<figure><img width="3600" height="3000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814114/636a53ce9c7e80680e05236ejpeg.jpg" alt=""/><figcaption>External Affairs Minister of India S Jaishankar meets with Prime Minister KP Oli in Kathmandu on Wednesday.</figcaption></figure>The overnight visit to Nepal by India’s Minister for External Affairs S Jaishankar was an effort to reboot relations with Nepal, deeply wounded by New Delhi’s <a href="https://archive.nepalitimes.com/article/editorial/autopsy-of-a-blockade%20,2863" target="_blank" rel="noopener">five-month border blockade in 2015</a>. India never acknowledged it as a blockade, and effectively pushed the narrative that it was an internal Nepal problem. But the truth eventually got out.A BJP leader for the first time has publicly acknowledged it was a “foolish thing” to do. During a visit to Kathmandu last month, senior BJP leader Subramaniyam Swami was quoted as saying the blockade had been carried out “on the advice of bureaucrats”, and that <a href="https://www.nepalitimes.com/opinion/tsu-namo-2-0-and-nepal/" target="_blank" rel="noopener">Prime Minister Narendra Modi</a> was now addressing the “hurt feelings” among Nepalis.That could have been what Jaishankar was trying to do in Kathmandu, with Pashupati chandan conspicuous on his forehead all day Thursday. In meetings with Nepali leaders across the political spectrum, his message was that India wanted to re-establish a “new era of partnership” with Nepal. That is a desirable sentiment, and Nepal should respond in kind. After all, we can choose our friends, but not our neighbours.If resetting ties was the intention, however, perhaps Jaishankar was the wrong person to send to Kathmandu. Nepal’s public sphere and the press this week were replete with references to his previous visit here exactly four years ago. Nepal had just suffered a devastating earthquake, and the government was trying to fast track the new Constitution even though it did not satisfy the demands of Madhesi activists. Ensuing violence in the Tarai claimed 56 lives. <figure><img width="1800" height="1200" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814114/636a53d29c7e80680e05236fjpeg.jpg" alt=""><figcaption>S Jaishankar who was in Kathmandu for the 5th Joint Commission on his way to airport for his flight back on Thursday.</figcaption></figure>We know now that Jaishankar was rather blunt in his sometimes heated meetings with Nepal’s leaders, who refused to listen to his suggestion to postpone the Constitution by two weeks. Soon after he flew back to New Delhi, border checkpoints with India were sealed. The blockade lasted till January 2016 – imports of fuel, food and essentials stopped, as did earthquake relief.Jaishankar’s return this week was for many a bitter reminder of 2015. A hashtag campaign on the Nepali Twittersphere did not exactly go viral, but got irreverent shares. Jaishankar brought a message from Prime Minister Modi to Nepal’s Prime Minister KP Oli that said he wanted India-Nepal relations to reflect the ‘closeness and affinity’ between the two peoples.The message added that leaders of the two countries trust each other, and they should build on this to complete past cooperation agreements that are languishing. They should move ahead in the spirit of mutual benefit. Oli reportedly reciprocated the sentiments and promised to work together to restore ties.What was left unsaid was New Delhi trying to get public support for <a href="https://www.nepalitimes.com/editorial/kashmir-and-kathmandu/" target="_blank" rel="noopener">its actions in Kashmir</a> from the neighbourhood. In fact some Indian outlets misleadingly reported that all of India’s neighbours had done so, when they hadn’t. If they value stability in Nepal, BJP leaders in India must also refrain from trying to pressure Nepal on its secular <a href="https://www.nepalitimes.com/here-now/nepals-constitution-3-years-later/" target="_blank" rel="noopener">Constitution</a>. We crossed that bridge, and there is no going back.Although the formal reason for this visit was a meeting of the Nepal-India Joint Commission, attention throughout the two days was elsewhere. For example, the bilateral <a href="https://www.nepalitimes.com/here-now/eminently-beneficial-for-india-and-nepal/" target="_blank" rel="noopener">Eminent Person’s Group</a> that presented its report last year recommending reform in ties and amendments to the 1950 Rana-era, India-Nepal friendship treaty is still in limbo.It is also not in Nepal’s <a href="https://www.nepalitimes.com/editorial/national-interest-or-nationalism/" target="_blank" rel="noopener">national