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.
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.
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.

Vishad Raj Onta

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Nepal needs to use its money better

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141152/636d02399c7e80680e0a366djpeg.jpg" alt="" width="2154" height="1068"/><figcaption></figcaption></figure>When the coalition government of Prime Minister Sher Bahadur Deuba took office in July, many had hoped it would restore stability after a prolonged political feud. But the alliance has not even been able to complete government formation, nor pass the budget and important legislation on stricter punishment for gender-based violence.Turmoil in Parliament this week, including physical confrontations between members that had to be controlled by marshals, has also meant the budget has not budged, and this has led to a government shutdown from Wednesday — affecting hospital care during the pandemic.Continued opposition by the main opposition UML has meant that besides the budget, critical pieces of ordinance, including one to increase <a href="https://www.nepalitimes.com/opinion/rape-rulings-in-nepal-follow-letter-not-spirit-of-the-law/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/rape-rulings-in-nepal-follow-letter-not-spirit-of-the-law/&amp;source=gmail&amp;ust=1631927850058000&amp;usg=AFQjCNE0uJWaELyu9SdhwI_oKEXopsk9zw">punishment for rape</a> and acid attacks against women have lapsed.“This has bolstered the morale of criminals because it will protect them from punishment,” says Tika Dahal of the Nepal Organisation of Handicapped Women.“It is a crime to threaten victims or buy them off, and the inability to pass these ordinances will mean that fewer women will come forward to lodge complaints,” she adds. There has been a <a href="https://www.nepalitimes.com/latest/in-nepal-lockdown-a-domestic-violence-spike/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/in-nepal-lockdown-a-domestic-violence-spike/&amp;source=gmail&amp;ust=1631927850058000&amp;usg=AFQjCNHWmrd7UmCdVcOO4lA4MaauH1-llg">significant increase in the number of reported rape cases </a>during the Covid-19 pandemic.The ordinances had in the past months brought down the number of rape cases where the perpetrator’s family tried to negotiate a settlement with the victim through intimidation or out-of-court offers of compensation, including getting the rapist to marry the victim.The other ordinance to prevent acid and other corrosive chemical attacks has also lapsed. <a href="https://www.nepalitimes.com/here-now/nepals-acid-attack-survivors-find-a-saviour/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-acid-attack-survivors-find-a-saviour/&amp;source=gmail&amp;ust=1631927850058000&amp;usg=AFQjCNEYcqgMX1pyu7JVUiclIyf5s03nXw">Activist Ujjwal Bikram Thapa</a> who has been helping women victims of acid attacks and lobbying for the legislation says it is a “national shame” that such an important bill has been allowed to lapse.“Preventing acid attacks on women is not a political issue, it was not for or against any political party,” Thapa said. “If the government cannot act on such a sensitive issue, we as a nation have lost our humanity.”The law would have increased the punishment to <a href="https://www.nepalitimes.com/here-now/the-prolonged-trauma-of-acid-attack-survivors/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/the-prolonged-trauma-of-acid-attack-survivors/&amp;source=gmail&amp;ust=1631927850058000&amp;usg=AFQjCNFOv0RqIp7iQqmDasfki-F3Q0FUaA">perpetrators of acid attacks</a> to 20 years jail terms, and Rs1 million in fines. If the victim died, the acid assaulter would have to pay compensation to the family. These laws are now not in effect anymore.Nepal’s Constitution mandates that a law or amendment brought by ordinance must be ratified by Parliament within 60 days of being presented to the House, otherwise it is automatically scrapped. The ordinances had been passed on 18 July and expired on Wednesday.“We had actually started seeing a drop in attempts to reach settlements in which the rape accused used power, muscle and money to avoid punishment,” says gender rights activist Sangita Timsina.Menuka Thapa of the group Rakshya Nepal says that after the ordinance stipulating a three-year jail term for those attempting to settle rapes cases out of court, she had seen a drop in such negotiations.Last year, when a 16-year-old was raped by multiple men in Saptari, local elders offered the victim’s family Rs55,000 if they forgave the perpetrator. When the family took a stand saying it wanted justice, not money, influential men in the village threatened them from filing a police case. The young woman committed suicide.But because the ordinance against out-of-court settlement had been passed, the perpetrators Dharma Mandal, Bishnu Mandal, Ranjit Mandal and Ballu Mandal as well as three elders trying to save them from punishment were detained by police.Similarly, at the other end of the country in Bajhang, a 12-year-old Dalit girl was murdered after rape. The alleged rapist Rajendra Bohra had last year been released from jail after this family paid a mere Rs500 to settle an earlier rape case. If the amendment had been in place, the second crime would not have happened.After a series of such rape settlement cases, the government of Prime Minister K P Oli had President Bidya Devi Bhandari sign an ordinance in November last year to amend the laws on rape and other crimes against women.Pressure to settle rape cases by offering money or threats against the victims or their families would be punishable by up to three years in prison and Rs30,000 fine. In fact, the amendment added another 6 months in jail if the one pressuring the victim is an elected official.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141152/636d023d9c7e80680e0a366ejpeg.jpg" alt="" width="2268" height="1390"><figcaption></figcaption></figure>The parliamentary stalemate has also affected the budget, and from the first of the Nepali month of Ashwin on Friday, the government cannot spend any money which could lead to a shutdown similar to the one that the United States experienced last year after a filibuster in Congress when Donald Trump was president.But while the US has seen such crises before, this is the first time Nepal has had a government shutdown because the House deadlock has meant that the government’s budget ordinance has lapsed.The reason for this state of affairs is that Prime Minister Deuba suspended Parliament when it looked like he could not pass an amendment to the Constitution allowing political parties to split with signatures of just 20% of their parliamentary parties.This was to facilitate Madhav Kumar Nepal to split from the UML to form the CPN (United Socialist) so that he could join the coalition government. K P Oli and the UML is also using his obstruction of the House to exact revenge on the coalition that ousted him.Five-time prime minister Sher Bahadur Deuba does not seem too perturbed. When asked by reporters this week how the government would function without a budget, he replied: “As it has functioned in the past.”Parmeswar Dhungana of the Finance Ministry says the first option is to have Parliament when it meets Monday to ratify the ordinance to split parties, that will unblock the other ordinances. The second option is to pass an emergency payment bill, but even for that the political deadlock between the coalition and the UML in both chambers of the House must end.The third option is to suspend Parliament again and pass and renew all pending bills, amendments and the budget by ordinance.This has happened before. Exactly ten years ago when then UML Finance Minister Surendra Pandey tried to present the budget, the current Maoist Finance Minister Janardan Sharma led a charge on the floor of the House and broke Pandey’s red-ribboned budget briefcase. After that, the UML coalition passed the budget by ordinance.The other collateral damage of the deadlock in Parliament is the US-supported <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/just-do-it/&amp;source=gmail&amp;ust=1631927850058000&amp;usg=AFQjCNF2KbkdVt5RHXp1wruRR1Tu1HOoVQ">Millennium Challenge Corporation (MCC)</a> project to increase the capacity of Nepal’s electricity transmission lines and improve highways. The project is already signed but needs to be ratified by Parliament in 2019, but has also been a victim of extreme politics.

The human cost of Nepal’s political deadlock

<figure><img width="1454" height="889" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121152/636b950a9c7e80680e06f235jpeg.jpg" alt=""/><figcaption></figcaption></figure>About 250 years ago when King Prithivi Narayan Shah made Kathmandu the capital of unified Nepal, he realised that the city had great potential as a business centre, complementing its role as a trading hub. He allowed in businessmen from Rajasthan in India to set up shop and allow entrepreneurship to ferment, a move expanded later by Prime Minister Chandra Shamshere Rana. One reason entrepreneurship did not have deep roots in Nepal was the concept of जागिर, a 10-5 salaried position with job security. That is why the start-up culture took so long to start up and morph in Nepal. The proliferation of, and exposure to the Internet and the recent advent of international private equity firms, accelerators and incubators have paid a pivotal role in making this happen.Since 2017, successive government budgets have mentioned start-ups and allocated money for their establishment, but without clarity and development. This year’s budget was no different: it also set aside Rs1 billion towards building a start-up ecosystem, including concessional loans.  What the previous governments had missed out on, this one seems to have acknowledged: start with defining a start-up. A voluminous document is doing its rounds through the corridors of our bureaucracy for comments from experts. Until they come up with a definition, let us say a start-up is an innovative idea that uses technology to address unmet demand in the market.In the United States, the start-up sector is a $3 trillion business. In South Asia, India leads the pack with over 20,000 Start-ups in operation, of which 100 are unicorns with a combined market cap of $240 billion. Bangladesh, Pakistan and even Afghanistan have understood the importance of this sector to the economy.  Internationally, some 90% of start-ups fail to take off. Nepal has invested in 400 start-ups, all in Kathmandu, and the risk appetite for new investments is limited partly because of the absence of an enabling environment. The cost factor for starting a tech business in Nepal is lower than anywhere else with a constant flow of <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/outdated-laws-limited-ecommerce-hold-back-tech-industry%20,3547" target="_blank" rel="noopener noreferrer">eligible young graduates well versed in English</a> who are relatively computer literate. The bandwidth for connectivity is getting better. It is an untapped market, an imitation of international successes for local markets can be implemented, and the population is young, and growing.There are challenges with the lack of legal and policy environment posing the greatest risk. Ideas are the premise of any start-up. Intellectual Property Right (IPR) is the most important legal recourse for safeguarding those ideas, which in Nepal remains a draft and has been in discussion for quite some time.The current law was formulated in 1964, and does not address developments that have occurred worldwide since then. A lawyer recently remarked that when he tried to register a trademark for poultry feed, the application was denied because a tobacco company had already registered it. Thankfully, the Supreme Court gave a verdict on the Kansai Nerolac case a few years ago, which protected trademarks. Still, laws need to reflect international best practices for this sector to operate. Financing start-ups is also a great hurdle. Banks are reluctant and risk averse to lend without collateral. If a loan is secured it is not nearly enough to meet the requirement and equity is difficult to come by. The ones who have demonstrated that they have the ability to serve a niche market and can show potential to scale up have been successful to secure equity financing.  The start-up industry is evolving despite the lack of an enabling environment.  The resilience shown by these entrepreneurs has steadily improved, and the appetite to invest in them is gaining traction. Examples are <a href="https://www.nepalitimes.com/here-now/three-toots-for-tootle/" target="_blank" rel="noopener noreferrer">ride sharing apps</a> that made the government change its policy, <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener noreferrer">e-commerce platforms</a> that have engaged with the government to facilitate the sector, and companies that realigned business plans to accommodate government policies. A cloud service provider had to create a hybrid model because government officials could not comprehend what it was, and that data could be secure. They needed to see actual physical infrastructure.  But <a href="https://archive.nepalitimes.com/regular-columns/Cross-Cutting/Start-ups-need-staying-power,439" target="_blank" rel="noopener noreferrer">start-ups are resilient</a>, and they will continue to compel the authorities to accommodate them as they continue to grow. They have adapted to the situation and have introduced internal safeguards to secure their ideas in a lax IPR environment.  Some are ensuring strict non-disclosure agreements, developing in-house products knowing that there will be disrupters in the market six months down the road and, focussing on networks as much as focussing on products. The government’s new regulations will hopefully put it in a facilitating role to create a platform for ideation to grow with the help of mentors from academia and the private sector. Nepal’s start-ups are to stay, and with the right legal and regulatory framework in place, will thrive. One day there will be a Nepali unicorn in the making.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/also-keeping-financially-healthy-in-a-lockdown/" target="_blank" rel="noopener noreferrer">Siddhant Pandey</a> is Chairman and CEO of <a style="font-size: 15px; letter-spacing: 0.01em;" href="https://bo2.com.np" target="_blank" rel="noopener noreferrer">Business Oxygen Pvt Ltd (BO2).</a><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121152/636b950d9c7e80680e06f236jpeg.jpg" alt="" width="90" height="109">

