Party flags and banners wave from electric poles, houses and e-rickshaws are festooned with posters. Madhes Province is in the grip of election fever, and in a tour through four of its districts, there is the sense that any efforts by mainstream political parties at reforms have come too little too late. Among the banners, the sky blue of the<a href="https://nepalitimes.com/news/new-vs-new-in-nepal"> RSP is more prominent </a>here this time, and the rallying cry across the country for new and improved leadership is echoed on the ground. “For the people around here, whatever these old leaders are saying has become just noise,” says a lassi shop operator in Janakpur, waving a dismissive hand at flags with the NC’s tree symbol across the street. In Janakpur, UML nominee Raghubir Mahaseth was barred from canvassing door-to-door. Campaign posters of the mainstream parties have been torn from walls and replaced with RSP posters.&nbsp; In Inarwari village of Rautahat in the Madhes heartland, local elected officials whose parties have been merged into the Nepali Communist Party hope to retain enough supporters this election. But not many residents say they would vote for its candidate. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026022005024_a793e3a19cbd536fde50708c4a41b8b0d39a4716c6973feddad889097b655641.jpg" data-media-id="editor_1" data-image-id="2026022005024_a793e3a19cbd536fde50708c4a41b8b0d39a4716c6973feddad889097b655641" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Battleground Tarai NT"> <figcaption>Photos: SHRISTI KARKI</figcaption> </figure>  A first-time voter in Sarlahi’s Haripur is home on a semester break from medical school in Kathmandu, and is waiting excitedly for 5 March. “You can’t really say out loud whom you’re voting for around here,” he says, as he mimes ringing a bell. “It is time for someone new to be in-charge." In the highway town of Bardibas, an elderly teashop owner says that all she hears are calls for घण्टी, the RSP’s bell symbol. “After all, bells are rung in the house of gods,” she says. “It seems like the right choice.” The RSP wave sweeping the nation after the GenZ movement is seen in Madhes, and the PR ballots might reflect that, notes political analyst Tula Narayan Shah.&nbsp; “But the socio-cultural networks, organisational setup, and legacy of democratic movement of traditional parties might still give them a fighting chance on the first past the post ballot,” he says. &nbsp;“The door-to-door campaign style of candidates has always been more prominent in Madhes than elsewhere.”&nbsp; Villages like Dhankaul in Sarlahi-4 where <a href="https://nepalitimes.com/news/grand-split-in-nepal-s-grand-old-party">Gagan Thapa</a> of the Nepali Congress (NC) is running against incumbent Amresh Singh, is an NC stronghold. Singh won the election here twice before in 2013 and 2017 when he was an NC leader, and still had goodwill among NC voters when he ran and won as an independent during the 2022 election. “I voted for him twice before when he was in the NC, but he did not do anything for this or other villages. Once he is elected, he has not set foot here,” says Rajiv Yadav, a voter in Dhanakul. “The RSP will get more votes here than last time, but Gagan is sure to win. This village will vote for him.