<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141144/636d00c19c7e80680e0a35f4jpeg.jpg" alt="" width="3686" height="2690"/><figcaption>Photo: CREATIVE COMMONS</figcaption></figure>Nearly two years after the global <a href="https://www.nepalitimes.com/banner/behind-the-masks/" target="_blank" rel="noopener noreferrer">Covid-19 pandemic</a> began, there has been a revival of traditional Ayurveda medicines that boost the human immune system. While some dismiss herbal treatments as quackery, even allopathic doctors are now prescribing Ayurvedic formulations.During the pandemic, treatment protocols have shifted from treating the immediate symptoms to preventing multiple infections and better management of <a href="https://www.nepalitimes.com/banner/had-covid-beware-of-long-covid/" target="_blank" rel="noopener noreferrer">post-recovery complications</a>.Seriously sick patients do need hospitalisation, oxygen or even ventilators, and modern medicine is good at saving lives. However, it is in boosting immunity, preventing infections and whole-body healing that natural herbal medicines serve an important function.“I do not treat Covid-19, but I do get a lot of patients who have recovered from the disease but continue to experience long-term symptoms,” says Piyush Bajracharya who runs an Ayurveda clinic in Patan. “And there are a lot of people who want to boost their immune system to protect themselves from the virus.”Read also: <a href="https://www.nepalitimes.com/latest/the-good-doctor/" target="_blank" rel="noopener noreferrer">The good doctor</a>, Lisa ChoegyalAyurveda has evolved over 3,000-years-old in the Subcontinent, and was recognised by the World Health Organistion at its Alma Ata conference in 1978. The Himalaya, and especially Nepal, is considered a rich repository of <a href="https://www.nepalitimes.com/here-now/the-grass-is-greener-in-nepal/" target="_blank" rel="noopener noreferrer">medicinal plants</a> – a belief enshrined in the Ramayana where Hanuman rips out an entire mountain when he could not find the exact herb to treat his master, Laxman, who was wounded in battle.“Modern medicine has its roots in our ancestral knowledge of plants and herbs, passed from one generation to another,” says noted physician Sundar Mani Dixit, adding that the most modern drugs in cardiology and painkillers are derived from the herbs with the Himalaya being the treasure trove of <a href="https://www.nepalitimes.com/here-now/saving-the-treasure-trove-of-nepals-orchids/" target="_blank" rel="noopener noreferrer">medicinal plants</a>.Expensive hospital bills and costly medicines with serious side effects in addition to the rise of new infections and lifestyle diseases have meant that patients and doctors are increasingly turning to natural plant-based treatment systems.There is now a <a href="https://www.sciencedirect.com/science/article/pii/S1756464620303959" target="_blank" rel="noopener noreferrer">growing body of research</a> that proves the efficacy of various medicinal herbs, the ingredients of Ayurveda, in the treatment of influenza, dengue, arthritis, herpes, inflammatory bowel diseases and coronaviruses. Many more plants and their formulations are proven immune enhancers.“Over the millennia our ancestors led a population oriented natural research in the laboratory of the world, but now scientific methods have polished and refined the development of these treatments,” adds Dixit.Despite being a seasoned allopathic practitioner, Dixit himself prescribes to his patients herbal formulations to modulate immune responses. They include Terminalia chebula (Harro), Moringa oleifera, (Nim, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4296439/" target="_blank" rel="noopener noreferrer">Tulsi</a>), Piper longum (Pipli), Picrorhiza kurroa, (Kalmegha), black pepper, turmeric, Chirayita, Black elder, (Ashwagandha), Tinospora cordifolia (Gurjo) and Liquorice root (Jethimadhu).To be sure, Ayurveda has its limitations. It cannot cure specific conditions quickly as modern drugs do, and is more effective against primary diseases of the respiratory system and digestive tract such as cold and cough, flu, gastritis, indigestion, as well as allergies.It can also treat initial stages of <a href="https://www.nepalitimes.com/latest/why-do-so-many-nepalis-have-high-blood-pressure/" target="_blank" rel="noopener noreferrer">blood pressure</a>, diabetes, cholesterol, triglyceride and liver diseases, as well as cancers specific to an organ not belonging to a system such as uterus or breast.There is also a common misconception that there are no side effects to Ayurveda medicines, but this is not true -- only multi-vitamins or supplements can be taken without consultation.