<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a369c9c7e80680e04831ajpeg.jpg" alt="" width="1400" height="933"/><figcaption>RENEWABLE TRANSPORT: Symbolic gestures like President Bidya Devi Bhandari using an electric limousine, and more practical tax breaks for EVs have won Nepal international praise for a proactive energy policy. However, reforms are still needed to encourage electric public transport. Pic: THE PRESIDENT’S OFFICE</figcaption></figure>Residents of Kathmandu by now know that they breathe some of the <a href="http://archive.nepalitimes.com/page/every-breath-you-take-air-pollution" target="_blank" rel="noopener">dirtiest air in the world</a>. But unlike elsewhere, that awareness has not created the public opinion pressure to <a href="https://www.nepalitimes.com/here-now/open-air/" target="_blank" rel="noopener">force politicians to act</a>.Up to 35,000 Nepalis lose their lives annually due to diseases caused by air pollution. One in every 10 people in Kathmandu suffers from chronic lung diseases like COPD, bronchitis and emphysema. The average life expectancy of Nepalis <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/air-pollution-decreases-life-span,3999" target="_blank" rel="noopener">is reduced</a> by over two and one-half years because of air pollution.“We have seen that electric public transportation <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/public-transport-is-equal-to-public-health,844" target="_blank" rel="noopener">can improve public health by reducing pollution</a>,” says Sajha Yatayat Executive Director Bhushan Tuladhar. “Recent advances in electric transport provide the solution. What is sorely lacking in Nepal is political will, long-term commitment and strategic planning for electric mobility.”Read also: <a href="https://www.nepalitimes.com/?p=25485&amp;preview=true" target="_blank" rel="noopener">Life in the time of tornados</a>, Ajaya DixitIndeed, Nepal’s policy makers no longer have an excuse to do nothing about air pollution: they can follow the example of China and India and announce a national campaign to switch to <a href="https://www.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener">electric public transport</a>.India is rolling out 7,000 electric buses this year. The Delhi Metro is now powered by solar energy and plans to go fully solar by 2021.All 16,000 public buses in Shenzhen are electric. China has replaced all its petrol two-wheelers with electric motorcycles and scooters.Global demand for electric vehicles is rising rapidly, and manufacturers are having a hard time meeting demand, mainly because of the shortage of lithium ion batteries. The sale of electric vehicles overtook fossil-fuel cars in Norway last month.Read also:<a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">Electri-City Cars</a>, Sikuma Rai<a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">20% electric by 2020</a>, Om Astha RaiHere in Nepal, <a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">electric cars</a> now make up 10% all of all new sales. The first 40 Hyundai Kona EV sold out as soon as they arrived, and the next batch of 40 are already booked. In fact, Hyundai launched Kona in Nepal before it did so in Australia and the US. The Korean car-maker listed Nepal as a top priority market in the Asia- Pacific because of tax breaks for electric vehicles here.“We were able to convince the manufacturers that Nepal was ready to go electric because of our hydropower potential and the tax difference between electric and non-electric vehicles that showed a strong government commitment,” explained Nirakar Shrestha of Laxmi InterContinental, which represents Hyundai in Nepal.While the retail price of petrol and diesel reaches up to 261% above the cost price, electric vehicles carry just a 10% tax on the purchase price.  Electric cars are exempt from road tax, which can be Rs30-50,000 per year for fossil-fuel cars. Nepal is the only country in the world with such a huge relative tax difference.Read also: <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener">From a fossil past to an electric future</a>, Om Astha Rai<a href="https://www.nepalitimes.com/here-now/cleaner-air-with-greener-buses/" target="_blank" rel="noopener">Cleaner air with greener buses</a>, Bhushan Tuladhar<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a369f9c7e80680e04831bjpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>However, there are still challenges to overcome before electric vehicles gain greater public acceptance, including the lack of charging stations, undependable electricity supply, and inadequate parking lots. A fast-charge electric station costs a minimum of $30,000 and can charge only 25 vehicles a day. Establishing one requires a government subsidy as well as a regulator to permit the charging of different EV models.Kathmandu Valley alone has <a href="https://www.nepalitimes.com/banner/poisoning-the-air-we-breathe/" target="_blank" rel="noopener">750,000 motorcycles</a>, which are a major source of toxic gases like carbon monoxide and ozone. Introducing tax incentives for bikes and scooters similar to those for private cars could be a pivotal move. Also, at the moment there is no registration policy on electric two-wheelers, discouraging buyers.In October last year, Prime Minister KP Oli unveiled an <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">electric mobility action plan</a>, proposed to transform at least 20% of the fleet of public vehicles into battery-operated ones by 2020. Amidst much fanfare he inaugurated the first five Chinese, BYD electric buses inducted by Sajha Yatayat. President Bidya Devi Bhandari herself has a BYD electric limousine.Last year, <a href="https://www.nepalitimes.com/here-now/mayoral-airs/" target="_blank" rel="noopener">Kathmandu Valley’s 18 mayors gathered for a workshop</a> organised by ICIMOD to discuss an air pollution reduction strategy. Since then, beyond lip service little has been done to establish electric public transport and make emission tests for fossil vehicles more effective.Local and