The September protests and worry about what is in store for Nepal in 2026 have added more uncertainty to a <a href="https://nepalitimes.com/here-now/nepal-needs-to-use-its-money-better">struggling economy</a>. Real estate transactions are stagnant, industries are operating below capacity because of declining domestic demand, the construction sector is slack, and investors are in wait-and-watch mode. In contrast, total bank deposits increased by Rs124 billion in the month before mid-October to Rs7.4 trillion. Official remittance inflows hit a record $13 billion in the past year. Nepal’s banks are flush with cash, with nowhere to put it. &nbsp; “The economy has flatlined. Non-performing assets are up, and real estate is at a standstill,” said Ashoke SJB Rana, CEO of Himalayan Bank.“There is excess liquidity in the market, with not many places to invest.” The main reason seems to be that both <a href="https://nepalitimes.com/here-now/relocate-reallocate-recover">domestic and foreign investors were spooked</a> by the targeted violence of 9 September, and are so worried about the runup to elections in March that they are holding on to their wallets. Not just businesses, the political uncertainty is keeping individuals &nbsp;from making big financial decisions.&nbsp; Sujeev Shakya, author of the <a href="https://nepalitimes.com/review/retrofitting-nepal-for-future-shocks">newly-released book Nepal 2043</a>, notes that the current doldrum is due to Nepalis playing it safe with their money. &nbsp; “People are holding on to their assets, and keeping their cash,” he says. “They are not investing in real estate, and avoiding buying gold because it is so volatile.”&nbsp; One sector in which banks have a lot of exposure is hydroelectricity, but even here recent floods have shown that this investment is <a href="https://nepalitimes.com/here-now/global-warning-bell-in-belem">increasingly at risk from climate breakdown</a>.&nbsp; Nabil Bank, with its focus on sustainable banking, for instance, has financed 56 hydropower projects with an installed capacity of 3,000MW.&nbsp; Says Nabil CEO Manoj Kumar Gyawali: “We cannot ignore unpredictable rainfall, increased glacier melt, more frequent glacier lake outburst floods, and landslides. These risks mean that while hydropower is essential, Nepal must diversify its energy mix." &nbsp;&nbsp; An open secret in the banking sector is that much of the liquidity is supected laundered money. Banks also have close ownership links with big businesses, and this means that even with a slow economy, banks lend to themselves or to each other to keep transaction volumes up.&nbsp; This is one reason for a high default rate. In the first three months of this fiscal year, 4.86% of bank loans were non-performing, meaning one out of about every 20 borrowers had defaulted. A year ago, this figure was 4.04%. Banks are therefore reluctant to lend, dampening the overall investment climate. &nbsp; Ironically, the high default rate is keeping mainstream newspapers in Nepal afloat at a time when the media business is also in crisis. Even as they suffer from a massive drop in advertising revenue, most daily newspapers often add pages to fit notices to borrowers about repayment, or announcements of bank auctions of collateral property. “While banks may be making a much smaller percentage of income compared to a few decades ago, they are still making a profit,” notes Shakya. “And so they are actually quite happy to be in this low-risk situation. Banks are conservative organisations after all.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065.jpg" data-media-id="editor_4" data-image-id="20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065" data-rendition-name="original" width="1500" height="1022" loading="lazy" alt="Banks"> <figcaption>Illustration: BHANU BHATTARAI / NEPALI TIMES ARCHIVE</figcaption> </figure>  Among the most striking videos of the September protests that was shared globally by tens of millions of people was the Hilton and Hyatt hotels and the Ncell building burning. That recognisable international brands were targeted did not just cause huge losses to owners, but also damaged Nepal’s overall investment climate. Looting Bhat-Bhateni and homes of businessmen also sent a negative message, spurring capital flight.&nbsp; “That was very bad optics for potential investors, you simply worry about the security of your investment when you see things like that,” says Himalayan Bank CEO Ashoke SJB Rana.&nbsp; Nepal will graduate to Middle Income Country status next year, and donors are set to move from aid to private investment. While this could reduce misuse of money, it could dry up grants and soft loans to the health and education sectors.&nbsp; But the harm may go deeper than just the aftermath of the September events. The recent<a href="https://nepalitimes.com/news/double-trouble-with-taxes"> double taxation issue</a> involving the Dolma Impact Fund, and an earlier controversy over Ncell’s capital gains tax have also put Nepal’s business climate in negative spotlight internationally.&nbsp; The banking sector is firmly on the side of investors. Says Ashoke Rana at Himalayan Bank: “This is a tax regime, it is absurd to order the payment of these taxes retrospectively. When investors see that the rules of the game can change arbitrarily, they won’t really want to put their money here. ” &nbsp; One of the positive changes in the ways Nepalis are using money is digital transactions through QR codes and mobile banking. With smartphones making up 70% of all mobile phones, QR transactions are easy and have become a part of daily life. ONLINE BANKING&nbsp; Most businesses and ride shares have this feature on board, and people do not need to carry a lot of cash or multiple bank cards. But as digital payments become the norm, the days of free transactions may be coming to an end.&nbsp; “Right now these transactions are free for the most part. This is a subsidy by the banks, because of course, it does cost something to make sure the payments go through,” says Rana at Himalayan Bank. “However, as income decreases, banks may have to look for ways to make money, so they may charge small percentages on each QR transaction.”&nbsp; Rapid digitisation has changed not only how customers use money, but also how banks think about their offices. Himalayan Bank’s new Thamel branch, for example, has cancelled plans to redesign the office for 20 tellers.&nbsp; “We realised that people were able to do so much of what they wanted digitally that we plan to have only four tellers,” says Rana.&nbsp; But cutting down on facilities and staff has not always made for a better customer experience at some bank branches.&nbsp; Economist Sujeev Shakya conducts ghost customer experience checks for banks which involves decoys entering banks to evaluate what it is like for somebody to set up a bank account.&nbsp; The stealth missions found that standards of service have regressed, with banks having a working environment reminiscent of government offices.&nbsp; Shakya points out that the general experience of going to the bank should be much better. “Sometimes it’s a knowledge issue -- banks may try to ask for non-disclosure contracts even when they don’t know why they want them,” he says.&nbsp; Despite digitisation, many banks still require paper-based forms and documents. Bankers and customers alike note that it feels archaic, almost absurd, to have to carry multiple copies of documents, sometimes only in Nepali lokta paper, across several family members and fill out what seems to be the same form over and over even though digital files exist. That could soon be changing as well. As more and more Nepalis adopt the National ID, banks have adopted pilot programs that use it to create bank accounts, replacing the myriad documents that customers had to previously present to officials, making all banking transactions more efficient and less of a hassle for the customer.&nbsp; DIGITAL SECURITY As Nepalis move their cash online, digital infrastructure needs to become more secure as well.&nbsp; Bankers spend quite a lot to make sure necessary digital security infrastructure is in place, but some banks could be using pirated software which are not trustworthy.&nbsp; There has to be better regulatory oversight to prevent phishing and fraud as online payments and digital banking spread across Nepal.&nbsp; Banks must also be innovative and ambitious. Says Shakya: “Nowhere else in South Asia are bank loans such a high ratio of the nation’s GDP. &nbsp;This actually points to a well-developed financial system and we have to take advantage of it."&nbsp; Shakya also notes that many bank executives in foreign countries, like Myanmar are actually Nepali, and that banks from Nepal could use their staff and know-how to partner with or acquire banks overseas.&nbsp; While these innovations are all welcome, it is unclear how Nepal's banking sector can jumpstart economic activity in the country. Nepal’s political future looks uncertain and stability is not a guarantee.&nbsp; In the face of continuing progress in hydro electricity and the IT sector seems to be the way forward to stimulate the economy.&nbsp; The GenZ movement was a wakeup call also to financial institutions and the need for greater transparency. Nabil Bank CEO Manoj Kumar Gyawali says the September protests sent a clear message that young Nepalis want an end to corruption, good governance, and real opportunities at home: "The banking sector has a &nbsp;responsibility to direct more lending toward the real economy, sectors that create jobs, build productivity, and strengthen long-term growth," he says.&nbsp; Despite a subdued investment climate, Gyawali is optimistic. "I do see early signs of improvement. Lower interest rates are beginning to restore public and business confidence. Rising remittances provide a safety net and fresh investment capacity for households," he says. "If government capital expenditure continues to improve, it will boost private sector activity."&nbsp;

Vishad Raj Onta

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Cash rich, but poor

I used to write a weekly column for Nepali Times under the nom du plume Arthabeed, and in issue <a href="https://nepalitimes.com/search?q=artha+beed+471" target="_blank">#471 on 9 October</a> 2009 the commentary was titled ‘Unleashing Nepal’.&nbsp;
It was about the country’s economic potential and peace dividend, and I wrote: ‘The list is endless and if we can make just a few of these ideas really happen, Nepal and Nepalis will surely be better off.’
It was not a great time to be an optimist, but there was a desperate need to see some light at the end of the tunnel. A glance at the South Asia Terrorism Portal (SATP) hosted at Institute for Conflict Management for 2009 makes one wonder how we survived those difficult times.&nbsp;
The situation was actually much worse than what it is today: the Constitution drafting process was stuck, there was never-ending political wrangling, the Maoist army was not yet integrated, and there were thousands of ex-guerrillas and guns around.&nbsp;
Then Prime Minister Pushpa Kamal Dahal tried to <a href="https://archive.nepalitimes.com/news.php?id=15944" target="_blank">fire the Army Chief Rookmangud Katawal</a> in May 2009, and had to quit for his pains. Even the New York Times wrote: ‘Nepal’s Premier Resigns After Power Struggle Over Army Chief’.&nbsp;
Rumour mills were working overtime like they do now, though social media platforms were not as prolific as they are today. It was text messages, emails and phone calls along with lurid tabloid headlines.&nbsp;
The rumours around coups never ended, and there were rumours about rumours. One such report read ‘Nepali Congress leader Ram Chandra Poudel said the rumour about a coup was spread by Maoists to demoralise Nepalese Army’. Poudel is now Nepal’s president.
When in May 2010, the Maoist announced they would encircle Kathmandu and declared a five day strike, it was a civil society that stood up against the bullying. There was fear that the Constituent Assembly would be dismantled.&nbsp;
Behind every action, everyone saw a foreign hand. In another one of my columns, I wondered then if the food we are eating also was fed by some foreign hand.&nbsp;
It was during such anxious times that my book Unleashing Nepal came out. Sixteen years later, in similarly anxious times, my third book Nepal 2043: Road to Prosperity is being published this week.&nbsp;
What has changed in these 16 years? Nepal’s economy had grown from $12 billion in 2009 to $44 billion in 2025. Remittances have crossed $11 billion and Nepalis reside in over 180 countries around the world.&nbsp;
The 2015 Constitution installed federalism with the concept of devolving power to the 25 million people living outside Kathmandu Valley. The size of banking and stock market has grown, so has the size of the private sector.
Nepal is sitting on $20 billion in foreign exchange reserves — enough to cover 18 months of imports. Domestic tourism makes up 60% of earnings in the hospitality sector, with social functions, internal air and road travel, domestic pilgrims dominating earnings especially outside Kathmandu Valley.&nbsp;
Nepal’s entrepreneurship has proliferated as online platforms help people sell, logistics companies transport goods and digital payment platforms ensure easy financial transactions. There is close to 100% electrification and internet penetration has accelerated the growth of micro, small and medium enterprises, transforming lives and livelihoods.
Just as in 2009, I also take a long-term view now as Nepal can aim to graduate to a high-income country in 2043. That is the year that in the Bikram Sambat calendar we mark 2100 — the beginning of a new Nepali century.&nbsp;
CORRUPTION CARTELS
On a long-distance trek there are many difficulties, some foreseen, others unforeseen that have to be overcome. One of the biggest impediments to Nepal’s economic growth have been corruption and cartels.&nbsp;
Last month’s youth movement was propelled by an anti-corruption agenda, and the sacrifices of so many lives will not be in vain as cronies and cartels are curtailed. Nepal was embarking on the next set of reforms, and what could be better than having the person who led the High-level Commission on Reforms, Rameshore Khanal becoming the interim Finance Minister.&nbsp;
No political party new or old can avoid initiating economic reforms in their election manifesto for the March elections which will be fought on issues that meet the expectations of young Nepalis — jobs, investment and global mobility.
There will be challenges. Like in 2009, the failed state narrative will continue to appear with parachute consultants landing and supporting a section of Nepali society that has benefited from selling cynicism.&nbsp;
People who have taken politics as a profession and usurped power and money will fight tooth and nail to go their old ways, and the country with them. There will be confrontation.&nbsp;
Nepal also needs to send a message to the world that it is rounding up the criminals who escaped from prisons and tracking down the weapons that were looted. Businesses and citizens need to feel safe.&nbsp;
Finally, we have to remind ourselves that we cannot change our geographical location and the current world order has brought our neighbours closer to each other.&nbsp;
Neither China nor India will like to see prolonged instability in Nepal and spilling over. And Nepal has to be ready to hitch its wagon to those two engines of global growth.
Nepalis are very good at taking super-long term views like a belief in the after life and undertake rituals to ensure a better incarnation next time. Perhaps we need to have a long term view about improving our current lives in our own lifetimes.&nbsp;
There are things to fix in the short-term, of course, but we have to plan for the future decades till 2100 Bikram Sambat.
Sujeev Shakya wrote the column Economic Sense in Nepali Times from 2001-2011 under the pseudonym Arthabeed. His book, <a href="https://nepalitimes.com/review/retrofitting-nepal-for-future-shocks">2043: Road to Prosperity</a> was being released by Penguin last week.

