<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d121a9c7e80680e0a98bbjpeg.jpg" alt="" width="890" height="500"/><figcaption></figcaption></figure>The current questions about the separation of powers surrounding Chief Justice Cholendra SJB Rana and Prime Minister Sher Bahadur Deuba after <a href="https://www.nepalitimes.com/latest/nepal-govt-fills-cabinet-after-3-months/" target="_blank" rel="noopener noreferrer">the appointment</a> (and subsequent resignation) of Rana’s brother-in-law Gajendra Hamal as a minister in government has raised serious questions about the conduct of justices, as well as interference in the judiciary by Nepal’s political leadership.This seeming give-and-take between the PM and the CJ set off an outcry from within Nepal’s judicial community, political commentators and the mainstream media. The public also made its opinion known through charged discourse on social media.Rana, for his part, swiftly refuted allegations that he had proposed Hamal’s ministership, as did a spokesperson for the prime minister when the issue was raised during a House session ahead of the cabinet expansion. Meanwhile, those in the Nepali Congress (NC) blamed the opposition UML for being behind “baseless rumours”.But less than 48 hours since his appointment, Minister Hamal resigned, proving that the explanations of the PM and CJ did not hold water. Rana has subsequently faced growing <a href="https://www.nepalitimes.com/latest/nepals-lawyers-on-warpath-against-chief-justice/" target="_blank" rel="noopener noreferrer">calls for his resignation</a> from former chief justices, current justices of the court, as well as the Nepal Bar Association and the Supreme Court Bar Association.Justices and lawyers have been boycotting full court hearings called by Rana, as well as cases in the Supreme Court and other courts across Nepal since, affecting the judicial process.The Nepal Bar Association issued an ultimatum to Chief Justice Rana to resign, and protests, as well as calls for his impeachment, have been escalating when he failed to meet the deadline set before the Tihar festival.The controversy has exposed the transactional relationship between Nepal’s executive and judicial branches. However, what has been is that the nexus between political leadership and <a href="https://www.nepalitimes.com/latest/what-is-happening-to-nepals-supreme-court/" target="_blank" rel="noopener noreferrer">the Supreme Court</a> existed long before the current debacle.Political influence over the judiciary was seen when Chief Justice Khil Raj Regmi was appointed chairman of the council of ministers by the then CPN-Maoist government in March 2013, following the failure of Nepal’s Constituent Assembly to draft the Constitution after two term extensions.Since then, it has become commonplace for politicians to interfere with the courts and judges through the Judicial Council, hand out positions to those deemed favourable, block unfavourable judicial appointments in Parliament hearings, engage in ‘bench buying’ in the Supreme Court, and even attempt to impeach the Chief Justice for failing to cater to their demands.In fact, this is not the first time Deuba and Maoist leader Pushpa Kamal Dahal have tried to undermine the independence of the judiciary. In 2017, the NC-Maoist coalition government filed an impeachment motion against Chief Justice <a href="https://archive.nepalitimes.com/article/interview/a-woman-is-as-capable-sushila-karki,3375" target="_blank" rel="noopener noreferrer">Sushila Karki</a>, accusing her of interfering with executive decisions after she overturned the appointment of the Chief of Police.It was actually Justice Cholendra Rana who issued an order against <a href="http://archive.nepalitimes.com/blogs/thebrief/2017/05/05/sc-stays-impeachment/" target="_blank" rel="noopener noreferrer">the impeachment motion</a>, rejecting the interference over the judiciary by the executive branch. Rana also helped overturn K P Oli’s dissolution of Parliament in July which led to regime change and the five-party coalition under Deuba.The irony is that the same figure who was once hailed as the protector of the sanctity of the judicial process is now being held responsible for encroaching upon the dignity of the judiciary and tarnishing the reputation of the Supreme Court.By becoming an active collaborator in political and constitutional appointments, Chief Justice Rana has acted against judicial discipline, also contributing to eroding the principle of the separation of powers. The latest collusion between the PM and CJ has laid the precedent for unchecked political bargaining and the blurring of lines between the judicial and the executive branches.In August, Deuba ended the Parliament session in the midst of a budget debate to issue the ordinance to amend the Political