AGP Executive Report

Squatter Evictions Backlash: Hundreds of Gen-Z protesters returned to Kathmandu streets, denouncing the government’s eviction drive without proper rehabilitation after floods hit a holding centre; police crackdown and arrests followed, with calls for an independent probe into the death of ride-hailing rider Ganesh Nepali. Government Response: Home Minister Sudan Gurung and other ministers visited Kharipati holding centres, promising food support and faster land ownership certificates for genuine landless families after Kirtipur’s flood forced relocations. Monsoon Weather Alerts: The Department of Hydrology and Meteorology warned of flash-flood risk in small rivers for the next three days and forecast heavy to very heavy rain in many districts, urging people in Kathmandu Valley and elsewhere to stay alert. Tragedy in Dolakha: A four-month-old girl died after a landslide buried her at Kyampol-1, Kalinchok Rural Municipality; her mother was injured and referred for treatment. Labour Survey: Nepal’s fourth Labour Force Survey is underway, with enumerators already visiting about 18,000 households; results are expected by Feb–Mar 2027. Local Economy & Prices: Gold fell by Rs 2,800 per tola to Rs 285,200; paddy plantation is running slower than last year, at 45.81% of cultivable land by Ashad 26.

Ganesh Nepali Deal: Kathmandu DAO, KMC and the family of the late Ganesh Nepali signed a nine-point agreement after his self-immolation over a traffic fine, including an independent probe led by a former judge, possible martyr status, and suspension of municipal police pending the report. Youth Protests in Kathmandu: Gen Z activists and supporters protested alleged police crackdown and detentions tied to Kirtipur Holding Center flood-displaced squatters; police detained 26 protesters in Biratnagar. Mental Health Push: Nepal’s Health Ministry plans a nationwide mental health awareness and service expansion, using existing health channels and hotlines 1166 and 1115. Monsoon Disasters: Flood risk rose in Kaski’s Kimrung Khola after an upstream landslide; in Parbat, Modikhola flooding stopped multiple hydropower plants. Hydropower Output at Risk: IPPAN warns an undeclared production holiday could waste about 900 MW due to transmission delays. Banking & Economy: Commercial banks’ net profits rose 19.62% to Rs 64.56 billion in FY 2025/26’s first 11 months; NPC entered 8,310 projects into the National Project Bank. Education Equity Tax Backlash: Private school groups urged the government to reconsider a proposed 3% equity tax. Local Governance: Nepalgunj sub-metropolis approved a Rs 1.76 billion budget for 2026/27.

World Cup Update: Defending champions Argentina booked a World Cup 2026 semifinal spot by beating Switzerland 3-1 in extra time, setting up a clash with England. Monsoon Watch: Nepal’s disaster authority and meteorology offices warn of heavy to very heavy rainfall in parts of Koshi, Bagmati and Gandaki, with flash floods, landslides and inundation risks—especially around rivers and landslide-prone settlements. Tourism Safety: Mustang reports 59 tourist deaths from altitude sickness over five years, urging better preparedness for pilgrims and elderly travellers. Farmers’ Supply: The agriculture ministry has urged fertiliser dealers to collect quotas from depots and distribute urea/DAP on time for the paddy season. Local Development: Khajura Rural Municipality in Banke built an alternative road to ease travel between Nepalgunj and Gulariya, while Nepalgunj Sub-metropolis approved a Rs 1.76 billion budget for urban projects. Governance Debate: UML’s Niraj Acharya and Rastriya Mukti Party’s Rajendra Mahato both criticised the government’s first 100 days and handling of flood-displaced squatters. Economy & Markets: Gold rose Rs 600 per tola to Rs 288,000; silver slipped Rs 35 to Rs 4,475.

