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Institutional income tax collection has declined over the first six months of the current fiscal year 2024/25. The half-yearly review of the budget for the fiscal year 2024/25 released recently by the Ministry of Finance shows income tax collection from institutional taxpayers fell by 11.9 percent to Rs 63.79bn. Such collection was Rs 69.04bn in the review period of the previous fiscal year. This is mainly due to reduced tax contributions from government-owned enterprises and public limited companies.

Institutional income tax refers to the tax paid by companies and institutions to the government. If these entities generate higher profits, their tax contributions typically increase and vice versa.  Total income tax collection over the first six months of  2024/25 increased by 2.47 percent to Rs 139.2bn.  Data shows although private limited companies have shown a significant increase in tax contributions, the decline in payments from government entities and public limited companies has impacted overall institutional tax collection.

According to the mid-term review of the fiscal budget, tax contributions by government companies fell by 18.15 percent to Rs 3.58bn, while those from public limited companies dropped by a whopping 35.29 percent to Rs 26.51. In the review period of the previous fiscal year, government companies and public limited companies had contributed Rs 4.38bn and Rs 40.51bn as income tax to state coffers. 

Income tax contribution by private limited companies, however, grew by 36.67 percent to Rs 26.46bn. Likewise, such contributions by other companies increased by 7.91 percent to Rs 7.53bn. Individual income tax collection increased by 21.18 percent to Rs 50.99bn, while income tax from investment also went up by 10.74 percent to Rs 27.37bn.  Finance ministry officials say the decline in institutional income tax collection is largely due to reduced revenues in the telecommunications sector. Additionally, the decrease in earnings of government institutions and public limited companies has also contributed to this trend. 

Revenue of telecom companies have been consistently on the decline over the past few years due mainly to reduction in revenue from international calling. Similarly, the net profit of banks decreased by 4.62 percent in the second quarter of the current fiscal year. Financial reports for the second quarter of 2024/25 shows that out of 20 commercial banks in the country, only 11 reported growth in profit. 

Despite high liquidity in banks, banks have not been struggling to extend credit. Slow credit growth and rising non-performing loan (NPL) levels have hit both revenue and profitability of banks. Interest income of Class ‘A’ banks, for example, fell by 14.7 percent in the first half of 2024/25.

With the introduction of federalism in Nepal, the policy to establish commercial bank branches in all 753 local levels to ensure financial access for every citizen has finally been completed after eight years. Although Nepal Rastra Bank (NRB) initiated this plan in 2017, one rural municipality remained without a bank branch until now. Saipal Rural Municipality in Bajhang, located in Sudurpaschim Province of far west Nepal, officially inaugurated its first bank branch on Monday, marking the completion of this initiative. The branch was opened by Everest Bank under the supervision of NRB Governor Mahaprasad Adhikari.

Until now, the absence of a bank in Saipal Rural Municipality forced residents, including elderly individuals, to undertake arduous three- to four-day journeys to the district headquarters, Chainpur, to access their old-age allowances. The bank had previously cited extreme remoteness and a lack of infrastructure as reasons for not opening a branch.

Saipal Rural Municipality is one of the most remote regions in the far west, unlike other municipalities connected by roads. The hilly terrain makes travel between villages time-consuming, with journeys between settlements taking an entire day. Additionally, the area has a sparse population; according to the 2018 census, only about 2,650 people reside in the municipality. Due to the lack of roads and a low population, banks initially proposed handling all government transactions, including social security payments, through Jaya Prithvi Municipality instead of opening a local branch.

In the fiscal year 2021/22, three local levels nationwide lacked commercial bank branches, including remote areas in Dhading and Junichande Rural Municipality of Jajarkot. However, by June 2022, bank branches had expanded to 752 local levels, leaving Saipal as the only remaining location without one. Now, with the establishment of a branch in Saipal, NRB spokesperson Ramu Poudel confirms that financial access has been achieved at all local levels.

Poudel acknowledged the difficulty of opening a bank branch in such a remote area but emphasized that Everest Bank has now provided access where local infrastructure allows. Reaching the new branch in Dhalaun, a village in Saipal Rural Municipality, is itself a challenge. From Chainpur, Bajhang’s district headquarters, one must take a three-hour jeep ride to Talkot, followed by a seven- to eight-hour trek to Dhalaun.

The administrative center of Saipal Rural Municipality is in Kanda, which requires an additional six- to seven-hour walk from Dhalaun. Given this geographical difficulty, the bank opted to establish its branch in Dhalaun rather than Kanda, ensuring relatively better access for residents.

