Lovers of all things pizza must have tried Kathmandu’s very own <a href="https://www.fireandicepizzeria.com">Fire and Ice Pizzeria</a> at least once. They will, now that the restaurant was featured recently in The New York Times’ <a href="https://www.nytimes.com/2024/07/05/dining/readers-favorite-pizza.html">15 of Our Readers’ Favourite Pizza Places Around the World</a>. It’s their Pepperoni and Mozzarella pizzas that made the cut. A comment in NYT reads: ‘Italian pizza by Italian owner using local ingredients in just about the last place you’d imagine. An expat’s treasure.’ Fire and Ice founder and long-time Kathmandu resident <a href="https://nepalitimes.com/here-now/napoli-nepali">Annamaria Forgione</a> disagrees: “It is not just expats. Fire and Ice is what it is today because of our Nepali guests. And tourists are here only for two weeks.”&nbsp; Forgione came to Nepal from Napoli via Venezuela and Britain, and her popular pizzeria has been at the same spot in Thamel for three decades. Nepali five-year-olds who used to accompany their parents to the pizzeria in the 1990s now come with their own children. Loyal customers say the quality and taste of the pizzas have remained consistent for 30 years in the original Thamel spot and at new outlets in Sanepa, Kolkata and Colombo.&nbsp; Read also: <a href="https://nepalitimes.com/review/nepal-cook-book">Nepal cook book</a>, Kunda Dixit  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241003091048_66cd7cb1dd79042b3c7aef7b3925c585711417be4362f40c185ae9fa789e9920.jpg" data-media-id="editor_4" data-image-id="20241003091048_66cd7cb1dd79042b3c7aef7b3925c585711417be4362f40c185ae9fa789e9920" data-rendition-name="original" width="1000" height="1778" loading="lazy" alt="Fire and Ice NT 2"> </figure>  Forgione says three-fourths of her guests in Thamel and Sanepa are Nepalis, but one recent evening every table was taken up by trekkers devouring slices.&nbsp; There have been celebrity customers: Sheikh Mohammed bin Abdulla Al Thani of Qatar who summited Mt Everest in 2013, Italian climber and helicopter rescue pilot Simone Moro, and Hollywood actor Richard Gere.&nbsp; Even former Crown Prince Dipendra used to walk over from Narayanhiti Palace in the evenings, sit at a corner table, and have his gelato. &nbsp; Forgione’s family is originally from Napoli but migrated to Venezuela when she was young. Her father later took the young Annamaria to her aunt in Milan who ran a hotel and casino. She then worked with the Italian Embassy in London, but soon got bored. Her husband got a job as a teacher in Kathmandu, and asked her to join him. She did not know where Kathmandu was.&nbsp; “I will never forget 16 September 1988, getting off the plane in Kathmandu,” Forgione recalls. “The mountains were all out. I just stood there on the stairs and stared, blocking the other passengers. This country was like heaven, I want that Nepal back.” Read also: <a href="https://nepalitimes.com/review/nepali-vegan">Nepali Vegan</a>, Sahina Shrestha  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241003091048_9e0708966f2fd2ed621b268986652b9aa1e3fd6cbda3f6004dfb73ab3b24a989.jpg" data-media-id="editor_6" data-image-id="20241003091048_9e0708966f2fd2ed621b268986652b9aa1e3fd6cbda3f6004dfb73ab3b24a989" data-rendition-name="original" width="1400" height="930" loading="lazy" alt="Fire and Ice NT 3"> <figcaption>Forgione with the original staff in 1995 in Thamel. </figcaption> </figure>  She started selling Italian tomato sauce at the Summit Hotel Sunday market in Sanepa. That eventually led to Fire and Ice Pizzeria and Ice Cream Parlour where Forgione kneaded the dough for pizzas and worked the Carpigiani herself.&nbsp; Some of the more popular pizzas over the years have been Margarita, Ettore (chicken mushroom topping named after a friend) and the colourfully-anointed Rompipalle (spicy meat sauce).&nbsp; But why are pizzas so popular around the world? “Pizza is such a welcoming, comfort food which you can share and eat in a group,” Forgione explains.&nbsp; Fire and Ice has also been an excellent training ground for Nepali chefs and waiters, many of whom have gone overseas. One chef now earns $1,000 a month in a pizzeria in Saudi Arabia. Forgione’s next project is to open a Fire and Ice outlet in her tiny village in Essex. “My neighbourhood there is quiet, no tall buildings, just people walking their dogs. But it doesn’t have a good pizza place,” she says.&nbsp; And after that? “I can’t see myself not working. Perhaps a Fire and Ice in Pokhara or Khumbu?” &nbsp;&nbsp; Read Also: <a href="https://www.nepalitimes.com/here-now/flavours-from-nepal">Flavours from Nepal</a>, Prashanta Khanal

