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This year, unlike in the past, the Government of Nepal’s prudence was evident when the Department of Hydrology and Meteorology (DHM) issued heavy rainfall warnings. The National Disaster Risk Reduction and Management Authority (NDRRMA) issued a four-day travel advisory for October 3–6, which prohibited long-distance vehicle operations and limited travel in susceptible areas. Citizens were urged to refrain from avoidable travel with early warnings of landslides and swelling rivers in the provinces of Koshi, Bagmati, Gandaki and Lumbini. Even public holidays were issued for two days, prompting the residents to stay safely at home.

With swift evacuations and well-coordinated communication, these preventative measures helped prevent significant losses during the monsoon. A slight improvement in Nepal’s disaster management was visible this year, evident with better early warning systems, institutional coordination and a maturing public response mechanism. Yet, early preparedness and rapid post-disaster recovery can no longer remain the only answer: infrastructures built for a gentler historical climate remain worryingly defenseless to the “new normal” of intensifying future extremes.

The flood that rewrote the map

The September 2024 floods were a sobering lesson. A rare cyclonic circulation and mid-tropospheric westerly trough triggered 60 hours of continuous rainfall across central and eastern Nepal. According to the Department of Hydrology and Meteorology, over 183 weather stations recorded more than 50 mm, while 25 broke 24-hour records, some exceeding 400 mm. The streams of the Bagmati, Koshi, and Narayani basins surpassed their historic highs, causing landslides, debris flows, and flash floods that affected 2.6m people, claimed 249 lives, and caused economic losses exceeding Rs 46bn, over one percent of GDP.

Among the worst hit was the Banepa–Bardibas (BP) Highway, a lifeline connecting Kathmandu with the eastern Tarai. Field assessments along the Roshi Khola corridor, from Bhakunde Besi to the Sunkoshi confluence, revealed widespread destruction, with dozens of landslides and slope failures damaging approximately 80 km of the highway, and 26 km were severely impacted. Collapsed retaining walls and eroded embankments were anything but sparse. In one particularly devastated stretch of the Kavrepalanchok district, the river eroded an 8-km segment of the roadway, rendering it impassable.

Our study found that the Roshi basin received an average of 267 mm of rainfall in 24 hours, equivalent to a once-in-773-year event, based on 60 years of rainfall records. The unprecedented precipitation turned the river into a force that the infrastructure was never built to face, with a discharge significantly higher than the design capacity.

A year later, the same story

The susceptibility was exposed again this year. Temporary repairs failed, embankments slumped and diversions were washed out. The BP Highway’s recurring damage reveals a systemic flaw: Nepal’s highways, particularly along river corridors, are no longer safe, acutely exposed to the whims of climate extremities.

Lessons from collapse

First, our engineering standards must evolve. The flood magnitudes adopted by the NRS 2070 assume a 50-year return period for first-class roads and a 100-year for bridges. While a 10 percent increase in design discharge is mandated to account for climate change, DOR’s Guidelines on Hydrologic and Hydraulic Analysis and River Training Works for Bridge Design no longer suffices in the face of rapidly shortening return periods.

There should be no delay in increasing the design return period to 100 and 200 years for major roads and bridges, respectively. Moving beyond reliance on historical data-based frequency analysis, all major road retrofitting, bridge reconstruction and new construction projects must be checked against the contemporary climate projections for the design period.

Second, planning must be risk-informed and data-driven. Integrating climate-informed vulnerability mapping to identify at-risk zones before the construction or repair is imperative. This helps to avoid the high-risk zones from the get-go and minimizes the likelihood of recurring future damage.

In flood-prone river corridors, vulnerability mapping determines where infrastructure elevation is necessary versus where an early warning system might suffice (reducing consequence through evacuation and traffic management). This systematic approach should be an indispensable first step before deploying costly engineering solutions.

And most importantly, resilience cannot rely on concrete alone. Structural adaptations like increased freeboard of bridges and strategic elevation of roadways should be complemented with nature-based and hybrid solutions, vegetative slope stabilization and bioengineering. In Nepal, steep slopes could benefit particularly from hybrid approaches such as vegetative bioengineering combined with check dams. Also, land-use planning, like establishing conservation buffer zones adjacent to floodplains to regulate development, prevents encroachments that heighten flood levels or exacerbate erosion.

Reaction to resilience

To break free from the disaster and repair loop, Nepal must embed “climate logic” into its development DNA. “Fund Resilience, Not Disasters,” the theme from the recent International Day for Disaster Risk Reduction, captures this urgency: invest now, or pay exponentially later.

Short-term restoration of strategically important corridors like the BP Highway must go concurrently with long-term resilience planning.  Roads should be realigned away from unstable river bends where possible, with major corridors upgraded for at least 100-year floods, and slope protection integrated with river training works such as spurs and check structures.

Design standards must evolve beyond the historical averages to incorporate the plausible future scenarios. Climate risk screening and cost-benefit justification for resilience measures should be mandatory for detailed project reports. Increasing hydrometeorological networks and interleaving vulnerability mapping into road asset management will help prioritize investment where it matters most.

While these reforms seem costly, prevention is the cheapest insurance. Global evidence shows that every dollar spent on resilience saves at least four are saved in recovery. For Nepal, with annual road repair costs already exceeding Rs 3 billion, the choice is obvious.

The road ahead

While decisive early action can be effective in minimizing risks, it cannot substitute for durable infrastructure. Preparedness can save lives, but only resilience saves livelihoods.

The BP Highway disaster is more than just a damaged road; it serves as a warning. The next storm is imminent. Safeguarding every trip, whether to school, the market, or home, requires investing in resilience now, not in repairs later.

(Rajan KC is a civil/geotechnical engineer working on disaster mitigation and resilient infrastructure.)

As global leaders gather at COP30 in Brazil to negotiate finance, adaptation, and loss and damage, Nepal’s 2025 monsoon season offers a stark reminder of why climate-vulnerable countries need stronger recognition and support. From slow-onset droughts in the plains to catastrophic glacial floods and colossal landslides in the mountains, Nepal’s experience illustrates how climate variability is already inflicting deep human, economic, and ecological losses—despite the country’s negligible contribution to global emissions. 

According to the German Watch’s Climate Risk Index 2025, Nepal averages nearly 250 deaths annually from climate-related disasters, with roughly 75,840 people directly affected each year. The economic cost of such events is also substantial, amounting to an estimated $221.3m—or 0.258 percent of the national GDP—underscoring the persistent human and financial toll of climate-induced hazards

Nepal’s 2025 monsoon opened with extended dry conditions across Southern plains; mainly Madhes Province, where rainfall from June to mid-July fell to less than one-third of normal levels during the critical paddy transplantation period. With worsening soil moisture and visible crop stress, the provincial government declared drought on July 24. Yet only weeks later, it brought severe downpours mainly across Madhes, inundating ripening paddy fields and low-lying settlements and causing damage worth billions of rupees. The abrupt shift from drought to heavy flood within the same season is emblematic of climate-driven rapid extremes now harming smallholder farmers who lack buffers to absorb repeated shocks.

The situation intensified even after the official monsoon withdrawal. Multiple post-monsoon rain systems—amplified by two unexpected but powerful cyclones on Oct 4-5 and again on Oct 30-31—brought extreme rainfall during Nepal’s peak harvest season, destroying crops of billions rupees worth, stored grain, and essential infrastructure. These late-season events have heightened national anxiety about Nepal’s changing monsoon behaviour and the possibility of more frequent cyclone-linked hazards in the future.

High-altitude regions faced even more severe climate-induced damage. Amid lingering fears from last year’s catastrophic Thame incident in the Khumbu region, Nepal faced another shock on 8 July when a transboundary glacial lake outburst flood (GLOF), originating in China’s Tibetan Autonomous Region, surged into Rasuwa District through Bhote Koshi river. It killed 10 people, left 19 missing, destroyed the Rasuwagadhi friendship bridge, damaged hydropower facilities, flattened the dry port, swept away cargo trucks, and disrupted cross-border trade. Losses were estimated at Rs 2.5bn, and insurance claims reached nearly Rs 1bn. For Nepal, this event underscored the country’s exposure to hazards that originate beyond its borders—a key issue Nepal continues to raise at COP30 within the global Loss and Damage framework.

