NEFport 63

ISSUE 63 | JANUARY 2026

Artificial Intelligence in Nepal Charting the Next Frontier

Nepal Factsheet

1

Koshi Province

2 Madhesh Province 3 Bagmati Province 4 Gandaki Province

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6

5 Lumbini Province 6 Karnali Province 7 Sudurpashchim Province

4

5

3 2

1

KEY ECONOMIC INDICATORS GDP (Preliminary estimate for FY 2024/25)****

NPR 6,107 billion (USD 43.21 billion)

GDP growth rate (November 2025)*

4.6%

Inflation (y-o-y)***

1.11%

24.07%

Agriculture Sector (% of GDP)****

25.16%

HDI Value**

0.622

Industry Sector (% of GDP)****

12.83%

HDI Rank**

145

Service Sector (% of GDP)****

62.01%

GNI (per capita)**** Gross Capital Formulation (% of GDP)****

NPR 206,424 (USD 1,460.48)

* World Bank, Nepal Development Update1 ** HDI Figure from Human Development Report of UNDP2 *** Current Macroeconomic and Financial Situation of Nepal Based on Four Month Data 2025/263 **** Current Macroeconomic and Financial Situation of Nepal Based on Annual Data 2024/254

Contents NEPAL FACTSHEET 2 EDITORIAL 5

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GENERAL OVERVIEW 6 Political Overview

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International Economy

13

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MACROECONOMIC OVERVIEW 18

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SECTORAL REVIEW 29 Agriculture and Livestock 30 Education 35 Energy and Environment 38 Health 43 Information and Communication Technology 47 Infrastructure and Real Estate 51 Tourism 55

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MARKET REVIEW 60 Financial Market

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Capital Market 68

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SPECIAL SECTION: ARTIFICIAL INTELLIGENCE IN NEPAL: CHARTING THE NEXT FRONTIER 72 OTHER WORKS BY NEPAL ECONOMIC FORUM 82 ENDNOTES

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Issue 63: January 2026 Publisher: Nepal Economic Forum Website: www.nepaleconomicforum.org P.O Box 7025, Krishna Galli, Lalitpur – 3 Nepal Phone: +977 1 554-8400 Email: info@nepaleconomicforum.org Contributors: Aashutosh Sharma Aaryan Kuikel Anushka Tuladhar Heykha Rai Laboni Pradhan Mahotsav Pradhan Manju von Rospatt Nasala Prajapati Pawan Raj Dallakoti Pransu Khakurel Sampada Regmi Sanjit Tuladhar Peer Reviewers: Arya Awale Rojesh Bhakta Shrestha Salina Kafle Sujeev Shakya Special Section – Authors: Bower Group Asia Parag Shrestha, Managing Director and Head of Strategy, Fusemachines Pratyush Acharya, Data Scientist, SecurityPal AI Design & Layout: Thuprai Solutions support@thuprai.com Coordinators: Salina Kafle and Suyasha Shakya Cover Design: Aashima Chalise Editor: Suyasha Shakya This issue of Nefport takes into account news updates from September 1, 2025 to November 31, 2025.

The USD conversion rate for this issue is NPR 141.34 to a dollar, the quarterly average for this issue.

Reproduction is authorized provided the source is acknowledged.

The views and opinions expressed in the article/publication are those of the author(s) and do not necessarily reflect the official opinion of Nepal Economic Forum. Neither the organization nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.

Executive Board Members: Alpa B. Shakya Shayasta Tuladhar Sudip Bhaju Sujeev Shakya Advisory Board: Elisabeth von Capeller Francois-Xavier Leger Giuseppe Savino Kenichi Yokoyama Kul Chandra Gautam Mahendra Krishna Shrestha Saloni Sethia Shraddha Gautam Sneh Rajbhandari Senior Fellows: Aman Pant Apekshya Shah Sijan Thapa Suman Basnet

NEFPORT ISSUE 63 – JANUARY 2026

Editorial The review period for this edition of the NEFport, from September to November 2025, began with the unprecedented Gen Z movement, an uprising against corruption triggered by a social media ban. What followed was a complex interplay of political restructuring, economic challenges, and social tension.

Yet, despite initial fears, the quarter ended on a more hopeful note than many had anticipated.

Meanwhile, amidst the uncertainty and political unrest, Nepal's major festivals provided moments of collective joy and normalcy. Dashain, celebrated from September 22 to October 6, was followed by the festival season continuing with Tihar and Bhai Tika through late October. These celebrations offered Nepalis a chance to reconnect with tradition and family during an otherwise turbulent period.

After the Gen Z-led protests, Nepal entered a major political transition. As the protest cycle reached its peak, events moved with unexpected speed. By the night of September 13, the immediate crisis appeared to have receded. The Parliament was dissolved, an interim government under former Chief Justice Sushila Karki was formed, and elections were announced for March 5, 2026.

Within a span of just 120 hours, Nepal underwent a rapid and unprecedented political reset. On September 14, the prohibitory order was lifted and the Nepali Army returned to its barracks, signaling a cautious return to normalcy. The international airport, closed for only 36 hours, resumed operations, and daily life quickly regained momentum. From September 12 onward, citizens played a visible role in recovery, clearing debris, restoring damaged infrastructure, assisting police stations, and supporting state-led stabilization efforts. Social media evolved into a parallel accountability mechanism, as communities identified individuals involved in arson and looting, recovered stolen goods, and journalists exposed misinformation networks to support law enforcement.

This swift civic mobilization reflected both public exhaustion with unrest and a collective determination to restore order during a critical political transition.

Despite the intense political upheaval, Nepal's stock market remained remarkably resilient throughout the period, showing no major crashes and maintaining steady trading levels. This stability, supported by strong remittance inflows and low inflation, reflects underlying confidence in Nepal's economic fundamentals. Combined with proactive steps by the interim government and ongoing election preparations, these developments suggest that Nepal's institutions are capable of withstanding turbulence while moving toward meaningful reform.

Meanwhile, international organizations, led by United Nations (UN) in Nepal, expressed concern over the violence during the protests and called for independent investigations. Additionally, the UN and other humanitarian agencies offered support to promote dialogue, transparency, and human rights during the transition period. Countries around the world also responded. The

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Government of India welcomed the formation of the interim government, calling Nepal a “close neighbor, democratic friend, and long-term development partner,” and pledged to work for the prosperity of both nations. People's Republic of China also congratulated Prime Minister Karki, reaffirming a time-honored friendship and saying it stood ready to strengthen cooperation with Nepal. This external support from UN agencies and major neighboring powers underscored the international community’s hope that the new government will handle the transition peacefully and steer Nepal toward stability, reform, and credible elections.

Nepal is now entering a crucial election-preparation phase. The Election Commission has announced parliamentary elections for March 5, 2026.

Throughout November, voter registration efforts intensified, resulting in a surge of new registrations, particularly among young voters. The government also further approved the Integrated Election Security Plan 2082 to ensure peaceful and fair polling. As political parties prepare their campaigns, the coming quarter will be defined by electoral readiness and the growing influence of Gen-Z voters poised to shape Nepal's political future.

NEFport 63 focuses on Artificial Intelligence in Nepal, a topic that has gained increasing relevance amid rapid global and regional shifts in technology governance. This edition examines Nepal’s AI trajectory through the lenses of international regulatory trends, domestic readiness, and longer-term strategic choices related to technological sovereignty. The three articles in this edition draw on global policy analysis, industry experience, and technical expertise to assess how Nepal can navigate the opportunities and risks associated with AI adoption.

Bower Group Asia situates Nepal within broader Indo-Pacific developments, analyzing evolving AI regulations, supply chain resilience, cybersecurity frameworks, and data infrastructure trends shaping the technology landscape in 2026. Parag Shrestha (Managing Director and Head of Strategy, Fusemachines) examines Nepal’s AI readiness, highlighting gaps in policy implementation, digital infrastructure, and capacity building. Finally, Pratyush Acharya (Data Scientist, SecurityPal AI) explores the structural risks of technological dependency, focusing on constraints related to data, computing infrastructure, and talent retention.

Together, these contributions offer a comprehensive perspective on the policy and institutional choices that will shape Nepal’s AI future.

As always, we would like to express our gratitude to everyone who has contributed voluntarily, as well as to our readers and patrons who have supported and engaged with us throughout our journey.

We are working continuously on recalibrating our NEFports to make them more useful to our readers. Please feel free to write to us at info@nepaleconomicforum. org or to any of our social media handles for further comments or feedback.

Sujeev Shakya

Chair, Nepal Economic Forum

1

General Overview

NEFPORT ISSUE 63 – JANUARY 2026

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Political Overview The review period, from September 1 to November 30, 2025, marked a dramatic rupture in Nepal’s political landscape. Amidst rising frustration over corruption and nepotism, a social media ban triggered youthled demonstrations, popularly known as the Gen Z movement, that, while initially peaceful, escalated into violent confrontations whereby police action claimed at least 76 lives and caused over 2,000 injuries. The crisis forced Prime Minister KP Oli’s resignation, the dissolution of Parliament, and the formation of an interim government under former Chief Justice Sushila Karki with elections scheduled for March 5, 2026. As a result, the quarter was largely marked by the creation of the interim council of ministers; preparation for the upcoming elections, including an expansion of the voter roll by 837,094 new voters; and the establishment of a high-level commission to investigate incidents during the Gen Z protest.

LEGISLATIVE UPDATES September Protests Overthrow Incumbent Government and Install Interim Administration In the week of September 8 and 9, 2025, nationwide youthled protests, popularly referred to as the Gen Z movement, escalated into Nepal’s most significant political upheaval in recent history, ultimately resulting in the collapse of the incumbent government led by KP Oli, and the formation of an interim administration under former Chief Justice Sushila

Karki. In an environment where the public’s long-standing frustration over corruption and political nepotism was in the spotlight with the “#NepoBaby” trend, protests were triggered by the government’s decision on September 4 to shut down 26 unregistered social media platforms under the Social Media Directives 2080 BS.11 At what began as peaceful protests across the nation on September 8, government security forces used live ammunition that killed at least 19 protestors that day and injured

FACTSHET

Nepal’s Particulars

Rank /

Score

Status

Democracy Index 20245

96

4.60/10

Freedom in the World Index 20256

Partly Free

62/100

Press Freedom Index 20257

90

55.2/100

Economic Freedom Index 20258

131

52.5/100

Fragile States Index 20249

57

78.0/120

Corruption Perception Index 2024 10

107

34/100

hundreds, prompting widespread public outrage and demands for accountability.12 Amidst mounting pressure, the Home Minister, Ramesh Lekhak, resigned later that evening, and the government lifted the social media ban.13 However, the crisis deepened on September 9 as protestors defied curfew orders imposed within Kathmandu’s Ring Road, demanding the resignation of the Prime Minister and accountability for the killings. While the Prime Minister eventually resigned that afternoon, public and private property, including the Parliament, Singha Durbar, and

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Supreme court continued to be destroyed across the country, prisoners escaped, and the protests were allegedly infiltrated by arsonists and people with political agendas.14 The Nepal Army was deployed later that night to restore order as violence spread to government offices, police stations, corporate premises, and private residences.15 Over the course of the two days, at least 76 people were killed and more than 2,000 were injured, out of which 45 were ultimately declared martyrs by the interim government.16 Amid continued instability, consultations were initiated between the President, the Nepal Army, and representatives of the protest movement to identify a political exit from the crisis.

Former Chief Justice Sushila Karki emerged as a consensus candidate for interim leadership, popularly also reflected in a Discord vote, reflecting public demand for a non-partisan and institutionally credible transition.17 Thus, following negotiations, the House of Representatives was dissolved, and on September 12, Sushila Karki was appointed Interim Prime Minister with a mandate to stabilize the country and oversee an election to be held on March 5, 2026.18

period amid sustained political pressure and public scrutiny.

Overall, while the inclusion of technocrats and non-partisan figures was widely interpreted as an effort to ensure administrative stability and credibility ahead of the scheduled elections, several appointments and possible appointments generated debate.

The appointments made until January 3, 2026, have been listed in Table 1.

EXECUTIVE UPDATES Prime Minister Karki Appoints Council of Ministers in Multiple Phases Prime Minister Karki formed the interim Council of Ministers in multiple phases across the review

Table 1. List of Council of Ministers19 Appointment Date September 12, 2025

Name Sushila Karki

September 15, 2025 September 22, 2025

Role Prime Minister

Minister of Federal Affairs and General Administration

Kul Man Ghising

Minister of Physical Infrastructure and Transport Minister of Urban Development

September 15, 2025

Om Prakash Aryal

Minister of Home Affairs

Former Secretary at the Ministry of Finance

Former Managing Director of the Nepal Electricity Authority (NEA)

Constitutional lawyer

Minister of Industry, Commerce, and Supplies

September 22, 2025 Anil Kumar SInha December 12, 2025

Former Chief Justice

Minister of Finance Rameshore Prasad Khanal

Minister of Energy, Water Resources, and Irrigation September 15, 2025

Previous Achievements

Minister of Law, Justrice, and Parliamentary Affairs Minister of Culture, Tourism, and Civil Aviation

Former Justice at the Supreme Court

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September 22, 2025

Mahabir Pun

Minister of Education, Science, and Technology

Founder of the National Innovation Centre and Magsaysay Awardee

September 22, 2025

Madan Prasad Pariyar

Minister of Agriculture and Livestock Development

Chairman of the Samata Foundation

September 22, 2025

Jagdish Kharel

Minister of Communications and Information Technology

Former host of Image Channel’s talk show ‘Hot Seat’

October 26, 2025

Sudha Gautam

Minister of Health and Population

Former Secretary at the Ministry of Health

October 26, 2025

Bablu Gupta

Minister of Youth and Sports

Founder of the charitable organization ‘100 Group’

December 12, 2025

Kumar Ingnam

Minister of Land Management, Cooperatives, and Poverty Alleviation

Former Campus Chief at the Kathmandu School of Law

December 12, 2025

Rajendra Singh Bhandari

December 19, 2025 December 12, 2025

December 12, 2025

December 26, 2025

Minister of Labour, Employment, and Social Security Minister of Water Supply

Madhav Prasad Chaulagain

Shradha Shrestha

Balananda Sharma

JUDICIAL UPDATES Supreme Court Forms Constitutional Bench to Judge Writs Against HoR Dissolution and Interim Government Formation On October 29, 2025, the Supreme Court formed a fivemember Constitutional Bench to adjudicate writ petitions challenging the dissolution of the House of Representatives and the appointment of former Chief Justice Sushila Karki as the interim Prime Minister following the Gen Z protests.20 The bench, led by Chief Justice

Former Additional Inspector General of Nepal Police

Minister of Forests and Environment

Public health expert; author of book ‘Sapadlaksha Karnali’

Minister of Women, Children, and Senior Citizens

Senior Manager at the Tourism Marketing and Promotion Department of the Nepal Tourism Board (NTB)

Minister of Foreign Affairs

Former Nepal Army Lieutenant General; Former Chief of the COVID-19 Crisis Management Committee

Prakash Man Singh Raut, includes Justices Sapana Pradhan Malla, Kumar Regmi, Hari Prasad Phuyal, and Manoj Kumar Sharma. The creation of the bench came due to several writs being filed against the formation of the interim government, primarily by members of the Communist Party of Nepal – United Marxist Leninist (CPN-UML) and the Nepali Congress.21 Immediately following its appointment and a preliminary hearing of the writs, the Constitutional Bench refused to issue an interim order restricting the government from carrying out its duties.22 Instead, it ordered the defendants,

including the Office of the President and the Office of the Prime Minister, to submit their written responses to the writs within seven days through the Office of the Attorney General.

High-Level Commission Formed to Investigate Incidents During Gen Z Protest On September 21, 2025, the government formed a threemember high-level commission of inquiry to probe into the events during the protests on September 8 and 9, particularly the use of excessive force by security personnel.23 The

NEFPORT ISSUE 63 – JANUARY 2026

commission, led by former Judge Gauri Bahadur Karki, also includes the former Assistant Inspector General (AIG) of Nepal Police Bigyan Raj Sharma, and legal expert Bishweshwor Prasad Bhandari. While the commission was given three months to study the issue and submit a report, on December 17, 2025, commission officials requested a onemonth extension.24 As part of its investigation, the commission has been probing security officials and other individuals connected to the crackdown, including Former Home Minister Ramesh Lekhak.

ELECTION UPDATES 837,094 New Voters Register for March Elections In the past quarter, a major highlight was Nepal’s interim government and the Election Commission (EC) undertaking significant procedural adjustments to expand the electoral roll ahead of the March 5 elections. A governmentissued ordinance amended the Voter Registration Act, 2073 to permit fresh voter listing after the announcement of election dates, as opposed to the legal barrier whereby voter registration is not allowed once election dates are announced.25 According to the ordinance, citizens who would turn 18 by March 4, 2026 were eligible to register to vote by the initial deadline of November 16, 2025 without needing to visit their home district center. Towards the end of the deadline, after lobbying by the interim government, the EC also integrated the National

Identity Card (NID) database with the voter registration system, thereby allowing eligible citizens to register online without visiting EC offices.26 Additionally, in response to high demand at the registration centers, the EC extended the voter registration deadline to November 21, 2025 after multiple requests from the Prime Minister’s Office.27 Ultimately, it was reported that an additional 837,094 new voters had registered, including 492,180 via NID-based registration and 344,914 through traditional biometric enrollment.28

BILATERAL / MULTILATERAL UPDATES Government of Nepal Extends USD 200,000 (NPR 28.27 Million) to Sri Lanka Amidst Devastating Floods The Government of Nepal, through the Ministry of Foreign Affairs, announced on November 30, 2025 that it would provide financial assistance of USD 200,000 (NPR 28.27 million) to Sri Lanka to support emergency relief and recovery efforts following severe floods and landslides triggered by Cyclone Ditwah.29 The extreme weather system, which made landfall on November 28, 2025, brought torrential rains across the country, causing widespread flooding, deadly landslides, and extensive infrastructure damage.

The disaster ultimately affected an estimated 2 million people and over 500,000 families across all 25 districts.30 As a result, Sri Lanka declared a state of emergency and appealed for international aid, prompting Nepal’s gesture of

solidarity amid mounting human and material losses.

UAE Mandates Police Clearance Report for Nepali Visa Applicants On November 26, 2025, the United Arab Emirates (UAE) revised its visa requirements for Nepali citizens by making a police clearance report issued by the Nepal Police mandatory for all visit and work visa applications.31 The requirement was introduced after the temporary suspension of UAE visit and work visas for Nepali citizens following security concerns linked to the Gen‑Z protests.

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Outlook As Nepal moves closer to the March 2026 elections, the political landscape is expected to remain dynamic, with efforts being made to ensure free and fair elections with multiple entities working to combat the longstanding monopoly of the Communist Party of Nepal - Unified Marxist-Leninist (CPN-UML), the Nepali Congress, and the Communist Party of Nepal (Maoist Centre) led by KP Oli, Sher Bahadur Deuba, and Pushpa Kamal Dahal respectively. The upcoming quarters will be crucial in determining whether the Gen Z movement translates into lasting political influence, with the interim government’s neutrality, voter participation, and public scrutiny of political actors likely to shape both the credibility of the elections and the trajectory of Nepal’s democratic institutions.

NEFPORT ISSUE 63 – JANUARY 2026

International Economy In the review period, from September to November 2025, the global economy seemed to be at a critical point navigating both moderate stability and risks. Major institutions, like the International Monetary Fund (IMF), projected a gradual slowdown in global growth to 3.2% in 2025 and a fall in inflation to 4.2% while also alarming the world on soaring global public debt which is on track to exceed 100% of global GDP by 2029. This economic backdrop was further defined by a significant recalibration of global trade and alliances. The first Donald Trump-Xi Jinping meeting in six years, an upgraded China-ASEAN free trade pact, and the re-imposition of China’s ban on Japanese seafood underscored how geopolitics are directly shaping economic flows. Meanwhile, recordbreaking investments in Artificial Intelligence (AI) sparked both optimism and fears of a speculative bubble, setting a complex stage for the final quarter of 2025.

ECONOMIC UPDATES IMF Warns of Escalating Global Public Debt and Growing Fiscal Risks for Vulnerable Economies On October 15, 2025, during the International Monetary Fund (IMF) Fiscal Monitor press briefing, the organization warned that rising interest rates, geopolitical tensions, and persistent deficits have been pushing global debt into historic highs.37 The organization noted that global public debt is on track to surpass 100% of global GDP by the end of this decade, with downsides risks inducing it to accumulate even

faster, suggesting that global debt could even go up to 124% under a 5% risk scenario.38 Furthermore, IMF mentioned that emerging and low-income countries are left more vulnerable to sudden financial shocks and face relatively higher fiscal risk due to limited funding access and weak fiscal governance despite having low debt ratios.39 In contrast, their high-income counterparts are more equipped to manage high levels of debt as they are backed by more robust fiscal frameworks and systems.40 In this situation, nations have been urged to protect themselves

FACTSHEET

Global GDP Growth in 2026 (expected)32

3.1% Global Inflation in 2026 (expected)33

3.7%

World Population34

8.25 billion

Food Price Index35

126.4 (October 2025)

Global Multidimensional Poverty Index36

18%

against impending economic risks by preparing in advance, expanding domestic revenue, and enhancing fiscal buffers as higher borrowing costs strain budgets.41 Global Inflation Moderates with Mixed Revisions Across Economies In the October 2025 edition of the World Economic Outlook, IMF projected that global headline inflation is expected to drop to 4.2% and 3.7% in 2025 and 2026 respectively, which is in line with previous projections.42 However, inflation forecasts were revised

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upwards at the country level for many economies such as USA, UK, Brazil, and Mexico due to tariffs being passed on to consumers, regulated price changes, persistent price pressures, and credibility issues, respectively.

On the contrary, for much of emerging Asia, including China, India, and Thailand, inflation was revised downwards after food and energy prices were lower than anticipated.43 Amidst this scenario, IMF Directors also stressed the significance of maintaining the independence of central banks for anchoring inflation expectations and ensuring price stability overall.44 Growth Stuck Globally Amid Rising Trade Tensions As per the World Economic Outlook published in October 2025 by the IMF, global growth is forecasted to slow down gradually from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, all of which are below the pre-pandemic average of 3.7%.45 Compared to the July 2025 report, the overall outlook changed slightly with figures weaker than the October 2024 predictions, owing to global trade tensions and key policy shifts in early 2025. While the growth of emerging and developing economies is predicted to moderate a little to 4.2% in 2025 and 4% in 2026, advanced economies are expected to grow by 1.6% in both the years.46 The report further mentioned that, overall, heightened protectionism, fragmentation, and dim medium-term growth requires policymakers to prioritize fiscal sustainability and

institutional independence restore confidence.47

to

Global Food Prices Retreat on Ample Supplies In October 2025, global food prices marked the second consecutive monthly decline as the Food and Agriculture Organization (FAO) Food Price Index (FPPI) went down by 1.6% and averaged at 126.5 points compared to 128.5 in September.48 This was driven largely by ample global supplies with sugar being the commodity leading the decline, falling 5.3% to its lowest since December 2020 amidst strong output in Brazil, expected gains in Thailand and India, and cheaper oil prices.49 Similarly, dairy prices plummeted by 3.4% and meat prices eased 2% while vegetable oil prices rose by 0.9% (the highest since July 2022).50

KEY HIGHLIGHTS OF INTERNATIONAL REPORTS European Commission Foresees Modest Growth ‘The European Commission's Autumn 2025 Economic Forecast’ released on November 17, 2025 projects moderate economic growth in the European Union (EU) despite global tensions. Real GDP is predicted to increase by 1.4% in the EU in the years 2025 and 2026, reaching 1.5% in 2027.51 The euro area is anticipated to mirror this pattern while inflation in the region is expected to continue to fall to 2.1% in 2025.52 The paper reports that, despite growth being driven by resilient domestic demand, a strong

labor market, and enhancing purchasing power, the outlook of the region is still tainted by recurring trade tensions and uncertainty. As a result, the EU’s government deficit is expected to shoot to 3.4% of GDP by 2027 with the debt ratio moving up to 85%.53 OECD Urges Innovation Reform to Navigate Geopolitical Shifts In October 2025, a report published by the Organization for Economic Co-operation and Development (OECD), titled ‘OECD Science, Technology and Innovation Outlook 2025,’ argued that fundamental reforms in science and innovation systems are essential to navigate geopolitical tensions and technological change. As the annual government research and development (R&D) allocation dropped by 1.9% in 2024 in the OECD area, the report urged nations to boost efficiency by intentionally leveraging policy synergies, balancing direct and indirect R&D support, and prioritizing diffusion of innovation beyond leading clusters.54 Adopting evidence-based policymaking with a shift towards an industrial ecosystem was also recommended to drive this transformation.55 UNDP Report Exposes Critical Link Between Climate Hazards and Poverty The 2025 Global Multidimensional Poverty Index (MPI) report titled ‘Overlapping Hardships: Poverty and Climate Hazards’ was released by the United Nations Development

NEFPORT ISSUE 63 – JANUARY 2026

Programme (UNDP) and the Oxford Poverty and Human Initiative (OPHI) at the University of Oxford on October 17, 2025.

This report, published before the COP30 summit in Brazil, revealed a critical connection between climate crisis and global poverty. According to the report, 1.1 billion people live in acute multidimensional poverty and 887 million of these individuals are exposed to at least one climate hazard.56 The paper emphasized that countries that have been forecasted to face the highest temperatures are already nations ridden with poverty.

In this situation, the findings overall highlight the significance of integrated policies that combinedly address poverty and climate vulnerability.57 AI Threatens Core Business Models in Banking McKinsey’s ‘Global Banking Annual Review 2025’, published on October 23 highlighted a significant shift in consumer banking and a new reality where Artificial Intelligence (AI) is reshaping expectations and loyalty has collapsed. According to the report, the banking sector achieved record revenues of USD 5.5 trillion and net income of USD 1.2 trillion in the year 2024 however, a 70% valuation gap persisted due to fading favorable conditions in banking.58 The report stated that while AI could cut down industry costs by 15 to 20%, as AI agents redirect customer deposits, it could erode profits by USD 170 billion.

The winning strategy now, as the review emphasized, is precision which includes using AI to deliver hype-personalized, mobile-first

experiences to capture value in today’s new landscape.59

INTERNATIONAL TRADE UPDATES IMF Urges Asia to Reduce Trade Barriers Amid US Tariffs The International Monetary Fund (IMF) published Regional Economic Outlook for AsiaPacific Region in October 2025.

In the outlook, the region showed stronger-than-expected GDP growth in the first half of 2025.

However, it predicted that economic growth is likely to be moderate in the second half of the year.60 It further projected regional economic growth rate to be 4.5% in 2025 and 4.1% in 2026, which is notably lower than 4.6% in 2024.61 The report noted that the American protectionist trade policy is likely to lower Asian exports to the USA which will reduce regional economic growth rate. IMF further suggested countries in Asia-Pacific region to reduce the trade barriers for higher levels of intraregional trade which could boost their productivity. It would also make the regional economy more resilient to future shocks.

Trump Meets Xi for the First Time in Six Years On October 30, 2025, the American President Donald Trump and Chinese President Xi Jinping met face-to-face for the first time in six years in Busan, South Korea.62 Even though they met for around 100 minutes, there were not any formal trade agreements.63 However, there was some progress on US-China trade relations. China agreed to buy American soybean and remove

its export control measures on rare earth materials. Similarly, the US lowered the tariff rate on Chinese goods from 20% to 10%, which was imposed in response to curb the flow of Chinese fentanyl, a highly addictive and dangerous drug, into the US.64 China Stops Japanese Seafood Imports Again In 2023, China banned the import of Japanese seafood when Japan released radioactive water from the Fukushima Nuclear power plant into the Pacific Ocean.65 China had recently lifted the ban in early November 2025.66 However, China again banned the import of Japanese seafood, following comments made by the Japanese Prime Minister Sanae Takaichi in the Parliament about the Japanese military being willing to interfere if China attacks Taiwan.67 China and ASEAN Sign Upgraded Trade Agreement The Association of Southeast Asian Nations (ASEAN), a regional trade bloc of 12 countries, and China are each other's biggest trade partners.68 On October 28, 2025, ASEAN and China upgraded their existing free trade agreement by reducing more trade barriers.69 The upgrade expanded cooperation into nine sectors: digital economy, green economy, supply chain connectivity, standards and technical regulations with conformity assessment procedures, sanitary and phytosanitary measures, customs procedures and trade facilitation, competition and consumer protection, small and medium-sized enterprises

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(SMEs), and economic technical cooperation.70

and

disproportionate benefits high-emission sectors.74

for

KEY GLOBAL DEVELOPMENTS

G20 Summit Conducted in South Africa

Agricultural Lobbyists Swamp COP30

The Group of Twenty (G20) met in South Africa on November 22 and 23, 2025, following the G20 Social Summit held from November 18 to 20, which provided civil society an opportunity to influence the decision-making process.75 The G20, comprising 19 countries, the European Union, and the African Union, represents 85% of global GDP, 75% of global trade, and two-thirds of the world’s population.76 Leaders discussed economic development, climate change, global health, and Artificial Intelligence amid rising geopolitical tensions and global economic uncertainty.77 The summit highlighted the challenge of coordinating policies across diverse economies while balancing economic growth with sustainability and technological innovation.

The 30th United Nations Conference of the Parties (COP30) was held in Belem, Brazil from November 11 to 21, 2025, bringing together governmental, civil society, and private sector actors to discuss climate change mitigation.71 Among the participants, more than 300 agricultural lobbyists sought to shape outcomes, reflecting the sector’s significant role in climate discussions.72 Agriculture accounts for approximately onequarter of global greenhouse gas emissions, yet lobbyists pushed for substantial climate finance and subsidies, highlighting a growing tension between emissions responsibility and access to funding.73 Their engagement underscores how well-organized industry groups can influence national positions at international negotiations, raising questions about the allocation of climate resources and the effectiveness of existing safeguards to prevent

AI Investment Boom Raises Bubble Concern Global technology firms invested approximately USD 1 trillion (NPR 141.3 trillion) in Artificial Intelligence (AI) infrastructure

and research in 2025, signaling a rapid expansion of the sector.78 The Stargate Project, a joint venture of OpenAI, Oracle, and SoftBank, pledged USD 500 billion (NPR 70.7 trillion) to build AI data centers in the US, while Meta invested USD 14.3 billion (NPR 2.02 trillion) in Scale AI.79 Amazon and OpenAI signed a USD 38 billion (NPR 5.37 trillion) partnership, and Microsoft committed USD 30 billion (NPR 4.24 trillion) and USD 10 billion (NPR 1.41 trillion) for AI infrastructure in the UK and Portugal, respectively. 80 On October 29, NVIDIA, a key supplier of AI chips, became the first US company to reach a market valuation of USD 5 trillion (NPR 706.7 trillion) and announced plans to invest USD 100 billion (NPR 14.1 trillion) in OpenAI.81 The International Monetary Fund warned that the surge in AI investment could form a bubble, drawing parallels with the dot-com crash of the early 2000s, while Alphabet CEO Sundar Pichai cautioned that no company would be immune if the bubble bursts.82 The scale and speed of these investments highlight both the transformative potential of AI and the financial risks associated with overheated markets.

Outlook The fourth quarter of 2025 followed a period of heightened caution, shaped by interconnected fiscal, technological, and geopolitical risks. The International Monetary Fund’s warning on debt sustainability, particularly for vulnerable economies, underscored a global shift toward fiscal consolidation and the need to build economic buffers. At the same time, the trillion-dollar surge in artificial intelligence investment accelerated innovation but raised concerns over a potential dot-com-style bubble, as noted by the IMF and industry leaders. Ongoing geopolitical friction continued to fragment trade, threatening global supply chains. The link between climate hazards and poverty, highlighted at COP30 and in the UNDP report, emphasized the need for integrated policy responses. Policymakers therefore faced the challenge of balancing growth and innovation with fiscal resilience amid technological and environmental disruptions.

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Macroeconomic Overview

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DOCKING NEPAL’S ECONOMIC ANALYSIS

Macroeconomic Overview Nepal’s macroeconomic performance in the first quarter of FY 2025/26 AD (2082/83 BS) showed a mix of remittancefueled stability counterbalanced by weak investment and fiscal pressures. GDP at current prices reached NPR 6.1 trillion (USD 43.21 billion), while inflation remained low at 1.47%, driven by falling food prices and moderate increases in non-food and services. Remittance inflows remained exceptionally strong at NPR 553.31 billion (USD 3.91 billion), helping lift gross foreign exchange reserves to NPR 2,979.81 billion (USD 21.08 billion) and supporting a positive current account balance of NPR 237.59 billion (USD 1.68 billion) and a surplus of NPR 264.03 billion (USD 1.87 billion) in the balance of payments. However, the Gen Z protest in September introduced significant economic challenges and losses. These disruptions were reflected in several key indicators, including weaker revenue collection and subdued foreign direct investment at only NPR 1.18 billion (USD 8.35 million). Meanwhile, government expenditure reached NPR 364.59 billion (USD 2.58 billion) and public debt remained high, with NPR 1.27 trillion (USD 8.98 billion) in domestic debt and NPR 1.44 trillion (USD 10.19 billion) in external debt. Overall, these figures pointed to a stable yet strained economy, with political unrest deepening fiscal and investment challenges.

Gross Domestic Product (GDP) According to the Nepal Rastra Bank (NRB), Nepal's Gross Domestic Product (GDP) at current prices was valued at NPR 6.107 trillion (USD 43.207 billion) in FY 2024/25 AD (2081/82 BS), based on data from the annual series. This marks an increase from NPR 5.71 trillion (USD

40.4 billion) in the previous FY 2023/24 AD (2080/81 BS).84 However, due to recent unrest and heightened political and economic uncertainty, the World Bank forecasted a slowdown in Nepal’s real GDP growth to 2.1% in the second half of the current fiscal year, with a potential range of 1.5 to 2.6%.85

Factsheet83 Particulars

Amount/ Percentage

GDP at current prices

NPR 6.1 trillion (USD 43.16 billion)

Year-on-year CPI

1.47%

Food and beverage CPI

-2.54%

Non-food and service CPI

3.80%

Net Foreign Direct Investment

NPR 1.18 billion (USD 8.35 million)

Remittance inflows

NPR 553.31 billion (USD 3.91 billion)

Gross foreign exchange reserves

NPR 2979.81 billion (USD 21.08 billion)

Total Domestic Debt

NPR 1.27 trillion (USD 8.98 billion)

Total External Debt

NPR 1.44 trillion (USD 10.19 billion)

Government expenditure

NPR 364.59 billion (USD 2.58 billion)

Government revenue

NPR 249.05 billion (USD 1.76 billion) NPR 72.78 billion (USD 514.93 million) NPR 468.08 billion (USD 3.31 billion)

Total merchandise exports Total merchandise imports Total trade balance

NPR - 395.30 billion (USD – 2.79 billion)

Current Account

NPR 237.59 billion (USD 1.68 billion)

Balance of Payments

NPR 264.03 billion (USD 1.87 billion)

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Figure 1. GDP in current prices over the last five years (in NPR trillion) Source: Current Macroeconomic and Financial Situation of Nepal (based on annual data, FY 2024/25 AD (2081/82 BS)86

Inflation Nepal’s year-on-year consumer price inflation for the first quarter of FY 2025/26 AD (2082/83 BS) was 1.47%. This represented a sharp decrease from the 4.82% reported during the same period last year. The annual average inflation for the first three months of FY 2025/26 AD (2082/83 BS) also declined to 1.67%, compared to last year’s 4.26%.87 This indicated a significant easing of inflationary pressures early in the fiscal year. The overall decline was mainly driven by a 2.54% fall in food and beverage prices, particularly in vegetables (-15.63%), spices (-7.82%), and pulses and legumes (-4.41%).

