The monsoon is progressing on schedule in Nepal from east to west, and there is water everywhere. It falls from sky rivers on the mountains and plains, the rivers are full, the groundwater is being replenished, and dried-up springs are flowing again.&nbsp; The monsoon is four months of too much water, but in the other eight months Nepal suffers from a lack of water. We take water for granted, but adapting to climate change means storing monsoon precipitation to last all year round. &nbsp;&nbsp; Water can be stored by household rainwater harvesting, building dams, or it can be stored underground by recharging the aquifers. The indigenous knowledge of Nepalis to replenish groundwater with ponds and lakes is being lost, and with it the capacity to adapt to weather extremes induced by climate breakdown. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240621200616_2b3d4d18565775014a60865c6f8d8cdc6072da04def371a811c02d642600b39e.jpg" data-media-id="editor_0" data-image-id="20240621200616_2b3d4d18565775014a60865c6f8d8cdc6072da04def371a811c02d642600b39e" data-rendition-name="original" width="1000" height="1333" loading="lazy" alt="Saving the waters of life NT"> <figcaption>LAKE DISTRICT: Rupa and Begnas lakes in Kaski do not just enhance tourism and fisheries, but also recharge groundwater. Photo: KUNDA DIXIT</figcaption> </figure>  In eastern Nepal, if the sacred Mai Pokhari in Ilam loses its water, the district will be almost inhabitable. If Morang’s Rajarani and Rajkumari ponds dry up, its rich aquatic flora will be gone. &nbsp; The lakes of Rupandehi and Kapilvastu are repositories of wild rice and rare plant species, and a rich wetland habitat for birds. Ghodaghodi Lake in Kailali is a biodiversity hotspot. &nbsp; Pokhara’s big lakes were formed about 800 years ago when a gigantic debris flow from the Annapurnas blocked tributaries of the Seti, but today the lakes are shrinking due to sedimentation and human encroachment.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240622140632_f040005db333620eca87162655048b7ddd8af6f76c714fe0c586fe93959f6cfb.jpg" data-media-id="editor_1" data-image-id="20240622140632_f040005db333620eca87162655048b7ddd8af6f76c714fe0c586fe93959f6cfb" data-rendition-name="original" width="1288" height="800" loading="lazy" alt="Lakes below 3000m"> </figure>  It is not just in rural Nepal that wetlands, lakes and ponds offer invaluable ecosystem services, Kathmandu Valley’s hydraulic civilisation built water channels to feed stone spouts that are functioning to this day and are marvels of engineering.&nbsp; The ponds that dotted Kathmandu, Patan and Bhaktapur also served to recharge the aquifers so community wells did not go dry and were filled with naturally filtered water. &nbsp; Nepal’s lakes, ponds and rivers have traditionally been regarded as holy because the ancients understood their importance to human survival. They have inspired poets and singers because of their beauty, but also because we used to understand their importance as storage systems.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240621200616_312a7c8cb7ba829bb3fcc25e3451acf08f8af156d6329978c1477394f6ba2556.jpg" data-media-id="editor_2" data-image-id="20240621200616_312a7c8cb7ba829bb3fcc25e3451acf08f8af156d6329978c1477394f6ba2556" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Saving the waters of life NT"> <figcaption>A water buffalo wallow pond in Kavre in 2001. Many such ponds have disappeared in the past decades. Photo: MOHAN MAINALI</figcaption> </figure>  But modern Nepal is losing this traditional knowledge. Ponds have been allowed to dry up so cities can spread over them, lakes have shrunk, wetlands have been filled up. Rivers are polluted with waste. This year’s World Environment Day on 5 June had the theme ‘Our Land, Our Future’. But land has no value without water. To restore land, prevent desertification and make it resilient against drought, we need to ensure adequate water for plant and animal life to thrive, and for farm and household use.