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Rastriya Swatantra Party (RSP) chairman and former Deputy Prime Minister Rabi Lamichhane has spent 13 days in police custody in Kaski, sparking street protests from his party members and supporters who argue his arrest is politically motivated. They contend Lamichhane is uninvolved in the alleged misappropriation of cooperative funds and that his detention is intended to weaken RSP. Lamichhane, previously a TV show presenter and managing director of Gorkha Media, which owns Galaxy Television, was arrested based on a parliamentary probe into cooperative fund misuse nationwide.

Some cooperative victims have filed cases against Lamichhane in Pokhara and Lumbini. While the parliamentary panel found no direct evidence linking Lamichhane to cooperative fraud, it noted substantial cooperative funds had flowed into Gorkha Media, where Lamichhane holds a minor share and acted as managing director. Police are investigating him on charges of cooperative fraud, money laundering, and organized crime. Reports indicate JB Rai, a key figure connected to the case, is in communication with state authorities, signaling his willingness to return to Nepal and assist in the investigation.

The Rupandehi court has permitted police to arrest Lamichhane for further inquiry, suggesting that the process may extend, particularly given the money laundering charges. Lamichhane’s lawyers argue that his role as managing director of Gorkha Media does not inherently imply misappropriation, emphasizing that his lack of direct involvement in cooperatives exempts him from fraud charges. Meanwhile, RSP leaders claim Lamichhane’s arrest is part of a broader political agenda to hinder RSP’s influence, which critics view as an attempt to interfere with judicial processes through public protests and pressure on the government. They are also said to be in talks with the ruling parties to make an environment for his release stating that investigation can be continued even after freeing him.

Lamichhane, who transitioned from popular television host to political leader, founded RSP in 2022. His efforts to advocate for Nepali migrant workers and expose corruption earned him substantial public support, propelling his party to become the fourth-largest in the House of Representatives with 21 seats. 

Growing public dissatisfaction against major political parties—Nepali Congress, CPN-UML and CPN (Maoist Center)—also helped the party. Initially, RSP had few prominent faces aside from Lamichhane, but figures like Swarnim Wagle have since joined, expanding the party's profile.

Lamichhane’s political career was hit by one controversy after another right from the beginning. Soon after he was elected to the House of Representatives and became Minister for Home Affairs, the legality of his citizenship came into question. He was also accused of holding dual passports. He lost his parliament seat over his citizenship controversy and had to re-contest the election from Chitwan, which he won comfortably.  The issue of his citizenship has already been resolved but the one relating to his alleged dual passport still remains.

Lamichhane’s arrest over cooperative fraud has polarized public opinion. Some view it as a necessary legal action following parliamentary recommendations, while others see it as an orchestrated attack by established parties seeking to stymie RSP’s rise. RSP leaders highlight inconsistencies in enforcement, citing the government’s reluctance to arrest figures linked to cooperative fraud within the ruling coalition, such as Dhana Raj Gurung from Nepali Congress and others associated with CPN-UML. Prime Minister KP Sharma Oli noted that 600 arrests have been made in connection with cooperative fraud, though RSP claims selective enforcement targeting Lamichhane alone is politically driven.

The 2022 general elections and subsequent by-elections indicated that RSP could pose a significant threat to the three major parties. But whether Lamichane’s arrest could benefit the party or affect its popularity remains unknown. Already, there are concerns that if Lamichhane gets convicted, the party could face a political setback. RSP is yet to build its organizational structure, particularly at the local level. The party has solely relied on its popularity as an alternative political force against the old parties to win votes. 

Now amid Lamichhane’s prolonged detention, his party is concerned by signals indicating his potential detention until the Chhath festival. RSP leaders say this extension represents systematic harassment and misuse of state resources. The Kaski District Government Attorney's Office will decide whether to formally charge Lamichhane based on the ongoing police investigation. If charged, he would face suspension from his parliamentary seat and trials in Rupandehi and Chitwan for alleged involvement in cooperative fraud.

