This is the 69th episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. <h2>Mahesh Chowdhury</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250710090736_a0eda4e463f347008c8198f1731e02bc1bbec70d404df85aa60b9289d94dc3d9.jpg" data-media-id="editor_0" data-image-id="20250710090736_a0eda4e463f347008c8198f1731e02bc1bbec70d404df85aa60b9289d94dc3d9" data-rendition-name="original" width="1600" height="900" loading="lazy" alt="Mahesh Chowdhury"> </figure>  I am from Kanchanpur, headed to Gujarat where I work as an electrician. I came home for my vacation.&nbsp; I earn well there, above INR27,000 a month and my supervisor is entirely reliant on me. My father also worked in India back in the day as a driver. I was 15 when I first went to India 12 years ago, and had to do so given my family’s situation.&nbsp; I started at the bottom, but as I learnt work and gained experience, my earnings improved. I do not need to go to any other country like <a href="https://nepalitimes.com/here-now/migrants-returning-from-the-gulf-with-infertility">the Gulf </a>or Malaysia. One of my uncles insisted that I go to Malaysia but I said no. I am doing just fine in India, and I can keep <a href="https://nepalitimes.com/banner/visit-nepal-again">visiting Nepal </a>as I please. I have built a house already with my savings. I do not have any trouble finding work in India as my contractor gets a lot of jobs which he delegates to me.&nbsp; I came home for two weeks to see my mother who is sick and to take her to the hospital.&nbsp; I don’t like the idea of going to third countries beyond India. When my great aunt died, I came for her last rites but her own son could not come home from Malaysia.&nbsp; <h2>Hem Raj Panta</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250710090740_a5576b924822900a451befb7e0bcc2b4d7dc8128b0d4c0162b49d2fd4c97acea.jpg" data-media-id="editor_3" data-image-id="20250710090740_a5576b924822900a451befb7e0bcc2b4d7dc8128b0d4c0162b49d2fd4c97acea" data-rendition-name="original" width="1600" height="900" loading="lazy" alt="Hem Raj Panta"> </figure>  I was born in Baitadi, and after completing Grade 10, tried my hand at <a href="https://nepalitimes.com/here-now/nepal-sets-ambitious-target-for-food-sufficiency">modern agriculture</a>. But this did not do well because I did not have access to markets, cold storage or roads.&nbsp; I moved to India to work in a garment factory. The monthly earning of INR7,000 barely helped cover our household expenses, and we had <a href="https://nepalitimes.com/news/near-debt-experience">outstanding loans</a>. So, I decided to go to Dubai, where I worked in garment and delivery for a monthly salary of Rs45,000.&nbsp; My brother was already working <a href="https://nepalitimes.com/here-now/the-malaysia-nepal-migrant-scam-nexus">in Malaysia</a>. In fact, we met in Kathmandu when he was returning from Malaysia and I was headed to Dubai. Later, I also worked in Malaysia at a company that manufactured vacuum parts. Although the earnings were good, I decided not to renew my contract. My parents were aging, and my son was growing up. I wanted to be around them.&nbsp; I attended the same school which my father went to in Baitadi. It was quite a distance from home and the only option was to rent a room near the school. My father was concerned that he could not prioritise his studies, and neither could he do the same for us.&nbsp; He did not want the same fate for his grandson, so I decided to break the cycle. I moved my son to Dhangadi where he now has access to better education. I drive a rickshaw that I bought with my Malaysia earnings. I earn enough in Nepal now to take care of my <a href="https://nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">household expenses </a>and also enjoy the freedom of working on my own terms. Most of all I like eating at home with my family every day, unlike the food we ate in plastic bags when I was overseas. <h2>Ramesh Bhul</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250710090740_dff1594f36488152183f79696158cca9cc55219d252c14139b307ef9fae554b7.jpg" data-media-id="editor_8" data-image-id="20250710090740_dff1594f36488152183f79696158cca9cc55219d252c14139b307ef9fae554b7" data-rendition-name="original" width="1600" height="900" loading="lazy" alt="Ramesh Bhul"> </figure>  I am going to rejoin my job as a household help in Rajasthan. I clean, cook and it has been five years since I worked there. I came home to Kanchanpur for almost a year to help with farmwork this time. I am going back to Rajasthan with my brother and his entire family who also work in the same house as me. My wife did not accompany me though.&nbsp; I first went to India when I was just 12, and am 23 now. My father passed, so household responsibilities fell on my shoulders at a young age. I would have liked to go to countries like Malaysia, Dubai and Qatar, but I cannot afford it. I have had to borrow money just to go to India. <h2>Lalmati Mahara</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250710090740_3607fd15b5ca081fb39fe7f102d72fb7b66e1b8b24767a9a00093a12874c0315.jpg" data-media-id="editor_9" data-image-id="20250710090740_3607fd15b5ca081fb39fe7f102d72fb7b66e1b8b24767a9a00093a12874c0315" data-rendition-name="original" width="1600" height="900" loading="lazy" alt="Lalmati Mahara"> </figure>  My husband’s attempt to go overseas did not work out because he failed his pre-departure medical tests. We go back and forth between India and Nepal quite frequently.