This time of year last year, the phone at the headquarters of Salute Gorkha Training Centre in Pokhara was ringing off the hook. Callers wanted to know if recruitment of Nepali soldiers into the Indian Army had started.&nbsp; This year, the phone has not rung at all. The office is quiet. Many young men from the mountains who had spent more than six months in training in Pokhara to be recruited as an Indian Gorkha soldier have given up. They are now trying their luck to find jobs in the Gulf. Even so, whenever retired Butwal-based Indian Army soldier Laxman Shrestha gets calls from his village in southeastern Gulmi, the most frequently asked question is: “Dai, has the recruitment process begun?" Shrestha retired four years ago after having served for more than 17 years in the Indian Army’s Gorkha Rifles, and currently operates a business in Butwal.&nbsp; Read also: <a href="https://www.nepalitimes.com/editorial/in-the-line-of-fire">In the Line of Fire</a>, Editorial He also supports young people from his home village in the mountains who want to follow his footsteps. But with the uncertainty about India’s military reform plan called Agnipath, he is not able to give them a clear answer. The Indian Army suspended Gorkha recruitment for two years from 2020 to 2021 due to the Covid-19 pandemic. But even afterwards, there are new conditions for applicants. Introduced last July, Agnipath only allows recruits aged 17.5 to 23 years old to be hired as soldiers for four-year periods, after which they will be discharged with a lump sum of Rs1.8 million, but will not be eligible for a lifetime pension. Only 25% of trained soldiers will be offered a 15-year extension after the initial four years. Recruitment did start in Butwal and Dharan, but the selection process was halted soon after by the Sher Bahadur Deuba-led government, saying that Nepal needed further study into the scheme. Read also: <a href="https://www.nepalitimes.com/here-now/india-s-trial-by-fire-for-soldiers-from-nepal">India’s trial by fire for soldiers from Nepal</a>, Anita Shrestha  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023081205080_09f7f816a810251d13ae1d820dcedaac6ec1f8ace21fc7ea66c1b9fb7647b9f4.jpg" data-media-id="editor_2" data-image-id="2023081205080_09f7f816a810251d13ae1d820dcedaac6ec1f8ace21fc7ea66c1b9fb7647b9f4" data-rendition-name="original" width="800" height="434" loading="lazy" alt="Gorkha training NT"> <figcaption>Photos: SALUTE GORKHA TRAINING CENTER</figcaption> </figure>  The decision was a blow to young Nepalis who wanted to be selected to the Indian Army. Some 306 applicants from the mountains of central Nepal had already enrolled at Salute Gorkha Training Institute in Butwal. Most are now trying to get an overseas job, and some want to try for the British Army. There are currently 4,100 Nepali Gurkha soldiers in the British Army, and 205 were &nbsp;selected this year from about 25,000 applicants, despite a long-running dispute over pensions. The British Army also recruits Nepalis on behalf of the Singapore, Oman and Brunei security forces. “The selection for the Indian army is easier than the British Army and the Singapore police. That is why many trainees who enrol in our institute tend to try for the Indian military,” explains Lokesh Thapa, director of Salute Gorkha Training Institute who has been training aspiring recruits for 13 years. “But with the future uncertain, we cannot enrol a new batch.” Trainees pay fees up to Rs80,000 each at the institute's branches in Butwal, Kathmandu, Lalitpur, Dang, Chitwan, and Dharan, and it is among 30 other similar centres.&nbsp; “The fees they have paid has gone to waste,” says retired Indian Army Junior Commissioned Officer Kul Bahadur KC. “They have nowhere to go and no one who can answer their questions.” Read also: <a href="https://www.nepalitimes.com/here-now/tales-of-courage-and-suffering-cx95f89e">Tales of courage and suffering</a>, Nepali Times In February, India’s Foreign Secretary Vinay Mohan Kwatra paid an official visit to Nepal to discuss Agnipath among other things, but no outcome was made public. Former Indian Army Captain Chok Bahadur Gurung has made up his mind about what it means: “Agnipath has shown that India is ignoring the Nepali government.”