In July, the government announced an amendment to Nepal’s Printing and Publication Act, reportedly without the knowledge of the Minister for Communication and Information Technology Prithvi Subba Gurung.&nbsp;
The amendment gives Nepal’s Chief District Officer (CDO) exclusive authority to regulate the registration, operation and renewal of <a href="https://nepalitimes.com/opinion/comment/surveying-nepal-s-digital-landscape">online media</a>, relieving the Department of Information of a responsibility it had since 2016 through the Online Media Operation Directive.&nbsp;
This gives local bodies unchecked power to register and suspend <a href="https://nepalitimes.com/news/the-new-news-age">online news platforms</a> ‘as they deem fit’. This is the latest in a series of decisions to suppress Nepal’s constitutionally guaranteed press freedom.&nbsp;
Successive governments since 2015 have attempted to enact laws that suppress criticism of officials, disagreement with &nbsp;government policies and the right to information. Although veiled as an attempt to regulate excesses on social media, the primary targets of the draft Media Council Bill are <a href="https://nepalitimes.com/editorial/messaging-is-the-message">journalists and journalism</a>.&nbsp;
The Bill will replace the 1991 Press Council Act, and has been passed by the National Assembly and went to the House of Representatives three years ago, but ultimately lapsed after the term of the lower House ended in 2022.&nbsp;
It is being debated again in the House of Representatives since last month with provisions like the formation of a Media Council which will be headed by someone recommended by the Ministry of Information and Communication Technology, which can also arbitrarily sack the person. It can also take journalists to court and suspend their media IDs.
“The government, with zero opposition and increasing lenience from the judiciary, is setting up legal pathways to <a href="https://nepalitimes.com/news/no-freedom-after-expression-y4inku06">retaliate against the media</a> for fulfilling its responsibility of check and balance,” says lawyer Om Prakash Aryal. &nbsp;
These provisions seek to weaken the existing Press Council, and give politicians and the bureaucracy almost absolute <a href="https://nepalitimes.com/news/media-matters">power over the press</a>. &nbsp;
Stakeholders have proposed amendments to the Bill during deliberations with the National Assembly’s Legislative Committee, but only a few of the concerns have been addressed.&nbsp;
The Nepali Congress had also introduced 24 amendments to the Bill, but has not backed them after joining the UML-led coalition.
Prime Minister K P Oli had appeared to favour a free press when he assumed office during this tenure last year, but recent press exposes about <a href="https://nepalitimes.com/opinion/higher-corruption-in-high-places">corruption in high places</a> has made him increasingly<a href="https://nepalitimes.com/opinion/nepal-has-press-freedom-but-no-freedom-after-press"> critical of journalists</a> and social media content.&nbsp;
He has publicly attacked the media’s “intolerance and unwillingness to report on the good work done by the government” and urged the press not to publish or broadcast news “that harms the country, causes confusion and weakens public morale”.
Even while the Bill is being debated, the government has repeatedly invoked the Electronic Transaction Act to harass journalists or accuse the media of contempt of court. Bizmandu, Nepalkhabar, Drishti Weekly, and Nepali Times sister publication Himalkhabar have all been charged.&nbsp;
Last week the Supreme Court published the full text of the verdict of the contempt of court against <a href="http://sidhakura.com/">sidhakura.com</a>, which was convicted last year after the outlet published news that included audio files claiming collusion between media operators and Supreme Court justices to dismiss corruption cases, which were determined to be fake following a forensic examination.
In the verdict, the Supreme Court states that while the media is guaranteed the right to print and publish news and audiovisual material, these rights are not absolute but ‘subject to restriction’, per constitutional provision, which is under Article 19 of Nepal’s Constitution.&nbsp;
But the top court’s interpretation and verbiage sets a precedent that allows for state intimidation towards the press for any content that it deems must be restricted, and subject media institutions to unjustified judicial penalties.&nbsp;
Despite its history of defending media freedom, the Press Council has become an instrument of government and corporate entities, and is so politicised that it has not gone beyond platitudes.&nbsp;
The Press Council has blacklisted 29 media outlets, instructed registered online portals <a href="http://pahilopost.com/">pahilopost.com</a> and News of Nepal, as well as unregistered portals to remove content, and shadow-banned other web portals.
