The 14th instalment of the European Union Film Festival brings to Nepali audiences European storytellers, emerging Nepali filmmakers and their work in celebration of the shared language of cinema. Films will be screened 14-16 November in Kathmandu, followed by Pokhara from 21-23 November. This year’s EUFF features 25 films, including 10 European features, six BAFTA-nominated shorts, and nine Nepali short films that explore universal themes of identity and belonging. “We didn’t set out with a defined ‘theme’, but as the films started coming together, a pattern emerged, stories of belonging, migration, resistance, and quiet transformations,” says Prasuna Dongol, program director and curator of the festival. “It’s interesting to see those reflections across continents, showing that even though we’re worlds apart, we’re asking the same questions,” Dongol adds. The festival is organised by the EU Delegation to Nepal, in collaboration with embassies and cultural institutions representing EU members in Kathmandu and Delhi, as well as the British Council and UNESCO. The EU selection will showcase films from Portugal, Austria, Finland, the Netherlands, Ireland, the UK, Lithuania, France, Italy, Romania, Hungary, Poland, and Switzerland. The films by young Nepalis, rooted in everyday small towns, friendship, or growing up in a country in transition, mirror the motifs of the selected films that tell stories of life across Europe. Dongol adds: “Our goal was to showcase how young Nepali filmmakers are engaging with ideas of identity, place, and change in ways that feel both personal and globally resonant.” In the lead-up to the festival, conversations were held about Nepal’s evolving film industry, and how storytellers navigate filmmaking as both art and business. Organisers plan to introduce interactive side events including networking spaces and informal markets. A four day workshop brought together 10 emerging Nepali filmmakers to explore how to take their films from idea to market. Participants discussed why film festivals matter, how funding works, and how to build sustainable collaborations without compromising on creativity. Meanwhile, at the British Council and UNESCO’s ‘What Next for the Film Industry?’ roundtable on 12 November, filmmakers, policymakers, and researchers discussed the findings of the recent UNESCO Baseline Assessment of the Cultural and Creative Industries (CCI) of the Valley. “Film festivals like this are not just about watching films; they’re about expanding perspective and networking,” says Dongol. “If someone discovers a new filmmaker they love or feels inspired to tell their own story differently, that’s a success for us.” <h2>WATCHLIST</h2> <h2>Happy</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_bea2f7f1aa998adb05b38d6912fc968204ed592d9bb375edbe163ef0223f1d30.png" data-media-id="editor_0" data-image-id="2025111312118_bea2f7f1aa998adb05b38d6912fc968204ed592d9bb375edbe163ef0223f1d30" data-rendition-name="original" width="1222" height="605" loading="lazy" alt="EUFF 2025 NT"></figure>  An undocumented Indian immigrant in Austria strives for a happy life for his daughter amidst the threat of