Nepal’s consumer inflation reached 8.19% in mid-September compared to 8.64% last year, latest Nepal Rastra Bank figures show.
Food and beverage inflation hit 9.74%, and non-food and service sector prices increased by 6.99% during the review period. The highest costs hit low and lower-middle-income families especially hard during Dasain.
The only saving grace is remittances from Nepali abroad, where even the official inflow figures through banks and registered exchanges have increased to record levels.
The cost of spices (especially important items at festival time) went up by a whopping 45.46%. There is a severe shortage of sugar in the market, and even when available it is 17.86% costlier than last year. Vegetable prices rose 14.51%, and the price of milk and eggs are up 12.6%. Ghee is the only commodity for which the price has declined: by 13.08%.
Read Also: <a href="https://nepalitimes.com/news/business-not-happy-with-the-imf">Business not happy with the IMF</a>, Ramesh Kumar
Prices in the entertainment and culture sub-category have also increased by 15.55%— with miscellaneous goods and services going up by 12.21%, education 9.10%, household goods 8.11%, as well as furniture and household appliances by 6.59%.
While the inflation rate remains high, wages and salaries have not kept pace. The salary and wage rate index increased 5.25% in mid-September compared to 11.68% a year ago.
The government’s expenditure was Rs131.14 billion while revenue collection amounted to Rs141.08 billion. Gross foreign exchange reserves have also increased by 3.9%, mainly due to remittances and lower imports. Remittance inflow increased by 22.1% to Rs.228.37 billion compared to a 19.8% increase in the same period last year.
Meanwhile, Nepal’s current account and balance of payments were both in surplus during the first two months of fiscal year 2023/2024. The current account shows a surplus of Rs23.5 billion compared to a deficit of Rs36.84 billion during the same period last fiscal year while the BoP had a surplus of Rs53.61 billion by mid-September against a deficit of Rs 20.81 billion during the same time last year. &nbsp;

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Bada Inflation at Bada Dasain

In a move more reminiscent of the days of IMF structural adjustment conditionalities in Latin America, Nepal’s business community has bristled at what it called “interference” by the International Monetary Fund in Nepal’s domestic economic policy.
In January 2022, the IMF &nbsp;granted Nepal concessional loans worth $395.9 million under its Extended Credit Facility (ECF) following multiple discussions with Finance Ministry officials in Kathmandu under the previous government. &nbsp;
At the time, Nepali officials were alarmed at pandemic-induced fall in foreign exchange reserves and increasing current account deficit due to high imports, and agreed to accept the IMF’s conditional loan which extends until February 2025.
&nbsp;The conditions included deep reforms to Nepal's financial system, and public finance management, including amending the law to make Nepal Rastra Bank autonomous, a banking regulatory mechanism, preparing a blueprint to prevent misuse of loans, conducting external audits of the ten big commercial banks, and maintaining transparency by making tax exemptions granted by the government available to the public.
&nbsp;In the past, those closely associated with Nepal’s communist parties have criticised global financial institutions like the World Bank and the IMF for their pursuit of ‘neoliberal and imperialistic policies. But now it is the business community expressing their contempt, accusing foreign donor agencies of interfering in Nepal's internal economic policy.
&nbsp;Nepal's economy is beholden to foreign donor agencies and the small loans that they have provided us,” said the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Chandra Prasad Dhakal during a recent panel attended by Prime Minister Pushpa Kamal Dahal. “If our economic indicators are positive, we should pay off those loans.”
Dhakal claimed that Nepal’s economy is in crisis on account of the country having to follow strict conditions put in place by the IMF for its loans, and that paying them off would mean that the terms and conditions of the ECF agreement would cease to apply.&nbsp;
ECF provides medium-term financial assistance to low-income countries with protracted balance of payments problems, granting loans at zero interest rates to nations where the amount of money leaving the country exceeds the amount coming into the country.&nbsp;
The Confederation of Nepalese Industries (CNI) was even more direct. Chair Rajesh Kumar Agrawal warned the IMF to “stay in its lane” following a meeting with its representatives in September.&nbsp;
Chairman Agrawal highlighted the fact that undue pressure must not be put on Nepal because economic policies and principles of other nations are not entirely applicable to Nepal's economy, which has its own unique characteristics,’ read a statement released by the CNI after the meeting.
And while the government has initiated some reforms stipulated by the IMF in the loan agreement, major terms remain unmet— such as granting autonomy to the central bank.&nbsp;
The IMF withheld the third instalment of the ECF loan, and the funds were eventually released after Finance Minister Prakash Sharan Mahat assured the IMF in October that Nepal would make necessary reforms per the loan agreement.&nbsp;
These commitments have now put the government at odds with the private sector, which has expressed dissatisfaction over NRB’s new loan classification as well as the new provision of a six-month wait for non-performing loans to be upgraded.&nbsp;
Industrialists have taken special issue with the recently implemented guidelines on working capital loans, per which the NRB banned the practice of industries taking out current capital loans to clamp down on borrowers who take loans for industries and invest them elsewhere.&nbsp;
The NRB eventually revised the guidelines to make them more flexible for borrowers after the private sector lobbied against the provision, arguing that the guidelines — which they claim is the result of interference by the IMF—could not be implemented when Nepal is in a ‘difficult economic position’.&nbsp;
Panicked bankers— who are suspected to have colluded with internal auditors to hide that they were in cahoots with businesses and industries— have also been trying to stop the central bank from implementing the IMF-stipulated international audit of the ten biggest commercial banks.&nbsp;
All of this has led the private sector to attribute Nepal’s economic slowdown to increased regulation of financial institutions by the NRB.
“Our economy is where it is because we have implemented financial and economic policy directives given by Western lenders without contextualising suitability and effectiveness for Nepal’s economy,” CNI chair Agrawal said last month.&nbsp;
But officials at the Nepal Rastra Bank say that the IMF is being unfairly blamed for trying to prevent the misuse of loans and blocking laws and policies pertaining to financial governance and transparency. “The private sector is trying to block economic reforms in order to protect their own interests,” one NRB executive told Nepali Times.&nbsp;
A former secretary at the Finance Ministry says that economic policy terms and conditions set by the IMF expand its influence and force economically weaker countries to implement its norms, thereby distorting such countries’ economies, adding that the IMF is putting similar pressure on Nepal.&nbsp;
But Rastra Bank Governor Maha Prasad Adhikari says that Nepal is making amendments on its own even though they might inconvenience the private sector. Former Finance Minister and governor Yuvraj Khatiwada also doesn’t agree that the IMF is interfering in Nepal’s economic policy.
“The mandate of these agencies includes giving advice for financial stability and external sector reforms—issues like economic growth and credit expansion are not within their purview,” notes Khatiwada, adding that Nepal has no obligation to implement IMF’s suggestions. “Instead of pointing fingers at the IMF, the government must set policies that prioritise Nepal’s financial and external stability and economic growth.”
IMF representatives were unavailable for comment.&nbsp;
&nbsp;