Sonia Awale

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The pizzaz of Fire and Ice

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a56bc9c7e80680e0547a0jpeg.jpg" alt="" width="1500" height="1125"/><figcaption>Photo: SANGHAMITRA SUBBA</figcaption></figure>Finding pizza in Kathmandu has become almost as easy as ordering momos. From high-end restaurants to corner eateries, pizzas are everywhere.Enter Pizza Inn. With its unnervingly vertical and narrow building in mid-Lainchaur, this place is in a league of its own. The menu has vegetarian or non-vegetarian, regular or thin, wheat or even heart-shaped crust. The Meat Lover’s Pizza on a cracker-thin crust is ideal for the carnivores among us who like a generous helping of salami and ham but prefer to lay off bready crusts. But if you are not a meaty person, the Popeye, Chicken Hawaiian and Heat Wave are just as good.Beyond the pizzas, the restaurant offers cheesy garlic bread, chicken wings and pastas, staying true to the American-style pizza experience. Co-owner and chef Satya Deep KC worked at Papa Johns in the UK and wanted to transplant that sort of casual pizza experience to Nepal.KC makes everything in house, from the sauces to the dough, using fresh produce and a mixture of cheeses to create the pull. And you do not have to worry about the food not being fresh because everything is consumed the day it is made.KC created Pizza Inn with Abhishek Agarwal, both pizza lovers. “We wanted a different pizza place in Kathmandu that was affordable, accessible and of course, delicious,” says Agarwal. Appetizers start at Rs220 and the most expensive pizza is only Rs700.Chicken fingers with house-made hot sauce is a yummy starter – strips of chicken are covered in breading, deep-fried and coated with a mixture of savoury spices. Dipped into the spicy and tangy hot sauce, the two hit almost every flavour note.While pairing a cup of hot vanilla and blueberry tea with a thin-crust pizza may sound strange, the combination goes surprisingly well, and makes you feel healthier.Pizza Inn sports a distinct design, with the building divided into three differently decorated floors. The ground floor has an open eating area and multi-coloured walls decorated with drawings of pizzas. The first floor, on the other hand, is a sports watchers’ oasis, well-equipped with comfy couches, huge flat screen tvs and photos paying homage to both Nepali and foreign athletes.“As a huge sports fan, I wanted to create a space in the restaurant to allow other sports fans to gather and watch matches together with good food,” says Agarwal. During the US Open or European football matches, the floor is filled with cheering fans.The rooftop seating area is at canopy level with nearby trees, and isolated from the noise below. By 6pm the terrace is abuzz with birds, mainly parrots, flitting from tree to tree. But you will not forget that you are here mainly for the pizza.

