<figure><img width="1400" height="1052" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae3a9c7e80680e077fdfjpeg.jpg" alt=""/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>Although the Nepal budget this year <a href="https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/">cut tax breaks for electric vehicles</a> and did not acknowledge a green path to post-COVID economic recovery, Nepal has an opportunity to tap into next-door China’s rapid strides in green financing.  China was first mover among developing countries to put itself on a low carbon trajectory, using <a href="https://www.bloomberg.com/graphics/2019-green-finance/">green finance</a> as one of the main tools, and it has now become the world’s <a href="https://www.cnbc.com/2017/12/26/climate-change-china-is-the-worlds-biggest-green-bond-issuer.html">largest market</a> for carbon credit, green bond markets and investments in a sustainable economy.Being right next door, Nepal could tap into this potential and use its international goodwill in restructuring the country’s economy towards a green transition.<a href="https://www.nepalitimes.com/latest/nepals-chance-to-green-its-budget/">Nepal’s chance to green its budget</a>, Kaustubh DhitalAfter the 2014 <a href="https://obamawhitehouse.archives.gov/the-press-office/2014/11/11/us-china-joint-announcement-climate-change">climate agreement</a> between President Xi Jinping and President Barack Obama alongside the consequent ratification of the Paris Agreement, China has taken a leadership role in global climate governance. Beijing went against the commonly held ‘Common but Differentiated Responsibility (CBDR) framework’, which protected developing countries from taking costly and ambitious climate action that allowed them to opt for voluntary incentives to reduce greenhouse gas emissions. There has been public pressure on the Chinese government to act on worsening air pollution, and China was shamed at the Copenhagen climate summit in 2009 for rising carbon emissions. Since then, there has been strong political will from President Xi Jinping himself that led to China’s U-turn on environmental and climate policies. China also benefited from technocrats and advocacy coalitions to realise the benefits of a green economy. Nepal can learn from <a href="https://unepinquiry.org/publication/establishing-chinas-green-financial-system/">China’s Green Finance Task Group</a> made up of experts from ministries, financial regulators, academics, banks and other financial institutions, complemented by international experts. It was set up in 2014 to help the central government identify barriers and opportunities in green finance.Its recommendations formed a key part of the 2016 ‘Guidelines for Establishing the Green Financial System’ policy document, which sparked rapid development of green finance in China. It makes sense for Nepal to similarly bring together experts from across the industry to design a green financial system appropriate for Nepal. It is equally important for Nepal to step up its climate and green investment reporting alongside the measurement of environmental benefits and climate risk exposure. Presently, Nepal requires financial institutions (FIs) to report on climate/green finance flows and activities. However, the framework does not require FIs to report on climate risk exposure on the portfolio level. Nor does it make environmental and social policies externally verified through independent reviews. Nepal also does not require FIs to calculate the environmental benefits of their investments and any climate risk exposure assessment. <a href="https://www.nepalitimes.com/banner/build-back-greener/">Build back greener</a>, Bishwa Nath Oli, Maheshwar Dhakal and Rudriksha Rai ParajuliAlong with a systematic update of Nepal’s framework, there is much space for capacity building within the country’s banking sector in climate risk exposure methodologies. This is because banks <a href="http://unepinquiry.org/wp-content/uploads/2016/08/Green_Finance_for_Developing_Countries.pdf">play a key role</a> in ‘assessing risks, originating loans, and underwriting the issuance of equities and debts’.Nepal’s membership of the Sustainable Banking Network gives hope for the future of Nepal’s green finance regime. However, international agencies, financial and academic institutions, banks and lobby groups should also facilitate bilateral channels to allow China to play a key role in knowledge transfer and capacity building in Nepal. For example, the Green Finance Leadership Program led by Tsinghua University, focused on technical assistance on green finance to developing country financial regulators could be a starting point. All these ideas could lay the groundwork for Nepal to continue greening its financial system, acknowledging that it is a long and complex process and requires specialised investment vehicles, fiscal and financial support, financial and legal infrastructure moving forward.  