Planning for the year 2100

In the very first page of the first chapter of Nepal 2043: The Road to Prosperity are two maps. The first places Nepal right at the epicentre of Asia, and in the second the Kathmandu is at exactly the midpoint between Mumbai and Beijing. With his trademark optimism, author Sujeev Shakya says Nepal is not land-locked but land-linked to three billion people in China and India. We just need those two economic engines to pull us in the same direction. ‘With China and India becoming the two largest economies in the world in the next two decades … Nepal is the most valuable piece of real estate in the world,’ Shakya writes. For one thing, Nepal does not look beyond India and China for tourism — with the right policies it can attract millions of tourists just from those two countries. Nepal is set to graduate from a low- to a middle-income country by 2026 and to a high-income country in 2043 — hence the name of the book. The year 2043 in the Bikram Sambat calendar is also 2100 — a new Nepali century. The book delves into the past, present and future of Nepal and analyses enablers including hydropower, a fundamental transformation of which will drive the 2043 goal. The commoditisation of electricity will be the biggest transformation. Nepal can deploy ‘Cyber Gurkhas’ to attract foreign investors with the management of data centres with climate friendly renewable energy. Access to technology such as precision agriculture, a data-driven approach to farming to improve food production, reduce environmental impact and enhance profitability could be Nepal’s strategy into 2043 and beyond. ‘Earlier, we needed ploughs and strong hands in agriculture. Now, you need a computer and strong fingers,” Shakya writes, citing a neighbour’s son who inspects his crops from drone cameras. A farmer in an Ilam teashop tells the author he asks AI questions in Nepali, and it answers promptly. The biggest enabler of all is Nepal’s young demography with 62% of the population in the active 15-60 age bracket, while 28% are younger than 14. Nepal’s dependency ratio has dropped to the lowest in history with 100 Nepalis having to support 62 dependents. But this demographic dividend window is closing. Nepal’s total fertility rate declined from 2.62% in 1981 to 0.92% in 2021 — below replacement level. We have less than 30 years left to make the best use of the youth, many of whom are currently studying and working abroad. Nepal’s biggest resource, therefore, is its diaspora spread across the world who send home $20 billion a year. Migration is not just a necessity but an aspiration for many Nepalis, and they are an important source of contacts, investment and soft power. This young and educated group has taken advantage of connectivity and digitisation in all arenas of national life. TikTok and Instagram have become e-commerce platforms, or mobile app-riven digital services. Nepal’s software companies exported over $1 billion worth of IT products last year. Next we need a change in the bureaucratic mindset to eliminate paper and manual processes, which would also contribute to reducing corruption. Shakya comes up with many revelations: 81% of Nepalis live in houses they own, much higher than most other South Asian countries which means higher disposable income. Nepal has the highest tax-to-GDP ratio in South Asia. The banking sector is twice the size of Bangladesh despite Nepal having just one-fifth of its population. In 2021, 12.62% of the population had demat accounts in Nepal, while India had only 5.32%. For every five male investors, there are four women in Nepal while it is 10:1 in India. With such figures and prospects, how come Nepal just went through a violent uprising that took the shortest time to topple a democratically-elected government in modern history? One early chapter of 2043 is actually dedicated to how Nepalis have always thrived on chaos. When people faced up to 20 hours of power cuts a day, people worked around the load-shedding schedule, woke up at ungodly hours to cook and stock up on inverters. They did not put up a fight, or even protest. ''Generally, Nepalis are used to taking things lying down, and perhaps this also needs to change,' says Shakya, writing that line before last month’s uprising. ‘On the one hand, some of these issues speak volumes about the average Nepali’s patience and perhaps optimism that things will change in the long run. On the other hand, one is also forced to wonder how much longer they will be able to put up with unfavourable conditions if things don’t change.’ It does seem Nepali had enough with corruption, governance failure and political apathy to the concerns of ordinary people. The final chapter lists the non-negotiables to realise the 2043 Nepal Roadmap: democratic values and freedom of speech, a capitalist welfare state and socio-political transformation to tackle corruption and impunity. The book notes, ‘Countries transitioning to democratic rule experienced a 20% increase in GDP over a 25 year period compared to what they would have achieved under authoritarian regimes. After the end of the Shah rule in 2006, Nepal’s GDP rose from US$10 billion to US$44 billion by 2024.’ The government’s Vision 2030 document projects Nepal’s GDP at US$100 billion, and the Vision 2043 estimates that it will be a US$423 billion economy with a per capita of US$12,100. However, it will need more than optimism and practical action to make these projections real. China and India loom large throughout the book with examples of small city states like Singapore which have taken advantage of their strategic location. Despite the tension between India and China, the two will have to collaborate given the inherent advantages. China has replaced the United States as India’s biggest trading partner. Sujeev Shakya is a great admirer of former Singaporean diplomat and author Kishore Mahbubani, and he has written a blurb for the book. He quotes Mahbubani saying that for the past 2,000 years, apart from the last two hundred, Asian countries have dominated the world, and it is quite natural that the world’s economic centre is returning to Asia. And Nepal is strategically placed to make the most of it because of its location between two of the world’s fastest growing economies. We just have to get our politics right, and have a strategy for equitable growth in the new Nepali century.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251016091052_78b2d1495d59cd492a17693e0e770b65230c7cb749393ac6643f4676b73832ef.jpg" data-media-id="editor_0" data-image-id="20251016091052_78b2d1495d59cd492a17693e0e770b65230c7cb749393ac6643f4676b73832ef" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Sujeev Shakya book details NT"></figure>

Sonia Awale

Retrofitting Nepal for future shocks

Nepal’s public and private sector are clearing the ash and rubble from destroyed institutions to take stock after last week’s nationwide protests that cost at least 72 lives and caused widespread destruction. The most visible destruction was of buildings housing the legislature, executive, and judiciary and hundreds of other government agencies. At least 1,000 vehicles were torched, offices looted. Many of these offices first have to relocate. The Prime Minister’s Office, which was gutted, and interim <a href="https://nepalitimes.com/news/madam-prime-minister-of-nepal">Prime Minister Sushila Karki</a> have moved into the new Home Ministry Building. Similarly, the completion of the new Parliament Building may have to be expedited for just after elections next year. The Supreme Court is working out of tents before relocating to its new building which is under construction. Arson attacks have also destroyed many hardcopy court records and case files, and these will be impossible to repair. The private sector is also reeling— the Hotel Association of Nepal (HAN) says two dozen hotels mainly in Kathmandu and Pokhara sustained losses worth Rs25 billion in last week’s arson and vandalism. The &nbsp;<a href="https://nepalitimes.com/here-now/nepal-turmoil-will-hit-tourism">Hilton Hotel was completely gutted</a> and is said to have suffered Rs8 billion in damages, while the Hyatt, Varnabas and others were damaged. The jobs of 2,000 hospitality workers have been directly affected.&nbsp; Of the 28 Bhatbhateni outlets across Nepal, 21 were attacked — at least 12 were completely destroyed by fire while nine were vandalised and looted. At least 5,000 jobs are directly at risk, while tens of thousands of vendors across the country have been affected.&nbsp; ‘Amid rising unemployment and capital flight, Bhat-Bhateni has been providing employment to 22,000 youths, not only employment generation, it also significantly continues to contribute to the local economy,’ the Tamu (Gurung) Educational and Career Advancement Network (TECANET) wrote in a statement this week, urging immediate investigation into the destruction of Bhatbhateni and other public and private institutions.&nbsp; Chaudhary Group and Ncell were also among prominent corporate entities targeted by agitators, as were automobile showrooms in various cities. “The protests last week were a reflection of the loss of trust of citizens towards the Nepali nation-state,” explains economist Pushkar Bajracharya, formerly of the National Planning Commission. “The destruction of institutions and infrastructure has set Nepal back at least 10 years.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100916_1dabfef07b909c916aa462b7c0bb62a1db96ebe4f0b52d61f71140edffd429f4.jpg" data-media-id="editor_2" data-image-id="20250910100916_1dabfef07b909c916aa462b7c0bb62a1db96ebe4f0b52d61f71140edffd429f4" data-rendition-name="original" width="6677" height="4451" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>A man carrying a carton of instant noodles walks past a row of electric vehicle showrooms in Thapathali which were torched with the cars inside during the protests.</figcaption> </figure>  Nepal’s newly-appointed <a href="https://nepalitimes.com/news/nepal-interim-government-faces-first-hiccups">Finance Minister Rameshore Khanal</a> said after his swearing in on Monday that his first order of business was to make an inventory of the scale of destruction. Economists have estimated losses amounting to trillions, and experts have said the damage is greater than the 2015 earthquake.&nbsp; The majority of Nepal’s public institutions, including the Singha Durbar and the Supreme Court, parts of which were burnt to the ground, were not insured despite Nepal's history of conflict and natural disasters.&nbsp; “The events of last week should be a lesson about the need for our public sector to be insured,” says economist Kalpana Khanal of the Policy Research Institute (PRI). “We have to now decentralise risk and institutionalise risk diversification not just for the recovery and reconstruction, but for all future infrastructure projects.” The private sector is also taking stock of damage to begin the process of insurance claims, and Nepal’s insurance sector needs to calculate how much insurance and reinsurance can sustain rebuilding efforts. The damage will also reverberate across real estate sector, and has already affected the stock market. The Nepal Stock Exchange (NEPSE) is set to resume on Thursday after the share market plummeted 47.52 points last week before trading was suspended. Experts predict further market uncertainty as a more accurate account of the loss and damage is calculated. Insurance claims will then go up, leading to a further slide in share value of these companies. Nepal’s budget will also have to be redistributed to address the most immediate reconstruction needs. Finance Minister Rameshore Khanal will now have to implement what he has long recommended: to allocate budgetary items by priority rather than number of projects. “In order for our rebuilding efforts to be effective, we need to ensure that the budgetary process is redirected in a way that does not fragment the budget towards many projects as has been happening so far, but prioritises important projects,” says Khanal, who has said the emphasis will be in job creation. After being sworn in, the Minister vowed to do away with fragmented projects, directing Ministry officials to reprioritise spending and has formed a three-member task force to identify low-priority projects to redirect spending towards the reconstruction of public institutions. &nbsp; “Economic reallocation, rehabilitation, and recovery through the correct mobilisation of domestic revenue, international resources and the private sector is the way through this crisis,” says Bajracharya. Protestors last week zeroed in on Land Revenue offices, Departments of Survey, and tax offices and this will affect revenue collection across the country. Additionally, Nepal will also have to rebuild many of its institutions from the ground up during a time of decreasing bilateral aid. DEBT BURDEN Nepal is set to achieve LDC graduation in 2026, which means that multilateral aid, grants and loans for reconstruction might not be forthcoming. The additional loans and grants will carry higher interest rates, adding to Nepal’s significant debt burden. While some experts do not see the GenZ revolt having a significant impact on Nepal’s status, others point to the need to rethink LDC graduation altogether. “Nepal was not ready to graduate from LDC status even before this unrest, and in light of the recent upheaval, it is advisable to push it back,” says Bajracharya. “We can mobilise international resources if we can convince partners that we will utilise them properly— Nepal still has significant goodwill among donors.” Nepal’s foreign investment climate was already not friendly due to corruption and red tape, and now it has taken a big hit because of the international media coverage of the attacks on multinationals. This will hurt any government effort at job creation.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250916170920_fe3dfd0f14688c1354a4936640ba7d3088175fbd8605e58178f4401d22ec09bc.jpg" data-media-id="editor_4" data-image-id="20250916170920_fe3dfd0f14688c1354a4936640ba7d3088175fbd8605e58178f4401d22ec09bc" data-rendition-name="original" width="1280" height="855" loading="lazy" alt="economy post Nepal protests"> <figcaption>Hilton Hotel in Naxal which was set ablaze on 9 September by protesters. Photo: NEPAL PICTURE LIBRARY</figcaption> </figure>  Prospective investors overseas are closely watching unfolding events in Nepal, and while those in the domestic private sector that were targeted have put on outwardly brave faces and optimistic messages of rebuilding, there is worry about investment and business expansion. “The recent unrest will definitely discourage both foreign and domestic parties because a positive investment climate is unimaginable in Nepal at present,” says Bajracharya. “Investors need stability, which we lack. There also has to be assurance about the nation’s security apparatus, which showed problems last week.” Others agree that while Nepal’s investment climate has been badly dented, the nation can turn this opportunity to build better business confidence. “Foreign investors will look at our resilience during the rebuilding process, and our investment environment will be determined not necessarily by this unrest, but by how we respond to the challenges ahead,” says Khanal. “How we manage resources during reconstruction can be an opportunity to build business confidence.” The drop in investment confidence is also expected to add to the push factors driving youth out of the country in search of more stable opportunities. While remittances prop up Nepal’s economy, much of the money sent back home by Nepalis overseas is used to sustain livelihoods and does not contribute to investment and development at the national scale.&nbsp; Latest figures from Nepal Rastra Bank show that Nepal recorded a hard currency inflow of $1.27 billion in the first month of this fiscal year — a 25% increase. Nepal’s foreign current reserves are now at $20 billion. But all that money has to be invested in productive sectors to be meaningful in creating jobs. Experts say Nepal can take its recent unrest as an opportunity for true economic reform, and they cite the example of Rwanda which has risen from its genocidal war with good governance, stability and a strong emphasis on foreign investment. There are silver linings. Rameshore Khanal was the former finance secretary and a principled, no-nonsense economist. Experts as well as the public hope for a new beginning for economic reform. “Infrastructure building and development has always been vote-driven instead of priority-driven in Nepal,” notes Khanal. “Members of the Cabinet now need to be directed by evidence-based data and real experts rather than politics for optimal decision-making.” Corruption in Nepal has increased the cost of development, and the focus of the GenZ revolt was on transparency. The regime change this week could force the interim government to curb graft and spur development.&nbsp; Although most of the focus was on corrupt politicians, there was &nbsp;less prominence givem to the kleptocrats in the bureaucracy. Bribery and graft had become standard operating procedure in the civil service, and one of the factors for rising youth disillusionment.&nbsp; The hope is that this youth revolt will reduce systemic corruption in government and make governance cleaner and more efficient. A well oiled economy would then yield adequate domestic revenue to pay for rebuilding. Pushkar Bajracharya is optimistic: “Recent events have instilled a sense within Nepal’s government and bureaucracy that there will now be retaliation if they stray off course. This should make them responsible and accountable so we can recoup infrastructural, institutional, and economic losses more rapidly.”&nbsp;

