Nepali Times: How did this transition from banking to politics happen so suddenly? Anil Shah: I worked in the banking sector for 31 years, 17 of them as a CEO. The primary reason I left is because I have always been vocal about young people needing a chance at leadership. And it did not seem fair to keep expressing that opinion while I held on to my own position. I then wanted to move on to something new, and set up Lead Nepal Inc, the objective of which was to craft leaders. For a year, I shared my three-decade leadership, management, motivation and team-building experience with political parties, law enforcement and military, private organisations as well as students. Around that time, my daughter graduated in New York and we planned to go to Boston to visit friends. We were crammed in an Uber in New York on the way to the train station and during the ride, the driver looked at the rear view mirror and asked if I was Anil Shah. He turned out to be Nepali who eventually asked why someone like me had not entered politics. I replied that I was not interested. He was emphatic that people like me needed to bein government.&nbsp; I told him that politics was not for me, but he made me a promise — if I were to get into politics, he would donate $1,000 to me and he had 100 other friends who were willing to donate the same amount. The gentleman’s name is Mangal Shrestha, and I thanked him when we got off at the train station. I thought his heart was in the right place, but I did not take him seriously. Read also: <a href="https://www.nepalitimes.com/banner/arnico-panday-the-political-scientist">Arnico Panday, the political scientist</a> The day after I joined the Rastriya Swatantra Party (RSP) I got a message on Facebook (from Mangal Shrestha) asking where he could send the money he had promised me. At that moment, his hope, and the hopes and aspirations of Nepalis like him, touched me deeply. In Boston, I met Nepali students at Harvard, MIT, and Tufts. One of the students said they were tired of me complaining for 15 years about how our politics was a dirty pond that no one was willing to clean up. I needed to either stop talking about it or wade into the dirty pond myself and try to clean it up, he said. Should you decide to get into politics, we are with you. It was a culmination of various conversations like this that touched me and made me question why I could not take this step. Then came the question of where to go. And I think RSP was a good fit for me, because they are new to politics just like I was, and their vision and thought process sort of matched with mine. I thought if I was going to make a jump into this pond, these are the people I want to do it with. I was reminded by Mangal Shrestha him of the Nepali spirit of honesty and integrity. He could have forgotten about his promise, but he reached out to me. This told me two things: the first was the hope that not only I, but the RSP as a whole had given people like him. The interaction also showed me was the state of despondency people feel about what is happening to our country, the hopelessness that a Nepali Uber driver in Manhattan feels about returning. I think it reflected the thoughts of a lot of the youth regarding the visions of the RSP and its aspirations towards the people.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2023080608080_02e108f695e02a5472ba5cf2a3ac19ad9b0a15c504b31021e9d3fdc0d3694e7b.jpg" data-media-id="editor_1" data-image-id="2023080608080_02e108f695e02a5472ba5cf2a3ac19ad9b0a15c504b31021e9d3fdc0d3694e7b" data-rendition-name="original" width="2000" height="1456" loading="lazy" alt="Anil Shah RSP"> <figcaption>Photo: GOPEN RAI</figcaption> </figure>  Did you have to think a lot about whether it would be the RSP or maybe RPP or Bibeksheel? Definitely. Coming back and joining the RSP was not my first thought. My knee-jerk reaction would have been to join the Nepali Congress because my family has historically been closer to NC. <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/the-rana-reign-a-recap-of-history,3751">Subarna Shamsher Rana</a> is my wife’s grandfather. But it was not a question of joining a party for a position, or to use family legacy. I wanted to join politics to try and actually do something. The RSP has made you the head of its training department. Do politicians need training? Politicians do think that they should be the ones giving training, not getting it. That is why our country is where it is right now. However, our party does not have politicians, it has ordinary citizens like myself who want to do something for the nation. And the best thing is that a lot of RSP members— parliamentarians and Central Working Committee members alike— reached out to me to say that they were willing and glad to be trained because they wanted to learn to become better leaders. That kind of positive attitude is a start. A few days ago our party chair Rabi Lamichhane, parliamentarians, CWC members and other leadership sat down and discussed our training visions for leadership. We looked at our strengths and weaknesses and how we can individually contribute to the party. All of this makes me believe that I am in the right place. What kind of training do leaders need? Training is not one-size-fits-all. For the parliamentary party and the Central Committee, it is a training of synergy, team building, teamwork, and confidence building, all so that we can work together as a cohesive unit. At the end of the day, even though we are a political party, we are a startup. So when we go to the provinces, the training focuses on introducing the party and our Constitution, our vision, our culture. When we go to people who want to stand for elections, at any of the three levels, we explain what leadership is, and what one is expected to do when the party is in leadership, what our role will be when we are the opposition. We train people about how to express criticism that actually adds value and moves elected leaders in the right direction. Meanwhile, we have our ‘Mission Chaurasi’, because we are clear that we are going to run the country after the next elections in 2084 (2028). This is because we cannot be trying to figure out what to do and how to lead once we are already elected and waste another two years in the process. That is why we are taking these years to prepare. The question we always ask ourselves is not what to do or how to do it, it is why we are here. We are not like other cadre-based political parties, and we cannot forget why we exist. We are still figuring that out. I tell people that I have not joined politics, I have joined people-tics. Nepali politics has been plagued by leg-pulling, an unwillingness to compromise, and infighting. Can they be trained to change that? You cannot teach old dogs new tricks. But the RSP is still a puppy, so what our entire team learns now is going to be really crucial and we want to learn the right values and skills. This is a country of countless leaders, but the RSP wants to create value-based leadership from the roots at all three levels of government, which entails humble, value-based leadership. I start off by saying that if service is beneath you, leadership is beyond you. In Nepal, I find once you become a leader, service becomes something that is seen as shameful. But leadership is about service. It is not about being in charge, it is about being responsible for the people in our charge.