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Nepal, a landlocked country situated between two major economies—India and China—faces numerous developmental challenges. Among them, the growing influence of informal trade stands out as a major obstacle to economic growth and institutional stability. While formal trade is regulated, taxed, and contributes to the state’s capacity, informal trade operates outside the law. It includes activities that are unregistered, untaxed, and often illegal. Over time, this shadow economy has become deeply embedded in Nepal’s economic structure. In many ways, Nepal suffers more from the harmful effects of informal trade than from any shortcomings in formal trade.

Informal trade in Nepal takes many forms. It includes the smuggling of goods such as gold, fuel, medicines, money laundering and electronics across open borders. It also includes unregistered businesses, undocumented labor, and transactions carried out entirely in cash to avoid tax and regulation. Nepal’s long and porous border with India, combined with difficult-to-monitor terrain in the north, makes informal trade easy to conduct and hard to control. On the domestic front, many small and medium-sized enterprises operate without any legal registration. As a result, they fall completely outside the formal economic system.

The scale of informal trade in Nepal is vast. Estimates suggest that the informal economy may account for 35 percent—40 percent of the country’s GDP and more than 80 percent of total employment. This means a large portion of Nepal’s economic activity is hidden from the state. It does not contribute to taxes, cannot be properly measured, and creates unfair competition for businesses that do comply with the law. While formal trade has its own inefficiencies—such as bureaucratic delays, red tape, and occasional corruption—these can be addressed through policy reforms. Informal trade, by contrast, creates deep and lasting damage that is harder to fix. It undermines public revenue, weakens institutions, and limits Nepal’s ability to plan and deliver services.

Addressing the informal economy is not simple, but it is necessary. A multi-pronged approach is needed—one that focuses on simplifying formal procedures, using technology, building trust, and offering real incentives for businesses and workers to shift into the formal system.

One of the first priorities should be to make it easier for small businesses to formalize. Many avoid registration simply because the process is slow, complex, and costly. Nepal should adopt a digital, one-window registration system that reduces paperwork and lowers barriers to entry. If formality becomes easier and less expensive, more businesses will join.

Another key step is improving border management. Nepal cannot control smuggling effectively using traditional methods alone. New technologies such as automated scanners, GPS tracking, and electronic cargo systems should be introduced. Just as important is cooperation with neighboring countries. Shared data and joint monitoring can help prevent illegal trade across borders.

The informal economy also depends heavily on cash, which makes transactions untraceable. Promoting digital payments is a powerful tool to reduce this dependence. However, digital infrastructure alone is not enough. The government must also invest in public awareness, digital literacy, and incentives to encourage both consumers and businesses to use digital platforms.

To support this shift, the state should reward those who comply. Businesses that register and follow regulations should receive benefits—such as tax breaks, better access to finance, and eligibility for government contracts. This changes the perception of regulation from being a burden to being a business opportunity.

Labor reform is another vital area. Most informal workers in Nepal lack legal contracts, benefits, or protections. To bring these workers into the formal economy, Nepal must design labor policies that fit the needs of small enterprises. Portable social security schemes, flexible contracts, and minimum wage protections should be introduced even for small and transitioning firms.

Overall, the informal economy reflects not just illegal behavior, but deeper problems in Nepal’s institutions and systems. It is not enough to use force or punishment. What Nepal needs is transformation—simple, transparent, and fair systems that encourage people to participate legally. Informality is often a result of necessity, not criminal intent. That’s why the government must respond with practical solutions that make formalization more attractive and accessible.

In conclusion, while informal trade may provide income and survival for many, it does long-term harm to Nepal’s economy. It limits tax collection, distorts markets, and weakens the foundations of good governance. Compared to formal trade, whose problems can be corrected through reform, informal trade creates much deeper challenges. If Nepal wants to build a resilient and inclusive economy, it must take bold steps to reduce the size and influence of its informal sector. By simplifying procedures, using technology, and offering clear incentives, the country can bring more of its economy into the formal fold—and unlock its full potential for growth and prosperity.

Foreign Minister Arzu Rana Deuba has emphasized the strong and sustainable ties between Nepal and the United States, describing the relationship as one built on trust, respect and shared values. 

At a ceremony held today to hand over two Skytrucks provided by the United States to the Nepal Army, she described the assistance as a symbol of lasting friendship and cooperation between the two countries. 

The Foreign Affairs Minister noted that Nepal's friendship with the US is guided by the objectives of peace, stability and human service. 

"The United States is a development partner and reliable friend of Nepal in strengthening democratic governance, humanitarian assistance, disaster management, peacekeeping and capacity building," she said, expressing gratitude to the US government and people for their continued support.

Minister Rana also praised the Nepal Army for its dedication, discipline and unwavering commitment to nationhood, world peace and security. 

At the ceremony, US Ambassador Dean R Thompson handed over two Skytrucks to Minister Rana, Defence Minister Manbir Rai, and Army Chief Ashok Raj Sigdel. The Skytrucks will be used for disaster relief and rescue operations and air ambulance services.

