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Indian Foreign Secretary Vikram Misri arrived in Kathmandu on Sunday for a two-day official visit. His arrival represents a pivotal moment for both India and Nepal, offering a chance to align their strategic priorities and deepen mutual understanding.

Misri, a seasoned diplomat with a distinguished reputation as a China specialist, was appointed Foreign Secretary last month. In line with tradition, his inaugural diplomatic mission took him to neighboring countries, with Nepal being a significant stop. 

This visit follows the recent establishment of a new government in Nepal, led by CPN-UML Chairperson KP Sharma Oli, in coalition with the Nepali Congress. Soon after his arrival in Kathmandu, Misri engaged in comprehensive consultations with Nepali leaders, focusing on political and developmental issues of shared concern.

In his meeting with Prime Minister Oli, Misri reaffirmed the enduring, multifaceted relationship between India and Nepal, emphasizing the need to invigorate various sectors of bilateral cooperation. Discussions with President Ram Chandra Poudel similarly centered on strengthening ties across all domains, with a particular emphasis on enhanced collaboration in addressing climate change—a critical issue for both nations. Misri held talks with top leaders of the major parties. 

Misri also inaugurated the new building of the Nepal Bhasha Parishad in Kathmandu, constructed under India’s post-earthquake reconstruction grant.

Over recent years, India-Nepal relations have seen notable advancements, particularly in connectivity projects, power trade, and other areas of cooperation. However, lingering distrust persists, stemming from the strained ties during Oli’s previous tenure in 2016 and the  map dispute in 2020. Despite these challenges, there has been a perceptible improvement in trust between the two nations, with India gradually overcoming perceptions of favoritism toward the Nepali Congress-Maoist coalition.

Oli’s return to power, his third in a decade, comes at a time of cautious optimism. His first term in 2015 was marked by the Indian economic blockade, and his second, in 2018, by a strong mandate following the formation of the Nepal Communist Party.  In Oli’s latest tenure, both India and Nepal appear to be in a phase of careful observation and strategic recalibration. Analysts say that Misri’s visit can be instrumental in allowing both sides to communicate their concerns and interests openly. This visit is expected to be followed by a visit from Foreign Minister Arzu Rana Deuba, aimed at laying the groundwork for Prime Minister Oli’s upcoming visit to India. 

Given the complexities in India’s neighborhood, particularly concerning the unfolding situation in Bangladesh following the ouster of former Prime Minister Sheikh Hasina, New Delhi is expected to approach its relations with Kathmandu with heightened caution and diplomacy. On contentious issues such as the border map dispute, both sides have agreed to resolve them through diplomatic channels. With the two largest parties, Congress and UML, holding a significant majority in Parliament, observers say that New Delhi will find it easier to collaborate with the new government. This coalition, likely to remain stable for the next three years, provides a conducive environment for advancing bilateral relations. 

As the Oli-led government faces the daunting task of economic recovery, it is seeking increased assistance and investment from the international community, including India. Enhanced economic partnership, therefore, remains a mutual priority for both Kathmandu and New Delhi.

This week, political turmoil in Bangladesh dominated discourse across all levels of society. Bangladeshi Prime Minister Sheikh Hasina, who held power for 16 years, fled the country following massive student-led protests demanding the end of reservation quotas for the grandchildren of those who fought in the 1971 liberation movement. What began as a student movement quickly escalated into a popular political uprising that played into the hands of opposition parties. In Nepal, the events in Bangladesh sparked debates on two main fronts—what Nepal can learn from this situation, and whether Nepali leaders might face a similar fate if they do not address public grievances.

There are several lessons Nepal can draw from Bangladesh: Strengthening democratic institutions, ensuring a level playing field for all political parties, linking economic growth with poverty alleviation, creating jobs, and safeguarding freedom of speech and expression. Nepal’s Ministry of Foreign Affairs issued a statement responding to the recent developments, saying, “We call for calm and restraint by all and stress the importance of an orderly return to the democratic process. We are confident that the strong and resilient people of Bangladesh will ensure a smooth transition toward peace and stability.”

