It is that time of the year again. The last-minute construction spree is underway to make up for chronic underspending of capital expenditure, right ahead of the new budget to be presented in Parliament on 29 May. The paradox is that while the government faces a severe cash crunch due to falling revenue, it spent only one-third of the development budget in the last 10 months of the fiscal year.&nbsp; The new parties in Parliament like the RSP have been trying to shake things up and urge multi-partisan consultations before the budget, but given the obsolete structure and leadership of the parties, not much is expected to change. But there is a strong argument for tax reform since the government faces a major challenge in balancing revenue with expenditure. The previous government’s ban on luxury items to augment depleting foreign reserves post-pandemic and increased bank interest led to the decline of real estate transactions resulting directly in a drop in revenue. But what makes matters worse is that the government has been profligate in spending beyond its means. Salaries, allowances, administrative expenses, grants and loans have all gone up. The government collected Rs756 billion in revenue in the last 10 months against the target of Rs1.4 trillion whereas its expenditure has exceeded Rs1.04 trillion.&nbsp; Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial Taxation is the primary source of income for any government. Contrary to what the wealthiest Nepalis think, the government is not run with their tax money but by what ordinary citizens pay in taxes. &nbsp;While tax evasion concentrates the wealth within the already privileged, the tax the poor pay is not proportional to their earnings. &nbsp; Nepal’s liberal economic policy since 1990 was expected to alleviate the income gap with trickle down effect, but the economic disparity in society is more stark than ever. A 2020 report Equality for Prosperity showed that while the wealthiest 20% of Nepalis own 56.2% of wealth, the poor 20% have only 4.1%. This economic gap is likely to have widened with the current crisis.&nbsp; This income gap is not just in Nepal. Worldwide, a skewed tax system is blamed for rising inequality. A new Oxfam report points out that two-thirds of the wealth that has increased globally after the Covid-19 pandemic is in the hands of the richest 1%. It recommends tax reforms based on wealth accumulation. “Because the tax system is not progressive in Nepal, wealth is piling up in the hands of the rich, while the income of the poor is not increasing,” explains economist Dilliraj Khanal. “We don't have a system of taxing the rich because of policy weakness and dominance of middlemen.”&nbsp; Read also: <a href="https://www.nepalitimes.com/opinion/nepals-care-economy">Nepal's care economy</a>, Bina Pradhan  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230526050528_6fe0c49de563e6fb210c25501e835186d93ecd57b2f63f8ff8154dca49daeee7.png" data-media-id="editor_2" data-image-id="20230526050528_6fe0c49de563e6fb210c25501e835186d93ecd57b2f63f8ff8154dca49daeee7" data-rendition-name="original" width="741" height="541" loading="lazy" alt="Rich-poor gap graph"> </figure>  Who pays taxes? Two-thirds of the government's annual revenue is collected not from corporations and industry, but from various taxes and revenue paid by the general public. The share of tax on corporate profit is in fact very small.&nbsp; In fiscal year 2021/22, the government collected a total of Rs989.62 billion in revenue. Of this, the income tax paid by businesses from the profits earned through private companies is only 5%. So while income tax did bring in Rs229 billion which is 24% of total revenue collected, this amount is largely from the income tax paid by ordinary citizens on their personal income. The tax paid from the profits of private companies is only Rs47.5 billion. When adding public limited companies (issued shares to the general public) and other types of companies, corporate income tax comes to only about Rs114 billion,which is just 11% of the government’s annual revenue.&nbsp; The government collected Rs314 billion from VAT last year, and this made up about one-third of total government revenue. Similarly, Rs241 billion was collected as customs duty and Rs155 billion as excise. “Society with unequal income and wealth, but equal taxes, burdens the poor and favours the rich, it is a regressive tax system that makes it difficult for the poor to survive,” says Khanal. For example, VAT is the same 13% for all Nepalis – rich and poor. &nbsp; “In essence, five-star hotels in Kathmandu and the poor are both taxed equally for LPG fuel,” he adds. “From a social justice standpoint, taxes must be based on income.” Read also: <a href="https://www.nepalitimes.com/here-now/ground-reality-of-landlessness-in-nepal/" target="_blank">Ground reality of landlessness in Nepal</a>, Rabi Giri Taxation expert Roop Khadka disagrees, saying it is impractical to have a different VAT rate for rich and poor, and even if it was introduced it would be impossible to enforce. Instead, Khadka favours revoking VAT exemption on goods and services consumed by the upper classes, which are worth nearly Rs100 billion per year. Tax evasion by the rich is another problem that needs to be tightened, and collusion between business and politicians means that the government itself abets tax evasion. Real estate speculation has helped select groups in Nepal to become immensely rich immediately, but the government collects a bare minimum in tax from profits made in land transactions. &nbsp; A real estate sale within five years is required to pay 7% of its profit. If the transition happens within 10 years, only 5% of the profit is taxed. This means most of the astronomical profits made in real estate sales in the past years have gone into the pockets of brokers and large landowners. On the other hand, the 60th report of the Auditor General's Office says many evade tax by showing less than the actual value of the property. The VAT bill scandal 10 years ago also revealed the widespread tax evasion by the commercial sector. The politics of patronage means that businesses are now colluding with politicians and bureaucrats to loot the treasury. The Tax Settlement Commission decided to collect Rs9.54 billion from businesses that have not paid tax for a long time, but the Auditor General's Office later revealed that the decision was made in cahoots with the businesses themselves who actually needed to pay Rs30.52 billion. The most egregious and blatant wrongdoing was by former Finance Minister Janardhan Sharma who was making backroom deals with select business groups importing steel rods and electric vehicles so their products got customised tax breaks in the budget last year. The deal cost Sharma his ministership but the unholy nexus between politicians and business continues with impunity.&nbsp; Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230526050528_60a9385914649170d0496b8864bcb751477820b43554c68bec524f6e2412d39b.jpg" data-media-id="editor_5" data-image-id="20230526050528_60a9385914649170d0496b8864bcb751477820b43554c68bec524f6e2412d39b" data-rendition-name="original" width="6124" height="4082" loading="lazy" alt="Kathmandu labourer NT"> <figcaption>Photo: SUMAN NEPALI</figcaption> </figure>  Alternative to the wealth tax In this state, the only sector keeping Nepal’s economy afloat is the estimated $9 billion Nepalis abroad send home every year. Still, Nepal’s debt has reached 43% of GDP, a sharp rise from 28% a decade ago. This will have a direct impact on the tax system. Sooner or later, the government will raise taxes. But for whom?