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Since Sept 2019, the United States has provided over $700m in foreign aid through programs administered by the US Department of State and USAID. These aid initiatives have focused on health, economic growth, democracy and governance, and food security, according to a spokesperson for the US Department of State.

The US is committed to deepening its long-standing partnership with Nepal in supporting its democratic resiliency, promoting economic opportunity, and protecting and advancing its sovereignty, the Spokesperson  said in an email interview.  “Our robust people-to-people ties are the cornerstone of our relationship, fostering friendship, understanding, trust, and goodwill.”

According to the Spokesperson , the $500m Millennium Challenge Corporation (MCC) Compact, along with the Government of Nepal’s additional $197m contribution, is another great example of the US commitment to Nepal.  The Spokesperson said the MCC projects will bring high quality, green energy and improved roads to the people of Nepal to power continued economic growth. “$260m in US International Development Finance Corporation loans and equity investments will support agricultural and small and medium sized enterprises, particularly women-run enterprises.”

With the re-election of Donland Trump as president of America, foreign policy watchers in Nepal and India are keenly watching whether there will be any changes in US policy toward South Asia and Nepal. The Spokesperson  assuaged the doubt by stating that the US do not have any changes in policy to announce at this point of time. Nepal recently signed the Cooperation Framework for Belt and Road Initiative (BRI), raising eyebrows in New Delhi and Washington. Both New Delhi and Washington have advised Nepal to accept the support under BRI in a transparent way to prevent debt burden.

Commenting on Nepal’s BRI agreement, the Spokesperson said, “It is up to the Government of Nepal to determine which agreements and partnership will benefit its people.” He, however, added that such partnership between two countries should be open, transparent, and mutually beneficial. That is the basis of our partnership with Nepal, and we will continue to seek opportunities to support Nepal’s ongoing development efforts.

During Prime Minister KP Sharma Oli’s visit to China on Dec 2-5, the two sides came up with a statement which has been a topic of discussions in the political and diplomatic circles. The statement says that Nepal firmly supports China’s efforts to achieve its national reunification and opposes Taiwan’s independence.

Though the issue of Taiwan independence and shift from one China policy to one China principle was mentioned in the joint statement during former Prime Minister Pushpa Kamal Dahal’s China visit last year, China’s “national reunification” effort is a new development.

Addressing this issue, the Spokesperson said that their approach to Taiwan has remained consistent across decades and administrations. “The United States has a longstanding one China policy, which is guided by the Taiwan Relations Act, the three Joint Communiques, and the Six Assurances.” The Spokesperson further added that their one China Policy is distinct from China’s one China principle. “We do not take a position on the ultimate resolution of Cross-Strait differences, and we maintain that Cross-Strait differences must be resolved peacefully, free from coercion, and in a manner acceptable to the people on both sides of the Strait.” 

Nepal received foreign investment commitments worth Rs 20.77bn for 319 projects over the first five months of the current fiscal year 2024/25. According to the monthly report on Foreign Direct Investment (FDI) approvals published by the Department of Industries (DoI), a total investment commitment of Rs 2.11bn was recorded in the fifth month (mid-November to mid-December) alone.

FDI commitments for 138 projects worth Rs 2.13bn came via the automatic route, while investment commitments for 181 projects worth Rs 18.64bn were made through the normal approval route. These projects have proposed to create 9,206 new jobs.

Likewise, commitments of another Rs 1.54bn have been made for share purchase approvals for 27 projects.

The investment commitments have been made across six sectors—manufacturing, agriculture and forestry, tourism, services, infrastructure, and information and communication technology (ICT).

According to the report on foreign investment commitments, the tourism sector attracted the highest number of projects and the largest investment during the review period. Out of the 319 projects receiving FDI commitments, 145 (or 45 percent) were in the tourism sector. In terms of the committed amount, a significant 62 percent—equivalent to Rs 12.76bn—was directed toward tourism. The service sector ranked second, with total FDI commitments of Rs 4.83bn for 40 projects, followed by the manufacturing sector, which received commitments worth Rs 1.81bn for 22 projects.

While the ICT sector ranked second in terms of the number of projects, it attracted investment commitments of only Rs 678.71m.

However, just over a third of the total commitments are actually realised. According to Nepal Rastra Bank (NRB), only 37.89 percent of the total FDI pledged over the past decade was realised. Between fiscal years 2014/15 and 2023/24, Nepal received total FDI commitments worth Rs 395.92bn. Of this amount, only Rs 126.29bn translated into actual investment.

In the fiscal year 2023/24, Nepal received Rs 61.9bn worth of FDI commitments. Only 13.57 percent of the committed amount, or Rs 8.4bn, was realised.

Rs 1.61bn repatriated in five months

Foreign investors took home Rs 1.61bn over the first five months of 2024/25 as returns from their investments.

According to the report, foreign investors transferred Rs 382.25m as royalty, Rs 851.6m as dividend and Rs 380.86m as service fee.

FDI approvals over first five months of FY 2024/25

To be a journalist in Nepal is to take on a role that is both revered and challenging. The profession is often seen as a picture-perfect job—one that demands precision, integrity, and diligence. Journalists are regarded as the eyes and ears of society, trusted to bridge the gap between events and the public. From the layperson to those in positions of power, journalists hold a unique place in society. Yet, while the profession commands respect, it is fraught with complexities that make it one of the most demanding careers in Nepal.

Despite being regarded as a prestigious profession, journalism in Nepal is not always valued as it should be. The job can be exciting and even addictive, but it’s also fraught with scrutiny. In my personal experience as a journalist, I have often found myself being questioned more than I question others. Even when working as a camera person, I’ve felt the weight of critical eyes observing me. The profession’s appeal diminishes when you face relentless questions about why you wrote a certain piece, whether you are targeting someone, or which political party you support. Over time, these inquiries overshadow the essence of journalism, making it a challenging profession to sustain.

Working conditions for journalists in Nepal are often disheartening. Many media houses exploit their employees, compelling them to work long hours for insufficient pay. Some even require journalists to work without pay for extended periods, promising eventual compensation that may never fully materialize. Monthly paychecks, when they do arrive, are frequently delayed, incomplete, or barely enough for survival. While not all media houses operate this way, such exploitation is widespread. These practices lead many early-career journalists to abandon the profession in favor of more stable opportunities.

Journalism in Nepal has evolved significantly, influenced by advancements in technology and shifts in societal expectations. Citizen journalism has taken root, content creation has surged, and online-based journalism has flourished. Digital creators who double as journalists have become part of everyday conversations. While these developments have opened new avenues, they have also introduced challenges.  