Shristi Karki

Relocate, reallocate, recover

Where will Nepal be in 2050? It is only 25 years away. The country’s population will be peaking at 36 million, the poverty rate will drop to near zero. Maternal and child mortality rates will fall further. Nepal will be generating up to 40,000MW of hydro and solar power, more than half of that for export. Upgraded highways will improve connectivity, railways will make transport cheaper. Pokhara and Birganj will only be two hours away from Kathmandu. Nijgad airport could be Nepal’s new aviation hub, reducing Kathmandu’s congestion. Nepal will hitch its wagon to the engines of economic growth in India and China. Investment and job creation will reduce outmigration, Nepal's data centres will be powered with surplus electricity. Remote areas will prosper with high-value tourists. That is if all goes well. But if Nepal’s politics remains dysfunctional with incompetent leadership, then the country will muddle along as it is doing now. Society will be more unequal, public discontent may boil over as politicians resort to faith to hide failures, the exodus abroad of youth will continue. Climate breakdown will exacerbate these crises. Global average temperature will have risen to 2.7°C above pre-industrial levels (it is 1.1°C now). The remaining Himalayan icecap will shrink by half, glacial lakes will threaten valleys. The hydrology of rivers will change, reducing dry season flow. Severe and prolonged heat waves in the Tarai will force people to migrate back to the mountains. In the final analysis, it all boils down to a political system that is more accountable, and displays more integrity and efficiency. <h2>Mission 2050</h2> · Melamchi Water Supply Project · Pokhrara International Airport · Bhairawa International Airport · Upper Tama Kosi Hydroelectric Project . Kathmandu-Tarai Expressway What do these biggest infrastructure projects in Nepal have in common? All ended up being more expensive than they should, all have been delayed and are not fully operational, two were badly damaged in climate-related disasters that should have been foreseen. The $800 million Melamchi is Nepal’s most expensive infrastructure project to date. It took 30 years to build, but was nearly destroyed by a glacial debris flow in June 2021. The headworks need major repairs. The 456MW Upper Tama Kosi was severely damaged by a rockfall and floods in last September’s floods. It is still not operating at full capacity, and other hydropower plants were damaged in recent glacial floods. Pokhara and Bhairawa airports were supposed to be the new aviation gateways to Nepal to take the pressure off Kathmandu, and become game changers for tourism and pilgrimage. Nearly three years later, both handle domestic flights. Poor and inadequate design, kickbacks on contracts, cost overruns, failure of diplomacy to get India’s nod on air routes, and lack of planning and marketing have made the airports a pair of white elephants. Some of these setbacks can be blamed on natural calamities, but mostly it is political incompetence and greed, lack of accountability and poor implementation. That is no surprise, since these are the hallmarks of doing business in Nepal, often delaying projects, adding to the cost, and even when completed they are already outdated. That is the story of the last 25 years, are the next 25 going to be any different? Not if governance does not improve. “What we really need for the future is vision, idea, and understanding, and then the domestic capacity to implement them,” says infrastructure expert Surya Raj Acharya, who laments the total absence of technical and planning expertise. “None of our national highways meet technical standards, our cities are unplanned. The priority was never on quality. Politicians sold us short-term infrastructure that have now become a barrier to prosperity,” he adds. One silver lining has been private sector involvement in hydropower, and the energy strategy aims to generate 11,769MW by 2030. But hydropower is high-investment, high-risk due to climate breakdown, and ecologically damaging. “Hydropower is a good example of how government incentives and public-private partnership can work wonders, although we now have to take climate change into account,” explains economist Kalpana Khanal of the Policy Research Institute. She adds, “We now have to identify other key infrastructure areas that also enhance the growth of other sectors.” The National Planning Commission’s periodic plans guide overall social and economic strategy for the country into the coming decade. Nepal’s current five-year plan (2024-2029) has set a target of 7.3% annual economic growth against the current 3.9%, $2,351 per capita income up from $1,456 at present, and poverty reduction to 12%. The plan aims to export nearly half the hydropower generated by 2030, earning the country Rs41 billion annually. But there is no real coordination between line agencies, and bureaucratic lethargy leads to constant delays, says former member of the National Planning Commission (NPC) Min Bahadur Shahi. “Development in Nepal is still very much synonymous with building roads and bridges, and infrastructure is rudimentary,” he says. “Elsewhere in the world, digital infrastructure and governance go hand in hand, we are far behind.” The frustration of a man who served in the National Planning Commission is an indication where the problem lies: in actually executing plans and implementing strategies. “We need to prioritise projects based on our geography, climate, societal needs,” Shahi continues. “We want to push Nijgad airport when we can’t even operate Pokhara and Bhairawa. Have we even studied potential air routes and needs of international carriers?”  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250726070744_0547e5a7fd4424b5de8c279cab637ee7ebd9e65f2673b15e6dbd4eb2aa2524f2.jpg" data-media-id="editor_0" data-image-id="20250726070744_0547e5a7fd4424b5de8c279cab637ee7ebd9e65f2673b15e6dbd4eb2aa2524f2" data-rendition-name="original" width="3600" height="2400" loading="lazy" alt="Pokhara airport"><figcaption>NO FLY ZONE: Pokhara airport was supposed to be the new aviation gateway to Nepal but nearly three years after its inaguration, it mostly handles domestic flights. Photo: RADHIKA KANDEL </figcaption></figure>  TARGET PRACTICE Export of hydropower, manpower and lately information technology are the mainstays of Nepal’s economy, and will carry the country to its graduation from Least Developed Country status to a developing country in November 2026, and hopefully to middle-income by 2030. Nepal has an installed capacity of about 3,800MW, most of it from hydropower, and increased adoption of electric cars has reduced the import of petroleum products, decreasing the trade deficit with India. Meanwhile, Nepalis abroad sent home $11 billion in remittances last year, and at least $900 million in backend IT exports. But demographer Yogendra B Gurung is not impressed: “Despite the reduction in the poverty rate, and our improving income status, life expectancy, income, even maternal and infant mortality are not on par with countries with similar economic status.” He says relying on remittances is an unsustainable economic model, vulnerable to external factors and remittances are mostly spent on day-to-day needs, and not invested in productive sectors. Remittance is credited with reducing poverty in Nepal which is down to 20.27% from 42% in 1990. Money sent home by workers abroad has allowed families to afford basic healthcare and education, in turn helping to reduce childhood malnutrition and maternal mortality while improving female literacy. But the progress has stalled in recent years, and many doubt Nepal will meet its Sustainable Development Goals (SDGs) targets. The National Planning Commission has said Nepal is likely to achieve just 60% of the targets by 2030. Sex ratio at birth, which is 112 boys to 100 girls in Nepal in particular, is worrying, as it is much higher than the biological ratio of 105 to 100. This is much more pronounced in Karnali, Sudurpaschim and Madhes Provinces which suffer from historical neglect. Despite a rise in female literacy, patriarchy is still deeply entrenched and the provinces are behind the rest of the country for gender equality, education, healthcare, nutrition and economic opportunities. “Karnali is resource-rich, especially hydropower and the recent discovery of the methane gas, but inequality is much greater,” says Shahi, who is with the Karnali Integrated Rural Development and Research Centre (KIRDARC). “Federalism in Nepal is only on paper, we need a total structural reform to devolve political power to really bring about change.”  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250726070744_fd4a218656e1fbf6f13f5f87a47bfe624516c6a0232481b6be77875ae866deb9.jpg" data-media-id="editor_1" data-image-id="20250726070744_fd4a218656e1fbf6f13f5f87a47bfe624516c6a0232481b6be77875ae866deb9" data-rendition-name="original" width="3600" height="2400" loading="lazy" alt="Butwal-Narayangadh "><figcaption>The Daunne section of the Butwal-Narayangadh road notorious for traffic jams and accidents, it has been in never-ending construction for three years. Photo: BISHNU PRASAD GAUDEL / RSS </figcaption></figure>  Despite limited resources, Nepal also suffers from wasteful investment as a result of politically (mis)guided decision-making, instead of people-centric plans and policies, says demographer Gurung. “People are overwhelmingly moving to the cities but our leaders are hell bent on building roads to every village and now there are empty schools in the mountains,” he adds. Nepal needs data-driven planning but its long-term economic vision 2020-44 seems more of a wish-list than realistic goals, including average annual GDP growth of 10.5%, $12,000 per capita income and population under the absolute poverty line at 0. Other goals include raising electricity generation capacity to 40,000MW, access to motor transport to 99%, life expectancy at birth to 80, maternal mortality down to 20% and literacy to 99% and 100% access to the internet, among others. Meanwhile, Nepal is committed to net-zero by 2045 and 100% renewable energy by 2050. “Our planners have no idea what kind of infrastructure we need 20, 30 years down the line to sustain and accelerate growth. We need a big structural change in the political leadership, in technocratic planning, and for policy implementation,” says infrastructure expert Surya Raj Acharya. Meeting such targets would require large investment, and it would be unwise to rely on remittances for the longer run, especially as Nepal’s demographic dividend will diminish as it turns into an aged society by 2065. Reversing out migration requires a favourable investment climate so jobs are created. Good governance marked by accountability and transparency are the basic prerequisite for ease of doing business. But lack of rule of law and illicit funds put Nepal in the grey list of the Financial Action Task Force (FATF), the global money-laundering watchdog. “Everything comes down to a political will. The established parties must realise that if they don’t perform, they will be replaced by alternatives,” says Kalpana Khanal. “In the meantime, we must engage the youth and find ways to retain them as well as attract the diaspora to invest in Nepal.”

