<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/63720a149c7e80680e0b557fjpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo: AMIT MACHAMASI</figcaption></figure>There is intense international diplomatic pressure for and against a <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">$500 million American project</a>, as Nepal’s main political players try to<a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/" target="_blank" rel="noopener noreferrer"> strike backroom deals</a> ahead of the 28 February deadline for ratification of the compact by Parliament.This being Nepal, lawmakers will be expected to go late into the night to vote. And if they still need more time at the stroke of the midnight hour on Monday, 28 February, they might argue that there is another 12 hours before it is midnight in Washington DC.Whatever happens in the coming days, by playing political ping-pong with the MCC Nepal’s leaders have damaged <a href="https://www.nepalitimes.com/latest/nepal-in-political-and-geopolitical-jam/" target="_blank" rel="noopener noreferrer">Nepal’s international reputation</a> and have come across to both the Americans and the Chinese as being untrustworthy, prone to playing petty party politics to undermine the country’s own national interest.The MCC is a bilateral United States foreign aid agency established by Congress in 2004 to help improve the economies of under-developed countries that have democratic safeguards. Nepal was the only other South Asian country besides Sri Lanka to be offered the grant to ‘maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India’.All agree that those things are needed. The problem has been that rivals of former prime minister K P Oli used his support for the MCC to bring him down, accusing him of selling out the country. It is no secret that <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">Beijing overtly opposed the American project </a>in Nepal, and has used the two Communist parties in the coalition government to reject it.The history of US aid to Nepal begins in the 1950s, and since then it has poured hundreds of millions of dollars into development projects, infrastructure and training. The MCC grant is a continuation of this involvement, and the reason it has become a <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">political hot potato</a> now is because the compact needs Parliament ratification. Ironically, that clause was added because of chronic political instability in Nepal.With growing Sino-US polarity on the global stage, the MCC grant has brought Washington and Beijing on a collision course in Nepal. China is a geopolitical influencer in Kathmandu, and has always been wary of Western support for Tibetan nationalism. The Communist Party of China (CPC) has maintained fraternal relations with Nepal’s Communist parties, and wants them united to reject the MCC.Read also: <a href="https://www.nepalitimes.com/banner/high-tension-in-nepal/" target="_blank" rel="noopener noreferrer">High tension in Nepal</a>, Rabin GiriA fierce power struggle since the 2017 election resulted in a three-way split last year in the once-powerful Nepal Communist Party. Oli’s UML is now in the opposition, while the Maoist Centre led by Pushpa Kamal Dahal and Madhav Kumar Nepal’s Unified Socialists are members of a five-party governing coalition led by Prime Minister Sher Bahadur Deuba of the centre-right Nepali Congress (NC).Deuba has been a vocal supporter of the MCC. So was his predecessor Oli who now sees the project as a wedge to <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">split the coalition</a> ahead of polls. It is an indication of just how high the stakes are that American Ambassador to Nepal Randy Berry met Oli on Tuesday, just weeks after the Chinese Ambassador Hou Yanqi also met him. The UML’s stance will be key to having the MCC passed, although the NC and smaller parties will have enough members for a simple majority if the Communist parties stay away.Democratic disarray in the US since 2016 and the rise of China have made Beijing more assertive in Nepal. China has been the largest source of foreign investment in Nepal for six consecutive years, it has provided large loans for Pokhara airport, and is negotiating another one for the Budi Gandaki dam. The Tibet Railway will arrive at Nepal’s northern border in Kerung by 2025, offering easier overland connectivity to the mainland.The MCC is seen by the Chinese as a direct challenge to its own <a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/" target="_blank" rel="noopener noreferrer">Belt and Road Initiative</a> of which Nepal is a signatory. But many have warned that Nepal might fall into a ‘Chinese debt trap’ similar to the one that has now bankrupted Sri Lanka after it rejected the MCC in 2019.Nepal’s two Communist parties in the coalition contend that the compact is anti-national, allows American law to prevail over Nepal’s law, and lawmakers will have insufficient oversight over the MCC board. They have successfully mobilised the social web to spread fear among Nepalis of American imperialist ambitions to counter China. Following the chaotic withdrawal from Afghanistan and past American misadventures in the Gulf, many on Nepal’s cybersphere say the country could face similar instability with greater American engagement.If Parliament fails to ratify the MCC by the deadline, it could impact not just US-Nepal relations, but also undermine the country’s international credibility, dependence on multilateral agencies, and even Nepal’s peacekeeping operations for which the Americans pick up the tabs.US Assistant Secretary Donald Lu is said to have pointedly warned Nepali politicians in a call this month that Washington would "review its ties with Nepal" if an agreement is not reached, although the US Embassy later clarified that it was up to Nepal to take the grant or not.Read also: <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/" target="_blank" rel="noopener noreferrer">To be or not to be on the MCC</a>, Anil ShahThe most direct consequence of the project being cancelled will be in building a crucial 400kVa transmission line along the Kathmandu-Butwal corridor to evacuate the estimated 3,500MW of electricity that the country will be generating by 2025. Nepal will have to build the transmission line possibly with Chinese loans, which will mean greater cost and further delays.The elephant in the room in all this is India, which has kept out of the debate so far. But it is watching warily since New Delhi and Washington are allies, and yet Nepal's prevarication is a signal of bending towards Beijing. India is Nepal’s biggest trading partner by far, and it will be watching out for Chinese inroads into Nepal’s infrastructure if the MCC is rejected.On the other hand, if the MCC goes ahead it risks China's ire. On 23 February, Chinese Foreign Ministry spokesperson Hua Chunying said Beijing opposes "coercive diplomacy" by the United States in Nepal.Hua added: "How can a gift be sent by an ultimatum? Is it a gift or a Pandora's Box?"In MCC-related posts on the Sina Weibo platform's comments call the MCC a ‘US trap’ and ‘a form of occupation’. Some comments go even further, calling the US a ‘colonist power’. Another post said: ‘Nepal is close to China, that's why the US wants to come here."With geopolitics heating up, Nepal now finds itself caught between two powers like Vietnam vis-à-vis the East China Sea, or the Ukraine crisis. However, Mongolia is an example of a country that has successfully negotiated the MCC despite being squeezed between Washington, Beijing and Moscow. Mongolia is using its $350 million MCC grant for a water supply project in Ulaanbaatar.Whichever way it goes, the MCC will be a tipping point in Nepal’s domestic politics and will have a direct impact on three levels of elections this year.Read also: <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium-2/" target="_blank" rel="noopener noreferrer">The message is the medium</a>, EditorialHoang Chu is a student at Pitzer in Nepal in Claremont, the United States.

