<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221207101212/639059cf9c7e80680e0ce20ajpeg.jpg" alt="" width="1083" height="650"/><figcaption></figcaption></figure>The last time there was a Parliament in Nepal as hung as this one after an election, it was back in 1994.As the <a href="https://www.nepalitimes.com/banner/the-nepali-people-have-spoken/" target="_blank" rel="noopener noreferrer">last ballots of the 20 November elections are counted</a> none of the parties have reached the magic 138 necessary to form a government in the 275-member House of Representatives (165 directly elected, and 110 chosen by the political parties in proportion to the votes they get).The Nepali Congress (NC) and the UML are first and second in the direct count. And in the proportional representation ballot, the UML is first and NC second.The NC or the UML will need the Maoist Centre, the independent RSP, or the royal-right RPP to form the next government.The two big parties can add other smaller parties, but the more members of a coalition there are, the more complicated it will be to satisfy everyone to form a government.And we have seen from the past that could be the source of an unstable government. In midterm elections in 1994, the the UML got 88 seats and the NC 83 — leading to a period of fluid politics in which the UML allied with Lokendra Bahadur Chand and the NC with Surya Bahadur Thapa, making the two Panchayat-era figures prime ministers.Not only did this begin an era of dirty politics, but also squandered the gains of the 1990 People’s Movement. There is a lesson from that for 2022: don’t take the support of fringe parties just to be prime minister.It is also an insult to the popular mandate. After all, why try to be the first or second party if that does not count? Just adding up seats for a technical majority without a specific ideology or program is to let the people down. Such a coalition will not fulfil voters’ desire for development and prosperity.The Maoists have shrunk to only 17 directly elected seats from 36 seats in 2017, and 120 seats in 2008. In fact, the Maoists have about the same strength as the RSP, the independent party set up only six months ago, in the proportional representation vote.Pushpa Kamal Dahal does not have the public mandate to be prime minister, as he confidently declared before the polls. He is not even eligible to lead his Maoist party, which is not kingmaker anymore.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/nepal-poll-results-signal-upset/" target="_blank" rel="noopener noreferrer">Other parties have bitten the dust</a>. Mahant Thakur’s LSP couldn’t even get 3% of the votes, and will lose its national party status. Madhav Nepal’s Unified Socialist is desperately trying to stay afloat.Former separatist C K Raut’s Janamat Party and Nagarik Unmukti Party of Resham Chaudhary (who is still in jail for the Tikapur Massacre in 2015) have shown gains. The JSP is doing better because of its electoral alliance with the UML, even though its leader Upendra Yadav lost his seat.In the 2013 Constituent Assembly polls, the NC got 105 seats and the UML 91. At that time, the two biggest parties united to form a joint government under Sushil Koirala which promulgated the Constitution two years later.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/lower-than-usual-turnout-in-nepal-polls/" target="_blank" rel="noopener noreferrer">In this election</a>, the NC and UML combined have more than half the 9.4 million proportional representation ballots. Most Nepalis are therefore still with these two big parties.There is precedent from 2013 for the NC and the UML to form a government, they would just have to let bygones be bygones. This would be the most stable tie-up ensuring much-delayed development, and that is the message voters have delivered in this election.

