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Over the past few months, Nepal and India have stepped up engagement on multiple fronts, including long-overdue meetings of bilateral mechanisms. While the exact date of Prime Minister KP Sharma Oli’s visit to New Delhi is yet to be finalized, Indian officials confirm that preparations are underway, and the visit is likely to take place before Dashain. India has also been engaging with a wide cross-section of Nepali society in the lead-up.

Nepal-India relations faced significant turbulence, especially after 2015, which strained bilateral ties. However, in recent months, both sides appear to be moving toward a reset. Kathmandu and New Delhi have now prioritized economic and development partnerships over longstanding contentious issues.

Two key unresolved matters, the map row and the report prepared by the Eminent Persons’ Group (EPG), remain sensitive. While political parties such as the Nepali Congress, CPN (Maoist Centre), and various Madhes-based parties have largely shelved the EPG issue, some CPN-UML leaders continue to raise it, albeit with less intensity.

India’s renewed outreach to Kathmandu comes amid a shifting regional context: Donald Trump’s inauguration and subsequent US aid cuts to Nepal, political developments in Bangladesh, and a brief but deadly India-Pakistan conflict. In late July, New Delhi hosted an all-party delegation of Nepali members of parliament. According to the Indian readout, the discussions centered on expanding the multifaceted bilateral partnership.

On July 28 and 29, the seventh meeting of the India-Nepal Boundary Working Group (BWG) was held in New Delhi. The BWG had been inactive since 2019 due to the map dispute. Although this meeting did not address contentious territorial issues, both sides adopted updated modalities for inspecting, repairing, and maintaining boundary pillars, and agreed to expedite work in these areas. They also finalized a three-year work plan and committed to using advanced technologies for boundary-related tasks.

In the third week of July, the home secretary-level meeting between the two countries covered the full spectrum of bilateral security cooperation and border management. The two sides finalized the text of an agreement on mutual legal assistance in criminal matters. They also agreed to work toward the early conclusion of a revised extradition treaty, another longstanding and sensitive issue.

India also launched a collaborative initiative in partnership with the UN World Food Programme to support rice fortification and supply chain management in Nepal. The project aims to address gaps in Nepal’s fortified rice supply chain, particularly in procurement, data collection, and human resource capacity, through knowledge exchange with India’s successful public distribution system. It offers Nepali stakeholders the chance to learn from India’s experience in applying digital technologies to food logistics.

Speaking at a public event this week, foreign affairs expert Mohan Lohani, as quoted by the Press Trust of India, said that India is advancing rapidly in economic growth, development, and technological innovation. “Nepal should try to benefit from the progress made by our southern neighbor,” he said.

Another foreign policy expert, Nischal Nath Pandey, advised Prime Minister Oli to travel overland for his New Delhi visit, arguing that it would allow him to observe India’s significant progress in infrastructure, especially road transport.” During the tenure of Prime Minister Narendra Modi, India has made remarkable progress in development and road connectivity, and Nepal should learn from the experiences gained by India,” Pandey said.

As preparations for Prime Minister Oli’s India visit continue, both sides are working to finalize a major project or agreement to be announced during his meeting with Prime Minister Modi. Government officials suggest that resolving issues related to the long-pending Pancheshwar Multipurpose Project could be one such announcement. According to sources, the Indian side has conveyed that when the two prime ministers meet, a substantial breakthrough should be unveiled.

The Nepal-China diplomatic relation has entered into 70 years from today onward. 

To mark the occasion, the 70th year of the establishment of the diplomatic ties between Nepal and China is being celebrated with several program in Kathmandu and Beijing today. 

The historical relation that had officially begun after the wedding of then Tibetan King Songtsen Gampo with Princes Bhrikuti has been further expanded in the modern era. 

Diplomatic relations with China were established on the day today, August 1, 1955. 

Both countries have accorded high priority to promote bilateral relations based on the principles of Panchasheel i.e. peaceful coexistence, mutual cooperation, territorial integrity, respect for sovereignty, and non-interference. 

The top leadership of both countries is actively working to further strengthen the relationship, noted Rajeshwar Acharya, Nepal's former ambassador to China. 

As a permanent member of the United Nations Security Council, China has played a tangible role in global politics, emphasizing an effective world governance system based on law, cooperation and partnership for international peace and security, and the construction of a shared future, he added. 

Meanwhile, Prime Minister KP Sharma Oli is scheduled to attend a reception to be hosted by Chinese Ambassador to Nepal, Chen Song this evening on the occasion, PM's private secretary said.

As the global telecommunications industry accelerates toward 6G and 5G becomes standard in many countries, Nepal is witnessing an unexpected surge in 2G network users, especially in rural areas.

According to data released by the Nepal Telecommunications Authority (NTA), the telecom sector regulator, the number of 2G subscribers in the country more than doubled in the fiscal year 2024/25. Within the period, 2G users increased from 1.46m in mid-July 2024 to over 3.15m in mid-July this year—a jump of more than 1.7m users in just one year.

This rise stands in stark contrast to global trends and highlights the persistent digital divide within the country. While urban populations have largely moved on to faster networks like 4G, rural areas continue to depend heavily on basic 2G connectivity. This is not due to a lack of awareness about advanced technology, but rather to infrastructural limitations and the challenging geography of Nepal’s remote regions, say officials of NTA. 

In many rural areas, newer-generation networks are either unavailable or unreliable. This leaves local people with little choice but to rely on the aging 2G network.

Even as 2G sees renewed growth, Nepal Telecom, the state-owned telecom operator, announced plans to phase out its 2G services on the 1800 MHz band within this fiscal year to repurpose the spectrum for more advanced technologies and push for wider adoption of 4G and 5G.

Private player Ncell has also announced plans to discontinue 2G services in 2027. It plans to shut down 3G this year.

