<figure><img width="853" height="552" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d185a9c7e80680e0ac7bfjpeg.jpg" alt=""/><figcaption>From right to left: BP Koirala, his nephew Naresh Koirala, wife Sushila and sister Bunu on the balcony of Naresh’s apartment in Hong Kong in 1980. All photos, courtesy: NARESH KOIRALA</figcaption></figure>20 July 1982. Naresh Koirala vividly remembers the humid afternoon in Hong Kong when the telephone rang. His wife said it was Girija Prasad Koirala (affectionately called Sanobabu in the family).It was four days since <a href="http://archive.nepalitimes.com/news.php?id=6932#.YWe-sC2B2fQ" target="_blank" rel="noopener noreferrer">BP Koirala</a> had been flown to Bangkok for treatment, and Naresh Koirala, BP’s nephew and a geotechnicial engineer based in Hong Kong at the time, was preparing to fly to Bangkok.Girija Koirala’s voice on the phone was sombre: “You don’t have to come now. We are taking Sandaju (BP) back to Nepal as the doctor suggested. There is no hope now.”There was silence on the line, there was not much to say. Naresh Koirala put the receiver down and with a heavy heart walked quietly to the balcony on the 14th floor of his flat overlooking the South China Sea. The ocean shimmered in the afternoon sun.  Two years before, BP and Naresh had met on that same balcony, talking about <a href="https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/" target="_blank" rel="noopener noreferrer">Nepal’s democratic future</a>. BP was returning to Nepal from a conference in Japan and was making a weeklong stopover in Hong Kong. BP’s wife, Sushila, and his sister Bunu were also with him.Naresh remembers that this was after the May 1980 referendum in which the people were asked to choose between continuing with a reformed party-less Panchayat system, or a multi-party system. BP had supported multi-party, but despite the growing pro-democracy movement in the country, his side lost by about 400,000 votes.  It was widely believed that the Panchayat system won because the referendum was rigged. But BP decided to accept the result in spite of the heavy pressure from his own party colleagues like Ganesh Man Singh to reject the outcome.   <figure><img width="200" height="200" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d185d9c7e80680e0ac7c0jpeg.jpg" alt=""><figcaption>Naresh Koirala</figcaption></figure>Naresh Koirala asked BP about this, who explained his reasoning: once you take part in a voting exercise, it is your responsibility to accept the results, whether you win or lose. The days and weeks following the result of the referendum were the most disheartening for BP. Yet, he did not abandon hope nor the struggle to restore democracy in Nepal. He had faith in the Nepali people and their desire for freedom.Naresh Koirala had become a de facto spokesperson for Hong Kong-based media covering the referendum and remembers an Australian friend telling him: “You had a choice of continuing to live in chains or freedom, you chose chains.”Naresh himself had been puzzled by his uncle’s decision to accept the result. On that balcony that day, he broached the touchy subject: perhaps Nepal was not yet ready for a western parliamentary style democracy – maybe only the literate and those with college degrees should be allowed to vote, he asked.BP had a sharp and quick response: “That is exactly how tyrants think. That the common citizen knows nothing while the dictator himself, being all-knowing, holds all authority over the people’s choices and rights. That is exactly the type of thinking that gave rise to Hitlers and Stalins.”https://youtu.be/p2WA1bGOcPcBP Koirala listed three reasons why he accepted the referendum result: first, he could not say without a doubt that even his own multiparty supporters had not cheated. Second, he believed complaints about irregularities should have been raised before the result was announced, not after his side lost. (“What if we had won, how would we have considered the irregularities then?”)  The third reason was that he feared rejecting the referendum verdict could have precipitated a civil war. “I would not be able to live with such a heavy burden,” he told Naresh.Always thinking about the future consequences of his actions and not just the immediate present, <a href="https://www.nepalitimes.com/banner/america-nepal-and-the-royal-coup/" target="_blank" rel="noopener noreferrer">BP Koirala’s politics</a> was heavily guided by his moral ethics and humanist philosophy. That is why to this day, as his Nepali Congress party under the leadership of <a href="https://www.nepalitimes.com/latest/deuba-5/" target="_blank" rel="noopener noreferrer">Sher Bahadur Deuba</a> is questioned about its adherence to democratic ideals, BP Koirala’s name is often invoked. BP’s own son, Shashank, is in the race for party leadership in the upcoming general convention. <figure><figcaption>BP Koirala (with stick) and other Nepali Congress leaders Girija Koirala, Krishna Prasad Bhattarai and Ganesh Man Singh at Kathmandu airport before he left for cancer treatment in 1982.</figcaption></figure>That evening in Hong Kong, Naresh Koirala also asked BP if he had any resentment or a sense of revenge against kings Mahendra and Birendra for the years of persecution and torment. His reply was: “Such feelings take one nowhere near one’s goal, I am certain the kings themselves judge and evaluate their own actions.”BP Koirala’s dramatic political career spanned the end of the 104-year-old Rana regime in 1950 and the restoration of democracy in 1959. He was the first democratically elected prime minister of the country, and held the office for 18 months before being deposed and imprisoned by <a href="https://www.nepalitimes.com/latest/putsch-ek/" target="_blank" rel="noopener noreferrer">King Mahendra in the coup of 15 December 1960</a>. He spent the rest of his life either in prison or exile, and in steadily deteriorating health. <figure><img width="800" height="1084" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18619c7e80680e0ac7c2jpeg.jpg" alt=""><figcaption>BP Koirala at Ocean Park in 1980, when he was already unwell.