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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Creating a firm future for Nepal

From high school, Nepali students memorise that Nepal is an ‘agricultural country’, and that 80% of the population is engaged in farming.
While it is true that most Nepalis are still dependent on agriculture, the country’s economy is shifting to services. Seven in every ten families also depend on remittances for household income.&nbsp;
Agriculture now contributes less than 25% to Nepal’s economy, and this is down from 81% three decades ago. The number of Nepalis engaged in the service sector used to be only 16% at that time, and today it has gone up to 29%.&nbsp;
Nepal’s economy has been transformed in recent decades during which new professions, businesses and enterprises have flourished. The finance, information technology (IT), hospitality, trade and other sectors have expanded.&nbsp;
Meanwhile, the role of agriculture in Nepal’s economy has diminished.&nbsp;
The strength of a country's economy is measured by the total value of goods and services produced annually, its GDP. Economies are divided into three sectors of activity: agriculture and forestry, manufacturing and construction and the service sector, which includes IT, finance, insurance, real estate and tourism.
Economies move through a cycle of expansion from the primary to the secondary to the tertiary sectors. Many developed countries are considered to have advanced because of the industrial sector.&nbsp;
However, Nepal’s industrial sector has not grown in comparison to other nations. Indeed, while the industrial sector contributed 8% to the economy 50 years ago, it reached a peak of 21% some decades later, but at present has declined to 12.5%.
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Industry is supposed to enhance production and in the process create jobs. But Nepal’s weak industrial development is one of the factors that drove 690,000 Nepalis to go abroad last year.&nbsp;
The lack of industrial growth has meant that Nepal depends largely on the third service sector stage, which makes up almost two-thirds of the nation’s economy.
Nepal’s economic change has been brought about by a lack of meaningful growth in the agricultural and industrial sectors, as well as improvements in Nepal’s service sector.
“But this is only structural change, not a structural transformation needed for radical improvements to the economy,” says economist Dilli Raj Khanal. “For there to be such a transformation, we need to up our productivity in all sectors: agriculture, industry or service.”
The service sector also has inherent risks. While a small number of people involved in the service sector can increase production and add value to the economy, it may not create many jobs.
Moreover, because the service sector mostly involves educated, tech-savvy and business-minded people, its benefits are mostly limited to their circles, increasing socio-economic inequality.&nbsp;
“The service sector yields more products despite fewer people being engaged in it, meanwhile agricultural production is declining &nbsp;despite the involvement of a significant section of the population,” says Khanal. “We must thus find ways to increase both production and income in the agricultural sector.”
In the last three decades, the agricultural sector in Nepal has only grown at the rate of 2.9% annually, while the growth rate of the service sector during the same period has been 6.3%. So while the service sector is expanding, there has been no comparative increase in agricultural production, which in turn means that the income of Nepali farmers has not increased either. That further widens the gap between rich and poor.
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A 1% growth in the agricultural sector plays an equal role in reducing poverty as a 6% growth in the service sector. Says economist Biswo Poudel, professor at Kathmandu University: &nbsp;“Farmers directly benefit from agricultural reform, but an economy boosted by the service sector does not reach those communities.”
The average annual per capita income of Nepalis is $1,434 compared to $824 ten years ago. Despite this, the benefits have not been equally spread across communities. Those involved in the service industry, which has contributed to economic growth, have reaped the rewards. Farmers have just not enjoyed similar profits.&nbsp;
“As it is, there is little possibility for expansion in the agricultural sector because we can neither increase the arable land nor productivity,” notes Hem Raj Regmi at the National Statistics Office.
It is not that newer ventures have not been launched in the last decade. For instance, while the banking and insurance sector contributed less than 3% to Nepal’s economy 20 years ago, it now makes up 7% of the economy.
Similarly, the share of the administrative sector has gone from 2% to 10% in the last 2 decades. But the share of the manufacturing and industry in the economy has fallen below 5% as compared to 9% two decades ago.&nbsp;
Economist Poudel argues that increased agricultural production can lead to further economic growth in Nepal, provided there is an expansion of irrigation and transfer of agricultural technology.
There are almost 2.27 million hectares of irrigable land in Nepal, out of which 800,000 hectares do not have irrigation. Moreover, only one-third of the over 1.4 million hectares of land that have such facilities remain irrigated year-round. The rest are rain-fed fields.
“The greatest challenge Nepal faces is to create jobs in the agriculture sector as well as ensure a decent income,” says Regmi of the National Statistics Office.

