<figure><img width="1500" height="1125" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02f09c7e80680e0a36a9jpeg.jpg" alt=""/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>After nearly two years of nearly zero tourist arrivals and revenue, Nepal looks set to welcome international tourists again after the government on Thursday introduced <a href="https://www.nepalitimes.com/latest/nepal-relaxes-entry-for-tourists/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-relaxes-entry-for-tourists/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNHnLyYWvLXJvsJU8eaBdNrKPZ6tVw">revised immigration</a> entry protocols. Tourists fully vaccinated against Covid, with the second dose 14 days before the date of travel, will no longer have to quarantine after landing in Kathmandu and can get visas <a href="https://www.nepalitimes.com/here-now/nepal-should-now-allow-visa-on-arrival/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepal-should-now-allow-visa-on-arrival/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNHjF2QHUC13ukwzJScBCBN92EtMBQ">on arrival</a>. Earlier, they had to get visas from Nepal’s missions abroad and quarantine for seven days at a hotel in Kathmandu at their own expense.Partially vaccinated and unvaccinated visitors will have to obtain visas from Nepal’s embassies in their home countries or elsewhere, and will still have to spend 10 days in a government approved hotel in Kathmandu and get a PCR negative test before they go out and about.Tourists coming via land, except Indians who are visa-exempt, must arrive with their visas from Nepali diplomatic missions and be subject to a negative antigen test at the Chinese or Indian borders. “The government looked at the current trend of Covid infections, transmission and disease control to reach this decision,” says spokesperson of the Immigration Department Jhanka Nath Dhakal. “Entry of fully vaccinated tourists becomes easier as a lot of additional paperwork can be avoided.”   However, all visitors, including fully vaccinated ones will have to present a negative PCR or other test report done not longer than 72 hours before their flight, and bring a printout of the international arrival form at <a href="http://www.ccmc.gov.np/" data-saferedirecturl="https://www.google.com/url?q=http://www.ccmc.gov.np/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNETnSNgD6N7OXNBWaTNnPNsbVT4UQ">www.ccmc.gov.np</a> to immigration for visa on arrival.The new protocols were issued even though the Covid-19 Crisis Management Committee (CCMC) itself does not have legal standing because an ordinance establishing it has lapsed because of the continued political impasse in Parliament.Nepal’s tourism industry had been lobbying strongly with the government to ease restrictions as the case load and fatalities in Kathmandu drop, and the vaccinate rate goes up in countries from where most visitors come to Nepal.  They argued that millions of jobs were at stake, investors were defaulting on loans for hotels, airlines and restaurants and the government was losing the $800 million it used to earn a year from tourism prior to the pandemic. <img width="1920" height="1080" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02f59c7e80680e0a36aajpeg.jpg" alt="">Members of the tourism industry had criticized <a href="https://www.nepalitimes.com/banner/call-to-ease-entry-of-tourists-to-nepal/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/call-to-ease-entry-of-tourists-to-nepal/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNHqIs-F1N3YhbPuKTGkxsfontRJvw">earlier entry regulations</a> as being cumbersome and confusing, detracting potential visitors. For example, tourists needed to submit NTB or Department of Tourism-approved travel itineraries to obtain visas on-arrival while quarantining for seven days.  As a result, only tourists with well-connected agents could arrange the paperwork and arrive easily. Travel trade stakeholders complained of arbitrary visa requirements and ad hoc decision making.  