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International tourist arrivals (overnight stays) increased by 4 percent, according to the World Tourism Barometer, as tourist activity increased in most destinations around the world. There were about 1.52bn international tourist arrivals worldwide in 2025. This is about 60m more than in 2024. Until Covid, the average growth rate of international tourist arrivals was 5 percent.

The United Nations Tourism Organization (UN Tourism) has noted that tourist arrivals have increased despite high inflation and geopolitical tensions. “The continued revival of destinations in the Asia-Pacific region, the good performance of major source markets, expansion of air connectivity, visa facilitation, etc. have contributed to the increase in international tourist arrivals,” says UN Tourism’s analysis.

UN Tourism Secretary-General Sheikha Al-Nuwais said that this growth in tourist arrivals is expected to continue in 2026, as the global economy recovers and destinations that were not yet at pre-pandemic levels are expected to recover. If the Asia-Pacific region continues to recover and geopolitical tensions do not escalate, tourist arrivals are expected to grow by about 4 percent in 2026. The 2026 Milan-Cortina Winter Olympics in Italy and the 2026 FIFA World Cup in Canada, the United States and Mexico are also expected to contribute to further international travel.

In addition to the overall increase in tourist arrivals, regionally, there has been an increase in tourist arrivals. Asia and the Pacific welcomed 331m tourists in 2025, an increase of 6 percent. However, this is still 9 percent less than in 2019. North-East Asia saw a 13 percent increase, while South Asia regained pre-pandemic levels.

Africa welcomed 8.1m international tourist arrivals in 2025, an 8 percent increase from the previous year. North Africa saw a significant 11 percent increase. The Middle East region grew by 3 percent in 2025, reaching 39 percent above pre-pandemic levels. The region is expected to welcome nearly 100m international tourist arrivals. According to the World Tourism Barometer, Europe, the world’s largest destination, welcomed 793m international tourist arrivals in 2025, up 4 percent from 2024 and 6 percent from 2019. Western Europe (5 percent) and Southern Mediterranean Europe (3 percent) performed well. Central and Eastern Europe, with a 6 percent increase, was still 9 percent below 2019. The Americas region welcomed 218m tourist arrivals in 2025, up 1 percent.

According to preliminary estimates, international tourism revenue has reached US$ 1.9trn, which is 5 percent more than in 2024. Including passenger transport, total tourism export revenue is estimated to reach US$ 2.2trn.

Nepal’s tourism promotion in Thailand, a major tourism source market in Southeast Asia, is becoming stronger. The Nepal Tourism Board (NTB) has effectively presented the diversity and potential of Nepali tourism by successfully participating in the 31st Thai International Travel Fair (TITF) 2026 held in Bangkok.

The board, in collaboration with Nepal Airlines and 11 reputable travel and trekking companies of Nepal, promoted tourism through the ‘Nepal Pavilion’ at the four-day tourism fair organized at the Queen Sirikit National Convention Center from 22 to 25 Jan 2026. The participating companies provided first-hand information on adventure, cultural, spiritual and nature-based tourism products.

Daily direct flights between Thailand and Nepal and more than 20 weekly flights have facilitated tourism exchanges between the two countries. The board says that this air access has played an important role in increasing interest in Nepal’s tourism in the Thai market. During the fair, Lumbini, the Himalayan region, heritage cities, trekking routes, adventure and spiritual travel products attracted Thai tourists. The board said that the fair provided an opportunity to inspire potential travelers to visit Nepal through direct dialogue with tourism professionals.

Along with tourism promotion, TITF 2026 also became an effective platform for business-to-business (B2B) networking. The participating Nepali companies met with representatives of the Thai travel trade, tour operators and media to establish new business relationships and discuss the possibilities of future collaboration. The board believes that Nepal’s presence at TITF 2026 has further strengthened Nepal’s tourism image in the Thai market, strengthened partnerships for long-term tourism growth, and played a role in taking Nepal’s destination identity in Southeast Asia to new heights

Nearly 11 years after the contract was first awarded, the expansion of the Bagmati Bridge at Tinkune–Suvidhanagar remains stalled. The project, initiated in 2014, saw early work halted after the Road Department found that the basement and pillars under construction did not meet design standards and used substandard materials.

Two incomplete pillars still stand as reminders of the abandoned effort. Although a new contract was issued on 26 July 2022, the project has since been stuck in the bridge design–approval process. The bridge was originally expected to be completed by February 2025, but construction has yet to begin.

A similar bridge expansion contract was also awarded in 2014 for the Kathmandu Bijuli Bazaar bridge, which was completed and brought into operation about three years ago. The government has prioritized bridge expansion in Kathmandu after rising traffic congestion made it clear that road widening alone was insufficient.