Giving start-ups a head start

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b94279c7e80680e06f1e3jpeg.jpg" alt="" width="2540" height="1426"/><figcaption>Richshaw operator Kancha Lama hardly gets one ride a day. He mostly depends on people distributing free food during the lockdown.</figcaption></figure>After two months in which there were new records of cases and fatalities every day, the second wave of the Covid-19 pandemic <a href="https://www.nepalitimes.com/banner/kathmandu-covid-19-lockdown-relaxed/" target="_blank" rel="noopener noreferrer">appears to be cresting in Nepal</a>, but it has left the economy in ruins with a crisis-ridden government offering no hope to citizens.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/we-knew-the-tsunami-was-approaching/" target="_blank" rel="noopener noreferrer">At its peak in mid-May</a>, there were more than 9,000 new infections and up to 250 deaths daily. And that was just the official count, models put the figures at least three times higher. However, the real impact of the pandemic is in the country’s economic meltdown, with more than half the employed losing their jobs.The Covid-induced lockdowns have pushed millions of  Nepalis back below the poverty line, which means they are now <a href="https://www.nepalitimes.com/banner/nepals-epidemic-of-hunger/" target="_blank" rel="noopener noreferrer">unable to access food and water</a>, basic health care and education. This has completely reversed Nepal’s gains in poverty reduction in the past ten years.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b942a9c7e80680e06f1e4jpeg.jpg" alt="" width="225" height="225">Back in March, at the tail end of the first wave, <a href="https://www.nepalitimes.com/latest/covids-collateral-damage/" target="_blank" rel="noopener noreferrer">Himalmedia’s tv magazine Saglo Samaj interviewed</a> farmers, tourist guides, hotel operators and taxi drivers most affected by the lockdowns.This week, the team revisited each of the same people to find out what had become of them. Their stories are a microcosm of a society ravaged by the pandemic, where the poor have got poorer.https://www.youtube.com/watch?v=Yni_6WWbmAo&amp;feature=youtu.beNepalis suffered altogether <a href="https://www.nepalitimes.com/banner/economic-cost-of-5-months-of-nepal-lockdown/" target="_blank" rel="noopener noreferrer">five months of lockdown in 2020</a>, and another nearly two months this year. The restrictions were eased this week, even though the daily number of fatalities and active cases are higher than when the lockdown was imposed on 29 April.The pandemic and the lockdowns have disabled every sector. Some 1.1 million people in the <a href="https://www.nepalitimes.com/latest/nepal-tourism-may-take-5-years-to-recover/" target="_blank" rel="noopener noreferrer">hospitality industry</a> have been directly impacted by the pandemic and more than half of Nepalis lost their jobs in the past month alone.Yet, the government has no clear plans to provide alternative employment opportunities for those who lost their jobs. In fact, it has been too <a href="https://www.nepalitimes.com/banner/court-debates-nepal-pm-olis-future/" target="_blank" rel="noopener noreferrer">preoccupied with a political power struggle for most </a>of the pandemic to plan a real exit strategy. Every response to the crisis has been too little, too late.On Tuesday, even though other districts prepared to relax their lockdown just as Kathmandu did, Nepal saw 4,522 new cases and 41 fatalities. There are a total of 52,648 active infections, 762 of them in ICU and 218 in ventilator support in hospitals across the country.Public health experts are already warning of a possible third wave and urging the government to make preparations for <a href="https://www.nepalitimes.com/latest/nepal-covid-19-impact-worse-than-official-figures/" target="_blank" rel="noopener noreferrer">increased contact tracing</a> and hospital treatment to avoid much devastation.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b942b9c7e80680e06f1e5jpeg.jpg" alt="" width="2552" height="1428"><figcaption> </figcaption></figure>MILKED DRYBuffalo milk is the only source of income for farmers in Kamdi village of Banke district in the western Tarai. But many of the dairy farmers were unable to sell their milk during the lockdowns in 2020. Later, they didn’t get a fair price and the Dairy Development Corporation was slow to pay even what they were owed.“The market is closed, there is barely any feed for the cattle. We are working day and night, but for nothing,” says Malati Prasad Yadav, who has 150 buffalos, but little income since the pandemic.The farmers took loans to buy feed and take care of the buffalos, but the second wave has quashed the little hope they had. They were hoping the government would announce a relief package in this year’s budget. But their hopes were dashed.“We are having to pour the milk into the drains, there are no consumers for ghee or cheese. We are running at a loss and there is no telling how long it will last,” says Saroj Pandey of the SJ Dairy in Nepalganj. “The government should boost the morale of farmers and local businesses, subsidise their electricity or promote Nepali goods by stopping import from the third country.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b942e9c7e80680e06f1e6jpeg.jpg" alt="" width="1500" height="844"><figcaption> </figcaption></figure>TOURISM AND REALISMOne of the hardest-hit sectors is tourism. And while professionals of most fields have had to cope with the challenges brought on by the pandemic, <a href="https://www.nepalitimes.com/latest/where-have-all-the-guides-gone/" target="_blank" rel="noopener noreferrer">tourist guides have been unemployed</a> for more than a year now.Four months ago, tourist guide Shankar Bhattarai had taken up teaching to make a living but was spending all his free time reading up about Nepal’s history and culture to better prepare himself for when the tourists would come back post lockdown. But the second wave killed what was left of <a href="https://www.nepalitimes.com/editorial/survive-revive-thrive/" target="_blank" rel="noopener noreferrer">Nepal’s tourism</a>.He has since given up any hope of normalcy and is constantly worried about debt collectors. Hoping for an alternative for tourists guides like himself, he was further depressed with this year’s budget.“There were provisions only for the big hotels and travel agents, we didn’t find ordinary tour guides like us anywhere in the relief packages,” says Bhattarai, who had been a tourist guide since 2011. “I’ve tried my best to promote Nepal through my work but at our time of need, we have no government support. I now question myself about staying back in Nepal.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b94309c7e80680e06f1e7jpeg.jpg" alt="" width="2537" height="1425"><figcaption> </figcaption></figure>UNSERVICEABLEBig businesses have their own woes. The three-star Airport Hotel in Kathmandu has seen only a handful of guests in more than a year. The hotel’s original staff of 100 is down to 10, and only 10 of its 62 rooms are kept serviceable.“We are doing much worse than last year, we did survive 15 months somehow, there were some domestic tourists, but then the second wave happened and it destroyed what little we had,” says owner Binayak Shah, adding that he has not been able to pay the monthly instalments on its loan for 17 months.He adds: “I have no income, so how can I pay them? This means sooner or later, the bank is going to blacklist me, and put this hotel up for auction.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b94339c7e80680e06f1e8jpeg.jpg" alt="" width="2544" height="1420"><figcaption> </figcaption></figure>DOWN AND OUTWhile some worry about paying millions in bank loans, daily wage labourers worry about the next meal. Kancha Lama has been operating a rickshaw in Kathmandu for 38 years, but his <a href="https://www.nepalitimes.com/banner/pandemic-puts-brake-on-kathmandus-rickshaws/" target="_blank" rel="noopener noreferrer">business is down and out</a>. He hardly gets one ride a day, and mostly depends on people distributing free food.“It’s easy for the government to tell us to stay home and eat healthy, where is the money? It doesn’t even allow me to beg on the streets. At least they should distribute rations for people like us,” says Lama. “If I get Covid, at least I will be out of this misery.”Bir Bahadur Lama is in Asan every day, and if it is his lucky day he will get a client or two to carry loads for them. Otherwise, he sits on the temple steps passing the day with other jobless porters. Before the pandemic, they used to carry loads for Asan’s many shops. Sometimes, good samaritans offer them food, but that is rare.“I just wish I did not have to sleep hungry and lockdown would end soon, that is all I wish for,” he says.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b94379c7e80680e06f1e9jpeg.jpg" alt="" width="2539" height="1430"><figcaption> </figcaption></figure>TAKEN FOR A RIDEDuring the lockdown last year, a bank took possession of Ganesh Tamang’s taxi which he had bought with Rs500,000 out of savings from years of toil in the Gulf.With no other source of income, he is now back to his village and raises livestock. “I often feel like I was born in a wrong country, to a wrong family, and at the wrong time, it wouldn’t have come to this anywhere else,” he says.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b943a9c7e80680e06f1eajpeg.jpg" alt="" width="1500" height="844"><figcaption> </figcaption></figure>Sagar Bohora has a sickly mother at home, and a family of young children dependent on him. But his taxi has broken down because it has not run much for the past year-and-a-half. He needs at least Rs30,000 for repairs, but he has barely enough after paying off the auto loan.“I only ask banks and financial institutions that they give us a few months until after the lockdown so that we can pay our dues, by then we will be able to get up, with or without government help,” says Bohora.<h2>Pandemic makes the poor poorer</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121148/636b943c9c7e80680e06f1ebjpeg.jpg" alt="" width="2538" height="1424"><figcaption> </figcaption></figure>There is empirical evidence that the second pandemic wave has <a href="https://www.nepalitimes.com/latest/nepal-prepares-for-economic-fallout-of-pandemic/" target="_blank" rel="noopener noreferrer">further impoverished Nepal’s poor</a>. Even by modest estimates, some 9 million Nepalis have been pushed back below the poverty line due to Covid-19 induced lockdowns. In this week’s Saglo Samaj tv magazine, Shankar Sharma, former ambassador to the US and vice-chairperson of the National Planning Commission spoke to Kanak Mani Dixit. Excerpts:Kanak Mani Dixit: We went back to people we had interviewed four months ago, and found that their situation had further declined. Do they represent the current Nepali society?Shankar Sharma: They are an accurate representation. There are three categories that have been hit the hardest by the pandemic: the first are <a href="https://www.nepalitimes.com/latest/pandemic-offers-chance-to-revive-farming/" target="_blank" rel="noopener noreferrer">subsistence farmers</a> below the poverty line, this also includes disadvantaged groups. The next are people in the informal sector whose livelihood has been endangered with the extended closure of the market. Then there is the hospitality industry and unlike others, they haven’t been able to pick up after the first wave because the impact of the lockdown on the <a href="https://www.nepalitimes.com/banner/tourism-that-treads-lightly-on-the-land/" target="_blank" rel="noopener noreferrer">travel industry</a> is long-term. These businesses had loans and now their debt has accumulated.These impacts are directly reflected in our macroeconomic numbers. Economic growth rate last year was 2% and this year it won’t be more than 1%. Similarly, the World Bank estimates following the pandemic there are now a total 9 million people in Nepal below the poverty line.Would you say that because it is not monetised rural subsistence living is faring better?Back during the Maoist insurgency, some development partners had conducted a study about people who had migrated to the cities due to the violence. They asked people if they would go back to the village once the peace accord was signed, 93% of the respondents said no.One of the main reasons behind this was <a href="https://www.nepalitimes.com/editorial/back-to-the-future-of-farming/" target="_blank" rel="noopener noreferrer">Nepal’s agriculture</a> couldn’t compete with Indian and Chinese produce. This also led to more people migrating abroad. Experts have suggested the concept of contract farming, which is also included in this year’s budget and will do well for the country.But one of our biggest problems is our <a href="https://www.nepalitimes.com/banner/nepals-fake-poor/" target="_blank" rel="noopener noreferrer">inability to identify the poor</a>. The government has developed ID cards for their identification, but 23% of the poor are not on the list but 25% are those who have listed themselves in hopes of getting some relief. As a result, the real poor have been deprived even of their social security fund.What should we do to boost their morale and of the country?The affected people are those in rural Nepal but they also have an advantage of three levels of government. But it is still the responsibility of the central government to provide relief worth at least two months at $1 per day for its people. Unfortunately, there is no mention of this in the budget this year.The Nepal government has also allocated a total of Rs50 billion for training in the last two budgets but hasn’t been able to spend that money. This fund should be used in skill development for Nepalis post lockdown, effective spending of the budget is a must. Similarly, the government should support cottage and small industries so that they don’t close down. If we lack funding, we could use loans and grants we have received from international development partners.Despite the pandemic, there is still talk about Nepal graduating from Least Developed Country (LDC) status to a middle-income country. What will happen now?Following the pandemic, the United Nations has set a new deadline for the LDCs to graduate to lower-middle-income and middle-income countries. The good news is that we have made some progress in our per capita income, and the fact that our economy is now dependent on multiple factors is a positive sign. But what is worrying is that our economic growth is still lower than the average growth of underdeveloped countries. This means we will have to work more on increasing our living standard.It is said that Nepal is not a poor country, but the government just cannot seem to spend its development budget. If they were held more to account by civil society and media during this pandemic that might help? I think that is an appropriate conclusion to make. The government will always play the lead role, but it is important to highlight the importance of civil society and journalists in creating awareness about various programs at the local level such as the <a href="https://www.nepalitimes.com/banner/missing-the-plot-in-nepals-job-scheme/" target="_blank" rel="noopener noreferrer">Prime Minister’s Employment Scheme</a>, which goes a long way in rejuvenating elected representatives in villages and towns.

