AGP Executive Report

Economy Watch: Nepal’s Q3 growth is estimated at 3.51%, driven mainly by electricity and gas (up 24.88%), with banking/insurance and transport also rising, while manufacturing and parts of public administration lag. ADB Deal: Finance Ministry and the Asian Development Bank signed $165 million in financing—$115m for climate-resilient water supply and sewerage, and $50m for customs modernisation and logistics reforms. Parliament & Governance: Speaker Dol Prasad Aryal ordered the government to respond to MPs’ emergency and zero-hour concerns, especially on flood/landslide damage and disaster preparedness; National Assembly lawmakers also pressed for Dalit rights, road safety, inflation control, gender equality and tougher traffic enforcement. Public Services: The government plans to print excise stamps, citizenship certificates and national ID cards domestically from next fiscal year, expanding the Security Printing Centre with Rs 220m. Labour & Youth: Labour Minister Ramji Yadav highlighted youth empowerment, safer foreign employment, and domestic job support, including returnee counselling and labour inspections. Security & Safety: Kathmandu Valley Police launched a week-long campaign against narcotics and human trafficking around Gongabu Bus Park. Weather: Light to moderate rain is ongoing in parts of the hills including the Kathmandu Valley, with possible heavier rain in a few places. Economy Markets: NEPSE fell 26.29 points (0.99%) with turnover down to Rs 3.55 billion.

Gorkhapatra Corporation Reform: New GM Hikmat Bahadur Rawal took office and vowed to strengthen and reform GC with a focus on digital and economic transformation, starting with changes in content and newsroom mindset. ADB Engagement: ADB President Masaro Kanda arrived in Kathmandu for meetings with PM Balendra Shah and Finance Minister Swarnim Wagle, plus visits to ADB-backed projects. Foreign Employment Fraud: Police arrested two men over a Rs 3.9 million overseas job scam, handing cases to the Department of Foreign Employment, while separate anti-drug raids led to more arrests. Monsoon & Flood Alerts: Meteorology warned of moderate to heavy rain with thunderstorms and possible flash floods in small rivers across 14 districts, urging people near riverbanks to stay alert. Parliament & Media: Live streaming of the House meeting was disrupted by technical issues; the National Assembly is set to take up the Appropriation Bill with ministers responding to budget questions. Politics & Governance: Nepali Congress MPs hit the government’s first 100 days over service delivery and landless evictions, while RPP and other lawmakers raised concerns about state absence during Karnali disaster response. Economy & Trade: Tax audit disputes are back as businesses warn of “full audit” returning; meanwhile, India’s curbs keep Nepal’s tea exports in limbo even as some shipments resume. Infrastructure Update: Progress continues on the Nagdhunga–Mugling road expansion, with major portions blacktopped and targets tied to monsoon conditions. Culture & Sports: “Nagabandham” released in cinemas; Sarwanam Library opened; Nepali bodybuilders returned with multiple medals from Bhutan.

Banking & Awards: Nepal SBI Bank won four Asian Banking & Finance Awards in Singapore, including Domestic Liquidity Management and Trade Finance Bank of the Year, plus Retail and SME honours. Cross-border Crime: Indian authorities filed a case against 27 Nepalis in Uttar Pradesh over alleged Aadhaar and benefits fraud using duplicate/false identity records. Monetary Policy Debate: Business groups and former NRB governors urged a timely, growth-oriented monetary policy for 2026/27, warning against tightening when credit demand is weak and banks hold excess liquidity. Tax Compliance: Nepal made PAN registration compulsory for Indian citizens running businesses in Nepal, aiming to bring small enterprises into the tax system. Energy Update: The 22 MW Seti Khola Hydropower Project began test production in Kaski, with commercial output expected after 15 days of trials. Tourism & Economy: Domestic tourism contributed 2.65% to GDP in FY 2024/25, while Nepal retained its World Bank “lower middle income” status. Trade Shock: India’s safeguard duties cut Nepal’s iron and steel exports to India by about two-thirds, raising fears for jobs and revenue. Road Safety & Enforcement: Kathmandu Valley traffic police fined 1,813 drivers in 24 hours and expanded tech-based monitoring using CCTV and ANPR. Governance Watch: As the government marks 100 days, NC leaders and stakeholders trade accusations over procedure, constitutional sensitivity, and landless resettlement delays. Weather: Monsoon conditions persist with moderate to heavy rain and thunderstorms expected in several provinces.

