With just under two months remaining till the end of the current fiscal year, the<a href="https://nepalitimes.com/news/nepal-government-changes-again"> Nepal government</a> this week is set to announce its budget for the year 2025/26.&nbsp; Nepal’s budget has grown steadily over the past decade, from Rs618 billion in the fiscal year 2014/15 to Rs1.79 trillion in 2022/23. But this upward trend tells only half the story, as the total expenditure has consistently fallen short of the planned budget.&nbsp; Short of flamboyant promises and populist schemes, successive Nepali governments, regardless of party, have consistently failed to utilise the allocated budget. This year, Nepal spent just 36% of the allocated development budget. Such recurrent underspending diminishes the government's ability to simulate the<a href="https://www.econlib.org/library/Topics/Details/aggregatedemand.html#:~:text=What%20Is%20Aggregate%20Demand%3F,%2C%20services%2C%20and%20capital%20goods." target="_blank"> aggregate demand</a> and slows economic growth.&nbsp; The country’s current annual average total expenditure shortfall is just over 20%, largely due to bureaucratic and institutional inefficiencies that continue to hamper budget implementation. Furthermore, poorly-made project proposals, shoddy planning, slow-moving procurement activities, quick turnover of technical staff, and inefficient inter-ministerial coordination contribute to a limited capacity to administer development across Nepal.&nbsp; This has led to a culture of frantic, &nbsp;last-minute budget spending on Nepal, with <a href="https://internationalbudget.org/wp-content/uploads/Nepal-Budget-Credibility-and-the-Sustainable-Development-Goals.pdf" target="_blank">40</a>% of the allocated development expenditure spent on the final month of the fiscal year, leading to a misuse of resources and poor project results. These inadequacies are compounded by the lack of coordination between federal, provincial, and local governments, especially as capacity constraints at the subnational level have been a long-standing issue. Experts express particular concern over provincial and local governments, where staff are often short on technical skill and administrative know-how required for budget implementation.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250528030544_6eb2a05152532fbffd1ec32f130b0d030baf2b46963be269b68bc50417d1a814.png" data-media-id="editor_3" data-image-id="20250528030544_6eb2a05152532fbffd1ec32f130b0d030baf2b46963be269b68bc50417d1a814" data-rendition-name="original" width="512" height="485" loading="lazy" alt="Budget NT"> </figure>  For instance, provincial governments spent just 34% and local governments spent 24.4% of its budget in the fiscal year 2022/2023, which suggests a persistent deficit in planning, implementation, and resource management. &nbsp;&nbsp; A breakdown of the recurrent and capital expenditures reveals even deeper dysfunctions and gaps between the allocated and actual spending of recurrent and capital expenditure. Recurrent expenses are government spending to maintain <a href="https://nepalitimes.com/opinion/comment/nepals-uncivil-servants">public services</a> and administration, including interest, pensions, salaries, social security, and subsidies. Meanwhile, <a href="https://nepalitimes.com/news/till-debt-do-us-part">capital expenditure</a> involves investing in long-term assets such as development programs, equipment, and <a href="https://nepalitimes.com/banner/climate-smarter-himalayan-infrastructure">infrastructure projects </a>to expand the productive capacity of the <a href="https://nepalitimes.com/banner/now-the-economy-stupid">economy</a>. As it stands, Nepal’s recurrent expenditure is staggering compared to capital spending. <a href="https://scispace.com/papers/relationship-between-capital-and-recurrent-expenditure-with-hpoenzfmk4" target="_blank">Studies</a> show that the money spent on recurrent expenditure tends to have a stronger and more immediate effect on the GDP.&nbsp; In the fiscal year 2022/2023, Rs1.18 trillion was allocated for recurrent spending, while Rs380 billion was earmarked for capital expenditure. However, actual spending fell short of allocations in both expenditures, with recurrent expenditure falling short by an annual average of 14.7% and capital expenditure by a much larger average of 35.30% over the last nine years. &nbsp;&nbsp;&nbsp; This consistent underspending in capital expenditure is particularly alarming, and has direct impacts on the macroeconomy. It also plays a crucial role in creating economic momentum through the proper business <a href="https://nepalitimes.com/news/why-invest-in-nepal">investment </a>climate and business confidence.&nbsp; When capital expenditure falls short, aggregate demand contracts result in fewer<a href="https://nepalitimes.com/banner/few-jobs-created-by-nepal-employment-drive"> employment opportunities</a>, reduced household consumption, and delayed infrastructure projects that discourage business investment.&nbsp; Meanwhile, the dominance of recurrent expenditure driven by rising administrative and social security expenditures continues to crowd out funds for capital investment, perpetuating a cycle where budget numbers grow, but transformative development fails to take shape. &nbsp; The core challenge in Nepal's budget execution can be explained by the <a href="https://www.sciencedirect.com/topics/social-sciences/principal-agent-theory" target="_blank">principal-agent</a> problem theory - an economic theory that explains the misalignment of conflicting incentives between two parties. In the context of Nepal, the Ministry of Finance is the principal authority that allocates the budgets and resources, while the line ministries are the agents assigned to propose and execute the budget.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250528030544_3b3b12a4065ae34b9703e848ff91f40ff570ce4b771e44d4338c4b134054f42e.png" data-media-id="editor_12" data-image-id="20250528030544_3b3b12a4065ae34b9703e848ff91f40ff570ce4b771e44d4338c4b134054f42e" data-rendition-name="original" width="512" height="377" loading="lazy" alt="Budget NT"> </figure>  However, a disconnect in incentives between the Finance Ministry and line ministries often leads to budget misallocations, which in turn cause inefficiencies and poor budget outcomes. &nbsp; One of the key dimensions of the problem is asymmetric information. The Line ministries possess detailed information of their needs and priorities in projects that are unavailable and unverifiable to the MOF. This information gap further incentivises ministries to propose higher budgets than actually needed.&nbsp; This is common behavior and expected in budget negotiations, as ministries compete for limited funds and seek to maximise their budget. Consequently, funds may be disproportionately allocated to ministries that lobby more effectively or exaggerate needs rather than those that would deliver the greatest public benefit. &nbsp;&nbsp; Read also: <a href="https://nepalitimes.com/news/nepal-in-the-red">Nepal in the red</a>, Ramesh Kumar This budgetary misallocation distorts not only priority projects &nbsp;but also induces &nbsp;inefficiencies in implementation. Where funds flow into inefficient use as a result, the government cannot deliver effective services or complete development projects within scheduled deadlines. This results in delayed spending, wastage of resources, and underperformance, which undermine economic growth and confidence in government. &nbsp; Closing the persistent gap between allocated total budgets and total expenditures and between the allocated and actual recurrent and capital expenditures requires the Finance Ministry to strengthen its <a href="https://ieg.worldbankgroup.org/what-monitoring-and-evaluation" target="_blank">monitoring and evaluation</a> to appropriately administer resources after the budget announcement.&nbsp; For this, the Finance Ministry must ensure effective monitoring of how line ministries spend their allocated funds throughout the fiscal year, so that it can hold the other ministries accountable and identify bottlenecks or time delays in budget implementation. This can be achieved through periodic reporting of progress, linking budget release with performance, and using combined financial management information systems. In addition, linking future budget allocations to ministries’ past performance in budget utilisation would create stronger incentives for responsible and efficient spending. When ministries know that their ability to secure funds in the next fiscal year depends on how well they manage and execute their current budget, they are more likely to submit realistic proposals and prioritise timely implementation. Doing so would help to synchronize the incentives of the Finance Ministry and line ministries in order for Nepal to effectively execute the budget and direct resources toward projects aligned with our national priorities, ultimately minimising the country’s budget deficit. Siddhartha Rayamajhi holds a BA in Economics from Kathmandu University.

