AGP Executive Report

Gas Supply Transparency: Nepal’s Industry Minister Gauri Kumari Yadav says an online gas tracking system is being built, with gas details shared via Google Forms, aiming for clearer distribution and faster supply. Power for Industry: Madhesh Province gets a boost as the energy ministry pushes transmission lines and substations, including progress on the Dhalkebar–Bal ganga 132 KV line, to strengthen electricity reliability for industrial demand. Mobility & Auto Sector: NAIMA Nepal Mobility Expo 2026 opened in Kathmandu at Bhrikutimandap, featuring 53 brands and 40+ new vehicle launches, while officials flagged a new Transport Management Act to improve safety and organisation. Cybercrime Response: Nepal Police plans an Anti-Cyber Scam Centre and integrated command centres as cyber complaints rise, with 20,526 cases recorded in FY 2025/26. Labour Rights: Nepal ratified two ILO instruments on forced labour and labour inspection, strengthening protections and workplace oversight. Agriculture & Rural Industry: Sugarcane farmers in Sarlahi demand an unpaid Rs 35/quintal subsidy from two years ago, while the government’s chhurpi push targets export value and rural dairy-linked jobs. India-Nepal Development Push: India will grant NPR 803 million for eight community projects across education, health and agriculture, including digitalisation at BPKIHS and cold storage in Syangja.

Nepal-India Development Push: India has pledged over NPR 803 million for eight high-impact projects in Nepal, spanning digitalisation of BPKIHS, agriculture collection and livestock centres, and new campus and hospital works across Sunsari, Bhojpur, Dhading, Morang and Dailekh. Telecom Overhaul: Nepal’s MoCIT released a concept paper to replace the old Telecommunications Act, 2053, aiming to modernise governance and service quality for 5G-era needs, with a draft expected in Parliament in FY 2083/84. 5G Roadmap: The Nepal Telecommunications Authority published a draft “Road to 5G” plan targeting 5G nationwide by 2035, with speed benchmarks rising from 20 Mbps by 2027 to 100 Mbps in urban areas by 2030. Mobility Expo Kickoff: NAIMA’s NAIMA Nepal Mobility Expo 2026 opened in Kathmandu with 53 brands and dozens of new launches, while industry leaders urged stable EV policy, better regulation, and action against counterfeit parts. LPG Supply Pressure: Despite higher LPG imports, consumers still face shortages and queues, with reports pointing to deeper supply-chain and cylinder management issues. Tax Incentive Winners: Nepal’s Inland Revenue Department published winners of the taxpayer incentive gift program, including a bumper winner consumer award. Marketing Awards: Five Nepali agencies won 17 honours at Flame Awards Asia 2026 in New Delhi, highlighting growing strength in Nepal’s advertising and campaign industry.

LPG Supply Shock: Nepal’s cooking gas market is seeing “artificial shortage” despite higher imports, with hoarding and delayed cylinder system changes blamed as officials and industry push for smoother distribution. Automobile & Mobility Push: Nepal Chamber of Commerce and Confederation of Nepalese Industries leaders backed the NAIMA Mobility Expo, calling mobility a key GDP driver and urging stable policies plus higher capital spending. Transport Policy Update: Department of Transport Management says a revised Transport Management Act and National Transport Policy 2083 will push digital mobility, ride-sharing regulation, EV conversion support, and vehicle import standards. Chhurpi Export Strategy: Government unveiled a five-year plan to scale dog-chew (chhurpi) production and exports by strengthening milk supply, quality, livestock insurance, and disease control. Construction Sector Pressure: Lawmakers warned construction is stalling over bitumen and fuel price hikes, contract and payment delays, and legal hurdles that freeze projects and raise costs. Liquidity Puzzle: Nepal’s banks are awash with excess liquidity while credit growth lags, with remittance inflows cited as a key driver of idle funds. Agri Losses from Wildlife: A study estimates monkeys alone cause about Rs 50 million annual crop losses in mid-hills, hitting maize hardest. Egg Support Price: Egg support prices were raised as demand returns after bird flu subsided, though farmers still struggle to recover costs. HoR Agenda: House of Representatives meeting scheduled to take up a Mine and Minerals Bill proposal and committee discussions on digital economy and other governance issues.