Violations of the Press Council’s code of conduct were previously classified as disobedience. Now, the Council has gone as far as to have the Cyber Bureau go after the media.
The Press Council has written to the Bureau to take action against 43 YouTube channels, seven of them for content related to Prime Minister K P Oli. Diyopost was blacklisted for reporting on the Press Council and its former chair Balkrishna Basnet.
While the Press Council has been monitoring journalists, the proposed Media Council attempts to control media companies themselves. This is a double-barrel targetting of journalism.
Nepal is still considered one of the <a href="https://nepalitimes.com/news/global-press-freedom-index-falls-to-critical-low">few remaining open societies in Asia</a>, but recent government moves threaten our hard won freedom. Although better than other countries in the region, Nepal still slipped from 74th place in 2024 to 90th place this year on the World Press Freedom Index.&nbsp;
The US State Department’s 2024 Country Reports on Human Rights Practices briefly outlined <a href="https://nepalitimes.com/banner/gagging-the-press-in-installments">Nepal’s press freedom scenario</a>, stating that the government generally respected the right to freedom of expression, including for members of the press and other media, but added that “the government did not make sufficient efforts to preserve the safety and independence of media”
The report is ironic coming from an administration that has defunded public broadcasting institutions, barred selected institutions access to the White House, and continued to be hostile to media and journalists. In April, the Committee to Protect Journalists, following Trump’s 100th day in office, released a report concluding that press freedom was ‘no longer a given in the United States’.&nbsp;
As it stands, Prime Minister Oli seems to be taking tips from Indian Prime Minister Modi on suppressing freedom of expression. The government is not just muzzling the press, but also constricting the right to peaceful assembly, dissent and debate. The end-goal seems to be to gag the press ahead of the 2027 elections.&nbsp;
Read also: <a href="https://nepalitimes.com/news/no-comment">No comment.</a>, Shristi Karki

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Command and control

People who were 25 in 2000 when Nepali Times was launched are now 50.
Nepal has gone from monarchy to republic, from war to peace, but a lot has remained the same — same politicians in the same politics.
Our 25th anniversary Rewind Supplement (page A-L) in this edition shows that the more things change in this country, the more they remain the same. Nepal languishes and muddles along despite its enormous human capital and natural resources.
Nepali Times content has adapted to new English reading habits: it is less text-heavy, more visual, with better graphics. But issue #1271 does not look much different from #1: the same masthead and design, the same comprehensive coverage, and high quality printing and production values have been maintained for 25 years.
An entire generation has grown older reading this paper, joined now by a new cohort of younger readers. They are assured of consistently high quality journalism on Fridays and online to explain, interpret and analyse what is happening and what to expect. It is content with context.
<div class="embed-block"><iframe width="750" height="450" src="https://www.youtube.com/embed/7QCo5X_fTyA?si=k4G-OlT_loIG1exG" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div>
Journalism is history in a hurry, and this is even more true in the age of social media, the great amplifier. Marshall McLuhan's 'the medium is the message' has never been truer.&nbsp;
Social media is an important tool for dissemination, significantly increasing access to information for everyone. But it is also a breeding ground for disinformation, online bullying, and hate speech.
In countries around the world, populist leaders have weaponised social media to silence critics to the point where the truth is drowned out by lies, disempowering people and paralysing democracy. We are better informed than ever before, but this has not resulted in knowledge and wisdom, &nbsp;tolerance and understanding.&nbsp;
In the midst of all this, there is growing public distrust of the media itself as it is slandered on the social web, pressured by political and corporate interests. You would expect this in authoritarian states, but it is now happening in democracies with elected rulers.
When journalists should be the vanguard to protect freedom, the media industry itself is in crisis with falling revenue and distraction from devices. The independence of a financially fragile media is being further compromised, its public service mandate undermined.
There is no choice but for newsrooms to reinvent ourselves: experiment with new revenue models, reorient content to engage and involve the new generation. This does not mean leaving it up to the algorithm to give them only what they like and agree with, but equip citizens with the information they need to make informed choices.
We journalists are creatures of habit. We like our facts, but we like our routine more. Journalists, mainstream or otherwise, need to be constantly updating themselves, not only on matters of the state but adapt to the new tools and technologies. We have to be on the platforms where our readers are, and learn to use the same tools that they are using.&nbsp;
Instead of fearing for our jobs because of AI, we have to learn to harness its ability to do repetitive or time-saving newsroom chores. AI is not and should not be about content generation, but finding ways to reach our target audience.