Beyond infrastructure losses, climate-induced non-economic damages—psychosocial stress, displacement, health impacts, lost educational days, and erosion of cultural and natural heritage—remain largely unaddressed in national relief systems. These burdens fall disproportionately on women, elderly residents, low-income families, and indigenous communities, widening existing inequalities and undermining long-term resilience.

Despite these mounting challenges, Nepal is also making notable progress in reducing human casualties. The 2025 monsoon spanned 135 days—longer than average, with onset on May 29 and withdrawal on Oct 10—bringing near-normal rainfall yet resulting in significantly fewer deaths and injuries than in previous years. Disaster incidents fell by 32 percent, deaths by 70 percent, and affected households nearly halved. These gains reflect improved forecasting, stronger institutional coordination led by NDRRMA, and community-level preparedness also supported by the development partners at local level. 

Madhes Province demonstrated how accessible warning systems can directly reduce loss and damage. SMS alerts, radio updates, and volunteer networks enabled households to protect livestock, food stocks, and essential assets. While economic losses were considerable, no fatalities were recorded—underscoring the life-saving value of localized, people-centered early warning systems. Similarly, in the downstream areas of Karnali, flood early warning mechanisms proved crucial in minimizing both human and property losses. Development partners, under Climate Resilience Measures for Community (CRMC) projects, working with national authorities and local communities, strengthened both the hardware—such as flood and rainfall sensors—and the software components, including community awareness and emergency preparedness. Together, these interventions showed that timely information and local readiness remain Nepal’s strongest defense against escalating climate risks

Across municipalities, bamboo-based bio-dykes, riverbank reinforcement, sandbagging, and pre-positioned emergency supplies helped prevent larger-scale devastation. These low-cost, community-driven measures highlight the importance of social capital and local knowledge in resilience-building.

However, substantial vulnerabilities persist. Ilam recorded the highest fatalities (39). Rasuwa suffered catastrophic economic losses. Trekking corridors and high-altitude settlements still lack reliable communication networks, leaving residents and tourists without timely warnings. And the increasing frequency of post-monsoon cyclone-driven rain systems threatens the stability of Nepal’s agricultural calendar.

Why COP30 must acknowledge Nepal’s climate reality

Despite Nepal’s minimal emission yet timely National Determined Contribution (NDC) submission along with Biennial Transparency Report (BTR) stating its full commitment to carbon neutrality by 2045, the country continues to face severe climate-induced loss and damage. The new Loss & Damage Fund at COP30 is promising, but predictable, accessible finance is urgently needed to protect communities bearing the brunt of crises they did not create.

Key questions for COP30: Who is responsible for escalating losses? How can vulnerable nations access reliable funding for preparedness and recovery? How can non-economic losses—culture, health, education—be addressed?

Nepal’s experiences with glacial lake outburst floods, drought–flood cycles, and cyclone-linked extremes show that adaptation alone is insufficient. Policy priorities include community-based monitoring, risk-informed land-use planning with phased relocation, nature-based solutions, and integrating non-economic losses into planning.

The 2025 monsoon is a stark reminder: those least responsible for climate change are suffering the most. Ensuring Nepal’s concerns are acted upon is essential for a fair, resilient, and climate-just future.

Hundreds of GenZ youths filled the busiest streets of Nepal’s capital city—Maitighar and New Baneshwor on Sept 8. It was the burst of frustration with the government’s malpractice—corruption, lack of accountability and transparency, ban on social media resulting in encroachment of the freedom of speech and the rising “nepo-baby” trend on social media that showcased contrasting images of the lavish lifestyles of political leaders’ children comparing to the daily struggles of ordinary Nepalis who shed their skin and bones in foreign lands just to sustain their families. 

What began as a peaceful protest quickly turned violent after the police forces opened fire claiming 76 innocent lives. The aftermath of the massacre left the nation in shock. 

The following day, government and private properties were destroyed, set ablaze and ultimately forced the then Prime Minister KP Oli to step down. For a country already mired from political instability, it felt like watching a tower of Jenga collapse. 

Just a year before Nepal’s September revolution, a similar GenZ youths uprising, called the July Revolution took place in Bangladesh. Thousands of students and youth activists took to the streets, demanding an end to decades of “political corruption” and “authoritarian regime”. The movement grew rapidly throughout the country after violent clashes between protesters and security forces, leading to a nationwide wave of demonstrations that eventually forced Prime Minister Sheikh Hasina to flee the country, marking a major turning point in Bangladesh’s political history. 

As a matter of fact, these two movements, led primarily by GenZ youths, marked a historic turning point for both nations shaping their modern political landscapes. Nepal saw the rise of its first woman Prime Minister, while Bangladesh’s long-serving female leader was forced into exile. The July Revolution in Bangladesh is now more than a year-old story, while Nepal’s September Revolution is still only two- or three-months in. Bangladesh is still struggling to rebuild its governance and restore public trust, and Nepal now stands at a similar crossroads. 

So, what kind of future lies for Nepal?

Constitutional crisis in Bangladesh 

In Bangladesh, following the resignation of Sheikh Hasina, Chief of Army Staff General Waker- uz-Zaman and President Mohammed Shahabuddin announced the formation of an interim government to stabilize the political situation. 

Invoking the emergency provision under Article 72(1) of the Constitution of Bangladesh, Nobel Laureate in Economics, Professor Muhammad Yunus, sworn in as the chief advisor to the Interim Government. However, the formation of the Interim Government led to a constitutional crisis. However, this triggered a constitutional crisis. 

Many critics argued that the appointment of a non-elected prime minister violated Article 56(1), which states that the prime minister must be a Member of Parliament. Several writs were filed, but the Supreme Court of Bangladesh quashed the writs, citing an Interim Government could be formed in accordance with Article 106 of the Constitution.  

Despite this, opposition groups have continued to resist the government adding on to the nation’s political instability. While Professor Yunus has promised national elections by July 2026, the fragile political environment and widespread distrust make that path challenging. 

Along with the political instability, Bangladesh has been facing challenges with a deteriorating law and order situation with increasing mob violence, violence against women and girls, and even religion-based clashes. Religious minorities, including Hindus and Ahmadiyyas, remain vulnerable as opportunistic groups exploit the power vacuum to spread hatred and violence. The new government’s struggle to control sectarianism shows how revolutions can awaken deep-rooted tensions that are hard to contain.

Politico-constitutional crisis in Nepal

In Nepal, following the resignation of KP Oli, led to a similar sequence of events like in Bangladesh. With the formation of a power vacuum, Army Chief Ashok Raj Sigdel and President Ram Chandra Paudel stepped in. 

After talks with the leading GenZ protest groups, former Chief Justice Sushila Karki was appointed as Nepal’s first woman Prime Minister under Article 61, which confers power on the President to protect the constitution. However, her appointment immediately became controversial as a section of lawyers and learned class argued that “none of the constitutional provision explicitly recognizes” Karki’s elevation to PM office.   

As of Sept 29, sixteen writs have been registered at the Supreme Court’s constitutional bench challenging the legality of her government.

State facilities burned and vandalized 

Adding to the crisis, Nepal’s law and order situation has deteriorated. Key government buildings, including the Supreme Court, Revenue offices in Kathmandu, Biratnagar and others, Morang District Court, Biratnagar High Court, Rajbiraj High Court, Saptari District Court, Kathmandu District Court and other courts, the Prime Minister’s Office, and the Federal Parliament were burned down during the protests. Resultantly, the offices so damaged are yet to stand functional in full-fledged mode.  

The Supreme Court continued operating its benches from temporary tents.

Drop in security personnel morale 

The morale of security forces has also plummeted. Nearly 1,000 personnel from the Nepal Police and Armed Police Force have resigned following the protests. With the interim government planning elections on 5 March 2026 the weakened security apparatus poses a major threat. 

The criminal gangs, political opportunists, and even external actors could exploit the instability. For ordinary citizens, this means growing insecurity, political uncertainty, and potential lawlessness on the streets. 

Economic dimension 

In the aspect of economy, both Nepal and Bangladesh are facing economic challenges following their revolutions. In Bangladesh many industries have been shut down leading to massive job losses, with many industries still not in operation, banks have been reluctant to issue letters of credit, dealing a severe blow to international trade and business confidence. 

