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As Nepal faces escalating climate uncertainty, the need for robust data systems and transparent frameworks has never been more urgent. Climate change is no longer a distant threat—it is a present-day challenge that affects every sector, from agriculture and water resources to energy, health and infrastructure. Rising temperatures, erratic weather, and more frequent climate-related disasters are already disrupting livelihoods, increasing social vulnerability, and hindering national development. 

 To respond effectively, Nepal must strengthen its capacity for evidence-based planning, transparent governance, and adaptive management. Measurement, Reporting, and Verification (MRV) systems are critical in this process. They enable the systematic collection, analysis, and reporting of climate data, allowing stakeholders to track the effectiveness of mitigation and adaptation actions and refine strategies over time. MRV systems also foster accountability and build trust among government bodies, development partners, the private sector, and local communities by providing credible, transparent information on climate progress. A well-functioning MRV framework is increasingly required to access international climate finance, including from mechanisms like the Green Climate Fund (GCF), which demand verifiable proof of impact. Strengthening MRV is not just a technical necessity but a strategic investment in Nepal’s climate-resilient, low-carbon future. By grounding policy in reliable data and continuous learning, Nepal can enhance the credibility of its climate actions, attract sustainable investment, and protect both its people and ecosystems for the long term. 

 What is MRV and why does it Matter?

At its core, Measurement, Reporting, and Verification (MRV) is a fundamental process that underpins effective climate governance. It encompasses three interrelated functions: systematically collecting data on greenhouse gas (GHG) emissions and climate-related activities; reporting that information in a consistent, transparent, and standardized format; and verifying its accuracy through independent assessment or third-party review. These processes.

ensure the integrity and credibility of climate data, which is essential for informed decision-making and adaptive management. A well-designed and operational MRV system empowers countries to track progress toward their climate targets, assess the effectiveness of mitigation and adaptation policies, and maintain accountability in the deployment of climate finance. It also provides a basis for aligning national actions with international commitments, including the goals outlined in the Paris Agreement. 

For Nepal, MRV is far more than a bureaucratic requirement—it serves as a strategic instrument for advancing national climate priorities. A credible MRV system builds confidence among development partners and international donors, making it possible to mobilize and scale up climate investments from global mechanisms such as the Green Climate Fund (GCF) and the Adaptation Fund. It also strengthens the capacity of domestic institutions to coordinate across sectors, evaluate climate risks, and refine policies based on measurable outcomes. Without a reliable and transparent MRV framework, Nepal risks not only falling short of its Nationally Determined Contributions (NDCs) but also missing critical opportunities to demonstrate leadership, attract financing, and protect vulnerable communities from the accelerating impacts of climate change. Investing in MRV is, therefore, an investment in trust, resilience, and long-term development. 

The current landscape: progress and gaps

Nepal has taken commendable early steps toward institutionalizing its MRV system. The Ministry of Forests and Environment (MoFE) has been officially designated as the Single National Entity (SNE) responsible for coordinating all MRV-related activities. Within MoFE, a dedicated MRV Unit has been established under the Climate Change Management Division (CCMD), reflecting a clear intent to build a structured, functional, and responsive climate data architecture. Key roles have been outlined for unit heads, data analysts, and sectoral focal points, signaling a foundational move toward operational coherence and inter-agency collaboration. While the vision is ambitious, implementation remains a work in progress. MRV coverage across sectors—energy, agriculture, forestry, waste, and industry—is currently fragmented and uneven. In some sectors, such as forestry and agriculture, data systems are improving, but still lack harmonized methodologies or standardized emission factors. Others, particularly waste and industry, suffer from outdated or incomplete inventories and weak institutional linkages.

Several persistent challenges impede the full realization of an integrated MRV system. A critical gap is the lack of standardized baseline data for both emissions and adaptation indicators, which hampers the ability to measure real progress or assess effectiveness. Data fragmentation is common, with different agencies collecting information in silos without common reporting formats or interoperable databases. Overlapping mandates among ministries, unclear delineation of responsibilities, and limited coordination further exacerbate inefficiencies.

At the subnational level, capacity constraints are even more pronounced. Provincial and local governments often lack trained personnel, adequate funding, and technological tools to collect, process, and report climate data reliably. The flow of information between national and subnational levels remains inconsistent, undermining efforts to build a bottom-up MRV structure that reflects local realities. The absence of a strong legal and policy mandate for MRV weakens the authority of the system as a whole. Without binding legal provisions, enforcing reporting obligations or ensuring data quality becomes difficult. This limits the country’s ability to produce credible, verifiable data necessary to access climate finance, influence policy development, and track NDC implementation. To close these gaps, Nepal must prioritize the development of a comprehensive legal framework that mandates MRV obligations across sectors and levels of government. Standard operating procedures, capacity-building programs, and interoperable digital platforms will also be essential. With sustained political commitment and strategic investment, Nepal can transform its MRV system from a foundational concept into a powerful engine for climate accountability, transparency, and ambition. 