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It’s decision time

<img width="1050" height="700" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208f89c7e80680e0b5517jpeg.jpg" alt=""/>A civil society group has urged Nepal’s political parties to take action against <a href="https://www.nepalitimes.com/latest/nepal-speakers-ipu-trip-slammed/" target="_blank" rel="noopener noreferrer">House Speaker Agni Sapkota</a>, who they say has continuously violated the responsibilities and expectations vested in him as Speaker.A day after the statement, and right on cue, Sapkota for the second time postponed by a week a scheduled session of Parliament that for Wednesday, 9 February. The suspicion is that the speaker is trying to block the ratification by the House of the controversial American-supported <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation</a> (MCC) project.The row has <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/">threatened to split the five-member ruling coalition</a>, with Prime Minister Sher Bahadur Deuba of the Nepali Congress and the Janata Samajbadi Party (JSP) supporting it while two Communist party members of the governing alliance opposing it.The Maoist Centre and the Unified Socialists fear that Deuba may team up with the opposition UML to pass the MCC automatically leading to a collapse of the coalition. The alliance is important to the two communist parties because they broke away last year from the NCP, and are not fully ready for <a href="https://www.nepalitimes.com/editorial/think-nationally-vote-locally/" target="_blank" rel="noopener noreferrer">elections</a> this year. Read also: <a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/">Maoists backpedal on MCC letter</a>, Nepali Times <figure><img width="960" height="639" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208fb9c7e80680e0b5518jpeg.jpg" alt=""><figcaption>Anti-MCC protests at Maitighar Mandala and Parliament on Wednesday. Photos: MAIT MACHAMASI</figcaption></figure><img width="960" height="640" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208fd9c7e80680e0b5519jpeg.jpg" alt="">‘It is the institutional and legal duty of the Speaker to facilitate the placement of all bills presented by the government before the House,’ the civil society statement reads,  accusing Sapkota of holding up ratification for two years. Sapkota, a close confidante of Maoist Centre Chairman Pushpa Kamal Dahal,  has used the UML’s obstruction of Parliament as an excuse to postpone house sessions, effectively blocking parliamentary discussion of the $500 million American-supported project to<a href="https://www.nepalitimes.com/banner/own-goal/" target="_blank" rel="noopener noreferrer"> upgrade transmission lines and highways in Nepal</a>. Supporters of the Maoist Centre and the Unified Socialists on Wednesday staged a street rally outside Parliament in support of the speaker and against the MCC.  Disagreement within the governing coalition prompted Sapkota to postpone Wednesday’s parliament meeting, hours before it was set to begin, to 14 February. The US has said that the project needs to be ratified by parliament by 28 February, and the Chinese have been <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">lobbying actively against it</a> – adding a geopolitical element to the row.While Prime Minister Deuba backs the project, his alliance partners Pushpa Kamal Dahal of the Moaist Centre and Madhav Kumar Nepal of the Communist Party of Nepal (United Socialist) have been fiercely opposed to it.Read also: <a href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer">MCC row damages Nepal’s credibility</a>, Ramesh Kumar <img width="960" height="640" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209009c7e80680e0b551ajpeg.jpg" alt=""><img width="960" height="640" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209039c7e80680e0b551bjpeg.jpg" alt=""><img width="960" height="640" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637209059c7e80680e0b551cjpeg.jpg" alt="">The open letter from civil society notes that the Speaker has sought to evade the Constitution and relevant laws in order to exercise executive powers since the day of his appointment, even though Nepal’s parliamentary system does not grant such powers to the Speaker.“The main political parties must immediately take action on Agni Sapkota in order to protect the values and principles of the parliamentary system,” the statement reads.  Agni Sapkota was appointed Speaker in January 2020 even though he has been accused of <a href="https://archive.nepalitimes.com/article/editorial/state-of-impunity,2976" target="_blank" rel="noopener noreferrer">summary execution</a> during the conflict, with cases against him pending in Nepal’s Supreme Court.Sapkota was a central committee member and leader of the underground Communist Party of Nepal-Maoist (CPN-M) in Sindhupalchok during the armed insurgency and said to be involved in the April 2005 abduction and subsequent killing of civic leader Arjun Bahadur Lama from Kavre district.  Arjun Lama’s wife Purnimaya Lama is one of the signatories of the appeal.The district police had initially refused to register an FIR on the case, until a 2018 directive from the Supreme Court to the Kavre police to investigate the case and submit monthly reports. Read also: <a href="https://www.nepalitimes.com/latest/speechless/" target="_blank" rel="noopener noreferrer">Speechless</a>, Sewa BhattaraiThe open letter says the fact that Sapkota has continuously occupied high political positions makes it clear that the police have been intimidated while conducting investigation. “Influencing the police administration by virtue of his position of power … and by remaining an absconder on the murder case of Arjun Lama, Agni Sapkota is responsible for obstructing justice in the particular case and contributing to the general weakening of the law and justice system in the country,” the statement reads.The signatories of the appeal include Purnimaya Lama, Badri Prasad Bhusal, Bhagiram Chowdhary,  Indra Prasad Aryal, Kanak Mani Dixit,   Kedar Narshing KC, Maina Karki, Manamunishwar Acharya,  Rajan Kuikel, Sabitri Shrestha, Suman Adhikari,  Surya Bahadur Adhikari,  Sushil Pyakurel, and Yagya Raj Thapa.Read also: <a href="https://www.nepalitimes.com/latest/14-years-after-conflict-no-closure-in-nepal/">14 years after conflict, no closure in Nepal</a>, Nepali Times