&nbsp; Prime Minister Pushpa Kamal Dahal said he raised the Agnipath issue with Narendra Modi when the two met in New Delhi in May, but there was no joint mention of it. Even retired Indian Army major general Ashok Mehta who has served in the Gorkha Brigades is outraged. He told Nepali Times: “The existing recruitment system was overturned without notice or consultation with a strategic Himalayan neighbour with whom India claims special relations. India-Nepal relations are like between daju and bhai, but this was not very big brotherly.” A Tripartite Agreement in 1947 allowed the continued recruitment of Nepalis into the British and Indian Armies, but Nepali fighters went over to the British side even before the end of the 1814-16 war with the East India Company following which Nepal signed the Sugauli Treaty. Read also: <a href="https://www.nepalitimes.com/latest/gorkhas-on-the-frontline-between-india-and-china/">Gorkhas on the frontline between India and China</a>, Pratistha Rijal  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023081205080_e837cb3f4e428434db0bb72436e64ffd818300f24f3a44fea060e6b96429ba80.jpg" data-media-id="editor_5" data-image-id="2023081205080_e837cb3f4e428434db0bb72436e64ffd818300f24f3a44fea060e6b96429ba80" data-rendition-name="original" width="960" height="720" loading="lazy" alt="Gorkha Training NT"> </figure>  By the end of World War II, there were 10 Gurkha regiments in the British Army, and six of them were assigned to India and four to Britain after Indian independence. India has since added another Gorkha Regiment. (India refers to its Nepali soldiers as 'Gorkhas', while the British prefer ‘Gurkhas’.) Former soldier Mukta Prasad Shrestha from Gulmi served 21 years as an Indian Gorkha soldier and still sees young people in his village training to do what he did as a young man. He agrees that the Agnipath scheme puts the livelihoods of Nepali soldiers at risk. &nbsp; “Well-to-do people do not join the military, those who have the responsibility to take care of families do,” says Shrestha. “Why else would anyone want to go off and fight for somebody else's land?” Sushant Singh, who served in the Indian Army for 20 years and is now the consulting editor of Caravan magazine in New Delhi, said in a recent podcast that a scheme like Agnipath erases the self-identity of retired soldiers. Read also: <a href="https://www.nepalitimes.com/here-now/a-forgotten-gurkha-rebellion-e8z403ab">A forgotten Gurkha rebellion</a>, Ram Kandangwa  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023081205080_87bf1d4bb3d8a5256ef93bb4658a150fc6b82ae9d72a76e31180bc382da98249.jpg" data-media-id="editor_7" data-image-id="2023081205080_87bf1d4bb3d8a5256ef93bb4658a150fc6b82ae9d72a76e31180bc382da98249" data-rendition-name="original" width="960" height="645" loading="lazy" alt="Gorkha Training NT"> </figure>  “Until now, those who joined the army served for 17 years, and left with experience and honour afforded by the training and the pension received,” Singh recently said on a podcast. “That honour makes all the difference between having been a soldier or a hired killer.” Nepal’s former ambassador to India Deep Kumar Upadhyay says India employed “crude diplomacy” by failing to discuss Agnipath with Nepal before its implementation as it involves soldiers from Nepal.&nbsp; “India should not have taken a unilateral decision on a recruitment process that does not justify terms set in the Tripartite Agreement,” says Upadhyay. “India must reach out to Nepal’s political leadership as well as ex-servicemen networks.” Maj Gen Ashok Mehta echoes this sentiment: “It is clear that India’s handling was presumptuous, and the government has opted to make Nepal-Domiciled Gorkha (NDG) recruitment not as a foreign policy imperative but a domestic employment issue. Now, India and Nepal must begin talks on Agnipath urgently to save the Indian Gorkha Brigade and the vital Gorkha connection with Nepal.” Read also: <a href="https://www.nepalitimes.com/opinion/so-far-so-good/collateral-benefits">Collateral benefits</a>, Lisa Choegyal The seven-point Tripartite Agreement ensures the rights of Nepali soldiers, including their salaries, pensions, financial compensation, as well as facilities for families. The fourth point of the agreement in particular stipulates that Gorkha soldiers should be allowed to serve for sufficient time to qualify for pension, a point former soldiers have said Aginapath goes against. Retired Indian Army Captain Raj Bahadur Thapa says that the 1947 agreement is outdated and must be replaced by a new agreement with conditions that are in the best interests of Nepal’s soldiers in foreign armies. “Otherwise, why send your young men to kill and die for a foreign land?” questions Thapa. A former serviceman who was with the Indian Army for over 20 years says Nepalis will not be included in the 25% who will be permanently retained by the military. “Nepali soldiers are always on a razor edge in the Indian military, they remember even our smallest mistakes,” he says. “We will be the first ones to be sent back.