With these new developments, concerns have arisen over the bilateral relationship between Nepal and Bangladesh, which had been progressing steadily during Hasina’s tenure. The two countries were close to finalizing details on energy trade, but it is uncertain whether this will remain a priority for the new interim government in Bangladesh, which is currently focused on preparing for the next elections. There are also concerns about several bilateral projects that have been in discussion over the past few years. Additionally, Nepal has tightened its border with India to prevent a possible influx of refugees from Bangladesh via India. Despite these challenges, the substantial growth in Nepal-Bangladesh relations over the past decade is likely to remain unaffected.

On domestic issues, the top leaders of Nepal’s three major parties—Nepali Congress, CPN-UML, and CPN (Maoist Center)—have reported progress on disputed transitional justice issues. A cross-party task force has submitted its report to Prime Minister KP Sharma Oli, NC President Sher Bahadur Deuba, and Maoist Chairman Pushpa Kamal Dahal, with a commitment to endorse the bill to amend the Transitional Justice Act. Since 2015, these parties have faced pressure from conflict victims and the international community to amend the Act in line with the Supreme Court’s verdict and international standards. If the three parties can unite, it will be easier to resolve Nepal’s transitional justice process.

In another story, concerns over air safety were heightened following another air crash within two weeks. An Air Dynasty helicopter crashed in Nuwakot, killing five people, including the pilot and four passengers. This follows the July 24 crash of a Saurya Airlines plane at Tribhuvan International Airport, which killed 18 of the 19 people on board. The series of crashes has placed the Civil Aviation Authority of Nepal (CAAN) under public scrutiny, as it is responsible for ensuring safety measures. The repeated incidents are likely to have negative repercussions on Nepal’s tourism industry. Parliamentarians have already raised questions about the governance within CAAN, and Tourism Minister Badri Pandey has vowed to devote one week to investigating the causes of these repeated crashes.

In politics, Maoist Chairman Pushpa Kamal Dahal continued to make headlines this week, declaring that he would not seek the position of prime minister before the 2027 elections, and if the party gains the opportunity, the next leader will assume the role. Just last week, he had announced that the Maoists would contest the next election on their own. However, Maoist party leaders remain skeptical of Dahal’s announcement.

Meanwhile, Nepali Congress President Deuba faced criticism this week for doing little to strengthen the  party organization and instead focusing on consolidating his power. Under pressure from party leaders, Deuba did appoint coordinators for the party’s 37 departments this week.

Additionally, two significant documents were submitted to the Nepali Congress party office this week—one by General Secretary Gagan Kumar Thapa and the other by Vice-Chairman Purna Bahadur Khadka. Thapa’s document, which opposes forming electoral alliances in the next elections, previously irritated the Maoists. However, with the recent changes in the national political landscape, the NC and UML have agreed not to pursue electoral alliances.

A few weeks ago, a senior UML leader revealed that the NC and UML had agreed not to form an electoral alliance. In the NC meeting this week, Home Minister Ramesh Lekhak informed party members that the NC and UML plan to pursue constitutional amendments, though he did not specify the issues. He cautioned against undermining this agreement, warning that such mistakes could lead to a political disaster.

In another development, a Cabinet meeting removed Shyam Lal Gyawali from the Central Investigation Bureau (CIB), which received mixed reactions, and transferred Deepak Thapa to CIB. 

At the provincial level, the formation of a new alliance at the center has led to the formation of new governments in provinces. However, Madhes province has drawn criticism for appointing 20 ministers, as this could strain state resources.

That’s all for this week. Have a great weekend.

Top leaders of three major parties—Nepali Congress, CPN-UML, and CPN (Maoist Center)—have pledged to endorse the amendment bill related to the Transitional Justice Act through the current session of the House of Representatives. Prime Minister and CPN-UML Chairman KP Sharma Oli, Nepali Congress President Sher Bahadur Deuba, and CPN (Maoist Center) Chairman Pushpa Kamal Dahal made this commitment while receiving a report prepared by a cross-party panel formed to address the contentious issues in the bill, particularly those related to serious human rights violations.

