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Escalating Hydropower Dispute in Sankhuwa-Sisuwa Corridor Puts Investment Security at Risk
A significant and escalating conflict has erupted in Nepal's Sankhuwa-Sisuwa river corridor, pitting local communities against the developers of four crucial hydropower projects. This dispute, centered on environmental impact, ancestral land rights, and potential displacement, has now reached the Ministry of Energy, Water Resources, and Irrigation, raising serious concerns about investment security and the future of hydropower development in the region. The corridor is home to several vital energy initiatives: Gurans Hydro Limited's 47 MW Sankhuwa Khola project, Happy Energy Limited's 40.1 MW Upper Sankhuwa Khola, Matribhumi Hydropower Development Company's 16.5 MW Sisuwa Khola, and Madhya Sankhuwasabha Hydropower Company's 40.8 MW Madhya Sankhuwa Khola project. These projects collectively represent a substantial investment in Nepal's energy sector, crucial for meeting the nation's growing power demands and achieving its renewable energy targets. Local residents express profound apprehension regarding the potential adverse effects of these projects on their ancestral lands, livelihoods, the fragile environment, and cultural heritage. They argue that the Sankhuwa Khola, flowing through a narrow, landslide-prone gorge, and the Sisuwa Khola, traversing flood and landslide-vulnerable terrain, make the corridor geographically sensitive. Consequently, the construction of tunnels, blasting activities, dam building, and other infrastructure could exacerbate existing risks, leading to increased landslides, floods, and displacement. The communities are demanding a comprehensive, joint, and long-term geological and environmental impact study for all four projects, asserting that individual Environmental Impact Assessments (EIAs) are insufficient to address the cumulative risks. Their primary concerns revolve around ensuring the safety of settlements, mitigating landslides and floods, preventing environmental degradation, and protecting their ancestral homes. In an effort to mediate the conflict, a multi-party meeting was convened at the District Administration Office in Khandbari. This meeting, attended by 61 representatives including local government officials, security personnel, project developers, and affected residents, led to the formation of an 11-member study committee. Chaired by Surendra Rai, the committee was tasked with investigating issues such as compensation, environmental concerns, and potential geological risks, with a mandate to submit its report within 15 days. Developers claim that during this meeting, locals agreed not to obstruct project work while the study was underway. However, this agreement has been vehemently rejected by the affected communities, who assert that they were coerced into the decision under administrative pressure. They maintain that the agreement disregards their fundamental rights to protect their cultural identity and ancestral lands, rendering the local resolution efforts ineffective. The dispute has since escalated to the highest levels, with affected locals directly appealing to the Ministry of Energy, Water Resources, and Irrigation, demanding the cancellation of the projects. This move has drawn strong criticism from the developers, particularly after Energy Minister Biraj Bhakta Shrestha reportedly endorsed the locals' memorandum. Developers argue that such ministerial intervention, especially while the local study committee's report is still pending, is premature and undermines established administrative and technical processes. They emphasize that any conclusion should only be reached after a thorough review of the District Administration's decision, the committee's report, technical recommendations from the Electricity Development Department, and comprehensive environmental assessments. The private sector has voiced significant apprehension regarding the potential ramifications of this dispute. Arjun Prasad Gautam, a director at Peoples Hydropower Company Limited, highlighted that moving towards project cancellation without completing due administrative and technical processes poses a direct threat to the security of private investment in Nepal's hydropower sector. Similarly, Uttam Bhlo Lamichhane, Senior Vice President of the Independent Power Producers' Association, Nepal (IPPAN), stressed the importance of adhering to legal and technical procedures for resolving local disputes. He warned that abruptly halting ongoing projects, which often involve substantial investments from banks and financial institutions, could trigger significant financial risks, potentially leading to loan recovery challenges and broader instability within the financial sector. Developers collectively argue that decisions influenced by administrative or political pressure, bypassing established licensing, environmental approval, and Power Purchase Agreement (PPA) processes, could severely erode investor confidence. The ripple effect of such actions could extend beyond individual projects, impacting the overall investment climate for infrastructure development in Nepal. Furthermore, they caution that if legal recourse is sought against state decisions, it could lead to substantial compensation liabilities for the government. Conversely, the affected communities steadfastly maintain that the protection of citizens' lives, property, environment, cultural rights, and ancestral lands must take precedence over investment security. The Sankhuwa-Sisuwa corridor dispute represents a critical juncture for Nepal's hydropower sector. It underscores the delicate balance between national development aspirations, private investment interests, and the fundamental rights and environmental concerns of local communities. A resolution that respects both investment security and community well-being, achieved through transparent, legally sound, and technically informed processes, is imperative to ensure sustainable development and maintain investor confidence in Nepal's promising energy future.
Royal Tulip Chitwan Achieves Five-Star Deluxe Status, Prepares for Landmark IPO
Nepal's burgeoning hospitality sector is set to welcome a significant new investment opportunity as Royal Tulip Chitwan, a luxurious resort nestled in the heart of Sauraha, has officially been granted 'Five-Star Deluxe' status by the Department of Tourism, Government of Nepal. This prestigious recognition not only elevates the resort's standing but also paves the way for its operator, KTM Hospitality Limited, to launch an Initial Public Offering (IPO), inviting public participation in its promising future. The 'Five-Star Deluxe' classification is a testament to Royal Tulip Chitwan's adherence to stringent international standards across various parameters, including physical infrastructure, service quality, safety protocols, and operational efficiency. A thorough on-site inspection by the Department of Tourism confirmed that the resort meets all specified criteria, making it only the fourth hotel or resort in Nepal to achieve this distinguished level of accreditation. This recognition is a significant milestone, underscoring the growing sophistication and quality within Nepal's tourism infrastructure, particularly in regions like Chitwan, renowned for its wildlife and natural beauty. Operated by KTM Hospitality Limited, Royal Tulip Chitwan functions under a strategic management agreement with the globally recognized Louvre Hotels Group, specifically under its premium Royal Tulip brand. This international partnership ensures world-class service delivery and operational excellence, aligning the resort with global hospitality benchmarks. The resort, which commenced its soft opening in July 2025 and became fully operational by mid-December, is strategically located near the serene Rapti River, flanked by the Janakauli and Kumroj Community Forests. Spanning an expansive 4.12 acres, the property boasts 65 elegantly appointed modern rooms, designed to offer guests an unparalleled experience of comfort and luxury amidst nature. Beyond its luxurious accommodations, Royal Tulip Chitwan offers a comprehensive suite of amenities tailored for discerning travelers. These include a fine-dining restaurant, a refreshing swimming pool, a state-of-the-art gym, a health club, and even a helipad for exclusive access. A unique highlight is its revolving restaurant, offering panoramic views of the surrounding landscape. Furthermore, the resort introduces innovative entertainment concepts to Nepal, featuring the nation's first 'Tanavibar' and a 'Sportsbar' designed for late-night enjoyment, catering to a diverse range of guest preferences. Emphasizing a deep connection to local heritage, the resort's construction extensively utilizes indigenous materials such as local wood for furniture, traditional stone and tiles, jute carpets, and local art and decorative elements, beautifully reflecting Nepali craftsmanship and cultural identity. In parallel with its operational achievements, KTM Hospitality Limited is actively progressing with its plans to issue ordinary shares to the public. The company has submitted an application to the Nepal Securities Board (SEBON) for the issuance of 1,550,000 units of shares, each with a face value of NPR 100, totaling NPR 155 million. This IPO initiative is a crucial step for the company to raise capital and allow broader public ownership. Care Rating Nepal has assigned a 'Double B Minus' rating to the company, providing potential investors with an independent assessment of its financial health and operational capabilities. With a total project cost estimated at approximately NPR 1.705 billion, the IPO is expected to support the company's ongoing growth and expansion strategies. KTM Hospitality Limited, which transitioned from a private to a public limited company on Ashar 25, 2081 (approximately July 9, 2024), operates under the visionary leadership of Rameshwor Shah, Chairman and CEO of KTM Group Holdings. The strategic location of Royal Tulip Chitwan, adjacent to the world-renowned Chitwan National Park, positions it as a prime destination for both domestic and international tourists. The 'Five-Star Deluxe' recognition, coupled with the upcoming IPO, is anticipated to significantly bolster Sauraha's appeal as a high-end international tourism hub, attracting more visitors and foreign exchange, and contributing substantially to Nepal's tourism economy. This development presents an exciting opportunity for investors to participate in a premium segment of Nepal's growing hospitality industry.