Nepal in 2050

Half of Nepalis think the country, and their families, are doing better than five years ago. Really?&nbsp; The prevailing narrative is that Nepalis have given up on Nepal, are fed up with geriatric serial prime ministers, and are fleeing the country in droves. But the latest <a href="https://nepalitimes.com/news/pulse-of-the-people">Sharecast Initiative poll</a> found that half the respondents felt their lives had improved, and the country was doing mostly okay. But it has become unpopular in Nepal to say that things are not so bad, and analysts who cited the survey were mercilessly trolled on social media for being ‘hope-mongers’. “There is a strong narrative that Nepali society is in a deep state of depression and most of us want to make it self-fulfilling,” says Rameshwar Bohora, editor at the digital portal Ukaalo which got much hate mail after publishing the survey findings. “What I saw in the survey result was not despair but anger and dissatisfaction at politicians, which means there is still hope.” To be sure, the poll also registered mass discontent with a dysfunctional government, its non-performance and corruption. Respondents had a long list of complaints that included unemployment, poverty, poor service delivery, inflation, etc. The survey indicated that their ultimate outlet was foreign employment.&nbsp; “The fact that people are dissatisfied with politics and criticise politicians means they still have hope and expectation, democratic politics is also the only way to improve things,” says political analyst Indra Adhikari. “People vent out their frustration to build public pressure so leaders and institutions will correct their behaviour and perform. This is how a healthy democracy works, and if we reject public opinion and treat it negatively, then it is our weakness.” Comparing previous nationwide public opinion surveys conducted over the past 20 years by Himalmedia (the publisher of Nepali Times) reveals an interesting pattern. The polls in 2013 and 2019 had similar questions: ‘Compared to a few years ago, what is the situation of the country?’ and ‘What direction is the country headed?’&nbsp; Tracking the trend, it is evident that Nepalis are becoming gradually more optimistic. One has to remember that by 2013, the post-conflict euphoria had evaporated during the fragile peace process and the Constituent Assembly was deadlocked over demands for ethnic federalism.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250131040148_1f4749940b2749c8eec2a3f056b7cfc89485332ba59db724cf87232628f6127c.jpg" data-media-id="editor_1" data-image-id="20250131040148_1f4749940b2749c8eec2a3f056b7cfc89485332ba59db724cf87232628f6127c" data-rendition-name="original" width="1309" height="731" loading="lazy" alt="Hope-mongering NT"> </figure>  Today, Nepalis are still disgusted with their rulers but on the whole feel that they can still change things through elections. Their sense of wellbeing could also be affected by remittance inflows, since nearly half of all households have at least one family member who is working abroad or is a returnee. So, is the glass half-full or half-empty? Both. The truth of the matter is that most Nepalis are angry, but not angry enough to give up hope that things will take a better turn. In fact, anger is good: it can force change if enough people vote out tried, tested, and failed incumbents in 2027. Only then can a new crop of younger leaders start to address the mountain of <a href="https://nepalitimes.com/editorial/politics-as-usual">problems that have been left unaddressed</a> for so long: poverty, social injustice, political instability, environmental crises, discrimination, inequality, exclusion, inadequate healthcare and quality education.&nbsp; The public has found some respite in the fact that service delivery and governance at the local level have improved, as they share in the survey. Local elections were held for the first time in 20 years in 2017 after Nepal adopted federalism, and it has taken time for accountability to trickle down to the grassroots. But more importantly, the current governance system allows citizens to vote out the leaders that do not perform and replace them with alternatives as they did with Kathmandu Mayor Balen Shah and RSP leader Rabi Lamichhane in 2017.&nbsp; In fact, the poll results could be the Nepali people’s way of telling the leaders of the three main parties: ‘Just you wait.’&nbsp; “Democracy is not all roses, but it also has a system to naturally filter out bad components which is especially important today when personality politics has taken over,” says Adhikari, adding that the trajectory of Nepal’s democracy has been progressive compared to other countries in the region. She adds: “Yes, our expectations haven’t been met, development and governance haven’t kept pace, we haven’t realised our true potential yet. But, considering everything, things could be much worse.” &nbsp;

‘Hope-mongering’

If there is one thing that has been consistently true for the Nepali public, it is that despite war, corruption and governance failure, they are inherent optimists. They see the good even in politicians and bureaucrats who do not deserve it.
Ever since <a href="https://archive.nepalitimes.com/page/himal-media-public-opinion-survey-2015-outcome#google_vignette">Himalmedia</a> (the publisher of Nepali Times) started conducting public opinion surveys in 2004, respondents have shown dissatisfaction with Nepal’s rulers, a majority voting ‘None of the Above’ when asked for their party preference. Yet, in annual polls after that, they have always been hopeful about the future.
It still seems to be the case. The results of the latest public opinion poll by Sharecast Initiative show that most Nepalis are fed up with the chronic poor performance of &nbsp;established political parties, but they feel the system still gives them the option of finding alternative leaders. In other words, Nepalis are angry but not angry enough to take to the streets. &nbsp;
That should explain the apparent contradiction in their responses. Asked about the living standard of their families and the direction the country is headed, half the respondents said there had been positive improvement in their lives, but about the same number said they were disillusioned with politics and politicians.
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The public’s message to the old parties is clear: perk up, or we will vote for alternative leaders like Kathmandu mayor Balen Shah or Rabi Lamichhane of the RSP. The country is ruled by a coalition of the two largest parties in Parliament, but there are no signs that they understand, or care, about the public mood.&nbsp;
The Sharecast survey was conducted among 3,000 households across 52 districts in seven provinces between 1 December 2024 to 11 January 2025. In it, more than half the respondents said that their lives and that of their families had improved in the past five years. Another 16.2% said it was worse or much worse, and for 26.70% things remained the same.
Asked about the situation of the country, again half the respondents said it had improved, citing infrastructure development as the main reason. But 24.20% said it was the same, and another 24% said it was worse. They went on to list unemployment, poverty, lack of road access or maintenance, corruption, inflation, lack of quality education and political instability as their main concerns.&nbsp;
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A new global study has found that Nepal ranks fourth in the list of countries with remittance making up the highest share of GDP. This is unsustainable but remittances are propping up not just the national economy, but also individual households. Nearly 1 million Nepalis left the country for work or study in the past year, and about 40% of young Nepali men are not in Nepal.&nbsp;
This could explain the seeming paradox between respondents saying their lives have improved, but that they are not satisfied with the political leadership. Indeed, over 70% of the poll respondents said foreign employment provided the best future. &nbsp;
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More than half the respondents felt that Nepal’s economy was in bad shape, while 24.2% thought that it was ‘very good’. Another 16.5% rated the situation as average. And since the economy is intrinsically linked to politics, a majority of respondents (68%) felt that Nepal’s politics is headed in the wrong direction. But most respondents (71%) seemed happy with the way the local government was performing, saying they received timely services at the local level.
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Respondents were also asked to pinpoint why Nepal’s leaders kept being elected over and over again. They mostly blamed ‘vote buying’ (52.10%), and 24.10% said because voters were satisfied with a candidate’s performance, with 21.80% saying voting patterns were determined by party loyalty.&nbsp;
With the government rocked by high-profile scandals exposed by the media, the Nepalis public seemed to be fed up with corruption in everyday life -- 80% of respondents said corruption was rampant, and only 0.70% said there was no corruption at all. Another 15% also admitted they had bribed government officials in the past year.
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<div class="embed-block"><iframe title="Have you had to bribe government official in the past year?" aria-label="Donut Chart" id="datawrapper-chart-lDV9s" src="https://datawrapper.dwcdn.net/lDV9s/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="462" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
When <a href="https://archive.nepalitimes.com/article/nation/nepalis-opinion-on-leaders-federalism-secularism,2508">Himalmedia conducted its 2015 annual nationwide public opinion poll</a> just before the promulgation of the new Constitution, respondents were asked if Nepal should be a Hindu state. Slightly more than half wanted Nepal to be secular.
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Interestingly, ten years later, the country is still almost equally divided between secularism and Hindu state – despite the popular narrative that if there was a referendum the country restoring the Hindu state would win overwhelmingly. Himalmedia polls after the abolition of the monarchy showed support for a return of kingship in the single digits, and although Sharecast did not have a question about it in the current poll, one can assume that support for the monarchy may have seen a slight increase as a reaction to the perceived incompetence of the established parties.&nbsp;
For the past few years, Nepal has been ruled by coalitions, often with alliances between parties with diametrically opposing ideologies even if they do not stick to it. A majority of respondents in the survey (74%) were against electoral alliances.&nbsp;
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<div class="embed-block"><iframe title="Why do the same people keep getting elected?" aria-label="Stacked Bars" id="datawrapper-chart-Oy2Hf" src="https://datawrapper.dwcdn.net/Oy2Hf/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="459" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
The current coalition came into existence supposedly to amend constitutional provisions regarding proportional representation, but the public perception is that K P Oli of the UML and the NC’s Sher Bahadur Deuba saw common cause in previous Home Minister Rabi Lamichhane of the RSP investigating top leaders in both parties for corruption.
An amendment to the Constitution scrapping proportional representation would make it more difficult for smaller parties like the RSP to gain seats in the House, as well as women candidates and those from marginalised communities. Nearly half of the respondents (46%) said major amendments to the constitution were necessary.&nbsp;
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But what should be priority areas for the government? Controlling inflation, improving the economy, creating jobs, delivery and infrastructure, governance and social injustice were the obvious picks. Environmental problems and press freedom also made it to the list, but it was clearly not the top priority of most.
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Trust in various institutions yielded some interesting results. As in previous Himalmedia polls, trust in the Nepal Army remains high (40.30%). Even the Nepal Police has recovered some of its respect (35.10%). As expected, people had a poor opinion of the office of the Prime Minister (15.30%), scoring even lower than provincial governments (20.30%).&nbsp;
Mayors and their deputies scored higher on the trust-o-meter (36.30%), and civil society improved its standing (47.70%). The mass media always scored consistently high in annual Himalmedia polls in the 2019s, with 87-90% approval ratings. It went down in previous Sharecast polls where the distinction was not made between social media and mass media, but in the current survey mainstream media trust level is higher than any other institution at 57.50%.&nbsp;
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Previous surveys have shown that although 90% of those with Internet connection used social media platforms regularly, trust in its content was below 10%. For Nepal’s mainstream press, the lesson is clear: to maintain the public trust, it should strive to defend its credibility with greater professionalism.&nbsp;
It also shows that an independent press still has a role in defending and improving Nepal's democratic system.