Progress on 5G, however, has been slow. Although NTA permitted Nepal Telcom to start 5G testing five years ago, the state-owned telco has not been able to roll out the service. Officials of Nepal Telecom, however, say that 5G testing will begin later this year with initial launches planned in Kathmandu and other major cities.    

Ncell, another major GSM operator, has temporarily put its 5G rollout plans on hold. CEO Jabbor Kayumov recently indicated that launching 5G is challenging under current conditions, pointing to a steady decline in telecom revenues over the past five years.

My trip to Muktinath, a sacred temple in Nepal’s Mustang district, began as a spiritual  pilgrimage. I expected silence, mountains and maybe some personal clarity. What I didn’t  expect was that the road itself—the actual journey—would teach me something deeper: why nations like Nepal struggle, not because of poverty or geography, but because of  broken systems. The Himalayas were everything I hoped for. Vast, ancient, silent. The  mountains don’t speak, but they say everything. In that silence, something inside you  wakes up. You feel tiny—but not in a diminished way. You feel connected, humbled, part of  something timeless. 

And then, the road reminds you: you’re still in Nepal. 

At first, everything was smooth. Well-paved stretches give you a sense of order, of progress.  Then suddenly—no warning—dust, potholes, mud, cliffs. No signs. No explanation. Just a sharp jolt. That’s when it hit me: this road is Nepal. Not just physically, but politically and  economically. It reflects how the country moves. Or fails to move. 

Economists Daron Acemoglu and James A Robinson, in their book Why Nations Fail, say  that nations don’t collapse because they’re poor or small—they fall when their institutions  become extractive. That means systems designed not to serve everyone, but to benefit a  small elite. When power is centralized, unaccountable and unresponsive to the people,  things fall apart. Just like the road. That road had moments of beauty—and then chaos. Like  when a traffic jam would appear out of nowhere. No rules, no traffic police. Just honking,  pushing and disorder. Yet somehow, people moved. It was dysfunctional, but it  functioned. That’s Nepal. A country where people no longer expect the system to help—but  find ways to survive anyway. 

Our driver embodied that spirit. He was fearless, navigating landslides and blind turns like a local James Bond. I was terrified. “Why are you scared?” he said. “There’s nothing to be  scared of.” It wasn’t bravery, it was normal for him. Because in Nepal, danger isn’t an  emergency. It’s routine. At one point, we passed a fresh landslide where the road had  barely been cleared. No warning signs. Just a man standing in the dust, motioning to  drivers. No uniform, no authority, just someone stepping in where the state had stepped  out. That moment stuck with me. In a nation where public services falter, ordinary people fill the void. Not because they have to—but because they must. 

And this is the tragedy: people become excellent at surviving systems that should have  protected them in the first place. 

Nepal’s economy feels just like that road. It’s moving—but always at risk. You can plan but never predict. And yet, life continues. People open shops, raise families, guide tourists, offer tea to strangers. They trust not in government, but in each other. That kind of social  capital is rare—and powerful. On those roads, I saw something remarkable: trust among  strangers. No road signs. No clear rules. But still, drivers cooperated. Because they had to.  That trust wasn’t built by policy. It came from culture. From the deep understanding that if people don’t care for each other, no one else will. 

But culture isn’t enough to build a country. Why Nations Fail makes it clear: without inclusive institutions—where opportunity is open to all, leadership is accountable, and  policies are shaped by participation—no amount of individual effort can fix systemic collapse. When policies are made by people who never walk the road, they forget where it  leads. I couldn’t help but ask: how often do our leaders walk these roads themselves? Do they feel the same jolts? Do they see the villagers’ patching holes with rocks? Or the  mothers selling noodles near construction dust while their kids play in broken corners of  concrete? Or do they see only blueprints and budgets? 

Nepal’s institutions feel just like those road bumps—sudden, unexplained and dangerous.  Too often, leaders govern without grounding. They change policies without clarity. They  promise without delivery. And still, people adapt. They move forward because it’s the only direction available. 

At Muktinath, I finally reached stillness again. Cold wind, ancient stones, sacred silence. You don’t need to understand everything to feel something shift inside. You just breathe.  And for a moment, it’s enough. But when I looked back at the journey, the literal road and  the metaphor it became, I couldn’t ignore the deeper lesson. Nepal doesn’t lack potential. It doesn’t lack spirit, creativity or community. What it lacks is leadership that walks the same road the people do. Institutions that work for everyone. Roads that are built not just  to impress, but to endure. 

Acemoglu and Robinson remind us that even countries that start the same—like North and South Korea—can end up in vastly different places if one builds extractive institutions and  the other builds inclusive ones. One stagnates, the other grows. It’s not fate. It’s a choice. Still, I believe change is possible. I see it in the eyes of young Nepalis—those who question, who leave and return, who imagine something better. I see it in those who fix what isn’t  their job to fix. In communities that cooperate even when the state fails. 

So yes, the mountains healed me. But the road taught me the truth. 

Nations don’t fail because their people are weak. They fail when their systems are weak. And  unless we rebuild those systems—with inclusion, accountability, and connection—we’ll  keep driving blind, hoping to avoid the next collapse. 

And still, despite it all, Nepal moves forward. Bumpy. Risky. Beautiful. Still going.

In recent years, Nepal has witnessed exponential growth in the use of various social media platforms. The most popular social media platforms include Facebook, X (formerly Twitter), TikTok, Instagram, Snapchat, Instagram and LinkedIn. Among these, Facebook maintains strong dominance over the Nepali social media landscape. According to data from the NapoleonCat, there were 16,479,500 Facebook users in Nepal as of Aug 2024, accounting for 51.6 percent of the population. Of these, 55.9 percent were male.

However, Facebook’s user base is gradually declining as adult users shift toward TikTok and GenZ increasingly favors platforms like TikTok and Instagram. Meanwhile, X is gaining popularity, particularly among news-savvy and politically-engaged users. But it has also become a tool for political propaganda, with ‘cyber armies’ from various political parties engaging in online smear campaigns and character assassination. This toxic environment is pushing intellectuals and thoughtful users away from the platform.