The real cost of Nepal’s second wave

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b914f9c7e80680e06f0dejpeg.jpg" alt="" width="1333" height="1000"/><figcaption>Photo: THE STAR/THE PANGOLIN REPORTS</figcaption></figure>Over 172 million infections and nearly 4 million lives later, the exact origin of the Covid-19 pandemic is still a matter of debate. But scientists have a pretty good guess.Early studies pointed to bats as the source of the <a href="https://www.nepalitimes.com/banner/why-nepal-must-watch-about-coronavirus-but-not-panic/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/why-nepal-must-watch-about-coronavirus-but-not-panic/&amp;source=gmail&amp;ust=1622851284763000&amp;usg=AFQjCNEHJ6TOsHS0_g69zkioRcZxJDNFig">2019 novel coronavirus</a> and epidemiologists say the virus could have jumped to an <a href="https://www.nepalitimes.com/banner/protecting-pangolins-in-the-pandemic/" target="_blank" rel="noopener noreferrer">intermediary species like the pangolin</a>, which is a delicacy in certain parts of China, and on to humans.There is now a better understanding of how the rise of zoonotic diseases is associated with the destruction of nature and the flourishing illegal wildlife trade. This could be how the cross-species transmission of SARS-CoV-2 took place in late 2019, but there is little political will to stop the destruction of nature.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91529c7e80680e06f0dfjpeg.jpg" alt="" width="535" height="279">“There will always be a risk of pandemics as long as there is demand for bush meat and the destruction of biodiversity,” says <a href="https://www.nepalitimes.com/latest/the-day-of-pangolins/" target="_blank" rel="noopener noreferrer">Tulshi Laxmi Suwal</a> of Nepal’s Small Mammal Conservation and Research Foundation who has been involved in pangolin research.Scientists are still debating the natural origin hypothesis for the emergence of SARS-CoV-2 in late 2019 in Wuhan, but the absence of an intermediary host and lack of a chain of mutations in the SARS-2 is shifting attention to the lab-leak theory once again.Whatever the root cause, this is not the first pandemic and it will not be the last if the <a href="https://www.nepalitimes.com/banner/between-existence-and-extinction-in-nepal/" target="_blank" rel="noopener noreferrer">planet’s current rate of biodiversity loss</a> continues. The link between the destruction of nature and the rise of new infectious diseases is now recognised, a trend exacerbated by the climate crisis.“The coronavirus pandemic is a much-needed wake-up call but people have short-term memory, they will soon forget the connection to habitat destruction,” says environmentalist Kumar Paudel of the Greenhood Nepal. “Politicians can’t keep destroying the ecology for the sake of economic growth.”Indeed, Finance Minister Bishnu Paudel’s <a href="https://www.nepalitimes.com/latest/new-nepal-budget-sparks-electric-comeback/" target="_blank" rel="noopener noreferrer">new budget</a> announced this week places emphasis on infrastructure and development at the expense of nature preservation. It will allow further plunder of the fragile Chure Hills for quarrying to reduce the $10 billion trade deficit with India.This tendency has seeped down to local governments which are building poorly-designed roads, view towers and concrete monuments at breakneck speed.New highways, irrigation canals, transmission lines and now new rail tracks are <a href="https://www.nepalitimes.com/banner/in-conservation-nepal-is-not-out-of-the-woods-yet/" target="_blank" rel="noopener noreferrer">slicing through national parks</a>.The most serious destruction is of the last tract of native forests in the eastern Tarai for the construction of the <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/" target="_blank" rel="noopener noreferrer">mammoth Nijgad project</a> for which Paudel set allocated money for infrastructure, international investor selection, land acquisition and site clearing.On the occasion of World Environment Day on 5 June, nine of Nepal’s development partners <a href="https://www.nepalitimes.com/latest/importance-of-ecosystems-for-people-and-the-planet/" target="_blank" rel="noopener noreferrer">issued a statement cautioning the government</a> about the project.‘It is important to ensure that decisions ... for large projects such as Nijgad Airport, are based on sound economic, financial, climate, environmental and social impact analyses in line with Nepal’s established economic, environmental and social regulations, as well as climate and other commitments,’ the statement reads.It is signed by the embassies of Australia, Britain, EU, Finland, France, Germany in Nepal as well as the Kathmandu offices of the Asian Development Bank, United Nations and World Bank in Nepal.With the monsoon approaching, there is the threat of a repeat of last year’s deadly flash floods and landslides triggered by haphazard construction of roads and embankments. These are not ‘natural disasters’ but the result of <a href="https://www.nepalitimes.com/here-now/dont-just-blame-god-for-floods-and-landslides/" target="_blank" rel="noopener noreferrer">bad engineering and unsustainable exploitation of nature</a>.“Covering everything with concrete is not development, and our development model is suicidal, the coronavirus pandemic is just the latest example of this,” explains naturalist Tirtha Bahadur Shrestha. “Even urban life needs to be integrated with natural elements like water bodies, trees, groundwater recharge.”Conservation need not be anti-development. Green policies actually boost the economy: in Nepal protecting charismatic big mammals promoted ecotourism and created jobs, <a href="https://www.nepalitimes.com/banner/tree-mendous/" target="_blank" rel="noopener noreferrer">community forests</a> yielded ecosystem services by augmenting ground water recharge, a shift to renewable energy can reduce petroleum import.Switching to <a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/" target="_blank" rel="noopener noreferrer">electric public transport and battery vehicles</a> to reduce the petroleum import bill by just 10% would save Nepal Rs21 billion a year – besides promoting domestic clean energy from hydropower, and improving air quality.“We need to link conservation with economy to drive the change, nature-friendly policies and conservation education must be at the forefront,” adds Shrestha.Yet, Nepal’s current economic model threatens the conservation successes that have earned the country international praise. By allowing logging in community forests, building dams in national parks, clearing vast tracts of forests to build <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/" target="_blank" rel="noopener noreferrer">Nijgad airport</a>, and destroying rivers through sand mining will undo decades of achievement.The theme of this World Environment Day on 5 June is ‘Ecosystem Restoration’, and despite lip service Nepal’s government is too distracted by politics to act on this motto.Warns Kumar Paudel: “If we do not change our ways, many more health and environmental crises await us in the near future.”

