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;

Vishad Raj Onta

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

thumbnail

viewImage

Cash rich, but poor

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141148/636d01229c7e80680e0a3614jpeg.jpg" alt="" width="1050" height="637"/><figcaption></figcaption></figure>Nepal Rashtra Bank’s (NRB) tightness on share collateral, signs of a lack of liquidity and the opening up of other investment avenues post-lockdown are some of the factors behind the share market’s sharp decline of late.On Sunday, <a href="http://www.nepalstock.com/" target="_blank" rel="noopener noreferrer">Nepal Stock Exchange (Nepse)</a> recorded the highest-ever fall in its history after the market dropped by 5.03% in just the first two hours of trading. A 40-minute long circuit break was imposed, as 60 companies saw their share values decline by 10%, and the Nepse index to 2782.52 points.A slight recovery was soon posted, but Nepse still fell by 3.7% from the previous day, losing 108.26 points from 2928.8 points to an end-of-day total of 2811.16 points. By day’s end, 31 companies lost up to 10% value on their shares.Despite the fall in the index, there were as many if not more people trading shares and the volume of transactions were unaffected, with 23 million 79 thousand shares of 223 companies clocking in Rs11.24 billion in turnover.The current dip in the share market is in sharp contrast to the <a href="https://www.nepalitimes.com/latest/despite-politics-nepals-stock-market-is-bullish/" target="_blank" rel="noopener noreferrer">boom during the lockdowns and prohibitory orders</a> when other investment sectors remained shut, allowing big and small investors to trade from home with the online trading system flourishing unabated.Bank interest rates also fell as the investment sector shrunk during the closures. As demand for credit in other sectors began to decline, banks also increased their investments in equity securities. As a result, the stock market traded at a record high with a turnover of Rs19.55 billion and Rs21.64 billion on 14 May and 15 July respectively.However, since then with the reopening of other sectors, the demand for bank loans has increased. There are indications that the lack of investment capital will be repeated. As such, banks are preparing to raise interest rates.The share market’s decline has been particularly concerning over the last week, falling from 3044 points to 2817 in five days. This has resulted in a loss of Rs1.5 trillion, down to Rs39.44 trillion on Sunday from last week’s Rs40.89 trillion.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141148/636d01249c7e80680e0a3615jpeg.jpg" alt="" width="623" height="351"><figcaption></figcaption></figure>Sunday’s fallout also prompted the Capital Market Reform Struggle Committee, led by investor Ram Krishna Dhakal, to demand the resignation of NRB governor Maha Prasad Adhikari for activities that have negatively influenced the share market.The committee has put forward 15-point demands including the limit of Rs120 million on margin loans brought by the central bank through monitory policy to be scrapped, the cap on dividends distributed by microfinance companies to be removed and the provisioning be modified.As per the NRB’s new stricter monetary policy, banks and financial institutions are allowed to give a maximum loan of Rs40 million to an individual or institution on the security of shares. Similarly, an investor can take a loan of only Rs120 million by pledging shares.Read also: <a href="https://www.nepalitimes.com/latest/instability-to-cost-nepal-dear-in-2021/" target="_blank" rel="noopener noreferrer">Instability to cost Nepal dear in 2021</a>, Ramesh KumarThe NRB didn’t only tighten its monetary policy, but all subordinate banks were also placed under strict restrictions, effectively banning them from share trading.To be clear, the NRB’s austere policies have caused the market correction by dislodging the confidence of large and institutionalised share traders, says share market analyst Mukti Aryal.The <a href="https://www.nepalitimes.com/here-now/insider-trading-taints-nepal-capital-market/" target="_blank" rel="noopener noreferrer">Sarbottam Cement share scandal</a>, in which Nepal Securities Board Chairperson Bhishma Raj Dhungana and Nepse CEO Chandra Singh Saud engaged in insider trading on IPOs, had recently dented confidence in the fledgling stock market.But the only way forward is for the NRB to examine its restrictive policies, adds Aryal: “The tightening of stock pledges is the chief reason for the market’s decline. Pledging one’s own assets as securities for trading should not be restricted.”However, instead of agitating against the regulatory bodies, investors themselves must adopt careful share-trading practices, says a share broker, adding that it is natural for the market to fall after being propped up by companies that very recently had bad portfolios.“If investors had invested in companies with solid portfolios, none of this would be happening,” he says. “Instead of investing smartly in profitable companies, investors hedged their bets on hydropower projects, development banks and finance, following the market rumours rather than prudent investment.”Translated by Kaustubh Dhital from the <a href="https://www.himalkhabar.com/news/125732?fbclid=IwAR1n22ltLRWRA6Yi8Lg23aGzl8ZLzgKvIlBx_UTy1R_3m9GZlgogZ9Y4F80" target="_blank" rel="noopener noreferrer">Nepali language original</a> in Himal Khabar.

