<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

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

Visit Nepal in the monsoon

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

Nepal’s bubble economy

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>.

Flouting rules caused Saurya tragedy

French citizen Louis arrived in Nepal for the first time earlier this year, planning to <a href="https://nepalitimes.com/banner/the-abcs-of-a-winter-trek-in-nepal">trek the Annapurna Circuit </a>before heading down to Bardia to hopefully catch a glimpse of some<a href="https://nepalitimes.com/news/nepal-counting-its-tigers"> tigers</a>. Before he began his journey from Besisahar, Louis (who only revealed his first name) had imagined breathing crisp mountain air, and following the melodious gurgle of the Marsyangdi.&nbsp; Instead, he had to breathe fumes and dust all the way to Chame. Louis says he masked his face with a handkerchief: “It was not what I expected, this is not right.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a.jpg" data-media-id="editor_2" data-image-id="2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a" data-rendition-name="original" width="2419" height="1814" loading="lazy" alt="Manang trails NT 1"> </figure>  Many other trekkers are similarly disappointed as roads have been built along what used to be <a href="https://nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban">walking trails</a>. Manang and Humla are the last remote regions in the Himalaya to be connected to the national road network. &nbsp;Construction of the 87km Besisahar-Manang road began in 1994, but was stalled during <a href="https://nepalitimes.com/news/14-years-after-conflict-no-closure-in-nepal">the Maoist conflic</a>t, and finally finished in 2012.&nbsp; Most of it has not yet been blacktopped, and sections have been carved out of vertical cliff faces, making them treacherous. But it has allowed road access to Manang, a journey that previously took a week on foot.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000.jpg" data-media-id="editor_5" data-image-id="2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000" data-rendition-name="original" width="2400" height="1505" loading="lazy" alt="Manang trails NT 1"> </figure>  While the <a href="https://nepalitimes.com/opinion/the-road-out-of-nepal">road has improved access</a>, it has impacted on<a href="https://nepalitimes.com/here-now/trekking-in-the-time-of-climate-change"> trekking tourism </a>— the mainstay of Manang’s economy. The number of tourists visiting the scenic valley behind the Annapurnas grew from 21,245 in 2023 to 30,866 in 2024. The Annapurna Circuit is known for unique sights like <a href="https://archive.nepalitimes.com/news.php?id=9194">Tilicho</a>, one of the highest lakes in the world, the Thorong La pass that connects Manang to Mustang, and the valley’s own rich cultural heritage. Thorong La at 5,416m is the highest hiking pass in the world, and was used by locals for trade with Mustang before it became a <a href="https://nepalitimes.com/opinion/comment/lift-restrictions-on-upper-mustang">popular trekking route</a>. &nbsp; “For guests, the excitement of reaching Thorong La is now overshadowed by their disappointment of having to journey through dusty roads to get there,” says Manang lodge-owner Ongma Gurung. “That is the complaint we get the most.” <a href="https://nepalitimes.com/banner/tourism-that-treads-lightly-on-the-land">Local tourism </a>operators are trying to get the government to build alternative foot trails. But there have been delays due to a lack of budget.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa.jpg" data-media-id="editor_11" data-image-id="2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa" data-rendition-name="original" width="2419" height="1762" loading="lazy" alt="Manang trails"> </figure>  The Naso Rural Municipality has identified other routes along the Annapurna Circuit in Chyamche, Tal, and Khotro so trekkers can bypass heavy vehicles involved in the construction of the Manang-Marsyangdi Hydropower Project. “But the local government cannot do everything,” admits the chair Dhan Bahadur Gurung. “And for leaders in Kathmandu, Manang is out of sight and out of mind.” Munindra Jung Gurung represents Manang in the Gandaki Provincial Assembly, and says he has raised the issue in <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">Pokhara</a>. He is hopeful there will be a hearing. To be sure, the road is not all bad news. Locals benefit, the number of visitors has grown, and trekkers can now also save time and use it to explore <a href="https://archive.nepalitimes.com/news.php?id=5960">side valleys in Manang</a>, visiting the villages like Nar and Phu. Annapurna Conservation Area (ACA) chief Rabin Kadariya concedes that the road to Upper Manang was crucial to connect the remote region with the rest of Nepal, but adds: “We have built an alternative trail connecting Talgaun, and we will consult local communities about their priorities on other hiking trails.”&nbsp;