<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151120/636d08ac9c7e80680e0a602fjpeg.jpg" alt="" width="2172" height="1076"/>With a reduction of the country’s poverty rate, Nepalis are eating more meat and eggs per capita than ever before, improving their nutrition levels and driving a rapid growth of the meat and poultry industry.Much of this new spending on food was a direct result of remittances being sent home to their families by Nepali workers abroad. Middle class families that ate meat only on weekends, now have it almost daily. Many Nepalis no longer have to wait for Dasain or other festivals to have a meat dish in their diet.“Meat is no longer a luxury food item for festivals, now it is an everyday item in the household,” says Saksham Ghimire of Valley Cold Store in Kathmandu, which used to sell only 15kg of chicken when it first opened 40 years ago. Today, the store sells more than 10,000kg of chicken daily.Nepalis consumed 552,000 tonnes of meat in 2020, up from 357,000 tonnes the year before. Average per capita consumption of meat in Nepal has reached 18kg per year — up from 6kg per year in the 1970s. The UN has set 14kg annual per capita meat consumption as the minimum requirement for a balanced diet.Most of the increase in meat eating has occurred in parallel with the growth of the commercial poultry industry. The first modern farm was set up in Bara in 1960 with the import of new breeds. Since then, the poultry industry has grown exponentially with chicken production rising from 5,200 tonnes in 1981 to 255,000 tonnes today.About 700,000kg of chicken meat is consumed daily throughout Nepal, and half of it is sold in Kathmandu Valley alone. Poultry meat that used to make up only 5% of national meat consumption in the 1980s has now reached 46%, with Nepalis eating 1.62 billion chickens annually.There has been a parallel increase in the consumption of eggs, with per capita consumption now 55 eggs per year, compared to the UN threshold of 48 eggs per year for an average person.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151120/636d08af9c7e80680e0a6030jpeg.jpg" alt="" width="2174" height="1432">Besides improving the dietary intake of Nepalis, the phenomenal increase in the poultry industry has also been a boon to the economy. There are now at least 340 modern hatcheries across Nepal with more than 100 plants that provide feed for the poultry farms.“The poultry industry has contributed vastly to the country's economic growth and provided employment to at least 500,000 people who would otherwise have to migrate abroad for work,” says Tikaram Pokhrel of the Nepal Hatchery Industries Association. “Requiring little investment and having very few barriers to entry, poultry farming provides opportunities for self-employment.”Nepal’s poultry industry, however, does face the challenge of reducing production cost to make meat even more affordable, and to compete with cheaper Indian imports. One main reason for chicken meat to become so popular is its affordability — chicken is at least three times cheaper than goat meat and nearly at par with the cost of vegetables.The contribution of remittances to the reduction of poverty in Nepal is the other driver increasing consumption of poultry products. Till as recently as 15 years ago, one in four families in Nepal received remittance income, and this has grown to one in two households who have family members sending money home from abroad.Remittances has brought down the proportion of Nepalis living below the poverty line from 42% in 1995 to 18% today — although experts say the pandemic has pushed more people into poverty because of the loss of income.The annual per capita income of Nepalis was only Rs27,227 in 2005, but this has gone up to Rs166,000 in the last fiscal year. Even factoring in the fall in rupee value, this represents a dramatic increase in disposable income which has contributed to a richer diet among Nepalis.It is not just the poultry industry, the production of goat meat has also increased to 71,000 tonnes per year after the government tightened quarantine rules for the import of goats from India which has saved the country Rs3 billion annually.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151120/636d08b29c7e80680e0a6031jpeg.jpg" alt="" width="1996" height="1330">Nevertheless, chicken is still king. Poultry meat contributes over 46% of the total annual meat consumption in Nepal, with buffalo making up 33%, goat meat 17% and pork at 4%.There has been a direct correlation between the increase in meat consumption with better nutritional levels among Nepalis. The rate of malnutrition among children has dropped significantly over the past two decades. Stunting in children went down from 56% in 1996 to 36% in 2016, and has fallen further to 31% in the latest multi-indicator survey by the Central Bureau of Statistics.Similarly, the proportion of underweight children is down to 27% from 42% in 1996. Protein intake from meat and eggs have played a part in the reduction of malnutrition over the past few decades.“The protein-rich diet of meat and eggs has improved average nutrition levels,” says Aruna Upreti, who however points out that the gains are uneven. “In the Karnali, among Dalit families and across the Tarai, stunting and anaemia are still common.”Despite improving Nepal’s self-sufficiency in meat production, the growth in the industry has also increased imports of maize, soybean and grain that are needed to produce feed. Imports of these ingredients reached Rs23 billion last year.The other disadvantage is that the consumption of meat also has a complex and largely detrimental relationship with the environment. Meat consumption and production are large contributors to the emission of greenhouse gases, and livestock rearing is also resource-heavy, with 4,300 litres of water required to produce 1 kg of chicken meat and 10,400 litres of water for 1 kg of goat meat.Translated by Aryan Sitaula from <a href="https://www.himalkhabar.com/news/124463" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.himalkhabar.com/news/124463&amp;source=gmail&amp;ust=1627457885279000&amp;usg=AFQjCNHw6QkywdBqaa4UMVcsJaJuaJBD9Q">the original in Himal Khabar</a>.

