https://www.youtube.com/watch?v=3NZJcggr4FQ&amp;feature=youtu.be<a href="https://nepalitimes.atavist.com/feeling-groovy" target="_blank" rel="noopener">Hippies flocked to Nepal</a> in the 1960s and ’70s, drawn by the freedom to buy and smoke pot. But today, tourists are attracted by t-shirts, shawls and jackets made from the <a href="http://archive.nepalitimes.com/news.php?id=879#.XRSFXuszaUk" target="_blank" rel="noopener">marijuana plant</a>.While there are still weed pushers on the streets of Thamel trying to sell you a smoke, the tourist hub is now better known for designer apparel made from a blend of cannabis fibre and cotton.“In my business cannabis isn’t illegal. If cannabis was illegal then we wouldn’t have these products on sale,” says Yubaraj Timilsina, who started out as a vegetable vendor and now owns Hemp Headquarter, which manufactures and runs a wholesale shop for cannabis-based attire.Timilsina and others who deal in cannabis fabric source their products from western Nepal, where <a href="http://archive.nepalitimes.com/article/nation/marijuana-high-time-to-lift-ban,2548" target="_blank" rel="noopener">marijuana cultivation</a> is permitted for hemp production, under strict supervision of the local police. Western Nepal suffered greatly from the US-induced ban on cannabis in the 1970s, when already impoverished farmers were pushed into deeper poverty because of the loss of their cash crop.Read also: <a href="http://archive.nepalitimes.com/news.php?id=879#.XRSFXuszaUk" target="_blank" rel="noopener">Legalise it</a>, Alok Tumbahangphey<a href="https://archive.nepalitimes.com/article/nation/undo-hash-ban,3657" target="_blank" rel="noopener">Push to undo hash ban in Nepal</a>, Sahina Shrestha<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f09c7e80680e04d405jpeg.jpg" alt="" width="1400" height="933"/><figcaption>PHhotos: SONAM CHOEKYI LAMA/PEMA SHERPA</figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f39c7e80680e04d406jpeg.jpg" alt="" width="1400" height="933">On 26 June, International Day against Drug Abuse and Illicit Trafficking, instead of encouraging farmers to plant hemp and start a local industry, police are destroying plants in Tanahu and Chainpur.“The cannabis bushes grow in the wild, they are not cultivated, and we collect the stems from which the fibre is sourced,” says Baburam Bohra from Bajura, the district known to produce the healthiest cannabis plants.While the shrubs can grow up to 3m tall, those harvested for fibre are cut before they flower, which means they cannot be used for smoking. The stems are soaked in water for 10 days so that the outer layer peels off, making it easier for the pulp inside to be extracted.The raw plant tissue is then boiled with ash and washed multiple times to produce fibre. The whole process takes up to three weeks, giving one roll of fibre 3m in length. Hemp fibre is dark tan or brown and is difficult to bleach, but it can be dyed bright and dark colours.Read also:<a href="http://archive.nepalitimes.com/article/nation/marijuana-high-time-to-lift-ban,2548" target="_blank" rel="noopener">High time to lift ban</a>, Sarthak Mani SharmaThe fibre does not contain tetrahydrocannabinol (THC), the naturally occurring psychoactive compound that gives cannabis its narcotic property, so it will not, for example, alert sniffer dogs at airports.Clothing and bags made from 100% hemp fabric can cost up to Rs10,000 depending on their design and size. Yet production is still limited with those bags that are made going mostly to Australia, Spain and Canada, which have legalised marijuana to varying degrees.“I come to Nepal every six months to buy hemp bags to sell them in Spain,” says Nacho Baranas, who owns a shop in Barcelona featuring handicraft from all over the world, including Nepal.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f79c7e80680e04d407jpeg.jpg" alt="" width="640" height="746">Timilsina sells a variety of hemp-based products, including bags, shawls, shirts, trousers and yoga bags. “Foreigners like our hemp bags because they are durable and all-natural,” he says.Thamel trader Prem Dahal is acknowledged by his peers as the pioneer of the hemp trade. He was inspired to take it up 28 years ago after travelling with shepherds in western Nepal and finding that their hardy mattresses were woven from cannabis fibre.“Hemp fabric is stronger, more absorbent and has better insulation against heat and cold than cotton,” Dahal explains. “Hemp is environmentally friendly.”Given that half the <a href="http://archive.nepalitimes.com/article/nation/heavy-pesticide-use-and-low-consumer-awareness-affecting-public-health,1394" target="_blank" rel="noopener">pesticide</a> sprayed worldwide is in cotton plantations, hemp is a nature-friendly alternative fabric. The plant also prevents soil erosion on mountain slopes because of its thick deep root system, and the fabric can be made into at least 100 types of products.