AGP Executive Report

Monsoon Watch: Nepal may see a delayed monsoon as El Nino strengthens, but ICIMOD warns the season can still turn dangerous with short bursts of intense rain, raising flood and landslide risks. Electricity Governance: Nepal Electricity Authority urges customers to use official service channels only and report any irregular fees or misconduct. Tea Crisis: India’s new testing rules have shut down 65 Ilam tea factories, with large stocks stuck and farmers’ payments at risk. Trade Money Laundering: NRB flags rising trade-based money laundering risks, including over- and under-invoicing in cross-border deals. Provincial Budgets: All seven provinces unveiled combined budgets of about Rs 293 billion, with Bagmati leading at around Rs 67.93 billion and a strong push for infrastructure and governance. Minimum Support Price: The agriculture ministry calls for proper implementation of the spring paddy MSP at Rs 2,866.41 per quintal. Foreign Policy: FM Shisir Khanal meets China’s Wang Yi in Beijing, with China pledging faster project delivery and support for Nepal’s sovereignty and governance priorities. Displaced Families: Evicted landless families in Kathmandu demand resettlement and land ownership rights, alleging unsafe holding conditions and lack of basic services. Border Tension (Susta): Talks begin after alleged SSB entry into Nepali territory, with locals pressing for a diplomatic long-term solution. Sports & Culture: Nepal’s national skateboard championship wraps at Yama Buddha Skate Park, while a peace ambassador team arrives in Lumbini.

Political Reform Watch: Nepal’s rapper-turned-PM Balendra Shah is pushing fast action against illegal settlements, winning young supporters but drawing due-process concerns as critics warn reforms may be too aggressive. Parliament & Budget Process: House of Representatives finished appropriation-heading talks for nine ministries; next day will cover more ministries and key budget allocations. Foreign Affairs: FM Shishir Khanal met CPC International Department leader Liu Haixing in Beijing, with China reiterating support for Nepal’s sovereignty and ties. Public Services & Governance: Vice-chancellor appointments at six health science institutes are delayed, leaving acting leadership in place. Digital Safety: Nepal Telecom warns of fraudulent SMS impersonating banks and digital payment services, urging users not to share OTPs and to verify via official apps. Economy & Trade: Tea producers in Ilam shut factories after India’s stricter quality-testing SOP disrupted exports, threatening market collapse. Energy & Infrastructure: Government finalized the first phase to import 50,000 metric tons of chemical fertilizer from India; Finance Minister says post-Jana Andolan slowdown needs budget-driven stimulus. Health & Safety: Mysuru pub fire killed two (including a Nepal worker) and injured six; short circuit suspected. Sports (Nepal-linked): Nepal’s T20 World Cup coverage highlights New Zealand vs Sri Lanka and England vs Ireland matchups.

Monsoon & disaster risk: ICIMOD warns that even with a below-normal monsoon forecast for parts of the Hindu Kush Himalaya, short bursts of intense rain, landslides and flash floods remain a serious threat. Weather: The Meteorological Forecasting Division says moderate rain with thunder and lightning may hit parts of Koshi, Bagmati, Gandaki and Lumbini, with partly cloudy conditions elsewhere. Accident: A man died after being electrocuted while using a drill machine in Makwanpur. Bangladesh-Nepal ties: Bangladesh Embassy marks “Mango Diplomacy,” distributing 1,750 kg of mangoes to Nepali leaders and diplomats. Mobility expo: NAIMA says 49 brands have secured stalls for NAIMA Nepal Mobility Expo 2026 in Kathmandu (Aug 11–16). Pilgrimage: Kailash Mansarovar pilgrims via Humla have crossed 3,700 this season, with daily arrivals rising. Justice & rights: Supreme Court orders removal of encroachments on sidewalks. Politics/border: Opposition in HoR presses government for clarifications over border remarks and alleged Indian SSB helicopter/entry issues. Energy & development: Nepal Electricity Authority has started supplying power to Kanjin Gumba and nearby Langtang areas via its central transmission line. Aviation: Airline Operators Association Nepal and Aeronautical Society sign an MoU to unify and upgrade Nepal’s aviation sector. Infrastructure controversy: Minister Sunil Lamsal’s harsh remarks on contractors delay spark debate. Culture: French Embassy celebrates Cannes Jury Prize win for Nepali film “Elephants in the Fog.”

