World Bank projects Nepal's economic growth to slow amid political transition
The World Bank (WB) has said that reflecting the recent unrest and heightened political and economic uncertainty, Nepal's real GDP growth is projected to slow to 2.1 percent in FY26 in the baseline scenario, with a potential range of 1.5 to 2.6 percent.
The WB stated this in its latest Nepal Development Update (November 2025) report launched here today.
According to the WB report, poverty rates (at USD 4.2/day) are slightly higher than previously projected, reaching 6.6 percent in FY26 and 5.9 percent in FY27 compared with 6.2 percent and 5.4 percent projected before the unrest.
Reconstruction efforts are expected to begin in FY26 and gain momentum in FY27, supporting a recovery in GDP growth to 4.7 percent in FY27.
The projected growth slowdown in the baseline is expected to be largely driven by the services sector. Tourism activity is projected to decline sharply, reflecting a significant decline in international tourist arrivals, while the spillover effects of asset losses are expected to weigh on insurance services.
The services sector is projected to recover in FY27 as tourism rebounds, insurance shocks dissipate, and government measures, such as insuring public property, support demand.
Industrial sector growth is projected to slow marginally in FY26 compared to FY25. Hydropower-related industrial activity is expected to remain robust, but non-hydropower-related private investment and construction is projected to be weighed down by weaker investor confidence following the unrest. Industrial sector growth is expected to pick up sharply in FY27, supported by public projects and reconstruction efforts.
Agriculture growth is projected to soften in FY26 due to delayed paddy planting, particularly in Madhesh Province, but is expected to recover in FY27 assuming favorable monsoon conditions.
Finance Minister Rameshwor Prasad Khanal said, "To restore business confidence and accelerate revival, the Government of Nepal has announced an integrated business revival plan, under which facilities such as grants, tax exemptions, and operational support have been arranged."
According to the Finance Minister, priority has been given to public resources for infrastructure reconstruction and election preparation, a reconstruction fund has been established for the restoration of damaged public and private property, and these steps aim to restore private sector activities while laying the foundation for a strong economy, which is the goal of the Government of Nepal.
On the occasion, David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka, said: "Boosting public investment is critical for improving growth, creating jobs, and building prosperity for Nepalis. This requires implementing key reforms including strengthening project planning and budgeting, streamlining land acquisition and tree-cutting processes, improving cash management efficiency, and amending procurement laws and regulations to speed up project delivery."
Inflation expected to remain within 5 percent ceiling
Inflation is expected to remain within the central bank’s 5 percent ceiling over the medium term. Easing global commodity prices, moderating inflation in India (transmitted through the currency peg), and softer cost pressures will help contain prices. However, these gains would be partially offset by a potential decline in domestic paddy output, which could keep food inflation elevated in FY26.
The current account surplus is projected to widen in FY26, driven by rising remittances despite a projected increase in the trade deficit and underperformance in tourism. The trade deficit is expected to widen slightly in FY26, led by imports of merchandise—particularly crude edible oils and construction equipment for hydropower— and more substantially in FY27 with higher demand linked to non-hydro construction projects.
Tourism receipts are expected to decline. These downward pressures on the external account are expected to be offset by robust remittance growth, resulting in a widening of the current account surplus from 6.7 percent of GDP in FY25 to 7.3 percent in FY26. The surplus is projected to moderate in FY27 as remittances level off. FDI inflows are likely to remain subdued over the medium-term. Foreign exchange reserves are expected to stay comfortably above the regulatory minimum of seven months of import cover.
The fiscal deficit is projected to widen in FY26 to 2.8 percent of GDP driven by increased spending on reconstruction, elections, private sector relief, and outstanding liabilities. These increased spending needs are expected to be partially offset by announced austerity measures and reprioritization of development projects, supported by relaxed virement rules.
Nominal revenue growth is projected to slow in FY26, reflecting weaker import growth and lower VAT and corporate income collections, particularly from the insurance and tourism sectors. The deficit is forecast to narrow in FY27 as revenues recover. Deficits are expected to be financed through a mix of external concessional and domestic borrowing within statutory ceilings. Public debt is projected to increase from 43.6 percent of GDP in FY25 to 45.2 percent in FY26 and stabilize thereafter keeping Nepal at low risk of debt distress.
The outlook is subject to mixed risks. Key downside risks include rising frequency of natural disasters and persistent political uncertainty weighing on economic activity, higher NPLs straining the domestic financial sector, Nepal’s continued presence on the Financial Action Task Force Grey List, and disruptions to public services and core administrative processes reflecting damage to public infrastructure. On the upside, a successful political transition and sustained macroeconomic management could strengthen investor sentiment supporting a stronger economic recovery.
Recent Economic Developments
According to the WB, Nepal's economic growth picked up to 4.6 percent in the FY25 from 3.7 percent in FY24. The rebound was led by manufacturing and construction, supported by increased hydropower generation. Agriculture also contributed positively with paddy output rising despite flood damage. The services sector performance was mixed. Growth slowed in tourism, affected by Tribhuvan International airport (TIA) upgradation works and geopolitical tensions that disrupted international flights to Nepal via the Middle East.
Financial sector activities were impacted by subdued credit demand and rising non-performing loans (NPLs). On the other hand, wholesale and retail trade performed well supported by higher merchandise imports and improved access to trade finance.
Headline inflation declined to 4.1 percent in FY25 from 5.4 percent in FY24 falling below the Nepal Rastra Bank’s (NRB) 5 percent ceiling. Both food and non-food inflation moderated although this was partly offset by rising transport costs due to higher public transport fares.
The monetary policy stance remained cautiously accommodative, underpinned by comfortable foreign exchange reserves and easing inflation. The policy rate was reduced by 50 basis points to 5.0 percent at the start of FY25 following a sharper 150-basis-point cut in FY24. As monetary easing continued, lending rates fell more sharply than deposit rates, reaching a record low of 8.7 percent.
Nevertheless, private sector credit expanded only modestly, as weak demand and rising NPLs constrained lending. The NPLs ratio climbed to 4.6 percent at the end of FY25 from 3.9 percent at the end of FY24. This increase occurred despite the introduction of forbearance measures for the construction sector and for small loans (up to NPR 50 million) in select sectors such as agriculture and fishing that had accounted for a large share of NPLs in FY24. However, banks maintained strong capitalization, and overall profitability improved marginally.
The current account surplus widened further in FY25 rising to 6.7 percent of GDP from 3.9 percent of GDP in FY24, supported by remittances. Healthy remittances were driven by Nepali workers moving to new, higher-wage destinations such as Japan and South Korea, a weaker Nepali Rupee, and increased use of formal transfer channels.
The trade deficit remained stable in FY25 as both exports and imports picked up sharply. Export growth was driven by refined edible oils - mainly soybean and sunflower oil re-exported to India - after India raised import tariffs on edible oils from non-SAFTA countries. Imports increased in parallel, reflecting higher crude edible oil purchases from major suppliers, including Argentina and Brazil. The widening current account surplus contributed to robust foreign exchange reserves, which picked up to cover 15.4 months of import by end of FY25.