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How Nepal can budget wisely

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20230208140212/63e39fed9c7e80680e0d7013jpeg.jpg" alt="" width="960" height="640"/>Bishnu Poudel has inherited the Finance Ministry at a time when the country’s finances are in a shambles because of ill-advised and inept policies of his predecessor.The Nepal government is living beyond its means. Expenses are not in line with revenue. As of 11 January, the total expenditure of the Nepal government in the current fiscal year stands at Rs559 billion against revenue of only Rs398.7 billion. This year’s budget projected a 21% increase in revenue from last year. However, data as of November 2022 shows that revenue collection has actually decreased by 20%.Revenue therefore has not kept pace with increases in government salaries, allowances, and bonuses. If this trend continues, the newly elected 7-party opposition-less coalition government will be in serious trouble.Nepal’s imports decreased by 20.17% in the last five months compared to the same time period last year due to the Nepal Rastra Bank’s ban on luxury items to sustain dwindling foreign exchange reserves.Read also:<a href="https://www.nepalitimes.com/editorial/nepals-political-economy/"> Nepal’s political economy</a>, EditorialWith year-on-year inflation reaching 8.08%, ordinary citizens’ demand for goods and services has fallen sharply. Meanwhile, increased interest on loans to more than 15% as a response to rising inflation has discouraged investment.Nepal’s primary sources of revenue are remittances, tourism, and export. Tourism is still not back on track post-Covid due to the Russian invasion of Ukraine, and the country’s exports in the last five months decreased by 34.61% as compared to the same time during the last fiscal year. This country is running just on remittance money that Nepalis abroad send home — either through official banking channels or hundi.But Nepal cannot depend on remittance forever, especially as we need workers at home to stimulate the agriculture sector, manufacturing, construction and tourism, which in turn will create more domestic jobs.Moreover, in his third term at the finance ministry, doubts as to Bishnu Poudel’s budget discipline are not exactly unfounded. Despite the country’s inability to spend, Poudel during his first term as Finance Minister in 2015 introduced a budget that was 28% larger than the previous fiscal year and passed it through ordinance. And during his second tenure in 2020, he revealed a budget that was 12% bigger than the previous one.Read also: <a href="https://www.nepalitimes.com/banner/nepals-opposition-less-parliament/">Nepal's opposition-less Parliament</a>, Shristi KarkiAlthough the minister may have inherited a country facing financial ruin from his forerunner, his own record is not particularly stellar. He is also known for recklessly increasing spending by increasing salaries and social security allowances during his terms in office.But the finance ministry and the minister think they are beyond reproach and criticism.It might seem like a given, but the finance ministry needs to take the initiative to reduce the wasteful government expenditure. Minister Poudel must work towards bridging the communication gap formed between his ministry and Nepal Rastra Bank during Janardan Sharma’s tenure. Unlike his predecessor, Poudel cannot interfere with the central bank’s autonomy on monetary policies.Too many parties in this coalition government means that there are too many hands on the budgetary honeypot. This will not make the minister’s job easy— but he will now have to navigate the will of seven political parties and their affiliated special interest groups and not be swayed by unreasonable demands from all sides. In fact, the Minister needs to be prepared to go against the coalition in order to prevent any misuse of the budget.Read also: <a href="https://www.nepalitimes.com/banner/prospects-of-nepals-tourism-in-2023/">Peak tourism in 2023</a>, Ramesh KumarAs finance minister, Poudel also bears the responsibility of raising the morale of business institutions and people to encourage investment and stimulate the economy.All of this is not to say that there have not been positives. Nepal’s foreign reserves increased by 2.5% from July 2022 to November 2022, following the embargo on the import of luxury items — even as there had been fears that Nepal would become ‘the next Sri Lanka’.Likewise, Nepal Rastra Bank’s recent amendment of the Working Capital Loans Guideline to increase investment might ease the strain on the economy.But embargoes and directives can only take the economy so far. Now, Poudel needs to work not just towards undoing and repairing the mismanagement of the ministry, but actively work towards policy reforms in order to get Nepal’s economy back on track.The minister must thus focus on good governance, refuse to buy into the demands of special interest groups, and facilitate the protection and appropriate use of state resources.Read also:<a href="https://www.nepalitimes.com/editorial/new-year-challenge-to-new-government/"> New year challenge to new government</a>, EditorialRamesh Kumar

