https://www.youtube.com/watch?v=3NZJcggr4FQ&amp;feature=youtu.be<a href="https://nepalitimes.atavist.com/feeling-groovy" target="_blank" rel="noopener">Hippies flocked to Nepal</a> in the 1960s and ’70s, drawn by the freedom to buy and smoke pot. But today, tourists are attracted by t-shirts, shawls and jackets made from the <a href="http://archive.nepalitimes.com/news.php?id=879#.XRSFXuszaUk" target="_blank" rel="noopener">marijuana plant</a>.While there are still weed pushers on the streets of Thamel trying to sell you a smoke, the tourist hub is now better known for designer apparel made from a blend of cannabis fibre and cotton.“In my business cannabis isn’t illegal. If cannabis was illegal then we wouldn’t have these products on sale,” says Yubaraj Timilsina, who started out as a vegetable vendor and now owns Hemp Headquarter, which manufactures and runs a wholesale shop for cannabis-based attire.Timilsina and others who deal in cannabis fabric source their products from western Nepal, where <a href="http://archive.nepalitimes.com/article/nation/marijuana-high-time-to-lift-ban,2548" target="_blank" rel="noopener">marijuana cultivation</a> is permitted for hemp production, under strict supervision of the local police. Western Nepal suffered greatly from the US-induced ban on cannabis in the 1970s, when already impoverished farmers were pushed into deeper poverty because of the loss of their cash crop.Read also: <a href="http://archive.nepalitimes.com/news.php?id=879#.XRSFXuszaUk" target="_blank" rel="noopener">Legalise it</a>, Alok Tumbahangphey<a href="https://archive.nepalitimes.com/article/nation/undo-hash-ban,3657" target="_blank" rel="noopener">Push to undo hash ban in Nepal</a>, Sahina Shrestha<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f09c7e80680e04d405jpeg.jpg" alt="" width="1400" height="933"/><figcaption>PHhotos: SONAM CHOEKYI LAMA/PEMA SHERPA</figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f39c7e80680e04d406jpeg.jpg" alt="" width="1400" height="933">On 26 June, International Day against Drug Abuse and Illicit Trafficking, instead of encouraging farmers to plant hemp and start a local industry, police are destroying plants in Tanahu and Chainpur.“The cannabis bushes grow in the wild, they are not cultivated, and we collect the stems from which the fibre is sourced,” says Baburam Bohra from Bajura, the district known to produce the healthiest cannabis plants.While the shrubs can grow up to 3m tall, those harvested for fibre are cut before they flower, which means they cannot be used for smoking. The stems are soaked in water for 10 days so that the outer layer peels off, making it easier for the pulp inside to be extracted.The raw plant tissue is then boiled with ash and washed multiple times to produce fibre. The whole process takes up to three weeks, giving one roll of fibre 3m in length. Hemp fibre is dark tan or brown and is difficult to bleach, but it can be dyed bright and dark colours.Read also:<a href="http://archive.nepalitimes.com/article/nation/marijuana-high-time-to-lift-ban,2548" target="_blank" rel="noopener">High time to lift ban</a>, Sarthak Mani SharmaThe fibre does not contain tetrahydrocannabinol (THC), the naturally occurring psychoactive compound that gives cannabis its narcotic property, so it will not, for example, alert sniffer dogs at airports.Clothing and bags made from 100% hemp fabric can cost up to Rs10,000 depending on their design and size. Yet production is still limited with those bags that are made going mostly to Australia, Spain and Canada, which have legalised marijuana to varying degrees.“I come to Nepal every six months to buy hemp bags to sell them in Spain,” says Nacho Baranas, who owns a shop in Barcelona featuring handicraft from all over the world, including Nepal.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f79c7e80680e04d407jpeg.jpg" alt="" width="640" height="746">Timilsina sells a variety of hemp-based products, including bags, shawls, shirts, trousers and yoga bags. “Foreigners like our hemp bags because they are durable and all-natural,” he says.Thamel trader Prem Dahal is acknowledged by his peers as the pioneer of the hemp trade. He was inspired to take it up 28 years ago after travelling with shepherds in western Nepal and finding that their hardy mattresses were woven from cannabis fibre.“Hemp fabric is stronger, more absorbent and has better insulation against heat and cold than cotton,” Dahal explains. “Hemp is environmentally friendly.”Given that half the <a href="http://archive.nepalitimes.com/article/nation/heavy-pesticide-use-and-low-consumer-awareness-affecting-public-health,1394" target="_blank" rel="noopener">pesticide</a> sprayed worldwide is in cotton plantations, hemp is a nature-friendly alternative fabric. The plant also prevents soil erosion on mountain slopes because of its thick deep root system, and the fabric can be made into at least 100 types of products.