<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209f39c7e80680e0b5572jpeg.jpg" alt="" width="507" height="600"/><figcaption>Author Buddhisagar. Photo: BUDDHISAGAR/FACEBOOK</figcaption></figure>Buddhisagar’s novel Karnali Blues starts with a father, who says after seeing his newborn son for the first time, “He has a mole on the sole of his foot, so he will have to walk a lot but he won’t go off anywhere and leave us.”His mother then asks the baby, “Will you go off and leave us when you’re big?”A statement from one parent, a question from the other.In a Thamel restaurant on a sunny winter afternoon, Buddhisagar walks in wearing a brick-orange jumper and black pants, looking as if he just returned from a track meet-and-greet. He apologises for being late. “I walk everywhere,” he offers as an explanation.He does not look like any of the pictures on the Internet, those that make him out to be larger-than-life celebrated Nepali author. Maybe it is because he is not expecting to be photographed.Read more: <a href="https://www.nepalitimes.com/review/former-gurkha-soldier-turns-author/">Former Gurkha soldier turns authors</a>, Chun Bahadur GurungThis is the real Buddhisagar, in his most natural state. Perhaps this is how he looks writing in his own company, while sipping tea from a local vendor and building stories out of childhood nostalgia.Like Brisha Bahadur in Karnali Blues, Buddhisagar was also born in Matera, and brought up in Katasé and Kalikot. Like the main character of his novel, he was not academically gifted. But unlike his fictional counterpart, he was rather shy, Buddhisagar  confesses. So the prolific author most likely did not go around looking for mischief or drawing moustaches on pictures he found around the house.Many call Karnali Blues an autobiographical fiction. “Some parts of the beginning of the novel are real,” the author admits.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209f59c7e80680e0b5573jpeg.jpg" alt="" width="725" height="960"><figcaption> </figcaption></figure>The inspiration for the novel came in a hospital, a place of both birth and death. “My father was sick and like in the novel, he was in Kohalpur. He died later, from brain hemorrhage as well,” he says.But Buddhisagar does not think he is our protagonist. He explains, “A writer is never one character. They are inside the minds of young and old, of men and women - they are everywhere in fragments. There are some parts of me in Brisha Bahadur. There are some parts of my mother and father in him as well. He is not all me.”After a pause, he adds, “Just look at the poems he writes. If he was me, he perhaps could have written them better.”There is also the juxtaposition in the book between the two Harsha Bahadurs — one is the breadwinner of the family and the other lies paralysed in a hospital bed.Read also: <a href="https://www.nepalitimes.com/banner/nepali-literatures-thulnani-toya-gurung/">Toya Gurung: Nepali literature’s Thulnani</a>, Muna GurungThen, there are the two Brisha Bahadur: the child who looks up to his father, and the youth who still does so even as the father lies on his deathbed.Father and son oscillate between having to give and receive care to one another. There is also the pacing of the past and the present in the chapters of the novel. The present moves in a numbingly slow pace as the human mind goes through moments rejecting death, and yet accepting the hopelessness enveloping it whereas the past rushes up to the narrator like a deadly current in a moody river that catches up to those who do not want to be caught.“What matters the most to me is <a href="https://www.nepalitimes.com/latest/writing-about-nepal-from-afar/">authenticity</a>,” Buddhisagar says,  sipping on a single-shot Americano. “Regardless of whether a story is autobiographical or not, the readers must think that the events happening in the story can actually happen in reality.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209f89c7e80680e0b5574jpeg.jpg" alt="" width="1222" height="900">Karnali Blues tells us about <a href="https://www.nepalitimes.com/banner/taking-nepali-literature-to-the-world/">people and places that age</a> through immaculately detailed visuals of the great river’s tributaries weaving themselves into the story.Villages and towns also have characters and stories to tell. A tea shop by the river turns into a small market. The river becomes a <a href="https://www.nepalitimes.com/here-now/how-the-bagmati-civilisation-is-becoming-uncivilised/">dumping site to accommodate modernisation</a>. The cattle get sick. A new bridge opens up a nearby town, and its population migrates, hoping for a better future.The village dries up, but the rivers stay polluted. There is death and abandonment, but even if one life ends, the other has to move forward. The title is apt, there is no other place to feel blue and desolate than in the Karnali.“The back-and-forth style of storytelling in Karnali Blues came from those hospital nights with my father,” Buddhisagar says, this time holding a freshly-lit cigarette between his fingers. “You start by reading about an unknown person, sick and on his deathbed,  and slowly, you walk along the story with him. Eventually, the readers get to know him and so when the end comes, it creates an emotional response.”Read also: <a href="https://www.nepalitimes.com/banner/taking-nepali-literature-to-the-world/">Taking Nepali literature to the world</a>, Ashish DhakalBecause we spend 400 pages with Harsha Bahadur, we know that he is a constantly caring patriarch whose love for blue waistcoats is immeasurable. We also know that Brisha Bahadur’s nameless mother is constantly forgiving. Despite being a troublemaker, we still adore Brisha Bahadur’s predilection for an expensive bicycle, or a leather jacket. His love for tea makes him the most relatable Nepali on earth. And thus we come to care for all of them.“Since I spent many years writing the novel, it opened a whole new world for me,” Buddhisagar says, blowing out blue smoke through his nostrils.It has been 12 years since he came out, and readers have come to love the world he created as well. It has now found new visitors with <a href="https://www.nepalitimes.com/banner/taking-nepali-literature-to-the-world/">Michael Hutt’s English translation</a> (see above).<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209fb9c7e80680e0b5575jpeg.jpg" alt="" width="1080" height="792"><figcaption> </figcaption></figure>Language bridges distance, and so when asked whether he wishes to change the way he had written Karnali Blues, especially now that he has become a father himself, he shakes his head.“I don’t have any regrets about my past work. Whatever I had felt while writing the book has dissipated. If I read it now, I will do it as a reader,” says Buddisagar. “We are fathers of a different era. I don’t feel the need to change the way I have written about fatherhood in this novel.”Perhaps it is not Buddhisagar we should be looking for in our narrator, rather it is us readers that find ourselves in his characters. The way we were as children, the kind of parents we want to become.Maybe Buddhisagar has expertly hidden himself somewhere within lines like these in Hutt’s translation: “Once Father set out, he never looked back. He used to say, ‘If you turn to look back, your attachments will trap you and you won’t be able to go.’”Buddhisagar is working on his third novel. The English translation of Karnali Blues translated Michael Hutt is available in Kathmandu bookshops. Read also: <a href="https://www.nepalitimes.com/here-now/the-story-of-books-in-nepal/">The story of books in Nepal</a>, Ashish Dhakal

