Traditional donors have sharply scaled back their aid commitments to developing countries over the past year. Some, like the United States, have virtually eliminated their aid programs. According to the Organisation for Economic Co-operation and Development (OECD), official development assistance (ODA) from member countries <a href="https://www.oecd.org/en/about/news/press-releases/2025/04/official-development-assistance-2024-figures.html" target="_blank">declined by 7.1%</a> in 2024, its first annual drop in six years. This trend was not limited to a few major donors. Of the 33 members of the OECD’s Development Assistance Committee (DAC), 22 slashed their aid budgets, and only four countries met the United Nations’ target of allocating 0.7% of gross national income to ODA. The outlook for the coming year offers little hope for improvement, as major DAC donors have announced additional cuts. Most notably, US President Donald Trump’s administration has suspended most foreign aid and dismantled the Agency for International Development (USAID), which dispersed most US government aid dollars. Meanwhile, the United Kingdom plans to <a href="https://www.bbc.com/news/articles/clyrkkv4gd7o" target="_blank">reduce aid spending</a> from 0.5% of GNI to 0.3% by 2027. Similar retrenchment across Europe and North America is reshaping international assistance, disrupting humanitarian and climate-related programs, and creating financing gaps in critical sectors such as health, education, and clean energy. In our 2017 book <a href="https://www.cambridge.org/core/books/going-beyond-aid/B48F59C6D8D2790D403A1A0C44B37612" target="_blank">Going Beyond Aid</a>, we urged developing-country governments to reduce their dependence on foreign aid, not only because it was becoming an unreliable source of funding, but also because other, better ways of financing development were becoming more available. That message is more urgent than ever. As reliance on aid becomes untenable, the international community must mobilise a broader array of financing sources to advance green and sustainable growth. This includes national development banks, industrial investment funds, sovereign wealth funds, and institutional investment in public markets, as well as innovative mechanisms such as debt swaps and public-private partnerships (PPPs). These tools can unlock domestic resources, attract long-term investors, and create synergies between public goals and private capital. Equity investment offers a promising avenue for engaging non-traditional development partners while reducing developing countries’ dependence on debt. Government investment funds, public and private financial institutions, and other private actors can participate by taking equity stakes in public enterprises, financing infrastructure projects, or joining PPPs. Such participation not only alleviates debt burdens but also improves the performance and management of public assets. As government-funded, mission-driven institutions, public development banks (PDBs) have the potential to provide patient capital for green and sustainable investment in emerging and developing economies (EMDEs). Building on the <a href="http://www.dfidatabase.pku.edu.cn/index.htm" target="_blank">pioneering database</a> of public development and financial institutions created by the Institute of New Structural Economics at Peking University, future research can identify effective ways to harness these institutions to fuel low-carbon growth. Responding to growing demand from the economies of the Global South, development partners have increasingly adopted an “entire value chain” approach to the green transition in recent years. This strategy facilitates transfers of low-carbon technologies, diffusion of digital innovations (including trade in services), and industrial modernisation, enabling countries included in China’s Belt and Road Initiative (BRI) to accelerate their shift toward sustainable development. Empirical research supports this approach. An analysis covering 139 countries <a href="https://ember-energy.org/latest-insights/the-first-evidence-of-a-take-off-in-solar-in-africa/" target="_blank">finds</a> that, following policy directives to incorporate green and low-carbon principles into the BRI, carbon intensity (CO₂ emissions per unit of GDP) among participating countries declined significantly between 2013 and 2022. These findings are consistent with another <a href="https://ember-energy.org/latest-insights/the-first-evidence-of-a-take-off-in-solar-in-africa/" target="_blank">recent study</a> showing how China’s solar-energy expansion has helped transform Africa’s power sector. Investment in infrastructure and industrial development can also generate positive spillover effects. Evidence from Sub-Saharan Africa <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/jors.70023" target="_blank">shows</a> that the presence of at least one Chinese-financed infrastructure project in a second-order administrative region (comparable to a municipality) is associated with a 5% increase in nighttime luminosity – a widely used proxy for economic activity. Neighbouring regions experienced a 10-15% rise in luminosity, indicating that the benefits of such projects extend well beyond the immediate investment site.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251104131124_1a11d248a89b0785bc7d7f1d9f721e7e7a2563cbd579c3c672a0900220c19171.jpg" data-media-id="editor_7" data-image-id="20251104131124_1a11d248a89b0785bc7d7f1d9f721e7e7a2563cbd579c3c672a0900220c19171" data-rendition-name="original" width="720" height="405" loading="lazy" alt="development aid and China"></figure>  These outcomes underscore the critical role of infrastructure investment, particularly in energy and transportation projects. By improving electricity access, affordability, and connectivity, they reduce energy poverty, bolster public services, and stimulate economic activity in underserved areas. To meet the evolving challenges of development finance, both traditional and non-traditional donors and creditors should move beyond aid and adopt multidimensional strategies that combine trade, investment, infrastructure, green technology, and digital connectivity, including fintech solutions, to support EMDEs. Importantly, such collaborations should be viewed as a mutual learning process in which partners assume complementary roles and shared responsibilities. To be sure, there have been missteps along the way. China’s financing of coal-fired power plants before 2021, for example, had slowed reduction in CO₂ emissions. But these outcomes, once recognised as policy errors, can help strengthen accountability and foster self-correcting mechanisms within the international development ecosystem. Through ongoing learning and adaptation, global partners can build a more resilient, inclusive, and sustainable framework for development finance. © <a href="https://www.project-syndicate.org/">Project Syndicate</a> Justin Yifu Lin, a former World Bank chief economist and Senior VP, is the honorary dean of the National School of Development and director of the Institute of New Structural Economics at Peking University. Yan Wang is Senior Academic Researcher at Boston University’s Global Development Policy Center.

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Development finance must shift away from aid

Although US President Donald Trump’s protectionist trade policies dominate news headlines, they are far from the only forces shaping global production. New investment patterns have been reshaping the global economic landscape since well before Trump’s tariffs. 
Nowhere is this more evident than in flows of foreign direct investment. According to the latest <a href="https://unctad.org/publication/world-investment-report-2025" target="_blank">World Investment Report</a> from United Nations Trade and Development (UNCTAD), FDI inflows to Europe, South America, and much of Asia declined in 2024. By contrast, FDI flows to Africa surged by 75%, to $97 billion, while those to Southeast Asia increased by 10%, to $225 billion. 
Behind these trends lies a broader restructuring of multinational supply chains, which are steadily shifting toward Southeast Asia, Eastern Europe, and Central America. Consequently, FDI patterns are also changing: while the United States, Japan, and China remain the largest outward investors, the Middle East has emerged as a major source of FDI. 
Flush with oil revenue, the Gulf Cooperation Council (GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – invested <a href="https://studies.aljazeera.net/en/analyses/gccs-strategic-footprint-gulf-investment-emerging-power-bloc-africa" target="_blank">roughly $113 billion</a> in Africa in 2022 and 2023, dramatically expanding their economic footprint on the continent. Most of this capital has gone into logistics and infrastructure projects such as ports, airports, and transportation networks, as well as oil and gas.
The center of gravity, however, is rapidly shifting toward China, especially when it comes to green investment. A <a href="https://www.netzeropolicylab.com/china-green-leap" target="_blank">new report</a> from the Net Zero Industrial Policy Lab highlights the scope of Chinese outward FDI, showing how China’s push into clean energy is boosting its economic influence. 
Drawing on a database of 461 China-backed greentech manufacturing projects announced between 2011 and mid-2025, the report finds that Chinese firms have invested more than $220 billion in 387 projects across 54 countries since 2022. These include solar and wind power facilities, large-scale battery plants, new-energy vehicles, charging infrastructure, and even early-stage green-hydrogen startups. 
According to the report, Chinese investments are largely driven by firms’ search for market access and reliable supplies of raw materials. While ASEAN countries remain the leading destination for such projects, the Middle East and North Africa’s share rose sharply to over 20% in 2024; Latin America and Central Asia also attracted a significant share of Chinese FDI. 
Importantly, this wave of Chinese FDI is not led by state-owned enterprises but by private companies that have relied neither on large loans from state-owned banks nor on subsidies from host governments. As one of the study’s authors <a href="https://www.phenomenalworld.org/interviews/the-belt-and-road-2-0/" target="_blank">observed</a>, “Chinese government officials themselves may not be aware of the full range and aggregated total of these private-sector green investments overseas.” 
Taken together, these developments signal a new phase in China’s global economic expansion. Unlike President Xi Jinping’s state-led Belt and Road Initiative, profit-oriented investments reflect both supply-side pressures – such as industrial overcapacity within China – and demand-side dynamics, with recipient countries increasingly tying market access to value-added processing rather than natural-resource extraction.
Given that the full impact of these projects will become clear only years from now, many observers – particularly in advanced economies – could be caught off guard. While Chinese exports and extractive investments have often been viewed as threats to industrialization in recipient countries, the current wave of manufacturing FDI has the potential to strengthen domestic production, create jobs, and promote broader development goals. Even limited technology transfers could prove transformative, accelerating the clean-energy transition and reshaping global trade. 
To be sure, China is not in the business of philanthropy. FDI – whether from the West, China, or the Gulf – is profit-driven, and sometimes motivated by rent-seeking. It can deliver significant benefits, but it also carries risks: environmental degradation, displacement, labor exploitation, foreign-exchange losses through profit repatriation, and costly technical fees or royalties. And when expected linkages and spillovers fail to materialize, the benefits remain highly localized. 
As always, much depends on the policies adopted by host countries. Encouragingly, some export-oriented developing economies appear to have learned from Indonesia, where the government compelled Chinese firms to generate more domestic value-added production (particularly in nickel processing) as a condition for investment. 
Inspired by this, several governments are seeking to impose similar requirements on foreign investors, with greater emphasis on local production and knowledge transfer. For example, in <a href="https://www.china-briefing.com/news/china-brazil-economic-ties-trade-investment-and-opportunities/" target="_blank">Brazil</a>, the consumer-electronics company Lenovo has established a joint research and development department to enhance its local digital intelligent manufacturing capabilities. 
That said, even Indonesia’s relative success has not translated into higher real wages and better working conditions. Welcoming FDI is not enough; host countries also need stronger domestic regulation, public intervention, and regional cooperation to ensure that the gains are broadly shared. 
A similar demand was at the heart of the 1955 Bandung Conference, hosted by Indonesia, which called for a fairer global economic order and greater cooperation among Asian and African countries. Notably, the resolution is <a href="https://eng.yidaiyilu.gov.cn/p/0R9VRTB6.html" target="_blank">still cited</a> on Chinese government websites. 
But fulfilling the Bandung Conference’s call for a fairer international economic order requires more than profit-driven investment. It requires governments that are willing to work together to develop markets that serve societies, not just shareholders. © <a href="https://www.project-syndicate.org/">Project Syndicate</a>
Jayati Ghosh, Professor of Economics at the University of Massachusetts Amherst, is a member of the Club of Rome’s Transformational Economics Commission and Co-Chair of the Independent Commission for the Reform of International Corporate Taxation.