Business not happy with the IMF

Assaulted daily by news of politicians getting away with larceny, convicted criminals being freed, impunity and then the tragic news of <a href="https://nepalitimes.com/here-now/war-in-israel-earthquake-and-grief-in-nepal">10 students brutally killed</a> by Hamas in Israel, the mood ahead of Dasain this year is subdued.
<a href="https://nepalitimes.com/news/state-malfunction">Adding to the woes</a> are everyday economic worries about inflation, low purchasing power, a slump in retail trading. Street front shops are shuttered, and have to-let signs. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
But at the macro-economic level, things are looking rosy, with Finance Minister Prakash Sharan Mahat trying to raise spirits this week by declaring that the death of <a href="https://nepalitimes.com/news/business-as-unusual">Nepal's economy</a> was exaggerated.
The World Bank has projected that the economy will grow by 3.9% this fiscal year, and by 5% in fiscal 2025.&nbsp;
Removing import restrictions, loosening monetary policy, surging remittances, and the locomotive of India’s economic growth together appear to be pulling Nepal’s wagons along.&nbsp;
But the Bank also warned of risks: an <a href="https://nepalitimes.com/news/sikkim-flood-is-warning-to-nepal">erratic monsoon </a>that could harm agriculture, a new spike in commodity prices due to India’s food export ban. Higher inflation could keep policy rates elevated, increase domestic debt servicing costs, and drag growth.
The Asian Development Bank (ADB) projected Nepal’s economic growth at a slightly higher 4.3% for fiscal 2024, up from 1.9% in 2023. But both projections are far short of the government’s 6% growth target, and behind India, Bangladesh and Bhutan.
The overall scenario does not look precarious because of bulging forex reserves driven by last year’s import restrictions and remittances.&nbsp;
From suffering daily electricity rationing Nepal is now exploring exports, <a href="https://nepalitimes.com/news/it-is-it">the IT sector is booming</a>, e-commerce has taken off, and agriculture is going from subsistence to commercial.&nbsp;
However, all this could have happened much more rapidly with better policy implementation. Money <a href="https://nepalitimes.com/opinion/guest-editorial/the-migration-myth">Nepalis abroad</a> send home is not being invested in productive sectors.
“Nepal needs $7-8 billion in investment per year. Capital formation is low, so we have to get more FDI. The scale of projects that need to come up has to be larger so that it can drive legislative and institutional reforms,” says Sujeev Shakya of Beed Management. “Only then can we create jobs, accelerate the economy and stem migration.”
<a href="https://nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">Nepal’s economy has been stagnant </a>in recent years, with high inflation, fiscal imbalance, inadequate investment, low domestic production, deteriorating bank asset quality, and mass out-migration. Export continues to lag further behind burgeoning imports.
Nepal’s economy is still reeling from long-Covid complications, but many of the underlying problems are structural, and lack of strategic thinking.&nbsp;
The economy did reap the peace dividend in the 2006-2016 decade after the peace agreement: fiscal management was in good shape, public debt was decreasing, the external sector was robust, and resources for expanding credit was adequate.&nbsp;
Investment in infrastructure at that time could have boosted growth and created jobs, but the private sector opted for quick returns on real estate, stock market speculation and trade. Politicians also never followed through on grand speeches about attracting and retaining foreign investors.&nbsp;
Coalition politics, bureaucratic inefficiency and counterintuitive policies<a href="https://nepalitimes.com/news/state-of-the-state"> remain major hurdles</a>. The private sector shielded by insular policies do not want the status quo to change, even though there has been no major economic reform legislation for four long years.
One does not need a Nobel Prize in Economics to figure out what to do: move on the next set of macro-fiscal reforms, create a genuine investment friendly environment, and curb the rampant rent-seeking mindset.&nbsp;
Often accused of being a compulsive optimist, Shakya maintains that although the road is serpentine, Nepal is moving in the right direction. “Nepalis are resilient,” he notes.&nbsp;
“We overcame war, earthquake, blockade and Covid. We are generally happy with what we have, but what Nepal needs is forward-thinking policies and transformative reforms to actually drive the economy forward.” &nbsp;

