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India has said it is aware of reports regarding enforcement by Nepali authorities of a pre-existing provision requiring customs duty on goods purchased in India valued above Rs 100 carried by cross-border travelers.

“We understand this measure is intended to curb informal trade and smuggling,” said Randhir Jaiswal, spokesperson of India’s Ministry of External Affairs.

He also noted statements from senior Nepali officials indicating that individuals carrying household goods for personal use will not be obstructed. India has further added that India is in talks with

Janata Samajbadi Party Nepal leader and National Assembly member Mahant Thakur has said that ordinary people are facing hardship at border crossings and that due to state indifference, they are “close to rebellion.”

Thakur complained in a meeting of the National Assembly’s Development, Economic Affairs and Good Governance Committee on Wednesday that people are being forced to pay tax even on goods worth more than Rs 100 and are being made to wait for hours, while treatment is based on appearance and includes humiliation.

“People are being made to wait for hours under the pretext of taxation even for goods worth more than Rs 100. They are being treated based on appearance and are being insulted,” he said.

“People are forced to cross the border for food items like rice, flour, salt, and cooking oil due to necessity in the Indian market. Even when bringing one or two kilos of such goods, there is fear of being looted or having items confiscated at the border.”

Thakur warned that if the situation continues, it could lead to rebellion. “We are not rebels, but if such state behavior continues, we are very close to rebellion,” Thakur said.

He also objected to what he called harsh treatment by the state in the Nepal–India “roti-beti”  relationship, saying wedding vehicles are being stopped and wedding processions are being forced to walk, which is damaging the cultural environment between the two countries.

Calling the current government a “helicopter government,” he said ministers based in the capital do not understand the suffering of people in the Madhes region.

The Inspector General of Police (IGP) of Nepal, Dan Bahadur Karki, has said that cybercrime incidents in the country are increasing at a rapid pace, with cyberbullying emerging as a growing concern alongside rising internet and mobile usage.

Karki said that enforcement has become challenging because major social media platforms are not registered in Nepal, making it difficult to obtain user data or remove harmful content. He noted that only a few platforms, including TikTok, Viber, Nimbuzz, WeChat, and Poco Live, are officially registered in Nepal. However, widely used services such as Facebook, Instagram, and WhatsApp—operated by Meta—remain unregistered, creating significant gaps in regulatory and investigative processes.

According to him, women and young people are the most affected groups in rising cybercrime cases. He informed that the police have received over 4,000 complaints involving fake accounts and hate speech, more than 3,000 cases of cyberbullying and harassment, and over 10,000 complaints related to financial crimes.

He also highlighted an increase in account hacking, online fraud, threats, sexual exploitation, and blackmail cases. “Cyberbullying incidents are increasing in our country. We have received more than 10,000 financial crime complaints, over 4,000 fake account-related cases, and more than 3,000 bullying and harassment cases,” Karki said during the committee briefing.

He further stated that cooperation from foreign-operated platforms remains limited, as Nepal lacks direct regulatory offices and strong legal mechanisms for swift data access.

“Obtaining user data from platforms like Facebook and Instagram can take 20 to 25 days. In simpler harassment cases, it may take about a week. However, in serious incidents such as missing minors or suicides, information is provided within 24 hours,” he added.

Karki also noted that platforms including WhatsApp, Discord, X (formerly Twitter), Snapchat, IMO, WeChat, Reddit, YouTube, and Gmail often do not respond to data requests or content takedown appeals.

Meanwhile, the Ministry of Information and Communication Technology has recently warned that individuals spreading misinformation and disinformation will face action under the Electronic Transactions Act, 2008.

Earlier, tensions had escalated after calls for registration compliance led to restrictions on multiple social media platforms, sparking widespread public backlash. The issue has since intensified debate around digital rights and online freedom, particularly among young people, with “digital freedom” emerging as a key demand from GenZ activists.

