<img width="800" height="924" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a29d09c7e80680e0458e9jpeg.jpg" alt=""/>After being lampooned for extravagant, but empty, promises and criticised for having nothing concrete to show for his first year as prime minister, <a href="https://www.nepalitimes.com/banner/olis-1st-year/" target="_blank" rel="noopener">K P Oli</a> has moved quickly to address two lingering legacies of the conflict and the constitution-writing process: <a href="https://www.nepalitimes.com/opinion/only-genuine-devolution-will-douse-separatism/" target="_blank" rel="noopener">sign a deal with C K Raut</a> to get him to abandon secessionism, and outlaw the hardline <a href="https://www.nepalitimes.com/here-now/its-a-crime-not-to-call-it-terrorism/" target="_blank" rel="noopener">Netra Bikram Chand (Biplav)</a> faction of the Maoists. Despite misgivings and cynical comments on social platforms, the Oli administration has also won applause for its new assertiveness and a renewed sense of purpose. Read also: '<a href="https://www.nepalitimes.com/?p=23156&amp;preview=true" target="_blank" rel="noopener">No closure</a>'In the 11-point agreement signed with Home Minister Ram Bahadur Thapa on 24 March, Raut has committed to accept Nepal’s sovereignty and unity as well as enter the democratic mainstream. That declaration has removed the threat of ethno-separatism from plains politics, meaning that moderate Madhesi parties can now no longer fall back on Raut’s secessionist rhetoric as a bargaining chip with Kathmandu.With his Cambridge education and work in IT, Raut brings with him international exposure and perhaps a cleaner, meaner brand of politics. Anger in <a href="https://www.nepalitimes.com/banner/from-rebels-to-rulers/" target="_blank" rel="noopener">Province 2</a> runs deep, and the mistrust of K P Oli may have grown among Madhesi parties because of last Sunday’s deal. As David Seddon reports from Province 2, unless there are real moves towards autonomy and devolution, there may very well be other Rauts. Read also: <a href="https://www.nepalitimes.com/opinion/only-genuine-devolution-will-douse-separatism/" target="_blank" rel="noopener">Only genuine devolution will douse separatism</a>, David SeddonThe surprise announcement last Sunday was not easily digestible to the opposition NC and other parties who accused Oli of a sellout. But the most vocal critic of the 11-point agreement were Oli's rivals within the NCP itself: <a href="https://www.nepalitimes.com/here-now/the-ship-of-state/" target="_blank" rel="noopener">party co-chair Pushpa Kamal Dahal</a> did not show it but was privately miffed that Oli had not kept him apprised, and Bhim Rawal’s main gripe was also that he was not consulted.However, we give Oli a thumbs up on this even if it is only for keeping the sensitive negotiations under wraps in the leaky corridors of Singha Darbar. Oli has shown that he likes to surprise people by pulling rabbits out of hats. For example, the <a href="https://archive.nepalitimes.com/article/nation/a-two-party-state,3968" target="_blank" rel="noopener">pre-electoral alliance in 2017</a> between the Maoists and the UML was also a bolt from the blue when announced.The agreement with Raut followed close on the heels of the Kailali District Court sentencing Resham Chaudhary to life imprisonment for the <a href="http://archive.nepalitimes.com/article/nation/ground-zero-in-Kailai,2538" target="_blank" rel="noopener">massacre of policemen in Tikapur</a> in August 2015, and his party the RJP-N subsequently pulling out from the governing coalition in protest. There also seems to have been some behind-the-scenes winks and nods between Baluwatar and the Supreme Court for Raut to be released from jail a day prior to the agreement.The wily Oli seems to have killed several birds with one stone with the agreement: he countered his public image of being <a href="https://www.nepalitimes.com/editorial/communist-capital/" target="_blank" rel="noopener">only talk and no walk</a>, neutralised the fallout of RJP-N leaving his government, and depending Raut’s future role, laid the groundwork for the next general election which will be won or lost in the Madhes.Read also: <a href="https://www.nepalitimes.com/here-now/its-a-crime-not-to-call-it-terrorism/" target="_blank" rel="noopener">It's a crime not to call it terrorism</a>, Kunda DixitOn Biplav, although the government split hairs by saying it was not a ban on the party, only on its criminal activities, the action essentially drives the Maoist faction underground. There could be two reasons for this: the ruling NCP wants to keep the door open for negotiations, or ex-Maoists in the ruling party used to be buddies of Biplav and just want to pretend to go after him. After all, Biplav is now using the same tactics of extortion and violence they used at the beginning of the insurgency in 1996. Even so, by publicly calling the Biplav party a “gang of looters” Prime Minsiter Oli has thrown the gauntlet.The Maoists were already semi-underground, and owned up to three bomb attacks in the capital last month that <a href="https://www.nepalitimes.com/banner/innocent-life-lost/" target="_blank" rel="noopener">killed one person</a>, and set fire to more than a dozen Ncell towers across the country. The government was challenged, and there was no other way for it to respond but warn that criminal activities will no longer be tolerated.With both the Raut deal and the warning to Biplav, the government now needs to show that it means business. A ruling party that can bring a separatist force to the negotiating table should easily be able to convince former comrades-at-arms to give up violence. While doing that, the government should also try to win the hearts and minds of the people of Province 2, expedite political devolution and remove grievances that feed extremism.As far as the Maoists are concerned, they are cashing in on disillusionment among the people with the NCP’s poor governance and corruption. The root cause of extremism is <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide/" target="_blank" rel="noopener">extreme inequality</a>, and unless there are moves towards social justice, Nepal will continue to be unstable. <h2>10 years ago this week</h2> The week that the NCP government made up of ex-Maoists signed an agreement with Madhesi activist CK Raut to renounce separatism, is as good a time as any to look back at <a href="http://archive.nepalitimes.com/issue/442" target="_blank" rel="noopener">issue #442 of 13-20 March 2019</a> which dealt the beginnings of unrest in the Madhes for more autonomy. Excerpt from <a href="http://archive.nepalitimes.com/news.php?id=15746#.XJSGlCIzaUk" target="_blank" rel="noopener">Editorial</a>:‘The continuing Tarai unrest, brewing discontent among groups demanding self-determination, intractable tension within the party leading the coalition, the inability of the state to protect its citizens and improve their lives -- these are just some of the crises Prime Minister Pushpa Kamal Dahal faces. And all the time, he has to prevent the peace process from being derailed and keep to the timetable on the constitution. The job would have been difficult even if there was a consensus government, the coalition partners loved each other, the bureaucracy was clean and efficient and there was no looming global depression. What makes Dahal’s job immensely more difficult is that his party is still behaving like it is in the jungles, and Kathmandu’s politicians act as if they are still in the era of self-centred coalition politics of the 1990s.<a href="http://archive.nepalitimes.com/issue/442"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a29d39c7e80680e0458eajpeg.jpg" alt="" width="510" height="815"></a>

