<figure><img width="1200" height="1584" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161148/636d1dae9c7e80680e0af3cfjpeg.jpg" alt=""/><figcaption>Illustration: BHANU ACHARYA/NEPALI TIMES</figcaption></figure>During the 2017 elections, Baburam Bhattarai’s Naya Shakti Party propped up the Nepali Congress (NC) elsewhere across the country while seeking support in Gorkha, where Bhattarai himself would run, and Rasuwa where his party’s Prem Tamang was contesting.
But when it came time to register his candidacy, Tamang withdrew from the MP race and chose to run for state assembly instead, putting his support behind billionaire businessman Mohan Acharya, the bankroller of the NC.
Read also: <a href="https://www.nepalitimes.com/here-now/purchasing-power/" target="_blank" rel="noopener noreferrer">Purchasing power</a>, Ramesh Kumar
Acharya had registered his candidacy after convincing party chair and prime minister Sher Bahadur Deuba, presumably with money being exchanged, to let him run for office.
The construction <a href="https://archive.nepalitimes.com/article/nation/bulldozing-democracy-in-nepal,4184" target="_blank" rel="noopener noreferrer">contractor who spent a lot more money</a> while campaigning, would go on to win Rasuwa. A year later during an interview, Bhattarai himself accused his party colleague Tamang of selling out his candidacy to Acharya.
Acharya’s opponent was Janardhan Dhakal, another construction businessman who had the UML ticket. The race in Rasuwa was therefore a battle between who could spend more money. Both candidates hosted lavish parties, had extravagant motorcades, and distributed cash to buy vote banks.
What happened in Rasuwa in 2017 is a reflection of <a href="https://www.nepalitimes.com/latest/the-business-of-politics-in-nepal/" target="_blank" rel="noopener noreferrer">Nepal’s current electoral system</a> — competent candidates have no chance against powerful tycoons who have bought election tickets from party bosses.
Even as they spend extraordinary money to woo voters, Nepal’s political parties have failed to be transparent about their funding in official reports.
Donations from businesses are the primary source of funding for all political parties, and that is where the rot sets in.
However, the amount of financial support received from well-wishers, supporters and businesses are not broken down in the accounts of any of the parties. In fact, they are not mentioned at all.
Read also: <a href="https://www.nepalitimes.com/latest/is-democracy-too-expensive-for-nepal/" target="_blank" rel="noopener noreferrer">Is democracy too expensive for Nepal?</a>, Laxmi Basnet
The fact that all financial assistance is provided in cash and not through the banking system makes it easy for parties to circumvent institutions that oversee election management, even though The Political Parties Act 2017 stipulates that any transactions above Rs25,000 should go through the banking system along with the details of donors.
There is a similar lack of transparency when it comes to details about any fixed assets in the parties’ audit report. In many cases, private donors pick up the tabs for the renovation of party offices just to be above the board, like what the NC’s Umesh Shrestha did to get himself appointed minister by Prime Minister Deuba.
<a href="https://www.nepalitimes.com/here-now/the-business-of-politics-undermines-nepals-democracy/" target="_blank" style="font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Nepal’s politico-business nexus</a> began during the post-Panchayat era after the multiparty system encouraged collusion and quid pro quo. This co-dependency between business and politics became more embedded in subsequent elections.
“When political parties have to spend money to win elections, they start cultivating businessmen and then it is you scratch my back, I’ll scratch yours,” explains economist Keshav Acharya.
Over the years, watching from the sidelines was not enough, and Nepal’s rich directly entered politics as the country began its transition into a federal republic following the end of the Maoist conflict.
Former Finance Secretary Rameshore Khanal resigned in 2011 after Finance Minister Bharat Mohan Adhikari sought the counsel of <a href="https://www.nepalitimes.com/here-now/nepals-richest-man-in-the-pandora-papers/" target="_blank" rel="noopener noreferrer">industrialist Binod Chaudhary</a> during the budget formulation process. He says Nepal’s political parties are at present governed not by institutional systems but the will of individual leaders who mobilise money by helping businessmen launder theirs.
“This practice was introduced by Girija Prasad Koirala in the NC and has been continued by both UML Chairman K P Sharma Oli and Maoist Chairman Pushpa Kamal Dahal,” says Khanal.
Indeed, public sector enterprises like Harisidhi Brick and Bhrikuti Paper Factory were privatised under the first elected government led by Girija Prasad Koirala, and turned into prime real estate.
The Ministry of Finance refunded value-added tax (VAT) to entrepreneurs on consumer goods for almost a decade after 2008, essentially putting VAT paid by Nepali citizens into the pocket of businesses, prompting questions of policy irregularities by the IMF.
Similarly, other NC leaders like former finance minister Ram Sharan Mahat formed the Tax Commission in 2014 which gave tax cuts worth Rs21 billion to big businesses, the case related to which is still pending in the courts.
More recently, Finance Minister Janardan Sharma is alleged to have made policy changes to benefit special interests, like the Shanker Group, through a bill to replace the budget brought by the Oli government.
Of late, businesses have also been actively involved in the infighting within parties that has characterised recent Nepali politics.
The photo of NCP co-chairs K P Oli and Prachanda having lunch with <a href="https://www.nepalitimes.com/editorial/red-rice/" target="_blank" rel="noopener noreferrer">red rice at the home of business tycoon Durga Prasai</a> to discuss party unity went viral and prompted widespread ridicule.
The two leaders also held several discussions at the residence of construction contractor Sharada Prasad Adhikari who was untouchable because of his proximity to Dahal, as well as at homes of businessmen like Niraj Govind Shrestha and Ajeya Raj Sumargi. Sumargi often acts as a frontman for Dahal’s business dealings.
Businessmen like Capt Rameswar Thapa and Moti Dugar were actively involved in negotiations related to party unification between UML leaders K P Sharma Oli and Madhav Kumar Nepal, who often met at their private residences.