Nepal economy shifts away from farming

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101148/636a26bf9c7e80680e043a31jpeg.jpg" alt="" width="800" height="1024"/>Prime Minister Oli said last week that his government laid the foundation for prosperity in Nepal during its <a href="https://www.nepalitimes.com/banner/olis-1st-year/">first year in power</a>. This claim has very little foundation. The economy has not performed well in the last year, and even he is said to be frustrated by the lack of progress.There has been limited movement in hydropower, transmission lines, roads, irrigation. The trade deficit has grown alarmingly as imports soar while exports stagnate. The <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/nepal-living-beyond-its-mean/">balance of payments</a> is covered year after year largely by <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=6454#.XGzzlOQza70">remittances</a> sent back from abroad by Nepali men and women who should be contributing to investment, entrepreneurial activity, income generation and production back home.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/mind-the-gap-2/" target="_blank" rel="noopener">Mind the Gap</a>, Editorial<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/?p=21837&amp;preview=true" target="_blank" rel="noopener">Nepal’s great income divide</a>, Ramesh Kumar<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank" rel="noopener">Some are more equal than others</a>, Anil Chitrakar<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/banner/its-a-rich-mans-world/" target="_blank" rel="noopener">It’s a rich man’s world</a>, Ramesh KumarEvery year, more than 300,000 young Nepalis enter the labour market, but the supply of jobs is much smaller than the demand, so many seek opportunities abroad. Others are forced to take low paid jobs with limited security, and nearly a third of the work-age population remains unemployed or underemployed.Banks are reluctant to lend, even to established enterprises and much less so to entrepreneurs hoping to invest in start-ups. Those with substantial resources of their own prefer to invest in sectors providing more reliable returns, such as real estate, hotels and restaurants in urban areas, commerce and trade.Where larger investments are made for the longer-term, for example in infrastructure or aviation, it is usually only when lucrative government contracts are involved, providing direct or indirect benefits of various kinds (including <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/from-the-nepali-press/melamchi-delayed-by-government-extortion/">illegitimate arrangements</a>).Nepal remains a largely rentier capitalist economy, rather than one in which capital investment in production generates real and sustainable growth, promoting and encouraging enterprise and creating jobs.The government and the state could assist by better regulation and also by cutting red tape, effective control of rampant corruption (even inside an anti-corruption watchdog like the <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/blogs/thebrief/2016/10/16/who-is-afraid-of-the-ciaa/">CIAA</a>) and by the promotion of investment in medium and long-term productive activity.One way this can be done is through effective public works programs. These have been successful in many countries and have also proved their worth in Nepal. They could be adopted on a much larger scale by both federal and provincial governments seeking rapid development and job creation.The construction of ‘green roads’ using labour rather than capital-intensive machinery by the Rural Access Programme (RAP) among others, has shown to effectively contribute to infrastructure development while creating employment.Recently, Prime Minister Oli launched a new <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/social-insecurity/">Employment Program</a> ensuring a minimum of 100 days of wage-employment a year to those registered in the scheme. Registered persons will be entitled to 100 days in paid employment, and if this cannot be delivered they can get a subsistence allowance worth half of the amount to be paid to those employed under the scheme.An Employment Service Centre (ESC) will be established in each of the 753 local authorities and employment coordinators will be deployed at all centres, to record, through an Employment Management Information System, all those who are unemployed and seeking a job. These will act as ‘job centres’ at the level of the urban or rural municipality and will indicate employment opportunities within the locality as well as providing 100 days employment or subsistence.The Ministry of Labour and Social Security has identified 13 categories, but there is no reason why the jobs available should be limited to those areas. The proposed scheme appears to be confined to ‘government projects’, but the ESC should be able to gather information on all employment opportunities in the private and public sectors and provide this information in real time to job-seekers and prospective employees.In this way it could contribute not only to employment but also to social security for the unemployed and their families, and to local development. It is a scheme to be welcomed as a bold initiative, long overdue.Of course, this remains a scheme in theory, yet to be put into practice. And if it is like so many other paper schemes proposed by successive governments over the years, it will be yet another <a href="https://www.nepalitimes.com/editorial/communist-capital/">deception</a> perpetrated on the Nepali people.One problem is deploying and supporting the human and technical resources required for the scheme. Will local authorities be able to fund the ESC and the personnel needed to staff it and operate it effectively? Will the IT required to establish and maintain a data base on both job opportunities and job seekers be made available and will it be properly serviced?Identifying and verifying candidates for the scheme also cannot be another gravy train for local party cadres and their families or for local elites, otherwise it will not help the jobless and the poor. A significant proportion of Nepal’s population remains below the poverty line, and they should benefit from this scheme.We should welcome this proposal for a pioneering scheme, which has the potential to benefit not only the unemployed, but also the wider local population, and if it takes off, the economy of Nepal at local, provincial and national levels.David Seddon is Director of Critical Faculty, author and co-author of many publications on Nepal, and currently writing a three-part book on ‘Nepal and the Great War’.