While most tourists were previously discouraged by the convoluted regulations, news of the revised protocol has generated an overwhelmingly positive response.  Deepak Raj Joshi, the former CEO of the Nepal Tourism Board (NTB) is glad the government finally took the decision.“The tourism industry is now buoyant, stakeholders are pleased and demand from potential tourists is massive, so we must aggressively and effectively communicate the return of Nepali tourism into source markets,” Joshi says.  A streamlined entry process is a much-needed boost for tourism, one of the sectors hit hardest by Covid. Nepal got nearly 1.2 million tourists in 2019, but this figure dropped to only 220,000 in 2020 – mot of them who had arrived before the lockdown in March that year. So far this year, there have been only 70,000 visitors – most are either mountaineers or repeat trekkers, or those familiar with Nepal and have some connections here. <figure><img width="935" height="398" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02f89c7e80680e0a36abjpeg.jpg" alt=""><figcaption>Tourist arrivals in Nepal from January to November 2020. Data: NEPAL TOURISM BOARD</figcaption></figure>Despite the <a href="https://www.nepalitimes.com/here-now/survive-2020-revive-in-2021-and-thrive-in-2022/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/survive-2020-revive-in-2021-and-thrive-in-2022/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNEO67ibb82phNtJ_SPK2OBPcSmA1g">socio-economic fallout </a>from the pandemic, the tourism industry has prepared well to host tourists again. Vaccine penetration in the hospitality sector is high, and the new, simplified entry requirements are the next step in restoring a “new normal” for tourism alongside Covid in the long-run.Most frontliners working the tourism industry are already vaccinated, and in popular destinations such as Langtang, workers as well as locals are jabbed. Trekking and mountaineering may soon continue as normal, with expedition groups usually no larger than 20-30 members and everyone involved inoculated.There has been a trickle of trekkers coming to Nepal even under the older stricter rules, and there are expedition already at base camps of various mountains including Manaslu, Dhaulagiri and Kangchenjunga. There have been no climbing permits issued for Mt Everest.“Lobbying is underway to implement a ‘V-to-V’, vaccinated-to-vaccinated tourism model whereby vaccinated guests are hosted by vaccinated hospitality services,” says Joshi. Such a model is particularly relevant for tourists coming overland through border cities such as Birganj, Biratnagar and Nepalganj and have high vaccination rates, and the visiting Indians themselves are increasingly getting inoculated. Tourism as an industry is based on trust and hospitality as it sells services, leaving no room for negligence and error. This makes it a relatively safer sector than others, says Joshi. “If a tourism-based business doesn’t follow health guidelines and helps spread disease, it loses trust and trade for life, making the entire industry cautious and aware,” he says. “That the government readily allowed crowded religious processions to go on while stalling on safe tourism speaks volumes on flawed planning.” <img width="1448" height="2048" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02fa9c7e80680e0a36acjpeg.jpg" alt="">Elsewhere, on-arrival visas have also been resumed for those returning for funerals of relatives, those who are convalescing, or returning to care for elderly citizens – but they have to produce negative Covid tests and recommendations from local governments and hospitals. On-arrival visas are also on offer for returning non-resident Nepalis and foreigners married to Nepali nationals. Nationals of the following countries will need to have visas before they arrive in Kathmandu: Zimbabwe, Swaziland, Cameroon, Somalia, Liberia, Nigeria, Ghana, Ethiopia, Iraq, Palestine, Afghanistan and Syria.

