AGP Executive Report

Everest Rescue: Dawa Sherpa, 57, was found near Everest base camp after nearly a week missing, surviving without food, water or oxygen and now being treated for frostbite. Tourism & Hotels: Marriott International and CG Corp Global signed an agreement to develop and operate three luxury hotels in Kathmandu and Siliguri, aiming to boost South Asia’s high-end tourism. Nepal–India Finance: Nabil Bank launched instant Nepal–India cross-border remittances via its nBank app, with daily and monthly transfer limits for faster P2P money movement. Startups & Funding: Nepal’s subsidised startup loan scheme has disbursed about Rs 1.88 billion to nearly 1,500 entrepreneurs over three years, but founders say most startups still fail quickly and delays remain a problem. Digital Payments & Innovation: The second IN-SPAN cohort began in India with 25 Nepali startups selected for an eight-week, fully-funded deep-tech and innovation programme. Energy & Inflation Debate (India): India hiked domestic LPG by ₹29 per cylinder amid global price pressure, while the government says Indian households still pay among the world’s lowest rates after subsidy. Health System Pressure: A report highlights Nepal’s doctor shortage and low health budget share, arguing rural areas face the worst access gaps. Youth & Jobs: Coverage also points to youth frustration and unemployment pressures shaping political protests and public anger across the region. Climate & Risk: Nepal’s changing Himalayan disaster patterns are linked to climate change, with more dangerous glacier-related outburst risks emerging beyond classic lake bursts. Himalayan Climate Action: BLACKYAK hosted the Himalayan Climate Charter 2026 Namche Summit to push solidarity and practical climate action for mountain ecosystems.

Nepal–India Digital Finance: Nepal and India launched direct cross-border cash transfers by linking India’s UPI with Nepal’s National Payments Interface, enabling bank-to-bank remittances and easing payments for Nepalis in India. Border Diplomacy: Foreign Minister Shishir Khanal reiterated Nepal will resolve India border disputes bilaterally, not via third-party mediation, while clarifying the UK mention was only for access to historical archives. Language AI & Digital Public Infrastructure: India’s Digital India Bhashini and Kathmandu University signed an MoU to co-create a “Voice First” multilingual language translation platform for Nepal. EV Readiness: Nepal’s MoID report says the country needs at least 10,000 charging stations by 2030 to hit its EV target. Hospitality Investment: Marriott and CG Hospitality will develop two ultra-luxury hotels in Kathmandu (Ritz-Carlton and Westin), targeting openings by 2031. Household Energy Politics: India defended a domestic LPG price hike of Rs 29 per cylinder, arguing Indian cooking gas remains among the world’s cheapest despite global shocks. Elder Care Gap: A study in Upper Mustang found rising loneliness and healthcare gaps among seniors, urging stronger community-based elderly care.

Nepal-India Diplomacy: Foreign Minister Shishir Khanal told reporters in New Delhi that Nepal is ready to resolve the border row through diplomacy and an “open-heart” approach, stressing a “calm, data-driven” path focused on Nepal’s economic transformation. Cross-Border Payments & Digital Cooperation: Khanal and India’s EAM S Jaishankar launched UPI–NPI peer-to-peer links for cross-border remittances and witnessed an MoU between Digital India BHASHINI and Kathmandu University to build a voice-first multilingual language translation platform. LPG Cost Shielding (India, with regional impact): India raised domestic LPG by Rs 29 to Rs 942 per 14.2-kg cylinder, but the government says supply cost is over Rs 1,600 and under-recovery (~Rs 700) is absorbed via subsidies—keeping Indian household prices among the lowest globally, including versus Nepal. Urban Transport Push: Infrastructure expert Surya Acharya renewed calls for a high-capacity Metro Rail in Kathmandu Valley, arguing road conditions and density make it unavoidable for long-term growth. Public Health & Food Safety: Health Minister Nisha Mehta marked World Food Safety Day, saying Nepal will strengthen food hygiene enforcement, testing labs, and risk-based market monitoring to cut foodborne disease burdens. Energy Utility Recovery: NEA revived an administrative review committee to assess long-running dedicated feeder and trunk line electricity dues owed by industrialists. Business/Finance Watch: Nepal Rastra Bank set Sunday forex rates with USD selling at Rs 152.22.

