<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121140/636ce39e9c7e80680e096663jpeg.jpg" alt="" width="810" height="476"/><figcaption></figcaption></figure>There are an estimated 4 million digital wallet users in Nepal now. They have graduated from ATM debit/credit cards to e-banking and mobile banking to the M-wallet movement.A smartphone with a mobile number with Internet access is the only tool one needs to make payments quickly and conveniently.If you have not jumped on the <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener noreferrer">mobile wallet</a> bandwagon already, or if you have dipped your toes but want to know more before diving into the digital payment lifestyle, here is a quick recap of the top five e-wallet platforms in Nepal.eSewaNepal’s first online payment gateway (outside of e-banking) was launched in 2009 and has grown to become the top choice when it comes to mobile wallets. <a href="https://esewa.com.np/#/home" target="_blank" rel="noopener noreferrer">eSewa</a> got the first player advantage in the fintech sector, having accumulated more partners and built many tie-ups so that users can treat it as a true one-stop-shop for regular payments.Water, electricity, TV and other utility bills, school fees, movie tickets, flight or bus tickets, insurance premium payments, important fees to be paid to goverment bodies, or mobile balance top-ups, <a href="https://play.google.com/store/apps/details?id=com.f1soft.esewa&amp;hl=en&amp;gl=US" target="_blank" rel="noopener noreferrer">eSewa</a> is the go-to app for it all. Transferring funds from one user to another is just a few finger taps away, making it easy for Nepalis to lend or borrow money, casually purchase inexpensive goods and even help family and friends financially. To ensure cyber safety, eSewa has enabled biometric security (fingerprint verification) as well as MPin and password features. That said, the app does store its users’ personal data to regularly enable transactions, as do all such apps.KhaltiFast-forward to 2017, <a href="https://khalti.com/" target="_blank" rel="noopener noreferrer">Khalti</a> gives eSewa a run for its money, as it were: quickly rising to become Nepal’s second most-preferred e-wallet, thanks to a strong, creative technical team, Khalti set the new standard of a digital payment app with a smooth, simple UI/UX along with a web application to match.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://play.google.com/store/apps/details?id=com.khalti&amp;hl=en&amp;gl=US" target="_blank" rel="noopener noreferrer">Khalti</a> is a step ahead with easy onboarding of new merchant accounts, a real-time dashboard and automated reports, salary distribution and other e-banking options for companies, easy website integration for e-commerce sites, and innovatively pitching itself as a marketing strategy for lesser known businesses that need online visibility.Having tied up with over 40 banks, Khalti is no small fish and is in the market for the long haul. Besides being convenient and offering the same services as eSewa (or similar features), Khalti makes itself known for being not only customer-friendly, but business-friendly to boot.IME Pay<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://play.google.com/store/apps/details?id=com.khalti&amp;hl=en&amp;gl=US" target="_blank" rel="noopener noreferrer">IME Pay</a> is a relatively new player in the digital wallet market, but being associated with one of the biggest remittance companies, IME Remittance, it is not minor. IME started late but caught up fast by launching aggressive, widespread marketing campaigns across media and brand-building tactics like sponsoring major Nepali TV shows that receive thousands of viewers every day. With attractive cashback offers and a strong sales network, IME Pay is catching up with the rest.However, a lack of transparency and information for customers along with occasional technical issues confirm that <a href="https://play.google.com/store/apps/details?id=com.swifttechnology.imepay&amp;hl=en&amp;gl=US" target="_blank" rel="noopener noreferrer">IME Pay</a> has some ways to go. This is a classic case proving a key business lesson: investing time and effort in consistent product development and improvement is more valuable for long-term loyalty than spending on marketing and dramatically increasing sales.PrabhuPayA fintech platform that is a subsidiary product of the corporate giant Prabhu Group, comes with its perks. <a href="https://prabhupay.com/" target="_blank" rel="noopener noreferrer">PrabhuPay</a> lets users pay various utility bills as well as transfer funds within the PrabhuPay network. The app is simple and easy to use, but customers have mentioned issues with KYC form updating, lack of partnerships with popular banks and the much-missed feature of peer-to-peer money transfer that other mobile wallets offer by default.Following the footsteps of IME Pay, PrabhuPay smartly partnered with ‘The Voice of Nepal’ to become the official voting and payment partner boosted its popularity and brand status. With a few upgrades on the mobile app, bug and glitch fixing, and a significant push in tie-ups with partners, <a href="https://play.google.com/store/apps/details?id=com.prabhutech.prabhupay&amp;hl=en&amp;gl=US" target="_blank" rel="noopener noreferrer">PrabhuPay</a> can keep up with its competition.With other digital wallet platforms entering the scene, such as <a href="http://www.qpay.com.np/" target="_blank" rel="noopener noreferrer">QPay</a>, a promising entrant that entices users with high cashback offers, and <a href="https://ipay.com.np/" target="_blank" rel="noopener noreferrer">iPay</a>, a Muncha.com product that is best suited to online shoppers: Nepal’s fintech sector is moving at a rapid pace.The <a href="https://www.nepalitimes.com/here-now/nepal-goes-online-shopping-in-2020/" target="_blank" rel="noopener noreferrer">Covid-19 crisis catapulted this trend</a>, with users forced to use digital payment methods for necessary money transfers during the lockdown in 2020. With smartphones becoming increasingly affordable, widespread Internet penetration across the country, thanks to mobile data services, and the younger generation rooting for a cashless economy, urban Nepal has quickly moved from a cash-dependent economy to become digitally savvy.However, lack of education and literacy also implies lack of digital literacy. Besides, banking fees and lack of access to banks are major reasons why the less developed rural and semi-rural areas of Nepal are far from ready for <a href="https://www.nepalitimes.com/here-now/nepal-e-shopping-booms-under-covid-19/" target="_blank" rel="noopener noreferrer">digital payment systems</a>. The Nepal government is working towards digital adoption by digitising government transactions (online tax payment options), launching the National Payment Gateway, and establishing many products like ConnectIPS, ConnectRGTS and Electronic Cheque Clearing (ECC).But nationwide restrictions imposing a one-time transaction limit of Rs5,000, daily limit of Rs10,000 and monthly limit of Rs50,000 force the masses to heavily depend on physical cash and cheque payments. With digital literacy awareness, initiation for new users from the private players themselves and incentive-based strategies built for disadvantaged people, Nepal’s fintech market can grow.The future is here. We know a healthy digital economy can be corruption-free, convenient and empowering for Nepalis across all income strata.Saniaa Shah writes this fortnightly column, Tech-Away for Nepali Times.