Integrating MRV with the Biennial Transparency Report

To comply with its international obligations under the Paris Agreement, Nepal is required to submit a Biennial Transparency Report (BTR). This reporting framework is central to the Enhanced Transparency Framework (ETF) of the Paris Agreement and includes several critical components:

● A national inventory of greenhouse gas (GHG) emissions, covering all major sectors such as energy, agriculture, land use, waste, and industry; 

● Progress tracking toward achieving the country’s Nationally Determined Contribution (NDC) targets, including sectoral mitigation actions; 

● Adaptation communication, which outlines how the country is responding to climate risks and building resilience across vulnerable communities and ecosystems; 

● Reporting on support received, particularly in the form of climate finance, capacity-building initiatives, and technology transfers from international partners. 

Delivering on these requirements demands more than just emissions accounting—it requires integrated, multi-dimensional MRV systems capable of capturing, analyzing, and communicating diverse types of climate-related data. For example, Mitigation MRV tracks greenhouse gas (GHG) emission reductions across key sectors using internationally accepted methods. It shows how policies like renewable energy expansion, energy efficiency, and sustainable land use contribute to emission cuts.

Adaptation MRV focuses on resilience, monitoring indicators such as reduced climate-related losses, improved food and water security, and better disaster preparedness. Support MRV ensures transparency in climate finance, capacity-building, and technology transfer. It tracks how resources are used, evaluates their impact, and builds trust with donors and stakeholders. Integrating these three strands—mitigation, adaptation, and support of MRV—into a cohesive system will strengthen Nepal’s credibility on the global stage, improve access to international climate finance, and help guide strategic decision-making at home. A robust MRV architecture not only fulfills reporting obligations but also becomes a critical tool for steering climate-compatible development in Nepal.

What Needs to Be Done?

1. Legal and institutional reform: Nepal must legally recognize the MRV framework and clearly assign roles across central, provincial, and local governments. Embedding these responsibilities in climate policies and regulations will strengthen enforcement, coordination, and long-term sustainability. 

2. Capacity building: Sustained training is essential for government staff, technical experts, and non-state actors. Skills must extend beyond data collection to areas like GHG inventories, statistical modeling, climate risk assessment, and gender-responsive reporting. 

3. Digital infrastructure and data sharing: A centralized, interoperable digital MRV platform is needed to collect, validate, and analyze real-time data across sectors. Standardized formats, open-access dashboards, and strong data protection will enhance transparency and efficiency. 

 4. Stakeholder coordination: Clear roles, reporting timelines, and performance indicators must be defined for all institutions. Strengthening collaboration among national, provincial, and local actors—along with civil society and the private sector—will improve data quality and inclusiveness.

5. Donor alignment and trust: A robust MRV system demonstrates Nepal’s commitment and builds confidence with international partners. Meeting global reporting standards, like the Biennial Transparency Report (BTR), will improve access to climate finance and technical support.

 The Way Forward

Climate change poses one of the greatest challenges in Nepal’s development journey—but it also presents a unique opportunity to build more transparent, data-driven, and resilient institutions. A well-functioning MRV system is not just a reporting tool—it is a strategic asset that enables the country to measure progress, guide investments, and deliver real results for communities and ecosystems.

To translate commitments into outcomes, Nepal must treat MRV as a national development priority. Strengthening MRV systems is a prerequisite for unlocking climate finance, meeting Nationally Determined Contribution (NDC) targets, and achieving a just and inclusive transition to a low-carbon economy. By institutionalizing MRV with legal backing, investing in digital tools, and fostering a culture of collaboration and accountability, Nepal can move from aspirational promises to measurable climate action—demonstrating both to its citizens and to the international community that it is serious about building a sustainable future.

(Budhathoki is a development professional based in Kathmandu, focused on climate change, climate finance, and governance.)

Nepal imported goods worth Rs 434. 43 billion from India via Birgunj in the last 11 months of the current fiscal year 2024/25.

According to Deepak Lamichhane, the Chief Customs Administrator of the Birgunj Customs Office, the majority of import and export through this border is with the neighbouring country, India.

Argentina comes in second place after India in terms of imports through this check point. 

Many goods and commodities are imported from Argentina. 

In the current fiscal year, goods and commodities worth Rs 46.74 billion have been imported from Argentina. The share of goods imported from that country is 8.27 percent.

Similarly, goods worth Rs 28.86 billion have been imported from the northern neighbour China during the same period. The share of imports from China is 1.22 percent.

In the 11 months of the current fiscal year, goods and products worth Rs 565. 42 billion  have been imported from 50 countries at the Birgunj border.

Similarly, goods and items worth Rs 91. 51 billion have been exported to foreign countries through the Birgunj border in the last 11 months of the current fiscal year. During this period, goods and items worth Rs. 86. 97 billion  have been exported to India through this border. This volume of export to India comprises 95.05 percent of total export trade volume through Birgunj customs. 

America comes in second place in terms of volume of exports through Birgunj during the same period. 

Goods and products worth Rs 2.18 billion have been exported to America, which is 2.38 percent of total exports.

Similarly, goods worth Rs 680 million have also been exported to Afghanistan through this border customs checkpoint during the same period.

Nepal-Pakistan Children Park was inaugurated at Ward No. 8, Budhanilkantha Municipality. The park was jointly developed by the Embassy of Pakistan in Kathmandu and Budhanilkantha Municipality. Ambassador Abrar H Hashmi and Mayor Mitharam Adhikari attended the ceremony along with representatives from local government, civil society, and the community.