“If hemp was fully legal, and allowed to be grown on an industrial scale, it would be as valuable as gold,” says Dahal, who is critical of MPs from western Nepal who do not <a href="https://archive.nepalitimes.com/article/nation/undo-hash-ban,3657" target="_blank" rel="noopener">push for the legalisation of marijuana</a>, which would be a rare job booster.Timilsina sells up to 400 hemp bags per month, but sees another threat on the horizon: cheaper Chinese bags.<h2>Social fabric</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46f99c7e80680e04d408jpeg.jpg" alt="" width="1400" height="933">A blend of fabrics from the Himalaya with creative patterns and effective marketing have made Nepal’s hemp-based products trendy in designer stores in Europe, North America and Japan.For the past 20 years, <a href="http://archive.nepalitimes.com/blogs/thebrief/2017/05/03/sixth-sense-success/" target="_blank" rel="noopener">Karuna Natural Wears</a> has been exporting high quality clothes blending hemp with other natural fibres like nettles, aloe and bamboo designed for durability and comfort.“The reason hemp textiles are popular among our customers here and abroad is that they are comfortable, suitable for people with sensitive skin, they are naturally resistant to UV rays, the design to holds shape well and stretches less,” explains designer Nabina Maharjan.Indeed, the hemp clothing on display at Karuna’s store in Darbar Marg and Lazimpat, and Juju in Jhamsikhel in their subdued earthy colours and tastefully rendered minimalist traditional patterns, are soft to the touch. There are t-shirts, pants, skirts and a whole range of bags and other hemp-based products.Although the hemp fabric is mainly sourced from western Nepal, the quality and supply was not reliable enough and Karuna now imports some raw material from China and India.Most in demand at Karuna and Juju stores are apparel from blended fabric, and although they are slightly more expensive, the hemp-cotton fabric is the most popular.Sonam Choekyi Lama<h2>Green Gold</h2>In 1976, after American youth started flocking to Nepal by the thousands attracted by cheap and legal pot, Nepal was forced by the US government to ban the use and sale of marijuana.This threw thousands of farmers out of work, and made impoverished western Nepal even poorer. Today, while US states are legalising marijuana it still remains banned in Nepal.Ravi Pradhan is a Nepali consultant who has been advising the Cambodian government on legalising marijuana. He says it is absurd that the US government still classifies marijuana as a narcotic drug when experts agree on its <a href="http://archive.nepalitimes.com/news.php?id=17997#.XRSFWeszaUk" target="_blank" rel="noopener">medicinal properties and therapeutic effects</a>. “For Nepali farmers it can be a green gold,” Pradhan told a recent conference in Kathmandu on legalising marijuana.Nepal’s Narcotics Drugs Control Act allows the use of the wildly grown cannabis plant, but it is vague and confusing, and its enforcement even more arbitrary. Activists are now pushing for legalisation of hemp cultivation so that plants can be used to make fabric, and – that battle won – they say want to shift their focus to legalising ganja for medical use and even recreational consumption.The activists’ approach is to clearly show the difference between hemp and marijuana. Although they are both derived from the cannabis plant, their morphology, properties and uses are different.Marijuana is a variety of cannabis that contains tetrahydrocannabinol (THC). Hemp, on the other hand, is a non-psychoactive variety of the cannabis plant. Because the leaves look like marijuana, however, most people cannot tell the difference.Sales of hemp products worldwide are expected to reach $2.6 billion by 2022, with China being the world’s largest exporter. Hemp production in Nepal is not banned, but is limited. For example, businesses can only use wild plants.Although marijuana is classified as a narcotic drug, the oil is used traditionally as a muscle relaxant, the leaves are made into chutney, and it is an active ingredient in many ayurvedic products.Pawan Joshi produces hemp oil called Dava, which contains Omega 3 and 6. He says: “It is totally legal to produce the hemp oil as the hemp seeds are legal and the oil doesn’t get you high. We now need across-the-board legalisation of hemp.”