Saniaa Shah

original

674x448

610x380

400x266

400x240

400x203

301x200

Nepal’s e-conomy rapidly goes digital

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd1589c7e80680e08f8aajpeg.jpg" alt=""/><figcaption>Photo: BIKRAM RAI</figcaption></figure>The number of Nepalis on the internet has increased dramatically during the pandemic, with high-speed mobile connectivity accounting for 59% of the total internet users, new figures by the Nepal Telecommunications Authority (NTA) this week show. Some 96% of Nepali households own mobile phones, and the proportion of smartphones with data rose rapidly during the pandemic in 2020.Some 24 million Nepalis, which is 80% of the 2011 population, currently use fixed broadband and mobile internet to browse the internet.While a majority of mobile users have 3G internet, 4G is rising fast as telecom companies encourage users to buy the service through affordable packages. <a href="https://www.nepalitimes.com/here-now/coronavirus-and-the-world-wide-web/">Coronavirus and the World Wide Web</a>, Sonia Awale <img width="652" height="195" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd15b9c7e80680e08f8abjpeg.jpg" alt="">Three telecommunications companies provide 4G Internet services in Nepal: Nepal Telecom, Ncell, and Smart Telecom. Some 6.3 million mobile users currently have access to 4G services— 2.04 million Nepal Telecom users, 4.08 million through Ncell, and 199,000 who are on Smart Telecom. Meanwhile, 5.2 million users have fixed cable and wireless broadband, with 4.8 million among them using wireless services.There are currently 127 registered internet service providers in Nepal, out of which only 40 companies have active users—only six among them are main players in Nepal’s internet market. WorldLink is the biggest service provider in the country with 422,000 active customers.Nepal Telecom, which provides internet services to 900,000 users across the country, has the WiMax Wi-Fi service, ADSL internet, as well as its recent Fibre to the Home (FTTH)—which includes voice, mobile data, and IPTV package. FTTH has already reached 300,000 users.  Nepal’s internet market has long been hampered by high prices, technological limitations and unreliable connectivity even as Nepalis have rapidly built an extensive virtual presence during the pandemic.<a href="https://www.nepalitimes.com/latest/why-internet-speed-is-slower-and-slower/">Why Internet speed is slower and slower</a>, Raju BanskotaThe bandwidth is often too narrow to support heavy traffic in Nepal’s international gateway and local networks. The cross-border connections are through underground fibre optic cable that connects ISPs to India’s Airtel and Tata. As it is, internet consumption <a href="https://www.nepalitimes.com/latest/nepal-internet-use-increases-by-35-during-lockdown/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-internet-use-increases-by-35-during-lockdown/&amp;source=gmail&amp;ust=1610004563798000&amp;usg=AFQjCNHxHgaWOdEqAhm6ySiaBpUH8Er9JQ">went up 35%</a> during the first four months of the lockdown as Nepalis shifted their social and professional lives—education, employment, and entertainment—online.Nepal’s baby steps towards distance learning <a href="https://www.nepalitimes.com/banner/lockdown-gives-distance-learning-a-boost-in-nepal/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/lockdown-gives-distance-learning-a-boost-in-nepal/&amp;source=gmail&amp;ust=1610004563798000&amp;usg=AFQjCNGAbxPMbhNEBChMeNCbaXIAegzzvQ">got a boost</a> as the lockdown replaced schools with virtual classes. But the pandemic also brought to light the glaring digital divide despite widespread mobile connectivity even as it was aided by digital education packages from Nepal Telecom and Ncell.Meanwhile, Nepal’s fledgling <a href="https://www.nepalitimes.com/here-now/nepal-goes-online-shopping-in-2020/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepal-goes-online-shopping-in-2020/&amp;source=gmail&amp;ust=1610004563798000&amp;usg=AFQjCNEY_idLUU4BYvEylGqhgBRCKaaCAA">e-commerce</a> industry is taking flight as safety concerns and convenience drive internet users to buy and sell online. The pandemic has made Nepalis health-conscious and tech-savvy, with sales of healthy food, fitness and gadgets on the rise. Nepal has also seen an upsurge in digital payments as more and more people use e-wallets to conduct transactions.Nepali internet users, already increasingly <a href="https://www.nepalitimes.com/banner/mobile-nepal-is-hooked-on-youtube/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/mobile-nepal-is-hooked-on-youtube/&amp;source=gmail&amp;ust=1610004563798000&amp;usg=AFQjCNGmpTmfKbt4d5NqnmFATePQW8cS9g">hooked on YouTube</a>, sought greener pastures on relatively newer social media like TikTok during the lockdown, helped by special offers from telecom companies. The <a href="https://www.nepalitimes.com/here-now/huge-uptick-in-tiktok-during-nepal-lockdown/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/huge-uptick-in-tiktok-during-nepal-lockdown/&amp;source=gmail&amp;ust=1610004563798000&amp;usg=AFQjCNENH4WdP1GmnpxO4mqlytuRHXmoVQ">TikTok boom</a>, which now takes up 25% of the bandwidth in Nepal, saw netizens making use of the short-form-video application as a creative and professional outlet.<a href="https://www.nepalitimes.com/banner/how-nepals-media-landscape-is-being-transformed/">Nepal’s changing media landscape</a>, Sharecast Initiative