Citizen journalism and platforms like YouTube have further complicated the landscape. While these platforms have democratized information sharing, they have also been marred by unethical practices such as spreading fake news, using clickbait, and sharing misinformation. These issues have tarnished the credibility of online journalism and affected the public perception of traditional journalists. Being labeled as a YouTuber has become a point of contention for many professional journalists in Nepal. While some established journalists have embraced YouTube as a way to expand their reach, there is a clear divide between those who transitioned to the platform after years of professional experience and those who started on YouTube without formal training. 

Unfortunately, the prevalence of misinformation makes it difficult for the public to distinguish between credible journalism and sensationalized content. Nepal’s journalism landscape now includes YouTubers presenting themselves as reporters and numerous individuals going live on media platforms. This blending of traditional and modern journalism has created opportunities but also raised concerns about credibility and ethics. YouTube has undoubtedly created new opportunities for journalists, offering a platform to connect with wider audiences. However, it has also introduced challenges, particularly for traditional journalists who have spent years building their credibility. The platform’s larger audience comes with its own issues, such as the lack of regulation and the rapid spread of misinformation. This has led to an internal conflict within the profession, further complicating the already difficult role of journalists in Nepal.

The challenges of journalism in Nepal go beyond external pressures. The profession often forces journalists to confront truths they cannot always share. Hidden stories, suppressed narratives, and untold accounts weigh heavily on journalists. Exposing these truths can be dangerous, especially when they involve powerful individuals or institutions. As a result, many journalists in Nepal carry the burden of these stories, adding to the psychological toll of their work. The internal struggle to balance truth-telling with personal and professional safety is a defining feature of the profession.

Being a journalist in Nepal means navigating a complex relationship with the public. While journalists are often seen as truth-tellers and watchdogs, they also face criticism and skepticism. People frequently question the motives behind certain stories, assuming political affiliations or personal biases. This lack of trust can be disheartening, especially for journalists who enter the field with a genuine passion for uncovering the truth. The evolving media landscape has further blurred the lines between professional journalism and amateur reporting. With the rise of citizen journalism and social media, anyone with a smartphone can report news. While this democratization of information has its benefits, it has also led to an oversaturation of content, much of which lacks credibility. This has made it increasingly difficult for professional journalists to stand out amid the noise.

Despite these challenges, journalism in Nepal remains a dream for many and a necessity for others. The profession offers unparalleled opportunities to connect with the public, shed light on important issues, and document history. At the same time, it can be a source of lifelong trauma, stemming from exploitation by employers, criticism from the public, and the internal conflicts that come with the job. For some, journalism is a calling that fulfills their passion for storytelling and truth-seeking. For others, it is a means to an end, pursued out of necessity rather than choice. 

Ultimately, what it means to be a journalist in Nepal is to navigate a fine line between truth and perception, between what can be reported and what must remain untold. The profession demands resilience, dedication, and a willingness to operate in the gray areas of truth and ethics. Whether viewed as a blessing or a curse, journalism remains an integral part of Nepal’s societal fabric, shaping how we understand and engage with the world around us. It is a profession that offers both unique rewards and unparalleled challenges, reflecting the complexities of the society it seeks to serve.

Glacial Lake Outburst Floods (GLOFs) in Nepal are becoming a significant hazard in the Himalayas, driven by climate change and an increasing number of glacial lakes. Nepal's GLOF history is marked by several catastrophic events that have caused widespread devastation. The earliest recorded GLOF occurred about 450 years ago in Seti Khola but its details are not available.  A recent article by Byers, Chand, and their team also reconstructed the GLOF history in the Kanchenjunga region, where they found the occurrence of GLOF since 1921. They found at least seven GLOF events in that region with the help of remote sensing and field observation, which were not recorded before. Besides, ICIMOD has compiled 24 events out of which 14 occurred in Nepal and 10 in Tibet (China), causing extensive damage in Nepal. A notable GLOF event occurred in 1985 when Dig Tsho burst, leading to a destructive flood that destroyed infrastructure, including a hydropower plant under construction. Another study by Shrestha and her team recorded 54 events in Nepal. These datasets also indicated that several events occurred and are occurring in remote mountains that were not noticed due to their impact being insignificant and remote in nature. The Thame GLOF that occurred in Aug 16 this year is another noticeable event that caused damage to Thame village and the downstream ecosystem despite the small size of the breached glacial lake.

The underlying causes of GLOFs are tied to the unique geographical and climatic conditions of Nepal. The Himalayas are home to thousands of glaciers, which have formed numerous glacial lakes, particularly in the high-altitude regions. These lakes are formed when glaciers retreat, leaving behind large volumes of water contained by unstable moraines. As global temperatures rise, the rate of glacial melting increases, leading to the expansion of these lakes. The moraines that contain them are often weak and prone to collapse, especially under the pressure of additional water, seismic activity or other triggering factors like avalanches or landslides.

GLOFs have severe impacts on both the natural environment and human settlements. The floods can destroy agricultural land and hydropower, disrupt transportation networks and lead to loss of life and property. In addition to physical destruction, GLOFs also contribute to long-term environmental changes, such as the alteration of river courses and the degradation of ecosystems. The socio-economic impacts are profound, particularly in rural and remote areas where communities rely heavily on agriculture and where infrastructure is limited.

Over the decades, Nepal has tried to monitor and mitigate the risks associated with GLOFs. The establishment of early warning systems, such as the one implemented at Tsho Rolpa back in the 1990s, one of Nepal's largest glacial lakes located in Dolakha district in the Tamakoshi river basin, is a critical step in disaster risk reduction. Initially, an experimental siphon system was installed in 1995 to release the water and lower the lake volume, but it stopped working after 15 months. In 1997, the then government installed additional siphones and an early warning system. An automatic early warning system was installed in 1998 with a GLOF sensing system and a GLOF warning system along the Rolwaling and Tamakoshi river valleys. Engineering interventions, such as the lowering of lake levels by three meters through controlled drainage, have also been employed to reduce the risk of outbursts through the GLOF risk reduction project, with funding from the World Bank, the Netherlands International Development Agency and the government of Nepal. However, a lack of continuous funding, research and proper coordination among agencies, along with the period of Maoist insurgency, hindered the progress of mitigation work. Again, in 2015, the Early Warning System was revitalized with the installation of hydrological, precipitation and automatic weather stations at different locations in the downstream region.