Nepal’s private sector, long constrained by decades of political instability, is once again voicing concern over an uncertain business environment despite initial optimism following the formation of a new government earlier this year.

For more than four decades, entrepreneurs and investors in Nepal have operated amid frequent government changes and shifting policy priorities. While successive administrations have consistently described the private sector as an “engine of growth,” business leaders say that, in practice, regulatory hurdles and inconsistent policies have often undermined that commitment.

That pattern appeared set to change after the emergence of the Rastriya Swatantra Party (RSP) as the largest political force in the March 5 election. The appointment of its senior leader, Balendra Shah, as prime minister on March 27, alongside noted economist Swarnim Wagle as finance minister, raised hopes of a more stable and business-friendly policy environment.

In the immediate aftermath of the election, private sector representatives expressed optimism that the new leadership would prioritize reforms to improve the ease of doing business, attract foreign investment, and strengthen domestic industries.

Business leaders have called on the government to introduce policies focused on investment security, tax reform, and infrastructure development. They have also emphasized the need to promote import substitution and boost export-oriented industries to reduce Nepal’s trade deficit.

However, that early optimism has begun to wane.

“Expectations were high that the new government would take decisive steps to support the private sector,” said a senior representative of a leading business association. “But so far, we have not seen meaningful progress.”

Concerns about the safety of businesses resurfaced following violent protests on Sept 8–9, during which several business establishments were selectively targeted. The incidents reignited fears among entrepreneurs about the security of their investments.

Business leaders say the previous administration, led by Sushila Karki, had been expected to address these issues but failed to deliver concrete solutions.

The current government, they argue, has yet to restore confidence.

Private sector representatives have also raised concerns over recent actions perceived as heavy-handed. These include the arrest of several business figures without what they describe as adequate preliminary investigation, as well as what they call “media trials” targeting specific entrepreneurs. Meanwhile, the Central Investigation Bureau (CIB) of Nepal Police has arrested businessperson Sekhar Golchha on Thursday.

“These developments have created an atmosphere of fear,” said another representative. “Due process and transparency are essential to maintain trust.”

Further unease has been triggered by reports that the government is considering amending existing laws to allow the Commission for the Investigation of Abuse of Authority (CIAA) to directly investigate corruption cases involving private sector actors.

Business groups argue that such a move would expand the mandate of the anti-corruption body beyond its traditional focus on public officials, potentially leading to regulatory overreach.

“There are already sufficient oversight mechanisms governing private sector conduct,” says a business leader.

As Nepal seeks to revive economic growth and attract international investors, analysts say that restoring confidence among domestic businesses will be critical.

Economists note that beyond rhetoric, the government will need to demonstrate consistency in policy implementation, ensure legal predictability, and maintain a clear distinction between regulatory oversight and undue interference.

For now, the private sector remains cautiously watchful—hopeful that the new leadership will translate its promises into concrete reforms, but increasingly concerned about signals that suggest otherwise.

The new Rastriya Swatantra Party (RSP) government, led by Balendra Shah, has initiated a series of legal reforms aimed at improving the country’s business environment. Although it is too early to assess their full impact, initial signs suggest the government is moving in the positive direction as early signs of renewed confidence among domestic and foreign investors are being observed.

Government officials say the reforms are aimed at making Nepal a more predictable and business-friendly destination. Measures taken include scrapping outdated laws, easing foreign investment procedures, and expanding the automatic approval route for selected sectors. Likewise, the government has also taken a tough stance against intermediaries accused of exploiting regulatory loopholes. Business leaders say this has helped restore trust in the system and encouraged genuine investors to step forward.

Investment pledges worth over Rs 30bn have been announced in just the past month. Many see this as an early vote of confidence in the new government. Among the most prominent announcements is a major hospitality project by the Chaudhary Group. The group, one of the largest business conglomerates in the country, has begun work on a luxury hotel in Thamel with an estimated investment of around Rs 15bn. The project will be managed by the globally renowned Ritz-Carlton under the umbrella of Marriott International. Led by billionaire industrialist Binod Chaudhary, the initiative is seen as a strategic move to position Kathmandu on the global luxury tourism map.