interest</a> to keep rocking the boat, and irritating New Delhi. It may be tempting at election time, and Prime Minister Oli did cash in on anti-Indian sentiment after the blockade for his landslide in the 2017 elections, but he more than anyone else, should know that this is counterproductive. Leaders in Kathmandu never really made an effort to understand India’s security sensitivities, and its need for regulating water from our rivers.Nepal’s strategy in <a href="https://www.nepalitimes.com/here-now/nepal-now-has-to-balance-not-just-india-and-china-but-also-the-west/" target="_blank" rel="noopener">dealing with its larger neighbour</a> should be guided by pragmatism, and not petulant stubbornness. We should do our homework before negotiations and work in the spirit of give and take. On the other hand, Indian leaders must also realise that heavy-handedness has never worked. Under-handedness also does not because ultimately it will hurt India.India’s rulers may have behaved like boors in the past, but our own <a href="https://www.nepalitimes.com/editorial/toxic-pseudo-nationalism/" target="_blank" rel="noopener">nationalistic bravado</a> is not backed up by an ability to stand on our own feet. A state may be weak, but it must compensate for its smallness with smarts. We must fix our domestic issues ourselves, and understand Indian concerns to negotiate for the concessions we need. <h2>10 years ago this week</h2> The factional fighting in the NCP this week has seen a re-alignment. Sound familiar? Here is the Backside column by the <a href="http://archive.nepalitimes.com/news.php?id=16210#.XV53a-MzaUk" target="_blank" rel="noopener">Ass</a> from <a href="http://archive.nepalitimes.com/news.php?id=16236#.XV56jOMzaUk" target="_blank" rel="noopener">Nepali Times #465</a> of 7-13 August 2009:‘JNK now thinks he’s waited long enough and is making his move against MKN and KPO. In so doing, he is either knowingly or unknowingly playing right into the hands of the Mau Mau, who can only get into govt if they manage to split the Eh-Malaise. The party is already running parallel district committees with pro and anti-JN cliques. With Upadro Yadav and Jhallu both speaking Maoist lingo, it is pretty clear what PKD meant by "strategic offensive" before he jetted off to the Woolwich Town Hall.PKD is off to Moscow, where he will meet Comrade Vladimir Ilyich in his mausoleum. But a pilgrimage to Georgia to pay respects to Uncle Joe’s birthplace was scrapped because Russia is massing troops for another putsch into Georgia. It’s a good thing PKD has gone to the Land Where Communism Collapsed. Maybe it’ll be an eye-opener.’<a href="http://archive.nepalitimes.com/news.php?id=16236#.XV56jOMzaUk"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814114/636a53d59c7e80680e052370jpeg.jpg" alt="" width="506" height="809"></a>

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JAISHANKAR RETURNS

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4ecf9c7e80680e04fcd6jpeg.jpg" alt="" width="1400" height="933"/><figcaption>Pic: BIKRAM RAI</figcaption></figure>When Nepal’s politicians were asked to list their assets, many disclosed property, bank balances and jewelry. Among his possessions, Nepal’s well-read Foreign Minister Pradeep Gyawali declared that he owned 2,500 books. The soft-spoken Gyawali now has the responsibility of steering the country’s foreign policy at a time of heightened geopolitical polarisation in the region. Sound bites from an interview this week:<ul><li>Nepal used to be a back-bencher in international fora. Now we are being seen and heard. <a href="https://www.nepalitimes.com/here-now/to-davos-with-hammer-and-sickle/" target="_blank" rel="noopener">The Prime Minister’s participation at Davos</a> and hosting the <a href="https://www.nepalitimes.com/banner/bimstec-facelift/">BIMSTEC Summit</a> in Kathmandu has raised Nepal’s international profile.</li> <li>It could be that some cannot digest Nepal’s higher international engagement and are uneasy about it. But there is no question of Nepal ever joining any strategic alliance.</li> <li>We look at our own national interest, and we also try to make sure that our decisions and involvement do not hurt the interests of our neighbours, development partners or other friendly countries.</li> <li>Our long-term foreign policy goals have not changed, but we are trying to adapt to new geopolitical realities by analysing them and formulating new policies of engagement.</li> <li>We want to benefit from the economic growth and development of our two neighbours.</li> <li>We are conveying to China and India that a prosperous and stable Nepal is also in their interest.