The Pizza Inn

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b1e9c7e80680e045958jpeg.jpg" alt="" width="1400" height="930"/><figcaption>GRAZIE: Annamaria Forgione (far left) with her staff when Fire and Ice first opened in 1995 in Thamel, and this week serving the popular Pizza Margherita at her restaurant that will soon mark its 25th anniversary.</figcaption></figure>Ever since her father emigrated from Italy to Venezuela, and later living in London, Annamaria Forgione (pictured below) had always yearned to belong to some place she could really call home. Now, at 68, the founder of Fire and Ice Pizzeria in <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/thamel-tales-review,3661" target="_blank" rel="noopener">Thamel</a> has decided that she belongs more to Nepal than Naples.This week, as the Nepal Investment Summit gets underway, it may be a good time to remember one of the first investors in Nepal’s hospitality sector after the Foreign Investment Act was passed in 1992. Fire and Ice will soon mark 25 years in Kathmandu, and is a model business that has stuck with Nepal through thick and thin.“As an immigrant child, I missed the sense of home, but it gives me great happiness to know that I belong to Nepal,” says Forgione, raising her voice to be heard above the background noise of her busy Kathmandu pizzeria one recent evening.Forgione was working at the Italian Embassy in London when she fell ill and became wheelchair-bound for more than a year. Her British husband, a teacher, started looking for a job so she could have a change of scenery to recover, and fortuitously landed a job at Lincoln School in Kathmandu.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811118/636a2b219c7e80680e045959jpeg.jpg" alt="" width="800" height="1161"><figcaption> </figcaption></figure>“It was an act of god that I came to Kathmandu,” says Foregione, smiling. “Otherwise, who knows, Fire and Ice may have opened up in Ulan Bataar.”It was her obsession with cleanliness that made Forgione plan “a clean, simple place with no pretences”, where people in Kathmandu could eat without falling sick. She even put a microscope in the kitchen to show waiters the germs lurking about if they did not wash their hands.Read also: <a href="https://www.nepalitimes.com/here-now/northeast-indian-cuisine-is-a-hot-new-sensation-in-nepal/" target="_blank" rel="noopener">Northeast Indian cuisine is a hot new sensation in Nepal</a>, Sewa BhattaraiThe timing was perfect. The new business-friendly Foreign Investment Act made it easy to register Fire and Ice, and with the boom in trekking tourism, and growth in Kathmandu’s expat community in the mid-90s, the restaurant immediately took off as a place not just to eat, but to meet and greet.One regular was Crown Prince Dipendra, who came for his favourite salami pizza with his friend Devyani Rana a fortnight before the <a href="https://nepalitimes.atavist.com/three-kings-in-four-days-nepal-massacre" target="_blank" rel="noopener">massacre</a> at the nearby royal palace in June 2001. There have been many celebrity visitors since, including Sting, Richard Gere and Bollywood stars.Nepal has now moved on from monarchy to republic, from war to peace, and survived many political upheavals, but Fire and Ice is exactly where it was on Tridevi Marg next to the three temples dedicated to the goddesses, Dakshinkali, Manakamana and Jawalamai. Kathmandu-based expats return to Fire and Ice when they visit Nepal just to relive the time they were here.“Some young men come and hug me and say, ‘Annamaria, remember me?’ They were children when they used to come here 20 years ago, and now they are all bearded and grown-up,” Forgione remembers. “They feel the restaurant is a link to their childhood, it is a constant. We need these anchors to give our lives continuity.”Forgione’s main challenge in the past 25 years has been to ensure quality, so she personally supervises the kitchen, training and sourcing ingredients. The other challenges over the years have been dealing with shutdowns and extortion.Despite conflicts, <a href="http://archive.nepalitimes.com/blogs/thebrief/2015/04/25/massive-earthquake-rattles-nepal/" target="_blank" rel="noopener">earthquakes</a> and the <a href="https://archive.nepalitimes.com/regular-columns/As-It-Happens/blockade-that-benefitted-no-one,660" target="_blank" rel="noopener">Blockade</a>, Annamaria Forgione says she has never been fed up with Nepal, and will never leave. She helps Jay Nepal Action Volunteers work with  earthquake survivors, and is full of admiration of the inner strength of Nepalis.“Nepal gives me such happiness, it has been my life,” she adds, “when I go to the Big Pizzeria in the sky, I want to look down and see that this place is still going strong.”

Kunda Dixit

Napoli Nepali

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

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>.

