Libya, Greece, Spain, China — videos of catastrophic floods have flooded the international media.&nbsp; Floods swept away most of the Libyan city of Derna, killing more than 11,000 people. Climate change was blamed, but it was also caused by war and unheeded warnings about weak dams. The disasters are a warning to Nepal where a range of factors could worsen monsoon flooding in the coming years. The Melamchi flood in 2021 that nearly destroyed Nepal’s largest infrastructure project, and this monsoon’s destructive floods in eastern Nepal show that these disasters are already happening.&nbsp; But every monsoon there is also a flood of recrimination in India about Nepal releasing water on its rivers and unleashing floods — even though there are no reservoir projects and sluice gates on two border barrages on the Kosi and Gandaki, both controlled by India. &nbsp; Yet, every monsoon the media in the Indian states of Bihar and Uttar Pradesh are full of headlines blaming Nepal.&nbsp; Read also: <a href="https://nepalitimes.com/news/the-kosi-returns-to-its-old-ways">The Kosi returns to its old ways</a> The 2008 flood that affected 2.3 million people in Nepal and India was actually caused by a breach in the eastern embankment of the Kosi. The rain that year was not even heavy, so one wonders what would happen in a year when there is abnormal precipitation in the Kosi catchment.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023092204098_d8c61f36859d2d0f2aef053ea1c5a15358d618a3d8b2e772dba7ba06e8d38e0b.jpg" data-media-id="editor_1" data-image-id="2023092204098_d8c61f36859d2d0f2aef053ea1c5a15358d618a3d8b2e772dba7ba06e8d38e0b" data-rendition-name="original" width="2500" height="1667" loading="lazy" alt="Kosi NT"> <figcaption>Photo: GOPEN RAI</figcaption> </figure>  “After the completion of Kosi Barrage in the 1960s, the embankments have collapsed about eight times until now, but the major one was 2008,” says Ajaya Dixit, a water expert.&nbsp; In 2008, the Indian media had ill-informed headlines like ‘Nepal opened the Kosi Barrage’ which has affected public opinion. The real story is about faulty engineering of the barrage and its embankments on the Kosi, which is a river with one of the highest sediment loads in the world. Eklavya Prasad, water campaigner who is with Megh Pyne Abhiyan in Bihar, says it is unreasonable to blame Nepal for annual floods in India. He explains: “Geographically, a large number of Himalayan rivers flow down from Nepal and discharge the waters and sediment into the north Bihar region. It is a natural drainage path that flows across the international boundary and beyond human capabilities.” Read also: <a href="https://nepalitimes.com/here-now/the-kosi-s-sorrow-and-scope">The Kosi’s sorrow, and scope</a>, Kanak Mani Dixit Kosi, also known as Sorrow of Bihar, is notorious for frequently changing its course. In the last 200 years, the Kosi has gradually shifted 120km westwards. “River always chooses the path of least resistance. And when it doesn’t get to flow, it forces its way through,” says Dixit.&nbsp; Ignoring this nature of the river when infrastructure and new settlements are designed on old floodplains is what has increased the intensity and impact of floods. In many ways, it is the same reason Kathmandu gets flooded every monsoon. Infrastructure has been sited along floodplains constricting rivers such that even moderate rain becomes destructive. “All of the 56 floodgates of the Kosi Barrage are operated by the Bihar government, and if they fail to open the Nepal side is flooded. If they are opened, the flood goes downstream,” says Dwarika Nath Dhungel, former secretary of the Ministry of Energy, Water Resources and Irrigation. Read also: <a href="https://nepalitimes.com/here-now/the-geopolitics-of-nepal-s-water-and-electricity">The geopolitics of Nepal’s water and electricity</a>, Ramesh Kumar Although there is no clear clause on the operational right of the barrage in the agreement between Nepal and India, on the Kosi Project, Dhungel surmises that a subclause is being used by India to manage the barrage. Says Dhungel: “The same clause also uses the word 'maintenance' of barrage here, but there has been no maintenance effort from the Indian side.” The barrage impounds water forcing the river to deposit its sediment behind it so that the river is now flowing a few metres above the surrounding land — increasing the dangers of floods.&nbsp; The solution to transboundary floods is to look at the river system in totality. If India and Nepal are to prepare for cataclysmic water disasters in the future, the two countries must work together. The ‘national interest’ in harnessing Nepal’s rivers must be based on bilateral benefit. Says Ajaya Dixit: “Studying the nature of the rivers, not just where it floods but also from where it originates, and incorporating these elements while building infrastructure can minimise the risk of river-related disasters.” Read also: <a href="https://nepalitimes.com/here-now/india-nepal-ignore-climate-crisis-in-river-talks">India, Nepal ignore climate crisis in river talks</a>, Ramesh Bhushal