The government plans to track foreign nationals visiting Nepal on tourist visas. The Immigration Department issued a notice on Tuesday, stating that digital tracking will begin on Sept 17. Under the new system, foreign nationals staying in star hotels will be required to submit their personal details through a mobile app. Tikaram Dhakal, Director of the Immigration Department, said the first phase of the foreign national registration and monitoring system will be implemented in star hotels in coordination with the Hotel Association Nepal.

A manual has been prepared to guide this process. The system aims to enhance security for foreign visitors, improve information management and facilitation, support crime prevention, and promote tourism. Visitors must submit their details before arriving at their hotel, and the system will gradually expand nationwide. It will initially be introduced in star hotels in Kathmandu before being extended to other areas.

The department believes the system will simplify record-keeping of foreigners’ activities and residences and ensure timely search, rescue, and safety measures during emergencies. Department Chief Ramchandra Tiwari added that hotel staff can also scan the details via the app. The information will remain secure within the hotel system, while the Immigration Department will monitor it centrally.

Foreign nationals must submit their details before reaching their booked hotel. If a visitor fails to do so, hotel staff are required to update the information online. The system will eventually cover star hotels, airlines, tour and travel companies, and money exchange services across the country. The department plans to expand it to all types of hotels, guest houses, and public and private institutions.

The Immigration Department has made it mandatory for all foreign visitors to use its mobile app. Upon downloading, each visitor receives a QR code, which the department will use to track them digitally.

The government has made it clear again that Nepal has not made any agreement on the China-proposed Global Security Initiative (GSI). 

The government has urged one and all not to rely on the baseless news circulated stating Nepal's agreement on the GSI following a bilateral meeting of Prime Minister KP Sharma Oli and Chinese President Xi Jinping held on August 30 in China's Tianjin city on the sidelines of the Shanghai Cooperation Organization (SCO).  

Foreign Secretary Amrit Bahadur Rai said, "The government is firmly committed to the nation's non-aligned foreign policy. I urge all stakeholders not to make any comments without understanding such sensitive issues of the foreign policy."

Foreign Secretary Rai stated that the issues of the Global Security Initiative and other aspects of bilateral, regional and international concerns were discussed during the meeting between PM Oli and President Xi in Tianjin.

Following Prime Minister Oli's visit to China and his meeting with Chinese President Xi, the issue of Nepal's 'agreement' on GSI was raised by the lawmakers in the House of Representatives (HoR) meeting on Wednesday.

The HoR Members called for information to the House regarding the claims made by China through a statement issued by its Foreign Ministry.

Both ruling and opposition lawmakers insisted that the Prime Minister and the Foreign Ministry should respond before the House on this matter.

It is my great honour to address the SCO Plus Meeting in Tianjin, a city that ever shines with beauty, culture and innovation. Let me extend warm greetings and best wishes of Nepali people for the success of this Meeting as well as continued progress and prosperity of all SCO Member States. My delegation joins me in expressing our sincere gratitude to the Government of China for the generous hospitality and excellent arrangements made for the meeting. We live in an age of extraordinary progress: in science, technology, and innovation.

Yet, this progress is overshadowed by deep fractures: widening inequalities, economic turbulence, climate emergencies, and conflicts that defy borders. In such a world, no nation can stand secure in isolation. No people can prosper in fragmentation. This is why multilateralism is an imperative of our time. Yet we must face a harsh truth. Rule based order has been challenged. Peace and justice remained elusive. Thus, multilateralism is in crisis. And this crisis is not only external. It also stems from its failure to deliver. Multilateral forums promise much. Too often, they deliver little. Promises without progress erode trust.

But abandoning multilateralism is not the answer. We need a revitalised multilateralism now. We must make the global governance system more effective and efficient by placing the United Nations at its core. In this context, the Global Governance Initiative (GGI) proposed by China would help strengthen the multilateral system by making it a more just, inclusive and equitable community with a shared future for humanity. The Shanghai Cooperation Organization will complement the spirit of revitalized multilateralism based on sovereign equality,

Further, there is an urgency for a revitalized SCO:

• More united,
• More integrated, and
• More resilient to tackle deepening geopolitical, economic, and ecological shocks that threaten our shared future

Nepal, a proud Dialogue Partner since 2016, looks forward to getting admitted as a full member. We cannot speak of peace without addressing regional security. Threats cross borders every day. Terrorism robs societies of safety and opportunities. Climate change multiplies risk. Nepal, with the Himalaya in its heart, feels its wrath directly. While our mountains serve as global climate stabilizers, they are being stripped of their snow reserve endangering the lives of billions living downstream. Emerging threats such as cyber-attacks, pandemics, ecological shocks are not confined to borders. With just five years left to achieve the Sustainable Development Goals, we are clearly off-track.

