s medium-term outlook remains favorable as strategic investments in infrastructure, particularly in the energy sector, are expected to support potential growth.

With growth below potential, executing the planned increase in capital spending, as envisaged in the FY2024/25 budget, while maintaining fiscal discipline through domestic revenue mobilization and rationalization of current spending, remains critical to boosting growth and preserving medium-term fiscal sustainability. Strengthening public investment management will support the needed boost to capital spending. Enhancing fiscal transparency will help contain fiscal risks and further strengthen medium-term fiscal sustainability.

As monetary policy transmission is still weak in the context of balance sheet repair, a cautious and data-dependent monetary policy remains appropriate to preserve price and external stability. Continuing to strengthen Nepal’s financial system remains a top priority. Financial policy should remain vigilant and focused on building regulatory frameworks that promote sustainable credit growth while proactively addressing emerging vulnerabilities in the savings and credit cooperatives sector. Maintaining recent reforms regarding lending practices and asset classification is important as preparations for the loan portfolio review of the ten largest banks continue.

Nepal’s commitment to strengthening its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework is commendable. Amendments to a set of fifteen laws, including those on money laundering, have been recently enacted, and secondary legislation is under preparation to bring Nepal’s AML/CFT legal framework in line with international standards. It remains critical to ensure the effectiveness of the new legal framework. Reforms to implement the 2021 IMF Safeguards Assessment recommendations regarding the NRB Act and NRB audit are a priority.

Continued progress on the structural front remains necessary to foster investment and more inclusive growth. This includes improving the business climate, building human capital, and continuing to enhance social safety nets, particularly aiming for the full execution of the child grant budget, followed by an expansion of the program to all districts in Nepal.

The price of gold has increased by Rs 1,800 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 146, 700 per tola today. It was traded at Rs 144, 900 per tola on Thursday.

Similarly, tejabi gold is being traded at Rs 146, 600 per tola. It was traded at Rs 144, 200 per tola.

Meanwhile, the price of silver has increased by Rs 15 and is being traded at Rs 1,885 per tola today.

An aircraft of Buddha Air with 59 people on board skidded off the runway at Gautam Buddha Airport while landing last night. 

The plane with call sign 805 skidded off the runway while landing from the east to west of the airport at 9:30 pm on Thursday.

It is said that the plane got stuck in the mud, Spokesperson of the District Police Office, Rupandehi, Manohar Prasad Bhatta said.

Bhatta added that all passengers were evacuated safely from the plane. The plane had 59 people on board including four crew members.

Deputy Superintendent of Police Bhatta said that the Gautam Buddha Airport is closed now as the plane is on the runway.

A team of technicians from Buddha Air is arriving here from Kathmandu to shift the aircraft from the runway.

Dozens of people went missing when two passenger buses plunged into the Trishuli river on Friday.

The incident occurred after a landslide triggered by torrential rainfall swept away the buses into the river at Simaltal area along the Narayanghat-Mugling road section in Chitwan district, officials confirmed. The buses were carrying 65 passengers, it has been said.

Chief District Officer of Chitwan, Indra Dev Yadav, confirmed that two vehicles fell into the river at 3:30 this morning.

According to Yadav, a bus of Ganapati Deluxe heading to Gaur of Rautahat from Kathmandu was carrying 41 persons and the next bus on its way to Kathmandu from Birgunj had 24 persons on board.

The Chief District Officer, who is on the site, said that the rescue workers have started clearing the debris.

Yadav said details of the accident are awaited.

Vehicular movement along with the Prithvi Highway has been obstructed following landslides in different places of Tanahun district.

The landslides occurred at Yampa in Bandipur Rural Municipality-5, at Ghasikuwa in Byas Municipality-12 and at Mauriodar in Myagde Rural Municipality-6 in the district, the Deputy Superintendent of Police (DSP) Dipak Raya said.

The District Police Office, Tanahun, said that the debris of the landslides is being cleared with support from the construction company of the Mugling-Pokhara Road Project.

Likewise, 40 houses at Tallo Simaltar in Byas Municipality-4 were inundated after the swollen Buldikhola (river) entered the human settlement.

A couple died after a landslide buried their house at Takam Village in Dhaulagiri Rural Municipality-7 of Myagdi district on Friday.

Assistant Police Inspector of Takam Police Post Ramesh Prasad Adhikari said that Tul Prasad Neupane and his spouse Bal Kumari Neupane died after a landslide triggered by incessant rainfall buried their house this morning.

Nine persons including seven of a single family died in different incidents of landslides that occurred in Kaski district on Thursday.

Two others are missing in the landslides.

Seven members of Kul Bahadur Pariyar's family died on the spot at Tallakot in Puranchaur of Pokhara Metropolitan City-19, spokesperson of Kaski Police and Deputy Superintendent of Police (DSP) Basanta Kumar Sharma said.

The deceased have been identified as Kul Bahadur Pariyar (47), his mother Laxima (85), his wife Mana Kumari (43), three daughters Radhika, Prashana, and Prava and son-in-law Asmit Pariyar lost their lives in the tragic accident.

It has been learnt that the landslide occurred at 10:30 last night when all of them were at a family gathering.

Likewise, 18-year-old Anita Ojha and nine-year-old Pratik Subedi died after a landslide occurred at Chainpur in Pokhara Metropolitan City-19.

Police said that Anuska Ojha (11) is missing in the landslide. 

Likewise, 80-year-old Maiti Kumari Gurung is also missing in a landslide that occurred in Madi Rural Municipality-11 in Kaski district last night.