“I consider this a success achieved after the formation of the new government under Prime Minister Oli,” said Dahal after receiving the report. He added, “Now the bill, which is in the parliamentary committee, should be forwarded to the full House and endorsed through this session of Parliament.” A cross-party task force comprising Ramesh Lekhak from NC, Mahesh Bartaula from UML, and Janardhan Sharma from Maoist Center worked hard to forge consensus on the contentious issues of the Enforced Disappearances Enquiry, Truth and Reconciliation Commission Act. According to Lekhak, who now heads the Ministry of Home Affairs, issues of reconciliation, reparation, and prosecution were addressed while considering the concerns of the victims.

Prime Minister Oli said that consensus was achieved considering the Supreme Court’s 2015 verdict, meeting international standards, and addressing the concerns of the victims. He added that the government would expedite tasks related to appointments in the Truth and Reconciliation Commission (TRC) and the Commission of Investigation on Enforced Disappeared Persons (CIEDP), two transitional justice mechanisms formed in 2015. Oli also said that there are no longer any ambiguities or confusions regarding the transitional justice laws. The international community has yet to react to the agreement reached among the three major leaders.

NC President Deuba remarked that Nepal would set an example in the international arena if the transitional justice process is amicably settled. He said that if the task force’s resolutions are endorsed by Parliament and war-era human rights cases are settled, it would send a positive message to the world. The TRC and CIEDP, formed in 2015 to address transitional justice mechanisms, have struggled due to the absence of laws in line with the Supreme Court’s 2015 verdict and international standards.

Over the past 10 years, the two commissions have made some progress. The TRC has registered 63,718 complaints, including 314 related to rape and sexual violence. Similarly, the CIEDP has recorded 3,000 complaints. Both commissions have completed preliminary investigations on some cases. However, in recent years, they have been without heads and members, rendering them virtually defunct. Their tenures are being renewed to prevent complete collapse.

Disputes among parties primarily revolve around how to address serious human rights violations committed during the insurgency era. The international community insists that there should be no amnesty for serious human rights violations. Although the three parties claim to have resolved the disputed issues, it remains to be seen how Parliament, the international community, and most importantly, the conflict victims will respond.

This week Prime Minister KP Sharma Oli made three major decisions: appointing ambassadors to 18 countries, issuing a long list of directives to government secretaries to improve governance and service delivery, and transferring government secretaries.

His quick decision to appoint ambassadors has been well-received by the public, though it has faced criticism for favoring party members over experts in foreign policy and diplomacy. Additionally, the appointments are not very inclusive, despite the government's inclusive policy. This is not a new issue, as ambassadorial appointments have followed this pattern for a long time, with leaders rarely heeding public suggestions.

The ambassadorial appointments by the Oli administration also led to the resignation of Shanker Das Bairagi as the national security advisor. A former government secretary, Bairagi was appointed the national security advisor by former Prime Minister Pushpa Kamal Dahal. He quit the post in hopes of becoming the ambassador to India, but his bid was unsuccessful with the government’s decision to give continuity to the incumbent, Shankar Sharma.

Also this week, Prime Minister  Oli, like his predecessors, issued a 26-point directive to government ministers and secretaries, assuring them that this coalition will fulfill its full three-year term. He also mentioned he would resign a week before the end of his two-year term, in accordance with a gentleman's agreement between the Nepali Congress and the CPN-UML. It remains to be seen if Oli’s directives will be implemented, as there is a poor track record in this regard. For example, former PM Dahal issued a similar directive, only to express frustration after three months due to non-implementation. The bureaucracy typically shows little enthusiasm for aligning with politicians’ priorities.

The government also transferred several government secretaries. Politicians often talk about political and policy stability but frequently transfer secretaries. While one round of transfers following the formation of a new government can be justified, repeated transfers, as seen under Dahal’s leadership, disrupt the working environment. If Prime Minister Oli genuinely wants to improve governance, he must address these issues or risk losing bureaucratic support.

In another story, Minister for Home Affairs Ramesh Lekhak faced criticism this week for transferring senior police officers involved in investigating high-profile corruption cases. He also initiated an investigation against AIG Shyam Gyawali following a series of complaints. Lekhak has stated he will not allow the misuse of administration to protect individuals or suppress political opponents. His path ahead is challenging, as he must balance allowing independent police investigations with potential political pressures to sideline certain cases.