&nbsp; If the status quo continues, and the poor are subjected to more taxes the income gap will widen further, inviting social unrest. Taxation relative to the size of the economy is about 22% in Nepal, one of the highest in South Asia. But for every Rs100 the government receives as revenue, only Rs23 is collected through income tax. The rest is made up of common citizens paying for the consumption of goods and services.&nbsp; All over the world, different levels of income are distinguished and income tax exemption is given to the lowest which is known as a basic exemption. Welfare states also have a weighted system of taxes of the richest that ensures socio-economic equality. But even though there is a flat tax on salary and allowances, windfall profits including from real estate transactions are not taxed properly, leading to a consolidation of wealth among certain groups. Read also: <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide">Nepal's great income divide</a> Experts have proposed wealth-based taxation to reduce the disparity between rich and poor. Economist Keshab Acharya says that the government should levy an inheritance tax on ancestral property to children as is done in the US, Japan and Europe. This encourages entrepreneurship and inspires the new generation to find creative ways to earn money. But the historical distribution of land in Nepal was largely unfair where families close to the ruling class were granted ownership exempt from tax. These assets have been handed down through generations and ownership of a large part of it is still limited to certain families.&nbsp; Historian Mahesh Chandra Regmi in his book Land Ownership in Nepal states that before 1951, more than one-third of the total arable land had been handed down intergenerationally in that manner. An inheritance tax will also reduce corruption because the mentality that wealth should be passed on to children will be weakened if such a tax is implemented. Meanwhile, land prices in Kathmandu skyrocketed thanks to the government. Since the state has spent on infrastructure that led to the rise in value of property, it should get a share of the profits “The government should get the benefit of increased property valuation in the form of taxes which will increase the spending purse for the welfare of the poor,” explains Khanal. Read also: <a href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank">Some are more equal than others</a>, Anil Chitrakar

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Nepal’s tax system widens rich-poor gap

<img width="1050" height="696" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25c89c7e80680e0439dfjpeg.jpg" alt=""/>The Supreme Court’s verdict on Wednesday requiring the Malaysian company Axiata and Ncell Nepal to pay billions capital gains tax on their purchase of Nepal’s largest private telecom provider Ncell will end a <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/06/03/taxing-time-for-ncell/" target="_blank" rel="noopener">controversy</a> that has dragged on for three years, but is expected to further chill <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">Nepal’s foreign investment climate</a>.A full bench of the apex court headed by Chief Justice Cholendra Shumsher Rana decided after two days of hearings that Reynolds Holdings Ltd was a shell company and the real owner of <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/05/16/the-tax-in-question/" target="_blank" rel="noopener">Ncell</a> was <a href="http://archive.nepalitimes.com/blogs/thebrief/2015/12/21/axiata-buys-80-stake-in-ncell/comment-page-1/" target="_blank" rel="noopener">Axiata</a>, and it was liable to pay the tax along with Ncell Nepal.Justices Rana, Mira Khadka, Bishwambhar Prasad Shrestha, Ananda Mohan Bhattarai and Tanka Bahadur Moktan were deliberating on a public interest litigation writ filed by former secretary and advocate Dwarika Nath Dhungel and six others that Ncell Nepal and Axiata were responsible to pay capital gains tax when they bought the company from the <a href="http://archive.nepalitimes.com/article/interview/Nepal-very,1104" target="_blank" rel="noopener">Swedish-Finnish telecom company TeliaSonera</a> in 2016.When TeliaSonera sold Reynolds Holdings shares in Ncell to Axiata for over $1 billion, Nepal’s Large Tax-payers’ Office had said Reynolds owed the government Rs35 billion in taxes and demanded it pay the amount and fines to a total of Rs61 billion.Ncell Nepal refused to pay that full amount, and transferred only Rs21 billion capital gains tax. After this, the writ was filed, and the Supreme Court on Wednesday also rejected a case filed by Ncell.The case became controversial after two foreign investors traded ownership of a Nepal-based telecom company. Since TeliaSonera has already left Nepal, the Court found that the buyer is liable to pay capital gains tax if the seller did not.Senior advocate Surendra Bhandari says that it is international practice that the seller has to pay capital gains tax on any sale of assets, but says the Supreme Court is right in assessing that the seller was allowed to leave the country without paying tax and to put the onus on the buyer.Wednesday decision now sets a precedent for the buyer to also be responsible for paying capital gains tax. Officials at the Internal Revenue Service say that although the country’s treasury will benefit from the tax payment, there has been no investigation into why the seller was allowed to get away without paying taxes, and fears that the case will have negative repercussions on future investment.Eighty percent of Ncell’s ownership is with Reylonds Holding registered in the British Virgin Islands and 20% with Niraj Govinda Shrestha. Ncell’s main promoter was Reynolds Holding through TeliaSonera’s office in Norway.According to Nepal’s tax laws, TeliaSonera’s sale of Ncell to Axiata had a capital gains tax liability of Rs35 billion. Axiata had written to the Internal Revenue Office before the sale if it was liable to pay capital gains tax in Nepal, but there was no reply from its director at the time, Chudamani Sharma.After that the tax controversy got mired in politics, with various party leaders and former CIAA chief <a href="https://archive.nepalitimes.com/regular-columns/Legalese/parliament-and-court-plays,822" target="_blank" rel="noopener">Lokman Singh Karki</a> vying for underhand deals that would let the guilty go free. Says advocate Bhandari: “The Supreme Court decision seems to be driven by the logic that any buyer should first inquire about the liabilities of the seller before any purchase.”However, other retired revenue officials say it is unfair to blame Axiata, and ask it to pay capital gains tax that should have been paid by TeliaSonera. He says the really guilty party here are the politicians who allowed TeliaSonera to leave without paying taxes, and this will dim Nepal’s investment climate just before an Investment Summit planned for next month, and after <a href="https://www.nepalitimes.com/here-now/to-davos-with-hammer-and-sickle/" target="_blank" rel="noopener">Prime Minister KP Oli’s visit to Davos</a> with the message that <a href="https://www.nepalitimes.com/editorial/crony-communism/" target="_blank" rel="noopener">Nepal was open for business</a>.The Surpeme Court verdict has also exposed a loophole in Nepal’s tax laws that allows shell companies to get away without paying taxes. TeliaSonera had its dividends frozen in Nepal by the Large Tax-payers’ Office, but the Supreme Court allowed the company to repatriate its profits.   