Fri, Nov 13, 2026 • 1:00 PM Nepal Time • Kathmandu, Nepal
Nepal's official documents — original, verified, in one place

Nepal Cabinet Approves $5 Million ADB Flood Relief Grant, New Capital Gains Tax Rates and Major Cybersecurity Reforms

Share

Summary:

Nepal's Council of Ministers approved USD 5 million in emergency flood assistance, housing support for displaced families, revised capital gains tax rates, digital governance reforms and major legislative measures during meetings held from Bhadra 18 to 31, 2083 BS.

The Government of Nepal’s Council of Ministers adopted wide-ranging decisions during meetings held on Bhadra 18, 25 and 31, 2083 BS, covering disaster recovery, economic policy, public administration and national development. According to the seven-page Cabinet decision compilation, the government approved USD 5 million in grant assistance from the Asian Development Bank (ADB) to support emergency rescue and relief operations following the devastating Bhotekoshi River flood. It also approved an Integrated Business Recovery Plan providing relief, tax and fee concessions, and other facilities to help flood-affected individuals, industries and businesses resume operations. For families whose homes were completely destroyed and rendered uninhabitable across 15 local levels in Rasuwa, Nuwakot, Dhading, Tanahun and Gorkha, the Cabinet approved temporary accommodation assistance of Rs 15,000 per month for families with up to four members, plus Rs 2,000 for each additional member, for a maximum of six months, where eligible families arrange accommodation independently rather than stay in holding centres. The government further approved Rs 10 lakh in relief for each civil servant killed while undertaking disaster-related duties or rescue operations, alongside risk allowances, food expenses and free medical treatment for injured rescue personnel. It also declared Bhadra 23 a national day of mourning for the flood victims, with national flags lowered to half-mast at government offices and Nepali diplomatic missions.

In economic and fiscal policy, the Cabinet approved revised advance tax rates on gains from the disposal of securities interests held by resident individuals, setting the rate at 3.75 percent for holdings exceeding 365 days and 5 percent for holdings held for 365 days or less. The government also authorized the import of 25,000 metric tonnes of sugar through Salt Trading Corporation and Food Management and Trading Company at a concessional customs duty of one percent. Other financial decisions included initiating negotiations with Hong Kong for a double-taxation avoidance and fiscal evasion prevention agreement, approving additional food-expense benefits for designated government personnel and authorizing arrangements for the eventual transfer of electricity transmission lines and substations constructed under US-supported projects to the Nepal Electricity Authority, with the assessed costs reflected as additional government equity. The Cabinet also approved a nationwide public holiday on Bhadra 23 to commemorate Gen-Z Martyrs’ Day, allocated Rs 5 lakh to the Gen-Z Martyrs’ Families Welfare Society for commemorative activities, and endorsed the preparation of legislation addressing predatory moneylending practices. In administrative and social development decisions, the government approved the official listing of 17,438 poor households across 27 local levels in Kathmandu, Bhaktapur, Lalitpur, Saptari and Dang, alongside new staffing arrangements in the health and public administration sectors.

A major highlight of the Bhadra 31 Cabinet meeting was the government’s approval of in-principle authorization to draft separate Information Technology and Cybersecurity Bills, reflecting its intention to modernize Nepal’s digital regulatory framework. The Cabinet also approved the Government Decision-Making Process (Simplification and Digitalization) Regulations, 2083 BS, aimed at improving administrative efficiency through digital systems. Other legislative decisions included authorizing proposed amendments to laws governing renewable energy, energy efficiency, free legal assistance, maternal and reproductive health, health workers’ protection and substitutes for breast milk. The government also approved the Cooperative (First Amendment) Regulations, 2083, the Casino Regulations, 2083, and procedures for operating a Revolving Relief Fund. In institutional governance, the Cabinet appointed Dr. Hari Prasad Lamsal as Chairperson of the Teachers Service Commission, alongside Ramsharan Sapkota and Bishnu Ghimire Rimal as members. It also approved the formation of an ad hoc committee of the Nepal Red Cross Society under Bishal Kumar Bhandari, with responsibility for facilitating the formation of a new executive committee in accordance with the organization’s statute.

The Cabinet further introduced significant decisions concerning diplomatic restructuring, public accountability and government personnel management. It approved the closure of Nepali diplomatic missions in Copenhagen, Denmark, and Pretoria, South Africa, the Nepali Embassy’s field office in Visakhapatnam, India, and the Nepali Consulate General in San Francisco, United States. The government also authorized legal arrangements for pursuing insurance and compensation claims involving Nepali citizens killed or injured in Saudi Arabia through a Saudi legal representative. Additional decisions included accepting the Nepal–Rwanda cooperation agreement covering economic, technical, scientific and cultural sectors, approving the appointment and transfer of senior officials, and authorizing the preparation of legislation concerning the National Vigilance Centre and National Defence University. The Cabinet also approved the deployment of health-sector staff, judicial and administrative promotions, and changes to the government’s organizational structure. The compilation records Cabinet approvals and administrative authorizations rather than confirming the disbursement of all relief funds, completion of planned reforms or enactment of proposed legislation.

Subscribe to Official Government Alerts

Get new government notices, circulars, and policy updates delivered to your inbox as soon as they are published.
Subscription Form