The CPN (Maoist Center), now in opposition for the first time in nearly 10 years, held a meeting to discuss its future path. Leaders acknowledged neglecting party-building while in power and decided to contest the 2027 elections alone, though this is unlikely to happen.

Meanwhile, CPN-UML General Secretary Shankar Pokhrel sparked debate by suggesting changes to electoral laws to prevent the rise of fringe parties, which he argues is necessary for political stability. He proposed increasing the threshold percentage, a move likely to be opposed by smaller parties. Pokhrel has long advocated for a two-party system in Nepal.

Another significant development of this week was that a consensus was reached among political parties on transitional justice issues related to human rights violations during the insurgency period. However, this agreement must be endorsed by the Ministry of Law and Parliament. If the NC, UML, and the Maoist Center agree, it may proceed, but it remains uncertain if conflict victims and the international community will accept it.

This week also saw a change in the leadership of Nepal Army after Ashok Raj Sigdel was elevated to the post of acting chief of the army. He will be in full charge of the army within a month. This change is unlikely to impact national politics, as the NA has largely maintained its apolitical reputation, unlike Nepal Police and other institutions where political meddling is rife. 

Another notable story this week was the rejection of Krishna Man Pradhan’s nomination as a member of the Election Commission by the Parliamentary Hearing Committee. The committee reached its decision hours after Pradhan, who was unanimously nominated on June 16 by the Constitutional Council led by former Prime Minister Dahal, withdrew himself from the hearing process. Pradhan’s nomination was disputed after a woman filed a complaint claiming that he had sexually exploited her for years. This rare decision by the hearing committee is a positive step, underscoring the importance of parliamentary screening for constitutional body appointments.

Since 2017, the CPN (Maoist Center) has been securing its political standing through alliances with either the Nepali Congress (NC) or the CPN-UML. In the 2017 elections, an alliance with the UML helped the party win 53 seats in the 275-member House of Representatives (HoR). By 2022, an electoral partnership with the NC resulted in 32 seats.

With neither the NC nor UML securing a clear majority, the Maoist Center, as the third largest party, enjoyed the role of a kingmaker. It used this privileged position to its advantage and, after 2017, its Chairman Pushpa Kamal Dahal managed to become prime minister twice.

However, the unexpected alliance between NC President Sher Bahadur Deuba and UML Chairman KP Sharma Oli on July 1 midnight has relegated Dahal and his party to the opposition. Reports suggest that Deuba and Oli have agreed not to form an electoral alliance with the Maoists in the 2027 elections.

Senior CPN-UML leader Ishwar Pokhrel's revelation of this agreement has further agitated the Maoist party, with leaders accusing the two largest parties of conspiring against them. 

This week, the Maoist Center announced its intention to contest the 2027 election without any electoral alliance, despite the election being three years away. Maoist leaders view this as an opportunity to prepare for a solo campaign, allowing them to present their clear ideology and perspective to the public. Party Spokesperson Agni Sapkota noted that previous alliances hindered the party’s ability to communicate its ideology and programs effectively.

However, political observers doubt the Maoists will stick to this decision, suggesting it may be an attempt to boost cadre morale. Without an alliance, the Maoists are likely to become weaker. Meanwhile, Dahal is already preparing to form an alliance of communist parties for the 2027 elections. Recently, he reconstituted the Socialist Front, a loose network of fringe communist parties, including the CPN (Unified Socialist) led by former Prime Minister Madhav Kumar Nepal. Dahal is trying to revive the idea of left consolidation, expressing concern over UML leaders’ desire to see a leftist alliance like in 2018.

Dahal is acutely aware of the party’s weakening position due to multiple splits since joining peaceful politics and his focus on government formation. Since 2008, the party has suffered at least five splits, significantly weakening its position, particularly in urban areas. The party still holds sway in certain constituencies of the mid-western district, the heartland of the Maoist insurgency, and some pockets of the hilly region. However, its urban base is crumbling.

For instance, in Kathmandu-2, senior Maoist leader Onsari Gharti lost despite an alliance with the NC, and Dahal himself is known for frequently changing his constituencies to find more favorable support. In 2022, he contested from Gorkha-2 with support from Baburam Bhattarai, who has a stronghold in that constituency. It remains uncertain where Dahal will contest the next parliamentary elections. Contesting alone would be a daunting task for the Maoists, and Dahal will likely seek support from Maoist splinter groups, though this may not be enough to secure victory.

