<figure><img width="1050" height="655" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4659c7e80680e073666jpeg.jpg" alt=""/><figcaption>Prime Minister K P Oli launching the sale of shares for the Trisuli B hydroelectric project in March 2019, the first in the government’s Nepal’s Water, Nepalis’ Investment initiative. Energy Minister Barshaman Pun is on the right. Photo: PMO</figcaption></figure>Nepal’s hydropower sector, already stymied <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-hydroelectricity-sector-gets-covid-19-shock/&amp;sa=U&amp;ved=2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAEegQIAxAC&amp;usg=AOvVaw0B_tYwmRm1tHBUVUnLifjc" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-hydroelectricity-sector-gets-covid-19-shock/%26sa%3DU%26ved%3D2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAEegQIAxAC%26usg%3DAOvVaw0B_tYwmRm1tHBUVUnLifjc&amp;source=gmail&amp;ust=1596609376589000&amp;usg=AFQjCNEMkbfjV65U5ipi9fjYZ4myWul1Bg">by decades of construction delays </a>and budget constraints, is seeing its flagship Nepal’s Water, Nepalis’ Investment initiative pushed back further due to this year’s destructive monsoon rains and the economic fallout of the COVID-19 crisis.The initiative was part of the government’s ambitious masterplan to generate 15,000MW in ten years from 21 hydroelectric projects, and raise the income of Nepali shareholders in the process.“Nepal will have an energy surplus and see its economy grow, while the projects will bring the public quick rewards and allow them to prosper as well,” said the Energy Minister while launching the initiative in March last year.  <figure><img width="1500" height="839" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4689c7e80680e073667jpeg.jpg" alt=""><figcaption>Some of the proposed projects under the Nepal’s Water, Nepalis’ Investment which will offer shares to the public to invest in: 1st row, left-right: Ghunsa Khola (72MW), Simbuwa Khola (70MW), Tamakosi-5 (96MW) Upper Trisuli 3-B (27MW). 2nd Row: Kimathangka Arun (482MW), Upper Arun (725MW), Ikhuwa (30MW), Arun 4 (372MW) 3rd row: Budi Gandaki Gwar Khola (60MW), Budi Gandaki Prok 1 (100MW), Budi Gandaki Prok 2 (240MW) Budi Gandaki A (75MW)</figcaption></figure>It was a bold target and a challenging task to sell shares to the public, but it was an attempt to make up for lost time on power projects delayed by the 2015 earthquake and the Indian Blockade. However, no one could have predicted that the country would face an even more serious crisis this year with the global pandemic.While landslides and flash floods this monsoon as well as the COVID-19 lockdown have taken a year off construction schedules, the global economic downturn is also expected to reduce the public's ability to invest in shares and attract foreign joint ventures in the hydropower projects. Even so, CEO Chhabiraj Pokharel of the Hydropower Investment and Development Company Limited (HIDCL) says the plan is to start construction on all 21 projects in the next four years so as to meet the intrim target of generating 3,500MW in five years.Despite his optimism, only one of the projects, the Upper Trisuli-3 (60MW), which went into operation in November, has been commissioned in the past year-and-half since the initiative was launched amidst much fanfare by Prime Minister Oli.The 111MW Rasuwagadi and 57MW Upper Sanjen are nearing completion, and have released shares to employees. Another project is halfway, but the other 14 have not gotten off the ground.  <figure><img width="1631" height="550" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba46b9c7e80680e073668jpeg.jpg" alt=""><figcaption>Rasuwagadhi Project site (111MW) on the Trisuli River, where construction has begun. </figcaption></figure>Even though many of these projects were delayed due to existing bureaucratic and technical hurdles, the government is blaming the COVID-19 crisis. Says Madhu Prasad Bhetuwal, convenor of the Nepal’s Water, Nepalis’ Investment initiative: “All the projects had been pushed back by six months already due to the COVID-19 crisis, and another six months because of the rainy season.”Nevertheless, the government’s plan is to begin construction on Upper Arun (725MW), Kimathangka Arun (482MW), Phukot Karnali (492MW), Tamakosi-5 (96MW), Chainpur Seti (201MW), and Jagadulla (157MW) as soon as the monsoon is over. Of these, Tamakosi-5 is putting shares up for sale to the public, now that its engineering and design work is complete. The modalities for the Rs33 billion Bheri-Babai Diversion Multipurpose Program are also complete. This project will irrigate 51,000ha in the eastern Tarai, while also generating 48.6MW of electricity. Five percent of the shares of this project will be open to local people, Karnali provincial government will have 20%, the project itself will have 26%, and the central government will have majority shares of 49%.  <figure><img width="1500" height="834" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba46e9c7e80680e073669jpeg.jpg" alt=""><figcaption>Bheri-Babai tunnel that will irrigate 51,000ha in the western Tarai, and generate 48MW of electricity.