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Following the completion of the United States’ foreign aid review under the Donald Trump administration, the Millennium Challenge Corporation (MCC) Nepal Compact has resumed work with “renewed momentum and shared commitment from both sides.”

This week, MCA Nepal signed two major contracts to advance its electricity transmission line projects. Deputy Vice-president of MCC John Wingle, who is currently visiting Nepal, has been in talks with government officials to address technical challenges, primarily related to land acquisition and forest clearance. These issues have slowed progress on transmission construction. Despite significant cuts to US foreign assistance, the Trump administration decided to continue MCC projects in Nepal, framing MCC support not as aid, but as an ‘investment to promote business growth and stability worldwide.’

In signing these contracts, Wingle reaffirmed the US commitment to shared priorities and Nepal’s development goals. “We are honored to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal and enhance regional power trade and integration.” From 2018 to 2022, MCC projects deeply polarized Nepali society, facing both strong support and open opposition, notably from China. Under the agreement, MCC projects must be completed within five years, but two years have already passed. Delays from the American side have raised the likelihood of deadline extensions.

In domestic politics, the Election Commission has decided that Ranjita Shrestha will remain chairperson of the Nagarik Unmukti Party, despite claims from rival leaders that she had been removed. The Commission said the rival faction failed to follow proper procedures to change the leadership. The party, founded by Resham Chaudhary, has been in turmoil over internal disputes. It has announced plans to withdraw support for the government but has yet to formally notify officials due to the ongoing feud.

Similarly, tensions within the Rastriya Prajatantra Party (RPP) escalated this week. On Aug 13, a clash broke out in Kathmandu between supporters of party chair Rajendra Lingden and those of his rival, Dhawal Shumsher Rana. The Rana faction has been openly criticizing Lingden ahead of the party’s upcoming general convention and is reportedly creating parallel structures nationwide, deepening internal divisions. Earlier this year, the RPP organized protests in Kathmandu and other districts calling for the restoration of monarchy.

The CPN (Unified Socialist) also faced internal strife after former Prime Minister Jhala Nath Khanal declared that the party’s split was a mistake and urged Chairman Madhav Kumar Nepal to step down. Following discussions, both leaders have agreed to minimize their differences and refrain from public criticism in line with party statutes.

Meanwhile, Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane’s attempt to secure release from judicial custody failed after the court denied bail. In his absence, the party remains embroiled in controversy and continues to obstruct Parliament over the visit visa scam. Lamichhane has requested to be transferred to Kathmandu, but the government has not acted despite a court clearance.

Inside the Nepali Congress (NC), efforts are underway to unseat Sher Bahadur Deuba as parliamentary party leader, led by Shekhar Koirala and Gagan Kumar Thapa. However, they lack the sufficient number of lawmakers supporting the proposition. This week, Prime Minister KP Sharma Oli said a senior NC leader privately confirmed the shortfall and reiterated his belief that the current coalition will continue until the 2027 national elections.

The NC has, however, resolved a dispute in Bagmati Province. Chief Minister Indra Bahadur Baniya secured a confidence vote after Deuba persuaded Bahadur Singh Lama to support him, reportedly promising ministerial positions to Lama’s allies.

Former President Bidya Devi Bhandari has continued low-profile political activities despite her party rescinding her membership. Reports suggest she is preparing to open a contact office to formalize her engagements. For years, she has used the Madan Bhandari Foundation as a platform, which prompted Prime Minister Oli to criticize its activities this week. Many leaders once close to Bhandari are now distancing themselves, fearing disciplinary action.

The CPN-UML is preparing for its statute convention, where key outcomes are already expected — no 70-year age limit and no two-term leadership cap. Next year’s leadership selection convention is anticipated to endorse Oli’s continuation. Party leaders have compared Oli’s leadership ambitions to those of India’s Narendra Modi and China’s Xi Jinping.

In the CPN (Maoist Center), Chairperson Pushpa Kamal Dahal indicated no imminent change in government, saying there were no plans to form or join a new coalition. Prime Minister Oli suggested Dahal made the statement after failing to alter the current alliance.

Beyond party politics, Ramhari Khatiwada, chair of the State Affairs and Good Governance Committee of Parliament, resigned this week, stating he had always served as an honest representative. He told the House session on Tuesday that he returned his official vehicle and benefits the day an error in the Civil Service Bill’s “cooling-off period” provision came to light.

Prominent Madhesi leader Anil Kumar Jha left the Loktantrik Samajbadi Party led by Mahanta Thakur and revived the Nepal Sadbhawana Party. In a separate development, the Nepal government endorsed the country’s first National Artificial Intelligence Policy (2025). The US, India and China have expressed interest in supporting Nepal’s AI initiatives, though governance frameworks are still being developed.

In the Madhes Province, monsoon rains have finally arrived, ending a prolonged drought and accelerating paddy transplantation. According to the Ministry of Agriculture and Livestock Development, planting has been completed on 77 percent of paddy fields in eight districts and could reach 80 percent this year. Officials warn, however, that delayed planting may reduce productivity.

Nepal has also waived climbing fees for 97 lesser-known mountains, ranging from 5,870 to 7,132 meters, located in Karnali and Sudurpaschim provinces. The move aims to attract climbers to new destinations, boost local economies and diversify Nepal’s mountaineering offerings.

Deputy Prime Ministers, ministers and Chief Secretary signed a Performance Agreement with Prime Minister KP Sharma Oli today for the tasks to be executed and achievements to be made during the current fiscal year on Thursday.

The Performance Agreement for the upcoming programs as well as the annual progress review of the ministry were signed and exchanged at the Office of the Prime Minister and Council of Ministers, Singha Durbar this afternoon.