Sahina Shrestha

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A Member of Parliament operates a fast-food restaurant. Another MP runs a trout hatchery. A female party leader owns a pig farm. All three <a href="https://www.nepalitimes.com/latest/nepali-women-go-from-home-to-house">women are in the business of politics</a>, and they have established and run their own enterprises on the side to augment household income and to backstop their careers. While their male counterparts in <a href="https://www.nepalitimes.com/banner/can-nepal-elections-change-its-male-stream-politics">local, provincial and federal</a> governments have earned some notoriety for having a conflict of interest because they are also infrastructure contractors, these women <a href="https://www.nepalitimes.com/latest/women-leaders-set-example-for-rest-of-nepal">multitask without mixing business with politics</a>.&nbsp; Coffee, avocado and banana  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230314100332_7a5870a2238cf1567a28cc76eedff184b91864c9e900dd8db4aed064296a64f5.jpg" data-media-id="editor_3" data-image-id="20230314100332_7a5870a2238cf1567a28cc76eedff184b91864c9e900dd8db4aed064296a64f5" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="devi khadka"> <figcaption>Photo: DEVI KHADKA</figcaption> </figure>  Devi Khadka is a <a href="https://www.nepalitimes.com/banner/guerrilla-turned-member-of-parliament">former guerrilla</a> and Maoist Centre MP from Dolakha who was elected to the Constituent Assembly in 2008. And while she might have once walked the corridors of power in Kathmandu, Khadka is still attached to the roots of her family’s farming profession. &nbsp; In 2008, Khadka established a trout farm in Dolakha, but it was irreparably destroyed during the 2015 earthquake. However, she remained steadfast in her decision to continue her business and began growing tomatoes in greenhouses in Bhaktapur. But while Khadka’s farm thrived, things were not going so well back home in Dolakha, where she was the district in-charge under the erstwhile Nepal Communist Party formed after the merger of the UML and the Maoist Centre. A meeting of elected officials of nine municipalities of Dolakha were worried that subsidised farming and agriculture in general had become all but impossible in the district because of out-migration and low yield. Khadka was determined to do something about it – not through politics but with enterprise. “The decline of agriculture shook me to my core,” Khadka recalls. “I realised that it would be impossible to revive the people's hope and trust in farming unless I did not show them myself that properly done agriculture in Dolakha was still worthwhile.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230314110312_c6dfaed9dfa3fa749e4465979344458f3af67ce6191c2839f71dde6ee9a8d561.jpg" data-media-id="editor_5" data-image-id="20230314110312_c6dfaed9dfa3fa749e4465979344458f3af67ce6191c2839f71dde6ee9a8d561" data-rendition-name="original" width="800" height="423" loading="lazy" alt="devi khadka 2"> <figcaption>Photo: DEVI KHADKA</figcaption> </figure>  So, Khadka returned home and set up the Women Floris Agriculture Private Limited in Gaurishankar Municipality, where for the last three years, Khadka and her husband Raj Kumar Shrestha have been growing coffee, avocados and bananas. Along with two other women, she set up the farm with an investment of Rs5 million. The three women are involved full-time in the business and employ 12 men on a part-time basis whenever it is farming season.&nbsp; Khadka juggles this with her role as a Central Committee member of the Maoist party. And while avocado and banana sell mostly in the domestic market, she has successfully negotiated to export her farm’s coffee to South Korea, Australia and Japan and other countries. “The business has not only given me financial independence, it has also made me an ethical politician,” she says. “Because of my business, I am able to engage in politics without resorting to dirty business, I get to demonstrate a high moral standing to my children and ensure that they have a good future.” Read also: <a href="https://www.nepalitimes.com/banner/women-in-the-driving-seat">Women in the driving seat</a>, Shristi Karki Fast food and slow fashion  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230314100336_8b919284442cc235aef28995d6a6019c4ae30b59f4909c12a2d38b2eace55d6b.jpg" data-media-id="editor_7" data-image-id="20230314100336_8b919284442cc235aef28995d6a6019c4ae30b59f4909c12a2d38b2eace55d6b" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="NABINA LAMA 1"> <figcaption>Photos: SUMAN NEPALI</figcaption> </figure>  Nabina Lama was an MP in Nepal’s last Federal Parliament and is currently a central member of the UML. But despite an active political career, Lama owns not only one but two businesses. Her restaurant, Doban Pool Burger House in Kathmandu employs dozens of people. And many more benefit from her clothing store Rimthim Ethnic Collection, where she sells products made out of traditional dhaka and allo fabric. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230314100336_d66df1ecbfe9bd68801a6f79c910b48a6f9fac6abc5772cb8735069fdfc37b7d.jpg" data-media-id="editor_8" data-image-id="20230314100336_d66df1ecbfe9bd68801a6f79c910b48a6f9fac6abc5772cb8735069fdfc37b7d" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="NABINA LAMA 2"> </figure>  Lama’s ethnic fashion store is a joint venture with four other women entrepreneurs, and she is a 70% partner in the fast food restaurant. Whenever Lama is busy with her party work, her husband looks after day-to-day business at both outlets. &nbsp; Like Khadka, Lama agrees that entrepreneurship has made her financially self-sufficient and independent. She adds, “Having a business is the only reason I have been able to actively engage in politics.” Read also: <a href="https://www.nepalitimes.com/banner/nurture-in-her-nature/">Nurture in her nature</a>, Babita Shrestha Piggery and soap  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230314100336_856e2ee40a5325ef875171139823c68a89637985bde3910396fda3e74dbf736b.jpg" data-media-id="editor_10" data-image-id="20230314100336_856e2ee40a5325ef875171139823c68a89637985bde3910396fda3e74dbf736b" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="DHAN KUMARI SUNAR 1"> </figure>  Dhan Kumari Sunar, president of the Women's Organisation of the Scientific Socialist Communist Party of Nepal, operated a pig farm until it collapsed due to poor market management. But she did not let failure get her spirits down. Two years ago, she started the Tillikka Jhol Sabun Udhyog that makes liquid detergent together with Rs120,000 in investments from 12 other women from her party. Sunar took inspiration from her party’s ‘scientific’ ideology of an independent and self-reliant economy to set up her business.&nbsp; “The economic ownership of Nepali women in terms of resources and property is only 26%,” explains Sunar. “Entrepreneurship is <a href="https://www.nepalitimes.com/here-now/in-nepal-women-hold-up-more-than-half-the-sky">crucial to women’s freedom</a>, we cannot be truly free until we are financially independent.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230314100336_02ffdefb8f1a074d28eb890aa7d2c9cf2dcc1c8d22899aff999d9aeb21014566.jpg" data-media-id="editor_12" data-image-id="20230314100336_02ffdefb8f1a074d28eb890aa7d2c9cf2dcc1c8d22899aff999d9aeb21014566" data-rendition-name="original" width="1200" height="800" loading="lazy" alt="DHAN KUMARI SUNAR 2"> </figure>  Sunar’s business runs on word-of-mouth, and is doing well. But the politician in her is critical of the lack of state support for small businesses, adding that her loan proposal has been stalled. Says Sunar: “The government promises to facilitate self-employment of Nepali youth, but it is not happening on the ground. Powerful middlemen who control businesses seize the loans set aside for women and low-income individuals and communities." Translated from the Himal Khabar <a href="https://www.himalkhabar.com/news/134729">original</a> by Shristi Karki.&nbsp; Read also:&nbsp; <a href="https://www.nepalitimes.com/news/women-moving-nepal-s-climate-activism">Women moving Nepal’s climate activism</a>, Sewa Bhattarai <a href="https://www.nepalitimes.com/banner/the-women-connecting-nepal">The women connecting Nepal</a>, Sahina Shrestha

