Welcome to The ApEx Daily, your daily briefing on Nepal's politics, governance, and public affairs. Designed for an international audience, this newsletter explains the developments shaping one of South Asia's youngest federal democracies.
Prime Minister Balendra Shah has stepped in to address growing concerns over Nepal's weakening capital market. When the RSP-led government took office, the NEPSE index was around 2,950 points with daily trading turnover of approximately Rs 13 billion. Since then, the benchmark index has slipped below 2,600 points, while daily turnover has nearly halved.
During a meeting with market stakeholders, the Prime Minister assured participants that the government would take necessary measures to address the downturn. Over recent weeks, Shah has also held consultations with representatives from various private-sector groups to hear their concerns directly.
However, Finance Minister Swarnim Wagle's absence from these high-level consultations has fueled political speculation. Several lawmakers with business backgrounds have reportedly been facilitating the meetings, while rumors continue to circulate that the Prime Minister is considering replacing Wagle over dissatisfaction with his performance as finance minister. There has been no official confirmation of any cabinet reshuffle.
The internal power struggle within the Nepali Congress (NC) remains unresolved. Vice President Bishwa Prakash Sharma said negotiations are underway to unify rival factions ahead of the party's upcoming general convention.
According to Sharma, Party President Thapa has been holding consultations with senior leaders representing different factions in an effort to build consensus and ensure the convention proceeds in a united manner.
The government has decided to suspend recruitment across government offices for one year as part of an ongoing administrative restructuring. Following the reduction of ministries from 22 to 18 and the merger of several government agencies, authorities say the immediate priority is to reorganize and redeploy existing permanent civil servants before opening new vacancies. The recruitment freeze is intended to facilitate workforce management during the transition.
Recent monsoon rainfall has significantly improved Nepal's agricultural outlook. Government authorities report that more than 75 percent of paddy transplantation has been completed nationwide.
The improved planting season is expected to contribute to higher paddy production this year, providing positive momentum for the agricultural sector and rural economy.
The government has published a notice in the Nepal Gazette allowing members of Parliament to appoint personal assistants. The decision has generated criticism from some quarters, as it appears inconsistent with the RSP government's commitment to fiscal austerity and reducing public expenditure.
Supporters, however, argue that dedicated parliamentary assistants could strengthen legislative performance by conducting policy research, preparing briefing materials, and supporting lawmakers in drafting speeches and parliamentary interventions—tasks for which many MPs have increasingly relied on AI tools.
Nepal and the Russian Federation marked the 70th anniversary of diplomatic relations on 20 July, with Foreign Minister Shisir Khanal and Russian Foreign Minister Sergey Lavrov exchanging congratulatory messages.
Minister Khanal conveyed Nepal's commitment to further expanding bilateral cooperation and exploring new areas of partnership, while Minister Lavrov reaffirmed Russia's willingness to strengthen the longstanding relationship for the mutual benefit of both countries. Diplomatic relations between Nepal and Russia were formally established on 20 July 1956.
Foreign Minister Shisir Khanal also held a joint meeting with the United Nations Resident Coordinator and heads of UN agencies based in Kathmandu, including UNDP, WFP, UNESCO, UNODC, UNRCPD, UNICEF, UNFPA, and WHO.
During the meeting, Khanal reaffirmed Nepal's strong commitment to the United Nations and the multilateral system. He emphasized the government's priorities of improving governance, accelerating economic transformation, creating employment opportunities, and achieving inclusive and resilient development. Representatives of the UN agencies reiterated their continued support for Nepal's national development priorities and pledged to further strengthen cooperation with the government.
Key Takeaways
· Prime Minister Balendra Shah has personally engaged with capital market stakeholders as concerns over the economy and stock market deepen.
· Speculation continues over Finance Minister Swarnim Wagle's position amid his absence from key economic consultations.
· The government has frozen civil service recruitment for one year while implementing administrative restructuring.
· Nepal's paddy transplantation has surpassed 75 percent, raising expectations for improved agricultural output.
· A new provision allowing MPs to appoint personal assistants has sparked debate over the government's austerity agenda.
· Nepal and Russia celebrated 70 years of diplomatic relations with an exchange of messages between their foreign ministers.
· Foreign Minister Shisir Khanal reaffirmed Nepal's commitment to multilateral cooperation during a meeting with UN agency leaders in Kathmandu.
