MCA-Nepal marks the start of upgradation of 40km Dhan Khola to Lamahi section of East-West Highway

Millennium Challenge Account Nepal (MCA-Nepal) today marked the commencement of the upgrading of the 40km Dhan Khola-Lamahi section of the East-West Highway. The road upgrading and maintenance works will, for the first time in Nepal, apply Full Depth Reclamation and Superpave as modern construction methods that offer important gains in quality, durability, and sustainability, according to MCA-Nepal.
By creating a stronger and longer-lasting road surface, reusing existing asphalt materials, and reducing environmental impacts, these approaches will help deliver a more reliable and cost-effective investment over the long term, a press note issued by the MCA-Nepal reads. "The project will also widen the road to 12 meters, with a 7-meter carriageway and 2.5-meter shoulders on both sides."
Addressing the event, the Chief Minister of Lumbini Province Chet Narayan Acharya, welcomed the use of modern technologies like FDR and Superpave, which will ensure better quality and longer-lasting roads. “This is a major step forward for our province and the people who rely on this highway every day," he said, adding that the upgrading of the road section will not only make travel safer and more reliable, but also open up new opportunities for local businesspeople, farmers, and entrepreneurs.
Similarly, Charge d'Affaires ai at the US Embassy Scott Urbon said, “Today’s launch of the Dhan Khola-Lamahi road upgrade marks an important milestone in the partnership between the United States and Nepal."
Through the MCC Nepal Compact, we are investing in high-quality, durable infrastructure that will lower transportation costs, improve safety, and connect communities to markets and opportunities, he said, further adding, “This project reflects our trust in Nepal’s future and our joint dedication to sustainable economic growth.”
Speaking at the event, Joint Secretary at the Ministry of Physical Infrastructure and Transportation and MCA-Nepal Board Member Sushil Babu Dhakal expressed, “As a Board member, I am pleased to highlight that MCA-Nepal’s investments are designed to complement the Government of Nepal’s plans and programs."
This collaboration reflects our shared commitment to building resilient infrastructure and expanding economic opportunities for our communities, he said, appreciating the efforts of all involved and look forward to the timely completion of this important project.
The MCC Deputy Resident Country Director Sanjay Poudyal, on the occasion, remarked that this milestone reflects MCC’s commitment to supporting Nepal in building resilient, cost-effective infrastructure using advanced technologies that ensure long-term performance.
"The commencement of works on the Dhan Khola-Lamahi section marks a significant step in implementing the Road Maintenance Project under the MCC Nepal Compact," said MCA-Nepal Executive Director Khadga Bahadur Bisht said. "MCA-Nepal remains committed to delivering this project efficiently, transparently, and to the highest quality standards," he said, adding, “I would also like to recognise the continued support from the Government, Millennium Challenge Corporation (MCC) and our key stakeholders, the Ministry of Physical Infrastructure and Transport, the Department of Roads, and the MCA-Nepal Board.”
The Road Maintenance Project is a key component of the MCC Nepal Compact, aimed at lowering transportation costs and improving road conditions across Nepal.

Nepal-China seal 11 billion second phase Ring Road expansion deal

The long-awaited second phase of Kathmandu Ring Road expansion is going to begin following a formal agreement signed today between the Government of Nepal and the People’s Republic of China.
Under the agreement, the Chinese government will provide a grant of approximately Rs 11 billion to upgrade the 8.2-kilometer road from Kalanki to Basundhara. The project includes widening the road to eight lanes and constructing several new bridges and pedestrian overpasses, according to a press note issued by the Ministry of Physical Infrastructure, Transport, and Urban Development.
The agreement was signed at the Ministry by Minister for Physical Infrastructure, Transport, and Urban Development Sunil Lamsal and Chinese Ambassador to Nepal Zhang Maoming. This phase follows the successful completion of the first section-the Koteshwar-Kalanki stretch-which was also built with Chinese assistance, it reads.
Speaking after the ceremony, Minister Lamsal emphasized a new 'zero-delay' approach to the construction. "The government has prioritised north-south connectivity as a national goal," he said, adding, "I am personally committed to ensuring that any administrative or technical hurdles arising during implementation are resolved within 24 hours to keep the project on track."
"The agreement related to assistance under the second phase of the Ring Road expansion has been completed today," he said, adding that the assistance agreement was signed with the Chinese Ambassador to Nepal Zhang Maoming. "On behalf of the government, a commitment has been expressed to resolve any problems arising during the project’s implementation within a day and to provide necessary facilitation."
Ambassador Maoming echoed the sentiment of cooperation, stating that the project serves as a cornerstone of bilateral infrastructure ties. He added that Chinese investors are increasingly looking at Nepal's energy and transport sectors, provided the 'suitable investment environment' continues to improve.
The Department of Roads confirmed that the expansion will address previous design concerns by incorporating modern medians, streetlights, and disabled-friendly overhead bridges. With the agreement signed, a Chinese technical team is expected to arrive at the site shortly, the press note adds.

Japan and UNDP partner to strengthen urban resilience to climate risks in Nepal

As part of UNDP’s global 'Climate Promise' initiative, the Government of Japan and the United Nations Development Programme (UNDP) launched a new $1.296 million 'Smart Buildings and Green Infrastructure for Improved Human Security and Sustainable Development' project to strengthen urban resilience to rising climate risks in Dhangadhi Sub-Metropolitan City (DSMC).
The launch event was led by Ambassador Extraordinary and Plenipotentiary of Japan to Nepal Toru Maeda and Resident Representative of UNDP in Nepal Kyoko Yokosuka.
Nepal is warming at nearly twice the global average, with urban areas facing increasing risks, according to a press note issued by UNDP. "In Dhangadhi, temperatures frequently exceed 40°C during recurrent heatwaves from May to August," it reads, adding that rapid and unplanned urbanisation, shrinking green spaces, and limited energy-efficient infrastructure are intensifying impacts on health, livelihoods, and essential services, particularly for low-income households and outdoor workers.
Speaking at the event, Ambassador Maeda reaffirmed Japan’s commitment to advancing climate resilience in Nepal, particularly for communities most vulnerable to climate risks. He expressed hope that the project would enhance urban resilience to extreme heat in Dhangadhi through integrated urban heat management solutions. He also noted that this year marks the 70th anniversary of diplomatic relations between Japan and Nepal, and emphasised that the project would further strengthen the long-standing partnership between the two countries.
"Through this partnership, UNDP is advancing practical solutions to urban heat in Dhangadhi, including thermal retrofitting of public buildings and community infrastructure, restoring urban wetlands, and promoting nature-based cooling solutions," Yokosuka said, adding, "These approaches are designed to be scaled and replicated across cities facing similar risks."
The project will demonstrate integrated climate solutions in Dhangadhi, combining infrastructure, planning, and local capacity to address rising heat risks. It is expected to directly benefit around 4,000 people-at least half of them women-while contributing to longer-term efforts to build more inclusive and climate-resilient cities in Nepal.

Nepal’s RSP majority eases near-term political risk, policy agenda key: Fitch Ratings

The clear parliamentary majority for Nepal’s Rastriya Swatantra Party (RSP) reduces near-term political uncertainty and provides an opportunity for enhanced policy predictability and implementation of governance and economic reforms, according to a press note issued by the Fitch Ratings. "The election result should lower the risk of a prolonged coalition negotiation after severe unrest last year, reduce the chance of a recurrence of recent years’ frequent government changes and potentially boost investor sentiment over time if signals point to tangible improvements in governance and economic reform delivery," it adds.
The scale of the RSP’s victory reflects a voter mandate to break with the status quo politics of power sharing, with the Nepali Congress (NC) and the Communist Party of Nepal-Unified Marxist-Leninist (CPN-UML) losing seats. A single-party majority, subject to final certification by the Election Commission (EC), should imply a short political transition and could improve Nepal’s ability to sustain reform momentum and translate hydropower-led investment into broader-based growth.
The RSP targets average real GDP growth of about 7 percent over the next five years, raising per capita income above $3,000, which we believe is ambitious. The new government’s policy agenda will be key in determining the extent to which growth can be lifted from our current forecast of 4.5 percent in the fiscal year ending 15 July 2027.
The RSP’s manifesto and announcements indicate it is aiming for policies that would lead to productivity gains, formal job creation to curb emigration, and higher private-sector-led investment in infrastructure, agriculture, service, digital and innovative industries.
When Fitch affirmed Nepal’s ‘BB-’ rating with a Stable Outlook in November 2025, "we stated that strong, sustainable growth, enabling substantial increases in GDP per capita - potentially supported by improved governance standards and regulations conducive to private and foreign investment - could improve Nepal’s credit profile," it further reads.
However, implementation capacity could be a key risk down the road, it says, adding that Nepal’s weak government effectiveness and regulatory quality scores compared with its peers could constrain execution, for instance, if reform sequencing is unclear or governance outcomes lag behind campaign expectations. "Private investment and foreign participation are likely to hinge on measurable improvements in the business environment and accountability frameworks, alongside sustained anti-corruption enforcement under the new government."
Nepal’s ‘BB-’ rating is supported by low and highly concessional government and external debt burdens, strong external liquidity, and solid medium-term growth prospects anchored by hydropower, with resilience reinforced by successful IMF programme implementation. Constraints remain the underdeveloped economy’s exposure to external shocks and natural disasters, and weaker structural features - especially GDP per capita and governance metrics - than ‘BB’ category peers.

