<figure><img width="853" height="552" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d185a9c7e80680e0ac7bfjpeg.jpg" alt=""/><figcaption>From right to left: BP Koirala, his nephew Naresh Koirala, wife Sushila and sister Bunu on the balcony of Naresh’s apartment in Hong Kong in 1980. All photos, courtesy: NARESH KOIRALA</figcaption></figure>20 July 1982. Naresh Koirala vividly remembers the humid afternoon in Hong Kong when the telephone rang. His wife said it was Girija Prasad Koirala (affectionately called Sanobabu in the family).It was four days since <a href="http://archive.nepalitimes.com/news.php?id=6932#.YWe-sC2B2fQ" target="_blank" rel="noopener noreferrer">BP Koirala</a> had been flown to Bangkok for treatment, and Naresh Koirala, BP’s nephew and a geotechnicial engineer based in Hong Kong at the time, was preparing to fly to Bangkok.Girija Koirala’s voice on the phone was sombre: “You don’t have to come now. We are taking Sandaju (BP) back to Nepal as the doctor suggested. There is no hope now.”There was silence on the line, there was not much to say. Naresh Koirala put the receiver down and with a heavy heart walked quietly to the balcony on the 14th floor of his flat overlooking the South China Sea. The ocean shimmered in the afternoon sun.  Two years before, BP and Naresh had met on that same balcony, talking about <a href="https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/" target="_blank" rel="noopener noreferrer">Nepal’s democratic future</a>. BP was returning to Nepal from a conference in Japan and was making a weeklong stopover in Hong Kong. BP’s wife, Sushila, and his sister Bunu were also with him.Naresh remembers that this was after the May 1980 referendum in which the people were asked to choose between continuing with a reformed party-less Panchayat system, or a multi-party system. BP had supported multi-party, but despite the growing pro-democracy movement in the country, his side lost by about 400,000 votes.  It was widely believed that the Panchayat system won because the referendum was rigged. But BP decided to accept the result in spite of the heavy pressure from his own party colleagues like Ganesh Man Singh to reject the outcome.   <figure><img width="200" height="200" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d185d9c7e80680e0ac7c0jpeg.jpg" alt=""><figcaption>Naresh Koirala</figcaption></figure>Naresh Koirala asked BP about this, who explained his reasoning: once you take part in a voting exercise, it is your responsibility to accept the results, whether you win or lose. The days and weeks following the result of the referendum were the most disheartening for BP. Yet, he did not abandon hope nor the struggle to restore democracy in Nepal. He had faith in the Nepali people and their desire for freedom.Naresh Koirala had become a de facto spokesperson for Hong Kong-based media covering the referendum and remembers an Australian friend telling him: “You had a choice of continuing to live in chains or freedom, you chose chains.”Naresh himself had been puzzled by his uncle’s decision to accept the result. On that balcony that day, he broached the touchy subject: perhaps Nepal was not yet ready for a western parliamentary style democracy – maybe only the literate and those with college degrees should be allowed to vote, he asked.BP had a sharp and quick response: “That is exactly how tyrants think. That the common citizen knows nothing while the dictator himself, being all-knowing, holds all authority over the people’s choices and rights. That is exactly the type of thinking that gave rise to Hitlers and Stalins.”https://youtu.be/p2WA1bGOcPcBP Koirala listed three reasons why he accepted the referendum result: first, he could not say without a doubt that even his own multiparty supporters had not cheated. Second, he believed complaints about irregularities should have been raised before the result was announced, not after his side lost. (“What if we had won, how would we have considered the irregularities then?”)  The third reason was that he feared rejecting the referendum verdict could have precipitated a civil war. “I would not be able to live with such a heavy burden,” he told Naresh.Always thinking about the future consequences of his actions and not just the immediate present, <a href="https://www.nepalitimes.com/banner/america-nepal-and-the-royal-coup/" target="_blank" rel="noopener noreferrer">BP Koirala’s politics</a> was heavily guided by his moral ethics and humanist philosophy. That is why to this day, as his Nepali Congress party under the leadership of <a href="https://www.nepalitimes.com/latest/deuba-5/" target="_blank" rel="noopener noreferrer">Sher Bahadur Deuba</a> is questioned about its adherence to democratic ideals, BP Koirala’s name is often invoked. BP’s own son, Shashank, is in the race for party leadership in the upcoming general convention. <figure><figcaption>BP Koirala (with stick) and other Nepali Congress leaders Girija Koirala, Krishna Prasad Bhattarai and Ganesh Man Singh at Kathmandu airport before he left for cancer treatment in 1982.</figcaption></figure>That evening in Hong Kong, Naresh Koirala also asked BP if he had any resentment or a sense of revenge against kings Mahendra and Birendra for the years of persecution and torment. His reply was: “Such feelings take one nowhere near one’s goal, I am certain the kings themselves judge and evaluate their own actions.”BP Koirala’s dramatic political career spanned the end of the 104-year-old Rana regime in 1950 and the restoration of democracy in 1959. He was the first democratically elected prime minister of the country, and held the office for 18 months before being deposed and imprisoned by <a href="https://www.nepalitimes.com/latest/putsch-ek/" target="_blank" rel="noopener noreferrer">King Mahendra in the coup of 15 December 1960</a>. He spent the rest of his life either in prison or exile, and in steadily deteriorating health. <figure><img width="800" height="1084" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18619c7e80680e0ac7c2jpeg.jpg" alt=""><figcaption>BP Koirala at Ocean Park in 1980, when he was already unwell.