<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101156/636b79a29c7e80680e064713jpeg.jpg" alt="" width="1000" height="577"/><figcaption>Sunday's cabinet meeting at the prime minister's resident in Baluwatar, the first since Prime Minister Oli had his second kidney transplant two weeks ago. Photo: PMO</figcaption></figure>Nepal’s Cabinet decided on Sunday to close all land border crossings with neighbouring China to the north and India to the south for one week starting Monday.The move came after unconfirmed reports that a Nepali businessman who had gone to Patna for treatment had been diagnosed with a <a href="https://www.nepalitimes.com/opinion/what-is-novel-about-the-novel-coronavirus/" target="_blank" rel="noopener">coronavirus infection</a> at a hospital there.The businessman had recently got a kidney transplant in Sri Lanka and had returned to the border town of Birganj last week via New Delhi and Kolkata. He was sent to Patna after suffering from a cold, but Department of Health Services spokesperson Mahendra Shrestha said it was not confirmed if he indeed has <a href="https://www.nepalitimes.com/editorial/this-is-a-test/" target="_blank" rel="noopener">COVID-19</a>.Family sources also confirmed that the businessman, J Rungta had in fact tested negative for <a href="https://www.nepalitimes.com/opinion/global-thinking-and-local-action-on-coronavirus/" target="_blank" rel="noopener">coronavirus</a>, and that media reports were “fake news”.Read also: <a href="https://www.nepalitimes.com/banner/kathmandu-under-semi-lockdown/" target="_blank" rel="noopener">Kathmandu under semi-lockdown</a>, Alisha Sijapati<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/nepal-quarantines-passengers-on-singapore-flight/" target="_blank" rel="noopener">Nepal quarantines passengers on Singapore flight</a>Meanwhile, the Cabinet decision came hours before Sunday midnight when <a href="https://www.nepalitimes.com/latest/all-nepal-flights-cancelled-22-31-march/" target="_blank" rel="noopener">all international flights from Kathmandu will be banned till 31 March</a>  Ferry flights by Etihad, Qatar Airways and others will still be landing in Kathmandu till Wednesday to fly out tourists and expatriates stranded in Nepal.Prime Minister Oli had also announced that all intercity long-distance buses will stop plying in Nepal from Monday. This has sent people scrambling to get out of Kathmandu Valley to their home districts in overcrowded buses and even lorries. Local public transport will be allowed to operate.Cabinet also decided to set up a Rs500 million fund to help medical personnel in Nepal acquire personal protective equipment including masks and gowns. The ministers agreed to donate one month salary each towards the fund.Meanwhile, towns in the central Tarai in Siraha, Saptari, Dhanusha, Parsa and other districts along the Indian border have closed border checkpoints in consultation with authorities on the other side. This is important because the Cabinet decision would have closed only the main border checkpoints.

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Nepal closes land border with India, China