The Changing Face of Foreign Direct Investment

Fresh off the Sagarmatha Sambaad international climate conference last week where Nepal committed to lofty goals for electric mobility, one would think the Finance Ministry would have taken a big leap forward to promote electric public transport.
But the bright side is that Finance Minister Bishnu Paudel did not take a step back and kept the status quo in excise and import taxes for electric vehicles. He did not build on the gains to push more aggressively on public transport.
Past tax cuts on electric cars boosted battery-powered vehicles, and this year Nepal was only behind Norway for the highest percentage of new electric car sales. More than 75% of vehicles sold in Nepal last year were electric — with 1,400 imported in just the past month because of worries that the budget would raise taxes.
Tax rebates, monsoon power surplus, time of day metering, and improved range of EVs have contributed to the phenomenal increase in electric mobility. Even though car owners make up less than 3% of the population, there has also been a massive increase in electric vans on intercity public transport routes. And regardless of who owns EVs, conversion helps reduce Nepal’s petroleum import bill — which makes up 25% of all imports. 
Taxing outsized luxury electric SUVs would have been reasonable, but much more urgent are tax subsidies on big battery-powered buses. 
Replacing diesel buses with an efficient electric public transport network would also lessen air pollution and reduce road congestion. Furthermore, the life cycle cost of electric variants is much lower than that of those with internal combustion engines (ICE), and will be even more affordable as battery technology evolves.
When Nepal Rastra Bank increased the ‘Loan-to-Value (LTV) Ratio’ for electric vehicle financing to 40%, up from 20% in March, it dampened sales of public electric vehicles — showing extreme price sensitivity of buyers.
The constant flip-flopping on EV taxes over the years because of the need to compensate for revenue shortfalls has confused consumers. The Finance Ministry often takes an easy short-term fix to boost government income by increasing the tax on EVs, but does not look at the huge medium-term gain from reduced petroleum imports. 
During the monsoon, battery-powered cars are using electricity that would have been wasted. The benefits to public health and national productivity from reduced street-level emissions with more EVs is incalculable. 
More importantly, the discourse on sustainable transport in Nepal is limited to fiscal taxes, when it should be on regulating transportation management. 
Nepal imports most of its vehicles from China and India, and both countries will soon be switching completely to electric 4- and 2-wheelers. We have no choice but to transition accordingly, and have the charging infrastructure and transport regulation in place. Furthermore, Nepal might soon be in a position where it could ban all private petrol cars and switch to only battery cars and tax them at the current rate on ICE vehicles.
For now, the government must urgently come up with a long-term financing and subsidy mechanism for electric buses, and it could start by using the Rs3 billion in ‘pollution tax’ that it collects every year from diesel and petrol sales.
Our National Transport Policy dates back to 2001, and it prioritises road infrastructure rather than transport management.
The former mayor of Bogata Enrique Peñalosa who implemented a successful bus rapid transit system for his city once said: “An advanced city is not a place where the poor move about in cars, rather it’s where even the rich use public transportation.” We could paraphrase that to ‘electric public transportation’.
Public transport is a public service, and the onus lies on the government to ensure reliable and efficient electric buses. At present public transport is almost entirely provided by private companies with the government only setting fares.
True to its name, the Department of Roads is all about building roads, and even that it does so poorly that 2,500 Nepalis are killed on dangerous highways every year. The Department of Transport Management keeps itself busy only issuing driving licenses, and is a hotbed of corruption with people waiting years for their licenses.
This year’s budget could have turned things around. The coalition government’s main preoccupation seems to be staying on in power and countering pro-monarchy rallies fuelled by discontent when it should have focused on improving public services. 
Sonia Awale

Nepal needs a new green energy policy

A year-and-a-half after the <a href="https://nepalitimes.com/banner/can-nepal-go-from-hydro-to-hydrogen">Nepal Green Hydrogen Summit</a>, Kathmandu University (KU) last week successfully tested a hydrogen fuel cell car for the first time in Nepal.&nbsp; KU’s Green Hydrogen Lab used 10kg of water and 45 units of electricity costing $5 to produce 1kg of hydrogen to give a Hyundai SUV a range of 100km. Using petrol to drive the same distance would cost Rs1,400 at the gas station.&nbsp; At present, running an EV is even cheaper, because a battery-powered car needs Rs106 of electricity to go 100km.&nbsp; The technology is not new—industries and factories have been using hydrogen for over 100 years to manufacture chemicals and fertilisers, refine oil, and process food, among others. But earlier processes used fossil energy for the electrolysis to separate hydrogen and oxygen in water molecules. Called Grey Hydrogen, it had a large carbon footprint. There was also Blue Hydrogen produced from methane in natural gas. Green Hydrogen from electrolysis of water uses renewable energy sources like hydropower or geothermal. Carbon dioxide is not released or involved at any stage, and the clean hydrogen in fuel cells can be used to heat homes and offices and power transportation. “We in Nepal have an opportunity to use our abundant hydroelectricity to produce hydrogen which can replace imported petroleum,” says Biraj Singh Thapa, who heads the university’s Green Hydrogen Lab. Nepal’s existing generation capacity is 2,800MW and the government’s target is to reach 30,000MW by 2035. Monsoon hydropower surplus is going waste because of lack of demand at present, while electricity production falls in the dry season. But with more hydropower plants coming online, Nepal will soon have a winter surplus and new demand has to be created so electricity does not go to waste. Export is one option but it is more beneficial to use the excess electricity within the country to replace petroleum.&nbsp; If diesel, petrol and gas consumption is reduced by even 10%, Nepal can slash Rs30 billion from its import bill. But even if we sell all of our electricity to India, we will earn just half that amount.&nbsp; Energy experts say hydrogen is the fuel of the future. Battery-powered cars are replacing petrol cars, and ultimately hydrogen will replace EVs. “Hydrogen will complement EVs,” says Thapa. “For short distances, electric vehicles are the ideal mode of transport, hydrogen is better suited for long-distance buses and trucks that carry heavy loads.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240411110436_d3ecda1715bd55a3b3c7c33d9b868cdc2352f52c091f22d769057dab2db4dad5.jpg" data-media-id="editor_1" data-image-id="20240411110436_d3ecda1715bd55a3b3c7c33d9b868cdc2352f52c091f22d769057dab2db4dad5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Fuel of the future is here Page 12-13 NT #1207"> <figcaption>Photo: GREEN HYDROGEN LAB</figcaption> </figure>  After the successful test, KU’s Green Hydrogen Lab is working on policies to operationalise and ultimately commercialise hydrogen fuel production. The government has a Green Hydrogen Policy, but it does not yet have working guidelines and directives to move things along. “There is still a lot to do. How do we tax hydrogen vehicles, number plates, blue plates, and then there is standardisation of refuelling stations,” explains Thapa. “We can have hydrogen refuelling stations ready in six months or less, but need policymakers and leaders to make the move.” This scenario seems too optimistic to some experts who see many hurdles before hydrogen can replace petrol and diesel — most important will be the cost.&nbsp; “Unless electricity tariffs come down to $0.4 cents and the electrolysis process down to $500/kW, it won’t be commercially viable to produce hydrogen in Nepal,” maintains Hitendra Dev Shakya, former Managing Director at Nepal Electricity Authority (NEA). He adds: “At current prices, hydrogen as transport fuel will be very expensive and does not make much sense. Maybe a couple of years down the line when the technology has further evolved. But not now.” Hydrogen has also been discussed as a way for Nepal to store spilled energy during monsoon for use in the dry season. But experts say there is too much efficiency loss, making it commercially not viable. Besides transportation, hydrogen from electrolysis of water may have other applications. It can be combined with nitrogen in the atmosphere to produce ammonia, which can be further combined with carbon dioxide to manufacture fertilisers like urea and Diammonium Phosphate (DAP). “The real application of hydrogen in Nepal is in the production of ammonia and fertilisers, so Nepal can be self-sufficient,” adds Shakya. “Furthermore, ammonia can be liquefied and stored for weeks whereas hydrogen can be stored just for a few days at most, and converting it back to electricity loses much of its efficiency.” Nepal suffers from a chronic shortage of chemical fertilisers every year, affecting agricultural production. Farmers across the country need at least 700,000 tonnes of urea worth Rs20 billion, which has to be imported and heavily subsidised. Ammonia production using hydrogen from water and nitrogen from the air is fairly energy-intensive, but using hydropower and channelling carbon dioxide from the cement industry can bring down costs. Capturing CO2 from cement factories would also reduce Nepal’s carbon footprint. Ammonia is also a refrigerant gas and can purify water. It can also be used in the manufacture of plastics, explosives, textiles, pesticides, dyes and other chemicals. The Nepal Army imports Rs13 billion worth of ammonia for explosives every year.

