Submit your Article

Nepal’s financial system has disbursed loans totaling Rs 5.55trn to approximately 1.94m borrowers. Governor Biswo Poudel recently highlighted this trend while presenting new data on small borrowers—defined as those with loans under Rs 10m. On that occasion, the chief of the central bank, Nepal Rastra Bank (NRB), raised concerns about the concentration of large loans among a small group of individuals and whether such lending practices are contributing meaningfully to economic productivity.

Around 1.94m Nepali people have accessed loans from commercial banks, development banks and finance companies. Of these, approximately 1.869m small borrowers have taken loans totaling
Rs 1.99trn.

These small borrowers include lower-middle-class individuals who often borrow to start small businesses, send family members abroad for work or fund vocational training. Many also take loans to purchase land or vehicles, or to build homes. However, this group is financially vulnerable. According to NRB data, 28.8 percent—equivalent to Rs 549.85bn—of their loans have become non-performing, accounting for 4.34 percent of total lending.

Mid-level borrowers, defined as those with loans between Rs 10m and Rs 100m, are also under financial stress. This segment includes approximately 6,793 borrowers, holding Rs 1.254trn in loans. Roughly 11 percent of this amount is non-performing, indicating severe repayment challenges, especially post-covid, as many small and medium enterprises failed to recover.

At the other end of the spectrum are large borrowers—those with loans exceeding Rs 100m. This group consists of just 7,763 borrowers, who collectively hold Rs 2.39trn. Even more concentrated, 1,552 individuals manage over Rs 1.34trn in loans, highlighting a stark imbalance in credit distribution. Despite handling large sums, the rate of non-performing loans in this group is significantly lower.

The data indicate that the larger the loan, the lower the likelihood of it being classified as non-performing. Borrowers in the higher brackets often have the advantage of restructuring loans, accessing new credit to service old debt and leveraging networks within the banking system. This circular lending practice, often facilitated by banks themselves, poses systemic risks and raises ethical questions.

Loans in the Rs 10–500m range account for 95 percent of Rs 1.048trn in outstanding loans, with a non-performing loan (NPL) ratio of 22.14 percent (Rs 232bn). Notably, NPL ratios decrease as loan sizes increase. For loans between Rs 50–100m, the NPL rate drops to 4.83 percent, and for
Rs 100–200m, it falls to 3.01 percent, with the highest loan brackets seeing NPLs as low as 0.04 percent.

There is a stark contrast in Nepal’s loan distribution and associated credit risks across borrower categories. While small and mid-level borrowers (with loans below Rs 100m) collectively hold significant portions of the total loan portfolio—Rs 1.99trn and Rs 1.254trn, respectively—they also exhibit alarmingly high non-performing loan (NPL) ratios of 28.8 percent and 11 percent, indicating financial vulnerability and limited resilience. In contrast, large and very large borrowers (with loans above Rs 100m), though few in number, control disproportionately high volumes of credit—up to
Rs 2.39trn—with remarkably low NPL ratios (3.01 percent and 0.04 percent). This inverse relationship between loan size and credit risk reveals a systemic concentration of financial resources among a limited elite, raising concerns about financial equity and governance. The findings underscore the need for regulatory reforms to rebalance credit flows, safeguard small borrowers, and address emerging issues of financial inequality and systemic risk.

This disparity raises concerns over the governance and equitable distribution of financial resources. NRB data reveal that out of 1.94m borrowers, just 194 individuals—0.01 percent—have accessed loans exceeding Rs 2.25trn, or 3.9 percent of the total loan volume. On an average, each of these individuals has taken loans of over Rs 1.11bn. These statistics underscore a critical issue: a limited number of individuals control a disproportionate share of banking sector credit.

This concentration of financial power has drawn attention in parliamentary discussions. In a recent meeting of the Finance Committee of the House of Representatives, clause-by-clause deliberations on the amendment of the Banks and Financial Institutions Act (BAFIA), 2073, are underway. The proposed amendments aim to address conflicts of interest, ensure fair loan distribution and introduce stricter governance measures to prevent the undue concentration of credit.