provincial governments have shown an interest in providing financial support to develop electric public transport, but the plans are sketchy and ad hoc. A case in point is the confusing and conflicting proposals for electric bus rapid transit, monorail and light rail transit along the Ring Road. The proposals are restricted to speeches and slogans, but nothing concrete has been done.One reason is the high investment cost of electric public transport, which requires government to step in with subsidies.Over the years, revenue from the Petroleum Tax has grown to a whopping Rs5.2 billion. Some of this could be invested in a clean-energy electric transportation strategy.The Seoul-based Global Green Growth Institute (<a href="http://gggi.org/" target="_blank" rel="noopener">GGGI</a>) has been helping the central government with just such a strategy on electric mobility, and to find potential investors. General Director Frank Rijsberman was in Kathmandu last week to sign an agreement to implement e-mobility in Nepal. GGGI is keen to help Nepal with its first purchase of 300 electric buses for cities across Nepal.  (See interview below)“Operating an electric transport fleet is more complex, requires higher initial investment and more infrastructure than traditional buses, but in the longer-term, renewable energy sources are not only ecologically but also economically viable,” said Rijsberman. “We believe that it is not only the right thing to do but also the best way of growing in the 21st century. In the coming years we hope to see a breakthrough and electric buses on the streets of Kathmandu.”Electric vehicles are now a necessity, not just an environmental statement. Neighbouring India and China have committed to manufacturing only electric automobiles by the year 2030. This means Nepal will be forced to go electric since most vehicle imports are from those two countries.Said Bhushan Tuladhar of Sajha Yatayat: “Like it or not, Nepal will have to go all electric in about a decade. So we may as well start planning for it. That way, the transition will be much smoother, efficient and advantageous.”<h2>Investing in renewables</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a36a29c7e80680e04831cjpeg.jpg" alt="" width="1400" height="799"><figcaption> </figcaption></figure>Frank Rijsberman of the Korea-based <a href="http://gggi.org/" target="_blank" rel="noopener">Global Green Growth Institute</a> was recently in town to sign an agreement with the government and Sajha Yatayat on electric mobility. Nepali Times asked him about the future of electric public transport globally and in Nepal.Nepali Times: Why is your Global Green Growth Institute so involved in electric mobility around the world?Frank Rijsberman: We are a young intergovernmental organisation set up in 2012 with 32 member countries and 20 more in the process of becoming members, like Nepal. We help governments plan green growth, a model of economic development that is both more environmentally sustainable and socially inclusive. In Nepal, we helped the government develop a national electric mobility strategy, and we have also helped members mobilise $1 billion in climate finance.We are also working to make cities greener by managing water, sanitation and solid waste. I met with Nepal’s minister of forests and environment and he asked us if we could start working on forests as our next priority. We have done similar work in Indonesia and Myanmar, and that is likely to be our next priority here.Do you see Asian countries moving towards renewable energy?It is challenging to switch from big investments in coal and nuclear energy, because all those investments have become stranded assets. China and India are making enormous progress in renewable energy. Many other Asian countries are a bit behind — Vietnam is still planning to build 25 new coal fire power plants. We are working with governments to introduce large-scale renewable energy sources. The private sector will invest only if the government has the right policy, so we work with governments for that.Read also: <a href="https://www.nepalitimes.com/here-now/from-playing-victim-to-proactive-leadership-on-climate/" target="_blank" rel="noopener">From playing victim to proactive leadership on climate</a>How can Nepal mitigate on carbon, while adapting to climate change?Adaptation is still very much the number one priority for Nepal but it must grow to middle-income status by 2030, without increasing emissions, by investing in renewable energy. This is now the cheapest form of energy and decentralised solar energy is a much easier way to reach remote communities that were very poorly served by a centralised grid.So I would call it adaptation with mitigation co-benefits. It may well be possible to trade those emissions with countries that should reduce more but cannot on their own. You can have mitigation measures too, but the first priority for countries like Nepal that rely on agriculture is to make sure that society is no longer vulnerable and is more resilient to climate change.Also, many governments still want growth. But the quality of growth really matters; it should be environmentally sustainable. It used to be the right thing to do, but being sustainable is also commercially attractive.What progress are other Asian countries making to become low-carbon economies?China has become a real leader in electric transport. Shenzhen is the first city in the world with an all-electric fleet of buses. Beijing has also taken big steps in curbing air pollution. India has also made considerable progress in renewable energy. The next big thing will be energy efficiency in buildings.What are the prospects for electric public transport in Nepal?We have done electric bus projects in a number of countries and while it is more expensive initially, and also for infrastructure like charging stations and batteries, its operational cost is much cheaper. We are helping the Nepal Government find interested investors, and hope to see a breakthrough in coming years with electric buses on the streets of Kathmandu.