<h2>POT VOCAB</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46fc9c7e80680e04d409jpeg.jpg" alt="" width="1400" height="933">Marijuana: Psychoactive drug made from the dried leaves and flowers of the Cannabis plant, contains tetrahydrocannabinol (THC). Also known as weed, pot, grass, Mary Jane.Hemp: A variety of Cannabis plant that grows up to 3m tall and contains less than 0.3% of THC. Fibre is used to  make clothing and bags (see large story).Ganja: Marijuana in Nepali, Hindi and Sanskrit, used to denote both the drug and the Cannabis plant.Bhang: Edible form of marijuana made by crushing green leaves and buds of the Cannabis plant. Smoked and eaten at festival time in Nepal.Hashish: Also known as charas in the Subcontinent, is the resin made from rubbing Cannabis flowers and top leaves.<h2>Wearing paper</h2><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a46ff9c7e80680e04d40ajpeg.jpg" alt="" width="1400" height="1360"><a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=5642#.XRSFdOszaUk" target="_blank" rel="noopener">Traditional Nepali paper</a> made from the bark of the lokta plant is used for legal documents because they are insect resistant. Now, one company in Nepal is also making shirts and jackets from the paper.<a href="http://archive.nepalitimes.com/news.php?id=3860#.XRSFd-szaUk" target="_blank" rel="noopener">Lokta pulp</a> sourced from the mountains of Myagdi district are processed and pulled out into lokta thread which are then interwoven with other fabric like cotton or hemp to make items of clothing, cushions, tote bags and placemats.“We decided to experiment and do something different, and thought why not use lokta also for fabric and not just for <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Putting-it-down-on-paper-nepali,3750" target="_blank" rel="noopener">paper products</a>,” says Rita Bhandari of Nepal Paper Crafts, which has been exporting Nepali paper products.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110813118/636a47029c7e80680e04d40bjpeg.jpg" alt="" width="1400" height="401">Bhandari collaborated with the Netherlands-based designer Janske Megens with whom she was the recipient of the Dutch Design Award 2008 for innovation and simplicity of design for Paper Text Cushion. Nepali paper clothing is most popular in Holland.“Lokta fabric is strong, can easily be dyed, printed, embroidered and washed. It will not get brittle with age and has natural insect repellent properties,” adds Bhandari.Paper cloth is made from lokta thread as weft and weaved with allo, silk, cotton, hemp, wool fabric as warp. The warp on the cloth depends on customers’ order, and the whole process is natural and handmade which is their unique selling point.“They are popular in the West because it is all natural, the clothings are cool in summer and warm in winter,” says Bhandari, who is now exploring a larger international market for Made in Nepal paper fabric.Pema Sherpa

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Clothed in cannabis in Kathmandu

It is only April, and Himalayan expeditions are already making rotations to acclimatise on Annapurna and Dhaulagiri, and will soon be making summit pushes.&nbsp; On Mt Everest, Icefall Doctors are fixing ropes and ladders into the Western Cwm as international climbers arrive at Base Camp. Spring 2026 is going to be the busiest and most crowded so far in the Nepal Himalaya. The main reason is that China has closed expeditions from the north side for eight-thousanders Everest and Cho Oyu, and also Xixapangma.&nbsp; The closure is informal, from what one can make out. The Chinese have not put out any official statement, but there are no permits either. The reason seemingly was the ‘Rising Dragon’ firework display last September by pyrotechnic artist Cai Guo-Qiang near Xigatse.&nbsp; Working with outdoor wear company Arc’teryx, Guo-Qiang set off an impressive sequence of orange and white fireworks that wound up a mountain. The spectacular display was criticised for damaging the fragile ecology of the Tibetan Plateau. But this cannot be the only reason the north side is closed. Experienced Everest blogger Alan Arnette anticipates that about 125 climbers will shift to the Nepal side of the mountains, and expects there to be up to 900 summits this spring — up from the highest spring number so far of 876 climbers on top in 2019.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082.jpg" data-media-id="editor_0" data-image-id="20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="mountaineering"> <figcaption>Photo: KARMA TENZING</figcaption> </figure>  The early Base Camp arrivals are having problems with their first rotations because of heavy snow this season. Unlike previous springs, this year has seen back-to-back blizzards at high altitudes since February. The increased snow load on the slopes have increased avalanche danger right across the mountains.&nbsp; There has been an increase in numbers on Everest despite the West Asia war, flight disruptions, LPG shortage and new regulations. The permit fee has gone up for the first time since 2015 from $11,000 to $15,000 this year.