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A new political force—the Nepali Communist Party (NCP)—has been officially announced at an event held in Bhrikutimandap, Kathmandu, on Wednesday. The announcement marks the unification of 10 different communist factions into a single party, seen as a major shift in Nepal’s left-wing politics.

During the unity declaration ceremony, it was decided that Pushpa Kamal Dahal will serve as the party’s coordinator, while Madhav Kumar Nepal will take the role of co-coordinator. The proposal, put forward by leader Mahendra Raya Yadav, was endorsed by the assembly.

Senior leader Jhalanath Khanal of the CPN (Unified Socialist) has been given third priority in the newly-formed party, following an agreement among top leaders, including Dahal, earlier on Wednesday morning. Previously, Bamdev Gautam had been designated third, but Khanal’s dissatisfaction over the unity process led to negotiations. Eventually, he agreed to join the NCP with third priority and attended the announcement ceremony. The hierarchy now places Dahal first, Nepal second, Khanal third, Gautam fourth, and Narayan Kaji Shrestha fifth.

Khanal had held talks with CPN-UML Chair KP Sharma Oli just a day earlier, expressing reservations about the unity process and even hinting at initiating party reorganization. However, he eventually sided with the Dahal-Nepal faction.

The National Unity Convention of the newly-formed NCP endorsed nine key resolutions, which include decisions on the party’s name, election symbol, property and organizational structure. The proposals, presented by leader Barsaman Pun, were approved with applause from representatives.

The key resolutions include:

1. Formation of the unified party named the Nepali Communist Party (NCP).
2. Adoption of a five-pointed star as the election symbol.
3. Recognition of all members of uniting parties as members of the NCP.
4. Integration of central committees and structures of all uniting parties under the new organization.
5. Authorization to the coordinator and co-coordinator to finalize organizational adjustments.
6. Declaration that all people’s representatives elected under previous party symbols (Maoist Center, Unified Socialist, Socialist Party and Maoist Socialist) will now represent the NCP.
7. Transfer of all movable and immovable assets of the merging parties to the NCP.
8. Endorsement of the party’s official manifesto.
9. Adoption of the party’s constitution with necessary suggestions and amendments.

At the ceremony, leader Dev Gurung unveiled the party’s 23-point declaration, emphasizing unity and renewal in Nepal’s leftist movement.

The 23-point declarations:

1. To steadfastly uphold Nepal’s national sovereignty, territorial integrity, dignity, and independence.
2. To work with honesty, loyalty, and dedication toward the nation and its people.
3. To remain firm in the universal truths of Marxism-Leninism and apply them creatively according to Nepal’s specific conditions.
4. To remain committed to the socialist revolution and program, and to move firmly toward achieving the great goal of establishing scientific socialism as envisioned by the party since its inception.
5. To remain committed to democratic republicanism, protect the achievements of the people’s revolution, and work toward strengthening the republic and reforming and restructuring all state organs as necessary.
6. To defend the current Constitution of Nepal while taking proactive initiatives to introduce progressive reforms in the governance system, electoral process, federal structure, and by reducing the number of local levels and representatives.
7. To continuously strive to end corruption, irregularities, and delays, and to promote good governance, transparency, social justice, and national prosperity.
8. To take effective initiatives to establish a high-level, empowered Property Investigation Commission to investigate the assets of all individuals who have held public office and take strict action against the corrupt.
9. To make public service delivery efficient, fast, and effective, and to ensure public access to basic services such as education and health.
10. To fight against all forms of exploitation, oppression, injustice, discrimination, inequality, and social distortions present in the current Nepali society.
11. To struggle for ensuring the rights of women, Dalits, the oppressed, minorities, marginalized communities, indigenous nationalities, and all classes, castes, and regions excluded from the state’s mainstream.
12. To prioritize research and development and advance the overall development of the nation.
13. To take special initiatives to develop an independent and self-reliant economy, create employment opportunities, and eradicate poverty.
14. To work toward the economic, social, and cultural transformation of Nepali society by prioritizing the development of agriculture, industries based on domestic raw materials, tourism, and hydropower through well-planned strategies.
15. To conduct development campaigns that ensure the conservation and sustainable use of natural resources.
16. To remain committed to formulating climate change and environment-friendly development plans and to effective disaster management.
17. To raise the voices of the people and stand with them in their joys and sorrows.
18. To address the issues and aspirations of the GenZ generation.
19. To review past activities comprehensively, correct shortcomings, and move ahead with broad improvements, restructuring, and transformation in working style.
20. To strengthen internal democracy within the party and develop and implement a scientific system for leadership development and transfer.
21. To engage all party leaders and cadres in productive and labor-oriented work.
22. To strictly adhere to communist conduct, discipline, and ethics.
23. To adopt a simple and transparent lifestyle and working approach.

