KATHMANDU: Khabarhub brings you a glimpse of major developments of the day in Nepal, including politics, business/economy, sports, entertainment, and more.
Govt presents Rs 2.124 trillion budget for FY 2026/27, unveils sweeping tax, economic and sectoral reforms
The government has presented a total budget of Rs 2.124 trillion for fiscal year 2026/27, outlining major fiscal, tax, financial, and sectoral reforms aimed at boosting economic growth, improving public services, and attracting investment. The government has also set a revenue target of Rs 1.405 trillion for the upcoming fiscal year. Finance Minister Swarnim Wagle, while presenting the federal budget in Parliament, announced a broad reform agenda covering taxation, capital markets, agriculture, health, infrastructure, and governance.
A key tax reform includes raising the personal income tax exemption threshold from Rs 600,000 to Rs 1 million, aimed at easing the burden on middle-income earners. Capital gains tax on listed securities will now be treated as a final tax, simplifying compliance for investors and removing additional tax liability. The government also announced reforms to allow Non-Resident Nepalis (NRNs) to participate in the secondary securities market, along with updates to foreign investment approval processes, profit repatriation rules, and investment accounting systems to improve capital inflows. On fiscal discipline, the government has set a 10 percent salary increase for civil servants, with the minimum salary fixed at Rs 40,000 and the maximum capped at Rs 100,000.
In agriculture, Rs 32.46 billion has been allocated for chemical fertiliser subsidies, up from Rs 28.82 billion, to ensure continued supply of imported fertilisers. The government will also explore domestic fertiliser production through feasibility studies. Additionally, Rs 46.42 billion has been allocated to the Ministry of Agriculture and Livestock Development, along with Rs 2.07 billion for agricultural modernisation.
Govt sets 7 percent economic growth target
The government led by Prime Minister Balendra Shah has set a target of 7 percent economic growth for the upcoming fiscal year 2083/84. Finance Minister Dr. Swarnim Wagle announced the ambitious target while presenting the new budget, which also sets an economic growth goal of 6 percent for the current fiscal year. Meanwhile, the National Statistics Office has projected that economic growth this year will remain at just 3.85 percent.
Nepal to ease foreign investment rules and simplify business exit process
The government has announced measures to relax restrictions on Nepali citizens investing abroad while also streamlining procedures for closing companies. Presenting the federal budget for Fiscal Year 2026/27 in a joint session of Parliament on Friday, Finance Minister Dr. Swarnim Wagle said the government will introduce provisions to make it easier for Nepali citizens to pursue legal foreign investment opportunities. At the same time, the budget seeks to create a more investment-friendly domestic environment by addressing long-standing concerns of entrepreneurs across the full business lifecycle. Dr. Wagle announced that company liquidation and closure processes will be simplified and made less burdensome. Previously, shutting down a business in Nepal was widely considered a lengthy and complicated procedure, often taking years and requiring entrepreneurs to navigate extensive legal and administrative hurdles.
Government pledges swift exit from FATF grey list
The government has announced that it will work to remove Nepal from the Financial Action Task Force (FATF) grey list at the earliest possible time. Finance Minister Swarnim Wagle made the announcement while presenting the budget for fiscal year 2026/27 in the Federal Parliament. Presenting the annual budget, Wagle said the government is committed to strengthening financial governance, improving regulatory compliance, and accelerating reforms required for Nepal’s exit from the grey list.
Govt increases taxes on alcohol and cigarettes
The government has increased taxes on alcohol and cigarettes. Presenting the budget for the upcoming fiscal year in a joint sitting of the Federal Parliament on Friday, Finance Minister Swarnim Wagle said that the tax rates have been revised upward. Excise duty on cigarettes has been increased by around 10 percent, along with hikes in taxes on alcohol and beer. Finance Minister Dr. Wagle also announced that, from the upcoming fiscal year 2083/84, microbreweries will be registered as alcohol-producing industries and brought under the excise duty regime.
