https://www.youtube.com/watch?v=PVs9hoIwFUc&amp;feature=youtu.beAt a donor conference after the 2015 earthquake, more than $4 billion was pledged to Nepal by the international community, multilateral banks and aid agencies. Germany was prompt in signing a reconstruction agreement with the Finance Ministry in December 2015, for €30 million.Three years and three agreements later, a part of the negotiations suddenly broke down last month, as the German government decided to withdraw from a project to restore monuments, schools and streets in Bhaktapur <a href="http://archive.nepalitimes.com/page/tourists-trickle-back-to-Bhaktapur" target="_blank" rel="noopener">destroyed by the earthquake</a>. This was surprising since Germany, <a href="http://archive.nepalitimes.com/news.php?id=19496#.WxElhu6FPIV" target="_blank" rel="noopener">involved in Bhaktapur’s restoration since 1970s,</a> had allocated a third of its total outlay for earthquake reconstruction to Bhaktapur.At a time when only 75% of the aid pledged in 2015 has actually materialised, and only 16% of the money has been disbursed, the cancellation of a €10million restoration initiative for Bhaktapur was a big loss for the country. Nepali Times has tried to piece together what went wrong.This was the first time that the German Embassy in Kathmandu contracted German Development bank (KfW) as an implementing partner in heritage conservation. The bank has been active in Nepal’s hydropower, health and sustainable development projects. Being a bank, KfW had different and stricter operating procedures than the German aid agency GIZ and other non-profits.Previously, <a href="http://archive.nepalitimes.com/news.php?id=19495#.WxElh-6FPIW" target="_blank" rel="noopener">Bhaktapur had rebuilt monuments</a> like the historic 55 Window Palace with local means and expertise. But KfW’s rules required international bidding, and its inability to alter this procedure as demanded by fiercely independent-minded Bhaktapur leadership after last year’s local elections, led to a deadlock.“<a href="https://www.nepalitimes.com/here-now/bhaktapur-shows-the-way-by-rebuilding-itself/" target="_blank" rel="noopener">Locally-led construction</a> gives better quality at lower cost,” says Mayor Sunil Prajapati, pointing out that Bhaktapur is already working with local user committees to rebuild damaged monuments, and 27 have been restored by the municipality and the Department of Archaeology.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111144/6368e2299c7e80680e033313jpeg.jpg" alt="" width="4000" height="2707"/><figcaption>Vatsala mandir was damaged in 1934 and again in 2015 earthquake. Rejecting modern materials even in such a fragile temple, Bhaktapur is adding traditional style wooden pillars to this formerly stone structure. Pics: Monika Deupala</figcaption></figure>However, these are smaller monuments with budgets up to Rs15 million each, and larger complexes like the Pujari Math, Phasi Dega, National Art Museum (formerly a Rana palace) still await restoration.Piecing together accounts of the negotiations from both sides, what appears to have led to the deadlock was a clash of cultures. The Germans, used to lack of transparency in other projects in Nepal, wanted to ensure full compliance with the rules of its banks on the tendering process.Bhaktapur’s leaders, on the other hand, didn’t want to be told what to do when they felt perfectly capable of carrying out their own restoration.The main point of dispute appears to have been KfW’s insistence that the reconstruction contracts be open to a global tender process, international consultants, and the possible use of modern construction materials as has been done in previous German restoration here, including the octagonal Chasin Dega.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111144/6368e22d9c7e80680e033314jpeg.jpg" alt="" width="640" height="761"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111144/6368e2319c7e80680e033315jpeg.jpg" alt="" width="640" height="427">Bhaktapur has finished rebuilding 27 monuments, including the gate to Bhaktapur Durbar Square. Bhaktapur has always aspired for independence, not just from foreign donors, but Kathmandu. Its political landscape has been dominated by the Nepal Worker’s Peasants Party (NWPP) under <a href="http://archive.nepalitimes.com/article/nation/Bhaktapur-dear-leader,3010" target="_blank" rel="noopener">Narayan Man Bijukche</a> who is not shy about his open admiration of the North Korean ideology of self-reliance called ‘Juche Idea’.Mayor Prajapati is from the NMKP and won a landslide in last year’s municipal elections. In an interview with Nepali Times last week he sounded defiant: “We will not tolerate foreign interference in the name of aid. We will not let our sovereignty be compromised.” (See full interview online.)Bijukchhe has now retired from politics, but is still the driving force behind the party. He has urged the government to take reconstruction upon itself and not depend on foreign aid. In the absence of elected officials before last year’s local elections, NWPP members had been present at negotiations with KfW at every stage. The party is confident it has public opinion in Bhaktapur on its side in the dispute.German Ambassador to Nepal, Roland Schäfer, admits that after two years of negotiations, "One had to come to the conclusion that KfW had to defend modalities for a reconstruction grant because of its general mandate, not related to Bhaktapur, and that this could not be adapted to where Bhaktapur's leadership saw the city moving between 2015 and 2017."  (Full interview below.)