Addressing the event, Coordinator Dahal has credited the GenZ movement for playing a crucial role in forging unity among ten communist factions. He said the sacrifices made by the GenZ protesters exposed the weaknesses within political parties and inspired them to reform.

“The GenZ youth, who came to the streets on Sept 8 demanding good governance and stability while opposing corruption and political disorder, deeply struck us. Their movement made us realize our shortcomings,” he said. “Their sacrifices inspired us to correct our mistakes and begin a new campaign for transformation.”

Paying repeated tributes to the “martyrs of the GenZ movement,” Dahal said their role was instrumental in pushing the communist leaders toward unity. “Had they not made those sacrifices, we might not have realized our weaknesses and initiated this new phase of unity so soon,” he said. He further pledged that the new party will prioritize the aspirations and needs of the youth not only in the party structure but also in state institutions. “This is a historic commitment and a moment of self-reflection for us,” he added.

Calling Wednesday a “historic day” for the communist movement, Prachanda said, “Possibly, this is the first time that ten different communist groups have united at once. This unity, formed by leaders who have gone through ideological struggles in their respective fronts, is truly unprecedented.” He claimed that the day would be remembered as a milestone in Nepal’s communist and political history. “It is not only historic from the perspective of communist unity but also as a foundation for national unity to resolve the current political crisis,” he said.

Dahal further asserted that no one can stop the newly formed Nepali Communist Party from becoming the country’s number one political force. “Now, no one can stop this party from being the number one party in Nepal. Some reactionaries may lose sleep over it—let them. We will take this unity declaration campaign across the country,” he said. He also urged for humility despite the success. “While appealing for electoral mobilization and national support, we must not fall into arrogance,” he added.

Dahal emphasized that the party has no alternative but to correct its weaknesses. “We will take all advice and criticism seriously. There is no alternative to correcting our flaws and going among the people with full dedication,” he said.

Meanwhile, Co-ordinator Madhav Kumar Nepal appealed to the GenZ generation and social activists to join hands with the new party. “We are ready to work together with the GenZ generation for social justice, good governance, and against corruption,” he said, revealing that several GenZ leaders had joined the party earlier that morning. “I want to congratulate those who joined us and call upon other GenZ friends—let’s move forward together, hand in hand, against corruption, for good governance, and to correct the distortions seen in society and politics,” Nepal said.

He also expressed willingness to collaborate with social activists. “They shoulder great responsibility. We want to move forward with all campaigners working for social change, good governance, and the prosperity of the people,” he added.

Similarly, Narayan Kaji Shrestha stated that the new unity should serve as a foundation for comprehensive integration and reorganization of the communist movement. He also called for joint efforts with genuine democrats to defend the constitution, democracy, and national sovereignty, while urging ideological and cultural renewal within the party.

Meanwhile, Bamdev Gautam has claimed that the newly formed party’s membership will reach 10m. He said the party currently has around 1–1.2m members, but expects the number to rise to 10m as they reach out to the public.

Gautam also called for the introduction of a directly elected presidential system and a fully proportional electoral system. “We must end the current system that changes governments month after month and reform the state’s governance structure by establishing a directly elected president and implementing a fully proportional electoral system,” he said.

Incidents of violence and murder against women in Nepal are on the rise, revealing the persistent and systemic nature of gender-based violence (GBV) deeply rooted in patriarchal structures. According to a recent report published by the WOREC Nepal, a total of 308 cases of gender-based violence were recorded between April and June 2025 across the country.

Of these, 41 cases were documented through media monitoring, while 267 cases were directly collected from WOREC’s working areas through its primary sources. The data shows that 21 were cases of murder, and three of attempted murders.

Globally, the trend mirrors a grim picture. Reports by UN Women and UNODC show that in 2022, around 48,800 women and girls were killed by their partners or family members worldwide. The number rose to 51,100 in 2023, meaning an average of 140 women and girls were murdered every day by someone within their own family. Alarmingly, 60 percent of these killings were linked to domestic violence, deaths that occurred because the victims were women.

The WOREC report shows that most of the victims of murder were young women in their most productive years. Among the 21 murder cases recorded between April and June 2025, 29 percent (six women) were between 18 and 25 years old, while 24 percent (six women) were aged 26 to 35. Another 19 percent (four victims) were girls under 18.