Supreme Court Issues Show-Cause Order in High-Stakes NEA Leadership Dispute
The Supreme Court of Nepal has issued a show-cause order in the ongoing legal battle concerning the executive directorship of the Nepal Electricity Authority (NEA), a development that could have significant implications for governance in state-owned enterprises. The order comes in response to a writ petition filed by Hitendra Dev Shakya, the former Executive Director, who is seeking reinstatement to his previous position. On Wednesday, a single bench presided over by Justice Kumar Regmi issued the show-cause order against the opposing parties and summoned both sides for a discussion regarding an interim order. This judicial intervention marks the latest chapter in a protracted dispute that has seen Shakya appointed, removed, reinstated, and then removed again from the helm of the nation's crucial power utility. Shakya was initially appointed as the Executive Director of NEA on Chaitra 11, 2081 BS (approximately March 2025). However, his tenure was cut short when the government removed him from the post in Ashoj 2082 BS (approximately September 2025). Challenging this decision, Shakya filed a writ petition with the Supreme Court, which subsequently ruled in his favor. On Mangsir 22, 2082 BS (approximately December 2025), the apex court ordered his reinstatement, allowing him to return to his duties as Executive Director. The situation took another turn in Baisakh 2083 BS (approximately April 2026) when the government introduced a special ordinance aimed at removing public officials from their posts. Based on the provisions of this new ordinance, Shakya was once again relieved of his duties. This move by the government highlighted its intent to assert control over key appointments, even if it meant navigating complex legal challenges. Shakya's latest petition to the Supreme Court argues that despite the special ordinance having since become inactive, he has not been reinstated to his former position. His appeal questions the legal validity and lasting impact of an ordinance that is no longer in effect. With the court now having ordered the registration of his writ, the bench is set to hear arguments regarding his demand for reinstatement and the legal ramifications of the ordinance's inactivity. This case is not merely about an individual's employment; it delves into fundamental questions of administrative law, the balance of power between the executive and the judiciary, and the stability of leadership in critical national institutions. For investors and market observers, the consistent leadership and operational stability of the NEA are paramount. Frequent changes at the top, especially those embroiled in legal battles, can disrupt long-term strategic planning, delay crucial infrastructure projects, and potentially impact the overall efficiency and financial health of the authority. Such instability can ripple through the economy, affecting power supply, industrial growth, and investor confidence in Nepal's energy sector. Adding another layer of complexity to the situation, the government has already appointed Dirghayukumar Shrestha as the new Executive Director of the Nepal Electricity Authority, and he has already assumed office. This raises questions about the potential outcomes should the Supreme Court rule in Shakya's favor, creating a scenario where two individuals might lay claim to the same executive position. The upcoming discussions and the Supreme Court's final ruling will be closely monitored by legal experts, public servants, and the investment community alike, as the decision could establish significant precedents for future governance practices within Nepal's vital state-owned enterprises.
Nepal's Transport Federation Issues Urgent Monsoon Travel Advisory; Stock Market Closure Noted
The Nepal National Federation of Transport Entrepreneurs (NNFTE) has issued a critical travel advisory, urging the public and its members to exercise extreme caution when undertaking journeys, particularly at night and over long distances. This directive, effective from Thursday until the upcoming Monday, Ashoj 12, underscores the heightened risks associated with the ongoing monsoon season. The Federation's appeal emphasizes the need to avoid non-essential long-distance travel during this period, prioritizing safety amidst potential natural calamities. In a formal statement, the NNFTE has mandated that all transport operators and passengers must diligently assess road conditions and prevailing weather forecasts before commencing any travel. This proactive measure aims to mitigate the dangers posed by incessant rainfall, which significantly increases the likelihood of floods, landslides, and other unforeseen disasters across Nepal's diverse and often challenging terrain. The Federation's call for vigilance is a direct response to the escalating risks that can severely disrupt transportation networks, endanger lives, and cause substantial economic losses. This advisory from the NNFTE is not an isolated incident but rather echoes a similar warning previously issued by the National Disaster Risk Reduction and Management Authority (NDRRMA). The convergence of these warnings from both governmental and private sector bodies highlights a unified concern regarding public safety during the peak monsoon season. Such coordinated efforts are crucial in a country like Nepal, where geographical vulnerabilities make it particularly susceptible to monsoon-related hazards. For investors, this signals potential disruptions in supply chains, logistics, and overall economic activity, particularly in sectors reliant on timely transportation of goods and services. The implications of such travel restrictions extend beyond immediate safety concerns. For businesses, especially those involved in manufacturing, retail, and tourism, these advisories can lead to significant operational challenges. Delays in the movement of raw materials and finished goods can impact production schedules and delivery timelines, potentially affecting quarterly earnings. The tourism sector, a vital contributor to Nepal's economy, often experiences a downturn during the monsoon due to difficult travel conditions and reduced accessibility to popular destinations. Investors with stakes in these sectors should closely monitor the duration and severity of such advisories, as they can influence short-to-medium term business performance. Furthermore, the advisory period also coincided with a specific market event: the closure of the Nepali stock market on Ashoj 5, Monday. While the reason for this particular closure is not detailed in the original snippet, its mention alongside the travel warning serves as a reminder for investors to stay informed about market holidays and their potential impact on trading activities. Such closures, whether due to public holidays, festivals, or other unforeseen circumstances, can affect liquidity and trading volumes, necessitating careful planning for portfolio management. Nepal's infrastructure, while continually improving, remains vulnerable to extreme weather events. The recurring nature of monsoon-induced disruptions necessitates robust disaster preparedness and resilient infrastructure development. For long-term investors, understanding these systemic risks is paramount. Companies that demonstrate strong contingency planning, diversified supply chains, and effective risk management strategies are better positioned to navigate such challenges. The NNFTE's warning, therefore, serves as a timely reminder for all stakeholders – from individual travelers to large corporations and investors – to prioritize safety and adapt strategies in response to the dynamic environmental conditions prevalent in Nepal during the monsoon season. This collective vigilance is essential not only for public safety but also for ensuring the stability and resilience of the national economy.
Minister Proposes Dedicated Hydropower IPO Quota for Security Personnel
In a significant move aimed at recognizing the invaluable contributions of Nepal's security forces, Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, has announced the initiation of legal procedures to reserve a mandatory 2 percent share in upcoming hydropower Initial Public Offerings (IPOs) specifically for security personnel. This policy decision, unveiled during a recent House of Representatives meeting, underscores the government's commitment to honoring the continuous dedication and selfless service rendered by security forces, particularly during critical national crisis management scenarios. Minister Shrestha elaborated on the rationale behind this proposal, highlighting the immense risks and challenges faced by security personnel. He emphasized their critical role in search and rescue operations across Nepal's diverse and often treacherous terrain, frequently under adverse weather conditions. By reserving a portion of hydropower shares, the government intends to provide these dedicated individuals with direct ownership in the nation's burgeoning energy sector. This initiative is envisioned not merely as a financial incentive but as a profound mark of honor and gratitude for their unwavering commitment to the country's safety and stability. Such a policy could foster a deeper sense of national participation and reward for those who serve on the front lines, potentially boosting morale and providing a tangible benefit for their service. Nepal's IPO market has traditionally seen allocations for the general public, employees of the issuing company, and sometimes mutual funds and local residents of project-affected areas. The introduction of a dedicated quota for security personnel would mark a notable expansion of this allocation structure. This move could potentially enhance the attractiveness of hydropower IPOs, as it broadens the investor base and aligns investment opportunities with national service. For investors, understanding the evolving allocation landscape is crucial, as changes in quota distribution can influence subscription rates, overall market dynamics for new issues, and potentially the availability of shares for other investor categories. This could lead to increased demand for hydropower IPOs, given the stable and often guaranteed returns associated with such investments in Nepal. Beyond the IPO allocation, Minister Shrestha also took the opportunity to commend the diligent efforts of agency workers and various departments under his ministry. He specifically acknowledged their coordinated and effective response to the recent Bhote Koshi disaster, which underscored the critical need for robust infrastructure and rapid response mechanisms. Learning from such past incidents, the Minister issued directives to subordinate authorities, emphasizing the imperative to strictly implement higher safety standards across all energy projects. Furthermore, he called for the integration of modern technology in the construction and maintenance of energy infrastructure, with a clear objective to build more disaster-resilient systems for the future. This proactive approach aims to safeguard national assets and ensure uninterrupted energy supply, even in the face of natural calamities. This dual focus—on recognizing national heroes through investment opportunities and fortifying critical infrastructure—reflects a comprehensive approach to national development. The push for disaster-resilient energy infrastructure is particularly pertinent for Nepal, a country highly susceptible to natural calamities such as floods, landslides, and earthquakes. Ensuring the longevity and operational continuity of hydropower projects, which are central to Nepal's economic growth and energy independence, is paramount. Investors will likely view these directives positively, as enhanced safety standards and technological integration can mitigate risks associated with project development and operation, thereby safeguarding long-term returns and ensuring the sustainability of their investments. In conclusion, Minister Shrestha's announcement signals a progressive step towards integrating social welfare with economic development. The proposed 2 percent IPO quota for security personnel is a commendable initiative to acknowledge their sacrifices, while the emphasis on disaster-resilient infrastructure development highlights a forward-thinking approach to securing Nepal's energy future. These policy directions are expected to shape the landscape of Nepal's energy sector and its capital markets, offering new avenues for participation and reinforcing the nation's commitment to sustainable growth and national security.