On a more positive note, the interim government has introduced several economic reforms aimed at recovering laundered money and attracting fresh investments. 

Nepal can take inspiration from these efforts and adopt similar strategies to stabilize its own struggling economy. Nepal, too, is suffering economically in the aftermath of the September Revolution. The repercussions have been evident in the sharp decline of the tourism industry, which is one of the country’s main sources of revenue. 

Furthermore, Nepal Rastra Bank Governor, has acknowledged that investor confidence has significantly weakened since the GenZ movement, creating additional pressure on the already fragile economic environment. The World Bank has also lowered Nepal’s economic growth forecast to 2.1 percent for 2025/26 from 5.2 percent which is an alarming rate.

If political instability continues Nepal could face severe consequences like a slowdown in foreign investment, rising unemployment, and many more.

Way forward

Given the political instability and the challenges, the future remains uncertain, but it will be interesting to see how it unfolds, hopefully in an optimistic light for both Nepal and Bangladesh. 

History offers examples of nations like Germany and Japan, which managed to rebuild themselves into major economic powers after experiencing total devastation and political overhauls. With perseverance, accountability, and reform, there is hope that both countries can follow a similar path toward recovery and progress.

Nepal should reconsider its long-standing practice of appointing ministers from sitting MPs. Such changes are not just desirable—they are inevitable—given the mounting evidence of political instability if the country is to preserve the integrity of its parliamentary system and respond to growing public discontent. The Constitution of Nepal also allows for the selection of ministers from among MPs, and requires those appointed from outside parliament to secure membership within six months.

Corruption, patronage politics and weak legislative scrutiny have also increased as the country grapples with an alarming increase in election spending. Once MPs become ministers, they become entangled in the executive branch, reducing their ability and willingness to hold the government accountable. Moreover, since political positions are viewed as investments rather than responsibilities, the lure of ministerial appointments encourages excessive spending on parliamentary election campaigns.

In light of these anomalies, it is time to rethink this constitutional arrangement. Barring members of the House of Representatives from assuming ministerial positions would create a clear separation of powers, reduce political conflicts of interest and discourage the monetization of elections. Appointing ministers from outside parliament based on expertise and merit is the need of the hour. Doing so can help strengthen governance and restore citizens’ trust in Nepal’s democratic institutions.

A vicious cycle

Nepal’s elections are so expensive that only those with the support of wealthy or powerful donors can compete effectively. According to reports, despite our low GDP and per capita income, Nepal’s elections are estimated to be 147 times more expensive than those in neighboring India. Candidates for the 2022 general election have been reported to have taken on large amounts of personal debt or relied on opaque funding sources.

This financial burden does not end with victory. Elected members of the House of Representatives, who are deeply in debt from campaigns funded by private donations, often view ministerial appointments as a way to make up for the shortfall. Ministerial positions come with significant perks—salaries, allowances, and influence over budgets and contracts—that can be used for personal gains. When donors, often businesses or contractors, expect policy favors or government tenders, the stage is set for institutionalized corruption.

Corruption would be reduced if members of the House of Representatives were barred from becoming ministers. The parliamentary role alone reduces the opportunities for recovering the financial investments made in elections. Instead, candidates can focus on policy and public service, potentially reducing overall election costs through greater transparency and public financing reforms advocated by experts.

Erosion of accountability

Corruption in Nepal is not just an aberration but a systemic scourge that permeates every level of government. Transparency International’s 2024 Corruption Perceptions Index gave Nepal a dismal score of 34 out of 100, ranking it 100th out of 180 countries globally.

Political scandals abound. Senior politicians have been implicated in scams such as the fake Bhutanese refugee scam. In 2025 alone, more than a dozen high-profile cases involving former prime ministers and ministers in corruption came to light. These cases were at the center of the GenZ protests earlier this year. They exposed decades of systemic decay.

Appointing members of the House of Representatives as ministers exacerbates this by blurring the lines between the legislature and the executive, weakening the separation of powers necessary for checks and balances. This leads to incomplete separation, legislative flip-flopping and democratic unaccountability.

Parliament’s oversight and monitoring role is weakened when MPs play a dual role as ministers. Who checks on this when members of the executive are also legislators? This creates fertile ground for corruption. Ministers can influence resource allocations, agreements and policies without strong parliamentary oversight.

The legislature could reclaim its role as a watchdog by reserving ministerial positions for technocrats or experts from outside parliament.

In Nepal, this could disrupt the “vicious cycle” where high election costs push politicians into ministerial positions for corrupt gains, as noted in the analysis of campaign finance.

A path forward

The recent youth protests that forced a change of government in less than 28 hours on charges of corruption signal a public mandate for systemic change.

The political upheaval reflects a powerful public demand for deep, structural reforms. This uprising has exposed a critical truth that Nepal’s democratic institutions can no longer function effectively under the old structures that reward money, favoritism and power-brokers in public service.

In this context, the proposal to bar members of the House of Representatives (HoR) from appointing ministers is not an attack on the parliamentary system but a step toward strengthening it. Such a reform would encourage political parties to elect parliamentarians who are truly committed to their legislative duties, while also enabling the formation of an executive.

Implementing this reform may ultimately require constitutional amendments to formalize the separation of legislative and executive responsibilities. Prioritizing non-parliamentarians in cabinet formation and making appointments based on merit could initiate positive change through political practice.

Nepal can no longer sustain a system where skyrocketing election costs and widespread corruption reinforce each other. By clearly separating membership in the House of Representatives from ministerial ambitions, the country must remove financial incentives that distort democratic competition. This can strengthen accountability and rebuild trust in public institutions. The Election Commission and the interim government must recognize the urgency of reform. They must act decisively for the nation’s democratic future. Otherwise, another wave of citizen-led opposition may begin.

The sixth edition of the Nepal–US Land Forces Talk (LFT), a bilateral military dialogue that has been held since 2018, commenced today at the Nepali Army Headquarters in Kathmandu.

The three-day program aims to strengthen collaboration between the Nepali Army and the United States Army. The dialogue focuses on exchanging military experience and cooperation in areas such as global peacekeeping, humanitarian assistance and disaster response.

As part of the event, Lieutenant General Scott A Winter, who is leading the United States Army Pacific (USARPAC) delegation, is scheduled to hold a courtesy meeting with Chief of Army Staff (COAS) General Ashok Raj Sigdel at the Army Headquarters.

The Nepali Army has been participating in various bilateral and multilateral exercises and competitions with the armed forces of friendly nations including India, China, the United Kingdom and Pakistan, with the objective of enhancing its professional capabilities.

The Army believes that such engagements help further deepen military relations among partner countries.

China is recalibrating its Nepal policy in the aftermath of the GenZ protests that caught Beijing off guard. The demonstrations and widespread arson—unprecedented in scale—forced several countries, including China, to urgently evacuate their officials and citizens from Nepal.

Since the protests, Nepal-China relations have noticeably slowed. While other major countries such as India, the US, Japan, and members of the European Union have already resumed full engagement with the new government at multiple levels, interaction between Nepal and China has remained limited.

In the early days of the unrest, Beijing was particularly concerned about its security interests in Nepal. The fall of the KP Sharma Oli-led government was a troubling development for China. Until the Sept 8–9 protests, bilateral ties were progressing steadily. Just beforehand, China had invited Oli to the Shanghai Cooperation Organization (SCO) meeting, where Nepal is a dialogue partner. Oli met President Xi Jinping on the sidelines, took part in China’s Victory Day parade, and earlier had signed the Belt and Road Initiative (BRI) framework agreement during an official visit, an outcome that had energized Beijing’s engagement with Kathmandu. China was also preparing a five-year cooperation plan with Nepal and expanding support in agriculture, health, and other sectors. Its engagement with Nepali political parties, including the Nepali Congress, was also deepening.

The GenZ movement, however, appears to have triggered new anxieties in Beijing. Media reports alleging the involvement of Tibetan Original Blood (TOB) raised concerns about external influence. Some left-leaning political leaders further fueled this by suggesting geopolitical motives behind the protests. Additional reports that the government was considering appointing youth leaders allegedly close to the Dalai Lama heightened Beijing’s unease.