Pulse of the people

During the governing UML rally at Darbar Marg last month, Prime Minister K P Oli listed a host of economic woes that had rendered the country “inoperable”. His main concern was rising national debt. He said the country could not afford to take on any more loans. “The treasury is empty while our debt is sky high, revenue and manufacturing are down and smuggling is rampant,” Oli told the rally that created massive traffic jams during rush hour on Friday. “We collected 24% less revenue last year than the one before it.” But just two weeks later, the prime minister was in Beijing to sign a BRI Framework Cooperation Agreement. His coalition partner Nepali Congress (NC) had insisted that the deal should not have loan components. The Chinese did not agree, and the BRI agreement for 10 projects under an ‘aid assistance financing' (read: loans) was signed. Nepal’s public debt to GDP ratio stands at 44%. And even though the figure for China is 83% and Japan 250%, those countries have robust exports and vast reserves. A more telling statistic is that Nepal’s debt has increased 5-fold to Rs2.5 trillion in the last decade. “Indiscriminate borrowing has made us skittish about seeking more loans to finance development,” says economist Keshav Acharya. “But we are not in a position to reject loans for infrastructure.” Nepal’s national debt servicing now exceeds its capital expenditure for development. This year’s budget allocated Rs352 billion for capital expenditure, while Rs367 billion was for loan repayment. Loan repayment will increase, which means less money for development. Nepal had to raise 29% of its annual budget from borrowing because of continuing decline in revenue. Just this year, institutions including the World Bank and the ADB extended long-term low-interest loans worth Rs548 billion in budgetary support. The government has also been propping up the treasury with internal loans because it is at a deficit of Rs86 billion. Another Rs84 billion in internal loans have piled up since July. “We cannot afford to borrow uncontrollably like this, and instead take loans to invest in projects that increase economic output, create jobs, and provide returns,” adds Acharya.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241213041232_8e54cea368c357f4583322ae92649981ac8c4b50fe49b6822a6008cb39936cef.jpg" data-media-id="editor_0" data-image-id="20241213041232_8e54cea368c357f4583322ae92649981ac8c4b50fe49b6822a6008cb39936cef" data-rendition-name="original" width="1285" height="780" loading="lazy" alt="National debt graph NT"></figure>  Falling revenue collection has been exacerbated by a sluggish economy. Ironically, a decreasing import bill also means less revenue from taxes. Last fiscal year, revenue collection fell to Rs1.03 trillion from a target of Rs1.422 trillion. So far this fiscal year, only a quarter of the target has been collected. Corruption, tax evasion and capital flight also take their toll. Two monitoring teams were formed to look into tax evasion in October. The government also reduced the customs duty on gold and silver to reduce smuggling and increase revenue from legal imports. “Around 40% of imports were through informal channels even when we were able to reach our target revenue through customs,” says former Secretary Kewal Bhandari. “Smuggling has obviously become more rampant now.” Meanwhile, demand for consumer goods and real estate transactions remain sluggish, further impacting revenue. Construction and manufacturing are in a recession. The construction sector recorded negative 11.2% slump during the third quarter of the last fiscal year. Wholesale and retail trade decreased by 2.7%. The prime minister must have been briefed on these figures, which is why he sounded the alarm at his rally last month that was supposed to be a political show of strength. His government has no option but to carry out major structural reforms in laws, the tax system, and clean up the administration to ensure financial stability and push growth. The Economic Reform Commission under Finance Secretary Rameshore Khanal is supposed to offer fix-its. But this is not the first time such a Commission has been formed. Earlier recommendations were never implemented. Last year’s High-Level Tax Reform Advisory Committee led by former Finance Secretary Bidyadhar Mallik projected a revenue increase of up to Rs3 trillion annually through tax reforms. Nepal Rastra Bank Governor Maha Prasad Adhikari is proposing a campaign to build 10,000 low-cost housing units in Kathmandu under public-private partnership to kickstart the construction sector. Economist Keshav Acharya believes Nepal’s economy can be steered in a better direction with existing resources through state restructuring and prudent use of government expenditure. He warns, “We will find ourselves in an even bigger soup if we do not carry out a major shake-up to increase revenue, slash expenditure and reduce further loans.”

Near-debt experience

More than 2.5 million Nepalis left the country just in the last three years to study and work abroad. In the past year alone, <a href="https://nepalitimes.com/news/push-factors-driving-nepalis-out">nearly 900,000 students and migrant workers flew out of Kathmandu airport</a>. These figures do not include those who crossed over to India.&nbsp;
There were, of course, returnees in that period, but it is estimated that up to 16% of Nepal’s population at any given time is outside the country. Most of them are 20-35 years old, which means an estimated q<a href="https://nepalitimes.com/news/nepals-demographic-window-is-closing">uarter of all Nepalis in that age group are abroad</a>.&nbsp;
It is mandatory for students going overseas to get a certificate from the Ministry of Education, and last year alone 112,593 were issued -- nearly double the pre-Covid figure (graph, below).
Before leaving, Nepali students officially exchanged Rs117 billion last year into hard currency to pay for their education costs. The actual figure through unregulated channels is probably higher.
<div class="embed-block"><iframe title="MORE NO OBJECTIONS" aria-label="Column Chart" id="datawrapper-chart-OBL1y" src="https://datawrapper.dwcdn.net/OBL1y/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="600" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script>All graphs: RAMESH KUMAR</div>
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Meanwhile, the 4 million <a href="https://nepalitimes.com/opinion/guest-editorial/the-migration-myth">Nepali migrant workers</a> in Malaysia, Qatar, Saudi Arabia, UAE, Kuwait, Korea, Europe and elsewhere sent back through banking channels Rs1.47 trillion in remittances ($11 billion) last year. Actual figures are higher.
“The great irony is that while poorer Nepalis toil in the Gulf and Malaysia to increase our foreign exchange reserves, middle and upper class families are exchanging a part of that money to pay for college fees, travel and medical care abroad,” points out migration researcher Ganesh Gurung.
The numbers going to Australia and Canada dropped last year because of visa restrictions. But that has been more than made up by a 30% uptick in <a href="https://nepalitimes.com/here-now/nepal-s-hard-working-students-overseas">Nepali students</a> going to the US (11,261) and UK (13,339) compared to last year.
But by far the largest number of students are going to <a href="https://nepalitimes.com/banner/why-nepalis-are-flocking-to-okinawa">Japan</a> (34,731) which is also an increase of 30% over the previous year (map, below). Numbers going to <a href="https://nepalitimes.com/news/yo-man-ta-mero-nepali-ho">South Korea</a> doubled in one year to 6,889.&nbsp;
Nepalis go to 66 countries for higher studies, with <a href="https://nepalitimes.com/here-now/looking-for-the-nepali-dream">Denmark</a>, Finland and France becoming more popular, although the numbers are still much lower than the top six.
Till recently, Nepalis were the third largest number of foreign students in Australia. They were number three also in Canada. Nepalis were among the top ten in the US.
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It is no secret that many young Nepalis leaving on student visas <a href="https://nepalitimes.com/banner/migration-certificate">intend to emigrate permanently</a>.&nbsp;
Countries in the Global North experiencing declining populations know this, but find it a convenient way to allow controlled entry for much-needed workers in the service or tech sectors.
“Many young Nepalis plan to settle in first-world countries eventually, or to return only after 10-20 years,” affirms migration expert Ganesh Gurung.&nbsp;
“Destination countries benefit too, they are getting a new generation of cheap labour without having spent anything on raising or educating them. What’s more, they also earn university fees. It’s a way for them to allow calibrated migration,” he adds.
Nearly half the students coming out of 10+2 schools opt to go <a href="https://archive.nepalitimes.com/regular-columns/Between-the-lines/More-Nepali-students-settle-overseas,528">abroad for higher education</a>, leading to a significant drop in college enrolment across Nepal.&nbsp;
Just like migrant workers are a safety valve that lets the government off the hook from providing jobs at home, students going abroad allows the state to dodge its responsibility to improve higher education quality here.&nbsp;
Indeed, some argue that better universities and colleges in Nepal would not lessen the exodus of young Nepalis, because many of them intend to emigrate for good.&nbsp;
“Yes, student visas have become a means to an end, <a href="https://nepalitimes.com/editorial/hardworking-students">the goal is to work and settle</a>,” says Narottam Aryal of King’s College in Kathmandu. “But more alarming than the figures of students leaving is that we are taking it so casually, calling it normal."&nbsp;
He adds: “Let us not worry about people who will leave anyway, but focus on the students who will stay if Nepal’s higher education is system is redesigned, repurposed and reformed to foster an entrepreneurial mindset so they benefit the country.”&nbsp;
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The method of education in state-run colleges and universities are still stuck in the era of rote learning taught by under-motivated teachers using outdated curricula, regurgitating memorised answers at exam time. The university environment is politicised and there are frequent disruptions with delayed exam results.
One way to change this is twinning with international universities, but for this there has to be a less xenophobic and transparent government machinery that is open to new methods.
“Accreditations, partnerships and exchanges with institutions around the world will open up opportunities for students,” says Aryal. “The government should welcome foreign universities, they will force us to raise the standard of our education.”
Information technology and <a href="https://nepalitimes.com/here-now/grass-is-greener-overseas-for-nepals-doctors">medicine</a> are among the most lucrative options for Nepali students abroad. Institutions of higher learning in Nepal itself could specialise in inter-disciplinary liberal arts, social studies, agriculture and the environment, public health, hospitality, or heritage studies.&nbsp;
Youth are also leaving because there is no guarantee of jobs even when they get a higher degree here. <a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain">The informal sector</a> is still the biggest employer, and job options in private companies and civil service are limited.&nbsp;
Ganesh Gurung says the education sector must adapt to the changing labour market such that Nepal produces skilled human resources in the areas with high demand like <a href="https://nepalitimes.com/here-now/nursing-grievances-against-the-state">nursing</a>.
He adds, “The focus must be on our strengths. The economy can be revived by making the best use of Nepal’s natural beauty to generate jobs in the hospitality industry, and turn it into a <a href="https://nepalitimes.com/news/go-away">destination for international retirees</a>.”&nbsp;

Brain gain into brain drain

During an event at <a href="https://www.google.com/maps/search/10+Downing+Street?entry=gmail&amp;source=g" target="_blank">10 Downing Street</a> this week to celebrate 100 years of <a href="https://nepalitimes.com/editorial/1923-2023-whsle7yp">Nepal-Britain relations</a>, Prime Minister Rishi Sunak committed to helping Nepal on the matter of the climate crisis. Sunak also pledged to enhance trade, investment and economic relations with Nepal. British envoy to Nepal William O’Connor and Prime Minister Chandra Shamsher signed the <a href="https://nepalitimes.com/news/nepal-britain-mark-centenary-of-1923-treaty">Nepal-Britain Treaty of Friendship on 21 December 1923</a> which formally recognised Nepal as a sovereign country. <a href="https://nepalitimes.com/here-now/the-queen-is-dead-long-live-the-king">Queen Elizabeth II</a>, <a href="https://archive.nepalitimes.com/regular-columns/So-far-so-good/sons-of-the-famous,945">King Charles</a> and <a href="https://archive.nepalitimes.com/article/nation/Gurkhas-dying-for-others,2938">Prince Harry</a> have all visited Nepal multiple times but no British prime minister has ever come to Nepal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240521110544_a8d35fe97e4a42196220b703d7788d14d7fc92ce2a014221ba4ed72185ab067c.jpg" data-media-id="editor_6" data-image-id="20240521110544_a8d35fe97e4a42196220b703d7788d14d7fc92ce2a014221ba4ed72185ab067c" data-rendition-name="original" width="1024" height="683" loading="lazy" alt="Rishi Sunak commits to help Nepal NT"> <figcaption>British Prime Minister Rishi Sunak commits to helping Nepal with the climate crisis and economy.(Photo: Simon Walker / No 10 Downing Str)Crown copyright. Licensed under the Open Government Licence</figcaption> </figure>  But predating all of this is the recruitment of the Gurkhas in the British Army with a history of over 200 years, and Sunak also acknowledged the role of <a href="https://nepalitimes.com/opinion/the-time-has-come-for-a-gurkha-peace-corps">Nepali soldiers</a> in further strengthening bilateral relations between the two countries, as well as present day Nepali diaspora excelling in various fields in the UK. British Minister of State for Foreign Affairs Ann Marie Trevelyan who was in Nepal in December last year to mark <a href="https://nepalitimes.com/here-now/looking-back-at-the-1923-nepal-britain-treaty">the centenary</a> was also present at the ceremony. She said that Britain will continue to support and expand Nepal's development and economic efforts to help Nepal achieve middle income status. Nepali Ambassador to Britain Gyan Chandra Acharya said that the Treaty of Friendship was important to establish Nepal's presence in the international arena and in promoting international relations. He also expressed gratitude for the cooperation of the British government in the development of Nepal. Members of the Nepali diaspora in the UK, <a href="https://nepalitimes.com/here-now/gurkha-grandparents">ex-Gurkhas</a>, British parliamentarians and high-ranking officials were present at the program organised in collaboration with the Nepal Embassy in London and the Foreign and Commonwealth office.

