With the ongoing war, innocent <a href="https://www.bbc.com/news/newsbeat-44124396">death and destruction in Palestine by Israel</a>, the recognition of the state of Palestine stands out as the most complicated issue in the history of state recognition.&nbsp; Both Israel and Palestine have their own history and geography as well as their supporters and opponents. Israel's war in the region is escalating, as the air strikes on Lebanon on Sunday shows.&nbsp; It should be acknowledged that Israel and Palestine have equal rights to statehood, to exist, to defend, and to live in peace. Israel and Nepal both applied for <a href="https://thediplomat.com/2020/12/5-facts-about-nepals-un-membership/">membership of the UN at the General Assembly</a> in 1949. Israel’s application was proceeded by the Assembly and approved by the Security Council in the same year.&nbsp; Nepal’s membership was blocked until 1955 at the Security Council because of a Soviet veto. In 1960 Nepal was the first South Asian country to recognise Israel by a unilateral government decision and established diplomatic relations. Nepal supported Palestine statehood both at the Non-Aligned forum in the 1980s and the UN General Assembly in recent times. Nepal should now make a formal and unilateral declaration in support of full recognition of the State of Palestine.&nbsp; Read also: <a href="https://nepalitimes.com/opinion/the-world-s-moral-failure-in-gaza">The world’s moral failure in Gaza</a>, Graça Machel This should be a declaration similar to what Nepal government issued vis-a-vis Israel decades ago, and a new declaration is especially warranted because of the misuse of the veto power by the United States, blocking Palestine’s full membership of the UN. Nepal may emphatically remind itself of being similarly blocked from becoming a UN member for five years because of the Soviet veto. The Palestine question has become a ‘politics of international law’ within and outside the UN. In May 2024, <a href="https://www.bbc.com/news/world-middle-east-68983650">the General Assembly referred a proposal to the Security Council</a>, calling for the admission of Palestine as a full member of the UN. The United States used its veto against it. After the US veto Norway, Ireland, Spain and several European countries declared Palestine statehood unilaterally.&nbsp; Informed debate on Palestinian statehood is a rare subject in the Nepali media. Hamas terror on 7 October, 2023 in Israel in which <a href="https://nepalitimes.com/news/nepalis-confirmed-killed-in-hamas-attack">10 Nepali students were killed</a> and one Nepali citizen is still being hostage, was rightly condemned by the Nepal government and media.&nbsp; Read also: <a href="https://nepalitimes.com/news/hamas-releases-thais-but-where-is-bipin">Hamas releases Thais, but where is Bipin?</a>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240827110848_99ae0b3f0825f77dbc91027d5084b46e6b44318a11067dfbc967824925ed5656.jpg" data-media-id="editor_6" data-image-id="20240827110848_99ae0b3f0825f77dbc91027d5084b46e6b44318a11067dfbc967824925ed5656" data-rendition-name="original" width="2400" height="1667" loading="lazy" alt="Damage after an Israeli airstrike on Gaza City on October 2023 NT 2"> <figcaption>The damage following an Israeli airstrike on the El-Remal area in Gaza City on October 9 2023. Photo: NAAMAN OMAR/ WIKIMEDIA</figcaption> </figure>  Anyone who believes in international rule of law must condemn acts of terrorism whether it is by state or non-state actors. But the Nepal government and media seem to be silent on condemning acts of genocide in Gaza. This is despite the<a href="https://www.atlanticcouncil.org/blogs/new-atlanticist/experts-react/experts-react-what-the-international-court-of-justice-said-and-didnt-say-in-the-genocide-case-against-israel/"> International Court of Justice acknowledging ‘plausible genocide’</a> by Israel that is not a proportinate response to terrorism.