deportation, revealing the shared quest for happiness in those who seem to have it all. 110 mins | Austria Director: Sandeep Kumar <h2>Jeʹvida</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_d19893069ba768408600bf14072c6858f963827be0feb3b2bcfdd60b2528bbf1.png" data-media-id="editor_1" data-image-id="2025111312118_d19893069ba768408600bf14072c6858f963827be0feb3b2bcfdd60b2528bbf1" data-rendition-name="original" width="1078" height="613" loading="lazy" alt="EUFF 2025 NT"></figure>  Sanna and her aunt Iida, who have never met before, drive to Lapland to empty a house they’ve both inherited. The house invokes painful memories in Iida, and Sanna learns of her withdrawn and distrusting aunt’s ordeal during the forced assimilation into Finnish society. 104 mins | Finland Katja Gauriloff <h2>Three Kilometres to the End of the World</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_2a737dd7092e827965065f54eb6e96db873c5c77597f65392f7c9d616ba6a585.png" data-media-id="editor_2" data-image-id="2025111312118_2a737dd7092e827965065f54eb6e96db873c5c77597f65392f7c9d616ba6a585" data-rendition-name="original" width="1078" height="617" loading="lazy" alt="EUFF 2025 NT"></figure>  Adi is spending the summer in his home village in the Danube Delta when he is brutally attacked one night. In the aftermath, his parents no longer look at him as they did, and the seeming tranquility of the village starts to crack. 104 mins | Romania Director: Emanuel Parvu <h2>The Last Expedition</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_c9b46e481a46734bc332d30da21465e1d50807f39b54ebe1525a7f3889df855d.jpg" data-media-id="editor_3" data-image-id="2025111312118_c9b46e481a46734bc332d30da21465e1d50807f39b54ebe1525a7f3889df855d" data-rendition-name="original" width="1500" height="844" loading="lazy" alt="EUFF 2025 NT"></figure>  Wanda Rutkiewicz, the most famous Polish mountaineer, went missing on 13 May 1992 on her way to Kangchenjunga. As past events are confronted with theories of Wanda’s disappearance, questions emerge– is it possible that she is still alive? 86 mins | Poland, Switzerland Director: Eliza Kubarska <h2>Wander to Wonder</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_bd6a0b3494565fed5f86707572064d8b6dd70532f7e352d9b871f3824db3f083.jpg" data-media-id="editor_4" data-image-id="2025111312118_bd6a0b3494565fed5f86707572064d8b6dd70532f7e352d9b871f3824db3f083" data-rendition-name="original" width="3840" height="2160" loading="lazy" alt="EUFF 2025 NT"></figure>  Three miniature actors who starred in a children’s tv show are left alone in the studio after the show’s creator dies, leading them to continue making increasingly strange episodes for their fans. 14 mins | France, Belgium, United Kingdom and the Netherlands Director: Nina Gantz <h2>Stomach Bug</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_980ed53441602df9c8df913e1f5de9abbf9b537953f8b77df074ed4bb0b52109.jpg" data-media-id="editor_5" data-image-id="2025111312118_980ed53441602df9c8df913e1f5de9abbf9b537953f8b77df074ed4bb0b52109" data-rendition-name="original" width="3240" height="2160" loading="lazy" alt="EUFF 2025 NT"></figure>  The life of a fifty-something Chinese father, whose daughter moves out and who feels invisible in British society, unravels as his loneliness manifests physically. 