AGP Executive Report

Nepal–India Business Ties: Nepal’s PM Balendra Shah and FM Shisir Khanal sent Independence Day greetings to India, underscoring deeper economic cooperation and connectivity as India marks 80 years since 1947. Financial Sector: Banking, Finance and Insurance Institute of Nepal (BFIN) held its 8th anniversary international conference in Kathmandu on “Future-Ready Financial Systems,” focusing on stability, digital transformation and sustainability. Diaspora Investment Push: Finance Minister Dr. Swarnim Wagle urged Nepalis abroad to invest in tourism, IT, green energy and high-value agriculture, saying the government is creating an investment-friendly environment through new laws and tax reforms. Telecom Results: Nepal Telecom reported a sharp jump in Q4 FY 2082/83 net profit to NPR 8.86 billion (+47.58%) alongside higher operating income. Energy & LPG Supply: Nepal Oil Corporation began distributing cooking LPG from five Kathmandu locations amid shortage, but faced public backlash after making citizenship/ID mandatory for gas collection. Electricity Market Reform: The government is preparing legal amendments to allow private sector participation in electricity trading, with IPPAN pushing for faster permissions. Tourism & Transport: Shubha Adhikari Travels launched luxury buses in Pokhara with onboard facilities, while NATTA elected Bharat Jung Pandey as president for 2026–2028. Policy for Gen-Z Families: Finance Ministry introduced concessional loans up to Rs 5 million for families of Gen-Z martyrs and injured to start self-employment businesses.

Agniveer Recruitment Deadlock: India’s Army Chief visit to Nepal has reignited calls to reopen recruitment of Nepal-domiciled Gorkhas after nearly six years, with Kathmandu citing treaty and security concerns. Hydropower IPO Delays: A long Sebon backlog is squeezing hydropower developers, with IPO and rights-issue approvals pending for projects totaling about 4,000 MW and forcing costly bridge financing. NEPSE Pullback: Nepal Stock Exchange fell 7.37 points to 2,643.83 on Friday; 344 companies traded Rs 1.53bn, with MEPDL up and SKHL down sharply. Ncell Share-Deal Report in Court: Nepal’s Supreme Court issued an interim order blocking publication of the Ncell investigation report, citing commercial confidentiality and privacy risks. LPG Gas Shortage Row: Government and the LP Gas Industry Association say supply is normal and imports are up, blaming hoarding and fear for queues; Nepal Oil Corporation will distribute gas from multiple Kathmandu locations. Private Sector Push: Chief Secretary Govinda Bahadur Karki said outdated laws and corruption control are key to improving the business climate and protecting private property. Dairy Supply Pact: NACCFL, SKBBL and DDC signed a tri-party deal to move 15,000 litres of milk daily from Aug 17 and settle dues to farmers. Tourism as Growth Engine: Speaker Dol Prasad Aryal urged NATTA and stakeholders to tackle policy and structural hurdles to boost foreign earnings.

Private Investment Security: The Cabinet approved a “Private Investment Protection and Promotion Strategy” to restore investor confidence by guaranteeing physical security for industries and business assets after past protest-linked vandalism. Tourism Push: Culture, Tourism and Civil Aviation Minister Khadakraj Poudel pledged closer private-sector partnership, wellness tourism training plans, and said Nepal Airlines will be run via public-private partnership. NEPSE Watch: Nepal Stock Exchange slipped slightly—NEPSE fell 7.37 points to 2,643.83 on Friday; turnover rose to about Rs 4.28 billion. LPG Supply Calm: The Ministry of Industry, Commerce and Supplies urged consumers not to hoard LPG, saying imports and daily supply are above normal; the LP Gas Industry Association echoed “no shortage,” blaming fear-driven stocking. Banking Results: National Commercial Bank reported net profit of Rs 4.55 billion in FY 2082/83 Q4, citing loan growth and lower impairment charges. Health Insurance Payments: NPR 3.56 billion was paid to 376 health facilities under the health insurance program. Telecom Digital Service: Nepal Telecom started online ownership transfer for postpaid SIMs, with *9# for owner check and OTP-based verification. Cybercrime & Security: Police recorded 20,526 cybercrime complaints (mid-July 2025 to mid-July 2026) and arrested 155; separately, AI-driven automated cyberattacks were reported abroad. Cross-border Crime: Delhi Police dismantled an Indo-Nepal charas syndicate, seizing 106.25 kg worth about Rs 109 crore and arresting four Nepalese nationals. Mining Revenue Drop: Nepal’s mining-related revenue fell to Rs 894.8 million in FY 2025/26, down about Rs 700 million year-on-year. Fair Price Shops: FMTC began year-round fair price outlets—193 locations across 44 districts—with discounts for essential goods.