ADB supports Nepal’s digital transformation toward high‑impact services

The Asian Development Bank (ADB) has approved a $40 million concessional loan to help Nepal accelerate its digital transformation agenda and expand access to high‑impact digital services for citizens and businesses.
The Nepal Digital Transformation Project - the first in South Asia to be co-financed under the ADB–World Bank Full Mutual Reliance Framework (FMRF) - will strengthen the country’s data hosting and cybersecurity infrastructure to enhance government-wide digital security and resilience, along with core digital public infrastructure for modern, user‑centric services, according to a press note issued by the ADB. "It will support key initiatives such as developing an integrated citizen service portal, improving the national social registry, establishing a secure government-wide data exchange platform for safe and efficient information sharing, and digitalizing about 11 high‑impact government services, according to a press release issued by the multilateral lender."
“Digital transformation is no longer optional - it is critical for improving public service delivery and supporting Nepal’s economic development,” said ADB Country Director for Nepal Arnaud Cauchois. “The reforms supported by ADB and the World Bank will make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes - helping build greater trust between citizens and public institutions.
The project will be implemented by Ministry of Communications and Information Technology. It aligns with Nepal’s Digital Nepal Framework 2.0, Sixteenth National Plan, e‑Governance Blueprint, and ADB’s country partnership strategy for Nepal, 2025–2029, which identifies digital transformation as a core crosscutting priority, the press note reads.
The FMRF is an innovative co-financing arrangement between ADB and the World Bank designed to streamline project preparation, reduce duplication, and deliver faster and more effective development support. The World Bank is the lead lender for the Nepal Digital Transformation Project, approving its $50 million concessional loan in February this year.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members - 50 from the region.

World Bank approves $50 million Digital Transformation Project

The World Bank’s Board of Executive Directors today approved $50 million in financing to boost Nepal’s digital public infrastructure and digitise public services, fundamentally changing how services are delivered to the people.
The Nepal Digital Transformation Project will invest in digital platforms including an integrated online citizen service portal and an integrated social registry; a secure government-wide data exchange; and a digital locker to manage verifiable credentials and digital wallet, according to a press note issued by the World Bank. "The project will also help digitise high-impact services including land administration with other services being added in a phased approach," it reads, adding that the project aims to boost private sector investment in the data infrastructure market by improving legal and regulatory frameworks. "To promote trust in the digital economy, the project will invest in electronic signatures, cybersecurity, and data governance."
“By investing in core digital platforms and digitalising services, this project will help deliver enhanced services to people and businesses in an inclusive and transparent manner thereby improving service delivery, public sector efficiency, and good governance,” said World Bank Division Director for Maldives, Nepal, and Sri Lanka David Sislen.
The project will be financed under a joint co-financing arrangement between the World Bank and the Asian Development Bank (ADB) under the Full Mutual Reliance Framework. The World Bank is the lead lender while the ADB will serve as the trail lender and contribute $40 million. ADB’s management is expected to present the project to their Board for consideration in March 2026.
The project will be implemented by the Ministry of Communications and Information Technology and Department of National ID and Civil Registration.

World Bank approves $95 million to support sustainable and inclusive finance

The World Bank’s Board of Executive Directors approved a $95 million operation to help expand access to finance for more than 100,000 small and medium enterprises (SMEs) and promote job-led growth in Nepal.

“This operation will strengthen Nepal’s Deposit and Credit Guarantee Fund (DCGF) to expand risk-sharing, enhance financial sustainability, and introduce new guarantee products for underserved segments such as women-led businesses,” said World Bank Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “By easing access to finance and reducing transaction barriers, the operation will broaden financial inclusion, support the integration of MSMEs into regional and global value chains, and foster job creation and private sector–led growth."
The Sustainable and Inclusive Finance Project (SIF) builds on reforms supported under the World Bank financed Financial Sector Stability and Finance for Growth Development Policy Credit (DPC) series, concluded in 2024, which prioritised access to finance for underserved segments as a key pillar.
Complementing these efforts, the project will invest in technology and institutional capacity of the Credit Information Bureau of Nepal (CIBN) to expand data coverage, integrate alternative data sources, and enhance data security and privacy. The International Finance Corporation has been supporting CIBN in this endeavor. The project also aligns with the Government of Nepal’s recently approved second Financial Sector Development Strategy, according to the World Bank.
“Inadequate collateral and limited credit histories have long constrained SMEs’ access to affordable finance while limiting lenders’ ability to accurately assess credit risk,” said Senior Financial Sector Specialist for South Asia Region, and Task Team Leader for the operation Sabin Raj Shrestha. "The DCGF will be strengthened by upgrading its management information system, improving claims-settlement efficiency, and transitioning to risk-based pricing and first-loss coverage."

IOM supports government to strengthen capacity for climate change negotiations

The International Organisation for Migration (IOM) Nepal, in collaboration with the Ministry of Forest and Environment, organised a three-day capacity building training on climate change negotiations for Government Officials from 25 to 27 January. The initiative aimed to enhance Nepal’s preparedness and strategic engagement in international climate negotiations under the United Nations Framework Convention on Climate Change (UNFCCC).
Nepal is among the countries most vulnerable to impacts of climate change due to its fragile ecosystems and an economy highly dependent on climate-sensitive sectors such as tourism, agriculture, water resources, and forestry, according to a press note issued by the IOM. "As climate-related hazards intensify, they are increasing economic stress, disrupting livelihoods, and slowing developmental progress," it reads, adding that these pressures are also directly impacting climate-induced displacement across communities. "Despite this growing scale and complexity of climate-related mobility, global climate governance and policies have not yet fully integrated into these issues, limiting opportunities for comprehensive and people-centred climate action."
IOM Chief of Mission in Nepal Helene Fors, on the occasion, echoed the importance of strengthened advocacy on the concerning issue of climate mobility in Nepal on global platforms. “Together, we can ensure that Nepal’s voice, particularly on climate vulnerability, climate finance, and human mobility is clearly heard on the global stage,” she said.
The training brought together government officials from key institutions, including Ministry of Forests and Environment; Ministry of Home Affairs; Ministry of Foreign Affairs; Ministry of Labour, Employment and Social Security; National Planning Commission; National Disaster Risk Reduction and Management Authority; and National Human Rights Commission and others.
The programme focused on enhancing participants’ understanding of substantive and procedural issues under the UNFCCC process, strengthening inter- ministerial coordination and collaboration, promoting knowledge-sharing and building practical negotiation skills. Particular emphasis was placed on the nexus between climate change, environmental degradation, and human mobility.
This initiative lays a foundation for more future initiatives to strengthen national climate action response through an informed, coordinated and strategically prepared national negotiation team, supporting effective participation and influence in upcoming UNFCCC processes, including the Bonn Climate Sessions, the 31st Session of the Conference of the Parties (COP31), and future negotiations.
Joint Secretary at the Ministry of Forests and Environment Maheshwar Dhakal, on the occasion, encouraged participants to make full use of the three-day training and further enhance their negotiation skills, noting that “Negotiation is a vital skill, not only within the context of climate change and the UNFCCC process, but also in our everyday lives."
Through this capacity-building initiative, IOM reaffirmed its commitment to supporting Nepal in addressing critical intersections of climate change, human mobility and sustainable development, while advancing the recognition and integration of human mobility considerations within national climate action and policy frameworks.
This event was organised under the project 'Nepal: Promoting a Human Security and Gender Equality- Based Approach to Migration and Adaptation to Climate Change,' supported by the IOM Development Fund. It aligns with the project’s overarching objective of supporting Nepal in responding to the challenges across the Migration, Environment and Climate Change nexus.

IMF sets stage for major anti-corruption reform plan in Nepal

An International Monetary Fund (IMF) technical assistance mission, led by Jonathan Pampolina, successfully concluded its scoping visit to Kathmandu yesterday (January 21).
The 10-day mission, which began on January 12, was conducted at the request of the Nepali authorities to lay the groundwork for a comprehensive Governance and Corruption Diagnostic (GCD).
The diagnostic is designed to identify governance weaknesses and corruption vulnerabilities that are critical to Nepal’s macroeconomic stability. The final goal is to create a prioritized and sequenced action plan to strengthen the country's state functions and integrity.
What are the focus areas of the diagnostic?
The mission utilized the IMF 2018 Enhanced Governance Framework to target core state functions, specifically focusing on Fiscal Governance, Financial Sector Oversight, Rule of Law, strengthening anti-money laundering and countering the financing of terrorism and Anti-Corruption Framework.
The IMF team held extensive consultations with a broad spectrum of state institutions, including the Ministry of Finance, Nepal Rastra Bank (NRB), the Supreme Court, and the Commission for the Investigation of Abuse of Authority (CIAA). To ensure a holistic perspective, the mission also met with business associations, civil society organizations, and international development partners.
The IMF staff praised the Nepali government's commitment to the diagnostic process. A full GCD mission is scheduled for the coming months to finalize reform recommendations. The process will culminate in a comprehensive report analyzing the severity of corruption and providing a roadmap for reforms intended to boost Nepal’s economic outcomes and institutional resilience.

UNRC-Nepal Hanaa Singer-Hamdy awarded the Recognition Award 2025

The Ambassadors Club Nepal has honoured United Nations Resident Coordinator-Nepal (UNRC) Hanaa Singer-Hamdy with the ‘Recognition Award 2025’ in a special ceremony held on Monday at its office premises in Bishalnagar.
The President of the Ambassadors Club Nepal, Amb Dr Sarmila Parajuli Dhakal, announced the recognition award to UNRC-Nepal Chief Hanaa. “In recognition of her (Hanaa’s) distinguished leadership, dedicated service, and lasting contribution to Nepal’s development journey, the Ambassadors Club Nepal will present the Recognition Award 2025 to Her Excellency Hanaa Singer-Hamdy,” President Dr Parajuli, who is also a former ambassador to Spain and Oman, added.
On behalf of the Ambassadors Club, Law and Human Rights Secretary at the Office of the Prime Minister and Council of Ministers Pushkar Sapkota presented the Award to Hanaa. This is the first award given by the Ambassadors Club Nepal, which will award ambassadors, diplomats, and heads and officials of international organisations on a yearly basis. The Ambassadors Club Nepal said the honour reflects its sustained commitment to strengthening development cooperation and fostering positive change in Nepal. The award is selected by the jury committee of the Ambassadors Club Nepal.
After receiving the award, UNRC-Nepal Hanaa thanked the Ambassadors Club Nepal and President Amb Dr Parajuli. “Thank you very much for honouring me. This is amazing-what you’ve done, always so graceful and always so appreciative,” Hanaa said, adding, “Nepal for me is my Maitighar (mother’s home). I have been coming to Nepal since 1997. I have visited Nepal around seven or eight times, and I have lived and worked in Nepal for around six years. I have travelled to over 54 districts, and I have been overwhelmed by emotions.”
She said that she always comes back to Nepal because there is some magic in Nepal that can only be found here, and part of that magic is the people.
During the award ceremony, ambassadors, diplomats, government officials, officials from other diplomatic missions, and leaders of private sector were also present.
Ambassadors Club Nepal is a prestigious non-profit and non-partisan space, serves as a unique platform where diplomatic missions converge to foster friendship, trust, and meaningful dialogue. It celebrates the art of diplomacy, nurtures collaborative partnerships, and cultivates a spirit of shared purpose that extends beyond borders; a space built on friendship, trust, and dialogue. 

