‘Ek Mutthi Badal’ hits theaters May 15

In a celebratory announcement on International Women’s Day, Gauthali Entertainment has confirmed that the highly anticipated Nepali feature film ‘Ek Mutthi Badal: My Share of Sky’ will arrive in domestic theaters on May 15. Presented by Mana Production and distributed by RR Films, the movie is poised to be a landmark release in the region's cinematic calendar.

Directed and written by Sahara Sharma, the film is an intimate family drama that unfolds over the course of a single day. It explores the complex emotional landscape of three generations living under one roof, navigating the friction between personal aspirations and societal expectations. Sharma, who previously made history as the youngest female director to open the Kathmandu International Mountain Film Festival with Chasing Rainbows, continues to break barriers as the first Nepali woman to receive the prestigious Hubert Bals Fund + Europe Post-Production Grant.

The production boasts a significant international pedigree, marked by a Nepal-Germany co-production partnership. Produced by Abhimanyu Dixit alongside German producer Sara Fazilat of Third Culture Kids, the project has been refined through elite global platforms including the Cannes Film Festival’s Marche du Film, the Locarno Open Doors Consultancy, and the NFDC Film Bazaar. This global outlook is reflected in the technical crew, featuring Vietnamese cinematographer Linh Dan Nguyen Phan, Indian editor Deepa Bhatia (Taare Zameen Par), and production designer Yashasvi Sabharwal, whose previous work contributed to a Grand Prix win at Cannes.

The cast features a blend of contemporary stardom and veteran prestige. Leading actress Aanchal Sharma takes on the central role of Maili, starring alongside newcomer Sahayog Adhikari. The film also marks a momentous return for veteran actor Nisha Sharma, who returns to the silver screen after a thirty-year hiatus to play the family matriarch. They are joined by Usha Rajak, Manish Niraula, Sekhar Chapagain, Asmita Gautam, and Gourab Bista, completing a generational ensemble that promises to deliver a poignant look at the modern Nepali household.

Minister Shrestha represents Nepal at UN CSW session

The 70th session of the United Nations Commission on the Status of Women (CSW) is being held in New York City from March 9 to 19. Nepal was represented at the session by Minister for Women, Children and Senior Citizens Shradha Shrestha, who led the country’s participation in various high-level meetings and discussions.

Minister Shrestha attended the session along with a Nepali delegation that included Secretary Radhika Aryal and Joint-secretary Abha Shrestha from the Ministry of Women, Children and Senior Citizens.

On the first day of the session, March 9, Minister Shrestha participated in two high-level events. At a program on strengthening legal systems to end child marriage, organized by Just Rights for Children and the Office of the First Lady of Sierra Leone, she presented Nepal’s views and ongoing efforts to eliminate child marriage.

Speaking at the event, Minister Shrestha said child marriage is a serious violation of children’s fundamental rights and stressed the need for stronger legal frameworks and multisectoral interventions. She also reiterated Nepal’s commitment to eliminating child marriage by 2030 and called for global attention toward declaring an international day dedicated to ending child marriage.

The minister also addressed a high-level evening reception organized to mark the 45th anniversary of the Committee on the Elimination of Discrimination against Women (CEDAW), with participation from UN Women, the UN Foundation and member states.

On March 10, Minister Shrestha took part in four important events. During a parallel event organized by Beyond Beijing Committee Nepal, Asia Pacific Women’s Watch, dZi Foundation and Asian-Pacific Resource and Research Centre for Women (ARROW), discussions focused on strengthening legal pathways for sexual and reproductive health rights and justice. The minister shared Nepal’s perspectives and interacted with organizations working in this field.

She also participated in a high-level side event organized under the UNFPA-UNICEF Global Programme to End Child Marriage, where she highlighted Nepal’s efforts to end child marriage. These include strengthening legal and policy frameworks, expanding access to justice, improving birth and marriage registration systems, promoting girls’ education and raising community awareness.

Minister Shrestha further participated in the ministerial roundtable and general discussion sessions under the CSW priority theme of ensuring and strengthening access to justice for women and girls through inclusive and equitable legal systems and by addressing discriminatory laws, policies and structural barriers. During the discussions, she presented Nepal’s national statement highlighting progress, challenges and ongoing efforts related to gender equality, justice and women’s empowerment.