LinkedIn, on the other hand, is growing steadily in popularity among professionals seeking networking and career development opportunities. The spread of misinformation, disinformation, hate speech and cybercrime has become a pressing issue globally. Many countries are grappling with how to regulate social media in ways that respect freedom of speech while addressing these concerns. While many European nations have developed balanced approaches, several South Asian countries, including Bangladesh, are using social media regulations to suppress political opposition. 

Nepal is no exception. For over 15 years, authorities have misused Section 47 of the Electronic Transaction Act to arrest journalists and silence critics. Recently, this trend has intensified, with ruling party leaders increasingly targeting those who voice dissent. Criticisms of the government or political parties are often misclassified as fake news or hate speech, even when it clearly is not. This raises concerns that new laws may also be exploited for similar purposes.

In February, the government introduced the Social Media Act Bill in the National Assembly, the upper house of the country’s federal parliament. The Bill has sparked public debate due to several fundamental flaws. The first and foremost is the flawed legislative process itself: government officials involved in consultations have adopted a narrow, bureaucratic perspective.

There is a belief within bureaucracy that regulation can be achieved by simply creating a department. This approach fails to recognize that regulating digital platforms is far more complex than overseeing traditional media like radio, television or print which are historically governed by the Ministry of Communication and Information Technology and its subordinate bodies.

Social media regulation is multi-faceted and far-reaching. No state agency can realistically monitor an entire population. Yet the ministry appears to consult only with stakeholders like the Federation of Nepalese Journalists (FNJ), organizations of journalists affiliated with major political parties and a handful of non-governmental organizations close to the ruling parties. Independent academics and experts outside the political sphere are largely excluded from the process.

This issue is not limited to social media bills; similar problems exist in other media-related legislation. While parliament has the authority to correct fundamental flaws, lawmakers often lack necessary expertise. Many rely on briefings from NGOs. This limited input, combined with their often weak academic backgrounds, proves insufficient. Lawmakers frequently raise concerns merely to appease journalists rather than engaging meaningfully in the legislative process.

From top to bottom, the bill is riddled with problems. The preamble fails to affirm commitment to international treaties and conventions and other legal instruments to which Nepal is a party. The country has signed international treaties and conventions expressing its full commitment to upholding freedom of speech and expression. But the principles laid out by those international conventions often clash with the narrow understanding held by many Nepali politicians who view criticism as a threat rather than a democratic right.

The 2015 constitution, like its previous versions, contains progressive provisions when it comes to safeguarding freedom of speech and expression. The draft briefly touches the constitutional provision of freedom of speech and expression but remains silent about international commitment. Regarding the international part, the bill states that as other countries are formulating the news, Nepal also needs to formulate the law which is a misrepresentation of Nepal’s international commitments.  The Supreme Court has also delivered landmark verdicts upholding these rights.

However, recent rulings by lower courts appear to contradict the precedents set by the apex court. These decisions only briefly acknowledge the constitutional guarantee of free speech, signaling a shift away from the earlier commitment to protecting this fundamental right.

The Social Media Bill reflects this trend. It fails to clearly state that its purpose is to strengthen freedom of speech and expressions. Instead, it focuses more heavily on regulating social media users, given the impression that its main intent is to restrict, rather than protect, free expression.  

Undeniably, countries across the world are moving quickly to regulate social media to mitigate its negative impacts on society and democracy. But such efforts must never come at the cost of fundamental freedoms, especially freedom of speech, expression and press. Nepal should study how other nations have successfully enacted social media without undermining democratic rights.

Before drafting the bill, the government should have consulted with representatives of major social media companies. Content regulation and moderation are core to the functioning of these platforms, and without their cooperation, any regulatory framework is likely to fail. In this context, Nepal’s top political leadership should use its diplomatic and political channels to engage with these companies. For instance, a few months ago, there was communication between Prime Minister KP Sharma Oli and Elon Musk on certain issues. This shows such outreach is possible.

Regrettably, the ministry issued a public notice demanding that social media giants register in Nepal and obtain licenses. It even set a deadline that went ignored. The ministry also threatened to shut down social media platforms, a move widely seen as immature and impractical. A more constructive approach would have been to initiate dialogue, revise the proposed provisions in consultation with these companies and then develop a feasible licensing system.

As it stands, the bill grants sweeping powers to a government-formed department to oversee all social media-related issues. Given the scale and complexity of regulating digital platforms, this is highly problematic. What’s needed is an independent, empowered commission—free from political interference, bureaucratic control, corporate influence and other vested interests. Such a body should be authorized to work directly with social media companies to ensure effective and fair regulation.

The current draft appears to be designed with the aim of removing political content critical of ruling parties. In recent years, there has been a clear trend of political parties using state agencies to target and punish critics of the government and party leadership. If passed without meaningful amendments, the bill risks becoming an extension of the Cyber Bureau, an institution that has already been misused for political purposes.

One positive aspect of the bill is its commitment to launching a large-scale awareness campaign on the responsible use of social media. It proposes to raise public awareness through publications, broadcasts, websites, seminars, public service announcements and dialogues. However, the government does not need to wait for the bill to be passed to begin this vital initiative.

In conclusion, the government must take proactive steps to address the fundamental flaws in the draft bill as it is evident that the agencies involved have failed to adequately study international best practices or documents prepared by global institutions.

With 110 bighas of land, four large ponds, a commercial building in the heart of town, and over a century of history, Nigaul Gai Gaushala, a cow farm, in Gaushala Municipality should be a model institution for animal welfare and cooperative development in Nepal. Instead, it is in financial and managerial disarray, teetering on the brink of collapse.