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Nepal reopening for tourists

<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

Rivers have been the lifelines of civilisations with their dynamic ecosystems providing vital services for human survival and ecological balance through the ages.&nbsp; But accelerating anthropocentric footprints are causing severe, and often irreversible, damage to river systems across the world, including those across High Asia, a region that sustains nearly a fourth of the global population downstream. An example is the <a href="https://nepalitimes.com/here-now/how-the-bagmati-civilisation-is-becoming-uncivilised" target="_blank">Bagmati River</a> that courses through Kathmandu, crosses the Himalayan foothills to join the Ganga in India. A river that once shaped the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/when-it-comes-to-water-pollution,3196" target="_blank">Kathmandu Valley Civilisation </a>is now a polluted and biologically dead water body constricted by urban sprawl, choked by construction debris, chemical waste and untreated sewage.&nbsp; The loss of a sacred river is tragic enough, but its hazards related to health, life and livelihoods are not limited to the Valley, nor is its enormity fully gauged by the metrics of fatality, income loss, flood return periods, runoffs, embankment failure.&nbsp; It is a systemic collapse of ecological integrity, socio-economic stability and cultural heritage, affecting its downstream users as well. The death of Bagmati is a peril for a population size way bigger than circa 5 million residents of Kathmandu Valley. The degradation started in the 1980s and has accelerated. Why has not enough been done to save this iconic river that runs through Nepal’s capital?&nbsp; The Bagmati River Basin Improvement Project (BRBIP) was designed to make headway in restoring the river with a sewage treatment plant, dams for storing water to support dry-season runoff, recharge groundwater, creation of <a href="https://archive.nepalitimes.com/page/resurrecting-bagmati-the-river" target="_blank">green biodiversity corridors</a> along the river bank to also serve as recreation areas, reduce the urban heat island effect, and also provide cultural continuity. The project also envisages collection of hydrological data for managing Bagmati multipurposewater systems and providing flood forecasts and early warnings aimed at protecting lives and property, among other things. Most importantly, the project takes the integrated water resource management approach, which, in principle, is a holistic and collaborative way of managing all elements of the water cycle to ensure water security, public and environmental health and amenity.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c.jpg" data-media-id="editor_3" data-image-id="20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c" data-rendition-name="original" width="2126" height="1577" loading="lazy" alt="Bagmati NT"> </figure>  This should pave the way for managing a river as a connected ecological, social, and economic system by enabling coordination across agencies and disciplines, stimulating technological innovation and financial investment. The success of this approach depends on long-term political will and commitment that transcend political cycles, but also needs strong community and civil society in defining issues and proposing solutions, creating and sharing knowledge, taking independent action to inform practice, monitoring and evaluating policies, and participating in public decision-making. Civil society, especially, in making the <a href="https://archive.nepalitimes.com/page/encounter-with-bagmati-river" target="_blank">revival of the Bagmati River</a> a pressing governance issue. The Bagmati Action Plan 2009, a precursor to the BRBIP, was designed in response to lawsuits filed in 2000 and 2004 by an independent legal practitioner of Kathmandu against waste dumping in the river.&nbsp; It took him almost two decades of legal battle for Nepal’s Supreme Court to pass orders for mandatory septic tanks in all homes in Kathmandu Valley, relocation of squatters from Bagmati river banks to government-built houses, and embargo on dumping and burying garbage on the banks of the river and its tributaries. Despite court orders, however, actual results have been unsatisfactory. Restoration of Bagmati barely made it to any political debate or electoral manifesto this time. Treatment plants have not been operational for years, yet no one is held accountable. The population ignores waste segregation or single-use plastic rules to check littering.&nbsp; The current condition of the river therefore seems to have more to do with the lack of public awareness and behaviour change than the failure of various master plans. Why does the deep danger of a dead river fail to arouse widespread civil society concern, let alone action? The apathy is perhaps underlined by an innately anthropocentric understanding of the river as a mere resource to be exploited, rather than the backbone of existence.&nbsp; Such a paradigm shift is possible when river or river systems are understood to be necessary for &nbsp;a harmonious coexistence with human populations. The more pertinent question is not whether a dead river can be restored because there are many examples from around the world where that has been successfully achieved. It is whether we choose to restore our rivers for intergenerational equity. This would require a holistic perspective and political will to revive reverence for a river system so that its symbiotic relationship with human settlements can be restored. Roshni Gurung is Research Assistant, River Basins at the International Centre for Integrated Mountain Development (ICIMOD).