The community-based Flood and Glacial Lake Outburst Risk Reduction Project, also known as the Imja Glacier Lowering Project in the Dudhkoshi basin, was implemented between 2013 and 2017 to mitigate the risks of glacial lake outburst floods (GLOFs) and to reduce human and material losses in Solukhumbu district and catastrophic flooding events in the Tarai and Churia range. The project was implemented by the Department of Hydrology and Meteorology (DHM) in partnership with different stakeholders and funded by Global Environment Facility-Least Developed Countries Fund (GEF-LDCF), UNDP. Imja was considered one of the most potentially dangerous glacial lakes for GLOF, which is rapidly increasing in size and volume due to glacial melt and the action of lake water that continuously triggers the calving of the glacier. Key activities of the project included the establishment of early warning systems, community training for disaster preparedness and the construction of protective infrastructure. The project also emphasized community participation, ensuring that local knowledge and needs shaped the initiatives. Through these efforts, the project successfully improved local capacities to respond to flood risks, ultimately contributing to enhanced safety and security for affected populations. By excavating a channel through the moraine that holds back the lake, the project successfully lowered the water level by 3.6 m, thereby enhancing drainage capacity and reducing the risk of catastrophic flooding downstream. This intervention significantly improved safety for local communities, alleviating fears and allowing residents to pursue their livelihoods with greater security. Additionally, the project facilitated environmental monitoring of glacial dynamics, contributing to a better understanding of the ongoing changes in the region due to climate change. It also promoted awareness of GLOF risks and enhanced community capacity for disaster preparedness through training programs focused on emergency response. Furthermore, the project emphasized the importance of sustainable practices, reinforcing the need for ongoing research and actions to manage the impacts of climate change on Nepal’s glaciers. Overall, the Imja Glacier Lowering Project stands as a proactive model for disaster risk reduction, highlighting the critical integration of scientific research, community engagement, and sustainable environmental management in safeguarding vulnerable populations in the Himalayas.

Additionally, the government, in collaboration with different organizations, has undertaken research and mapping projects to identify high-risk lakes and develop preparedness strategies. The government has identified four additional glacial lakes—Thulagi in Gandaki basin and Lower Barun, Lumding and Hongu in the Koshi basin—to implement the structural intervention along with the early warning system and capacity-building. The government has proposed about $36.1m to the Green Climate Fund and the initiative is expected to start in 1-2 years.

Despite these efforts, challenges remain in effectively managing the risks associated with GLOFs. The remote and inaccessible nature of many glacial lakes makes monitoring difficult, and the unpredictable nature of GLOFs complicates forecasting efforts. Furthermore, the rapid pace of climate change poses a growing threat, as the continued retreat of glaciers is likely to create new glacial lakes and increase the volume of existing ones. As temperatures continue to rise, the frequency and intensity of GLOFs are expected to increase. Not only large-sized glacial lakes but small lakes may also have significant impacts. Thousands of such lakes in the high mountains have significant implications not only for Nepal but also for the downstream countries in the Himalayan region that share river basins with Nepal. Collaborative regional efforts are essential to address these transboundary risks. Updating current inventory, categorization of potentially dangerous glacial lakes, and regular monitoring mechanisms should be established under the government in collaboration with research institutions. 

Last Sunday was SAARC Day, the day in which the promulgation of the SAARC Charter is celebrated. It was an important occasion to remind the citizens of South Asia that they should not lose sight of the high principles behind regional cooperation. The day was even more remarkable because it was the 40th anniversary of the SAARC Charter, an important milestone though unfortunately, only on paper. I am saying so because we all know that SAARC as a regional organization could be seen as, at the best, life support. 

The truth is that SAARC has been on life support for many years. We know that the main reason is the fact that India, the main and most powerful player in the region, does not attach importance to it. 

For Prime Minister Modi of India, the SAARC process is a hindrance, a burden especially because, as we all know, Pakistan is the second biggest nation in the bloc. While such a posture by New Delhi might offer the best way to meet India’s strategic goal both geopolitically and economically, the truth is that the whole region is missing out on a huge opportunity.  By now, there is a consolidated amount of evidence that regional cooperation is effective for those countries who invest in it. 

We do not need to make the case of the European Union that has reached the levels of cooperation and integration almost akin to a confederation of nations. Africa counts on several successful examples of regional integration. While ECOWAS, the regional cooperation architecture made up by western African nations, is not living its best times due to a series of coups in several of its members, there is the East Africa community and there is also the Southern Africa development community.  

No matter the challenges, both communities have made strides in terms of joint initiatives aimed at developing the respective member-states from a shared and common perspective. The picture in Central and South Americas is mixed and more complex but at the moment President Lula of Brazil is portraying himself as a big champion of regional cooperation. One of his most recent successes is the fact that MERCOSUR, a regional trade organization of five nations in South America, signed a groundbreaking trade agreement with the EU.

Closer to South Asia, we have the benchmark of regional cooperation, the ASEAN. As an observer of Asian affairs, I am not particularly fond of ASEAN due to the fact that its members lack ambition in terms of future vision and they tightly control the whole process. Yet, I do recognize not only the potential of ASEAN but also its success story in terms of becoming a platform in which the member-states shape their common interests and, together, reap some benefits from it. I wish only that SAARC could follow some of the steps of all these organizations starting from the perspective of regional cooperation. 

In a process in which nation states collaborate and partner with each other, cooperation among themselves is the first pillar of a much more ambitious political process, regional integration. This complex, daunting end goal where countries would cede their own sovereignty is something that only Europe has been trying to pursue. As we know it is a really difficult journey, one in which sovereign states are voluntarily pulling together bits of their decision-making that are normally decided in the national capitals. 

Coming back to SAARC, we need to be realistic on what it is possible to achieve. Setting aside the highly inspiring journey of integration being undertaken by the members of the EU, SAARC must focus on replicating the ASEAN model where the capitals are fully and only the ones in charge. On the occasion of the 40th anniversary of the SAARC Charter, all the heads of state and governments have issued congratulatory messages. It is a good thing, though symbolic. 

Actually, considering the current status of play in relation to the SAARC, I am even surprised that they actually reminded themselves of the existence of the regional organization. Now it is high time to do something to reactivate the SAARC but, with PM Modi disinterested and disengaged, how to start? First of all, SAARC is not only the Leaders’ Summit which, shamefully, the last one was held in Kathmandu 10 years ago, in Nov 2014. 

It is also an umbrella organizations with a myriad of bodies, institutes and entities that are still operating no matter the challenging environment and lack of support surrounding them. The SAARC Secretariat in Kathmandu should do a much better job at highlighting their work and their undertakings. Doing so would remind the citizens of the region that, no matter the ongoing impasse existing on the top of the SAARC, the institution is still active and works steadfastly toward a shared common future. Yet the secretariat also works under difficult circumstances and, objectively, we cannot expect much from it. 

That’s why there is an opening for leaders like Oli to reintroduce the whole concept of SAARC to the South Asian people. PM Oli, by partnering with like minded heads of state and government, should simply ignore India’s neglect toward SAARC and re-create a new narrative about the strategic importance of this organization. This could become a strategic interest for Nepal, a new cornerstone of its foreign policy. 