</figcaption></figure>Even then, he used to say that he endured physical, emotional, and familial troubles because of the love and support of the Nepali people, friends, and family. The hurdles that punctuated his life all came with the job description of politics. In fact, he always said that he was more worried about Sushila, and how to give his wife the life she deserved. Naresh Koirala recalls that during his Hong Kong stopover in 1982, BP, Sushila and Bunu were returning to their car at Ocean Park after sight-seeing, when BP was slightly separated from the group.  Naresh looked back and took a picture of BP lost in thought, hands akimbo. Bunu whispered to Naresh that BP was not well, and he went back to where he was standing. BP waved his hand as if to say not to worry: “It is all right, I will join you.”Naresh Koirala has kept a letter BP wrote to him dated 14 December 1981, asking him not to be despondent. He writes: ‘I have undergone all kinds of hardship and deprivation. I have no sense of suffering.’ He was at the time undergoing chemotherapy in Nepal for throat cancer and had returned from Bombay’s Tata Hospital. Weakened by the disease and chemotherapy, his days were spent in the company of visitors and well-wishers with whom he engaged in lively conversations. He continues in the letter: ‘Do not be despondent, I have lived a full life – very exciting, adventurous and, in my term, a missionary life … The greatest satisfaction in life is the constant awareness that you are constantly being used up by your own mission – I have that satisfaction.’He said his only regret was that he wished that he had spent more time with his children, especially his daughter, Chetana. <img width="621" height="834" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18649c7e80680e0ac7c3jpeg.jpg" alt=""><img width="619" height="831" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18669c7e80680e0ac7c4jpeg.jpg" alt="">BP Koirala’s handwritten letter in English to Naresh Koirala from his hospital bed while undergoing chemotherapy in 1982.That evening in Hong Kong a year earlier, BP confided to Naresh: “If anyone can say when confronting death that they have no regrets and resentment, and that they were dedicated to their work, that is a content and satisfied life.”In July 1982, when Naresh came to Kathmandu, BP was already severely worn out by cancer. BP dedicated his life to uplifting the living standard of Nepalis through genuine democracy, but he feared that he would not live to see his life’s work completed. It is worth pondering what he would have thought of Nepal today, nearly 40 years after his death.In the last four decades, the country saw a People’s Movement that turned the country into a constitutional monarchy, a decade-long war, a massacre of the royal family, an unstable transition to federalism, a secular republican constitution, and the current Nepali Congress-led coalition with the Maoists.The cancer spread, and family members decided to take him abroad for treatment. On the morning of the day of departure, <a href="http://archive.nepalitimes.com/news.php?id=4714%22 %5Cl %22.YWVIWC8RppQ%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">Ganesh Raj Sharma</a> came to BP’s residence at Chabahil with a tape to record his autobiography, as he had been doing for two months.  The interview is yet to be published, Nepali edition of his <a href="http://archive.nepalitimes.com/news.php?id=5205%22 %5Cl %22.YWVFLC8RppQ%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">Atmabrittanta memoir</a> only include photos taken at the time. At one point in the tape, Sharma asks BP, “How do you want the Nepali people to remember you?”  Lying on his bed, surrounded by his niece, Sailaja, and his daughter-in-law, Nona, BP looked tired. Naresh Koirala was taking photographs and remembers thinking that BP must have been weary with the thoughts of the impending travel. <figure><img width="464" height="418" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d18689c7e80680e0ac7c5jpeg.jpg" alt=""><figcaption>A bed-ridden BP Koirala gives his last interview to Ganesh Raj Sharma at his home in Chabahil with niece Shailaja Acharya and sister-in-law Nona Koirala.</figcaption></figure>BP replied in his rasping voice into a small microphone: “I do not think I have done anything great or worth remembering, but if people wish to remember me, I hope they think of me as a decent human being who tried to honestly, sincerely and wholeheartedly to work for the welfare of the people and the nation.”Adapted by Ashish Dhakal from Naresh Koirala's बीपीका आखिरी दिनहरू published in <a href="https://www.himalkhabar.com/category/samaj%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">Himal monthly magazine</a>. Watch <a href="https://www.youtube.com/watch?v=p2WA1bGOcPc&amp;t=21s%22 %5Ct %22_blank" target="_blank" rel="noopener noreferrer">video of Naresh Koirala</a> remembering BP Koirala.For BP’s diary from Sundarijal Jail: read series in Nepali Times, <a href="https://www.nepalitimes.com/nepali-times-search/?q=back+at+sundarijal" target="_blank" rel="noopener noreferrer">Back at Sundarijal</a>.