According to the <a href="https://www.nepalitimes.com/latest/nepalis-in-tax-havens-swiss-banks-money-laundering/" target="_blank" rel="noopener">Nepal Leaks exposes</a> by the Centre for Investigative Journalism and the International Consortium of Investigative Journalists, Ncell owners had used the company to launder money as foreign direct investment. Ajeya Raj Sumargi, a businessman close to the former Maoist party and Birendra Mahato of the Federal Socialist Forum Nepal and brother of billionaire overseas Nepali Upendra Mahato were implicated in documents leaked through the Panama Papers about tax havens.The verdict this week opens the door for Nepal to tax FDI that is coming in from offshore tax havens.   Read also: <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">Making Nepal FDI friendly,</a> Shyamal K Shrestha<a href="http://archive.nepalitimes.com/news.php?id=962#.XFwMylUzaUk" target="_blank" rel="noopener">Fight for FDI</a>, Ashutosh Tiwari<a href="https://archive.nepalitimes.com/article/from-nepali-press/Ncell-has-complied-to-all-obligations,3047" target="_blank" rel="noopener">"Ncell has obliged to all obligations"</a>

Supreme Court weighs in on Ncell tax dispute

The Himalayan mountains are also known as the Third Pole because it is the largest repository of water stored as ice outside the two polar regions. However, it is divided by political boundaries that nature does not recognise – be it the air pollutants that flow or migratory birds that fly over the peaks. The Himalaya is also a geopolitical and climate change hot spot. In these geopolitically and environmentally challenging times, it becomes even more important to create oases of conversations, where candid and future-oriented discussions can take place at a people-to-people level. Platforms dominated by inter-governmental agencies have been able to do little. The Himalayan Future Forum (HFF) aims to be a platform that stands at the crossroads of climate, community, and connectivity, fostering dialogue and promoting citizen-led action. Growing up in the Indian Himalayan town of Kalimpong and spending the nascent stages of my career helping in setting up offices of the award-winning Annapurna Conservation Area Project (ACAP) that fostered community involvement in conservation, I have witnessed transformations both good and bad.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205070244_6e2087b11fff0cc6704eebaee6f169848a9cfd57c4a02d7d1fd45db2526d2f67.jpg" data-media-id="editor_0" data-image-id="20260205070244_6e2087b11fff0cc6704eebaee6f169848a9cfd57c4a02d7d1fd45db2526d2f67" data-rendition-name="original" width="5559" height="3711" loading="lazy" alt="HFF 2026"></figure>  There are initiatives like Nepal’s forest cover doubling in 30 years, or Bhutan’s drive for high-end sustainable tourism. At the same time, I have seen landscapes destroyed by bulldozers and tall buildings competing for air and sunlight in expanding cities. From crony capitalists patronised by political leaders engaged in plundering natural resources to citizen-led initiatives on cleanliness drives and waste management, the Himalayan region is full of stories from both ends of the spectrum of disappointment and hope. Life is about observing and, in one’s little sphere of influence, taking baby steps towards catalysing positive transformation. This is why, Nepal Economic Forum (NEF) had been hosting the Himalayan Consensus Summit in Nepal from 2014 to 2020 following which the Himalayan Future Forum (HFF) was incubated since 2023. HFF is an initiative to encourage multi-faceted dialogues on the topics of climate, community, and connectivity in the Himalayan region by bringing together leaders, experts, institutions, and practitioners from different countries and sectors.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205070244_a7e673507dcdb6e265cb6f76f2890f17af36f17006a7f6d0f2f0e1a288c89a09.jpg" data-media-id="editor_1" data-image-id="20260205070244_a7e673507dcdb6e265cb6f76f2890f17af36f17006a7f6d0f2f0e1a288c89a09" data-rendition-name="original" width="5364" height="3581" loading="lazy" alt="HFF 2026"></figure>  In this year’s edition, there are a series of sessions on 6 February with 34 speakers including ten international panelists. On day two the Himalayan Haat aims to showcase a variety of local, indigenous, and sustainable products. As in 2024, it is believed that the conversations and interactions at the HFF will lead to more partnerships and collaborations from climate financing to managing disasters to taking Himalayan brands global. YOUNG FELLOWS Beyond this, there are sessions on topics such as geopolitics and the Himalaya, as well as on migration which are especially relevant considering the past few years that have seen many events which impacted the global world order. One of the key features of HFF, guided by our ethos of bringing together experts, experiences, and enthusiasm, is also to ensure stronger youth representation through the HFF Youth Fellowship. This year, following a rigorous screening process, youth fellows were selected out of an overwhelming response. Those chosen will be able to attend the events as well as collaborate in future research and publications. Selected fellows will also be provided with full scholarships to the public policy program at Takshashila Institution, an independent centre for research and education in public policy in Bangalore. In a region where half of the population is under 25 years, it is important to get the future generations also in the room.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205070244_3416bd14d5249afeb357b11f760f49b0cd1d77feeac71d820406b2d9e86696bc.jpg" data-media-id="editor_2" data-image-id="20260205070244_3416bd14d5249afeb357b11f760f49b0cd1d77feeac71d820406b2d9e86696bc" data-rendition-name="original" width="5273" height="3520" loading="lazy" alt="HFF 2026"></figure>  Nepal presents an ideal location to hold meetings such as this, where no-holds-barred conversations can take place face-to-face. The country has good air connectivity and one of the most liberal visa policies in Asia. And while Davos is a good example to follow for convening global voices, we need not have so many private planes burning fossil fuel, as we can have participants take scheduled commercial flights or have regional participants simply take a road trip. Ultimately, the Himalayan region is also about festivities. No exchange of ideas is complete without immersing in art, culture, culinary experiences, and music. This is why HFF envisages graduating to a Himalayan Jatra, rooted in a region where people smile from the heart, and teach the world to smile with them. Join us at HFF 2026 as we move closer to this vision. See the schedule <a href="file:///Z:/%231297%20February%206/pix/page%209/HFF%202026%20Program%20Schedule%20(1)_compressed.pdf">here</a>. Sujeev Shakya is Chair of Nepal Economic Forum and Convenor of the Himalayan Future Forum.