Established in 1926 with a donation of 200 bighas of land and 1,500 high-breed cows by the then Darbhanga Maharaj Brahmadev Thakur, the Gaushala was once a prestigious center for cow protection and dairy development. Over time, however, poor management, unpaid dues, land encroachment, and legal disputes have brought it to its knees.

Despite state-of-the-art sheds and vast landholdings, the situation inside the Gaushala is grim. Malnourished cows survive on dry chaff and minimal green fodder. “Cows have even died of starvation here,” said an office source. “We are surviving on loans. Even the feed we buy is on credit, and lenders are pressuring us.”

Office accountant Rohit Kumar Karna said that managing salaries, medicines, and basic operations has become nearly impossible. “If we could collect the dues we’re owed, this wouldn’t be the situation,” he noted.

More than Rs 63.84m remains unpaid by Gaushala Municipality, as per an agreement signed during the Gaushala VDC days. According to the 2013 deal, the Gaushala was entitled to 25 percent of cattle market contract revenue. However, that payment ceased after two years, and the municipality has since been collecting fees unilaterally.

Tensions escalated this week when a violent clash erupted between Gaushala Municipality officials and Gaushala staff over market fee collection. Four people, including a ward chairperson, were injured, with one referred to Kathmandu for further treatment.

The municipality had awarded a 15-day market fee collection contract to one party, while the Gaushala had assigned the same task to another. Both claim legal control over the land, which intensified the conflict. Mayor Dipendra Mahato maintains the market falls under local government jurisdiction, while Gaushala officials say they were never consulted.

“The biggest issue is mismanagement and lack of responsibility,” said Bir Bahadur Chaudhary, acting chief of Nigaul Gaushala. “Everyone is interested in the land and assets, but no one wants to take responsibility for the cows or the institution’s mission.”

Adding to the disappointment is the failure of a once-promising Rs 1bn high-level research project, envisioned by the National Cooperative Development Board. Despite Rs 42m already spent on infrastructure—including sheds, storage, and a milk collection center—the project has stalled due to negligence.

“This could have transformed the livestock sector in Nepal. But due to lack of follow-up, it never progressed,” said former Co-chair Saroj Kumar Sharma.

Meanwhile, more than 50 bighas of fertile land under the Gaushala’s ownership have been illegally encroached. From Jalpadevi Road to Ganesh Mandir Chowk, plots originally registered under the Gaushala’s name are now occupied without legal lease or compensation. Despite clear land records, the absence of political will, legal enforcement, or institutional protection has allowed squatters and opportunists to exploit the Gaushala’s legacy.

As Nepal’s oldest Gaushala faces an uncertain future, urgent intervention is needed. Transparency in financial dealings, legal enforcement of agreements, recovery of dues, and renewed government support could help revive the organization.

Local residents are disheartened. “This Gaushala is part of our identity. Seeing cows die of hunger while people fight over land and money is heartbreaking,” said one elderly local. There are growing calls for an all-party meeting and a new binding agreement between the Gaushala and the Municipality—to protect both the land and the lives of the animals it was created to serve.

The number of tourists visiting Dhorpatan, Nepal's only hunting reserve area, has been increasing annually. 

According to the Dhorpatan Hunting Reserve Office in Baglung, the number of domestic tourists here rose by 8,000 in a year. 

Ranger Sagar Subedi of the Dhorpatan Hunting Reserve Office said that 23,692 tourists visited Dhorpatan in the fiscal year 2024/25 while such number was 15,573 in the previous fiscal year. 

Among the visitors, only 12 were the citizens from the SAARC member states and 213 were the nationals from other countries while the rest of them were the domestic tourists. 

Subedi further explained that the rise in the tourist numbers is due to increased promotion of Dhorpatan and improved tourism infrastructures. He added that the increase in tourists has also boosted revenue. 

Nepali tourists visiting Dhorpatan should pay Rs 100 as an entry fee. 

More than two million rupees in revenue was collected from the entrance fees in the last fiscal year. 

The growth in tourists is also due to popular trekking routes, said Subedi. 

While foreign tourists come mainly for hunting, the domestic tourists have been visiting to explore the hunting reserve area, Dhorpatan Valley, Niseldhor, Dhorbarah Temple, Bukipatan, Jaljala, and other sites. 

Ram Bahadur Gharti, operator of Dhorpatan Community Homestay, shared that about two dozen hotels and homestays are now offering services to the visitors in Dhorpatan Valley, and tourists can conveniently reach the area by buying tour packages too.

Foreign MinisterArzu Rana Deuba has shared that there are many cultural similarities between Nepal and Thailand.  

Inaugurating the Thai Flavors in the Himalayas and Bhat-Bhateni Thai Fair organised  here today, Foreign Minister Rana mentioned that there is historic relation between Nepal and Thailand as well as that both countries share many similarities including culture. 

She emphasized the similarities between Nepali and Thai cultures including hospitality and tolerance. 

Clarifying that tourism could become the key area of shared prosperity and collaboration between the two countries, the Foreign Minister urged Thai investors to invest in tourism and hospitality sectors as there is immense potential for tourism in Nepal.

Nepal has been moving ahead in the sector of entrepreneurship and many products produced by Nepal including handicraft items have become attractive to the global market, Minister Rana requested Thai industrialists to invest in Nepal. 

Stating that Nepal and Thailand always remain independent and sovereign nations, she recalled that agreements and understandings were reached in government and private sectors during the recent Thailand visit of  Prime Minister KP Sharma Oli.

The Foreign Minister Rana opined that such high-level visits should be continued in coming days, adding Prime Minister Oli's Thailand visit has further strengthened relations between the two countries. 

The Fair was organized by the Embassy of Thailand in Nepal and Bhat-Bhateni Supermarket.

Nepal imported over 44,500 electric vehicles in fiscal year 2024/25, underscoring a rapid shift toward electric mobility, driven by low customs duty, rising environmental awareness, and the increasing availability of affordable EV models packed with modern features.