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023081205084_07f6c6ad6115234ae2873eec9e2ddf287a1209788d311e3529597de939e2c395.jpg" data-media-id="editor_9" data-image-id="2023081205084_07f6c6ad6115234ae2873eec9e2ddf287a1209788d311e3529597de939e2c395" data-rendition-name="original" width="956" height="538" loading="lazy" alt="Gorkha training NT"> </figure>  Nepali soldiers have other concerns about what young Nepali men with military training can do when they return to Nepal in four years when the money they saved runs out eventually. Recruits within India seem to have similar qualms, and there have been protests there against the scheme after it was announced. Recruits from the first batch of ‘Agniveer’ had reportedly dropped out of training, and the Indian Army is said to be considering raising the permanent retention quota from 25% to 50%, and the length of engagement from 4 years to 7 years.&nbsp; Read also: <a href="https://www.nepalitimes.com/banner/a-military-migrant-economy">A military-migrant economy</a>, Amanda Chisholm The Modi government introduced Agnipath to reduce military expenditure and redirect the budget to modernisation of the armed forces. Critics in India itself have said that the scheme was introduced without any previous risk assessment or study into its impact on the Indian military structure. Bhakta Bahadur Bucha, who spent 22 years in the Indian Army, says Agnipath will push India’s Gorkha regiments into crisis since they are the military’s largest and most prestigious units. The seven Gorkha Rifles regiments have 46 battalions, 60% of whom are Nepali. Furthermore, there are 125,000 Indian Gorkha retirees who receive a pension. Says Bucha, “India must not forget that its Gorkha units are on the frontlines in Kashmir, Pakistan, Ladakh, Arunachal and Bangladesh. And a four-year limit to military service will affect their morale and commitment. Soldiers will not be willing to fight wars if the job is temporary.” Ethics and nationalism aside, recruitment into the Indian Army is also in Nepal’s economic interest. Nearly 18% of the country’s population is working and living abroad because of the lack of meaningful jobs back home, and the interest of young people to join foreign militaries stem from this desperation.&nbsp; Dhan Bahadur Thapa of the United Federation of Ex-Servicemen and Police Welfare who was once a Colonel in the Indian Army explains: “If recruitment into the Indian Army is stopped, it will have a direct impact on Nepal’s economy, where jobs are already scarce. If recruitment is not resumed, ex-servicemen are prepared to take to the streets.” Read also: <a href="https://www.nepalitimes.com/banner/diary-of-a-nepali-soldier-in-france">Diary of a Nepali soldier in France</a>, Shree Bhakta Khanal

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Recruitment of Nepalis into Indian Army paused

Few things could be more incongruous for a country that prides itself in never having been colonised than for its citizens to fight in foreign armies. Yet, the tradition of recruiting Nepali soldiers that dates back to 1815 during Nepal's war with the East India Company continues to this day. Nepal’s leaders like to bash India and rouse the public with ultra-nationalist populism, but the fact is that thousands of Nepalis have fought and died for India in its multiple wars. Nepal’s soldiers in the Indian Army are at the frontlines against two neighbouring countries with which Nepal has friendly relations: Pakistan and China. Nepal should be grateful our neighbours do not hold that as a grudge against us. More than 45,000 young Nepali men lost their lives in the First and Second World Wars. Since the British Army recruited from only five ‘martial races’ in Nepal, entire villages in the mountains were devoid of young men during the last century.&nbsp; After India’s independence in 1947, Nepal, India and the UK signed a Tripartite Agreement allowing the continued recruitment of Nepalis into the Indian and British militaries without them being labelled ‘mercenaries’ even though, strictly speaking, that is what they were.