The RSP has adopted a dual strategy of mobilizing street protests and engaging in dialogues with other political entities to secure Lamichhane’s release. They have organized a protest coordination committee led by Vice-chairman Dol Prasad Aryal, alongside a political-civic dialogue committee headed by Wagle, to build alliances with like-minded parties, civil society, and the public. Although RSP’s constitution allows its vice-chairpersons to manage operations in Lamichhane’s absence, internal confusion over shared responsibilities has prevented the appointment of an acting president.

With RSP claiming retaliatory state actions against their leader, they continue to press for his release, advocating for an investigation that respects due process while cautioning against a selective legal approach that could undermine public trust.

Nearly a decade ago, Baburam Bhattarai broke away from the CPN (Maoist Center) to form a new political party, aiming to provide an alternative to the established parties. His departure was rooted in the belief that, while existing parties had successfully drafted Nepal’s new constitution and ended a prolonged transitional period, they lacked the vision and capability to foster sustainable economic growth and political stability. Bhattarai urged Maoist Chairperson Pushpa Kamal Dahal to abandon Maoism in favor of socialism, but Dahal declined.

Since then, Bhattarai’s vision of creating an alternative force has yet to materialize. His former allies within the Maoist party have returned to support Dahal’s CPN (Maoist Center), and Bhattarai’s influence in national politics has waned, with no parliamentary representation for his party.

In the 2022 elections, Bhattarai had a strong chance of winning in Gorkha-2 but chose to back the CPN (Maoist Center) in exchange for support for his daughter, Manushi Yami Bhattarai, in Kathmandu-7. Despite Bhattarai’s hopes, his party faced heavy defeats in both 2017 and 2022 elections. Nevertheless, he maintains that only a new political force can lead Nepal towards political stability and economic progress, predicting further frustration and potential anarchism if the current major parties continue to dominate.

Bhattarai has suggested a merger of the CPN-UML and CPN (Maoist Center), though he believes even a united party would lose relevance within a decade. Reflecting on the Maoist movement, he sees its historic role as complete, with the remaining task of evolving into an “enhanced and enriched socialism” within a participatory and inclusive democracy. He dismisses the notion of reuniting all Maoist factions as impractical and unnecessary.

Regarding the Nepali Congress (NC), Bhattarai believes it will weaken further but continue to play a moderate role. He argues that Nepal needs a new center-left political alternative, although his efforts to build such a force have so far failed. While several smaller parties, such as Rastriya Swatantra Party, have emerged claiming an alternative stance, they have not yet become formidable players. Figures like Kathmandu Mayor Balendra Shah and the Bibeksheel Sajha Party also represent this potential but remain largely marginalized in national politics.

Despite these setbacks, Bhattarai remains committed to forming an alternative political front. In 2016, he launched the Naya Shakti Party, although it went through several transformations and mergers, including with Upendra Yadav's party. The recent reversion to the name ‘Naya Shakti Party’ and the reinstatement of its original flag underscore Bhattarai’s determination to revive his initial vision.

Bhattarai’s Nepal Samajbadi Party (NSP) has outlined key priorities: advocating for a directly elected executive president, a fully proportional legislative system, and accelerated action on transitional justice through the Truth and Reconciliation Commission and the Commission on Enforced Disappeared Persons. The party has also called for an investigation into the misuse of funds within the cooperative sector, demanding justice for depositors and impartial prosecution of wrongdoers, regardless of political connections.

On disaster management, NSP urges the government to assess recent flooding and landslide damages, deliver immediate relief, and initiate infrastructure rehabilitation. They emphasize preparedness and resource allocation for disaster response, calling on the state to maintain a robust readiness for any future crises.

In combating corruption, the NSP demands the formation of a Jan-Lokpal commission with the authority to investigate major corruption cases and prosecute offenders from all levels of government. Furthermore, they stress the importance of infrastructure development, urging the government to prioritize highway expansion and transportation improvements.