Sonia Awale

The nature of pandemics

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131144/636cf22b9c7e80680e09d8edjpeg.jpg" alt="" width="1333" height="1000"/><figcaption>Photo: THE STAR/THE PANGOLIN REPORTS</figcaption></figure>Over 172 million infections and nearly 4 million lives later, the exact origin of the Covid-19 pandemic is still a matter of debate. But scientists have a pretty good guess.Early studies pointed to bats as the source of the <a href="https://www.nepalitimes.com/banner/why-nepal-must-watch-about-coronavirus-but-not-panic/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/why-nepal-must-watch-about-coronavirus-but-not-panic/&amp;source=gmail&amp;ust=1622851284763000&amp;usg=AFQjCNEHJ6TOsHS0_g69zkioRcZxJDNFig">2019 novel coronavirus</a> and epidemiologists say the virus could have jumped to an <a href="https://www.nepalitimes.com/banner/protecting-pangolins-in-the-pandemic/" target="_blank" rel="noopener noreferrer">intermediary species like the pangolin</a>, which is a delicacy in certain parts of China, and on to humans.There is now a better understanding of how the rise of zoonotic diseases is associated with the destruction of nature and the flourishing illegal wildlife trade. This could be how the cross-species transmission of SARS-CoV-2 took place in late 2019, but there is little political will to stop the destruction of nature.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131144/636cf22e9c7e80680e09d8eejpeg.jpg" alt="" width="535" height="279">“There will always be a risk of pandemics as long as there is demand for bush meat and the destruction of biodiversity,” says <a href="https://www.nepalitimes.com/latest/the-day-of-pangolins/" target="_blank" rel="noopener noreferrer">Tulshi Laxmi Suwal</a> of Nepal’s Small Mammal Conservation and Research Foundation who has been involved in pangolin research.Scientists are still debating the natural origin hypothesis for the emergence of SARS-CoV-2 in late 2019 in Wuhan, but the absence of an intermediary host and lack of a chain of mutations in the SARS-2 is shifting attention to the lab-leak theory once again.Whatever the root cause, this is not the first pandemic and it will not be the last if the <a href="https://www.nepalitimes.com/banner/between-existence-and-extinction-in-nepal/" target="_blank" rel="noopener noreferrer">planet’s current rate of biodiversity loss</a> continues. The link between the destruction of nature and the rise of new infectious diseases is now recognised, a trend exacerbated by the climate crisis.“The coronavirus pandemic is a much-needed wake-up call but people have short-term memory, they will soon forget the connection to habitat destruction,” says environmentalist Kumar Paudel of the Greenhood Nepal. “Politicians can’t keep destroying the ecology for the sake of economic growth.”Indeed, Finance Minister Bishnu Paudel’s <a href="https://www.nepalitimes.com/latest/new-nepal-budget-sparks-electric-comeback/" target="_blank" rel="noopener noreferrer">new budget</a> announced this week places emphasis on infrastructure and development at the expense of nature preservation. It will allow further plunder of the fragile Chure Hills for quarrying to reduce the $10 billion trade deficit with India.This tendency has seeped down to local governments which are building poorly-designed roads, view towers and concrete monuments at breakneck speed.New highways, irrigation canals, transmission lines and now new rail tracks are <a href="https://www.nepalitimes.com/banner/in-conservation-nepal-is-not-out-of-the-woods-yet/" target="_blank" rel="noopener noreferrer">slicing through national parks</a>.The most serious destruction is of the last tract of native forests in the eastern Tarai for the construction of the <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/" target="_blank" rel="noopener noreferrer">mammoth Nijgad project</a> for which Paudel set allocated money for infrastructure, international investor selection, land acquisition and site clearing.On the occasion of World Environment Day on 5 June, nine of Nepal’s development partners <a href="https://www.nepalitimes.com/latest/importance-of-ecosystems-for-people-and-the-planet/" target="_blank" rel="noopener noreferrer">issued a statement cautioning the government</a> about the project.‘It is important to ensure that decisions ... for large projects such as Nijgad Airport, are based on sound economic, financial, climate, environmental and social impact analyses in line with Nepal’s established economic, environmental and social regulations, as well as climate and other commitments,’ the statement reads.It is signed by the embassies of Australia, Britain, EU, Finland, France, Germany in Nepal as well as the Kathmandu offices of the Asian Development Bank, United Nations and World Bank in Nepal.With the monsoon approaching, there is the threat of a repeat of last year’s deadly flash floods and landslides triggered by haphazard construction of roads and embankments. These are not ‘natural disasters’ but the result of <a href="https://www.nepalitimes.com/here-now/dont-just-blame-god-for-floods-and-landslides/" target="_blank" rel="noopener noreferrer">bad engineering and unsustainable exploitation of nature</a>.“Covering everything with concrete is not development, and our development model is suicidal, the coronavirus pandemic is just the latest example of this,” explains naturalist Tirtha Bahadur Shrestha. “Even urban life needs to be integrated with natural elements like water bodies, trees, groundwater recharge.”Conservation need not be anti-development. Green policies actually boost the economy: in Nepal protecting charismatic big mammals promoted ecotourism and created jobs, <a href="https://www.nepalitimes.com/banner/tree-mendous/" target="_blank" rel="noopener noreferrer">community forests</a> yielded ecosystem services by augmenting ground water recharge, a shift to renewable energy can reduce petroleum import.Switching to <a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/" target="_blank" rel="noopener noreferrer">electric public transport and battery vehicles</a> to reduce the petroleum import bill by just 10% would save Nepal Rs21 billion a year – besides promoting domestic clean energy from hydropower, and improving air quality.“We need to link conservation with economy to drive the change, nature-friendly policies and conservation education must be at the forefront,” adds Shrestha.Yet, Nepal’s current economic model threatens the conservation successes that have earned the country international praise. By allowing logging in community forests, building dams in national parks, clearing vast tracts of forests to build <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/" target="_blank" rel="noopener noreferrer">Nijgad airport</a>, and destroying rivers through sand mining will undo decades of achievement.The theme of this World Environment Day on 5 June is ‘Ecosystem Restoration’, and despite lip service Nepal’s government is too distracted by politics to act on this motto.Warns Kumar Paudel: “If we do not change our ways, many more health and environmental crises await us in the near future.”

<img width="640" height="371" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111152/636b86e29c7e80680e06787bjpeg.jpg" alt=""/>Widely criticised for its hefty tax on battery-powered vehicles in last year’s budget, Prime Minister Oli’s government under a new finance minister has backtracked to scrap the controversial tax hikes on e-vehicle imports.Last year, Finance Minister Yubaraj Khatiwada slapped excise duties on e-vehicles of 30-80% depending on their capacity, and levied customs duty of 60%. He justified it saying electric SUVs were luxury items, and the government needed to augment revenue to fight the Covid-19 pandemic.The move priced e-vehicles out of the market at a time when sales had just started to pick up, and various brands of electric vehicles were gaining popularity because of their expanded range. But Khatiwada’s move  spiked prices of electric vehicles by 120-140%, making them less competitive vis-a-vis fossil-fuel alternatives.  The government’s move appears to be geared to reducing the import of petroleum import bill, and also to increase electricity consumption as Nepal’s new hydropower plants come online this year, giving an energy surplus. Saturday’s new budget presented by Finance Minister Bishnu Paudel has completely repealed excise duties on e-vehicle imports while cutting customs duties down to the earlier 10%. This takes the tax formula back to 2016 when cuts in excise and customs duty had made battery-operated vehicles gain popularity.Paudel also announced that renewal and road taxes will be waived for five years if an existing petroleum vehicles switches to battery power.The new policies are based on Nepal’s ambitious plan to phase out petrol-diesel vehicles with e-vehicles by 2031, especially as lockdowns increase public consciousness on Nepal’s growing air pollution problem caused mainly by vehicular emissions.Analysts say that the government had no choice because most countries that Nepal imports cars from, including India and China have announced phaseouts of new petroleum vehicles in the next decade. Following the budget announcement, Nepal Electricity Authority (NEA) signed a contract with Chinese firm Wanwang Digital Energy Corporation for the installation and maintenance of 50 e-vehicle charging ports across Nepal. The finance minister’s budget speech also announces tax cuts on electric consumer goods and home appliances, including induction stoves, rice cookers and electric kettles. The excise on those items have been removed and the customs duty has been slashed to only 1%.With the Upper Tamakosi’s 456MW soon being hooked to the grid, and another 800MW are expected to be added from new hydropower plants on the Bhote Kosi and other rivers. The NEA has already made Power Purchase Agreements (PPA) to buy about 6,000MW of electricity from private operators, but a lot of this will depend on the commissioning of transmission lines under the <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/&amp;source=gmail&amp;ust=1622449784871000&amp;usg=AFQjCNER1b-E4jV_wM6LmsXEHmhipEELsQ">Millennium Challenge Corporation (MCC) project</a>.The budget also had other environment-friendly policies like a ban on the manufacture, distribution and use of plastic bags thinner than 40 microns. The government will also subsidise plastic industries to upgrade machinery so they do not have to produce thin plastic bags that cannot be recycled.The budget has slashed taxes on agricultural equipment to promote farm mechanisation. It also announced tax breaks for those donating for Covid-19 charities, as well as reduced taxes on medical equipment used for treatment during the pandemic. Industries investing in new oxygen plants will get a 50% subsidy from the government, while existing factories will get a 50% discount on their electricity bills.In order to boost post-Covid tourism revival, the government has decided to scrap visa fees for visitors to Nepal. Chinese and SAARC nationals already had free visas, now visitors from other countries will also not have to pay $30 for 15 day visas. The budget has also slashed the tax that hotels, travel agencies and other tourism-related service industries have to pay.Buoyed by remittances from Nepalis abroad which has defied predictions by actually increasing by 16.5% this year, Finance Minister Paudel predicted a 6.5% economic growth in the coming fiscal year despite the pandemic.