According to the Department of Customs, 44,534 units of electric three-wheelers, motorcycles and scooters, as well as cars, vans, microbuses and buses were imported into the country in the last fiscal year. The total value of these EV imports stood at Rs 43.99bn. Customs data shows the government collected Rs 22.76bn in revenue from these imports. 

A majority of these electric vehicles came from China, while few also came from India. This surge underscores the growing preference among Nepali consumers for electric alternatives to fossil-fuel-powered vehicles.

Electric three-wheelers led the import charts, with 16,505 units brought into the country in the review period. These include 9,728 fully assembled vehicles and 6,777 knockdown units for local assembling. The total value of these three-wheelers was Rs 1.68bn. These vehicles are popular for public and short-distance transport, particularly in urban areas and the low plains of Tarai.

Similarly, 13,578 units of electric cars, jeeps and vans, totaling Rs 31.76bn in value, were imported into the country during the fiscal year. Passenger cars accounted for the lion’s share with 11,951 units, while van imports reached 1,626 units. The government earned Rs 19.7bn in revenue from this category alone. Particularly, mid-range models with motor capacities between 51-100 kilowatts were the most popular in this category. 

Electric scooters and motorcycles also saw strong growth, with 11,319 units worth Rs 4.39bn imported last year. These vehicles, preferred by commuters for their low operating costs and ease of use, generated Rs 370m in revenue for the government.

Meanwhile, Nepal imported 3,132 units of electric microbuses and buses valued at Rs 9.48bn. These included 1,830 units in the 11–14 seats category, 1,260 in the 15–25 seats category, and 16 full-sized electric buses. The government collected Rs 2.1bn in revenue from these imports.

Nepal’s economy in the fiscal year 2024/25 exhibited signs of a guarded but meaningful rebound, marked by notable shifts in trade patterns, rising consumption of key commodities, and strong export performance. While criticisms continue to mount regarding the government’s inability to roll out bold economic initiatives, market behavior and trade data present a story that hints at renewed momentum.

One of the most significant indicators of this evolving economic landscape is the overall expansion of Nepal’s international trade. The total trade volume grew by 19.24 percent compared to the previous year, a strong indicator of increased commercial activity despite political and administrative inertia. Imports during this period reached Rs 1.804trn, a 13.25 percent rise from the previous fiscal year’s figure of Rs 1.592trn. Although a double-digit increase in imports would generally raise alarms in an economy known for chronic trade deficits, this year’s data must be read in the context of a simultaneous and historic rise in exports.

Exports for the fiscal year hit a record Rs 277bn, an impressive 81.8 percent surge from Rs 152bn in 2023/24. This steep rise in export volume represents the strongest performance on record and suggests that Nepal’s export capacity is beginning to respond to global market opportunities, logistical improvements, or perhaps increased value-added activity in key sectors. Interestingly, a substantial portion of this export growth is attributable to processed soybean oil, which Nepalese traders import in crude form from third countries and refine for export, primarily to India. This particular trade mechanism, while increasing both import and export volumes, has had the net effect of raising overall trade engagement and foreign exchange earnings.

Petroleum products continue to play an outsized role in Nepal’s import basket, both as a necessity and a source of government revenue. Total petroleum imports in 2024/25 amounted to Rs 274.27bn. Diesel led the chart with 1.47m kiloliters imported, valued at Rs 128bn, an increase of nearly 55,000 kiloliters from the previous year. Petrol followed closely at 746,420 kiloliters worth Rs 64.12bn, and aviation fuel imports rose to 210,012 kiloliters, valued at Rs 18.79bn. LPG gas consumption, another critical indicator of household energy demand, hit 5.55bn kilograms, translating to an import value of Rs 62.58bn.

What makes these figures particularly noteworthy is the inverse relationship between global petroleum prices and domestic consumption. Despite falling prices on the international market, Nepal’s import volume increased substantially, suggesting robust domestic demand. This reliance, while generating significant revenue of Rs 120.57bn in petroleum-related taxes, also underscores the country’s vulnerability to global price fluctuations and its continued dependence on fossil fuel imports.

The import composition further reveals evolving consumption patterns. While diesel remained dominant, an unusual and noteworthy rise was observed in the import of crude soybean oil, which surpassed petrol in value at Rs 108.95bn. These two commodities were the only ones with imports exceeding Rs 100bn, emphasizing their critical role in the current trade structure. Meanwhile, imports of smartphones, now ranked sixth in value, reflect a growing appetite for tech consumption among Nepali consumers.

Month-wise import trends revealed fluctuating demand, with peak imports recorded in the middle of the fiscal year and a decline toward the end. For instance, imports stood at Rs 170bn in mid-May to mid-June but dropped to Rs 160bn in mid-June to mid-July. Part of this decline is attributed to the closure of the Rasuwa customs point, a vital trade gateway with China, due to flooding.

A similar pattern emerges in the automotive sector, which appears to be undergoing a modest but clear revival. The import of electric passenger vehicles increased by 14 percent, reaching 13,578 units valued at Rs 31.76bn. From this, the government collected Rs 19.7bn in revenue. The commercial EV segment witnessed even stronger growth, rising by 73 percent year-over-year with 3,813 units imported. These developments reflect both shifting consumer preferences and the likely impact of government incentives and global supply trends favoring electric mobility.

In the two-wheeler market, long regarded as a bellwether for middle-class consumption, the story is equally optimistic. Imports of motorbikes and scooters rose by 34 percent, with 201,000 units entering the country. The government earned nearly an equivalent amount of Rs 24.73bn in revenue from these imports alone. The rise in two/three-wheeled electric vehicles was also notable, with 29,437 units imported compared to 20,704 units the year before. Even fuel-based passenger cars showed a rise in demand, with 4,978 units imported in 2024/25, up from 4,246 the previous year.