Flood Response & Displacement: Squatter holding centres in Kirtipur were inundated after Bagmati river flooding, forcing residents to flee and rescue teams to move people to safer buildings, while a separate case saw 54 of 154 residents rescued from a flooded shelter. Public Safety & Disaster Systems: Nepal launched the disaster hotline 1234 across all 77 districts, replacing 1149, to speed up reporting and rescue coordination. Energy & Regional Power: The EU launched a €5 million South Asia energy connectivity project in Kathmandu to boost cross-border electricity markets across Bangladesh, Bhutan, India, Nepal and Sri Lanka, and ADB revised Nepal’s 2026/27 growth forecast up to 3.9% on stronger hydropower output. Markets & Business Climate: NEPSE fell 1.98% last week, wiping out about Rs 91 billion in investor book value, while the Infrastructure Ministry revoked licenses of 44 construction firms for non-renewal. Infrastructure & Roads: A Bailey bridge was installed over Mai Khola in Ilam to restore connectivity after last year’s floods, and Muglin-Pokhara road expansion work is set to resume from FY 2083/84 after compensation disputes. Social Unrest & Accountability: Protests erupted after ride-sharing driver Ganesh Nepali died following self-immolation, with lawmakers demanding accountability and a probe committee formed; KMC pledged support to his family. Health & Human Interest: Ashwin Raut, who set himself on fire in Buddhanagar, died at Bir Hospital, while seven youths stranded in Banganga stream were rescued after sudden water rise. Sports: NSC distributed sports attire to national team athletes and coaches under Mission-2026 ahead of the Asian Games.

Supreme Court Challenge: The Nepali Congress has filed a writ at the Supreme Court seeking annulment of key provisions in the House of Representatives Regulations, 2026, arguing they clash with the Constitution and weaken the National Assembly’s role; the case is set for a Constitutional Bench hearing on July 16. Monsoon Watch: The Department of Hydrology and Meteorology says light to moderate rain with thunder and lightning is likely in many hilly areas, with heavy rainfall possible in a few districts, as monsoon winds stay active. Construction Crackdown: The Infrastructure Ministry has automatically canceled the licenses of 44 construction firms for failing to renew on time, while revenue collection is reported to have improved to about 79.49% of target by mid-June. Central Bank Move: Nepal Rastra Bank has directed banks to reduce dormant accounts by mid-2026 and to regularly contact customers before accounts become dormant. Policy Update: The government unveiled a National Advertisement Policy-2083 to bring digital and AI-generated ads under regulation and strengthen consumer protection. Election Administration: Dr. Janaki Kumari Tuladhar has been designated Acting Chief Election Commissioner, as parliamentary hearings begin for EC nominees. Energy & Economy: PM Balen Shah told IPPAN that energy is central to economic transformation and exports, while gold and silver prices rose in the domestic market. Public Safety: Police report a man critically burned after setting himself on fire in Kathmandu following a domestic dispute, and the Parliamentary Hearing Committee has invited complaints against EC nominees within 10 days.

Energy & Economy: PM Balendra Shah told IPPAN that energy is the “basis” of economic transformation, promising smoother coordination on power purchase, transmission, land/forest access and private investment. Diplomacy & Trade: UAE Minister for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi met President Ramchandra Paudel, with talks on Nepal-UAE ties; Nepal also reiterated its commitment to the One China Policy. Parliament & Accountability: Lawmakers demanded a fair probe and compensation after ride-sharing driver Ganesh Nepali died following self-immolation; Home Minister Sudhan Gurung said preparations were made to send him to India and a five-member DIG-led committee is investigating. Courts & Rights: The Supreme Court issued an interim order halting asset-declaration compulsion and pausing asset probes for former judges and ex-military persons. Economy Watch: NRB unveiled a “cautiously flexible” monetary policy for 2026/27 and plans to collect Rs 60 billion via a 19-day deposit instrument; gold rose Rs 2,700 per tola and NEPSE fell 1.13 points. Public Safety: A pedestrian died in an oxygen cylinder explosion in Gokarneshwor. Tourism/Health: 16 tourists died of high-altitude sickness in Mustang in FY 2082/83. Tech/Connectivity: Starlink bandwidth export got clearance in Bangladesh, but Nepal’s regulatory approval remains the hurdle.

Monsoon Health Watch: Fever and severe diarrhea cases are rising in Nepal as heavy rains worsen drainage and boost mosquito breeding, raising dengue risk. Burn Treatment Update: Govt says it will cover all medical costs for Ganesh Nepali’s burns and plans transfer to AIIMS, but doctors advise waiting until his condition stabilizes. Roads & Weather: Meteorology warns of rain with thunder and lightning, plus flood and landslide risks; meanwhile, the BP Highway’s Kavrepalanchok–Sindhuli section is set to reopen fast if blocked. Energy Moves: Seti Khola Hydropower has started trial generation (22 MW), and the Hetauda–Dhalkebar 400 kV line hurdle is cleared for faster work. Education Lifeline: Nepal’s mid-day meal program is highlighted as a key reason impoverished students keep attending school. Governance & Economy: President Paudel certified four bills; NRB liquidity collection totals Rs 60 billion; FNCCI calls the upcoming monetary policy “positive and balanced.” Conservation Data: Rhino translocation shows population gains but also habitat stress as animals roam beyond release zones.

