<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209209c7e80680e0b5524jpeg.jpg" alt="" width="1079" height="1119"/><figcaption>Sundar Yatayat electric bus</figcaption></figure>There has been a spurt in imports of electric vehicles in the past six months since the government restored tax rebates, but there has not been a similar increase in the much more important battery-operated public transport sectorNepal imported 1,113 electric cars, jeeps and vans between last July and December, 2021 – nearly five times more than the same period last fiscal year when 249 such 4-wheelers were imported.“Imports of electric vehicles increased as a direct result of the government’s revenue policy to discourage fossil fuel cars,” says Nawaraj Poudel of the Nepal Energy Vehicle Association (NEVA). However, there is a 50% cash margin threshold for diesel and petrol cars, but there is no such limit for electric vehicles, which has kept the prices of battery cars high.Still, since the excise and customs duties on electric vehicles were reduced, they were competitive compared to petroleum-based vehicles which have much higher taxes.From last July to December 2021, Rs3.24 billion worth of electric four-wheelers were imported, up from only Rs105.1 million during the same period last fiscal year.However, besides the high dealer margins on electric cars making them expensive, there is also a  shortage of battery vehicles because of global supply chain disruptions. This means many customers are on six month waiting lists to buy their electric vehicles.“It is not possible to buy electric vehicles off the shelf right now,” says Dhruva Bahadur Thapa of NADA (Nepal Automobile Dealers Association) "The shortage of chips has slowed vehicle production. And this has also affected India and Nepal.”Read also: <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/">Nepal's electric future is here</a>, Sonia AwaleAlthough consumers of private vehicles have been able to reap the benefits of the government's changes in tax policy, the same has not been true for public transport.Sundar Yatayat ordered 20 Chinese electric buses, but they have been stuck at the Birganj customs checkpoint for the last three weeks because of a dispute over how much they should be taxed.“The government has fixed only 1% customs on public electric vehicles, but they said we have to pay 13% VAT and 5% tax, so we are negotiating,” says Bhesh Bahadur Thapa of Sundar Yatayat. “Apart from the taxes, the number plate charge and other fees drive up the cost of electric buses which are already more expensive than diesel buses.”A diesel bus of the same size costs up to Rs4.5 million but the tax for an electric bus alone is as much, putting the price tag of Sundar’s Chinese buses at nearly Rs20 million each.“If the government scraps the road tax for electric buses, the cost will come down by Rs1.3 million,” says Thapa. “We will sell the buses to India if the government does not review its policy.”Read also: <a href="https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/">An electric shock to Nepal's energy future</a>, Ramesh KumarNepal levies high taxes on petroleum vehicles but has been providing special rebates for the import of electric vehicles. Before fiscal year 2020/2021, electric vehicles had an excise duty of 10% and customs duty was completely waived.But the then Finance Minister Yubaraj Khatiwada, increased the excise duty 80% from zero according to the capacity of the vehicles in the budget of 2020/2021.He also increased the customs duty from 10% to 40%. This brought the import of electric vehicles to almost zero. Khatiwada had argued that such a tax policy was introduced to increase revenue and curb the drain on foreign exchange in importing luxury electric SUVs.His tax policy was widely criticised as being contrary to the policy of the government, which was to shift towards renewable. However, Khatiwada stuck to his guns.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209239c7e80680e0b5525jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>It was Khatiwada’s successor Bishnu Poudel who once more slashed the excise duty on electric vehicles and reduced the customs duty by one-fourth. However, electric vehicles would still have to pay customs duty, depending on their battery capacity.Electric vehicles up to 100kW have to pay 10% customs duty, 15% customs duty has been levied on electric vehicles of 100 to 200 kilowatts and 40% on electric vehicles of 200 to 300 kilowatts.The main reason electric buses have not been able to compete with their petroleum counterparts is that there is hardly any difference in the taxes they pay. Although the excise duty, customs and other charges on petroleum private vehicles is more than 240%, private electric vehicles pay ten times less. This has encouraged consumers to buy private electric vehicles.But in the case of public transport, even petroleum buses enjoy special tax breaks. Moreover, the showroom price of electric buses is upward of Rs10 million. Although it may look like all electric vehicles enjoy similar concessions, there is no real rebate for electric buses.