However, several items recorded higher inflation, such as ghee and oil (+7.75%), non-alcoholic drinks (+3.71%), meat and fish (+3.15%), and milk products and eggs (+2.47%).88 In contrast, food

and beverage inflation had been 7.2 % during the same period last year. In the Non-Food and Services, inflation reached 3.80%, slightly higher than 3.49 % a year earlier.89 Most sub-categories experienced increases, including miscellaneous goods and services (+15.51%), education (+7.67%), clothes and footwear (+6.29%), tobacco products (+4.84%), and furnishings and household equipment (+4.55%).

Only insurance and financial services recorded a small decline (–0.23%).90 Regionally, inflation stood at 1.43% in Kathmandu Valley, 1.29% in the Terai, 1.5% in the Hill region, and 2.33% in the Mountain region.91 Nationally, the inflation gap with India widened to 1.22%, as Nepal's inflation rate of 1.47% surpassed India's 0.25%.92 Looking ahead, the World Bank forecasted that inflation

will remain at or below the central bank's 5% target over the medium term.93 This would be primarily driven by easing global commodity prices and moderating inflation in India, whose effects are transmitted through the currency peg.

However, these gains could be partially offset by a potential decline in domestic paddy output, which may keep food inflation elevated in the second half of FY 2025/26 AD (2082/83 BS).94

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Table 2. Consumer Price Index in the First Quarter over Three Consecutive Periods (in percentage) Source: Current Macroeconomic and Financial Situation of Nepal (based on three-month data, FY 2025/26 AD)95

Headings

FY 2023/24 Sep/Oct

Consumer Price Inflation

7.50

Food and Beverage

8.48

Non-food and service

6.85

GOVERNMENT FIGURES Government Reserves Nepal’s gross foreign exchange reserves reached a record high of NPR 2,979.81 billion (USD 29.08 billion) by mid-October of FY 2025/26 AD (2082/83 BS).

This marked an 11.3% increase from NPR 2,677.68 billion (USD 18.94 billion) in mid-July and provided a strong external buffer, sufficient to cover 19.9 months of merchandise imports and 16.4 months of merchandise and service imports.97 Reserves

held by the Nepal Rastra Bank (NRB) reached NPR 2,667.7 billion (USD 18.87 billion). This figure reflected a 10.5% increase from the previous quarter. Meanwhile, reserves held by banks and financial institutions (BFIs) increased by 18.7% to NPR 312.1 billion (USD 2.21 billion).98 Both indicators showed improved foreign currency reserves accessible to the economy.

FY 2024/25 Sep/Oct

FY 2025/26 Sep/Oct

4.82

1.47

7.20

-2.54

3.49

3.80

at 48.8%, up from 43.8% in midJuly.99 The reserves-to-imports ratio increased to 136.6% from 128.1%, and the reserves-to-M2 ratio rose to 36.8 % from 34.1%.100 These improvements suggested improved external sector resilience, supported by higher remittance inflows.

Key reserve ratios also strengthened. By mid-October, the reserves-to-GDP ratio stood

Figure 2. Gross Foreign Exchange Reserves in Mid-October of the Last Five Consecutive Years (in NPR trillion) Source: Current Macroeconomic and Financial Situation of Nepal (ending mid-October 2025)96

Government Debt According to the Public Debt Management

Office,

Nepal’s

total public debt reached NPR 2,724.65 billion (USD 19.28 billion)

in the first quarter of FY 2025/26 AD (2082/83 BS). Of this total, external debt accounted for 53.09% at NPR 1,446.58 billion (USD 10.23 billion), and domestic debt for 46.91% at NPR 1,278.07

billion (USD 9.04 billion).101 Likewise, data from NRB showed outstanding domestic debt at NPR 1,272.91 billion (USD 9.006 billion) in mid-October 2025, up from NPR 1,232.28 billion

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(USD 8.72 billion) a year prior.102 Total public debt now stands at 44.61% of GDP.103 Although this figure remains below the 50% debt-to-GDP risk threshold, the rising trend signals growing fiscal stress amid limited revenue mobilization.104 The domestic and external debt represent 20.93% and 23.69% of GDP.105 However, despite the rise in outstanding external debt, the disbursement of new foreign loans during the current fiscal year has been

sluggish. By the end of the first quarter, only NPR 100.84 billion (USD 713.45 million) in loans had been mobilized. This figure is significantly below the annual target of NPR 595.66 billion (USD 4.21 billion), representing only 16.93 % of the total goal.

Additionally, domestic borrowing reached 24.86 % of its target, whereas external borrowing achieved only 4.64%, reflecting significant delays in foreign loan disbursement.106

Particulars

Debt servicing also became a growing concern. For FY 2025/26 AD (2082/83 BS), the government allocated NPR 411.01 billion (USD 2.91 billion) for debt repayment.

However, NPR 109.89 billion (USD 777.48 million), or 26.74% of the annual allocation, had already been spent during the first quarter. This amounts to 1.8% of GDP, highlighting the rising fiscal burden of debt servicing. 107

Domestic Debt (in NPR billion)

Mid-October 2024

Table 2. Outstanding Domestic Debt as of mid-July in the last three years (in NPR billion) Source: Current Macroeconomic and Financial Situation of Nepal (based on three-month data, mid-October FY 2025/26 AD)108

Mid-October 2025

Total Domestic Debt

1,232.28

1,272.91

a. Nepal Rastra Bank

20.39

11.79

b. Commercial Banks

1,058.29

1,025.47

c. Development Banks

99.12

91.71

d. Finance Companies

22.11

17.52

e. Others

32.35

126.41

Government Spending According to the Financial Comptroller General Office (FCGO), Nepal’s total expenditure during the first three months of FY 2025/26 AD (2082/83 BS) reached NPR 364.59 billion (USD 2.58 billion). This represented a 10.8% increase compared to

NPR 329.19 billion (USD 2.33 billion) in the same period of FY 2024/25 AD (2081/82 BS).109 Of the total expenditure, recurrent spending amounted to NPR 256.81 billion (USD 1.82 billion).

Capital expenditure was NPR 19.18 billion (USD 135.7 million), and financial expenditure reached NPR 88.60 billion (USD 626.86

million).110 Recurrent (+11.7%) and financial expenditures (+26.6%) both increased from last year.

However, capital expenditure fell by 34.7%, indicating that development and infrastructure spending remained slow.111

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FY 2023/24 AD (2080/81 BS)

FY 2024/25 AD (2081/82 BS)

FY 2025/26 AD (2082/83 BS)

Recurrent expenditure

213.75

229.85

256.81

Capital expenditure

17.83

29.37

19.18

Financial management

69.97

49.35

88.60

Total Expenditure

280.17

329.2

364.59

Particulars

Table 4. Government Expenditure based on Three Months’ Data (in NPR billion) Source: Current Macroeconomic and Financial Situation of Nepal (based on three-month data)112

In terms of revenue mobilization, the total revenue increased marginally (+0.3%), reaching NPR 249.05 billion (USD 1.76 billion) in the first quarter of FY 2025/26 AD (2082/83 BS).113 This was a sharp decline in growth

compared to the 13.3% increase recorded during the same period in FY 2024/25 AD (2082/83 BS).

Meanwhile, tax revenue increased from NPR 219.68 billion (USD 1.55 billion) to NPR 234.33 billion (USD 1.66 billion) while non-tax

revenue dropped significantly, falling by 48.5%, from NPR 28.58 billion (USD 202.2 million) to NPR 14.72 billion (USD 104.14 million).114

DoI records, Nepal received FDI commitments worth NPR 35.13 billion (USD 248.55 million) in the first three months of the current fiscal year, a substantial increase from NPR 16.46 billion (USD 116.45 million) during the same period last year.117 However, according to the NRB, Nepal received only NPR 1.18 billion (USD 8.35 million)

in actual FDI under the balance of payments heading in the first three months of FY 2025/26 AD (2082/83 BS), a figure far below the amount pledged and a decrease from the NPR 2.13 billion (USD 15.07 million) received in the same period of the previous year.118 Moreover, while the FDI commitments surged in the first

Figure 3. Government Revenue based on Three Months’ Data (in NPR billion) Source: Current Macroeconomic and Financial Situation of Nepal (based on three-month data)115

FINANCE STATUS Investments Data from the Department of Industry (DoI) and Nepal Rastra Bank (NRB) revealed a significant mismatch between committed and realized Foreign Direct Investment (FDI).116 According to

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three months, the pace slowed notably after the September protests, reflecting lingering investor caution. The detailed breakdown from the DoI showed commitments of NPR 24.104 billion (USD 170.54 million) for 127 projects in Shrawan 2082 BS (Mid-July to Mid-August 2025 AD), NPR 8.987 billion (USD 63.58 million) for 109 projects in Bhadra 2082 BS (Mid-August to Mid-

September 2025 AD), and NPR 2.045 billion (USD 14.47 million) for 75 projects in Ashoj 2082 BS (Mid-September to Mid-October 2025 AD).119

FOREIGN ASSISTANCE Aid Disbursements from Donor Agencies

several agencies, notably the Asian Development Bank (ADB), the International Development Association (IDA), and the United States Agency for International Development (USAID). The aid implemented 274 projects in 30 different sectors.120

During the review period, Nepal received aid disbursements from

Figure 4. Status of Aid Commitments, Disbursements, and Expenditure from September to November, 2025 Source: "Development Finance Information Management System for Nepal," Ministry of Finance121

BILATERAL AND MULTILATERAL AID Project / Program-Specific Aid Japan to Provide YEN 2.8 Billion for Sindhuli Road Rehabilitation On October 30, 2025, the Government of Japan approved a grant of YEN 2.8 billion (USD 19.04 million / NPR 2.69 billion) for the reconstruction of Sindhuli Road, which connects the mideastern Terai to Kathmandu.122 Originally built with Japanese assistance between 1995 and 2015, the 160 km road suffered damage to 10 km of its length from floods in September 2024.123 The rehabilitation is expected to restore mobility

for local communities and support regional economic activity. The grant also reflects the long-standing development partnership and diplomatic ties between Nepal and Japan.

MCC Nepal Compact Receives Additional USD 50 (NPR 7.07 Billion) million The Government of Nepal and the US government’s Millennium Challenge Corporation (MCC) announced an additional USD 50 million (NPR 7.07 billion) funding for the MCC Nepal Compact.124 After the additional funding, the total value of the compact reached USD 747 million (NPR 105.58 billion) in which the Nepal government contributed USD 197

million (NPR 27.84 billion) and the US contributed USD 550 million (NPR 77.74 billion).125 On January 2, 2025, MCC had approved USD 50 million (NPR 7.067 billion) for the compact, but it was stalled by Donald Trump.126 The new funding will be used towards completion of electricity transmission and road maintenance projects, which includes the construction of around 300 km of high voltage transmission line, three substations, and regular maintenance of approximately 90 km strategic road network of Nepal.127 These projects aim to strengthen Nepal’s power system and increase regional power trade.

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Grants and Concessional Loans Germany Pledges EUR 41 Million (NPR 6.74 Billion) in Grant to Nepal On October 8, 2025, the governments of Germany and Nepal signed a financial and technical cooperation agreement worth EUR 41 million (NPR 6.74 billion) to support projects in energy, sustainable economic development, and health.128 The grant followed government-togovernment negotiations held in Berlin on September 4–5, 2024.129 Key initiatives under the agreement include the Power Distribution Strengthening Program (PoDiSP), Strengthening of Quality Infrastructure for the Health System, and Green Resilient Agricultural-centred Private Sector Economic (GRAPE) Development.130 Implementation will be led by German agencies including Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Kreditanstalt für Wiederaufbau (KfW), and PhysikalischTechnische Bundesanstalt (PTB).

The grant aims to enhance sectoral capacities while reinforcing Nepal-Germany development cooperation.

Interim Government Plans USD 100 Million (NPR 14.13 Billion) Concessional Loan from ADB On October 9, 2025, the Cabinet of the interim government approved a USD 100 million (NPR 14.13 billion) concessional loan from the Asian Development Bank (ADB), Nepal’s largest donor.131 As

of April 2025, ADB had provided USD 9.3 billion (NPR 1.31 trillion) to Nepal through 529 public sector loans, grants, and technical assistance.132 The new loan is intended to supplement the government budget and finance the Public Financial Management Reform and Service Delivery Transfer Program.133 A negotiation team, led by the joint secretary of the Ministry of Finance, was tasked with securing the loan, reflecting continued reliance on multilateral financing to support fiscal and development priorities.134

REMITTANCE AND MIGRATION Remittance Inflows Surge by 35.4% in the First Quarter The first quarter of FY 2025/26 AD (2082/83 BS) recorded a sharp 35.4% rise in Nepal’s remittance inflows, reaching NPR 553.31 billion (USD 3.91 billion).

A major portion of this increase came from the month of Ashoj 2082 BS (mid-September to mid-October 2025 AD), which alone contributed NPR 201.22 billion (USD 1.42 billion).

In contrast, remittances had increased by only 11.9% during the same quarter last fiscal year, with NPR 144.17 billion (USD 1.02 billion) received in the midSeptember to mid-October period.135 Likewise, there was also a modest rise in the number of Nepali workers going abroad, both institutional and individual.

First-time foreign employment approvals reached 123,459, while approvals for renewed entry

stood at 77,257.136 In the previous year, these figures were 110,654 and 59,939, respectively.137 Top Ten Labor Destinations In the first three months of FY 2025/26 AD (2082/83 BS), a total of 123,459 Nepali migrant workers left for foreign employment, reflecting a modest increase from 110,654 in the same period of FY 2024/25 AD (2081/82 BS).

The Gulf region remained the main destination, with 47,279 workers going to the United Arab Emirates (UAE), 14,907 to Saudi Arabia, and 11,715 to Qatar.

However, the share of workers heading to the Gulf declined overall, with Saudi Arabia, Qatar, and Kuwait recording falls of 26.1%, 6.6%, and 8.3%, respectively.

Other destinations, such as the Maldives and South Korea, also experienced notable decreases of 26.1% and 12.3%, respectively.

In contrast, Japan and Cyprus experienced significant growth of 30.7% and 19.6%, similar to the UAE’s 19.4% increase.138 Overall, the data indicate emerging alternatives and diversification of destination preferences for Nepali migrant workers.

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Table 5. Three Months’ Data for Top 10 Labor Destinations of Nepali Migrant Workers

S.N.

Country

First Three Months’ Data

2023/24 AD (2080/81 BS)

2024/25 AD (2081/82 BS)

Percent Change

2025/26 AD (2082/83 BS)

2024/25 AD (2081/82 BS)

2025/26 AD (2082/83 BS)

1

UAE

26,661

39,603

47,279

48.5

19.4

2

Saudi Arabia

20,538

20,185

14,907

-1.7

-26.1

3

Qatar

10,929

12,549

11,715

14.8

-6.6

4

Malaysia

21,139

85

9,474

-99.6

-

5

Kuwait

9,414

8,765

8,041

-6.9

-8.3

6

Romania

1,700

5,845

5,815

243.8

-0.5

7

Japan

2,358

3,696

4,830

56.7

30.7

8

South Korea

3,746

2,843

2,493

-24.1

-12.3

9

Cyprus

1,296

1,607

1,922

24.0

19.6

10

Maldives

1,561

2,090

1,544

33.9

-26.1

11

Others

14,055

13,386

15,439

-4.8

15.3

Total

113,397

110,654

123,459

-2.4

11.6

Source: Current Macroeconomic and Financial Situation of Nepal FY 2025/26 AD (Three Months Data)139

TRADE STATUS Foreign Trade Scenario During the first three months of FY 2025/26 AD (2082/83 BS), Nepal's total merchandise trade increased to NPR 540.87 billion (USD 3.82 billion) from NPR 429.13 billion (USD 3.03 billion) in the same period of FY 2024/25

AD (2081/82 BS). The rise in trade resulted from an increase in both imports and exports.140 Imports continued to substantially overtake exports, with imports amounting to NPR 468.08 billion (USD 3.31 billion), while exports amounted to only NPR 72.78 billion (USD 514.93 million).141 In terms of trading partners, India

remained Nepal's largest trading partner, making up 58.80% of total trade, followed by China at 19.43% and other countries at 21.78%.142

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Figure 5. Total Annual Foreign Trade in the First Three Months for the Past Three FYs (in NPR Billion) Source: Current Macroeconomic and Financial Situation, First Three months data for FY 2025/26 AD (2082/83 BS)143

Top Imports and Exports Petroleum products remained the top import item in the first three years of FY 2025/26 AD (2082/83 BS), making up 12.6% of total imports. Other products with the most import volume were transportation equipment (6.5%), crude soybean oil (6.5%),

Figure 6. Total Imports, Exports, and Trade Balance during the First Three Months of the Last Five FYs Source: Current Macroeconomic and Financial Situation, First Three months data for FY 2025/26 AD (2082/83 BS)147

chemical fertilizer (4.6%), and other machinery and parts (4.2%).144 On the other hand, the top exports from Nepal were soybean oil (42.2%), polyester yarn & thread (4.8%), woolen carpet (3.5%), jute goods (3.5%), juice (2.8%), and palm oil (2.6%).145 The largest growth

in imports was in gold (479.3%) and crude soybean oil (462.5%), while in terms of exports, palm oil (407.1%), herbs (73.7%), and shoes and sandals (64.8%) saw the maximum growth.146

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Balance of Trade The increasing trend of imports meant that Nepal continued to witness a substantial trade deficit every month. In the first three months of FY 2025/26 AD (2082/83 BS), Nepal had a trade deficit of NPR 395.30 billion (USD 2.79 billion). This is an increase of about 12.2% as compared to NPR 352.40 billion (USD 2.49 billion) in the same period of the previous year.

The export-import ratio showed the export revenue can afford only 15.5% of the import expenditure

in the first three months of FY 2025/26 AD (2082/83 BS).148 The share of the trade balance with both India decreased to 50.5% from 61.3% while, with China, it increased to 26.5% from 22.2%, compared to the first three months of last FY 2024/25 AD (2081/82 BS).149 Meanwhile, for other countries, the trade deficit increased from 16.5% last year to 23% this year.150

standard gold (24K) was NPR 243,000 (USD 1,719) for 11 grams as of 20 November 2025.151 With fluctuations during the festive season, the price of gold reached all time high NPR 258,000 (USD 1,825) for 11 grams on October 17, 2025.152 The demand for gold surged, as it became a safe-haven asset for investment compared to real estate and stock market amid country’s political and economic uncertainty.153

Gold/Silver Updates As per the Federation of Nepal Gold and Silver Dealers’ Association, the price of

50 42.69

45

43.89

Figure 7. Gold Imports in the First Three Months of the Last Five FYs

Amount (in NPR Billion)

40 35 27.49

30

25.93

25

19.93

20 15 10 5 0

Source: “Federation of Nepal Gold and Silver Dealers' Association”, https://www. fenegosida.org/154

2020/21

Exchange Rate The Nepali currency depreciated by 2.3% against the US dollar from mid-July to mid-October 2025, compared to a 0.6% drop during the same period last year.155 The buying rate for the US dollar rose to NPR 140.22 in mid-October

2021/22

2022/23

2023/24

2024/25

Fiscal Year

2025.156 Moreover, Nepal Rastra Bank's foreign currency reserves increased by 11.3% to NPR 2,979.81 billion (USD 21.08 billion) in midOctober 2025, up from NPR 2,677.68 billion (USD 18.94 billion) in mid-July 2025.157 Similarly, the foreign currency reserves

held by banking and financial institutions rose by 18.7% to NPR 312.1 billion (USD 2.208 billion) in mid-October 2025, up from NPR 263.04 billion (USD 1.86 billion) in mid-July 2025.158

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Figure 8. Average Selling Rate of USD in NPR over the Last Five Fiscal Years Source: Current Macroeconomic and Financial Situation, First Three months data for FY 2025/26 AD (2082/83 BS)159

Outlook Nepal’s economic outlook remains cautiously stable but fragile, with several indicators reflecting both resilience and emerging pressures. Strong remittance inflows and robust foreign exchange reserves will continue to anchor external stability, while low inflation provides some space for consumption to recover. However, weak revenue mobilization, subdued foreign direct investment, and the continued dependence on borrowing point to persistent fiscal vulnerabilities. According to World Bank projections, overall growth is expected to slow in FY 2026 AD, driven largely by a sharp decline in services sector activity as tourism weakens and insurance services absorb losses from recent unrest. Industrial growth is also expected to moderate, with non-hydropower investment likely constrained by weakened investor confidence. In summary, the economic path forward is uncertain. While risks persist from political unrest, vulnerability to disasters, and rising non-performing loans (NPLs), a successful political transition and sustained macroeconomic management could strengthen investor sentiment and support a stronger recovery.

3

Sectoral Review

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Agriculture and Livestock From September to November 2025, Nepal’s agriculture and livestock sectors experienced a quarter defined by climate-induced production shocks, rising market volatility, and persistent structural constraints.

Unseasonal October rainfall damaged paddy ready for harvest across the eastern Terai, while vegetables, maize, and potatoes recorded lower early yields and heightened regional variability due to excess moisture, fungal outbreaks, and delayed harvesting windows. Localized supply disruptions pushed wholesale and retail prices upward, exposing vulnerabilities in storage, transport, and weather-risk preparedness. In the livestock sector, the prolonged failure of major dairies, particularly the Dairy Development Corporation (DDC), to clear outstanding milk payments created acute liquidity stress for farmers and disrupted procurement networks in several provinces. Meanwhile, government agencies advanced plans to expand climateresilient seed systems, strengthen paddy procurement mechanisms, modernize veterinary diagnostics, and introduce digital traceability frameworks. Across both sectors, the quarter highlighted the increasing pressures of extreme weather, market uncertainty, and institutional blockages, as well as the need for targeted investments to stabilize production and protect farmer livelihoods.

FACTSHEET Particulars

Amount/ Percentage

Agriculture sector’s contribution to GDP160

24.1%

Growth rate for agriculture161

2.7%

GDP of the agriculture sector162

NPR 1.29 trillion (USD 9.76 billion)

Food and Beverage CPI % Change 2025/2026163

- 2.54%

Year-on-year price increase of ghee and oil164

7.75%

Year-on-year price increase of meat and fish165

3.15%

Year-on-year price increase of milk products and eggs166

2.47%

Year-on-year price increase of sugar and sugar products167

0.12%

Year-on-year price decrease of vegetable168

-15.63%

Year-on-year price decrease of spices169

-7.82%

Year-on-year price decrease of pulses and legumes170 Year-on-year price decrease of cereal grains and their products171

-4.41% -3.29% Crude soybean oil: NPR 30.2 billion

Top 4 agricultural commodities imports (based on six months’ data ending in mid-January 2024)172

Rice/paddy: NPR 7.96 billion Vegetables: NPR 5.01 billion Edible oil: 4.48 billion Soybean Oil: NPR 30.7 billion

Top 4 agricultural commodities exports (based on six months’ data ending in mid-January 2024)173

Jute goods: NPR 2.55 billion Juice: 2.07 billion Palm oil: NPR 1.91 billion

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PRODUCTION UPDATES Unseasonal October Rains Severely Damage Paddy Ready for Harvest In early October, heavy and unseasonal rainfall struck key paddy-producing districts in the eastern Terai just as farmers were preparing to harvest, causing widespread lodging, submerged fields, and delayed collection that increased post-harvest losses.174 Local reports from affected eastern Terai districts, including Morang, Sunsari, Saptari, and Siraha, noted that prolonged inundation and grain shattering reduced both household food reserves and marketable surplus.175 Meanwhile, the Ministry of Agriculture and Livestock Development’s (MoALD) crop monitoring units cautioned that concentrated damage in the eastern Terai could force downward revisions to national procurement and production estimates for the season.176 While some western and mid-hill areas reported more stable harvest conditions, the concentrated timing of the rains in harvest windows amplified quality losses in staple rice destined for domestic consumption.

Vegetable Prices Soar After Heavy Rains Damage Major Crop Belts Intense and unseasonal rainfall disrupted vegetable production across central and eastern producing belts, hitting tomato, cauliflower, and leafy vegetable supplies just before the winter season.177 Traders at Kathmandu’s Kalimati market reported a sharp drop in arrivals, even roughly one-quarter of normal flows

for some days, triggering retail price spikes of around 50-80% for certain perishables.178 Field accounts attributed much of the damage to moisture-related rotting and fungal outbreaks, compounded by transport disruptions that further reduced marketable volumes. The supply shock exposed vulnerabilities in cold-chain and rapid distribution channels, highlighting the role of timely weather advisories in periurban supply coordination.179 Maize Harvest Varies Across Regions as Rainfall and Mechanization Effects Diverge Maize harvest outcomes during the review period were mixed.

Several eastern hill districts recorded lower market-grade yields because intermittent postmaturity rains increased ear rot and reduced kernel quality, while parts of the western hills and selected Tarai pockets reported near-normal or improved yields.180 Local mechanization, such as power tillers, miniharvesters, and mechanical grain dryers, helped some districts increase productivity and speed up harvesting, reducing postharvest exposure to late rains.181 Market reports and monitoring by the International Food Policy Research Institute (IFPRI) showed that national maize prices remained broadly stable in October, although localized supply shortfalls and reliance on imports for feed mills continued to create price and availability variations across markets. The divergence underlined the importance of scaling resilient seed varieties, drying facilities, and targeted mechanization to stabilize maize supplies for both food and feed use.

Mid-Hill Potato Yields Diverge as October Moisture and Mechanization Impact Output Potato harvesting in the midhills showed varied outcomes in the review period. Districts such as Kavre, Nuwakot, and Rasuwa experienced delayed harvests and smaller tuber sizes due to prolonged October moisture and cooler temperatures during bulking, while Dolakha and Sindhupalchowk recorded stronger outputs supported by improved seed quality and mechanization.182 Wholesale data from the Kalimati market showed daily arrivals temporarily falling from around 400 tonnes to 100 tonnes on some days, driving short-term price increases for potatoes and other vegetables.

National value-chain initiatives, particularly the Prime Minister Agriculture Modernization Project (PMAMP), along with recent sector summits, highlighted the need to expand cold-storage infrastructure, strengthen seed multiplication systems, and improve access to mechanized harvesters to reduce postharvest losses and stabilize seasonal prices.

LIVESTOCK UPDATES DDC Fails to Clear LongPending Milk Payments Despite Government Support Dairy farmers across Nepal faced a crisis this quarter as months of unpaid milk payments coincided with Dashain, the country’s main festival, leaving many unable to cover household expenses, fodder, or loan repayments.

Despite government instructions and a USD 4.24 million (NPR 598.5 million) loan last year

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earmarked to clear dues, the Dairy Development Corporation (DDC) failed to pay farmers on time.183 Reports indicated total overdue payments of USD 21.2 to 24.8 million (NPR 2.99 to 3.51 billion), with the DDC alone owing over USD 7.07 million (NPR 999.9 million), while private dairies also had significant arrears.184 Protests and sit-ins at DDC offices on September 1 forced an agreement on staged payments, but delays persisted through late October, coinciding with the milk flush season.185 Officials attributed slow payments to large stockpiles of unsold milk powder and butter that constrained cash flow, while farmers described the continued delays as a betrayal. The episode underscored the need for timely payments and strengthened mechanisms to prevent recurring disruptions in the dairy sector.

DDC Faces Local Distribution Crisis in Biratnagar In November 2025, the Dairy Development Corporation’s (DDC’s) Biratnagar Milk Supply Scheme experienced a severe liquidity and operational crisis.186 Persistent delays in payments led farmers to divert milk to private dairies, weakening the DDC’s local supply chain.187 Several chilling centers under the scheme either reduced operations or closed entirely, disrupting milk collection and raising concerns over the longterm viability of the corporation’s procurement network.188 The situation highlighted systemic challenges in DDC’s financial management and the risks posed to local dairy infrastructure when timely payments are not ensured.

Murrah Buffalo Scheme Fails Farmers in Karnali During this quarter, reports confirmed that the USD 2.41 million (NPR 340.7 million) Murrah buffalo distribution program in Karnali Province largely failed to deliver the expected benefits.189 Designed to boost milk production by providing imported Murrah buffaloes from Haryana, India, the scheme led to financial losses for many farmers, as the animals struggled to adapt to the region’s cold and hilly terrain.190 Several buffaloes died shortly after arrival, while others failed to conceive or produce promised milk yields, with local breeds proving more reliable under the same conditions.191 As a result, farmers reported selling Murrah buffaloes at low prices to cut losses, while livestock experts noted that the breed requires warm, dry sheds and intensive care, which are difficult to maintain in Karnali. The program also drew criticism for lacking proper feasibility studies, with farmers alleging pressure to buy from specific suppliers and raising suspicions of potential official gains.

GOVERNMENT PLAN UPDATES Government Plans Expanded Procurement and Subsidy Measures for Paddy Farmers The Government of Nepal outlined forward-looking plans to strengthen paddy sector resilience following extensive losses from unseasonal October rainfall. The Ministry of Agriculture and Livestock

Development (MoALD) announced that the coming fiscal cycle will prioritize expanded procurement centers, improved grain-drying infrastructure, and increased minimum support price interventions to reduce post-harvest losses in disasteraffected districts.192 In preparing its 2026 supply strategy, the government signaled that procurement volumes may be adjusted to account for grain quality deterioration caused by moisture damage in the eastern Terai.193 Planned interventions include mobile drying units, emergency logistics hubs, and streamlined compensation mechanisms for smallholders who face delayed harvest recovery.194 National Plan to Scale ClimateResilient Seed Systems Ahead of 2026 Planting The government advanced several strategic plans to expand the use of climateresilient seeds in anticipation of increasingly erratic monsoons.

Nepal’s National Seed Board finalized approvals for new drought-tolerant and shortmaturity rice and maize varieties, forming part of a multi-year agenda to modernize national seed systems.195 MoALD’s forward plan for 2026 included expanded production of breeder and foundation seed, scaling of community seed banks, and distribution of climateresilient varieties in waterstressed districts.196 Provincial trials demonstrated strong performance under moisture stress, showing 12–22% yield advantages compared to

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traditional varieties, supporting government decisions to integrate these seeds into premonsoon input packages.197 The plan also aligns with commitments from the Food and Agriculture Organization (FAO) and the United States Agency for International Development (USAID), which are mobilizing technical and financial assistance for seed-processing upgrades and farmer training.

Government Plans to Modernize Veterinary Diagnostics and Livestock Services The Government of Nepal advanced plans to modernize veterinary services and diagnostic systems to reduce livestock disease vulnerability this quarter. MoALD outlined multi-year strategies to upgrade laboratory capacity, expand provincial veterinary service centers, and enhance training for veterinarians and para-veterinary staff.198 The plan integrates components of the National Livestock Sector Innovation Project (NLSIP), which seeks to raise productivity and improve disease surveillance through farmer field schools and targeted value-chain interventions.199 Future investment priorities include improved cold-chain systems for vaccines, digital record-keeping, and rapid diagnostic technologies to strengthen early detection of zoonotic and transboundary diseases.200 The initiative is expected to improve outbreak response speed and support long-term productivity gains for smallholder producers.201

KEY DEVELOPMENTS Commercial Maize Expansion Gains Momentum Amid Industry Concerns Feed mills raised concerns about declining domestic maize supply due to moisture-related quality reductions in eastern Nepal and increased reliance on informal grain imports.202 In response, MoALD and provincial governments intensified discussions on establishing largescale maize production zones in Lumbini and Madhesh Provinces, targeting 30,000 hectares for hybrid and high-yield varieties.203 The Consultative Group on International Agricultural Research (CGIAR)’s “Scaling Commercial Maize” initiative also began planning investments in irrigation rehabilitation, mechanization, and improved seed access to stabilize feedgrain supply for Nepal’s poultry industry.204 The poultry sector, Nepal’s largest maize consumer, welcomed the initiative, noting that consistent grain supply is essential to maintaining feed affordability and supporting industry growth.205 Agricultural economists warned that implementation success will depend on credit availability, timely input delivery, and climateresilient farming practices.206 Regional Dairy Trade Talks with Bangladesh Gain New Momentum Nepal’s regional dairy diplomacy gained traction this quarter as government officials and industry bodies advanced discussions with Bangladesh to diversify export markets and

stabilize domestic milk demand.

Negotiations focused on enabling Nepal to export processed dairy products, including ghee, butter, and powdered milk, as domestic stocks have increased due to prolonged payment backlogs and reduced procurement by major dairies.207 Bangladesh, which relies heavily on dairy imports to meet urban demand, expressed interest in formalizing import channels pending improvements in Nepal’s sanitary and phytosanitary certification systems. Stakeholders noted that enhanced cross-border dairy cooperation could help reduce Nepal’s growing milk surplus, strengthen market security for farmers, and reduce bilateral trade imbalances. However, both sides acknowledged structural challenges, such as the need for harmonized quality standards, upgraded border testing facilities, and more predictable transit rules under evolving South Asian regional trade frameworks.

Industry groups emphasized that successful implementation of dairy trade agreements could significantly ease financial pressures on Nepal’s dairy cooperatives and improve longterm resilience of the livestock sector.

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Outlook Nepal’s agricultural and livestock performance in the coming months will remain closely tied to climate patterns, recovery from October’s rainfall damage, and the state of market infrastructure.