NEPSE Update: Nepal Stock Exchange jumped 8.81 points to close at 2,651.21 on Thursday; 10.25 million shares of 347 companies traded for Rs 1.54 billion, with Sarvottam Paints the top gainer (+15%) and Prabhu Bank Debenture 2086 the top loser (-12.54%). Smart Cell Case: Kathmandu District Court saw a case filed against NIMB CEO Jyoti Prakash Pandey and 21 others over alleged illegal auction of Smart Cell assets after telecom license revocation, with charges including fraud and banking-related offences. Ride-hailing Tension: inDrive riders suspended protests after a ministry meeting, but a minimum fare per kilometre still isn’t agreed, as Nepal’s ride-hailing sector lacks clear regulation. Parliament Discipline: The House of Representatives failed to proceed with the Mines and Minerals Bill due to quorum after lawmakers left, reigniting debate on accountability. Microfinance Deal: A 7-point agreement was reached between the government and microfinance victims’ committee, pausing Kathmandu protest plans. Business Partnerships: NCC signed a five-year MoU with Bagmati University to boost entrepreneurship, skills, internships and industry-linked research. EV Exports: Montra Electric launched Super Auto in Nepal and also shipped to Tanzania and West Africa, marking its first export push.

LPG Supply & Imports: Nepal Oil Corporation says LPG imports from India were boosted in Shrawan to ease shortages after consumers stockpiled amid rumours; it reports regular supply and improved availability in western districts. Parliament Oversight: A Finance Committee directive pushes the Civil Aviation Authority to expand and better manage international airport immigration and customs premises, and to maintain structures so users aren’t hit with extra costs. Financial Access: Finance Secretary Ghanashyam Upadhyay says financial access can’t be measured by bank branches alone; it should include insurance and share services while cutting the cost and paperwork burden of loans. Capital Market Rules: Nepal Securities Board sets a framework to stop arbitrary IPO premium pricing, using scientific valuation methods and sector-specific criteria to protect small investors. Telecom Governance: Ncell condemns the government’s move to publicise an investigation committee report on its share transaction, calling it a privacy violation and saying it will seek legal remedies. Business Expansion: Montra Electric begins exporting its Super Auto electric three-wheeler to Nepal and Tanzania, targeting broader West Africa expansion. Infrastructure Delays: Army-run strategic roads remain slow, with the Kathmandu–Terai/Madhesh Expressway “Fast Track” at about 48.72% physical progress after nine years. Politics & Legal Risk: Former PM Sher Bahadur Deuba returns to Nepal amid money-laundering probes and arrest warrants, drawing a large welcome from supporters. Gold & Silver: Gold prices fall by Rs 500 per tola; silver rises by Rs 5 per tola in the domestic market. Disaster Update: Landslide in Rolpa’s Thabang leaves three dead and nine missing as searches continue.

LPG Crisis: Lawmakers and the National Assembly pushed the government to end cooking gas shortages and make import, sales and distribution transparent, as queues and closures hit small hotels and restaurants in Surkhet. Digital Governance & Cybersecurity: Nepal Police is prioritizing tech-based investigations to curb online misinformation and fraud, amid rising cybercrime complaints. Telecom Transparency: The government published the 2023 probe report on Ncell share transactions, saying ownership transfers lacked transparency and recommending the latest deal not be approved as-is. Power Infrastructure: Madhes Province is accelerating strategic transmission lines and substations to meet rising demand, while Myagdi’s 132 kV Dandakhet–Rahughat line faces delays tied to forest approvals and site disputes. Capital Markets: NEPSE rose modestly, with trading value at Rs 1.53 billion and Mount Everest Power among top movers. Youth & Policy: President Paudel urged youths to ask “judicious questions” for stronger democracy, as COP-31 preparations focus on climate justice and mountain priorities. Health Services: Jajarkot’s 50-bed hospital is operating with only one specialist doctor, leaving most specialist posts vacant. Business & Tech: M Bank Technologies CEO discussed digitalization of cooperatives, while UTL is reportedly seeking license renewal to restart operations and launch 5G.