&nbsp; The first choice for many young Nepalis is to join the British Army, and while 25,000 apply every year only 200 or so are picked. The Nepal government also bafflingly still allows the British to recruit on behalf of the security forces of Singapore, Brunei and Oman. Read also: <a href="https://www.nepalitimes.com/here-now/recruitment-of-nepalis-into-indian-army-paused">Recruitment of Nepalis into Indian Army paused</a>, Jibraj Chalise and Durga Rana Magar How desperate must the search for jobs be when society and the state find it perfectly acceptable for its young men to lay down their lives for someone else’s country. That fact alone represents the single most glaring failure of the Nepali state to protect and provide for its citizens. For the past two centuries, Nepal’s rulers have found a convenient safety valve in sending citizens away so they do not have to take responsibility for their welfare by providing decent livelihoods and a chance for a dignified life at home. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230812040856_70d95961a49bea87582ccd0bf8561935d7cd4f24af1c962ed3be5b49e49952e0.jpg" data-media-id="editor_1" data-image-id="20230812040856_70d95961a49bea87582ccd0bf8561935d7cd4f24af1c962ed3be5b49e49952e0" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Gorkha Trainees NT"> </figure>  Ironies of ironies: one of the 40 demands of the Maoists before launching their armed struggle in 1996 was for the government of Sher Bahadur Deuba to immediately terminate recruitment of Nepalis into foreign armies. Nearly 30 years and a decade-long war later, Deuba is now propping up a Maoist prime minister who has long forgotten about that demand, and the proposal to make a permanent Nepali UN peacekeeping force.&nbsp; The issue of foreign armies recruiting soldiers from Nepal has once more come up with New Delhi’s Agnipath scheme, and a halt to ‘Gorkhas’ joining the Indian Army. Indian Gorkha regiments today are a continuation of a service that Nepali soldiers have given for more than two centuries. Six of the 10 British Army Gurkha brigades went to the Indian Army because newly-independent India did not want to lose its Gorkha troops.&nbsp; They went into battle immediately after Partition in a confrontation with Pakistan. Read also: <a href="https://www.nepalitimes.com/here-now/india-s-trial-by-fire-for-soldiers-from-nepal">India’s trial by fire for soldiers from Nepal</a>, Anita Shrestha Thousands of Nepalis have been killed and wounded since. But last year India launched Agnipath reforms under which only recruits aged 17.5 to 23 years old can be enlisted for four-year periods, after which they are discharged with a lump sum but not eligible for a pension. Prime Minister Pushpa Kamal had said he raised the Agnipath issue with Narendra Modi during his state visit to India in May, but neither mentioned it jointly. And there the matter rests: Nepal too timid to bring it up, and India too preoccupied with itself. There has been ambivalence about allowing Nepalis to fight in foreign armies, balancing the need for household and national income with the morality of exporting soldiers as state policy. For the present, the contribution to Nepal’s economy outweighs ethical concerns.&nbsp; The 42,000 Nepalis who serve across 46 battalions in seven Gorkha Rifles regiments in the Indian military, and the 125,000 pensioners earn Rs60 billion a year. Indian Gorkha servicemen have expressed concern over Agnipath’s impact on pensions of future recruits as well as their own pensions. Agnipath would provide Nepal the route to phase out mercenary mercantilism. However for now, Nepal’s strategy should be to lobby with New Delhi for the status quo under the Tripartite Agreement until it can provide alternative prospects. The economy of one country, and the security of another are at stake. Read also: <a href="https://www.nepalitimes.com/banner/from-nalapani-to-kalapani/">From Nalapani to Kalapani</a> (Parts 1-5), Alisha Sijapati Kunda Dixit

In the Line of Fire

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131128/637234b89c7e80680e0c494bjpeg.jpg" alt="" width="2200" height="1410"/><figcaption>The 39 Gorkha Regiment marching contingent passes through the Rajpath during the 62nd Republic Day Parade-2011, in New Delhi on January 26, 2011. Photo: PRESS INFORMATION BUREAU INDIA</figcaption></figure>A Tripartite Agreement in 1947 allowed the continued recruitment of Nepalis into the British and Indian Armies, but New Delhi’s plan to reform its military has implications for Nepal’s economy and politics.However incongruous it may be in this day and age for nationals of a sovereign nation to be serving in the military of another country, enlistment overseas provides  income for tens of thousands of Nepali