India-Nepal Diplomacy: Nepal FM Shisir Khanal met EAM S. Jaishankar in New Delhi, with both sides reviewing bilateral ties and pushing a “decisive shift” toward deeper cooperation; talks also covered trade, investment, connectivity, energy and people-to-people links. Cross-Border Payments: India virtually handed over 72 health facilities and 12 cultural heritage projects under the 2015 earthquake reconstruction programme, while launching UPI–NPI linkage to ease cross-border remittances. Regional Cooperation: PM Balendra Shah marked BIMSTEC’s 29th anniversary, calling it a dynamic platform and urging better transport, trade and digital connectivity plus youth and tourism opportunities. Nepse Watch: Nepal Stock Exchange slipped 0.96% last week to 2,755.41 as post-budget momentum faded; market cap fell about Rs 45 billion and turnover cooled. Gold & Precious Metals: Gold jumped Rs 18,400 per tola to Rs 309,000 after customs duty changes and Middle East tensions; silver rose Rs 190 to Rs 5,230. Social Security Fund: SSF collected Rs 111.07 billion and plans bigger investments in hydropower, transmission and solar/renewables. Everest Survival (Business/Travel Angle): A Sherpa guide presumed dead was found alive after six days on Everest, surviving without food or oxygen—another reminder of the risks behind Nepal’s high-value mountaineering economy. Uber Enters Nepal: Uber debuted in Nepal with Uber Go/Comfort and Uber Bike, citing 2,000+ driver sign-ups and tourism-driven demand. Internal Governance: RSP advanced district leadership elections in 38 districts as part of its restructuring ahead of a national convention.

Climate & Environment: Agriculture Minister Gita Chaudhary urged “nature-friendly development” on World Environment Day, saying Nepal must pair prosperity with climate-resilient infrastructure and wider access to climate finance. Road Safety Reform: Nepal’s long-stalled Road Safety Act and National Road Safety Action Plan has been stuck for eight years, with the process reset after Parliament dissolution. Health & Medicines: Health Minister Nisha Mehta ordered tighter monitoring to fix medicine shortages, speed approvals, and strengthen quality testing for free and health-insurance medicines. Public Health: TB deaths remain high—53 per 100,000—while the government plans to expand TB-free campaign coverage to 256 local levels next fiscal year. Politics & Accountability: An inquiry panel cleared former Home Minister Sudan Gurung of corruption allegations, paving the way for a possible return. Transport & Trade Infrastructure: Speaker Aryal and NA Chair Dahal inspected a proposed dry port site in Kanchanpur, alongside talks on upgrading Mahendranagar Airport. Urban Mobility & Business: Uber officially launched in Nepal with Uber Go/Comfort and Uber Bike, partnering with Taximandu and eyeing expansion beyond ride-hailing. Agri-Prices: Nepal Layers Poultry Farmers Association raised egg farm-gate support prices, pushing retail prices to around Rs 25 per egg. Nepal-India Diplomacy: Foreign Minister Shisir Khanal met India’s NSA Ajit Doval as part of talks covering trade, connectivity and bilateral cooperation.

