<figure><img width="1312" height="985" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101136/63720c499c7e80680e0b785fjpeg.jpg" alt=""/><figcaption>Nepali Times #1076 27 August - 2 September 2021</figcaption></figure>Two Nepali reporters are winners in top investigative journalism awards announced on 2 March, and have been recognised for their exposés of injustice.Namrata Sharma was awarded for her collaborative investigation with <a href="https://twitter.com/LucCaregari" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://twitter.com/LucCaregari&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw2CyCMOSnO6MAhntAjBoSiD">Luc Caregari</a> from <a href="https://www.reporter.lu/menschenhandel-in-luxemburg-ausbeutung-hinter-legaler-fassade/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.reporter.lu/menschenhandel-in-luxemburg-ausbeutung-hinter-legaler-fassade/&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw2a_UpgwMRRcKDJR3jEFiGC">Reporter.lu</a> and <a href="https://www.financeuncovered.org/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.financeuncovered.org&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw0I9wU_d46sSthh3mtbv5Tz">Finance Uncovered</a>, of the human trafficking of Nepali workers by Nepali-owned restaurants in Luxembourg. Bhrikuti Rai’s investigative report exposed illegal sand-mining in Nepal and the murder of environmental activist Dilip Mahato three years ago. She got the <a href="https://fjawards.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://fjawards.com&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw2fAtsKTHconWIM0lnHsZ5T">Fetisov Journalism Award 2021</a> in the category Excellence in Environmental Reporting. Namrata Sharma is the former Chair of the Centre for Investigative Journalism Nepal (CIJ-N), while Bhrikuti Rai reported for Nepali Times and The Kathmandu Post. Both the award-winning investigative reports had been carried in Nepali Times in 2021.Sharma’s investigation built on a <a href="https://www.nepalitimes.com/latest/nepali-restaurateurs-fined-in-finland/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepali-restaurateurs-fined-in-finland/&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw0uec_Ugialaei4yVhxvfSa">previous story</a> involving human trafficking and modern slavery in the Nepali restaurant trade in Finland. She used her extensive contacts in the South Asian migrant community across Europe to expose the crime in her collaborative story <a href="https://www.nepalitimes.com/here-now/nepalis-abused-by-nepalis-in-luxembourg/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepalis-abused-by-nepalis-in-luxembourg/&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw1TinxURPSJQVRybROg2io_">‘Nepalis exploited by Nepalis in Luxembourg’</a>.  <figure><img width="640" height="603" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101136/63720c4c9c7e80680e0b7860jpeg.jpg" alt=""><figcaption>Namrata Sharma</figcaption></figure>Workers at a popular Nepali restaurant in the Grand Duchy told her of serial beatings and other human rights abuses by the owner. The workers themselves had been trafficked from Nepal, and lured after paying money to the owners for their work permits.Although initially fearful of speaking out, the workers told Sharma about how they were barred from going out, their passports were confiscated, and their bank accounts controlled. The owners withdrew their employees’ wages,  and  made them work for free for a year.Sharma is working with other European whistleblowers on cross-border investigations of abuse and human trafficking by other Nepalis. <figure><img width="1317" height="987" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101136/63720c509c7e80680e0b7861jpeg.jpg" alt=""><figcaption>Nepali Times #1043 8-14 January 2021</figcaption></figure><figure><img width="600" height="600" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101136/63720c539c7e80680e0b7862jpeg.jpg" alt=""><figcaption>Bhrikuti Rai</figcaption></figure>Bhrikuti Rai’s story, ‘<a href="https://nepalitimes.com/drawing-a-line-in-the-sand/#gohere" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://nepalitimes.com/drawing-a-line-in-the-sand/%23gohere&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw1e4PAIVaCGboRIZClY_mia">Drawing a line in the sand’</a>, was published in Nepali Times last year and used the first anniversary of the murder by the sand mafia of activist Dilip Mahato to show how illegal sand-mining continued unabated and his family still sought justice for the crime. Winners in other categories include Corinne Redfern and Ali Ahsan for their joint Italy-Bangladesh investigation of sex trafficking, an expose of how the caste system persists in India’s prison system by <a href="https://fjawards.com/finalists/105-sukanya-shantha/article" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://fjawards.com/finalists/105-sukanya-shantha/article&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw2ZzMxaVzjqIV6Q4IRo3MeI">Sukanya Shantha </a>of The Wire website, and an <a href="https://fjawards.com/finalists/78-audrey-travere-phineas-rueckert-paloma-dupont-de-dinechin/article" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://fjawards.com/finalists/78-audrey-travere-phineas-rueckert-paloma-dupont-de-dinechin/article&amp;source=gmail&amp;ust=1646323804757000&amp;usg=AOvVaw0NEVr-IpgY03bmbJL7Ln_2">international investigation </a>of the Asian connection of the Mexican drug cartels.Finance Uncovered is an international investigative journalism training organisation that aims to improve the quantity and quality of investigative stories that are rooted in illicit finance or exploitation. The Fetisov Journalism Award was founded by Gleb Fetisov, a businessman, producer, scientist and philanthropist.