Nepal’s enterprising women in politics

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109121112/636b8b9c9c7e80680e06b2afjpeg.jpg" alt=""/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>The COVID-19 pandemic has caught the world off guard, with enormous repercussions for Nepal’s economy because of its reliance on overseas migration and tourism.Nepal’s three week lockdown has been extended till at least 27 April. Flights are not going to restart till mid-May at the earliest. The country’s remittance-fueled, consumption-led economy, low manufacturing capacity, unemployment, huge trade deficit, high reliance on import-based consumption have been pre-existing challenges even before the lockdown. The pandemic has made everything more difficult.Tourism is the hardest hit, especially the hotel industry which is most vulnerable due to the fixed cost associated with not only salary and wages but also regular maintenance well as loan servicing obligations. Tourism is cash flow sensitive, and its oxygen supply has come to complete halt. It will take at least till 2021 for travel and tourism to revive, or rebound. Priority rescue measures are urgently required.Transport is another sector that needs urgent attention. Once the lockdown situation improves, transportation will kickstart itself. But till then, the industry needs support to manage maintenance and financial obligations.Aviation witnessed a quick rebound after the double whammy of the earthquake and Blockade, particularly for domestic movement. The situation is different this time. The high cost of grounded aircraft due to leasing, fixed and variable costs will pose a major challenge. Big ticket loan exposure and interest expense may just kill some operators. Most airlines have equipment on ‘Dry Lease’ that carry certain fixed costs ranging from $100-150,000 per month for smaller aircraft. Dollar fares for expats and tourists have been a major revenue earner for operators, and with tourism down this will dry up.Finance industry including the banking sector are operating at bare minimum, and only offering basic services such as cash operation including remittance services and basic trade finance. New book creation has virtually stopped as no loan processing is being carried out. <a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/also-keeping-financially-healthy-in-a-lockdown/" target="_blank" rel="noopener">Also keeping financially healthy in a lockdown</a>, Siddhant Raj PandeyLiquidity has been a problem that predates the pandemic. Nepali BFIs have  been long plagued by liquidity crunch, particularly after the real estate crash of 2009. After the earthquake, the industry faced a major credit crunch. The capital hike, reconstruction demand, a stable government all led to a surge in loan demand. But an unstable liquidity supply was a chronic threat.If prolonged, this could lead to assets price burst and real-estate could take the plunge. Banks would have to revalue risk assets, as most are backed by real estate collaterals. In short, non-performing assets need to be closelh monitored.  Remittance-dependence has fuelled consumption growth, and this could be affected by coronavirus outbreaks in destination coutnries for Nepali migrants like Japan, Malaysia, Korea and the Gulf. In addition, there is now <a href="https://www.nepalitimes.com/editorial/commercially-important-people/" target="_blank" rel="noopener">uncertainty about labour demand</a> because of the global downturn. Annual remittances could take a nosedive.Construction could pick up as soon as the lockdown is lifted. But big ticket projects, particularly ones with foreign contractors, in hydro, airports, highways could slow down and costs could overshoot. Banks with guarantee exposure in the construction sector could also be hit. The non-funded instrument could see ‘Willful Claim’ capitalising on grey area of force majeure, currently under discussion at the Nepal Rastra Bank and the banking sector. Trade may rebound quickly because of Nepal’s import-based consumption patterns. However, the dent in purchasing power capacity due to loss of business and employment could be a matter of concern.The Health Sector ironically may see a slowdown during the pandemic. The banks carry significant exposure in medical care in heads like working capital, term loan and fixed assets. Balance of Payments could be a major concern as remittances drop. Tourism is another forex earner that is hit hard. Exports were always negligible, but even that will be slowed further with the lockdown.  Revenue Collection could dry up due to shortfall in revenue targets.  This could limit spending and development in infrastructure projects, creating problems in multiple areas from employment, base level economic activities, consumption amongst others.Small and Medium Enterprises are key economic enablers and yet largely out of formal sector reach. This impact assessment could be bit tricky and may require a deep dive into both formal and informal source of borrowings.Perhaps linkage to cooperatives could be one way to establish the relationship so as to gauge the depth of the impact. The critical focus here should be on employment generation, domestic production and revenue collection. GDP has 15 main sectors contributing to it. It may be wise to run a predictive analysis of each critical sector that may impact employment, value chain, economy amongst others.These are trying times for the economy, and we must be strategic about pressing the right buttons to speed up the rebound. Sanjib Subba was until recently the CEO of Nepal Banking Institute.