On international matters, the NSP has condemned Israeli actions against Palestinians and encouraged the Nepalese government to adopt a clear stance on international conflicts. The party has called for diplomatic efforts to secure the release of Nepali citizen Bipin Joshi, reportedly held by Hamas.

As Prime Minister KP Sharma Oli completes his first 100 days in office, public reaction to the government’s performance is mixed. Despite unveiling a long list of accomplishments, criticism from both the ruling party and opposition focuses on allegations of corruption and failures in governance.

Oli claims that 70 percent of the government’s targets have been achieved, but this is part of a routine practice where governments present progress reports during their "honeymoon period" that often fail to impress the public. After forming the government, there was a delay in setting priorities, with a shared policy resolution introduced only after 67 days. As a result, beyond routine matters, the government has made little substantive progress.

In July, the Nepali Congress (NC) and CPN-UML formed a coalition government, promising political stability and economic development. They also pledged to amend the Constitution, but there has been little action. After 100 days, there is no visible enthusiasm for the amendments within the ruling parties. NC and UML have yet to initiate discussions within their parties or with others on potential changes, particularly to the electoral system and federalism. Meanwhile, opposition parties, including the CPN (Maoist Center), have started cautioning against regressive changes to the constitution.

Despite the coalition’s promise of government stability, reports of a growing rift between NC and UML have surfaced. Oli has repeatedly reassured the public that his government will last its full term, but there are signs of internal division. Tensions have arisen over issues such as the removal of Kul Man Ghising from Nepal Electricity Authority, changes to party split laws and ambassadorial appointments. Fringe parties have also expressed growing dissatisfaction with the government.

The ruling UML's decision to accept donations from businessman Min Bahadur Gurung for party office construction has also drawn strong criticism, including from within the party. On the external front, the government has made little headway. Foreign Minister Arzu Rana Deuba’s visits and Prime Minister Oli’s meeting with Indian Prime Minister Narendra Modi at the UN General Assembly have yielded limited progress. Relations with China have also stagnated.

Meanwhile, tensions between ruling and opposition parties are escalating, with the opposition warning of street protests in the coming months. The arrest of former home minister and Rastriya Swatantra Party Chair Rabi Lamichhane has further strained relations. Opposition leaders, including Pushpa Kamal Dahal of the Maoist Center, claim Lamichhane’s arrest was politically motivated and that the government is targeting opposition figures while neglecting broader governance issues. Dahal has accused the government of selective prosecution in corruption cases.

The Maoist Center is preparing to organize a demonstration in Kathmandu to warn the government against taking any decisions targeting the opposition parties. Dahal is of the view that the government has become too weak in governance and is targeting the opposition parties on the pretext of fighting corruption.

Another contentious issue is Oli’s attempt to introduce an ordinance to lower the threshold for party splits. Under current law, 40 percent of lawmakers are required to split a party, but the proposed ordinance would reduce this to 20 percent, enabling members of CPN (Unified Socialist) to defect to UML. Opposition parties have urged President Ramchandra Paudel to reject the ordinance, warning that it could create a rift between the President and Prime Minister. So far, the President has avoided major controversies.

In its first 100 days, the government has made little progress in addressing the country’s economic challenges, and there have been no visible improvements in governance or service delivery. Dissatisfaction is growing, both within major political parties and among the public, as optimism fades about the government’s ability to deliver meaningful change or stability.

Germany is gradually easing its laws on citizenship, immigration and visas to attract migrant workers to address increasing labor shortages. As a result, the European nation is becoming an appealing destination for youth seeking jobs and education for countries like Nepal. Many Nepali students and migrant workers are currently heading to countries such as the US, Canada, Australia, and the Middle East. 

Germany needs 400,000 foreign workers annually to bridge its labor gap, according to the country’s Federal Employment Office. Recent data shows that 10,670 Nepali workers and students have already chosen Germany. Nepali citizens can apply for a German work visa if they meet any of the following criteria: completion of a recognized training course or study program, a degree equivalent to a German qualification, a degree recognized in Germany, at least five years of professional or academic experience, vocational training, and German language proficiency.