Sonia Awale

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Nepal’s electric transport future is here

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933419c7e80680e03df86jpeg.jpg" alt="" width="1400" height="1008"/><figcaption>PIPE DREAM: Part of a 69km petroleum pipeline connecting Amlekhganj in Nepal to an oil refinery in India, under construction in Patlaiya. The pipline is proof to many that the Nepal government has no intention of switching to renewable energy any time soon. Pic: Jiyalal sah</figcaption></figure>President Bidya Devi Bhandari will be leading the Nepali delegation at the Climate Summit (CoP24) in Poland next month, and environmental activists are lobbying with the Nepal government to get her to make a far-reaching policy statement on renewable energy.They say Nepal’s commitment of turning <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/">20% public vehicles into battery-operated ones by 2020</a> is not ambitious enough, and the President can announce in Katowice more meaningful steps towards electric mobility.In a symbolic move to end Nepal’s fossil fuel addiction, President Bhandari is already riding an electric  but activists say that is not enough. She needs to create political momentum by getting her government to announce a cut-off date for Nepal to turn all public vehicles into electric ones.Manjeet Dhakal, adviser to the Least Developed Countries (LDC) support group at the UN Framework Convention on <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/">Climate Change</a> (UNFCCC), says: “Nepal can move towards electric mobility if its head of the state announces a goal to this effect at the international climate change conference in Poland.”Read also: <a href="https://www.nepalitimes.com/banner/electri-city-cars/">Electri-City Cars</a>, Sikuma Rai<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933449c7e80680e03df87jpeg.jpg" alt="" width="327" height="327"><iframe id="datawrapper-chart-CZIOW" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/CZIOW/4/" height="472" frameborder="0" scrolling="no"></iframe><iframe id="datawrapper-chart-2DG41" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/2DG41/3/" height="472" frameborder="0" scrolling="no"></iframe>Last week, Prime Minister KP Oli flagged off Nepal’s first five electric buses in Kathmandu, and unveiled the country’s first National Plan of Action for Electric Mobility.Bhushan Tuladhar of Sajha Yatayat, the public transportation company that got the first lot of electric buses on loan from the Lumbini Development Trust for Kathmandu routes, says: “Public transport is directly related to public health, and it is also linked to Nepal’s economic well-being. This can be the beginning of a new era in clean transportation.”The National Plan of Action envisages a separate unit at the Ministry of Environment for the promotion of electric transport, but many are skeptical about it, given Nepal’s poor track record in implementing commitments.A recent <a href="http://www.cansouthasia.net/wp-content/uploads/N-CANSA-State-of-Climate-Action-in-Nepal-FINAL-7-October-2018.pdf?fbclid=IwAR0IOLO0TREa5UjbdMLsBnUyTRyeaRfP-iDMW-bI2-tFyddYbj5KstNKOCI">report by Nepal Climate Action Network South Asia (N-CANSA)</a> says Nepal is actually moving in a reverse, non-renewable direction despite many past policies, strategies and international obligations to lower its dependency on fossil fuels – the biggest source of CO2 emissions.Read also: <a href="https://www.nepalitimes.com/editorial/climate-climax/">Climate Climax</a>, Editorial<a href="https://www.nepalitimes.com/opinion/decarbonise-now/">Decarbonise now</a>, Ajaya DixitNepal’s Climate Change Policy 2011 and the Environment-friendly Vehicle and Transport Policy 2014 aimed to reduce greenhouse gas emissions by steadily reducing imports of petrol, diesel and LPG. In 2016, Nepal passed its National Determined Contributions (NDC) aiming to turn 20% public vehicles into battery-operated