New Nepal budget sparks electric comeback

<img width="640" height="371" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131128/636ceee89c7e80680e09ae58jpeg.jpg" alt=""/>Widely criticised for its hefty tax on battery-powered vehicles in last year’s budget, Prime Minister Oli’s government under a new finance minister has backtracked to scrap the controversial tax hikes on e-vehicle imports.Last year, Finance Minister Yubaraj Khatiwada slapped excise duties on e-vehicles of 30-80% depending on their capacity, and levied customs duty of 60%. He justified it saying electric SUVs were luxury items, and the government needed to augment revenue to fight the Covid-19 pandemic.The move priced e-vehicles out of the market at a time when sales had just started to pick up, and various brands of electric vehicles were gaining popularity because of their expanded range. But Khatiwada’s move  spiked prices of electric vehicles by 120-140%, making them less competitive vis-a-vis fossil-fuel alternatives.  The government’s move appears to be geared to reducing the import of petroleum import bill, and also to increase electricity consumption as Nepal’s new hydropower plants come online this year, giving an energy surplus. Saturday’s new budget presented by Finance Minister Bishnu Paudel has completely repealed excise duties on e-vehicle imports while cutting customs duties down to the earlier 10%. This takes the tax formula back to 2016 when cuts in excise and customs duty had made battery-operated vehicles gain popularity.Paudel also announced that renewal and road taxes will be waived for five years if an existing petroleum vehicles switches to battery power.The new policies are based on Nepal’s ambitious plan to phase out petrol-diesel vehicles with e-vehicles by 2031, especially as lockdowns increase public consciousness on Nepal’s growing air pollution problem caused mainly by vehicular emissions.Analysts say that the government had no choice because most countries that Nepal imports cars from, including India and China have announced phaseouts of new petroleum vehicles in the next decade. Following the budget announcement, Nepal Electricity Authority (NEA) signed a contract with Chinese firm Wanwang Digital Energy Corporation for the installation and maintenance of 50 e-vehicle charging ports across Nepal. The finance minister’s budget speech also announces tax cuts on electric consumer goods and home appliances, including induction stoves, rice cookers and electric kettles. The excise on those items have been removed and the customs duty has been slashed to only 1%.With the Upper Tamakosi’s 456MW soon being hooked to the grid, and another 800MW are expected to be added from new hydropower plants on the Bhote Kosi and other rivers. The NEA has already made Power Purchase Agreements (PPA) to buy about 6,000MW of electricity from private operators, but a lot of this will depend on the commissioning of transmission lines under the <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/&amp;source=gmail&amp;ust=1622449784871000&amp;usg=AFQjCNER1b-E4jV_wM6LmsXEHmhipEELsQ">Millennium Challenge Corporation (MCC) project</a>.The budget also had other environment-friendly policies like a ban on the manufacture, distribution and use of plastic bags thinner than 40 microns. The government will also subsidise plastic industries to upgrade machinery so they do not have to produce thin plastic bags that cannot be recycled.The budget has slashed taxes on agricultural equipment to promote farm mechanisation. It also announced tax breaks for those donating for Covid-19 charities, as well as reduced taxes on medical equipment used for treatment during the pandemic. Industries investing in new oxygen plants will get a 50% subsidy from the government, while existing factories will get a 50% discount on their electricity bills.In order to boost post-Covid tourism revival, the government has decided to scrap visa fees for visitors to Nepal. Chinese and SAARC nationals already had free visas, now visitors from other countries will also not have to pay $30 for 15 day visas. The budget has also slashed the tax that hotels, travel agencies and other tourism-related service industries have to pay.Buoyed by remittances from Nepalis abroad which has defied predictions by actually increasing by 16.5% this year, Finance Minister Paudel predicted a 6.5% economic growth in the coming fiscal year despite the pandemic.

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636ccd149c7e80680e08bc58jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Prime Minister K P Oli visited Singha Darbar in nearly a year when he inaugurated the earthquake-damaged secretariat building on 15 February. Most of his Cabinet colleagues are also AWOL, and busy planning pro-Oli political rallies.</figcaption></figure>When Prime Minister K P Oli set foot in <a href="https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/" target="_blank" rel="noopener noreferrer">Singha Darbar</a> on 15 February to inaugurate the Cabinet office rebuilt after the earthquake, it had been nearly a year since he had been to the seat of government.In the courtyard of the palace first <a href="https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/" target="_blank" rel="noopener noreferrer">built by Chandra Shumshere Rana 100 years ago</a>, he gave a two-hour speech highlighting his government’s achievements. Then he quickly drove back to his residence in Baluwatar.Ostensibly, the prime minister stopped working out of his secretariat at Singha Darbar because his second <a href="https://www.nepalitimes.com/latest/prime-ministers-health-condition-under-wraps/" target="_blank" rel="noopener noreferrer">kidney transplant</a> in March 2020 made him vulnerable to coronavirus infection.He did visit Singha Darbar briefly in April last year when he addressed the Non-Aligned Movement Conference from the Action Room of his office.But ever since he <a href="https://www.nepalitimes.com/latest/i-had-no-other-option-pm-oli/" target="_blank" rel="noopener noreferrer">dissolved the Lower House</a> on 20 December and announced snap polls for April and May, Prime Minister Oli has been behaving as if he is on the <a href="https://www.nepalitimes.com/latest/a-kathmandu-spring/" target="_blank" rel="noopener noreferrer">election campaign trail</a>. His public appearances have been limited to addressing street rallies, where he has lashed out at estranged Nepali Communist Party (NCP) co-chair Pushpa Kamal Dahal.It is not just the prime minister who is AWOL from Singha Darbar. His Cabinet ministers also seem busy moonlighting. Finance Minister Bishnu Poudel, Minister of Industry Lekhraj Bhatta, Energy Minister Top Bahadur Rayamajhi, Education Minister Krishna Gopal Shrestha, and Law Minister Lilanath Shrestha have all been busy with <a href="https://www.nepalitimes.com/latest/muscle-vs-muscle-in-nepal/" target="_blank" rel="noopener noreferrer">firefighting within the NCP</a>’s instead of attending to the country’s problems.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636ccd189c7e80680e08bc59jpeg.jpg" alt="" width="1500" height="875"><figcaption></figcaption></figure>A secretary at Singha Darbar admitted to Nepali Times that ministers are rarely available for meetings at their ministries because they are too busy defending Oli from his <a href="https://www.nepalitimes.com/banner/oli-vs-dahal-1-upmanship/" target="_blank" rel="noopener noreferrer">rivals in the NCP</a>.“Prioritising internal party matters and a lack of government accountability poses a serious challenge to effective and impactful governance,” says former government secretary Khemraj Nepal.The half-yearly review of the current budget released by the Ministry of Finance last week shows that only 14% of the capital expenditure allocated by the government for development (Rs50.8 billion out of Rs353 billion) had been spent as of December. This is less than what was spent during the first six months of the previous year.Most development projects have also not met their spending targets. Figures show only Rs14 billion out of the Rs92 billion allocated to speed up the construction of 25 infrastructure projects had been utilised. Indeed, the Action Room set up at the Prime Minister's Office in Singha Darbar to accelerate national pride projects has not seen much action in Oli’s absence.This means an economy already stagnant due to the pandemic is <a href="https://www.nepalitimes.com/latest/instability-to-cost-nepal-dear-in-2021/" target="_blank" rel="noopener noreferrer">lagging behind in recovery</a> because development projects are languishing due to government indifference.Oli had pledged Rs300 million from government coffers to add a golden सुनको जलहरी pendant at Pashupatinath during his controversial visit to the temple in January. His decision, an impulsive response to the request by the Pashupati Area Development Fund, was made without prior discussion with advisers.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636ccd1c9c7e80680e08bc5ajpeg.jpg" alt="" width="1500" height="1000"><figcaption></figcaption></figure>This is perhaps one of the few activities of the government that is actually being fast-tracked so the inner sanctum of the temple has the expensive gold pendant in time for <a href="https://www.nepalitimes.com/banner/maha-shivaratri/" target="_blank" rel="noopener noreferrer">Shivaratri</a> on 11 March.Pashupati was not the first time Oli dropped a surprise. A former secretary says the prime minister’s habit of making ad hoc spur of the moment decisions from Baluwatar without consulting experts is wasteful. Only Oli’s adviser and confidante Bishnu Rimal is said to have the prime minister’s ear on most matters.Giriraj Mani Pokhrel, a former minister in the Oli administration, recalls many such impulsive decisions at Cabinet meetings that went against the government’s own strategy.Even former Finance Minister Yuvraj Khatiwada, a workaholic who prefers to keep strict office hours, has criticised the ‘out-of-office’ culture of the prime minister and his Cabinet colleagues.Another senior government official told Nepali Times said the state machinery was in complete disarray due to the prime minister’s <a href="https://www.nepalitimes.com/latest/zero-sum-game-for-nepals-ruling-communists/" target="_blank" rel="noopener noreferrer">lackadaisical attitude towards governance</a>. Not only has Oli been out of touch with his ministers, but the ministers are also not discussing important issues with their secretaries, thus disrupting the entire chain of communication within Singha Darbar."Because the PMO in Baluwatar functions as a parallel seat of government, morale is very low in Singha Darbar,” the official says.Former Finance Secretary Shantaraj Subedi says ministers have the responsibility of carrying through the government’s programs, managing the budget and making policy decisions. "If the minister does not show up, and does not take his work seriously, there will be no result,” Subedi says.Most ministers these days do not even bother to come to Singha Darbar. They either work from their residences, or are attending <a href="https://www.nepalitimes.com/latest/back-in-the-streets/" target="_blank" rel="noopener noreferrer">political rallies</a> in support of the prime minister, or planning them with their cronies.

