Following the <a href="https://nepalitimes.com/opinion/nepals-maoist-leader-visits-china">visit of Prime Minister Pushpa Kamal Dahal to China</a> earlier this month, there was talk that export of buffalo meat to China was on the agenda. If so, not enough homework was done before Nepal raised the possibility.&nbsp;
Some traders in Kathmandu claim there is a growing demand for buffalo meat in China, and there have been reports of slaughterhouses in the eastern Tarai where buffalo meat is processed specifically for the purpose of smuggling it to China through various routes.
Chinese media do report the seizure of undocumented buffalo meat inbound to China from Vietnam, there is no evidence that the contraband is originally from Nepal.
Finding out if there is indeed a growing demand for water buffalo meat in China is not easy. The annual Chinese customs import data categorise buffalo meat (not visceral organs like liver, intestine, tongue, etc.) together with other cattle raised for meat under the category 'meat of bovine animal'.
Furthermore, an average Chinese person does not distinguish between buff and beef as separate products. For the average Chinese, beef/牛肉 (shuǐ niú ròu) is interchangeable with buffalo meat. Shuǐ/水 means water in Mandarin.
With the growth of China's economy and rising living standards, the demand for bovine meat is indeed shooting up. Due to the limited arable land and the local bovine population, ever larger quantities of beef/buff need to be imported every year.
China was already importing $2.52 billion worth of beef in 2016, and this grew to $17.76 billion in 2022. The top five source countries were Brazil, Argentina, Uruguay, New Zealand and Australia.&nbsp;
The export of beef from Nepal is prohibited, but water buffalo meat export to China could be economically viable. But a great deal more homework needs to be done on the legal or technical infrastructure aspects.
The General Administration of Customs of China (GACC) has strict rules for imports of 18 food items, including meat products. These not only relate to how the meats are produced or manufactured, but also ensure that the food safety management system of the exporter country is equivalent to Chinese standards.
Which means that even a state-of-the-art Nepali slaughterhouse following safety and hygiene practices in frozen meat production has little to no chance of exporting to China unless the GACC has certified it.&nbsp;
Furthermore, there are exhaustive GACC standards in the evaluation and confirmation process, which include confirming legal provisions, animal and plant diseases, competence of food safety supervisory, overall safety and hygiene control in food production, processing, transportation and storage, competence in export food safety, food protection, traceability and recall system, emergency response preparedness, technical support capabilities, so on and so forth.
Read also: <a href="https://nepalitimes.com/banner/are-you-sick-of-chicken">Are you sick of chicken?</a>, Sonia Awale
While there are provisions in Nepal for food safety and animal and plant epidemics, there is a wide implementation gap for safety and hygiene control in food production, transportation and supplies. For example, the Slaughterhouse and Meat Examination Act 1999 makes the licensing of slaughterhouses and examination of the meat mandatory, but looking at meat shops even in Kathmandu, it is clear how lax enforcement is.
The most recent epidemic of the lumpy-skin disease in cattle and the shortage of vaccines is indicative of Nepal's lack of preparedness in responding to the animal and plant epidemics, and the country needs to do a lot more to qualify as an exporter country for food products including bovine meats.
However, assuming that Nepal is planning to export water buffalo meat to China, it must quickly request an evaluation by the GACC -- even if such an exercise will likely result in the Nepalese food security management system not meeting the standards.
Read also: <a href="https://nepalitimes.com/banner/nepal-sets-ambitious-target-for-food-sufficiency">Nepal sets ambitious target for food self-sufficiency</a>, Ramesh Kumar
Doing so would have practical benefits in having recommendations from the GACC as rectification instructions would also indicate the gaps, addressing which could strengthen technical cooperation between Nepal and China, at least in animal husbandry, and have benefits for Nepal’s own domestic meat industry.
Once Nepal moves toward standards-based food production, transportation, storage and security, it could then apply to be registered as an exporter in the GACC registration system.
Should Nepal pass the GACC evaluation and confirmation assessment, it can expect Chinese investors to be willing to set up meat and other food production and processing facilities here. According to a 2021 FAO estimate, Nepal has 2.32 million hectares of land underutilised which could potentially be developed as pasture.
Increased investment in food production and processing industries in turn can have trickle-down benefits to farming populations, especially in the hinterland where youth are migrating away from the land due to the lack of opportunities.
What is needed is <a href="https://nepalitimes.com/editorial/polluted-politics">political will</a>, integrity and a determination to follow through. Things will eventually fall in place once we realise the gap and work to fill them. Or we can continue on being the country with the most bilateral MOUs with no practical significance except junkets for bureaucrats and politicians.
Nirab Gyawali is a Nepali lawyer working to be the first Mandarin-speaking transaction lawyer in Kathmandu.

