AGP Executive Report

US-Nepal Digital Push: US Under Secretary Sarah B. Rogers wrapped up a Nepal visit urging stronger partnership on digital infrastructure, telecom, cyber security, and a more predictable investment climate, also highlighting the MCC compact and US tourism ties. Budget Climate Critique: Analysts and business voices are reacting to Nepal’s FY 2026/27 budget—supporters praise tax and private-sector moves, while critics say it still underplays the climate crisis and social inclusion. Sunset Law for Faster Projects: Government drafts a “Sunset Law” aimed at speeding infrastructure by reducing repeated environmental reviews when approved plans already specify key details, after cases where projects were stalled by procedural demands. EV Tax Shock: New tax provisions for electric vehicles could raise prices sharply, with importers warning the shift from excise duty to fees may slow Nepal’s cleaner transport transition. Wetland Restoration Wins: In western Nepal, WWF-Nepal restored a degraded marshland into a multipurpose pond system, now irrigating about 25 acres for 22 families and improving farming and water security. Measles Returns: Nepal is seeing renewed measles outbreaks across multiple districts, with vaccination efforts strained by shortages and access challenges. Everest Update: Three climbers stuck at Camp 2 were airlifted to safety, though questions remain about conditions and route closures. Wildlife Note: A mountaineer in Kashmir rescued an injured Himalayan Monal and handed it to wildlife authorities for care.

Himalayan Biodiversity Breakthrough: A new study finds the “Himalayan pit viper” is actually five separate species, reshaping how Nepal and the wider Himalaya should track venomous wildlife and protect habitats. Everest & Mountain Tourism Pressure: Ascent Summit 2026 in Kathmandu brought climbers, rescue experts and tourism stakeholders together to discuss Everest safety and the future of Himalayan mountaineering—amid record crowds and ongoing environmental strain. Energy-Led Budget Push: Nepal’s FY 2026/27 budget puts hydropower and energy transformation at the center, aiming to add 1,040 MW and shift from just generating electricity to building transmission, storage, trade and reforms. EV Tax Uncertainty: Revised tax slabs for electric vehicles could sharply raise prices, threatening momentum for cleaner transport unless standards and testing gaps are addressed. Remote Connectivity for Growth: The Jogbani–Kimathanka road link is opening eastern Nepal’s isolated Bhotkhola region, with hopes for supplies, jobs and a new economic corridor. Human-Wildlife Conflict & Disaster Relief: Lawmakers demanded urgent help for flood-affected families and action against wildlife invasions, including boar attacks and displacement risks. Press Freedom & Public Trust: Editors and journalists called for responsible, fact-based reporting as complaints of false news rise—important for environmental governance and disaster response. Health Insurance Restructure: Nepal plans to restructure national health insurance to prevent misuse and keep it sustainable, with implications for how services reach vulnerable communities.

VAT Lottery Push: Finance Minister Swarnim Wagle says every VAT bill will become an automatic lottery ticket, including remittance-linked purchases, aiming to boost invoice demand and cut tax evasion. Budget Reform, Growth Claims: Nepal unveiled a $13.8bn/2.1tn-rupee reform budget after political shift, promising infrastructure, tech, health and education, plus consumption-based tax tweaks and a small electricity levy for energy expansion. Capital Market Shake-up: Budget moves Capital Gains Tax on listed securities to “final tax” for individuals, but hikes short-term CGT to 10% and long-term to 7.5%, drawing mixed investor reactions while also signaling NEPSE modernization and easier NRN participation. Infrastructure vs Ecology: A “Mission Mode” push targets faster delivery, with Rs 286.48bn for roads and urban works—1,000km blacktopping and 275 bridges—raising the stakes for slope safety, drainage, and wildlife habitat protection. Floods, Wildlife Conflict: Lawmakers demanded relief for disaster-hit families and people facing wildlife invasions, including flood displacement in Bajura and boar attacks in Dailekh. Himalayan Risk Reminder: Commentary highlights how climate stress and fragile terrain make Himalayan roads vulnerable—an urgent backdrop to the new build-and-upgrade plans. Sagarmatha Day Abroad: Nepal marked Everest Day in the US, linking identity and pride with calls for tourism and environmental protection. Wildlife Recovery Watch: India’s vulture comeback—700+ birds bred and phased releases—shows how safe food and banning harmful veterinary drugs can restore threatened species.