Compounding these tensions, the Sushila Karki-led transitional government decided to recall Nepal’s Ambassador to China, Krishna Prasad Oli, who is close to the dismissed prime minister Oli. It did not, however, recall the Ambassador to India, Shankar Sharma. China’s displeasure was evident: notably, the Chinese premier did not send a congratulatory message to Prime Minister Karki, an unprecedented break from diplomatic tradition.

Amid this uncertainty, China moved quickly to protect what it views as its security interests. Ambassador Chen Song raised concerns with top Nepali officials, including Prime Minister Karki and senior officials at the Foreign Ministry. They assured Beijing that the new government remains fully committed to the One-China policy, as previous governments had been.

Chinese officials were encouraged by support from Nepali political leaders, the public, and sections of the media who echoed China’s concerns. In a recent meeting with journalists, Ambassador Chen Song said: “The current government’s commitment to the One-China principle is not less than that of the previous government.”

With these assurances, Beijing’s immediate worries appear to have eased, though several Chinese delegations have since arrived in Nepal to assess the situation firsthand.

Regarding the GenZ movement and upcoming elections, Ambassador Chen has conveyed to Nepali leaders that China will not interfere in domestic political affairs and respects decisions made by the Nepali people. At the same time, Beijing has pledged support for Nepal’s reconstruction and electoral processes.

However, China does not appear optimistic about achieving tangible progress under the interim government, particularly on BRI-related initiatives. Although China continues to work on BRI projects from its side, meaningful progress remains unlikely. Many of the 10 selected projects are seen as unproductive, shaped largely by the political interests of major parties. Still, China’s growing engagement in Nepal’s health and education sectors is expected to continue.

The GenZ protests have also affected tourism cooperation. China had declared 2025 as Nepal Visit Year, but Chinese tourist numbers have sharply declined. Before the protests, the two countries were deepening collaboration on tourism promotion, but the political upheaval has significantly disrupted momentum, and officials expect a further drop in Chinese arrivals in the coming months.

For now, China’s approach appears to be maintaining a working relationship with the Karki administration, prioritising the protection of its core interests while keeping expectations low on broader bilateral progress.

The Government of Nepal and Millennium Challenge Corporation (MCC) under the US Government have announced an additional grant  of USD 50 million (around Rs 7 billion) for the MCC Nepal Compact.

With this announcement, the total amount available for Nepal under the Compact has reached USD 747 million  (around Rs 106 billion), of which 550 million dollars will be provided by the US Government and the remaining 197 million dollars by the Government of Nepal.

This additional funding is expected to help deliver the Compact’s core objectives: completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade. 

By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure. The Compact also expands opportunities for US companies and technology to enter Nepal’s market, the US Embassy in Kathmandu stated.

This financial aid from the US government reflects the sustainable partnership between the United States and Nepal. 

It may be noted that for decades, the two countries have established partnership in the efforts to advance economic growth, energy security, and mutual prosperity. 

According to the US Embassy in Kathmandu, the MCC Nepal Compact continues that history through grant-based, debt-free assistance focused on high-impact infrastructure, it is said.

Minister for Agriculture and Livestock Development of Nepal Dr Madan Prasad Pariyar today attended the Thirtieth Conference of Parties to the United Nations Framework Convention on Climate Change (COP30), being held in Belém, Brazil, from 10–21 November 2025, renewing its call for stronger global climate justice efforts.

The Ministerial segment of COP30 officially began this morning with remarks from Vice President of Brazil Geraldo Alckmin, the President of COP30 André Corrêa do Lago, ministers, and senior UN officials.

In his address, Minister Pariyar highlighted Nepal’s major climate challenges—ranging from retreating glaciers and severe drought to unseasonal floods and impacts on agriculture, reads a statement issued by the Nepali Embassy in Brazil.

He outlined Nepal’s ambitious NDC3.0, which charts a trajectory toward zero emissions by 2045. “As one of the world’s most nature-connected nations, our forest cover now exceeds 46 percent."

Calling on developed countries to fulfill past commitments on climate finance, the minister added that it is the duty of every country to submit ambitious NDCs, fulfill treaty obligations, and honor the ICJ Advisory Opinion on climate justice.

He emphasized that all parties, including emerging economies, must engage constructively to keep the 1.5-degree goal within reach.

Minister Pariyar also pressed for the urgent need to integrate a dedicated mountain agenda into UNFCCC processes, referring to the Sagarmatha Sambaad held in Kathmandu in May this year, according to the statement.

Prior to his statement, Minister Pariyar interacted with stakeholders—both present in Belém and online—on progress made so far and the way forward. Participants were briefed on Nepal’s engagements in various agenda areas, including climate finance, adaptation, Loss and Damage, transparency, Global Stocktake, gender, and mountains.

Apart from his intervention at the plenary, Minister Pariyar also attended important side events and engaged at both bilateral and multilateral levels.

Attending an event organized by the Fossil Fuel Treaty Initiative aimed at achieving a just and equitable transition away from fossil fuels this morning, the minister outlined Nepal’s plans to scale up clean-energy practices, including the increasing adoption of EVs and electric ovens.

Also today, he joined the Ministerial Meeting of LDCs, which marked the handover of the presidency of the LDC Group on climate change.

Speaking at the meeting, Minister Pariyar appreciated the contributions of Malawi as the outgoing Chair in advancing the Group’s priorities, while pledging Nepal’s solidarity and support to the incoming presidency of Timor-Leste, the statement further reads.

Later in the afternoon, he joined ministers from member countries of the International Big Cat Alliance (IBCA) to amplify collective efforts to protect climate and biodiversity by safeguarding big cats. As a founding member of IBCA, Nepal reiterated its firm commitment to advancing the Alliance’s goals.

As part of his bilateral engagements, he met yesterday with Ibrahim Cheikh Diong, Executive Director of the Fund for Responding to Loss and Damage. The two sides exchanged views on opportunities for Nepal to access financing from the Loss and Damage Fund for suitable national projects. Minister Pariyar is scheduled to meet Bhupender Yadav, India’s Minister for Environment, Forest and Climate Change, on the sidelines tomorrow.

Nepal will host a side event entitled “Sagarmatha to Belém: Advancing Climate Action”, with the objective of reviewing progress made since the adoption of the Sagarmatha Call for Action and developing strategies to advance the mountain agenda within the UNFCCC processes, according to the statement.

Ministers and senior officials from mountainous countries, along with UN officials, will be attending the event.

He is also scheduled to participate in the Ministerial event “Melting Point and the 1.5°C Goal: Global Impacts of Cryosphere Loss and Pathways to Return from Overshoot”, organized by the International Cryosphere Climate Initiative.

The Minister, who arrived in Belém on November 15, is scheduled to return home on November 19.

The “National Festival of Tolerance” was held at Um Al Emarat Park from November 14 to 16 on the occasion of International Day of Tolerance-2025 in Abu Dhabi.

During the program, the Nepali Embassy in Abu Dhabi showed its remarkable and active participation in the field of tourism promotion and cultural diplomacy by setting up a Nepal Tourism Booth/Stall for the first time, reads a statement issued by the Nepali Embassy in Abu Dhabi.

Minister of Tolerance and Coexistence of the UAE Sheikh Nahyan bin Mubarak Al Nahyan inaugurated the 7th edition of the fair, which carried the theme ‘Hand in Hand’.

After the inauguration of the fair, His Highness Sheikh Nahyan bin Mubarak Al Nahyan visited the Nepali stall and received information from Ambassador Tej Bahadur Chhetri, according to the statement. 

Ambassadors from various countries, diplomats, officials from the UAE government's Ministry of Tolerance and Coexistence, tourism entrepreneurs, students, and well-wishers of Nepal also visited the Nepali stall at the fair.

On November 15, the Nepal Federation of Indigenous Nationalities performed group dances reflecting Nepal’s diverse ethnic and regional traditions and culture.

The Nepali stall was decorated with various Nepali items, including Nepali handicrafts and sculptures, tourist posters and paintings reflecting the natural beauty of Nepal and Nepali souvenirs.