“If hemp was fully legal, and allowed to be grown on an industrial scale, it would be as valuable as gold,” says Dahal, who is critical of MPs from western Nepal who do not <a href="https://archive.nepalitimes.com/article/nation/undo-hash-ban,3657" target="_blank" rel="noopener">push for the legalisation of marijuana</a>, which would be a rare job booster.Timilsina sells up to 400 hemp bags per month, but sees another threat on the horizon: cheaper Chinese bags.<h2>Social fabric</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f99c7e80680e04d408jpeg.jpg" alt="" width="1400" height="933">A blend of fabrics from the Himalaya with creative patterns and effective marketing have made Nepal’s hemp-based products trendy in designer stores in Europe, North America and Japan.For the past 20 years, <a href="http://archive.nepalitimes.com/blogs/thebrief/2017/05/03/sixth-sense-success/" target="_blank" rel="noopener">Karuna Natural Wears</a> has been exporting high quality clothes blending hemp with other natural fibres like nettles, aloe and bamboo designed for durability and comfort.“The reason hemp textiles are popular among our customers here and abroad is that they are comfortable, suitable for people with sensitive skin, they are naturally resistant to UV rays, the design to holds shape well and stretches less,” explains designer Nabina Maharjan.Indeed, the hemp clothing on display at Karuna’s store in Darbar Marg and Lazimpat, and Juju in Jhamsikhel in their subdued earthy colours and tastefully rendered minimalist traditional patterns, are soft to the touch. There are t-shirts, pants, skirts and a whole range of bags and other hemp-based products.Although the hemp fabric is mainly sourced from western Nepal, the quality and supply was not reliable enough and Karuna now imports some raw material from China and India.Most in demand at Karuna and Juju stores are apparel from blended fabric, and although they are slightly more expensive, the hemp-cotton fabric is the most popular.Sonam Choekyi Lama<h2>Green Gold</h2>In 1976, after American youth started flocking to Nepal by the thousands attracted by cheap and legal pot, Nepal was forced by the US government to ban the use and sale of marijuana.This threw thousands of farmers out of work, and made impoverished western Nepal even poorer. Today, while US states are legalising marijuana it still remains banned in Nepal.Ravi Pradhan is a Nepali consultant who has been advising the Cambodian government on legalising marijuana. He says it is absurd that the US government still classifies marijuana as a narcotic drug when experts agree on its <a href="http://archive.nepalitimes.com/news.php?id=17997#.XRSFWeszaUk" target="_blank" rel="noopener">medicinal properties and therapeutic effects</a>. “For Nepali farmers it can be a green gold,” Pradhan told a recent conference in Kathmandu on legalising marijuana.Nepal’s Narcotics Drugs Control Act allows the use of the wildly grown cannabis plant, but it is vague and confusing, and its enforcement even more arbitrary. Activists are now pushing for legalisation of hemp cultivation so that plants can be used to make fabric, and – that battle won – they say want to shift their focus to legalising ganja for medical use and even recreational consumption.The activists’ approach is to clearly show the difference between hemp and marijuana. Although they are both derived from the cannabis plant, their morphology, properties and uses are different.Marijuana is a variety of cannabis that contains tetrahydrocannabinol (THC). Hemp, on the other hand, is a non-psychoactive variety of the cannabis plant. Because the leaves look like marijuana, however, most people cannot tell the difference.Sales of hemp products worldwide are expected to reach $2.6 billion by 2022, with China being the world’s largest exporter. Hemp production in Nepal is not banned, but is limited. For example, businesses can only use wild plants.Although marijuana is classified as a narcotic drug, the oil is used traditionally as a muscle relaxant, the leaves are made into chutney, and it is an active ingredient in many ayurvedic products.Pawan Joshi produces hemp oil called Dava, which contains Omega 3 and 6. He says: “It is totally legal to produce the hemp oil as the hemp seeds are legal and the oil doesn’t get you high. We now need across-the-board legalisation of hemp.”