Nepal's empty corridors of power

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022112911110/6385d8539c7e80680e0cc75djpeg.jpg" alt="" width="1336" height="806"/><figcaption>Illustration: Bhanu Bhattarai</figcaption></figure>Albert Einstein is attributed for defining insanity as repeating the same process again and again, but expecting a different result. By this logic, we human beings are stark raving bonkers. But excelling even more on Einstein’s madness scale would be us Nepalis.<a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/">President Bidya Devi Bhandari</a> recently recited a two-and-half hour long speech about the government’s plans and policies. In parliamentary systems, this is just a formality. But Finance Minister Yubaraj Khatiwada proceeded to deliver his <a href="https://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/">budget speech</a> from the same podium that completely contradicted what she had laid out a few days previously.As usual, the budget speech is a cut-and-paste job that repeated ad nauseum a wish list that has been repeated ad nauseum before.  Wonder if the same person has been writing the speech for decades, with minor edits to suit the political masters of the day.The budget cannot just be a menu followed by ad-hoc allocations and some vague source of revenue. It needs to give the people a clear direction – especially at time when it is clearly headed to the edge of the coronavirus precipice.Traditional wisdom says that if you want to make God laugh, tell him/her/it that you have A Plan. Nepal always seems to have a plan for every situation. The only problem with these plans is that they never get implemented.Some donor-funded projects do get some work done because the agencies doling out the money are accountable to tax payers back home. But even here, Nepalis have to watch from the sidelines because the way contracts are awarded and the method with which the government, its development partners and lenders procure services, is opaque and restricted.One of the goals is ‘capacity building’. It always has been. The hidden costs of doing business in Nepal is on the rise, and unless you have an inside track nothing moves. No wonder the poor always end up paying more for almost everything.So, chocolate is going to be cheaper and electric <a href="https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/">vehicles are going to be more expensive.</a> That is what the average person on the street has concluded about the budget. Nepal will generate 1,300MW more power this year, doubling its generation capacity.But the <a href="https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/">Finance Minister does not want to create a market for surplus power</a> by encouraging electric vehicles. Everyone gets it. A senior government official says  government drivers, administrators, and accountants will never allow us to replace diesel and petrol vehicles because they still have not figured out how to pilfer from electric vehicles. Once this problem is solved, you can be sure electric vehicles will become a normal part of our life.So we will have plenty of cheap chocolate, a lush new carpet at the presidential palace, and cabinet ministers who look really fit because they are getting a new gym. Now that foreign hospitals and treatment are not an option due to the lockdown, it makes perfect sense. Someone has also figured out that Nepal’s donors will pay for almost anything in the wish list, but a carpet and gym maybe a bit of a push. We know how to work these systems.Many thinkers and writers have taught us that the problem with the present application of capitalism is that all the profit goes into private pockets or bank accounts, but all the costs and risks are ultimately socialised. No one can tell us where and how our politicians became so good at condemning capitalism, but they do not quite seem to get the idea for the need to replace imported fossil fuels, which are paid for by precious foreign currency earned by our young migrant workers.They do not seem to get the link between the cost of imported vehicles, imported fossil fuel, declining jobs in foreign lands, numerous Indian blockades and <a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/">air pollution that makes all of us vulnerable to COVID-19</a> which seems to prefer to attack the respiratory system. Then there is climate change, but that was dealt with on <a href="https://www.nepalitimes.com/banner/build-back-greener/">World Environment D</a>ay. The budget should be the platform that establishes these linkages.COVID-19 has demonstrated that our vulnerability depends on our health and also our wealth. Many rich people do not work in the essentials services sector, have health insurance and access to the best services. The poor, who should be more concerned, demand an end to the lockdown and the need to go back to the old normal that was, all said and done, working in their favour. Change is easy to demand but very difficult to implement.The poor, who have neither health nor wealth, get sick, die and leave their families poorer than before. Breaking this vicious cycle is what the budget needed to address. It is this systemic poverty that keeps many politicians in power.The poor become the vote bank, and the poverty card is played every four to five years to get into positions of power. The budget making process forgets who and how they got into power in the first place.Anil Chitrakar is President of <a href="http://www.siddharthinc.com/">Siddhartinc</a> and this is his fortnightly column ½ Full in Nepali Times.

Anil Chitrakar

Nepal at the edge of the COVID-19 precipice

New and old, businessmen and former diplomats, engineers and academics — they have all been trooping to the Election Commission to register political parties ahead of the Sunday deadline.
Till press time Thursday, five new parties had been registered and 21 new parties were in the process of applying. Behind the scenes, new parties are head-hunting, well-known figures are shopping for parties to join, while older parties are splitting or uniting to form new united parties.
“It is reason for optimism that people are enthused to form new parties,” notes political analyst Indra Adhikari. But, she adds, this does not mean that despite the celebrity status they will win votes and succeed in politics.
The outlier in all this are the Nepali Congress (NC) and the UML, which are still licking the wounds after being swept out of power by the GenZ protests in September. Neither are too keen on elections because of the prospect of losing badly.
Former prime minister K P Oli is the most recalcitrant, and seems to want to scuttle elections so Parliament will be reinstated. After announcing that he was stepping down, the NC’s Sher Bahadur Deuba has had a change of heart in Singapore and is gunning to restore Parliament.
Neither party and their leaders have shown any remorse for the 8 September massacre, or understood the outrage on the streets against their decades-long incompetence and corruption. &nbsp;
Among those registering parties are various GenZ youth groups and family members of those killed during the September protests. Notable among the new parties certified this week was Gatishil Loktantrik Party (गतिलो) backed by Buddha Air founder Birendra Basnet and led by sociologist Dinesh Prasai. Dharan Mayor Harka Sampang’s Shram Sanskriti Party is also registered.
Energy and Infrastructure Minister in the interim government Kulman Ghising has backed the Ujyalo Nepal with former secretary Anup Kumar Upadhyaya as its chair. Ghising has been playing coy about his political ambitions, and is planning to resign from his cabinet post before elections.&nbsp;
Ghising had been talking to Rabi Lamichhane’s RSP about joining, but that negotiation failed. Former RSP lawmaker Sumana Shrestha was supposed to join Ghising, but pulled out following Ghising’s reluctance to resign from government.
Ghising has much public support because he is credited with ending power cuts as head of the Nepal Electricity Authority, but is now getting flak for being unwilling to give up his ministerial portfolios while still wanting to contest elections. &nbsp;
Ujyalo has hit other snags. GenZ activist Tashi Lhazom, who was considered for a Cabinet position last month but was dropped by Prime Minister Sushila Karki, has said she is not in Ujyalo despite being listed as a Central Committee member. Another member has said that he will not be a part of Ujyalo due its “a lack of political culture”.
Even though Nepalis from across backgrounds and professions are eager to participate in the country’s new political landscape, there are doubts about the structure of their parties, ideology and electoral platforms.&nbsp;
Hurriedly set up parties without a shared philosophy have less chance of political influence and longevity. For example, the RSP was formed just months before the 2022 polls to become the fourth-largest party in Parliament, has lost its momentum, and its leader is in jail.
“Parties like the RSP, which did some positive work after being elected, have still not been able to establish a clear ideological roadmap or organisational structure,” Adhikari says. &nbsp;“It is easy to form parties, the real work goes into building an institution, which is the hard part”
Meanwhile, despite expectations of increased and inclusive youth participation not just at the polling booths but also on the ballot, only a few GenZ-led parties are applying at the Election Commission. They include the Rastriya Pariwartan Party and the Rastriya GenZ Party Nepal. Most other parties are led by men in their 40s, even in their 70s.&nbsp;
Analysts note that despite hopes of young blood in politics, Nepalis are still inclined to trust those with experience, as evidenced by GenZ’s choice of Sushila Karki to succeed KP Oli as Prime Minister after the September protests.&nbsp;
“So it will be difficult for young Nepalis without prior political experience to lead parties and it will be even more difficult for them to cultivate enough public trust to get votes,” says Adhikari.&nbsp;
Then there are the old political players, who have been breaking up and making up new alliances. Resham Chaudhary quit his Nagarik Unmukti Party and registered a new one.
Last week, Puspha Kamal Dahal’s Maoist Centre, and Madhav Kumar Nepal’s Unified Socialists merged along with smaller leftist parties to form the Nepali Communist Party (NCP). Disgruntled former UML members like Bhim Rawal have also joined the NCP. On the other hand, Janardan Sharma has fallen out with Dahal and is going his own way.&nbsp;
Even though the NC, UML and NCP show little sign that they have learnt their lesson and will be turning a new leaf, they still have the party organisation and vote banks to fall back on at election time in the runup to 5 March. &nbsp;
Says Adhikari: “At the end of the day, Nepali society remains hyper-partisan. And although the newly-formed parties and their popular candidates may give older leaders a run for their money, established parties will still benefit from their solid vote base.”