In an effort to strengthen the party, Dahal has announced a nationwide tour to reconnect with the people and understand their problems. Even senior Maoist leaders acknowledge the party’s significantly degraded position.

Senior Maoist leader Haribol Gajurel resigned this week, admitting responsibility for the party’s decline and calling for other senior officials to do the same to initiate a fresh start. He emphasized the need for a serious review of the party's weakening position to avoid further setbacks. Gajurel, formerly Dahal's chief political advisor, had previously resigned in protest of several government decisions. 

Similar to the NC and UML, the Maoist party is plagued by factional politics and leadership tussles, with ongoing disputes about Dahal's successor. But unlike NC and UML, the Maoist party is unlikely to survive the next elections without forging strategic alliances.

Dear readers,

We start this week’s update on a tragic note. We are talking about the tragic Saurya plane crash at Kathmandu’s Tribhuvan International Airport (TIA) on Wednesday that killed 18 out of 19 passengers on board.

At this time of tragedy, our thoughts are with the friends and families of the deceased. We also wish for a speedy recovery of the pilot who survived the disaster.  

Wednesday’s incident at the TIA has once again highlighted concerns over Nepal’s aviation safety. Once again questions are being raised about the oversight role of the Civil Aviation Authority of Nepal (CAAN) and the airlines. 

Recently, there has been an increase in technical errors, emergency landings, and other issues with domestic airlines, leading to a growing sense of insecurity among the public. People are now questioning the safety of both air and land travel, especially in light of recent plane crashes and major bus accidents.

These tragedies negatively impact Nepal’s international image and could further harm the tourism industry, which is just beginning to recover from the severe effects of Covid-19. The international community is closely monitoring these incidents as Nepal seeks permission from the European Commission for Nepali planes to fly over the European airspace.

This week, the monsoon continued to wreak havoc across the country, causing loss of lives and property. Already, monsoon rains have claimed over 130 lives and caused property damage worth billions.

Now onto politics. This week, Prime Minister KP Sharma Oli secured a two-third majority in a crucial floor test at the House of Representatives. However, it remains to be seen if he can maintain this support for long. After becoming prime minister, Oli faced tough questions from lawmakers, which we covered in detail. He also made public a much-anticipated seven-point agreement reached with Nepali Congress (NC) President Sher Bahadur Deuba, which has not yet been released.

Within the NC, Oli’s primary coalition partner, internal dissatisfaction is growing over the selection of ministerial candidates for provincial and federal positions. Senior leaders Shekhar Koirala and Gagan Thapa have accused Deuba of favoring his close associates. While this discontent may not escalate significantly, the NC leadership should address these concerns to prevent potential spillover effects on the coalition government. Deuba, who has total control over party structures, should be more accommodating and provide space for marginalized groups. The same goes for Prime Minister Oli; he should address intra-party concerns rather than suppressing dissenting voices.

Outside Kathmandu, following the formation of the NC-UML coalition at the center, new chief ministers are being appointed in the provinces. Provincial governments are becoming unstable due to a frequent change of guard at the Center, but our political parties seem least bothered about it.

Meanwhile, former prime minister and CPN (Maoist Center) Chairman Pushpa Kamal Dahal, who was ousted from power, is busy with internal party meetings, emphasizing the positive aspects of his government's tenure. He claims he was ousted after corruption scandals were uncovered and has urged party members to focus on rebuilding the party's organizational base. Since losing power, Dahal has not spoken in the Parliament.

In another story this week, a cross-party committee formed to address war-era human rights issues has made some progress, but it is unclear what top politicians think about the TRC Bill pending in Parliament. With the Maoists out of power, significant progress on the TRC seems unlikely.

On the economic front, with the new government in place, attention is on Finance Minister Bishnu Prasad Poudel to revive the country's economy. Prime Minister Oli has appointed former Finance Minister and Governor Yubaraj Khatiwada as his economic advisor, delaying the unveiling of the much-awaited monetary policy. Concerns remain about whether Poudel and Khatiwada will coordinate effectively on economic issues. The public expects good coordination between the Ministry of Finance, the Prime Minister’s Office, and Nepal Rastra Bank.