Flouting rules caused Saurya tragedy

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

French citizen Louis arrived in Nepal for the first time earlier this year, planning to <a href="https://nepalitimes.com/banner/the-abcs-of-a-winter-trek-in-nepal">trek the Annapurna Circuit </a>before heading down to Bardia to hopefully catch a glimpse of some<a href="https://nepalitimes.com/news/nepal-counting-its-tigers"> tigers</a>. Before he began his journey from Besisahar, Louis (who only revealed his first name) had imagined breathing crisp mountain air, and following the melodious gurgle of the Marsyangdi.&nbsp; Instead, he had to breathe fumes and dust all the way to Chame. Louis says he masked his face with a handkerchief: “It was not what I expected, this is not right.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a.jpg" data-media-id="editor_2" data-image-id="2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a" data-rendition-name="original" width="2419" height="1814" loading="lazy" alt="Manang trails NT 1"> </figure>  Many other trekkers are similarly disappointed as roads have been built along what used to be <a href="https://nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban">walking trails</a>. Manang and Humla are the last remote regions in the Himalaya to be connected to the national road network. &nbsp;Construction of the 87km Besisahar-Manang road began in 1994, but was stalled during <a href="https://nepalitimes.com/news/14-years-after-conflict-no-closure-in-nepal">the Maoist conflic</a>t, and finally finished in 2012.&nbsp; Most of it has not yet been blacktopped, and sections have been carved out of vertical cliff faces, making them treacherous. But it has allowed road access to Manang, a journey that previously took a week on foot.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000.jpg" data-media-id="editor_5" data-image-id="2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000" data-rendition-name="original" width="2400" height="1505" loading="lazy" alt="Manang trails NT 1"> </figure>  While the <a href="https://nepalitimes.com/opinion/the-road-out-of-nepal">road has improved access</a>, it has impacted on<a href="https://nepalitimes.com/here-now/trekking-in-the-time-of-climate-change"> trekking tourism </a>— the mainstay of Manang’s economy. The number of tourists visiting the scenic valley behind the Annapurnas grew from 21,245 in 2023 to 30,866 in 2024. The Annapurna Circuit is known for unique sights like <a href="https://archive.nepalitimes.com/news.php?id=9194">Tilicho</a>, one of the highest lakes in the world, the Thorong La pass that connects Manang to Mustang, and the valley’s own rich cultural heritage. Thorong La at 5,416m is the highest hiking pass in the world, and was used by locals for trade with Mustang before it became a <a href="https://nepalitimes.com/opinion/comment/lift-restrictions-on-upper-mustang">popular trekking route</a>. &nbsp; “For guests, the excitement of reaching Thorong La is now overshadowed by their disappointment of having to journey through dusty roads to get there,” says Manang lodge-owner Ongma Gurung. “That is the complaint we get the most.” <a href="https://nepalitimes.com/banner/tourism-that-treads-lightly-on-the-land">Local tourism </a>operators are trying to get the government to build alternative foot trails. But there have been delays due to a lack of budget.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa.jpg" data-media-id="editor_11" data-image-id="2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa" data-rendition-name="original" width="2419" height="1762" loading="lazy" alt="Manang trails"> </figure>  The Naso Rural Municipality has identified other routes along the Annapurna Circuit in Chyamche, Tal, and Khotro so trekkers can bypass heavy vehicles involved in the construction of the Manang-Marsyangdi Hydropower Project. “But the local government cannot do everything,” admits the chair Dhan Bahadur Gurung. “And for leaders in Kathmandu, Manang is out of sight and out of mind.” Munindra Jung Gurung represents Manang in the Gandaki Provincial Assembly, and says he has raised the issue in <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">Pokhara</a>. He is hopeful there will be a hearing. To be sure, the road is not all bad news. Locals benefit, the number of visitors has grown, and trekkers can now also save time and use it to explore <a href="https://archive.nepalitimes.com/news.php?id=5960">side valleys in Manang</a>, visiting the villages like Nar and Phu. Annapurna Conservation Area (ACA) chief Rabin Kadariya concedes that the road to Upper Manang was crucial to connect the remote region with the rest of Nepal, but adds: “We have built an alternative trail connecting Talgaun, and we will consult local communities about their priorities on other hiking trails.”&nbsp;