<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110915110/636bb2789c7e80680e07bae4jpeg.jpg" alt="" width="930" height="620"/><figcaption></figcaption></figure>Period stigma has long blighted the lives of young women and girls in Nepal, but the <a href="https://www.nepalitimes.com/here-now/ensuring-menstrual-hygiene-during-nepal-lockdown/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/ensuring-menstrual-hygiene-during-nepal-lockdown/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNFRijVaIWllHBMsdGej-K1GWY9sUw">pandemic is making things worse</a>. If action isn’t taken to help girls menstruate safely, hygienically, and with dignity, Nepal’s <a href="https://www.nepalitimes.com/here-now/nepals-superwomen-beat-superstition/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-superwomen-beat-superstition/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNGthfvaonsA70ekl3khwSP5i87ZrA">gradual progress in tackling taboos</a> and stigma around menstruation risks being undone.Families are spending long days, weeks, months indoors, and the continued lockdown is reinforcing harmful practices and stigma around menstruation. We have all come to realise the importance of routine hand-washing, but hygiene does not stop there. Menstruation does not stop during a pandemic, nor does the intense stigma associated with it in Nepal.Even without the pressures of the lockdown, many girls and women in poor, rural parts of Nepal simply do not have access to clean running water and soap. They also do not have menstruation pads, and even when they do many find themselves <a href="https://www.nepalitimes.com/editorial/that-time-of-the-month/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/that-time-of-the-month/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNGkUXe1S5cwSBXCUsDHIGPMJFT67w">facing stigma in the household</a>, making their day-to-day lives all the more difficult.In communities where our Voluntary Service Overseas (VSO) works, <a href="https://www.nepalitimes.com/opinion/tipping-point-on-menstrual-banishment-in-nepal/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/tipping-point-on-menstrual-banishment-in-nepal/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNFwh8i-WtKzK-Z0JIQog2-ixKuTOw">chhaupadi</a> still persists despite the government’s ban on so-called <a href="https://www.nepalitimes.com/banner/their-songs-from-the-forest/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/their-songs-from-the-forest/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNEa0nTiimV03Cl0KYM5qIyPLMx5Vw">‘period huts’</a>, and a three-month prison sentence and fine for  forcing girls to menstruate in huts. But some are still sent to caves and other locations which put them at risk.To remain ‘clean’, girls are forbidden to touch communal objects in the household. Menstruation untouchability is still practiced and promoted, and even the Nepali word <a href="https://www.nepalitimes.com/here-now/menstruation-is-not-private-business-it-is-everyones-business/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/menstruation-is-not-private-business-it-is-everyones-business/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNE4ZcZ-SxFHOZnulUF2iMVhGjGCLA">nachhuni</a> literally means ‘untouchable’.Women and girls are separated and not allowed to touch and enter kitchen and prayer room. They cannot touch male members of the household, and there is much mental pressure by the family and community members to maintain untouchability norms and practices. Failure to abide by them sometimes leads to ostracisation.At the individual level, it is a painful experience and there are long-term psychological effects of period stigma on girls’ self-esteem, especially among trans and disabled women and girls who face double marginalisation. Some of these women make up our frontline healthcare workers during the time of Covid-19, leading to increased anxiety during the lockdown.Added to all this, the economic crisis is leaving young women and girls unable to afford menstruation products, particularly as prices for sanitary pads have spiked.Last year, the government committed to providing every girl with sanitary pads to help them  continue to go to school in a dignified way and succeed in studies. This year, we reached many girls with the products, helping them stay in school and realise their dreams.This year the government has also allocated funding to provide sanitary pad distribution to schoolgirls. But with schools closed across Nepal for nearly six months now, the goal of reaching every schoolgirl with sanitary pads has been badly interrupted. We are now hearing that girls are resorting to makeshift solutions, risking infection and complications.The pandemic has disrupted every facet of life, but the fight to realise women’s rights to menstruate safely and with dignity must continue. Under the lockdown, VSO is providing hygiene kits to some 4,000 girls across rural Nepal, especially in areas where menstruation taboos and stigma persist.The kits include soap, chlorine wash, underwear and a hygiene kit bag. Prior to the lockdown, VSO also trained over 2,000 young women and girls across four districts to make reusable sanitary pads, a skill which many have put to good use under lockdown.The <a href="https://www.wsscc.org/media/resources/government-nepal-calls-dignified-menstrual-hygiene-management" data-saferedirecturl="https://www.google.com/url?q=https://www.wsscc.org/media/resources/government-nepal-calls-dignified-menstrual-hygiene-management&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNHLw7xJvPvYa4obERECweTvlx_SxA">Menstrual Hygiene Management (MHMPA) Alliance Nepal</a> is a national network supporting over 80 initiatives to tackle period stigma in the country which works to shape policy and campaign for change. Its activities are constrained under the lockdown, but the mission to end period stigma across Nepal will not stop.The Nepal government has shown its commitment to end period stigma and other forms of gender inequality. While we fight Covid-19 together, we must also use this moment to ensure the promises we have made to young girls are kept throughout the pandemic and beyond.With the virus continuing to spread in Nepal and schools not opening any time soon, we are calling on national and local governments to honour their original commitment and ensure girls receive free menstrual products even when they are not in school.We have come a long way in improving the rights of women and girls in Nepal, legislating for increased participation of women in politics, while improving their rights in the home. Tackling period stigma is a fundamental part of moving towards a more equal society, and overcoming the barriers women face in public life.We can be <a href="https://www.nepalitimes.com/here-now/nepals-superwomen-beat-superstition/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-superwomen-beat-superstition/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNGthfvaonsA70ekl3khwSP5i87ZrA">proud of the progress we have made</a> in challenging harmful practices like chhaupadi – and by working together as communities, civil society and government we can make sure that the pandemic does not hinder, or even reverse, our progress.We must use this moment to leverage the partnerships we have built in recent years between civil society and government to ensure that <a href="https://www.nepalitimes.com/banner/communicating-to-remove-menstrual-taboo/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/communicating-to-remove-menstrual-taboo/&amp;source=gmail&amp;ust=1599021346631000&amp;usg=AFQjCNGZh3CqDbtQwCnrdB1XdP0dbuVDag">women and girls are not left behind</a> today, and can thrive when the pandemic eventually ends.Geeta Pradhan is the global lead gender adviser at Voluntary Service Overseas (VSO). She has worked in the Asia-Pacific and Africa.