families as well as being an important source of foreign exchange for the country.Now, the Indian government is set to implement the ‘Agnipath Yojana’ to reduce its defence expenditure. The scheme will allow soldiers below the rank of commissioned officers across three branches of India’s armed forces to be hired only for four-year periods.There are an estimated 32,000 Nepalis in the Gorkha Regiments of the Indian Army, but many new recruits in recent years are Indians of Nepali origin. Pensions of retired soldiers is an important source of Indian currency for Nepal’s economy, which relies overwhelmingly on imports from India.Agnipath will mean that only a quarter of the 46,000 soldiers between 17-23 years hired in 2022 can stay on in the military after four years. Those being let go will get golden handshakes of INR1.7 million and will not be eligible for lifetime pension.As the clock winds down to its launch in September, there have been angry protests against Agnipath in India. But the Nepal government has been conspicuously silent despite the potential impact on recruitment, the economy, as well as implications for the 1947 Tripartite Agreement on the rights of Nepali soldiers.Read also: <a href="https://www.nepalitimes.com/latest/he-shot-down-a-fighter-then-shot-to-fame/">He shot down a fighter, then shot to fame</a>, Gopal Dahal<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131128/637234bc9c7e80680e0c494cjpeg.jpg" alt="" width="815" height="441">Says senior advocate Yuvraj Sangraula: “The Agnipath scheme violates the Tripartite Agreement signed at India’s independence which stipulates that pensions and other financial benefits be given to Gorkha soldiers as per the Indian Army Pay Code.”Recruitment of Nepalis into the British Army started even before the end of the 1814-16 war with the East India Company. Nepali soldiers have served in 10 Gurkha regiments of the British Army ever since, serving in both world wars, in the Malaya insurgency, and in Afghanistan. At least 55,000 Nepalis in the British Army have been killed in action, and many thousands have died fighting for India since 1947.Following Indian independence in 1947, six of the 10 regiments were assigned to India and four to Britain. India has since added another Gorkha Regiment, and there are currently 32,000 Nepali soldiers in 40 battalions. (India refers to its Nepali soldiers as 'Gorkhas', while the British prefer 'Gurkha'.)The Tripartite Agreement between Britain, India and Nepal spells out the rights of Nepali soldiers: their salaries, pensions, financial compensation, as well as facilities for families.The treaty guarantees equal basic pay for Gorkhas as other Indian soldiers, as well as pensions for servicemen who have served a minimum of 15 years.On 23 July, UML leader Bhim Rawal raised the Agnipath scheme in Parliament, asking for clarification from the government. He demanded that if Agnipath included Nepali soldiers, then Gorkha recruitment into the Indian Army be terminated.India earlier had informed the Nepal government that it would go ahead with recruiting Nepali youths in Butwal and Dharan. But after Foreign Minister Narayan Khadka held talks with Indian ambassador Naveen Srivastava on 24 August, the recruitment has been postponed in Butwal for now, and officials say that further discussions are underway.Experts, including former Nepali military brass, had called at the Prime Minister’s Office as well as the Foreign Ministry last week to urge talks with New Delhi about the impact of Agnipath on Nepal.Read also:<a href="https://www.nepalitimes.com/here-now/looking-back-at-the-1923-nepal-britain-treaty/"> Looking back at the 1923 Nepal-Britain Treaty</a>, Santa Gaha Magar<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131128/637234be9c7e80680e0c494djpeg.jpg" alt="" width="976" height="549"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131128/637234c09c7e80680e0c494ejpeg.jpg" alt="" width="742" height="413">Lt Gen (Retd) Bala Nanda Sharma says both sides should sort it out: “Nepal should decide and state its position on the scheme in no uncertain terms after discussing its intricacies with India.”Former Indian Ambassador to Nepal Ranjit Ray confirmed that the scheme applies to recruitment of Nepalis, and also urged the two governments hold talks.“There is much confusion in Nepal about the terms and conditions of the Agnipath scheme. This reform will affect Nepal, especially its economy,” Ray admitted.International relations experts are surprised that as a signatory to the Tripartite Agreement, and as the country whose citizens will be directly impacted, the Nepal government was not involved in decision-making. Instead, New Delhi just asked for Nepal’s ‘views’ as recruitment under the new scheme was due to start.