In these turbulent times, regional cooperation is a tool to tackle shared challenges—economic, technological, ecological. Nepal’s commitment to regional cooperation is steadfast, and our relations with SCO members are strong. The path ahead requires three shifts. First, from isolation to connectivity. We must foster regional peace, progress and prosperity through enhanced physical, economic, digital, socio-cultural and people-to-people connectivity. Second, from confrontations to consultations. Disagreements are natural, but disputes need not to be destructive. By embracing the Shanghai Spirit, we should step up dialogue and diplomacy to nurture deeper understanding.

Third, from competition to cooperation. The world needs more partnership not partition. By working together, regionally and globally, we can build a just, inclusive, and resilient order and achieve sustainable development. Such “whole of the world” coordination will ensure that no nation is left behind.

In conclusion, Nepal reaffirms its commitment to enhance regional cooperation within SCO. We support a rules-based, inclusive multilateral system for a sustainable future. Let us uphold the Shanghai Spirit. Let us strengthen friendships, partnerships, and good neighbourly relations. A resilient and prosperous SCO region is within our reach, when we are committed to act together.

Nepal are set to begin their journey in the AFC U-23 Asian Cup Qualifiers tonight, facing host nation Tajikistan in their opening match. 

The game will take place at Pamir Stadium in Dushanbe and is scheduled to kick off at 8:15pm Nepal time.

Nepal are in Group 'K' of the qualifiers, alongside Tajikistan, the Philippines, and Syria. 

The tournament is being held in a single round-robin format. 

Nepal will play their second match against Syria on September 6, followed by a clash with the Philippines on September 9. 

Syria and the Philippines are also set to face each other today in their group opener.

The top team from each of the 11 groups will earn a spot in the AFC U-23 Asian Cup, to be held in Saudi Arabia next year. In addition, the four best first-runner up teams across all groups will also qualify for the tournament. 

Nepal’s squad includes Krishal Moktan, Amit Tamata, and Bishal KC as goalkeepers; Bibek Gurung, Bishal Nepali, Lahan Subba, Nigma Lama, Ram Thapa, Shankar Tharu, and Semanta Thapa as defenders; Abhishek Syangtang, Ayush Ghalan, Aaron Thapa, Niraj Karki, Dipesh Gurung, Kritish Ratna Chhunju, Pujan Thapa, Sanjeev Lama, Santosh Khatri, Sujan Magar, and Sumit Shrestha as midfielders; and Rohan Khadgi and Nirajan Dhami as forwards.

Nepal has been studying hydrogen fuel since 2008. After nearly 17 years of research, the government has begun work on producing green hydrogen fuel. A memorandum of understanding has been signed with South Korean company G-Philos to establish a green hydrogen plant and fuel cell facility in Nepal.

The Investment Board Nepal (IBN) is preparing a detailed project report (DPR) to explore producing hydrogen fuel using around 20 megawatts of electricity. According to IBN spokesperson Pradyumna Prasad Upadhyay, the proposed project is estimated to cost about Rs 6 billion. Initially, only a small-scale production will be attempted, with plans to expand depending on the feasibility study.

The agreement was signed on Thursday by IBN CEO Sushil Gyawali and G-Philos CEO Ga Woo Park. As per the agreement, the company will prepare the DPR within 10 months of receiving a survey permit from the board.

G-Philos had submitted its proposal on April 15 for the establishment, development, and operation of a green hydrogen and fuel cell plant in a public-private partnership model. The 63rd meeting of the IBN decided to grant the survey permit.

Biraj Singh Thapa, a researcher and associate professor at Kathmandu University, welcomed the agreement, noting that KU has been conducting green hydrogen research and even demonstrated a hydrogen-powered car. He highlighted that the Hydrogen Policy 2023, along with tax exemptions on machinery and equipment and a five-year income tax holiday announced in the current budget, has drawn foreign interest in Nepal’s hydrogen sector.

According to the policy, machinery and equipment imported for green hydrogen production are exempt from all taxes and duties. This, Thapa added, is expected to attract both foreign and domestic investors. The 20 MW feasibility study will also assess whether the fuel can be used domestically or exported, and identify a potential plant location.

Kathmandu University established a Green Hydrogen Lab in 2020 to research the use of hydrogen in fertilizer factories, iron ore processing, and as a coal substitute in cement industries. Hydrogen has long been considered a potential renewable energy source, and its production could help Nepal meet its commitment to achieving net-zero carbon emissions.

Several institutions have studied Nepal’s hydrogen potential. Tribhuvan University and Western Michigan University jointly concluded that hydrogen could be produced using hydropower, reducing petroleum imports. The Asian Development Bank carried out a similar study in 2020, while the Water and Energy Commission Secretariat assessed possibilities in 2021. A study in 2022 further explored hydrogen-based fertilizer production.

Globally, countries including India, China, and the United States have already developed hydrogen roadmaps and policies. Nepal’s Hydrogen Policy 2023 also recognizes significant potential for hydrogen and related products from hydropower.

Hydrogen is produced by splitting water into hydrogen and oxygen using electricity. Roughly one kilogram of hydrogen can be extracted from nine kilograms of water, requiring about 50 kilowatt hours of electricity. With abundant water resources and surplus electricity, Nepal is well positioned to produce hydrogen.