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Nepalis win two investigative journalism awards

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141132/636cfdd89c7e80680e0a0c08jpeg.jpg" alt=""/><figcaption>Scars of injuries sustained by Shyam in his scalp when his Nepali employer in a restaurant in Luxembourg allegedly beat him with a tandoor skewer, ladles and other objects.</figcaption></figure>The Nepali restaurant is located in the richest country of the European Union, and its Facebook page is full of recommendations from guests lavishing effusive praise on its cuisine and service. The page also contains a post from its owner saying that the restaurant's chefs and staff prepare all meals with great care so that guests leave with satisfaction and good memories. What the Facebook page does not say is that the chef and staff had been made to work more than 18 hours a day as virtual slaves with their bank accounts, and in some cases passports, in the hands of an abusive owner. Luxembourg is Europe’s smallest country, and has the world’s highest GDP per capita. It is one of the founding members of the European Union, is one of its four capitals, and is also the seat of the Court of Justice of the European Union. Some of the restaurant’s regular customers could have been rich Europeans and those who worked on human rights. However, they were oblivious to the mistreatment and abuse of the restaurant’s Nepali staff by its Nepali owner. <a href="https://www.nepalitimes.com/opinion/two-decades-of-debate-on-female-migration/">Two decades of debate on female migration</a>, Upasana Khadka “I arrived in Luxembourg in October 2015 with a work permit sent to me by the owner of the restaurant,” says Shyam from Baglung, who paid for his own air ticket. “I wanted to live a decent life and save enough to provide for my family. But what a disappointment it has been.” In a series of phone calls from Luxembourg, Shyam spoke of chronic beatings, abuse, withholding of salary, and substandard living conditions. Unable to bear it any longer he and some other co-workers lodged a complaint with the Luxembourg police in July.  The case will now be further investigated by the Police Judiciaire, and based on its verdict the prosecutor's office will decide whether there is enough evidence of human trafficking to file charges. After several attempts to contact the restaurant owner, he finally responded via an email from his lawyer denying all accusations. He says he had neither mentally nor physically abused his staff, or forced them to work for free for 16 months or work extra hours.  ‘All the claims made by my ex-employees are false. They might have received a better offer from competing business and hence they fled from the restaurant housing overnight leaving a resignation letter in my mailbox,’ he states in the email. ‘This is nothing but a stunt to defame my image and damage the reputation of my very well-established business.’  Luxembourg law does not permit naming of the restaurant and the owner, unless convicted, but Shyam’s story has been corroborated by two of his colleagues as well with depositions he made with the local Nepali community and the police.   When he arrived Shyam was given space above the restaurant to share with two other co-workers. The toilets were rudimentary, and they were allowed to take a bath only once a week and that too, very grudgingly.  The restaurant’s cook, Binod, left soon after Shyam arrived because he could not tolerate the injustice of the owner, who happened to be his relative. Nepali Times tracked down Binod in Chitwan this week, and he confirmed that the owner was physically abusive and exploited his employees from Nepal. Binod is an experienced chef, having worked for 12 years in India and seven years in Qatar before spending €3,000 of his own savings to go to Luxembourg to work for his relative, who sent him a work permit.   <a href="https://archive.nepalitimes.com/article/nation/caught-in-the-middle/migration-agency-exploitation,4003">Caught in the middle by middlemen</a>, Upasana Khadka He also agreed to work for 12 months without pay in lieu of his work permit. He was hired as a chef, but was asked to also do all the shopping, carrying heavy goods into the store, cleaning and other chores. He had been promised a four-hour working day, but ended up doing 18-hours a day.  