Kathmandu: Talks between the government and transport entrepreneurs ended without agreement on Monday, with transport associations announcing that the strike will continue on Tuesday.



According to participants in the negotiations, no consensus was reached on the first and most critical demand — the withdrawal of the ride-sharing bill introduced by the Gandaki Province government. Transport entrepreneurs have been demanding the bill be scrapped, citing opposition to provisions that allow vehicles with red number plates to carry passengers.



While discussions on other points reportedly made progress, the deadlock over the key demand led to the failure of the talks.



Saroj Sitaula, Senior Vice President of the Nepal National Transport Entrepreneurs Federation, said talks are ongoing and have been progressing in a positive manner. A task force was formed during Monday's discussions to move negotiations forward.



The next round of talks is scheduled for Tuesday at 10:30 AM.

Transport strike to continue as talks with government fail

Kathmandu: The World Bank’s Board of Executive Directors approved two projects for Nepal on May 29 totaling $257 million aimed at enhancing electricity distribution services and improving irrigation services to boost agricultural productivity.



The Electricity Supply Reliability Improvement Project ($120 million) will strengthen the electricity distribution network and enhance electricity supply to users in Koshi, Bagmati, Karnali, and Sudurpashchim provinces. The project, led by Nepal Electricity Authority, will focus on constructing new distribution substations, upgrading existing networks, and implementing an automated system for real-time monitoring of distribution networks to enhance operational efficiency.



The Modernization of Rani Jamara Kulariya Irrigation Project - Phase 3 ($137 million) aims to improve irrigation services and agricultural productivity by expanding access to year-round irrigation services, increasing farm productivity, and enhancing climate resilience in Kailali district, Sudurpaschim Province. Jointly implemented by Nepal’s Department of Water Resources and Irrigation and Department of Agriculture, this project will scale year-round irrigation to an additional 17,500 hectares benefiting 160,000 people.



“An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal’s sustainable development,” said David Sislen, Country Division Director for Maldives, Nepal, and Sri Lanka. “The projects emphasize improved connectivity and the promotion of clean electricity generated from hydropower, alongside integrated agricultural support services to farmers to help build resilience against climate and disaster risks.”



The projects also include capacity-building initiatives for the Nepal Electricity Authority and the Water Users Association to promote innovative solutions and strengthen institutional systems for the effective management and sustainability of infrastructure.

World Bank pproves $257 million to improve electricity and irrigation services

Kathmandu: The government has announced a budget of Rs 1.964 trillion for the fiscal year 2082/83. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel presented the revenue and expenditure estimates during a joint session of the federal parliament on Thursday.



The budget outlines a range of policy reforms, economic reliefs, and infrastructure priorities, while also aiming to tighten fiscal discipline. It does not include a salary hike for government employees, but the monthly inflation allowance has been increased to Rs 5,000.



In a significant policy shift, the government raised the minimum age to receive elderly allowance from 68 to 70 years, citing the need to control the growing social security burden.



Taxes on electric vehicles remain unchanged, signaling continued support for green mobility. However, excise duties on alcohol, cigarettes, and tobacco will rise. Government employees and officials will also be barred from going on foreign visits using funds from public institutions.



To promote digital transformation and innovation, the government has removed the tax on digital transactions and reduced related fees. IT-based industries and hospitality businesses will enjoy income tax and electricity tariff exemptions.



Startups with an annual turnover of up to Rs 100 million will be granted a five-year income tax exemption. Additionally, startup entrepreneurs will have access to loans at a concessional 3% interest rate.



The budget gives top priority to infrastructure. Large highway projects have been emphasized, and the government aims to complete the Terai–Madhesh Expressway by 2084. A feasibility study will be conducted for introducing a podway system as an alternative to the proposed Kathmandu–Hetauda ropeway.



Key provisions in the health sector include the expansion of specialized treatment services in all provinces and the establishment of burn units in at least one hospital per province. The health insurance program will now include all social security programs, and the government will clear pending insurance dues.



