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.

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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

After a week of violent and destructive protests, Nepal’s President Ram Chandra Poudel on Friday appointed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">former Chief Justice Sushila Karki</a> as a caretaker Prime Minister to lead an interim citizens' government.&nbsp; Poudel had been in <a href="https://nepalitimes.com/news/what-next-nepal">closed-door discussions since Thursday</a> with youth members who spearheaded the protests, constitutional experts, the House Speaker, and the Army Chief. There was a consensus on the choice of Karki as candidate for interim prime minister, but her swearing-in was stalled due to a disagreement about Constitutional processes for her appointment.&nbsp; Youth delegates and Karki demanded that Parliament be dissolved before the appointment of the caretaker prime minister, while President Poudel had been arguing that Parliament would be automatically dissolved once the new council of ministers announced elections. Representing the GenZ movement, <a href="https://nepalitimes.com/here-now/who-or-what-is-hami-nepal">Sudan Gurung</a> (pictured, below) is said to have insisted that dissolution of Parliament first was non-negotiable because he did not trust the political parties. He is said to have added that he would call his supporters out into the streets, and the President relented. The military’s warning earlier that an emergency would be declared if there was no agreement tonight clinched it.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091216098_cdd409c5824b578a04f05a43280e3f475d92bf7123d3a4565b4d720768fcc1b3.jpg" data-media-id="editor_3" data-image-id="2025091216098_cdd409c5824b578a04f05a43280e3f475d92bf7123d3a4565b4d720768fcc1b3" data-rendition-name="original" width="1080" height="600" loading="lazy" alt="Sudan Gurung"> <figcaption>Sudan Gurung of Hami Nepali during negotiations.</figcaption> </figure>  With this, Karki becomes Nepal’s first female prime minister, exactly a decade after she became the <a href="https://archive.nepalitimes.com/article/interview/a-woman-is-as-capable-sushila-karki,3375">country’s first female chief justice in 2016</a>.&nbsp; Nepalis, still shocked by the <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">death and destruction of the past week</a>, heaved a sigh of relief at the announcement, which was greeted as a victory of youth power for political reform led by the GenZ movement. Its initial anti-corruption protest on 8-9 September <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">spiralled out of control into violence and arson</a> nationwide that claimed at least 51 lives. Several other candidates were floated for the caretaker prime minister’s post. Kathmandu Mayor Balen Shah and former head of the electricity utility Kulman Ghising were being considered, but both declined possibly because they want to contest the next national elections. Given her experience in the judiciary and zero tolerance for corruption, Karki was the favourite of various groups within the GenZ campaign.&nbsp; The site of the negotiations moved to the official residence of the president in Shital Niwas from the Nepal Army Headquarters on Thursday. The Army had come under criticism on social media and from civil society for detaining the President and not letting him speak or be a part of the negotiation.&nbsp; This fuelled public perception that the military had a soft spot for a return of the monarchy. There were widespread rumours on Thursday that king Gyanendra, who was ousted after the abolition of the monarchy in 2008, was trying to stage a comeback by piggybacking on the agitation. Writing on X, senior journalist Kishore Nepal revealed that the Chief of Army Staff Ashokraj Sigdel had allegedly asked Poudel to step aside and pave the way for the military to negotiate, to which the President is said to have replied: “I will not resign. Kill me instead and blame it on the protesters. Then you can do whatever you like.” Live broadcast of swearing in of Sushila Karki:&nbsp; <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/53go4OxuOa0?si=Zd89QGIAX8-7Bm75" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091219094_41b0f97a5925ab6969e1413636bf073ae43262893a55d9c177cb1312dea52f0d.jpg" data-media-id="editor_8" data-image-id="2025091219094_41b0f97a5925ab6969e1413636bf073ae43262893a55d9c177cb1312dea52f0d" data-rendition-name="original" width="1280" height="851" loading="lazy" alt="Sushila Karki swearing in"> <figcaption>President ram Chandra Poudel swearing in Sushila Karki as the 42nd Prime Minister of Nepal.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091303098_8f2b6f98898c4cd73c271caa51b8e29d679a7385c249380aeb96d7cc2c3f6dba.png" data-media-id="editor_9" data-image-id="2025091303098_8f2b6f98898c4cd73c271caa51b8e29d679a7385c249380aeb96d7cc2c3f6dba" data-rendition-name="original" width="1480" height="924" loading="lazy" alt="Sushila Karki PM"> <figcaption>GenZ representatives with new Prime Minister Sushila Karki after her swearing in.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091301098_470dbca4f4d34ca4533ce4d160045ffe8e525e98380f6f1e20eb24a6236c6029.jpg" data-media-id="editor_10" data-image-id="2025091301098_470dbca4f4d34ca4533ce4d160045ffe8e525e98380f6f1e20eb24a6236c6029" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Sushila Karki PM"> <figcaption>Sushila Karki with supporters including Genz representative Sudan Gurung of Hami Nepal and Sumana Shrestha of Rastriya Swatantra Party.