AGP Executive Report

Monsoon Watch: Nepal may see a delayed monsoon onset as El Nino strengthens, with experts warning that even a weaker monsoon can still bring dangerous bursts of rain, flash floods and landslides. China Ties: Foreign Minister Shisir Khanal met China’s Wang Yi in Beijing, with China pledging faster delivery of ongoing projects and support for Nepal’s sovereignty, governance and growth priorities. Border Tensions: In Susta, Nawalparasi, locals and authorities discussed alleged SSB entry into Nepali territory, with lawmakers pushing for a diplomatic, long-term fix and no further incursions. Budget Round-Up: All seven provinces unveiled 2026/27 budgets totaling about Rs 293 billion, led by Bagmati’s Rs 67.93 billion, with heavy focus on infrastructure, agriculture, health, education and governance. Trade Pressure on Tea: India’s tougher testing rules and export barriers are forcing Nepali tea factories to shut temporarily, threatening livelihoods as most tea exports go to India. Finance & Governance: NRB flagged rising trade-based money laundering risks; meanwhile, an asset investigation drive has pushed former officials to dig up old records. Kathmandu Housing Crisis: Evicted landless families in the valley issued a one-week ultimatum demanding resettlement and land rights, warning of return if rehabilitation fails. Public Services: Medical Education Commission ordered universities to stop overworking resident doctors beyond curriculum rules, after complaints of excessive hours. Transport & Safety: Bagmati Province plans online written driving tests and “faceless” transport services, while capital spending remains low at 32.53% with just one month left.

Parliament Budget Crunch: The House of Representatives has started ministry-wise talks on the Appropriation Bill 2083 BS, with MPs pushing for expenditure cuts and even symbolic reductions, while opposition lawmakers protest sovereignty and border-related remarks and demand answers on finance and foreign affairs. Foreign Policy in Beijing: Foreign Minister Shisir Khanal met CPC leader Liu Haixing and visited the Chinese Academy of Sciences’ Tibetan Plateau research institute ahead of bilateral talks, as Kathmandu seeks a “reset” in Nepal-China ties. Health System Delays: Vice-chancellor appointments in six health science institutes are stuck, leaving acting leadership in place and slowing key decisions like tenders and equipment purchases. Education Under Pressure: MPs warn that student-teacher ratio norms could force school closures in remote areas, while another MP alleges some ministries are adjusting budgets without timely publication of the program booklet. Economy & Daily Life: Finance Minister Wagle says economic activity has slowed after the Jana Andolan; Kathmandu Traffic Police fined 2,025 vehicles in 24 hours, collecting about Rs 1.048 million. Energy & Trade: Nepal will export 40 MW electricity to Bangladesh from Sunday midnight, but India has not approved extra 20 MW; meanwhile, tea exports to India are again hitting Ilam industries, triggering shutdowns. Governance & Services: KMC has begun deliberations on its 101-policy-point annual programme, and Bir Hospital ordered mandatory leave for resident doctors after 24-hour duty. Public Safety/Justice: The Supreme Court ordered immediate removal of sidewalk encroachments, and MPs and experts urged strengthening forensic capacity including DNA testing and a DNA database.

Weather & Safety: A man died after being electrocuted while using a drill machine in Makwanpur, while the Met Office says moderate rain with thunder and lightning may hit parts of Koshi, Bagmati, Gandaki and Lumbini. Monsoon Risk Watch: ICIMOD warns that even with a below-normal monsoon forecast, short bursts of intense rain can still trigger flash floods and landslides across the Hindu Kush Himalaya. Diplomacy & Culture: Bangladesh Embassy marked “Mango Diplomacy” by distributing 1,750 kg of mangoes to Nepali leaders and diplomats, and Nepal’s co-production film Elephants in the Fog was celebrated after winning a Cannes Jury Prize. Parliament & Governance: Opposition MPs pressed the government for clarifications on border remarks and alleged Indian security activity in Susta, while the HoR and NA are set to hold budget-related sessions today. Energy & Economy: IPPAN’s new chair Mohan Dangi unveiled an energy-sector roadmap, and the government is moving to tighten power purchase agreement rules. Health: Dengue cases have already topped 900 across 68 districts, and bird flu response has led to culling of about 700,000 fowls in 10 districts. City Updates: Kathmandu Metropolitan City rolled out new FY 2026/27 policies and programmes, aiming for a smarter, safer, cleaner capital.