In education, the Secondary Education Examination (SEE) will be decentralized and conducted at the provincial level. Scholarships in medical education have been announced for marginalized Musahar, Dom, and Chamar communities. A new umbrella law will be introduced for higher education reform, and foreign students will receive free visas.



To support women and green energy, the government has made business registration in women’s names free and has offered customs duty exemptions on equipment needed for green hydrogen industries.



Other notable announcements include:



<ul>
<li>Only 5% income tax for Nepali residents offering services abroad</li>
</ul>



<ul>
<li>Interest and penalties waived for industries in financial trouble</li>
</ul>



<ul>
<li>Mandatory annual KYC (Know Your Customer) update</li>
</ul>



<ul>
<li>Students allowed to work 20 hours a week</li>
</ul>



<ul>
<li>Ban on the production of plastic thinner than 40 microns from Mangsir 1 (mid-November)</li>
</ul>



<ul>
<li>Expansion of consumer courts to all provinces</li>
</ul>



<ul>
<li>Addition of 942 MW electricity to the national grid within a year</li>
</ul>



<ul>
<li>Electricity tariffs to vary based on time of use</li>
</ul>



The government’s budget signals a shift toward long-term planning, economic discipline, and targeted support, while also addressing social inclusion and sustainability.

Nepal's budget for FY 2025/26, prioritizes economic reforms and infrastructure

Kathmandu: In a major policy shift, the government has increased the minimum age for receiving the elderly allowance from 68 to 70 years, reversing an earlier populist decision made ahead of the 2022 elections.



Announcing the budget for Fiscal Year 2025/26 at the Joint Session of the Federal Parliament on Thursday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that only citizens aged 70 and above will now be eligible for the social security benefit.



The previous age threshold of 68 was introduced by the Sher Bahadur Deuba-led government as part of an election pledge. However, officials say the policy placed a heavy burden on state finances and was not sustainable in the long run.



The High-Level Commission on Economic Reforms had also recommended restoring the age limit to 70, arguing that such a move was necessary to ensure economic discipline and reduce fiscal pressure.



While the decision is likely to trigger political debate, it is being viewed as a sign that the government is willing to take tough measures to address long-term economic challenges.

Nepal govt raises elderly allowance age limit from 68 to 70

Kathmandu: The government has decided to increase the monthly dearness allowance to civil servants by Rs 3,000, now reaching Rs 5,000. It was announced by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel while unveiling the budget for the fiscal year, 2025/026 today.



He mentioned that pressure on resource management had hindered increasing salaries of the civil servants.



Presenting the annual revenue and expenditure estimate (budget) for the upcoming fiscal year, 2025/026 in the joint session of the federal parliament today, Paudel admitted, "Although there was a need to increase incentives to the civil servants in a timely manner, the pressure on resource made it impossible to increase salaries as expected."

Rs 3,000 dearness allowance added per month to govt employees

Kathmandu: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has presented the Economic Survey for the current fiscal year before the House of Representatives.



He presented the Survey before the today's session of the lower house. The Survey projects that economic growth rate for the current fiscal year will be 4.61 percent.



According to the Finance Minister, all provinces except Madhesh, Koshi, and Sudurpaschim are expected to secure economic growth rates higher than the national average.



The size of the national economy is expected to reach Rs 6,107 billion in the current fiscal year. As the Minister apprised the session, it has been estimated that service sector will have the highest 62.01 percent contribution to the Gross Domestic Product (GDP) followed by 25.16 percent from agriculture and 12.83 percent from the industrial sector.



As per the data until the end of Fagun in the current fiscal year (mid-March, 2025), the per capita gross national income soared to USD 1,517, and the average consumer inflation rate was 4.72 percent, according to the Economic Survey.

Economic Survey projects 4.1 percent economic growth in current fiscal year

Kathmandu: The government has proposed a total budget of Rs 1.964 trillion for the upcoming fiscal year 2082/83. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel presented the annual revenue and expenditure estimates during a joint session of the federal parliament on Thursday.