Similarly, Oli's name has been linked to the Yeti Group, and the <a href="https://www.nepalitimes.com/opinion/so-far-so-good/the-silent-skies/" target="_blank" rel="noopener noreferrer">death of its founder Ang Tsering Sherpa</a> in a helicopter crash in 2019 was a big blow to the former Prime Minister who had close personal dealings with him. Sherpa served as Oli’s fixer and was rewarded with coveted real estate and other deals for his conglomerate.
Entrepreneurs who transition into politics do so with the intention of influencing the state machinery to get business-related benefits. Moreover, interactions between business and politics are not limited to Nepali figures, as evidenced by the audiotape of Krishna Bahadur Mahara asking a Chinese businessman for Rs500 million on behalf of the Maoists during Constituent Assembly elections in 2013.
To be sure, politicians have always been making licensing and policies easier at the behest of banking, insurance, medical education, telecommunications, as well as in the stock market, allowing a select few to take advantage of the resulting decrease in competition.
Congress leader and former vice-chairman of the National Planning Commission Govinda Raj Pokhrel notes that money has become the lubricant in Nepali politics. In fact, voters themselves seem to seek out leaders who can take care of their financial interests.
“Unless we clean up our democratic system, our democracy is headed to the edge of a cliff,” he says.
<a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/Electoral-reform,1083" target="_blank" style="font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Former Election Commissioner chief Bhoj Raj Pokhrel</a>, in his recent article 'Political Finance Management: Opportunities for Electoral Reform' has proposed ideas for electoral reform, including the provision of grants to political parties to manage election-related expenses.
This proposal is not a new concept. Past governments have discussed this and former Finance Minister Prakash Chandra Lohani even made a related proposal in the 2004 budget.
UML leader Surendra Pandey argues that if political financing is to be made transparent, the government should provide financial support based on the votes received by each party.
Former Finance Secretary Rameshore Khanal argues that political parties should seek donations from Nepali citizens, which would consequently make them more accountable to the public.
Achyut Wagle, a professor of economics at Kathmandu University, notes that while government funding for parties is a viable option in an ideal democracy, it is questionable whether a country like Nepal can do it honestly.
Says Wagle: “It is more important to have transparency in political financing. Selling political positions for money has become the norm, and we need to ensure a democracy where businessmen cannot buy their way to power.”

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The business of politics

<figure><img width="2481" height="3464" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161148/636d1d399c7e80680e0af39fjpeg.jpg" alt=""/><figcaption>Illustration: SWORUP NHASIJU</figcaption></figure>Nepal’s richest who used to bankroll parties from the sidelines in exchange for personal, professional and policy favours, have decided it makes more sense to <a href="https://archive.nepalitimes.com/article/nation/bulldozing-democracy-in-nepal,4184" target="_blank" rel="noopener noreferrer">enter politics themselves</a>.
Money, not political competency, has therefore become a deciding factor in who is ultimately elected into leadership. But because politics and ill-gotten wealth feed each other, governance suffers.
Nepal’s political parties, meanwhile, have to fudge <a href="https://www.nepalitimes.com/latest/is-democracy-too-expensive-for-nepal/" target="_blank" rel="noopener noreferrer">poll spending</a> because of expense limitations set by the Election Commission.
The Nepali Congress (NC) listed only Rs48.7 million in election expenses, the UML Rs20.9, while the Maoist Center just Rs8.3 million in 2017. The NC also listed Rs20.9 million in donations, while the UML said it got only Rs40.6 million from businesses.
Read also: <a href="https://www.nepalitimes.com/here-now/the-business-of-politics-undermines-nepals-democracy/" target="_blank" rel="noopener noreferrer">The business of politics underminds Nepal's democracy</a>, Ramesh Kumar
In reality, a study by the Election Observation Committee shows that campaigning expenses were vastly underreported in 2017. It estimates that parties spent Rs51 billion in just local elections, and Rs46 billion was used to garner votes for the federal Parliament. 
“I had never seen so much cash in one place before,” said a member of the NC’s election-targeted finance management committee. “We saw businessmen come and go with suitcases full of money. It was strictly cash. They did not want to leave a paper trail.”
Political parties have also relied on membership fees to raise funds. The UML raked in Rs41.9 million through such levies in the last fiscal year. But that is nowhere near enough to cover campaigning costs. This means falling back on big business for funding.
Rajyalaxmi Golchha has publicly stated that she became a UML MP by paying the party Rs70 million. Businessman Moti Dugar of the UML was Minister of State in K P Oli’s government, while <a href="https://www.nepalitimes.com/latest/what-is-delaying-nepal-cabinet-expansion/" target="_blank" rel="noopener noreferrer">Umesh Shrestha of the NC</a> is a state minister in the current government.
Nearly all big business houses set aside ‘facilitation fees’ to donate to parties across the political spectrum to ensure protection.
“The business community fears that a party which has not been placated may make things difficult if it comes to power,” says a prominent FNCCI member.
Read also: <a href="https://www.nepalitimes.com/latest/the-business-of-politics-in-nepal/" target="_blank" rel="noopener noreferrer">The business of politics in Nepal</a>, Shekhar Kharel
Numerous laws like the Banking and Financial Institutions Act, the Medical Education Bill, or the Foreign Investment and Technology Transfer Act were passed by businessmen MPs in parliamentary committees.
<a href="https://www.nepalitimes.com/editorial/red-rice/" target="_blank" style="background-color: rgb(255, 255, 255); font-size: 15px; letter-spacing: 0.01em;" rel="noopener noreferrer">Tycoons</a> often pay political leaders under the table to get them into the legislature under the proportional representation mechanism.
Businessmen say they have no choice because they are tired of party extortion ahead of every election. Politicians use brokers to raise cash, and they are promised a pound of flesh.
The blurring of the boundaries between business and politics undermines democracy and development, says political science professor Krishna Khanal.