Govt’s stake in Nepal Telecom to be capped at 66 percent
The government is set to reduce its ownership in Nepal Telecom to 66 percent, selling the remaining shares to the general public by the upcoming Poush. Finance Minister Dr. Swarnim Wagle made the announcement while presenting the budget for the fiscal year 2026/27 to a joint session of the Federal Parliament on Friday. At present, institutional investors hold 91.53 percent of Nepal Telecom, while the general public owns 8.47 percent. The government plans to offload additional shares to the public while retaining a 66 percent stake. “We will use the proceeds to make Nepal a tech hub,” Wagle said. Although similar plans to reduce government ownership in the company had been announced earlier, they were not implemented. This time, the government has set a clear timeline to increase public participation in Nepal Telecom.
Govt announces 40% investment incentive for agriculture pilot program
The government has announced a new pilot program offering a 40 percent investment incentive subsidy for farmers investing in agriculture and livestock production. Finance Minister Swarnim Wagle made the announcement while presenting the national budget for fiscal year 2026/27 in the Federal Parliament. He said the government aims to transform agriculture into a respectable and profit-oriented business sector. Under the pilot program, farmers investing at least Rs 20 million in agriculture and livestock production will be eligible for the 40 percent investment incentive grant.
Govt targets 1,000 km of road blacktopping, allocates Rs 37.46 billion for East-West Highway upgrade
The government has announced plans to blacktop 1,000 kilometres of roads in the upcoming fiscal year. Finance Minister Swarnim Wagle made the announcement while presenting the budget for fiscal year 2026/27 in the Federal Parliament. He also said that Rs 37.46 billion has been allocated for the upgrading of the East-West Highway, one of the country’s major transport corridors. The announcement is part of the government’s broader infrastructure development plan aimed at improving national connectivity and transport efficiency.
Govt announces 10% salary hike for civil servants, minimum salary set at Rs 40,000
The government has announced a 10 percent salary increase for civil servants and employees paid from public funds. The announcement was made by Finance Minister Swarnim Wagle while presenting the budget for fiscal year 2026/27 in the Federal Parliament. The revision comes after a long gap in salary adjustments for government employees. Previously, salaries had been increased by 15 percent in the fiscal year 2022/23 budget under then Finance Minister Janardan Sharma. The Civil Service Act, 2049 (1992) provides for a salary and allowance review every three years based on revenue growth, number of positions, and inflation indicators. The government has set the new minimum salary at Rs 40,000, while the maximum salary has been capped at Rs 100,000, according to the budget statement.
Personal Income Tax limit raised to Rs 1 million
The government has raised the personal income tax exemption threshold to Rs 1 million. Finance Minister Dr. Swarnim Wagle announced the provision while presenting the budget for the upcoming fiscal year 2026/27 in Parliament.
Private sector to be allowed to trade electricity internationally
The government has announced plans to allow the private sector to trade electricity in the international market. Finance Minister Dr. Swarnim Wagle made the announcement while presenting the budget for the upcoming fiscal year 2026/27 on Friday.
Govt to integrate informal workers into social security system
The government has announced plans to bring workers in informal and unorganized sectors into the social security system by June. Finance Minister Swarnim Wagle made the announcement while presenting the budget for fiscal year 2026/27 in the Federal Parliament. He said the initiative aims to help resolve labour disputes and expand social protection coverage to workers who are currently outside formal employment systems.
Nepal introduces sovereign wealth fund, eases foreign investment exit rules
Finance Minister Dr. Swarnim Wagle announced wide-ranging financial and regulatory reforms aimed at strengthening capital mobilization and attracting foreign investment while presenting the federal budget for Fiscal Year 2026/27 before a joint sitting of the Federal Parliament on Friday. A key highlight of the budget is a new policy to channel a portion of Nepal’s foreign exchange reserves into a proposed Sovereign Wealth Fund. The government said this initiative will be supported by the country’s strong reserve position, which currently stands at a record level of around Rs 3.494 trillion. To further improve the investment climate, the budget also introduces measures to simplify exit procedures for foreign investors. Under the new framework, foreign investors will no longer need prior approval from Nepal Rastra Bank to repatriate profits or return capital from Nepal.