Nepal needs to green its economy for several reasons. The financial system is <a href="https://thediplomat.com/2020/04/greening-the-nepali-financial-sector-strike-while-the-iron-is-hot/">dominated by banks</a> with most of their assets invested in the brown sectors such as agriculture, construction, and real estate, all with environmental hazards and high climate risk. According to the <a href="https://germanwatch.org/sites/germanwatch.org/files/20-2-01e%20Global%20Climate%20Risk%20Index%202020_10.pdf">2020 Global Climate Vulnerability Index</a>, Nepal is ranked as the 9th most vulnerable country in the world to the climate crisis. Nepal’s banks have limited knowledge on environmental risk calculations making their investments highly risky – for example in infrastructure downstream from expanding glacial lakes.<a href="https://www.nepalitimes.com/banner/saving-gokyo-from-itself/">Saving Gokyo from itself</a>, Ang Rita SherpaNepal therefore needs to increase the resilience of its economic and financial system not just by incorporating long-term environmental and climate risks, but also safeguarding current investments through green insurance schemes. Presently, the Nepal government has a <a href="https://www.np.undp.org/content/nepal/en/home/library/environment_energy/climate-change-financing-framework.html">framework</a> to catalyse public financing into climate change in the broader context of economic development and government fiscal planning process. However, greening the financial system would provide much-needed incentives for increased private sector investments in sectors such as renewable energy. This would also diversify the portfolio of banks and reduce risks accordingly. An International Finance Corporation (IFC) <a href="https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/climate+business/resources/final+climate+investment+opportunities+in+south+asia+-+an+ifc+analysis">study</a> shows that this would open up investment potential of $46.1 billion by 2030, which the private sector, including multilateral development banks, local and regional financial institutions can tap into (see chart).  <figure><img width="928" height="870" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae3d9c7e80680e077fe0jpeg.jpg" alt=""><figcaption>Nepal's Climate Investment Potential broken down by Sectors. Source: IFC 2017</figcaption></figure><a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/">Nepal lockdown proves air quality can be improved</a>, Sonia AwaleThe 2015 earthquake followed by the <a href="https://scroll.in/article/802653/is-india-really-behind-nepals-economic-blockade">Indian Blockade</a> highlighted the need for Nepal to reduce its energy dependency. In 2017, Kathmandu was <a href="https://thehimalayantimes.com/kathmandu/kathmandu-listed-as-7th-most-polluted-city-in-world/">listed</a> as the 7th most polluted city in the world, resulting in poor health, and increased <a href="https://www.hindawi.com/journals/jeph/2018/1504591/">socio-economic cost</a>. This means Nepal needs to think long-term, realise its potential in hydropower and renewable energy, and demonstrate the financial benefits of investing in green projects. The Rastra Bank has made significant efforts in this transition. The <a href="https://www.sustainablebankingnetwork.org/country/Nepal.html">Sustainable Banking Network</a> reports that Nepal is making progress in developing its green finance system and has evolved from the ‘Preparation’ to ‘Implementation’ stage in recent years (see chart). The guiding force behind this has been the <a href="https://www.ifc.org/wps/wcm/connect/45b458ae-0866-4e37-9a56-23bd672e221f/NEPAL+NRB+ESRM+Guidelines+May2018.pdf?MOD=AJPERES&amp;CVID=mfwNzvB">adoption</a> of the ‘Guidelines on Environmental and Social Risk Management for Banks and Financial Institutions’ by Nepal Rastra Bank in 2018.  <figure><img width="1275" height="655" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141140/636bae409c7e80680e077fe1jpeg.jpg" alt=""><figcaption>SBN Progression Matrix with Assessment Results for Nepal. Source: Sustainable Banking Network, 2019</figcaption></figure>Although Nepal has made significant progress in integrating environmental and social governance, there is much more left to do on climate and green finance. Nepal’s current framework involves inter-agency collaboration between financial supervisors/regulators, industry associations and financial institutions. However, this does not include environmental agencies and ministries, civil society and the media. Reliance on public financing to adapt to climate change is not enough. Because of its climate vulnerability, Nepal needs to urgently green its financial system and leverage private sector financing. Bilateral support and knowledge transfer between China and Nepal could be a good place to start. <a href="https://www.nepalitimes.com/here-now/the-climate-connection-to-covid-19/">Rastraraj Bhandari </a>is pursuing a Masters in Economics and China Studies at the Yenching Academy of Peking University in Beijing.

