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Unseasonal rains have severely damaged physical infrastructure at Rasuwa and Tatopani, Nepal’s main customs checkpoints with China, leading to significant trade losses. According to the Nepal Himalayan Cross-Border Chamber of Commerce, floods have washed away roads and bridges, stranding imported goods. Around 300 to 400 containers remain stuck at Tatopani, while about 700 are stranded at Kerung. Even when the checkpoints were operational, 40 to 50 customs clearances remained incomplete daily.

Business owners have suffered heavy losses as perishable goods spoiled and items purchased on credit could not be sold on time. With prolonged delays, imported goods became more expensive, directly impacting consumers and reducing market activity. Consequently, businesses did not meet expected sales during the festive season. Additionally, export disruptions have affected national revenue and the livelihoods of workers dependent on the production of export goods. Despite these issues, the government has yet to devise short- or long-term strategies to ensure road connectivity after checkpoint blockages.

Repeatedly, disasters—including the 2015 earthquake and annual heavy rains—have disrupted these vital trade routes. Their geographic vulnerability to landslides and floods exacerbates the problem, with roads deteriorating every rainy season. However, the lack of durable infrastructure forces traders to rely on makeshift roads, posing significant risks. Reflecting on past conditions, former Industry Secretary Purushottam Ojha stated, “This did not happen before, but climate change has intensified floods and landslides. The government must adopt a strategic approach to maintaining supply chains considering climate change impacts.”

Every year, traders face financial losses due to supply delays caused by checkpoint blockages during the monsoon. Ahead of Dashain, they urged the government to invest in sustainable infrastructure, emphasizing the chronic lack of development at northern checkpoints. Nepal has 41 customs offices, of which only 28 to 29 operate regularly. The most rain-affected ones are the Rasuwa Customs Office in Timure, Rasuwa, and the Tatopani Customs Office in Larcha, Sindhupalchowk. According to Customs Department data, Rasuwa accounts for about four percent of Nepal’s total imports annually, while Tatopani handles around three percent. In the current fiscal year, Nepal’s total imports stood at Rs 988.58bn, with Rasuwa accounting for Rs 47.9bn and exports worth Rs 1.66bn. On average, Rasuwa contributes about one percent of Nepal’s total annual exports to China. Meanwhile, Tatopani recorded imports worth Rs 27.25bn in the first seven months of this fiscal year, though no exports have been reported so far.

Despite Tatopani’s significance as Nepal’s primary trade border with China, it perennially faces road infrastructure challenges. Floods and landslides frequently wash away the main road connecting Tatopani, forcing traders to transport goods at great risk. Business owners lament the government’s failure to conduct long-term repairs on the Barabise-Tatopani road. The route’s precarious location along the Bhotekoshi River, flanked by steep mountains, further heightens the risk of road collapses.

This recurring issue has worsened in recent years, especially during major festivals, leaving imported goods stranded for months. Such disruptions challenge the government’s revenue targets while raising business costs. Supply chain delays ultimately burden consumers with inflated prices.

Climate change has intensified extreme weather patterns, leading to increased incidents of floods and landslides that obstruct trade routes. Over the past three to four years, Nepal has experienced heavy rains from the monsoon through the festival season, worsening the situation at northern customs checkpoints. These unnatural floods have repeatedly collapsed roads and bridges, paralyzing trade.

Despite ongoing appeals, traders argue that the government has not prioritized road maintenance at Tatopani. This year, checkpoint blockages caused massive financial losses due to shipment delays. Kamlesh Kumar Agrawal, president of the Nepal Chambers of Commerce, highlighted the dire state of infrastructure, stating, “The northern border lacks proper infrastructure, and the temporary roads and bridges are inadequate due to natural disasters. This adds to traders’ expenses.”

Following a 26-day blockade during Dashain, traders met with the Commerce Minister to demand sustainable infrastructure development. Agrawal noted, “The government never outright rejects business concerns, but bureaucratic delays ultimately shift the burden onto consumers.”

Prime Minister KP Sharma Oli has expressed his hope that the Third Nepal-Japan Friendship Summit-2025 would help further enhancing the bilateral relations between the two countries.

During his meeting with the Japanese delegation that has been here to attend the Summit and Nepali coordinators, at his official residence in Baluwatar today, the Prime Minister said the government-to-government and the people-to-people relations between Nepal and Japan are being expanded to export-import ties as well.

"Nepali have reached Japan for employment. Nepal's buckwheat is available in Japanese market and Nepal imports Golden Trout from Japan. Our friendship is deeper. We have nothing than friendship. Our friendship has blossomed like Sakura. Time demands to take these ties and partnership to a new height with the help of information technology." "Japan has proved that war ends with destruction and the peace leads to development," the Prime Minister said, adding that he wished for global peace.

The Summit (February 26-28) was jointly organised by the Lead Ex Nepal under the Idea Studio Nepal and the Fourth Valley Concierge Corporation. 

Nepal has long struggled after the Covid-19 pandemic to revive its economy. Every economist in Nepal has been involved in answering one question that is “Is Nepal going into recession?”. Formally, recession is a condition where there is a significant decline in economic activities spread across the economy, lasting more than a few months, normally visible in production, employment, and real income. Economists in Nepal have been dealing with this question with ease but are not even concerned about the microeconomic position of the country. 

The Nepal Rastra Bank has been publishing its macroeconomic analysis, but to date, Nepal lacks a strong microeconomic analysis. Microeconomics is social science, a fundamental department of economics that studies the implications of incentives and decisions and how that affects the utilization and distribution of resources on an individual level.

Nepal has adopted a free-market economy where there is no government intervention. The economic condition of Nepal has been solely reliant on the service market, product market, and remittances. The service market contributes about 55.36 percent of the GDP of Nepal. But only about 11 percent of Nepal’s GDP is dependent upon the production market. Still, agriculture is the top occupation in Nepal about 65.7 percent of the population are farmers. Though these are just numbering; the economy of Nepal is dependent upon the average population and their purchasing habits and behaviors, and Nepal still does not have these microeconomic analyses. 