Budget to set standard for good governance: Finance Minister
Finance Minister Dr. Swarnim Wagle has expressed confidence that the upcoming budget will establish a benchmark for good governance. Initiating the budget speech for Fiscal Year 2083/84 BS (2026/27) at a joint session of the Federal Parliament, the Minister said the new budget aims to bring reforms across policies, laws, institutions, procedures, and leadership, thereby strengthening good governance. “Ending policy indecision, the culture of delay, institutional capture, and misuse of state resources, and establishing result-oriented governance is the need of the hour,” he said. Stating that the country is at a decisive stage of comprehensive economic reform, Wagle said the budget is focused on large-scale transformation in the economy and governance system. He added that its main priorities include a production-based economy, good governance, and technology-driven development. Describing the public mandate as a major responsibility, the Minister said the government is working toward transforming the state’s governance culture, institutional structure, and economic model.
Govt doubles nurses’ night allowance
The government has announced a twofold increase in night-shift allowances for nurses working in public health facilities. Presenting the federal budget for Fiscal Year 2026/27, Finance Minister Dr. Swarnim Wagle said the decision is intended to boost morale and improve the welfare of frontline healthcare workers. The government has also committed to upgrading burn treatment services at Bir Hospital and Kirtipur Hospital, aiming to enhance emergency response and specialized care for burn patients.
Govt unveils industrial reform package with women-focused incentives
The government has introduced a wide-ranging industrial reform package in the federal budget for Fiscal Year 2026/27, featuring concessional loans for women entrepreneurs, reduced electricity tariffs for industries, and private-sector management of the Motipur and Mayurdhap industrial zones. Presenting the budget in Parliament, Finance Minister Dr. Swarnim Wagle said women-led enterprises will be given priority access in Special Economic Zones (SEZs). He also announced the introduction of a single-window system to streamline tax, customs, and investment procedures. In addition, industries operating on leased land within industrial zones and SEZs will be permitted to use their physical infrastructure as collateral for securing bank loans.
Govt declares capital gains tax on listed shares as final tax
The government has announced that capital gains tax on the sale of shares of listed companies will now be treated as a final tax. Finance Minister Dr. Swarnim Wagle made the announcement while presenting the federal budget for Fiscal Year 2026/27 in a joint sitting of Parliament on Friday. “In the case of securities transactions of listed companies, I have made arrangements for capital gains tax to be treated as final,” he said during his budget speech. Under the new provision, investors will not be required to pay any additional tax on income once capital gains tax has been settled, and such earnings will no longer be included in taxable income for further assessment. Earlier, capital gains tax was applied at different rates depending on the holding period of shares—7.5 percent for holdings of less than one year and 5 percent for holdings exceeding one year. With this change, once capital gains tax is paid on profits from share trading, no further tax liability will apply to that income.
Motipur and Mayurdhap Industrial Zones to be handed to private sector
The government has announced that the private sector will be entrusted with the construction and operation of industrial zones, including Motipur and Mayurdhap. The Confederation of Nepalese Industries has already proposed developing industrial zones in Motipur and Mayurdhap. Finance Minister Dr. Swarnim Wagle said priority will be given to women entrepreneurs in the Panchkhal Special Economic Zone. “We will provide additional concessional credit flow to women entrepreneurs. We will establish a special economic administration system where all decisions related to taxes, customs, imports, and investment in the special economic zone will be handled from a single point,” Finance Minister Wagle said while presenting the budget.