Hydrogen can be stored as a liquid, gas, solid, or metal hydride, making it suitable for domestic use or export. Studies suggest that hydrogen could replace at least two percent of Nepal’s diesel imports. Given the size of the domestic diesel market—worth around Rs 71bn—green hydrogen could play an important role in diversifying Nepal’s energy mix and enhancing energy security over the next decade.

Prime Minister KP Sharma Oli has floated a proposal to make Nepal a full member of the Shanghai Cooperation Organization (SCO).

Addressing the SCO Plus meeting held in Tianjin, China on Monday, he said that Nepal is now eager to become a full member of the organization.

Saying that the SCO should be made more united, integrated and flexible, Prime Minister Oli recalled that Nepal has been participating as a dialogue partner since 2016.

“We want SCO to be more united, integrated and flexible which can face growing geopolitical, economic and environmental challenges.”

Meanwhile, Prime Minister Oli underscored the need to revive multilateralism.

“No country can remain secured alone, no people can be prosperous by dividing themselves,” the Prime Minister said. That is why multilateralism is the need of the hour.”

Expressing concern over the climate crisis, Prime Minister Oli said that the melting of ice in the mountains is putting the lives of billions of people at risk.

On a different note, he stated that terrorism, cyber attacks, pandemics and environmental crises are common problems.

Prime Minister KP Sharma Oli's economic and development advisor Dr Yubaraj Khatiwada has made it clear that no agreement was made on the issues relating to Nepal's support to China's Global Security Initiative (GSI) during the bilateral meeting held between PM Oli and Chinese President Xi Jinping. 

Dr Khatiwada said that the Nepal government is committed to its Constitution and non-aligned foreign policy, so Nepal can not be a part of any country's security strategy.

PM Oli had held a meeting with Chinese President Xi in the course of his visit to China for attending the Shanghai Cooperation Organization (SCO) Plus Summit in Tianjin on August 30.

In response to a question relating to China's statement which hinted that Nepal supported China's GSI, Dr Khatiwada said, "PM Oli's visit is chiefly for the participation in SCO Summit. Generally, in the sidelines of such a conference, no agreement and memorandum of understanding is made. It is not done either. Therefore, it is false to make publicity that Nepal supported GSI while no agreement was made on it."       

However, discussion was held on how both sides could forward the effective enforcement of Belt and Road Initiatives (BRI) Framework Agreement, he said, expressing concern over baseless rumour made viral on social networks. He urged everyone to spread the facts and understand sensitivity and veracity of news.

Dr Khatiwada further shared that other issues that featured during the bilateral discussion were strengthening of connectivity between Nepal and China, industrial and infrastructural development,  collaboration on health sector,  agriculture, investment, tourism, science and IT, sports, disaster management, people-to-people connection and Nepal's socioeconomic transformation. 

Just a few days ago in Siraha, rainfall prompted farmers to plant as much as possible despite the shortage of irrigation. On 2 Dec 2022, the headworks of a canal were rebuilt at Khuttikhola in Lahan Municipality-10, with assurances that it would provide irrigation. The Water Resources and Irrigation Development Division Office, Siraha, had signed an agreement with Multitech Construction Company for the construction of the headworks at a cost of Rs 85m, ultimately paying Rs 86m upon completion.

Nearly four years later, however, the structure has failed to provide any support to farmers.

Instead, politics has overshadowed the canal project. Construction remains uncertain due to disputes. Since the headworks were built at a location downstream of the water level, no water has been able to flow into the canal. This prompted the Office of the Auditor General to raise questions about the design in its 2024 annual report. “During the on-site inspection of the project, the headworks were built at a higher elevation than the river water level. This indicated that water could not be collected or distributed through the headworks without design improvements and additional construction work. As the design and contract placed the headworks at a higher elevation than the river water, operation assurance must be ensured,” the report stated.

During the foundation stone-laying ceremony, officials had declared the project would cost Rs 180m, promising that water would flow through the canal and even create a water park. The plan was to use the remaining funds for culvert construction and canal drainage. At that time, a culvert was also built from Grameen Chowk to the West Canal near JS Campus. But after the Auditor General’s report raised concerns, no additional budget was approved.

In the current fiscal year 2025/26, the Madhesh Province government allocated only Rs 1.5m for the canal. On Aug 4, the Irrigation Office, Siraha, awarded a contract worth Rs 800,000 to Shivam Construction of Lahan Municipality-1 for canal cleaning and drainage. However, when the gate of the headworks was opened and tested after the work was completed, river water did not flow into the canal. Instead, water that had accumulated in the canal flowed back into the river.

The gate has been ceremonially opened twice after performing pujas, but without success. Local resident Hanif Rain said, “Millions were spent on this project. The irrigation chief, technical staff, and contractor colluded in its construction.” He made a video of the issue and shared it publicly.

Another local, Devraj Pokharel, said, “There was no transparency or community discussion. Everything was done for their own convenience. If the canal is deepened further, locals will suffer. The Commission for the Investigation of Abuse of Authority should investigate and take action.”