15 mins | United Kingdom Director: Matty Crawford <h2>The Kathmandu</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_85299c1df8dbff3264720f8b2c01cc0633732f32fd1885c30230111ab23ef2ce.png" data-media-id="editor_6" data-image-id="2025111312118_85299c1df8dbff3264720f8b2c01cc0633732f32fd1885c30230111ab23ef2ce" data-rendition-name="original" width="1440" height="640" loading="lazy" alt="EUFF 2025 NT"></figure>  A young musician’s dream city turns into a nightmare when his reflection comes to life, and begins living his life. 6 min | Nepal Director: Nying Hyolmo <h2>What grows in Thari Maila’s Vegetable Garden?</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_3a46e16703144323a733a2beeadde1322e99abcabb53522fb980e54eac7e50dd.jpg" data-media-id="editor_7" data-image-id="2025111312118_3a46e16703144323a733a2beeadde1322e99abcabb53522fb980e54eac7e50dd" data-rendition-name="original" width="3840" height="2160" loading="lazy" alt="EUFF 2025 NT"></figure>  Thari Maila and wife live off of their thriving vegetable garden, but the lush garden hides secrets beneath its surface, as innocence gives way to quiet unease. 14 min | Nepal Director: Patrika Ghimire <h2>Abyss</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_eb40d3fcd85bcd01552481dc1d478d133cf758a45598bce0f268ecedcbb1b177.jpg" data-media-id="editor_8" data-image-id="2025111312118_eb40d3fcd85bcd01552481dc1d478d133cf758a45598bce0f268ecedcbb1b177" data-rendition-name="original" width="2880" height="2160" loading="lazy" alt="EUFF 2025 NT"></figure>  Richa and Dhiraj, a couple who have just had a newborn, confront the depths of love and pain as Richa struggles with postpartum depression. 13 mins | Nepal Director: Akriti Dhungana <h2>Eternal Kinship</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_638750880715567980ce7654d3b103e202cec2ce6740051927278666d5f4b2f4.png" data-media-id="editor_9" data-image-id="2025111312118_638750880715567980ce7654d3b103e202cec2ce6740051927278666d5f4b2f4" data-rendition-name="original" width="826" height="612" loading="lazy" alt="EUFF 2025 NT"></figure>  A boy’s fear of crossing a river becomes a journey toward courage and self-discovery. 11 mins | Nepal Director: Arvin Rai <h2>SCHEDULE</h2>  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_dad4593c61a147fed1a19e2c1724f3d4edc4dc7267e476b770723d4f40738b05.png" data-media-id="editor_10" data-image-id="2025111312118_dad4593c61a147fed1a19e2c1724f3d4edc4dc7267e476b770723d4f40738b05" data-rendition-name="original" width="1199" height="851" loading="lazy" alt="EUFF 2025 NT"></figure>   <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312118_e29696f8a489f5fedf3d044ae23fd2eb4c0f30acd5094754a67a666d06de07d3.png" data-media-id="editor_11" data-image-id="2025111312118_e29696f8a489f5fedf3d044ae23fd2eb4c0f30acd5094754a67a666d06de07d3" data-rendition-name="original" width="1200" height="852" loading="lazy" alt="EUFF 2025 NT"></figure>  The 14th European Union Film Festival Nepal 14 – 16 November, QFX Chhaya Center, Kathmandu 21 – 23 November, QFX Trade Mall, Pokhara All screenings free

