<figure><img width="1500" height="844" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb049c7e80680e08bb9djpeg.jpg" alt=""/><figcaption></figcaption></figure>A proposal by Nepal’s Immigration Department requiring consent from a guardian and local government for women under the age of 40 travelling to the Gulf or Africa has sparked public fury, and is taken as yet another proof of a misogynist, bungling bureaucracy.  The Department made the recommendation to the Home Ministry on Wednesday, saying it was needed to curb the trafficking of <a href="https://www.nepalitimes.com/latest/lift-the-ban-on-female-domestic-workers/" target="_blank" rel="noopener noreferrer">Nepali women without labour permits</a>, especially to the Gulf countries. However, instead of clamping down on the ‘setting’ and collusion between recruiters, immigration officials and foreign-based agents to curb trafficking, the restrictions overlook womens’ agency in making decisions, their freedom to travel and work.  Teknarayan Poudel at the Immigration Department told Nepali Times that an earlier 2009 directive had to be amended because of “rampant misuse”. The following changes have been proposed: <ol><li>Women travellers on visit visas need a travel insurance of at least Rs1.5 million</li> <li>They will need to show a voucher/receipt as evidence for currency exchange </li> <li>Women under 40 traveling for the first time to the Gulf Cooperation Council countries or Africa on their own are required to obtain permission from family members and the local ward. </li> </ol>It is the third proposal that has caused public outrage, and it ignores that in the past labour permits have been prone to misuse when unnecessarily restrictive, especially for women.  <figure><img width="1424" height="1253" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb079c7e80680e08bb9ejpeg.jpg" alt=""><figcaption> </figcaption></figure>By not granting labour permits or approvals for household work abroad, women cross the open border to India, or use visit visas since that is their only way out. It is clear that curbing visit visas, instead of curbing trafficking of women workers, will just <a href="https://www.nepalitimes.com/here-now/ban-the-ban/" target="_blank" rel="noopener noreferrer">intensify irregular travel via India</a>. Poudel says public reaction to the proposal overlooks the criteria that it only applies to first time travellers to the Gulf and Africa. “It is the first-timers to the GCC who are most vulnerable to visit visa misuse that this proposed amendment is addressing,” he said.  But that does not take away the ludicrousness of the proposal. When reached, the Home Ministry refused to comment. The proposed changes are similar to recommendations in a recent report by an inter-agency taskforce under the Home Ministry to investigate the misuse of visit visas.  Nepali workers were bypassing cumbersome labour permits by travelling abroad on visit visas, and the Immigration Department had been severely criticised for another meaningless proposal to require all those on visit visas to have a minimum education qualifications and English speaking abilities.  Poudel dismissed this, saying, “It was one of the many options that were tabled, but it was never given much consideration.”  <figure><img width="1802" height="1010" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb0a9c7e80680e08bb9fjpeg.jpg" alt=""><figcaption> </figcaption></figure>To be sure, the misuse of visit visas is a pressing problem because it has put many migrants, especially women, at risk. In addition to bypassing jobs and countries for which labour approvals are banned for safety reasons, visit visas are also misused by recruiters who want to circumvent legal safeguards or because there are delays in paperwork.“Countries or sectors restricted for foreign employment owing to vulnerabilities are the most ripe for misuse of visit visas,” says Kumar Dahal of the Department of Foreign Employment. “We get calls from women in places like Syria that are banned for foreign employment. Stranded domestic workers from Kuwait call us in the worst imaginable situations. What they have in common is that they all left on visit visas.”He said that although many workers go to the UAE on visit visas, it is also a transit to third countries. On Wednesday itself, the Nepal Embassy in Abu Dhabi released a notice asking Nepalis not to come to the UAE on visit visas for work because of an increase in cases of stranded migrants. The latest proposed restriction on visit visas has its roots in Nepal’s labour migration system that requires workers to obtain approvals to work abroad. The government labour permit is like Nepal’s exit pass that signifies legal pre-departure procedures are followed. The permits have their merits since they keep intermediaries and employers accountable, ensure that migrants travel with proper documents for authentic jobs, and they are enrolled in a contributory fund if something goes wrong.  However, the new proposal is <a href="https://www.nepalitimes.com/opinion/migrating-for-domestic-work/" target="_blank" rel="noopener noreferrer">reminiscent of past restrictions on women</a>. Looking at the evolution of the clause on treatment of female migrants: 1985 The Foreign Employment Act prohibited recruiters from providing jobs to women and children without the consent of guardians. 1988 An amendment expanded this to include permission from guardians as well as His Majesty’s Government. ‘Guardian’ referred to the mother or father of an unmarried woman or husband of a married woman, or elder or younger brother aged 21 years or more of an unmarried woman living in the same family, or father-in-law or mother-in-law of a married woman. 2007 The Foreign Employment Act stated: No gender discrimination shall be made while sending workers for foreign employment pursuant to this Act. Provided that where an employer institution makes a demand for either male or female workers, nothing shall prevent the sending of workers for foreign employment according to that demand. 