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026022005024_26691bb5a37edf705cc197a632d0bf032f984079a838d31bcd943bc0b9c97ff3.jpg" data-media-id="editor_3" data-image-id="2026022005024_26691bb5a37edf705cc197a632d0bf032f984079a838d31bcd943bc0b9c97ff3" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Battleground Tarai NT"> </figure>  Madhes is in the spotlight this election because two prime ministerial candidates have focused their attention in the region. Balen Shah began his campaign in Janakpur (main picture, left) in January as a ‘Son of Madhes’, and Gagan Thapa chose Sarlahi-4 as his constituency over Kathmandu-4, from where he has been elected since 2013.&nbsp; The Madhes has always been the battleground for Nepal’s electoral politics, and candidates from here, like Krishna Prasad Bhattarai from Parsa, Pushpa Kamal Dahal from Siraha, Jhala Nath Khanal from Sarlahi, and Madhav Kumar Nepal from Rautahat, have all been prime ministers. Despite electing politicians to high office in Kathmandu, districts of Madhes have consistently ranked low in development and service delivery indicators, especially in basic healthcare and education. Socio-economic inequalities stemming from a lack of opportunities has also meant that Madhes districts have the highest rate of out-migration in the country.&nbsp; What is different this time is that the people of the province have a Madhesi prime ministerial candidate who will represent them in national politics, and the main competition ultimately will be between the NC and RSP prime ministerial candidates. Interestingly, voters seem to be looking beyond Madhes-based parties who have historically campaigned on identity and federalism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026022005024_1b5c1134fb02ded72a12221200918df584b0cd003139bb2be44951efe9a65bf1.jpg" data-media-id="editor_4" data-image-id="2026022005024_1b5c1134fb02ded72a12221200918df584b0cd003139bb2be44951efe9a65bf1" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Battleground Tarai NT"> </figure>  “Leaders of Madhes parties have glorified their struggle for votes but failed to perform on good governance at local and provincial levels,” explains Tula Narayan Shah. “Now, Balen has become a PM candidate as a face of the region, and as someone who will deliver based on his work as Kathmandu mayor.” If the RSP wins, it will be governing in the absence of provincial leadership that would play a crucial mediatory role between Kathmandu and local units. On Wednesday, RSP’s Madhes province chair Mamta Sharma resigned from the party and joined the NC. There is also some underlying tension between RSP cadre loyal to Balen Shah and Rabi Lamichhane. “It is not prudent to predict who will win the election and whether parties will deliver on promises,” says Tula Narayan Shah. “But win or lose, there is little basis at this time to believe that the RSP will be committed to making the federal system and provinces more functional.” Voters here in the heart of the federalism movement, however, are willing to give the RSP the benefit of the doubt. &nbsp;Resident Brahma Dev in Janakpur told us: &nbsp;“The RSP, like parties that came before them, deserve a chance to prove their leadership in the next five years. If they do not deliver, we can always vote them out next time.”&nbsp; On Wednesday, NC leaders unveiled the party’s 10-point election manifesto at a large rally in Janakpur (main picture, right). Gagan Thapa began by addressing a cheering crowd in Maithili, and said the NC was reformed, adding:&nbsp; “The GenZ did not reject us, they told us to change our ways.” Also on Wednesday 800km away at the other end of the country in Dhangadi, Balen Shah, in a speech that lasted just three minutes, he said: “Don’t vote for us, give us work to do.”&nbsp;