After canal cleaning began, Hemant Yadav, chairperson of the Lahan Nagar Committee of the CPN-Maoist Center and leader of the Kisan Sangharsh Samiti, claimed water would flow within a week. But even after two weeks, no water has reached the canal. He now argues that if the canal is properly managed, water will flow. Meanwhile, the roads along the canal have begun sinking after excavation. However, Hasmat Ansari, head of the Siraha Irrigation Office, insists that more digging is needed due to level mismatches.

A technical team from the Irrigation Office recently re-examined the site. Irrigation sub-engineer Sanjeev Kumar Yadav said, “There is soil blockage up to 90 cm in places. Removing it will allow some water to rise. The culvert at Grameen Chowk will need to be demolished to divert water to the West Canal.”

According to Survey Office Lahan’s fieldbook, a culvert is recorded on land parcels Lot No 82 (15 katta 6 dhur) and Lot No 21 (1 bigha 17 katta 2 dhur). However, the landowner or responsible office is not mentioned. The culvert divides the canal southward and westward from Grameen Chowk. The Irrigation Office claims the canal could irrigate over 935 bighas across wards 2, 11, 12, 19, 20, 21, 22, and 23 of Lahan Municipality, along with areas of Laxmipur Patari, Sakhuwanankarkatti, and Bhagwanpur rural municipalities. The canal itself was dug more than 60 years ago. Today, much of it lies in market areas where locals have filled sections to create farmland.

Locals warn that releasing floodwater directly into the canal will increase risks in surrounding areas. According to elders, the canal dates back to the time of Prime Minister Chandra Shamsher. Initially, it provided some irrigation, but the headworks were washed away by floods within months. No further budget was allocated afterward. Later, when Bal Krishna Khand was irrigation minister, local leaders requested funding for new headworks. The ministry instructed the Water Resources and Irrigation Office to form a committee, but staff secretly appointed UML leader and then-mayor Muni Sah as chairperson. Despite repeated ministry requests, the committee received no funds.

On 2 Dec 2020, the Irrigation Office signed a contract for new headworks. On 8 Nov 2021, Mayor Sah laid the foundation stone, awarding the project to BP JV Lahan-7 for Rs 28m from the 2020/21 municipal budget. The contractor, who signed the agreement on 27 Dec 2020, was required to finish by 1 Nov 2021. However, due to poor construction, the concrete structure collapsed before completion, further blocking the canal. Crores of rupees in government investment were wasted.

In the 2022 local elections, Congress candidate Mahesh Chaudhary defeated Sah to become mayor. Chaudhary resumed canal work by allocating Rs 80m from the 2024/25 municipal budget. The plan included building an underground drainage system to channel water south from the headworks and improving roads. Initially, there was no opposition when the DPR was published, the contract announced, and the foundation stone laid. But once construction began, a Kisan Sangharsh Committee was formed, and protests erupted. During demonstrations, structures built on the canal were vandalized.

The committee later filed a case at the Rajbiraj High Court, which issued an interim order to continue work in a balanced way without damaging the canal’s appearance. The writ was eventually dismissed, as the court ruled the petitioners’ demands were insufficient.

Chinese President Xi Jinping has said that China does not want to be involved in the Nepal-India border dispute, underlining that both sides should resolve the issue on their own.

Chinese President Xi Jinping said so during a meeting with Prime Minister KP Sharma Oli, Amrit Bahadur Rai, Secretary at the Ministry of Foreign Affairs, said.

During the meeting, Prime Minister Oli raised the recent agreement reached between India and China to reopen the trade through Lipulekh pass.

Mentioning that the territory belongs to Nepal, PM Oli told President Xi that the Nepali government has expressed serious objection to the issue.

In response, President Xi said that the Lipulekh route has been a traditionally used route.

Secretary Rai, however, said that China has made it clear that it will not take any sides in the Nepal-India border row.

Nepal's Prime Minister, KP Sharma Oli, has raised a strong objection to the recent agreement between India and China to resume trade through the Lipu Lekh Pass, a disputed territory claimed by Nepal.

PM Oli who is in China to attend the Shanghai Cooperation Organization (SCO) Summit 2025, as well as activities to commemorate the 80th anniversary of the victory in the Chinese People's War of Resistance against Japanese Aggression and the World Anti-Fascist War, met with Chinese President Xi Jinping on Saturday, where he emphasized that the Lipu Lekh Pass is part of Nepalese territory.

A statement from Nepal's Ministry of Foreign Affairs outlined Oli's position: "Referring to the recent understanding reached between India and China on border trade through Lipu Lekh Pass, the Rt. Hon Prime Minister stated that the territory belongs to Nepal and that the Government of Nepal has lodged a strong objection."

This issue stems from the agreement signed on August 19 during the visit of Chinese Foreign Minister Wang Yi to India. Both countries agreed to resume trade from Lipu Lekh, a site that remains disputed between Nepal and India. Following the agreement, Nepal’s Ministry of Foreign Affairs immediately issued diplomatic notes to both nations, expressing its objections.