Telecom Modernization: Nepal’s NTA has published a draft “Road to 5G” mobile broadband enhancement plan, aiming for 20 Mbps minimum speeds by 2027 and a 3G shutdown within four months, with 5G rollout options (SA/NSA) and planned frequency auctions. Investment Climate: Finance Minister Swarnim Wagle met 20 large multinational taxpayers, urging more investment, new products and technologies, and promising a “response desk” to address concerns and protect legally made assets. Construction Sector Pressure: Lawmakers flagged stalled infrastructure work from bitumen and fuel price hikes, budget freezing over capital expenditure, and delays caused by court and vigilance processes—calling for faster payments and clearer rules. Industrial Revival Watch: A task force has been formed to study reopening Biratnagar Jute Mill, with a one-month report on financial, technical and legal options. Energy & Consumer Impact: RSP MP Lima Adhikari Acharya urged urgent action on cooking gas shortages, pushing for faster electric cooking support. Environment & Utilities: Guheshwori Wastewater Treatment Plant is processing 32.4 million litres daily, while ministers renewed focus on community forest-based enterprises and green jobs. Diplomacy for Trade: Nepal’s PM Balendra Shah met India’s envoy Naveen Srivastava to deepen bilateral cooperation, as India also reiterated “Neighbourhood First” talks with Nepal and Bangladesh. Governance & Records: Foreign Minister Shishir Khanal said the government lacks clarity on whether Nepal holds original copies of the 1816 and 1950 treaties. Legal Update: Special Court released former finance minister Gyanendra Bahadur Karki on Rs 1.5 million bail in the Pokhara airport corruption case.

Textile Industry Watch: CPN-UML’s Shankar Pokharel questioned the repeated “drama” of reopening Hetauda’s closed textile plant, urging a sustainable plan with modern technology, business capacity and skilled management instead of political stunts. Budget & Investment Dialogue: Finance Minister Dr. Swarnim Wagle is holding talks with 20 large multinational taxpayers on budget implementation, investment expansion, job creation and profit repatriation—following earlier meetings with 33 industrial houses and top bankers. Infrastructure Delays: A study warns Nepal’s “national pride” projects could take 10 more years if progress stays around 55% overall, citing issues like budget assurance, land acquisition, tree felling and limited working hours. Energy & Utilities: Guheshwori Wastewater Treatment Plant is processing 32.4 million litres daily, while Humla’s grid connection is delayed by a year to March 2027 due to slow contractor work and monsoon risks. LPG Market Pressure: LPG shortages are resurfacing despite steady imports; officials point to distribution and demand spikes, while Mahottari’s administration reports surprise checks found no hoarding or black marketing. Transport & Construction: Nepal’s first tied-arch motorable bridge is completed at Ramdi over the Kali Gandaki, and Jhapa blacktopped 51 km of roads in the last fiscal year. Bilateral Industry Links: India’s envoy Naveen Srivastava met PM Balendra Shah to push development cooperation across infrastructure, connectivity, energy, agriculture and healthcare. SME Insurance: A new insurance scheme for small businesses starts this fiscal year to cover income loss from disruptions like injury or hospitalisation. EV Market Friction: Traders warn EV growth is hit by policy uncertainty on taxes, weak infrastructure and a grey spare-parts market.