Pinki Sris Rana

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

thumbnail

viewImage

A flood of recrimination

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06359c7e80680e0a5f4ejpeg.jpg" alt="" width="1920" height="1080"/><figcaption>The Kosi Barrage on the Indian border where the river funnels out into the inland delta in Bihar.</figcaption></figure><ul><li>Three decades after it was first proposed, a 26.5km tunnel starts supplying water from Melamchi to Kathmandu.</li> <li>A <a href="https://www.nepalitimes.com/banner/drones-to-the-rescue-in-melamchi/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/drones-to-the-rescue-in-melamchi/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNEISH8LehEm5nAihrdyEOSDxSXsUg">deadly flood</a> on the Melamchi-Indrawati in Sindhupalchok on 16 June kills at least 27 people, and destroys infrastructure.</li> <li>The much-delayed 465MW Upper Tama Kosi hydropower plant starts feeding electricity to the national grid.</li> <li>SJVN says it has completed half the work on the 900MW Arun III project and the Investment Board awarded it another contract to develop the 679MW Lower Arun as well.</li> <li>Work has begun on the Sunkosi-Marin Diversion, to channel water to the Bagmati Basin and irrigate much of Province 2.</li></ul>All five events have one thing in common: they are all on the trans-boundary Kosi Basin that drains 75,000 sq km of territory in China, Nepal and India.Last week, I was standing on the Pati Bhanjyang ridgeline at the northeastern rim of Kathmandu Valley. Pour a glass of water on one side, and it flows westwards into the Gandaki River Basin. On the other side the streams drain into the Melamchi, which meets the Indrawati, then the Bhote Kosi to become the Sun Kosi that flows 200km eastward until it merges with the Arun and Tamor to form the Sapta Kosi.At that point, the river makes a tight turn south to tumble into the Kosi megafan in the Tarai and Bihar to finally to join the Ganga at Kursela. The Kosi, in fact, is the largest tributary of the Ganges, bigger than the Gandaki, Karnali, Jamuna, and even bigger than the Ganga itself as it debouches into the plains at Haridwar.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06389c7e80680e0a5f4fjpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>The Kosi’s origin in Nepal is near Kathmandu. But it largest tributary, the Arun, originates in Tibet where it is called the Phung Chu, makes a mighty arc in Tibet and cuts through the Himalaya between Mt Makalu and Mt Kangchenjunga to meet its siblings Sun Kosi and Tamor at Tribeni.Geologists say rivers like the Arun that slice through the Himalaya are older than the mountains, and cut their way through as the terrain rose over millions of years with the collision of the India and Eurasian tectonic plates.The Kosi watershed therefore drains an enormous vertical landscape stretching from Mt Xixapangma which lies just 80km on the other side of the Himalaya in China, both sides of Mt Gauri Shankar (Chomo Tseringma), Mt Everest and Mt Makalu, as well as the western slopes of Kangchenjunga. Six of the world’s 13 peaks above 8,000m are therefore a part of the Kosi catchment.These mountains block the monsoons, and in eastern Nepal their southern slopes get more than 3,000mm of rain a year, weathering them down relentlessly, making the sedimentation load of the Kosi the heaviest for any river in the world.The topography of this mighty river has shaped Nepal’s history and culture, and can determine the country’s future prosperity as well. But only if we respect its geology, hydrology and the climate of its basin.Watershed expert Madhukar Upadhyay says, “We have not even begun to understand the hydrological and geological specificities of our mountains and rivers and yet are rushing headlong into ever-larger infrastructure development. Nepalis will still be here 500 years from now, what kind of country and landscape are we leaving behind for them?”Last month, landslides blocked the Melamchi-Indrawati, unleashing a deadly debris flow that destroyed infrastructure, homes and livelihoods. It imperilled <a href="https://www.nepalitimes.com/here-now/light-at-the-end-of-the-melamchi-tunnel/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/light-at-the-end-of-the-melamchi-tunnel/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNEaXQ5HnjB92xgkbHBEnnbl5xiwow">the Melamchi project</a>, and its tunnel supplying water to Kathmandu was saved only because the gates were closed for maintenance just hours before the onrush.