These numbers offer a nuanced understanding of post-pandemic consumer behavior. Rather than a broad-based economic boom, Nepal appears to be experiencing targeted recoveries in segments such as transportation, technology, and household energy, with more modest gains in other sectors. Interestingly, this uneven recovery seems to be occurring largely independent of proactive government economic management. While critics have accused the administration of failing to implement impactful reforms or development programs, the market appears to be finding its footing nonetheless.

Beyond trade and consumption, the real estate market offers another dimension of economic recovery, particularly in high-value segments. Government data shows a spike in transactions involving premium properties in urban centers. Although the total number of property registrations slightly dipped in Asar compared to Jestha (55,524 compared to. 56,010), revenue collection told a different story. The government collected Rs 6.55bn in property transaction taxes in Asar, up by Rs 1.82bn from the Rs 4.72bn collected in Jestha. Compared to last year’s Asar, which generated only Rs 4.61bn from 46,179 transactions, this year’s data clearly indicates growth in the sale of higher-value properties.

This surge in property deals reflects rising investor confidence, likely driven by factors such as stable remittance inflows, limited alternative investment avenues, and increasing urban migration. It also highlights the potential of the real estate sector to act as a stabilizing force in Nepal’s economy, particularly in the absence of sustained industrial output or manufacturing-led growth.

All this growth occurred in a context where policy intervention was largely missing and government initiatives failed to inspire widespread confidence. The resilience of the market and the adaptability of consumers and businesses, rather than institutional action, have been the primary drivers of this recovery phase.

However, this growth comes with caveats. The rising dependency on petroleum imports, the fragile export base reliant on limited product categories, and infrastructure bottlenecks highlight the structural limitations that remain. To truly achieve sustained economic momentum, Nepal’s policymakers must move beyond passive observation and engage in strategic planning that strengthens domestic production, diversifies the export base, and builds climate-resilient trade infrastructure.

Nepal’s exports surged to an all-time high in the fiscal year 2024/25, buoyed largely by a sharp increase in shipments of edible oils, particularly soybean, sunflower and palm oil, to India. According to the Department of Customs, exports, excluding electricity and IT-related services which do not move through customs points, jumped by 82 percent, reaching Rs 277.03bn. This marks a significant recovery after two sluggish years, when annual exports hovered around Rs 150bn.

The record-breaking surge was almost entirely driven by oil products. Soybean oil alone accounted for Rs 106.79bn, while sunflower oil exports contributed Rs 12.32bn. Together, edible oils made up nearly 44 percent of Nepal’s total exports in the last fiscal year. This spike helped raise exports’ share in Nepal’s foreign trade from 8.73 percent in 2023/24 to 13.31 percent in 2024/25.

While the numbers are encouraging, the underlying composition of exports paints a worrying picture. The export boom seen this year is not driven by domestic value-added production but rather by processing imported crude oil from third countries and re-exporting the refined products to India. This makes the growth highly contingent on India’s trade policy, especially its preferential import quotas for certain Nepali products. 

The Solvent Extractors’ Association of India (SEA) earlier in February urged the Indian government to impose restrictions on edible oil imports from Nepal and other SAARC nations. Writing a letter to Prime Minister Narendra Modi, the association alleged that these imports are violating rules of origin, sidestepping established trade norms, and causing significant harm to India’s domestic refiners, agricultural producers and revenue collection.

Responding to the industry demand, the Indian government in the last week of May, reduced the basic import duty on crude edible oils by 10 percentage points, bringing it down to 10 percent. This has made the prices of crude oil, a crucial raw material for the edible oil industry, cheaper, enabling oil refineries to bring down their prices, further increasing their competitiveness. Experts say the decision will make edible oil produced domestically more competitive in the Indian markets, hitting Nepal’s exports. Meanwhile, traditional export products such as carpets, pashmina, garments, felt goods and thread remained stagnant during the review year, while exports of iron and steel products, previously a top export, declined.

Trade deficit widens six percent 

Despite the export rise, Nepal’s trade deficit widened to Rs 1527,09bn in 2024/25, as imports also climbed by 13.25 percent to Rs 1,804.12bn. Petroleum products dominated imports once again, accounting for Rs 274.27bn. The government collected Rs 115.24bn in revenue from petroleum imports alone. The trade deficit with India stood at Rs 846.51bn, and with China, it reached Rs 303bn. During 2024/25, Nepal imported Rs 1071.19bn worth of goods from India but exported merchandise worth only Rs 224.69bn. Imports  from China totaled Rs 341.1bn, while exports were worth a mere Rs 2.63bn.

President Ram Chandra Paudel has unveiled the 'National Land Cover Map 2020/2022' at the President House, Shital Niwas on Tuesday.

The land cover map published by the Forest Research and Training Centre under the Ministry of Forests and Environment was handed to the President by the Centre's Director Dr Rajendra KC.

On the occasion, President Paudel said that the forest cover should be maintained in the field as it is on the map and paper. He emphasized the need to adopt all kinds of measures to protect the forest from deforestation and to earn from the forest.

According to the land cover map, the forest area in the country is 46.08 percent, while it is 58.62 percent in Bagmati Province.

India and Nepal share a long and open border stretched across five Indian states of Uttarakhand, Uttar Pradesh, Bihar, West Bengal and Sikkim. On Nepal’s side, Madhesh, Koshi, Bagmati, Lumbini and Sudurpaschim touch India’s border. A mix of Himalayan hills and Tarai marks up the geography of its open borders, effective since 1950. Indian paramilitary force Shashatra Seema Bal (SSB) guards these borders from the Indian side while the Armed Police Force (APF) of Nepal guards Nepal’s side. Barring some contention, the India-Nepal open border has served its purpose effectively, whether it is keeping the tradition of Roti-Beti alive or contributing to the economies of both countries. Open borders also kept the bioregion of the Himalayas intact, whose impact is visible on the flora and fauna between the borders. 