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Pandemic deepens period poverty

<figure><img width="931" height="620" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914118/636ba68f9c7e80680e07372djpeg.jpg" alt=""/><figcaption>All photos: VSO</figcaption></figure>Despite <a href="https://www.nepalitimes.com/banner/kathmandu-valley-back-to-lockdown/" target="_blank" rel="noopener noreferrer">restrictions on gatherings</a>,  women across Nepal mark Tij this week, the festival of women, on Friday. Increasingly, Tij songs are less about lamenting gender justice and more about striving for equality.One manifestation of entrenched patriarchy in Nepal is menstrual taboo, an extreme form of which is chhaupadi, the practice in parts of Nepal of the <a href="http://archive.nepalitimes.com/article/nation/women-speaking-out-against-chaupadi,3518" target="_blank" rel="noopener noreferrer">monthly banishment</a> of women to an outhouse during their periods.In a country where period stigma is still prevalent young women, adolescent girls are facing extra barriers under lockdown to maintain their period in a safe and dignified way.During the pandemic girls are mostly confined to the household, and during their periods are forbidden to touch communal objects in the household. Added to this, the economic crisis hitting these communities is leaving young women and girls unable to afford period products.Under a unique <a href="https://www.vsointernational.org/our-work/inclusive-education/system-strengthening/sisters-for-sisters" data-saferedirecturl="https://www.google.com/url?q=https://www.vsointernational.org/our-work/inclusive-education/system-strengthening/sisters-for-sisters&amp;source=gmail&amp;ust=1597908281944000&amp;usg=AFQjCNE0R0d69AjenpkQ1LnCoIEncENunQ">Sisters for Sisters' Education</a> started by the UK-based VSO (Volunteer Service Overseas), big girls in rural Nepal who were already mentoring younger ones have stepped in during the lockdown to guide them about using and accessing period products.<a href="https://www.nepalitimes.com/?p=21465&amp;preview=true" target="_blank" rel="noopener noreferrer">Nepal’s superwomen beat superstition</a>, Aruna Upreti <figure><img width="932" height="620" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914118/636ba6919c7e80680e07372ejpeg.jpg" alt=""><figcaption>Muni Kumari Gupta is a ‘Big Sister’ who has been mentoring 11 little sisters in her community in a village in Parsa, the district in Nepal hardest hit by the Covid-19 pandemic. “These days we are all living in a fear of the coronavirus,” Muni Kumari says, “ever since the first case was found in our village, there has been more fear.”</figcaption></figure>Muni Kumari Gupta is a ‘Big Sister’ who has been mentoring 11 little sisters in her community in a village in Parsa, the district in Nepal hardest hit by the Covid-19 pandemic.“These days we are all living in a fear of the coronavirus,” Muni Kumari says, “ever since the first case was found in our village, there has been more fear.”Because the lockdown has been re-imposed in Parsa, Muni Kumari keeps in touch with her little ‘sisters’ through the mobile phone telling them to wear masks, maintain distance and keep elderly relatives safe.<a href="https://www.nepalitimes.com/banner/communicating-to-remove-menstrual-taboo/" target="_blank" rel="noopener noreferrer">Communicating to remote menstrual taboo</a>, Sewa BhattaraiWhen the lockdown eased for a few weeks in July, she visited the homes of her ‘sisters’ to coach them in school lessons. Most schools in Parsa had been converted into quarantine centres for returnees from abroad, and had been closed.Muni Kumari herself takes classes through the radio and joins her ‘sisters’ to learn English through the remote radio classes.“It has been very difficult to communicate properly with girls and their families. I was allowed to visit a few families near my home so that I could teach them how to wash hands and use a face mask properly,” says Muni Kumari, who had been trained in making reusable sanitary pads, and she shares this skill with family members and girls in the community.“During the lockdown, we were unable to buy sanitary pads at the shops. Therefore, the skills helped us to make our pads at home,” she adds.<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/pad-power-nepal,4147">Pad Power</a>, Ziyu LinAnjali Patel is now in Grade 10, and is thankful that she has her ‘Big Sister’, Muni Kumari Gupta to help her navigate the dangers of the pandemic, the shortages of everything during the lockdown, and setbacks to education because of the closure of schools.“My Big Sister is the closest person I can share my problems with,” says Anjali, “she lives nearby and is always available to guide us and the other small sisters. She helps me with my studies, and tells me how to stay safe during the pandemic.”When Anjali was 10, her parents made her do household chores so she missed school a lot. Her parents also did not find school to be that important for a girl child. It was Muni Kumari who convinced her parents that Anjali should get an education.