500x500

1250x600

1084x550

Covid-19 aids Nepal’s net spread

<figure><img width="1500" height="900" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181156/636be9ea9c7e80680e0878eajpeg.jpg" alt=""/><figcaption>Actress Shilpa Maskey in Maya Handicrafts Jewelry's Asarfi mala necklace and Former Miss Nepal Shrinkhala Khatiwada promoting her own line of Glambisque palette. Photos: MAYA HANDICRAFTS JEWELRY and GLAMBISQUE INSTAGRAM</figcaption></figure>Staff at <a href="https://mayahjewelry.com/" target="_blank" rel="noopener noreferrer">Maya Handicrafts Jewelry</a> in Thamel, are busy these days managing delivery for handmade silver jewellery ordered by customers in Kathmandu, Butwal, Pokhara, Dharan, as well as from outside Nepal. The store has seen its <a href="https://www.nepalitimes.com/here-now/nepal-e-shopping-booms-under-covid-19/">online sales peak</a> despite the pandemic, making for up to 70% of total transactions. Encouraged by their success, the owners opened Nakkali, to sell gold-plated jewellery. Up to 90% sales are currently conducted through digital platforms. “Nepalis now have an easy access to online shopping because of increased Internet connectivity. This, coupled with better online service has translated into healthy digital sales. The pandemic has only accelerated the growth,” says Samir Shakya of Maya Handicrafts. Following the Covid-19 lockdown, <a href="https://www.instagram.com/glambisque/?hl=en" target="_blank" rel="noopener noreferrer">Glambisque</a>, an up-and-coming Nepali cosmetics brand, shut down its stores in Lazimpat and Labim Mall. Since then, the two-year-old company has been operating only online. The sales have been more or less the same, but 100% driven by <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener noreferrer">digital transactions</a>. “At this rate we won’t even need to have physical stores anymore when things get back to normal,” says Shalini Rana of Glambisque. “<a href="https://www.nepalitimes.com/here-now/daraz-finds-nepalis-still-shy-to-shop-online/">People weren’t comfortable</a> with online shopping in the past. Lockdowns and safety protocols however forced them to try it out. And upon finding that it’s reliable and convenient, they have now gotten used to it.” Small and medium businesses like Maya Handicrafts Jewelry and Glambisque use social media sites like Instagram and Facebook, to market their products. Increasingly, more companies are also using e-commerce platforms like Daraz and Sastodeal to advertise their goods. Payments are usually made via e-wallets (e-Sewa, Khalti, IME pay) or by cash on delivery. Goods are either home delivered or couriered if clients are outside Kathmandu.  <figure><img width="1000" height="667" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181156/636be9ee9c7e80680e0878ebjpeg.jpg" alt=""><figcaption> </figcaption></figure>“Nepal was already transitioning to e-commerce and digital market, but the pandemic sped up the process and provided a much-needed boost,” explains digital marketer, Saniaa Shah.  “Even so, businesses with a hybrid presence are ahead of the others. Also, certain categories such as healthy food, fitness and gadgets which are directly on the rise due to the pandemic are more popular,” she adds.   Many people turned to organic produce and super foods during the pandemic, with the hope of building immunity against coronavirus. The inclination towards a healthy diet and fitness caused online grocery and health stores to thrive.    The increasing need to stay ‘online’ has also had an impact on businesses selling electronic items. People have been upgrading their smartphones and computers for webinars and online classes, which increased business for gadgets and repair shops.  <a href="https://hamrobazaar.com/">Hamrobazaar</a> online classified has seen 40% increase in overall traffic since the pandemic. Categories like computers and laptops and two wheelers — because public transport is now considered unsafe — have the most enquires in this Nepali version of eBay.   