In addition to that, Nuwa Puch performed a famous lakhe dance, reflecting Newari art and culture, during the three-day fair.

Similarly, drawing, coloring, and interactive activities were also conducted to attract the children and families.

The Embassy and the Nepal Tourism Board handed promotion materials as gifts to those who answered the quiz correctly on topics such as Nepal-UAE relations, Nepal's tourism, and geography, the statement further reads. 

Various diplomatic missions in Abu Dhabi, including those from Asia, Europe, and Africa, set up stalls showcasing their respective arts and cultures.

Global Heritage showcased art exhibitions and international musical and entertainment programs during the fair attended by various international schools, social organizations, and cultural groups based in Abu Dhabi.

The Embassy expressed its heartfelt gratitude to the UAE Government, the Embassy family, the Nepali community, the Federation of Indigenous Nationalities, Newa:Puch:, media personnel, and volunteers for their contribution in making the fair a success. 

Armed Police Force, Nepal, and the Seema Surakshya Bal (Border Security Force), India have reached an understanding to make joint border patrol and border security more effective.

During the 9th bilateral coordination meeting, discussions were held on the issue of controlling cross-border crimes and drug smuggling.

Nepali delegation was led by APF, Nepal, Inspector General, Raju Aryal, while Director General of SSB, India, Sanjay Singhal, had led the Indian delegation. 

The 9th meeting was held in New Delhi, India, from November 12 to 14. 

Similarly, various issues including controlling smuggling and illegal import in border areas, and exchanging information and training were also discussed, said Joint-Spokesperson at the APF, Nepal, Superintendent of Police, Shailendra Thapa.

The meeting also reviewed the implementation of the agenda passed by the 8th coordination meeting held in December last year in Kathmandu. 

Discussion was also held on the issue of effectively implementing the shared concepts passed by the meeting and the future strategy.

Prime Minister Sushila Karki has said that Nepal truly values Australia’s friendship, its continued development assistance and its principled support to the country's democratic and inclusive transformation.

Participating in a special reception hosted by the Embassy of Australia in Nepal to commemorate 65 years of diplomatic relations between Australia and Nepal on Saturday, Prime Minister Karki, who also holds the Foreign Ministry portfolio, said over more than six decades partnership between the two countries has grown to cover key areas like education, trade, development and culture.

On the occasion, she also launched a souvenir book: 65 Years Together published by the Association of Nepalese Alumni from Australia highlighting the timeline, dimensions and depth of people-to-people linkages between the two countries, according to a press statement released by the Embassy.

Since establishment of diplomatic ties between the two countries in 1960, Nepali diaspora in Australia has expanded significantly in recent years, strengthening people-to-people links and cultural ties. Today, Nepalis contribute actively to Australia’s multicultural society, while maintaining deep connections with their homeland.

Both nations collaborate closely in bilateral, regional, and multilateral fora, including the United Nations and share common agendas on climate action, sustainable development, gender equality, and peacekeeping, reinforcing their commitment to global stability and prosperity.

Australia-Nepal relationship continues to flourish with ever-increasing people-to-people connections, respect for sovereignty, and promotion of democratic values, adds the statement.

Nepal and India have signed an agreement which will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal) including bulk cargo under an expanded definition.

The agreement was signed in a bilateral meeting between Anil Kumar Sinha, Minister for Industry, Commerce, and Supplies and his Indian counterpart Piyush Goyal, Minister for Commerce and Industry India. 

This liberalization extends to key transit corridors- Kolkata-Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli), thereby strengthening multimodal trade connectivity between the two countries and Nepal’s trade with third countries, according to a press statement issued by India. 

The Letter of Exchange (LoE) enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerized and bulk cargo, facilitating transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar in Nepal. This rail link, constructed with grant assistance from the Government of India, was jointly inaugurated by the Prime Ministers of India and Nepal on 1 June 2023.

The meeting also welcomed ongoing bilateral initiatives to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts and other infrastructure. India remains Nepal’s largest trade and investment partner, accounting for a significant share of its external trade, according to the statement.  These new measures are expected to further consolidate economic and commercial linkages between the two countries and beyond.

The World Bank (WB) has said that reflecting the recent unrest and heightened political and economic uncertainty, Nepal's real GDP growth is projected to slow to 2.1 percent in FY26 in the baseline scenario, with a potential range of 1.5 to 2.6 percent. 

The WB stated this in its latest Nepal Development Update (November 2025) report launched here today.

According to the WB report, poverty rates (at USD 4.2/day) are slightly higher than previously projected, reaching 6.6 percent in FY26 and 5.9 percent in FY27 compared with 6.2 percent and 5.4 percent projected before the unrest. 

Reconstruction efforts are expected to begin in FY26 and gain momentum in FY27, supporting a recovery in GDP growth to 4.7 percent in FY27.

The projected growth slowdown in the baseline is expected to be largely driven by the services sector. Tourism activity is projected to decline sharply, reflecting a significant decline in international tourist arrivals, while the spillover effects of asset losses are expected to weigh on insurance services. 

The services sector is projected to recover in FY27 as tourism rebounds, insurance shocks dissipate, and government measures, such as insuring public property, support demand. 

Industrial sector growth is projected to slow marginally in FY26 compared to FY25. Hydropower-related industrial activity is expected to remain robust, but non-hydropower-related private investment and construction is projected to be weighed down by weaker investor confidence following the unrest. Industrial sector growth is expected to pick up sharply in FY27, supported by public projects and reconstruction efforts. 

Agriculture growth is projected to soften in FY26 due to delayed paddy planting, particularly in Madhesh Province, but is expected to recover in FY27 assuming favorable monsoon conditions.

Finance Minister Rameshwor Prasad Khanal said, "To restore business confidence and accelerate revival, the Government of Nepal has announced an integrated business revival plan, under which facilities such as grants, tax exemptions, and operational support have been arranged."

According to the Finance Minister, priority has been given to public resources for infrastructure reconstruction and election preparation, a reconstruction fund has been established for the restoration of damaged public and private property, and these steps aim to restore private sector activities while laying the foundation for a strong economy, which is the goal of the Government of Nepal.

On the occasion, David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka, said: "Boosting public investment is critical for improving growth, creating jobs, and building prosperity for Nepalis. This requires implementing key reforms including strengthening project planning and budgeting, streamlining land acquisition and tree-cutting processes, improving cash management efficiency, and amending procurement laws and regulations to speed up project delivery."

Inflation expected to remain within 5 percent ceiling

Inflation is expected to remain within the central bank’s 5 percent ceiling over the medium term. Easing global commodity prices, moderating inflation in India (transmitted through the currency peg), and softer cost pressures will help contain prices. However, these gains would be partially offset by a potential decline in domestic paddy output, which could keep food inflation elevated in FY26.

The current account surplus is projected to widen in FY26, driven by rising remittances despite a projected increase in the trade deficit and underperformance in tourism. The trade deficit is expected to widen slightly in FY26, led by imports of merchandise—particularly crude edible oils and construction equipment for hydropower— and more substantially in FY27 with higher demand linked to non-hydro construction projects. 

Tourism receipts are expected to decline. These downward pressures on the external account are expected to be offset by robust remittance growth, resulting in a widening of the current account surplus from 6.7 percent of GDP in FY25 to 7.3 percent in FY26.  The surplus is projected to moderate in FY27 as remittances level off.  FDI inflows are likely to remain subdued over the medium-term. Foreign exchange reserves are expected to stay comfortably above the regulatory minimum of seven months of import cover.

The fiscal deficit is projected to widen in FY26 to 2.8 percent of GDP driven by increased spending on reconstruction, elections, private sector relief, and outstanding liabilities. These increased spending needs are expected to be partially offset by announced austerity measures and reprioritization of development projects, supported by relaxed virement rules. 

Nominal revenue growth is projected to slow in FY26, reflecting weaker import growth and lower VAT and corporate income collections, particularly from the insurance and tourism sectors. The deficit is forecast to narrow in FY27 as revenues recover. Deficits are expected to be financed through a mix of external concessional and domestic borrowing within statutory ceilings. Public debt is projected to increase from 43.6 percent of GDP in FY25 to 45.2 percent in FY26 and stabilize thereafter keeping Nepal at low risk of debt distress.