Has govt endorsed money laundering of cooperative fraud ?

While cases related to cooperative fraud and money laundering are still under judicial and investigative review, a recent controversial decision by the government has pushed Nepal into deeper risk under international anti-money laundering scrutiny.
Analysts warn that Nepal, already on the Financial Action Task Force (FATF) ‘grey list,’ could now be heading toward the far more damaging ‘black list.’
Nepal is currently classified by FATF as a ‘jurisdiction under increased monitoring,’ which means ‘grey list’. However, concerns intensified after the Office of the Attorney General (OAG) decided to amend charge sheets in cases involving Rastriya Swatantra Party (RSP) chair Rabi Lamichhane, his business partner and fugitive GB Rai, altogether 153 accused of cooperative fraud and money laundering. The move has raised fears that international confidence in Nepal’s commitment to fighting illicit finance is eroding.
The present civilian government, led by former Chief Justice Sushila Karki and formed in the aftermath of the Gen-Z protests of September 8 and 9 protests – that claimed the lives of 76 young demonstrators demanding good governance – now finds itself engulfed in a serious moral and legal crisis, largely due to decisions taken by its chief legal advisor.
Those protests were driven by calls for transparency, accountability, and the rule of law. Yet critics argue that the very government formed out of that movement has undermined its spirit. Attorney General Sabita Bhandari, appointed by the Karki administration, has issued a series of controversial decisions that many say strike at the core of judicial integrity.
And one of them is damaging to the country also. Most recently, on Thursday and Friday, Bhandari ordered amendments to charge sheets in money laundering and organised crime cases filed against Rabi Lamichhane, GB Rai – chair of Gorkha Media – and more than hundred others implicated in a major cooperative fraud scandal.
The decision is against the Section 36 of the Criminal Procedure Code, according to legal experts, who say that the OAG has misinterpreted it to alter cases that are already under judicial consideration.
Initially, the Attorney General sought to revise charges only against Rabi Lamichhane. However, citing legal complications in treating defendants differently within the same charge sheet, she ultimately removed organized crime and money laundering charges against all 153 accused linked to five cooperatives associated with Lamichhane. This decision also benefited fugitive suspect GB Rai, who according to Rabi Lamichhane also was the mastermind behind the fraud of billions.
AG Bhandari amended all accused charges as amending charges for only one accused in a case involving multiple defendants could have led to rejection by the court. As a result, even serious allegations against absconding suspects were diluted.
Critics further allege that Friday’s decision effectively legitimizes over Rs 5 billion allegedly siphoned from cooperatives and transferred abroad through shell companies, land transactions, and cryptocurrency. “This move has made it easier for those involved to sanitize illicit funds,” one former secretary said.
“Dropping serious charges against a politically exposed person under FATF’s highest-risk category is an act that places both citizens and the state itself in danger."
FATF classifies Politically Exposed Persons (PEPs), along with their family members and close associates, as high-risk under global Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) standards. Under FATF Recommendations 12 and 22, financial and designated non-financial institutions are required to apply enhanced due diligence and continuous monitoring to such individuals.
FATF also follows the principle of ‘once a PEP, always a PEP,’ meaning that heightened scrutiny does not automatically end when a person leaves office. “Given this framework, it is hard to believe that such a decision was taken without the knowledge or consent of the Prime Minister,” he noted.
Under Nepal’s own laws, organised crime and money laundering cases are not meant to be withdrawn in this manner. Beyond domestic legality, observers warn that the decision has put Nepal’s international financial credibility at stake.
After the controversial decision by AG Bhandari, victims of cooperative fraud have already taken to the streets, accusing the state of failing to recover their savings and protect their rights.
Nepal was previously placed on the FATF grey list due to weak enforcement, delayed investigations, and political interference. Analysts say leniency shown by past governments toward illicit financial networks worsened the situation and that the current administration’s actions have only amplified the risk.
Nepal is under pressure to fully implement its FATF action plan by January 2027. However, delays in completing a national risk assessment, poor coordination among investigative bodies, and a soft approach toward high-profile cases suggest the country may struggle to meet its commitments.
FATF has repeatedly urged Nepal to strengthen oversight of banks, cooperatives, casinos, precious metal and real-estate transactions, curb informal money transfer systems such as hundi – illegal transfer of money – enhance investigative and prosecutorial capacity, and ensure effective confiscation of illicit assets. Full compliance with targeted financial sanctions related to terrorism and weapons of mass destruction has also been emphasised.
Although the government claims to be working closely with FATF and the Asia-Pacific Group (APG) to address these weaknesses, analysts say recent decisions have made Nepal appear increasingly vulnerable in the global fight against money laundering.
As cooperative fraud and money laundering now directly affect Nepal’s international credibility, economic and foreign investment climate, experts warn that continued inaction – and politically motivated decisions – could push the country onto the FATF blacklist.
Observers also question the silence of political parties and civil society as the government appears to undermine the very ideals born out of the Gen-Z movement and the sacrifice of 76 young lives.
Despite having laws and institutions in place to combat illicit finance and terrorist funding, Nepal has produced limited tangible results in investigations, prosecutions, and asset seizures. Critics attribute this not only to institutional weakness but also to long-standing collusion between political leadership and notorious financial middlemen under previous administrations.
Analysts warn that Nepal’s situation deteriorated sharply in the immediate past after the then Prime Minister KP Sharma Oli government withdrew cases against members of the controversial ‘Thurman Gun gang’ and individuals including Deepak Bhatt from the Department of Money Laundering Investigation (DMLI) and Nepal Rastra Bank (NRB). They claim the risk has increased even further under the current government due to its controversial decisions, raising fears that Nepal could slide into the FATF ‘dark grey list’ or even the ‘black list.'
Although Nepal has established rules, laws, and institutional mechanisms to combat money laundering and terrorist financing, it has failed to produce tangible results in practice. As a result, progress in investigations, prosecutions, and asset seizures remains limited. Critics argue that this is not due to government inefficiency alone, but also because of alleged collusion between past governments and notorious networks and intermediaries like the so-called Thurmal Gun gang, during the tenure of former Prime Minister KP Sharma Oli and his Finance Minister Bishnu Paudel.
At present, however, analysts say Nepal has been pushed into even greater risk due to what they describe as the Karki government’s inexplicable leniency toward Rabi Lamichhane, a politically influential figure (PEPs) listed under FATF’s high-risk category.
Similar flawed decisions and delays in enforcing the law under previous governments led to Nepal being placed back on the FATF ‘grey list.'
Observers now find it troubling that a country already weakened by alleged close ties between political leaders and intermediaries accused of laundering illicit money may be moving toward the FATF ‘black list’ under Prime Minister Karki and her controversial Attorney General Bhandari.
This is because money laundering in Nepal is not limited to brokers and intermediaries alone; it is also widespread among politically connected figures like Rabi Lamichhane involved in the cooperative sector. Many cooperatives are allegedly operated by politicians and their family members, where public funds are misappropriated while enjoying protection from political parties and law-enforcement agencies. Rabi Lamichhane, critics argue, is only an example of a much broader problem.
For these reasons, the Lamichhane case is no longer just a domestic legal matter, it has become a test of Nepal’s commitment to global financial integrity. Failure to correct course, experts warn, could see Nepal slide from the grey list into the far more damaging FATF blacklist.

(Originally published at Nepalkhabar: https://en.nepalkhabar.com/news/detail/16925/)

कालो धन कारोबारलाई प्रधानमन्त्री कार्कीको स्वीकृति ? नेपाल कालोसूचीमा पर्ने जोखिम