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Battleground Tarai

Nepal’s poverty rate may have gone down, but hunger still stalks the land.&nbsp;
Here in the southern plains, paddy fields are parched due to a delayed monsoon, wells have gone dry and half-way through the rainy season only 40% of rice fields have been planted.&nbsp;
The eight districts of Madhes Province produce a quarter of Nepal’s rice, and the projected harvest shortfall this year has led to fears of inflation exacerbated by India’s ban on rice and wheat exports.
Covid, climate change and conflict have created a perfect storm of food insecurity. Record heat waves, droughts and storms have hit the northern hemisphere, and Russia exiting the UN-brokered grain export deal last week &nbsp;made the global fuel, food and fertiliser situation even more precarious.
Nepal’s carbon emission is negligible and the country is not involved in the Russo-Ukraine war, yet both crises have exacerbated food insecurity. And here in the Tarai, it is the most vulnerable families who are most affected.&nbsp;
Read also: <a href="https://nepalitimes.com/here-now/the-karnali-s-hunger-emergency">The Karnali’s hunger emergency</a>, Anita Bhetwal
“Who listens to us small people?” asks Nathuni Yadav in Dhanusa district near the Indian border, gesturing at yellowing seedlings on her cracked and sunbaked paddy patch that should be filled with water this time of year.&nbsp;
Better-off farmers have diesel pumps, but even these have gone dry because the water table has fallen on both sides of the border. It is not just the late monsoon and deficient rainfall that is to blame, over extraction of ground water and rampant quarrying and denudation of the Chure watershed are &nbsp;affecting the entire Nepal Tarai.
The northern areas of the district near the East-West Highway can still pump water, but farmers who depend on rain-fed agriculture have been badly hit.&nbsp;
Even border cities like Birganj with a population of 300,000 do not have water as hand pumps go dry, and there are reports of similar shortages in cities across the border in the Indian state of Bihar. The rain when it does fall, comes in brief torrents and not the usual longer light drizzles.
This year’s water crisis in the Tarai did not happen suddenly, there have been signs over previous years. Haphazard infrastructure, disturbance of the watershed and deficient rainfall reduced recharge of ground water, while over-extraction through deep drilling in Bihar and Nepal sucked up the remaining ground water.&nbsp;
Read also: <a href="https://www.nepalitimes.com/latest/nepal-needs-to-plan-for-plenty-and-scarcity-of-water">Nepal needs to plan for plenty and scarcity of water</a>, Nepali Times &nbsp;
When Ram Baran Yadav went on a state visit to India as president, he had warned Indian leaders including the leaders of Bihar and Uttar Pradesh state that the destruction of the Chure would affect the Indo-Gangetic plains in Nepal and India.&nbsp;
This was the first time that a Nepali leader had raised this issue at such a high level in India. But neither has the Nepal government stopped stripping the Chure, nor has India curbed deep drilling for water. The Chure is a gigantic sponge that soaks monsoon water into the ground, but the little rain that falls now runs off its denuded slopes and the pumps lift what water is remaining underground.&nbsp;
The climate crisis is a water crisis, and access to water used to be determined by who bore deep wells for water. But even those with pumps do not have water, and the worst hit are the poorest families like Nathuni Yadav.
Nearly 53% of Nepal’s population now lives in the Tarai, which is also the country’s grain basket. The water crisis will affect food supply, which in turn will increase the push factor for migration. Dhanusha is already the district with the highest rate of out-migration and water scarcity will feed the vicious cycle – lack of food forces people to migrate, and because they migrate there is no one to grow food.&nbsp;
Bishow Parajuli, who till recently was the World Food Programme (WFP) representative in India, says food insuecurity needs short-, medium-, and long-term interventions.
Read also: <a href="https://www.nepalitimes.com/here-now/nepal-sets-ambitious-target-for-food-sufficiency">Nepal sets ambitious target for food sufficiency</a>, Ramesh Kumar
He says, “We need emergency response, especially to reach food to the most vulnerable populations. In the medium term we have to control food price inflation due to the Ukraine crisis and the Indian ban on exports, and in the longer term Nepal has no option but to re-farm fallow land, expand irrigation and increase agriculture productivity.”
Prime Minister Pushpa Kamal Dahal, who addressed the World Food Summit in Rome this week said all the right things about meeting the UN’s Sustainable Development Goal (SDG) to eliminate hunger by 2030.
But at the rate Nepal is going, zero hunger looks unattainable. Even without this year’s crisis, the proportion of children with wasting remained stalled at 12%, with Madhes and Karnali Province showing an even higher proportion of undernourished children at 30%.
The proportion of stunted children has dropped from 57% twenty years ago to 30%, but it is till double the SDG target of 15%.
Read also: <a href="https://www.nepalitimes.com/news/the-pandemic-of-hunger">The pandemic of hunger</a>

