Game-Changer: Nepal Begins Cross-Border Energy Trade, Opens Door to Global Digital Boom

Nepal has made significant strides in regional energy trade, digital innovation, and foreign investment over the past weeks, signaling a transformative phase in the country’s economic and technological landscape. From expanding hydropower exports to launching policies for digital nomads and attracting international media players to the OTT space, Nepal is emerging as a key player in South Asia’s development frontier.

🔌 Energy Export: Nepal Enters Billion-Rupee Trade with Bangladesh and India

Nepal has begun exporting 40 megawatts (MW) of electricity to Bangladesh via India’s power grid, marking a historic expansion of its cross-border energy diplomacy. According to Minister for Energy, Water Resources, and Irrigation Deepak Khadka, the export will generate an estimated Rs. 1.25 billion over five months, translating to $9.4 million USD in revenue for the Nepal Electricity Authority (NEA).

This new phase of electricity trade started at midnight on June 15 (Asar 1) and will continue until November 15, 2025. The supply is routed from Dhalkevar Substation through Muzaffarpur and Behrampur in India to Bheramara in Bangladesh. The energy originates from the Trishuli (18.6 MW) and Chilime (21.4 MW) hydropower projects and is priced at 6.4 US cents per unit.

Nepal had previously conducted a short-duration test export in November 2023, but this marks the first full-scale, long-term agreement. The deal was enabled by a tripartite power trade agreement signed between NEA, Bangladesh Power Development Board, and India’s NTPC Vidyut Vyapar Nigam Limited in October 2024.

Alongside Bangladesh, India’s power import from Nepal has also increased. Since June 13 (Jestha 31), Nepal has been supplying 200 MW of power to Haryana, up from 185 MW. Additionally, starting June 15, Nepal began exporting 80 MW to Bihar, further solidifying its role as a regional clean energy hub.

The government aims to generate 28,500 MW of electricity by 2035, with the goal of exporting 10,000 MW to India and 5,000 MW to Bangladesh. This positions energy not only as a major revenue source but also as a strategic diplomatic tool.

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💸 Macroeconomic Outlook and Budget Discussions

The Nepal Stock Exchange (NEPSE) showed a modest rise, with the index climbing 0.47 points to reach 2,655.85, and a trading volume exceeding Rs. 11.44 billion. The hydropower sector saw the strongest investor confidence, with a 0.96% growth. Sanima Mai Hydropower Ltd. led the market with trades worth Rs. 890 million.

Meanwhile, budget discussions resumed in Parliament after a 17-day blockade by the opposition. The 2082/83 national budget has sparked debate over development expenditures. The government has spent only Rs. 143 billion, or 40.7% of its capital expenditure target, in the first 11 months of the fiscal year. To meet its annual goal, it must spend Rs. 208.96 billion in the month of Asar alone, requiring a daily disbursement of nearly Rs. 6.96 billion.

Revenue collection crossed the Rs. 1 trillion mark, but remains significantly below the Rs. 1.419 trillion target. The Nepal Rastra Bank (NRB) has announced plans to withdraw Rs. 40 billion in liquidity to stabilize the financial market. Governor Dr. Bishwanath Paudel highlighted concerns about credit concentration among limited individuals and entities.

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📈 Provincial Budgets: Mixed Priorities Across Regions

Nepal’s provinces have also unveiled their budgets:

• Koshi Province proposed Rs. 35.87 billion

• Gandaki introduced a Rs. 32 billion budget

• Madhesh allocated Rs. 46.58 billion, reducing funds for agriculture and irrigation

• Lumbini announced Rs. 38.91 billion

• Sudurpaschim set aside Rs. 33.47 billion

Interestingly, Madhesh Province, governed by Janamat Party—born from a farmers’ movement—has reduced the agriculture budget, drawing criticism for its contradictory policy stance.

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🌐 Digital Leap: Nomad Visas and Cybersecurity Reforms

A landmark proposal from the High-Level Economic Policy Advisory Commission recommended introducing Digital Nomad Visas in Nepal. The move, supported in the government’s budget statement, aims to attract remote international workers and Nepali expatriates with digital skills. Requirements may include proof of monthly income over $2,500 or $50,000 in annual assets.

To support the policy, Nepal needs to revise its Labor Law, expand co-working infrastructure, and ensure high-speed internet access. This initiative aligns Nepal with countries like Sri Lanka, India, Thailand, Japan, and Vietnam, which already offer similar visas.

In parallel, the government tabled a new Cyber Security and IT Bill in Parliament. It mandates government bodies to use the official .gov.np domain, affecting entities like the Nepal Rastra Bank and NEA currently using .org.np.

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📺 Global OTT Players Eye Nepal’s Entertainment Market

Nepal’s growing digital footprint is also drawing international media interest. Siddhartha Roy, CEO of Hungama Digital Media Entertainment—one of India’s top digital content providers—visited Kathmandu for meetings with local content creators.

Hungama plans to:

• Collaborate with Nepali artists and production houses

• Launch localized Indian content with Nepali subtitles

• Focus on short-form (15–20 min) mobile-first series

• Offer weekly and monthly subscription packages

These efforts aim to monetize the OTT market among Nepalis at home and abroad, especially the diaspora, with a strategy centered on regional authenticity and linguistic accessibility.

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⚖️ Politics, Protests, and Press Freedom

Parliamentary proceedings remain rocky. Opposition parties—Rastriya Swatantra Party and Rastriya Prajatantra Party—are demanding the resignation of Home Minister Ramesh Lekhak over a visa scandal.

Meanwhile, the National Human Rights Commission (NHRC) issued a strong statement urging protection of press freedom, following a controversial cybercrime arrest warrant issued against veteran journalist Dill Bhushan Pathak. The warrant stemmed from a televised investigative report involving Hilton Hotel and Jayveer Deuba, son of former PM Sher Bahadur Deuba.

Also, 93 individuals, including former Prime Minister Madhav Kumar Nepal, are facing corruption charges, marking one of the largest legal crackdowns in recent memory.

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☔ Monsoon, Education Disruptions, and Fuel Hikes

With the monsoon now active, paddy planting has begun across hilly regions. However, extreme heat forced Birgunj Metropolitan City to close schools for six days.

The Nepal Oil Corporation has increased prices of petrol and diesel, further burdening consumers.

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⚽ Sports Highlights

• Nepal’s U-20 Women’s National Football Team has shortlisted 30 players for the upcoming SAFF Championship in Bangladesh (July 11–22).

• Despite being declared the national sport in 2016, volleyball still lacks permanent infrastructure. Yet, recent NVL tournaments in Pokhara have highlighted its growing popularity.

• South Africa’s cricket team won the ICC World Test Championship, with captain Temba Bavuma going viral for lifting the trophy with his son.

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🎭 Culture & Inspiration

Social media is abuzz with the story of Monalisa, who rose to fame during Mahakumbh 2025 for her striking eyes and is now debuting as an actress in the film “Sadgi”.

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✅ Conclusion: Nepal’s Moment of Momentum

From billion-rupee energy exports to digital policy breakthroughs, Nepal is embracing innovation and ambition amid ongoing political challenges. As international players show confidence in its markets and ideas, the nation stands at a pivotal point—ready to transform into a modern, digitally integrated economy.