<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208569c7e80680e0b54dfjpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Land being plotted in KAthmandu's Sankhu for sale. Photos: AMIT MACHAMASI</figcaption></figure><ul><li>A two-bedroom 185 sq m flat in an apartment block in Hatiban is on sale for Rs8.5 million. An average Nepali civil servant who earns Rs36,000 a month would need 20 years worth of salary to be able to afford it.</li> <li>Just to buy a plot of land to build a small house in the same locality of Lalitpur costs Rs16 million, for which the civil servant would have to pay a lump sum worth 37 years of salary earnings.</li> <li>A small plot of land by the highway bought 20 years ago in Bhaktapur is worth an astounding 7,000% more today. Even considering the devaluation of the Nepali rupee, that is sky-high appreciation.</li> <li>Another plot 4km off the Ring Road in Kathmandu that cost Rs10 million five years ago is now worth Rs50 million.</li> <li>A property in Kathmandu’s prime Darbar Marg area recent sold for Rs90 million ($750,000) per 33 sq m. This is one of the highest real estate values in the world.</li> <li>A house with land that was bought for Rs20 million in Tinkune six years ago sold for Rs80 million recently.</li></ul>A Nepal Rastra Bank report this year shows that <a href="https://www.nepalitimes.com/opinion/home-is-where-the-heart-is/" target="_blank" rel="noopener noreferrer">property value in Kathmandu Valley</a> is increasing at 27.7% a year, doubling real estate value every 3.5 years. This is despite average salaries in Nepal increasing by only 7.45% per year.Property value appreciation is even higher in other urban areas of Nepal, especially in Madhes Province and the Tarai towns of Far West Province. The price of real estate is doubling every two to three years here because of the soaring demand for land due to migration to the cities, plains and valleys from the mountain districts.There was a prediction that <a href="https://www.nepalitimes.com/here-now/kathmandu-creeps-up-surrounding-mountains/" target="_blank" rel="noopener noreferrer">Kathmandu’s property values</a> would decline after the 2015 earthquake, but the opposite has happened. Despite the government valuation for the property being much lower, land transactions are taking place arbitrarily, with no scientific basis for real value, or linked to productivity.Economists say there are many factors driving this real estate bubble in Nepal. Kathmandu Valley’s urbanisation pressure increased after free market forces were unleashed following the changes in the early 1990s, and people from across the country streamed into Kathmandu for education and jobs. The 1996-2006 conflict exacerbated this trend as people fled the fighting in the hinterland.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208599c7e80680e0b54e0jpeg.jpg" alt="" width="1500" height="1001"><figcaption> </figcaption></figure>This process further accelerated further after 2006, and surveys have shown that one-third of all Nepalis have now moved away from the place where they were born. <a href="https://www.nepalitimes.com/banner/nepalis-moving-from-mountains-to-plains/" target="_blank" rel="noopener noreferrer">Domestic migration</a> is  highest in Bagmati Province where Kathmandu Valley is situated, and where 47.3% of the residents are recent arrivals from outside. The percentage for Gandaki where Pokhara is located is also a high 40.2%, while Province 1 has 38.9% of its population from outside – mainly in the densely-populated Jhapa plains.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/paddy-planting-replaced-by-real-estate,3833" target="_blank" rel="noopener noreferrer">Fuelled by remittance income</a>, this influx led directly to a steep rise in land prices. Adding to this is the unregulated loan disbursement by the banking sector which fuelled land transactions – leading directly to property speculation. This in turn tempted people with cash to convert it into real estate investment – leading to the indiscriminate ‘plotting’ of prime agricultural land in Kathmandu, Pokhara, Chitwan and other urban centres.Real estate transactions do not need to be routed through companies, and since anyone can be involved, this has opened up opportunities for buying and selling by bankers, politicians contractors and others who have inside information on future infrastructure projects. Even the Nepal Army is involved in real estate business, turning its property in Kirtipur into a housing colony.