It, however, will be misleading to suggest that the project was conceived overnight following the formation of the new government. The promoters had been planning it for a long time but were reluctant to commit funds due to policy uncertainty and a lack of stability. The formation of a government with a strong majority instilled confidence in them by providing policy clarity and stability.

“The launch of The Ritz-Carlton in Kathmandu underscores Chaudhary Group’s commitment to elevating Nepal’s tourism sector to a world-class standard. It reflects our confidence in the new government under Prime Minister Balen Shah and our ambition to contribute to job creation, high-quality tourism, and broader economic growth,” Rahul Chaudhary of Chaudhary Group said at the ground-breaking ceremony. 

The project is being developed by CG Hospitality Global, the hospitality wing of Chaudhary Group, alongside a consortium of local investors: Rabindra Bhakta Shrestha of IJ Group, Saurav Sharma of Sharma & Company, and entrepreneurs Amrit Shakya and Sanchit Shrestha.

Industry people say the project goes beyond hospitality. They say it signals a shift toward high-value tourism as the property targets premium international visitors and increasing per capita spending.

Chaudhary Group has also begun work on the Summit Heritage Hotel project in Gorkha. With an investment of over Rs 5bn, the hotel is designed to cater to high-end travelers, with room rates expected to reach up to $500 per night.

Earlier this week, Danish brewing giant Carlsberg Group expressed its intent to invest around Rs 10bn in Nepal. Officials of the group met Minister for Finance Dr Swarnim Wagle last week and said they remain committed to Nepal.

Carlsberg Group holds a majority stake in Gorkha Brewery, the bottlers of Carlsberg products in Nepal. The group has reportedly acquired Raj Brewery from Jawalakhel Group and sold 15 percent of its stakes in Gorkha Brewery to Jawalakhel Group.

The government outlined its vision for economic development in the draft of the National Commitment document unveiled this week. It sets an ambitious target of transforming Nepal into a $100bn economy within the next five years. Central to this goal is improving the business environment. The government has pledged to eliminate rent-seeking, policy manipulation, cartel practices, and artificial shortages in the market. It also aims to promote innovation, entrepreneurship, and fair competition. 

Officials say these steps will help create a more dynamic private sector and attract long-term investment. The policy framework emphasizes a liberal economic approach while ensuring equitable distribution of national income. Investments in public services such as education, health, transport, housing, and social security are also part of the strategy, as per the National Commitment document.

The government has identified the private sector as the main driver of economic growth. Likewise, it plans to strengthen investor protection and ensure a predictable and risk-free investment climate, while also encouraging public-private partnerships, particularly in innovation and infrastructure development. It also aims to expand the productive sectors to support inclusive economic growth and generate employment.

As part of its effort to reduce bureaucratic hurdles, the government has unveiled plans to digitize all business-related processes—from company registration to renewal. A paperless system is expected to improve efficiency and reduce delays. Similarly, efforts are underway to gradually formalize the informal economy by improving access to information, services, and financial systems.

The government has said that foreign direct investment (FDI) will be linked more closely with production, technology transfer, and job creation, and that new investment-friendly laws are being prepared to build investor confidence.

Whether these measures translate into sustained investment and long-term growth remains to be seen. Similar reform drives were seen in the past as well. That said, early signals suggest a shift in mood this time. The government needs to build on this to convert initial optimism into lasting economic momentum.

The Rastriya Swatantra Party (RSP) has finalized its candidates for various parliamentary committee chairmanships following a parliamentary party meeting held at Singha Durbar on Thursday. In a significant move to organize its legislative presence, the party appointed Kabindra Burlakoti as the Chief Whip, with Prakash Chandra Pariyar and Kranti Shikha Dhital designated as Whips.