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Meat, money, and the middle class

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141156/636a60d99c7e80680e056e9ejpeg.jpg" alt="" width="1500" height="1337"/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>As befitting a country whose patron deity is The Lord of Animals, Nepal’s autumn festival cycle is about offering buffaloes, goats and fowl to the goddesses, and worshipping cows, dogs and even crows.But our reverence for animals does not carry over into our day-to-day treatment of the animals in our midst. Owners are unmindful of how firecrackers frighten pets, municipalities lynch dogs, abandoned cattle roam the highways, buffalo calves die of suffocation in the backs of lorries, and the ultimate in cruelty: Gadimai Mela. How a country treats its animals tells us a lot about its culture.All this fatalistic brutality hardens us as a society, and translates into abuse of fellow human beings. State neglect condemns many to die due to lack of health care, and decrepit roads kill 2,000 people every year. No one has atoned for war crimes committed during the war. For a decade, Mohamad Aftab Alam got away with burning dozens alive in a brick kiln. An excavator driver in Baitadi last week swung his boom at people, injuring eight.For festivals to be really about the triumph of good over evil, we have to fall back on what all religions teach us: compassion, tolerance, non-violence against sentient beings and a reverence for nature.Read also:<a href="https://www.nepalitimes.com/?p=35062&amp;preview=true" target="_blank" rel="noopener">In an Animal Farm</a><a href="https://www.nepalitimes.com/?p=35114&amp;preview=true" target="_blank" rel="noopener">Waiting till the cows come home,</a> Kunda Dixit<a href="https://www.nepalitimes.com/?p=35133&amp;preview=true" target="_blank" rel="noopener">Saving Nepal’s last wild dogs,</a> Yadav Ghimirey<a href="https://www.nepalitimes.com/?p=35155&amp;preview=true" target="_blank" rel="noopener">A dog with altitude</a>, Sonam Choekyi Lama