Budget Watch: Nepal’s next fiscal year spending plan hinges on a steep revenue jump to Rs 1,580bn, but analysts point to weak collections so far—raising doubts about whether the target is realistic. Industrial Estates: After a government warning, industries started clearing long-pending estate fees; still, over Rs 880m remains unpaid by more than 300 firms. Kathmandu City Services: KMC says it will expand street lamps and high-mast lights for safer streets, while also rolling out wider health and wellness initiatives including a planned municipal hospital and more free/subsidized care. Infrastructure Update: The Nagdhunga–Sisnekhola Tunnel Road is set for mid-July opening, with emergency systems and staff training nearing completion. Banking Sector Risks: NRB warns of governance failures in BFIs, including report tampering and weak loan monitoring, as lending against share collateral rises 15.5% to Rs 162.53bn. Energy Diplomacy: Nepal’s 40MW power exports to Bangladesh begin, but an extra 20MW push is stalled after India cited transmission capacity limits. Public Health & Rights: Eye-care experts say blindness risk remains despite better access; separate reporting highlights stigma around HIV and TB still affecting respectful services. Road Safety: Three separate crashes across Nepal left three people dead. Climate Alert: ICIMOD warns that even with a weaker monsoon, intense bursts can still trigger floods and landslides across the HKH region.

Monsoon Watch: Nepal’s monsoon may arrive later than usual, with meteorologists saying westerly winds are still holding it back; even if it comes, early systems may be weak, but short bursts of intense rain could still trigger floods and landslides. Kathmandu Flood Risk: KMC has mapped 128 inundation-prone spots and flagged over 8,000 families at risk, urging drills, clear responsibilities, and better sanitation ahead of the rainy season. Health & Inclusion: KMC plans to promote healthy living via Ayurveda and alternative medicine, while Pride events push for new laws for sexual and gender minorities, including same-sex marriage and citizenship access. Economy & Daily Life: Food and crop production fell 6.76% in the first half of FY 2025/26, and NRB set Sunday forex rates with USD selling at Rs 152.48. Road Safety: Police recorded 11 deaths and 119 injuries in road accidents in 24 hours, and Kathmandu Valley traffic enforcement penalized 2,408 motorists, collecting Rs 458,000. Nepal-India & Nepal-China: Foreign Minister Shishir Khanal leaves for a four-day China visit, while Nepal and India reviewed cross-border railway progress in Kathmandu. Culture & Heritage: Five new intangible heritage elements were added to the national inventory, and the government highlighted art and literature as core to national identity.

Monsoon & Disaster Risk: ICIMOD warns Nepal and the wider Hindu Kush Himalaya may see below-normal rainfall in 2026, but hazards won’t ease—short bursts of intense rain, rising temperatures, and water stress could still trigger flash floods and landslides. HIV/TB Stigma: Stakeholders say stigma and discrimination around HIV and TB persist, leaving affected communities without equal, respectful services despite gains in prevention and treatment. Supreme Court on Trade Unions: The Supreme Court cleared the government’s move to dissolve trade unions in government agencies, ending an earlier interim halt. Nepal–India Rail Push: Nepal and India reviewed cross-border railway projects in Kathmandu, including progress on the Raxaul–Kathmandu broad-gauge link and steps toward Janakpur–Ayodhya passenger services. Infrastructure Tunnels: The government allocated about Rs 670 million for feasibility studies and construction of around a dozen tunnel road projects in 2026/27. Governance & Oversight: The Public Accounts Committee plans a “fast-track” push to reduce huge outstanding audit irregularities worth Rs 755.17 billion. Child Soldiers Law: The Supreme Court ordered laws on the Truth and Reconciliation Commission to explicitly prohibit child soldiers. Economy & Markets: HoR unanimously passed the Appropriation Bill, 2026; commercial banks’ net profit rose 18.16% to Rs 56.47 billion in 10 months; gold fell Rs 17,000 per tola over the week. Public Services: Government websites are now made accessibility-friendly with tools for people with disabilities and low vision. Crime & Safety: Police arrested 13 people with narcotics; a Kavre bus crash killed eight and injured 16, with an investigation committee formed. Foreign Policy & Culture: Foreign Minister Shisir Khanal is set to visit Beijing as Nepal-China ties deepen; Kathmandu also hosted events marking Pride Month and Italy’s National Day.