Nepal-India Ties: Speaker DP Aryal met Indian envoy Naveen Srivastava, discussing parliamentary cooperation and connectivity, with both sides looking at expanded air, rail and bus links and an invitation for Lok Sabha Speaker Om Birla to visit Nepal. Parliament Watch: The government briefed the House on its first 100 days, while Speaker Aryal urged opposition to stop obstructing proceedings over PM Balendra Shah’s Nepal-India border remarks. Constitution Amendment Row: Gagan Thapa called the amendment push “immature” and said the arithmetic isn’t like a Constituent Assembly; the NCP urged consensus; NC also moved to challenge House regulations in the Supreme Court. Election Oversight: A parliamentary panel cleared the way for hearings of nominees for chief election commissioner and election commissioners, with public notice invited. Education Regulation: Cabinet-approved rules tighten oversight of foreign-affiliated colleges, including eligibility limits and quality assurance steps. Anti-Corruption & Justice: CIAA filed a case against eight civil hospital pharmacy staff over Rs 29.1m drug procurement irregularities; Nepal Telecom billing corruption defendants were acquitted by the Special Court. Public Safety: A man set himself on fire outside the Department of Passports in Kathmandu after a wheel-lock incident; police also arrested people in Biratnagar for fake citizenship certificates. Energy & Regional Power: Nepal launched an EU-backed South Asia energy connectivity initiative aimed at cross-border power trade and greener grids.

Parliament & Governance: A House committee on the May 17 incident says Speaker Dol Prasad Aryal should use special powers, including removing unparliamentary remarks from records and enforcing rules more strictly, alongside tighter security and discipline in parliament. Elections & Appointments: The Parliamentary Hearing Committee has begun hearings for Election Commission nominees, with MPs pushing for a less rushed, more procedural process and even calls for open competition in constitutional body appointments. Economy & Budget Execution: PM Balendra Shah has started formal consultations with the private sector after his first 100 days, while MPs urged faster budget implementation and warned capital spending is lagging. Infrastructure & Power: The government cleared long-stalled forest hurdles for the 400kV Dhalkebar–Hetaunda transmission line, aiming to cut outages and improve east-west power flow. Public Safety & Weather: Bagmati Province reported disaster losses of over Rs. 283M, and meteorologists warn of thunderstorms and heavy rain across Nepal. Foreign Relations: UAE and China engagement topped talks, with Nepal seeking more investment and smoother procedures for Nepalis abroad. Transport & Compliance: Kathmandu Valley Traffic Police say 261,000 drivers haven’t paid fines and will be blocked from transport services; government payments for FY 2082/83 end tonight. Social Issues: Singer Ipsal Sanjal apologized over menstruation-related remarks; police arrested intermediaries at Jadibuti for harassing passengers. Business & Industry: Registrations of micro, cottage and small enterprises fell about 75% in five years despite policy push.

Parliament Watch: The Federal Parliament Secretariat has been told to implement the committee report on the May 31 scuffle in the House of Representatives, after the Speaker received it on June 8. Banking & Finance: Eighteen MPs have filed amendments to the Nepal Rastra Bank Third Amendment Bill, pushing ideas like digital and provincial bank concepts, updated director qualifications, and governance-related changes. Monetary Policy: Nepal Rastra Bank unveiled its monetary policy for FY 2081/82, aiming for 7% growth and keeping inflation within 5.5%, while also shifting some rules into separate documents. HoR Developments: The HoR unanimously sent the Tourism Bill 2082 and the NRB Third Amendment Bill 2083 to committees for clause-by-clause review, as opposition MPs pressed for government clarification and accountability. Digital Services: The PM’s “Hello Sarkar” received 131,875 complaints so far, with 70% resolved, and passport services will close for two days for system migration. Energy Push: At Power Nepal Conclave 2026, Energy Minister Biraj Bhakta Shrestha set a goal to raise per-capita electricity use to 1,500 kWh by 2030. Weather Alert: DHM warned of moderate flash-flood risk in several districts due to monsoon rains. Markets: NEPSE fell 30.09 points to close at 2,621.50.

