AGP Executive Report

Nepali Congress Unity Talks: NC leaders Sher Bahadur Deuba, Purna Bahadur Khadka, and Shekhar Koirala’s group held talks on resolving internal rifts ahead of the 15th general convention, proposing a unity committee and even suspending a statute clause to include 111 leaders in the central committee. Supreme Court on Detention: The Supreme Court dismissed CPN-UML vice-chair Bishnu Paudel’s habeas corpus petition, after money-laundering-related arrest claims. Parliament Passes Key Bills: The HoR passed the Prevention of Money Laundering (Third Amendment) Bill, 2083, and also endorsed the Cooperative (First Amendment) Bill, 2083, with lawmakers pressing for clearer rules on cooperative deposits and regulation. National Service Corps: Government registered the National Service Corps Bill allowing Nepal Army training for citizens aged 13–21 and enabling wider training if the Council of Ministers deems it necessary. Cabinet Policy Push: Cabinet approved the National Advertisement Policy, 2083, to regulate digital ads and AI-generated content, and appointed Hikmat Bahadur Rawal as Gorkhapatra Corporation GM. Governance & Enforcement: Sudurpaschim CM Kamal Bahadur Shah was fined Rs 500 for riding without a helmet; NOC introduced penalties up to Rs 1 million for fuel-station closures without justification. Education Reforms: The government said it improved exam timelines, NOC processing, and reduced university political interference in its first 100 days.

Parliament & Governance: The House of Representatives’ live broadcast was disrupted after an internet outage, with the Parliament Secretariat saying streaming would resume once connectivity returned. Local Budget Scrutiny: The federal government has asked 23 local governments to explain why they missed the FY 2026/27 budget deadline, demanding responses within three days. Fuel & Public Services: After Nepal Oil Corporation cut petrol, diesel, aviation fuel and LPG, private petrol pumps reportedly shut temporarily, forcing long queues at security-run stations; transport entrepreneurs also urged automatic fare cuts to match fuel price drops. Foreign Policy & Diplomacy: Foreign Minister Shishir Khanal said an Indian helicopter entered Nepal’s airspace in Darchula due to bad weather, not intent, while Pakistan’s envoy Abrar Hashmi called on President Paudel. Economy & Trade: Nepal resumed tea exports to India after a two-month halt as New Delhi eased import rules, including reduced sampling requirements. Security & Migration: Police arrested five people for allegedly defrauding job seekers of Rs 6.5 million with promises of overseas work. Health & Regulation: The Nepal Medical Association urged that only Nepal Medical Council-registered doctors be allowed to practice modern medicine. Climate Funding: The Green Climate Fund approved an $8.5 million resilience project for Karnali’s forest-dependent communities. Tourism Numbers: Nepal recorded 91,363 foreign tourist arrivals in June 2026, up 19.5% year-on-year.

Local Governance & Budget Discipline: Nepal’s Ministry of Land Management has asked 23 local bodies to explain why they missed the legal deadline to present annual policies, programmes and budgets for FY 2083/84, seeking details within three days. Transport & Aviation: Suntharali Airport in Kalikot will not run regular flights due to low passenger numbers, with the minister saying services will resume once demand is assured. Health Regulation: The Home Ministry directed DAOs to take action against hospitals that fail to provide Target Group Free Treatment Portal discounts/benefits, including penalties for non-compliance. Gender-Based Violence: The National Assembly unanimously passed a resolution on tackling technology-facilitated gender-based violence, ordering the government to report progress every three months. Energy & Fuel Supply: After NOC cut petrol/diesel/LPG prices, Kathmandu saw “No Petrol” closures and queues as pumps held back stock expecting further drops; monitoring teams have been mobilized. Economy & Finance: NRB is issuing a Rs 45 billion one-year debt note, while experts urged monetary policy to prioritize financial stability and credit health. Diplomacy & Borders: Foreign Minister Shisir Khanal reiterated Nepal’s readiness to resolve the India border dispute through diplomatic dialogue based on historical maps and agreements. Education Policy: A revised national academic calendar has come into force, and Shailendra Jha was appointed advisor to the Ministry of Education and Sports.