Himalayan Futures Forum 2026

Kathmandu Valley alone now has over 700 cafes serving mugs made from freshly ground beans. ‘Americano double shot’, ‘Cappuccino’ and ‘Mocha’ have entered the Nepali language. It has also become a cash crop for thousands of farmers with near-perfect growing conditions along the Himalayan foothills.&nbsp; Yet, annual coffee production has declined by 15% to only 550 tons in the past years, and this meets only a fraction of the domestic demand of 6,000 tons.&nbsp; Nepali coffee fetches $22 per kg in the international market, but Nepal only exports 3% of its crop. If cleverly promoted, the international demand for Nepali coffee can be 8,000 tons. “Coffee is all about story-telling,” explains <a href="https://archive.nepalitimes.com/article/business/Gagan-Pradhan-and-Himalayan-Java,1076">Gagan Pradhan, founder of Himalayan Java Coffee</a>. “Nepali coffee has brand value because it is grown in the highest elevations on earth and is a cash crop for cooperatives and small farmers. There is tremendous potential for growth.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100216_1f366d8a85cc133fedee0ee72d7768d3a23bf51f8d43edbdadf98443bc0c01ba.jpg" data-media-id="editor_1" data-image-id="20260205100216_1f366d8a85cc133fedee0ee72d7768d3a23bf51f8d43edbdadf98443bc0c01ba" data-rendition-name="original" width="2000" height="1518" loading="lazy" alt="coffee culture in Nepal"> </figure>  The reason for the decline in coffee production lately is attributed to erratic weather caused by climate change, but mostly it is because it is manual-intensive, needing initial capital and patience for a return on investment. The strategy that makes most sense for <a href="https://nepalitimes.com/here-now/make-way-for-makalu-coffee">Nepal’s coffee industry</a> is to sell it as a rare, specialty product.&nbsp; Says Raj Kumar Banjara, master trainer at Nepal Coffee Academy and originator of the Himalayan Arabica brand: “There is no better crop for Nepal because we have the ideal soil and weather to grow specialty coffee, which can be exported to third countries directly instead of sending it through India like with ginger, cardamom, or tea.” These favorable conditions are at altitudes between 800m to 1,600m along the mid-mountains and temperature not exceeding 22°C, which allows cherries to &nbsp;develop slower, giving it a denser taste with complex flavours of fruits and nuts.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100216_35e470381d258d9598d30165d0dbb6b4294c389c61695bf8c47d72d2273b4629.jpg" data-media-id="editor_3" data-image-id="20260205100216_35e470381d258d9598d30165d0dbb6b4294c389c61695bf8c47d72d2273b4629" data-rendition-name="original" width="3872" height="2592" loading="lazy" alt="coffee culture in Nepal"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100216_f7ccb42d7a7fb656dadc7ba5132a6243b8f99a28f7877875172411b7a4c96bc0.jpg" data-media-id="editor_4" data-image-id="20260205100216_f7ccb42d7a7fb656dadc7ba5132a6243b8f99a28f7877875172411b7a4c96bc0" data-rendition-name="original" width="1024" height="768" loading="lazy" alt="coffee culture in Nepal"> </figure>  This is ‘Arabica’ coffee, and it is also considered ‘organic by default’ because farmers have limited access to chemical pesticides and fertilisers, adding to its premium. All of Nepal’s coffee is grown in only 4,300 hectares total, and this is just 0.36% of the area suitable for coffee farming. Still 31,000 households across 44 districts depend on this cash crop.&nbsp; Challenges include out-migration, limits on land ownership, and climate breakdown leading to colder, drier winters, droughts and heat stress. Shreeyanch Shrestha is the founder of Samparka Cloud Loyalty, a startup that helps businesses retain customers by giving them insights about customer behaviour. Among the services offered is a digital loyalty card for coffee shops, one of his biggest clientele.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100216_c80e17ac78016ae5a90f4b27105e16af6c39d1422665f9f9c9b1d8404e5e7d54.jpg" data-media-id="editor_5" data-image-id="20260205100216_c80e17ac78016ae5a90f4b27105e16af6c39d1422665f9f9c9b1d8404e5e7d54" data-rendition-name="original" width="1280" height="960" loading="lazy" alt="coffee culture in Nepal"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100212_968c5b264ec2fb65014dc3ebc2777f0bf19f596a4152c59f9cad9d99dee79df7.jpg" data-media-id="editor_6" data-image-id="20260205100212_968c5b264ec2fb65014dc3ebc2777f0bf19f596a4152c59f9cad9d99dee79df7" data-rendition-name="original" width="1200" height="900" loading="lazy" alt="coffee beans"> </figure>  Shrestha is also a coffee enthusiast, and recently collaborated with Baato Maps on the playfully designed ‘Kathmandu Coffee Map’.