<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121148/636ce5649c7e80680e096705jpeg.jpg" alt="" width="947" height="1500"/><figcaption></figcaption></figure>Countries across the world are using technology to organise, manage, prevent and track Covid-19 rates, while Nepal has fallen behind in the pandemic app race.China, being the first country to contract Covid-19, was naturally first off the mark to launch a ‘<a href="https://play.google.com/store/apps/details?id=de.mobileeventguide.healthcode&amp;hl=en_US&amp;gl=US" target="_blank" rel="noopener noreferrer">health code</a>’ app nationwide. Installing the app was made mandatory by the government, and while many labelled it a breach of privacy and part of China’s state surveillance system, it was also the only effective way to control the virus across a wide population.The app directed people to stay indoors, report their travel history and share knowledge of any symptoms they may be experiencing. Each user then received a coloured QR code to indicate their infection status: red for those considered infected by the virus, yellow for those who may have come into contact with a Covid-positive person, and green code for those who seemed fine and virus-free. Public spaces could only be accessed with a green QR code, to ensure that a Covid-positive individual doesn’t enter, say, a shopping mall and endanger others.India followed China in its contact tracing app (CTA) strategy and method when Prime Minister Modi’s office set up a committee to guide and quickly launch the ‘<a href="https://play.google.com/store/apps/details?id=nic.goi.aarogyasetu&amp;hl=en_US&amp;gl=US" target="_blank" rel="noopener noreferrer">AarogyaSetu</a>’ app. AarogyaSetu is Sanskrit for ‘the bridge for liberation from disease’.It was pretty clear that the Indian government was activating a robust PR campaign around the app as soon as it was launched on both Android and iOS app stores. Indian celebrities such as national cricket captain Virat Kohli and Bollywood actor Ajay Devgn endorsed the app via video clips requesting citizens to safeguard themselves from getting infected, The app crossed 100 million downloads and broke Pokemon Go’s record of being the fastest growing app ever.It has been one year since the app came into mandatory practice, and now airports, malls, clinics and local businesses ask Indian citizens to show their AarogyaSetu app to report their Covid status before they come into contact. As in China, the app uses the green-if-negative and red-if-positive simple <a href="https://www.nytimes.com/2020/03/01/business/china-coronavirus-surveillance.html" target="_blank" rel="noopener noreferrer">colour-based communication</a>.The app is not based on prediction but strives for accuracy in reporting. In major cities like Mumbai, the government sends a home testing medical team to test members of households, and if their report is positive, it automatically updates their Covid status on the app, which is linked to their Aadhar Card (government-issued ID).In the United States the federal government did not launch an official app or impose any mandatory rules to use CTAs. Instead, local governments collaborated with Apple and Google to develop regional apps relying on Bluetooth technology, but only for those who wish to use it. These apps ensure user safety by promising not to store personal information on their servers. A survey revealed that roughly 39% of US citizens supported or accepted the use of CTAs to control the pandemic, compared to a whopping 80% in China, indirectly suggesting that the Chinese have more trust in their government institutions than the Americans.Unlike these large economies that developed quick action digital tools under tight timelines, Germany came up with the ‘<a href="https://play.google.com/store/apps/details?id=de.rki.coronawarnapp&amp;hl=en_US&amp;gl=US" target="_blank" rel="noopener noreferrer">Corona-Warn-App</a>’ months later, without any rush, taking its time to tackle possible data privacy issues. The download of the German app is voluntary, and it is designed to respect people’s privacy by not permanently storing personal information.Iceland launched its ‘<a href="https://play.google.com/store/apps/details?id=is.landlaeknir.rakning&amp;hl=en_US&amp;gl=US" target="_blank" rel="noopener noreferrer">Rakning C-19</a>’ last April, being the country with the highest penetration of any CTA in the world (40% of Icelanders were adopting apps). However, the Icelandic Covid response team claimed that the app alone did not result in high impact. Manual tracing techniques like phone calls were more effective and required alongside the digital tool.Iceland and a few other European countries have been proponents of free but responsible movement, trusting the citizens to follow guidelines without requiring hefty fines that force them to conform. Sweden, however, has flatly rejected the idea of an official tracking app, despite having more Covid-19 cases than neighbours Denmark and Finland.Saudi Arabia, the UAE, Bahrain and other West Asian countries have rolled out CTAs with Bluetooth tracing, but Qatar has gone a step further warning that citizens who do not cooperate and install the app may face up to three years in jail.Bahrain set a record this year by being the first country with a CTA that allows users to book free vaccine appointments via the ‘<a href="https://play.google.com/store/apps/details?id=bh.bahrain.corona.tracker&amp;hl=en_US&amp;gl=US" target="_blank" rel="noopener noreferrer">BeAware</a>’ app, even letting people choose between the Pfizer-BioNTech and Sinopharm vaccines. Bahrain quickly became the second mostst vaccinated country in the world after Israel.Here in Nepal, the government launched the ‘<a href="https://play.google.com/store/apps/details?id=np.com.naxa.covid19&amp;hl=ne&amp;gl=US" target="_blank" rel="noopener noreferrer">Hamro Swasthya</a>’ app to disseminate information about the pandemic. It is a collaboration between several IT startups and the Ministry of Health and Population to financially and technically support the government in developing an effective app.With over 300,000 app downloads and over 5 million site views, the app offers national Covid-19 updates, but not regional or local detailed information that would help people navigate their areas smartly. There is no guarantee of data privacy or any marketing campaign launched to promote the app’s usage.This lack of transparency and quality of software development is classic governmental mode of functioning. It is ticking the basic boxes and producing a low-cost, low-quality product that neither attracts nor engages the user with well-planned, well-designed communication.Hamro Swasthya is available in both English and Nepali, and the top feature is the Covid self-assessment test that is a questionnaire asking the user to fill personal information along with answers to questions about symptoms faced and recent travel (note: it does not ask for domestic travel history, only international) in order to make an educated guess on whether the user has contracted the virus or not.There is a section on plasma donation, with a form for both donors and those who require a blood donation. Another feature is the suspect report, where anybody can complain about anybody who they suspect is a Covid-positive individual. This feature is clearly not thoroughly thought out, as it can be easily misused.There is a nationwide map to guide people to the nearest hospital, but there is plenty of room of improvement regarding the UX/UI and information provided (lack of address and phone numbers). The best sign of a good app is how often it is improved and optimised. But as the government started rolling out vaccines, information regarding availability is missing in Hamro Swasthya.Saniaa Shah writes this fortnightly column, Tech-Away for Nepali Times. She runs Studio Aakar, a film production studio. Her marketing career helped her develop a keen interest in tech and digital culture.