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

Back to the future

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221207101212/639059759c7e80680e0ce1eejpeg.jpg" alt="" width="2048" height="1366"/><figcaption>Toshima Karki of Rastriya Swatantra Party after her win in Lalitpur-3. Photos: SUMAN NEPALI</figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221207101212/639059799c7e80680e0ce1efjpeg.jpg" alt="" width="2048" height="1366"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221207101212/6390597c9c7e80680e0ce1f0jpeg.jpg" alt="" width="2048" height="1366">Antiestablishmentarianism. That new word has entered Nepal’s political lexicon.Kathmandu has elected a lawyer, Lalitpur a doctor, both women under 35 from the independent Rastriya Swatantra Party (RSP), which was formed just five months ago by tv anchor <a href="https://www.nepalitimes.com/banner/after-balen-the-rabi-phenomenon/" target="_blank" rel="noopener noreferrer">Rabi Lamichhane</a>, who also won from Chitwan.Major municipalities had just voted for independent candidates like <a href="https://www.nepalitimes.com/opinion/kathmandus-balen-phenomenon/" target="_blank" rel="noopener noreferrer">Balen Shah</a> and Harka Sampang in the May local election when Lamichhane decided to ride the wave. Since then, the outrage of many Nepalis over the country’s non-performing serial politicians seems to have only grown.To be sure, the 30-year Congress-Communist polarisation that destabilised Nepal’s politics is here to stay with Nepali Congress (NC) and the opposition UML set to retain their dominance in the new federal parliament, but independent candidates will be the <a href="https://www.nepalitimes.com/banner/nepal-poll-results-signal-upset/" target="_blank" rel="noopener noreferrer">new movers and shakers</a>.The RSP has swept 4 out of 10 Kathmandu seats, other independents have also raked up anti-establishment votes rejecting the likes of Ishwar Pokhrel, Onsari Gharti Magar, Pampha Bhusal, Shankar Pokharel, Kamal Thapa, Upendra Yadav, Ramkumari Jhakri and Rabindra Mishra.The Maoist-Centre fared poorly everywhere, showing that voters are not impressed with their efforts to airbrush war crimes, and their past record. The Unified Socialists were punished for their opportunistic and unprincipled involvement in the <a href="https://www.nepalitimes.com/latest/coalition-collision/" target="_blank" rel="noopener noreferrer">5-party coalition</a>. Indeed, the big question now is if the coalition will even get enough seats to form a government.“The general population is not satisfied with mainstream political parties fighting elections through alliances,” says NC leader Minendra Rijal who was not given a ticket for the polls by his party. “The governing coalition is unlikely to fare as well. There was disappointment before, but now people are even more bitter.”Many supporters of the NC and Maoist-Centre appear to have defied party edicts and voted against each other and for <a href="https://www.nepalitimes.com/banner/depending-on-independents/" target="_blank" rel="noopener noreferrer">independent or rebel candidates</a>. Although the UML is also losing some of its support base to new candidates, it has fared better.“The coalition votes were split and scattered. The losers this time are Maoist Centre, Unified Socialists, and the Madhes-based JSP and LSP,” explains political analyst Puranjan Acharya.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221207101212/639059809c7e80680e0ce1f1jpeg.jpg" alt="" width="1435" height="855"><figcaption> </figcaption></figure>Until press time on Thursday, the NC had won 32 seats in Parliament and is leading in 20 constituencies. <a href="https://www.nepalitimes.com/editorial/young-turks-not-getting-their-turn/" target="_blank" rel="noopener noreferrer">Gagan Thapa</a>, who is also NC General Secretary, has publicly declared that he would like to be the next prime minister and replace "those who have had many chances in the past to serve the country”. But that will depend on the fate of NC and the governing coalition in the coming days, it is certain no one party is going to get a majority.The opposition UML is leading in 29 constituencies and has locked in 19 seats. The Maoist Centre is trailing far behind with just 9 seats and leading in only 7 constituencies while Unified Socialist has 7 and so does RSP. RPP has won 4, Loktantrik Samajbadi and Nagarik Unmukti have 2 each while Janata Smajwadi, Rastriya Janamorcha, Janamat and Nepal Kisan Majdur have each won one seat so far. In the far west Tarai, the Nagarik Unmukti party of <a href="https://archive.nepalitimes.com/article/nation/ground-zero-kailali-nepal,2535" target="_blank" rel="noopener noreferrer">Resham Chaudhary</a> and Rastriya Janamorcha are ahead of the race in the Tarai, with more established Madhes-based parties struggling.The UML is doing even better than the NC in seats under the Proportional Representation (PR) mechanism, already raking up 603,708 votes. NC has received 