Nevertheless, for states, security is a non-negotiable, as is the question of the security of open and porous borders and people living around and beyond them. India has been a victim of terrorism for a very long time, and Nepal also has been a victim of organized violence for decades. In 2020, during diplomatic tensions, Prime Minister K P Sharma Oli backed India’s call for a standard definition of terrorism during the UNGA. Five years down the line, we do not have a standard comprehensive convention against international terrorism, which rocked South Asia two months back in Pahalgam. India and Nepal have an extradition treaty, and the political elites and intellectuals see the border security with grave concern. 

However, there are growing anxieties from both sides about illegal migration. Elites in Kathmandu point out the illegal migration coming from India, while India also occasionally finds people from Myanmar and Bangladesh on the border regions with Nepal. There has also been a growing movement of countries from the Gulf and Turkey promoting their specific ways of Islam through many organizations in the Tarai region of Nepal, which is home to the majority of the Muslim population of the country. The mushrooming of many infrastructure projects backed by Turkey near the border areas needs closer scrutiny. The Turkish NGO Foundation for Human Rights and Freedoms and Humanitarian Relief (IHH) has been flagged by Indian agencies as an entity of concern. Many reports in Indian as well as Nepali media from time to time report the activities of this organisation working with the Islamic Sangh Nepal as a security threat to both nations. A recently-released report has flagged specific concerns in India. 

After Operation Sindoor and Turkey’s open support to Pakistan in the same, Turkey and Pakistan are being viewed by India as security threats. This is why these new developments in the border regions of both countries are being viewed cautiously. It is also worth noting here that Indian anxieties over these developments are not only part of rhetoric, but India has faced multiple security risks, most notably the IC-814 hijacking and the fake Indian currencies printed with the help of Pakistan’s ISI. They have also used the traditional criminal networks between India and Nepal to further their means. Well-documented sources suggest that ISI has used Nepali soil to harm India since the 1980s. It has also harmed Nepal, as the country is currently on the FATF’s grey list due to ‘deficiencies in anti-money laundering (AML) and counter-terrorist financing (CFT) regimes.’ Terrorists and financiers use any loopholes in any country to achieve their end results. The Nepal government, however, has taken the list very seriously, and the officials are working to remove the country from the list. 

If we look at the Turkish involvement in this already complex scenario, which is constantly working in tandem with Pakistan, it fuels more of India’s anxieties. There are multiple infrastructure projects IHH is taking with other organizations in the Tarai region, making up a thorny issue for Indian agencies. IHH’s record also backs these issues, as the organization has been accused of planning a bombing in Los Angeles in 1999 and is said to have ties with Al Qaeda. Many international agencies also flagged their concern about IHH, which is also known to support Erdogan and is said to have close relations with the Turkish government. 

In this context, the broader border security arrangements between India and Nepal need to be examined. The India-Nepal open border stands today at the intersection of tradition and shifting geopolitics. As external actors with divergent strategic ambitions insert themselves into the region, the onus is on India and Nepal to jointly future-proof the border against vulnerabilities that neither side can tackle alone. The task is straightforward: border management must evolve from merely guarding physical space to understanding and disrupting transnational networks that exploit social, religious and financial channels.

This calls for institutionalised cooperation, not just between security agencies, but also through shared platforms for intelligence, financial scrutiny and civic engagement along the border regions. A proactive approach would also mean enhancing community resilience in the Tarai and adjoining areas, ensuring that developmental gaps are not filled by opaque foreign entities with unclear agendas. Both governments can explore structured dialogues at the level of home ministries and central banks to counter emerging threats like terror financing and ideological radicalisation. At stake is not just bilateral security, but the health of the broader Himalayan bioregion, where open borders have historically sustained both people-to-people ties and ecological continuity. Preserving this openness while safeguarding sovereignty will require vigilance, trust-building and a strategic alignment that reflects the realities of an interconnected and contested neighborhood. India and Nepal have the history, goodwill and institutional frameworks to achieve this; what is needed now is the political will to update and act on them with clarity and foresight.

The author is a PhD Candidate at the School of International Studies, JNU, New Delhi

Nepal took part in the “Unistream Social Innovation Delegation 2025” in Israel.

Umesh Jang Rai, team leader for Biomedical Engineering Research and Innovation at the National Innovation Center (NIC), Kirtipur, Kathmandu, represented Nepal in the Delegation hosted by the Ministry of Foreign Affairs of Israel on July 19.

In 2022, the Embassy of Israel had established a Research & Development Hub and a full-fledged Israeli-styled high-tech classroom at the NIC to foster innovation, collaboration, and digital learning in Nepal.

The Delegation brings together emerging talented individuals in the field of innovation from around the world, including participants from Nepal, South Korea, India, Serbia, and other nations, for a week-long immersion into Israel’s vibrant social innovation and entrepreneurship ecosystem, reads a statement issued by the Embassy of Israel in Kathmandu.

Participants of the delegation have been engaging in a diverse schedule of professional visits, insightful meetings and networking opportunities with key figures of Israel’s innovation initiatives.

The itinerary highlights a visit to the Israeli NGO- Save A Child’s Heart, the Peres Center for Peace and Innovation, the Unit 8200 Accelerator, and the Sderot Medical Center.

Delegates will also attend the Unistream Competition at Expo Tel Aviv.

Besides, they will visit Kibbutzim KFAR AZA- one of the sites of Hamas October 7 attack and meet with a survivor of the attack.

Additional engagements feature meetings with prominent Israeli Innovators, visit to Technion University, DruzeTech and the Druze community.

Participants will further explore various leading social techs such as Hilma, Shalva National Center, and the PICO Kids. The experience will be complemented by cultural visits to the historic Old City of Jerusalem and Jaffa by the Mediterranean Sea, offering participants a broader understanding of Israel’s cultural and social landscape, according to the statement.

