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The recently concluded Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit in Thailand saw several important sideline meetings between heads of state and government.  Prime Minister KP Sharma Oli held a bilateral meeting with Thai Prime Minister Paetongtarn Shinawatra. The two leaders discussed a wide range of issues:  economic cooperation, trade, aviation, tourism, culture, and development partnerships. 

During the visit, eight Memorandums of Understanding (MoUs) were signed—two at the government level and six between non-governmental entities. Among them, Foreign Minister Arzu Rana Deuba and Thailand’s Minister for Culture Sudawan Wangsuphakijkosol signed an MoU to foster cultural collaboration. Deuba also signed an agreement on tourism cooperation with Thai Minister for Tourism and Sports Sorawong Thienthong.

Other MoUs were inked between Nepal Netra Jyoti Sangh and Mahidol University, Janata Agro and Forestry Nepal and Kasetsart University, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Board of Trade of Thailand, and Kathmandu University and Siam University. The Confederation of Nepalese Industries (CNI) also reached an agreement with the Federation of Thai Industries, and the Nepal Chamber of Commerce signed one with the Tourism Council of Thailand. These commitment partnerships are expected to enhance cooperation across various sectors.

 Prime Minister Shinawatra announced Thailand’s intention to increase investments in Nepal’s aviation and tourism sectors. She expressed interest in expanding Thai Airlines' flights to Kathmandu and launching direct flights to Lumbini. She further emphasized Thailand’s plans to prioritize investments in Nepal’s energy, hospitality, and aviation industries. Calling the visit historic, she highlighted the shared goal of deepening connectivity and trade relations.

PM Oli said the visit strengthened Nepal-Thailand relations. He voiced confidence in future collaboration in areas such as culture, tourism, education, and energy. Reflecting on six decades of diplomatic ties, he called for greater engagement, including stronger people-to-people connections. He also encouraged Thai investors to explore opportunities in Nepal’s hospitality and aviation sectors.

Overall, Prime Minister Oli’s visit to Thailand proved to be highly significant. One of the most notable events on the sidelines was his  one-on-one meeting with Indian Prime Minister Narendra Modi. The two leaders met privately for 45 minutes, and Oli appeared pleased and content afterward—indicating the success of his visit.

Foreign policy must remain dynamic and responsive, as global geopolitics continues to evolve. It is crucial that Nepal reaches a national consensus on its foreign policy framework. Such a policy should transcend individual leaders or political parties. Whether led by Oli, Sher Bahadur Deuba, or Pushpa Kamal Dahal, Nepal’s foreign policy should remain consistent, reflecting the nation’s long-term interests rather than shifting with changes in leadership.

There are fundamental bases for foreign policy, and these should be discussed among all stakeholders to reach a consensus. This is a crucial time for such dialogue. While formulating our foreign policy, we must consider factors such as our geography, social norms, cultural and religious aspects, political system, international affiliations, and commitments under the United Nations Charter. If this approach is taken, the policy will be more broadly accepted.

Foreign policy may vary depending on the nature of a country’s relationship—whether we share borders, cultural and social ties, or strategic interests with major powers and donor nations.

Our foreign policy should be firmly aligned with the principles of Panchsheel and the Non-Aligned Movement. At this juncture, Nepal must prioritize sustainable development, peace and security, democratic governance by the people’s representatives, and overall national progress—guided by our geography, social structure, political system, and economic aspirations. As society advances, with improvements in education, healthcare, and global competitiveness, it is essential that our foreign policy reflects these changes. 

In Nepal, the perception of health remains narrowly confined to physical well-being, while mental health continues to be dismissed as an afterthought. Despite the growing global emphasis on psychological well-being, the discourse on mental health in Nepal remains largely overshadowed by stigma, misinformation, and systemic negligence. The repercussions of this neglect are severe, affecting individuals across all age groups, particularly in underprivileged communities and remote areas where mental health resources are virtually nonexistent. The lack of awareness and accessibility, coupled with deeply ingrained cultural misconceptions, has exacerbated the crisis, rendering mental health care a privilege rather than an essential component of public health.

The mental health crisis manifests itself across different life stages. Children, often burdened with academic pressure and familial expectations, are rarely given the emotional support necessary for their psychological development. Many struggle with anxiety and depression from a young age, yet their distress is either trivialized or attributed to laziness. Adolescents and young adults, grappling with career uncertainties, societal expectations, and the growing influence of social media, face increasing mental health challenges, yet they are often met with dismissive responses such as being told to ‘toughen up’. The situation becomes more complicated for adults who deal with financial burdens, workplace stress, and family responsibilities, with limited avenues to seek professional help. 