Farmer Rights Drive: Nepal’s nationwide farmer registration push has gathered pace, with 2.645 million farming households (about 64% of all) already registered and preparations underway for farmer classification and identity card distribution from next fiscal year. Tourism & Connectivity: Foreign tourist arrivals by air rose in the first six months of 2026, reaching 620,453—up from 577,689 last year—boosted by expanded international flight services to and from Kathmandu. Monsoon Watch: The Department of Hydrology and Meteorology warns of generally cloudy skies and moderate to heavy rain in parts of Gandaki, Lumbini and Sudurpaschim, with thunder and lightning possible. Disaster Response: A flood hit Dolpa’s Jagdulla Rural Municipality, killing one and injuring six, while APF divers continue searches after a Karnali Highway accident left a vehicle and passengers missing. Governance in Focus (100 Days): The government says it has made progress on its 100-point reform agenda, including anti-corruption and money-laundering actions, and claims 87.2% implementation so far. Media & Rights: Information Minister Vikram Timilsina says press freedom cannot be violated, as the Nepal Journalists Federation accuses the government of narrowing media access. Local Tensions: Fresh protests erupted in Birgunj against a road expansion project, with residents demanding compensation and rehabilitation before demolitions. Economy & Markets: NEPSE edged up last week, while Nepal Rastra Bank set Sunday forex rates (USD selling at Rs 152.64). Health & Safety: Nepal seized suspected counterfeit asthma medicines (Seroflo Rotacaps) in a crackdown, and the Radiologists Association urged strict compliance that only registered doctors provide radiology services. Education & Talent: Six Nepali students have departed for the 67th International Mathematical Olympiad in China. Sports (Local Crisis): FIFA’s suspension of ANFA over alleged government interference has thrown Nepali football into uncertainty.

100-Day Governance Push: Nepal’s government says it has hit 87.2% progress on its 100-point governance reform agenda, with 70 items fully implemented, and claims major savings after cutting federal ministries to 18—projected to save about Rs 20 billion annually. Relief & Identity Services: It also unveiled an integrated relief package for Gen Z movement injured and martyrs’ families, including monthly allowances for 513 injured and steps to update incident records and issue national ID cards. Policy & Legal Moves: The National Assembly advanced key bills, including Public Procurement (Second Amendment) and Prevention of Money Laundering (Third Amendment), while a constitutional amendment taskforce is set to submit its report by mid-July. Health System Pressure: Radiologists are demanding strict enforcement that only registered doctors provide radiology services, while health insurance users report medicine and test shortages and delayed reimbursements. Economy & Markets: NEPSE inched up 3.89 points last week; gold prices rose to Rs 290,700 per tola amid shifting global factors. Public Safety & Weather: Monsoon conditions continue with rain and possible lightning/snow in higher areas; disaster updates show 127 deaths and 773 injuries since mid-April. Transport & Enforcement: Traffic police booked 2,000 motorists in 24 hours, collecting about Rs 2.0 million in fines.

Health Insurance Watch: The Health Insurance Board has ordered hospitals to provide continuous, quality care to insured patients and to avoid unnecessary tests or pressure for extra services; it says it has already paid Rs 23.44 billion to providers this fiscal year. Hydropower Progress: Construction of the main tunnel for the 106 MW Jagdulla Semi-Reservoir Hydropower Project has started in Dolpa, with officials calling it a milestone for Karnali’s energy and development. Disaster Toll: Nepal recorded 127 deaths and 773 injuries in disaster-related incidents from April 14 to July 3, with snakebite, landslides and lightning among the biggest causes. Monsoon Disruption: Drinking water supply to Kathmandu Valley has been temporarily suspended after floodwaters affected the Melamchi intake, with resumption tied to water quality recovery. Food & Farming: The government has begun preparations to release sugarcane subsidies this year directly to farmers’ bank accounts, aiming to end long delays after the crushing season. Policy & Governance: The cabinet approved the National Advertising Policy-2026 to regulate ads across digital platforms and AI-generated content, including penalties for misleading claims. Public Safety: Traffic police penalized 2,000 motorists in Kathmandu Valley in a day, collecting over Rs 2 million in fines.