सहकारी ठगी र सम्पत्ति शुद्धीकरणका मुद्दा अझै अदालत र अनुसन्धान प्रक्रियामै रहेका बेला सरकारको हालैको एक विवादास्पद निर्णयले कालोधन ओसारपसारसम्बन्धी अन्तर्राष्ट्रिय निगरानी सूचीमा रहेको नेपालका लागि झन् गम्भीर जोखिम उत्पन्न गरेको छ। विशेषगरी फाइनान्सियल एक्सन टास्क फोर्स (एफएटीएफ) को ‘ग्रे लिस्ट’ (खैरो सूची)मा रहेको नेपाल अब ‘ब्ल्याक लिस्ट’ (कालोसूची)तर्फ उन्मुख हुन सक्ने आशंका बढेको छ।
नेपाल हाल एफएटीएफको ‘खैरो सूची’ अर्थात् औपचारिक रूपमा बढी निगरानीमा रहेका क्षेत्राधिकारको सूचीमा छ।
तर महान्यायाधिवक्ता कार्यालयले राष्ट्रिय स्वतन्त्र पार्टीका सभापति रवि लामिछाने, उनका साझेदार तथा हाल फरार जीबी राईसहित १५३ जनाविरुद्ध दायर सहकारी ठगी तथा सम्पत्ति शुद्धीकरणसम्बन्धी मुद्दामा अभियोगपत्र परिमार्जन गर्ने निर्णय गरेपछि अन्तर्राष्ट्रिय तहमा नेपालप्रतिको विश्वास कमजोर हुन सक्ने चिन्ता व्यक्त गरिएको हो।
सुशासनका लागि गत भदौ २३ र २४ गते जेनजीले गरेको प्रदर्शनका क्रममा मारिएका युवाहरूको रगतको जगमा बनेको पूर्वप्रधानन्यायाधीश सुशीला कार्की नेतृत्वको सरकार यतिबेला आफ्नै कानुनी सल्लाहकारका कारण गम्भीर नैतिक र कानुनी संकटमा फसेको हो। सुशासन, पारदर्शिता र कानुनी राज्यको माग गर्दै जेनजी विद्रोह भएको थियो। तर, त्यसैको जगमा सत्तामा पुगेकी कार्कीले नियुक्त गरेकी कानुनी सल्लाहकार अर्थात् महान्यायाधिवक्ता सविता भण्डारीले एकपछि अर्को विवादास्पद निर्णय गर्दै जाँदा न्यायको मर्ममाथि नै प्रहार भएको छ। 
पछिल्लो समय महान्यायाधिवक्ता भण्डारीले तीनवटा ठूला र संवेदनशील प्रकरणमा लिएका विवादास्पद निर्णयले प्रधानमन्त्री कार्कीप्रति मात्र नभएर नेपालकै न्याय प्रणालीमा शंका उत्पन्न भएको छ।
भण्डारीले बिहीबार र शुक्रबार सहकारी ठगी प्रकरणका आरोपित राष्ट्रिय स्वतन्त्र पार्टी (रास्वपा)का सभापति रवि लामिछाने र गोरखा मिडिया प्रालिका अध्यक्ष जीबी राईसहित १५३ जनाविरुद्धको सम्पत्ति शुद्धीकरण र संगठित अपराधको मुद्दाको अभियोगपत्र संशोधन गर्ने निर्णय गरिन्। मुलुकी फौजदारी कार्यविधि संहिताको दफा ३६ को ‘गलत प्रयोग’ गर्दै भण्डारीले विचाराधीन मुद्दाको अभियोगपत्र संशोधन गर्न निर्देशन दिएकी हुन्।
महान्यायाधिवक्ता भण्डारीले सुरुमा रवि लामिछानेको अभियोगपत्र सच्याउने निर्णय गरेकी थिइन्। तर एउटै अभियोगपत्रमा रहेका अन्य अभियुक्तहरूका हकमा फरक व्यवहार गर्दा कानुनी जटिलता देखिने भएपछि रविसँग जोडिएका पाँच सहकारीका सबै १५३ प्रतिवादीलाई ‘संगठित अपराध’ र ‘सम्पत्ति शुद्धीकरण’ अभियोगबाट मुक्त गर्ने विवादास्पद निर्णय गरिन्।
एउटै प्रकृतिको अपराधमा संलग्नमध्ये एक जनाको मात्रै अभियोग परिमार्जन गर्दा अदालतबाट अस्वीकार हुन सक्ने अवस्था भएकाले फरार अभियुक्त जीबी राईजस्ता व्यक्तिको हकमा समेत गम्भीर अभियोग हटाइएको हो।
यो विवादास्पद निर्णयसँगै सहकारी ठगीबाट आर्जित तथा विभिन्न कम्पनी, जग्गा कारोबार र क्रिप्टो करेन्सीमार्फत नेपालबाहिर लगिएको ५ अर्ब बढी रकम वैध बनाउने रवि लामिछाने र जीबी राईको प्रयासलाई महान्यायाधिवक्ता भण्डारीले सहज बनाइदिएकी छिन्।
'एफएटीएफले उच्च निगरानीमा राखेको राजनीतिक रूपमा प्रभावशाली व्यक्तिसँग जोडिएको मुद्दा फिर्ता गर्नु राज्यले आफ्नै नागरिक र अन्तर्राष्ट्रिय प्रतिबद्धतामाथि जोखिम निम्त्याउनु हो,' एक पूर्वसचिव भन्छन्।
एफएटीएफले सबैभन्दा बढी निगरानी गर्नुपर्ने सूचीमा पहिलो नम्बरमा राखेको राजनीतिज्ञको गम्भीर प्रकृतिको मुद्दाफिर्ताको आफैँमा नेपाल देश र नेपाली नागरिकप्रति सरकारले गरेको ठूलो अपराध भएको उनको भनाइ छ।
स्मरण रहोस्, एफएटीएफले कालोधनको ओसारपसारको जोखिमअन्तर्गत सम्पत्ति शुद्धीकरण निवारण/आतंकवादी गतिविधिमा वित्तीय सहयोग निवारण (एएमएल/सीएफटी) वर्गीकरण गर्दा राजनीतिकरूपमा प्रभावशाली व्यक्ति (पेप्स), तिनका परिवारका सदस्य तथा नजिकका सहयोगीहरूलाई घुसखोरी, भ्रष्टाचार र सम्पत्ति शुद्धीकरणमा संलग्न हुने सम्भावनाका कारण उच्च जोखिम समूहका रूपमा पहिचान गरेको छ।
एफएटीएफको सिफारिस नम्बर १२ र २२ अनुसार यस्ता व्यक्तिहरूको कारोबारमा वित्तीय तथा गैर–वित्तीय संस्थाले कडा निगरानी र जोखिम व्यवस्थापन प्रणाली लागू गर्नुपर्ने स्पष्ट व्यवस्था छ।
एफएटीएफले अपनाएको ‘एक पटक पेप्स, सधैं पेप्स’ सिद्धान्तअनुसार पदबाट बाहिरिएपछि पनि जोखिम मूल्याङ्कनका आधारमा राजनीतिक रूपमा प्रभावशाली व्यक्तिमाथि निरन्तर निगरानी आवश्यक मानिन्छ। यही सन्दर्भमा ती पूर्वसचिव भन्छन्, 'यस्ता गम्भीर अभियोग हटाउने निर्णय प्रधानमन्त्रीको जानकारी वा सहमतिबिना भएको हो भन्न गाह्रो छ।'
एफएटीएफको मार्गदर्शनअनुसार राजनीतिकरूपमा प्रभावशाली व्यक्तिको हैसियतको समय सीमित हुँदैन भन्दै उनी भन्छन्, 'जोखिम मूल्याङ्कनको आधारमा कुनै व्यक्ति पदबाट बाहिरिएपछि पनि सधैं राजनीतिकरूपमा प्रभावशाली व्यक्तिकै रूपमा व्यवहार गर्न सकिने खुला दृष्टिकोण अपनाउन एफएटीएफले सुझाव दिएको छ।'
एकातिर नेपाली कानुनअनुसार पनि संगठित अपराध र सम्पत्ति शुद्धीकरणजस्ता गम्भीर मुद्दा फिर्ता गर्न नमिल्ने अवस्था छ भने अर्कोतिर यस्तो निर्णयले नेपालको अन्तर्राष्ट्रिय आर्थिक प्रतिष्ठामै प्रश्न उठाएको छ। सहकारी ठगीका पीडितहरू राज्यले बचत फिर्ता गराउन प्रभावकारी भूमिका नखेलेको भन्दै सडक आन्दोलन र न्यायिक पहलमा उत्रिएका छन्।
यसअघि पनि कानुन कार्यान्वयनमा कमजोरी, अनुसन्धानमा ढिलाइ र राजनीतिक हस्तक्षेपका कारण नेपाल एफएटीएफको ‘खैरो सूची’मा परेको थियो। विश्लेषकहरूका अनुसार अघिल्ला सरकारका विवादास्पद निर्णय र कालोधनसँग जोडिएका गिरोहप्रति देखिएको उदारताले स्थिति बिग्रिएको थियो। र, वर्तमान सरकारको विवादास्पद निर्णयले जोखिम झन् बढाएको छ।
नेपाल ‘खैरो सूची’बाट बाहिर निस्कन सन् २०२७ जनवरीसम्म कार्ययोजना कार्यान्वयन गर्नुपर्ने दबाबमा छ। तर एकीकृत राष्ट्रिय जोखिम मूल्याङ्कन प्रतिवेदन समयमै तयार नहुनु, अनुसन्धान निकायबीच समन्वयको कमी र ठूला मुद्दामा देखिएको नरम व्यवहारले लक्ष्य हासिल गर्न कठिन हुने संकेत देखिएको छ।
एफएटीएफले बैंक, सहकारी, क्यासिनो, बहुमूल्य धातु तथा घरजग्गा कारोबारजस्ता जोखिम पहिचान, उच्च जोखिम क्षेत्रमा कडा निगरानी, हुण्डी नियन्त्रण, अनुसन्धान र अभियोजन क्षमता सुदृढीकरण तथा अवैध सम्पत्ति जफत प्रक्रिया प्रभावकारी बनाउन स्पष्ट सुझाव दिएको छ। साथै आतंकवाद र आम विनाशकारी अस्त्रमा हुने वित्तीय लगानी रोक्न लक्षित प्रतिबन्धको पूर्ण पालना गर्न आग्रह गरेको छ।
नेपाल सरकारले एफएटीएफ र एसिया–प्यासिफिक ग्रुप (एपीजी)सँग मिलेर कमजोरी सुधार्ने प्रतिबद्धता जनाउँदै आए पनि पछिल्ला विवादास्पद निर्णयले नेपाललाई कालोधन ओसारपसारविरुद्धको अन्तर्राष्ट्रिय लडाइँमा अझै कमजोर देखाएको विश्लेषकहरूको ठम्याइ छ।
सहकारी ठगी र सम्पत्ति शुद्धीकरण अब केवल आन्तरिक कानुनी विषय मात्र नभई नेपालको अन्तर्राष्ट्रिय विश्वसनीयता, आर्थिक प्रतिष्ठा र वैदेशिक लगानीसँग प्रत्यक्ष जोडिएको मुद्दा पनि भएका कारण यस्ता निर्णयमा सुधार नआए, नेपाल कालोसूचीमा धकेलिन सक्ने चेतावनी पनि विज्ञहरूले दिएका छन्।
यसरी भदौ २३ र २४ को जेन जी आन्दोलको मर्म, कलिला शहिदको सपना तथा कानुनी राज्यको धज्जी उडाउँदै प्रधानमन्त्री कार्की सरकारले नेपाललाई अन्तर्राष्ट्रियस्तरमा कालोसूचीमा धकेल्ने विवादास्पद निर्णय गर्दा राजनीतिक दलहरू तथा नागरिक समाजको मौनता रहस्यमय छ।
नेपालले कालो धनको ओसार पसार र आतंकवादी लगानीविरुद्ध नियम, कानुन र संयन्त्र बनाए पनि व्यवहारमा ठोस परिणाम देखाउन नसकेका कारण अनुसन्धान, अभियोजन र सम्पत्ति जफतजस्ता उपलब्धि न्यून छन्। यसको कारण सरकारको असक्षमता मात्र नभई अघिल्ला सरकारका प्रधानमन्त्री केपी शर्मा ओली तथा उनका अर्थमन्त्री विष्णु पौडेलको थर्मन गन ग्याङजस्ता बदनाम गिरोह र ‘बिचौलिया’हरूसँग विगतका सरकारहरूको साँठगाँठ रहेको आरोप छ। तर, एफएटीएफको उच्च जोखिम सुचीमा रहेको प्रभावशाली राजनीतिक ब्यक्ति रवि लामिछानेप्रति कार्की सरकारको रहस्यमय प्रेमका कारण नेपाल थप जोखिममा परेको छ।
अघिल्लो सरकारका यस्तै गलत निर्णय तथा कानुन कार्यान्वयनमा ढिलाइका कारण नेपाललाई एफएटीएफले ‘ग्रे लिस्ट’मा पुनः राखेको थियो। ओली तथा पौडेलको बेडरुमसम्म कालोधनका ओसारपसारका आरोपित थर्मन गन ग्याङजस्ता विचौलिया तथा आरोपीसँग सम्बन्ध भएका कारण खैरो सूचीमा परेको नेपाल वर्तमान प्रधानमन्त्री कार्की तथा उनका विवादित महान्यायाधिवक्ता भण्डारीका कारण कालोसूची उन्मुख हुनु दुखद छ।
ओली सरकारले सम्पत्ति शुद्धीकरण अनुसन्धान विभाग तथा नेपाल राष्ट्र बैंकमा रहेका थर्मन गन ग्याङ र दीपक भट्टसहितका व्यक्तिविरुद्ध ती गिरोहका मुद्दा फिर्ता लिँएका कारण तत्कालनि अवस्थामा नेपालको अवस्था झन् बिग्रिएको थियो भने वर्तमान सरकारको विवादास्पद निर्णयले झन् जोखिम बढेर नेपाल ‘डार्क–ग्रे लिस्ट’ वा ‘ब्ल्याक लिस्ट’मा पर्ने जोखिम बढेको चेतावनी विश्लेषकहरूले दिएका छन्।
किनकि नेपालमा कालो धन ओसार पसार केवल बिचौलियामाझ मात्र नभई सहकारी क्षेत्रमा संलग्न राजनीतिक नेताहरूमाझ पनि व्यापक रहेको छ। धेरै सहकारी राजनीतिक नेता र उनीहरूको परिवारले चलाइरहेका छन्, जहाँ जनताको पैसा ठगी हुँदासमेत दल र कानुन कार्यान्वयन निकायको संरक्षण पाइरहेको आरोप छ। रवि लामिछाने त एउटा उदाहरण मात्र हुन्।
त्यसैले रवि लामिछानेको सहकारी ठगी र सम्पत्ति शुद्धीकरण मुद्दा केवल नेपालको घरेलु कानुनी मामला मात्र होइन अन्तर्राष्ट्रिय मान्यता, आर्थिक प्रतिष्ठा र विदेशी लगानीका लागि चुनौतीको विषय पनि हो।