Inside Nepal’s biggest stock market tumble

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141112/636ba76b9c7e80680e073781jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo: AJAYA UPADHAYAYA</figcaption></figure>As serious as the rapid spread in Nepal of the novel coronavirus looks, even more frightening is what the lockdown meant to prevent it will do to the <a href="https://www.nepalitimes.com/here-now/nepals-economy-already-weak-takes-direct-hit/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-economy-already-weak-takes-direct-hit/&amp;source=gmail&amp;ust=1598352647267000&amp;usg=AFQjCNHMB3uRxLtXPB1J9V0PQdJF-f6E6w">country’s economy</a>. The health impact of the virus may pale in comparison to <a href="https://www.nepalitimes.com/latest/nepal-plans-to-revive-economy-hit-by-covid-19/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-plans-to-revive-economy-hit-by-covid-19/&amp;source=gmail&amp;ust=1598352647267000&amp;usg=AFQjCNHZ73Q3ug57-h3IKB7NUBfuqD8LyQ">long-term damage</a> to the country from a prolonged lockdown that enters its sixth month today.It is difficult to make predictions on how Nepal’s economy will fare till the end of the year because that will depend on how the virus behaves. But all indications are of that SARS-CoV-2 is here to stay, and that it will resurface with added virulence in winter.On 21 July when Finance Minister Yubaraj Khatiwada triumphantly announced that the pandemic in Nepal had peaked, and the <a href="https://www.nepalitimes.com/latest/nepal-ends-covid-19-lockdown/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-ends-covid-19-lockdown/&amp;source=gmail&amp;ust=1598352647268000&amp;usg=AFQjCNEfmOWpPyfs0PHIzdD4yHmecUC6hg">lockdown had been lifted</a>, traders, businesses and industries were cautiously optimistic. But since then there has been a surge, with cases and fatalities more than doubling in the past three weeks.Aside from essential food and other items, business transactions are down by more than half since 24 March when the restrictions were first announced. Even when the lockdown was eased last month, the people’s purchasing capacity had gone down and businesses did not really pick up.The Rastra Bank estimates that it will take at least nine months after the lockdown is fully lifted for the economy to come back to previous levels. This means Nepal is not going to see a recovery this fiscal year. The central bank says 22.5% of those employed in the country have lost their jobs in the past five months of lockdown.The central bank expects Nepal’s economic growth rate to plunge from 6.9% last year to less than 1% this year. But the World Bank is even more pessimistic, it says the growth rate may even go into negative 2.8% if the crisis continues.“Everything is at a complete standstill, there are no transactions taking place except people buying food from day to day,” says Shekhar Golchha of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI). “The question is how long before businesses run out of cash to pay salaries, and families run out of savings.”Factories along the Itahari-Biratnagar and Simara-Birganj corridors have been hardest hit not just by the plunge in demand but because workers who had returned from India after 21 July started falling sick.One of those hit was Jagadamba Steels, whose Sahil Agrawal says: “The sale of steel rods had picked up somewhat after the lockdown was lifted, but after workers tested positive, the local administration closed the factories. Now, with the lockdown everything is closed.”Even worse hit is the tourism and <a href="https://www.nepalitimes.com/latest/domestic-flights-need-to-resume-so-the-economy-can-take-off/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/domestic-flights-need-to-resume-so-the-economy-can-take-off/&amp;source=gmail&amp;ust=1598352647268000&amp;usg=AFQjCNHQz5xiYmnvrrNu2XXeOqvI6eqyXQ">aviation sector</a> where revenue is zero for the past five months. Banks had given loans worth Rs1.1 trillion for hotels and restaurants, and had lent Rs40 billion to the transport sector. They are not in a position to replay even the interest, let alone the capital.Imports are down 20%, from Rs1.7 trillion in the first half of last year compared to only Rs85 billion in the same period this year. That should be good news, but it means the <a href="https://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/&amp;source=gmail&amp;ust=1598352647268000&amp;usg=AFQjCNEHmYyroAVpq5ZVmt1E9zdYH6duUQ">government’s tax revenue</a> has gone down by more than half.The middle class has been hit hardest with incomes falling. Of the 923,000 registered businesses in Nepal, nearly all are small and medium enterprises employing less than ten people. As a result, house and property transactions have gone down by half last month compared to the same period in 2019.“Except for mobile phones, motorcycles, fast moving consumer goods, nothing else is moving,” says Golchha. “Even when they do shop consumers are buying cheaper items, which is an indicator of a drastic fall in income.”Even the sale of alcohol products are down by up to 80%. Bhat Bhateni Supermarket’s Panu Poudel says turnover in the nationwide chain had picked up after 21 July, but was still down by a third, but now it is back to zero again.But the real barometer of just how bad the crisis is can be felt in the banking sector where on the one hand liquidity is overflowing because of reduction in loan disbursement, but collection has also shrunk because of defaults. The print editions of the Nepali language press in the past month are full of bank notices for auctions of collateral property. However, even if the property is up for auction, they may be no buyers.In the whole of July-August the banks collected Rs34 trillion in loan repayments, but they lent only Rs28 billion. “The reason is that it is difficult enough just to survive for businesses, and they are in no position to take a loan to invest,” says businessman Pashupati Murarka.The government had told borrowers they had a grace period till December to repay bank loans without being put on the defaulters’ black list, but it is looking like even that is being optimistic.One ray of hope for businesses was that public spending would increase in the run up to Dasain, which this year falls at the end of October. But most businessmen have given up on a Dasain-Tihar revival this year. Car sales used to go up at this time, but the Nepal Automobile Dealers’ Association has cancelled its annual auto show, and its chair Krishna Dulal says: “This year we are just trying to get by, there is no hope for sales.”With revenue down, the government will be forced to borrow. But the state borrowing already makes up 37% equivalent of the GDP, and it could go up to 51% by the end of this fiscal year. Economist Govinda Bahadur Thapa says the government may run out of money if the current trend continues. He says: “We have brought the economy to a standstill to save lives, but we need to save the economy as well. It is a very difficult balance.”Former finance secretary Rameshore Khanal is not as pessimistic. Although he does not discount the seriousness of the crisis, he thinks what could save Nepal is that it is still largely a subsistence economy and families have coping mechanisms to get by in times of extreme hardships. For example, <a href="https://www.nepalitimes.com/latest/cash-flow-crisis-for-migrants-and-families/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/cash-flow-crisis-for-migrants-and-families/&amp;source=gmail&amp;ust=1598352647268000&amp;usg=AFQjCNEYYoLn_p_-ES3VLLcSEZMh_J0QPQ">remittances from Nepalis working overseas</a> have not gone down despite predictions it would drop drastically.He says the <a href="https://www.nepalitimes.com/latest/ways-nepal-can-rebound-from-covid-19/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/ways-nepal-can-rebound-from-covid-19/&amp;source=gmail&amp;ust=1598352647268000&amp;usg=AFQjCNH425REk3c_X8wnX5A6WbreQBdGKw">crisis also presents opportunities</a> for the government. “We can have a pro-active policy to channel unemployed Nepalis to the jobs 1.5 million Indian workers used to do before they went home, and this would be the time to flood the market with liquidity in order to inject cash and raise purchasing power.”Read also: <a href="https://www.nepalitimes.com/latest/ways-nepal-can-rebound-from-covid-19/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/ways-nepal-can-rebound-from-covid-19/&amp;source=gmail&amp;ust=1598352647268000&amp;usg=AFQjCNH425REk3c_X8wnX5A6WbreQBdGKw">Ways Nepal can rebound from Covid-19</a>, Bikash Pandey