Climate & Disaster Risk: ICIMOD warns that even with below-normal monsoon rainfall forecast for parts of the Hindu Kush Himalaya, Nepal and neighbours still face high risks of flash floods, landslides and drought-flood swings from short bursts of intense rain and rising temperatures. Energy Sector Reform: The government says it is opening Nepal’s energy sector for private investment, including transmission, distribution and trading, and will act strictly against license holders who delay projects. Clean Air Push: Nepal is preparing the Nepal Clean Air and Prosperity Project (NCAP) with World Bank backing to cut air pollution and shift industry toward cleaner energy. Public Health Crisis: A rabies vaccine shortage is leaving patients turned away at facilities, with Sukraraj Hospital facing heavy daily demand and stock expected to run out soon. Land Governance: Cabinet has decided to implement the long-pending Rawal Commission report on encroached public and government land, with steps to maintain land records and enable legal action. Transport & Safety: Seven people died in a bus crash in Kavre’s Buchchakot, and Kathmandu Valley public transport is set for major restructuring. Bilateral Diplomacy: Bangladesh Embassy in Kathmandu shared over 1,750 kg of mangoes as a goodwill gesture, while India is funding a hospital in Humla. Sports: USA opened FIFA World Cup 2026 with a 4-1 win over Paraguay; Canada drew Bosnia-Herzegovina 1-1.

Rabies Crisis: Sukraraj Hospital is running critically low on anti-rabies vaccines as hundreds queue daily, with district supply efforts stalled after failed procurement—raising fears of a public health emergency. Public Transport Overhaul: Kathmandu Valley’s transport system is set for major restructuring under the KUTP, targeting route overlap, weak regulation, and low service quality. Road Safety & Enforcement: Valley traffic police booked 2,223 drivers and collected Rs 1.88 million in 24 hours, including cases for drunk driving, speeding, and signal violations. Parliament & Policy: The HoR unanimously moved forward the Intangible Cultural Heritage (Protection) Bill, 2026, while MPs pushed for timely fertilizer and urged full operation of Gautam Buddha and Pokhara airports. Land & Governance: Cabinet cleared the way to implement the Rawal Commission report, enabling reclaim of encroached public land in Kathmandu. Legal Rights: The Supreme Court directed laws to explicitly prohibit child soldiers and issued guidance on respectful terminology and reparations. Diplomacy: Foreign Minister Shisir Khanal will visit China June 14–17 for talks and an investment-focused outreach. Health & Consumer Watch: The commerce department fined 12 firms, including Singha Durbar’s central canteen, over quality issues. Accident: A bus crash in Kavrepalanchok killed eight and injured 16.

Aviation & Tourism: flydubai will launch daily direct flights to Pokhara from Dubai starting September 23, becoming the first carrier to serve the UAE–Pokhara route directly. 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% to Rs 5,809.71 billion. Health & Regulation: Nepal Medical Council suspended temporary registrations of three Chinese doctors tied to an illegally operating Baluwatar hospital, and moved to coordinate deportation. Public Safety: Kathmandu Valley traffic police penalized 2,223 motorists in 24 hours, collecting Rs 1.881 million. Justice & Finance: a case filed at Patan High Court alleges banking offences worth over Rs 4.21 billion linked to Jagdamba Steels loan misuse; separate money-laundering cases also target Deepak Bhatta and others. Sports & Culture: Nepali film “Elephants in the Fog” was honoured in Kathmandu after Cannes recognition, while World Cup 2026 kicks off tonight with Mexico vs South Africa. Weather: generally cloudy conditions with scattered rainfall and thunder/lightning possible in parts of the hills and Tarai.