&nbsp; What is the difference between training bankers and politicians? The core of political leadership is about the people you surround yourself with. And what I like about our chair Rabi Lamichhane is that he welcomed people like myself, <a href="https://www.nepalitimes.com/here-now/nepal-needs-to-rebrand-itself">Dr Swarnim Wagle</a>, Shishir Khanal, Manish Jha and Dr Toshima Karki. If he had just wanted to rule, he would never bring people like us into the party, he would always have people who look up to him and surround himself with yes men. I have been in corporate meetings, and meetings of other political parties, and there is always free dialogue and conversation within the RSP. Our weakness is perhaps a lack of structure but there is no lack of open dialogue and discussion. You said you were inspired by the diaspora, but there are more Nepalis leaving, many of them for good. What do you say to them? I used to always think and tell <a href="https://www.nepalitimes.com/here-now/nepali-family-spread-across-kuwait-cyprus-uae">people who went overseas</a> to come back, make a life in Nepal, and do something for the country. When I once said this to a labour migrant, he replied that while I had come from a well-to-do family, he did not have the same privilege of coming back home to stay off work and spend time with family without there being consequences. I realised that to many people, spending time with their mother might mean letting her go hungry. That is when I decided that I was not going to tell the youth to come back because not everybody has what I have. What I am going to tell them is not to forget Nepal. The country has what it has and the economy is sustained because of money sent by the people who pour their sweat in foreign lands. Nepal is not just its land and its rivers, it is also its people, wherever they are.&nbsp; Read also:&nbsp; <a href="https://www.nepalitimes.com/banner/migration-not-a-wish-but-necessity-for-nepalis">Migration not a wish, but necessity for Nepalis</a>, Shristi Karki <a href="https://www.nepalitimes.com/here-now/making-overseas-migration-better">Making overseas migration better</a>, Kunda Dixit Are you going to stand in elections yourself, maybe from Bhirkot where your ancestors are from?&nbsp; Anil Shah: One should never say no when it comes to politics, because you never know. If the party needs me and tells me I must stand, why not? I will not back down and say no. But if I were to say right now I'm going to stand from Kathmandu or Bhirkot or Janakpur, then I would have to devote half of my time to developing my constituency. If I were to focus on that while also building the leadership within the RSP— which has been my dream— I will fail in both of those undertakings. Right now I am clear within the party that my job is not to win elections and be given a post, my job is to ensure results in all three levels of government in the next election.&nbsp; Should I go to Bhirkot, I am confident that I can develop it. But developing Bhirkot will not develop Nepal. I have embarked on a journey where I want to build the kind of leadership to develop all of Nepal. The interactions and energy from Kosi and Lumbini have been phenomenal so far. Additionally, there is sometimes a misconception that the RSP is a party of and for young people. That is not the case at all— we are a party of Nepalis where people of all ages, ethnicities, genders, and religions are welcome. The central leader in the RSP from Bhirkot is from the Muslim community and from my ward. There is already a leader there.&nbsp; A lot of Nepal’s ageing leadership is overly ambitious, egotistic and do not want to let go. Do you address that in your training? Absolutely. I call that god syndrome. This belief that rules do not apply to us because we are in politics. But whether it is traffic rules, or having to be in a queue, we impress upon the RSP leadership during training that we must follow them. &nbsp; Do you think Rabi Lamichhane has god syndrome? Everybody has an ego, including me. The question is if <a href="https://www.nepalitimes.com/here-now/after-balen-the-rabi-phenomenon">Rabi Lamichhane</a> can control it, and from my experience he can. Rabi Lamichhane is a brand now. He is looked at as the face of the RSP, as the tip of the spear of a lot of people’s aspirations. People could argue and comment on all of his speeches and public appearances, but he has to do that as the leader of a national party. There is a difference between being invisible and being humble. And whether it is in parliament or on the streets, he is humble but never invisible. He is a humble man—a god-fearing man—and he is someone I think I can follow as a leader. Read also: <a href="https://www.nepalitimes.com/banner/rabi-lamichhane-is-home-less">Rabi Lamichanne is Home-less</a>, Shristi Karki

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"We are a political startup"

<figure><img width="1400" height="1050" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811110/636a28a59c7e80680e045883jpeg.jpg" alt=""/><figcaption>Photo: SONIA AWALE</figcaption></figure>For someone who jet sets around the world, hobnobbing with governments and scientists to promote affordable and ecological toilets, Roshan Shrestha found out for himself just how difficult maintaining loos can be during a recent visit to his home in Nepal.The Seattle-based 55-year-old sanitation expert (pictured below) found that the septic tank at his family home below Swayambhu was overflowing. But he had no clue who to turn to, and <a href="https://www.nepalitimes.com/opinion/where-to-take-a-dump/" target="_blank" rel="noopener">how to get it emptied</a>. “I did not know where to go,” recalled Shrestha during a break at a Faecal Sludge Management Conference last week in Cape Town. “If it was so difficult for me, I can only imagine how hard it must be for the general public.”Read also: <a href="https://www.nepalitimes.com/banner/toilet-trained/" target="_blank" rel="noopener">Toilet trained</a>, Sonia Awale<a href="https://www.nepalitimes.com/opinion/where-to-take-a-dump/" target="_blank" rel="noopener">Where to take a dump</a>, Bhushan TuladharShrestha finally got in touch with a private service provider and got the problem fixed after a few days. With over 30 years of experience in improving sanitation, Shrestha was promoted last month as Deputy Director of the Urban Sanitation Markets at the <a href="https://www.gatesfoundation.org/" target="_blank" rel="noopener">Bill and Melinda Gates Foundation</a> (BMGF).Shrestha is a leading authority in the field, and involved in the BMGF’s <a href="https://www.gatesfoundation.org/What-We-Do/Global-Growth-and-Opportunity/Water-Sanitation-and-Hygiene/Reinvent-the-Toilet-Challenge-and-Expo" target="_blank" rel="noopener">Reinvent the Toilet Challenge</a> that has scientists around the world competing for the best design of a new generation of <a href="https://www.nepalitimes.com/banner/toilet-trained/" target="_blank" rel="noopener">toilets</a> that do not use water, are cheap to install and easy to operate.Shrestha has been recognised for promoting water and sanitation projects in Nepal with his new responsibility at the BMGF, a philanthropic arm of the founder of Microsoft.Says environmental expert Bhushan Tuladhar: “Roshan is passionate about sanitation, and does not treat it as just another job. He has great commitment and