Unseasonal rains during the last quarter caused paddy and vegetable losses, while maize and potato yields were uneven across regions, highlighting the need for the rollout of climate-resilient seed plans and strengthened post-harvest systems, which will be critical in cushioning future shocks, especially ahead of the 2026 monsoon. Nepal’s dairy sector faces significant risks as many farmers have not received milk payments for over a year, with dues from the Dairy Development Corporation (DDC) and private dairies totaling roughly USD 21.2 to 24.8 million (NPR 2.99 to 3.51 billion). These prolonged delays have disrupted livelihoods, constrained farmers’ ability to maintain livestock, and weakened local milk supply chains, as seen in Biratnagar where farmers began diverting milk to private dairies. Without urgent action to clear overdue milk payments, farmer hardship, supply disruptions, and market instability are likely to persist in the coming quarter.

Overall, the agriculture and livestock sectors will enter the next quarter with heightened sensitivity to weather, price movements, and financial stability within key value chains. Strengthening climate preparedness, improving payment discipline, and enhancing governance across supply chains will be key to stabilizing production and protecting rural livelihoods as Nepal navigates increasingly complex agricultural risks.

Artificial Intelligence in Agriculture and Livestock AI-Enabled Early Warning and Advisory Systems for Agriculture and Livestock During this review period, development partners advanced the use of artificial intelligence (AI) to strengthen climate-risk management across Nepal’s agriculture and livestock sectors. A notable initiative emerged from the TECH4Resilience Challenge, won by Mercy Corps Nepal in mid-November, which is piloting an AI-powered anticipatory action platform known as ‘AI4Ready’ for flood and heatprone municipalities.208 Originally designed for disaster preparedness, the system is now being adapted to support agriculture and livestock decision-making at the household level.209 The initiative centers on the AI4Ready system, a suite of integrated tools developed under the TECH4Resilience program. AI4Ready combines Smart Document Intelligence, the Vulnerability and Exposure Dashboard, the Early Warning Trigger Assistant, and the Community Feedback Monitor to convert complex meteorological and field data into actionable insights for local governments, extension workers, and farmers.210 For producers, this includes localized advisories on heat stress, fodder shortages, vaccination timing, and emergency preparedness when forecast thresholds are exceeded.

The system also auto-generates concise Nepali-language field briefs, helping frontline extension staff deliver timely and targeted support during extreme-weather events. Pilots initiated in early November 2025 in Sudurpaschim Province have demonstrated early promise. Municipalities in Dhangadhi, Tikapur, and surrounding areas reported faster dissemination of heavy-rain and heat-stress advisories, while extension officers noted improved farmer readiness during localized rainfall events.211 Although the pilot remains at an early stage, preliminary field testing indicates strong potential to reduce crop and livestock losses through earlier warnings and structured anticipatory planning.

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Education The review period, from September to November 2025, captured a turbulent yet defining moment for Nepal’s education sector, shaped by political unrest, institutional reforms and emerging visions for internationalization.

The Gen Z movement led to targeted destruction to schools, examination centers, and administrative units, disrupting learning continuity for students and forcing major examination bodies to cancel or redo assessments.

Despite grappling with the physical and administrative fallout, the interim Ministry of Education, Science and Technology initiated a series of policy and structural reforms aimed at depoliticizing institutions, improving research capacity, and strengthening digital learning.

Furthermore, Kathmandu University advanced an ambitious strategy to rebrand Nepal as a regional highereducation hub, signaling an emerging shift towards global engagement and academic competitiveness.

KEY DEVELOPMENTS Educational Buildings and University-Level Answer Sheets Burned Down Amid Nationwide Protests Following the deaths on the first day of Gen Z movement on September 8, 2025, nation-wide protests erupted throughout the country on September 9 with repercussions on educational institutions.217 Ullens School complexes in Khumaltar, Bansbari, and Nala, and Global College of Management in midBaneshwor were set ablaze, leading to significant damage to classrooms, laboratories, libraries, smart boards, vehicles, and student records.218 This led to a loss worth billions and directly

FACTSHEET

Education Indicators

Mean Years of Schooling212

5.1

Net Enrolment rate at Secondary Level213

55.8%

Retention Rate up to Grade 12214

37.2%

Literacy Rate (5 years and above)215

76.2%

Ratio of Gender Equality (based on the secondary net enrolment rate)216

0.9

affected thousands of students and staff for continuing learning activities. 219

Over 73% Students Pass in Grade 12 Supplementary Examination Result

Additionally, the impact of protests extended nationwide with the destruction of over 19,000 answer sheets belonging to Council for Technical Education and Vocational Training (CTEVT) and Tribhuvan University (TU) when the police stations storing these sheets were set on fire.220 CTEVT confirmed that answer sheets from 23 centers affecting 16,883 students were turned to ashes, leading to re-examinations beginning from November 221 20. In response to the unrest and resulting destruction, TU cancelled examinations in multiple districts, setting to announce new schedules. 222

On November 9, 2025, the Nepal Examination Board (NEB) published the results for Grade 12 Supplementary Examinations conducted on September 23 and 24, 2025.223 The supplementary examinations are held each year with the intention of offering an opportunity to students who could not pass the regular Grade 12 exam to improve their grades.

According to the press release

by NEB, 73.41% (76,367) of the 104,026 candidates passed in all subjects.224 This pass rate is 2.8% higher than that of the 2024 Supplementary Examinations when 70.60% of the students giving re-exams passed.225

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Education Minister Pun Scraps Politically Affiliated Teachers Group On November 9, 2025, the newly appointed Minister of Education, Science and Technology of the interim government, Mahabir Pun, decided to not officially recognize politically affiliated organizations of teachers, professors, or employees in schools, colleges and 226 universities. This derecognition required these associations to become independent and apolitical, operating under the legal provisions.227 Furthermore, the move remains crucial for ensuring educational quality and to help institutions function as “zones of peace,” free from This political interference.228 step was seen as an effort to depoliticize the education sector and reinforce integrity within academic institutions. However, teacher associations affiliated with political parties argued that the decision violated their constitutional right to assembly and unionization.229 Major Directives Issued to Strengthen Research, Digital Learning, and Curriculum Quality In the past quarter, Education Minister Mahabir Pun conducted a comprehensive review of agencies under the Ministry of Education, Science and Technology and issued a series of directives to strengthen their effectiveness. After inspecting the National Academy of Science and Technology (NAST), he noted that an excessive share of its budget was devoted to administration rather than research and asked its staff

to submit recommendations on transforming NAST into a high-quality research center.230 Furthermore, he also directed the Centre for Education and Human Resource Development to rationalize teacher positions, merge schools with low student numbers, ensure the nationwide appointment of qualified headmasters, and expand digital learning materials.231 Similarly, the Curriculum Development Centre was directed to prioritize timely curriculum updates, mothertongue based textbooks, and the integration of practical, moral, and constitutional education. 232 Alongside reforms on the agencies, Minister Pun instructed the removal of political interference in higher education through the meritbased selection of the university chancellor.233 He also tasked the Council for Technical Education and Vocational Training (CTEVT) with revising existing curricula to incorporate innovation and submitting a draft framework

by October 17.234 Moreover, he mandated the creation of a unified academic calendar and ordered examination results to be published within three months.235

PLANS AND PROGRAMS Education Minister Announces Reform Initiatives to Address Issues in Nepal’s Education System Minister of Education, Science and Technology Mahabir Pun announced that every community secondary school in Nepal should appoint at least one dedicated computer teacher, as part of a broader reform push in school level education.236

During a briefing at his ministry on September 23, 2025, the minister framed this requirement as essential to ensure that students in community schools are not deprived of computer education.237 This policy represents a significant step toward educational modernization in Nepal, particularly benefiting rural and underserved communities where technology education has traditionally been limited.238 The second initiative states that universities should release the results of examinations within a maximum of three months, which also applies to the National Examination Board.239 To enforce this, Minister Pun stated that government grants will be withheld from any university that fails to meet this deadline.240 Finally, Minister Pun has also directed concerned officials to make the Tribhuvan University (TU), Kirtipur, attractive by clearing large bushes within the premises of TU and creating beautiful gardens and sidewalks.241 Kathmandu University Unveils Ambitious Plan to Position Nepal as a Regional Education Hub In the review period, Kathmandu University (KU) announced a strategic plan to position Nepal as a regional higher-education hub by significantly expanding its international profile and academic offerings.242 The university has established a target of enrolling foreign students at about 10% of total student numbers, aiming to attract them by leveraging Nepal’s lower cost of living and by forming research partnerships with leading global

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institutions.243 In order to fulfill this aim, KU now offers fee waivers and free accommodation (when available) for international students. Additionally, KU also launched a “Call for International Faculty” in July 2025 which attracted over 450 applications

globally.244 The university’s plan further includes doubling down on faculty research support by assigning each professor a research fellow, promoting joint degrees, and expanding collaborations with institutions in Europe, Australia, and beyond.245

Despite this ambition, KU faces significant obstacles like Nepal’s restrictive student-visa regime and absence of a comprehensive national scholarship/internship scheme for foreign students.246

Outlook In the upcoming quarter, Nepal’s education landscape will be shaped by a dual trajectory of recovery and reform. In the short term, the system is required to address significant learning disruptions caused by the September unrest through rebuilding damaged infrastructure, restoring examination processes, and ensuring affected students can resume academic activities without long-term disadvantage. The implementation of reform directives especially those related to depoliticization, curriculum updates, teacher rationalization, digital learning expansion, and strict examination-result timelines, will determine whether institutional efficiency and educational quality can be substantially improved. The requirement for computer teachers in all community secondary schools has the potential to narrow technology gaps if recruitment, training, and resource allocation are effectively managed. Similarly, the internationalization agenda of Kathmandu University offers a promising pathway for positioning Nepal competitively within the region. However, the progress will depend on broader systemic bottlenecks such as visa policies, financial incentives for foreign students, and national framework for academic mobility.

Artificial Intelligence in Education AI-Enabled Smart Classrooms Artificial Intelligence (AI)-enhanced smart classrooms have been transforming learning environments in Nepal. One example of such classrooms can be found in the Shree Buddha Daya Secondary Schools in Lamjung where the administration installed an interactive Idea-Hub board, computers, and highspeed internet to enable multimedia teaching and remote learning access.247 Even in Kathmandu, smart boards have been piloted in selected community schools alongside smart board-friendly pedagogy to modernize instruction and strengthen teacher capacity.248 The integration of technology and AI in pedagogical systems allows automated content recommendations, adaptive exercises, and real-time feedback allowing the addressal of teacher shortage and uneven learning outcomes. This, therefore, can be seen as the medium for reducing rural-urban disparities and promoting student-centered and technology supported learning across Nepal.

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Energy and Environment From September to November 2025, Nepal’s energy and environment landscape was shaped by major climaterelated shocks, policy shifts, and advances in renewable energy. Severe flooding in early October caused extensive loss and disruption across eastern and southern districts, highlighting the country’s increasing vulnerability to extreme weather events. Air pollution levels worsened across major cities as the winter season approached, while climate finance inflows for forest-carbon reductions signaled progress in conservation efforts. In the energy sector, hydropower projects moved forward despite ongoing community tensions, and renewable energy adoption expanded through household-level systems, biogas installations, and rooftop solar growth.

Policy reforms, including revised Environmental Impact Assessment (EIA) thresholds for solar projects and commitments to remove the 10% cap on solar generation, indicated stronger government focus on diversifying the energy mix. However, delays in utility-scale solar and storage projects continued to sustain reliance on fossilfuel backup systems, particularly during hydropower shortages.

ENVIRONMENT Severe Flooding Occurs Across Eastern and Southern Nepal In early October, intense rainfall triggered widespread flooding and landslides across Nepal’s eastern and southern regions, leading to high casualties, displacement, and significant damage to infrastructure. By October 6, national authorities and media reported at least 47 deaths, with roads, bridges,

and settlements inundated in districts such as Jhapa, Morang, Saptari, and Sunsari.264 The continuous rains overwhelmed local river systems, causing widespread disruptions to mobility and relief operations.265 International agencies noted that the rainfall was far above seasonal norms, blocking major highways, damaging homes and farmland, and affecting thousands of households.266 The climate-related disaster drew attention to Nepal’s exposure

FACTSHEET FY-2025/26 AD (2082/83 BS) Population receiving Access to Electricity from National Grid249

97.6%

Installed Capacity of Electricity (Annual Data 2024/2025)250

3591 MW

Installed Capacity of Hydropower (Annual Data, 2024/2025)251

3390 MW

Power Generation of New PPA in Hydropower Production (Annual Data, 2024/2025)252

932 MW

Power Generation of New PPA in Solar Energy (Annual Data, 2024/2025)253

170 MW

Domestic Solar Home Systems (Annual Data, 2024/2025)254

1,078,900

Total Domestic Electricity Consumption (Annual Data 2024/2025)255 Industrial Energy Consumption (Percentage of Total Domestic Consumption based on Annual Data 2024/2025)256

11,343 GWh

36.5%

Per Capita Electricity Consumption (Annual Data 2024/2025)257

465 kWh

National Peak Demand258 (Annual Data, 2024/2025)

2,409 MW

Total System Peak Demand (Annual Data, 2024/2025)

2,901 MW

Net Electricity Exports259

699 GWh of electricity

Net income from the cross-border electricity trade260

NPR 4.5 billion

Total Flood-Related Fatalities (2025, up to Nov)261

196

Total Landslide-Related Fatalities (2025, up to Nov)262

115

Forest Cover (National Level, Latest)263

44.74%

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to increasingly erratic monsoon patterns, which continue to intensify due to changing global climatic conditions.267 Air Pollution Levels Rise Across Nepal During the review period, air quality deteriorated across several urban centers, with rising concentrations of particulate matter linked to vehicular emissions, construction activities, seasonal crop burning, and stagnant atmospheric conditions.

Reports indicated that multiple cities, including Kathmandu, experienced increasingly unhealthy air quality levels, raising public health concerns as winter approached.268 Air pollution remained one of Nepal’s most persistent environmental challenges, affecting respiratory health, road visibility, and the overall quality of urban life.

Global Assessment Ranks Nepal as the Most NatureConnected Country A recent global assessment, published in the journal Ambio, on environmental connectedness placed Nepal at the top of the rankings, identifying the country as the most nature-connected nation worldwide.269 The study evaluated how strongly people interact with and feel linked to the natural environment, considering factors such as outdoor engagement, cultural traditions, reliance on natural resources, and ecological awareness. Nepal’s high ranking reflects the prominence of community forestry, mountain and forest-based livelihoods, and

long-standing cultural practices that emphasize coexistence with biodiversity. The findings also highlighted the effectiveness of local conservation models, which have strengthened people’s daily engagement with forest ecosystems. By contrast, several highly urbanized and industrialized nations ranked significantly lower, underscoring the importance of accessible natural spaces and strong conservation institutions.

Nepal Receives USD 9.4 Million (NPR 1.33 Billion) Under the Carbon Partnership Facility It was reported on November 14, 2025 that Nepal received USD 9.4 million (NPR 1.33 billion) from the World Bank’s Carbon Partnership Facility (CPF) for verified reductions of forestbased carbon emissions.270 The payment is part of a resultsbased financing framework under the Forest Carbon Partnership Facility’s Emission Reductions Program, which rewards countries for measurable progress in reducing deforestation and forest degradation. According to the World Bank, Nepal achieved significant emission reductions through improved forest governance, community forestry initiatives, and sustainable landuse practices.271 The funds will support continued conservation activities and benefit-sharing arrangements with local communities.

This payment represents one of Nepal’s largest results-based climate finance inflows to date, signaling strong international recognition of the country’s forest management successes.

HYDROPOWER Madhya Bhotekoshi Hydropower Project Begins Operations The 102-MW Madhya Bhotekoshi Hydropower Project in Sindhupalchowk began trial electricity production on September 1, 2025 and received approval to start commercial operations after an inspection by the Nepal Electricity Authority.272 Despite 14 years spent in development and severe cost overruns, this plant began supplying power to the national grid via Khimti substation, and is expected to generate around 542 million units of electricity annually, with revenue forecasted at NPR 2.75 billion (USD 19.46 million).

Tensions Rise Between Local Communities and Hydropower Companies Following the September protests, local communities, such as in the Jugal Rural Municipality of Sindhupalchok or communities in Bharabise around the Bhotekhoshi hydropower projects began demanding access to 10% of the shares of the profits of the hydropower projects in their proximity.273 On September 28, the Independent Power Producers' Association (IPPAN) sent a letter to the Minister for Home Affairs, Om Prakash Aryal, and the Minister for Energy, Water Resources and Irrigation, Kulman Ghising, citing increased risk for hydropower stations and calling for extra security. Additionally, in November, residents of Ilam Municipality-8 protested the 9.8

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MW Mai Beni and 3 MW Super Mai Cascade hydropower projects, accusing the companies of failing to deliver promised local development, including road paving, drinking water, and school support.274

RENEWABLE ENERGY Government of Nepal Restates Commitment to Mainstream Renewables On September 21, 2025, the Minister for Energy, Water Resources, and Irrigation Kulman Ghising met with representatives of the Renewable Energy Confederation Nepal (RECON) and reaffirmed his commitment to mainstreaming renewable energy into Nepal’s power grid to achieve Nepal’s commitment to reach net-zero carbon emissions by 2045.275 The RECON delegation urged swift enforcement of the Renewable Energy and Energy Efficiency Act, 2080 and advocated for meaningful private-sector involvement in the Energy Regulatory Commission.276 The submitted memorandum highlighted the need for net-metering, localized manufacturing, and the integration of rooftop energy systems into national policy, particularly focusing on employment creation for youth, as well as financial recommendations for reducing investment risk such as tax exemptions, integrating microhydropower into the national grid, concessional loan guarantees, and an expanded carbon market mechanism.

Solar Sector Sees Major Shift in Environmental Impact Assessment Rules

household biogas systems and nine large-scale biogas projects.

These interventions contributed to emissions reductions of an In October 2025, Nepal revised estimated 126,914 metric tons the Environmental Impact of carbon dioxide in FY 2081/82, Assessment (EIA) rules for generating approximately USD solar projects, requiring EIAs 660,000 (NPR 924 million) in for projects from 50 MW in hilly carbon credit earnings. More regions and 40 MW in the Terai, broadly, Nepal’s participation a significant increase from the in the Clean Development previous 10 MW nationwide.​ Mechanism has prevented The changes comes following around 6.68 million metric successful lobbying by the solar tons of CO₂ emissions and industry against the low threshold generated nearly USD 36 million for EIAs and the regulatory (NPR 5.04 billion) to date. The burden for small and medium- results underscored the role of sized projects.277 This decision is decentralized renewable energy intended to encourage domestic in expanding rural energy access and foreign investment and level while contributing to climate the playing field between the finance and emissions mitigation solar and hydropower sectors in goals.

Nepal. The Solar Power Producers Association of Nepal (SOPPAN) KEY DEVELOPMENTS also expects the policy change to aid Nepal’s energy export to Nepal Participates in COP30 the BBIN countries.

United Nations The 30th AEPC Reports 3.7 Million Households Reached Through Renewable Energy Programs As per its annual progress report, published on November 7, 2025, The Alternative Energy Promotion Centre (AEPC) reported that more than 3.7 million households across Nepal had gained access to renewable energy technologies as of FY 2081/82 BS (2024/25 AD).278 During the fiscal year, AEPC supported the addition of 402 kW of micro and small hydropower capacity, installation of 4,142 solar home systems, 12,686 rooftop solar units, 23,100 electric cookstoves, and 24,320 improved iron stoves.

The agency also facilitated 4,386

Framework Convention on Climate Change Conference of the Parties (COP30) was held in Belem, Brazil during the review period, with Nepal participating as a climate-vulnerable mountainous and landlocked country. 279 Nepal’s engagement reflected accelerating glacial melt and rising extreme weather events, informed by outcomes from the May 2025 Sagarmatha Sambad and consultations with civil society. The nine-member delegation, led by Minister for Agriculture and Livestock Development Dr. Madan Prasad Pariyar, participated in negotiation sessions, ministerial dialogues, and side events.280 During the Climate Finance High-

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Level Ministerial Dialogue, Nepal called for implementation of the new quantifiable collective goal, simplified access to climate finance for developing countries, and grant-based financing for the Loss and Damage Fund.

Nepal also advocated for stronger adaptation finance and public financing for mountain communities during consultations on the Global Goal on Adaptation. While the final COP30 text did not reference fossil fuels, Nepal advanced its mountain resilience agenda through Global Stocktake discussions.

Nepal Begins Formulation of a National Air Quality Management Action Plan

energy expansion, updated emission standards, and digital transformation as core development objectives.282 The document introduced measures to strengthen the regulatory framework for cleaner transport, including the adoption of Euro 6 standards, while also highlighting the need for reforms in the energy sector to support longterm sustainability. The roadmap reflects the government’s intention to balance economic modernization with environmental considerations amid growing energy demand.

PLANS AND PROGRAMS KMC Bans Plastic Burning in Kathmandu to Curb Air Pollution

During the review period, the government initiated the development of a national action plan aimed at strengthening air quality management across the country.281 The effort seeks to establish a coordinated national framework for monitoring, regulating, and reducing air pollution, with a focus on major urban centers where particulate matter concentrations remain persistently high. The formulation process includes inter-agency collaboration and technical support from development partners, signaling a more structured approach to addressing the country’s longstanding air quality challenges.

On November 9, 2025 Kathmandu Metropolitan City (KMC) banned the burning of plastic waste in Kathmandu to limit increasingly toxic air pollution. A NPR 10,000 (USD 70.75) fine was stipulated for breaching the policy.283 KMC also launched awareness and monitoring initiatives to enforce compliance with the Kathmandu Metropolitan City Environment and Natural Resources Conservation Act, 2077 BS, as well as the Fiscal Act, 2082 BS.284

Policy Roadmap Prioritizes Green Energy and Emission Standards

On November 5, 2025, the Asian Development Bank (ADB), the World Bank Group’s International Development Association (IDA), and the Swiss Agency for Development and Cooperation (SDC) signed a three‑year Memorandum of Understanding

A new policy roadmap outlining national priorities for the FY 2025/26 AD (2082/82 BS) period emphasized green

ADB, IDA, and SDC Sign ThreeYear MoU with Government for Climate-Resilience Infrastructure Investment in Koshi Province

(MoU) with the Government of Nepal to strengthen disaster risk reduction and climate‑resilient infrastructure.285 The collaboration targets hazard‑prone areas including the Dudh Koshi River Basin in Koshi Province and aims to enhance multi‑hazard risk assessment models, establish comprehensive early warning systems, and advance climate risk management and financial services for resilient infrastructure. Through joint analytical work, capacity building, and institutional strengthening, the partnership will support resilient investments in sectors such as hydropower, which is vulnerable to climate impacts including floods, droughts, landslides, and glacier melt.

The initiative also emphasizes technical cooperation, knowledge sharing, and engagement with local stakeholders to improve disaster preparedness and infrastructure durability in the face of climatic shocks.

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Outlook Environmental risks are expected to remain elevated in the coming winter months due to worsening air pollution and continued climate variability. The October floods highlighted the need to strengthen anticipatory action and expand early warning systems to better prepare communities for extreme weather. Access to climate finance is likely to remain critical, as Nepal advanced advocacy for stronger adaptation commitments at COP30, including support for mountain ecosystems and vulnerable populations. In the energy sector, policy reforms introduced this quarter, including eased environmental impact assessment thresholds and renewed emphasis on renewable integration, may accelerate private-sector participation. Nonetheless, delays in largescale solar and storage projects, coupled with local disputes around hydropower development, may slow progress. Strengthening resilience, regulatory clarity, and community engagement will therefore remain key to sustaining sector performance.

Artificial Intelligence in Environment Mercy Corps Nepal Enhances Anticipatory Action through AI The use of artificial intelligence (AI) for designing accurate and effective early warning systems for extreme weather events is accelerating globally. AI can be leveraged for anticipatory action for climate change on multiple fronts including forecasting and early warnings; risk mapping and vulnerability assessments; and analysis, communication and collaboration. On November 13, Mercy Corps Nepal won the Technology for Evolving Challenges in Humanitarian Contexts (TECH) 4 Resilience Challenge, an initiative launched in collaboration between the Gates Foundation and Trifigura Challenge. Mercy Corps’ project is titled Enhancing Anticipatory Action through AI and will be piloted in flood and heat-prone municipalities of the Sudurpaschim Province in Nepal. AI4Ready is an AI-powered platform designed to support faster, evidence-based, and inclusive anticipatory action by converting complex and fragmented data into clear, actionable guidance. It collects alerts from both national and local sources, translates advisories into Nepali, and generates concise, one-page field reports. The platform integrates multiple tools, including Smart Document Intelligence, the Vulnerability and Exposure Dashboard, the Early Warning Trigger Assistant, and the Community Feedback Monitor. Together, these features aim to streamline information and enhance decision-making for anticipatory action.

NEFPORT ISSUE 63 – JANUARY 2026

Health

FACTSHEET Health Indicators

The review period, from September to November 2025, was marked by considerable volatility shaped by political unrest, disease outbreaks, and ongoing systemic reforms in Nepal’s health sector. The September youth protests led to disruptions in health infrastructure, ushered in leadership changes, and heightened demands for psycho-social and medical support amongst affected and injured protestors. Nepal also grappled with disease outbreaks, essential medicine shortages, and major health system reforms during this period. The review period further witnessed that, while development partners, civil society, and government agencies responded through renewed coordination, there remains significant gaps in financing, service delivery and health system resilience.

Average Life Expectancy (at birth)286

KEY DEVELOPMENTS

Sharma Gautam in the role of interim Health Minister in late October 2025.296

Health Sector Faces Disruptions Following Gen Z Protest The Gen-Z led protest on September 8–9, 2025, and its aftermath disrupted the Nepali health sector, resulting in 76 deaths and over 2,000 injuries. In response, the interim government under former Chief Justice Sushila Karki announced compensation measures, with District Administrative Offices (DAOs) providing NPR 1.5 million (USD 10,507) to families of the martyred youths, including NPR 1 million (USD 7,005) as direct compensation and NPR 500,000 (USD 3,502) for funeral costs.292 The Ministry of Health and Population (MoHP) further directed federal hospitals to provide free medical care, while a rapid assessment by Save

the Children Nepal highlighted high demand for psychosocial counselling amid insufficient services, prompting the Urgent Health Sector Reform Action Plan on November 14, 2025, to mandate free counselling, and a Cabinet decision on November 19, 2025, to allocate NPR 15,000 (USD 105) to 2,429 injured protestors.293 The protests also damaged public health infrastructure, with 15 institutions destroyed and 37 partially damaged, mainly in Madhesh and Bagmati provinces, disrupting vaccine distribution, medicine storage, and basic health services.294 MoHP’s primary building was also destroyed by arson and temporarily relocated to the Nepal Health Research Council.295 The protest also led to the resignation of former Health Minister Pradip Paudel resigned in early September and the appointment of Dr. Sudha

71.3 years

Fertility Rate (per woman)287

1.9

Infant Mortality Rate (per 1,000 live births)288

21

Neonatal Mortality Rate (per 1,000 live births)289

28

Number of total health facilities290 Healthcare workers291

8,743 104,793

Private Sector Nurses Negotiate for Higher Wages Following the September protests, private sector nurses led strikes and negotiations about low wages and poor working conditions across the country.297 Private sector nurses' grievances stem from the lower wages compared to their public sector counterparts.298 As per the decision of the interim Prime Minister and Health Minister, a committee chaired by Dr. Shree Krishna Shrestha led negotiations between representatives of the health sector and the Nursing Association of Nepal and Association of Private Medical and Dental Colleges.299 On November 2, 2025, in dialogue with the Health Minister and the

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negotiating parties representing the striking nurses, the Ministry agreed to a new minimum monthly wage for private-sector nurses of NPR 34,730 (USD 245,74) and to better working conditions for nurses in the private health care system.300 However, the decision remained contentious and implementation remains a challenge.301 International Organizations Provide Emergency Support Amidst Cholera Outbreak Following a large cholera outbreak in the Parsa and Bara districts, the World Health Organization (WHO) and the United Nations Children Fund (UNICEF), with support of the Global Alliance for Vaccines and Immunisation (GAVI), delivered 1,018,100 doses of Oral Cholera Vaccine (OCV) on September 25, 2025 to support an emergency outbreak response.302 In addition, the World Health Organization (WHO) and the United Nations Children's Fund (UNICEF) continued supporting the Government of Nepal’s epidemiological surveillance systems, capacity building of health workers on case management and water quality testing, and distribution of cholera kits.303 Contraceptive Access Declines in Nepal Due to Funding Shortfalls and Supply Constraints Despite high demand for contraceptives, many health facilities, including the Bagmati Province Health Logistics Management Centre, faced shortages of Depo-Provera and intrauterine devices in Limited the past quarter.304

federal allocations for family planning, depreciation of the Nepali rupee against the US dollar, and reductions in United States Agency for International Development (USAID) funding contributed to supply pressures.305 These challenges emerged even as the Government of Nepal demonstrated strong commitment to expanding sexual and reproductive health services, increasing its domestic budget for quality-assured family planning commodities to over USD 355,000 (NPR 50.68 million) in 2024, up from the previous year.306 Strengthened investment, combined with policy alignment and coordination with UNFPA, enabled Nepal to secure USD 711,359 (NPR 101.55 million) in high-quality contraceptives through the UNFPA Supplies Partnership Match Fund, providing critical support to stabilize access for women and girls nationwide amid ongoing supply chain challenges.307 Nepal’s Female Community Health Volunteers Recognized for Pioneering Role in Maternal and Child Health On September 22, 2025, Nepal’s Female Community Health Volunteers (FCHVs) received the World Health Organization (WHO) South‑East Asia Region’s Public Health Champion Award in recognition of their transformative role in improving maternal and child health, increasing immunization coverage, promoting nutrition, and managing disease outbreaks in geographically and socially challenged regions of Nepal.308 The FCHV programme, established in 1988 and now active nationwide, has been widely credited with

advancing rural access to primary health services, promoting safe motherhood practices, delivering family planning commodities, and linking communities to health facilities.309 Their efforts contributed to substantial declines in maternal mortality from 901 per 100,000 live births in 1990 to 151 in 2021 and under‑five mortality from 162 to 28 per 1,000 live births, according to national survey and UNICEF data.

Recognition of the FCHV model as low‑cost and high‑impact underscores its contribution to strengthening community‑led health systems and expanding basic health services across Nepal’s remote areas.310

PLANS AND PROGRAMS Reforms Passed in Health Insurance Policy On September 5, 2025, former Minister Pradeep Poudel passed a revised directive for “Indigent Citizen’s Medication Programme,” requiring patients with chronic illnesses such as heart disease, kidney disease, cancer, Parkinson’s, Alzheimer’s, spinal injuries, and sickle cell anemia to register in the National Health Insurance Programme 311 The to receive monetary aid.​ Health Insurance Board was designated to route payments for chronic illness care, and beneficiaries were urged to enroll by mid-October to avoid lapses. However, following the Gen Z protests and the political instability and appointment of the new Health Minister Dr. Sudha Gautam, it is unclear what the status of the “Indigent Citizen’s Medication Programme” is and whether it is being implemented.​ On November 10, the new Health

NEFPORT ISSUE 63 – JANUARY 2026

Minister affirmed commitment to upholding the Constitution’s right to health free of cost and to incrementally reforming Nepal's health insurance system during the 31st-anniversary celebration of Bhaktapur Cancer Hospital.​312 Urgent Health Sector Reform Action Plan Unveiled On November 14, 2025, Minister Dr. Sudha Gautam unveiled the ‘Urgent Health Sector Reform Action Plan’ to improve governance, double-shift outpatient departments at federal hospitals, and streamline service delivery across the healthcare system.313 The plan comes after the Ministry of Health and Population (MoHP) mobilized provincial teams and departments to assess short, medium, and long term health system reform, assess nursing staff salary and benefits, and survey the situation of injured individuals at the Gen Z protests.314 The ‘Urgent Health Sector Reform Action Plan’ provides for psychosocial counselling at federal hospitals to injured youth in the September protests.

The reform plan also aims to accelerate the implementation of the national health insurance scheme, fast-tracking approvals and resource allocations for the Health Insurance Board.315 The plan further focuses particularly on maternal and infant mortality and introduced a 2-month program at the local and provincial level health facilities.

Lastly, the action plan called for a health desk at Tribhuvan International Airport to provide a health orientation program to Nepali youth migrating abroad for employment.

HEALTH RISKS Health Ministry Warns of Waterborne Disease Risks After Disasters On October 5, 2025, the Ministry of Health and Population urged the public to stay alert for potential outbreaks of waterborne and vector-borne diseases in the aftermath of continuous rainfall, potential landslides and other natural hazards.316 The spokesperson for the ministry, Dr. Prakash Budhathoki, cautioned on the possibility of surge of illness such as diarrhea, cholera, dengue and malaria post natural hazards especially where food, shelter and hygiene conditions remain compromised.317 To ensure rapid and micro-level disaster control, the ministry mobilized female community health volunteers and local health workers to promote safe drinking water and hygiene practices.318 Furthermore, the hospitals nationwide were instructed to remain on high-alert amid rainfall and landslide risks. 319 Four Month Spike of 756 Dog Bite Injuries Exposes Vaccine Shortages in Bardiya The critical shortage of antirabies vaccines in Bardiya left dog-bite victims without timely treatment in the past quarter.320 Since July, Bardiya District Hospital recorded 15-20 bite cases daily leading to injuries of 756 people.321 However, the unavailability of vaccines for nearly two months compelled patients to travel to Nepalgunj or Kohalpur or buy doses privately at NPR 3,500 (USD 25) per vial.322 Furthermore, officials in the district hospital indicated

the request for additional supplies of these vaccines from the provincial government, arrival of which remained uncertain.323 Health workers warned that rising attacks by stray dogs and monkeys require urgent vaccination and animal management measures to control rabies in Bardiya.324 Alarming Rise of Diabetes Recorded Among Young People in Kathmandu Preliminary health screening by the Kathmandu Metropolitan City showed around 22 percent of residents above 30 have diabetes, which is three-folds of the national average.325 The survey involved 19,660 people and found that 5% were newly diagnosed, 14.5% were previously diagnosed and 2.4% were not taking the prescribed medicines.326 As a result, doctors warned of rising cases among young people noting emergence of mid-point diabetes classified as type-5 diabetes associated with chronic undernutrition in adolescence or childhood leading to insulin deficiency due to impaired pancreatic development, different from the other two most common forms of diabetes.327 The other two popular forms of diabetes categorized as type-1 diabetes (emergent from the autoimmune disease attacking pancreatic cells making insulin) and type 2 diabetes (wherein pancreas make less insulin than earlier making the body insulin resistant).328 This is attributed to the increased consumption of processed foods, sedentary lifestyles, and rising obesity, leading to the medical experts urging for early screening, healthier diets and

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increased physical activities to curb complications.329 Dengue Cases Continue to Rise Despite Cooler Weather Despite a significant drop in temperatures, dengue infection continues to be on rise in Nepal.330 On October 29, 2025,

Sukraraj Tropical and Infectious Disease Hospital reported six positive cases among 30 fever patients tested.331 This indicates that 20 % of current fever cases are dengue.332 As a result, 6,600 infections and five deaths have been recorded across 77 districts.