Nepal Bank Limited Deposits Rs 84.20 lakh Employee Contribution to Disaster Relief Fund
Nepal Bank Limited has deposited Rs 84.20 lakh collected from its employees’ salaries to the Prime Minister’s Disaster Relief Fund. The bank deposited Rs 8,420,898.93 on Ashoj 6, 2083, following the government’s call for employees of public institutions to contribute to the fund for relief, rescue and rehabilitation of people affected by the floods in Rasuwagadhi, the Bhotekoshi River and downstream areas. Earlier, Nepal Bank had contributed Rs 3.01 crore from its Corporate Social Responsibility (CSR) fund to the Prime Minister’s Disaster Relief Fund. The bank had also provided food and other essential supplies to people affected by the disaster.
Nepal Expands Global Diplomatic Footprint, Establishes Ties with Grenada
Nepal has officially broadened its international diplomatic network by establishing formal relations with Grenada, a move that underscores the nation's unwavering commitment to global engagement and multilateral cooperation. This significant agreement, formalized in New York, brings the total number of countries with which Nepal maintains diplomatic ties to 186, marking another milestone in its foreign policy endeavors and reflecting its proactive approach to international relations. The joint statement formalizing this new bilateral relationship was signed by Nepal's Foreign Minister, Shishir Khanal, and Grenada's Finance Minister, Dennis Cornwall. The ceremony took place during a special event held at the Permanent Mission of Nepal to the United Nations in New York. This strategic choice of venue highlights Nepal's adeptness at leveraging the global platform provided by the UN to foster international partnerships and advance its diplomatic agenda. Such engagements on multilateral stages are crucial for a landlocked nation like Nepal, enabling it to amplify its voice and build alliances. Prior to the signing, both ministers engaged in constructive discussions, focusing on shared priorities and areas of mutual interest. A key outcome of these talks was a mutual commitment to collaborate closely on achieving the ambitious global development targets outlined in the Sustainable Development Goals (SDGs). Furthermore, both nations pledged to work together to address the escalating challenges posed by climate change—a critical issue for both Nepal, a mountainous country highly vulnerable to its impacts, and Grenada, a small island developing state (SIDS) facing existential threats from rising sea levels and extreme weather events. This shared vulnerability creates a strong basis for cooperation on environmental diplomacy and advocacy for climate justice on the international stage, potentially leading to joint initiatives and knowledge sharing. For Nepal, expanding diplomatic ties is more than just a symbolic gesture; it is a strategic imperative. Such relationships open avenues for enhanced economic cooperation, including potential trade agreements, tourism promotion, and investment opportunities, even with smaller economies. While Grenada, a Caribbean nation known for its vibrant tourism industry and spice exports, may not be a traditional economic powerhouse for Nepal, the establishment of formal ties lays the groundwork for future exchanges in areas such as cultural tourism, agricultural expertise, and even potential avenues for skilled labor migration. It also strengthens Nepal's voice in international forums, allowing it to build alliances and garner support for its positions on various global issues, from trade liberalization to peace and security. This diplomatic expansion aligns seamlessly with Nepal's long-standing foreign policy principles of non-alignment, peaceful coexistence, and multilateralism. By forging connections with diverse nations across the globe, Nepal reinforces its commitment to a rules-based international order and strengthens its capacity to navigate complex geopolitical landscapes. The engagement with a fellow developing nation like Grenada also exemplifies South-South cooperation, where developing countries collaborate to address common challenges and share best practices, particularly in areas like sustainable development and climate resilience. This partnership can serve as a model for how nations with shared vulnerabilities can work together for mutual benefit. The formalization of diplomatic relations with Grenada is a testament to Nepal's proactive and outward-looking foreign policy. It signifies Nepal's growing presence on the global stage and its dedication to fostering friendships and partnerships that can contribute to its national development goals and global peace and prosperity. Investors and observers of Nepal's international relations will note this as a positive step towards diversifying its global engagements and potentially unlocking new avenues for economic and cultural exchange in the long term. The emphasis on SDGs and climate action also signals Nepal's commitment to responsible global citizenship, which can enhance its appeal to international partners and development agencies, potentially attracting more foreign aid and investment focused on sustainable development.
Nepal's Energy Minister Directs NEA to Prioritize Reliability, Governance, and Customer Satisfaction
Nepal's Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, has issued a comprehensive directive to the Nepal Electricity Authority (NEA), urging the state-owned utility to adopt a more result-oriented approach and significantly enhance its service delivery. The directives were delivered during the oath-taking ceremony of the newly appointed Executive Director, Dirghayu Kumar Shrestha, underscoring the government's commitment to transforming the nation's power sector. Minister Shrestha emphasized that as a vital state institution, the NEA must prioritize public service, striving to make electricity services more reliable, of higher quality, and truly customer-centric. He highlighted the critical need for responsible and accountable operations, reminding the leadership that state bodies are ultimately servants of the people. This focus on public accountability is a key message for investors, signaling a push for greater transparency and efficiency within a crucial public enterprise. A significant point of instruction revolved around ensuring the sustainability and resilience of the power system, particularly in the wake of recent natural disasters. The Minister specifically directed attention to the Trishuli River system, which had faced disruptions due to floods but has since been restored. He stressed the importance of making such critical infrastructure robust and dependable for the long term. Looking ahead, Minister Shrestha called for continuous analysis and forecasting of electricity demand and supply. The ultimate goal, he stated, is to guarantee that all customers – from domestic households to industrial complexes – receive uninterrupted, high-quality power 24 hours a day, seven days a week, throughout the year. This commitment to stable power supply is a strong positive signal for industrial investors, who often cite energy reliability as a major concern. Furthermore, the Minister underscored the necessity of transparent, economical, efficient, and optimal utilization of available resources, manpower, and facilities, especially during challenging circumstances. He mandated that institutional governance and customer satisfaction should serve as the fundamental pillars for evaluating NEA's performance. This directive aligns with modern corporate governance principles and aims to foster a more accountable and responsive organization. For potential investors, a well-governed and customer-focused NEA translates into a more predictable and supportive operating environment. Minister Shrestha also outlined strategic priorities for infrastructure development. He instructed the NEA to place high importance on the construction of new electricity transmission lines and the improvement of existing distribution systems. Accelerating the implementation of strategically important projects and demonstrating proactive leadership in the reconstruction of power projects damaged by disasters were also key directives. These infrastructure initiatives are crucial for expanding access to electricity, reducing transmission losses, and supporting future economic growth across Nepal. The Minister stressed the importance of effective coordination among the Ministry, the NEA, and other relevant bodies to strengthen state structures, making them more accountable and results-driven. He expressed confidence in the newly appointed Executive Director, Dirghayu Kumar Shrestha, acknowledging his commitment to tackling the challenges in the energy sector, particularly those arising from recent calamities. Minister Shrestha extended his best wishes for a successful tenure, anticipating that the new leadership would continue to work with the same dedication. Adding to this, Dr. Jagdish Karmacharya, the Acting Secretary of the Ministry, congratulated Executive Director Shrestha, affirming that the government had entrusted him with this responsibility based on his expertise and qualifications. Dr. Karmacharya expressed his belief that under Shrestha's leadership, the NEA would achieve more effective accomplishments in the future. He emphasized the need for the new leadership to confront all challenges, including the loss of life and property caused by recent disasters, and to steer the institution forward. These directives from the Energy Minister are a clear indication of the government's strategic focus on strengthening Nepal's energy backbone. For investors, particularly those eyeing industrial or infrastructure projects in Nepal, a more reliable, efficient, and customer-oriented NEA promises a more conducive business environment. The emphasis on governance, infrastructure development, and disaster resilience suggests a long-term vision for a robust energy sector, which is fundamental to the nation's economic stability and growth. The successful implementation of these directives will be crucial in unlocking Nepal's full economic potential and attracting further domestic and foreign investment.
