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Nepal has urged for putting Buddha's teachings into practice for world peace, stating that it shows the world the path of peace and cooperation.

Permanent Representative of Nepal to the United Nations, Lok Bahadur Thapa, made this call while addressing the Commemorative Event of the International Day of Vesak 2026 at the UN, in New York, USA on Monday. 

The event was jointly organized by the Permanent Missions of Sri Lanka and Thailand.

In his remarks, Thapa highlighted Lumbini, Nepal - the birthplace of Lord Buddha - as a global symbol of peace, spiritual renewal, and shared human values. 

He underscored that the timeless teachings of Buddha - compassion, non-violence, mindfulness, unity, and wisdom - remain profoundly relevant in a world facing conflict, division, inequality, and climate challenges.

“Peace begins within and must be consciously cultivated,” he noted, calling for greater solidarity, dignity, justice, and cooperation among nations.

Vesak is not a religious celebration, but a collective call to advance peace, harmony, and a more just and sustainable future for humanity.

The program included a high-level segment, religious blessings and a special address by the Most Venerable Bhikku Paññakāra who led the 2,300 miles of “Walk for Peace” as well as statements by participating Member States, according to the United Nations.

The United Nations General Assembly, through its resolution 54/115, recognized the Day of the Full Moon in the month of May as the International Day of Vesak, commemorating the birth, enlightenment and passing away of Lord Buddha. 

This sacred occasion provides a meaningful opportunity for the international community to reflect on the universal values embodied in the Buddha’s teachings, which continue to inspire peace, compassion and harmony across cultures and societies.

Nepal lost to Scotland by two runs in the match held at TU Cricket ground under the ICC Men's Cricket World Cup League 2 on Tuesday. 

Despite half centuries from vice captain Dipendra Singh Airee and Gulshan Jha, Nepal fell short by just two runs in the match decided by the DLS method, after 50 overs could be completed in the second innings due to rain.

Batting first after winning the toss, Scotland scored 243 runs at the loss of eight wickets in allotted 50 overs. 

Opener George Munsey scored 75 runs off 62 balls followed by Finlay McCreath and Micheal English who scored 35 and 34 runs respectively.

Leg Spinner Sandeep Lamichhane was the pick of the Nepali bowlers, taking four wickets in 10 overs and limiting the visitors to a par score. 

Karan KC and Nandan Yadav chipped in with two wickets each.

However, Nepali bowlers gave away too many extra runs, at 16 including 11 wides.

As rain affected the second innings, Nepal were given a revised target of 221 runs in 39 overs. 

Gulshan Jha top-scored for Nepal with 61 runs off 35 balls, including five sixes and two fours. 

Airee scored 55 runs off 49 balls while captain Rohit Paudel contributed 32 runs off 46 balls, before being bowled out by eventual player-of-the-match Brad Currie. He took three wickets in eight overs, giving away 43 runs.

Nepal will now face the United States of America in the match to be held on Thursday, May 14.

In the points table including eight teams, Nepal languishes at the 7th position, with 18 points in 25 matches. 

Nepal have won eight matches and lost 15 so far. 

The USA tops the table with 36 points in 24 matches.

The International Monetary Fund (IMF)'s Executive Board has decided to extend the timeline of the Extended Credit Facility (ECF) arrangement implemented for Nepal by an additional two months. 

According to the press release issued by the IMF on Wednesday, the program would continue up to  July 11, 2026 with the extension. 

The timeline has been extended to allow sufficient time for the completion of the seventh and final review of the ECF arrangement, the IMF informed. 

The 38-month IMF arrangement for Nepal was approved on January 12,  2022. 

Under this program, Nepal obtained access equal to 180 percent of its 'Special Drawing Rights' (SDR) quota, amounting to 282,42 million US dollars. 

According to the IMF, two additional months were added to provide sufficient time for the seventh and final review under the IMF program. 

Nepal has committed, through the IMF program, to maintaining financial stability, strengthening foreign exchange reserves, improving public financial management, and advancing economic reform programmes.

The eleventh meeting of the Nepal–India Joint Committee on Koshi and Gandak Projects (JCKGP) concluded successfully. 

The meeting was held in Kathmandu on April 30-May 1. 

The Nepali delegation was led by Mitra Baral, Director General, Department of Water Resources and Irrigation, while the Indian delegation was led by Santosh Kumar Mall, Principal Secretary, Water Resources Department, Government of Bihar, India.

During the meeting, both sides undertook a comprehensive review of the implementation of decisions reached in previous JCKGP meetings and discussed a broad spectrum of technical, operational, and administrative issues related to the Koshi and Gandak Projects, according to Baral. 

Both parties emphasized the importance of continued bilateral cooperation in the management of Koshi and Gandak Projects with discussions focused on the operation and maintenance of infrastructure, flood management, erosion control, water supply for irrigation, and data sharing mechanisms for mutual benefits.

They also  agreed to continue working closely for the sustainable operation and maintenance of the  Koshi and Gandak Projects.

Over the past decade, the Nepali economy has faced multiple major shocks, including the devastating 2015 earthquakes, the COVID-19 pandemic, and political unrests such as last September’s Gen Z movement, all of which disrupted growth momentum and exposed structural vulnerabilities.

Despite notable strides in poverty alleviation and the achievement of relative macroeconomic stability, the structural foundations of Nepal’s economy remain precarious. The current landscape is characterized by a high degree of vulnerability, driven by an over-reliance on remittance inflows, a low-productivity subsistence agricultural sector, and a stagnant export base. These systemic imbalances have acted as a persistent bottleneck to achieving broad-based, inclusive, and sustainable development.

At the same time, Nepal is preparing for graduation from Least Developed Country (LDC) status in November. While this transition represents a landmark achievement in the country’s development trajectory, it introduces a complex set of challenges. The impending loss of preferential trade treatments and international support measures necessitates a radical shift toward enhancing domestic competitiveness and building post-graduation resilience.

Below is a detailed analysis of the White Paper issued by the Ministry of Finance earlier this week, highlighting the strategic imperatives for this transition. 

External Sector Pressures and Global Risks

Nepal’s external stability is becoming increasingly entangled with global geopolitical shifts, most notably the escalating tensions within the Middle East. This region serves as the primary pillar of Nepal’s foreign exchange reserves, hosting approximately 1.75 million Nepali workers who contribute nearly 37.4% of total remittance inflows. Recent disruptions, including a two-month suspension of labor migration and the return of thousands of workers, have exposed the fragility of this dependency. Such instability poses a triple threat to the national economy by endangering steady remittance flows, straining foreign exchange reserves, and depressing household consumption. These pressures are already manifesting through inflated import costs, shortages of essential agricultural inputs like fertilizer, and heightened transportation costs that stifle both trade and the tourism sector.