Covid-19 seems to have made people health conscious as well as tech savvy.  Bibek Neupane of <a href="https://juasstore.com/" target="_blank" rel="noopener noreferrer">Juas Health Food Store</a> says, “Before the pandemic, people interested in our products used to ask for our physical stores. Now they call us up for home delivery of ayurvedic items like shilajit, and Keto diet ingredients.” Capitalising on the growing online market, former Miss Nepal Anushka Shrestha also recently launched <a href="https://www.facebook.com/makkuse.np/" target="_blank" rel="noopener noreferrer">Makkusé</a>, an online dessert store that specialises in Nepal's authentic and traditional sweets (such as Gundpak and Pustakari) with modern touch.  <figure><img width="739" height="399" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181156/636be9f09c7e80680e0878ecjpeg.jpg" alt=""><figcaption> </figcaption></figure>Not all businesses have found the trend towards online shopping as encouraging. Despite demand and overwhelming enquiries, <a href="https://misumicosmetics.com/" target="_blank" rel="noopener noreferrer">Misumi Korean cosmetics</a> in Labim Mall has not been able to stock up because they haven’t been able to import goods due to lockdowns and restrictions. The recently launched online handicraft store, <a href="https://www.durbar-square.com/" target="_blank" rel="noopener noreferrer">Durbar Square</a>, is also still waiting for sales to pick up. Even so, Suresh Shrestha of <a href="https://www.ratnabook.com/" target="_blank" rel="noopener noreferrer">Ratna Books</a> says the shift towards online shopping has other benefits besides a growth in sales. “It has also allowed us to understand the taste of our consumers. This is an invaluable information for better future planning,” he says.  <figure><img width="1000" height="667" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181156/636be9f29c7e80680e0878edjpeg.jpg" alt=""><figcaption> </figcaption></figure>Nepal’s proposed Electronic Commerce Bill is expected to standardise online transitions while protecting user data and privacy. It also has provisions for easy return, exchange and refunds, and traders found violating the rules will be fined up to Rs300,000. As per the draft, <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/outdated-laws-limited-ecommerce-hold-back-tech-industry%20,3547">e-commerce</a> businesses will need to be registered with the Company Registrar Office and obtain a licence to operate, which needs to be renewed every year. Despite the entry into Nepal’s online retail market of China’s <a href="https://www.alibaba.com/?src=sem_ggl&amp;cmpgn=407465347&amp;adgrp=26917222987&amp;fditm=&amp;tgt=kwd-40556346123&amp;locintrst=&amp;locphyscl=1011034&amp;mtchtyp=e&amp;ntwrk=g&amp;device=c&amp;dvcmdl=&amp;creative=232561557314&amp;plcmnt=&amp;plcmntcat=&amp;p1=&amp;p2=&amp;aceid=&amp;position=&amp;gclid=EAIaIQobChMI8IPYmonx7QIVCX8rCh0F_g5tEAAYASAAEgKfrvD_BwE">Alibaba</a> through <a href="https://www.nepalitimes.com/business/daraz-launches-stimulus-package-to-promote-e-commerce/">Daraz</a> and India’s <a href="https://www.flipkart.com/">Flipkart</a> via <a href="https://www.sastodeal.com/">Sastodeal</a>, e-commerce is still at a nascent stage. But one of the side effects of Covid-19 is that it is set to grow in the next few years as more people find online shopping safe, convenient and time efficient. “This boom in online shopping is driven by pandemic-induced need. It might be challenging to sustain it, but not if we improve consumers’ online shopping experience,” says Manohar Adhikari of <a href="https://foodmandu.com/" target="_blank" rel="noopener noreferrer">Foodmandu</a>. “Stocking up on quality goods, and improved infrastructure with a reliable street address system would be key in upping the online shopping game," he adds.