Economic cost of 5 months of Nepal lockdown

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171152/636937c29c7e80680e03fe5ajpeg.jpg" alt="" width="700" height="793"/>After ten years of blood and 12 years of trying to come to terms with why it was shed, Nepalis had great hopes for 2018.Last year this time, there was a sense of achievement and optimism. The first <a href="https://archive.nepalitimes.com/article/editorial/the-election-fever-federal-and-parliamentary-election,3982" target="_blank" rel="noopener">elections for three levels of government</a> under the new Federal Constitution had been held. The UML <a href="https://archive.nepalitimes.com/article/nation/show-stopper-headline,4101" target="_blank" rel="noopener">Maoist alliance swept the elections</a>, and the expected unification of the two <a href="http://archive.nepalitimes.com/article/nation/a-two-party-state,3968" target="_blank" rel="noopener">parties</a> was supposed to mark the end of unstable coalition politics, and finally deliver development. We had a straight-shooting <a href="https://www.nepalitimes.com/opinion/oli-here-for-good/" target="_blank" rel="noopener">can-do prime minister</a>, who despite failing health, had shown gumption and promise during campaigning.One year later, much of the <a href="https://www.nepalitimes.com/banner/let-a-thousand-flowers-bloom/" target="_blank" rel="noopener">euphoria has evaporated</a>. The past year has been one of missed opportunities, miscues, inaction and blatant blunders. Two months after the election results became clear, the lameduck Nepali Congress prime minister finally stepped down and the two communist alpha males K P Oli and Pushpa Kamal Dahal decided to <a href="https://www.nepalitimes.com/here-now/one-body-two-heads/" target="_blank" rel="noopener">co-chair their united party</a>, and rotate the prime ministership.Formal party unification took another month. Still, there was hope that Oli would hit the ground running, even if it was through showcase development, cleaning up the roads of the capital and launching major projects.Alas. It may have been unrealistic of us to expect the same septuagenarians from the same parties to suddenly govern with accountability and efficiency. The Nepali people did not expect much, so they were not surprised to see no improvement in their lives. The roads were still dug up, the <a href="http://archive.nepalitimes.com/article/nation/public-transport-syndicate,3531" target="_blank" rel="noopener">bus syndicates</a> that Home Minister Ram Bahadur Thapa promised to eradicate were still around, tanker operators were still striking for the right to steal oil, the culprits who absconded with 33 kg of smuggled gold were never caught, nor those responsible for the <a href="https://www.nepalitimes.com/banner/justice-for-sale/" target="_blank" rel="noopener">rape-murder of Nirmala Panta in Kanchanpur</a>.There were some bright spots, and these were mostly in sectors led by efficient and relatively young former UML ministers in the Cabinet like <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/" target="_blank" rel="noopener">Rabindra Adhikari</a> (Tourism), <a href="https://www.nepalitimes.com/here-now/win-win-migration/" target="_blank" rel="noopener">Gokarna Bista</a> (Labour) or <a href="https://www.nepalitimes.com/banner/calendar-of-economic-change/" target="_blank" rel="noopener">Yubaraj Khatiwada</a> (Finance). But even they are finding it difficult within their ministries to get the wheels of government to turn.The rent-seeking state is so habituated to extortion and extraction that Bista has run into a wall in implementing his ground-breaking accord with the new regime in Malaysia to remove <a href="https://www.nepalitimes.com/banner/kleptocrats-of-kathmandu-and-kualalampur/" target="_blank" rel="noopener">exploitation and costs for Nepali migrant workers</a>. Adhikari, despite all his efforts, cannot go beyond cosmetic improvements at Kathmandu airport. Khatiwada’s valiant efforts at fiscal discipline and capital spending are not yielding results, and this has resulted in a <a href="https://www.nepalitimes.com/opinion/banking-on-a-course-correction/" target="_blank" rel="noopener">liquidity crisis that threatens the banking sector</a>.If that is how honest politicians are prevented from delivering, one can imagine what is happening in the ones led by corrupt and ruthless ministers lining their pockets as if there was no tomorrow. The sordid list of impunity and abuse of authority is long and makes for thoroughly depressing reading every morning: ambassadors on the take from traffickers, justices who hurriedly clear criminals ahead of their imminent retirement, absconding multiple-murderers appearing on stage with the CDO and police, and a ministerial secretary demanding a Rs250 million bribe to release funds for the much-delayed Melamchi water project.What is worse is that the public is now so cynical about officials plundering the state that these investigative reports do not even raise eyebrows anymore. Media exposes cause a brief flutter before society shrugs, and moves on.We hoped to be able to wish our readers a happy new year 2019. But Nepal and Nepalis will probably just muddle through another 52 weeks.