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d063c9c7e80680e0a5f50jpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>This week, the Upper Tama Kosi project started generating electricity, that will provide one-third of Nepal’s total power demand. But there was a scare just days before the inauguration: China informed Nepal that a massive landslide had blocked the river upstream, threatening the Rs55 billion project. Fortunately, the river found its way around the blockage. The near escapes of the Melamchi and Upper Tama Kosi sites make us take Upadhyay’s warnings seriously.Other <a href="https://www.nepalitimes.com/latest/monsoon-hits-nepal-with-a-bang/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/monsoon-hits-nepal-with-a-bang/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNHkbbDluGypXbbgC1BQxVAVndFTvA">flash floods this year </a>in Manang, Kaski and Lamjung also showed that while our rivers hold great promise, we ignore the risk to settlements and major infrastructure along their banks. Our engineering methods have been inherited from the West, and do not account for cloudbursts and extreme Himalayan weather events. All these risks have been exacerbated by climate change.In Melamchi, the power of the flood last month is evident in the steel hulk of the Indrawati Bridge that lies crumpled in the muddy river 100m downstream amidst room-sized boulders. The new sand bank is 25m thick, indicating the flood’s maximum height.It is not clear what happened, for a bishyari or two (bursting of a landslide-damming of the river) would not be enough to generate such a massive debris flow. Some speculate there may have been centuries-old glacial deposits which suddenly got released through a combination of earthquake weakening and heavy rain.We also saw that <a href="https://www.nepalitimes.com/banner/after-the-deluge-in-nepal/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/after-the-deluge-in-nepal/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNFAaYeK5lUf9eY4-j8mOHnFIUOT5A">Melamchi Bazar </a>had expanded into the river’s flood plain, with buildings in place of rice paddies, which added to the loss of life and property. Less than a month after the disaster excavators and tipper trucks are already on the Indrawati river bed, scooping up sand and boulders to feed Kathmandu Valley’s voracious appetite for construction material.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06409c7e80680e0a5f51jpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>It is the Kosi’s Melamchi tributary that augments Kathmandu’s water supply, while the sand and boulders from the Indrawati, Sun Kosi, Bhote Kosi and Rosi fulfil the Valley’s demand for sand and aggregates.While earthquakes, floods and landslides are seen as ‘natural disasters’, and indeed they are to some extent, they become ‘man-made’ calamities with unregulated sand-mining of rivers, quarrying on steep slopes, and haphazard road-building.The highway along the Indrawati is crowded with sand-laden tipper trucks bound for Kathmandu. Downstream towards the Kosi Barrage along the BP Highway, the road follows the river past the site where a part of the Sun Kosi is to be channeled through a 13km tunnel to irrigate farmlands in the Tarai of Province 2. A similar inter-basin diversion scheme on the Kali Gandaki is now pitting Gandaki vs Lumbini Province, and the central government.We finally get to the new bridge across the Sapta Kosi at Chhatara, connecting Udayapur and Sunsari districts. This is exactly the point where, after its epic journey from the Tibetan Plateau and between the highest mountains in the world, this great river fans out into the plains.https://youtu.be/34lmOgPv-zkNorth of the bridge is the site of the proposed mammoth <a href="http://archive.nepalitimes.com/news.php?id=2413#.YOQRoi8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D2413%23.YOQRoi8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNF86VG9E0i8u5OqfG5NvKJKILpBEA">Kosi High Dam</a>. The 300m high dam will create a reservoir submerging huge tracts of the Sun Kosi, Arun and Tamor Valleys in a kind of ‘trishul’. India needs the dam for flood control, and