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In Nepal, hospitality is not merely a business. It is a culture, a tradition, and a way of life. From small family-run lodges in the hills to modern hotels in cities and tourist hubs, Nepali hotels offer more than beds and buildings. They offer warmth, care, and genuine human connection. Guests are not seen as mere customers; they are treated as revered visitors. A welcoming smile, attention to small details, and service offered straight from the heart turn hospitality into an experience, not just a convenience. It is not the rooms that define Nepali hotels, but the sincere warmth and heartfelt care of the people who run them. This is why hospitality in Nepal is often called “hospitality from the heart.”

Nepal is a country where the ancient saying “Atithi Devo Bhava” (the guest is like a god) remains deeply respected. This belief is not just spoken; it is practiced every day. When a guest enters a hotel, they are not treated like a room number but welcomed like a family member. A smile at the reception, a warm greeting, and personal attention make guests feel comfortable from the very first moment.

Many travelers who visit Nepal remember not only the mountains and temples, but also the people. Hotel staff often go beyond their job descriptions to help guests, guiding them on local culture, food, festivals, and travel plans. Sometimes, they sit together over tea, listening to stories and talking like old friends. This emotional connection is something money cannot buy.

One special feature of Nepali hotels is personalization. In many places, staff remember guests’ names, food preferences, and travel interests. A casual mention of liking spicy food may result in a customized meal the next day. If a guest falls unwell, staff often check in personally and offer home-style remedies. These small gestures create lasting memories.

Family-owned hotels and lodges play a major role in shaping Nepal’s hospitality identity. Owners and their families are often directly involved in daily operations. Guests may meet them during breakfast or dinner, creating a strong personal bond built on trust and comfort. For many visitors, staying in such hotels feels less like a commercial stay and more like being welcomed into a Nepali home.

Food is another powerful expression of hospitality in Nepal. Hotels proudly serve local dishes prepared with care and love. Traditional meals such as dal-bhat (Thakali thali), momos, and local pickles are often made using family recipes. Many hotels take time to explain the food culture, turning dining into a cultural experience rather than a simple service. Sharing food becomes a way of sharing stories, culture, and emotion.

Nepal’s hospitality industry also reflects resilience and humanity. After natural disasters like earthquakes, and during difficult times such as the Covid-19 pandemic, many hotels opened their doors to support communities. Some provided shelter, food, and assistance to locals and stranded travelers, proving that hotels in Nepal are not just businesses, but responsible members of society.

Respect for nature and sustainability is another important aspect. Many hotels, especially in the Tarai and mountain regions such as Sauraha, Meghauli, and Bandipur, embrace eco-friendly practices. They use local materials, support local farmers, reduce waste, and encourage responsible tourism. Guests are educated about protecting nature and respecting local culture. This care for the environment comes from values rooted in the heart, not just written policies.

Training and professionalism in Nepal’s hospitality sector have improved significantly in recent years. While skills can be taught, what truly sets Nepali hotel staff apart is their attitude. Kindness and sincerity come naturally. A simple “How was your day?” asked with genuine interest can transform a guest’s entire experience.

For international tourists, Nepali hospitality often feels refreshingly different. In a fast-paced, commercial world, the slow, caring, and respectful service in Nepal stands out. Guests feel seen, valued, and remembered. Many return again and again—not only for the destinations, but for the people they met along the way.

For domestic travelers, hotels are spaces of celebration and comfort. Weddings, family gatherings, business meetings, and festivals are hosted with care and emotional understanding. Hotel teams recognize the meaning behind each occasion and work hard to make every event memorable.

The future of Nepal’s hospitality industry looks promising. As hotels grow and modernize, it is essential to protect the heart of hospitality. Technology, luxury, and design matter, but they should never replace human warmth. The true strength of Nepal’s hotels lies in their people, their smiles, respect, and willingness to serve with sincerity.

In conclusion, hotels in Nepal are more than rooms and facilities. They are spaces of connection, culture, and care. Hospitality from the heart is not a slogan here; it is a daily practice. Guests may forget the room number, but they never forget how they were made to feel. That feeling of being truly welcomed is the real luxury of Nepali hospitality.

In Nepal, guests may check out of a hotel, but they never check out of the hearts that welcomed them. Long after the doors close and the journey continues, it is the kindness, smiles, and genuine care that remain alive in memory. That is why Nepal’s hotels are not defined by walls or rooms, but by the warmth of the souls inside, where hospitality is felt, not just offered, and every guest leaves feeling less like a visitor and more like family.