In 2023, the German Parliament passed legislation aimed at attracting workers from non-European countries. Germany is now looking at South Asia and Southeast Asian countries for skilled laborers to keep its economy moving. The new law prioritizes work experience over academic qualifications, allows foreign workers to bring their families, and offers a pathway to citizenship. Germany has also relaxed its citizenship policy—anyone with five years of work experience in Germany and strong German language skills can apply for citizenship. This shift is driven by an aging population, with baby boomers retiring and birth rates steadily declining.

Germany’s population is at risk of long-term decline, with a birth rate of only 1.5 children per woman—below the two children needed to sustain the population. Without immigration, this trend is expected to continue. After a baby boom in the 1960s, birth rates began to decline from the 1980s onward. According to DW, there have been significant changes in birth patterns in a long-term comparison with 2013. In 2013, 49.4 percent of births were first children, 34.4 percent were second children, and 16.1 percent were third or subsequent children. However, between 2013 and 2023, the proportion of first-born children has decreased, while births to third or later children have increased.

According to migration expert Frank Burgdörfer, most women in the 1970s had children in their early 20s, but today, they are more likely to have children in their 30s. Without migration, Germany’s population will continue to shrink, while the number of people requiring care is steadily rising, he added.

Germany’s labor market is now facing multiple challenges. Unemployment is gradually declining, while job vacancies are increasing daily. According to Burgdörfer, sectors with high demand include finishing and dry construction, geriatric care, industrial glass production, metal production and construction, building construction, and vehicle and aircraft manufacturing.

In eastern Germany, 39.7 percent of businesses are struggling with skilled labor shortages, compared to a lower 31.8 percent in Hessen and Rhineland-Palatinate, according to Burgdörfer. Employers in many eastern regions face particular challenges in recruiting highly skilled young workers due to a noticeable decline in the working-age population and low net migration. Structurally weak rural areas and small towns are especially vulnerable, potentially falling behind economically as a result, he added.

Official statistics show that the working-age population is expected to shrink by 1.6m to 4.8m over the next 15 years, while the number of people reaching retirement age (67 or older) will increase significantly throughout the 2020s and 2030s.

Germany plans to attract 400,000 skilled workers annually. But there are various challengers. High taxes and the difficult German language pose major barriers, especially as Germany competes with the USA, Canada and China for talent. Following the Russia-Ukraine war and other global conflicts, Germany has seen an influx of refugees. However, integrating them into the workforce has proven challenging due to language barriers and lack of vocational skills. While humanitarian immigration has increased, it has not translated effectively into meeting Germany's skilled labor demands.

Various German institutions, including the Goethe Institute, are working to support successful integration into the German labor market. According to Schengen News, Germany granted 80,000 work visas in the first half of 2024, with 40,000 issued to skilled workers—3,000 more compared to the same period of 2023.

Ralph Heck, chairperson of the Bertelsmann Foundation, said that population aging is evident across almost all German states. The percentage of people aged 65 and above is projected to increase from 22 percent in 2020 to 28 percent in 2040, while the working-age population will decline from 54 percent to 48 percent.

A March 2024 report by the Federal Institute for Population Research revealed that live births in 2023 fell to their lowest level since 2009. The birth rate dropped from 1.57 per woman in 2021 to approximately 1.36 in autumn 2023. According to the report, West Germany's birth rate has historically remained low, fluctuating between 1.2 and 1.4 children per woman for four decades after 1975.

Germany’s most in-demand professions include green jobs, nursing professionals, physicians, engineers, IT specialists, scientists, craftspeople, and various healthcare roles such as dental assistants, medical assistants, veterinary assistants, physiotherapists, occupational therapists, pharmacists and podiatrists. Nepal and Germany signed an agreement for legal labor migration in October last year. Labor ministry officials say Germany is looking to recruit some 3,000 workers from Nepal.