Removing poverty with jobs

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161120/636922599c7e80680e03a123jpeg.jpg" alt="" width="1560" height="1170"/>How does <a href="https://archive.nepalitimes.com/regular-columns/half-full/re-imagining-tourism-in%20nepal,1103" target="_blank" rel="noopener">tourism industry</a> intersect with local governments in a federal state? <a href="https://archive.nepalitimes.com/page/Patan-town-as-a-museum-piece" target="_blank" rel="noopener">Patan</a> and <a href="https://www.nepalitimes.com/banner/clash-of-cultures-in-bhaktapur/" target="_blank" rel="noopener">Bhaktapur</a> have shown the way by their municipalities working with <a href="http://www.nathm.edu.np/" target="_blank" rel="noopener">Nepal Academy of Tourism and Hotel Management</a> (NATHM) to meet the demand for tour groups in various languages.There is an increasing demand for guides who can help visitors understand the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saving-the-intangible,3303" target="_blank" rel="noopener">history and culture</a> of the places they visit in Kathmandu Valley. Increasingly because of the changing nature of the source countries, guides are needed who are fluent in Mandarin, Korean, Japanese, Spanish, Italian, or Russian.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161120/6369225c9c7e80680e03a124jpeg.jpg" alt="" width="640" height="853">Nepal wants to attract <a href="http://archive.nepalitimes.com/article/nation/bringing-in-two-miilion-tourists,3551" target="_blank" rel="noopener">2 million tourists in the next two years</a>, and all the emphasis has been on the hardware: <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/" target="_blank" rel="noopener">airports</a>, <a href="https://www.nepalitimes.com/here-now/boom-time-in-central-terai/" target="_blank" rel="noopener">hotels</a> and highways. How about software like training for the hospitality industry?Guide training will not just meet demands from visitors, but will also <a href="https://www.nepalitimes.com/here-now/nepal-moves-from-aid-to-enterprise/" target="_blank" rel="noopener">create jobs closer to home for young Nepalis</a> who may otherwise be tempted to <a href="https://archive.nepalitimes.com/article/editorial/nepals-number-one-export-nepali-people,4103" target="_blank" rel="noopener">migrate</a>. But, as good as the intentions behind this initiative may be, it will take some time to build trust and a system where the local tour guides and the tourists will benefit from each other.Local tourism committees and the municipalities in <a href="https://www.nepalitimes.com/here-now/bhaktapur-shows-the-way-by-rebuilding-itself/" target="_blank" rel="noopener">Bhaktapur</a> and <a href="https://www.nepalitimes.com/opinion/12-full-opinion/marketing-the-intangible/" target="_blank" rel="noopener">Patan</a> are trying to work out the fee structures, bookings, the ratings, uniforms, visible ID cards. Guides do not just need to be well versed in the history and the culture of Kathmandu Valley towns, they also need to know how to improvise.During a training session last week at Bhaktapur Darbar Square at 8 am, the big bell began to ring. Like any good tourist, the trainees were asked what the ringing signified. The answer was that the bell was ringing for morning prayers at the Taleju Temple. While locals knew the answer, the guides had to be trained to anticipate such