This frees up time for journalists to do journalism: investigate, hold power to account, call out malpractice and wrongdoing, while commending good work. This will help us maintain credibility and trust, our most valuable assets. Fact-checking should not be a fad, it is part and parcel of journalism.
For us at Nepali Times, this 25th anniversary is a milestone and a time to plan for the decades ahead. It is time to look back at the last 25 years, and to look ahead at where Nepal could be (or should be) in the next 25.&nbsp;
As we report on page 1 and 4-5, the prognosis for 2050 is not very good unless governance, accountability and transparency are improved. There is no silver bullet for this, it will come from the political will of a new generation of young leaders with the vision to overhaul the way this country is ruled. And that will depend most importantly on electoral reform — informed citizens electing representatives who show integrity and vision.
It has been a turbulent journey in Nepal for the last 25 years, and Nepali Times has tried to chronicle the highs and lows with honesty and fairness.&nbsp;
As the current Editor, I would like to thank all my predecessors and current colleagues for bringing us to this point.
Sonia Awale

Moving with the times

<img width="1328" height="348" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4edc9c7e80680e04fcdajpeg.jpg" alt=""/>After a flurry of accusations by Nepali women of sexual harassment by co-workers, bosses, teachers, family members or strangers in buses, <a href="https://www.nepalitimes.com/opinion/theytoo/" target="_blank" rel="noopener">the #Metoo movement</a> has largely dropped out of the headlines. Very few of the accused have faced trial, detention, or even lost their jobs.And it is perhaps because of this impunity and sense of entitlement in conservative Nepal that women are now stepping up with deeply personal testimonies of their own abuse. They are using social media platforms, and the weekend section of newspapers to keep the issue alive. These narratives are inspiring more women to come out and tell stories they have never told anyone. “I was harassed since the time I did not know the difference between good touch and bad touch, but I could not do anything about it even though I am not shy. I just could not bring myself to slap a harasser in a public vehicle. Then I thought, even if I am not be able to hit back, I can write about it,” said Durga Karki, who wrote a courageous account in Annapurna Post titled <a href="http://annapurnapost.com/news/125048" target="_blank" rel="noopener">#Notme.</a>Even though only a few brave women came out during the #Metoo campaign to tell their stories, Karki says nearly all Nepali women have been harassed at some point.Read also: <a href="https://www.nepalitimes.com/opinion/betterforbalance/" target="_blank" rel="noopener">#BalanceforBetter</a>, Namrata Sharma <a href="https://www.nepalitimes.com/here-now/shivanis-kathmandu/" target="_blank" rel="noopener">Shivani Singh Thar</a>u, a well-known media personality, recently shared a write-up in Kantipur titled <a href="https://www.kantipurdaily.com/koseli/2019/06/15/156058063972641905.html?fbclid=IwAR1p4QtxNzhfLUAwRfWipeL0-UWxWylPBplxIIhmQ1AJaHVY4xerR5Cu9GY" target="_blank" rel="noopener">34 inch ‘D’</a> which recounted incidents of harassment she has faced from a male teacher, men in her worksplace, and others. “I got many messages from women saying they had faced such situations as well, they said they  too needed to speak out publicly,” says Tharu. “Among those reacting were men, some of whom have daughters and were emotionally touched. They started imagining what if it was their own daughter?”These recent writings by women in the Nepali press have also spread awareness among men who may have intentionally or unintentionally made women feel uncomfortable with their behaviour. <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4ede9c7e80680e04fcdbjpeg.jpg" alt=""><figcaption> </figcaption></figure>It is not just women who have been writing confessional pieces. Author Ramesh Sayan recently published an article <a style="letter-spacing: 0.15px; background-color: #ffffff;" href="http://annapurnapost.com/news/126522?fbclid=IwAR1_cQXR7AgvLudv5CsxWJ5hyt3JLK8DCLjEVvyBc7YKercCdSAnJT4fUes" target="_blank" rel="noopener">Keta Haru Ko Kuntha </a>(Frustration of Boys) which talked about how boys are brought up by their families and the kind of values they learn from society. Sayan wrote about how topics related to sex are neither taught by parents nor teachers, but by equally under-informed peers. “The main issue is how men were schooled. As a man, I experience the same psychology and my company since childhood has only been male. I wrote the article to show how the social structure is for them”, says Sayan.  <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4ee19c7e80680e04fcdcjpeg.jpg" alt=""><figcaption> </figcaption></figure>One of the most talked about recent write-ups is by Kunta Sharma because it was about her former husband, Megh Raj Sharma who is better known as the singer ‘Manjul’. The two are literary personalities, but Kunta Sharma writes about how despite being educated and supposedly independent, she suffered physical and mental exploitation from her husband.“I was educated, yet I was like a doll inside a toy house and served as a sex slave,” Sharma, now 74, confided.Sharma and her son filed a defamation case in the Lalitpur District Court against <a href="http://archive.nepalitimes.com/news.php?id=3643#.XScSr-szbIU">Manjul</a>, but Sharma was not happy with the court’s decision. When a DNA test proved that Manjul was indeed the father of their youngest son, the court fined him a mere Rs500. “Our society is infected with patriarchy. Women have to muster the courage to go public, and must have the endurance to fight till the end, whether or not we get justice,” Sharma says.One reason the women say they are writing about their past now is because very few of the accused men faced any action. “The #Metoo movement fizzled out in Nepal because the men got away, that was because women did not want to name names,” says Durga Karki.Tribhuvan University recently filed a sexual harassment FIR against economic teacher Jagadish Murti Koirala, but he is absconding. Bimal Acharya, who edits the weekend section of Annapurna Post and published both Kunta Sharma and Durga Karki’s accounts, says: “I consciously publish more stories by women, and encourage new women writers and provide them a forum.” Read also: <a href="https://archive.nepalitimes.com/article/nation/sexual-harassment-in-Nepal,3389" target="_blank" rel="noopener">#IWalkFreely</a>, Asmita GauchanWomen are now coming out not just on mainstream press, but also on social media to share  stories and encouraging others to do the same. @CatcallsofKTM on Instagram gives space for women to share testimonies, and was opened by a 16-year-old who says she was frequently harassed. She prefers anonymity for now, but felt Nepali women needed the platform.“It is a good followup to the #Metoo that women are coming out to share their stories, one writer encourages others to write,” says <a href="https://www.nepalitimes.com/banner/novelist-returns-to-non-fiction/" target="_blank" rel="noopener">Narayan Wagle</a>, the editor of Kantipur.

Nepali women take to media to expose abuse

<figure><img width="1400" height="1031" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/636904bc9c7e80680e037d3djpeg.jpg" alt=""/><figcaption>UNDERPASS: It looks like you forgot that there is now a new law that forbids disclosure of the private information of public officials. Vatsyayan in Kantipur, 25 August</figcaption></figure>It has only been two weeks since Nepal’s new Penal Code criminalised photography (Section 295), slapped heavy fines and jail terms for recording conversations (Section 293), and announced strict punishment for sending, receiving or using online data (Section 298). Another privacy-related bill in Parliament will prohibit people from publishing personal information of public officials. But it has already had a <a href="https://www.nepalitimes.com/banner/suppressed/" target="_blank" rel="noopener">chilling effect across the Nepali media</a>.A person who ridiculed the prime minister on Facebook was tracked down and arrested for photo-manipulating the prime minister's photo, which violates Section 295 of the Code. Editors of Nagarik, Annapurna Post and Kantipur were summoned to the Press Council for interrogation.Photojournalist Usha Titikshu was taking a photo of a damaged CCTV camera at an airport recently, when she was stopped. “Don’t you know the new rules about not taking photos?” she was warned.If enacted earlier, the new laws would have forced editors to spike their recent investigative reports on the Chief Justice’s doctored certificates, photos showing collusion between top politicians and medical college owners, and stories of corruption in high places.The Federation of Nepalese Journalists last week issued its Godavari Declaration demanding that the provisions be immediately rescinded. The International Federation of Journalists (IFJ), The Committee to Protect Journalists (CPJ), Reporters without Borders (RSF) and others <a href="https://www.nepalitimes.com/latest/amend-criminal-code-rsf/" target="_blank" rel="noopener">all condemned the move</a>, demanding that Nepal adhere to the international standards and principles of freedom of expression.Although the constitution guarantees press freedom as an inviolable right, the laws try to enforce constitutional provisions protecting a citizen’s right to privacy more strictly, even extending it to public