News Digest - May 16, 2026

Politics & Governance

Nepal has restructured its federal Cabinet, reducing the number of ministries from 22 to 17 under revised Rules of Business Allocation. The changes include merging functions into the Ministry of Education and Sports and creating a new Ministry of Gender Equality and Social Development, while sanitation functions are set to move into the Ministry of Health. Federal government restructures Cabinet, reduces Ministries to 17

Former Home Minister Sudhan Gurung is facing a new probe after concerns were raised over his links to businessman Deepak Bhatt. A committee led by former Supreme Court Justice Achyut Prasad Bhandari is tasked with examining the issues and submitting a report within 15 days. Sudhan Gurung to form committee to investigate Gurung

Courts & Accountability

The Supreme Court ordered Nepal Investment Mega Bank CEO Jyoti Pandey’s release on bail pending investigation, issuing conditions over movement. Judges Saranga Subedi and Shantisinh Thapa directed that he can leave the country only with court permission, following his arrest by the Central Investigation Bureau over alleged criminal breach of trust linked to Smart Telecom assets. Supreme Court orders CEO Jyoti Pandey released on bail Investment Mega Bank CEO Pandey arrested

Separately, the Public Accounts Committee has requested property details of government officials to support its examination process. The PIC said the step is intended to strengthen transparency and accountability in public service. PIC seeks property details of officials for examination

Economy & Business

Nepal’s total outstanding debt reached NPR 755 billion, increasing by NPR 88.9 billion within a year, according to the annual report submitted to President Ramchandra Paudel by the Office of the Auditor General. The audit covered NPR 94.84 trillion across federal, provincial, and local governments, and cited unaccounted amounts alongside disruptions in audits of 179 offices. Bureau report shows arrears reach NPR 755 billion

In Parliament, independent MP Mahavir Pun renewed a call to allocate one percent of capital expenditure to research and development. He also linked better education outcomes to increasing teacher positions for community schools. Call to allocate 1% of capital expenditure for R&D

Society & Community

A total of 69 operators of educational consultancy centers have been arrested on fraud charges amid an ongoing investigation into misleading practices in the education sector. Authorities said the arrests target deceptive operations that violate rules governing educational consulting services. 69 educational counseling center operators arrested on charges of fraud

In cultural news, Newars in Tamghas are working to revive the traditional Dhime Baja. The community initiative focuses on preserving heritage and promoting local traditions through performances and engagement. Tamghas Newars reviving Dhime Baja

Date: May 16, 2026 (AD) | B.S.: Jestha 02, 2083

Top News

1. नेपाल इन्भेस्टमेन्ट मेगा बैंकका सीईओ पाण्डेलाई हाजिरी जमानीमा छाड्न सर्वोच्चको आदेश (newsofnepal.com)

The Supreme Court has ordered the release of Jyoti Pandey, CEO of Nepal Investment Mega Bank Limited, on bail pending investigation. Judges Saranga Subedi and Shantisinh Thapa stipulated that he can only leave the country with court permission. Pandey was arrested by the CIB for alleged criminal breach of trust related to the auction of Smart Telecom's assets, prompting protests from banking and financial associations claiming political bias in his arrest.

2. ७ खर्ब ५५ अर्ब पुग्यो बेरुजु, एक वर्षमै थपियो ८८ अर्ब ९ करोड (arthasarokar.com)

Nepal's total outstanding debt has reached NPR 755 billion, with an increase of NPR 88.9 billion over the past year, according to the annual report submitted to President Ramchandra Paudel by the Office of the Auditor General. The audit covered NPR 94.84 trillion across federal, provincial, and local governments, revealing significant unaccounted amounts due to disruptions in audits of 179 offices. The Ministry of Finance holds the largest share of the outstanding debt at 70.37%, followed by the Ministry of Physical Infrastructure and Transport, and the Ministry of Land Management, Cooperatives, and Poverty Alleviation.

3. सुधन गुरुङमाथि छानबिन गर्न समिति गठन, बन्लान् त फेरि गृहमन्त्री ? (arthasarokar.com)

A committee has been formed to investigate former Home Minister Sudhan Gurung following raised concerns. The committee, chaired by former Supreme Court Justice Achyut Prasad Bhandari and including members Shobhakant Paudel and Achyut Mani Neupane, is tasked with studying the issues related to Gurung and submitting a report to the government within 15 days. Gurung resigned from his position amid allegations of connections with controversial businessman Deepak Bhatt.

4. पुँजीगत खर्चको एक प्रतिशत ‘अनुसन्धान र विकास’मा छुट्याउन पुनको आग्रह (arthasarokar.com)

Independent MP Mahavir Pun urged the government to allocate one percent of capital expenditure for research and development during a meeting of the House of Representatives. He welcomed the establishment of the Ministry of Science, Technology, and Innovation and emphasized the need for adequate budget allocation, citing that developed countries spend up to five percent of their GDP on research and development. Pun also called for an increase in teacher positions to enhance the quality of community schools.

5. ठगी गरेकाे आरोपमा ६९ जना शैक्षिक परामर्श केन्द्रका सञ्चालक पक्राउ (www.onlinekhabar.com)

Sixty-nine operators of educational consultancy centers have been arrested on charges of fraud in Nepal. The arrests were made as part of an ongoing investigation into deceptive practices within the education sector.

6. Federal government restructures Cabinet, reduces Ministries to 17 (english.onlinekhabar.com)

The federal government has restructured its Cabinet, reducing the number of ministries from 22 to 17 through the revised Rules of Business Allocation. Key changes include the dissolution of the Ministry of Youth and Sports, with its functions merged into the newly named Ministry of Education and Sports, and the formation of a new Ministry of Gender Equality and Social Development. Additionally, sanitation functions will be integrated into the Ministry of Health, while water supply and urban development sectors will merge into the renamed Ministry of Integrated Physical Infrastructure.

7. Arrest of NIMB CEO sparks fear in banking sector (theannapurnaexpress.com)

The arrest of Nepal Investment Mega Bank CEO Jyoti Prakash Pandey by the Central Investigation Bureau has instilled fear among bankers and financial institution directors, according to the Confederation of Banks and Financial Institutions Nepal. Concerns have been raised about the impact on credit investment and market management, as the bank is accused of illegally auctioning assets pledged by Smart Telecom, while the bank maintains it acted within its legal rights.

8. Tamghas Newars reviving Dhime Baja (risingnepaldaily.com)

Newars in Tamghas are working to revive the traditional Dhime Baja, a cultural musical ensemble. This initiative aims to preserve their heritage and promote local traditions through performances and community engagement.

9. PIC seeks property details of officials for examination (risingnepaldaily.com)

The Public Accounts Committee (PIC) has requested property details of government officials for examination. This move aims to enhance transparency and accountability within public service.

10. Investment Mega Bank CEO Pandey arrested (english.onlinekhabar.com)

Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank, was arrested by the Central Investigation Bureau (CIB) on May 12 in Sindhuli district. He faces charges of fraud and criminal breach of trust related to the illegal auction of Smart Cell’s assets, with an investigation now underway against him.

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