A year wasted

Nepal’s Gurkha soldiers have a well-deserved reputation worldwide for uncommon valour and loyalty. However, what happened in Hawaii in 1986 and the long struggle for fair pay and pension shows that the formidable fighters from Nepal also do not tolerate injustice. The Hong Kong-based 1st Battalion of the 7th Duke of Edinburgh’s Own Gurkha Rifles was in Hawaii for jungle warfare training exercises at the Joint Pacific Multinational Readiness Center when they beat up their commanding officer, Major Corin Pearce. &nbsp;&nbsp; The Gurkhas said Pearce had insulted them, and 111 soldiers were dismissed. Pearce suffered broken ribs and a head injury, and was himself also discharged. The incident got worldwide publicity and enforced the belief that the Nepalis were not treated fairly in the British Army. It also led some retired soldiers to begin a decades-long struggle for compensation at par with their British peers.&nbsp; Retired British Gurkha soldier Shankar Rai in his book Triumph and Tears revisits the Hawaii incident which he witnessed, and also his experience in the Falkland Islands/Malvinas war in 1982.&nbsp; He has lots of grievances: unequal treatment and injustice from the British Army towards himself and his comrades. This is an indignant and disillusioned account of the good, the bad and the ugly of being a British Gurkha, which he says let him down despite his service and belief in it.&nbsp; The book could also be a cautionary tale of how one person on a power-trip can tarnish two centuries of the shared history of Nepal and the UK, as well as ruin the lives of those involved. It also is proof that loyalty should never be taken for granted. Four years after defeating the Argentinians in the Falklands, several companies and platoons of Gurkha rifles were stationed in Hawaii in 1986 for joint US-UK ‘Exercise Union Pacific’ military exercises. The goal was to ‘perfect the art of marine warfare in collaboration with the US Marine Force’. The rules were that a British Gurkha company commander needed to have the rank of major and pass a Nepali language test. Captain Pearce was the son-in-law of a British Brigadier on extra-regiment employment, and this rule was waived. He was appointed Acting Major. Pearce didn’t bother to learn Nepali language or culture, and from Rai’s account took every chance to belittle and embarrass the Gurkhas as poor, stupid, rude, backward, and lucky to be there. He writes: ‘After Captain Pearce reached Hawaii, he began to project himself as a master and the Gurkhas as servants, to show off to the Americans.’ The author also recounts other slights, such as only receiving a fourth of the rations they were due during hard training, being forced to train even when some of the soldiers had high fever, and claims to have ‘civilised’ the Nepalis.&nbsp; Pearce had been to eastern Nepal before the training and seen the grinding poverty. He kept telling the Gurkhas how lucky they were to be in the job, and that they were making ‘more money than Nepal’s prime minister’. During the final farewell party in Hawaii, Pearce set up tables to form a saluting platform, and asked the Gurkha pipe and drum band to march around him while playing. The enraged soldiers could not take it anymore, and after the party an inebriated group ran Captains Pearce and Chandra Kumar Pradhan out of their tents and beat them up. Both officers broke ribs, and the major needed 15 stitches on his head. ‘This sorry and unseemly episode is considered to have been entirely at odds with the Brigade of Gurkhas’ tradition of loyalty and gallant service in the British Army. It is regarded as an isolated and untypical event, which will not be permitted to detract from the high esteem in which the Brigade is held,’ reads the report of an investigation. Most of the 1/7 company soldiers were dismissed whether they had been involved in the assault or not. The author describes the shame that followed, with dismissed soldiers returning to Nepal with lost face.&nbsp; ‘I burned with humiliation, and life scared me,’ writes the author, whose father told him that he was ashamed to call him his son. ‘Many of my friends’ girlfriends left them and married other people. Rifleman Khem Gurung (21162015) of Itahari committed suicide,’ writes Rai, adding that those dismissed were blacklisted, and could not get other jobs.&nbsp; They tried to pursue legal action against the British Government, but backed down when they could not afford expensive hotshot lawyers, and would not have the money to cover the British government’s legal fees in the likely case of a loss in court. Gurkhas who had served for four years in the UK were allowed to move there, an option that many of those dismissed in the Hawaii incident took, including the author, who now lives in Oxford. Rai pours out his hurt and emotion in the book. Towards the end, he writes: ‘I depend on small jobs for livelihood. In the remaining time, I actively raise the issue of the victims of the Hawaii incident. We are burdened with insults, hatred, and contempt for a lifetime. It was harsher than a court martial, too heavy to bear.’ The is a slim book, and is a quick, engaging read of an incident 30 years ago, and Rai writes with a soldier’s precision. Even though the anger shows even after all these years, there is no over-dramatisation in the narrative.&nbsp; The first part of the book is about sailing across the South Atlantic in the QEII, which had been converted into a troop ship to take the Gurkhas to war. The soldiers from landlocked Nepal were mostly sea-sick, but were happy to get two cans of beer a day. Barclays Bank even had a branch on board. Rai’s descriptions of the friendships he developed in the Company and on the battlefield are poignant. They braved Argentinian bombs, dug trenches and fought through the rain in the Southern Hemisphere winter. There are vignettes of sharing tea with fellow Nepalis, seeing comrades fall, and finding pictures of wives and children in the pockets of dead young Argentine soldiers. Behind the prestige, honour and myths of being a Gurkha soldier, it seems this is just another job with nepotism, horrible bosses and bad pay. But such is the desperation that up to 20,000 young Nepalis still apply for 300 openings in the British Army every year. &nbsp;&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251227041256_694a253e782c83b0bf89fc1b9840b0ade3f7beca2d0b01dbc4fcd3e63c207f50.jpg" data-media-id="editor_0" data-image-id="20251227041256_694a253e782c83b0bf89fc1b9840b0ade3f7beca2d0b01dbc4fcd3e63c207f50" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Triumph and tears book details NT"> </figure>