Nepal has a grand loophole in micro-level economics, for instance, there is no analysis done in Nepal that shows the purchasing habits of people. It is people who set the standards of demand and supply in every free market economy. Without knowing individual habits and how they spend their hard on money, the market analysis is reluctant to a failure.  Nepal’s micro landscape indeed faces significant challenges, practically in understanding consumer behavior and purchasing habits. Without a clear understanding of how people allocate resources, and the factors impacting the spending decisions, economic policies will always go into a static failure. Businesses established in Nepal have more microdata of consumers than the authoritative body in Nepal.

Nepal lacks a systemic and comprehensive data collection mechanism at a microeconomic level. No government mechanism dwells with mechanisms to track consumer spending patterns, income distribution, or the saving habits of people. This absence of data makes Nepal’s economy unpredictable, and the market movement is fluctuant. The prominent part of Nepal’s economy is informal, with high remittance flow, and the hundi system in Nepal has led to a rapid flow of cash in Nepal making the purchasing power of people high. Many transactions occur outside the formal banking system, and small businesses have no financial records. Nepal’s market is driven by luxury goods from the foreign market making Nepal lose forex. These two parts have made the economic situation of Nepal arduous, which has not been studied by the government till now officially.

Nepal’s market is trendy, it is driven by foreign-influenced thoughts from social media. Nepal itself being a culturally diverse country tends to have different consumption behaviors geographically. There is no localized data so it is difficult to understand these variations and tailor economic policies or business strategies accordingly for economic growth. 

To allocate and address this problem economists in Nepal must now focus more on the micro-economic analysis than the macro part of the economy. The government must also collaborate with private sector stakeholders and must invest in the formation of a strong data collection system. They must focus on providing household surveys, consumer spending trackers, and digital payment analytics, to better understand purchasing habits.  Policies should be made targeting the formalization of the economy, the government must track and band the hundi system. Which is leading to high purchasing power and disbalancing the demand and supply system of the economy. 

Promoting research institutions that focus on microeconomic analysis, utilizing technology like Artificial intelligence to monitor real-time spending patterns through digital payment systems, and conducting cultural and regional studies to understand the unique economic behaviors of diverse communities are essential steps. These measures would provide valuable insights, enabling the development of more effective and targeted economic policies, and ultimately fostering and making the economy of Nepal predictable and robust. 

Municipalities in Nepal stand at a crossroads, facing complex challenges posed by the rapid urbanization the country is witnessing. New towns have emerged to accommodate the nation’s growing urban population while existing ones have expanded rapidly over the last decades. The rapid growth of towns has placed municipalities at the forefront of managing the country’s escalating urbanization challenges, the mismanagement of which can severely impact urban well-being. While the pressure on local governments to address the issues before them is mounting, they remain poorly financed and functionally restrained, risking the perils of haphazard urbanization, the consequences of which bear serious repercussions. 

Local governments in Nepal were entrusted with key responsibilities after the adoption of federalism in 2015, and they now have local health, education, agriculture and several other functions under their remit. They are entitled to receive federal grants, provincial budget transfers and shares from tax collections to support their finances, and can even borrow if required. Uniquely, the country’s municipalities are assuming responsibilities at a time when local governments globally face mounting civic challenges amplified by climate change. This makes Nepal’s federalization process both crucial and delicate, but the agenda remains politically deprioritized and institutionally stalled, and several provisions surrounding federalism fail to be implemented. 

While the dynamics of federalism in the country are in a state of flux, an argument that makes the case for fast-tracking the power transfer to local governments is that delaying this process has high costs. Research shows that countries urgently need to increase municipal investments to sustain civic well-being, and Nepal is no exception. Municipalities need to invest now in establishing planned colonies to curb informal settlements that cause urban congestion. They need to invest now in disaster management measures that wreak havoc in cities every monsoon. They need to commit resources now to urban mobility, pollution management and green infrastructure without which livability in towns will remain compromised and deteriorate over time. These investments need to be made at a speed that matches the rapid urbanization Nepal is witnessing. The World Bank reports that Nepal is the fastest urbanizing country in South Asia, giving the Himalayan nation only a small window to make these time-sensitive investments that will profoundly dictate the quality of life in the country.

Many cities in Nepal are already facing the fallout of failing to act on time, and Kathmandu stands as a prime example. The capital’s congested urban sprawl is the result of poor governance during the 2000s when rapid urbanization overwhelmed the government’s capacity to manage the city’s haphazard growth. Kathmandu’s inadequate road infrastructure, lack of open spaces and inefficient transport networks are direct consequences of years of flawed planning and neglect of municipal priorities. Besides the government’s poor policy foresight, this outcome exposes the general underestimation of municipalities as important actors in driving development, gravely ignoring their vital role in enhancing citizens’ quality of life. Birgunj, Biratnagar and Bhairahwa are other major cities that have struggled to manage their rapid urbanization and now face pressing urban issues like congestion, poor mobility and limited open spaces for recreation. 

Despite the urgency of interventions, local governments are able to do little to address the issues before them. In addition to the federal government's reluctance to devolve key functions, municipalities face critical financing challenges that constrain their ability to act. The budgets of most local governments are already under strain from the extensive responsibilities they manage with limited resources, leaving little room for investment in high-cost urgent interventions. Most local units have limited self-generated revenue and lack the capacity to improve tax administration or diversify income sources. The Intergovernmental Fiscal Arrangement Act 2074, the legislation that outlines financial relationships between three levels of government, allows sub-national governments to secure domestic loans, but municipalities have failed to borrow due to their low creditworthiness. 

International aid and urban climate finance that support municipal investments are in their early stages, and accessing these funds is challenging for Nepal where data on municipality-level financing needs are not robust. Internally, the municipal financing environment isn’t favorable either, with the Town Development Fund being the only specialized municipal lender. Despite receiving support from global development partners, the fund is able to cater to only a fraction of local governments and mostly engages in financing small to medium-scale projects. This combination of limited resources and a nascent borrowing environment creates a substantial funding shortfall for Nepal’s municipalities, leaving them helpless to act. 

It is concerning to see the level of government closest to the citizens, and bearing prime functional responsibilities, face challenges of such magnitude. Even more concerning is the lack of recognition of local governments as powerful entities capable of improving lives at scale through the powers vested in them. While the role of the federal and provincial governments is important for driving national growth, municipalities overwhelmingly fulfill the more immediate needs of daily life that define our day-to-day well-being. Hence, empowering municipalities with resources to invest in pressing municipal needs is imperative. 

