<img width="1500" height="938" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636baca29c7e80680e077f43jpeg.jpg" alt=""/>Nearly 50 years after American government pressure forced Nepal to <a href="https://archive.nepalitimes.com/article/nation/cannabis-high-time-to-lift-ban,2548" target="_blank" rel="noopener noreferrer">outlaw the cultivation and consumption of cannabis</a>, the Himalayan country is trying to bring back an important cash crop that also may have medicinal applications to fight COVID-19.The pandemic was already spreading in March when former law minister Sher Bahadur Tamang of the ruling Nepal Communist Party (NCP) registered a private bill in Parliament to overturn a 1976 law that criminalised the cultivation, sale and consumption of cannabis.“The bill is designed for the economic upliftment of poor farmers that depend on the cannabis crop,” says an optimistic Tamang. “So far we have received very positive response from fellow MPs and I am sure there will not be a single vote against it.” <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/cannabis-high-time-to-lift-ban,2548" target="_blank" rel="noopener noreferrer">High time to lift ban</a>, Sarthak Mani Sharma<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/undo-hash-ban,3657" target="_blank" rel="noopener noreferrer">Push to undo hash ban in Nepal</a>, Sahina ShresthaTamang’s bill proposes formation of a 14-member Marijuana Board chaired by the secretary of the Ministry of Health which will regulate commercial cannabis cultivation, its trade and sale. Individuals above 18 years of age can apply for annual license from the local government or their district to farm cannabis. The Cannabis indica plant grows wild in Nepal, and especially thrives in the western mountains where the stem, leaves, resin and oil are used in the household for medicinal purposes, or sold.The open sale of <a href="https://archive.nepalitimes.com/article/nation/undo-hash-ban,3657" target="_blank" rel="noopener noreferrer">marijuana</a> in Kathmandu in the 1960s was what drew the hippies to Nepal, and as the counter culture and the anti-Vietnam War movement grew, President Richard Nixon saw it as a security threat.<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.youtube.com/watch?v=CJ-ER0GdJd8" target="_blank" rel="noopener noreferrer">“America’s public enemy number one is drug abuse,” he said</a> (pictured below) and vowed to wage a “worldwide offensive dealing with the sources of supply as well as Americans stationed abroad wherever they are in the world.” <figure><img width="1151" height="847" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636baca59c7e80680e077f44jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1068" height="788" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636baca79c7e80680e077f45jpeg.jpg" alt=""><figcaption> </figcaption></figure>Kathmandu had become a haven for anti-war ‘peaceniks’, draft dodgers, and Vietnam veterans. White House recordings from the early 1970s reveal Secretary of State Henry Kissinger warning Nixon: “They come from Nepal to demonstrate against you because up there they can get free pot ... or at least it is legal.”Banning cannabis drove the cultivation and use of this important cash crop underground and into the hands of organised criminals with police and political protection. Nepal’s subsistence farmers were pushed deeper into poverty, and may even have sparked the Maoist revolution in later years.Campaigners in Kathmandu now see no reason why Nepal should keep the ban when the Americans who forced it on Nepal have legalised it in 25 states for medical and commercial purposes.The COVID-19 pandemic has added another reason to lift the ban. A Canadian study in April determined that chemicals found in the Cannabis sativa plant could <a href="https://www.preprints.org/manuscript/202004.0315/v1" target="_blank" rel="noopener noreferrer">block SARS-CoV-2 from entering a person’s body</a>.Researchers at the University of Nebraska and the Texas Biomedical Research Institute also <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7187842/" target="_blank" rel="noopener noreferrer">published a paper</a> detailing the anti-inflammatory properties of chemicals in the cannabis plant that could be useful in treating lung inflammation in COVID-19 patients. In Israel, <a href="https://nocamels.com/2020/06/israel-researchers-rambam-campus-cannabis-covid19/" target="_blank" rel="noopener noreferrer">clinical trials have been scheduled</a> to use cannabis-derived Cannabidiol (CBD, the non-psychoactive component