Hashmi appreciated the partnership with Budhanilkantha Municipality for the renovation of Nepal-Pakistan Children Park as well as the Embassy team for upgrading and the beautification of children park play station, swings and a new walking track, a space for all ages. “The park features upgraded play equipment, swings, and a walking track, providing a recreational space for all age groups. It was dedicated to the children of the Golfutar community as a gift from the people of Pakistan,” the Embassy said in a statement. This is the third park renovated by the Embassy in the past three years in partnership with local municipalities.

At 10:30 am, Dundrup Tsering, a businessperson from Nepal, waited at Lektse Port in the city of Xigaze, southwest China's Tibet Autonomous Region, carrying two large bags. “I’ve been doing business here since the opening of the port in Nov 2023, and my family’s living conditions have improved significantly,” said Dundrup Tsering.

In the past, traders set up stalls at traditional border trade points under simple tents with no fixed locations. Their goods were often damaged by rain or snow, and access to basic facilities like toilets was a constant challenge. The opening of the port and the completion of a modern trade market have significantly improved conditions. “We have moved into a proper market with better conditions. It is more convenient and rent-free,” said Dundrup Tsering. “My family had almost no income before the port opened. Now we no longer worry about food or clothing.”

Beyond boosting employment, the new and reopened ports along the China-Nepal border have accelerated regional cross-border trade. “Our products are specifically designed for Nepal’s needs,” said Jiang Zhengguang, chairperson of a machinery company located approximately an hour’s drive from the port of Gyirong.

In the company’s four bright and tidy workshops, workers were busy producing vehicles for export. “We’ve developed innovative new energy vehicles (NEVs) for Nepal’s rugged mountain roads, steep slopes, and high load requirements,” Jiang added. “Nepali customers said that our vehicles offered top-tier quality and performance. We expect annual exports to exceed 2,000 units.”

With the reopening of the ports of Zham, Gyirong and Burang in 2023, NEVs can now reach Nepal from manufacturing hubs within ten days. From January to May this year, Xizang’s import-export volume with Nepal reached about $249m, up 14 percent year on year, according to Lhasa Customs.

To facilitate trade, Lhasa Customs has established a green channel, supporting 24-hour advance declarations, and providing one-on-one assistance. Exports of NEVs, local wool, and fresh fruits are increasing, while imports of Nepalese medicinal herbs and silage fodder continue to diversify as more categories gain market access.

Since 2021, Xizang’s trade with South Asian Association for Regional Cooperation (SAARC) members has totaled $2.08bn, with Nepal accounting for 87 percent. The land ports between China and Nepal have played a vital role.

The ceasefire brokered by US President Donald Trump between Israel and Iran has offered some respite to the Nepal government, which had been scrambling to rescue its citizens from the two countries. As tensions escalated, nearly 1,000 Nepalis in Israel had expressed desire to return home. 

Had there been no ceasefire, the fallout would likely have extended beyond Israel and Iran, affecting Nepali workers across the entire Middle East (West Asia for Nepal).

Iran’s strike on the American military base in Qatar had already sparked panic among the Nepali workers. Qatar hosts around 365,000 Nepali migrant workers.  Whenever a conflict erupts in the Middle East, Nepal bears the brunt. Hundreds of thousands Nepalis are working in the region, and the remittances they send home are a backbone of Nepli economy. If these workers were to return from the labor destination countries in droves, remittances would dry up. Soon, there would be an unemployment crisis. Prolonged conflict in the Middle East could also cause shortages or price hikes of petroleum products.

At the time of writing, Iran and Israel—despite agreeing to the truce—continue to exchange fire. At this uncertain time, the safety and security of Nepali workers in the Middle East must be the government’s prime concern. It should face the reality of the situation and come up with a proper strategy to evacuate its citizens in the event of an emergency. It should start by strengthening the presence of Nepali embassies. For long, Nepali embassies not just in the Middle East but around the world have been grappling with insufficient resources. Many embassies are short-staffed and are thus unable to coordinate an emergency mission. Worse, they do not have information about the number of its citizens.

According to the Ministry of Foreign Affairs, the top nine destinations for Nepali migrant workers are Malaysia (700,000), Saudi Arabia (400,000), Qatar (365,000), the UAE (250,000), Kuwait (70,000), South Korea (40,000), Bahrain (25,000), Oman (20,000) and Israel (3,000).

Foreign relations experts suggest it is high time Nepal increased its reach and presence in those countries with a high number of Nepali migrant workers. A long-term peace in the Middle East is still a shaky prospect, so the government should explore alternative job destinations as well as prioritize domestic job creation.   

US President Donald Trump has accused the two countries of violating a ceasefire hours after he announced it, expressing particular frustration with Israel, which had announced plans for major new strikes on Tehran.

“Israel, as soon as we made the deal they came out and they dropped a load of bombs, the likes of which I’ve never seen before,” he said as he departed Washington for a NATO summit in the Netherlands. “The biggest load that we’ve seen.”

The Ministry of Foreign Affairs has said that two of the 16 Nepalis in Iran were evacuated from Mashhad to New Delhi. We express our sincere gratitude to the Government of India for facilitating the evacuation process, said the ministry.  Efforts are underway to evacuate the remaining 14 Nepalis, according to the ministry.  Over 950 Nepali nationals in Israel have registered expressing their interests to return to Nepal but the ministry is yet to initiate the process of evacuation from there.