The federal government, media, policy professionals, and most importantly, the public, need to view municipalities as important stakeholders whose performance greatly shapes the quality of lives we live. It is of critical importance that local governments are given their due means to perform their functions and make the interventions that are the need of the hour. Failing to do so will leave our cities vulnerable and depress the already poor quality of urban life in many parts of the country. Though reforms are underway, their pace is below the mark and stakeholders’ efforts lack the required enthusiasm. Municipalities are in a race against time, and we must act promptly to use the window of opportunity before the time runs out. 

The author is research fellow at the Nepal Economic Forum

Of late, business incubation support in Nepal’s startup ecosystem has received widespread attention from various sectors. This trend involves startup networks, national and international development agencies, government bodies at all levels, industry associations and other stakeholders. These groups are collectively striving to cultivate entrepreneurial mindsets among young people through initiatives such as startup festivals, competitions, pitch sessions, seed funding opportunities and the like. These initiatives are helping early-stage ventures receive timely support to navigate the risks and challenges of producing market-fit products. 

However, there is a notable absence of academia in the startup ecosystem in this evolving startup landscape, especially in the business incubation support stage, which raises significant concerns. Fostering critical thinking and innovation has traditionally been a core function of academia, yet it seems to struggle to take the lead in the incubation and ideation domain. This prompts reflection on whether the division of responsibilities within this ecosystem is being approached effectively. 

Unintentionally, these practices can lead to blurred roles and responsibilities, creating confusion rather than effectively leveraging individual areas of expertise. Academia’s role should focus on helping students develop critical thinking skills, identify problems and guide them toward the ideation stage. Once ideas are incubated, the industry, development agencies and government bodies can step in to accelerate these concepts, each contributing their unique perspectives and resources. 

Academia in Nepal often lacks a proactive stance toward incubation support programs—some might even label it “non-reactive.” Academic leadership usually appears disconnected from Nepal’s startup ecosystem, yet boldly claims that their educational programs will shape the entrepreneurs of tomorrow. This disconnect highlights an urgent need for academic leadership to rethink and realign their approach to actively contribute to the startup ecosystem. However, does this lack of unawareness and inactivity justify academia relinquishing half of its responsibilities to other entities? In a landscape where NGOs, INGOs and development agencies are leading research efforts and the industry is taking charge of incubation support, one might wonder: where does this leave academia, and how can it assert its relevance in this evolving context? 

Some academicians believe there is a lack of clear distinction between incubation and acceleration, leading to confusion regarding the division of roles. They further suggest that academia should focus less on directly participating in the incubation stage and instead prioritize creating and disseminating knowledge. The primary reason all sectors are heavily engaged in the incubation stage is their desire to build their own pipelines of potential startups for future investment. Accelerators and investors face challenges in finding viable startups to invest in, prompting them to intervene directly at the incubation stage. For example, academic institutions could conduct research to assess whether industry involvement in incubating startups contributes to scalability, evaluate existing policies and analyze their impacts on the startup ecosystem. 

Other academics offer a contrasting perspective that the active involvement of non-academic actors in the incubation stage stems from a lack of trust in the quality of academia’s work and the students it produces. This trust gap reflects a significant disconnect between industry and academia, with industry stepping in due to concerns over the preparedness and capabilities of graduates. 

A thriving entrepreneurial ecosystem, particularly for startups, can only emerge when all actors play to their strengths, understand their roles, adopt a collaborative mindset and share resources with the collective goal of uplifting one another. Currently in Nepal, everyone is competing for the same opportunities without realizing that they are all competing for a single, finite pie rather than working together to expand it. This raises a critical question regarding whether the enthusiastic yet uncoordinated scrambling of activities creates genuine, meaningful and long-lasting impact, or are these efforts merely excuses for allocating CSR budgets and safeguarding established funding networks? 

A leading example of academia and industry collaboration in this domain in our region is from IIT Madras, India, which has successfully created a collaboration model between academia and industry through its incubation cell. This initiative effectively connects research, innovation and entrepreneurship, fostering a sustainable startup ecosystem within South Asia. The model at IIT Madras promotes innovation through dedicated research labs, specialized entrepreneurial courses and programs such as the Nirmaan pre-incubation program, which helps students and researchers refine their ideas, develop prototypes and prepare them for the market. Building on the initial incubation support, the IIT Madras incubation cell partners with industry leaders to offer startups access to funding, mentorship and state-of-the-art facilities. The cell supports ventures across various sectors, including clean energy, healthcare and deep tech. As a result, over 240 startups have been nurtured and raised approximately $145m in funding. Success stories like Ather Energy (an electric scooter company) and Detect Technologies (industrial safety solutions) highlight the program’s impact. The ecosystem has generated over 4,000 jobs, contributing significantly to regional economic growth and social development. 

As a way forward, academic institutions can collaborate with key actors in the startup ecosystem—such as accelerators, government agencies and industry—to co-design a framework that ensures seamless collaboration and value transfer. For instance, academic institutions can actively generate startup ideas, leveraging faculty expertise and internal resources to mentor and refine these concepts. This approach  will also help the industry save valuable time and resources during the incubation support stage. Once the ideas are pitched, accelerators/industries can further develop them using their specialized resources. If the ideas fail to meet real-world market standards, the industry can step into the academic space to provide upskilling and capacity-building opportunities for academia while guiding students on advancing. 

This collaborative framework will not only foster synergy among all stakeholders but also advance the value exchange framework between industry and academia.

The recent inclusion of Nepal in the Financial Action Task Force (FATF) 'gray list' presents both immediate challenges and opportunities for systemic reform for Nepal.

The FATF Plenary that concluded in Paris on Friday decided to include Nepal and Laos on the list. This follows the Asia Pacific Group's mutual evaluation report which identified significant deficiencies in Nepal's anti-money laundering framework.

“In February 2023, Nepal made a high-level political commitment to work with the FATF and Asia Pacific Group (APG) to strengthen the effectiveness of its anti-money laundering and combating the financing of terrorism (AML/CFT) regime,” the FATF said. “Since the adoption of its mutual evaluation report in August 2023, Nepal has made progress on some of the actions recommended in the report, including streamlining mutual legal assistance (MLA) requests and increasing the capabilities of the Financial Information Unit (FIU).”