To promote financial inclusion, the government had previously introduced the ‘One Person, One Account’ campaign. Under the federal structure, NRB directed commercial banks to ensure at least one branch was established at every local level. However, complaints persisted from residents of remote areas who were forced to travel long distances to access banking services for everything from old-age allowances to salary payments for government employees.

Former chairperson of Saipal Rural Municipality, Rajendra Bahadur Dhami, had previously stated that banks were aware of the region’s geographical challenges, including the high cost of house rentals, but still hesitated to open branches. The absence of banking services meant that some transactions in the village were conducted informally, and elderly residents had to endure 70-kilometer treks to the district headquarters just to collect their social security allowances.

Bankers had long resisted expanding to such remote areas due to the lack of essential infrastructure, including roads, electricity, internet connectivity, and secure office buildings. Many banks submitted formal letters to NRB citing these logistical challenges. In response, NRB implemented a round-robin system to ensure all commercial banks contributed to financial expansion across Nepal’s remote regions.

To expedite the process, NRB placed significant pressure on commercial banks to establish branches in all local levels. A lottery system was introduced, dividing responsibilities among the 27 commercial banks operating at the time. Under this system, Everest Bank was assigned the task of opening a branch in Saipal, Bajhang.

As of December 2024, Nepal had 107 banks and financial institutions, including microfinance entities. Among these, 20 were commercial banks, 17 development banks, 17 finance companies, 52 microfinance institutions, and one infrastructure development bank. The number of bank branches, including microfinance institutions, had reached 11,530 by July 2024 and increased to 11,545 by January 2025. With the addition of the Saipal branch, financial inclusion has now extended to every local level in Nepal.

The opening of the bank branch in Saipal represents a significant milestone in Nepal’s journey toward financial accessibility, particularly for marginalized and remote communities. While challenges remain, this achievement marks an important step in ensuring that every Nepali, regardless of location, has access to essential financial services.

The Black-breasted Thrush has been recorded for the second time in Nepal.

A team comprising Manashanta Ghimire, President of Pokhara Bird Society, and ornithologists Hathan Chaudhary and Gopi Shrestha sighted the bird in Dharan forest in the course of carrying out a monitoring.

Ghimire said that this is the second sighting of this species of bird for Nepal. Its first recording was made three years back in Danabari of Ilam district.

Ornithologists Sanjeev Acharya, Carol Inscip and Tikaram Giri recorded the Black-breasted Thrush on March 9, 2022 for the first time.

According to Acharya, this species of bird is found in north-east India, Bangladesh, Bhutan, Myanmar, Laos, Thailand and Vietnam in the east and from China to South Korea in the north. It migrates to the lower coastal areas during winter and in the hilly regions of China during the summer.

According to ornithologist Ghimire, Dharan forest, spread over an area of about 50,000 hectares and at an altitude from 100 to 1,300 meters above the sea level in Morang and Sunsari of Koshi Province, is an important area for birds.

This forest is considered as an important forest among the 42 areas of Nepal identified by Bird Life International.

CPN (Maoist Center) Chairperson Pushpa Kamal Dahal has said that the tripartite power trade deal signed by Nepal with India and Bangladesh has become a milestone.

Chair Dahal expressed such a view during the meeting with office-bearers of Independent Power Producers' Association Nepal (IPPAN) today.

The CPN (Maoist Center)-led government had signed a tripartite power trade agreement with the Indian Prime Minister in the course of India visit during his premiership.

He shared, "I put in a lot of effort to sign power trade deals with India and Bangladesh. It is a milestone for the country's prosperity. We can fulfill the dream of prosperity by selling power to countries including India, China and Bangladesh."

Stating that there was no alternative to moving ahead by implementing the agreement of exporting power to Bangladesh via India, selling 10,000 megawatts electricity to India in 10 years and also exporting electricity to China, Chair Dahal mentioned that it was necessary to pay attention in power production for the same.

The price of gold has increased by Rs 400 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 170, 200 per tola today. It was traded at Rs 169, 800 per tola on Thursday.

Similarly, the price of silver has increased by Rs 5 and is being traded at Rs 1, 970 per tola today.

The first group of 1,000 Nepali auxiliary workers in the caregiver sector in Israel is set to depart for Israel. The visa process for the first 100 workers has already been completed, with the remaining candidates progressing accordingly.