NEPSE Slide: Nepal Stock Exchange fell 4.00 points to 2,724.03 on Sunday; turnover hit Rs 1.56 billion, with Sopan Pharmaceuticals and Apollo Hydropower among top gainers. Budget Pressure: The government’s Rs 1,580bn revenue target for 2026/27 is under scrutiny as current collections lag—raising doubts about whether the ambitious spending plan can be funded. Industrial Estates Dues: After a government warning, industries started clearing long-pending fees; over Rs 10 million was paid, but more than 300 firms still owe over Rs 880 million. KMC Safety and Health Push: Kathmandu Metropolitan City plans more street and high-mast lamps, smart monitoring, and expanded free health services, including Ayurveda and alternative medicine programs. Banking Watch: Nepal Rastra Bank flagged governance failures and bad-loan risks, while lending against share collateral rose 15.5% to Rs 162.53bn. Tunnel Deadline: Nagdhunga–Sisnekhola Tunnel Road is set for mid-July opening after 99.5% construction completion and final safety preparations. Energy Diplomacy: Nepal’s 40MW electricity exports to Bangladesh begin, but an extra 20MW push was stalled after India cited transmission capacity limits. Health and Rights: HIV/TB stigma and discrimination remain serious despite better services; eye-care experts also warn blindness risk persists.

Monsoon Risk Watch: ICIMOD warns that even with a below-normal monsoon forecast for parts of the Hindu Kush Himalaya, short bursts of intense rain can still trigger flash floods and landslides, with drought and flood risks rising together. KMC Monsoon Plan: Kathmandu Metropolitan City approved its monsoon preparedness and response action plan, stressing drills, clear roles, and readiness of materials and coordination to cut flood impacts. Public Health—Snakebites & Nutrition: Monsoon-era snakebite risk remains high due to delayed treatment and limited antivenom access, while Banke reports 78 malnourished children under five in one ward, alongside nutritional deficiencies among pregnant women. Food & Economy: Nepal’s food and other crop production fell 6.76% in the first six months of FY 2025/26, with declines in spice crops and weaker vegetable growth. Trade Pressure—Tea: Ilam tea processors say India’s stricter import checks could force factory shutdowns from June 15 unless restrictions are eased. Road Safety: Nepal Police recorded 11 deaths and 119 injuries in road accidents in 24 hours, and Kathmandu Valley traffic police penalized 2,408 motorists, collecting Rs 458,000. Rights & Society: Kathmandu’s Pride parade drew crowds after the ministry renaming to include “sexual minorities,” with calls for same-sex marriage and citizenship reforms. Diplomacy: Foreign Minister Shishir Khanal leaves for a four-day visit to China, including talks to expand Nepal–China cooperation and an investment conference in Beijing.

HIV & TB Stigma: Stakeholders in Kathmandu say stigma and discrimination still block equal, respectful HIV and TB services despite gains in prevention and treatment, urging rights-focused reporting and stronger institutional support. Trade Unions in Court: Nepal’s Supreme Court declined to stop the government’s move to dissolve trade unions in government agencies, clearing the way for enforcement. Nepal–India Rail Talks: In Kathmandu, Nepal and India reviewed cross-border railway projects, including progress on Raxaul–Kathmandu and plans for passenger services on Janakpur–Ayodhya. Tunnel Push: The Infrastructure Ministry allocated about Rs 670 million for feasibility and construction of around a dozen tunnel road projects in 2026/27. Market Watch: NEPSE fell for the week, wiping about Rs 50 billion in investor wealth as the index dropped 31 points. Gold Slips: Gold prices in Nepal dropped Rs 17,000 per tola over the week amid customs-duty changes and Middle East tensions. Governance Access: Government websites are now made more accessibility-friendly with an inbuilt tool for easier use by people with disabilities. Drugs Seizures: Police arrested 13 people with narcotics and prescription-controlled medicines, with investigations ongoing.