UNESCO Recognition: Jestha Varna Mahavihar in Lalitpur—rebuilt after the 2015 quake with India’s Rs 13.78 crore grant—received a 2025 UNESCO Asia-Pacific Heritage Conservation award. Digital Governance: The Infrastructure Ministry says it’s pushing e-governance, including online driver’s license printing and tracking via the Citizen App, plus steps to revive stalled projects. Universities & Education: Vice-chancellors for seven universities were appointed and KU held its 31st convocation, graduating 1,527 students. Elections Watch: The Constitutional Council recommended Man Bahadur Karki as Chief Election Commissioner and named other election commissioners. Public Health: Health authorities warn bird flu has spread to 100+ locations, urging strict biosecurity and safe handling of poultry. Economy & Markets: Public debt is nearing Rs 3 trillion; NEPSE fell 8.30 points with turnover above Rs 4.41 billion. Food & Trade: Nepal’s tea exports to India resumed after a testing-rule disruption, while officials urge quality upgrades and new markets. Healthcare Access: Civil Service Hospital expanded services to Singha Durbar; Health Insurance Board asks providers to avoid unnecessary tests amid payment arrears.

Melamchi Water Crisis: Flood damage at the Melamchi intake dam in Helambu has suspended drinking water supply to Kathmandu Valley, with officials saying muddy water and flood risk mean diversion into the tunnel can’t resume yet. Hydropower Push: Construction has started on the main tunnel for the 106 MW Jagdulla Semi-Reservoir Hydropower Project in Dolpa, with the government calling it a milestone for Karnali’s energy and development. Bird Flu Response: The health ministry launched a mobile ringtone awareness campaign on bird flu prevention, while the agriculture ministry released Rs 500 million to compensate poultry farmers for losses from the outbreak. Justice & Crime: “Nepali Bro” Kumar Thapa and his girlfriend were sent to judicial custody in his wife’s murder case, and the Supreme Court rejected former finance minister Bishnu Paudel’s habeas corpus petition. Governance & Economy: The HoR passed bills related to the Academy of Health Sciences and money laundering, while the government shut down 26 mobile apps and nearly 250,000 illegal betting sites. Foreign Relations & Culture: Foreign Minister Shisir Khanal urged balanced ties with neighbours, and India handed UNESCO’s 2025 heritage award to Jestha Varna Mahavihar in Lalitpur. Tourism & Daily Life: Nepal welcomed 621,624 international visitors in the first half of 2026, and Kathmandu Valley traffic police penalized 2,042 drivers in 24 hours.

Monsoon & City Life: Nagarjun saw 46.2mm rainfall and Kathmandu Valley streets turned waterlogged, prompting traffic police to manage disruptions. Parliament & Rights: Nepal swore in its first trans member of parliament, while the HoR passed the Cooperative (First Amendment) Bill, 2083, and the Prevention of Money Laundering (Third Amendment) Bill, 2083. Governance & Policy: Cabinet approved the National Advertisement Policy, 2083, to regulate digital ads, influencer marketing and AI deepfakes, and the HoR passed the Public Procurement (Second Amendment) Bill, 2083. Fuel & Enforcement: NOC introduced penalties up to Rs 1 million for fuel stations that shut or keep nozzles dry without valid reasons, and also rolled out a digital locking system for aviation fuel tankers. Security & Transport: Police intensified a crackdown on illegal tinted windows, and two people were arrested at TIA for gold and silver jewelry found in cargo. Economy & Markets: NEPSE inched up to 2,661.71, while investors reportedly lost about Rs 350 billion over three months. Social Sector: Nepal Red Cross urged office bearers to step down from active party roles, and the government formed a committee to address displaced families from Shuklaphanta National Park. Foreign Policy: Foreign Minister Shisir Khanal denied any uranium extraction agreement in Mustang and reiterated border talks with India through diplomacy.

