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.