perseverance. His success is well deserved and it is only fitting that the foundation has recognised it.”Read also: <a href="https://www.nepalitimes.com/banner/getting-our-shit-together/" target="_blank" rel="noopener">Getting our shit together</a>, EditorialThe Gates Foundation’s Brian Abrogast said of Shrestha’s promotion: “Roshan Shrestha has been the best ambassador the foundation could ask for, exuding respect and compassion while generating admiration – and impressive results.”The BMGF’s toilet challenge has prompted top scientists from China, India and other parts of the world to come up with innovative new designs, from solar-powered smart toilets that generate hydrogen and electricity to sanitation systems that convert human waste into biological charcoal, fuel gas, minerals and clean water.Shrestha had humble beginnings in a public school in Kathmandu before getting an MSc from Tribhuvan University in 1988. He worked in a water analysis laboratory to test the water in the Bagmati River. And later founded <a href="http://enpho.org/" target="_blank" rel="noopener">Environment and Public Health Organisation</a> (ENPHO) that specialises in research and monitoring. Later, he got a PhD from a university in Austria in limnology, the study of inland water bodies. On his return, Shrestha successfully marketed the popular water purifier called Piyush.Shrestha went on to introduce Nepal’s first wetland system in Dhulikhel for small-scale wastewater treatment and reuse, and designed Nepal’s first faecal sludge treatment plant in Teku in 1998.“It was at this point that I realised that water quality would never improve without upgrading sanitation. At the root of water pollution is poorly managed sanitation,” said Shrestha, who then became involved in <a href="http://archive.nepalitimes.com/article/nation/dont-wait-for-melamchi-nepal,3765" target="_blank" rel="noopener">rainwater harvesting</a> and turned his residence into a model eco-home complete with urine diversion dry toilet.After a stint at UN HABITAT as a South Asia region technical adviser, he was convinced toilet technology had to be less water-intensive to improve sanitation in the developing countries. “We claim to have over 90% <a href="https://www.nepalitimes.com/banner/getting-our-shit-together/" target="_blank" rel="noopener">latrine coverage in Nepal</a> but most structures do not meet required standards, and that is why we need a new breakthrough in toilets,” said Shrestha.The Gates Foundation has invested heavily in developing new  technologies that can destroy pathogens on site through faecal sludge management.“If a vast country like India can clean up its act, why can’t Nepal? All we need is political will and proactive leadership committed to improving sanitation,” adds Shrestha, whose foundation is currently developing a new course on sanitation at Kathmandu University, and working with Nepal Bureau of Standards on a new <a href="http://archive.nepalitimes.com/news.php?id=15235#.XHfVCMAzaUk" target="_blank" rel="noopener">toilet</a> standard.Here in Cape Town at the global conference he helped put together,  Shrestha says his goal is still to go back to Nepal: “I plan to head home, but after we have developed an adaptable technology for safer sanitation in developing countries so we can promote it in Nepal as well.”

Sonia Awale

Toilet trained expert

<figure><img width="800" height="1101" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101128/636a216d9c7e80680e04173djpeg.jpg" alt=""/><figcaption>Cartoon: DIWAKAR CHETTRI</figcaption></figure>The ruling Nepal Communist Party, formed by the union of the former rebel Maoists and their erstwhile UML enemy, has squandered nine months of its five-year tenure.Prime Minister Oli has publicly blamed his own party for undermining the government. He said recently, “Our party’s leaders and cadre are silent when the government is being criticised.” That barb appeared to be aimed at his co-Chair and prime minister-in-waiting Pushpa Kamal Dahal and his former Maoist comrades, who neither support nor censure the government. It is as if Dahal is letting Oli sink his ship, patiently waiting for his turn at the helm in 2020. Analysts blame the NCP’s debacle largely on Prime Minister Oli for being out of touch with reality, and making wild and hollow promises. But the other reason is that the two constituent parties in the NCP still have not reconciled their widely different political cultures. Says a senior UML leader: “After the unification, we thought we could make the Maoists in our image. But we are now behaving like the Maoists used to.”Indeed, the NCP is now run by the two Chairs who rarely consult each other, or the rank and file. The UML’s tradition of close consultation among the senior leadership is gone, and its strong nationwide cadre network has not been replaced with a new party base.The NCP’s much-delayed Standing Committee meeting this week brought the UML-Maoist fissure into the open, with Oli facing much of the criticism.The meeting acknowledged the delay in truly uniting the two parties, and said it would take steps to correct that. The question is: will it narrow the distance between Capt Oli and his Co-pilot?

The ship of state

There were two Bhutans on display during Narendra Modi’s visit this month. The first: a trusted partner, modernising rapidly with Indian support, inaugurating hydroelectric projects, and signing healthcare deals. The second: a nation that <a href="https://www.fmreview.org/gazmere-bishwo/#:~:text=In%201990%2D91%2C%20about%20a,are%20therefore%20not%20Bhutanese%20citizens.">ethnically cleansed 17% of its population </a>and has never been held accountable.
Modi chose to see only the <a href="https://kuenselonline.com/news/pm-modi-concludes-bhutan-visit-with-prayers-for-peace-and-prosperity">first </a>during his <a href="https://economictimes.indiatimes.com/news/india/india-announces-rs-4000-cr-concessional-credit-line-to-fund-energy-projects-in-bhutan/articleshow/125253915.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">11-12 November visit</a>, granting $450 million in credit, offering birthday tributes to Fourth King Jigme Singye Wangchuk, and inaugurating another hydropower project.
New Delhi has opted for strategic silence on Bhutan’s systematic persecution of the Lhotshampas in the 1990s. The displaced remain scattered across the world and in refugee camps in Nepal, their property seized, their citizenship revoked.&nbsp;
Now, on that same contested land Bhutan is building the <a href="https://nepalitimes.com/here-now/small-bhutan-dreams-big">Gelephu Mindful City (GMC)</a>, a megaproject intended to <a href="https://kuenselonline.com/news/pm-modi-announces-inr-40-billion-credit-line-new-rail-links-and-land-for-bhutanese-temple-in-varanasi">connect directly to Indian infrastructure</a>. The victims are gone, and democratic India’s values remain conspicuously absent.&nbsp;
With no Lhotshampas left to challenge the official narrative and India unwilling to raise it, Bhutan continues to suppress dissent with impunity.&nbsp;
Earlier this year, social media influencer Raghu Pati Subedi was arrested on the Assam side of Gelephu after returning from a visit to relatives in India. His family members reportedly came under intense pressure, including threats of arrest, accusing them of hiding his whereabouts. After his arrest, he was transported to Thimphu and imprisoned.