EV Probe: Nepal forms a joint committee to investigate the seizure of 779 electric vehicles over suspected revenue evasion, with rapid on-site checks underway by Finance, Customs, Nepal Police and APF. Markets: NEPSE fell 11.37 points to 2,755.41 on Friday; 351 companies traded Rs 1.57 billion. Aviation & Trade Links: Himalaya Airlines launched direct Kathmandu–Shenzhen–Kathmandu scheduled flights, creating a new air corridor to China’s tech and finance hub. Digital Economy: Uber officially launches in Nepal after trials, joining Pathao, InDrive and Yango in the ride-hailing race. Cyber & Consumer Risk: FIFA World Cup “free streaming” scams are draining money from Nepalis via fake apps and phishing links. Diplomacy: Foreign Minister Shisir Khanal begins a three-day official visit to India to discuss trade, investment, connectivity and energy. Climate & Resilience: World Environment Day events highlight nature-friendly development and community resilience as Nepal pushes for climate finance and preparedness. Tourism & Services: Setopati’s Nepal Fintech Conclave 2026 kicks off in Kathmandu, while spa industry groups push standards to support wellness tourism. Energy Projects: Government clarifies Budhigandaki hydropower will move as a multi-purpose model with irrigation, water, fisheries and ecotourism. Sports: SAFF Women’s Championship summit clash looms as India take on Bangladesh aiming for a record sixth title. Everest Update: Everest Sherpa Dawa Sherpa, presumed dead, is found alive and recovering, but his family demands a probe into rescue delays.

Climate & Nature Policy: Environment Minister Gita Chaudhary said Nepal must pursue “climate and nature-friendly development,” pushing climate-resilient infrastructure and faster access to climate finance as the country faces worsening floods, droughts and glacier melt. Nepal–India Diplomacy: Foreign Minister Shishir Khanal has departed for New Delhi for talks with EAM S. Jaishankar on trade, investment, connectivity and energy cooperation, as Nepal’s border issues stay in focus. Hydropower Reform Push: The government announced policy reforms to restructure the Electricity Authority and open PPA and electricity trading to the private sector, but private producers warn about unclear “take or pay” and PPA rules. Power Sector Targets: Ippan’s Ganesh Karki said the 30,000 MW goal is impossible without private participation and urged faster PPA processing. Election System Overhaul: The Election Commission has proposed constitutional changes to restructure itself, including reducing commissioners and setting election dates by the commission. Education Accountability: Nepal recovered Rs 104.6 million from TU professors over study leave misuse, with more recoveries still underway. Uber Enters Nepal: Uber launched official services with Uber Go/Comfort and Uber Bike, betting on Nepal’s digital mobility and tourism growth. Everest Survival Story: Sherpa guide Dawa Sherpa was found alive after six days missing, crawling back to base camp and now receiving treatment.

RPP Split: Nepal’s royalist Rastriya Prajatantra Party formally split as senior leader Dhawal Shumsher Rana quit and said a new monarchist-nationalist force will be formed, reshaping the royalist camp. Everest Survival: A Sherpa guide, Hillary Dawa Sherpa, was found alive on Mount Everest after six days missing, crawling down near the Khumbu Icefall and flown to HAMS Hospital with frostbite treatment. NEA Hydropower Deal: The Nepal Electricity Authority reconstituted committees to negotiate Khimti Hydropower Project share transfer and settle disputes on tariffs, fines and management issues. EV Tax Debate: Finance Minister Swarnim Wagle said EV prices under Rs 5 million have fallen after the government shifted passenger EV taxes to a price-based system, drawing public criticism. Smart License Printing: Smart driving licenses are nearing completion; about 1.57 million cards have been printed, with remaining work expected in 2–3 weeks. Nepse Slide: NEPSE fell 13.46 points to close at 2,766.78 as turnover dropped to about Rs 4.70 billion. Nepal-India Diplomacy: Foreign Minister Shisir Khanal will visit India June 5–7 for talks with Jaishankar on trade, investment, connectivity and energy, amid renewed border-related political tension. Tourism Boost: Indian tourist arrivals in May hit a record via air, with 40,782 visitors, lifting optimism for hotels and travel businesses. Nagdhunga Tunnel Funding: Japan signed an additional JPY 5.7 billion loan for the Nagdhunga Tunnel, with the project nearing completion and expected to open to the public in July 2026.