(Originally published at NepalKhabar: https://nepalkhabar.com/opinion/263026-2026-1-18-22-23-52)

Nepal races against time to fix money laundering deficiencies ahead of FATF review

Nepal is currently on the Financial Action Task Force (FATF) ‘grey list’ – officially, the ‘jurisdictions under increased monitoring’ – and has a deadline to implement its action plan by January 2027.
As Nepal is under continuous observation of the international evaluators, officials are scrambling to demonstrate that the country has made real progress in its fight against flow of dirty money.
Financial Action Task Force (FATF), the global watchdog that monitors illicit financial flows, has kept Nepal under ‘increased monitoring’ – a status popularly known as the grey list – after identifying serious gaps in the country’s enforcement and supervision systems.
However, authorities claim that Nepal is actively working with the FATF and the Asia Pacific Group (APG) to address its Anti-Money Laundering / Combating the Financing of Terrorism (AML/CFT) shortcomings. Prime Minister Sushila Karki, on Sunday, took stock of the situation with Finance Minister Rameshore Prasad Khanal, Nepal Rastra Bank Governor Bishwonath Poudel, and Department of Money-Laundering Investigation (DMLI).
Nepal is trying to address the issues raised by FATF and potentially exit the grey list is January 2027, albeit in a lousy pace because the global body to watch flow of dirty money’s decision this year, came with a clear message: Nepal’s laws look better on paper than they work in practice.
The message was: Nepal government does not walk the talk despite passing several regulations and setting up mechanisms to counter money laundering and the financing of terrorism but tangible results – like investigations, prosecutions, and confiscations – remain scarce, not due to successive governments’ inability but due to affiliation of governments with the infamous gangs and ‘middlemen’ like Therman Gun Gang.
The DMLI on Sunday reported the Prime Minister Karki that the department has frozen 1,600 ropanis of land within the Kathmandu Valley alone, in suspicious of Money Laundering.
However, the successive government’s lack of urgency in coming out of the grey list and its failure to meet the requirements by the deadline may result in Nepal being moved to the ‘black list’ – High-Risk Jurisdictions subject to a Call for Action – that will lead to severe economic sanctions and international financial isolation.
Though the erstwhile government led by Prime Minister KP Sharma Oli and his finance minister Bishnu Poudel, both, have claimed to bring Nepal out of the grey list, they have – in reality – been protecting the infamous Therman Gun Gang, which is allegedly involved in most of the money-laundering cases like illegal and suspicious transactions, by stationing their henchmen in the regulators.
The then KP Sharma Oli government has even withdrawn their cases from the Department of Money-Laundering Investigation (DMLI) and even Central Bank due to their affiliation with infamous gangs has also worsened the situation.
“We are responsible for investigation only,” said Director General of the DMLI Gajendra Thakur. But the department has always been under pressure not to investigate on suspicious transactions and therefore the department saw new head almost frequently.
Similarly, the investigation that the then Oli government withdrew against the infamous Thermal Gun Gang including Deepak Bhatta, the department seems at loss, whom to investigate and whom not. “The situation will put Nepal further in red-zone, as the FATF is closely monitoring the country,” according to those, who are privy to the investigation.
However, NRB and Finance Ministry are preparing the agendas to put forward the FATF during the review. Finance Minister Khanal and NRB Governor Poudel, on Sundy, appraised the Prime Minister.
The illicit flow of money is not only rampant among the ‘middlemen’ but also among the political leaders affiliated to the cooperatives sector.
Most of the cooperatives are run by the political leaders and their families, who are, despite cheating people’s money, getting protection from their respective parties, and law enforcement bodies are mere spectators.
FATF, on the contrary, has more focus on politically exposed persons (PEPs) because they are much powerful to cover the illicit money, earned with the help of their political clout.
According to officials familiar with Nepal’s preparation to face the FATF, the FATF wants proof that Nepal’s Financial Information Unit (FIU), law enforcement agencies, and regulators are not only coordinating among themselves but also not producing any measurable outcomes meaning taking action against the flow of dirty money. And it’s not a surprise as the regulatory capture by the infamous gang has made these law enforcement agencies and regulators impotent. “However, this time, FATF is neither interested in new laws or plans nor in paper works, it wants the tangible result,” according to the official, who is involved in the national response team. “FATF wants to see cases, numbers, and results."
In its last assessment, FATF pointed to persistent weaknesses: limited understanding of the country’s biggest money-laundering and terrorist-financing threats; weak supervision of high-risk sectors like cooperatives, casinos, and real-estate businesses; and a lack of visible action against illegal money transfer networks, popularly known as hundi.
The global watchdog also noted a shortage of prosecutions and asset recovery cases, raising concerns about Nepal’s ability to enforce its own laws.
Thus, Nepal will have to convince FATF and its regional counterpart, the Asia-Pacific Group on Money Laundering (APG), of which Nepal is a member, that Nepal has turned its commitment into action.
The face-to-face review will decide whether Nepal’s recent reforms and actions are credible enough to move it closer to removal from the grey list or continued deficiencies will prolong its stay.
Analysts warn that remaining on the list could damage Nepal’s reputation, discourage foreign investment, and make cross-border transactions more difficult. “Grey listing doesn’t shut Nepal out of the global system, but it raises the cost of doing business,” said a senior banker. “Every transaction gets extra scrutiny,” he said, adding that it affects business confidence.
Nepal is trying to get out of the grey list. Officials say the government has already begun working on a short-term action plan. It has prepared key priorities including publishing an updated National Risk Assessment (NRA) that identifies major threats, conducting risk-based inspections of banks and non-bank sectors, and launching visible enforcement against illegal hundi operations, and middlemen like Thermal Gun Gang.
The FIU under NRB is also expected to present detailed records of suspicious transaction reports (STR) enforcement actions, and ongoing investigations. In recent years, the STR has also been increasing, also due to regular and mandatory reporting system of the financial sector.
“But we need to prove effectiveness, not just intent,” according to a source, who is following the FATF process. “If we can show credible numbers, we have a good chance to convince FATF."
Experts also recommend that Nepal demonstrate at least one significant asset seizure or confiscation case before the review. “A clear example of money-laundering proceeds being traced and frozen”, they say, “would help signal that enforcement is moving from policy to practice."
They have also called for a high-level political statement reaffirming Nepal’s commitment to anti-money-laundering reforms before the FATF meeting. Coordination among the FIU, central bank, police, and prosecutors has been described as ‘critical,’ with several agencies already instructed to document all enforcement actions taken since the last evaluation.
However, insiders admit that bureaucratic inertia and overlapping mandates remain challenges. “Different agencies have done different works though in isolation, but what FATF wants is a coherent picture, a single narrative showing how Nepal’s system functions together."
Nepal’s response team has reportedly prepared a concise evidence dossier summarizing actions taken since the last review. If Nepal can demonstrate real progress – more inspections, visible enforcement, and actual asset recoveries – it could begin the process of exiting the grey list starting the next year.
But if Nepal fails to convince the evaluators, Nepal risks a prolonged stay under global watch list. For a country struggling to attract investment and rebuild economic confidence – also after the Gen Z movement on September 8 and 9 – that would be a setback it can hardly afford. After all the Gen Z movement had also called on ‘Corruption free Nepal’, transparency and accountability.