The APG's third mutual evaluation report of 2023 had highlighted various weaknesses in Nepal's anti-money laundering and counter-terrorism financing controls. FATF has been evaluating the status of any country in controlling money laundering and terrorism financing based on 11 effectiveness indicators and 40 technical indicators. FATF has concluded that Nepal has not been able to demonstrate full effectiveness in any of the 11 prescribed effectiveness standards. According to APG's latest report, Nepal has not been able to achieve full or substantial progress in any of these 11 indicators.

The gray-listing could have far-reaching implications for Nepal's economy. International financial institutions now onwards are likely to implement enhanced due diligence measures for transactions involving Nepali entities. This can affect trade financing and remittance flows which are  very crucial components of Nepal's economy. Likewise, the country might face increased transaction costs and delayed processing times for international transfers. More importantly, this could deter foreign investment at a time when the country is seeking to attract international capital for its development projects. The increased perception of risk could lead to higher borrowing costs and more stringent lending conditions in international markets.

The FATF, however, has provided Nepal with a clear, albeit challenging, pathway to exit the gray list by January 2027. The seven-point action plan encompasses comprehensive reforms, from enhancing public awareness about money laundering risks to strengthening technical compliance in preventing terrorism financing, improving risk-based supervision of commercial banks, higher risk cooperatives, casinos, dealers in precious metals and stones and the real estate sector, and demonstrating identification and sanctioning of hundi operators.

Suman Dahal, the director general of the Department of Money Laundering Investigation, says Nepal has already begun addressing these challenges. “Instead of getting entangled in many small financial crimes, we will now focus on major crimes. We will work by setting thresholds for this purpose," he added. 

The focus appears to be on three critical areas: improving investigative capacity, increasing prosecutions of financial crimes and enhancing asset seizure mechanisms. One noteworthy intervention is the preparation to implement new technological solutions, including KYC software and integrated data management systems. These technological upgrades, if successfully implemented, could significantly improve Nepal's ability to monitor and prevent financial crimes.

The success of Nepal's efforts will largely depend on its ability to translate plans into action. The country's previous experience with the gray list (2010-2014) should provide valuable lessons for implementing sustainable reforms rather than quick fixes.

The real measure of success will not merely be exiting the grey list but establishing a robust, transparent financial system that can effectively prevent and combat financial crimes. This could position Nepal as a more attractive destination for international investment and trade in the long term.

The principle of the separation of powers is a fundamental principle in the structure of modern democratic governance. It divides governmental powers into three branches: the executive, the legislature and the judiciary. The idea behind this separation is to prevent any single branch from accumulating too much power, ensuring a system of checks and balances that maintains democratic integrity and upholds the rule of law. In theory, each branch operates independently and acts as a counterbalance to the others, safeguarding individual freedoms and preventing authoritarian rule.

In the context of Nepal, the separation of powers has faced significant challenges in the post-republic era, particularly after the abolition of the monarchy in 2008. While the country formally transitioned into a republic, the violation of the principle of separation of powers has led to institutional weaknesses and the erosion of democratic values. This article explores the significance of the separation of powers in a democratic system, examines instances of its violation in Nepal’s post-republic era and highlights the consequences for the nation’s democratic health.

Importance of separation of powers

The separation of powers plays a crucial role in preventing the abuse of power by ensuring that no single entity has control over all aspects of governance. By dividing authority among different branches of government, each one serves as a check on the others, protecting citizens’ rights and preventing any one branch from becoming too dominant.

This system also promotes accountability. When power is shared, the legislature can scrutinize the actions of the executive, and the judiciary ensures that laws are applied fairly and impartially. This encourages transparency and makes those in power answerable to the public.

One of the most important aspects of the separation of powers is its role in safeguarding individual freedoms. The judiciary acts as a guardian of constitutional rights, ensuring that neither the executive nor the legislature can infringe upon fundamental freedoms. This protection helps to maintain a free and just society.

Moreover, the separation of powers contributes to the stability of governance. By distributing power among different branches, it helps counterbalance fluctuations or the concentration of power in any one area. This balance prevents instability and ensures that the government remains fair and resilient, even during times of political change.

Violation unabated

Nepal, after the declaration of the republic in 2008, adopted a democratic framework based on the principle of the separation of powers. However, the country’s post-monarchical era has seen numerous violations of this principle, which have had serious repercussions on the health of Nepalese democracy.

Executive overreach, legislative subjugation

One of the primary violations in Nepal’s recent history involves the dominance of the executive branch over the legislature. Since the reemergence of the parliamentary party system in Nepal in 1990, the House of Representatives has been dissolved six times. The fifth dissolution occurred on 20 Dec 2020, when Prime Minister KP Sharma Oli, acting on the recommendation of his cabinet, advised President Bidya Devi Bhandari to dissolve the House. President Bhandari accepted the recommendation the same day and announced that elections would be held in two phases: 30 April and 10 May 2021.

However, on 23 Feb 2021, the Supreme Court ruled that the dissolution of the House of Representatives was unconstitutional and ordered its reinstatement. The court issued a mandamus, directing that the House be convened within 13 days. As a result of the ruling, a session of the House was held on 7 March 2021.

In the sixth instance, on 22 May 2021, Prime Minister Oli again recommended to President Bhandari the dissolution of the House and the scheduling of mid-term elections for 12 Nov and 19 Nov 2021. The President accepted the recommendation, and the House of Representatives was dissolved once again, with the election dates announced accordingly.

Impeachment

In Feb 2021, Nepal’s ruling parties filed an impeachment motion against Chief Justice Cholendra Shumsher Rana, making him the second chief justice in the country’s history to face such a motion, following Sushila Karki in 2017. At the time, the Nepali Congress, the CPN (Maoist Center) and CPN (Unified Socialist) supported the motion against Rana, with Sher Bahadur Deuba as prime minister. The motion against Karki, filed in 2017, was led by Congress lawmaker Min Bahadur Bishwakarma, while the current motion against Rana was proposed by key figures from the ruling parties.

Karki’s impeachment led to her suspension and Gopal Parajuli temporarily taking over, with Rana later staying the motion. After Parajuli’s resignation, Rana became chief justice in 2019. Now, almost five years later, Rana faces his own impeachment motion, primarily due to accusations of corruption, misconduct and failure to perform his duties.