ADB–PM Shah Talks: ADB President Masato Kanda met Prime Minister Balendra Shah in Kathmandu, pledging stepped-up support and signing two loan deals worth $165 million—$115m for water and sanitation for 850,000 people and $50m to modernize border goods movement through digitalization. Monetary Policy Focus: Nepal Rastra Bank unveiled a flexible monetary policy for FY 2083/84, aiming to back 7% growth while keeping inflation under 5.5%, with reforms to cut bank capital costs, manage non-performing loans, and revive stressed lending. Private Sector Push: PM Shah also held a dialogue with major industrialists and business leaders to boost investment confidence and economic revitalization. Clean Water Oversight: A parliamentary committee ordered the government to provide a clear action plan within 15 days for reliable clean drinking water across all 77 districts. Bird Flu Update: Bird flu is contained in most districts, but risk remains in Kathmandu Valley and is worsening in Kavrepalanchok; relief of Rs 520m is planned for affected poultry farmers within a week. Courts & Accountability: Kathmandu District Court convicted former Deputy PM Top Bahadur Rayamajhi, former Home Minister Bal Krishna Khand, and 20 others in the fake Bhutanese refugee scam, with sentencing set for July 13. Power Reliability: The Energy Ministry launched a monsoon campaign to reduce frequent power tripping, urging outages to be reported via NEA hotlines 1150/1151. Weather Watch: DHM reported below-normal rainfall in Madhesh and Lumbini, while monitoring stations are being expanded in Karnali to improve forecasting and early warnings. Traffic Crackdown: Kathmandu Valley traffic police fined 2,076 vehicles in 24 hours, collecting Rs 1.97m.

Fake Bhutanese Refugee Scam Verdict: Kathmandu District Court convicted former Deputy Prime Minister Top Bahadur Rayamajhi, former Home Minister Bal Krishna Khand and former Home Secretary Tek Narayan Pandey, along with 20 others, in the case involving fraudulent verification of Nepalis as Bhutanese refugees for third-country settlement; seven accused were acquitted and sentencing is set for a later hearing. Home Ministry on Governance: Home Minister Sudhan Gurung told the National Assembly the Home Ministry will focus on lasting peace, good governance and impartial security, with Rs 5 billion earmarked for earthquake and monsoon reconstruction of private houses. NRB Monetary Policy: Nepal Rastra Bank unveiled a “flexible” monetary policy for 2026/27, targeting 5.5% inflation and 7% growth support, expanding loans by Rs 652 billion, while allowing commercial banks to invest in foreign government bonds; NRB also flagged bad loans rising to 5.41% and warned real-estate-linked lending risks. ADB Support: ADB President Masato Kanda said ADB backing to Nepal is expected to reach $2.4 billion by 2029, including $165 million in new loan agreements signed during his visit. Parliament on National Issues: National Assembly members pressed the government on elephant menace, Madhesh security, Chure water drying due to extraction, and other law-and-order concerns. Monsoon Hazard Watch: Reports warn of flash-flood and landslide risk across the Hindu Kush Himalaya as longer dry spells can be followed by intense local downpours.

Court Verdict: Nepal’s Special Court acquitted former communications minister Mohan Bahadur Basnet and most defendants in the Teramax procurement case, while a separate Teramocs case saw convictions of then NTA chair Digambar Jha and others. Central Banking: Nepal Rastra Bank is finalizing the monetary policy for FY 2083/84 and released the FY 2082/83 review, including a tighter interest-rate corridor, higher share-mortgage and overdraft limits, and easier collateral rules for SMEs and agriculture. Economy & Markets: NRB called bids for Rs 25 billion in one-year debt bonds; real estate transactions jumped in Q3 FY 2082/83, and NEPSE saw mixed movement. Power & Infrastructure: ADB President Masato Kanda met Finance Minister Dr. Swarnim Wagle and inaugurated Markichok and Mulpani substations to improve Kathmandu Valley power reliability; Sanga underpass nears completion. Agriculture & Food Security: Paddy plantation is lagging at 32.38% nationwide, and farmers face price pressure as vegetables dump on markets. Social Issues: DoMLI ordered Jaybir Deuba to appear within seven days in a money-laundering probe; a public list of Tulsi cooperative loan debtors was released; and flood/landslide risk planning for Phuentsholing highlights long-term mitigation needs.