Sonia Awale

Fuel of the future is here

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209209c7e80680e0b5524jpeg.jpg" alt="" width="1079" height="1119"/><figcaption>Sundar Yatayat electric bus</figcaption></figure>There has been a spurt in imports of electric vehicles in the past six months since the government restored tax rebates, but there has not been a similar increase in the much more important battery-operated public transport sectorNepal imported 1,113 electric cars, jeeps and vans between last July and December, 2021 – nearly five times more than the same period last fiscal year when 249 such 4-wheelers were imported.“Imports of electric vehicles increased as a direct result of the government’s revenue policy to discourage fossil fuel cars,” says Nawaraj Poudel of the Nepal Energy Vehicle Association (NEVA). However, there is a 50% cash margin threshold for diesel and petrol cars, but there is no such limit for electric vehicles, which has kept the prices of battery cars high.Still, since the excise and customs duties on electric vehicles were reduced, they were competitive compared to petroleum-based vehicles which have much higher taxes.From last July to December 2021, Rs3.24 billion worth of electric four-wheelers were imported, up from only Rs105.1 million during the same period last fiscal year.However, besides the high dealer margins on electric cars making them expensive, there is also a  shortage of battery vehicles because of global supply chain disruptions. This means many customers are on six month waiting lists to buy their electric vehicles.“It is not possible to buy electric vehicles off the shelf right now,” says Dhruva Bahadur Thapa of NADA (Nepal Automobile Dealers Association) "The shortage of chips has slowed vehicle production. And this has also affected India and Nepal.”Read also: <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/">Nepal's electric future is here</a>, Sonia AwaleAlthough consumers of private vehicles have been able to reap the benefits of the government's changes in tax policy, the same has not been true for public transport.Sundar Yatayat ordered 20 Chinese electric buses, but they have been stuck at the Birganj customs checkpoint for the last three weeks because of a dispute over how much they should be taxed.“The government has fixed only 1% customs on public electric vehicles, but they said we have to pay 13% VAT and 5% tax, so we are negotiating,” says Bhesh Bahadur Thapa of Sundar Yatayat. “Apart from the taxes, the number plate charge and other fees drive up the cost of electric buses which are already more expensive than diesel buses.”A diesel bus of the same size costs up to Rs4.5 million but the tax for an electric bus alone is as much, putting the price tag of Sundar’s Chinese buses at nearly Rs20 million each.“If the government scraps the road tax for electric buses, the cost will come down by Rs1.3 million,” says Thapa. “We will sell the buses to India if the government does not review its policy.”Read also: <a href="https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/">An electric shock to Nepal's energy future</a>, Ramesh KumarNepal levies high taxes on petroleum vehicles but has been providing special rebates for the import of electric vehicles. Before fiscal year 2020/2021, electric vehicles had an excise duty of 10% and customs duty was completely waived.But the then Finance Minister Yubaraj Khatiwada, increased the excise duty 80% from zero according to the capacity of the vehicles in the budget of 2020/2021.He also increased the customs duty from 10% to 40%. This brought the import of electric vehicles to almost zero. Khatiwada had argued that such a tax policy was introduced to increase revenue and curb the drain on foreign exchange in importing luxury electric SUVs.His tax policy was widely criticised as being contrary to the policy of the government, which was to shift towards renewable. However, Khatiwada stuck to his guns.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209239c7e80680e0b5525jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>It was Khatiwada’s successor Bishnu Poudel who once more slashed the excise duty on electric vehicles and reduced the customs duty by one-fourth. However, electric vehicles would still have to pay customs duty, depending on their battery capacity.Electric vehicles up to 100kW have to pay 10% customs duty, 15% customs duty has been levied on electric vehicles of 100 to 200 kilowatts and 40% on electric vehicles of 200 to 300 kilowatts.The main reason electric buses have not been able to compete with their petroleum counterparts is that there is hardly any difference in the taxes they pay. Although the excise duty, customs and other charges on petroleum private vehicles is more than 240%, private electric vehicles pay ten times less. This has encouraged consumers to buy private electric vehicles.But in the case of public transport, even petroleum buses enjoy special tax breaks. Moreover, the showroom price of electric buses is upward of Rs10 million. Although it may look like all electric vehicles enjoy similar concessions, there is no real rebate for electric buses.“Even when consuming electricity at night, they have to pay extra in the name of demand charge. No matter whom we talk to in the government regarding change in policies favoring electric buses, nothing happens,” rues Sundar Yayat’s Thapa.Read also: <a href="https://www.nepalitimes.com/latest/why-nepal-needs-to-restore-ev-tax-subsidy/">Why Nepal needs to restore EV tax subsidy</a>, Raunab Singh KhatriEnvironmentalist Bhusan Tuladhar, who is also with Sajha Yatayat, says the government's current policy on electric vehicles is positive but inadequate: “Private petroleum cars will be gradually replaced by electric vehicles. But it is more important to replace diesel-powered buses with electric ones. That should be our priority.”He argues that private investors will not invest more on electric buses if the current customs and other policies are not revised. "If we really want to promote electric public transport, we need to provide additional tax rebates and other facilities. Other countries, including India, have offered similar concessions,” he says. “Electric public transport will have a direct impact on public health by reducing vehicular emission and air pollution.”Bishwas Gauchan of Institute for Integrated Development Studies (IIDS) says that the existing policy of providing tax exemption on electric vehicles is itself lopsided. "Tax exemption should be for public vehicles, not private ones,” he says.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209269c7e80680e0b5526jpeg.jpg" alt="" width="1500" height="1061">Since big buses, taxis and two-wheelers are responsible for more of the carbon emissions as they travel more distances, they should be prioritised in government policies. “There is no need to rush tax exemptions for private electric vehicles to the detriment of the economy," says Gauchan.Tuladhar also agrees that two-wheelers which make up about 80% of vehicles in the country and a major emitter of poisonous carbon monoxide, should be prioritised. He argues that taxes and other benefits should be provided to electric two-wheelers to reduce pollution and carbon emission.According to the Economic Survey 2021, two-wheelers account for 79.3% of the 3.987 million vehicles registered by February 2021.The Delhi state government in India has introduced a policy that when delivery companies buy new vehicles, a certain percentage of them should be electric. "Even in Nepal, policies targeting electric two-wheelers need to be put forward. Additional concessions are needed to promote electric two wheelers," says Tuladhar.NEVA’s Nawaraj Poudel argues that due to the high prices, complex geographical location of Nepal and lack of charging stations, electric two-wheelers have not been able to compete with petroleum ones.Although imports of electric motorcycles and scooters have tripled since last year, this is far less than the number of petroleum two-wheelers. Around 300,000 new two-wheelers are added to the roads of Nepal every year.More than a dozen brands of electric two-wheelers are currently sold in Nepal. Sanjeev Shilpakar, director of E-Motors at Yoma which sells TailG two-wheelers, says that the new Rs10,000 road development fee has discouraged consumers."In addition to the road development fee, consumers still need to pay 40% tax under various names," he says.Another reason that electric two-wheelers have failed to gain traction in the market may also be attributed to their higher cost. The price of electric two-wheelers in Nepal is much higher than the international market since the dealers keep a higher margin.Shilpakar refutes this, saying that the transportation cost itself is higher and the bikes have to be modified to fit Nepal’s terrain. He adds, "Although the cost price of electric two-wheelers is higher than petroleum ones, the operating cost is definitely lower."Import of electric vehicles in the last five years:Fiscal year                          Electric four wheelers    Electric two wheelers2021/22 (6months)          1,103                                    1,9222020/2021                         249                                      2,3332019/2020                         575                                      3902018/2019                         4,745                                    2,0472017/2018                         5,239                                    1,004Source: Revenue DepartmentRead more:<a href="https://www.nepalitimes.com/latest/nepal-backs-evs-to-boost-hydro-electricity-uptake/">Nepal backs EVs to boost hydro-electrivity uptake</a>,  Nepali Times

Nepal goes electric, but conditions apply

<img width="1500" height="1081" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912114/636b89db9c7e80680e06b20djpeg.jpg" alt=""/>As the COVID-19 pandemic grips the world, some have seen a silver lining in a reported <a href="https://www.nepalitimes.com/here-now/the-climate-connection-to-covid-19/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/the-climate-connection-to-covid-19/&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNE5EMMX8yiq28bsNtE7o8mXvSd2Lw">decrease in carbon emissions</a> and pollution levels. However, as China and other countries in Asia recover from the worst of the epidemic there are worries that air quality improvements will be short-lived as economies struggle to rebuild. Short-term economic growth will be at the expense of long-term environmental benefits, it is feared.As a first mover in post-COVID-19 recovery, China has the unique opportunity to revive its economy in a way that takes climate change into account, setting a precedent for other countries.The economic slowdown caused by measures to contain the pandemic has resulted in a direct, positive effect on the environment in China. <a href="https://www.bbc.com/news/world-asia-51691967" data-saferedirecturl="https://www.google.com/url?q=https://www.bbc.com/news/world-asia-51691967&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNHh0B8nwwMhmmZHWjTybayXaD9wvw">Satellite images from NASA</a> have shown a dramatic drop in pollution in the past few months, with the Yangtze River Delta region around Shanghai seeing a <a href="https://energyandcleanair.org/why-does-the-smog-strike-beijing-even-when-the-city-is-closed-down/" data-saferedirecturl="https://www.google.com/url?q=https://energyandcleanair.org/why-does-the-smog-strike-beijing-even-when-the-city-is-closed-down/&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNEe2CYvY-Nkwo1ikLhd-J77NFrFWA">particularly dramatic reduction</a> in pollution. By the first week of March, coal use in Chinese power stations hit a <a href="https://www.carbonbrief.org/analysis-coronavirus-has-temporarily-reduced-chinas-co2-emissions-by-a-quarter" data-saferedirecturl="https://www.google.com/url?q=https://www.carbonbrief.org/analysis-coronavirus-has-temporarily-reduced-chinas-co2-emissions-by-a-quarter&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNFrs2VkKWlv1qMsAbaUhmOX9m0dxw">four-year low</a>, domestic flights have <a href="https://www.independent.co.uk/travel/news-and-advice/coronavirus-china-flights-cancelled-virus-symptoms-covid-19-a9350911.html" data-saferedirecturl="https://www.google.com/url?q=https://www.independent.co.uk/travel/news-and-advice/coronavirus-china-flights-cancelled-virus-symptoms-covid-19-a9350911.html&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNHduFHxgzNtz6bIUvDd4XnToJjkrA">fallen</a> by up to 70%, output of key steel products was at <a href="https://www.carbonbrief.org/analysis-coronavirus-has-temporarily-reduced-chinas-co2-emissions-by-a-quarter" data-saferedirecturl="https://www.google.com/url?q=https://www.carbonbrief.org/analysis-coronavirus-has-temporarily-reduced-chinas-co2-emissions-by-a-quarter&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNFrs2VkKWlv1qMsAbaUhmOX9m0dxw">its lowest in five years</a>, and official statistics suggest that output across key industrial sectors <a href="https://www.independent.co.uk/environment/coronavirus-china-co2-climate-crisis-greenhouse-gas-carbon-emissions-coal-a9351436.html" data-saferedirecturl="https://www.google.com/url?q=https://www.independent.co.uk/environment/coronavirus-china-co2-climate-crisis-greenhouse-gas-carbon-emissions-coal-a9351436.html&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNFtjdvalA1OiEIb74Vk39hzGNTUBQ">decreased</a> by up to 40%. Overall, scientists have found that the measures to contain COVID-19 <a href="https://www.carbonbrief.org/analysis-coronavirus-has-temporarily-reduced-chinas-co2-emissions-by-a-quarter" data-saferedirecturl="https://www.google.com/url?q=https://www.carbonbrief.org/analysis-coronavirus-has-temporarily-reduced-chinas-co2-emissions-by-a-quarter&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNFrs2VkKWlv1qMsAbaUhmOX9m0dxw">cut at least a quarter </a>of China’s greenhouse gas emissions in just two weeks in mid-February.  <img width="1136" height="836" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912114/636b89df9c7e80680e06b20ejpeg.jpg" alt="">There was hope that the virus would prove to be a wakeup call for Chinese policymakers. However, China’s National Energy Administration (NEA) <a href="https://www.smart-energy.com/renewable-energy/china-slashes-solar-offshore-wind-subsidies-by-half" data-saferedirecturl="https://www.google.com/url?q=https://www.smart-energy.com/renewable-energy/china-slashes-solar-offshore-wind-subsidies-by-half&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNGkhd34ngZEdTEdLqyNLPutzKz55g">slashed solar and offshore wind subsidies</a> by half, regulators seem to be considering <a href="https://www.bloomberg.com/news/articles/2020-03-18/china-may-help-struggling-carmakers-by-relaxing-emission-curbs?cmpid=BBD032020_CN&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=200320&amp;utm_campaign=china" data-saferedirecturl="https://www.google.com/url?q=https://www.bloomberg.com/news/articles/2020-03-18/china-may-help-struggling-carmakers-by-relaxing-emission-curbs?cmpid%3DBBD032020_CN%26utm_medium%3Demail%26utm_source%3Dnewsletter%26utm_term%3D200320%26utm_campaign%3Dchina&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNGXzlOP_gg2HrcjzXUzuoo3dF6ZYw">relaxing some emissions standards</a> to support the hard hit automobile sector, and the government is <a href="https://mp.weixin.qq.com/s/BN_53Gd1P2FSpN565NkCzQ" data-saferedirecturl="https://www.google.com/url?q=https://mp.weixin.qq.com/s/BN_53Gd1P2FSpN565NkCzQ&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNG7-4PfHtpcS7U6GCfsaq_YxYJ8AA">working on approving</a> 23 GW of new coal fired power capacity. China was already on this path even before the COVID-19 outbreak, with some <a href="https://www.chinadialogue.net/article/show/single/en/11642-Is-coal-power-winning-the-US-China-trade-war-" data-saferedirecturl="https://www.google.com/url?q=https://www.chinadialogue.net/article/show/single/en/11642-Is-coal-power-winning-the-US-China-trade-war-&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNEzNaLuFylldyeL9bYE3UcdqUZ-uw">suggesting</a> that coal power would give China the edge in its trade war with the US.  If China indeed rolls back its low-carbon transition, the consequences will have global impact. The nation is <a href="https://www.forbes.com/sites/arielcohen/2019/11/07/us-withdraws-from-paris-accord-ceding-leadership-to-china/" data-saferedirecturl="https://www.google.com/url?q=https://www.forbes.com/sites/arielcohen/2019/11/07/us-withdraws-from-paris-accord-ceding-leadership-to-china/&amp;source=gmail&amp;ust=1585924433823000&amp;usg=AFQjCNEgemFmRBVCNvX5zpnlDB5Bak0tKg">considered to be the flag bearer</a> of international climate policy, since the US withdrawal from the 2015 Paris Agreement. The international climate movement is already shaky and US elections later this year <a href="https://www.nytimes.com/2019/11/04/climate/trump-paris-agreement-climate.html" data-saferedirecturl="https://www.google.com/url?q=https://www.nytimes.com/2019/11/04/climate/trump-paris-agreement-climate.html&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNGQI9zQlmYyMIbD4PUoj2jwPwmLmg">will be pivotal</a> in understanding the future of American engagement in global agreements on emission cuts. The US Environmental Protection Agency (EPA) has just <a href="https://www.nytimes.com/2020/03/26/climate/epa-coronavirus-pollution-rules.html?action=click&amp;module=Top%20Stories&amp;pgtype=Homepage" data-saferedirecturl="https://www.google.com/url?q=https://www.nytimes.com/2020/03/26/climate/epa-coronavirus-pollution-rules.html?action%3Dclick%26module%3DTop%2520Stories%26pgtype%3DHomepage&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNGQT0pgb0eKTDZ9mpP1CY0STR9Frg">drastically relaxed rules</a> removing liabilities for polluters for an undetermined period during the COVID-19 outbreak. On Wednesday Britain announced that this year’s pivotal climate negotiation (COP26) in Glasgow <a href="https://www.theguardian.com/environment/2020/apr/01/uk-likely-to-postpone-cop26-un-climate-talks-glasgow-coronavirus" data-saferedirecturl="https://www.google.com/url?q=https://www.theguardian.com/environment/2020/apr/01/uk-likely-to-postpone-cop26-un-climate-talks-glasgow-coronavirus&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNF9nFc8uNQV1VkTnEE6OodhikQSQQ">will be postponed</a> until next year. This may actually give governments time to reflect and scaleup climate ambitions depending on the commitments of the next US president.  <img width="1654" height="1320" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912114/636b89e29c7e80680e06b20fjpeg.jpg" alt="">Despite evidence suggesting that China is taking a step backward in its green policies, there is some optimism after remarks by President Xi on <a href="https://exbulletin.com/politics/45262?business-services" data-saferedirecturl="https://www.google.com/url?q=https://exbulletin.com/politics/45262?business-services&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNGqbOIoeAiQrAXUTWoMrfSvpXXIFg">his visit</a> to Yucun, a village in Anji county of Zhejiang province on Monday. “The environment itself means the economy. If you protect the environment, you will receive environmental rewards,” Xi said. With top-level commitment still seeming to be intact, it is important for commentators to wait until China <a href="https://www.chinadialogue.net/article/show/single/en/11434-The-14th-Five-Year-Plan-what-ideas-are-on-the-table-" data-saferedirecturl="https://www.google.com/url?q=https://www.chinadialogue.net/article/show/single/en/11434-The-14th-Five-Year-Plan-what-ideas-are-on-the-table-&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNEsochgrT-r2rzNXDphQJtxRJoblQ">finalises</a> its next five-year plan later this year before coming to any conclusions on the future of its growth policy. It will be critical for China to draft economic and social policies with green finance and climate action at their core. China needs to lead by example. It is imperative for the much-anticipated <a href="https://icapcarbonaction.com/en/?option=com_etsmap&amp;task=export&amp;format=pdf&amp;layout=list&amp;systems%5B%5D=55" data-saferedirecturl="https://www.google.com/url?q=https://icapcarbonaction.com/en/?option%3Dcom_etsmap%26task%3Dexport%26format%3Dpdf%26layout%3Dlist%26systems%255B%255D%3D55&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNFMS97Mi1tWVlB5LWaNPrYmEzH9MQ">National Emission Trading Scheme (ETS)</a> to be rolled out on time in 2020, enhance its <a href="https://climateactiontracker.org/countries/china/" data-saferedirecturl="https://www.google.com/url?q=https://climateactiontracker.org/countries/china/&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNGaituUvrx64ILvbSEZ4P1oWNQaCg">Nationally Determined Contribution (NDC)</a>, and green the <a href="https://green-bri.org/" data-saferedirecturl="https://www.google.com/url?q=https://green-bri.org/&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNE0vk8XL2Ak_uV0tIflz5unK7t8Zw">Belt and Road Initiative</a>. As <a href="http://sdg.iisd.org/events/2020-un-biodiversity-conference/" data-saferedirecturl="https://www.google.com/url?q=http://sdg.iisd.org/events/2020-un-biodiversity-conference/&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNH0rV6y8iZgoe3vmJOVfN54tVFZqg">host</a> of the 15th meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD) in Kunming in October, China also has the opportunity to expand its recent national <a href="https://www.nepalitimes.com/banner/coronavirus-outbreak-may-curb-wildlife-trafficking/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/coronavirus-outbreak-may-curb-wildlife-trafficking/&amp;source=gmail&amp;ust=1585924433824000&amp;usg=AFQjCNHv6P7MqZAWR2tcFe5XwuXKjCTqqg">ban on wildlife trade and consumption</a> into a worldwide ban. Although the COVID-19 epidemic itself might not be directly linked to climate change, this ban suggests that China acknowledges the integral connection of human, animal and ecosystem health. Humanitarian needs are presently the priority for the world. Nonetheless, the climate crisis also needs to be urgently addressed, as its consequences will have far greater impact on our ecology, economy and society into the future. How China pursues the revival of its economy in the aftermath of the COVID-19 pandemic will be closely watched. This is a unique leadership opportunity for China to foster innovative policymaking centered around climate action that will be an example for other countries to follow. Rastraraj Bhandari is currently pursuing a Masters in Economics and China Studies at the Yenching Academy of Peking University.