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Maya Thakuri: Writing between the lines

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937829c7e80680e03fe3ejpeg.jpg" alt="" width="1400" height="933"/><figcaption>Bikram Rai</figcaption></figure>The struggle with kerosene stoves, the relief when you move up to propane. The steady stream of uninvited guests from remote parts of the country, who live for months as they try to get a foothold in the capital. The graduation from outdoor squatting toilets to indoor commodes.Shradha Ghale’s novel The Wayward Daughter portrays a world familiar to many first generation migrants into Kathmandu, and much of it is autobiographical.“I took a lot of material from the experiences of my near and dear ones, however, none of the characters exist in real life as they do in the book,” she says.Read also: <a href="https://www.nepalitimes.com/wp-admin/post.php?post=18384&amp;action=elementor" target="_blank" rel="noopener">Manisha Koirala’s new life</a>, Rupa Joshi The Wayward Daughter offers aspects of life in a Janjati family that make it unique from most other Nepali writings in English. The Tamule family celebrates Udhauli and Ubhauli, takes offerings of millet liquor, dried fish and a rupee coin for a marriage proposal. Ghale admits she knew her story had to be about a family from an indigenous community, because she herself had read very few such stories.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937859c7e80680e03fe3fjpeg.jpg" alt="" width="200" height="174"><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937869c7e80680e03fe40jpeg.jpg" alt="" width="500" height="640"><figcaption> </figcaption></figure>A smart Tamule child is complimented with “as clever as a Bahun’s son”. Some Tamules adopt Brahmin gods and traditions, bow down to priests, and look down upon other communities. The looking down is mutual because other communities also despise the “chimse bahun.” These nuggets from Ghale’s book are revelations even for Nepalis, and a reminder to readers about just how diverse Nepal is.The greatest strength of Ghale’s debut novel is this no-nonsense, lean, almost journalistic prose.But who exactly are the Tamule? Ghale gives an enigmatic smile to reveal that she made up the Tamule: “Creating an entirely new indigenous community gave me the freedom to explore my ideas, free of established stereotypes about particular communities.”The Wayward Daughter succeeds in her deliberate attempt to portray a rich cross-section of Nepali society, showing how caste, class, and gender influence everyday life in Kathmandu. The story is about growing up in a multifarious, almost dystopian world that Nepal has become. Youngsters abandon traditions for modernity, as they prepare to go abroad for higher studies.Read also: <a href="https://www.nepalitimes.com/?p=18456&amp;preview=true" target="_blank" rel="noopener">A hostage situation</a>, Prakriti KandelAt the Rhododendron High School that the protagonist Sumnima attends, students are fined for speaking in Nepali. Some readers will remember ‘boarding’ schools in the 80s, the rise of FM radios and the craze for celebrity RJs that Sumnima adores. She confesses (only to herself) that she eats dal-bhat twice every day, and yet in friends’ auto books she writes that her favourite food is ‘pizza’. Youngsters these days do the same: leave behind rustic roots, pretend they were never there, and head out for sophisticated western horizons.The meandering story does not necessarily have a plot, even though every little sub-plot about the extended Tamule family offers fascinating nuggets of life. Ghale confesses that she did not start out with a clear plot in mind, but accumulated sections she wrote at different times, and had to cut out many parts that did not fit.The stories are a continuation of the bits of fiction Ghale penned in her college days, imagining herself to be in league with great writers. “I loved Gustave Flaubert and Virginia Woolf, I did not just want to write like them, but sound as good as them. Writing this book became an exercise in humility for me, when I realised my own limitations. Every day you wonder where your work is going, if you will ever finish it, and if it will ever be any good,” says Ghale.Hopefully, acclaim for her first novel will motivate Ghale to write a sequel, which many have already advised her to do. The novel ends just when things are getting more interesting, with the country about to plunge into a civil war. Ghale ends it there with a riveting epilogue that leaves you yearning for more.Read also:<a href="https://www.nepalitimes.com/here-now/shared-stories-shattered-dreams/" target="_blank" rel="noopener"> Shared stories, shattered dreams</a>, Sonia Awalehttps://www.youtube.com/watch?v=oqipZqqPFuU&amp;t=4s