Parties Act that allowed his ally Madhav Kumar Nepal to break away from the UML, form a new party and join his coalition. A little more than a month later, <a href="https://www.nepalitimes.com/latest/political-expediency-trumps-nepal-constitution/" target="_blank" rel="noopener noreferrer">he repealed the ordinance</a> to make way for this cabinet expansion.Issuing such an ordinance by suspending Parliament to benefit a particular person or party, and then repealing it once it had served its purpose, is a deliberate and cynical attack on the rule of law.What happened with Gajendra Hamal is evidence that the current leadership is running the state like a private company to perpetuate its own power – not an institution that serves the Nepali people.Deuba’s coalition has crushed the very foundation of our Constitution under the pretext of defending it. Prime Minister Deuba and Pushpa Kamal Dahal have found willing and enthusiastic co-conspirators in each other, using the judiciary to fulfil their individual agendas and destroying our democracy in the process.It is becoming increasingly clear that one of the primary reasons why Deuba and Dahal have orchestrated this political theatre is to garner support from within the judiciary to avoid being held accountable for war crimes committed when both were leaders of opposing sides in the 1996-2006 insurgency.Furthermore, the leadership is seeking to silence the international community on the <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/justice-delayed-justice-denied-transitional-justice,849" target="_blank" rel="noopener noreferrer">matters of transitional justice</a> by paving the way to clear their names of any involvement in further cases that might arise in court.Indeed, Maoist leader and <a href="https://www.nepalitimes.com/latest/speechless/" target="_blank" rel="noopener noreferrer">House Speaker Agni Sapkota faces a war crime charge</a> in the Supreme Court. Both Sapkota and Rana are members of the Constitutional Council, and Sapkota stands to benefit in the courts through his association with the Chief Justice.In 2018, the Maoist government rejected the nomination of Deepak Raj Joshi as chief justice in retaliation against his imprisonment order on Maoist cadre Chhabilal Poudel for the abduction and murder of Krishna Prasad Adhikari during the conflict in 2004. Adhikari, a resident of Fujel in Gorkha, had been accused by Maoists of spying on behalf of the state. Other judges involved in the case who ruled against the victim have all since been rewarded by the party.The Maoist war ended 15 years ago and <a href="https://www.nepalitimes.com/latest/nepal-runs-out-of-excuses-to-address-war-crimes/" target="_blank" rel="noopener noreferrer">Nepal’s transitional justice process is stalled</a>. Families of the 1,400 disappeared are waiting for the truth, victims of war crimes also want justice, and the thousands who were wounded, tortured, raped, or lost property during the conflict await compensation.And while the Supreme Court verdict seven years ago to amend the Enforced Disappearances Enquiry, Truth and Reconciliation Commission Act to prevent perpetrators of war crimes from being exempt from punishment has still not been carried out, the order to make Sher Bahadur Deuba the prime minister was implemented within 24 hours.Such is the failure of the judicial system to stand for transitional justice, and the two erstwhile enemies, Deuba and Dahal, are among the primary players stalling the process.Over the coming days, the Chief Justice may very well buckle under judicial and public pressure and resign. And while his exit is necessary to the preservation of the impartiality of the judiciary, the buck must not stop with him. The prime minister and other leaders of Nepal’s coalition are equally, if not more responsible for the dismantling of state mechanisms, and cannot be spared from consequences.In particular, the Nepali Congress, the party once synonymous with democracy now seems hell bent on demolishing it, and must be held accountable. The prime minister blatantly used the judiciary to fulfil partisan interests, and must have to answer for it.The judiciary is, without compromise, the foundation of a democratic system, and freedom, fairness and autonomy are its cornerstones. It is a source of great hope and is the last line of defense against the violation of individual freedoms and the constitutional rights of victims.The hopes and trust of millions of Nepalis rest upon the judicial system. As such, the sustainability of an independent judiciary depends upon the competence, empathy, and sincerity of the leadership within all institutions of the branches of government.The institution will crumble without public trust, and our democracy, achieved through the countless sacrifices by Nepali citizens over the years, will be reduced to just a showpiece on the mantle of Nepal’s history.Charan Prasai is a human rights activist and coordinator of Accountability Watch Committee.cprasai@gmail.com