The fiscal deficit narrowed to a nine-year low of 2 percent of GDP in FY25 supported by stronger revenue mobilization. Revenues (including grants) picked up to 20 percent of GDP in FY25 from 19.4 percent of GDP in FY24, bolstered by higher VAT collections, increased excise duties on alcohol and beer, and increased trade-based revenues from rising merchandise imports and higher customs duty rates.
Total expenditure increased slightly from 21.9 percent of GDP in FY24 to 22 percent in FY25 driven by larger budget allocations for capital spending rather than improved execution. Capital expenditure execution remained weak at 63.2 percent in FY25 (slightly lower than the 63.5 percent in FY24) held down by several challenges across the project cycle as discussed in detail in the special focus chapter. Recurrent spending declined marginally from 18.5 percent of GDP in FY24 to 18.3 percent of GDP in FY25, reflecting lower domestic interest payments and reduced fiscal transfers to subnational governments.
Nepal’s trend of disasters
Nepal is one of the most disaster-prone countries in the world. The question is not whether a disaster will occur, but which type and when. Marking this week as Disaster Risk Reduction Week in continuation of the International Day for Disaster Risk Reduction observed on Oct 13, Looking at past disasters from a retrospective perspective, in addition to recurring events such as earthquakes, floods, and landslides, we can also identify unique incidents such as the Armala sinkhole in Pokhara, the tornado in southern Nepal, the recent sinkhole in Hetauda, and the outburst of a supraglacial lake in Tibet that caused floods in Rasuwa.
On July 8, a sudden flash flood triggered by the rapid discharge of a supraglacial lake on the Purepu Glacier in Tibet caused widespread devastation along the Bhotekoshi River in Rasuwa, Nepal. The event claimed at least 11 lives and left 18 people missing. At the same time, Nepal experienced drought in the Tarai within a span of just 150–200 kilometers, underscoring the complex reality of disaster exposure in the country. Earlier, on May 2, a road in Gairigaun, Hetauda, suddenly caved in, swallowing a vehicle into a swamp-like sinkhole. The vehicle remains missing despite search operations. These two recent events, one a transboundary disaster and the other a unique local hazard, prompt the author to revisit unique past disasters in Nepal rather than recurring ones. Starting with the May 2012 Seti River flood, the author reviewed all unique disasters and their impacts in the country.
On 5 May 2012, a massive avalanche from Annapurna IV triggered a sudden flood in the Seti River, Kaski District, killing 72 people, displacing many families, and causing heavy property loss. Dwivedi & Neupane (2013) reported that approximately 32,000 m² of ridge collapsed from 6,850 meters to 4,500 meters, pulverizing ice, rock, and sediment. The impact generated a brown cloud, strong vibrations, and seismicity equivalent to 3.8–4.0 Richter Scale, recorded in Nepal and even in Tibet. The debris rushed downslope into the Seti River, transforming into a debris flow that traveled 20 km downstream at speeds of about 12 m/s within 28 minutes. Although minor rainfall had occurred a day earlier, it was not linked to the avalanche.
During Nov 2013, major sinkholes formed in Armala, Pokhara. The region, where the Pokhara and Ghachock formations meet, consists of fluvio-lacustrine terraces with mixed sediments of gravel, limestone, quartz, gneiss, calcareous silt, clay, and fine sand. Between 2013 and 2017, over 200 sinkholes formed in Armala, creating severe challenges for residents. On 31 March 2019, strong winds and hailstorms hit Bara and Parsa districts, killing 30 people, injuring more than 1,150, and making over 2,890 families homeless. Infrastructure, utility services, agricultural land, and businesses were damaged. Research suggested this was the first officially recorded tornado in Nepal, though some classified it as a windstorm. Regardless, such wind events on this scale are unusual in the country.
On 15 June 2021, a disastrous debris flow occurred along the Melamchi River in central Nepal and caused enormous loss of life and property. At least 350 residential buildings, six bridges, and numerous infrastructures were affected. According to the World Bank and GFDRR, the flood resulted from the combined effect of heavy rainfall, temperature changes at the snow line, erosion in the end moraine of Pemdan Lake, a possible breach of the natural dam responsible for the lake, and cascading effects of the dam breach, along with erosion and a series of landslides along the Melamchi River.
In Oct 2021, the Mahakali, Karnali, and Seti rivers recorded the highest flows in decades due to unseasonal rainfall, hitting Sudurpaschim Province hardest. The disaster caused 88 fatalities, 30 missing persons, and 10 injuries.
On 13 Aug 2023, heavy rains caused floods in Muktinath, Kagbeni village of Mustang. About 31 buildings, two permanent and three temporary bridges, were destroyed. According to Fort et al. (2024), Kagbeni (2,810 meters) lies in the north Himalayan rain-shadow area and normally receives little rainfall (<300 mm/yr).
However, for several years, the trend has been toward increased rainfall, leading to more landslides and floods. Although rainfall data from the nearest monitoring station, Jomsom (2,720 meters), showed high rainfall, there is no detailed information about rainfall amounts at Jhong (3,600 meters) and Muktinath (3,760 meters), the source area of the Kagbeni flood. The flood was likely a landslide lake outburst, but the difficult terrain has limited detailed study.
Nepal has also recently experienced heat extremes. On 30 May 2024, Nepalgunj reached 44.2°C and Dhangadhi 44.1°C, closer to the highest ever recorded data of 46.4°C in Dipayal on 5 June 1995.
On 8 July 2024, the cloudburst event occurred, where Dodhara Chandani in Kanchanpur recorded the heaviest 24-hour rainfall in the 77-year history of rainfall measurement in Nepal, with a recording of 624 mm. Other nearby stations recorded similar extreme rainfall, surpassing previous records from 1993.
On 16 Aug 2024, a sudden flood carrying boulders devastated Thame village in Khumbu, destroying 60 buildings and damaging various structures. On that day, there was hardly any rainfall. It was later found that the flood was caused by an outburst from the Thyanbo glacial lake. Other significant events include the Birendra Lake overflow on 21 April 2024 with no human casualties. On 12 July 2024, A landslide struck two buses at Simaltal, Chitwan, sweeping them into the Trisuli River and causing the loss of 59 lives.
During 27–29 Sept 2024, extreme precipitation caused flooding, landslides, and inundation across different parts of Nepal. The Department of Hydrology and Meteorology (DHM) recorded rainfall at 222 stations nationwide, of which 77 stations reported heavy rainfall exceeding 200 mm on 28 September. Among the hydrological gauging stations, 23 recorded water levels surpassing the danger level, while another 14 recorded levels exceeding the warning threshold. The floods affected 518,403 households and a population of 2.59m, with an estimated economic loss of Rs 46.6bn. During this event, three buses were buried by a mudslide in Jhyaple Khola, Dhading, resulting in the loss of at least 35 lives.