Nepal’s foreign trade deficit during the first five months of the current fiscal year (mid-July to mid-December) has reached Rs 649.68 billion out of a total foreign trade volume of Rs 882.69 billion.

According to the foreign trade statistics released by the Department of Customs, imports during the review period stood at Rs 766.18 billion, while exports totaled Rs 116.50 billion. Compared to the same period last fiscal year, imports increased by 15.83 percent and exports rose significantly by 58.17 percent, the Department reported.

The country recorded a trade deficit of Rs 339.02 billion with India over the past five months. Imports from India amounted to Rs 434.06 billion, whereas exports were valued at Rs 95.04 billion. Likewise, imports from another neighboring country China totaled Rs 163.73 billion, while exports to that country were limited to Rs 466.8 million.

Romania emerged as the leading country in terms of Nepal’s trade surplus, with a profit of Rs 63.4 million. Nepal also recorded trade surpluses with Sweden and Iraq during the same period.

In terms of imports, petroleum products accounted for the largest share. 

The country imported diesel worth Rs 45.6 billion, petrol worth Rs 27.33 billion, and cooking gas valued at Rs 22.39 billion. 

Other major imports included smartphones worth Rs 19.13 billion, crude soybean oil amounting to Rs 46.97 billion, and iron products valued at Rs 21.84 billion.

Soybean oil was the single largest import item, totaling Rs 46.55 billion. 

In addition, Nepal imported large cardamom worth Rs 5.53 billion, carpets valued at Rs 4.13 billion, and sunflower oil worth Rs 3.73 billion during the review period.

The Trump administration is recalling nearly 30 career diplomats from ambassadorial and other senior embassy posts as it moves to reshape the U.S. diplomatic posture abroad with personnel deemed fully supportive of President Donald Trump’s “America First” priorities, according to Associate Press. 

Africa is the continent most affected by the removals, with ambassadors from 13 countries being removed: Burundi, Cameroon, Cape Verde, Gabon, Côte d’Ivoire, Madagascar, Mauritius, Niger, Nigeria, Rwanda, Senegal, Somalia and Uganda, according to Politico. 

Second is the Asia-Pacific region, with ambassadorial changes coming to six countries: Fiji, Laos, the Marshall Islands, Papua New Guinea, the Philippines and Vietnam affected.

Four countries in Europe (Armenia, Macedonia, Montenegro and Slovakia) are affected; as are two each in the Middle East (Algeria and Egypt); South Asia (Nepal and Sri Lanka); and the western hemisphere (Guatemala and Suriname), according to Politico. 

Nepal hosted a special side event at the United Nations Headquarters in New York to mark the second World Meditation Day. 

The event, titled "Awakening the Mind: Pathways to Peace, Health, and Harmony," was co-hosted by the Permanent Mission of Nepal to the UN and the Jeevan Vigyan Foundation. 

During the event that took place on December 19 at the UN Headquarters, ahead of the official World Meditation Day, Representatives LP Bhanu Sharma and Ramesh Prasad Nepal of the Jeevan Vigyan Foundation represented Nepal and spoke about how Jeevan Vigyan or the science of living helps promote peace and harmony through yoga and meditation.

Speakers highlighted the role of meditation in fostering inner peace, strengthening emotional well-being, and developing conscious leadership amidst global challenges.

The event was part of the UN's observance of World Meditation Day, which was officially declared through a resolution by the UN General Assembly on December 6, 2024. Nepal was part of the core group of countries, along with India, Sri Lanka, Andorra, and Mexico that worked to finalize this resolution.

The event was attended by United Nations Under-Secretary-General Atul Khare, Nepali Permanent Representative to the United Nations Lok Bahadur Thapa, and Jeevan Vigyan Foundation President Devi Guruma, among others, representatives from various countries and communities.

A press release issued by the foundation states that the event has helped spread spiritual awareness around the world, including yoga, meditation, and samadhi, the roots of which are based in ancient Nepal.

A Cambodia–Nepal B2B Business Interaction Program 2026 is set to be held with the aim of strengthening trade, investment and cultural cooperation between Nepal and Cambodia.

The event to be held in Cambodia in the last week of Poush month will be organized by Cambodia's Juba Supplies and Maintenance Company Limited (JSM Cambodia), while Nepal's Season Media is said to manage the event.

The program will include the participation of business representatives from Nepal such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce, as well as from the tourism, aviation, travel and tourism, manufacturing, culture, technology, and import-export sectors.

Ram Prasad Padhya, the program coordinator, said that representatives from the Cambodia Chamber of Commerce, Tourism and Hospitality Association, aviation company, private investment groups, business organisations, and the cultural-creative sectors will participate from Cambodia.