Parliamentarians Urge Citizen Investment Trust to Spearhead National Capital Formation
In a pivotal discussion held during Wednesday's session of the House of Representatives, Nepali parliamentarians strongly advocated for transforming the Citizen Investment Trust (CIT) into a foundational pillar for national capital formation. The debate centered on the 'Citizen Investment Trust (Third Amendment) Bill, 2083,' introduced by Finance Minister Dr. Swarnim Wagle, with lawmakers emphasizing the critical need to mobilize citizens' savings securely into productive sectors vital for the nation's economic growth. Currently holding over NPR 300 billion in capital, the CIT's potential as a catalyst for economic development was a recurring theme. MPs urged that this substantial fund be made more dynamic and strategically deployed as a primary instrument for building national capital. They highlighted that existing legal frameworks limit the scope of investment, calling for an expansion into long-term, high-return areas such as infrastructure development, hydropower projects, data centers, and advanced technology. Sushil Khadka, a Member of Parliament from the ruling Rastriya Swatantra Party, underscored the urgency of deploying the capital currently held by the CIT into national pride projects and other productive sectors. He argued against limiting the fund's use primarily to employee loans, stressing that it should instead serve as an engine for the country's long-term economic growth. Khadka pointed out that the combined capital of the Citizen Investment Trust and the Employee Provident Fund amounts to approximately NPR 10 trillion, asserting that keeping such a significant sum 'idle' represents a substantial loss for the nation. He specifically called for opening avenues for investment in critical areas like hydropower, transmission lines, artificial intelligence, and data centers. Echoing this sentiment, MP Krishna Hari Budhathoki, also from the Rastriya Swatantra Party, articulated a vision for the CIT to evolve beyond a mere savings collection institution into a fundamental cornerstone of national economic development. He emphasized that the institutional mobilization of small savings for long-term capital formation would significantly enhance Nepal's economic security and broaden its investment sources. Budhathoki welcomed the bill's intention to expand investment into diverse sectors such as energy, transportation, tourism, agriculture, information technology, education, and health. However, he cautioned that while expanding investment horizons, it is paramount to maintain institutional good governance, meticulously assess project feasibility, potential returns, and inherent risks. Further recommendations from MP Budhathoki included the implementation of digital savings systems, specialized savings programs targeting the youth, and mechanisms to channel remittances into productive sectors. He stressed that safeguarding citizens' savings must remain the top priority, advocating for these funds to be linked with green and sustainable projects. MP Nitima Bhandari, another Rastriya Swatantra Party member, expressed strong support for the proposed expansion of CIT's investment capacity and the broadening of productive sector engagement. As the fund's size grows, she presented a four-point recommendation to the government for strengthening legal provisions related to investment security, governance, and transparency. Bhandari lauded the government's initiative to increase the authorized capital from NPR 8 billion to NPR 10 billion and the paid-up capital from NPR 3 billion to NPR 6.8 billion, believing that the bill's objective of expanding investment into energy, tourism, agriculture, and technology will significantly contribute to national capital formation. She also called for clear legal provisions to address and eliminate potential conflicts of interest within the CIT's board of directors, advocating for the proposed capital increase to be mandatory rather than optional, coupled with effective monitoring of its implementation. Citing Nepal's status as a party to the UN Convention Against Corruption, she highlighted the necessity of publicly disclosing details of all major investments and their returns. MP Madhav Bahadur Thapa drew the government's attention to the critical need to prevent political interference in the management of CIT funds and to ensure the absolute security of citizens' savings. He clarified that the funds accumulated in the Citizen Investment Trust are not government property but rather capital built on the trust of the citizens. Thapa warned that investments made based on political influence, access, or favoritism could have long-term detrimental effects on national pride projects and the overall economy. He suggested incorporating expert participation in investment decisions to mitigate risks and utilizing digital technology to make CIT services easily accessible across the country. MP Sitaram Sah emphasized that given the direct link between the funds in the CIT and the future security of citizens, their management demands exceptional caution. While welcoming the bill's proposal to increase the authorized capital to NPR 10 billion, Sah noted that merely increasing capital is insufficient; the primary challenge lies in its safe and transparent mobilization. He expressed confidence that boosting CIT's investments in long-term sectors such as energy, tourism, information technology, and agriculture would significantly contribute to the nation's economic development and job creation. The discussion also highlighted the importance of legally incorporating modern financial instruments like private equity and venture capital. Overall, parliamentarians positively received the government's proposal to increase the authorized capital to NPR 10 billion and the paid-up capital to NPR 6.8 billion. However, they collectively stressed the paramount importance of institutional good governance, transparency, and professional expertise, especially in managing the increased risks associated with larger investments. Specific emphasis was placed on conflict of interest management, the appointment of independent directors, and clearly defining risk assessment protocols within the law. Lawmakers unequivocally called for insulating the CIT from political interference and safeguarding citizens' savings. Drawing inspiration from examples like Norway's pension fund, some MPs suggested that long-term savings could be developed as a crucial tool for driving national economic growth and import substitution. Following this theoretical support from the parliamentarians, the bill is now set to proceed to the relevant committee for clause-by-clause deliberation, marking a significant step towards potentially reshaping Nepal's financial landscape.
Kathmandu Police Apprehend Duo for Impersonating Officers and Extortion
Kathmandu police have successfully apprehended two individuals accused of extorting money from a local health clinic by impersonating law enforcement officers. The suspects, identified as Roshan Surkheti, 31, and Sanjay Bisunkhe, 26, both residents of Basundol, Chandragiri Municipality-2, were arrested following a swift investigation into their illicit activities. The incident unfolded on Thursday evening when the duo reportedly entered a health clinic located in Thankot, Chandragiri Municipality-7. Posing as plainclothes police officers assigned to conduct an inspection of medical shops, they allegedly intimidated the clinic operator. Under the guise of official authority, they proceeded to extort cash directly from the pharmacy counter before attempting to flee the scene. Upon receiving information about the crime, a dedicated team from the Kathmandu District Police Range immediately launched a search operation, leading to the prompt apprehension of Surkheti and Bisunkhe. They are currently facing charges related to criminal gain (extortion) and fraud, with the Kathmandu District Court granting a four-day remand to facilitate further investigation into the matter. For investors and the broader business community, incidents like these, while localized, underscore the critical importance of a secure and predictable operating environment. The prevalence of such fraudulent activities can erode trust, particularly among small and medium-sized enterprises (SMEs) that form the backbone of the local economy. A stable legal framework and effective law enforcement are fundamental pillars that support business confidence and encourage both domestic and foreign investment. When businesses feel secure from criminal elements, they are more likely to expand, innovate, and contribute to economic growth, making the police's proactive response in this case a positive signal for maintaining order. The swift action taken by the Nepal Police in apprehending the suspects sends a clear message that such criminal behavior will not be tolerated. This commitment to upholding the rule of law is essential for fostering an environment where businesses can thrive without fear of exploitation. Investors often look beyond macroeconomic indicators to assess the ground-level security and governance, recognizing that these factors directly impact operational risks and the long-term viability of ventures. Therefore, the continuous efforts by law enforcement agencies to combat crime and ensure public safety are indirectly, yet significantly, beneficial for the overall investment climate. In a separate but important update for market participants, the Nepali stock market is scheduled to remain closed on Ashwin 5, Monday. Investors are advised to take note of this closure, likely due to a public holiday, and plan their trading and investment activities accordingly. This ensures that all stakeholders are aware of market operating hours and can adjust their strategies to align with the trading calendar.
NRB Takes Action Against Six Microfinance Institutions
Nepal Rastra Bank (NRB) has taken regulatory action against six Class “D” microfinance financial institutions and their concerned officials during the fourth quarter of Fiscal Year FY 2082/83, citing issues related to capital adequacy and mandatory cash reserve requirements. Four institutions, Forward Microfinance Financial Institution, Dhaulagiri Microfinance Financial Institution, Matri Bhumi Microfinance Financial Institution, and NIC Microfinance Financial Institution were placed under corrective action after failing to maintain the required minimum capital adequacy ratio as of mid-July 2025. Forward Microfinance maintained a ratio of 6.12%, Dhaulagiri 6.38%, Matri Bhumi 4.08%, and NIC Microfinance 6.39%. NRB said the corrective measures were taken under the Bank and Financial Institutions Prompt Corrective Action Bylaw, 2017. Matri Bhumi was subjected to action under a different provision of the bylaw based on the extent of its shortfall. Meanwhile, NRB fined Wean Nepal Microfinance Financial Institution Rs. 58.38 rupees for failing to maintain the mandatory cash reserve in Chaitra 2082, marking its first such violation. Sanjeevani Microfinance Financial Institution was also fined for failing to maintain the required cash reserve for four consecutive months. It was fined Rs. 713.88 for Chaitra 2082, Rs. 1,067.40 for Baisakh 2083, Rs. 1,412.91 for Jestha 2083, and Rs. 1,410.78 for Ashadh 2083, for the first, second, third and fourth violations, respectively.
Kamana Sewa Bikas Bank Installs Five Waiting Benches in Kumaripati-Jawalakhel
Kamana Sewa Bikas Bank Limited has installed five waiting benches in the Kumaripati-Jawalakhel area in collaboration with the Kumaripati-Jawalakhel Trade Association. The benches were installed to provide a convenient resting space for pedestrians and passengers in the area. The benches were inaugurated at a program chaired by Kedar Nath Sharma, Province Head of the bank’s Kathmandu Province, and attended by Birendra Shakya, President of the Kumaripati-Jawalakhel Trade Association. Sharma said the bank has been carrying out community-focused activities alongside its customer services and will continue such initiatives based on local needs.
