<figure><img width="3071" height="2284" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161128/636d195f9c7e80680e0ac817jpeg.jpg" alt=""/><figcaption>Chanaute after the flood on the Melamchi River in 2021. All photos: RAJU PANDIT CHHETRI</figcaption></figure>On 15 June, the <a href="https://www.nepalitimes.com/latest/monsoon-hits-nepal-with-a-bang/">Melamchi River north of Kathmandu</a> saw a massive flash flood, killing 25 people and sweeping away 200 houses and 360 hectares of farmlands.Another debris flow on the river on 31 July added to the destruction and misery. The disaster was <a href="https://www.nepalitimes.com/latest/the-monsoon-mess-in-melamchi/">unprecedented in the Melamchi Valley</a>, and caught residents, trout farms, shops along the banks by surprise. Before the communities got a chance to fully rise from the massive double-earthquake in 2015, the region was hit yet again with another disaster.As a resident of the Chanaute, I lost close relatives and neighbours to the flood. My own house and farmland were destroyed. The river sliced through the bazar town, and its 56 houses are now ruined and abandoned. The hopes of my hard-working community have also been dashed.Local entrepreneurs, small shop owners and farmers whose arable land have turned into a boulder-strewn wasteland are shattered. Damage to roads and bridges hascut the valley’s connection to the outside world. Nepal’s most expensive water supply project has been damaged. <figure><img width="1024" height="768" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161128/636d19639c7e80680e0ac818jpeg.jpg" alt=""><figcaption> </figcaption></figure>Any individual extreme weather event is difficult to directly attribute to the climate crisis. But the intensity and unpredictability of this year’s monsoon has been unprecedented. Manang and Mustang were hit by flash floods at the same time as Melamchi – even before the monsoon officially started. And even after the rainy season was formally over last week, <a href="https://www.nepalitimes.com/latest/post-monsoon-rain-ruins-nepals-crops/">parts of the country were hit by record-breaking rainfall.</a>For the past decade, my career has taken me to numerous international climate summits where we have discussed strong national and international advocacy to address the impact of the climate crisis – especially on developing countries like Nepal.At international climate negotiations under the United Nations Framework Convention on Climate Change (UNFCCC), I have observed climate-vulnerable countries make urgent pleas for ambitious action in tackling the climate crisis. Small, low-lying island states like the Vanuatu, Tuvalu and the Maldives have tried to show the urgency of it all – rising ocean levels will soon submerge their countries.The Philippines and Bangladesh continue to raise concern about the increasing intensity and frequency of typhoons and cyclones. Fragile mountain regions of the world are trying to get their concerns on the agenda.Next week, heads of state from around the world will start arriving in Glasgow for the 26th annual climate summit of the UNFCCC (called COP26). Recent impacts of extreme weather events around the world (wildfires in Siberia and the western US, heat waves in Canada, floods in Europe, landslides and floods in Japan, India, China) are likely to focus everyone’s mind on the climate emergency, and the message that we are all in this together. <figure><img width="1500" height="1125" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161128/636d19669c7e80680e0ac819jpeg.jpg" alt=""><figcaption> </figcaption></figure>Reducing greenhouse gas emissions and adapting to climate impacts to avert and minimise some of the loss and damage will be at the forefront of the negotiations.  However, as the incoming president of COP26, the United Kingdom and the leaders of the industrialised world will have to face a new reality – to address the destruction unleashed by the climate crisis with rehabilitation, migration and financing.Industrialised countries have long brushed aside these issues, diluted their commitments to merely focusing on the weaker goal of reducing greenhouse gas emission, and providing token climate financing to allow low-income countries to adapt.In fact, addressing the <a href="https://www.nepalitimes.com/banner/disasters-in-nepal-come-in-waves/">loss and damage from disasters</a> like the one that hit Melamchi and parts of the Himalaya will be one of the main pillars of the COP26 in Glasgow. Nepal’s delegation will be led by Prime Minister Sher Bahadur Deuba, and he is expected to speak about this year’s climate-induced disasters starting with <a href="https://www.nepalitimes.com/banner/wildfires-ravage-nepal-mountains/">winter drought</a>, <a href="https://www.nepalitimes.com/banner/nepal-is-going-up-in-smoke/">nationwide wildfires</a>, and floods.Nepal will have strong moral grounds to persuade world leaders that low capacity vulnerable countries need help to deal with a crisis