Not taking loyalty for granted

After a week of to-and-fro that culminated in all-night bargaining, two populist young figures in Nepali politics agreed at 4AM on Sunday to join forces ahead of elections in March. Rabi Lamichhane of the RSP, who came out of jail a week ago, has forged an alliance with Kathmandu mayor Balen Shah. Both are keen to ride on the GenZ wave that radically changed the direction of Nepal’s politics that has been dominated by three mainstream parties for the past three decades. Under the 7-point deal, Lamichhane will still head the RSP, while Shah has been promised prime ministership if the party wins a majority in the federal elections. Shah will also be the parliamentary party leader. The RSP will keep its name and election symbol. “Agreements must be made not on the basis of what leaders want, but on what the country needs,” Lamichhane wrote on social media announcing the alliance. The RSP chair is said to have put his own prime ministerial aspirations on hold to ensure the Kathmandu Mayor's support for the March polls. This is an alliance of convenience. Lamichhane requires the backing from Shah’s youth voters to face the legacy parties, while the mayor needs a political platform. Ultimately the prospect of leading not just Kathmandu but Nepal itself appears to have been the deciding factor for Balen Shah. The Kathmandu mayor is reportedly keen to contest the election from Jhapa against former prime minister K P Oli in his constituency.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251228041212_1b26fd7f14e418a9bdb827a7b733914c08183c36b4a93694fc1aefda9f45d85a.jpg" data-media-id="editor_0" data-image-id="20251228041212_1b26fd7f14e418a9bdb827a7b733914c08183c36b4a93694fc1aefda9f45d85a" data-rendition-name="original" width="900" height="900" loading="lazy" alt="Balen-Rabi alliance"> <figcaption>Photo: BALEN SHAH, RABI LAMICHHANE / FACEBOOK</figcaption> </figure>  The two have much in common. Lamichhane, a former tv anchor, returned from the United States and launched the RSP as an alternative party four months before elections in 2022. He served as Home Minister twice in Pushpa Kamal Dahal's coalition government before being jailed for defrauding cooperatives depositers. He made a jail break during the September protests, returned to prison voluntarily, and was released on bail last week. Balen Shah stood as an independent candidate for mayor of Kathmandu in local elections in 2022, and was catapulted to victory because of anti-incumbent protest votes among urban youth.&nbsp; Both campaigned on social media, pushing a populist anti-corruption agenda and against the governance failure of the three establishment parties — the same logic that drove the GenZ protests in September that escalated into violence and brought down the UML-NC coalition. Even as government buildings smouldered on 10 September, GenZ members were strongly urging Balen Shah to be the interim prime minister, but when he declined they voted on Discord for former chief justice Sushila Karki.&nbsp; With just over two months to go for elections on 5 March, Prime Minister Karki has been trying desperately to get the mainstream parties on board. She has met twice with the top leaders of the UML, NC and the NCP. All three parties have been dealing with internal power struggles, and the UML appears to be the most reluctant to face elections.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251228051212_d42944e014b278d6864270b74f924ac842d6f7a68d5bd6817148d120522ba60b.jpg" data-media-id="editor_1" data-image-id="20251228051212_d42944e014b278d6864270b74f924ac842d6f7a68d5bd6817148d120522ba60b" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Sushila Karki with political leaders"> <figcaption>Prime Minister Sushila Karki has been meeting with leaders of the mainstream parties to get them on board for the election. Photo: PMO</figcaption> </figure>  The UML’s former prime minister K P Oli has refused summons by the Judicial Inquiry Commission charged with investigating the massacre of protesters on 8 September and the arson and vandalism the next day. Then home minister Ramesh Lekhak is scheduled to give his deposition to the Commission this week. The legacy parties appear to be taking the threat from the Rabi-Balen partnership strongly, and have been trying to forge an electoral alliance so they do not compete against each other.&nbsp; They are relying on traditional vote banks among the rural electorate, and calculate that alternative forces will cancel themselves out. They could also be hoping that Balen Shah’s erratic behaviour and Rabi Lamichhane’s prison conviction will put voters off. A total of 837,094 first-time voters have been registered in Nepal ahead of the elections.&nbsp; The Kathmandu mayor is an engineer and rap artist, and had till now been reclusive, preferring to post on social media rather than face the press. His late-night online posts have been impulsive: like the one urging that Singha Darbar be burnt down, or another one recently in which he used the f-word against the US, China, India and the mainstream parties. He later deleted both posts.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251228041212_a2f87881e36fb40b82bf77e1b07003aaf36b91e2a9eb5da096f1e562654c31e3.jpg" data-media-id="editor_2" data-image-id="20251228041212_a2f87881e36fb40b82bf77e1b07003aaf36b91e2a9eb5da096f1e562654c31e3" data-rendition-name="original" width="1112" height="1440" loading="lazy" alt="Balen Rabi agreement NT"> <figcaption>The seven-point agreement between Shah and Lamichhane. </figcaption> </figure>  Lamichane and Shah had also been negotiating with Energy Minister Kulman Ghising’s newly-forced Ujyalo Nepal Party, but the bargaining did not go well because Ghising refused to fight elections under the RSP banner. If the three had been successful in coming together, it would have been a formidable alliance. There are misgivings about the RSP-Balen Shah deal, even among some GenZ who see the two prominent men dividing up the power structure as just the kind of political culture they wanted to reform. Many are already predicting exactly the kind of clash of egos between the two alpha males that characterised Nepali politics since the restoration of democracy in 1990. In the coming days, as with most political change in Nepal, there will be much speculation about the geopolitics behind the Rabi-Balen deal. Balen Shah’s angry post against India-US-China as well as his past nationalistic pronouncements on Nepal’s territorial dispute with India over Kalapani will be recalled, while Beijing has misgivings about the antecedents of some GenZ figures. Dharan-mayor Harka Sampang, who has also formed his own political party, has already pronounced the Rabi-Balen deal as being “foreign backed”.