<a style="font-size: 15px; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=15834#.Yf3eCy2B3ow" target="_blank" rel="noopener noreferrer">Banks are in on</a> this unregulated real estate speculation. They have distributed loans worth Rs516 billion, which is a full 11% of their entire portfolios. More than 16% of overdraft facilities also mostly go for real estate transactions. Two-thirds of all loans have property as collateral. Even loans given for agriculture are diverted to property market. In the past three years, there has been a 60% increase in loans for agriculture projects, but neither farm production not productivity have not gone up in that period.In fact, one of the reasons for the liquidity crisis in the banking sector today is due to over-lending for land loans. These loans are not invested in productive sectors, they do not create jobs, or contribute to the economy. They just recycle cash, creating nothing but capital gain for those for whom gambling in real estate is a fulltime occupation.This trend is driven by unbridled greed which the government and the regulators are unable or unwilling to control because they themselves benefit from it. The end result is that it has distorted Nepal’s economy and created a vicious cycle, with the danger that the artificial bubble could burst at any time.Former finance secretary Rameshore Khanal says that most governments try to regulate the property market to make housing affordable to citizens, as well as to manage urbanisation.Read also: <a href="https://www.nepalitimes.com/banner/nepal-struggles-to-balance-nature-and-industry/" target="_blank" rel="noopener noreferrer">Nepal struggles to balance nature and industries</a>, Ramesh Kumar“As long as banks are careful about giving out loans for land, property prices can be kept in check,” Khanal says. “In fact Nepal Rastra Bank should immediately stop allowing borrowers to put land as collateral to buy more land, and for home owners to get a loan to amass more property – because it is an abuse of the savings that citizens deposit in banks.”However, the central bank is unlikely to agree to such measures because its own officials have too much personal interest tied up with real estate. A private bank official who sanctioned a loan for a housing colony in Bhaisepati recently bought a lucrative 1 ropani plot for himself. Without any extra effort, and with low capital gains tax, it made sense for him to make the personal investment even though there was a clear conflict of interest.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/6372085c9c7e80680e0b54e1jpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>Nepal Rastra Bank governor Maha Prasad Adhikari himself has invested in property in Lalipur, Jhapa, Heatuda and elsewhere. Ministers, ex-ministers, politicians, senior civil servants and Supreme Court justices own property that exceed the land ownership ceiling.The unrealistic price of land has impacted on the government’s infrastructure development plans and private sector investment in hydropower, and other projects. It is now established practice for land owners, speculators, middle men and the land mafia to milk the government in infrastructure projects.Read also: <a href="https://www.nepalitimes.com/banner/hiding-their-head-in-the-sand/" target="_blank" rel="noopener noreferrer">Hiding their head in the sand</a>, Ramu SapkotaThe government spends Rs 20 billion or more every year just in acquiring land for infrastructure projects. Bhairawa International Airport cost only Rs7 billion to build, but the government had to pay out Rs23.58 billion just in acquiring land for the project. Even the 2.38 km Nagdhunga Tunnel project has had to pay as much as Rs4.2 million per ana (33 sq m) of land.Twenty years ago, during his second tenure as prime minister, Sher Bahadur Deuba got Parliament to announce a ground-breaking lowering of the threshold for land ownership, and also stipulated that land should be used for none other than the designated purpose. The law was never properly implemented, and to date the government does not even have a unified database of land ownership in the country.The real estate bubble is so lucrative that most companies that have gone bankrupt because of falling business have managed to stay afloat because of the increased value of the property they own. Nepal has been growing at an average of 4% a year for the past two decades, but this is not reflected in manufacturing or productivity.“Unless we stop this vicious cycle and prevent investment in real estate speculation that is supposed to go into the productive sector, the bubble in Nepal’s economy is going to burst sooner or later,” says economist Dilli Raj Khanal.Those with ancestral property in the city centre, and those specialising in buying and selling real estate have become overnight billionaires. This is feeding the market in luxury items, mainly SUVs. In the past four months of the last fiscal year alone, despite an economic downturn, Nepal imported Rs57 billion worth of vehicles and spare parts.Imports have now risen so sharply in the past two years at a time when exports and remittances have fallen, that Nepal’s hard currency reserves have declined to their lowest level in decades, and able to finance only 6 months worth of imports. This, in turn, has increased the income gap between the poorest and richest Nepalis.Although there are no figures to prove that the gap between the have’s and have not’s has grown in Nepal, it is clear that the astronomical profits that can be made from real estate transactions have made a limited number of Nepalis extremely wealthy.One of the reasons for the real