&nbsp; The Nepal government should declare Palestine statehood in the same manner as Prime Minister BP Koirala's government recognised Israel in 1960 -- a bold, unilateral and formal recognition – even though Nepal voted in favour of Palestine in resolutions at the UN General Assembly and Non-Aligned countries' conferences. Of 193 UN member states, 146 have voted for and 94 countries have established formal diplomatic relations with Palestine, yet it is still being <a href="https://press.un.org/en/2024/sc15670.doc.htm">blocked from full UN membership</a>. The state practice of recognition follows political realities and the process varies from case to case. In the case of Palestine, especially in opposition to the United States veto, Nepal should make an official endorsement with other countries like Norway and Spain to strengthen the de jure status of Palestine. &nbsp; Nepal’s expressed solidarity with Palestine is noteworthy, but voting in UN resolutions is not enough for de jure recognition of Palestine since the Security Council approval is lacking. The<a href="https://press.un.org/en/2024/ga12599.doc.htm"> UN General Assembly only gave de facto recognition of Palestine</a>, which helped to upgrade its non-state observer status to a UN member. However, it is still awaiting recognition of de jure sovereignty as well as full membership of the UN. Read also:<a href="https://nepalitimes.com/opinion/protests-of-despair"> Protests of despair</a>, Slavoj Žižek Right or wrong, the Security Council has ultimate authority to declare so-called ‘hard law’. Under the UN hierarchy of its five permanent members (US, UK, France, Russia and China) have the authority to block any substantive decision. UN records shows that the United States has used its veto 42 times in favour of Israel. All attempts to recognise Palestine’s de jure sovereignty have been blocked by the United States. Contrary to the Security Council, the General Assembly is the global legitimate forum. The Assembly resolutions, however, are only recommendatory, lacking binding force. The weakness of the Assembly resolutions, lamentably, is that they usually form so-called ‘soft law’, but which can still be seen as binding law. The Security Council and supporters of ‘hard law’ do not perceive Assembly resolutions as binding law. Israel is defying not only the International Court of Justice’s rulings but also the orders of Security Council. As a response to a recent request by the General Assembly, the <a href="https://www.icj-cij.org/node/204176">International Court of Justice on July 19 gave an advisory opinion</a> in which it declared that Israel’s occupation of Palestinian territories since 1967 was unlawful. Israel and the United States did not recognise the Court's opinion on this issue.&nbsp; Palestine has some weaknesses to fulfill statehood, which is also the case of Israel. For example, Palestine does not have full control over its territory since it is under occupation. When it comes to Israel, there is a problem with its democracy, democracy being known as a modern criterion of statehood in addition to territory, control over territory, population and government. In this context, Israeli democracy is not free of criticism, with some even calling it an <a href="https://www.vox.com/23924319/israel-palestine-apartheid-meaning-history-debate">‘apartheid state’</a>.&nbsp; Read also: <a href="https://nepalitimes.com/opinion/guest-editorial/the-international-order-is-dying-in-gaza">The International Order Is Dying in Gaza</a>, Mohamed ElBaradei For Palestine to be regarded as a fully sovereign State under international law, it must obtain de jure recognition -- this means legal acknowledgement by the international community. Some are calling for an Israel-Palestine ‘bi-national state’, a homeland for both Jews and Palestinians, but only de jure sovereign Palestine may be helpful for future peace in West Asia.&nbsp; Nepal’s new unilateral declaration will not by itself be enough to make Palestine a sovereign state. It will, nonetheless, make history. Or at least Nepal will be standing courageously on the right side of the history. &nbsp;&nbsp; Katak Malla is a Senior Fellow at the Stockholm Centre for International Law and Justice in Stockholm University.