The outlook is subject to mixed risks.  Key downside risks include rising frequency of natural disasters and persistent political uncertainty weighing on economic activity, higher NPLs straining the domestic financial sector, Nepal’s continued presence on the Financial Action Task Force Grey List, and disruptions to public services and core administrative processes reflecting damage to public infrastructure. On the upside, a successful political transition and sustained macroeconomic management could strengthen investor sentiment supporting a stronger economic recovery.

Recent Economic Developments

According to the WB, Nepal's economic growth picked up to 4.6 percent in the FY25 from 3.7 percent in FY24. The rebound was led by manufacturing and construction, supported by increased hydropower generation. Agriculture also contributed positively with paddy output rising despite flood damage. The services sector performance was mixed. Growth slowed in tourism, affected by Tribhuvan International airport (TIA) upgradation works and geopolitical tensions that disrupted international flights to Nepal via the Middle East. 

Financial sector activities were impacted by subdued credit demand and rising non-performing loans (NPLs). On the other hand, wholesale and retail trade performed well supported by higher merchandise imports and improved access to trade finance.

Headline inflation declined to 4.1 percent in FY25 from 5.4 percent in FY24 falling below the Nepal Rastra Bank’s (NRB) 5 percent ceiling. Both food and non-food inflation moderated although this was partly offset by rising transport costs due to higher public transport fares. 

The monetary policy stance remained cautiously accommodative, underpinned by comfortable foreign exchange reserves and easing inflation. The policy rate was reduced by 50 basis points to 5.0 percent at the start of FY25 following a sharper 150-basis-point cut in FY24. As monetary easing continued, lending rates fell more sharply than deposit rates, reaching a record low of 8.7 percent. 

Nevertheless, private sector credit expanded only modestly, as weak demand and rising NPLs constrained lending. The NPLs ratio climbed to 4.6 percent at the end of FY25 from 3.9 percent at the end of FY24. This increase occurred despite the introduction of forbearance measures for the construction sector and for small loans (up to NPR 50 million) in select sectors such as agriculture and fishing that had accounted for a large share of NPLs in FY24. However, banks maintained strong capitalization, and overall profitability improved marginally.    

The current account surplus widened further in FY25 rising to 6.7 percent of GDP from 3.9 percent of GDP in FY24, supported by remittances. Healthy remittances were driven by Nepali workers moving to new, higher-wage destinations such as Japan and South Korea, a weaker Nepali Rupee, and increased use of formal transfer channels. 

The trade deficit remained stable in FY25 as both exports and imports picked up sharply. Export growth was driven by refined edible oils - mainly soybean and sunflower oil re-exported to India - after India raised import tariffs on edible oils from non-SAFTA countries. Imports increased in parallel, reflecting higher crude edible oil purchases from major suppliers, including Argentina and Brazil. The widening current account surplus contributed to robust foreign exchange reserves, which picked up to cover 15.4 months of import by end of FY25.

The fiscal deficit narrowed to a nine-year low of 2 percent of GDP in FY25 supported by stronger revenue mobilization. Revenues (including grants) picked up to 20 percent of GDP in FY25 from 19.4 percent of GDP in FY24, bolstered by higher VAT collections, increased excise duties on alcohol and beer, and increased trade-based revenues from rising merchandise imports and higher customs duty rates. 

Total expenditure increased slightly from 21.9 percent of GDP in FY24 to 22 percent in FY25 driven by larger budget allocations for capital spending rather than improved execution. Capital expenditure execution remained weak at 63.2 percent in FY25 (slightly lower than the 63.5 percent in FY24) held down by several challenges across the project cycle as discussed in detail in the special focus chapter.  Recurrent spending declined marginally from 18.5 percent of GDP in FY24 to 18.3 percent of GDP in FY25, reflecting lower domestic interest payments and reduced fiscal transfers to subnational governments.

Nepal is one of the most disaster-prone countries in the world. The question is not whether a disaster will occur, but which type and when. Marking this week as Disaster Risk Reduction Week in continuation of the International Day for Disaster Risk Reduction observed on Oct 13, Looking at past disasters from a retrospective perspective, in addition to recurring events such as earthquakes, floods, and landslides, we can also identify unique incidents such as the Armala sinkhole in Pokhara, the tornado in southern Nepal, the recent sinkhole in Hetauda, and the outburst of a supraglacial lake in Tibet that caused floods in Rasuwa.

On July 8, a sudden flash flood triggered by the rapid discharge of a supraglacial lake on the Purepu Glacier in Tibet caused widespread devastation along the Bhotekoshi River in Rasuwa, Nepal. The event claimed at least 11 lives and left 18 people missing. At the same time, Nepal experienced drought in the Tarai within a span of just 150–200 kilometers, underscoring the complex reality of disaster exposure in the country. Earlier, on May 2, a road in Gairigaun, Hetauda, suddenly caved in, swallowing a vehicle into a swamp-like sinkhole. The vehicle remains missing despite search operations. These two recent events, one a transboundary disaster and the other a unique local hazard, prompt the author to revisit unique past disasters in Nepal rather than recurring ones. Starting with the May 2012 Seti River flood, the author reviewed all unique disasters and their impacts in the country.

On 5 May 2012, a massive avalanche from Annapurna IV triggered a sudden flood in the Seti River, Kaski District, killing 72 people, displacing many families, and causing heavy property loss. Dwivedi & Neupane (2013) reported that approximately 32,000 m² of ridge collapsed from 6,850 meters to 4,500 meters, pulverizing ice, rock, and sediment. The impact generated a brown cloud, strong vibrations, and seismicity equivalent to 3.8–4.0 Richter Scale, recorded in Nepal and even in Tibet. The debris rushed downslope into the Seti River, transforming into a debris flow that traveled 20 km downstream at speeds of about 12 m/s within 28 minutes. Although minor rainfall had occurred a day earlier, it was not linked to the avalanche. 

During Nov 2013, major sinkholes formed in Armala, Pokhara. The region, where the Pokhara and Ghachock formations meet, consists of fluvio-lacustrine terraces with mixed sediments of gravel, limestone, quartz, gneiss, calcareous silt, clay, and fine sand. Between 2013 and 2017, over 200 sinkholes formed in Armala, creating severe challenges for residents. On 31 March 2019, strong winds and hailstorms hit Bara and Parsa districts, killing 30 people, injuring more than 1,150, and making over 2,890 families homeless. Infrastructure, utility services, agricultural land, and businesses were damaged. Research suggested this was the first officially recorded tornado in Nepal, though some classified it as a windstorm. Regardless, such wind events on this scale are unusual in the country.

On 15 June 2021, a disastrous debris flow occurred along the Melamchi River in central Nepal and caused enormous loss of life and property. At least 350 residential buildings, six bridges, and numerous infrastructures were affected. According to the World Bank and GFDRR, the flood resulted from the combined effect of heavy rainfall, temperature changes at the snow line, erosion in the end moraine of Pemdan Lake, a possible breach of the natural dam responsible for the lake, and cascading effects of the dam breach, along with erosion and a series of landslides along the Melamchi River.

In Oct 2021, the Mahakali, Karnali, and Seti rivers recorded the highest flows in decades due to unseasonal rainfall, hitting Sudurpaschim Province hardest. The disaster caused 88 fatalities, 30 missing persons, and 10 injuries. 

On 13 Aug 2023, heavy rains caused floods in Muktinath, Kagbeni village of Mustang. About 31 buildings, two permanent and three temporary bridges, were destroyed. According to Fort et al. (2024), Kagbeni (2,810 meters) lies in the north Himalayan rain-shadow area and normally receives little rainfall (<300 mm/yr). 

However, for several years, the trend has been toward increased rainfall, leading to more landslides and floods. Although rainfall data from the nearest monitoring station, Jomsom (2,720 meters), showed high rainfall, there is no detailed information about rainfall amounts at Jhong (3,600 meters) and Muktinath (3,760 meters), the source area of the Kagbeni flood. The flood was likely a landslide lake outburst, but the difficult terrain has limited detailed study.

Nepal has also recently experienced heat extremes. On 30 May 2024, Nepalgunj reached 44.2°C and Dhangadhi 44.1°C, closer to the highest ever recorded data of 46.4°C in Dipayal on 5 June 1995.