estate bubble is that the tax on land transactions in Nepal is so low. In fact, if a land is sold within five years of being bought, the seller only has to pay 5% of the capital gain tax to the government. If the land is sold after more than five years, the tax is only 2.5%. Compare this to income tax up to 36% that individuals pay in Nepal, and there is a transaction fee of 25% in most businesses.Read also: <a href="https://www.nepalitimes.com/here-now/ground-reality-of-landlessness-in-nepal/" target="_blank" rel="noopener noreferrer">Ground reality of landlessness in Nepal</a>, Rabi GiriThis is besides the tendency to bribe officials to undervalue the rate at which property is sold, so as to reduce the taxable amount. In fact staff at the land tax office as what the “unofficial” amount for property sales is, presuming that it is undervalued.“Raising the tax rate for real estate transactions will immediately discourage property speculators, reduce the number of transactions, and put a check on the runaway increase in land prices,” admits Gunakar Bhatta of Nepal Rastra Bank.The reason property transactions have not gone down despite sky-rocketing real estate prices is that Nepal’s economy is run mainly through informal channels. Many unscrupulous businesses are cashing in on a weak state to get rich quick, and investing their ill-gotten wealth by laundering it through real estate.In fact the reason for the abnormal rise in land prices is the lack of state regulation, corruption and self-interest at high levels of government, says economic professor Achyut Wagle. “Real estate has become the ideal venue to park wealth earned through corruption, so that even people who do not really need land are investing in it,” he adds. “And since one does not need to work anymore to get rich quick, the real estate speculation has also killed entrepreneurship.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208609c7e80680e0b54e2jpeg.jpg" alt="" width="1500" height="1001"><figcaption> </figcaption></figure>One recent example of just how high up the rot has gone is the Lalita Niwas scam at Baluwatar where government property was transferred to private ownership with collusion between the real estate mafia and senior politicians. Another is the example of real estate tycoon Ikshya Tamang who allegedly cheated hundreds of investors but was never prosecuted by the UML government of which he was a nominated MP.In his previous tenure as prime minister Sher Bahadur Deuba allowed Gopal Dahit to lift a ban on fragmentation of agriculture land for housing colonies. A lot of money is said to have changed hands to allow this law to be passed. When K P Oli was prime minister, his Land Management Minister Padma Kumari Aryal lifted the ban on turning agriculture land into housing colonies, if a local  government office certified that it was not used for farming.Read also: <a href="https://www.nepalitimes.com/here-now/owning-land-gives-former-slaves-self-respect/" target="_blank" rel="noopener noreferrer">Owning land gives former slaves self-respect</a>, Unnati ChaudharyThe Supreme Court ruled last year not to allow the fragmentation of land holdings for housing colonies, but in reality it never stopped. In fact just in the past year, there have been more than 500,000 new property ownership certificates distributed by dividing larger holdings. Corrupt officials are even demanding under the table payments to approve property sales where dividing up a property is legitimate.The standard operating procedure at the land tax office is that most of these transactions go through only after money exchanges hands under the table.What is the solution?Most economists agree that tightening the process through which banks finance land purchases can burst the bubble on real estate prices. For example, a house owner should not be given a loan to buy more than one property.Sujeev Shakya of the Nepal Economic Forum agrees that buying house or property other than the one a person is living in should be taxed heavily. He has another idea: slap an inheritance tax on property that is passed down from one generation to the next, as is the practice in other countries.The other measure would be a hefty increase in the currently nominal land transaction tax. “How can it be that a person who earns a living through hard work pays 36% income tax while profit from selling property is only 2.5%-5%?” asks chartered accountant Seshmani Dahal, adding that other measures like enforcing banking transactions for land sales should also be taken to ensure that the sale is not deliberately undervalued to lessen the tax amount.A lot of the unregulated buying and selling of land and speculation would also be curbed if proper urban planning is strictly enforced. Only after utilities and other facilities are installed should an area be opened for residence.The government should also be involved in building and establishing affordable housing for middle income families. The Constitution establishes the right of all citizens for decent housing, and it is up to the government to fulfill that pledge.