International Potato Day: Nepal marked International Day of the Potato under FAO’s theme “Where Potatoes Grow, Livelihoods Thrive,” highlighting how the crop supports food security, nutrition, and jobs across small farms and commercial fields. EV Policy & Air-Impact: Nepal’s EV tax rules are shifting after the budget—moving from motor “peak power” to customs-value based charges—raising concerns over testing standards and how the new system could affect EV prices and uptake. Foreign Investment Reforms: The federal budget also pushes business climate changes, including easier foreign investment profit repatriation and NRN access to the secondary securities market, aiming to reduce regulatory bottlenecks. Himalaya Climate Diplomacy: Nepal’s embassies in Brussels and Seoul held Everest Day dialogues linking climate change to Himalayan impacts and calling for stronger international cooperation and adaptation planning. Wildlife Science: Researchers report that a “Himalayan pit viper” once treated as one species is actually five distinct species, underscoring how much biodiversity remains to be mapped. Everest Safety Watch: Reports say three Everest climbers remain stuck in Camp 2 after helicopter access was blocked by clouds, with rations and fuel reportedly thinning. Women’s Rights: Minister Sita Badi stressed equal access for women in decision-making, alongside programmes expanding women’s education, health, jobs, and social security.

Urban Governance: Kathmandu’s Old Bus Park “View Tower” redevelopment remains frozen, with the problem now squarely about governance and accountability rather than design or engineering. Disaster Recovery & Local Services: Japan and UNDP handed over prefabricated buildings to Nalgad Municipality in Jajarkot to restore ward offices, immunization centers, and police posts after the 2023 earthquake. Himalayan Climate Diplomacy: Nepal’s Everest Day events in Brussels pushed for stronger climate action in the mountains, stressing implementation of the National Adaptation Plan and system-wide support. Smart Mobility in Kathmandu: A pilot “faceless” traffic management system in Thapathali uses AI and CCTV to detect violations from a control room, aiming to reduce on-road policing. Budget 2026/27—Environment & Forests: The government allocated Rs12.31 billion for forests, environment and climate, linking conservation to green industrialisation, digital permits, community forest autonomy, and valuation of forest carbon and ecosystem services. Wildlife & Biodiversity: A new study shows the “Himalayan pit viper” is actually five separate species, revealing hidden diversity in high-elevation habitats. Public Health & Climate: A study links climate change to rising antibiotic resistance in Salmonella, raising the risk of harder-to-treat food poisoning. Everest Season Pressure: Everest Day also coincides with the climbing season’s end, but some climbers remain at Camp 2 as weather and safety concerns continue.

Budget & Environment: Nepal unveiled a Rs 2.124 trillion reform budget for FY 2026/27, including Rs 12.31 billion for forest, environment and climate, plus urban planning steps to protect open public spaces. Climate-Linked Health: In Jajarkot, a refurbished Bhur climate-resilient health post was inaugurated with Japan/UNFPA support, with disaster-ready equipment and adaptation guidelines for local health management. Himalaya Under Pressure: On Everest Day, Nepal marked 73 years since the first ascent while renewing calls for stronger mountain conservation as overcrowding, waste and climate impacts intensify. Hydropower Progress: Upper Trishuli-1 (216MW) marked a key milestone with successful operation of its upgraded weir gate in Rasuwa, attended by the Korean ambassador. Biodiversity Watch: Scientists reported a new rock-clinging catfish species from Nagaland’s Likimro River, underscoring how much freshwater biodiversity in the region remains undocumented. Policy & Investment Signals: The budget also proposes a sovereign wealth fund using part of foreign exchange reserves and “mission mode” infrastructure delivery, alongside steps to ease foreign investment exit rules.