These statistics underscore that women aged 18–35, who are often socially and economically active, are at the highest risk of violence. According to WOREC, this reflects a control-oriented mindset born of patriarchy, which seeks to restrict women’s autonomy over their bodies, decisions, and freedoms. 

When women assert their rights or make independent choices, patriarchal structures often respond with resistance—sometimes culminating in brutal crimes like murder.

In most cases, the perpetrators are not strangers but husbands or family members. The report reveals that 43 percent (nine women) were murdered by their husbands, and 24 percent (five women) were killed by other family members. Additionally, 10 percent were murdered by neighbors, five percent by trusted friends, and 14 percent by former husbands.

This pattern aligns with global findings that intimate partner violence remains one of the deadliest forms of gender-based violence.

Among the victims, 82 percent (17 women) were married, while 10 percent (two women) were unmarried. The marital status of nine percent of victims remains unverified. These figures highlight how domestic and intimate settings, which should provide safety and support, often turn into spaces of danger and violence for women.

On June 20, in Kailashpur, Gauriganga Municipality-7 of Kailali, a 16-year-old girl, identified as Rita (name changed), was murdered by her 20-year-old brother-in-law. Rita, who had given birth just 16 days earlier, was living with her family while her husband worked in India due to financial hardship.

According to police and family accounts, Rita returned from a health post after vaccinating her newborn and found no food prepared for her. An argument followed, and her brother-in-law, angered by her complaint, strangled her to death in the middle of the night. He later dumped her body near a drain close to the house. The next morning, neighbors discovered the body. The accused has confessed to the murder, and legal proceedings are underway.

On July 7, in Belka Municipality, Udayapur, a 27-year-old man attacked his wife, Supriya (name changed), with a knife in a public area after a domestic dispute. The couple had gone to a nearby hotel for reconciliation talks, accompanied by relatives. During the discussion, the husband suddenly stabbed his wife in the chest and fled. Supriya survived and the police are pursuing the suspect.

Similarly, on 8 Oct 2024, in Belka Municipality-8, Manju (name changed), was burned to death by her 48-year-old husband, who poured petrol on her during a domestic quarrel. Despite efforts by neighbors to save her, she succumbed to her injuries. The accused was arrested and faces murder charges.

These are not isolated incidents but symptoms of a deeply entrenched patriarchal system that values control over compassion and silence over justice. The report stresses that domestic violence is often normalized within Nepali society—seen as a “private matter” that should be settled within the home. This culture of silence and reconciliation not only emboldens perpetrators but also weakens legal enforcement, leaving survivors unprotected.

Institutional tendencies to encourage reconciliation rather than legal action further exacerbate the problem. Many survivors are pressured into withdrawing complaints or “settling” cases, allowing offenders to repeat their crimes. This fosters impunity and reinforces structural inequalities that sustain gender-based violence.

According to the Nepal Police’s 2024–25 annual report, 38 women were murdered due to domestic violence, four following rape, and two due to dowry-related disputes. These numbers underline that femicide in Nepal is not merely a result of personal disputes but a grave violation of human rights arising from persistent gender inequality.

WOREC emphasizes that zero tolerance must be maintained for all forms of gender-based violence. It calls for an environment where women can report abuse without fear or stigma, and where law enforcement ensures swift investigation and prosecution.

The Rastriya Swatantra Party (RSP), a young party that surged to prominence in 2022 by campaigning on anti‑corruption and good governance, is going through a turmoil after the Sept 8–9 GenZ protests. In the immediate aftermath of the Sept 8 protest, RSP leaders publicly endorsed the movement and affirmed full solidarity with youth demands. 

Then on Sept 9, the party distanced itself from the violence, emphasizing its participation in peaceful demonstrations and promising to cooperate with investigations. These public messages reaffirmed RSP’s anti‑establishment brand. But even as it claimed the mantle of youth’s voice, the party’s internal cohesion frayed badly.

The RSP’s top leadership was already in flux when the protests hit. Its chair, Rabi Lamichhane, is in police custody and the party’s vice‑chairman, DP Aryal, is the acting head. Lamichhane’s long‑running legal troubles persisted into 2025. He was in Nakkhu prison when the GenZ unrest erupted, and a dramatic (but ultimately unsuccessful) bid by supporters to free him became a major controversy. 

The RSP Secretariat publicly acknowledged reports that Lamichhane was released during the riots using falsified documents, and it referred the matter to the party’s disciplinary commission for investigation. 

