AGP Executive Report

Electoral Reform: Proposed Chief Election Commissioner Man Bahadur Karki presented an action plan for cleaner, technology-friendly polls, including options to let Nepalis abroad vote and a push for electronic voting machines. Public Safety & Health: Doctors in Kathmandu halted non-emergency services over assaults on medics, while nationwide rainfall, landslides and floods blocked multiple highways and road sections. Sunsari Tension Management: Rabi Lamichhane’s all-party meeting urged peace and social harmony, calling for local peace committees and responsible social media use; NC President Gagan Thapa also pressed PM Balendra Shah to lead and supervise. Local Governance & Food Safety: The federal government urged local levels to appoint food inspection officers and enforce the Food Hygiene and Quality Act for regular market monitoring. Environment: Nepal’s tiger population rose to 429 in the latest census, with Chitwan leading at 145. Political Leadership Updates: Former PM Baburam Bhattarai’s health is improving, and President Paudel met RSP President Rabi Lamichhane ahead of discussions on the Sunsari incident. Economy/Policy: Parliament is debating the Nepal Rastra Bank Act amendment bill, with disputes over government representation on the central bank board.

Sunsari Communal Tension: Nepal’s PMO and Prime Minister Balendra Shah urged restraint and religious tolerance after the Dewangunj incident, while a Home Ministry probe committee was formed to submit findings in seven days and legal action is promised; curfew was also imposed in parts of Sunsari. RSP Push for Dialogue: Rastriya Swatantra Party chair Rabi Lamichhane called an all-party meeting for 8:00 am to discuss the Sunsari incident and wider issues, urging a common message for peace and harmony. Top Court Clash: PM Shah filed a written response to the Supreme Court defending his authority to appoint the Attorney General, arguing it is his executive prerogative. Japan Human Capital Boost: Japan agreed a grant of about Rs 390 million for JDS scholarships to train Nepali officials in Japan. Energy & Infrastructure Appointments: Bibek Raj Kandel was appointed energy advisor to the energy minister, and Nepal-India energy talks point to expanded electricity export quotas. Nepal-India Heritage: India and Nepal jointly inaugurated restored Buddhist sites in Patan and Lalitpur with Indian reconstruction support. Identity System Procurement: Nepal decided to buy 10 million biometric ID licences from IN Groupe without competitive bidding, raising procurement questions. Parliament Management: HoR Speaker Aryal consulted chief whips and whips on running parliamentary business smoothly.

Transport & Infrastructure: Nepal officially inaugurated the Nagdhunga–Sisnekhola road tunnel, cutting travel time on a key corridor and marking a “tunnel era” for the country, though transport entrepreneurs flagged concerns over the proposed user fees. Public Safety & Urban Governance: Energy Minister Biraj Bhakta Shrestha pushed for coordinated action to clear disorganized overhead cables and expand underground cabling across Kathmandu after field inspections. Health Rights & Workplace Violence: Chitwan hospitals suspended OPD services after an assault on a Narayani Hospital doctor, affecting 11,000+ patients; meanwhile the Health Ministry opened a final window for public feedback to strengthen protection for health workers. Law & State Capacity: The Law Ministry invited public comments on amending the Nepal Law Commission Act to make the commission responsible for drafting government bills, aiming to reduce reliance on external consultants. Politics & Accountability: Opposition parties plan to press for Finance Minister Swarnim Wagle’s resignation after the PM reversed new taxes on education and health; NC in Lumbini also put ministers’ resignations on hold amid coalition talks. Internal Security: Curfew and prohibitory orders continued in Sunsari after communal violence, with tensions spreading to additional areas. Economy & Markets: SEBON was urged to ensure “quality regulation” for a more investor-friendly capital market.

Media Regulation: Information and Communications Minister Dr Bikram Timilsina discussed a draft bill to amend and integrate media council laws, stressing a stronger, accountable regulator that can balance press freedom with credible journalism and enforce norms. Communal Violence in Sunsari: Dewangunj violence has drawn sharp political backlash; Nepali Congress demanded a Home Minister response and an impartial probe, while NHRC urged peaceful dialogue, law-and-order action, relief and compensation. Digital Identity & Payments: Nepal Rastra Bank made National ID verification mandatory for digital wallet onboarding, and Nepal approved IN Groupe for a new 10M-record biometric ID system via direct procurement. Govt Oversight & Consumer Rules: Commerce Department collected Rs 26.12m in fines from 537 firms; IRD clarified VAT won’t be charged on electricity bills for the last month of FY 2025/26. Infrastructure & Trade: Nagdhunga–Sisnekhola tunnel was inaugurated, and India-Nepal rail hit a milestone with the first direct commercial container freight train from Kolkata to Biratnagar. Governance & Public Safety: Ministers inspected unmanaged telecom cables progress, warning of punishment for delays; Advertisement Board ordered pre-vetting of broadcast ads.