LPG Supply Transparency Push: Nepal’s Industry Minister Gauri Kumari says an online tracking system will be introduced for cooking gas supply, with details already being shared via Google Forms; lawmakers at the National Assembly also pressed for an end to “artificial” LPG shortages and demanded transparent import, sale and distribution. Fair Price Retail Expansion: FMTC will run fair price outlets at 193 locations across 44 districts, offering a NPR 5 per kg/litre discount on daily essentials, including rice, lentils, cooking oil, sugar and salt. Digital Payments & Telecom Business: Ncell launched Ncell Business Cloudsuite for domain registration and local web hosting, while the government decided to make the Ncell share-transaction investigation report public and implement its recommendations. Transport Fees Go Cashless: FNTTE and Sanima Bank signed an agreement to collect Nagdhunga–Sisnekhola tunnel entry/exit fees via RFID and QR payments. Energy & Infrastructure: Madhesh Province gets momentum on power reliability as new transmission lines and substations advance. Gold Moves: Gold prices in Nepal fell by Rs 1,200 per tola to Rs 3,06,700. Parliament & Oversight: NA meetings scheduled for bills including domestic air service liability and other committee discussions.

NAIMA Auto/Mobility Push: Nepal’s NAIMA Nepal Mobility Expo 2026 kicked off in Kathmandu with 50+ brands and new EV, petrol and hybrid models, while organizers say some launches were delayed by Tatopani customs issues. Textile Revival Watch: The Nepali Army has started trial production aimed at reviving the long-stalled Hetauda Textile Industry, with industry leaders questioning how a state-run model can compete in today’s market. Labour Rights Milestone: Nepal ratified two ILO instruments on forced labour and labour inspection, strengthening protections for workers and workplace compliance. Digital Government Strain: A report flags major failures in Nepal’s digital identity and connected public systems, leaving citizens unable to access services and departments disrupted. Tax & Telecom Accountability: Inland Revenue Department published winners of its taxpayer incentive gift program, while a Ncell share-transaction probe recommends investigating offshore-linked opaque deals. Regional Diplomacy: Commentary and updates point to Nepal’s “bridge” role as PM Balendra Shah engages India and China, with economic opportunities the real test. Market Pulse: NEPSE edged up slightly, closing higher on Tuesday.

Parliament & Justice: A 17-year-old girl’s eggs were allegedly harvested after being lured with Rs 30,000, with MPs raising the case in the House and pointing to arrests followed by bail and alleged intimidation of the victim’s side. Energy & Consumer Impact: LPG imports are reportedly up, but Nepalese consumers still queue as officials blame hoarding and distribution bottlenecks after the shift back to full 14.2kg cylinders. Transport & EV Policy: Transport entrepreneurs and industry leaders at NAIMA’s Naima Nepal Mobility Expo demanded stable EV policy for 10 years, customs concessions on EV parts, and charging stations at petrol pumps—while police flagged rising road accidents and urged safer mobility. Governance & Audit: The Auditor General says records destroyed in the Janji movement can be reconstructed using bank statements and electronic systems, while a separate Smart Cell case sees CIB recommend former telecom regulator Bhupendra Bhandari and 22 others as defendants. Agribusiness: Egg support prices were increased as demand rose after bird flu eased, but farmers say costs still aren’t covered. Markets: Gold prices climbed by Rs 6,400 per tola in Nepal.

Parliament & Governance: The House of Representatives unanimously passed a bill to protect existing provisions of Nepal’s Special Services Act, placing the National Investigation Bureau under the Prime Minister’s Office and broadening investigation roles beyond the Finance and Home ministries. Diplomacy: PM Balendra Shah held his first one-on-one meetings with India’s ambassador and China’s ambassador, focusing on development partnership and cooperation, while Israel also called for high-level Nepal visits to expand ties. Border Documentation: Foreign Minister Shishir Khanal told lawmakers Nepal cannot confirm whether it holds the original copies of the 1816 Sugauli Treaty and the 1950 treaty documents amid the Lipulekh-Limpiyadhura dispute. Telecom & Digital Economy: NTA released a draft “Road to 5G” roadmap aiming for faster mobile broadband targets, a 3G shutdown timeline, and future frequency auctions. Investment & Business Climate: Finance Minister Swarnim Wagle urged large multinational taxpayers to expand investment and jobs, promising a “response desk” to address investor concerns. Infrastructure & Costs: MPs flagged budget freezing over low capital expenditure and warned construction projects are stalling due to price hikes in bitumen and fuel, calling for faster payments and reforms. Social Campaigns: Lumbini launched a wellness tourism push, and Madhesh began a national campaign against dowry. Markets: NEPSE fell again, while gold prices moved in the local market. Legal/Finance: The Special Court released former Finance Minister Gyanendra Bahadur Karki on Rs 1.5 million bail in the Pokhara airport corruption case.