Consequences

When one branch of government begins encroaching on the others, it weakens the very foundation of democratic institutions. The independence and effectiveness of these institutions are compromised, leading to a loss of public trust in the democratic process. Over time, this erosion of faith increases the risk of authoritarianism taking root.

In Nepal, the manipulation of the separation of powers has contributed to political instability. Political parties often use state institutions to consolidate their own power, which has led to ongoing factionalism and conflict. This pattern is evident in the frequent changes in government leadership and the breakdown of the political system, leaving the country in a state of uncertainty.

For the people of Nepal, this constant political drama has led to growing disillusionment. The disregard for constitutional principles has made citizens skeptical of the political process, which in turn has resulted in lower voter participation. This disillusionment weakens the democratic process and erodes public support for democratic governance.

The lack of independence in the judiciary has further exacerbated this situation. When the legal system is not allowed to operate free from political influence, citizens lose confidence in it. Corruption, bias and the absence of fair justice create a culture of impunity, where political interests subvert the rule of law and undermine justice for all.

Conclusion

The separation of powers is essential in maintaining a healthy and functioning democracy. It ensures that power is not concentrated in the hands of one branch of government and that each branch can check the excesses of the others. Nepal’s post-republic era has been marked by several violations of this principle, leading to political instability, diminished trust in democratic institutions and public disillusionment with governance.

To restore the integrity of Nepal’s democracy, it is crucial to uphold the separation of powers and strengthen the independence of each branch of the state. Without this, the nation risks further undermining its democratic progress and succumbing to authoritarian tendencies. Only through respect for the separation of powers can Nepal ensure a more accountable, transparent and vibrant democracy for future generations.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said the government would get rid of 'grey list' within in the set timeframe.

Finance Minister Paudel said it after the Financial Action Taskforce (FATF) included Nepal in the 'grey list'.

"We faced this situation for our failure to meet the criteria in the set time," he admitted, while expressing hope that Nepal would be able to get rid of the 'grey list' by forwarding effective activities to meet the criteria set in the Action Plan by the recent Paris meeting of FATF.

FATF is the global money laundering and terrorist financing watchdog. It sets international criteria that aim to prevent these illegal activities and the harms they cause. 

The UK Government and the British Embassy in Kathmandu hosted the UK-Nepal Business Forum on Tuesday in collaboration with the Government of Nepal, the British Council, and the Nepal-Britain Chamber of Commerce and Industry. The event aimed to strengthen the UK-Nepal economic partnership, enhance trade and investment opportunities, promote inclusive economic development, and expand business-to-business connections.

The program covered topics such as ‘Unpacking Nepal: Market Opportunities for UK Businesses,’ ‘Business Economic Environment for Growth,’ ‘The Benefits of Transnational Education: Opportunities for Nepal,’ and ‘Showcasing the UK’s Export Excellence: Opportunities for Nepal’s Priority Sectors.’

The event featured four panel discussions with Nepali policymakers, private sector leaders, development partners, the diaspora, and thought leaders. Notable attendees included Sushil Gyewali, CEO of the Investment Board of Nepal; Habib Yousuf, Regional Director at British International Investment (UK); Bhawani Rana, Former President of FNCCI; Petra Lenihan, Head of Team South Asia at the Department for Business and Trade (UK); and other experts.

Rob Fenn, the British Ambassador to Nepal, stated, “This facility from British International Investment reflects the UK’s commitment to sustainable economic development in Nepal, benefiting households and businesses throughout the region.”

The session on ‘The Benefits of Transnational Education (TNE): Opportunities for Nepal’ was moderated by Sandeepa Sahay, with panelists Rejina Maskey, Richard Keogh, Shannon Stowers, and Samir Thapa. This session explored the current landscape of higher education in Nepal, including TNE, highlighted opportunities for growth, and identified key areas for quality assurance to enhance educational outcomes.

During the discussion, the panel addressed how TNE could reduce brain drain and foster innovation in Nepal. 

Thapa, Chairperson and Founder Principal of Silver Mountain School of Hotel Management, emphasized, “There is no compromise on the quality of education, as we strive to maintain the same standards offered by universities abroad. Our directive is clear: until we obtain Quality Assurance Accreditation (QAA) from the respective country where the university is based, we are not authorized to run any programs or grant approvals.”

Keogh, Deputy Vice-chancellor at the University of Roehampton, said, “We are committed to reversing the brain drain, which is often linked to limited job opportunities post-graduation. One of our key initiatives is to provide professional experience alongside a strong academic curriculum and extracurricular activities. We invite industry professionals as guest speakers to engage with students and bridge the gap between education and employment.”

He added, “Additionally, we recognize the growing global trend where high-level skilled jobs no longer always require a master’s degree. There are increasing opportunities in sub-degree qualifications, allowing graduates to enter the workforce with specialized skills sooner.”

Stowers, Head of International Policy and Engagement at QAA (UK), stated, “This program focuses on exploring various TNE provisions across different countries, examining active practices, and identifying areas for enhancement. It offers valuable insights and learnings from a diverse range of universities worldwide, ensuring that the programs delivered remain relevant and impactful.”

The second Financial Action Task Force (FATF) Plenary under the two-year Mexican presidency began in Paris on Wednesday. Delegates from 200 members of the Global Network and observer organizations, including the International Monetary Fund, the United Nations, the World Bank, INTERPOL and the Egmont Group of Financial Intelligence Units are participating in the three-day plenary. According to FATF, the plenary will discuss important developments in combating illicit finance that fuels global crime.

It will also discuss strengthening financial inclusion through risk-based implementation of FATF Standards. Delegates will also review progress made by jurisdictions identified as presenting risks to the financial system.

Finance Ministry sources say the plenary is expected to decide whether to place Nepal on the gray list—an informal designation for countries with strategic deficiencies in combating money-laundering and terrorist financing.

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said last month that Nepal has laid a strong foundation to exit the gray list if listed. “Nepal is currently in the listing phase after completing its mutual evaluation period. Even if we are listed, we have laid a strong foundation to exit the gray list,” Adhikari said during Anti-money Laundering Day celebrations in Kathmandu on Jan 27.

Officials say the FATF, an intergovernmental body that sets global standards for anti-money laundering (AML) and counter-terrorist financing (CFT), has expressed concerns over Nepal’s slow progress in key areas. While Nepal has made legislative reforms, international observers have criticized delays in investigations, prosecutions and enforcement of AML/CFT measures.