In 2020, Nepal published a new political map incorporating Kalapani, Lipu Lekh, and Limiyadhura as part of its territory.

It remains unclear how the Chinese side has responded to Prime Minister Oli's statement. Prior to his departure to China for the SCO summit, PM Oli had confirmed that he would raise the Lipu Lekh issue with both India and China. It is unclear yet whether Oli and Indian Prime Minister Narendra Modi will meet on the sidelines of SCO meeting.

In the bilateral meeting, Nepal PM expressed the hope that projects listed under the Belt and Road Initiatives (BRI) would be advanced, adding that Nepal seeks Chinese support in the areas of fertilizer, petroleum exploration, human resource development, climate resilience and other areas.

Speaking highly of the China-Nepal good-neighborly friendship in the past seven decades, Xi said that the high-quality Belt and Road cooperation between the two countries is advancing steadily at present, according to China. China is willing to work with Nepal to carry forward the traditional friendship and facilitate the greater progress of the China-Nepal Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity, Xi noted.

Joint efforts should be made to enhance connectivity programs covering port, highway, power grid, aviation, communications and other fields, and cooperation in sectors including industry, agriculture and animal husbandry, new energy, environmental protection, oil and gas, artificial intelligence, education, health, as well as law enforcement and security, should be advanced, he added.

According to Chinese official media, Oli said that Nepal supports the China-proposed Global Development Initiative, Global Security Initiative and Global Civilization Initiative, and expects China to play a greater role in international affairs.

The Members of Parliament (MPs) have suggested that the government should take diplomatic measures to claim Nepal's territory. 

Speaking in today's House of Representatives (HoR) meeting, the lawmakers asked the Prime Minister, KP Sharma Oli, to clearly communicate with the leaders regarding the agreement signed between India and China on Lipulekh, Limpiyadhura and Kalapani without informing Nepal.     

On the occasion, CPN (Unified Socialist)'s lawmaker Rajendra Prasad Pandey said that the land of Lipulekh, Limpiyadhura and Kalapani belongs to Nepal and holds the land ownership certificate too after the Sugauli Treaty. 

He added that it is also evidently proven from the map kept in the American and British libraries. 

Pandey viewed that a country could be small or big in size but there could be no compromise on the nation's sovereignty. 

He also called for a special initiative from the government to forge a national consensus to claim the Nepali territory. 

Likewise, lawmaker Ranju Kumari Jha of the Janata Samajwadi Party Nepal expressed confidence that the PM will take steps to claim Nepal's land through dialogue and diplomatic efforts during his China visit. 

Similarly, lawmaker Prem Suwal of the Nepal Workers Peasants Party urged the government to safeguard Nepal's territory as stated in the Sugauli Treaty.

Lawmaker Maina Karki also drew the government's attention to settle the border issues through diplomatic means.

In May 2024, Kathmandu was declared as the world’s most polluted city, according to real-time data from the Air Quality Index (AQI). Ranking 162 on the index, Kathmandu surpassed Chiang Mai in Thailand and Medan in Indonesia, raising alarms about the growing air quality crisis in South Asia.

Similarly, the World Bank released a report in June 2025 stating that air pollution is a major factor for death and disability in Nepal. “Single-sector solutions are not sufficient to meet any clean air target. Public policy and investment need to optimize air quality actions across sectors, prioritizing those with the most cost-effective solutions,” the report states.

Air pollution reduces life expectancy by 3.4 years for the average Nepali and causes approximately 26,000 premature deaths annually. In addition to health, air pollution impacts labor productivity, tourism, and the aviation sector. The economic cost of poor air quality is equivalent to more than 6 percent of Nepal’s Gross Domestic Product (GDP) each year.

Experts attribute the surge in pollution levels to a combination of increasing temperatures and widespread forest fires that have led the Kathmandu Valley to the state. This alarming spike underscores a broader regional crisis: air pollution in South Asia is cutting lives short at an unprecedented rate.

The data from the Air Quality Life Index (AQLI), developed by the University of Chicago’s Energy Policy Institute reveals that air pollution remains the single greatest external threat to life expectancy in South Asia. The report shows that the average life expectancy in the region is reduced by three years due to air pollution. In the most polluted areas, that figure exceeds eight years. Across India, Bangladesh, Nepal, and Pakistan, the health burden from particulate pollution is nearly twice that of childhood and maternal malnutrition, and more than five times greater than that of unsafe water and sanitation.

This data makes clear that particulate pollution is the world’s greatest external risk to human health. Its impact on life expectancy is comparable to that of smoking, more than four times that of high alcohol use, five times that of transport injuries like car crashes, and more than six times that of HIV/AIDS.

Nearly 2bn people in South Asia are breathing air that far exceeds the World Health Organization (WHO) guideline for PM₂.₅—fine particulate matter known to damage lungs and the cardiovascular system. Most countries in the region are also failing to meet their own, far more lenient, national air quality standards.