Nepal to be promoted as a destination for ‘Wellness Tourism’
The government has announced plans to position Nepal as a global hub for wellness tourism in the international travel market. Presenting the federal budget for Fiscal Year 2026/27 before a joint session of the Federal Parliament, Finance Minister Dr. Swarnim Wagle said tourism development has been given high priority. He added that financial incentives will be provided for the construction of luxury hotels and resorts to boost the sector. He also said the Civil Aviation Authority of Nepal (CAAN) will be restructured by mid-January next year to improve Nepal’s standing on the European Union aviation safety list. As part of the reform, CAAN will be split into separate regulatory and licensing bodies.
Harka Sampang walks out during budget presentation
Shram Sanskriti Party Chair Harka Sampang walked out of Parliament while the budget for the upcoming fiscal year was being presented. Finance Minister Dr. Swarnim Wagle was presenting the budget in a joint sitting of the Federal Parliament when Sampang exited the meeting. He said he left the session due to other important commitments. “Other friends from my party are inside. I have another important work to do, that’s why I walked out,” Sampang said.
19th Republic Day observed today
The 19th Republic Day was observed across the country today with various celebratory programs. The day marks the establishment of the Federal Democratic Republic of Nepal, officially declared on May 28, 2008 (Jestha 15, 2065 BS), when the first Constituent Assembly elected by the people formally abolished the monarchy. To mark the occasion, the government had declared a public holiday, while a special program was held at the Army Pavilion in Tundikhel, Kathmandu. Nepal’s transition to a republic began after King Gyanendra assumed direct rule on February 1, 2005. In response, a 12-point agreement was signed between the Seven-Party Alliance and the then CPN (Maoist), bringing together previously divided political forces in a joint movement for full democracy.
Republic Day has guaranteed citizens full political rights, says President Paudel
President Ram Chandra Paudel has said that the republican system has ensured citizens’ full political rights and serves as a great source of inspiration and responsibility for nation-building. Addressing a special ceremony held at Tudikhel on Friday to mark the 19th Republic Day, the President said the republic has united the people, inspired a shared commitment to nation-building, and strengthened citizens’ sense of ownership over their language, culture, religion, identity, and homeland. “Republicanism is not merely a system of governance; it is also a way of political, economic and social life guided by values, principles and ethical boundaries,” Paudel said. “Without understanding and upholding these ideals, we cannot fulfil our historical responsibilities.”
Ujyalo Nepal Party, Hamro Party Nepal announce merger
The Ujyalo Nepal Party and Hamro Party Nepal have formally merged following the signing of a seven-point agreement. The agreement was signed at the central office of Ujyalo Nepal Party in Tripureshwor by the party’s General Secretary, Dharma Chaudhary, and Hamro Party Nepal’s General Secretary, Darbiram Pariyar. Under the agreement, the two parties have committed to jointly advancing the principles of the people’s movement, social justice, inclusiveness and proportional representation as their shared political agenda. They have also pledged to work together in the fight against corruption and poor governance. The agreement further states that both parties will undertake policy and practical initiatives to eliminate caste-based discrimination, untouchability, humiliation and social exclusion faced by the Dalit community.
RPP Chair Lingden urges implementation of NHRC report on Gen-Z movement
Rajendra Lingden, chairman of the Rastriya Prajatantra Party (RPP), has called for the implementation of the National Human Rights Commission’s report related to the Gen-Z movement. Speaking at a flag-hoisting program organized at the party office in Chabahil on Friday to mark the party’s foundation day, Lingden said the commission’s preliminary report had revealed many important issues and stressed that the government should move toward implementing its recommendations. Stating that the current government was formed with an unprecedented public mandate, he emphasized that it should avoid actions that undermine the hopes and trust of the people. Lingden noted that Nepal’s political history has not seen a single party with a majority completing a full five-year term in government, adding that the current ruling force does not have the luxury of repeating the mistakes made by past political parties.