Party Time

The very first frame in The Lama’s Son starts with a vision of Shangrila and the quest of a mythical utopia in the Himalaya when the rest of the world is crumbling away. It is also the personal search of filmmaker Kesang Tseten, but what he finds there are adherents of the Bon Po faith clinging to the last remnants of a culture as it erodes away like the sandstone cliffs of Mustang. “It was while editing the documentary that the story became distilled: how does what we see in the high Himalaya relate to the notion of the Shangrila idyll that especially the West ascribed to them,” asked Tseten during a recent trip to Kathmandu from Berne where he now lives. He continued: “Often and perhaps rightly criticised as an orientalist construct, I wondered if there was any basis at all to the Shangrila notion, and I hung the film on that idea.”&nbsp; Tseten takes us to the vast vistas of Mustang and Dolpo, a landscape of his Tibetan ancestors. This is as much an intimate documentation of families on Nepal’s Himalayan rimland torn between remoteness and globalness as it is about Tseten’s own quest for rootedness.&nbsp; We start from Lubra, a 3,000m village in Mustang the 15 households of which follow the Bon faith. Lama Tsultrim is from a 900-year-old lineage of the animist faith and an exponent of the tradition that is slowly being subsumed first by Buddhism and now modernism. For Tseten, the material is familiar, and not at all exotic as it is for non-Nepalis and indeed for many urban Nepalis. Bon, founded in Tibet, predates Buddhism, but over time, the two religions have come to resemble each other.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45.jpg" data-media-id="editor_0" data-image-id="20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  ‘Both believe in karma, rebirth, and that humans can become enlightened. Nature and spirits are predominant in Bon, and rituals are what keep them benign and alight,’ says Tseten, who rarely narrates in his documentaries. “This is not really a personal film as such, but it has a point of view,” Tseten said. “I decided to have a voice-over on this one and cast my presence in the film.”&nbsp; Lubra's Lama Tsultrim is called upon to perform rituals from Kagbeni and other villages, but there is no one to continue the tradition after him, which is passed from father to son. Lama Tsultrim’s son (hence the title of the film) is a sushi chef in New York and has been gone for 20 years. “The Lama is like a setting sun, his son should come back and take over his father’s responsibilities,” says a local youngster chatting with friends. “If he dies tomorrow, where do we go? We can’t just light butter lamps ourselves to the gods.” It is not only the Lama’s son who has left. The village is nearly empty, and more are planning to leave. One of them is Chimi, a teacher who will be joining her fiancé who is an Uber driver in New York. Her brother is already in Hong Kong. In Lo Manthang a local is back home for a three-month vacation after being in New York for 12 years. A shopkeeper was in Japan for several years, and has returned. “Everything has changed, our language, our tsampa, our religion. We used to work and live together, now the children live separately,” says a middle-aged woman. “There are roads now, and vehicles stop right outside our house, but what’s the point? No one stays home.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c.jpg" data-media-id="editor_1" data-image-id="20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  Like most of Tseten’s films, The Lama’s Son is an honest documentation of a place and people whose lifestyle, culture and heritage cling precariously to the past. In Dri village we come across local women filling their buckets with water. Tseten asks them why the village is so empty: “Where is everyone?” The women reply that they are “here, there and everywhere”. Then it is their turn to ask Tseten about where he lives and what he is doing in their village. Migration is a recurring theme in Tseten’s documentaries from We Corner People, In Search of the Riyal, or Saving Dolma. His previous film Diversity Plaza documented the lives of Nepali and Tibetan emigrants in Jackson Heights in the borough of Queens in New York.&nbsp; Diversity Plaza was shown at DOC NYC in 2023, and The Lama’s Son will be one of only two Asian films shown next week at one of the biggest documentary film festivals in the world.&nbsp; “The Lama’s Son is not loud, not attention grabbing but intimate, so I was surprised they chose a quiet film for a big, flashy event,” Tseten told us. In Lama’s Son, we also see how climate breakdown is impacting Nepal’s trans-Himalayan regions. Lama Tsultrim shows us the aftermath of a recent glacial flood that swept away houses and fields. The debris-covered farms are as hard as cement.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff.jpg" data-media-id="editor_2" data-image-id="20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  The nearby village of Dhey at 3,900m is a high and dry cold desert. Farmers get one crop in a year, but the springs have gone dry and there is no snow in winter. So they are relocating to New Dhey, closer to the road. We follow Kesang Tseten to Samling in Dolpo, which at 4,200m is another Bon village. Locals are preparing for the Walchu festival in which Lama Sherrab carries out elaborate rituals to appease spirits that can turn malevolent. But unlike Lama Tsultrim in Lubra, Lama Sherrab has a community of lamas to help him, including two sons, one of whom will eventually take on his role. We move on to the adjacent village of Bicher and listen in as locals talk about how despite being dirt poor, they thrive in scarcity and are resilient. “We wear sheepskin, eat stew and yak meat, and drink wine. But we are very poor, we have nothing. Look at how dirty our clothes are. We may be dirty, but we have few illnesses,” says one. But even here in Upper Dolpo, a week’s walk from the nearest road, things are changing. There are mobile phones, readymade clothes and instant noodles.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78.jpg" data-media-id="editor_3" data-image-id="20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  At the Walchu ritual, Tseten watches men and women with hand-woven blankets and down jackets sing and dance after the main ceremony. He narrates: “Bon is sustained by a way of life that fosters a fine but fragile balance between nature and people, where humans come before gods. This is what lies at the heart of Shangrila if there is such a thing.” The film then takes us half-way around the world to a Bon centre in New York, but (spoiler alert) the eponymous Lama’s son never appears. He did not want to be filmed, but it makes for a more powerful portrayal of the life of emigrants forever trapped between two worlds. “Bon villages may be in danger, but the Bon has spread widely across the world,” narrates Tseten, a director who likes to call his storytelling ethnographic, and avoids coming to an apt conclusion. Lama Sherrab’s words after the Walchu ritual is a perfect segue:&nbsp; “Whether you say om mani padme hum (in Buddhism) or matri mi yu (in Bon) they are the same. When you go up, it’s the same heavenly realm. If you go down, it’s still the lord of death who awaits. There isn’t a separate heaven and hell for Buddhists and Bon, it has to be the same for both.” &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d.jpg" data-media-id="editor_4" data-image-id="2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d" data-rendition-name="original" width="7087" height="10004" loading="lazy" alt="The Lama's Son NT"> </figure>  The Lama’s Son by Kesang Tseten, 2025 Shunyata Films To be screened at DOC NYC 16 November at 2:05PM local time, Online: 17-30 November Details <a href="https://www.docnyc.net/film/the-lamas-son/">here</a>.

The periphery cannot hold

It was pure drama: the political transition in Madhes unfolded by the dawn’s early light. At around 4AM on Monday, Province Head Sumitra Subedi Bhandari quietly departed Janakpur saying she was headed to Kathmandu for health reasons.&nbsp;
Outgoing Chief Minister Jitendra Sonal, whose coalition had begun to unravel, even saw her off, asking supporters to clear the road for her motorcade.
But an hour later, instead of continuing on to the capital, Bhandari stopped in Bardibas on the East-West Highway. There, as the sun started rising over the misty plains, she administered the oath of office to Saroj Kumar Yadav of the CPN-UML, invoking Article 168(3) of the Constitution.&nbsp;
Bhandari is also a member of the CPN-UML. The provision she invoked is typically used only after coalitions fail under Article 168(2), and the timing and location of the swearing-in have since drawn scrutiny.
Bhandari was subsequently relieved of her duties, and former National Planning Commission member Surendra Labh Karna was sworn in as the new Madhes province head on Tuesday.
Sonal had formed his government barely a month ago, with the backing of 56 provincial lawmakers but it became evident he would not secure the 54 votes needed to survive a confidence motion.&nbsp;
Several lawmakers in his coalition publicly signalled they would abstain. Still, the seven-party alliance that opposed Yadav’s appointment argues that the Province Head, who is the highest constitutional rank in the provincial structure, acted prematurely and under pressure from central UML party command.&nbsp;
A coalition of seven parties, including the Nepali Congress (NC), had been urging the Province Head to invite them to form a new government under Article 168(2). At the same time, the UML, which had been holding demonstrations outside the Province Head’s office in Janakpur, was calling for the formation of a minority government under Article 168(3).
The alliance of the seven parties that included the NC and Maoist Centre took to the streets. By mid-morning, protests had escalated outside Madhes Bhawan with cadre vandalising both the Chief Minister’s office and the Province Head’s office.
This was the third government in Madhes to fall since the 2022 provincial elections, and it follows a similar pattern. The previous Chief Minister Satish Kumar Singh of the Janamat Party, resigned before a scheduled confidence vote after losing the support of his own party and others including NC and LSP.&nbsp;
His resignation unfolded amid nationwide GenZ protests against corruption, demanding accountability and reform. The recurring instability points to a structural tension in Nepal’s federalism.&nbsp;
Provincial politics remain closely tied to alliances shaped in Kathmandu. The withdrawal of support by parties like the NC and Maoist Centre in provinces often reflects national-level calculations rather than provincial priorities.
As a result, the Provincial Assembly is repeatedly consumed by survival of the coalition instead of governance. Development work stalls. Budget execution slows. Public frustration grows. In a province that was at the forefront of the movement for federalism to counter what is seen as neglect, apathy and discrimination by Kathmandu, the sense that the system may not delivering on its promise is becoming increasingly pronounced.
If federalism is to be strengthened, provincial governments must be able to function with a degree of autonomy that currently exists more in principle than in practice. Otherwise, the perception that federalism is costly, unstable, and ineffective will continue to expand, providing fertile ground for anti-federal sentiment that is already gaining traction.
Earlier examples such as the NC General Secretary Bishwo Prakash Sharma in January calling for a new government in Madhes led by his party demonstrates how the central party leadership deliberately intervenes in provincial affairs. His remarks came during campaigns for bi-elections in Madhes when former CM Singh had been in office for six months only.&nbsp;
Likewise, in early June 2024, the federal coalition in Kathmandu shifted from a Maoist Centre and NC to form a new alliance between the NC &nbsp;and the UML. Within a day, coalition negotiations in Madhes changed to mirror this.
UML leaders publicly stated: “The issues at the federal and provincial levels will be resolved together.” This indicated that the realignment in Madhes followed national party decisions rather than provincial deliberation.
The events that unfolded in Madhes are a reminder that federalism in Nepal is still in transition, and that its success depends on political actors honouring the constitutional framework.