Chandra Kishore

Grain drain

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/6372211a9c7e80680e0c029djpeg.jpg" alt="" width="1500" height="1125"/><figcaption>All photos: KASHISH DAS SHRESTHA</figcaption></figure>In a landmark decision last week, the Supreme Court annulled the <a href="https://www.nepalitimes.com/here-now/building-nijgad-come-what-may/" target="_blank" rel="noopener noreferrer">government’s dubious plan to build an airport</a> by destroying Nijgad’s primary forest.The written verdict is still due, but the ruling has opened a path to plot a green runway on which inter-generational equity, and new economic opportunities can take flight in Madhes Province.Read also: <a href="https://www.nepalitimes.com/editorial/aborted-landing-in-nijgad/" target="_blank" rel="noopener noreferrer">Aborted landing in Nijgad</a>, EditorialHere is the path forward:1. RelocationTangiya Basti spreads over 1,000-hectares in Nijgad’s old-growth forest where families were temporarily settled in 1974-75. Its residents now span four generations, and are still waiting for the government to resettle them. In this wait, the settlement had transitioned from subsistence farming to full-fledged commercial agriculture. Some of the young men from here have become <a href="https://www.nepalitimes.com/here-now/dead-end-of-the-korean-dream/" target="_blank" rel="noopener noreferrer">migrant workers in Korea</a>. But the nearly 1,500 households, with a population of over 7,000, are still considered squatters on land that was going to be an airport.Residents felt the airport project was their ticket out, and now think the Supreme Court's decision means the government may not feel the need to finally relocate them.However, Tangiya Basti was settled 20 years before the first plan to locate the airport here was even made in 1995. The promise of resettlement was never tied to this, or any other project. Cancellation of the airport should therefore have no bearing on their resettlement. It would simply be the right thing to do, and in an election year it may even be a politically prudent one.https://youtu.be/E0kV65lvbYs2. Reforestation Once Tangiya Basti’s inhabitants are resettled, the land can be annexed back into the larger <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/" target="_blank" rel="noopener noreferrer">Nijgad forest</a> that it was always a part of. This should be a planned undertaking,  allowing the government and its conservation partners to address issues like protection of the wildlife corridors, the need for watering holes and wetlands, as well as mounds for flood protection.Nepal has signed the World Bank’s Forest Carbon Partnership Facility, unlocking up to $45 million to support the expansion of carbon sinks by increasing forest cover. Turning Tangiya Basti back into forest may also give Nepal the chance to tap into that fund before it expires in 2025, while exploring similar financial benefits from other emission reduction programs.  3. ConstructionThere should then be a parallel program to design and build multiple <a href="https://www.nepalitimes.com/banner/underpasses-to-reduce-roadkill-in-nepal/" target="_blank" rel="noopener noreferrer">wildlife crossings</a> over and under the East-West Highway that goes through Nijgad forest. A multi-year construction project of this kind would give the local economy a boost and reduce road kill.Habitat fragmentation has become one of the leading causes of wildlife deaths along Nepal’s highways, and includes endangered species we have worked so hard to protect.Bordering Parsa National Park and the Chure and Mahabharat Ranges, Nijgad is home to tigers, rhinos, pangolins, and an important regional migratory corridor for wild elephants and other animals. The <a href="https://www.nepalitimes.com/latest/infrastructure-for-wildlife-in-nepal/" target="_blank" rel="noopener noreferrer">wildlife crossings</a> can serve as safe bio-corridors as well as a model for other conservation areas in the country.Establishing a wildlife conservation and ecology research centre would also allow domestic and international conservationists and scholars to engage in Nijgad for fieldwork, as well as bring additional jobs and resources to locals.