Nepal has been named one of the world’s top destinations for solo adventure travel in 2025, according to a new guide released by Much Better Adventures, a UK-based travel company specializing in small group adventures.

As solo travel gains momentum—with a 23 percent rise in searches for active solo holidays over the past year—Much Better Adventures unveiled its expert-led ranking of the top 25 countries for independent adventurers. Nepal secured the seventh spot on the global list, praised for its dramatic landscapes, iconic treks, and affordability.

Home to the world’s highest peaks and famed trails like the Sagarmatha Base Camp and Annapurna circuits, Nepal offers once-in-a-lifetime experiences for solo travellers. The country also appeals to budget-conscious adventurers, with an average meal cost of just £1.4 and a high biodiversity index.

Kirsty Holmes, content manager at Much Better Adventures and a recent solo traveller to Nepal, highlighted the country’s welcoming culture: “While it’s undeniable that arriving into Nepal is a sensory overload, you’ll soon find that the welcoming nature of Nepalis makes this a fantastic place to travel solo.”

Italy topped the index, followed by Japan and Norway. Other countries in the top 10 include Spain, Albania, Portugal, Montenegro, Jordan, and Greece. The guide was compiled using a mix of expert recommendations and data-driven insights, including safety, affordability, biodiversity, and tour ratings. The team also analyzed the Global Peace Index, cost of living data, visa access, and tourism infrastructure.

Sam Bruce, CMO and co-founder of Much Better Adventures, said Nepal offers a rare mix of adventure, hospitality, and accessibility: “It’s remarkably affordable and safe, but what truly stays with you is how welcoming and open the people are, from the vibrant streets of Kathmandu to the peaceful teahouses high in the Himalayas.”

Nepal- Pakistan Parliamentary Friendship Group on Thursday held an interaction with Ambassador of Pakistan to Nepal Abrar H. Hashmi. The interaction was attended by members of group, diplomats from Pakistan Embassy and Nepal-Pakistan Friendship and Cultural Association.  

Speaking on the occasion, Hashmi appreciated the longstanding and cordial relations between Pakistan and Nepal, rooted in shared cultural heritage, mutual respect, and regional affinity. He highlighted the deep people-to-people linkages and reiterated Pakistan’s desire to further expand relations between the two Parliaments and bilateral cooperation in trade, tourism, education, health, culture, climate resilience, according the press release. 

The Ambassador also briefed the Parliamentary Friendship Group on the latest developments in Pakistan’s economy and regional situation, emphasizing Pakistan’s vision for a peaceful and prosperous South Asia. He welcomed the interest of the Nepali Parliament in fostering parliamentary diplomacy and institutional linkages.

Members of the Pakistan-Nepal Parliamentary Friendship Group expressed appreciation for Pakistan’s consistent support to Nepal and expressed satisfaction over relations free of irritants and underscored the importance of parliamentary exchanges in deepening mutual understanding. They also emphasized exploring new avenues of collaboration, particularly economic, cultural, youth, women, marginalized groups, technical support and capacity-building.

Millions of people worldwide, including in Nepal, are unable to have the number of children they desire—not due to a lack of interest in parenthood, but because of growing economic and social constraints, according to the UNFPA’s 2025 State of World Population report titled “The Real Fertility Crisis: The Pursuit of Reproductive Agency in a Changing World.”

Based on data from 14 countries, including Nepal, the report finds that one in five people globally are not having the number of children they want. The reasons include high living costs, job insecurity, unaffordable housing and childcare, lack of reproductive health services, and concerns over global crises such as climate change and conflict.

In Nepal, despite a preference for two or more children, actual fertility has declined to two children per woman across all demographics. Provinces such as Bagmati and Gandaki, which are more urbanized, show a significant mismatch between desired and actual family size due to economic and social pressures. Labor migration, lack of affordable childcare, and gender norms also contribute to this gap. “Some people are prevented from parenthood while others are forced into it,” said Won Young Hong, UNFPA Representative in Nepal. “This is not about overpopulation or declining fertility—it’s about creating an enabling environment for reproductive choices.”

Globally, over 50 percent of survey respondents pointed to economic issues as key barriers to having children. In Nepal, urbanization, rising costs, and the absence of flexible work policies are making parenthood less feasible, especially for young couples. The report also notes a significant number of people over 50 saying they didn’t achieve their desired family size, and that in regions like Madhesh, many report having more children than planned—both signs of limited reproductive agency.

UNFPA identifies gender inequality as a core issue. In Nepal, caregiving duties fall mostly on women, while men often face stigma for playing nurturing roles. Lack of gender-friendly policies, such as parental leave and flexible work, perpetuate unequal parenting responsibilities.

“This is not just a women’s issue,” the report stresses. It highlights how young men, especially those with less education or economic security, are increasingly unpartnered and socially isolated, contributing to a growing global crisis of loneliness and fractured family structures.

Hanaa Singer-Hamdy, UN Resident Coordinator in Nepal, urged a shift from fear over fertility rates to empowering individual choice. “People need economic security and rights-based policies—not coercive measures,” she said.

Health Ministry Secretary Dilliram Sharma emphasized that Nepal’s focus should be on inclusive development through informed reproductive choices. National Planning Commission member Prof. Dr RP Bichha added that population policies should prioritize quality of life and youth productivity.