in the plant) to treat inflammation in COVID-19 patients. An Israeli start-up Stereo Therapeutic recently said that<a href="https://www.israel21c.org/cbd-may-improve-steroid-therapy-in-autoimmune-covid-19-patients/" target="_blank" rel="noopener noreferrer"> cannabis could improve steroid</a> therapy in autoimmune COVID-19 patients."Cannabis has cooling effect and it has been used in traditional medicine to reduce fever. Unsurprisingly this aligns with the recent findings," says legalisation activist Rajiv Kafle. "I'm a strong believer that the use of chemicals in the cannabis plant can lead us to COVID-19 treatment."Although these are preliminary findings, they have added a sense of urgency to pro-cannabis activism in Nepal, and if Tamang’s Cannabis Cultivation (Management) Act is endorsed by Parliament, Nepali farmers could benefit. The bill restricts farmers from cultivating only cannabis in their land and proposes that farmers with more land can use a smaller proportion for cannabis cultivation. It will allow farmers to sell marijuana directly to people with a doctor’s prescription, to pharmaceutical companies approved by the Board, and to authorised agents for export.Explains Tamang: “Given the international demand for good quality marijuana for medicinal use, farmers here can easily earn up to Rs2 million a year cultivating it in addition to hemp and other crops. It would reduce out-migration, reduce poverty and encourage tourism.”Not everyone is happy with the bill to legalise cannabis. Critics say it takes the easy way out, focusing solely on cannabis sale by exporting the raw produce without exploring indigenous use in traditional medicine. They say it also ignores Nepal’s potential in developing by-products like hemp fibre.“The bill in its current state is invested in controlling marijuana and making money out of it. This in fact reinforces fear associated with smoking weed,” says Saurav Dhakal of the sustainable agriculture group, Green Growth. “We should be studying various cannabis strains found in Nepal and build our capacity for value-added products because raw marijuana gives us no competitive edge.” There is also a distinct lack of awareness about the differences between <a href="https://www.nepalitimes.com/banner/clothed-in-cannabis/" target="_blank" rel="noopener noreferrer">hemp</a> and marijuana. In fact, cannabis legalisation debate has largely overshadowed the potential of hemp, the strongest natural fibre in the world.  <figure><img width="1400" height="933" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636baca99c7e80680e077f46jpeg.jpg" alt=""><figcaption> </figcaption></figure>Hemp is a subspecies of cannabis and contains 0.3% or less tetrahydrocannabinol (THC), the naturally occurring psychoactive compound that gives cannabis its narcotic property. It is used in textile, cosmetics, food and beverage, and even in construction. In its natural state, hemp plant restores soil fertility and absorbs four-times more carbon dioxide than adult trees.  <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/clothed-in-cannabis/" target="_blank" rel="noopener noreferrer">Clothed in cannabis</a>, Pema Sherpa<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=879#.XwbkqG0zbIU" target="_blank" rel="noopener noreferrer">Legalise it</a>, Alok TumbhahangpheyMarijuana is also a subspecies of cannabis but contains up to 30% THC and is used for recreational smoking. It is known to have therapeutic effect for over 100 illnesses. “It is very important that we differentiate between hemp and marijuana but the proposed act doesn’t do so in precise terms,” says cannabis consultant Ravi Pradhan. “We should make hemp legal for cultivation, consumption and sale. As for marijuana, we are still harbour false perceptions from 50 years ago. Nepal could benefit far more from both marijuana and hemp being legal.” Medical marijuana now accounts for 71% of the global legal marijuana market, which by 2027 will be worth $76 billion a year, and activists say Nepal can be a major source of these crops.Despite his reservations, Saurav Dhakal admits that the bill is a step forward: “The good news is that we have a bill in Parliament, people are finally listening to us and discussing cannabis as a beneficial crop rather than a drug. But we need to make sure that legalising cannabis benefits the neediest Nepalis.”