Sonia Awale

Nepal goes online shopping in 2020

<figure><img width="1500" height="900" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191124/636bf0cf4b0ad905ca02f033jpeg.jpg" alt=""/><figcaption>Actress Shilpa Maskey in Maya Handicrafts Jewelry's Asarfi mala necklace and Former Miss Nepal Shrinkhala Khatiwada promoting her own line of Glambisque palette. Photos: MAYA HANDICRAFTS JEWELRY and GLAMBISQUE INSTAGRAM</figcaption></figure>Staff at <a href="https://mayahjewelry.com/" target="_blank" rel="noopener noreferrer">Maya Handicrafts Jewelry</a> in Thamel, are busy these days managing delivery for handmade silver jewellery ordered by customers in Kathmandu, Butwal, Pokhara, Dharan, as well as from outside Nepal. The store has seen its <a href="https://www.nepalitimes.com/here-now/nepal-e-shopping-booms-under-covid-19/">online sales peak</a> despite the pandemic, making for up to 70% of total transactions. Encouraged by their success, the owners opened Nakkali, to sell gold-plated jewellery. Up to 90% sales are currently conducted through digital platforms. “Nepalis now have an easy access to online shopping because of increased Internet connectivity. This, coupled with better online service has translated into healthy digital sales. The pandemic has only accelerated the growth,” says Samir Shakya of Maya Handicrafts. Following the Covid-19 lockdown, <a href="https://www.instagram.com/glambisque/?hl=en" target="_blank" rel="noopener noreferrer">Glambisque</a>, an up-and-coming Nepali cosmetics brand, shut down its stores in Lazimpat and Labim Mall. Since then, the two-year-old company has been operating only online. The sales have been more or less the same, but 100% driven by <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener noreferrer">digital transactions</a>. “At this rate we won’t even need to have physical stores anymore when things get back to normal,” says Shalini Rana of Glambisque. “<a href="https://www.nepalitimes.com/here-now/daraz-finds-nepalis-still-shy-to-shop-online/">People weren’t comfortable</a> with online shopping in the past. Lockdowns and safety protocols however forced them to try it out. And upon finding that it’s reliable and convenient, they have now gotten used to it.” Small and medium businesses like Maya Handicrafts Jewelry and Glambisque use social media sites like Instagram and Facebook, to market their products. Increasingly, more companies are also using e-commerce platforms like Daraz and Sastodeal to advertise their goods. Payments are usually made via e-wallets (e-Sewa, Khalti, IME pay) or by cash on delivery. Goods are either home delivered or couriered if clients are outside Kathmandu.  <figure><img width="1000" height="667" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191124/636bf0d24b0ad905ca02f034jpeg.jpg" alt=""><figcaption> </figcaption></figure>“Nepal was already transitioning to e-commerce and digital market, but the pandemic sped up the process and provided a much-needed boost,” explains digital marketer, Saniaa Shah.  “Even so, businesses with a hybrid presence are ahead of the others. Also, certain categories such as healthy food, fitness and gadgets which are directly on the rise due to the pandemic are more popular,” she adds.   Many people turned to organic produce and super foods during the pandemic, with the hope of building immunity against coronavirus. The inclination towards a healthy diet and fitness caused online grocery and health stores to thrive.    The increasing need to stay ‘online’ has also had an impact on businesses selling electronic items. People have been upgrading their smartphones and computers for webinars and online classes, which increased business for gadgets and repair shops.  <a href="https://hamrobazaar.com/">Hamrobazaar</a> online classified has seen 40% increase in overall traffic since the pandemic. Categories like computers and laptops and two wheelers — because public transport is now considered unsafe — have the most enquires in this Nepali version of eBay.   