“If you self-medicate without referring to the doctors on dosage and duration, chances are high that they will harm you, even if they are common kitchen spices, which has often been the case during this pandemic,” explains Piyush Bajracharya.This week at <a href="https://vaidyakhana.gov.np" target="_blank" rel="noopener noreferrer">Singha Durbar Vaidyakhana</a>, the state-run Ayurveda outlet, the sales counter had run out of some of the more popular immune boosters like Chawanpras and Triphala because of an increase in demand for them since the pandemic.“It is a matter of further research whether traditional medicine directly inhibit Covid-19 infections, but they do increase one’s overall immunity and in case of an infection, people have less severe symptoms,” says Sabari Sah, head of the Singha Durbar Vaidyakhana.“After all, Ayurveda is a science of healthy living,” he adds. “If people follow the basic rules of a healthy diet, exercises and positive thinking, then more often than not you won’t fall sick.”<h2>Your friendly neighbourhood Baidya</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141144/636d00c49c7e80680e0a35f5jpeg.jpg" alt="" width="350" height="263"><figcaption> </figcaption></figure>Yogendra Shrestha Baidya is the 23rd generation of traditional healers in his family. His training began at 10, when he started learning to find, grind and mix various herbs and spices in his ancestral home in Patan’s Sundhara neighbourhood.“We’ve continued the Baidya tradition for centuries, but I can’t see my children following in my footsteps,” says the 59-year-old, whose surname denotes his profession. “The times are changing even as the demand for our medicines has increased.”Ayurveda seems to be moving from the hands of traditional healers like the Baidya who passed their knowledge from one generation to the next, to trained Ayurveda professionals. It is not restricted to a particular clan anymore.Read also: <a href="http://archive.nepalitimes.com/article/nation/the-return-of-the-baidyas,1623" target="_blank" rel="noopener noreferrer">The return of the baidyas</a>, Sonia AwaleDuring the course of an hour-long conversation at his small shop stocked with his own herbal mixtures, and with the rich aroma of many herbs, Baidya got a call on his mobile from a father worried about his child’s dysentery. Next, a pharmaceutical agent dropped by for 20 bottles of digestive tablets.Three masked patients with various medical conditions waited on a bench for their Ayurveda mixtures to be prepared. One of them was a 66-years-old patient who had bicycled for one hour from Hatiban to get medicines for his digestive disorder. He also wanted a consultation for his wife who has high blood pressure and <a href="https://archive.nepalitimes.com/article/nation/diabetes-in-south-asia,3018" target="_blank" rel="noopener noreferrer">diabetes</a>.“She is tired of taking so many tablets, I thought we could switch to Nepali medicine,” he said. But Yogendra Shrestha Baidya advises him to have his wife continue using allopathic drugs. “Since you have already started on those medicines, it is not advisable to discontinue that.”https://www.youtube.com/watch?time_continue=2&amp;v=apDiIbQMYhY&amp;feature=emb_logoThe new proliferation of herbal treatments and Ayurveda has also meant malpractice, people with fake credentials claiming to have a cure for chronic diseases have taken to social media to propagate them.The Nepal government now allows only certified professionals to operate Ayurveda clinics, but this also risks discouraging the Baidya clans where knowledge has been passed down through many generations of traditional healers.“We need policies to regulate the malpractices but I can’t go back to medical school now,” says Baidya, who is a botanist by education. “Genuine traditional healers should get to practice, I have the practical knowledge and I should be allowed to treat my community.”Sonia Awale