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Not easy for Nepal to sell buffalo meat to China

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131120/6372333a9c7e80680e0c48d0jpeg.jpg" alt="" width="3264" height="1472"/><figcaption>Photos: ROSHAN MISHRA</figcaption></figure>Among the many legends about the Boudhanath Stupa, one involves a poor poultry keeper Jhazima and the buffalo skin.Boudhanatha is in fact the Sanskritised Panchayat-era renaming of the chaitya which was originally called <a href="https://www.nepalitimes.com/banner/a-temple-by-another-name/">Khasti Mahachaitya</a> (‘great stupa of the dew drops’). However, the chaitya had another name too according to the Tibetan Buddhist tradition –– the Great Jarung Kashor (‘Let it be done, Slip of the tongue’) Stupa.Many years before the birth of the Shakyamuni Buddha, Jhazima, lived with her four sons in the village where Boudha sits today. After the demise of the Kasyapa Buddha, she petitioned the king to grant her land the size of a buffalo’s skin to build a stupa and inter the Buddha’s remains. The king, thinking it would be a measly piece of land, gave her permission.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131120/6372333d9c7e80680e0c48d1jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>However, Jhazima carefully cut the buffalo skin in a long strip, like a rope, and circumscribed a larger area – where the great Boudhanath Stupa stands today.This symbol of devotion quickly took on a political significance, as the wealthy people of the country were humbled by Jhazima’s faithful act.If a poor woman like her can build a stupa of such magnificence, they thought, they would have to build shrines equal to the mountains.“Stop the building,” they implored the king: “If this construction continues, then each and every one of us will be harshly criticised.”But the king would not hear of it. “This poor, single poultry-woman, through gathering earnings from raising chickens, established her four sons born of four fathers as respectable householders. Not only that, with her remaining wealth she builds a stupa such as this. I thought this to be truly amazing, and so the words <a href="https://www.lotsawahouse.org/tibetan-masters/ngakchang-shakya-zangpo/great-history-of-jarung-kashor-stupa" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.lotsawahouse.org/tibetan-masters/ngakchang-shakya-zangpo/great-history-of-jarung-kashor-stupa&amp;source=gmail&amp;ust=1660101181265000&amp;usg=AOvVaw1wvhhCg-Bb6IhKdfptWV4l">‘Let it be done’ (jarung) slipped from my tongue (kashor)</a>. Kings speak but once!” he said in response.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131120/637233409c7e80680e0c48d2jpeg.jpg" alt="" width="1750" height="1055"><figcaption> </figcaption></figure>This charming and extraordinary story is the subject of Object in Focus #5: Invocation at the <a href="https://www.facebook.com/TaragaonMuseum">Taragaon Museum</a> situated next door to Boudhnath itself by contemporary visual artists Koka Vashakidze from Georgia and Alicia Junissaliyeva from Kazakhstan and curated by Roshan Mishra.At the centre of the room is a dark-coloured rope-like object spiraling – almost like a dizzying solar system, with what looks like a vague triangle standing in for the Sun – and surrounded by a rectangle of red ropes.But as one walks around, observes the work with an unfaltering gaze, the circle of the base quickly stands out. Then, with a little change in the angle, one can imagine a dome rising from it, followed by the ever-watching eyes and the finial.Here is the Boudhanath Stupa, translated, stripped down to its backbone – an abstraction. Like a cosmic bridge, it brings together the myth and the monument, looking both ways into the past and present.