</figcaption></figure>The government’s plan is that 51% of the Nepal’s Water, Nepalis’ Investment initiative will be funded by the government, while 49% will have the public’s investment. Of this, 70% will be loan financed, while 30% will be paid for by investment in equities. Of that 30%, a little more than half will be bought up by the government while 49% will be public.Government agencies are also being directed to allocate funds for the initiative. The Employees’ Provident Fund, Citizens Investment Fund, HIDCL, Nepal Telecom, National Insurance Institute, Nepal Police, Nepal Army and the Armed Police Force have all been directed to invest Rs1-6 billion per year in the initiative. The total cost of the 21 projects is estimated to exceed Rs700 billion -- which is equal to more than half the annual national budget of Nepal. Banks and financial institutions have a 10% ceiling on hydropower investment in their total portfolio, and this is enough to only fund 50MW production every year. This means the most serious obstacle to the initiative will now be the funding crunch. This has been exacerbated by the fall in government revenue due to the pandemic, as seen in this<a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/&amp;sa=U&amp;ved=2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAFegQIARAC&amp;usg=AOvVaw0IyIrqaRrWGvlcvL74WQUS" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/%26sa%3DU%26ved%3D2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAFegQIARAC%26usg%3DAOvVaw0IyIrqaRrWGvlcvL74WQUS&amp;source=gmail&amp;ust=1596609376589000&amp;usg=AFQjCNF97_uq5VhqvzbTa4EA79zdsQsuyQ"> fiscal year’s budget.</a> The government could rely on foreign loans and multilateral creditors, but they are also affected by the global recession.Normal hydropower regulations only allow for shares to be released once construction is half-complete. Under the provisions of the initiative, shares and IPOs (Initial Public Offerings) can be released once 10% of project funding is used.  <figure><img width="600" height="677" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4759c7e80680e07366ajpeg.jpg" alt=""><figcaption>Construction site of the Upper Trisuli 3B (37MW), one of the projects delayed by the COVID-19 lockdown.</figcaption></figure>Convenor Bhetuwal says construction of the 21 hydropower projects were deliberately staggered, keeping in mind the rise in nationwide energy demand. He adds: “Generating 3,500MW at once will lead to a glut in the market, may overwhelm consumers and waste energy, that is why projects are going into production in a phase-wise manner.” This is a legitimate concern, because national demand for electricity has dropped during he lockdown, prompting Nepal Electricity Authority Director Kul Man Ghising to call out the government on its U-turn on encouraging demand for electricity consumption, <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/&amp;sa=U&amp;ved=2ahUKEwjm3tT5g__qAhWd8HMBHRiHBzkQFjAAegQIBRAC&amp;usg=AOvVaw1WVWH_378BaBmM7FzPie46" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/%26sa%3DU%26ved%3D2ahUKEwjm3tT5g__qAhWd8HMBHRiHBzkQFjAAegQIBRAC%26usg%3DAOvVaw1WVWH_378BaBmM7FzPie46&amp;source=gmail&amp;ust=1596609376589000&amp;usg=AFQjCNHFj7LD-yfyCCJ0ZeVWqLFX6NH2zw">including a hike on e-vehicle taxes. </a>

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Generating electricity (and cash) for Nepalis

<figure><img width="680" height="453" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912114/636b8a0a9c7e80680e06b21bjpeg.jpg" alt=""/><figcaption>Nepal Police making an arrest using multifunctional rescue and arrest device during the lockdown. Photo: RSS</figcaption></figure>The calls started coming at 10:30 at night on 30 March, a week into the coronavirus lockdown. It was Jib Narayan Chaudhary, and he sounded frantic. Knowing I was a journalist, the day labourer was calling for help from the Koteswor traffic police office where he and 22 other co-workers were being held by police who would not let them travel to their homes in Saptari district. He said he had a police travel permit.I called the Koteswor police station, and the duty in-charge Sudarshan Thapa said: “People do not understand that lockdown means lockdown. You cannot leave the Valley.”<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/walking-3-days-to-get-home/" target="_blank" rel="noopener">Walking 3 days to get home</a>, Sanjay MishraIn fact, Thapa said the rules had changed that day, and a permit did not suffice anymore. Travellers also needed a yellow card from the CDO office. Chaudhary and his friends did finally get the card from the Lalitpur District Office and got home on 2 April, after surviving on dry noodles and little money during their long bus journey.