The report warns against coercive measures like fertility targets and cash incentives, advocating instead for policies that expand access to quality reproductive health services, paid parental leave, affordable childcare, and comprehensive sexuality education. As Nepal faces the prospect of one in five people being over 60 by 2071, UNFPA urges investments in gender-equal, choice-driven policies to secure its demographic future.

It has been more than two months since the inauguration of the World Expo in Osaka, Japan, but Nepal’s pavilion remains unopened. The expo, which began on April 13, will continue until October 13.

Construction was delayed due to negligence on the part of key line ministries, namely the Ministry of Industry, Commerce and Supplies, and the Ministry of Foreign Affairs. The delay stems from a protracted dispute between government agencies and the contractor. Despite selecting a private company for the project two years ago, poor coordination and unresolved issues have prevented its timely completion.

A government official described the situation as an embarrassment for Nepal, noting that 157 of the 158 participating countries have already opened their pavilions and are actively engaging with visitors and investors. “This has exposed Nepal’s governance failure on the global stage,” the official said, adding that preparations for the pavilion had started two years ago. Government officials put blame on the Ministry of Foreign Affairs for the entire delay. 

The government is blaming the contractor for the delays. Japanese and international media have begun reporting on Nepal’s lagging progress. Although the contractor, who had halted work, resumed construction just a week ago, it is still unclear when the pavilion will be completed.

This week, the Japanese Association for International Expositions confirmed that construction of Nepal’s pavilion has resumed. Japanese media report that work was suspended in January due to non-payment. Nepal has now assured the Japanese side that construction will be completed within a month.

Two months into the expo, ticket sales are rising steadily. Organizers say daily visitor numbers are increasing, with the reservation website often crashing around midnight due to high demand for slots at popular pavilions and events. Unfortunately, Nepal is missing out on this vital window for exposure and engagement. Since opening on April 13, the expo has sold approximately 3.75m tickets, which is nearly 30 percent of the 13.44m total sold since ticket sales began in November 2023 through June 6. 

Nepal defeated host Scotland by two wickets in the match held in Glasgow, Scotland on Tuesday under the T20 Tri-Nation Series. 

Nepal achieved the moderate target of 98 runs posted by Scotland in 19.5 overs with eight wickets down. 

To steer Nepal to victory, opener Kushal Bhurtel contributed 30 runs. Likewise, Dipendra Singh Airee gathered 14 runs, Basir Ahamad 13 and Kiran Thagunna 10 while other batters could not score in double digits. 

Put to bat first in the third match of the Series, Scotland were restricted to a meagre 97 runs at the loss of all wickets. 

Nepal's leg spinner Sandeep Lamichhane took four wickets for 18 runs including a maiden in his full quota of four overs. Karan KC and Dipendra Singh Airee took two wickets each while Lalit Rajbansi took one wicket.

For the home team, only three batsmen could score in double digits, the highest being 46 runs by Michael Leask, Brandon McMullen scored 10 runs while captain Matthew Cross scored 15 runs before he was bowled out to Lamichhane..

With the performance in the match, Karan KC has registered 100 wickets in T20 International Cricket. He is the second after Lamichhane to make the record. 

Lamichhane was declared the 'player of the match' .today. 

With the federal budget for the upcoming fiscal year announced, it is crucial to review the transparency of the system by which the budget is made. Budget formulation and public finance management systems in Nepal have undergone significant changes in recent years, especially after the implementation of federalism in 2015. Participatory budgeting and public accountability are repeated themes in every budget announcement. Political parties boast of presenting citizen-centric budgets that promise to improve governance quality and address corruption. While the Ministry of Finance has made attempts to deliver on these claims, gaps still remain.

In a survey conducted by the International Budget Partnership (IBP) in 2023, Nepal was ranked 58th out of 125 countries for budget transparency, displaying moderate performance in public access to credible budget information. While this performance is relatively better compared to other South Asia countries, it falls short of standard international benchmarks. During six rounds of IBP surveys between 2010 and 2023, Nepal’s budget transparency score averaged 42, consistently remaining below the ‘sufficient score’ of 61. 

Untimely and limited disclosure of key budget documents, combined with the absence of a citizens’ budget, and limited public participation in budget formulation, are key bottlenecks that keep the country’s budget transparency low. 

Political interference in the budget-making process is another factor that impedes transparency. Rent-seeking behaviour and political lobbying to alter tax rates in favour of interest groups are not uncommon in Nepal. In 2022, the then-finance minister, Janardan Sharma, had to temporarily resign following allegations that he had employed two unauthorized persons to tweak tax rates the day before the 2022-23 budget was presented. In 2023, allegations emerged that information about tax increases on electric vehicles was leaked to car dealers, who then rushed to bring the cars into Nepal before the budget was presented. In both instances, the finance ministers were given a clean chit. Such instances significantly dent the country’s image on budget transparency internationally. 

In addition to the above factors, a major driver of Nepal’s poor budget transparency is low public accountability. Citizens possess limited knowledge of the budget-making process and public financial management (PFM) systems, resulting in low budget literacy levels in the country. 

This knowledge gap is driven by the complexity of our PFM system and the scarcity of resources for citizens to learn about Nepal’s budget management. 