In Nepal, PM₂.₅ concentrations reached 38.3 µg/m³ in 2023—a 10 percent increase over the previous year. According to the AQLI report, “The average Nepali could gain three and half years of life if the country met WHO air quality standards. In heavily polluted districts such as Mahottari and Rautahat, residents could gain more than five and half years of life expectancy,” the report states.

In response, the government has implemented an Air Quality Management Action Plan 2020 for the Kathmandu Valley. The strategy focuses on strengthening emissions monitoring and data collection, regulating polluting sectors like transport, brick kilns, and construction and promoting sustainable urban planning and eco-friendly infrastructure. Experts warn that without aggressive action, the health crisis will worsen.

Globally, pollution increased slightly in 2023, with wildfire-driven particulate matter emerging as a new challenge, even in developed countries. In Canada, PM₂.₅ levels doubled, marking the highest pollution in 26 years. Wildfire smoke affected vast swaths of the US, pushing several Midwest and Southern counties into the ranks of the nation’s most polluted—surpassing California for the first time in five years.

“We are now stuck living with air pollution concentrations that are the dangerous ghost of the fossil fuels burned since the Industrial Revolution,” says Michael Greenstone, AQLI co-creator and Milton Friedman Distinguished Service Professor at the University of Chicago. “Even countries that have earnestly spent decades cleaning up their air can’t escape these ghosts and the shorter and sicker lives they deliver.”

A significant barrier to tackling pollution is the lack of real-time air quality data. According to AQLI again, nearly 70 percent of the world’s population lives in countries with fewer than three air quality monitors per million people and that leaves 5bn people—many in the most polluted regions without access to basic information about the air they breathe

“Access to information is critical,” says Christa Hasenkopf, director of the Clean Air Program at EPIC. “While data can catalyze action, it must be backed by political will, ambitious policy, and consistent enforcement.”

If global air quality were brought in line with WHO guidelines, the average person could gain 1.9 additional years of life, saving a combined 15.1bn life-years worldwide. Yet, for South Asia, the need is especially urgent. Pollution in the region rose 2.8 percent from 2022 to 2023, following a brief dip the year prior. Despite temporary improvements, the trend remains dire—reinforcing that particulate pollution is not just a public health concern, but a full-blown humanitarian crisis.

Each year, the AQLI takes on a different topic related to air pollution. This year, the report focused on access to air quality information—a topic EPIC has been deeply involved with over the last decade, including through the AQLI. When people understand that the air they breathe is harmful to their health, they can take steps to reduce the hazard by purchasing air purifiers, wearing masks, limiting time outdoors, and using the data to inform policy actions.

“The analysis shows that improving life expectancy in South Asia will require policies that bring air quality in line with current standards and, over time, move toward stricter limits. Evidence from other regions demonstrates that targeted, sustained action can rapidly reduce PM₂.₅ and deliver measurable gains in longevity”, says AQLI Director Tanushree Ganguly. “Throughout history, countries have grown and developed while improving air quality. Targeting fossil fuels at their source will help clean local air and combat climate change. But countries need better data and stronger policies to make that happen.”

Nepal’s rapid progress in digital finance is a well-documented success story. Mobile wallets and QR codes have fundamentally reshaped daily commerce, creating one of South Asia’s most dynamic payment infrastructure. This achievement has laid a vital foundation for a modern economy. Yet, this very success has created a significant imbalance. The nation's fintech ecosystem is heavily tilted toward payments, while the equally crucial domains of credit and investment remain underdeveloped.

While we have solved the problem of how to pay, the more pressing challenge of how to grow remains largely unaddressed by technology. This is more than a theoretical concern. It has tangible economic consequences. The country’s small and medium enterprises (MSMEs), the engine of job creation, face a credit gap estimated in the billions of dollars. Millions of households have savings in low-yield accounts that could be mobilized for productive investment. This imbalance represents a significant missed opportunity for fostering entrepreneurship, democratizing wealth, and accelerating economic growth.

The roots of this lopsided development are twofold: regulatory frameworks that haven’t kept pace with technology, and an institutional focus that has naturally prioritized payments. Key legislation like the Bank and Financial Institutions Act (BAFIA) was designed for a traditional banking era and lacks specific provisions for emerging models like digital-only lenders or peer-to-peer platforms. The Securities Act is similarly silent on innovations like crowdfunding or robo-advisory. This legal ambiguity leaves innovators in a grey area, unable to scale their solutions within a clear, regulated framework.

In addition to this, the institutional focus has logically centered on strengthening the payment systems, which has been essential. However, this has meant that the equally important areas of digital credit and investment have received less strategic impetus. The launch of the Regulatory Sandbox recently is a landmark step forward, but its initial focus on payments, while understandable, limits its potential. What was intended as a gateway for innovation risks becoming a walled garden if its scope is not expanded. To build a more resilient and dynamic digital economy, a balanced approach is essential. This requires a clear vision and decisive action on two fronts: modernizing policy and reimagining the tools for innovation.