Saniaa Shah

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Tap, Track, Trace and Test

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111011114/636ccd0f9c7e80680e08bc56jpeg.jpg" alt="" width="1500" height="845"/><figcaption></figcaption></figure>If we learned anything from 2020, it is that nothing is more important than keeping fit and addressing health issues to avoid compromising one’s immune system. Due to the lockdown and the pandemic, many people with health issues big and small did not or could not visit the doctor without the fear of getting infected. This gave rise to health and medical support apps that consolidate, modernise and disrupt the Nepali medical industry, all at once. Helping connect the public to doctors and hospitals via just a few screen taps, these apps are a boon to those who cannot travel easily or struggle to make time for their family’s or their own health. Here are a few of the many digital assisting apps that help us stay healthy and worry-free:Hamro Doctor<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.hamrodoctor.com" target="_blank" rel="noopener noreferrer">Hamro Doctor</a> is a super handy app that offers all kinds of medical support and informative services. These online consultations are quick, convenient and half the price you pay to visit doctors physically. They offer information, including but not limited to an index of doctors according to field of medicine, a detailed menu of health checkup packages offered by private hospitals and ambulance service contact listing. There are also blog articles posted by doctors and live chat forums where users can ask specific health questions to doctors.Dividing relevant health services into digital departments such as Coronavirus, Skin and Sex, Sugar, Thyroid and Heart, ENT, Cancer, and Women’s Health and Pregnancy, makes it convenient for users to search for immediate help in the concerned department of health. All this, without the hassle of waiting rooms, standing in queues, wasting time filling paperwork and at the billing counter, etc. Additionally, a health feed with news and updates, blood donation information services and a feature that allows uploading of medical reports are also available on the app.Not only does Hamro Doctor democratise and make expert medical support widely available for all Nepalis, it also makes socially awkward zones such as mental health problems and sex or genital related issues easier to address, thanks to the privacy and one-on-one direct nature of online consultation.Jeevee<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://jeevee.com/" target="_blank" rel="noopener noreferrer">Jeevee</a> is a professional, attractively designed one-stop health app that offers a range of health support services. The app offers online appointments and the option to upload your prescription to smoothly order medicines. A database of over 1000 doctors offers 100% online consultations. Jeeve also has a convenient e-commerce section with over 20,000 products such as medical devices, baby care products, personal care items, ayurvedic medicine, orthopedic accessories and dental care.In case the user has difficulty finding the concerned category, they can also use the search bar on top to find the product they’re looking for. Positive customer reviews confirm that Jeevee does not charge delivery fees, allows ordering from different vendors in the shopping cart and also offers competitive prices that are often cheaper than the nearest drug store.The Namaste Doctor feature has both free and pro (paid) models for patients to choose from, allowing them to consult with a doctor digitally without visiting them at their clinic. The pro version includes not 1 but 2 consultation sessions, 15 minutes of video calling, priority access, as well as lab and medical reports to make the consultation experience fully satisfying for the patient. Another useful feature of the app is the user’s ability to create profiles of themselves as well as their family members, and have access to their medical records and history all in one place.Cura Health<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://play.google.com/store/apps/details?id=com.curahealth&amp;hl=en&amp;gl=US" target="_blank" rel="noopener noreferrer">Cura Health</a> was built to make sure that people can seek medical help without losing out on valuable time, digitally via this app. The app is designed to bridge the gap between patients and medical professionals. Unlike other health and medical apps, users cannot enter the home page without registering or signing in, and providing all their vital statistics (height, weight, blood type, disease history, etc.), as well as an emergency contact number, a thoughtful touch that physical forms at hospitals make mandatory but other apps seem to have skipped.With no bugs and a smooth interface, this app is the epitome of simplicity. However, without an extensive main menu and comprehensive search bar, it leaves the user wanting. With time, after building a larger database