To start with, PM Oli should task Foreign Minister Arzu Rana Deuba to take a tour of the South Asian capitals, starting from those keener to reactivate the SAARC process. New Delhi might get or might not get on board but, at this point, what India wants to do with SAARC is quite insignificant. We need a majority of nations from the region ready to promote the ideals of regional cooperation because doing so is in their best interests. PM Oli could, selectively, also embark on a tour of the region, pitching to his counterparts the importance of the SAARC.He could still, under the pretext of the 40th anniversary of the SAARC Charter, give a major speech on why Nepal and other neighboring nations should invest in a common regional architecture. 

The Secretary-General of SAARC, Md Golam Sarwar, in his congratulatory message for the same occasion, listed a series of priorities, a series of major reforms that SAARC should undertake in order to regain its legitimacy and relevance. PM Oli should embrace this cause and promote a wide debate within Nepal about ways to reactivate and reform the SAARC.

Considering that the HQ of the SAARC Secretariat is in Nepal, it should be obvious that Singhadurbar takes a special interest in the issue. PM Oli could also establish an advisory group made up of national experts, including members of the civil society and former diplomats, to chart out the best options for Nepal to become a true champion of regional cooperation not only for its own sake but for the prosperity of the whole region. If PM Oli decides it is worth investing his time and energy for the cause, helping resuscitate the SAARC could become one of his most enduring and important legacies.

Almost a decade has passed since an earthquake-ravaged Nepal adopted a federal democratic constitution, exhibiting strong political will in the face of adversities, seismic or otherwise. The charter aside, the country has not been able to introduce laws that can make way for a smooth transition from an ages-old unitary system of governance to a federal system.

Let’s go 15 months back, at least, when the National Assembly, the upper chamber of the bicameral parliament, drew the attention of the government of the day, directing it to do the needful for making laws. The directive and successive governments’ commitments to drafting the laws aside, there are, at present, only two regulations under the consideration of the lower chamber of the parliament (the House of Representatives): School Education Regulation, 2080 and Federal Civil Service Regulation, 2080. The process of making scores of laws is ‘moving’ at a snail’s pace, giving an indication of the status of implementation of the new constitution.   

Out of these laws, the Center has been literally sitting on the task of making around 40 laws, followed by provinces (24) and local levels (6).  

The laws awaiting the light of the day cover a wide range of important topics such as citizenship, right to property, acquisition and compensation, and impeachment motion. 

They come under the ambit of different ministries such as home, law, justice and parliamentary affairs, and finance. 

Department ministries aside, it is the ultimate responsibility of the top government leadership to draft these laws and present them in the Parliament, making way for enlightened discussions, changes and authentication. 

Delays, inadvertent or otherwise, in introducing laws will only come in the way of devolution of state powers so crucial for taking the state at the doorsteps of the citizenry. Not only that, such delays will only bolster forces opposed to federalism and the new constitution, thereby contributing to a growing disenchantment against the system and its destabilization. 

So, the onus is on the government leadership to take decisive steps toward implementation of the new constitution by giving momentum to the stalled lawmaking process. 

As Nepal faces the challenges and opportunities of a rapidly changing global economy, artificial intelligence (AI) is emerging as a transformative force. Once confined to global tech hubs, AI is now influencing industries across Nepal, reshaping employment trends and redefining how work is perceived. While its potential is vast, integrating AI into Nepal’s workforce requires a thoughtful approach to ensure its benefits reach everyone.

AI enables businesses to improve efficiency, reduce operational costs and innovate in previously unimaginable ways. AI is finding its way into Nepal’s key sectors, from agriculture to education and tourism. For instance, AI-driven tools are helping farmers predict weather patterns, monitor crop health using drones, and streamline supply chains. These innovations boost productivity and create demand for tech-savvy professionals capable of bridging traditional practices with digital solutions.

The IT sector is also experiencing a surge in opportunities. Nepali companies are developing AI-based services for global clients, such as data analysis, machine learning models and natural language processing. These advancements are generating a demand for skilled workers in data science, AI engineering and software development, signalling a shift in the type of expertise required in the job market.

AI’s influence extends to education, where adaptive learning platforms powered by AI are personalising student experiences. Educators are using AI tools to monitor student progress and refine teaching strategies. These developments equip today’s students with the skills they need for tomorrow’s AI-driven economy, preparing them for careers that may not yet exist.

Despite these opportunities, the rise of AI also presents significant challenges, particularly for workers whose roles involve repetitive, manual tasks. Automation in sectors like manufacturing and retail could lead to job losses, creating a pressing need for reskilling initiatives to help displaced workers transition to new roles.

A significant hurdle is the skills gap that exists in Nepal’s workforce. Many graduates lack the technical expertise and adaptability needed for AI-driven roles, highlighting a disconnect between the education system and industry needs. Furthermore, geographic disparities compound the issue. Urban areas like Kathmandu may benefit more from AI-driven opportunities, while rural populations risk being left behind due to limited access to infrastructure, training and resources.

To address these challenges, a collective effort is essential. Educational institutions such as The British College have integrated AI, coding and data analytics into their curricula. Lifelong learning should become a norm, with industries investing in upskilling their workforce and governments funding reskilling programs to future-proof jobs at risk of automation.

The government has a critical role to play in fostering an AI-ready ecosystem. Policies encouraging AI innovation—such as tax incentives for tech startups and funding for AI research—will accelerate adoption. Equally important is ensuring equitable access to technology in rural areas through improved infrastructure and digital literacy campaigns.

While AI may replace some roles, many others will be created. Careers in AI development, data analysis and machine learning are increasingly in demand, offering Nepal the opportunity to position itself as a regional talent hub. With advancements in remote work, Nepali professionals can now collaborate with global companies without leaving the country, expanding employment opportunities like never before.

AI will also drive the growth of entirely new sectors. Businesses built around AI applications for local contexts—such as intelligent logistics for Nepal’s unique geography or personalised travel experiences in tourism—will likely flourish. Lower barriers to entry for tech startups will fuel entrepreneurship, enabling more individuals to launch innovative ventures.

Nepal stands at a critical juncture. Its ability to adapt to the opportunities and challenges posed by AI will determine the future of its workforce. Industries that embrace innovation and invest in their workforce will thrive, while those that resist change may struggle to remain competitive.

The integration of AI into Nepal’s economy holds the promise of increased productivity, job creation and economic growth. However, achieving this requires a concerted effort to ensure that the benefits of AI are equitably distributed and that workers are equipped for the future. By prioritising education, fostering collaboration between stakeholders and addressing geographic and resource inequalities, Nepal can transform the challenges of AI integration into opportunities for all its citizens.

AI is not merely a tool but a force reshaping how we live and work. If Nepal can rise to the challenge, it has the potential to become a leader in AI-driven innovation, positioning itself at the forefront of South Asia’s technological landscape.

