<img width="973" height="646" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb309c7e80680e0802adjpeg.jpg" alt=""/>After the 2015 Indian blockade, the Nepal government tried to diversify trade and access to the sea through China. But five years later, inertia and disinterest in Kathmandu have stalled a raft of bilateral agreements signed with the northern neighbour.It has been exactly one year since President Xi Jinping’s state visit to Kathmandu, the first by a Chinese leader to Nepal in 23 years. But there has been no discernible movement on agreements to expedite projects under the Belt Road Initiative (BRI) and previous agreements.In fact, the poor state of the Rasuwagadi-Kathmandu highway today is a glaring example of the inability of the Nepal government to get its act together to improve Nepal’s only functioning highway link to China. The other damning example of Nepal’s foot-dragging is the flagship Trans-Himalayan Multidimensional Connectivity Network that was signed last year during President Xi’s visit. On paper, the project aims to connect Nepal to lucrative trade routes through land, railway, sea port and airway routes. But so far, not even preliminary planning has taken place despite much lip-service paid by politicians in Kathmandu to diversifying Nepal’s trade and transit. In a post-agreement meeting on 13 October 2019, China agreed to conduct on-site evaluation while Nepal took on environmental and legal clearances. Nothing has happened since then. With Covid-19 closing the border with China for the past months, and delays in the arrival of Chinese technicians, there are sure to be more delays. In fact, the pandemic is being used by Nepal’s politicians and bureaucrats as an excuse for their pre-Covid failures to get the agreements off the ground.<a href="https://www.nepalitimes.com/latest/is-china-now-micro-managing-nepal-politics/">Is China now micro-managing Nepal politics?</a>, Dipesh Shahi“Planning and feasibility studies have been delayed as Chinese expertise have not been able to travel to Nepal,” says Gopal Prasad Sigdel, at the Ministry of Physical Infrastructure and Transportation. There was nothing to stop Nepal from using the lockdown period this year to improve the condition of the road link from Kathmandu to Kerung in Tibet, which remains nearly impassable after the monsoon. Little attention has been paid to the crumbling infrastructure needed to support trade with China. Similarly, the north-south Gandaki, Kosi and Karnali corridors have remained mostly confined to paper. The Kodari highway upgrade is also in limbo, and the checkpoint has remained closed after the 2015 earthquake. Prime Minister KP Oli himself assured China the commencement of Kathmandu’s Ring Road Expansion project, which is now delayed by land compensation, tree-cutting permits and electrical cable management issues.  <a href="https://www.nepalitimes.com/latest/the-india-nepal-china-geopolitical-tri-junction/">The India-Nepal-China geopolitics tri-junction</a>, Kunda Dixit <img width="1946" height="872" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb329c7e80680e0802aejpeg.jpg" alt="">Nepal has not gone beyond the planning stage on the protocols signed for the Trade and Transit Treaty that was to come into effect on 1 January 2020, allowing Nepal to use the Tibet railway for export and import with third countries using sea ports on China’s east coast. There has been no movement on that corridor, although China has sent several trains to Xigatse with Nepal-bound goods.Customs barriers and hold-ups still exist while <a href="https://www.nepalitimes.com/latest/new-china-nepal-rail-corridor/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/new-china-nepal-rail-corridor/&amp;source=gmail&amp;ust=1603171390201000&amp;usg=AFQjCNFruOQ5-tToUr6STq7xbASaJGWz5Q">China has already begun cargo</a> services. Proposed infrastructure, such as the Kathmandu-Lumbini-Pokhara railway, remain a distant mirage. The plan to survey a new railway alignment via Tokha to Rasuwagadi also remain stuck.Easing trade and business with China has also been limited to rhetoric. The investment task force of Nepal-China secretaries has only met once. An ambitious plan to open Bank of China branches in Nepal has also failed to materialise. Only Rasuwagadi and Tatopani checkpoints have any trade activity with