On March 11, Minister Shrestha represented Nepal in three high-level side events. At a closed ministerial roundtable hosted by the government of Sierra Leone on advancing the nexus between sexual and reproductive health rights and gender equality, she shared Nepal’s efforts and experiences in promoting sexual and reproductive health rights and gender equality.

She also stressed the importance of strengthening multilateral cooperation and integrating gender equality and sexual and reproductive health rights into broader agendas such as climate action, peacebuilding and development.

In another discussion titled “The Race for Financing: What is and isn’t working for Adolescent Girls,” the minister highlighted Nepal’s efforts to invest in adolescent girls while acknowledging existing challenges. She noted plans to strengthen data systems, expand digital monitoring and enhance partnerships with the private sector, and called on the international community and development partners to increase long-term, multi-year investments in Nepal.

Minister Shrestha also spoke at a high-level side event related to the Convention on the Elimination of All Forms of Discrimination Against Women, where she highlighted Nepal’s constitutional provisions ensuring equality and inclusive representation, including reservation policies in the civil service and the growing participation of women in diplomacy and peace processes. She also shared Nepal’s efforts to implement recommendations from the CEDAW Committee through a national roadmap aimed at eliminating discriminatory laws and structural barriers.

On March 12, the minister also participated in a high-level meeting under the ministerial segment focusing on violence against women and girls, where she shared Nepal’s efforts and progress in addressing gender-based violence.

During her visit, Minister Shrestha also met members of the Nepali diaspora in New York and held discussions on Nepal’s current political situation, social development, future prospects and the role of the Nepali community abroad in national development.

Economic challenges abound as RSP prepares to assume power

The Rastriya Swatantra Party (RSP) has done more than just sweep the old guard from power in the House of Representatives elections held last week. With a clear majority in the 275-member lower house, it has become the largest political force in the county and a beacon of hope for millions of people. 

However, as the celebrations fade, the new government, the new finance minister to be precise, faces a sobering reality: the task of translating populist fervor into a functional, resilient economy.

The economy the new government inherits is a study in contradictions. On one hand, the macroeconomic indicators are deceptively stable. The recent central central bank data show inflation at decades-low levels, and foreign exchange reserves have bolstered to nearly Rs 3,200bn by mid-Dec 2025—more than half of the country’s gross domestic product (GDP). However, this stability is a mere thin veil over structural decay. The new finance minister’s desk will be piled with reports of subdued domestic demand, slow credit disbursements, rising non-performing loan (NPL) levels in the banking sector, and waning investor confidence. 

Although the International Monetary Fund (IMF) has projected a real GDP growth of 5.2 percent for the upcoming fiscal year, the real situation of the economy tells a story of empty villages, industries running at below capacity, agricultural land remaining fallow, and a youth population migrating abroad in record numbers. The new minister inherits a nation where remittance is the primary life-support system, accounting for nearly 24 percent of the GDP, while the domestic manufacturing and industrial sectors continue to shrink.

The RSP, in its election manifesto, has promised a transformation that sounds almost mythical in the Nepali context. The plan envisions building a $100bn economy by more than doubling the country’s GDP within the next five years. It also aims to raise per capita income to $3,000, up from the current estimate of around $1,650. In addition, it has vowed to create 1.2m jobs to reduce forced labor migration.

To achieve this, the party has banked on ‘development diplomacy’, a strategy aimed at courting investment from India, China, and the Western world without falling into geopolitical debt traps. 

Addressing voters after his victory in Chitwan last week, RSP President Rabi Lamichhane said his party would align development priorities, foreign policy objectives, and private sector interests. “We will take relations to new heights by cooperating in development. Our policies will be to protect and safeguard the private sector,” Lamichhane said. “RSP will continuously work to create an environment for domestic investment and to ensure investment security.”

Likewise, in his reply to Indian Prime Minister Narendra Modi’s congratulatory message on social media platform X, Lamichhane said the RSP and its government will remain dedicated to fostering a relationship built on mutual respect and shared prosperity where the party will prioritize development diplomacy. 