Among the elderly, mental health issues such as depression and dementia are either misunderstood as a natural part of aging or completely ignored, leaving them in a state of isolation and neglect. The World Health Organization (WHO) estimates that nearly 15 percent of the global elderly population suffers from a mental disorder, a figure that is likely to be higher in Nepal due to the absence of proper mental health interventions.

The situation is even more dire in Nepal’s remote and underprivileged communities, where mental health remains a subject of myth and superstition. Many rural areas lack professional mental health practitioners, forcing those in distress to rely on traditional healers or shamans, whose methods often involve spiritual rituals rather than evidence-based interventions. 

A 2021 study published in the Journal of Global Health Reports indicated that over 80 percent of mental health patients in rural Nepal first consult a faith healer before considering medical help, if at all. The lack of accessible mental health services, coupled with a deep-rooted belief that mental health disorders are caused by supernatural forces, discourages individuals from seeking professional care, further entrenching the cycle of suffering and silence.

Despite the increasing prevalence of mental health issues, Nepal’s healthcare infrastructure continues to marginalize psychological well-being. Hospitals and clinics are largely focused on treating physical ailments, while mental health remains a neglected domain within the broader healthcare system. According to the Nepal Health Research Council (NHRC), mental health services account for less than one percent of the total healthcare budget, a stark contrast to the country’s rising burden of mental illness. Unlike physical health checkups, which individuals proactively schedule, mental health concerns are consistently postponed or ignored altogether. Seeking therapy is still widely considered an indulgence rather than a necessity, with many perceiving it as a service reserved for the wealthy or those who are ‘weak.’

One of the primary barriers to mental health care in Nepal is the prohibitive cost of therapy. While a general physician’s consultation may cost a nominal fee, psychotherapy sessions remain expensive and largely out of reach for the average Nepali citizen. A 2022 report by the Nepal Mental Health Foundation found that the cost of a single therapy session in Kathmandu ranges between Rs 1,500 to Rs 3,500, a significant expense for families struggling with daily financial constraints. Given this economic reality, individuals are more likely to allocate their limited resources to immediate physical health concerns, leaving mental health at the bottom of their priority list.

The path forward requires a multifaceted approach that integrates mental health into Nepal’s overall healthcare system and societal framework. Greater investment in mental health infrastructure is imperative, ensuring that psychological services are available at primary healthcare centers across the country. Nationwide awareness campaigns must be implemented to challenge the prevailing stigma and educate individuals on the importance of mental well-being. Moreover, mental health services must be made affordable through government subsidies and the inclusion of mental health coverage in insurance policies. Educational institutions and workplaces should incorporate mental health discussions into their curricula and professional environments, fostering a culture where seeking help is normalized rather than ridiculed.

Nepal cannot afford to continue neglecting mental health. The consequences of untreated psychological distress extend beyond individual suffering, affecting families, communities, and the nation as a whole. To build a healthier and more resilient society, it’s crucial to recognize that mental health is just as vital as physical health. Therapy should not be seen as a luxury but as a fundamental right, accessible to all regardless of socioeconomic status or geographical location. Only through systemic reforms, awareness, and cultural shifts can we dismantle the barriers that prevent individuals from seeking the help they deserve.

March 27, a family trip from Kathmandu to Dang became a grim metaphor for Nepal’s institutional decay. What should have been a 10-hour journey stretched into a 21-hour nightmare, with a single 14-kilometer stretch Daunee consuming ten agonizing hours, an indictment of criminally neglected infrastructure. The exhaustion of travelers—sleep-deprived, hungry, and choking in dust—mirrors the nation’s broader dysfunction: structurally intact yet crippled by systemic rot. The collapse is not limited to roads. Just days earlier, a devastating fire at a Dang plywood factory destroyed nearly Rs 400m in assets and left over 500 workers jobless. 

Chief District Officer Krishna Prasad Lamsal’s desperate pleas for firefighting support from neighboring districts and municipalities laid bare the shocking lack of emergency preparedness. These are not isolated incidents. In Kathmandu, Janamorcha and Rastriya Prajatantra Party cadres blockaded Ratnapark and other areas, paralyzing the capital’s transit, while Prime Minister KP Oli squandered a high-level economic forum on rustic analogies of buffalo - ticks and political jibes rather than substantive policy. Together, they expose a governance trifecta: crumbling infrastructure, unchecked political obstructionism, and executive unseriousness.

Federalism’s broken promise

The 2015 Constitution of Nepal, informed by seminal federalism theories, promised transformative decentralization. Yet nine years into implementation, subnational governments remain systematically disempowered—chronically under-resourced, understaffed, and stripped of meaningful autonomy, while political elites (KP Oli, Deuba, Dahal, MK Nepal, BR Bhattarai, JN Khanal) engage in perpetual factionalism at the expense of federal governance.