“As a member of the Tripartite Agreement, Nepal should have been asked for input prior to any decision by the Indian government,” says historian Pratyoush Onta. “It is clear that Nepal was given little importance in the new recruitment scheme.”Onta notes that India and Britain only tout the agreement when they have problems. “This has been happening for 75 years,” continues Onta. “Just like Nepal was not consulted when the British decided to scale back Gurkha recruitment, India now wants to stop giving pensions to Gorkha servicemen.”Writer and journalist Kanak Mani Dixit agrees that India going ahead with the military reform without discussing it with Nepal is a violation of the Tripartite Agreement.“When Nepal signed the agreement in 1947, Nepali servicemen were guaranteed a tenure, and all the benefits that came with it up to and beyond retirement, even if pension was not explicitly stated in the agreement.” Dixit says. “Now, the term has been reduced to four years.”However, ambassador Ray argues that Agnipath has not violated the Tripartite Agreement. “I have thoroughly read the 1947 agreeement,” he says, “There is no provision for pension in it.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131128/637234c29c7e80680e0c494fjpeg.jpg" alt="" width="516" height="350">Former Maj Gen Gopal Gurung of the Indian Army Gorkha Regiment concedes that there is no mention of pension in the 1947 agreement, and the Indian Army Pay Code that Nepal’s argument hinges on has been subject to multiple revisions over the years and does not guarantee pension for Indian soldiers after retirement.Read also: <a href="https://www.nepalitimes.com/latest/gorkhas-on-the-frontline-between-india-and-china/">Gorkhas on the frontline between India and China</a>, Pratistha Rijal“The reform should only be considered a violation had Indian and Nepali soldiers not been treated equally,” argues Gurung. “There has been a severe gap in understanding because of the lack of dialogue between the two countries.”There are 125,000 Nepali retirees from the British, Indian and Singapore security forces who received Rs61.9 billion in pensions in the last fiscal year. After Agnipath comes into force, that amount could decrease by a quarter. The remittance Nepalis in the Indian military send home will also go down now due to the four-year military term limit.Former Lt Gen Ashok Mehta of the Indian Army predicts that Agnipath will henceforth discourage Nepali youth from enlisting.“They will not want to risk their lives just to get a lump sum of money in four years when they could be earning that amount by working in Japan or the Gulf,” Mehta says.The Agnipath scheme has once more opened the debate about the absurdity of recruitment of Nepalis into foreign armies. Nepali soldiers in the Indian Gorkha Regiments have fought and died in wars against Pakistan, China and in Sri Lanka – all neighbouring countries with which Nepal has friendly relations.When the Maoists launched their insurgency in 1996, they presented 40 demands to Sher Bahadur Deuba who was also prime minister then. One of those demands was a stop to recruitment by Britain and India of Nepali nationals into their army.Twenty-six years later, Deuba is prime minister for the fifth time in a coalition with the Maoist party. Demand for jobs in the Indian and British armies and the narrative of valour in battle appear to be too powerful for Nepalis and the Nepal government to stop  enlistment into foreign armies.Read also: <a href="https://www.nepalitimes.com/banner/from-nalapani-to-kalapani/">From Nalapani to Kalapani</a> (Parts 1-5), Alisha Sijapati

India’s trial by fire for soldiers from Nepal

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

Global warning bell in Belém