Out of the total allocation, Rs 1.180 trillion (60.1%) has been set aside for recurrent expenditure, which covers day-to-day government operations. Similarly, Rs 407.89 billion (20.8%) has been allocated for capital expenditure to fund development projects. An additional Rs 375.24 billion (19.1%) will go towards financing, which includes debt servicing and other financial liabilities.



This proposed budget represents a 5.6% increase compared to the current year’s allocation and an 18.2% rise from the revised estimates.



In a bid to strengthen federalism, the government has also earmarked Rs 417.83 billion for fiscal transfers to provincial and local governments.



To finance the estimated expenditure, the government plans to collect Rs 1.315 trillion through internal revenue sources. It also expects to receive Rs 53.45 billion in foreign grants. The remaining Rs 595.66 billion will be managed through borrowing — Rs 362 billion from domestic sources and Rs 233.66 billion from foreign loans.

Nepal govt unveils Rs 1.964 trillion budget for Fiscal Year 2082/83

Kathmandu: ICRA projects the full-year demand growth for FY2026 at 5.0-5.5%, lower than its expectation for the GDP growth for this fiscal (6.5%).



This is owing to the early onset of the monsoon and expectations of an above average monsoon, which dampens the demand for cooling as well as demand from the agriculture segment. While the demand growth in FY2026 is expected to be higher than the 4.2% reported in FY2025, it is expected to trail the over 8.0% growth seen during FY2022-2024.



The rating agency forecasts the all-India thermal plant load factor (PLF) level to remain flat at 70.0% in FY2026 against 69.5% in FY2025, given the healthy growth in generation expected from the renewable sources and 9-10 GW capacity addition expected in the thermal segment in FY2026.



Commenting on the demand growth outlook, Vikram V, Vice President &amp; Co-Group Head - Corporate Ratings, ICRA, said: “Over the next five years, ICRA expects the electricity demand to achieve a healthy compounded annual growth rate (CAGR) of 6.0-6.5%, higher than the ~5.0% CAGR achieved over the past decade, driven by the demand from rising adoption of electric vehicles (EVs), green hydrogen (GH) and the increase in data centre capacity.



These three segments are expected to contribute to 20-25% of the incremental demand over the next five-year period from FY2026 to FY2030. The growth in demand for grid capacity is expected to be offset to some extent, by the rising adoption of rooftop solar and off-grid projects, driven by schemes such as the Pradhan Mantri Surya Ghar Yojana.”



The EV segment is expected to witness an increase in penetration across the segments, with three-wheelers leading the adoption followed by two-wheelers, e-buses and passenger vehicles. With respect to GH, ICRA considered a gradual scale-up in capacity, given the relatively higher cost of GH against grey hydrogen currently. While a major portion of the incremental demand is expected to be met through increase in the renewable energy (RE) capacity, the Central and state governments are encouraging new thermal power projects to ensure sufficient buffer in the installed capacity to meet the growing demand.



This is reflected in the new project announcements by public sector undertakings and private power producers as well as long-term power purchase bids called by state distribution utilities after a decade of dormancy.



ICRA expects the generation capacity addition to reach an all-time high of ~44 GW in FY2026, a sharp step up from the previous high of 34 GW in FY2025, with the overall installed power generation capacity reaching close to 520 GW by March 2026.



The thermal segment is expected to add 9-10 GW capacity in FY2026, with the balance largely contributed by the RE segment. While RE would remain the key driver of the generation capacity addition, going forward, the thermal segment has seen an increase in under-construction capacity over the past 12 months and currently stands at over 40 GW.



Given these factors, ICRA maintains a Stable outlook on the thermal power segment.



The average spot power tariffs in the day ahead market (DAM) of the Indian Energy Exchange moderated to Rs. 4.4 per unit in FY2025 from Rs. 5.2 per unit in FY2024, given the slowdown in demand growth and higher capacity.