Beyond regional conflicts, Nepal’s inclusion on the Financial Action Task Force (FATF) grey list has emerged as a significant hurdle for international financial governance and national credibility. The perception of weak enforcement in anti-money laundering and countering the financing of terrorism (AML/CFT) frameworks directly threatens foreign investment, cross-border banking relationships, and trade financing. While the government has initiated reforms across 16 strategic areas identified by the FATF, the progress remains uneven due to institutional fragmentation and limited enforcement capacity. Under the new government led by Prime Minister Balendra Shah, there has been a visible intensification of money laundering investigations and high-profile arrests. While these actions signal a firm commitment to international compliance, they have also sparked concerns that an overly aggressive or unpredictable regulatory environment might inadvertently dampen the domestic investment climate.

Structural Transformation of the Economy

Nepal is undergoing a structural shift characterized by premature de-industrialization and a growing dominance of the service sector. Agriculture employs about 62% of the population, its contribution to GDP stands at a disproportionately low 25.2%, growing at around 3% annually. Low mechanization, fragmented landholdings, and weak commercialization continue to limit productivity.

Manufacturing remains underdeveloped, contributing only 5.4% of GDP with sluggish growth of 2.9%. Dependence on imported raw materials, low technological adoption, and weak investment have prevented industrial expansion. The service sector has expanded rapidly, but largely driven by remittance-fueled consumption rather than productivity-led transformation. This has led to an unbalanced and consumption-oriented economic structure.

Over the past decade, the manufacturing sector’s contribution to total GDP has averaged only 5.4%. During this period, while the overall economy expanded at an average rate of 4.2%, the manufacturing sector grew by just 2.9% on average.

A combination of factors, including insufficient investment, heavy dependence on imported raw materials, limited adoption of innovation and advanced technology, and high production costs, has weakened the country’s competitiveness, resulting in a stagnant industrial base.

Although the service sector has expanded, it has not generated sufficient decent employment opportunities. Its growth has been concentrated mainly in trade, real estate, public administration, and traditional financial services. The development of high value-added IT-based services, knowledge-based industries, and other innovative sectors remains limited. To build a competitive economy with skilled employment, Nepal needs to expand modern service industries such as artificial intelligence, robotics, data centers, and digital technologies.

Total investment has declined significantly in recent years. It stood at 39.5% of GDP in fiscal year 2017/18 but fell to 28.1% by fiscal year 2024/25. Weak government capital expenditure and declining private sector investment have further dampened the overall investment climate.

Over the past decade, private sector investment averaged 19.6% of GDP. However, since the COVID-19 pandemic, this share has gradually declined, reaching 14.7% in fiscal year 2024/25. This slowdown in investment is constraining sustainable, inclusive, and high economic growth, as well as job creation. Addressing this will require improvements in the business environment, stronger government capacity to execute capital spending, and measures to boost aggregate demand.

Revenue Mobilization

In recent years, revenue mobilization has shown signs of slowing. In the five fiscal years preceding the most COVID-19-affected year (2019/20), revenue grew at an average annual rate of 14.9%. In the subsequent five years, this growth rate has declined to 8.7%.

Similarly, the ratio of federal revenue to GDP fell from 21.5% in fiscal year 2020/21 to 19.3% in 2024/25. Over the past decade, revenue mobilization has grown at an average annual rate of 12.3%. Revenue collection reached Rs 780 billion so far in the current fiscal year, marking a 4.4% increase compared to the same period last year. 

Revenue collection has consistently fallen short of targets. Over the past decade, actual collections have averaged only 87.6% of budgeted estimates. By mid-February, revenue collection stood at 82.6% of the target for that period and just 50.5% of the annual target.

Improving revenue performance will require stronger efforts to curb tax evasion, broaden the tax base, simplify tax administration, and accelerate digitalization. A significant share of revenue remains tied to imports and consumption. About 45% of tax revenue is derived from goods imports, while the domestic production and service sectors contribute relatively little. This leaves revenue vulnerable to external shocks.

In 2024/25, income tax accounted for 25.2% of total revenue, value-added tax (VAT) 29%, customs duties 19.6%%, and excise duties 14.8%. Non-tax revenue has contributed only around 11%, partly due to outdated rates and inefficiencies in collection.

Key Indicators

Nepal’s growth averaged 4.2% over the past decade, ranging from -2.4% to 9%. For fiscal year 2025/26, growth is projected at around 3.5%, although the Asian Development Bank has estimated a lower 2.7%, citing political uncertainty and external shocks. Inflation is expected to remain moderate at 3.7% in 2025/26 but may rise to 4.5% in 2026/27 due to demand pressures and global price volatility. Growth is expected to recover to around 5% in 2026/2027, supported by hydropower expansion, tourism revival, and improved domestic demand.

Labor migration has grown at an average annual rate of 28.6%, with over 839,000 labor approvals issued in 2024/25 alone. While remittances have stabilized the economy and reduced poverty, they have also created structural risks such as labor shortages, low domestic productivity, and dependency on external labor markets. Youth unemployment stands at 22.7%, while overall unemployment is 12.6%. Many workers remain in low-paid, informal, and insecure employment, highlighting the urgent need for domestic job creation.

Public debt has risen sharply from 22.5% of GDP in 2015 to 43.8% in 2024/2025, reaching Rs 2,674 billion. While still within manageable limits, there are concerns regarding debt productivity and allocation efficiency. Foreign aid dependency has declined to 14.6% of the budget, but the shift from grants to loans has increased repayment pressures. This has raised long-term fiscal risks for the country.

Nepal’s trade deficit averages 29.7% of GDP. Export accounts for less than 15% of total imports, while the country’s foreign trade is heavily dependent on India (59.5%) and China (18%).

While exports have increased significantly in nominal terms, nearly 40% of the country’s exports consists of re-exported edible oils, indicating weak domestic value addition and limited export competitiveness.

Although poverty has declined from 25.16% in 2010/11 to 20.27% in 2022/23, regional disparities are significant. Rural poverty (24.66%) remains higher than urban poverty (18.34%), and in some areas, multidimensional poverty exceeds 70%. Nepal’s Gini coefficient of 0.30 indicates moderate inequality, but regional and structural disparities persist. Human Development Index (HDI) stands at 0.622, ranking 145th globally, reflecting slow progress in health, education, and income.

Private sector credit increased from 55.2% of GDP in 2015/16 to 91.6% in 2024/25, higher than most South Asian economies. However, credit growth has slowed in recent years due to weak demand, political uncertainty, and low investment confidence. While deposits have grown steadily to Rs 7.746 trillion, supported by remittance inflows, credit growth remains weaker. This has resulted in excess liquidity in the banking system. Interest rates have also declined sharply, reducing returns for savers and reflecting weak economic demand.

Nepal received only $1.13 billion in foreign direct investment (FDI) over the past decade—just 0.2% of South Asia’s total. By 2025, total FDI stock stood at Rs 340 billion, with only Rs 10.84 billion inflow in the first eight months of the current fiscal year. This reflects weak investor confidence and highlights the need for improved governance, policy stability, and investment facilitation.

Nepal welcomed 1.158 million tourists with an average stay of 16.34 days in 2025. Hotel infrastructure has expanded significantly, with over 1,600 hotels and 222 star-rated hotels, offering more than 64,000 beds. However, weak air connectivity, inefficient airport operations, and limited transport infrastructure restrict full sector potential. Improving connectivity, digital tourism marketing, and diaspora engagement (NRNs) is essential to position Nepal as a global tourism hub.