Old vs New in Nepal in 2026

Everyone in the world is running some kind of race. Some chase recognition. Some chase money. Others run simply to stay ahead of others. But there are some who run for others. They are not trying to overtake anyone, they do not do it for fame, they are not getting paid to do it. But they run to pay for the upliftment of those less privileged. Bal Joshi, 41, is originally from Surkhet. His father was involved in the democratic movement during the days of absolute monarchy and he remembers frequent police searches of the house. And with his father in hiding, the young Joshi had to take care of the family. When the family’s small shop failed, his mother took the young Bal and his brother back to the village, and that is where he completed his education, walking four hours roundtrip every day between home and school. He ran most of the way, and without realising it he has been running ever since. Life was hard. Rent, food, education. His mother struggled constantly. There were days when there was no money even to buy kerosene for the stove. At one point, he sold his calculator, worth Rs 300, for just Rs 80 to get by.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251229031252_edb16b64a3d362a8dc86870bfa5deaad03a84e67d47f37cfd0bb5a8e584691fe.jpg" data-media-id="editor_0" data-image-id="20251229031252_edb16b64a3d362a8dc86870bfa5deaad03a84e67d47f37cfd0bb5a8e584691fe" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Running for dear life NT"> </figure>  At 15, Joshi moved to Nepalganj to continue his education. He initially stayed with his uncles, but eventually began living on his own. The transition to city life was difficult, and he experienced significant economic hardship while trying to pursue his studies. There were times when he struggled to meet basic needs, and at one point he sold his calculator just to get by. When he was 17, after hearing that his father was seriously ill, Joshi travelled to Gujarat to bring him back home. His father died soon after, and Joshi took on responsibility for supporting his family. It was his mother who taught him that despite scarcity, life had to be lived with dignity. Joshi started working at a newspaper at the age of 16 as a proofreader, and later became a journalist. During the Maoist war when children were being orphaned as a result of violence by both sides, he became active in the Sahara Group, and at 19, he began managing an orphanage that took in conflict-affected children. In Bajhang, after the army killed a man on suspicion of being a Maoist, his wife jumped into the Seti River and ended her life. Their two children were taken into army custody. During the rescue process, Joshi met Sunaina Adhikari of the ICRC and back in Nepalganj they decided to get married. The conflict was still raging in western Nepal in 2005, when Joshi went to the United States. In Maryland, he initially worked at a Bengali-owned Subway outlet, spending long hours on his feet behind the counter. He changed jobs frequently, financing his education along the way, and ultimately graduated with a degree in finance in 2008. He joined Hancock Whitney Bank in Texas, and has risen up the ranks to be Senior Vice President. A colleague inspired him to run as a way to stay healthy. But it soon turned into something more meaningful — running more than a dozen 50km marathons for charity.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251229031252_165a6d935860cf6707178aa2ac7395733883158f425bbe0ebed125529d601f61.jpg" data-media-id="editor_1" data-image-id="20251229031252_165a6d935860cf6707178aa2ac7395733883158f425bbe0ebed125529d601f61" data-rendition-name="original" width="999" height="1500" loading="lazy" alt="Running for dear life NT"> </figure>  Last year, Joshi returned to Nepal to run the Everest Marathon, and raised $42,000 which he donated to <a href="https://onestepfoundation.org/" target="_blank">One Step Foundation</a> which works on health care, child welfare and cultural preservation in Nepal and around the world. In June this year, Joshi and his family climbed Kilimanjaro, raising $19,000 for 80 HIV-affected orphaned children in Tanzania. During the Diwali festival he ran 220km in Nevada’s Red Canyon and raised $25,000 for cataract surgeries through the the <a href="https://www.theruitfoundation.org/" target="_blank">Ruit Foundation</a> in Nepal for cataract surgeries.&nbsp; Joshi does not run competitions, and is not trying to break any records. His motto is: “My race, my pace.”&nbsp; Turning his childhood scarcity into helping others, he says: “We all share sunlight, rain, air, and soil, nothing is truly just your own. I grew up without shoes, and I am fortunate to be able to distribute shoes to those who walk barefoot.” We ask Bal Joshi what (and where) next? His answer: the <a href="https://www.worldmarathonchallenge.com/" target="_blank">World Marathon Challenge</a> that will go around the world to run seven marathons in seven continents in seven days beginning in Antarctica at end-January.&nbsp; Joshi aims to run wearing the daura suruwal and Nepal’s flag as to show where he comes from, and how far in life he has come.