Kajaria Ramesh Tiles Expands Dealer Network with Pradhan Hardware Gallery
Kajaria Ramesh Tiles Limited has expanded its authorized dealer network with the opening of Pradhan Hardware Gallery. The new outlet will offer Kajaria’s range of wall and floor tiles in various designs, textures, finishes and formats. It will cater to homeowners, builders, architects, interior designers and construction professionals. The dealership was inaugurated on September 21, 2026, in the presence of Kajaria Ramesh Tiles Director Himanshu Agrawal and Miss Nepal World 2026 Deepmala Dhakal. Pradhan Hardware Gallery was also formally recognized as an authorized dealer of Kajaria Ramesh Tiles through the presentation of a dealer certificate. Kajaria currently has more than 100 showrooms across Nepal and offers over 3,000 tile designs, including glazed vitrified, ceramic wall and heavy-duty vitrified tiles.
Reminder! Last Trading Day to Secure Dividend of Five Companies
Today is the last day to grab the dividend proposed by Kalinchowk Darshan Limited (KDL). The company has called its 12th AGM on 16th Ashwin, 2083. The meeting will be held at German Homes Hotel, Gatthaghar, Bhaktapur, starting at 11:30 AM that day. Among the other agendas, the AGM will endorse an 8.9474% dividend for the fiscal year 2082/83. The meeting of the board of directors held on Bhadra 24 proposed an 8.9474% dividend for the fiscal year 2082/83. 8.5% bonus share issue worth Rs. 5.35 crore and a 0.4474% cash dividend (for tax purposes) worth Rs. 28.18 lakh have been proposed. The company's existing paid-up capital is Rs. 63 crore. Furthermore, there is an agenda to endorse the auditor's report with PL statements, financial reports, and cash flow reports for FY 2082/83, appoint an auditor for the fiscal year 2083/84, and approve the appointment of the board of directors. The company plans to issue 100% rights shares in a 1:1 ratio following the distribution of the proposed bonus shares. The book closure date is Ashwin 09. Therefore, the shareholders who held their shares before that date are entitled to the dividend payout and can attend this AGM. Similarly, Today is the last day to grab the dividend proposed by Machhapuchchhre Bank Limited (MBL). The company has called its 28th AGM on 28th Ashwin, 2083. The meeting will be held in Hotel Pokhara Grand, Pokhara, starting at 11 AM that day. Among the other agendas, the AGM will endorse a 6% dividend for the fiscal year 2082/83. The 564th meeting of the Board of Directors has decided to distribute the dividend from the paid-up capital of Rs. 12.08 Arba. 3% bonus shares and 3% cash dividend have been proposed. Thus, the bonus shares are a little over Rs. 36.25 crore and the cash dividend is worth a little over Rs. 36.25 crores. Furthermore, there is an agenda to endorse the auditor's report with PL statements, financial reports, and cash flow reports for FY 2082/83 and appoint an auditor for the fiscal year 2083/84. Also to approve an 8.25% cash dividend of Rs. 7,45,89,041 to preference shareholders, including tax, on a proportionate basis. The book closure date is on Ashwin 12. Therefore, the shareholders maintained before that day are entitled to dividend payout and can attend this AGM. Also, Today is the last day to grab the dividend proposed by "RBB Mutual Fund 1" and "RBB Mutual Fund 2". In a meeting of the board of directors of RBB Merchant Banking Limited decided to distribute a 2.75% cash dividend (including tax) for RBB Mutual Fund 1 and a 6% cash dividend (including tax) for RBB Mutual Fund 2 for the fiscal year 2081/82. RBB Mutual Fund 1 is a closed-ended mutual fund with a 7-year maturity period, while RBB Mutual Fund 1 has a 10-year maturity period. Both funds are managed by RBB Merchant Banking Limited. As of the month of Ashadh, the Net Asset Value (NAV) of RMF1 is reported at Rs. 10.27, with a closing price of Rs. 9.50. RMF2's NAV stands at Rs. 10.85, with a closing price of Rs. 9.75. The book closure date for dividend eligibility is 12th Ashwin, meaning unit holders on record till 11th Ashwin are entitled to receive the dividend. Also, Today is the last day to grab the dividend proposed by Global IME Balanced Fund-1 (GIBF1). The 207th meeting of the board of directors of Global IME Capital Limited, held on Bhadra 21, has decided to distribute a 12% cash dividend (including tax) worth Rs. 12.30 Crore to the unit holders of Global IME Balanced Fund-1 (GIBF1) for the fiscal year 2082/83. Global IME Balanced Fund-1 (GIBF1) is a closed-ended mutual fund with a 10-year maturity period. The fund is sponsored by Global IME Capital Limited and managed by Global IME Capital. The book closure date for dividend eligibility is Ashwin 12. Thus, the shareholders maintained before that day are entitled to receive the dividend.
Flydubai Begins Regular Commercial Flights Between Pokhara and Dubai Today
Flydubai, a well known international airline, is set to begin regular commercial flights between Pokhara and Dubai today. The incoming flight from Dubai is scheduled to land at Pokhara International Airport at 6:15 PM, with the return flight departing for Dubai at 7:15 PM. The arriving aircraft will be given a traditional water cannon salute upon landing to mark the inaugural flight. Under its flight schedule, the airline will operate flight number FZ 1165 for the Dubai-to-Pokhara route and flight number FZ 1166 for the Pokhara-to-Dubai route. Ticket prices for travel from Pokhara to Dubai are set at around NPR 190,000 for business class and approximately NPR 91,000 for economy class. The flight from Dubai to Pokhara will take around 4.5 hours, while the return journey back to Dubai will take about 5.5 hours. This new air link is expected to provide stable international connectivity for Pokhara and give a major boost to local tourism.
Land Revenue Office in Nepalgunj Collects Over Rs 74 Crore in Last Fiscal Year
The Land Administration Office in Nepalgunj, Banke, collected over Rs 74 Crore 86 lakhs in revenue during the fiscal year 2082/83. The office continues to operate from a rented building on Bidyut Road after its original premise and documents were destroyed in an arson attack during a 'Gen-Z' protest on September 9, 2025. According to Office Chief Santosh BK, capital gains tax was the largest income source, generating Rs 37 crore 40 lakhs. Registration fees brought in Rs 36 crore 90 lakhs, while service and administrative charges contributed Rs 54 lakhs 23 thousand. The remaining revenue came from minor fees, including form sales, judicial costs, fines, and security deposits. Despite operating from temporary quarters, the office managed large volumes of property transfers, land ownership registration, and legal updates. Additionally, officials successfully restored land ownership certificate records for 31,189 affected landowners. Office Chief BK assured the public that services remain prompt, barring occasional delays caused by issues in the department's online system.
U.S. Announces Additional 4 Arba Aid for Nepal’s Bhotekoshi Flood Recovery
The United States has announced an additional $31 million in assistance for Nepal’s recovery from the devastating Bhotekoshi flood that struck on August 26. The announcement was made during a meeting between Nepal’s Foreign Minister Shishir Khanal and U.S. Deputy Secretary of State for Political Affairs Alison Hooker in New York. Of the additional assistance, $10 million will be used to build permanent bridges to replace damaged transport infrastructure and improve regional connectivity. The bridges are planned to be purchased from U.S. companies. Another $8 million will support affected communities with drinking water, sanitation, shelter, protection, livelihoods and winter needs. The U.S. also plans to provide $13 million worth of U.S. made drones for post-disaster recovery and future disaster management. With the new assistance, total U.S. support for Nepal’s flood response and recovery will exceed $36 million. The U.S. has also said it will continue working with the Nepali government to identify additional needs. The meeting took place in New York on the sidelines of the 81st United Nations General Assembly, where the two sides also discussed Nepal’s post-flood reconstruction and recovery efforts.
"7% Laxmi Sunrise Debenture 2092 (LSD92)" Listed in NEPSE
An agreement between Laxmi Sunrise Bank Limited and the Nepal Stock Exchange (NEPSE) was penned for a listing of "7% Laxmi Sunrise Debenture 2092 (LSD92)". Following the agreement, 30,00,000 units have been listed at a par value of Rs. 1000 per unit. The issue had opened on 14th Shrawan to 20th Shrawan 2083. Machapuchhre Capital Limited was the issue manager. As the name suggests, the "7% Laxmi Sunrise Debenture 2092 (LSD92)" is a debenture with a maturity period of 10 years and a coupon rate of 7%.
Citizens Bank International Unveils Book Closure Date for its 4% Dividend; Calls AGM on Ashwin 28
Citizens Bank International Limited (CZBIL) has called its 20th AGM on 28th Ashwin, 2083. The meeting will be held at the Amritbhog, Kalikasthan, Dillibazar, Kathmandu, starting at 11:00 a.m. that day. Among the other agendas, the AGM will endorse a 4% dividend for the fiscal year 2082/83. The 521st meeting of the board of directors held on Bhadra 31 has decided to distribute 3.80% bonus share worth Rs. 58.92 crores and a 0.20% cash dividend worth Rs. 3.10 crores, including tax, based on the bank’s paid-up capital. The company currently has a paid-up capital of Rs. 15.50 arba. Furthermore, there is an agenda to endorse the auditor's report with PL statements, financial reports, and cash flow reports for FY 2082/83 and appoint an auditor for the fiscal year 2083/84. Ashwin 19 is the book closure date. Thus, shareholders who maintained that day are entitled to the dividend payout and can also attend the AGM.