As people move out of Nepal’s trans-Himalayan districts, their faiths migrate with them to the cities and all over the world. The ancient animist faith of Bon Po predates the advent of Buddhism in Tibet, and its last remaining priests and devotees are found in villages like Lubra in Mustang and Samling in Dolpo. But as those villages empty out, Bon centres can now be found as far afield as Kathmandu, New York and Tokyo. The first Triten Norbutse Monastery was founded in Tibet in the 14th century by the Bon Master Shen Nyima Gyaltsen. Its monastery in Nepal is below the forested hills of Ichangu on the western outskirts of Kathmandu.&nbsp; Many are surprised to hear that there is a Bon centre in Kathmandu, and that it is located so close to Swayambhu. This Triten monastery was established by Yongzin Tenzin Namdak Rinpoche only 40 years ago to cater to adherents of the faith who lived in the capital. True to its reverence for nature, the shrine is verdant, with plants and flowers amidst a contrasting backdrop of Kathmandu’s ugly urban sprawl below. The monastery practices Bon culture and passes on teachings to students as well, who after completing 15 years of study graduate to become ‘Gese’.&nbsp; It is believed that Bon Po was brought to Nepal from Tibet by Tonpa Shenrab Miwoche. Over the centuries, Bon and Buddhism have become syncretic in Dolpo and Mustang, despite the differences in their belief systems. Followers worship nature and consider the human body, speech and mind as jewels. The human body is said to be composed of five elements: earth, water, fire, air, and the cosmos.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5.jpg" data-media-id="editor_0" data-image-id="20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="The Bon Po way of life NT"> </figure>  The Bon faith was much more widespread during the reigns of Nyathi Chenpo, the first king of Tibet to Namri Srongchen, the 32nd king. But it was after King Srongchen Gompo that Buddhism started making inroads on the plateau, and spread also in the Himalayan rimlands. There are also Bon followers in Humla, Jumla, Baglung, Mugu, Kaski and Chitwan, as well as in the United States and 50 other countries, indicating the movement of people within Nepal and outside.&nbsp; The Bon religion believes in reincarnation and that everything, including positive and negative thoughts are a result of past life karma. Buddhism focuses more on attaining Nirvana, a state of no suffering, where the subject is released from all his/her karmas. Bon has also inducted some Tantric practices and rituals, some of which are in parts similar, yet still different from Buddhism.&nbsp; “In Buddhist culture, circumambulation of shrines is clockwise, but in Bon culture, circumambulation is in an anticlockwise direction,” explains Chhiring Lama of Triten Norbutse Monastery. “The main Bon mantra is Om Ma Tri Mu Ye Sa Le Du, while followers of Buddhism chant Om Mani Padme Hum. Buddhism emphasises enlightenment by meditation and moral behaviour, while Bon beliefs centre on nature and ancestor worship, and placating the spirits. In religious texts, it is mentioned that there were 1,008 Buddhas throughout time. Tonpa Shenrab is believed to be the 8th Buddha, and Bon practitioners are guided by his teachings contained in 140 sacred writings known as Kangyur and 300 more scriptures known as Katen.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07.jpg" data-media-id="editor_1" data-image-id="20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="The Bon Po way of life NT"> </figure>  “We worship nature and its elements and the prayer flags contain religious texts and when the wind blows through it we consider it a prayer,” says Chhiring Lama. “We also worship ponds for the water and consider fire as a sacred element as well. We also consider snakes sacred, therefore worship ponds, considering them as the place of residence.” The interdependence between human beings and nature is clearly depicted through such traditions and practices which carry relevance today as the planet faces the crisis of climate breakdown.&nbsp; Important gods worshiped include Satrig Ersang, Shenlha Okar, Sangpo Bumtri, and Tonpa Shenrab Miwoche. But what is similar to Buddhism is an offering known as ‘torma’, a cone shaped ritual offering made from flour dough. Many Bon faithful are vegetarian, or abstain from meat during festivals.&nbsp; Over time, the rise of Buddhism in Tibet and beyond overshadowed Bon, pushing many of its practices to the margins. Yet, the tradition continues to live on, carried by those who see in it a deep connection to nature, the spirit world, and the roots of Tibetan culture.&nbsp; In many ways, the endurance of Bon is a reminder that even the quietest faiths hold timeless truths, waiting to be remembered and valued. Followers of Bon today are far fewer, and the knowledge about its traditions is not as widespread.&nbsp; “As time goes on, people adopt rituals and cultures that are more convenient to their daily lives,” says Chhiring Lama. “But that means forgetting or leaving behind one’s indigenous and ancestral roots.”