Nepal House speaker embroiled in MCC row

<img width="2211" height="1541" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161152/636d1ea99c7e80680e0af421jpeg.jpg" alt=""/>A <a href="https://www.nepalitimes.com/banner/mcc-ball-in-nepals-court/" target="_blank" rel="noopener noreferrer">$500 million American grant</a> to upgrade Nepal’s infrastructure appears at first glance to be delayed because of domestic politics. But the real reason seems to be Beijing’s opposition to the project, and its pressure on politicians not to implement the project.Sources say the Chinese government has been showing unusual interest in the Millennium Challenge Corporation (MCC) project as Prime Minister Sher Bahadur Deuba prepares to present it for approval by the winter session of Parliament, <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">despite opposition from coalition partners</a>.On 22 December, Chinese Ambassador to Nepal Hou Yanqi made a hasty trip to the Balkot residence of former prime minister KP Oli of the opposition UML. <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">Oli and Deuba back the American project</a>, and some see this meeting of minds on the MCC even <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer">triggering a breakup of the governing coalition</a>.On 13 December, Vice Minister Chen Zhou of the International Department of the Communist Party of China (CPC) held a video conference with the newly-elected UML General Secretary Shankar Pokharel.Pokharel is said to have assured Zhou that his party would not allow activities that could damage Sino-Nepal relations. The UML’s Bishnu Rijal confirmed that Zhou’s call was about the MCC, but added ambiguously: “He must have had queries about development projects that China’s neighbouring country is undertaking.”<a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/">Missing links in Nepal’s MCC debate</a>, Jeevan R Sharma and David SeddonZhou had a similar chat with Madhav Kumar Nepal of the Unified Socialists who is also reported to have reiterated that he opposed anti-China activity in Nepal. Nepal has publicly stated he would reject the MCC if it could affect ties with neighbouring countries. CPC officials also held virtual meetings with Pushpa Kamal Dahal of the Maoist Centre, who has not hidden his opposition to the MCC.A government official, speaking on condition of anonymity, said: “There is no doubt that China does not want the MCC to go ahead, it has already conveyed as much to the top political leadership.”Speaker Agni Prasad Sapkota of the Maoist Centre, who is close to Beijing, has said the MCC would not move forward under his watch. His predecessor Krishna Bahadur Mahara publicly admitted to stopping MCC ratification because it was anti-Chinese.“China has already sent the message that it will not sit idly if the development activities in Nepal undermine its interests here,” Nepal’s former ambassador in Beijing Mahendra Bahadur Pandey told Nepali Times. “China has been concerned about the MCC from the very beginning, and views it with suspicion.”<a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/">MCC: damned if we do, damned if we don’t</a>, Nepali TimesChina’s objection to the MCC is most noticeably expressed through op-eds. Wang Yiwei, a professor of international relations at the Renmin University, in one interview with <a href="http://nepalkhabar.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://nepalkhabar.com&amp;source=gmail&amp;ust=1640329948769000&amp;usg=AOvVaw1-5zGkO7r9layvLRxbBfav">nepalkhabar.com</a> last October called the MCC ‘an American ploy’.Diplomatic affairs expert Geja Sharma Wagle says that besides the Americans, Nepal needs to balance the interests of its neighbours India and China as well. He says, “It is in Nepal’s best interest to implement both the American MCC and Chinese BRI projects based on our national needs.”Many analysts see the MCC as America’s response to <a href="https://www.nepalitimes.com/latest/bri-and-trans-himalayan-connectivity/" target="_blank" rel="noopener noreferrer">Beijing Belt-Road Initiative (BRI) </a>which promotes connectivity and infrastructure in order to benefit China’s influence and trade in the region.Apart from Dahal’s CPN (Maoist Centre) and Nepal’s CPN (Unified Socialist), other coalition members Janata Samajwadi Party and Rastriya Janamorcha are also against the American grant. Even the Hindu-Right Rastriya Prajatantra Party recently spoke against it. Deuba called an all-party meeting this week to discuss the MCC, but Oli did not show up. Representatives of other parties reiterated their opposition to the compact in its present form. Jhala Nath Khanal of Unified Socialists was once more named to a committee to further study the MCC agreement.Dahal and Nepal used KP Oli’s support for the MCC against him in a<a href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer"> bitter power struggle</a> that did not just split the Nepal Communist Party, but also the UML. They were so successful in generating public opinion against the MCC, saying it was an American strategy against China, that they find it difficult to back it now, especially with <a href="https://www.nepalitimes.com/here-now/all-eyes-on-2023/" target="_blank" rel="noopener noreferrer">elections a year away</a>.  