According to him, it will also provide a platform for networking and sharing experiences for businesspeople, artists, entrepreneurs, and innovators from Asian countries.

Lal Singh Khadka, former president of the Non-Resident Nepali Association Cambodia and a businessman, said it is expected that the bilateral friendship, cultural diplomacy and tourism promotion between Nepal and Cambodia will be further strengthened through this programme.

Investment and business meetings, sectoral discussions, business networking and policy dialogues will be conducted between Nepali and Cambodian businesspeople as part of the program.

Similarly, opportunities for joint investment and collaboration will be identified in high-potential sectors such as tourism and hospitality, aviation, travel services, agriculture, manufacturing, real estate, cultural and creative industries, and digital innovation.

As a special attraction of the program, outstanding entrepreneurs, industrialists and institutions contributing to economic development, innovation and bilateral cooperation between the two countries will be honoured with the 'International Excellence Award'.

This award ceremony will honour individuals and organizations from Cambodia and other Asian countries who have made exceptional contributions in various fields such as industry, arts, innovation, tourism, education, and health.

Program Manager Pradeep Raj Onta said that the International Excellence Award is being organized to recognize the contributions of professional and institutional personalities across Asian countries and to promote international cooperation and cultural exchange.

Businessman Khadka stated that the International Trade Conference 2026 programme serves not only as a business meeting but also as an important platform for establishing long-term partnerships, expanding people-to-people relations, and building a foundation for shared prosperity between the two countries.

It is believed that the program will make a significant contribution to promoting bilateral trade, tourism development, and investment expansion.

The government has expressed a firm commitment to launching a campaign against corruption so that integrity and good governance would be established.

Secretary at the Office of the Prime Minister and Council of Ministers, Gobinda Bahadur Karkee, on Tuesday, made such commitment while addressing a session under the 11th Session of the Conference of States Parties to the UN Convention against Corruption (UNCAC) themed 'Shaping Tomorrow’s Integrity' in Doha, Qatar.

In his statement, Secretary Karkee informed that the current government in Nepal had adopted a strict zero-tolerance policy against corruption, and pursued robust legal, administrative and institutional reforms. 

He highlighted the efforts and commitments of the interim government formed following the historic public movement aimed at promoting good governance and controlling corruption. 

Secretary Karkee shared before the global community about the measures taken by the Nepal government in criminalizing bribery, abuse of authority, illicit enrichment, money laundering, and related offences in line with UNCAC.

The leader of the Nepali delegation reaffirmed Nepal’s unwavering commitment to the UNCAC, and shed light on the obligations of the Financial Action Task Force (FATF) Action Plan, and the Second National Strategy and Action Plan against Corruption being finalized.

The conference is considered the world’s largest gathering dedicated to combating corruption. It began on Tuesday.

The nationwide tiger census, conducted once every four years, officially commenced today. 

The launch was marked by a formal inaugural program held in Sauraha, Chitwan.

The census is being led by the Department of National Parks and Wildlife Conservation (DNPWC) under the Ministry of Forests and Environment, in coordination with the Department of Forests and Land Conservation. The National Trust for Nature Conservation (NTNC), World Wide Fund for Nature (WWF) Nepal, and the Geological Society of Nepal are providing technical and logistical support.

The tiger count is being carried out with the assistance of the Nepal Army, Buffer Zone and Community Forest Users’ Committees, it is said. 

According to the DNPWC, the census is expected to be completed within two and a half to three months, with the nationwide mobilization of 25 technical personnel.

DNPWC Director General Buddi Sagar Paudel stated that 1,100 advanced camera traps are being installed across tiger habitats. 

The tiger population will be estimated through the analysis of photographic captures of the species.

An estimated budget of approximately Rs 30 million is expected to cover the cost of the census, covering the mobilization of human resources, management of memory cards, tents, sleeping bags, and other logistical requirements.

The camera traps being used for the census were procured earlier, with each purchased at an around Rs 35,000.

Nepal has started counting the tiger population systematically using automated camera trap since 2009. 

In 2009, there were 121 tigers in Nepal. 

Counting of tigers has been carried out every four years since 2009. 

As per the Tiger Conservation Action Plan, the tiger census was already conducted in 2013, 2018 and 2022. Now, the counting of tigers is being conducted for 2026. 

Nepal has started observing Tiger Day since 2067 BS and counting of tiger population is carried out nation-wide every four years.

The population of tigers was 98 in 1995, 109 in 2000, 126 in 2005, 121 in 2009, 198 in 2013 and 235 in 2018.