Nepal’s mutual evaluation process, which began in June 2022, identified several gaps in the country’s AML/CFT framework. A team from the Asia/Pacific Group on Money Laundering (APG), comprising experts from Australia, Bangladesh, Fiji, Malaysia, New Zealand, the Philippines and Sri Lanka, made 11 immediate recommendations for improvement. Officials acknowledge that progress in implementing these reforms has been unsatisfactory.

Nepal was previously on the gray list from 2008 to 2014 but was removed after establishing legal and institutional frameworks. Deputy Prime Minister and Finance Minister Bishnu Paudel also said Nepal’s efforts to address money-laundering risks were insufficient. “Efforts have been made to avoid being pushed into a high-risk or monitored category, but we have not been as effective as required,” he said during anti-money laundering day celebrations.

The government had made preparations to amend over a dozen laws through an ordinance in Oct 2022, targeting key legislation including the Money-laundering Prevention Act, Cooperative Act, Tourism Act, Nepal Penal Code and Foreign Investment and Technology Transfer Act. However, the President refused to issue the ordinance.

Parliament passed the anti-money laundering bill only in Feb 2023, amending several laws to align with international standards. Despite these efforts, experts say challenges remain in addressing issues such as proxy ownership of assets, underreporting of property values and large cash transactions. Home Ministry spokesperson Ram Chandra Tiwari said in a press meet on Monday that the ministry has failed to complete two critical tasks: developing software for targeted financial sanctions to reduce terrorist financing risks and regulating non-profit organizations. The FATF will announce the outcomes of the Plenary meeting on Friday.

Days after Elon Musk, who is heading the US Department of Government Efficiency, announced a series of expenditures, including $39m allocated for Nepal, US President Donald Trump backed him saying that support to Nepal’s fiscal federalism is a fraud. 

The Elon Musk-led Department of Government Efficiency (DOGE) took to X on Sunday to announce that it has canceled the funding to be received by Nepal among several other nations. Nepal was set to receive $20m for fiscal federalism and $19m for biodiversity conservation. These funds were among several global aid allocations that have now been scrapped, including $40m for gender equality programs and $47m for improving learning outcomes in Asia. US President Donald Trump painted Elon Musk as his enforcer-in-chief Tuesday, hailing the tech billionaire’s zeal in implementing the blizzard of executive orders the president has issued since returning to office. In a joint interview broadcast on Fox News, the two men spent substantial time singing the other’s praises and dismissing concerns that Trump is overstepping his executive powers.

Trump has signed scores of executive directives in the past three weeks, many of which have been challenged in the courts as potentially unconstitutional. Billionaire Musk, who was Trump’s top donor during his 2024 presidential campaign, was tasked with leading the newly-created Department of Government Efficiency (DOGE), with the declared goal of rooting out “waste, fraud and abuse” in federal spending.

“One of the biggest functions of the DOGE team is just making sure that the presidential executive orders are actually carried out,” Musk told Fox News. In the interview, Trump insisted his policies–including a wholesale onslaught on federal institutions–should be implemented without delay and said Musk was instrumental in pushing them forward.

“You write an executive order and you think it’s done, you send it out, it doesn’t get done. It doesn’t get implemented,” Trump said. He added that Musk and the DOGE team have now become an enforcement mechanism within the federal bureaucracy to enact his administration’s agenda without anyone standing in their way—or else risk losing their jobs. And some guy that maybe didn’t want to do it, all of a sudden, he’s signing it,” Trump said.

Habeas corpus, popularly called the “great writ of liberty,” is one of the fundamental laws that guarantee individuals protection of personal freedom from any unlawful or arbitrary detention. It is an essential instrument of doing justice according to the rule of law and thus the cornerstone of every constitutional democracy in the world, including Nepal. The phrase originates from the Latin “habeas corpus,” which means literally, “you shall have the body.” By this law, a person who has been unlawfully detained or imprisoned may have recourse to a court of law to challenge that detention. Keeping all the constitutional and other legal provisions provided for the protection of personal liberty in Nepal in mind, habeas corpus is a prominent instrument in the dispensation of justice, human rights, and the accountability of state organs.  

Nepal, as a constitutional democracy, has solemnly ethical considerations of habeas corpus incorporated into the legal arrangement by virtue of Article 133 of the Constitution of Nepal, 2015. Under this provision, every person shall have the right to present a habeas corpus petition before the Supreme Court or the High Courts against illegal detention. 

The primary aim of the doctrine is to protect any authority, be it the government or some private entity, from infringing upon the freedom of the individual without legally acceptable justification. Habeas corpus has always been viewed by the courts in Nepal as a protection against arbitrary detention so that no one is sent to detention unlawfully.

Next to life, personal liberty is perhaps the highest right appreciated by mankind. Article 3 of the 1948 Universal Declaration of Human Rights states: “Everyone has the right to life, liberty and security of person,” which basically underscores this personal liberty. Article 9 of the International Covenant on Civil and Political Rights (ICCPR), to which Nepal is a party, states, “No one shall be subjected to arbitrary arrest or detention” and goes on to say that “anyone who is arrested shall be informed, at the time of arrest, of the reasons for his arrest and shall be promptly informed of any charges against him.” These provisions and many others have formed part of Nepal’s law and thus come under the obligations of the state to respect and enforce human rights. The Constitution of Nepal goes a further step in protection of personal liberties. It grants freedom under article 17: “No person shall be deprived of personal liberty without the due process of law.” Article 20 seeks to do justice requiring that persons arrested are informed of the reasons for their arrest and are able to access legal counsel and be produced before a judicial authority within 24 hours of their detention. In addition, article 22 specifically prohibits torture and inhumane treatment and allows for access to remedies for the victims of such wrongful acts. These protections under the constitution find additional expression in the National Penal Code of 2017 making acts such as unlawful detention, secret detention or detention under inhumane conditions punishable. Provisions for compensation to the victims of unlawful imprisonment are proof enough of how Nepal stands for the violations of personal liberty.