“Even when consuming electricity at night, they have to pay extra in the name of demand charge. No matter whom we talk to in the government regarding change in policies favoring electric buses, nothing happens,” rues Sundar Yayat’s Thapa.Read also: <a href="https://www.nepalitimes.com/latest/why-nepal-needs-to-restore-ev-tax-subsidy/">Why Nepal needs to restore EV tax subsidy</a>, Raunab Singh KhatriEnvironmentalist Bhusan Tuladhar, who is also with Sajha Yatayat, says the government's current policy on electric vehicles is positive but inadequate: “Private petroleum cars will be gradually replaced by electric vehicles. But it is more important to replace diesel-powered buses with electric ones. That should be our priority.”He argues that private investors will not invest more on electric buses if the current customs and other policies are not revised. "If we really want to promote electric public transport, we need to provide additional tax rebates and other facilities. Other countries, including India, have offered similar concessions,” he says. “Electric public transport will have a direct impact on public health by reducing vehicular emission and air pollution.”Bishwas Gauchan of Institute for Integrated Development Studies (IIDS) says that the existing policy of providing tax exemption on electric vehicles is itself lopsided. "Tax exemption should be for public vehicles, not private ones,” he says.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209269c7e80680e0b5526jpeg.jpg" alt="" width="1500" height="1061">Since big buses, taxis and two-wheelers are responsible for more of the carbon emissions as they travel more distances, they should be prioritised in government policies. “There is no need to rush tax exemptions for private electric vehicles to the detriment of the economy," says Gauchan.Tuladhar also agrees that two-wheelers which make up about 80% of vehicles in the country and a major emitter of poisonous carbon monoxide, should be prioritised. He argues that taxes and other benefits should be provided to electric two-wheelers to reduce pollution and carbon emission.According to the Economic Survey 2021, two-wheelers account for 79.3% of the 3.987 million vehicles registered by February 2021.The Delhi state government in India has introduced a policy that when delivery companies buy new vehicles, a certain percentage of them should be electric. "Even in Nepal, policies targeting electric two-wheelers need to be put forward. Additional concessions are needed to promote electric two wheelers," says Tuladhar.NEVA’s Nawaraj Poudel argues that due to the high prices, complex geographical location of Nepal and lack of charging stations, electric two-wheelers have not been able to compete with petroleum ones.Although imports of electric motorcycles and scooters have tripled since last year, this is far less than the number of petroleum two-wheelers. Around 300,000 new two-wheelers are added to the roads of Nepal every year.More than a dozen brands of electric two-wheelers are currently sold in Nepal. Sanjeev Shilpakar, director of E-Motors at Yoma which sells TailG two-wheelers, says that the new Rs10,000 road development fee has discouraged consumers."In addition to the road development fee, consumers still need to pay 40% tax under various names," he says.Another reason that electric two-wheelers have failed to gain traction in the market may also be attributed to their higher cost. The price of electric two-wheelers in Nepal is much higher than the international market since the dealers keep a higher margin.Shilpakar refutes this, saying that the transportation cost itself is higher and the bikes have to be modified to fit Nepal’s terrain. He adds, "Although the cost price of electric two-wheelers is higher than petroleum ones, the operating cost is definitely lower."Import of electric vehicles in the last five years:Fiscal year                          Electric four wheelers    Electric two wheelers2021/22 (6months)          1,103                                    1,9222020/2021                         249                                      2,3332019/2020                         575                                      3902018/2019                         4,745                                    2,0472017/2018                         5,239                                    1,004Source: Revenue DepartmentRead more:<a href="https://www.nepalitimes.com/latest/nepal-backs-evs-to-boost-hydro-electricity-uptake/">Nepal backs EVs to boost hydro-electrivity uptake</a>,  Nepali Times

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Nepal goes electric, but conditions apply

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac079c7e80680e077f0ejpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Prime Minister K P Oli inaugurating the first electric bus service in 2018 after announcing 20% of vehicles in Nepal would be battery-powered by 2020. The government did not allow those electric buses to go into service, and has now reversed its tax policy favouring battery-operated vehicles. Photo: Bikram Rai</figcaption></figure>Developing countries are usually late-comers in adapting to advanced technologies, but new innovations like battery-powered cars give countries like Nepal the chance to leapfrog to clean and green energy.Nepal has been kept back by poor and limited education, low levels of industrialisation and bad governance. However, this actually puts the country in a position to catch up through the adoption of new technologies.Especially when it comes to energy and the environment, Nepal does not need to reinvent the wheel. It just has to build on past policies that have worked – like the community forestry program, manage hydropower to generate surplus electricity, and restore tax subsidies for electric vehicles.When Sajha Yatayat introduced <a href="https://en.setopati.com/market/132700">five new BYD electric buses </a>in 2018, there was great optimism that Nepal was on the right path. Prime Minister K P Oli himself inaugurated those buses by riding them into Singha Darbar, and announced that 20% of vehicles in country would be electric in two years time. Well, it is now 2020 and instead of promoting EVs, this year’s budget has withdrawn the tax breaks for battery-powered cars.Nepal needs to foster a new climate for investment in green