Covid-19 seems to have made people health conscious as well as tech savvy.  Bibek Neupane of <a href="https://juasstore.com/" target="_blank" rel="noopener noreferrer">Juas Health Food Store</a> says, “Before the pandemic, people interested in our products used to ask for our physical stores. Now they call us up for home delivery of ayurvedic items like shilajit, and Keto diet ingredients.” Capitalising on the growing online market, former Miss Nepal Anushka Shrestha also recently launched <a href="https://www.facebook.com/makkuse.np/" target="_blank" rel="noopener noreferrer">Makkusé</a>, an online dessert store that specialises in Nepal's authentic and traditional sweets (such as Gundpak and Pustakari) with modern touch.  <figure><img width="739" height="399" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191124/636bf0d54b0ad905ca02f035jpeg.jpg" alt=""><figcaption> </figcaption></figure>Not all businesses have found the trend towards online shopping as encouraging. Despite demand and overwhelming enquiries, <a href="https://misumicosmetics.com/" target="_blank" rel="noopener noreferrer">Misumi Korean cosmetics</a> in Labim Mall has not been able to stock up because they haven’t been able to import goods due to lockdowns and restrictions. The recently launched online handicraft store, <a href="https://www.durbar-square.com/" target="_blank" rel="noopener noreferrer">Durbar Square</a>, is also still waiting for sales to pick up. Even so, Suresh Shrestha of <a href="https://www.ratnabook.com/" target="_blank" rel="noopener noreferrer">Ratna Books</a> says the shift towards online shopping has other benefits besides a growth in sales. “It has also allowed us to understand the taste of our consumers. This is an invaluable information for better future planning,” he says.  <figure><img width="1000" height="667" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109191124/636bf0d64b0ad905ca02f036jpeg.jpg" alt=""><figcaption> </figcaption></figure>Nepal’s proposed Electronic Commerce Bill is expected to standardise online transitions while protecting user data and privacy. It also has provisions for easy return, exchange and refunds, and traders found violating the rules will be fined up to Rs300,000. As per the draft, <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/outdated-laws-limited-ecommerce-hold-back-tech-industry%20,3547">e-commerce</a> businesses will need to be registered with the Company Registrar Office and obtain a licence to operate, which needs to be renewed every year. Despite the entry into Nepal’s online retail market of China’s <a href="https://www.alibaba.com/?src=sem_ggl&amp;cmpgn=407465347&amp;adgrp=26917222987&amp;fditm=&amp;tgt=kwd-40556346123&amp;locintrst=&amp;locphyscl=1011034&amp;mtchtyp=e&amp;ntwrk=g&amp;device=c&amp;dvcmdl=&amp;creative=232561557314&amp;plcmnt=&amp;plcmntcat=&amp;p1=&amp;p2=&amp;aceid=&amp;position=&amp;gclid=EAIaIQobChMI8IPYmonx7QIVCX8rCh0F_g5tEAAYASAAEgKfrvD_BwE">Alibaba</a> through <a href="https://www.nepalitimes.com/business/daraz-launches-stimulus-package-to-promote-e-commerce/">Daraz</a> and India’s <a href="https://www.flipkart.com/">Flipkart</a> via <a href="https://www.sastodeal.com/">Sastodeal</a>, e-commerce is still at a nascent stage. But one of the side effects of Covid-19 is that it is set to grow in the next few years as more people find online shopping safe, convenient and time efficient. “This boom in online shopping is driven by pandemic-induced need. It might be challenging to sustain it, but not if we improve consumers’ online shopping experience,” says Manohar Adhikari of <a href="https://foodmandu.com/" target="_blank" rel="noopener noreferrer">Foodmandu</a>. “Stocking up on quality goods, and improved infrastructure with a reliable street address system would be key in upping the online shopping game," he adds.