Creatures of Culture

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141156/636a60dc9c7e80680e056e9fjpeg.jpg" alt="" width="1500" height="776"/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>George Orwell wrote 1984 to warn us about tyranny perpetuated by fear, and Animal Farm to tell an allegorical tale of the decay of communism. As history steps into the new decade of the 2020s, it looks frighteningly like 1984 has already arrived in the post-truth world.Animal Farm may have been a parody of Stalin’s Soviet Union but it has many parallels today, perhaps nowhere more so than post-revolutionary Nepal, where just about every character from Orwell’s farm has a corresponding political figure. Just fill in the blanks: Farmer Jones (……), Napoleon the pig (…..), Boxer the horse (…..) Moses the raven (…..) The 9 Dogs (…..)  and Benjamin the donkey (….). History is recurring farce.Nepal may now be a secular republic, but the country’s patron deity is still Pashupati Nath, the Lord of Animals. Paradoxically, for a country that worships animals Nepal is increasingly known as a country that mistreats animals. We love our animals to death.Animals are ascribed godlike qualities, only to be tortured and killed. All this comes into sharp focus during Dasain and the upcoming Tihar festival. You cannot eat meat without killing an animal -- we get that. But why kill in the cruellest way possible? Take a peek at the buffalo trucks that transport the animals to Kathmandu’s slaughterhouses. It is guaranteed to put you off buff momos for good. See how goats are unloaded at the Balkhu market, or how a dozen chicken tied to the backs of motorcycles are taken to the butchers with their beaks scraping the asphalt.Read also:<a href="https://www.nepalitimes.com/?p=35036&amp;preview=true" target="_blank" rel="noopener">Creatures of Culture</a><a href="https://www.nepalitimes.com/?p=35114&amp;preview=true" target="_blank" rel="noopener">Waiting till the cows come home,</a> Kunda DixitWhen faced with criticism about blood sacrifices, Nepalis get defensive and go on the offensive, pointing at factory farms and assembly line abattoirs in industrialised countries. True, the west has perfected the art of mass killing of animals for food. But there is now a backlash: cruelty to animals and the climate impact of eating meat have led to a dramatic increase in vegetarianism and veganism in Europe in the past five years. Ten percent of Britons are vegetarian, and one-third of women there do not eat meat.This Tihar, Nepalis will worship crows, cows, dogs and bulls by garlanding and offering them treats. The festival is imbued with deep spiritual meaning, much of which has been lost. Despite this reverence of animals, Diktel Municipality last month beat dozens of community dogs to death with iron rods. In Kathmandu, dogs scalded with boiling water or acid land up in shelters every day. While we worship our pets on Sunday, hundreds will be so frightened by firecrackers they will get lost trying to get as far away from the explosions as possible.We will worship cows on Sunday even as thousands of abandoned street cattle roam the East-West Highway. A ban on cow slaughter and the lynchings of Muslim traders across the border in Uttar Pradesh has meant that cattle forsaken by their Nepali owners are now homeless.Read also:<a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=35133&amp;preview=true" target="_blank" rel="noopener">Saving Nepal’s last wild dogs,</a> Yadav Ghimirey<a href="https://www.nepalitimes.com/?p=35155&amp;preview=true" target="_blank" rel="noopener">A dog with altitude,</a> Sonam Choekyi LamaSacrificing goats during Dasain is a ritual, and the meat is consumed during family feasts. But how does one explain the mass bloodletting of sacrificial animals at Kot? Or the unconscionable slaughter of thousands of buffaloes, goats, fowl and even pigeons at Gadimai? It is difficult to justify carnage on such a horrifying scale in the name of tradition, killing for the sake of killing just so the wishes of those doing the killing are granted. In 2015, the Supreme Court ruled that the Gadimai slaughter was indefensible cruelty, but next month organisers once more expect 6 million visitors to the temple in Parsa, and more bloodshed.It is worth pondering whether all this fatalistic brutality hardens us as a society. Forget animals -- look at how we treat fellow humans. State neglect condemns mothers and infants to die unnecessarily, corruption in the medical sector is a death sentence to many, our highways are in a perpetual state of murderous disrepair.In 10 years 17,000 Nepalis were killed at the hands of fellow Nepalis, and no one has atoned for the unspeakable crimes against humanity committed then. Mohamad Aftab Alam got away with ordering eight supporters to be burnt alive in a brick kiln to destroy evidence of bomb-making in the 2008 elections. This week, video emerged of an excavator driver in Baitadi swinging his boom at people, injuring eight of them.For festivals to really represent the triumph of good over evil, we have to go back to the basics of what all religions teach us: compassion, tolerance, non-violence against sentient beings and a reverence for nature.<h2>Ten Years Ago</h2>The front page of<a href="http://archive.nepalitimes.com/issue/473" target="_blank" rel="noopener"> Nepali Times #473 of 23-29 October</a> 2009 reads as if it could have been written this week:At a time when India-China relations are returning to near-Cold War levels, the Maoists have been trying to play Nepal’s two giant neighbours off against each other. Having concluded that Delhi masterminded its downfall from government in May, Maoist chairman Pushpa Kamal Dahal has been cosying up to China. Beijing, which was happy with the way the Maoists cracked down on pro-Tibet activities while they were in power, seems to be only too happy to play along. Dahal’s visit to China last week, during which he also met briefly with Premier Hu Jintao, was either perfect, or disastrous, timing.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141156/636a60df9c7e80680e056ea0jpeg.jpg" alt="" width="321" height="500">We don’t know what China’s message was, but sources say Beijing underlined the need for stability in Nepal and Premier Hu was worried about the growing political drift in Kathmandu. What Dahal’s visit seems to have done is made the Indians even more paranoid, and to conclude that the Maoists can’t be trusted.

In an Animal Farm

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.