The United States supports Nepal in maintaining strong relationships with all its neighbors, including China, provided these ties are based on mutual respect and uphold Nepal’s sovereignty and independence, a senior US official has stated. Donald Lu, Assistant Secretary of State for South and Central Asian Affairs, highlighted this message during his two-day visit to Nepal, which concluded on Monday.

Speaking with a select group of journalists, Lu said, “We support Nepal in making its own independent decisions without external influence.” His remarks underscore the US stance on fostering Nepal’s ability to act as a sovereign state in its foreign and domestic policies.

During his visit, Lu held meetings with key political leaders, including Nepali Congress President Sher Bahadur Deuba, CPN (Maoist Center) Chairperson Pushpa Kamal Dahal, and senior government officials. He assured them that US-Nepal collaboration would continue regardless of changes in Nepal’s political leadership. Lu, who has been actively engaged with Nepal for the past four years, played a pivotal role in securing the endorsement of the Millennium Challenge Corporation (MCC) compact in 2022. Reflecting on its progress, he noted, “There has been real progress in implementing the MCC compact, growing the USAID portfolio, increasing US investments in Nepal, and expanding the presence of US volunteers.”

Lu also praised the recent virtual meeting between Prime Minister KP Sharma Oli and global tech entrepreneur Elon Musk. He described it as a promising development for boosting investment and trade between the two countries, calling it “fantastic.” Additionally, he commended Nepal’s political parties for advancing the transitional justice process, saying, “The passage of transitional justice bills through consensus marks a significant achievement, though challenges and difficult steps remain ahead.”

On the issue of climate change, Lu reaffirmed the United States’ commitment to supporting Nepal in addressing its vulnerabilities. He recognized Nepal’s expectations for increased development assistance and private sector investment from the US, expressing optimism about further collaboration in tackling climate-related challenges.

However, Lu refrained from commenting on Nepal’s recent agreement with China on Framework Cooperation for the Belt and Road Initiative (BRI), citing the lack of public disclosure. “I have many questions about the BRI agreement, but I hope it will be shared transparently so Nepali citizens can understand its contents,” he said. He also declined to comment on provisions in the joint statement issued after Prime Minister Oli’s visit to China, particularly those concerning Taiwan. Nevertheless, he emphasized that transparency in such agreements is essential for ensuring public trust and accountability.

Lu’s visit reaffirmed the US commitment to strengthening ties with Nepal while supporting its sovereignty, sustainable development, and independent decision-making.

The Embassy of the Republic of Korea in Nepal organized the 2024 Korea-Nepal Agriculture Cooperation Seminar in Kathmandu on Sunday to celebrate the 50th Anniversary of Diplomatic Relations between Republic of Korea and Nepal.

Nepal and South Korea signed a bilateral memorandum of understanding (MoU) on cooperation in the agricultural sector on November 2, 2023.

The South Korean Embassy said the memorandum of understanding is aimed at advancing cooperation between the two countries in the fields of agricultural science and technology, agriculture and livestock production and agricultural processing and production.

Nepal Agricultural Research Council and Korea Agricultural Research Council can now advance research activities in the field of agricultural sector. Delegation from KOPIA Division, Rural Development Administration from Korea visiting Nepal and attending the seminar and expressing their views to establish KOPIA Center in Nepal.

Speaking at the program, Korean Ambassador to Nepal Park Taeyoung said that “It is my great pleasure to join you today at this important seminar on agriculture, co-organized by the Embassy of the Republic of Korea and the Ministry of Agriculture and Livestock Development, Government of Nepal. This event comes at a significant moment as we celebrate the 50th anniversary of diplomatic relations between Korea and Nepal.”

“Over the past decades, agriculture has been a cornerstone of our cooperation, reflecting our shared commitment to the prosperity of rural communities and sustainable development. This year, to commemorate our 50 years of friendship, Korea has established a ‘Korea-Nepal Model Dairy village in Kamalamai Municipality, Sindhuli District and launched various ODA projects aimed at enhancing agricultural productivity and rural livelihoods,” he said, according to the statement.

He went on to say that the collaboration between Nepal and Korea has been further strengthened by the active engagement of organizations like KOICA, which has worked closely with the Ministry of Agriculture and Livestock Development. Through initiatives such as increasing incomes in rural areas, developing the value chain of fruit and vegetable, and supporting rural development, KOICA Nepal Office has been a vital partner in driving meaningful change.

He shared that they are planning to initiate technical research and provide support through the KOPIA (Korea Partnership for Innovation of Agriculture) project from Rural Development Administration of Korea to improve the productivity of rice and potatoes which are essential crops in Nepal.

These two agencies—KOICA and KOPIA—will create synergies together and continue to be instrumental in our efforts to modernize agriculture, enhance food security, and uplift rural communities in Nepal.

The Government of the Republic of Korea is committed to deepening their agricultural partnership by sharing expertise, technology, and resources, he said.

“Together, we can achieve our shared vision of resilient and sustainable agricultural systems, ensuring prosperity for generations to come.”

On Dec 5, Nepal and China signed the Framework for Belt and Road Cooperation (FBRC) during Prime Minister KP Sharma Oli’s visit to China. While both sides have refrained from disclosing the agreement’s full details, the government has repeatedly emphasized that Nepal is not obligated to take loans under the Belt and Road Initiative (BRI). However, this assurance has not fully dispelled concerns, as the exact modalities of financing remain unclear.

Under the agreement, Nepal’s Ministry of Foreign Affairs and China’s National Development and Reform Commission will act as the implementing agencies. It has been clarified that the BRI is not a bilateral treaty; rather, it will be governed by the laws of each participating country. Additionally, Nepal retains the option to collaborate with third countries in implementing the projects listed under the BRI.

The agreement refers to “aid financing,” a term that has sparked diverse interpretations. The ruling coalition insists that loans are not part of the arrangement, but the absence of concrete definitions leaves room for ambiguity. It is also unclear how this framework differs from the 2017 BRI agreement. Officials have revealed that 10 projects have been shortlisted under the BRI, ending years of speculation about its implementation in Nepal.

Chinese state news agency Xinhua offered some insights, citing the National Development and Reform Commission (NDRC). According to Xinhua, the agreement emphasizes the principles of planning together, building together, and benefiting together. It seeks to enhance cooperation in critical areas, including the economy, transportation, trade, and industrial development. The NDRC hailed the agreement as a step toward deepening political trust between Nepal and China and fostering high-quality Belt and Road collaboration.

In an interview with CGTN, Prime Minister Oli described the FBRC as a comprehensive umbrella agreement that encompasses diverse sectors such as infrastructure, culture, health, and education. He highlighted its potential to align Nepal’s development strategy with China’s, calling the agreement a significant milestone in bilateral cooperation.