questions.Vocabulary can be a limiting factor for tour guides since they are not explaining in their mother tongues. While being trained in the iconography of the Narasimha, all the guides knew the items Vishnu held in his four arms, but translating it all into English or Mandarin can be a real challenge.The trainees have begun to develop their own personalised thesaurus that they will be expanding on over the next few years. This was a also a good time to introduce Malcolm Gladwell’s ‘ten thousand hour rule’ to young Nepalis, who are in a big hurry to succeed. It will take the trainees 10,000 hours of hard work if they are to become the best tour guides in Nepal.Providing context to the visitors was another challenge for the trainees. How much context should be given without overwhelming visitors with information? What was happening in their own country during the heydays of the kingdom of Bhaktapur? Why are the countries from where the tourists come wealthy, while Nepal slipped into poverty and feudalism? What were the key events that changed the history of the world and Nepal in particular? Guides therefore need to have a much broader general knowledge, and not just the specifics of one place.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161120/6369225f9c7e80680e03a125jpeg.jpg" alt="" width="640" height="853">To become a really good tour guide, they also need to know about the present relevance of the monuments, spaces and the <a style="background-color: #ffffff; letter-spacing: 0.15px;" href="https://nepalitimes.atavist.com/cultural-evolution" target="_blank" rel="noopener">cultural events</a>. Why are we able to give continuity to some festivals while others struggled to exist? Why, for example, did we stop maintaining water sources at the Valley rim every 12 years as we used to? Was it because we got piped drinking water, or was there something else?History is generally considered to be a boring list of kings and their reigns. Histroy is no longer a popular subject at university; last year only one student enrolled in history at TU. Therefore, bringing a historical city to life is not as easy as it seems. But it can be done.If we are to truly benefit from sightseeing tourism, we need guides who have that breadth of knowledge to explain our heritage to the world. This means tourists who spend more, who buy souvenirs, eat, and rent bed and breakfast pensiones. They check their bucket list and they will go back and tell others to come. Many will come back if the tour guide can provide the context. This would benefit Nepal’s economy and not just provide income for tour guides and their families. The most difficult thing about culture seems to be able to say: “I do not know, but I will find out.”Anil Chitrakar is President of Siddharthinc.Read also:<a href="http://archive.nepalitimes.com/article/nation/bringing-in-two-miilion-tourists,3551" target="_blank" rel="noopener">2 million by 2020</a>, Shreejana Shrestha<a href="https://archive.nepalitimes.com/regular-columns/half-full/re-imagining-tourism-in%20nepal,1103" target="_blank" rel="noopener">Re-imagining tourism</a>, Anil Chitrakar<a href="https://www.nepalitimes.com/opinion/12-full-opinion/marketing-the-intangible/" target="_blank" rel="noopener">Marketing the intangible</a>, Anil Chitrakar <img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161120/636922629c7e80680e03a126jpeg.jpg" alt="" width="1560" height="1170">