"I don’t blame the business community because it is entirely up to the leaders to decide whether to take their money or not. Trouble is, politicians have no integrity,” Khanal adds.

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Purchasing power

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e8a9c7e80680e04fcbejpeg.jpg" alt="" width="1200" height="1584"/><figcaption>Illustration: BHANU BHATTARAI</figcaption></figure>When Prime Minister KP Oli and NCP co-chair Prachanda had a luncheon meeting at the home of business tycoon Durga Prasai last year, a photo posted on social media (pictured below) went viral spawning memes and widespread ridicule. The word ‘marsi’ for the red rice they were seen eating entered the Nepali lexicon as a <a href="https://www.nepalitimes.com/from-the-nepali-press/whats-so-funny/" target="_blank" rel="noopener">synonym for sleaze</a>.This was not the first time politicians have been wined and dined by captains of industry, nor were Oli and Dahal the only leaders to do so. Such politico-business nexus has been standard operating procedure no matter what form of government Nepal has had in its history. The only difference is that these days they do not even try to hide the collusion.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e8d9c7e80680e04fcbfjpeg.jpg" alt="" width="640" height="427"><figcaption> </figcaption></figure>Private medical colleges are a glaring symbol of this symbiosis. Durga Prasai was accused of attempting to lobby for laws to open his B&amp;C Medical College in Jhapa. In fact, medical colleges have become such a lucrative way to rake in money that political connections are essential for those investing in this medical-industrial complex.Read also: <a href="https://www.nepalitimes.com/editorial/red-rice/" target="_blank" rel="noopener">Red rice</a>, Editorial<a href="https://www.nepalitimes.com/from-the-nepali-press/whats-so-funny/" target="_blank" rel="noopener">What's so funny?</a>, Nepali Times<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e8f9c7e80680e04fcc0jpeg.jpg" alt="" width="1050" height="652"><figcaption> </figcaption></figure>Businesses provide politicians with the funds they require at election time, the intention being that they will extract their pound of flesh when the politician comes to power. "This negative culture of paying politicians and influencing policy is growing in Nepal, and is at the centre of the corruption epidemic," says political scientist Krishna Khanal.The <a href="https://www.nepalitimes.com/here-now/the-power-and-pull-of-pathibhara/" target="_blank" rel="noopener">death of Ang Tsering Sherpa</a> of Yeti Airlines in a <a href="https://www.nepalitimes.com/latest/helicopter-carrying-tourism-minister-crashes/" target="_blank" rel="noopener">helicopter crash in February</a> was a big blow to Prime Minister K P Oli, who had close personal dealings with him. Sherpa served as a fixer for Oli, and bagged coveted real estate and other deals for his conglomerate in return.Sherpa allowed the UML and now NCP to work out of his Ring Road villa. Last month, Oli inaugurated a monastery (pictured below) in Sherpa’s memory in Lumbini, and appointed relative Dawa Futi Sherpa ambassador to Spain. Sherpa's company Thamserku has leased several hectares adjacent to Narayanhiti Palace, which the Attorney General's  report says cost the government Rs5 billion. The lease renewal gives Thamserku the upper hand.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e919c7e80680e04fcc1jpeg.jpg" alt="" width="640" height="320"><figcaption> </figcaption></figure>NCP leaders now often meet at the house of businessman Capt Rameshwar Thapa, and that was where negotiations for the <a href="https://www.nepalitimes.com/here-now/one-body-two-heads/" target="_blank" rel="noopener">party’s unification</a> took place last year. Construction contractor Sharada Prasad Adhikari is untouchable because of his proximity to Pushpa Kamal Dahal -- even though most of his projects are abandoned half-complete.Dahal is also known to hobnob with businessman Ajeya Raj Sumargi, who often acts as a frontman for the politician’s business dealings. Sumargi's Nepal Satellite Telecom got a license for cheap and has refused to pay Rs740 million in taxes it owes to Nepal Telecom. There is political pressure on many organisations to legitimise Sumargi money transfers into the country without disclosing their source. But due to political pressure most investigations are stalled.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e939c7e80680e04fcc2jpeg.jpg" alt="" width="640" height="770"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e959c7e80680e04fcc3jpeg.jpg" alt="" width="333" height="316">Nepal Communist Party co-chair Pushpa Kamal Dahal Prachanda with businessman Ajayraj Sumargi during an inauguration of Prasad Homes in Pashupati (left) , Kathmandu and at the factory of Himalaya's Spring Water in Rasuwa district (right). Read also: <a href="https://www.nepalitimes.com/opinion/absolute-power-numbs-absolutely/" target="_blank" rel="noopener">Absolute power numbs absolutely</a>, Damakanta JayshiThere are many other examples of what critics call ‘crony communism’ which has  flourished especially after the NCP government took power. The impunity and corruption associated with this style of governance has made the neo-rich richer, and the Nepali middle class sink into poverty."When the distance between politicians and businesspersons is blurred, policies are made not in the favour of the general public, but specific interest groups," admits Yubaraj Gyawali, who himself is an NCP leader. "That is where the plunder of the country's resources for personal benefit begins."After Nepal’s sugar barons convinced the government that imported sugar was harming domestic industry, politicians first raised the taxes on imported sugar, then completely banned it at the behest of business. The price of sugar soared immediately from Rs65 to Rs100 per kg. The new budget also protects domestic tea, coffee, dairy producers as well as the footwear and cement industries -- even when domestic cement is 30% more expensive than Indian cement, and double the cost of the same grade of Chinese cement.Read also: <a href="https://www.nepalitimes.com/editorial/crony-communism/" target="_blank" rel="noopener">Crony communism</a>, Editorial<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e979c7e80680e04fcc4jpeg.jpg" alt="" width="1050" height="838">All this is, of course, nothing new. UML Finance Minister Bharat Mohan Adhikari was criticised in the 1990s for serving the interests of businesses. Adhikari’s Finance Secretary Rameshwor Khanal resigned then during a budget formulation process, accusing industrialist Binod Chaudhary of exerting undue pressure on state policy. Chaudhari is now