(Originally published at NepalKhabar: https://en.nepalkhabar.com/news/detail/16621/)

MCA-Nepal signs two contracts for road maintenance project

MCA-Nepal is pleased to announce the recent signing of two essential contracts totaling $23.66 million for road maintenance under the Millennium Challenge Corporation (MCC) Nepal Compact. These contracts jointly represent a major step forward for the Compact’s goal to advance Nepal’s long-term economic growth and development, according to a press note issued by the MCA-Nepal.
MCA-Nepal signed today a $20 million contract with Sharma-Kumar Joint Venture for the Road Upgrading Works using Full-Depth Reclamation and Superpave Technology on the Dhankhola to Lamahi section of the East-West Highway, as part of implementing the Road Maintenance Project under the MCC Nepal Compact. Additionally, MCA-Nepal recently signed a supporting $3.66 million contract with Intercontinental Consultants and Technocrats Pvt Ltd (ICT) for Consulting Services for Supervision of upgrading works of this road section and Design and Construction Supervision for Periodic Maintenance of the Narayanghat to Mugling Road Section.
Executive Director at MCA-Nepal Khadga Bahadur Bisht signed and exchanged the contract for the Dhan Khola-Lamahi Road works with the authorised representative of Sharma-Kumar Joint Venture Saurav Sharma, in the presence of the US Ambassador to Nepal Dean Thompson, Joint Secretary at the Ministry of Finance Dr Dhani Ram Sharma, Joint Secretary at the Ministry of Physical Infrastructure and Transport Sushil Babu Dhakal, the Director General at the Department of Roads Dr Bijaya Jaishi, MCA-Nepal Board Members, MCC Nepal Acting Country Director Sanjay Poudyal and MCC and MCA-Nepal officials.
The project includes the construction of a 7-meter carriage way and 2.5-meter shoulder on both sides of the road, making it 12 meter wide using Full-Depth Reclamation and Superpave technology for the upgradation of the 40km Dhan Khola to Lamahi section of the East-West Highway and periodic maintenance of the Narayanghat to Mugling Road Section. The upgrading and maintenance works will be conducted with new technologies, ie., Full Depth Reclamation and Superior Performing Asphalt Pavement (Superpave), for the first time in Nepal.
Addressing the event, the US Ambassador to Nepal Dean Thompson said, “The upgrading of the Dhan Khola-Lamahi Road project and the Narayanghat-Mugling Road Maintenance project represent much more than individual contracts."
"Together, they are another milestone reflecting the strength of the US-Nepal partnership, the momentum of the Millennium Challenge Compact, and a shared commitment at all levels of government to delivering tangible results for the people of Nepal and American businesses working in Nepal," he said, “As the Compact delivers essential road infrastructure across Nepal, these two contracts will introduce American excellence in road maintenance technology by using Full Depth Reclamation and Superpave."
Likewise, Joint Secretary at the Ministry of Finance Dr. Dhani Ram Sharma, on the occasion, expressed his confidence that the latest technologies going to be used in Nepal for the first time will open the road to sustainable, effective and cost-effective road maintenance, and MCA-Nepal would complete the project within the timeline.
Joint-Secretary at the Ministry of Physical Infrastructure and Transport, Sushil Babu Dhakal, said, “The progress reflects MCA-Nepal’s continued efforts to implement the MCC Nepal Compact by introducing new technologies that improve the quality of Nepal’s road system."
MCC Nepal Acting Country Director Sanjay Poudyal said that this project will contribute meaningfully to improving Nepal's road reliability and serve as a practical model that Nepal can replicate more broadly across its road network. He said well-built and well-maintained roads are not merely a consequence of economic growth; they are one of its essential drivers.
MCA-Nepal Executive Director Khadga Bahadur Bisht, on the occasion, said, “It is indeed a remarkable milestone to sign two contracts to move ahead with the Road Maintenance Project. The activities under the contracts will help in lowering trade and vehicle operation costs, increase road safety, decrease travel time, and improve travel quality. I would like to acknowledge the support of the Government of Nepal and our key stakeholders – the Ministry of Physical Infrastructure and Transport, Department of Roads, the MCA-Nepal Board and MCC for their continued support."
The Road Maintenance Project is a component of the MCC Nepal Compact, aimed at reducing transportation costs and improving road conditions in Nepal.

UN expert says minorities and Dalits must be empowered to fulfill their rights

Nepal must close the gap between clear constitutional and legislative provisions and their meaningful implementation to effectively prohibit discrimination against persons belonging to minorities, including Dalits, a UN expert said today.
“Minorities’ and Dalits’ unhindered access to education is the gateway to building skills and confidence, and breaking through cycles of poverty that have prevented them from realising the full enjoyment of their rights and their meaningful contribution to society as a whole,” said the UN Special Rapporteur on minority issues Nicolas Levrat, in a statement at the end of his visit to the country.
Levrat urged the donor community to efficiently support Nepal in designing and implementing empowering programmes conceived with and for the benefit of persons belonging to minorities. He called for a partnership with local authorities who have the means to deliver effective support to minorities and Dalits in the communities where they reside.
“In this period of political transition, it is time to rebuild trust in the Nepali social contract. Minorities and Dalits must feel that they can trust State institutions to protect them, and Nepali society as a whole must trust that their contributions enrich and uplift society,” the Special Rapporteur said, adding that minorities and Dalits must have trust in themselves to advocate for and realise their civil, political, economic, social and cultural rights.
“State institutions must better reflect the diversity of Nepali society in their composition and leadership,” he said, “Minorities must be able to recognise themselves in those exercising power. They must feel heard and understood by public servants - including teachers, judges, and the police - in their mother tongue language."
The expert expressed profound concern about the high rate of impunity for crimes against Dalits, such as violence linked to inter-caste marriages.
“Access to justice must include well-functioning enforcement mechanisms and sanctions of perpetrators,” he said. “It will lead to the dismantlement of a system and mindsets that have enabled caste-based violence and discrimination as well as a culture of impunity.”
Levrat warned about the curtailment of religious freedom, through selective use of the anti-conversion provision, leading to discrimination against religious minorities, including Muslims and Christians.
He welcomed the draft of a comprehensive anti-discrimination legislation protecting ethnic, religious and linguistic minorities, including those affected by forms of intersectional discrimination such as Dalit women, the Badi community, the Tharu community, minorities belonging to the LGBTQIA+ community, minorities with disabilities, Madhesis, Muslims and Christians.
The Special Rapporteur will present a full report to the UN Human Rights Council in March 2026.

MCA-Nepal starts construction of New Butwal Substation and 18-km Transmission Line

Millennium Challenge Account Nepal (MCA-Nepal) today commemorated the initiation of construction of the 18-kilometer (km) transmission line and the New Butwal Substation in Sunawal, Nawalparasi (Bardaghat Susta West). The new infrastructure, part of the Millennium Challenge Corporation (MCC) Nepal Compact, will strengthen Nepal’s electricity grid and establish a major energy trade interconnection between Nepal and India, according to MCA-Nepal.
MCA-Nepal Executive Director Khadga Bahadur Bisht joined Finance Minister Rameshore Prasad Khanal, the US Ambassador to Nepal Dean Thompson, and MCC Resident Country Director Diane Franscisco at the Construction Initiation event.
Khanal, on the occasion, said, “This project reflects the Government of Nepal’s strong commitment to expanding clean energy access, enhancing regional power trade, and supporting our national goal of long-term economic growth. With the support of MCC and MCA-Nepal, we are turning agreements into action for the benefit of the country."
"The United States is proud to stand with Nepal as a committed partner in building a more reliable energy system,” said the US Ambassador to Nepal Dean Thompson. “Projects like this transmission line and substation will not only help keep the lights on for families and businesses, but also create opportunities for trade, growth, and prosperity across the region. Today’s event is a testament to what we can achieve together.”
“Today marks a new chapter in strengthening Nepal’s energy security,” said Executive Director Bisht, on the occasion. “The transmission line and substation will create new opportunities for power trade and bring long-term benefits to our citizens," he said, adding that MCA-Nepal was proud and committed to implementing this project in close partnership with the Government of Nepal and MCC.
The 18-km Transmission Line will connect the 400kV New Butwal Substation to the Nepal-India border. Together, these projects represent nearly $50 million in investment and will help Nepal export clean hydropower to India under the landmark 2024 power trade agreement, which envisions 10,000 megawatts (MW) of electricity exports over the next decade.
The 18-km transmission line and New Butwal Substation are vital to Nepal’s economic future because they will connect the country’s growing hydropower supply to regional markets. By strengthening the backbone of Nepal’s high voltage grid, the project will make electricity delivery more reliable for households and businesses, reduce power losses, and enable Nepal to sell power to other countries. These improvements will help lower the cost of doing business, attract new private investment, and generate revenues that can be reinvested in Nepal’s development priorities, according to MCA-Nepal.
MCA-Nepal is the government entity established to implement the MCC Nepal Compact. The MCC Nepal Compact represents a total $747 million investment - $550 million in US grant funding and $197 million from the government to expand Nepal’s electricity transmission network, reduce transport costs, and create new opportunities for private sector growth. MCA-Nepal works in close partnership with MCC, the government and Nepali communities to ensure the compact delivers lasting benefits to the people of Nepal.