Despite this, as most dengue

patients remain asymptomatic, experts anticipate the true numbers to be higher.333 Experts recommend that even with falling temperatures, the conditions favor mosquito survival, making dengue a year-round threat.334

Outlook In the upcoming months, Nepal ‘s health sector enters into a phase with both urgent challenges and opportunities for reforms. With the strained health infrastructure, governance and service delivery caused by the Gen Z protests, the incumbent leadership still attempts to stabilize systems through emergency action plans and policy directives. It is evident that the cholera outbreaks, waterborne disease risks, dengue cases, escalating diabetes among young adults, and critical shortages of vaccines and contraceptives pose the public health systems and supply chains to vulnerability.

However, in hindsight, international recognition of Female Community Health Volunteers, renewed health insurance reform commitments, wage negotiations for private sector nurses and expanded collaborations on Unified Health Care signals momentum for systemic improvement. This presents the incumbent government with challenges on implementing reforms, restoring damaged health facilities, managing disease outbreak and ensuring equitable access to essential medicines and psychosocial support amid constrained resources and evolving health needs.

Artificial Intelligence in Health AI-Powered X-Ray Attempts to Eradicate Global Tuberculosis The introduction of AI-powered chest X-ray screening has transformed tuberculosis (TB) detection by enabling rapid, portable, and accurate assessments across both rural and urban areas of Nepal.335 Mobile X-ray units equipped with AI algorithms can flag suspected TB cases in resource-limited settings for confirmatory testing and case management. Field pilots and hospital studies in Dhulikhel, Kathmandu, and Khumbu regions demonstrated higher sensitivity and improved specificity compared with routine radiology reads, supporting national guidance for integrating digital X-ray with AI in camp-based screening.336 The scalable approach of AI-powered X-rays is expected to accelerate TB elimination by enabling earlier case detection and faster initiation of treatment.

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Information and Communication Technology Even as the country faced unprecedented political unrest from September to November, Nepal’s ICT sector experienced significant advancements. The quarter began on September 4 with a controversial socialmedia ban that intensified Gen-Z–led demonstrations against corruption. As the political unrest grew, ICT platforms themselves became essential tools for civic organization and public participation through platforms like Discord. Following the unrest, a newly formed interim government continued advancing digital initiatives, such as installing free public Wi-Fi across Kathmandu and establishing the National AI Centre, signaling a commitment to strengthening digital infrastructure and citizen engagement. Other key developments, including the successful integration of National Identity Cards into voter registration, the Ministry of Finance’s expanded transparency platforms, and the growth of digital public services, demonstrated how technology can reinforce democratic processes.

Figure 9. Market Share of Telephone Operators (based on SIM subscriptions) Source: Nepal Telecommunications Authority, Telecommunication Indicators, Bhadra 2082347

FACTSHEET Indicators Number of fixed phone users337

413,670

Number of mobile phones338

29.3 million

Total Broadband Internet Subscriptions339

29.9 million

Fixed Broadband (Wired) Subscriptions340

10.87%

Fixed Broadband (Wireless) Subscriptions341

0.09%

Mobile Broadband Subscriptions342

89.04%

Number of transactions from e-wallets (MidSeptember 2025– Mid-October 2025)343

37.24 million

Number of QRBased Payments (Mid-September 2025– MidOctober 2025)344

37.36 million

Number of transactions through mobile banking (MidSeptember 2025– Mid-October 2025)345

64.35 million

Total amount transacted through mobile banking (Mid-September 2025– MidOctober 2025)346

NPR 548.52 billion (USD 3.88 billion)

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Figure 10. Market Share of Internet Service Providers (ISPs) in Nepal Source: Nepal Telecommunications Authority, Telecommunication Indicators, Bhadra 2082348

Figure 11. Broadband Service Technologies and User Distribution in Nepal Telecom Services Source: Nepal Telecommunications Authority, Telecommunication Indicators, Bhadra 2082349

In early September 2025, the Government of Nepal blocked 26 major social media platforms, including Facebook, X (formerly Twitter), Instagram, YouTube, WhatsApp, Reddit, and Discord, citing noncompliance with a registration mandate under the Ministry of Communication and Information Technology (MoCIT).350 The ban, announced on September 4, was ostensibly for regulatory oversight, but many believed it was an attempt to suppress digital dissent.351 The move provoked “Gen Z” protest, amidst an environment of increasing frustration with

corruption and nepotism, with thousands of youths joining protests on September 8, especially in Kathmandu. Young people, many of them students, gathered in large numbers to denounce both corruption and what they saw as an authoritarian clampdown on digital freedom.352 Under intense pressure, including a cabinet meeting called in response to the unrest, the Government of Nepal reversed its decision: on September 9, the ban was officially lifted, restoring access to those social media platforms.353

ICT Platforms Leveraged for Protest Coordination During the September 2025 protests in Nepal, ICT platforms played a critical role in organizing and coordinating demonstrations.

Discord servers, messaging apps, and other online tools were used to share information about meeting points, discuss logistics, and communicate real-time updates among participants.354 One prominent Discord server, Hami Nepal, hosted over 145,000 members, providing a central hub for distributing safety instructions, coordinating

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recruitment through QR codes, and exchanging guidance for collective actions.355 Coordination was decentralized, with participants organizing activities without formal leadership, demonstrating digital platforms’ role in collective Participants mobilization.356 used online campaigns and messaging to stay connected across different locations, share strategic updates, and sustain engagement over several days.357 Discord played a significant role beyond protest coordination. The digital platform became a space for political experimentation.

Protestors used a “Youth Against Corruption” Discord server, organized by Hami Nepal, to debate, vote in polls, and ultimately nominate Sushila Karki as interim prime minister.358 Over 100,000 people joined these Discord conversations to deliberate on governance, with structured debates and polling tools used to guide Analysts their decision.359 described this process as an “unprecedented experiment in digital democracy,” with the server serving as a parallel civic assembly where participants collectively shaped their leadership.360 Government Installs Free Public WiFi Across Kathmandu Jagadish Kharel joined the cabinet of the interim government as Minister for Communications and Information Technology on September 22, 2025. On the same day, as his first order of business, Minister Kharel announced plans to provide free WiFi services in public spaces across ten cities, including Kathmandu, within

five months. On November 5, 2025, Minister Kharel further inaugurated the free internet service at the New Bus Park in Gongabu and announced that free internet was available at 19 locations across the valley.361 The MoCIT also connected major sites including hospitals, the Pashupatinath Temple area, and Tribhuvan International Airport.362 The internet service was provided in partnership with Nepal Telecom, Worldlink, and Vianet.363 During the inauguration event, Minister Kharel affirmed that free internet would also be extended to the capital cities of all seven provinces.364

new voters to the electoral roll following the completion of the deadline on November 21, 2025.368 Of the newly listed voters, 492,180 were added through their National Identity Cards, while 344,914 registered through full biometrics.369 Commission spokesperson Narayan Prasad Bhattarai said the integration of National ID data significantly boosted online applications, enabling eligible citizens to register without visiting district offices.370

Nepal Strengthens Digital Infrastructure with AI Centre

On October 7, 2025, the Ministry of Finance (MoF) issued the Third National Public Financial Management Reform Strategy (2025 - 2030).371 The strategy included plans to develop integrated public financial management information systems and a citizen-accessible These digital platform.372 initiatives aimed to enhance transparency and improve public service delivery by strengthening budget credibility, revenue mobilization, fiscal coordination, and accountability.373

On August 11, 2025, the Council of Ministers formally approved the National Artificial Intelligence (AI) Policy.365 In line with this policy, the Government of Nepal established a National AI Centre under the MoCIT on November 10, 2025 to enhance efficiency in public and private sector services through digital technology.366 The centre was established to serve as Nepal's central authority for AI governance, coordinating research, development, standards, and international cooperation while managing awareness programs, risk mitigation, quality standards, and acting as the secretariat for the AI Regulation Council.367 National ID Cards Streamline Voter Registration In the review period, digital integration through National Identity Cards accelerated voter enrollment. The Election Commission (EC) added 837,094

Ministry of Finance Advances Digital Services and Transparency Initiatives

On September 22, 2025, the MoF also launched a toll-free hotline and email service to curb corruption and provide direct public access to report irregularities.374 As of November 3, 2025, the ministry received more than 3,500 complaints through email, WhatsApp, and the Hello Sarkar platform.375 The MoF reported that 80% of the complaints were related to issues in local government budgets.376 The Ministry of Finance further

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launched a transparent online platform to track contributions to the Physical Infrastructure Reconstruction Fund, established to rebuild public structures damaged during the Gen-Z

protests.377 By November 16, 2025, the digital system recorded NPR 75.37 million (USD X million) from 369 contributors.378 The platform enables realtime donation tracking and

automatically processes tax deduction eligibility, with the donation period remaining open until December 31, 2025.379

Outlook The September 2025 events underscored the critical role of ICT platforms in shaping civic and political engagement, highlighting how digital tools influence social and governance dynamics.

With social media access restored, attention is expected to shift toward establishing clearer digital governance frameworks that maintain regulatory oversight while preventing abrupt disruptions.

Complementing this, the National AI Centre is set to roll out its first AI-based programs aimed at improving public service delivery and governance efficiency, while National Identity Card integration could expand beyond voter registration to other government and private sector services. At the same time, the Ministry of Finance’s digital transparency platforms and expansion of free public WiFi in underserved areas are likely to strengthen accountability and broaden access. Platforms like Discord have already demonstrated their potential for rapid mobilization and structured debate, suggesting greater experimentation with digital participation mechanisms in the near future. Collectively, these developments indicate that ICT infrastructure will remain central to citizen engagement, providing a key lens for observing the evolving interplay between technology, civic participation, and government policy.

Artificial Intelligence in ICT Estonia's AI Government Revolution: How Nepal's ICT Sector Can Lead Estonia has become a digitally advanced government through strategic deployment of artificial intelligence (AI), which they call "Kratt," a mythical servant built from hay or old household items.380 Since adopting its first AI strategy in 2019, Estonia now has over 200 identified AI use cases across central government, with 37% of public servants applying AI solutions in their roles.381 The country also developed "Bürokratt," a national architecture for conversational services that connects large language models to official government services, handling secure identity, consent, and routing functions for fifteen government organizations.382 Through their AI Leap initiative, Estonia aims to save roughly 21 million hours of administrative work annually by 2030, freeing resources for higher-value tasks while improving citizen experience.383 This success story provides important insights for Nepal’s ICT sector as it works toward developing AIenabled government services. By adopting approaches similar to Estonia’s use of AI, Nepal’s ICT companies could create a national digital identity system supported by multilingual AI chatbots capable of handling routine government inquiries. Such a system would significantly reduce bureaucratic inefficiencies that currently force citizens to spend days securing basic services, from obtaining citizenship certificates to registering businesses. For Nepal’s ICT industry, developing these AI-driven public service solutions offers a pathway to contributing meaningfully to improved governance outcomes across developing nations.

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Infrastructure and Real Estate The three-month review period, from September to November 2025, was marked by the Gen Z protests, during which widespread vandalism and arson affected numerous private and public buildings. It was also a period of severe monsoon floods and landslides which damaged many of the major highways, hydropower projects and bridges. On the brighter side, Nepal strengthened its power trade with India with agreements to build two power transmission lines and started immediate efforts for reconstruction of the buildings damaged during the Gen-Z protests with wide participation of the public as well as private sector. Moreover, the damages of life and property from floods and landslides were estimated to be lower this year compared to previous years because of better disaster response and management. On the real estate front, the government made attempts to formalize high value property transactions, restore land records damaged during the September protests, and temporarily scrap the land fragmentation ban to ease deals while also encouraging local government bodies to complete land-use classification. Overall, these actions reflect navigation between shock-driven reconstruction needs and long-delayed structural reforms.

INFRASTRUCTURE UPDATES Physical Infrastructure Damages from Gen Z Protests Estimated at Around NPR 78 billion (USD 580 million) The Gen Z protests on September 8 and 9 inflicted severe damages to the nation’s public and private physical infrastructure.

Many government buildings,

including Singha Durbar, the Federal Parliament building, and the Supreme Court were vandalised during the protests.385 Along with the public and government buildings, private sector infrastructure was also targeted. Multiple properties under the Chaudhary Group (CG), IME Group, and Bhatbhateni Supermarket were vandalised and torched, including factories,

Factsheet384

FY 2025/26 AD (2082/83 BS) up to mid-November 2025

Total Length of Road

35490 km

New Road Constructed

107 km

Total Number of Bridges Constructed

16

Construction of Railway

68 km

hotels, car showrooms, cable car stations and dozens of supermarkets.386 A governmentappointed committee under the National Planning Commission stated that preliminary estimates of the total losses arising from the damages are at around NPR 78 billion (USD 580 million).387 Within this, private sector losses accounting to nearly NPR 36 billion (USD 250 million)388

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Government Collects Around NPR 93 million (USD 650,000) through Physical Infrastructure Reconstruction Fund On September 25, under the leadership of newly appointed interim Minister Kulman Ghising, the Ministry of Urban Development established the Physical Infrastructure Reconstruction Fund with the motive of reconstruction of physical structures, economic revival, and relief distribution and called for support from all levels of government, private sector, Nepali nationals living in the country and abroad as well as the neighboring countries and international organizations.389 The donations made to the fund can be claimed as tax-deductible in the current fiscal year.390 An online portal has been created for transparent tracking of all donations received in the fund and as of November 25, around NPR 93 million (USD 650,000 million) was received.391 392 Government Terminates Stalled Road Projects The government identified a total of 234 contracts for road and bridge construction in the past quarter which have been left incomplete for a long time period and is set to terminate those projects.393 These contracts were thus classified as stalled contracts which include projects worth over NPR 20 million (USD 140,000) which have been extended for over 100% of the contract period but have progress of less than 50%, extended for over 200% but progress of less than 80% and extended over

400% but progress of less than 95%.394 Following this decision, various projects in different districts were terminated with 50 projects terminated on October 20 alone.395 Similarly, on November 17, 25 additional projects were cancelled.396 Monsoon Rains Cause Severe Damages but Fewer Deaths The late monsoon rains between October 3 and 6 inflicted severe damages to numerous roads of Nepal including NarayangadhMugling highway, BP highway, Mechi highway and many others which would require repairs at an estimated cost of NPR 10.68 billion (USD 74.45 million), adding to the cost of approximately NPR 1.7 billion (USD 11.85 million) for repairing damages of previous years.397 The heavy rains also damaged 13 hydropower projects disrupting electricity supply of 105.4 MW along with causing nearly NPR 100 million (USD 700,000) in losses to the agriculture sector by eroding several river embankments in the Eastern Terai region and damaging major irrigation projects.398 However, it is worth noting that this year disaster response was better compared to previous years.

Early warnings, road closures and readiness in deploying excavators and technical assistance in high-risk areas led to lower death tolls and speedy resumption of the blocked roads; along with this, appropriate measures were adopted to safely divert floodwaters in the irrigation system thus preventing damages.399

Nepal-India Power Trade Strengthens with Agreement to Build Two 400kV Power Lines On October 29, Nepal and India signed a joint venture and shareholder agreement to construct two 400 kV transmission lines.

The agreements position Nepal Electricity Authority (NEA) of Nepal and Power Grid Corporation of India (PGCIL) to establish two companies, one in Nepal and the other in India for the construction of transmission lines.400 The proposed projects include a 135km Inaruwa-New Purnea 400kV double circuit transmission line with a total cost of NPR 6.885 billion (USD 48.11 million) and a 218 km LamkiBarelly 400kV double circuit transmission line with a total cost of NPR 12.41 billion (USD 86.7 million).401 Both projects will be financed with 80% debt and 20% equity wherein NEA will contribute NPR 1 billion (USD 6.97 million) in the Nepali company for its 51% shareholding and NPR 2 billion (USD 13.94 million) in the Indian company for its 49% shareholding.402

REAL ESTATE UPDATES Government Tightens Regulation of High-Value Property Deals From late September this year, the government began taking actions geared towards tightening regulations in the real estate sector. On September 25, the Cabinet meeting endorsed a decision to make it compulsory to require a license for real estate transactions above NPR 30

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million in a single deal within all six metropolitan cities and 11 submetropolitan cities, following a proposal from the Ministry of Land Management, Cooperatives, and Poverty Alleviation.403 This rule came into effect on October 13 after the Ministry of Land Management, Cooperatives and Poverty Alleviation published a notice about this decision in the Nepal Gazette.404 To implement this, in a public notice issued on October 30, the Department of Land Management and Archives (DoLMA) invited firms to apply for these licenses and mentioned a license fee of NPR 500,000 (USD 3,536) for transactions up to NPR 50 million (USD 353,935) and a NPR 1 million (USD 7,072) fee for companies that exceed that individual transaction amount.

These actions have been taken to formalize high value property transactions while curbing tax evasion and money laundering. 405 Land Problem Resolution Commission Abolished and Reinstated On October 9, 2025, the government abolished the Land Problem Resolution Commission, which was put into place a year back by the KP Oli led government and its district committee to streamline land governance.406 However, on October 29, 2025, the Supreme Court issued a shortterm interim order directing the government, led by Sushila Karki, to maintain the status quo and to keep the Commission and its district committees in place. Along with this, the court gave 15 days for the Office of the Prime Minister and Council of Ministers, and the Ministry of Land Management, Cooperatives

and Poverty Alleviation to submit a written response.407 Post-Protest Land Administration Reforms and Regulatory Updates The September protests led to the vandalization of land revenue offices in Nepalgunj, Kalanki, Kaski, Ghorahi, Tulsipur and Bharatpur, destroying around one million land related documents.408 Following this, on October 10, the Department of Land Management and Archives (DoLMA) issued a circular ordering land revenue offices to simplify re-registration by stating that ownership could be reconstructed using only citizenship, original land certificates, field books, local government land records and updated property tax receipts, with the actual presence of the landowners for verification.409 Meanwhile, since the Land Use Regulations, 2022 halted fragmentation and only 33.60% (253 out of 753) of local levels had completed land-use classification, on November 10, 2025 the third amendment of the regulation was approved.410 This amendment had temporarily allowed land fragmentation and set the deadline to complete agriculture vs non-agriculture categorization as mid-July 2026 which was effective after publication in the Nepal Gazette.411 Real Estate Revenue Declines According to the data provided by the Department of Land Management and Records (DoLMR), revenue from real estate trade collected by land revenue offices across Nepal

in the first four months of FY 2025/26 AD (2082/83 BS) amounted to NPR 11.93 billion with the highest revenue among these months being collected in the month of Shrawan (midJuly to mid-August) amounting to NPR 3.29 billion.412 Despite the government taking actions to promote real estate transactions and making amendments to the Land Use Regulations, 2022, the figures depicted a gradual decline in the real estate revenue in these months with a 16.54% fall in revenue in Kartik (mid-October to mid-November) compared to Shrawan (mid-July to midAugust).413

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Outlook Going forward to the next quarter, the infrastructure and real estate space will likely be moulded by the key factors of post-protest reconstruction pressure, regulatory tightening, and investment reorientation. In the short run, public and private spending will shift towards repairing damaged infrastructures, roads, hydropower plants, and buildings, which may sideline some new projects for a while but will support construction activity. Similarly, the termination of stalled road contracts may improve accountability and project quality, albeit slowing delivery in the beginning. In the real estate arena, licensing requirements for high value deals, simplification of the reregistration of the damaged property post the Gen-Z protest and temporary relaxation of the land fragmentation ban might increase compliance. Even though these developments run parallel with the fall in landrelated revenues in the review period, overtime reduced transactions risks and orderly urban growth are likely to follow.

Artificial Intelligence in Infrastructure Advancing Urban Infrastructure of Nepal Through Artificial Intelligence (AI) Lalitpur Metropolitan City (LMC) has leaped towards modernized urban development by integrating AI into its traffic management system. LMC has been using ‘intelligent traffic lights’ in five locations of one of its main road sections since December 2024.414 The design, feasibility studies, supply, and installation of the project cost around NPR 53.80 million (USD 380,000) with operation and maintenance cost for five years estimated at NPR 11.80 million (USD 82,500).415 The traffic lights feature a vehicle detection system that counts the number of vehicles in real time, feeds the data into the server and adjusts the lights’ operation turning the green signal to the direction where there are more vehicles.416 The automated system has proven to be more helpful and efficient in managing traffic congestion through extension of green light time in busy lanes and shortening of green lights in empty lanes to ease pedestrian crossing.417 However, it does have to face few challenges; majorly the disorderly traffic behaviors like pedestrians not using zebra crossings, motorcycles violating lane discipline, etc. which cannot be solved by smart traffic lights alone, therefore proper awareness is necessary. Additionally, proper training of the maintenance staff will be required as the existing staffs may lack the technical expertise for maintenance of new technology and devices.418

NEFPORT ISSUE 63 – JANUARY 2026

Tourism

FACTSHEET

International Visitor Arrivals (January 2025 – October 2025)427

Nepal’s tourism industry recovered steadily yet unevenly in the past quarter. The first half of 2025 saw a slight dip in arrivals compared to the previous year, but July brought hope with a near full recovery to the pre-pandemic levels.

Beyond numbers, this quarter was marked by significant developments including the launch of the Tourism Policy 2025, aimed at steering growth toward sustainability and inclusivity, and the release of NTB’s record budget, focused on global promotion and domestic upgrades.

New mountaineering routes, cultural diplomacy abroad, and rising foreign investment commitments further contributed to the momentum, even as challenges such as workforce shortages and operational hurdles at Pokhara Airport reminded us of the road ahead.

Tourist Arrivals in Nepal Makes a Strong Rebound in October After September Protests In September 2025, Nepal recorded a total of 78,711 international visitors.419 Due to Gen Z protests, this marked a decline of 18.3% compared to corresponding month last year when international tourist arrivals were 96,302.420 Despite this, the September 2025 number reflected approximately 85% recovery of the pre-pandemic level for the same month in 2019.421 In contrast to the decline of tourist arrivals in September, according to statistics released by the Nepal Tourism Board (NTB), a total of 128,443 tourists visited Nepal in October 2025, marking a significant rise in arrivals during the peak tourist season.422 This marked a 3.3% increase

compared to the same month last year with 124,393 tourist arrivals and a 96% recovery compared to pre-pandemic figures from October 2019.423 The month of October this year saw the highest tourist arrival in 2025. So far, 943,716 tourist arrivals have been recorded in the first 10 months of 2025 which is marginally higher than the 941,024 arrivals recorded in the same period in 2024.424 This shows a recovery of 97.7% compared to the same period in 2019.425 India continued to dominate as the largest tourist-generating country for Nepal, contributing 13.5% of total arrivals with 17,298 visitors in October 2025. USA followed with 13,286 arrivals (10.3%), while the United Kingdom accounted for 8,718 visitors (6.8%), according to the Nepal Tourism Board (NTB).426

943,716

Proposed FDI Commitments in Tourism (mid-July 2025 – mid-October 2025)428

18.9% of total FDI NPR 11.17 billion (USD 79.03 million)

Number of FDI Projects in Tourism429

33.1% of total projects 233

Average Length of Stay (2024)430

13.3

Foreign Exchange Earnings from Tourism (mid-July 2025 to midSept 2025)431

NPR 11.58 million (USD 11.69 billion)

Total Tourism Revenue (2024)432

NPR 88.11 billion (USD 623.40 million)

Average Daily Spending per Tourist (2024)433

NPR 5,766.67 (USD 40.8)

Number of Registered Star Hotels (2024)434

214

Government Royalty from Mountaineering Expeditions (2024)435

NPR 0.93 billion (USD 6.58million)

Number of Registered Travel Agencies (2024)436

4,963

55

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DOCKING NEPAL’S ECONOMIC ANALYSIS

Figure 12. Tourist Arrivals to Nepal (from Jan 2025 to Oct 2025 AD) Source: Current Macroeconomic and Financial Situation of Nepal (Based on three months data of 2025/26)437

Tourism Disruptions and Recovery Amid Gen Z Protests The violent Gen Z led protest during early September 2025 caused serious disruption across Nepal’s tourism sector.

The unrest swiftly escalated into large-scale arson and vandalism of high-profile hotels and public infrastructure, triggering both immediate safety concerns and reputational damage for Nepal’s tourism industry.438 Major hotels and resort brands in Kathmandu Valley, Pokhara, and other key destinations suffered damage and losses estimated at NPR 25 billion (USD 176.88 million), with the Hilton Kathmandu alone facing damage exceeding NPR 8 billion (USD 56.60 million).439 Flight operations were also severely affected when the country’s primary gateway, Tribhuvan International Airport (TIA) in Kathmandu, was shut down amid security concerns on 9 September, 2025.440 The suspension of both international and domestic flights stranded

travelers and amplified the tourism shock.441 Amid the protests, several stakeholders coordinated efforts to protect the tourism sector from potential fallout. On September 11, 2025, the immigration department informed tourists whose visas expired on or after September 8 to renew them free of charge at Tribhuvan International Airport (TIA).442 The Nepal Army supported the initiative by facilitating tourist Furthermore, transportation.443 the Tourist Police and Nepal Tourism Board (NTB) coordinated assistance for tourists across various regions of Nepal.444 Hotels in Nepal’s capital and major tourist hubs reported the impact almost immediately. Bookings in key areas were only around 30% of normal during October’s peak season, a drop attributed to residual fears among visitors even after the immediate unrest subsided.445 In response to the crisis, authorities moved quickly to restore order and reassure both visitors and investors. The airport

reopened after nearly 24 hours of closure once security was reestablished and the civil aviation authority lifted the suspension Meanwhile, of operations.446 tourism industry representatives and government agencies said that popular trekking areas and cultural sites remained safe and accessible, signaling a return to normal functioning.447 NTB’s report noted that after the initial shock, tourism activity began to rebound as security stabilized.448 Tourism Strained by WeatherRelated Disruptions and Infrastructure Breakdowns Around the beginning of October, heavy rain, floods and landslides across Nepal severely disrupted tourism activity, cutting off major road networks and reducing visitor flows at the height of the festive travel season. In the eastern hills, widespread damage to roads and bridges brought tourist arrivals to a halt, leaving hotels and homestays empty after floods and landslides devastated key routes such as

NEFPORT ISSUE 63 – JANUARY 2026

the Mechi Corridor.449 Pokhara’s tourism business was similarly hit when continuous rainfall during the Dashain period pushed hotel occupancy down to nearly one-third of normal levels, prompting authorities to issue travel warnings and temporarily suspend vehicle movement.450 Although destinations like Pokhara and Chitwan experienced a short-lived rise in domestic travel during Tihar, the recovery was brief as persistent weatherrelated disruptions continued to affect accessibility and traveller confidence.451 The prolonged impact of damaged infrastructure and unstable weather conditions demonstrated how vulnerable Nepal’s tourism sector remains to natural hazards and mobility constraints.452 Mustang Region Visitor Surge Followed by Rescue Operation Due to Heavy Snowfall In mid-October, the Mustang district recorded an influx of 40,878 tourists comprising 37,146 domestic and 3,732 foreign visitors via the Beni-Jomsom route, alongside 11,808 vehicles entering during the period.453 On October 24, 2025, the district witnessed a single-day peak of 6,859 tourist arrivals.454 However, heavy snowfall on the night of October 27, 2025 triggered difficulties for visitors, especially around the Muktinath temple route where the temperature plunge froze water features.455 A group of 15 trekkers including three foreign nationals were trapped around 5,100 m in the Hidden Valley region of Thasang Rural Municipality-1 after a sudden snowfall.456 A joint-team

rescue, involving the Nepal Army, Armed Police Force Nepal and Nepal Police, safely evacuated the group despite difficult conditions.457

POLICIES AND REGULATIONS

MOUNTAINEERING UPDATES

Recognizing the need for safer and more sustainable mountain tourism, Nepal formalized its vision for trekking trail management. On September 8, 2025, the Ministry of Culture, Tourism and Civil Aviation issued the Trail Standards Directive (2025) to enhance trekking trail safety, uniformity, and sustainability across Nepal.464 The directive classifies trekking trails into three categories: hiking trails (minimum five km, completed within a day), easy trails (below 3,000m), and adventurous trails (above 3,000m).465 Trails must connect places of natural, cultural, and historical significance, avoid direct links with motor roads, and ensure lodges or safe accommodation within five km.466 For pedestrian safety, the directive mandates signboards, railings, cautionary notices, rescue infrastructure, helipads, and waste management measures.467 Local governments must conduct sanitation, tree planting, and beautification activities with community participation, while provincial governments will fund easy trails and the federal government will fund adventurous trails.468 The Department of Tourism can conduct trail audits and shut down trails that fail to meet the standards.469

Nepal Enforces New Climbing Permit Fees for Everest and Other Peaks The Department of Tourism, Government of Nepal, implemented a significant increase in the climbing permit fee for foreign mountaineers on the south (normal) route of Mount Everest effective September 1, 2025.458 The royalty per foreign climber for the spring season (March-May) was raised from USD 11,000 to USD 15,000 (NPR 1.55 million to NPR 2.12 million).459 Similarly, fees for the autumn season (September-November) was raised from USD 5,500 to USD 7,500 (NPR 780,000 to NPR 1.06 million), and the winter/ monsoon season (DecemberFebruary and June - August) from USD 2,750 to USD 3,750 (NPR 390,000 to NPR 530,000).460 For Nepali climbers the spring‐ season permit has doubled from NPR 75,000 to NPR 150,000 (USD 530.64 to USD 1,061.27). In order to align with the fee hike, new regulation changes were also introduced.461 The government cited overcrowding, safety concerns, and environmental management on Everest’s heavily trafficked route as key drivers behind the revision.462 The higher fee is intended to both regulate climber volume and channel revenue into safety, rescue and waste-management efforts.463

Nepal Issues Trail Standards Directive for Trekking Routes

57

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DOCKING NEPAL’S ECONOMIC ANALYSIS

NEW DEVELOPMENTS Kathmandu and Bhairahawa Gain New International Connectivity The state-owned Nepal Airlines Corporation (NAC) began direct flights from Kathmandu, Nepal to Guangzhou, China on September 27, 2025.470 The launch came 15 years after NAC's initial application in January 2015.471 NAC added three weekly flights to the route, which was previously operated by China Southern Airlines and Himalaya Airlines.472 Similarly, a private carrier, Buddha Air, resumed direct flight from Kathmandu, Nepal to Kolkata, India on October 19, 2025.473 Initially operating three weekly services, the airline company added a fourth from November 15 in response to passenger demand.474 The route was discontinued by Buddha Air in 2019 after just nine months of service due to intense competition and market dynamics at the time.475 The reintroduction was fueled after Air India withdrew from this route to concentrate on Delhi, providing opportunity for Buddha Air.476 Furthermore, Gautam Buddha International Airport (GBIA) resumed international flights on October 26, 2025 with Thai AirAsia resuming BangkokBhairahawa-Bangkok flight.477 This came after the airport went six months without international operations.478 The airport hosted 20 flights weekly when Tribhuvan International Airport (TIA) was undergoing maintenance in April of 2024.479 Once TIA resumed its operations, GBIA hosted only occasional chartered flights until Thai AirAsia began regular twiceweekly service on October.480

Modern Terminal at Nepalgunj Airport Elevates Visitor Experience Nepalgunj Airport, a key gateway to western Nepal, completed a state-of-the-art terminal building with an NPR 2.98 billion (USD 21.08 million) investment to enhance visitor facilities.481 The three-story structure includes a semi-basement for commercial use, 14 passenger check-in counters, three VIP lounges, a children's play area, and dedicated rooms for customs and quarantine checks.482 Designed to handle 1,600 passengers per hour during peak times, the development also incorporated landscaped gardens and an internal road ranging from five to 14 meters wide.483

PROGRAMS, EVENTS, AND CAMPAIGNS NTB Conducts Tourism Promotion Drives and Capacity-Building Efforts Following the unrest, Nepal launched tourism revitalization campaigns to restore confidence in the sector. The Nepal Tourism Board (NTB) and ten Nepali companies participated in the 12th Asian Tourism Fair in Dhaka, Bangladesh (September 1820) to signal Nepal's readiness to welcome tourists.484 This momentum continued during the 46th World Tourism Day celebration in Kathmandu on September 27, 2025, where Prime Minister Sushila Karki emphasized developing mountain tourism as a full-fledged industry and establishing tourism as a foundation for sustainable development.485 Karki and other stakeholders reaffirmed Nepal as a welcoming, secure destination

after recovery from the Gen Z movement.486 From September 25-28, NTB and eight Nepali tourism companies joined Tourism Expo Japan 2025 in Aichi, where Japanese travelers showed particular interest in Himalayan trekking, cultural heritage, and wildlife adventures.487 On November 6, Nepal also participated in the World Travel Market (WTM) 2025 in London, England, with a delegation led by the Secretary of the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), and the Chief Executive Officer of NTB, where Nepal showcased sustainable tourism vision.488 The delegation was accompanied by 27 Nepali travel and tourism companies.489 The Nepal Pavilion attracted global attention through traditional Lakhey dance performances and live Newari music.490 On November 17, 2025, the Nepal Tourism Board (NTB) and Pacific Asia Travel Association (PATA) Nepal Chapter jointly organized a two-day workshop on "AI for Tourism & Hospitality Excellence" in Kathmandu.491 Led by Faye Hao from The Hong Kong Polytechnic University, the workshop covered AI foundations, ethical considerations, and practical applications across hotels, airlines, destination management, and meetings, incentives, conferences, and exhibitions (MICE) operations.492 60 professionals from Nepal's travel and tourism industry participated in the workshop.493 The workshop aimed to elevate professional capabilities and support Nepal's journey toward a smarter and more resilient tourism sector.494

NEFPORT ISSUE 63 – JANUARY 2026

Outlook The coming quarter is likely to build on the renewed momentum generated by October’s strong arrivals, but sustained growth will depend on how effectively Nepal mitigates risks exposed during this period. The October spike is also attributed to the large number of diaspora Nepalis with foreign passports visiting Nepal. In the future, it will be important to work on segregated data for better policy decisions. The Gen Z protests demonstrated how political instability can suppress demand, and ongoing perceptions may continue to affect hotel occupancy and bookings. Weatherrelated vulnerabilities particularly landslides and road closures could re-emerge as challenges if infrastructure restoration is delayed. However, the introduction of the Trail Standards Directive, improved air connectivity from Kathmandu, Bhairahawa and Nepalgunj, and Nepal’s active participation in global tourism fairs position the country to strengthen international confidence.