Banking sector liquidity remains high due to weak credit demand. Excess liquidity reached Rs 904 billion by March 2025, reflecting imbalance between deposits and lending. Interest rates have declined sharply, with lending rates falling to 7.06% and deposit rates to 3.45%.

Budget size 

Resources have not been mobilized as planned, even as budget allocations have remained overly ambitious. Over the past decade, the average annual federal budget has amounted to 33.7% of GDP, while actual expenditure has averaged 26.8%\. 

The budget-to-GDP peaked at 39.4% in 2019/20, while it declined to 30.5% in fiscal year 2024/25. During this period, the budget’s average annual growth rate was 12.3%, but after the COVID-19 pandemic, this growth slowed to 4.1%.

Execution has also remained weak. Actual government spending amounted to 86% of the allocated budget in 2015/16, but fell to a low of 71.2% in 2020/21. This figure stood at 81.3% in 2024/25. 

Over the past decade, capital expenditure has accounted for only 19% of total federal spending, while utilization has averaged 64.1% of total allocation. Capital spending is low, to begin with, and even then, a large share of allocated funds goes unused. This has undermined Nepal’s long-term development goals. Therefore, it is necessary to efficiently allocate financial resources to high-return projects and address implementation bottlenecks to increase capital expenditure.

Meanwhile, recurrent expenditure continues to dominated government spending. Over the past decade, recurrent expenditure has made up an average 66.8% of total federal spending. Capital expenditure accounted for 19%, while financial management expenditure stood at 14.2%. In 2024/25, recurrent expenditure accounted for 63.2 percent, capital expenditure fell to 14.8%, and financial management spending rose to 22%. 

It is necessary to restructure government institutions, clearly define responsibilities among the three levels of government, and reduce unnecessary institutions and staff positions in the federal structure in order to contain recurrent expenditure. 

Opportunities for Transformation

Despite persistent structural challenges, Nepal has significant long-term growth opportunities driven by hydropower exports and industrialization; tourism expansion through promotion of cultural and ecotourism; digital economy, IT services and AI; and young labor force. 

The government has set an ambitious goal of achieving middle-income status within the next five to seven years, targeting GDP of $100 billion and per capita income above $3,000.

While external risks such as geopolitical instability and financial compliance challenges are immediate concerns, the country’s deeper challenges remain weak industrialization, a widening trade deficit, and heavy dependence on remittances.

That said, Nepal also possesses strong foundations for transformation—hydropower potential, tourism assets, and a young workforce. The key challenge lies in shifting from a remittance-dependent, consumption-driven economy to a productive, investment-led, and innovation-based growth model. The coming years will determine whether Nepal can successfully transition toward a more productive, investment-led, and innovation-driven economy.

A concessional loan agreement has been signed between the Government of Nepal and the Asian Development Bank (ADB) for the implementation of the Digital Transformation Project. 

The agreement for a USD 40 million concessional loan was signed by Finance Secretary Dr Ghanashyam Upadhyay and ADB Country Director for Nepal Arnaud Cauchois during a ceremony held at the Ministry of Finance today. 

The project is the first in South Asia to be co-financed under the ADB-World Bank Mutual Reliance Framework, according to a press release issued by the Finance Ministry today. 

The project will strengthen the government's data hosting and cybersecurity infrastructure to enhance the security and resilience of the government digital system.

It will support key initiatives such as developing an integrated citizen service portal, improving the national social registry, establishing a secure government-wide data exchange platform for safe and efficient information sharing, and digitalizing about 11 high impact government services. 

The reforms supported by ADB and the World Bank will make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes, helping build greater trust between citizens and public institutions.

The project will be implemented by the Ministry of Communications and Information Technology. 

It aligns with Nepal’s Digital Nepal Framework 2.0, Sixteenth National Plan, e Governance Blueprint, and ADB’s country partnership strategy for Nepal, 2025–2029, which identifies digital transformation as a core crosscutting priority.

The World Bank will also provide USD 40 million as a concessional loan as the lead lender. 

The loan agreement has already been signed with the World Bank. 

The project's key programs include upgrading government digital platforms and shared services, strengthening cybersecurity preparedness, and developing institutional and human resource capacity to ensure the operation and sustainability of digital systems.

The government today made public 'Nepal's Current Economic Situation Report-2083', assessing the country's current overall socio-economic situation.

Finance Minister Dr Swarnim Wagle had decided to prepare the document as soon as he took over the responsibility of the Ministry of Finance after the formation of the new government. 

According to the ministry, this situation report aims to present an objective picture of the country's current economic situation and to help guide the formulation of future policies, plans and budget.

The situation report acknowledges that Nepal's economy is currently beset by many challenges but it concludes that there are ample multifaceted opportunities for transformation. 

If a stable government, good governance and an investment-friendly policy environment can be created the confidence of the private sector will be restored and domestic and foreign investment will increase. This is expected to expand the manufacturing sector, create jobs and accelerate economic activity. 

The hydropower sector has been presented as a major opportunity, which could generate stable foreign income through cheap and reliable energy production, industrialization, expansion of the service sector and electricity export. 

The position paper states that income and employment can be created in rural areas through the integrated development of mountain, culture and community-based tourism. 

International competitiveness can increase if tourism infrastructure, service quality, mobility and destination management are improved.

Similarly, the document has placed artificial intelligence, robotics, information technology services, business process outsourcing and digital entrepreneurship as major opportunities for the coming decade. 

Production, income and exports can be increased through modernization of the agricultural sector. Investment in high-value crops, animal husbandry, horticulture development and agro-processing industries are the way forward.

Similarly, industrial development, supply chain strengthening, special economic zones (SEZs), industrial clusters and trade facilitation have been mentioned as the main tools for building an export-oriented economy. The paper also points out the possibility of making Nepal a regional 'transit trade hub' by taking advantage of its geographical location.

It is necessary to increase investment in transport, energy, irrigation and digital infrastructure sectors. There is a possibility of moving forward large projects through the Public-Private Partnership (PPP) model.

Similarly, it has been emphasized that remittances should be linked to entrepreneurship, skill development and manufacturing sectors. 

A policy is necessary to utilize the experience and skills of migrant workers who have returned from foreign employment.

The paper suggests increasing financial inclusion, digital banking, and long-term investment tools in the financial sector. Income, production, and employment can be increased through sustainable use of minerals, water, land, forests, and herbs available within the country. Emphasis is placed on adopting a policy of resource utilization while maintaining biological and ecological balance.

According to the report, an average of seven percent economic growth can be achieved from the coming fiscal year. 

It is set to increase per capita income to more than USD 3000  within five to seven years and bring the size of the economy to close to one hundred billion US dollars. 

For this, 15, 000  megawatts of electricity generation capacity within five years, completing national pride projects within two years, strengthening the interconnection between agriculture, industry, and tourism, building quality tourism infrastructure, and expanding the digital economy have to be carried out.