The ongoing legislative review seeks to establish clearer guidelines on eligibility for loans and address the structural weaknesses that allow such imbalances. Key concerns include whether bank directors and affiliated individuals are receiving favorable treatment and whether existing legal frameworks are sufficient to prevent misuse of financial resources.

As the debate continues, it has become evident that financial inequality is deepening. There is a pressing need for reforms to ensure that credit distribution contributes to inclusive growth, supports small and medium enterprises, and reflects principles of transparency and social justice.

The author is a senior fellow and program executive at SNG Solution

The Electricity Regulatory Commission (ERC) has decided to conduct a feasibility study for the development of a wholesale electricity market in Nepal. The 279th meeting of the ERC approved its annual plans and programs for fiscal year 2025/26.

According to ERC, the wholesale market would act as a bridge between producers, sellers and buyers of electricity, enabling direct energy trade and competitive pricing. It believes that such a platform will promote private sector participation, ensure long-term supply and make the power sector more competitive.

Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL) serve as wholesale electricity markets in India. Nepal Electricity Authority (NEA) has also been selling its surplus energy in the day-ahead market of the IEX. ERC officials say the feasibility study will examine legal and institutional frameworks, technological requirements, potential models for market development and phased implementation strategies. Based on the findings of the feasibility study, the ERC will develop a long-term policy roadmap and necessary regulatory provisions for the wholesale market.

The ERC has also approved plans to determine a cost-based, transparent structure for transmission and wheeling charges to promote open access and fair pricing. It is expected to improve power trade and attract investment in the energy sector.  The ERC has also said that it would also review the existing structure of Power Purchase Agreements (PPAs). The current PPA formats depend on the nature of the investment and there are separate PPA formats for projects developed by the private sector and government entities. The ERC plans to standardize the framework to ensure equal treatment for all investors.

It also plans to assess the actual cost of hydropower generation through a cost benchmarking study. The study will include analysis of river flow levels, discharge, and topography to estimate the likely cost of specific project types, giving investors clearer guidance on the viability of their investments. This will help formulate effective pricing strategies for electricity purchase agreements, according to the ERC. Likewise, it plans to verify and evaluate the technical and financial progress of hydropower projects through independent third parties or consultants. It also plans to introduce a distinct tariff structure for reservoir-based and other storage projects. 

With technologies such as pumped storage, battery storage, and reservoir-based hydropower playing an increasingly critical role in system stability and peak-time energy supply, the ERC plans to conduct technical, economic and regulatory studies to establish fair, transparent, and investment-friendly tariff rates. So far, no specific tariff structure exists for such projects. The ERC has also said that it would set clear criteria and justifications under which electricity can be curtailed or disconnected.

Nepal is a landlocked country. While it lacks scenic sea beaches, it is rich in mighty, milky rivers with beautiful banks. Kathmandu, the capital and a cosmopolitan city, lies on the banks of the Bagmati River. The world-famous Pashupatinath Temple also stands alongside this river.

Tragically, this sacred river is now enormously polluted, and its natural beauty is rapidly disappearing. Soon, it may lose all aesthetic appeal. Some years ago, a green belt stretched along the Bagmati, but that now feels like a distant memory. There was once an ambitious plan to build a park, which failed before it could even begin. Today, the riverbank remains filthy. Few people choose to walk there due to the foul odor from the polluted water. The area is littered with dirt, dust, mud, cow dung, and even human waste.

The encroachment of riverbanks in Nepal poses a serious threat to the environment. Similarly, the beaches of SAARC countries, like India, Pakistan, Sri Lanka, and the Maldives, also suffer from encroachment.

In India, some beaches, such as those in Mumbai, are fairly well maintained. Goa boasts particularly scenic shores, and Chennai has one of the world’s longest and most beautiful beaches. Still, problems are mounting alongside the growing number of visitors. The beaches of Kolkata and Karachi, by contrast, are poorly maintained. In both Sri Lanka and India, vendors selling food items line the shores, contributing to filth and mismanagement. Visitors, both locals and foreigners, frequently litter the coasts.

