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The Karnali Corridor, a key component of the ‘South and North Axis Growth’ initiative, serves as a vital link connecting Nepal, China, and India. Recently, the federal government announced a contract for the highway's upgrade, allocating Rs 4.2bn for the project. This development has been met with enthusiasm by the residents of Karnali. Shankar Prasad Upadhyay, Mayor of Tilagufa Municipality in Kalikot, expressed his excitement, stating, “The federal government has prioritized the upgrade of the Karnali Highway, addressing a long-standing issue in the region. This is a moment of great joy for us.”

The Karnali Corridor stretches from Hilsa in Humla, near the China border, to Jamunah in Banke, bordering India. The corridor was named 23 years ago, with construction beginning in 2000 when the then Deputy Prime Minister (now President) Ram Chandra Poudel laid its foundation stone in Khulalu, Kalikot. Although the track was officially opened in 2018, progress on upgrading the highway has been slow.

The total length of the road from Jamunah to Hilsa is 505 km. The southern section, spanning 269 km, runs from Khulalu in Kalikot to Piluchaur in Bajura and onward to Simkot and Hilsa near the China border. The southern section includes the 123-km Karnali Corridor South Section (Khulalu-Sallisalla) and the 146-km Karnali Corridor North Section (Hilsa-Simkot-Sallisalla), which falls under Humla's jurisdiction. Last year, a contract was managed for the 60-km stretch from Khulalu to Piluchaur, with an allocation of approximately Rs 20m.

Pankaj Singh Dhami, an engineer with the Karnali Corridor Road Project in Kolti Bajura, stated that a contract worth Rs 4bn has been called for the construction of 50 km of road, covering the Piluchaur-Kuwadi (Bajura section) and Kuwadi-Tumchaur (Humla section). He added that graveling, road widening, and drain construction have been ongoing since Khulalu. “We have already called for two multi-year contracts to complete the Piluchaur-Tumchaur section, and work will commence shortly,” he said.

The project includes blacktopping 23.7 km of the Piluchaur-Kuwadi road and 26.3 km of the Kuwadi-Tumchaur road in Bajura. The multi-year contract targets completion within three years of signing. The road will be widened to 5.5 meters on difficult slopes, 7.75 meters in other areas, and 9 meters in market areas. Additionally, Rs 340m has been allocated this year for the Karnali Corridor North Section (Hilsa-Simkot-Sallisalla) Planning Office, with road upgrading work already underway in the Simkot-Hilsa section since last year.

Another significant highway in the region, the Ratna Highway, which connects Kohalpur-Surkhet-Bangesimal, is also slated for upgrades. This 90.75-km road links Banke, Bardiya, and Surkhet. The Road Department has submitted an environmental impact assessment report to the Ministry of Forest and Environment, indicating that no additional land acquisition will be required as the project will utilize existing land within the road's jurisdiction. The estimated cost for this upgrade is Rs 6.5bn, with a target completion time of four years.

Manav Bam, General Secretary of the Federation of Construction Entrepreneurs in Karnali Province, highlighted the importance of the upgrades, stating, “The current highway entering Karnali Province is narrow and prone to frequent blockages. The federal government’s commitment to ensuring the budget for a two-lane highway is a significant step forward. This will serve as a gateway to Karnali, facilitating the transportation of development and construction materials.”

The project also includes the upgrade of 38 dilapidated bridges along the route. The Ratna Highway connects Birendranagar, the capital of Karnali Province, with Nepalgunj, the commercial hub of Lumbini Province, and other major cities. Starting from Kohalpur Chowk on the East-West Highway, it ends at Bangesimal in Birendranagar, Surkhet. The environmental impact assessment report notes that 4,348 trees in community forests and 6,053 trees in national parks will need to be cut, totaling 10,886 trees.

These infrastructure upgrades are expected to significantly enhance connectivity and economic development in the Karnali region, fostering greater integration with neighboring countries and improving the quality of life for local residents.

The second Financial Action Task Force (FATF) Plenary under the two-year Mexican presidency began in Paris on Wednesday. Delegates from 200 members of the Global Network and observer organizations, including the International Monetary Fund, the United Nations, the World Bank, INTERPOL and the Egmont Group of Financial Intelligence Units are participating in the three-day plenary. According to FATF, the plenary will discuss important developments in combating illicit finance that fuels global crime.

It will also discuss strengthening financial inclusion through risk-based implementation of FATF Standards. Delegates will also review progress made by jurisdictions identified as presenting risks to the financial system.

Finance Ministry sources say the plenary is expected to decide whether to place Nepal on the gray list—an informal designation for countries with strategic deficiencies in combating money-laundering and terrorist financing.