This institutional failure manifests in alarming macroeconomic indicators: public debt now stands at 47 percent of GDP (Rs 27trn), exceeding the 35.43 percent sustainability threshold identified by NRB seasoned economist Laxmi Prasad Prasai (2024), with annual debt servicing consuming Rs 402bn. Concurrently, Nepal’s recent grey-listing by the Financial Action Task Force (FATF) for failing to combat sophisticated financial crimes including systemic tax evasion and fraud further underscores institutional decay. Compounding this crisis is a perverse bureaucratic culture where civil servants demand additional ‘facilitation fees’ from citizens for routine services, despite receiving full salaries and allowances. This rent-seeking behavior, institutionalized at all levels of government, epitomizes how Nepal’s federal transition has been hijacked—not by constitutional design, but by entrenched interests that perpetuate centralized predation under the guise of federalism.

Critical infrastructure—Narayanghat-Butwal Highway, Nagdhunga Tunnel, Melamchi Water, Mugline–Pokhara Highway—remains mired in delays. Meanwhile, 6,200 youths leave the country daily for foreign employment, a stark exodus underscoring Nepal’s failure to secure its own future. The Local Government Operation Act (2018) remains a paper tiger, with provincial postings treated as bureaucratic exile. Subnational governments face chronic 23 percent budget shortfalls, while resources are allocated based on electoral patronage rather than developmental need.

The path forward

Nepal stands at an inflection point. Federalism’s promise has been hijacked by a new mind set of centralism, where even hiring school teachers requires Kathmandu’s approval. Three urgent reforms are critical:

• Administrative federalism: Devolve personnel and fiscal authority to subnational governments, ending Singhdurbar’s suffocating control,
• Fiscal federalism with teeth: Guarantee provincial revenue autonomy and performance-based funding, and
• Enforced accountability: Implement independent audits of federal spending, as long demanded by the Financial Comptroller’s Office.

Without immediate corrective action, Nepal risks transforming its federal experiment from a beacon of post-conflict hope into yet another case study in constitutional failure. The stranded travelers, the jobless workers, and the millions trapped in this institutional purgatory deserve more than a government that mistakes inertia for governance. The time for reform is now—before the paralysis becomes permanent.

In 2081, Nepal navigated a transformative yet turbulent digital landscape, balancing ambitious technological and governance advancements with persistent challenges in digital rights, privacy, and cybercrime. The country strived to cement its place in the global digital arena while grappling with the complexities of regulating an increasingly connected society.

Ambitious digital vision and infrastructure expansion

The government’s commitment to digital progress was evident in its declaration of 2024–2034 as the ‘IT Decade’, a vision backed by Rs 7.25bn allocated for ICT projects in FY 2081/82. This funding fueled broadband expansion, IT park development, and efforts to create a thriving ICT hub aimed at generating jobs and boosting digital payments and e-commerce. Internet penetration soared to 99.38 percent, a remarkable achievement, though rural areas still faced connectivity gaps, highlighting the ongoing digital divide. Initiatives like integrating national databases and automating public services advanced digital governance, with the Nagarik App, formalized under amendments to the Good Governance Act, enabling seamless access to public services via electronic devices. 

Policy and legislative developments

Significant policy advancements shaped the year. The Social Media Operation, Usage, and Regulation Bill, 2081 tabled in Parliament aimed to regulate social media platforms and to moderate social media content. Likewise, draft Information Technology and Cybersecurity Bill, 2080, aimed to regulate online spaces and enhance cybersecurity was released for public consultation. However, both the bills drew criticism for potentially restricting free speech and privacy. Similarly, the Media Council Bill, 2081, sought to promote self-regulation in online media but raised concerns about its regulating agency’s independence and alignment with federalism. A concept paper on Artificial Intelligence (AI) and the Draft AI Policy, 2081, outlined plans to leverage AI across sectors, emphasizing clear policies and global standards. Regulatory efforts also targeted virtual currencies to curb money laundering, while amendments to the Industrial Enterprises Act recognized startups as distinct entities to foster innovation. The E-Commerce Act, 2081, was finally made into law to regulate online transactions and ensure transparency for consumers and businesses.

The draft E-Governance Blueprint and Draft Digital Nepal Framework 2.0 laid out bold plans to modernize public services, enhance digital infrastructure, and address past challenges like weak coordination and limited technical capacity through phased implementation and skill development. The Council of Ministers provided conceptual approval for drafting the Electronic Good Governance Commission Bill to combat corruption, and the Supreme Court’s ruling to uphold mandatory national identity cards for public service access, despite legal challenges, reinforced the push for centralized digital systems—though it sparked debates over accessibility.