China, where export is currently nil and imports are sporadic and limited. <a href="https://www.nepalitimes.com/latest/nepal-also-has-boundary-issues-with-china/">Nepal also has boundary issues with China</a>, Surendra PhuyalElsewhere, plans to open a Confucius Institute at Tribhuvan University has stalled over a lack of funds and manpower. Covid-19 has prevented Chinese technicians from surveying Kathmandu Valley’s drinking water supply system. Plans to cooperate on tans-boundary disaster risk management have also remained in the backburder.Signing up to China’s multi-trillion dollar BRI in 2017 was expected to result in improvements in Nepal’s infrastructure, commerce and agriculture. Instead, the lack of progress has exposed glaring weaknesses in Nepal’s state mechanisms.Only 9 out of 36 Nepali projects have been approved under the BRI, and even the projects that got the go-ahead were found to lack proper planning, investment models and review mechanisms. “The Nepali tendency is to sign agreements with no prior research and planning. Only after the signatures are studies done to see if they are feasible, slowing implementation,” Foreign Minister Pradeep Kumar Gyawali admitted candidly to Nepali Times. While there is no shortage of agreements and, there has never been the political will to have them implemented. Plagued by years of interference, corruption and mismanagement, government agencies are simply unable to make progress on bilateral agreements.  <a href="https://www.nepalitimes.com/latest/what-nepal-can-learn-from-china-about-covid-19/">What Nepal can learn from China about COVID-19</a>, Raunab Singh Khatri“India-centric orientation of state mechanisms is holding Nepal back, even as diplomatic circumstances push it towards China, says Rupak Sapkota of the Institute for the Study of Foreign Affairs. “China has always been perceived as a backup or alternative, when things do not work out with India.” The relationship with China becomes relevant only when there is tension with the southern neighbour, as was seen when Nepal sought Chinese assistance after the 2015 Indian blockade and recent border disputes. “Nepal may also be restricted by external pressure, especially as China’s relations with America and India sour,” explains Nepal’s former ambassador to China, Tanka Karki. “But it is Nepal’s own inability to act in its own national interest that is worrying.”The chronic lack of coordination between government agencies has also undermined effort to implement joint projects with China. There are indications that the Chinese side is getting impatient with the lack of movement in Nepal, especially when contrasted with its own rapid progress in development.When he went to China on a state visit in 2015, Prime Minister Oli got the Chinese to agree to sell petroleum products to Nepal, and for construction of a storage facility. He returned, and nothing happened. Then he went to China again in 2018, and made exactly the same agreement. Again, there has been no progress in importing fuel from China and setting up a depot.<a href="https://www.nepalitimes.com/latest/new-china-nepal-rail-corridor/">New China-Nepal rail corridor</a>, Ramesh KumarThe surprising thing is that this lack of progress is happening at a time when the communist parties of the two countries have close fraternal relations, and senior party functionaries from both sides attend ‘training’ sessions. The Chinese Community Party (CCP) has no such close ties with Nepal’s other political parties.While the two ruling Communist parties may appear to be allies, China is not exactly hopeful of a stable and reliable partnership in the long-term, says expert on Chinese affairs Bhaskar Koirala.“Nepal’s lack of investment and attention towards BRI-related infrastructure is undermining the entire gamut of Sino-Nepal relations.” he says. While Nepal may be subject to geopolitical polarisations globally and in the region, there are structural issues within the country that, if not properly addressed, could render any trans-national agreement ineffective. Foreign affairs expert Nischal Nath Pandey says the lack of progress in following up on agreement with China is nothing new. There are similar delays in project implementation with India as well. He says: “The lack of cooperation between Nepal’s ministries makes implementation weak.”