Nepal’s political landscape has entered an unusual and potentially transformative phase with the rise of Balendra Shah. Popularly known as Balen, the 36-year-old leader assumed office on March 27, 2026, following a sweeping electoral victory that delivered his party, the Rastriya Swatantra Party (RSP), a near two-thirds majority in the 275-member House of Representatives (HoR), the lower house of federal parliament.

This outcome alone would have been remarkable in any context, but in Nepal—where coalition instability has been the norm since the restoration of democracy in 1990—it represents a profound political rupture. The March 5 parliamentary election was shaped by extraordinary circumstances. The protests of September 8–9, which led to the fall of the government led by KP Sharma Oli and the dissolution of Parliament, created a volatile yetdecisive moment. The deaths of 19 students during those protests became a rallying point for public anger and a symbol of state failure.

The election that followed was not merely a contest for power; it was a referendum on an entire political order. Established parties such as Nepali Congress (NC), Communist Party of Nepal (Unified Marxist–Leninist), and Maoistswere voted out, marking the first time since 1990 that they were collectively excluded from power. Their strength declined significantly, putting pressure on long-time leaders to step down. 

This shift was also generational. Out of the 275-member HoR, more than 100 members are below 40. The average age of lawmakers has dropped to 44 from the earlier 54. The cabinet is also dominated by younger faces: out of 15 ministers, 9 are below 40. The rise of Shah reflects the aspirations of a younger electorate—often described as the Gen Z movement—which demands accountability, efficiency, digital freedom, and a break from entrenched political practices.

More importantly, the election results have created a rare sense of optimism about political stability. For decades, Nepal has struggled with short-lived governments and policy inconsistency. The expectation now is that a strong majority government could complete its full five-year tenure—something no administration has achieved in over three decades.

Against this backdrop, the first month of Balen Shah’s government has been closely scrutinized. Early signs suggest a leadership that is energetic and assertive, but still grappling with the complexities of governance. In some areas, the new prime minister has broken from past traditions.

One key signal is that he is not operating under the influence of anyone, including his own party. Although he is a senior leader of the RSP, he appears intent on running an apolitical government, perhaps influenced by his experience as an independent mayor of Kathmandu. Similarly, he has been avoiding public programs and focusing on administrative work in Singha Durbar. Consultations between PM Shah and Party Chairman Rabi Lamichhane on government issues remain a matter of guesswork. PM Balen has not shown interest to attend party meetings. 

PM Shah is communicating more through actions than rhetoric. However, he is under scrutiny for not speaking in Parliament or engaging with the media. Except on a few issues, opposition parties have not taken a hard position on government decisions, and as Prime Minister he has not reached out to opposition parties, except the interaction with lawmakers form all political parties. 

One of the government’s immediate priorities was to ensure accountability for the killings during the September protests. Acting on a report by former justice Gauri Bahadur Karki, the administration initiated action against key figures from the previous government, including Ramesh Lekhak. The arrests of Oli and Lekhak sent a powerful message that even the most influential leaders could be held accountable. For many citizens—especially the families of the victims—this was a long-overdue step toward justice.

However, the manner in which these arrests were carried out has sparked debate. Critics, including legal experts and opposition parties, have questioned whether due process was followed. A month later, the government attorney has yet to file formal charges, reportedly due to insufficient evidence. This delay underscores a critical challenge: while political will is essential for accountability, it cannot substitute for institutional capacity and legal rigor. If the government is to build a credible rule-of-law framework, it must ensure that its actions are not only decisive but also procedurally sound.

On the governance front, the administration has moved quickly to outline its agenda. The first cabinet meeting introduced a 100-point plan to be implemented within 100 days, with a strong emphasis on anti-corruption and administrative reform. This ambitious roadmap is designed to demonstrate urgency and commitment, and there have already been some tangible steps in this direction.

The formation of a high-level commission to investigate the assets of public officials addresses a long-standing public perception that corruption is deeply embedded within the state apparatus. Similarly, law enforcement agencies have launched investigations into businessmen and intermediaries accused of financial misconduct. Prime Minister Shah has also taken action within his own cabinet, dismissing two ministers over allegations of financial misconduct and conflicts of interest.

The resignation of Home Minister Sudan Gurung amid allegations of undisclosed business ties, and the controversy surrounding Labor Minister Deepak Kumar Sah, further highlight the government’s willingness to confront ethical lapses within its ranks. These moves have strengthened the perception that the administration is serious about integrity. 

There have also been modest improvements in public service delivery. Reports suggest that government offices are functioning more efficiently, with shorter waiting times and fewer bureaucratic obstacles. While these changes may seem incremental, they are significant in a context where inefficiency has long been normalized. The challenge will be to sustain and institutionalize these improvements rather than relying on short-term administrative pressure.

The new government has also taken measures to depoliticize state institutions such as universities and civil service, which has drawn mixed reactions. Some have said that it is a positive move, as state institutions over the past four decades were highly politicized, while others argue that the government’s decision to dismantle student unions and trade unions goes against the constitution.

The economic dimension presents a more complex picture. The private sector initially welcomed the emergence of a stable government, viewing it as an opportunity for policy consistency and economic reform. The administration’s emphasis on governance as the foundation for prosperity has resonated with business leaders, and some measures to improve the business environment have been well received.

At the same time, concerns have begun to emerge. The arrest of prominent businessmen as part of anti-corruption investigations has raised fears about the investment climate which is already worse. Business leaders have warned that such actions, if perceived as arbitrary or excessive, could discourage investment and even lead to capital flight. Finance Minister Swarnim Wagle has sought to reassure the private sector, emphasizing that enforcement actions will be limited and necessary, particularly in the context of efforts to remove Nepal from the Financial Action Task Force (FATF) grey list.

This tension reflects a broader dilemma: how to enforce accountability without undermining economic confidence. A credible reform agenda must strike a balance between strict enforcement and predictability. Investors need assurance that rules will be applied fairly and consistently—not selectively or unpredictably. Nepal’s economy is forecast to grow by 2.7 percent in the fiscal year 2026, down from 4.6 percent in the previous year, according to the Asian Development Bank.

In foreign policy, the government has adopted a cautious and pragmatic approach. It has signaled continuity rather than major changes, with a focus on economic diplomacy and balanced relations with neighboring countries. The idea of transforming Nepal into a “vibrant bridge” between regional powers has generated debate, particularly among analysts who question this conceptual framing.

Engagements with international actors have been relatively low-key. The visit of U.S. Assistant Secretary Paul Kapur and reported interactions with Chinese officials indicate ongoing diplomatic activity, but the government has not yet fully articulated a distinct foreign policy identity. Prime Minister Shah’s decision not to hold individual meetings with foreign ambassadors—at least so far—marks a departure from past practices and may reflect either a deliberate shift or a lack of diplomatic prioritization. 

Foreign Minister Shisir Khanal met his Indian Counterpart S. Jaishankar at the Indian Ocean Conference, and both sides have indicated that preparations are underway for Prime Minister Shah’s visit to India.

