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The government has floated a preliminary draft of the new Aviation Policy, 2025, for public consultation, outlining ambitious measures to boost international connectivity, promote investment and modernize the aviation sector. The draft prepared by the Ministry of Culture, Tourism and Civil Aviation, will replace the Aviation Policy, 2006, once it is finalized. 

The government plans to establish a permanent and independent accident investigation mechanism, ending the long long-standing practice of forming commissions after every aviation accident. This move is expected to strengthen Nepal’s commitment to international aviation safety standards.

The draft includes a proposal to grant fifth freedom traffic rights to international carriers operating from Gautam Buddha International Airport of Rupandehi and Pokhara International Airport of Kaski.

These two international airports, which are built using foreign loans, have been struggling to get international flights. 

Fifth freedom rights authorize an airline to fly passengers and cargo between two foreign countries as part of a route that originates or ends in its own country. Bhutanese airlines are currently flying passengers between Kathmandu and New Delhi on flights that originate in Paro using the fifth freedom flights granted by Nepal.

The draft proposes stricter rules on aircraft imports. As per the draft, pressurized aircraft that have completed more than 50 percent of their economic design life or over 35,000 pressurization cycles cannot be imported into the country. This is a stricter standard than the current thresholds of 75 percent life and 45,000 cycles. For non-pressurized aircraft, the maximum age limit allowed for imports is 20 years. The draft also allows Nepali citizens and institutions to own private aircraft. Such aircraft, however, cannot be used for commercial purposes.

The policy also signals a shift toward more liberal and reciprocal air service agreements, with the aim of gradually adopting an open skies policy. Third-party code-sharing and transparent allocation of routes and flight frequencies based on the capacity of Nepali carriers are among the features aimed at enhancing competitiveness.

Similarly, the draft proposes to raise the ceiling for foreign investment in international airlines based in Nepal from 80 percent to 90 percent. However, the cap for domestic airlines will remain unchanged at 49 percent. In addition, the government plans to provide land at non-operational airports to institutions engaged in aircraft maintenance, pilot training, or aircraft design and manufacturing.

To support aviation training, the draft offers tax exemptions for flying schools during their first three years of operation. It also proposes a co-investment model involving federal, provincial, and local governments for new airport construction. However, new airports will be approved only if their long-term operational viability can be ensured.

The price of gold has increased by Rs 300 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 192, 300 per tola today.

Similarly, the price of silver has increased by Rs 35 and is being traded at Rs 2, 175 per tola today.

Residential housing loans have shown sluggish growth despite banks and financial institutions (BFIs) prioritizing the sector and offering competitive rates. 

According to the latest data from the Nepal Rastra Bank, housing loans up to Rs 20m extended by commercial banks increased by just 4.07 percent over the past year, reflecting the broader slowdown in credit expansion and the economy.

Total housing loans under Rs 20m increased to Rs 325.36bn in mid-May 2025, up from Rs 312.63bn in mid-May last year. This reflects a low appetite for residential borrowing even though interest rates have dropped to some of the lowest levels yet.

Although banks are offering home loans at premiums of less than one percent above their base rates, credit disbursement has remained below expectations. Bankers say that although housing and real estate loans are a top priority, weak consumer confidence and sectoral distress have hindered credit uptake.

The Nepal Rastra Bank (NRB) has been adopting more flexible policies to boost lending in the real estate sector. The central bank last year reduced the risk weight on housing loans above Rs 5m to 125 percent through a monetary policy review. It allowed homebuyers to use up to 70 percent of their income for loan repayment—principal and interest combined. Before that, only 50 percent of a borrower’s income could be allocated for loan installment payments.

Bankers attribute the slowdown primarily to the ongoing economic downturn, which has dampened individual income and weakened borrowing capacity. “The majority of people can no longer verify stable income sources, making it difficult to qualify for new loans,” one banker said.

Among commercial banks, NIC Asia Bank has the highest exposure to residential housing loans with Rs 48.7bn invested in loans under Rs 20m. Global IME Bank was next with a total housing loan portfolio of Rs 39.94bn. Nepal SBI Bank has the lowest at Rs 2.42bn.

The real estate sector itself is going through a severe downturn, with banks failing to offload their non-banking assets despite publishing auction notices repeatedly. When borrowers default on loans, banks and financial institutions (BFIs) acquire the property pledged as collateral. Banks are supposed to sell off these properties at the earliest and recover their investment, but a slowdown in the real estate sector means banks are not finding buyers. This accumulation of non-banking assets is hitting bank profitability.

Malaysia Airlines continues to redefine the travel experience with its innovative Bonus Side Trip (BST) programme, offering international travellers the opportunity to explore Malaysia’s hidden gems at no extra fare.

Whether transiting through Kuala Lumpur or planning an extended stay, travellers can explore a second Malaysian destination effortlessly, experiencing more of the country’s cultural richness, natural landscapes, and authentic local hospitality.

Available to Malaysia Airlines’ international passengers who travel through Kuala Lumpur, BST offers a domestic return flight to one of seven selected Malaysian destinations at no extra fare. 

Travellers can choose to stop over in Langkawi, Penang, Johor Bahru, Kuantan, Alor Star, Kuala Terrengganu and Kota Bharu before continuing to the last leg of their journey. 

Unlike traditional stopover packages, BST is fully integrated into the ticket fare and booking journey, turning every international journey into a multi-destination Malaysian adventure.