</li> <li>We are telling our development partners that Nepal is a safe country for foreign investment, from where it is easy to export to other countries.</li> <li>We are very sensitive to the fact that 4 million of our young men and women are working abroad and through diplomacy we want to ensure their security, rights and respect.</li> <li>In the 1990s and 2000s many Latin American countries went nearly bankrupt and had to be bailed out. It was not called a ‘debt trap’, none of them had loans from China.</li> <li>If it is in the national interest, we can take not just aid, but also loans. But if it is against our interest, we will not even take assistance.</li> <li>The suspicions about the Indo-Pacific is a storm in a tea cup. Our Chinese friends are not really worried, they are sure that Nepal will not allow anti-Chinese activities.</li> <li>We do not lean more or less on any one side. We don’t try to compare the relationship we have with our two neighbours.</li></ul>"Nepal has spread its wings"Full Interview with Minister of Foreign Affairs Pradeep GyawaliNepali Times: There have been transformative changes in international diplomacy and geopolitics. But Nepal seems to be stuck.Pradeep Gyawali: Every country has a set of long-term goals, and some flexible policies that change with the times. Nation states have permanent values like sovereignty, territorial integrity, dignity and independence. These beliefs do not change with changes in governments, they do not even change with a change in governance systems. Our adherence to the concept of panchashila, or the United Nations declaration does not change. That is why we also look into our fixed goals and immediate policies based on changes in international and regional relations. We have adapted to new realities from the standpoint of our national interest.Will this be enough for Nepal to reach its goal of being a middle-income country in the next ten years?We have to keep in mind global changes, and specifically the geopolitical, economic, demographic changes in Asia. We have to adapt to the fact that our two neighbours are moving forward rapidly. For this, we do not play favourites, or let our relations with one country be at the expense of another. We want to benefit from the economic growth and development of our two neighbours. We are conveying to China and India that a prosperous and stable Nepal is also in their interest. We are telling our development partners that Nepal is a safe country for foreign investment, from where it is easy to export to other countries. We are very sensitive to the fact that 4 million of our young men and women are working abroad and through diplomacy, we want to ensure their security, rights and dignity. And we will extend our involvement and cooperation with multilateral agencies.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4ed29c7e80680e04fcd7jpeg.jpg" alt="" width="1400" height="1161">The Indian media and intelligentsia are accusing Nepal of tilting towards China.Both our neighbours are equally important for us. We are not tilting more or less in any direction. We don’t compare our relationship with either of them.  Neither of our neighbours should forget that Nepal has neighbours on both sides, and ask us to deal only with one of them.There is lot of talk about Nepal falling into the Chinese debt trap.I keep reminding people that in the 1990s and 2000s many Latin American countries nearly went bankrupt and had to be bailed out. It was not called a ‘debt trap’, none of them had loans from China. Greece still has not been able to come out of its economic crisis, and I don’t think they are in trouble because they had Chinese investments. These accusations are not based on an objective economic analysis, but a negative attitude towards the rise of China and its political system. Besides, Nepal has the ability to decide what is in its national interest and what is not.  If it is in the national interest we can take not just aid, but also loans. But if it is not in our interest, we will not even take assistance.And China seems to be suspicious of Nepal’s involvement in the Indo-Pacific Alliance. Can a Nepal that is already a member of the <a href="http://archive.nepalitimes.com/regular-columns/chinese-ambassador-addresses-bri-conference/" target="_blank" rel="noopener">BRI</a> risk being involved in the Indo-Pacific?The suspicions about the Indo-Pacific is a storm in a tea cup. Our Chinese friends are not really worried, they are sure that Nepal will not allow anti-Chinese activities. The first official visit by a Nepali foreign minister to Washington recently, and the first American visit at the level of the foreign minister to Nepal have added a new milestone to Nepal-US relations. The Japanese foreign minister visited Nepal after many years, we have also deepened our relations with India, the EU and other development partners.  