&nbsp; The Tourism Bill passed by Nepal’s Upper House last year would have required climbers to have first summitted a 7,000m peak in Nepal before attempting Everest. However, the Department of Tourism has confirmed that there are no new experience requirements this season. Some want this rule changed to include 7,000m peaks anywhere in the world. That could be one reason people are rushing to climb Everest before the Nepal government changes its mind and enforces the new regulations on prior experience on Everest. “It’s probably going to encourage a lot of people that simply are not ready to go,” reckons Alan Arnette. “Once again, we may see a lot of inexperienced people on the mountain trying to get in before the rule comes into place, if it does.”&nbsp; Arnette has always been sceptical of Everest regulations, and points out many instances where rules have been announced but not implemented over the ten years that he has been tracking them. For example, a helicopter ban to Everest Base Camp was announced last year, but rescinded. A rule requiring climbers to bring down waste was never seriously enforced. Since there is so much money involved for the government and for the operators, any any rule that would reduce revenue is never fully implemented. This year there is another ‘High-Altitude Trash Quota’ rule requiring climbers and guides operating above Camp 2 to collect and bring down at least 2kg of waste from the higher camps.&nbsp; The Nepal government has tried to diversify peaks on offer by reducing the royalty on climbs, but the draw of Everest, Annapurna and other eight-thousanders seems to be too great. Even when the permit fees for some remote peaks like Kangri Shar, Himlung and Api, were reduced to $400, there are few takers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d.jpg" data-media-id="editor_1" data-image-id="20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Photo Damien Francois"> <figcaption>Photo: DAMIEN FRANCOIS</figcaption> </figure>  TIME LAPSE Clients and expedition operators have been trying to shorten the time needed to complete an Everest expedition from the city of origin to the top and back. Since Nepal has no rules about spending a certain number of days in acclimatisation, this has allowed some expedition organisers to use new technology.&nbsp; Austrian operator Lukas Furtenbach last May led a group of four British ex-military clients to the summit within a week of leaving London. This climb was scrutinised because the group had practiced breathing xenon gas, a substance that increases the count of red blood cells and is banned in competitive sports. The climbers had also trained for months at home in hypoxic tents, and used supplemental oxygen during the actual climb.&nbsp; The success of that expedition prompted an investigation by Nepal’s Ministry of Culture, Tourism, and Civil Aviation, but there was nothing it could do because the team had taken the xenon in Germany two weeks before their trip. But even if they had administered the gas in Nepal, it would technically not be illegal. Furtenbach is firmly in favour of speed, and of using the gas. “The only reason why we are working with xenon is to make climbing safer, to protect climbers from high altitude sickness,” he says, arguing that the less time climbers spend on the mountains, the less their exposure is to disasters, sickness, and they also generate less trash.&nbsp; His firm, Furtenbach Adventure, offers a three-week Everest South Flash expedition, at a cost of €100,000, using custom oxygen systems. Other expeditions take up to two months.&nbsp; A young American duo of Ryan Mitchell and Justin Sockett got to Everest Base Camp five days ago. They are preparing for an oxygen-free summit attempt.&nbsp; ‘ Being around these mountains for one day has already brought me so much joy. Every time I come back to the Khumbu I feel more familiar and connected,’ posted Mitchell. He and Sockett have since summitted Lobuche East (6,119m) as they continue to acclimatise and wait for the Khumbu Icefall route to be fixed.&nbsp; There are other sans-O2 trips planned this climbing season in Nepal. Norwegian Kristin Harila, the fastest in the world to climb all 14 8,000ers (in 92 days), is attempting the Nuptse, Lhotse, and Everest three-peak climb without supplemental oxygen. American Tyler Andrews and Ecuadorian Karl Egloff are continuing their race to break records in Everest. While Andrews is attempting the Fastest Known Time from Base Camp to the top without oxygen, Egloff is taking it a step further and going for a round trip: from Base Camp to the summit and back in record time.&nbsp; Both Egloff and Andrews had attempted these climbs in 2025 spring, but abandoned around 7,000m due to bad weather.&nbsp; Kami Rita Sherpa wants to extend his all-time record of total Everest summits to 32, while Kenton Cool from England is chasing 20, a non-Nepali record.