Sunak pledges more support for Nepal

Nepalis worship the sun, and mark its seasonal passage with festivals. Adding to that spiritual reverence now is the economic relevance of solar power. Fast-flowing Himalayan rivers give Nepal a total feasible hydropower generation capacity of 48,000MW, of which only 3,600 has so far been harnessed. Yet, Nepal’s total solar power potential has been calculated to be nearly 10 times higher at 432,000MW. &nbsp; With over 300 days of sunshine a year, the country could produce 3.6 to 6.2 units of electricity per square meter based on its solar radiation levels.&nbsp; This potential, combined with decreasing installation costs of Chinese-manufactured photovoltaic cells and other means, is a viable and affordable alternative to Nepal’s over-reliance on hydropower which faces concerns about the destruction of riverine ecosystems, as well as risk from glacial lake floods caused by climate breakdown. However, restrictive domestic energy policies and geopolitical sensitivities mean Nepal is failing to diversify fast enough to tap this tremendous solar energy potential. Nepal’s hydropower generation is almost entirely from run-of-river projects that do not have large reservoirs. Many such projects in Nepal and across the Himalaya have been swept away by glacial lake outburst floods in recent years.&nbsp; Such risks and limitations to hydropower should have prompted the Nepal government to jump-start investment into solar farms, but the main reason is that the Nepal Electricity Authority (NEA) caps solar power at just 10% of total capacity. There is no official explanation, but it is likely due to the outdated perception that solar technology cannot supply a consistent energy stream at evening and morning peak loads.&nbsp; But today, there are plenty of ways around it, including pump storage schemes that use daytime solar power to pump water from a river to a reservoir and drain it to generate electricity at night. Battery technology is now more advanced, and affordable enough to make grid-scale batteries feasible.&nbsp; But then there is an issue of tariffs, which are much lower for solar at Rs5 per energy unit, and competitive bidding forces companies to lower it even further. But there is no bidding process for hydropower and licenses are given out on a first-come, first-served basis with a fixed rate of Rs6.5 per unit regardless of location.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112303118_c3280cddae6f3305d07319011dd9c187005822a9b905bb849c36b95e3ad0d516.png" data-media-id="editor_0" data-image-id="2025112303118_c3280cddae6f3305d07319011dd9c187005822a9b905bb849c36b95e3ad0d516" data-rendition-name="original" width="1109" height="887" loading="lazy" alt="Here comes the sun"> </figure>  SUPPLY VS DEMAND Hydropower is supply-driven, while solar responds to demand, so under such a discouraging scenario, solar power accounts for only 5% of Nepal’s total energy mix. “Given the environmental risks to hydropower, investors are now demanding tariffs on hydropower to be increased. So the question to the government is, are you paying more money for hydropower or willing to buy more of the cheaper solar power,” said energy entrepreneur Kushal Gurung. Solar investors are lobbying the government to raise the cap on solar power to 30% and expand zoning policies so that solar plants can be built in areas with high potential, such as Dolpo and Mustang in the trans-Himalaya. These regions are sparsely populated, arid, have a cold climate and high solar radiation levels — ideal conditions for photovoltaics. Solar power’s biggest advantage is its cost-effectiveness compared to hydropower, with the operating cost of a hydropower plant up to four times higher than of a solar plant of the same generation capacity. Investors are no longer assured of a return on investment on hydropower due to climate risk which have increased insurance premiums. “Last year, when the government opened a bidding for 800MW of solar power, the private sector was ready to invest 3,000MW. Both banks and investors were convinced about the potential for solar energy, but the government and especially the bureaucracy, was not on the same wavelength,” added Gurung.&nbsp; Interim Energy Minister Kulman Ghising is said to be interested in increasing the cap on solar energy, but there is a question whether he will remain in office since he has launched his only Ujyalo Nepal party to contest elections in March. GEOGRAPHY AND GEOPOLITICS In 2018, Nepal’s only foreign private equity form Dolma Himalayan Climate Fund (DHCF) pitched a proposal to generate 150MW from a solar farm and store 20MW of it in battery systems in Mustang to meet seasonal and daily peaks. It got approval from Investment Board Nepal (IBN) and had already poured millions into the project when the Department of Mines instructed all developers in Mustang to halt their projects, citing the discovery of uranium ore. But insiders say the real reason was due to pressure from the Chinese government’s security concerns about a Western investor being involved so close to the border with Tibet.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112303118_5946a5f1ba63f34c88f900c6d12b37d0101effb76e8a7a5397cd6451c16cd5b2.jpg" data-media-id="editor_1" data-image-id="2025112303118_5946a5f1ba63f34c88f900c6d12b37d0101effb76e8a7a5397cd6451c16cd5b2" data-rendition-name="original" width="800" height="450" loading="lazy" alt="Here comes the sun NT"> <figcaption>Photo: GHAM POWER</figcaption> </figure>  The same thing happened, but in reverse, when the Chinese company Risen Energy was interested in investing $190 million on a grid-connected 125MW photovoltaic generation system in Banke and Kapilvastu districts near the Indian border. Risen’s subsidiary, Risen Energy Singapore JV, was negotiating with IBN to commit $190 million in the project which would also store 20MW of daytime generation for morning and evening peak demand. But the agreement was not signed because the Indian authorities were concerned about Chinese involvement so close to their border. India has also refused to buy electricity from any hydropower plant in Nepal that has Chinese or other foreign investment or contractors. Indian state-owned companies are currently building or planning hydropower plants in Nepal to generate nearly 3,000MW, mostly for export.&nbsp; But not every Chinese-backed project has been blocked. In 2024, China handed over two solar-powered livelihood projects to a local community in Lalitpur — a community solar bathhouse and a rooftop photovoltaic power system. Funded by the Yunnan People’s Association for Friendship with Foreign Countries, the projects aim to improve living conditions. The initiative forms part of the Chinese Embassy’s ‘Happy Community’ program (幸福社区, Xìngfú Shèqū) under the China–South Asia Poverty Reduction and Development Cooperation Center.&nbsp; Says Gurung: “Hydropower is a geopolitical mess, but it has well and truly started in solar power too. It now all comes down to how we handle it, and we need deft diplomacy to make sure our projects are not indefinitely delayed as has happened in the past.”&nbsp; LOW-HANGING FRUIT Despite domestic restrictions and geopolitics, there are still small-scale opportunities for solar energy entrepreneurs to cash in, such as net metering. Most industries in Nepal have enough rooftop space to generate 500KW to 1MW of solar energy. Combined, they would generate a substantial amount of energy to feed into the grid. Factories, supermarkets and chain stores are often bankable and trusted by financial institutions from which they could easily get credit.&nbsp; China could also take advantage of Nepal’s high solar power potential. Given that the United States has only imposed a 10% tariff on Nepal, China could set up PV manufacturing plants in Nepal.&nbsp; However, this requires government-to-government which could run into trouble, again because of geopolitics. The same applies for the Carbon Border Adjustment Mechanism which is a carbon tariff on carbon intensive products, such as steel, cement and some electricity, imported to the European Union.&nbsp; Chinese products have suffered under this mechanism but Chinese products made in Nepal can be competitive in the European market given lower carbon tax for Nepal. Clean energy has long been an area where Nepal hopes to attract Chinese investment — not only in hydropower, but also in solar and wind energy.&nbsp; With contributions from Qian Sun, Global Voices.&nbsp;