A lifeline becomes liability

As a direct fallout of the Israel-American war on Iran, Nepal on Monday nearly doubled the price of aviation fuel in a move that is going to impact during the spring peak tourism season. The steep price hike of jet fuel appears to have been made to cushion the impact on the general public. The price of petrol, diesel and cooking gas were also hiked for the third time in a month on Thursday.&nbsp; Aviation turbine fuel (ATF) will now cost $2,237/ton up from $1,207. The cost of ATF in Kathmandu was <a href="https://nepalitimes.com/news/sky-high-fuel-price-hits-nepal-s-tourism-airlines" target="_blank">already one of the highest among Asian airports</a>, and this price hike will affect mostly long-haul flights to Istanbul, Seoul and Narita for airlines that need to refuel in Kathmandu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404130420_4ae075d1e871fc5608cf242d6e309005d30cfdb6e6d0ecfb45ca7388a851c6aa.png" data-media-id="editor_1" data-image-id="20260404130420_4ae075d1e871fc5608cf242d6e309005d30cfdb6e6d0ecfb45ca7388a851c6aa" data-rendition-name="original" width="1784" height="1294" loading="lazy" alt="aviation turbine fuel prices"> </figure>  Domestic airlines, which paid Rs127 per litre, will now have to pay Rs251 for their turboprop planes. “We have no recourse but to pass this on to passengers as a fuel surcharge,” said one executive of a domestic airline in Nepal. As it is, Nepal Oil Corporation levied a hefty tax on petrol and ATF in order to subsidise diesel and cooking gas. Many analysts were expecting a fuel price hike, but the near-doubling of the price of ATF means the new Nepal government is trying to protect ordinary citizens from raising the price of diesel and LPG even more than it has so far. Aviation fuel in Nepal is trucked in on tankers from Indian refineries and its price is highest in Kathmandu, and less in Bhairawa and Pokhara — transportation costs being higher depending on distance. But even in Bhairawa, ATF prices have doubled for the only international airline that serves it, Thai AirAsia.&nbsp; Most airlines flying Kathmandu from nearer airports in India, the Gulf and Southeast Asia will be less impacted because they can fly in on full tanks and need minimum refuelling in Kathmandu. But carriers like <a href="https://nepalitimes.com/banner/high-cost-lays-aviation-low-in-nepal" target="_blank">Turkish Airlines</a>, Cathay Pacific, Korean Air, &nbsp;and Nepal Airlines which fly wide body aircraft on long-distance routes will be hit hardest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026040305040_a40db74375ebe0c28e7c35477bc262df9ae392a84e7bfa4033996181d69e0209.jpg" data-media-id="editor_3" data-image-id="2026040305040_a40db74375ebe0c28e7c35477bc262df9ae392a84e7bfa4033996181d69e0209" data-rendition-name="original" width="1032" height="689" loading="lazy" alt="sky high prices"> </figure>  However, ATF costs have also been raised in regional airports like Hong Kong, India and Singapore. Aviation fuel at New Delhi airport has risen to $1,698/ton. Korean Air is adopting emergency measures to reduce expenses to make up for rising fuel costs. South Korea gets nearly all its fuel from the Gulf, and the blocking of the Strait of Hormuz has been especially damaging for the country. Fuel makes up more than a third of the operating cost of airlines, and even a small increase in ATF prices can make a big difference. Crude oil prices have increased 50% since the West Asia war began on 28 February, and global ATF prices have doubled.&nbsp; Airlines in Asia, including Nepal, face a double shock. The first is the higher fuel cost, and the second is that fewer people are travelling. Nepal’s tourism arrivals fell in March compared to February. India has added up to 20% fuel surcharge on domestic flights, and has reduced flights by 12%. Chinese airlines have also been affected, with China Eastern preparing for a significant impact of the Gulf war. It has added fuel surcharges to new tickets, as have Cathay Pacific, Thai International and Air Asia. Vietnam has drastically cut the number of domestic flights, and the Philippines will ration ATF. Australia imports 90% of its ATF mainly from China which has stopped export to ensure domestic supply to its own airlines. Carriers like Qantas have curtailed flights, changing aircraft type on long-haul routes, and a fuel surcharge of up to 20% have been added to tickets. Most Asian airlines are adding fuel charges only to new tickets, and the increase will not affect the price of pre-sold tickets issued for April and May.