&nbsp; The first summits of the season will be in late April, or early May depending on weather. Besides Everest, there are a lot of interesting climbs on lesser known peaks.&nbsp; The Japanese trio of Masayuki Takenaka, Tatsuro Sugimoto, and Ryota Nomura, for example, are attempting the unclimbed Jarkya Himal (6,473m) near Manaslu. &nbsp;&nbsp; <h2>Fake rescues</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6.jpg" data-media-id="editor_2" data-image-id="20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6" data-rendition-name="original" width="800" height="519" loading="lazy" alt="Fake rescues"> </figure>  This year’s spring climbing season has coincided with Nepal’s new government taking action against alleged perpetrators in fake rescues and insurance fraud. The Central Investigation Bureau (CIB) has already arrested more than a dozen trekking agency executives, hospital managers and helicopter company executives for medevac insurance fraud. Climbers are known to fabricate medical emergencies, get flown down from as high as Camp II on Everest, and then submit false insurance claims.&nbsp; Sometimes one flight is made to look like many using fake invoices. Trekking companies are also involved in fake rescues of hikers who just get tired of walking.&nbsp; Too many fake claims could lead to insurer’s losing confidence in the industry, and increased premiums, leading to delayed responses in real accidents.&nbsp; As a result of the scandal, there is now more scrutiny from the government about rescues. Already, helicopter operators have to wait for permission before carrying out rescues while their application is vetted.&nbsp; The worry is that this could cause unnecessary delays when time is of the essence in mountain rescue. Already, medevacs are delayed because of the bureaucracy needing permits to fly to sensitive regions bordering China. Last year, a climber died on Himlung because helicopter rescue took too long while operators ran from door to door in Kathmandu to obtain necessary permits. <h2>Mingma David Sherpa, MP</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25.jpg" data-media-id="editor_3" data-image-id="20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25" data-rendition-name="original" width="960" height="958" loading="lazy" alt="Mingma David Sherpa"> </figure>  Meet Mingma David Sherpa, Nepal’s first mountaineer to be nominated to Parliament. Sherpa is a self-made professional climber from Rolwaling, who rose up from an expedition porter to a record-breaking mountaineer and expedition organiser. As an insider, he is now in a position to streamline laws related to Nepal’s trekking and mountaineering sector. He is co-owner of EliteExped with Nims Purja, and in 2021 the two were part of a team of Nepali climbers to be the first to make it to the top of K2 in winter, the second highest mountain in the world in Pakistan.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54.png" data-media-id="editor_4" data-image-id="20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54" data-rendition-name="original" width="2082" height="1396" loading="lazy" alt="Mingama David Sherpa"> </figure>  Mingma David was also on Purja’s Project Possible to climb all the 14 eight-thousanders in six months, shattering the previous record of seven years. He was featured in Purja’s documentary 14 Peaks: Nothing is Impossible.&nbsp; At age 30 he became the youngest climber to reach the top of all 14 eight-thousanders for which he was awarded the Piolet d’Or. Mingma David has taken part in dozens of successful rescues of fellow climber, including the highest ever long-line rescue on Dhaulagiri and saving the life of fellow-climber from 8,600m on Everest. <h2>April Fool</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4.jpg" data-media-id="editor_5" data-image-id="20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4" data-rendition-name="original" width="1365" height="1820" loading="lazy" alt="Furtenback Adventures"> </figure>  The Austrian expedition outfitting company Furtenbach Adventures spoofed the anticipated crowds on an April First post on social media this week, showing ‘a fully galvanized, weather-resistant steel staircase, complete with a sturdy handrail’ to make the Hillary Step bottleneck on Mt Everest less dangerous.

Nepal Himalaya Spring 2026

Samsung Nepal has opened pre-orders for the Galaxy A57 5G and A37 5G. Both phones run Samsung’s One UI 8.5, featuring AI capabilities like voice transcription, Circle to Search, and photo editing. They feature a 50MP triple-camera system, a Super AMOLED display, and six years of OS and security updates.

Galaxy A series

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

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