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Kathmandu’s unreal real estate prices

Rivers have been the lifelines of civilisations with their dynamic ecosystems providing vital services for human survival and ecological balance through the ages.&nbsp; But accelerating anthropocentric footprints are causing severe, and often irreversible, damage to river systems across the world, including those across High Asia, a region that sustains nearly a fourth of the global population downstream. An example is the <a href="https://nepalitimes.com/here-now/how-the-bagmati-civilisation-is-becoming-uncivilised" target="_blank">Bagmati River</a> that courses through Kathmandu, crosses the Himalayan foothills to join the Ganga in India. A river that once shaped the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/when-it-comes-to-water-pollution,3196" target="_blank">Kathmandu Valley Civilisation </a>is now a polluted and biologically dead water body constricted by urban sprawl, choked by construction debris, chemical waste and untreated sewage.&nbsp; The loss of a sacred river is tragic enough, but its hazards related to health, life and livelihoods are not limited to the Valley, nor is its enormity fully gauged by the metrics of fatality, income loss, flood return periods, runoffs, embankment failure.&nbsp; It is a systemic collapse of ecological integrity, socio-economic stability and cultural heritage, affecting its downstream users as well. The death of Bagmati is a peril for a population size way bigger than circa 5 million residents of Kathmandu Valley. The degradation started in the 1980s and has accelerated. Why has not enough been done to save this iconic river that runs through Nepal’s capital?&nbsp; The Bagmati River Basin Improvement Project (BRBIP) was designed to make headway in restoring the river with a sewage treatment plant, dams for storing water to support dry-season runoff, recharge groundwater, creation of <a href="https://archive.nepalitimes.com/page/resurrecting-bagmati-the-river" target="_blank">green biodiversity corridors</a> along the river bank to also serve as recreation areas, reduce the urban heat island effect, and also provide cultural continuity. The project also envisages collection of hydrological data for managing Bagmati multipurposewater systems and providing flood forecasts and early warnings aimed at protecting lives and property, among other things. Most importantly, the project takes the integrated water resource management approach, which, in principle, is a holistic and collaborative way of managing all elements of the water cycle to ensure water security, public and environmental health and amenity.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c.jpg" data-media-id="editor_3" data-image-id="20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c" data-rendition-name="original" width="2126" height="1577" loading="lazy" alt="Bagmati NT"> </figure>  This should pave the way for managing a river as a connected ecological, social, and economic system by enabling coordination across agencies and disciplines, stimulating technological innovation and financial investment. The success of this approach depends on long-term political will and commitment that transcend political cycles, but also needs strong community and civil society in defining issues and proposing solutions, creating and sharing knowledge, taking independent action to inform practice, monitoring and evaluating policies, and participating in public decision-making. Civil society, especially, in making the <a href="https://archive.nepalitimes.com/page/encounter-with-bagmati-river" target="_blank">revival of the Bagmati River</a> a pressing governance issue. The Bagmati Action Plan 2009, a precursor to the BRBIP, was designed in response to lawsuits filed in 2000 and 2004 by an independent legal practitioner of Kathmandu against waste dumping in the river.&nbsp; It took him almost two decades of legal battle for Nepal’s Supreme Court to pass orders for mandatory septic tanks in all homes in Kathmandu Valley, relocation of squatters from Bagmati river banks to government-built houses, and embargo on dumping and burying garbage on the banks of the river and its tributaries. Despite court orders, however, actual results have been unsatisfactory. Restoration of Bagmati barely made it to any political debate or electoral manifesto this time. Treatment plants have not been operational for years, yet no one is held accountable. The population ignores waste segregation or single-use plastic rules to check littering.&nbsp; The current condition of the river therefore seems to have more to do with the lack of public awareness and behaviour change than the failure of various master plans. Why does the deep danger of a dead river fail to arouse widespread civil society concern, let alone action? The apathy is perhaps underlined by an innately anthropocentric understanding of the river as a mere resource to be exploited, rather than the backbone of existence.&nbsp; Such a paradigm shift is possible when river or river systems are understood to be necessary for &nbsp;a harmonious coexistence with human populations. The more pertinent question is not whether a dead river can be restored because there are many examples from around the world where that has been successfully achieved. It is whether we choose to restore our rivers for intergenerational equity. This would require a holistic perspective and political will to revive reverence for a river system so that its symbiotic relationship with human settlements can be restored. Roshni Gurung is Research Assistant, River Basins at the International Centre for Integrated Mountain Development (ICIMOD).