2021 The proposed amendment requiring approvals from guardians and local governments for first-timers to travel on visit visas puts Nepali women back on square one.  <figure><img width="800" height="1035" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb0e9c7e80680e08bba0jpeg.jpg" alt=""><figcaption> </figcaption></figure>Shambhu Niroula, a legal adviser to the National Association of Foreign Employment Agencies (NAFEA), says the non-discriminatory clause in the 2007 Act was a huge achievement. “It wasn’t just the non-discriminatory clause, there were also examples of positive discrimination to level the playing field like returning the costs of orientation fees to women migrants,” he says, adding that the proposed rules are regressive. But directives such as the <a href="https://www.nepalitimes.com/latest/lift-the-ban-on-female-domestic-workers/" target="_blank" rel="noopener noreferrer">ban on domestic workers</a> that are predominantly female contradict the non-discriminatory legal clauses, and the new proposed rule is a regressive addition impacting women. The latest ban on domestic workers was <a href="https://www.nepalitimes.com/banner/homes-away-from-home/" target="_blank" rel="noopener noreferrer">put in place in 2017</a> after Parliament committee visited the Gulf in early 2020 and decided it was unsafe for domestic workers, regardless of gender. After a similar trip to the Gulf by a team led by Bimal Prasad Shrivastav, Chair of the Parliamentary Committee on Industry, Commerce, Labour and Consumer Interest instructed the government to revisit the ban.“We have recommended country specific policies for domestic workers abroad,” he said. The criteria include having a bilateral labour agreement, a separate domestic worker law, pre-departure training, equality of treatment between Nepalis and locals, and easy access to communicate with consular officials and families back home.These preconditions were still deemed restrictive, but better than previous rules. However, Covid-19 derailed action. The pandemic itself impacted women workers abroad disproportionately, especially those who had traveled through India or on visit visas since they did not exist in government records and were ineligible for any support from Foreign Employment Welfare Fund. There are also questions about the requirement that women need permission from the local ward before they can go abroad. They should instead be mobilised to help aspirants make informed decisions via counseling and information campaign. They also have the proximity advantage to monitor illicit activities.The reactive ban or restrictions on travel that disproportionately target women are lazy because the alternative requires stakeholders to be proactive, engage in bilateral discussions with destination country governments, have strong inter-agency coordination, hold complicit  immigrant officials accountable, ramp up action against traffickers, train and inform workers on safe practices, to look for safer, legal pathways, to create jobs at home, and clamp down on domestic violence. Instead, they have come up with bizarre policies with detrimental consequences that do not address the problem at hand, but have unintended but predictable consequences.Nepalis reacting on social media to the proposal have questioned on what grounds is a ‘guardian’ eligible to grant permission for a woman to travel. ‘Why should men under 40 be spared from this provision?’ asked one. How will the consent from the guardian and local authority address trafficking, said another. What if the same guardian is the very source of domestic violence from which the woman is escaping for overseas work?  <img width="640" height="535" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb109c7e80680e08bba1jpeg.jpg" alt=""><img width="640" height="902" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb139c7e80680e08bba2jpeg.jpg" alt=""><img width="518" height="672" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb169c7e80680e08bba3jpeg.jpg" alt=""><img width="750" height="403" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb189c7e80680e08bba4jpeg.jpg" alt=""><img width="900" height="424" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb1a9c7e80680e08bba5jpeg.jpg" alt="">Even when such letters are not required, women are often harassed by immigration officials at the airport.  Because of the public reaction, it is likely that the Home Ministry will not move forward with the proposal. But it is a sad reminder that even decades later, we are even considering such archaic policies that were considered discriminatory and regressive even then.  Bijaya Shrestha, who heads AMKAS Nepal that supports returnee female migrants says, "In 1996 I wanted to make a passport to go to Japan and was asked to bring a similar letter from my guardian and when I told them I don't have guardians, they said it could be my younger brother who was 21 years old. I was 30 then."The passport office was all right with a letter from her younger brother, but not from her 28-year-old younger sister. She adds, "I can't believe we are back to the same debate against a nonsensical, discriminatory policy. How much longer must we fight against this?" Up to 70% of women workers that AMKAS supports were forced to travel through irregular channels because of the travel restrictions. Sarda Rai is a migrant who has worked in households in Dubai, Kuwait and Saudi. She is now back in her home in Morang, and says: “I left via India but used to return home through Kathmandu airport. The immigration officials gave me a hard time every time. I had to fight back and tell them either to lift the ban, to not issue us passports at all, or to give us jobs in Nepal. All that is still true.”