This was not an isolated incident. It is part of systemic repression that first gained international attention in the 1990s, when over 100,000 Nepali-speaking Lhotshampa were systematically stripped of their citizenship and forcibly exiled. This mass expulsion, which human rights organisations have characterised as ethnic cleansing, created a decades-long refugee crisis that continues to define the regional political and human rights landscape.&nbsp;
EXODUS
The Lhotshampa crisis of the 1990s was not a spontaneous event but the culmination of years of state-led discrimination. Through a series of legislative acts, notably the 1985 Citizenship Act and the 1989 Driglam Namzha, the ‘One Nation, One People’ policy, the Bhutanese state systematically dismantled the rights of its Nepali-speaking citizens.&nbsp;
The use of the Nepali language was suppressed, the traditional dress of the ruling ethnic group was mandated, and citizenship was revoked en masse, rendering a significant portion of the population stateless in their own homeland.
The new manuscript I am editing has harrowing accounts by the authors of those atrocities. The parallels with what happened to Subedi recently are striking and troubling, showing that even after 35 years the regime has not changed its spots. The methods may have evolved, but the repression against dissidents remains disturbingly consistent.
This refugee exodus was an immense and unasked-for burden on Nepal. Despite being a country grappling with its own political instability and limited resources, Nepal accommodated them on humanitarian grounds. Nepal has consistently advocated for a durable solution centered on the refugees’ right to safe, voluntary, and dignified repatriation.
For years, it engaged in bilateral talks with Bhutan, culminating in a joint verification process. However, these efforts ultimately foundered on what Nepal described as ‘continued rigidity and non-implementation of the agreed decisions by the Bhutanese side’.
Nepal fulfilled its moral and humanitarian duty, but the international community largely failed to hold Bhutan accountable. Bhutan’s rulers deflected global attention with the masterful narrative of Gross National Happiness (GNH), while the grim reality in the refugee camps persisted.&nbsp;
Ultimately, with repatriation proving impossible, Nepal acquiesced to a third-country resettlement program led by a group of eight countries, including the United States, Canada, and Australia. From 2007 to 2016, more than 113,500 Bhutanese refugees were resettled in <a href="https://www.unhcr.org/media/nepal-factsheet">one of the largest group resettlement programmes globally</a>, though 6,365 remain in refugee camps in eastern Nepal.
While this solution provided a lifeline for thousands, it was a tragic capitulation to Bhutan’s ethnic homogenisation project. The refugees’ right to return to their homeland has been denied. It is a cautionary tale about the limits of international diplomacy in the face of state intransigence.
Bhutan’s global brand is one of its most successful exports. The <a href="https://www.gnhcentrebhutan.org/">Gross National Happiness </a>doctrine, which promotes holistic well-being over just economic growth, has captivated the Western imagination and policymakers. It offers a vision of a mindful, environmentally conscious, and peaceful Himalayan kingdom. This carefully cultivated image has historically aimed to shield Bhutan from the level of scrutiny applied to other nations with similar human rights records.
The GNH facade, however, cracks under the weight of documented evidence. The same kingdom that champions ‘happiness’ has, for decades, maintained a justice system that human rights groups allege relies on torture, coerced confessions, and draconian laws to silence opposition.
The 1992 National Security Act, with its vague definitions of ‘treasonable acts’ against the Tsa-Wa-Sum (King, Country, and People), has been a primary tool for suppressing political dissent, particularly from the Lhotshampa.
Overlooked by the international community and ignored by global powers including India, in responding robustly to the ethnic cleansing of the 1990s sent a clear message to Thimphu: such actions could be undertaken with impunity. The monarchy emerged unscathed, its reputation burnished rather than tarnished.&nbsp;
This historical impunity now echoes in the case of Raghu Pati Subedi and the <a href="https://www.cijnepal.org/new-list-of-political-prisoners-expected-to-set-off-discussion-on-bhutans-human-rights-record">continued imprisonment of dozens of political prisoners</a> of conscience. The global community’s reluctance to challenge the GNH narrative has, in effect, become a form of complicity.
The arrest and sentencing of a social media influencer demonstrates how old tactics have been adapted for the digital age. Subedi, 40, was a new kind of threat to the state-controlled narrative and he had to be made an example of.&nbsp;
As the founder and administrator of the popular Facebook page ‘The Don of Asia’, he bypassed traditional, state-influenced media to speak directly to about 78,000 followers. His content, informational and satirical videos on rural poverty, corruption, and the GMC project, was the kind of social media activism that was deemed intolerable.
Subedi was arrested in early 2025 and sentenced to 24 years in prison. The charges allegedly stemmed from Subedi’s social media criticism of the GMC, a flagship project of Nepal-born Bhutanese fifth King Jigme Khesar Namgyel Wangchuck.&nbsp;
For <a href="https://thenewamericansmag.com/2024/11/18/the-kings-gelephu-mindfulness-city/#:~:text=Ganga%20Lamitare%2C%20who%20owns%20four,ancestors%20in%20building%20the%20nation.">Bhutanese refugees like Gangaram Lamitare</a>, the GMC represents a bitter irony, a development rising on their confiscated ancestral lands.&nbsp;
Gangaram, who owns four acres where the GMC’s international airport is now under construction, says: “Many people from villages fled at night in 1990, leaving everything behind to escape oppression. Now, the Bhutanese king and ministers are spreading falsehoods worldwide, calling this land vacant, which actually belongs to those forced to leave the country.”&nbsp;
There are signs that international support that has benefited Bhutan may be waning. The United Nations has become increasingly vocal and last year the <a href="https://www.ohchr.org/sites/default/files/documents/issues/detention-wg/opinions/session101/a-hrc-wgad-60-2024-bhutan-advance-edited-ve.pdf">UN Working Group on Arbitrary Detention</a> said the detention of several Bhutanese political prisoners was arbitrary and illegal under international law.&nbsp;
In April 2025 from a group of six UN human rights experts raised grave concerns about the use of torture, denial of fair trials, and the ‘severe chilling effect’ of Bhutan’s legal framework on civic space. These developments owe much to the consistent advocacy of the Hague-based Global Campaign for the Release of Political Prisoners in Bhutan (GCRPPB) since its formation.