On May 15, at around 10:30 pm, a sudden debris flow occurred in the Tiljung stream in Namkha, Humla. The incident affected the 15 kW micro-hydropower project, drinking water sources, cultivable land, irrigation canals, and the motorable bridge over the Til stream. According to field reports, this was likely caused by the melting of permafrost within the moraine, which developed into a cavity or piping system extending to the lakebed, ultimately resulting in the sudden drainage of the lakes. The Til flood does not resemble a typical GLOF, but a detailed study could classify it more accurately as a Thermokarst Flood or Permafrost-Release Flood. A massive flood in Upper Mustang on July 9, carrying mud and damaging six bridges, including four that were completely swept away.
Also, the cyclones that develop in the Arabian Sea and the Bay of Bengal have indirect impacts and sometimes cascading and compounding effects. For example, Cyclone Tauktae in May 2021 caused mild to light rainfall across western Nepal, with a flash flood in Ramaroshan in Achham District in Sudurpashim Province. Cyclone Yaas in May 2021 left various parts of Nepal drenched in rain and overcast conditions. On 14 Oct 2014, sudden weather changes caused by Cyclone Hudhud in Nepal reportedly triggered avalanches around Dhaulagiri and Annapurna. The avalanches and heavy snowfall killed at least 43 people in Nepal and caused heavy rainfall in major cities.
Along with recurring events such as earthquakes, including the 2015 Gorkha Earthquake, the Doti Earthquake of 2022, and the Bajhang and Jajarkot earthquakes of 2023, as well as annually occurring monsoon disasters, and global pandemics such as Covid-19, unique disaster events have caused major damage to both life and property. These events have resulted in substantial economic losses and placed a heavy burden on reconstruction, rehabilitation, and recovery efforts, ultimately impacting Nepal’s overall GDP. Some of the above events include transboundary challenges in disaster management, where disasters originating in neighboring countries also cause loss of life and property in Nepal.
In addition, the change in the pattern and intensity of rainfall, unseasonal droughts, increasing heatwaves and forest fires, along with various climate extremes, reflect the evolving risks caused by climate change. According to NDRRMA, although rainfall during the first 90 days of this year’s monsoon has been below average, monsoon-related disasters have already caused 63 deaths and left 22 people missing. As hydro-meteorological events and their effects increase, the early warning system for such hazards needs to be strengthened. In 2024, forecasts issued by the DHM were almost 70 percent accurate, but in 2025, accuracy appears to be lower, highlighting the need for technological improvements to enhance forecast reliability.
According to the National DRR Strategic Plan of Action (2018–2030), the target was to reduce annual disaster-related deaths to 300 by 2025. However, given the current situation, achieving this target seems challenging. Moving from disaster management to investing in risk reduction is more effective, more efficient, and fairer. This is also the message of the International Day for Disaster Risk Reduction: “Fund resilience, not disasters. Disaster risk financing strategies must also be strengthened, especially to protect agriculture and farming, while reducing the financial burden in the post-disaster phase.
The Government of Karnali Province has already introduced good practices in risk transfer and insurance by launching the Natural Disaster Risk Group Insurance Program, which provides coverage of up to Rs 200,000 and has reached around 1.7m people. In addition, the Disaster Home Protection Program has supported 16,078 households with benefits worth Rs 8.8m as of the fiscal year 2024/25. It is also essential to engage and support community disaster management committees, local women’s and youth groups, so their involvement extends beyond formal channels and can be immediately mobilized after a disaster.
It is equally necessary to equip all security forces with the required personnel, rescue gear, and rapid response training needed for swift mobilization, and to explore the possibility of establishing a separate National Disaster Response Force, as the country needs regular human resources dedicated to disaster response. We are all aware that Nepal is one of the most disaster-prone countries in the world, but it is also time to explore potential hazards that may cause disasters, as past trends have shown unexpected events in the country. It is high time we ask ourselves and prepare for every possible disaster, since Nepal seems to be safe only from marine disasters.
The author is an earthquake engineer with over a decade of experience in practice and research in DRR, civil and earthquake engineering
Landlocked to land-linked: Nepal’s industrial and logistics transformation
Nepal’s landlocked position between India and China, two of the world’s fastest-growing economies, presents both challenges and opportunities. On one hand, Nepal’s dependence on external gateways for international trade increases shipping costs, extends delivery times, and exposes exporters to monopolistic practices by shipping lines and intermediaries at transit or transshipment ports. These inefficiencies, coupled with risks of fraud in the supply chain, have reduced Nepal’s competitiveness in the global market.
Logistics costs in Nepal are estimated to account for about 25–30 percent of the total value of products, factoring in documentation time, bank and customs procedures, and transit delays. This high cost base hinders exports and slows industrial growth.
Yet, Nepal also holds distinct advantages. Its strategic location at the crossroads of South and East Asia, the potential to expand its manufacturing base, and a strong private sector active in freight forwarding for exports all position the country for growth. However, import handling, customs brokerage, warehousing, and distribution services remain underdeveloped.
In the absence of an integrated Industrial and Logistics Master Plan (ILMP), Nepal has been unable to fully leverage these strengths. The ILMP seeks to bridge this gap by integrating trade facilitation, industrial development, and logistics modernization into a unified national strategy. It recognizes logistics as the fourth pillar of competitiveness—alongside policy, infrastructure, and skills—and envisions transforming logistics into a sector that drives industrial diversification, export growth, and regional integration.
Why industrial–logistics synergy matters
For a landlocked economy like Nepal, efficient logistics are crucial for reducing trade costs, improving reliability, and connecting businesses to regional and global value chains. Fragmented logistics systems impose high transaction costs, cause unpredictable delivery schedules, and undermine confidence in international trade.
Integrating industrial and logistics planning means ensuring that dry ports, ICDs, logistics parks, cold chains, and customs points are physically and operationally linked to industrial zones, SEZs, and trade corridors. It also requires aligning industrial investment policies with those promoting logistics service providers (LSPs), enabling both sectors to grow in tandem and attract greater foreign direct investment (FDI).
Nepal’s logistics and industrial ecosystem
Over the past decade, Nepal’s logistics landscape has evolved significantly. The country now has dry ports and inland container depots (ICDs) in Birgunj, Bhairahawa, Nepalgunj, Biratnagar, Chobhar, and Tatopani, among others. The private sector, especially members of the Nepal Freight Forwarders Association (NEFFA), has played a key role in linking customs operations, transportation, and storage along major supply chains.
Despite these gains, challenges persist: limited multimodal connectivity, long border wait times, a complex policy environment, inadequate infrastructure for cold chain and e-commerce logistics, and limited adoption of digital systems for supply chain management and risk mitigation.
The ILMP aims to address these issues by ensuring that logistics are treated not as an afterthought but as a core component of industrial policy, fostering closer coordination between production hubs and logistics nodes.
Regional context: Corridors for connectivity
Nepal’s unique location between India and China makes it an ideal candidate to evolve from a landlocked to a land-linked nation, a vital transit bridge in South and East Asia. The South Corridor (India–Nepal) remains Nepal’s primary trade route through Indian ports, while the North Corridor (China–Nepal) and the East–West domestic corridor present new opportunities for balanced industrial growth and regional integration.
However, high costs, lengthy procedures, and repetitive documentation requirements across borders continue to constrain trade. Strengthening regional connectivity therefore requires proactive diplomatic and technical negotiations with transit countries—supported by a robust logistics master plan that builds confidence among neighbors to use Nepal’s territory as a transit or transshipment route.