Binod’s passport was taken away from him, and his phone calls were monitored. After he found the abuse intolerable, Binod asked his relative for his passport and money, but he lost his temper and beat him with anything he could lay his hands on. His employer opened a bank account in Binod’s name and would deposit about €2,000 every month. But the restaurant owner kept all the passwords himself and Binod could not have access to his account. The owner then withdrew most of the salary he had deposited, and gave only €500 to him. At first, Binod says he did not complain because he thought that was the way things were done in Luxembourg. Binod’s unwritten agreement with his relative was that he would work for free for one year to repay him for the work permit. But he ended up working at the restaurant for no salary, no leave and no weekends for most of the 3.5 years. “When I did not do as asked, he hit me with a metal tandoor skewer or a ladle,” Binod recalls. “There were many nights when I could not sleep because of the pain from the beatings, and the pillow would be soaked with blood from wounds in my ears.”  Binod would plead with the employer to take him to hospital to get stitches, but was not allowed. After nearly four years of this, Binod’s father died and he asked his employer for leave. When the owner refused, Binod got relatives back home to buy a one-way ticket back to Nepal and never went back to Luxembourg.  Both Binod and Shyam thought the prospect of a job in Europe would change their lives, and trusted a fellow-Nepali employer. But while Binod returned to Nepal because he could not bear the mistreatment, and did not want to turn against his relative, Shyam lodged the complaint with the authorities.   <a href="https://www.nepalitimes.com/here-now/nepal-and-malaysia-rewrite-rules-for-migrant-labour/">Nepal and Malaysia rewrite rules for migrant labour</a>, Kunda Dixit Binod and Shyam talked to us separately, and one did not know the other was in touch with Nepali Times. But the pattern of abuse and the method of exploitation they described unprompted were identical in both cases.  In July, three of the Nepali workers complained to the Non-resident Nepalese Association (NRN) Luxembourg, and a section of the interaction was recorded by someone there. Shyam also said he had to work 16 hours a day without holidays, not allowed breaks or to meet with other Nepalis “I was imprisoned for seven years,” he said in the audio clip. Like Binod, Shyam’s verbal deal with the employer was that he would work without pay for the first 16 months to compensate him for arranging the work permit. But because that is not allowed under Luxembourg law, the employer would deposit €1,600 every month in his account, and he would withdraw the amount every month and hand it to the owner. He was sometimes allowed to keep €150 for himself as an allowance. For the first six months he was treated well by his employers, and he did not complain about the bad accommodation and poor food as the other employees were in the same predicament. But after that he started facing physical violence – being hit by skewers and boxed in the ears, like Binod. After 16 months, the owner made him sign an official contract as required by law. But even after that, he kept most of Shyam’s salary himself. In addition, the owner only gave the workers left-overs, vegetables and a thin gruel to eat.  “Sometimes we used scrap bones to make soup, and he would beat us up calling us thieves,” Shyam said on the phone. “At other times he would summon us in the middle of the night to massage his legs.”  Shyam says he tolerated the beatings and abuse because he did not want to lose face back home, and wanted to protect his mother from social stigma. He sold his land in Nepal, and brought his wife and two children over to Europe as well, and for this he needed his employer’s help. When he visited Nepal for the first time since leaving for Luxembourg, family members asked him about the scars on his face. He told them it was work related. Finally, unable to bear the abuse any longer, Shyam and three other staff – one of them another relative of the owner – decided to tell their story to the NRN. In the audio recording of their deposition, the relative of the owner is heard saying that although he and his wife were also mistreated, he could not come out openly to lodge a complaint because of his family ties to him.  Another staff member is overheard in the clip saying he was forbidden even to drink water or take a toilet break while in the kitchen. Shyam explained that after meeting the Nepali community, the three of them got the courage to file a complaint with the Commissariat Luxembourg on 25 July 2021. The NRN Chair in Luxembourg Hari Khatri and his family own a restaurant and grocery. He was shocked by the revelations of the four Nepali restaurant workers.  <a href="http://archive.nepalitimes.com/page/women-migrant-workers-are-doubly-vulnerable">Women workers are doubly vulnerable</a>, Rojita Adhikari “In my 23 years living here, this has never happened before in the Luxembourg Nepali community. We all lived together as one family,” Khatri said on the phone. “The case is now with the police, they will investigate and we will soon know the facts. I will try to help the staff as much as I can.” There are about 450 Nepali residents in Luxembourg and some 120 households. Many of them have come as cooks to work in Nepali restaurants, and earn enough in about six months to bring their families over. Luxembourg law allows restaurant owners to import cooks if a citizen who qualifies for the job cannot be found.  That is how Khatri himself brought his brother over in 2006, who is now well settled with his family in his own house. “But I had never heard of any Nepali not paying 16 months salary to a fellow Nepali,” he added. Like other countries in Europe, Nepalis also try to come to Luxembourg on student visas by paying agents in Kathmandu up to Rs1.6 million. He warned Nepali youngsters not to get duped, since the cost of living is very high, and it is difficult to pay living costs and school fees by working. With the pandemic, there are also fewer jobs in the service industry. Most are now working on home delivery and take away.   After the interaction with the NRN, the restaurant owner’s mother and father pleaded with Shyam and his colleagues not to press charges against their son. In an audio recording of a telephone conversation that Nepali Times was provided, they can be heard apologising to Shyam about the way their son treated him.  Shyam then asks them why they did not speak up even though they knew that their son was abusing employees. The restaurant has remained closed since the four employees left and filed the complaint. Many Nepalis in Europe have said in interviews that they are not surprised by this story from Luxembourg. The practice of friends and relatives misusing the work permit in restaurants to engage in human trafficking is said to be rife.  But such is the <a href="https://www.nepalitimes.com/latest/half-of-nepalis-lost-jobs-in-past-month/" target="_blank" rel="noopener noreferrer">desperation of young Nepalis for jobs</a> that they are willing to risk all for a decent income to support families back home. Many of them tolerate the <a href="https://www.nepalitimes.com/latest/nepali-guard-beaten-in-malaysia-goes-viral/" target="_blank" rel="noopener noreferrer">abuse and exploitation</a>, and are also not aware of their rights in European countries.  Service Info Traite, which supports victims of human trafficking in Luxembourg says that the investigation and judicial process could take up to three years. It says the restaurant owner using a bank account to get around labour laws to exploit his employees is not new.  Says Frank Wies, who is a lawyer with Luxembourg’s Human Rights Commission: “The police, the courts and the prosecution often lack the necessary sensitivity to recognise and treat human trafficking. I have often seen cases where victims are given a settlement and deported back to their countries.” That is not likely to happen with Shyam and his two colleagues who have work permits. But they have gone to the police in one of the world’s richest countries in the hope that justice will be served, and maybe set an example to other Nepali employers in Europe.   Some names have been changed. Luc Caregari of Reporter in Luxembourg collaborated in this investigation. This report is published simultaneously in English in <a href="https://www.nepalitimes.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com&amp;source=gmail&amp;ust=1629986195528000&amp;usg=AFQjCNHtSVNSRWqbuFfj0xvYbhurabXE-A">Nepali Times</a>, in German in <a href="http://reporter.lu/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://reporter.lu&amp;source=gmail&amp;ust=1629986195528000&amp;usg=AFQjCNHmoJ1q5lxrWAGKSIqhvoLQ1ds7Yw">reporter.lu</a> and in Nepali by <a href="http://onlinekhabar.