Anil Chitrakar

Guiding Nepal’s tourism industry

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/20260404130420_4ae075d1e871fc5608cf242d6e309005d30cfdb6e6d0ecfb45ca7388a851c6aa.png" data-media-id="editor_1" data-image-id="20260404130420_4ae075d1e871fc5608cf242d6e309005d30cfdb6e6d0ecfb45ca7388a851c6aa" data-rendition-name="original" width="1784" height="1294" loading="lazy" alt="aviation turbine fuel prices"> </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.

Fuel price shock hits Nepal aviation

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

Along with the Sherpa community, it is perhaps Kathmandu Valley’s Newāh Civilization that has been the most studied by anthropologists, architects, historians and social scientists.&nbsp; Tomes have been written about the built environment of the Valley’s former kingdoms, the influence of Indian culture, and how it in turn inspired the temples, monasteries and monuments in Tibet, through China right up to Korea and Japan. Lately, there has also been an attempt to recognise and preserve not just the brick and mortar landscape of Kathmandu, but also the intangible heritage of the Newāh people. A critical component of the ancient festivals in the streets, alleys and baha of the inner cities are ritual plays and dance. Gérard Toffin is a social anthropologist with the Centre d’Etudes Himalayennes at the Centre National de la Recherche Scientifique (CNRS) in France, and has been researching in the region since the early 1970s, focusing on Newāh society and especially its Jyapu farmers. Lately, his work has focused on indigenous theatrical performances, and how they are evolving with modern influences.&nbsp; RECORDING RITUALS The result of his study is this hefty ethnographic book, Newar Theatrical Performances: Religious, Royal and Comic Aspects, delving into sacred performances. This is the first-ever detailed documentation of the minutest aspects of traditional plays and holy ceremonies of Kathmandu Valley. This book is not for the package tourist on a quick walkabout of Patan, the details and terminology can be daunting even for natives to navigate. But this is what social science research is supposed to do – take a deep dive into cultures that we take for granted either because we are a part of it, or because we have never bothered to find out its meaning.&nbsp; Dance forms with mythological themes, masked processions, gestures, facial expressions of the performers, have all been passed down from one generation to the next, adhering to age-old codes. The world is moving at an accelerated pace because of TikTok-induced globalised connectivity, but traditional gender or caste dynamics and hierarchies are carried over intact in many of these performances. It is as if traditional theatre itself is a time capsule giving us a peep into the past. Some of the performances and dance are in danger of going extinct as the population ages and the young migrate out. However, there has been a cultural renaissance among the Newāh guthi overseeing these ritual plays, dances, or chariot processions. The next generation of apprentices are being trained. This pride in heritage means that Kathmandu Valley civilization is not as endangered as it may appear.&nbsp; Gérard Toffin’s book is an important ethnographic work that will help preserve the Nepal Valley’s unique blend of urban-rural, cosmopolitan-agricultural, Hindu-Buddhist, indigenous-national. The Tantric choreography of Newāh theatre, just as the kama sutra depictions on erotic temple art, show Indian influence, but Toffin says they have been ‘Newarized’.&nbsp; One example is the sexually-explicit shadow play staged every year since 1690 CE by Jhyalcha Guthi in Patan that exposes the infidelity of King Yog Narendra Malla. Toffin devotes a whole last section of his book to irreverent plays (khyalah) that ridiculed the rich and powerful, the royals and upper castes and their shenanigans.&nbsp; He examines the importance of comic relief at a time when death was ever-present in historic Kathmandu with its frequent epidemics. One cholera outbreak in 1885 is estimated to have killed 10,000 people – a fifth of Kathmandu’s population at the time.&nbsp; The Saparu festival in Kathmandu and Mataya in Patan memorialised through street processions those who had died the previous year – and this was institutionalised into Gai Jatra by King Pratap Malla in the 17th century to console his queen after their second son was killed by an elephant. Families were asked to file past the palace to show the queen that she was not the only one grieving.&nbsp; Pratap Malla also allowed clowns, burlesque plays, and satirists to make the queen laugh. The Rana and Shah regimes which suppressed free speech continued the Gai Jatra tradition to allow citizens to let off steam. Rulers were lampooned, and the performances involved scatological jokes, cross-dressing and lewd acts.&nbsp; Interestingly, the Nepal Bhasa word ‘pyakha’ means both ‘dance’ and ‘theatre’ (today also ‘cinema’, as Toffin notes) and so the performances were also a combination of ritual dance, traditional music and a stage play. Stories involve gods, goddesses and mythological characters, and are passed down through generations of performers. (See adjoining article on Pāhāñ Charey.) Street performances by masked dancers, like in the ‘Katti Pyakha’ in Patan, enact divine themes. The moving deities demand as much reverence as their static idols in the inner sanctum of temples. The book devotes a whole section to the importance of cultic masked dances where the performer is possessed by the spirit, and goes into a trembling trance.&nbsp; Some of this is now simplified and secularised into performances for tourists in hotels, but the genuine original masked dance troupes still parade down the streets, proving that ancient and modern are made to co-evolve in ways that only Kathmandu knows how.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260329140352_aace3ece2e2cc577aa478d83de4b34930e6ff9c088d5f5e3f02fa178d124a60d.jpg" data-media-id="editor_0" data-image-id="20260329140352_aace3ece2e2cc577aa478d83de4b34930e6ff9c088d5f5e3f02fa178d124a60d" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Newa theatre book details NT"> </figure>