Digital rights and privacy at stake 

Digital rights faced significant hurdles, with freedom of expression under strain. Prosecutions under the Electronic Transactions Act (ETA) targeted individuals for political comments, alleged defamation, or disruption, raising fears of a chilling effect on free speech. Critics argued the ETA is being misused to suppress dissent, a concern echoed in the Press Council Nepal’s expanded scrutiny of YouTube and online media, which sparked debates over regulatory overreach. The judiciary’s actions, such as the Sidhakura contempt case, further intensified scrutiny of media freedom. The lifting of the TikTok ban on 22 Aug 2024, was a victory for digital rights, but the lack of transparency around the decision left questions unanswered. The Ministry of Communication and Information Technology’s Directives on Managing the Use of Social Media, 2080, required platforms like TikTok and Facebook to establish local offices and moderate content, yet only TikTok, Viber, and WeeTok complied. A 30-day ultimatum for social media registration in 2081 marked a shift toward stricter enforcement, with potential bans for non-compliant platforms like Meta and X. Minister for Communications and Information Technology, Prithvi Subba Gurung, warned of shutting down social networks if they failed to register by April 13, 2025, emphasizing the urgency of compliance.

In 2081, Nepal faced significant internet disruption, including a major outage on National ICT Day, May 2, caused by disagreements over RTDF taxation between ISPs and the Ministry of Communications (MoCIT).

Further internet connections were disrupted in various places due to natural calamities, beautification of the city, and floods damaging the power supplies, leading to the shutdown of several base transceiver stations (BTS) and cutting off communication in affected areas.

The Supreme Court’s Sept 2024 ruling against unauthorized data access by Nepal Telecom reaffirmed privacy rights, but international reports like CIVICUS highlighted Nepal’s obstructed civic space, citing media censorship and reprisals against activists.

In a related development, the Department of Transport Management, following an appeal by a law student under the Right to Information Act, rectified its practice of publishing personal data such as citizenship numbers in driving test results. The department admitted this breach of privacy laws and committed to upgrading its software to prevent future violations. 

Rise of mis/disinformation and deepfake materials 

Social media also became a breeding ground for misinformation, deepfakes, and racially motivated attacks, with manipulated videos, false narratives, and unchecked mis/disinformation spreading widely. As Nepal’s digital ecosystem grows, combating false and misleading information, particularly during critical moments like elections or public protests, remains a significant challenge. These threats underscore the need for comprehensive strategies to enhance media literacy, promote responsible digital practices, and introduce effective policies addressing disinformation and digital manipulation.

Surge in cybercrime and systemic vulnerabilities

The year was marred by a cybercrime surge, with the Nepal Police Cyber Bureau recording 19,730 FIRs in FY 2080/81—a tenfold rise from five years earlier—and 13,426 complaints within nine months of 2081/82. Cases spanned financial fraud, phishing scams, social media impersonation, and hacking, with incidents like the theft of Rs 34.2m from F1 Soft’s bank account and data breaches by Khalti employees exposing systemic vulnerabilities. Fraudulent schemes exploiting trusted brands, fake government grants, and illegal crypto transactions targeted vulnerable groups, particularly youth and students. The NRB pushed for stronger KYC procedures, real-time monitoring, and public awareness, but the volume of cases strained resources.

Major cybersecurity and infrastructure threats

In 2081, Nepal faced significant cybersecurity challenges, marked by high-profile incidents such as DDoS attacks on government servers and recurring cyberattacks on local government websites, disrupting essential services. Notable breaches included the hacking of the National Vigilance Center’s website, resulting in the loss of registration data, and a malware attack on the Passport Department, causing delays in passport services. Other incidents exposed vulnerabilities in the teacher personnel records system and Tribhuvan University’s online exam platform. Additionally, over a dozen ministry websites went offline due to negligence in renewing licenses, and funding shortages threatened the stability of key digital infrastructure, such as the Integrated Data Management Center and Disaster Recovery Centre. A particularly alarming breach involved the hacking of Nepal’s public grievance platform, Hello Sarkar, by the Russian hacker group ‘Ghudra’, which sold sensitive citizen data on the dark web. Despite the adoption of a National Cybersecurity Policy in 2080, Nepal’s cybersecurity ranking fell to 100th globally, highlighting the government’s struggles to improve its digital security infrastructure.

In 2081, Nepal’s digital journey was a paradox of progress and peril. Ambitious ICT and e-governance initiatives laid a foundation for a connected future, but rural connectivity gaps, regulatory overreach, and rampant cybercrime demanded urgent action. The tension between digital advancement and democratic freedoms underscored the need for balanced policies that protect rights while fostering innovation. As Nepal advances toward its ‘IT Decade’ goals, the lessons of 2081 emphasize inclusive access, transparent governance, and robust cybersecurity as critical to shaping a resilient digital future.