figures.Read also: <a href="https://www.nepalitimes.com/banner/strongman-rule/" target="_blank" rel="noopener">Strongman rule</a>, Om Astha RaiPress adviser to the prime minister and former editor Kundan Aryal admits that a free press is important, but says the Nepali media has failed to self-regulate."Journalists do not rein themselves in, they feel free to make derogatory comments, especially about women. It is necessary to regulate the press,” he told Nepali Times. Such talk has already had a dampening effect, with editors and reporters now more wary of publishing information in the public interest. The fear is that the laws are so broadly defined and open to interpretation, anyone can be hauled over for anything.The crackdowns started coming thick and fast after the Nepal Communist Party government was elected to power in January: it consolidated the surveillance arms of the state in the PMO, proposed restrictions on advocacy through the National Integrity Policy, and banned popular areas for protest. Photographer Chandra Ale of Onlinekhabar recently faced questions when he was at Kalimati vegetable market where traders had locked up government inspectors. “A person asked me if I had permission to take photos. He followed me, and forced me to delete my pictures,” Ale relates.Photojournalist Usha Titikshu thinks there is a systematic plan to gag the media. “Threats to journalists are more common across South Asia, and we have not connected the dots to see that the same is happening in Nepal,” says Titikshu, citing the rape and deaths of journalists in India and <a href="https://www.nepalitimes.com/banner/the-death-of-democracy/" target="_blank" rel="noopener">the arrest of noted Bangladeshi photographer Shahidul Alam</a> who is being mistreated in jail. “We see our own government moving towards similar intolerance in Nepal.”Ujjwal Acharya, South Asia coordinator of IFJ and digital media watcher says: “Today one thinks twice before posting anything on social media. By the looks of it, the government intends to curtail all kinds of expression, especially investigative journalism.”Says Nagarik editor Gunaraj Luintel who answered an unprecedented summon from the Press Council: “It was overstepping its mandate, even asking me to explain a mistake in print to the parties involved. The council is only supposed to promote ethical journalism, but it has become an arm of the government. The aim is to increase censorship in a planned way.”Narayan Wagle, editor of Kantipur, was also summoned by the Press Council for the first time in his 30-year career, and says the it has outlived its usefulness.“The practice in democratic countries is that the government does not monitor the press. The press monitors itself through a code of ethics. But in Nepal, a new law about the Press Council is in the offing, which proves the government wants to further tighten the noose around the press.”Bikas Karki, president of Photo Journalists’ Club, agrees that the government’s real intention is control: “The Constitution has become like the elephant’s tusks, it is there just for show. The laws are the real teeth inside, which bite.”Nepal has gone through censorship before. The Panchayat system banned political parties, and the royal palace strictly controlled the press. In 2005, King Gyanendra tried to take the country back to those dark days. Some say the new Code is even worse than the Panchayat.“There were threats then, but they were verbal or even unspoken,” recalls photojournalist Gopal Chitrakar, who started out at Gorkhapatra during the Pancahayat. “I don’t remember such draconian measures. These new rules are in writing, they are backed by the law. That gives them legitimacy which is more dangerous.” Kundan Aryal reassured us that the Code and laws can always be amended. But this does not convince journalists who say the laws that restrict media freedom are inherently anti-democratic, unconstitutional and remove its check-and-balance function. Laws that are broadly defined are even more dangerous, and can be a path to authoritarianism.Read also: <a href="http://archive.nepalitimes.com/article/nation/varying-press-freedom-in-burma,1261" target="_blank" rel="noopener">Too little, or too much freedom</a>, Kunda Dixit <h4>The right to say the emperor is naked</h4> Satire flourishes best and is most prolific when there are controls on free speech, and Haribansa Acharya should know. He says he performed his most fulfilling and creative skits during the Panchayat.