However, they also reflect broader shifts in international human rights scrutiny. This places Bhutan’s key international partners, particularly the European Union, in a critical position. Bhutan enjoys lucrative benefits under the EU’s ‘Everything but Arms’ trade scheme, which grants developing countries tariff-free access to the EU market contingent on respect for human rights.&nbsp;
The EU is also a significant provider of development aid to Bhutan which provides it with substantial leverage. In April 2025, members of the <a href="https://bsky.app/profile/saskiabricmont.bsky.social/post/3lmrn5mkmrs2q">European Parliament formally called on Bhutan</a> to release all political prisoners. This action signals a growing recognition that trade and partnership cannot be divorced from human rights obligations.&nbsp;
“Bhutan’s international partners and investors, including the EU, should make it clear that they expect Bhutan to comply with its human rights obligations and release them without further delay,” says Meenakshi Ganguly, of Human Rights Watch.&nbsp;
Bhutan stands at a crossroads. Its desire for deeper global economic integration is colliding with its unresolved history of human rights abuses. The international community now has a choice: either continue being charmed by the myth of a happy shangri-la or insist that the kingdom adheres to democratic values it professes to the world.&nbsp;
Nepal’s recent Gen-Z uprising offers a lesson to Bhutan. In September, when authorities attempted to ban 26 social media, Nepali youth took to the streets and, within hours, toppled the entire pro-establishment political apparatus. Their message was clear: in an age of digital connectivity and mass mobilisation, authoritarian tactics such as detaining social media influencers are both unjust and ultimately unsustainable.
This incident echoes the prophetic warnings of Devi Bhakta Lamitare, Bhutan’s first-generation democratic leader, who died in exile in India in 2022. In his seminal 1970 book
Dankindo Bhutan, Lamitare chronicled the systematic suppression of people’s rights and envisioned a path toward liberation.
Before his death, I worked with him to update and edit this work, which the Bhutan Media Society published posthumously in 2023. In a December 2020 interview I conducted for the book on the Ganga riverbank in Haridwar, Lamitare laid out a stark three-front offensive: political mobilisation from within India to awaken resistance inside Bhutan itself, relentless pressure on New Delhi to champion democracy, and a global ‘pamphlet war’ waged by resettled Bhutanese in the West.&nbsp;
Only through such sustained action, he argues, can Bhutanese citizens win the right to choose their own rulers, a principle India, the world’s largest democracy, should be championing, not abandoning.
Binod Dhungel is the Nepal correspondent for Reporters Without Borders.
<a href="http://linkedin.com/in/dhungelbinod" target="_blank">linkedin.com/in/dhungelbinod</a>, @BinodDhungel

Bhutan imprisons social media influencer

The COP30 climate summit in Brazil ended this week <a href="https://nepalitimes.com/opinion/cop30-to-cop31">without tangible commitment</a> from countries to reduce fossil fuel emissions. Its impact will be felt halfway around the planet here in Mustang which is already seeing weather extremes.&nbsp; Geographically, Mustang is on the Tibetan Plateau, north of the main Himalayan chain. It is in the rainshadow, and a high altitude desert. Winter snow has failed for eight of the past ten years, unseasonal blizzards, and frequent glacial collapse leading to floods. The Kali Gandaki Corridor follows one of the deepest gorges in the world between Annapurna and Dhaulagiri, the world’s seventh and tenth highest peaks. Lush pine forests cover the southern flanks of these mountains, but within a few kilometers the vegetation undergoes a dramatic change to a landscape of red, brown and grey cliffs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f.jpg" data-media-id="editor_1" data-image-id="20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It gets more arid the more north you go. Snow and rain in Upper Mustang used to fall mostly in winter, but now there are cloudbursts and blizzards at other times of the year.&nbsp; In the ancient walled city of Lo Manthang, elderly men have gathered at a local tea shop to drink the salted butter tea. Some sip home-made liquor infused with medicinal herbs.&nbsp; The sun has set, the temperature plummets, and the wind howls outside. Everyone agrees it does not snow like it used to any more. Read also: <a href="https://nepalitimes.com/here-now/comings-and-goings-in-mustang">Comings and goings in Mustang</a>, Shrijan Pandey  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161.jpg" data-media-id="editor_3" data-image-id="20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The flat mud roofs are leaking because rain is now falling where there used to be snow.</figcaption> </figure>  “The weather has changed drastically over the years,” says Lopsang Tsomfel Bista, Chair of the Lo Dekhar Municipality. “It doesn’t snow in winter, and it falls when it is not supposed to.”&nbsp; Lack of snow means that in spring, the pastures where nomadic herders graze their yaks and goats do not have enough grass. Previously, winter snow on the meadows would seep slowly into the soil with the spring thaw, bringing out fresh grass shoots. &nbsp; In recent years, even if there is winter precipitation, it falls as rain. The soil is not able to soak in rain as efficiently, and torrential downpours increase the risk of soil erosion and floods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1.jpg" data-media-id="editor_4" data-image-id="20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  “There used to be up to 1,500 mountain goats in every village, but now they have stopped keeping livestock,” says Bista. This is due to lack of grass and new lowland diseases moving up the mountains. Mustang has lost 28% of its population between the census in 2011 and 2021, and outmigration also means there are fewer people left to carry on a pastoral lifestyle.&nbsp; “Herders have asked for vet services in their communities because there are new insect-borne diseases,” says Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation. Read also: <a href="https://nepalitimes.com/opinion/winds-of-change-sweep-mustang">Winds of change sweep Mustang</a>, Jagannath Adhikari  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26.jpg" data-media-id="editor_6" data-image-id="20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The mud walls of monasteries and homes are crumbling because of unseasonal rainfall. </figcaption> </figure>  Mustang is flanked to the east and west by mountains that rise up to 6,000m, and glaciers on their slopes are melting fast, turning into lakes. With the rising temperature, the risk of Glacier Lakes Outburst Floods (GLOFs) has also risen.&nbsp; At the rate global average temperatures are rising, scientists say that the Himalaya will lose up to two-thirds of the remaining ice caps. When glaciers melt, it not just raises the risk from GLOFs but also affects water supply downstream.