Also this week, Minister for Foreign Affairs Arzu Rana Deuba outlined the government’s foreign policy priorities. It is unclear if she is consulting with the prime minister on these matters, but she has discussed China’s Belt and Road Initiative (BRI), stating it cannot proceed without wider government and public discussions. The BRI has been under discussion since Nepal signed the framework agreement in 2017, with the debate polarized between pro-BRI and anti-BRI forces in Kathmandu. China and Western countries are investing in narratives for and against the BRI, respectively, dividing politicians.

Another notable story this week concerned Deputy Speaker of the House of Representatives Indira Rana Magar. Magar faced public scrutiny after a letter surfaced in which she had written to the US Embassy in Kathmandu to facilitate the visa process for people with no official connection to her.

Some parliamentarians have accused Magar of misusing her position and trying to “traffick” people into the US, and have called for her resignation to facilitate the investigation. Magar’s party, Rastriya Swatantra Party (RSP), has defended her, stating that the letter was written last year to request the US embassy to schedule an early date for visa interviews, and that there was no ill-intention.

RSP has also claimed that their detractors are using the old letter to smear Magar and the party. However, the moral question remains, as Magar did use her official letterhead of the Deputy Speaker for her correspondence with the US embassy.

That’s all for this week. Have a great weekend!

After receiving briefings from intra-party departments, newly elected Minister for Foreign Affairs, Arzu Rana Deuba, has begun her work. Her immediate task upon taking office was to facilitate the return of Nepali students from Bangladesh, where violence erupted following nationwide protests by students demanding the abolition of the quota system in government jobs.

On Wednesday, Minister Deuba appeared before the parliamentary committee on International Relations and Tourism, where she faced a broad range of questions on foreign policy, including China’s Belt and Road Initiative (BRI). The BRI, China’s flagship program unveiled by Xi Jinping in 2018, has once again become a focal point in both domestic and foreign policy with the formation of the new government under Prime Minister KP Sharma Oli.

Minister Deuba informed the parliamentary committee that although the broad agreement on the BRI was signed in 2017, discussions on its implementation plan have only just begun. She said key details such as the project modality, loans, and specific projects are still to be finalized. She emphasized that any agreement must undergo broader discussion before signing, citing the extensive debate on the US’s Millennium Challenge Corporation (MCC) in Parliament as a precedent.

Minister Deuba further stated that the debate should not be confined to a few ministries but should include input from a wider section of stakeholders. The first phase will involve discussions within the government, with the Parliamentary committee being informed subsequently. She reassured that the broad agreement poses no threat, as it is an overarching document, and emphasized the need for collective input on how to proceed with the BRI.

This is Minister Deuba’s first statement on the BRI. China has long pressed for the signing of the BRI implementation plan. The previous government, led by CPN (Maoist Center), was prepared to sign the document, but it was canceled at the last minute by then-Prime Minister Pushpa Kamal Dahal. Although the Ministry of Foreign Affairs had sought permission to sign the document, Dahal did not grant consent.

It was widely reported that the document was not signed due to disagreements over loan terms. However, former Foreign Minister Narayan Kaji Shrestha later clarified that the implementation plan does not mention the investment modality. He added that the issues of investment would be addressed in a separate project implementation plan to be signed after the implementation plan.

Political parties are divided over China’s BRI. The CPN-UML and other communist parties advocate for progress on the BRI and are open to taking soft loans if necessary. The Nepali Congress, a key coalition partner, has officially decided to accept only grants, not loans, under the BRI. However, the BRI’s investment modality involves joint investments in specific projects, with China potentially providing some concessions.

Chinese Premier Li Qiang, in his congratulatory message to Prime Minister Oli, expressed his desire to implement the understandings reached between top leaders of the two countries and to promote collaboration under the China-Nepal Belt and Road Cooperation, as well as in other areas. While major parties have similar positions on the BRI, some adopt a softer stance for public posturing. 

In Nepal, the BRI is often perceived as a loan to finance development infrastructure. Recently, China has advised Nepali politicians to select smaller projects under this initiative instead of large, financially viable ones.

