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The government has announced a major policy shift allowing the private sector to engage in international electricity trading.

Finance Minister Dr Swarnim Wagle made the announcement while presenting the national budget for FY 2026/27, stating that private participation will now be enabled in cross-border power trade.

The reform is expected to expand Nepal’s energy market access and boost investment in the hydropower sector by opening new avenues for export-oriented electricity trade.

Officials say the move is part of broader efforts to liberalize the energy sector and strengthen Nepal’s position in regional power markets.