</figcaption> </figure>  COURAGE AND INTEGRITY Sushila Karki served as the chief justice between 11 July 2016 to 6 June 2017, and has been known for her frugal ways. She was a firebrand judge unafraid to ruffle powerful feathers, and as chief justice was behind ruling to impeach for abuse of office a powerful head of Nepal’s anti-graft body in 2016. She wrote that he had ‘<a href="https://archive.nepalitimes.com/regular-columns/Legalese/the-end-of-karkistocracy,827">neither the moral character nor qualifications for the post</a>’. Even before she became Chief Justice, Karki was one of the two judges on the bench that convicted the sitting Minister for Information and Communication, Jaya Prakash Gupta, of corruption in 2012. Then in 2016, a bench including Karki ruled against granting amnesty to former Maoist lawmaker and convicted murderer Bal Krishna Dhungel. Karki was born on 7 June 1952 in Biratnagar. She completed her undergraduate studies at Mahendra Morang College in 1972 before obtaining a postgraduate degree in political science from Banaras Hindu University in India three years later. This was followed by a Bachelor's in Law in 1978 from Tribhuvan University, and she started her law career as an advocate a year later. In 1985, Karki worked as a teacher at Mahendra Multiple Campus in Dharan, and was jailed for participating in the 1990 People’s Movement to overthrow the Panchayat absolute monarchy. She became a senior Advocate at the Nepal Bar Association in 2008 and was appointed an Ad-Hoc Justice at the Supreme Court in January 2009.&nbsp; On Thursday, there were supporters for other candidates for the post sloganeering against Karki’s nomination outside the Army Headquarters. Some on social media were also skeptical of her connection to the Nepali Congress (NC) party. Growing up in Biratnagar Karki was close to the family of B P Koirala, Nepal’s first elected prime minister in 1960. Her husband Durga Subedi was part of a group of underground Congress activists who hijacked a Royal Nepal Airlines plane in 1973, flying it to India to snatch cash belonging to Nepal Rastra Bank in the cargo hold.&nbsp; The money was used for the party’s pro-democracy campaign. Karki has no love lost for the political establishment. In April 2017, the governing coalition under Maoist Prime Minister Pushpa Kamal Dahal <a href="https://archive.nepalitimes.com/article/editorial/lady-justice-sushila-karki,3693">submitted an impeachment motion against her</a> after the Supreme Court overturned his decision to install a favoured police chief, violating succession based on seniority. It was a political move backed by Dahal’s coalition partner Sher Bahadur Deuba of the NC who was waiting to become prime minister for the 4th time. CHALLENGES AHEAD With Karki now in charge of the interim government, she has the daunting task of forming a council of ministers made up of amorphous and disparate groups from the GenZ, technocrats, and current politicians. Karki has said she will not prevent members of her cabinet from contesting elections, which means those with electoral aspirations like Kulman Ghising, Balen Shah and Sumana Shrestha could be asked to join. Karki has her work cut out as she has to get her team members to pull in the same direction to hold free and fair elections. She also has to make sure she has the support of the military without giving the generals too much say, while also smartly maneuvering Nepal’s precarious geopolitical ties with its giant neighbours, China and India. But most of all, the new prime minister must lay the foundations to not just physically rebuild the judiciary, executive and legislature but also ensure that elections will produce a more accountable and efficient government. Read also: <a href="https://nepalitimes.com/editorial/trial-by-fire">Trial By Fire</a>, Editorial

Madam Prime Minister of Nepal

Many had never heard of <a href="https://www.haminepal.org/">Hami Nepal</a>, the organisation that is part of the GenZ movement that did not just topple the government this week, but <a href="https://nepalitimes.com/news/what-next-nepal">pushed Nepal’s political system into new, uncharted territory</a>. It was part of an organic coming together of various youth groups fed up with Nepal’s corruption, mismanagement and lack of accountability. Hami Nepal and its GenZ comrades are now part of the negotiations with the Army to form an interim government. Hami Nepal is a non-profit dedicated to supporting communities and individuals in need, guided by its motto ‘For the People, By the People’. Its core mission is to assist individuals and communities in need, particularly during emergencies and crises, with a focus on directly connecting donors with recipients, and delivering aid efficiently and transparently. It was set up after the 2015 earthquake, but was formally registered and gained recognition in 2020 during the Covid-19 pandemic. Hami Nepal is led by 36-year-old civic activist Sudan Gurung who started the organisation after he lost his own son in the 2015 earthquake.&nbsp; Leading up to the events this week, it played a central role in guiding the demonstrations, using its Instagram and Discord platforms to circulate protest information and share guidelines. Other GenZ groups used their own WhatsApp groups and other fora.&nbsp; Among the 20 or so volunteers is Ronesh Pradhan, who spoke to <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">Nepali Times on 8 September </a>morning during the GenZ rally, before the violence escalated.