Nepal finds itself at an intersection of two potent forces – a technological revolution sweeping the globe and a dramatic demographic shift. Artificial intelligence (AI) and automation, often seen as the deus ex machina of the 21st century, are making their presence in every part of our lives. This digital metamorphosis comes with its benefits and threats. While they promise to augment economic activities, they simultaneously risk displacing numerous labour-intensive jobs. This concern is acute for a country like Nepal, where remittances from its workers in the Gulf countries, a region rapidly embracing technological shift, account for almost 26% of the nation’s GDP. “Job displacement from labor-intensive industries has been taking place for several decades, as countries move to higher-value-added activities and services,” wrote Mckinsey &amp; Company in The Future of Jobs in the Middle East in 2018, adding that this will accelerate <a href="https://www.mckinsey.com/featured-insights/middle-east-and-africa/are-middle-east-workers-ready-for-the-impact-of-automation">between now and 2030 with 45% of existing work in the Middle East potentially being automated.</a>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_a93aeeca5e7480559a7ada068cb22ba7247b73088349c2eedead1f35af622d81.png" data-media-id="editor_1" data-image-id="20230904090952_a93aeeca5e7480559a7ada068cb22ba7247b73088349c2eedead1f35af622d81" data-rendition-name="original" width="918" height="685" loading="lazy" alt="Tech and transition"></figure>   <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_1b3468214a3703bdf69e5c332831d25699cd690e170d2ef7b1418fbbe19ca9f6.png" data-media-id="editor_2" data-image-id="20230904090952_1b3468214a3703bdf69e5c332831d25699cd690e170d2ef7b1418fbbe19ca9f6" data-rendition-name="original" width="676" height="305" loading="lazy" alt="ILO"><figcaption>Source: Recruitment of migrant workers from Nepal: Country Profile (ILO, 2021)</figcaption></figure>  This should be of special concern for policymakers in labour exporting countries like Nepal given the inherent <a href="https://www.mckinsey.com/~/media/mckinsey/featured%20insights/middle%20east%20and%20africa/are%20middle%20east%20workers%20ready%20for%20the%20impact%20of%20automation/the-future-of-jobs-in-the-middle-east.pdf">link between displacement potential by automation and low-to-medium levels of education and experience</a>. Workers who have a ‘high-school education or less’ are most vulnerable to the shocks associated with automation. The average automation potential of jobs requiring less than high school, or high school/some experience is more than 50%. Labour migrating from Nepal predominantly characterised by a preponderance of young unskilled labor (more than 54% of total labor migration) are most vulnerable in this displacement.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_184cb0d4a71b043fa9cbc0cf102e6ceee65e43dd27e42e3d5d3befdce491525f.png" data-media-id="editor_4" data-image-id="20230904090952_184cb0d4a71b043fa9cbc0cf102e6ceee65e43dd27e42e3d5d3befdce491525f" data-rendition-name="original" width="918" height="644" loading="lazy" alt="Tech and transition"></figure>   <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090952_fdb171a296445b16abb2dd9a04e2dac49a0e8d8723b7564bf232b96a4ad16f36.png" data-media-id="editor_5" data-image-id="20230904090952_fdb171a296445b16abb2dd9a04e2dac49a0e8d8723b7564bf232b96a4ad16f36" data-rendition-name="original" width="1106" height="268" loading="lazy" alt="Tech and transition"><figcaption>Source: Recruitment of migrant workers from Nepal: Country Profile (ILO, 2021)</figcaption></figure>  At the same time, Nepal with more than 60% of its population falling in the working age group is undergoing a demographic shift. Drawing upon the 2021 census data, Nepal’s annual population growth rate has decreased to 0.92% with the birth rate having dropped while life expectancy is on the rise. The World Bank data reveals that Nepal’s birth rate dropped from 31 per 