To reduce the human-tiger conflict, he suggested providing alternative means of livelihood to the communities living on the fringes of the forests so that they will not have to go into the forests for livelihood and to change the attitude and behavior of the locals towards the wildlife.

18 problematic tigers caged throughout the country

The issue of problematic tigers is also rising in national parks, conservation areas and surrounding regions with a significant increase in the number of tigers.

In particular, tigers that have entered human settlements, attacked humans and domestic animals, or have been found injured are being rescued and kept in enclosures.

Currently, there are 18 troublesome tigers across the country. 

Among them, five are kept in cages at the central zoo in Jawalakhel, Lalitpur, seven in Chitwan National Park, four in Bardia National Park, and one each in Banke and Parsa National Parks. 

The government has been spending a large amount annually on the daily feeding, care, treatment, and other management of such tigers.

According to the latest figures in 2025, the number of tigers in the world has increased to 5,357. 

Among them, the highest number is in India with 3,167, followed by Russia with 750, Indonesia with 400, Nepal with 355, Thailand with 189, Bhutan with 151, Malaysia with 150, Bangladesh with 146, Myanmar with 22, China with 20, Vietnam with five, and Laos with two tigers.

The Embassy of the Republic of Korea in Nepal, in collaboration with the Independent Power Producers’ Association Nepal (IPPAN), organized the Nepal–Korea Energy Cooperation Seminar in Kathmandu on Monday.

This is the first time that such event was held in Nepal to promote private-sector cooperation in the energy sector.

Addressing the seminar as chief guest, Chiranjeewee Chataut, Secretary at the Ministry of Energy, Water Resources and Irrigation, said Nepal seeks long-term partnerships with Korean investors, particularly in hydropower and energy development.

He noted that Nepal and South Korea have maintained economic cooperation through trade agreements, joint ventures, labour collaboration and resource sharing, and expressed hope for increased Korean investment in Nepal’s energy, water resources and irrigation sectors.

Ambassador of the Republic of Korea to Nepal Tae-Young Park said the Korean government has supported Nepal’s development for more than five decades, including the construction of three hydropower projects with Korean financing.

Highlighting strong potential for bilateral cooperation in energy, he said the seminar provided a platform for companies from both countries to explore future collaborative projects.

The embassy also distributed a directory of Korean companies operating in the hydropower sector.

The seminar was organized with an aim to strengthen collaboration with private energy producers and attract Korean investment.

Former government secretary Madhu Prasad Bhetuwal, in his presentation, outlined investment opportunities in hydropower generation and transmission infrastructure, along with government policies in the sector.

About 150 participants, including government officials, media representatives, hydropower developers from Nepal and South Korea, officials from KOTRA New Delhi, and IPPAN members, were present on the occasion. 

Foreign Secretary Amrit Kumar Rai and Ambassador of Switzerland to Nepal Danielle have jointly unveiled a commemorative logo at Ministry of Foreign Affairs to mark the 70^thanniversary of diplomatic relations between two countries.  

The logo will be used throughout 2026 by Embassy of Switzerland in Kathmandu and the Embassy of Nepal in Geneva on various occasions to celebrate and highlight the enduring friendship between the two countries. Nepal and Switzerland diplomatic relations in November 1996. 

Sri Lankan Ambassador to Nepal Ruwanthi Delpitiya has held a meeting with a delegation from the Nepal Sri Lanka Chamber of Commerce and Industry (NSCCI), led by the President Vijay Shrestha.

The meeting focused on enhancing trade relations, exploring avenues to promote two-way tourism and new trade opportunities and fostering mutual growth between Sri Lanka and Nepal, according to the Embassy.

Commercial Officer Bibek Wosti delivered a presentation on Sri Lanka Expo 2026 outlining the event prospects.

The discussions emphasized ways to further develop bilateral trade, enhancing tourism collaboration and highlighted the potential for collaboration in upcoming trade initiatives, including participation in Sri Lanka Expo 2026.

Germany and Nepal on December 5 marked 50 years of technical cooperation, bringing together government partners, development stakeholders, and longstanding collaborators at the GIZ premises in Khumaltar. Under the theme “Woven Through Time, Shaping Tomorrow Together”, the event highlighted the milestones of a partnership that began with Bhaktapur’s heritage preservation in the early 1970s, expanded through GIZ’s work in infrastructure and urban development, industrial and entrepreneurial development, agriculture and forest management, peace building and conflict transformation, and post-earthquake reconstruction, and has now grown into one of Nepal’s longest-standing international collaborations in energy, health and sustainable economic development.