Dahal is also concerned about his Maoist Centre general convention.At the height of political infighting last year, Chinese Ambassador Hou Yanqi lobbied unsuccessfully to keep Nepal’s communists united. Now that KP Oli is in the opposition, he is not as openly pro-MCC, but sees it as a weapon to get back at Deuba and Dahal by splitting their coalition — even if it means forging an alliance with the NC.Nepal signed the MCC agreement in Washington in 2017 when Deuba led a similar NC-Maoist coalition. The US has repeatedly said that the project is a grant that Nepal qualified for, and has no strings attached. MCC Vice President Fatima Sumar and US Deputy Secretary of State Donald Lu <a href="https://www.nepalitimes.com/latest/nepal-stuck-between-rock-and-hard-place/" target="_blank" rel="noopener noreferrer">visited Nepal recently</a>, and reportedly gave Deuba an ultimatum to have Parliament ratification by the end of this year. <img width="1142" height="868" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161152/636d1eac9c7e80680e0af422jpeg.jpg" alt="">Experts say the MCC is important to expand Nepal’s power grid into the future with 400kVA transmission lines that can also allow Nepal to export more surplus electricity to India. Nepal will be generating 4,500MW of hydroelectricity in the next three years, and over 12,000MW by 2030, and much of it risks being wasted if it cannot be supplied to load centres. In monetary terms, Nepal’s <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" target="_blank" rel="noopener noreferrer">power producers could lose</a> at least Rs142 billion annually. Which is why energy experts say Nepal should start work immediately on transmission lines even if the MCC does not go ahead.Although most of the $500 million project is for upgrading transmission lines, it will also improve highway connectivity in central Nepal to <a href="https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/" target="_blank" rel="noopener noreferrer">boost economic growth</a>.  Read also: <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/">The cost of no MCC</a>, Nepali Times

China lobbying against MCC

Nepal has shut down dozens of social media platforms in a move that is widely seen as an effort to tax the revenue they generate in the country, and to control content critical of government. The sites were blocked as of midnight on Thursday, 4 September and affects all Meta products including WhatsApp and Messenger, Threads, and others. Although YouTube, Google and X are also on the government’s list, they were still working as of Friday midday.&nbsp; The government says it took the action after repeated warnings to the platforms to open offices in Nepal, a Cabinet decision last month setting a deadline, as well as a 17 August Supreme Court ruling also requiring them to register and pay requisite taxes. However, the Bill cited in the ban, ‘The Operation, Use, and Regulation of Social Media in Nepal’ has not yet been passed by Parliament. Some social media platforms which were already paying taxes in Nepal even though they are not officially registered, have also been blocked. The move is the latest in <a href="https://nepalitimes.com/news/big-beautiful-bills" target="_blank">a slew of draft legislations</a> designed to undermine Nepal’s open society. A Bill amending the Print and Publications Act would allow district bureaucrats to shut down media. Another draft Bill would allow political appointees to head a new Media Council with the power to revoke the licenses of journalists.&nbsp; A counter-intelligence Bill would let just about anyone in government to arbitrarily tap phones, read emails and trail citizens. On Wednesday the government announced new immigration requirements that would allow it to track the movement of all foreigners in the country. Yet another draft Bill has been set to Parliament to dissolve the <a href="https://archive.nepalitimes.com/news.php?id=10675" target="_blank">Social Welfare Council (SWC)</a> and move registration and monitoring of non-governmental organisations, nonprofits and charities to the Ministry of Social Welfare. Seen in this light, the blockage of social media platforms this week is seen as the latest government attempt to constrict freedom of press. Nepal is one of the few remaining open societies in Asia, and now appears to be drifting towards authoritarianism. The government’s sudden shutdown of social media has been greeted with howls of protest on platforms that still remain open, like Viber and TikTok, as well as in Nepal’s mainstream press. Even senior members of the ruling UML-NC coalition have sharply criticised the move, asking if the government is trying to “turn Nepal into North Korea”.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656.jpg" data-media-id="editor_2" data-image-id="2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656" data-rendition-name="original" width="4280" height="5187" loading="lazy" alt="social media ban in Nepal"> </figure>  The Regional Director of the New York-based Committee to Protect Journalists (CPJ) Beh Lih Yi said in a statement: ‘Nepal’s sweeping ban on social media sets a dangerous precedent for press freedom. Blocking online news platforms vital to journalists will undermine reporting and the public’s right to information. The government must immediately rescind this order and restore access to social media platforms, which are essential tools for exercising press freedom.’ Besides undermining press freedom, blocking social media platforms will also hurt commerce and the economy since so many small and medium business trade through Instagram, Facebook and other platforms. Nepal’s vibrant social media has also been a boost or citizens to assert identity, build solidarity against injustice and play an adversarial role when the mainstream media does not do it. Social media platforms have also become the tenuous link for Nepali families scattered across the world to keep in touch with each other — its importance growing with the increasing size of the diaspora. The government wants social media platforms to register, pay taxes and remove posts on their sites that ‘undermine the national interest and Nepal’s territorial integrity, disturb social and religious harmony’.&nbsp; In response, rights activists have said while there is need for the government to regulate extreme content and hate speech, officials appear to be more intent on clamping down on free speech and trying to force platforms to share the revenue. On Friday, the government had allowed WhatsApp back online, but there were reports that it had instructed the Nepal Telecommunication Authority (NTA) to instruct mobile and internet service providers to block by Friday night all platforms, including Facebook, Instagram, Messenger, WhatsApp, X (Twitter), YouTube, LinkedIn, Reddit, Threads, Snapchat, Pinterest, Signal, Clubhouse, Rumble.&nbsp; Platforms that have registered and are allowed include TikTok, Viber, Nimbuzz, Popo Live, WeTalk, Global Diary and the Nepali portal Hamro Patro. TikTok was banned last year for ‘disturbing social harmony’ and it was lifted after the platform registered its office in Nepal. But even while it was banned, many users simply switched to VPN. Telegram was also banned for ‘financial crimes’ and it has since also been allowed back. NTA officials confirmed that some Asia-Pacific regional offices of platforms, including Meta had been in touch overnight inquiring about the registration process.&nbsp; Nepal is not alone in regulating social media. China bans most Western platforms, Russia and Turkey regulate their and require platforms to locate their data servers in the country. Gulf countries allow social media but keep a tight control on dissent.&nbsp; Experts have said even the government will not dare close down YouTube since so many Nepali individuals and companies make money with posts on that platform, and closing it would also impact on Google and Gmail. Facebook had also just launched a monetisation scheme for videos and reels, and Nepalis uploading content would lose revenue.&nbsp; Blocking the platforms has already hit content creators, influencers and cut small businesses from reaching customers. A survey of social media use in Nepal by Sharecast Initiative showed that 94% of those with smart phones used YouTube, followed by Facebook (92%) while TikTok was in the 50-60% range. X and Instagram were in the single digits. A YouTube ban will also hurt the mainstream media since up to 20% of the revenue of Nepal’s main tv channels came through YouTube. Some 11.1 million Nepalis watch YouTube content every day, the survey showed. ‘For global giants like Meta or Google, Nepal is a small market, and they may not even flinch — but for millions of Nepalis, these platforms are central to daily life, livelihoods, and connections across the world,’ wrote AI consultant Naresh Newar in a LinkedIn post. Some experts said the government’s sweeping ban on social media networks was untenable and the government would be forced to rollback sooner or later. Said editor Shiva Gaunle: “The platforms had given citizens a voice and broken the monopoly of the government, legislators, the courts and journalists over public opinion. This is an effort to reassert that monopoly, but Nepal can never be turned into a North Korea.”

Protest grows against Nepal’s social media ban

<a href="https://www.youtube.com/watch?v=x2fZXyjsE28" target="_blank">Yog Narendra Malla</a> became king at age 18, and ruled Patan from 1684-1705 — his reign marked by a cultural and architectural renaissance of the city state. He put up a statue of himself in the palace square with a little bronze bird sitting on the guardian serpent above his head. It is said he told his subjects that he would look after their welfare till the day the bird flew off. During<a href="https://nepalitimes.com/here-now/lessons-not-learned-from-2015-o2etq6zu"> the 2015 earthquake</a>, the pedestal collapsed and the statue was damaged. The bird was lost, only to be located in a pile of debris and reinstated when the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/piece-by-piece-patan-darbar-square-reconstruction,3782" target="_blank">statue was consecrated</a> two years later. <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/x2fZXyjsE28?si=jYfIb4p6zCLXYQ1T" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div> History remembers Yog Narendra Malla as a wise king, but like most<a href="https://nepalitimes.com/here-now/preserving-king-birendra-s-family-home"> royalty of the day</a>, he had a weakness for women. He is supposed to have consorted with 30 queens and numerous concubines. At least 33 of them self-immolated themselves on the king's funeral pyre when he died, adhering to the prevailing <a href="https://archive.nepalitimes.com/article/review/Jhola,947">practice of sati</a>. When Yog Narendra Malla’s favourite queen found out that he was carrying on with yet another woman, she got the local community of the Kwelachhi neighbourhood to stage a shadow sex play to quite literally expose his unfaithfulness. Actors enacted the explicit exploits of the king and his mistress, a bright butter lamp projecting the moving shadows of their lovemaking on a thin white drape to entertain those gathered in the square below. The queen made sure that the show was designed to face the home of the king’s paramour to shame them both. She also paid for a group to chant a bhajan with lyrics