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

Nepal, Bangladesh reject Malaysian conditions

The very first frame in The Lama’s Son starts with a vision of Shangrila and the quest of a mythical utopia in the Himalaya when the rest of the world is crumbling away. It is also the personal search of filmmaker Kesang Tseten, but what he finds there are adherents of the Bon Po faith clinging to the last remnants of a culture as it erodes away like the sandstone cliffs of Mustang. “It was while editing the documentary that the story became distilled: how does what we see in the high Himalaya relate to the notion of the Shangrila idyll that especially the West ascribed to them,” asked Tseten during a recent trip to Kathmandu from Berne where he now lives. He continued: “Often and perhaps rightly criticised as an orientalist construct, I wondered if there was any basis at all to the Shangrila notion, and I hung the film on that idea.”&nbsp; Tseten takes us to the vast vistas of Mustang and Dolpo, a landscape of his Tibetan ancestors. This is as much an intimate documentation of families on Nepal’s Himalayan rimland torn between remoteness and globalness as it is about Tseten’s own quest for rootedness.&nbsp; We start from Lubra, a 3,000m village in Mustang the 15 households of which follow the Bon faith. Lama Tsultrim is from a 900-year-old lineage of the animist faith and an exponent of the tradition that is slowly being subsumed first by Buddhism and now modernism. For Tseten, the material is familiar, and not at all exotic as it is for non-Nepalis and indeed for many urban Nepalis. Bon, founded in Tibet, predates Buddhism, but over time, the two religions have come to resemble each other.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45.jpg" data-media-id="editor_0" data-image-id="20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  ‘Both believe in karma, rebirth, and that humans can become enlightened. Nature and spirits are predominant in Bon, and rituals are what keep them benign and alight,’ says Tseten, who rarely narrates in his documentaries. “This is not really a personal film as such, but it has a point of view,” Tseten said. “I decided to have a voice-over on this one and cast my presence in the film.”&nbsp; Lubra's Lama Tsultrim is called upon to perform rituals from Kagbeni and other villages, but there is no one to continue the tradition after him, which is passed from father to son. Lama Tsultrim’s son (hence the title of the film) is a sushi chef in New York and has been gone for 20 years. “The Lama is like a setting sun, his son should come back and take over his father’s responsibilities,” says a local youngster chatting with friends. “If he dies tomorrow, where do we go? We can’t just light butter lamps ourselves to the gods.” It is not only the Lama’s son who has left. The village is nearly empty, and more are planning to leave. One of them is Chimi, a teacher who will be joining her fiancé who is an Uber driver in New York. Her brother is already in Hong Kong. In Lo Manthang a local is back home for a three-month vacation after being in New York for 12 years. A shopkeeper was in Japan for several years, and has returned. “Everything has changed, our language, our tsampa, our religion. We used to work and live together, now the children live separately,” says a middle-aged woman. “There are roads now, and vehicles stop right outside our house, but what’s the point? No one stays home.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c.jpg" data-media-id="editor_1" data-image-id="20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  Like most of Tseten’s films, The Lama’s Son is an honest documentation of a place and people whose lifestyle, culture and heritage cling precariously to the past. In Dri village we come across local women filling their buckets with water. Tseten asks them why the village is so empty: “Where is everyone?” The women reply that they are “here, there and everywhere”. Then it is their turn to ask Tseten about where he lives and what he is doing in their village. Migration is a recurring theme in Tseten’s documentaries from We Corner People, In Search of the Riyal, or Saving Dolma. His previous film Diversity Plaza documented the lives of Nepali and Tibetan emigrants in Jackson Heights in the borough of Queens in New York.