Over the years, German Development Cooperation has evolved into several organizations – GIZ, which is celebrating its 50 years of technical cooperation in Nepal today, KfW Development Bank, which is a German Financial Cooperation, and PTB, supporting quality assurance across sectors. Each organization brings its own expertise, but all share one approach: a partnership built on mutual respect, collaboration, and shared progress in Nepal.

Today, Germany-Nepal technical cooperation is closely aligned with Nepal’s national priorities and supports its regional and global commitments. The 50-year milestone underscores a partnership that is both long-standing and forward-looking.

The chief guest, Minister of Finance and Federal Affairs and General Administration Mr. Rameshwor Prasad Khanal, highlighted the significance of the 50-year partnership between Nepal and GIZ, describing it as a story of trust, cooperation, and shared aspirations. He stated, “It is a great privilege for me, on behalf of the Government of Nepal, to join in celebrating 50 years of GIZ’s dedicated service to our country. This milestone is evidence of what long-term cooperation, mutual respect, and a shared vision can achieve.”

Reflecting on GIZ’s contributions over the decades, the Minister noted, “GIZ has been more than a development agency; it has been a committed partner in Nepal’s pursuit of sustainable growth, social inclusion, and the well-being of our people.” The Minister called for deeper future collaboration in renewable energy, public health, decentralization, sustainable infrastructure, inclusive economic growth, and improved revenue systems.

The Minister concluded with a message of appreciation and commitment on behalf of the Government of Nepal, " I express our deepest gratitude to GIZ and our German partners. Let this golden jubilee be a renewed beginning, a call to collaboration, shared purpose, and continued progress toward a greener, healthier, and more equitable Nepal.”

In his address, His Excellency Udo Volz, the German Ambassador, reflected on the origins of the partnership with the restoration of Bhaktapur, saying, “A commitment that meant: your heritage matters, and we will help you preserve it.” He underlined where the past 50 years have taken this cooperation since then: “What started with restoring temples now provides digital solutions. What began with preserving the past now includes preparing for the future.”

Ms. Paulina Campos Monteros, Country Representative, GIZ Nepal, said: “We see ourselves as facilitators and long-term partners, bringing technical expertise and practical solutions, developed hand-in-hand with government, civil society, the private sector, and communities. Our role is to connect actors, support innovation, and help turn ideas into systems that last.”

Boosting tourism collaboration between China and Nepal can help strengthen mutual exchanges in various other fields, including economy, trade and culture, bolstering bilateral ties and advancing people-to-people bonds, Nepali experts said.

According to the latest statistics released by the Nepal Tourism Board, or NTB, the Himalayan nation recorded over 1 million foreign tourist arrivals in the first 11 months of 2025. The country welcomed 1,060,269 foreign tourists from January to November, compared with 1,055,520 visitors in the corresponding period last year.

India retained the top spot among the source markets for foreign tourists during the period, followed by the United States, while China ranked third with 86,800 arrivals recorded during the 11 months.

The robust volume of Chinese tourists in Nepal came as 2025 was designated as "Visit Nepal Year in China". The year also marks the 70th anniversary of the establishment of diplomatic ties between the two neighbors.

"It is very important to keep enhancing people-to-people friendship through tourism, art performances, educational cooperation," said Harish Chandra Shah, president of the Nepal China Cultural and Educational Council.

He said Nepal and China enjoy common cultural affinity, social linkages and familial relations, but they also have different, diverse cultures and traditions.

Shah said that efforts have been underway in the recent past to boost cooperation and exchanges between the two sides. Among such initiatives, a conference was held in Kathmandu in May this year to promote collaboration between China and Nepal in the fields of cultural tourism and road-rail transport. The event led to the signing of agreements on tea trade and cultural tourism exchange.

Suresh Man Maharjan, founder and CEO of Himalayan Legends, a tour operator based in Kathmandu, said Nepal has particular charm for Chinese tourists, due to the vast diversity of landscapes as well as a wide range of activities that the landlocked nation offers, including exploring its folk culture and arts, ancient civilization, learning about its exotic flora and fauna, taking part in hiking and trekking, and enjoying adventure sports such as paragliding and river rafting.

Immersive travel

He said apart from the traditional mode of tourism, a new mode of immersive travel has been fostering closer ties. Here, primary and middle school students are offered an opportunity to experience Nepali folk music, or enjoy homestays in Nepal's villages.

"The latter can help young students from China gain an idea of the authentic lifestyle of the local villagers who live at the foot of the Himalayan mountains so they can understand each other's culture and customs," said the Nepali travel expert.