China has sought Nepal’s support in its bid to maintain peace by ending the ongoing Russia-Ukraine war and growing crisis in the Middle East. 

Chen Gang, a member of the Communist Party of China Central Committee, made such a statement during talks with top leaders of major political parties. Chen, who is also secretary of the CPC Qinghai provincial committee, led a delegation that visited Nepal Oct 19 to 20.

The Chinese delegation discussed the current global crisis, including the ongoing wars, and informed us about Beijing’s attempts to end the war, said a Nepali leader requesting anonymity, asking Nepal for support in its peace bid and hailing Nepal as a land of peace where Gautam Budha was born.

Both in the Russia-Ukraine war and in the Mideast, China is playing the peacemaker by leveraging its clout. Both Russia and Ukraine recognize the importance of including Beijing in their negotiations. The Chinese delegation, during the interaction with Nepal’s communist parties, discussed a range of bilateral issues, including Xi Jinping’s short visit to Nepal in 2019. 

According to Xinhua, during the stay in the Himalayan country, the CPC delegation had exchanges with leaders of Nepal’s political parties and attended a briefing on the spirit of the third plenary session of the 20th CPC Committee, which was focused on sharing the opportunities brought by the Chinese-style modernization and deepening the trans-Himalayan cooperation.

In meetings and exchanges with the CPC delegation, the Nepali side reaffirmed commitment to the one-China policy and expressed the willingness to further strengthen inter-party exchanges with the Chinese side, and to deepen cooperation in various fields, promoting the continuous development of relations between the two countries, Xinhua reports. 

According to Nepali leaders, the Chinese side focused on enhancing ties on multiple fronts, including in the agriculture sector. Of late, the Chinese side is expressing readiness to support Nepal's agriculture sector but Nepal has not come up with any concrete proposal. A few weeks ago, Chinese Ambassador to Nepal Cheng Song had said that his country was ready to lend support to Nepal for establishing a fertilizer plant. Unlike the previous delegation, this delegation did not raise the Belt and Road Initiative, according to a leader. 

Of late, CPC has stepped up engagement with Nepal’s political parties and the government.

Dear readers,

I usually publish my newsletter every Friday. However, with the Dashain break approaching, I’m sharing this update midweek. While Dashain is here, many of us are not in a festive mood. The recent floods and landslides, which tragically claimed 246 lives and left others missing, have cast a shadow over the celebrations. In some areas, victims are still struggling to access basic daily essentials. Although people have started leaving Kathmandu to celebrate Dashain, many highways and roads remain in poor condition, contributing to accidents.

Reports indicate that the monsoon, which brings 80 percent of the country’s annual rainfall, is withdrawing. While heavy rains are unlikely, moderate to light rainfall may continue. These disasters have forced policymakers to reconsider the current development model.

On the political front, there have been no major developments. Former King Gyanendra Shah recently made an unofficial visit to Bhutan, receiving royal treatment, sparking speculation about its potential political impact. Royalist factions are celebrating, suggesting this could help build support for the monarchy’s return. However, major political leaders have yet to comment.

The implementation of recommendations from parliamentary probes into cooperatives has been slow, possibly due to the aftermath of the floods or a lack of political will. Rabi Lamichhane, leader of the Rastriya Swatantra Party, is facing protests from cooperative victims in his home district, Chitwan. Earlier concerns about his arrest have eased.

Meanwhile, Prakash Man Singh Raut has assumed office as the 32nd Chief Justice of Nepal. He faces the daunting task of restoring public trust in the judiciary, which has suffered in recent years. With a reputation for fairness and impartiality, legal experts believe his 18-month term could bring judicial independence. Born in Udayapur in 1961, Raut’s career includes being a Supreme Court Justice since 2016, a former advocate, and president of the Supreme Court Bar Association in 2006.