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171132/636933d09c7e80680e03dfbejpeg.jpg" alt="" width="996" height="1500"/><figcaption>Raghu Thakur is a barber from Bihar who has been cutting the hair of Nepalis for the last 20 years. Photo: MONIKA DEUPALA</figcaption></figure>In the town of Kasara outside Chitwan National Park, the paddy was being harvested last week. The contract labourers had come across the Nepal-India border at Thori, and were busy manually slicing rice stalks with their sickles. The Nepali farmers who had hired them could afford to do so because their three sons were all <a href="https://archive.nepalitimes.com/article/nation/nepalis-from-chitwan-to-chidoya,4110">working in Japan</a> and sending money home.Across the country, including Kathmandu and on trek routes, there are skilled and semi-skilled workers from northern India and Bangladesh doing the same work that Nepalis have gone abroad to do. In some cases, in districts along the <a href="http://archive.nepalitimes.com/blogs/kundadixit/2015/05/27/a-month-that-felt-like-a-year/">2015 earthquake</a> zone, Indian workers earn as much as Nepali carpenters and masons earn in Qatar.In jewelry shops that line Kathmandu’s New Road, very little of the work is done by the local Newar owners, most of it has been passed on to hired Indians. Every time Nepalis get a haircut, there is a fair chance they are sending money to India as out-flowing remittance.Last week during Tihar, like all recent Tihars, the demand for marigold boomed, but there is no one to pluck them and make garlands to sell in the cities. So, we imported the garlands from India instead. In the past ten years Nepal received nearly $40 billion in <a href="http://archive.nepalitimes.com/article/editorial/Nepal-economy-supported-by-remittance-money,2874">remittances from its workers abroad</a>. But Nepal is also the sixth largest source of remittance for India, from its workers in Nepal.With infrastructure reaching saturation, most Gulf countries will now require managers, and service sector workers, and fewer menial workers. <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Korean-kafala-migrants-in-Korea,4025">Korean</a> language institutions are in high demand because many Nepali workers believe that this is a market that will them to move up the social ladder, and hard work really pays. <a href="https://www.nepalitimes.com/banner/migration-certificate/">USA and Australia still draw the young who are strong academically</a> and have families willing to pay for their education.Qatar is asking the Nepal Police to help secure its venues during the upcoming World Cup in 2022. Malaysia wants Nepali workers, and is willing to cover all fees  associated with them under <a href="https://www.nepalitimes.com/latest/nepal-malaysia-labour-pact/">a new G2G deal</a>. The USA diversity visa lottery is attracting hundreds of thousands of Nepali applicants.Soon, there may be more Nepalis working outside Nepal than in Nepal. Terrace farms are lying fallow, or are being farmed by contract labourers from India. There is really no other way but for Nepali farms to mechanise production and consolidate fragmented family plots.There used to be a time when Nepalis performed funeral rites for relatives if they did not come home for the paddy planting season. We may need to revive this tradition to get young Nepalis to come home during Dasain and stay home till the harvest is stored for the winter.One of the reasons why many Nepalis do not face extreme poverty in difficult economic times is because they have the option to go back to subsistence farming. This has been the insurance policy during the <a href="http://archive.nepalitimes.com/article/editorial/autopsy-of-a-blockade%20,2863">Indian Blockade</a>, and the demonetisation of the INR which hit poor Nepali workers hardest by destroying their savings.Nepal’s main imports include machinery, <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/">fossil fuel</a> and raw materials for processed goods for export. No one keeps count of how much money goes out in haircuts, farm contract labourers, and construction workers from India in hydropower, and rebuilding of earthquake-damaged houses. Many CEOs and senior managers in Kathmandu are foreigners, probably because there are no Nepalis left who can do the job.Nepalis are said to work hard, but only when they are outside Nepal. At home, manual work is regarded as shameful. The jagir culture thrives because salaried government jobs demand little, but assure a pension for life. You see young men playing cards or carom but not helping in the farm. Success in Nepal means not having to work.But things are changing. Nepali youth today run many businesses that require manual labor and good academic qualifications. From vegetable farming to animation studios, from raising rainbow trout to meat processing, Nepalis are launching businesses closer to home.Nepal is now exporting more IT products than money earned from tourism. Families and communities need to respect those who refuse to go abroad and seek work within Nepal. We are proud people, sometimes too proud to work and get our hands dirty. We need more of us to do manual work and tell the world proudly of what we do.Upward mobility in Nepal should not mean not having to do any work.Anil Chitrakar is President of Siddharthinc