Responding to global megatrends
Global supply chains are being reshaped by three major forces: digitalization, decarbonization, and resilience. To stay competitive, Nepal must embrace these trends by developing digital trade systems, promoting green logistics infrastructure, and building resilient, shock-absorbing supply chains that can adapt to global disruptions.
Vision for the future
Nepal’s vision should be to transform itself from a landlocked country into a land-linked, competitive, and sustainable industrial and logistics hub connecting South and East Asia. This vision centers on empowering small and medium enterprises (SMEs), integrating into global supply chains, and boosting national competitiveness.
Strategic priorities include: developing industrial-logistics corridors; strengthening private sector participation; accelerating digitalization; ensuring environmental sustainability, and building human capital to drive logistics innovation
The way forward
Freight forwarders and logistics service providers identify five key strategies outlined in the ILMP to realize this transformation: integrated planning, infrastructure modernization, policy coherence, governance and skills development, and regional integration
The Industrial and Logistics Master Plan (ILMP) is more than a blueprint for infrastructure; it is a roadmap for Nepal’s transformation. By positioning logistics as a catalyst for competitiveness, openness, and resilience, the ILMP represents a shared vision between policymakers and freight forwarders to turn Nepal’s geography from a constraint into an advantage. It marks a strategic shift from being landlocked to becoming land-linked, unlocking Nepal’s potential as a dynamic connector between the world’s fastest-growing regions.
Dhole, lioness and a polity on the brink
Nature, in its raw complexity, offers more than ecological insight; it serves as a diagnostic mirror for human governance. In this piece, I, a field researcher at the University of Basel on governance and sustainability sciences, aim to draw parallels between the behavioral patterns of Dhole (the Asiatic wild dog, locally known as Bwanso) at Nepal’s Dhorpatan hunting reserve, predatory behavior of Nepal’s political institutions and a polity on the brink.
Based on my field research at the reserve, I can say that the Dhole’s surplus aggression, killing beyond necessity, barking without cause and obsessively marking territory reflects a drive for dominance untethered from survival.
Oversexed during the mating season (mating occurs up to 40 times a day), the lioness shows erratic shifts in her behavior. She growls and signals a breakdown in cooperative dynamics with her lion. These instinctual cycles of excess, fatigue and territorial assertion are not merely biological curiosities; they metaphorically shed light on the behavioral pathology of Nepal’s political institutions in chaos for over three decades.
A vicious cycle
Since Nepal’s political shift in 1990, governance has been under the domination of the Nepali Congress, UML/its factions and later the Maoists, each contributing to institutional decay. The Maoist insurgency, launched in the 90s with the promise of inclusion and anti-corruption, brought immense human, private properties and infrastructural losses but failed to deliver stated reforms. Successive governments engaged in corruption, enabled capture of public properties and weakened state institutions.
Leaders such as Khadga Prasad Sharma Oli, Pushpa Kamal Dahal, Sher Bahadur Deuba, Madhav Kumar Nepal, Baburam Bhattarai, Jhalanath Khanal, and late Girija Prasad Koirala presided over regimes marked by impunity and performative politics. Oli, now UML chairman and a multi-term Prime Minister, increasingly defies institutional norms, positioning himself as a national savior while his party cadre applaud his witty lines.
The bureaucracy has become a pawn for political groups, and public trust in this institution has eroded. Nepal’s political culture driven by dominance, exhaustion and erratic behavior mirrors the chaotic aggression of the lioness and the dhole. Lavish attention has led political figures to mistake flattery for stature, much like the donkey who, after receiving undue praise, believed itself to be a lion.
Economic paradoxes
The Ministry of Finance reveals that in 2023-24, Nepal’s total public debt (domestic and external combined) stood at Rs 2,434.57bn, rising to Rs 2,664.42bn in 2024-25, a 9.4 percent annual increase. Public revenue in 2024-25 totaled Rs 1,196.19bn, against a national budget of Rs 1,860.3bn.
Expenditures reached Rs 1,512.98bn, achieving an execution rate of 81.33 percent. Of this, current expenditures consumed most of the budget, while capital spending (18 percent) lagged far behind, reflecting a chronic inability to implement developmental projects effectively. On the trade front, imports reached Rs 1,841.20bn, dwarfing exports of only Rs 277bn.
Remittance increased 19.2 percent and the total amount reached by Rs 1723.27bn in 2024-25, constituting 28.22 percent of the GDP. The GDP increased modestly from Rs 5,705.10bn in 2023-24 to Rs 6,107.22bn in 2024-25, with agriculture contributing 25.6 percent, industry 12.4 percent, and services 62.2 percent. The overall economic growth rate of 4.61 percent is insufficient to absorb the expanding labor force or sustain developmental ambitions.
Despite modest growth, Nepal’s structural economy remains severely distorted. Infrastructure across economic, social and environmental sectors is deteriorating. The tourism industry continues to suffer from unreliable and costly connectivity systems. Domestic airfares remain disproportionately expensive, discouraging travel. Agricultural stagnation persists due to poor input supply, inadequate processing facilities, technologies and weak market linkages, despite heavy public spending. Each year, approximately half a million Nepalis enter the labor market, yet the domestic economy generates very few viable jobs.
Consequently, labor migration remains the default escape, with an additional 250,000 renewing their work permits annually. The economy, therefore, is sustained not by innovation or productivity but by remittances. This condition stands in stark contrast to the insights of the 2025 Nobel Laureates in Economic Sciences: Prof Peter Howitt, Prof Joel Mokyr, and Prof Philippe Aghion, who emphasises innovation-driven growth and institutional dynamism as the foundation of sustained prosperity that Nepal has already missed.
Myth of a directly elected chief
Nepal’s political economy is deeply compromised by state capture, corruption and impunity conditions that have galvanized the GenZ movement. The electricity billing crisis exemplifies systemic injustice: while industrial elites evade payment through litigation, ordinary citizens face disconnection after brief delays. Illicit invoicing and bribery further erode the tax base and institutional capacity.
GenZ activists have exposed the stark contrast between the opulence of political leaders with private gyms, swimming pools, stock of imported liquors, hoarded cash and the deprivation in rural communities lacking basic social/economic infrastructure, health, education and maternal care. Their call to bring the “Lion/Lioness and the Dhole to justice” reflects a broader demand for governance reform.
Among their proposals, the push for a directly elected executive has sparked debate. While the appeal for decisive leadership is understandable, Nepal’s fragile state institutions, uneven education and diverse social fabric and wrongful political fragility make a directly elected executive risky. Without strong institutional checks and balances, the state could slide into totalitarian and authoritarianism. The crisis is not merely government structural but rooted in moral hazard, as political actors manipulate democratic processes for personal and political group gains.
Nepal must first restore institutional integrity with strong checks and balances before mulling over a directly elected executive. The immediate priority is doing away with corruption, which is thriving due to the involvement of political groups and their leaders, and rebuilding public trust.