Unlocking the economy post-lockdown

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78a69c7e80680e0646b2jpeg.jpg" alt="" width="1000" height="763"/><figcaption>Photo: BIKRAM RAI</figcaption></figure>With business coming to a grinding halt globally due to the COVID-19 pandemic, Nepal’s migration and tourism-based economy is being severely impacted.Global stock markets are in freefall, the US has halted trans-Atlantic flights, Italy is in lockdown, India has stopped issuing tourist visas, schools in Japan are closed, Qatar has banned nationals from 14 countries, Saudi Arabia has halted travel to nine countries, and although the virus has stabilised in next-door China, there is a danger there of reverse infection.But as the epidemic spreads, Nepal has officially admitted to only one confirmed case of COVID-19. Public health experts say this does not mean there are no infected people, it just means suspected cases have not been tested yet. They say the country is not prepared to deal with an outbreak.“The situation around the world is getting out of hand, but Nepal has been able to dodge a full-blown health crisis till now,” says Sameer M Dixit, a scientist at the Centre for Molecular Dynamics Nepal. “In an ideal situation the country would be under lockdown, but right now Nepal should stop all direct flights from highly affected countries.”Even though there are no overt signs of a health crisis, Nepal’s economy has already been hit hard and the impact is expected to worsen in the coming months as tourism collapses and air travel is further curtailed.The Asian Development Bank’s ‘<a href="https://www.adb.org/publications/economic-impact-covid19-developing-asia" target="_blank" rel="noopener">COVID-19 Economic Impact Assessment Template</a>’ released this week lays out the best- and worst-case scenarios for countries in the region. For Nepal, the bank predicts a loss of up to $322 million.The tourism sector has been impacted by travel restrictions imposed by Nepal and other countries, and airlines cancelling flights.The government decision late Thursday, after the print edition of this paper had gone to press, decided to revoke visa on arrival at Kathmandu for nationals of all countries. Visitors will still be allowed to enter Nepal but they will require a visa from a Nepali mission abroad and also a Coronavirus-free health certificate. The visa rule be effective 14 March to 30 April for now.The move comes one day after China cancelled all expeditions from its side of Mt Everest. The Nepali government has also cancelled all climbing expedition permits including Mt Everest for the spring season.Read also: <a href="https://www.nepalitimes.com/banner/why-nepal-must-watch-about-coronavirus-but-not-panic/" target="_blank" rel="noopener">Why Nepal must watch Coronavirus, but not panic</a>, Sameer M DixitEven before the government <a href="https://www.nepalitimes.com/latest/lets-call-off-visit-nepal-year-2020/" target="_blank" rel="noopener">called off Visit Nepal Year 2020</a>, the campaign was criticised for lack of international promotion and the money being wasted on domestic extravaganza. Although tourist arrivals saw only a slight drop to 101,400 in February, there was a 80% decrease in visitors from China.Official figures are not yet available for March and April, but the travel industry is reporting widespread cancellations. <a href="https://www.nepalitimes.com/latest/nepal-postpones-international-events-as-fear-of-covid-19-intensifies/" target="_blank" rel="noopener">Many international conferences and sports events have been postponed</a>. Hotel occupancy rates are dropping at what should have been peak season. Trekking and mountaineering expeditions have gone ahead but there has been a 50% decline in the number of clients. There are also reports of cancellations for April.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78a99c7e80680e0646b3jpeg.jpg" alt="" width="981" height="497"><figcaption> </figcaption></figure>“Hotel bookings are down by 60% in the 5-star hotels around Nepal,” Shreejana Rana, President of <a href="https://www.hotelassociationnepal.org.np/" target="_blank" rel="noopener">Hotel Association of Nepal</a>, told Nepali Times. “We had <a href="https://www.nepalitimes.com/banner/chinese-tourist-influx-to-nepal-in-2020/" target="_blank" rel="noopener">expected a surge in bookings </a>after Chinese New Year and during the spring from American and European tourists but that isn’t the case.”The first airlines to cancel flights were the ones operating to Chinese destinations: Himalaya Airlines, Sichuan Airlines and Tibet Airlines. Air China, China Southern and China Eastern are still operating flights, but with reduced frequency and smaller aircraft.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78ab9c7e80680e0646b4jpeg.jpg" alt="" width="4096" height="2730"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78ae9c7e80680e0646b5jpeg.jpg" alt="" width="3644" height="2429"><figcaption> </figcaption></figure>“The tourism industry is very sensitive. The smallest problem has widespread impact, and it takes a lot of time to recover from it,” says Deepak Raj Joshi, former CEO of <a href="https://www.welcomenepal.com/" target="_blank" rel="noopener">Nepal Tourism Board</a>. “We need to start preparing for the future right away.”The Tourism Ministry is now repurposing <a href="https://www.nepalitimes.com/editorial/the-nepal-brand/" target="_blank" rel="noopener">Visit Nepal Year 2020</a> towards a 2020-2030 ‘Tourism Decade’, and the hotel industry is relying on domestic promotion, encouraging Nepalis to travel to Pokhara and to go trekking during the new-year break in April.Nepal expects about 250 climbers from 24 expeditions on Mt Everest this spring, even though Korean, Japanese and some western expeditions have cancelled. This is half down from last year, when there was a <a href="https://www.nepalitimes.com/banner/most-days-its-not-so-crowded-on-mt-everest/" target="_blank" rel="noopener">notorious traffic jam on the summit</a>. On Wednesday, China closed its side of the mountain due to the COVID-19 scare.“Everest expeditions are starting soon but we are still trying to figure out what to do if the mountaineers catch coronavirus during the trip,” says Sarita Lama of the <a href="https://www.taan.org.np/" target="_blank" rel="noopener">Trekking Agencies’ Association of Nepal (TAAN)</a>. “This is so bad it may take us years to recover from the crisis.” Trek bookings are also at half of last year’s numbers.Nepal’s main source of foreign exchange, its <a href="https://www.nepalitimes.com/opinion/for-nepals-migrant-workers-good-news-in-small-bites/" target="_blank" rel="noopener">two million workers abroad</a>, will also be hit. Qatar this week imposed a ban on workers from 14 countries, including Nepal. Nepal is preventing workers from flying to South Korea.The High-Level Coordination Committee also decided on Thursday to stop issuing labour permits for Nepali migrants seeking to go abroad for work. It is uncertain when the migration ban will be lifted.Read also: <a href="https://www.nepalitimes.com/opinion/labour-mobility/crossborder-virus-and-nepali-migrant-workers/" target="_blank" rel="noopener">Crossborder virus and Nepali migrant workers</a>, Upasana KhadkaNepal’s major infrastructure projects all face delays because of the reliance on Chinese contractors and workers. The start of the epidemic in January coincided with Chinese New Year, which meant that workers at new airport projects in Pokhara, Bhairawa and numerous hydropower plants under construction who had gone home could not return.Even among those who have returned, some have been quarantined, including 70 who work on Pokhara’s new airport. If given the all-clear, they will be released only on 16 March.“Although work has slowed down these past couple of months, we will work night and day to meet the target completion date of July 2021,” Pokhara airport manager Binesh Munakarmi assured Nepali Times.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78b19c7e80680e0646b6jpeg.jpg" alt="" width="3000" height="1688"><figcaption> </figcaption></figure>Construction at Bhairawa airport, which was scheduled to open later this year, is expected to be delayed.“Many of our engineers and workers have not been able to come back to Nepal,” says Bhairawa airport project chief Prabesh Adhikari. “There are about 25 Chinese workers on site and we are trying to move construction forward, but we need the rest to return.”The timely completion of<a href="https://archive.nepalitimes.com/article/nation/reservoirs-of-suspicion/hydropower-geopolitics%20,3991" target="_blank" rel="noopener"> hydropower projects</a>, of which 65 have the involvement of Chinese companies, looks more bleak. Construction at 25 of these under-construction projects have not resumed since Chinese New Year. Workers have not been allowed to travel out of China, and necessary electro-mechanical equipment has also not been dispatched from China to Nepal.“Even if one Chinese engineer is absent, or if one critical piece of equipment does not arrive from China, work stops,” says the <a href="http://www.ippan.org.np/public/page/ippan-committee" target="_blank" rel="noopener">President of the Independent Power Producers’ Association</a> Shailendra Guragain. “If the situation worsens, we may be seeing losses amounting to a billion dollars in our projects.”Read also: <a href="https://www.nepalitimes.com/here-now/the-climate-connection-to-covid-19/" target="_blank" rel="noopener">The climate connection to Covid-19</a>, Rastraraj Bhandari

Nepal’s economy, already weak, takes direct hit

Nepal is ranked highest among South Asian countries in the GDP growth with 7.5% in FY2017, showing steep recovery after the earthquake and Blockade. The country must create 240,000 jobs a year to maintain its employment rate which is expected to slow down to 4.6% in 2018, according to South Asia Economic Focus report by World Bank. However, growth in FY2018 will be 4.6% according to the Bank’s twice-yearly Nepal Development Update. The main challenge will be managing fiscal and current account deficits.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710114/6368cabd9c7e80680e02f32fjpeg.jpg" alt="" width="472" height="337"/><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710114/6368cabf9c7e80680e02f330jpeg.jpg" alt="" width="325" height="331">Similarly, the World Economic Outlook of the International Monetary Fund (IMF) shows Nepal’s monthly remittance rose to an all-time high of $680 million in March 2018. The reason is said to be an increase in bank deposits to almost 16%. However inflation rate also rose to the 6% in the same period, the IMF said.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710114/6368cac09c7e80680e02f331jpeg.jpg" alt="" width="491" height="335">