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240621200616_90d5740da7d3f56d907bc4626b0c6a16f206a1ea7bd12dfb515b46398117d4f6.jpg" data-media-id="editor_3" data-image-id="20240621200616_90d5740da7d3f56d907bc4626b0c6a16f206a1ea7bd12dfb515b46398117d4f6" data-rendition-name="original" width="774" height="546" loading="lazy" alt="Saving the waters of life NT"> </figure>  Nearly 20 years ago, the people of Tansen dug a big pond up on Srinagar hill above the town. It was designed to prevent runoff in the monsoon that used to flood the downstream settlements, and also to replenish the groundwater table so that the springs would flow all year round.&nbsp; The people of Palpa had revived local knowledge about water conservation to ensure that the growing district headquarter had adequate supply. However, down the hill from the new pond the people were throwing rubbish into the existing Kamal Pokhari until it was completely covered. Then townspeople started building houses on top of it. The irony of the Palpa experience is that even while the town was building a new pond, it was destroying an old one. Such destruction of essential waterbodies is happening all over Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240621200616_6766748b35790e695237e787177369112bd0f857a4d8b2c38279b4726714b854.jpg" data-media-id="editor_4" data-image-id="20240621200616_6766748b35790e695237e787177369112bd0f857a4d8b2c38279b4726714b854" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Saving the waters of life NT"> <figcaption>Kamal Pokhari in Palpa in 2016.Photo: MOHAN MAINALI</figcaption> </figure>  Human civilisations have collapsed because they ran out of water due to poor planning and preparedness. It can happen again unless we restore our ponds, lakes and rivers. Reviving traditional knowledge about water will also conserve the water we do not see: underground water.&nbsp; But we in Nepal are doing exactly the opposite. We are cutting off our lifeline in the name of infrastructure and modern living. <h2>How many lakes and ponds?</h2> Of the 626 big and small lakes in Nepal below 3,000m, 21 have been degraded, and 300 are in a critical state. Only 96 are in good condition and even these are threatened by encroachment and pollution.&nbsp; There is no information about the state of 209 lakes. Hundreds of new lakes have popped up above 3,000m due to global heating. Using data from Nepal’s topographical maps from 1992 to 2001, Ukesh Raj Bhuju counted 5,358 natural ponds and lakes all over the country. Since natural ponds are rarely perfect squares or rectangles, manmade ones were not counted. Bhuju used to work for the National Lake Conservation and Development Committee which made an inventory of 3,131 lakes in 67 districts up to 3,000m elevation.&nbsp; But the most recent survey 10 years ago showed that this number has shrunk dramatically to only 626, mainly because of encroachment and most of them in the Tarai, where 53% of Nepal’s population lives. Many more lakes and ponds have probably disappeared in the past decade.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240622140632_38f28dc31b247360c2f9dda035b8a63d0c48477c16a41bac6568d0948fdf4a61.jpg" data-media-id="editor_5" data-image-id="20240622140632_38f28dc31b247360c2f9dda035b8a63d0c48477c16a41bac6568d0948fdf4a61" data-rendition-name="original" width="1324" height="810" loading="lazy" alt="Depleted ponds"> </figure>  Topographical maps used to show that Kapilvastu district had the third largest number of lakes in Nepal. Most lakes are now gone, and there are only 327 of them. These lakes and ponds are not just important for Nepal and India for groundwater recharge. They have global significance, being vital stopovers for migratory birds that travel every year back and forth from Siberia to Africa, and from Central Asia to Southeast Asia. Of these, Rara, Kosi Tappu, Mai Pokhari, Phoksundo, Bishajari, Ghodaghodi, Gokyo and other lakes are the most important for birdlife. Mai Pokhari, Bishajari and Pokhara’s lakes are being threatened by encroachment and pollution.