Officials involved in the negotiations stated that the FBRC reflects Nepal’s proposals, with minimal changes from China. A previous draft implementation plan sent by China in 2020 had stalled due to Nepal’s indecision. In 2023, the Pushpa Kamal Dahal-led government came close to signing the plan, but the effort was abandoned at the last moment. Ahead of Oli’s visit, the Nepalese government formed a task force to revise the document, which ultimately produced the FBRC.

Semanta Dahal, a task force member, explained in an Onlinekhabar article that the Chinese draft resembled a broad agreement rather than a focused implementation plan. The FBRC, on the other hand, prioritizes economic and project development cooperation, retaining only the already-listed projects under the BRI. Dahal noted that a dedicated mechanism for future BRI discussions would be established soon.

The FBRC identifies 10 projects, providing clarity after years of uncertainty surrounding BRI’s implementation in Nepal. These projects include the Tokha-Chhare tunnel, the Hilsa-Simikot road, the Kimathanka-Khandbari road and bridge, the Keyrung-Kathmandu trans-border railway, Amargadhi City Hall, a 220kV transmission line, Madan Bhandari University, Kathmandu Scientific Center and Science Museum, the China-Nepal Industrial Park in Damak, and the Jhapa Sports and Athletics Complex.

Of these, the railway and tunnel projects are long-term endeavors requiring at least a decade to commence. Feasibility studies for these projects are underway with Chinese assistance. Negotiations for road projects are in progress, while the construction of the transmission line depends on a power trade agreement between the two countries. The remaining projects are relatively small, reinforcing Nepal’s cautious approach to avoid taking on large-scale loans under the BRI.

China has established mechanisms like the Silk Road Fund (SRF) and the Asian Infrastructure Investment Bank (AIIB) to support BRI initiatives. By mid-2023, the SRF had committed $22bn across 75 projects, while the AIIB, with 106 members, had approved $43.6bn for 227 projects globally. These initiatives span transport, energy, public health, and other sectors, promoting connectivity and sustainable development.

In recent years, China has shifted its focus toward smaller development projects that promise immediate returns. This approach reflects a growing reluctance to fund large infrastructure projects that lack financial viability. Consequently, Nepal and China have avoided selecting major projects under the BRI, except for the railway and tunnel.

The FBRC represents a cautious yet significant step in Nepal-China relations. While it marks progress in operationalizing the BRI, questions remain about financing and execution. The agreement signals Nepal’s intent to address its development needs without over-relying on debt. With ten projects identified and mechanisms for future negotiations in place, the FBRC lays the groundwork for collaboration, even as it underscores the challenges of aligning development ambitions with financial realities.

Tikadevi Nepali lives in Lahachowk, Kaski District, where only 33 percent of the population is Dalit. As a single mother, Nepali raised her two sons and one daughter through commercial farming and animal husbandry. Before her, no one in the community had engaged in business by raising cattle and buffaloes.

Nepali’s journey began when the Lahachowk Small Farmers Agricultural Cooperative Society was established. Initially, she raised Murrah buffaloes to sell milk and advance her business. However, she recalls a difficult experience: “People did not buy the milk brought by Dalits, which was very challenging.”

The turning point came when the cooperative served everyone at a community program, reducing the discrimination and allowing Nepali’s milk to be sold in the market. Kamala Kumari Subedi Poudel, president of the cooperative, recounts the incident: “Even the dairy tried to boycott her, saying that if you bring milk, no one else will. But at a cooperative event, we served kheer made from Nepali’s buffalo milk to those who had discriminated against her. After that, no one got sick, and attitudes began to change.”

Iman Singh Gurung, another farmer in the village, started buying Nepali’s buffalo milk and selling it in Pokhara. This helped spread awareness about cow and buffalo farming among other Dalits, who later took loans from the cooperative to start their own livestock farming.

Now 51 years old, Nepali has been selling buffalo milk for nine years. Inspired by her success, other Dalits in the area have also begun raising buffaloes after taking loans, says Chairperson Poudel. Nepali believes that the discrimination she once faced has now been eliminated because of the milk. “Nowadays, everyone eats together at feasts. Discrimination has been reduced due to the milk,” she shared.

Her children have now grown and are helping expand the family’s agricultural enterprise. With the help of her son-in-law, she has also added an additional ropani of land earned from her animal husbandry, vegetable farming, and poultry business. She has also gradually paid off her mortgaged lands and brought them under her name. Nepali's experience shows how enterprise loans not only reduced societal discrimination but also empowered her economically.

The Lahachowk cooperative, which was registered on 31 Aug 2022, initially provided small loans of up to Rs 20,000. However, with support from the Asian Development Bank (ADB) through the government, the cooperative now offers rural agricultural enterprise loans at a concessional nine percent interest rate, with individual loan limits of Rs 5m. This has allowed livestock farmers to expand their businesses.

Today, Lahachowk’s milk is famous in Pokhara, and the region now sells 12,000 liters of milk daily. While the cooperative’s loan limit remains Rs 5m, many commercial farmers now prefer loans from banks, which allow for larger investments. As a result, only three rural agricultural enterprises have received loans from the cooperative, according to Chairperson Poudel.

Lahachowk boasts 44 cooperatives, three of which are run solely by women. Chairperson Poudel noted that women-run cooperatives face fewer issues, as loans are efficiently utilized, and the recovery rate is higher.

Prime Minister KP Sharma Oli has said Nepal-China relations were further strengthened with his recent China visit.

PM Oli said it while speaking at a news conference organized at Tribhuvan International Airport after he returned home from China, completing the four-day official visit today. The two-country relations were further strengthened, which benefits Nepal, he argued.

"Various agreements were made on the projects under the Belt and Road Initiative (BRI) during my visit, from which Nepal will reap utmost benefits," PM Oli reminded, adding that separate discussion and agreements would be made on each project.

The Head of the government also shared that Nepal and China signed the agreement on BRI cooperation framework in Beijing. The agreement was signed by Secretary at Foreign Ministry, Amrit Bahadur Rai, from Nepali side while the Vice Chair of the National Development and Reform Commission, Liu Sushe, from the Chinese side. 

The agreements were made in the program attended by PM Oli and his Chinese counterpart Li Qiang. Similarly, the both Prime Ministers signed the agreement on mutual assistance.

Some of the projects are on Tokha-Chhahare Tunnel Way construction, promotion of trade between Nepal and China, export of thermally processed buffalo meat from Nepal to China and exchange of certificates on completion of 9-story Durbar Square building by China. 

Also included in the agreement are on development projects, and economic and technological aid.

The discussions were held also on the issues like expansion of connectivity, development of industrial infrastructures, agriculture, trade, tourism, investment, science and technology, sports, natural disaster management, expansion of two-country relations at people-to-people level, and poverty alleviation.