A moral and institutional renewal
Nepal’s salvation does not lie in adopting a new executive model but in undertaking a rigorous, impartial legal reckoning against widespread and unchecked corruption. The nation must confront the rooted networks of political and bureaucratic corruption that have hollowed out governance and state institutions. Only through the prosecution and removal of corrupt political leaders and officials, and the restoration of ethical governance can Nepal build a sustainable path toward peace, justice, inclusive development and prosperity.
Until then, the nation’s political stage will continue to resemble the wild drama of the lion/lioness and Dhole marked by instinct, exhaustion and unrestrained appetite, rather than by reason, discipline and the pursuit of common goods.
Nepal rejects Malaysia’s labor standards
Nepal has sent an official diplomatic note stating that the 10-point labor standards sent by Malaysia are invalid.
The letter prepared by the Ministry of Labor, Employment and Social Security was sent to Malaysia through the Ministry of Foreign Affairs via the Nepali Embassy in Kuala Lumpur.
Concluding that the letter sent by Malaysia is an attempt to implement a syndicate system among manpower entrepreneurs, Nepal has made it clear that it is impossible to implement the standards.
According to the Nepal government, the standards are unacceptable as they affect equal opportunities, transparency and fair competition of foreign employment agencies registered in Nepal.
Malaysia had issued a 10-point criteria for the selection of manpower companies for Nepal, India, Bangladesh, Pakistan and Myanmar on Oct 27.
German Embassy hosts reception to celebrate German Day
Ambassador of the Federal Republic of Germany to Nepal Udo Eugen Volz and Marianne Beck-Volz graciously hosted a reception at the ambassador’s residence in Gyaneshwor on Friday to commemorate the 35th Anniversary of the Day of German Unity and 67 years of diplomatic relations between Nepal and Germany.
Vice President Ram Sahay Yadav graced the occasion as the special guest.
In his welcome remarks, Ambassador Volz stated, “Today, as we celebrate 35 years of German Unity, we also mark 67 years of bilateral relations between Nepal and Germany. Germany has stood by Nepal through challenging times — during the civil war, the 2015 earthquake, the COVID-19 pandemic, and the current democratic renewal. We appreciate the commitment to reinforce democratic values like accountability and service delivery to the people of Nepal,” reads a statement issued by the German Embassy in Kathmandu.
This year also commemorates 51 years of GIZ’s presence in Nepal, 62 years since the establishment of KfW, and 18 years of PTB's engagement in the country.

As key institutions under the German Development Cooperation, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) has been providing impactful technical assistance to Nepal, while Kreditanstalt fur Wiederaufbau (KfW) has supported the country through financial cooperation across diverse sectors.
Likewise, the Physikalisch-Technische Bundesanstalt (PTB) — Germany’s national metrology institute — has been contributing to strengthening Nepal’s quality infrastructure by supporting standards, metrology, testing, and accreditation systems that promote fair trade and enhance industrial competitiveness.
Government bodies, political leaders, diplomats, business people, journalists, and intellectuals, reflecting the enduring partnership and shared values between Nepal and Germany, attended the event.
Nepal’s eroded democratic path
Lorenzo Viviani’s ‘Leadership and Democracy: A Political Sociology of the Personalization of Leadership’ examines how political leadership is transforming in contemporary democracies. He argues that power is increasingly personalized, shaped by the charisma, image and populist styles of individual leaders. These developments, Viviani explains, redefine leadership, legitimacy and democratic institutions. To understand modern leadership, he emphasizes, one must analyze how the relationship between leaders and voters is evolving and what factors shape perceptions of legitimacy and trust (2024).
Nepal’s recent political developments can be interpreted within this framework. The youth-led protests of Sept 8–9 raised profound questions about leadership, legitimacy and governance. A major turning point came earlier that month, when the government imposed a social media ban on Sept 4. The subsequent protests not only forced the government’s resignation but also fundamentally reshaped Nepal’s political discourse. A lack of transparency, declining charisma among political leaders and the rise of populist rhetoric were central to this crisis.
Thousands of young people mobilized against the Oli government, accusing it of authoritarian behavior and widespread corruption. Tragically, security forces killed a number of protesters and injured many others on the first day. The government’s response was marked by indifference; no cabinet minister resigned or expressed remorse.
Instead, officials used harsh language against demonstrators, exposing the regime’s authoritarian tendencies despite its democratic mandate. Public anger intensified, and by the second day, the protests had turned violent. Government and private properties, including the Prime Minister’s Office, the Supreme Court and residences of political figures, were set ablaze. Unable to control the situation, the Oli government resigned, and the prime minister was evacuated under military protection. Prominent figures, including Nepali Congress leader Sher Bahadur Deuba, were assaulted by crowds in an unprecedented display of public outrage.
In the aftermath, an interim government was established under former Chief Justice Sushila Karki, with a mandate to conduct parliamentary elections within six months. From a conflict studies perspective, this transition offers valuable insights into the erosion of democratic legitimacy and the interplay of leadership, governance and populism.
The Oli administration had failed to meet public expectations, relying on nationalist rhetoric as a political survival strategy rather than pursuing genuine reform. His government’s verbal attacks, manipulative politics and outdated economic vision alienated the public. Instead of strengthening institutions, it punished opponents selectively and used the justice system for retribution. Transparency collapsed, and bureaucratic inefficiency appeared to serve as a shield to corruption.
The decline of charisma among Nepal’s political elite further deepened the crisis. Charisma, in this context, refers not to personal appeal but to visionary leadership and moral authority. Long-standing political leaders failed to articulate a compelling national vision. The traditional rhetoric of democracy, development and prosperity no longer inspired the youth. Dominated by aging figures with conventional mindsets, major parties have struggled to deliver tangible progress, leading to public disappointment. When leaders lose moral grounding and credibility, authority inevitably weakens.
Figures such as KP Oli, Sher Bahadur Deuba and Pushpa Kamal Dahal saw their influence erode as perceptions of self-interest and moral decay grew. Their visible wealth and comfort contrasted sharply with public hardship, reinforcing cynicism. The resulting collapse of charisma contributed to governance instability and accelerated democratic erosion.
Neo-populist trends also played a critical role in Nepal’s recent upheaval. Both emerging and established leaders adopted populist strategies to gain influence. Within the Nepali Congress, Gagan Thapa’s campaign for youth leadership directly challenged the establishment authority of senior figures such as Sher Bahadur Deuba. While the movement mobilized younger voters, it often prioritized personal ambition over institutional reform and civic education.
Although frustration with the older generation’s corruption and stagnation is understandable, turning to populist shortcuts risks further democratic erosion. Leaders propelled by populist appeal frequently weaken institutions, restrict civil liberties and centralize power, even when elected through democratic means. Consequently, Thapa and his allies, despite their electoral legitimacy, risk undermining Nepal’s fragile democratic foundations if populism continues to define their political trajectory.
As Viviani observes, political power has become increasingly personalized. Nepal’s youth movement and subsequent political transition exemplify how populist manipulation of public discourse can disrupt democratic stability.
Fueled by technology and vast, often misleading information flows, young protesters demanded instant transformation and prosperity.