The visit builds upon the growing collaboration between Nepal and Israel.

Just days prior, the Ministry of Foreign Affairs of Israel hosted a high-level 14-member delegation from Nepal, from July 12-18, 2025, in conjunction with Muni Expo 2025, the flagship annual event of the Federation of Local Governments of Israel.

The event will conclude on July 24.

The Embassy of India, Kathmandu, Ministry of Federal Affairs and General Administration, Government of Nepal and Project Implementing Agencies of Government of Nepal today signed Memorandums of Understandings (MoUs) for undertaking five High Impact Community Development Projects (HICDPs) in Nepal under the grant assistance of Government of India in education and health sectors at a total estimated cost of Rs 390 million.

These five projects—Construction of Shree Jan Shakti Secondary School Building, Bateshwor-3 Bateshwor Rural Municipality, Dhanusha, Construction of Shree Mahobani Padam Secondary School, Pokhariya Municipality, Parsa, Construction of Shree Basuki Secondary School, Mellekh Rural Municipality, Achham, Construction of School Building, Hostel and Library of Benga Sah Secondary School, Prasauni Rural Municipality-2, Bara and Construction of five Bed Hospital Building, Nashon Rural Municipality -5, Manang   in Nepal shall be implemented through local authorities and institutions of the Government of Nepal including municipalities and rural municipalities.

The construction of these facilities will help provide better education and health facilities to the people in Nepal, reads a statement issued by the Indian Embassy in Kathmandu.

Since 2003, the Government of India has taken up 579 High Impact Development Projects (HICDPs) in Nepal, including the five projects whose MoUs have been signed today. 

Out of these, 496 projects have been completed in the areas of health, education, drinking water, connectivity, sanitation and creation of public utilities across all seven provinces of Nepal at the grassroot level. The remaining  projects are ongoing at various stages. 

As close neighbours, India and Nepal share wide- ranging and multi-sectoral cooperation. 

The implementation of HICDPs reflects the continued support of the Government of India in bolstering the efforts of the Government of Nepal in empowerment of its people by augmenting infrastructure in priority sectors.

The year 2025 has been a roller coaster ride for the development sector. Some development partners have discontinued; others have downsized and focused on certain geographies/sectors and others still have changed course completely. What is clear is aid is not what it used to be, the pot is shrinking and shrinking fast. Developing countries must find alternative sources of finance to fund development outcomes—and strategically leverage grants and concessional capital to maximise financing of development needs. The British Embassy Kathmandu has been designing and implementing financial instruments that unlock and mobilise public and private sector finance to support economic growth, private sector development and climate change mitigation.

Nepal is a unique country and has been on a unique development trajectory. Nepal received more than $10bn in remittance in the last fiscal year supporting a positive macro-economic outlook. Still, challenges and vulnerability remain. Dependence on remittance has, sometimes, taken attention away from private sector development and local job creation. Nepali businesses are not adequately integrated with global value chains and attract the lowest levels of foreign investment in South Asia. This limits access to foreign partnerships, technology and know-how. Nepal’s tourism sector, for example, remains stagnant, largely due to a lack of innovation and market access. Despite this and other obvious challenges in the Nepali economy, there are attractive business and investment opportunities across several sectors which remain untapped.

Access to finance is critical to ensuring inclusive growth in Nepal. A study conducted by the British Embassy calculated the funding gap from formal financial channels to small and medium enterprises (SMEs) at over $950m. More than 80 percent of the SMEs rely on informal financing sources and almost 60 percent rely on family and personal savings to fund their financing needs. Even on the formal financing side, SMEs in Nepal have very limited options for raising capital outside of collateralised bank loans. This puts many women, for example, at a disadvantage when so few of them own property or have access to savings. Limited access to finance also stifles growth, innovation and job creation. While the recent fiscal and monetary policies are more supportive of the private sector and SMEs in Nepal, SME development requires strong collaboration between all stakeholders—the government, development partners and the private sector.

Many developing economies like Nepal struggle to attract foreign investments or local capital into high risk/high rewards investment opportunities. Bilateral and multilateral development finance institutions (DFIs) are keen to invest in Nepal as is shown by the number of DFIs active in the country and those that are keeping a close watch for the right investment opportunities. Bridging the gap between interest and investment requires all stakeholders to join forces to mitigate challenges and find and develop opportunities. Designing innovative financial structures will be key in terms of crowding in large amounts of private sector capital.

Blended finance platforms invite the government, development partners, and development finance institutions (DFIs) to collaborate and unlock access to finance. Blended finance strategically uses development finance (grants) to mobilise local and international private capital (commercial capital) into strategic sectors. Further, a reform-oriented public sector that builds a supportive business environment through policy stability and effective partnerships is essential to achieving sustainable development outcomes. 

The British Embassy Kathmandu has been using a blended finance approach to support access to finance in Nepal. Funds such as Business Oxygen and Dolma Impact Fund achieved the dual goal of supporting development outcomes and enhancing returns to investors. International Finance Corporation (IFC), the investment arm of the World Bank Group, has used UK official development assistance (ODA) to de-risk investments and mobilise finance for SMEs in Nepal. The right financial structuring can help further reduce the gap between demand for capital and supply of capital in the growing SME ecosystem.

Building on previous experience, the British Embassy is establishing Nepal in Business—Catalytic Finance to unlock new sources of capital for SMEs, from the Private Equity and Venture Capital (PEVC) space and financial institutions. This financing facility will be managed by the Dutch Entrepreneurial Development Bank- FMO. Demonstration effects from blended finance facilities—investment leveraged, strengthened capacity of the financial sector, and shifting understanding of risks—can be catalytic in this ecosystem. The facility is also expected to create well above 10,000 new jobs.

The author is the Development Director at the UK’s Foreign, Commonwealth and Development Office (FCDO) in Nepal