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<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a29cc9c7e80680e0458e8jpeg.jpg" alt="" width="1400" height="933"/><figcaption>Bikram Rai</figcaption></figure>Just as the government was defusing one crisis by getting Madhesi activist <a href="https://www.nepalitimes.com/opinion/only-genuine-devolution-will-douse-separatism/" target="_blank" rel="noopener">CK Raut to renounce separatism</a> last Sunday, it was faced with another explosive situation created by breakaway Maoist radicals.The ruling Nepal Communist Party (NCP) is made up of ex-UML and erstwhile Maoists, but the faction that enforced a nationwide shutdown on Thursday calls itself the Communist Party of Nepal (CPN). Its leader <a href="https://www.nepalitimes.com/from-the-nepali-press/extortion-in-a-federal-state/" target="_blank" rel="noopener">Netra Bikram Chand (Biplav)</a> was mentored by NCP co-Chair and Maoist supremo Pushpa Kamal Dahal, and was once comrade-in-arms of Home Minister Ram Bahadur Thapa. Biplav is now using the <a href="https://www.nepalitimes.com/here-now/its-a-crime-not-to-call-it-terrorism/" target="_blank" rel="noopener">same tactics of violence and extortion</a> that the Maoists perfected at the start of the war in the 1990s.Read also: <a href="https://www.nepalitimes.com/?p=23164&amp;preview=true" target="_blank" rel="noopener">Two  extremities</a>, Editorial<a href="https://www.nepalitimes.com/opinion/only-genuine-devolution-will-douse-separatism/" target="_blank" rel="noopener">Only genuine devolution will douse separatism</a>, David Seddon Thursday’s shutdown affected movement on highways, closed schools and industries throughout the country, although the impact was not felt on traffic in Kathmandu Valley (pictured above). The closures were enforced with terror, but a <a href="https://www.nepalitimes.com/banner/innocent-life-lost/" target="_blank" rel="noopener">fatal bombing at Ncell earlier</a> this month had already convinced the public that Biplav meant business. The party has been openly extorting businesses as well as local governments across the country.Security sources told Nepali Times they had shared intelligence about CPN recruitment drives and militia training, and had warned the government about the group’s preparations ahead of the recent arson and bombing spree.Read also: <a href="https://www.nepalitimes.com/here-now/its-a-crime-not-to-call-it-terrorism/" target="_blank" rel="noopener">It’s a crime not to call it terrorism</a>, Kunda DixitNow, the NCP is finally taking the CPN seriously. On Tuesday the Cabinet outlawed the activities of the party, saying that it was a criminal entity, not a political party. Ministers said they were forced to take the step after the semi-underground group refused the government’s offer of talks. Dahal even declared that he faced a threat to his life from his former protégés.Biplav brushed off the ban, calling it ‘ridiculous’ and adding in a statement on Wednesday that ‘extortion was a fundamental right … necessary for the nation and people’.  Security forces have in the past month seized assault rifles and other weapons from CPN cadre in Dharan and Rupendehi, tracing them back to former guerrillas who absconded from UN-supervised camps with weapons after the ceasefire.By attacking a Malaysian telecom company and threatening Indian hydropower projects in Nepal, Biplav has thrown a direct challenge to the government ahead of the <a href="https://www.nepalitimes.com/opinion/nepal-inc/" target="_blank" rel="noopener">Nepal Investment Summit 29-30 March</a>, during which the government hopes to attract <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">foreign investments</a> on hydropower projects.With the CK Raut deal and the warning on Biplav, the government is trying to show that it is willing to negotiate, but will not tolerate violence. Some within the ruling party are asking why if Prime Minister Oli can bring a separatist force to the negotiating table, it is taking so long for him to tame the NCP.After mainstreaming Raut, the government now needs to expedite political devolution in <a href="https://www.nepalitimes.com/banner/from-rebels-to-rulers/" target="_blank" rel="noopener">Province 2</a>. The root cause of extremism is exclusion and <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide/" target="_blank" rel="noopener">inequality</a>, and Nepal will continue to be unstable as long as these injustices are not addressed.