Climate-Resilient Health: Nepal, UNFPA and Japan unveiled the refurbished Bhur Health Post in Bheri Municipality, Jajarkot, upgrading maternal and newborn care with climate-adaptation planning and emergency-ready supplies. Hydropower & Water Infrastructure: Korea’s ambassador attended the weir gate operation ceremony for the 216MW Upper Trishuli-1 (UT-1) project in Rasuwa, marking a key construction milestone in Nepal-Korea energy cooperation. Protected Areas vs Energy: IPPAN urged the Environment Minister to resume halted hydropower works inside Langtang National Park, arguing delays discourage investors despite approved environmental impact assessments. Everest Under Pressure: On International Everest Day, activists and stakeholders renewed debate over summit permits amid record climbing, overcrowding, waste and pollution concerns. Heat Stress in Kathmandu: Reports highlight how rising extreme heat is worsening working conditions for Kathmandu’s informal workers, with more frequent dizziness and health risks. Water Heritage: A new look at Kathmandu Valley’s stone spouts and ponds shows how many have perished or now run only seasonally, threatening a centuries-old urban water network. UN Peacekeeping: The UN marked Peacekeepers’ Day, stressing growing need for peacekeeping while warning that funding and staffing have fallen to a 25-year low.

Heat stress in Kathmandu: Outdoor informal workers say extreme heat is worsening their working conditions, forcing more breaks and causing dizziness and headaches as climate patterns shift. Himalayan biodiversity: A new study reports three previously undocumented Himalayan pit viper species in Pakistan and Nepal, underscoring how little-explored high mountain ecosystems still hold major wildlife surprises. Everest sustainability: Nepal President Ramchandra Paudel urged sustainable mountaineering and action on global warming and garbage in Everest areas, as the Everest Summiteers Summit highlights conservation as key to tourism. Tourism pressure points: Nepal’s tourist spending fell 19% even as arrivals rose slightly, with higher travel costs leaving visitors with less money for recreation and shopping. Black carbon push: Climate Visuals and Clean Air Fund launched 200+ new black carbon photos from Kenya, Nepal and Nigeria, spotlighting a major climate-warming pollutant. Energy and environment: Nepal’s energy minister warned that rising electricity generation must be matched by higher domestic consumption to avoid future debt risks, while transmission expansion aims to prevent wastage.

Cooperatives Under Pressure: A government commission says Nepal’s cooperative sector is sliding toward crisis due to financial irregularities, weak regulation, and poor governance, warning that multi-level oversight and limited capacity in the Cooperative Department are blocking effective monitoring. Energy Use & Debt Risk: Energy Minister Biraj Bhakta Shrestha urged faster growth in domestic electricity consumption, saying power generation is rising but usage is lagging—raising future debt risks unless transmission and demand expansion move together. Health Insurance Crisis: Major hospitals have suspended services under Nepal’s health insurance scheme after unpaid claims reportedly reached about Rs 10.5 billion, while proposals suggest earmarking taxes from tobacco, alcohol and sugary products to rescue the programme. Everest Season Nears Peak: Nepal’s record-breaking Everest season is closing with 950+ summits already, as officials cite a wider summit weather window and note climate change impacts and waste concerns in the Everest region. Wildlife Habitat at Risk: A WWF Nepal mapping study flags 515 biodiversity important areas overlapping with roads, rail and power lines, warning infrastructure could fragment wildlife corridors outside protected zones unless safeguards are built in early. Biodiversity Targets (30x30): Nepal is considering expanding protected land from 23% to 30% under the Kunming–Montreal global biodiversity goal, with debate over how to protect ecosystems beyond traditional protected areas. Digital Push: Nepal’s telecom and ICT push continues, with officials highlighting digital transformation priorities and Ncell announcing ISO 9001 and ISO 14001 certifications for quality and environmental management.