Nepal’s habeas corpus mechanism suffers from various hurdles for effective implementation despite these solid legal frameworks. Arbitrary detention has continued to be a concern in times of political unrest or emergencies. The authorities have consequences on dissent and political opponents using preventive detentions as constitutional law in Article 23 allows whereas these purported preventive detentions have not always been justified by evidence or due process constituting a clear violation of the fundamental rights of the individuals. The situation worsened because of the general unawareness of the citizenry about such rights and the habeas corpus mechanism. Many persons more so in rural or marginalized communities- are unaware of their right to seek justice for unlawful detention or have no means to access relevant legal aid. Another major undermining factor is delay in the judiciary. Though the Constitution prescribes that habeas corpus be acted upon without delay, inefficiency effectively causes prolonged detention without recourse. Limited judicial resources, backlogged courts, and procedural complexity would have all had a hand in the delays, thus limiting, if not incapacitating, the efficacy of habeas corpus as a remedy. There have also been recorded incidents of noncompliance of the judicial orders by law enforcement agencies, which further testify to the need for mechanisms that would enhance accountability for and adherence to the rule of law.

The challenges can be addressed by proposing several solutions. The foremost among these solutions relates to public-awareness campaigns geared towards educating the citizenry about their constitutional rights, especially the remedy of habeas corpus against unlawful detention. Legal aid services must extend in rural and economically backward areas to ensure that a person of any economic status has access to justice. Investment by the government to strengthen the judiciary with more judges, court infrastructure, and procedures ensuring the speedy hearing of cases is recommended. In addition to this, there should also be an implementable oversight mechanism to monitor law enforcement agencies and prevent their misuse. Training for policemen and other authorities must promote understanding and respect for human rights and the rule of law. Thus, independent bodies also have to be set up for the investigation of complaints regarding unlawful detention and ensure accountability for violations. In addition, a judiciary needs active enforcement of its own orders and punishment against the non-obedience so that the dignity of the system itself is upheld. 

Consequently, the most vexing problem is to strike that proper balance between civil liberty and national security. In case of disturbances to public order or national sovereignty, preventive detention can be justified by authorities under Article 23 of the Constitution. Such measures should be resorted to only in very exceptional circumstances, and when so warranted, the law must ensure proportionality and due process in their application. Clear guidelines defining the extent of powers that can be exercised in the context of preventive detention will mitigate the risk of misuse of those powers, while an independent and regular system of judicial review should be maintained. For constitutional provisions, legislative framework, and compliance with international human rights standards are indicators of the commitment of the state of Nepal to uphold the rule of law and personal liberty. The realization of these safeguards can only be through the vibrant synergy of government, judiciary, civil society, and the citizens of Nepal. Only collective vigilance will make the promise of habeas corpus as an instrument for justice and the curtailing of abuse a reality.

The 10^th Edition of Nepal-Pakistan Friendship T20 Cricket Tournament concluded on Sunday.

The event commenced on February 8, 2025 and 12 teams of various clubs participated in the tournament.

Dhruba Acharya, Vice President of National Sports Council of Nepal, graced the ceremony as Chief Guest and awarded the trophy to the winning team Himalayan Cricket Academy. Whereas Angles Sports Academy won the runners-up trophy.

Special guests included Noha Hamdy Ahmed Elgebaly, Ambassador of Egypt to Nepal, Chen Song, Ambassador of China to Nepal, Pema Gyamtsho, Director General, ICIMOD, Humayun Kabir, Charge d’Affaires, Bangladesh Embassy,  Yu Pengcheng, Director Political & Media, China Embassy, Surendra Raj Regmi, CEO Global IME Bank, Manju Ratna Sakya, President Nepal-Pakistan Friendship and Cultural Association (NPFCA), Rabi Raj Shahi, Chairperson, K2 Everest Society.

The event was also attended by media fraternity and friends of Pakistan, representatives of civil society, Pakistani community and diplomats and officials of the Pakistan Embassy and their families. The Special Guests presented the prizes to prominent players and officials of the T20 Cricket Tournament.

Addressing the ceremony, the Chief Guest Acharya lauded the Pakistan Embassy’s initiative for successfully organizing the event. He added that the event is now on the sporting calendar of Kathmandu and a manifestation of close relations between Nepal and Pakistan.  He congratulated the winning team and lauded the organizers on successfully materializing the event. He added that the tournament contributed in providing opportunities to emerging cricket players of Nepal.

Ambassador of Pakistan Abrar H Hashmi, in his closing remarks, committed to continue to bring the youths of two countries together by organizing such events in future as well. The Ambassador congratulated all the teams, especially the winning team Himalayan Cricket Academy. He thanked the Chief Guest, special guests and the participants for their interest and presence in the event.

He also extended his gratitude to Himalayan Bank Limited and IME Global Banks for supporting the event. He appreciated the organizing team for making the event a success and also greeted the families of the Embassy officials.

With the introduction of federalism in Nepal, the policy to establish commercial bank branches in all 753 local levels to ensure financial access for every citizen has finally been completed after eight years. Although Nepal Rastra Bank (NRB) initiated this plan in 2017, one rural municipality remained without a bank branch until now. Saipal Rural Municipality in Bajhang, located in Sudurpaschim Province of far west Nepal, officially inaugurated its first bank branch on Monday, marking the completion of this initiative. The branch was opened by Everest Bank under the supervision of NRB Governor Mahaprasad Adhikari.

Until now, the absence of a bank in Saipal Rural Municipality forced residents, including elderly individuals, to undertake arduous three- to four-day journeys to the district headquarters, Chainpur, to access their old-age allowances. The bank had previously cited extreme remoteness and a lack of infrastructure as reasons for not opening a branch.

Saipal Rural Municipality is one of the most remote regions in the far west, unlike other municipalities connected by roads. The hilly terrain makes travel between villages time-consuming, with journeys between settlements taking an entire day. Additionally, the area has a sparse population; according to the 2018 census, only about 2,650 people reside in the municipality. Due to the lack of roads and a low population, banks initially proposed handling all government transactions, including social security payments, through Jaya Prithvi Municipality instead of opening a local branch.

In the fiscal year 2021/22, three local levels nationwide lacked commercial bank branches, including remote areas in Dhading and Junichande Rural Municipality of Jajarkot. However, by June 2022, bank branches had expanded to 752 local levels, leaving Saipal as the only remaining location without one. Now, with the establishment of a branch in Saipal, NRB spokesperson Ramu Poudel confirms that financial access has been achieved at all local levels.