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With Saturday's deadline on Malaysia’s announcement of new criteria for selecting private recruiting agencies for migrant workers having lapsed, Nepal and Bangladesh have rejected the conditions.
The Malaysian move three weeks ago came in the aftermath of deadly GenZ riots in September, when Nepal’s interim government does not have designated heads in the Foreign Ministry and the Labour Ministry.
Interim Prime Minister Sushila Karki instructed the Labour Ministry to examine the implications of the standards and recommend appropriate steps to address them, but it has said it cannot send Nepali workers to Malaysia based on those criteria.
“In line with Nepal’s foreign employment policy and regulations, we are currently unable to accept or implement the proposed criteria,” says Pitambar Ghimire, spokesperson at the Ministry of Labor, Employment and Social Security in Kathmandu.
In response to the government’s request for their opinion on the Malaysian stipulation, the Nepal Association of Foreign Employment Agencies (NAFEA) has also flatly rejected the criteria, saying it could create a harmful syndicate and restrict fair competition, violate Nepal’s Constitution and laws, and increase recruitment fees that workers must pay.
On 25 October, the Malaysian Ministry of Foreign Affairs sent letters to the governments of Nepal, Bangladesh, Burma, Pakistan and India with 10 criteria meant to ‘rationalise the number of licensed private recruitment agencies permitted to facilitate recruitment and placement of workers to Malaysia’.
The proposed criteria include: at least five years of operating experience, deployment of 3,000 workers in the past three years of operation, experience sending workers to at least three countries, valid licenses and good conduct certificates, five employer testimonials, operating their own training and accommodation centres, and even a requirement for the staffing agency to have a 10,000 sq m office maintained for three years.
“We have communicated our views to the Ministry of Foreign Affairs, and have proposed discussing various labour related matters with our Malaysian counterparts diplomatically through bilateral dialogue and negotiations including renewal of the Nepal-Malaysia labour agreement,” Pitamber Ghimire said.
NAFEA has urged the government to prevent this measure from moving forward using diplomatic channels, and has held &nbsp;several gatherings and press conferences opposing the proposal since the Malaysian letter was received three weeks ago.
“We have taken commitment letters from members that they will not be engaged in activities related to the syndicate,” said Sujit Shrestha of NAFEA. “And if they break the commitment, they will face consequences including the revocation of their NAFEA membership. These letters also send a strong message to the government that this is irrevocably and collectively rejected by the industry.”
Bangladesh has also not accepted the proposal despite the 15 November deadline to send a list of recruiters that meet the criteria. That in itself would have been an impossible task to complete to begin with even if the government had accepted the proposal.&nbsp;
According to media reports, Bangladesh has sent a letter to the Malaysian government requesting that three of the proposed criteria be relaxed. This includes flexibility regarding the requirements for a 10,000 sq ft office, a dedicated training center, and the condition of having deployed 3,000 workers in the last five years. Despite the official request to Malaysian authorities, the Bangladeshi Government has also been collecting applications from recruiters who meet Malaysia’s proposed criteria, raising confusions about the contradictory stance.&nbsp;
Just like NAFEA, the recruitment association in Bangladesh, the Bangladesh Association of International Recruiting Agencies (BAIRA) has also outright rejected the proposal including in a letter to the Bangladeshi government, calling the criteria ‘unprecedented and exclusionary, unreasonable, discriminatory and syndicate-driven &nbsp;that would effectively disqualify 99% of legitimate agencies from participation’.&nbsp;
Now that the ball is back in Malaysia’s court and the proposal has not gained much support from two of the major origin countries, it will be interesting to see how they respond.