A day after winning the vote of confidence, Prime Minister KP Sharma Oli on Monday engaged in a questions-and-answer session with lawmakers from various political parties. The session covered a broad range of topics, reflecting diverse concerns and interests of the representatives. The members of parliament sought clarity on several key issues, such as infrastructure development, economic growth, good governance, corruption investigations, and ongoing national projects. Here’s the edited version of the Q&A session. 

When will the government start and complete the work of upgrading the Butwal-Pokhara (Siddhartha Highway) road section within the Gandaki Triangle to a dedicated two-lane? Also, what is the current status of the Aandhikhola High Dam Hydropower Project? Additionally, what preparations has the government made to end illegal transactions to improve the country’s economic situation? - Dhanraj Gurung, NC

The Gandaki Economic Triangle project, aimed at developing the Bharatpur-Butwal-Pokhara (Muglin) area in collaboration with the private sector, includes infrastructure, industrial growth, energy, agriculture, tourism and employment creation. The current fiscal year’s budget allocates funds for upgrading the Butwal-Pokhara (Siddhartha Highway) road section to a two-lane road, and the Siddhababa Tunnel work is nearly complete. The project is set to start in the first quarter of the fiscal year, with authorities instructed to begin work in Shrawan. 

The Aandhikhola High Dam Hydropower Project in Syangja district aims to generate 180 MW of electricity. Preliminary feasibility and environmental studies have been completed. But there is the main challenge of relocating 712 households. The government is committed to advancing this project by finalizing its modality and securing investment.

For economic governance, the government is adopting a risk-based assessment system for financial crimes. High-risk areas such as casinos, precious metals, cooperatives, real estate, remittances and banking will be closely monitored. A zero-tolerance policy against corruption will be implemented, with integrated promotion, preventive and corrective measures. Revenue leakage and illegal economic transactions will be controlled through coordinated efforts with related agencies. 

Systems like central invoice monitoring, ASYCUDA (automated system for customs data), VCIS (videojet visual code inspection system) and integrated taxpayer information systems will be developed to ensure effective revenue mobilization and economic governance.

During your previous tenure as prime minister, you issued a new map of Nepal including Kalapani, Lipulekh and Limpiyadhura. However, these areas remain only on the map. What is your policy, plan and strategy to bring these areas under Nepal’s control? - Deepak Bahadur Singh, RPP

Regarding Nepal’s international borders, the Federal Parliament, the Government of Nepal, and all Nepalis are firm on the new map of Nepal. The government is committed to resolving these issues through diplomatic negotiations with India, based on historical facts and evidence.

What initiatives will you take to investigate corruption scandals and examine the wealth amassed by politicians since 2046 BS? And will you move forward with constitutional amendments? - Dhawal Shamsher Rana, RPP

To improve public trust in governance, the government is committed to impartial and independent investigations into corruption allegations and unexplained wealth accumulation. Measures are being taken to address issues in the cooperative sector, including establishing cooperative loan recovery tribunals, credit information centers, and cooperative savings and loan protection funds. Concerning the amendments to the constitution, the process will be pursued through national consensus to address current issues and promote stability and prosperity.

When will the 828 MW Uttar Ganga Storage Hydroelectric Project in Dhorpatan municipality, Baglung, start power generation? When will the uranium extraction process in Lomantang begin? Additionally, when will the bill to operate Nepali cargo ships on international sea routes, which has remained in the Parliament for four years, be passed? - Devi Prakash Bhattachan, UML 

The Uttar Ganga Storage Hydroelectric Project, initially under the Nepal Electricity Authority, is now being developed by Uttar Ganga Power Company Limited. The feasibility study and environmental impact assessment are complete, and land acquisition is underway. The goal is to complete it within four years.

For the Lomantang uranium deposit, detailed exploration and industrial utilization modalities need development before extraction can begin. 

The bill to operate Nepali cargo ships is in the process of being presented in the Parliament after the cabinet’s approval on 11 July 2024.