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Cinema’s shared language

South Asians are coming together to celebrate the stories of this region at the biennial film festival, Film Southasia (FSA), which starts on 21 November. It coincides with the COP29 climate summit in Baku, Azerbaijan.&nbsp; This year’s four-day event showcases documentaries from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, and even one from Mongolia, although that country is in Central Asia.&nbsp; This year’s theme is Documentary in Anthropocene, with a lineup of films that explore human interaction with nature, especially in the context of climate breakdown. “The climate crisis has been the major challenge in the Anthropocene era and climate crisis respects no border. With one fourth of the world population in South Asia, we as neighbours should closely look into these issues together,” states FSA director Mitu Varma.&nbsp; While some documentaries specifically explore the impact of the climate crisis on the region’s land and people, other films highlight the interconnectedness between people and time, nature, or other people divided by borders. “Humankind practices and leads life with the concept of othering and acting as if their lives are free from the connection with nature. This year’s lineup will help retrospect the interconnectedness,” adds Varma. “But it is not all doom and gloom, the movies are also hopeful about human-nature symbiosis.”&nbsp; With over 2,000 submissions, FSA selected only 47. The carefully curated lineup will be screened at Yala Maya Kendra over next week. The FSA festival has, for over two decades, been a platform that brings South Asian filmmakers and audiences together.&nbsp; Producers and directors of 27 of the documentaries will be attending the festival and may explore cross-country collaboration on future film projects. Along with the film screenings, a Director Workshop with filmmaker Kabir Khan, and panel discussions about FSA’s slogan and the evolution and success of Nepali documentaries will also be taking place. The panel discussions and film screenings will happen simultaneously, so the attendees will have to plan their schedules accordingly. Two other master classes, and a discussion on financing and editing with industry experts will also take place in collaboration with the British Council’s WOW (Women of the World) festival and audio-visual production company KathaHaru.&nbsp; FSA also organises Travelling Film Southasia tours, in which up to 15 of the selected films are screened around the globe, mostly at universities. Says Pawas Manandhar of FSA: “We want to cultivate a sense of appreciation among the younger people for documentaries in the age of 30-second TikToks.”&nbsp; <h2>In the spotlight</h2> Hello Guyzz!  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071132_f98428bad27e80d73e744b03cdeb665bff145d4d58acb0c0df1691546223cec2.jpg" data-media-id="editor_0" data-image-id="20241119071132_f98428bad27e80d73e744b03cdeb665bff145d4d58acb0c0df1691546223cec2" data-rendition-name="original" width="1920" height="914" loading="lazy" alt="Hello Guyzz NT"> </figure>  One of the student films at FSA, this 24-minute long documentary features Sumita, a social media influencer in a small town in Bengal. Sumita has an alternate identity on TikTok, and straddles identities between a mundane life as a housewife and the desired life of being a successful influencer. She also harbors hopes of maybe fulfilling her long-lost dream of becoming an actor. 21 November, 12:20PM Whispers by the River Shore&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071132_f02e3702cf79cf5de38d8bf7381bf32e0391b7313288f1f5f4011ddcd2b3a9c8.jpg" data-media-id="editor_1" data-image-id="20241119071132_f02e3702cf79cf5de38d8bf7381bf32e0391b7313288f1f5f4011ddcd2b3a9c8" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Whispers by the River Shore NT"> </figure>  River encroachment results in a Bangladeshi family’s fortunes being swept away. This 19-minute long documentary, directed by Samiur Rahman, sheds light on the humans living in encroached land near the river. It is a story all the more relevant to Kathmandu.&nbsp; 21 November, 1:50PM When the Floods Come&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071132_3c9860b2ba62293e712016ba6134ebdf269853410cf56c4d582a4ba023d08375.jpg" data-media-id="editor_2" data-image-id="20241119071132_3c9860b2ba62293e712016ba6134ebdf269853410cf56c4d582a4ba023d08375" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="When the floods come NT"> </figure>  Directed by Pakistani-American Nyal Mueenuddin, this documentary won a BAFTA Award for the portrayal of the intimate stories of people affected by the 2022 flood on the Indus River. Mueenuddin has prioritised human emotion, empathy and compassion. The subject is relatable for a Nepali audience, as climate change makes the region even more vulnerable to extreme weather.