In a Secretariat meeting, Aryal urged party figures to avoid “unverified statements” that create confusion, and stressed the need to present a “single voice” to the public. Senior party leader and vice‑chairman, Swarnim Wagle, echoed calls for discipline and announced that an extended party conclave in late October would address “leadership transition, political strategy and organizational reform” ahead of the national polls. Some RSP leaders have privately argued that Lamichhane cannot lead the party into election, given his legal limbo, although no formal resignation from him had occurred to date.

High‑profile resignations in the party also reveal internal fractures. The most significant was Sumana Shrestha, a former education minister and joint general secretary of RSP. On Sept 14, she publicly quit the party, condemning “a culture of impunity” among the leadership and denouncing a party hierarchy that places itself above the country. 

Shrestha had already been a vocal critic of the party’s leadership style. Her departure crystallized perceptions that RSP’s young leadership was prone to internal conflict. Some RSP officials responded by expressing regret and vowing an internal review to strengthen the party. In short, RSP’s leadership rift has been one of the starkest post‑protest developments: a core of co‑leaders has had to maintain order in the absence of Lamichhane, even as some like Shrestha have fallen out.

The general convention of RSP is another talking point. The party is yet to decide whether to convene its first convention before the March 2026 polls. It, however, has called for an extended meeting for Nov 7 and 8 in Chitwan to finalize the things related to general convention, party leadership and ideology.

RSP Secretariat member, Santosh Pariyar, has proposed an early general convention along with a complete restructuring of the party—not just on political, ideological, and strategic grounds, but also on the basis of key national issues—at the party’s Central Committee meeting.

As the first option, he proposed that the party’s first general convention, originally scheduled for February next year, be moved to December this year. The RSP’s first general convention is currently planned for 19-21 Feb 2026 in Chitwan. It was initially scheduled for April 2025 but was postponed at the last moment.

For that, Pariyar suggested dissolving all existing committees. He proposed converting the current central committee into a general convention organizing committee. He further stated that the central committee formed after the convention should not only reorganize the party’s structure but also redefine its ideology, vision, working direction, and political issues.

If that is not possible, Pariyar has presented an alternative: calling an extended meeting to reorganize its structures. 

He told ApEx that the extended meeting would primarily focus on rebuilding the organization. Through it, he said the existing central secretariat and central committee could be reshuffled. Additionally, Pariyar pointed out that the RSP is suffering from ideological confusion, and therefore, restructuring is also needed on that basis.

“Let’s rebuild the party’s ideology too. We still have much to synthesize and clarify. We are still confused about where we stand on certain matters. Therefore, we must also reorganize our ideas from a theoretical perspective,” he said. “It is also time to reassess our agendas, the issues we raised earlier, how far we have taken them, and the new issues we failed to raise. The recent GenZ movement has brought up issues we once championed. Perhaps we should now take them up more strongly, redefine our political agenda, and broaden our scope.” The restructured committee, according to Pariyar, could then prepare for the March 2026 elections.

Ideologically, the RSP’s response to the GenZ uprising has been to double down on its core platforms. Its leaders have explicitly linked the protests to the failures of the old regime and have advanced policies addressing GenZ concerns. 

However, RSP’s attempts to capitalize on the GenZ movement have been controversial. On the second day of the protest, the party backed a supporters’ jailbreak for Lamichhane, which critics said undermined the protest’s non‑partisan ethos. The perception that RSP tried to hijack the protest for partisan gain has tarnished its image among some youth. In response, the party has intensified its official messaging that aims to reaffirm its goal of upholding protest demands like justice and free expression. But not many youths seem to be buying it.

Following the GenZ movement, CPN (Maoist Center) has embarked on an unusually rapid internal overhaul. Pushpa Kamal Dahal remains in charge, but under immense pressure he has proposed, and begun implementing a full restructuring of the party. In late September, the Maoist Center’s top bodies were dissolved. Through an emergency meeting, the party agreed to disband its Central Committee and all subsidiary committees, and convened a special general convention before the year’s end. 

Under Dahal’s plan, the Central Committee and lower party organs were converted into a “convention organizing committee”, chaired by Dahal himself, to hold an early general convention (anticipated in November–December). In effect, Maoist Centre is resetting its leadership structure. All party committees at the national, provincial and local levels have been dissolved, with a transitional secretariat (composed of existing office‑bearers) managing day-to-day affairs until new leaders are elected. 

In Dahal’s own words “the party cannot function in the old fashion”. He has called for “new procedures”, urging leaders to transform their lifestyles and cultural behaviors. Maoist insiders say the convention will include direct elections for every post (including chairperson) and fundamentally reconstitute the party for the upcoming elections.