Growing GDP and remittance

Nepal’s only international aviation gateway, at Kathmandu airport, will cut night-time operation hours to allow construction of taxiways, and airlines have been told to curtail flights. This is expected to lead to more than normal chaos during the height of peak autumn and spring tourist seasons at an airport that is congested even at the best of times. The airport will close from 10PM to 8AM from 8 November-31 March 2025. The taxiways will now connect to the thresholds at both ends of the runway, making the airport more efficient in handling higher frequencies of landings and takeoffs. The parallel taxiway extension will allow international flights to land every 4 minutes instead of the current every 7 minutes. At present planes have to wait to land until a plane taking off backtracks along the runway.&nbsp; Kathmandu is Nepal’s only airport with international operations, and it has only one runway that is only one way in from the south over the mountains. With the taxiway improvement, the airport will be able to handle 42 aircraft landings and takeoffs per hour — double the current capacity.&nbsp; The Civil Aviation Authority of Nepal (CAAN) has been trying to entice international airlines to also start flying to and from the other two international airports at Pokhara and Bhairawa (Lumbini) by slashing landing and handling charges. But so far only Nepal Airlines operates a weekly flight to Bhairawa from Kuala Lumpur.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32.jpg" data-media-id="editor_0" data-image-id="20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32" data-rendition-name="original" width="2356" height="1134" loading="lazy" alt="Kathmandu airport expansion"> <figcaption>Kathmandu Airport Expansion plan with extension of taxiways to the thresholds of runways 02 and 20 that will limit airport operations from 8 November 2024 - 31 March 2025. Areas in blue are existing structures, including the international terminal which in future will be the domestic airport, and the new international terminal near the north end of the runway,</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a.jpg" data-media-id="editor_1" data-image-id="20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a" data-rendition-name="original" width="1353" height="1328" loading="lazy" alt="Kathmandu airport NT"> </figure>  CAAN has reportedly told international airlines to cut their flight frequency to Kathmandu citing the shorter operation hours and has told budget airlines to shift some of their flights to Pokhara or Bhairawa, or face cuts. Many airlines currently operate regular flights to and from Kathmandu between 10PM and 8AM: Air Arabia to Sharjah, Fly Dubai to Dubai, Jazeera Airways to Kuwait, Cathay Pacific to Hong Kong, Singapore Airlines, several Nepal Airlines flights, and one of four daily flights by Qatar Airways to Doha. Jazeera Airways, FlyDubai, and Thai AirAsia have applied and got permission from CAAN to begin regular flights to Bhairawa’s Gautam Buddha International Airport. Starting 9 November, FlyDubai will start making a stopover in Bhairawa before flying on to Kathmandu. Immigration, customs and security are all fully functional in Bhairawa. In Kathmandu, the next phase of the airport upgrade includes converting the current international terminal for domestic operations, the construction of a new international terminal where the domestic departure area is now, as well as moving the hangars and the Nepal Army Air Wing to the eastern side of the runway. The apron area will also double its parking space for widebody jets. This is part of a Airport Capacity Enhancement Project that was initially funded through a $80 million loan from the Asian Development Bank (ADB), and the entire masterplan is expected to cost $800 million. This project is the latest upgrade to Nepal’s only international airport since it saw its first flight in 1949. The current international and domestic terminals are too small to handle the current annual traffic volume of 8.5 million passengers a year that is growing at 20% a year.

Kathmandu airport to cut flight hours

As Kathmandu becomes more congested and polluted, and with remote online work becoming the norm, many professional Nepalis are planning to retire in Pokhara, or move there.&nbsp; With its stunning mountain panorama, balmy winters and proximity to a profusion of wilderness areas, builders are responding to this demand with new townhouses, housing development and apartments. One such block of flats is the 10-storey <a href="https://sungavaapartment.com/">Sungava Apartment</a> located at Phulbari above the Seti River, near the point where it flows into and under Pokhara. The imposing structure near Manipal Hospital is almost complete, and on a recent visit the site was strewn with huge boulders unearthed while digging the foundation.&nbsp; The Seti brought down these boulders during a gigantic flood that geologists estimate happened 800 years ago when a chunk of Annapurna IV broke off and ploughed into the glacier below. Today, Sungava (means ‘orchid’) sits safely on a high terrace, 100m above the blue-green Seti and commands a view of Dhaulagiri, Annapurna South, Machapuchre, Annapurna III and IV.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9.jpg" data-media-id="editor_1" data-image-id="2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9" data-rendition-name="original" width="2016" height="1512" loading="lazy" alt="High living below the Himalaya NT"> </figure>  The soil here is conglomerate that has solidified like concrete, and the boulders were extracted by heavy earthmovers. It is intriguing to think that these metamorphic rocks as big as cars, rounded by glacial grinding, were once a part of a much higher Annapurna IV. Even for those with little interest in geology, Sungava is an ideal place to contemplate the tectonic forces that pushed these peaks into the sky to be sculpted into delicate shapes by wind, snow, earthquake and avalanche over millions of years. The view of the Himalayan panorama from Sungava’s many balconies are breathtaking when not obscured by clouds, or the haze that drifts in from across the southern border. On most days, just watching the towering pyramid of Machapuchre (Tamu name: कतासुँ क्लिको) play hide and seek with the clouds is mesmerising. There are rocks aplenty at Phulbari, and it is probably the flowers that grew along the flat terraces e that gave the place its flowery name. The boulders will hopefully be turned into a rock garden while landscaping. An nearby restaurant complex is making the best use of the stones in its design, using flat rocks as outdoor benches and tables. Sungava was designed by the husband-wife architect team of Deepak Sherchan and Jyoti Joshi of <a href="https://thedarkmermaidamarbshrestha.blogspot.com/2013/12/creative-builders-collaborative-cbc.html">Creative Builders Collaborative (CBC)</a>, which also built Heritage Plaza, Indreni Apartment and numerous other projects in Nepal. Sadbhavana retains CBC’s trademark Newari-style masonry and here it borrows from the orange brickwork of the old town of Pokhara, integrating it with modern design elements. A few of those heritage houses are still standing in Ganesh Tole and Ram Krishna Tole in Pokhara’s old quarter.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab.jpg" data-media-id="editor_3" data-image-id="2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab" data-rendition-name="original" width="1362" height="595" loading="lazy" alt="High living below the Himalaya NT"> </figure>  About 400m from the apartment past a bend on the river, and down below three tiers of terraces in the canyon is a suspension bridge. Below it, the Seti is still swollen with post-monsoon flow as it tumbles away in a hurry to head down south.&nbsp; Back at the apartment, it is quiet, far away from the hubbub of Lakeside a 15 minute drive away, and in the lap of greenery. There are 52 units at Sungava and it already has a close-knit prospective community of professionals, including doctors, publishers, engineers, and businesspeople from the renewable energy and IT sectors.&nbsp; Some residents say they opted for a second home in Pokhara to make it a ‘base camp’ to explore the Annapurnas with its many hiking trails made newly accessible with new roads. With the NRN citizenship law, overseas Nepalis can now also buy the flats. &nbsp; The floor plans include options for north and south-facing 3-bedroom apartments with verandas, and the facility has underground parking has EV charging, heated pool, sauna and gym. There are still some unsold apartments with panoramic views of the mountains and one can imagine oneself at the kitchen with its huge window, humming a ditty while preparing breakfast: “खाना पकाउँ हिमाल हेरेर...”