Nepal-India Diplomacy: Prime Minister Balendra Shah held his first one-on-one meeting with Indian Ambassador Naveen Srivastava, focusing on deepening “historic ties” and expanding development cooperation. Budget & Investment: Finance Minister Dr. Swarnim Wagle began talks with 20 large multinational taxpayers on budget implementation, investment expansion, job creation, and profit repatriation. Governance & Integrity: Parliament’s National Assembly committee directed the government to implement the National Integrity Policy and bring an Integrity Act in the current session, including integrity education in schools. Cooperatives Fallout: The “Problematic Cooperatives Management Committee” says it has returned money to nearly 4,000 depositors and is working to settle about 46 billion rupees owed to 76,000 depositors. Energy & Prices: LPG shortages are resurfacing despite steady imports, with officials pointing to distribution and stockpiling issues. Parliament Watch: Three bills were presented in the House, including amendments to the Employees’ Provident Fund and a Child Labor bill. Local Rights: Jhapa local levels pledged to enact and implement a Local Dalit Rights Act through a 10-point declaration. Trade & Finance Signals: ICRA Nepal published a five-year credit rating transition review of commercial banks, showing rating stability for some and declines for others. Tech & Digital Payments: India’s UPI operator plans to target the overseas diaspora for cross-border expansion. Business Consumer Notes: Gold prices in Nepal fell by Rs 200 per tola; Honor Earbuds X10 Lite launched at Rs 3,499. Aviation/Travel: Airtripmaker expanded San Francisco-to-India flight offerings for major cities. Sports/Industry: MPs raised concerns over delayed projects and the Hetauda textile industry’s repeated shutdowns.

LPG Market Watch: Nepal’s LP Gas Industry Association urged consumers not to hoard cylinders, saying imports from India are rising and supply should normalize; officials cite higher import volumes and ask retailers to prioritize household users. Gas Black-Marketing Crackdown: District administrations and police intensified monitoring in Dhankuta and Rasuwa after complaints of artificial shortages, with inspections focused on fair distribution. Capital Market Pressure: NEPSE failed to regain momentum since Prime Minister Balendra Shah took office, with the index slipping again and turnover staying low. ICT Priorities: PM adviser Rehan Asif Asad outlined Bangladesh-style ICT/telecom priorities—policy reform, better broadband, digital public infrastructure, AI-ready talent, and electronics manufacturing incentives. Parliament Bills: Four bills are set for Monday’s House of Representatives meeting, including amendments tied to employee savings and child labour. Trade & Diplomacy: Nepal’s PM is set for one-on-one meetings with India and China envoys, signaling a shift back to direct diplomacy. Oman Business Push: A Nepal trade delegation concluded a seven-day mission to Oman, meeting retailers and industrial partners to expand distribution of Nepali goods. Crime & Enforcement: Police arrested 16 people in separate drug cases across multiple districts, while a heroin trafficker was nabbed in Kathmandu after a high-security setup. Sports Funding: Nepal Ski Association approved an NPR 3.48 million budget for 2083/84, targeting national events, international participation, and Winter Olympics preparation.

LPG Crackdown: Nepal is deploying plainclothes police at Kathmandu Valley gas depots to curb black marketing and artificial shortages as supply improves. Border Trade Hit: Tatopani border trade with China has been halted for 19 days after landslides damaged the Kodari road section, squeezing customs revenue and imports/exports. Gold Watch: Gold prices in Nepal rose Rs 4,800 per tola to Rs 300,800; silver climbed Rs 65 to Rs 4,645. Hydropower Debate: A new analysis pushes back on common hydropower myths, arguing the sector’s real value starts during construction through domestic investment and capital market activity. Agriculture Exports: Salyan exported agricultural and livestock products worth Rs 2.24 billion in FY 2025/26, with vegetables, ginger and fruits leading. Policy & Growth: NPC Vice Chairman Dr. Gunakar Bhatta says Nepal must pursue policy intervention and investment expansion together to lift growth. Diplomacy Reset: PM Balendra Shah will hold separate one-on-one meetings with India and China envoys starting Aug 10, signaling a careful balance in foreign ties. Indigenous Peoples Day: President Paudel renewed calls for meaningful indigenous participation in policymaking, citing 36.8% local representation. Market & Business: NAIMA’s Mobility Expo returns with 55 brands; Nepal also moves to create a standalone legal framework for geographical indications to protect products like basmati.