Artificial Intelligence in Tourism AI-Powered Tourism Platforms: Lessons from The Bahamas The Bahamas Ministry of Tourism, Investments and Aviation partnered with Mindtrip, an artificial intelligence (AI)-powered travel platform, to embed AI-driven technology into its official tourism website on November 10, 2025.495 The collaboration enables visitors to receive customized trip plans tailored to their specific preferences, whether seeking adventure activities, cultural experiences, culinary tourism, family vacations, or romantic getaways.496 This digital transformation represents a significant advancement in how The Bahamas engages with potential tourists and positions the destination as a leader in adopting AI tourism technology.

Nepal's human and natural resources position it well to adopt a similar AI-driven tourism model. The country has a growing tech-savvy youth population and emerging information technology companies across the country that could develop or customize AI platforms. Nepal's diverse offerings provide rich data for AI personalization: trekking guides with decades of mountain expertise could contribute knowledge about trails and routes, cultural experts could provide insights about spiritual experiences and temple histories, and wildlife specialists could share information about national parks and safaris.

By partnering with local tech startups or international AI companies, Nepal could create an AI system trained on local knowledge and integrated into the various government platforms.

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DOCKING NEPAL’S ECONOMIC ANALYSIS

4

Market Review

NEFPORT ISSUE 63 – JANUARY 2026

Financial Market

Factsheet497 Consumer Price Index (mid-October 2025)

1.47%

During the review period (September 1, 2025 to November 30, 2025), based on the three months’ data of FY 2025/26 AD (2082/83 BS), Nepal's Balance of Payments (BoP) recorded a surplus of NPR 594.54 billion (USD 4.30 billion), offering some external stability even as domestic economic pressures grew. The financial system, however, continued to struggle with excess liquidity, reflecting weak loan demand and limited private-sector borrowing.

At the same time, bank and financial institutions saw a noticeable rise in non-banking assets, renewing concerns about credit risk and the overall health of their portfolios.

International assessments presented a mixed picture: while Nepal’s credit rating was reaffirmed due to its manageable external debt and steady foreign exchange reserves, global institutions warned that political uncertainty and recent unrest could slow economic growth in coming years.

Gross Foreign Exchange Reserve (mid- October 2025)

NPR 2.98 trillion (USD 21.21 billion)

Buying Exchange Rate per USD (mid- October 2025)

NPR 140.22

Weighted Average 91-day Treasury Bill Rate (mid- October 2025)

1.91%

Weighted Average Interbank Transaction Rate (mid- October 2025)

2.58%

Weighted Average Deposit Rate (mid- October 2025)

3.85%

Weighted Average Lending Rate (mid- October 2025)

7.50%

Average Base Rate of Commercial Banks (mid- October 2025)

5.56%

First Quarter Performance Analysis of Commercial Banks498 As per the unaudited first-quarter results of commercial banks for FY 2025/26 AD (2082/83 BS), operating profit of commercial banks fell by 19.18%, while net profit decreased by 18.78% compared to the same period in previous FY 2024/25 AD (2081/82 BS).

and Prime Commercial Bank with NPR 1.26 billion (USD 44.88 million). Additionally, compared to the same period in the last FY 2024/25 AD (2081/82 BS), Rastriya Banijya Bank saw the most significant year-on-year growth in net profit of 295.72% at NPR 0.60 billion (USD 27.29 million), while NIC Asia Bank recorded a net loss of NPR 220,411.17 (USD 1.17 million).

In the first quarter of FY 2025/26 AD (2082/83 BS), Global IME Bank reported the highest net profit of NPR 1.86 billion (USD 51.61 million), followed by Nabil Bank with NPR 1.76 billion (USD 48.94 million)

In terms of reserves and surplus, Rastriya Banijya Bank led with NPR 38.16 billion (USD 271.32 million), followed by Nepal Investment Mega Bank (NIMB) at NPR 33.90 billion (USD 237.01

million), and Nabil Bank at NPR 32.44 billion (USD 230.99 million).

In total, eight banks surpassed the reserves and surplus industry average of NPR 18.03 billion (USD 125.67 million).

Overall, according to the first quarter data of the current FY 2025/26 AD (2082/83 BS), deposits at commercial banks grew by 14.03%, compared to the corresponding period in FY 2024/25 AD (2081/82 BS).

Global IME Bank mobilized the highest deposits of NPR 582.25 billion (USD 3.99 billion), followed

by Nabil Bank with NPR 556.62 billion (USD 3.80 billion) and

61

34,128,595.00

10,042,368.00

22,581,662.53

10,899,158.07

12,944,694.00

14,917,566.92

12,086,211.56

26,225,861.34

24,346,512.00

14,089,980.19

38,115,853.00

14,769,012.97

19,402,575.72

13,581,525.41

18,366,706.00

23,542,490.00

Nepal Investment Mega Bank

Standard Chartered Bank

Himalayan Bank

Nepal SBI Bank

Everest Bank

NIC Asia Bank

Machhapuchchhre Bank

Kumari Bank

Laxmi Sunrise Bank

Siddhartha Bank

Global IME Bank

Citizen Bank International

Prime Commercial Bank

Sanima Bank

NMB Bank

Prabhu Bank

14,694,022.93

15,637,377.05

19,287,936.30

386,717,105.99

Nepal Bank

Rastriya Banijya Bank

Agriculture Dev. Bank

Total

Public Sector Banks

27,056,997.00

Paid-up Capital (Share Capital)

Nabil Bank

Bank

360,504,109.93

16,846,601.67

38,162,913.69

24,127,278.68

14,556,056.00

12,620,367.00

7,744,809.96

12,345,765.91

8,287,288.76

25,452,353.00

15,017,280.71

18,044,829.00

15,777,006.79

6,683,809.28

20,978,136.68

14,418,883.00

8,643,793.89

24,549,083.91

9,911,923.00

33,896,055.00

32,439,874.00

Reserve & Surplus (Reserves)

6,659,045,536.52

309,377,760.35

528,094,812.96

340,473,311.18

345,176,860.00

290,605,382.00

227,031,374.82

261,753,134.51

212,681,116.60

582,254,603.00

273,243,085.82

375,009,644.00

360,406,645.53

193,541,014.05

337,314,889.67

313,890,276.00

212,979,028.71

315,115,801.32

129,627,210.00

493,851,081.00

5,839,691,756.28

260,101,916.13

415,309,545.55

286,257,070.76

304,038,962.00

246,558,478.00

199,847,454.46

221,813,662.79

191,904,104.47

512,940,584.00

243,298,374.91

334,459,929.00

347,204,528.51

167,784,625.90

336,835,268.73

237,643,891.00

181,286,842.74

326,094,191.33

113,529,218.00

433,327,967.00

479,455,141.00

1st QTR

1st QTR

556,618,505.00

FY 24/25

FY 25/26

Deposit

14.03

18.94

27.16

18.94

13.53

17.86

13.60

18.01

10.83

13.51

12.31

12.12

3.80

15.35

0.14

32.08

17.48

(3.37)

14.18

13.97

16.09

% Change

4,735,125,021.80

212,438,164.38

303,226,495.89

223,785,748.70

227,345,818.00

234,023,130.00

177,560,480.48

214,956,435.77

168,863,110.11

421,252,080.00

217,985,056.40

282,377,407.00

269,418,489.20

148,652,798.38

212,221,805.45

227,345,818.00

138,976,729.43

232,735,984.61

70,117,984.00

330,814,880.00

421,026,606.00

1st QTR

FY 25/26

4,463,473,978.27

201,820,380.78

255,527,806.19

202,544,661.58

222,703,513.00

206,454,551.00

160,886,339.24

188,637,404.96

156,367,271.96

397,358,714.00

200,849,562.21

258,160,033.00

283,964,475.65

138,474,263.23

257,531,729.69

187,606,061.00

128,055,451.77

228,841,432.01

81,955,500.00

324,445,760.00

381,289,067.00

1st QTR

FY 24/25

Loans and Advances

(in 000)

6.09

5.26

18.67

10.49

2.08

13.35

10.36

13.95

7.99

6.01

8.53

9.38

(5.12)

7.35

(17.59)

21.18

8.53

1.70

(14.44)

1.96

10.42

% Change

19,447,804.94

(63,233.73)

852,410.20

917,120.76

1,172,085.00

1,498,463.00

657,617.64

2,075,827.02

(371,855.00)

2,371,636.00

506,092.83

438,172.00

1,424,035.80

598,431.04

193,522.28

1,685,554.00

715,747.51

1,056,623.59

989,377.00

150,292.00

2,579,886.00

1st QTR

FY 25/26

24,062,609.31

298,102.83

213,722.84

690,527.80

1,403,981.00

1,748,681.00

572,104.06

1,828,318.30

282,971.24

2,147,495.00

539,559.70

756,938.00

1,549,706.08

999,885.79

173,865.92

1,611,619.00

1,213,014.64

1,813,075.11

1,231,482.00

2,094,100.00

2,893,459.00

1st QTR

FY 24/25

5,738.89

598,733.31

588,287.50

558,483.00

915,983.00

454,918.15

1,258,430.07

(220,411.17)

1,858,650.00

324,091.37

332,331.00

1,056,531.17

417,956.34

122,160.86

1,179,274.00

501,565.20

702,894.98

692,169.00

45,050.00

1,756,991.00

1st QTR

FY 25/26

190,923.04

151,302.93

602,198.30

1,040,657.00

1,145,603.00

399,530.49

1,286,787.20

198,220.94

1,512,140.00

382,084.74

536,359.00

1,078,177.78

503,263.30

110,526.69

1,127,740.00

814,651.19

726,432.73

862,201.00

1,464,075.00

2,056,590.00

1st QTR

FY 24/25

(18.78)

(96.99)

295.72

(2.31)

(46.33)

(20.04)

13.86

(2.20)

(211.19)

22.92

(15.18)

(38.04)

(2.01)

(16.95)

10.53

4.57

(38.43)

(3.24)

(19.72)

(96.92)

(14.57)

% Change

Net Profit (Profit of the Period)

(19.18) 13,149,827.67 16,189,464.33

(121.21)

298.84

32.81

(16.52)

(14.31)

14.95

13.54

(231.41)

10.44

(6.20)

(42.11)

(8.11)

(40.15)

11.31

4.59

(40.99)

(41.72)

(19.66)

(92.82)

(10.84)

% Change

Operating Profit (Up to this Quarter)

Q1 Analysis of Commercial Banks (2025-26)

Cost of Fund (LCY)

Base Rate (%)

4.86

4.78

3.83

5.49

5.78

4.58

3.91

5.86

6.84

4.98

3.80

5.42

6.98

4.13

6.99

0.74

3.01

7.39

1.71

6.63

4.31

1st QTR

4.04

4.78

4.23

3.95

4.94

3.63

2.94

4.86

5.41

4.67

3.91

5.44

4.96

3.15

4.24

0.77

1.84

4.98

1.95

5.84

4.24

1st QTR

3.98

3.68

3.16

3.46

3.86

4.05

4.32

4.79

4.05

3.92

4.12

4.05

4.29

4.03

4.60

3.61

4.42

4.26

2.89

3.92

4.13

1st QTR

5.42

5.14

4.27

4.61

5.39

5.76

5.64

6.36

5.84

5.50

5.51

5.64

5.75

5.47

6.30

5.09

5.98

6.22

3.49

5.20

5.31

1st QTR

(1.44)

(1.46)

(1.11)

(1.15)

(1.53)

(1.71)

(1.32)

(1.57)

(1.79)

(1.58)

(1.39)

(1.59)

(1.46)

(1.44)

(1.70)

(1.48)

(1.56)

(1.96)

(0.60)

(1.28)

(1.18)

5.61

5.42

4.54

5.16

5.68

5.89

5.59

6.08

5.90

5.40

5.90

5.89

5.82

5.81

6.60

4.88

5.96

6.08

4.27

5.69

5.58

1st QTR

% FY FY FY 25/26 FY 24/25 Change FY 25/26 25/26 24/25

NPL (%)

NEFPORT ISSUE 63 – JANUARY 2026

Rastriya Banijya Bank with NPR 528.09 billion (USD 3.62 billion).

Whereas, Standard Chartered Bank reported the lowest deposits from customers at NPR 129.63 billion (USD 907.34 million).

Contrarily, compared to the same period in the previous FY 2024/25 AD (2081/82 BS), Everest Bank recorded the highest deposit growth of 32.08%, reaching NPR 313.89 billion (USD 2.16 billion).

Total credit growth expanded by 6.09% compared to the same period in the previous FY 2024/25 AD (2081/82 BS). Global IME Bank held the largest loan portfolio of NPR 421.25 billion (USD 2.99 billion), followed by Nabil Bank at NPR 421.03 billion (USD 2.98 billion) and NIMB at NPR 330.81 billion (USD 2.37

billion). Meanwhile, Standard Chartered Bank had the lowest credit disbursement of NPR 70.12 billion (USD 526.35 million).

Lastly, the average NonPerforming Loan (NPL) ratio of commercial banks rose to 4.86% from 4.04% in the same period last FY 2024/25 AD (2081/82 BS), while the average cost of funds declined to 3.98% from 5.42%.

Similarly, the average base rate stood at 6.06% during the review period, down from 8.08% in the same period in FY 2024/25 AD (2081/82 BS). NIC Asia Bank recorded the highest base rate at 6.60%, and Standard Chartered Bank had the lowest at 4.27%.

KEY INDICATORS Some of the key banking sector

indicators as per the Current Macroeconomic and Financial Situation report published by NRB are highlighted below. These are based on the three months’ data of FY 2025/26 AD (2082/83 BS) ending in mid-October of 2025 AD.499 Deposit and Credit Mobilization The deposits at BFIs grew by 3.0% in the review period as compared to 2.6% in the same period last FY 2024/25 AD (2081/82 BS). Among the total number of deposits, demand deposits, saving deposits and fixed deposits accounted for 6.4%, 38.7%, and 46.4% respectively. These proportions have experienced a change compared to a year ago when the respective shares were 5.4%, 32.7%, and 54.8%.

Figure 13. Deposit Mix at Banks and Financial Institutions by mid-October (Percentage Share) Source: Current Macroeconomic and Financial Situation based on three months’ data, Nepal Rastra Bank, FY 2025/26 AD (2082/83 BS)500

Similarly, in the review period, credit provided to the private sector by BFIs witnessed a rise of 1.5%, compared to the corresponding period last year.

This increase contrasts with the three months’ data of FY 2024/25 AD (2081/82 BS), where credit grew by 2.5%.

Additionally, BFIs witnessed an increase in outstanding loans to various sectors. The construction sector witnessed a rise of 2.9%; the transportation, communication and public sector increased 2.4%, industrial production sector increased 2.4%, consumable sector

increased 1.6%, and wholesale and retail sector increased 1.4%, while the service industry sector decreased 0.3%, compared to the three months’ data of last FY 2024/25 AD (2081/82 BS)

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Figure 14. Sectorwise Outstanding Credit of Banks and Financial Institutions (Amount in NPR billions) Source: Current Macroeconomic and Financial Situation based on three months’ data, Nepal Rastra Bank, FY 2025/26 AD (2082/83 BS)501

Compared to the corresponding period of last FY 2024/25 AD (2081/82 BS), real estate loans, including residential personal home loans extended by BFIs increased by 3.2%, followed by margin nature loans at 3.0%, cash credit loans at 2.7%, term loans at 0.7%, and hire purchase loans at 0.6%. On the other hand, trust receipt loans for import loans decreased by 4.3%, while overdraft loans declined by 3.3%.

Liquidity Management In the first three months of FY 2025/26 AD (2082/83 BS), NRB absorbed a total liquidity of NPR 13.08 trillion (USD 178.44 billion) on transaction basis. This liquidity absorption consisted of NPR 714.65 billion (USD 22.73 billion) through the deposit collection auction and NPR 12.36 trillion (USD 155.71 billion) through the Standing Deposit Facility (SDF). In the corresponding period of the previous year, NPR 7.83 trillion (USD 28.02 billion) net

liquidity was absorbed through various instruments of monetary operations.

Moreover, NRB injected liquidity amounting to NPR 262.14 billion through the net purchase of USD 1.86 billion from the foreign exchange market. In comparison, in the corresponding period of the previous year, a liquidity of NPR 196.79 billion was injected through the net purchase of USD 1.47 billion.

Additionally, NRB purchased Indian currency (INR) equivalent to NPR 158.07 billion through the sale of USD 1.12 billion. Comparatively, in the corresponding period last year, INR equivalent to NPR 115.66 billion was purchased through the sale of USD 0.86 billion.

Foreign Exchange Reserves and Adequacy According to the three months’ data of FY 2025/26 AD (2082/83 BS), the total value of foreign

exchange reserves rose by 11.3% to NPR 2.98 trillion (USD 19.40 billion) in mid-October 2025, compared to NPR 2.68 trillion (USD 14.77 billion) in mid-July 2025. Moreover, the reserves held by BFIs, excluding the NRB, increased by 18.7% to NPR 312.10 billion (USD 1.90 billion) in mid-October 2025 from NPR 263.04 billion (USD 1.40 billion) in mid-July 2025. Within this, the proportion of Indian currency in the total reserves amounted to 24% as of mid-October 2025.

NEFPORT ISSUE 63 – JANUARY 2026

FY 2024/25 AD (2081/82 BS) (Mid-July)

FY 2025/26 AD (2082/83 BS) (Mid-October)

In NPR

2.68 trillion

2.98 trillion

In USD

19.50 billion

21.21 billion

Reserves-to-GDP

43.8%

48.8%

Reserves-to-Imports

128.1%

136.6%

Reserves-to-M2

34.1%

36.8%

Total Foreign Reserve

Table 6. Foreign Exchange Adequacy Indicators Source: Current Macroeconomic and Financial Situation based on three months’ data, Nepal Rastra Bank, 2025/26 AD (2082/83 BS)502

Ratios

Additionally, based on the imports of the three months of FY 2025/26 AD (2082/83 BS), the foreign exchange reserves of the banking sector have been deemed sufficient to cover approximately 19.9 months of prospective merchandise imports and 16.4 months of both merchandise and services imports.

Interest Rates The weighted average rate for the 91-day treasury bills declined to 1.91% as of mid-October 2025 AD, compared to 2.96% in the corresponding month of the previous fiscal year. Meanwhile, the weighted average inter-bank transaction rate among BFIs, which was 3.00% a year ago, decreased to 2.58% as of midOctober 2025.

In the same period, the average base rate of commercial banks experienced a decrease, falling from 7.29% a year ago to 5.56% by mid-October 2025.

Furthermore, the weighted average deposit rate and lending rate of commercial banks stood

at 3.85% and 7.50% respectively.

Comparatively, these rates were 5.24% and 9.33% respectively a year ago.

Balance of Payment According to the three months’ data of FY 2025/26 AD (2082/83 BS), ending in mid-October 2025 AD, the BoP was at a surplus of NPR 264.03 billion (USD 1.88 billion), which witnessed an increase of 42.73% compared to the corresponding period of the previous year, where the BoP was at a surplus of NPR 184.99 billion (USD 1.38 billion).

KEY DEVELOPMENTS Government Moves to Reimburse Depositors of Failed Cooperatives The Government of Nepal, through the Ministry of Land Management, Cooperatives and Poverty Alleviation, has drafted a procedure to reimburse savers whose deposits are stuck in troubled cooperatives.503 According to ministry spokesperson, the plan targets depositors with

balances up to NPR 100,000 (USD ), and a revolving fund will be established to channel these refunds. The draft procedure has been forwarded to the Ministry of Finance for approval, before being sent to the Ministry of Law, Justice and Parliamentary Affairs and then the Cabinet for final endorsement.504 The seed capital for the fund will come from the Finance Ministry and proceeds from auctions of failed cooperatives will also feed into the fund to maintain its sustainability.

There are roughly 34,000 cooperatives across Nepal, which operate under multiple layers of registration, making regulation challenging. Many depositors have engaged in campaigns and formed committees demanding both reimbursement of their savings and accountability for cooperative operators involved in mismanagement.505 Nepal Maintains BB– Sovereign Credit Rating Amid Turmoil Nepal has retained its BB– sovereign credit rating from an American credit rating agency - Fitch Ratings Inc, even as the

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country faced political unrest and natural disasters.506 The rating comes with a stable outlook, underscoring Nepal’s resilience despite the youth-led Gen Z protests and the financial fallout from floods and landslides.

Fitch emphasized that Nepal’s economic strengths, especially its strong balance of foreign reserves and continued access to multilateral financing through the IMF, have helped it weather recent shocks.507 The country’s external liquidity is robust, with reserves sufficient to cover more than 16 months of external payments, well above the BB-peer median.

However, Fitch also raised concerns. Political fragmentation following the protests and delays in the election process could weaken governance and derail policymaking.508 Banking sector stress is another issue: non-performing loans are rising, and the protests have triggered significant insurance claims. Fitch remains cautiously optimistic about Nepal’s medium-term growth, citing potential in hydropower development, structural reforms, and jobcreating policies.509

that 16 banks were eligible to distribute profits, NRB’s detailed review suggests that several may be disqualified due to concerns over the accuracy and integrity of their reporting. A key issue is inadequate provisioning. NRB has found that some banks have not set aside sufficient reserves to cover bad loans, despite mandatory provisioning rules ranging from 1% to 100% based on loan risk. This underprovisioning, according to the regulator, artificially inflates profitability and masks the true financial health of banks.511 At the same time, NPLs have surged to an industry average of 4.86%, with some banks reporting ratios as high as 7.39%.512 Himalayan Bank has the highest exposure, while Everest Bank maintains the lowest NPL level. Rising defaults driven by economic slowdown, stressed real estate and SME sectors, and recent political unrest have forced banks to set aside an additional NPR 11 billion (USD )in provisions. Sectorwide profits have already fallen by 18.7%, raising concerns over dividend prospects and overall stability.513

NRB Tightens Scrutiny as Rising Bad Loans Expose Deepening Stress in Banking Sector

NRB Launches Unified National Payment System to Streamline Digital Transactions

Nepal’s banking sector is facing heightened regulatory pressure as the Nepal Rastra Bank (NRB) rejects the financial reports of most commercial banks while non-performing loans (NPLs) continue to rise.

Of the 20 commercial banks, only eight have so far received approval to hold their annual general meetings for FY 2024/25 AD (2081/82 BS).510 Although unaudited statements indicated

NRB has launched the National Payment Switch (NPS) and the National Payment Ecosystem Master Framework 2025, aiming to unify Nepal’s fragmented digital payment landscape into one interoperable network.514 Developed by Nepal Clearing House Limited (NCHL), the NPS will act as the central platform to route, clear, and settle both card-based and noncard transactions, connecting

banks, financial institutions, and payment service providers into a seamless system.515 The new ecosystem features three major components. The Retail Payment Switch will handle real-time non-card payments such as QR transactions, fund transfers, and bill payments. The National Card Switch will process domestic card transactions under the NEPALPAY Card scheme, reducing dependence on foreign networks.516 Additionally, the NPIx Cross-Border Engine will enable instant international transactions, supporting personto-person and merchant payments. All transactions under the NPS will settle through NRB’s Real Time Gross Settlement system, ensuring security and finality. By integrating services like Fonepay, SmartPay, and NepalPAY, the system will eliminate compatibility issues and reduce costs for consumers and merchants. A unified QR code system will also simplify payments for small businesses.

NRB expects the ecosystem to enhance financial inclusion, lower transaction costs, and strengthen Nepal’s digital economy, while emphasizing the need for strong cybersecurity and governance to maintain trust and stability.517 India Opens Rupee Credit to Nepal The Reserve Bank of India (RBI) has amended its policies to permit Indian banks to extend loans in Indian rupees to residents and institutions in Nepal, Sri Lanka, and Bhutan.518 This shift is part of a broader strategy to promote regional financial integration and enhance the use of the rupee in cross-border trade. Under the revised regulations, authorized

NEFPORT ISSUE 63 – JANUARY 2026

Indian banks will support trade settlements by offering rupeedenominated credit to Nepali businesses and individuals.519 For Nepal, this decision could bring significant advantages. Easier access to Indian rupee credit may reduce borrowing costs, especially benefiting small and medium enterprises, and facilitate investment in large-scale projects such as hydropower.520 By tapping into cheaper and

more abundant Indian capital, Nepali firms could better finance cross-border trade. However, the move also presents risks.521 Since the loans must be repaid in Indian rupees, Nepali borrowers face currency exposure: if the rupee appreciates, repayment costs could rise. There is also concern that easier credit could fuel a surge in imports, worsening Nepal’s already large trade deficit with India. Domestic banks in

Nepal may struggle to compete, losing market share as borrowers opt for lower-cost loans from across the border. NRB is reportedly evaluating these implications carefully, balancing the benefits of increased capital access against potential threats to economic sovereignty and financial stability.522

Outlook Nepal’s financial sector remains under pressure, with rising non-performing loans forcing banks to focus on provisioning and asset recovery. NRB’s scrutiny of financial reports highlights ongoing concerns over transparency and risk management, while declining sector-wide profits raise questions about dividends and capital adequacy. At the same time, positive developments are emerging. NRB’s launch of the National Payment Switch (NPS), and the unified digital payment ecosystem is expected to improve transaction efficiency, reduce costs, and boost financial inclusion. Also, India’s new policy allowing rupee-denominated cross-border loans provides Nepali businesses, particularly SMEs and exporters, with cheaper financing and new opportunities for trade and infrastructure investment. However, currency risk and a potential increase in imports pose challenges for domestic banks and policymakers. Overall, abundant liquidity combined with regulatory reforms and improved digital infrastructure offers cautious optimism, but the sector’s stability will rely on political conditions, strong governance, risk management, and coordinated policies.

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Capital Market

FACTSHEET Indicator

During the review period, Nepal’s capital market entered a phase of renewed momentum as coordinated reforms from the Finance Ministry and Nepal Rastra Bank (NRB) began reshaping investor expectations. Building on last quarter’s regulatory enhancements and leadership changes, the government intensified its push for cleaner governance, improved market access, and stronger investor protection. At the same time, NRB lifted several lending restrictions that had previously constrained liquidity in the market, helping revive investor sentiment and support trading volumes.

Index

01-September-2025

Data

NEPSE Index (mid-October, in points)523

2487.18

Stock market capitalization (mid-October)524

NPR 4.16 trillion (USD 33.73 billion)

Number of companies listed at NEPSE (midOctober)525

276

30-November-2025

% Change

Main Indices NEPSE

2,761.86

2,749.83

2.05

Sensitive

476.38

472.64

2.53

Float Index

189.10

187.91

2.09

Sub-Indices

Table 7. Key Market Indicators Source: Nepal Stock Exchange526

Banking

1,448.72

1,427.31

1.10

Development Banking

5,779.49

5,749.12

2.91

Finance

2,420.00

2,416.62

0.63

Microfinance

5,116.31

5,102.39

5.75

Hydropower

3,510.63

3,507.82

1.42

Hotels and Tourism

6,995.17

6,964.70

0.20

Manufacturing and Processing

7,546.44

7,518.69

3.59

Life Insurance

12,930.66

12,930.07

-2.29

Non-Life Insurance

12,416.93

12,379.73

-0.09

Trading

4,101.58

4,137.03

-4.46

Mutual Funds

20.39

20.36

6.37

Investment

110.45

110.24

-2.80

2,679.60

2,680.57

14.00

Others

NEFPORT ISSUE 63 – JANUARY 2026

Secondary Market During the review period from September 1 to November 30, 2025, the NEPSE index closed at 2,749.83 points, reflecting a rise of 55.17 points (2.05%) from the opening level of 2,761.86 points, with a peak on July 29, 2025, at 3,002.07 points. The total market capitalization at the end of the period stood at NPR 4.60 trillion (USD 33.30 billion). Among the main indices, the Sensitive index fell slightly to 472.64 points, while

the Float Index closed at 187.91 points, reflecting gains of 2.53% and 2.09%, respectively.

In the sub-indices, Banking rose by 1.10% to 1,427.31 points, Development Banking by 2.91% to 5,749.12 points, Finance by 0.63% to 2,416.62 points, Microfinance by 5.75% to 5,102.39 points, Hydropower by 1.42% to 3,507.82 points, Hotels and Tourism by 0.20% to 6,964.70 points, Manufacturing and Processing by 3.59% to 7,518.69 points, Mutual

Funds by 6.37% to 20.36 points, and Others by 14.00% to 2,680.57 points. In contrast, Life Insurance decreased by 2.29% to 12,930.07 points, Non-Life Insurance by 0.09% to 12,379.73 points, Trading by 4.46% to 4,137.03 points, and Investment by 2.80% to 110.24 points. Figure 9 shows the daily changes of the NEPSE index during the review period.

Figure 15. NEPSE Movement Over the Review Period Source: Nepal Stock Exchange (NEPSE)527

KEY DEVELOPMENTS SEBON Introduces 10th Amendment to Securities Issuance and Allotment Guidelines The Securities Board of Nepal (SEBON) has adopted the 10th Amendment to the Securities Issuance and Allotment Guidelines 2082, marking a key shift in the regulatory framework governing how companies issue and allocate securities.528 Among the central changes, the amendment introduces more

rigorous disclosures for issuers, tighter timeframes for public subscription and allotment, and enhanced protections for institutional investors.

Additionally, categories of securities, such as perpetual noncumulative preference shares, are now subject to explicit issuance criteria, including minimum issue size and investor eligibility requirements.529 The amendment also clarifies the responsibilities of issue-managers and intermediaries to submit allotment schedules ahead of allocation and strengthens

safeguards for collections and investor applications. For companies planning IPOs, right issues or other securities issuance, the updated guidelines require stricter compliance with subscription periods, more transparent allotment processes, and improved documentation standards.530 NRB Proposes Faster Promoter Share Transfers to Speed Up Banking Investment The Nepal Rastra Bank (NRB) is reviewing its stringent rules

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governing the transfer of promoter (founder) shares in banks and financial institutions to address long-standing delays faced by investors. Currently, a transfer process that requires board approval, lengthy public notices, and NRB consent can take over three months and even more in some cases.531 Regulators say this complex procedure has discouraged investment and reduced market liquidity. An example of the problem, Pakistan’s Habib Bank Limited took more than four months to sell its 12.93% stake in Himalayan Bank, highlighting the bureaucratic hurdles involved. NRB plans to delegate many of the administrative tasks, like processing share transfers to individual banks themselves, allowing company secretaries to approve certain deals without needing central bank permission.532 Under the proposed changes, the timeline for selling promoter shares could shrink from several months to just one or two weeks. The reforms also aim to harmonize the existing dual-share structure (promoter vs. public) to improve fairness and ease transfers.533 Government Forms Committee to Restructure Nepal Stock Exchange (NEPSE) The Government of Nepal established a five-member task force to propose reforms for restructuring the Nepal Stock Exchange (NEPSE). The committee is chaired by Prakash Jung Thapa, ex-chairperson of the Accounting Standards Board, with key representation from the Ministry of Finance, Nepal Rastra Bank (NRB), SEBON, and NEPSE itself.534 The panel has a strict timeline of 50 days to submit

its recommendations, signaling the government’s urgency to modernize Nepal’s only stock exchange. Restructuring NEPSE has long been debated, but previous efforts have stalled.535 The move aligns with earlier proposals from a high-level economic reform commission, which recommended partial divestment of NEPSE’s government-held shares to attract private sector involvement.

Currently, the government owns over 58% of NEPSE, limiting its independence and competitive dynamics.536 SEBON Staff Strike Halts NPR 80 Billion (USD 566 million) Capital Market Issuance A prolonged strike by employees of SEBON has halted all public issuance activities, including IPOs, rights shares, debentures, and mutual funds. As a result, regulatory approval for around 99 companies remains pending, with the total value of stalled issuances reaching approximately NPR 80 billion (USD 566 million). Many firms prepared to float new securities are now facing significant delays.

The strike began after the Ministry of Finance instructed SEBON staff to repay loans and benefits they had received from the institution’s welfare fund, arguing that the fund was established in violation of government rules and SEBON’s internal regulations. In protest, SEBON employees are demanding regulatory autonomy, the reversal of the repayment order, and the resignation of SEBON Chairman Santosh Narayan Shrestha, whom they have prevented from entering the office. With most of SEBON’s operations disrupted, the regulator has not approved a

single public issuance application since early September. SEBON’s board has been holding discussions with the Ministry of Finance and is also exploring legal measures, including court action, to challenge the government’s recovery directive and protect its institutional independence.

Share-Backed Loans Climb to NPR 144.95 Billion (USD 1.03 billion) in Q1 In the first quarter of the current FY 2025/26 AD (2082/83 BS), banks and financial institutions in Nepal increased their lending against shares, known as margin loans, to NPR 144.95 billion (USD 1.03 billion).537 This represents a 3.02% rise over three months. The growth is supported by abundant liquidity in the banking system and falling interest rates, which have made share-backed lending more appealing to investors.

Loans in the NPR 5 to 10 million (USD 35,360 to 70,720) range grew the most, rising by 10.48%, while smaller loans up to NPR 2.5 million (USD 17,686) increased by 3.09%.538 This indicates that both institutional and retail investors are actively using share collateral to access credit. However, some bankers note that despite the rise in margin lending, borrowing from the productive sector remains weak due to subdued business sentiment.539 The continued expansion of sharebacked loans reflects investors’ search for better returns at a time when traditional lending remains sluggish. While this provides a channel to utilize excess liquidity, it also highlights the need for careful oversight to prevent undue risk buildup in the capital market.540

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Outlook Nepal’s capital market shows mixed signals this quarter. SEBON’s 10th Amendment aims to strengthen governance, improve disclosures, and accelerate IPOs and rights issues, while NRB’s proposed easing of promoter share transfers could enhance liquidity and encourage investment in banks. The government’s task force to restructure NEPSE underscores ongoing efforts to modernize the exchange and reduce state dominance. However, the SEBON staff strike has stalled numerous planned issuances, creating uncertainty for investors and delaying capital market activity. Meanwhile, rising share-backed loans indicate that abundant liquidity is being channeled into the stock market rather than productive sectors, raising concerns about speculative risk and market volatility. These developments suggest that while regulatory reforms and restructuring efforts may improve transparency and efficiency over the long term, immediate challenges from administrative disruptions and excessive reliance on margin lending could destabilize market confidence. Careful oversight, timely resolution of strikes, favorable political conditions and strengthened risk management will be crucial to maintain stability and ensure that reforms translate into sustainable growth.

