Ministry of Physical Infrastructure and Transport

Construction entrepreneurs, led by Federation of Contractors' Associations of Nepal Chairman Nicholas Pandey, have submitted memorandums to government ministries highlighting a severe crisis in the sector due to soaring material and fuel costs. Pandey claims project chiefs and engineers are issuing threats to confiscate bank guarantees and blacklist contractors, creating an environment of insecurity.

Nepal's total arrears have reached Rs 755 billion, with an additional Rs 88.09 billion added in the last fiscal year, according to the latest report from the Office of the Auditor General. The report highlights systemic dysfunction, particularly within the Ministry of Finance, which accounts for over 70 percent of the arrears, indicating a failure in fiscal discipline and management across government levels.