to facilitate inland navigation by storing monsoon water and discharging it in the dry season. But there are many questions regarding the proposed mega project.To begin with, the high silt load means that a future Kosi Reservoir would soon fill up with sediment. There are alternatives to dams: people in the Kosi plains have learnt to live with annual floods which deposit valuable soil nutrients, and diverting water through earlier river channels would ease flood impact.The village of Hanuman Nagar had to be relocated because of the barrage, and 60 years later some of its families and those further upstream have still not got compensated. The barrage also destroyed an important wetland, and <a href="https://www.nepalitimes.com/banner/the-great-trans-himalayan-bird-migration/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/the-great-trans-himalayan-bird-migration/&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNFOCjdWAUhLv8LM1mLEnBNbFZeVHQ">migratory birds </a>now alight in <a href="http://archive.nepalitimes.com/news.php?id=15974#.YOQSqy8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D15974%23.YOQSqy8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNH9ndET9JXr1SU0_SRmfnAXaLeZ5A">Kosi Tappu Wildlife Reserve</a> instead.Extending the reserve further north and south could increase the habitat of endangered arna, wild elephants and freshwater dolphins, encourage ecotourism, and provide income to villagers whose grandparents had to move.The 60-year-old embankments that jacket the Kosi upstream and downstream from the Barrage have created the potential for a massive future disaster, an inland tsunami. Because of the river’s heavy silt content, the Kosi now flows on a deck 3-4m above the surrounding land. <a href="http://archive.nepalitimes.com/news.php?id=15163#.YOQR6y8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D15163%23.YOQR6y8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNELQRpfAALk_H4uMYlUohTJDiWrQg">In 2008, the Kosi breached the eastern embankment </a>at Kusaha, causing <a href="http://archive.nepalitimes.com/news.php?id=15193#.YOQTGy8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D15193%23.YOQTGy8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNGQbFvez-8I6Bv7_rYVwfQpczaNAg">destruction </a>downstream in Sunsari and Bihar. And that was when the river was not even in spate.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111015118/636d06439c7e80680e0a5f52jpeg.jpg" alt="" width="1920" height="1080"><figcaption> </figcaption></figure>With extreme weather caused by climate change, or a confluence of cloud-bursts in the mountain catchment, <a href="http://archive.nepalitimes.com/news.php?id=3526#.YOQSOy8RoWo" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D3526%23.YOQSOy8RoWo&amp;source=gmail&amp;ust=1625725666191000&amp;usg=AFQjCNEvH8AZlBKUPb68a4OulBhpsm0Q2w">a record-breaking flood in future</a> could cause an engorged Kosi to bypass the barrage altogether and unleash a catastrophic flood downstream.The Kosi Barrage was meant to be a temporary solution, and the Kosi High Dam was always in the minds of the Indian authorities. There is a need for transparent and independent study by water experts, social scientists and technocrats to study the pros and cons of the Kosi High Dam.Siltation, seismicity, adaptation and mitigation, all need to be factored in with projected future climate impact. Meanwhile, across the world, ecologists are warning that the price to pay for large dams is too great because of the destruction of river ecosystems.A massive rockfill dam on a seismically active zone, the geopolitical implications as well as the social and environmental costs may outweigh the planned benefits. To make up for the mistake of the Kosi Barrage, we may be making an even greater blunder with the Kosi High Dam.

The Kosi’s sorrow, and scope

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

Visit Nepal in the monsoon

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

Nepal’s bubble economy

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

Flouting rules caused Saurya tragedy

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

kosi-barrage

A flood of recrimination

The Kosi’s sorrow, and scope

Visit Nepal in the monsoon

Nepal’s bubble economy

Flouting rules caused Saurya tragedy

Walking, working, worshipping in Patan