Now the economy, stupid

<figure><img width="640" height="370" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121140/636b92619c7e80680e06f145jpeg.jpg" alt=""/><figcaption>Tata's Nexon EV series lines up its 5-seater. electric-powered SUVs, the most popular electric car in India this year, and soon to be launched in Nepal.</figcaption></figure>Electric car importers are preparing to meet a post-pandemic demand for electric vehicles after the Nepal government in its new budget scrapped <a href="https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNFYlNmJFW4Nf2GDTZoi3-VpVdwjwg">taxes imposed last year</a>.The new budget presented by Finance Minister Bishnu Paudel on 29 May has <a href="https://www.nepalitimes.com/latest/new-nepal-budget-sparks-electric-comeback/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/new-nepal-budget-sparks-electric-comeback/&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNHiTOH3wA_f6Uhx78O65Lzz8aLXSQ">completely repealed excise duty</a> on battery operated cars, while cutting customs duty down to the earlier 10%. Earlier <a href="https://www.nepalitimes.com/here-now/plug-ins/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/plug-ins/&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNHWqGQrv3SikN7Z6JfANYPn7kZsuA">tax cuts in 2016</a> had increased affordability and, combined with improved range of battery cars, had made them gain popularity in Nepal.Importers of electric vehicles are now rushing to cash in on an <a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/electri-city-cars/&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNHbj5a27VragINFKdTBxJFSdWTqEQ">expected rise in customer demand</a> once the lockdown is lifted. In addition to the brands that have a head start in e-cars in Nepal like Hyundai, Kia, Mahindra, MG, India’s TATA Motors is planning an aggressive promotion of its electric Nexon model after its launch soon.<a href="https://cars.tatamotors.com/suv/nexon" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://cars.tatamotors.com/suv/nexon&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNEnJAYTtlCWAsW8S3SccRE-wAHevQ">Petrol and diesel Nexons</a> are already a familiar silhouette in Nepal’s roads since they were launched in 2017, and TATA hopes to repeat here the success it has in India with the electric version of the compact SUV. More than 4,000 electric Nexons have been sold in India since its launch in January, with the slowdown only because of the second wave lockdowns. This makes the Nexon India’s best-selling electric vehicle with 64% market share already.The redesigned <a href="https://nexonev.tatamotors.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://nexonev.tatamotors.com&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNE6oijZeLG82VSIq1wEKbKxFghzsA">Nexon EV SUV</a> with its Ziptron powertrain looks identical to the fossil version, except for its blue highlights, snazzy looking projector lights and aerodynamic front grill. Potential buyers in Nepal will be looking at ground clearance because of the country’s notoriously bad roads, and here the e-Nexon scores better than its Korean and Japanese counterparts with 205mm clearing underneath (compared to 177mm in the MG, for instance). <img width="640" height="232" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121140/636b92649c7e80680e06f146jpeg.jpg" alt=""><img width="640" height="238" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121140/636b92669c7e80680e06f147jpeg.jpg" alt="">The Nexon comes with all the accoutrements of its petroleum-burning cousin, including the ZConnect that allows owners to remotely keep track of the status of the car. The electric motor packs quite a punch in the torque department, giving the Nexon formidable acceleration (0-60km in 4.6 seconds) that will come in handy while overtaking a line of overloaded trucks on the Prithvi Highway. Charging is also quite impressive, with its lithium ion batteries (8 year warranty) to get 80% recharge in 1 hour with DC fast charge, and 100% all night home AC recharge with a 15amp plug. A petrol Nexon needs Rs5,500 to fully top up its 44l fuel tank, while it will cost less than Rs500 in the electricity bill for a complete charge.  <img width="640" height="444" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121140/636b92699c7e80680e06f148jpeg.jpg" alt="">The only downside of the Nexon with its 30.2kWH battery pack is perhaps its range which, at 312km on a full charge, is slightly less than the Kia Niro (455km) and the Hyundai Kona (482km) both of which have 64kWH batteries — but then those models cost more. Both ranges depend on AC use. Still, the Nexon's range is more than enough to get from Kathmandu to Pokhara on a single charge even with AC.This is what is making makes all electric vehicles financially attractive over the long term. Nepali consumers who had turned away from battery cars in the past year because of the higher taxes, will now find both the upfront cost and the energy savings will make e-vehicles much more competitive compared to fossil fuel cars.<a href="https://assured.sipradi.com.np/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://assured.sipradi.com.np&amp;source=gmail&amp;ust=1623653648829000&amp;usg=AFQjCNEizaM9cIGMcEhfi--1Qwvgcs_KEw">Sipradi</a>, the TATA distributors in Nepal have not yet announced the price of the electric Nexon, but it is suggested that it will be less than the Rs 4.9 million price tag of the petrol Nexon. This compares favourably to its nearest rival in the performance range, the smaller Mahindra eKUV which could sell for approximately Rs 4million after the tax revision.Nepal has announced it will stop selling petroleum cars by 2031, and this is only because neighbours India and China have also announced that they will only be making electric or hydrogen-fuel cars by that time.Other electric cars in the market include the Kia Niro which had stopped being imported after last year’s budget hike that took its price tag to a whopping Rs 12.5 million. But with the new budget revision, the price is down to Rs7 million again. Similarly, the Hyundai Kona is priced at Rs5.6-Rs7.1 million depending on the capacity, while its Iconiq electric sedan is Rs 5.7 million. MG’s Chinese made eZS was also quite popular till the budget hike last year, with dozens of its vehicles stuck at customs because they arrived after the tax increase. The price of these SUVs compare well with the Niro and Kona at Rs 5.1 million.The pioneer of electric vehicles in Nepal is the Mahindra e2O, and is still the most popular for city driving with a range of 120km, a ground clearance of 170mm and a price that has now come down to Rs2.6 million for the 4-door model. Needless to say, all these are approximate, as most dealers are still in wait-and watch mode and have not announced the exact prices yet. Despite the excise and import taxes being scrapped, customers will still have to fork out 13% VAT, and the government has kept Finance Minister Yubaraj Khatiwada’s increase in road tax for electric cars.E-vehicle owners paid no road tax from 2016 till last year’s budget. Since then, it has gone up to Rs15,000 per year for battery cars in the 50-125kW range, Rs20,000 for e-vehicles of 126-225kW and Rs30,000 for cars in the 226-and above range. Khatiwada last year slapped excise duties on e-vehicles of 30-80% depending on their capacity, and levied customs duty of 60%. He justified it saying electric SUVs were luxury items, and the government needed to augment revenue to fight the Covid-19 pandemic.This pushed e-vehicles out of the market at a time when sales had just started to pick up, and various brands of electric vehicles were gaining popularity because of their expanded range. But Khatiwada’s move  spiked prices of electric vehicles by 120-140%, making them less competitive vis-a-vis fossil-fuel alternatives.  Finance Bishnu Paudel’s move appears to be geared to reducing the petroleum import bill, and also to increase electricity consumption as Nepal’s new hydropower plants come online this year, giving an energy surplus.