Nepal’s only dollar billionaire, #1349 on the Forbes List of the world’s wealthiest men, and has just wangled a license for CG Telecom.Real estate broker Shobhakanta Dhakal is also in the news for transferring a part of public property in Baluwatar to NCP general secretary Bishnu Poudel. Khanal is influential enough to gain a berth in the UML’s list of proportional representation candidates in the 2017 election. Poudel claims to have bought the land, but critics claim it was transferred to his name for free in return for unspecified favours.Nepal may have gone from monarchy to republic and seen many changes in governments, but that does not seem to affect Deepak Malhotra and his businesses. He accompanied PM Oli on visits to China, Cambodia, and Vietnam. Even while he was being investigated for involvement in the gold smuggling racket, Malhotra was leased airport real estate to build a commercial complex. (see box)."If a country's democracy is well developed, then a politician's career plummets if he or she is seen to have unethical dealings with business," says former Finance Secretary Rameshwor Khanal. “That is not the case in Nepal.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e9a9c7e80680e04fcc5jpeg.jpg" alt="" width="640" height="251"><figcaption> </figcaption></figure>Businessmen like Suraj Vaidya of the Vaidya Group, Chamber of Commerce President Rajeshkaji Shrestha, former NRN president Upendra Mahato, and construction magnate Madan Adhikari all have multifarious political connections. Some freely admit that being close to power is the only way to do business in Nepal.Even opposition leaders like the NC’s Sher Bahadur Deuba have close links in the business community, although he is not with them much these days because he is out of power. Deuba was embroiled in controversy for trying to rush a contract for the Kathmandu-Tarai highway to the Indian company IL &amp; FS, and was also accused of pressurising bankers to waive almost Rs2 billion in loans taken by hotelier Piyush Amatya.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e9c9c7e80680e04fcc6jpeg.jpg" alt="" width="640" height="345"><figcaption> </figcaption></figure>Nepal’s tycoons are now not satisfied with just influencing politicians, some are becoming politicians themselves. Rajyalaxmi Golchha became a member of parliament through then UML’s PR quota, and publicly admitted she paid Rs70 million to the party for the honour. Many other businessmen in Parliament today have also paid their way into the legislature.Punarjan Acharya a former political adviser to the NC is aghast. "This growing unhealthy nexus between businesspersons and politicians does not just hurt the economy, it puts democracy itself in danger," he says.Read also: <a href="https://www.nepalitimes.com/editorial/illiberal-ills/" target="_blank" rel="noopener">Illiberal ills</a>, EditorialNepal's only international airport hostage to business interestsSharad OjhaIn December 2018, PM KP Oli declared that Tribhuvan International Airport would be made a "boutique airport." However, a 5-storey building in front of the airport, built not just against 'boutique' aesthetics but also against regulations, makes a mockery of his declaration.The building is constructed by 'Rasuwa KD Joint Venture' company, owned by controversial businessman Deepak Malhotra, alleged gold smuggler Bimal Poddar, and MP from Rasuwa, Mohan Acharya. The company was supposed to construct a parking lot, a modern park, a waiting area, a playpen for children, and other infrastructure. But except for a tall building and a parking lot that is highly inconvenient to arriving passengers, nothing else has been constructed.After much protest from airport officials themselves, an investigation committee was formed under the airport's Deputy Director, Jagannath Niraula. The committee submitted its report in April 2019. The report concluded that the building had been constructed against agreements and should be demolished if needed, and that its impacts on airport security should be investigated.Read also: <a href="https://www.nepalitimes.com/banner/try-visiting-nepal/" target="_blank" rel="noopener">Try visiting Nepal</a>, Sewa BhattaraiBut more than a month later, the recommendations have not been implemented. "We know the building goes against regulations, but what can we do if the person we are supposed to investigate hobnobs with the Prime Minister?" says an engineer who did not want to be a part of the investigation committee. He was referring to Malhotra, who is seen accompanying PM KP Oli on many international visits.Malhotra's company had started enjoying impunity after Lokman Singh Karki became the head of Commission for the Investigation of Abuse of in April 2013. Anyone who dared question his company was called for questioning by the CIAA instead. But even two and a half years after Karki was deposed, Malhotra's influence continues to grow stronger through his associations with even higher political connections. He evades investigation despite being accused of VAT corruption and gold smuggling.Read also: <a href="https://www.nepalitimes.com/opinion/kathmandu-airport-is-nepal-in-a-microcosm/" target="_blank" rel="noopener">Kathmandu Airport is Nepal in a microcosm</a>, Anil Chitrakar

The business of politics undermines Nepal’s democracy

In the very first page of the first chapter of Nepal 2043: The Road to Prosperity are two maps. The first places Nepal right at the epicentre of Asia, and in the second the Kathmandu is at exactly the midpoint between Mumbai and Beijing. With his trademark optimism, author Sujeev Shakya says Nepal is not land-locked but land-linked to three billion people in China and India. We just need those two economic engines to pull us in the same direction. ‘With China and India becoming the two largest economies in the world in the next two decades … Nepal is the most valuable piece of real estate in the world,’ Shakya writes. For one thing, Nepal does not look beyond India and China for tourism — with the right policies it can attract millions of tourists just from those two countries. Nepal is set to graduate from a low- to a middle-income country by 2026 and to a high-income country in 2043 — hence the name of the book. The year 2043 in the Bikram Sambat calendar is also 2100 — a new Nepali century. The book delves into the past, present and future of Nepal and analyses enablers including hydropower, a fundamental transformation of which will drive the 2043 goal. The commoditisation of electricity will be the biggest transformation. Nepal can deploy ‘Cyber Gurkhas’ to attract foreign investors with the management of data centres with climate friendly renewable energy. Access to technology such as precision agriculture, a data-driven approach to farming to improve food