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131120/637233439c7e80680e0c48d3jpeg.jpg" alt="" width="4000" height="1800">All this may not be entirely conspicuous at first, but when one realises that the whorl is in fact real buffalo skin, the pieces fall in place. The rectangle outlines the block of land upon which the Mandala sits today. Take a step back outside the building and the doors represent the streets opening around the complex.The artists spent several weeks in Boudhanath, measuring the circumference of the stupa. Since animal skin is not permitted inside, they used the red rope for the purpose. People would come and watch them at work, perhaps wondering what they were up to. But the story of Jhazima, Vashakidze believes, was one of undefeated courage and creativity.Jhazima defied expectation, says Vashakidze. And instead of just putting the skin on the ground, she cut it in narrow strips to cover more area, demonstrating her boundless imagination. “And the king in the end has to say, ‘No, she has to continue making the stupa’,” he adds.Vashakidze, whose extensive contemporary body of work ranges from site-specific pieces to media installations, sees this as the moment when the rich and the poor, the powerful and the weak, are equal – because one woman with devotion for the Buddha stood up against the system and built an unprecedented monument, anticipating perhaps even the Shakyamuni.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131120/637233479c7e80680e0c48d4jpeg.jpg" alt="" width="640" height="750">The artwork, in this sense, is an invocation to memory, to history and to Jhazima. Along with Junissaliyeva’s experience in healing and energy exploration, the trio of the artists and curator Mishra has created a poignant piece that is equally contemplative and dramatic, reminding us that despite the overwhelming restrictions – political, social, professional – and widespread philosophical, spiritual lethargy around us, we can still create what we want to, for the realm of possibility is boundless.Says Mishra: “I think it is a brilliant notion to sit with one object, one narrative.” This has much to do with the fact that the viewers can spend time with this echo from the past under an extended spell.Leaving the exhibition, one is filled with a striking desire to visit the <a href="https://www.nepalitimes.com/here-now/the-stupa-of-a-million-dewdrops/">Boudhanath Stupa</a>, where the remains of Kasyapa Buddha are believed to be entombed, to compare, to recall. There too, prayers and invocations from all around bounce off the white dome and fill the air with sweet music, as though the voices of good will have never ceased and promise to echo into the future – in the same way that Object in focus #5: Invocation is an echo itself, of the enduring legacy of Jhazima.The artwork will also travel to the Tbilisi Triennial in Georgia in October 2022.Object in focus #5: InvocationBy Koka Vashakidze and Alicia JunissaliyevaCurated by Roshan MishraTaragaon Museum,BoudhaOpen 10:00am – 5:00pmTill 18 August 2022.

