Finance and Economy

A key piece of Nepal’s long-anticipated trade infrastructure has stalled dramatically after Beijing informed Kathmandu that it is halting construction of the Rasuwa dry port, a China-funded inland container depot near the Nepal-China border.

Many households will meet minimum food needs only by depleting essential livelihood assets – a sharp deterioration compared with the previous year.

According to the police, 1,663 scam cases were reported, with losses exceeding MVR 22.7 million, of which MVR 8.5 million has now been retrieved. Before the centre’s formation, authorities were only able to recover about two per cent of stolen funds.

The decision to halt salary payments has drawn concern from civil society groups and international observers, who warn that continued economic contraction could fuel social unrest or increased migration out of the country.

Experts caution that timely implementation, effective supervision and coordination among agencies will be key to ensuring project success. Nepal’s road sector has historically faced challenges related to delays, cost overruns and difficult terrain.

International development partners, including the World Bank, have also entered the picture with initiatives designed to boost jobs and trade, although such efforts are longer-term in nature and their impact on immediate job creation is still unfolding.

Experts argue that meeting Nepal’s 2045 net-zero target and Sustainable Development Goal 7 – affordable and clean energy for all – will require a fundamental rethink of biogas policy.

The minister said that the government is also pursuing new free trade agreements and working to improve the utilisation of existing FTAs.