Private Sector vs State Crackdown: Rastriya Swatantra Party chair Rabi Lamichhane urged Nepal’s business community to stay calm, saying business mistakes should be treated as economic offenses with penalties—not arbitrary arrests that keep entrepreneurs in fear. Trade Disruption: Landslides have kept the Tatopani border point closed for over three weeks, halting Nepal–China trade as cargo containers can’t reach the gateway. LPG Shortage Watch: Industry Minister Gauri Kumari Yadav inspected gas industries and depots in Kathmandu, directing priority sales for students and daily wage workers while Nepal Oil Corporation formed a quick response team to address complaints. Tax & Revenue: Jumla’s Inland Revenue Office collected Rs 480 million in FY 2082/83, with income tax and VAT performance tracked against targets. Construction Sector Trouble: CE Construction faced fresh allegations including non-payment of salaries for 15 months and tax evasion, with employees and homebuyers reportedly filing complaints. Cross-Border Finance: Kakarvitta customs data shows Nepal’s trade deficit widened 40.85% to Rs 36.38 billion in FY 2082/83 as imports outpaced exports. Entrepreneurship Push: 20 Nepali founders completed the US Embassy Capstone Accelerator in Kathmandu, pitching for investment readiness and export potential. Transport Safety Demand: Transport entrepreneurs urged stronger laws to protect drivers and assistants from assaults after accidents. Digital Crime: Police arrested three people in Kathmandu over illegal online betting and cryptocurrency transactions, including USDT-linked activity.

Industry Revival: PM Balendra Shah says reforms are reviving loss-making state firms, citing Nepal Aushadhi’s Rs 23.8m medicine sales in four months and progress at Hetauda Textile, Nepal Airlines, Dairy Development Corp and Singha Durbar Baidhyakhana. LPG Crunch: Industry Minister Gauri Kumari Yadav inspected Nepal Gas and Teku distribution amid complaints; officials say imports are fine but distribution issues and demand spikes are driving shortages, with steps like longer hours and a control room. Market Watch: NEPSE fell 35.45 points (1.32%) to 2,650.09, wiping about Rs 70bn in market value; most sub-indices ended lower. Trade & Gulf Push: Export Promotion Federation and Oman’s Non-Resident Nepali Social Club signed an MoU to expand “Made in Nepal” products in Oman, including tea, spices, handicrafts and garments. Diplomacy & Cost Cuts: Nepal begins steps to close five missions abroad (Brazil, Denmark, South Africa, San Francisco and Chengdu) while arranging alternative consular services. Connectivity: US officials continue talks to expand Starlink in Nepal, but policy and legal hurdles remain. Public Health Recognition: Nepal Netra Jyoti Sangh received a WHO South-East Asia “Public Health Champion” Award 2026 for reducing avoidable blindness. Entrepreneur Support: US Embassy-backed Capstone Accelerator concluded in Kathmandu, selecting 20 entrepreneurs for investment-readiness and AI/export-focused pitching. Sports/Business Culture: Nepal’s “Green Festival” campaign launched to cut plastic and food waste during celebrations.

Electricity Exports: Nepal Electricity Authority logged NRs 29.32bn from cross-border power sales to India and Bangladesh in FY 2025/26, up 67.96% year-on-year, while imports fell and net surplus widened. Capital Markets Reform: SEBON released a white paper to modernise Nepal’s primary capital market, targeting IPO allocation, pricing and stronger institutional participation. Telecom Quality Push: NTA issued 8 directives to telcos on improving mobile service quality, KPI compliance, spectrum use, cybersecurity and tariff reviews. Gas Supply Under Scrutiny: NHRC urged transparent LP gas distribution and stronger tracking to stop artificial shortages, as lawmakers also pressed for smoother supply. Stock Market: NEPSE inched down 0.15% to 2650.09 points. Governance & Delivery: MPs flagged weak inter-ministry coordination slowing development and electrification, while the government reported progress on its 100-point reform agenda. Tax Incentive Lottery: A Rs250 purchase in Kanchanpur won Rs1 million under the taxpayer incentive scheme. Foreign Policy: FM Shisir Khanal said economic diplomacy is central, positioning Nepal as a bridge between India and China. Local Revenue: Madhyapur Thimi trebled revenue collections, reaching Rs 525.06m in FY 2082/83.