Dahal’s proposals explicitly target generational change. He has insisted that younger leaders and marginalized groups take a far larger role. At recent party meetings he has called for maximizing the participation of GenZ youths, women, Dalits and other under‑represented groups in all layers of party structure, including the Central Committee. 

The official party line is that the Maoists have long championed the core GenZ agendas, such as a directly elected executive, a fully proportional electoral system, and an inclusive democracy, and that only by uniting Maoist veterans with the GenZ movement can those demands be met. 

Agni Sapkota, the party spokesperson, has announced that all office‑bearers’ property details will be made public and a special commission will probe leaders’ assets, signaling a new anti‑corruption posture in line with GenZ demands.

Crucially, the Maoist Center has also created or tacitly embraced youth-led caucuses within the party. In mid-October, young Maoist activists announced a new “GenZ Red Force” (or “Red Task Force”) to press the party toward its stated goals. This group, led by Smriti Timalsina, a central member of the All Nepal National Independent Students’ Union (Revolutionary), has appointed coordinators in dozens of districts to expand the party’s grassroots reach and restructure the organization. 

The task force has vowed to “protect the party from leaders who have tried to dominate it for years” by rooting out corruption and promoting new leaders. It has called for investigation into all Maoist leaders’ assets (starting with those currently in power), and even suggesting that top leaders like Dahal serve only one more term before stepping down. 

In effect, young Maoist cadres are policing their own party, aligning with GenZ’s sentiments. As one analyst notes, the Maoists have “pledged to include GenZ members in all committees,” and their new commissions (on party finances, internal discipline, etc.) appear as much about placating youth outrage as about real reform.

However, Vice-chair of All Nepal National Independent Students’ Union (Revolutionary) Biraj Thapa says that GenZ Red Force is an unofficial group and it has no credibility within the party. “They have neither consulted with party leaders nor with the student wing of the party,” he told ApEx.

On policy, the Maoist Centre is likewise repositioning to mirror youth grievances. Dahal has publicly echoed GenZ demands: he repeatedly highlighted the need for a directly elected president and a proportional electoral system as answers to the crisis. In recent rallies, he urged Maoists and GenZ activists to “contest the elections together” so that the protesters’ goals can be achieved. 

The party is effectively trying to invert its image: long seen as a gerontocracy, it now champions youth empowerment and transparency—even if many doubt the sincerity of these moves.

On communication, Maoist leaders have tried to show solidarity with the young protesters. Dahal issued statements supporting the GenZ protests while cautioning against violence, and he has repeatedly framed the Maoist Center as the only major party with a genuine record of progressive reform. The party’s official mouthpiece and youth organizations have used social and mainstream media to court young voters. 

Post‑GenZ reforms in the Maoist Center have been seen as more profound and systemic than other parties. No top leader (including Dahal) was immediately forced out, but the entire party apparatus has been set to be renewed. However, the general convention of the party has always seen the election of Dahal as the party chair. However, the party cadets now talk openly about “new leadership” and rectifying past errors. 

ANNISU (Revolutionary) Vice-chair Thapa says this is the high time to listen to the youth voices in the party and cash in on the momentum of the GenZ movement. “This movement has marked time to restructure the party wing and sister organizations,” he said.

Meanwhile, the Maoist Center, along with the CPN (Unified Socialist) and six other parties, has signed an agreement on party unification. The chairpersons of these parties signed the agreement after reaching a consensus on an 18-point proposal.

Former Speaker of the House of Representatives, Krishna Bahadur Mahara, was arrested by the Central Investigation Bureau (CIB) of Nepal Police on Sunday. This marks the first high profile arrest from the new government. The arrest is linked to the 9-kilogram gold smuggling case dating back to Dec 2022, when a Chinese national, Li Hansong, arrived in Kathmandu from Fly Dubai flight FZ-0587 carrying two suitcases. Inside those suitcases were 73 vape packs containing a total of 730 vape pieces, which were later found to have concealed gold worth Rs 85.5m.

According to CIB’s investigation, the gold was smuggled and sold in collusion with customs officer Rewant Khadka and others. Mahara is accused of exerting pressure on customs officials to release the gold. His son, Rahul Mahara, had earlier been arrested and sent to jail in connection with the same case.

The suspicious suitcases had been seized by the Tribhuvan International Airport Customs Office after the discovery of the vapes. Li Hansong had left Kathmandu shortly after retrieving his passport, while the seized vapes remained in customs custody.