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The real story in Nepal’s Supreme Court debacle

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161132/636d19aa9c7e80680e0ac831jpeg.jpg" alt="" width="640" height="699"/><figcaption>Illustration: Bhanu Bhattarai/Nepali Times Archive</figcaption></figure>Even though Nepal’s executive, legislative and bureaucratic arms suffer from over-politicisation, the judiciary and military have been relatively less affected. The current crisis in the Supreme Court has politicised the justice system and also dragged it into dysfunction.The Supreme Court has not held scheduled hearings, and courts across the country have been shut for three days after justices of the Supreme Court and the Nepal Bar Association called for boycotts demanding the resignation of Chief Justice Cholendra SJB Rana.Rana has more than a year left in his tenure, but has been embroiled in controversy after he allegedly lobbied for ministerial posts for a relative and crony in the <a href="https://www.nepalitimes.com/latest/nepal-govt-fills-cabinet-after-3-months/">coalition Cabinet of Prime Minister Sher Bahadur Deuba</a>.It was the Supreme Court’s verdict overturning the dissolution of the Lower House by previous prime minister K P Oli that <a href="https://www.nepalitimes.com/here-now/nepal-court-orders-deuba-to-succeed-oli/" target="_blank" rel="noopener noreferrer">put Deuba in office</a> on 14 July, heading a five-party coalition. Deuba himself is also implicated in the scandal after he agreed to make Rana’s brother-in-law Gajendra Hamal a minister earlier this month. Hamal resigned three days later.Even though party leaders have in the past two decades often bent Nepal’s Supreme Court to suit their interests, by pressuring the prime minister to <a href="https://www.nepalitimes.com/latest/100-days/" target="_blank" rel="noopener noreferrer">accept his own relative as minister</a>, Rana is seen to have crossed the red line and violated the doctrine of the separation of powers.Rana summoned other justices and lawyers on Tuesday and said that under no circumstances was he going to step down, and that he would rather face an impeachment motion in the House.However, there has been an intriguing silence from the <a href="https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/" target="_blank" rel="noopener noreferrer">top leadership</a> of the main parties about the fate of Chief Justice Rana. They seem to wish the problem will just go away, or Rana voluntarily resigns, so they do not have to take a stand.They do not want to annoy Rana because of the need to bargain over their own pending cases in the Supreme Court, but there is now intense pressure from the legal fraternity and the public to impeach him.Prime Minister Deuba of the Nepali Congress (NC) has not spoken in favour of impeachment, but is under pressure to do so from a rival faction within his own party. And even though it was Rana’s Supreme Court verdict that removed him from power in July, the UML’s K P Oli is against impeachment — saying that if Rana were to step down, five other justices who ruled against him should also resign.Others like Madhav Kumar Nepal of the United Socialists and Baburam Bhattarai of the Janata Samajbadi Party have cases pending in the Supreme Court in a real estate scam, and the Maoist Centre (MC) parliament speaker Agni Sapkota also has a war crime case against him.However, some have argued that the real issue here is separation of powers and stopping <a href="https://archive.nepalitimes.com/article/editorial/fusion-of-powers,3760" target="_blank" rel="noopener noreferrer">political interference in the judiciary</a>, and the Supreme Court having to step in to resolve political deadlocks in the executive and legislative branches.By taking their disputes to the Supreme Court as arbiter of last resort, Nepal’s leaders have handed over crucial political decisions to the Chief Justice and his benches. So much so that the apex court has been deciding who forms a government and who doesn’t — an issue that should be resolved by party strength in Parliament.The only way to remove Rana would be if he is forced to resign, or if 25% of the House move an impeachment motion against him, although it will take a two-thirds majority to actually indict him.