ones.But since then, the country’s addiction to fossil fuel has only deepened. All the policies and strategies did not make a dent on imports. In 1993/94, the year Nepal ratified the UNFCC, Nepal’s total import of petroleum products was worth only Rs5 billion. By 2008, it had grown to nearly Rs40 billion, and in the past ten years it has more than tripled to an annual Rs150 billion. (See graphs)The reason is the explosive growth in the number of <a href="http://archive.nepalitimes.com/blogs/kundadixit/2018/01/24/electric-cars-shock-fossil-industry/">fos</a>sil fuel vehicles from only 84,000 ten years ago to 438,000 today. Most of the increase was during the tenure of Maoist finance minister Baburam Bhatttarai in 2008-9. Part of the reason for the growth in petroleum imports was also the corruption-driven artificial shortage of electricity which saw a proliferation of diesel generators. Import of diesel grew five times in the past ten years.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933469c7e80680e03df88jpeg.jpg" alt="" width="640" height="848"><iframe id="datawrapper-chart-hKFc3" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/hKFc3/4/" height="390" frameborder="0" scrolling="no"></iframe>For every Rs100 earned from its exports, Nepal spends Rs169 just to import petroleum from India. Nepal is now also importing half of its electricity need from coal-fired thermal plants in India. Although it went down slightly with monsoon supply and new hydro powerplants coming on stream, Nepal imported 424MW of electricity from India this summer, which was about 35% of peak demand.Says Durga Upadhyay, a co-author of the CANSA report: “If it was not for remittances, our foreign currency earnings from exports would not even pay for petroleum imports.”Read also: <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">The cost of light</a>, Om Astha RaiDespite policies and symbolic moves to reduce petroleum imports, Nepal’s consumption is growing as the road network spreads and vehicle imports increase. The government’s plans to build a 36km cross-border petroleum pipeline from India and storage stockpiles in each Province indicates that there is no end in sight to the country’s fossil fuel addiction.Manjeet Dhakal says these moves indicate that Nepal’s policymakers believe the cost of ending the dependence on petroleum is too high. “But that is an outdated concept,” he says, “it is now possible to drive a country’s economy without using fossil fuels. PM Oli should learn from Costa Rica, a country he visited recently.”<iframe id="datawrapper-chart-ny5IE" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/ny5IE/5/" height="400" frameborder="0" scrolling="no"></iframe><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933489c7e80680e03df89jpeg.jpg" alt="" width="351" height="555">Some argue that Nepal’s economy is so petroleum dependent that it cannot switch suddenly to renewable without assistance for the conversion of cars, and to add new hydropower plants. Nepal’s per capita <a href="https://archive.nepalitimes.com/regular-columns/half-full/A-carbon-neutral-Nepal-is-possible-clean-Nepal,1064">carbon</a> footprint is negligible, they add, so whether or not Nepal goes for electric mobility is not going to save the planet.However, former energy minister Dipak Gyawali says: “The volume of carbon emitted by Nepal might be small, but the rate at which we are increasing it is even higher than the industrialised West.”Gyawali says Nepal should immediately declare a peak emission year, pass a policy to gradually replace all government vehicles with electric ones and impose a tax on fuel that can be used to subsidise electric vehicles.Nepal needs to do this more importantly to reduce its balance of payment deficit, save the country from bankruptcy, and reduce its political dependence on India, than to save the world from <a href="https://archive.nepalitimes.com/article/nation/melting-mountains-shake,3073">global warming</a>.