Perhaps the most immediate and symbolic challenge lies in the party’s stance on the duties on automobile imports. RSP Vice-chair Swarnim Wagle, who is expected to lead the finance ministry in the new government, earlier told the media that the new government would review the exorbitant duties of as much as 300 percent on motor vehicle imports.

This represents a familiar two-sided challenge for a finance minister. On one hand, lowering these duties would lower the cost of living, stimulate the transport sector, and please the urban middle class that fueled the party’s electoral victory. On the other hand, motor vehicle taxes have been one of the primary sources of revenue for the government. Reducing them necessitates a radical broadening of the tax base elsewhere—something previous governments have failed to do. 

The intensifying conflict in West Asia has already prompted the government to suspend labor approvals for 12 countries. If the Gulf crisis spirals further, it would not only choke the flow of remittances but saddle the new government with the herculean task of rescuing and repatriating over 1.7m workers. Managing this massive influx of returnees within a stagnant domestic job market will be a challenge of unprecedented proportions for the new administration. 

The prospects, however, are genuine. For the first time in decades, Nepal has a government with a clear mandate and a younger, more technocratic leadership. If the RSP can simplify the business environment and leverage its development diplomacy to attract high-quality FDI, the target of achieving seven percent annual growth is not impossible.

However, the challenges are equally real. The new government will have no representation in the National Assembly which remains dominated by the opposition. Any radical fiscal legislation will not pass through the upper house. Moreover, the youth that voted for the RSP expects immediate results. If the promised 1.2m jobs do not materialize quickly, the same ‘blue wave’ that brought them to power could turn into a tide of disillusionment.

The new finance minister will not just inherit a fiscal budget to implement, s/he will be inheriting the hopes of a generation that has finally dared to believe in a ‘New Nepal’. It remains to be seen whether the bell can ring in actual prosperity.

Government starts preparation for new budget

The government has started preparation for the budget for the upcoming fiscal year 2026/27 that begins in mid-July.

The Revenue Advisory Committee, formed by the Ministry of Finance to collect recommendations on revenue policy, tax structure, customs rates, revenue administration and broader macroeconomic reforms, on Monday  called on stakeholders to provide comprehensive suggestions on tax rates and revenue policies for the next budget.

According to a finance ministry, the committee will collect suggestions from different stakeholders, compile them, analyze them and submit its recommendation to the ministry by mid-May.

The government is constitutionally bound to present a budget for the next fiscal year on May 28.

The committee, chaired by Revenue Secretary Bhupal Baral, has sought suggestions from government agencies, private-sector umbrella organizations, academia and the general public. Stakeholders can submit their recommendations through the Ministry of Finance, the Ministry of Industry, Commerce and Supplies, the Inland Revenue Department, the Department of Customs, the Revenue Investigation Department, and the Department of Money Laundering Investigation, and their subsidiary offices, among others.

The committee has been mandated to recommend policy and legal reforms related to income tax, value-added tax (VAT), excise duty, the education service fee, digital service tax, taxes on e-commerce, and other internal taxes governed by the Finance Act. It has also been tasked with reviewing tax rates, simplifying procedures, broadening the tax base, improving the overall tax system, and proposing reforms in revenue administration and organizational structure.

Beyond internal taxation, the committee’s scope includes industrial promotion and protection, import and export policy, trade in services, investment promotion, supply management, and tax and non-tax incentives. It will also review customs rates and measures to protect domestic production, improve valuation systems, facilitate trade, strengthen border management, and reform customs administration.

Controlling revenue leakage and curbing smuggling are the other key focus areas of the committee. The committee will study trends in illicit trade, foreign exchange regulation, financial crimes, and asset laundering and recommend legal and institutional reforms where necessary. Revenue and policy reforms in agriculture, energy, tourism, civil aviation, and natural resource management have also been incorporated into its assessment.

The panel will also study issues in banking and financial institutions, insurance, remittance flows, capital markets, cooperatives and real estate transactions, particularly in relation to revenue mobilization and regulatory gaps. It has been authorized to identify new non-tax revenue sources, review and rationalize rates, address tax duplication among federal, provincial and local governments, and suggest improvements in intergovernmental revenue management and revenue sharing.