572,698 votes so far. The Unified Socialists, which split from the UML, is not getting even one PR seat.The RSP is also forecast to add many more PR seats, perhaps even becoming the third-largest party ahead of the Maoist Centre in the new federal Parliament. This is a dramatic rise for a party that was formed only six months.Many young and forceful candidates campaigning for good governance, accountability, better service delivery and job-creation have been elected, and there will be more as results come in. The people have spoken, it is now for the antiestablishmentarians to shake things up in Nepal's legislature.NC leader Minendra Rijal told Himal Khabar in an interview: “We must congratulate the RSP, but their road ahead is not easy. People had once voted the Maoists to power by a landslide out of frustration with mainstream parties. We all know what became of them.”He adds: “At the same time, I request my party mates to put a halt on their aspirations for prime ministership for now and instead focus on revamping Nepali Congress which will be in the interest of both the country and the party itself.”<h2>When final results?</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221207101212/639059839c7e80680e0ce1f2jpeg.jpg" alt="" width="1024" height="684"><figcaption> </figcaption></figure>Five days after the general elections, only half of the constituencies have had their votes counted and winners announced. In the lead up to the polls, the Election Commission has estimated all the results for First Past The Post candidates to come in a week’s time, and by 1 December, announce the complete outcome.Authorities had taken 13 days to count the votes following the local election in May, where 34,953 representatives were elected in 6 metropolitan cities, 11 sub-metropolitan cities, 276 municipalities and 460 rural municipalities.The 20 November federal elections, however, had far fewer candidates at 11,543 and also fewer seats to fill in, 275 in the House of Representative and 550 in the Provincial Assembly.Unlike in the local elections, this time one didn’t have to vote for many posts in the ballot. In fact, there were four separate ballot boxes to make it easy for counting," says former Chief Election Commissioner Ayodhi Prasad Yadav. "Which is why we should get the results within a week."Chief Election Commissioner Dinesh Kumar Thapaliya agrees: “By 8 December, we plan to publish the complete results including that of the Proportional Representation. If required we will fly the ballot in from the remote parts of the country.”Many Nepalis <a href="https://www.nepalitimes.com/banner/lower-than-usual-turnout-in-nepal-polls/" target="_blank" rel="noopener noreferrer">did not even bother to vote</a> in the polls, recording the lowest turnout in recent years at only 61%. In Rolpa where the Maoist insurgency began in 1996, turnout was a mere 40% and it was similar in Gorkha from where Pushpa Kamal Dahal of the Maoist Centre is contesting.Much of this is because of the people’s <a href="https://www.nepalitimes.com/banner/dejected-voters-reject-polls/" target="_blank" rel="noopener noreferrer">disillusionment with mainstream parties</a>. But Nepal’s flawed electoral system is also to be blamed. There is no voting by mail despite a 2018 Supreme Court ruling meaning nearly 5 million Nepalis living and working abroad cannot exercise their rights.The excuse for this is that mail voting could open up avenues for fraud, but the real reason is that it will allow for young, educated Nepalis to further undermine the establishment and vote for alternative candidates.The government is also in no hurry to introduce <a href="https://www.nepalitimes.com/editorial/counting-every-vote/">electronic voting machines</a> because the parties don’t trust each other and fear that the other might cheat. Ironic, given that the Maoists got away with tearing up hardcopy ballot papers in Chitwan in 2017.The fact that this is an election of alliances where parties of diametrically opposing ideologies have come together has made it that much more <a href="https://www.nepalitimes.com/banner/voters-cynical-about-electoral-alliances/" target="_blank" rel="noopener noreferrer">confusing for voters</a>. This could have meant that the large proportion of ballot papers were disqualified, skewing the outcome itself.The good news is that learning from the May local election, the Election Commission has this time made four separate ballot papers for different seats.Even so, Nepal needs a more reliable <a href="https://www.nepalitimes.com/editorial/counting-every-vote/" target="_blank" rel="noopener noreferrer">vote counting system</a> in place which as of now is as archaic as they come. And contrary to what our leaders believe, it would make the counting fairer and faster.The longer counting takes, the higher the temptation for the losing side to disrupt the process, perhaps cheat and even resort to violence. Some of this is happening in constituencies where established leaders are trailing.