From a fossil past to an electric future

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

The COP30 climate summit in Brazil ended this week <a href="https://nepalitimes.com/opinion/cop30-to-cop31">without tangible commitment</a> from countries to reduce fossil fuel emissions. Its impact will be felt halfway around the planet here in Mustang which is already seeing weather extremes.&nbsp; Geographically, Mustang is on the Tibetan Plateau, north of the main Himalayan chain. It is in the rainshadow, and a high altitude desert. Winter snow has failed for eight of the past ten years, unseasonal blizzards, and frequent glacial collapse leading to floods. The Kali Gandaki Corridor follows one of the deepest gorges in the world between Annapurna and Dhaulagiri, the world’s seventh and tenth highest peaks. Lush pine forests cover the southern flanks of these mountains, but within a few kilometers the vegetation undergoes a dramatic change to a landscape of red, brown and grey cliffs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f.jpg" data-media-id="editor_1" data-image-id="20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It gets more arid the more north you go. Snow and rain in Upper Mustang used to fall mostly in winter, but now there are cloudbursts and blizzards at other times of the year.&nbsp; In the ancient walled city of Lo Manthang, elderly men have gathered at a local tea shop to drink the salted butter tea. Some sip home-made liquor infused with medicinal herbs.&nbsp; The sun has set, the temperature plummets, and the wind howls outside. Everyone agrees it does not snow like it used to any more. Read also: <a href="https://nepalitimes.com/here-now/comings-and-goings-in-mustang">Comings and goings in Mustang</a>, Shrijan Pandey  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161.jpg" data-media-id="editor_3" data-image-id="20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The flat mud roofs are leaking because rain is now falling where there used to be snow.</figcaption> </figure>  “The weather has changed drastically over the years,” says Lopsang Tsomfel Bista, Chair of the Lo Dekhar Municipality. “It doesn’t snow in winter, and it falls when it is not supposed to.”&nbsp; Lack of snow means that in spring, the pastures where nomadic herders graze their yaks and goats do not have enough grass. Previously, winter snow on the meadows would seep slowly into the soil with the spring thaw, bringing out fresh grass shoots. &nbsp; In recent years, even if there is winter precipitation, it falls as rain. The soil is not able to soak in rain as efficiently, and torrential downpours increase the risk of soil erosion and floods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1.jpg" data-media-id="editor_4" data-image-id="20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  “There used to be up to 1,500 mountain goats in every village, but now they have stopped keeping livestock,” says Bista. This is due to lack of grass and new lowland diseases moving up the mountains. Mustang has lost 28% of its population between the census in 2011 and 2021, and outmigration also means there are fewer people left to carry on a pastoral lifestyle.&nbsp; “Herders have asked for vet services in their communities because there are new insect-borne diseases,” says Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation. Read also: <a href="https://nepalitimes.com/opinion/winds-of-change-sweep-mustang">Winds of change sweep Mustang</a>, Jagannath Adhikari  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26.jpg" data-media-id="editor_6" data-image-id="20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The mud walls of monasteries and homes are crumbling because of unseasonal rainfall. </figcaption> </figure>  Mustang is flanked to the east and west by mountains that rise up to 6,000m, and glaciers on their slopes are melting fast, turning into lakes. With the rising temperature, the risk of Glacier Lakes Outburst Floods (GLOFs) has also risen.&nbsp; At the rate global average temperatures are rising, scientists say that the Himalaya will lose up to two-thirds of the remaining ice caps. When glaciers melt, it not just raises the risk from GLOFs but also affects water supply downstream.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f.jpg" data-media-id="editor_7" data-image-id="2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f" data-rendition-name="original" width="1022" height="767" loading="lazy" alt="Mustang map NT"> </figure>  FLOODS Ringzin Sangbo Gurung in Chumjung village recalls the devastation caused by a GLOF on 8 July this year that swept away a newly inaugurated bridge. The floodplain is now strewn with boulders and sand brought down by the flood which caused damage worth Rs28 million. The flood also damaged the irrigation canals that feed riverside farms where locals grew potato, buckwheat, millet and spinach. Nyima Wangmo Gurung runs a homestay in Nyamdok village, and says: “We don’t have water when we need it. And there is too much when we don’t need it.”