&nbsp; Before the <a href="https://nepalitimes.com/banner/nepal-marks-rice-planting-day">paddy planting season</a>, my husband and I were in Bangalore. I work as a household help and he works at a company. But as Bangalore is too far, we are now going to Delhi. He will work at a cooler company arranged by my brother-in-law and I will again find work as domestic help.&nbsp; My in-laws take care of our children, and we earn INR10-15,000 each. We will again come home during the harvest season. That is what life is like, we time our trips around the agriculture seasons.&nbsp; We have lived in many places across India. In Nepal, we cannot find work. That’s why we go, we come back, we work in the fields, and go back again. We do it for the kids. <h2>Prem Khadka</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250710090740_a4511b185792d04a90f1fd884c5ae3328773c412eb6efa7497bec34c8d2a4966.jpg" data-media-id="editor_11" data-image-id="20250710090740_a4511b185792d04a90f1fd884c5ae3328773c412eb6efa7497bec34c8d2a4966" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Prem Khadka"> </figure>  I am from Dadeldhura. There were no hospitals or roads in my village then. I studied till Grade 10, and I went to Delhi when I was 18. I worked in a canteen as a tea-boy, and slowly worked my way up. I had neither the skills nor the experience for anything beyond.&nbsp; Now I am a cook in Maharashtra, where I earn almost INR30,000 at a five-star hotel. For those with <a href="https://nepalitimes.com/banner/after-quantity-nepals-education-needs-quality">good education</a> and experience, India offers opportunities. Because I had neither, it took a long time to get there.&nbsp; The starting phase in India can be very difficult because we have to learn skills and gain experience, but things get better. You also need good references to move ahead. It was the same with me. I have done it all: washed dishes, cut vegetables, worked in the boiling area and so on.&nbsp; You watch and learn to advance, you step up whenever there is an opportunity to earn the team’s trust and you gradually work your way up. There is no short cut, especially when you do not have references. Now I am happy with where I am at, and am glad I am a reference for many Nepalis who go there seeking opportunities.&nbsp; I come home twice a year and time it around<a href="https://nepalitimes.com/here-now/farm-subsidies-money-down-the-drain"> agriculture seasons </a>so I can help at home. I myself have not tried applying to five stars in Gulf countries but I have seen friends who despite having the practical skills got kicked out during interviews or got cheated by fraudulent recruiters.

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India Bound

This is the 56th edition of Diaspora Diaries, a regular column about migration in Nepali Times. <h2>Heera Tirwa</h2> I was just 13 when I married an India-born Nepali from Achham. &nbsp;An arranged marriage, I first saw my husband only at the wedding ceremony. I moved to India from Achham when I was so young that I associate my childhood with Mumbai instead of Nepal.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250110100124_fcc447c7d7436ff80312e71a4cfcdbaae9610dff932ec2398c57c75eb256fa19.jpg" data-media-id="editor_0" data-image-id="20250110100124_fcc447c7d7436ff80312e71a4cfcdbaae9610dff932ec2398c57c75eb256fa19" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="Heera Tirwa"> </figure>  My father, also a watchman in Maharashtra, did not visit us when my children were born despite living just a 10-hour drive away. I had to accept the fact that my mother who was in Nepal would not visit me, but my father’s absence hurt. I wrote a letter reminding him that his responsibility as a father does not end simply because he married me off. Navigating new responsibilities at such a tender age far away from home, I needed his attention. My father then visited us and lifted my spirits. Years have passed, filled with both happy and sad moments. &nbsp;Access to education, health, jobs and road networks is better here. But the cost of living is high and making ends meet is difficult, especially in single-income households. That is why I also work full time at a company that makes nuts and bolts. We are so invested in our children’s education and future that we overlook all the hurdles in life. In the old days, someone’s departure from the village to Mumbai would draw a crowd, with people asking them to deliver letters and gifts to their loved ones. This flow of people between our villages and Mumbai ensured we were up to date with news including of childbirths, marriages and deaths on either side, despite the absence of phones and internet. I still cannot believe it took me 13 years to make my first trip back to Achham from Mumbai. It was a reunion filled with tears and embraces, especially with my mother, much like my departure years ago. <h2>Chandra Singh</h2> I grew up in Doti. My mother passed away when I was around four years old, so my five siblings and I pretty much raised ourselves. Even at that age, I took care of my younger siblings.