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Last Days with BP Koirala

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181140/636be61e9c7e80680e08778ajpeg.jpg" alt="" width="720" height="480"/><figcaption>Photo: @KTnepal</figcaption></figure>Loyal readers will remember royal leaders we have covered in these pages over the past two decades. The uneasy transition to constitutional monarchy post-1990, the conflict, the <a href="https://archive.nepalitimes.com/page/royal-massacre-Nepal-15-years-later" target="_blank" rel="noopener noreferrer">palace massacre</a> of 2001, the attempt by King Gyanendra to <a href="http://archive.nepalitimes.com/news.php?id=14835#.X8c51S2B0b1" target="_blank" rel="noopener noreferrer">repeat his father’s coup</a> in 2005, and finally the <a href="https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736" target="_blank" rel="noopener noreferrer">abolition of the monarchy</a> in 2008.History keeps repeating itself in Nepal. And once again, we are coming full circle with street demonstrations in <a href="https://archive.nepalitimes.com/article/nation/saffron-surge-politics,3619" target="_blank" rel="noopener noreferrer">support of a return to monarchy and a Hindu state</a>.It is significant that the rallies are happening in the run-up to the 60th anniversary of King Mahendra’s putsch against Nepal’s first democratically elected government led by Prime Minister B P Koirala on 15 December 1960.The current series of protests began in Butwal last month, and moved around the country with a rally in Kathmandu on Monday. They were organised by disparate groups, with tacit support from the Rastriya Prajatantra Party (RPP).The RPP had not, till now, openly joined the demonstrations. That would have been odd because the demonstrators had called for an end to federalism, and the RPP has one seat in the Federal Parliament. But it has now asked party members to show up for rallies planned for 4 and 5 December in Hetauda and Jhapa, which will see addresses by <a href="http://archive.nepalitimes.com/article/interview/Advantage,277" target="_blank" rel="noopener noreferrer">RPP leaders like Kamal Thapa</a>, Prakash C Lohani and Pashupati Shumsher Rana.There is speculation about why royalists and the Hindu-right have chosen this particular time for a show of force. Obviously, they see an opening in the political space – the ruling Nepal Communist Party (NCP) is <a href="https://www.nepalitimes.com/editorial/outside-looking-in/" target="_blank" rel="noopener noreferrer">mired in endless infighting</a>, and the main opposition Nepali Congress is leaderless and rudderless.The RPP emerged as the fourth-largest party after the UML, NC and the Maoists in the 2013 Constituent Assembly election, and the party leaders quite rightly seem to surmise that since the other parties have had their chance in government multiple times and squandered their mandate, their time has come.RPP rallies this past month have been well-attended, even though the public is not spontaneously joining in on the flag-waving in large numbers, as the organisers claim. Even so, the crowds represent disillusionment with the past two-and-half years of NCP misrule, factionalism, corruption and <a href="https://www.nepalitimes.com/here-now/nepal-ruling-party-feud-affecting-covid-19-response/" target="_blank" rel="noopener noreferrer">poor management of the Covid-19 crisis</a>.The main demands of the demonstrators have been the restoration of the monarchy, and scrapping provisions in the 2015 Constitution that turned Nepal into a federal, <a href="http://archive.nepalitimes.com/news.php?id=3644#.X8c5zi2B0b0" target="_blank" rel="noopener noreferrer">secular republic</a>. Past public opinion polls by this paper have shown that while there is not much mass support for a re-thronement of King Gyanendra, there is a sizeable component of the population that is for Nepal becoming a Hindu state again.In a way, the RPP is testing the waters to see if a <a href="http://archive.nepalitimes.com/blogs/kundadixit/2017/03/22/southerly-wind/" target="_blank" rel="noopener noreferrer">Hindu monarchy</a> can be a viable electoral plank for the next federal and local elections in 2022. Enthused by the unexpected numbers at rallies, the party is now openly leading a street campaign to stoke populist passions at a time when the NCP and NC are both distracted by their internal squabbles. The RPP believes it can end the current anarchy with a stable monarchy.It’s not that the RPP is not faction-ridden like the rest, it has had frequent splits and reunifications over the past 10 years. There has been tension between those who want Nepal to only become a Hindu state but are not as enthusiastic about the monarchy, and others who want both.In September, this led Sunil Thapa, son of five-time Prime Minister Surya Bahadur Thapa, to defect from the RPP to the NC. RPP leader Kamal Thapa has himself been lukewarm towards monarchy, but now favours a ceremonial or constitutional kingship.The other overarching issue is disenchantment with democracy itself, and the argument that a visionary charismatic leader is better than the current cabal under a western-style parliamentary system. Lending force to this argument is the erosion of democratic values under <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/modi-india-politics,872" target="_blank" rel="noopener noreferrer">Prime Minister Modi in India</a>, as well as China’s rising economic and political clout. This coincides with the weakening of the West, which had till recently been giving powerful backing for democracy, press freedom, human rights and secularism.Whatever happens in India has a gravitational pull in Nepal, and the BJP’s Hindu-right ideology could be another factor that has emboldened the RPP. Some rally organisers in Nepal are groups that seem to be offshoots of <a href="https://archive.nepalitimes.com/article/from-nepali-press/After-Adityanath,3617" target="_blank" rel="noopener noreferrer">Hindutva elements across the border</a>. However, this convergence has its limits since at some point India’s Hindu juggernaut would collide with RPP’s ultra-nationalist platform.Even as the ruling NCP’s infighting gets more heated, however, the ruling party may be saved from a split because of the RPP’s activism. There is nothing like a common outside enemy to unite a party. Unwittingly, Kamal Thapa may be giving his old coalition colleague K P Oli some breathing space.

