Nepal business, finance and trade news, every Wednesday.
Nepal Ends Flood Search With 5,285 Still Missing
Nepal has ended the search for 5,285 people still missing after the August Bhotekoshi-Trishuli disaster. Official counts list at least 1,453 dead. The government is working out how to declare more of those missing “dead” so that families can settle insurance claims and manage bank accounts. The energy minister told parliament that more than 800 workers at 12 damaged hydropower projects are still unaccounted for, and a disaster council has recommended Rs 559 billion ($3.7 billion) for reconstruction, a figure that will need Finance Ministry approval.
Read more: Reuters (legal status of the missing), Spotlight Nepal (reconstruction proposal), Independent (missing hydropower workers), myRepublica (international recovery appeal), Times of India (missing foreign nationals)
World Bank Cuts Growth Forecast to 3.7 Percent
The World Bank expects Nepal's economy to grow 3.7 percent in the fiscal year ending in mid-July 2027 as flood damage weighs on industry and services. It foresees a rebound to 5.2 percent the year after that; the government's target remains 6 percent. The bank estimates direct physical damage at $1.66 billion, a little below the government's early $1.81 billion estimate.
Read more: The Kathmandu Post (growth and damage estimates), Spotlight Nepal (recovery outlook)
China Pitches Korala as Tatopani Stays Shut
China has proposed turning Korala in Mustang into an international border crossing, but Kathmandu wants Tatopani reopened first. Nepal says its road to Tatopani is ready, but Beijing has given no indication of a reopening date. Korala is difficult to use in winter, and freight there reportedly costs almost twice as much as at Tatopani or Kerung. Rasuwa and Tatopani handled just over a fifth of Nepal's imports from China in the past year.
Read more: The Kathmandu Post (Korala proposal), Online Khabar (Tatopani negotiations), UN (trade disruption)
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India Restores Power Export Access for Four Projects
Four Nepali hydropower projects can again sell a combined 98 MW to India after New Delhi renewed approvals that had been allowed to expire during the peak export season. Nepal normally exports about 600 MW a day to India, but the August flood knocked out projects with 431.1 MW of capacity. The Nepal Electricity Authority wants Lower Modi to replace the damaged Devighat plant in bilateral sales; India has not approved the change. Damage at Trishuli and Chilime has also brought a stop to Nepal's power exports to Bangladesh.
Read more: The Kathmandu Post (renewed export approvals)
Stalled Aviation Bills Derail January EU Safety Goal
Parliament was prorogued hours after two bills arrived in the lower house to split Nepal's aviation regulator from its airport operator. Neither passed, and lawmakers aren’t going to be back in session until winter. The delay will make the government's goal of leaving the EU air safety list by mid-January 2027 effectively unreachable. Nepal plans to try and get an international safety audit in May, but the necessary laws need to be put in place six months in advance of an audit.
Read more: Reuters (regulator conflict), The Kathmandu Post (legislative and audit timetable)
Himalaya Airlines Owes KTM $4.1 Million
Himalaya Airlines owes Tribhuvan International Airport Rs 629 million ($4.1 million), including Rs 440 million ($2.9 million) in passenger service fees that it’s already collected from passengers. The Nepal-Tibet joint venture says accumulated losses are Rs 15 billion ($99 million). Nepal's aviation regulator can begin suspension proceedings if it decides that the unpaid balance is “doubtful” debt.
Read more: The Kathmandu Post
$50 Million to Drain Four Glacial Lakes
Nepal plans to lower four dangerous glacial lakes through a $50 million project backed by the Green Climate Fund, the UN Development Program and the government. Thulagi, Lower Barun, Lumding Tsho and Hongu II sit between 4,050 and 5,483 meters above sea level. Engineers will design gated outlets and canals to release water gradually into nearby rivers. Studies begin this fiscal year, and the project could take six years.
Read more: Reuters (project design and elevations), Sky (climate financing context)
Civil Service Bill Creates Abrupt Retirement Cutoff
Nepal's Federal Civil Service Bill would raise the standard retirement age from 58 to 60, but a one-time transition rule would immediately retire employees who are at least 55 or have already finished 30 years of service. The Public Service Commission squawked, but the government kept the provision in place and then added pension protection for workers forced out before the age of 58. Parliament won’t have time to debate the bill before its winter session, so we’ll see what comes of it then.
Read more: The Kathmandu Post
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