On 8 July 2024, the cloudburst event occurred, where Dodhara Chandani in Kanchanpur recorded the heaviest 24-hour rainfall in the 77-year history of rainfall measurement in Nepal, with a recording of 624 mm. Other nearby stations recorded similar extreme rainfall, surpassing previous records from 1993.

On 16 Aug 2024, a sudden flood carrying boulders devastated Thame village in Khumbu, destroying 60 buildings and damaging various structures. On that day, there was hardly any rainfall. It was later found that the flood was caused by an outburst from the Thyanbo glacial lake. Other significant events include the Birendra Lake overflow on 21 April 2024 with no human casualties. On 12 July 2024, A landslide struck two buses at Simaltal, Chitwan, sweeping them into the Trisuli River and causing the loss of 59 lives.

During 27–29 Sept 2024, extreme precipitation caused flooding, landslides, and inundation across different parts of Nepal. The Department of Hydrology and Meteorology (DHM) recorded rainfall at 222 stations nationwide, of which 77 stations reported heavy rainfall exceeding 200 mm on 28 September. Among the hydrological gauging stations, 23 recorded water levels surpassing the danger level, while another 14 recorded levels exceeding the warning threshold. The floods affected 518,403 households and a population of 2.59m, with an estimated economic loss of Rs 46.6bn. During this event, three buses were buried by a mudslide in Jhyaple Khola, Dhading, resulting in the loss of at least 35 lives.

On May 15, at around 10:30 pm, a sudden debris flow occurred in the Tiljung stream in Namkha, Humla. The incident affected the 15 kW micro-hydropower project, drinking water sources, cultivable land, irrigation canals, and the motorable bridge over the Til stream. According to field reports, this was likely caused by the melting of permafrost within the moraine, which developed into a cavity or piping system extending to the lakebed, ultimately resulting in the sudden drainage of the lakes. The Til flood does not resemble a typical GLOF, but a detailed study could classify it more accurately as a Thermokarst Flood or Permafrost-Release Flood. A massive flood in Upper Mustang on July 9, carrying mud and damaging six bridges, including four that were completely swept away.

Also, the cyclones that develop in the Arabian Sea and the Bay of Bengal have indirect impacts and sometimes cascading and compounding effects. For example, Cyclone Tauktae in May 2021 caused mild to light rainfall across western Nepal, with a flash flood in Ramaroshan in Achham District in Sudurpashim Province. Cyclone Yaas in May 2021 left various parts of Nepal drenched in rain and overcast conditions. On 14 Oct 2014, sudden weather changes caused by Cyclone Hudhud in Nepal reportedly triggered avalanches around Dhaulagiri and Annapurna. The avalanches and heavy snowfall killed at least 43 people in Nepal and caused heavy rainfall in major cities. 

Along with recurring events such as earthquakes, including the 2015 Gorkha Earthquake, the Doti Earthquake of 2022, and the Bajhang and Jajarkot earthquakes of 2023, as well as annually occurring monsoon disasters, and global pandemics such as Covid-19, unique disaster events have caused major damage to both life and property. These events have resulted in substantial economic losses and placed a heavy burden on reconstruction, rehabilitation, and recovery efforts, ultimately impacting Nepal’s overall GDP. Some of the above events include transboundary challenges in disaster management, where disasters originating in neighboring countries also cause loss of life and property in Nepal. 

In addition, the change in the pattern and intensity of rainfall, unseasonal droughts, increasing heatwaves and forest fires, along with various climate extremes, reflect the evolving risks caused by climate change. According to NDRRMA, although rainfall during the first 90 days of this year’s monsoon has been below average, monsoon-related disasters have already caused 63 deaths and left 22 people missing. As hydro-meteorological events and their effects increase, the early warning system for such hazards needs to be strengthened. In 2024, forecasts issued by the DHM were almost 70 percent accurate, but in 2025, accuracy appears to be lower, highlighting the need for technological improvements to enhance forecast reliability.

According to the National DRR Strategic Plan of Action (2018–2030), the target was to reduce annual disaster-related deaths to 300 by 2025. However, given the current situation, achieving this target seems challenging. Moving from disaster management to investing in risk reduction is more effective, more efficient, and fairer. This is also the message of the International Day for Disaster Risk Reduction: “Fund resilience, not disasters. Disaster risk financing strategies must also be strengthened, especially to protect agriculture and farming, while reducing the financial burden in the post-disaster phase. 

The Government of Karnali Province has already introduced good practices in risk transfer and insurance by launching the Natural Disaster Risk Group Insurance Program, which provides coverage of up to Rs 200,000 and has reached around 1.7m people. In addition, the Disaster Home Protection Program has supported 16,078 households with benefits worth Rs 8.8m as of the fiscal year 2024/25. It is also essential to engage and support community disaster management committees, local women’s and youth groups, so their involvement extends beyond formal channels and can be immediately mobilized after a disaster. 

It is equally necessary to equip all security forces with the required personnel, rescue gear, and rapid response training needed for swift mobilization, and to explore the possibility of establishing a separate National Disaster Response Force, as the country needs regular human resources dedicated to disaster response. We are all aware that Nepal is one of the most disaster-prone countries in the world, but it is also time to explore potential hazards that may cause disasters, as past trends have shown unexpected events in the country. It is high time we ask ourselves and prepare for every possible disaster, since Nepal seems to be safe only from marine disasters.

The author is an earthquake engineer with over a decade of experience in practice and research in DRR, civil and earthquake engineering

Nepal’s landlocked position between India and China, two of the world’s fastest-growing economies, presents both challenges and opportunities. On one hand, Nepal’s dependence on external gateways for international trade increases shipping costs, extends delivery times, and exposes exporters to monopolistic practices by shipping lines and intermediaries at transit or transshipment ports. These inefficiencies, coupled with risks of fraud in the supply chain, have reduced Nepal’s competitiveness in the global market.

Logistics costs in Nepal are estimated to account for about 25–30 percent of the total value of products, factoring in documentation time, bank and customs procedures, and transit delays. This high cost base hinders exports and slows industrial growth.

Yet, Nepal also holds distinct advantages. Its strategic location at the crossroads of South and East Asia, the potential to expand its manufacturing base, and a strong private sector active in freight forwarding for exports all position the country for growth. However, import handling, customs brokerage, warehousing, and distribution services remain underdeveloped.

In the absence of an integrated Industrial and Logistics Master Plan (ILMP), Nepal has been unable to fully leverage these strengths. The ILMP seeks to bridge this gap by integrating trade facilitation, industrial development, and logistics modernization into a unified national strategy. It recognizes logistics as the fourth pillar of competitiveness—alongside policy, infrastructure, and skills—and envisions transforming logistics into a sector that drives industrial diversification, export growth, and regional integration.

Why industrial–logistics synergy matters

For a landlocked economy like Nepal, efficient logistics are crucial for reducing trade costs, improving reliability, and connecting businesses to regional and global value chains. Fragmented logistics systems impose high transaction costs, cause unpredictable delivery schedules, and undermine confidence in international trade.

Integrating industrial and logistics planning means ensuring that dry ports, ICDs, logistics parks, cold chains, and customs points are physically and operationally linked to industrial zones, SEZs, and trade corridors. It also requires aligning industrial investment policies with those promoting logistics service providers (LSPs), enabling both sectors to grow in tandem and attract greater foreign direct investment (FDI).

Nepal’s logistics and industrial ecosystem

Over the past decade, Nepal’s logistics landscape has evolved significantly. The country now has dry ports and inland container depots (ICDs) in Birgunj, Bhairahawa, Nepalgunj, Biratnagar, Chobhar, and Tatopani, among others. The private sector, especially members of the Nepal Freight Forwarders Association (NEFFA), has played a key role in linking customs operations, transportation, and storage along major supply chains.

Despite these gains, challenges persist: limited multimodal connectivity, long border wait times, a complex policy environment, inadequate infrastructure for cold chain and e-commerce logistics, and limited adoption of digital systems for supply chain management and risk mitigation.

The ILMP aims to address these issues by ensuring that logistics are treated not as an afterthought but as a core component of industrial policy, fostering closer coordination between production hubs and logistics nodes.