Forensic Reform: Nepal’s parliament committee is pushing the Forensic Science Laboratory Establishment and Operation Bill, 2081 toward stricter expert standards, including postgraduate qualifications and clearer rules to reduce wrongful court outcomes. Medical Regulation: The Nepal Medical Council issued procedures to curb illegal medical practice, including misuse of the title “Doctor” by non-physicians. Drug Supply: The Drug Management Department plans a minimum stock system to tackle recurring shortages, including cancer medicines. Public Health Access: Government directed private hospitals and clinics to set up breastfeeding rooms. Fuel & Aviation Costs: Nepal Oil Corporation cut retail prices—petrol, diesel/kerosene, LPG, and aviation fuel—after global oil easing, while India also revised ATF and export duties from July 1. Governance & Federal Tensions: Provincial budget disputes are stalling assemblies, with infighting reported in Koshi, Bagmati, and Lumbini. Infrastructure Delay: The Nagdhunga–Muglin road expansion is still behind schedule as monsoon begins. RSP Political Update: Newly elected RSP office bearers and central committee members took oath and secrecy, with preparations for central committee meetings. Agriculture Supply: Nepal plans to import about 210,000 metric tonnes of chemical fertilizer by mid-August to support paddy crops.

Border Rights & Citizenship: Susta residents from West Nawalparasi staged a sit-in at Maitighar Mandala in Kathmandu demanding Nepali citizenship and land titles, saying political statements on the Nepal-India border have increased harassment by SSB personnel. Supreme Court Watch: The Supreme Court ordered submission of case files in the Deepak Bhatta-linked money laundering matters tied to UML vice-chair Bishnu Paudel’s habeas corpus case, and also sought Attorney General Narayan Kandel’s Nepal-UK travel records plus appointment files amid eligibility petitions. Energy & Prices: Nepal Oil Corporation cut petrol by Rs 20/litre, diesel and kerosene by Rs 30, aviation fuel by Rs 40 (domestic) and LPG by Rs 100 per cylinder. Governance & Discipline: The Land Ministry initiated disciplinary action against four civil servants for obtaining foreign residency permits and staying abroad beyond leave limits. Public Health & Food Security: Bird flu culling in the Valley is delayed by labour shortages, even as outbreaks were confirmed across Kathmandu Valley and nearby districts. Economy & Trade: Gold fell by Rs 4,500 per tola; illegal goods worth over Rs 35.17 million were seized in Rasuwa. Party Politics: RSP revised its final central committee list after a vote-count technical error.

Child Rights & Party Politics: Nepal is facing fresh backlash after the Rastriya Swatantra Party’s convention disclosure that 35,257 members under 18 were listed, reigniting demands to stop minors being recruited for political purposes despite “Zones of Peace” rules. Monsoon Safety: Jhapa and Gulmi administrations issued alerts and night-time vehicle bans on flood/landslide-prone corridors as heavy rainfall is forecast. Public Health & Biosecurity: Nepal reported bird flu across 11 districts, culling over 596,000 poultry and shutting Kathmandu’s zoo temporarily as authorities suspect spread via infected crows. Food Security & Climate: National Paddy Day celebrations came alongside warnings that paddy planting is only about 11–13% done by late June, with drought and delayed monsoon raising rice-production fears. Energy & Infrastructure: Karnali’s Jagdulla Hydropower Project (230.35 MW combined) is highlighted for boosting road connectivity and local development under the People’s Hydropower Programme. Governance & Tax: Finance Minister Swarnim Wagle withdrew the proposed VAT on electricity after criticism, saying decisions will protect most consumers. Crime Investigation Modernisation: Lumbini Province police urged tech-led, scientific crime investigation to tackle cybercrime, money laundering and trans-border cases.

Parliament & Governance: Speaker Dol Prasad Aryal urged Nepal’s audit system to modernize with IT, data tools and AI, warning that repeating the same arrears year after year signals weak financial discipline. Budget Process: The National Assembly passed a proposal to start deliberations on the Appropriation Bill, with Finance Minister Swarnim Wagle defending education/health/electricity taxes and saying relief measures target middle-income earners. Courts & Corruption: The Special Court extended former DPM Bishnu Paudel’s money-laundering remand by three days, while granting bail to the passport printing corruption case’s Director General Aryal and four others. Education & Civic Space: TU ordered constituent campuses to remove party-linked student union structures within 60 days. Federalism in Practice: A new push highlights PRTA/PRTC “engine room” roles in building subnational governance capacity. Food & Agriculture: National Paddy Day came with a warning—rice plantation is only 11.3% complete nationwide despite the self-reliance push. Economy & Markets: A draft Company Act sparked NEPSE jitters after a proposed 1% fee on large share transfers; the ministry says it will amend the provision. Public Services & Regulation: NRB sanctioned eight microfinance institutions for governance and prudential breaches, and the Industry Ministry launched a real-time company/industry registration dashboard.