The international community has responded overwhelmingly, with major countries and development partners showing strong interests in supporting the priority areas outlined by the new government.  While response vary among partners, India and several Western countries have shown strong interests in working with the new government, particularly given its youth-led leadership and internationally educated team. China’s response has been more measured in comparison, reflecting broader strategic consideration. 

Domestically, the government has also initiated discussions on constitutional reform. A panel led by political advisor Ashim Shah has been tasked with exploring possible amendments. While there is broad agreement among political parties on the need for constitutional change, progress has been slow due to limited engagement from opposition groups.

The reluctance of parties like the NC and CPN-UML to participate actively suggests that political polarization remains a significant obstacle. Despite its strong parliamentary majority, the government cannot unilaterally drive constitutional reform without broader consensus. This highlights an important reality: a strong mandate simplifies governance but does not eliminate the need for negotiation and inclusion.

One of the defining characteristics of the current administration is its generational shift. With most cabinet members under 40, this is the youngest government in Nepal’s recent history. The decision to reduce the number of ministries from 24 to fewer than 17 further reflects an effort to streamline governance and enhance efficiency. While these changes are promising, they also come with risks. Younger leaders may bring fresh perspectives, but they may also lack the experience needed to navigate complex institutional and political dynamics.

After one month, it is clear that Balen Shah’s government is active, ambitious, and reform-oriented. It has taken bold steps to signal a break from the past and to address long-standing issues of corruption and inefficiency. However, it is still too early to conclude that it has become truly efficient. Efficiency in governance is not measured solely by speed or decisiveness; it requires consistency, institutional strength, and adherence to due process. The government’s early actions have generated both optimism and concern—hope for change, but also questions about execution.

The coming months will be crucial. If the administration can translate its initial momentum into sustainable reforms, it could mark the beginning of a new era in Nepali politics. If not, it risks becoming another chapter in the country’s long history of unfulfilled promises. For now, the verdict remains open: Nepal’s strong government is moving toward efficiency, but it has not yet fully arrived.

Nepal received altogether 7,642 tourists from third countries in the past nine months through the eastern border in Kakarbhitta, Jhapa.

Chief of the Immigration Office in Kakarbhitta, Tulsi Bhattarai, said that tourists from 81 countries across the world visited Nepal in the first nine months of the current fiscal year. 

The number of Bhutanese nationals coming to Nepal stood at the top of the ranking during the period followed by the USA, Thailand, Australia and the UK. The Immigration Office stated that a total of 4,154 tourists entered Nepal during the period. 

Chief of Office Bhattarai said that 1,612 Americans arrived in Nepal, 525 from Thailand, 229 from Australia and 182 from the UK entered Nepal through the eastern border point in Kakarbhitta.

He added that most of the tourists visiting Nepal shared that they would visit Lumbini, Pokhara, Kathmandu, Chitwan, Gorkha and other major tourist destinations in Nepal.

The Immigration Office shared that 9,942 tourists from third countries left Nepal from the same border point during the same period. 

Likewise, more than 3,000 Nepalis, who were in foreign countries for study and other purposes, arrived home through the Kakarbhitta point from different countries during the review period.

The officials shared that the number of tourists arriving in Nepal through the Kakarbhitta point has decreased compared to the figure of last year.

India has said it is aware of reports regarding enforcement by Nepali authorities of a pre-existing provision requiring customs duty on goods purchased in India valued above NPR 100 carried by cross-border travelers.

“We understand this measure is intended to curb informal trade and smuggling,” said Randhir Jaiswal, spokesperson of India’s Ministry of External Affairs.

He also noted statements from senior Nepali officials indicating that individuals carrying household goods for personal use will not be obstructed.

US Assistant Secretary of State for South and Central Asian Affairs, Samir Paul Kapur, concluded a three-day visit to Nepal on April 22, marking the highest-level US visit since the new government took office. Ahead of Nepal’s March 5 election, Kapur had expressed confidence that the vote would be peaceful and said the US was prepared to work with the incoming government. Briefing the US House Foreign Affairs Committee in February, he stated: “With Nepal, we trust there will be a secure and peaceful electoral process, and we are prepared to work with whoever wins.”

In his testimony, Kapur placed Nepal within a broader US strategic outlook for South Asia, alongside developments in countries such as Bangladesh, where political transitions have recently drawn international attention. His subsequent visit to Dhaka in early March reflects continued US engagement across the region during periods of political transition.

A key underlying theme in his remarks was the strategic importance of Nepal’s geographic position between India and China. US lawmakers have increasingly emphasized that South Asia’s balance of power matters for global economic stability. Kapur explicitly noted that preventing dominance by any single power in the region remains a central US objective.

He warned that the emergence of a “hostile power dominating South Asia” could translate into broader coercive leverage over the global economy—underscoring how regional geopolitics is now directly tied to global economic security. Kapur also highlighted that smaller South Asian states—including Nepal, Bangladesh, Bhutan, Maldives, and Sri Lanka—are strategically significant but structurally vulnerable to external pressures, particularly through what he described as debt-driven influence mechanisms.

Against this backdrop, he outlined US priorities in the region: expanding trade and economic connectivity, strengthening defence and security cooperation, and supporting partners through diplomacy, investment, and institutional engagement.

The underlying message is clear: the US is increasingly framing South Asia not just as a development region, but as a strategic balance zone—where economic tools, connectivity, and institutional partnerships are deployed alongside traditional diplomacy.

This presents an opportunity for Nepal. The pattern of engagements matters, and this visit reflects a shift in how external actors—particularly the US—are approaching the country. Kapur’s visit appeared mission-driven rather than ceremonial, suggesting a targeted effort rather than symbolic diplomacy. His engagement with Rabi Lamichhane, chairperson of the Rastriya Swatantra Party, signals attention to Nepal’s evolving political landscape and the rise of non-traditional actors. It reflects an interest in governance narratives centered on anti-corruption, technocratic leadership, and service delivery.

Equally notable was the absence of meetings with top state leadership such as the president, prime minister, or army chief. This suggests a deliberate shift from conventional protocol—an exploratory approach that keeps distance from established power structures while focusing more on political economy than security.

The emphasis on engagements with foreign and finance ministries indicates that economic diplomacy is at the core of US priorities. This aligns with a broader approach that competes through capital, regulatory standards, and governance frameworks rather than solely through security partnerships. Key areas of focus include the investment climate, regulatory predictability, infrastructure, energy, and governance-linked economic systems.

Outreach to business leaders further signals that engagement is increasingly being built through markets, not just ministries. It reflects recognition of Nepal’s underutilized private sector and an interest in identifying credible local partners for international capital. Kapur also visited Patan Durbar Square and Boudhanath Stupa, highlighting Nepal’s Newari and Tibetan cultural heritage. He noted that US support for preserving such sites contributes to economic growth while safeguarding shared cultural values. His interaction with the Tibetan community in Kathmandu—and his call for attention to their concerns—signals continued US engagement on Tibet-related issues, a sensitive area given Nepal’s adherence to the One-China policy.