&nbsp; Read Also: <a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">Mustang forced to adapt to climate c</a><a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">risis</a>, Ronan Wallace and Yungdrung Tsewang Gurung  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2.jpg" data-media-id="editor_10" data-image-id="20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  With warming temperatures, farmers in Mustang are growing lowland vegetables which was not possible before in plastic greenhouses. The farms depended on snowmelt in spring to irrigate their fields, but there is less snow to melt in past years. “The last heavy snowfall in winter was about eight years ago, since then we have got little or no snow,” says Tashi Norbu Gurung, Chair of Lo Manthang Rural Municipality. “This affects farmers during the April planting season.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b.jpg" data-media-id="editor_11" data-image-id="20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b" data-rendition-name="original" width="1000" height="1500" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It is not just lack of snowfall that is a problem. Springs have gone dry, and some villages like Dhey have been forced to relocate because life became &nbsp;impossible without water.&nbsp; Villagers of Samjung also <a href="https://nepalitimes.com/news/climate-migration-is-already-happening">migrated</a> to Namashung, near a river when water sources dried up. But now the new settlements are threatened by GLOFs. Karma Gurung, who runs a lodge in Choser, remembers the big flood of 35 years ago which swept away farms and covered them with debris. There have been more frequent, but destructive floods since then in Kagbeni, Lubra and other valleys. Read also: <a href="https://www.nepalitimes.com/banner/mixed-blessings-in-mustang">Mixed blessings in Mustang</a>, Mukesh Pokhrel  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd.jpg" data-media-id="editor_14" data-image-id="20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  MUD WALLS Because snowfall has been replaced by rain, Mustang’s traditional mud-wall architecture is now in <a href="https://nepalitimes.com/here-now/leaky-roofs-on-the-roof-of-the-world">danger of collapsing</a>. The homes here are closely packed, have flat roofs stacked with juniper branches for firewood. With rain in place of snow, the roofs now leak.&nbsp; Women in Thinkar village say their walls are falling apart. Some homes have collapsed, and families forced to move out. Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation says locals need plastic sheets, cement walls and corrugated roofs to cope with the rain.&nbsp; But this would mean that Mustang’s villages would lose their traditional architecture style.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d.jpg" data-media-id="editor_16" data-image-id="20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The ancient 1.5m thick mud walls around Lo Manthang built 600 years ago, the king’s palace, and monasteries are also at risk. “Changes in precipitation patterns, altering the intensity, frequency, and timing of rainfall and snowfall, have damaged traditional and cultural infrastructure, particularly mud-built private and public buildings as well as religious and heritage sites,” explains Bhawani Pandey at the Lo Gyalpo Jigme Foundation. “With the rain, and because the monuments and stupas are made from mud, they have eroded. There is leakage, and the monuments are in a dilapidated condition.” Read also: <a href="https://www.nepalitimes.com/banner/climate-smarter-himalayan-infrastructure/" target="_blank">Climate-smarter Himalayan infrastructure</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6.jpg" data-media-id="editor_18" data-image-id="20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The Lo Manthang Rural Municipality along with Lo Gyalpo Jigme Foundation, are working on a Local Adaptation Plan of Action and the Disaster Preparedness and Response Plan, which the Nepal government has made mandatory for every municipality. “We took a bottom-up approach and collected data from each village, they know best the impact of climate change and what their needs are,” says Yangchen Gurung. To address the hazards of climate change, local communities and municipalities are adapting through their own resources, without waiting for outside help to improve water conservation, control soil erosion and protect from flood.&nbsp; Says Pandey, “We are returning to conserving traditional drought-resistant crop varieties, organic pest and disease control, cultivating high-value crops and fruits, and practicing sustainable pasture management through rotational grazing. We have also developed new building codes for homes that incorporate water-resistant coating for mud roofs and walls.” &nbsp; Additional Reporting by Tashi Wangyal. &nbsp;

Too little snow, too much rain

Groundwater is like a phone battery, it needs to be regularly recharged. As springs go dry across the Himalayan foothills due to over-extraction and climate change, communities in eastern Nepal are reviving traditional knowledge to replenish aquifers. The town of Dhankuta is located along the spine of a ridge and is struggling with its water supply. Unregulated pumping is one reason, and weather extremes due to climate breakdown is the other. Since water is so important for life, necessity has become the mother of invention here. More accurately, it is the mother of re-invention — since recharging ground water is a traditional practice that has been discontinued. Communities are practicing sustainable water management again by reviving recharge ponds that had fallen into disuse as well as rainwater recycling. Some of these indigenous practices have eroded over time with outmigration and modernisation. The nearby village of Khambela is dominated by the indigenous Aathpahariya Rai community and is building on its ancestral practice of rainwater harvesting with new technology developed by the group, SmartPaani.