To make its sectoral analysis more effective, the committee has formed nine thematic subcommittees—Internal Revenue; Revenue Leakage and Investigation; Customs; Industry, Commerce, Investment and Export Promotion; Agriculture, Energy and Tourism; Bank, Financial Institutions, Insurance Cooperative and Capital Market, Non-Tax and Inter-Government Revenue Management; Overall Economic; and Asset Laundering Prevention and Investigation. 

Members of the committee include an Executive Director from Nepal Rastra Bank, a joint secretary from the Ministry of Industry, Commerce and Supplies, and two experts—an economist and a tax specialist—nominated by the Finance Ministry. 

Similarly, academia is represented by the chief or a designated senior professor from the Central Department of Economics at Tribhuvan University, while private-sector participation includes the presidents or designated senior officials of the Federation of Nepalese Chambers of Commerce and Industry, the Nepal Economic Association, the Confederation of Nepalese Industries, the Nepal Chamber of Commerce, the Federation of Nepalese Industries and Commerce, and the Federation of Nepal Cottage and Small Industries. A joint secretary from the ministry’s Revenue Management Division is the member secretary of the committee

NRB eases working capital rules, expands priority lending

Nepal Rastra Bank (NRB) has announced a series of measures aimed at reviving sluggish credit growth and easing pressure on businesses amid excess liquidity in the banking system in the mid-term review of the Monetary Policy for fiscal year 2025/26.

The central bank has relaxed provisions related to working capital loans and expanded the scope of priority sector lending. However, it has kept key monetary instruments unchanged, including the interest rate corridor, the bank rate, the cash reserve ratio (CRR), and the statutory liquidity ratio (SLR).

Banks and financial institutions (BFIs) will now be allowed to determine the tenure and limit of permanent working capital loans based on their own analysis of a borrower’s cash flow and financial statements. Currently, banks can extend permanent working capital loans for 3-10 years. Once the change comes into effect, banks will have greater flexibility to assess borrowers and fix appropriate limits accordingly.

The central bank has also eased a controversial provision requiring borrowers to reduce their working capital loan outstanding by at least 10 percent for at least seven consecutive days each year. This threshold will now be revised to 30 percent.

The private sector had long complained that the 10 percent rule was creating operational difficulties, particularly for businesses with continuous working capital needs. NRB said the provision will be amended to provide relief while maintaining financial discipline.

NRB has also broadened the definition of priority sectors. In addition to agriculture, energy, and micro, cottage, and small enterprises, the revised framework will now include tourism, IT, and export-oriented industries based on domestic raw materials. The central bank said the existing requirement for BFIs to maintain minimum lending ratios in each specified sector will also be revised.

At present, commercial banks must allocate 15 percent each of their total loans to agriculture and micro, cottage, and small enterprises, and 10 percent to energy. Development banks are required to extend at least 20 percent of their loans to agriculture, small enterprises, energy, and tourism, while finance companies must maintain a minimum of 15 percent in these sectors.

To help manage excess liquidity, NRB has increased the limit on non-deliverable forward (NDF) investments in foreign currency. Banks may now invest up to 30 percent of their core capital in NDF instruments, up from the existing 25 percent. The ceiling had previously been lowered to as little as 15 percent during periods of liquidity stress.

The decision to raise the NDF limit would allow banks to deploy surplus funds abroad amid a liquidity surplus situation. Additionally, loans extended to businesses displaced by the expansion of the East-West Highway and the Mid-Hill Highway can be restructured or rescheduled at a minimum interest rate of 10 percent until mid-July 2026.

The central bank has also pledged to facilitate foreign investment in physical infrastructure, such as data centers, cloud computing, robotic labs, and artificial intelligence (AI) facilities. It said banks and financial institutions will be encouraged to participate in co-financing such projects.

NRB has also said it will adopt a strategy of promoting electronic payments by gradually reducing check-based transactions. The review also calls for the effective implementation of provisions that prevent borrowers facing genuine situational difficulties from being blacklisted immediately. Borrowers already on the blacklist may be removed for up to six months if they present valid reasons and begin repaying their dues.