Poudel acknowledged the difficulty of opening a bank branch in such a remote area but emphasized that Everest Bank has now provided access where local infrastructure allows. Reaching the new branch in Dhalaun, a village in Saipal Rural Municipality, is itself a challenge. From Chainpur, Bajhang’s district headquarters, one must take a three-hour jeep ride to Talkot, followed by a seven- to eight-hour trek to Dhalaun.

The administrative center of Saipal Rural Municipality is in Kanda, which requires an additional six- to seven-hour walk from Dhalaun. Given this geographical difficulty, the bank opted to establish its branch in Dhalaun rather than Kanda, ensuring relatively better access for residents.

To promote financial inclusion, the government had previously introduced the ‘One Person, One Account’ campaign. Under the federal structure, NRB directed commercial banks to ensure at least one branch was established at every local level. However, complaints persisted from residents of remote areas who were forced to travel long distances to access banking services for everything from old-age allowances to salary payments for government employees.

Former chairperson of Saipal Rural Municipality, Rajendra Bahadur Dhami, had previously stated that banks were aware of the region’s geographical challenges, including the high cost of house rentals, but still hesitated to open branches. The absence of banking services meant that some transactions in the village were conducted informally, and elderly residents had to endure 70-kilometer treks to the district headquarters just to collect their social security allowances.

Bankers had long resisted expanding to such remote areas due to the lack of essential infrastructure, including roads, electricity, internet connectivity, and secure office buildings. Many banks submitted formal letters to NRB citing these logistical challenges. In response, NRB implemented a round-robin system to ensure all commercial banks contributed to financial expansion across Nepal’s remote regions.

To expedite the process, NRB placed significant pressure on commercial banks to establish branches in all local levels. A lottery system was introduced, dividing responsibilities among the 27 commercial banks operating at the time. Under this system, Everest Bank was assigned the task of opening a branch in Saipal, Bajhang.

As of December 2024, Nepal had 107 banks and financial institutions, including microfinance entities. Among these, 20 were commercial banks, 17 development banks, 17 finance companies, 52 microfinance institutions, and one infrastructure development bank. The number of bank branches, including microfinance institutions, had reached 11,530 by July 2024 and increased to 11,545 by January 2025. With the addition of the Saipal branch, financial inclusion has now extended to every local level in Nepal.

The opening of the bank branch in Saipal represents a significant milestone in Nepal’s journey toward financial accessibility, particularly for marginalized and remote communities. While challenges remain, this achievement marks an important step in ensuring that every Nepali, regardless of location, has access to essential financial services.

Nepal and India have agreed to develop a high-quality transmission line for cross border power trade.

This agreement would be a crucial deal as the Government of Nepal has set an ambitious goal to generate 28,500 megawatts of electricity by 2035.

Spokesperson and Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, Sandip Kumar Dev, the two new transmission lines will be completed by 2034/35, and the capacity of an existing transmission line will be upgraded.

A meeting of Joint Steering Committee and  JSC Secretary-Level Committee of Nepal and India, have agreed to construct the Nijgadh-Harnaiya Motihari and Kohalpur-Lucknow transmission lines of 400 KV. 

Likewise, the existing Dhalkebar-Muzaffarpur transmission line of 400 KV will be replaced with a high-capacity conductor. Currently, 800 megawatts of power are being imported through this transmission line.

During the meeting, a consensus was reached to import and export up to 1,000 megawatts of power. 

The 29th meeting of the Secretary-Level Joint Steering Committee held in India on February 11 was attended by Secretary at the Ministry of Energy, Water Resources and Irrigation, Suresh Acharya and Secretary of the Ministry of Electricity, India, Pankaj Agrawal.  

The two countries have already agreed to construct the Inaruwa-Purniya and Dodhara-Bareli cross border transmission lines of 400 KV. 

In the quiet corners of Nepal’s bustling cities and serene villages a silent crisis is unfolding. Hidden behind veils of cultural norms, economic hardship and peace, is a chorus of silent cries echoing in the shadows. While the nation takes pride in its rich heritage and culture, resilient people, an alarming number of children and adolescents struggle with their mental health that remain unacknowledged and untreated.

Mental health issues among children in Nepal are on the rise. According to a 2023 report by UNICEF, nearly 20 percent of Nepali children show signs of anxiety, depression and other psychological conditions. Yet, only a few of them receive the help they need. In a society where mental health remains heavily criticized, their children often endure their struggles in silence, their cries enveloped by cultural norms.

Parents often push their children to excel academically, believing success in education is the only pathway to succeed in life. To add to their burden, children are often forced to follow passions or career paths chosen by their parents. They are forced into professions their parents once dreamt of but could never achieve themselves. However, this pressure can lead  to anxiety, depression and even suicidal thoughts. According to a 2022 study by the Nepal Health Research Council, Suicide was the leading cause of death among Nepal youths aged 15 to 24.

One of the most significant barriers in addressing the issue is societal perception of mental health. Many parents, bound by traditional beliefs and limited exposure to psychological conditions, perceive mental health conditions as a sign of weakness or even spiritual imbalance. They even believe it to be karma or some sort of evil spirit. Some parents even unacknowledged their kids’ conditions thinking they are making excuses to hold back from their responsibilities. Furthermore, the cultural emphasis on obedience and respect often leaves little room for children to voice their own dreams or dissent.

This lack of understanding and autonomy from parents is the reason why kids nowadays are distant from their parents. They seek solace elsewhere, their eyes glued to glowing screens, scrolling endlessly through the comfort of social media. They find the sense of belonging in the digital world, the happiness that seems absent at home. The only comfort or understanding they get from their parents is when they score 100 percent on a test or when they do better than some relatives’ kids. They are often called disrespectful or ungrateful when they try to isolate themselves from their parents hoping that would help them or they would find peace .

The consequences of neglect puts an impact on their social , academic and emotional behaviors, with some contemplating  self harm. Children feel like they are screaming underwater, the hidden cries not letting them find the way out. Silent cries are more dangerous than open cries as silent cries affect them from deep inside their heart and brain which leads them self-isolating, losing empathy and hating themselves. 

Despite the challenges, hope is not lost. There are many organizations and activists working tirelessly to break the stigma surrounding mental health in Nepal. But first and foremost, the house environment and family support is necessary and important as home is the place they are suffering most at.. Nepali parents are simply too uneducated about mental health; they neglect the silent cries so awareness should be spread.