A lifeline becomes liability

Nepal’s new government hit the ground running with the arrests of former Prime Minister K P Oli and home Minister Ramesh Lekhak early Saturday morning.&nbsp;
Their dramatic detentions followed an inquiry commission report recommending that Lekhak, Oli, and former Police chief Chandra Kuber Khapung be investigated and prosecuted for negligence in failing to stop the killing of 19 young protesters by security forces during the protests on 8 September.&nbsp;
Interim PM Sushila Karki’s government faced considerable criticism from GenZ activists at the end of her 7-month tenure for failing to release the report and hold the previous UML-NC coalition to account.&nbsp;
Karki had left any decision on the report’s findings to new RSP government, but her government released it after the content was leaked earlier this week, a day before Nepal’s newly elected lawmakers took their oath of office.
By making the arrests of Oli and Lekhak as its first order of business, the new government, and especially Home Minister Sudan Gurung and Prime Minister Balendra Shah, have tried to show that they are decisive and mean business.&nbsp;
It has been hailed by many as signalling that Nepal’s new and young leadership will back up its pledges with action. However, others including the UML and some constitutional experts, say that the arrests have not followed legal procedures. The UML has mobilised its affiliated groups to start nationwide street protests.&nbsp;
The main divide seems to be over the perception that the new government is only interested in justice for the perpetrators of the 8 September Parliament massacre, and not against those who organised arson and vandalism of government buildings, homes of politicians, businesses and the media the next day.&nbsp;
While some celebrate what they see as the beginning of justice for the victims and survivors of the September violence, political analysts and legal experts express alarm over a lack of adherence to the rule of law.&nbsp;
K P Oli has a lot of experience being behind bars. He was jailed a dozen times in 1970s by the Panchayat regime for his extreme left activism and then spent 14 years in prison between 1974-1988.
Critics argue that the former leaders were denied due process and label their arrest a “political vendetta."
RSP supporters had made similar arguments in October 2024 and April 2025 that the arrest of party chair Rabi Lamichhane over misappropriation of funds from numerous cooperatives were &nbsp;politically motivated.
‘What is happening is unacceptable,’ wrote former minister and diplomat Nilamber Acharya wrote on Saturday morning. ‘Such acts of revenge and crackdowns do not bode well.’
In response to accusations of the arrests being partisan and politically-motivated, Home Minister Sudan Gurung took to social media, saying that the new government is fulfilling its promises: ‘No one is above the law,’ he wrote. ‘This is not revenge, it is the beginning of justice. I believe now that the nation will now take a new direction.’
There is also concern the new leadership has jumped the gun to implement the findings of the inquiry commission, which has itself been criticised in some quarters for concentrating on the events of 8 September rather than investigating the perpetrators of the anarchy on 9 September.&nbsp;
The first meeting of the Council of Ministers made the immediate implementation of the GenZ Movement Inquiry Report its first priority.
But there are questions as to whether the execution of the report will be impartial. Home Minister Gurung will now dictate how the recommendations &nbsp;will be conducted, since he is himself referenced in the report in connection with the unrest on 9 September.&nbsp;
In fact, the report also outlines how supporters stormed Nakhu Prison on 9 September to organise Rabi Lamichhane’s jailbreak. Will Minister Gurung also go after his own party's leadership? &nbsp;
With the UML already calling for nationwide protests against the detention of its leaders, there is concern that Nepal is plunging straight into turmoil instead of stability.
The UML leadership has been unrepentant about the 8 September events. Oli has defiantly blamed infiltration and outside forces for the killings, and unlike the Nepali Congress the UML has not managed its own leadership changeover.&nbsp;
The NC under Gagan Thapa as well as the Nepali Communist Party of Maoist leader Pushpa Kamal Dahal have so far been silent about the detentions even though former Home Minister Ramesh Lekhak is from the NC.
Oli and Lekhak’s arrests will now be challenged in the courts. But their detention also signals to Nepal’s political old guard that the tables have turned: legacy leaders cannot be complacent and assume they will disappear from national consciousness for past deeds without being held accountable for what happened during their watch.