Public Issue of "NIC ASIA Equity Opportunity Fund" Mutual Fund Scheme Opening From Today
NIC Asia Capital Limited is opening the issue of the "NIC ASIA Equity Opportunity Fund," a close-ended mutual fund scheme. The issue will open from today, i.e., on the 7th Ashoj, 2083, and close on the 13th Ashoj, 2083. If not fully subscribed by the early closing date, the issue can be extended until Ashoj 21. Out of 8 crore unit shares, 15%, i.e., 1,20,00,000 crores worth Rs. 12 crores have been allocated to the scheme manager, NIC Asia Bank Limited. The remaining 6,80,00,000 crores units worth Rs. 68 crores will be issued to the general public and institutions. "NIC ASIA Equity Opportunity Fund" is a closed-ended fund. Applicants can apply for a minimum of 100 units to a maximum of 1,00,00,000 units. Notice:
Deadline To Apply For Muktinath Capital Limited's Mutual Fund Scheme "Muktinath Mutual Fund 2" Extended Till Ashwin 15
Muktinath Capital Limited has extended the deadline for the mutual fund scheme "Muktinath Mutual Fund 2" to the general public and institutions until 15th Ashwin, 2083. The issue opened on the 1st Ashwin, 2083, and was supposed to close on 6th Ashwin, 2083. However, since the scheme received fewer applications, the deadline has been extended to 15th Ashwin, 2083. Out of 10 crore units, 13%, i.e., 1,30,00,000 units worth Rs. 13 crore, have been allocated to the scheme manager, Muktinath Bikas Bank Limited, and 2%, i.e., 20,00,000 units worth Rs. 2 crore, have been allocated to the fund sponsor, Muktinath Capital Limited. The remaining 8,50,00,000 units worth Rs 85 crore will be issued to the general public and institutions. According to CDSC, 1,41,788 applicants have applied for 1,00,244,700 units worth Rs. 1 Arba so far. "Muktinath Mutual Fund 2" is closed-ended. Applicants can apply for a minimum of 100 units to a maximum of 1,00,00,000 units. Notice:
Foreign Minister Khanal and India's External Affairs Minister Jaishankar Hold Talks
Minister for Foreign Affairs Shisir Khanal and India's Minister for External Affairs Dr. S. Jaishankar held a bilateral meeting in New York, USA today. The meeting was held on the sidelines of the 81st United Nations General Assembly at the UN Headquarters in New York. During the meeting, Minister Khanal expressed sincere appreciation to the Government of India and the people of India for their solidarity and immediate critical support following the recent catastrophic floods in Nepal, according to Minister Khanal's Secretariat. In the meeting, the two Ministers exchanged views on various key issues of mutual interest and talked about further strengthening the close and longstanding ties between Nepal and India, said the Secretariat.
Nepal's Automobile Sector Reels from Bhote Koshi Floods; NADA Steps Up to Facilitate Recovery
The Bhote Koshi floods and subsequent inundation have dealt a severe blow to Nepal's automobile sector, causing extensive damage to vehicles, warehouses, offices, and vital equipment. In response to this significant crisis, the NADA Automobiles Association of Nepal has announced a comprehensive initiative to provide crucial facilitation and coordination for its affected member entrepreneurs. This proactive stance by NADA underscores the gravity of the situation and the collective effort required to mitigate the economic fallout. The devastating floods have impacted various facets of the automobile business, from imported vehicles awaiting customs clearance at border points to established showrooms and service centers. NADA reports that numerous vehicles have been damaged, while an alarming number have gone missing entirely. Beyond the direct loss of inventory, the floods have also wreaked havoc on essential business infrastructure and other valuable assets, disrupting supply chains and operational capabilities across the affected regions. The scale of the damage necessitates a concerted and coordinated response from all stakeholders. To effectively address the crisis, NADA has called upon its member companies to promptly furnish detailed information regarding their losses. This includes specifics on damaged and missing vehicles, their precise locations, the customs checkpoints involved, the quantity and types of vehicles affected, the extent of damage to warehouses and offices, comprehensive insurance details, and any relevant loan-related information. This meticulous data collection is paramount, as it will form the bedrock for NADA's subsequent actions and advocacy efforts. Accurate and timely reporting from affected businesses will enable NADA to present a clear and compelling case to government bodies, financial institutions, and insurance providers. NADA's strategy is multi-pronged, designed to tackle the immediate and long-term challenges faced by the automobile sector. A key focus will be on streamlining the insurance claim process. By coordinating directly with insurance companies, NADA aims to expedite settlements and ensure that affected businesses receive the compensation they are entitled to without undue delay. Furthermore, the association plans to collaborate closely with customs offices to facilitate the identification of missing or damaged vehicles and navigate the necessary procedural complexities for their recovery or write-off. This coordination is vital, especially for vehicles that were in transit or awaiting clearance when the disaster struck. Recognizing the immense financial strain on businesses, NADA is also committed to advocating for financial relief measures. The association intends to engage with banks and financial institutions to explore options for loan restructuring and the review of payment periods for affected entrepreneurs. Such measures are critical to prevent widespread bankruptcies and allow businesses the breathing room needed to rebuild and recover. The economic stability of these businesses is not just a concern for their owners but also for the thousands of employees they support and the broader economy. In a broader strategic move, NADA plans to compile a comprehensive report detailing the overall damage sustained by the automobile sector. This report will be presented to the government and other relevant stakeholders, serving as a powerful tool for advocating for essential relief packages, facilitation measures, and crucial policy interventions. The association is also preparing to establish a dedicated coordination and facilitation committee, as needed, to ensure a streamlined and effective response to the ongoing crisis. NADA President Surendra Kumar Upadhyaya has reiterated the urgency for member entrepreneurs to submit accurate damage assessments to the NADA Secretariat without delay, emphasizing that collective action and precise information are key to navigating this challenging period. The automobile sector is a significant contributor to Nepal's economy, supporting numerous jobs and driving economic activity through sales, service, and related industries. The disruption caused by the Bhote Koshi floods therefore has wider implications for national economic recovery and stability. NADA's proactive and comprehensive approach is a testament to its commitment to its members and the resilience of the Nepali business community in the face of adversity. The success of these initiatives will largely depend on the cooperation of affected businesses, the responsiveness of government agencies, and the flexibility of financial institutions to provide much-needed support. This collective effort will be crucial in helping the sector not just recover, but also build greater resilience against future natural calamities.
Nepal's Investment Board CEO Highlights Critical Gap Between Approved and Implemented Foreign Investment
Nepal's aspirations for robust economic growth, fueled by foreign direct investment (FDI), face a significant hurdle: a substantial disparity between approved investment pledges and their actual realization on the ground. This critical issue was brought to light by Ms. Yanki Ukya, Chief Executive Officer of the Investment Board Nepal (IBN), during a recent session of the National Assembly's Development, Economic Affairs, and Good Governance Committee. Her remarks underscore a pressing need for systemic reforms to translate investor enthusiasm into tangible economic benefits. Ms. Ukya emphasized that while foreign investors exhibit considerable interest and eagerness to invest in Nepal, the effective implementation of approved projects remains a persistent challenge. Over the past 14 years, the IBN has approved investments totaling approximately NPR 1.67 trillion (later clarified as 1.6 trillion). However, a comprehensive study is urgently required to ascertain how much of this approved capital has genuinely flowed into development projects and generated employment opportunities. The CEO highlighted a significant chasm between the volume of approved investment and the capital that ultimately reaches the implementation phase, stressing the imperative to link approved investments directly to job creation and increased national production. The IBN CEO identified several key sectors that continue to attract foreign investor interest, including tourism, hydropower, information technology, and chemical fertilizers. These sectors represent vital pillars for Nepal's economic diversification and sustainable development. Despite this keen interest, investors frequently encounter formidable obstacles, primarily stemming from lengthy and cumbersome approval processes. Navigating the myriad stages of project development—from initial approvals and licensing to coordination with various government bodies, implementation, and eventual transfer—often proves to be a deterrent, creating an environment of uncertainty and inefficiency. In response to these challenges, Ms. Ukya outlined the IBN's proactive efforts to transform itself into a more effective "delivery unit," with a sharpened focus on project implementation. She stated that the Board is actively working to streamline processes and enhance coordination among all relevant stakeholders to ensure that approved investments translate into productive ventures and contribute meaningfully to the national economy. This strategic shift aims to foster an environment where foreign capital can be deployed efficiently, thereby maximizing its potential for job creation and royalty generation for the state. Currently, the Investment Board has five projects in various stages of study and evaluation, with three projects already operational. This pipeline, while promising, underscores the need for accelerated conversion of proposals into active projects. Ms. Ukya also suggested a critical review of the Investment Board's existing structure to better align it with its mandate of facilitating and expediting investment. Effective inter-agency coordination is paramount, she noted, to bridge the gap between policy formulation and practical execution, ensuring that the nation fully capitalizes on the expressed interest of global investors. The disparity between investment approval and implementation is not merely an administrative bottleneck; it represents a significant missed opportunity for Nepal's economic advancement. Addressing this gap is crucial for attracting further FDI, stimulating economic activity, creating much-needed employment, and ultimately fostering sustainable development across various sectors. The IBN's renewed focus on becoming a delivery-oriented entity, coupled with proposed structural reforms and enhanced inter-agency collaboration, offers a pathway towards unlocking Nepal's full investment potential and translating investor enthusiasm into tangible national prosperity.