that is not of our making. Himalayan glaciers are shrinking and receding fast, extreme weather trends are more pronounced, and this is impacting on infrastructure projects and threaten to undermine decades of progress in achieving the UN’s Sustainable Development Goals. <figure><img width="4000" height="3000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161128/636d19699c7e80680e0ac81ajpeg.jpg" alt=""><figcaption> </figcaption></figure><a href="https://www.nepalitimes.com/here-now/nepals-glacial-lakes-in-danger-of-bursting/">A 2020 study by ICIMOD and UNDP</a> has shown that 47 glacial lakes in the Kosi, Gandaki and Karnali basins are in danger of bursting. Although 21 of these lakes are in Nepal, the others also drain into tributaries of rivers flowing into Nepal. These are ticking time bombs.<a href="https://www.nepalitimes.com/banner/climate-change-is-a-disaster-in-the-nepal-himalaya/">Glacial lake outburst floods</a> have been hitting Nepal’s Himalayan valleys with increasing frequency. In 2012, an <a href="http://archive.nepalitimes.com/article/nation/Anatom-of-a-Himalayan-tsunami,1330">avalanche on Annapurna</a> unleashed a catastrophic flood on the Seti River that killed at least 70 people. In <a href="http://archive.nepalitimes.com/blogs/kundadixit/2014/10/16/after-the-storm/">2014, a deadly post-monsoon blizzard</a> spawned by Cyclone Hudhud swept through the mountains catching many trekkers unawares. The Tarai have seen increasingly destructive floods in the past five years, and <a href="https://www.nepalitimes.com/banner/disastrous-management-in-nepal/">Bara district was hit by a rare tornado in 2019</a> that killed dozens.In Glasgow, Nepal will have to make a compelling case for <a href="https://www.nepalitimes.com/banner/himalayan-floods-a-sign-of-worse-to-come/">loss and damage compensation</a> for disasters like these. COP26 will be a make-or-break summit for reducing global carbon emissions by 45% by 2030. Nepal will also need to do its bit to achieve its updated Nationally Determined Contribution target to reduce emissions by 2030 by switching to renewable energy, and attain net zero by 2050.Glasgow will be an opportunity to link global targets to local impact, and to find ways to address the disproportionate destruction caused by climate crisis on the poorer parts of the poorest countries.Raju Pandit Chhetri is a resident of Chanaute in Nepal’s Melamchi Valley and works on climate change issues.

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

Think globally in Glasgow, and act locally

<figure><img width="960" height="640" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141152/636d02999c7e80680e0a368cjpeg.jpg" alt=""/><figcaption>Photo: AMIT MACHAMASI</figcaption></figure>On 9 September, while a US delegation was landing at Kathmandu airport on a four-day visit, Madhav Kumar Nepal, Pushpa Kamal Dahal and Narayan Kaji Shrestha got together at the residence of Upendra Yadav for an important meeting.The Nepali Congress, which leads a five-party coalition government, was not invited to the discussion between its own partners.The meeting was to discuss a common posture of the coalition members towards a<a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer"> $500 million US grant</a> under the Millennium Challenge Corporation (MCC) to upgrade Nepal’s electricity transmission lines and highways.Cross-party support for the much-needed infrastructure project should have been a no-brainer, but MCC ratification has become such a political hot potato that it <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatens Prime Minister Sher Bahadur Deuba’s ruling alliance</a>, two months into his fifth term in office.Deuba’s current coalition made up of Dahal’s Maoist Centre, Nepal’s breakaway CPN (Unified Socialist), and the Rastriya Janamorcha parties are opposed to the project. In fact, Rastriya Janamorcha even staged a street protest on 7 September, two days before MCC vice president Sumar landed in Kathmandu.Deuba’s NC has been in favour of ratifying the MCC in parliament since his Nepali Congress-Maoist coalition government signed the agreement in 2017 during his fourth term as prime minister. In fact, Deuba’s political rival KP Oli backed the MCC after he succeeded Deuba in 2018. <figure><img width="1131" height="1455" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141152/636d029c9c7e80680e0a368djpeg.jpg" alt=""><figcaption>MCC vice-president Fatema Z Sumar with Prime Minister Sher Bahadur Deuba.