Nepal party reincarnating Hindu monarchy

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110919118/636bed404b0ad905ca02eed3jpeg.jpg" alt="" width="720" height="480"/><figcaption>Photo: @KTnepal</figcaption></figure>Loyal readers will remember royal leaders we have covered in these pages over the past two decades. The uneasy transition to constitutional monarchy post-1990, the conflict, the <a href="https://archive.nepalitimes.com/page/royal-massacre-Nepal-15-years-later" target="_blank" rel="noopener noreferrer">palace massacre</a> of 2001, the attempt by King Gyanendra to <a href="http://archive.nepalitimes.com/news.php?id=14835#.X8c51S2B0b1" target="_blank" rel="noopener noreferrer">repeat his father’s coup</a> in 2005, and finally the <a href="https://archive.nepalitimes.com/article/nation/nepal-from-royal-to-republic,3736" target="_blank" rel="noopener noreferrer">abolition of the monarchy</a> in 2008.History keeps repeating itself in Nepal. And once again, we are coming full circle with street demonstrations in <a href="https://archive.nepalitimes.com/article/nation/saffron-surge-politics,3619" target="_blank" rel="noopener noreferrer">support of a return to monarchy and a Hindu state</a>.It is significant that the rallies are happening in the run-up to the 60th anniversary of King Mahendra’s putsch against Nepal’s first democratically elected government led by Prime Minister B P Koirala on 15 December 1960.The current series of protests began in Butwal last month, and moved around the country with a rally in Kathmandu on Monday. They were organised by disparate groups, with tacit support from the Rastriya Prajatantra Party (RPP).The RPP had not, till now, openly joined the demonstrations. That would have been odd because the demonstrators had called for an end to federalism, and the RPP has one seat in the Federal Parliament. But it has now asked party members to show up for rallies planned for 4 and 5 December in Hetauda and Jhapa, which will see addresses by <a href="http://archive.nepalitimes.com/article/interview/Advantage,277" target="_blank" rel="noopener noreferrer">RPP leaders like Kamal Thapa</a>, Prakash C Lohani and Pashupati Shumsher Rana.There is speculation about why royalists and the Hindu-right have chosen this particular time for a show of force. Obviously, they see an opening in the political space – the ruling Nepal Communist Party (NCP) is <a href="https://www.nepalitimes.com/editorial/outside-looking-in/" target="_blank" rel="noopener noreferrer">mired in endless infighting</a>, and the main opposition Nepali Congress is leaderless and rudderless.The RPP emerged as the fourth-largest party after the UML, NC and the Maoists in the 2013 Constituent Assembly election, and the party leaders quite rightly seem to surmise that since the other parties have had their chance in government multiple times and squandered their mandate, their time has come.RPP rallies this past month have been well-attended, even though the public is not spontaneously joining in on the flag-waving in large numbers, as the organisers claim. Even so, the crowds represent disillusionment with the past two-and-half years of NCP misrule, factionalism, corruption and <a href="https://www.nepalitimes.com/here-now/nepal-ruling-party-feud-affecting-covid-19-response/" target="_blank" rel="noopener noreferrer">poor