The World Bank’s Third Public Expenditure and Financial Accountability Assessment assigns Nepal a ‘C’ rating regarding access to fiscal information, highlighting large gaps in the availability of critical public finance data. Implementing federalism has further layered PFM processes, increasing the already wide public fiscal knowledge gap. And during this time, there have been limited initiatives by the government to educate taxpayers about how public money is being raised and spent.

The above discussion does not mean that a complex fiscal system is an unwanted system. Complexity can ensure accountability, improve public participation and establish best practices for fiscal management. However, it should be complemented by enhancing public knowledge of how fiscal systems work in the country. Taxpayers should get to know how their tax money is being spent and how effectively the government is utilizing the funds to deliver welfare outcomes. As sub-national governments now bear significant expenditure responsibilities, public fiscal education has become particularly important. It can empower the masses to hold their electorates accountable and enable them to demand services that sub-national governments are constitutionally mandated to provide. 

Research from the World Bank suggests that there is a systematic relationship between budget literacy and budget transparency. Budget literacy initiatives can effectively close the budget transparency feedback loop by enhancing the citizens’ capacity to analyze their government’s fiscal data and scrutinize budgets. Research also confirms that participatory budgeting is strongly associated with a reduction in extreme poverty and an increase in access to basic services. 

While several initiatives exist that can enhance budget literacy, there are a few practical ones that are feasible in Nepal’s context. Two important interventions stand out: one, publishing a citizen’s budget that presents and summarizes key budget information in a less technical, easy-to-understand format (a practice many countries undertake); two, introducing budget literacy components in education curricula to build an understanding of public finance management among students and youth. The IBP has consistently urged Nepal to adopt these interventions, particularly the publication of a citizens’ budget, as a crucial step toward improving budget literacy.

Other potential interventions include creating interactive online platforms that act as a single-source-of-truth for public finance data, conducting awareness programs at the community level, and undertaking extensive consultations with civil society for budget formulation. These interventions have the potential to significantly enhance Nepal’s fiscal transparency and bring its scores in line with international standards.

Public accountability starts with education. We need to proactively learn about the country’s fiscal system and empower ourselves to constructively criticize the government in cases of failures and inefficiencies. Key government stakeholders—the Ministry of Finance, the Office of the Auditor General, Public Expenditure and Financial Accountability Secretariat, and others, need to build the enabling frameworks. Think tanks and development agencies need to enhance their role in reporting on Nepal’s public finance management and help bridge the knowledge gap. Generating public interest in this critical but often overlooked field is important as we enter the new fiscal year, and all stakeholders must play their part to this end.

Madhes Province contributes between 22 to 25 percent to Nepal’s overall food security and possesses immense potential in agriculture. Despite its fertile land and favorable conditions, the sector remains neglected due to low investment and a lack of governmental priority. The province boasts 574,360 hectares of cultivable land, with 83 percent of it already irrigated. However, progress has been stifled by the limited availability of improved seeds, irregular supply of fertilizers, and the failure to modernize and adopt agricultural technologies.

In the fiscal year 2024/25, the Madhes Province Government allocated only five percent of its total budget to agriculture. Out of the total provincial budget of over Rs 43.89bn, just Rs 2.57bn was allocated to the Ministry of Land Management and Agricultural Cooperatives. Even more concerning, with only a month left in the fiscal year, just 16 percent of the ministry’s budget had been spent. “Madhes Province is exceptionally fertile and has the potential to become the country’s food bank, but the government has not prioritized agriculture, and therefore, we’ve failed to achieve the desired results,” says Umesh Dahal, Secretary at the ministry. He adds that while infrastructure projects receive significant attention and funding, agriculture continues to be sidelined, which prevents the sector from advancing.

Although Madhes accounts for 19.2 percent of Nepal’s total agricultural output, efforts toward mechanization remain weak. The provincial government has announced plans to integrate agriculture more prominently into the fiscal year 2025/26 policy framework. Initiatives such as the ‘Madhes Feeds the Country Campaign’, ‘Farmer’s Garden, Volunteer’s Umbrella’, and ‘Your Garden, Madhes’s Prosperity’ aim to transform the sector. The government has also proposed programs like ‘one district, one cold storage’ and ‘one district, one custom hiring center’, along with continued efforts toward agricultural electrification and processing of farm produce.

However, these plans risk remaining mere slogans if not backed by adequate budget and implementation strategies. Provincial Assembly Member Mala Raya voices her skepticism, stating, “The government has brought many slogans in the agricultural sector, but I don’t think there’s a clear plan to implement them meaningfully—it’s just a bunch of talk.”

Madhes Province already plays a major role in producing key crops and holds potential to reduce Nepal’s dependency on imports. The province produces 5,486,472 tons of paddy annually across 1,447,789 hectares, contributing 25 percent to national production. With Nepal requiring 6,042,341 tons of rice annually and importing 555,839 tons, Madhes could significantly cut import dependency by expanding Chaite rice cultivation on an additional 189,000 hectares.

Similarly, maize is cultivated on 940,256 hectares in the province, producing 2,976,490 tons and contributing 6.4 percent to national output. Given Nepal’s annual maize demand of 3.41m tons and imports totaling 435,217 tons, Madhes has the potential to expand maize farming by 87,000 hectares to meet domestic needs.

Wheat is grown across 697,762 hectares, yielding 298,462 tons—32 percent of the country’s total production. With a national demand of 2.75m tons and imports of over 654,000 tons, Madhes could further increase wheat production to enhance self-sufficiency.