that ridiculed the king’s extramarital affair. The Jhyalcha Guthi community trust that the queen set up three-and-half century ago is still active to this day, and performs the annual shadow play in the same building in Kwelachhi the day before <a href="https://nepalitimes.com/banner/the-legend-behind-the-myth-of-indra-jatra">Indra Jatra </a>every year. This year’s show is on Friday evening, 5 September. The opening lines of the chants that accompany the play are the same words approved by the queen all those years ago: “Raja Yog Narendra ya aparadh…” (King Yog Narendra’s crime…) The community leader of the Kwelachhi neighbourhood, 62-year-old Baburaja Awale, explains the importance of the event: “This Jhyalcha is our<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saving-the-intangible,3303"> intangible heritage</a> and oral history. We do not have a written format, it has been passed down from generation to generation. Every word of the bhajan is the story of King Yog Narendra Malla.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250904070952_249e85b32cbd99bb8515151557e0ec1a65d44a34ef1aacabaaeb469622d12664.jpg" data-media-id="editor_8" data-image-id="20250904070952_249e85b32cbd99bb8515151557e0ec1a65d44a34ef1aacabaaeb469622d12664" data-rendition-name="original" width="1750" height="1167" loading="lazy" alt="Sex and the city of Patan"> <figcaption>The statue of Yog Narendra Malla being reinstated after it toppled in the 2015 earthquake. Photo: GOPEN RAI/ NEPALI TIMES ARCHIVE</figcaption> </figure>  Jhyalcha Pyankha, as the ceremony is called, starts with a puja for the Bhimsen — the god of wealth and prosperity, a popular <a href="https://nepalitimes.com/here-now/the-homecoming-of-nepal-s-gods">deity in Patan</a> who has a temple dedicated just to him in the palace square. This is immediately followed by a bhajan of Bhairab performed with <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Buzz-house,670">traditional Newa musical instruments</a>. Community members serve snacks consisting of samay baji beaten rice, water buffalo chunks, soybean, green veggies, lentils, ginger, garlic and aila liquor. “In the first act of the shadow play, the man initiates the lovemaking, and in the third it is the woman,” says Laxmi Lal Awale, also a member of the trust that organises the show. The shadow action is all uncensored, but interspersed with <a href="https://nepalitimes.com/review/between-the-sacred-and-everyday">scenes of everyday life</a>: the woman is spinning a thread, the king is going about his royal chores, and the two sit down to share sanacha fermented pickle that is popular this time of year. <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/qZ3twuG1wNQ?si=yRfkoC3A-X9cIl8r" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div> “Back then, there was no tv, films or YouTube, and yet we managed to stage the shadow play using our own resourcefulness,” says Baburaja Awale. “It is important to continue the tradition.” The challenge now is to ensure that the<a href="https://nepalitimes.com/opinion/the-reign-of-the-god-of-rain"> younger generation takes over</a>, learning the lyrics of the ancient bhajan. The dafa khala group that performs all over Patan during festivals and religious events is now training teenagers to play the musical instruments and act in the shadow play. The Jhyalcha was staged even after the 2015 earthquake when the falcha where the bhajan is performed collapsed and they made-do in a tin shed. The structure was later rebuilt with a grant from the group, Photo Circle. Lalitpur Metropolitan City sets aside a budget of Rs50,000 to organise the Jhyalcha Pyankha every year, but this is not enough and is supplemented by individual donations. The performers including musicians and actors are all volunteers, and take part in it because it is their community duty. The erotic shadow play was way ahead of its time, not just in its graphic content but the use of contemporary local technology as well as improvisation and pure imagination. Says Laxmi Lal: “Whatever its origin in the legend of King Yog Narendra Malla and his queen, Jhyalcha also served as a medium of <a href="https://nepalitimes.com/here-now/lets-talk-about-it">sex education</a>. In the past, women were discouraged from watching the shadow play, but today everyone is welcome, we all watch it together.” Jhyalcha Pyankha Kwelachhi, Chyasal, Patan 7PM onwards Friday, 5 September

Sex and the city of Patan

Unlike many countries, there is not much incentive in Nepal for the private sector to fund charities and non-profits. Donations and grants are not tax-deductible.
Yet there are corporate entities that have Corporate Social Responsibility (CSR) in their portfolio of activities through foundations that they have set up. Some do it loudly to gain public relations mileage, while others are quiet about their <a href="https://nepalitimes.com/opinion/comment/norway-supports-himalayan-climate-research?mdrv=www.nepalitimes.com&amp;=1">generous support</a>.
The CSR outlay of factories and manufacturing companies is regulated by Industrial Enterprise Act (IEA), while the Nepal Rastra Bank oversees grants banks and financial institutions contribute and requires them to set aside 1% of their net profit for CSR activities.
The guideline requires banks and financial institutions to donate to activities covering education, health, environment and financial literacy, among others. Recently, the Supreme Court directed the government to formulate a Bill in the parliament to standardise and regulate the private sector’s CSR activities.
“We receive guidelines from Nepal Rastra Bank and follow them,” says Pranisha Shrestha who heads the CSR Department at NMB Bank. “We have got a notice about updates on those guidelines, and we will adapt accordingly.”