Senior Divisional Engineer Ashika Pokharel, head of the Kathmandu Ring Road Expansion Project, said construction could not start due to delays in approving the design submitted by the contractor. The design did not initially meet Road Department standards, she said, but has now been approved.

“There has been a delay because the design was not submitted as per the specified standards. Now the design has been approved, and preparations are underway to enter the construction phase,” she said.

The new bridge will follow an arch-style design similar to Bijuli Bazaar.

The project’s first major setback came when Pappu Construction, which received the contract on 20 Dec 2018 for around Rs 210m under the design-build method, began work and built three abutments, two of which were later found to be substandard. The department stopped the work, blacklisted Pappu in 2019, and restarted procurement.

YP Kiranteshwor JV was awarded a new contract on 29 July 2022 to build the 85-meter bridge expansion at a cost of Rs 240m, with a 42-month completion timeline. Originally overseen by the Kathmandu Valley Road Expansion Project in 2014, the project is now under the Kathmandu Ring Road Expansion Project. Three years after the new contract was issued, the bridge design has finally been approved, and Project Chief Pokharel said the contractor has been instructed to mobilize.

Since the project was supposed to be completed within this Magh, the contractor has already sought an extension. “If the delay is our fault, the time will be extended. If it is their fault, we will recover compensation,” said Pokharel. She added that approval processes have also moved forward because nearby branch roads must be closed and fenced before construction can begin.

After three years of waiting, YP Kiranteshwor JV is finally preparing to move to the site. Birbal Rai, a representative of Kiranteshwor Construction, said the company could not begin work earlier due to delays in design approval. He added that the first step will be demolishing the faulty structures built by the previous contractor.

“If the old structures can be demolished without local obstructions, we will start construction soon,” he said.

Due to floods and landslides triggered by incessant rains since the night of Oct 3, movement along highways and roads has been difficult. Tourists visiting Nepal have been stranded in several parts of the country. However, as rainfall has now subsided, life is gradually returning to normal, and tourists are also able to reach their destinations, said Deepak Raj Joshi, Chief Executive Officer of the Nepal Tourism Board (NTB).

According to the NTB, most tourists currently in Nepal are trekking in regions such as Manaslu, Annapurna, Sagarmatha, and Langtang, while others are in Pokhara, Chitwan, and Kathmandu. CEO Joshi said there are currently around 21,000 tourists in Nepal, and all are safe. Since the beginning of October, around 3,500 tourists have been arriving daily—similar to last year’s figure. Although the board had expected daily arrivals to exceed 4,000 this season, the prolonged monsoon and reduced travel by GenZ tourists have had some impact.

“The situation for tourists in Nepal is now stable,” Joshi said. “Some tourists were stranded when road and air transport were disrupted due to the October 3 rains, but everyone is now in contact and safe. Road transport has resumed, and all major highways except the BP Highway have reopened.” Domestic flights at Tribhuvan International Airport, which were suspended throughout Saturday, also resumed on Sunday.

Some tourists had been stranded on Saturday, but local hotels, administrations, and communities provided support—offering discounted or even free accommodation. Joshi said this positive response has also helped promote Nepal as a destination that informs, assists, and protects tourists even during difficult situations.

Following the heavy rainfall warnings issued by the Department of Hydrology and Meteorology, the NTB reported no major damage, crediting the safety measures adopted for tourists. The board has been disseminating information through trekking agencies and tourist police offices in major destinations such as Jomsom, Namche, Lukla, Gorkha, and Pokhara. It is also coordinating through social media and hotline numbers to assist tourists. “We have been receiving information through calls from tourists, travel agencies, and tourist police,” Joshi added.

One foreigner and five Nepalis have gone missing due to continuous rains. According to Joshi, a Korean national and his companion, Pemba Sherpa, who had come to Nepal for trekking, went missing while attempting to climb Mera Peak in Taplejung. Search and rescue operations are underway. Similarly, four Nepalis who had gone trekking in Langtang are also missing, and search efforts are ongoing.

September, October, and November are considered the peak months for both domestic and international tourism in Nepal—particularly for trekking and visits to Kathmandu, Pokhara, and Chitwan. However, both domestic and foreign tourists are currently adopting a wait-and-see approach. The board has expressed optimism that the current situation caused by continuous rain, floods, and landslides will be resolved in a few days.

Promoter shares of nearly a dozen companies have not been listed on the CDS and Clearing House due to a dispute over the issuance of separate International Securities Identification Numbers (ISINs) for promoter and ordinary shares. While ordinary shares of these companies have been listed at CDS and Clearing Limited (CDSC), 1.61bn units of promoter shares are still pending.