Also, the coal stock level for the domestic power plants is at a five-year high at ~20 days as on May 21, 2025, following the improved supply and slowdown in thermal generation growth. The contraction in the open market coal prices and the improved coal stock situation are expected to keep the short-term tariffs at a similar level in FY2026.



Discoms' book losses at the all-India level had witnessed a decline in FY2024 over FY2023, led by higher tariff and subsidy along with the revenue grants from the state governments to fund previous year’s losses.



However, the gap between the cost of supply and tariff realisation persists across most states. Moreover, the gross debt for state-owned discoms' witnessed a sharp increase to Rs.



7.4 trillion as of March 2024 from Rs. 6.6 trillion in March 2024, driven by debt availed to clear the past dues to generators and to fund working capital and capex amid continued losses. Such high debt levels are unsustainable for discoms, given their current revenues and profitability.



Commenting on the distribution segment, Vikram V said: “The tariff orders for FY2026 have been issued in 19 out of the 28 states as of May ’25, reflecting a moderate progress in issuance of tariff orders.



Despite the loss-making operations of the discoms, the tariff hikes approved for FY2026 remain muted across most states, similar to FY2025. ICRA expects the cash gap[1] per unit for the discoms at the all-India level to remain high at 35 paise per unit in FY2026. ICRA’s outlook for the power distribution segment remains Negative amid limited tariff hikes and continued loss-making operations. The progress in the smart metering programme along with the timely implementation of fuel &amp; power purchase cost adjustment framework would play an important role in improving the discom finances, going forward.”

ICRA: Power demand to rise 6–6.5% in 5 years, driven by EVs, data centres &amp; green hydrogen

Kathmandu, Pabitra Guragain/RSS : The need of considering abortion from a rights-based approach and removing it from the legal framework of criminalization has been stressed.



Speaking at a recent discussion themed "My Body: My Right – Safe Abortion and Decriminalization," organized here on Tuesday, the participants dubbed abortion as a fundamental need, not a privilege, and called for its full decriminalization.



They advocated for the explicit inclusion of the right to abortion in the Safe Motherhood and Reproductive Health Rights Act, arguing that a woman should possess the right to terminate unwanted pregnancy.



The event brought together medical professionals, rights activists, legal advocates, and journalists to highlight the legal barriers hindering the advancement of women's bodily autonomy in regard to the abortion rights.



In his presentation, Forum for Women, Law and Development (FWLD) Executive Director and Advocate Sabin Shrestha underscored the urgent need to fully decriminalize abortion, particularly in three critical circumstances –pregnancy on rape, fetus non-viable or having severe abnormalities, and a serious risk to the woman’s life.



While abortion up to 12 weeks on consent of the pregnant woman is already legalized in Nepal. The Safe Motherhood and Reproductive Health Rights Act 2018 allows for abortion up to 28 weeks under specific circumstances—such as threats to the woman's physical or mental health, fetal impairment, or cases of rape or incest. However, the Penal Code 2017 decriminalizes abortion up to 18 weeks in cases of rape or incest.



Advocate Shrestha highlighted the discrepancies between the two laws, calling it a source of confusion and legal ambiguity.



Presenting the case of a 12-year-old rape survivor who was forced to give birth to a child due to decriminalization of termination of the fetus up to 28 weeks, he pressed the need for totally decriminalizing abortion in some specific conditions.



Chairperson of Nepal Society of Obstetricians and Gynecologists, Dr Padam Raj Panta said it is a grave challenge to improve the maternal mortality rate when a single woman dies of pregnancy complications. Speaking as a panelist, he shed light on the need for decriminalization of abortion in specific conditions.



“Abortion is legally allowed up to 28 weeks in special cases, but sometimes, out of a sense of humanity, medical professionals are compelled to prioritize the life of the mother over that of the fetus,” he stated.



Advocate Sonali Regmi, a reproductive health rights specialist, emphasized that abortion is a matter of self-dignity, personal decision-making, bodily autonomy, and security of woman. She argued that abortion must be treated as part of women’s reproductive health care and broader life cycle rights.