Gold price rises Rs 5,600 per tola in a day, silver also gains
The price of gold in the domestic market surged by Rs 5,600 per tola on Friday, a day after it had fallen by Rs 5,500 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of fine gold has been fixed at Rs 290,600 per tola for Friday. The association said the increase follows a rise in gold prices in the international market, which has also affected domestic rates. Meanwhile, silver prices also increased on Friday. The price of silver rose by Rs 175 per tola to Rs 5,040, up from Rs 4,865 per tola on Thursday.
Nepal’s cooperative sector grows to 32,325 institutions, mobilizes over Rs 1.029 trillion
The number of cooperatives registered across Nepal has reached 32,325 as of mid-March of the fiscal year 2025/26, according to the Economic Survey for FY 2082/83 released by the Ministry of Finance. The survey states that the cooperative sector has mobilized savings worth Rs 1.029 trillion, while providing direct employment to 82,216 people nationwide. The Cooperative and Poverty Management Information System (COPOMIS), developed to maintain integrated statistics related to cooperatives, has enrolled 19,903 cooperatives as of March. The number stood at 18,897 by the end of the previous fiscal year in July 2025. The National Cooperative Regulatory Authority, which oversees regulation of Nepal’s cooperative sector, has issued operating licenses to 834 cooperative institutions. Among the 23 cooperatives declared problematic by the federal government, three institutions have completed settlement procedures, while asset management and liability settlement of the remaining 20 institutions are still pending.
Govt allocates Rs 4.3 billion allocated for sports sector
The government has allocated Rs 4.3 billion for the sports sector. Finance Minister Dr. Swarnim Wagle shared the information while presenting the budget speech for the upcoming fiscal year 2083/84. The budget also includes a provision for lifelong healthcare support for athletes who win international medals, ensuring they can lead a dignified life after retirement.
RPP marks 36th anniversary with flag-hoisting ceremony
The Rastriya Prajatantra Party marked its 36th anniversary on Friday with a flag-hoisting ceremony and a goodwill exchange program. The event was held at the party’s central office in Chabahil to commemorate the party’s entry into its 36th year. Party leaders, members and supporters participated in the programme, exchanging greetings and best wishes on the occasion. The anniversary celebration also featured the hoisting of the party flag at the party headquarters.
Everest Day: Nepal’s pride before the world
Various programs were held today to mark Everest Day, commemorating the historic achievement of scaling the world’s highest peak. The day is observed every year in memory of May 29, 1953, when New Zealand mountaineer Edmund Hillary and Nepal’s Tenzing Norgay Sherpa successfully reached the summit of Mount Everest for the first time. Mount Everest is not only a mountain for Nepal but also a symbol of national pride, tourism development, and international identity. According to the Department of Tourism, more than 8,000 climbers have successfully summited Everest. Eight of the world’s 14 highest peaks are located in Nepal. Following a joint remeasurement by Nepal and China in 2021, the height of Mount Everest has been officially determined at 8,848.86 metres. On the occasion of the day, government agencies, tourism entrepreneurs, mountaineering organisations, and local bodies have organised programs focused on mountain tourism, safe climbing, and environmental protection.
Tree falls inside Nepal Airlines premises amid storm, damages gate and wall
A large tree fell inside the premises of Nepal Airlines Corporation on Thursday evening following strong winds and rainfall, causing damage to the corporation’s gate and boundary wall. According to Nepal Airlines, the incident occurred at around 8 pm when the tree collapsed within the corporation’s compound. Efforts to remove the fallen tree are currently underway with the assistance of the Kathmandu Metropolitan City. The corporation said no human casualties or injuries were reported in the incident. However, movement within the premises was temporarily disrupted after the tree fell due to the strong winds. The Kathmandu Valley has witnessed continuous rainfall and windstorms in recent days, increasing the risk of weather-related incidents.