1,000 people in 2000 to 20 in 2020, while <a href="https://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=NP">life expectancy</a> has risen from 63 years to 69 years during the same period. The number of people older than 60 has climbed by 2 percent points. By 2040, the <a href="https://databank.worldbank.org/source/population-estimates-and-projections">population estimates and projections from the World Bank</a> shows that the proportion of elderly population in Nepal will have increased by more than one third. These demographic forces are poised to cause a significant increase in the dependency ratio (dependent people as percent of the working age population), a challenge for an economy primarily dependent on labour remittance.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904100944_d1d3d49bf18f40fb0ec96b81bcb77ff1cbf2641896397b71868cae07fc78d131.jpg" data-media-id="editor_8" data-image-id="20230904100944_d1d3d49bf18f40fb0ec96b81bcb77ff1cbf2641896397b71868cae07fc78d131" data-rendition-name="original" width="1000" height="700" loading="lazy" alt="demographic transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021)</figcaption></figure>  Nevertheless, technological revolution has not only reshaped global superpowers but has also provided emerging economies with opportunities to leapfrog traditional developmental transition. Digital technology’s creative destruction could spawn new sectors of employment, that could help to harness the benefit of demographic dividend and improve the quality of life in the longer run. <a href="https://www.iids.org.np/images/publications/53e4e8a0c60bb963dfdabce67ec5fdcf.pdf">A study by the Institute of Integrated Development Studies</a> offers insightful data that underscores the significance. By 2022, Nepali IT companies had made a substantial investment of $41.26 million across the country. This investment reflects the growing confidence of stakeholders in the potential of the IT sectors. More impressively, these investments translated into staggering revenue of $515 million, showcasing the sector’s profitability, and its capacity to contribute to the national economy. As technology has made more services tradable, Nepal has the opportunity to transition from labour exports to service exports. This not only retains talent within the country but also creates job opportunities for the youth, addressing the brain drain issue. However, the trajectory isn’t as straightforward. Digital inclusion gaps, a limited capacity for innovative digital tech use, myopic labour laws, lack of data security laws, shortage of skills and IT infrastructural challenges pose substantial barriers for inclusive growth. Moreover, Nepal has grappled with governance failure and political instability that have hampered past policy implementation efforts, pointing towards a more critical systemic challenge. On one hand, IT companies seek workforce proficiency in essential areas such as UI/UX, SQL, full stack web development, python, DevOps, and automation testing.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090956_bf93b210720350521983eeebac9d8f82458aaf26608105bd57fb32991929002e.png" data-media-id="editor_10" data-image-id="20230904090956_bf93b210720350521983eeebac9d8f82458aaf26608105bd57fb32991929002e" data-rendition-name="original" width="655" height="455" loading="lazy" alt="Tech and transition"><figcaption>Source: Unleashing IT: Advancing Nepal’s Digital Economy (IIDS, 2023) </figcaption></figure>  While on the other hand, demographic profile of Nepal shows that there are less than 2% youths in the age group 15-39 years with 10+2 or equivalent who have computing and technology as major field of study. The figure is much higher for those enrolled in management at more than 35%.