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5

Special Section Artificial Intelligence in Nepal: Charting the Next Frontier

Introduction Artificial Intelligence (AI) is rapidly reshaping global economic structures, governance systems, and competitive advantage, and its implications for developing economies are becoming increasingly consequential. Across Asia and the Indo-Pacific, 2026 is emerging as a pivotal year for technology governance, marked by intensifying regulatory activity, shifting supply chains, and heightened attention to digital sovereignty. For Nepal, these global shifts coincide with a critical domestic moment. As AI adoption accelerates across sectors, the country faces the fundamental question of whether it will position itself as an active shaper of its digital future or remain dependent on external technologies and infrastructures.

While AI presents opportunities to enhance public service delivery, improve productivity, and enable technological leapfrogging, Nepal’s current readiness remains limited. Structural constraints related to data governance, computing infrastructure, regulatory capacity, and human capital risk constraining the country’s ability to translate AI ambition into tangible outcomes. At the same time, regional and global developments in AI regulation, cybersecurity, online safety, and digital trade are redefining the policy environment in which Nepali institutions and firms must operate. Understanding these intersecting global and domestic dynamics is therefore essential for informed policymaking and private-sector strategy.

Recognizing the urgency of this moment, this Special Section of NEFport 63 brings together perspectives from global policy analysis, industry leadership, and technical expertise to examine Nepal’s AI trajectory within a rapidly evolving regional and international context. The three articles collectively explore regulatory trends shaping the digital economy, assess Nepal’s institutional and infrastructural readiness for AI adoption, and interrogate the longer-term risks of technological dependency. Together, they provide a multidimensional assessment of what it will take for Nepal to harness AI in a manner that is inclusive, secure, and economically sustainable.

•

‘Tech in 2026: AI Investment, Regulatory Impacts and Supply Chain Resilience’ by Bower Group Asia situates AI within broader Indo-Pacific technology trends, examining shifting trade dynamics, emerging online safety regulations, tightening cybersecurity regimes, and evolving data infrastructure requirements, while highlighting how regulatory fragmentation and supply chain realignments will shape investment decisions in 2026.

•

‘Building AI Readiness: Capacity, Infrastructure, and Collaboration’ by Parag Shrestha (Managing Director and Head of Strategy, Fusemachines) evaluates Nepal’s current AI readiness, focusing on public service delivery, data protection frameworks, digital infrastructure, and talent development, and underscores the importance of coordinated action between government, industry, and academia to translate policy intent into implementation.

•

‘Nepal’s AI Future: A Choice Between Sovereignty and Dependency’ by Pratyush Acharya (Data Scientist, SecurityPal AI) offers a critical examination of the structural risks Nepal faces as an AI consumer economy, highlighting challenges related to language data scarcity, computing infrastructure, foreign currency dependence, and talent migration, while calling for strategic investment in local data, green computing, and procurement reform.

Taken together, the articles in this Special Section argue that Nepal’s AI future will be determined not by access to technology alone, but by deliberate choices around governance, investment, and institutional capacity. As AI becomes increasingly embedded in economic and administrative systems, the window for shaping a sovereign, resilient, and locally grounded digital ecosystem is narrowing, making timely and coordinated action imperative.

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Tech in 2026: AI Investment, Regulatory Impacts and Supply Chain Resilience By Bower Group Asia The Indo-Pacific enters 2026 amid intensifying trade and regulatory shifts. The technology prosperity deals the United States negotiated with Japan and Korea along with new rare earth partnerships across Southeast Asia aim to build resilience in advanced technology supply chains. Yet, the outcome of the U.S. Section 232 semiconductor investigation could disrupt momentum. US tariffs could reshape global production networks and complicate cooperation with key partners.

dark patterns, reflecting a focus on accountability and trust.

The region is moving toward stricter enforcement and greater transparency in the digital ecosystem.

On The Horizon:

Online safety regulation is gathering pace as governments move from reactive takedowns to proactive platform governance.

Australia’s ban on social media for minors has spurred similar moves in Singapore, Indonesia, and Malaysia. The new frameworks emphasize age assurance, transparency, and platform accountability, creating both compliance risks and openings for companies to shape safer, youth-focused digital spaces.

India’s AI Impact Summit, set for February 19-20, 2026, will be a key moment for global and regional dialogue on responsible AI. The summit aims to position India as a leader in trusted and inclusive AI. The Philippines, as chair of the Association of Southeast Asian Nations (ASEAN) in 2026, is expected to highlight AI governance and digital cooperation as part of its agenda.

The president reaffirmed support for a common ASEAN framework on responsible AI anchored in inclusivity, sustainability and competitiveness. AI is poised to feature prominently in the Philippines’ digital priorities, reflecting Asia’s growing influence in shaping region-led, responsible AI and digital governance.

Cybersecurity, data infrastructure and digital consumer protection are core priorities in Asia’s 2026 regulatory agenda.

Governments are tightening cyber and data-center rules while expanding scrutiny of artificial intelligence (AI)-driven

The delayed ASEAN Digital Economy Framework Agreement (DEFA) is expected to be signed in 2026. DEFA will set forward-looking rules for crossborder data flows, digital trade, e-commerce, digital payments and digital identity.

The agreement aims to build a more seamless and trusted regional digital marketplace, enabling businesses to innovate and expand across borders with greater certainty and interoperability.

SECTORAL OVERVIEW AND FORECAST Macro-Trend Monitor Section 232 Investigations and Semiconductors The latter half of 2025 saw a marked acceleration in technology-focused trade agreements and strategic partnerships driven by the United States across the Indo-Pacific, in contrast to the disruptive agenda the administration of U.S. President Donald Trump deployed in the first half of the year. In October, building on the trade deals with countries that included provisions on the digital economy, the United States finalized technology prosperity deals with Japan and Korea to align industrial policy and regulatory standards among the United States, Japan and Korea, with the explicit aim of strengthening supply chains for advanced technology components. The deals follow significant public sector-organized private investment, with Japanese firms

NEFPORT ISSUE 63 – JANUARY 2026

pledging up to USD 550 billion in US investments and Korea reaffirming its USD 350 billion commitment, alongside major U.S. commercial investments across Asia. The United States also established rare earth element supply chain partnerships with Japan, Malaysia, Thailand, and Australia, signaling a broader push for resilience and diversification away from China across the technology supply chain.

Looking ahead, the ongoing US Section 232 investigation into semiconductor imports is poised to shape the next phase of tech trade policy. Should the investigation conclude that foreign semiconductor imports threaten its national security, the United States may impose new tariffs or restrictions, further incentivizing domestic manufacturing and reshaping global supply chains. Such tariffs would significantly and negatively impact US-China trade negotiations under the recently announced framework agreement in addition to US collaboration with Taiwan, Japan, Korea and Malaysia. However, recent diplomatic overtures, including easing certain semiconductor restrictions, to reach that framework agreement with China suggest that a more nuanced approach will emerge.

A more collaborative approach will help continue the trend of regulatory harmonization with key allies on global AI standards, encourage trade and investment promotion and increase opportunities for advanced technology research collaboration. Investors should look to the February AI Summit in India as a major signpost

following any announcement of the Section 232 investigation outcomes.

Online Safety Regulations Gathering Pace The first half of 2026 is set to feature rapid acceleration in online safety regulation across the Indo-Pacific and globally, with governments enacting increasingly stringent frameworks to protect children and address digital harms. Australia, the European Union, and the United Kingdom continue to set the pace with landmark legislation such as the Social Media Minimum Age Act, the Digital Services Act, and the Online Safety Act, respectively. These models are prompting policy contagion as regulators in the Indo-Pacific emulate or selectively adopt similar provisions. The regulatory landscape is shifting from reactive content takedowns to proactive platform safety, with a marked emphasis on age assurance, platform liability and transparency.

However, the effectiveness of these laws remains under scrutiny as users seek ways to circumvent restrictions, raising questions about the real-world impact of regulatory interventions.

For technology companies, the evolving definitions of regulated platforms, exemptions, and digital duty of care present both compliance challenges and advocacy opportunities.

The region’s regulatory regimes are increasingly varied in their legal definitions. Age-verification mechanisms, mandatory risk assessments and rapid content takedown requirements are increasing. At the same time,

there is a growing opportunity to shape youth-centric digital communities by prioritizing child safety and ethical AI. Looking ahead, technology sector leaders should anticipate heightened scrutiny and regulatory obligations, particularly in markets like Australia, Indonesia, Malaysia, Thailand and Vietnam. Global platforms are advised to closely monitor legislative developments, conduct local impact assessments and enhance safety features tailored to national priorities.

SUBSECTOR HIGHLIGHT Tightening the Cybersecurity Regime The cybersecurity environment is entering a new phase of regulatory tightening in 2026.

After several years of capacity building and voluntary standards, governments are now shifting toward direct enforcement and measurable accountability.

Breach reporting, serviceprovider licensing and realtime disclosure are becoming legal obligations rather than recommendations. The next stage of regulation will focus on the protection of critical digital infrastructure, elevating cyber incidents to national security risks and formalizing board-level liability for failures in oversight and response.

This shift is also intertwined with Asia’s growing emphasis on digital sovereignty. The exposure of UNC3886, a statelinked espionage group that exploited virtualization software to infiltrate networks, illustrates how vulnerabilities in trusted

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technologies can undermine entire sectors. Across the region, governments are tightening vendor-assurance frameworks, reassessing supply chain dependencies and setting new standards for trusted cloud and data infrastructure providers. Cybersecurity policy is increasingly becoming a core instrument of industrial and national security strategy, where the right to operate hinges on the ability to demonstrate technological trustworthiness.

At the same time, the expanding threat environment driven by AI and emerging technologies is pushing policymakers to rethink resilience. Governments are moving to integrate AI model integrity, algorithmic transparency and deepfake detection into cybersecurity and digital trust governance.

Quantum-safe encryption standards and cryptographic migration plans are also gaining prominence. These developments signal a fundamental redefinition of cybersecurity: from defending networks to ensuring the verifiability and control of critical algorithms and data assets.

Regional coordination is expected to deepen as the scale and sophistication of attacks outpace national boundaries. ASEAN and its partners are working toward interoperable reporting protocols and shared threat-intelligence exchanges, recognizing that a coordinated response will be key to managing systemic risks. Yet, even as cooperation strengthens, domestic enforcement will harden. Regulators are expanding investigative powers, imposing fines for concealment and demanding verifiable evidence of

resilience from critical operators.

The horizon for 2026 points to a more assertive, sovereigntycentered, and enforcementdriven cybersecurity order across the Indo-Pacific — one defined by accountability, trusted technology and the hardening of digital infrastructure.

Regulatory Action on Dark Patterns on the Rise Dark patterns, i.e. digital interface design tactics that manipulate user behavior, are poised to be front of mind for market regulators in the first half of 2026. This is particularly true as AI-driven adaptive, personalized interfaces supercharge these patterns at scale. Governments are already responding unevenly: the EU embeds dark pattern restrictions in its Digital Services Act and broader online fairness rules.

In the Indo-Pacific, competition authorities are taking the lead. Singapore’s Competition and Consumer Commission has issued guidelines targeting deceptive design practices and Malaysia’s Competition Commission has finalized a market review of the digital economy ecosystem highlighting dark patterns as an area of concern. The Korea Fair Trade Commission and India’s Competition Commission are actively investigating platforms for exploitative user interfaces.

These early signs of diverging approaches signal that the compliance landscape will vary depending on the enforcement stakeholders.

Regulatory scrutiny will likely intensify as policymakers link dark patterns to consumer harm, data protection and

ethical AI. In Australia, India, Japan, Malaysia, Korea and Singapore, regulators have begun reviews of online platforms by their respective competition watchdogs. Upcoming platform legislation in these jurisdictions, like the implementation of India’s Digital Personal Data Protection Act, will incorporate redressal mechanisms for dark patterns in online platforms. Businesses should prepare for design audits and potential penalties across multiple jurisdictions as regulatory attention intensifies.

Data Center Growth Continues The Indo-Pacific data center sector is set for strong growth in early 2026, fueled by demand for AI, cloud services and digital transformation. India, Indonesia, Thailand, and the Philippines are expanding quickly, helped by government incentives, infrastructure upgrades and a young workforce. Meanwhile, Singapore, Malaysia, and Japan are strengthening their roles as regional hubs, offering clear regulations and advanced infrastructure, but they also face rising pressure on land, energy and water, driving innovation in design, and sustainability.

For the first half of 2026, energy sourcing, sustainability and government incentives will continue to shape investment strategies.

Most countries have ambitious renewable energy goals, but fossil fuels still dominate, and grid modernization is uneven. Power purchase agreements and direct renewable sourcing are becoming more common in the region, though regulatory complexity and infrastructure bottlenecks

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continue to slow progress. Water scarcity and urban congestion are pushing operators to build more resource-efficient facilities and diversify locations. Governments increasingly see data centers as critical infrastructure, but policy uncertainty and slow permitting continue to delay projects. Operators that lead in grid reliability, sustainability and

local engagement will be best positioned for growth.

Overall, the Indo-Pacific data center market in the first half of 2026 will be shaped by digital demand, energy transition and evolving regulations. Investors and operators should expect more scrutiny on environmental impact, tougher competition

for renewable energy and a premium on operational resilience. Strategic priorities include mapping regulatory environments, investing in energy and water efficiency and building flexible engagement strategies with governments.

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Building AI Readiness: Capacity, Infrastructure, and Collaboration Parag Shrestha

Managing Director and Head of Strategy, Fusemachines

Nepal stands at an important crossroad where Artificial Intelligence (AI) has the potential to reshape the country’s technological narrative. AI might just prove to be the catalyst that can help narrow Nepal’s longstanding developmental gaps.

With a rapidly growing talent base, we’re now in a favorable position to lead our own technological leap. However, for all of that to happen, a lot of foundational work needs to be done.

According to the World Economic Forum, “Ambition in AI needs to be supported by the right infrastructures or it will just remain a goal without real tangible results. Rules and regulations for AI must evolve together with the innovations they aim to guide.” This article focuses on two main areas. First, it examines how Artificial Intelligence can accelerate public service delivery in Nepal, assessing the country’s current policies and readiness for AI. Second, it highlights the steps that are required to make sure that AI is adopted transparently, accountably, and sustainably across all sectors. It's now time for Nepal to establish the right infrastructure and frameworks to turn AI from aspiration into impactful action.

AI for Public Service Delivery and Governance Transformation Nepal is still at the nascent stage when it comes to rules and regulations related to data and AI. Although there are few basic laws around digital transactions and cybercrime, we still don’t have dedicated AI-specific guidelines in place. If we have a clear set of legal guidelines, it would help ensure that the tech companies will build AI systems that are fair, transparent, and also respect user privacy.

What Nepal truly needs now is a strong Data Protection law. This law should clearly define what personal data is, set rules for taking consent before using it, and guide setting up an independent authority to monitor how data is handled. Additionally, having AI-specific guidelines based on global best practices would also help companies assess risks, reduce bias in algorithms, and be more transparent about how AI decisions are made. These steps would not only protect users but also support companies in building trustworthy AI solutions.

As all of us are aware and have experienced in some capacity, the slow service delivery time and bureaucratic inefficiencies

are two main factors that are dragging Nepal behind when it comes to governance. Enter AI, these long-standing challenges can be solved effectively by automating repetitive tasks such as content extraction, identification, forecasting, fraud detection, flexible deployment, and scalability. AI algorithms and machine learning models will help the government optimize task performance and can be tailored to the specific needs of various government bodies.

However, we still have a long way to go. According to Oxford Insights’ Government’s AI Readiness Index 2024, Nepal ranks 150th on AI readiness. This highlights the urgent need for the government to come up with policies and a regulatory framework, capacity building, digital infrastructure, and strategic adoptions of AI across sectors.

Policy and Regulatory Frameworks for AI in Nepal Nepal's low AI readiness ranking already highlights the fact that institutional and policy support are just as important to foster innovation and prosperity in the country. Recognizing this, Nepal has recently taken proactive steps to assist domestic businesses in expanding internationally.

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The Foreign Investment and Technology Transfer Act has recently been amended to allow IT companies to open branches abroad and return profits through official banking channels.

Additionally, Nepal Rastra Bank has also streamlined approvals, so businesses can move quickly on international opportunities.

In August 2025, the Government of Nepal officially approved the National AI Policy 2082, marking a major milestone in the country’s digital transformation journey. The policy is designed to guide the ethical, transparent, and inclusive development and deployment of artificial intelligence (AI) across various sectors of society. The policy does lay the foundation for a future where AI can be leveraged properly in Nepal to enhance the public services, support innovation, and strengthen Nepal’s digital economy. The government is making efforts, but it is also true that there is still a long way ahead for us to

reach the mark where innovation meets proper governance and regulations.

The approval of the policy is only the first step. Only policy alone cannot guarantee progress. For meaningful change, implementation of the policy as well as strengthening of the systems and capacities to support the AI development are equally important.

AI Readiness Infrastructure Although the Nepali government ranks 150th on AI readiness, it doesn’t mean that there is a lack of professional and individual talent within the country. Skilled AI professionals are highly valued in the global market. Tech companies have always been working to ensure that talent from frontier markets like Nepal is part of the demanded AI talent pool and is upskilled to compete on a global scale.

For example, in 2017, Fusemachines launched an AI

Fellowship Program and has already trained over 1000 people.

Building on our efforts, we gave continuation to democratizing AI education by launching our AI Shikshya for Nepal initiative, which offered both introductory and advanced level courses in AI, ensuring students have the proper access to the skills and knowledge that are constantly in demand.

But this alone is not enough to sustain the need for more talented professionals.

As mentioned earlier, policies, infrastructures, strategic collaboration opportunities and partnerships between government, industries, and academia are equally important for Nepal to thrive in this AI revolution. This will actually help Nepal leapfrog into a new era and create a sustainable ecosystem that supports and accelerates Nepal’s overall development.

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Nepal’s AI Future: A Choice Between Sovereignty and Dependency Pratyush Acharya Data Scientist, SecurityPal AI

The world is currently going through a massive change because of Artificial Intelligence (AI). Everywhere we look, from news feeds to business reports, people are talking about how AI will change everything. For a developing country like Nepal, this sounds like a great promise.

We hope that technology can help us skip over the difficult steps of development that other countries had to go through.

However, as we stand in late 2025, we must be honest with ourselves. There is a very big gap between our dreams and our reality. While we are busy using Facebook and TikTok, we are not actually building the technology ourselves. We are becoming a nation of digital consumers, not creators.

The first major barrier is our language. In the global tech world, data is often compared to oil. If that is true, Nepal has the crude oil as we have millions of people speaking and writing, but we do not have the refineries to make it useful. The big AI models like GPT-4 are mostly trained on English. They do not understand the Nepali language well. I have seen this problem firsthand.

When we try to use these global models for Nepali, they struggle.

They do not understand our culture or the respectful ways we speak to elders (like using hajur or tapai). Even worse, they often "hallucinate," which means they confidently make up facts that are completely wrong. We cannot use such unreliable systems in our banks or hospitals.

This distinction is important.

If we do not change our path, Nepal risks becoming a "data colony." This means we will keep importing AI tools from big foreign companies, paying them with our money and our personal data, while our own engineers leave the country. To stop this from happening, we need to look past the hype and fix three deep problems: our lack of data, our lack of computing power, and the loss of our best talent.

There is also a hidden cost that many people do not talk about, which we can call the "Tokenization Tax." The computer programs that read text are built for English. When they read Nepali script, they are very inefficient. A single Nepali word might be broken into three or four pieces by the computer. Since AI companies charge money based on these pieces (tokens), it costs a Nepali developer three times more to build an app than it costs

an American developer. This is an unfair economic burden on our local startups.

Even if we solve the data problem, we face a second hurdle: we have nowhere to run these powerful programs. AI requires massive computing power, which is very expensive. Nepal does not have its own commercial data centers with the necessary high-speed chips (GPUs).

Because of this, our startups are forced to rent computers from foreign giants like Amazon (AWS) or Google. This creates a serious economic problem. Our companies earn in Nepali Rupees, but they have to pay their server bills in US dollars. Every time the dollar gets stronger, our businesses lose money. We are sending our scarce foreign currency out of the country just to keep our servers running.

This is ironic because Nepal has a surplus of electricity from our hydropower projects. We talk about selling electricity to India while we should be using it here.

We could build "Green Compute" centers, data centers powered by clean energy. This would attract international companies who want to reduce their carbon footprint. But to do this, we need

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a reliable power grid that never shuts down and better internet connections to the outside world. Right now, we are missing this opportunity.

Perhaps the saddest challenge is the human one. Nepal produces thousands of engineering graduates every year. They are bright and eager to learn. However, our industry suffers from what I call the "Hollow Middle." We have many junior engineers who are just starting, and we have a few bosses at the top. But we are missing the people in the middle, the seniors with five or six years of experience who can lead projects and teach the juniors.

Why? Because they all leave. As soon as an engineer gets good experience, they migrate to the US, Europe, or Australia for better pay and a better life.

This "brain drain" is killing our ability to innovate. You cannot build complex, long-term projects if your best team members leave every two years. We are left with a workforce that knows the theory of AI from university but lacks the

practical experience to build real products.

The government has finally realized these issues. The new National Artificial Intelligence Policy 2082 is a good start. It recognizes the dangers of AI, like deepfakes, and sets big goals for the future. But a policy is just a piece of paper if it is not acted upon.

The biggest practical problem is how the government buys things. Our public procurement laws are designed to build roads and bridges, where you always choose the lowest bidder. This does not work for software. If the government buys the cheapest AI system, it will get a bad system.

We need new rules that allow the government to buy quality technology from local startups, even if it costs a little more.

Despite all these challenges, I remain hopeful because of our entrepreneurs. Our startups are adapting. Instead of trying to build massive models like ChatGPT, which costs millions, they are

building smart, specific tools.

They are using a technique called Retrieval-Augmented Generation (RAG), which connects AI to local documents like Nepal’s laws or banking rules. This makes the AI accurate and useful for our specific needs.

We are at a crossroads. We can continue as we are, watching the AI revolution from the sidelines and paying foreign companies for their tools. Or we can decide to take control. To take control, the government must stop just writing policies and start investing in local data centers. We need to create an environment where senior engineers want to stay in Nepal. And our businesses need to work together to share data and build systems that solve Nepali problems. The technology is global, but the solutions must be local. If we do not build our own AI future, someone else will build it for us, and we might not like the result.

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Endnotes 1 Nepal Development Update: Reforms to Accelerate Public Investment, World Bank, November 1, 2025, https:// documents.worldbank.org/en/publication/documents-reports/ documentdetail/099548411112541261

Human Development Report 2025, UNDP, May 6, 2025, https://hdr.undp.org/content/human-development-report-2025 2

3 Current Macroeconomic and Financial Situation (Based on four months data of 2025/26), Nepal Rastra Bank, December 15, 2025, https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2082-83&subcategory=four-months

gaming app Discord to pick PM,” Al Jazeera, September 15, 2025, https:// www.aljazeera.com/news/2025/9/15/more-egalitarian-how-nepals-genz-used-gaming-app-discord-to-pick-pm 18 Anil Giri, “Nepal appoints Sushila Karki as first female executive head,” The Kathmandu Post, September 13, 2025, https://kathmandupost. com/politics/2025/09/13/nepal-appoints-sushila-karki-as-first-femaleexecutive-head ; “President dissolves House of Representatives, next election on March 5, 2026,” The Rising Nepal, September 13, 2025, https:// risingnepaldaily.com/news/68229

4

19 Government of Nepal, “Council of Ministers,” Office of Prime Minister and Council of Ministers, Accessed on January 3, 2026, https:// opmcm.gov.np/pages/ministers-pages/

https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2081-82&subcategory=annual

20 “Constitutional bench formed to hear house dissolution case,” Online Khabar, October 29, 2025, https://english.onlinekhabar.com/ constitutional-bench-formed-to-hear-house-dissolution-case.html

Current Macroeconomic and Financial Situation (Based on Annual Data of 2024/25), Nepal Rastra Bank, August 24, 2025,

5 “Democracy Index,” Economist Intelligence Unit, Accessed on January 2026 ,3, https://www.eiu.com/n/global-themes/democracyindex/ 6 “Nepal: Freedom in the World 2024 Country Report,” Freedom House, Accessed on January 2026 ,3, https://freedomhouse.org/country/ nepal/freedom-world/2024.

7 “Nepal,” Reporters Without Borders, Accessed on January ,3 2026, https://rsf.org/en/country/nepal.

8 “Index of Economic Freedom: All Country Scores,” The Heritage Foundation, Accessed on January 2025 ,3, https://www.heritage. org/index/pages/all-country-scores 9 “Fragile States Index: Country Dashboard,” The Fund for Peace, Accessed on January 2026 ,3, https://fragilestatesindex.org/countrydata/.

10 “2024 Corruption Perceptions Index,” Transparency International, Accessed on January 2026 ,3, https://www.transparency. org/en/cpi/2024/index/npl.

11 Daya Dudraj, “Nepo kid trend sparks anti-corruption campaign in Nepal,” The Kathmandu Post, September 6, 2025, https:// kathmandupost.com/national/2025/09/06/nepo-kid-trend-sparksanti-corruption-campaign-in-nepal ; Sajana Baral, “Nepal bans Facebook and other major social media platforms over non-compliance,” The Kathmandu Post, September 4, 2025, https://kathmandupost.com/ national/2025/09/04/nepal-bans-facebook-and-other-major-socialmedia-platforms-over-non-compliance 12 Sushim Thapaliya, “A social media timeline of Nepal’s Gen Z uprising,” Himal Southasian, https://www.himalmag.com/reportage/nepalgenz-protests-timeline-discord-social-media 13 “Home Minister Ramesh Lekhak resigns,” The Kathmandu Post, September 8, 2025, https://kathmandupost.com/national/2025/09/08/home-ministerramesh-lekhak-resigns ; “Nepal lifts social media ban after 19 killed in protests against corruption,” Al Jazeera, September 9, 2025, https://www. aljazeera.com/news/2025/9/9/nepal-lifts-social-media-ban-after-19killed-in-protests-report 14 Roman Gautam, “Nepal’s horrific reckoning with its failed political class,” Himal Southasian, September 10, 2025, https://www. himalmag.com/politics/nepal-gen-z-uprising-oli-resignation 15 “Nepali Army deploys its troops on the streets,” The Kathmandu Post, September 10, 2025, https://kathmandupost.com/ opinion/2025/09/10/nepali-army-deploys-its-troops-on-the-streets 16 “45 who died in Gen Z movement declared martyrs,” The Kathmandu Post, November 4, 2025, https://kathmandupost.com/ national/2025/11/04/45-who-died-in-gen-z-movement-declaredmartyrs 17

Samik Kharel, “‘More egalitarian’: How Nepal’s Gen Z used

21 “Writ petitions surge in SC against interim government and house dissolution,” Online Khabar, October 14, 2025, https://english. onlinekhabar.com/writ-against-interim-government.html 22 “Court declines interim order on government formation and House dissolution case,” The Kathmandu Post, October 29, 2025, https:// kathmandupost.com/national/2025/10/29/court-declines-interim-orderon-government-formation-and-house-dissolution-case 23 Purushottam Khatri, “Panel formed to probe excesses during Gen-Z protests,” The Rising Nepal, September 22, 2025, https:// risingnepaldaily.com/news/68654 24 “High-level inquiry seeks extra month to probe Gen Z protest crackdown,” The Kathmandu Post, December 17, 2025, https:// kathmandupost.com/national/2025/12/17/inquiry-commission-seeksextra-month-to-probe-gen-z-protest-crackdown 25 Government of Nepal, “Voter List (First Amendment) Ordinance, 2082,” National Assembly, Nepal, October 10, 2025, https:// na.parliament.gov.np/en/bills/2Yh7AAa9 26 “Press Release,” Election Commission Nepal, November 13, 2025, https://election.gov.np/admin/public/storage/HOR%202082/ Press%20Release%20Today%201.pdf 27 Binod Ghimire, “Voter registration extended till Nov 21,” The Kathmandu Post, November 15, 2025, https://kathmandupost.com/ national/2025/11/15/voter-registration-extended-till-nov-21 28 “837,094 new voters added after extended registration window closes,” The Kathmandu Post, November 22, 2025, https:// kathmandupost.com/national/2025/11/22/837-094-new-voters-addedafter-extended-registration-window-closes 29 “Press Release: Nepal Extends Condolences and Solidarity to Sri Lanka Amid Devastating Floods,” Ministry of Foreign Affairs, November 30, 2025, https://mofa.gov.np/content/1710/press-release-2025-11-30/ 30 “Damage from Cyclone Ditwah in Sri Lanka Estimated at $4.1 Billion,” The World Bank, December 22, 2025, https://www.worldbank.org/ en/news/press-release/2025/12/22/damage-from-cyclone-ditwah-insri-lanka-estimated-at-4-1-billion 31 Hom Karki, “UAE requires police clearance report for Nepali visa applicants,” The Kathmandu Post, November 26, 2025, https:// kathmandupost.com/national/2025/11/26/uae-requires-policeclearance-report-for-nepali-visa-applicants 32 “World Economic Outlook,” International Monetary Fund, October 2025. https://www.imf.org/en/publications/weo/ issues/2025/10/14/world-economic-outlook-october-2025 33

Ibid

34 “World Population Clock: 8.2 Billion People (LIVE, 2025).” n.d.

Worldometer. Accessed November 19, 2025. https://www.worldometers. info/world-population/

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35 “FAO Food Price Index declines in October, world cereal stocks set to reach record high,” Food and Agriculture Organization of the United Nations. November 7, 2025. https://www.fao.org/newsroom/detail/faofood-price-index-declines-in-october--world-cereal-stocks-set-toreach-record-high/en 36 United Nations Development Programme and Oxford Poverty and Human Development Initiative. 2025“ .2025 Global Multidimensional Poverty Index (MPI): Overlapping Hardships: Poverty and Climate Hazards.” October 2025 ,17. https://hdr.undp.org/content/-2025globalmultidimensional-poverty-index-mpi.

37 International Monetary Fund. 2025. “IMF Fiscal Monitor Press Briefing.” October 15, 2025. https://mediacenter.imf.org/news/imf---fiscal-monitor-press-briefing/ s/1e2b7da4-937a-4aa1-a3f8-52c83290d049.

38

Ibid

39 Reuters. 2025. “IMF Sounds Alarm about High Global Public Debt, Urges Countries to Build Buffers.” October 15, 2025. https://www.reuters.com/world/asia-pacific/imf-sounds-alarm-abouthigh-global-public-debt-urge-countries-build-buffers-2025-10-15/.

40 International Monetary Fund. 2025. “IMF Fiscal Monitor Press Briefing.” October 15, 2025. https://mediacenter.imf.org/news/imf---fiscal-monitor-press-briefing/ s/1e2b7da4-937a-4aa1-a3f8-52c83290d049.

41

Ibid

42 International Monetary Fund. 2025. “World Economic Outlook, October 2025.” https://www.imf.org/en/-/media/Files/Publications/WEO/2025/October/ English/text.pdf.

43

Ibid

44 International Monetary Fund. 2025. "IMF-October 2025 World Economic Outlook Report." October 14, 2025. https://mediacenter.imf.org/news/imf---october-2025-world-economicoutlook-report/s/2c17a5f2-f37d-44a5-84ae-40ad41677d14.

45 International Monetary Fund. 2025. “World Economic Outlook, October 2025.” https://www.imf.org/en/-/media/Files/Publications/WEO/2025/October/ English/text.pdf.

46

Ibid

47 EFG International. 2025. “IMF: Global Economy in Flux, Prospects Remain Dim.” Accessed November 19, 2025. https://www.efginternational.com/us/insights/2025/imf_global_ economy_in_flux_prospects_remain_dim.html.

48 Food and Agriculture Organization of the United Nations. n.d.

“FAO Food Price Index.” Accessed November 19, 2025. https://www.fao.org/worldfoodsituation/foodpricesindex/en/.

49

Ibid

50

Ibid

51 European Commission. 2025. “Autumn 2025 Economic Forecast.” November 17, 2025. https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2699.

52

Ibid

53

Ibid

54 Organization for Economic Co-operation and Development.

2025. “OECD Science, Technology and Innovation Outlook 2025.” https://www.oecd.org/en/publications/oecd-science-technology-andinnovation-outlook-2025_5fe57b90-en.html.

55

Ibid

56 United Nations Development Programme and Oxford Poverty and Human Development Initiative. 2025. “2025 Global Multidimensional Poverty Index (MPI): Overlapping Hardships: Poverty and Climate Hazards.” October 17, 2025. https://hdr.undp.org/content/2025-globalmultidimensional-poverty-index-mpi.

57 United Nations Development Programme. 2025. "New Global Multidimensional Poverty Index Report Reveals Nearly 80% of World's Poor

Live in Regions Exposed to Climate Hazards." October 17, 2025. https:// www.undp.org/press-releases/new-global-multidimensional-povertyindex-report-reveals-nearly-80-worlds-poor-live-regions-exposedclimate-hazards.

58 McKinsey & Company. 2025. “Global Banking Annual Review 2025.” October 23, 2025. https://www.mckinsey.com/industries/financialservices/our-insights/global-banking-annual-review.

59

Ibid

60 “Regional economic outlook. Asia and Pacific : navigating trade headwinds and rebalancing growth," International Monetary Fund, October, 2025, https://www.imf.org/en/publications/reo/apac/ issues/2025/10/24/regional-economic-outlook-for-asia-and-pacificoctober-2025.

61

Ibid

62 Laura Bicker,Anthony Zurcher,and Flora Drury, "Trump hails 'amazing' meeting with China's Xi but no formal trade deal agreed,"BBC, October 30, 2025, https://www.bbc.com/news/articles/crl25xl1gjpo.

63 Kyle Chan, Jonathan A. Czin, Ryan Hass, Kari Heerman, Patricia M. Kim, Michael E. O’Hanlon, Mira Rapp-Hooper, Melanie W. Sisson, and Susan A. Thornton, "What happened when Trump met Xi?", BROOKINGS, November 5, 2025, https://www.brookings.edu/articles/what-happenedwhen-trump-met-xi/.

64 Helen Davidson,"Is the China-US fentanyl pipeline really responsible for the US opioid crisis?," October 30, 2025, The Guardian,https://www.theguardian.com/us-news/2025/oct/30/five-keytakeaways-donald-trump-meeting-xi-jinping-china-us-trade-talks.

65 Navin Singh Khadka, "The science behind the Fukushima waste water release," BBC, August 2023 ,26, https://www.bbc.com/news/worldasia66610977-.

66 "China reimposes Japanese seafood import suspension," KYODO NEWS, November 2025 ,9, https://english.kyodonews.net/ articles/-/#65198:~:text=While20%China20%resumed20%purchasing20% Japanese,and20%tsunami20%that20%triggered20%the.

67 Helen Davidson, “China suspends seafood imports from Japan as Taiwan row escalates,” The Guardian, November 2025 ,19, https://www. theguardian.com/world/2025/nov/19/china-suspends-seafood-importsfrom-japan-as-taiwan-row-escalates.