Capital Spending Gap: With the fiscal year ending in about two weeks, Nepal has spent only 34.87% of its capital budget—Rs 142.23 billion out of Rs 407.88 billion—as of June 27, down from 44.76% last year, while total spending has crossed 70% but is mostly recurrent and debt servicing. Capital Markets Reform: Finance Minister Swarnim Wagle administered the oath to newly appointed SEBON chair Gopal Prasad Bhatta, urging integrity, investor protection, and a timed action plan for market reforms to curb rumours that scare small investors. Parliament Accountability: Speaker Dol Prasad Aryal told HoR lawmakers they are being watched by voters through media and urged responsibility, better parliamentary conduct, and tech-friendly lawmaking. Left Unity Push: Pushpa Kamal Dahal called for leftist unity “as soon as possible” to defend sovereignty and resist authoritarianism, while other left leaders echoed cooperation despite past splits. RSP Under Fire: The Rastriya Swatantra Party faced criticism after admitting it enrolled 35,257 children as members despite legal bans, saying it was a technical error and pledging cancellation after verification. Monsoon Risk Forecast: NDRRMA projects about 226,000 people could be affected by monsoon disasters this year, with district-wise risk mapping and a preparedness plan already in place. Agriculture on Paddy Day: President Ramchandra Paudel and CPN leader Prachanda used National Paddy Day to press for modern, commercial farming and farmer-friendly access to inputs like fertilizer, seeds and irrigation. Tourism Pressure Point: A commentary notes Nepal’s tourism boom is real, but government institutions and infrastructure remain unprepared for the surge.

Fuel Price Politics: Finance Minister Swarnim Wagle says petrol and diesel prices are set to fall, but not immediately, citing import and processing delays after global crude eased. Parliament & Governance: The HoR endorsed replacement bills for ordinances, including Public Procurement and Money Laundering amendments, and passed the Health Sciences Academies bill to improve transparency in appointments. Health System: TU Teaching Hospital will resume health insurance services after government arrears payments, while Kathmandu Metropolis supplied 1,800 vials of anti-rabies vaccine to address a shortage. Foreign Employment Oversight: Government moves to make manpower companies responsible for monitoring Nepali workers abroad through mandatory, regular reporting. Party Politics: Left leaders renewed unity calls after the March election setback, while the Nepali Congress questioned RSP for enrolling 35,257 minors as party members. Food Security Pressure: National Paddy Day is observed amid drought-linked monsoon weakness and fertilizer shortages affecting paddy planting. Legal Accountability: Supreme Court orders an expedited hearing into a decade-and-a-half-old Chinese aircraft purchase case involving Nepal Airlines. Cross-border Travel Advisory: India warns Kailash Mansarovar pilgrims not to start without China permits/visas and to verify authorized private tour operators. Public Safety: Bird flu spread in Kathmandu Valley is linked to infected crows, with outbreaks reported across multiple districts.

Parliament Watch: The House of Representatives passed the Finance Bill 2083 after rejecting amendments, while lawmakers also moved to deliberate on the Finance Bill and the Bill to Raise National Debt, with the HoR briefly adjourned for 15 minutes. Budget & Economy: Finance Minister Swarnim Wagle told MPs petroleum prices may take time to fall domestically despite easing global fuel costs, citing import-related delays. Monetary Policy: Nepal Rastra Bank’s spokesperson Gurupasad Poudel said monetary policy will support the government’s budget and hinted at an asset management company for non-banking assets. Governance & Oversight: The Auditor General’s 63rd annual report for FY 2083 was tabled in the HoR. Foreign Affairs: India’s MEA issued a fresh advisory warning Kailash Mansarovar pilgrims not to start without China visas/entry permits and to verify private tour operators; the advisory follows reports of Indians stranded in Nepal. Weather & Risk: Monsoon has spread across Koshi, Madhesh and Bagmati, with further expansion expected in 3–4 days; Karnali estimates around 13,000 people may be affected by monsoon disasters. Culture & Society: A 13th-century Buddha idol recovered from the US has returned to Kathmandu; TUTH will resume health insurance OPD services from June 29. Sports/Politics: Opposition MPs pressed for clarification on the PM’s border remarks, while ANFA’s suspension continues to draw criticism.