The Bon Po way of life

Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday, protesting what they have called the interim government’s inadequate efforts to address the demands of the GenZ movements. The demonstrators also sought to bar the UML from gathering at Maitighar, where party chair K P Oli was expected to announce its Youth Volunteer Force on Friday. The organisers consequently relocated the event. Friday’s demonstration at Maitighar comes as UML and GenZ representatives agreed to sit down for talks in Simara, where a curfew was imposed this week after youth protestors and party cadres clashed near the airport as demonstrators sought to stop UML leaders from flying in for a political event to Simara from Kathmandu.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5.png" data-media-id="editor_0" data-image-id="20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5" data-rendition-name="original" width="2160" height="1440" loading="lazy" alt="GenZ Maitighar"> <figcaption>Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday. Photos: SUBASH SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7.png" data-media-id="editor_1" data-image-id="20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7" data-rendition-name="original" width="2160" height="1439" loading="lazy" alt="GenZ Maitighar"> </figure>  &nbsp;Nepal’s interim government is increasingly cautious about the nation’s sensitive security situation in the lead-up to the 5 March election, as evidenced by pro-monarchy businessman Durga Prasai’s midnight arrest earlier this week over his inflammatory remarks as he called for protests this month. On Thursday, the Supreme Court ordered the government to present Prasai before the court within 24 hours.&nbsp; As it stands, the UML’s inauguration of a youth collective amidst its disregard for the demands of Nepalis for party reforms and a change in leadership highlights party chair and former PM K P Oli’s continued lack of remorse for the excesses of 8 September.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9.png" data-media-id="editor_2" data-image-id="20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9" data-rendition-name="original" width="2560" height="1707" loading="lazy" alt="UML Youth Volunteer Force NT"> <figcaption>The UML launched its Youth Volunteer Force on Friday. Photos: SUMAN NEPALI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad.png" data-media-id="editor_3" data-image-id="20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad" data-rendition-name="original" width="2560" height="1706" loading="lazy" alt="UML Youth Volunteer Force"> </figure>  Families of those killed and injured on 8 September have demanded that the ousted PM and home minister be held accountable for state brutality.&nbsp; This week, Human Rights Watch published a <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">comprehensive report</a> concluding that security forces fired indiscriminately on youth-led protestors on 8 September.&nbsp; The human rights watchdog urged the Sushila Karki-led interim government to investigate the excessive use of force as well as arson, vandalism and mob attacks on individuals on 9 September. The government has created a judicial commission to inquire into the deaths of 76 people over two days of protests.&nbsp; “The recent violence in Nepal included serious human rights violations, and those responsible should be held accountable, whether they are security forces or political actors,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch.&nbsp; She added: “The government should ensure that the investigations are independent, time-bound, and transparent, and that no one found responsible for breaking the law is unfairly protected from proper prosecution.” HRW’s investigation was based on testimony from 52 witnesses, victims, journalists, healthcare workers, politicians, and sources close to security forces. Researchers also verified photos and video footage shared on social media and with researchers; and visited the scenes of protests, properties subjected to arson and vandalism, and hospitals.&nbsp; A police officer said that officers opened fire with lethal force five minutes after the District Administration Office declared an emergency curfew around Parliament. Witness accounts and analysed footage did not show grave and imminent danger to life that would justify the intentional use of lethal force, stated the human rights watchdog in the report.&nbsp; The protestors and witnesses identified security forces who fired live ammunition at the protestors by their uniforms as members of the Armed Police Force (APF) and Nepal Police’s Special Task Force (STF). &nbsp; “They literally aimed at us and started shooting,” said one witness who sheltered behind a barricade as police continued shooting.&nbsp; A retired senior police official said police had failed to follow procedures for dispersing protests and using lethal force.&nbsp; Pathologists at a Kathmandu morgue told HRW that they determined 35 cases of death caused by “high velocity gunshot wounds” to the head, neck, chest, or abdomen.&nbsp; The witness recounted being taken into custody along with 33 other protestors by STF officers in riot gear, and said that police police personnel beat him with batons. Detainees were threatened and their IDs destroyed. Several witnesses said that the mob attacks on businesses, politicians, media companies, and educational institutions were very targeted, noting the absence of security personnel on 9 September as arson and violence raged across the capital.&nbsp; Some suggested that the violence may have been instigated by infiltrators associated with various political movements.&nbsp; On Discord, the platform where a significant number of demonstrators organised, participants noted that while there were calls for peaceful movement in the days leading up to the protest, some on the platform advocated for violence.&nbsp; Human Rights Watch has said that any credible allegations of criminal acts contributing to the violence must be investigated.&nbsp; Said Ganguly: “The authorities should recognise that widespread impunity for human rights violations in the past helped enable the violence that occurred this time in Nepal. It is crucial to reverse the decades-long tendency by successive governments in Nepal to bury investigations and stall prosecutions, and to bring about accountability and security sector reform.”