Unlike traditional diplomatic visits, this one appeared less ceremonial and more strategic—politically exploratory, economically focused, selective in protocol, and multi-channel in outreach. The visit can be interpreted as a calibration mission rather than a courtesy call. Its likely objectives include mapping Nepal’s evolving political landscape, re-anchoring US influence in the economic domain, diversifying engagement beyond state actors, and testing Nepal’s strategic flexibility amid intensifying regional competition.

At its core, the approach reflects economic statecraft as a substitute for overt political alignment—shaping the environment in which outcomes emerge rather than attempting to directly control them. The visit also unfolds against intensifying geopolitical competition in South Asia, where India has traditionally held significant influence. New Delhi appears to view increased US engagement with a mix of strategic alignment and cautious watchfulness.

On one hand, there is convergence with Washington on balancing China’s expanding regional role. On the other, India remains sensitive to any external presence that could dilute its influence in what it has long considered its immediate sphere. This reflects both opportunity and concern.

Indian analysts have also pointed to internal political developments in Nepal—particularly the consolidation of major communist parties—as a factor that could expand China’s leverage. This has prompted some within India’s strategic circles to call for closer coordination with the US, even as there is growing recognition that India’s traditional influence is evolving and requires a more deliberate, strategy-driven approach.

At the same time, China has signaled concern over the intensifying US presence. In the lead-up to the visit, Beijing’s representatives in Kathmandu cautioned against activities linked to Tibet and Taiwan, underscoring China’s priority that Nepal not become a platform for anti-China political or security agendas.

China continues to advance its economic footprint through initiatives such as the Belt and Road Initiative, framing development cooperation as the central pillar of its engagement. The broader picture is one of intensifying strategic signaling, with both Washington and Beijing testing the boundaries of influence.

For Kathmandu, the message is clear: the opportunity is significant. External actors are engaging despite political fluidity, not waiting for stability. Nepal is seen as strategically relevant even in transition. Future partnerships will depend less on ideology and more on governance quality, regulatory credibility, and economic openness.

The bottom line is that this was not a routine visit—it was a quiet strategic probe. The absence of top-level meetings is not a gap; it is the signal. The US appears to be looking beyond the current state structure—toward the next phase of Nepal’s political economy.

From April 19 to 22, US Assistant Secretary for South and Central Asian Affairs Paul Kapur visited Nepal. Although it was a routine visit, it carried significance for two main reasons. First, it was his first visit to Nepal after assuming office at the State Department last year. Second, the visit came on the heels of the Rastriya Swatantra Party’s stunning victory in Nepal’s landmark March 5 elections and the appointment of Balendra Shah as prime minister on March 27.

The visit provided an opportunity for Kapur to outline the new priorities of the Donald Trump administration and to understand the priorities of Nepal’s new government. For Nepal, it was a chance to communicate its priorities to the United States, a major development partner since the 1950s. Since Trump’s second inauguration, there has been no substantial high-level engagement between the two countries. It was only after nine months that Kapur was appointed to oversee the region. Meanwhile, Nepal was preoccupied with internal issues such as the GenZ protests and the March 5 vote. That is why Kapur’s Nepal visit got delayed.

Kapur’s meetings this week with political leaders, business representatives and members of the cultural community indicate both continuity and change in the Trump administration’s Nepal policy.

During his stay in Kathmandu, he met RSP Chairperson Rabi Lamichhane, Foreign Minister Shishir Khanal and Finance Minister Swarnim Wagle. He also held discussions with members of the business community and representatives of the Tibetan community in Nepal.

 Unlike previous assistant secretaries, who typically met opposition leaders, former prime ministers, civil society representatives, and media figures, Kapur’s engagements in Kathmandu were relatively limited.

Now, turning to the key issues discussed with Nepali officials: as the Trump administration has dismantled USAID—which previously supported Nepal’s health, education, agriculture, and energy sectors—Kapur emphasized deepening and expanding commercial ties during his meetings with government ministers and business leaders. This signals that the US is shifting away from aid (except in a few areas) and focusing more on investment.

 The dismantlement of USAID created a stress on Nepal’s health, education and agriculture sector. The Trump administration has been prioritizing trade over aid and investment assistance which puts Washington in a stronger position to counter China.

In his meeting with Finance Minister Wagle, Kapur stressed improving the business climate to attract US companies. He noted that more American private firms would invest in Nepal if a more investment-friendly environment were created. Even during the Joe Biden administration, both sides had discussed increasing American investment in Nepal. The Trump administration has also continued projects under the Millennium Challenge Corporation, which the US views not as aid but as investment.

Speaking before the House Committee in February, Kapur said that carefully targeted investment can provide South Asian countries with high-quality, transparent and non-coercive support for critical infrastructure such as ports, telecommunications networks, and energy systems—helping them avoid the risks of “debt-trap diplomacy,” a veiled reference to China.

He made similar remarks during a recent meeting with Bangladesh’s finance minister in Washington, emphasizing expanded trade and investment, improved market access, energy cooperation and opportunities in infrastructure development.

Collaboration in digital infrastructure is another major US priority in Nepal. In discussions with business representatives, Kapur highlighted opportunities in Nepal’s ICT sector, including strengthening digital infrastructure, promoting artificial intelligence adoption, enhancing cybersecurity and sharing US technological expertise. Interestingly, the Chinese ambassador to Nepal recently made similar proposals in talks with Finance Minister Wagle.

Immigration policy has also become a major priority under Trump’s second term. Kapur raised concerns about illegal immigration and human trafficking in his meeting with Foreign Minister Khanal. Over the past year, the US  has deported hundreds of Nepali nationals residing illegally in the country, and this issue has been discussed in prior engagements in Washington.

Enhanced defense cooperation is another priority for the US, representing continuity with past policy but with greater emphasis under the Trump administration. Although Kapur did not meet security officials during this visit, earlier engagements suggest this focus. For instance, Admiral Samuel J. Paparo, commander of the US Indo-Pacific Command (INDOPACOM), highlighted expanded defense cooperation during his visit to Nepal.

In previous statements, Kapur has emphasized that countries like Nepal, Bangladesh, the Maldives, Sri Lanka and Bhutan hold strategic importance due to their geographic positions but are also vulnerable to external pressure. Defense cooperation with the US, he argued, can help these nations safeguard their borders and waterways. The US continues to promote the State Partnership Program (SPP), although Nepal decided in 2022 not to join it.

Through INDOPACOM, the US has supported Nepal in strengthening disaster response capabilities via joint exercises, technical assistance, and non-combat equipment such as helicopters, vehicles and communication systems. Additional training and logistical support aim to enhance Nepal’s capacity for peacekeeping and humanitarian operations, aligning with broader goals of self-reliance and regional resilience.

Countering Chinese influence in Nepal remains a longstanding US priority, and the Trump administration appears to be placing renewed emphasis on it, even if it was not explicitly stated during this visit. Notably, issues such as democracy, climate change cooperation, human rights, media freedom, and minority rights—often highlighted in previous US engagements—were not prominently raised during this visit.

Nepal has welcomed the recent announcement of a two-week ceasefire agreement reached between the United States of America and the Islamic Republic of Iran. 