management of the Covid-19 crisis</a>.The main demands of the demonstrators have been the restoration of the monarchy, and scrapping provisions in the 2015 Constitution that turned Nepal into a federal, <a href="http://archive.nepalitimes.com/news.php?id=3644#.X8c5zi2B0b0" target="_blank" rel="noopener noreferrer">secular republic</a>. Past public opinion polls by this paper have shown that while there is not much mass support for a re-thronement of King Gyanendra, there is a sizeable component of the population that is for Nepal becoming a Hindu state again.In a way, the RPP is testing the waters to see if a <a href="http://archive.nepalitimes.com/blogs/kundadixit/2017/03/22/southerly-wind/" target="_blank" rel="noopener noreferrer">Hindu monarchy</a> can be a viable electoral plank for the next federal and local elections in 2022. Enthused by the unexpected numbers at rallies, the party is now openly leading a street campaign to stoke populist passions at a time when the NCP and NC are both distracted by their internal squabbles. The RPP believes it can end the current anarchy with a stable monarchy.It’s not that the RPP is not faction-ridden like the rest, it has had frequent splits and reunifications over the past 10 years. There has been tension between those who want Nepal to only become a Hindu state but are not as enthusiastic about the monarchy, and others who want both.In September, this led Sunil Thapa, son of five-time Prime Minister Surya Bahadur Thapa, to defect from the RPP to the NC. RPP leader Kamal Thapa has himself been lukewarm towards monarchy, but now favours a ceremonial or constitutional kingship.The other overarching issue is disenchantment with democracy itself, and the argument that a visionary charismatic leader is better than the current cabal under a western-style parliamentary system. Lending force to this argument is the erosion of democratic values under <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/modi-india-politics,872" target="_blank" rel="noopener noreferrer">Prime Minister Modi in India</a>, as well as China’s rising economic and political clout. This coincides with the weakening of the West, which had till recently been giving powerful backing for democracy, press freedom, human rights and secularism.Whatever happens in India has a gravitational pull in Nepal, and the BJP’s Hindu-right ideology could be another factor that has emboldened the RPP. Some rally organisers in Nepal are groups that seem to be offshoots of <a href="https://archive.nepalitimes.com/article/from-nepali-press/After-Adityanath,3617" target="_blank" rel="noopener noreferrer">Hindutva elements across the border</a>. However, this convergence has its limits since at some point India’s Hindu juggernaut would collide with RPP’s ultra-nationalist platform.Even as the ruling NCP’s infighting gets more heated, however, the ruling party may be saved from a split because of the RPP’s activism. There is nothing like a common outside enemy to unite a party. Unwittingly, Kamal Thapa may be giving his old coalition colleague K P Oli some breathing space.

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

Bhutan imprisons social media influencer

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

Too little snow, too much rain

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;