The Maldives has done well in maintaining many of its beaches, but the recent boom in seaside hotel and resort construction poses new threats to the marine environment.

Beaches in other parts of the world, like Port of Spain, are sunny, sandy, and serene. However, the growing influx of visitors from countries such as the US and EU is straining these environments as well.

Globally, similar patterns emerge: the condition of coastal and riverine environments depends heavily on how well they are managed. For instance, the coasts of Honolulu, Hawaii, and Singapore are clean and well-maintained. In contrast, the beaches of Hong Kong, Chittagong, and Cox’s Bazar in Bangladesh are in disrepair. People sunbathe and celebrate freely along these beaches, while beautiful palm trees that once supported ecological balance now stand surrounded by waste.

In Nepal, river rafting is a booming business, yet little concern is shown for the deteriorating condition of riverbanks. The environment, after all, is what surrounds us. Aesthetics are closely tied to our surroundings. Environmental aesthetics refers to the study and appreciation of natural beauty.

Aesthetics has been defined as “the study of beauty in nature and art of its character, condition, and conformity to law.” Human beings have always been lovers of beauty, and nature is the storehouse of eternal beauty.

The Tarai-Madhes region of Nepal is home to a vast network of rivers. In Jhapa district, there are rivers such as Mawa, Ratua, Biring, Mechi, and Kankai. Morang district has a dozen rivers, including Bakraha, Chisang, Khadam, and Lohandra. Sunsari is home to rivers like the Koshi, Kokaha, and Budhi. Moving westward, Saptari’s rivers include Trijuga, Khando, Mahuli, and Balan. In Siraha, rivers such as Kamala, Ghurmi, Manbati, and Gagan flow across the land. Dhanusha features rivers like Kamala, Ratu, and Charnath, while Mahottari includes the Ratukhola and Marha.

Further west, Sarlahi has the Bagmati, Lakhandei, and Jhim rivers. Rautahat features rivers like Lalbakaiya and Anuwa, and Bara includes the Gangol and Tilawe. Chitwan is known for the Gandak, Rapti, and Kayar rivers. In Nawalparasi, rivers such as Turiya and Arnkhola flow, while Rupandehi is home to Tinau, Rohini, Danav, and Ghodaha, among many others. Kapilvastu has rivers like Banganga and Surai, and Dang district contains both the Rapti and Babai rivers.

In Banke, rivers like Maan, Duduwa, and Rohini are notable, while Bardiya features the Karnali, Babai, and Bheri. Kailali’s major rivers include the Karnali, Mohana, and Pathraiya, and in Kanchanpur, rivers such as Mahakali and Chaudhara define the landscape.

River pollution is becoming a global crisis. The international community must act urgently to protect these vital water bodies from pollution, neglect, and even acts of violence or terrorism. Rivers like the Tigris and Euphrates—cradles of human civilization—must be preserved. The Gangetic plain, too, holds immense cultural and historical significance.

It is the duty of institutions like the United Nations to safeguard such critical natural assets. In extreme cases, even deploying peacekeeping forces may be necessary. In Nepal, volunteers, civil society groups, the army, police, and concerned citizens clean the Bagmati every Saturday. Yet these efforts lack consistency and state support. Keeping the Bagmati clean is not just an environmental obligation; it is a civilizational responsibility. The river is sacred in every sense.

Encouragingly, there have been some positive developments. In New Zealand, the Whanganui River was declared a living entity, with two guardians appointed to protect its rights, making it the first river in the world to receive such legal status. Similarly, India’s High Court in Uttarakhand ruled that the Ganges and its tributary Yamuna, both deeply sacred, have legal rights to be protected and represented in court. They are now to be represented by key officials, including the Chief Secretary of the state and the head of the National Mission for Clean Ganga. Indian Prime Minister Narendra Modi has pledged to restore the Ganges to its original glory.

Globally, oceans play a critical role. They contain 97 percent of the world’s water and support the livelihoods of over 3bn people. The estimated global market value of oceanic and coastal resources is $3trn. Oceans absorb around 30 percent of human-generated carbon dioxide, helping mitigate climate change. Oceanic fisheries employ more than 200m people, directly or indirectly. For many, oceans are also the main source of dietary protein.