------------------------------------------------------------------------------------------------------------------------------------------------Medical marijuana<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bacac9c7e80680e077f47jpeg.jpg" alt="" width="500" height="598">Marijuana is known to have therapeutic effects in over 100 illnesses ranging from cancer and HIV/AIDS to bipolar disorder and spinal cord injuries. Its possible use in treatment of COVID-10 patients is what getting cannabis legalisation activists excited.  Rajiv Kafle is an HIV/AIDS survivor and says marijuana has been particularly effective for people living with HIV. He says: "Former cocaine and heroin users who now use cannabis are now more stable, have higher quality of life and are economically sound.”Earlier anti-HIV drugs such as didanosine and stavudine caused painful nerve condition called pheripheral neuropathy as a side effect. Cannabis proved to be effective in relieving pain as well as in treating symptoms caused by stronger anti-retrovirals.Despite obvious benefits, the prescription of marijuana is not easy. There is social stigma associated with using hashish because it is illegal. Nepal’s 1976 law allows medical use of marijuana but there is no prescribing standard and medical professionals are not educated to direct proper doses and quantities.The proposed bill in Parliament allows households to grow up to six cannabis plants without permit. This means patients who need to use marijuana can easily grow the plant themselves.------------------------------------------------------------------------------------------------------------------------------------------------POT VOCAB[caption id="attachment_50461" align="alignnone" width="640"]<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bacae9c7e80680e077f48jpeg.jpg" alt="" width="640" height="480"> Photo: SUMAN BASNETMarijuana: Psychoactive drug made from the dried leaves and flowers of the Cannabis plant, contains tetrahydrocannabinol (THC). Also known as weed, pot, grass, Mary Jane.Hemp: A variety of Cannabis plant that grows up to 3m tall and contains less than 0.3% of THC. Fibre is used to  make clothing and bagsHashish: Also known as charas in the Subcontinent, is the resin made from rubbing Cannabis flowers and top leaves.Ganja: Marijuana in Nepali, Hindi and Sanskrit, used to denote both the drug and the Cannabis plant.Bhang: Edible form of marijuana made by crushing green leaves and buds of the Cannabis plant. Smoked and eaten at festival time in Nepal.

Sonia Awale

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Grass is greener in Nepal

It is only April, and Himalayan expeditions are already making rotations to acclimatise on Annapurna and Dhaulagiri, and will soon be making summit pushes.&nbsp; On Mt Everest, Icefall Doctors are fixing ropes and ladders into the Western Cwm as international climbers arrive at Base Camp. Spring 2026 is going to be the busiest and most crowded so far in the Nepal Himalaya. The main reason is that China has closed expeditions from the north side for eight-thousanders Everest and Cho Oyu, and also Xixapangma.&nbsp; The closure is informal, from what one can make out. The Chinese have not put out any official statement, but there are no permits either. The reason seemingly was the ‘Rising Dragon’ firework display last September by pyrotechnic artist Cai Guo-Qiang near Xigatse.&nbsp; Working with outdoor wear company Arc’teryx, Guo-Qiang set off an impressive sequence of orange and white fireworks that wound up a mountain. The spectacular display was criticised for damaging the fragile ecology of the Tibetan Plateau. But this cannot be the only reason the north side is closed. Experienced Everest blogger Alan Arnette anticipates that about 125 climbers will shift to the Nepal side of the mountains, and expects there to be up to 900 summits this spring — up from the highest spring number so far of 876 climbers on top in 2019.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082.jpg" data-media-id="editor_0" data-image-id="20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="mountaineering"> <figcaption>Photo: KARMA TENZING</figcaption> </figure>  The early Base Camp arrivals are having problems with their first rotations because of heavy snow this season. Unlike previous springs, this year has seen back-to-back blizzards at high altitudes since February. The increased snow load on the slopes have increased avalanche danger right across the mountains.&nbsp; There has been an increase in numbers on Everest despite the West Asia war, flight disruptions, LPG shortage and new regulations. The permit fee has gone up for the first time since 2015 from $11,000 to $15,000 this year.