"This new mode of experience-based tours will become increasingly popular in future as participants can actively pursue knowledge about Nepal rather than just go sightseeing."

China and Nepal have enjoyed good connectivity, said experts in the travel industry. Himalaya Airlines, a China-Nepal joint venture based in Kathmandu, has been operating direct flights between Kathmandu, Nepal's capital city, and Lhasa, the capital city of China's Xizang autonomous region, and between Kathmandu and Southwest China's Chongqing.

Earlier this year, the carrier started the first-ever direct commercial flights between Lhasa and Pokhara, Nepal's second-largest city and a popular tourist attraction.

Prakash Pun, a tourism promoter in Hong Kong for Nepal's Ministry of Culture, Tourism and Civil Aviation, said that tourism can help bridge the gap or narrow differences between people and cultures.

"It will lead to more frequent commercial activities and diplomatic exchanges between the two sides," he said. Source: China Daily

The Embassy of India in Nepal, in collaboration with the Lumbini Development Trust and Lumbini Buddhist University, organized the third edition of the India-Nepal Cultural Festival in Lumbini on Monday.

Krishna Bahadur Gharti Magar, Governor of Lumbini Province, Munu Mahawar, Additional Secretary (North), Ministry of External Affairs, Government of India, Dr Lharkyal Lama, Vice Chairman of Lumbini Development Trust, and Dr Rakesh Pandey, Deputy Chief of Mission at the Embassy of India in Kathmandu jointly inaugurated the program.

Showcasing the shared cultural heritage and traditions of India and Nepal, the festival highlighted Buddhist history and values, reads a statement issued by the Indian Embassy in Kathmandu. 

The event featured a cultural program, with performances by renowned artists from both countries.

A six-member ICCR troupe led by Sandhya Kunjan Menon Das performed an Odissi dance recital with a Buddhist theme. The evening also included a traditional musical performance by a Nepali band ‘Ghugu Mugu’.

As a part of this festival, an academic seminar titled “India-Nepal Buddhist Heritage: A common Legacy” was organized at the Lumbini Buddhist University in the forenoon of 08 December 2025, according to the statement. 

Eminent Buddhist scholars from India and Nepal discussed the significance of Buddhist heritage in strengthening cultural ties and fostering people-to-people connections between the two countries.

The event underscored the strong cultural and historical bonds between the two nations.

The event drew enthusiastic participation from civil society members, academics, senior monks, and members from the Lumbini Development Trust.

Experts have urged Nepal to urgently shift toward equity-based investment and implement regulatory reforms, warning that ‘free capital’ inflows will begin to disappear after 2026, when the country graduates from the Least Developed Countries (LDCs) category.

“The era of free money ends,” said Calvin St. Juste, Special Envoy for Investment of the Federation of St. Kitts and Nevis, during a high-level roundtable meeting in Kathmandu on Sunday, reads a statement issued by Asian Institute of Diplomacy and International Affairs (AIDIA).

The event, organized by the Asian Institute of Diplomacy and International Affairs (AIDIA), brought together senior banking leaders, media representatives, and economic analysts to assess Nepal’s investment landscape, its credit rating trajectory, and opportunities arising from shifting global financial currents.

 “Grants fade, and loans cannot sustainably replace them. Equity can,” he added.

The Envoy encouraged Nepal not to fear its forthcoming graduation from LDC status, but instead view it as an inflection point.

He argued that Nepal should shift from loans to equity-based financing, particularly in sectors like hydropower where domestic capacity is strong but international capital remains essential.

“Political uncertainty is temporary,” he said, adding that challenging or not, this is the moment to bring investors in.

St. Kitts and Nevis ranked among Nepal’s top five foreign direct investment (FDI) sources in 2020-21 in the Nepal Rastra Bank’s report.

Addressing widespread misconceptions around ‘tax haven’ jurisdictions, speakers emphasized the importance of distinguishing competitive tax policy from illicit financial practices, according to the statement.

Addressing the persistent label of ‘tax haven,’ he urged Nepal to reframe the global narrative. “Tax competitiveness is not illegal,” Calvin said, adding that tax avoidance is legal; tax evasion is not. “Don’t be fearful of designing a system that allows your economy to survive.”

Calvin shared the experience of St. Kitts and Nevis, which endured bankruptcy in 2005 after decades of dependence on the sugar industry. The turning point, he explained, came when the country shifted from reliance on commodities and concessional aid toward attracting FDI and building investment-driven resilience.