Nepal, here comes the sun

There were two Bhutans on display during Narendra Modi’s visit this month. The first: a trusted partner, modernising rapidly with Indian support, inaugurating hydroelectric projects, and signing healthcare deals. The second: a nation that <a href="https://www.fmreview.org/gazmere-bishwo/#:~:text=In%201990%2D91%2C%20about%20a,are%20therefore%20not%20Bhutanese%20citizens.">ethnically cleansed 17% of its population </a>and has never been held accountable.
Modi chose to see only the <a href="https://kuenselonline.com/news/pm-modi-concludes-bhutan-visit-with-prayers-for-peace-and-prosperity">first </a>during his <a href="https://economictimes.indiatimes.com/news/india/india-announces-rs-4000-cr-concessional-credit-line-to-fund-energy-projects-in-bhutan/articleshow/125253915.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">11-12 November visit</a>, granting $450 million in credit, offering birthday tributes to Fourth King Jigme Singye Wangchuk, and inaugurating another hydropower project.
New Delhi has opted for strategic silence on Bhutan’s systematic persecution of the Lhotshampas in the 1990s. The displaced remain scattered across the world and in refugee camps in Nepal, their property seized, their citizenship revoked.&nbsp;
Now, on that same contested land Bhutan is building the <a href="https://nepalitimes.com/here-now/small-bhutan-dreams-big">Gelephu Mindful City (GMC)</a>, a megaproject intended to <a href="https://kuenselonline.com/news/pm-modi-announces-inr-40-billion-credit-line-new-rail-links-and-land-for-bhutanese-temple-in-varanasi">connect directly to Indian infrastructure</a>. The victims are gone, and democratic India’s values remain conspicuously absent.&nbsp;
With no Lhotshampas left to challenge the official narrative and India unwilling to raise it, Bhutan continues to suppress dissent with impunity.&nbsp;
Earlier this year, social media influencer Raghu Pati Subedi was arrested on the Assam side of Gelephu after returning from a visit to relatives in India. His family members reportedly came under intense pressure, including threats of arrest, accusing them of hiding his whereabouts. After his arrest, he was transported to Thimphu and imprisoned.
This was not an isolated incident. It is part of systemic repression that first gained international attention in the 1990s, when over 100,000 Nepali-speaking Lhotshampa were systematically stripped of their citizenship and forcibly exiled. This mass expulsion, which human rights organisations have characterised as ethnic cleansing, created a decades-long refugee crisis that continues to define the regional political and human rights landscape.&nbsp;
EXODUS
The Lhotshampa crisis of the 1990s was not a spontaneous event but the culmination of years of state-led discrimination. Through a series of legislative acts, notably the 1985 Citizenship Act and the 1989 Driglam Namzha, the ‘One Nation, One People’ policy, the Bhutanese state systematically dismantled the rights of its Nepali-speaking citizens.&nbsp;
The use of the Nepali language was suppressed, the traditional dress of the ruling ethnic group was mandated, and citizenship was revoked en masse, rendering a significant portion of the population stateless in their own homeland.
The new manuscript I am editing has harrowing accounts by the authors of those atrocities. The parallels with what happened to Subedi recently are striking and troubling, showing that even after 35 years the regime has not changed its spots. The methods may have evolved, but the repression against dissidents remains disturbingly consistent.
This refugee exodus was an immense and unasked-for burden on Nepal. Despite being a country grappling with its own political instability and limited resources, Nepal accommodated them on humanitarian grounds. Nepal has consistently advocated for a durable solution centered on the refugees’ right to safe, voluntary, and dignified repatriation.
For years, it engaged in bilateral talks with Bhutan, culminating in a joint verification process. However, these efforts ultimately foundered on what Nepal described as ‘continued rigidity and non-implementation of the agreed decisions by the Bhutanese side’.
Nepal fulfilled its moral and humanitarian duty, but the international community largely failed to hold Bhutan accountable. Bhutan’s rulers deflected global attention with the masterful narrative of Gross National Happiness (GNH), while the grim reality in the refugee camps persisted.&nbsp;
Ultimately, with repatriation proving impossible, Nepal acquiesced to a third-country resettlement program led by a group of eight countries, including the United States, Canada, and Australia. From 2007 to 2016, more than 113,500 Bhutanese refugees were resettled in <a href="https://www.unhcr.org/media/nepal-factsheet">one of the largest group resettlement programmes globally</a>, though 6,365 remain in refugee camps in eastern Nepal.
While this solution provided a lifeline for thousands, it was a tragic capitulation to Bhutan’s ethnic homogenisation project. The refugees’ right to return to their homeland has been denied. It is a cautionary tale about the limits of international diplomacy in the face of state intransigence.
Bhutan’s global brand is one of its most successful exports. The <a href="https://www.gnhcentrebhutan.org/">Gross National Happiness </a>doctrine, which promotes holistic well-being over just economic growth, has captivated the Western imagination and policymakers. It offers a vision of a mindful, environmentally conscious, and peaceful Himalayan kingdom. This carefully cultivated image has historically aimed to shield Bhutan from the level of scrutiny applied to other nations with similar human rights records.
The GNH facade, however, cracks under the weight of documented evidence. The same kingdom that champions ‘happiness’ has, for decades, maintained a justice system that human rights groups allege relies on torture, coerced confessions, and draconian laws to silence opposition.
The 1992 National Security Act, with its vague definitions of ‘treasonable acts’ against the Tsa-Wa-Sum (King, Country, and People), has been a primary tool for suppressing political dissent, particularly from the Lhotshampa.
Overlooked by the international community and ignored by global powers including India, in responding robustly to the ethnic cleansing of the 1990s sent a clear message to Thimphu: such actions could be undertaken with impunity. The monarchy emerged unscathed, its reputation burnished rather than tarnished.&nbsp;
This historical impunity now echoes in the case of Raghu Pati Subedi and the <a href="https://www.cijnepal.org/new-list-of-political-prisoners-expected-to-set-off-discussion-on-bhutans-human-rights-record">continued imprisonment of dozens of political prisoners</a> of conscience. The global community’s reluctance to challenge the GNH narrative has, in effect, become a form of complicity.
The arrest and sentencing of a social media influencer demonstrates how old tactics have been adapted for the digital age. Subedi, 40, was a new kind of threat to the state-controlled narrative and he had to be made an example of.&nbsp;
As the founder and administrator of the popular Facebook page ‘The Don of Asia’, he bypassed traditional, state-influenced media to speak directly to about 78,000 followers. His content, informational and satirical videos on rural poverty, corruption, and the GMC project, was the kind of social media activism that was deemed intolerable.
Subedi was arrested in early 2025 and sentenced to 24 years in prison. The charges allegedly stemmed from Subedi’s social media criticism of the GMC, a flagship project of Nepal-born Bhutanese fifth King Jigme Khesar Namgyel Wangchuck.&nbsp;
For <a href="https://thenewamericansmag.com/2024/11/18/the-kings-gelephu-mindfulness-city/#:~:text=Ganga%20Lamitare%2C%20who%20owns%20four,ancestors%20in%20building%20the%20nation.">Bhutanese refugees like Gangaram Lamitare</a>, the GMC represents a bitter irony, a development rising on their confiscated ancestral lands.&nbsp;
Gangaram, who owns four acres where the GMC’s international airport is now under construction, says: “Many people from villages fled at night in 1990, leaving everything behind to escape oppression. Now, the Bhutanese king and ministers are spreading falsehoods worldwide, calling this land vacant, which actually belongs to those forced to leave the country.”&nbsp;
There are signs that international support that has benefited Bhutan may be waning. The United Nations has become increasingly vocal and last year the <a href="https://www.ohchr.org/sites/default/files/documents/issues/detention-wg/opinions/session101/a-hrc-wgad-60-2024-bhutan-advance-edited-ve.pdf">UN Working Group on Arbitrary Detention</a> said the detention of several Bhutanese political prisoners was arbitrary and illegal under international law.&nbsp;
In April 2025 from a group of six UN human rights experts raised grave concerns about the use of torture, denial of fair trials, and the ‘severe chilling effect’ of Bhutan’s legal framework on civic space. These developments owe much to the consistent advocacy of the Hague-based Global Campaign for the Release of Political Prisoners in Bhutan (GCRPPB) since its formation.
However, they also reflect broader shifts in international human rights scrutiny. This places Bhutan’s key international partners, particularly the European Union, in a critical position. Bhutan enjoys lucrative benefits under the EU’s ‘Everything but Arms’ trade scheme, which grants developing countries tariff-free access to the EU market contingent on respect for human rights.&nbsp;
The EU is also a significant provider of development aid to Bhutan which provides it with substantial leverage. In April 2025, members of the <a href="https://bsky.app/profile/saskiabricmont.bsky.social/post/3lmrn5mkmrs2q">European Parliament formally called on Bhutan</a> to release all political prisoners. This action signals a growing recognition that trade and partnership cannot be divorced from human rights obligations.&nbsp;
“Bhutan’s international partners and investors, including the EU, should make it clear that they expect Bhutan to comply with its human rights obligations and release them without further delay,” says Meenakshi Ganguly, of Human Rights Watch.&nbsp;
Bhutan stands at a crossroads. Its desire for deeper global economic integration is colliding with its unresolved history of human rights abuses. The international community now has a choice: either continue being charmed by the myth of a happy shangri-la or insist that the kingdom adheres to democratic values it professes to the world.&nbsp;
Nepal’s recent Gen-Z uprising offers a lesson to Bhutan. In September, when authorities attempted to ban 26 social media, Nepali youth took to the streets and, within hours, toppled the entire pro-establishment political apparatus. Their message was clear: in an age of digital connectivity and mass mobilisation, authoritarian tactics such as detaining social media influencers are both unjust and ultimately unsustainable.
This incident echoes the prophetic warnings of Devi Bhakta Lamitare, Bhutan’s first-generation democratic leader, who died in exile in India in 2022. In his seminal 1970 book
Dankindo Bhutan, Lamitare chronicled the systematic suppression of people’s rights and envisioned a path toward liberation.
Before his death, I worked with him to update and edit this work, which the Bhutan Media Society published posthumously in 2023. In a December 2020 interview I conducted for the book on the Ganga riverbank in Haridwar, Lamitare laid out a stark three-front offensive: political mobilisation from within India to awaken resistance inside Bhutan itself, relentless pressure on New Delhi to champion democracy, and a global ‘pamphlet war’ waged by resettled Bhutanese in the West.&nbsp;
Only through such sustained action, he argues, can Bhutanese citizens win the right to choose their own rulers, a principle India, the world’s largest democracy, should be championing, not abandoning.
Binod Dhungel is the Nepal correspondent for Reporters Without Borders.
<a href="http://linkedin.com/in/dhungelbinod" target="_blank">linkedin.com/in/dhungelbinod</a>, @BinodDhungel

Bhutan imprisons social media influencer

Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday, protesting what they have called the interim government’s inadequate efforts to address the demands of the GenZ movements. The demonstrators also sought to bar the UML from gathering at Maitighar, where party chair K P Oli was expected to announce its Youth Volunteer Force on Friday. The organisers consequently relocated the event. Friday’s demonstration at Maitighar comes as UML and GenZ representatives agreed to sit down for talks in Simara, where a curfew was imposed this week after youth protestors and party cadres clashed near the airport as demonstrators sought to stop UML leaders from flying in for a political event to Simara from Kathmandu.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5.png" data-media-id="editor_0" data-image-id="20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5" data-rendition-name="original" width="2160" height="1440" loading="lazy" alt="GenZ Maitighar"> <figcaption>Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday. Photos: SUBASH SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7.png" data-media-id="editor_1" data-image-id="20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7" data-rendition-name="original" width="2160" height="1439" loading="lazy" alt="GenZ Maitighar"> </figure>  &nbsp;Nepal’s interim government is increasingly cautious about the nation’s sensitive security situation in the lead-up to the 5 March election, as evidenced by pro-monarchy businessman Durga Prasai’s midnight arrest earlier this week over his inflammatory remarks as he called for protests this month. On Thursday, the Supreme Court ordered the government to present Prasai before the court within 24 hours.&nbsp; As it stands, the UML’s inauguration of a youth collective amidst its disregard for the demands of Nepalis for party reforms and a change in leadership highlights party chair and former PM K P Oli’s continued lack of remorse for the excesses of 8 September.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9.png" data-media-id="editor_2" data-image-id="20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9" data-rendition-name="original" width="2560" height="1707" loading="lazy" alt="UML Youth Volunteer Force NT"> <figcaption>The UML launched its Youth Volunteer Force on Friday. Photos: SUMAN NEPALI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad.png" data-media-id="editor_3" data-image-id="20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad" data-rendition-name="original" width="2560" height="1706" loading="lazy" alt="UML Youth Volunteer Force"> </figure>  Families of those killed and injured on 8 September have demanded that the ousted PM and home minister be held accountable for state brutality.&nbsp; This week, Human Rights Watch published a <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">comprehensive report</a> concluding that security forces fired indiscriminately on youth-led protestors on 8 September.&nbsp; The human rights watchdog urged the Sushila Karki-led interim government to investigate the excessive use of force as well as arson, vandalism and mob attacks on individuals on 9 September. The government has created a judicial commission to inquire into the deaths of 76 people over two days of protests.&nbsp; “The recent violence in Nepal included serious human rights violations, and those responsible should be held accountable, whether they are security forces or political actors,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch.&nbsp; She added: “The government should ensure that the investigations are independent, time-bound, and transparent, and that no one found responsible for breaking the law is unfairly protected from proper prosecution.” HRW’s investigation was based on testimony from 52 witnesses, victims, journalists, healthcare workers, politicians, and sources close to security forces. Researchers also verified photos and video footage shared on social media and with researchers; and visited the scenes of protests, properties subjected to arson and vandalism, and hospitals.&nbsp; A police officer said that officers opened fire with lethal force five minutes after the District Administration Office declared an emergency curfew around Parliament. Witness accounts and analysed footage did not show grave and imminent danger to life that would justify the intentional use of lethal force, stated the human rights watchdog in the report.&nbsp; The protestors and witnesses identified security forces who fired live ammunition at the protestors by their uniforms as members of the Armed Police Force (APF) and Nepal Police’s Special Task Force (STF). &nbsp; “They literally aimed at us and started shooting,” said one witness who sheltered behind a barricade as police continued shooting.&nbsp; A retired senior police official said police had failed to follow procedures for dispersing protests and using lethal force.&nbsp; Pathologists at a Kathmandu morgue told HRW that they determined 35 cases of death caused by “high velocity gunshot wounds” to the head, neck, chest, or abdomen.&nbsp; The witness recounted being taken into custody along with 33 other protestors by STF officers in riot gear, and said that police police personnel beat him with batons. Detainees were threatened and their IDs destroyed. Several witnesses said that the mob attacks on businesses, politicians, media companies, and educational institutions were very targeted, noting the absence of security personnel on 9 September as arson and violence raged across the capital.&nbsp; Some suggested that the violence may have been instigated by infiltrators associated with various political movements.&nbsp; On Discord, the platform where a significant number of demonstrators organised, participants noted that while there were calls for peaceful movement in the days leading up to the protest, some on the platform advocated for violence.&nbsp; Human Rights Watch has said that any credible allegations of criminal acts contributing to the violence must be investigated.&nbsp; Said Ganguly: “The authorities should recognise that widespread impunity for human rights violations in the past helped enable the violence that occurred this time in Nepal. It is crucial to reverse the decades-long tendency by successive governments in Nepal to bury investigations and stall prosecutions, and to bring about accountability and security sector reform.”