Nagdhunga–Sisnekhola Tunnel: Nepal inaugurated its first modern road tunnel, cutting Nagdhunga travel to about 5–7 minutes; initially only ambulances, fire engines and essential security vehicles will use it, with a three-month trial before phased public access and vehicle-based fees. Communal Violence in Sunsari: A clash in Dewanganj’s Kaptanganj Bazaar left one dead and dozens injured, triggering an indefinite curfew and prohibitory orders in five market areas; the Nepal Army was deployed and a central security review was held. Madhes Human Rights Push: Madhes Province Chief Surendra Labh Karna urged a separate provincial human rights act to tackle caste discrimination and violence against women, with civil society and lawmakers calling for stronger legal protection. Provincial Power Talks: UML-NCP coalition talks continue as Koshi and Sudurpaschim governments face internal disputes over chief ministerial candidates and ministry allocations, including Madhes’ shifting political equation. TU Exam Crackdown: Tribhuvan University warned that students violating exam code of conduct will have exams cancelled, with strict bans on phones and other prohibited items. Health Sector Scrutiny: Nepal’s IVF sector faces renewed scrutiny after allegations involving illegal egg extraction from a minor, with police investigations underway. Regional Diplomacy: Maldives President Muizzu renewed calls to revive SAARC through dialogue and offered mediation, while Bangladesh also pushed for stronger institutional mechanisms. Climate Adaptation Warning: A report flags a “mortality-cooling trap,” projecting hundreds of thousands more heat deaths by 2050 for poorer countries including Nepal due to limited cooling access.

Exam Integrity Under Fire: Nepal Police arrested two suspects, including “Sulav Sir,” over a TU MBS first-semester Organizational Behaviour paper leak that spread via a WhatsApp group minutes after the exam began, with CIB and Cyber Bureau probing who uploaded and how it was circulated. Health & Exploitation Allegations: Police launched an investigation into senior IVF specialist Dr Nutan Sharma after claims that eggs were extracted from a 17-year-old at B&B Hospital, following a complaint and arrests of an intermediary linked to mobile banking transfers. Tourism & Trade Signals: Nepal recorded 1.209 million foreign tourist arrivals in FY 2025/26 (+4.8%); customs revenue rose only 6.5% despite import volume up 16.2%, pointing to continued fiscal pressure from exemptions. Border & Travel Rules: Nepal allowed carrying redesigned Indian Rs 200/500 notes up to Rs 25,000 across the border, while also formally seeking India’s approval to treat Nepal’s National Identity Card as a valid travel document. Provincial Politics: Koshi CM Hikmat Karki reportedly refused to step down unless UML formally removes him, as internal UML-NCP power-sharing tensions surface. Public Finance & Protest: A microfinance victims’ march toward Singha Durbar was halted at Shantibatika; protesters demanded relief from high interest, penalties, and debt recovery practices. Infrastructure Delivery: Home Minister Sudan Gurung ordered faster completion of the long-delayed Rasuwagadhi integrated customs office after an eight-year construction delay.

Identity & Travel: Nepal has asked India to recognise Nepali National Identity Cards as a valid travel document, alongside citizenship certificates and passports, to ease cross-border movement by air and land. Border Money Rules: Nepal also allowed Indian and Nepali citizens to carry redesigned Indian ₹200 and ₹500 notes issued on/after Nov 9, 2016 up to ₹25,000, ending the near-decade restriction on higher denominations. Provincial Power-Sharing: CPN-UML and NCP signed a three-point deal to cooperate in provincial governments—UML to lead Koshi, Bagmati and Lumbini; NCP to lead Karnali and Sudurpashchim—while Madhesh and Gandaki will be decided after consultations. Karnali Government Shift: Karnali’s CM Yamlal Kandel resigned after losing majority support, clearing the way for a new government under the power-sharing arrangement. Public Finance Watch: Nepal’s public debt rose to Rs 2.97 trillion in FY 2025/26, with rupee depreciation driving much of the increase. Infrastructure & Safety: Ring Road widening is moving ahead with bids for the Chappal Karkhana–Dhobikhola stretch; meanwhile, heavy rains disrupted multiple highways and road sections. Social Sector: Renovation of Kathmandu’s Bal Mandir (Children’s Home) has started after Minister Sita Badi’s directives, following reports of severe dilapidation. Health Crisis: A report highlights doctor shortages crippling healthcare delivery in Karnali, with many specialist posts vacant. Tourism & Economy: Nepal recorded 1.2 million foreign tourist arrivals in FY 2025/26, with India the biggest source market; Chitwan hotels report a tourist uptick despite monsoon disruptions. Disaster & Crime: Fires in Parsa, Kathmandu and Dang caused damage worth millions; Surkhet residents allege black marketing amid LPG shortages despite official claims of adequate supply.