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Nepal-China agreements are stuck

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121112/636b8b6c9c7e80680e06b29ajpeg.jpg" alt="" width="1934" height="1358"/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>Alternative politics (वैकल्पिक राजनीति) in Nepal so far has just been limited to creating new political parties. Each time this happens, a party is newly registered after a merger, it claims to be an ‘alternative’.So, from the <a href="https://archive.nepalitimes.com/article/interview/Advantage,277" target="_blank" rel="noopener">Rastriya Prajatantra Party </a>and the <a href="https://www.nepalitimes.com/from-the-nepali-press/naming-new-provinces/" target="_blank" rel="noopener">Rastriya Janata Party</a> to <a href="https://www.nepalitimes.com/review/dreams-and-nightmares-of-the-nepal-conflict/" target="_blank" rel="noopener">Naya Shakti</a> (now the Samajbadi Party), <a href="https://archive.nepalitimes.com/regular-columns/Between-the-lines/Bibeksheel-Nepali-work-post-earthquake-nepal,490" target="_blank" rel="noopener">Bibeksheel Nepali</a> and the <a href="https://archive.nepalitimes.com/regular-columns/Connecting-dots/Nepali-needs-alternative-politics,966" target="_blank" rel="noopener">Sajha Party</a>, all have sought to be an alternative force.Why have all these alternatives have been unsuccessful in getting off the ground? First, the so-called alternative parties tend to be old wine in new bottles. One sees the same faces, same working style, same ideas. You cannot expect mangoes from a lemon tree. Second, the parties are personality-driven by egocentric figures. Nepal’s patriarchy is in full display in the party leadership. Without accommodating the country’s diversity, including gender, no party in the 21st century can implement  progressive changes.<a href="https://archive.nepalitimes.com/article/editorial/editorial-alternative-current,3860">Alternative current</a>, EditorialThird, the main agenda of the new parties seem to be criticising other parties so as to put themselves in a favourable light. Of course, the existing parties deserve to be critiqued. But the parties claiming to be alternatives have to walk the talk. The general public is not interested in whether the party is left, right or centrist. What counts is how politics can make their lives better. The success of Delhi Chief Minister Arvind Kejriwal and his AAP party shows that performance is more important than ideology.Fourth, they mistake fame for politics. A politician or a political party has to be bold enough to take decisions that might be unpopular now but will have long lasting positive impacts. A popular person does not necessarily make a good politician, nor  must an outstanding politician be seen on TV all the time. It took Imran Khan 22 years to get to lead the government. Maturity comes with experience and overnight success is a myth – this is also true in politics.<a href="https://www.nepalitimes.com/here-now/which-way-nepali-politics-in-2020/">Which way Nepali politics in 2020?</a>, Saindra RaiLast but not least, integrity and accountability are virtues lacking in politicians. This generalisation might be unfair to some individuals, but Nepali citizens have painfully felt the consequences of nepotism, extortion, cronyism, parochialism and patronage practised by the current leaders. To succeed, an alternative force would need to regain the trust of the citizens in politics and politicians.Nepali citizens do want an alternative force. In fact, they have always given a chance to newcomers, be it the <a href="http://archive.nepalitimes.com/news.php?id=5630" target="_blank" rel="noopener">Nepali Congress</a>, <a href="https://www.nepalitimes.com/here-now/one-body-two-heads/" target="_blank" rel="noopener">UML or Maoists</a>. But in order to be a respectable adversary, an alternative force would have to address shortcomings as well as be large and strong in terms of resources.Existing small parties will not be able to break systematic corruption alone in the absence of adequate resources (capital and competent candidates), a wider network and an overarching strategy. Only a Greater Alliance of Alternative Forces could loosen the current parties’ grip on power. Such an alliance would allow the alternative forces to keep their working style (party management) and party positions (ego management) but still collaborate for the greater good of the country.<a href="https://www.nepalitimes.com/here-now/the-business-of-politics-undermines-nepals-democracy/">The business of politics undermines Nepal’s democracy</a>, Ramesh KumarThe common goal must be to eradicate systemic corruption, and the agenda must be to truly be committed to serve the Nepali people. The public must trust that the Alliance will work for the basic needs of the people, such as clean water, electricity, education, health care, infrastructure and a clean environment.Put concretely, the Alliance’s agenda could start with the following activities:<ul><li>Property investigations of the politicians dating back to the year BS 2010</li> 	<li>Universal health care</li> 	<li>Free quality education up to grade 12, and a limited number and type of schools allowed per area</li> 	<li>Decentralised education system with nationwide benchmarks to maintain quality</li> 	<li>Voting rights to all Nepali citizens, including those living outside Nepal</li> 	<li>Zero tolerance for corruption, rigorous checks and balances, including punishment</li> 	<li>Public funding of political parties (with a threshold)</li> 	<li>Prudent use of technology</li> 	<li>Controlled ‘observed’ border with India, only IDs necessary but data is maintained</li> 	<li>Proper recycling and waste management</li> 	<li>Bring the peace process to a proper end, including court hearings for the accused</li> 	<li>Reverse Nepal’s brain drain, policies to attract specialists</li> 	<li>Secure freedom of speech</li></ul>The challenge is not to be taken lightly. If a new Alliance could implement at least some of the above points, it would be a major step forward towards true democracy. However, Nepal’s elites and interest groups would also have to support this Alliance. The <a href="http://Enlisting female health volunteers to fight COVID-19" target="_blank" rel="noopener">coronavirus</a> crisis should have opened the eyes of everyone to understand that our future challenges will know no boundaries and will not differentiate between rich and poor.<a href="https://www.nepalitimes.com/here-now/karmas-karma/">Karma Lama Tamang</a> is currently pursuing a PhD in Political Science at the University of Birmingham. She returned to Nepal from Germany to join the Bibeksheel Nepali Party