Climate, COVID-19 and China

https://www.youtube.com/watch?v=E61i3SgIt4o&amp;feature=youtu.beNepal’s future may not be in hydropower, as most assume, but actually in the dung heap. A new industrial-scale biogas plant near Pokhara has proved that livestock and farm waste producing flammable methane gas can replace imported LPG and chemical fertiliser.Over the past 30 years, Nepal has become a world leader in spreading locally-designed household biogas digesters. There are now 300,000 of them, helping reduce deforestation, improving people’s health and lifting women out of drudgery and poverty.Now, a company in Pokhara has enlarged household digesters into an industrial scale plant that uses climate-friendly technology that could ultimately be scaled  nationwide to reduce Nepal’s balance of trade gap.Read also:<a href="http://archive.nepalitimes.com/news.php?id=13968#.Xg2OjVUzbIU">Father of Nepal’s gobar gas industry</a>, David McConkey<a href="http://archive.nepalitimes.com/article/nation/muster-energy-face-future,3061">Mustering up energy to face the future</a>, Om Astha RaiKushal Gurung’s grandfather was in the British Army, and he also applied for recruitment but failed the eyesight test. So, he set up Gandaki Urja in Pokhara that works with wind, solar and hydropower, but he believes Nepal’s best option for sustainable growth lies in energy from waste.“Nepal must abandon fossil fuels, but even among renewable energy sources biogas has a three-fold advantage. It reduces greenhouse gas emissions, and is therefore climate friendly. It allows us to manage raw waste. And it can slash our import bill for LPG and chemical fertiliser,” says Gurung. “It is a win-win-win.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101116/636b6ff39c7e80680e060050jpeg.jpg" alt="" width="1500" height="1125"/>A tipper truck has just arrived from Gorkha at Gandaki Urja’s biogas plant at Kotre near Pokhara, which with its dome digester looks like a nuclear reactor. The truck tilts its container to empty 5 tons of smelly poultry waste into a pit where rotting vegetables and cow dung from a farm in Syangja are all being mixed before being fed into the 4,000 cubic meter digester that is kept inflated.In the absence of oxygen, bacteria already in the cow dung go to work to break down the waste into methane, carbon dioxide and hydrogen sulphide. The impurities are removed by filters to produce 200 cylinders of bio-CNG a day which are sold to big hotels and restaurants in Pokhara.Read also:<a href="https://www.nepalitimes.com/opinion/no-smoke-without-fire/">No smoke without fire</a>, Ajaya Dixit<a href="http://archive.nepalitimes.com/article/nation/No-alternative,266">No alternative to alternative energy</a>, Bhrikuti RaiCustomers pay a deposit for the cylinders and pressure regulators, and usually use up about two cylinders a day. The cost per kg for the bio-Compressed Natural Gas (bio-CNG) is the same as the state subsidised Liquified Petroleum Gas (LPG). However, customers prefer the biogas because it saves them up to 30% cost because it has higher calorific value than LPG, and there is no residue that goes waste.“So far, the customers are satisfied, and we see demand growing in the future as word spreads,” says Ashim Kayastha, Director of Gandaki Urja.Half the plant’s revenue comes from bio-CNG and the other half from the effluent which is dried and sold as organic fertiliser. The plant can produce up to 11,000 tons of fertiliser a year and is sold to surrounding farms.The future of bio-CNG depends on scaling up the technology since any municipality generating more than 40 tons of biodegradable waste per day could have its own biogas plant. Nepal imports 500,000 tons of chemical fertiliser a year, and if each of 100 municipalities produced 5,000 tons of organic fertiliser Nepal could slash its import bill.Read also:<a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/">An energy windfall for Nepal?</a>, Kushal Gurung<a href="https://www.nepalitimes.com/here-now/nepal-turns-to-solar-and-batteries-to-meet-peak-demand/">Nepal turns to solar and batteries to meet peak demand,</a> Kunda Dixit<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101116/636b6ff69c7e80680e060051jpeg.jpg" alt="" width="1500" height="1124">This could also significantly reduce the country’s annual import of Rs33 billion worth of LPG from India which grew four-fold in the past 10 years, making up 2.5% of Nepal’s total import bill. But to scale up, industrial biogas needs the same government incentives as hydro, solar and wind power.At the moment hydropower investors enjoy a 100% corporate tax holiday for 10 years, and 50% for the next five years. There is only 1% tax on imports of equipment for solar, wind and hydropower, there is no such provision for the equipment for industrial scale biogas. Instead, there is a tax on interest, and also VAT on bio-CNG.“The government should look at this not only as an energy project, but at its multifaceted benefits,” says Kushal Gurung of Gandaki Urja. “There is a waste-to-energy and fertiliser angle, too. If we want to make Nepal fully organic in the next ten years, projects like these need to be prioritised.”Gandaki Urja got a boost from an unlikely source, Business Oxygen (BO2) in Kathmandu which helps entrepreneurs running Small and Medium Enterprises (SMEs) to scale up by injecting equity and providing technical assistance.Read also:<a href="https://archive.nepalitimes.com/article/nation/wind-energy-for-electricity-in-nepal,1997">Putting wind in the map,</a> Kushal Gurung<a href="https://www.nepalitimes.com/opinion/climate-risk-to-hydropower-investment/">Climate risk to hydropower investment</a>, Ajaya DixitSays Siddhant Pandey of BO2: “We are always on the lookout for climate investments, and we realised that bio-CNG would be an incredible adaptive resilience investment. It would displace imports of LPG and fertiliser. It was going to be clean, no carbon footprint, and it made business sense because it met our internal return on investment expectation.”The challenges are ensuring reliable sources of raw material and building knowhow for the technology within Nepal.Says Pandey: “The Pokhara plant is a drop in the ocean, it can abe replicated in all 7 provinces. We know it is scalable, and it depends how proactive provincial governments will be.”

