<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721cac9c7e80680e0bd4a3jpeg.jpg" alt="" width="1280" height="1276"/><figcaption>Ajay Shrestha in his cricket jersey during happier times. All photos: courtesy ANIL SHRESTHA</figcaption></figure>I left for the UAE six years ago. It was a struggle to adjust to the new environment, but the country gave someone like me who had arrived with no experience a platform to work hard, and make a decent living.I started as a crew member at a restaurant, and by the end of six years, was working as an assistant manager making five times more than my starting salary.I did not have any reason to leave the UAE given my job security and attractive benefits, but my younger brother, Ajay, who was based in Malta wanted me to join him there.“Europe is Europe,” he used to say.My only motivation to go there was to be with my brother. Why live in two separate places when there is opportunity to be together to support each other, to celebrate festivals together, and create some semblance of a ‘home? My mother also loved the idea of her sons being together.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721caf9c7e80680e0bd4a4jpeg.jpg" alt="" width="1600" height="1200"><figcaption> </figcaption></figure>He helped me find a job in Malta, also in the restaurant line. The salary was not all that different from what I was making in the UAE.When I joined my brother in Malta on 31 January  this year,  it had been three years since I had last seen him. We were thrilled. What I did not know then was that it would be a reunion that would change the trajectory of our lives.In addition to the excitement to see me, he was also looking forward to his trip back to Nepal on 1 March. He was already in holiday mode, excited to be back for the first time since he got here.A cricket fanatic, he had set aside a 1,900 euro fund to organise a game back home through a cricket academy in Bardia that a common friend had set up.Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-1/">Diaspora Diaries 1</a>, Nepali Times<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721cb39c7e80680e0bd4a5jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>A mother’s boy, he was trying to decide between different mobile sets to buy for her, and also for an uncle.He worked as a bike delivery rider in Malta and in the morning of 16 February, he was scrolling through his phone when he got a delivery request and decided to take it up. Every extra euro would help, he said.I was playing a game on my phone and barely paid attention as he left the apartment. He later called from below the apartment to ask me to pass his power bank that he had left. As a delivery boy, it was an essential he could not afford to leave behind.He called again me to tell me to throw him his purse from the balcony. He caught it with a grin. Sloppy boy, I thought.A while later, I got a call from a fellow Nepali. He told me to go to the hospital because Ajay had met with an accident, about three kilometers from our apartment.I could feel my soul leave my body when I heard the news as I rushed to the hospital. As soon as I arrived, I was told by the doctor that Ajay was no more.The fact that he had come back twice to take his phone charger and wallet still haunts me. He had died on the spot when a truck hit him. Perhaps if he had not been delayed by those couple of minutes due to his absentmindedness, he would still be alive. The difference a few split seconds would have made.Needless to say, I was shocked beyond belief. How could this have happened? My eyes hurt to see my brother as he lay there in the hospital, as if we was in peaceful sleep. He looked normal and was still warm.Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-2/" target="_blank" rel="noopener noreferrer">Diaspora Diaries 2</a>, Nepali TimesMy mother back in Nepal had to be rushed to hospital as she collapsed after hearing the news. This added to my grief and worry.In that abyss, I felt numb, unable to process what was going on. It had been only 17 days since I had arrived in Malta. Everything was a blur.Back in my brother’s apartment as I wept, I could not comprehend what was going on and what was next. I had to figure out how to take my brother’s body home. I did not know anyone there, or how the system worked.Friends came to the apartment to pay their respects. They were all in tears, and hugged me, brought me food and made sure someone was always at my side. I have no idea who these people were, but they were all Ajay’s friends and they were there for us, and to support me.Growing up, I was always the quiet one, and Ajay the more outgoing sibling. I used to be known as ‘Ajay’s Dai’ rather than Anil. Even in his death, I was ‘Ajay’s Dai’, surrounded by his friends, in an unfamiliar country, among unfamiliar people.It was also evident how much goodwill Ajay had garnered in Malta. I had at least five Nepalis who came to me to repay money they had borrowed from Ajay. They didn’t have to but they did. They were in tears.Many recounted memories of how he had helped them when they were struggling financially. In the following weeks, there were football games organised in his memory with moments of silence in his tribute. My brother, he had left a mark among many.Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-3/">Diaspora Diaries 3</a>, Nepali Times<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721cb79c7e80680e0bd4a6jpeg.jpg" alt="" width="720" height="960"><figcaption> </figcaption></figure>These stories of death in a foreign land are common. It is a familiar sight for us Nepalis to see coffins arrive at Kathmandu airport. Most of them are on flights from the Gulf, where I spent six years.But this was the first fatality among Nepalis in Malta. Even the Prime Minister of Malta and the Mayor reached out to me and extended their condolences. The Nepali community there was stunned. Nepalis and Maltese friends crowdfunded for his repatriation, to support our family, and raised nearly Rs2.8 million with which we could send the body to Nepal.How do you describe the feeling of being on a plane with your brother in the cargo hold in a box? How can you talk about bringing a younger sibling’s body home to your parents?<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721cb99c7e80680e0bd4a7jpeg.jpg" alt="" width="720" height="960"><figcaption> </figcaption></figure>On the flight back home, I kept thinking about how my brother had brought me to Malta just weeks before he died. It was as if he had wanted his elder brother to take care of him, and bring him home.Had I been in the UAE, there was no way I would have been able to go to Malta to do that. The longer the wait, the more difficult it would have been for my parents, since seeing my brother’s body and completing the final rites at least provided them a sense of closure.Here in Bardia, the days are passing slowly. My priority is to take care of my parents who are distraught. My mother is almost  unrecognisable with shock and loss of appetite. She has no more tears left to shed.Things were just starting to look up for us. Three months ago, we bought our father a scooter so he could get around more easily than in his bicycle.My brother and I had just moved in together in Malta, and this happened. Nothing makes sense. I now want to find ways to keep my brother’s memories alive, and to fulfill his dreams.We organised the cricket tournament in his memory, and the finals were on Monday. A team from Banke district won.Read also:<a href="https://www.nepalitimes.com/here-now/diaspora-diaries-4/"> Diaspora Diaries 4</a>, Nepali Times<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721cbc9c7e80680e0bd4a8jpeg.jpg" alt="" width="750" height="403"><figcaption> </figcaption></figure>Both us brothers were very fond of cricket growing up, perhaps because India is right across the border. But back then we could not even afford the basic equipment.We played with a tennis ball, and even that was expensive. We made our own bats. My brother had wanted to make sure that children of our home village would not have to suffer the same deprivation.Just a month before his death, my brother had sent another Rs15,000 to the sports academy to organise the tournament.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721cbf9c7e80680e0bd4a9jpeg.jpg" alt="" width="1280" height="958"><figcaption> </figcaption></figure>On the opening day, I wore one of his favorite jerseys that said ‘AJ’ on the back. It is the little things that remind me of him, and make me suddenly burst into tears without warning. There are many memories of our childhood that make me feel simultaneously close to him, while reminding me of the cruel reality that he is not around anymore, and he will never be.The jersey is among his possessions that I brought back with me from Malta, leaving nothing behind in his apartment that I gave up before returning.I don’t think we will ever learn to move on from this loss. But perhaps one day we will learn to live with it.Read also: <a href="https://www.nepalitimes.com/here-now/the-qatar-job-mirage/">The Qatar job mirage</a>, Nepali TimesTranslated from Nepali. Diaspora Diaries is a regular column in Nepali Times providing a platform for Nepalis to share their experiences of living, working, studying abroad. Authentic and original entries can be sent to <a href="mailto:editors@nepalitimes.com" target="_blank" rel="noopener noreferrer">editors@nepalitimes.com</a> with Diaspora Diaries in the subject line.

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Fate joins, then separates, siblings

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be27f9c7e80680e083eafjpeg.jpg" alt="" width="595" height="501"/><figcaption>Illustration: SAMBHRANT BISTA</figcaption></figure>Nepali emigration conjures up images of migrant workers at construction sites in the Gulf or security guards in Malaysia. Falling between the cracks are the increasing numbers of Nepalis now in Europe.The volume of Nepalis going to Europe pales in comparison to migrant workers headed to West Asia or Malaysia annually, but their presence has been highlighted during the <a href="https://www.nepalitimes.com/latest/nepali-diaspora-hit-by-covid-surge/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepali-diaspora-hit-by-covid-surge/&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNG_IuXzwm4IQtnSt0ZZ_O7yzT4E-w">Covid-19 pandemic when many Nepalis fell sick.