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250110100128_a03c86a5cf2d7fd396d331b54114613fdd4350ec89aef8f0d150fb3ccb364369.jpg" data-media-id="editor_1" data-image-id="20250110100128_a03c86a5cf2d7fd396d331b54114613fdd4350ec89aef8f0d150fb3ccb364369" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="Chandra Singh "> </figure>  I do not know exactly when I came to India from Doti, it must have been over 40 years ago. But I vividly remember weeping non-stop till I reached Dhangadi en route to Mumbai with my new family. The next time I visited Doti was years later, accompanied by my three children. My father-in-law worked as a watchman in Mumbai. My husband, who is no more, was born here and also worked as a watchman. &nbsp;Many Nepalis like my father-in-law who had permanent jobs moved their families to India. Housework including taking care of my grandchildren and elderly mother-in-law keeps me busy, but I continue to work as a part-time household help for an Indian family. I mop and wash dishes which provides me some spare cash to supplement my sons’ earnings. Back in our village in Nepal, one can rely on agriculture and livestock to sustain ourselves. There are social networks to lean on during difficult times. One can borrow or even beg. You won’t go hungry. Someone or the other will check on you. Here in the city, all you have is your hard work to rely on. You can eat only if you work hard. <h2>Kamala Tirwa</h2> I was a bright student growing up in Mahendranagar. I had completed Grade 9, and also taught adult literacy classes to women in my village, so they knew how to sign or to read letters.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250110100128_f98f1d4217aa5bc1e5d727d84a4a457ef9b8314dd0f4db497b8b78d07d03ae3e.jpg" data-media-id="editor_2" data-image-id="20250110100128_f98f1d4217aa5bc1e5d727d84a4a457ef9b8314dd0f4db497b8b78d07d03ae3e" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="Tirwa"> </figure>  I also spread awareness against HIV stigmatisation.These engagements exposed me to a world beyond my four walls, expanding my knowledge as I interacted with diverse people, underwent training from organisations, and taught classes. It was also fulfilling as women showed up for the classes after finishing their household chores and participated intently. To complete SLC was a big deal in our village, especially for a girl, and I was so close. But my parents decided to marry me off to an India-born Nepali at 16. I knew of him as he sometimes visited from Mumbai during his vacations and played football with the village boys. My son, who is now in his twenties, is still a baby in my eyes. I was significantly younger than him when I got married. Yet, I was expected to know how to manage a household and fulfill my responsibilities as a wife, daughter-in-law and mother. We also did not have access to tv or internet back then. Children these days are so knowledgeable. We were living in the dark age and did as we were told. Even after all these years, a part of me regrets not completing my education despite being a good student. What was the point of being studious in my circumstances? I remind people to study hard because education is such a privilege. I am invested in my sons’ education. The elder one is now doing a bachelors in AI and data science. Just as my in-laws returned to Nepal after we settled down in Mumbai, we too are considering returning to Nepal after our children are settled. <h2>Suresh Singh</h2> I cannot believe it has been 34 years since I came to Mumbai. For most of us Nepalis, जन्मभुमी (land of birth) and कर्मभुमी (land of work) are two separate geographies. Like my father, I worked as a watchman. My grandfather, too, worked in Mumbai in a mill.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250110100128_d3ca3227f428b8711ab76f617deab6e74df2302f2715a6a489512f5fb2b51067.jpg" data-media-id="editor_3" data-image-id="20250110100128_d3ca3227f428b8711ab76f617deab6e74df2302f2715a6a489512f5fb2b51067" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="Suresh Singh"> </figure>  I am now the Security Head, the highest position at my company. The city provides opportunities for those willing to seize them. In my case, I should have used the time outside my 8-hour shifts to complete my education or take skills-based training so I could be competitive in the labor market. The realisation that education is important came late to many of us. My wife was back in Achham, while I worked in Mumbai. She passed away when my son was just one-and-a-half years old. It was difficult to comprehend the news, and I rushed back. I forced authorities to let me on the flight from Tikapur. I was going to leave anyhow, even if it meant having to stand on top of the plane. Grief can make you act in strange ways. In my white clothes, shell-shocked and filled with raw emotions, I must have been quite the sight. They eventually provided me with a seat. My mother raised my son until he reached five, after which I brought him to Mumbai. As a single parent, I don’t think I was able to provide him the kind of guidance that is needed during children’s formative years. Work obligations to provide for him often took precedence. Thankfully, he grew up just fine. He recently left his secure banking career to start his venture in digital advertising. He does not have any memory of his mother. We don’t have a single photo of her.&nbsp; Diaspora Diaries is a Nepali Times collaboration with Migration Lab providing a platform to share experiences of living, working, studying abroad.

The tale of four Nepalis in Mumbai

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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