Kunda Dixit

This is bullshit

https://youtu.be/TjoXT_Pu2koWith its new highway to the north, Surkhet has become the gateway to the Karnali and is morphing into a boomtown. But 10 minutes out of the dusty, bustling city nestled amidst a terraced landscape, the Kopila Valley School (KVS) is a functioning model for the rest of Nepal on how schools should be built and administered.At a time when progress is marked by the rise of glass and concrete structures, the school employs rammed-earth technology with an ecofriendly philosophy that uses local materials for construction, harnesses the sun and sewage for energy, harvests rainwater and minimises waste.But even founder Maggie Doyne at first needed convincing by architect Prabal Thapa to accept a mud design for the buildings. Her vision of an environment-friendly school was one made of bamboo, like the Green School she had seen in Bali.“Look, we’re not in Bali,” Thapa told her. “We are in Nepal, and Nepal is known for mountains. With rammed earth, you’re making mountains.”Read also:<a href="https://www.nepalitimes.com/here-now/quake-was-a-learning-experience-for-nepals-schools/" target="_blank" rel="noopener">Quake was a learning experience for Nepal’s schools</a>, Prakriti Kandel<a href="https://www.nepalitimes.com/editorial/lowest-common-denominator/" target="_blank" rel="noopener">Lowest common denominator</a>, Editorial<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41ae9c7e80680e04a68cjpeg.jpg" alt="" width="1400" height="1049"/><figcaption>All photos: SHEILIN TEO</figcaption></figure>Rammed earth provides excellent thermal mass to keep temperature stable indoors, it uses local material and labour, the structure is durable and easy to maintain. The walls are nearly 0.5m thick, and reinforced with steel and concrete banding for seismic resistance.“We wanted the school to feel Nepali through and through, to stay true to local architecture that is so stunningly beautiful,” explains Doyne, showing us around the campus.The two-storey school blocks are simple and rectangular, with gabled roofs, breezy stairwells, and are connected by corridors on one side, much like traditional farmhouses in Nepal. The buildings are designed as modular blocks that can be arranged in various ways to suit the landscape and functions required by the school. The simplicity and repeatability of the modules were important considerations to allow ease of building by unskilled local labourers, many of them women trained on the job.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41b19c7e80680e04a68djpeg.jpg" alt="" width="5000" height="1784"><figcaption> </figcaption></figure>Standing within the grounds, it becomes clear why buildings were sited as they were: they form a protective coterie around a central sports court and create ancillary terraces where children play. The topography creates opportunities for passive surveillance from the administrative block that sits towards the top of the sloping site, and plenty of gathering and resting places along stone-lined steps that double as bleachers overlooking play areas and gardens. When children pour out of their classrooms, they tumble across the sports court and down the stairs, bobbing along ramps that slice across the school’s terrace walls brightly coloured in house colours of reds, blues, yellows and greens.Read also:<a href="http://archive.nepalitimes.com/news.php?id=19495#.XOah1BYzbIU" target="_blank" rel="noopener">Bhaktapur</a>, Lukas Grimm<a href="http://archive.nepalitimes.com/news.php?id=12450#.XOahzhYzbIU" target="_blank" rel="noopener">Mud, glorious mud</a>, Nripal Adhikari“Construction was so difficult, and the only thing that got us through the really hard moments was knowing that one day there would be kids in these classrooms,” Doyne says, explaining that complications in scheduling, budgets and differences of opinion about expectations and work values of intercultural and international teams proved to be challenges.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41b49c7e80680e04a68ejpeg.jpg" alt="" width="2500" height="2174"><figcaption> </figcaption></figure>The project is not just a simple school. Strengthened with steel, stabilised with cement and concrete, fitted with high performance, durable windows, the school buildings called for experience and skills beyond those required by a traditional project. More advanced, outside-the-box technology gives the campus an edge of self-sufficiency, ease of maintenance and durability.Green technology comes at a cost, with lengthy payback periods that are possibly out of reach of most other schools in Nepal, but are easily adaptable to the local context: filtration systems, biogas, rainwater harvesting by Smart Paani, and solar systems by Sun Farmer. At Kopila, all these design elements are integrated in the school’s new buildings, their functions and terrain, giving the school its green edge.“I feel that this campus has so much integrity. Every step of the way, we made decisions that were sometimes hard, or that had cost implications, or we had to forgo certain things in order to have others, but there’s nothing I would change,” says Doyne.Read also:<a href="https://www.nepalitimes.com/banner/learning-from-nepals-past-to-rebuild-its-future/" target="_blank" rel="noopener">Learning from Nepal’s past to rebuild its future</a>, Prakriti Kandel<a href="https://www.nepalitimes.com/banner/lost-in-reconstruction/" target="_blank" rel="noopener">Lost in reconstruction</a>, Shiva UpretyThis approach is not limited to the physical design of the school; its curriculum is also grounded in place-based learning that adapts Nepal’s national curriculum to the school’s philosophy. Principal Naim Chaudhari explains: “It is about trying to integrate what we find in the community, what we can learn from and what we can give back to it. After all, when the children graduate they go into the community and they will live there. That is where they will grow further.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41b89c7e80680e04a68fjpeg.jpg" alt="" width="1400" height="1050">The school has a farm and a vocational focus, and the students learn at least one skill each year from among cooking, washing, cleaning, driving, farming, agro-forestry, animal husbandry, horticulture, welding, woodwork, machine work and electrical skills.“When our children graduate from here, they should either go for further studies or be able to find a job,” says Chaudhari.The school includes Grades 1-10 and an Early Childhood Village that focuses on self-learning through play and exploration. The older ‘plus-two’ students are still in an old bamboo school by the highway, but there are plans to bring them into the new buildings.The school’s design allows the new classrooms to blend into the greenery, preserving the productive fruiting trees on site. Just as village life still clings to the fringes of Surkhet, the school’s program extends to the students’ families, farms and the community.“We are a full service community school,” Doyne explains. “It is not just for the kids who study here — we want to bring the community in. This buildings belong to them, and I hope it makes them think about what they ultimately build someday. Just like Bali inspired Kopila, I hope that there will be other schools like this in Nepal, because this one existed.”Read also:<a href="https://www.nepalitimes.com/banner/class-struggle/" target="_blank" rel="noopener">Class struggle</a>, Prakriti Kandel<a href="https://www.nepalitimes.com/banner/building-back-cheaper-and-stronger/" target="_blank" rel="noopener">Building back cheaper and stronger</a>, Sapana Shakya and Aman Raj KhatakhoMaggie's missionIn 2005 when she was 19, Maggie Doyne was trekking in Nepal when she met Hima, a child worker. That started Doyne's Nepal journey, and her efforts to help children go to school eventually expanded to setting up Kopila Valley School and its sister initiatives in Surkhet.Doyne was named the 2014 Unsung Hero of Compassion, awarded by the Dalai Lama, and won the 2015 CNN Hero of the Year Award. Kopila is funded by The BlinkNow Foundation, a non-profit Doyne founded in 2007 as part of a network of initiatives comprising a children’s home, housing for at-risk girls, a training centre for women and a health clinic. KVS admits primarily children from disadvantaged backgrounds, providing for their education and welfare needs. It also runs a Futures Program to teach life skills, and provides vocational and academic support for senior students.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41bb9c7e80680e04a690jpeg.jpg" alt="" width="400" height="400"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41bc9c7e80680e04a691jpeg.jpg" alt="" width="2000" height="1602"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41c09c7e80680e04a692jpeg.jpg" alt="" width="640" height="961">Sun roofConcentrated solar panels on the roof of the canteen, by Sunworks Nepal, power cookers in the kitchen and replace Rs60,000 worth of LPG per year. Gas is still used as backup, but it is methane from a digester hidden under the artificial turf of a sports court, fed by effluent from the toilets. Irrigation for the school’s vegetable garden and landscaping comes from black and grey-water filtration beds. Rainwater from the roofs is harvested into a 300,000l water storage tank under the school canteen, designed to fill all water needs for a year. Arrays of solar photovoltaics power the school, backed up by a diesel generator. Compost from black-water waste is used to grow the KVS’s organic produce.

Starting Nepal’s green school movement

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933419c7e80680e03df86jpeg.jpg" alt="" width="1400" height="1008"/><figcaption>PIPE DREAM: Part of a 69km petroleum pipeline connecting Amlekhganj in Nepal to an oil refinery in India, under construction in Patlaiya. The pipline is proof to many that the Nepal government has no intention of switching to renewable energy any time soon. Pic: Jiyalal sah</figcaption></figure>President Bidya Devi Bhandari will be leading the Nepali delegation at the Climate Summit (CoP24) in Poland next month, and environmental activists are lobbying with the Nepal government to get her to make a far-reaching policy statement on renewable energy.They say Nepal’s commitment of turning <a href="https://www.nepalitimes.com/banner/20-electric-by-2020/">20% public vehicles into battery-operated ones by 2020</a> is not ambitious enough, and the President can announce in Katowice more meaningful steps towards electric mobility.In a symbolic move to end Nepal’s fossil fuel addiction, President Bhandari is already riding an electric  but activists say that is not enough. She needs to create political momentum by getting her government to announce a cut-off date for Nepal to turn all public vehicles into electric ones.Manjeet Dhakal, adviser to the Least Developed Countries (LDC) support group at the UN Framework Convention on <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/">Climate Change</a> (UNFCCC), says: “Nepal can move towards electric mobility if its head of the state announces a goal to this effect at the international climate change conference in Poland.”Read also: <a href="https://www.nepalitimes.com/banner/electri-city-cars/">Electri-City Cars</a>, Sikuma Rai<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933449c7e80680e03df87jpeg.jpg" alt="" width="327" height="327"><iframe id="datawrapper-chart-CZIOW" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/CZIOW/4/" height="472" frameborder="0" scrolling="no"></iframe><iframe id="datawrapper-chart-2DG41" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/2DG41/3/" height="472" frameborder="0" scrolling="no"></iframe>Last week, Prime Minister KP Oli flagged off Nepal’s first five electric buses in Kathmandu, and unveiled the country’s first National Plan of Action for Electric Mobility.Bhushan Tuladhar of Sajha Yatayat, the public transportation company that got the first lot of electric buses on loan from the Lumbini Development Trust for Kathmandu routes, says: “Public transport is directly related to public health, and it is also linked to Nepal’s economic well-being. This can be the beginning of a new era in clean transportation.”The National Plan of Action envisages a separate unit at the Ministry of Environment for the promotion of electric transport, but many are skeptical about it, given Nepal’s poor track record in implementing commitments.A recent <a href="http://www.cansouthasia.net/wp-content/uploads/N-CANSA-State-of-Climate-Action-in-Nepal-FINAL-7-October-2018.pdf?fbclid=IwAR0IOLO0TREa5UjbdMLsBnUyTRyeaRfP-iDMW-bI2-tFyddYbj5KstNKOCI">report by Nepal Climate Action Network South Asia (N-CANSA)</a> says Nepal is actually moving in a reverse, non-renewable direction despite many past policies, strategies and international obligations to lower its dependency on fossil fuels – the biggest source of CO2 emissions.Read also: <a href="https://www.nepalitimes.com/editorial/climate-climax/">Climate Climax</a>, Editorial<a href="https://www.nepalitimes.com/opinion/decarbonise-now/">Decarbonise now</a>, Ajaya DixitNepal’s Climate Change Policy 2011 and the Environment-friendly Vehicle and Transport Policy 2014 aimed to reduce greenhouse gas emissions by steadily reducing imports of petrol, diesel and LPG. In 2016, Nepal passed its National Determined Contributions (NDC) aiming to turn 20% public vehicles into battery-operated ones.But since then, the country’s addiction to fossil fuel has only deepened. All the policies and strategies did not make a dent on imports. In 1993/94, the year Nepal ratified the UNFCC, Nepal’s total import of petroleum products was worth only Rs5 billion. By 2008, it had grown to nearly Rs40 billion, and in the past ten years it has more than tripled to an annual Rs150 billion. (See graphs)The reason is the explosive growth in the number of <a href="http://archive.nepalitimes.com/blogs/kundadixit/2018/01/24/electric-cars-shock-fossil-industry/">fos</a>sil fuel vehicles from only 84,000 ten years ago to 438,000 today. Most of the increase was during the tenure of Maoist finance minister Baburam Bhatttarai in 2008-9. Part of the reason for the growth in petroleum imports was also the corruption-driven artificial shortage of electricity which saw a proliferation of diesel generators. Import of diesel grew five times in the past ten years.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933469c7e80680e03df88jpeg.jpg" alt="" width="640" height="848"><iframe id="datawrapper-chart-hKFc3" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/hKFc3/4/" height="390" frameborder="0" scrolling="no"></iframe>For every Rs100 earned from its exports, Nepal spends Rs169 just to import petroleum from India. Nepal is now also importing half of its electricity need from coal-fired thermal plants in India. Although it went down slightly with monsoon supply and new hydro powerplants coming on stream, Nepal imported 424MW of electricity from India this summer, which was about 35% of peak demand.Says Durga Upadhyay, a co-author of the CANSA report: “If it was not for remittances, our foreign currency earnings from exports would not even pay for petroleum imports.”Read also: <a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">The cost of light</a>, Om Astha RaiDespite policies and symbolic moves to reduce petroleum imports, Nepal’s consumption is growing as the road network spreads and vehicle imports increase. The government’s plans to build a 36km cross-border petroleum pipeline from India and storage stockpiles in each Province indicates that there is no end in sight to the country’s fossil fuel addiction.Manjeet Dhakal says these moves indicate that Nepal’s policymakers believe the cost of ending the dependence on petroleum is too high. “But that is an outdated concept,” he says, “it is now possible to drive a country’s economy without using fossil fuels. PM Oli should learn from Costa Rica, a country he visited recently.”<iframe id="datawrapper-chart-ny5IE" style="width: 0; min-width: 100% !important;" src="//datawrapper.dwcdn.net/ny5IE/5/" height="400" frameborder="0" scrolling="no"></iframe><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933489c7e80680e03df89jpeg.jpg" alt="" width="351" height="555">Some argue that Nepal’s economy is so petroleum dependent that it cannot switch suddenly to renewable without assistance for the conversion of cars, and to add new hydropower plants. Nepal’s per capita <a href="https://archive.nepalitimes.com/regular-columns/half-full/A-carbon-neutral-Nepal-is-possible-clean-Nepal,1064">carbon</a> footprint is negligible, they add, so whether or not Nepal goes for electric mobility is not going to save the planet.However, former energy minister Dipak Gyawali says: “The volume of carbon emitted by Nepal might be small, but the rate at which we are increasing it is even higher than the industrialised West.”Gyawali says Nepal should immediately declare a peak emission year, pass a policy to gradually replace all government vehicles with electric ones and impose a tax on fuel that can be used to subsidise electric vehicles.Nepal needs to do this more importantly to reduce its balance of payment deficit, save the country from bankruptcy, and reduce its political dependence on India, than to save the world from <a href="https://archive.nepalitimes.com/article/nation/melting-mountains-shake,3073">global warming</a>.