March 5 elections: A test of transparency and integrity

With less than two weeks remaining before the House of Representatives election scheduled for March 5, Election Commission Nepal has unveiled a sweeping 64-point directive aimed at tightening campaign discipline, curbing financial irregularities, and preventing the resurgence of election-related malpractices.

The detailed code comes amid growing concerns over rising campaign expenditures, the expanding influence of social media, and recurring allegations of voter inducement and misuse of state resources in past elections. By introducing stricter enforcement mechanisms and clearer prohibitions, the Commission appears determined to project institutional authority and reinforce electoral credibility.

Nepal’s previous electoral cycles have often been marred by accusations of vote buying, use of public vehicles and state machinery for partisan purposes, and inflammatory rhetoric targeting marginalized communities. While the country has largely avoided large-scale electoral violence in recent years, sporadic incidents of intimidation, financial inducement, and character attacks have persisted.

The new directive signals the Commission’s effort to close regulatory gaps — particularly in campaign financing and digital campaigning — while reinforcing the spirit of the Election Code of Conduct, 2082 and prevailing federal election laws.

Campaign activities—including rallies, assemblies, door-to-door outreach, and media promotions—are permitted only between Falgun 4 and Falgun 18 (February 16-March 2, 2026). A mandatory 48-hour silence period before polling will prohibit all forms of campaign activity, including social media posts and online messaging.

The emphasis on digital silence reflects a recognition of the increasing role of online platforms in shaping voter perceptions. By extending restrictions to social media sharing and reposting, the Commission is attempting to prevent last-minute misinformation or targeted messaging.

A central feature of the directive is its stringent financial oversight. Candidates must route all election-related expenses through banks or financial institutions. Contributions exceeding NPR 25,000 must be deposited into a separate bank account, and detailed expenditure reports must be submitted within 35 days of the election results.

The Commission has also prohibited financial assistance from government bodies, NGOs, educational institutions, and public entities in violation of federal law. These measures are widely interpreted as an effort to curb opaque funding channels and reduce the influence of money in politics.

Election analysts note that effective enforcement will be key. While reporting requirements have existed in previous elections, critics argue that monitoring mechanisms have historically lacked teeth. The Commission’s public warning of strict action suggests a more assertive approach this time.

In a notable shift, the directive severely restricts visual campaign materials. Only a single-color leaflet of limited size is permitted. Posters, banners, digital displays, flex boards, wall paintings, and even digital advertising boards are banned. Sound systems may only be used during approved assemblies between 7:00 am and 7:00 pm.

The prohibition of plastic and non-biodegradable materials marks an environmental dimension to the code, aligning electoral conduct with broader sustainability concerns. Parties are required to collect and manage campaign materials responsibly after events.

Additionally, the use of children in campaign activities has been explicitly barred, reinforcing child protection standards.

The directive introduces strict vehicle regulations. Candidates may use only up to two light vehicles in their constituency, subject to prior approval from the Election Officer. Vehicles cannot be used to transport voters, and motorized rallies are prohibited.

These measures target a common election-time practice of mobilizing voters through organized transport, which critics argue can distort voter autonomy and create unequal advantages for wealthier candidates.

To protect ballot integrity, the Commission has reiterated prohibitions against tampering with ballot papers and boxes, producing fake ballots, unauthorized entry into polling or counting centers, and carrying weapons near polling stations.

Access to polling and counting venues will be strictly limited to authorized personnel, voters, and approved representatives. Disturbances within 300 meters of polling centers are banned.

The directive explicitly bars campaigning that promotes hatred based on religion, caste, ethnicity, language, gender, or region. It also prohibits rhetoric undermining Nepal’s sovereignty, territorial integrity, or federal democratic republican system.

This provision reflects heightened sensitivity to divisive narratives in a politically fragmented landscape. By including protections for senior citizens, women, sexual and gender minorities, and persons with disabilities, the Commission signals an intent to safeguard inclusive democratic participation.

The Commission has encouraged citizens and political actors to report violations to Election Officers, Chief Election Officers, local administration, or directly to the Commission. This participatory monitoring model aims to expand oversight beyond institutional mechanisms. 

The breadth of the 64-point directive underscores the Commission’s attempt to assert regulatory control in a competitive and often polarized political environment. However, the true test will lie in enforcement.