LPG Crackdown & Supply Watch: Nepal is stepping up monitoring to curb cooking gas black marketing, with district administrations and police inspecting dealers in places like Dhankuta and Rasuwa, while the Nepal LP Gas Industry Association urges people not to hoard cylinders as imports from India rise. Industry & Power Payments: NEA’s Sankhuwasabha branch collected Rs 12 million in dues in a year, including from hydropower projects, crusher industries and government offices. Agribusiness Exports: Salyan exported agricultural and livestock products worth Rs 2.24 billion in FY 2025-26, benefiting about 54,000 farming households through commercial farming and animal husbandry. ICT Policy Push (Bangladesh, regional signal): PM adviser Rehan Asif Asad outlined five ICT/telecom priorities—tax reform, better connectivity, digital public infrastructure, AI-ready talent, and electronics manufacturing—highlighting the region’s push toward tech-led industry. Trade Linkages: A Nepal trade delegation to Oman met officials and retailers, aiming to expand long-term partnerships and distribution for Nepali products. Sports Infrastructure: Karnali Province Stadium’s new swimming pool construction is completed, supporting training and future competitions.

Energy & Trade Policy: Nepal’s National Planning Commission Vice Chairman Dr. Gunakar Bhatta says high growth needs both policy intervention and investment expansion, plus skills, technology, and better productivity. Hydropower Debate: An opinion piece challenges five common myths, arguing hydropower’s value goes beyond electricity exports into domestic investment, jobs, and capital markets. Road Safety & Urban Works: Kathmandu Valley Traffic Police Chief pushes a “faceless” tech-friendly traffic system and road-safety education, while another feature backs trenchless methods to cut repeated road digging and monsoon damage. LPG Supply Crackdown: Kathmandu Valley will deploy plainclothes police at gas depots to curb black marketing and artificial shortages; meanwhile Nepal Oil Corporation says LP gas supply is gradually normalizing after higher imports and smoother distribution. Local Gas Distribution: Kaski’s administration plans to distribute 10,000 cylinders in Pokhara today, including sales via grocery stores to reduce queues. Agriculture: Paddy plantation has reached 96% of target area after improved monsoon rains. Industry & Exports: FEEN and an Oman NRN club sign an MoU to expand “Made in Nepal” products in Oman. Automotive Sector: NAIMA’s Second Mobility Expo (55 brands) is set for Aug 11–16 in Kathmandu. Tourism & Services: Dhorpatan hunting reserve reports 13,000 more tourists year-on-year, boosting entry-fee and local revenue. Aviation Regulation (Regional): Indian pilots’ body urges an autonomous civil aviation authority, citing Nepal and other countries’ independent regulators. Weather Risk: Monsoon forecasts warn of moderate to heavy rain and possible snowfall in mountainous areas.

LPG Supply Crunch: Nepal’s Industry Minister Gauri Kumari Yadav inspected LPG industries and the Teku distribution depot, directing firms to prioritize students, daily wage workers and distressed consumers while Nepal Oil Corporation said imports are fine but distribution issues are driving market complaints. Industrial Revival Push: PM Balendra Shah highlighted early gains from reforms in state-linked firms, citing Nepal Drug Limited’s rising sales and production targets, as the government tries to revive ailing national industries. Fertilizer Distribution: Agricultural Inputs Company Limited (Dhanusha) began the second phase of chemical fertilizer distribution (DAP and urea) to Dhanusha and Mahottari as paddy transplanting nears completion. Road & Infrastructure Momentum: Infrastructure Minister Sunil Lamsal said the long-delayed Saljhandi–Sandhikharka–Dhorpatan road construction is expected to pick up pace after years of slow blacktopping progress. Entrepreneurship & Exports: 20 Nepali entrepreneurs completed the US Embassy Capstone Accelerator in Kathmandu, pitching for investment readiness and export potential. Aviation Policy Debate (India): India’s pilots’ body renewed calls to replace DGCA with an autonomous Civil Aviation Authority, arguing the current regulator can’t keep up with sector growth.