&nbsp; “This was a marketing campaign but also a way to pay tribute to cafe owners we worked with,” he says. “A new generation of coffee farmers, processors, roasters and consumers seem to want to invest in upgrading their coffee experience.” COFFEE CULTURE Operators such as Raj Kumar Banjara have been in that game for over 30 years, even earning a PhD in Coffee Agriculture, running farms and teaching roasting and barista courses. Now, he makes short how-to videos on social media. Banjara’s Academy is run by Specialty Coffee Association certified Q Graders and Authorised Trainers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100216_22433d3a8b71224cd8cb38105b9eb5502a104e03ccec2e3864c8b23efc9f3fc6.png" data-media-id="editor_7" data-image-id="20260205100216_22433d3a8b71224cd8cb38105b9eb5502a104e03ccec2e3864c8b23efc9f3fc6" data-rendition-name="original" width="3612" height="2028" loading="lazy" alt="coffee culture in Nepal"> </figure>  Also promoting a coffee culture through social media is Santosh Shah of Bariko Coffee. He documents his process on Instagram, from hand picking and processing coffee cherries to brewing.&nbsp; Nepal appears to be riding the Third Wave of Coffee (see box) as the beverage moves away from the café chain culture to one that values knowledge of the cherries, beans, the roasting process and brewing -- right from the plant to the cup.&nbsp; Along the way, there are tales to be told about where the coffee is grown, who grows it, and how farmers get a fair price for the product. Coffee then becomes a shared social experience that directly connects the consumer to the producer. Nima Tenzing Sherpa returned to Nepal from the United States to start Lekali Coffee Estate in 2018, and produces fine single origin coffee beans so that the quality of the product improves the quality of life of the growers.&nbsp; He told Nepali Times: “Specialty-grade beans are the only future for Nepal’s coffee industry. I am continuously hunting for the best coffee origins in Nepal.” &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260205100212_e08ba44d6396eb75da868404dd8cf2a26b71cd6d90ab3afaf7175790c111d21e.jpg" data-media-id="editor_8" data-image-id="20260205100212_e08ba44d6396eb75da868404dd8cf2a26b71cd6d90ab3afaf7175790c111d21e" data-rendition-name="original" width="3000" height="4000" loading="lazy" alt="coffee beans"> <figcaption>Photo: LEKALI COFFEE ESTATE </figcaption> </figure>  HISTORY OF COFFEE Human consumption of coffee began in Ethiopia when herders found their goats became perky after eating beans from a wild Arabica bush. The first commercial cultivation of the brew began in Yemen 600 years ago. &nbsp;&nbsp; Nepal’s coffee history is much younger. A holy man is said to have brought coffee seeds from Burma in 1938, and planted them in Gulmi, the district in the mid-mountains where the first coffee nursery was set up in 1981. The Nepal Coffee Company was founded in 1983 by Krishna Ghimire in Manigram near Butwal which educated farmers about the crop and recruited them to cultivate it. He then roasted the beans, and convinced the BhatBhateni stores, which had just opened, to sell it. The company still supplies coffee to cafes and has its own brands and farm. It supplies green beans to those who want to self-roast, or build a brand. In the 1990s, the National Tea and Coffee Development Board was established, and Himalayan Java Coffee (Nepal Made, right) opened its first shop in Kamaladi before moving to Thamel. Itr now has nearly 100 franchises across Nepal and overseas.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260207030236_1908f4a4246d373f51affa8ac48be90129e888f1222b8f10e5cd25421e931dd8.jpg" data-media-id="editor_9" data-image-id="20260207030236_1908f4a4246d373f51affa8ac48be90129e888f1222b8f10e5cd25421e931dd8" data-rendition-name="original" width="2052" height="1455" loading="lazy" alt="coffee map"> </figure>  What is the Third Wave? First Wave: Profit-driven, mass marketing, air tight containers and instant coffee. Consumption of coffee worldwide starts growing.&nbsp; Second Wave: Artisan-driven, origin and roasting style become important, epitomised by Starbucks and espresso. &nbsp; <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Nepali-specialty-coffee,4106">Third Wave</a>: Characteristics of the beverage take centre stage: origin of the beans, consistent processing techniques, and roasting style. Independent coffee shops demonstrate craftsmanship and knowledge of coffee beans from plant to the cup, promoting ethics and transparency.&nbsp; Coffee Districts Coffee is grown in over 44 districts of Nepal (see map, above). In the last fiscal year, Nepal produced 550 tonnes of Bourbon, Typica and Yellow Caturra varieties of Arabica coffee. The total plantation area in Nepal is 4,300 hectares, a fraction of the total suitable land. &nbsp;

Caffeine buzz

When I landed in Kathmandu last November, I arrived with a Diwali hangover. Not the festive kind, but the coughing, dust-coated, throat-scratching kind gifted by North India’s winter air. After a decade of breathing in Delhi’s seasonal gas chamber, my lungs were in an open revolt. But within days of landing in Kathmandu, my cough vanished. It felt almost miraculous. The air was crisper. The Air Quality Index was kinder, and the Himalayan peaks rose on the horizon.&nbsp;
But by the third week, the familiar grey veil returned. First as a faint blur, then peak by peak the Himalaya began to disappear. Locals said it had been getting worse every year.&nbsp;
Much of this haze is not Kathmandu’s doing. What drifts into Nepal each winter is a toxic spillover from the plains of North India and Pakistan: black carbon, brown clouds, and fine particulate matter carried across borders by seasonal winds. Kathmandu’s bowl-shaped valley simply traps what the region exhales.