Since January, around a dozen companies, including six in the Hydropower group, one in Manufacturing, three in Others group, and one each in Hotels and Tourism and Microfinance sectors, have launched their IPO. Promoter shares of these companies have not been listed yet.

This is mainly due to the CDSC’s proposal to require two separate ISINs—one for promoter shares and another for ordinary shares—under its new Securities Dematerialization Operating Guidelines, 2025. The guidelines, however, have not been approved by the Securities Board of Nepal (Sebon). Stakeholders also say the move lacks legal basis and could seriously disrupt the capital market.

The Independent Power Producers’ Association of Nepal (IPPAN) has warned that the provision could derail the government’s target of generating 28,500 MW within the next decade. The association has warned of protest if the new provision is not withdrawn.

Stakeholders say the dual-ISIN system would create uncertainty for companies nearing the end of their lock-in period, as well as those preparing IPOs. Likewise, promoter shareholders complain their shares, once eligible for public trading, will remain trapped which will freeze liquidity and discourage further investment. The dispute has already blocked the listing of promoter shares from companies such as Om Mega Shri Pharmaceuticals and Bikash Hydropower.

Stakeholders argue that the provision is inconsistent with international practice. “Nowhere in the world are separate ISINs issued for promoter and ordinary shares,” said IPPAN Deputy Secretary General Prakash Dulal. “If implemented, it will undermine the principle that once the lock-in period ends, promoter shares should carry equal rights as ordinary shares.”

The controversy began in December last year when Emerging Nepal Limited requested a merger of its two ISINs after its lock-in expired. Although Nepal Stock Exchange (Nepse) granted it a single stock symbol as demanded, CDSC refused to unify the ISIN without Sebon’s approval.

Sebon has said that it has yet to decide on the guidelines prepared by the CDSC. Sebon Spokesperson Niranjaya Ghimire said the directive is still under discussion.

The guidelines require listed companies to have separate share codes for promoter shares and public shares. This code is known as the ISIN. Until now, except for banks and financial institutions—where founder and public shares are assigned separate ISINs—most other listed companies have been given a single ISIN. In the case of banks, financial institutions and insurance companies, Nepal Rastra Bank and the Nepal Insurance Authority mandate that at least 51 percent of shares remain with the promoter shareholders' group. For other companies, however, no such provision exists. This means that once the lock-in period ends, promoter shares automatically become equivalent to public shares.

The matter has now reached the Commission for the Investigation of Abuse of Authority (CIAA). In the petition filed with the constitutional anti-graft body on Aug 19, plaintiffs have accused CDSC officials of jeopardizing investors’ right to property and urged Sebon to act in line with global best practices.

At present, promoter shares worth an estimated Rs 87 billion in energy, media and cement sectors remain under lock-in. Of these, the energy sector alone accounts for Rs 53bn worth of shares.

Nepal has been studying hydrogen fuel since 2008. After nearly 17 years of research, the government has begun work on producing green hydrogen fuel. A memorandum of understanding has been signed with South Korean company G-Philos to establish a green hydrogen plant and fuel cell facility in Nepal.

The Investment Board Nepal (IBN) is preparing a detailed project report (DPR) to explore producing hydrogen fuel using around 20 megawatts of electricity. According to IBN spokesperson Pradyumna Prasad Upadhyay, the proposed project is estimated to cost about Rs 6 billion. Initially, only a small-scale production will be attempted, with plans to expand depending on the feasibility study.

The agreement was signed on Thursday by IBN CEO Sushil Gyawali and G-Philos CEO Ga Woo Park. As per the agreement, the company will prepare the DPR within 10 months of receiving a survey permit from the board.

G-Philos had submitted its proposal on April 15 for the establishment, development, and operation of a green hydrogen and fuel cell plant in a public-private partnership model. The 63rd meeting of the IBN decided to grant the survey permit.

Biraj Singh Thapa, a researcher and associate professor at Kathmandu University, welcomed the agreement, noting that KU has been conducting green hydrogen research and even demonstrated a hydrogen-powered car. He highlighted that the Hydrogen Policy 2023, along with tax exemptions on machinery and equipment and a five-year income tax holiday announced in the current budget, has drawn foreign interest in Nepal’s hydrogen sector.

According to the policy, machinery and equipment imported for green hydrogen production are exempt from all taxes and duties. This, Thapa added, is expected to attract both foreign and domestic investors. The 20 MW feasibility study will also assess whether the fuel can be used domestically or exported, and identify a potential plant location.