US Embassy & Entrepreneurship: The US Embassy-backed Capstone Accelerator Program wrapped up in Kathmandu, selecting 20 entrepreneurs from 200+ applicants and running a 3-day residential push on investment readiness, AI integration, export potential and strategic communication, ending with investor pitches and a Main Street showcase. State Industry Revival: PM Balendra Shah says government industries are turning around, citing gains at Nepal Drug Limited (GMP-linked sales and profit), test production at Hetauda Textile, and improved performance at Nepal Airlines and Dairy Development Corporation. Energy & Consumer Impact: Industry Minister Gauri Kumari Yadav inspected Nepal Gas Industry (Balaju) and the Teku depot, directing gas distribution with a focus on students in Kirtipur; separate coverage also flags ongoing LPG shortage pressure and calls for better supply and distribution. Business Climate Concern: Police raids and arrests have sparked fear in the private sector, with business groups warning enforcement tactics are discouraging investment. Trade & Regional Links: Oman-Nepal MoU aims to expand “Made in Nepal” products in Oman via exhibitions and buyer connections. Construction Procurement: Babarai Irrigation Project sees strong contractor interest after an “average bid” system reduced pressure to underbid, improving confidence in standard-rate delivery. Market Watch: Nepse fell 35 points (down Rs70bn in value) as selling pressure hit major sectors. Weather/Logistics: Monsoon remains active with heavy rain risk; Mechi Highway’s Ilam-Rajduwali section is blocked for a month after landslides, disrupting road connectivity.

Electricity Exports Boost: Nepal Electricity Authority logged NRs 29.32 billion from power exports to India and Bangladesh in FY 2025/26, up 67.96% year-on-year, with imports down and surplus rising—an industry win that signals surplus power is finding buyers. Telecom Quality Push: Nepal Telecommunications Authority issued 8 directives to telcos on mobile service quality, 4G improvements, phased 5G rollout from major cities, AI-based 24/7 complaint handling, spectrum use, cybersecurity checks, and tariff transparency. LPG Supply Management: Industry Minister Gauri Kumari Yadav told lawmakers the government is tightening market monitoring, warning against hoarding, and working with India for higher LPG quotas while pushing cylinder tracking. Parliament Watch: Four bills were tabled in the HoR, including the Mines and Minerals Bill; MPs also pressed for clarity on the Dhalkebar national trauma centre plan and broader development coordination. Infrastructure Bottlenecks: MPs flagged poor inter-ministry coordination and delays in road projects, with pole relocation repeatedly cited as a major obstacle. Food Prices Pressure: Global food prices hit a three-year high in July as cereal, wheat, vegetable oil, and sugar costs rose amid weather and geopolitical risks. Tax Incentive Lottery: Nepal’s taxpayer incentive draw began—Rs 250 purchases can win up to Rs 1 million, with winners announced by the Inland Revenue Department.

Economic Diplomacy: Foreign Minister Shisir Khanal says economic diplomacy is at the heart of Nepal’s foreign policy, aiming to boost trade, investment, jobs, tourism and technology through a “dynamic bridge” role between China and South Asia. Roads & Power Grid Bottlenecks: Nepal Electricity Authority is relocating poles for road expansion (80–90% done), but MPs and the Department of Roads warn delays and poor coordination are still blocking projects and inflating state losses. Electricity Access Push: A parliamentary committee orders faster electricity expansion to remote areas, with integrated planning so poles and structures are relocated before road contracts lock in. Telecom Regulation: Nepal Telecommunications Authority issues an 8-point directive to mobile operators on network reliability, complaint handling, 4G/5G rollout plans and consumer protection. Tax & Consumer Incentives: Government launches the Taxpayer Incentive Gift Program; first Shrawan bumper draw winners include a Kanchanpur shopper taking Rs 1 million, pushing invoice-based, digital billing culture. LPG Supply Watch: Nepal Oil Corporation says LPG tanker inflow is steady via Birgunj despite reports of shortages, while monitoring continues amid public concern. Trade Deficit Snapshot: Nepal recorded a trade deficit with 128 partners in FY 2025/26 as imports outpaced exports, with India and China driving most of the gap. Construction Uncertainty: Contractors warn Nepal’s lack of approved procedures for price adjustment in extraordinary circumstances is leaving projects at risk as global bitumen and fuel costs rise. Data Privacy Risk: TU admit card QR-code sharing exposed student personal data, highlighting weak privacy practices in education institutions. Cannabis Law (Gandaki): Gandaki authenticates a regulated cannabis law for medicinal and industrial use, setting up licensing but requiring further implementation rules.