technologies with a paradigm shift in reducing the technology gap. One such paradigm shift had been the tax concessions on electric vehicles, but Finance Minister Yuvaraj Khatiwada’s budget raised <a href="https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/">excise tax by 40% with another 60% of custom duty</a> and put a question mark on the government’s commitments to its own sustainability goals.There are two compelling reasons to support EV growth: controlling air pollution and cutting petroleum imports. <a href="https://www.nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking/">An estimated 35,000 people die annually</a> from pollution emitted by fuel-driven vehicles. Nearly <a href="https://oec.world/en/profile/country/npl">15% of Nepal’s total imports</a> is for petroleum making it Nepal’s number one item of import.According to <a href="https://gggi.org/site/assets/uploads/2020/02/GGGI_Nepal_Investment-Projects-for-Electric-Mobility_Final.pdf">Global Green Growth Institute</a>, proposed new 6.8GW of hydropower projects will give Nepal excess electricity supply in next few years. Electrifying the transportation sector will allow <a href="https://www.nepalitimes.com/latest/nepals-chance-to-green-its-budget/">proper utilisation of domestic resources</a>, and enable  new innovative business strategies for energy sufficiency.To benefit from both aspects, the government needs proactive subsidies to encourage the adoption of electric vehicles. This not only helps in low-cost access to electric vehicles, but also create the environment to <a href="https://gggi.org/site/assets/uploads/2020/02/GGGI_Nepal_Investment-Projects-for-Electric-Mobility_Final.pdf">build an electric mobility ecosystem</a> for sustainable growth.China provides a good example. Its economic development formula starts with local experimentation of reform initiatives, which then can be replicated at the national level.Back in 1998, China’s first phase of EV development actually happened on a small scale across 12 major cities.For the next 10 years, the focus was given to battery production and setting up of necessary infrastructure which then got integrated into the national plan. Subsequently, after 2008, <a href="https://www.researchgate.net/publication/321869464_Electric_mobility_and_the_quest_for_automobile_industry_upgrading_in_China">conventional fossil consuming motorcycles were banned</a> across 16 major cities, and government promoted preferential treatment and subsidies including purchase tax waiver, trade barrier removal and infrastructure subsidy that expanded pilot initiative from 12 to 88 major cities.Since then, <a href="https://thediplomat.com/2020/05/can-chinas-electric-car-industry-weather-the-covid-19-storm/">450 new EV manufacturers</a> have been registered in China, including giant  oligopolies like BYD which have taken the global lead in electric vehicles. For the past three decades, EV sales have seen an increasing trend in China and they are projected to reach <a href="https://www.chinadialogue.net/article/show/single/en/11405-Can-China-electrify-all-new-passenger-cars-by-2-3-">price parity with petrol</a> and diesel by 2030.The <a href="https://about.bnef.com/blog/battery-pack-prices-fall-as-market-ramps-up-with-market-average-at-156-kwh-in-2019/">87% drop</a> in battery prices worldwide between 2010 to 2019 will also reduce the price of electric vehicles and make them more competitive vis-à-vis fossil cars.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac0a9c7e80680e077f0fjpeg.jpg" alt="" width="1086" height="672">For Nepal, this means electric vehicles will gradually replace petrol and diesel vehicles whether we like it or not. It is better to stay ahead of the curve and actively promote battery-powered cars now so that Nepal gets an early-bird advantage from reduced imports, improved air quality and better public health.As the Saudi Arabian Oil Minister <a href="https://www.economist.com/leaders/2003/10/23/the-end-of-the-oil-age">Seikh Zaki Yamani once said: </a>‘The stone age did not end for the lack of stones, and the oil age will end long before the world runs out of oil.’ Despite the global importance of alternative energy, Finance Minister Khatiwada’s  argument that an increase in imports of electric vehicles would drain the economy does not hold much water. Being a one-time import, EVs replace up-front cost of petrol cars, but reduce the long-term running cost by cutting the use of <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/">imported fuel.</a>Similarly, the argument that only high-end vehicles were imported in large numbers fails to take into account that cheaper Indian and Chinese electric cars and e-scooters like <a href="https://www.nepalitimes.com/banner/electri-city-cars/">Niu and Terra Eco</a> had begun to replace petrol-powered scooters. Instead of raising taxes, Khatiwada should have should have been given incentives for <a href="https://english.khabarhub.com/2020/18/105016/#.Xurj2Xw2GrQ.twitter">entry-level or mid-range EVs</a> and electric buses which cater to local needs, reduce other costs and promotes sustainability.Germany subsidised solar power and China subsidised electric vehicles more because they made economic sense, than just because of their ecological benefits. Nepal should also embrace the benefits of electrifying the transportation sector for economic and health reasons, rather than try to convince Nepalis to reduce the country’s carbon footprint to save the planet.Raunab Singh Khatri is a graduate student in economics at the Yenching Academy of Peking University

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Why Nepal needs to restore EV tax subsidy

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