E-vehicles prepare for post-lockdown boom

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a539b9c7e80680e05235cjpeg.jpg" alt="" width="1400" height="933"/><figcaption>Photo: BIKRAM RAI</figcaption></figure>In the past three years, federal and provincial governments spent a massive Rs216.5 million on vehicles. If we add the budget allocated to vehicles this fiscal year, it adds up to more than Rs250 million, not including the budgets for cars of local governments and projects.All three spheres of government are ignoring their own declaration to minimise expenses, and are wasting money on frivolous items. And the irony of it all is that the <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/SUV-nada-auto-show-2015,2586" target="_blank" rel="noopener">SUVs are driving along roads that are in advanced stages of disrepair</a> because the money has all gone for expensive cars.Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=31531&amp;preview=true" target="_blank" rel="noopener">Disrepair</a>Though the government has been <a href="https://www.nepalitimes.com/banner/dangerous-driving/" target="_blank" rel="noopener">slow to provide development and service delivery</a>, vehicle-related expenses have grown six-fold since 2013. The federal government is the biggest spender: provincial governments accounted for just Rs20 million spent on cars in the past three years.This fiscal year the federal government spent 2.45% of its development budget on vehicles. While it is perennially unable to fully disburse that budget, it spent four times more on vehicles than the amount allocated, even transferring money from other budget lines to do so.“Using <a href="https://www.nepalitimes.com/opinion/nepals-fatalistic-ke-garne-culture/" target="_blank" rel="noopener">unspent development budget</a> to buy vehicles is just an unnecessary expense,” says former government secretary Purna Chandra Bhatttarai. Other experts say that it is not just elected representatives, bureaucrats are also draining state resources.According to the 56th report of the auditor-general, among the 800 vehicles in the 22 Singha Darbar-based ministries, only 622 are operational. Some are not being used even though they are in running condition — new vehicles are being bought before old ones are phased out. After an order from the PM’s office, 201 vehicles were handed over to various organisations this year, including many that were still in working order.Read also: <a href="https://www.nepalitimes.com/here-now/no-shame/" target="_blank" rel="noopener">No shame</a>“Buying new vehicles involves kickbacks, so the tendency to buy new vehicles is increasing,” says former finance secretary Rameshwar Khanal.Four new Scorpios were bought for deputy attorney-generals last July, not because they were necessary but because the existing five-year-old vehicles were considered too old. At the end of the last fiscal year, 16 Scorpios were purchased for the chiefs of the House of Representatives and National Assembly, displacing 10-year-old vehicles.The National Inclusion Commission bought five vehicles costing at least Rs4 million for its chief and 4 members. But to date the commission has only one member — the others have not yet been appointed. The vehicles are covered and stored on the office premises. Many other new commissions have already bought vehicles for their yet-to-be appointed members.Read also: <a href="https://www.nepalitimes.com/editorial/a-klepto-republic/" target="_blank" rel="noopener">A klepto republic</a>, Editorial<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a539c9c7e80680e05235djpeg.jpg" alt="" width="809" height="442">According to the auditor-general’s report, there are 1,323 officer-level officials in the Ministry of Agriculture, and 1,577 vehicles in operation. There are 174 vehicles for 90 officers in the Finance Ministry and 151 vehicles for 94 officials in the Prime Minister’s Office (PMO). Many senior officials are accused of having separate vehicles for home and office use.According to a guideline issued by the Finance Ministry, new vehicles should be bought only for newly-established organisations. Other offices should buy new vehicles only every 15 years. This guideline is considered legally binding, so ministries and other bodies are actually breaking the law. Only officials at joint secretary level and above are supposed to get vehicles, but today deputy secretaries and even junior officers are riding in government vehicles. Some officials have even acquired the habit of buying a new vehicle immediately after they are promoted or transferred.Joint Secretary Binod Kunwar of the PMO says the office has made efforts to have an inventory of vehicles in working order, but hasn’t succeeded because of lack of cooperation from government entities.Read also:<a href="https://www.nepalitimes.com/here-now/the-business-of-politics-undermines-nepals-democracy/" target="_blank" rel="noopener">The business of politics undermines Nepal's democracy</a>, Ramesh Kumar<a href="https://www.nepalitimes.com/here-now/nepal-has-to-curb-corruption-before-wooing-investors/" target="_blank" rel="noopener">Nepal has to curb corruption before wooing investors</a>, Ramesh KumarThe Ministry of Finance does have guidelines on the capacity of vehicles that can be bought, but they are routinely ignored. Even money allocated to build public infrastructure is being spent on vehicles.Repair and maintenance of vehicles is another area full of irregularities, including money being allocated for the upkeep of vehicles that have been in storage for years. Kunwar says the vehicles have become a long-term burden on the state.The Ministry of Finance continues to dole out huge sums of money to keep officers happy, and the government has taken no steps to regulate it, despite the fact that the Finance Ministry has issued guidelines to reduce operating costs. This includes a rule that government vehicles should not have private license plates, but this is also ignored.The government also has a <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/" target="_blank" rel="noopener">policy of going electric</a>, but continues to buy fossil fuel vehicles. Former Finance Secretary Rameswhor Khanal, who himself drives an <a href="https://www.nepalitimes.com/banner/electri-city-cars/" target="_blank" rel="noopener">electric Kia Soul</a>, explains:  “There are fewer dealers of <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/" target="_blank" rel="noopener">electric vehicles</a> in the market, so there are less kickbacks in their purchase. Besides, you cannot make up fake bills of repair and maintenance of electric cars, which is why they are less popular.”