Regional context: Corridors for connectivity

Nepal’s unique location between India and China makes it an ideal candidate to evolve from a landlocked to a land-linked nation, a vital transit bridge in South and East Asia. The South Corridor (India–Nepal) remains Nepal’s primary trade route through Indian ports, while the North Corridor (China–Nepal) and the East–West domestic corridor present new opportunities for balanced industrial growth and regional integration.

However, high costs, lengthy procedures, and repetitive documentation requirements across borders continue to constrain trade. Strengthening regional connectivity therefore requires proactive diplomatic and technical negotiations with transit countries—supported by a robust logistics master plan that builds confidence among neighbors to use Nepal’s territory as a transit or transshipment route.

Responding to global megatrends

Global supply chains are being reshaped by three major forces: digitalization, decarbonization, and resilience. To stay competitive, Nepal must embrace these trends by developing digital trade systems, promoting green logistics infrastructure, and building resilient, shock-absorbing supply chains that can adapt to global disruptions.

Vision for the future

Nepal’s vision should be to transform itself from a landlocked country into a land-linked, competitive, and sustainable industrial and logistics hub connecting South and East Asia. This vision centers on empowering small and medium enterprises (SMEs), integrating into global supply chains, and boosting national competitiveness.

Strategic priorities include: developing industrial-logistics corridors; strengthening private sector participation; accelerating digitalization; ensuring environmental sustainability, and building human capital to drive logistics innovation

The way forward

Freight forwarders and logistics service providers identify five key strategies outlined in the ILMP to realize this transformation: integrated planning, infrastructure modernization, policy coherence, governance and skills development, and regional integration

The Industrial and Logistics Master Plan (ILMP) is more than a blueprint for infrastructure; it is a roadmap for Nepal’s transformation. By positioning logistics as a catalyst for competitiveness, openness, and resilience, the ILMP represents a shared vision between policymakers and freight forwarders to turn Nepal’s geography from a constraint into an advantage. It marks a strategic shift from being landlocked to becoming land-linked, unlocking Nepal’s potential as a dynamic connector between the world’s fastest-growing regions.

Nature, in its raw complexity, offers more than ecological insight; it serves as a diagnostic mirror for human governance. In this piece, I, a field researcher at the University of Basel on governance and sustainability sciences, aim to draw parallels between the behavioral patterns of Dhole (the Asiatic wild dog, locally known as Bwanso) at Nepal’s Dhorpatan hunting reserve, predatory behavior of Nepal’s political institutions and a polity on the brink. 

Based on my field research at the reserve, I can say that the Dhole’s surplus aggression, killing beyond necessity, barking without cause and obsessively marking territory reflects a drive for dominance untethered from survival. 

Oversexed during the mating season (mating occurs up to 40 times a day), the lioness shows erratic shifts in her behavior. She growls and signals a breakdown in cooperative dynamics with her lion. These instinctual cycles of excess, fatigue and territorial assertion are not merely biological curiosities; they metaphorically shed light on the behavioral pathology of Nepal’s political institutions in chaos for over three decades.

A vicious cycle

Since Nepal’s political shift in 1990, governance has been under the domination of the Nepali Congress, UML/its factions and later the Maoists, each contributing to institutional decay. The Maoist insurgency, launched in the 90s with the promise of inclusion and anti-corruption, brought immense human, private properties and infrastructural losses but failed to deliver stated reforms. Successive governments engaged in corruption, enabled capture of public properties and weakened state institutions. 

Leaders such as Khadga Prasad Sharma Oli, Pushpa Kamal Dahal, Sher Bahadur Deuba, Madhav Kumar Nepal, Baburam Bhattarai, Jhalanath Khanal, and late Girija Prasad Koirala presided over regimes marked by impunity and performative politics. Oli, now UML chairman and a multi-term Prime Minister, increasingly defies institutional norms, positioning himself as a national savior while his party cadre applaud his witty lines. 

The bureaucracy has become a pawn for political groups, and public trust in this institution has eroded. Nepal’s political culture driven by dominance, exhaustion and erratic behavior mirrors the chaotic aggression of the lioness and the dhole. Lavish attention has led political figures to mistake flattery for stature, much like the donkey who, after receiving undue praise, believed itself to be a lion.

Economic paradoxes

The Ministry of Finance reveals that in 2023-24, Nepal’s total public debt (domestic and external combined) stood at Rs 2,434.57bn, rising to Rs 2,664.42bn in 2024-25, a 9.4 percent annual increase. Public revenue in 2024-25 totaled Rs 1,196.19bn, against a national budget of Rs 1,860.3bn.

Expenditures reached Rs 1,512.98bn, achieving an execution rate of 81.33 percent. Of this, current expenditures consumed most of the budget, while capital spending (18 percent) lagged far behind, reflecting a chronic inability to implement developmental projects effectively. On the trade front, imports reached Rs 1,841.20bn, dwarfing exports of only Rs 277bn. 

Remittance increased 19.2 percent and the total amount reached by Rs 1723.27bn in 2024-25, constituting 28.22 percent of the GDP.  The GDP increased modestly from Rs 5,705.10bn in 2023-24 to Rs 6,107.22bn in 2024-25, with agriculture contributing 25.6 percent, industry 12.4 percent, and services 62.2 percent. The overall economic growth rate of 4.61 percent is insufficient to absorb the expanding labor force or sustain developmental ambitions.

Despite modest growth, Nepal’s structural economy remains severely distorted. Infrastructure across economic, social and environmental sectors is deteriorating. The tourism industry continues to suffer from unreliable and costly connectivity systems. Domestic airfares remain disproportionately expensive, discouraging travel. Agricultural stagnation persists due to poor input supply, inadequate processing facilities, technologies and weak market linkages, despite heavy public spending. Each year, approximately half a million Nepalis enter the labor market, yet the domestic economy generates very few viable jobs. 

Consequently, labor migration remains the default escape, with an additional 250,000 renewing their work permits annually. The economy, therefore, is sustained not by innovation or productivity but by remittances. This condition stands in stark contrast to the insights of the 2025 Nobel Laureates in Economic Sciences: Prof Peter Howitt, Prof Joel Mokyr, and  Prof Philippe Aghion, who emphasises innovation-driven growth and institutional dynamism as the foundation of sustained prosperity that Nepal has already missed.

Myth of a directly elected chief 

Nepal’s political economy is deeply compromised by state capture, corruption and impunity conditions that have galvanized the GenZ movement. The electricity billing crisis exemplifies systemic injustice: while industrial elites evade payment through litigation, ordinary citizens face disconnection after brief delays. Illicit invoicing and bribery further erode the tax base and institutional capacity. 

GenZ activists have exposed the stark contrast between the opulence of political leaders with private gyms, swimming pools, stock of imported liquors, hoarded cash and the deprivation in rural communities lacking basic social/economic infrastructure, health, education and maternal care. Their call to bring the “Lion/Lioness and the Dhole to justice” reflects a broader demand for governance reform. 

Among their proposals, the push for a directly elected executive has sparked debate. While the appeal for decisive leadership is understandable, Nepal’s fragile state institutions, uneven education and diverse social fabric and wrongful political fragility make a directly elected executive risky. Without strong institutional checks and balances, the state could slide into totalitarian and authoritarianism. The crisis is not merely government structural but rooted in moral hazard, as political actors manipulate democratic processes for personal and political group gains. 

Nepal must first restore institutional integrity with strong checks and balances before mulling over a directly elected executive. The immediate priority is doing away with corruption, which is thriving due to the involvement of political groups and their leaders, and rebuilding public trust.

A moral and institutional renewal

Nepal’s salvation does not lie in adopting a new executive model but in undertaking a rigorous, impartial legal reckoning against widespread and unchecked corruption. The nation must confront the rooted networks of political and bureaucratic corruption that have hollowed out governance and state institutions. Only through the prosecution and removal of corrupt political leaders and officials, and the restoration of ethical governance can Nepal build a sustainable path toward peace, justice, inclusive development and prosperity. 

Until then, the nation’s political stage will continue to resemble the wild drama of the lion/lioness and Dhole marked by instinct, exhaustion and unrestrained appetite, rather than by reason, discipline and the pursuit of common goods.