Mango farming is another area of strength. Cultivated on 42,773 hectares, mangoes from Madhes account for 5,120,055 tons, contributing 77 percent to national production. Sugarcane, grown on 62,833 hectares, yields 3,130,109 tons—66 percent of total output. Oilseed crops cover 2.44m hectares, producing 2.74m tons and contributing 22 percent nationally. Pulses are grown over 2.96m hectares, with a total production of 3.44m tons, or 37 percent of the country’s output.

Bananas are cultivated on 24,286 hectares, yielding 88,745 tons—21 percent of national production. The province is also a major contributor to fish farming, producing 82,261 tons from 14,745 hectares, which accounts for 57 percent of Nepal’s total fish production. However, despite these strengths, Madhes lags in dairy production, contributing only 18 percent (4,758,700 tons) to the national total.

While Madhes Province remains a cornerstone of Nepal’s agricultural output, without strategic investment, proper implementation, and prioritization by the government, its true potential may remain unrealized.

Nepal Electricity Authority (NEA) has resumed exporting 40 megawatts of electricity to Bangladesh through Indian transmission. 

Power from Nepal to Bangladesh was exported for the first time for 12 hours on July 15 last year. It has resumed from June 15 of this year.

A power sale agreement had been signed between NEA, Bangladesh Power Development Board and NTPC Vidyut Vyapar Nigam Limited of India last year, which led to export of electricity for only 12 hours last year. 

Nepal has been exporting excess electricity during the rainy season to neighboring India for five months every year. This year, starting today, NEA will export electricity to Bangladesh for the next five months, until November 15.

Subarna Sapkota, Deputy Manager of the NEA Electricity System Control Department, shared that 146.88 million units of electricity will be exported in five months. 

The government will earn Rs 1.29 billion in five months from the sale of the electricity. 

The selling rate of electricity exported under the agreement is 6.40 US cents per unit. 

The electricity will reach Bhermara Substation in Bangladesh via Muzaffarpur, Behrampur, India from Nepal's 400 KV Dhalkebar Substation.

Meanwhile, the NEA has continued its electricity exports to neighboring India. 

The NEA has also started exporting electricity to the Indian state of Haryana this year.

It had been exporting 185 MW of electricity since June 1, which increased to 200 MW from Saturday.

 As per the bilateral agreement between Nepal and India, the selling rate of this electricity export is 5.25 Indian rupees per unit.

Similarly, the NEA has also started exporting 80 MW of electricity to the Indian state of Bihar since 12 last night. In addition, additional electricity is being purchased and sold in the Indian market through the Dhalkebar-Muzaffarpur 400 kV and 132 kV transmission lines. 

As the electricity production in Nepal has increased with the onset of the rainy season, the surplus electricity is being exported to India and Bangladesh.

The Government of India on Saturday gifted 40 ambulances to health institutions in various districts of Nepal. 

The vehicle handover ceremonies were held simultaneously at four locations including the Embassy of India in Kathmandu, the Consulate General of India in Birgunj and the Pension Paying Offices of the Embassy of India in Pokhara and Dharan.

A total of 40 ambulances were gifted today covering 33 districts across all the seven provinces of Nepal, reads a statement issued by the Indian Embassy in Kathmandu. 

Out of these, 22 ambulances were handed over in Kathmandu, seven in Birgunj, seven in Pokhara and four in Dharan by representatives of the Government of India. 

Prasanna Shrivastava, Deputy Chief of Mission, Embassy of India, Kathmandu handed over the keys of the vehicles at the ceremony held in Kathmandu.

Mayors and Chairpersons of Municipalities and Rural Municipalities of various districts of Bagmati, Karnali, Lumbini and Sudurpaschim Provinces as well as representatives of various beneficiary organizations, political representatives, and social workers were present on the occasion. 

During the event, the Deputy Chief of Mission highlighted that gifting of ambulances has been one of the long-standing initiatives of the Government of India under the Nepal-India Development Partnership to bolster the efforts of the Government of Nepal to strengthen its infrastructure in the health sector, according to the statement.

He added that this initiative is a part of the larger robust and vibrant development partnership between India and Nepal which has expanded, deepened and diversified over the last seven decades. 

During their interactions with the Deputy Chief of Mission at the event, the beneficiaries expressed their gratitude for India’s support towards various ongoing developmental projects in their districts and Nepal, expressing confidence that the newly gifted ambulances will help enhance accessibility to health services in their respective regions. 

The Government of India has been presenting ambulances for more than three decades to various beneficiary organizations in different parts of Nepal, giving high priority to Nepal's health sector.

An International Monetary Fund (IMF) team led by Sarwat Jahan concluded a two-week visit to Nepal on June 10, reaching a staff-level agreement with Nepali authorities on the policies and reforms needed to complete the sixth review under the Extended Credit Facility (ECF).

The agreement, which remains subject to approval by the IMF’s Executive Board, would unlock approximately $42.7m in financial assistance. This will bring Nepal’s total disbursement under the ECF to about $331.8m out of an approved $394.75m.