Driving Nepal deeper into debt

Many of us former Nepal Peace Corps volunteers (PCVs) would agree that our time in Nepal changed in significant but very different ways our perspectives on life if not the future paths we chose to follow. Of no one was this truer than Dorothy Mierow. Dorothy was born in 1920, in Colorado Springs. Her father Charles C Mierow was a classics scholar and Latin professor, who served for ten years as president of Colorado College.&nbsp; Dorothy developed an interest in animals as a child, graduated with a BA degree in natural history from Carlton College in 1942, a Master’s in biology from the University of Pittsburgh, and another Master’s in geography from the University of Minnesota.&nbsp; As a young woman, Dorothy traveled with her father throughout Europe, including a visit to ancient Greek ruins, and took a Magellan Tour by cruise ship around the world in 1958.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071901074_0bad133ab22aada319e74bbad95d563e191371db291c08f373839fbd15440262.jpg" data-media-id="editor_0" data-image-id="2025071901074_0bad133ab22aada319e74bbad95d563e191371db291c08f373839fbd15440262" data-rendition-name="original" width="903" height="1178" loading="lazy" alt="How the Peace Corps changed a volunteer's life"> <figcaption>HOME AWAY FROM HOME: Dorothy Mierow as a college student in her native Colorado.</figcaption> </figure>  She was a college teacher during much of the 1940s, also teaching at a girls’ school in Hawaii. Then back to her native Colorado in 1953, where she became a curator and later director of the Colorado College Natural History Museum. She taught geography classes, and in her free time, Dorothy climbed 22 of Colorado’s 14,000-foot peaks. Traveling in India in 1960, Dorothy decided to spend two weeks in Nepal. In late 1961, she filled out an application to join the Peace Corps and specified that she wanted to go to Nepal, ‘because I admired the people so much when my father and I were there on our trip’.&nbsp; Dorothy reached Kathmandu in September 1962 as the first group of American Peace Corps volunteers in Nepal. She stood out from the others: one of the few women in that group, surely the oldest at age 41, a world traveler, and a woman who already had established a professional career.&nbsp; One doubts if Dorothy had had a husband and children whether she would ever have gone to work and spend much of the rest of her life in Nepal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071901078_68e84ade1ffb0f6c83c7f8fa5c1e7315b5f6c543217f96cde012e4d86f171515.jpg" data-media-id="editor_1" data-image-id="2025071901078_68e84ade1ffb0f6c83c7f8fa5c1e7315b5f6c543217f96cde012e4d86f171515" data-rendition-name="original" width="1259" height="910" loading="lazy" alt="How th Peace Corps changed a volunteer's life NT"> <figcaption>Pokhara Bazar in 1962.</figcaption> </figure>  The Peace Corps assigned Dorothy to teach geography at Tri-Chandra College. After the school closed in the winter due to lack of heating, USAID and the College of Education asked Dorothy to help train general science teachers.&nbsp; She taught for two months and became involved in a textbook-writing project, commenting: ‘I would like the children to know something about public health, conservation (the trees are going fast and so is the soil), and learn the names of some of their common birds, trees, and flowers. They are more impressed with electricity, airplanes, and cell structure.’ When a new college opened in Pokhara in 1963, Dorothy was transferred there and lived with a Nepali family. The college boasted 30 students and no permanent buildings.&nbsp; In October 1963, Dorothy wrote: ‘Pokhara is a town of almost 5,000 people … We are in a fertile valley surrounded by foothills … There is a small Mission Hospital … a Leper Hospital and Tibetan Refugee Camp started by the Red Cross and now run by the Swiss. With winter approaching, more Tibetans are appearing in town, often with pack horses or donkeys. Some have been carrying large boxes of powdered milk,donated (by USAID) to the camp from the airport … There is no electricity, and the transportation problems make many items scarce and expensive. I am really a sort of a museum. The landlord brings all kinds of people in to see how I live and count my shoes and dresses. They express amazement at my books, pictures, tin oven, Nepali dolls from Kathmandu, screened food shelves and curtained closet.’ The standard term for Peace Corps volunteers was two years, but Dorothy extended her term and was still at Prithvi Narayan College at the end of 1965, when she wrote that she had 20 Geography students in the first-year class and 6 in the second year preparing for the IA Examination. The college enrollment was 125 students, and the foundation for a new science building was being excavated.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071901074_c6a80e5e0db0c705b2f8733c6d30dc0386fe3abbd2238ea9d947b7d746f94a29.jpg" data-media-id="editor_2" data-image-id="2025071901074_c6a80e5e0db0c705b2f8733c6d30dc0386fe3abbd2238ea9d947b7d746f94a29" data-rendition-name="original" width="902" height="605" loading="lazy" alt="How the Peace Corps changed a volunteer's life"> <figcaption>Mierow and friends at Phewa Lake.</figcaption> </figure>  Dorothy noted that she ate one meal a day at the (Shining Mission) Hospital but otherwise lived on dal-bhat, momo, and potato curry at local shops. However, she had developed a new passion: to build what she initially called the Pokhara Museum of the Himalaya. In commendable Peace Corps fashion, Dorothy always worked with Nepalis and respected the culture. ‘The greatest joy and satisfaction I have had has been from the building of a Museum-Library in memory of my parents … It has been possible to feel like a wealthy benefactor with the money saved by father for the family’s education and now available for the education of others… (Father) would have loved to be in on the founding of a new college and be able to plan a library. Several hundred of the books to be in the museum-library came from his collection and were carefully selected to be of use for students in Nepal…’&nbsp; ‘The museum part is to satisfy my own inclinations and was thought of when I found how little diversion there was for the people of Pokhara… It is part of the University requirements for the college that it should have a geography and biology museum. The museum building is small but adequate.&nbsp; I have tried to design it in harmony with Nepalese architecture and decorate it with some of the art of the best artists or woodcarvers… Posts holding up the porch roof are carved by Cottage Industries to represent different peoples of Nepal in typical costumes. The door was carved by a local wood carver and has typical birds of Nepal around it. Inside are 10 roof-support carvings designed by the retired Director of the National Museum in Kathmandu, Mr. C.M. Maskey.&nbsp; They were carved by the best wood carvers in Patan very skilfully. The building has three rooms: the library, the exhibition room, and a smaller workroom which can be used by our newly formed Woman’s Club as well as other groups or classes.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071901074_03d3359c65389d30a0134e9a4862778994121e7e833b7d28b18e06e36fc76ff8.jpg" data-media-id="editor_3" data-image-id="2025071901074_03d3359c65389d30a0134e9a4862778994121e7e833b7d28b18e06e36fc76ff8" data-rendition-name="original" width="629" height="599" loading="lazy" alt="How the Peace Corps changed a volunteer's life"> <figcaption>Mierow with local women in Pokhara in 1969.</figcaption> </figure>  Dorothy promoted her project to influential Nepalis connected with organisations whose support she solicited: The Department of Archaeology, the Department of Agriculture, the Godavari Botanical Gardens; Tribhuvan University’s Science and Education Department, Nature Conservation Society.&nbsp; The museum was opened officially in early 1967. The Annapurna Natural History Museum, the building Dorothy designed and had constructed, is still open and features some exhibits which she created many years ago.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071901074_54326a8a0685e980e782378076de2f5cd02d2426e9b0d94eed972d3dbe83af26.jpg" data-media-id="editor_4" data-image-id="2025071901074_54326a8a0685e980e782378076de2f5cd02d2426e9b0d94eed972d3dbe83af26" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="How the Peace Corps changed a volunteer's life"> <figcaption>The Annapurna Natural History Museum.</figcaption> </figure>  Dorothy returned to America in 1967, but she longed for Nepal. In the spring of 1969, she again tried to enroll as a Peace Corps volunteer but was told that as she had spent more than four years, she would not be eligible for another assignment. Undeterred, she persuaded the college in Pokhara to invite her to return as a teacher.&nbsp; UNICEF and the Forestry Department sponsored Dorothy to prepare charts on trees, birds, animals and flowers in colour for distribution to the schools of Nepal. Dorothy, back in the Peace Corps, returned to Pokhara and the Museum in 1972. She formed a friendship with her former geography student from Sikles, Chandra Prasad Gurung, and in 1974, she brought Chandra to America, where he enrolled in Colorado College and studied cultural anthropology.&nbsp; Chandra subsequently earned his PhD in geography from the University of Hawaii and returned to Pokhara to become director of the Annapurna Conservation Area Project. Gurung actively promoted ecotourism, landscape conservation, and biodiversity conservation in Nepal. His life was cut short along with those of 23 other Nepalis and foreigners who perished in a helicopter crash near Taplejung in September 2006.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071901074_322d3c3ac6f1b08ffa07c44a19998b937a7db9eb43527f7539cf6481e1546314.jpg" data-media-id="editor_5" data-image-id="2025071901074_322d3c3ac6f1b08ffa07c44a19998b937a7db9eb43527f7539cf6481e1546314" data-rendition-name="original" width="2500" height="1000" loading="lazy" alt="How the Peace Corps changed a volunteer's life"> <figcaption>Mierow's four books on Nepal and its biodiversity. </figcaption> </figure>  Dorothy worked with several well-known Nepalis to publish her paintings and photos in beautifully illustrated books. She and Hemanta Mishra of the National Parks and Wildlife Service wrote Wild Animals of Nepal (Ratna Pustak Bhandar, 1976). More than 400 photos Dorothy took on treks to the Everest region, Gosaikunda, Muktinath, Jumla and Rara Lake, as well as travels in the Tarai, appeared in Himalayan Flowers and Trees (Sahayogi Prakashan, 1978).&nbsp; The botanist Tirtha Bahadur Shrestha identified the species. Dorothy and Kesar Lall published This Beautiful Nepal (Sahayogi Press, 1981). Birds of the Central Himalayas (1988) contained Dorothy’s paintings of 250 species of birds found along the areas of the Kali Gandaki River, Pokhara, Chitwan and the central Tarai. Dorothy summed up her life and work in Nepal in Thirty Years in Pokhara (Pilgrims Book House, 1997). Dorothy returned to Pokhara and her adopted Gurung family several times during the 1980s and 1990s to celebrate festivals and meet old friends. Her final years were spent at her mountain cottage in Green Mountain Falls north of Colorado Springs. She died at the age of 79 in August, 2000. Nepal gave new meaning and purpose to Dorothy Mierow’s life. Daniel W Edwards was a Peace Corps volunteer in 1966 and is the author of several books on Nepal. The author thanks Special Collections, Tutt Library, Colorado College.