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904090956_58e440ecb976281a220e2d16c26ff12c4679418957ca77c33250fbcd26792299.png" data-media-id="editor_11" data-image-id="20230904090956_58e440ecb976281a220e2d16c26ff12c4679418957ca77c33250fbcd26792299" data-rendition-name="original" width="1000" height="800" loading="lazy" alt="Tech and transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021) </figcaption></figure>  Viewed through a gender lens, females within this age group exhibit a strong inclination towards Education and Health/Medical Sciences. Their representation in the field of Computing and Information Technology remains strikingly low, accounting for less than 1% of the cohort.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023090410090_8697f24662b6a53800810f764bb8d834b5198772b28cf29845ef23ec65bf15be.png" data-media-id="editor_12" data-image-id="2023090410090_8697f24662b6a53800810f764bb8d834b5198772b28cf29845ef23ec65bf15be" data-rendition-name="original" width="1900" height="800" loading="lazy" alt="Tech and transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021) </figcaption></figure>  While established <a href="https://b360nepal.com/public/putting-his-stamp-on-the-world-kiran-bhakta-joshi">digital enterprises and burgeoning startups are navigating through the talent pool</a>, they frequently encounter a significant void: a dearth of individuals possessing the requisite skills to be deemed employable. This scarcity is particularly pronounced among women, whose specific skill gaps act as a formidable barrier, constraining their full participation in the digital workforce and entrepreneurial ventures. Madhes Province, for instance, with a youthful demographic paradoxically grapples with staggering low female literacy rate (54.7%).  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230904100932_7b52c96ac5b03f15a358ec65d94d9485e78aba51c3f2ac8915041e98fd337779.png" data-media-id="editor_14" data-image-id="20230904100932_7b52c96ac5b03f15a358ec65d94d9485e78aba51c3f2ac8915041e98fd337779" data-rendition-name="original" width="1512" height="634" loading="lazy" alt="Tech and transition"><figcaption>Source: Nepal Population and Housing Census (NSO- NPHC, 2021)</figcaption></figure>  It is crucial to consider the <a href="https://www.nber.org/papers/w28551">unequal effects of service-led growth</a>, a phenomenon that has been observed in other developing countries like India. In Nepal, this could exacerbate existing urban-rural divides, as the evolution of informational technology may not absorb the unskilled labour from rural area that currently seeks employment abroad, particularly in the Gulf countries. It is imperative for Nepal to craft policies that are sensitive to these unequal effects. This could include investing in education and training programs that are aligned with the needs of the IT sector, bridging rural development initiatives that complement holistic service led growth, and implementing training programs that help females and individuals from underrepresented groups in the burgeoning IT sector. As the tides of time advance, we find countries steadily pivoting towards realms of higher intellectual yield—towards activities and services that demand less from the body and more from the mind. Nepal with its youthful demographic could, to some extent, harness the power of technology to spur economic growth. However, this same demographic group, given their current education levels, might not effectively complement in the aspired trajectory. Moreover, they are potentially the most vulnerable to unemployment due to automation, especially with over 54% of total labour migration being unskilled. The government faces a herculean task in turning technology into a viable solution for employment and inclusive growth. Development stakeholders in the young republic must guide this transformation with astute policymaking and strategies as we witness Nepal's demographic shift in the age of automation.” Ashutosh M. Dixit is an economist and an Australia Award Scholar with over 15 years of experience. He has worked with the National Planning Commission in Nepal and global institutions including the World Bank, UNICEF, UN-ESCAP, OECD, UNDP, and Standard Chartered.