Nepal is one of the countries facing severe environmental challenges in recent years. These challenges stem from climate change, marked, among others by, erratic weather, including unpredictable monsoons, exacerbating food insecurity and destroying livelihoods. For example, natural disasters, including the devastating earthquake of 2015, highlighted the fragility of the Nepali economy.

These challenges outline the need to adopt green economy growth with full importance attached to sustainable development, environmental protection and social equity. It describes the transition of Nepal toward a green economy through examination of sectors like renewable energy, sustainable agriculture and eco-tourism. National policies can play a vital role in fostering international partnerships toward the transition. Furthermore, the green economy in Nepal represents a development trajectory that balances economic growth with care for the environment. It is an alternative path for building a resilient and more prosperous future.

A green economy is an economic organization in pursuit of reducing environmental risks and ecological insufficiencies while concomitantly contributing to sustainable economic growth. The focus is on resource efficiency, low-carbon technologies and inclusiveness to ensure that economic development does not happen at the cost of the environment. The concept of green economy is curving into renewable energy, sustainable agriculture and green infrastructure, and leading toward future prosperity by conserving natural resources for the future.

Around the world, the shift toward green economies is gaining momentum, driving urgent efforts to tackle climate change and environmental challenges. Nepal, recognizing its responsibilities as a signatory to the Paris Agreement, has taken bold steps to align its national priorities with global commitments. The country has pledged to reduce greenhouse gas emissions, strengthen its climate resilience and achieve net-zero emissions by 2045. Reflecting its dedication to sustainable development, Nepal Rastra Bank introduced the Green Finance Taxonomy in October 2024, offering clear guidelines to channel investments into eco-friendly and sustainable initiatives. Furthermore, Nepal’s updated Nationally Determined Contributions (NDCs) highlight its ambition to confront climate challenges while supporting international objectives. These measures exemplify Nepal’s unwavering commitment to advancing a green economy that addresses its unique environmental and socio-economic realities..

Nepal is rapidly moving toward a green economy, thanks to initiatives from the government, business sector involvement and grassroots organizations. The government has taken the lead in this transition through the introduction of key policies that ensure sustainable development. A very good example is the 15th Five-Year Plan of the National Planning Commission, which focuses on green growth with hydropower projects in renewable energy and intends to produce 15,000 MW by 2030. In addition, sustainable agriculture programs enhance and promote organic cultivation along with climate-resilient practices that eventually enhance food security and environmental sustainability. Eco-tourism is also added through projects that seek to maintain the resources and offer a livelihood to the surrounding economies.

The private sector in Nepal is also increasingly adopting green practices.  Private companies also invest in renewable energy, including hydropower. In sustainable products and eco-friendly services, organic food production and green building construction, businesses show a growing commitment to environmental stewardship.

At the grassroots level, local communities and NGOs are driving the green economy. Community forestry, for instance, ensures that the locals manage and conserve the forests themselves to contribute toward biodiversity protection and carbon sequestration. NGOs implement sustainable farming that improves livelihoods while doing less harm to the environment. These combined efforts put Nepal right on track for a sustainable and resilient future.

Nepal is advancing to achieve a green economy, but several significant challenges are yet to be resolved. The financial situation remains a constraint as not much investment can be afforded to large-scale projects in renewable energy sources and other green initiatives. Insufficient infrastructure in most parts of the country disrupts the pace of adopting sustainable technologies, especially in rural and remote areas. Besides, some of the other impediments in the path of green development include non-uniform implementation of environmental regulations and policy gaps.

These challenges shifting toward a green economy bring a set of new opportunities for Nepal as follows. More basically, it invests in newly developed green industries concerning renewable energy, sustainable agriculture and ecotourism that could unlock more value of employment generation side by side with sustainable environment impacts. Also, some changes have a direct positive impact on public health as a result of lower pollution standards and shifts toward a more environment-friendly way of life. Moreover, this commitment to a green economy creates the opportunity for international investment in Nepal, especially those institutions, which have focus and attention on climate finance and sustainable development. Thus, by learning about these prospects and interpreting the issues at the macro-level, Nepal provides an area for carrying out the ‘right track of a sustainable and conscious future’ that indeed aligns with the sustainable development goals and enriches the worth of economic and environmental healthiness in the country.

The country’s commitment to sustainable development has testified through different successful green economy initiatives in Nepal. The classical example is "Upper Tamakoshi Hydropower Project," which was initiated in 2011 and has been commercially operated since 2021, is the largest hydropower project in Nepal, generating 456 MW of electricity. This move of the government increased manifold the renewable energy generation capacity of Nepal, helped in reducing its dependence on imported fossil fuels and opened up avenues toward energy security.

The ‘Annapurna Conservation Area Project’ was established in 1992 and is a beautiful example of grassroots conservation. Self-managed by local communities with the support of NGOs, ACAP has succeeded in integrating conservation with sustainable tourism for the betterment of the environment and local economies. It is fast becoming a case-study for balancing environmental preservation against economic development in this most iconic of regions. These success stories represent the very best of the green economy of Nepal and reveal how the government, private sector and civil society can work in concert toward common goals with sustainable and effective impact.

Looking ahead, the future of the green economy in Nepal is very bright but it requires concerted efforts from all sectors of the economy to realize its full potential. Finding ways out of these existing challenges requires the enhancement of financial mechanisms, such as green bonds and climate funds, to support large-scale investments in renewable energy and sustainable infrastructure. Infrastructure development, especially in rural areas of the country, has become key to reaching green technologies in every corner. 

Nepal must also focus on building capacity through education and training programs that prepare the workforce for emerging green industries. Innovation and entrepreneurship in the fields of renewable energy, sustainable agriculture and eco-tourism hold immense opportunities for job creation and diversification of Nepal's economy. Time to act means that the policymakers have to commit the green economy to national priorities, businesses should be adopting sustainable business practices and the general public has to support and be involved in such processes. Together, the strong drivers of shaping Nepal's future are environmentally sustainable, economically prosperous and resilient. The green economy is the pathway to a brighter, more sustainable Nepal.

Nepal’s transition to a green economy is not just a strategic choice but an essential pathway for sustainable development. The government's initiatives in renewable energy, sustainable agriculture and eco-tourism are well-illustrated examples of great progress, with an increasing commitment from the private sector to green practices, partial completions need to be addressed. Certain shortcomings in terms of finances, infrastructure and policies need to be fixed for the full realization of such a vision. At the same time, the opportunities spread out by the green economy, job creation and improved public health to international investments hold great promise for the nation.