Sonia Awale

1250x600

1084x550

The Nepali people have spoken

With Saturday's deadline on Malaysia’s announcement of new criteria for selecting private recruiting agencies for migrant workers having lapsed, Nepal and Bangladesh have rejected the conditions.
The Malaysian move three weeks ago came in the aftermath of deadly GenZ riots in September, when Nepal’s interim government does not have designated heads in the Foreign Ministry and the Labour Ministry.
Interim Prime Minister Sushila Karki instructed the Labour Ministry to examine the implications of the standards and recommend appropriate steps to address them, but it has said it cannot send Nepali workers to Malaysia based on those criteria.
“In line with Nepal’s foreign employment policy and regulations, we are currently unable to accept or implement the proposed criteria,” says Pitambar Ghimire, spokesperson at the Ministry of Labor, Employment and Social Security in Kathmandu.
In response to the government’s request for their opinion on the Malaysian stipulation, the Nepal Association of Foreign Employment Agencies (NAFEA) has also flatly rejected the criteria, saying it could create a harmful syndicate and restrict fair competition, violate Nepal’s Constitution and laws, and increase recruitment fees that workers must pay.
On 25 October, the Malaysian Ministry of Foreign Affairs sent letters to the governments of Nepal, Bangladesh, Burma, Pakistan and India with 10 criteria meant to ‘rationalise the number of licensed private recruitment agencies permitted to facilitate recruitment and placement of workers to Malaysia’.
The proposed criteria include: at least five years of operating experience, deployment of 3,000 workers in the past three years of operation, experience sending workers to at least three countries, valid licenses and good conduct certificates, five employer testimonials, operating their own training and accommodation centres, and even a requirement for the staffing agency to have a 10,000 sq m office maintained for three years.
“We have communicated our views to the Ministry of Foreign Affairs, and have proposed discussing various labour related matters with our Malaysian counterparts diplomatically through bilateral dialogue and negotiations including renewal of the Nepal-Malaysia labour agreement,” Pitamber Ghimire said.
NAFEA has urged the government to prevent this measure from moving forward using diplomatic channels, and has held &nbsp;several gatherings and press conferences opposing the proposal since the Malaysian letter was received three weeks ago.
“We have taken commitment letters from members that they will not be engaged in activities related to the syndicate,” said Sujit Shrestha of NAFEA. “And if they break the commitment, they will face consequences including the revocation of their NAFEA membership. These letters also send a strong message to the government that this is irrevocably and collectively rejected by the industry.”
Bangladesh has also not accepted the proposal despite the 15 November deadline to send a list of recruiters that meet the criteria. That in itself would have been an impossible task to complete to begin with even if the government had accepted the proposal.&nbsp;
According to media reports, Bangladesh has sent a letter to the Malaysian government requesting that three of the proposed criteria be relaxed. This includes flexibility regarding the requirements for a 10,000 sq ft office, a dedicated training center, and the condition of having deployed 3,000 workers in the last five years. Despite the official request to Malaysian authorities, the Bangladeshi Government has also been collecting applications from recruiters who meet Malaysia’s proposed criteria, raising confusions about the contradictory stance.&nbsp;
Just like NAFEA, the recruitment association in Bangladesh, the Bangladesh Association of International Recruiting Agencies (BAIRA) has also outright rejected the proposal including in a letter to the Bangladeshi government, calling the criteria ‘unprecedented and exclusionary, unreasonable, discriminatory and syndicate-driven &nbsp;that would effectively disqualify 99% of legitimate agencies from participation’.&nbsp;
Now that the ball is back in Malaysia’s court and the proposal has not gained much support from two of the major origin countries, it will be interesting to see how they respond.