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Tech and transition in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a66f29c7e80680e0599b1jpeg.jpg" alt="" width="1500" height="1062"/><figcaption>Photo : SONIA AWALE</figcaption></figure>Nepal is stepping up preparations for its 10-year census in 2021, which is slated to be the most hitech in history and will go beyond simply counting the <a href="https://archive.nepalitimes.com/article/nation/Nepals-changing-demography-is-having-profound-impact-on-politics,2693" target="_blank" rel="noopener">country’s population</a> to surveying households in order to chart the country’s path in the coming decade.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38051&amp;preview_nonce=38f8426e6c&amp;preview=true" target="_blank" rel="noopener">Nepal in 2030</a>, Sanghamitra Subba<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38046&amp;preview_nonce=d2d7129548&amp;preview=true" target="_blank" rel="noopener">A future written in the stars,</a> Sanghamitra SubbaEnumerators from the <a style="letter-spacing: 0.01em;" href="https://cbs.gov.np/" target="_blank" rel="noopener">Central Bureau of Statistics</a> (CBS) will be using tablets to enter data during a pilot census in 14 districts next month. The actual census in June 2021 is expected to give an accurate picture of Nepal’s demography and how it has progressed in <a style="letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/this-is-how-to-upgrade-nepals-rural-health/">health</a>, <a style="letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/after-quantity-nepals-education-needs-quality/" target="_blank" rel="noopener">education</a> and development.Read also:<a href="https://www.nepalitimes.com/?p=38023&amp;preview_nonce=024823c344&amp;preview=true" target="_blank" rel="noopener">Towards 2030</a><a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38038&amp;preview_nonce=e8166bf726&amp;preview=true" target="_blank" rel="noopener">Another decade to get it right,</a> Editorial<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38073&amp;preview_nonce=5c5e53a600&amp;preview=true" target="_blank" rel="noopener">How will Nepal develop in the next decade?,</a> Sonia AwaleFor the first time, data will be collected at the lowest administrative unit, the ward, and also include information on housing, migration, jobs and income. The census will cost Rs4.5 billion and employ 43,000 enumerators.“Previous censuses only went down to the district level, and enumerators used two forms: a short form for every household, and a long form used on every eighth household,” says Bijay Thapa of the United Nations Population Fund (UNFPA), which is collaborating with the government on the census. “After federalism, local governments also want disaggregated data and we will have detailed information on every household.”Next year’s exercise will also count the number of old and new buildings and note whether they are residential, official, commercial or unused. It will include a community survey, one of the first in the world, to assess availability of government services, <a href="https://www.nepalitimes.com/banner/disastrous-management-in-nepal/" target="_blank" rel="noopener">disaster preparedness</a> and access to natural resources.“This will help us determine if people are making the best use of government services,” says CBS Director Dhundiraj Lamichhane. “Nepal has categorised 276 municipalities as urban, but we do not know if the resources available match the international criteria for urban municipalities. This survey will help us determine that. If successful, it will be a model for other countries.”Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38051&amp;preview_nonce=38f8426e6c&amp;preview=true" target="_blank" rel="noopener">Nepal in 2030,</a> Sanghamitra Subba<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38051&amp;preview_nonce=38f8426e6c&amp;preview=true" target="_blank" rel="noopener">A future written in the stars,</a>Sanghamitra SubbaLamichhane said the questions enumerators will ask have not yet been finalised, but there are demands from various communities to include ones on mother tongue, <a href="https://www.nepalitimes.com/here-now/the-right-of-passage/">disabilities</a> and sexual orientation. Activists say there are 900,000 <a href="http://archive.nepalitimes.com/article/nation/Night-and-%20Day,3145">LGBTI people in Nepal</a>, but the 2011 census showed only 1,500 so the figure was not included in the results.“This time they want more detailed questions to reflect their diversity, but we think it is better to do a separate survey,” says Lamichhane. “Various castes and ethnicities are also demanding to be included, but we will only do so if recommended by relevant government bodies.”Going by past trends and other sample surveys, experts have already projected results of the 2021. Nepal is expected to continue showing improvements on most indicators, including birth rate, population growth, health and education. However, they say some indicators, like the sex ratio and migration, may not show progress.One of the reasons Nepal’s <a href="https://www.nepalitimes.com/here-now/migrating-males-and-population-decline/">population growth rate is low is because of the absentee population</a>: 1.92 million according to the last census. And there is no reason to believe that the percentage of migrants will decrease or even stabilise in next year’s count. However, internal migration is expected to slow because of more education and employment opportunities at local levels.Nepal’s current sex ratio is 94 males per 100 females,<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a66f59c7e80680e0599b2jpeg.jpg" alt="" width="461" height="500">and the sex ratio at birth is 106 males per 100 females. This is considered normal, since there are usually slightly more male children born than females, but females tend to live longer.