Himalayan Climate & Tourism Safety: Nepal’s President Ramchandra Paudel and tourism officials used the Everest Summiteers Summit to warn that global warming and mountaineering waste are now core risks, pushing for safer, more sustainable climbing and stronger emergency rescue. Everest Season Pressure: Nepal says a record-breaking spring season is nearing its end, with 950+ summits already and a possible 1,000+ total, while climbers and guides debate crowding and call for tighter permit limits. Wildlife Habitat Under Threat: A WWF Nepal mapping study flags 515 biodiversity important areas overlapping with roads, rail and power lines, warning infrastructure expansion could fragment wildlife movement corridors outside protected zones. Red Panda Health Check: In Myagdi, BIOCOS has started stool-sample testing and camera-trap work in Jaljala and Dhorpatan Hunting Reserve to assess parasites and estimate red panda numbers. Fertiliser Supply Watch: In parliament, agriculture officials and lawmakers pushed for timely chemical fertiliser availability for farmers, while the ministry also discussed options like India procurement and longer-term alternatives. Green Standards in Industry: Ncell announced ISO 9001 and ISO 14001 certifications, framing them as quality and environmental responsibility steps for a “greener Nepal.”

Japan-backed recovery: Japan handed over a new 12-room classroom building to Bheri Tribeni Secondary School in Jajarkot, restoring learning after the 2023 earthquake collapse. Farmers get paid: DDC cleared Rs 120 million to dairy farmers, though Rs 460 million still remains due. Mountain protection push: President Paudel told Everest summiters that sustainable, responsible mountaineering and Himalayan conservation are urgent as warming and garbage worsen. Climate-smart farming: An agricultural weather station was set up in Rautahat to give early warnings and guide planting, irrigation, and fertilizer use. Biodiversity work: A red panda health study began in Myagdi using fecal checks and camera-trap data. Policy and power: PM Shah met EU ambassadors, stressing visible improvements and policy continuity; energy experts urged storage and a broader power mix. Monsoon toll: Nepal’s monsoon disasters killed 3,074 people over the last decade, with landslides the biggest driver. Tourism with rules: World Environment Day play “Earth 2.0 Loading” is set for Pokhara, aiming to spark conservation awareness.

EU-Backed Budget Talks: PM Balendra Shah met EU ambassadors and mission heads in Kathmandu, promising “clear, stable, predictable” policy continuity and visibly better daily living standards as the government finalizes the next budget. Green Tax Push: The Finance Ministry is preparing a unified “green tax” by merging scattered fuel and pollution charges, aiming to remove duplicated levies and streamline rates. Urban Power Upgrade: NEA plans an 11.92 km, 132-kV underground transmission line in central Kathmandu (Balaju to Singha Durbar via Maharajgunj, Ratna Park and Narayanhiti) to cut visual clutter and meet rising demand. Tourism Strategy: Nepal Tourism Board and UNDP are drafting a 2026–2030 shift from volume to value-based sustainable tourism. Everest Warning: A fresh debate is reigniting after record one-day summits, overcrowding in the “death zone,” and calls for tighter permit control and qualified climbers only. Health & Safety: A new report flags lethal humidity risks for the region, while separate coverage highlights ongoing public health concerns like hantavirus and medicine pricing pressure.