&nbsp; Households collect rainwater during four monsoon months in tanks of up to 10,000 litres for household use and irrigating &nbsp;vegetable patches in the dry season.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251124031112_b48e18e9c85ed460210d475041dce6ba5917ab31db0a16aca2c8e0f0356c9038.jpg" data-media-id="editor_0" data-image-id="20251124031112_b48e18e9c85ed460210d475041dce6ba5917ab31db0a16aca2c8e0f0356c9038" data-rendition-name="original" width="1125" height="1500" loading="lazy" alt="Storing rain inside mountains NT"> </figure>  “The rainwater harvesting installation here uses a rapid sand filter system that allows rainwater to move rapidly through the builtin filtration unit,” says Jyotsna Lama from Kathmandu-based SmartPaani. “The clean water is stored in tanks for future use.” The initiative is supported by the International Centre for Integrated Mountain Development (ICIMOD) and local municipalities. Local households contribute Rs50 a month for maintenance. “During the rainy season there is enough water in the wells and springs,” says a local farmer Sangita Rai. “But storing monsoon rain is enough to last the whole dry season.” Dhankuta town itself has a recharge pond at Sukepokhari, which itself means ‘dry pond’. &nbsp;The 24m diameter pond can hold up to 200,000 litres and lets it seep slowly to recharge the aquifer. One in four springs in &nbsp;Dhankuta have dried up, and Sukepokhari is helping revive them.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251124031112_0db2a186eec5194d37492066e6d0b939569254e8feca6c6dd757d28147267b2f.jpg" data-media-id="editor_1" data-image-id="20251124031112_0db2a186eec5194d37492066e6d0b939569254e8feca6c6dd757d28147267b2f" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Storing rain inside mountains NT"> <figcaption>Sukepokhari</figcaption> </figure>  The mountains around Dhankuta act like a sponge, absorbing water in the dry season and letting it out through springs. But water started becoming scarce when the town’s expanding population started pumping up water. Plastic waste and other pollutants contaminated the remaining water. Sukepokhari’s caretaker is Krishna Kumar Thakuri, fondly known as ‘Pani Ba’ by locals who regard him as a passionate father figure. He regularly monitors rainfall and the water level in the pond to gauge how much of it is seeping into the ground to recharge the groundwater.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112403118_b412598c4473f2bb33900bab7e2084f584e7e88c1a92f6b9c09e940e23e4ce29.jpg" data-media-id="editor_2" data-image-id="2025112403118_b412598c4473f2bb33900bab7e2084f584e7e88c1a92f6b9c09e940e23e4ce29" data-rendition-name="original" width="1000" height="1475" loading="lazy" alt="Storing rain inside mountains NT"> <figcaption>Caretaker of Sukepokhari Krishna Kumar Thakuri fondly known as Pani Ba.</figcaption> </figure>  “We harvest rain that falls in the surrounding slopes,” explains Thakuri. “But a lot of leaves, vegetation and sediment also flows into the pond and has to be desilted every year.” The pond provides drinking water to around 150-200 households and enables irrigation to 10 households in surrounding areas. Water from the pond further flows and supports springs down the mountains.&nbsp; Off the walking trail is Dale Pokhari, another recharge pond in the scenic village of Dhojedanda. After the pond was revived two springs sprang back into life again, supplying water to six households. “There used to be multiple springs and water sources, and biodiversity was diverse, but as people started to dig up wells and drag water sources to their homes via plastic pipes, the water sources started drying up,” explains Phurba Sherpa. But now there is more water flowing out of springs.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251124031112_dd71cdc337f6275b179fdab9ded358a1dcdb53c5e286d493aa2182e3f35ce32e.jpg" data-media-id="editor_3" data-image-id="20251124031112_dd71cdc337f6275b179fdab9ded358a1dcdb53c5e286d493aa2182e3f35ce32e" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Storing rain inside mountains NT"> <figcaption>Dalepokhari</figcaption> </figure>  WATER IS LIFE Syaule-Sipting Homestay in Dhankuta has been using water sustainably after facing shortages. It has now built a bio-sand filtration system in the water tanks, so that water is safe for use by four households One of the homestays also uses a rainwater harvesting system. While the bio-sand and rainwater harvesting are used for cooking, washing and other purposes, table top filtration systems are used for drinking. Adequate safe drinking water is also helpful to revive the area’s eco-tourism potential. Safe drinking water is important so visitors are not turned off, says Anu K Lama of ICIMOD. She adds, “Health and hygiene are important for everyone. But foreigners do not have the strong immune system that locals have. Clean and adequate supply is necessary especially if we are targetting foreign guests.”

Storing rain inside mountains

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;

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