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

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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