Despite their importance, oceans face mounting threats. Around 8m metric tonnes of plastic enter the oceans every year. Their preservation must be a top global priority.

Remittance inflow has reached Rs 1,532 billion in 11 months of the current fiscal year. 

As per the Current Macroeconomic and Financial report released today, the remittance inflow has increased by 15.5 percent during the reporting period as compared to the previous fiscal year. It had increased by 17.2 percent in the previous fiscal year. 

Similarly, the remittance inflow was Rs 176.32 billion from May 15 to June 14 in the current fiscal year.

In  the same period last year, the inflow was Rs 128.91 billion. 

In the US dollar terms, remittance inflow has increased by 12.7 percent to reach Rs 11.25 billion in the review period compared to an increase of 15.2 percent in the same period last year. 

Likewise, net secondary income (net transfer) has reached Rs 1,668 billion in the review period. It was Rs 1,443 billion in the same period last fiscal year. 

According to the report, the number of Nepali workers – both institutional and individual who took first-time approval for foreign employment was 452,324 while those obtaining approval for renewed entry was 308,067 in number. 

Last year, the numbers were 421,356 and 261,210, respectively. 

Beyond the Himalayas, a quiet but powerful revolution is taking shape. Nepal, a nation long defined by agriculture and tourism, is on the brink of a technological disruption that is poised to redefine its economic future.

Artificial intelligence (AI) and advanced tech are no longer distant concepts but immediate, powerful tools set to overhaul the country’s core industries. The opportunities are not merely incremental; they represent a potential leapfrog moment with the capacity to unlock billions in new revenue streams— from IT outsourcing to revolutionizing the farm sector and reimagining the tourism industry.

The most immediate and quantifiable disruption is happening in Nepal’s burgeoning IT outsourcing sector. While the global IT outsourcing market is projected to surge from $651.54bn in 2024 to an astounding $850.73bn by 2029, Nepal is rapidly carving out its own niche. The country’s IT service exports were officially valued at $515m in 2022, marking a staggering 64.2 percent growth from the previous year. However, this figure only hints at the true scale of the boom. In the first seven months of the 2024/25 fiscal year, official records show IT exports at Rs 12.41bn (about $92m), yet industry entrepreneurs insist the real annual figure is closer to a whopping $1bn. This massive discrepancy highlights a thriving, partially untracked digital economy fueled by a young, English-speaking talent pool and significantly lower operational costs, with developer salaries averaging around $10,000 annually.

AI is the catalyst transforming this sector from a traditional Business Process Outsourcing (BPO) hub into a center for high-value, specialized services. By automating repetitive tasks like data entry and basic customer care, AI is freeing up Nepal’s tech workforce to focus on complex, in-demand fields like data analytics, machine learning engineering, and cybersecurity. This shift allows Nepali firms to move up the value chain, enhancing their global competitiveness and positioning them as ideal partners for international collaboration. The opportunity is immense. Nepal can formalize these untracked earnings and build a multi-billion-dollar industry that rivals traditional exports.

Simultaneously, AI is poised to bring a much-needed revolution to agriculture, the backbone of Nepal’s economy, which employs over 60 percent of the population but has long been hampered by traditional methods and low productivity. The disruption here is foundational. AI-powered precision farming, using drones and sensors for real-time crop monitoring, pest detection, and soil analysis, can optimize the use of water and fertilizer, drastically improving efficiency. Predictive analytics, fueled by AI, can analyze weather patterns and market trends, empowering farmers with the foresight to select the right crops and planting times, mitigating risks from climate unpredictability. 

Start-ups like GeoKrishi are already building integrated, data-driven platforms to bring these tools to smallholder farmers. Furthermore, technology like blockchain is creating transparent supply chains through initiatives like AgriClear, building consumer trust and ensuring farmers receive fair prices by connecting them directly to markets. This is not just about marginal improvements; it’s about transforming a sector that accounts for a quarter of the nation’s GDP, boosting food security, and creating a new generation of tech-savvy agricultural jobs.  