Fuel price shock hits Nepal aviation

Nepal’s new government hit the ground running with the arrests of former Prime Minister K P Oli and home Minister Ramesh Lekhak early Saturday morning.&nbsp;
Their dramatic detentions followed an inquiry commission report recommending that Lekhak, Oli, and former Police chief Chandra Kuber Khapung be investigated and prosecuted for negligence in failing to stop the killing of 19 young protesters by security forces during the protests on 8 September.&nbsp;
Interim PM Sushila Karki’s government faced considerable criticism from GenZ activists at the end of her 7-month tenure for failing to release the report and hold the previous UML-NC coalition to account.&nbsp;
Karki had left any decision on the report’s findings to new RSP government, but her government released it after the content was leaked earlier this week, a day before Nepal’s newly elected lawmakers took their oath of office.
By making the arrests of Oli and Lekhak as its first order of business, the new government, and especially Home Minister Sudan Gurung and Prime Minister Balendra Shah, have tried to show that they are decisive and mean business.&nbsp;
It has been hailed by many as signalling that Nepal’s new and young leadership will back up its pledges with action. However, others including the UML and some constitutional experts, say that the arrests have not followed legal procedures. The UML has mobilised its affiliated groups to start nationwide street protests.&nbsp;
The main divide seems to be over the perception that the new government is only interested in justice for the perpetrators of the 8 September Parliament massacre, and not against those who organised arson and vandalism of government buildings, homes of politicians, businesses and the media the next day.&nbsp;
While some celebrate what they see as the beginning of justice for the victims and survivors of the September violence, political analysts and legal experts express alarm over a lack of adherence to the rule of law.&nbsp;
K P Oli has a lot of experience being behind bars. He was jailed a dozen times in 1970s by the Panchayat regime for his extreme left activism and then spent 14 years in prison between 1974-1988.
Critics argue that the former leaders were denied due process and label their arrest a “political vendetta."
RSP supporters had made similar arguments in October 2024 and April 2025 that the arrest of party chair Rabi Lamichhane over misappropriation of funds from numerous cooperatives were &nbsp;politically motivated.
‘What is happening is unacceptable,’ wrote former minister and diplomat Nilamber Acharya wrote on Saturday morning. ‘Such acts of revenge and crackdowns do not bode well.’
In response to accusations of the arrests being partisan and politically-motivated, Home Minister Sudan Gurung took to social media, saying that the new government is fulfilling its promises: ‘No one is above the law,’ he wrote. ‘This is not revenge, it is the beginning of justice. I believe now that the nation will now take a new direction.’
There is also concern the new leadership has jumped the gun to implement the findings of the inquiry commission, which has itself been criticised in some quarters for concentrating on the events of 8 September rather than investigating the perpetrators of the anarchy on 9 September.&nbsp;
The first meeting of the Council of Ministers made the immediate implementation of the GenZ Movement Inquiry Report its first priority.
But there are questions as to whether the execution of the report will be impartial. Home Minister Gurung will now dictate how the recommendations &nbsp;will be conducted, since he is himself referenced in the report in connection with the unrest on 9 September.&nbsp;
In fact, the report also outlines how supporters stormed Nakhu Prison on 9 September to organise Rabi Lamichhane’s jailbreak. Will Minister Gurung also go after his own party's leadership? &nbsp;
With the UML already calling for nationwide protests against the detention of its leaders, there is concern that Nepal is plunging straight into turmoil instead of stability.
The UML leadership has been unrepentant about the 8 September events. Oli has defiantly blamed infiltration and outside forces for the killings, and unlike the Nepali Congress the UML has not managed its own leadership changeover.&nbsp;
The NC under Gagan Thapa as well as the Nepali Communist Party of Maoist leader Pushpa Kamal Dahal have so far been silent about the detentions even though former Home Minister Ramesh Lekhak is from the NC.
Oli and Lekhak’s arrests will now be challenged in the courts. But their detention also signals to Nepal’s political old guard that the tables have turned: legacy leaders cannot be complacent and assume they will disappear from national consciousness for past deeds without being held accountable for what happened during their watch.
The RSP government under Prime Minister Balendra Shah seems determined not to let bygones be bygones. But while that is all and well, it remains to be see whether the party can deliver on the need of the electorate for tangible governance reform.