The RSP government under Prime Minister Balendra Shah seems determined not to let bygones be bygones. But while that is all and well, it remains to be see whether the party can deliver on the need of the electorate for tangible governance reform.
The danger is that the new rulers may be defined by the same tactics of political revenge as its predecessors in the name of meting out justice.

New Nepal government signals action

Nepal got a radically new and young government this week, and among the many choices it has to make will be to decide on embracing bleeding edge technology like cryptocurrency and the blockchain. All crypto activities are currently banned by Nepal Rastra Bank (NRB), and violations can be punished by confiscation of bought goods, fines of three times more, and prison time.&nbsp; “This ban comes from ignorance, not strategy,” says blockchain expert Bijay Bogati, Head of Engineering at Mandarix IT services. “Nobody at the policy-making level in Nepal really understands the technology.” Bogati is also building the Himalayan Art Council’s art certification blockchain, which tracks and archives the transaction history of traditional Paubha paintings as non-fungible assets, ensuring the original artists are credited and paid if the artwork changes hands. &nbsp; This group of technology, often called Web3, is not a fringe movement anymore. Some governments recognise that digital assets have to be integrated into their economies, although there are also those who say it is a corrupt bubble.&nbsp; Donald Trump announced a strategic bitcoin reserve for the US government a year ago. El Salvador has adopted bitcoin as legal tender, and even has ATMs for conversion. France recognises it.&nbsp; Bhutan uses its surplus hydroelectricity to mine bitcoin at its Gedu data center and has used earnings to invest in its Gelephu Mindfulness City project, boost civilservant salaries, and curb the brain drain.&nbsp; In this month’s GenZ-inspired election, Nepal’s voters replaced the older generation of leaders with mostly millennials who are more fluent with new technologies.&nbsp; The tech sector has grown with the country exporting nearly $1 billion worth of software products last year. This is seen by some as the perfect timing to harness the technology in the national interest.&nbsp; NEPAL’S BAN Central banks and financial regulators are averse to switching to technology, and NRB fears crypto transactions could foster money laundering, terrorism financing, capital flight and tax evasion.&nbsp; Critics say this is hypocritical, like a pot calling the kettle black, because it ignores the fact that Nepal’s centralised financial regulator has itself not been able to control rampant corruption, money laundering and tax malpractice. The NRB justifies its ban by saying that people were getting scammed or were at risk of losing money when influenced to bet on digital assets. Others reject this reasoning, saying it dictates how people spend their money.&nbsp; A real concern for Nepal in recognising crypto would be in maintaining ties with bodies like the International Monetary Fund (IMF) and other international creditors, just as the backlash some countries have faced.&nbsp; In Nepal, it is the cybercrime department of the Central Investigation Bureau that invigilates, and it has made a handful of arrests since 2017.&nbsp; But ambiguous laws and a lack of knowhow about the technology means enforcement has not been easy. Says Bogati: “Crypto persists in Nepal. The ban just pushes activity underground.”&nbsp; BHUTAN’S PLAN Bhutan started mining Bitcoin in 2019, when the price for one BTC was $5,000 -- it is now over $70,000. The logic was simple: the country had excess hydroelectricity which was used to power supercomputers to mine bitcoin.&nbsp; The energy was renewable and fit in with Bhutan’s sustainability commitments. The country’s cold climate meant less heat was required to cool the machines.&nbsp; It was state-owned entities doing the mining. Crypto was not something the average Bhutani used every day, and the country has accumulated over 13,000 BTC valued at up to $1.4 billion — 40% of its GDP. It has sold some BTC and used it to raise civil servant salaries and try to reverse youth outmigration.&nbsp; Nepal also has surplus clean energy, especially in the monsoon, and also has natural cooling in the mountains. It also needs money. Every terawatt-hour (TWh) of electricity is worth roughly $84.8 million in gross mining revenue at current bitcoin prices. Nepal’s current surplus of about 3TWh would translate into $254 million a year. Selling the same amount of electricity to India earns Nepal only $56 million a year. In the near term Nepal’s surplus hydropower is expected to reach 14TWh, generating about $1.2 billion a year — almost 3% of its GDP.