Upasana Khadka

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

History of female (im)mobility in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22a89c7e80680e04179ejpeg.jpg" alt="" width="640" height="480"/><figcaption>Women migrant returnees at Pourakhi</figcaption></figure>A recent Bournemouth University study exploring health care problems of  1,000 female migrant returnees revealed that Nepali women workers face severe health challenges abroad.Over the past decade, almost 200,000 women have been documented by the Department of Foreign Employment to have travelled to nations across West Asia --  mostly to the UAE, Kuwait, Malaysia, Qatar, Saudi Arabia, Cyprus and Jordan, where they have worked primarily as caregivers and domestic help. However, 90% of Nepali female migrants are estimated to be undocumented.In 2016, the government outlawed labour permits for domestic workers in the Gulf following widespread reports of abuse. But women have continued travelling though <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/ban-the-ban/">illegal means</a> via India, which further increases their vulnerability to traffickers and risks of being abused and exploited.Multiple horror stories have emerged over the years about the abuse of migrant women. There is high demand of Nepali housemaids in the Gulf, and migration agents have been <a href="https://www.nepalitimes.com/here-now/ban-the-ban/" target="_blank" rel="noopener">reported to sell women off to employers</a>. Women have to work long hours, do not receive pay on time, and have no one to lean on for support due to isolated nature of domestic work.“At the agent’s office in Kuwait, we were treated like goats. Employers walked in and checked us out, haggled and handed cash to the agent on the spot. We were sold like livestock,” said Renu, who had returned from Kuwait, to Nepali Times earlier this year.Read also: <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/ban-the-ban/">Ban the ban</a>, Upasana KhadkaThe most recent survey has shown that difficult working conditions abroad translate to severe health consequences, with the most common maladies being fever, accidents, and other serious illnesses. Women suffering abuse in the workplace, who have family problems back home, and who are illiterate had health problems in greater proportions than others, the survey revealed.  After falling sick, only 12.9% of respondents reported that they received health care services.Read also:<a href="http://archive.nepalitimes.com/page/women-migrant-workers-are-doubly-vulnerable">Women workers are doubly vulnerable</a>, Rojita Adhikari <a href="http://archive.nepalitimes.com/article/nation/women-migrant-workers-with-babies-face-double-stigma,2580">Back with babies</a>, Rojita Adhikari<a href="https://www.nepalitimes.com/banner/homes-away-from-home/">Homes away from homes</a>, Upasana KhadkaProfessor Edwin van Teijlingen of Bournemouth University says that publishing quality research reflecting conditions of workers is crucial to providing accurate information for policy-makers and the labour export industry to learn from. The study was conducted in collaboration with John Moores University and two Nepali organisations, Tara Nepal and POURAKHI Nepal, which work to ensure safe migration for women.Professor Padam Simkhada of John Moores University explains that the study combines two crucial issues of migration: health and human rights. “This is one of several projects we are working on in the field of health and migration, and with proper working conditions, female migrant workers can learn and bring back valuable skills,” says Simkhada.The study concluded that raising women's awareness about their work environment and training them with preventive measures to combat exploitation from recruiting agencies and employers can play a positive role in empowering them.In a dissemination session following the report, concerns were also raised about the importance of  government interventions in conducting awareness campaigns about health risks, rights and suitable health services in foreign nations.<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5774120/pdf/12914_2018_Article_145.pdf">Read full report</a> by Bournemouth University

Caring for Nepal's women

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>.

domestic-help

History of female (im)mobility in Nepal

Caring for Nepal's women

Visit Nepal in the monsoon

Not poor, but not rich

Nepal’s bubble economy

Flouting rules caused Saurya tragedy