Achieving the goal of prosperity is today’s need: President Paudel
President Ram Chandra Paudel has said that strengthening responsible and people-oriented service delivery through the federal democratic republican system and achieving the goals of good governance, development and prosperity are today’s national needs. In his message of best wishes on the occasion of the 19th Republic Day today, President Paudel stressed the need for collaboration among all levels of government, the private sector and civil society to achieve the Constitution’s vision of social justice, economic prosperity and inclusive development.
26,680 students to appear in KMC scholarship exam
A total of 26,680 students will participate in the scholarship entrance examination for Grades 11 and 12 to be conducted by Kathmandu Metropolitan City (KMC) on Sunday. According to KMC, all 26,680 applicants have been qualified after 208 out of 26,888 applications were rejected. Education Officer and Examination Committee Member Secretary Ramchandra Khadka said students can download their admit cards through the same online system used for submitting applications. The Kathmandu Metropolitan City has made it mandatory to print the admit card in colour. The scholarship entrance examination for institutional schools operating Grades 11 and 12 within the metropolitan area will be held on May 31.
Former President Bhandari calls for unity to build self-reliant economy
Former President Bidya Devi Bhandari has called for a firm commitment to making the values and principles of the democratic republic more mature, effective and result-oriented. Extending heartfelt greetings to Nepali citizens at home and abroad on the occasion of the 19th Republic Day, she wished for peace, happiness, prosperity and continued progress. She said, “On this auspicious occasion of Republic Day, I call upon all state bodies, political parties and the public to remain committed to strengthening the values and norms of the federal democratic republic in a more mature and result-oriented manner.”
76th Annapurna Ascent Day to be marked
Preparations are underway to mark the 76th Annapurna Ascent Day next week in Narchyang, located at the base of Mt. Annapurna. Annapurna Rural Municipality-4 Narchyang in Myagdi, which hosts the base camp and climbing route of the 8,091-metre Annapurna peak spanning Myagdi, Kaski, Manang and Mustang districts, is preparing to celebrate the day with various programmes. Ward Chair Lok Bahadur Pun said the celebrations will include a Base Camp–Narchyang race, a Humkhola–Base Camp trekking programme, and cultural events.
One person dies in jeep accident
One person died and two others were seriously injured in a jeep accident in Nuwakot last evening. According to Chief Police Inspector Binod Dhakal of the District Traffic Police Office, Nuwakot, 35-year-old Sanjeev Kumar Chaudhary of Sukhipur Municipality-2, Siraha, died after being seriously injured in the accident at Gurjebhanjyang in Shivapuri Rural Municipality-6 along the Chhare-Tokha road section. He was declared dead upon arrival at Grande Hospital in Kathmandu, where he had been taken for treatment. Police identified him through the driver’s licence he was carrying.
Nepal exports goods worth Rs 88 billion in 10 months
Goods and services worth Rs 88.22 billion were exported during the first 10 months of the current fiscal year. During the same period in the previous fiscal year, exports stood at Rs 83.25 billion, according to Uday Singh Bista, Information Officer at the Birgunj Customs Office. In the current fiscal year, refined soybean oil worth Rs 48.11 billion, refined sunflower oil worth Rs 5.35 billion, and fruit juice worth Rs 6.42 billion have been exported. Likewise, textiles worth Rs 3.30 billion and synthetic yarn worth Rs 2.25 billion were also exported during the review period.
Melon farming becoming a center of attraction in Udayapur’s Chaudandigadhi
Commercial melon farming is emerging as a major attraction in Hadiya of Chaudandigadhi Municipality-9, Udayapur. The sandy land that had become barren due to river erosion a few years ago is now covered in greenery. Local young farmer Pulkit Chaudhary has set an example by starting organic melon farming on around six bighas of land. Chaudhary, a farmer, said that more than 3,000 kilograms of melons have been produced this year alone, at a time when demand for the fruit is increasing during the summer season. He said the pesticide-free, tasty, and juicy melons have received a positive response in the market. He also plans to expand the farming area to nine to 10 bighas next year by leasing additional land.
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