Additionally, Ganesh Parajuli has been appointed as the Deputy Leader of the parliamentary party. The meeting, endorsed by Party Chair Rabi Lamichhane and Parliamentary Party Leader Balen Shah, also established monthly levies for its officials: Rs 16,500 for lawmakers, Rs 18,000 for ministers, and Rs 2,000 for ministers’ personal secretaries.

Under this new lineup, Samiksha Baskota has been nominated for the Law, Justice, and Human Rights Committee, while Ashok Chaudhary will oversee Agriculture, Cooperatives, and Natural Resources. The party has selected Aashish Gajurel for Infrastructure Development, Aakriti Awasthi for Women and Social Affairs, and Hari Dhakal for State Affairs and Good Governance. Dr Ojaswi Sherchan is nominated for the Education, Health, and Information Technology Committee, while Krishnahari Budhathoki has been assigned to the Finance Committee. 

The party has named Sumnima Udas for International Affairs and Tourism and Rahabar Ansari for the Industry, Commerce, Labour, and Consumer Interest Committee. For the joint committees, Bodhnarayan Shrestha has been nominated for Parliamentary Hearing, and Ganesh Karki will lead the committee for Monitoring and Evaluation of the Implementation of State Directive Principles, Policies, and Obligations. Notably, the party maintains its stance of supporting the main opposition party for the chairmanship of the Public Accounts Committee.

Regarding the Public Accounts Committee, the RSP has decided to support the main opposition party, aligning with a broader political consensus. Bharat Bahadur Khadka of the Nepali Congress has officially filed his candidacy for the PAC chairmanship, proposed by Mohan Acharya and seconded by Janak Raj Giri.  With the RSP, CPN-UML, and Nepali Communist Party all signaling their support for the opposition in this specific role, Khadka’s election as chairperson is virtually certain. 

Popular moto-vlogger Suraksha KC and rider Ashutosh Dhanju have secured championship titles at the Extreme Moto Enduro Cross held in Bamdi, Pokhara. Organized by Adventure Sports Hub Nepal in coordination with Panchase Adarsha and Neel Gagan Youth Clubs, the two-day event concluded this Saturday on a grueling 4.8-kilometer technical track. 

Suraksha KC claimed the women’s title by completing five laps in 42 minutes and 55.1 seconds, earning a cash prize of Rs 100,000. She was followed by Sushmita Adhikari in second place and Umadevi Tamang in third, who received Rs 50,000 and Rs 25,000, respectively.

In the men’s division, Ashutosh Dhanju emerged victorious after completing seven laps with a time of 47 minutes and 3.1 seconds, taking home the top prize of Rs 150,000. The competition for the remaining podium spots was narrow, with Bibid Jung Thapa (MRB) finishing second in 49 minutes and 14.5 seconds to win Rs 100,000, and Rajesh Magar taking third place just seconds later at 49 minutes and 19.3 seconds to earn Rs 50,000. 

The event featured a total of 60 participants, including 53 men and seven women, highlighting the growing interest in endurance motorsports in the region.

Recent projections by the World Bank (WB) and second-quarter estimates from the National Statistics Office (NSO) suggest that Nepal’s economy is expanding at a moderate pace and under increasingly complex external and domestic conditions.

The World Bank has projected a slowdown in Nepal’s economic growth in fiscal year 2025/26 to 2.3 percent compared to the 4.6 percent expansion recorded in the previous fiscal year. This anticipated deceleration is due to a combination of external shocks and lingering internal disruptions. According to the World Bank, the ongoing conflict in West Asia has introduced volatility in global energy markets and disrupted travel flows, both of which are critical for Nepal’s tourism-dependent services sector. At the same time, the aftereffects of the Sept 2025 unrest continue to dampen investor sentiment and delay economic normalization.