&nbsp; 22 November, 10AM Nocturnes&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071128_28f8cac4679824be8709473ed44e84c25adf266095be3717b4ee9cbbb91b0477.jpg" data-media-id="editor_3" data-image-id="20241119071128_28f8cac4679824be8709473ed44e84c25adf266095be3717b4ee9cbbb91b0477" data-rendition-name="original" width="2500" height="1318" loading="lazy" alt="Nocturnes NT"> </figure>  In a remote ecological hot spot on the India-Bhutan border, director duo Anupama Srinivasan and Anirban Dutta explore the secret world of moths. This 82-minute film takes viewers to rarely-seen places where moths gather, and urges us all to retrospect about interconnections in the natural world. 22 November, 2:45PM Devi  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071136_b5c5753dc392a8d0f486d8a9c07b7d56ebae51e040d3d21c6ebac94b299d8557.jpg" data-media-id="editor_4" data-image-id="20241119071136_b5c5753dc392a8d0f486d8a9c07b7d56ebae51e040d3d21c6ebac94b299d8557" data-rendition-name="original" width="1920" height="906" loading="lazy" alt="Devi NT"> </figure>  This feature-length documentary by Nepali journalist and director Subina Shrestha garnered attention internationally in Hot Docs, Doc Edge and DMZ Docs. It follows the life of Devi Khadka, a rebel warrior, mother and survivor of sexual violence during the civil war. This is the first time this 80-minute film will be shown in Nepal.&nbsp; 22 November, 6PM No Monastery No Village&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071136_a2fc110c3116ccb1b772b7bd731bed78cfc5c2121e85d60d9ff14f30bc873382.jpg" data-media-id="editor_5" data-image-id="20241119071136_a2fc110c3116ccb1b772b7bd731bed78cfc5c2121e85d60d9ff14f30bc873382" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="No Monastery No Village NT"> </figure>  High up in the secluded village of Halji in Humla, a Glacier Lake Outburst Flood threatens a century-old monastery and the village with a population of 500. This 28-minute documentary, directed by Nepali climate activist Tashi Lhazom, highlights the faith and resilience of the villagers' fight to preserve their way of life.&nbsp; 23 November, 2PM Agent of Happiness  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071136_6153b4bd7c3602d44309e336f9f214ef1ba36e0208b16cd4f8363a4b38bf6f19.jpg" data-media-id="editor_6" data-image-id="20241119071136_6153b4bd7c3602d44309e336f9f214ef1ba36e0208b16cd4f8363a4b38bf6f19" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="Agent of Happiness NT"> </figure>  Directed by Arun Bhattarai from Bhutan and Dorottya Zurbó from Hungary, this feature-length documentary follows a surveyor who measures happiness as per the GNH (Gross National Happiness) index in Bhutan, as he goes on a quest searching for his own happiness. This year’s opening film for FSA, this 90-minute documentary will be screened on Saturday.&nbsp; 23 November, 4:15PM Hollywoodgate  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071136_41dbf1181f697611d83d653cfcd013473c3b50e55d8a742de430400d6859d28a.jpg" data-media-id="editor_7" data-image-id="20241119071136_41dbf1181f697611d83d653cfcd013473c3b50e55d8a742de430400d6859d28a" data-rendition-name="original" width="1850" height="1000" loading="lazy" alt="Hollywoodgate NT"> </figure>  Director Ibrahim Nash'at documents the transformation as the US militia abandons operations in Afghanistan, and the Taliban occupy their bases and transform into a military regime. This movie was nominated for and has won internation film awards. &nbsp; 23 November, 6:30PM The World is Family  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071136_a52b451e30c7ed76091029a0e80ddfc610e7901f712be94840271b0dbac22f1c.jpg" data-media-id="editor_8" data-image-id="20241119071136_a52b451e30c7ed76091029a0e80ddfc610e7901f712be94840271b0dbac22f1c" data-rendition-name="original" width="1250" height="874" loading="lazy" alt="The World is Family NT"> </figure>  Born to a family of freedom fighters, director Anand Pathwardan explores his family’s connection to India’s Independence Movement. This 96-minute long documentary is a personal exploration and a window to India's past and the present. Pathwardan is a FSA alumnus.&nbsp; 24 November, 3:05PM All That Breathes  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241119071140_d552dde6a1ab4ef90d76559f0908fb9a0491666993c01637f65545005bc0a8bd.jpg" data-media-id="editor_9" data-image-id="20241119071140_d552dde6a1ab4ef90d76559f0908fb9a0491666993c01637f65545005bc0a8bd" data-rendition-name="original" width="1359" height="890" loading="lazy" alt="All That Breathes NT"> </figure>  This Oscar-nominated documentary tells the story of two brothers, Nadeem and Mohammad, who have dedicated their lives to protect the black kite in New Delhi. Director Shaunak Sen looks at inter-species coexistence in an urban setting in this 94-minute movie, which will be Film Southasia’s closing documentary.&nbsp; 24 November, 6PM Film Southasia 21-24 November Yala Maya Kendra Entry: Rs50 per film