production, reduce environmental impact and enhance profitability could be Nepal’s strategy into 2043 and beyond. ‘Earlier, we needed ploughs and strong hands in agriculture. Now, you need a computer and strong fingers,” Shakya writes, citing a neighbour’s son who inspects his crops from drone cameras. A farmer in an Ilam teashop tells the author he asks AI questions in Nepali, and it answers promptly. The biggest enabler of all is Nepal’s young demography with 62% of the population in the active 15-60 age bracket, while 28% are younger than 14. Nepal’s dependency ratio has dropped to the lowest in history with 100 Nepalis having to support 62 dependents. But this demographic dividend window is closing. Nepal’s total fertility rate declined from 2.62% in 1981 to 0.92% in 2021 — below replacement level. We have less than 30 years left to make the best use of the youth, many of whom are currently studying and working abroad. Nepal’s biggest resource, therefore, is its diaspora spread across the world who send home $20 billion a year. Migration is not just a necessity but an aspiration for many Nepalis, and they are an important source of contacts, investment and soft power. This young and educated group has taken advantage of connectivity and digitisation in all arenas of national life. TikTok and Instagram have become e-commerce platforms, or mobile app-riven digital services. Nepal’s software companies exported over $1 billion worth of IT products last year. Next we need a change in the bureaucratic mindset to eliminate paper and manual processes, which would also contribute to reducing corruption. Shakya comes up with many revelations: 81% of Nepalis live in houses they own, much higher than most other South Asian countries which means higher disposable income. Nepal has the highest tax-to-GDP ratio in South Asia. The banking sector is twice the size of Bangladesh despite Nepal having just one-fifth of its population. In 2021, 12.62% of the population had demat accounts in Nepal, while India had only 5.32%. For every five male investors, there are four women in Nepal while it is 10:1 in India. With such figures and prospects, how come Nepal just went through a violent uprising that took the shortest time to topple a democratically-elected government in modern history? One early chapter of 2043 is actually dedicated to how Nepalis have always thrived on chaos. When people faced up to 20 hours of power cuts a day, people worked around the load-shedding schedule, woke up at ungodly hours to cook and stock up on inverters. They did not put up a fight, or even protest. ''Generally, Nepalis are used to taking things lying down, and perhaps this also needs to change,' says Shakya, writing that line before last month’s uprising. ‘On the one hand, some of these issues speak volumes about the average Nepali’s patience and perhaps optimism that things will change in the long run. On the other hand, one is also forced to wonder how much longer they will be able to put up with unfavourable conditions if things don’t change.’ It does seem Nepali had enough with corruption, governance failure and political apathy to the concerns of ordinary people. The final chapter lists the non-negotiables to realise the 2043 Nepal Roadmap: democratic values and freedom of speech, a capitalist welfare state and socio-political transformation to tackle corruption and impunity. The book notes, ‘Countries transitioning to democratic rule experienced a 20% increase in GDP over a 25 year period compared to what they would have achieved under authoritarian regimes. After the end of the Shah rule in 2006, Nepal’s GDP rose from US$10 billion to US$44 billion by 2024.’ The government’s Vision 2030 document projects Nepal’s GDP at US$100 billion, and the Vision 2043 estimates that it will be a US$423 billion economy with a per capita of US$12,100. However, it will need more than optimism and practical action to make these projections real. China and India loom large throughout the book with examples of small city states like Singapore which have taken advantage of their strategic location. Despite the tension between India and China, the two will have to collaborate given the inherent advantages. China has replaced the United States as India’s biggest trading partner. Sujeev Shakya is a great admirer of former Singaporean diplomat and author Kishore Mahbubani, and he has written a blurb for the book. He quotes Mahbubani saying that for the past 2,000 years, apart from the last two hundred, Asian countries have dominated the world, and it is quite natural that the world’s economic centre is returning to Asia. And Nepal is strategically placed to make the most of it because of its location between two of the world’s fastest growing economies. We just have to get our politics right, and have a strategy for equitable growth in the new Nepali century.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251016091052_78b2d1495d59cd492a17693e0e770b65230c7cb749393ac6643f4676b73832ef.jpg" data-media-id="editor_0" data-image-id="20251016091052_78b2d1495d59cd492a17693e0e770b65230c7cb749393ac6643f4676b73832ef" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Sujeev Shakya book details NT"></figure>

Retrofitting Nepal for future shocks

In the aftermath of the GenZ protests last month, as new PM Sushila Karki chose the first members of her Council of Ministers, youth collectives urged that it reflect the country’s diversity by including women, youth and people from various ethnic and socio-cultural backgrounds.&nbsp;
It took another couple of weeks for Karki to include &nbsp;bureaucrat and public health expert Sangeeta Mishra as &nbsp;Health Minister in her next tranche of ministers. Almost immediately, people dug up a video of Mishra calling herself “Nepali, but a native Indian”.
She was telling it like it was: Mishra is a naturalised Nepali citizen. But there was outrage in the ultra-nationalistic cybersphere. Mishra’s name was withdrawn from the list of ministers, with government officials citing an ongoing investigation at the CIAA.&nbsp;
With her Cabinet still incomplete a month after taking office, Prime Minister Karki was preparing to induct GenZ as ministers. A leak in the media floated the names, one of which was of Tashi Lhazom, a climate activist and filmmaker from Humla’s Limi Valley.&nbsp;
Almost immediately, social media erupted with discriminatory, xenophobic and misogynistic epithets against her: that she supported a separatist movement, that she was a foreign agent, that her citizenship was disputed, that she did not ‘look’ or ‘speak’ like a Nepali.&nbsp;
Political figures like Gyanendra Shahi, a prominent voice calling for the restoration of a Hindu monarchy, added fuel to the fire by making bigoted and false remarks about her heritage.