</figcaption></figure>Even then, he used to say that he endured physical, emotional, and familial troubles because of the love and support of the Nepali people, friends, and family. The hurdles that punctuated his life all came with the job description of politics. In fact, he always said that he was more worried about Sushila, and how to give his wife the life she deserved. Naresh Koirala recalls that during his Hong Kong stopover in 1982, BP, Sushila and Bunu were returning to their car at Ocean Park after sight-seeing, when BP was slightly separated from the group.  Naresh looked back and took a picture of BP lost in thought, hands akimbo. Bunu whispered to Naresh that BP was not well, and he went back to where he was standing. BP waved his hand as if to say not to worry: “It is all right, I will join you.”Naresh Koirala has kept a letter BP wrote to him dated 14 December 1981, asking him not to be despondent. He writes: ‘I have undergone all kinds of hardship and deprivation. I have no sense of suffering.’ He was at the time undergoing chemotherapy in Nepal for throat cancer and had returned from Bombay’s Tata Hospital. Weakened by the disease and chemotherapy, his days were spent in the company of visitors and well-wishers with whom he engaged in lively conversations. He continues in the letter: ‘Do not be despondent, I have lived a full life – very exciting, adventurous and, in my term, a missionary life … The greatest satisfaction in life is the constant awareness that you are constantly being used up by your own mission – I have that satisfaction.’He said his only regret was that he wished that he had spent more time with his children, especially his daughter, Chetana. <img width="621" height="834" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18649c7e80680e0ac7c3jpeg.jpg" alt=""><img width="619" height="831" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18669c7e80680e0ac7c4jpeg.jpg" alt="">BP Koirala’s handwritten letter in English to Naresh Koirala from his hospital bed while undergoing chemotherapy in 1982.That evening in Hong Kong a year earlier, BP confided to Naresh: “If anyone can say when confronting death that they have no regrets and resentment, and that they were dedicated to their work, that is a content and satisfied life.”In July 1982, when Naresh came to Kathmandu, BP was already severely worn out by cancer. BP dedicated his life to uplifting the living standard of Nepalis through genuine democracy, but he feared that he would not live to see his life’s work completed. It is worth pondering what he would have thought of Nepal today, nearly 40 years after his death.In the last four decades, the country saw a People’s Movement that turned the country into a constitutional monarchy, a decade-long war, a massacre of the royal family, an unstable transition to federalism, a secular republican constitution, and the current Nepali Congress-led coalition with the Maoists.The cancer spread, and family members decided to take him abroad for treatment. On the morning of the day of departure, <a href="http://archive.nepalitimes.com/news.php?id=4714%22 %5Cl %22.YWVIWC8RppQ%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">Ganesh Raj Sharma</a> came to BP’s residence at Chabahil with a tape to record his autobiography, as he had been doing for two months.  The interview is yet to be published, Nepali edition of his <a href="http://archive.nepalitimes.com/news.php?id=5205%22 %5Cl %22.YWVFLC8RppQ%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">Atmabrittanta memoir</a> only include photos taken at the time. At one point in the tape, Sharma asks BP, “How do you want the Nepali people to remember you?”  Lying on his bed, surrounded by his niece, Sailaja, and his daughter-in-law, Nona, BP looked tired. Naresh Koirala was taking photographs and remembers thinking that BP must have been weary with the thoughts of the impending travel. <figure><img width="464" height="418" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18689c7e80680e0ac7c5jpeg.jpg" alt=""><figcaption>A bed-ridden BP Koirala gives his last interview to Ganesh Raj Sharma at his home in Chabahil with niece Shailaja Acharya and sister-in-law Nona Koirala.</figcaption></figure>BP replied in his rasping voice into a small microphone: “I do not think I have done anything great or worth remembering, but if people wish to remember me, I hope they think of me as a decent human being who tried to honestly, sincerely and wholeheartedly to work for the welfare of the people and the nation.”Adapted by Ashish Dhakal from Naresh Koirala's बीपीका आखिरी दिनहरू published in <a href="https://www.himalkhabar.com/category/samaj%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">Himal monthly magazine</a>. Watch <a href="https://www.youtube.com/watch?v=p2WA1bGOcPc&amp;t=21s%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">video of Naresh Koirala</a> remembering BP Koirala.For BP’s diary from Sundarijal Jail: read series in Nepali Times, <a href="https://www.nepalitimes.com/nepali-times-search/?q=back+at+sundarijal" target="_blank" rel="noopener noreferrer">Back at Sundarijal</a>.