Kathmandu University established a Green Hydrogen Lab in 2020 to research the use of hydrogen in fertilizer factories, iron ore processing, and as a coal substitute in cement industries. Hydrogen has long been considered a potential renewable energy source, and its production could help Nepal meet its commitment to achieving net-zero carbon emissions.

Several institutions have studied Nepal’s hydrogen potential. Tribhuvan University and Western Michigan University jointly concluded that hydrogen could be produced using hydropower, reducing petroleum imports. The Asian Development Bank carried out a similar study in 2020, while the Water and Energy Commission Secretariat assessed possibilities in 2021. A study in 2022 further explored hydrogen-based fertilizer production.

Globally, countries including India, China, and the United States have already developed hydrogen roadmaps and policies. Nepal’s Hydrogen Policy 2023 also recognizes significant potential for hydrogen and related products from hydropower.

Hydrogen is produced by splitting water into hydrogen and oxygen using electricity. Roughly one kilogram of hydrogen can be extracted from nine kilograms of water, requiring about 50 kilowatt hours of electricity. With abundant water resources and surplus electricity, Nepal is well positioned to produce hydrogen.

Hydrogen can be stored as a liquid, gas, solid, or metal hydride, making it suitable for domestic use or export. Studies suggest that hydrogen could replace at least two percent of Nepal’s diesel imports. Given the size of the domestic diesel market—worth around Rs 71bn—green hydrogen could play an important role in diversifying Nepal’s energy mix and enhancing energy security over the next decade.

Preparations for the Power Development Agreement (PDA) of the West Seti Hydropower Project have officially begun. A negotiation committee led by Investment Board Nepal (IBN) CEO Sushil Bhatta has been formed to draft the PDA. The decision was made during the 65th meeting of the board chaired by Prime Minister KP Sharma Oli. The committee has been tasked with holding discussions with the project developer on the PDA draft, financial structure, and related matters, and then submitting recommendations to the board.

The committee includes joint secretaries from the Prime Minister’s Office, Ministry of Finance, Ministry of Energy, and Ministry of Law; the Director General of the Department of Electricity Development; IBN’s technical joint secretary; the Deputy Managing Director of the Nepal Electricity Authority; and a senior divisional engineer (hydropower) of the board, who will serve as the committee’s member secretary.

According to IBN spokesperson Pradyumna Prasad Upadhyay, the committee will work to resolve disagreements over the project’s financial structure and finalize the PDA. The main sticking point between Nepal and India’s National Hydroelectric Power Corporation (NHPC) is the provision of 21 percent free electricity to Nepal. While the board’s agreement with the developer includes this condition, NHPC has expressed reservations, citing high costs for a reservoir-based project.

In Sept 2022, IBN signed a pact with NHPC to develop the 750 MW West Seti and the 450 MW Seti River-6 projects. The agreement specified that Nepal would receive 262 MW—21.9 percent of the total installed capacity—free of cost. NHPC has since completed and submitted its Detailed Project Report (DPR), which proposes increasing West Seti’s capacity to 800 MW and developing it as a reservoir-based project, pushing estimated costs to nearly Rs 200bn with a construction timeline of about six years.

Technical studies show that while a reservoir-based model offers higher storage capacity, it will flood over 3,300 hectares of land, displacing communities in Baitadi and Bajhang districts. The commission’s study committee earlier highlighted the high resettlement and rehabilitation costs associated with this model. Despite these challenges, both sides are continuing discussions to resolve outstanding issues, including the share of free electricity and the sale market for the power generated. Once the West Seti PDA is finalized, IBN plans to move ahead with the Seti River-6 project.

The financial management plan for the Upper Karnali Hydropower Project, submitted seven months ago, has yet to be approved. The project, which took 10 years to prepare its financial plan for the Investment Board Nepal (IBN), is being developed by India’s Grandhi Mallikarjuna Rao (GMR). GMR submitted the financial plan on Jan 17, but it has remained pending due to issues involving one of its proposed shareholders, the Indian Renewable Energy Development Agency (IREDA).

IREDA had committed to invest five percent in the 900 MW project, but the Reserve Bank of India (RBI) did not approve the investment, citing incomplete processes. IREDA has since reapplied for approval after addressing RBI’s requirements. Meanwhile, GMR has also prepared an alternative shareholding structure without IREDA, proposing 36.5 percent each for GMR and Sutlej Jal Vidyut Nigam (SJVN), and 27 percent for the Nepal Electricity Authority (NEA). If RBI clears IREDA’s participation, however, the shareholding will remain as earlier proposed—34 percent each for GMR and Sutlej, five percent for IREDA, and 27 percent for NEA.

