DILIP PAUDEL

The pilot project confirmed that the new system works effectively.

Since Prime Minister Balendra Shah and Finance Minister Swarnim Wagle took the oath of office on March 27, the Nepal Stock Exchange (NEPSE) index has fallen from 2,879 points to 2,652.93 as of Wednesday. 

According to the Financial Comptroller General Office, the government had spent only 34.87 percent of the capital budget as of June 27. Out of the Rs 407.88 billion allocated for capital expenditure this fiscal year, only Rs 142.23 billion has been spent.

In its latest report released this week from Paris, FATF noted shortcomings in Nepal's anti-money laundering system, capacity to investigate and prosecute financial crimes, efforts to curb illegal hundi transactions, and risk-based supervision mechanisms.

The government has unveiled a new infrastructure development strategy, preparing to launch projects worth nearly Rs 1.15 trillion over the next three years in an effort to accelerate construction and overcome long-standing delays in project implementation.

Despite commanding nearly two-thirds of parliamentary support, the government has unveiled the FY 2026/27 budget, which cuts capital expenditure and fails to address Nepal’s weak spending capacity.

Consumers, dealers and industries bear the burden as full cylinders remain unavailable

The government’s move is being viewed as an important step toward building an innovation-driven economy. 

Despite heavy investment and new expansion targets, over half of Nepal’s arable land still lacks irrigation, keeping agriculture heavily dependent on monsoon rainfall.

Budget fails to address crisis