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said last month that Nepal has laid a strong foundation to exit the gray list if listed. “Nepal is currently in the listing phase after completing its mutual evaluation period. Even if we are listed, we have laid a strong foundation to exit the gray list,” Adhikari said during Anti-money Laundering Day celebrations in Kathmandu on Jan 27.

Officials say the FATF, an intergovernmental body that sets global standards for anti-money laundering (AML) and counter-terrorist financing (CFT), has expressed concerns over Nepal’s slow progress in key areas. While Nepal has made legislative reforms, international observers have criticized delays in investigations, prosecutions and enforcement of AML/CFT measures.

Nepal’s mutual evaluation process, which began in June 2022, identified several gaps in the country’s AML/CFT framework. A team from the Asia/Pacific Group on Money Laundering (APG), comprising experts from Australia, Bangladesh, Fiji, Malaysia, New Zealand, the Philippines and Sri Lanka, made 11 immediate recommendations for improvement. Officials acknowledge that progress in implementing these reforms has been unsatisfactory.

Nepal was previously on the gray list from 2008 to 2014 but was removed after establishing legal and institutional frameworks. Deputy Prime Minister and Finance Minister Bishnu Paudel also said Nepal’s efforts to address money-laundering risks were insufficient. “Efforts have been made to avoid being pushed into a high-risk or monitored category, but we have not been as effective as required,” he said during anti-money laundering day celebrations.

The government had made preparations to amend over a dozen laws through an ordinance in Oct 2022, targeting key legislation including the Money-laundering Prevention Act, Cooperative Act, Tourism Act, Nepal Penal Code and Foreign Investment and Technology Transfer Act. However, the President refused to issue the ordinance.

Parliament passed the anti-money laundering bill only in Feb 2023, amending several laws to align with international standards. Despite these efforts, experts say challenges remain in addressing issues such as proxy ownership of assets, underreporting of property values and large cash transactions. Home Ministry spokesperson Ram Chandra Tiwari said in a press meet on Monday that the ministry has failed to complete two critical tasks: developing software for targeted financial sanctions to reduce terrorist financing risks and regulating non-profit organizations. The FATF will announce the outcomes of the Plenary meeting on Friday.

The price of gold has increased by Rs 1, 100 per tola in the domestic market on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 170, 500 per tola today. It was traded at Rs 169, 400 per tola on Tuesday.

Similarly, the silver is being traded at Rs 1,  195 per tola today.

Insurance companies have invested over Rs 30bn in the stock market.

According to the National Insurance Authority (NIA), life and non-life insurance companies have invested a combined Rs 30.16bn in the securities market. While life insurance companies have invested Rs 25.77bn in listed companies, non-life insurance companies have invested Rs 4.39bn as of mid-January of the current fiscal year.

The investment of life insurance companies in the stock market has increased by a whopping 97.66 percent over the past year. Such investments rose from Rs 13.37bn in mid-Jan 2024 to Rs 25.77b in mid-Jan 2025.

Ten life insurance companies have invested over Rs 1bn each in the secondary market. According to NIA, Himalayan Life Insurance has made the highest investment of Rs 7.33bn, followed by Nepal Life Insurance (Rs 3.81bn) and Suryajyoti Life Insurance (Rs 2.31bn).

Citizens Life Insurance increased its investment in the stock market by a staggering 507.4 percent during the review period. The company, which had invested Rs 141.8m as of mid-January last year, has increased its investment to Rs 861.3m. Rastriya Jeevan Beema Company kept its stock market investment unchanged at Rs 2.15bn over the one-year period.

investments by non-life insurance companies in the share market have risen by 26.24 percent over the past year. Non-life insurers had invested Rs 3.47bn in the stock market as of mid-Jan 2024.

Among non-life companies, Rastriya Beema Company (Rs 794.1m) has made the highest investment in the stock market as of mid-January, followed by Neco Insurance (Rs 605.1m) and Sagarmatha Lumbini Insurance (Rs 533.7m).

NLG Insurance increased its stock market investment by 450 percent to Rs 128.7m over the one-year period. Sanima GIC Insurance also raised its investment in securities by 373.18 percent to Rs 344m as of mid-January.

The existing law allows insurance companies to invest up to 10 percent of their technical reserves in the secondary market. “Insurance companies can invest up to 10 percent of their total technical reserves in the ordinary shares of public limited companies listed on the securities exchange markets licensed by the Nepal Securities Board,” reads the Investment Guidelines, 2018, issued by Beema Samiti (now NIA).

The total investment of life and non-life insurance companies stands at Rs 772bn. This means insurance companies can invest a maximum of Rs 77.2bn in the stock market. However, they are investing less than 50 percent of the allowed limit in the stock market.

Insurance experts say there is room for insurance companies to invest another Rs 40bn in the secondary market.