In its concluding appeal, the Commission has urged all parties and candidates to fully comply with the directive and contribute to an election that is free, fair, transparent, credible, and fear-free.

As political parties prepare to intensify their outreach within the limited campaign window, observers say adherence to the code will determine not only the credibility of the March 5 vote but also public trust in Nepal’s evolving democratic institutions. 

Revenue shortfall, slow spending leads to budget

Halfway through fiscal year 2025/26, the government has been compelled to confront an uncomfortable reality: ambitious plans announced at the beginning of the year are no longer financially or administratively feasible. 

The mid-term review of the fiscal budget reflects a series of downward revisions on spending, growth projections, and revenue targets. This highlights the persistent structural weaknesses of Nepal’s public finance management.

Budget size trimmed by Rs 275bn

The finance ministry has trimmed the budget for the current fiscal year by 14.04 percent. Then Finance Minister Bishnu Prasad Paudel had brought a budget of Rs 1,964.11bn in mid-May last year. However, with revenue shortfalls and sluggish expenditure performance, the government has now slashed the allocation by Rs 275.78bn, bringing the revised budget size down to Rs 1,688.32bn.

The reduction is a tacit admission that the government overestimated both its ability to mobilize resources and its capacity to spend effectively. Despite the cut, Minister for Finance Rameshore Prasad Khanal insisted that the budget has not technically been reduced. “The budget remains Rs 1,964bn. If any government body can spend that amount, the originally estimated resources will be made available,” he argued. 

He, however, pointed to the Rs 130bn deficit in the government treasury as the reason for tighter controls.

Chronic problem of slow capital spending

One of the most worrying indicators in the mid-term review is the dismal performance of capital expenditure. As of Feb 10, only 14.98 percent of the capital budget had been spent. This is an alarmingly low figure for a country desperate for infrastructure development.

The government had originally allocated Rs 407.88bn for development projects. This allocation has now been reduced by 40.35 percent to Rs 243.30bn by suspending funding for projects deemed unprepared or unproductive.

The mid-term review has identified lack of project preparedness, difficulties in land acquisition, complications related to forest clearance, and damage caused to infrastructure during the GenZ protests of Sept 8 and 9 as the reasons behind slow capital expenditure.

The cabinet had frozen most of the Rs 119.53bn allocated to projects lacking adequate groundwork, the Cabinet has frozen most of the funds. However, Rs 42.28bn has been released following justification from concerned ministries.

Growth target slashed to 3.5 percent

The government had set an ambitious six percent economic growth target for the current fiscal year.. The mid-term review has now revised that estimate sharply downward to 3.5 percent.

The downgrade reflects weak performance in agriculture and construction, sluggish real estate transactions, and disruptions caused by social unrest. According to the review report, a decline in paddy production, reduced cultivated area, and lower productivity have dragged down the agricultural sector, while construction activity has remained subdued.

Even the revised 3.5 percent target remains more optimistic than external projections. The World Bank has forecast Nepal’s growth at just 2.1 percent for this fiscal year, citing political uncertainty and economic disruptions. Economic growth in the previous fiscal year has been estimated at 4.6 percent.

Slow spending by development ministries

The very ministries entrusted with driving development have performed the worst over the first half of the current fiscal year. 

According to the mid-term review report, the Ministry of Urban Development has utilized only 6.31 percent of Rs 91.35bn allocated to it. The Ministry of Physical Infrastructure and Transport fared comparatively better, spending 18.12 percent of the total allocation of Rs 153bn.  The Ministry of Energy, Water Resources and Irrigation also managed to spend only 16.56 percent of the allocated Rs 42.77bn.

In contrast, non-development ministries have fared better. The Ministry of Foreign Affairs has already spent 55.8 percent of its budget, while the Ministry of Finance itself has spent 35.54 percent.

Revenue collection falls short

Revenue mobilization has also been weaker than expected. By mid-January, only 81.75 percent of the targeted revenue had been collected. The government could mobilize only Rs 581.4bn out of the targeted Rs 711.20bn in the six-month period. Although revenue is 2.47 percent higher than last year, it remains far below the required level.