&nbsp; “The voices of young people matter. We can’t keep being ruled by the same old men,” Pradhan said. “Our generation is the future and if there are older leaders in government, they need to be competent and accountable. We are ready to lead this country forward.” Hami Nepal’s earliest visible campaigns include donating more than 400 blankets to Bir Hospital’s Covid unit in 2022, creating a plasma and oxygen bank during the pandemic, and distributing school jackets to children in rural districts. More recently, it mounted a relief effort in response to the 2023 Jajarkot earthquake, reaching over 13,000 families with shelter, food, and medical support. The organisation was also associated with the two-month ‘Save Ghopa’ campaign, demanding effective and smooth administration of the BPKIHS (B P Koirala Institute of Health Sciences) in Dharan. The organisation was also actively engaged in providing rescue and relief during the Kagbeni and Sindhupalchok floods this year. It even sent aid to Turkey after its 2023 earthquake. After the Kavre floods last year, Hami Nepal donated solar lights. Funding for Hami Nepal comes directly from public donations, with a policy of channeling 100% of received funds for aid distribution. Volunteers self-finance administrative costs, and the group publishes detailed expenditure figures, regularly sharing updates and transparency reports through their social media and website which it launched at its Annual General Meeting in Bhaktapur last year.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88.jpg" data-media-id="editor_3" data-image-id="20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88" data-rendition-name="original" width="1080" height="719" loading="lazy" alt="Who, or what, is Hami Nepal?"> </figure>  Following the death of Nepali student Prakriti Lamsal at KIIT University in India earlier this year, Hami Nepal advocated for justice using its Instagram account, raising concern about the safety of Nepali students. Its advocacy platform started with rescue and relief, and Hami Nepal managed to develop a track record for efficient campaigns and transparency in Nepal’s humanitarian landscape. But its work pushed the group to realise that there was a deeper malaise in Nepali society. Its #youthsagainstcorruption campaign on social media platforms gained rapid momentum, and that led to the rally on 8 September. Read also: <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">Nepal’s 8 September massacre</a>, Shristi Karki The international #Nepobaby trend on TikTok propelled the rally even more, and young Nepalis used it to expose the scions of powerful politicians and politically-connected influencers who were exhibiting their flashy lifestyles on social media while citizens struggled with joblessness, corruption and poor service delivery. Public anger reached a tipping point when the UML-NC coalition led by Prime Minister K P Oli announced a sweeping ban on major social media platforms citing tax revenue, cyber security, and lack of content moderation. Netizens, civil society and media, however, saw it as the latest authoritarian attempt by the government to clamp down on free speech, increase surveillance of citizens and constrict Nepal’s open society. Susmita Khadka, 22, told us at the rally: “Politics is everywhere. Gen Z has the most platforms, and we want a revolution.” Leading up to 8 September, the GenZ movement disseminated information and reassured participants with volunteers readily available for help, medical support, and assistance. It put up a protest support helpline so that students needing assistance could get help. As the protests intensified, leaving at least 20 dead outside Parliament, and forcing Prime Minister K P Oli to resign, Hami Nepal shifted into a mediator role, engaging in talks with officials and seeking GenZ’s views on future leadership.&nbsp; Influencers like TikToker Nimesh Shrestha publicly backed the group, amplifying their voice in ongoing negotiations with the Nepal Army alongside other GenZ representatives. However, as the protests escalated on 9 September, <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">resulting in massive arson and vandalism of public and private property</a>, many GenZ activists disavowed association with the attackers, saying their movement had been infiltrated. The group backtracked, with Gurung saying he was not the leader of the protests.&nbsp; Meanwhile, others accused Hami Nepal for singlehandedly speaking with the Army chief, and said that they did not represent GenZ’s collective voice. Most GenZ supporters backed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">Former Chief Justice Sushila Karki</a> as their candidate for interim prime minister in an online group. Not everyone in the GenZ movement agrees with that choice, with support for Kathmandu Mayor Balen Shah, even though he has endorsed Karki’s appointment. Dharan Mayor Harka Sampang rushed to Kathmandu on Wednesday to push his own candidacy. Hami Nepal has supported Balen Shah to lead the country for the next five years, not just during the interim period, and have called on the public to share their posts supporting Shah to amplify the message. With the old guard gone, there is a power vacuum with multiple actors with competing interests to fill it. GenZ’s youth-led activism has brought new energy for political reform, but its real test begins now — whether it can unite Hami Nepal and other sections to negotiate with the Nepal Army.&nbsp;

Who, or what, is Hami Nepal?