Following suspicions that the gold concealed in the vapes had been secretly replaced, the Customs Office formally requested the CIB to investigate in April 2023. After two months of investigation, CIB concluded that 9 kilograms of gold had been smuggled, filing a case against six people including customs officer Khadka.

A supplementary charge sheet was later filed, naming Belgian national of Chinese origin Dawa Chhiring, his driver Lokendra Paudel, Rahul Mahara, and Nima Gurung as accomplices. Krishna Bahadur Mahara’s arrest marks the third prosecution related to the case.

CIB had recently taken Mahara’s statement as part of its ongoing investigation. Call records reportedly showed continuous communication between Mahara, his son Rahul, and Chinese nationals Li Hansong.

Although Mahara had earlier been questioned, the case had not progressed due to alleged political protection.

Once known as an honest leader during the conflict era, Mahara’s political career has been marred by controversies since joining peaceful politics. He has previously faced allegations in multiple cases,  including the misuse of Rs 400m in funds meant for Maoist combatant management, irregularities in frequency distribution during his tenure as Minister for Information and Communications, and an infamous 2010 audio scandal in which he was allegedly heard seeking Rs 500m from a Chinese national to buy lawmakers’ support. None of those cases, however, led to prosecution.

Elected from Dang-2 in the 2017 general election, Mahara became Speaker but was forced to resign in 2019 after charges of sexual misconduct against a female employee at the Federal Parliament Secretariat. Though he was arrested and jailed, he was later acquitted by the District Court and the verdict was upheld by the Patan High Court.

Since then, Mahara has remained largely inactive in politics, limiting himself to party affairs. He was elected Vice-chairperson of the CPN (Maoist Centre) at its last General Convention and was also serving as the party’s spokesperson.

Nepal’s economy continues to recover steadily despite disruptions to trade and aid globally, states the International Monetary Fund’s (IMF) Sixth Review under the Extended Credit Facility (ECF), published on Monday. The IMF has predicted Nepal’s economic growth at 4.3 percent in 2024/25, supported by a revival in construction and manufacturing, continued hydropower expansion, and a good agricultural harvest that buffered the effects of the Sept 2024 floods.

The IMF notes that Nepal has been relatively sheltered from the recent trade tensions and aid-related shocks in the world due to its small export base—exports account for hardly three percent of GDP. The external position has strengthened, driven by robust growth in exports, remittances, and tourism that have outpaced the increase in imports. Nepal’s foreign gross reserves stood at $17.6bn as of mid-2025, which is equal to nearly 11 months of imports, and the current account is expected to remain in surplus at 3.9 percent of GDP.

Inflation has also moderated significantly—from a post-flood peak of 6.1 percent in Dec 2024 to just 2.7 percent in June 2025—aided by improved food supply, lower Indian inflation, and subdued consumer demand. The IMF is expecting inflation to be held within the Nepal Rastra Bank's (NRB) target of about five percent for 2024/25.

Although Nepal’s growth prospect appears to be good, the IMF warns of continued financial sector vulnerabilities. Non-performing loans (NPLs) rose to 5.2 percent as of end-April 2025, eroding banks’ capital buffers, as the NRB reintroduced forbearance for the construction sector. Average provisioning coverage dipped to 65 percent, and commercial banks' core capital dropped to 9.5 percent, weakening their loss-absorbing buffers.

On the fiscal side, spending growth was repressed even in the face of weak revenues. Tax receipts grew by 10.7 percent, supported by new excise duties on petroleum products, tobacco, and alcohol, but remained less than expected. The primary fiscal deficit was estimated at 1.3 percent of GDP, mirroring continued fiscal consolidation.

The IMF called on the authorities to accelerate capital spending execution, improve public investment management, and execute the Domestic Revenue Mobilization Strategy (DRMS) for fiscal sustainability. It also called for the expansion of child grant programs and social protection initiatives to buffer the most vulnerable households.

Nepal’s progress under the IMF-supported program has been ‘broadly adequate’. The country met all quantitative performance criteria on international reserves and fiscal deficit, but missed the indicative target on child welfare grants.

The IMF has recommended that Nepal raise capital expenditure and remove bottlenecks to public investment to underpin domestic demand and medium-term growth. It has also emphasized improving revenue mobilization by removing unnecessary VAT exemptions and improving tax compliance.

In order to address rising vulnerabilities in the banking sector, the IMF has urged completing the loan portfolio review (LPR) of the 10 largest banks and advised caution in establishing the intended Asset Management Company (AMC) for addressing bad loans. In addition, the IMF has called for enhanced governance and financial integrity through the amendment of the Nepal Rastra Bank Act to enhance central bank independence and the full implementation of anti-money laundering regimes to enable the graduation of Nepal from the FATF gray list.