Energy Sector Push: Nepal is opening the energy sector for private investment, with the government signaling stricter action against license holders who delay projects and aiming to end “license raj” while expanding transmission and power trade. Clean Air Plan: The Nepal Clean Air and Prosperity Project (NCAP) is moving toward implementation from FY 2026/27, backed by World Bank support, to cut industrial pollution and improve monitoring. IPPAN Leadership: IPPAN has elected a new executive committee under Mohan Kumar Dangi, with energy reforms and investment rules a key theme at the AGM. Public Land Protection: The Cabinet has decided to implement the long-delayed Rawal Commission report on encroached public land and to maintain systematic land registers. Healthcare Access Gap: Despite a free-bed policy for the poor, thousands of designated free hospital beds remain vacant, leaving vulnerable patients unable to get care. Road Safety: A bus crash in Kavre’s Buchchakot killed eight and injured 16, with the cause still under investigation. Weather Watch: Forecasts warn of cloudy skies with possible heavy rain and thunderstorms in parts of the country today. Nepal-India Ties: India is funding a hospital in Humla’s Chankheli, and both sides reviewed cross-border railway projects in Kathmandu. Sports: Nepal Premier League franchise Chitwan Rhinos retained seven key players ahead of the next season.

Rabies Alert: Nepal’s rabies vaccine shortage is forcing patients to be turned away at Sukraraj Hospital and other district facilities, raising fears of a public health emergency as demand runs into the thousands daily. Public Transport Overhaul: Kathmandu Valley’s transport system is set for major restructuring under the KUTP plan, targeting route duplication, weak regulation, and low service quality. Consumer Crackdown: The Department of Commerce, Supply and Consumer Protection fined 12 firms, including Singha Durbar’s Central Canteen, over quality and labeling violations. Land Recovery Push: Cabinet decided to implement the Rawal Commission report, clearing the way to reclaim about 1,859 ropani of encroached public land in Kathmandu. Child Soldiers Ban: The Supreme Court ordered the government to enact laws fully prohibiting recruitment or use of children under 18 in any military force. Energy Policy Shift: The Energy Minister says reforms are opening the door for private sector roles, with new bills planned for the current and upcoming parliamentary sessions. Foreign Affairs: FM Shishir Khanal will visit China June 14–17 for talks and an investment conference. Road Safety: A bus crash in Kavrepalanchok killed eight and injured 16; another bus accident in Dhankuta left 12 hurt.

Aviation & Tourism: flydubai will start a new daily Dubai–Pokhara service from Sept 23, becoming the first carrier to fly directly from the UAE to Nepal’s tourism hub. Banking & Economy: Nepal Rastra Bank data shows BFIs’ deposits rose 9.4% to Rs 7,949.28 billion by mid-May, while private-sector credit grew 5.7%. Migrant Workers: Kamlesh Paswan returned home after being missing in Dubai for months; his family says he was detained in a drug-related case and later secured release. Health Regulation: Nepal Medical Council suspended three Chinese doctors’ temporary registrations over links to an illegally operating Baluwatar hospital, with deportation steps underway. Cross-border Payments: India–Nepal launched a UPI–NPI instant remittance link, letting people transfer money via mobile apps without currency-exchange delays. Public Safety & Rights: Nepal marks World Day Against Child Labour with a “Red card” theme, urging stronger education, social protection and enforcement. Social Issues: Separate opinion pieces push for safer, fairer public transport and call out ongoing harassment of women commuters. Environment & Tourism Pressure: A report warns that rhododendron tourism in eastern Nepal is feeding an unregulated market for rhododendron liquor. Politics & Governance: PM Balendra Shah called a Cabinet meeting, the first since Sudan Gurung’s reappointment as Home Minister.

Border Diplomacy: Foreign Minister Shishir Khanal told the National Assembly PM Balendra Shah’s May 31 border remarks were about “cross border occupation,” and Nepal is not seeking third-party mediation, only access to historical reference materials; he also said the Nepal–India Joint Working Group on Border Management will meet in August and joint teams are repairing missing border pillars. Parliament Watch: Lawmakers in the NA demanded clarification and removal of sensitive border remarks from records, while in the HoR MPs raised concerns over house demolitions, caste discrimination, and customs irregularities. Home Affairs & Housing: Home Minister Sudhan Gurung inspected Balaju’s “holding center” for squatters, apologized to evicted families, and ordered police support to address education and management issues. Economy & Markets: NEPSE fell 8.14 points to 2,728.03; NRB reported foreign exchange reserves crossed Rs 3.7 trillion and started a study toward a sovereign wealth fund. Finance & Governance: Finance Secretary explained budget tax-rate finalization timing; Finance Minister Wagle denied EV tax information leakage rumours and defended the budget’s good-governance agenda. Health & Regulation: Nepal Medical Council sealed Maria Hospital for operating without permit; pregabalin sales now require prescriptions; slum women in Kathmandu Valley show low postnatal care uptake, and vaccine wastage losses were flagged. Crime & Courts: Govt filed a Rs 421.4 million Jagdamba Steels loan misuse case; police also linked a Nepal-based burglary gang using domestic workers to luxury-villa thefts in Hyderabad. Energy Sector: IPPAN election saw several posts filled unopposed, while an energy leader pushed for clearer budget support vs non-budget work and faster transmission/distribution reforms.