High living below the Himalaya

When the United Nations held its Summit of the Future at its headquarters in New York in September, many world leaders, including Nepal’s Prime Minister K P Oli, highlighted the effect of climate breakdown in increasing the frequency and intensity of natural disasters. What did not get as much attention was the long term impact of the climate crisis on food production. In fact, heat stress, weather extremes and the consequences on rain-fed agriculture is already being felt worldwide, undermining the chances of the <a href="https://unstats.un.org/sdgs/">UN’s Sustainable Development Goals (SDGs)</a> being met by 2030.&nbsp; The SDG’s 17 targets commit countries like Nepal to reduce poverty and inequality, end malnutrition, protect the natural environment, and ensure that citizens all enjoy health, justice and prosperity without leaving anyone behind.&nbsp; However, besides the impact of climate breakdown on agricultural production, in Nepal the area under cultivation is impacted by urban expansion, falling productivity and the need for expensive inputs like fertiliser and pesticides.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62.jpg" data-media-id="editor_1" data-image-id="20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62" data-rendition-name="original" width="999" height="1500" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Kathmandu's urban sprawl is eating into its fertile cultivable lands. Photo: TAYLOR MASON</figcaption> </figure>  Now, a new study led by Nepali researcher Prajal Pradhan at the University of Groningen in The Netherlands looks at how urban agriculture may offer a solution to falling food production and meeting SDG targets. The researchers evaluated 1,450 publications exploring the contributions of urban agriculture with both positive and negative effects, and published their findings in the journal Cells Report Sustainability. Urban agriculture can help achieve 17 SDGs, positively influencing 81 targets. However, it could also undermine 51 goals.&nbsp; Read also: <a href="https://nepalitimes.com/here-now/the-vanishing-land">The vanishing land</a>, Taylor Mason “Urban agriculture offers immense potential for sustainable development, but realising this potential depends crucially on adopting practices that minimise its adverse effects while maximising its benefits,” Pradhan explains. Urban agriculture can substantially enhance urban food security, provide employment to the urban poor, serve as ground water recharge in built-up areas, and preserve open spaces that can serve as safe havens during disasters like earthquakes. However, it also presents problems like the potential health risks from contamination and the need for expensive inputs. &nbsp; “Urban agriculture plays a definitive role in advancing the SDGs, but achieving this requires tailored, context-specific solutions that address the unique challenges of different regions,” says Yuanchao Hu of Wuhan University in China and who is a researcher at the Potsdam Institute for Climate Impact Research. “But it needs equitable access and rigorous management of environmental risks.”&nbsp; Rapid urbanisation is eating into Nepal’s most fertile agricultural land, which means farming in remaining open spaces inside cities can be a viable alternative, especially as food prices rise.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8.jpg" data-media-id="editor_3" data-image-id="20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>A vegetable patch in between new houses in Thimi. Photo: TAYLOR MASON</figcaption> </figure>  “The conversion of Nepal’s most fertile land into cities is a severe problem,” Pradhan told Nepali Times. “Crop cultivation, horticulture, agroforestry, beekeeping, livestock rearing, or aquaculture can all be farming activities within and around cities.”&nbsp; The study makes recommendations for sustainable practices that build on the positive aspects of urban agriculture while mitigating the downsides, thereby promoting more resilient cities in future. Research shows that urban agriculture has been helping many countries attain SDG targets by enhancing food security and biodiversity while helping education and preservation of open spaces.&nbsp; Indeed, many farmers from the hinterland who have settled in Kathmandu Valley or other urban areas of the country have been practicing urban agriculture, leasing neighbourhood patches or cultivating roof gardens both out of necessity because of inflation and falling income to grow their own food, and also as a fulfilling hobby. Saurav Dhakal, a sustainability advocate with Story Cycle and now research fellow at the Asian Institute of Technology in Thailand, says there are socio-economic and environmental benefits of urban agriculture. “It provides benefits to all urban dwellers, regardless of their income status,” says Dhakal, “families get fresh food, and there are many other benefits like water retention, heat regulation and biodiversity. These are all public goods, so special government incentives may be needed.” It is not unusual to see vegetable patches and even paddy fields within inner city Kathmandu where an older generation of farmers are using available fertile land and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/rooftop-gardens-kathmandu,1415">roof gardens to produce fresh, nutritious food </a>to reduce their dependence on food items that have to be bought after being trucked in from large distances.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77.jpg" data-media-id="editor_5" data-image-id="2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>An older generation of farmers are using any available fertile land to continue farming but it is getting more and more difficult. Photo: TAYLOR MASON </figcaption> </figure>  Nepal’s urban population grew rapidly from only 3.6% in 1991 to 25% today. There is large outmigration from the mountains to peri-urban areas of the Tarai, to Kathmandu Valley and Pokhara, with many young men then moving abroad for work. Kathmandu Valley’s population has swelled to nearly 3 million, and is growing at 6.5% a year. Dilip Shrestha, 71, used to work for Nepal Food Corporation, so he knew firsthand about inflation, shortages and vegetables with pesticide residue. So, when he designed his new house in Kathmandu, he built a spacious roof where he grows cucumber, ginger, garlic, coriander, onions, tomatoes, chili, beans, okra, pumpkin and lettuce. His family eats healthier, and he has reduced dependence on the market.&nbsp; The co-author of the Cell Reports Sustainability journal article, Daya Raj Subedi who is a PhD candidate at Beijing Forestry University, says urban agriculture also promotes inclusion and psycho-social wellbeing.&nbsp; He says, “A crucial finding of the study is the identification of opportunities and challenges associated with urban agriculture, it can promote sustainable transformation of society.” In Banepa, 55-year-old Bijaya Manandhar in her lifetime has watched the fertile farms of her neighbourhood that used to supply vegetables to Kathmandu, now completely built up with no open space left. The pandemic lockdown prompted her to turn to the family’s <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world">ancestral livelihood by growing food</a> not on terrace farms, but on the roof terrace. Manandhar is now a part of <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world%5C%5C">कौसी खेती र करेसाबारी क्रान्ती</a> (Rooftop Farming and Garden Revolution) which has an online membership of 52,000, and awards annual prizes to women who excel in urban agriculture.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d.jpg" data-media-id="editor_8" data-image-id="20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d" data-rendition-name="original" width="1600" height="736" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Rooftop farming is gaining popularity as a form of urban agriculture. </figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed.jpg" data-media-id="editor_9" data-image-id="20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed" data-rendition-name="original" width="4000" height="3000" loading="lazy" alt="urban agriculture in Kathmandu"> </figure>  Pradhan says the challenge now is to upscale such examples of successful urban agricultural practices so they support Neal’s efforts to meet SDG targets. He adds, “Crop cultivation around cities can be protected by land use plans and regulations. Promoting community-based agriculture, including rooftop gardens, requires community engagement and public-private partnerships across the food value chain.”&nbsp; Such support would accelerate the popularity of existing rooftop farming and community gardens in Kathmandu Valley, or kitchen garden initiatives in Pokhara, and building on traditional farming practices that are preserved and integrated into urban settings like in Bhaktapur and Banepa. In Lalitpur, the Women Entrepreneurship Facilitation Center promotes urban farming enhancing both sustainability and empowerment.&nbsp; Another co-author of the report, Yuanchao Hu from China says followup research of the team will aim to identify good practices in local urban agriculture practices. He adds, “There are examples of urban agriculture that optimise sustainability, ensuring that it remains a viable solution for cities globally while countries try to meet SDG targets.” Prajal Pradhan, Daya Raj Subedi, Kshitij Dahal, Yuanchao Hu, Prakriti Gurung, Sijal Pokharel, Sagar Kafle, Biplav Khatri, Sudeeksha Basyal, Monika Gurung, and Aruna Joshi. Urban Agriculture matters for sustainable development. Cell Reports Sustainability, 1:100217, 2024. [DOI: 10.1016/j.crsus.2024.100217] Prajal Pradhan (<a href="mailto:p.pradhan@rug.nl">p.pradhan@rug.nl</a>) 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/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_14" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>