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Nepal should recognise Palestinian sovereignty

The relentless <a href="https://nepalitimes.com/business/solidarity-with-gaza" target="_blank">siege on Gaza</a> is a dark reflection on humanity. Well over <a href="https://reliefweb.int/report/occupied-palestinian-territory/100th-day-gaza-genocide-100000-palestinians-killed-missing-or-wounded-enar" target="_blank">100,000</a> Palestinians have been declared killed, injured, or missing over the past six months, and the overwhelming majority are innocent civilians who bear no responsibility for Hamas’ <a href="https://nepalitimes.com/news/nepalis-confirmed-killed-in-hamas-attack" target="_blank">7 October attack.</a>&nbsp;
The United Nations Security Council has finally <a href="https://press.un.org/en/2024/sc15641.doc.htm" target="_blank">passed</a> a resolution calling for an immediate ceasefire and the immediate release of hostages held by Hamas. Now, all UN member states, particularly Israel’s political and military allies, must do everything in their power to ensure that the resolution is implemented in full as soon as possible.
For Gazans who survive Israel’s military assaults, a lethal combination of displacement, hunger, and disease awaits. Israel’s blockade of humanitarian supplies, food, and clean water has made life in the enclave a nightmare.&nbsp;
Aid agencies <a href="https://www.cbc.ca/news/world/women-gaza-birth-pregnancies-1.7143489#:~:text=Aid%20agencies%20and%20doctors%20say,and%20food%20for%20the%20infants." target="_blank">report</a> mothers giving birth without anaesthetics, babies dying from dehydration and malnutrition, and sickness ravaging entire communities. With no one in Gaza safe from massacre, we have reached the threshold of <a href="https://www.theguardian.com/world/2024/mar/22/unicef-official-utter-annihilation-gaza" target="_blank">population-scale annihilation</a>.
The trauma is now reverberating across the whole region. Gazans are haunted by post-traumatic stress disorder and grief, and more than one million children are in dire need of <a href="https://www.ohchr.org/en/statements/2024/02/child-rights-committee-statement-children-gaza" target="_blank">psycho-social support</a>. The latest devastation adds to the suffering inflicted by Israel’s 18-year-old <a href="https://www.hrw.org/news/2023/10/18/israel-unlawful-gaza-blockade-deadly-children" target="_blank">blockade of Gaza</a>.&nbsp;
And in the West Bank, Palestinians face multiple threats, from unconstrained settler violence and forced displacement to the constant threat of arbitrary detention.&nbsp;
At the same time, more than 100 Israelis and <a href="https://nepalitimes.com/here-now/a-nepali-s-lucky-escape-from-hamas" target="_blank">many foreigners</a> are still held <a href="https://www.wsj.com/world/middle-east/hamas-hostages-israel-gaza-41432124" target="_blank">hostage</a> by Hamas, in contravention of international humanitarian law, prolonging the pain felt by their families and those of the civilians killed on 7 October.
Worse may come if Israel <a href="https://nepalitimes.com/opinion/guest-editorial/the-international-order-is-dying-in-gaza" target="_blank">defies warnings</a> from its closest allies and moves ahead with its plans for an <a href="https://www.bbc.com/news/world-middle-east-68591487" target="_blank">assault on Rafah</a>, which is currently host to <a href="https://apnews.com/article/gaza-rafah-israel-hamas-war-photo-gallery-2a93ded7d44b9720d941f7e53c5bf45e" target="_blank">1.5 million people</a>, including over 600,000 children.&nbsp;
Many of those seeking refuge in this border city have already endured the trauma of multiple displacements over the past half-year. A full-scale Israeli military incursion must not be allowed to happen.
I write these words as someone who looked into the eyes of young Palestinians while preparing the 1996 UN report <a href="https://childrenandarmedconflict.un.org/about/the-mandate/mandate/the-machel-reports/" target="_blank">The Impact of Armed Conflict on Children</a>. Speaking to children in refugee camps, we promised that their suffering would end.&nbsp;
Not only have we failed to make good on that promise, we have left an even more hostile world for children who happen to be born Palestinian. I carry this haunting failure with me.
I also write these words as a member of The Elders, the group of independent global leaders that I co-founded with my late husband, Nelson Mandela, and which was chaired in its early years by Archbishop <a href="https://www.project-syndicate.org/columnist/desmond-tutu" target="_blank">Desmond Tutu</a> and former UN Secretary-General <a href="https://www.project-syndicate.org/columnist/kofi-a-annan" target="_blank">Kofi Annan</a>.&nbsp;