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Turning green policies into greenbacks

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b74799c7e80680e062398jpeg.jpg" alt=""/><figcaption>Photo : GOPEN RAI/NT ARCHIVE</figcaption></figure>The Sagarmatha National Sambaad held this week was a dress rehearsal for a bigger international event slated for April, Nepal’s own version of Davos. Fittingly, the theme for the national gathering was ‘Climate Change, Mountains and the Future of Humanity’. The title may be grandiose, but that is because at the rate of warming, mass extinction is an imminent threat. Thresholds agreed on in <a href="https://www.nepalitimes.com/editorial/climate-climax/" target="_blank" rel="noopener">Paris in 2015</a>, and forecasts in last year’s <a href="https://www.nepalitimes.com/banner/a-terrifying-assessment-of-himalayan-melting/" target="_blank" rel="noopener">Himalayan Assessment</a> brought out by <a href="https://www.icimod.org/" target="_blank" rel="noopener">ICIMOD</a> may have to be revised because the rate of polar ice melt predicted for 2050 is already beginning to happen.The concentration of CO2 in the atmosphere has risen from 300 parts per million (ppm) at the start of the Industrial Revolution in 1820 to 415ppm today. Cascade effects like the loss of albedo as Arctic ice melts, the undermining of the West Antarctic Ice Shelf by warm ocean currents, methane from melting permafrost in Siberia means global warming is not linear.Greenhouse gas emissions from the mass burning of fossil fuels in the past 200 years have warmed the atmosphere by 1.3oC. Another 1.5oC increase will happen in the next 30 years. And due to a phenomenon called ‘elevation dependent warming’, the Himalayan mountains are expected to warm 0.3oC faster than the rest of the world.<a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/" target="_blank" rel="noopener">Himalayan ice will be nearly gone during this century</a>. The impact on biodiversity, <a href="https://www.nepalitimes.com/here-now/women-in-climate-hot-spots-face-challenges-adapting/" target="_blank" rel="noopener">weather</a>, stability of slopes, society, economics and ultimately politics, will be catastrophic. There is just not enough time to adapt.Which is why it is important for Nepal to take the lead in drawing global attention to the unique crisis faced by the Himalaya, for this does not just affect us but 1.2 billion people living downstream from Asia’s water towers.While global CO2 cutbacks are put on fast-forward, Nepal and other countries in the region need to quickly come up with ways to reduce risk, and to manage the severe disruptions in natural systems that are sure to gain pace in the coming decades.Even without <a href="https://www.nepalitimes.com/editorial/climate-damage/" target="_blank" rel="noopener">the climate crisis</a>, Nepal faces <a href="https://www.nepalitimes.com/banner/nepal-must-prepare-for-climate-migration/" target="_blank" rel="noopener">enormous environmental challenges</a>. Our rivers are ravaged by sand mining, mountains are mauled by excavators, infrastructure is undercutting gains in forestry. Air pollution in urban areas exceed accepted international standards all year round, waste management is a mess, plastic litters the countryside.The climate emergency is happening in parallel with an unprecedented transformation in all spheres of life. Nepal used to be known as a predominantly rural, agriculture-based society. Not anymore.Agriculture now contributes only 27% of the economy. More than 60% of Nepal’s population lives in urban corridors.But 70% of Nepalis still rely on biomass for cooking and heating, which gives us the advantage of being poor – there is still time to leapfrog directly to a green economy, bypassing fossil energy. <img width="500" height="326" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b747d9c7e80680e062399jpeg.jpg" alt="">The proliferation of <a href="http://archive.nepalitimes.com/news.php?id=19354#.XkKKbdIza70">household biogas plants</a> that has reduced the pressure on forests, but only 3% of the population use it. There is vast untapped potential to extend this, as well as <a href="https://www.nepalitimes.com/banner/this-is-bullshit/">utility-scale biogas plants</a>. Making electricity accessible and affordable will enable more families to switch to electricity for cooking and space heating, reducing our per capita carbon footprint by bringing down LPG imports, as well as improving indoor air quality.It is no use anymore blaming historical emissions by industrialised countries and rising fossil fuel use in neighbouring India and China for melting our mountains. if we do not move towards clean energy ourselves. Cutting air pollution will not just improve our health, but also reduce soot deposition that accelerates glacial melting.There is a tendency in Nepal to blame everything on the climate crisis. Food deficit in the Karnali, outmigration, or floods in the Tarai, pre-date the climate crisis. If we address those structural issues, we as a nation automatically become climate resilient.Nepalis emit only 0.2 tons per capita per year of fossil carbon (Qatar does 40) whatever we do will not make a big dent. Nepal needs to switch to a green economy and renewable energy not to save the planet, but to save our economy from the mounting burden of petroleum imports.We need a government with single-minded focus on creating jobs with renewable energy projects and tourism development In the final analysis, everything rests on improving governance, and setting far-sighted goals and vision to be prepared for this global emergency. <h2>10 years ago this week</h2> An editorial 10 years ago this week delved into people in rural Nepal still dying of easily preventable diseases because of the lack of doctors, hospitals and affordable drugs. Sadly, that editorial could have been written today as the world deals with the coronavirus.Excerpt from <a href="http://archive.nepalitimes.com/issue/489" target="_blank" rel="noopener">Nepali Times #489</a> of 12-18 Feburary 2010:This is still a land where people die of simple, preventable causes. A lung or stomach infection, easily treated by modern medicine, can be fatal in rural Nepal. We know what to do to improve public health. Apart from more work on awareness, the country needs more hospitals and affordable drugs. Half the doctors in Nepal practice inside the country's Ring Road, so more needs to be done to retain them in district hospitals by giving them incentives to do so. <img width="374" height="600" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b747f9c7e80680e06239ajpeg.jpg" alt="">Diseases like TB, malaria, encephalitis, typhoid, diarrhoea and pneumonia can be treated with drugs. But they are not just medical problems. The root causes of sickness in Nepal are societal discrimination, economic disparity and political neglect. These cannot be treated with medicine.

Declaring an emergency

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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Walking, working, worshipping in Patan