DILIP PAUDEL

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

The assessment comes in the State of the Economy Report unveiled on Monday by Finance Minister Swarnim Wagle, who outlined a range of structural and policy-driven challenges weighing on the economy.

The anti-graft body lodged the case at the Special Court on Wednesday, concluding that irregularities occurred in the under-construction cold storage project in Rupandehi. 

The current size of the economy stands at about 61.07 trillion rupees, around 46 billion dollars. That means the target requires almost doubling the economy in five years. Finance Minister Swarnim Wagle, an economist, now holds the responsibility. Whether the goal becomes reality will depend on gove...

The 1,200 MW project has an estimated base cost of $2.77 billion. In line with its financing model of 70 percent debt and 30 percent equity, preparations are underway to float the bonds, according to project officials.