Running for dear life

The Narayani River in Chitwan National Park is at only 180m above sea level, but &nbsp;on a rare clear day last week visitors could see the summit of 7,893m-high Himalchuli right across Nepal, 150km away.&nbsp; Upstream, the Trisuli, Seti and Kali Gandaki &nbsp;join to form the Narayani in a catchment stretching 46,300 sq km from Dhaulagiri to Langtang — spanning one-third of Nepal’s area.&nbsp; Glaciers up in those mountains, and even a part of the Tibetan Plateau, feed the Narayani. To see the snows and river together underscores the need to regard the Himalaya not just as a mountain range, but as a composite watershed. This delicate balance between mountains and plains is now destabilised by climate breakdown. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251225111216_105ddc802eb5742227d62687c003bfdb1f3c55faba2c6352b29c2a83123247e7.jpg" data-media-id="editor_0" data-image-id="20251225111216_105ddc802eb5742227d62687c003bfdb1f3c55faba2c6352b29c2a83123247e7" data-rendition-name="original" width="4032" height="2268" loading="lazy" alt="People, naturally"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141228_b4c2c51021e6a21e6d87c748ba8eb6401827ad69d44953af842859c6839350c1.jpg" data-media-id="editor_1" data-image-id="20251224141228_b4c2c51021e6a21e6d87c748ba8eb6401827ad69d44953af842859c6839350c1" data-rendition-name="original" width="1000" height="1778" loading="lazy" alt="Chitwan National Park NT"> </figure>  “The climate crisis is a water issue. It is not just about this river, but the mountains and the glaciers we can see from,” said Adil Najam, President of the World Wildlife Fund International during a visit to Chitwan last week. “Water is going to be a frontline climate issue not only for Nepal but for the world itself. This crisis is not long-term, it is immediate-term.” Water from the Narayani, Rapti and other rivers have been vital in shaping the conservation success story of Chitwan National Park. But Nepal’s oldest nature reserve now suffers from either too much water during monsoon floods, or too little in the dry season as a result of extreme weather caused by climate breakdown. Insufficient recharge of aquifers and over-extraction of groundwater have caused oxbow lakes and wildlife watering holes inside the Park to dry up, and solar-powered pumps have been installed to replenish some of them.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141228_97cb5c51d38d4cc038fbaa305eca8e7096d2a58e573ee016fa7e2b9972e67f62.jpg" data-media-id="editor_2" data-image-id="20251224141228_97cb5c51d38d4cc038fbaa305eca8e7096d2a58e573ee016fa7e2b9972e67f62" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Chitwan National Park NT"> </figure>  Nepal tripled its tiger population to nearly 400 in the past 14 years, <a href="https://nepalitimes.com/banner/close-encounter-of-the-wild-kind-in-nepal?fbclid=IwY2xjawFomglleHRuA2FlbQIxMQABHd0IT1aTm1ugPsScRVjFSOQKx4trJC1QolMquJH-VcPA3Dsuc7J8twvEtg_aem_oRrHg17T6T0bQzRqU0AvgA" target="_blank">rhino numbers have rebounded to 752</a> with near-zero poaching for the past decade, and vulture species have been rescued from the brink of extinction — all this largely due to the <a href="https://nepalitimes.com/here-now/on-the-tri-junction-of-wildlife-conservation-conflict-and-co-existence" target="_blank">efforts of local communities in the buffer zones</a> of parks like Chitwan. “The biodiversity here was protected because conservation has been collaborative,” said <a href="https://nepalitimes.com/opinion/nepal-s-tharu-are-tiger-protectors" target="_blank">Birendra Mahato</a>, an elected member of the Ratnanagar ward adjacent to the Park. “This <a href="https://nepalitimes.com/opinion/comment/parks-plus-people" target="_blank">involvement of people in the buffer zone</a>, including us from the indigenous communities, has <a href="https://nepalitimes.com/opinion/nepal-s-tharu-are-tiger-protectors" target="_blank">helped reduce poaching and human-wildlife conflict</a>.” The <a href="http://www.apple.com/" target="_blank">Tharu, Bote and Musahar</a> <a href="https://nepalitimes.com/opinion/nepal-s-tharu-are-tiger-protectors" target="_blank">indigenous groups that used to live inside what is now the national park</a> followed traditional practices that took into account the behaviour of tigers, rhinos and wild elephants. There were few fatal wildlife attacks.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251226141228_d7c2df18d98d99c32d63ccce53edbe48a36a6a65612e3042f7e93b646f9d86ee.jpg" data-media-id="editor_10" data-image-id="20251226141228_d7c2df18d98d99c32d63ccce53edbe48a36a6a65612e3042f7e93b646f9d86ee" data-rendition-name="original" width="828" height="693" loading="lazy" alt="CNP map"> </figure>  “We need to revive that traditional knowledge so there is human-wildlife coexistence, not conflict,” Mahato added.&nbsp; And communities living in the buffer zone will only protect wildlife if they see a benefit from saving them. The proven way to ensure that coexistence is through well-managed and sustainable tourism that lifts local living standards. The village of Amaltari along the Narayani river has several high-end resorts that employ local people as nature guides, hotel staff and cultural groups performing for tourists. Besides these, the village has 35 women-led homestays where visitors can experience indigenous culture, food and lifestyle.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141228_759ae97bf2c2f0365e1340cb8468cd9fc44ae735d50a1c76ce92d4651cb08da1.jpg" data-media-id="editor_11" data-image-id="20251224141228_759ae97bf2c2f0365e1340cb8468cd9fc44ae735d50a1c76ce92d4651cb08da1" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Chitwan National Park NT"> </figure>  “Lifting living standards is the most effective way to ensure nature conservation, and this means protecting authentic local heritage to generate income from tourism,” Adil Najam said (Interview, below). Tourists come to the buffer zone in the western edge of Chitwan National Park in Amaltari for safaris to see tigers, rhinos, the vulture conservation site, or to float down the river to watch the gharial, crocodiles and migratory birds. Chitwan National Park saw 300,000 visitors last year, with Nepalis now outnumbering foreign tourists. Gita Mahato runs one of the Amaltari homestays and admits that it was not easy in the beginning to ensure that the quality of service was up to mark, and business suffered during and after the pandemic. “But now we have more experience and confidence, our incomes have gone up, and it has restored pride in our culture and helped protect nature,” she added. “It is like a fairy tale.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251225111216_e136c9d7242193503080782d916209f8223d9c74079180b49c099083c27e4b09.jpg" data-media-id="editor_12" data-image-id="20251225111216_e136c9d7242193503080782d916209f8223d9c74079180b49c099083c27e4b09" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="People, naturally"> <figcaption>Vulture feeding at Jatayu which has rescued the raptors from the brink of extinction. </figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141228_58a4185f90c35a47806a077a19e7f24d8a9635ac45e8ce457f03a7604ba534b5.jpg" data-media-id="editor_13" data-image-id="20251224141228_58a4185f90c35a47806a077a19e7f24d8a9635ac45e8ce457f03a7604ba534b5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Chitwan National Park NT"> </figure>  Improved living standards have impacted other social aspects: there are schools, children have better nutrition, child marriage has gone down, no one is stealing electricity with hooks anymore, and there are now three beauty parlours in Amaltari.