“If we had known that the government would extend the lockdown, we would have made other arrangements. It is always poor people like us who suffer the most in any national emergency,” Chaudhary told me.We were at the Lalitpur District Office (LDO) in Man Bhawan where there were many kinds of people caught in a lurch by the change in travel rules. Jit Jung Rana Magar from Sindhupalchowk, looked fed up. He needed to leave because his wife is alone with an infant and a two-year-old daughter. “I have to be there for them. The office asked me to get all the related documents yesterday but now they need more documents,” Rana Magar said, looking lost. <a href="https://www.nepalitimes.com/latest/lockdown-guidelines/" target="_blank" rel="noopener">Lockdown guidelines</a>In a corner stood 31-year-old Chinna Maya Tamang who had just lost her 65-year-old mother in Dolalghat that morning. “I have to go home for my mother’s death rites, I don’t know what will happen with the new rules,” she said. By 10 in the morning, it had turned into a crowd at the LDO, while the policemen at the gate tried to separate them for physical distancing. Some were screaming to allow them in, others shouted through their masks to be allowed in. Suresh Thapa, the policeman was trying, not successfully, to calm the crowd. He said: “My body already feels sick. We also fear for our families, but it's our job to follow the rules.” The people here needed to travel for family emergencies, or because unlike the better-off they had run out of money and food. To travel during the lockdown they needed a permit, and the rules had just been changed. No one seemed to know what the rules were.“Confusion, confusion, confusion, why can’t there be an effective system?” fumed Rana Magar. “Sometimes, they say they need white pass, sometimes yellow and sometimes just an application.” <a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/lockdown-limbo-in-no-mans-land/" target="_blank" rel="noopener">Lockdown limbo in no man's land</a>, Deepak KharelWhile some people continue to walk around at all times of day, others are snared by the ominously-named ‘Multifunctional Rescue and Arrest Device’ and locked up for three hours on the street. Others seem to be able to wangle travel permits fairly easily, while others pay vegetable truck drivers to hide in the back.The lockdown is supposed to end on <a href="https://www.nepalitimes.com/latest/nepal-covid-19-lockdown-extended-till-7-april/" target="_blank" rel="noopener">Tuesday 7 April at midnight</a>  and may be extended further. The desperation of ordinary people trapped in the city is greater than ever, and so is the confusion about what is allowed and what is not. Is it ok to walk out to shop for food? Can I head out to the pharmacy? What if I have a medical emergency?  I called the emergency hotline by dialling 100 just to clarify. “You can leave the house in the morning and evening, maybe just for an hour,” said the operator. But the police do not seem to know that. Maiya Nepal, 60, is a household help and was detained by police while shopping for groceries at 8:30 in the morning. “Thank god, I wasn’t asked to become a chicken for hours,” she said, alluding to the practice of police punishing people by making them do sit-ups in the middle of the street. “the police need to be sure about the rules and not punish us.”LOCKDOWN DO’S AND DONT’S As far as we could figure out from official sources, here is a list of what is allowed and not allowed during the lockdown. This list is not exhaustive, nor is there any guarantee that police themselves know the rules.According to a statement published by the Home Ministry:  <ol><li>The responsibility to ensure essential supplies is with local governments.</li><li>Everyone should maintain at least a 1m gap while visiting a store. </li><li>The ward chief to head a committee made up of police to decide on maintaining essential services.</li><li>The committee should trace daily wagers and support them with provisions.</li><li>Shops to create daily packages of essential items, depending on size of families. </li><li>Charities and social welfare groups should coordinate with ward office and the committee. </li><li>Organisations and individuals not allowed to raise money using the lockdown as excuse. </li><li>Double distribution prohibited. </li><li>The Ministry of Finance, Commerce and Health should ensure the supply of essential items and distribute them evenly to all. </li></ol>Statement by the Metropolitan City District offices:<ol><li>Funeral vehicles do not need permits. Except for security vehicles, public and private transport should be off the roads.</li><li>Only essential services like health, security, food supply, water supply, dairy, electricity, telecommunication, news and information, customs, quarantine, waste management will be in operation. All others to stay home.</li><li>People can still go out, but only for urgent medical reasons or to buy food.</li><li>Home delivery services will be given permits for Kathmandu Valley.</li><li>Department stores will be allowed to open for ‘certain hours’ in the morning and evening. </li><li>No vehicles or persons will be allowed to leave Kathmandu Valley unless it is a family emergency like deaths or pregnancies.  </li><li>All others need verification from municipalities and have it attested by the district offices.  </li></ol>Rules for vehicle permits: <ol><li>The application should be signed in red ink. </li><li>A clear description of why the permit is needed.</li><li>Duration of the permit.</li><li>Name and designation should be clearly mentioned.</li><li>The ward office and police must approve the application. </li><li>According to the subject and circumstances different colour permits will be issued. </li><li>Local authorities can over-ride permit if it is misused.</li></ol>Read also: <a href="https://www.nepalitimes.com/here-now/home-health-care-during-a-lockdown/" target="_blank" rel="noopener">Home health care during lockdown</a>, Alisha Sijapati

Confusion persists about lockdown rules

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