एमसिए–नेपालद्वारा न्यू बुटवल सबस्टेशन र १८ किमि प्रसारण लाइन निर्माण सुरु

एमसिए–नेपालले बुधबार (आज) नवलपरासी (बर्दघाट सुस्ता पश्चिम)को सुनवलमा आयोजित एक समारोहबीच न्यू बुटवल सबस्टेशन र १८ किमि प्रसारण लाइन निर्माण कार्यको शुभारम्भ गरेको छ । एमसीसी नेपाल कम्प्याक्ट कार्यक्रम अन्तर्गत निर्माण गर्न लागिएका यी नयाँ पूर्वाधारले नेपालको विद्युतीय सञ्जाललाई सशक्तीकरण गर्नुका साथै नेपाल र भारतबीच महत्वपूर्ण ऊर्जा व्यापार अन्तरसम्बन्ध स्थापना गर्ने मिलेनियम च्यालेञ्ज एकाउण्ट नेपाल विकास समिति (एमसिए–नेपाल) जनाएको छ ।

अर्थमन्त्री रामेश्वरप्रसाद खनाल, नेपालका लागि संयुक्त राज्य अमेरिकाका राजदूत डिन आर थम्प्सन, एमसीसीका आवासीय राष्ट्र निर्देशक डायन फ्रान्सिस्को, एमसिए–नेपालका कार्यकारी निर्देशक खड्ग बहादुर विष्ट तथा स्थानीय जनप्रतिनिधिको समुपस्थितिमा उक्त निर्माण शुभारम्भ कार्यक्रम आयोजना भएको थियो । 

“स्वच्छ ऊर्जामा पहुँचको विस्तार, क्षेत्रीय ऊर्जा व्यापारमा अभिवृद्धि तथा दीर्घकालीन आर्थिक वृद्धि हासिल गर्ने राष्ट्रिय लक्ष्यमा सहयोग पु¥याउने नेपाल सरकारको सशक्त प्रतिबद्धता यस आयोजनामा प्रतिविम्बित भएको छ । एमसीसी र एमसिए–नेपालको सहयोगबाट हामी राष्ट्रको हितका लागि सम्झौतालाई कार्यरूपमा रूपान्तरण गर्दैछौँ,” कार्यक्रममा अर्थमन्त्री खनालले भने ।

“थप भरपर्दाे ऊर्जा प्रणाली निर्माण गर्ने कार्यमा एक प्रतिबद्ध साझेदारका रूपमा नेपालसँग उभिन पाउँदा संयुक्त राज्य अमेरिकालाई गर्व लागेको छ”, नेपालका लागि संयुक्त राज्य अमेरिकाका राजदूत थम्प्सनले भने, “प्रसारण लाइन तथा सबस्टेशन जस्ता आयोजनाहरूले घरपरिवार तथा व्यवसायहरूका बत्ती बाल्नमा मात्र सघाउने नभई यस क्षेत्रभरि नै व्यापार, वृद्धि तथा प्रगतिका लागि अवसरहरू पनि सिर्जना गर्छ । आजको यो कार्यक्रम हामी सहकार्यबाट के कति हासिल गर्न सक्छौँ भन्ने कुराको प्रमाण हो ।”

“नेपालको ऊर्जा सुरक्षा सशक्त बनाउने सन्दर्भमा आज एउटा नयाँ अध्याय थपिएको छ”, एमसिए–नेपालका कार्यकारी निर्देशक विष्टले कार्यक्रममा भने, “यस प्रसारण लाइन तथा सबस्टेशनले ऊर्जा व्यापार विस्तार गर्न तथा नेपालीका लागि दीर्घकालीन लाभ दिलाउनमा नयाँ अवसरहरू सिर्जना गर्नेछन् । नेपाल सरकार तथा अमेरिकी सरकारको एमसीसीसँगको निकटतम साझेदारीमा यस आयोजनाको कार्यान्वयन गर्न पाएकोमा एमसिए–नेपाल गौरवान्वित छ र यसलाई सफल बनाउनमा प्रतिबद्ध छ ।”

यस १८ किमि प्रसारण लाइनले ४०० केभी न्यू बुटवल सबस्टेशनलाई नेपाल–भारत सीमासँग जोड्नेछ । करिब पाँच करोड अमेरिकी डलरको लगानीमा निर्माण गरिने यी ऊर्जा पूर्वाधारले आगामी दशकभित्रमा १० हजार मेगावाट बिजुली निर्यात गर्ने लक्ष्य लिएको ऐतिहासिक ऊर्जा व्यापार सम्झौता, सन् २०२४ अन्तर्गत स्वच्छ जलविद्युत् भारत निर्यात गर्नमा नेपाललाई सघाउ पु¥याउनेछ ।

यस १८ किमि प्रसारण लाइन र न्यू बुटवल सबस्टेशनले नेपालमा बढ्दो रूपमा उत्पादन हुन थालेको जलविद्युत्लाई क्षेत्रीय बजारसँग जोड्ने हुनाले यिनीहरू नेपालको आर्थिक भविष्यका लागि महत्वपूर्ण छन् । नेपालको उच्च भोल्टेजयुक्त विद्युतीय सञ्जाललाई सशक्त बनाउँदै यस आयोजनाले घरपरिवार एवं व्यवसायहरूका लागि विद्युत् आपूर्ति थप भरपर्दाे बनाउनेछ भने विद्युत् चुहावट घटाउनुका साथै नेपाललाई ऊर्जाको वैदेशिक व्यापार गर्न सक्षम बनाउने जनाइएको छ । यी सुधारबाट व्यवसाय सञ्चालनको खर्च घट्नेछ भने नयाँ निजी लगानी आकर्षित हुने र नेपालका विकास प्राथमिकतामा पुनःलगानी गर्न सकिने थप राजस्व आर्जन गर्न सहयोग पुग्ने पनि एमसिए–नेपालले जनाएको छ ।

UN Nepal calls for action as 16-day of activism begins

Digital abuse and digital violence are among the fastest-growing threats to women’s rights worldwide. Studies show that up to half of women globally have faced some form of online harassment or abuse. For adolescent girls, it often begins as early as ages twelve to fourteen, at a time when their social and emotional development is increasingly unfolding online.

Today, the United Nations (UN) in Nepal kicked off the 16-day of 'Activism Against Gender-Based Violence' together with the Minister for Communication and Information Technology Jagdish Kharel, reaffirming Nepal’s commitment to making digital spaces safer for women and girls. This year’s global theme, 'Unite to End Digital Violence against All Women and Girls', underscores the urgency of protecting young people in rapidly expanding digital spaces.

Speaking at the event, the Kharel emphasised the need of having safe, inclusive and empowering digital ecosystem for every Nepali citizen. He noted that, “digital safety is now central to civic participation, access to information and the full exercise of rights in Nepal’s evolving digital landscape.”

The event brought together government representatives, UN agencies, development partners, youth networks, civil society, private sector, and media under one clear message: 'Digital violence is real violence'. Online abuse, sexual extortion, non-consensual sharing of images and the spread of misogynistic content inflict real harm on the lives, dignity and autonomy of women and girls, according to a press note issued by the UN in Nepal.

Speaking on behalf of the UN in Nepal, Resident Coordinator Hanaa Singer-Hamdy underscored that digital violence is not only an attack on the rights, dignity and autonomy of women and girls but a direct threat to their participation in public life.

She warned that online abuse is silencing women journalists, discouraging women leaders, and pushing girls away from digital spaces where their voices are urgently needed. "Protecting women and girls online therefore demands a whole-of-society effort to challenge harmful norms, strengthen accountability, and invest in systems that safeguard digital rights," she said, further highlighting the urgency of digital literacy and online safety education for adolescents - especially boys - to build resilience, transform attitudes, and promote respectful online behaviour.

The event featured a youth-designed mural symbolising collective commitment to reclaiming safe digital spaces, along with a fireside chat with influencers and digital rights experts on the rise of online abuse and the urgent need for stronger protections.

Young participants, on the occasion, shared their experiences of online harassment and the importance of being believed, supported and empowered to live a safe digital life. They asked better support systems for survivors, addressing impact of harmful content and building platforms that are safe for women and girls.

The UNiTE 2025 campaign runs until December 10, under the theme 'UNiTE to End Digital Violence against All Women and Girls' urging everyone to stand together against digital violence and uphold digital rights as fundamental human rights.

The campaign calls on parents, educators, policymakers and technology companies to take shared responsibility for creating online environments where all women and girls can learn, participate and thrive without fear.