Tourism, the third pillar of Nepal’s economy, is also ripe for an AI-driven reinvention. The opportunity lies in moving beyond conventional tourism to offer hyper-personalized, safer, and more efficient travel experiences.

AI-powered platforms can act as personal travel planners, crafting bespoke itineraries tailored to each visitor’s unique preferences. This technology can also revolutionize safety and sustainability—critical concerns in a country known for adventure tourism. AI models can provide early warnings for natural disasters like floods and earthquakes. Innovative start-ups like Airlift Technology are already deploying drones to clean up waste from Sagarmatha, tackling a major environmental challenge. 

This creates a powerful new narrative for Nepal as a “smart” and responsible destination. The disruption extends to creating entirely new markets, such as AI-enabled health tourism, which would merge world-class medical care with Nepal’s unique wellness traditions. By enhancing every facet of the visitor journey, AI presents an opportunity to significantly increase tourism revenue and solidify Nepal’s standing on the world stage.  

Nepal stands at a pivotal moment. The convergence of AI and technology offers more than just modernization; it presents a strategic opportunity to disrupt legacy systems and build a resilient, diversified, and globally competitive economy. The potential is measured not only in the billions of dollars waiting to be unlocked in IT, agriculture, and tourism, but in the creation of new industries and high-skilled jobs that could define the nation's prosperity for generations to come.

As I am writing this essay, the first day of the BRICS Summit chaired by Brazil in Rio de Janeiro has concluded. Some official statements have already been released, all centered on highlighting the importance of the Global South to emerge and thrive in a world so far dominated by developed nations from the West.

With both President Xi Jinping and Vladimir Putin of Russia absent, Prime Minister Narendra Modi of India surely can take advantage of the stage, championing together with President Luiz Inácio Lula da Silva of Brazil the role of the developing nations.

“The Global South has often been a victim of double standards. Whether it is development, distribution of resources or security-related issues, the interests of the Global South have not been prioritized; India has always considered it its responsibility to rise above its own interests and work in the interest of humanity, " said PM Narendra Modi at the 17th BRICS Summit

It could be tempting to discuss the double standards of the Prime Minister who has always been very keen to cement his relationship with the Global West, especially with the leaders of the G7 but let’s set this aside.

Instead, let’s focus instead on what the BRICS could represent for a country like Nepal. There is no doubt that BRICS can have an important role in reinforcing a multipolar order. At the same time, there is the risk of this bloc polarizing the world further, especially if Russia and China succeed at pushing a strongly anti-western narrative.
It is one thing to lament the unfairness and imbalances facing the Global South, but a completely different matter if there is an open, continuous and unabated hostility toward the West in the way that both Russia and China are keen to unleash. This is the dilemma that Indonesia is facing as the latest nation officially joining the bloc as a full member.

Indonesia, like India, is one of the strongest representatives of the modern non-alignment in foreign policy. De facto, there is no longer a united nonaligned movement of nations but rather, we are talking of the strategic approach of nations like India, Indonesia and Nepal. With the multiple geopolitical crises arising, non-alignment is increasingly becoming a difficult balancing act for the capitals embracing it.

Therefore, the BRICS has a strong purpose and clear mission but only at a theoretical level because in practice, the bloc remains divided. It is one thing to rally around high rhetoric clamoring for justice and equality in the world but it is another thing to put together a coherent set of initiatives, considering also the divergent views that its members have on human rights and democracy.

Yet, there is no doubt that the BRICS cannot become a united and coherent geopolitical bloc, it has some geopolitical aspirations, given the fact that it has been welcoming new members for quite some time. Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates were officially accepted in 2023 during the South African chairmanship of the BRICS.

In practical terms, there is already a BRICS “global” bank, the New Development Bank (headquartered in Shanghai) under former Brazilian president Dilma Rousseff. While the NDB’s work is still somehow disappointing and underperforming, the potential is clear despite a “sibling” rivalry with Chinese’s Asian Infrastructure Investment Bank (AIIB). In addition, the Brazilian Presidency this year has been extremely careful at promoting very concrete areas of cooperation like climate change and artificial intelligence.