Abid Omar, founder of the <a href="https://pakairquality.com/" target="_blank">Pakistan Air Quality Initiative</a>, put it bluntly: “We often view air pollution and climate change as separate silos, but in the Himalaya, they are one and the same.”
Black carbon is essentially soot from diesel emissions, brick kilns, and crop burning. It may be short-lived in the atmosphere, but when ash settles on snow and ice, it reduces reflectivity and accelerates melting.&nbsp;
Omar adds, “Black carbon is a threat to the water security of the entire Indus and Ganges basins.”
What burns on both sides of Punjab do not stay in Punjab. It ends up on glaciers that feed rivers, sustaining hundreds of millions of people downstream.
In November 2024, AQI levels in New Delhi hovered near 500 and about the same time Lahore briefly became the world’s most polluted city, with the AQI count crossing 1,100. These numbers are not abstract.
According to the <a href="https://www.stateofglobalair.org/resources/archived/state-global-air-report-2024" target="_blank">State of Global Air 2024 report</a>, India recorded more than 2 million deaths attributable to air pollution in 2023. Bangladesh and Pakistan each saw over 200,000 deaths. Air pollution is now one of the leading causes of premature death across South Asia.
Nepal, often imagined as cleaner by default, tells a sobering story of its own. Air pollution in Nepal led to an estimated <a href="https://www.worldbank.org/en/news/press-release/2025/06/17/air-pollution-is-the-number-one-health-risk-factor-in-nepal#:~:text=Vehicle%20Emissions:%20Continuing%20to%20electrify,airflows%20carry%20pollutants%20across%20borders." target="_blank">48,500 premature deaths</a>, with the loss of more than 1.4 million disability-adjusted life years. The University of Chicago’s <a href="https://aqli.epic.uchicago.edu/post/nepal-capital-chokes-as-wildfires-rage-en" target="_blank">Air Quality Life Index</a> estimates that particulate pollution cuts 3.4 years off the life of the average Nepali. In the Tarai region, life expectancy drops by nearly five years. In Kathmandu, residents lose 2.6 years.
Says infectious disease specialist Anup Subedee: “Air pollution is killing at a far higher rate than Covid-19 did during its worst years in Nepal. People are dying in their twenties of cancer, or having heart attacks and strokes in their thirties and forties.”
Nearly <a href="https://www.icimod.org/press-release/kathmandu-choked-on-polluted-air-for-75-of-the-last-90-days/?utm_source=chatgpt.com" target="_blank">40 per cent of winter particulate pollution in the Kathmandu</a> valley originates outside Nepal. Black carbon carried from Punjab, Haryana, and Uttar Pradesh in India, besides parts of Pakistan, rides the winds north, settles on Himalayan snow, and accelerates glacier melt by absorbing heat.
“The pollutants travel across borders within shared airsheds, creating one gigantic plume of polluted air over India, Nepal, Bangladesh, and Pakistan several times a year,” says Subedee.
In some Himalayan regions, <a href="https://www.icimod.org/success-stories/chapter-2/black-carbon-and-glacier-melt/" target="_blank">scientists estimate</a> that black carbon can increase localised melt rates by up to 30%. Yet global climate negotiations continue to treat glacial loss primarily as a carbon dioxide problem.&nbsp;
CHINA’S APPROACH
The South Asian story is transboundary, and more immediate as well as more preventable. This is not only about emissions. It is about coordination, and China offers an instructive contrast.
Since 2013, China has dramatically improved its air quality by declaring a '<a href="https://www.aljazeera.com/opinions/2025/12/12/what-new-delhi-can-learn-from-chinas-war-on-air-pollution#:~:text=In%20the%20following%20years%2C%20Beijing,29.3%CE%BCg%2Fm%C2%B3%20in%202024." target="_blank">war on pollution</a>'. A major air pollutant, suspended PM2.5 levels fell sharply through strict controls on coal, vehicles, and industry, massive investment in renewables, and legally binding national action plans.
Crucially, China shifted from city-by-city firefighting to a regional airshed approach. Provinces shared data, coordinated emergency responses, enforced unified standards, and tied environmental performance to political accountability. South Asian countries have done none of this.
Isolated national actions are insufficient when pollution itself ignores borders. India, Nepal, Bangladesh, and Pakistan share the same airshed. Without cooperation, each country keeps breathing its neighbour’s mistakes.
“As the government representing the largest population affected by air pollution, India should lead this effort. Instead, the region has drifted away from cooperation, and the cost is becoming catastrophic,” Subedee says.
The haze over Kathmandu is not only Nepal’s burden. It is a <a href="https://sapannews.com/2024/12/27/could-climate-diplomacy-be-the-googly-a-gamechanger-for-regional-cooperation/" target="_blank">regional failure</a>. The melting of South Asia’s glaciers is not just a global warming story. It is also a local one, written in the smoke rising from our own fields, factories, and highways.
If we keep ignoring black carbon, the Himalayas will keep losing time, snow, and stability. The disappearing peaks of Kathmandu are not a metaphor. They are a warning.