&nbsp; The Tourism Bill passed by Nepal’s Upper House last year would have required climbers to have first summitted a 7,000m peak in Nepal before attempting Everest. However, the Department of Tourism has confirmed that there are no new experience requirements this season. Some want this rule changed to include 7,000m peaks anywhere in the world. That could be one reason people are rushing to climb Everest before the Nepal government changes its mind and enforces the new regulations on prior experience on Everest. “It’s probably going to encourage a lot of people that simply are not ready to go,” reckons Alan Arnette. “Once again, we may see a lot of inexperienced people on the mountain trying to get in before the rule comes into place, if it does.”&nbsp; Arnette has always been sceptical of Everest regulations, and points out many instances where rules have been announced but not implemented over the ten years that he has been tracking them. For example, a helicopter ban to Everest Base Camp was announced last year, but rescinded. A rule requiring climbers to bring down waste was never seriously enforced. Since there is so much money involved for the government and for the operators, any any rule that would reduce revenue is never fully implemented. This year there is another ‘High-Altitude Trash Quota’ rule requiring climbers and guides operating above Camp 2 to collect and bring down at least 2kg of waste from the higher camps.&nbsp; The Nepal government has tried to diversify peaks on offer by reducing the royalty on climbs, but the draw of Everest, Annapurna and other eight-thousanders seems to be too great. Even when the permit fees for some remote peaks like Kangri Shar, Himlung and Api, were reduced to $400, there are few takers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d.jpg" data-media-id="editor_1" data-image-id="20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Photo Damien Francois"> <figcaption>Photo: DAMIEN FRANCOIS</figcaption> </figure>  TIME LAPSE Clients and expedition operators have been trying to shorten the time needed to complete an Everest expedition from the city of origin to the top and back. Since Nepal has no rules about spending a certain number of days in acclimatisation, this has allowed some expedition organisers to use new technology.&nbsp; Austrian operator Lukas Furtenbach last May led a group of four British ex-military clients to the summit within a week of leaving London. This climb was scrutinised because the group had practiced breathing xenon gas, a substance that increases the count of red blood cells and is banned in competitive sports. The climbers had also trained for months at home in hypoxic tents, and used supplemental oxygen during the actual climb.&nbsp; The success of that expedition prompted an investigation by Nepal’s Ministry of Culture, Tourism, and Civil Aviation, but there was nothing it could do because the team had taken the xenon in Germany two weeks before their trip. But even if they had administered the gas in Nepal, it would technically not be illegal. Furtenbach is firmly in favour of speed, and of using the gas. “The only reason why we are working with xenon is to make climbing safer, to protect climbers from high altitude sickness,” he says, arguing that the less time climbers spend on the mountains, the less their exposure is to disasters, sickness, and they also generate less trash.&nbsp; His firm, Furtenbach Adventure, offers a three-week Everest South Flash expedition, at a cost of €100,000, using custom oxygen systems. Other expeditions take up to two months.&nbsp; A young American duo of Ryan Mitchell and Justin Sockett got to Everest Base Camp five days ago. They are preparing for an oxygen-free summit attempt.&nbsp; ‘ Being around these mountains for one day has already brought me so much joy. Every time I come back to the Khumbu I feel more familiar and connected,’ posted Mitchell. He and Sockett have since summitted Lobuche East (6,119m) as they continue to acclimatise and wait for the Khumbu Icefall route to be fixed.&nbsp; There are other sans-O2 trips planned this climbing season in Nepal. Norwegian Kristin Harila, the fastest in the world to climb all 14 8,000ers (in 92 days), is attempting the Nuptse, Lhotse, and Everest three-peak climb without supplemental oxygen. American Tyler Andrews and Ecuadorian Karl Egloff are continuing their race to break records in Everest. While Andrews is attempting the Fastest Known Time from Base Camp to the top without oxygen, Egloff is taking it a step further and going for a round trip: from Base Camp to the summit and back in record time.