Border Diplomacy: Foreign Minister Shishir Khanal told the National Assembly that PM Balendra Shah’s May 31 border remarks were about “cross border occupation,” stressing Nepal will settle disputes through diplomatic talks based on historical treaties and maps, and that Nepal is not seeking third-party mediation. Parliament Pressure: NA lawmakers demanded clarification and even removal of the remarks from records, warning the comments could affect foreign policy and invite foreign interference. Constitution Talks: A task force drafting the constitution amendment discussion paper held consultations with former prime ministers Pushpa Kamal Dahal, Madhav Kumar Nepal and Jhalanath Khanal. Holding Center Update: Home Minister Sudhan Gurung inspected the Balaju holding center, apologized to evicted squatters, and ordered tighter management and record-keeping. Everest Survival Story: Guide Hillary Dawa Sherpa says he was “forced to stay behind” after running out of oxygen near Camp 3. Finance & Markets: NEPSE fell 8.14 points; NRB reported foreign exchange reserves crossing Rs 3.7 trillion and began work on a sovereign wealth fund to use excess forex. Health & Regulation: Nepal Medical Council sealed Maria Hospital for operating without a permit; pregabalin now requires a prescription. Economy & Agriculture: Government issued a Minimum Support Price directive; it says chemical fertilizer supply is on track toward 600,000 metric tons. Digital Payments: India-Nepal UPI-NPI remittance linkage went live for instant cross-border transfers. Energy & Governance: Finance and customs transparency dominated PAC talks on EV import taxes; NEA was urged to recover Rs 50.01 billion in outstanding dues.

Monsoon Watch: South Asia’s monsoon may be drier than normal, but experts warn the risk is still high—short, intense downpours can trigger floods and landslides, even during dry spells. Parliament & Diplomacy: The House resumed after obstruction, and Foreign Minister Shisir Khanal briefed lawmakers on his India visit, including Nepal–India agreements on cross-border digital payments and other cooperation, while also clarifying PM Balendra Shah’s border remarks. Budget Row: Finance Minister Swarnim Wagle told MPs he welcomes any investigation into alleged budget errors and EV-related claims, arguing technical mistakes shouldn’t be treated as corruption. Traffic Crackdown: Kathmandu Valley traffic police penalised 2,297 drivers in 24 hours, collecting about Rs 2.02 million. Energy Infrastructure: MCA-Nepal has started construction of two substations and a 297-km transmission line under the MCC Nepal Compact. Economy Signals: BFIs’ private-sector lending grew only 5.7% in the first 10 months, below the 12% target. Sports: Nepal were knocked out of ACC Women’s T20 Asia Cup qualifying after a 56-run loss to Thailand. Heritage Work: Workers have begun removing thick lime mortar from the dome of Swayambhunath Stupa, using wooden tools to protect the structure. Markets: Gold and silver prices fell in Nepal’s market; Kalimati set wholesale rates for fruits and vegetables.

Budget Row & Parliament: Finance Minister Swarnim Wagle denied any budget leak before the May 29 presentation, saying amendments only corrected omissions/errors and calling the claims a coordinated smear campaign. House of Representatives: After opposition obstruction ended, the HoR resumed and MPs are now raising issues in the emergency hour, including human trafficking, violence against women, foreign employment fraud, and religious conversion. Nepal-India Border Clarification: Foreign Minister Shishir Khanal told parliament Nepal supports a bilateral, diplomatic approach and rejected third-party mediation, while explaining PM Balendra Shah’s remarks as linked to cross-border occupation mapping. Governance & Compliance: The Property Inquiry Commission extended asset-declaration deadlines to mid-July (Asar end), with no further extension. RSP Provincial Convention Halted: Bagmati RSP’s convention was postponed after disputes over the voter list. New Ministry Starts Work: The newly formed Ministry of Science, Technology and Innovation began operations with Mahabir Pun as minister and an O&M survey underway. Digital Inclusion: Government websites and apps added accessibility tools for users with disabilities and low tech skills. Tourism & Connectivity: Flydubai got permission for daily Pokhara–Dubai flights from Sept 23. Everest Update: Sherpa Dawa Sherpa was moved out of ICU as questions grow over rescue delays.

Cabinet Shake-up: Nepal PM Balen inducted two new ministers—Sudhan Gurung as Home Minister and Mahabir Pun as Science, Technology and Innovation—after a probe cleared Gurung, bringing fresh focus to sensitive cases including the 2001 Narayanhiti royal massacre. Royal Massacre Probe: Gurung says the file will be reopened by reviewing prior investigation reports, alongside promises to push other pending security and justice matters. India-Nepal Ties: Nepal restricted mango imports from India over pesticide residue concerns and weak quarantine capacity, following Japan’s similar move; officials say it’s helping local growers even as supply may not fully meet demand. Public Health & Safety: Bird flu response continues with hundreds of thousands of poultry destroyed as H5N1 spreads to more districts, while Kathmandu Valley remains considered vulnerable. Economy Watch: Inflation hit 5.04% in mid-May, driven by petroleum-linked price hikes; NRB also reports foreign reserves rising sharply and sufficient import cover. Governance & Services: Kathmandu declared itself free of street-dependent homeless people, and a draft ordinance proposes mandatory civil servant retirement at 55 (then 60). Everest Update: Dawa Sherpa, presumed dead after six days missing, is out of ICU as questions grow over rescue delays. Weather: Rain and thunderstorms are likely in several provinces today.