Provincial Power-Sharing: CPN-UML and the Nepali Communist Party (NCP) signed a written agreement to cooperate in provincial assemblies, with UML leading Koshi, Bagmati and Lumbini and NCP heading Karnali and Sudurpashchim, while Madhesh and Gandaki will be decided after consultations. UN Development Roadmap: Nepal and the UN Joint Steering Committee reviewed progress under the UNSDCF and endorsed the roadmap for the next cooperation framework 2028–2032, with signing expected in July 2027. Dr. Govinda KC Talks: Education and Sports Secretary Chudamani Paudel began informal talks with Dr. Govinda KC in Dhangadhi amid his hunger strike, with formal talks planned after key arrivals. Map on Coin: Nepal will retain the controversial territorial map on the one-rupee coin, despite earlier approval to replace it, as the NRB prepares the new design. Public Finance Pressure: Nepal’s public debt rose to NPR 2.974 trillion in FY 2025/26, more than fourfold in a decade, driven by earthquake and COVID-19 borrowing. Energy & Economy: Energy Minister Biraj Bhakta Shrestha said private firms should be enabled to participate in electricity trading; the government also unveiled a mega strategy to boost exports and cut the trade deficit. Health Support: The US handed over a refrigerated freezer van and MNCH equipment worth $1 million to strengthen Nepal’s immunization and maternal-newborn care. Security & Rights: RSP condemned alleged mistreatment of HoR member Ganesh Paudel, urging impartial investigation and security for lawmakers. Digital & Services: Global IME Bank launched account opening via Nagarik App, and VAT collection rose 9% to Rs 372.88 billion in FY 2025/26.

Judiciary Under Fire: International rights groups (ICJ, HRW, Amnesty) allege Nepal is pressuring Supreme Court justices into resignation or impeachment, while the government rejects the claims and says it will not weaken judicial independence. Foreign Policy Focus: A commentary flags PM Balendra Shah’s inward governance and “foreign policy drift,” even as the government says economic diplomacy remains a priority. Migration Reform: Youth, Labour and Employment Minister Ramji Yadav says Nepal will amend the Foreign Employment Act to cut migrant workers’ debt burden, digitize recruitment, and tighten penalties for violations. Media & Misinformation: Information Minister Zahir Uddin Swapon argues journalism must be data-based and warns against fake news. Education Governance: Education Minister Dharmendra Pradhan resigns amid India’s NEET paper leak protests; Nepal’s own education consultancy security bond (Rs 2.5m) stays in place. Economy & Markets: Nepse rises 57 points weekly; Nepal’s edible oil exports to India face scrutiny over tariff advantages. Public Services & Safety: Nepal Red Cross completes first-aid training across all 32 KMC wards; Nepal Electricity Authority inspects eastern grid after power complaints. Agriculture Crisis: Farmers report severe chemical fertilizer shortages, with urea/DAP/potash scarcity disrupting paddy planting. Legal/Anti-Corruption: CIB files a case over alleged embezzlement involving Nepal Bal Mandir land and funds. Regional/International: Nepal-Korea sign USD 11.8m MoUs for agriculture value chains and legal information access.

Judicial Independence & Diplomacy: Nepal’s Chief Justice Sharma arrived in India for an international UN trade-law conference, underscoring Kathmandu’s push to rebuild a “new judiciary” amid fresh international concern over political interference in Supreme Court appointments. Aviation & Mobility: Nepalgunj–Pokhara direct flights were suspended again, pushing passengers toward monsoon-risk road travel as fuel costs and weak demand bite. Public Finance: Nepal’s public debt rose 11.25% in FY2025-26 to Rs 2.974 trillion, with debt-to-GDP climbing to 45.07% even as the IMF flags low distress risk. Economic Diplomacy: Foreign Ministry says country-specific economic diplomacy strategies are underway with 20 partners, while PM Shah met industry groups to expand export markets. Governance & Services: Foreign Ministry says passport-system glitches will be fixed gradually; Rapti Academy started grievance hearings for better hospital transparency. Legal/Policy Watch: Government sought suggestions for a hydrogen vehicle policy framework; equivalency certificates are delayed due to pending regulations. Regional/International: Nepal–Korea signed two MoUs worth USD 11.8m for agri value chains and legal information services; US delivered USD 1m in maternal and child health equipment.