Nepal, Bangladesh reject Malaysian conditions

The very first frame in The Lama’s Son starts with a vision of Shangrila and the quest of a mythical utopia in the Himalaya when the rest of the world is crumbling away. It is also the personal search of filmmaker Kesang Tseten, but what he finds there are adherents of the Bon Po faith clinging to the last remnants of a culture as it erodes away like the sandstone cliffs of Mustang. “It was while editing the documentary that the story became distilled: how does what we see in the high Himalaya relate to the notion of the Shangrila idyll that especially the West ascribed to them,” asked Tseten during a recent trip to Kathmandu from Berne where he now lives. He continued: “Often and perhaps rightly criticised as an orientalist construct, I wondered if there was any basis at all to the Shangrila notion, and I hung the film on that idea.”&nbsp; Tseten takes us to the vast vistas of Mustang and Dolpo, a landscape of his Tibetan ancestors. This is as much an intimate documentation of families on Nepal’s Himalayan rimland torn between remoteness and globalness as it is about Tseten’s own quest for rootedness.&nbsp; We start from Lubra, a 3,000m village in Mustang the 15 households of which follow the Bon faith. Lama Tsultrim is from a 900-year-old lineage of the animist faith and an exponent of the tradition that is slowly being subsumed first by Buddhism and now modernism. For Tseten, the material is familiar, and not at all exotic as it is for non-Nepalis and indeed for many urban Nepalis. Bon, founded in Tibet, predates Buddhism, but over time, the two religions have come to resemble each other.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45.jpg" data-media-id="editor_0" data-image-id="20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  ‘Both believe in karma, rebirth, and that humans can become enlightened. Nature and spirits are predominant in Bon, and rituals are what keep them benign and alight,’ says Tseten, who rarely narrates in his documentaries. “This is not really a personal film as such, but it has a point of view,” Tseten said. “I decided to have a voice-over on this one and cast my presence in the film.”&nbsp; Lubra's Lama Tsultrim is called upon to perform rituals from Kagbeni and other villages, but there is no one to continue the tradition after him, which is passed from father to son. Lama Tsultrim’s son (hence the title of the film) is a sushi chef in New York and has been gone for 20 years. “The Lama is like a setting sun, his son should come back and take over his father’s responsibilities,” says a local youngster chatting with friends. “If he dies tomorrow, where do we go? We can’t just light butter lamps ourselves to the gods.” It is not only the Lama’s son who has left. The village is nearly empty, and more are planning to leave. One of them is Chimi, a teacher who will be joining her fiancé who is an Uber driver in New York. Her brother is already in Hong Kong. In Lo Manthang a local is back home for a three-month vacation after being in New York for 12 years. A shopkeeper was in Japan for several years, and has returned. “Everything has changed, our language, our tsampa, our religion. We used to work and live together, now the children live separately,” says a middle-aged woman. “There are roads now, and vehicles stop right outside our house, but what’s the point? No one stays home.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c.jpg" data-media-id="editor_1" data-image-id="20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  Like most of Tseten’s films, The Lama’s Son is an honest documentation of a place and people whose lifestyle, culture and heritage cling precariously to the past. In Dri village we come across local women filling their buckets with water. Tseten asks them why the village is so empty: “Where is everyone?” The women reply that they are “here, there and everywhere”. Then it is their turn to ask Tseten about where he lives and what he is doing in their village. Migration is a recurring theme in Tseten’s documentaries from We Corner People, In Search of the Riyal, or Saving Dolma. His previous film Diversity Plaza documented the lives of Nepali and Tibetan emigrants in Jackson Heights in the borough of Queens in New York.&nbsp; Diversity Plaza was shown at DOC NYC in 2023, and The Lama’s Son will be one of only two Asian films shown next week at one of the biggest documentary film festivals in the world.&nbsp; “The Lama’s Son is not loud, not attention grabbing but intimate, so I was surprised they chose a quiet film for a big, flashy event,” Tseten told us. In Lama’s Son, we also see how climate breakdown is impacting Nepal’s trans-Himalayan regions. Lama Tsultrim shows us the aftermath of a recent glacial flood that swept away houses and fields. The debris-covered farms are as hard as cement.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff.jpg" data-media-id="editor_2" data-image-id="20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  The nearby village of Dhey at 3,900m is a high and dry cold desert. Farmers get one crop in a year, but the springs have gone dry and there is no snow in winter. So they are relocating to New Dhey, closer to the road. We follow Kesang Tseten to Samling in Dolpo, which at 4,200m is another Bon village. Locals are preparing for the Walchu festival in which Lama Sherrab carries out elaborate rituals to appease spirits that can turn malevolent. But unlike Lama Tsultrim in Lubra, Lama Sherrab has a community of lamas to help him, including two sons, one of whom will eventually take on his role. We move on to the adjacent village of Bicher and listen in as locals talk about how despite being dirt poor, they thrive in scarcity and are resilient. “We wear sheepskin, eat stew and yak meat, and drink wine. But we are very poor, we have nothing. Look at how dirty our clothes are. We may be dirty, but we have few illnesses,” says one. But even here in Upper Dolpo, a week’s walk from the nearest road, things are changing. There are mobile phones, readymade clothes and instant noodles.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78.jpg" data-media-id="editor_3" data-image-id="20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  At the Walchu ritual, Tseten watches men and women with hand-woven blankets and down jackets sing and dance after the main ceremony. He narrates: “Bon is sustained by a way of life that fosters a fine but fragile balance between nature and people, where humans come before gods. This is what lies at the heart of Shangrila if there is such a thing.” The film then takes us half-way around the world to a Bon centre in New York, but (spoiler alert) the eponymous Lama’s son never appears. He did not want to be filmed, but it makes for a more powerful portrayal of the life of emigrants forever trapped between two worlds. “Bon villages may be in danger, but the Bon has spread widely across the world,” narrates Tseten, a director who likes to call his storytelling ethnographic, and avoids coming to an apt conclusion. Lama Sherrab’s words after the Walchu ritual is a perfect segue:&nbsp; “Whether you say om mani padme hum (in Buddhism) or matri mi yu (in Bon) they are the same. When you go up, it’s the same heavenly realm. If you go down, it’s still the lord of death who awaits. There isn’t a separate heaven and hell for Buddhists and Bon, it has to be the same for both.” &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d.jpg" data-media-id="editor_4" data-image-id="2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d" data-rendition-name="original" width="7087" height="10004" loading="lazy" alt="The Lama's Son NT"> </figure>  The Lama’s Son by Kesang Tseten, 2025 Shunyata Films To be screened at DOC NYC 16 November at 2:05PM local time, Online: 17-30 November Details <a href="https://www.docnyc.net/film/the-lamas-son/">here</a>.

The periphery cannot hold

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

Nepal needs to use its money better

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

nepal-elections-2022

Back to the future

The Nepali people have spoken

Nepal, Bangladesh reject Malaysian conditions

The periphery cannot hold

Nepal needs to use its money better

Global warning bell in Belém