All the world’s a stage in Kathmandu

Nepal is known internationally for its successful community forestry programme, and the country has doubled its forest cover to over 45% in the last 25 years.&nbsp; But the opposite is true for densely populated urban centres like Kathmandu Valley which have turned into concrete jungles, with no remaining open spaces. Air pollution is increasing to hazardous levels, and the urban heat bubble means the temperature in the city is 2°C-3°C higher than in the outskirts. But there is a solution with a proven track record from similar densely populated cities in Japan — the ‘Miyawaki Method’ of growing local varieties of trees in any small patch of land in the city and turning them into compact forests. Named after Japanese botanist Akira Miyawaki in the early 1970s, carefully selected native trees and plants grow in tiny plots of land, or even in household backyards. They regenerate degraded urban soil, and help restore some greenery and biodiversity back to sterile city centres. The group Lily Leaves has planted Miyawaki forests in six sites across Kathmandu, and is on a mission to green all the river corridors in the Valley. So far, it has planted more than 17,000 trees belonging to nearly 40 species in patches of land along the Bishnumati and Swayambhu, and is eyeing the UN Park area along the Bagmati. “It is extremely important to connect with nature and greenery in cities,” says Lily Katuwal of Lily Leaves. "Besides restoring nature, these forests also clean air pollution and reduce summer temperatures.” Unlike traditional reforestation where trees of the same species are planted in bulk at a distance of 3-4m, Miyawaki prioritises native varieties best suited to Kathmandu Valley’s microclimate. The saplings are packed densely together, spaced only 60cm apart. After they start growing, native grass and undergrowth also thrive. The most recent plantation was along the banks of the Bagmati in Sanepa where, in addition to camphor and jacaranda which are grown in the area, native species such as kabro (Ficus lacor), kanike (Forget-me-not), parijat (Night-flowering Jasmine or Coral Jasmine), chanp (Plumeria), harro (Ink Nut) and barro (Bahera) were planted. A new site in Kirtipur is being readied for the next plantation. Miyawaki has been carried out elsewhere in various parts of Nepal, primarily in Dhanusha which has seen forest regrowth that has brought back insect, bird, reptile and amphibian life.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120428_e70c196852945760d082fc73ee18ea6883d13c16186893c00c10fd0a0ea12105.jpg" data-media-id="editor_0" data-image-id="20260402120428_e70c196852945760d082fc73ee18ea6883d13c16186893c00c10fd0a0ea12105" data-rendition-name="original" width="1201" height="1600" loading="lazy" alt="Planting seeds for a greener Kathmandu"> </figure>  EMPOWERING WOMEN Lily Leaves employs just 17 women, six of whom have hearing disabilities. Many have been neglected or abandoned by their in-laws for various reasons. They have a livelihood and learn new skills so they can also find jobs elsewhere.&nbsp; “We trained them in plantation and other skills including tailoring, as well as jewelry, bag and reusable pad making,” says Katuwal. “They are now experts in planting trees.”&nbsp; Lily Leaves gets support from Pipal Tree International in the UK and Nepal, and hopes that the idea of compact urban forest spreads. This is especially important in areas like Taudaha, which is an important stopover for migratory birds. Once noted for its aquatic and avian biodiversity, Taudaha has become lined with concrete and has turned into a loud picnic spot. Urban expansion has encroached upon what used to be the floodplain of the Dhobi Khola, Bishnumati, Bagmati and Manohara rivers. The open spaces along the river corridors are being turned into green belts haphazardly. For many wards, the concept of green space is to have cement pavements and ornamental hard-to-maintain potted plants instead of allowing urban forests to grow back naturally. “Apartment buildings and housing colonies that are being constructed can include green spaces that can increase the real estate and rent value of property,” Katuwal says. “Engineers designing the buildings can suggest such changes so that we remain connected with nature.” Although Lily Leaves needs to have permission from local ward and municipal councils before implementing any program, it continues to face challenges in ensuring smooth coordination.&nbsp; In one such plantation along the Bishnumati River corridor, for example, a heavy earthmover uprooted young trees that were just beginning to thrive. Despite this setback, Katuwal’s team returned to replant them. The land mafia often covets the last remaining open spaces in Kathmandu, deploying local strongmen to try to take them over. &nbsp;They tear down fences, uproot saplings and loot tools. There is a lack of awareness about the importance of greening the city. But now that the former mayor of Kathmandu Balendra Shah is prime minister, national awareness could translate into more urban forests not just in Kathmandu but also in overcrowded urban centres across Nepal. Says Lily Katuwal: “We just plant the seed in people’s minds. Once people in the neighbourhood see that restoring nature lifts their quality of life and increases land prices, there is support. That is when the power of a good example spreads, and communities build on the idea.” &nbsp;

job-creation