A total of 2,112 candidates (1,156 females and 956 males), were selected through a transparent live lottery process conducted in Aug 2024 at the Population and Immigration Authority (PIBA) office in Jerusalem, Israel. The remaining 1,112 will proceed around the time the first batch has completed their process, said the Israel Embassy in a press statement. 

These workers will be employed in long-term care facilities such as geriatric homes and elderly care centers in Israel, in accordance with the government-to-government (G2G) agreement between Nepal and Israel, signed in 2020. We believe that the care, effort and friendship that they will extend to care-receivers in Israel along with Israel’s affinity and cooperation, will add layers to the foundation of already existing Nepal-Israel friendship, the Embassy of Israel in Nepal said.
It extended its appreciation to the Ministry of Labor, Employment and Social Security and Department of Foreign Employment of Nepal for their continued cooperation.
The government of Nepal and the government of Israel signed a Framework Agreement on “Temporary Employment of Nepali Workers in Specific Labor Market Sectors in the State of Israel—Auxiliary Workers in Long-Term Care Facilities” on 30 Sept 2020, and an implementation protocol on 21 Jan 2021. The first phase of 1345 Nepali auxiliary workers are already actively working in Israel. 

The Department of Roads (DoR) has finalized the Detailed Project Report (DPR) for the reconstruction of the BP highway section between Bhakunde Bensi and Nepalthok, which suffered extensive damage from floods and landslides last September

As per the DPR, the reconstruction of the 28-km stretch is estimated to cost Rs 9.66bn and is expected to take three years to complete. Meanwhile, the DoR plans to build necessary infrastructure on the damaged section so that the road is operable even during monsoon rains. 

The road section from Chowkidanada in Namo Buddha to Kaladhunga in Roshi Rural Municipality is among the worst damaged. With roads completely wiped away in different sections, the DoR has constructed diversions through the river to allow movement of vehicles. Since these diversions will be of no use during monsoon, the DoR is planning to build necessary infrastructure to make the road operable throughout the year.

The DPR prepared by the Division Road Office in Bhaktapur under the DoR states that three types of walls—RCC retaining, plum and gabion—will have to be built along the road section. Additionally, the 32-km road will be expanded to two lanes. DoR has also incorporated flood damage mitigation methods into the design.

The highway constructed with assistance from the government of Japan spans 160 km and connects Kathmandu to the central Tarai and Koshi Province. Since the highway had a width of more than one lane but less than two lanes, it was creating difficulty for two-way traffic. The DoR has now proposed widening the road to two lanes (nine meters wide) to facilitate smooth flow of traffic in both directions.

Since the highway runs alongside riverbanks, the reconstruction plan also includes scour depth protection measures to prevent river erosion beneath the road surface. This, however, is not the first time that the government considered upgrading the highway into two lanes. The government earlier conducted a study to upgrade the highway into two lanes and even sought the opinion of the Japanese government for the same. However,  the plan failed to take off due to the Covid-19 pandemic. The highway project, which began in 1996 and was completed in 2015 with Japanese assistance totaling nearly Rs 20bn, is one of Nepal's most expensive infrastructure projects. The highway links Dhulikhel on the Araniko highway with Bardibas on the East-West highway.

Nepal and India have agreed to develop a high-quality transmission line for cross border power trade.

This agreement would be a crucial deal as the Government of Nepal has set an ambitious goal to generate 28,500 megawatts of electricity by 2035.

Spokesperson and Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, Sandip Kumar Dev, the two new transmission lines will be completed by 2034/35, and the capacity of an existing transmission line will be upgraded.

A meeting of Joint Steering Committee and  JSC Secretary-Level Committee of Nepal and India, have agreed to construct the Nijgadh-Harnaiya Motihari and Kohalpur-Lucknow transmission lines of 400 KV. 

Likewise, the existing Dhalkebar-Muzaffarpur transmission line of 400 KV will be replaced with a high-capacity conductor. Currently, 800 megawatts of power are being imported through this transmission line.

During the meeting, a consensus was reached to import and export up to 1,000 megawatts of power. 

The 29th meeting of the Secretary-Level Joint Steering Committee held in India on February 11 was attended by Secretary at the Ministry of Energy, Water Resources and Irrigation, Suresh Acharya and Secretary of the Ministry of Electricity, India, Pankaj Agrawal.  

The two countries have already agreed to construct the Inaruwa-Purniya and Dodhara-Bareli cross border transmission lines of 400 KV.