“Saying ‘17 Sal’ out loud was banned, since it was the year of King Mahendra’s coup. So we got away by saying ‘the year between 16 and 18’,” remembers Acharya. “We also called Prime Minister Surya Bahadur Thapa ‘Gham’ instead of Surya. We played cat and mouse with the censors, and it was more fun and creative. Today’s satire seems to lack that art.”Satire, in fact, seems less necessary when there is full freedom, but it is a lifeline during restrictive times. Even during the absolutist Rana and Shah reigns, the royals knew citizens needed to let off a little steam. So, they allowed one day in a year on Gai Jatra (on 27 August this year)when people had freedom to say anything. <figure><img width="1200" height="841" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/636904bf9c7e80680e037d3ejpeg.jpg" alt=""><figcaption> </figcaption></figure>Culture expert Tejeswor Babu Gongah remembers Gai Jatra revelers burning an effigy of the Panchayat, an act that would have people locked up on any other day of the year."Humour is one space where you can raise issues that you cannot elsewhere, therein lies its power to question authority,” he adds.Some have noted that this year’s Gai Jatra seemed subdued, with fewer shows. On social media, there were comments that satirists had already started self-censoring because of the new Criminal Code.Satirist Manoj Gajurel, who has made a career out of lampooning kings, prime ministers and guerrilla commanders, says: “Humour has a social responsibility to carry the people’s message to authority when it refuses to listen to direct communication.”However, an elected government now wants to take away that right of Nepalis to poke fun at power. Section 306 of the Code specifically prohibits ‘satire’ and categorises it under libel, and Section 295 prohibits caricatures.“I feel a great sense of dread,” admits cartoonist Durga Baral, who went underground during the Panchayat but continued to produce cartoons under the pen-name Batsyayan, despite threats."Freedom of expression is our basic right, and if we are not free to speak out, it all gets bottled up inside.”Nepali cartoonists are pushing back. Last week, Rabin Sayami drew a savage cartoon that tore the government to shreds over its callousness in not investigating the Kanchanpur rape case, and killing a protester. It depicted a smiling Pushpa Kamal Dahal and a smug Prime Minister Oli with a smoking gun in his hand (above). The rapist holds a bloody knife, and has his back turned. Two photos of the rape victim and a dead protester hang on the wall.Sayami was warned by friends to be careful, and that he might be sent to jail. He says the cartoon was a test: “To see if we are still a democracy.”Read Also: <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saparu-the-festival-of-death-and-rebirt,2543" target="_blank" rel="noopener">Saparu</a>, Sonia Awale<a href="http://archive.nepalitimes.com/news.php?id=11225#.W4fAI84zbIU" target="_blank" rel="noopener">Festival of death and satire</a>, Desmond DoigCode wordsWhile Nepal's journalistic community is up in the arms about the latest Criminal Code, lawyer Madhav Basnet says it is not as worrying as perceived, for the following reasons: <ul><li>The 1990 Constitution was the first one to clearly mention the right to privacy.</li><li>Nepal has a long history of laws against slander and libel, even in Jang Bahadur's Muluki Ain of 1853.</li><li>The Criminal Code does not specifically mention any profession like writers, journalists or photojournalists.</li><li>The conduct of journalists is covered by other laws related to the media, which remain unchanged. The Criminal Code mentions that it will not supersede laws relating to specific professions.</li><li>With social media, it is not just journalists and photographers who take photos, collect and disseminate information, but everyone. The Code is only prescribing limits for them.</li><li>The law, however, does apply to journalists if they are not transmitting through the mass media.</li><li>The Criminal Code is not the guarantor of freedom of expression, the Constitution is. That freedom is not without its limits, and the limits are also mentioned in the Constitution. However, nothing can take away that freedom. And if any law seems to infringe upon it, then there are Constitutional remedies.</li></ul>Read also: <a href="https://www.nepalitimes.com/opinion/nepal-has-press-freedom-but-no-freedom-after-press/" target="_blank" rel="noopener">Nepal has press freedom, but no freedom after press</a>, Shashank Shrestha

Gagging the press in installments