<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111144/6368e2359c7e80680e033316jpeg.jpg" alt="" width="5472" height="3648"><figcaption> </figcaption></figure>The city’s pride and self-reliance are all well and good, but we asked Mayor Prajapati if a compromise could not have been reached, especially because Bhaktapur stood to lose so much promised aid at a time when cash crunch is the main reason for delayed reconstruction. Prajapati was adamant: “Without foreign aid, it may take us longer to rebuild these monuments, but we have now decided that it is the best way.”Some experts are not convinced that losing the KfW aid was good for Bhaktapur. “That amount would have been enough to reconstruct all of Bhaktapur’s monuments, and more,” said Rabindra Puri, Bhaktapur’s noted heritage conservationist. “It is a great loss for Bhaktapur that the two parties could not come to an agreement.”For others, this is a lesson in how not to negotiate in Nepal’s new federal state structure, where local elected leaders are much more vocal about what they want. Bhaktapur’s politicians may have blocked the agreement when they found out architects and engineers at Khwopa College would lose out in the bidding system. Meanwhile, KfW could have predicted the fiercely-independent spirit of Bhaktapur’s leaders, and fielded locals who spoke Newari for the negotiations.With inputs from Monika Deupala in Bhaktapur<h2>"Sovereignty is foremost"</h2>Bhaktapur mayor Sunil Prajapati explains why independence is so important to Bhaktapur, and how it plans to rebuild monuments on its own.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111144/6368e2399c7e80680e033317jpeg.jpg" alt="" width="1840" height="1564">Nepali Times: How is the reconstruction of monuments in Bhaktapur going?The reconstruction is forging ahead in good speed, according to the economic means of the municipality. We are building monuments like pati, pauwa, sattal, temples and ponds of each ward though user committees. When we work through user committees, people feel ownership of the monuments, and they also contribute voluntary labor. We get more value out of it than the money we spend on it. That is why we choose to work with user committees. 27 out of 35 infrastructures, 27 out of 47 monuments, and 24 out of 28 roads that were approved for reconstruction have been completed, the rest are under construction.The municipality is using its own funds and collecting donations from local residents, at a time when the German government has withdrawn its grant of 10 million Euro. Is that a loss for Bhaktapur?Not everything is about money. Our independence is important, and we should never forget our sovereignty. Though we are prepared to tolerate everything, we should not let our independence, sovereignty, and self respect be compromised. We say this to everyone. After the 2015 earthquake, the German government had signed an agreement with Nepal government, to give €10 million to Bhaktapur to rebuild its monuments. There were many points of the agreement that we did not agree with.What was the disagreement about?For example, the audits would have to be done according to German regulations. If there are any disputes, they would have to be taken t German courts. Many monuments here are very sensitive, but the agreement required an international bidding process to restore them. We said that we have skilled experts right in Nepal who can complete the restoration, and the people here are willing to help. We have repaired Nyatapola, 55 window, Bhairabnath on our own. We want to go through user committees. But maybe they don't know what are user committees, they just did not agree to it. Plus, 20 percent of the cost would be ours, so we are already putting so much money in it ourselves.In Bhaktapur we have two engineering colleges, and many people who are very skilled in traditional craft and techniques. We said we will do it on our own, and will accept your help when we need. Bu they said we would have to do exactly as they said: use materials and techniques they specified. They would call for bidding, they would appoint the technicians, and they would specify the building materials. If that happened, we would look like mere eyewitnesses.We don't always need to take from the world, we can also give to the world. The 315-year old Nyatapola temple, the valley's tallest temple, is an example. It was not destroyed even in 1934, nor in 2015. Our technologies last 315 years! We are very rich in technology.Does that mean that the local government here is powerful?The law has made us powerful. We adhere to the law. The constitution has given us the right to make rules, working procedures, etc. We have prepared our own regulations regarding education, cooperatives, and sports. We make rules convenient to us in a way that they do not clash with federal laws.In Bhaktapur we don't easily give permission to anyone to work in the town. We take our own decisions.  That is what independence means. If we do as foreigners say, that is not independence.How do you plan to take the restoration forward, since money is still a problem?We have prepared our own designs for restorations, with a committee of 9 architects, 2 civil engineers and 2 senior advisors. Yes, we have some economic needs, and we have thanked those who come to our aid. But we do not agree to their conditions. In fact we agreed that the operating procedures of KfW are not appropriate for this project. We should not forget our identity. We also want to convey this to all Nepalis. If you have self respect, you will not bow to money or power, and you should not do so either. We should always think about what interests the other party has. It is wrong to be a slave for money.We are so independent, and so were our ancestors. If we cannot even restore the monuments that our ancestors left for us, how can we claim to be citizens of the 21st century? Though our ancestors were not as educated as us, they were advanced in arts and crafts. And we want to do justice to their art by restoring them to their glory. If we work with this spirit, then it probably won't be difficult to bring change to the country.<h2>“History with a capital H”</h2>German Ambassador Roland Schäfer talks to Nepali Times about Germany’s ties with Bhaktapur, and the latest controversy over a restoration project.