In environmental news, Nepal is set to receive payments for reducing carbon dioxide emissions through its forests in 13 Tarai districts. Between 2018 and 2024, the country is expected to receive $5 for every ton of carbon sequestered, totaling 2.4m tons under the Tarai Arc Landscape Program. This payment is due by October.

In international news, Israel recently held memorials marking one year since a Hamas-led raid, the deadliest attack in its history. The situation in the Middle East remains volatile, raising concerns for the safety of Nepali workers in Lebanon and Israel. Foreign Minister Arzu Rana Deuba has urged Nepal’s ambassadors to prepare for potential emergencies.

During the Dashain holiday, the print edition of The Annapurna Express will take a break, but we will continue to provide breaking news, analysis and updates on our online platform at theannapurnaexpress.com. Please visit our website for the latest updates.

The festive season is here but it’s been a sobering week for the country. Floods and landslides, triggered by heavy rainfall early this week, caused unprecedented damage to lives and properties across Nepal. According to the Ministry of Home Affairs, 242 people lost their lives and dozens are still missing. A preliminary government assessment estimates that the disaster caused damages worth over Rs 6bn in damages to the agricultural sector, with paddy crops suffering the most, accounting for Rs 3.5bn in losses.

Floods and landslides affected 58,476 hectares of paddy fields across districts such as Saptari, Siraha, Dhanusha, Mahottari, Sarlahi, Rautahat, Bara, Parsa, Nawalparasi East, Baglung, Khotang, Jhapa, Kailali, Lamjung, Parbat, Kaski, Syangja, Makwanpur, Kavre and Sindhuli. The actual extent of the damage may be even higher, as many affected areas remain inaccessible. 

Natural disasters are unpredictable and occur worldwide, but last week’s events in Nepal offer important lessons for the government. A single agency must take a more proactive and prepared approach to minimize the damage. Additionally, the government needs to take environmental concerns seriously, as unchecked development at the local level and excessive exploitation of natural resources are contributing to increased landslides and floods. 

The government’s response after the disaster was also slow, with delays in rescuing trapped people and providing immediate relief. Although the National Disaster Risk Reduction and Management Authority was established a few years ago to handle such crises, it has come under public scrutiny for its poor management. Prime Minister Oli admitted that the country was unprepared for disasters of this scale. There is still a lack of coordination and communication among state agencies and the three levels of government.

Erratic rainfall patterns, exacerbated by climate change, are expected to bring more floods and rainfall in the future, and the government must enhance its preparations. Key security forces, such as the Nepali Army and the Armed Police Force, need better equipment and training to respond effectively to natural disasters. Unfortunately, history shows that we tend to forget these disasters quickly and fail to prepare adequately. The Melamchi flood of 2021 should have been a wake-up call, yet little has been done since then. Amid this crisis, the Dashain festival, the largest and longest in the Hindu calendar, has begun. Many are hopeful that the government will expedite the repair of major highways to ensure smoother travel during the festivities. 

In other news this week, Prime Minister Oli recently returned from an extended visit to New York, where he addressed several United Nations programs and held bilateral talks with leaders from other countries. While in New York, Foreign Minister Arzu Rana Deuba met with senior US officials to discuss bilateral relations. Nepal and the US have established a Bilateral Consultation Mechanism to discuss key issues annually. However, Prime Minister Oli faced criticism for being abroad while the country was in the midst of a crisis caused by floods and landslides. In contrast, opposition leader Pushpa Kamal Dahal of the CPN (Maoist Center) stepped into the spotlight, calling an all-party meeting to discuss the disaster and visiting flood-affected areas. 

Prakash Man Singh Rawat is set to become Nepal’s next Chief Justice after being endorsed by the Parliamentary Hearing Committee, as current Chief Justice Bishowambhar Prasad Shrestha retires this week. Meanwhile, the Chairman of the Nepal Bar Association, Gopal Krishna Ghimire, is facing contempt of court charges in the Supreme Court over comments related to judicial appointments. 