Chronic instability in the Madhes

The sixth edition of PhotoKTM will mark a decade of visual storytelling and continue its role as a vital platform for photographers and visual artists to explore the politics of photographs and their role in shaping our histories and futures.&nbsp; The month-long festival across Kathmandu Valley features 18 exhibitions, slideshows, workshops, artist talks, panel discussions, portfolio reviews, and film screenings. While Nepal Art Council will be the anchor venue, the festival will go on the road in Mangahiti and Chyasal in Patan, Nigu Pukhu in Madhyapur Thimi, Nandi Keshar Bagaincha in Naxal and Tribhuvan University. The curatorial themes of PhotoKTM 6 Global South Solidarities draws inspiration from the historic 1955 Bandung Conference in Indonesia, which marks its 70th anniversary this year.&nbsp; The festival explores the political and cultural legacy of the Third World Project, exploring the history of global resistance and solidarity, and how they have shaped contemporary processes to reclaim sovereignty of regions battered by centuries of colonialism, exploitation, and violence.&nbsp; The festival spotlights the work and curatorial voices of artists from over 40 artists based in the Global South, from Santiago to Lubumbashi and Quito to Dakar, alongside Nepali photographers and filmmakers. “We hope this year’s coming together will deepen cultural understanding among artists and cultural communities across the Third World, strengthen reciprocal transnational solidarities through the sharing of our histories, stories, struggles and hopes, and open up pathways for more south-south collaboration and exchange across geographies,” says NayanTara Gurung Kakshapati, co-founder and festival director.&nbsp; Also featured are eight Nepali artists from the 2025 photo.circle fellowship cohort, whose works explore questions, challenges, and contradictions surrounding the notions of ‘development’ and ‘progress’ in contemporary Nepal.&nbsp; The festival comes two months after the GenZ protests, at a pivotal moment when Nepal is navigating significant political transitions. Says curator Diwas Raja KC: “From anti-colonial struggles to the Bandung Conference, to the non-alignment movement and revolutionary cultural exchanges, these histories continue to shape how countries like Nepal imagine their place in the world.”&nbsp; PhotoKTM6 is supported by the Shikshya Foundation Nepal, the Embassy of Switzerland in Nepal, as well as independent non-profit organisations FreeMuse and Cultural Workers Solidarity Front. “I think it is particularly relevant that these spaces are created and maintained because it is only if people meet and continue to do this important work, in which they think collectively, they work collectively, and they hold up certain values, that they will be capable of contributing to what I would call a ‘free world’,” says yasmine eid-sabbagh, who is the invited interlocutor to this year’s festival. &nbsp;&nbsp; <h2>Ji ta Newa Bhyaa Mawa (I don’t know Nepal Bhasa)&nbsp;</h2> Jyoti Shrestha  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121124_0fbeb8abf122867f5d5294c6e4c7ef2a4e3785e2d4083fb663ebe543e9b8396d.jpg" data-media-id="editor_0" data-image-id="20251113121124_0fbeb8abf122867f5d5294c6e4c7ef2a4e3785e2d4083fb663ebe543e9b8396d" data-rendition-name="original" width="1000" height="667" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: JYOTI SHRESTHA</figcaption> </figure>  Jyoti Shrestha was born to Newar parents in Kathmandu but grew up without learning the mother tongue, Nepal Bhasa. ‘My parents, with the best of intentions, taught us English and Nepali—languages of success and survival in a world that had set ours aside... A Newar without language, I felt alien in the very culture that was meant to be mine,’ writes Shrestha in her testimony. Nepal Bhasa is in UNESCO’s ‘definitely endangered’ list. Shrestha has begun to learn her language with help from her parents, and in doing so, their relationship has shifted for the better. She adds: “No census counts the intimacy of a shared memory, the tenderness of language passed between generations, or the weight of an inherited silence.” <h2>The Land Remembers Our Name&nbsp;</h2> Rejin Purja  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_14b44a9e7a9d27c9ac5e893e59930d049d1be05401a42217c304a7d08c2e47e2.jpg" data-media-id="editor_1" data-image-id="20251113121128_14b44a9e7a9d27c9ac5e893e59930d049d1be05401a42217c304a7d08c2e47e2" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: RENJIN PURJA</figcaption> </figure>  The Department of Mines and Geology has confirmed the presence of iron ore in Jhumlawang in East Rukum. Iron mining has not started yet but a Kathmandu-based private company is said to have won the bid at Rs40.3 million. If the project indeed takes off, most of the families will have to be evacuated. “Not only will they lose their houses, land, and forests, but their roots, culture, and autonomy are also at stake. How can this project be considered of national benefit when it forces the very people it should serve to live in fear of their future?,” Rejin Purja writes in his testimony. Economic development exploits the natural resources of native and indigenous communities. Such projects may boost GDP and corporate profits, but they rarely improve the lives of the people whose land is being extracted from. This work reflects the uncertainty felt by the local people about their village’s future. <h2>Fragmented Land and Me</h2> Sujata Khadka  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_f28f960361f822792d8e4442f61deaea71bdf6022b9906509b7e9258939fdbcb.jpg" data-media-id="editor_2" data-image-id="20251113121128_f28f960361f822792d8e4442f61deaea71bdf6022b9906509b7e9258939fdbcb" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: SUJATA KHADKA</figcaption> </figure>  Sujata Khadka’s ancestral home in Godavari’s Jharuwarasi was destroyed in the 2015 earthquake, after which her family built a new house on a small plot of land nearby. In the decade since the earthquake, rapid land trade has turned the farmland surrounding her home into a housing development. For the past 10 years, Khadka has been watching natural and man-made events unfold on the plots from her window on the second floor of her house. The land has been witness to playing children, negotiating brokers, bulldozers, and prowling wildlife. But despite relentless hemming and hawing by buyers and sellers over the past decade, no houses have been built on the land. &nbsp;“This misshapen land feels like a stage where a cast of characters performs an ongoing act,” says Khadka. “Perhaps this land and I are spectators to this drama.” <h2>Why doesn’t home feel like home?</h2> Karma Tshering Gurung  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_c568cdf076247f8904b289e9108ed4e7b5187d86694913751123a6b5df663142.jpg" data-media-id="editor_3" data-image-id="20251113121128_c568cdf076247f8904b289e9108ed4e7b5187d86694913751123a6b5df663142" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: KARMA TSHERING GURUNG</figcaption> </figure>  Karma Tshering Gurung was born in Manang to a Manangi family, where he was raised with his siblings. But in recent times, whenever he has visited his family in Manang, he has felt a sense of unease, like the place sees him as an occasional visitor, an outsider who no longer understands the aspirations of his people. As Manang becomes a tourist spot, Gurung’s brother thinks it is a good idea to tear down their ancestral house and build a snooker house in its place. But Gurung thinks the house is their Appa’s legacy, and worth preserving. The brothers’ ideas of home have diverged. &nbsp; &nbsp;“With a camera in hand, I am trying to rediscover my relationship with this place, with my past, navigating ideas of home and belonging tied to Manang,” he says. “Maybe home for me is no longer just a place, but this search for identity, memory and connection.” <h2>Life and Struggle of Garment Workers&nbsp;</h2> Taslima Akhter (Bangladesh)  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_9447434bde6d70048768c33dda8001e4e3f8da0718c8fff8f96970c4d69139ef.jpg" data-media-id="editor_4" data-image-id="20251113121128_9447434bde6d70048768c33dda8001e4e3f8da0718c8fff8f96970c4d69139ef" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: TASLIMA AKHTER@Taslima Akhter</figcaption> </figure>  This project focuses on the millions of workers who leave their villages and move into crowded worker barracks in the cities of Bangladesh, in search of a better life. <h2>Between Us, a Thread&nbsp;</h2> Ahmed Alaqra (Ramallah)  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_805845728d6e1fd13539d5c0af35f202f72ffbfb8e7dd502cc3c44067e2b574f.jpg" data-media-id="editor_5" data-image-id="20251113121128_805845728d6e1fd13539d5c0af35f202f72ffbfb8e7dd502cc3c44067e2b574f" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: RUBA ALFARAOUNA</figcaption> </figure>  A quiet gesture between photographers, image-makers, and those who hold memory like a fragile light. Palestinian, Arab, scattered — yet orbiting the same wound.&nbsp; <h2>Possible and Imaginary Lives&nbsp;</h2> yasmine eid-sabbagh / Rozenn Quéré  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_a30877e2c30764d5d29c0b0457e2722685138e968549dedd8803dee1299bc45c.jpg" data-media-id="editor_6" data-image-id="20251113121128_a30877e2c30764d5d29c0b0457e2722685138e968549dedd8803dee1299bc45c" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo Courtesy: YASMINE EID-SABBAGH AND ROZENN QUÉRÉ(Photo: ) </figcaption> </figure>  An exhibition, based on family photographs and taped interviews, tells the story of four strong and feisty Palestinian-Lebanese sisters, exiled to the four corners of the globe. <h2>Martyrs, Saints &amp; Sellouts&nbsp;</h2> Siona O’Connel (South Africa)  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121128_7b84f695bdd27353af1f35ff5f739283d739b4fa7594e4965ca1230d4d60940b.jpg" data-media-id="editor_7" data-image-id="20251113121128_7b84f695bdd27353af1f35ff5f739283d739b4fa7594e4965ca1230d4d60940b" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: BENNY GOOL</figcaption> </figure>  Comprised of photographs by Benny Gool, Zubeida Vallie and Adil Bradlow, documenting apartheid South Africa, this exhibition presents a vivid narrative of violence, loss and injuries that continue to reverberate under the rhetoric of the post apartheid landscape. <h2>Humo, Semilla, Raíz</h2> Isadora Romero (Ecuador)  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113121132_b01b94f340265fd42dcdffd98f39f58d3b1b3385718cb055d2b35e04fb1eda58.jpg" data-media-id="editor_8" data-image-id="20251113121132_b01b94f340265fd42dcdffd98f39f58d3b1b3385718cb055d2b35e04fb1eda58" data-rendition-name="original" width="1200" height="798" loading="lazy" alt="The politics behind photographs NT"> <figcaption>Photo: ISADORA ROMERO</figcaption> </figure>  An alternate look into environmental issues through the prism of possibility, instead of catastrophic consequence is what this exhibition brings. Romero’s visual research engages with how the loss of ancestral memory and Indigenous knowledge resulting from colonisation, forced displacement, and racism is causing seeds to disappear at an alarming rate. <h2>First week schedule (selected)</h2> Friday, 14 November Bhandarkhal Garden, Patan Museum, 5:30pm -7:30pm Festival Opening + Award of Excellence Saturday, 15 November Yala Maya Kendra, Patan Dhoka 3pm-4pm Demounting Louis Agassiz – Artistic Renegotiation of Archive, Memory &amp; Place. Talk by Sasha Huber (moderated by Diwas Raja Khatri) 4:30pm-6pm Witness or Accomplice: Photography, Human Rights and the Question of Freedom. Talk by Prof. Siona O’ Connell (moderated by NayanTara Gurung Kakshapati) Sunday, 16 November Yala Maya Kendra July, Unfinished. Jaheen Faruque Amin in conversation with Sabnam Lama, 3pm- 4pm When The World is Blind – Images by Palestinians. Ahmed Alaqra in conversation with yasmine eid-sabbagh, 4- 6pm Manga Hiti, 7pm-8pm Slideshow – Who Does The River Belong To? Monday, 17 November Yala Maya Kendra, 3pm - 4pm Memory is an Inaccurate Place: Dialogues Across Time, Territories, and Histories. Isadora Romero in conversation with Tanvi Mishra 4:30pm-6pm Third Camera – a Film Series: Ernest Cole: Lost and Found Dir. Raoul Peck 2024 | 1h 46m | English Tuesday, 18 November Yala Maya Kendra Sustaining Art Ecosystems That Resist and Nurture – Part 1 Paola Farran in conversation with Jessica Lim, 3pm- 4pm Sustaining Art Ecosystems That Resist and Nurture – Part 2 Chelsea Chua in conversation with Tif Ng, 4pm:30-6pm Khapinchhen, Patan A Photographer’s Fifty-Year Journey in Nepal. A Slideshow and Talk with Kevin Bubriski, 7-7:30pm PhotoKTM Bhoé, 7:30pm-9:30pm Rs1,800 (early bird), Rs2,000 (door sale) Wednesday, 19 November Yala Maya Kendra 3pm- 4pm Sustaining Art Ecosystems That Resist and Nurture – Part 3 Andrea Thal in conversation with Diwas Raja Khatri 4:30pm-6pm We must refuse silence! Samir Eskanda, Shahidul Alam, and Tabara Korka Ndiaye in conversation with yasmine eid-sabbagh Thursday, 20 November Nepal Art Council, 4pm- 6pm Walk-thru at NAC with Enuma Rai, Jyoti Shrestha, Karma Tshering Gurung, Manoj Bohara, Manjit Lama, Rejin Purja, Sujata Khadka, Sushila Bishwakarma More details <a href="https://photoktm.com/photoktm6-schedule/">here</a>. PHOTOKTM6 14 November-14 December Kathmandu Valley All events free and open