&nbsp; Diversity Plaza was shown at DOC NYC in 2023, and The Lama’s Son will be one of only two Asian films shown next week at one of the biggest documentary film festivals in the world.&nbsp; “The Lama’s Son is not loud, not attention grabbing but intimate, so I was surprised they chose a quiet film for a big, flashy event,” Tseten told us. In Lama’s Son, we also see how climate breakdown is impacting Nepal’s trans-Himalayan regions. Lama Tsultrim shows us the aftermath of a recent glacial flood that swept away houses and fields. The debris-covered farms are as hard as cement.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff.jpg" data-media-id="editor_2" data-image-id="20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  The nearby village of Dhey at 3,900m is a high and dry cold desert. Farmers get one crop in a year, but the springs have gone dry and there is no snow in winter. So they are relocating to New Dhey, closer to the road. We follow Kesang Tseten to Samling in Dolpo, which at 4,200m is another Bon village. Locals are preparing for the Walchu festival in which Lama Sherrab carries out elaborate rituals to appease spirits that can turn malevolent. But unlike Lama Tsultrim in Lubra, Lama Sherrab has a community of lamas to help him, including two sons, one of whom will eventually take on his role. We move on to the adjacent village of Bicher and listen in as locals talk about how despite being dirt poor, they thrive in scarcity and are resilient. “We wear sheepskin, eat stew and yak meat, and drink wine. But we are very poor, we have nothing. Look at how dirty our clothes are. We may be dirty, but we have few illnesses,” says one. But even here in Upper Dolpo, a week’s walk from the nearest road, things are changing. There are mobile phones, readymade clothes and instant noodles.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78.jpg" data-media-id="editor_3" data-image-id="20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  At the Walchu ritual, Tseten watches men and women with hand-woven blankets and down jackets sing and dance after the main ceremony. He narrates: “Bon is sustained by a way of life that fosters a fine but fragile balance between nature and people, where humans come before gods. This is what lies at the heart of Shangrila if there is such a thing.” The film then takes us half-way around the world to a Bon centre in New York, but (spoiler alert) the eponymous Lama’s son never appears. He did not want to be filmed, but it makes for a more powerful portrayal of the life of emigrants forever trapped between two worlds. “Bon villages may be in danger, but the Bon has spread widely across the world,” narrates Tseten, a director who likes to call his storytelling ethnographic, and avoids coming to an apt conclusion. Lama Sherrab’s words after the Walchu ritual is a perfect segue:&nbsp; “Whether you say om mani padme hum (in Buddhism) or matri mi yu (in Bon) they are the same. When you go up, it’s the same heavenly realm. If you go down, it’s still the lord of death who awaits. There isn’t a separate heaven and hell for Buddhists and Bon, it has to be the same for both.” &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d.jpg" data-media-id="editor_4" data-image-id="2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d" data-rendition-name="original" width="7087" height="10004" loading="lazy" alt="The Lama's Son NT"> </figure>  The Lama’s Son by Kesang Tseten, 2025 Shunyata Films To be screened at DOC NYC 16 November at 2:05PM local time, Online: 17-30 November Details <a href="https://www.docnyc.net/film/the-lamas-son/">here</a>.

The periphery cannot hold

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

Nepal needs to use its money better

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

e-wallet

Nepal’s e-conomy rapidly goes digital

Covid-19 aids Nepal’s net spread

Nepal goes online shopping in 2020

Nepal goes online shopping in 2020

Nepal, Bangladesh reject Malaysian conditions

The periphery cannot hold

Nepal needs to use its money better

Global warning bell in Belém