Regmi also challenged prevailing ‘myths’—particularly those spread by media—that underage or unmarried girls are the primary seekers of abortion services. In contrast, researches reveal that 55% of abortion seekers are women who already have numbers of children. Regmi affirmed that denying abortion access violates fundamental human rights, including the rights to dignity, equality, education, and employment of woman.



Prabhakar Shrestha, legal advisor to the Center for Reproductive Rights, stressed the essence of policy reforms regarding abortion facility in accordance with the constitutional and international commitments on women's rights.



Sancharika Samuha Chair Kamala Panthi concluded that most women seek abortions simply because of their need. “It's not a choice, but sensitively rooted in necessity,” she asserted.



The gathering echoed the need for addressing legal ‘gaps’ regarding rape when it comes with minor girls, and rape survivors and the woman with disabilities. Some of the participants raised concern over the prevalence of sex-selective abortion and lack of safe abortions including in the rural areas.



The programme was jointly organized by Sancharika Samuha Nepal, the Center for Reproductive Rights, and the Forum for Women, Law and Development (FWLD).

'Abortion is a need, not a privilege, and should be fully decriminalized'

Kathmandu: The Nepali Congress (NC) has denied any involvement of Home Minister Ramesh Lekhak in the visit visa scandal.



A meeting of both former and current office bearers of the party, held at the private residence of Party President Sher Bahadur Deuba in Budhanilkantha today, concluded that Minister Lekhak, who represents the party in the NC-UML coalition government, had no role in the scandal.



During the meeting, the Minister presented a detailed statement regarding his alleged involvement in the scam, according to NC Spokesperson Dr Prakash Sharan Mahat. After reviewing his clarification, the party leadership decided there was no evidence linking him to the scandal.



The meeting also called for an impartial investigation into the matter, urging that those found responsible be brought to justice.



It is worth noting that on May 21, Tirtha Raj Bhattarai, the Chief of the Tribhuvan International Airport (TIA) Immigration Office, was interrogated by the Commission for the Investigation of Abuse of Authority (CIAA) for allegedly facilitating illegal foreign travel of Nepali nationals on visit visas.



It was later discovered that he had been in regular contact with officials in the Ministry, raising suspicions about the Minister's involvement in the scandal.

Home Minister denies involvement in visit visa scandal: NC

Kathmandu: Minister for Physical Infrastructure and Transport, Devendra Dahal, has announced that the flyover construction at Gwarko, Lalitpur, will be completed by mid-June.



During his inspection of the project site this morning, Minister Dahal said that no further delays will be allowed in the completion of the construction work. He added that, barring any unforeseen circumstances, the flyover should be ready for vehicle operations by mid-June.



Secretary at the Ministry, Keshab Kumar Sharma, stated that some technical issues had been identified during construction but have since been sorted out. Director General of the Department of Roads, Ramhari Pokharel, highlighted the project’s significance for traffic management in the Kathmandu Valley.



According to the Department, the major construction work on the project has now been completed. The project, costing Rs 176 million, was initially scheduled for completion by February 23, 2024, but the deadline was not met.

Gwarko's flyover will be readied for vehicular movement by mid- June: Minister Dahal

Kathmandu: Home Minister Ramesh Lekhak has said he will resign from his post and retire from politics if any corruption allegations against him are proven true.



Speaking on Saturday, Lekhak responded to recent media reports linking him to a visit visa scam at Tribhuvan International Airport’s immigration office.



“If even a single instance of financial irregularity in any part of my public or political life is proven, I will leave politics altogether,” he said.



The statement came after the Rastriya Swatantra Party (RSP) accused Lekhak and his secretariat of involvement in human trafficking through the misuse of visit visas and demanded his immediate resignation for an impartial investigation.



Meanwhile, the Ministry of Home Affairs has denied any involvement of its leadership in the case.

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