<h2>POT VOCAB</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46fc9c7e80680e04d409jpeg.jpg" alt="" width="1400" height="933">Marijuana: Psychoactive drug made from the dried leaves and flowers of the Cannabis plant, contains tetrahydrocannabinol (THC). Also known as weed, pot, grass, Mary Jane.Hemp: A variety of Cannabis plant that grows up to 3m tall and contains less than 0.3% of THC. Fibre is used to  make clothing and bags (see large story).Ganja: Marijuana in Nepali, Hindi and Sanskrit, used to denote both the drug and the Cannabis plant.Bhang: Edible form of marijuana made by crushing green leaves and buds of the Cannabis plant. Smoked and eaten at festival time in Nepal.Hashish: Also known as charas in the Subcontinent, is the resin made from rubbing Cannabis flowers and top leaves.<h2>Wearing paper</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46ff9c7e80680e04d40ajpeg.jpg" alt="" width="1400" height="1360"><a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=5642#.XRSFdOszaUk" target="_blank" rel="noopener">Traditional Nepali paper</a> made from the bark of the lokta plant is used for legal documents because they are insect resistant. Now, one company in Nepal is also making shirts and jackets from the paper.<a href="http://archive.nepalitimes.com/news.php?id=3860#.XRSFd-szaUk" target="_blank" rel="noopener">Lokta pulp</a> sourced from the mountains of Myagdi district are processed and pulled out into lokta thread which are then interwoven with other fabric like cotton or hemp to make items of clothing, cushions, tote bags and placemats.“We decided to experiment and do something different, and thought why not use lokta also for fabric and not just for <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Putting-it-down-on-paper-nepali,3750" target="_blank" rel="noopener">paper products</a>,” says Rita Bhandari of Nepal Paper Crafts, which has been exporting Nepali paper products.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a47029c7e80680e04d40bjpeg.jpg" alt="" width="1400" height="401">Bhandari collaborated with the Netherlands-based designer Janske Megens with whom she was the recipient of the Dutch Design Award 2008 for innovation and simplicity of design for Paper Text Cushion. Nepali paper clothing is most popular in Holland.“Lokta fabric is strong, can easily be dyed, printed, embroidered and washed. It will not get brittle with age and has natural insect repellent properties,” adds Bhandari.Paper cloth is made from lokta thread as weft and weaved with allo, silk, cotton, hemp, wool fabric as warp. The warp on the cloth depends on customers’ order, and the whole process is natural and handmade which is their unique selling point.“They are popular in the West because it is all natural, the clothings are cool in summer and warm in winter,” says Bhandari, who is now exploring a larger international market for Made in Nepal paper fabric.Pema Sherpa

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Clothed in cannabis in Kathmandu

<img width="3592" height="1975" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171116/63692f6c9c7e80680e03c0a6jpeg.jpg" alt=""/>When Nepal became a destination for overland travelers in the 1960s, one young man was ready: Trilochan Shrestha, probably Nepal’s first <a href="https://nepalitimes.atavist.com/feeling-groovy" target="_blank" rel="noopener">hippie</a>. Born in 1945 as the oldest son to a wealthy Newar family, he grew up in Jhhochen where his aunt lived. Trilochan used to skip school to swim in the <a href="http://archive.nepalitimes.com/page/encounter-with-bagmati-river" target="_blank" rel="noopener">Bagmati </a>at Pashupati, and it was there that he met the Aghori Babas, a cult of Shaivite ascetics. They took him under their wing, and inspired the young boy to grow his hair and to smoke. “I was always an overexcited child, nowadays I would be diagnosed with ADHD. <a href="http://archive.nepalitimes.com/news.php?id=879#.W78dD3szbIU" target="_blank" rel="noopener">Ganja </a>helped a lot, it cooled me down. For me, it is a herbal medicine,” says Trilochan, who easily connected with the overland travelers.“I was a hippie before the word was invented. Hippies are the babas of the twentieth century. I simply loved them.”Read also: '<a href="https://www.nepalitimes.com/?p=14825&amp;preview=true" target="_blank" rel="noopener">Hippinis</a>', Lucia De VriesWith his Mediterranean complexion Trilochan was often mistaken for a Westerner, and the western hippies in Jhochhen were intrigued by his ability to light a chillum. “You smoke like a chimney,” they told him admiringly. Trilochan’s first hippie friend was Eight Finger Eddie, an American bohemian who is credited with popularising Goa as a tourist destination. Trilochan started living with overland travelers in Kimdol below Swayambhu, cultivating three longterm relationships with Western