Nepal has increased its involvement in the international arena. The Prime Minister’s recent Europe visit has sent the message that Nepal is no longer what it used to be in South Asia, it has spread its wings. It could be that some cannot digest Nepal’s higher international engagement and are uneasy about it. There is no question of Nepal ever joining any strategic alliance. We look at our own national interest, and we also try to make sure that our decisions and involvement does not hurt the interests of our neighbours, development partners or other friendly countries.What are the main achievements during your tenure?During the conflict, Nepal’s economic development suffered a setback, it affected our foreign policy and we became an arena for proxies. Now, with the end of the political transition and political stability, we are fixing our mistakes and moving ahead.  Nepal used to be a back-bencher in the international fora. Now, we are being seen and heard. The Prime Minister’s participation at Davos, his one-on-one meeting with G-20 leaders sent the message that Nepal should now be heard on the world stage. Recently, the head of the IFC said that Nepal was a ‘rising star’, so that must carry some weight.We have also restored our relations with our neighbours, after overcoming difficult times. Others have now realised that they must take Nepal along. Despite obstacles, we hosted the <a href="https://archive.nepalitimes.com/article/nation/connecting-Bangladesh-China-India-Nepal,2966" target="_blank" rel="noopener">BIMSTEC Summit</a> and the <a href="https://www.nepalitimes.com/here-now/labour-pain/">Colombo Process Ministerial Conference</a> in Kathmandu. I would consider the past year quite successful.Interview by Hari Prakash Chand and Binu PokhrelRead Also:<a href="https://www.nepalitimes.com/here-now/nepal-has-more-self-respect/" target="_blank" rel="noopener">“Nepal has more self-respect”</a>, Nepali Times<a href="https://www.nepalitimes.com/editorial/yam-between-3-boulders/" target="_blank" rel="noopener">YAM BETWEEN 3 BOULDERS</a>, Editorial<a href="https://www.nepalitimes.com/here-now/nepal-now-has-to-balance-not-just-india-and-china-but-also-the-west/" target="_blank" rel="noopener">Nepal now has to balance not just India and China, but also the West</a>, Bhairaja Pandey<a href="https://www.nepalitimes.com/here-now/eminently-beneficial-for-india-and-nepal/" target="_blank" rel="noopener">Eminently beneficial for India and Nepal</a>, Ajit Baral

"Nepal is now seen and heard"

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

Global warning bell in Belém

Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday, protesting what they have called the interim government’s inadequate efforts to address the demands of the GenZ movements. The demonstrators also sought to bar the UML from gathering at Maitighar, where party chair K P Oli was expected to announce its Youth Volunteer Force on Friday. The organisers consequently relocated the event. Friday’s demonstration at Maitighar comes as UML and GenZ representatives agreed to sit down for talks in Simara, where a curfew was imposed this week after youth protestors and party cadres clashed near the airport as demonstrators sought to stop UML leaders from flying in for a political event to Simara from Kathmandu.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5.png" data-media-id="editor_0" data-image-id="20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5" data-rendition-name="original" width="2160" height="1440" loading="lazy" alt="GenZ Maitighar"> <figcaption>Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday. Photos: SUBASH SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7.png" data-media-id="editor_1" data-image-id="20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7" data-rendition-name="original" width="2160" height="1439" loading="lazy" alt="GenZ Maitighar"> </figure>  &nbsp;Nepal’s interim government is increasingly cautious about the nation’s sensitive security situation in the lead-up to the 5 March election, as evidenced by pro-monarchy businessman Durga Prasai’s midnight arrest earlier this week over his inflammatory remarks as he called for protests this month. On Thursday, the Supreme Court ordered the government to present Prasai before the court within 24 hours.