Sonia Awale

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Medicine goes back to its roots

<figure><img width="2082" height="1266" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141132/636cfdb69c7e80680e0a0bfdjpeg.jpg" alt=""/><figcaption>The newly developed ayurvedic 'centre of excellence' is nestled beneath the forests of Nagarjun, just half an hour from Kathmandu. The centre is a legacy of ayurvedic doctor Rishi Ram Koirala who passed away last week.</figcaption></figure>I had an appointment with Rishi Ram Koirala the day before he suffered his fatal heart attack. Last week Nepal has lost one of its most celebrated ayurvedic practitioners, the founder and medical director of the renowned <a href="http://The newly developed ayurvedic 'centre of excellence' is nestled beneath the forests of Nagarjun, just half an hour from Kathmandu. The centre is a legacy of ayurvedic doctor Rishi Ram Koirala who passed away last week." target="_blank" rel="noopener noreferrer">Ayurveda Health Home</a>.
It was a fortuitous blessing that I was able to see him one last time, taking a friend for a consultation. Whilst we sipped glasses of tulsi tea in the clinic’s waiting area heavy with the scent of oil and powder, I struggled to find any bone fide complaints to waste his precious time.
Dr Rishi’s kind brown eyes seemed to sparkle with health. “It’s been years,” he greeted me. Wearing a voluminous green gown, blue hair net, surgical gloves, double masks and a face shield, the eyes were all I could see of his slight, sprightly figure. But enthusiasm and gentle wisdom shone through the clear plastic sheet.
“You are lucky to be so healthy at your age.” I muttered something about preferring to lose some weight and could feel his dismissive hidden humour: “It must be your inner nature. How are <a href="https://www.nepalitimes.com/opinion/dads-deception/" target="_blank" rel="noopener noreferrer">Tenzin and the boys</a>?” We caught up with family news and updates on his practice. I wish now the I had thought to ask him how he was.
Dr Rishi took my pulse in his little office across the courtyard of the Dhapasi clinic, flanked by two of his junior doctors similarly adorned in full PPE, learning skills from the master. On the walls were colourful renditions of the naked body showing ancient pressure points, chakras and energy channels. Stacked on shelves were rows of red-topped glass jars containing mysterious medicines of essential natural ingredients, herbs, tablets and dried plants.
“I’ve been busy, still lecturing all over the world via Zoom, and I’ve just submitted a paper on ayurvedic policy for the National Planning Commission and Ministry of Health.” His eyes sparkled. 
“And we are now producing our own medicines from home-grown herbs and plants on our land beyond Nagarjun. We are expanding our factory to process these, taking advantage of the government restrictions on importing pharmaceuticals and trying to break the stranglehold of the cartels exporting all <a href="https://www.nepalitimes.com/here-now/the-grass-is-greener-in-nepal/" target="_blank" rel="noopener noreferrer">Nepal’s best medicinal plants</a> to India.”
Dr Rishi’s reputation as a skilled and compassionate doctor, ayurvedic master and yogic practitioner with three decades of experience, extends across the globe. With degrees from Banaras and Kathmandu, his <a href="http://archive.nepalitimes.com/article/nation/the-return-of-the-baidyas,1623" target="_blank" rel="noopener noreferrer">ayurvedic expertise</a> was based on nearly 12 years of intensive studies. 
I ask about Covid-19, and Dr Rishi explains that ayurvedic remedies are particularly effective in its prevention, building up the body’s immunity, and to restore strength during the recovery period. Their 12 doctors and over 30 professionals do not provide healthcare for infectious diseases.
First established in 1995, the Dhapasi clinic was expanded in 2001 as a joint venture with Marilies Foerster, a German nurse who Dr Rishi describes as “our sister”. The extensive family partnership is anchored by Badri Koirala his younger brother, and their sons and daughters, some of whom have enriched the enterprise by combining conventional western medical qualifications with their knowledge of traditional techniques.
Dr Rishi and his family’s pioneering <a href="http://ayurvedacenternepal.com" target="_blank" rel="noopener noreferrer">panchakarma centre</a> in Nepal is unique in South Asia. Considered to be the essence of ayurveda, panchkarma is a holistic process designed for maintaining and supporting inner harmony. Consisting of cleansing, detoxifying, immune-enhancing, rejuvenating, and curative measures against disease, it restores harmony and balance to the mind, emotions and senses. Treatment programmes impart the benefits of pure natural products and holistic healing techniques developed from the subtle ancient knowledge of the Vedas.
Many foreigners and Nepalis have benefitted over the years with courses of therapy prescribed by Dr Rishi’s team of devoted trained professionals. Pre-pandemic groups of Europeans and Americans would arrive with a range of ailments, often staying for several weeks at a time. 
“Foreigners of 122 nations have taken our services, including high-ranking officials from Russia and the Middle East,” he said.
In anticipation of the return of this loyal international following, the Ayurvedic Health Resort is being developed as an ‘ayurvedic centre of excellence’ on a forested slope behind Nagarjun. Bordering on the national park and community forest, this sylvan retreat consists of a hotel of 28 rooms with wholesome vegetarian food and dedicated space for treatments, teachings, <a href="https://www.nepalitimes.com/opinion/yoga-in-the-time-of-covid-19/" target="_blank" rel="noopener noreferrer">meditation and yoga</a>. 
Nurseries and flower beds cultivate the finest quality herbal plants, and a production unit processes oils, potions and remedies according to the most efficacious medical tradition.
Huge picture windows at the comfortable new Nagarjun centre overlook the dense green cradle of forest that reverberates with life, birds call during the day and insects by night. An unseen river gurgles below the steep drop off below my balcony, and the occasional aircraft passes overhead. 
During our monsoon visit mists threaded the valleys, tendrils of clouds draped the hilltops and rain hammered the roof. Badri explains the building reflects the principles of vastu shastras, and it exudes peace and serenity from the moment we arrive. The weekend prescription plan of curative activities includes abhyanga massages, body scrubs, steam chambers, the oil flow of shirodhara and <a href="https://www.nepalitimes.com/review/reclaiming-singing-bowls/" target="_blank" rel="noopener noreferrer">Himalayan singing bowl</a> therapy.
Kathmandu Valley is a spiritual melting pot of great healers. From all points of the compass the ancient therapeutic traditions converge in the shadow of the Himalaya – Ayurveda from India, Tibetan and Chinese. Some practitioners are a well-kept secret, revealing themselves only when necessary and only to those in need.
Rishi Ram Koirala was a quiet modest man, but his <a href="http://archive.nepalitimes.com/news.php?id=10642#.YSHLzi2B2fQ" target="_blank" rel="noopener noreferrer">healing skills</a>, diagnostic expertise and extraordinary knowledge were widely respected throughout the world. His legacy will live on with the Ayurvedic Health Resort enterprise, but he himself will be sorely missed by many.

Lisa Choegyal

The good doctor

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>.

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