Everest Rescue: A Sherpa guide, Dawa Sherpa, was found alive crawling near the Khumbu Icefall and rushed to Kathmandu for treatment after being missing since May 29, highlighting both the risks of the season and the growing role of organized rescue and cleanup teams. Everest Record Season: Nepalese officials say more than 1,000 climbers reached Everest’s summit this May, the busiest season on record, with verification still pending and reports of deaths and a missing guide. Cross-Border Trade: Nepal raised the duty-free customs exemption for land-route travelers from Rs 100 to Rs 500, aiming to ease pressure on low-income border households while keeping rules for commercial imports. Parliament Rules & Accountability: The House of Representatives passed new rules of procedure that expand the Speaker’s role in constitutional amendments and set tighter timelines for impeachment motions, while critics warn some provisions may shield lawmakers. Constitutional Appointments Stalled: The Constitutional Council remains inactive despite an ordinance easing quorum, leaving key posts vacant and commissions operating under acting leadership. Infrastructure Finance: Japan approved an additional JPY 5.7 billion (about Rs 5.5 billion) loan for the Nagdhunga Tunnel, with the project nearing completion and expected to open to the public from July 2026. Capital Markets: NEPSE inched up 2.66 points to close at 2,780.25, with insurance stocks leading gains and turnover rising. Digital Payments Abroad: India and Cambodia launched UPI QR interoperability, letting Indian travelers pay at millions of KHQR-enabled merchants in Cambodia. Vehicle Registration: Bagmati Province resumed public vehicle registration after a brief suspension, easing pressure on transport businesses and buyers.

Markets & Finance: NEPSE inched up 2.66 points to close at 2,780.25 as daily turnover rose to Rs 5.73 billion; insurance stocks led gains while “others” dragged. Digital Payments Oversight: NRB tightened rules for digital payment investors and PSPs, requiring detailed disclosures when stakes or capital gains cross set thresholds. Budget Debate: The Finance Bill was revised multiple times within days, drawing scrutiny over procedure and transparency; stakeholders also questioned whether the FY 2026/27 budget’s priorities and delivery add up. Private Sector Signals: FNCSI said the budget boosted private-sector confidence, while CNI welcomed industrial and customs reforms—urging effective implementation. Energy & Transport: JICA signed an additional JPY 5.7bn loan for the Nagdhunga Tunnel; meanwhile, critics say the budget lacks a clear roadmap for public electric buses due to idle charging infrastructure. Health Supply Shock: Acute shortages of platinum-based chemotherapy drugs like carboplatin are disrupting cancer treatment nationwide. Nepal-India Diplomacy: National Assembly lawmakers pushed for resolving border issues through diplomatic channels, as Parliament proceedings were adjourned amid protests over PM Balen’s remarks. Cross-border Payments: NPCI International and ACLEDA Bank launched UPI QR acceptance in Cambodia, with plans to expand the corridor.

Monetary Policy Watch: Nepal Rastra Bank says its Standing Deposit Facility (SDF) is working to curb excess liquidity and stabilize the interest-rate corridor floor, after criticism over liquidity management. Budget Debate: Finance Minister Swarnim Wagle defended the FY 2026/27 budget size at Rs 2.124 trillion (about 28.5% of GDP), while experts question the revenue assumptions and fiscal math. Foreign Aid & Infrastructure: Japan (via JICA) added a JPY 5.7 billion loan to the Nagdhunga Tunnel project, now ~99% complete and targeted for public opening in July 2026. Energy Pipeline: The 216 MW UT-1 hydropower project moved into the final pre-generation stage after installing the first of three weir gates, aiming to boost power supply for Kathmandu and beyond. Capital Markets & Startups: NIMB Ace Capital and Momo VC signed an MoU to launch a Nepal-focused USD 30m PE/VC investment fund. Tourism Growth: Nepal welcomed 102,626 foreign visitors in May, up 19% year-on-year, with India the biggest source market. Nepal-India Connectivity: Himalaya Airlines plans direct Kathmandu–Shenzhen flights from June 4, strengthening business and tourism links. Governance & Compliance: Property Inquiry Commission says it has received 1,000+ daily property declarations and opened complaints from senior officials.