of doctors and medical practitioners, this app has the potential to go a long way. Until then, Cura enjoys customer loyalty and appreciation with satisfying booking services that help patients skip lines at hospitals, thus helping save time every time they make a trip to the doctor’s.NepMeds<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepmeds.com.np" target="_blank" rel="noopener noreferrer">NepMeds</a> is a digital healthcare provider that is available on both web and mobile, offering medical shopping services and connecting users to doctors, laboratories, vaccination services, digital health record storage facilities, and tips on staying fit and happy. Currently, NepMeds operates in Kathmandu and Chitwan but aims to soon expand to other major cities of Nepal. NepMeds puts a focus on secure payment (128-bit SSL encryption) for e-shopping as well as affordable prices offered by reliable professional parties, to ensure customer satisfaction. The Health Library is a blog section that is filled with articles that bust myths, clear doubts, share benefits of certain foods - plus, keep the audience informed with knowledge on Coronavirus, dengue, fever and such super relevant health problems.In order to increase its number of users, NepMeds has a referral and rewards system that helps users earn wallet balance when they introduce others to the app. The app keeps updating its home feed with quick health tips, and also promises additional unique features that will get introduced soon, such as a medicine reminder, BMI measurement tool, and medicine refill hints to make sure users don’t miss a single day of regular medication.Drugs Nepal<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://play.google.com/store/apps/details?id=com.theanilpaudel.drugsnepal&amp;hl=ne&amp;gl=US" target="_blank" rel="noopener noreferrer">Drugs Nepal</a> is a brilliant simple single-purpose app that offers free, detailed information about thousands of drugs available in Nepal. Its main advantage is that it is available for offline use after the first time of loading the app, by storing all the information locally. The user needs to simply open up the app when connected to WiFi or mobile data and the updated information gets automatically synced for offline use again.This digital medicine directory allows users to search either by generic name or brand name of the drug. The directory looks appealing at first scroll, but the lack of information in the drug detail pages, like missing info or the word ‘NULL’ in certain categories, is admittedly disappointing. With improvement on the data entry side and minimum front-end tweaks, this purely informative app can be a less used but lightweight, to keep handy at all times. Because this app does not require two-way communication between parties and user inputs or information uploads yet, it is one-dimensional and uncomplicated.Hamro SwasthyaThe Ministry of Health and Population officially launched this app in April 2020 as a quick response measure to the global Coronavirus pandemic. It requests enabling of the Bluetooth feature to help improve contact tracing and track people who might accidentally spread Covid-19. It also offers a warning feature when the user is in close proximity to a device (individual), who is in the red zone.It has received criticism for only doing the base minimum of Coronavirus tracking, updating the app with daily new cases, offering a few mobile numbers and hotline number for emergency Covid-19 support, a Covid-19 self-assessment online automated test, and a plasma donation form section that allows both donors and requesters to fill necessary information to donate or receive. Many users have complained online that it is not a complete, comprehensive, efficient app that asks the right questions to ensure that users feed information that will prove useful and accurate.While the app is named <a href="https://play.google.com/store/apps/details?id=np.com.naxa.covid19&amp;hl=ne&amp;gl=US" target="_blank" rel="noopener noreferrer">Hamro Swasthya</a>, it is essentially only a Coronavirus tracking and information sharing app, which is rather misleading. Aside from this minor concern, the Hamro Swasthya app has potential to turn into a handy resource that offers online appointment booking at government hospitals and free digital services. The assumption that government-led initiatives are not as modern, efficient and professional as the private sector could be challenged by improving on the product to create a super health app that benefits the average Nepali in a way that private sector apps cannot.

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Nepal’s health-tech industry is here to stay

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

Visit Nepal in the monsoon

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

Not poor, but not rich

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

Nepal’s bubble economy

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

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