Investment Board spokesperson Pradyumna Prasad Upadhyay confirmed that no official request has yet been received regarding the change in shareholding. The board had earlier approved Sutlej and IREDA as equity partners in its 60th meeting, and GMR had signed agreements with both in August 2025 to sell shares. According to IBN, GMR also retains the option of financing the project through the net worth of its parent company if IREDA’s investment is ultimately rejected.

GMR was awarded the project in 2008 after applying in 2006. However, the company has repeatedly extended deadlines for financial closure, including in 2016, 2017, 2018, 2019, and 2022. The financial plan was finally submitted in 2024 along with an action plan, under which some initial works—such as access road construction and bridge preparations—have already begun.

According to GMR’s plan, pre-construction work is scheduled from early 2025 to Feb 2026, with major construction starting afterward. Diversion works are set for Jan 2026 to Aug 2027, road tunnel construction from Jan 2026 to May 2027, and the Karnali River bridge from Jan to Nov 2026. The company also plans to complete the transmission line by Jan 2026. Key components such as the headrace tunnel, dam, powerhouse, and electromechanical works are targeted for completion between 2029 and 2031, with the entire project expected to be finished by June 2031.

The project, located in Achham district, aims to supply electricity to Nepal, India, and Bangladesh. Nepal will receive Rs 4.5bn in benefits over 25 years through equity, free energy, and royalties. Initially, GMR had signed a power purchase agreement to export 500 MW to Bangladesh, but the Bangladesh government suspended such deals under the Special Power Act, and its Power Development Board has reportedly cancelled the preliminary supply agreement. However, IBN says it has not received any official communication regarding this decision.

The Upper Karnali project is considered one of the lowest-cost hydropower projects in the world, requiring only a 2.4-kilometer tunnel and displacing relatively few households. But with delays in construction, the estimated cost has already escalated to nearly Rs 2.5trn.

Preparations are underway to lease large government-invested structures for full operation, with government officials stating that projects worth more than Rs 1bn are being prepared for leasing to generate returns. The government has made arrangements to lease six structures: the current Parliament Building (Birendra International Conference Center), the Sunrise Assembly Hall in Godavari, Dharahara in Sundhara, the Damak Business Center, and the Assembly and Exhibition Halls in Butwal.

Since the government cannot use these structures intensively, they are not generating adequate returns. The government has proposed to improve their operation through partnerships with the private sector via leasing. However, there is currently no law or established practice for leasing government buildings and structures.

Although there is no law, the government is preparing to move forward by setting its own standards. According to Narayan Prasad Mainali, spokesperson for the Ministry of Urban Development, the ministry has already prepared standards for operating special structures for leasing government buildings. The former Birendra International Conference Center (now the Parliament Building) has been renamed, and a ‘Special Structure Management and Implementation Committee’ has been established. The government formed this committee under the ‘Special Structure Operation and Management Development Committee (Formation) Order, 2024’.

This government committee is responsible for the operation, management, conservation, and potential partnership (lease/rent) processes for government structures. The committee was formed in Nov 2024 after it became apparent that billions of rupees invested in these buildings would result in them remaining vacant, incurring losses, or being economically unsustainable if used only by government agencies. The committee was given the responsibility of deciding the operational model for these assets (government, private partnership, or lease). 

The chairperson of this committee is the secretary of the Ministry of Urban Development, and the executive director is a government-designated individual. However, the executive director position has been vacant for about three months. “An advertisement has been issued for the post. The committee will get an executive director at some point. Until then, I have been assigned the responsibility,” said spokesperson Mainali.

According to Mainali, a board meeting of the committee is being held on Sunday, where the criteria for the operation of special structures, prepared by the Ministry of Urban Development, will be presented. He says that once the meeting passes the criteria, they will be submitted to the Ministries of Law and Finance for their opinions. “After receiving opinions from these ministries, it will be submitted to the Council of Ministers for approval, and the standards will be implemented with the approval of the Council of Ministers,” Mainali stated.

“A leasing document has been prepared that details the total government investment in the specified structures, operating expenses, and the projected return period. The standards have been set to lease for about five to six years,” Mainali said. Based on this, the price of each structure will be determined, and a tender will be called for an amount not less than that.

Of the six structures the government is preparing to lease, the Sunrise Assembly Hall, Damak Business Center, and Butwal Assembly Hall have been completed. Some construction work is still pending on the Dharahara in Sundhara and the Butwal Exhibition Hall. The Parliament Building in New Baneshwor was constructed by the Chinese government around 1993. The BICC Building, which was previously used for meetings and conferences, has been used as the Parliament Building by the government since the establishment of the Republic.