However, the NSO’s second-quarter data tells a more nuanced story. The economy expanded by 4.05 percent year-on-year based on seasonally unadjusted data at basic prices, indicating that growth has not stalled. However, the quarter-on-quarter growth is projected to remain at just 2.04 percent based on seasonally adjusted prices. Projections by the World Bank and the NSO suggest that although Nepal’s growth is holding up statistically, momentum is weakening. 

Encouragingly, all 18 economic sectors recorded positive year-on-year growth in the second quarter, according to the NSO. This broad-based expansion suggests that the recovery is not narrowly concentrated but spread across the economy. 

Some sectors have performed exceptionally well. Electricity and gas activities recorded the highest growth at 22.74 percent, followed by financial and insurance activities (12.51 percent), transport and storage (9.65 percent), accommodation and food services (5.18 percent), and wholesale and retail trade (4.11 percent). Agriculture, the largest contributor to the economy, grew by an estimated 2.21 percent year-on-year despite a decline in paddy output. Increases in cash crops, vegetables, fruits, and forestry products supported overall agricultural value addition, according to NSO.

Similarly, wholesale and retail trade, the second-largest sector, expanded by 4.11 percent due to higher domestic production and imports of tradable goods. In contrast, sectors such as water supply, sewerage and waste management (0.55 percent), public administration and defense (1.11 percent), and education (1.16 percent) posted relatively weak growth.

Several sectors have shown signs of stagnation. Water supply and waste management, public administration, and education all recorded growth rates barely above one percent. This reflects structural inefficiencies in public service delivery and human capital development which are crucial for sustaining long-term growth.

The World Bank has warned that the services sector, particularly tourism, could face headwinds if the West Asia conflict persists. A prolonged crisis could reduce tourist arrivals, weaken remittance inflows from Nepali workers in the region, and ultimately dampen domestic consumption. Higher transport costs and supply chain disruptions could further erode competitiveness and raise inflationary pressures, it added.

However, there are also reasons for cautious optimism. The political landscape appears more stable following the March elections when Rastriya Swatantra Party (RSP) emerged as the largest political force in the country with nearly two-thirds majority. This alone can improve policy continuity and investor confidence. Since the country’s macroeconomic fundamentals are relatively sound, with adequate foreign exchange reserves and manageable inflation, these buffers can help the economy navigate external shocks if managed effectively.

More importantly, the medium-term outlook remains positive. The World Bank expects growth to pick up to an average of 4.4 percent over the next two fiscal years, driven by reconstruction activities, continued hydropower expansion, and consumption linked to the 2027 subnational elections. 

The World Bank has recommended improving the business environment, investing in foundational infrastructure, mobilizing private finance, and supporting high-potential sectors such as tourism, information technology, and agribusiness. Without these structural reforms, it says Nepal risks remaining trapped in a low-growth equilibrium.

Among its South Asian peers, Nepal’s projected growth outpaces only that of the Maldives. India is expected to grow at 7.6 percent in the current fiscal year, while growth in Bangladesh, Bhutan, Sri Lanka, Pakistan, and the Maldives is projected at 7.1 percent, 3.9 percent, 3.6 percent, 3.0 percent, and 0.7 percent, respectively.

The AG 10 Football Academy has officially commenced its 11-day football camp at the Chyasal Stadium in Lalitpur, starting last Monday. Organized by former national team captain and academy head Anil Gurung, the program features 35 participants between the ages of 6 and 16. 

The camp, which is scheduled to run until May 16, holds daily training sessions from 8:00 am to 10:00 am. According to the organizers, the initiative is designed to enhance technical skills, physical fitness, and tactical understanding while fostering discipline and teamwork in an engaging environment. 

To ensure high-quality instruction, the academy has enlisted a veteran coaching staff including former national women’s team coach Rajendra Tamang, national team goalkeeper coach Binod Dangol, and Anil Gurung, alongside coaches Samir Bista and Subit Karki.