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f.jpg" data-media-id="editor_7" data-image-id="2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f" data-rendition-name="original" width="1022" height="767" loading="lazy" alt="Mustang map NT"> </figure>  FLOODS Ringzin Sangbo Gurung in Chumjung village recalls the devastation caused by a GLOF on 8 July this year that swept away a newly inaugurated bridge. The floodplain is now strewn with boulders and sand brought down by the flood which caused damage worth Rs28 million. The flood also damaged the irrigation canals that feed riverside farms where locals grew potato, buckwheat, millet and spinach. Nyima Wangmo Gurung runs a homestay in Nyamdok village, and says: “We don’t have water when we need it. And there is too much when we don’t need it.”&nbsp; Read Also: <a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">Mustang forced to adapt to climate c</a><a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">risis</a>, Ronan Wallace and Yungdrung Tsewang Gurung  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2.jpg" data-media-id="editor_10" data-image-id="20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  With warming temperatures, farmers in Mustang are growing lowland vegetables which was not possible before in plastic greenhouses. The farms depended on snowmelt in spring to irrigate their fields, but there is less snow to melt in past years. “The last heavy snowfall in winter was about eight years ago, since then we have got little or no snow,” says Tashi Norbu Gurung, Chair of Lo Manthang Rural Municipality. “This affects farmers during the April planting season.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b.jpg" data-media-id="editor_11" data-image-id="20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b" data-rendition-name="original" width="1000" height="1500" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It is not just lack of snowfall that is a problem. Springs have gone dry, and some villages like Dhey have been forced to relocate because life became &nbsp;impossible without water.&nbsp; Villagers of Samjung also <a href="https://nepalitimes.com/news/climate-migration-is-already-happening">migrated</a> to Namashung, near a river when water sources dried up. But now the new settlements are threatened by GLOFs. Karma Gurung, who runs a lodge in Choser, remembers the big flood of 35 years ago which swept away farms and covered them with debris. There have been more frequent, but destructive floods since then in Kagbeni, Lubra and other valleys. Read also: <a href="https://www.nepalitimes.com/banner/mixed-blessings-in-mustang">Mixed blessings in Mustang</a>, Mukesh Pokhrel  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd.jpg" data-media-id="editor_14" data-image-id="20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  MUD WALLS Because snowfall has been replaced by rain, Mustang’s traditional mud-wall architecture is now in <a href="https://nepalitimes.com/here-now/leaky-roofs-on-the-roof-of-the-world">danger of collapsing</a>. The homes here are closely packed, have flat roofs stacked with juniper branches for firewood. With rain in place of snow, the roofs now leak.&nbsp; Women in Thinkar village say their walls are falling apart. Some homes have collapsed, and families forced to move out. Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation says locals need plastic sheets, cement walls and corrugated roofs to cope with the rain.&nbsp; But this would mean that Mustang’s villages would lose their traditional architecture style.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d.jpg" data-media-id="editor_16" data-image-id="20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The ancient 1.5m thick mud walls around Lo Manthang built 600 years ago, the king’s palace, and monasteries are also at risk. “Changes in precipitation patterns, altering the intensity, frequency, and timing of rainfall and snowfall, have damaged traditional and cultural infrastructure, particularly mud-built private and public buildings as well as religious and heritage sites,” explains Bhawani Pandey at the Lo Gyalpo Jigme Foundation. “With the rain, and because the monuments and stupas are made from mud, they have eroded. There is leakage, and the monuments are in a dilapidated condition.” Read also: <a href="https://www.nepalitimes.com/banner/climate-smarter-himalayan-infrastructure/" target="_blank">Climate-smarter Himalayan infrastructure</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6.jpg" data-media-id="editor_18" data-image-id="20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The Lo Manthang Rural Municipality along with Lo Gyalpo Jigme Foundation, are working on a Local Adaptation Plan of Action and the Disaster Preparedness and Response Plan, which the Nepal government has made mandatory for every municipality. “We took a bottom-up approach and collected data from each village, they know best the impact of climate change and what their needs are,” says Yangchen Gurung. To address the hazards of climate change, local communities and municipalities are adapting through their own resources, without waiting for outside help to improve water conservation, control soil erosion and protect from flood.&nbsp; Says Pandey, “We are returning to conserving traditional drought-resistant crop varieties, organic pest and disease control, cultivating high-value crops and fruits, and practicing sustainable pasture management through rotational grazing. We have also developed new building codes for homes that incorporate water-resistant coating for mud roofs and walls.” &nbsp; Additional Reporting by Tashi Wangyal. &nbsp;

Too little snow, too much rain

We often see ourselves reflected in the other. For someone who grew up in Kathmandu Valley in the eighties and nineties, this maxim comes alive with an even greater force. Nepal’s media ecosystem was dismal, the school curriculum was narrow and did not provide opportunities for creative expression. Perhaps that is why I became obsessed with MTV videos and Bollywood films. I saw my developing self reflected in these story-lines and razzmatazz. When the media and education system do not engage the public and reflect myriad interests, aspirations and lifestyles of the population, citizens get detached and disconnected from their roots. I left for America for further studies, and was somewhat determined to never return to Nepal. It was a country full of potholes and black-outs. But foreigners have been fascinated with our country for decades. In the early 19th century, Francis Buchanan-Hamilton led a pioneering expedition and documented more than a thousand species of plants native to the region. Almost a century later, in 1905, Frenchman Sylvan Levi published ‘the first attempt to produce a comprehensive study of Nepal’, drawing on not just indigenous but available Chinese and European sources as well. After Nepal opened up in the 1950s, different kinds of foreigners have traveled here -- most notably, cold-war era spies disguised as diplomats, and later came the hippies. I returned to Nepal in 2013 and was primarily struck by two major demographics - the artists and the expats. Energised by the recent revolution, the creatives were making vibrant, powerful works. The expats, on the other hand, demonstrated a different way to navigate life in Kathmandu Valley. These two groups of people re-introduced Nepal to me and I began