And like the air itself, that warning is already crossing borders. ©Sapan News
Pragyan Srivastava is an Indian journalist and associate editor at <a href="http://www.sapannews.com/" target="_blank">Sapan News</a>. <a href="mailto:pragyan@sapannews.com" target="_blank">pragyan@sapannews.com</a>

Cleaning up the Himalayan airshed

This is the 82nd 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. In September, under pressure from GenZ activists, Home Minister Om Prakash Aryal pledged to ensure that overseas Nepalis would be able to vote in the March election. The analysis from experts, election officials, and much of the public was that the Election Commission was not prepared to ensure out-of-country voting in such a short time.&nbsp; But just because the diaspora cannot exercise its franchise does not mean Nepalis abroad cannot influence the election outcome. The 2021 census said 2.1 million Nepalis lived abroad, but realistically three times more live, work and study overseas.&nbsp; Being breadwinners also makes them decision makers for families back home. Most have left because they could not get meaningful jobs and sought opportunities abroad, which means they are not happy with the way Nepal has been governed by the established parties and leaders.&nbsp; The diaspora is therefore mostly an anti-incumbent vote bank, which was one reason the political leadership blocked out-of-country voting for so long – despite a Supreme Court ruling that all citizens had a constitutional right to vote, wherever they lived. &nbsp; In the 2022 polls, overseas Nepalis had already shown considerable influence by backing newer and alternative candidates like Balendra Shah for Kathmandu mayor, and parties like the RSP. In the four years since, and especially since the GenZ movement, support for a political shakeup has grown even stronger. So has technological reach that enables the diaspora to politically organise from overseas. &nbsp;‘Technology has reduced the distance in communication, but has also lowered the barrier in a way that allows overseas Nepalis to pressure family members,’ author Narayan Wagle wrote in an op-ed on Setopati this week. Indeed, all it takes for family members to be convinced whom to vote for is an ultimatum that relatives will stop sending money. With less than a month to go for the 5 March election, many Nepalis overseas are campaigning remotely for preferred candidates, even if they cannot themselves cast ballots.&nbsp; The overwhelming feeling seems to be that younger candidates should be given a chance. &nbsp;&nbsp; Read what some Nepalis abroad have to say. NEPAL'S NON-VOTING MIGRANTS <h2>My Respected Parents</h2> Anil Gole, Romania [This letter is a letter to my parents ahead of the election. They are UML supporters, my uncle is for the Nepali Congress (NC), and my grandfather supports the Nepali Communist Party (NCP).] My Respected Parents, I hear that election fever has picked up in the village. New faces with new ways of thinking have emerged this time. I don’t really understand politics, so what I say may feel bitter. But Father, when I see the flag with the sun in your hands, I remember the heat of Qatar from 12 years ago, your sunburnt skin and mother’s cheeks wrinkled with worry. Perhaps Uncle, too, found the Saudi heat so intolerable that he returned home. That may be why while seeking shade, he found the NC tree symbol endearing. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Great uncle spent his whole life back home in the village, which is perhaps why he identifies with symbols like the plough, the sickle, and the hoe.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260206040236_669402ff85bdbd58360c12e10d23900ad99596b7a8dc196b8db1bcfe7e81e80e.jpg" data-media-id="editor_0" data-image-id="20260206040236_669402ff85bdbd58360c12e10d23900ad99596b7a8dc196b8db1bcfe7e81e80e" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Overseas vote bank NT"> <figcaption>Anil Gole</figcaption> </figure>  Even then, at any cost, vote for the same politicians. Vote for the same politicians who have not developed the country, who have not fed the poor, whose sons have not been shot.&nbsp; What if the country does not change? I have changed my country. When homesick, I have learnt what it feels like to suffocate in tears under a blanket. Now my younger brother is old enough. Send him here as well. We brothers will earn together. We will marry off our sister in a grand way. So what if the country does not develop? We will build a small, cute house with a big yard. You can play with the grandchildren there. And when they grow up, they too can migrate. But if you vote for the right people and the country gets good leaders, future generations will not have to sweat in foreign lands. They will not have to leave the comfort of a mother’s lap to spend nights abroad in unknown cities. No matter how hard things get, they will not have to lie in letters to their mothers,saying, “I’m doing fine, Mother.” I have not lost courage because of your blessings. My body is here, but my mind is always back home in Nepal. Your children are here, but my children’s future is in your hands. That is why vote for the same politicians whose hearts did not bleed even when the young were killed, the same politicians whose children have not come home in a box. Mother and Father, please take care of each other. Yours truly, Your fortunate migrant son <h2>Algorithm versus vision</h2> Ambika Paudel, Qatar I have been in Qatar for 18 years, and work in the facilities management, engineering, shipping and logistics &nbsp;industry. I get to interact with people from across the world, and they are closely connected with their embassies through online systems and communities. I lead the Nepal Expatriate Community that has multidisciplinary professionals and have observed the need to revise the narrative around migrants. We are here for our families. The sacrifices we make are for them. We are working for our own career growth and families because there were no opportunities back home. Many of us have achieved a good standard of living through our hard work and merit. When I send money to Nepal, it is for my family and the benefit to the government is a byproduct. It would have been good if we got to vote, too. That possibility and promise got lost somewhere in the policy confusion and lack of technical capacity. Overseas Nepalis are also deeply invested in the election, but it is largely algorithm based. We are not questioning the vision of the candidates.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260206040236_dc05b31d3abcf126360d923615a785a36de5b62a8695af9cbff000b586d0336d.jpg" data-media-id="editor_1" data-image-id="20260206040236_dc05b31d3abcf126360d923615a785a36de5b62a8695af9cbff000b586d0336d" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Overseas vote bank NT"> <figcaption>Ambika Paudel</figcaption> </figure>  Our parents back home are the actual voters, and those overseas &nbsp;are talking to them. I don’t think they will be swayed just based on calls, and they shouldn’t be either. We are prioritising algorithms and words and social media boosts over vision, experience, and concrete plans. I am for the NC but I am not a blind supporter. Despite being at the forefront of every significant democratic change in Nepal’s history, the party has had lapses but it is currently on a new trajectory. Not all candidates of all parties are good so we have to elect competent leaders and question them. Whatever promises they make need to be examined for delivery and vision.