<figure><img width="4875" height="3768" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101140/63720d909c7e80680e0b78d1jpeg.jpg" alt=""/><figcaption>All photos: L’ITALIANO</figcaption></figure>It may not be part of the famous artisanal food and beverage marketplace chain, but a new Jhamel restaurant comes closest to being Kathmandu's own version of Eataly. <a href="https://vespercafe.com/">L'Italiano</a> opened its doors this week for Kathmanduities to indulge in Italian fine dining with authentic cuisine from Italy that ranks second only to Chinese in popularity worldwide. One might think the Nepali palate is used to Italian food -- after all, the ease of preparing pasta dishes have meant that it has started replacing <a href="https://www.nepalitimes.com/banner/exploring-nepals-culinary-diversity/">dal bhat tarkari</a> in many households, and the <a href="http://archive.nepalitimes.com/news.php?id=15241#.YjBxhO5BxH0">pizzas</a> are hot favourites after <a href="https://www.nepalitimes.com/here-now/wow-binod/">momos</a> in restaurants. Thamel’s <a href="https://www.fireandicepizzeria.com/">Fire and Ice</a> and <a href="https://roadhouse.com.np/">Roadhouse pizzerias</a> have been consistently popular for decades in Kathmandu. Establishments specialising in Italian food are aplenty, perhaps only behind Indian and Chinese restaurants. So what does one new Italian restaurant add to Kathmandu's growing food culture? Much like momos are a variation of Tibetan dumplings, but with a wide range of types, ingredients and spices, Italian food has gone through alterations in Nepal. So much so that locally served pizza, pasta, risotto and lasagne do not taste anything like they are supposed to, says Italian chef Andrea Cannalire who was recently in town. <figure><img width="1694" height="917" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101140/63720d959c7e80680e0b78d2jpeg.jpg" alt=""><figcaption> </figcaption></figure>Cannalire is a Michelin star chef based in Ostuni in Italy, close to Francavilla Fontana where he grew up. While he was working in Phuket in Thailand last year, he found out that a restaurant in Kathmandu was looking to rebrand itself.Through a common friend, Cannalire agreed to visit Nepal and was here for over a month training Nepali chefs before the grand opening of L’Italiano this week.“Italian cooking that has evolved in Kathmandu has gone through some major transformation. It has reached a point where I’m having to introduce the traditional way of doing Italian cooking,” says Cannalire, who has over a decade-long experience in gourmet cooking. “Chef as well as the clientele, have to be educated on what authentic Italian is.”During his month touring various restaurants in Kathmandu and Pokhara, Cannalire got to like the Nepali Thali and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/benefits-of-barley,1924">Phaparko</a> Dhido. However, he noticed that many eateries overdo spices so that it is difficult to savour the true flavour of food, for example in preparing mutton curry. This is why he has taken special care to train Nepali chefs in L'Italiano to use spices in moderation.  <figure><img width="5760" height="3840" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101140/63720d989c7e80680e0b78d3jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="5760" height="3840" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101140/63720d9c9c7e80680e0b78d4jpeg.jpg" alt=""><figcaption> </figcaption></figure>A big part of the mutated taste of Italian food in Nepal is the lack of genuine ingredients. Kathmandu markets do not have anything close to real mozzarella, and the prosciutto is not the genuine ham from Parma.Similarly, lasagne is traditionally made with ragu that has beef mince in it, which means most restaurants would have modified it."Nepalis seem to love chicken topping in pizza, but you would never do that in Italy," quips Cannalire, who got interested in cooking from a young age.“Every time I went to restaurants with my family when I was a boy, I used to wonder what went on behind the doors that lead to the kitchen,” recalls Cannalire. “This extended even to the games we played as a child, I used to be fascinated even with a play kitchen my cousin had.”Cannalire first started working in restaurants around his hometown, but he started exploring and interning at different places, improving his cooking skills. Before long, he found his calling in gourmet cooking and returned home to southern Italy to work in a hotel restaurant nearby. <figure><img width="5760" height="3840" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101140/63720da09c7e80680e0b78d5jpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="5760" height="3840" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101140/63720da59c7e80680e0b78d6jpeg.jpg" alt=""><figcaption> </figcaption></figure>The newly launched L’Italiano is housed in the same space and is owned by some of the same people behind The Vesper House. The establishment itself has gone through several alterations in both décor and food over the years.<a href="https://www.vesperhouse.com/">Vesper Café and Restaurant</a> had carved a niche in Patan's Jhamel restaurant neighbourhood. After its quaint red mud-brick house was damaged in the 2015 earthquake, it reopened almost immediately next door to continue to cater to wine and cheese lovers.Post-pandemic, it has reinvented itself into a fine-dining Italian restaurant with new décor, and with inputs from Cannalire, will specialise in pasta dishes, hand-cooked and in genuine Italian al dente style, so that the pasta has a little bite to it.Ashank SJB Rana of L’Italiano realises the challenge of maintaining the high-quality set by the Italian chef, and plans to bring Cannalire back every year for refresher training for his chefs.Read also: <a href="https://www.nepalitimes.com/banner/exploring-nepals-culinary-diversity/">Exploring Nepal’s culinary diversity</a>, Kedar Sharma and Kiran Sharma“To have good quality food, you don’t always need to import ingredients, you should know how to play with locally sourced produce as well,” says Rana who studied wine management at Hong Kong Polytechnic University. “Our goal is to give our clients an authentic taste of Italy. But this does not mean it will be an uber-sophisticated space."The Vesper House suffered much like any other establishment during the initial days of the pandemic. But as the impact of the Covid-19 declined, people started dining out, its usual expatriate clientele was largely replaced by Nepalis.The Vesper House is one of the biggest importers of fine wine in Nepal, where Merlot and Chardonnay remains popular. Its extensive wine cellar with large collection from Australia, Spain, Germany, Italy and France will continue to be a part of the new establishment. Vesper also has its own wine label appealing to a wide variety of palates, and works with restaurants to advise them on their wine menus.Read more: <a href="https://www.nepalitimes.com/banner/food-of-the-royals/">Food of the royals</a>, Nepali Times