The danger is that the new rulers may be defined by the same tactics of political revenge as its predecessors in the name of meting out justice.

New Nepal government signals action

Nepal got a radically new and young government this week, and among the many choices it has to make will be to decide on embracing bleeding edge technology like cryptocurrency and the blockchain. All crypto activities are currently banned by Nepal Rastra Bank (NRB), and violations can be punished by confiscation of bought goods, fines of three times more, and prison time.&nbsp; “This ban comes from ignorance, not strategy,” says blockchain expert Bijay Bogati, Head of Engineering at Mandarix IT services. “Nobody at the policy-making level in Nepal really understands the technology.” Bogati is also building the Himalayan Art Council’s art certification blockchain, which tracks and archives the transaction history of traditional Paubha paintings as non-fungible assets, ensuring the original artists are credited and paid if the artwork changes hands. &nbsp; This group of technology, often called Web3, is not a fringe movement anymore. Some governments recognise that digital assets have to be integrated into their economies, although there are also those who say it is a corrupt bubble.&nbsp; Donald Trump announced a strategic bitcoin reserve for the US government a year ago. El Salvador has adopted bitcoin as legal tender, and even has ATMs for conversion. France recognises it.&nbsp; Bhutan uses its surplus hydroelectricity to mine bitcoin at its Gedu data center and has used earnings to invest in its Gelephu Mindfulness City project, boost civilservant salaries, and curb the brain drain.&nbsp; In this month’s GenZ-inspired election, Nepal’s voters replaced the older generation of leaders with mostly millennials who are more fluent with new technologies.&nbsp; The tech sector has grown with the country exporting nearly $1 billion worth of software products last year. This is seen by some as the perfect timing to harness the technology in the national interest.&nbsp; NEPAL’S BAN Central banks and financial regulators are averse to switching to technology, and NRB fears crypto transactions could foster money laundering, terrorism financing, capital flight and tax evasion.&nbsp; Critics say this is hypocritical, like a pot calling the kettle black, because it ignores the fact that Nepal’s centralised financial regulator has itself not been able to control rampant corruption, money laundering and tax malpractice. The NRB justifies its ban by saying that people were getting scammed or were at risk of losing money when influenced to bet on digital assets. Others reject this reasoning, saying it dictates how people spend their money.&nbsp; A real concern for Nepal in recognising crypto would be in maintaining ties with bodies like the International Monetary Fund (IMF) and other international creditors, just as the backlash some countries have faced.&nbsp; In Nepal, it is the cybercrime department of the Central Investigation Bureau that invigilates, and it has made a handful of arrests since 2017.&nbsp; But ambiguous laws and a lack of knowhow about the technology means enforcement has not been easy. Says Bogati: “Crypto persists in Nepal. The ban just pushes activity underground.”&nbsp; BHUTAN’S PLAN Bhutan started mining Bitcoin in 2019, when the price for one BTC was $5,000 -- it is now over $70,000. The logic was simple: the country had excess hydroelectricity which was used to power supercomputers to mine bitcoin.&nbsp; The energy was renewable and fit in with Bhutan’s sustainability commitments. The country’s cold climate meant less heat was required to cool the machines.&nbsp; It was state-owned entities doing the mining. Crypto was not something the average Bhutani used every day, and the country has accumulated over 13,000 BTC valued at up to $1.4 billion — 40% of its GDP. It has sold some BTC and used it to raise civil servant salaries and try to reverse youth outmigration.&nbsp; Nepal also has surplus clean energy, especially in the monsoon, and also has natural cooling in the mountains. It also needs money. Every terawatt-hour (TWh) of electricity is worth roughly $84.8 million in gross mining revenue at current bitcoin prices. Nepal’s current surplus of about 3TWh would translate into $254 million a year. Selling the same amount of electricity to India earns Nepal only $56 million a year. In the near term Nepal’s surplus hydropower is expected to reach 14TWh, generating about $1.2 billion a year — almost 3% of its GDP.