How the Peace Corps changed a volunteer’s life

Does anyone know that 2023-33 was declared the <a href="https://nepalitimes.com/banner/visit-nepal-again">Visit Nepal</a> Decade? Or that Pokhara announced that 2025 is a Special Tourism Year? The fuselage of Nepal Airlines jets still carry the Visit Nepal Year 2020 logos. Such ad hoc and unnoticed promotion is emblematic of the way Nepal has tried to increase visitor arrivals <a href="https://nepalitimes.com/news/nepal-hopes-for-tourism-rebound-in-2021-rk4dlo9t">post-Covid</a> — and of the country’s wider political disarray. Deepak Raj Joshi of the Nepal Tourism Board (NTB) has his work cut out to coordinate various agencies of the government to boost arrivals.&nbsp; He says, “We have been working on marketing strategies to revive the tourism sector, and are hopeful that this year will mark a 8-10% increase in arrivals compared to the pre-pandemic times.” On paper, tourist numbers have rebounded to pre-Covid numbers with over 1 million last year, but official figures do not give a true picture of duration of stay, average spending, and the fact every visitor is counted as a ‘tourist’, even repeat visitors who come on business. The few bright spots are largely a result of private sector promotion of niche tourism products, individual social media posts of <a href="https://archive.nepalitimes.com/page/top-10-treks">adventurous treks in Nepal</a>, or the fact that Indians are allowed to enter China again to visit Lake Mansarovar and Mt Kailash via Nepal. Indeed, Simkot airport has up to 15 flights a day from Nepalganj bringing in <a href="https://nepalitimes.com/opinion/borderlines/nepal-india-trans-boundary-bonds">Indian pilgrims</a> who are then ferried by helicopter to the border in Hilsa, or Lapcha Pass from where the holy sites in Tibet are visible. The rudimentary hotels and rest houses along the route in Humla have been bursting at the seams for the past month, to the point that some establishments are no longer able to provide patrons basic amenities.&nbsp; Last year, 1.14 million tourists visited Nepal, and the government has projected up to 10% increase in tourist arrivals this year. International tourist arrivals to Nepal have been steadily increasing, especially from the US, Europe, and India. Domestic and regional travel has also increased after the <a href="https://nepalitimes.com/news/lockdown-5-utlzqtvs">Covid lockdowns</a>.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250717120756_e1c8f08e7e26496d2b2394e0be776e147fb46c415347b781ed9e5c64d9c9e505.jpg" data-media-id="editor_5" data-image-id="20250717120756_e1c8f08e7e26496d2b2394e0be776e147fb46c415347b781ed9e5c64d9c9e505" data-rendition-name="original" width="1145" height="668" loading="lazy" alt="Tourist numbers"> </figure>  The tourism industry employs at least 1 million people, trekking injects money directly into the <a href="https://nepalitimes.com/editorial/not-rising-nepal">rural economy </a>and sustains ancillary sectors like handicrafts and domestic aviation. In the last fiscal year, tourism brought in Rs82.33 billion, according to Nepal Rastra Bank. But the industry has been affected by negative publicity about poor infrastructure, air pollution in Kathmandu, travel safety and news of disasters like the <a href="https://nepalitimes.com/news/rasuwa-flood-likely-a-glof">China-Nepal flood last week</a> that made international headlines. Growing worries about the climate crisis is also affecting youth travel, especially from Europe. Read also: <a href="https://nepalitimes.com/news/missing-out-on-nepal-s-tourism-potential">Missing out on Nepal’s tourism potential</a> “The limitations of airport and road infrastructure has hindered the development of the tourism sector,” admits Joshi. “And many are put off by the appalling state of our road network, especially during <a href="https://nepalitimes.com/opinion/managing-the-monsoon">the monsoon season</a>.” Nepal is home to 20 protected areas, 10 heritage sites, and eight out of the world’s 10 highest mountains, and despite all the obstacles it is still the perfect destination for the modern social media savvy traveller, who are experience-driven and inclined to look for itineraries that emphasise wellness and cultural immersion.&nbsp; Some hotels around Kathmandu, Pokhara, Jomsom and the Khumbu have strived to adapt to this new tourism landscape, expanding facilities with significant international investment. <a href="https://nepalitimes.com/business/a-thamel-within-thamel">Luxury hotels like Aloft Kathmandu</a> in Thamel were inaugurated just before the pandemic lockdowns, survived the crisis and thrived as it. Says General Manager Vikram Singh (pictured, below): “Our prime location in Thamel enhances the guest experience, especially for those seeking convenience and immersion in the local scene and travellers who want to be in the centre of it all.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025071805070_8d29803e8b52bcd4439422e7b7a0bc25aa68ef3d227b9130bd0e079af626677d.jpg" data-media-id="editor_11" data-image-id="2025071805070_8d29803e8b52bcd4439422e7b7a0bc25aa68ef3d227b9130bd0e079af626677d" data-rendition-name="original" width="1066" height="1600" loading="lazy" alt="Aloft GM"> </figure>  <a href="https://nepalitimes.com/here-now/what-sustainable-tourism-means-in-practice">Sustainability </a>and environmental consciousness has also become an integral part of the hospitality industry. ISO certifications as well as sustainability initiatives like the Travelife sustainability certification for eco-friendly resorts validate credibility of hotels. Aloft is the first five-star hotel in Nepal to have earned the Waste Smart Certificate, and it has also been awarded the ISO 14001:2015 certification, which is the internationally recognised standard for environmental management systems (EMS). But such investments will not amount to much unless Nepal makes serious efforts to promote itself as a<a href="https://nepalitimes.com/here-now/peak-tourism-in-2023-9ukoi8iz?utm="> tourism destination</a>, especially to its two giant neighbours. More importantly, the country needs to increase activities in which tourists can spend the money they want to. “While <a href="https://nepalitimes.com/here-now/nepal-pushes-mountain-bike-tourism?fbclid=IwAR1MNH0iFGv1vRz5G9uZ4AzUlKxB6nY7JKq0qT6je_FV4_SuxPZqviwKGn0">mountaineering and adventure tourism</a> are extensively promoted, we have fallen short of marketing other elements such as wildlife, pilgrimage and cultural heritage,” says Joshi. “There is a need to diversify promotion to increase income from the tourism sector.” Meanwhile, making Nepal more accessible to international and domestic visitors, must also be a priority. Kathmandu remains the sole aerial gateway despite new airports in Pokhara and Bhairawa. “International airlines have shown interest, and if access and flights are increased these airports can be fully functional,” says Joshi. But Sichuan Airlines has stopped flying to Pokhara, and there does not seem to be much interest from Thai, Vietnamese and Cambodian carriers to fly directly to Lumbini. Says Singh: “There’s tremendous opportunity to strengthen Nepal’s destination marketing by telling richer, more compelling stories that <a href="https://nepalitimes.com/opinion/comment/culture-cannot-be-an-afterthought">connect travellers with our culture</a>, nature, and people.”