The IMF forecasts Nepal’s GDP growth to accelerate to 5.2 percent in 2025/26, driven by higher capital spending and a rebound in domestic demand. The medium-term outlook is favorable, supported by mega infrastructure and hydropower projects, alongside structural reforms to improve competitiveness and private-sector development.

However, political uncertainty, financial sector weaknesses, and slow pace of reforms could derail progress, cautions the IMF. Rising emigration, natural disasters, and global economic headwinds also pose significant downside risks.

Deputy Managing Director of IMF Bo Li praised Nepal for trying to maintain macroeconomic stability amidst political uncertainty, and said: “Nepal’s reform program under the ECF continues to underpin a gradual economic recovery while preserving macroeconomic stability and protecting the vulnerable. Continued commitment to economic reforms remains crucial to support growth, reduce poverty, and foster public trust.”

With the conclusion of this review, the IMF Executive Board approved a disbursement of $43m, with total disbursements under the ECF reaching $341m since the program began in 2022.

The overall assessment of the IMF is that Nepal’s recovery is firming but fragile. The IMF highlights that sustained reform implementation, enhanced governance, and prudent fiscal and monetary management will be key to making growth more resilient and inclusive in the years to come.

A recent international report has documented appalling levels of child abuse and sexual exploitation in South Asia, and Nepal is one of the countries most vulnerable to this. It is estimated that nearly one in eight children in South Asia has been sexually assaulted or raped before the age of 18, as reported by the Childlight Global Child Safety Institute. The institute estimated that in Sri Lanka, Nepal, and India, 12.5 percent of children, a total of 54m, have been sexually victimized, including 14.5 percent of girls and 11.5 percent of boys.

The study, Into The Light and published on Tuesday, was conducted by Childlight, a global child safety institute based at the University of Edinburgh and the University of New South Wales. It warns that behind the closed doors of their homes, a “human tragedy” is unfolding across the region, with millions of children subjected to both physical and online sex abuse.

In addition to sexual exploitation, the report highlights a staggering rise in cyber child exploitation, including a 1,325 percent rise in poisonous AI-created content during the past year, such as “deepfake” images that overlay children’s faces on pornographic images. The research is being demonstrated this week in New Delhi and Kerala, where Childlight is collaborating with Indian police at the region’s largest cybersecurity conference, c0c0n, to enhance digital defenses and locate abusers.

India, Bangladesh, and Pakistan lead the country in the most child sexual abuse material (CSAM), according to data reported by the National Center for Missing and Exploited Children (NCMEC) and INHOPE. NCMEC reported more than 2.2m cases in India, 1.1m in Bangladesh, and 1m in Pakistan in 2024 alone. Adjusted for population, the Maldives had the highest in the region’s CSAM rate at 94 cases per 10,000 people, followed by Bangladesh (64.1), Pakistan (41.3), Bhutan (41), Afghanistan (28.9), Sri Lanka (27.8), Nepal (19.4), and India (15.5).

Childlight CEO Paul Stanfield, a previous director of INTERPOL, called the results a worldwide emergency. “Abuse is nearer than folks imagine. Millions of children’s lives are being ruined by physical and sexual abuse online. It is preventable, and all of us can and must intervene to stop it,” he stated.

In Nepal, Anil Raghuvanshi of ChildSafeNet called on governments and tech business leaders to take action. “Children become increasingly exposed to abuse and exploitation on the internet. Governments and technology companies should take action at once with effective protections and sufficient resources. Not safeguarding children is not fulfilling their duties,” he said.

South Asian survivors also provided the same message. Saanika Kodial (14) of Mumbai, who survived online sexual abuse, is now campaigning with the Brave Movement. “Survivors are made to feel guilty and ashamed. Speaking their words does not make them the villain. There will always exist individuals who trust and believe them,” she said.

Childlight is urging governments to enact stronger legislation, faster removal of abuse content and education schemes that equip children and professionals with Internet safety skills. It also praised India for its blanket publication of child sexual exploitation data, which enables it to track trends and construct response mechanisms.

Official data show that police-reported incidents of child sexual exploitation in India rose from 54,359 in 2021 to 64,469 in 2022, while in Pakistan the number roughly doubled from 1,546 to 2,954.

Stanfield outlined that even though the figures are deeply troubling, availability of data can lead to solutions. “The transparency of the data allows governments and law enforcement to target interventions and spur reporting,” he added.