&nbsp; As it stands, the UML’s inauguration of a youth collective amidst its disregard for the demands of Nepalis for party reforms and a change in leadership highlights party chair and former PM K P Oli’s continued lack of remorse for the excesses of 8 September.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9.png" data-media-id="editor_2" data-image-id="20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9" data-rendition-name="original" width="2560" height="1707" loading="lazy" alt="UML Youth Volunteer Force NT"> <figcaption>The UML launched its Youth Volunteer Force on Friday. Photos: SUMAN NEPALI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad.png" data-media-id="editor_3" data-image-id="20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad" data-rendition-name="original" width="2560" height="1706" loading="lazy" alt="UML Youth Volunteer Force"> </figure>  Families of those killed and injured on 8 September have demanded that the ousted PM and home minister be held accountable for state brutality.&nbsp; This week, Human Rights Watch published a <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">comprehensive report</a> concluding that security forces fired indiscriminately on youth-led protestors on 8 September.&nbsp; The human rights watchdog urged the Sushila Karki-led interim government to investigate the excessive use of force as well as arson, vandalism and mob attacks on individuals on 9 September. The government has created a judicial commission to inquire into the deaths of 76 people over two days of protests.&nbsp; “The recent violence in Nepal included serious human rights violations, and those responsible should be held accountable, whether they are security forces or political actors,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch.&nbsp; She added: “The government should ensure that the investigations are independent, time-bound, and transparent, and that no one found responsible for breaking the law is unfairly protected from proper prosecution.” HRW’s investigation was based on testimony from 52 witnesses, victims, journalists, healthcare workers, politicians, and sources close to security forces. Researchers also verified photos and video footage shared on social media and with researchers; and visited the scenes of protests, properties subjected to arson and vandalism, and hospitals.&nbsp; A police officer said that officers opened fire with lethal force five minutes after the District Administration Office declared an emergency curfew around Parliament. Witness accounts and analysed footage did not show grave and imminent danger to life that would justify the intentional use of lethal force, stated the human rights watchdog in the report.&nbsp; The protestors and witnesses identified security forces who fired live ammunition at the protestors by their uniforms as members of the Armed Police Force (APF) and Nepal Police’s Special Task Force (STF). &nbsp; “They literally aimed at us and started shooting,” said one witness who sheltered behind a barricade as police continued shooting.&nbsp; A retired senior police official said police had failed to follow procedures for dispersing protests and using lethal force.&nbsp; Pathologists at a Kathmandu morgue told HRW that they determined 35 cases of death caused by “high velocity gunshot wounds” to the head, neck, chest, or abdomen.&nbsp; The witness recounted being taken into custody along with 33 other protestors by STF officers in riot gear, and said that police police personnel beat him with batons. Detainees were threatened and their IDs destroyed. Several witnesses said that the mob attacks on businesses, politicians, media companies, and educational institutions were very targeted, noting the absence of security personnel on 9 September as arson and violence raged across the capital.&nbsp; Some suggested that the violence may have been instigated by infiltrators associated with various political movements.&nbsp; On Discord, the platform where a significant number of demonstrators organised, participants noted that while there were calls for peaceful movement in the days leading up to the protest, some on the platform advocated for violence.&nbsp; Human Rights Watch has said that any credible allegations of criminal acts contributing to the violence must be investigated.&nbsp; Said Ganguly: “The authorities should recognise that widespread impunity for human rights violations in the past helped enable the violence that occurred this time in Nepal. It is crucial to reverse the decades-long tendency by successive governments in Nepal to bury investigations and stall prosecutions, and to bring about accountability and security sector reform.”