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Last Days with BP Koirala

<img width="675" height="849" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181144/636be7739c7e80680e0877ffjpeg.jpg" alt=""/>It was a hazy winter afternoon  when without warning at exactly 1PM, soldiers appeared on the streets of Kathmandu. Singha Darbar was cordoned off. Politicians, including Prime Minister B P Koirala who had been elected a year-and-half previously, were picked up simultaneously from their homes or offices, and hauled off to prison.   On Tuesday, 15 December it will be exactly 60 years since that fateful day which would determine the course of Nepal’s history for decades. King Mahendra and Prime Minister BP Koirala met at the palace for dinner a few days before the putsch. The King had just returned from a four-month trip to Japan, the United States and UK, and top secret plans were already in place for the coup d'état. Years later, Koirala related how towards the end of that meal, Mahendra (wearing trademark shades even though it was dark inside the room) gestured to Queen Ratna to leave and told him: “There cannot be two lions in a cage.”BP writes in his memoir that he had a ‘love hate’ relationship with Mahendra, who appreciated his work ethic, but was increasingly jealous of his popularity. The King’s aversion to political parties was well known, zamindars hated BP’s new land reform bill, and Mahendra sensed that Nehru’s India and Mao’s China, for different reasons, could live with a coup, as long as it did not make Nepal unstable.So, on पुस १, २०१७ (first day of the month of Pous 2017) the King made his move. In a speech he accused the Nepali Congress government of “failure to maintain law and order, being anti-national, corrupt and unaccountable”. The Swiss Ambassador was visiting Kathmandu from New Delhi on 15 December, and wrote a long cable to Berne about how BP Koirala had earlier talked about the difficulty of maintaining Nepal’s neutrality amidst Cold War tensions.US Ambassador Henry E Stebbins had met King Mahendra on 9 December in which he was given no hints of what he was planning, even though preparations must have been at an advanced stage. After the coup, Stebbins wrote to President Eisenhower: ‘…we feel that the King’s motives in taking the precipitate action he did were guided less by the issues of corruption and Communism than by a growing fear that his own personal position and prestige were dwindling and that if he did not act soon, it might be too late . . . the real motive behind the move was the preservation of the monarchy and the Shah dynasty in its absolute form.’However, just as Mahendra reckoned, Nepal’s two giant neighbours went along. China’s annexation of Tibet had spooked the Indians and Americans, and the British were focused on continued Gurkha recruitment. In fact, Queen Elizabeth was in Kathmandu on a royal visit within two months of the coup, and even went tiger hunting in Chitwan. History repeats itself repeatedly in Nepal. In 2005, King Gyanendra staged a carbon copy royal-military coup. Like his father and Stebbins, Gyanendra hoodwinked British Ambassador Keith Bloomfield into thinking that a coup was the last thing on his mind. Gyanendra’s speech on 1 February 2005 was identical to Mahendra’s in 1960. The son followed his father’s footsteps. On the 60th anniversary of पुस १ Nepal comes another full circle as supporters of a return to a Hindu monarchy exploit the political disarray, infighting, governance failure and corruption, to march on the streets demanding the secular republican constitution be scrapped. Some of the geopolitical dynamics of the Cold War in 1960 are also playing out again as Washington and New Delhi align against Beijing. Hindutva politics  in India may also be pushing the pendulum back to the right in Nepal. Tune in to Tom Robertson's article on Nepali Times Weekend Longreads on Saturday 12 December with declassified papers with new revelations about the US response to King Mahendra's coup.