<img width="1140" height="457" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/636903e39c7e80680e037cedjpeg.jpg" alt=""/>Nepali journalists could face up to three years in prison if they publish information that is deemed to be “confidential” under the <a href="https://www.nepalitimes.com/here-now/strongman-rule/" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.nepalitimes.com/here-now/strongman-rule/&amp;source=gmail&amp;ust=1534600447559000&amp;usg=AFQjCNGWxMmKhx8j3vF7t9ukxILUUvlF1w">new criminal code</a>. Several of its articles relating to the protection of privacy pose a <a href="http://kathmandupost.ekantipur.com/news/2018-08-16/privacy-and-the-press.html" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://kathmandupost.ekantipur.com/news/2018-08-16/privacy-and-the-press.html&amp;source=gmail&amp;ust=1534600447559000&amp;usg=AFQjCNH08bpzmOGAQCAlcAwBIROeyRYGhQ">serious threat to journalistic practices</a>.Sections 293, 294 and 295 criminalise publishing private information, recording conversations or taking pictures without permission. Under article 306.2, showing “disrespect” towards someone either directly or through satire is also punishable by up to three years in prison.“We call on the Nepal authorities to immediately rewrite these provisions because, in their current form, they would seem to constitute an unacceptable censorship tool,” said Daniel Bastard, the head of RSF’s Asia-Pacific desk.Read also: <a href="https://www.nepalitimes.com/banner/strongman-rule/" target="_blank" rel="noopener">Strongman rule</a>, Om Astha Rai“They must take account of the need to be able to gather news and information in the public interest. By leaving too much to the judge’s discretion, these articles could be used to criminalize all investigative journalism and criticism of public figures. If they are not amended quickly, Nepal is liable to fall sharply in the World Press Freedom Index.”The preamble of <a href="http://www.wipo.int/edocs/lexdocs/laws/en/np/np029en.pdf" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://www.wipo.int/edocs/lexdocs/laws/en/np/np029en.pdf&amp;source=gmail&amp;ust=1534600447559000&amp;usg=AFQjCNEiwge96a0fg7c-RYTj6SWBQ-2MUQ">Nepal’s 2015 constitution</a> proclaims full freedom of the press, while article 19 prohibits censorship. Journalists are nonetheless often subjected to pressure from various authorities, as when the head of the Supreme Court <a href="https://rsf.org/en/news/nepals-chief-justice-tries-gag-newspaper" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://rsf.org/en/news/nepals-chief-justice-tries-gag-newspaper&amp;source=gmail&amp;ust=1534600447559000&amp;usg=AFQjCNF-zLo0-vt7q6RENCBxY_pqBb_wmA">tried to prevent the publication of any reports criticizing him</a>. He was later removed.Nepal is ranked 106th out of 180 countries in <a href="https://rsf.org/en/ranking" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://rsf.org/en/ranking&amp;source=gmail&amp;ust=1534600447559000&amp;usg=AFQjCNEyHj8Ii7uCpCaW3mMuTZmZwDsGfw">RSF's 2018 World Press Freedom Index</a>, and could fall further if the current Code is implemented.

Amend Criminal Code: RSF

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9e29c7e80680e02f2d8jpeg.jpg" alt="" width="4032" height="3024"/><figcaption>Photo: Madhu Acharya</figcaption></figure>Some 4,145 respondents in 38 sample districts of all seven provinces were surveyed in January and February this year to measure their ownership of communication devices, mass media consumption patterns, and their views on the press itself.The exercise was undertaken by Sharecast Initiative Nepal, and the 2018 survey was the third in a series supported by multiple Nepali organisations. The study also explores most popular radio and tv programs and stations, and current trends in social media engagement and Internet usage.<h2>Sample distribution by districts</h2><iframe style="border: none;" title="02_Sample Districts and Sample Size" src="https://e.infogram.com/bebf9db3-8122-4a84-897a-0eed1961881f?src=embed" width="1024" height="769" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>Province 4 led the way with the highest mobile phone ownership (99%) with 64% of them being smartphones. The province, of which Pokhara is the capital, also had 38% of its people using the Internet daily.Mobile phones are by far the most common communication device in Nepal today with an overwhelming majority of 96% of respondents owning one at the household level, and individually they are owned by 90%. Of these, slightly more than half were smartphones, and only 18% of respondents said they used laptops, desktops or tablets at home.<iframe style="border: none;" title="Ownership of Media at Provincial level" src="https://e.infogram.com/25c1f655-576f-4465-b6f1-854a08f517dd?src=embed" width="1509" height="844" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>Among the 35% who have access to regular Internet, 98% respondents said they use mobile phone for Net access. Only 5.2% of respondents said they used laptops/tablets for the Internet whereas only 0.8% respondents used personal computers.Nearly three-fourths of those polled used mobile data to access Internet while only 19% said they had access to broadband Internet or WiFi at home.Easy access to mobile data, smart phone penetration along with competitive rate from telecom companies are attracting mobile users to access the Internet on their phones. Broadband Wi-Fi is still limited in urban affluent households.