&nbsp; There are also Congress loyalists who are swayed and influenced by the new, but I let it be — it is their right, their choice. Change requires vision and experience, it should not be based on hype, I remind them. Over online conversations, I tell them to vote wisely so they don’t regret it later. I returned from my break just recently so I cannot come home to vote as it will be too expensive. There are good human resources back in Nepal and in the diaspora which can be used. There are people in decision-making positions in their companies who are very capable and intelligent who could contribute to Nepal. These are missed opportunities in our policymaking and governance: Nepal needs to create opportunities for capable Nepalis.&nbsp; The new government can make the investment climate better through a one-door system so that services are accessible, quick and there is no need to go to multiple offices to start a company or pay taxes. This would also stop unnecessary bribes and other hassles. I don’t have plans to return in the near future. I have a good job and am earning well. I came to Nepal between 2016 and 2019 and remigrated again after things did not work out. <h2>The young need convincing</h2> Jeevan Kumar Dewan, Malaysia I have been living in Malaysia since 2001, and am an active member of the UML wing here. There is excitement about the upcoming election, but we are bound by contracts so cannot go home to vote.&nbsp; There was hope that we would be able to vote from overseas, but there were questions of security. Even though we won’t be able to vote, people are actively participating online and using social media to show their support to their candidates and parties of choice.&nbsp; Political parties prioritise organisational expansion overseas but there is no direct campaigning during elections. It is through conversations and social media engagement that people are participating, debating and expressing their support and loyalty.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260206040240_2ed54377199b995f0a19b7be98fff79004c13787c7a07185a47427467237277a.jpg" data-media-id="editor_2" data-image-id="20260206040240_2ed54377199b995f0a19b7be98fff79004c13787c7a07185a47427467237277a" data-rendition-name="original" width="2048" height="1536" loading="lazy" alt="Overseas vote bank NT"> <figcaption>Jeevan Kumar Dewan</figcaption> </figure>  &nbsp;As a UML supporter, it is my duty to remind people to cut through the noise and to separate facts and truth. While elderly voters don’t need much convincing as they are loyal to the party, I do engage a fair amount with the young voters. I have to remind them not to get distracted by the videos shared in social media platforms. All new is not good just because it is new if there is no real political agenda. There is no doubt that we need change but being new is not enough nor can we overlook the contributions and experience of the old parties. All we can do is talk to the voters and try to get our message across. It is important to prioritise better managed migration and also to ensure migrants have proper guidance on how to invest their hard-earned money in productive sectors, even when it is not much, so they have something to fall back on after returning. I don’t have plans to return immediately, I go back and forth quite frequently. I have a stable job and I have seen how my friends who left secure jobs to return home ended up remigrating after their investment failed. I will stay here and continue with my job which I am happy with. <h2>The old need convincing</h2> Prajwal Poudel, Saudi Arabia I work as a data entry analyst in Saudi Arabia. People overseas have seen development, but have also experienced challenges of being away from home. Politicians are aware of this and didn’t want us to vote.&nbsp; When I was in Nepal, I did not care much about politics. It was not for me. But overseas we care about Nepal even more. Perhaps you don’t know the value of something unless you lose it. Perhaps distance makes hearts grow fonder. I am definitely more invested in Nepali politics after leaving.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260206040240_43ea30dfb58b873760e40177d84dca4bb34f1c9cdffdbc9a7c5a0c26b15e78b9.jpg" data-media-id="editor_3" data-image-id="20260206040240_43ea30dfb58b873760e40177d84dca4bb34f1c9cdffdbc9a7c5a0c26b15e78b9" data-rendition-name="original" width="738" height="1600" loading="lazy" alt="Overseas vote bank NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260206040240_dfbc2302411e1ae32a4ab048fa34d940147942c00845d82d9cf59574f5c2e0fe.jpg" data-media-id="editor_4" data-image-id="20260206040240_dfbc2302411e1ae32a4ab048fa34d940147942c00845d82d9cf59574f5c2e0fe" data-rendition-name="original" width="1080" height="1200" loading="lazy" alt="Overseas Nepali vote bank NT"> </figure>  So I have to make sure that family members back home make the right decision this election. My cousin is also with me in Saudi Arabia and I was talking to his parents and telling them to vote correctly. They have voted for the same faces for two decades. I said that if there had been changes we would not have had to migrate. That this time they should accept the masu-bhat and alcohol, say UML-Congress jindaawaad, take the money offered but finally stamp on Ghanti.&nbsp; My cousin posted a recording of that call spontaneously on Tiktok. It went viral perhaps because it resonated with the youth. We cannot vote but we have to make sure at least our close family members vote correctly. My mother also seems ready for a change despite her loyalty to the UML, but I tell her she does not need to change her party just change her vote this year.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260206040240_0234dfec6f97a726f67120124833bb3fdc84cbf794eee910736649c5624e7576.jpg" data-media-id="editor_5" data-image-id="20260206040240_0234dfec6f97a726f67120124833bb3fdc84cbf794eee910736649c5624e7576" data-rendition-name="original" width="1168" height="1556" loading="lazy" alt="Overseas vote bank NT"> <figcaption>Prajwal Poudel</figcaption> </figure>  We need to give the new ones a chance. But it’s also true that the new will not bring dramatic changes overnight. Conversations here are all about the election back home. We talk about who is getting elected from their areas. Who they think will win. But the hottest topic of conversation is of course Jhapa. For those of us abroad, the government should make our embassies stronger. Back home, I hope corruption will be curbed and that good roads will reach all corners of the country. This will allow people to develop the country themselves.&nbsp; I am the son of a Malaysia returnee. I even worked as a teacher in Nepal. I could not even afford decent clothes so I left everything and came here. I don’t know when I will return.

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