Shradha Ghale, the prodigal daughter

Shivani Singh Tharu took nine years to write the thriller Kathmandu Ma Ek Dinhttps://youtu.be/hmpBALWFR_8<a href="https://www.facebook.com/Shivani-Singh-Tharu-162400030500873/?ref=br_rs">Shivani Singh</a> Tharu always knew she was born to be a storyteller. And so it was that through her colourful modelling career, television anchor, <a href="http://archive.nepalitimes.com/news.php?id=17568#.Ws8hly5ubIU">radio</a>, and now as a novelist -- the core essence of telling a story has always been what has driven her.Tharu’s debut novel launched this week, Kathmandu Ma Ek Din, took nine years to write. It is a political thriller and revolves around a character named Ghurna from the plains who battles social injustice in the unstable politics of the post-conflict era after 2006.“Most people think of me as someone from the fashion field, and do not really associate me with literature, but those who have known me personally know that I’ve always been into writing and reading,” says Tharu, while autographing her book on Tuesday at the Russian Cultural Centre. <figure><img width="1500" height="1177" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9f69c7e80680e02f2dfjpeg.jpg" alt=""/><figcaption>Pics: Gopen Rai</figcaption></figure>Since her childhood, Tharu has had a voracious appetite for everything from Tintin to Tinkle, and stories like Amar Chitra Katha to Manohar Kahaniyan. She admits to being constantly drawn to the intriguing, macabre and mysterious world of thrillers and detective dramas.One of the biggest challenges of writing a novel for Tharu was to be able to write the kind of book that would satisfy the reader in herself. Now that it has been published, she is going through what most writers often experience: a sense of emptiness because she misses the process of writing, the fun, the struggle and the exhaustion.Language was another obstacle she had to overcome because Tharu herself admits she has difficulty with writing in Nepali. But she didn’t let this deter her, and overcame the handicap by reading Nepali literature voraciously and doggedly. This is also her advice to aspiring writers: “To write, you have to read.” <img width="640" height="471" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9fa9c7e80680e02f2e0jpeg.jpg" alt="">Asked about her next book, she laughs gently and says that it is a secret. “People have already given me a hard time for taking nine years to write this book,” she says, “I am not making that same mistake again. I will only talk about my second book once it is ready.”Tharu’s passion, energy and enthusiasm for the literary world is evident in her talent and personality. She knows mainstream Nepali men may not take her seriously because of her background, but Tharu deflects the criticism saying she wants to be judged by her words.She adds: “It is fine if some people cannot think of me as a serious writer. I know I am an underdog just now, and that’s ok. I’ve always loved underdogs. I will continue to do what I love and enjoy, which is writing.” <img width="500" height="752" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9fd9c7e80680e02f2e1jpeg.jpg" alt="">Read Also:<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Kathmandu-wont-let-go-of-me-samrat-upadhyay,3649">"Kathmandu won't let go of me"</a>, Nepali Times<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/our-own-lives,3165">Our Own Lives</a>, Raisa Pande

Shivani's Kathmandu

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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