Nepal's Tourism Sector Faces Staggering NPR 52.67 Billion Loss from Bhote Koshi-Trishuli Floods
Nepal's vibrant tourism sector has been dealt a severe blow, with preliminary reports indicating an estimated NPR 52.67 billion (approximately USD 397 million) in economic damage caused by the recent devastating floods and landslides in the Bhote Koshi and Trishuli river basins. This significant financial impact underscores the vulnerability of the nation's crucial tourism industry to natural disasters and highlights the urgent need for robust recovery and resilience strategies. The comprehensive report, detailing the extensive damage, was jointly presented by Sahadev Dhamala, Coordinator of the Nepal Tourism Board's Quick Response Team (QRT) and Executive Member, alongside Hikmat Singh Air, Senior Director of the Nepal Tourism Board. The presentation took place at the Ministry of Culture, Tourism and Civil Aviation, attended by key government officials including Minister Khadga Raj Poudel 'Ganesh', Secretary Mukunda Niraula, and representatives from both the public and private sectors of the tourism industry. The assessment revealed widespread devastation across several key tourist regions, particularly Rasuwa, Nuwakot, Dhading, and Gorkha. These areas experienced severe damage to tourism infrastructure, hotels, tourism businesses, transportation access, trekking trails, and overall tourist management systems. The initial estimates paint a grim picture of the sectoral breakdown of losses: * **Hotel Business:** The hospitality sector bore the brunt of the damage, with an estimated loss of NPR 19.56 billion. This includes structural damage, loss of bookings, and operational disruptions. * **Foreign Tourism Income:** The floods are projected to result in a substantial reduction of NPR 14.60 billion in foreign tourism earnings, impacting the nation's foreign exchange reserves. * **Manpower and Tourist Management:** Losses related to human resources and the logistical challenges of managing tourists amounted to NPR 12.26 billion. * **Heritage and Tourism Infrastructure:** Damage to cultural heritage sites and essential tourism infrastructure was estimated at NPR 1.66 billion. * **Vehicles and Transportation:** The transport sector, vital for tourist mobility, suffered NPR 1.51 billion in damages to vehicles and access routes. * **Restaurants:** The food and beverage industry within the affected zones faced losses of NPR 1.38 billion. * **Langtang Area Business:** The popular Langtang region, a hub for trekkers, saw business transaction losses of NPR 1.27 billion. * **Domestic Tourism Revenue:** Even domestic tourism revenue was impacted, with an estimated loss of NPR 198.7 million. * **Rafting and Camping Sites:** Adventure tourism, particularly rafting and camping, sustained NPR 155 million in damages. * **Trekking Trails:** Essential trekking trails, crucial for Nepal's adventure tourism, incurred NPR 50 million in preliminary damages. Beyond the financial figures, the human toll of the disaster is equally concerning. The report indicated that 1,117 individuals, including both Nepali and foreign nationals, were affected or went missing during the floods. While 310 individuals have been successfully rescued and 13 have re-established contact, a staggering 794 individuals remain unaccounted for, comprising 606 foreign nationals and 188 Nepalis. Prompt search and rescue operations were initiated within an hour of the incident, coordinated with tourist police, travel and trekking companies, and tour operators. Looking ahead, the report emphasizes that post-disaster tourism recovery must extend beyond mere structural reconstruction. It calls for the development of a secure and sustainable tourism system that proactively addresses future climate-induced risks. Senior Director Air proposed a long-term vision to develop the Rasuwa region as a 'Climate Heritage' area, integrating climate resilience into its tourism framework. Furthermore, the report recommends establishing a 24/7 crisis cell and Quick Response Team within the Nepal Tourism Board, backed by an annual budget of NPR 10 to 50 million, to ensure effective coordination and rapid response during future crises. Immediate promotional campaigns in key international markets, including India, are also deemed crucial to reassure tourists and revive confidence. Sahadev Dhamala, representing the private sector, highlighted the urgent need for relief measures, tax exemptions, and concessional recovery packages for affected tourism businesses. He stressed the importance of swiftly restoring alternative trekking routes and transportation access, alongside a robust international communication strategy to convey that Nepal remains a safe and open destination for tourists. Minister Poudel reiterated the government's commitment to prioritizing the swift rescue of stranded tourists and the reconstruction of damaged tourism infrastructure. He pledged to effectively implement a joint action plan, developed in collaboration with the Nepal Tourism Board and the private sector, to restore safety, communication, and transportation access in major destinations before the upcoming tourist season. The preliminary report also identifies critical areas for institutional development, including the establishment of evidence-based and integrated information dissemination systems, climate-adaptive tourism infrastructure, early warning systems, expansion of tourist police services, and the institutionalization of a comprehensive tourism insurance system. To bolster international promotion, proposals include conducting press briefings and 'Nepal Night' events in two Indian cities. The Nepal Tourism Board has affirmed its commitment to enhancing coordination with relevant government bodies, local authorities, security agencies, and private sector stakeholders to prioritize tourist safety, reliable information dissemination, and the sustainable recovery of the tourism sector. This extensive damage report serves as a stark reminder of the challenges facing Nepal's tourism industry but also as a blueprint for a more resilient and sustainable future. The coordinated efforts of the government, private sector, and international partners will be vital in rebuilding and revitalizing this cornerstone of the Nepali economy.
Lawmaker Urges 'Ruthless' Government Action Against Black Marketing of Essentials
In a significant statement reflecting growing public concern, Member of Parliament Ramesh Prasai of the Rastriya Swatantra Party has called upon the government to adopt a 'ruthless' approach to curb rampant black marketing across the nation. Speaking to journalists at the Federal Parliament building complex, MP Prasai emphasized the urgent need for the government to implement a dual policy of 'compassion and punishment' to alleviate the persistent shortages and soaring prices of essential commodities such as cooking gas and sugar, which have severely impacted the daily lives of ordinary citizens. The issue of black marketing is not merely a matter of unfair trade practices; it has profound economic implications. When essential goods are hoarded and sold at inflated prices, it directly contributes to inflation, erodes consumer purchasing power, and distorts market mechanisms. For investors, such an environment signals instability and a lack of regulatory oversight, potentially deterring both domestic and foreign investment. A robust and transparent market, free from illicit activities, is crucial for fostering investor confidence and ensuring sustainable economic growth. MP Prasai's call underscores the public's frustration and the critical need for decisive government intervention to protect consumers and maintain market integrity. Beyond domestic economic concerns, MP Prasai also expressed high expectations for Prime Minister Balendra Shah's upcoming visit to the UN General Assembly. He voiced confidence that the Prime Minister would effectively leverage the global platform to highlight the severe impact of climate change on the Himalayan region and the resultant hardships faced by the Nepali populace. Climate change poses an existential threat to Nepal's key economic sectors, including agriculture, hydropower, and tourism. Melting glaciers, erratic weather patterns, and increased natural disasters directly affect food security, energy production, and the livelihoods of millions. Advocating for international support and climate justice on a global stage is vital for Nepal's long-term economic resilience and its ability to adapt to these environmental challenges. Furthermore, MP Prasai touched upon the sensitive issue of self-immolation incidents, expressing concern that excessive media coverage could inadvertently fuel negative societal excitement. He stressed the importance of both the media and the state being sensitive to the increasing prevalence of loneliness and psychosocial problems within society. While seemingly unrelated to financial markets, social stability is a cornerstone of economic prosperity. A society grappling with widespread mental health issues and social unrest can experience decreased productivity, increased public health costs, and a general decline in investor confidence. Addressing these underlying social issues through comprehensive mental health support and responsible media practices is essential for fostering a stable environment conducive to economic development. In a separate but important announcement for the financial community, the Nepali stock market is scheduled to remain closed on Ashwin 5th, Monday. This closure is a routine observance, likely due to a public holiday, and does not reflect any underlying market volatility or economic distress. Investors and traders should factor this into their trading schedules. Overall, MP Prasai's statements highlight a multifaceted challenge facing Nepal, encompassing economic regulation, climate advocacy, and social stability—all of which are critical for the nation's progress and attractiveness to investors.