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Saving the waters of life

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91829c7e80680e06f0f3jpeg.jpg" alt="" width="1500" height="1109"/><figcaption>Photo: JANA ASENBRENNEROVA</figcaption></figure>This year’s World Environment Day theme ‘Ecosystem Restoration’ highlights the importance of protecting and reviving the natural habitats of living beings to restore our ecosystems.This year, 5 June also marks the formal start of the UN Decade for Ecosystem Restoration which aims to prevent, halt and reverse the degradation of nature on every continent and every ocean. <a href="https://www.iucn.org/sites/dev/files/import/downloads/payment_for_ecosystem_services_in_nepal__prospect__practice_and_process.pdf" target="_blank" rel="noopener noreferrer">Ecosystem restoration</a> is important to combat climate change, end poverty and prevent mass extinction of species.Food, climate regulation, soil conservation, landscape conservation are some of the 24 categories of ecosystem services that play a vital role in global and national economies which have been <a href="https://www.iucn.org/sites/dev/files/import/downloads/payment_for_ecosystem_services_in_nepal__prospect__practice_and_process.pdf" target="_blank" rel="noopener noreferrer">identified</a> by the Millennium Ecosystem Assessment (MEA).Some of the main <a href="https://www.researchgate.net/publication/321185248_OVERVIEW_OF_ECOSYSTEM_SERVICES_IN_NEPAL" target="_blank" rel="noopener noreferrer">benefits</a> of the <a href="https://www.cbd.int/doc/world/np/np-nr-05-en.pdf" target="_blank" rel="noopener noreferrer">118</a> ecosystems categorised in Nepal include maintaining air quality from forest ecosystems, climate regulation through absorption of greenhouse gases, recharging groundwater, assisting in agroforestry by heling natural pollination, <a href="https://www.nepalitimes.com/banner/between-existence-and-extinction-in-nepal/" target="_blank" rel="noopener noreferrer">biodiversity protection</a>, providing food, firewood, biomass and medicinal herbs for local communities.Ecosystems also play a significant role in cultural services such as recreation and religious pilgrimage, and eco-tourism in Nepal. Such services provide livelihood and an increase in quality of life for millions of Nepalis.Nepal is part of the ratified Paris Agreement and has submitted its second Nationally Determined Contribution (NDC) that aims to keep the global temperature to limit the global temperature to 1.5°C above industrial-era and zero greenhouse emission by 2050. Nepal has also signed the Kyoto Protocol, Sustainable Development Goals (SDG), the Convention on Biological Diversity (CBD).Climate change exacerbates all the other problems that Nepalis face with their natural-resource based livelihoods, agriculture-based economy and poverty, illiteracy and social exclusion.  Despite having negligible contribution to the global greenhouse emission, Nepal is the fourth most vulnerable country to climate change.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91859c7e80680e06f0f4jpeg.jpg" alt="" width="535" height="279">Overexploitation, illegal and unsustainable harvesting practices, encroachment, unplanned infrastructure development are some causes leading to the loss and degradation of forests. The <a href="https://www.nepalitimes.com/here-now/business-bureaucracy-and-politicians-all-plundering-the-chure/" target="_blank" rel="noopener noreferrer">Chure Hills</a> are already over-exploited, resulting in increasing water scarcity in Tarai.On top of all this, the climate crisis has complicated ecosystem management. An increase in temperature and precipitation patterns means vegetation and the species range are moving to higher altitudes.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b91869c7e80680e06f0f5jpeg.jpg" alt="" width="1328" height="1094">There are ways to address this. Terrace farming, plantations, controlled grazing, improved forest management practices, adoption of bio-gas, and the ban on hunting and fishing in protected areas.“Nepal has established an impressive system of conservation of biodiversity, focusing on species, ecosystems, habitats, and biomes over four decades,” says Pem Kandel, Secretary at the Ministry of Forests and Environment (MoFE). “Local communities outside of the protected areas are also conserving the ecological integrity of Nepal’s ecosystems.”Globally as well as locally, <a href="https://www.iied.org/eba-evidence-policy-nepal" target="_blank" rel="noopener noreferrer">Ecosystem-based Adaptation (EbA</a>) is the key to addressing the impact of the climate crisis by using biodiversity and ecosystem protection as a way to live with changes in climate and weather.One example of EbA in Nepal is the Panchase Protected Forest Area near Pokhara where local communities have <a href="https://panorama.solutions/en/solution/using-local-knowledge-improve-water-availability-panchase-nepal" target="_blank" rel="noopener noreferrer">revived ponds</a> for rainwater harvesting and recharging groundwater. Using locally available soil and stone, the community restored natural ponds and protected them from encroachment.