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The government has taken a significant step toward restructuring the aviation sector as the cabinet last week approved two crucial bills aimed at splitting the Civil Aviation Authority of Nepal (CAAN) into regulatory and service provider entities.

The cabinet meeting held on Friday green-lit the Bill to Amend and Consolidate Laws Related to Civil Aviation Authority of Nepal, 2024, and the Nepal Air Service Authority Bill, 2024. Minister for Culture, Tourism and Civil Aviation Badri Prasad Pandey had presented these bills to the cabinet on Sept 6 after the law ministry approved their drafts. This has paved the way for Minister Pandey to table the bills in parliament. 

The primary objective of these bills is to improve aviation safety by ending CAAN’s dual role as both regulator and service provider.  The restructuring of CAAN is crucial for the aviation sector as Nepali airlines have been unable to fly into European airspace since Dec 2013 when the European Union put Nepal in its air safety list following a Sita Air Twin Otter crash in the Manohara river in September 2012, which claimed the lives of all 19 onboard.

Earlier in October this year, the EU’s ambassador to Nepal Veronqiue Lorenzo said the ban can be removed if the law is passed to split the CAAN into a service provider and regulatory body.

Since the European Union Aviation Safety Agency (EASA) earlier this month lifted the flight ban on Pakistan International Airlines three months after Pakistan divided its civil aviation authority into three separate entities—Pakistan Civil Aviation Authority, Bureau of Aircraft Safety Investigation and the Pakistan Airports Authority—tourism ministry officials are hopeful that unbundling of CAAN into regulator and service providing entities would lead to the removal of Nepal from the air safety list.

The government first mooted the plan to split CAAN in 2007. The Third Interim Plan (2007/08-2009/10) said that recommendations from a study panel to split roles of CAAN as the service provider in civil aviation, airport operator and regulator were being considered.

In Oct 2018, a sub-committee of the International Relations Committee of the House of Representatives under former PM Madhav Kumar Nepal directed the government to immediately split the aviation body. The sub-committee said in its report that Nepal’s aviation industry is facing problems at the national and international levels due to the delay in the separation. The panel had directed the government to pass the civil aviation bills immediately.

Following the parliamentary committee’s direction, the then tourism minister Yogesh Bhattarai had tabled the bills in parliament in Feb 2020. 

In Aug 2021, the National Assembly unanimously approved the two bills. The International Relations and Tourism Committee had directed the then Prime Minister Pushpa Kamal Dahal to table the bills in the lower house of the federal parliament at the earliest in December last year, to no avail.

Ambassador of Pakistan to Nepal Abrar H Hashmi paid a courtesy call on Prime Minister KP Sharma Oli on Tuesday.

During the meeting held at the official residence of the Prime Minister at Baluwatar, they discussed various issues of bilateral relations and interest as well as increasing cooperation in trade, tourism, agriculture, renewable energy, disaster management, education and culture, the Prime Minister's Private Secretariat stated. 

On the occasion, PM Oli stressed that Nepal, from the position of SAARC Chair, has been making efforts to activate the South Asian Association for Regional Cooperation (SAARC) and SAARC-member countries should play a constructive role in it. 

Stating that there should be no adverse impact on regional organizations like SAARC even if there is any problem between any two countries, Prime Minister Oli said Nepal has been expanding its relation and collaborating with other nations keeping the justified national interests in mind from the position of expanding and collaborating for the position of sovereign and independent country.

Similarly, the Pakistani Ambassador said they were ready to host the SAARC Summit in Pakistan. He shared that Pakistan was willing to expand further cooperation with Nepal on various issues in the days ahead.

Who will succeed Nepali Congress (NC) President Sher Bahadur Deuba? This question dominates discussions within the party as Deuba’s tenure nears its end. According to the party statute, he cannot contest for a third term, setting the stage for what is expected to be a fierce competition among senior leaders to take up the party’s mantle.

Senior party figures have already begun internal lobbying and consultations. The stakes are high, as the NC faces increasing public dissatisfaction with its leadership. This discontent is not unique to the NC; major political parties across Nepal are under scrutiny for their inability to deliver on public expectations. The choice of the next NC president is being watched closely, not only domestically but also internationally. The party’s rank and file is  yearning for a dynamic leader who can revitalize its organizational structure and restore public trust, which has eroded significantly over the past few years amid the rise of new political forces.

Deuba has so far refrained from signaling any preference for his successor and is expected to maintain this neutrality. In a recent interaction with the media in Biratnagar, he dismissed speculations about endorsing a candidate, stating that the party’s general convention will decide the new leadership. However, his inner circle—leaders like Purna Bahadur Khadka, Bimalendra Nidhi and Prakash Man Singh—are all keen to secure his endorsement. Another potential contender, Bal Krishna Khand, was once considered a strong candidate but has faded into the background due to his alleged involvement in the fake Bhutanese refugee scandal. For now, none of these leaders have formally announced their candidacy, but behind-the-scenes maneuvering is intensifying.