As this story is being uploaded on Wednesday evening, sloganeering is going on outside the gates of the Nepal Army headquarters in Kathmandu between various GenZ groups about who should be the caretaker prime minister.&nbsp; The GenZ campaign includes Hami Nepal and several other groups that spearheaded the anti-government rally this week against corruption and neoptism. Thirty people died as the protests in Kathmandu turned violent on Monday and Tuesday. After Prime Minister K P Oli stepped down on Tuesday, Nepal has existed in a power vacuum, with no one really in charge. The Nepal Army took over security management from Monday night, and President Ram Chandra Poudel appealed to Nepali youth to come to the negotiating table.&nbsp; Thousands of GenZ youth held hours long discussions on Discord and other online fora on Wednesday, and voted to endorse former Chief Justice Sushila Karki to lead the transitional government. The group informed Chief of Army Staff Ashokraj Sigdel about their choice, but he has also been meeting leaders of at least 12 other groups claiming to be the genuine GenZs. Among them are royalist and other groups that many saw as having infiltrated the GenZ rally on Monday in which 20 people were killed while trying to storm Parliament.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910170936_4efefa67f54228154d316ca692838c3d0c078f5f9ec96ea68cfc4ca740f4df4d.jpg" data-media-id="editor_0" data-image-id="20250910170936_4efefa67f54228154d316ca692838c3d0c078f5f9ec96ea68cfc4ca740f4df4d" data-rendition-name="original" width="640" height="387" loading="lazy" alt="Sushila Karki"> <figcaption>Photo: SHAHIDUL ALAM</figcaption> </figure>  On Tuesday, disparate groups joined the arson and looting that ended up gutting Singha Darbar, the Parliament and Supreme Court buildings and attacks on party offices, media, schools and private residences across the country. The original GenZ disavowed involvement.&nbsp; 'Nepal's 2015 Constitution does not envision any transitional or emergency provisions to address a state of political and constitutional vacuum. For now, the President, per Article 273 of the Constitution, can exercise emergency powers in light of the current situation,’ wrote former National Human Rights Commissioner Mohna Ansari on social media on Wednesday evening. The President can declare a state of emergency per Article 273 of the Constitution, but that must be endorsed by a two-third majority of Parliament within a month, after which it will be in effect for three months. ‘Former Chief Justice Sushila Karki is the best option to address the adverse circumstances prevailing in the nation. The President must heed the Constitution and take the next steps in a manner that is transparent, keeps the public informed, and is in the national interest,’ Ansari added.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910140912_019d62de4b62a366299a27d1276e931a7dadefcc674441e7fb3acd503970efaf.jpg" data-media-id="editor_1" data-image-id="20250910140912_019d62de4b62a366299a27d1276e931a7dadefcc674441e7fb3acd503970efaf" data-rendition-name="original" width="8000" height="5760" loading="lazy" alt="Nepal in ashes"> <figcaption>Photos: KAMAL PRASAI</figcaption> </figure>  The Gen Z movement itself appears fragmented and without distinct leadership, both before the anti-corruption protests on 8 September and in the aftermath of the two-day protests.&nbsp; Various groups are said to have met or waited to meet the Gen Sigdel on Wednesday. The Army told others claiming to be GenZ and raising slogans against Karki’s candidacy to appear at the army headquarters on Thursday.