In a statement at the end of the mission, Jahan noted that Nepal has made “satisfactory” progress on its ECF-supported reform agenda, despite some delays in child welfare grant targets. Key completed or near-complete reforms include the finalization of a tax expenditure report, revised National Project Bank guidelines, and a roadmap following a Loan Portfolio Review (LPR). Progress has also been made on amending the Nepal Rastra Bank (NRB) Act, incorporating recommendations from previous IMF assessments.

The IMF mission observed that Nepal’s economy is gradually recovering, supported by improvements in construction, manufacturing, hydropower, and agriculture. GDP growth for 2024/25 is projected to exceed four percent, while inflation eased to 3.4 percent in April following a post-flood spike. The country’s external position has strengthened thanks to rising exports, remittances, and tourism.

However, financial sector vulnerabilities persist. Non-performing loans (NPLs) rose to 5.2 percent in April 2025, impacting bank capital, and concerns remain about the health of savings and credit cooperatives (SACCOs).

Looking ahead, the IMF projects stronger growth in 2025/26 with inflation likely to remain within the central bank’s target range. Yet risks—including weak capital project execution, global uncertainties, and policy disruptions—remain.

The upcoming fiscal year’s budget is broadly aligned with IMF goals to ensure fiscal discipline, boost capital spending, promote private investment, and expand social programs such as the public school midday meal initiative.

The IMF emphasized the need for a cautious approach to establishing an Asset Management Company and highlighted the importance of strengthening the insolvency framework and debt recovery systems. It also praised Nepal’s progress on improving its legal framework for anti-money laundering and counter-terrorism financing.

During the visit, the IMF team held meetings with Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, National Planning Commission Vice-chairperson Shiva Raj Adhikari, Nepal Rastra Bank Governor Biswo Poudel, and other high-level officials, as well as stakeholders from the private sector and development partners. “We are grateful to the Nepali authorities for their hospitality and for open and constructive discussions,” Jahan concluded.

Photo: S Paul Kapur, who has been picked by the Donald Trump administration for the key post of Secretary of State for South and Central Asian Affairs

It has been nearly six months since Donald Trump was inaugurated as the 47th President of the United States. Since then, he has issued dozens of executive orders that have significantly impacted America’s relationship with the rest of the world.

The Trump administration’s decision to shut down the US Agency for International Development (USAID) has had major repercussions in Nepal, leading to the cancellation of dozens of projects. Similarly, two projects under the Millennium Challenge Corporation (MCC) in Nepal remain in limbo as the new administration has yet to make a final decision.

Engagement between the two countries has been minimal, particularly after the retirement of Assistant Secretary of State for South Asian Affairs Donald Lu just before Trump’s inauguration—a position that remains unfilled.

Now, the Trump administration has nominated S Paul Kapur, who is currently undergoing a congressional hearing and is expected to soon take charge of South Asian affairs. A close examination of speeches by senior US officials, including the Secretary of State and Secretary of Defense, as well as Kapur’s statements before the Senate Foreign Relations Committee, suggests that the “China factor” will heavily influence Trump’s South Asia policy—including toward Nepal. 

In fact, countering China has emerged as the Trump administration’s primary focus across Asia. Born in New Delhi to an Indian father and an American mother, Kapur is regarded as a South Asia expert. He has authored several books on the region’s security dynamics and US policy. From 2020-2021, Kapur served on the State Department’s Policy Planning Staff, working on issues related to South and Central Asia, Indo-Pacific strategy, and US-India relations. Previously, he taught at Claremont McKenna College, and was a visiting professor at Stanford University.

During his hearing, he stated: “The United States’ relationships with the countries of South and Central Asia hold great promise. With effective policy, they can flourish and enable us to achieve Secretary Rubio’s goal of making the United States safer, stronger, and more prosperous.”

He emphasized shared US-India interests, including ensuring a free and open Indo-Pacific not dominated by China, expanding bilateral trade, fostering technology sharing, and securing energy access. He also highlighted the strategic importance of Nepal, Sri Lanka, Bangladesh, the Maldives and Bhutan for regional stability, noting Sri Lanka and the Maldives’ critical locations along major trade routes and Bangladesh’s economic significance. “If confirmed, I will advocate for enhanced US cooperation with these nations to bolster security, counterbalance China’s influence, and expand trade,” he said.

In a striking statement at last week’s Shangri-La Dialogue in Singapore, US Defense Secretary Pete Hegseth signaled a more confrontational stance toward Beijing, unsettling many Asian capitals. “As our allies share the burden, we can increase our focus on the Indo-Pacific: our priority theater,” he declared, stressing that America’s security and prosperity are intertwined with those of its allies. “We share your vision of peace and stability, of prosperity and security, and we are here to stay,” he added.

Since the new administration took office, there have been no high-level US visits to Nepal. While some senior officials have traveled to Kathmandu, these trips were kept low-key. However, military collaboration between the Nepali Army and the US Army continues on a regular basis.

Meanwhile,  Secretary of State Marco Rubio ordered US embassies around the world on Tuesday to move ahead with a directive to fire all remaining staffers with the US Agency for International Development. He said the State Department will take over USAID’s foreign assistance programs by Monday, according to the AP news agency. 

The termination of all remaining USAID staffers abroad is one of the last steps in the destruction of the US aid agency and the firing of its more than 10,000 staffers and contractors by the Trump administration and Elon Musk’s Department of Government Efficiency, or DOGE, according to AP.  They had made USAID one of their first targets for elimination.