Tourism needs a new push

This week at the National Population Policy launch Prime Minister K P Oli exhorted Nepalis to get married by age 20 and have three babies by the time they are 30. This was the first indication that the highest office in the land has understood the need to address Nepal’s dramatically <a href="https://nepalitimes.com/news/nepals-demographic-window-is-closing">falling birth rate</a>, but Oli’s statement was greeted with ridicule on<a href="https://nepalitimes.com/banner/avoiding-the-quicksand-of-social-media"> social media</a> — especially by women. Most urban young are already grappling with economic pressures and shifting life priorities. Even with a university degree,<a href="https://nepalitimes.com/here-now/workers-return-to-jobless-nepal?%2F"> many cannot find jobs</a>, and are taking the first flight out for overseas employment. Having a child is now a fraught decision shaped by income, individual autonomy, and family pressure. The <a href="https://www.unfpa.org/swp2025">UNFPA’s State of the World Population report </a>released last month, highlighted a significant <a href="https://nepalitimes.com/here-now/migrating-males-and-population-decline">decline in fertility rates </a>around the world. The global average fertility rate is 2.25 children per woman, and 18% of the reproductive adults said they will not be able to have the number of children they desire. The total fertility rate in Nepal has plummeted to 2.1 births per woman — down from 5 just 30 years ago. This is considered replacement level, meaning the newborns will replace their parents.&nbsp; However, birth rates are not declining as rapidly everywhere. The Tarai in has a total fertility rate of 2.20, and northwestern mountains is still 2.24.&nbsp; There are multiple factors in play, and the report broadly divides them into four categories: health issues, economic concerns, fears about the future, and lack of a supportive partner or their absence. More than half of the respondents said finance, which includes unemployment and increased cost of housing, as well as parenthood, was a barrier to having children. “More and more people prefer one or two children at maximum. Many women also decide to have children at a much later age,” says Kamala Devi Lamichhane of Tribhuvan University. “The opportunity cost is far higher for women.” But there is also a cost for the country, as the National Population Policy notes. At the rate the total fertility rate is falling it will soon be below replacement level — meaning that in the next three decades Nepal will be confronted with an <a href="https://nepalitimes.com/opinion/the-future-is-older">ageing population</a>.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250714140740_bac3e5a284b69a77d97b3b99daf2e7fd3019bc48f1a399fb2771381c751d8291.png" data-media-id="editor_6" data-image-id="20250714140740_bac3e5a284b69a77d97b3b99daf2e7fd3019bc48f1a399fb2771381c751d8291" data-rendition-name="original" width="1302" height="501" loading="lazy" alt="Nepalis having fewer babies. Why?"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250714140740_251115b0a88d4e82be70245c43cb74477f3be18042ef1aa3b904c597d815f13b.png" data-media-id="editor_7" data-image-id="20250714140740_251115b0a88d4e82be70245c43cb74477f3be18042ef1aa3b904c597d815f13b" data-rendition-name="original" width="1125" height="500" loading="lazy" alt="Nepalis having fewer babies. Why?"> </figure>  Besides income, there are also cultural factors at play in women having fewer babies — they are expected to do all the childcare duties, even putting their careers on hold. In general, there is little help from spouses, and with more nuclear families there is less support from relatives. “Women today are well educated, career-oriented, and economically independent, allowing them to delay marriage as well as being conscious about their body and <a href="https://nepalitimes.com/multimedia/nepal-far-from-hitting-contraceptive-target?%2F">reproductive rights</a>,” says Laxmi Tamang of the International Confederation of Midwives (ICM). Also present at the policy launch was demographer Yagya Bahadur Karki, who said that women are more educated and hence, empowered to take their own informed decisions regarding having children.&nbsp; He adds, “But the fertility rates have reached replacement rate, and that stands as a warning for the future.”&nbsp; Fertility rates have fallen in inverse proportion to the rise in female literacy. The regions of Nepal where couples have more babies is where women are less educated. Couples in Madhes and Sudur Paschim provinces, where child marriage, gender-based discrimination, menstrual huts and dowry are still widespread are where the fertility rate is still high.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250717120740_ababfd31ed5ff79ded427e1f1adfff02e6af2384bd541e51dfe05e52fbbccb39.jpg" data-media-id="editor_9" data-image-id="20250717120740_ababfd31ed5ff79ded427e1f1adfff02e6af2384bd541e51dfe05e52fbbccb39" data-rendition-name="original" width="994" height="682" loading="lazy" alt="TFR Map"> </figure>  And because female literacy also has a direct correlation with <a href="https://nepalitimes.com/news/fatal-discrimination">infant and child mortality</a>, couples in those regions tend to have more babies so some of them survive.&nbsp; But it is Nepal’s urban centres among the educated where the increased choices in reproductive health, including alternative methods of conception like IVF and treatment for infertility, as well as <a href="https://nepalitimes.com/banner/implant-service-providers-take-contraception-to-nepals-poor">contraceptives</a> offer more options for family planning. “There are more choices regarding reproductive health, and there is more awareness as well, which is why people decide carefully on whether or not to bear a child,” says population expert Yogendra Gurung. <a href="https://nepalitimes.com/here-now/migrants-returning-from-the-gulf-with-infertility">Migration is another factor</a> adding to the decline in fertility rates. Many young Nepalis of reproductive age leave every day in pursuit of better jobs overseas. Spousal separation means fewer children.&nbsp; “Once away, even if not educated, they realise that child-rearing costs are high, and try to have fewer and even no children in some cases,” Gurung adds. Recent studies have also shown that men returning after their stint in the Gulf and Malaysia, where they are <a href="https://nepalitimes.com/news/gulf-workers-need-protection-from-heat">exposed to extreme heat </a>for extended periods as well as various chemicals and toxins in their work environment &nbsp;have a range of health problems, including infertility. To increase the birth rate, Nepal will have to reverse its family planning strategy of the past 40 years. Complicating this is that some regions of Nepal will need measures to control the birth rate, while urban areas will need a strategy to help parents have more babies. One way to help families have more children is to develop more <a href="https://nepalitimes.com/here-now/future-proofing-nepal-s-population-strategy?s=04&amp;fbclid=IwY2xjawFQf-NleHRuA2FlbQIxMQABHRxSwwGPfm7_2cBhDVAowPxEmFXP0Os-KRs1DXqIW_84wDhciExtZuNi1g_aem_jzRqN2cEVAppfwr5qedxRg">family-friendly policies</a> that favour women and youth as the Nordic countries, which also have falling birth rates, have done. They have introduced flexible parental leaves for both parents, including financial and health incentives. China, also concerned about its declining birth rate and an ageing population, now has a three-child policy as well as tax deductions, expanded childcare services, and leave policies to encourage couples to have more children. “We must work towards childbirth and childcare policies and plans that are suitable for Nepal, so that couples planning for children do not have to think twice about it because of finances or other reasons,” adds Gurung. Tamang of the International Confederation of Midwives says a gender transformative approach is needed to address the issues of the gender gap which is adding to the decline in childbirth. Husbands need to play a more important role in child-rearing. Instead of increasing fertility for the sake of it, the objective should be to assist young people to start the families they desire, at a point and time of their choice. Respect for everyone’s rights and dignity lays a foundation for a more balanced demographic trend. Lamichhane sums it up: “If fertility rates are to be sustained, it requires changes in the gender roles and behaviour, keeping the youth’s aspirations in mind.”

Nepalis are having fewer babies. Why?