The practice of signing Performance Agreement began during Prime Minister Oli's previous term to complete the infrastructure construction and service delivery improvements within the specified time frame to fulfill the national aspiration of 'Prosperous Nepal, Happy Nepali'.

After the ministers sign the agreement with the Prime Minister, the ministers will have to sign the Performance Agreement with the concerned secretaries.

Pakistan Embassy in Kathmandu has organized a flag hoisting ceremony to mark the 79^th Independence Day of Pakistan.

According to a statement issued by Embassy, Pakistani community, Nepali friends and Embassy officials with their families attended the ceremony. This year the Independence Day was celebrated with the zeal of victory in “Marka-e-Haq, Embassy said in the statement.

In his message, Asif Ali Zardari, President of Pakistan, said that Independence Day is a reminder of the courage, unity, and sacrifices that led to the creation of Pakistan.  Prime Minister of Pakistan Muhammad Shahbaz Sharif said that the past 78 years tell a tale of resilience, strong faith and a hope of a bright future when as a nation, the countrymen braved several difficult challenges.

Abrar H Hashmi, Ambassador of Pakistan to Nepal paid tribute to the historic struggle of 1947 and the sacrifices of the nation’s forefathers. He specifically praised the role of leadership and the Armed Forces of Pakistan in thwarting Indian aggression in the recent Marka-e-Haq.

The Ambassador reaffirmed Pakistan’s commitment to peace, progress and that nation will stand together in the face of any challenge.  While celebrating the victory in “Marka-e-Haq”, a solemn prayer was also offered for the martyrs who laid lives in the struggle leading to preservation of ‘Azadi”.

Prime Minister KP Sharma Oli has said that Nepal's high-level participation in the Third United Nations Conference on Landlocked Developing Countries (LLDCs) in Awaza city of Turkmenistan reflected our serious concerns towards the challenges facing LLDCs.

Taking time out at today's meeting of the House of Representatives, PM Oli briefed about the Nepali delegation's visit to the conference which was held from August 5-7.

Oli appraised, "Nepal has raised voice in the interest of the landlocked developing countries in the international forum. Nepal's participation and address in the conference's major sessions and thematic roundtable had not only enhanced Nepal's international image but also conveyed the message that Nepal could also assume the leadership role."

The PM expressed his confidence that the formal and informal addresses and bilateral meetings during the conference have further strengthened Nepal's relations with its friendly nations and contributed to consolidate cooperation between Nepal and the United Nations.

Stating that the conference was successful in identifying the ways and means to address the challenges like transit related inefficiencies facing landlocked countries like Nepal and endorsing the Awaza Program of Action, PM Oli shared that the participants in the conference affirmed their commitment to fulfill the LLDCs' aspirations for development. 

The conference was attended by representatives of around 100 countries including the Head of the States, Head of the Governments, General-Secretary of the United Nations and President of the United Nations' 79th General Assembly.

PM Oli further informed the House that he addressed the plenary of the conference as the Chair of the group of the least developed countries and on the behalf of Nepal and shed lights on the challenges faced by LLDCs.

According to him, his addresses were focused on raising issues facing the LLDCs such as lack of infrastructures, limited market access, dependence on primary-products export, high transit costs, low foreign investment and adverse impacts of climate change. 

"I emphasized the need to enhance mutual cooperation and partnership among the LLDCs and called on the development partners for increased support to resolve these issues" Oli mentioned, recalling his address to the high-level conference.

"In my address as the Prime Minister of Nepal, I highlighted Nepal's efforts towards promotion of cross-border connectivity through development of climate-resilient infrastructures, expansion of highways and railways, construction of trade corridors and green energy corridors. I also urged neighbouring countries, development partners and donor agencies to provide additional support towards our journey," said Oli.

Oli, in the inaugural of the high-level thematic roundtable themed 'Seizing the Transformative Potential of Trade, Trade Facilitation and Regional Integration for LLDCs' which he co-chaired, highlighted the challenges LLDCs are facing due to lack of direct sea access and high transport costs. 

He said that he pressed for effective and concrete actions to improve the living standard of around 600 million people in these countries.

While addressing another thematic roundtable themed 'Structural Transformation, Diversification and Science, Technology and Innovation (STI) as Drivers of Prosperity in LLDCs' which he co-chaired, Oli urged the LLDCs to leverage STI for increasing productivity, mobilizing resources, creating employment opportunism and increasing integration into global value chains to bring about structural transformation in these countries.

In another roundtable titled 'Enhancing adaptive capacity, strengthening resilience and addressing vulnerability to climate change', Oli pointed out the need to increase LDDCs' access to climate funds, develop effective adaptation measures, utilize the Loss and Found Fun, build capacity and facilitate technology transfer.

Likewise, in another thematic roundtable themed 'Building sustainable infrastructure, strengthening connectivity and promoting unfettered transit systems for LDDCs, Oli underlined the importance of strategic partnership among transit countries, development partners and international communities for the sustainable development of the LLDCs.

He saw the need for innovative financial mechanisms, technology transfer and capacity building programs tailored to LLDCs specific requirements.

Furthermore, the Head of the Government apprised the House that he delivered his address as a key speaker in the high-level roundtable sessions such as 'Glacial Melt and Beyond: Unraveling the Climate Challenge impacting LLDCs' and 'Promoting regional security and cooperation through enhanced trade and transport connectivity'.

PM Oli also notified about the bilateral meeting with President of Turkmenistan Serdar Berdimuhamedov and other dignitaries on the sidelines of the conference.