Hantavirus Watch: Nepal’s latest health concern is a reminder of how fast zoonotic risks can travel—after a hantavirus outbreak on the Dutch cruise ship MV Hondius (11 infected, 3 deaths), passengers and crew were retested, the ship was disinfected, and the situation was brought under control. Drug Prices & Policy Pressure: In Kathmandu, lawmakers and domestic pharma firms are clashing over medicine pricing and imports, with claims that outdated ceilings are squeezing manufacturers and pushing billions in irregularities. Road Resilience: Construction is set to restart on flood-damaged Sindhuli Road with Japan’s support—groundbreaking held for emergency rehabilitation after September 2024 rains. Co-op Scam Drag: The Rs 21 billion GB Rai cooperative fraud deepens as he remains at large, while companies linked to him reportedly keep operating. Cost-of-Living Strain: Fuel and staple prices are rising amid West Asia tensions, and Nepal’s response is still seen as too weak. EU Diplomacy: EU ambassadors arrive for talks with Nepal’s leadership, including a push to support aviation safety progress.

EU Diplomacy in Kathmandu: 22 EU ambassadors and deputy heads of mission arrived for a two-day push with Nepal’s new government, meeting PM Balendra Shah and Foreign Minister Shisir Khanal, with talks also covering aviation safety, trade, climate action, and investment. Budget Squeezes Development: Nepal is preparing to cut the size of the national budget and lower ministry ceilings for the coming fiscal year, with sharper reductions flagged for infrastructure, energy, drinking water and agriculture, while administration and security see increases. Farmers Get Paid: Nepal’s Dairy Development Corporation says it is paying dairy farmers Rs 10 million daily to clear arrears, with remaining dues planned in installments by end-June. Energy Focus: The energy minister is urging faster reservoir-type hydropower projects as a climate-proof backbone for power, water storage, flood control and irrigation. Clean Cooking in Madhesh: A clean-cooking push is shifting communities from biomass to electric cooking through local trust and adoption support, not just stove distribution. Everest Climate Science: A China-Nepal team extracted the first full-depth ice core from Everest’s summit to track ultra-high-altitude climate change. Heat and Pollution Watch: India’s “Nautapa” heatwave is back, while toxic air remains a major health risk across the region.

Hydropower Push: After visiting Kulekhani, Energy Minister Biraj Bhakta Shrestha said reservoir-type projects are now a “high priority,” calling them the backbone for power during peak hours plus water storage, flood control, irrigation and even tourism—especially as climate change makes rainfall erratic and raises glacier-risk. EU Diplomacy: 22 EU ambassadors and deputy heads of mission arrived for a two-day mission, meeting Nepal’s PM and key ministers to reaffirm support and explore cooperation on trade, investment and climate action. Plastic-to-Roads Debate: “Rubbish roads” are gaining attention as some cities test roads partly built with shredded plastic, aiming to cut waste and improve surfaces—though long-term drawbacks are already being flagged. Wildlife & Tourism: Koshi Tappu Reserve welcomed 11,603 visitors this fiscal year so far, while a tiger census is underway in Rautahat. Heat Stress: Western Tarai heat hit 40°C, with hospitals reporting heavy caseloads of heat-related illness and some municipalities closing schools briefly.

UK–Nepal Education Push: Visiting UK Minister Seema Malhotra says Britain is willing to expand cooperation with Nepal on technical education, linking skills to jobs and entrepreneurship during a high-level Kathmandu meeting. Heat Emergency in the Western Tarai: Temperatures in Nepal’s western plains are hitting 40°C, with Nepalgunj’s Bheri Hospital treating around 100 heat-illness patients daily and schools in Krishnapur Municipality shut for three days. Everest Science & Safety Signals: China–Nepal teams report the first full-depth ice core extraction from Everest’s summit, while India’s NSG “Black Cats” also complete a fast summit push—yet Everest crowding and deaths remain a live concern. Conservation on the Ground: Manaslu Conservation Area begins trap-camera monitoring to track causes of rising livestock attacks. Tourism Shift: Chitwan National Park sees domestic tourism rise while SAARC and third-country visitors fall. Governance & Rights: Nepal tells the UN it’s deferring LDC graduation amid economic risk and uncertainty. Public Transport Security: A “luggage tag” system is set to start on long-distance vehicles from May 29 to curb bag loss and theft.