"Nepal views this development as a positive step towards the promotion of peace and stability in the region while reiterating its consistent position in favour of peaceful settlement of disputes," reads a statement released by the Ministry of Foreign Affairs on Wednesday. 

It marks a constructive step towards de-escalation of tensions in West Asia, providing an opportunity for dialogue, diplomacy and peaceful resolution of differences.

The Government has also expressed its concern over the humanitarian consequences of the conflict and underscores the importance of ensuring the safety and well-being of civilians.

"Nepal remains supportive of all efforts by the international community aimed at promoting lasting peace and stability in the region and beyond," adds the statement.

The Indian Embassy in Kathmandu in collaboration with the Ministry of Federal Affairs and General Administration of the Government of Nepal on Thursday signed Memorandums of Understanding (MoUs) to implement seven High-Impact Community Development Projects (HICDPs) across Nepal.

The projects covering education, health and agriculture will be funded by the government of India at a total cost of Rs 473 million. 

Since 2003, the government of India has undertaken 598 HICDPs in Nepal, including the seven projects for which MoUs were signed today, reads a statement issued by the Indian Embassy in Kathmandu. 

Out of these, 506 projects have been completed in the areas of health, education, agriculture, drinking water, connectivity, sanitation and creation of public utilities. 

These projects are spread across all seven provinces of Nepal. 

The remaining projects are at various stages of implementation, according to the statement. 

As close neighbours, India and Nepal are engaged in wide-ranging and multi-sectoral cooperation. 

The implementation of HICDPs reflects the continued support of the Government of India in strengthening the efforts of the Government of Nepal in promoting growth and development, apart from augmenting infrastructure in priority sectors.

Naturally, Nepal is beautiful, geographically Nepal is landlocked and politically Nepal is always unstable. But after the March 5 election, the term unstable will be stable—that’s our hope—with a new political party set to form the government.  Nepal has just seen a political earthquake. In the recent election, the Rastriya Swatantra Party (RSP), led by Balendra (Balen) Shah, has secured a historic majority in the federal parliament, with around 182 seats out of 275. The so‑called big parties of yesterday have been pushed far behind. Many of their senior leaders have lost. Only former Prime Minister Pushpa Kamal Dahal has managed to return to parliament from Rukum East, while other familiar famous faces have disappeared from the front line. This result is not a small change; it is a clear message from the people that they were tired of the old way of politics and new one to be corrected in present and future with the hope not to be repeated from this wave too.

Nepal has long struggled with hung parliaments, unstable governance, and never-ending positional negotiations. The people’s lives remained unchanged despite the government’s repeated changes in leadership. Rather than being influenced by the general welfare, policy decisions were frequently influenced by personal interests, political agreements, and corruption. Like in the past, basic government services remained cumbersome, slow, and rude. People believed that even basic tasks required bribes or political ties. Due to their inability to obtain good services, health care, or education at home, young people from villages and small towns continued to migrate to cities and other nations. A ‘tsunami of votes’ was made possible by this lingering discontent.

Why did this tsunami of votes come for RSP and Balen Shah? There are several reasons. First, young people, especially the GenZ generation, had already shown their anger through protests and social media campaigns against corruption, nepotism, and the lifestyle of the political elite. They were tired of seeing leaders’ children enjoying luxury while ordinary youth stood in queues for passports and labor permits. Second, Balen presented itself as a clean, new force with a strong anti‑corruption message and a modern style of communication. Balen Shah’s own image as an engineer, rapper, and independent thinker who had already shaken the old parties in Kathmandu’s mayoral politics gave people hope that a different kind of leadership is possible.

Third, voters punished the old parties because they failed to provide stable and honest governance after the federal republic was established. Leaders kept making coalitions only to save their chairs, not to serve the people. They talked about socialism and equality, but the gap between their words and their actions became too big. In this election, people decided to clean the field. This is not just a victory for one party; it is a warning that any party can be thrown out if it betrays public trust.

Now, with a clear majority, the biggest hope is political stability. For the first time in many years, one party has enough seats to form a government without being hostage to small coalition partners. This creates an opportunity and a big responsibility. The question is: what should this new government do first, so that people feel their vote was not wasted?

The first duty of the new government is to restore ‘trust’. Trust will not come from speeches; it will come from concrete actions that people can see and feel in daily life. The government’s first decisions should focus on cleaning the system and improving basic services. A strong first move could be to announce a national “Good Governance and Service Reform Plan” with clear, time‑bound targets. For example, the government can declare that key services such as citizenship, social security, passports, driving licenses, land registration and business registration must be delivered within a fixed number of days, through a simple process, with transparent fees. There should not be rules office and employee wise.

To make this real, there should be a public “Revised Service Charter” in every office, and a system for citizens to complain easily if offices delay work or demands. Complaints should go to an independent mechanism that can take action quickly on responsible officials. If people see that the government seriously protects them against harassment in offices, their hope will grow.

The second urgent duty is to fight against growing corruption at all levels in political leadership, civil service, and the private sector. Corruption has become like cancer in Nepal. To control it, the new government can follow some guiding steps:

• Establish the mechanism of investigating assets of public holding 

• Give real independence, resources, and technology to anti‑corruption bodies so they can investigate big cases without political pressure 

• Protect whistle‑blowers who expose corruption in government offices, public enterprises, or private companies doing public work 

• Introduce e‑procurement and open data for all major contracts, so that the public and media can see who is getting which contract, at what price, and with what results

• Revise government office and employee numbers and provide plenty of tasks to the employee

• Enforce strict punishment for proven corruption, even if the person belongs to the ruling party

Importantly, the new government must apply the same standard to its own members. If RSP protects corrupt people inside its own ranks, the moral authority of this “change” will collapse. People voted for RSP to break the old culture, not to repeat it with new faces.

The third big responsibility is to make the state work for the whole country, not just for the center and own area. People in rural hills, Madhes plains, and remote areas have suffered from poor infrastructure of schools, poor health posts, bad roads, and lack of safe drinking water. Many of them feel that the state only remembers them during elections. The new government must show that it respects every citizen equally. Early budgets should prioritise basic services in the poorest and most neglected areas. Local governments should receive predictable funding and technical support, with clear rules and monitoring, so that funds are not misused on the way.

The government must also speak clearly about inclusion. Nepal is home to diverse communities—Dalit, indigenous, Madhesi, Muslim, Tharu, and others—who still face discrimination and barriers. For them, good governance means being able to enter an office without humiliation, getting justice from police and courts, and seeing people like themselves represented in state institutions. The new leadership should enforce laws against caste and gender discrimination, improve representation in public service, and design targeted programmes for those at the bottom.

Another major challenge is to give young people a reason to stay here. Before this election, unemployment, low wages, and frustration with the system pushed thousands of youths to go abroad every day. If nothing changes, the country will lose its energy and future. The new government must make youth employment a top priority. This can include transparent and fair public service exams, support for small and medium enterprises, skills training linked with technology and green jobs, and encouragement for innovation and start‑ups. At the same time, the government must clean up existing recruitment processes where cheating and favoritism have damaged trust.

