Nepal’s major “national pride” infrastructure initiatives, designed to boost economic development and create jobs, have shown weak budget utilization in fiscal year 2025/26. Of the Rs 67.08 billion allocated to 23 ongoing projects, only 15.49% had been spent by mid-January 2026. Projects already completed include the Upper Tamakoshi Hydropower Project, Gautam Buddha International Airport, and the first phase of the Melamchi Drinking Water Project. Progress on various highways and expressways ranges between 42% and 82%. The Ministry of Finance attributes delays to land acquisition challenges, forest clearance procedures, coordination gaps among agencies, and local-level obstacles. Authorities recommend finalizing detailed project reports (DPRs) and resolving land-related issues to speed up implementation and meet long-term economic and strategic objectives.
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