<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/removing-menstrual-shame,4148" target="_blank" rel="noopener noreferrer">Removing menstrual shame</a>, Clara Hare-Grogg <img width="933" height="620" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914118/636ba6949c7e80680e07372fjpeg.jpg" alt=""><img width="931" height="619" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914118/636ba6969c7e80680e073730jpeg.jpg" alt="">Anjali Patel is at home listening to a remote classroom on the radio, and helping her nephews with school lessons.After the lockdown started in March, Anjali found it difficult because she could not meet her mentor face-to-face. But Muni Kumari called her on the phone and gave her confidence, instructing her how to protect herself and the family against the virus.The Sister for Sisters program is supported by UK Aid through VSO and has distributed sanitary hygiene packs to nearly 1,200 families in Surkhet, Lamjung, Dhading and Parsa districts of Nepal. The kits include soap, towel, toothbrush, reusable sanitary pad, underwear, nail cutter, hygiene kit bag and liquid chlorine. The project is implemented by Global Action Nepal and Aasaman Nepal. Nitu Gupta is also a ‘Big Sister’ for 13 smaller girls in an adjoining village in Parsa district. As elsewhere in Nepal, the young girls cannot go to school, their families are in a precarious economic situation, and there is the need to protect themselves from the spread of the coronavirus.<a href="https://www.nepalitimes.com/editorial/that-time-of-the-month/" target="_blank" rel="noopener noreferrer">That time of the month</a>, EditorialNitu was already helping to educate her 13 ‘sisters’ before the lockdown, and she has been carrying on that work to make up for the closure of schools.  “During the lockdown, our economic situation became much more difficult, and the girls were mentally affected because there have been suicides in the community,” Nitu says.Sisters for Sisters helped girls like Nitu with remote training through radio to stay safe during the pandemic. She kept in touch with the girls under her care, teaching them to wash hands frequently. <a href="https://www.nepalitimes.com/here-now/menstruation-is-not-private-business-it-is-everyones-business/" target="_blank" rel="noopener noreferrer">“Menstruation is not a private business, it’s everyone’s business”</a>, Reeti KC <figure><img width="932" height="620" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914118/636ba6999c7e80680e073731jpeg.jpg" alt=""><figcaption>Nitu Gupta is another mentor in the Sister for Sisters project, raising awareness about Covid-19 and supporting the education of girls who are out of school in Bahubari of Parsa district. Here she is handing over a hygiene kit to the mother of one of her little 'sisters'.</figcaption></figure>She adds, “The most challenging has been the lack of access to reading materials and menstrual products during the lockdown. But we have been able to provide the families with hygiene kits. This has helped the girls stay clean and comfortable.” Joya Parvin,18, is also a ‘Big Sister’ with 13 younger girls under her charge, but during the lockdown she has only been able to keep in touch with four of them who live nearby. She says the biggest challenge for the girls in her group is accessing menstrual products, soap and sanitser and masks.When she first became a ‘Big Sister’ her main role was to convince parents from her Muslim community to send their daughters to school. But now that schools are closed, he mentoring is different – to make sure the girls keep up with their studies through radio, and have the necessary support to maintain hygience and stay safe.<a href="https://archive.nepalitimes.com/regular-columns/GUEST-COLUMN/blood-sisters-menstruation,839" target="_blank" rel="noopener noreferrer">Blood sisters</a>, Sangita Thebe-Limbu <figure><img width="930" height="620" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914118/636ba69b9c7e80680e073732jpeg.jpg" alt=""><figcaption>Joya Pravin showing the little 'sisters' under the charge how to make their own sanitary napkins.</figcaption></figure>One of the little ‘sisters’ in the group that Joya mentors is Rami Khatun, and she says she was seized with panic when Parsa became a coronavirus hotspot in July. “But she gave us tips on how to stay safe, and when the shops ran out of sanitary pads, Joya taught us how to make our own,” says Rami.Rami spends her lockdown days at home helping with chores, and taking care of her nephews. Even though the schools are closed, Joya used to visit when the lockdown was eased. But now that are restrictions of movement, she calls frequently and Rami listens to the radio program to improve her English.Read also: <a href="https://www.nepalitimes.com/opinion/tipping-point-on-menstrual-banishment-in-nepal/">Tipping point on menstrual banishment in Nepal</a>, Marty Logan

Ensuring menstrual hygiene during Nepal lockdown

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

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

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

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>.