Anil Chitrakar

Success in Nepal means not having to work

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/6369214b9c7e80680e03a0c1jpeg.jpg" alt="" width="640" height="581"/><figcaption>TWITTER</figcaption></figure>There is growing public outrage about the <a href="https://www.nepalitimes.com/banner/four-fold-increase-in-reported-rape-in-10-years/" target="_blank" rel="noopener">recent rise in reported rape cases across the country</a>. The victims of these appalling crimes can be the elderly or babies, and the daily headlines numb us with their cruelty.What is even more shocking is that these are just what is reported to the police, <a href="https://www.nepalitimes.com/banner/justice-for-sale/" target="_blank" rel="noopener">there are many times more which we will never know about</a>: physical abuse, mental torture, threats, molestation, harrassment in the workplace, incest.Women have to bear the insults silently: being told they are dumb, stupid, good for nothing. But rage against rape has exploded on social media. The most important change that is needed is in the mindset of Nepal’s men, who use arguments like nationalism and social harmony to perpetuate patriarchy.Read also: <a href="https://www.nepalitimes.com/banner/nepals-suffragette-moment/" target="_blank" rel="noopener">Nepal's suffragette moment</a>, Om Astha RaiRecently, a photograph on social media showed an activist who had pinned a slogan on her back that read in Nepali: ‘Our father is the rapist of our mother’. It was intended to highlight the plight of <a href="http://archive.nepalitimes.com/regular-columns/Between-the-lines/citizenship-clause-should-be-national-issue-not-just-gender-issue,517" target="_blank" rel="noopener">single mothers trying to get citizenship for their children</a>.That is when the trolling began. The pundits were outraged that women were so outspoken, and the backlash was unrelenting. Women activists were at the receiving end of vitriolic comments accusing them of being “dollarbadi” and trying to turn Nepal into Fiji. That particular accusation has to do with the <a href="https://www.nepalitimes.com/banner/nepals-suffragette-moment/" target="_blank" rel="noopener">xenophobic paranoia</a> that Indian men are lining up to marry Nepali women so they can gain Nepali citizenship.Read also: <a href="https://www.nepalitimes.com/editorial/stateswomanship/" target="_blank" rel="noopener">Statewomanship</a>, Editorial<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/6369214d9c7e80680e03a0c2jpeg.jpg" alt="" width="650" height="433"><figcaption> </figcaption></figure>My own support for the defence of <a href="http://archive.nepalitimes.com/regular-columns/Comment/stateless-daughters-in-nepal,863" target="_blank" rel="noopener">women’s rights and citizenship through the mother</a> has been greeted with widespread personal attacks. This virtual abuse in cyberspace is an extension of the physical and verbal abuse that Nepali women face every day. The attackers do not even need to hide behind an anonymous account, they are brazen and open — as if misogyny is socially sanctioned and is nothing to be ashamed about.Women can be crushed, smashed and ripped off their dignity, rights and independence without any repercussions to the perpetrators. To survive in this society women either become submissive, and learn not to rock the boat. Or, they fight back.If a wife is facing abuse from in-laws, she is blamed for the trouble. Even if she is married by the choice of her parents, and the in-laws and husband treat her badly, there is no support from her own parents who fear the social stigma.When <a href="http://archive.nepalitimes.com/regular-columns/Comment/stateless-daughters-citizenship-through-mothers,859" target="_blank" rel="noopener">I made a birth registration for my daughters</a> after supreme court's verdict, Ward secretary filled our ‘Daughter of’ with 'Mr Thegan Nabhaeko’ (Unknown father). I asked why <a href="http://archive.nepalitimes.com/article/nation/citizenship-in-the-name-of-the-mother,2076" target="_blank" rel="noopener">I couldn’t put my father's name as my daughter's grandfather</a> and I was told that officially grandfathers can only be from the father's side, and have no connection with the mother’s parents.I have seen a son's endorsement for his mother to acquire a citizenship at the age of 60 to be very easy — in order that the sons could enjoy the elderly pension from their mother. However another 60-year-old mother was denied citizenship for her grown up, educated and able sons after her husband committed suicide. She was mocked by the CDO, calling her Mother Mary who could give birth without a father, and humiliated.The recent revisions in the Muluki Ain state that to acquire citizenship through the mother, she has to present detailed information about why it cannot be through the  father, and for her explain<a href="https://www.nepalitimes.com/editorial/stateswomanship/" target="_blank" rel="noopener"> why she does not know who the father is</a>. This provision is now being challenged by MP Binda Pandey in Parliament.The argument of last resort about why women should not have the right to confer citizenship to children, usually pertains to national security. If you think it is the open border that allows Indians to swarm across to wed our women, then close the border.Men and women who have married across the border can easily be prevented from getting double citizenship through bilateral negotiations. India can do the same with the people who have citizenship of Nepal. Let us agree to a point where both countries will have equal benefits by sharing a strict rules.It is only when women are treated equally in law and practice that men will think twice about inflicting harm on them.A country where the state itself denies the identity of women makes them vulnerable to abuse and rape. The state's policy has been first seek permission from a male member of the family to find out if a women is eligible for migration. This is not empowering women, it is enslaving them.Read also:<a href="http://archive.nepalitimes.com/regular-columns/Between-the-lines/citizenship-clause-should-be-national-issue-not-just-gender-issue,517" target="_blank" rel="noopener">#Citizenshipthroughmothers</a>, Tsering Dolker Gurung<a href="http://archive.nepalitimes.com/article/nation/The-right%20-to-have-rights,2656" target="_blank" rel="noopener">The right to have rights</a>, Sangita Thebe-LimbuOUTRAGE OVER OUTRAGEA selection of Twitter posts from the debate generated by the image of an activist carrying the slogan: 'My mother's rapist was my father' at a demonstration against the Citizenship Bill that was criticised for being discriminatory towards women. Many activists started adding 'Dosro Darja' (second Class) to their Twitter handles:<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/636921509c7e80680e03a0c3jpeg.jpg" alt="" width="640" height="459"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/636921529c7e80680e03a0c4jpeg.jpg" alt="" width="640" height="252"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/636921549c7e80680e03a0c5jpeg.jpg" alt="" width="640" height="126"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107161116/636921569c7e80680e03a0c6jpeg.jpg" alt="" width="640" height="195">

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Perpetuating patriarchy in Nepal

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

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

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

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>.