These factors make BRICS more relevant than G20 and G7, groups that, by design, are to be much more loose and unstructured platforms. Taking into account the strengths and the potential of BRICS but also its structural weaknesses, especially now that it is at risk of losing its strategic focus with its expanded (and diverse) membership, could it be worthy for Nepal to consider applying for a partner status membership?

There are many nations with this looser and less demanding type of affiliation, officially called the “BRICS Partner Countries”. It is an increasingly large group (as per now, Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan and Nigeria have this status). These are nations that want to ride on the potential of BRICS without a full commitment to it. While they can bring an additional collective strength, these nations further stress the internal divide between democracy and authoritarian nations already existing among the full members of the BRICS.

It would not be unimaginable for Nepal to consider this level of partnership with the BRICS. Most importantly, Nepal would gain some visibility and have some tangible gains, especially in terms of enlarging its very limited global presence and establishing more South-South partnerships.

But, strategically speaking, the number one priority for Nepal would be to find ways to reactivate the process of cooperation in South Asia. The SAARC, despite being moribund, should remain the “North Star” for the country’s foreign policy. BIMSTEC and initiatives like “Nepal-India-Bangladesh Corridor could play an important role but none can match the unlimited potential of the SAARC.”

BIMSTEC, no matter its added significance, would never play a fundamental role like the SAARC. The former is a connector, a bridge between two different regions, South Asia and Southeast Asia and Nepal needs to expand its relationship with a nearby region with an incredibly dynamic market. But, in matters of international cooperation and possibly regional integration (the former is the linchpin for the latter), Nepal needs to find an “engine” to maximize its economic potential and develop holistically while eradicating poverty.

Such a propeller can be only found in South Asia and it is called SAARC. With SAARC, there would be a real possibility of creating a common pan-South Asian market and united regional economy. But we all know the current status of this regional body that has been adversely impacted by the relationships between India and Pakistan. There might be creative ways for Nepal to restart the process of regional cooperation but perhaps, Nepal needs to think of itself as its engine rather than delegating this essential and yet untapped function to a regional body.

It might be high time for Nepal to think differently and out of the box and overcome the structural obstacles from two nations in the region that are not interested in leaving the past behind.
Regional cooperation and regional integration in South Asia cannot be blocked by a risky rivalry that, if left unchecked and uncontrolled, can threaten the whole region. Why should not Nepal expand its horizon and strategically imagine itself as a member of bigger forums while also not giving up its strategic interests in its own backyard and truly push for reviving the dream of a more united South Asia?

Nepal clinched the title of ACC Men's U-16 East Zone Cricket Cup. 

In the final match held at UKM Oval Cricket ground of Malaysia today, Nepal defeated Singapore by two wickets and won the title. 

Chasing the 114-run victory target posted by Singapore, Nepal made it in 29 overs losing eight wickets. 

For Nepal, Joy Thapa and Abhay Yadav contributed 24 runs, Shiwansh Bajgai 20 runs, Shubham Khanal 18 runs, Prasiddha Joshi 17 runs and Abhay 10 runs respectively. 

Kapish Venkatraman of Singapore took four wickets while Yuvaan Pandey claimed two wickets, Vedansh Gupta and Akash Teja took one wicket each. 

Earlier, winning the toss, Singapore chose to bat first. Singapore were  limited to 113 runs in 40.5 overs losing all wickets. 

Rohan Austin scored the highest 23 runs for Singapore while Riaan Naik made 15 runs, Vedansh Gupta 12 runs and Akash Teja 10 runs.  

Other batters of Singapore except them failed to score in double digit. 

Nepal's Abhay Yadab and Sushil Bahadur Rawal took three wickets each while Shubham Khanal claimed two wickets and Captain Bipin Prasad Sharma took one wicket. 

Nepali will take on Singapore in the final match of ACC Men's U-16 East Zone Cricket Cup. 