&nbsp; Both Egloff and Andrews had attempted these climbs in 2025 spring, but abandoned around 7,000m due to bad weather.&nbsp; Kami Rita Sherpa wants to extend his all-time record of total Everest summits to 32, while Kenton Cool from England is chasing 20, a non-Nepali record.&nbsp; The first summits of the season will be in late April, or early May depending on weather. Besides Everest, there are a lot of interesting climbs on lesser known peaks.&nbsp; The Japanese trio of Masayuki Takenaka, Tatsuro Sugimoto, and Ryota Nomura, for example, are attempting the unclimbed Jarkya Himal (6,473m) near Manaslu. &nbsp;&nbsp; <h2>Fake rescues</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6.jpg" data-media-id="editor_2" data-image-id="20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6" data-rendition-name="original" width="800" height="519" loading="lazy" alt="Fake rescues"> </figure>  This year’s spring climbing season has coincided with Nepal’s new government taking action against alleged perpetrators in fake rescues and insurance fraud. The Central Investigation Bureau (CIB) has already arrested more than a dozen trekking agency executives, hospital managers and helicopter company executives for medevac insurance fraud. Climbers are known to fabricate medical emergencies, get flown down from as high as Camp II on Everest, and then submit false insurance claims.&nbsp; Sometimes one flight is made to look like many using fake invoices. Trekking companies are also involved in fake rescues of hikers who just get tired of walking.&nbsp; Too many fake claims could lead to insurer’s losing confidence in the industry, and increased premiums, leading to delayed responses in real accidents.&nbsp; As a result of the scandal, there is now more scrutiny from the government about rescues. Already, helicopter operators have to wait for permission before carrying out rescues while their application is vetted.&nbsp; The worry is that this could cause unnecessary delays when time is of the essence in mountain rescue. Already, medevacs are delayed because of the bureaucracy needing permits to fly to sensitive regions bordering China. Last year, a climber died on Himlung because helicopter rescue took too long while operators ran from door to door in Kathmandu to obtain necessary permits. <h2>Mingma David Sherpa, MP</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25.jpg" data-media-id="editor_3" data-image-id="20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25" data-rendition-name="original" width="960" height="958" loading="lazy" alt="Mingma David Sherpa"> </figure>  Meet Mingma David Sherpa, Nepal’s first mountaineer to be nominated to Parliament. Sherpa is a self-made professional climber from Rolwaling, who rose up from an expedition porter to a record-breaking mountaineer and expedition organiser. As an insider, he is now in a position to streamline laws related to Nepal’s trekking and mountaineering sector. He is co-owner of EliteExped with Nims Purja, and in 2021 the two were part of a team of Nepali climbers to be the first to make it to the top of K2 in winter, the second highest mountain in the world in Pakistan.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54.png" data-media-id="editor_4" data-image-id="20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54" data-rendition-name="original" width="2082" height="1396" loading="lazy" alt="Mingama David Sherpa"> </figure>  Mingma David was also on Purja’s Project Possible to climb all the 14 eight-thousanders in six months, shattering the previous record of seven years. He was featured in Purja’s documentary 14 Peaks: Nothing is Impossible.&nbsp; At age 30 he became the youngest climber to reach the top of all 14 eight-thousanders for which he was awarded the Piolet d’Or. Mingma David has taken part in dozens of successful rescues of fellow climber, including the highest ever long-line rescue on Dhaulagiri and saving the life of fellow-climber from 8,600m on Everest. <h2>April Fool</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4.jpg" data-media-id="editor_5" data-image-id="20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4" data-rendition-name="original" width="1365" height="1820" loading="lazy" alt="Furtenback Adventures"> </figure>  The Austrian expedition outfitting company Furtenbach Adventures spoofed the anticipated crowds on an April First post on social media this week, showing ‘a fully galvanized, weather-resistant steel staircase, complete with a sturdy handrail’ to make the Hillary Step bottleneck on Mt Everest less dangerous.