</a>Romania, for instance, issued 29,800 work permits to foreign workers in 2019, of these <a href="http://igi.mai.gov.ro/ro/comunicat/evaluarea-activit%C4%83%C8%9Bii-poli%C8%9Bi%C8%99tilor-inspectoratului-general-pentru-imigr%C4%83ri-%C3%AEn-anul-2019" data-saferedirecturl="https://www.google.com/url?q=http://igi.mai.gov.ro/ro/comunicat/evaluarea-activit%25C4%2583%25C8%259Bii-poli%25C8%259Bi%25C8%2599tilor-inspectoratului-general-pentru-imigr%25C4%2583ri-%25C3%25AEn-anul-2019&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNHo3EEdFx0D72F_IUyvC6hhsutQ-Q">4,324 were to Nepali workers</a> -- the second highest nationality after Vietnam.Similarly, <a href="https://wbj.pl/more-asian-workers-in-poland/post/126282" data-saferedirecturl="https://www.google.com/url?q=https://wbj.pl/more-asian-workers-in-poland/post/126282&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNH90CN2BaZ6jXnfdV3MmvpL9h9EAQ">in Poland</a>, of the 69,000 work permits issued to Asian workers, 9,200 were granted to Nepalis who now make up the highest nationality. In 2019, the 2,273 Nepalis officially residing in Malta made them the fourth largest non-EU nationality on the Mediterranean island.The Honorary Consul General of Nepal in Romania, Nawa Raj Pokharel, is one of the 500 plus Nepalis who has tested positive after the onset of the pandemic. He spoke to Nepali Times from his hospital bed on Tuesday.“Workers in restaurants have been vulnerable to the economic fallout, but those working in warehousing, agriculture and construction have continued their work,” he said. “I have helped place workers who lost their jobs because of business shut-down or wanted to change employment with new employers. Unless workers are undocumented, they are eligible for unemployment benefits.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2819c7e80680e083eb0jpeg.jpg" alt="" width="640" height="1375"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2839c7e80680e083eb1jpeg.jpg" alt="" width="640" height="1375">A Nepali migrant worker in a park in Romania this summer, and a Nepali worker in a subway in Bucharest. In 2019, Romania issued 4,324 work permits to Nepalis, many of whom are now sick because of Covid-19.A Nepali who spent two years in Qatar paid a recruiter Rs550,000 for a construction job in Romania. Although he was promised a monthly salary of up to Rs150,000, he barely makes Rs60,000 as a steel fixer at a construction site in Bucharest. Recently, he tested positive for Covid-19, and his medical expenses are being borne by his employer.“At first, I thought it was just regular flu as my job requires me to work outside in the cold,” he told us on the phone. “Manpower companies in Nepal exaggerate earnings and made us falsely believe that access to other Western European countries will be easy once we are here.”Another Nepali worker paid Rs450,000 for a job placement in Romania, and says he could not afford the recruitment cost for other Schengen countries which was up to four times higher. Although he is getting unemployment benefits, he is worried he cannot pay back the loan he took to pay recruitment cost.He says: “My eventual dream is to make it to a Schengen country.”Consul general Pokharel, however, says he advises Nepalis here not to try to cross over into Schengen area no matter how much agents try to lure them. “About a dozen Nepalis have been deported after they attempted to cross over on their way to Portugal, three of them recently,” he says. “They will be banned from entering any European country for the next five years. It is not worth it.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2869c7e80680e083eb2jpeg.jpg" alt="" width="1175" height="601">In Poland, Rita works at a call centre servicing customers in the UK and US and is lucky to be able to work from home through the pandemic.“I make less than what I made while working at a restaurant,” she says. “But I am significantly happier because the 12-14 hour shifts were physically taxing. Now, I feel more relaxed and am excited about my work.”Ramesh works in a meatpacking company in Poland which closed down for three months this year during the pandemic. Luckily, he was provided 2,080 złoty ($555) a month to pay for rent and food. He says: “That is when I saw the merit in paying regular taxes and the benefits of having strong social protection.”Most European countries are going through a second wave this winter, and cases have exceeded 16 million with 371,419 deaths. So far, Poland has seen 876,333 cases, Romania  422,852 cases, Malta 9,137, and Portugal 264,802 cases.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be2889c7e80680e083eb3jpeg.jpg" alt="" width="1022" height="722">Unlike Romania, Poland is a transit country for many Nepalis who are headed into western Europe – most of them to Portugal given foreign workers can get residence and citizenship after five years. In fact, all roads in Europe seem to lead to Portugal, where there are now 16,849 Nepalis residing legally.Twenty-year-old Hari is one of them, and he also spent nine months working as a mason in Poland first before moving on. His roommate, Manab, 23 year old Nepali paid Rs1.5 million to a recruiter to get him to the Czech Republic, spend a day there and headed out to Portugal where he believes there is a clear path to citizenship and a better future.Officials records show that last year alone, 1,287 Nepalis acquired Portuguese citizenship – making them the <a href="https://sefstat.sef.pt/Docs/Rifa2019.pdf" data-saferedirecturl="https://www.google.com/url?q=https://sefstat.sef.pt/Docs/Rifa2019.pdf&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNH-PFtiSt_DjKf5MBr5tMgZMfo8SQ">ninth