<figure><img width="1448" height="1084" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07cb9c7e80680e0a5fddjpeg.jpg" alt=""/><figcaption></figcaption></figure>The long-overdue privatisation of state-owned Nepal Airlines has become a political hot potato, but with Sher Bahadur Deuba of the Nepali Congress  (NC) now taking over from K P Oli the loss-making carrier may have a better chance at divestment.The last days of the Oli administration was rife with speculation that the airline’s board was preparing to offload some of its shares to the Yeti Group, which many believe was close to the former prime minister. The once reputable Royal Nepal Airlines has been <a href="https://archive.nepalitimes.com/article/business/saving-nepal-airlines-with-fleet-route-expansion-drives,1983" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/business/saving-nepal-airlines-with-fleet-route-expansion-drives,1983&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNF5qYb0YVxWCZVTlHKKotcgNYG6tA">mired in scandals and mismanagement</a> ever since the restoration of democracy in 1990. Political parties in government used the carrier <a href="http://archive.nepalitimes.com/news.php?id=8325#.YPYcpy9w0Wo" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8325%23.YPYcpy9w0Wo&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNHD8BAxuQoXlVdZxA0xt-jaNMU5OA">as an employment agency</a>, and <a href="http://archive.nepalitimes.com/news.php?id=6057#.YPYcsi9w0Wo" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D6057%23.YPYcsi9w0Wo&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNGlRzw66RDzay3rYY4reIB_J0w9Mw">pocketed kickbacks</a> on aircraft leases.Now, despite strong opposition from employee unions and some in government, the Covid-19 pandemic and its economic fallout has left Nepal Airlines Corporation (NAC) no other option. The flag carrier lost over Rs5 billion last year as flights were grounded and domestic passenger volume shrank by 73%, and international passengers went down by 86%. These losses could be a mortal blow to the company, which has racked up a debt of Rs47 billion, and never registered a profitable year in its 63 years of existence. Yet, even when flying through severe turbulence, NAC has somehow stayed afloat because of multiple government bailouts totalling Rs31 billion over the years. Now, NAC’s situation has become so desperate that the government’s benevolence is wearing thin. As prime minister in 2019, Oli rebuffed pleas for government subsidy from NAC executives saying the carrier had to learn to stand on its own feet.“Currently NAC is a costly white elephant,” says Surya Raj Acharya, an expert in development and infrastructure policy. “The practice of the government always having to rescue public sector companies is wrong.” <figure><img width="2398" height="1274" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07ce9c7e80680e0a5fdejpeg.jpg" alt=""><figcaption> </figcaption></figure>The airline’s debts have skyrocketed because of its <a href="https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNHc9M-QzUx-aLxc_hv4jM7jW2eX8Q">purchase of four brand new Airbus jets</a> before the pandemic hit, as well the induction of six Chinese-made turboprops which have been grounded. The government currently shoulders all of NAC’s debts, pays off all its loans and is also the company’s guarantor and manager. Partially privatising the carrier would ensure that the government handles only its own share, while hopefully making the company competitive and profitable. It would also lessen the revolving-door politically-influenced appointments and interference in management.A corporate culture of <a href="http://archive.nepalitimes.com/blogs/kundadixit/2015/11/02/prepared-for-takeoff/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/blogs/kundadixit/2015/11/02/prepared-for-takeoff/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNHsSUGrq815MKIc8NUhg5qXAnHMGg">meritocratic employment and reward</a>, more professional management and improvement in reliability and service could turn the airline around. Just relying on flying Nepali <a href="https://www.nepalitimes.com/here-now/nepals-diaspora-comes-to-the-rescue/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-diaspora-comes-to-the-rescue/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNFEqcX5_KoN3Wu-tOA1cixqTJ9orQ">overseas workers and the diaspora</a> would guarantee a strong load factor.Even so, plans to privatise and transition the company from full state ownership to only majority control have been<a href="https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNFl7bnK4oPk2Ux-1HdtKChxHP-rGA"> repeatedly shelved </a>over the years even as other state-owned companies were privatised. NAC employees padlocked offices and went on strike on 6 July after the Board of Directors sent management letters and draft regulations for privatisation to the Ministry of Culture, Tourism and Civil Aviation on  27 June. In response, on 11 July NAC senior management released a notice categorically denying any move towards privatisation.  <figure><img width="796" height="524" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07d19c7e80680e0a5fdfjpeg.jpg" alt=""><figcaption> </figcaption></figure>Government hesitation to act and employee agitation stem from a history of bitter experiences. Nepal’s post-1990 liberalisation boom saw the then-ruling NC initiate a wave of privatisation, albeit with disastrous results. Most newly-privatised companies, such as Gorakhkali Tyre, Bhrikuti Paper, Harisiddhi Bricks, and Bansbari Leather Shoes were unable to cope with the ownership change and folded. As a result, the state has shied away from concrete action on privatisation even if it would remove immense financial burdens. Now, with the NC back in government, there is a chance Nepal Airlines de-nationalisation could be in the cards — even though the worst scandals in the carrier’s history have involved NC politicians.To be sure, Nepal has had privatisation success stories too, with the likes of Nepal Telecom, Nepal Bank, Electricity Generation Company, Rastriya Banijya Bank and Timber Corporation Nepal all in profit, and they have improved their service after switching to a company model.The airline’s Board of Directors move to privatise was based on a report by the Corporation Reform Committee in mid-September 2019 to then Aviation Minister Yogesh Bhattarai. ‘Preparations must be made to convert the Corporation into a limited company under prevailing laws,” the report said, while also recommending restructuring ownership so that 51% of the airline remained in government hands. ‘Once the company is set up, ownership must be structured and shares distributed in such a way that it gives ⅓ of total paid-up capital to those responsible for management while sharing the rest among industries in tourism, local banks and financial agencies, company employees, the government and the general public,’ the Advisory Committee’s report notes.  <figure><img width="733" height="471" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07d49c7e80680e0a5fe0jpeg.jpg" alt=""><figcaption> </figcaption></figure>Member of the NAC Board Buddhi Sagar Lamichhane says: “Our understanding is that the corporation cannot survive under the existing structure, and managerial capacity. However, the government has the final say on any decision.”But the state’s backtracking has dismayed pro-privatisation executives. As early as 2002, another committee had recommended that the NAC switch to a company model with only majority government ownership.A new task force was then set up to review that report and present an action plan with the National Planning Commission’s Shankar Sharma. This task force presented its suggestions in 2002, backing the recommendation that the airline should either be privatised or dissolved. A report by the International Civil Aviation Organisation (ICAO) recommended in October 2004 that NAC be split into two companies for domestic and international air travel. Other committees followed in 2005 and 2010 recommending that NAC be scrapped with its employees, contracts, capital and liabilities shifted to a new Limited Liability Company (LLC) and registered with the Company Registrar’s office. Like all the committees before them, these reports just gathered dust.  <figure><img width="1752" height="1146" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07d69c7e80680e0a5fe1jpeg.jpg" alt=""><figcaption> </figcaption></figure>But perhaps the most promising move towards privatisation came in 2017 when the government actively sought strategic partners from the US, Australia, France, Australia and Germany. Only Lufthansa Consulting from Germany responded, and the Nepali side managed to bungle even that deal, with the Council of Ministers taking too long to give the Finance and Tourism Ministries the go-ahead.“Strategic partnerships are a must if the flagship is to be saved,” says former Finance Secretary Shankar Prasad Adhikari. “There is no reason for the government to keep bailing out a company that perennially haemorrhages tax-payers money like Nepal Airlines.” There are lessons to be learnt from Air India which accumulated losses of a staggering INR5 trillion, as the government finally moves to private the flag carrier.  However, experts caution that with the global downturn in aviation, even privatisation may not save Nepal Airlines. Even so, cutting costs, streamlining the fleet, and launching a strategic recovery plan could still save the carrier. But it would be unrealistic to expect that without privatisation and better management.