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/6372211f9c7e80680e0c029ejpeg.jpg" alt="" width="1500" height="1125"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221239c7e80680e0c029fjpeg.jpg" alt="" width="1127" height="756"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221259c7e80680e0c02a0jpeg.jpg" alt="" width="1500" height="1000"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221299c7e80680e0c02a1jpeg.jpg" alt="" width="1500" height="999">4. Designation The case can be made that Nijgad already qualifies to be a national park since it shares the same ecological qualities as adjoining Parsa. In fact, without one, it would be difficult to protect what remains of the forest. The case for a national park will be bolstered with the resettlement of Tangiya Basti, and building <a href="https://www.nepalitimes.com/opinion/nepal-needs-wildlife-friendly-highways/" target="_blank" rel="noopener noreferrer">wildlife crossings</a>.Rhino deaths due to poaching have gone down in Nepal, but their deaths due to territorial fights have been increasing at an alarming rate. Rhino calves have also come under fatal attacks from the <a href="https://www.nepalitimes.com/banner/its-a-jungle-out-there/" target="_blank" rel="noopener noreferrer">growing tiger population</a>.Territorial fights in crowded national parks, habitat fragmentation and toxic water sources are now among the leading causes of ‘natural’ deaths of endangered wildlife in Nepal. A Nijgad National Park with translocated rhinos would offer much needed new protection and territory for <a href="https://www.nepalitimes.com/banner/in-conservation-nepal-is-not-out-of-the-woods-yet/" target="_blank" rel="noopener noreferrer">Nepal’s conservation efforts</a> and sustainable development.5. TourismThe controversy around the airport has worked to advertise Nijgad’s rich biodiversity, creating a growing interest among urban youth to explore the area. With a planned effort that involves reforestation, building of wildlife crossings, and a national park designation, Nijgad can easily become a popular eco-tourism destination that is as easily accessible as Chitwan through the Kathmandu-Tarai expressway.Because the area is not yet prepared for this, we have a chance to build proper eco-tourism infrastructure and a service sector. The rise of <a href="https://www.nepalitimes.com/here-now/pandemic-impact-on-aviation-may-kill-nijgad/" target="_blank" rel="noopener noreferrer">Nijgad</a> as a tourism destination would also have positive implications for the local real estate market, a matter of particular interest to the proponents of the airport project.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/6372212c9c7e80680e0c02a2jpeg.jpg" alt="" width="1500" height="1000"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221309c7e80680e0c02a3jpeg.jpg" alt="" width="1500" height="1001"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221339c7e80680e0c02a4jpeg.jpg" alt="" width="1500" height="1001"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111412114/637221379c7e80680e0c02a5jpeg.jpg" alt="" width="1500" height="1000">6. FundingMaking funds available to get work started should not be a problem. The government recently allocated a large budget for Nijgad airport. Since the airport will now not be built, those funds can surely help get work started to turn Nijgad into a national park, and put it firmly on the tourist map.Development partners have already expressed <a href="https://www.nepalitimes.com/latest/importance-of-ecosystems-for-people-and-the-planet/" target="_blank" rel="noopener noreferrer">keen interest to assist in this</a>. Exactly a year ago on 3 June 2021, the Asian Development Bank, Australian Embassy, British Embassy, European Union, Finnish Embassy, French Embassy, German Embassy, United Nations and World Bank in Nepal issued a joint statement reiterating their commitment of up to $7.4 billion for Nepal’s ‘Green, Resilient and Inclusive Development’.They raised pointed questions about the <a href="https://www.nepalitimes.com/here-now/economy-ecology-of-nijgad-airport/" target="_blank" rel="noopener noreferrer">Nijgad airport plan</a>, and wrote: ‘Forests are also the source of valuable natural resources and wildlife that support job creation and economic development in the forestry and tourism sectors.’Thanks to the Supreme Court order, Madhes Province has an opportunity to pursue a path towards green growth, and set a new benchmark for Nepal’s development, conservation and economic growth.Kashish Das Shrestha is a 2019 National Geographic Explorer and a sustainable development policy advocate. A version of this op-ed was presented to the Environment Minister Ramsahay Prasad Yadav this week by the youth environment group HarinNepal.