Madiba (Mandela) gave us a mandate to work for peace, justice, and human rights worldwide, and he always considered <a href="https://www.aljazeera.com/features/2023/12/5/unpack-the-past-mandela-the-keffiyeh-and-south-africas-palestine-embrace" target="_blank">Palestinian liberation</a> to be key to achieving a just and free world for all.&nbsp;
How can any of us speak credibly of universal human rights and the international rule of law when we permit brutality and occupation to continue for decades?
Amid such despair and lack of moral courage by those with the power to stop the current carnage in Gaza, I am proud of the exceptional leadership that South Africa has shown in bringing a <a href="https://www.icj-cij.org/node/203454" target="_blank">complaint against Israel</a> for violating the Genocide Convention at the International Court of Justice.&nbsp;
The ICJ’s preliminary ruling, on January 26, and the <a href="https://www.forbes.com/sites/jillgoldenziel/2024/04/01/why-the-international-court-of-justice-gave-israel-a-new-order/#:~:text=On%20March%2028%2C%20the%20International,what%20South%20Africa%20had%20requested." target="_blank">additional measures</a> ordered on March 28, explicitly condemn the atrocities taking place in Gaza and are unambiguous about the steps Israel must take to protect innocent Palestinians, including unhindered provision of humanitarian assistance at scale.
Israel and the countries providing it with military and financial assistance must heed the court’s findings and adhere to their obligations under international law. But we are not helpless in the face of this monumental suffering.&nbsp;
As members of one human family, we have an ethical duty to speak out against these injustices in our own circles of influence. We can wield power through our own individual and community activism. With our votes and protests, we can – and must – demand accountability from our political leaders.
Here is what we must demand. First, additional humanitarian land routes urgently need to be opened to meet the overwhelming need for life-saving aid. The safety of aid deliveries must be guaranteed at all times.&nbsp;
Air drops and the recently proposed <a href="https://www.middleeastmonitor.com/20240327-the-new-maritime-aid-corridor-poses-a-major-threat-to-gaza-and-egypt/" target="_blank">maritime corridor</a> are insufficient, and must not be allowed to absolve Israel of its own responsibility to civilians in Gaza.
Second, world leaders must use military and financial leverage to compel Israel to cease its violations of international law and comply with the ICJ’s orders. All countries providing military assistance to Israel should immediately put these shipments under review and set new conditions for future provision. Those that continue supplying arms are enabling the carnage and may be complicit in war crimes.
Third, decision-makers must provide full financial and political support to the UN Relief and Works Agency for Palestine Refugees. Many donors have rushed to <a href="https://www.france24.com/en/middle-east/20240205-as-donors-suspend-critical-funding-to-unrwa-allegations-against-staff-remain-murky" target="_blank">suspend funding</a> for the organization, pending the outcome of investigations into Israel’s allegations that some UNRWA staff participated in the October 7 attack.&nbsp;
This premature, disproportionate response is now irresponsibly endangering the rights and well-being of millions of Palestinian refugees. The Israeli government has made no secret of its desire to dismantle UNRWA once and for all. Will we allow it to become yet another casualty of the war?
The situation cries out for concerted action by a broad coalition of countries committed to a just and permanent peace that enables Israelis and Palestinians to co-exist under conditions of mutual respect, self-determination, dignity, and security. Palestinian and Israeli lives and security are of equal worth. If this fundamental truth does not prevail on political leaders and ordinary citizens, we will continue to forsake generations of innocent children.
Graça Machel is a Mozambican politician, Deputy Chair of The Elders and founder of the <a href="http://gracamacheltrust.org/new/" target="_blank">Graça Machel Trust</a>. She is the widow of former President of Mozambique Samora Machel and former President of South Africa Nelson Mandela. &nbsp;

The world’s moral failure in Gaza

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

Visit Nepal in the monsoon

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

Nepal’s bubble economy

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

Flouting rules caused Saurya tragedy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

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