Local residents of Mustang, including a sitting MP and several politicians, submitted a petition to Prime Minister KP Oli in Kathmandu this week urging the government to lift the region’s ‘restricted’ status. This is not the first time such a demand has been raised, and as infrastructure the region’s accessibility improved over the years, calls to remove the long-standing restriction have grown louder.&nbsp; Upper Mustang is no longer weeks away <a href="https://nepalitimes.com/here-now/postcards-from-kathmandu">from Kathmandu.</a> Nearly 85% of the road from Beni to Kagbeni has been blacktopped, and one can drive from Kathmandu to Lo Manthang with an overnight stop in Pokhara. Between April 2024 and April 2025, Lower Mustang received 144,745 international tourists, a near 50% increase compared to the previous year. Most of these were <a href="https://nepalitimes.com/opinion/borderlines/nepal-india-trans-boundary-bonds">Indian pilgrims </a>travelling to Muktinath. <a href="https://nepalitimes.com/here-now/comings-and-goings-in-mustang">Mustang</a> is also gaining popularity among Nepali visitors, with 700,000 visiting the region in 2024. A hotel operator in Kagbeni estimated that about 20% of Nepali visitors to Muktinath also travel to Korala, the trade and transit checkpoint on the <a href="https://nepalitimes.com/latest/north-of-the-border">China border</a>. That would mean that nearly 100,000 domestic tourists visit Upper Mustang annually. In stark contrast, international tourist numbers to Upper Mustang (north of Kagbeni) have remained stagnant, hovering around 4,000 visitors per year. The primary reason is the continued enforcement of the region’s restricted status. Foreign visitors must pay a steep permit fee: a minimum of $500 for 10 days, with an additional $50 per day thereafter. Tourism some entrepreneurs, politicians, and residents want these fees to be abolished so Upper Mustang can attract a broader range of international travellers. The success of Lower Mustang, where relaxed restrictions have led to a<a href="https://nepalitimes.com/here-now/boom-time-in-central-tarai"> tourism boom</a>, is often cited as proof of what lifting restrictions could achieve. Upper Mustang is not the only region in Nepal with a restricted status. Several northern areas prefixed with ‘Upper’ (Upper Manaslu, Upper Dolpo, Upper Kanchenjunga, and Upper Arun) also need similar permits and fees. Although no clear official explanation exists, these areas were primarily restricted due to historical inaccessibility, ecological and cultural fragility and security concerns. Read also: <a href="https://nepalitimes.com/news/upper-mustang-opposes-prohibited-areas">Call to scrap Upper Mustang tourist fee</a> In the 1960s and 1970s, these remote regions served as shelters for Khampa guerrilla fighters who launched cross border ambushes on the <a href="https://nepalitimes.com/here-now/the-last-days-of-the-khampa">Chinese military </a>across the border.&nbsp; Though the Khampa have long gone, security concerns rooted in that era seem to persist. The government in Kathmandu is seemingly unaware of the changed political and security landscape. If concerns do remain, they are not made public. One of the main reasons for maintaining the restricted designation is to limit visitor numbers. But with <a href="https://nepalitimes.com/opinion/the-road-out-of-nepal">improved road access and services</a>, as Upper Mustang has seen, this justification no longer holds. When Upper Mustang first opened to international tourists in 1992, it had no formal lodges or hotels, and it took four to five days of trekking from Jomsom to Lo Manthang.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250716120744_4e4405cf10e6f127f90a1cd40feda0b9d8d69efd13093a2563530ca31489ba9f.jpg" data-media-id="editor_8" data-image-id="20250716120744_4e4405cf10e6f127f90a1cd40feda0b9d8d69efd13093a2563530ca31489ba9f" data-rendition-name="original" width="2000" height="509" loading="lazy" alt="Lift restrictions on Upper Mustang"> <figcaption>Photo: DINESH SHRESTHA</figcaption> </figure>  Without a nechyang (a household with traditional friendship), it was difficult to find a place to stay or get a proper meal. Only a few elite households offered accommodation. Today, there are now more than 80 lodges and hotels above Kagbeni, spread across nearly every village. Several upmarket hotels now struggle to stay afloat during the off-season, relying on low-spending domestic visitors to survive. Lo Manthang, once a remote destination, is now just a few hours’ drive from Jomsom, easily reachable by lunchtime for early starters. Once the remaining road sections are blacktopped, travel time will be further reduced. Yet, the government still charges a flat $500 fee for a 10-day permit based on outdated &nbsp;assumptions from a bygone era. There has been no serious review of the permit structure to align with current realities, nor any response to local aspirations to attract more international tourists and <a href="https://nepalitimes.com/here-now/peak-tourism-in-2023-9ukoi8iz">harness tourism for economic development</a>. Concerns about over tourism are valid. There is a risk that increasing visitor numbers could erode Upper Mustang’s <a href="https://nepalitimes.com/here-now/a-million-mantras-in-mustang">cultural heritage</a>, social fabric, and fragile natural environment, precisely the features that make it special. However, the region’s 33 years of tourism experience have been largely positive.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250716120744_5c7e5e05097cd0e5a1027b51c7e3db3be0bd67e0f7cbaea6d2c447b1dacafc8a.jpg" data-media-id="editor_11" data-image-id="20250716120744_5c7e5e05097cd0e5a1027b51c7e3db3be0bd67e0f7cbaea6d2c447b1dacafc8a" data-rendition-name="original" width="1400" height="1050" loading="lazy" alt="Lift restrictions on Upper Mustang"> <figcaption>Photo: MUKESH POKHREL / NT ARCHIVE</figcaption> </figure>  Tourism has contributed significantly to the restoration and <a href="https://nepalitimes.com/here-now/the-history-of-heritage?%2F">preservation of religious and historical sites</a> like the Thubchen and Jampa monasteries in Lo Manthang, the ongoing conversion of the old palace in Ghami into a premium hotel, and the rehabilitation of many monasteries and chortens.&nbsp; These efforts, supported by international donors and heritage experts, demonstrate that tourism—when well managed—can be a powerful driver of <a href="https://nepalitimes.com/here-now/shrinking-tourism-s-ecological-footprint">conservation</a>. The high permit fees have been somewhat effective in limiting international visitors, but they have no influence on the growing number of domestic tourists, particularly during the Dasain and Tihar holidays. The most pressing need now is for all levels of government—federal, provincial, and local—to<a href="https://nepalitimes.com/news/why-invest-in-nepal"> invest in </a>managing tourist flows and maintaining tourist sites. These efforts are essential not only to enhance visitor experience but also to build long-term resilience and sustainability for the destination. Read also: <a href="https://nepalitimes.com/news/greening-nepal-s-tourism">Greening Nepal’s tourism</a>, Hanna Wells Visitor numbers are central to any tourism development strategy that aims to balance economic, social, and environmental goals. Clinging to obsolete policies and concerns to justify Upper Mustang’s restricted status is not only unfair, it also suggests an undemocratic and discriminatory attitude toward a remote district.&nbsp; Shailendra Thakali, PhD, is from Jomsom and is a freelance consultant on protected areas, tourism, conservation, and sustainable livelihoods.

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