biggest nationality in the country</a>.The dream of a EU ‘red passport’ however comes with a price, many Nepalis have it difficult adjusting to the language, culture, and grueling hard work in a farm. The recruiter usually takes a cut, but there is not much they can do about it. Most Nepalis soon move on to Lisbon and other cities to work in restaurants and cafes. Because they are eligible for unemployment benefits, many have got 70% of their salaries for five months of the Covid-19 lockdown.In March, Portugal decided to temporarily give migrants the facilities of full citizenship so they could access health and public service, a step which has received accolades globally. The country also <a href="https://www.theportugalnews.com/news/2020-11-05/provisional-legalisation-of-246000-migrants/56546" data-saferedirecturl="https://www.google.com/url?q=https://www.theportugalnews.com/news/2020-11-05/provisional-legalisation-of-246000-migrants/56546&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNHp4gTbHiGQ8B7l8TflNKdwILbDkA">temporarily regularised the status of 246,000 migrants</a> till March 2021, among them some Nepalis.With its mild climate and opportunities in the service sector, Malta is another destination for Nepali workers who want to use it as a stopover to western Europe. However, it is not as easy to obtain citizenship in Malta compared to Portugal.Nepalis like Ram, who worked in a store in Valetta have received unemployment benefits during the pandemic. Nepalis working less than 100 hours a month are eligible to get €600 from the Maltese government.“I am here just to earn and return home,” Ram told us over the phone. “My residence card allows me to visit other Schengen countries which is a bonus, but there many other Nepalis who are just waiting to secure a future in Europe for themselves and their families, and for them ease of obtaining citizenship plays a role in country selection.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be28a9c7e80680e083eb4jpeg.jpg" alt="" width="683" height="910"><figcaption> </figcaption></figure>Ironically, Nepali workers in Romania, Portugal and Poland are filling in for nationals of those countries who have themselves migrated out. The Poland-Germany, Romania-Italy and Romania-Spain corridors are in the ten largest migration corridors globally, leading to significant worker shortages in these countries.During the pandemic <a href="https://www.theguardian.com/world/2020/apr/15/romanian-fruit-pickers-flown-uk-crisis-farming-sector-coronavirus" data-saferedirecturl="https://www.google.com/url?q=https://www.theguardian.com/world/2020/apr/15/romanian-fruit-pickers-flown-uk-crisis-farming-sector-coronavirus&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNHxZtaOX3Itj_NlB_vvHtGAirzPtw">Romanians moved westward</a> to fill worker shortages including via special agriculture worker chartered flights to the UK and <a href="https://www.nytimes.com/2020/05/18/world/europe/coronavirus-german-farms-migrant-workers-airlift.html" data-saferedirecturl="https://www.google.com/url?q=https://www.nytimes.com/2020/05/18/world/europe/coronavirus-german-farms-migrant-workers-airlift.html&amp;source=gmail&amp;ust=1606375552722000&amp;usg=AFQjCNEKLJdVi2grvYIc1QSEDB40ulb1mg">Germany</a> to pick fruits and vegetables. The worker shortage they leave behind is being filled by migrants from countries like Nepal who pay big recruitment costs for job placements, and whose ultimate dream destination also happens to be the same western European countries.Nepalis took labour approvals to migrate to 127 countries in 2019/20, of which 94% was to the Gulf and Malaysia – most of these were intermediated by private recruiters. While 747 recruiters mobilised workers to Qatar and 497 to the UAE, the number of recruiters that placed Nepali workers to Poland, Portugal, Romania and Malta were only 66, 9, 14, and 9 respectively. (See chart)<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181124/636be28d9c7e80680e083eb5jpeg.jpg" alt="" width="874" height="635"><figcaption> </figcaption></figure>“Compared to our traditional destination markets, the recruitment process for Europe is cumbersome and lengthy, while chances of visa rejection are also high for Schengen countries,” says Sujit Shrestha, General Secretary of the Nepal Association of Foreign Employment Agencies (NAFEA). “This has deterred recruiters. Workers have to travel to India for their visas, which further complicates the process and makes it costly.”Non-Schengen visas for countries like Romania and Cyprus are almost guaranteed once the documentation is complete, but it takes months. The absence of Nepali missions in these destinations deters some employers as recruiting Nepalis requires mandatory demand verification from concerned missions.Shrestha is coordinating with the Foreign Ministry and the Labour Ministry to diversify recruitment to higher earning countries with strong labour protection as a priority.He says: “There is a good case to be made to simplify the process. There are significant employment opportunities in European countries that we can benefit from, but the procedural hurdles are too many.”

Upasana Khadka

Europe now favoured destination for Nepalis

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.

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