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111144/6368e23d9c7e80680e033318jpeg.jpg" alt="" width="1512" height="1430">Nepali Times: Why does Bhaktapur hold such fascination for you?  As a young student, I trained as a historian. We have a shared history with Bhaktapur, and I often talk to those who remember. I was fascinated to see that the relationship between Bhaktapur and Germany is History with a capital H. This relationship is interwoven with Nepal's decade-long struggle for democracy and local autonomy, and it changed both Bhaktapur and Germany.It changed Germany. German development cooperation came in the late seventies to reconstruct or preserve some of the world heritage treasures Bhaktapur harbours. What many people don't know: the encounter with Nepali politics in Bhaktapur had a deep influence on how the Germans thought and acted. The German development cooperation changed their original ideas, the methods, and even the staff.I also believe that it also changed Bhaktapur. The city’s political leadership adapted to those "foreigners" who stubbornly wanted to help, and they kept this relationship alive over the decades. Over the decades, Bhaktapur's success was a shared success story.Today, if you walk through Bhaktapur, the people of the city point not just to the buildings which still stand or function because of this relationship. They also tell you the stories about those who spent parts of their lives talking, negotiation, building and restoring in the city, and they reminisce that also the water supply ion the city was improved, architects were trained and schools flourished, because of this relationship.I believe our relationship is strong because it was able to incorporate big political change. Change over decades is the most important ingredient in the success story which German development cooperation shares with Bhaktapur.I am therefore confident that this relationship is there to last, and that it will be able to adapt again. To new capacities in the city, new challenges and to citizens which enjoy more rights than ever before.  I think we will again be able to see the city as a whole. Not just the havoc which the 2015 earthquake wrought over the city, but a living political entity with manifold and amazing capacities.Why did the German government pull out of the agreement to restore Bhaktapur monuments? "Pulled out" does not describe what happened, if you allow me to say sp. KfW cannot just "pull out". KfW, the German Development Bank, is an instrument of German Development Cooperation, a very valuable one, but it does not take those kind of decisions.What happened is that after two years of negotiations, one had to come to the conclusion that KfW had to defend modalities for a reconstruction grant because of its general mandate (not related to Bhaktapur), and that this could not be adapted to where Bhaktapur's leadership saw the city moving between 2015 and 2017.The conclusion was reached by the German Government and communicated to the Nepali Government before I reached Nepal. The recently elected mayor and myself, the new German ambassador, we have now the task to take stock and do what predecessors have done in the past: adapt to the realities and keep the relationship moving. For that is certainly what we want to do.I do not wish to discuss whether this disappointment could have avoided, because I was not there when all this happened. I prefer to think that those involved did actually try their best and that they still wish to help those who have to pick up the pieces where they lie and move on. If one modality of cooperation does not work, for a short period of time, that is not the end of the world, is it?Will the budget set aside for Bhaktapur be used elsewhere? By the end of the year, I expect the Nepal and German governments to take decisions on the current earthquake recovery funds in their entirety -- that is an immediate administrative necessity. That has to be awaited. But we have been transparent with the leadership of Bhaktapur during the preparation of this decision.What is at stake now is to listen very carefully to the political needs which Bhaktapur's leadership seen in a new, federal environment. We need to do this in a really holistic way. My hunch is that it will be very interesting to listen to Bhaktapur, not just for the Germans, but for many mayors and reconstruction experts in Nepal. That is what we think is a way forward.Bhaktapur, today, is not the Bhaktapur of the 1970s. But also the Government of Nepal is not the Government of that period of a king's rule. In this environment, Bhaktapur must be listened to, and I call on Bhaktapur to talk, teach, demonstrate and help analyse all things related to municipal development. How does it relate to tourism, local economy, religious heritage, infrastructure and buildings? That is at stake for so many more cities in Nepal, and we Germans want to use our contacts in order to be able to join the learning process.If in this process, good ideas emerge and people come together who have the courage to make them happen, the Germans will be part of it. I am sure we will find the best modality for cooperation in this new context. KfW was a possible instrument, but not the only one.Readers write<a id="js_blp" dir="ltr" href="https://www.facebook.com/devendra.basnet?fref=ufi&amp;rc=p" target="_self" data-ft="{" data-hovercard="/ajax/hovercard/hovercard.php?id=100000012551306&amp;extragetparams=%7B%22is_public%22%3Atrue%2C%22hc_location%22%3A%22ufi_admin%22%7D" aria-describedby="js_blo" aria-owns="">Devendra Basnet</a> As the saying goes 'there's no free lunch.' Specially when it comes to the world of foreign aid.<a href="https://twitter.com/KtmAktivist" data-user-id="2449702855">Amit Aryal‏ </a>This is inspiring on so many levels. Thank you for being a visionary leader! This is not only a learning moment for our cultural preservation but for Finance Ministers and Nepali bureaucrats that are often too eager to accept foreign assistance without realising its pitfalls.