KOICA grants $2.5 million as an interest subsidy for Korea Returnee

Korea International Cooperation Agency (KOICA) and Agricultural Development Bank Ltd (ADBL), entered into an arrangement to implement the component 'Increased Access to Financial Support for Korea Returnee Migrants', which is envisioned by the Memorandum of Understanding (MoU) signed between the Government of the Republic of Korea and Nepal for the project 'Strengthening Stage-Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal.'
The agreement was signed by Country Director of KOICA Mooheon Kong and CEO of the ADBL Govinda Gurung, where joint secretary of FACD, Ministry of Finance Dhani Ram Sharma and joint secretary of the Ministry of Labour Employment and Social Security MoLESS Krishna Prasad Sapkota signed the agreement as the witness.
The main objective of this programme is to create a stable environment for entrepreneurship by improving financial access for Korea returnee migrants in Nepal, according to KOICA press nopte. "For this eligible Korea Returnee will get subsidised loan from the ADBL. The loan will be subsidized for 5 years."
KOICA will provide $2.5 million (approximately Rs 320,000,000) for the Programme. KOICA’s contribution will be used solely for interest subsidies. ADBL will contribute approximately Rs 1.2 billion as loan capital for the Programme.
It is estimated that the Programme is expected to support approximately 200 to 250 Korea Returnees with an average loan size of Rs 5 million, the press note reads, adding that the Programme will run from 2026 to 2028. "The interest subsidy will be provided for the period of 5 years."
Through this programme Korea Returnees will have full opportunity to employ their skills and establish successful enterprise that supports the local economy. In addition to this, local employment will be created, it adds.
In the event KOICA Country Director said that it is a shared commitment to empowering Nepali returnee migrants who have contributed their skills, labour and aspirations while working in Korea. "As they return home, it is our collective responsibility to create an enabling environment where they can reintegrate with dignity, security and opportunities for long-term economic stability," Kong said, on the occasion.
In the event, joint secretary Sapkota stated that Nepal and the Republic of Korea share a longstanding relationship grounded in cooperation, mutual respect, and a shared vision for human-centered development. "Our collaboration in the employment and migration sector especially through the Employment Permit System (EPS) has benefitted thousands of Nepali workers," he said, adding, "As these workers return home with experience, skills, and aspirations for a better future, it becomes essential that we, as institutions, support their smooth and productive reintegration."
During the event, joint secretary Sharma said that KOICA has always been a meaningful partner. "Its cooperation has been meaningful and very much effective," he added.
ADBL CEO Gurung, on the occasion, said that the programme is new and very much useful for returnee migrants who wish to start their own venture. He further stated that the ADBL will execute this programme successfully and look forward for such innovative programmes in future.

Why is the private sector always under attack?

The private sector, which accounts for 81.55 percent of the total economy and contributes 85.6 percent to employment generation in the country, has repeatedly come under attack lately. Despite being the driving force for the economy through job creation and contribution to the national coffer as tax revenue, the private sector has been increasingly targeted – sometimes by republicans, other times by monarchists, and at times by independent groups – leaving it demoralised.
Gen Z started their protest on September 8 against corruption. The silent and disciplined march that started from Maitighar Mandala for the Parliament House at New Baneshwar turned violent – as it was hijacked by the infiltrations before they reached Baneshwar. The situation escalated – due to infiltrations – and went beyond control, forcing the police to open fire, which took the lives of 19 school children.
The grieved and angry people – after the death of school children – asked for resignation of Home Minister Ramesh Lekhak and Prime Minister KP Sharma Oli terming the death of 19 school children as a murder by the government. That evening, in the Cabinet, Home Minister Ramesh Lekhak resigned but the Prime Minister Oli took the issues very lightly and tried to put the blame on infiltrators for the death of school children.
As a result, the next day, on September 9, the protestors – where not only the Gen Z involved – not only arson and vandalized sensitive government structures like the Parliament building, Singha Durbar, the Supreme Court, the Prime Minister’s residence, and the President’s Office but also industries, businesses, and even private residences belonging to business groups.

Corporate houses targeted
The private residence of Nepal’s only Forbes listed dollar billionaire, Binod Chaudhary, in Ravi Bhawan was vandalised and put on fire. Further, properties under the Chaudhary Group, from the CG factory in Satungal to the CG Motors showroom in Thapathali, where vehicles were set on fire and vandalized. Similarly, residences and businesses belonging to his brothers Basant Chaudhary and Arun Chaudhary were also attacked, vandalized and looted. The Suzuki showroom in Thapathali was also destroyed, and looted. While exact figures are yet to come, employees suggest damages worth billions.
“Those miscreants may burn our buildings, but they cannot burn our dreams. They may loot our showrooms, but they cannot loot our values,” wrote CG’s Managing Director Nirvana Chaudhary, on his social media, expressing resilience despite the devastation.
The IME Group also faced severe damages. Its Chandragiri Cable Car base station in Kathmandu, the Maulakalika Cable Car in Nawalparasi, several Global IME Bank branches, and other business units were attacked. It not only destroyed infrastructure worth billions but also harmed investors since Global IME Bank and the cable car companies are listed on the Nepal Stock Exchange (Nepse). While these listed companies distribute dividends when they make profit, losses now mean investors will not receive returns.
Together, CG and IME Group provide at least 20,000 jobs and contribute billions annually in tax revenue to the state coffer. The attacks will inevitably reduce employment and government revenue.
Likewise, Bhat-Bhateni Supermarket, employing thousands across the country, has also been burned down to ashes. According to Chief Operating Officer (COO) Panu Paudel, September 9 alone, some 12 stores were completely burned, and nine others vandalized or looted.
Bhat-Bhateni operates 27 outlets nationwide. Initial estimates suggest damages worth about Rs 50 billion, much of which was financed by bank loans. More than 8,000 employees across branches have now lost their livelihoods.
When the Bhat-Bhateni headquarters in Naxal and 21 outlets across Nepal were damaged, the livelihoods of thousands of employees, their families, regular customers, and the lifetime investments of founder Min Bahadur Gurung have also been shattered.
It is clear these attacks were not by Gen Z protesters but by infiltrators. The Gen Z protest’s agenda was corruption control. However, other political actors, mostly opposition – including Rastriya Swatantra Party (RSP), infamous medical entrepreneur Durga Prasai, Maoist Centre and Rastriya Prajatantra Party (RPP) – hijacked the protests, as it can be seen in various photos and videos circulating on social media. Consequently, Kantipur Publications was targeted by arson and vandalism at its offices in the Thapathali Business Park, and Tinkune.
Other businesses like Captain Rameshwar Thapa’s Annapurna Tower, Simrik Air’s building, and the residence of Federation of Nepalese Chambers of Commerce and Industry’s (FNCCI) immediate past president Shekhar Golchha, were also attacked.
“We wish for positive change in the country and for the youth’s vision of a new Nepal to be realized. The attack touched our family too, but we stand firm. May democracy be strengthened. We remain committed to job creation and investment. May light bring unity after darkness,” wrote Golchha on social media.
Even the private residences of senior political leaders and the Governor of Nepal Rastra Bank, Dr Bishwo Paudel, were attacked. However, Gen Z leaders have clarified that such acts did not represent the spirit of their protest, and they are not involved in such attacks. Videos on social media also show Gen Z activists stating that the release of RSP Rabi Lamichhane was also not their agenda, accusing RSP and Lamichhane of misusing and discrediting their movement. It also validates the involvement of RSP, Durga Prasain and RPP in the name of Gen Z protest.
The FNCCI called the attacks, where a dozen individuals and business houses were selectively targeted. In its emergency online meeting on Wednesday, FNCCI raised serious concerns about the safety of entrepreneurs’ lives and properties and the means of protecting industries.

Multinational also affected
The protestors did not spear foreign investment also. The Hilton Hotel in Kathmandu was burned down, while telecommunication service provider Ncell and showrooms of Tata Motors, Hyundai, Suzuki, and Mahindra were attacked, vandalized and set on fire. Ncell alone suffered damages exceeding Rs 1 billion from arson and looting, with rebuilding of physical infrastructure expected to take six to seven months.
Industrial hubs like Biratnagar, Birgunj, Itahari, Pokhara, Dhangadhi, Dang, and Surkhet also witnessed widespread destruction.
According to initial estimates from business associations, the private sector alone has suffered losses exceeding Rs 240 billion. Considering Nepal’s economy in the fiscal year 2024-25 is valued at Rs 6.1 trillion at consumer prices, these losses amount to around 4 percent of the economy.

Financial sector hit hard
According to the Nepal Bankers’ Association, over 65 branches of banks and financial institutions were looted or burned nationwide, with numerous ATMs destroyed. This poses the risk of a liquidity crisis and shakes investor confidence, the association said.
While many businesses were insured, the volume of claims is expected to overwhelm insurers. The 2015 earthquake led to insurance claims worth Rs 17 billion, but this crisis could generate more than ten times that amount, the insurance companies estimate.

Entrepreneurs and FNCCI caution
Business leaders warn that the current situation threatens not just enterprises but overall livelihoods. Former FNCCI presidents and executives, in separate online meetings on Wednesday, stressed that such attacks not only destroy physical infrastructure but also wipe out jobs and weaken investors' confidence. The umbrella organizations like FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce (NCC), Federation of Contractors Association-Nepal (FCAN), issued statements condemning the attacks, urging the government to take immediate steps to safeguard the business environment.

Hits on morale
Repeated attacks from different groups undermine the morale and squeeze the investment capacity of the private sector. They create a perception that assets and investments are unsafe, which will discourage job creation. Continuous blame and violence widen the gap between businesses and society, feeding the misconception that entrepreneurs only chase profit, reducing social acceptance of the private sector.
Moreover, fears that ‘the next protest will burn down this structure too’ discourage new investment. Huge damages make it difficult to repay loans, complicating future access to credit. Foreign investors may also withdraw, perceiving Nepal as lacking legal protection.

Long-term risks
With continuous attacks on the private sector, foreign investments may gradually flee, and new investors will lose trust in Nepal. Experts warn that unless the government, administration, and protesters collectively cultivate a culture of protecting private property, Nepal’s economy risks becoming ‘irrecoverable.’
Still, Nepali private sector is resilient as it has survived a decade-long Maoist conflict and longer transitional periods. “Nepal’s private sector is resilient. It has the strength and willpower to rise again. However, the government must support us, and criminal-minded individuals must be punished,” said an entrepreneur, who wanted to remain anonymous.
As Nirvana Chaudhary and Shekhar Golchha said, such criminal activities can only burn infrastructure but they cannot burn the dreams, 'the dreams to rise and touch the sky.'

(Originally published at NepalKhabar: https://en.nepalkhabar.com/news/detail/15366/)