ADB Deal: Nepal and the Asian Development Bank signed two financing agreements worth $165 million, including $115m for climate-resilient water supply and sewerage in 12 municipalities and $50m for customs/logistics reforms to boost trade and jobs. Monsoon & Crops: The delayed monsoon has slowed paddy transplantation to 32.38% of cultivated area, down from 45% last year, but officials say it’s not yet a cause for alarm. Economy Watch: Nepal’s Q3 growth is estimated at 3.51%, led by a strong electricity and gas sector (+24.88%), while agriculture, construction and manufacturing lagged. Parliament & Governance: The House Speaker ordered the government to respond to MPs’ concerns and update disaster preparedness, while National Assembly lawmakers pressed for action on Dalit rights, road safety, inflation and gender equality. Security & Rights: Home Minister Sudhan Gurung inspected border security and elephant-hit areas in Jhapa; Kathmandu police launched a week-long campaign against narcotics and human trafficking. Markets: NEPSE fell 26.29 points to close at 2,627.11. Tech & AI: DataHub and Hosted AI launched YetiCloud.ai, aiming to make GPU-based AI infrastructure available in Nepal.

Gorkhapatra Corporation Reform: New GM Hikmat Bahadur Rawal assumed office and pledged to strengthen trust, push digital and economic transformation, and reform both content and newsroom mindset. ADB Visit: ADB President Masaro Kanda arrived in Kathmandu for meetings with PM Balendra Shah and Finance Minister Swarnim Wagle, plus visits to ADB-backed projects worth about $4 billion. Monsoon Watch: Meteorology warns of moderate to heavy rain with thunderstorms in several provinces and a moderate flash-flood risk in 14 districts, urging people near rivers to stay alert. Gold/Silver Update: Gold fell by Rs 900 per tola to Rs 289,400; silver dropped Rs 20 to Rs 4,585. Border Tensions: Nepali Congress MP Sita Thapaliya Urmila says a PM statement has hurt tourism at the Thori border crossing in Parsa after Indian tourist vehicles were stopped. Media Reform Dialogue: Information and Communication Minister Dr. Bikram Timilsina urged journalists to pursue formal dialogue with constructive proposals, stressing government commitment to press freedom. Crime & Drugs: Police arrested an Indian national in Parsa with over 102 kg of marijuana; separate reports also highlight job-fraud arrests and drug busts. Infrastructure Progress: Nagdhunga–Mugling road expansion (Naubise–Malekhu) shows 60% overall progress, with work resuming after bitumen supply issues. Culture & Sports: Sarwanam Theatre inaugurated a Sarwanam Library; meanwhile, Nepal’s sports minister’s “100 days” claims drew criticism for limited concrete sports-education linkage.

Karnali River Search: A bus that plunged into the Karnali River four days ago is still missing, with Nepal Police, Army and Armed Police Force continuing the hunt using motorboats, drones and a helicopter, and a specially trained divers team expected to join. Supreme Court Challenge: Nepali Congress says it will file a writ petition in the Supreme Court against House of Representatives Rules on constitutional amendments and special privileges to the rules, arguing the process should have gone through a parliamentary committee. Monetary Policy Push: Stakeholders urged Nepal Rastra Bank to issue a timely, balanced, growth-oriented monetary policy to restore confidence, support production and keep financial stability. Healthcare Update: Health Minister Nisha Mehta inspected BPKIHS and promised to expand maternal and child services, including early operation of the MCH Centre and introduction of MRI services. Banking Win: Nepal SBI Bank won four Asian Banking & Finance awards in Singapore for liquidity management, trade finance, retail banking and SME banking. Identity & Fraud Case: Indian authorities registered a case against 27 Nepalis over alleged Aadhaar and benefits fraud using forged identity claims. Tourism & Economy: World Bank kept Nepal in the lower-middle-income category, while domestic tourism contributed 2.65% to GDP in FY 2024/25. Energy Projects: Rasuwagadhi hydropower resumed supplying 74 MW after flood repairs, and Seti Khola hydropower began test production for 15 days. Traffic Enforcement: Kathmandu Valley traffic police fined 1,813 drivers in 24 hours, collecting over Rs 500,000.