Import growth of 17.36 percent has not translated into proportional customs revenue, which rose by only 8.48 percent. The finance ministry has attributed this to increased imports of low-tax goods, ineffective border control, and weak market monitoring.

Lower interest rates have reduced income tax collections, while sluggish real estate and stock market activity has hit capital gains tax. The tourism sector has also underperformed, partly due to the September unrest. Citing these reasons, the government has revised down revenue target from Rs 1,480bn to Rs 1,298bn.

Prem Kumar Rai: Maintaining good governance and controlling corruption require collective effort

Over the past five years, the Commission for the Investigation of Abuse of Authority (CIAA), under the leadership of Prem Kumar Rai, has sought to make the commission more proactive in controlling corruption and promoting good governance. Under Rai’s leadership, the CIAA has taken strong action against irregularities and corruption in public land, information technology, healthcare, and aviation sectors. In a special interview with Balkrishna Basnet and Surendra Kafle of Annapurna Post, the sister publication of The Annapurna Express, Rai, who rarely speaks to the media, shared his views.

You have completed five years leading the CIAA. Which areas did you focus on during this period?

There is widespread embezzlement and misuse of government and public land across the country. In many places, such land has been registered in individuals’ names. From the outset, I said my first priority would be to bring such land back under government ownership.

Second, at the policy level, I focused on reforming the Prevention of Corruption Act and the CIAA Act. These laws had become outdated and required amendments. At that time, sting operations had also been halted. From the beginning of my tenure, I made it clear that policy reform would be a key priority.

Third, public perception of the CIAA had become increasingly negative. I committed to restoring the institution’s credibility. These were the three main priorities I pledged to pursue.

When I first studied the condition of the CIAA, I found that digitalization had not been implemented. Immediately after assuming office, I prioritized digitalizing the entire system—from complaint registration to detailed investigation processes. This has made it easier to assess governance status and identify urgent actions.

What kinds of land-related cases emerged? What trends did you observe?

We are extremely weak in maintaining land records. Proper digitization has not been completed. It was found that even responsible agencies, such as District Administration Offices, local governments, and the Ministry of Land, had failed to adequately protect government and public land.

After the Land Act of 1964, a decision was made to bring land exceeding the legal ceiling—held by Rana elites, Shah rulers, and wealthy landlords—under government ownership. The CIAA has repeatedly written to the Ministry of Land Management to implement this decision. However, even after decades, excess land has not been reclaimed. This is a major institutional weakness.

Even after 50 years, such land continues to be misused. This reflects a failure on the part of the Government of Nepal. In Kathmandu Valley alone, one individual still holds more than 4,000 ropanis of land. There are many similar cases.

It is said that the information technology sector is even more chaotic. Is that true?

Yes, the IT sector was deeply problematic. Serious irregularities were found in the purchase, installation, and operation of software and related systems. After we assumed office, the CIAA began investigating this sector in depth for the first time. Previously, there was limited understanding of IT within the institution. Complaints were filed, but even investigators struggled to fully grasp technical aspects.

Because IT is complex and constantly evolving, officials often accepted suppliers’ claims without sufficient scrutiny. Procurement in the IT sector proved highly risky. Determining the actual value of software was difficult. Prices could be arbitrarily inflated, specifications manipulated, and verifying compliance required additional IT expertise.

A small group monopolized the sector. Since only a limited number of experts understood the systems, they exploited this knowledge gap. In projects such as the Teramocs system, Security Press, Government Integrated Data Center (GIDC), and telecom billing systems, prices were massively inflated. For example, equipment worth Rs 10m was sometimes priced at Rs 250m to accommodate commissions.

Besides land and IT, which other sectors showed irregularities?

Healthcare was another major sector. Procurement of medical equipment had long gone unchecked. Investigations revealed monopolies by a few agents. Once we filed some cases, complaints began to increase significantly.

In one instance, we spent three months in Madhesh Province, visiting municipalities and rural municipalities. We discovered collusion in drafting technical specifications tailored to specific companies. In some cases, specifications were written for one product, but cheaper alternatives were supplied instead. This was a common method of corruption. Like IT procurement, medical equipment procurement also involved serious irregularities.

It is also said that excessive equipment is purchased but left unused. What did you find?