&nbsp; Nepalis had floated the names of some of Nepal’s more acceptable public figures to lead a caretaker government, including Kathmandu mayor Balen Shah. But Shah told the Army chief he endorsed Sushila Karki’s nomination. <div class="embed-block"><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2FbalenOfficial%2Fposts%2Fpfbid02M9CBZiWETz4qocKaYUG6ZSZ4ARNcq231V8edJJVGQhPLmpSRMdv1mTWM2q7mJijjl&show_text=true&width=500" width="500" height="256" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share"></iframe></div> The names of former NEA chief Kulman Ghising and ex-education minister Sumana Shrestha of the RSP had also been proposed.&nbsp; Polls conducted on social media to gauge public sentiment show a significant number are open to Sushila Karki taking charge of a transitional government. Both Shah and Shrestha are not so keen, and are probably waiting to contest elections.&nbsp; Meanwhile, Nepal’s young reform campaigners largely seem to reject the idea of handing leadership to RSP chair Rabi Lamichhane who was retrieved by supporters on Tuesday from Nakhhu jail after eight months of incarceration for embezzling depositers of cooperatives. But even as GenZ held discussions with the Army chief to decide on the interim government, other interest groups have continued to engage as well. Erstwhile royalist businessman Durga Prasai, posted a photo of himself with Sigdel on social media and professed that he has 'no interest' in leadership and would accept whomever GenZ youth chose. The job of the caretaker government, whoever leads it, will primarily be to hold free and fair elections for a new leadership which will then face the challenge of reestablishing Nepal’s democratic institutions.&nbsp; “The course of events showed that the movement has gone beyond Constitutional remedy,” political analyst Krishna Khanal told BBC Nepali following erstwhile Prime Minister Oli’s resignation on Tuesday. “There needs to be a middle-ground solution that will be acceptable to the people who took to the streets while upholding the existing constitutional process.” Various GenZ collectives have issued demands that include the dissolution of Parliament and the formation of a new civilian government, which analysts say are antithetical. Constitutional experts have suggested that the youth opt for a solution that allows for new leadership to move forward under the current Constitution.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910140912_e6bf05bfe95f519e05ab8d9016587211b241340fd23a0f9ae728e74747fc5f29.jpg" data-media-id="editor_3" data-image-id="20250910140912_e6bf05bfe95f519e05ab8d9016587211b241340fd23a0f9ae728e74747fc5f29" data-rendition-name="original" width="8064" height="6048" loading="lazy" alt="Nepal in ashes"> </figure>  One option, they say, is for the President to appoint any prime minister from the existing Parliament under Article 76(5) if all other measures fail, who would then have the authority to appoint up to 25 non-elected ministers for six months. This can be a way for that temporary leadership to hold elections within the mandated time frame. The existing Constitution can then be amended to accommodate the aspirations of the Nepali youth after the election.&nbsp; But any conditions put forward by GenZ youth that requires a new Constitution might set Nepal back years, warn some experts. The 2015 Constitution was the result of nearly 10 years of negotiations and strife, and the formation of another charter will mean that Nepal will head into decades more of rotating governments and political instability. For now, Nepali youth need to unite to decide by Thursday who leads the country into the next phase.&nbsp;

What next, Nepal?

