Fiscal Nepal

European diplomats, led by EU Ambassador Véronique Lorenzo, have expressed strong confidence in Prime Minister Balendra Shah's reform agenda and commitment to Nepal's development. Following a meeting in Kathmandu, the delegation noted Shah's clear vision and structured roadmap for implementing impactful transformations in the country, signaling a new phase of cooperation.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Anjan Shrestha has urged the government to prioritize a production-led economic model and tax stability in the upcoming fiscal year 2083/84 budget. Shrestha emphasized that Nepal must shift from remittance and import dependency towards manufacturing, exports, and entrepreneurship to ensure sustainable prosperity, especially with the nation's impending graduation from Least Developed Country (LDC) status.

Rastriya Swatantra Party lawmaker Yagyamani Neupane has called for the public disclosure of judges' assets to enhance judicial transparency and accountability. He also urged the government to enact necessary laws for the operationalization of local courts to reduce the burden on the Supreme Court.

Non-banking assets (NBA) within Nepal's banking sector have surpassed Rs 46.10 billion, indicating a significant increase in loan defaults and the acquisition of collateral by banks. This rise of Rs 7.69 billion from the previous fiscal year highlights growing stress in loan recovery and economic weakness, prompting the central bank, Nepal Rastra Bank, to plan an Asset Management Company to handle distressed assets.

Prime Minister Balen Shah held a joint meeting with ambassadors from 22 European Union member states in Kathmandu. The delegation, including ambassadors based in Kathmandu and New Delhi, aimed to congratulate the new government, reaffirm support for Nepal's development priorities, and explore new avenues for cooperation in areas such as trade, investment, and climate action. Discussions also touched upon Nepal's human rights situation, political stability, and economic development.

Prime Minister Balendra Shah met with non-resident ambassadors and heads of missions from European Union member nations to discuss Nepal's current priorities, strengthen bilateral relations, and explore areas of cooperation. The meeting, held at the Office of the Prime Minister and Council of Ministers, was described by press advisor Deepa Dahal as an opportunity to inform diplomats about Nepal's objectives.

Kathmandu is set to be a hub for literary events in May and June 2026, with the Himalayan Literature Festival & Writers’ Workshop (HLF-WWK) 2026 and the Kathmandu Kalinga Literary Festival scheduled to take place. The HLF-WWK, dedicated to Guru Prasad Mainali, will run from May 29 to June 5, focusing on themes of healing, consciousness, and cultural dialogue, and will feature international writers. The Kathmandu Kalinga Literary Festival will be held on June 6 and 7, aiming to foster multidimensional exchange among writers and intellectuals from South Asia.

The government has appointed Joint Secretary Mukesh Dangol as the new Director General of the Civil Aviation Authority of Nepal (CAAN). The decision was made during a Cabinet meeting on Monday, as announced by government spokesperson and Minister for Education, Sasmit Pokharel. Dangol, who has prior experience as an acting Director General, was selected from 21 applicants.

Surkrishna Vaidya has been elected as the Senior Vice President and Manish Lal Pradhan as the Treasurer of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The elections concluded on Friday at the FNCCI Central Office in Teku, Kathmandu, finalizing key leadership positions within the organization.

Nepal Rastra Bank has published the foreign exchange rates for Monday, May 25. The central bank set the buying rate for one US dollar at 152 rupees 81 paisa and the selling rate at 153 rupees 41 paisa, with rates also provided for Euros, Pounds Sterling, and other major currencies.