The final match will be held at 7:45 am Saturday. 

Nepal secured their place for the final match of the championship defeating Malaysia by nine wickets in the semi-final held earlier today. 

Nepal chased the 91-run victory target in just 11.4 overs. 

Similarly, defeating Hong Kong by four wickets in another round of semi-final match today itself, Singapore made their place for the final. 

Chasing the target of 169 runs posted by Hong Kong, Singapore completed it in 38.5 overs losing six wickets.  

Earlier, Nepal had defeated Singapore by six wickets in a group-wise match.

Nepal are the defending champion of the series. 

They had clinched the title of the championship by defeating Malaysia in 2023 BS. 

Nepal, Singapore, Indonesia, Bhutan, Japan, Malaysia, Hong Kong, the Maldives, Thailand and Myanmar had participated in the ongoing championship organized by the Asian Cricket Council. 

A report titled ‘Discontent to Deliberation: Challenges and opportunities in Nepal’s governance process’, published by Centre for Social Change, has identified that practice of federalism in Nepal continues to generate legal and political conflicts, particularly around the delineation of powers and responsibilities between the levels of the government.

Provincial governance remained at a flashpoint, with repeated disputes over the appointment and dismissal of Chief Ministers. For instance, in Koshi Province, a dramatic series of legal and political maneuvers followed the resignation of Chief Minister Kedar Karki, the report says. His attempt to prevent the appointment of his successor, Hikmat Karki, was challenged in the Supreme Court under Article 76(5), which governs the formation of a new government when no party commands a majority.

At the local level, the promise of decentralized governance was repeatedly tested by disputes over fiscal transfers, budget processes, and intra-governmental coordination. The report says one of the most significant flashpoints occurred in June 2024, when the federal government announced a steep reduction, by almost 26 percent, in fiscal equalization grants to local governments.

Regarding the ethnocultural government, the report says a defining feature of ethnocultural conflict over the past year has been land-related struggles that reflect both class-based and identity-based exclusion. In particular, the case of Swargadwari Guthi tenant farmers from Dang demonstrates the intersection between landlessness, caste, and bureaucratic marginalization.

Nepal’s cultural and religious diversity has become a site of contestation as development projects encroach upon sacred spaces. The Pathibhara (Mukkumlung) cable car project in Taplejung triggered sustained opposition from indigenous Limbu communities, who view the area as spiritually significant.

According to the report, the Language Bill became a flashpoint for identity-based protest in Madhes Province. In January 2025, a bill proposing Hindi as one of the official working languages alongside Maithili, Bhojpuri, and English was introduced in the provincial assembly. Despite the widespread use of languages like Tharu, Magahi, and Urdu in the region, these were excluded, leading to mass opposition from lawmakers and the public. Protesters burned effigies, blocked assembly proceedings, and accused the government of linguistic bias. The bill was withdrawn under pressure, but the episode exposed the limited consultation with affected communities and the volatility of language in identity politics.

Regarding the natural resources and environment governance, the report says that one of the most prominent trends observed in the reporting period was the escalation of community-led environmental movements, driven by mounting ecological violence and failures in state responsiveness.

The events of 2024–25 indicate that natural resource and environmental governance in federal Nepal is marked by high levels of conflict, contestation, and institutional fragmentation. Communities are increasingly asserting their rights, contesting unjust policies, and demanding sustainable and equitable resource management. Yet, systemic weaknesses persist in the forms of overlapping jurisdictions, politicization of resource access, elite capture, and insufficient regulatory enforcement.

The report aims to provide a comprehensive and empirically grounded analysis of how Nepal’s federal system has functioned over the past three years. Drawing on an extensive dataset of governance-related conflicts and cooperation, it examines how constitutional mandates are being exercised and contested in practice, especially within the domains of developmental, political, ethnocultural, and natural resources and environmental governance. The report offers a critical lens into the promises and paradoxes of federalism as a democratic project. It sets the stage for understanding not only the challenges of implementation, but also the stakes involved in navigating this complex system of governance.