&nbsp; Currently, Nepal does not have surplus power in winter, the hardware costs to set up the mining operation would be huge, and the value of bitcoin is volatile.&nbsp; Bhutan also made over 100 cryptocurrencies usable for tourists for flights, hotels, and restaurants. After adopting bitcoin as legal tender, tourism to El Salvador surged 22%. Nepal is already a major tourism destination, and adding crypto infrastructure would attract global high-income remote workers who deal in crypto.&nbsp; Experts say there is always the risk of putting all the eggs in the bitcoin basket. It is a speculative asset, and could crash, governments may suddenly outlaw it citing its heavy energy use. Breakthroughs in quantum computing might break its cryptographic basis.&nbsp; But in the 15 plus years it has been active, bitcoin has survived crashes and regulatory and technological attacks.&nbsp; Perhaps as important as the money is the message that Nepal would send out about being open to innovation and investment, providing its engineers jobs within Nepal, and signaling its tech ambitions. For a country so dependent on remittance, using crypto would also save about 4% on transaction fees, as is happening in the Philippines now. The estimated 5 million Nepalis overseas send home $11 billion a year, although the unofficial amount is said to be much higher.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026032803030_ff2106a8941d17e05d4defef183e05a226f03fe67b4b51507d134ad42971534a.jpg" data-media-id="editor_0" data-image-id="2026032803030_ff2106a8941d17e05d4defef183e05a226f03fe67b4b51507d134ad42971534a" data-rendition-name="original" width="1777" height="1000" loading="lazy" alt="Web3 Nepal"> <figcaption>Photo: YALE UNIVERSITY</figcaption> </figure>  All this could be points to ponder for the youth-led RSP when it forms a government this week. It is especially relevant in addressing the party’s main mandate of reducing graft, and could be sold to international creditors like the World Bank and the IMF as a good investment when most capital expenditure projects in Nepal face delays and quality issues because of corruption. One way would be to create a blockchain system for government projects. Funds would be withheld until work is completed, reducing cheating and delays.&nbsp; Any Nepali could poke around to see which firm is granted which project at what cost, and how much progress has been made would improve government efficiency and help reduce fraud. “Lots of Nepalis are actively in Web3/Blockchain development despite the ban. The talent exists,” says Bijay Bogati. “But developers are scared. People with real skills do not want to take the risk.”&nbsp; Raunak Raj Rauniyar leads Superteam Nepal, a global talent network of creators and developers in Web3. He organises regular hackathons and bounty hunts where the best projects can win cash prizes.&nbsp; In a recent college tour across Nepal, it introduced and connected communities to blockchain developers.&nbsp; “We found that there is talent across Nepal. In fact participants outside the Valley were much more engaged and hungrier than those in it, perhaps because they have fewer tech events overall,” says Rauniyar.&nbsp; “More women are involved, the ratio is about 70-30, up from perhaps 90-10 a few years ago.” The Janamat app built on the blockchain is a recent Superteam product that lets any Nepali with a citizenship to anonymously share opinions and vote. This could let the government quickly understand public sentiment of Nepalis home or abroad instantly and on a wide range of topics.&nbsp; During the 5 March election, a Janamat poll for Jhapa-5 showed that 87% thought Balendra Shah would win, which accurately predicted the actual result. Users on the app are now discussing and voting on who should be in the RSP Cabinet (see page 1).&nbsp; WHAT NEXT Nepal continues to be wary and circumspect of these emerging technologies, responding with outright bans that it can hardly even enforce, and maintain an illusion of control.&nbsp; The alternative would be to identify talent which exists, and adopt these technologies, regulate it effectively and reap the benefit. It could make it easier for people to spend and invest their money in Nepal, create jobs, and even slow the brain drain.&nbsp; The timing seems to be just right, as a new forward-looking government of technocrats assumes control. Nepal is set to have a 35-year-old prime minister, and a supermajority government that will hopefully be stable for the next five years. &nbsp;

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New Nepal government signals action

Time for Nepal to enter Web3