Pinki Sris Rana

Documenting the Anthropocene

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

Nepal, here comes the sun

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

Security forces targeted protestors disproportionately: HRW

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

Meme movements

Double-taxation, profit repatriation and capital gains tax have always been a headache for foreign investors in dealing with rent-seeking that Nepal is infamous for.
When Dolma Impact Fund, the only international venture capital company in the country, applied last year for exemption from capital gains tax citing Nepal’s Double Taxation Avoidance Agreement (DTAA) with Mauritius, bureaucrats at the Finance Ministry gave it the runaround.&nbsp;
But the interim government’s Finance Minister Rameshore Khanal, himself a respected former bureaucrat, is someone who knows that international treaties take precedence over national law.&nbsp;
On 30 October he gave Dolma a strategic capital gains tax break, convinced that Nepal needed to restore investor confidence especially after videos of the arson, vandalism and looting of the Hilton and Hyatt hotels and businesses on 9 September went all over the world.&nbsp;
Dolma’s stakeholders include other investment funds in the UK, US, Japan, Netherlands, Finland, Austria, Sweden as well as the World Bank. Nepal needs investment for future large infrastructure projects, and to tap those funds it has to &nbsp;streamline its bureaucracy, increase transparency and adhere to international obligations.
The argument is that making it easier for Foreign Direct Investment (FDI) is a much more efficient way to spur the economy and create jobs than the government raising revenue mainly through taxation, since the chances of that money being leaked through corruption or wastage in Nepal is high.&nbsp;
After news of Finance Minister Khanal’s decision on 3 October exploded in the media, Prime Minister Sushila Karki inquired about it. Chief Secretary of the GoN Eaknarayan Aryal clarified that the decision was not in the minutes of the Cabinet.
TAXING TWICE
Critics like economist Pushkar Bajracharya argue that it is important for Nepal to have a consistent taxation policy for FDI, and apply it uniformly so it does not deter investors. The Dolma decision could encourage other offshore investors to demand similar treatment, hurting Nepal’s tax base.
“Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs,” Bajracharya adds.
Nepal has double-taxation avoidance treaties with 11 countries, and there are reports of moves to end the DTAA with Mauritius signed in 1999. But just like with the Ncell’s capital gains row and the controversy over the US-funded Millennium Challenge Corporation (MCC) there has also been nationalist flag-waving in Nepal.&nbsp;
“We were raising a fund that could have brought $1 billion in for energy, and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” Tim Gocher, CEO of Dolma, told Nepali Times on the phone from London.
Dolma claims that Nepal’s DTAA with Mauritius means profit arising from sale of shares should be taxed only in the resident state and not in Nepal, and also cited the Treaty Act 1990 which states that treaties signed by Nepal supersede domestic law in case they contradict each other.
Gocher said it makes sense for his fund to be based in Mauritius: “When you have investors from all over the world, you have to choose a domicile, and Mauritius is probably the most popular for development finance institutions due to strong governance, anti-money laundering laws and treaties with developing countries like Nepal.”&nbsp;
Nepali officials, however, see Dolma as a conduit company sourcing funds from outside Mauritius or Nepal and label it as possible ‘treaty shopping’. A similar case involving the sale of Ncell ownership went to the Supreme Court and all the way to the International Tribunal at The Hague, and both ruled against exemption to DTAA.
Officials argue that approving an exemption for Dolma would contradict that precedent. The Attorney General’s office cited Section 73 of the Income Tax Act of 2002 which states that to avoid double taxation, more than half of the company has to be owned by individuals residents of both Nepal and a foreign country.
Bureaucrats also seem to be wary about being hauled over the coals at the Commission for the Investigation of the Abuse of Authority (CIAA) if they agree to Dolma’s demands, even though there is a legal argument that the Nepal treat act stipulates that in case of disagreement international obligations take precedence over domestic laws..&nbsp;
“It was when the new government decided to uphold the treaty that the whole hoo-hah started,” said Gocher. “It is crystal clear, and the way international treaties are dealt with all over the world.”
Chief Secretary Acharya, who is retiring next week, seems to want to avoid being haunted by any whiff of controversy before he leaves, but also faces intense lobbying by the international community for Dolma’s exemption.&nbsp;
Dolma currently invests in companies such as Chirayu National Hospital, CloudFactory Holdings Limited, Foodmandu, FuseMachines, Rhododendron Biotech, Setikhola Hydropower, and Solar Farm Nepal.&nbsp;
Dolma has asked to be exempt from being taxed twice: in Nepal, where it invests, and in Mauritius, where it is based, and points to a law that says international treaties override domestic law in the case of a contradiction. Government officials point to the Ncell precedent saying it will be illegal. But the government is not giving in, due to the Ncell precedent and to prevent others in future asking for similar exemptions.&nbsp;
<a href="https://www.youtube.com/watch?v=uNdMuD_4yGw&amp;t=5s" target="_blank">Watch interview</a> on Nepali Times Studio with Tim Gocher.

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