Yes, this is another serious distortion. Both IT and medical equipment were often purchased beyond actual needs and left unused. By the time they were utilized, they had already become outdated.

There are many examples of equipment being purchased merely to exhaust budgets. In some cases, staff lacked the skills to operate the machines. In Madhes Province and other areas, equipment supplied by provincial authorities and the Department of Health Services was simply stored without use.

In places lacking manpower and infrastructure, unnecessary equipment was procured, creating opportunities for corruption. For example, while villages required basic blood-testing facilities, equipment capable of conducting 20 different tests was supplied unnecessarily. During the Covid-19 period, large quantities of equipment were purchased and later left unused, turning health facilities into storage warehouses.

How is the CIAA dealing with the alleged irregularities in the aviation sector?

We have only recently begun investigating airport construction. There appears to be misuse of budgets in this sector, with greater emphasis on spending allocated funds than on assessing actual needs.

Airports are being built larger than necessary, with excessive and unjustified expenses. For instance, Nepalgunj Airport, which was constructed at a cost of Rs 4bn, reportedly includes a shopping center, which may not be viable. Similar concerns have been observed at Bharatpur and Biratnagar airports. We are studying these issues and preparing further cases. We have already examined the case pertaining to Pokhara International Airport. The Public Accounts Committee also reviewed it and shared its report with us, which supported our investigation. A case has already been filed.

As for Bhairahawa International Airport, which was built with a loan from the Asian Development Bank, it is struggling even to repay interest. Despite this, additional infrastructure such as taxiways is still being constructed, and there are also discussions about building Terminal-2. Such activities are cause for concern.

Airports should only be constructed after thorough feasibility studies, as well as assessment of flight demand, potential returns, public benefit, and air route agreements. The same principle applies to proposed projects such as Nijgadh International Airport.

What kinds of threats do you face as chief commissioner?

In this position, I have simply fulfilled my constitutional responsibility. The commissioners and I act strictly within the authority granted by the Constitution. We do not act with bias or favoritism. Decisions are based on investigative findings.
Naturally, once cases are filed, not everyone will be pleased. In such roles, there are often more adversaries than allies. While direct threats are rare, indirect pressures do occur. Some individuals distance themselves after cases are filed.

How easy has it been to maintain good governance and control corruption?

Many people speak about corruption, but when asked to submit formal written complaints, they hesitate. Maintaining good governance and controlling corruption is challenging and requires collective effort.

There is a misconception that corruption control is solely the CIAA’s responsibility. Many complaints fall outside our jurisdiction, such as assault, fraud, marital disputes, and inheritance conflicts. Each year, around 37,000 complaints are registered, and most do not concern corruption. The CIAA handles only corruption cases. Recently, we have also been granted authority over money laundering cases, and three such cases have been filed.

The CIAA is not the only body responsible for controlling corruption. It is essentially the final resort and primarily a prosecutorial body. Nepal has federal, provincial, and local governments, and their responsibility is to prevent corruption at their respective levels. If they properly enforce laws and maintain accountability, the CIAA’s role would be minimal. The belief that the CIAA alone can control corruption is misguided.

There are widespread claims of corruption at provincial and local levels, aren’t there?

Yes, approximately 50 percent of corruption occurs at the local level. Development projects are sometimes effectively “sold” at provincial and local levels. There is widespread misuse of consumer committees in local governments. Unnecessary staff recruitment and excessive procurement have increased recurrent expenditure. There is a prevailing mindset that “anything can be done.”

Despite the CIAA’s efforts, this tendency has not fundamentally changed. The core issue is that our society appears to have normalized corruption. Our presence creates some deterrence, but without the CIAA’s interventions, Nepal might already have faced international blacklisting. Unless society becomes more aware and proactive, controlling corruption will remain difficult. No one should assume they can escape accountability.

Why is there dissatisfaction toward the CIAA?

Intermediaries or middlemen often play a role in attacks against the CIAA. When such actors influence state operations, they also attempt to influence the commission. Past controversies have also affected the institution’s image.

The CIAA must continue to demonstrate impartiality and independence. There is a tendency among some individuals to seek protection for themselves while demanding strict action against others. Such attitudes undermine good governance and make corruption control more difficult.