Agriculture & Supply Chain: Nepal’s agriculture ministers met farmers from Nuwakot, Dhading and Kavrepalanchok to discuss market management, fertilizer supply and infrastructure, with industry officials flagging a mismatch where some factories lack produce while farmers struggle to sell. Power Regulation: The Electricity Regulatory Commission issued a new directive to set electricity tariffs on a cost-based, transparent method, replacing the older tariff directive and capping returns by segment. Transport Planning: Kathmandu Valley’s long-term transport master plan targets safer, organized public transport by 2050, including new bridges, parking, cycling lanes and intersection restructuring. Infrastructure Finance: Finance Minister Swarnim Wagle outlined reforms to boost capital expenditure capacity to 80–100% by speeding fund transfers, using the new procurement act and bundling large contracts via a multi-year framework. Road Law Update: A new Road Bill (2083) is set to replace the old Road Act, introducing three-tier road classification and clearer responsibilities. LPG & Consumer Relief: Nepal Oil Corporation formed a Rapid Response Team to fix LPG distribution issues; monitoring also intensified at Janakpur gas dealers amid shortages. Private Sector & Governance: Nepal Chamber of Commerce and CNI urged more private-sector-friendly public bodies and transparent auditing, warning retrospective tax and audit approaches can hurt investor confidence. Hydropower Investment Signal: ReNew is reportedly exploring sale of its hydropower unit for about Rs 1,000 crore as part of asset recycling. Border Tensions: Clashes and rising tensions in Susta followed alleged embankment interference, with FIRs and investigations underway.

Education & Health Infrastructure: India laid foundation stones for two new secondary school buildings in Namobuddha, Kavrepalanchowk (over NPR 11 crore). In Sudurpaschim, four provincial hospitals were approved as teaching hospitals for MDCUHS. Private Sector & Governance: Nepal Chamber of Commerce and CNI leaders urged Auditor General bodies to be more private sector-friendly, warning that retrospective tax and audit approaches can dent investor confidence; they also pushed for transparent auditing. Energy & Power Projects: Nepal’s transmission grid company moved ahead with the 400kv Bajhang–Banlek line (2,500 MW target) and BP Koirala Memorial Cancer Hospital began preparations for a bone marrow transplant unit with Chinese support. Transport & Roads: Kathmandu Valley will implement a long-term transport master plan; Narayangadh–Butwal road upgrade is easing travel to about two hours. LPG & Industrial Supply: Janakpur dealers are under tighter monitoring amid LPG shortage reports, while Nepal Oil Corporation leadership and monitoring teams push distribution and crack down on hoarding. Business & Jobs: Employment Minister says 100k jobs will be created this year; Finance Minister Wagle continues private-sector dialogues on budget implementation. Security & Digital Risks: Border tension in Susta escalated after alleged embankment extension and stone-pelting at an SSB patrol; Nepal also detected 135 compromised nepal.gov.np email accounts, raising phishing concerns.