First, the regulatory environment needs to evolve. A clear roadmap for amending key financial acts is necessary to create legal categories for new fintech players. This would provide them with a clear path from sandbox experimentation to full-scale, regulated operation, fostering responsible innovation while safeguarding the financial system. Alongside legislative updates, a more consolidated approach to fintech governance could be considered. A dedicated unit or department focused on the full spectrum of financial technology from payments to credit and investment could provide the specialized expertise and coherent policy direction needed to guide the market’s next phase.

Second, the Regulatory Sandbox should be empowered to become a true engine for full-spectrum innovation. Building on its initial success, its scope must be broadened. The next cohort of the sandbox could be transformative if it invited innovators to tackle the economy’s most significant gaps. Imagine a stream dedicated to MSME finance, testing PAN-based digital micro-loans that leverage alternative data to extend credit to viable businesses. Another could focus on retail investment, piloting robo-advisory services and micro-investment platforms to bring first-time savers into the capital markets. A third stream could enable regulated crowdfunding platforms, allowing the Nepali diaspora to invest directly in promising local startups.

Global experience shows this path is both practical and powerful. India has created specific licenses for P2P lenders, while Kenya’s M-Shwari pioneered mobile credit, demonstrating that innovation and regulation can and must evolve together. These examples provide proven models for safely incorporating new financial tools into the mainstream economy. The challenge now is to build upon the remarkable success of our payment infrastructure. Payments are the rails, but the real economic journey involves what runs on them: credit that fuels businesses, and investments that build wealth. By modernizing legal frameworks and expanding innovation initiatives, Nepal can correct its current imbalance. The goal is to create a financial system that is not only digitally efficient but also inclusive, dynamic, and capable of funding the nation's growth for decades to come. The time for this next digital leap is now.

The author is a director of Nepal Rastra Bank

I came here to grow. To learn. To lead. To bring life back into the soil. I thought agriculture would root me in purpose in people, in innovation, in change. But semester after semester, the only thing that’s truly growing is my frustration. Let me tell you what it’s really like to be an agriculture student in Nepal. The rotting truth that nobody wants to talk about.

When I entered our college what I found was a dying curriculum, tired teachers, empty labs, and a system that feels like it's forgotten us. We’re being taught from manuals written a decade ago. New knowledge? New technology? Nowhere in the syllabus. Precision farming, climate smart agriculture, vertical farming we hear these terms but never touch them. Our lab classes are dry theory on paper. The microscope is broken. The seeds are missing. The equipment is "coming next year." Always next year.

And our teachers when they’re here are often overworked. Some semesters, we don’t even get them. One teacher arrives, rushes through a six month course in two days, and then vanishes. We copy notes. Memorize slides, highlight sentences we don’t understand. Then we walk into exams like sheep heading for slaughter. Sit for practical exams that are anything but practical. Write definitions of tools we’ve never seen.

Time runs out. The course is never completed. Yet the exam arrives like a storm, and we’re left scrambling. Nobody teaches how to think, how to apply, how to survive. Just pass or fail. More than 70 percent of students fail repeatedly—and no one asks why.

There’s no mentorship. No industry linkage. No exposure. No internships. And every time we raise questions, we hear the same thing: “budget chaina.” They say they do not budget for basic learning, for upgraded classrooms, for the internet, for practical tools. But they have plenty of budget for events, speeches and elections. And the main thing for this is politics. Yes, politics poisons everything. Student parties dominate every corner of our campus life. If you’re not a member of some political group, you’re not getting on stage, you’re not leading any events, you’re not getting your name on any notice. And if you are, you get everything even if you haven’t earned it.

They say student unions are meant to protect us. What we see is power games. Vote campaigns. Threats. Fights that erupt into real violence. Heads get smashed. Classrooms get locked. And you’re either with them or invisible. Opportunities? Leadership roles? Exposure? Reserved for those in politics. The rest of us just survive. Sometimes, fights break out. Literal ones. Blood on campus floors. People hospitalized over student elections. And we call this education. We are silenced in the name of discipline. Told not to complain. Told this is how it’s always been. But we are tired. We are breaking down.

No one talks about the mental load we carry. The anxiety. The burnout. The breakdowns in hostel rooms. The pressure to succeed in a system designed to make you fail. The constant academic pressure, the humiliation of failing, the fear of asking questions, the silence in classrooms where curiosity once lived. Many of us are depressed. Many have panic attacks before results. But there is no counselor. No system. No one notices unless we collapse.

I am an agriculture student who once believed in change. I still do but not like this. I don’t want the juniors to walk this same road, only to lose their voice halfway. Because no student should come here full of life only to leave burnt out, bitter and broken. Admissions in agriculture campuses are declining year after year not because agriculture isn’t important, but because we’ve made it unbearable.

We wanted to grow. But this system is built to bury us. And unless something changes, more of us will keep withering in silence. To the system, we are not machines. We are not vote banks. We are not pages to be marked red for wrong answers you never bothered to teach us. We are not your failed harvest. We are the seeds of change. So stop burying us alive. We are students. We are the future of agriculture and we refuse to rot in silence.