Calvin, on the occasion, also highlighted the structural similarities between the two nations. “Nepal is landlocked, whereas St. Kitts is sea-locked,” he said, adding “In different ways, we are both small states whose destinies can be profoundly shaped by external forces.”

Referencing a recent Fitch report, that Nepal got BB- ratings, pointed to growing investor hesitation due to political unpredictability, he said Nepal should take the ratings advantage. “As investors, you cannot control politics, but you can control risk.”

He also urged Nepal to proactively address systemic vulnerabilities.

On the occasion, Ram Kumar Tiwari, CEO of Nepal SBI Bank informed that investors have begun pulling back due to current political uncertainty, the statement further reads.

Likewise, Ananda Jha, CEO of CARE Ratings Nepal Ltd highlighted Nepal’s own structural challenges, including conflicts across multiple regulators – Nepal Rastra Bank (NRB), Securities Board of Nepal (SEBON) and Electricity Regulatory Commission (ERC) – which often lead to fragmented or convenience-driven policy outcomes.

Despite a growing capital market and rising entrepreneurial activity, the country lacks meaningful international access, he said.

Apart from concerns around liquidity scarcity and investor skepticism, participants also pointed to rigid labor policies and a prevailing working culture misaligned with global productivity expectations.

While acknowledging the value of an eight-hour workday, they stressed that technology and Artificial Intelligence (AI) now enable output many times greater without extending hours.

High tax rates – corporate taxes of 20% to 25% and personal taxes up to 39% – are also flagged as deterrents to large-scale investment in Nepal. Participants also questioned the justification for high taxes without visible improvements in public services, underscoring the importance of customer-centric governance.

Sudyumna Prasad Upadhyaya, Sanima GIC CEO, during the discussion highlighted the insurance and reinsurance companies’ performance and profitability in the Caribbean including St Kitts and Nevis.

Nepal and India are holding a meeting of the Joint Working Group (JWG) on Petroleum and Gas Cooperation in New Delhi on Monday. 

Joint Secretary Shiva Ram Pokharel of the Ministry of Industry, Commerce and Supplies will lead the Nepali delegation in the meeting, while a Joint Secretary from the Indian Ministry of Petroleum and Natural Gas will lead the Indian delegation.

The JWG was set up in 2017 to strengthen cooperation between the Nepal Oil Corporation (NOC) and the Indian Oil Corporation Ltd (IOCL) and to widen collaboration in the petroleum and gas sector. 

The meeting comes at a time when Nepal is seeking progress on multiple cross-border energy projects, including the handover of the second phase of the Motihari–Amlekhgunj petroleum pipeline and new initiatives to expand bilateral petroleum infrastructure.

Ministry officials say Nepal will push for the formal handover of the second phase of Motihari–Amlekhgunj petroleum pipeline, which was completed in October last year but has yet to be transferred to Nepal. 

The first phase of the pipeline, handed over in 2018, currently supplies diesel, petrol and kerosene to Amlekhgunj, from where fuel is distributed to major hubs including Kathmandu, Pokhara, Biratnagar and Bhairahawa. The pipeline now accounts for nearly 70% of Nepal’s nationwide fuel imports.

The meeting is also expected to review the status of several projects, including the proposed Siliguri–Charali pipeline, the Charali storage facility and the planned Amlekhgunj–Chitwan pipeline. The storage facility in Chitwan will be built with Nepali investment and Indian technical cooperation.

Officials say Nepal will also push for the Motihari-Sarlahi gas pipeline. It will also brief India on new domestic storage projects under development, including depots being built on NOC land in Rupandehi.

Nepal is additionally exploring the possibility of receiving aviation turbine fuel (ATF) through the cross-border pipeline, according to Indian media reports.

India is the sole supplier of petroleum products for Nepal. NOC currently imports diesel, petrol, kerosene, ATF and liquefied petroleum gas (LPG) from the India Oil Corporation (IOC).

Nepal’s political landscape has been shaped repeatedly by acts of betrayal, and today’s GenZ movement finds itself encircled by similar breaches of trust—both from state institutions and non-state forces. This pattern is not new. Twenty years after the 2006 Second People’s Movement, that abolished the monarchy and established a federal republic, Nepal witnessed another youth-led uprising in Sept 2025, commonly referred to as the “GenZ” movement. The protesters’ core demands centered on ending systemic corruption, addressing mass unemployment, lifting restrictions on social media, holding the state accountable and dismantling entrenched old power structures. While some voices within the movement called for constitutional amendments or a directly-elected prime minister, the demand for immediate elections was not the primary focus.