<a href="https://nepalitimes.com/news/greening-nepal-s-tourism">Environmental sustainability </a>is one of the important components of CSR for Nepali companies, and there have been many initiatives aimed at urban renewal. One of the most visible is of the telecommunication company Ncell, which is among Nepal’s largest taxpayers.
Five years ago, Ncell adopted a 6km stretch of the Ring Road from Ekantakuna to Koteswor-Kalanki, planting 12,000 saplings. They have now grown into<a href="https://nepalitimes.com/opinion/seeing-the-forest-and-trees-in-nepal"> a thick forest</a> along the embankment of the road.
Not only is the lush greenery in an overbuilt part of Lalitpur soothing to the eye, it also helps in reducing temperature within <a href="https://nepalitimes.com/news/in-the-heat-of-the-moment-5xcycyot">the urban heat bubble</a>, and also contributes to reducing air pollution and traffic noise.
“We started a pilot project along 600m of the Ekantakuna section of the Ring Road during the pandemic,” recalls Bishakha Lakshmi Khadka, Director of Corporate Communications and Sustainability at Ncell. “It went really well, and after that we extended the<a href="https://nepalitimes.com/here-now/saving-cities-with-trees"> tree planting</a> and upkeep to Kalanki.”
Sustainability also means making younger Nepalis aware of <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>and environmental sustainability, which is why Ncell has also undertaken a Green School initiative in and around Kathmandu Valley. Besides its One-Tree-One-Youth and 1 Million Trees campaigns, the initiative also aims at behavior change about littering with its waste hackathon in schools.
“The young students can be catalysts with a multiplier effect beyond their schools to society at large, and it has inter-generational impact into the future,” explains Khadka.
Indeed, while <a href="https://nepalitimes.com/banner/tree-mendous">Nepal has doubled its forest cover </a>in the past 30 years to 46% of the country’s area, urban centres like Kathmandu do not have much open spaces and greenery left. And that is where companies like Ncell, Jawalakhel Group of Industries, and others have focused on CSRs.
NMB Bank also runs financial literacy programs for youth where they can learn more about social media safeguards, digital payment systems, with a focus on safety and security. Such training not only helps build skills for the future but also protects young Nepalis from online crime.
“<a href="https://nepalitimes.com/opinion/protecting-children-from-anti-social-media">Threats to young minds through social media</a> use are growing as platforms feed algorithm-driven content,” says Shrestha. “We felt media and digital literacy are important in all seven provinces not just to protect young people, but also give them the confidence to use digital financial systems.”
The bank has a special focus on women in leadership programs, and provides scholarships provided in schools across Nepal on environment and sustainability in higher education. Health is another sector where private companies have worked with donating medical equipment, sponsoring health camps and conducting blood donation drives.
CSR or PR?
Other companies heavily involved in CSR include NIMB Bank which contributes to heritage conservation and education, Buddha Air helps farmers in Morang to increase productivity, VOITH with its motto ‘Little things We Do’ provides scholarships to students and has gifted &nbsp;vehicles to hospitals and nature conservation groups, Dwarika’s Hotel promotes organic farming and zero waste initiatives, heritage conservation and helps revive traditional handicrafts.
Although some CSR activities have been criticised for masquerading as PR and for greenwashing, many Nepali companies are actually contributing to improve the situation for individuals in need and underserved communities.
It also brings a sense of accountability to the corporate sector so they look beyond shareholder profit with greater involvement in the public good. In Nepal, where government delivery mechanisms are not up to speed in the social sector and environmental sustainability, CSR is a vehicle for public-private partnerships.
Collaboration with the government is an important aspect of these initiatives since that allows localised campaigns to be scaled up by showing what is possible. For example, the three Metropolitan Cities of the Valley and other private companies are trying to emulate what Ncell has achieved on the Ring Road.
“The Ring Road plantation project has been massively successful,” says Khadka “We were recognised by the Lalitpur Metropolitan City and the Forestry Department for adding greenery to what would have been just an asphalt strip.”

Corporates responsible to society

The world’s largest corporations now rival most governments – not only in terms of revenue and assets, but also in their ability to shape political outcomes. Their power is reinforced by the immense personal fortunes of billionaires, which enable them to wield disproportionate influence over <a href="https://nepalitimes.com/news/big-beautiful-bills">public policies, laws, and regulations</a>.
Crucially, extreme concentrations of wealth and power could not have developed without the active support of policymakers, whether tacit or explicit. Consequently, being an oligarch is inherently precarious.
Crony capitalism may grant enormous advantages, but it also carries built-in risks. Chief among them is <a href="https://nepalitimes.com/editorial/slapping-democracy">political change</a>: new leadership, whether elected or imposed, may not extend the same protections or privileges to elites favored by the previous government.
That danger is especially acute in authoritarian or personality-driven regimes, where leaders’ whims often override institutional checks. The <a href="https://edition.cnn.com/business/timeline-elon-musk-trump-x-dg">on-again, off-again bromance</a> between US President Donald Trump and Elon Musk is an obvious example.
As <a href="https://nepalitimes.com/news/the-geopolitics-of-nepal-s-politics">geopolitical tensions</a> escalate, however, oligarchs are no longer contending solely with domestic challenges. Increasingly caught in global power struggles, they have become convenient targets for hostile foreign powers seeking to pressure or undermine the leaders they support.