Jobs & Skills: Nepal’s Employment Minister Ramji Yadav says the government plans to create 100,000 jobs this year, backed by 12 action plans including a “Green Job Mission,” plus steps to rescue Nepalis stranded abroad and curb “free visa/ticket” fraud. Energy & Industry: Spark Hydroelectric has begun tunnel blasting for the 128MW Tamor-Mechi Hydropower project, while Nepal Oil Corporation formed a rapid response team to fix LPG distribution issues amid demand spikes. Trade & Investment: Nepal and Oman business leaders met to explore partnerships in food security, water, beverages, handicrafts and traditional industries; Foreign Minister Shisir Khanal also pushed for deeper Nepal–South Korea connectivity in trade, tourism, education and technology. Manufacturing & Local Industry: A shoe industry dialogue highlights export growth and calls for solving policy bottlenecks, smuggling and manpower gaps; Samsung expanded its “Smart Plaza” footprint in Kathmandu. Transport & Safety: The government drafted a National Road Safety Act (2083) with stricter standards from vehicle import to road construction; mechanical engineers raised staffing and career progression grievances. Governance & Compliance: Finance Minister Swarnim Wagle urged NRB to act as a partner in economic transformation; Ministry of Law published a new staffing structure for 105 employees; Nepal’s ISP dues dispute is moving forward. Infrastructure & Projects: Road Division Jumla cancelled a bridge contract over serious delays and non-compliance. Legal & Business Risks: A Special Court granted bail to former Tourism Secretary Maheshwor Neupane in the Pokhara airport corruption case. Regional Crime: Malaysian raids broke a passport forgery syndicate, seizing 119 forged passports including from Nepal.

ISP Arrears Resolution: Nepal’s Ministry of Information and Communications has started talks to settle long-standing disputes over internet service provider dues, stressing that legally required taxes and fees must be deposited while unjust charges can be reviewed. Consumer Prices & Market Action: Rising prices of essentials and cooking gas are being blamed on imports, crude oil, demand spikes and transport costs, but authorities are again urged to crack down on artificial shortages and middlemen. LP Gas Supply Watch: The Ministry of Industry, Commerce and Supplies says LP gas supply should normalize within days, with tighter monitoring and warnings of action against hoarding and black marketing. Power Infrastructure: NEA has charged the new 33/11 kV Ghyampesal substation in Gorkha, expected to improve reliability for about 15,000 people. Industrial Compliance: Balaju Industrial Area Office moves against Continental Component Services over alleged contract violations, including non-aligned activities inside the industrial area. Agri Policy Push: The government issued National Agriculture Policy, 2083, aiming for modern, commercial, competitive farming, food safety/sovereignty, import substitution and agro-industrialization. Jute Decline: Eastern jute cultivation is shrinking, driving higher raw jute imports from India and Bangladesh as farmers shift to paddy and other crops. Business Diplomacy: Oman–Nepal Business Forum in Muscat explored partnerships in trade, food security, water and traditional industries. Mountaineering Loss: Nepal’s mountaineering community mourns Broad Peak avalanche deaths, including Nirmal Purja and other Sherpas, highlighting the sector’s global profile. AI in Tourism: Busan’s tourism startups are using AI for safety and digital services, including a Nepal-linked Himalayan trekking pilot with WATOSS.

LPG Supply Crunch in Focus: Nepal Oil Corporation says there’s no cooking gas shortage, but Prime Minister’s Office and lawmakers are pushing tighter distribution, including cylinder mapping and a plan to import 50,000+ metric tons monthly for three months as festival demand nears. Parliament Pushes Accountability: The Industry, Commerce and Consumer Interest Committee questioned NOC allowances and ordered digital tracking (QR/barcode) to curb artificial shortages. Energy & Waste Management: KMC and AEPC signed an MoU to revive the long-idle Teku waste-to-energy project, targeting restart within two months. Hydropower Share Rules: IPPAN urged hydropower firms to offer shares to project-affected locals at face value, not at a premium. Water Crisis in Madhesh: Drought and falling groundwater have left many wells and hand pumps dry, with MPs calling for emergency relief and long-term recharge. Agriculture Update: Paddy transplantation is ahead of last year, reaching 92% of target nationwide. Transport/Trade Shock: Northern border disruptions are slowing Nepal’s EV boom, with EV imports down 24% and model launches at risk. Business Climate: Finance Minister Wagle says a clear direction for economic transformation is set, with banks urged to expand credit to manufacturing. Tourism: Nepal saw marginal growth in foreign arrivals in July, with China up sharply but overall growth modest. Industry Watch: India’s manufacturing PMI eased to near a five-year low, signaling slower momentum for regional supply chains.