seeing my country and my hometown with a renewed perspective. Which is why one particular image from Giovanna Caruso’s ongoing show at the <a href="https://www.instagram.com/thekalasalon/?hl=en" target="_blank">Kalā</a><a href="https://www.instagram.com/thekalasalon/?hl=en" target="_blank"> Salon</a> curated by <a href="https://nepalitimes.com/review/facades-and-flowers-from-nepal-to-italy" target="_blank">Sophia L Pandé</a> instantly caught my attention -- rather, it called out to me, as if it was composed for me, framing a key moment from my own life. Its title is, coincidentally, 2013. Like most of her other works, the pen-and-ink drawing is punctuated by an explosion of watercolour: a woman standing confidently in front of a Newa-style house, a leg arched up, as if she is fixing a strap around an ankle before stepping out on an adventure. The watercolour depicts a rainbow streaming out of a pot through a second-floor window. The rest of the details are rendered in realism – clusters of garlic and onion hanging to dry from the rafters, and further down a stack of corn. There are towels drying, even an old water pump.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251201121216_f440de5b5402fe0877dc46d94f41647bd46b00035b61241d46fc9f7ffbd87d0f.jpg" data-media-id="editor_3" data-image-id="20251201121216_f440de5b5402fe0877dc46d94f41647bd46b00035b61241d46fc9f7ffbd87d0f" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="art review Kala Salon"> </figure>  When I walked over to this artwork with Caruso, she chuckled, “Ah, this work is a celebration of my 30 years in Nepal.” It was while trying to calm a restless group of students during her teaching days in Italy that Caruso first came across an iconic image of Kathmandu Darbar Square. She had found an old box of slides and while projecting images from the Himalaya to engage her students, the artist was determined to travel to Nepal. The first flat she rented was close to the square and the view from her rooftop was the same as the one she had encountered inside her classroom. She has been traveling to Nepal every year since. Some of her favourite drawings depict Khokana in morning fog. From 1993-2006, she drew murals at Ram Mandir and Pashupatinath, asking sadhus to guide her and correct her depictions. Caruso received a classical education, which means she was trained to focus on perspective and geometry while capturing mainly portraits and still lives. She is influenced by M C Escher and his explorations of mathematics and symmetry. No wonder she finds the Darbar Square architecture so compelling. She also names as inspiration Gustave Dore, whose style is different from Escher’s and I can see how she has fused these influences in her body of work: Escher’s austerity complimented and slightly dislodged by Dore’s comics and caricatures. “Before starting, the painting needs to be complete in my mind,” she explains as we pass a series of portraits titled Saraswati, Lakshmi, Kali Dancing, and Durga dominated by a roaring tiger. “These are all real people, I ask my friends and family members to sit for me.” The Kali in the drawing has the artist’s fiery copper red hair and she is dancing, surrounded by various men with flowing hair. The artist seems to have experimented here, drawing the revelers from above, and indulging in playful abandon. Depictions of Nepal are often in danger of being exoticised. But Caruso is familiar with her subjects, knows our alleys and temples intimately. Her colours and compositions are passionate and dense. In an essay, Anirudh S Chari writes the artist’s work is splashed with rapturous energy and most drawings have a carnivalesque element. ‘Kali Dancing’ illustrates this idea perfectly in that she has turned Kali’s usual fearsome portrayal on its head by depicting and embracing another feminine principle - the capacity to celebrate and create joy. Apart from drawing inspiration from Hindu goddesses and Nepal’s multi-colored rituals, Caruso has also drawn the Sumerian Ianna and Lillith and the Egyptian Nut. She enjoys drawing Nataraja, and says it is because “Shiva is a good husband”. We stand another painting titled 100 Days a Lion. “There is a saying in Italian, Better one day as a lion than a hundred days as a sheep, but I thought why not 100 Days a Lion?” This sentiment captures this nomadic artist’s spirit spanning four decades, in which she has captured urban energy as well as the sacred imagery of ‘life diaries on canvas’. From Venezia to Kathmandu and Journeys In Between Giovanna Caruso The Kalā Salon Chhaya Centre Mall, Thamel Till 12 December 10am- 8pm

Looking at Nepal from Venice

The September protests and worry about what is in store for Nepal in 2026 have added more uncertainty to a <a href="https://nepalitimes.com/here-now/nepal-needs-to-use-its-money-better">struggling economy</a>. Real estate transactions are stagnant, industries are operating below capacity because of declining domestic demand, the construction sector is slack, and investors are in wait-and-watch mode. In contrast, total bank deposits increased by Rs124 billion in the month before mid-October to Rs7.4 trillion. Official remittance inflows hit a record $13 billion in the past year. Nepal’s banks are flush with cash, with nowhere to put it. &nbsp; “The economy has flatlined. Non-performing assets are up, and real estate is at a standstill,” said Ashoke SJB Rana, CEO of Himalayan Bank.“There is excess liquidity in the market, with not many places to invest.” The main reason seems to be that both <a href="https://nepalitimes.com/here-now/relocate-reallocate-recover">domestic and foreign investors were spooked</a> by the targeted violence of 9 September, and are so worried about the runup to elections in March that they are holding on to their wallets. Not just businesses, the political uncertainty is keeping individuals &nbsp;from making big financial decisions.&nbsp; Sujeev Shakya, author of the <a href="https://nepalitimes.com/review/retrofitting-nepal-for-future-shocks">newly-released book Nepal 2043</a>, notes that the current doldrum is due to Nepalis playing it safe with their money. &nbsp; “People are holding on to their assets, and keeping their cash,” he says. “They are not investing in real estate, and avoiding buying gold because it is so volatile.”&nbsp; One sector in which banks have a lot of exposure is hydroelectricity, but even here recent floods have shown that this investment is <a href="https://nepalitimes.com/here-now/global-warning-bell-in-belem">increasingly at risk from climate breakdown</a>.&nbsp; Nabil Bank, with its focus on sustainable banking, for instance, has financed 56 hydropower projects with an installed capacity of 3,000MW.&nbsp; Says Nabil CEO Manoj Kumar Gyawali: “We cannot ignore unpredictable rainfall, increased glacier melt, more frequent glacier lake outburst floods, and landslides. These risks mean that while hydropower is essential, Nepal must diversify its energy mix." &nbsp;&nbsp; An open secret in the banking sector is that much of the liquidity is supected laundered money. Banks also have close ownership links with big businesses, and this means that even with a slow economy, banks lend to themselves or to each other to keep transaction volumes up.