Back to the land in the cities

The 700-year-old Lakshmi Narasingha temple in Bhaktapur houses a rare half-lion and half-human incarnation of Lord Vishnu carrying the Goddess Lakshmi. The temple was destroyed in the 1934 mega earthquake that killed 10,000 people and destroyed many monuments in Kathmandu Valley. It was rebuilt by a German project in the 1980s, but as a single-storey structure instead of its original two-tier pagoda design.&nbsp; With new findings from in-depth research, Bhaktapur municipality began re-restoring the temple in 2021, preserving its original architecture.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18.jpg" data-media-id="editor_0" data-image-id="20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “Our temples and heritage sites hold deep meaning. It is disheartening to witness how often they lose their original elements, whether by design or accident,” explains Kumar Chawal of the Consumer Committee of Bhaktapur. “There is a need to preserve our architecture and protect its historical value for future generations. Otherwise, we risk losing a vital part of our identity.” The Laksmi Narsingha restoration is similar to the Bhai Dega temple in Patan Darbar Square which also collapsed in 1934, but was rebuilt with a Moghul-style dome by the Rana government at the time. Only two months before the 2015 earthquake, heritage conservationists had started to rebuild Bhai Dega as the original three-tier based on early photographs. But priorities shifted when four other temples in the square were brought down by the 7.8M earthquake on 25 April 2015.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130.jpg" data-media-id="editor_1" data-image-id="20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  This showed how damage to monuments in Kathmandu Valley spanned from one earthquake to the next. Bhai Dega restoration remains half-complete to this day because money for its restoration ran out.&nbsp; Whereas Bhai Dega restoration was done by the Kathmandu Valley Preservation Trust with grants from western embassies and international foundations, in Bhaktapur it is the municipality itself that allocated the Rs30.7 million needed to restore the Lakshmi Narasingha temple. The expected date of completion is early 2025. The municipality and local communities are focusing on two main aspects: preserving the past and promoting localisation. The restoration team has designed a blueprint for the temple by using historical photographs and insights from older generations.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30.jpg" data-media-id="editor_2" data-image-id="20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30" data-rendition-name="original" width="1200" height="560" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “At first, the Lakshmi Narasingha temple had only one entrance, but during the demolition process, we uncovered the foundations of four doors. Now, we are restoring all of them. This is an example of how our ancient structures have changed over time, often without our knowledge,” says Chawal. “Constructing temples is not like building houses. They carry historical and spiritual values, which is why they hold a special place in our hearts,” he adds. By replicating ancient design elements and rebuilding the temple as accurately as possible to its original form, the team has stayed true to Bhaktapur’s soul. But the restoration also revived ancient techniques that were in danger of being forgotten, generating employment for woodcarvers, masons, and contractors. The community of Bhaktapur’s Gahiti neighbourhood near the famous Nyatapola Temple has also set aside specific days for locals to volunteer in the reconstruction work. This has encouraged young people to take pride in ownership of their heritage. Families have also supported the effort by donating funds for bells, the temple pinnacle, and other structural features to the temple.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6.jpg" data-media-id="editor_3" data-image-id="20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “I feel at peace knowing I have contributed my sweat to restoring this temple,” said one volunteer. “It is our duty to preserve our temples and heritage. The Nyatapola area will look magical once this temple is completed.” Community mobilisation is a long-standing tradition in Bhaktapur. In the past, locals have actively participated in the restoration of other temples in the city, such as Bhairav and Nyatapola fostering a strong sense of ownership. This collective engagement has not only been crucial in preserving the city's historical monuments but also in strengthening the bond between local communities and their heritage, says officials at the municipality. While securing funding is essential, and the municipality showed it values heritage conservation, the Lakshmi Narasingha restoration is proof that active involvement and sense of responsibility of the local community is as important, if not more. Local involvement also means that the monuments will be cared for into the future, When locals take ownership of these efforts, the restored monuments are not only protected in the present but are also cared for in the future.

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