The former Commissioner of the National Human Rights Commission, Mohna Ansari, wrote on social media that it was shameful to question Lhazom’s identity: ‘Ms Tashi Lhazom is as Nepali as you are. Our society’s ugliest face and biggest flaw is doubting our own. Real patriotism embraces diversity — fake nationalism must end.’
Ansari, a human rights lawyer and activist, has also often been subject to Islamophobic and derogatory comments on digital platforms. &nbsp;
In response, the Indigenous GenZ Collective released Lhazom’s Nepali citizenship certificate to debunk the mistruths spreading on digital as well as mainstream media.
What makes a Nepali? What does a Nepali look or sound like? Who is a Nepali?
‘Had my name been Tashi Poudel, Thapa, Bhattarai or Ghimire, this would not have happened,’ Lhazom said in an interview with Kantipur following an avalanche of bigotry against her. ‘They questioned me because I do not look Nepali, or speak Nepali like a Khas. Because it is not my mother tongue.’
It is an indictment of Nepali society that indigenous Nepalis have to present proof, at the slightest inconvenience of mostly the dominant groups, of being a citizen of this nation simply because they might not fit into an imagined idea of Nepali nationhood by virtue of physical appearance, speech, geography, or faith.
And while we celebrate the successes of Nepal-born naturalised foreign citizens (some now hold elected office in the US) we refuse to afford the same respect to naturalised Nepali citizens, and those born in Nepal to excluded groups, nor do we expect them to work in the national interest if they are given responsibility to govern. And women are singled out twice as much for scrutiny.
Then cyber Nepal went into a tizzy when videos appeared of a biker’s group clad in black t-shirts emblazoned with the acronym ‘TOB’ which was interpreted to stand for ‘Tibetan Original Blood’ and linked to the Free Tibet movement.
The accusations snowballed into disinformation, xenophobia, and even calls for violence against Nepalis of Tibetan heritage and the Tibetan community in Nepal.&nbsp;
In the aftermath of the September protest, the hope was that politics and the bureaucracy would finally be rid of orthodox political actors. But first, we as a nation need to collectively examine the biases and bigotry that exist in Nepal’s socio-cultural space.&nbsp;
Otherwise, Nepal’s multiculturalism will be limited to just words in the Constitution and political tokenism.
No one who is in government now or in future can be expected to be completely free of subjective opinions, ideology, affiliation to a cause, or prior activism. And such criticism falls disproportionately on activists, advocates, and members from underserved and underrepresented communities.&nbsp;
One cannot be apolitical and hope to participate in politics, and as we move forward to rebuild the system it must not just reflect diverse communities, but also celebrate diversity of thought and beliefs.&nbsp;
Resorting to ethnocentrism, racism and chauvinism with conspiracy theories and discriminatory dog-whistling about fellow citizens is a disservice to Nepali nationhood. It is Nepal’s diversity that makes us strong.&nbsp;
Shristi Karki

What makes a Nepali?

We were used to getting stuck in Kathmandu’s notorious traffic with gas fumes and horns blaring. We are still stuck in traffic, but now it is mostly the quiet hum of EVs, and street-level air is noticeably cleaner. Alongside Norway, Nepal has the highest combustion-to-EV conversion rates in the world. And we are not even a middle-income country yet. How did we get here?&nbsp; For the first time in Nepal’s history, 2025 saw an unprecedented turn of events: two back-to-back auto shows a week apart in August, independent of each other. This was timed for the warm up to the Dasain season. &nbsp;&nbsp; The first auto show 6-11 August was the <a href="https://naimanepal.org/mobility-expo" target="_blank">NAIMA Mobility Expo 2025 </a>by the newly established Nepal Automobile Importers and Manufacturers Association which saw 35 new models, many of them EVs with 50 participating brands like Toyota, BYD, Hyundai, Kia, MG, Mahindra, Omoda &amp; Jaecoo, Proton and Leapmotor.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_d8c03f5141f0086814d866543af4d95310f340a7191363e4705aedda8e4b73d0.jpg" data-media-id="editor_1" data-image-id="2025101711108_d8c03f5141f0086814d866543af4d95310f340a7191363e4705aedda8e4b73d0" data-rendition-name="original" width="1770" height="1097" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  The exhibition had a strong focus on two-wheelers aimed at affordable and easy mobility in a town now known for long traffic jams (see report). NAIMA attracted a record 100,000 visitors in six days.&nbsp; The second one was the Nepal Automobile Dealer’s Association Auto Show 2025 (<a href="https://youtu.be/emSd0mUuMjU" target="_blank">NADA</a>) to address the growing demands for cars and two-wheelers. It was a natural expression of new market forces at work, on one hand, and popular taste, on the other — one influencing the other.&nbsp; This year’s NADA Auto Show was its 17th iteration, and carried a hefty legacy: exhibiting a contemporary lineup from manufacturers such as Tata, Suzuki, Xpeng and Nammi, but also classics for vintage car lovers like the 1928 Ford Model A and a rare 1955 Austin Princess Dm4 sedan.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_dda7d264ddb12448cc10d9b1cb699632eee975741fc4c56055e4df904579c34f.jpg" data-media-id="editor_3" data-image-id="2025101711108_dda7d264ddb12448cc10d9b1cb699632eee975741fc4c56055e4df904579c34f" data-rendition-name="original" width="1381" height="848" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  It also showcased the Deepal eVTOL (a 2-seater drone), and a humanoid robot with dog. Curious onlookers at Bhrikuti Mandap thronged the show with footfall crossing 170,000.&nbsp; Earlier this year, I had traveled to attend India's largest auto show, the <a href="https://youtu.be/OgIIvXx6yOM?si=zNmMgklzCJpagTye" target="_blank">Bharat Mobility Global expo</a> in January in New Delhi. It was part of a <a href="https://youtu.be/GT6LBKiJvyg?si=r7YaxahjSAnsIfBY" target="_blank">roadtrip</a> from one capital to another with BYD Nepal on a Dolphin. The journey took three days through Bhairawa and then the Lucknow-Agra Expressway, covering a distance of 1200km one way.