&nbsp; Currently, Nepal does not have surplus power in winter, the hardware costs to set up the mining operation would be huge, and the value of bitcoin is volatile.&nbsp; Bhutan also made over 100 cryptocurrencies usable for tourists for flights, hotels, and restaurants. After adopting bitcoin as legal tender, tourism to El Salvador surged 22%. Nepal is already a major tourism destination, and adding crypto infrastructure would attract global high-income remote workers who deal in crypto.&nbsp; Experts say there is always the risk of putting all the eggs in the bitcoin basket. It is a speculative asset, and could crash, governments may suddenly outlaw it citing its heavy energy use. Breakthroughs in quantum computing might break its cryptographic basis.&nbsp; But in the 15 plus years it has been active, bitcoin has survived crashes and regulatory and technological attacks.&nbsp; Perhaps as important as the money is the message that Nepal would send out about being open to innovation and investment, providing its engineers jobs within Nepal, and signaling its tech ambitions. For a country so dependent on remittance, using crypto would also save about 4% on transaction fees, as is happening in the Philippines now. The estimated 5 million Nepalis overseas send home $11 billion a year, although the unofficial amount is said to be much higher.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026032803030_ff2106a8941d17e05d4defef183e05a226f03fe67b4b51507d134ad42971534a.jpg" data-media-id="editor_0" data-image-id="2026032803030_ff2106a8941d17e05d4defef183e05a226f03fe67b4b51507d134ad42971534a" data-rendition-name="original" width="1777" height="1000" loading="lazy" alt="Web3 Nepal"> <figcaption>Photo: YALE UNIVERSITY</figcaption> </figure>  All this could be points to ponder for the youth-led RSP when it forms a government this week. It is especially relevant in addressing the party’s main mandate of reducing graft, and could be sold to international creditors like the World Bank and the IMF as a good investment when most capital expenditure projects in Nepal face delays and quality issues because of corruption. One way would be to create a blockchain system for government projects. Funds would be withheld until work is completed, reducing cheating and delays.&nbsp; Any Nepali could poke around to see which firm is granted which project at what cost, and how much progress has been made would improve government efficiency and help reduce fraud. “Lots of Nepalis are actively in Web3/Blockchain development despite the ban. The talent exists,” says Bijay Bogati. “But developers are scared. People with real skills do not want to take the risk.”&nbsp; Raunak Raj Rauniyar leads Superteam Nepal, a global talent network of creators and developers in Web3. He organises regular hackathons and bounty hunts where the best projects can win cash prizes.&nbsp; In a recent college tour across Nepal, it introduced and connected communities to blockchain developers.&nbsp; “We found that there is talent across Nepal. In fact participants outside the Valley were much more engaged and hungrier than those in it, perhaps because they have fewer tech events overall,” says Rauniyar.&nbsp; “More women are involved, the ratio is about 70-30, up from perhaps 90-10 a few years ago.” The Janamat app built on the blockchain is a recent Superteam product that lets any Nepali with a citizenship to anonymously share opinions and vote. This could let the government quickly understand public sentiment of Nepalis home or abroad instantly and on a wide range of topics.&nbsp; During the 5 March election, a Janamat poll for Jhapa-5 showed that 87% thought Balendra Shah would win, which accurately predicted the actual result. Users on the app are now discussing and voting on who should be in the RSP Cabinet (see page 1).&nbsp; WHAT NEXT Nepal continues to be wary and circumspect of these emerging technologies, responding with outright bans that it can hardly even enforce, and maintain an illusion of control.&nbsp; The alternative would be to identify talent which exists, and adopt these technologies, regulate it effectively and reap the benefit. It could make it easier for people to spend and invest their money in Nepal, create jobs, and even slow the brain drain.&nbsp; The timing seems to be just right, as a new forward-looking government of technocrats assumes control. Nepal is set to have a 35-year-old prime minister, and a supermajority government that will hopefully be stable for the next five years. &nbsp;

Time for Nepal to enter Web3