Everest Update: Nepali mountaineer Dawa Sherpa, who survived six days after being abandoned on Everest, has been moved from ICU to a ward and is slowly recovering, though his family and the climbing community are still furious over the rescue delay. Government Shake-up: Prime Minister Balendra Shah has expanded and reshuffled portfolios, with Sudhan Gurung reappointed as Home Minister and Mahabir Pun sworn in as Science, Technology and Innovation Minister; Gurung also announced new task forces and steps to strengthen CIB. Parliament Tensions: National Assembly lawmakers demanded a probe after allegations that tax rates were altered in the budget speech, while the House of Representatives was adjourned amid opposition protests over border remarks. Health Insurance Reset: Health Minister Nisha Mehta says a “fresh start” is coming to the health insurance scheme, with pending payments to be cleared by Ashar to avoid hospitals shutting services. Economy Watch: Nepal’s remittances rose 41.2% to over Rs 1.91 trillion in 10 months, but inflation jumped to 5.04% and the trade deficit widened as imports outpaced exports. Finance & Business: Cabinet endorsed Civil Service (16th Amendment) Regulation 2083; private sector welcomed the budget in principle but warned about weak implementation, while NEPSE edged down and electricity arrears and industrial dues remain a concern.

Street Livelihood Crackdown: Kathmandu Metropolitan City declared its area free of street dwellers, signing an agreement with Nepal Police, the district administration and Manavsewa Ashram to manage people found begging or living on streets. Cabinet & Governance: The government endorsed the Civil Service (16th Amendment) Regulation, 2083, and also approved permissions for four hydropower projects to use national forest land. Anti-Corruption: CIAA filed a corruption case against Birgunj Metropolitan Mayor Rajeshman Singh and others over alleged false birth registration used to obtain citizenship. Everest & Media Ethics: A Nepali Everest guide, presumed dead, was found alive after six days; the BBC is facing backlash for broadcasting an ICU interview without family consent. Diplomacy: Foreign Minister Shisir Khanal held virtual talks with the UK on British Gurkhas’ pension grievances and urged a fair, mutually agreeable solution. Economy & Money: IMF completed its final ECF review for Nepal, approving about $42.9m; meanwhile, NEPSE fell again and LPG cylinder policy costs are hitting consumers. Local Development: The federal government allocated NPR 424.27 billion for intergovernmental fiscal transfers to provinces and local levels for FY 2026/27. Tourism & Culture: WFP launched a climate innovation accelerator for food security, while Nepal’s Asian Games men’s cricket qualifier win and new trekking trail feasibility studies kept the spotlight on travel and sports.

Health Crisis: CT scan services at Bir Hospital have been shut for a month after both machines broke down, pushing patients to the Trauma Center and private hospitals and raising costs. Markets: NEPSE slid again, down 20 points to 2,735.41, as trading turnover fell sharply. Energy & Utilities: The government says electricity arrears tied to dedicated feeders/trunk lines have reached Rs 26.95 billion, and the Energy Ministry has ordered NEA to prioritize recovery; separate reporting puts overall arrears at Rs 50.1 billion. Economy & Policy: The budget earmarks nearly Rs 4 billion for science, technology and innovation, with a new Nepal Enterprise Facility for startups. Trade & Revenue: Rasuwagadhi Customs collected Rs 10.80 billion in about 11 months, with major imports from China including garments, electrical goods, fruits and EVs. Insurance: Nepal Insurance Authority faces a backlog of unresolved claims, with 543 cases under its jurisdiction as of mid-May. Politics & Federalism: Janamat Party protests at Maitighar for full local government autonomy and submits a memorandum demanding implementation of past agreements. Parliament: HoR sessions were disrupted and adjourned over border remarks, with demands for an apology. Infrastructure: Nagdhunga–Sisnekhola tunnel is nearing operation, with preparations and staffing underway for August. Sports: Nepal won the Asian Games Men’s Qualifier final against Hong Kong by 19 runs (DLS).