Everest Recovery: India’s Indo-Tibetan Border Police has started hiring high-altitude specialists to recover the body of “Green Boots” (Dorje Morup) from Everest’s Tibetan side, nearly 30 years after the 1996 disaster. Culture & Education: The Library of Congress has added recordings of nearly two dozen Nepali authors to its permanent South Asian Literary Recordings Project, making the voices freely accessible worldwide. Health Appointments: Dr. Yogendra Prasad Singh has been appointed chairman of BP Koirala Cancer Hospital in Chitwan. Trade & Diplomacy: Nepal’s tea exports to India resumed after a two-month halt, with India easing import rules and allowing reduced sampling for consignments. Energy & Daily Life: Nepal Oil Corporation’s fuel price cuts triggered temporary fuel pump shutdowns in Kathmandu, leaving consumers stranded until supply normalized. Public Finance: The federal government has asked 23 local governments to explain budget delays for FY 2026/27. Monsoon Watch: The monsoon is active nationwide, with forecasts for light to moderate rain, thunderstorms and lightning in several regions. Health Alerts: Dengue cases have been confirmed in 1,042 people so far, with two deaths reported. Business & Governance: ADB approved a $50 million loan to modernize Nepal’s customs through digital procedures and risk-based inspections.

Education Reform: Nepal’s University Grants Commission has brought a revised national academic calendar into force, aiming to make higher-education schedules more systematic. Appointments & Governance: Shailendra Jha was named advisor to the Ministry of Education and Sports, while Kishore Thapa was appointed chair of Tribhuvan University’s Service Commission. Fuel Crunch: After Nepal Oil Corporation cut petrol and diesel prices, many pumps in Kathmandu and elsewhere stayed shut, leaving motorists stranded; NOC says the shortage should ease as monitoring teams move in. Local Budget Deadline: The federal government has sought explanations from 23 local bodies that missed the budget deadline for 2026/27. Public Health: Bird flu is spreading, with culling of hundreds of thousands of birds and the Kathmandu zoo closed to the public; officials say no human cases have been reported. Economy & Markets: NEPSE rebounded, rising 44.59 points after seven straight declines, while NRB issued a Rs 45 billion one-year debt note. Foreign Policy: Nepal says it’s ready to resolve the India border dispute through diplomatic dialogue. Tourism Push: Government plans a wellness tourism secretariat under the Nepal Tourism Board.

Fuel & Cost of Living: Nepal Oil Corporation cut petrol by Rs 20/litre, diesel and kerosene by Rs 30/litre, and LPG by Rs 100 per 14.2kg cylinder, with new rates from 12:01am Wednesday. Traffic Enforcement: Kathmandu Valley traffic police fined 2,157 vehicles in 24 hours, collecting over Rs 2.14 million, including cases for drunk driving, speeding, ride-sharing violations and tinted windows. Public Health & Services: Government directed private hospitals and clinics to set up breastfeeding rooms; Drug Management Department plans a minimum stock system to tackle drug shortages. Economy & Policy: NRB deputy governor Kiran Poudel said monetary policy will back budget growth while protecting macro stability; NRB also issued a Rs 35 billion one-year bond for liquidity management. Monsoon & Roads: Monsoon has fully spread across Nepal; Kanti Highway is blocked by landslides and Ilam’s Mechi Highway faces isolation risk as multiple sections erode. Justice & Governance: Supreme Court sought AG Kandel’s UK travel records; Special Court granted bail in the e-passport procurement corruption case. Health Alert: Bird flu is spreading in Kathmandu Valley and poultry farms, with labour shortage slowing culling. Foreign Policy & Migration: Baburam Bhattarai urged Nepal to adopt a “rhododendron” concept for a more dynamic foreign policy; Japan’s tighter visa rules are threatening some Nepali business residents.

Nepal-Bangladesh Ties: Nepal’s ambassador to Bangladesh Ghanashyam Bhandari told Dhaka’s National Defence College that relations are deepening on trust and cooperation, with foreign policy and security priorities also outlined. Tea Exports: Nepali tea factories restarted after India eased quality testing—only one in five consignments now faces sample checks—clearing backlogs and restarting shipments via Kakarbhitta–Panitanki. Aviation Probe: The Supreme Court ordered the government to explain why Nepal Airlines’ Chinese aircraft deal was never properly investigated, reviving scrutiny of a costly procurement. Road Disruption & Safety: Landslide blocked the Kanti Highway in Makwanpur, while a Hetauda road mishap injured six and Kathmandu traffic police penalized 1,592 vehicles, collecting over Rs 2 million. Governance & Services: The government says it’s modernizing postal services into a “government courier” to deliver services to homes; Nepal Telecom was also told to improve citizen-friendly service delivery. Economy & Courts: NEPSE fell to 2608.33; the Supreme Court ruled bank directors/CEOs warned by NRB are ineligible. Health & Environment: Bird flu is spreading in Nepal, with culling of hundreds of thousands of poultry and the zoo shut; NTNC nominated international conservation experts. Diplomacy & People: Saudi Arabia granted amnesty to 33 Nepali inmates for Ramadan.