To move toward a “Good Governance Country”, the change must be both structural and cultural. Structurally, laws, rules, and institutions have to be improved. Culturally, habits of power, ego, and misuse must be challenged. Political leaders should set an example by living simply, avoiding unnecessary luxury at public cost, and being reachable to citizens. Parliamentary committees should actually question ministers and review policies, not just act as rubber stamps. The media and civil society should be free to criticize without fear.

The first-ever decisions of this new government will be remembered. If they touch the everyday pain of citizens’ corruption, delay, disrespect, unemployment, reducing cost for representatives and government officials, poor service people will feel that a new era has truly begun. If those first decisions are only about positions, protocol, and party interests, people will quickly feel cheated again. The “tsunami of votes” that lifted RSP and Balen to power can, in future, sweep it away too.

Nepal now stands at a crossroads. The old parties have been taught a hard lesson by the people. The party has been given a historic chance. Stability will come not just from numbers in parliament, but from honesty in action. If this government can be brave, humble, and consistent, Nepal can slowly move from a culture of corruption and chaos to a culture of service and dignity. The people have done their part. Now it is the government’s turn to show this time, change is real. And we will feel we are rich in every aspect, where we were always poor. We are ready to wait for some time, understanding that deep reform cannot happen in one single day. But we are also watching carefully. The early days and the first decisions will be remembered for many years, either as the moment when Nepal finally started to respect its citizens or as one more missed opportunity.

In mid-Feb 2025, Pokhara, the tourism capital of Nepal, announced a ‘Pokhara Visit Year 2025’ with the goal of welcoming 2m tourists to the country in 2025. At that time, Pokhara had announced the target to draw in 1.5m tourists to the bustling metropolis alone. Recent estimates suggest that around 40 percent of tourists visiting Nepal also visit Pokhara. For 2025, the target was to increase this figure to 60 percent. The tourism capital is developing different packages to achieve this goal by attracting tourists, Indian tourists in particular.

This Visit Year program, initiated by the provincial government with support from the Nepal Tourism Board, aims to promote Pokhara’s unique natural beauty, thrilling adventure activities, and rich cultural experiences, and to further establish the image of Pokhara at the international level.

At present, domestic tourism in Nepal is gaining momentum. A culture of traveling during holidays is gradually developing, which is a positive sign for tourism. Social media platforms such as Facebook and X are playing a major role in attracting tourists. Despite various challenges facing Nepal’s tourism sector, there has been a noticeable revival of activity. The arrival of tourists to Pokhara and other major cities during Dashain and Tihar has created renewed enthusiasm in this sector.

According to 2024 statistics, France received the highest number of tourists (102m), followed by Spain (93.8m), the United States (72.4m), China (64.9m), and Turkey (60.6m). In the same year, India received 18.8m tourists, while Nepal welcomed 1.147m tourists.

France’s Eiffel Tower and Dune of Pilat paragliding attract tourists, while the desert nation Dubai draws visitors from around the world through manmade infrastructures such as Burj Khalifa, Dubai Mall, Jumeirah Burj Al Arab, and Dubai Miracle Garden. Compared to these countries, Nepal enjoys an excellent climate and extraordinary natural sites. If Nepal can invest even modestly in infrastructure and promotion, it can get attractive dividends from the tourism sector. Nepal has numerous rivers comparable to France’s Gorges du Verdon. Nepal shares many comparable geographical advantages with France and several other countries that have a thriving tourism industry.

Most tourists visiting Nepal come for religious purposes, visiting sites such as Pashupatinath, Janaki Mandir, Muktinath, and Lumbini. Other tourists make it to destinations such as the Sagarmatha region, Chitwan and Bardiya National Parks as well as Pokhara.

In recent years, China has achieved remarkable progress in information technology and infrastructure, surprising even powerful nations like the United States. From the Great Wall to the Forbidden City and cities like Shanghai’s Bund, China has attracted millions of tourists. Just as China developed tourist destinations like the Li River and Yellow Mountain, Nepal too has immense potential to attract tourists by promoting its diverse locations.

The average stay of tourists visiting Nepal is 12 days. By improving infrastructure, increasing tourist numbers, and extending their length of stay, millions of unemployed Nepalis can find employment or self-employment, playing a vital role in economic development. Tourism does not benefit only tourism businesses; it impacts the entire economy, including agriculture, industry, and banking and financial institutions, positively. Increased tourist arrivals and longer stays raise demand for human resources in tourism, generating direct employment, while increased demand for food and vegetables boosts agriculture and generates indirect employment and positive growth.

Nepal’s hotels are capable of providing international-standard services, but many food items—meat, vegetables, and other ingredients—still need to be imported. If international tourists could be served Nepal-produced meat, fish, and local dishes, and developed a taste for Nepali cuisine, food tourism could significantly support the tourism industry, increase demand for domestic products, create jobs, and positively impact the national economy.

France leads the world in food tourism; people travel there from all over the globe to enjoy local cuisine and wine. Countries such as Ireland, the Philippines, and Canada place special emphasis on attracting tourists through local food, while major cities like London, Paris, New York, Berlin, Madrid, Kuala Lumpur, Barcelona, Lisbon, and Rome have achieved strong tourism growth through culinary tourism.

According to recent studies, the world’s most visited tourist attractions include the Eiffel Tower (France), the Great Wall of China, the Taj Mahal (India), the Colosseum (Italy), Machu Picchu (Peru), the Sydney Opera House (Australia), Santorini (Greece), Petra (Jordan), and Niagara Falls (USA).

In 2024, Japan achieved a 47 percent increase in tourist arrivals, driven by currency devaluation that made travel packages cheaper, expansion of air routes to improve access from different countries, and simplified visa and administrative procedures. Saudi Arabia achieved a very impressive 73 percent growth by prioritizing tourism and diversifying away from an oil-based economy through various initiatives. In earlier years, Paraguay and Tajikistan also significantly increased tourist arrivals by prioritizing tourism.

Paraguay, whose GDP growth rate was negative until 2011–2012, has now achieved more than five percent economic growth, with tourism playing a key role. Favorable weather, clean roads, strong security arrangements, comfortable transportation, and cultural programs during travel have helped attract tourists.

Saudi Arabia attracts millions of religious tourists during Ramadan, just as India draws millions to its religious sites. Likewise, South Korea and Sri Lanka attract millions of religious tourists annually, making a major contribution to their economies.

Nepal, with its large Hindu population and as the birthplace of Gautaam Buddha, holds immense potential for religious tourism. Just as Muslims aspire to visit Mecca at least once in their lifetime, religious tourism programs can inspire Hindus to visit Pashupatinath, Muktinath, Vyas and other sacred shrines, while attracting Buddhists from around the world to Lumbini, the birthplace of the Buddha. By doing so, tourism could promote, and significantly help the nation’s economic growth. For this, it is essential that all stakeholders focus on the conservation and promotion of Nepal’s heritage to attract tourists.

Every Nepali should develop a positive mindset toward tourism, and Pokhara must play a key role in this endeavor. Tourism is not just a sector; it is the hope of the nation and the people. Therefore, let us promote this sector with the theme: Tourism that leads, planting future seeds.