However, the absence of civic education and unrealistic expectations led to frustration and destructive outcomes. The violence and instability that followed severely damaged Nepal’s international standing. Foreign investors, already cautious, became even more hesitant. The destruction of historic landmarks, private enterprises and public infrastructure symbolizes not renewal but regression. Ultimately, the crisis has left Nepal more polarized, ego-driven and fragile, posing serious challenges for the nation’s democratic future.
Nepal’s recent political crisis reflects the growing personalization of power that Viviani describes in Leadership and Democracy. The 2025 youth-led protests, sparked by government repression and corruption, exposed the collapse of transparency, moral leadership and public trust. As traditional leaders lost credibility and populist figures rose, Nepal’s democracy weakened further, marked by violence, institutional decay and deep generational frustration with unfulfilled promises.
'NEA will also benefit from the cross-border transmission line'
The government has made it clear that Nepal Electricity Authority (NEA) will also benefit from the cross-border transmission line to be built between Nepal and India.
An agreement has already been signed between Nepal and India to jointly construct two additional 400 KV cross-border transmission lines—Inaruwa-Poornia and Dododhara-Bareilly.
For this, a joint venture company is to be established between Nepal Electricity Authority and Power Grid Corporation of India Limited.
According to the agreement, NEA's share in the joint venture company will be 51 percent in the section to be built in Nepal, shared Sandeep Kumar Dev, Joint-Secretary at the Ministry of Energy, Water Resources and Irrigation.
Similarly, the NEA will have a 49 percent stake in the transmission line to be built in the Indian section.
The ministry has said that the construction of trans-country transmission lines has been given priority to ensure a market for the electricity generated from the power projects for which power purchase agreements have been concluded.
Accountability in journalist killings in Nepal
The image of journalist Suresh Rajak, who was killed during the royalist movement on March 28 this year, comes into my mind as the world marks the International Day to End Impunity for Crimes Against Journalists 2025. Rajak lost his life in a horrific fire incident in suspicious circumstances while he was filming the demonstration from inside a house for a television channel. Despite the Federation of Nepali Journalists (FNJ) forming an investigation committee and repeatedly demanding a state-led inquiry, a proper investigation to identify and prosecute those responsible has yet to begin. In this article, the writer first provides an overview of journalist killings in South Asia, including Nepal, in 2025, followed by an analysis of the current status of justice for slain and disappeared journalists in Nepal. Finally, the article examines the underlying causes of these incidents and explores possible ways to ensure accountability and protect journalists.
Together with Rajak, South Asia witnessed the killing of nine journalists in 2025, according to a report from the International Federation of Journalists (IFJ) published on 1 Nov 2025. The IFJ also confirmed that by November 2025, India recorded the highest number of journalist killings in South Asia, with four journalists—CH Naresh Kumar, Dharmendra Singh Chauhan, Raghvendra Bajpai, and Mukesh Chandrakar—losing their lives in targeted attacks, bombings or crossfire incidents. In Bangladesh, two journalists—Md Asaduzzaman Tuhin and Khandaker Shah Alam—were killed, while in Pakistan, two media workers—Abdul Latif Baloch and another unidentified journalist—lost their lives. If we look at the global picture, a total of 99 journalists have been killed so far in 2025, according to the IFJ’s latest statistics. More than half of these deaths—50—occurred in Gaza, Palestine, followed by eight in Ukraine and six in Sudan.
According to UNESCO, 85 percent of journalist killings remain unpunished worldwide. As the majority of journalists killed this year were reporting from war zones, the prospects for justice in these cases are even slimmer. Globally and regionally, impunity remains the norm rather than the exception.
Let’s return to the case of Nepal. In 2024, Nepal witnessed another tragic killing of journalist Suresh Bhul (30). While local authorities claimed that cattle theft was the reason behind the lynching, reports from Reporters Without Borders (RSF) revealed that Bhul had been receiving threats from local elected officials due to his activism for the right to information and his critical stance on local governance issues.
Decades of impunity
During the decade-long Maoist insurgency (1996–2006) and the post-conflict period, journalists were often targeted by both warring sides and political actors. According to Freedom Forum, 23 journalists were killed between 1996 and 2016—14 during the conflict and nine after the Comprehensive Peace Accord (CPA) of November 2006. Also, the period witnessed enforced disappearance of three journalists during the period, per data from the Freedom Forum. The Federation of Nepali Journalists (FNJ) has varying data. According to the FNJ, a total of 38 journalists were killed and four had become victims of enforced disappearances up to 2018. Since then, two more journalists—Suresh Rajak and Suresh Bhul—were murdered in 2024 and 2025, respectively
Despite the long list of journalists killed in Nepal, justice has been delivered in only a handful of cases, with convictions achieved in just a few—Dekendra Raj Thapa, Uma Singh, Birendra Shah, Arun Singhaniya and Yadav Poudel. Journalist Dekendra Raj Thapa, abducted and killed by Maoist cadres in 2004, finally received some semblance of justice after 17 years when the Dailekh district court, on 12 Dec 2021, sentenced perpetrators to life imprisonment. In the case of Uma Singh, a radio journalist murdered on 11 Jan 2009, the Janakpur high court upheld the Dhanusha district court’s verdict, sentencing culprits to life imprisonment with property confiscation. Progress was made in the 2007 killing of journalist Birendra Shah, with Narendra Faujdar arrested on 27 Oct 2024, and Hareram Prasad Kurmi on 10 Sept 2020, while few other perpetrators had already been sentenced to life imprisonment.
In another landmark verdict, the Janakpurdham high court, on 21 Sept 2022, sentenced the culprits to life imprisonment for masterminding the 1 March 2010 murder of media entrepreneur Arun Singhaniya. In the case of Yadav Poudel, a journalist killed on 3 April 2012, in Jhapa, the appellate court in Ilam, on 8 July 2014, sentenced the perpetrators to life imprisonment. Further, cases of slain journalist Jagat Prasad Joshi and media entrepreneur Jamim Sah remain sub judice in court whereas cases related to the killing of journalists Krishna Bahadur Sen and Gopal Giri are pending before the Truth and Reconciliation Commission (TRC), reflecting long delays in transitional justice mechanisms. For the remaining majority of cases, the justice process has not even begun.
Justice delayed, justice denied
According to the research article ‘Understanding journalist killings’ by Sabine C Carey and Anita R Gohdes, published in 2020, journalists are frequently targeted because their reporting exposes corruption, human rights violations, organized crime or other politically sensitive issues that may threaten the power, reputation or interests of local authorities and influential actors. Such reporting can challenge entrenched networks of power, making journalists vulnerable to intimidation, threats or lethal attacks. Interestingly, the majority of these cases do not lead to prosecution, largely due to a combination of factors, including the lack of political will on the part of the state, weak law enforcement, insufficient legal protections and an overall lack of accountability.
