Sat, Nov 14, 2026 • 4:27 PM Nepal Time • Kathmandu, Nepal
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Nepal Cabinet Approves $185 Million in Development Financing, Raises Paddy Support Prices and Advances Major Governance Reforms

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Summary:

Nepal's Council of Ministers has endorsed major financing arrangements for digital transformation and Greater Lumbini development, announced new paddy support prices, approved administrative appointments and introduced decisions covering infrastructure, public administration and institutional reform.

The Government of Nepal’s Council of Ministers has made a series of significant decisions concerning economic development, foreign assistance, infrastructure investment and administrative restructuring, according to a six-page compilation of Cabinet decisions from meetings held on Chaitra 13 and 16, 2082 BS, and Chaitra 22 and 24, 2082 BS. Among the major financial decisions, the Cabinet approved concessional borrowing of USD 80 million for the Digital Nepal Transformation Project, comprising USD 40 million from the Asian Development Bank (ADB) and USD 50 million from the World Bank. It also approved acceptance of USD 85 million in concessional financing from the World Bank for the Greater Lumbini Area Development Project, bringing the combined value of these financing decisions to USD 185 million. Additionally, the government agreed to accept USD 15 million in grant assistance from the World Bank for a separate digital-sector initiative. The decisions represent important steps toward strengthening digital government services, improving infrastructure and supporting regional economic development.

In the agricultural sector, the Cabinet established minimum support prices for paddy for fiscal year 2083/84, setting the price of coarse paddy at Rs 3,145 per quintal. For fiscal year 2082/83, the government approved an additional Rs 1,200 per quintal for farmers selling coarse paddy that had received a minimum support price of Rs 2,856.49 per quintal, provided the sales occurred within the specified period. The Cabinet also approved measures concerning the import of petroleum products, including a 50 percent concession on applicable customs duties and infrastructure development taxes for petrol, diesel and kerosene. Other economic decisions included approval of provincial and local government borrowing limits, financial equalization grant ceilings and amendments to provisions of the Financial Act, 2082. These measures address agricultural price support, public financing and fiscal administration, although the compilation does not quantify the total expenditure or revenue impact of all decisions.

The Cabinet also approved several institutional restructuring, infrastructure and public administration measures. It decided to transfer the Nepal Engineering Research Centre from the Ministry of Energy, Water Resources and Irrigation to the Ministry of Physical Infrastructure and Transport, while directing the relocation of its office within Lalitpur. The government approved land-related arrangements for the Nagdhunga Tunnel Road Project and Prasad Marga Road Project, alongside forest land-use decisions for the Kathmandu–Terai/Madhesh Fast Track Project. On administrative governance, the Cabinet approved organizational and management reviews of government ministries, secretariats, commissions and subordinate agencies, while making appointments to public institutions, including the National Planning Commission and Nepal Rastra Bank. It also approved the implementation of a five-day government office schedule with Saturday and Sunday as weekly holidays, alongside revised office hours and changes to the academic session calendar.

In broader governance and policy decisions, the Cabinet endorsed amendments to the Prime Minister’s Advisory and Secretariat Management Procedures, 2074 BS, accepted the government’s 100-point governance reform action plan, and directed concerned agencies to implement recommendations arising from investigations into incidents during protests. The decisions also addressed parliamentary sessions, diplomatic representation, civil service administration, military participation in international programmes and institutional appointments. The compilation includes measures relating to the Nepal Police, Armed Police Force, Nepal Army, National Reconstruction Authority and other public institutions, reflecting a wide-ranging administrative agenda. The document records Cabinet approvals, financing decisions and administrative authorizations rather than confirming that all development loans have been disbursed, infrastructure projects completed or policy measures fully implemented. It provides an official overview of government decisions affecting Nepal’s economic, administrative and infrastructure sectors.

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