Security forces targeted protestors disproportionately: HRW

&nbsp;Nepal has finally become famous the world over for something else besides Mt Everest — the GenZ Movement. The 8 September protests in Kathmandu may have been triggered by what happened in Jakarta a week previously, but it inspired street uprisings all over the world. This week, Mexico’s GenZ are clashing with riot police. Last month, the president of Madagascar fled to Dubai. <a href="https://nepalitimes.com/here-now/nepal-genzs-inspired-filipinos" target="_blank">Philippines</a>, Morocco, Peru, Timor Leste all have seen similar anti-government protests against corruption, nepotism and poor governance. A Himalayan republic, a Latin American federation, a Southeast Asian archipelago, or a North African kingdom may have little in common, their histories, religions, languages, and political systems are worlds apart. But <a href="https://www.nytimes.com/2025/10/19/world/gen-z-revolutions-protests-louvre-heist-gaza.html" target="_blank">the common thread</a> running through these demonstrations were the simulacra and symbols spread on social media platforms.&nbsp; The young crowds marching through the streets of these countries were holding up the same icons. They painted the same images on cardboard, waved the same flags, stitched the same badges on their backpacks. They chanted &nbsp;the same references from the same corners of the internet.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_2ff7cf4ce7a9590359ed18753f4977648a6db83e95dd62d602a3f81e9eec42c4.jpg" data-media-id="editor_2" data-image-id="20251122031128_2ff7cf4ce7a9590359ed18753f4977648a6db83e95dd62d602a3f81e9eec42c4" data-rendition-name="original" width="1250" height="1047" loading="lazy" alt="Meme movements"> <figcaption> One Piece reference meme on Instagram, 115K likes(Photo: Shristi Karki)</figcaption> </figure>  To anyone who did not grow up online, this looks random. To anyone who did, it feels like the most obvious thing in the world. A new kind of global identity has formed — one that cuts across nationalities and cultures. In Nepal older relatives mock the ‘जेन्जी’. My neighbour asked me if ‘GenZ’ was a new political party.&nbsp; Around the world, when youth-led protests appear, reporters and politicians ask the same question: ‘Who is the leader?’ The answer is the same: there is no leader.&nbsp; Some names come up more prominently, as people did during <a href="https://nepalitimes.com/here-now/nepal-s-historic-youth-dissensus?fbclid=IwY2xjawNPQnZleHRuA2FlbQIxMQABHk5Nazeqz3K9aNddXa-dQfCbwtId0nLclQwHzIYhTfg8tzGWXZMBJ5pjm5Qx_aem_a5JoyT1FRqzCVtnnPM7zUw" target="_blank">the Nepali protests</a>: Sudan Gurung. Miraj Dhungana, Rakshya Bam and other organisers who appeared in livestreams and interviews. But look closely and the leader is hiding in plain sight. The leader is not a person. The leader is the internet meme.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_b2319eb8d7abec7ed5e12baf1a53e0a27cfd7a49ee15c058c47cdf2603a7fa8a.png" data-media-id="editor_4" data-image-id="20251122031128_b2319eb8d7abec7ed5e12baf1a53e0a27cfd7a49ee15c058c47cdf2603a7fa8a" data-rendition-name="original" width="662" height="1038" loading="lazy" alt="Meme movements"> <figcaption>Aurafarming, 233K likes(Photo: Shristi Karki)</figcaption> </figure>  <a href="https://nepalitimes.com/here-now/nepal-s-meme-revolution" target="_blank">Memes today</a> are doing the quiet organising work that pamphlets and party cells once did. They offer identity, coordinate action, level power differences, and they do it without any central command. This is not because memes cause revolts. It is because memes are the connective tissue of a generation that grew up on the same visual language, the same jokes, the same references, and the same sense of shared digital childhood. Older generations did not share cultural symbols in the same way. Whether they read a certain comic book or watched the same cartoon depended on class, religion, caste, the country, or neighbourhood they grew up in. These divisions created stratified cultural memories.&nbsp; Today, an entire global cohort has been raised on the same visual media. The same YouTube creators. The same TikTok jokes. The same anime storylines. It is truly what McLuhan predicted the Global Village would be.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_136d009a48d8f8daee82ada1b220e0b0c8ec482b52dcd44e0942e2185a70421b.png" data-media-id="editor_6" data-image-id="20251122031128_136d009a48d8f8daee82ada1b220e0b0c8ec482b52dcd44e0942e2185a70421b" data-rendition-name="original" width="738" height="1012" loading="lazy" alt="Meme movements"> <figcaption>Masked K P Oli, 63K likes(Photo: Shristi Karki)</figcaption> </figure>  This has also created the perfect environment for <a href="https://observer.co.uk/news/international/article/revolution-20-frances-political-future-could-be-won-or-lost-by-bots-and-memes" target="_blank">memes to become political tools</a>. They are instantly recognisable, emotionally charged, and open for remixing. They allow young people to signal their values without stating them. They compress identity, anger, humour, and belonging into something that the rest of the world dismisses as unserious. The perfect example of a GenZ meme is the famous skull and crossbones in protest flags from Kathmandu to Manila to Mexico City. The Strawhat Pirates from the <a href="https://www.france24.com/en/asia-pacific/20251006-one-piece-manga-revolt-morocco-indonesia-nepal-madagascar" target="_blank">anime One Piece</a>, is a show with over 1,000 episodes and a global fanbase that spans continents. One Piece follows Luffy, a justice driven pirate who travels across a world ruled by corrupt older elites who hoard power and suppress dissent.&nbsp; It is not hard to see why that story resonates with young people who feel locked out of political systems built by generations before them. I even printed stacks of my own flyer that explained memetic warfare using Minecraft visuals and handed them out in the crowd. Each one linked to a Telegram group with the Strawhat Pirates logo called MemePack HQ.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031144_1b12e920be6e312e1dc8768d318c1d1332e32694293b48984089867e7e525a27.jpg" data-media-id="editor_9" data-image-id="20251122031144_1b12e920be6e312e1dc8768d318c1d1332e32694293b48984089867e7e525a27" data-rendition-name="original" width="1100" height="1000" loading="lazy" alt="Meme Movements"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_08b720667a9ff36537e58992c8a8030b090900847de5eecd479bbb3fc727349d.png" data-media-id="editor_10" data-image-id="20251122031128_08b720667a9ff36537e58992c8a8030b090900847de5eecd479bbb3fc727349d" data-rendition-name="original" width="696" height="1004" loading="lazy" alt="Meme movements"> <figcaption>Indonesia-Nepal comparison, 17.7K likes(Photo: Shristi Karki)</figcaption> </figure>  CULTURE EXPOSURE The Strawhat logo is not the only symbol making people protest. That would be like saying video games cause real world violence. Instead, the logo works like a modern version of mythology. It packs meaning for those who understand it. It represents loyalty, rebellion, chosen family, and resistance against unfair structures. It works as a rallying flag because it is already a shared story. And unlike older myths, it is accessible regardless of religion, caste, language, or national identity. Across Nepal, the Strawhat symbol has shown up on posters, badges, and protest outfits. But it is only one piece of a larger ecosystem of youth symbols. From Nepali meme pages remixing political speeches into ironic audios, to posts that place politicians into familiar pop culture formats, to clips that exaggerate the absurdity of daily life under slow moving governance, these are not just jokes. These are narrative units. Each post is a tiny story with its own punchline and its own political edge. Each TikTok video or meme functions like a religious shlok, a short piece of narrative that carries layers of meaning depending on who consumes it. Someone who has spent years studying a religion, in this case, inside GenZ online culture will recognise the symbols instantly. Someone outside this world will only see noise. This creates a literacy divide that is not about formal education but cultural exposure.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_2d09f075663678fe92d4e4dcc631ee6ad1aa8a99996f4c4a3649e4bf4d85132f.png" data-media-id="editor_11" data-image-id="20251122031128_2d09f075663678fe92d4e4dcc631ee6ad1aa8a99996f4c4a3649e4bf4d85132f" data-rendition-name="original" width="810" height="1208" loading="lazy" alt="Meme movements"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_d591c4dc857864cc833ffc6baece3f4c2798bbaf70b557f965463fc8f802900e.png" data-media-id="editor_12" data-image-id="20251122031128_d591c4dc857864cc833ffc6baece3f4c2798bbaf70b557f965463fc8f802900e" data-rendition-name="original" width="568" height="1124" loading="lazy" alt="Meme movements"> </figure>  Protesting youth spent countless hours scrolling, interpreting, remixing, and responding to content. They built a shared symbolic universe across borders without planning to. This is why their political movements feel leaderless. They are not following individuals. They are following stories that define what justice looks like. Stories that define who the villain is. Stories that define how to respond when power is abused. In Nepal, memes about broken roads, delayed passports, political inheritance networks, and bureaucratic absurdity circulated for months before they became slogans or chants. By the time people took to the streets, the narrative groundwork had already been completed by thousands of posts liked and shared in private. The protests did not emerge from nowhere. They emerge from years of digital storytelling. Which is why the government’s ban on 26 digital platforms on 5 September became such a rallying force. The platforms that distribute these memes are not neutral, they are actually designed to maximise engagement because engagement translates to ad revenue. Right now, there is an engineer in Silicon Valley getting paid an enormous salary to find the perfect colour shade for a singular pixel on your screen so that you linger for fractions of a second longer.&nbsp; Algorithms reward content that trigger emotion. Sometimes the emotion is delight. Sometimes it is envy. Often it is anger. When rage becomes a business model, movements built inside these systems can feel powerful but unstable. The platforms democratise attention but centralise emotion. They allow anyone to broadcast, yet they shape the emotional tone of what becomes viral.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_f22baab05910305ea435045824b25b796d5630715e2e17c3f3c0991e8371843c.png" data-media-id="editor_13" data-image-id="20251122031128_f22baab05910305ea435045824b25b796d5630715e2e17c3f3c0991e8371843c" data-rendition-name="original" width="974" height="1156" loading="lazy" alt="Meme movements"> </figure>  GenZ sits inside this tension. Empowered by the ability to speak without gatekeepers. Trapped inside systems that monetise their attention and amplify their frustration. This is why these leaderless online movements feel both organic and volatile. The algorithm filters which stories rise and which fade. It becomes an unintentional political actor. Not elected. Not accountable. Yet influencing millions. When the state is no longer the primary distributor of information, and when the algorithm becomes the new filter of reality, the public is left with a new responsibility. We have to learn to read memes the way past generations learned to read pamphlets or manifestos. A 15 second video can carry more political weight than a two hour speech. A symbol on cardboard might represent a decade of digital storytelling. Older generations often dismiss these images as childish. They are actually literacy markers of a new political class, one that does not wait for leaders. A political class fluent in remixing power, raised on global stories that feel more honest than the institutions they inherited. The youth did not create these platforms. They inherited them. But through memes they found a new language, one that lets them organise without permission. One that lets them build solidarity without needing meetings or manifestos. One that allows them to resist systems that feel too old to reform. It is time to take that seriously. Nobel Rimal is a researcher of digital culture and political communication who studied and participated in the meme driven mobilisations during the Nepal protests&nbsp;