Monsoon Watch: The monsoon is now affecting Koshi, Madhes and Bagmati, with rain expected to spread further across the country in the coming days, including possible heavy downpours in some areas. Disaster Preparedness (Gulmi): Gulmi’s disaster committee urged residents to stay alert for landslides and floods, follow weather advisories, and avoid risky river activities during heavy rain. Landless Protest Fallout: A landless man in Kirtipur was arrested for allegedly threatening to enter Singha Durbar with a khukuri over unmet demands, drawing renewed attention to holding-centre issues. Bird Flu Alarm (Kathmandu Valley): Nepal has culled over 600,000 birds and destroyed about 1 million eggs as H5N1 spreads in the valley, with crows flagged as a key carrier risk. Tea Trade Pressure: Eastern Nepal’s tea factories resumed after India eased testing, but producers warn inspections could still disrupt exports. Finance & Governance: Parliament and the National Assembly moved forward on budget-related deliberations, while the Auditor General’s office urged modern, tech-enabled auditing and flagged repeating arrears. Court Update: CPN-UML vice-chairman Bishnu Paudel’s remand was extended again for money-laundering investigation. Economy Signals: NEPSE fell for a sixth straight day, and NRB set Tuesday’s foreign exchange rates. Human Milk Bank: Paropkar’s milk bank says demand is rising fast and hospitals are increasingly requesting donor breast milk. Tourism Flow: Indian tourists are arriving in Nepal even during the off-season, with thousands of vehicles crossing daily. Kailash Mansarovar Advisory: India warned pilgrims not to travel without proper China permits and visas after 52 were stranded in Kathmandu.

Education & Community Schools: The National Conference of the SMC Federation kicked off in Kathmandu, with talks on improving community school quality and strengthening parent and stakeholder roles. Press Freedom & Support for Journalists’ Families: FNJ’s RSS Pratishthan honoured children of RSS journalists who cleared SEE, while urging stronger rights for journalists and citizens’ right to information. Agriculture & National Paddy Day: Nepal marked Asar 15 with dahi chiura, but rice plantation is only at 11.3% nationwide, with delays blamed on rainfall gaps and limited irrigation; MPs and NA members also pressed for irrigation, seeds and fertiliser, plus help for landless families in holding centres. Health in the Hills: Hospitals in mountain districts are seeking antivenom supplies as snakebite cases rise beyond the plains. Markets & Regulation: NEPSE fell for a sixth straight day amid investor anxiety over a draft Companies Act proposal on share transfer fees; the ministry signalled it will amend the provision. Justice & Corruption: The Special Court extended Bishnu Paudel’s remand and granted bail to five officials in the passport printing corruption case; CIAA filed a tourism-related corruption case. Governance & Enforcement: TU ordered campuses to remove party-linked student union structures; traffic police removed black-tinted windows from Home Minister and Home Secretary vehicles.

Monsoon Watch: Nepal’s monsoon is becoming active and is expected to spread across the country in the next 3–4 days, with heavy rain and thunderstorms likely in several provinces; authorities warn of flooding, landslides and flash floods. National Paddy Day: Asar 15 is being observed nationwide with rice planting and dahi chiura; President Paudel urged agricultural modernization and ending land idleness, while Prachanda highlighted farmers’ ongoing problems with fertilizer, seeds and irrigation. Road Disruptions: Koshi and Bagmati highways are facing closures and one-way restrictions due to landslides, floods and road repairs, including a month-long shutdown for repairs on a key Bagmati route. Health Insurance Restart: TUTH resumes outpatient services under the government health insurance programme after pending reimbursements were cleared. Transport Crackdown: Kathmandu Valley Traffic Police fined 57 vehicles for illegal black window films, saying it increases risks for crime and contraband movement. Aviation Reform: Nepal is moving to tighten domestic airline liability and insurance rules, with proposed compensation up to $100,000 for serious passenger injury or death. Tourism Policy Gap: A tourism boom is underway, but reporting says government institutions and infrastructure are still not ready for the surge.