The <a href="https://www.aljazeera.com/news/2023/4/12/us-and-uk-announce-new-sanctions-targeting-russian-ultra-wealthy">sanctions</a> imposed by the United States and the European Union on oligarchs linked to Russian President Vladimir Putin following the 2022 invasion of Ukraine are a case in point. While these measures have done little to change the course of the war, they have profoundly disrupted the lives and businesses of those affected.
Indian billionaires Gautam Adani and Mukesh Ambani have also found themselves in America’s crosshairs. Both have profited enormously from their ties to Prime Minister Narendra Modi – a fellow Gujarati – with their fortunes growing in tandem with his political ascent. This has made them useful bargaining chips in the ongoing trade negotiations between the US and India.
Read also: <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">Nepal and the US-India tariff tiff</a>, Sudiksha Tuladhar
To be sure, Ambani’s Reliance Group had already mastered the art of leveraging political influence to advance its business interests well before Modi rose to power. But Ambani’s alliance with Modi has pushed Reliance’s dominance to new heights. Adani’s rise, by contrast, is <a href="https://thewire.in/political-economy/why-gautam-adani-is-a-factor-in-india-us-ties">inextricably tied to Modi</a>, dating back to the latter’s tenure as chief minister of Gujarat.
Both oligarchs, particularly Adani, have relied on their proximity to Modi to expand their business empires, benefiting from regulatory reforms tailored to their interests and <a href="https://www.cnbctv18.com/aviation/adani-winning-bids-for-six-airports-former-head-of-privatisation-panel-explains-key-policy-changes-15898141.htm">acquiring state assets</a> through lucrative privatization deals, often without a public tender. They have also moved into new sectors by <a href="https://www.freepressjournal.in/business/full-timeline-of-how-gvk-and-adanis-changing-fortunes-sealed-mumbai-airports-fate">purchasing successful firms</a> targeted by Modi’s administration, effectively neutralizing potential competitors.
Moreover, Ambani and Adani have enjoyed privileged access to publicly owned banks, receiving favourable loan terms that allowed them to <a href="https://www.thehindu.com/news/national/companies-bought-over-by-the-adani-group-got-haircut-of-96-to-42-on-loans-from-public-sector-banks-congress/article68606029.ece">restructure</a> their debts with minimal scrutiny. Their political connections, evidenced by frequent appearances alongside Modi during his international trips, have helped them secure <a href="https://www.newsclick.in/%E2%80%98Beneficiaries%E2%80%99-Modi%E2%80%99s-Globetrotting-Adani-Ambani">major contracts abroad</a>.
These political alliances have translated into lenient regulatory treatment. In Adani’s case, allegations that he has engaged in stock manipulation through opaque shell companies in offshore tax havens – exposed by US-based <a href="https://www.reuters.com/world/india/adani-vs-hindenburg-research-what-you-need-know-2024-01-03/">short-seller Hindenburg Research</a> – were met with a muted response. Regulatory bodies like the Securities and Exchange Board of India declined to pursue a serious investigation.
Officially, Ambani has come under scrutiny for profiting from the <a href="https://www.nytimes.com/2025/08/09/business/india-russian-oil-ambani.html">resale of Russian oil</a>, effectively circumventing US sanctions, while Adani is being investigated for <a href="https://www.bbc.com/news/articles/c748y8e4093o">alleged bribery</a>. But Trump’s actions appear to be a calculated attempt to pressure Modi through his inner circle. Adding insult to injury, they come from a US president whom Modi has long described as a “<a href="https://www.nytimes.com/2025/07/31/world/asia/modi-trump-india-tariffs.html">true friend</a>”.
Modi has claimed that his sole concern is protecting Indian farmers – a statement that would surely come as a surprise to the farmer protest movement, which his government has long vilified and suppressed.
Trump, for his part, insists that his priority is securing a better deal for American producers and workers. In reality, many of his key demands are aimed at advancing the interests of US-based multinationals and those of <a href="https://economictimes.indiatimes.com/industry/services/property-/-cstruction/trump-calls-indias-economy-dead-but-trump-towers-earn-thousands-of-crores-from-gurgaon-mumbai-pune-and-other-cities/articleshow/123164276.cms">his own companies</a>.
But given Trump’s track record, it’s hard to imagine that personal grievances did not play a role. Relations between the two leaders have noticeably cooled since Modi <a href="https://economictimes.indiatimes.com/news/defence/narendra-modi-trump-phone-call-pm-modi-makes-it-clear-to-trump-us-played-no-role-in-india-pakistan-ceasefire-no-talks-on-india-us-trade-deal/articleshow/121922239.cms">refused to endorse</a> Trump’s dubious claim that he helped broker the recent India-Pakistan cease-fire – a narrative Trump had hoped would strengthen his bid for a Nobel Peace Prize. Modi’s refusal to play along effectively derailed that effort.
Trump and Modi are both shrewd and self-interested enough to recognise each other’s true priorities. By attacking Modi’s tycoons, Trump may have found the most effective pressure point to extract significant concessions from the Indian government.
If Modi yields, it won’t just be a costly political blunder but also a tragedy with far-reaching consequences for India and the world economy. © Project Syndicate
Jayati Ghosh, Professor of Economics at the University of Massachusetts Amherst, is a member of the Club of Rome’s Transformational Economics Commission.&nbsp;