Among these figures, Khadka stands out for his loyalty, as he has never openly challenged Deuba’s leadership whereas Nidhi and Singh have previously contested against Deuba, alongside Shekhar Koirala, in the party’s 14th General Convention. During the second round of that election, Nidhi and Singh strategically supported Deuba, helping him defeat Koirala. As a gesture of gratitude, Deuba later backed Singh’s spouse, Srijana Singh, as the NC candidate for Kathmandu Mayor in the local elections.

Singh currently holds the influential positions of Deputy Prime Minister and Minister for Urban Development. Nidhi, despite a history of strained ties with Deuba after contesting for the presidency, is actively seeking to mend fences. He argues that his seniority and status as a prominent Madhesi leader make him a deserving candidate. However, his task is far from easy, as he must navigate both internal rivalries and the broader dynamics of party politics.

From the anti-Deuba camp, two prominent leaders—Shekhar Koirala and Gagan Thapa—are gearing up for the race. Koirala has already launched a nationwide campaign to bolster his candidacy. In contrast, Thapa is taking a more calculated approach, weighing his moves carefully to avoid jeopardizing his relationship with Deuba. Over the years, the two have found common ground on several issues, which has eased tensions between them. Deuba has even publicly praised Thapa’s contributions within and beyond the party, signaling a certain level of mutual respect.

At the same time, there is speculation that Deuba is working to elevate his spouse, Arzu Rana Deuba, to a senior party position—possibly vice-president—during the upcoming 15th General Convention. This potential move adds another layer of complexity to the ongoing leadership contest, as it could shift internal alliances.

Koirala, for his part, remains vocal in his criticism of the party’s leadership and the government’s performance. Thapa, in contrast, has adopted a more measured tone, carefully calibrating his public statements to preserve his rapport with Deuba. Despite his relatively weak organizational base, Thapa enjoys strong support among the party’s youth, who view him as a symbol of hope and renewal. His popularity among younger members gives him a distinct advantage, even as he faces challenges in consolidating his position within the broader party structure.

It remains unclear whether Koirala and Thapa will form another alliance, as they did in the 14th convention, or choose to compete independently. In the previous convention, their alliance saw Koirala lose the presidency while Thapa secured his position as general secretary. This time, both leaders are carefully weighing their options. All prospective candidates are eager to secure Deuba’s endorsement, given his strong influence over the party’s Central Working Committee, provincial structures and local levels. However, Deuba’s silence on the matter has left many in his camp anxious.

Candidates like Koirala and Thapa have reportedly reached out to Deuba’s allies, offering positions in their potential leadership teams to win support. Yet, insiders say Deuba is likely to remain non-committal until the eleventh hour, a strategy that could leave his faction in a state of uncertainty. As the NC moves closer to this crucial juncture, the party’s leadership race promises to be a defining moment for its future.

Rastriya Swatantra Party President Rabi Lamichhane has been suspended from the post of lawmaker.

Issuing a notice on Monday, the Parliament Secretariat informed that former Home Minister Lamichhane, who was elected from Chitwan constituency-2, has been suspended from his position as a lawmaker.

The District Police Office, Kaski on December 16 had concluded its investigation into the cooperative fraud case involving Lamichhane and submitted its report to the District Attorney’s Office on Monday.

The report recommended prosecuting 51 individuals, including Lamichhane, former DIG Chhabilal Joshi, Ram Prasad Khanal, and Lila Pachhai, who are currently in police custody. Most of the other suspects remain at large.

They were charged with cooperative fraud, organized crime, and money laundering. Kaski police had also recommended recovery of around Rs 1.51bn. The investigation revealed that Lamichhane and others were involved in irregularities concerning funds from Suryadarshan Cooperative in Kaski, which were allegedly diverted to Gorkha Media Network and misused.

Evidence gathered during the course of investigation includes checks issued by Lamichhane to repay loans taken from multiple cooperatives. Lamichhane, however, has claimed that the checks in question were left in a drawer during his tenure as the managing director of Gorkha Media Network, and someone else may have filled them out without his consent. 

The investigation, which began with Suryadarshan Cooperative, expanded to four other cooperatives: Kathmandu’s Swarnalakshmi Cooperative, Chitwan’s Sahara Chitwan Cooperative, Birgunj’s Sano Paila Cooperative, and Nepalgunj’s Samanata Cooperative. 

Police investigation had revealed that Lamichhane and his associates took out loans, including Rs 4.6m each from Swarnalakshmi Cooperative, to purchase vehicles in Lamichhane and GB Rai’s names.