&nbsp; The drive through the horrid Narayanghat-Butwal corridor alone was testimony that EVs are no longer fragile and could handle a beating. And while both Nepal's economy pales in comparison to India, it was evident that the private passenger segment is well on its way to electrification. More than 70% of all vehicles sold in Nepal last year were electric. Sales representatives are unanimous: inquiries for EVs are at an all-time high and overshadow demand for ICE (Internal Combustion Engine) vehicles. Besides four-wheelers, a fast-growing proportion of scooters were also electric.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251017111016_e4cd988ca915ddd283a86d48fac332f22f98ff776b3d22391e10156ad56d7a1a.jpg" data-media-id="editor_6" data-image-id="20251017111016_e4cd988ca915ddd283a86d48fac332f22f98ff776b3d22391e10156ad56d7a1a" data-rendition-name="original" width="1389" height="863" loading="lazy" alt="Electric cars in Nepal"> </figure>  I have spent the last two years <a href="https://youtu.be/256YQa37Ol8?si=Sv1wQ8EdvgMCiTM_" target="_blank">reviewing</a> many of these EVs. The days of batter-powered cars being small toy cars, with sub-par build quality and the range of golf carts have long gone.&nbsp; Fit and finishing in both Chinese and Indian EVs are comparable to established brand names even in Japanese and European markets. But most significantly for us in Nepal, battery technology and range have made inter-city travel on our highways imaginable. The media sometimes portrays Nepal as a prime testing/dumping ground for EVs due to lack of regulation and the proximity to the world’s largest EV exporter (China) and our tough geographical conditions. That is just a part of the story. What actually stands out is the incredible appetite for risk among Nepali buyers.&nbsp; Since the Covid pandemic charging infrastructure has spread across the country. My early trips between Kathmandu and Pokhara saw the possibility of topping up with just one charging gun at the <a href="https://rsr.com.np/" target="_blank">Riverside Springs Resort in Kurintar</a> – and I would have to wait in line, or the charger simply would not be working.&nbsp; These days, by the time I cross Kurintar from Koteswor in my Kona, I will have passed at least 10 charging stations with multiple guns. &nbsp; On my <a href="https://www.youtube.com/@casuallyannoyeddriver" target="_blank">YouTube reviews</a>, people from across the globe ask about range and handling EVs on poor road conditions like ours. The occasional skeptics also leave comments like: ‘If this works in the higher altitudes and mountainous roads of Nepal, then it should be a breeze down here in the flats of Australia and/or hills around Auckland!’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251017111016_8b4fbe59884538849be6428eb2ce9249627a8970ed9ef4cd3c792682bf26dbed.jpg" data-media-id="editor_10" data-image-id="20251017111016_8b4fbe59884538849be6428eb2ce9249627a8970ed9ef4cd3c792682bf26dbed" data-rendition-name="original" width="1139" height="787" loading="lazy" alt="Electric cars in Nepal"> </figure>  SATURATION? However, both the NAIMA and NADA auto show also confirmed that we could be hitting a peak EV. From having just one car in one budget segment, there are now multiple alternatives stretching from the entry of below Rs3 million to the premium and high-end Rs 10 million price point.&nbsp; Furthermore, the price wars on EVs that started in China a year ago have also trickled across to Nepal. Models such as the <a href="https://youtu.be/3wFN2I81Tq0?si=T6L4SAfRpoyNNvYC" target="_blank">MG S5</a>, Nammi Vigo, BYD Atto 2 (and 1) and <a href="https://youtu.be/y214kWbWTc4?si=bIevanDZEPQdkEs4" target="_blank">Deepal S05</a> saw aggressive pricing schemes and discounts that disrupted pre-existing quotas. Consumers can suddenly afford a lot more cars, and travel a lot further for a considerably smaller price tag.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_276afec1bdbd37497572939a4eada4bef74c9d075cd5851892c4dd1985edb9c5.jpg" data-media-id="editor_13" data-image-id="2025101711108_276afec1bdbd37497572939a4eada4bef74c9d075cd5851892c4dd1985edb9c5" data-rendition-name="original" width="1953" height="1107" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  However, booking numbers at both auto shows did not necessarily translate into actual deliveries. The fact remains that almost 80% of registered vehicles in Nepal are still two-wheelers, and GDP per capita stands at just $1500 — among the lowest in the world.&nbsp; This means that early first-adopters are first-time buyers, and the remaining customers in the market are more skeptical and less willing. But there are also those that are unlikely to consider the EV suitable to travel to off-road rural areas. For the average Nepali family, upgrading or purchasing a new car is no small decision. It happens in five years or more with resale values being a big determinant. The EV boom may be reaching saturation.&nbsp; Both NADA and NAIMA shows drove home the message that Nepal’s transport sector is on an electric fast-track, but the road ahead will be bumpy.&nbsp; Soon after the shows, the glacial debris flow on the Bhote Kosi knocked out the Rasuwa-Kerung border with China, and earlier landslides had already blocked the Koradi checkpoint. Manufacturers are now using the less convenient Korala border in Mustang. BYD, Leapmotor and Omoda &amp; Jaecoo have begun rerouting their vehicles to make up for delivery deadlines.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_62fd70a476656062005959c247b38178d8efabf8570c73929295c0a103ff4013.jpg" data-media-id="editor_14" data-image-id="2025101711108_62fd70a476656062005959c247b38178d8efabf8570c73929295c0a103ff4013" data-rendition-name="original" width="1438" height="1031" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  Although the distance from the capital to the Korala border (470km) is four times longer than from Rasuwa (128km) &nbsp;and Tatopani (112km), it is still considered faster and more cost effective than shipping via India using sea routes.&nbsp; And then Nepal was engulfed in turmoil after the youth-led protests of 8-9 September and its aftermath. Many automobile showrooms around Thapathali including Tata, Hyundai and CG were vandalised and torched.&nbsp; Sushila Karki leads a caretaker government till elections are held in March, and the unsettled situation will affect the economy and investment climate as well as the automobile sector. Arnav Upadhyay reviews automobiles and promotes road safety under the handle Casually Annoyed Driver on <a href="https://www.youtube.com/@casuallyannoyeddriver" target="_blank">Youtube</a>, <a href="https://www.tiktok.com/@casuallyannoyeddriver" target="_blank">Tiktok</a> and <a href="https://www.instagram.com/casuallyannoyeddriver/" target="_blank">IG</a>, and this monthly column Drive Line in Nepali Times.