“Just reviving a pond can bring back traditional conservation knowledge, restore the ecosystem and provide downstream benefits,” says Dil Bahadur Bhattarai of the Panchase Protected Forest.Pokhara Valley is also a pioneer in another innovative scheme called <a href="http://archive.nepalitimes.com/news.php?id=18437#.YLmM9C8RoWo" target="_blank" rel="noopener noreferrer">Payment for Ecosystem Services</a> which makes nature-friendly practices economically sustainable. Essentially it means downstream communities pay those up the mountain for the benefits they accrue from the protection of the ecosystem.For example, villages that have protected their forests have helped communities that depend on fishing on one of Pokhara’s lakes, Rupa<a href="https://www.researchgate.net/publication/242079996_Towards_an_innovative_approach_to_integrated_wetland_management_in_Rupa_Lake_Area_of_Nepal" target="_blank" rel="noopener noreferrer"> Tal</a> by reducing sedimentation, pollution and conserving groundwater. The cooperative pays a percentage of the revenue it earns from aquaculture on the lake to communities upstream for protecting the forest.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b918a9c7e80680e06f0f6jpeg.jpg" alt="" width="401" height="605"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121136/636b918b9c7e80680e06f0f7jpeg.jpg" alt="" width="641" height="424">Photos: LI-BIRDThe Rupa Tal initiative was designed by LI-BIRD (Local Initiatives for Biodiversity Research and Development) a Pokhara-based non-profit that has done extensive work on agrobiodiversity conservation and ecosystem restoration to improve local livelihoods."The increase in fish productivity, the yearly increase in net profits for the Rupa Lake Restoration and Fishery Cooperative and other lakes in Pokhara’s Lake Cluster such as the Begnas, Khaste, Maidi, Dipang are replicating Rupa’s successes with its Payment for Ecosystem Service,” says LI-BIRD’s Balaram Thapa.<a href="https://cdafn.org.np/wp-content/uploads/2020/10/CDAFN-CG-Best-Practices-Publication.pdf" target="_blank" rel="noopener noreferrer">Riverbank farming</a> in Mohattori is another of Nepal’s best practices in ecosystem services. Upstream conservation through reforestation, water conservation, and flood control, communities downstream were able to re-cultivate on floodplains not only providing economic welfare but also conserving the riverine ecosystem.With limited resources, Nepal has conflicting and competing priorities such as food security, livelihoods, development, infrastructure, and protecting land and livestock. Ecosystem protection is not high on the list of priorities.Nepal is now working with its international partners on a green post-Covid recovery framework that addresses climate impact, improve livelihoods, and build resilience.“This support framework aims to accelerate low-carbon, climate-resilient development by prioritising green job creation and investment to maximise Nepal’s growth, reduce emissions and vulnerability, and is sustainable,” says Simon Lucas of the Foreign, Commonwealth and Development Office (FCDO) in Kathmandu.Every dollar spent on ecosystem restoration can create up to <a href="https://www.worldenvironmentday.global/about/ecosystem-restoration" target="_blank" rel="noopener noreferrer">30 dollars</a> in economic benefit. The use of nature-based solutions not only protects the environment, but provides economic benefit to local communities.As the experience of Pokhara and Mahottari have shown, protecting the ecosystem preserves biodiversity, conserves natural resources, strengthens local economies and allows local people to adapt to the climate crisis.Diya Rijal is a communication consultant for the UK Government-funded Policy and Institutions Facility.

Economic benefits of saving the ecology

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

Visit Nepal in the monsoon

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

Nepal’s bubble economy

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

Flouting rules caused Saurya tragedy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

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Walking, working, worshipping in Patan