Nijgad’s green runway

Samsung Nepal has opened pre-orders for the Galaxy A57 5G and A37 5G. Both phones run Samsung’s One UI 8.5, featuring AI capabilities like voice transcription, Circle to Search, and photo editing. They feature a 50MP triple-camera system, a Super AMOLED display, and six years of OS and security updates.

Galaxy A series

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Creating a firm future for Nepal

Know your Ministers

Prime Minister Balendra Shah on Wednesday broke tradition and met with 17 foreign envoys collectively, a move that was a notable departure from how his predecessors operated.&nbsp;
Shah had already set himself apart by talking less, listening more, and delegating to trusted friends. But by meeting all ambassadors at one go in the presence of the Foreign Ministry, he signalled a paradigm shift in how he wants Nepal to be seen: no longer just balancing India and China, but as a country confident about its <a href="https://nepalitimes.com/opinion/guest-editorial/tripolar-contestation-over-nepal">strategic importance and place in the world</a>.
In just two weeks, the <a href="https://nepalitimes.com/news/rsp-dos-and-don-ts">RSP has sprung into action </a>on multiple fronts to implement its ambitious 100-point, 100-days action plan. It has taken short-term measures to mitigate the impact of the Gulf war, as well as medium- and long- term measures to streamline the bureaucracy. A few high-profile figures have been made examples of to drive the message home.
Earlier this week, the government recalled six politically appointed ambassadors, the most notable being long-serving Shankar Sharma from New Delhi. The Kathmandu District Court issued arrest warrants against former prime minister Sher Bahadur Deuba and his former foreign minister wife Arzu Rana on charges of money laundering and corruption.
Each ministry has been trying to clean up the accumulated rot from the past three decades: regulatory overhaul of microfinance, education, health and service delivery.&nbsp;
These actions widely disseminated campaign-style on YouTube and TikTok have made most Nepalis hopeful that the party they installed in power means business.
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BACKLASH
But such attempts to overhaul a long-entrenched political culture were bound to face backlash. In their impatience and enthusiasm to get things done, some of Prime Minister Shah’s ministers have over-reached.
It was common knowledge that government-paid advertising in the mainstream press was kickback-driven, but the PMO’s directive that official notices be published or broadcast only on state-run media has been denounced — especially as the media industry struggles to stay afloat.
More serious are some recent appointments by ministers of relatives and figures closely associated with the RSP to key positions. This has rankled because this party built its political plank on ending nepotism and graft.&nbsp;
News that Home Minister Sudan Gurung allegedly had not paid rent on leased land, which illegally encroached on the lake in Pokhara did not help. &nbsp;
Prime Minister Shah himself has come under scrutiny for appointing a kitchen cabinet full of male buddies from his time as Kathmandu mayor. To douse criticism he brought in as adviser investigative journalist Deepa Dahal, who has exposed corruption in high places of the previous coalitions.&nbsp;
Shah’s appointment of another political adviser Asim Shah to the head Constitution Amendment Task Force, is also seen as problematic. He is a filmmaker and former lawmaker, but does not have a background in constitutional law.&nbsp;
Even more controversial is the Cabinet’s decision to appoint RSP Chair Rabi Lamichhane’s legal counsel, Narayan Kandel, as Attorney General. Kandel used to be a UK permanent resident, and does not have as much experience practicing law in Nepal.&nbsp;
Kandel’s appointment drew flak and raised eyebrows, and with the pending legal cases against Lamichhane this appointment represents a flagrant conflict of interest.
Health Minister Nisha Mehta was also accused of favouritism after reappointing Junu Shrestha, wife of Labour Minister Dipak Kumar Shah, as member of the Health Insurance Board which had earlier suspended her. The Labour Minister’s rambling rant at the Board’s meeting on Tuesday has not helped the RSP’s image.&nbsp;
(UPDATE: On Thursday, Prime Minister Shah sacked the Labour Minister after the RSP found him in breach of the party's code of conduct and discipline. He served 14 days in the Cabinet, one of the shortest tenures for a minister in Nepal )
It is hard to know what <a href="https://nepalitimes.com/news/ball-in-balen-s-court">Balendra Shah is thinking</a>, and how Rabi Lamichhane is going to justify some of these moves. After all, making politics, governance, and bureaucracy a meritocracy has been the core tenet of the RSP, and it risks alienating its mainly youth base if these missteps persist.
But at least for now, most RSP supporters seem to be giving the party the benefit of doubt.