As a direct fallout of the Israel-American war on Iran, Nepal on Monday nearly doubled the price of aviation fuel in a move that is going to impact during the spring peak tourism season. The steep price hike of jet fuel appears to have been made to cushion the impact on the general public. The price of petrol, diesel and cooking gas were also hiked for the third time in a month on Thursday.&nbsp; Aviation turbine fuel (ATF) will now cost $2,237/ton up from $1,207. The cost of ATF in Kathmandu was <a href="https://nepalitimes.com/news/sky-high-fuel-price-hits-nepal-s-tourism-airlines" target="_blank">already one of the highest among Asian airports</a>, and this price hike will affect mostly long-haul flights to Istanbul, Seoul and Narita for airlines that need to refuel in Kathmandu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404030416_6c5731484b4224dd6cbf4c4217036570ed769b3a98ccb9b0dd3250021091e3ac.png" data-media-id="editor_1" data-image-id="20260404030416_6c5731484b4224dd6cbf4c4217036570ed769b3a98ccb9b0dd3250021091e3ac" data-rendition-name="original" width="1784" height="1294" loading="lazy" alt="Nepal aviation fuel price goes up"> </figure>  Domestic airlines, which paid Rs127 per litre, will now have to pay Rs251 for their turboprop planes. “We have no recourse but to pass this on to passengers as a fuel surcharge,” said one executive of a domestic airline in Nepal. As it is, Nepal Oil Corporation levied a hefty tax on petrol and ATF in order to subsidise diesel and cooking gas. Many analysts were expecting a fuel price hike, but the near-doubling of the price of ATF means the new Nepal government is trying to protect ordinary citizens from raising the price of diesel and LPG even more than it has so far. Aviation fuel in Nepal is trucked in on tankers from Indian refineries and its price is highest in Kathmandu, and less in Bhairawa and Pokhara — transportation costs being higher depending on distance. But even in Bhairawa, ATF prices have doubled for the only international airline that serves it, Thai AirAsia.&nbsp; Most airlines flying Kathmandu from nearer airports in India, the Gulf and Southeast Asia will be less impacted because they can fly in on full tanks and need minimum refuelling in Kathmandu. But carriers like <a href="https://nepalitimes.com/banner/high-cost-lays-aviation-low-in-nepal" target="_blank">Turkish Airlines</a>, Cathay Pacific, Korean Air, &nbsp;and Nepal Airlines which fly wide body aircraft on long-distance routes will be hit hardest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026040305040_a40db74375ebe0c28e7c35477bc262df9ae392a84e7bfa4033996181d69e0209.jpg" data-media-id="editor_3" data-image-id="2026040305040_a40db74375ebe0c28e7c35477bc262df9ae392a84e7bfa4033996181d69e0209" data-rendition-name="original" width="1032" height="689" loading="lazy" alt="sky high prices"> </figure>  However, ATF costs have also been raised in regional airports like Hong Kong, India and Singapore. Aviation fuel at New Delhi airport has risen to $1,698/ton. Korean Air is adopting emergency measures to reduce expenses to make up for rising fuel costs. South Korea gets nearly all its fuel from the Gulf, and the blocking of the Strait of Hormuz has been especially damaging for the country. Fuel makes up more than a third of the operating cost of airlines, and even a small increase in ATF prices can make a big difference. Crude oil prices have increased 50% since the West Asia war began on 28 February, and global ATF prices have doubled.&nbsp; Airlines in Asia, including Nepal, face a double shock. The first is the higher fuel cost, and the second is that fewer people are travelling. Nepal’s tourism arrivals fell in March compared to February. India has added up to 20% fuel surcharge on domestic flights, and has reduced flights by 12%. Chinese airlines have also been affected, with China Eastern preparing for a significant impact of the Gulf war. It has added fuel surcharges to new tickets, as have Cathay Pacific, Thai International and Air Asia. Vietnam has drastically cut the number of domestic flights, and the Philippines will ration ATF. Australia imports 90% of its ATF mainly from China which has stopped export to ensure domestic supply to its own airlines. Carriers like Qantas have curtailed flights, changing aircraft type on long-haul routes, and a fuel surcharge of up to 20% have been added to tickets. Most Asian airlines are adding fuel charges only to new tickets, and the increase will not affect the price of pre-sold tickets issued for April and May.

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Time for Nepal to enter Web3

Fuel price shock hits Nepal aviation