Edited: The paragraph about K P Oli's whereabouts has been deleted. On Wednesday morning, orange flames are still leaping out of the windows of Singha Darbar. Fire trucks which could finally make their way in, were trying to douse the fires. Most of the ministries inside Singha Darbar, including the Prime Minister’s Office, are charred hulks. Singha Darbar’s imposing west facade built by Chandra Shumsher Rana 117 years ago and the hall where he met visiting foreign envoys was destroyed in the 2015 earthquake. It was restored last year to its original splendour with stained glass windows and an ornate ceiling. After demonstrators entered the central government secretariat on 9 September they set the entire complex on fire. Dozens of SUVs and cars that were smashed and burnt litter the parking lot.&nbsp; Across to the south at the Supreme Court, a fire truck belonging to Kathmandu Metropolitan City is trying to put out the flames. The building is still smoking, and hundreds of case files have gone up in flames. There is now also a threat from escaped prisoners from jails all over the country.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100936_fd21ff82606c8ab6ec729b3758edb70e7f4498004d71ba7a857a86c9fb75f786.jpg" data-media-id="editor_0" data-image-id="20250910100936_fd21ff82606c8ab6ec729b3758edb70e7f4498004d71ba7a857a86c9fb75f786" data-rendition-name="original" width="1600" height="1066" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>Supreme Court sustained heavy damages following Tuesday's arson.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100932_6c36bde0847f90934f6a40086a92573c1eec8f2967a4ddc59d79a56c08495628.jpg" data-media-id="editor_1" data-image-id="20250910100932_6c36bde0847f90934f6a40086a92573c1eec8f2967a4ddc59d79a56c08495628" data-rendition-name="original" width="7008" height="4672" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>Nepal Army cleaning up the debris outside the main gate of Singha Darbar.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091010098_f4c7d857ae1111968223d20ad02bda6ac0127a3fe4caaa779b35d0e8f07b3529.jpg" data-media-id="editor_2" data-image-id="2025091010098_f4c7d857ae1111968223d20ad02bda6ac0127a3fe4caaa779b35d0e8f07b3529" data-rendition-name="original" width="7008" height="4672" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>The grand staircase leading to the upper balcony of the Parliament building.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100916_39154c14faa25b5a8838f75c9cb4aa7505f228bd344e19c8e29209cebfb25d46.jpg" data-media-id="editor_3" data-image-id="20250910100916_39154c14faa25b5a8838f75c9cb4aa7505f228bd344e19c8e29209cebfb25d46" data-rendition-name="original" width="6526" height="4350" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>Nepal Army armoured car guarding the Baneswor intersection outside Parliament.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100916_1dabfef07b909c916aa462b7c0bb62a1db96ebe4f0b52d61f71140edffd429f4.jpg" data-media-id="editor_4" data-image-id="20250910100916_1dabfef07b909c916aa462b7c0bb62a1db96ebe4f0b52d61f71140edffd429f4" data-rendition-name="original" width="6677" height="4451" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>The row of electric vehicle showrooms in Thapathali were all torched with the cars inside.</figcaption> </figure>  Interestingly, the under construction Supreme Court, and the newly-built Parliament Complex are untouched. The current Parliament is housed in the Birendra International Convention Centre (BICC) built by the Chinese in 1993, and was the first target of protesters on 8 September. Outside its gates was where 20 students were shot and killed as they tried to storm the gates. After Tuesday’s mayhem, Kathmandu’s streets are now under control of the Nepal Army which has imposed a nationwide curfew. K P Oli was whisked out of his official residence in Baluwatar on Tuesday.&nbsp; Tuesday and Wednesday saw additional 8 casualties, including policemen who were lynched in Tinkune and Budanilkantha.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100916_1e93335333741ec809cff95e27e7b714bfea6af527c94c6f74f7cbd311562bbf.jpg" data-media-id="editor_5" data-image-id="20250910100916_1e93335333741ec809cff95e27e7b714bfea6af527c94c6f74f7cbd311562bbf" data-rendition-name="original" width="6539" height="4360" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>The parking area of the Department of Roads with a row of charred cars (also below).</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100920_a3e5a54cf11411c8b81a7b2a01c0f43bff451f343b7b2ce35de70d5719f35d30.jpg" data-media-id="editor_6" data-image-id="20250910100920_a3e5a54cf11411c8b81a7b2a01c0f43bff451f343b7b2ce35de70d5719f35d30" data-rendition-name="original" width="7008" height="4672" loading="lazy" alt="Raising Nepal from the ashes"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250910100920_e75830d7d0e87dc8c451be3caccf1f00ef858b8299a20fe8c7dc8805d83a82aa.jpg" data-media-id="editor_7" data-image-id="20250910100920_e75830d7d0e87dc8c451be3caccf1f00ef858b8299a20fe8c7dc8805d83a82aa" data-rendition-name="original" width="6726" height="4484" loading="lazy" alt="Raising Nepal from the ashes"> <figcaption>A police vehicle set on fire by demonstrators at Patan Darbar Square on Tuesday.</figcaption> </figure>  The Army is negotiating with the president and representatives of the GenZ campaign that includes Hami Nepal group that organised the protests to form a new government. Kathmandu Mayor Balen Shah and former Supreme Court Chief Justice Sushila Karki have been named as potential candidates to lead the new government The Civil Aviation Authority of Nepal has decided to keep Kathmandu airport closed for all domestic and international flights ‘until further notice’. Update: The video of a flight attendant speakling on social media has now been found to be fake. The error is regretted.&nbsp;