&nbsp; This is one reason for a high default rate. In the first three months of this fiscal year, 4.86% of bank loans were non-performing, meaning one out of about every 20 borrowers had defaulted. A year ago, this figure was 4.04%. Banks are therefore reluctant to lend, dampening the overall investment climate. &nbsp; Ironically, the high default rate is keeping mainstream newspapers in Nepal afloat at a time when the media business is also in crisis. Even as they suffer from a massive drop in advertising revenue, most daily newspapers often add pages to fit notices to borrowers about repayment, or announcements of bank auctions of collateral property. “While banks may be making a much smaller percentage of income compared to a few decades ago, they are still making a profit,” notes Shakya. “And so they are actually quite happy to be in this low-risk situation. Banks are conservative organisations after all.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065.jpg" data-media-id="editor_4" data-image-id="20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065" data-rendition-name="original" width="1500" height="1022" loading="lazy" alt="Banks"> <figcaption>Illustration: BHANU BHATTARAI / NEPALI TIMES ARCHIVE</figcaption> </figure>  Among the most striking videos of the September protests that was shared globally by tens of millions of people was the Hilton and Hyatt hotels and the Ncell building burning. That recognisable international brands were targeted did not just cause huge losses to owners, but also damaged Nepal’s overall investment climate. Looting Bhat-Bhateni and homes of businessmen also sent a negative message, spurring capital flight.&nbsp; “That was very bad optics for potential investors, you simply worry about the security of your investment when you see things like that,” says Himalayan Bank CEO Ashoke SJB Rana.&nbsp; Nepal will graduate to Middle Income Country status next year, and donors are set to move from aid to private investment. While this could reduce misuse of money, it could dry up grants and soft loans to the health and education sectors.&nbsp; But the harm may go deeper than just the aftermath of the September events. The recent<a href="https://nepalitimes.com/news/double-trouble-with-taxes"> double taxation issue</a> involving the Dolma Impact Fund, and an earlier controversy over Ncell’s capital gains tax have also put Nepal’s business climate in negative spotlight internationally.&nbsp; The banking sector is firmly on the side of investors. Says Ashoke Rana at Himalayan Bank: “This is a tax regime, it is absurd to order the payment of these taxes retrospectively. When investors see that the rules of the game can change arbitrarily, they won’t really want to put their money here. ” &nbsp; One of the positive changes in the ways Nepalis are using money is digital transactions through QR codes and mobile banking. With smartphones making up 70% of all mobile phones, QR transactions are easy and have become a part of daily life. ONLINE BANKING&nbsp; Most businesses and ride shares have this feature on board, and people do not need to carry a lot of cash or multiple bank cards. But as digital payments become the norm, the days of free transactions may be coming to an end.&nbsp; “Right now these transactions are free for the most part. This is a subsidy by the banks, because of course, it does cost something to make sure the payments go through,” says Rana at Himalayan Bank. “However, as income decreases, banks may have to look for ways to make money, so they may charge small percentages on each QR transaction.”&nbsp; Rapid digitisation has changed not only how customers use money, but also how banks think about their offices. Himalayan Bank’s new Thamel branch, for example, has cancelled plans to redesign the office for 20 tellers.&nbsp; “We realised that people were able to do so much of what they wanted digitally that we plan to have only four tellers,” says Rana.&nbsp; But cutting down on facilities and staff has not always made for a better customer experience at some bank branches.&nbsp; Economist Sujeev Shakya conducts ghost customer experience checks for banks which involves decoys entering banks to evaluate what it is like for somebody to set up a bank account.&nbsp; The stealth missions found that standards of service have regressed, with banks having a working environment reminiscent of government offices.&nbsp; Shakya points out that the general experience of going to the bank should be much better. “Sometimes it’s a knowledge issue -- banks may try to ask for non-disclosure contracts even when they don’t know why they want them,” he says.&nbsp; Despite digitisation, many banks still require paper-based forms and documents. Bankers and customers alike note that it feels archaic, almost absurd, to have to carry multiple copies of documents, sometimes only in Nepali lokta paper, across several family members and fill out what seems to be the same form over and over even though digital files exist. That could soon be changing as well. As more and more Nepalis adopt the National ID, banks have adopted pilot programs that use it to create bank accounts, replacing the myriad documents that customers had to previously present to officials, making all banking transactions more efficient and less of a hassle for the customer.&nbsp; DIGITAL SECURITY As Nepalis move their cash online, digital infrastructure needs to become more secure as well.&nbsp; Bankers spend quite a lot to make sure necessary digital security infrastructure is in place, but some banks could be using pirated software which are not trustworthy.&nbsp; There has to be better regulatory oversight to prevent phishing and fraud as online payments and digital banking spread across Nepal.&nbsp; Banks must also be innovative and ambitious. Says Shakya: “Nowhere else in South Asia are bank loans such a high ratio of the nation’s GDP. &nbsp;This actually points to a well-developed financial system and we have to take advantage of it."&nbsp; Shakya also notes that many bank executives in foreign countries, like Myanmar are actually Nepali, and that banks from Nepal could use their staff and know-how to partner with or acquire banks overseas.&nbsp; While these innovations are all welcome, it is unclear how Nepal's banking sector can jumpstart economic activity in the country. Nepal’s political future looks uncertain and stability is not a guarantee.&nbsp; In the face of continuing progress in hydro electricity and the IT sector seems to be the way forward to stimulate the economy.&nbsp; The GenZ movement was a wakeup call also to financial institutions and the need for greater transparency. Nabil Bank CEO Manoj Kumar Gyawali says the September protests sent a clear message that young Nepalis want an end to corruption, good governance, and real opportunities at home: "The banking sector has a &nbsp;responsibility to direct more lending toward the real economy, sectors that create jobs, build productivity, and strengthen long-term growth," he says.&nbsp; Despite a subdued investment climate, Gyawali is optimistic. "I do see early signs of improvement. Lower interest rates are beginning to restore public and business confidence. Rising remittances provide a safety net and fresh investment capacity for households," he says. "If government capital expenditure continues to improve, it will boost private sector activity."&nbsp;