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Clash of cultures in Bhaktapur

Sixty years ago Nepal established diplomatic relations with Germany when both countries were emerging from dark and difficult times, and both were trying to establish a new identity. They wanted to open up to the world and define a new place for themselves within it.Look at Nepal today: it has overcome decades of profiteering by a rent seeking elite, it has overcome a decade of civil strife, it has given itself a new, democratic, republican and federal constitution, and the Nepali people have validated all this by voting massively last year, installing the most <a href="http://archive.nepalitimes.com/article/editorial/government-to-governance-editorial,4200" target="_blank" rel="noopener">powerful government</a> in Nepal’s modern history.This government, carried by a united party, knows it has to fulfill the promises which got it elected. It has the power and the wisdom to reconcile the country with its past and help it look boldly to the future. Building the future on the foundation of a well understood past shared by all will be a process.It cannot be achieved by the stroke of a pen or the handing out of some money from state coffers. But if this process gets to a credible start now in the coming two to five years, it will be empowering Nepali women and men like never before in history.From many conversations in the last nine months here, I am confident to say: It seems to feel good to be a Nepali today. And I can tell you myself: it feels good to be a German today.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d6cb9c7e80680e0314a6jpeg.jpg" alt="" width="1372" height="1832"/><figcaption>Foreign Minister Pradeep Gyawali and German Ambassador Roland Schafer unveil the logo for the 60th anniversary of Nepali-German diplomatic relations on Monday. Pic: German Embassy</figcaption></figure>We have been holding joint consultations on the next two years cycle of development cooperation between Germany and Nepal. Germany will continue to engage in the health and energy sectors, and will continue to work on enabling Nepali small and medium sized enterprises for a competitive world market.Our cooperation builds on decades of common work. <a href="http://archive.nepalitimes.com/news.php?id=19496#.Wwb1vzSFN0x" target="_blank" rel="noopener">Bhaktapur</a> may have the longest story to tell about successes in our cooperation, about trust built, even after initial failures were overcome. This learning process never ends. I am happy to further engage with this proud, able city and its citizens on a cooperation that makes best use of what Bhaktapur can give to the nation and of what a modern Germany can contribute to this long standing partnership.Not all is government to government cooperation. We want to make Nepal a place for German and European industry to invest in. Employment will be created durably and reliably in this competitive world through private sector engagement.I thank Nepal for extending support to Germany in the upcoming election to non-permanent membership of the United Nations. We count on the support, so that we can work for multilateral peace-making, something to which Nepal’s army is contributing so much.And look at Germany today. The country is reunited, its 80 million people are part of a European Union of 500 million citizens who freely trade, travel, work and transfer assets among themselves. The European Union ensures the rule of law for all and organizes the outside protection of the Union territory.Germany has established its own particular brand of foreign and security policy – not so much by talking, but by how we behaved. We have taken on responsibility such as intervening militarily against dictatorship and ethnic cleansing in the Balkans, offering the parties to the conflict the option to become members of the European Union. But we refused to participate in the invasion of Iraq at the beginning of the century. The most important point for us today: the European Union as a whole is establishing its own Foreign and Security policy of which Germany is fully a part.Excerpt of a speech by Roland Schäfer, Ambassador of Germany to Nepal, on 20 May to mark the 60th anniversary of Nepal-Germany diplomatic relations.Read also: <a href="http://archive.nepalitimes.com/regular-columns/Comment/Memory-and-forgiveness-internation-holocaust-day,1109" target="_blank" rel="noopener">Memory and forgiveness</a>, Roland Schäfer

Six decades of cooperation

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

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Flouting rules caused Saurya tragedy

Walking, working, worshipping in Patan