Parliament & Border Row: Nepal’s House of Representatives resumed after days of obstruction, with budget deliberations restarting once Foreign Minister Shisir Khanal clarified Prime Minister Balendra Shah’s border remarks and details from his India visit. Diplomacy Update: Khanal told lawmakers his India trip focused on trade, energy, water, connectivity, border management and regional security, yielding joint statements on cross-border digital payments and digital public infrastructure. Monsoon Outlook: Experts warn South Asia could face serious hazards this monsoon despite a drier overall outlook, citing short intense rains that can still trigger floods and landslides. Swayambhunath Restoration: Workers have started removing a thick lime layer from the dome of Swayambhunath Stupa, using wooden tools to protect the historic structure. Economy & Markets: Gold and silver prices fell in Nepal; Kalimati set wholesale rates for fruits and vegetables for Jestha 28. Finance Minister Under Fire: Swarnim Wagle says he welcomes investigation into alleged budget errors and challenges claims of EV information leaks. Local Enforcement: Traffic police penalized 2,297 drivers in 24 hours, collecting about Rs 2.02 million. Sports: Nepal women’s team was knocked out of ACC Women’s T20 Asia Cup qualifiers after a Thailand defeat; Thailand, UAE, Hong Kong and Indonesia advanced from quarter-finals. Energy Infrastructure: MCA-Nepal began construction of two substations and a 297-km transmission line under the MCC Nepal Compact. Culture & Media Rights: MRCSN distributed royalties to Nepali songwriters and composers, with plans to let members transfer royalties directly to bank accounts.

Nepal–India Border Row: Foreign Minister Shishir Khanal told the House that Nepal is not seeking any third-party mediation over the border, saying the issue is bilateral and will be handled through diplomatic dialogue and historical treaties. Parliament Watch: With opposition obstruction ended, the HoR resumed and MPs used the emergency hour to raise human trafficking, violence against women, foreign employment fraud and religious conversion concerns. Budget & Governance: Finance Minister Swarnim Wagle denied claims of budget information leaks and said amendments were only corrections after the budget was presented, while he also alleged a coordinated smear campaign. Civil Service & Rights: The government scrapped civil servants’ trade union rights via a Civil Service Regulations amendment. Elections & Compliance: RSP’s Bagmati provincial convention was halted over a voter-list dispute, and the Property Inquiry Commission extended asset-declaration deadlines to mid-July. New Ministry: The newly formed Ministry of Science, Technology and Innovation has started work under Minister Mahabir Pun. Dubai Crash Aid: UAE-based Burjeel Holdings CEO Shamsheer Vayalil announced a ₹2.6 crore recovery package for victims’ families and injured workers, including Nepalis. Sports: Nepal women’s team was eliminated from the ACC T20 Asia Cup qualifying race after losing to Thailand.

Cabinet Shake-up: Nepal PM Balendra “Balen” inducted Sudan Gurung as Home Minister and Mahabir Pun as Science, Technology and Innovation Minister after a probe cleared Gurung, bringing the cabinet to 17. Royal Massacre Probe: Gurung, on taking charge, ordered the reopening of the 2001 Royal Palace massacre file and said he will review pending cases linked to the Gen-Z movement. Bird Flu Alert: Emergency steps are underway as H5N1 has been confirmed in 10 districts; officials say 515,000 birds from 72 farms were destroyed and Kathmandu Valley remains vulnerable but largely controlled elsewhere. Inflation Watch: Nepal’s consumer inflation hit 5.04% in mid-May, driven by petroleum price hikes after US-Iran tensions, with petrol and diesel jumping sharply. Public Health & Safety: Road crashes in the last 24 hours left 6 dead and 145 injured; Kathmandu also declared its jurisdiction free of street-dependent homeless people. Weather: Rain and thunderstorms are likely today in several provinces, with hot conditions in parts of the Tarai. Economy: NRB reports foreign reserves surged to Rs 3,704.55 billion in mid-May, supported by strong remittances and a current account/BoP surplus.