As Nepal has reached such a decisive juncture, it is difficult to overstate the need for the country to embark on the green economy path. The choices made today will determine Nepal's environmental and economic future for centuries. Will Nepal seize this moment in time to set an example in sustainable development or will it allow short-term obstacles to get in the way of long-term prosperity? It lies in the collective action of policymakers, businesses and citizens to advance the green economy, ensuring a resilient and prospering future for all.

The WTO agreement, a multilateral trade arrangement (MTA), is not a signed agreement. Nepal has been implementing it through the negotiation process for about 1.5 decades. While acquiring WTO membership, Nepal had made commitments on trade in goods, including farm products, trade in services and commitments on TRIPS along with legislative and adjudication commitments. These commitments, including commitments on legislative and adjudication, remain unfulfilled.  

Some of the trade opportunities of the WTO arrangements are security at market access opportunities, uniform sets of rules at borders, fair trade opportunities through elimination of quotas, predictable trading environment, counter to unfair trade practices and access to dispute settlement bodies.

Some of the negative impacts of the WTO arrangements are market access constraints and negative impact on business.

Market access constraints include tariff barriers to poor countries, and constant decline of commodity prices across the countries whereas negative impacts include threat to domestic industry from free imports, revenue loss to government, erosion of SME’s special privilege, farmers’ right to seed (Patent problem), reduced food security due to low productivity and others. 

The implementation of South Asian Free Trade Agreement (SAFTA), which began in 2006, stipulates reducing customs duty between 0 and five percent by 2015. However, full implementation of SAFTA has not materialized in a real sense with even exportable products in SAFTA’s sensitive list, though Nepal has reduced the number of sensitive products included in the list to about 1,000 from 1,295. After 2006, countries in the South Asian region have reduced the customs duties to boost intra-South Asian regional trade, which remains below five percent. It is difficult to evaluate the overall impact with import of goods under SAFTA provisions not yet started and revenue compensation mechanism not yet implemented. 

Still, it is quite difficult to reduce the customs duty on non-sensitive products. 

Poor transport network, a difficult access to ports, difficulties in implementation of rules of origin, insufficient trade facilitation measures, un-uniformity in TBT-SPS provisions and documentation within the SAARC region countries have reduced the impact of SAFTA.

We are on the way to achieving greater market access, preferential market access facility and transport, including transit way access. Nepal’s trade with SAARC member-states, barring India, is insignificant as yet. 

Besides SAFTA, there are India-Sri Lanka Free Trade agreement/FTA(1998) and Pakistan-Sri Lanka FTA (2002) for bilateral trade promotion. Nepal has entered into bilateral trade agreements with some countries in South Asia, namely Bangladesh, India, Pakistan and Sri Lanka, which are crucial for implementation of SAFTA provisions. 

Supply-side constraints, lack of infrastructure, lack of standard lab, trained human resources and coordination can be reduced by implementing bilateral trade agreements within South Asian countries. Bilateral agreements can help increase trade volume within the SAARC region, which is still low, pointing at the status of implementation of these agreements. 

Impractical provisions of SAFTA and bilateral FTA are also to blame for a grim regional trade and cooperation scenario. This calls for integration of SAFTA with the South Asian Regional Investment and Trade Agreement (SARITA).

India and Pakistan perhaps offer the best example of delayed implementation of SAFTA. The relation of individual countries in the South Asian region with the USA and other wealthy countries can explain the status of implementation of SAFTA.

In this context, trade liberalization in the South Asian region will reduce the cost of products in the value chain and supply chain, directly benefiting consumers of countries within the SAARC region. 

Policymakers have considered only some aspects of trade-related consumer welfare and full implementation of SAFTA is still a far cry. 

The current volume of intra-regional trade in South Asia is a paltry 4.8 percent of the total trade of the countries in the region. 

To boost intra-regional trade and economic cooperation, the highest priority should be on dialogue between politicians, producers and consumers along with trust-building initiatives on the part of the civil society.

The writer is a former deputy executive director of TEPC. Views are personal

Nepal and China have signed the Belt and Road Initiative (BRI) Cooperation Framework. The agreement was signed today in Beijing.

Acting Foreign Secretary Amrit Bahadur Rai and China's National Development and Reform Commission's Deputy Head Liu Sushe signed the document on behalf of their respective sides.

The signing ceremony took place on the third day of Prime Minister KP Sharma Oli's four-day official visit to the People's Republic of China at the invitation of his Chinese counterpart Li Qiang.

The construction of a 400 kV substation in Bahrabise Municipality, Sindhupalchok, is advancing at full speed. This twelve-phase substation is being developed to integrate electricity from hydroelectric projects on the Tamakoshi and Sunkoshi rivers and their tributaries into the national transmission system, enhancing the country’s overall power grid.  

The construction of 220/132 kV and 132/11 kV substations at the same location has already been completed, and equipment testing has been finalized. Meanwhile, all equipment for the 400 kV twelve-bay substation, which employs Gas Insulated System (GIS) technology, has been delivered to the site.  

Civil structures to house the power transformers are nearing completion and connection work is underway. The building to accommodate the control room and GIS equipment is still under construction. Equipment connection will commence once the civil structures are finalized. The project has achieved approximately 70 percent overall progress, with completion expected by June.  

Nepal Electricity Authority (NEA) Executive Director Kulman Ghising visited the construction site on Saturday, urging project teams to expedite the remaining work to ensure early completion.  

“Once the 400 KV Bahrabise substation is operational, electricity from hydroelectric projects in the Balefi and Bhotekoshi river corridors can be transmitted to Dhalkebar via the Bahrabise-Khimti 400 kV transmission line and exported to India,” said Ghising. “Prioritize this project and accelerate the work to finish ahead of schedule.”  

Three substations—Khimti, Bahrabise, and Lapsiphedi—are under construction as part of the 400 kV substation project. The Tamakoshi-Kathmandu 220/400 kV transmission line project, which includes a 43 km transmission line from the New Khimti substation in Ramechhap to Bahrabise, is nearing completion.  

Of the 118 towers planned for the Khimti-Bahrabise line, 117 foundations are complete, with 115 towers erected and 36 km of wire stretched. The final tower is under construction, and the Khimti-Bahrabise section is expected to be operational by February.  

Similarly, construction of the 46 km Bahrabise-Lapsiphedi 400 KV double-circuit transmission line is progressing. Out of 122 towers, 118 foundations are complete, 117 towers erected, and 42 km of wire stretched. Work on the remaining towers is ongoing. The Lapsiphedi-Changunarayan 132 KV transmission line has also been extended to enable electricity penetration into Kathmandu Valley. However, local opposition continues to impact progress.  

Upon the completion of the 400 KV transmission line funded by the Millennium Challenge Corporation (MCC), electricity will be able to flow from Lapsiphedi to the new Butwal substation at Bhumhi in Nawalparasi (Bardghat Susta West), significantly boosting Nepal’s transmission capacity.