Budget & Finance: Nepal’s FY 2026/27 budget (NPR 2.124 trillion) targets 7% growth, with major tax changes including a higher personal income tax exemption threshold and a simplified customs structure, while critics warn the math and debt burden remain tough. Electricity VAT: Finance Minister Swarnim Wagle says the electricity VAT decision won’t be reversed, keeping pressure on households and the power sector. Capital Markets: NEPSE jumped 22.21 points to close at 2,777.58 on Tuesday; turnover was Rs 1.58 billion with hydropower and finance stocks leading moves. Parliament & Governance: The House of Representatives meeting was postponed to Monday amid opposition protests over PM Balendra Shah’s border remarks; the National Assembly also adjourned without completing its agenda. Land Administration: The government formed a new Land Problem Resolution Committee after dissolving the previous land commission, aiming to tackle landless and squatters’ issues. Nepal–India Border Row: India rejected any third-party role in the boundary dispute after Shah suggested UK involvement; India says 98% of the boundary is already demarcated. Nepal–China Cooperation: Nepal and China agreed to expedite cooperation projects through the mechanism for implementation facilitation. Tourism & Trade: Indian arrivals hit a record 40,782 by air in May; meanwhile, Himalaya Airlines announced direct Kathmandu–Shenzhen flights starting June 4 to boost tourism and trade. Everest Economy & Safety: A viral video reignited debate over waste at Everest’s Camp IV, while a Nepali guide reportedly went missing during the spring descent. Corporate/Business: Zee Entertainment secured FIFA broadcast rights for the 2026 World Cup and more, ending uncertainty for India’s sports viewers.

Budget & Business Climate: Finance Minister Swarnim Wagle says Nepal’s FY 2026/27 budget is built on a five-year horizon to lay a long-term foundation, with revenue targets and a push to mobilize domestic resources. Private sector groups welcomed the “right direction” but want more complete measures to improve investment, production and jobs. Public Finance Priorities: The government has cut funding for “national pride” infrastructure, including a zero allocation for railway/metro plans, while also earmarking higher pay for civil servants. Tax & Cost Pressures: A new “green tax” on smartphones and smartwatches is set to raise prices further, adding to already rising electronics costs. Energy & Infrastructure: A 400 kV West Seti transmission line is moving ahead under a PPP model, while the power sector faces subsidy pressure due to higher purchase and import costs. Governance & Accountability: Nepal’s planning leadership urged an end to rent-seeking in the private sector; meanwhile, parliament sessions have been disrupted by controversies, and the PM responded to MPs on governance issues. SME & Agriculture Support: FNCCI highlights SME promotion as key for an economic revolution, and the budget unveils incentives to boost agricultural productivity, including grants for commercial farmers. Aviation & Trade Link: Himalaya Airlines will start direct Kathmandu–Shenzhen flights from June 4, aiming to boost tourism and trade. Digital Economy: India’s UPI hit record May numbers, a reminder of the region’s fast-moving payments shift. Legal/Corporate Watch: A court ordered release of a detained banking CEO, while separate reports flag alleged e-passport procurement variations defrauding the state.