Cash rich, but poor

Prime Minister Sushila Karki is under pressure from GenZ activists and families of the victims to go after officials in the previous government responsible for the<a href="https://nepalitimes.com/news/nepal-s-8-september-massacre"> murders of 19 youth at Parliament on 8 September</a>. But prosecuting the perpetrators and putting them behind bars risks street protests from elements in the previous government.
Former Prime Minister K P Oli is not making it easy for his successor. He is smarting from his downfall and itching for revenge. He is flexing his muscles with rallies, and has unleashed the attack dogs. UML’s newly-formed ‘Youth Volunteer Force’ is led by former Maoist Pushparaj Shrestha, who is accused of multiple murders and kidnappings, and former Bhaktapur MP Mahesh Basnet has been making incendiary remarks on social media on behalf of his boss.
Oli is obviously using the threat of street protests as a deterrent: don’t come after me, or else. Prime Minister Karki cannot risk escalation, otherwise <a href="https://nepalitimes.com/news/march-to-5-march">elections </a>may have to be postponed, or worse, cancelled.&nbsp;
The UML’s partner in the deposed government, the Nepali Congress (NC), is also suffering post-traumatic stress from the shock of the GenZ uprising. Its leader Sher Bahadur Deuba had stepped down as party chief, but has had second thoughts, and seems to want to prove his astrologer right that he can be prime minister seven times. (He has clocked five so far.) Meanwhile, his NC party is imploding with its no-longer-young-turks demanding a party overhaul before elections.
The Maoists are no longer Maoists. Former guerrilla commander and three-time prime minister Pushpa Kamal Dahal has joined up with seven smaller leftist parties to form the Nepali Communist Party by teaming up with two other superannuated former prime ministers, Madhav Kumar Nepal and Jhalnath Khanal. Maoist ideologue Baburam Bhattarai has also shed his Maoist tag and leads a <a href="https://nepalitimes.com/news/party-time">new party</a> (PSP) that vows to ‘uphold the demands of the GenZ’.
The long and short of all this is that Nepal’s legacy parties have not seen the writing on the wall, they have no idea how much public outrage there is against them even after the carnage and conflagration ten weeks ago. And after all this, they are behaving exactly like they did before, sidelining internal rivals within their party, treating politics as powerplay and not about accountability and better governance to lift living standards.
Even a little bit of enlightened self-interest would have allowed them to see how sticking to their guns and not handing over the party to a younger cohort would mean certain ignominious defeat in March. But being gerontocratic authoritarians, they still believe their vote banks are intact, and are betting on the GenZ fervour fading by March.
Twenty years ago in this same space, we wrote: ‘Our politicians are not satisfied with being top dog, they want to be only dog.’ Nothing has changed, history is on rewind in slow motion. To take the canine analogy further: maybe you cannot teach an old dog new tricks.
The best indication of this is the shameful<a href="https://nepalitimes.com/news/election-countdown-4-more-months"> lack of remorse from the former prime minister </a>down the chain of command for what happened starting at noon on 8 September. Even if he did not give the order to shoot, being the head of government he should have taken responsibility for the death of 19 young Nepalis outside Parliament. Resigning that afternoon may have saved the nation from the scale of death and destruction the following day.
The Judicial Commission of Inquiry headed by former justice Gauri Bahadur Karki has another month to submit his findings. K P Oli has said he is not going to any deposition, while his Home Minister Ramesh Lekhak has indicated he will if asked.&nbsp;
Much of the evidence for the killings, arson and looting are in the public domain. There are videos and photographs of the Special Task Force commandos who knelt, took careful aim, and fired at the protesters outside Parliament. Many of the arsonists and looters on 9 September posted selfies and videos on Tiktok and Facebook where they can be easily identified as Maoist, RPP and RSP supporters.
What has angered the GenZ is that while the Home Ministry has been arresting some of those who set fire to Singha Darbar and Parliament, it has not deemed it necessary to track down the shooters. Home Minister Om Aryal says he is waiting for the Judicial Commission report to act.
Last week’s Human Rights Watch (HRW) report, <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">Nepal: Unlawful Use of Force During ‘Gen Z’ Protest</a>, has a detailed timeline of what happened on the two days, corroborated with interviews with eye-witnesses. It found that the STF started shooting within five minutes of the curfew being announced, and most protesters did not hear any warnings. Some 34 protesters were detained inside Parliament, beaten and mentally tortured.
The wounded and dead all had high-velocity gunshot wounds on their heads, chests and abdomen. The arson and looting the following day appears to have been instigated by a mass SMS sent from a fake Myagdi account, after which Discord posts directed protesters to attack specific locations.
Many more questions need to be answered by the Judicial Commission: why did the Army not act sooner, who gave the actual orders to use lethal force with assault rifles, who attacked schools, hotels and businesses, who was behind the inter-party and intra-party attacks on the afternoon of 9 September?&nbsp;
Prime Minister Sushila Karki has to <a href="https://nepalitimes.com/editorial/proper-polls-better-than-no-polls">tread a careful middle path</a> through this minefield till election day.
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