From a fossil past to an electric future

There were two Bhutans on display during Narendra Modi’s visit this month. The first: a trusted partner, modernising rapidly with Indian support, inaugurating hydroelectric projects, and signing healthcare deals. The second: a nation that <a href="https://www.fmreview.org/gazmere-bishwo/#:~:text=In%201990%2D91%2C%20about%20a,are%20therefore%20not%20Bhutanese%20citizens.">ethnically cleansed 17% of its population </a>and has never been held accountable.
Modi chose to see only the <a href="https://kuenselonline.com/news/pm-modi-concludes-bhutan-visit-with-prayers-for-peace-and-prosperity">first </a>during his <a href="https://economictimes.indiatimes.com/news/india/india-announces-rs-4000-cr-concessional-credit-line-to-fund-energy-projects-in-bhutan/articleshow/125253915.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">11-12 November visit</a>, granting $450 million in credit, offering birthday tributes to Fourth King Jigme Singye Wangchuk, and inaugurating another hydropower project.
New Delhi has opted for strategic silence on Bhutan’s systematic persecution of the Lhotshampas in the 1990s. The displaced remain scattered across the world and in refugee camps in Nepal, their property seized, their citizenship revoked.&nbsp;
Now, on that same contested land Bhutan is building the <a href="https://nepalitimes.com/here-now/small-bhutan-dreams-big">Gelephu Mindful City (GMC)</a>, a megaproject intended to <a href="https://kuenselonline.com/news/pm-modi-announces-inr-40-billion-credit-line-new-rail-links-and-land-for-bhutanese-temple-in-varanasi">connect directly to Indian infrastructure</a>. The victims are gone, and democratic India’s values remain conspicuously absent.&nbsp;
With no Lhotshampas left to challenge the official narrative and India unwilling to raise it, Bhutan continues to suppress dissent with impunity.&nbsp;
Earlier this year, social media influencer Raghu Pati Subedi was arrested on the Assam side of Gelephu after returning from a visit to relatives in India. His family members reportedly came under intense pressure, including threats of arrest, accusing them of hiding his whereabouts. After his arrest, he was transported to Thimphu and imprisoned.
This was not an isolated incident. It is part of systemic repression that first gained international attention in the 1990s, when over 100,000 Nepali-speaking Lhotshampa were systematically stripped of their citizenship and forcibly exiled. This mass expulsion, which human rights organisations have characterised as ethnic cleansing, created a decades-long refugee crisis that continues to define the regional political and human rights landscape.&nbsp;
EXODUS
The Lhotshampa crisis of the 1990s was not a spontaneous event but the culmination of years of state-led discrimination. Through a series of legislative acts, notably the 1985 Citizenship Act and the 1989 Driglam Namzha, the ‘One Nation, One People’ policy, the Bhutanese state systematically dismantled the rights of its Nepali-speaking citizens.&nbsp;
The use of the Nepali language was suppressed, the traditional dress of the ruling ethnic group was mandated, and citizenship was revoked en masse, rendering a significant portion of the population stateless in their own homeland.
The new manuscript I am editing has harrowing accounts by the authors of those atrocities. The parallels with what happened to Subedi recently are striking and troubling, showing that even after 35 years the regime has not changed its spots. The methods may have evolved, but the repression against dissidents remains disturbingly consistent.
This refugee exodus was an immense and unasked-for burden on Nepal. Despite being a country grappling with its own political instability and limited resources, Nepal accommodated them on humanitarian grounds. Nepal has consistently advocated for a durable solution centered on the refugees’ right to safe, voluntary, and dignified repatriation.
For years, it engaged in bilateral talks with Bhutan, culminating in a joint verification process. However, these efforts ultimately foundered on what Nepal described as ‘continued rigidity and non-implementation of the agreed decisions by the Bhutanese side’.
Nepal fulfilled its moral and humanitarian duty, but the international community largely failed to hold Bhutan accountable. Bhutan’s rulers deflected global attention with the masterful narrative of Gross National Happiness (GNH), while the grim reality in the refugee camps persisted.&nbsp;
Ultimately, with repatriation proving impossible, Nepal acquiesced to a third-country resettlement program led by a group of eight countries, including the United States, Canada, and Australia. From 2007 to 2016, more than 113,500 Bhutanese refugees were resettled in <a href="https://www.unhcr.org/media/nepal-factsheet">one of the largest group resettlement programmes globally</a>, though 6,365 remain in refugee camps in eastern Nepal.
While this solution provided a lifeline for thousands, it was a tragic capitulation to Bhutan’s ethnic homogenisation project. The refugees’ right to return to their homeland has been denied. It is a cautionary tale about the limits of international diplomacy in the face of state intransigence.
Bhutan’s global brand is one of its most successful exports. The <a href="https://www.gnhcentrebhutan.org/">Gross National Happiness </a>doctrine, which promotes holistic well-being over just economic growth, has captivated the Western imagination and policymakers. It offers a vision of a mindful, environmentally conscious, and peaceful Himalayan kingdom. This carefully cultivated image has historically aimed to shield Bhutan from the level of scrutiny applied to other nations with similar human rights records.
The GNH facade, however, cracks under the weight of documented evidence. The same kingdom that champions ‘happiness’ has, for decades, maintained a justice system that human rights groups allege relies on torture, coerced confessions, and draconian laws to silence opposition.
The 1992 National Security Act, with its vague definitions of ‘treasonable acts’ against the Tsa-Wa-Sum (King, Country, and People), has been a primary tool for suppressing political dissent, particularly from the Lhotshampa.
Overlooked by the international community and ignored by global powers including India, in responding robustly to the ethnic cleansing of the 1990s sent a clear message to Thimphu: such actions could be undertaken with impunity. The monarchy emerged unscathed, its reputation burnished rather than tarnished.&nbsp;
This historical impunity now echoes in the case of Raghu Pati Subedi and the <a href="https://www.cijnepal.org/new-list-of-political-prisoners-expected-to-set-off-discussion-on-bhutans-human-rights-record">continued imprisonment of dozens of political prisoners</a> of conscience. The global community’s reluctance to challenge the GNH narrative has, in effect, become a form of complicity.
The arrest and sentencing of a social media influencer demonstrates how old tactics have been adapted for the digital age. Subedi, 40, was a new kind of threat to the state-controlled narrative and he had to be made an example of.&nbsp;
As the founder and administrator of the popular Facebook page ‘The Don of Asia’, he bypassed traditional, state-influenced media to speak directly to about 78,000 followers. His content, informational and satirical videos on rural poverty, corruption, and the GMC project, was the kind of social media activism that was deemed intolerable.
Subedi was arrested in early 2025 and sentenced to 24 years in prison. The charges allegedly stemmed from Subedi’s social media criticism of the GMC, a flagship project of Nepal-born Bhutanese fifth King Jigme Khesar Namgyel Wangchuck.&nbsp;
For <a href="https://thenewamericansmag.com/2024/11/18/the-kings-gelephu-mindfulness-city/#:~:text=Ganga%20Lamitare%2C%20who%20owns%20four,ancestors%20in%20building%20the%20nation.">Bhutanese refugees like Gangaram Lamitare</a>, the GMC represents a bitter irony, a development rising on their confiscated ancestral lands.&nbsp;
Gangaram, who owns four acres where the GMC’s international airport is now under construction, says: “Many people from villages fled at night in 1990, leaving everything behind to escape oppression. Now, the Bhutanese king and ministers are spreading falsehoods worldwide, calling this land vacant, which actually belongs to those forced to leave the country.”&nbsp;
There are signs that international support that has benefited Bhutan may be waning. The United Nations has become increasingly vocal and last year the <a href="https://www.ohchr.org/sites/default/files/documents/issues/detention-wg/opinions/session101/a-hrc-wgad-60-2024-bhutan-advance-edited-ve.pdf">UN Working Group on Arbitrary Detention</a> said the detention of several Bhutanese political prisoners was arbitrary and illegal under international law.&nbsp;
In April 2025 from a group of six UN human rights experts raised grave concerns about the use of torture, denial of fair trials, and the ‘severe chilling effect’ of Bhutan’s legal framework on civic space. These developments owe much to the consistent advocacy of the Hague-based Global Campaign for the Release of Political Prisoners in Bhutan (GCRPPB) since its formation.
However, they also reflect broader shifts in international human rights scrutiny. This places Bhutan’s key international partners, particularly the European Union, in a critical position. Bhutan enjoys lucrative benefits under the EU’s ‘Everything but Arms’ trade scheme, which grants developing countries tariff-free access to the EU market contingent on respect for human rights.&nbsp;
The EU is also a significant provider of development aid to Bhutan which provides it with substantial leverage. In April 2025, members of the <a href="https://bsky.app/profile/saskiabricmont.bsky.social/post/3lmrn5mkmrs2q">European Parliament formally called on Bhutan</a> to release all political prisoners. This action signals a growing recognition that trade and partnership cannot be divorced from human rights obligations.&nbsp;
“Bhutan’s international partners and investors, including the EU, should make it clear that they expect Bhutan to comply with its human rights obligations and release them without further delay,” says Meenakshi Ganguly, of Human Rights Watch.&nbsp;
Bhutan stands at a crossroads. Its desire for deeper global economic integration is colliding with its unresolved history of human rights abuses. The international community now has a choice: either continue being charmed by the myth of a happy shangri-la or insist that the kingdom adheres to democratic values it professes to the world.&nbsp;
Nepal’s recent Gen-Z uprising offers a lesson to Bhutan. In September, when authorities attempted to ban 26 social media, Nepali youth took to the streets and, within hours, toppled the entire pro-establishment political apparatus. Their message was clear: in an age of digital connectivity and mass mobilisation, authoritarian tactics such as detaining social media influencers are both unjust and ultimately unsustainable.
This incident echoes the prophetic warnings of Devi Bhakta Lamitare, Bhutan’s first-generation democratic leader, who died in exile in India in 2022. In his seminal 1970 book
Dankindo Bhutan, Lamitare chronicled the systematic suppression of people’s rights and envisioned a path toward liberation.
Before his death, I worked with him to update and edit this work, which the Bhutan Media Society published posthumously in 2023. In a December 2020 interview I conducted for the book on the Ganga riverbank in Haridwar, Lamitare laid out a stark three-front offensive: political mobilisation from within India to awaken resistance inside Bhutan itself, relentless pressure on New Delhi to champion democracy, and a global ‘pamphlet war’ waged by resettled Bhutanese in the West.&nbsp;
Only through such sustained action, he argues, can Bhutanese citizens win the right to choose their own rulers, a principle India, the world’s largest democracy, should be championing, not abandoning.
Binod Dhungel is the Nepal correspondent for Reporters Without Borders.
<a href="http://linkedin.com/in/dhungelbinod" target="_blank">linkedin.com/in/dhungelbinod</a>, @BinodDhungel