Sonia Awale

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Kathmandu's own 'Eataly'

<figure><img width="1600" height="1200" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131144/636a4f449c7e80680e04fcfbjpeg.jpg" alt=""/><figcaption>PHOTO: HYATT REGENCY</figcaption></figure>When you think of brunch, you think of sizzling bacon, fluffy pancakes, steamy frittatas and even a live omelette station. But at Hyatt Regency’s Weekend Brunch, the meal takes new form with boozy drinks, desserts-galore, barbeque and a buffet that spans multiple continents.Hyatt Regency offers a sanctuary away from the dust, mud and Kathmandu’s monsoon  blues every weekend till October. The Weekend Brunch includes an all-you-can-eat buffet and swimming package for just Rs2,699 with children under 12 getting in for half. <figure><img width="4160" height="3120" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131144/636a4f489c7e80680e04fcfcjpeg.jpg" alt=""><figcaption> </figcaption></figure>The menu changes every week, and offers trans-continental Indian, Nepali, Italian and Mediterranean foods. With made-to-order pasta and shawarma stations, the brunch offers both  penne marinara and shredded rotisserie meat. The buffet also includes sweet and spicy Pav Bhaji, healthy salads, chatamari, and even quiches. With vegetarian and non-vegetarian options, the barbeque has both grilled meats, seafood and veggies. This week, the Weekend Brunch offered Mongolian BBQ. The highlight: grilled chicken with hints of sweetness and spice, mingling with stir-fried noodles and vegetables. Children get as much mini hotdogs, onion rings, french fries and chicken nuggets as they want. So, while parents enjoy cocktails, the offspring can eat, run around, jump in the bouncy castle, swim in any one of the three kiddie pools and even get their faces painted.It is the dessert selection that will leave the parents feeling like kids at the candy store. They please the sweetest of teeth and tempt even the strongest dessert naysayers. From quirky hanging donut boards, berry flambé with ice cream, profiteroles of every flavour, pies of various berries to cakes that satisfy your chocolate dreams, you just have to surrender. On Saturdays, you can both marvel at, and tuck into a glorious flowing chocolate fountain into which both the young and the old can dive in with marshmallows, fruits and more.   <figure><img width="5184" height="3456" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131144/636a4f4b9c7e80680e04fcfdjpeg.jpg" alt=""><figcaption> </figcaption></figure>Beyond the drinks, the food and the pool, the Hyatt has attentive waiters who make sure the plates are immediately cleared for more food. So why laze about at home when you can spend lazy weekend mornings at the Hyatt?Read also: <a href="https://www.nepalitimes.com/business/hyatt-regency-celebrates-annual-cake-mixing-ceremony/">Hyatt Regency celebrates annual cake mixing ceremony</a><a href="https://archive.nepalitimes.com/article/biz-brief/Hyatt-award,4043">Hyatt award</a><a href="http://archive.nepalitimes.com/news.php?id=19670#.XS1jy-szbIU">Rox at Hyatt</a>

Family-friendly Hyatt Brunch

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

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Walking, working, worshipping in Patan