Way forward
The way forward to address impunity for crimes against journalists in Nepal begins with recognizing and celebrating the rare successes where justice has been achieved, such as in the cases of Dekendra Raj Thapa, Uma Singh, Birendra Shah and Arun Singhaniya. Next, the processes of TRC and other transitional justice mechanisms must be expedited to resolve pending cases like those of Krishna Bahadur Sen and Gopal Giri. Simultaneously, the justice process should commence for the majority of unresolved killings and disappearances, including long-standing cases such as Milan Nepali, Iswor Budhathoki and Suresh Bhul. Strengthening investigative capacity, shielding judicial processes from political interference, protecting witnesses and prioritizing prosecutions even in remote areas are essential for breaking the cycle of impunity.
The author is a media researcher based in Nepal
FATF retains Nepal in ‘gray list’
The Financial Action Task Force (FATF) has retained Nepal on its Jurisdiction under Increased Monitoring list, commonly known as the gray list, citing persistent strategic deficiencies in the country’s anti-money laundering (AML) and counter terrorist financing (CFT) regime.
Issuing a statement after its plenary session last Friday, the global watchdog said while Nepal made a high-level commitment to strengthen its AML/CFT framework earlier this year, the progress has not been sufficient to warrant removal from the gray list. It said Nepal should continue to work on implementing its action plan to address its strategic deficiencies.
After the plenary, the FATF has said that Nepal most improve its understanding of money-laundering and terrorist-financing risks remains limited; enhance supervision of higher-risk sectors such as banks, cooperatives, casinos, real-estate and dealers in precious metals and stones; and demonstrate the identification and sanctioning of materially significant illegal hundi providers without affecting financial inclusion.
Additionally, Nepal has been told to increase capacity and co-ordination of competent authorities to conduct money laundering investigations; demonstrate an increase in such investigations and prosecutions; demonstrating measures to identify, trace, restrain, seize, and, where applicable, confiscate proceeds and instrumentalities of crime in line with the risk profile; and address technical compliance deficiencies in its targeted financial sanctions regime for terrorism financing and proliferation financing.
Nepal had previously exited the gray list back in 2014 after a roadmap of reforms was implemented. Earlier in February, the government had signaled strong political commitment to bolster its AML/CFT systems. Despite some legislative progress, implementation has remained uneven and structural reform has lagged. In particular, Nepal's regulatory oversight of non-financial businesses, beneficial-ownership transparency and enforcement action remain deficient.
About three years ago, the Asia Pacific Group on Money Laundering (APG) conducted a Mutual Evaluation Report on Nepal’s system for preventing money laundering and terrorist financing, and submitted its findings to the Financial Action Task Force (FATF).
The APG’s annual plenary meeting, held in Vancouver, Canada, from 9-14 July 2023, endorsed Nepal’s mutual evaluation report. Based on that assessment, the FATF in Oct 2023 placed Nepal under a one-year observation period. During the assessment, it identified 40 areas for improvement.
Nepal was expected to implement the FATF’s recommendations and demonstrate progress sufficient to avoid being placed on the gray list during this period. However, the country failed to make significant improvements within the one-year timeframe, leading to its eventual placement on the gray list.
Although being on the FATF’s gray list does not automatically impose sanctions, it acts as a red flag to the international financial community. Banks, foreign investors and correspondent-banks tend to apply heightened due diligence when dealing with entities in gray-listed jurisdictions.
Building trust through strong anti-money laundering and countering the financing of terrorism frameworks will be critical for Nepal as it seeks to maintain international financial credibility and attract foreign capital.
Nepal’s impractical tax exemption policy
The Nepal government has been providing a large amount of economic concessions annually through tax exemptions. The Ministry of Finance has stated that approximately Rs 2.5trn are provided in tax exemptions per year.
Tax exemptions are given in various ways. These include exemptions provided by the relevant laws, the Income Tax Act, the Value Added Tax Schedule, and the annual Economic Act. In particular, there is a practice of providing tax exemptions on value added tax and customs duties in grant or loan agreements under bilateral or multilateral foreign aid.
As mentioned in the 62nd Annual Report of the Auditor General, 2025, Section 18 of the Economic Act, 2023 provides for the Government of Nepal to reduce, increase, or partially or completely exempt from revenue the rates of fees, charges, duties, or taxes imposed by the prevailing law. Similarly, Section 14 and Section 15 of Schedule 1 of the Economic Act, 2023 provide for full or partial exemption of customs duties. According to the Customs Department's data system, it appears that Rs 79.87bn was exempted from customs revenue in 2023/24.
According to the details received from the Ministry of Finance, customs duty and value added tax of Rs 4.87bn were exempted from importing goods under the SAFTA facility. In addition, as per Section 18 (2) of the Finance Act, 2023, the Ministry of Finance has granted revenue exemption of Rs 20bn on import value of Rs 34bn to various ministries, departments, local levels, and corporations, including Rs 6bn, in the last four years. Similarly, as per Section 18 (3), it appears that revenue exemption of Rs 7bn has been granted on goods and goods worth Rs 43bn, subject to the terms of the project development agreement, for projects implemented with foreign loans or grants.
Pointing out that the Ministry of Finance has not kept updated records of the items and amounts exempted from revenue on materials and equipment imported into the facility, the Accountant General has suggested, “The exemption should be granted only if the master list is approved by the relevant project before inviting bids and whether the goods and goods imported into the facility were used in the same project or not. There should also be monitoring and since the scope of revenue exemptions is increasing, its impact should be analyzed and the integrated data of revenue exemptions should be presented to the parliament to promote transparency.”
In addition to the exemptions, the Ministry of Finance and its subordinate bodies have yet to recover Rs 435.22bn in revenue and principal and interest on loans that exceed the limit. Out of this, the revenue arrears are Rs 254.4bn, of which Rs 123.80bn (48.73 percent) have been filed for judicial review by taxpayers, so a large portion of the arrears are under consideration by judicial bodies. The government has been saying that the principal and interest on loans and investments made by public corporations, committees, boards, cooperatives and local levels that exceed the limit is Rs 181.18bn. The Accountant General has been saying that the amounts that exceed the limit, principal and amount, and revenue arrears should be recovered through legal procedures. Stakeholders say that due to non-payment of revenue, apart from the exemptions given by the government, the country is also facing an uncomfortable situation due to additional budget expansion in the education and health sectors.
The government has been giving tax exemptions to target groups as an incentive. According to Pandey, spokesperson for the Ministry of Finance, the main reason for giving tax exemptions is the provision given by the law and the constitution. “The purpose of this is to encourage any industry or business. In addition, incentives are also provided to certain classes and groups. Some exemptions are provided for tricycles and motorcycles used by people with disabilities,” he said. “This system of giving tax exemptions is not to benefit any specific person but is based on the law. Schedules have been placed in the Value Added Tax Act. Which classify taxable, non-taxable and zero-taxable transactions.”
Former Revenue Secretary of the Ministry of Finance, Ram Sharan Pudasaini, suggests that the annual tax exemptions have been misused to some extent and that it has increased inequality, suggesting that tax refunds and budget grants should be used instead. “The government is providing annual tax exemptions worth nearly two and a half trillion rupees through laws and various economic acts. This amount of tax exemption is excessive and there is no control and monitoring over it, which may have led to increased misuse,” he said.