Bhutan imprisons social media influencer

The COP30 climate summit in Brazil ended this week <a href="https://nepalitimes.com/opinion/cop30-to-cop31">without tangible commitment</a> from countries to reduce fossil fuel emissions. Its impact will be felt halfway around the planet here in Mustang which is already seeing weather extremes.&nbsp; Geographically, Mustang is on the Tibetan Plateau, north of the main Himalayan chain. It is in the rainshadow, and a high altitude desert. Winter snow has failed for eight of the past ten years, unseasonal blizzards, and frequent glacial collapse leading to floods. The Kali Gandaki Corridor follows one of the deepest gorges in the world between Annapurna and Dhaulagiri, the world’s seventh and tenth highest peaks. Lush pine forests cover the southern flanks of these mountains, but within a few kilometers the vegetation undergoes a dramatic change to a landscape of red, brown and grey cliffs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f.jpg" data-media-id="editor_1" data-image-id="20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It gets more arid the more north you go. Snow and rain in Upper Mustang used to fall mostly in winter, but now there are cloudbursts and blizzards at other times of the year.&nbsp; In the ancient walled city of Lo Manthang, elderly men have gathered at a local tea shop to drink the salted butter tea. Some sip home-made liquor infused with medicinal herbs.&nbsp; The sun has set, the temperature plummets, and the wind howls outside. Everyone agrees it does not snow like it used to any more. Read also: <a href="https://nepalitimes.com/here-now/comings-and-goings-in-mustang">Comings and goings in Mustang</a>, Shrijan Pandey  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161.jpg" data-media-id="editor_3" data-image-id="20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The flat mud roofs are leaking because rain is now falling where there used to be snow.</figcaption> </figure>  “The weather has changed drastically over the years,” says Lopsang Tsomfel Bista, Chair of the Lo Dekhar Municipality. “It doesn’t snow in winter, and it falls when it is not supposed to.”&nbsp; Lack of snow means that in spring, the pastures where nomadic herders graze their yaks and goats do not have enough grass. Previously, winter snow on the meadows would seep slowly into the soil with the spring thaw, bringing out fresh grass shoots. &nbsp; In recent years, even if there is winter precipitation, it falls as rain. The soil is not able to soak in rain as efficiently, and torrential downpours increase the risk of soil erosion and floods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1.jpg" data-media-id="editor_4" data-image-id="20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  “There used to be up to 1,500 mountain goats in every village, but now they have stopped keeping livestock,” says Bista. This is due to lack of grass and new lowland diseases moving up the mountains. Mustang has lost 28% of its population between the census in 2011 and 2021, and outmigration also means there are fewer people left to carry on a pastoral lifestyle.&nbsp; “Herders have asked for vet services in their communities because there are new insect-borne diseases,” says Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation. Read also: <a href="https://nepalitimes.com/opinion/winds-of-change-sweep-mustang">Winds of change sweep Mustang</a>, Jagannath Adhikari  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26.jpg" data-media-id="editor_6" data-image-id="20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The mud walls of monasteries and homes are crumbling because of unseasonal rainfall. </figcaption> </figure>  Mustang is flanked to the east and west by mountains that rise up to 6,000m, and glaciers on their slopes are melting fast, turning into lakes. With the rising temperature, the risk of Glacier Lakes Outburst Floods (GLOFs) has also risen.&nbsp; At the rate global average temperatures are rising, scientists say that the Himalaya will lose up to two-thirds of the remaining ice caps. When glaciers melt, it not just raises the risk from GLOFs but also affects water supply downstream.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f.jpg" data-media-id="editor_7" data-image-id="2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f" data-rendition-name="original" width="1022" height="767" loading="lazy" alt="Mustang map NT"> </figure>  FLOODS Ringzin Sangbo Gurung in Chumjung village recalls the devastation caused by a GLOF on 8 July this year that swept away a newly inaugurated bridge. The floodplain is now strewn with boulders and sand brought down by the flood which caused damage worth Rs28 million. The flood also damaged the irrigation canals that feed riverside farms where locals grew potato, buckwheat, millet and spinach. Nyima Wangmo Gurung runs a homestay in Nyamdok village, and says: “We don’t have water when we need it. And there is too much when we don’t need it.”&nbsp; Read Also: <a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">Mustang forced to adapt to climate c</a><a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">risis</a>, Ronan Wallace and Yungdrung Tsewang Gurung  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2.jpg" data-media-id="editor_10" data-image-id="20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  With warming temperatures, farmers in Mustang are growing lowland vegetables which was not possible before in plastic greenhouses. The farms depended on snowmelt in spring to irrigate their fields, but there is less snow to melt in past years. “The last heavy snowfall in winter was about eight years ago, since then we have got little or no snow,” says Tashi Norbu Gurung, Chair of Lo Manthang Rural Municipality. “This affects farmers during the April planting season.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b.jpg" data-media-id="editor_11" data-image-id="20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b" data-rendition-name="original" width="1000" height="1500" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It is not just lack of snowfall that is a problem. Springs have gone dry, and some villages like Dhey have been forced to relocate because life became &nbsp;impossible without water.&nbsp; Villagers of Samjung also <a href="https://nepalitimes.com/news/climate-migration-is-already-happening">migrated</a> to Namashung, near a river when water sources dried up. But now the new settlements are threatened by GLOFs. Karma Gurung, who runs a lodge in Choser, remembers the big flood of 35 years ago which swept away farms and covered them with debris. There have been more frequent, but destructive floods since then in Kagbeni, Lubra and other valleys. Read also: <a href="https://www.nepalitimes.com/banner/mixed-blessings-in-mustang">Mixed blessings in Mustang</a>, Mukesh Pokhrel  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd.jpg" data-media-id="editor_14" data-image-id="20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  MUD WALLS Because snowfall has been replaced by rain, Mustang’s traditional mud-wall architecture is now in <a href="https://nepalitimes.com/here-now/leaky-roofs-on-the-roof-of-the-world">danger of collapsing</a>. The homes here are closely packed, have flat roofs stacked with juniper branches for firewood. With rain in place of snow, the roofs now leak.&nbsp; Women in Thinkar village say their walls are falling apart. Some homes have collapsed, and families forced to move out. Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation says locals need plastic sheets, cement walls and corrugated roofs to cope with the rain.&nbsp; But this would mean that Mustang’s villages would lose their traditional architecture style.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d.jpg" data-media-id="editor_16" data-image-id="20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The ancient 1.5m thick mud walls around Lo Manthang built 600 years ago, the king’s palace, and monasteries are also at risk. “Changes in precipitation patterns, altering the intensity, frequency, and timing of rainfall and snowfall, have damaged traditional and cultural infrastructure, particularly mud-built private and public buildings as well as religious and heritage sites,” explains Bhawani Pandey at the Lo Gyalpo Jigme Foundation. “With the rain, and because the monuments and stupas are made from mud, they have eroded. There is leakage, and the monuments are in a dilapidated condition.” Read also: <a href="https://www.nepalitimes.com/banner/climate-smarter-himalayan-infrastructure/" target="_blank">Climate-smarter Himalayan infrastructure</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6.jpg" data-media-id="editor_18" data-image-id="20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The Lo Manthang Rural Municipality along with Lo Gyalpo Jigme Foundation, are working on a Local Adaptation Plan of Action and the Disaster Preparedness and Response Plan, which the Nepal government has made mandatory for every municipality. “We took a bottom-up approach and collected data from each village, they know best the impact of climate change and what their needs are,” says Yangchen Gurung. To address the hazards of climate change, local communities and municipalities are adapting through their own resources, without waiting for outside help to improve water conservation, control soil erosion and protect from flood.&nbsp; Says Pandey, “We are returning to conserving traditional drought-resistant crop varieties, organic pest and disease control, cultivating high-value crops and fruits, and practicing sustainable pasture management through rotational grazing. We have also developed new building codes for homes that incorporate water-resistant coating for mud roofs and walls.” &nbsp; Additional Reporting by Tashi Wangyal. &nbsp;