Ashish Dhakal

Echoes of myth and monument

<figure><img width="755" height="814" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a96159c7e80680e05dc49jpeg.jpg" alt=""/><figcaption>The cover of Nepali Times Issue 478 (27 Nov-3 Dec 2009)</figcaption></figure>Mahagadimai Municipality of Bara district is preparing for an influx of millions of visitors next month for the practice of mass animal sacrifice that has <a href="https://archive.nepalitimes.com/article/nation/Overkill-in-Gadhimai,1794">tarnished Nepal’s image</a> as a peaceful and compassionate nation.The little town of Bariyapur has gained international notoriety for the Gadimai Mela, where pilgrims from India and Nepal who have had their wishes fulfilled congregate every five years to offer mass animal sacrifice in gratitude. But the blood-letting has also sparked outrage and activists worked to get Nepal’s Supreme Court to rule against the wanton killings in 2016. "There are so many animals, and many are not even beheaded cleanly because the knives are blunted by the mass slaughter. Sometimes they have to hack the animal many times, and the animals take hours to die,” says media personality Saroj Nyaupane, who co-filed the writ petition at the Supreme Court with advocate Arjun Kumar Aryal.Nyaupane adds: “The animals are not even being killed for food. Nepalis take great pride in the Buddha being born in Nepal but such cruelty is against Buddhist principles.”Despite the court ruling, the government has not banned the practice. Bara's Chief District Officer Phanindra Mani Pokhrel told Nepali Times his administration is trying its best to discourage the sacrifices.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://time.com/3609356/the-worlds-largest-animal-slaughter-festival-has-begun-in-nepal/" target="_blank" rel="noopener">The World's Largest Animal Slaughter Festival Has Begun in Nepal</a>  <figure><img width="896" height="1280" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108181144/636a96189c7e80680e05dc4ajpeg.jpg" alt=""><figcaption> </figcaption></figure>"We have held discussions, and spread the message discouraging animal sacrifice through local radio and newspapers. But we cannot suddenly stop it right now. Activists also need to work on it constantly rather than just before the festival," Pokhrel said. Mahagadimai Municipality is preparing in earnest for the festival scheduled to begin 3 December. Mayor Shyam Yadav says tents are being erected and toilet facilities built for the huge influx of devotees and their animals. In 2014, there were an estimated 6 million visitors, and roughly 250,000 water buffalos and goats killed.  This time, fewer animals are expected to be killed because of court decisions in India and Nepal and growing public awareness. Activists have raised issues of not just <a style="background-color: #ffffff; letter-spacing: 0.15px;" href="http://archive.nepalitimes.com/news.php?id=16522">animal cruelty</a>, but also the lack of visitor accommodation, environmental impact, hygiene, pollution and the health and condition of the animals. This year, the government and the Gadimai Operation and Development Committee have promised to take care of these issues. In earlier years, the Chamar community used to consume the dead buffaloes, but younger members of the community are boycotting the meat this year. Says Dalit activist Manoj Ram: "It's not just about the meat, but also self respect. Society looks at us with distaste because we eat leftover sacrificed buffalos. We want to stop that.”Legend has it that the Gadimai Mela started about 200 years ago when a man sacrificed five drops of his own blood to the goddess for a fulfilled wish. Over the years people substituted defenceless animals for human blood.The temple committee has refused to budge on the practice despite the outrage in Nepal and globally. "We do not sacrifice animals-- people come from far away bringing their animals. If they are not able to fulfil their vow, their faith is broken, and we cannot have that,” says Ram Chandra Sah of the temple committee.The temple's chief priest Mangal Chaudhary adds that it is not necessary to sacrifice animals. "YOu can just as well sacrifice a coconut, or offer flowers and swets to the goddess," he says in an interview with Bloodless Gadhimai campagin.While activists say the festival has <a href="http://archive.nepalitimes.com/blogs/thebrief/2014/11/17/no-sacrifice-gadhimai-nepal/">brought shame on Nepal</a>, the temple is proud that it has put Gadimai on the world map. Devotees see criticism of the festival as an attack on Hinduism, and accuse western activists of double standards for not being outraged when millions of turkeys are killed at Thanksgiving. Frensh actress Brigitte Bardot and British actress Joanna Lumley have spoken out against it, earning the festival further notice and international criticism.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://edition.cnn.com/2014/11/29/world/asia/nepal-gadhimai-ritual-slaughter/index.html?fbclid=IwAR2uv0d-6x-e-CRFJRl6qyI2fXlVqkK1edzgsfNMg2QoXKf6Ejzlvz4dD_Y" target="_blank" rel="noopener">Death and the goddess: The world's biggest ritual slaughter</a>Yet, the strongest voices against the bloodletting are from Hindus, themselves who say the festival is not an ancient tradition and not deeply rooted in religion. Animal rights activist Pramada Shah says the <a href="https://www.nepalitimes.com/here-now/the-sacrifice-of-animal-sacrifices/">sacrifices</a> go against religious teachings.She says: "They are done in the name of religion. But Hinduism does not teach people to torture animals. It is religious malpractice, like sati and untouchability, and we need to reform it. The Supreme Court decision is not enough. We need stronger laws, and an effective awareness campaign among communities who practise it."

Activists decry animal slaughter at Nepal temple

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

Visit Nepal in the monsoon

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

Not poor, but not rich

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

Nepal’s bubble economy

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