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Nepal Airlines privatisation still stuck

<figure><img width="1050" height="700" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110814110/636a53a79c7e80680e052361jpeg.jpg" alt=""/><figcaption>Photo: IKRISHNA PAUDEL</figcaption></figure>Yogesh Bhattarai is Nepal’s 37th Tourism Minister in 41 years. He has taken the place of Rabindra Adhikari, who was <a href="https://www.nepalitimes.com/banner/the-last-journey/" target="_blank" rel="noopener">killed in a helicopter crash</a> in April, and wants to continue projects his predecessor was keen on, like Nijgad Airport. Bhattarai spoke withNepali Times this week about the prospects of Visit Nepal Year 2020, rescuing Nepal Airlines and speeding up construction at Pokhara and Bhairawa airports.Nepali Times: You now head a ministry infamous for frequent changes and wheeling-dealing. How will you clean up its image? Yogesh Bhattarai: As the 37th Tourism Minister my appointment is unusual, and I have a pile of extraordinary tasks to complete. I will only step down after we have accomplished them. The centres of power in this country are the government and the <a href="https://www.nepalitimes.com/banner/dangerous-driving/" target="_blank" rel="noopener">Nepal Communist Party</a>, so there is no room for any wheeling-dealing.How are the preparations for Visit Nepal 2020? Since there was no minister for a long time, the preparations are not satisfactory. Infrastructure has not taken off. The challenge is to speed it up, and within two weeks we will release a detailed workplan laying out the responsibilities of the government, the ministry, the department, Nepal Tourism Board, organising committees and embassies for the Visit Nepal Year.The <a href="https://www.nepalitimes.com/latest/crowd-funding-from-mt-everest/" target="_blank" rel="noopener">last Mt Everest climbing season</a> was controversial. What are your plans for future expeditions?Much of it was intended to give Nepal’s mountains a bad reputation. There are some weaknesses on our side, but the <a href="https://www.nepalitimes.com/banner/most-days-its-not-so-crowded-on-mt-everest/" target="_blank" rel="noopener">weather window of just three days led to the crowding</a>. Like every year there were casualties and we are concerned about reducing them. Some agencies are also <a href="https://www.nepalitimes.com/banner/expeditions-brings-down-11-tons-of-mt-everest-trash/" target="_blank" rel="noopener">cleaning up the garbage on Everest</a>. We will issue new climbing rules and from the next season, only trained liaison officers will be employed.Read also:<a href="https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/" target="_blank" rel="noopener">Nepal Airlines has new planes, but no new plans</a>, Sharaj Ojha<a href="https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/" target="_blank" rel="noopener">Keeping Nepal Airlines airworthy</a>, Sharad OjhaWhere has the investigation on <a href="https://www.nepalitimes.com/banner/heli-rescue-fraud-tarnishes-nepals-image/" target="_blank" rel="noopener">fake helicopter rescues</a> gone? The investigation committee under the general secretary has made some recommendations. Based on that document, further investigations are underway and <a href="https://www.nepalitimes.com/banner/nepal-trekking-industry-in-damage-control-mode/" target="_blank" rel="noopener">the culprits</a> will be punished.The number of tourists has increased, but their spending has not. This year, average spending per tourist came down to $44 from $55. But transactions via informal channels have been reduced.You said you would make Nepal Airlines “wow worthy”. What did you mean?We have to make <a href="https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/" target="_blank" rel="noopener">Nepal Airlines</a> fly high again and turn it into a flag carrier we can be proud of. There are problems — we know what they are. The company should be in profit, and pay its debts. We cannot achieve that in two months, and there is no silver bullet. We need shock therapy.Mismanagement and political interference are blamed.  I don’t wish to blame anyone personally. I don’t think anyone intended for <a href="https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/" target="_blank" rel="noopener">NAC</a> to collapse. But as I said, we are looking at a dramatic turnaround in management. Those who can handle the change will stay, those who can’t will have to go. If management can convince the government that the company is financially viable, then it will invest.You seem to be all for building <a href="https://www.nepalitimes.com/here-now/economy-ecology-of-nijgad-airport/" target="_blank" rel="noopener">Nijgad Airport</a>. What about the trees?  I am not here to cut trees, but we need to build the airport. Its investment modality will be decided after a discussion with Investment Board Nepal. We will talk with the Ministry of Forests, and local governments will work on resettlement. It is a national pride project, so it also requires political commitment. We aim to lay the foundation stone by November.Nepal’s aviation is still under the EU blacklist, even if ICAO has delisted us from the list of countries with safety concerns.  As per ICAO, a country should score a minimum of 60 points to pass the safety test — we have 66 points and have been delisted. But as far as the EU is concerned, a team is visiting Nepal for a safety audit. We believe that Nepal will soon be taken off the blacklist.

"Unusual appointment … extraordinary tasks"

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

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>.

Flouting rules caused Saurya tragedy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

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Walking, working, worshipping in Patan