<iframe style="border: none;" title="Access to Media" src="https://e.infogram.com/31758454-5be6-4a5d-a59b-b3c743e087af?src=embed" width="842" height="670 " frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>Among Internet users, Facebook was the highest (81%) with Messenger, IMO, YouTube, Viber and Whatsapp trailing close behind. In the 16-24 age group, Facebook use was 86%. An estimated 8 million Nepalis are said to be on Facebook, and is popular with both literate as well as illiterate people.<iframe style="border: none;" title="Use of Internet" src="https://e.infogram.com/13a6565e-1bd4-412c-aef6-aad4dc3e29e2?src=embed" width="960" height="740" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>IMO is widely used to connect with relatives in Middle East where migrants are working in the highest numbers. Even though it has risky privacy issues, IMO works well even with low bandwidth. Media digital aggregator HamroPatro was the only Nepali application mentioned as a favourite by 1.3% Internet users.In the electronic media, tv has overtaken radio with 56% of households now owning tv sets with only 29% having traditional radio receivers at home.<iframe style="border: none;" title="Main source of News" src="https://e.infogram.com/d5e63668-3d55-4d91-a215-db60e4a5d34f?src=embed" width="940" height="788" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>Access to electricity, DTH and cable coupled with remittance savings, (one in three respondents had someone from the household working abroad) being used to buy tv monitors. Interestingly, 56% of respondents said they tuned in to FM radio on their phones.Press readership trails behind radio with only 21% of respondents saying they had been able to get hold of a hardcopy in the last six months. Among those readers, only 6% said they read a paper daily, relying on radio and tv for local, national and international news.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9e69c7e80680e02f2d9jpeg.jpg" alt="" width="1665" height="1082">Among the respondents, 35% said they had regular access to the Internet, with 24% of them using it daily. This finding contradicts the recent Nepal Telecom Authority data which is primarily based on the mobile simcard distribution and stated that 63% of Nepal’s population had Internet access.One of the most interesting findings of this survey was in answers to the question about which source of news were most reliable. About a third said they trusted tv and radio, however only 3% trusted newspapers and less than 2% found information on the Internet to be reliable. Many found neighbours to be much more trustworthy than the information available online.<iframe style="border: none;" title="Reliable Source of News" src="https://e.infogram.com/af89e92d-c60d-45d5-9b3b-e57935e1ff01?src=embed" width="960" height="720" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>Unlike India and other countries in the region, the big chunk of people watching Nepali tv channels do so for news (85%) followed by entertainment (43%). When asked why, a majority said they did not find Nepali entertainment programs particularly appropriate.An overwhelming 86% of tv viewers watch programs in the evenings, and more women watch television than men in the evenings. The men watch more tv in the mornings. This is true across variables such as age, province, ecological regions, caste, education and occupation.<iframe style="border: none;" title="TV Source" src="https://e.infogram.com/da1c38bf-2c7b-4c8e-ba46-e93ae54d8394?src=embed" width="960" height="720" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>Of tv users 35% of households have local cable without setup box, and 33% are hooked up to Nepal’s only direct to home (DTH) company. The remaining 32% use local setup boxes, illegal Indian DTH as well as digital tv providers. This scenario is expected to change with the government’s new policy for cable companies to digitise tv sources.Survey lead and analysis:Madhu Acharya,Bhumiraj ChapagainStatistics and methodology:Balkrishna Khadka<a href="http://www.sharecast.org.np/" target="_blank" rel="noopener">www.sharecast.org.np</a><h1>How the survey was done</h1><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9e99c7e80680e02f2dajpeg.jpg" alt="" width="4032" height="3024">Interviews were conducted with 4,145 respondents in 38 sample districts over seven provinces in January-February 2018.There is an error margin of 1.52% at 95%. The 77 districts were sample frame stratified by Provinces. The primary sampling unit was the district, with 198 sample wards selected from the 38 districts. Sample households (21) were selected using random walk methods.

Nepal's changing media landscape

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.

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