Nevertheless, in response President Ramchandra Paudel dissolved the House of Representatives, appointed former Chief Justice Sushila Karki as interim prime minister and announced fresh elections within six months. Many observers see this rapid dissolution and election announcement as the latest instance of the state deflecting, rather than addressing, popular demands for systemic change.

Whether this abrupt move constitutes a deliberate strategy to defuse and ultimately neutralize the GenZ youth rebellion remains a critical question that warrants serious national debate.

Whither constitutional legitimacy?

After the government collapsed and Parliament was dissolved, the nation was left without leadership. Holding fresh elections and seeking a new public mandate appeared to be the most legitimate and constitutional way forward. It would have ensured that the interim government remained only a temporary arrangement, functioning strictly within constitutional limits. However, this path was never pursued.

The President should have first explored the possibility of forming a new government from within the existing Parliament, safeguarding constitutional integrity and institutional dignity. The more democratic alternative would have been to respond to the aspirations of the youth, bring their concerns to the floor of Parliament, and open meaningful avenues for their representation and participation in state governance. Nepal has taken such steps before—it is not a distant chapter of history.

Yet, the interpretation of the symbolic burning of ‘parliament’ during the movement as an attack on the institution itself has now become a contentious matter, one that may shape political debates and institutional behaviour far into the future.

Some argue that calling for fresh elections in the midst of a power vacuum is merely an effort to preserve the existing power structure. Others claim that this step does not resolve constitutional deadlocks but stands in direct violation of the constitution. Meanwhile, even as the demand for parliamentary restoration remains under judicial review, the very parties advocating for it are preparing to contest elections scheduled for March 5 next year. This, in effect, suggests that they have dismissed the spirit of the GenZ movement.

For some, elections were presented as a way to absorb the movement’s energy—redirecting youthful activism from the streets into parliamentary politics. Yet this logic contradicts the core of the youth uprising, which never demanded immediate elections. The protests exerted intense pressure on those in power, but following the election declaration, criticism has grown that the President’s decision—taken in the belief that street anger could be channeled into ballot papers—constitutes a profound betrayal of the movement’s purpose. In response, a segment of the youth now questions whether another uprising is needed to secure the goals for which they first took to the streets.

A bid to signal stability

By announcing the election date, the President appears to be projecting a message—both domestically and internationally—that Nepal is moving from instability toward procedural normalcy. Despite the scheduled elections creating an impression of institutional restoration, the conditions for a fair and credible vote are still far from secure. If the elections were to be cancelled under such circumstances, the country could face another crisis, reminiscent of events like prison breakouts and the burning of government buildings during previous unrest.

A limited mandate

The interim administration has been granted only one primary task: to conduct elections. This narrow mandate risks entrenching the same old power structures riddled with corruption. In such an environment, the possibility of the GenZ movement returning to the streets remains high. The interim government itself has repeatedly clarified that its role is not to engineer systemic change, but merely to steer the country back to the constitutional path through elections.

Yet, elections within six months are no cure-all. The challenges ahead are immense. The youth-led uprising has demanded deeper structural reforms—reforms that are currently not being addressed. The President’s decision to withhold authority from the interim government to amend the constitution or initiate institutional restructuring stands in stark contradiction to the spirit of transition. This raises a real risk that elections may simply reopen the door for the old parties to regain power.

There is also constitutional ambiguity regarding the appointment of a prime minister from outside Parliament following its dissolution. Fears persist that those powers granted in the present could be misused in the future.

Trust, reform and inclusion

Nepal is navigating a turbulent period. Institutions are weakened, and public trust in the state is steadily eroding. In such a context, six months is a short window. Rushed elections may favor established political forces rather than fairness or reform. If grievances over unemployment, corruption, exclusion and limited opportunity remain unaddressed, dissatisfaction could resurface even more strongly.

Simply announcing elections and releasing attractive party manifestos cannot restore people’s faith in the existing order. Trust must be rebuilt through visible action. The interim government must prioritise transparency and accountability from day one. Public disclosure of assets—from ministers and top officials to senior policymakers—is essential to reinforce integrity in state leadership.

Sensitive corruption cases must be pursued without delay, and the law must be allowed to act decisively. Only then will citizens feel the beginning of change. Equally crucial is the meaningful inclusion of youth, experts, women, indigenous communities and civil society in candidate selection and electoral rule-making—because inclusive participation is the foundation of genuine democracy.

Before the election day arrives, Nepal needs a broad national dialogue on long-overdue reforms and on the review of vague or disputed constitutional provisions. Such deliberation can set the groundwork for stability, improve governance and gradually rebuild public confidence in the system.