Kunda Dixit

‘Putsch Ek’

<img width="675" height="849" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191116/636bee754b0ad905ca02ef48jpeg.jpg" alt=""/>It was a hazy winter afternoon  when without warning at exactly 1PM, soldiers appeared on the streets of Kathmandu. Singha Darbar was cordoned off. Politicians, including Prime Minister B P Koirala who had been elected a year-and-half previously, were picked up simultaneously from their homes or offices, and hauled off to prison.   On Tuesday, 15 December it will be exactly 60 years since that fateful day which would determine the course of Nepal’s history for decades. King Mahendra and Prime Minister BP Koirala met at the palace for dinner a few days before the putsch. The King had just returned from a four-month trip to Japan, the United States and UK, and top secret plans were already in place for the coup d'état. Years later, Koirala related how towards the end of that meal, Mahendra (wearing trademark shades even though it was dark inside the room) gestured to Queen Ratna to leave and told him: “There cannot be two lions in a cage.”BP writes in his memoir that he had a ‘love hate’ relationship with Mahendra, who appreciated his work ethic, but was increasingly jealous of his popularity. The King’s aversion to political parties was well known, zamindars hated BP’s new land reform bill, and Mahendra sensed that Nehru’s India and Mao’s China, for different reasons, could live with a coup, as long as it did not make Nepal unstable.So, on पुस १, २०१७ (first day of the month of Pous 2017) the King made his move. In a speech he accused the Nepali Congress government of “failure to maintain law and order, being anti-national, corrupt and unaccountable”. The Swiss Ambassador was visiting Kathmandu from New Delhi on 15 December, and wrote a long cable to Berne about how BP Koirala had earlier talked about the difficulty of maintaining Nepal’s neutrality amidst Cold War tensions.US Ambassador Henry E Stebbins had met King Mahendra on 9 December in which he was given no hints of what he was planning, even though preparations must have been at an advanced stage. After the coup, Stebbins wrote to President Eisenhower: ‘…we feel that the King’s motives in taking the precipitate action he did were guided less by the issues of corruption and Communism than by a growing fear that his own personal position and prestige were dwindling and that if he did not act soon, it might be too late . . . the real motive behind the move was the preservation of the monarchy and the Shah dynasty in its absolute form.’However, just as Mahendra reckoned, Nepal’s two giant neighbours went along. China’s annexation of Tibet had spooked the Indians and Americans, and the British were focused on continued Gurkha recruitment. In fact, Queen Elizabeth was in Kathmandu on a royal visit within two months of the coup, and even went tiger hunting in Chitwan. History repeats itself repeatedly in Nepal. In 2005, King Gyanendra staged a carbon copy royal-military coup. Like his father and Stebbins, Gyanendra hoodwinked British Ambassador Keith Bloomfield into thinking that a coup was the last thing on his mind. Gyanendra’s speech on 1 February 2005 was identical to Mahendra’s in 1960. The son followed his father’s footsteps. On the 60th anniversary of पुस १ Nepal comes another full circle as supporters of a return to a Hindu monarchy exploit the political disarray, infighting, governance failure and corruption, to march on the streets demanding the secular republican constitution be scrapped. Some of the geopolitical dynamics of the Cold War in 1960 are also playing out again as Washington and New Delhi align against Beijing. Hindutva politics  in India may also be pushing the pendulum back to the right in Nepal. Tune in to Tom Robertson's article on Nepali Times Weekend Longreads on Saturday 12 December with declassified papers with new revelations about the US response to King Mahendra's coup.

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.

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Last Days with BP Koirala

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‘Putsch Ek’

Visit Nepal in the monsoon

Nepal’s bubble economy

Not poor, but not rich

Flouting rules caused Saurya tragedy