68 Erin Hale, "China, ASEAN sign enhanced free trade pact amid Trump tariffs," Al Jazeera, https://www.aljazeera.com/news/28/10/2025/ china-asean-sign-enhanced-free-trade-pact-as-trumps-tariffs-linger 69

Ibid

70 "China, ASEAN sign FTA upgrade to turbocharge high-level collaboration," Belt and Road Portal, OCTOBER 29, 2025, https://eng. yidaiyilu.gov.cn/p/0F0C5T09.html.

71 "Frequently Asked Questions (FAQ) - COP30," COP 30 BRAZIL, April 2, 2025, https://cop30.br/en/aboutcop30/faq-cop30?activeAccordion=4f77bf12-8b20-4f4fb270-f92e54b86e36%2C022c6ce6-70e8-4e8e-918b5d065acaef67%2C7fa8e99a-48b4-4123-8126-6cb368c28b45.

72 Rachel Sherrington and Nina Lakhani, "More than 300 big agriculture lobbyists have taken part in Cop30, investigation finds,"Guardian, November 18, 2025, https://www.theguardian.com/ environment/2025/nov/18/big-agriculture-lobbyists-cop30-climatesummit.

73 Hannah Ritchie,“Food production is responsible for onequarter of the world’s greenhouse gas emissions,” Our World in Data, 2019, https://ourworldindata.org/food-ghg-emissions.

74 Rachel Sherrington and Nina Lakhani, "More than 300 big agriculture lobbyists have taken part in Cop30, investigation finds,"Guardian, November 18, 2025, https://www.theguardian.com/ environment/2025/nov/18/big-agriculture-lobbyists-cop30-climatesummit.

75 "Overview," G20 South Africa, 2025.,https://g20.org/ about-g20/overview/.

76

Ibid

77

"What Does the G20 Do?," Council on Foreign Relations,

85

86

DOCKING NEPAL’S ECONOMIC ANALYSIS

November 18, 2025, https://www.cfr.org/backgrounder/what-does-g20do.

78 Faisal Islam and Rachel Clun,"Google boss says trillion-dollar AI investment boom has 'elements of irrationality," BBC, November 18, 2025, https://www.bbc.com/news/articles/cwy7vrd8k4eo 79 "OpenAI, Oracle, and SoftBank expand Stargate with five new AI data center sites", Softbank Group, September 24, 2025, https://group. softbank/en/news/press/20250924.

80 Brad Smith, "Microsoft invests $30 billion in UK to power AI future," Microsoft, September 16, 2025, https://blogs.microsoft.com/onthe-issues/2025/09/16/microsoft-30-billion-uk-ai-future/. ; "Microsoft plans to invest $10 billion in Portuguese AI data hub", Reuters, November 11, 2025,https://www.reuters.com/business/microsoft-plans-invest-10billion-portugal-ai-data-hub-bloomberg-news-reports-2025-11-11/.

81 Reuters, "Chipmaker Nvidia hits $5 trillion valuation,", Aljazeera, October 29, 2025, https://www.aljazeera.com/economy/2025/10/29/ chipmaker-nvidia-hits-5-trillion-valuation.

82 Reuters, "IMF says AI investment bubble could burst, comparable to dot-com bubble,"Aljazeera, October 14, 2025, https://www. aljazeera.com/economy/2025/10/14/imf-says-ai-investment-bubblecould-burst-comparable-to-dot-com-bubble. ; Faisal Islam and Rachel Clun, "Google boss says trillion-dollar AI investment boom has 'elements of irrationality," BBC, November 18, 2025, https://www.bbc.com/news/ articles/cwy7vrd8k4eo.

83 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 26/2025)”, Nepal Rastra Bank, November 2025 ,16, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of26-2025-/ current-macroeconomic-situation-tables-based-on-three-month-dataof3-83-2082-/ 84 “Current Macroeconomic and Financial Situation - Tables (based on annual data, FY 2024/25 AD)”, Nepal Rastra Bank, August 24, 2025 https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-annual-data-of-2024-25/currentmacroeconomic-situation-tables-based-on-annual-data-of-2024-25-8/

2025 ,16, https://www.nrb.org.np/contents/uploads/11/2025/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-ThreeMonth-data-of2025.26-.pdf 98

Ibid

99

Ibid

100

Ibid

101 “Government Debt Statistics For the month of Asoj 2082 (Mid-October, 2025)”, Public Debt Management Office, Accessed November 20, 2025, https://pdmo.gov.np/pages/monthlyrepo/ 102 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of-2025-26/ current-macroeconomic-situation-tables-based-on-three-month-dataof-2082-83-3/ 103 “Government Debt Statistics For the month of Asoj 2082 (Mid-October, 2025)”, Public Debt Management Office, Accessed November 20, 2025, https://pdmo.gov.np/pages/monthlyrepo/ 104 “Public debt rises to Rs. 2,724 billion, up by Rs. 50.60 billion in first quarter”, The Rising Nepal, November 2, 2025, https://risingnepaldaily. com/news/70474 105 “Government Debt Statistics For the month of Asoj 2082 (Mid-October, 2025)”, Public Debt Management Office, Accessed November 20, 2025, https://pdmo.gov.np/pages/monthlyrepo/ 106

Ibid

107

Ibid

108 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of-2025-26/ current-macroeconomic-situation-tables-based-on-three-month-dataof-2082-83-3/

85 “Nepal Development Update”, November 13, 2025, World Bank Group https://www.worldbank.org/en/country/nepal/publication/ nepaldevelopmentupdate

109 “Current Macroeconomic and Financial Situation - English (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/contents/uploads/2025/11/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-ThreeMonth-data-of-2025.26.pdf

86

Ibid

110

Ibid

87 “Current Macroeconomic and Financial Situation - English (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/contents/uploads/2025/11/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-ThreeMonth-data-of-2025.26.pdf

111

Ibid

112

Ibid

113

Ibid

114

Ibid

88

Ibid

115

Ibid

89

Ibid

90

Ibid

91

Ibid

116 “FDI pledges surge, but Nepal still struggles to cash in”, Republica, November 21, 2025, https://myrepublica.nagariknetwork.com/ news/fdi-commitments-swell-while-realization-is-pathetic-25-45.html

92

Ibid

93 “Nepal Development Update”, November 13, 2025, World Bank Group https://www.worldbank.org/en/country/nepal/publication/ nepaldevelopmentupdate 94

Ibid

95 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of-2025-26/ current-macroeconomic-situation-tables-based-on-three-month-dataof-2082-83-3/ 96 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of-2025-26/ current-macroeconomic-situation-tables-based-on-three-month-dataof-2082-83-3/ 97 “Current Macroeconomic and Financial Situation - English (Based on Annual data of 26/2025)”, Nepal Rastra Bank, November

117 “Monthly Report of Foreign Direct Investment ApprovalShrawan, Bhadra, Ashwin” Department of Industries, Accessed 18 November, 2025, https://www.doind.gov.np/detail/26006e5b-547d-441981fb-081e83066f94 118 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of-2025-26/ current-macroeconomic-situation-tables-based-on-three-month-dataof-2082-83-3/ 119 “Monthly Report of Foreign Direct Investment ApprovalShrawan, Bhadra, Ashwin” Department of Industries, Accessed 18 November, 2025, https://www.doind.gov.np/detail/26006e5b-547d-441981fb-081e83066f94 120 “Aid Management Information System”, Ministry of Finance, https://amis.mof.gov.np/AMP-portlet/api/dashboard 121

Ibid

122 "Signing and Exchange of Notes for Japanese Grant Assistance to Nepal for Emergency Rehabilitation of Sindhuli Road Affected by Floods," Embassy of Japan in Nepal, October 30, 2025, https://www.

np.emb-japan.go.jp/itpr_ja/11_000001_01140.html.

123

Ibid

124 "US$50 Million in Additional Funding Confirmed for the MCC Nepal Compact,"US Embassy Kathmandu, November 19, 2025, https:// np.usembassy.gov/us50-million-in-additional-funding-confirmed-forthe-mcc-nepal-compact/ 125

Ibid

126 "US to inject additional $50 million in MCC Nepal Compact," The Kathmandu Post, November 19, 2025, https://kathmandupost.com/ national/2025/11/19/us-to-inject-additional-50-million-in-mcc-nepalcompact 127 "Nepal Compact," Millenium Challenge Corporation, https:// www.mcc.gov/where-we-work/program/nepal-compact/

155 "Current Macroeconomic and Financial Situation-Nepali (Based on three months data of 2082/83),"Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/category/current-macroeconomic-situat ion/?department=red&fy=2082-83&subcategory=three-months.

156

Ibid

157

Ibid

158

Ibid

159

Ibid

160 "Current Macroeconomic and Financial Situation – English (Based on Annual Data of 2024/25)," Nepal Rastra Bank, November 2025, https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2082-83&subcategory=three-months 161

Ibid

128 "Germany pledges €41 million grant to Nepal for energy, economic development and health", Republica, October 8, 2025, https:// www.myrepublica.nagariknetwork.com/news/germany-pledges-eur41million-grant-to-nepal-for-energy-economic-developmen-59-88.html

162

Ibid

163

Ibid

164

Ibid

129

Ibid

165

Ibid

130

Ibid

166

Ibid

167

Ibid

131 "Govt to take concessional loans of USD 100 million from ADB", Republica, October 1, 2025, https://www.myrepublica.nagariknetwork. com/news/govt-to-take-concessional-loans-of-usd-100-million-fromadb-21-99.html.

132 "ADB's Work in Nepal,", Asian Development Bank, https://www. adb.org/where-we-work/nepal/overview.

133 "Govt to take concessional loans of USD 100 million from ADB", Republica, October 1, 2025, https://www.myrepublica.nagariknetwork. com/news/govt-to-take-concessional-loans-of-usd-100-million-fromadb-21-99.html.

134

Ibid

135 “Current Macroeconomic and Financial Situation - Tables (Based on Annual data of 2025/26)”, Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/red/current-macroeconomic-andfinancial-situation-tables-based-on-three-months-data-of-2025-26/ current-macroeconomic-situation-tables-based-on-three-month-dataof-2082-83-3/ 136

Ibid

137

Ibid

138

Ibid

139

Ibid

140 "Current Macroeconomic and Financial Situation-Nepali (Based on three months data of 2082/83),"Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/category/current-macroeconomic-situat ion/?department=red&fy=2082-83&subcategory=three-months.

141

Ibid

142

Ibid

143

Ibid

144

Ibid

145

Ibid

146

Ibid

147

Ibid

148

Ibid

149

Ibid

150

Ibid

151 “Federation of Nepal Gold and Silver Dealers' Association”, https://www.fenegosida.org/ 152

Ibid

153 Krishana Prasain,"Gold fever grips Nepal as economy stalls and fears mount," The Kathmandu Post, October 9, 2025, https:// kathmandupost.com/money/2025/10/09/gold-fever-grips-nepal-aseconomy-stalls-and-fears-mount 154 “Federation of Nepal Gold and Silver Dealers' Association”, https://www.fenegosida.org/

168

Ibid

169

Ibid

170

Ibid

171

Ibid

172

Ibid

173

Ibid

174 “Rains hamper harvesting paddy crops in Bajura,” Rising Nepal, October 9, 2025, https://risingnepaldaily.com/news/ 175 “Scores dead as rains batter Nepal’s east and south,” The Kathmandu Post, October 6, 2025, https://kathmandupost.com/ national/2025/10/06/scores-dead-as-rains-batter-nepal-s-east-andsouth.

176 "GIEWS Country Brief — Nepal (Harvesting of the 2025 maize crop and paddy forecasts)," FAO, 2025, https://www.fao.org/giews/ countrybrief/country.jsp?code=NPL 177 “Vegetable prices in Kathmandu soar as rain disrupts supply,” The Kathmandu Post, November 1, 2025, https://kathmandupost.com/ money/2025/11/01/vegetable-prices-in-kathmandu-soar-as-raindisrupts-supply-routes 178 “Vegetable prices double amid rainfall disruptions,” Rising Nepal, November 1, 2025, https://risingnepaldaily.com/news/70412.

179 “Veggie prices soar 200 percent on weddings, crop delays,” The Kathmandu Post, November 26, 2025, https://kathmandupost.com/ money/2025/11/26/weddings-crop-delays-push-vegetable-prices-past200-percent 180 "IFPRI Maize Market Report," IFPRI MAISP / MAIZE market monitoring, October 2025, https://massp.ifpri.info/2025/11/18/ifpri-maizemarket-report-october-2025/ 181 Sangam Prasain, “Mechanisation transforms farming in eastern Tarai,” Kathmandu Post, October 25, 2025, https://kathmandupost.com/ money/2025/10/25/mechanisation-transforms-farming-in-eastern-tarai.

182 "Potato Value Chain Development (Potato booklet)," PMAMP, 2025, https://pmamp.gov.np/sites/default/files/2025-08/web%20 pmamp%20potato%20booklet%202082%2005%2006.pdf 183 “DDC gets Rs600 million credit to pay dairy farmers,” The Kathmandu Post, September 27, 2025, https://kathmandupost.com/ money/2024/09/27/government-releases-rs600-million-credit-toddc-to-pay-farmers ; "Milk Money Crisis," MyRepublica, November 9, 2025, https://www.myrepublica.nagariknetwork.com/news/milk-moneycrisis-19-74.html 184 "Farmers yet to be paid over Rs1 billion as milk flush season begins," The Kathmandu Post, October 26, 2025, https://kathmandupost. com/national/2025/10/26/farmers-yet-to-be-paid-over-rs1-billion-asmilk-flush-season-begins 185

Ibid

88

DOCKING NEPAL’S ECONOMIC ANALYSIS

186 "Biratnagar Milk Supply Scheme facing acute crisis," Rising Nepal Daily, November 21, 2025, https://risingnepaldaily.com/news/71443 187

Ibid

215 Ministry of Finance, Government of Nepal. Economic Survey 2023/24. Kathmandu: Ministry of Finance, 2024. Accessed February 19, 2025. https://mof.gov.np/content/281/economic-survey-2023-24/

188

Ibid

216

189

Ibid

190 Jyotee Katuwal, "Rs340 million Murrah buffalo scheme fails farmers in Karnali," The Kathmandu Post, September 30, 2025, https:// kathmandupost.com/karnali-province/2025/09/30/rs340-millionmurrah-buffalo-scheme-fails-farmers-in-karnali 191

Ibid

Ibid

217 “भदौ २४ : यसरी भीडको निसानामा परे युलन े ्स स्कु ल र ग्लोबल कलेज”.

Ekantipur, October 8, 2025. https://ekantipur.com/news/2025/10/07/ august-24-eulens-school-and-global-college-were-targeted-by-themob-11-20.html 218

Ibid

219

Ibid

192 “FMTC to Open 13 Paddy Procurement Centers Across the Country,” New Business Age, October 27, 2025, https://newbusinessage. com/news/45941/fmtc-to-open-13-paddy-procurement-centersacross-the-country/

220 “60,000 answer sheets of 17,000 students burnt during Gen-Z protest,” The Rising Nepal. October 18, 2025. https://risingnepaldaily.com/ news/69824 221

Ibid

193 “Unseasonal rain damages paddy planted in 10,000 hectares of land,” The Rising Nepal, November 11, 2025, https://risingnepaldaily.com/ news/70950

222

Ibid

194 "Heavy Rains Damage Paddy Harvest in Nepal," Reuters, October 5, 2025, https://www.reuters.com/business/environment/heavyrains-damage-paddy-nepal-2025

224 “73 Percent Students Pass Grade 12 Supplementary Examination,” MyRepublica, November 9, 2025. https://myrepublica. nagariknetwork.com/news/73-percent-students-pass-grade-12supplementary-examination-39-97.html

195 USAID CSISA Program, Stress-Tolerant Varieties Trial Summary, 2025, https://csisa.org.

196 FAO Nepal and USAID, “Seed Infrastructure and Climate-Smart Agriculture Support,” Program Brief, 2025, https://fao.org/nepal.

197 “Climate Variability Threatens Staple Production,” Kathmandu Post, 2025, https://kathmandupost.com.

198 World Bank, “Laying Foundation for the Modern Livestock Sector in Nepal,” Feature story, February 19, 2025, https://www.worldbank. org/en/news/feature/2025/02/19/laying-foundation-for-the-modernlivestock-sector-in-nepal.

199

Ibid.

200

Ibid.

201

Ibid.

202 “Feed Mills Warn of Maize Shortage,” The Kathmandu Post, September 2025, https://kathmandupost.com.

203 Ministry of Agriculture and Livestock Development (MoALD), “Proposal for Maize Production Zones,” 2025.

204 CGIAR, “Scaling Commercial Maize in Nepal,” Program Report, 2025, https://cgspace.cgiar.org.

205 Nepal Feed Industries Association, “Industry Statement on Feed Stress,” October 2025.

206 “Investment Needed in Maize Sector,” The Kathmandu Post, 2025, https://kathmandupost.com.

207 “Nepal–Bangladesh Dairy Talks Advance,” MyRepublica, November 2025, https://myrepublica.nagariknetwork.com/news/ adb-sdc-and-world-banks-ida-partner-to-build-climate-resilientinfrastructu-34-48.html.

208 Mumbi Sarah Kasumba, “Meet the Winners of the Tech4Resilience Challenge,” Global Resilience Partnership, November ,14 2025, https://www.globalresiliencepartnership.org/meet-the-winners-ofthe-tech4resilience-challenge/.

209

Ibid.

223 “Results of Class 12 Increment Exam Made Public,” Rising Nepal Daily, November 10, 2025. https://risingnepaldaily.com/news/70897

225 “Grade 12 Supplementary Exam Results Published.” Nepal News, November 10, 2025. https://english.nepalnews.com/s/nation/grade12-supplementary-exam-results-published/ 226 “Minister Pun Scraps Politically Affiliated Teachers’ Associations.” MyRepublica, November 9, 2025. https://www.myrepublica. nagariknetwork.com/news/minister-pun-scraps-politically-affiliatedteachers-associations-21-97.html 227

Ibid

228

Ibid

229 “Teachers’ groups, Minister Pun on collision course over move to ’depoliticise’ education sector.” The Kathmandu Post, November 12, 2025. https://kathmandupost.com/national/2025/11/12/teachers-groupsminister-pun-on-a-collision-course-over-move-to-depoliticiseeducation-sector 230 “शिक्षामन्त्री महावीर पुनका तीन निर्देशन” Ratopati, October 10, 2025. https://www.ratopati.com/story/517074/three-directives-fromeducation-minister-mahabir-pun 231

Ibid

232

Ibid

233 ”Minister Pun calls for merit-based selection of university chancellors”. MyRepublica, October 15, 2025. https://myrepublica. nagariknetwork.com/news/minister-pun-calls-for-merit-basedselection-of-university-chancellors-62-13.html 234 ” Education Minister issues directive to CTEVT”. Khabarhub, September 26, 2025. https://english.khabarhub.com/2025/26/498214/ 235

Ibid

236 “Minister Pun Stresses Mandatory Computer Teachers in Every School.” myRepublica, 24 September 2025. https://myrepublica. nagariknetwork.com/news/minister-pun-stresses-mandatory-computerteachers-in-every-school-51-51.html

210 Sören Schneider and Stefanie Lux, “Anticipatory Action and Artificial Intelligence: Plotting a Pathway Forward,” Anticipation Hub, July 2025 ,11, https://www.anticipation-hub.org/news/anticipatory-action-andartificial-intelligence-plotting-a-pathway-forward.

237 “Education Minister Pun for Mandatory Computer Teacher in Every School.” Nepal News, September 23 2025. https://english.nepalnews. com/s/nation/education-minister-pun-for-mandatory-computerteacher-in-every-school/

211

238 “Nepal Education Minister Mandates Computer Teachers in All Secondary Schools.” MyUniCampus, 24 September 2025. https://myunicampus.com/blog/nepal_education_minister_ mandates_computer_teachers_in_all-secondary-schools_%7C_ myunicampus_6074

Ibid.

212 Ministry of Finance, Government of Nepal. Economic Survey 2023/24. Kathmandu: Ministry of Finance, 2024. Accessed February 19, 2025. https://mof.gov.np/content/281/economic-survey-2023-24/ 213 Ministry of Finance, Government of Nepal. आर्थिक सर्वेक्षण २०८१/८२ (Economic Survey 2081/82). Kathmandu: Ministry of Finance, 2082 B.S. (2025). Accessed February 19, 2025. https://mof.gov.np/content/1520/ economic-survey-2081-82/ 214

Ibid

239 “Education Minister Pun for Mandatory Computer Teacher in Every School.” The Rising Nepal, 23 September 2025. https:// risingnepaldaily.com/news/68743 240 “Education Minister Mahabir Pun Started Reforms.” Edusanjal, 23 September 2025. https://edusanjal.com/news/education-minister-

NEFPORT ISSUE 63 – JANUARY 2026

mahabir-pun-started-reforms/ 241 “Education Minister Pun for Mandatory Computer Teacher in Every School.” The Rising Nepal, 23 September 2025. https:// risingnepaldaily.com/news/68743 242 “KU’s Push to Make Nepal an Education Hub.” The Annapurna Express, October 9, 2025. https://theannapurnaexpress.com/story/59146/ 243

Ibid

244

Ibid

245

Ibid

246

Ibid

Inventory Report 2022, Ministry of Forests and Environment, Government of Nepal, 2022.

264 “Scores dead as rains batter Nepal’s east and south,” The Kathmandu Post, October 6, 2025, https://kathmandupost.com/ national/2025/10/06/scores-dead-as-rains-batter-nepal-s-east-andsouth.

265 “Floods cause heavy losses across eastern Tarai,” The Rising Nepal, October 2025, https://risingnepaldaily.com/news/69856.

266 “Devastating floods hit Nepal,” Early Action Partnership, 2025, https://www.early-action-reap.org/devastating-floods-hit-nepal.

247 ”Chinese Embassy in partnership with MOCIT and Huawei Nepal initiates smart classrooms in Gandaki Province.” Technology Khabar, January 21, 2025. https://www.technologykhabar.com/2025/01/21/190013/

267 “What caused Nepal’s devastating flood damage and how was it contained?” Al Jazeera, October 7, 2025, https://www.aljazeera.com/ news/2025/10/7/what-caused-nepals-devastating-flood-damage-andhow-was-it-contained.

248 ”KMC moves to digitize community schools”. KhabarHub, April 19, 2025. https://english.khabarhub.com/2025/19/459318/

268 “Air pollution rising across Nepal,” Online Khabar, 2025, https:// english.onlinekhabar.com/air-pollution-rising-across-nepal.html.

249 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu: Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th)

269 Phoebe Weston, “Britain one of least nature-connected nations in world—with Nepal the most,” The Guardian, November 1, 2025, https://www.theguardian.com/environment/2025/nov/01/britain-one-ofleast-nature-connected-nations-in-world-with-nepal-the-most.

250 Current Macroeconomic and Financial Situation of Nepal Based on Annual data Ending Mid-July, 2024/25”, Nepal Rastra Bank, November 18 2025, https://www.nrb.org.np/contents/uploads/2025/08/ Current-Macroeconomic-and-Financial-Situation-English-Based-onAnnual-data-of-2024.25.pdf 251 Current Macroeconomic and Financial Situation of Nepal Based on Annual data Ending Mid-July, 2024/25”, Nepal Rastra Bank, November 18 2025, https://www.nrb.org.np/contents/uploads/2025/08/ Current-Macroeconomic-and-Financial-Situation-English-Based-onAnnual-data-of-2024.25.pdf

270 “Nepal Receives $9.4 Million for Forest Carbon Credits Under the Forest Carbon Partnership Facility,” The World Bank, November 16, 2025, https://www.worldbank.org/en/news/press-release/2025/11/16/ nepal-receives-9-4-million-for-forest-carbon-credits-under-the-forestcarbon-partnership-facility#:~:text=KATHMANDU%2C%20November%20 14%2C%202025%20%E2%80%94,in%20the%20Terai%20Arc%20 Landscape.

271

Ibid

252 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th)

272 “Madhya Bhotekoshi Hydropower Project Commences Commercial Operation,” Share Sansar, October 16, 2025, https://www. sharesansar.com/newsdetail/madhya-bhotekoshi-hydropower-projectcommences-commercial-operation-2025-10-16

253 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th)

273 “IPPAN Sends Letter to Ministers Demanding Security,” The Rising Nepal, September 28, 2025, https://risingnepaldaily.com/ news/68978

254 Dipesh Ghimire, “Nepal’s Renewable Energy Push: 37 Lakh Households Reach Clean Energy Access; AEPC Eyes Carbon Neutral Future by 2045,” NEPSE Trading, November 10, 2025, https://nepsetrading. com/blog/nepals-renewable-energy-push-37-lakh-households-reachclean-energy-access-aepc-eyes-carbon-neutral-future-by-2045.

274 “Nepal News Evening Economic Brief – November 17, 2025,” Nepal News, November 17, 2025, https://english.nepalnews.com/s/ business/nepal-news-evening-economic-brief-november-17-2025/

255 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th) 256 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th) 257 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th) 258 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th) 259 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th) 260 Nepal Electricity Authority, A Year in Review- Fiscal Year 2024/2025, Kathmandu:Nepal Electricity Authority, 2025. https://www. nea.org.np/publications. (accessed November 18th) 261 National Disaster Risk Reduction and Management Authority (NDRRMA), Disaster Data for 2025 (Monthly Situation Reports, up to November), Government of Nepal, accessed December 2025, https:// drrportal.gov.np/.

262 National Disaster Risk Reduction and Management Authority (NDRRMA), Landslide Incident Data 2025 (Cumulative Reports up to November), Government of Nepal, accessed December 2025, https:// drrportal.gov.np/.

263

Forest Research and Training Centre (FRTC), National Forest

275 “Renewable Energy Will Be Mainstreamed: Energy Minister Ghising,” The Himalayan Times, September 21, 2025, https://thehimalayantimes.com/nepal/renewable-energy-will-bemainstreamed-energy-minister-ghising.

276

Ibid

277 “Government Raises EIA Thresholds for Solar Projects to Match Hydropower Standards,” Nepal Energy Forum , October 12, 2025, http://www.nepalenergyforum.com/government-raises-eia-thresholdsfor-solar-projects-to-match-hydropower-standards/.

278 “Progress at a Glance: Year in Review – FY 2081/82 (2024/25),” AEPC, November 6, 2025, https://www.aepc.gov.np/docs/1912/ Prograss%20Report%20082.pdf 279 Prakash Kafle, “An Analysis of Nepal’s Position on COP-30,” The Diplomat Nepal, November 5, 2025, https://diplomatnepal.com/ diplomacy/climate/an-analysis-of-nepals-position-on-cop-30/ 280 “Nepal Calls for Joint Action, Climate Justice, and Urgent Global Cooperation,” Khabarhub, November 8, 2025, https://english. khabarhub.com/2025/08/505010/ 281 “Nepal’s energy landscape at a crossroads: Solar and storage, untapped giants,” The Himalayan Times, 2025, https://thehimalayantimes. com/opinion/nepals-energy-landscape-at-a-crossroads-solar-andstorage-untapped-giants.

282 “Government unveils policy roadmap for 2025–26 focusing on green energy and digital transformation,” Tax TMI, 2025, https://www. taxtmi.com/news?id=42758.

283 “Prohibition on Incineration of Plastic Waste in Kathmandu Metropolitan City Area,” Nepal News, November 9, 2025, https://english. nepalnews.com/s/capital/prohibition-on-incineration-of-plastic-wastein-kathmandu-metropolitan-city-area/

89

90

DOCKING NEPAL’S ECONOMIC ANALYSIS

284 “KMC Bans Burning of Plastic Waste to Curb Air Pollution,” The Himalayan Times, November 9, 2025, https://thehimalayantimes.com/ kathmandu/kmc-bans-burning-of-plastic-waste-to-curb-air-pollution

Birth Control Shots for Months," Kathmandu Post, November 6, 2025, https://kathmandupost.com/health/2025/11/06/health-facilities-acrossthe-country-without-birth-control-shots-for-months.

285 “ADB, IDA, AND SWITZERLAND PARTNER TO STRENGTHEN NEPAL’S DISASTER RISK MANAGEMENT AND BUILD CLIMATE-RESILIENT INFRASTRUCTURE,” The World Bank, November 2025 ,5, https://www. worldbank.org/en/news/press-release/05/11/2025/adb-ida-andswitzerland-partner-to-strengthen-nepal-s-disaster-risk-managementand-build-climate-resilient-infrastructur

306 UNFPA Nepal, “A Milestone Moment for Reproductive Health in Nepal: Over USD 700,000 in UNFPA Match Fund Commodities,” UNFPA Nepal, September 2, 2025. Accessed November 20, 2025.

286 Ministry of Finance. “Economic Survey 2081/82.” Government of Nepal, Accessed on August 20, 2025. https://mof.gov.np/content/1520/ economic-survey-2081-82/

307 UNFPA Nepal, “A Milestone Moment for Reproductive Health in Nepal: Over USD 700,000 in UNFPA Match Fund Commodities,” UNFPA Nepal, September 2, 2025. Accessed November 20, 2025.

287

ibid

288

ibid

308 WHO South-East Asia Region, "WHO South-East Asia Region Announces Winners of Public Health Champion Awards," September 22, 2025, https://www.who.int/southeastasia/news/detail/22-09-2025who-south-east-asia-region-announces-winners-of-public-healthchampion-awards.

289

ibid

309

290

ibid

291

ibid

310 WHO South-East Asia Region, "WHO South-East Asia Region Announces Winners of Public Health Champion Awards," September 22, 2025, https://www.who.int/southeastasia/news/detail/22-09-2025who-south-east-asia-region-announces-winners-of-public-healthchampion-awards.

292 The News Minute, “Nepal Announces Rs 1.5 mn Relief for Gen Z Protest Martyrs amid Historic Political Shift,” The News Minute, September 16, 2025. Accessed November 20, 2025. https://www.thenewsminute. com/news/nepal-announces-rs-15mn-relief-for-gen-z-protest-martyrsamid-historic-political-shift.

293 Ratopati. “Govt to provide Rs 15,000 each to Gen-Z movement injured people.” Ratopati English, November 18, 2025. Accessed November 20, 2025. https://english.ratopati.com/story/41674 294 Nepal Health News, "During the gen-z movement, 15 health institutions in the provinces and local levels were completely destroyed, and 37 suffered partial damage," Nepal Health News, accessed November 19, 2025, https://www.nepalhealthnews.com/detail/64863.

ibid

311 Nepal News, "Patients with Chronic Illness Mandated to Be Enrolled in Health Insurance Scheme for Monetary Aid," September 5, 2025, https://english.nepalnews.com/s/health/patients-with-chronicillness-mandated-to-be-enrolled-in-health-insurance-scheme-formonetary-aid/.

312 My Republica. "Minister Gautam Vows to Address Health Insurance Problems." November 11. Accessed November 19, 2025. https:// myrepublica.nagariknetwork.com/news/minister-gautam-vows-toaddress-health-insurance-problems-31-54.html.

295 Rising Nepal Daily, "Health Ministry to resume services from NHRC building," September 14, accessed November 19, 2025, https:// risingnepaldaily.com/news/68295.

313 Nepal News. "Health Minister Unveils Urgent Health Sector Reform Action Plan." November 14, 2025. https://english.nepalnews.com/s/ health/health-minister-unveils-urgent-health-sector-reform-actionplan/.

296 Nepal Health News, "During the gen-z movement, 15 health institutions in the provinces and local levels were completely destroyed, and 37 suffered partial damage," Nepal Health News, accessed November 19, 2025, https://www.nepalhealthnews.com/detail/64863.

314 Nepal News, "Health Ministry to Mobilize Teams to Treat Problems Ailing Health Sector," accessed November 19, 2025, https:// english.nepalnews.com/s/health/health-ministry-to-mobilize-teams-totreat-problems-ailing-health-sector.

297 Arjun Poudel, "Underpaid and Overworked, Private Hospital Nurses Demand Pay Parity," Kathmandu Post, October 26, 2025, https:// kathmandupost.com/health/2025/10/26/underpaid-and-overworkedprivate-hospital-nurses-demand-pay-parity.

315 Rising Nepal Daily, "Health Minister Unveils Urgent Health Sector Reform Action Plan," November 14, 2025 https://risingnepaldaily. com/news/71125.

298 Shristi Karki, "Nepal Haemorrhaging Nurses," Nepali Times, accessed November 19, 2025, https://nepalitimes.com/here-now/nepalhaemorrhaging-nurses.

299 Ministry of Health and Population of Nepal, "Social Service Unit Program Operation Guidelines A.B. 2082.083," accessed November 19, 2025, https://mohp.gov.np/content/328/announcement-/.

300 Shristi Karki, "Nepal Haemorrhaging Nurses," Nepali Times, accessed November 19, 2025, https://nepalitimes.com/here-now/nepalhaemorrhaging-nurses.

301 Shristi Karki, "Nepal Haemorrhaging Nurses," Nepali Times, accessed November 19, 2025, https://nepalitimes.com/here-now/nepalhaemorrhaging-nurses.

302 UNICEF and WHO, "UNICEF and WHO Deliver Over One Million Cholera Vaccine Doses to Support Emergency Response in Nepal," WHO Nepal, September 25, 2025, https://www.who.int/nepal/news/detail/2509-2025-unicef-and-who-deliver-over-one-million-cholera-vaccinedoses-to-support-emergency-response-in-nepal.

303 UNICEF and WHO, "UNICEF and WHO Deliver Over One Million Cholera Vaccine Doses to Support Emergency Response in Nepal," WHO Nepal, September 25, 2025, https://www.who.int/nepal/news/detail/2509-2025-unicef-and-who-deliver-over-one-million-cholera-vaccinedoses-to-support-emergency-response-in-nepal.

304 Arjun Poudel, "Health Facilities Across the Country Without Birth Control Shots for Months," Kathmandu Post, November 6, 2025, https://kathmandupost.com/health/2025/11/06/health-facilities-acrossthe-country-without-birth-control-shots-for-months.