Is Nepal reaching peak EV?

Nepali Times: You just climbed Mt Everest without oxygen and then skied down the mountain. How does one even train for something like that?&nbsp; Andrzej Bargiel: What made skiing down Everest possible was all the years of experience I’ve gained in high-altitude mountains. Spending a lot of time in the high mountains helps me read the snow, the conditions, and potential hazards. I need to ski often, especially in steep and exposed terrain, so that it becomes a place where I feel completely at home.&nbsp; I also climb regularly, I am an IFMGA mountain guide. I also run, ride a bike, and work out in the gym. Like in any endurance sport, I have to prepare my body for the demands of an expedition.&nbsp; What motivated you to do Everest? This was actually my third attempt on Everest. After many years of ski mountaineering and racing, I felt it would be great to use that experience to take on a meaningful project in the Himalaya. It’s about exploring what’s really possible, testing my limits, and seeing how far I can go. I was inspired by people like Davo Karničar, Fredrik Ericsson, and Hans Kammerlander, who showed that skiing in the high mountains can truly be done.&nbsp; What do you have to be most careful about when skiing at such high altitude? You really have to manage your energy well, because you need to be ready to spend many hours at very high altitude — even above 8,000 meters. Risk management is essential. You have to read the signals nature gives you and make the right decisions, choosing safe moments to move. The dangers are always there: avalanches, crevasses, extreme fatigue, and exposed terrain, so you have to stay fully aware and focused. Safety comes first, always. You also need to stay open to changing your plans, because in the mountains, things don’t always go the way you expect.&nbsp; Why did you choose autumn and not spring?&nbsp; Autumn is really the only season when you can think about making a full ski descent from the summit all the way to base camp. In the spring there’s much more ice left after winter, and the snow cover is broken. A full descent simply isn’t possible then, because too much rock and ice are exposed. Of course, in spring it’s easier to climb the mountain. The conditions are more stable, the snow is firmer, there’s less avalanche risk, and you don’t have to wade through deep snow. The autumn ascent is very complex and demanding, which is why so few expeditions attempt it. But in autumn, skiing becomes possible. Several meters of fresh snow fall on Everest’s slopes, covering the rocks and ice, and that transforms the mountain into something wild, beautiful, and most importantly skiable. What was your favourite part this time? The moment I remember most fondly was reaching the summit — and that first stretch just below the top, when I clicked into my skis and started moving down through surprisingly nice snow. It felt smooth and natural, a kind of free, easy glide down toward the Hillary Step. I could feel the movement, the flow, and at the same time this awareness that I was skiing from the highest point on Earth. It was just a really good feeling. The Icefall was another special moment. I felt from a skier’s point of view that it really worked. I could make my turns, and the descent itself was fun, technical, but a beautiful one too — full of variety, weaving through ice towers and seracs that looked incredible in the sunlight. It was challenging, but also just pure joy.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251015141012_e9e671e07b089a7d59e4b9ba34df993180ae2dfcae3786113a4d48c515427b3d.jpg" data-media-id="editor_0" data-image-id="20251015141012_e9e671e07b089a7d59e4b9ba34df993180ae2dfcae3786113a4d48c515427b3d" data-rendition-name="original" width="1365" height="2048" loading="lazy" alt="Andrzej Bargiel NT"> </figure>  And what was most challenging? The hardest moment came on 14 September, during our first summit push attempt. We were breaking trail in deep snow and reached the South Col in the evening. I already knew we wouldn’t be going higher that night, so I decided to stay there, to use the climb to acclimatise.&nbsp; But after that attempt failed, the team completely lost faith that the project could still succeed. Almost everyone started packing up, convinced it was over, nobody thought that the snow would stabilise enough.&nbsp; I skied down from the Col early the next morning in really good conditions, while the rest of the team descended on foot. Rebuilding belief within the team that it could still be done was the toughest part, mentally. It took me several days to bring that energy and motivation back, to make everyone believe again that we could try once more. What was your support crew like?&nbsp; I want to thank the whole team — all team members from Poland, all those who contributed to the project, all the sponsors, and the Seven Summit Treks crew, especially Dawa Sherpa, who had the courage to go to the top with me.&nbsp; In the end, his courage made it possible. Doing it alone would have been almost impossible. With him there, I felt safe, and that made all the difference. What potential for skiing do you see in the Himalaya?&nbsp; Huge. There’s massive potential here both for ski touring and for a more recreational form of skiing. In the Himalaya, there are so many mountains you can ski from, and they don’t have to be eight-thousanders.&nbsp; There is an incredible amount of snow even in the lower valleys during the winter, which makes it a really interesting place for skiing. You can find great powder and enjoy long, wide runs.&nbsp; The key, I think, is to keep developing local guiding structures. There should be more certified guides in Nepal, Sherpas gaining guiding qualifications, and a proper professional rescue service. That would definitely increase the sense of safety for both skiers and tourists coming to the mountains. I’d love to come back to the Himalayas one winter just to ski in those lower parts — in deep snow, on much longer and wider skis – that would be pure pleasure. At those lower altitudes, the fun can be so much greater, with a more relaxed, freeride kind of feeling.