During the tenure of the then NCP-led government, a decision was made in 2077 (four years ago) to hand over the construction of the remaining 79 kilometers of the 134-kilometer Darchula-Tinker Road to the Nepali Army. However, the construction of the road section has been hindered after it was merged into the “Mahakali Corridor Project.” Should the remaining 79 kilometers of the Darchula-Tinker Road be established as a separate project? Additionally, the cabinet decision on 3 May 2023 to remove the Mahakali river control office from Darchula has disrupted the flood control and maintenance works. I request the Prime Minister to instruct the concerned ministry to restore this office. - Dilendra Prasad Badu, NC

The Tusharpani-Kotedhar-Tinker section under the Mahakali Corridor Project is being constructed by the Nepali Army due to the presence of 80 percent hard rock, which facilitates the management of explosives and speeds up construction. No separate budget sub-head is maintained for roads constructed by the army, except for the Tarai-Madhes Fast Track. However, adequate budget allocation has been managed in the past and will continue to be ensured for construction progress.

For Mahakali river control, the office was relocated from Darchula to Patan in Baitadi to perform irrigation and river control works more effectively. A contact office and some technical staff are maintained in Darchula for embankment construction and monitoring. The office in Baitadi will continue these efforts.

Is there anything in the seven-point agreement that the general public would revolt against if they knew? Also, when will the bill forwarded to the Law and Human Rights Committee be finalized? - Durga Rai, Maoist Center

I have already informed this assembly about the seven-point agreement between the Nepali Congress and the CPN-UML in the context of gaining the vote of confidence yesterday. As for the bills stuck in parliamentary committees, I am hopeful that the committee members will actively and collaboratively work to finalize those bills. The government will fully support this process.

What is the government’s policy to ensure public transportation and road safety, given the tragic bus accident on July 12 in Trishuli? What is the status of the road standards and the mechanical condition of vehicles in Nepal? It’s been almost a year since the implementation of the Millennium Challenge Corporation (MCC) agreement began. How is the progress? Can we complete the project within the stipulated five years? - Deepak Giri, NC

Regarding the Trishuli bus accident, the bodies of 25 out of 62 missing passengers have been found so far, with 18 identified. Search efforts are ongoing with security personnel, and Indian divers have been involved since July 20. The bodies have been found in various locations, including Indian territories, and the search continues despite challenging conditions. The government is preparing a Road Safety Bill and has submitted a National Transport Policy to the cabinet for approval. The Road Safety Council will be established to systematically implement various road safety measures.

The MCC agreement implementation is progressing as planned. Substation construction contracts have been signed, and one section of the transmission line contract is in the final stages. The aim is to utilize the $500m grant within the agreement period. The project will significantly contribute to the development of Nepal’s energy sector and introduce new technologies for road upgrades.

The Koshi Western Canal constructed by the Indian government extends from the Koshi Barrage in Saptari district to India’s Laukahi, covering 32 kilometers in Nepal. India has built a paved road on its side, but the road on the Nepali side remains unpaved. Will the government initiate talks with India to pave the road? The road from Gaighat in Udayapur to the Indian border in Saptari district, which falls under the national pride project, has not been constructed either. Will it be built this fiscal year? Also, the Sunkoshi-Kamala Diversion project could provide irrigation services in Saptari. Will this project be constructed? - Dinesh Kumar Yadav, NC

The Koshi Western Canal’s road in Nepal is being paved gradually. The Nepal-India bilateral mechanism will be requested to remove encroachments and complete the paving. Preparatory works for the road from Gaighat to the Indian border were completed in the last fiscal. Due to financial constraints, it was not initiated, but it will be prioritized this fiscal year. The Sunkoshi-Kamala Diversion project, along with the Koshi High Dam, is under joint study by Nepal and India. Implementation of these projects will follow once the study is completed.

The government you led in 2018 initiated several national pride projects, constituency-focused strategic plans, and municipal-focused plans. Many of these projects remain incomplete or stalled. How do you plan to advance these projects? - Deepa Sharma, UML

To fulfill the dream of a prosperous Nepal and happy Nepali, my government, formed in 2018, initiated numerous national pride projects, constituency-focused strategic plans, and municipality-focused plans. This government prioritizes prompt completion of the initiated but incomplete and abandoned projects by ensuring the proper management of resources. By making the best use of limited resources, arrangements will be made to ensure that there is no shortage of budget for national pride projects, transformational projects, priority projects and other projects of national significance. Necessary budgets will be arranged for the completion of contracts under the ongoing projects.