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://onlinekhabar.com&amp;source=gmail&amp;ust=1629986195528000&amp;usg=AFQjCNExFo0zvEqQtb7MfZDSAfMpQv1MvQ">onlinekhabar.com</a>._________________  <h2>Dark shadow of the European dream</h2> During my reporting trip to Europe in 2019, I visited many Nepali restaurants, interviewed their Nepali owners, and met with employees. I also met government officials and visited police departments. In Luxembourg, it was not easy to get information. After the initial chit chat restaurant workers suddenly went quiet when asked about their working conditions and seemed intimidated. Owners liked to highlight how they were helping fellow Nepalis attain their European dream. I soon found out that the reason was that many of them are victims of physical and mental torture, not aware of their labour rights in Europe because of lack of education or being unable to speak the local language. They trusted the employer who was often a relative or friend from back home.  It was in Luxembourg, the country where the Court of Justice of the European Union is situated, that migrant workers were facing some of the worst violations of their human rights at the hands of fellow Nepalis. Outwardly, the restaurants looked spic and span, the guests were all well-groomed, and seemed to be from the higher echelons of society. The Nepalis all said they were happy. But behind this veneer, I had a nagging feeling that it was all too good to be true.  Sure enough, after some digging, I found a similar story to what I had uncovered in Helsinki earlier. Together with <a href="https://www.nepalitimes.com/here-now/finnish-paper-expose-on-nepali-restaurants/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/finnish-paper-expose-on-nepali-restaurants/&amp;source=gmail&amp;ust=1629986195528000&amp;usg=AFQjCNE_Bi1ton1z4xOyqLRgwTTz1UfqsQ">Helsingin Sanomat</a>, we at Nepali Times had covered the story on human trafficking of Nepali workers by a Nepali restaurant owner in 2019, after which the <a href="https://www.nepalitimes.com/latest/nepali-restaurateurs-fined-in-finland/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepali-restaurateurs-fined-in-finland/&amp;source=gmail&amp;ust=1629986195529000&amp;usg=AFQjCNEsSkybqU-hj0KgZBpma0xalqzAAg">Finnish government took action</a> on the perpetrator.  Like in Finland, some migrants who had entered Luxembourg legally were being abused and denied basic human rights, including the right to decent working hours and salary as per the labour laws of the country, right to safe housing and good food and the right to live with dignity.  The stories of Binod, Shyam, and their colleagues prove that there are Nepalis who themselves rose up the ranks to be restaurant owners who are now preying on vulnerable and desperate people from the home country.  There is no other label for this but human trafficking — anyone who is made to work in a different place than their home country without a fair salary, housing, food and health services are victims of human trafficking, even if they are not subject to physical, verbal, mental and sexual violence.  Shyam and Binod’s Nepali employer has all the legal paperwork for their contract and bank accounts. Still, they were exploited. It is now up to the authorities there to find out how such violations  could occur in a country which has such strict safeguards. <img width="97" height="103" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141132/636cfddb9c7e80680e0a0c09jpeg.jpg" alt="">Namrata Sharma is former chair of the Centre for Investigative Journalism Nepal. This article has been developed with the support of the <a style="font-family: georgia, serif;" href="http://www.money-trail.org/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://www.money-trail.org&amp;source=gmail&amp;ust=1629986195529000&amp;usg=AFQjCNHi58yJp7lYGXJm-u7RxXB37cRrBw">Money Trail Project</a>, <a style="font-family: georgia, serif;" href="https://www.journalismfund.eu/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.journalismfund.eu&amp;source=gmail&amp;ust=1629986195529000&amp;usg=AFQjCNFgo-S83vRTW2_zljHaM5pvCj-uzg">Journalism Fund EU</a>, and <a style="font-family: georgia, serif;" href="http://www.financeuncovered.org/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://www.financeuncovered.org/&amp;source=gmail&amp;ust=1629986195529000&amp;usg=AFQjCNG5Rn24XIEKJ2NEdArVvblHbVcR1A">Finance Uncovered</a>.Read also:<a href="https://www.nepalitimes.com/here-now/in-the-minds-of-nepals-migrant-workers/">In the minds of Nepal’s migrant workers</a>, Upasana Khadka<a href="https://www.nepalitimes.com/opinion/south-asias-migrants-shared-problems-share-solutions/">South Asia’s migrants share problems, share solutions</a>, Upasana Khadka

Nepalis abused by Nepalis in Luxembourg

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

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 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

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;

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