The Green Climate Fund (GCF) has approved almost Rs 5 billion in grants to help Nepal reduce the growing threat of glacial lake outburst floods (GLOFs).

The 42nd Board Meeting of the GCF held in Papua New Guinea on Tuesday approved the grant assistance while recognizing Nepal's project entitled 'Protecting livelihoods and assets at risks from Glacial Lake Outburst Floods (GLOFs) and climate change-induced flooding in glacial river basins of Nepal’.

GCF's alternate board member on behalf of LDCs Dr Sindhu Prasad Dhungana, who attended the GCF meeting in Papua New Guinea, confirmed that the decision was made to approve a $36.1 million grant to help Nepal protect lives and livelihood from the risks of GLOFs. Nepal's proposal for the project was unanimously approved in the GCF Board Meeting, Dhungana shared.

He said the GCF Board Meeting endorsed 17 projects of the total 19 proposals including that of Nepal.

UN agencies have identified the GLOFs as the major and accelerating climate risk in the Himalayas. "The approval marks a new chapter in how Nepal prepares for climate threats, shifting from reacting after floods to preventing them before they happen. Led by Nepal’s Department of Hydrology and Meteorology in partnership with the United Nations Development Programme (UNDP), the new project will benefit over 2.2 million people living in Koshi and Gandaki river basins," according to UNDP Nepal.

Dhungana shared that the seven-year project is expected to be a model project to reduce the growing threat of glacial lake outburst floods.

The project aims to catalyze future public and private investment in climate risk reduction, setting an example that other high mountain countries can follow, with an additional $14 million in co-financing from the Government of Nepal, UNDP and Independent Power Producers' Association Nepal.

According to UNDP Nepal, the key components of the seven-year project include expanding and upgrading hazard monitoring and early warning systems; reducing water levels in four high-risk glacial lakes (Thulagi, Lower Barun, Lumding Tsho, and Hongu 2); strengthening riverbanks and flood-prone areas through reforestation and protective infrastructure such as check dams and vegetative gabion walls; and helping national and local authorities, first responders and communities to plan and prepare for future risks.

Likewise, UNDP has welcomed the opportunity to partner with the Government of Nepal to tackle some of the most urgent and complex climate risks facing mountain regions. “Supported by the Green Climate Fund, this initiative represents a long-term investment to protect lives and strengthen resilience where it matters most. It is climate action that is both grounded and game-changing, Kyoko Yokosuka, said UNDP Resident Representative in Nepal.

Kamal Ram Joshi, Director General of Department of Hydrology and Meteorology hoped that this project will help protect vulnerable Himalayan communities by strengthening local capacity and safeguarding lives, livelihoods, and infrastructure.

Saying that 21 glacial lakes are at high risk of outbursts in Nepal, Joshi mentioned that the CGF grant was a great achievement since it supports our efforts for risk management. The stakeholders have described this project as a significant milestone in Nepal's efforts to strengthen climate resilience.

Nepal defeated Bhutan by 298 runs in the final group match held today under ACC Men's U-16 East Zone Cricket Cup. 

Winning the toss, Nepal decided to bat first in the match held at Selangor Turf Club Ground in Malaysia and scored 358 runs at the loss of five wickets in the allotted 50 overs. 

For Nepal, Raunak Shrivastava scored highest 168 runs off 132 balls. Similarly, Joy Thapa made 61 runs (not out), Shivans Bajgain 54 runs and Sugam Budhathoki 35 runs. 

For the bowling side, Sangay Dorji of Bhutan took three wickets while Tenzin Loday claimed one wicket.

Chasing the target of 359 runs posted by Nepal, Bhutan mustered only  60 runs by losing nine wickets in 32.4 overs.  

For Bhutan, Tshezang Dawa scored 14 runs and Ugyan Chophel 10 runs.

For Nepali bowling side, Captain Bipin Prasad Sharma took four wickets while Sachin Bhatta and Suyog Bhattarai claimed two wickets each. 

Nepal entered the semi-final remaining on the top of Group 'A' winning all four matches. 

Nepal will play the semi-final against host Malaysia on 

 Thursday.

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.