305

Arjun Poudel, "Health Facilities Across the Country Without

316 “Health Ministry urges vigilance against waterborne diseases”, Nepal News, October 5, 2025. https://english.nepalnews.com/s/health/ health-ministry-urges-vigilance-against-waterborne-diseases/ 317 “Experts urge precautions against waterborne diseases during disaster”, KhabarHub, October 6, 2025. https://english.khabarhub. com/2025/06/500155/ 318

Ibid

319

Ibid

320 “चार महिनामा ७ सय ५६ जना कुकुरको टोकाईबाट घाइते, अस्पतालमा रे बिजविरुद्धको खोप अभाव”, Ekantipur, November 19, 2025. https://ekantipur. com/lumbini-pradesh/2025/11/19/en/756-people-injured-by-dog-bitesin-four-months-hospitals-lack-anti-rabies-vaccine-16-22.html 321

Ibid

322

Ibid

323

Ibid

324

Ibid

325 “22 percent of Kathmanduites over 30 are diabetic”, The Kathmandu Post, November 14, 2025 https://kathmandupost.com/ health/2025/11/14/22-percent-of-kathmanduites-over-30-are-diabetic 326

Ibid

327

Ibid

328 “Your Body and Sugar: Terms to Know”, University of Virginia Health, Accessed on November 27, 2025. https://www.uvahealth. com/conditions/diabetes-types#:~:text=Diabetes%20type%201%20 and%20type%202%20come,and%20your%20body%20becomes%20 resistant%20to%20insulin.

NEFPORT ISSUE 63 – JANUARY 2026

329

Ibid

330 “Dengue persists despite cooler temperatures”, The Kathmandu Post, October 29, 2025. https://kathmandupost.com/ health/2025/10/29/dengue-persists-despite-cooler-temperatures 331

Ibid

332

Ibid

333

Ibid

334

Ibid

335 Ruby Maka Shrestha, Ram Chandra Paudel, Puspanjali Adhikari, Ram Hari Ghimire, Karma Gurung and Rajeev Shrestha. “Diagnostic Accuracy of Artificial Intelligence-Based Chest X-Ray Reading for Screening of Tuberculosis.” Journal of Nepal Health Research Council, 2024. https://nepmed.nhrc.gov.np/entities/publication/b0f315ab-5a844cd2-bc3a-a9943eccb495/full.

336

Ibid

337 “Telecommunication Indicators Bhadra, 2082,” Nepal Telecommunications Authority, Accessed on November 24, 2025. https:// nta.gov.np/uploads/contents/Approved_MIS_2082%20Bhadra.pdf 338

Ibid

339

Ibid

340

Ibid

341

Ibid

342

Ibid

343 “Monthly Payment Systems Indicators: Asoj, 2082 (MidNovember 2025),” Nepal Rastra Bank, November 16, 2025. https://www. nrb.org.np/contents/uploads/2025/11/2082_06-PS-Indicator.pdf 344

Ibid

345

Ibid

346

Ibid

347 “Telecommunication Indicators Bhadra, 2082”, Nepal Telecommunications Authority, Accessed on November 24, 2025. https:// nta.gov.np/uploads/contents/Approved_MIS_2082%20Bhadra.pdf 348

Ibid

349

Ibid

350 “2025 Nepalese Gen Z Protests,” Britannica, 7 October. 2025. https://www.britannica.com/event/2025-Nepalese-Gen-Z-Protests 351 “Nepal’s social media bans and corruption: What actually triggered Gen Z protests in Baneshwar, Kathmandu?” The Week, 08 September 2025. https://www.theweek.in/news/world/2025/09/08/ nepals-social-media-bans-and-corruption-what-actually-triggeredgen-z-protests-in-baneshwar-kathmandu.html 352 “At least 19 killed in 'Gen Z' protests after Nepal bans 26 social media sites including X, WhatsApp and YouTube,” The Guardian, 08 September 2025. https://www.theguardian.com/world/2025/sep/08/ nepal-bans-26-social-media-sites-including-x-whatsapp-and-youtube 353 “Nepal lifts social media ban after 19 killed in protests against corruption,” Al Jazeera, 09 September 2025. https://www.aljazeera.com/ news/2025/9/9/nepal-lifts-social-media-ban-after-19-killed-in-protestsreport 354 “Nepal: Unlawful Use of Force During ‘Gen Z’ Protest,” Human Rights Watch, 19 November 2025. https://www.hrw.org/news/2025/11/19/ nepal-unlawful-use-of-force-during-gen-z-protest 355 “Media Effects: 2025 Gen Z‑led Protest in Nepal,” Media Studies Group. https://www.mediastudiesgroup.org.in/media-effectsgen-z-led-protest-in-nepal/; “VPNs, Discord & more: How Nepal’s Gen Z mobilised protests amid social media ban.” Firstpost, September 2025. https://www.firstpost.com/explainers/nepal-gen-z-mobilised-protestssocial-media-ban-13932446.html; Who are the organisers of Nepal’s massive Gen Z protest?” India Today, 08 September 2025. https://www. indiatoday.in/world/story/who-are-the-organisers-of-nepals-massivegen-z-protest-2783981-2025-09-08 356

Ibid.

357

Ibid.

358 ‘More egalitarian’: How Nepal’s Gen Z used gaming app Discord to pick PM, Al Jazeera, 15 September 2025. https://www.aljazeera. com/amp/news/2025/9/15/more-egalitarian-how-nepals-gen-z-usedgaming-app-discord-to-pick-pm 359 “How Nepal’s Gen Z used gaming app Discord to pick prime minister.” K24 Digital, September 15 2025. Available at: https://k24. digital/411/how-nepals-gen-z-used-gaming-app-discord-to-pick-primeminister 360 Choudhury, Abhishek Roy & Yogita Khanolkar, “Nepal’s Discord Revolution – Gen Z at the Frontline,” Countercurrents, 26 September 2025. https://countercurrents.org/2025/09/nepals-discord-revolution-gen-zat-the-frontline/; “From Protests to choosing its leader: How social media is shaping Nepal.” Business Standard, 14 September 2025. https://www. business-standard.com/world-news/nepal-protests-genz-social-mediaban-political-crisis-125091400245_1.html 361 “Communications Minister Kharel launches free internet at Gongabu Bus Park,“ Business 360°, November 5, 2025, https://www. b360nepal.com/detail/26854/communications-minister-kharellaunches-free-internet-at-gongabu-bus-park 362 “काठमाडौँका १९ स्थानमा निःशुल्क वाइफाइ इन्टरनेट,” Ratopati, November 5, 2025. https://www.ratopati.com/story/521884/free-wi-fiinternet-at-19-locations-in-kathmandu 363 “Free Wi-Fi internet now available at 19 locations in Kathmandu,” Radio Nepal, November 5, 2025. https://radionepalonline. com/en/2025/11/05/419321.html 364 “Communications Minister Kharel launches free internet at Gongabu Bus Park,“ Business 360°, November 5, 2025, https://www. b360nepal.com/detail/26854/communications-minister-kharellaunches-free-internet-at-gongabu-bus-park 365 Krishana Prasain, "Nepal rolls out ambitious AI policy," The Kathmandu Post, August 16, 2025. https://kathmandupost.com/ money/2025/08/16/nepal-rolls-out-ambitious-ai-policy 366 "Government Establishes National AI Centre to Promote Digital Transformation," The Diplomat Nepal, November 23, 2025. https:// diplomatnepal.com/news/government-establishes-national-ai-centreto-promote-digital-transformation/ 367 “National Artificial Intelligent (AI) Policy, 2082,” Ministry of Communication and Information Technology, November 27, 2025, https:// mocit.gov.np/content/13111/nationalai---policy---/ 368 Sangam Prasain, “837,094 new voters added following poll announcement,” myRepublica, November 22, 2025. https://myrepublica. nagariknetwork.com/index.php/news/837094-new-voters-addedfollowing-poll-announcement-90-58.html 369 “EC registers new 8,370,094 votes,” The Rising Nepal, November 11, 2025. https://risingnepaldaily.com/news/71523 370 “837,094 new voters added after extended registration window closes,” The Kathmandu Post, November 22, 2025. https:// kathmandupost.com/national/2025/11/22/837-094-new-voters-addedafter-extended-registration-window-closes 371 “तेस्रो सार्वजनिक वित्तीय व्यवस्थापन सुधार राष्ट्रिय रणनीति २०८२-२०८७,” Ministry of Finance, October 7, 2025, https://mof.gov.np/content/1630/ the-third-public-financial-management-improve-national/

372 “The Third Public Financial Management Reform National Strategy,” Ekantipur, October 2025 ,9. https://ekantipur.com/ business/09/10/2025/en/third-public-financial-management-reformnational-strategy24-56-.html 373

Ibid

374 “Finance ministry maintains hotline and direct email services to file complaints against corruption,” myRepublica, September ,22 2025. https://myrepublica.nagariknetwork.com/news/finance-ministrymaintains-hotline-and-direct-email-services-to-file-compla20-23-.html 375 “MoF receives more than 3,500 complaints over irregularities; 80 percent relates to local bodies,” myRepublica, November 2025 ,3. https://myrepublica.nagariknetwork.com/news/mof-receives-more-than-3500complaints-over-irregularities-80-percent-relat44-43-.html

91

92

DOCKING NEPAL’S ECONOMIC ANALYSIS

376

Ibid

377 Physical Infrastructure Reconstruction Fund, Ministry of Urban Development, accessed on November 2025 ,25. https://www.rebuildnepal. gov.np/ 378 Physical Infrastructure Reconstruction Fund, Ministry of Urban Development, accessed on November 2025 ,25. https://www.rebuildnepal. gov.np/donation-history/?sort=date&order=desc 379 “Government seeks donations for reconstruction of damaged structures,” The Kathmandu Post, September 25, 2025. https:// kathmandupost.com/national/2025/09/25/government-seeks-donationsfor-reconstruction-of-damaged-structures 380 "AI and the Kratt* momentum," e-Estonia, October 11, 2018, https://e-estonia.com/ai-and-the-kratt-momentum 381 Jennifer L. Schenker, “Interview Of The Week: Ott Velsberg, Government Chief Data Officer, Estonia,” The Innovator, November 2025, https://theinnovator.news/interview-of-the-week-ott-versberggovernment-chief-data-officer-estonia/ 382 Simon Webster, “Been there, done Kratt: An AI lesson from Estonia,” The Mandarin, September 29, 2025, https://www.themandarin. com.au/299752-ai-artificial-intelligence-lessons-estonia-kratt/ 383

Ibid

384 Government of Nepal. (2025). Economic Survey 82/2081 (FY 25/2024). Ministry of Finance. https://giwmscdntwo.gov.np/media/ pdf_upload/आधबक20%सिने क्ण82-202081%_ksjdgmv.pd ् 385 Tuladhar, Pratibha, “The day Kathmandu burned”, September 12, 2025, https://asianews.network/the-day-kathmandu-burned/ 386 Nepal Khabar. “Why Is the Private Sector Always under Attack?” Nepal Khabar (English), September 14, 2025. https:// en.nepalkhabar.com/news/detail/15366/ 387 “Nepal pegs total damage from Gen-Z protests at US$ 580 million”, Clickmandu, November 18,2025 https://english.clickmandu.com/2025/11/4770/ 388 Khabarhub. 2025. “Private Sector Incurs Estimated Loss of Around Rs 36 Billion during Gen-Z Protests.” Khabarhub, November 16. https://english.khabarhub.com/2025/16/506365/ 389 The Rising Nepal. “Physical Infrastructure Reconstruction Fund Set Up.” The Rising Nepal, September 25, 2025. https://risingnepaldaily. com/news/68844 390 ShareSansar. “Nepal Government Sets Up Fund to Rebuild Structures Damaged During Gen Z Protests.” ShareSansar, September 25, 2025. https://www.sharesansar.com/newsdetail/nepal-governmentsets-up-fund-to-rebuild-structures-damaged-during-gen-zprotests-2025-09-25 391 Government of Nepal, Ministry of Urban Development.

“Donation History.” Physical Infrastructure Reconstruction Fund, Rebuild Nepal. Accessed November 24, 2025. https://www.rebuildnepal.gov.np/ donation-history/?sort=date&order=desc 392 The Rising Nepal, “Physical Infrastructure Reconstruction Fund Receives Rs 93 Million,” The Rising Nepal, November 24, 2025, https:// risingnepaldaily.com/news/71601 393 Nepal Energy Forum. “Minister Ghising Orders Termination of Stalled Road Projects.” Nepal Energy Forum, September 27, 2025. http:// www.nepalenergyforum.com/minister-ghising-orders-termination-ofstalled-road-projects/ 394

Ibid

395 The Rising Nepal. “Govt to End Contracts of 50 Road Projects.”

The Rising Nepal, October 20, 2025. https://risingnepaldaily.com/news/69 396 Republica. “Govt Terminates 25 Fraudulent Road Projects.” myRepublica, November 17, 2025. https://myrepublica.nagariknetwork. com/news/govt-terminates-25-fraudulent-road-projects-71-87.html 397 Farsight Impact. “Tallying the Widespread Impact of the October 2025 Rainfall.” Farsight Impact, October 8, 2025. https:// farsightimpact.com/brief/tallying-the-widespread-impact-of-the-

october-2025-rainfall/ 398 Republica. “105 MW Power Generations of 13 Hydel Projects Stopped, Rs 100 Million Loss.” myRepublica, October 30, 2025. https:// myrepublica.nagariknetwork.com/news/105-mw-power-generations-of13-hydel-projects-stopped-rs-100-million-loss-t-33-45.html 399 Kathmandu Post. “Karki Government Praised for Disaster Response.” Kathmandu Post, October 6, 2025. https://kathmandupost. com/national/2025/10/06/karki-government-praised-for-disasterresponse 400 Khabarhub. “Nepal, India Sign Agreements to Build Two CrossBorder Transmission Lines.” Khabarhub, October 29, 2025. https://english. khabarhub.com/2025/29/503340/ 401 Kathmandu Post. “Nepal, India Sign Deal to Build Two 400 kV Transmission Lines.” Kathmandu Post, October 29, 2025. https:// kathmandupost.com/money/2025/10/29/nepal-india-sign-deal-to-buildtwo-400kv-transmission-lines.

402

Ibid

403 Republica, “License required for large real estate transactions in metropolis and sub-metropolis,” Republica, September 26, 2025, https://myrepublica.nagariknetwork.com/news/license-required-forlarge-real-estate-transactions-in-metropolis-and-sub-m-45-35.html 404 Republica, “Govt makes its permission mandatory for real estate transactions worth over Rs 30 million,” Republica, October 15, 2025, https://myrepublica.nagariknetwork.com/news/govt-makes-itspermission-mandatory-for-real-estate-transactions-worth-over-73-87. html 405 Republica, “Nepal moves to regulate big-money property deals,” Republica, October 30, 2025, https://myrepublica.nagariknetwork. com/news/govt-steps-up-to-license-property-dealers-88-50.html 406 Republica, “Govt decides to dissolve Land Commission formed

by Oli-led government a year ago,” Republica, October 10, 2025, https:// myrepublica.nagariknetwork.com/news/govt-decides-to-dissolve-landcommission-formed-by-oli-led-government-a-yea-35-21.html 407 Ekantipur, “Supreme Court issues short-term interim order on Land Commission’s decision to abolish it,” Ekantipur, October 30, 2025, https://ekantipur.com/news/2025/10/30/en/supreme-court-issues-shortterm-interim-order-on-land-commissions-decision-to-abolish-it-56-24. html 408 Republica, “Govt simplifies procedures to reclaim land ownership, records of which were burnt during protests,” Republica, October 11, 2025, https://myrepublica.nagariknetwork.com/news/govtsimplifies-procedures-to-reclaim-land-ownership-records-of-whichwere--98-91.html 409 “परिपत्र”, Department of Land Management and Archive, Government of Nepal, Accessed on November 21, 2025, https://sindhuli. dolma.gov.np/notice-detail/t/%E0%A4%AA%E0%A4%B0%E0%A4%BF%E0 %A4%AA%E0%A4%A4%E0%A5%8D%E0%A4%B0-1760084824 410 Republica, “Govt amends Land-Use Regulations 2022 allowing land fragmentation on temporary use,” Republica, November 12, 2025,https://myrepublica.nagariknetwork.com/index.php/news/govtamends-land-use-regulations-2022-allowing-land-fragmentation-ontempor-37-56.html 411 New Business Age, “Government lifts ban on land subdivision in municipalities without land classification,” New Business Age, November 12, 2025, https://newbusinessage.com/news/46157/government-lifts-banon-land-subdivision-in-municipalities-without-land-classification/ 412 “Download / Monthly Revenue Collection”, Department of Land Management and Archive, Government of Nepal, Accessed on November 21, 2025, https://dolma.gov.np/office/dept/content/monthlyrevenue-collection-1698574893 ; Republica, “Gradual decline in real estate transaction resulting in decreased revenue,” Republica, November 21, 2025, https://myrepublica.nagariknetwork.com/news/gradual-decline-inreal-estate-transaction-resulting-in-decreased-revenue-79-78.html 413 RSS, “Gradual decline in real estate transaction resulting in decreased revenue,” Ratopati, November 21, 2025, https://english.ratopati. com/story/41846/gradual-decline-in-real-estate-transaction-resultingin-decreased-revenue 414

Republica. “LMC Installs Intelligent Traffic Lights at Five

NEFPORT ISSUE 63 – JANUARY 2026

Locations in Lalitpur.” myRepublica, October 21, 2025. https://myrepublica. nagariknetwork.com/news/lmc-installs-intelligent-traffic-lights-at-fivelocations-in-lalitpur-675fe5a2423a0.html

Suffered Loss of over Rs 25 Billion: HAN,” HimalPress, September 12, 2025, https://en.himalpress.com/hotel-sector-suffered-loss-of-over-rs-25billion-han/

415 Lalitpur Metropolitan City, Inauguration Program: Design Install Operate and Maintain (DIOM) Contract of Intelligent Traffic System in Lalitpur (Contract No. LMC/NCB/10/076/077), December 16, 2024, accessed [date you accessed it], https://lmc.gov.np/wp-content/ uploads/2025/06/ATCS-Inaugauration-1.pdf

440 “Nepal Reopens Kathmandu Airport After 24-Hour Shutdown,” The Kathmandu Post, September 11, 2025, https://kathmandupost.com/ money/2025/09/11/nepal-reopens-kathmandu-airport-after-24-hourshutdown

416

442 “Tourists whose visas expired after September 8 will get free visa regularization directly from the Airport Immigration Office,” Department of Immigration, Nepal, September 11, 2025, https://www. immigration.gov.np/en/post/tourists-whose-visas-expired-afterseptember-8-will-get-free-visa-regularization-3

Ibid

417 Adhikari, Rajkumar. “Smart Traffic Lights Lalitpur: Opportunities.” LinkedIn. Accessed November 24, 2025. https://www. linkedin.com/pulse/smart-traffic-lights-lalitpur-opportunities-rajkumaradhikari-rhqec/ 418

IBID

419 Nepal Tourism Board, Tourism Insight - September 2025, October 2025, https://trade.ntb.gov.np/wp-content/uploads/2025/10/ Tourism-Insight-September.pdf 420 The Himalayan Times, “Foreign Tourist Arrivals Drop by 18.3% in September,” October 9, 2025, https://thehimalayantimes.com/nepal/ foreign-tourist-arrivals-drop-by-183-percent-in-september 421 Nepal Tourism Board, Tourism Insight - September 2025, October 2025, https://trade.ntb.gov.np/wp-content/uploads/2025/10/ Tourism-Insight-September.pdf 422 Nepal Tourism Board, Tourism Insight - October 2025, November 2025, https://trade.ntb.gov.np/wp-content/uploads/2025/11/ Tourism-Insights-October.pdf 423 The Himalayan Times, “Tourist Arrivals Near Pre-Pandemic Levels; Nepal Records 128,443 Visitors in October,” November 3 2025, https://thehimalayantimes.com/business/tourist-arrivals-near-prepandemic-levels-nepal-records-128443-visitors-in-october 424 The Rising Nepal (TRN Online), “78,000 Foreign Tourists Visit Nepal During September,” October 7, 2025, https://risingnepaldaily.com/ news/69325 425

Ibid

426

Ibid

427 “Nepal Tourism Insights (October 2025),” Department of Tourism, Accessed on November 24, 2025, https://trade.ntb.gov.np/ downloads-cat/nepal-tourism-statistics/ 428

Ibid

429

Ibid

430 “Nepal Tourism Statistics, 2024,” Ministry of Culture, Tourism and Civil Aviation, Accessed on November 24, 2025, https://giwmscdnone. gov.np/media/pdf_upload/Nepal%20tourism%20statistics%202024_ w3mv58k.pdf 431 “Nepal Tourism Insights (October 2025),” Department of Tourism, Accessed on November 24, 2025, https://trade.ntb.gov.np/ downloads-cat/nepal-tourism-statistics/ 432 “Nepal Tourism Statistics, 2024,” Ministry of Culture, Tourism and Civil Aviation, Accessed on November 24, 2025, https://giwmscdnone. gov.np/media/pdf_upload/Nepal%20tourism%20statistics%202024_ w3mv58k.pdf

441

Ibid

443 “Tourists with expired visas after September 8 allowed free renewal at airport,” OnlineKhabar, September 11, 2025, https://english. onlinekhabar.com/tourists-with-expired-visas-after-september-8allowed-free-renewal-at-airport.html 444 “NTB Issues Advisory for Stranded Passengers at TIA,” New Business Age, September 9, 2025, https://www.newbusinessage.com/ news/45388/ntb-issues-advisory-for-stranded-passengers-at-tia/ 445 “Nepal Hotels Long for Tourists Spooked by Unrest,” The Kathmandu Post, October 15, 2025, https://kathmandupost.com/ money/2025/10/15/nepal-hotels-long-for-tourists-spooked-by-unrest 446 “Nepal Reopens Kathmandu Airport After 24-Hour Shutdown,” The Kathmandu Post, September 11, 2025, https://kathmandupost.com/ money/2025/09/11/nepal-reopens-kathmandu-airport-after-24-hourshutdown 447 “Nepal Hotels Long for Tourists Spooked by Unrest,” The Kathmandu Post, October 15, 2025, https://kathmandupost.com/ money/2025/10/15/nepal-hotels-long-for-tourists-spooked-by-unrest 448

Ibid

449 “Agriculture, Tourism in Eastern Hills in Crisis after Disaster,” The Kathmandu Post, October 17 2025, https://kathmandupost.com/ money/2025/10/17/agriculture-tourism-in-eastern-hills-in-crisis-afterdisaster ; “Mechi, BP Highways Closed; Tourism Routes Hit by Landslides,” The Rising Nepal, October 28 2025, https://risingnepaldaily.com/ news/70477 450 “Rains Affect Pokhara’s Tourism Business,” MyRepublica, October 2025, https://myrepublica.nagariknetwork.com/news/rainsaffect-pokharas-tourism-business-96-45.html 451 “Tihar Tourism Rush Fills Chitwan and Pokhara but Briefly,” The Kathmandu Post, October 27 2025, https://kathmandupost.com/ money/2025/10/27/tihar-tourism-rush-fills-chitwan-and-pokhara-butbriefly 452 “Flood, Landslide Crisis Hits Tourist Routes Across Nepal,” The Annapurna Express, October 2025, https://theannapurnaexpress.com/ story/59094/ 453 “40,000 Plus Tourists Visit Mustang in Past 10 Days,” The Rising Nepal, October 29 2025, https://risingnepaldaily.com/news/70265 454 “Nearly 7,000 Tourists Visit Mustang in a Single Day,” The Himalayan Times, October 25 2025, https://thehimalayantimes.com/ nepal/nearly-7000-tourists-flock-to-mustang-in-a-day

433

Ibid

434

Ibid

435

Ibid

455 “Rescue Operation Launched for 15 Tourists Trapped in Mustang,” Nepal News, October 25 2025, https://english.nepalnews.com/s/ travel-tourism/rescue-operation-launched-for-15-tourists-trapped-inmustang/

436

Ibid

456

Ibid

457

Ibid

437 “Current Macroeconomic and Financial Situation (Based on three months data of 2025/26),” Nepal Rastra Bank, November 16, 2025, https://www.nrb.org.np/category/current-macroeconomic-situation/?dep artment=red&fy=2082-83&subcategory=three-months 438 “How 5-Star Luxury Hotels Like Hilton Kathmandu and Hyatt Regency Fell to Nepal Protests,” NDTV, September 12, 2025, https://www. ndtv.com/lifestyle/how-5-star-luxury-hotels-like-hilton-kathmanduand-hyatt-regency-fell-to-nepal-protests-9263433 439 “Tourism Rebounds as Nepal Restores Its Rhythm,” The Himalayan Times, September 18, 2025, https://thehimalayantimes.com/ nepal/tourism-rebounds-as-nepal-restores-its-rhythm ; “Hotel Sector

458 Sangam Prasain, “New Everest permit fee of $15,000 takes effect,” The Kathmandu Post, September 2, 2025, https://kathmandupost. com/money/2025/09/02/new-everest-permit-fee-of-15-000-takeseffect 459

Ibid

460

Ibid

461 “Nepal’s Permit Shake-Up – What It Means for Climbers and Communities,” Third Eye Adventure Blog, September 3, 2025, https://www.thirdeyeadventure.com/blog/nepals-permit-shake-

93

94

DOCKING NEPAL’S ECONOMIC ANALYSIS

up-by-new-rule-2026?srsltid=AfmBOooHfGPN4BFEEoAYj_3QU64tjXQTVJbe2vYzNlCzpUbHPtRl-A0

November 7, 2025, https://trade.ntb.gov.np/nepal-showcases-itssustainable-tourism-vision-at-world-travel-market-wtm-london-2025/

462

Ibid

489

Ibid

463

Ibid

490

Ibid

464 “पदमार्ग मापदण्ड सम्बन्धी दिग्दर्शन, २०८२, Ministry of Culture, Tourism and Civil Aviation,” September 8, 2025, https://giwmscdnone. gov.np/media/pdf_upload/पदमार्ग%20मापदण्ड%20सम्बन्धी%20दिग्दर्शन_ zudmiop.pdf 465

Ibid

466

Ibid

467

Ibid

468

Ibid

469

Ibid

470 “NAC Operates Direct Flight to Guangzhou,” The Himalayan Times, September 28, 2025, https://thehimalayantimes.com/nepal/nacoperates-direct-flight-to-guangzhou 471 Sangam Prasai, "Nepal Airlines to Launch Guangzhou Flights after 15-Year Wait," The Kathmandu Post, September 16, 2025, https:// kathmandupost.com/money/2025/09/16/nepal-airlines-to-launchguangzhou-flights-after-15-year-wait 472 “NAC begins Kathmandu-Guangzhou direct flight from Thursday,” OnlineKhabar, September 21, 2025, https://english.onlinekhabar. com/nac-begins-kathmandu-guangzhou-direct-flight-from-thursday. html 473 “Buddha Air to resume Kolkata flights three times a week,” myRepublica, September 23, 2025, https://myrepublica.nagariknetwork. com/news/buddha-air-resumes-kolkata-flights-three-times-aweek-49-60.html 474 “Buddha Air to increase Kathmandu–Kolkata flights to four per week,” myRepublica, October 31, 2025, https://www.myrepublica. nagariknetwork.com/news/buddha-air-to-increase-kathmandu-kolkataflights-to-four-per-week-56-98.html 475 “85-min shortcut: Kathmandu to Kolkata in record time; find all details here,” Times of India, April 24, 2025, https://timesofindia.indiatimes. com/life-style/travel/news/85-min-shortcut-kathmandu-to-kolkata-inrecord-time-find-all-details-here/articleshow/120551771.cms 476

Ibid

477 “Thai Air Asia resumes Bangkok-Bhairahawa-Bangkok flights,” The Annapurna Express, October 26, 2025, https://theannapurnaexpress. com/story/59502/

491 “AI for tourism & hospitality workshop begins in Kathmandu,” The Himalayan Times, November 17, 2025, https://thehimalayantimes.com/ kathmandu/ai-for-tourism-hospitality-workshop-begins-in-kathmandu 492 “AI for Tourism and Hospitality Excellence Training Begins in Kathmandu,” B360 Nepal, November 17, 2025, https://www.b360nepal. com/detail/26963/ai-for-tourism-and-hospitality-excellence-trainingbegins-in-kathmandu 493 “AI for Tourism & Hospitality Excellence Workshop Kicks Off in Kathmandu,” Nepal Tourism Board, November 17, 2025, https://trade.ntb. gov.np/ai-for-tourism-hospitality-excellence-workshop-kicks-off-inkathmandu/ 494

Ibid

495 “Mindtrip partners with The Bahamas to unlock unique adventures through AI,” Breaking Travel News, November 2025, https:// www.breakingtravelnews.com/news/article/mindtrip-partners-with-thebahamas-to-unlock-unique-adventures-through-ai/ 496 “Mindtrip Partners With The Bahamas to Unlock One-of-aKind Adventures Through the Power of AI,” Mindtrip, November 10, 2025, https://mindtrip.ai/press/bahamas 497 “Nepal Rastra Bank, Current Macroeconomic and Financial Situation of Nepal Based on three months’ data Ending Mid-October, 2025/26”, November 16, 2025. https://www.nrb.org.np/contents/uploads/2025/11/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-ThreeMonth-data-of-2025.26.pdf 498 “Nepse Alpha Earnings Scoreboard”, nepsealpha, accessed 24 Novemberr, 2025, https://nepsealpha.com 499 “Nepal Rastra Bank, Current Macroeconomic and Financial Situation of Nepal Based on three months’ data Ending Mid-October, 2025/26”, November 16, 2025.

478 “GBIA: Thai AirAsia International Flights set to resume,” The Rising Nepal, October 12, 2025, https://risingnepaldaily.com/news/69504

https://www.nrb.org.np/contents/uploads/2025/11/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-ThreeMonth-data-of-2025.26.pdf

479

Ibid

500

Ibid

480

Ibid

501

Ibid

502

Ibid

481 “State-of-the-art ‘Terminal’ building at Nepalgunj Airport,” The Rising Nepal, November 7, 2025, https://risingnepaldaily.com/news/70772 482 “Nepalgunj Airport Gets Rs 2.98 Billion Terminal Building,” New Business Age, November 7, 2025, https://newbusinessage.com/ news/46106/nepalgunj-airport-gets-rs-2-98-billion-terminal-building/ 483

Ibid

484 “बंगलादे शमा पर्यटन बोर्डको सन्देश : पर्यटक स्वागत गर्न नेपाल तयार छ,” OnlineKhabar, September 21, 2025, https://www.onlinekhabar. com/2025/09/1769127/message-from-tourism-board-to-bangladeshnepal-is-ready-to-welcome-tourists 485 “PM Karki insists on promotion of touristic sites,” The Rising Nepal, September 27, 2025, https://risingnepaldaily.com/news/68943 486 “46th World Tourism Day Being Celebrated With Grand Celebration Today,” The Himalayan Times, September 27, 2025, https:// thehimalayantimes.com/nepal/46th-world-tourism-day-is-beingcelebrated-with-grand-celebration 487 “Nepal at Tourism Expo Japan 2025 in Aichi,” Nepal Tourism Board, September 28, 2025, https://trade.ntb.gov.np/nepal-at-tourismexpo-japan-2025-in-aichi/ 488 “Nepal Showcases Its Sustainable Tourism Vision at World Travel Market (WTM) London 2025,” Nepal Tourism Board,

503 “Government prepares to return deposits of cooperative victims”, myRepublica, November 23, 2025. https://myrepublica.nagariknetwork.com/news/government-prepares-toreturn-deposits-of-cooperative-victims-86-36.html 504

Ibid

505

Ibid

506 “Nepal retains stable sovereign rating of BB- despite recent unrest and natural calamities”, November 19, 2025. https://myrepublica.nagariknetwork.com/news/nepal-continues-withstable-sovereign-rating-of-bb-despite-recent-unrest-an-91-69.html 507

Ibid

508

Ibid

509

Ibid

510 “NRB dissatisfied with financial reports of commercial banks; rejects reports of eight banks”, myRepublica, November 13, 2025. https://myrepublica.nagariknetwork.com/news/nrb-dissatisfied-withfinancial-reports-of-commercial-banks-rejects-reports-52-17.html 511

Ibid

NEFPORT ISSUE 63 – JANUARY 2026

512 “NPLs of commercial banks reach as high as 7.39 percent amid rising bad debts”, myRepublica, November 10, 2025.

https://myrepublica.nagariknetwork.com/news/govt-forms-a-studypanel-to-recommend-over-restructuring-of-nepse-19-25.html

https://myrepublica.nagariknetwork.com/news/npl-of-commercialbanks-reaches-as-high-as-739-percent-amid-rising-bad-debt-64-91. html”

535

Ibid

536

Ibid

513

Ibid

537 “Loans against shares increase by 3.02 percent to Rs 144.95 billion in Q1”, November 16, 2025.

514 “NRB rolls out national payment ecosystem: One network for all digital transactions”, Fiscal Nepal, October 13, 2025.

https://myrepublica.nagariknetwork.com/news/loans-against-sharesincrease-by-302-percent-to-rs-14495-billion-in-q1-81-23.html

https://www.fiscalnepal.com/2025/10/13/22461/nrb-rolls-out-nationalpayment-ecosystem-one-network-for-all-digital-transactions/

538

Ibid

539

Ibid

540

Ibid

515

Ibid

516

Ibid

517

Ibid

518 “RBI Allows Cross-Border Rupee Loans: What It Means for Nepal”, New Business Age, October 6, 2025. https://www.newbusinessage.com/news/45703/rbi-allows-cross-borderrupee-loans-what-it-means-for-nepal/ 519

Ibid

520

Ibid

521 “Indians Banks Open Loans for Nepalis: Easier Credit May Boost Imports, Threaten Domestic Banks”, Fiscal Nepal, October 8, 2025, https://www.fiscalnepal.com/2025/10/08/22386/indians-banksopen-loans-for-nepalis-easier-credit-may-boost-imports-threatendomestic-banks/ 522

Ibid

523 “Current Macroeconomic and Financial Situation (Based on Three Months’ Data Ending Mid-October 2025)”, Nepal Rastra Bank, November 2025 ,16. https://www.nrb.org.np/contents/uploads/11/2025/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-ThreeMonth-data-of2025.26-.pdf 524

Ibid

525

Ibid

526 “Datewise Indices”, Nepal Stock Exchange, November ,30 2025. https://www.nepalstock.com.np/indices 527

Ibid

528 “SEBON Issues 10th Amendment to Securities Issuance and Allotment Guidelines 2082”, November 25, 2025. https://www.sharesansar.com/newsdetail/sebon-issues10th-amendment-to-securities-issuance-and-allotmentguidelines-2082-2025-11-25 529

Ibid

530

Ibid

531 “NRB moves to ease lengthy promoter share transfer rules as banks face months-long delays”, Fiscal Nepal, November 24, 2025. https://www.fiscalnepal.com/2025/11/24/23014/nrb-moves-to-easelengthy-promoter-share-transfer-rules-as-banks-face-months-longdelays/ 532

Ibid

533

Ibid

534 “Govt forms study panel to recommend NEPSE restructuring”, November 21, 2025.

95

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