Security forces targeted protestors disproportionately: HRW

As people move out of Nepal’s trans-Himalayan districts, their faiths migrate with them to the cities and all over the world. The ancient animist faith of Bon Po predates the advent of Buddhism in Tibet, and its last remaining priests and devotees are found in villages like Lubra in Mustang and Samling in Dolpo. But as those villages empty out, Bon centres can now be found as far afield as Kathmandu, New York and Tokyo. The first Triten Norbutse Monastery was founded in Tibet in the 14th century by the Bon Master Shen Nyima Gyaltsen. Its monastery in Nepal is below the forested hills of Ichangu on the western outskirts of Kathmandu.&nbsp; Many are surprised to hear that there is a Bon centre in Kathmandu, and that it is located so close to Swayambhu. This Triten monastery was established by Yongzin Tenzin Namdak Rinpoche only 40 years ago to cater to adherents of the faith who lived in the capital. True to its reverence for nature, the shrine is verdant, with plants and flowers amidst a contrasting backdrop of Kathmandu’s ugly urban sprawl below. The monastery practices Bon culture and passes on teachings to students as well, who after completing 15 years of study graduate to become ‘Gese’.&nbsp; It is believed that Bon Po was brought to Nepal from Tibet by Tonpa Shenrab Miwoche. Over the centuries, Bon and Buddhism have become syncretic in Dolpo and Mustang, despite the differences in their belief systems. Followers worship nature and consider the human body, speech and mind as jewels. The human body is said to be composed of five elements: earth, water, fire, air, and the cosmos.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5.jpg" data-media-id="editor_0" data-image-id="20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="The Bon Po way of life NT"> </figure>  The Bon faith was much more widespread during the reigns of Nyathi Chenpo, the first king of Tibet to Namri Srongchen, the 32nd king. But it was after King Srongchen Gompo that Buddhism started making inroads on the plateau, and spread also in the Himalayan rimlands. There are also Bon followers in Humla, Jumla, Baglung, Mugu, Kaski and Chitwan, as well as in the United States and 50 other countries, indicating the movement of people within Nepal and outside.&nbsp; The Bon religion believes in reincarnation and that everything, including positive and negative thoughts are a result of past life karma. Buddhism focuses more on attaining Nirvana, a state of no suffering, where the subject is released from all his/her karmas. Bon has also inducted some Tantric practices and rituals, some of which are in parts similar, yet still different from Buddhism.&nbsp; “In Buddhist culture, circumambulation of shrines is clockwise, but in Bon culture, circumambulation is in an anticlockwise direction,” explains Chhiring Lama of Triten Norbutse Monastery. “The main Bon mantra is Om Ma Tri Mu Ye Sa Le Du, while followers of Buddhism chant Om Mani Padme Hum. Buddhism emphasises enlightenment by meditation and moral behaviour, while Bon beliefs centre on nature and ancestor worship, and placating the spirits. In religious texts, it is mentioned that there were 1,008 Buddhas throughout time. Tonpa Shenrab is believed to be the 8th Buddha, and Bon practitioners are guided by his teachings contained in 140 sacred writings known as Kangyur and 300 more scriptures known as Katen.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07.jpg" data-media-id="editor_1" data-image-id="20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="The Bon Po way of life NT"> </figure>  “We worship nature and its elements and the prayer flags contain religious texts and when the wind blows through it we consider it a prayer,” says Chhiring Lama. “We also worship ponds for the water and consider fire as a sacred element as well. We also consider snakes sacred, therefore worship ponds, considering them as the place of residence.” The interdependence between human beings and nature is clearly depicted through such traditions and practices which carry relevance today as the planet faces the crisis of climate breakdown.&nbsp; Important gods worshiped include Satrig Ersang, Shenlha Okar, Sangpo Bumtri, and Tonpa Shenrab Miwoche. But what is similar to Buddhism is an offering known as ‘torma’, a cone shaped ritual offering made from flour dough. Many Bon faithful are vegetarian, or abstain from meat during festivals.&nbsp; Over time, the rise of Buddhism in Tibet and beyond overshadowed Bon, pushing many of its practices to the margins. Yet, the tradition continues to live on, carried by those who see in it a deep connection to nature, the spirit world, and the roots of Tibetan culture.&nbsp; In many ways, the endurance of Bon is a reminder that even the quietest faiths hold timeless truths, waiting to be remembered and valued. Followers of Bon today are far fewer, and the knowledge about its traditions is not as widespread.&nbsp; “As time goes on, people adopt rituals and cultures that are more convenient to their daily lives,” says Chhiring Lama. “But that means forgetting or leaving behind one’s indigenous and ancestral roots.”