US-Nepal Digital Push: US Under Secretary Sarah B. Rogers wrapped up a Nepal visit, stressing stronger Nepal-US partnership on trade, investment, tourism and especially digital infrastructure, telecom and cyber security. Aviation & Trade Connectivity: Himalaya Airlines announced direct Kathmandu–Shenzhen flights from June 4, aiming to boost business travel and inbound tourism via China’s tech hub. Budget Shockwaves: NEPSE fell 26.72 points after Budget 2026/27, while the budget itself targets 7% growth and Rs 1,600bn revenue collection; business groups say it could lift private-sector morale, but critics warn it underplays climate and social inclusion. Electricity VAT Debate: Finance Minister Swarnim Wagle said VAT on electricity use above 50 units won’t be reversed, with tariff adjustments being discussed to protect consumers. Power Buildout Plan: Government plans an extra 1,040 MW next FY and completion of multiple transmission lines, with Rs 85.54bn earmarked for generation, transmission and distribution. Capital Market & Cooperatives Stress: Over 6,000 depositors in Kathmandu Metropolitan City have sought withdrawals from cooperatives, and investors are watching capital market reforms and tax changes. Geopolitics & Borders: PM Balendra Shah’s “encroachment” remarks on India sparked controversy, while Nepal also seeks wider diplomatic involvement in the Lipulekh-Kalapani-Limpiyadhura dispute. Tourism Headwinds: Reports link Iran-war-driven price pressures to weaker tourism demand across Asia, raising costs for airlines and travelers.

Budget Watch: Nepal’s House of Representatives begins budget deliberations today as Finance Minister Swarnim Wagle defends a Rs 2.12 trillion plan, saying it’s not too big for the economy; business groups like the Nepal Chamber of Commerce welcome parts of the tax and customs reforms, while critics warn the package leans on middle-class relief and may hit lower-income households through higher living costs. Electricity VAT Debate: PM Balendra Shah says VAT revenue on electricity use above 50 units will fund grid and distribution upgrades, but lawmakers and stakeholders argue it discourages electrification and contradicts green-energy goals. Gold & Import Costs: Gold prices in Nepal jumped by Rs 20,500 per tola after customs duty on gold was doubled to 20% in the budget. Digital Trade & Border Friction: Nepal’s online customs system for vehicles entering from India is causing delays and pushing some users to pay intermediaries. Energy-Led Growth: Hydropower and energy infrastructure are framed as the core of economic transformation, with plans to add 1,040 MW next year. Tech Industry Move: CAN Federation and the Nepal Mobile Distributors Association form a strategic alliance to tackle grey-market imports and policy ambiguity. Tourism Pressure Regionally: Rising jet fuel costs linked to the Iran war are threatening Asia’s peak summer travel demand, a risk for Nepal too. UPI Signal for Payments: India’s UPI hit record May volumes and value, reinforcing the momentum of instant payments across the region.

VAT Lottery Push: Finance Minister Swarnim Wagle says every VAT bill will automatically become a lottery ticket, with migrant remittances included, aiming to boost invoice demand and cut tax evasion. Budget Execution Focus: Wagle also defended the new Rs 2.12 trillion budget as “not ambitious,” citing steps to improve spending efficiency and capital expenditure. Electricity VAT Debate: PM Balendra Shah says 5% VAT on electricity use above 50 units is meant to fund grid upgrades, while lawmakers questioned the move. Gold Jumps: Gold prices surged by Rs 20,500 per tola after the budget doubled customs duty on gold to 20%. Capital Market Reform: The budget makes capital gains tax on listed securities a final tax for individuals, while also proposing changes to ease NRN participation and NEPSE modernization—sparking mixed reactions. Water Crisis in Tarai: National Assembly lawmakers raised worsening drinking water shortages in the Tarai and urged faster action. Border Talks With UK: PM Shah reiterated that Lipulekh/Limpiyadhura/Kalapani disputes will be handled through diplomacy, including talks with India, China, and the UK, after controversial “encroachment” remarks. Tourism & Innovation Link: US Under Secretary Sarah B. Rogers highlighted innovation and adventure tourism ties at Ascent Summit 2026 in Kathmandu. Sports Funding Gap: Nepal’s budget allocates Rs 4.03 billion for sports but reportedly omits clear preparation funds for the upcoming Asian Games.