Everest Update: Nepali mountaineer Dawa Sherpa, who survived six days after being abandoned on Everest, has been moved from ICU to a ward in Kathmandu and is now able to speak a little and eat, as doctors monitor frostbite, dehydration and a fractured thigh bone. Government & Governance: Cabinet reshuffle puts Sudhan Gurung back as Home Minister and Mahabir Pun as Science, Technology and Innovation Minister; Communications Ministry says most 100-point governance reforms are completed and moving into implementation. Parliament Watch: National Assembly lawmakers demand a probe after allegations that tax rates were altered in the budget, while NA Chair Narayan Dahal urges opposition to help resume House meetings. Health Policy: Health Minister Nisha Mehta says Nepal will make a “fresh start” on the health insurance scheme with new modalities and push to clear pending payments by Ashar. Economy & Trade: Remittances rose 41.2% to Rs 1,916.90 billion in 10 months; foreign reserves also improved, but trade deficit widened 14.9% as imports outpaced exports and inflation hit 5.04% in mid-May. Dairy & Industry: Agriculture Minister Gita Chaudhary calls for restructuring the National Dairy Development Board and cabinet backs nationwide promotion of DDC products. Crime & Cross-border: Cyberabad police in India arrested a Nepali couple and others over a Gachibowli villa burglary involving kilograms of gold and silver.

Street Dwellers Drive: Kathmandu Metropolitan City declared its area free of street dwellers who live by begging, signing an agreement with Nepal Police, the District Administration Office and Manavsewa Ashram to manage those found in public places through an integrated system. Hydropower Push: Construction has started for the 180-MW Kaligandaki Gorge Hydropower Project in Myagdi, with a 5.6-km tunnel and a target completion in four years. Cabinet Update: The government endorsed the Civil Service (16th Amendment) Regulation, 2083, and formed a 9-member ad hoc committee to manage leadership and managerial affairs at the Nepal Red Cross Society. Anti-Corruption: CIAA filed a corruption case against Birgunj Metropolitan Mayor Rajeshman Singh and others over alleged false birth registration linked to citizenship. Climate & Food Security: WFP launched the Adaptation Fund Climate Innovation Accelerator, backing Nepal startups with support to pilot climate-resilient solutions for farmers and food systems. Monsoon Watch: Meteorologists say monsoon may arrive a few days later than last year, with light rain expected in parts of the country between June 10 and 12. Local Health: Namkha Rural Municipality in Humla was declared fully immunized for children up to 59 months. Finance Transfers: Nepal allocated Rs 424.27 billion for intergovernmental fiscal transfers to provinces and local levels for FY 2026/27.

Traffic & Public Safety: Shram Sanskriti Party chair Harka Sampang (Harka Raj Rai) was fined after traffic police said he rode recklessly while recording a video on his mobile, following public complaints. Health System Strain: Bir Hospital’s CT scan services were shut for a month after both machines broke down; patients are being pushed to the Trauma Center and private hospitals, raising costs and congestion. Economy & Markets: NEPSE slid 20.27 points to close at 2,735.41 as trading turnover fell sharply; only the finance subgroup rose. Innovation Push: The government allocated nearly Rs 4 billion for science, technology and innovation, including Rs 500 million for a Nepal Enterprise Facility to back startups and SMEs. Energy Dues Recovery: The government says Rs 26.95 billion in arrears remain from 61 dedicated feeder/trunk line users, and the energy ministry has ordered NEA to prioritize collection. Insurance Backlog: Nepal Insurance Authority reported 543 pending insurance complaints as of mid-May, with a slow pace of resolution despite a judicial bench setup. Politics & Parliament: Opposition obstructed the HoR over PM Balendra Shah’s border remarks; the session was adjourned and postponed again. Local Autonomy Demand: Janamat Party staged protests at Maitighar and submitted a memorandum calling for full implementation of agreements and constitutional rights for local governments. Sports: Nepal beat Hong Kong in the Asian Games qualifier final (DLS) to win the trophy. Infrastructure: Nagdhunga–Sisnekhola tunnel operations are set for the second week of August, with preparations and staffing underway.