&nbsp; WWF Nepal helped with seed money to set up the local Hamar Cooperative, which ploughs tourism income into a savings scheme that lends to members. There are no defaulters, and the indigenous <a href="https://nepalitimes.com/opinion/parks-by-the-people-and-for-the-people" target="_blank">Musahar, Bote and Tharu</a> households now have savings. The municipality has built electric fences to protect the rice and mustard fields from wildlife, and this has eliminated fatalities here from tiger attacks. The community’s Anti-poaching Youth Group and the Park’s military have increased vigilance after the jailbreak of notorious wildlife traffickers in September.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141228_3cff4bdf947bbcb070fe584ab628fb1b79cec047236e56a4486070f8f66ae42d.jpg" data-media-id="editor_15" data-image-id="20251224141228_3cff4bdf947bbcb070fe584ab628fb1b79cec047236e56a4486070f8f66ae42d" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Chitwan National Park NT"> </figure>  Chitwan and other <a href="https://nepalitimes.com/here-now/on-the-tri-junction-of-wildlife-conservation-conflict-and-co-existence" target="_blank">national parks and buffer zones</a> across Nepal are conducting a massive tiger census this week, installing 1,100 camera traps. The cameras also help to curb poaching, and the total tiger population is expected to exceed 400. Says Ghana Gurung from WWF Nepal: “This is the best example that protecting one charismatic species that is at the top of the food chain helps to protect biodiversity and the entire ecosystems.” <h2>“Water is the frontline climate issue”</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251225111216_8bf2b772f726c8f9eb11cc5b79f5c9c8afa115ee0eb170e69f52bf07a6a1e222.jpg" data-media-id="editor_17" data-image-id="20251225111216_8bf2b772f726c8f9eb11cc5b79f5c9c8afa115ee0eb170e69f52bf07a6a1e222" data-rendition-name="original" width="1619" height="1000" loading="lazy" alt="People, naturally"> <figcaption>Adil Najam with young Buffer Zone forest guides.</figcaption> </figure>  World Wildlife Fund International President Adil Najam was in Chitwan last week, and spoke to Ghana Gurung of WWF Nepal. Ghana Gurung: What are your impressions after visiting Chitwan National Park? Adil Najam: I always knew Nepal was special, and the work of WWF Nepal was special, but I just didn’t realise how special. Seeing the work first hand in Chitwan with species protection, zero-poaching and, most importantly, how to work with communities, particularly with indigenous communities so that we turn this rhetoric of nature vs people into truly a bridge of nature and people. Meeting members of indigenous communities and conservation officials, seeing their sense of pride about what has been achieved was very motivating.&nbsp; So much of what you are doing here in Nepal is relevant to the UN’s SDG goals and WWF’s own 2030 roadmap — especially our core work on species. The challenges are great, but we do not take enough time to appreciate the achievements. We haven’t got to where we want to yet, but we are much further down the road. Tigers have almost tripled, rhinos more than tripled, zero poaching for many years, and all of this with a grassroots approach working with communities. It is not always easy, their concerns are real, but working with them as partners shows that conservation and people do not need to be contradictions.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251225111216_988386ce4e292ca298d9546035cb5e51f4b0c4bed3c6069b269360c2c1d3c98e.jpg" data-media-id="editor_18" data-image-id="20251225111216_988386ce4e292ca298d9546035cb5e51f4b0c4bed3c6069b269360c2c1d3c98e" data-rendition-name="original" width="4032" height="2268" loading="lazy" alt="People, naturally"> </figure>  You mention challenges. What are some of the difficulties ahead? When you are working at a high level, the first challenge is keeping it at that level. Unfortunately global challenges like climate change, biodiversity loss are now so great that we have to multiply our efforts multiple times. Nepal also needs to share what you do here with the rest of the world. Unless we learn from each other, we are not going to solve the planetary crises. I was very happy to see how much the youth are involved in Nepal’s conservation effort, but the challenge will be how to get young people excited about conservation with an aspiration to do more.&nbsp; Yes, we try to work more with the youth. What were some of the other highlights of the trip? Clearly, one of the outstanding highlights was the visit to the homestay collective run by indigenous communities, particularly that they are women-led and they have become entrepreneurial, learning new ways to work with nature, designing new livelihoods, by having guests who enjoy nature. The homestay program in Nepal really has ownership and links nature and people.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141228_d8d27836a3d549713d2ff80687c32c2f7723a1c5bd778833852d0216a447b4f7.jpg" data-media-id="editor_19" data-image-id="20251224141228_d8d27836a3d549713d2ff80687c32c2f7723a1c5bd778833852d0216a447b4f7" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Chitwan National Park NT"> </figure>  Nepal is one of the most climate vulnerable countries in the world. What were some of the impacts you noticed?&nbsp; I think every country now is climate vulnerable. For the developing world, it is a a compounded challenge not only because they were not responsible for the problem, but also because we now face its consequences. Because the world has not done very much on mitigation, the challenges have become more difficult. Besides carbon mitigation, we need to focus on adaptation and address the issue of water.&nbsp; Climate in the age of adaptation essentially becomes a water issue, and Chitwan has done well to protect its fresh water habitats. It is not just about these rivers, but the mountains and the glaciers we can see from here that feed them. We have compartmentalised problems: this is climate, this is biodiversity, that is plastic. That is not how nature works. There is no solution to the climate challenge without dealing with nature, and vice versa. So, water is going to be a frontline climate issue not only for Nepal but for the world itself. Leadership on climate will have to rest with countries like Nepal in demonstrating ways to build climate resilience. And resilience resides in people. Given this, what are the strategies we need going forward? We are seeing resource constraints, and that is not news. But beyond that many of the biggest challenges of our time are at threshold or beyond threshold level — whether they are climate related, loss of nature, or water stress, etc. We are at this pivotal point, and I hope we will invent better ways on how to deal with these crises. As you already do in Nepal, we have to look at ecosystems as integrated and connected, where doing good for one thing has a positive impact on another. We know that with species here in Chitwan — if one species does well, a whole bunch of others also benefit.&nbsp; &nbsp;And like you do here, we have to work in partnerships with communities, conservation people, other international organisations, the private sector. This is not the time for finding your corner and hiding in it. This is a planetary problem, and we need a 8 billion people solution.&nbsp; And the writing on the wall in Nepal and elsewhere is that young people are the key to the present and the future. It is really their world. We have to create an environment in which they can thrive to reach their own potential. And we have to give them the sense that although things are difficult, if we do the right things there are solutions. This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251224141220_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_23" data-image-id="20251224141220_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG"> </figure>