“Female foeticide is growing even though it is illegal. The next census may show a greater ratio of male babies born to female ones, and we estimate the sex ratio at birth to rise to 110 males to 100 females. Additionally, the national average may hide greater discrepancies in certain districts or cities where female foeticide is more rampant, and we need to watch out for that,” explains Tirtha Tamang of UNFPA.Demographic indicators like birth, fertility and death rates are all set to decrease, which means that Nepal’s population growth rate will continue to slow. The 2021 census is likely to show a wider ‘youth bulge’ in the population pyramid. Although this provides a ‘<a href="http://archive.nepalitimes.com/article/editorial/editorial-reaping-demographic-dividend,3621">demographic dividend</a>,’ with a bigger workforce that could lead to a development boom, Nepal must be able to cash in on this window of opportunity in the next 10 years. Given the current quality of governance, experts doubt it will happen.Nepal’s youth advantage will last till 2047. After that, the country will be grappling with the complications of <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/need-to-prepare-for-ageing-society,3624">an ageing society</a>. In fact, Nepal will start losing some of its youth power about 2028, when the population over 65 will be more than 7%. The next decade is key for Nepal to use its demographic dividend to provide jobs at home and boost economic growth.Despite improvements in education, health, life expectancy and income, the country may not be in a position to make the best of its demographic dividend because of the skewed sex ratio caused by <a href="https://www.nepalitimes.com/latest/irresistible-forces-wage-differentials-and-demographic-trends/">outmigration</a>. According to a report by the National Planning Commission, the country sorely needs to invest in policies that make the best of the potential of youth.Says Lamichhane at the CBS: “If young Nepalis at the peak of their abilities <a href="https://www.nepalitimes.com/banner/migration-certificate/">continue to leave the country</a>, then Nepal will not make great strides in development. In the next decade we need policies to modernise agriculture and improve infrastructure if we want to retain our youth and have them contribute to the country.”<h2>21 of Nepal’s most endangered languages</h2>When Nepal’s last census was published in 2011, language became one of the most hotly-debated indicators. Many doubted that the census accurately reflected the status of Nepal’s languages. This time, the Language Commission is working with the Central Bureau of Statistics (CBS) to make a more comprehensive tally.The 2011 census counted 123 languages spoken in Nepal, including foreign languages like English, French, Spanish and Chinese. Also, there was a belief that many people who had forgotten their ancestral language nevertheless registered those languages as their mother tongue, leading to higher numbers of speakers of <a href="https://archive.nepalitimes.com/article/nation/Mind-your-languages,133" target="_blank" rel="noopener">endangered languages</a> registered than in reality. The Kusunda language, for example, has only two speakers left, but the census records 28.“The languages should be categorised as foreign and native to Nepal, so that we don’t count European languages as our own,” says Bharat Tripathi of the Language Commission. “Also, the last time there were only two questions asked about language: <a href="http://archive.nepalitimes.com/news.php?id=13412#.XftV_JMzaUk" target="_blank" rel="noopener">mother tongue</a> and second language. This time we want to change that to: mother tongue, second language and ancestral language.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a66f79c7e80680e0599b3jpeg.jpg" alt="" width="1500" height="947">While the CBS is still debating these suggestions, it has agreed to include six more languages newly catalogued by the Language Commission, bringing the total to 129. “We investigated Rana Tharu, Narafu, Chum, Nubri/Lharke, Poike and Serake languages in the past year. Through linguistic methodologies, we have established that they are distinct languages,” says Tripathi. “This year we have received claims from speakers of Marek Yakhya and Walung languages in Taplejung — we are in the process of investigating them.”These languages are usually spoken by very few people, and are added to the list of endangered languages. The commission has identified 37 languages spoken by fewer than 1,000 people, and placed 21 of them on that list, but there may be many more hidden among less populous communities. The commission is working to document these 21 languages by collecting their grammar, determining their alphabets, writing their language histories and documenting the available folklore.It is doubtful if all of the 129 languages will survive even till the census in June 2021. But most certainly many will be gone by the 2031 census.

Nepal in the 2020s

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

Visit Nepal in the monsoon

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

Not poor, but not rich

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

Nepal’s bubble economy

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

demographic-shift

Tech and transition in Nepal

Nepal in the 2020s

Visit Nepal in the monsoon

Not poor, but not rich

Nepal’s bubble economy

Flouting rules caused Saurya tragedy