<a href="https://www.nepalitimes.com/banner/non-government-of-nepal/">Non-government of Nepal</a>, Sonia AwaleWith so much politics, corruption and vested interested tied up with the political appointment of justices, there are some who question whether just removing Chief Justice Rana will solve the problem, because the rot goes much deeper.Even if Rana is forced to resign or is impeached, he will be replaced by Dipak Kumar Karki. Those who would benefit from Karki’s elevation to Chief Justice can be seen to be pulling strings from behind the scenes, and suspicions have fallen on the Maoist Centre’s Pushpa Kamal Dahal who is said to be close to Karki. Dahal appears to be trying to do with Karki what he tried to do to with appointing Kul Bahadur Khadka as army chief in 2009.The irony is that the same NC, MC, and dissident UML members that praised Chief Justice Rana for <a href="https://www.nepalitimes.com/here-now/supreme-court-puts-nepal-politics-back-on-track/" target="_blank" rel="noopener noreferrer">saving democracy twice this year</a> by his constitutional bench verdicts to restore the dissolved House, are now labelling Rana a villain. Oli’s UML criticised the Supreme Court heavily for that.The Maoists also vehemently opposed a Supreme Court decision in February to nullify the unity of the UML and Maoists to form the NCP, that Oli had welcomed.What all this shows is that politicians and their parties are wont to praise to high heavens justices when there is a decision in their favour, but berate the Supreme Court when it goes against their interest. That is what appears to be happening again: some parties want Rana to remain, while others want him to go.The only difference this time is that the anti-Rana forces in the judiciary, Bar and the government feel he went too far by allegedly lobbying for relatives and cronies to be included in the Cabinet. Even if he did talk the prime minister into agreeing to make his brother-in-law a minister, Deuba should have rejected it outright as interference.Instead, Deuba and Dahal both clarified that Hamal had been made minister from the NC quota and did not say anything about pressure from the chief justice. Why were Deuba and his coalition partners so eager to make Hamal a minister?  Was it because they wanted to keep Chief Just Rana in the good books to extract their pounds of flesh in future verdicts in cases involving them?Cholendra SJB Rana is Nepal’s 29th chief justice, but not the first to be embroiled in controversy. Even Sushila Karki, known for her firebrand independence, <a href="http://archive.nepalitimes.com/blogs/thebrief/2017/05/01/lady-justice/" target="_blank" rel="noopener noreferrer">faced an impeachment motion </a>by a NC-Maoist coalition government in 2017 because she did not agree to pass verdicts that favoured them on the appointment of a police chief.In fact it was Rana who trashed  that impeachment motion against Karki, saying it went against the spirit of the Constitution to file a the motion against the chief justice on such partisan grounds.There is a lot of politics tied up with whether Rana remains chief justice or is forced to step down. On 1 November, the Supreme Court is due to hear a case against Madhav Kumar Nepal and Baburam Bhattarai on the Baluwatar real estate scandal. Some see the magnified criticism of Rana as a way to put pressure on him to rule in their favour.It is clear that Rana’s departure will not be enough to herald a golden age of justice in Nepal. The same forces in the executive and judiciary that were <a href="https://www.nepalitimes.com/opinion/quid-pro-quo/" target="_blank" rel="noopener noreferrer">scratching each others’ backs</a> will still be up to their old tricks. Rana is not coming out of this smelling like roses, but neither are many of the other justices who want him to resign, nor the politicians who benefited from their appointments.It is now important that the political parties and justices who are at the root of this crisis vow not to violate the constitutionally-enshrined <a href="https://www.nepalitimes.com/latest/nepal-govt-fills-cabinet-after-3-months/" target="_blank" rel="noopener noreferrer">separation of powers</a>. This should not be about using Chief Justice Rana as a bargaining chip, but an opportunity to conduct far-reaching reforms within the judiciary.The boycott by lawyers and judges on Thursday affected hearings across the country and delayed justice being served. Urgent cases like those of habeas corpus have been left in limbo.Says ex-justice Prakash Wasti: “The ball is in the court of the Nepal’s politicians, whether to make the courts a place where justice is served, or where they serve themselves.”Read also:<a href="https://www.nepalitimes.com/latest/political-expediency-trumps-nepal-constitution/">Political expediency trumps Nepal Constitution,</a> Santa Gaha Magar

What is happening to Nepal’s Supreme Court?

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

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

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Walking, working, worshipping in Patan