Nepal, Bangladesh reject Malaysian conditions

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

Global warning bell in Belém

As people move out of Nepal’s trans-Himalayan districts, their faiths migrate with them to the cities and all over the world. The ancient animist faith of Bon Po predates the advent of Buddhism in Tibet, and its last remaining priests and devotees are found in villages like Lubra in Mustang and Samling in Dolpo. But as those villages empty out, Bon centres can now be found as far afield as Kathmandu, New York and Tokyo. The first Triten Norbutse Monastery was founded in Tibet in the 14th century by the Bon Master Shen Nyima Gyaltsen. Its monastery in Nepal is below the forested hills of Ichangu on the western outskirts of Kathmandu.&nbsp; Many are surprised to hear that there is a Bon centre in Kathmandu, and that it is located so close to Swayambhu. This Triten monastery was established by Yongzin Tenzin Namdak Rinpoche only 40 years ago to cater to adherents of the faith who lived in the capital. True to its reverence for nature, the shrine is verdant, with plants and flowers amidst a contrasting backdrop of Kathmandu’s ugly urban sprawl below. The monastery practices Bon culture and passes on teachings to students as well, who after completing 15 years of study graduate to become ‘Gese’.&nbsp; It is believed that Bon Po was brought to Nepal from Tibet by Tonpa Shenrab Miwoche. Over the centuries, Bon and Buddhism have become syncretic in Dolpo and Mustang, despite the differences in their belief systems. Followers worship nature and consider the human body, speech and mind as jewels. The human body is said to be composed of five elements: earth, water, fire, air, and the cosmos.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5.jpg" data-media-id="editor_0" data-image-id="20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="The Bon Po way of life NT"> </figure>  The Bon faith was much more widespread during the reigns of Nyathi Chenpo, the first king of Tibet to Namri Srongchen, the 32nd king. But it was after King Srongchen Gompo that Buddhism started making inroads on the plateau, and spread also in the Himalayan rimlands. There are also Bon followers in Humla, Jumla, Baglung, Mugu, Kaski and Chitwan, as well as in the United States and 50 other countries, indicating the movement of people within Nepal and outside.&nbsp; The Bon religion believes in reincarnation and that everything, including positive and negative thoughts are a result of past life karma. Buddhism focuses more on attaining Nirvana, a state of no suffering, where the subject is released from all his/her karmas. Bon has also inducted some Tantric practices and rituals, some of which are in parts similar, yet still different from Buddhism.&nbsp; “In Buddhist culture, circumambulation of shrines is clockwise, but in Bon culture, circumambulation is in an anticlockwise direction,” explains Chhiring Lama of Triten Norbutse Monastery. “The main Bon mantra is Om Ma Tri Mu Ye Sa Le Du, while followers of Buddhism chant Om Mani Padme Hum. Buddhism emphasises enlightenment by meditation and moral behaviour, while Bon beliefs centre on nature and ancestor worship, and placating the spirits. In religious texts, it is mentioned that there were 1,008 Buddhas throughout time. Tonpa Shenrab is believed to be the 8th Buddha, and Bon practitioners are guided by his teachings contained in 140 sacred writings known as Kangyur and 300 more scriptures known as Katen.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07.jpg" data-media-id="editor_1" data-image-id="20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="The Bon Po way of life NT"> </figure>  “We worship nature and its elements and the prayer flags contain religious texts and when the wind blows through it we consider it a prayer,” says Chhiring Lama. “We also worship ponds for the water and consider fire as a sacred element as well. We also consider snakes sacred, therefore worship ponds, considering them as the place of residence.” The interdependence between human beings and nature is clearly depicted through such traditions and practices which carry relevance today as the planet faces the crisis of climate breakdown.&nbsp; Important gods worshiped include Satrig Ersang, Shenlha Okar, Sangpo Bumtri, and Tonpa Shenrab Miwoche. But what is similar to Buddhism is an offering known as ‘torma’, a cone shaped ritual offering made from flour dough. Many Bon faithful are vegetarian, or abstain from meat during festivals.&nbsp; Over time, the rise of Buddhism in Tibet and beyond overshadowed Bon, pushing many of its practices to the margins. Yet, the tradition continues to live on, carried by those who see in it a deep connection to nature, the spirit world, and the roots of Tibetan culture.&nbsp; In many ways, the endurance of Bon is a reminder that even the quietest faiths hold timeless truths, waiting to be remembered and valued. Followers of Bon today are far fewer, and the knowledge about its traditions is not as widespread.&nbsp; “As time goes on, people adopt rituals and cultures that are more convenient to their daily lives,” says Chhiring Lama. “But that means forgetting or leaving behind one’s indigenous and ancestral roots.”

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The Bon Po way of life