Electricity Regulation: Dr. Ram Prasad Dhital has been reappointed as Chair of Nepal’s Electricity Regulatory Commission and took the oath along with new members, restoring experienced leadership while one female seat remains vacant. Constitutional & Legal Reform: A constitutional committee report is drawing controversy after opposition parties questioned its recommendations, including changes affecting the Judicial Council’s composition and a referendum proposal. Infrastructure & Transport: Japan’s Nagdhunga Tunnel is highlighted as a major Nepal-Japan infrastructure milestone, with traffic management plans for thousands of vehicles. Disaster Response: Monsoon rains and landslides have blocked nine road sections and disrupted major highways, forcing night-time closures and reroutes. Education Governance: The Education Minister says the government will work closely with the private sector to improve education and regulate education consultancies, while seeking feedback on health amendment bills. Economy & Trade: Nepal’s trade deficit jumped 16.63% to Rs 1.781 trillion as imports outpaced exports. Digital Crackdown: NTA shut down 223,568 online betting apps and websites. Foreign Relations: Nepal and Korea signed two MOUs worth $11.8m for agricultural value chains and legal information access. Politics & Appointments: Finance Minister Swarnim Wagle vows to end political interference in civil service postings and transfers.

Everest Porter Support: Nimsdai Foundation opened the Lobuche Porter House, a new accommodation facility for Everest-region porters, designed for up to 100 people and inaugurated with international trekkers and local communities. Party Politics & Democracy: CPN-UML chair KP Sharma Oli said major parties must protect constitutional democracy and warned against “new and old” narratives sparking controversy, while NCP coordinator Pushpa Kamal Dahal called for unity among progressive forces to safeguard republican gains. Monetary & Trade Rules: Nepal Rastra Bank revised foreign exchange rules to allow Indian Rs 200/500 notes (with limits) and clarified cross-border currency movement; customs data also shows foreign trade rose 15.88% in FY 2025-26, with Birgunj leading trade flows. FATF Grey List Push: Finance Minister Swarnim Wagle told tax officials to improve transparency and voluntary compliance to help Nepal exit the FATF Grey List. Energy Governance: Dr. Ram Prasad Dhital was reappointed ERC chair, and IPPAN met India’s ambassador to discuss cross-border electricity trade. Organic Agriculture Drive: PM Balendra Shah directed domestic certification of organic production and steps to curb chemical fertilizers and pesticides. Telecom Ownership Tension: Ncell urged the government to review disputed 25-year licensing/ownership conditions to protect investment and service continuity. Education Autonomy: Education Minister Sashmit Pokharel called for ending party influence at TU and ensuring academic autonomy. USAID Fallout: AP reports transgender aid workers in Nepal turned to sex work after USAID cuts eliminated jobs.

Diplomacy & Party Politics: PM Balendra Shah’s “one-on-one” diplomatic rule appears to be changing as he prepares separate meetings with India and China envoys, while domestic politics stays tense with Nepali Congress factions hardening positions and the Bagmati coalition shaken after UML withdraws support. Parliament & Governance: Attendance at parliamentary sittings is low, with PM and senior leaders repeatedly missing sessions; meanwhile, a minister’s decision to send his own secretary to a UN Habitat event instead of the ministry secretary has sparked internal friction. Youth Protest & Rights: Five youths were arrested after chanting “Down with Nepo Baby!” at TU, demanding merit-based university governance and an end to political interference. Public Finance & Policy: Cabinet extended fee waivers and incentives for international flights via Pokhara and Gautam Buddha airports to mid-September 2028, aiming to revive low turnout; the government also implemented an amended procedure for interest grants on concessional loans to curb misuse. Disaster & Safety: Heavy rain and landslides blocked major highways across seven districts; separate reports also note NEA compensation for an electric shock victim and bird flu declared under control with no new cases since July 17. Energy & Economy: NEA begins RCOD extension process for 218 hydropower projects, and energy minister calls for better coordination across federal, provincial and local levels.