US-Iran Tensions: The US accuses Iran of attacking commercial cargo ships in the Strait of Hormuz, while Iran warns ships to seek permission and says it will broaden its response; crude oil prices fall despite the risk to a key global shipping route. Regional Diplomacy: A US-Israel-Lebanon trilateral agreement lays groundwork for a Lebanon-Israel peace process. Nepal-Policy & Economy: With 19 days left, Nepal’s revenue collection sits at 75.17% of target, leaving a big gap to be filled; the government also revived a long-delayed draft bill to tighten domestic aviation liability and insurance rules. Political Realignment: KP Sharma Oli and Pushpa Kamal Dahal are reported to be exploring fresh left alignment amid investigations into senior leaders’ assets. Infrastructure & Transport: The Kalamati–Basundhara ring road expansion still hasn’t physically started despite an April grant deal; the Araniko Highway faces 15 nights of closures from July 6 for upgrading. Public Health: Cancer patients receiving government subsidies nearly doubled over five years, highlighting rising treatment demand. Labour Migration: Nepal’s youth and labour minister urged Saudi Arabia to postpone a skill verification process so Nepali workers’ visa processing isn’t disrupted. Security & Justice: Nepal’s NHRC dispute with Oli continues as he seeks the commission’s Gen-Z movement investigation documents. Environment & Trade: France-led regional seminar in Nepal focuses on combating waste trafficking across South and Southeast Asia.

RSP Convention Fallout: The Rastriya Swatantra Party’s first national convention in Chitwan ended with a new statute and leadership, but delegates complained of poor management, verification delays, and low turnout in the final leadership vote. Party Politics: RSP elected Rabi Lamichhane as chair and Swarnim Wagle as vice-chair (unopposed), while Sobita Gautam won vice-chair and Bipin Acharya secured general secretary, amid continued internal rifts. Football Governance: Nepal’s football body ANFA was arrested/targeted in a FIFA-related governance dispute, while former ANFA president Karma Tsering Sherpa was arrested by Nepal Police over alleged embezzlement of Rs 87.8 million. Public Safety—Drugs: Nepal Police arrested 41 suspected drug traffickers during anti-drug operations, and the Home Ministry announced a shift to treat addiction as a health issue while toughening action against trafficking networks. Health—Bird Flu: Avian influenza H5N1 has been confirmed at 82 sites across 11 districts, with large-scale culling and surveillance ramped up in the Kathmandu Valley. Economy & Governance: Nepal’s public debt has more than doubled in seven years, and the government is relying heavily on borrowing to cover budget gaps. Cross-border & Crime: Police arrested a man in Saptari with smuggled goods from India, and a regional seminar in Kathmandu urged stronger cooperation to curb waste trafficking. Culture & Heritage: A stolen 13th-century Buddha idol was restored to Kathmandu after repatriation efforts.

Governance Overhaul: Nepal’s PMO and Council of Ministers have issued 40 guidelines, procedures and circulars to speed up service delivery, push digital governance, cut delays and strengthen accountability across federal, provincial and local levels. Parliament Watch: The House of Representatives meeting has been postponed again for the third straight time, now rescheduled for June 28, with the RSP general convention cited as a key factor. RSP Leadership: At the Rastriya Swatantra Party’s first general convention, Bipin Kumar Acharya was elected general secretary, while Swarnim Wagle won vice-president unopposed and Sobita Gautam was elected women vice-chairperson. Public Service Costs: Nepalgunj has introduced a Rs 2,000 fee for ward recommendations to get drinking water connections, adding to a total upfront burden that critics say blocks poor households from safe water. Judiciary & Media: Chief Justice Manoj Kumar Sharma urged balanced, accurate reporting to build public trust and protect the right to be informed. Health & Rights: The Health Ministry is seeking higher nutrition funding from aid agencies as child malnutrition worsens, while the NHRC directed the government to ensure justice for torture victims. Tech & Connectivity: Nepal Telecom’s international roaming service reportedly faced a network outage affecting calls for users abroad.