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An alternative to alternative politics in Nepal

<figure><img width="1400" height="1011" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a252a9c7e80680e0439b3jpeg.jpg" alt=""/><figcaption>Illustration: DIWAKAR CHETTRI</figcaption></figure>Venezuela is in the news worldwide for US-backed attempts to bring down the Nicolas Maduro government, but it is making headlines in Nepal because of conflicting statements by the ruling party and the government on a country on the other side of the world. NCP co-Chair Pushpa Kamal Dahal issued a harshly-worded statement condemning US ‘imperialism’, and he did it while Prime Minister K P Oli was in Davos trying to make the West forget that Nepal has a Communist government. Asked for a clarification by the US Embassy, the Ministry of Foreign Affairs fell back on more diplomatic language. Read also: <a href="https://www.nepalitimes.com/?p=20774&amp;preview=true" target="_blank" rel="noopener">A yam between 3 boulders</a>, Editorial<a href="https://www.nepalitimes.com/?p=20802&amp;preview=true" target="_blank" rel="noopener">Nepal now has to balance not just India and China, but also the West</a>, Bhairaja Pandey<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=20801&amp;preview=true" target="_blank" rel="noopener">Eminently beneficial for India and Nepal</a>, Ajit BaralThe Venezuela controversy exposed a fault-line between ex-UML and ex-Maoist elements within the NCP. It also brought into sharp focus Nepal’s need now to balance not just its northern and southern neighbours, but also the West. The pre-1990 bipolar world has turned into a multi-polar Cold War, and analysts say Nepal needs to be more careful about not being dragged into any of the alliances. Nepal’s location makes this new geopolitics much more sensitive than ever before. China is a rising global power, India is aspiring to be the same, and America is trying to rope New Delhi into its geostrategic alliance. Nepal has to take advantage of the economic powerhouses to the north and south by hitching its wagons to the Indian and Chinese locomotives, and try to get them to pull it in the same direction. For this it needs a new coherent foreign policy strategy that does not allow outside powers to back proxies in Kathmandu.

Hitching our wagon

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

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

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.

Flouting rules caused Saurya tragedy

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