women, with whom he fathered two children. Trilochan tried various <a href="http://archive.nepalitimes.com/article/nation/Store-drugs-lead-addicts-to-street-drugs,3201" target="_blank" rel="noopener">drugs</a>, starting with LSD and magic mushrooms, got addicted to coke but managed to kick the habit. Read also:  '<a href="https://www.nepalitimes.com/?p=14813&amp;preview=true" target="_blank" rel="noopener">Photo returns to Kathmandu</a>', Monica Deupala <img width="640" height="634" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171116/63692f709c7e80680e03c0a7jpeg.jpg" alt=""><img width="640" height="924" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171116/63692f739c7e80680e03c0a8jpeg.jpg" alt="">In 1970 Trilochan and his Spanish partner Curry Ojeda opened Ying Yang Restaurant in Jhochhen. An artist at heart, he created an unforgettable design with drapes, funky lights, and the best sound system in town. “Ying Yang was a magic place, it was the only club in Nepal at the time and it had a view on the old palace and the souvenir market. It became <a href="http://archive.nepalitimes.com/news.php?id=3761#.W78ZCnszbIU" target="_blank" rel="noopener">Freak Street’s</a> main meeting point and I was somehow in the middle of it all,” Trilochan recalls.‘On cleverly devised, carpeted levels and in an atmosphere of vermillion, and gilded gloom, seekers of bliss drift through before dinner beers, meals and after-dinner joints,’ wrote Desmond Doig about the place. At Ying Yang, people could dance any time of the day and stay late. The place never seemed to close, remembers a regular, Susan Burns: “Trilochan had all of us trapped in there.”Trilochan used to invite <a style="background-color: #ffffff; letter-spacing: 0.15px;" href="http://archive.nepalitimes.com/news.php?id=4446#.W78ZjXszbIU" target="_blank" rel="noopener">Pashupati sadhus</a> and beggar children to the restaurant to give them free food. When Trilochan registered the Ying Yang he put Jhochhen as its location, with ‘Freak Street’ in brackets – immortalising the name. He says: “I was a freak myself, so I figured it was a good name. I never thought it would become so popular.”  Trilochan feels hippies have been misunderstood, and were not given due credit. He says: “Freak just means ‘different’. We are all born freaky, but society wants to put us in a box. Hippies just want to get out of the box and create a peaceful, creative society.”  Trilochan went on to become a successful tourism entrepreneur, but also a black sheep of his family. “It was painful to listen to people criticising me for being a hippie who ruined the family reputation. What did they expect? That I would drive a Rolls Royce and live an artificial life?” In 1976, under pressure from the US government, Nepal banned the use and sale of marijuana. Trilochan started a campaign to revoke the decision, and was arrested with 30 other families. Although no drugs were found on him, Trilochan spent seven years in prison.  <img width="3499" height="2333" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171116/63692f769c7e80680e03c0a9jpeg.jpg" alt="">When he came out, the scene had changed, marijuana had been replaced by hard drugs like ‘brown sugar’ and heroine. A new breed of travelers started coming, but they went to Thamel. Trilochan went back to Pashupati and reconnected with his sadhus. He still lives ‘the baba life’ and practices sun meditation, which he considers to be his new ‘drug’. Despite suffering two strokes, he still visits trance parties, dancing all night. “Sometimes I look at myself and I think: Wow, beautiful, the child in me is still intact. I remain a gangster of love,” says the aging hippie. “I feel blessed having met many beautiful souls from all over the world. They taught me wonderful things.”  Trilochan Shrestha's photo collection is featured in ‘Something Big and Glorious and Magnificently Insane’ exhibition as part of the Photo Kathmandu festival in Jhochhen, 12 October-16 November.Read also: <a href="https://nepalitimes.atavist.com/feeling-groovy" target="_blank" rel="noopener">Feeling groovy</a>, Lucia de Vries <a href="http://archive.nepalitimes.com/news.php?id=7121#.W8COx_nBWUl" target="_blank" rel="noopener">Not so freaky anymore on Freak Street</a>, Alok Tumbahangphey<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/circumambulating-with-swayambhu-billy,2193" target="_blank" rel="noopener">Circumambulating with Swayambu Billy</a>, Lucia de Vries <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Philip-Blenkinsop-and-Tuomo-Manninen-in-Photo-Kathmandu,2682" target="_blank" rel="noopener">Real people, real lives</a>,  Hannan Lewsley

The Gangster of Love

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>.