Muktinath Bikas Bank's Customers Get Discounts at KGH Hotels
Muktinath Bikas Bank Limited has partnered with KGH Groups of Hotels and Resorts to offer it's discounts on various hotel and resort services. The bank's customer can receive discounts ranging form 10% to 30% at Maya Manor Boutique Hotel in Kathmandu, Waterfront Resort in Pokhara and Himalayan Front Resort. Customers booking for groups of more than 10 people will also receive complimentary accommodation for one person. The offer is available upon payment through a valid Muktinath bikas Bank debit or privilege card or through the bank’s mobile banking service. The bank has also launched a loan facility that allows customers to invest at 0% premium over its base rate.
Does Dividend Matter for Value Investors?
Our financial year 2082/83 has ended, and the new financial year has started. Most of the companies have already published their fourth quarterly financial reports. Based on their reports, investors are calculating how much dividend they are expecting. The good news is that some companies have already declared dividends and fixed the date of annual general meetings. Dividends are always hot topics among our fellow investors. I ask myself if it is true that paying dividends really creates value to shareholders. One of the important questions for the investor is not only whether a company pays a dividend, but also what it can do with the money it retains. For many investors, dividends have been one of the important indicators of shareholders' reward and compensation for their capital investment. A company earns a profit, distributes part of it, and shareholders receive cash or stock dividends or both. Stock dividends, which are popularly known as Bonus Shares, are very popular in our country; on the contrary, it is becoming rarer, and companies are preferring dividend reinvestment plans (DPR) in developed economies. I am writing this article considering the cash dividend as the central theme, as a stock dividend is only the transfer of net profit and retained earnings into paid-up capital with an additional number of outstanding shares. A dividend is one way for a company to return capital to shareholders. It is not a measure of whether a business is creating value. A company that pays no dividend can still create enormous wealth for shareholders and, in some cases, retaining earnings can be the more rational choice. The real question is what management can do with the profit the business earns. That question leads to a broader issue at the heart of long-term investing: Should a company distribute its profits, or should it retain them? The attraction of dividends There are good reasons investors prefer dividends. A reliable dividend can provide a visible stream of cash and may indicate that a company has established recurring cash flows. A long history of maintaining or increasing dividends can also give investors’ confidence that management is thinking seriously about capital allocation. For retirees and income-focused individuals, as well as Institutional Investors such as pension funds, have obvious appeal for the dividends. Receiving cash without selling shares can be particularly useful. Dividends can also form a meaningful part of an investor's total return over time. When a company pays a dividend, cash leaves the company. Around the ex-dividend date, the share price generally adjusts to reflect that distribution, although the actual market move can be obscured by normal price fluctuations. In other words, the company has not magically created value simply by moving money from its balance sheet to a shareholder's bank account. The more important question is what happens before that distribution. The money a company keeps Consider a company that earns Rs.100 million and decides not to distribute it. At first glance, some investors may conclude that shareholders have received nothing. But that is not necessarily true. Suppose management can reinvest the full Rs.100 million into the business and earn a 20% return on the additional capital. That investment could generate another Rs.20 million in annual profit. If management can repeat the process, the retained earnings become productive capital. This is where compounding begins. A company does not create value simply because it retains cash. It creates value when it can convert retained earnings into future profits and cash flows at attractive rates of return. That distinction matters enormously If a business earns high returns on capital and has a long runway for reinvestment, distribution of profit may actually limit its ability to compound. By contrast, if management has few attractive investment opportunities, keeping the money can become a problem. The quality of capital allocation therefore matters more than the existence of a dividend. What Warren Buffett's approach teaches. This is one reason Warren Buffett's approach to capital allocation is so useful. A company retaining 90% of its earnings is not necessarily better than one distributing 60%. Retention only creates value when the retained capital is used productively. Imagine two companies, each earning Rs.100 million. Company A retains the entire Rs.100 million and earns 20% on the additional capital. Company B also retains the entire Rs. 100 million, but can earn only 5% less than the inflation rate. Both are retaining their profits. Economically, they are very different businesses. Company A has a powerful compounding engine. Company B may eventually be accumulating cash without generating any return on it. At some point, Company B's management should probably consider dividends, acquisitions, or other ways of returning capital to owners. This is why return on invested capital, return on equity, free cash flow, and reinvestment opportunities can be more revealing than dividend yield alone. Dividends versus reinvestment The choice can be thought of as a capital-allocation decision. When a company generates Rs.100 of profit, management has several possible ways to use it. It can reinvest in the existing business. It can acquire another business. It can repurchase shares. It can reduce debt. Or it can pay a dividend. None of these choices is superior or inferior. The right decision depends on the return the company can generate from each alternative. Suppose management believes it can invest Rs.100 in the existing business and eventually create Rs. 20 or 30 or more of value. Giving that Rs. 100 to shareholders immediately may not be the best outcome. But suppose the company has reached maturity. Its market is saturated, expansion opportunities are limited, and new investments are producing only modest returns. In that situation, shareholders may be better served if management distributes the excess cash rather than pursuing growth for its own sake. That is the difference between retaining earnings and creating value with retained earnings. The danger of the dividend obsession Dividend-focused investing can sometimes encourage investors to look at the wrong number. A stock with a 7% dividend yield may appear more attractive than a company that pays no dividend. But what if the 7% dividend comes from a mature business with declining earnings, while the non-dividend-paying company can reinvest every dollar at 20% for the next decade? The second company may ultimately create much greater shareholder wealth. A high dividend yield can even become a warning sign when it reflects a falling share price rather than a growing distribution. Once, I fell into such a high-yield dividend trap, and it took me more than 2 years to recover from it. Conversely, a low dividend yield or no dividend at all can be perfectly rational when a company has highly productive uses for its capital. The dividend is therefore only one part of the investment equation. What about investors who need income? The argument for retained earnings does not mean dividends are unimportant. For investors who depend on portfolio income, dividends can be valuable. Receiving cash may be preferable to selling shares at an inconvenient time. But from an economic perspective, investors should distinguish between income preference and value creation. A shareholder who needs annual cash flow can receive it through dividends or, depending on circumstances, by selling a portion of a portfolio. What matters for long-term wealth is the total economic return of the investment, not simply whether the return arrived as a dividend. Capital should be allocated where it can generate the greatest value after considering risk, opportunity, and taxes. How much cash does the business generate? How much of that cash does management retain? What return does the company earn on the capital it retains? If attractive opportunities disappear, is management willing to return excess capital to shareholders? These questions tell us much more about the quality of a business than dividend yield alone. Conclusion The most important lesson, in my view, is that shareholders do not necessarily become richer because a company pays them cash. They become richer when the economic value of their ownership increases. It can happen through share repurchases made at sensible prices. It can also happen through retained earnings reinvested at high returns and compounded over many years. But sometimes the money a company doesn't pay today is the money that creates the greatest value tomorrow. That is particularly true when management has both the skill and the opportunity to reinvest capital at attractive rates for a long period. The question the investor should ask before buying a dividend stock. A dividend is not the key factor for investment. It is one possible route by which capital moves from a business to its owners. More than dividend value, investors should care about the ideal allocation of earnings, which enhances shareholders' value in future. Article By: Rajesh Adhikari
Sipradi Delivers 150 Tata Vehicles Across Nepal on Vishwakarma Puja
Sipradi Trading Pvt. Ltd., the authorized distributor of Tata Motors in Nepal, delivered 150 Tata vehicles to customers across the country on the occasion of Vishwakarma Puja. The deliveries were made through 22 Tata showrooms nationwide and included new electric models such as the Tiago EV, Punch EV, Nexon EV Reloaded and Curvv EV, along with various ICE models. Most of the vehicles were booked or launched during the NADA Auto Show and NAIMA Nepal Mobility Expo held earlier this year. Sipradi said the deliveries followed the bookings and purchase processes completed after the events. The company said growing customer interest in electric vehicles has increased demand for Tata’s latest EV models in the Nepali market.
NEPSE Index Rises by 7.06 Points ; Overall Turnover Crosses Over 7.05 Arba
The Nepal Stock Exchange (NEPSE) recorded a single-digit gain on the first trading day of this week, gaining 7.06 points (0.26%) to close at 2,654.28. This follows a 22.85-point gain in the previous trading session. The benchmark index opened at 2,650.78 and fluctuated between an intraday high of 2,662.71 and a low of 2,637.57 before settling at the close. Total turnover for the day amounted to Rs. 7.05 Arba, with 21,589,761 shares traded across 356 companies through 70,691 transactions. The total market capitalization stood at Rs. 45.65 Kharba, with a float market capitalization of Rs. 15.47 Kharba. Hathway Investment Nepal Limited (HATHY) topped the turnover chart, recording transactions worth Rs. 44.40 crores. The company’s stock closed at Rs. 489.00. Mid Solu Hydropower Limited (MSHL) led the gainer's list with a 14.99% gain. The stock closed at Rs. 606.00. Meanwhile, Snow Rivers Limited (SNORL) recorded the Highest fall, falling by 8.23%. The last traded price of the company was Rs. 970.00. Among sectors, the Others Index recorded the highest gain, gaining by 1.36%, while Trading Index recorded the highest loss, down 0.93%.