Too little snow, too much rain

We often see ourselves reflected in the other. For someone who grew up in Kathmandu Valley in the eighties and nineties, this maxim comes alive with an even greater force. Nepal’s media ecosystem was dismal, the school curriculum was narrow and did not provide opportunities for creative expression. Perhaps that is why I became obsessed with MTV videos and Bollywood films. I saw my developing self reflected in these story-lines and razzmatazz. When the media and education system do not engage the public and reflect myriad interests, aspirations and lifestyles of the population, citizens get detached and disconnected from their roots. I left for America for further studies, and was somewhat determined to never return to Nepal. It was a country full of potholes and black-outs. But foreigners have been fascinated with our country for decades. In the early 19th century, Francis Buchanan-Hamilton led a pioneering expedition and documented more than a thousand species of plants native to the region. Almost a century later, in 1905, Frenchman Sylvan Levi published ‘the first attempt to produce a comprehensive study of Nepal’, drawing on not just indigenous but available Chinese and European sources as well. After Nepal opened up in the 1950s, different kinds of foreigners have traveled here -- most notably, cold-war era spies disguised as diplomats, and later came the hippies. I returned to Nepal in 2013 and was primarily struck by two major demographics - the artists and the expats. Energised by the recent revolution, the creatives were making vibrant, powerful works. The expats, on the other hand, demonstrated a different way to navigate life in Kathmandu Valley. These two groups of people re-introduced Nepal to me and I began seeing my country and my hometown with a renewed perspective. Which is why one particular image from Giovanna Caruso’s ongoing show at the <a href="https://www.instagram.com/thekalasalon/?hl=en" target="_blank">Kalā</a><a href="https://www.instagram.com/thekalasalon/?hl=en" target="_blank"> Salon</a> curated by <a href="https://nepalitimes.com/review/facades-and-flowers-from-nepal-to-italy" target="_blank">Sophia L Pandé</a> instantly caught my attention -- rather, it called out to me, as if it was composed for me, framing a key moment from my own life. Its title is, coincidentally, 2013. Like most of her other works, the pen-and-ink drawing is punctuated by an explosion of watercolour: a woman standing confidently in front of a Newa-style house, a leg arched up, as if she is fixing a strap around an ankle before stepping out on an adventure. The watercolour depicts a rainbow streaming out of a pot through a second-floor window. The rest of the details are rendered in realism – clusters of garlic and onion hanging to dry from the rafters, and further down a stack of corn. There are towels drying, even an old water pump.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251201121216_f440de5b5402fe0877dc46d94f41647bd46b00035b61241d46fc9f7ffbd87d0f.jpg" data-media-id="editor_3" data-image-id="20251201121216_f440de5b5402fe0877dc46d94f41647bd46b00035b61241d46fc9f7ffbd87d0f" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="art review Kala Salon"> </figure>  When I walked over to this artwork with Caruso, she chuckled, “Ah, this work is a celebration of my 30 years in Nepal.” It was while trying to calm a restless group of students during her teaching days in Italy that Caruso first came across an iconic image of Kathmandu Darbar Square. She had found an old box of slides and while projecting images from the Himalaya to engage her students, the artist was determined to travel to Nepal. The first flat she rented was close to the square and the view from her rooftop was the same as the one she had encountered inside her classroom. She has been traveling to Nepal every year since. Some of her favourite drawings depict Khokana in morning fog. From 1993-2006, she drew murals at Ram Mandir and Pashupatinath, asking sadhus to guide her and correct her depictions. Caruso received a classical education, which means she was trained to focus on perspective and geometry while capturing mainly portraits and still lives. She is influenced by M C Escher and his explorations of mathematics and symmetry. No wonder she finds the Darbar Square architecture so compelling. She also names as inspiration Gustave Dore, whose style is different from Escher’s and I can see how she has fused these influences in her body of work: Escher’s austerity complimented and slightly dislodged by Dore’s comics and caricatures. “Before starting, the painting needs to be complete in my mind,” she explains as we pass a series of portraits titled Saraswati, Lakshmi, Kali Dancing, and Durga dominated by a roaring tiger. “These are all real people, I ask my friends and family members to sit for me.” The Kali in the drawing has the artist’s fiery copper red hair and she is dancing, surrounded by various men with flowing hair. The artist seems to have experimented here, drawing the revelers from above, and indulging in playful abandon. Depictions of Nepal are often in danger of being exoticised. But Caruso is familiar with her subjects, knows our alleys and temples intimately. Her colours and compositions are passionate and dense. In an essay, Anirudh S Chari writes the artist’s work is splashed with rapturous energy and most drawings have a carnivalesque element. ‘Kali Dancing’ illustrates this idea perfectly in that she has turned Kali’s usual fearsome portrayal on its head by depicting and embracing another feminine principle - the capacity to celebrate and create joy. Apart from drawing inspiration from Hindu goddesses and Nepal’s multi-colored rituals, Caruso has also drawn the Sumerian Ianna and Lillith and the Egyptian Nut. She enjoys drawing Nataraja, and says it is because “Shiva is a good husband”. We stand another painting titled 100 Days a Lion. “There is a saying in Italian, Better one day as a lion than a hundred days as a sheep, but I thought why not 100 Days a Lion?” This sentiment captures this nomadic artist’s spirit spanning four decades, in which she has captured urban energy as well as the sacred imagery of ‘life diaries on canvas’. From Venezia to Kathmandu and Journeys In Between Giovanna Caruso The Kalā Salon Chhaya Centre Mall, Thamel Till 12 December 10am- 8pm

Looking at Nepal from Venice

The September protests and worry about what is in store for Nepal in 2026 have added more uncertainty to a <a href="https://nepalitimes.com/here-now/nepal-needs-to-use-its-money-better">struggling economy</a>. Real estate transactions are stagnant, industries are operating below capacity because of declining domestic demand, the construction sector is slack, and investors are in wait-and-watch mode. In contrast, total bank deposits increased by Rs124 billion in the month before mid-October to Rs7.4 trillion. Official remittance inflows hit a record $13 billion in the past year. Nepal’s banks are flush with cash, with nowhere to put it. &nbsp; “The economy has flatlined. Non-performing assets are up, and real estate is at a standstill,” said Ashoke SJB Rana, CEO of Himalayan Bank.“There is excess liquidity in the market, with not many places to invest.” The main reason seems to be that both <a href="https://nepalitimes.com/here-now/relocate-reallocate-recover">domestic and foreign investors were spooked</a> by the targeted violence of 9 September, and are so worried about the runup to elections in March that they are holding on to their wallets. Not just businesses, the political uncertainty is keeping individuals &nbsp;from making big financial decisions.&nbsp; Sujeev Shakya, author of the <a href="https://nepalitimes.com/review/retrofitting-nepal-for-future-shocks">newly-released book Nepal 2043</a>, notes that the current doldrum is due to Nepalis playing it safe with their money. &nbsp; “People are holding on to their assets, and keeping their cash,” he says. “They are not investing in real estate, and avoiding buying gold because it is so volatile.”&nbsp; One sector in which banks have a lot of exposure is hydroelectricity, but even here recent floods have shown that this investment is <a href="https://nepalitimes.com/here-now/global-warning-bell-in-belem">increasingly at risk from climate breakdown</a>.&nbsp; Nabil Bank, with its focus on sustainable banking, for instance, has financed 56 hydropower projects with an installed capacity of 3,000MW.&nbsp; Says Nabil CEO Manoj Kumar Gyawali: “We cannot ignore unpredictable rainfall, increased glacier melt, more frequent glacier lake outburst floods, and landslides. These risks mean that while hydropower is essential, Nepal must diversify its energy mix." &nbsp;&nbsp; An open secret in the banking sector is that much of the liquidity is supected laundered money. Banks also have close ownership links with big businesses, and this means that even with a slow economy, banks lend to themselves or to each other to keep transaction volumes up.&nbsp; This is one reason for a high default rate. In the first three months of this fiscal year, 4.86% of bank loans were non-performing, meaning one out of about every 20 borrowers had defaulted. A year ago, this figure was 4.04%. Banks are therefore reluctant to lend, dampening the overall investment climate. &nbsp; Ironically, the high default rate is keeping mainstream newspapers in Nepal afloat at a time when the media business is also in crisis. Even as they suffer from a massive drop in advertising revenue, most daily newspapers often add pages to fit notices to borrowers about repayment, or announcements of bank auctions of collateral property. “While banks may be making a much smaller percentage of income compared to a few decades ago, they are still making a profit,” notes Shakya. “And so they are actually quite happy to be in this low-risk situation. Banks are conservative organisations after all.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065.jpg" data-media-id="editor_4" data-image-id="20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065" data-rendition-name="original" width="1500" height="1022" loading="lazy" alt="Banks"> <figcaption>Illustration: BHANU BHATTARAI / NEPALI TIMES ARCHIVE</figcaption> </figure>  Among the most striking videos of the September protests that was shared globally by tens of millions of people was the Hilton and Hyatt hotels and the Ncell building burning. That recognisable international brands were targeted did not just cause huge losses to owners, but also damaged Nepal’s overall investment climate. Looting Bhat-Bhateni and homes of businessmen also sent a negative message, spurring capital flight.&nbsp; “That was very bad optics for potential investors, you simply worry about the security of your investment when you see things like that,” says Himalayan Bank CEO Ashoke SJB Rana.&nbsp; Nepal will graduate to Middle Income Country status next year, and donors are set to move from aid to private investment. While this could reduce misuse of money, it could dry up grants and soft loans to the health and education sectors.&nbsp; But the harm may go deeper than just the aftermath of the September events. The recent<a href="https://nepalitimes.com/news/double-trouble-with-taxes"> double taxation issue</a> involving the Dolma Impact Fund, and an earlier controversy over Ncell’s capital gains tax have also put Nepal’s business climate in negative spotlight internationally.&nbsp; The banking sector is firmly on the side of investors. Says Ashoke Rana at Himalayan Bank: “This is a tax regime, it is absurd to order the payment of these taxes retrospectively. When investors see that the rules of the game can change arbitrarily, they won’t really want to put their money here. ” &nbsp; One of the positive changes in the ways Nepalis are using money is digital transactions through QR codes and mobile banking. With smartphones making up 70% of all mobile phones, QR transactions are easy and have become a part of daily life. ONLINE BANKING&nbsp; Most businesses and ride shares have this feature on board, and people do not need to carry a lot of cash or multiple bank cards. But as digital payments become the norm, the days of free transactions may be coming to an end.&nbsp; “Right now these transactions are free for the most part. This is a subsidy by the banks, because of course, it does cost something to make sure the payments go through,” says Rana at Himalayan Bank. “However, as income decreases, banks may have to look for ways to make money, so they may charge small percentages on each QR transaction.”&nbsp; Rapid digitisation has changed not only how customers use money, but also how banks think about their offices. Himalayan Bank’s new Thamel branch, for example, has cancelled plans to redesign the office for 20 tellers.&nbsp; “We realised that people were able to do so much of what they wanted digitally that we plan to have only four tellers,” says Rana.&nbsp; But cutting down on facilities and staff has not always made for a better customer experience at some bank branches.&nbsp; Economist Sujeev Shakya conducts ghost customer experience checks for banks which involves decoys entering banks to evaluate what it is like for somebody to set up a bank account.&nbsp; The stealth missions found that standards of service have regressed, with banks having a working environment reminiscent of government offices.&nbsp; Shakya points out that the general experience of going to the bank should be much better. “Sometimes it’s a knowledge issue -- banks may try to ask for non-disclosure contracts even when they don’t know why they want them,” he says.&nbsp; Despite digitisation, many banks still require paper-based forms and documents. Bankers and customers alike note that it feels archaic, almost absurd, to have to carry multiple copies of documents, sometimes only in Nepali lokta paper, across several family members and fill out what seems to be the same form over and over even though digital files exist. That could soon be changing as well. As more and more Nepalis adopt the National ID, banks have adopted pilot programs that use it to create bank accounts, replacing the myriad documents that customers had to previously present to officials, making all banking transactions more efficient and less of a hassle for the customer.&nbsp; DIGITAL SECURITY As Nepalis move their cash online, digital infrastructure needs to become more secure as well.&nbsp; Bankers spend quite a lot to make sure necessary digital security infrastructure is in place, but some banks could be using pirated software which are not trustworthy.&nbsp; There has to be better regulatory oversight to prevent phishing and fraud as online payments and digital banking spread across Nepal.&nbsp; Banks must also be innovative and ambitious. Says Shakya: “Nowhere else in South Asia are bank loans such a high ratio of the nation’s GDP. &nbsp;This actually points to a well-developed financial system and we have to take advantage of it."&nbsp; Shakya also notes that many bank executives in foreign countries, like Myanmar are actually Nepali, and that banks from Nepal could use their staff and know-how to partner with or acquire banks overseas.&nbsp; While these innovations are all welcome, it is unclear how Nepal's banking sector can jumpstart economic activity in the country. Nepal’s political future looks uncertain and stability is not a guarantee.&nbsp; In the face of continuing progress in hydro electricity and the IT sector seems to be the way forward to stimulate the economy.&nbsp; The GenZ movement was a wakeup call also to financial institutions and the need for greater transparency. Nabil Bank CEO Manoj Kumar Gyawali says the September protests sent a clear message that young Nepalis want an end to corruption, good governance, and real opportunities at home: "The banking sector has a &nbsp;responsibility to direct more lending toward the real economy, sectors that create jobs, build productivity, and strengthen long-term growth," he says.&nbsp; Despite a subdued investment climate, Gyawali is optimistic. "I do see early signs of improvement. Lower interest rates are beginning to restore public and business confidence. Rising remittances provide a safety net and fresh investment capacity for households," he says. "If government capital expenditure continues to improve, it will boost private sector activity."&nbsp;

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