KATHMANDU, April 5: Nepal’s advertising market has long been opaque and heavily influenced by middlemen. Media outlets bill advertising agencies at one rate, while agencies send invoices to the government at a different, often higher, rate. In the process, a large sum disappears into a “gray area” of opacity. In the name of curbing intermediaries and ensuring financial discipline, the government’s decision to channel all types of government advertisements and notices exclusively through state-owned media appears, frankly, half-baked.
Various stakeholders, institutions, and experts have opposed the move. They argue that private media, which pay taxes to the state, should not become targets of the same state. The Office of the Prime Minister and Council of Ministers issued a circular at the secretary level on Wednesday, directing all federal, provincial, and local bodies to place advertisements only in government media.
Experts see this as an attempt to weaken the private sector, a pillar of independent journalism. If advertising agencies and officials colluded to siphon off large portions of advertising budgets and produced fake bills that cost the state billions, then stopping such malpractice should have been the priority.
Instead, restricting public funds to state-owned media while excluding the private sector raises serious questions of fairness. Moreover, once a media outlet becomes a public company with shares owned by thousands of ordinary citizens, calling it merely “private” becomes misleading. Such institutions are, in effect, public assets.
To curb corruption and reduce middlemen influence, Nepal Republic Media Limited has already lowered its advertising rates. Through a public notice, it was announced that, starting with January 15, 2026, advertisements would be published at simpler and more transparent rates. The decision reflects the country’s current economic pressures, strain on public resources, and the need for transparency. With the government formed after the Gen Z movement carrying responsibilities such as conducting elections, accelerating development, and running daily administration, media observers have noted that government advertising expenditure remains high.
According to Nepal Republic Media, the existing practice involved two-tier billing through agencies. Media billed agencies at one rate, and agencies billed the government at another, increasing opacity and irregularities. The new approach aims to end this practice.
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On November 24, 2025, the government mandated media billing. Supporting this system, media outlets have committed to issuing invoices only for the actual amount they receive, thereby preventing irregularities. “We will issue bills only equal to the amount we are paid,” the notice states, adding that reduced rates are intended to ensure that the benefit directly reaches the government.
The organization estimates the total government advertising market at around five billion rupees and believes reforms could significantly reduce this figure. The saved amount, it argues, could be redirected toward infrastructure and capital expenditure. A revised rate structure has also been introduced, lowering per column-centimeter costs, offering additional discounts after agency commissions, and urging all government bodies to adopt simplified rates.
New debate on rate structures
With Nepal Republic Media implementing transparent rates from January 23, 2026, a broader debate has finally begun in the advertising market. This move goes beyond business and touches on social responsibility. The initiative explicitly aims at controlling corruption, promoting transparency, and easing the state’s financial burden. It also commits to eliminating the gray areas in advertising, tightening third-party billing, and implementing a transparent system.
The media argues that in the digital age, maintaining credibility requires internal reform and a commitment to factual reporting. Amid growing challenges from social media, such reforms are seen as essential. The decision came at a time when the government had already moved to exclude private media from government advertising. As private outlets face mounting financial pressure, this step by Republic Media has sparked a wider conversation. Stakeholders believe it will both enhance transparency and push other media houses toward reform.
Framed as a message to “eliminate middlemen and save journalism,” the move signals a push toward better management of public spending, cleansing the media sector, and enforcing long-term fiscal discipline. However, the government’s directive restricting advertisements to state-owned outlets has simultaneously raised concerns about the future of journalism.
Although the government claims its decision aims at transparency and cost control, its direct impact falls on independent, public-oriented journalism. Balancing transparency with the need to preserve diverse and independent media remains crucial.
In the digital era, the growing influence of social media has already challenged the credibility of journalism. In this context, Nepal Republic Media maintains that fact-based, responsible, and transparent journalism is essential. The initiative to curb middlemen influence was even communicated by Chairperson Shobha Gyawali to the then interim Prime Minister and Finance Minister.
Government circular
A recent three-point circular from the Office of the Prime Minister directs all government bodies, commissions, secretariats, and provincial and local levels to publish and broadcast government notices only through state-owned media. This effectively limits such information to outlets like Gorkhapatra, Nepal Television, and Radio Nepal. Private media warn that this will severely damage their financial base. Government advertising forms a major share of media revenue in Nepal, and restricting it to state outlets could significantly harm private players. Many see this as a form of state-backed syndicate.
The decision also raises questions about federalism. Provincial and local governments have criticized the directive as unconstitutional interference in their jurisdiction. Article 232(1) of the Constitution clearly states that relations between federal, provincial, and local levels should be based on cooperation, coexistence, and coordination. Schedules 6 to 9 further define the powers of each level of government.
Widespread opposition
Private media, the Federation of Nepali Journalists, the Advertising Association of Nepal, the Media Society, and the Nepal Press Union have all issued statements opposing the decision. The Federation has expressed serious concern, disagreement, and objection, describing the move as an attempt to create conditions akin to press censorship.
While the government defends the policy as necessary to curb irregularities in the advertising market, critics argue that the focus should be on eliminating corruption, not excluding legitimate stakeholders. Cutting off financial support to private and publicly owned media cannot be justified under any notion of natural justice. Advertising is not merely an economic activity; it is also a channel of information dissemination. Removing widely read media from this responsibility is fundamentally unfair. Citizens must have access to information through platforms of their choice. From the perspective of the right to information, the decision appears deeply flawed.
Nepal’s current economic model relies on cooperation between the public and private sectors. Weakening this partnership risks slowing economic momentum and further undermining the media sector, often described as the fourth pillar of democracy. Experts stress that reform should target the disease, not destroy the patient. The real solution lies in eliminating distortions and corruption within the advertising system. This decision, which strikes at the core of independent journalism, demands serious reconsideration.
A bold beginning
Nepal Republic Media Limited had already initiated a bold reform to address corruption and opacity in the advertising market. Its general assembly introduced new rates aimed at saving billions in public funds and ensuring transparency. The government allocates roughly five billion rupees annually for media advertising, yet significant irregularities persist in distribution and billing. Agencies have long exploited the gap by billing the government at inflated rates while paying media less.
To counter this, Nagarik Daily decided to publish all government advertisements at just 318 rupees per column centimeter, a sharp drop from the earlier rate of 1,400 rupees. In practice, media received far less than the official rate, while intermediaries pocketed the difference. Then Managing Director Samriddhi Gyawali stated, “We will charge the government exactly what we bill. There will be no hidden rates or opacity.” She added that the reform could reduce the government’s advertising budget from five billion to two billion rupees, freeing up three billion for infrastructure and professional development of journalists.
This initiative is expected to set a new benchmark for transparency in Nepal’s media industry and prevent misuse of public resources.