Pudasaini also raised questions about the effectiveness of the tax exemptions currently being given. He commented that there is no analysis, audit or monitoring of whether the justification and purpose of the tax exemptions have been fulfilled and whether the benefits have reached the target group or not. Pudasaini noted that the current technology of granting tax exemptions by decision of the Ministry of Finance or the Council of Ministers is not right and suggests that tax exemptions should be given only in a very limited, targeted, short-term manner and especially in connection with investment and job creation.
The government currently does not have an account of the amount of exemptions given by the schedule of the Value Added Tax Act on daily consumer goods, such as pulses, rice and green vegetables.
Stakeholders have been saying that the state is losing a large amount of revenue annually through tax exemptions. External donor agencies such as the World Bank and the International Monetary Fund (IMF) have also shown concerns regarding the large amount of tax exemptions.
An IMF study has suggested reconsidering the system of tax exemptions given in Nepal on a large scale, says Tanka Prasad Pandey, spokesperson for the Ministry of Finance.
“There are many such long lists of tax exemptions. In the past, there was no exact calculation of how much the government was giving such exemptions. However, the IMF has studied this issue and mentioned detailed details in its report. The study suggests reconsidering the system of tax exemptions given in Nepal on a large scale,” he said.
Germany pledges 39, 000 Euros for flood recovery in Nepal
The Government of the Federal Republic of Germany has pledged an assistance of 39,000 Euros to support communities impacted by the devastating floods of October 2025 in Ilam, Nepal.
Ambassador Udo Volz, on behalf of the Government of the Federal Republic of Germany, signed the grant agreement with Country Director Shakeb Nabi of Deutsche Welthungerhilfe for an Emergency Relief Support Project in Ilam, reads a statement issued by the Embassy of Germany.
The project will assist disaster-affected communities in Ilam district, ensuring lifesaving assistance and enhancing resilience against future disasters.
The project will support households in highly affected areas in Ilam District, with a focus on marginalized groups, women and children. That includes the provision of food as well as essential items such as mattresses, tarpaulins, warm clothes, dignity kits and blankets, according to the statement.
The local implementation partner is Rural Reconstruction Nepal.
The project is slated to be completed by December 2025.
Germany remains committed to supporting the people of Nepal, also in difficult times. During the floods in September 2024, Germany provided 100, 000 Euros for disaster response, dedicated to relief efforts in Sarlahi and Rautahat Districts, implemented by One Heart Worldwide.
Migratory birds start arriving in Nepal (With photos)
With the end of monsoon season, colder air has started to move into the country. Migratory birds have arrived in Nepal along with this cold weather.
More than 100 species of birds migrate to Nepal every year. Most of them are waterfowl and ducks. Other birds like eagles, hawks and vultures also arrive in Nepal searching for favorable weather.

So far, more than 900 species of birds have been recorded in Nepal.
Many species of birds’ rest in Nepal before going to other countries, while small crane species, locally known as Karyangkurung, do not rest in Nepal but fly directly to India.

Birds that come to Nepal during the winter season prefer to stay in large rivers and lakes like Koshi, Karnali, Narayani, Rapti, Fewa Lake, Jagadispur Lake, Ghodaghodi Lake, and Barju Lake.
Here are the photographs of some migratory birds taken in various lakes and rivers in different places of Nepal.














Nepal-India common Chhath ghat constructed at Bagahi
A joint Nepal-India Chhath ghat has been constructed along the Bigahi River located on the border of Mahottari and Dhanusha.
An attractive ghat, about two kilometres long, has been constructed on the bank of the Bigahi River, for convenience of the devotees observing the Chhath festival on October 27.
Matihani Municipality Mayor Hari Prasad Mandal said that the Chhath ghat has been constructed for the residents of Wards 6, 7, and 8 of Matihani Municipality in Nepal, Tulasiyahi of Mukhiyapatti Musaharnia Rural Municipality–3 in Dhanusha, and for the locals in Madhawapur and Rampur areas in India.
He stated that although they live in separate countries, citizens of Nepal and India have been constructing a common Chhath ghat as they practice shared religion, culture, festivals, marital traditions and joys and sorrows.
"The no-man's land has separated our two countries, but our costumes, language, culture and festivals are the same. There is a culture of celebrating cultural festivals together, and this ghat is an example of that," said Mayor Mandal.
Citizens from Matihani and Tulasiyahi in Nepal and Madhawapur and Rampur in India have come together to decorate this shared ghat between Nepal and India.
Jit Narayan Majhi, the Chairman of Matihani, Ward 7, said that more than two thousand devotees from both countries are expected to perform the Chhath Arghya rituals at this ghat and over ten thousand devotees will be present to observe the festival.
During this festival, devoted to the worship of the Sun god and the goddess Shashti Devi (commonly called Chhathi Devi), the fasting devotees will offer 'arghya' to the setting sun on the evening of Kartik Shukla Shashthi which falls on October 27 and to the rising sun on the morning of Saptami on October 28, after bathing at this very ghat.
Nepal exported 1,015 megawatts of electricity on Laxmi Puja
The country exported 1,015 megawatts of electricity on Monday, the day of Laxmi Puja of the Tihar festival.
According to the Nepal Electricity Authority (NEA), the total demand for power reached 1,650 megawatts on Monday evening.
The NEA stated that the highest demand for power in the evening of Laxmi Puja was 1,602 megawatts last year. This year's demand was 48 megawatts more compared to last year.
Currently, Nepal is exporting its surplus energy to the Indian and Bangladeshi markets.
Nepal clinch ICC Men's T20 World Cup Asia and East Asia-Pacific Qualifier title
Nepal clinched the ICC Men's T20 World Cup Asia and East Asia-Pacific Qualifier title.
The national team remained undefeated throughout the tournament and clinched the title with a commanding 124-run victory against Samoa in the final match held today at the Oman Cricket Academy Turf-1 in Al Amarat.
Batting first after losing the toss, Nepal posted a massive total of 211 runs at the loss of four wickets in the allotted 20 overs.
Chasing the target of 212 runs, Samoa managed to score just 87 runs at the loss of seven wickets in their 20 overs.
Aasif Sheikh led the scoring for Nepal with 69 off 41 balls, hitting seven fours and four sixes. Dipendra Singh Airee also impressed with 53 runs off 33 balls, including two fours and four sixes. Lokesh Bam added 39, captain Rohit Paudel remained not out with 21, and Kushal Bhurtel contributed 17 runs. For Samoa, Daniel Brugess, Saumani Tiai, Darius Visser, and Noah Mead claimed one wicket each.
In Nepal’s bowling effort, Lalit Rajbanshi took three wickets, while Karan KC, Sandeep Lamichhane, and Rohit Paudel took one each. Samoa's top scorer was Sean Solia with 40 runs.
Before the final, Nepal had an impressive run in the tournament. In the group stage, they defeated Kuwait and Japan. During the Super Six round, Nepal defeated the UAE by one run, beat Qatar by five runs, and overcame Oman by 38 runs.
With this win, Nepal, along with the UAE and Oman, have qualified for the ICC Men’s T20 World Cup, which will be jointly hosted by India and Sri Lanka from February 9 to March 8, 2026.