Nepal Sanskrit University: Prof Dr Bhim Prasad Khatiwada was sworn in as the newly appointed Vice Chancellor of Nepal Sanskrit University in Kathmandu, pledging to strengthen research and quality in arts, literature, culture and religion. Judicial probe & accountability: The government formed a judicial inquiry committee headed by former High Court judge Keshav Prasad Bastola to investigate the self-immolation death of Ganesh Nepali, with a report due within seven days. Telecom regulation: Nepal’s Supreme Court cleared the way for the Axiata–Spectrlite UK deal over Ncell shares by dismissing a writ petition, directing the Nepal Telecommunications Authority to decide under telecom rules. Economy & consumer policy: Cabinet approved withdrawing the 3% equity tax on private education and health sectors after public backlash; lawmakers also debated regulating hotel room rates under the Integrated Tourism Bill, drawing pushback from hoteliers. Trade & infrastructure: Cargo rail from Kolkata to Biratnagar is expected to cut transport costs and time for traders and industrialists. Sports & culture: SAFF confirmed the Men’s Championship in Bangladesh (Nov 4–17) but Nepal’s participation hinges on FIFA lifting ANFA’s suspension; NC marked BP Koirala Memorial Day with a Green Run and announced a Humanitarian Welfare Fund. Regional politics: India’s “Cockroach” youth protests continued amid police action and fresh violence near Parliament Street, with internet disruptions reported.

LDC Graduation: ECOSOC has recommended that the UN General Assembly decide on Bangladesh and Nepal’s request to extend their LDC graduation preparation period by three years, pushing the target to November 2029. Tax & Public Services: Gen-Z activists in Nepal are protesting taxes on basic services like education and healthcare, arguing the burden hits daily survival. Budget Execution Push: Nepal’s Finance Ministry issued a 47-point directive to ministries and agencies to speed up fiscal-year budget implementation, curb waste, and improve capital spending and procurement discipline. Election Commission Confirmations: Parliament’s hearing committee has set July 28-29 for hearings on the proposed Chief Election Commissioner and two Election Commissioners. Flood Disruptions: Heavy rain and landslides have blocked or partially disrupted major highways, with night movement restrictions in flood-prone stretches. Political Tensions: Former PM Sher Bahadur Deuba says he will oppose “retaliation” politics and warns of pressure on the judiciary and constitutional bodies. Bagmati Coalition Shake-up: CPN-UML ministers in Bagmati Province have resigned and withdrawn support from the ruling coalition. Infrastructure & Trade: Cargo rail has arrived at Biratnagar customs yard, boosting the Morang-Sunsari industrial corridor; officials and industry say policy and cost reforms are still needed for sustainability. Monsoon Governance: The government has started reviewing public holiday policy, citing service delivery delays, and formed a task force to propose revisions within 25 days. Media Oversight: Nepal Television’s satellite bandwidth procurement probe report has been sent to the PMO and CIAA for further action. Health & Society: Dr. Govinda KC announced a 22nd hunger strike over unaddressed demands in medical education and health services.

Equity Tax Reversal: Nepal’s government has withdrawn the 3% equity tax on private education and health after backlash, with PM Balendra Shah saying it would not be implemented “for now,” while NC President Gagan Thapa welcomed the move and urged review of other “impractical” taxes like VAT on electricity. Digital Governance Push: The Cabinet unveiled sweeping digital governance reforms—services to be faceless, fully digital, transparent and time-bound—directing agencies to restructure via time-and-motion studies and integrate systems under a national digital platform. Education Policy & US Ties: Education Minister Sasmit Pokharel met the US Chargé d’Affaires to discuss deeper cooperation in education, technical-vocational training and sports, while also meeting private school bodies to strengthen stakeholder participation in reforms. Energy & Trade: IPPAN met India’s ambassador to discuss expanding cross-border electricity trade and hydropower cooperation; MCC work also advanced with completion of 46 transmission towers under the MCC Nepal Compact. Landlessness Management: The Land Problem Resolution Committee began a process to relocate displaced landless squatters from Kathmandu Valley back to home districts via a 35-day public notice. Women’s Rights & Justice: Women Minister Sita Badi held talks with hunger striker Binu Yadav, discussing health treatment, livelihood support and forwarding other issues to relevant bodies. Political Signaling: NCP Coordinator Prachanda said a new leftist collaboration environment is forming, with talks also underway with Nepali Congress on provincial power-sharing.