Survivor campaigner Rhiannon-Faye McDonald, groomed online and raped at 13, criticized technology companies for caring little about user safety. “Technology companies have long prioritized profit over safety. For victims, the harm is lifelong. Anybody who thinks it’s ‘just a photo’ should understand that the harm is lasting and deep,” she said.

The report concludes that while child sexual exploitation across South Asia, including Nepal, is rampant, it is not inevitable. Through coordinated regional efforts, stronger governance, and advocacy from survivors, Childlight contends millions of children’s futures can still be protected.

Nepal is set to send a significantly smaller team to 30th UN Climate Conference (COP30) in Belém, Brazil. The conference will be held from Nov 10 this year. Environment Secretary Rajendra Prasad Mishra told ApEx that negotiations are ongoing to decide the representatives.

The decision comes in line with the Sept 21 Cabinet meeting, led by interim Prime Minister Sushila Karki, to curb non-essential overseas travel and limit official delegations. To cut government expenses, the government has capped heads of state or government-led delegations at 10 members and limited other government-sponsored teams to only three members.

The choice also shows Nepal’s political instability following the abrupt political change brought about by the GenZ protests that led to the fall of the KP Oli government. The new government is now tasked with rebuilding scores of government buildings, as well as fixing the infrastructure damaged in recent floods and landslides.

When Nepal first started going to UN climate talks in 1995, it had just two delegates, while the United Kingdom and United States had 19 and 27 respectively. Its delegations expanded incrementally over the years. Sixty-nine delegates attended COP26 in Glasgow and, at COP20 in Lima, the government was reprimanded for sending a ‘jumbo delegation’ on limited resources.

A 2024 ApEx report revealed that Nepal’s delegation missed 68 out of the 392 sessions at COP29 because of overworked negotiators. Organizational shortcomings aside, Nepal has used the COPs to lead mountains and climate justice causes. At COP29 in Baku, Nepal sent its high-level team led by President Ramchandra Paudel, where Nepal emphasized mobilizing climate finance, protecting mountain habitats, and triggering the Loss and Damage Fund.

The delegation also pushed for an annual financing target of $1.3trn for developing countries, gave highest priority to mountain‑specific risk exposures, and made appeals for finance for adaptation and technology transfer. President Paudel called for the reallocation of military expenditures to climate efforts, made calls for grants‑based climate finance and the polluter‑pays principle, and asserted that saving the Himalayas is saving the planet.

Nepal also organized a ‘Sagarmatha Sambaad’ dialogue on mountain resilience in May this year.

Analysts note that although the agendas of Nepal have become more expansive, its bargaining power has not increased. The new ‘small’ negotiation team may therefore push the government to concentrate on core issues such as climate finance, adaptation and mountain conservation and eliminate ceremonial or non‑technical members.

Meanwhile, Brazil’s hosting of COP30 in the city of Belém in the Amazon region has created an accommodation crisis. Reuters reports that Belém hotel rates have risen between $150 and $4,400 a night, and some developing nations could not secure a room.

Latvia climate minister Kaspars Melnis said that the expense is prohibitive and that his nation is considering whether to attend via video link. Lithuania has even talked about boycotting the summit on the same grounds, and the Alliance of Small Island States is concerned that reducing delegations will result in priceless expertise being lost.

African delegates have told Reuters that they have been quoted $700 a night, a far higher sum than the UN daily allowance. In response, the UN International Civil Service Commission has increased the subsistence daily allowance for 144 developing countries from $144 to $197. Brazil has offered restricted available rooms up to $220 a day for developing countries, but with only approximately 18,000 hotel beds for an estimated 45,000 participants, demand outstrips supply.

The cost crisis provoked a wider backlash. During an emergency session in July, the UN climate office listened to complaints from the African group and others. The group chairperson, Richard Muyungi, told Reuters that poor nations cannot cut delegations and make themselves heard. Nevertheless, some wealthier EU states, like the Netherlands and Poland, have said that they might halve or drastically reduce their delegations, with Polish officials warning that they might cut the delegation to the bone or stay away altogether.

With Nepal looking at its COP30 participation, it must juggle local austerity, global cost pressures and the imperative of good representation. An experienced-officer austerity-cut delegation aligns with former Environment Secretary Deepak Kumar Kharal’s proposal of a full-time negotiation team but risks Nepal’s voice in a platform where the more, the merrier is the motto.

Large rates of accommodation in Belém and Nepal’s internal budget crisis also put additional constraints. The ability of the interim government to balance these competing pressures will make or break Nepal’s climate diplomacy and its ability to attract financial and technical aid for its poor hill communities.