Kathmandu — Nepal’s growing dependence on external loans for development has raised new concerns as major lenders increase interest rates and tighten concessional terms. For years, Nepal enjoyed low‑cost loans because its economic growth and job creation remained weak. The International Monetary Fund recently said Nepal’s external debt remained in a “comfortable” range. That status gave the government room to borrow more for infrastructure and speed up development. That window is now narrowing. A key reason Nepal’s external debt carried low risk was the combination of cheap interest rates and long repayment periods. Those terms are changing. The World Bank…
Author: Nepal Monitor
China’s customs administration informed Nepal’s Ministry of Agriculture and Livestock Development that exported buffalo meat must come from animals born and raised in Nepal and be under 30 months of age. This strict condition has halted preparations by Nepali meat businesses, which had relied on importing live buffalo from India for slaughter and processing before export. Official data shows Nepal’s buffalo population is declining. Annual production is about 116,000 metric tons, barely enough to meet domestic demand. Export would require importing up to 70 percent of buffalo from India, but China’s rules now prohibit that practice. Nepal must instead rely…
On Wednesday, Paudel met with chief executive officers from all 20 commercial banks, along with leaders from development banks and finance companies. He noted that more than 11 trillion rupees remain stuck in the system without flowing into loans. He called on bankers to take an active role in increasing credit supply. Paudel stressed that agriculture should be the priority sector. He said that raising agricultural lending above 50 percent would help keep the economy active and support long-term stability. Bankers confirmed that the central bank also wants to see more loans directed toward infrastructure and private sector projects. Bankers…
Huawei, the main contractor for the 19-billion-rupee project, was supposed to be blacklisted under the Public Procurement Act for failing to meet contract terms. Instead, political protection allowed the company not only to avoid penalties but also to secure billing rights. The project has suffered from poor quality and mounting costs. Nepal Telecom continues to pay mandatory regulatory fees while customers face weak service. The company has been paying more than 100 million rupees annually for unused WiMAX frequency, held for small cell equipment that Huawei never installed. Huawei’s partner company, CCSI, was contracted to install about 6,000 small cell…
Blackheath’s award-winning Nepalese restaurant, Everest Inn, is delighted to announce the return of its famed Laughing Buddha Statue, which will be proudly displayed at the restaurant from 13th January to 12th February 2026. For many years, the historic statue stood at the entrance of the former Laughing Buddha Chinese Restaurant, becoming a familiar and cherished symbol of joy. When Everest Inn later took over the site, owner Yadav ensured the statue was lovingly preserved, relocating it to his own garden where it has remained ever since – still continuing the time-honoured tradition of rubbing its bely for good luck. Over…
Kathmandu — Nepal’s anti-corruption agency has charged a Chinese state-owned company and dozens of officials for manipulating costs and bypassing fair competition in the Pokhara International Airport project. The Commission for the Investigation of Abuse of Authority (CIAA) filed charges against 55 individuals, including former ministers and senior bureaucrats, along with China CAMC Engineering. The agency alleges they inflated the airport’s cost by over $74 million and violated procurement laws. The project was funded by a $216 million loan from China’s Export-Import Bank. According to the agreement, the loan terms allowed only Chinese firms to bid, and the cost estimate…
Kathmandu — The Ministry of Finance has directed provincial and local governments not to impose taxes, fees, or charges on goods transported through their territory when the route is used only for transit. The ministry issued a clarification stating that collecting such charges violates the constitution and existing laws. Officials emphasized that goods moving from one district or local government to another cannot be taxed simply for passing through. The directive was sent to provincial governments through the Office of the Prime Minister and Council of Ministers, and to all local governments through the Ministry of Federal Affairs and…
Kathmandu, Nepal — December 16, 2025 — Nepal’s government spent only 28.74% of its annual budget allocation by the end of the fifth month of the current fiscal year, according to the Office of the Financial Comptroller General. Capital spending was especially low. Out of NPR 407.88 billion allocated for development projects, the government spent just NPR 33.87 billion, or 8%. This slow pace has raised concerns about delays in infrastructure and public service delivery. Recurrent spending reached NPR 398.04 billion, or 33.7% of the NPR 1.8098 trillion allocated. Financial management expenses totaled NPR 132.53 billion, or 35.32% of the…
Kathmandu, Nepal — December 16, 2025 — Nepal’s Ministry of Energy, Water Resources and Irrigation has canceled 22 stalled irrigation contracts after years of delays. The total value of the terminated agreements exceeds NPR 14.23 billion. Minister Kulman Ghising directed government offices to end contracts where contractors failed to begin or complete work. His order aimed to stop the pattern of signing deals that leave public projects unfinished. The canceled contracts include: Six from the Babai Irrigation Project Fifteen under the Janakpurdham-based Irrigation and Water Resource Management Project One from the Sunkoshi-Marin Diversion Project The Department of Water Resources and…
Kathmandu, Nepal — December 16, 2025 — WorldLink, Nepal’s largest fixed broadband internet provider, has been accused of evading taxes across multiple categories. Government investigators say the company failed to pay required royalties and fees, and also underreported income tied to those charges. According to the Department of Revenue Investigation, WorldLink avoided more than 3 billion Nepalese rupees in taxes. The department’s report followed a long review of the company’s accounts. Officials found that WorldLink claimed exemptions beyond what the law allows, using maintenance fees collected from customers to reduce its liability. Under Nepal’s Telecommunications Act, service providers must pay…