RSP Leadership Shake-up: The House of Representatives meeting was postponed to June 28, with the timing linked to the ruling Rastriya Swatantra Party’s first general convention; meanwhile, RSP’s general secretary race narrowed as Jagadish Kharel withdrew, and Burlakoti also stepped back, leaving eight contenders. Women’s Representation in Parties: RSP reported 49 women among 99 elected central committee members (49.49%), with leadership selection now turning to how the party will balance inclusivity in the remaining nominations. Local Governance Debate: RSP is pushing a non-partisan model for local councils and the National Assembly, arguing the current system fails on accountability—though legal and political hurdles remain. Economy & Finance: Nepal Chamber of Commerce urged Nepal Rastra Bank to make monetary policy more investment- and private-sector friendly, including credit growth targets and tighter interest-rate rules. Monsoon Readiness: APF put 21,000+ trained personnel on alert for floods and landslides under its monsoon preparedness plan. Health & Social Impact: A major survey warns child malnutrition is “alarming,” with wasting and underweight rates rising after aid cuts. Justice & Governance: Passport of businessman Ajeya Raj Sumargi was suspended as Nepal reopens a money laundering probe. Trade & Industry: Nepal’s tea factories reopened after government assurances over India’s stricter import testing, but exporters warn delays may persist. Sports Governance: FIFA suspended Nepal over third-party interference, escalating pressure on the football establishment. Housing Displacement: Squatters in Kathmandu Valley were issued a new vacate notice for holding centres, with only short-term allowances offered. International Relations: US Charge d’Affaires Scott Urbom met Vice President Ram Sahay Yadav, discussing Nepal-US ties. Heritage Repatriation: Two major statues repatriated from New York are set to return to Nepal for conservation and reinstatement.

FIFA Suspension: FIFA has suspended Nepal’s football body ANFA indefinitely, citing “undue interference by a third party” in governance and election delays, effectively barring Nepal from all international competitions and stripping ANFA of FIFA member rights. Sports Governance: The fallout adds pressure on the National Sports Council and government over repeated obstruction of the elective process. Monetary Policy: Nepal Rastra Bank says the coming monetary policy will prioritize financial stability and interest-rate management, while responding to sluggish domestic demand flagged by the private sector. Tea Crisis: Ilam tea factories are set to reopen after government assurances, following disruptions linked to India’s testing and clearance delays; a taskforce has also been formed to resolve export problems. Banking Rules: NRB tightened norms on capitalizing interest during loan moratoriums for long-term projects, with special treatment for some hydropower delays. Capital Markets: NEPSE fell for a fourth straight day, down 8.50 points, as turnover dropped. Education: The Education Minister says Grade 12 results were published on time, while a committee will review grading and data-entry after student protests. Public Health: Nepal’s Central Zoo faces scrutiny over its bird flu response after dozens of animals reportedly died.

Sports Governance Crisis: FIFA has suspended the All Nepal Football Association (ANFA) with immediate effect, citing “undue interference by a third party” in football governance. The ban bars Nepal’s national teams and clubs from FIFA/AFC international competitions and cuts off FIFA/AFC funding, training and development support until the dispute is resolved. Party Politics: Rastriya Swatantra Party (RSP) delegates at its first general convention report delays, logistical chaos and heavy delegate costs, while the leadership debate is reignited by proposals for a directly elected executive and fully proportional representation. Legal/Detention: Nepal’s Supreme Court issued a show-cause order in Bishnu Paudel’s habeas corpus petition, with authorities required to explain the basis for his detention amid a money-laundering probe. Local Governance Budgets: Six metropolitan cities unveiled FY 2026/27 budgets totaling about Rs 54 billion, with Kathmandu and Lalitpur prioritizing infrastructure more than others. Disaster Watch: A 3.8 magnitude earthquake hit Nepal early Thursday; officials say no major damage has been reported yet.