Nepal Himalaya Spring 2026

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Creating a firm future for Nepal

Barely a month after the March election, newly elected lawmakers convened for the first session of Parliament on Thursday (picured above).
But the RSP had already hit the ground running in its first week in office. Prime Minister Balendra Shah and his trusted Home Minister Sudan Gurung conducted a slew of high profile arrests. &nbsp;
The former prime minister, home minister and Kathmandu CDO, among others, were detained in connection with the 8 September massacre outside Parliament.&nbsp;
The Cabinet unveiled its 100-point roadmap outlining sweeping institutional, economic and social reforms to ensure better service delivery, and setting deadlines for itself for the first 100 days in office.&nbsp;
Key priorities include strengthening digital governance, removing redundancy across the civil service, investigating assets of high-ranking political and government figures, depoliticising the bureaucracy and universities, as well as broader legal and constitutional reforms.
“The move to hold former leaders accountable sends a powerful signal that impunity is no longer politically untouchable,” says Pukar Malla of Governance Lab at Daayitwa Abhiyan. “On the reform agenda, the direction is right but the timeline is too compressed, 100 days is not enough to transform the system. It is only enough to establish the discipline of transformation.”
The RSP’s decisions have mostly been greeted with enthusiasm by the electorate which gave the party an almost two-thirds majority in Parliament. Nepalis are for the first time in decades genuinely hopeful about the country’s leadership.
“The enthusiasm is real because the pain is real. &nbsp;But people are not just asking for symptoms to be treated. They want the patterns underneath the symptoms to change,” says Malla. "That is where the leadership journey becomes much harder, because structural change is slower, more conflictual, and far less theatrical than headline decisions.”
The RSP’s prompt proactiveness signals a can-do approach designed to placate voters impatient to see immediate change, and also to warn influential figures of the past three decades that anyone can be dragged to jail or put on the immigration no-fly list. The message is also to the bureaucracy to pull its weight, and clean up its act.&nbsp;
But in public discourse, there is also a sense that anyone critical of the government’s decisions can be targeted and trolled. Enthusiasm about the new government &nbsp;seems to outweigh critical and nuanced reasoning about whether ‘Balen Sarkar’ can achieve targets it has given itself within the self-imposed timeframe.&nbsp;
Any concerns about the RSP’s perceived high-handedness or criticism of state overreach tends to be dismissed, branded as noisemaking by mouthpieces of old parties.
Critics say the arrest of Oli, Lekhak others did not follow due process, and displays the very partisanship and vendetta tactics of the legacy parties that the RSP vowed to dismantle.
“The detentions and the plans this government has made for the next 100 days might be necessary, but they seem to be optimised for public spectacle and rather than being deliberative steps for sustained reforms,” says researcher Dovan Rai of Body and Data.
She adds: “K P Oli failed because he put himself above the system, and it seems as though that power has just transferred from one personality to another. What we need is strong institutions, not strongmen that play the role of hero or villain.”
The RSP’s strategy to overhaul the state apparatus is high-stakes, aspirational and at times unquantifiable. The new leaders and the public must recognise that Nepal’s problems cannot be solved in 100 days.
The near two-thirds dominance in Parliament offers the RSP a chance to show results, but it is also an unforgiving majority. Failure is not an option.
Adds Pukar Malla: Political leadership may drive change from above, but civil society and citizen networks have to partner from below.”
The NC and the UML are licking their wounds, and again proved their obsolescence this week by trying to rehabilitate and reinstate old leaders. The UML is on warpath, and missed another opportunity to turn a new leaf by rejecting 36-year-old Suhang Nembang as parliamentary party leader.
People who did not vote for RSP must give the party a chance to deliver on promises. But the party's most effective opposition may have to be its own voters, who must play the check and balance role by insisting on results, and preventing fawning support for populist leaders resulting in authoritarian creep. &nbsp;&nbsp;
“The public now plays a critical role in holding the leadership accountable, it must go beyond small wins,” says Dovan Rai. “Support must not come from opportunism, and criticism must not be based on prejudice.”

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