This week, the Supreme Court also sentenced the publisher Yubaraj Kandel and executive editor Nabin Dhungana of the online portal Sidhakura.com to three months in prison for contempt of court. On April 26, the news portal had published a fake news report, claiming that the leadership of Annapurna Media Network and Kantipur Publications were part of a secret meeting involving sitting and former Supreme Court justices and senior lawyers to dismiss more than 400 corruption cases. 

On the economic front, there was some good news this week. The World Bank projects that Nepal’s economic growth will accelerate to 5.1 percent in 2025, up from 3.9 percent in 2024, driven by a recovery in tourism, increased hydropower production and improved paddy yields. The World Bank projects 5.5 percent growth for Nepal by the fiscal year 2026. The International Monetary Fund also issued a positive outlook for Nepal’s economy last week. The private sector is expected to benefit from the central bank’s more relaxed monetary policies and eased regulations. 

However, there are significant risks to this outlook. The financial sector faces vulnerabilities, including a rise in non-performing loans, which could limit credit growth for the private sector. Delays in capital spending could slow infrastructure development, and regional instability and trade disruptions could hurt tourism and domestic demand. Additionally, recent natural disasters may impede Nepal’s economic recovery.

That’s all for this week. Stay safe

The 79th United Nations General Assembly provided an opportunity for Nepal and the United States to discuss bilateral, regional and international issues. On the sidelines of the meeting, Prime Minister KP Sharma Oli and Foreign Minister Arzu Rana Deuba engaged in talks with senior US officials.

During a ceremony at the State Department, Nepal and the US agreed to establish a bilateral consultation mechanism. Foreign Minister Deuba and US Acting Under Secretary for Political Affairs, John Bass, signed the agreement, with senior officials from both sides in attendance. Nepal has similar mechanisms in place with several other countries.

After the meeting, Foreign Minister Deuba said, “A historic milestone in Nepal-US relations has been achieved with the signing of the Bilateral Consultation Mechanism (BCM) Memorandum of Understanding (MoU).” She added the agreement would promote deeper cooperation in areas such as trade, investment, tourism and infrastructure, thereby laying a stronger foundation for mutually beneficial cooperation between the two countries.

Prime Minister Oli and Foreign Minister Rana also met with Alice P Albright, CEO of the Millennium Challenge Corporation (MCC), to discuss the progress of MCC projects in Nepal. The US has encouraged Nepal to foster a favorable environment for smooth implementation of the MCC. Thirteen months have passed since the MCC came into effect, and its projects are supposed to be completed within four years. Recent progress at the local level has been positive, which is a good thing. Senior MCC officials have been consistently engaging with Nepal’s top leaders to ensure there are no obstacles to the project's implementation.

Additionally, Foreign Minister Deuba met with Uzra Zeya, US Undersecretary of State for Civil Security, Democracy and Human Rights, to discuss Nepal’s transitional justice issues, human rights and democracy. Zeya, who visited Nepal in 2022, has long advocated for the human rights of Tibetan refugees in Nepal. The US has requested that Nepal resume the process of issuing identity cards to these refugees.

USAID Administrator Samantha Power also met with Prime Minister Oli to discuss the enduring partnership between USAID and Nepal. Power welcomed Nepal’s recent passage of transitional justice legislation and its participation as a founding member of the “Partnership for a Lead-Free Future.” The two sides also discussed ongoing support for Nepal’s development efforts, focusing on health, agriculture, economic growth, and improving public service delivery.

Deputy Secretary of State for Management and Resources, Richard Verma, visited Nepal, where he met with Prime Minister Oli and other senior leaders. Verma expressed the US intention to provide $100m in Foreign Military Financing to enhance Nepal’s rotary wing capabilities, pending Congressional approval and the availability of funds. The discussions also included continued cooperation on sustainable economic development, particularly through the MCC, which aims to increase access to clean energy, as well as a USAID-funded project to promote Nepal’s tea industry through the Nepal Tea Collective.