</figcaption></figure>Baburam Bhattarai was Prime Minister in 2012 when Nepal was selected for the MCC threshold program. Bhattarai is now with another coalition partner, the Janata Samajbadi Party, but while he has been speaking publicly in support of MCC, his colleague Yadav is hedging his bets. Hence his inclusion in the meeting with Dahal and Nepal on 9 September. Ironically, a bilateral negotiating team was formed for the MCC Compact during Pushpa Kamal Dahal’s stint as Prime Minister in 2017. Dahal later changed his stance and joined up with dissidents from Oli’s own UML, who considered the project as being ‘anti-national’, to ultimately <a href="https://www.nepalitimes.com/banner/own-goal/" target="_blank" rel="noopener noreferrer">remove him from power</a> in July. As internal disputes within the erstwhile NCP escalated, a task force including Bhim Rawal, Jhala Nath Khanal, and then foreign minister Pradeep Gyawali suggested that the MCC could be ratified, but after amendments. Had the process not been deadlocked by the <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">feud between Oli and Dahal</a>,  it could easily have been endorsed by Parliament then.Differing views within the ruling coalition towards the United States, as well as individual and party relationships with neighbouring India and China, have stopped the project from moving forward as it nears a deadline for acceptance.“Nepal’s political leadership has failed to recognise the difference between ultranationalism and patriotism,” says Khadga KC, a professor at the Department of International Relations and Diplomacy at Tribhuvan University. “Geopolitics has now permeated right down the political chain of command of the parties that seek to use the clash between an imperialist America and an expansionist China on the one hand and between China and India on the other.”Deuba has lately been seen to be a bit too eager to please New Delhi by not raising the issue of a Nepali man who was killed while trying to cross a wire bridge across the Mahakali river into India, as well as resurrect an already settled border dispute with China in Humla.  <figure><img width="1800" height="850" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141152/636d02a09c7e80680e0a368ejpeg.jpg" alt=""><figcaption>Nepali Congress leader Jeevan Bahadur Shahi's team with security personnel during an inspection of the Nepal-China border in Humla. Photo: JANAK SHAHI</figcaption></figure>In response, the All Nepal National Free Students Union (ANNFSU) associated with the CPN (Unified Socialist) and the Maoist Center held anti-India street protests. The significance of the ‘student’ wings of parties in the ruling coalition <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" target="_blank" rel="noopener noreferrer">protesting the policy of the prime minister</a> was not lost on anyone. If Deuba was hoping for New Delhi’s support for the MCC, that has not been forthcoming. The project’s power lines would increase the capacity of future export of surplus electricity to India. In fact, most analysts see China’s hand in behind the scenes lobbying against the MCC they regard as America’s response to <a href="https://www.nepalitimes.com/latest/bri-and-trans-himalayan-connectivity/" target="_blank" rel="noopener noreferrer">Beijing's Belt Road Initiative (BRI)</a>. The <a href="https://www.nepalitimes.com/here-now/afghanistan-abandoned/" target="_blank" rel="noopener noreferrer">fall out of the US defeat in Afghanistan</a>, its growing tension with China with last week’s strategic AUKUS pact with Australia and Britain in the Indo-Pacific, and Beijing growing global clout have undermined the prospect of the MCC going ahead in Nepal. Diplomatic experts see an attempt by Deuba to use the China border issue and the formation of an investigative committee to ingratiate himself with India so it will openly support the US project. Nepal signed a framework agreement on the BRI in 2017 after the Indian Blockade of 2015 prompted Kathmandu to plan alternative trans-Himalayan trade routes. Critics of the agreement interpreted this as Beijing’s increased influence in Nepal. “Deuba is trying to counter the narrative that Nepal is cosying up to Beijing and the BRI so as to assuage New Delhi,” says Professor KC. In November 2019, India issued a political map that included disputed border areas of Kalapani and Limpiyadhura. In response, Prime Minister Oli got Parliament to <a href="https://www.nepalitimes.com/latest/nepal-passes-map-bill-india-reacts/" target="_blank" rel="noopener noreferrer">unanimously pass an amendment bill</a> to include the territory in its national emblems and its own political map, much to New Delhi’s chagrin. And while the border issue with China is gaining traction, Professor KC says that the Nepal Congress has failed to offer any criticism to India regarding Limpiyadhura as well as the 2015 blockade. Says Professor KC: “Nepal’s diplomatic relations have unnecessarily jeopardised due to the selfishness and immaturity of the political leadership. Nepal must restore the strategic balance in its stance towards the triangular rivalry between China, India and the US.” Experts say that Nepal has not been able to come up with a coherent response to this changed geostrategic terrain globally and in the region, and its leaders react in an ad hoc manner, allowing a <a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/" target="_blank" rel="noopener noreferrer">development grant like the MCC</a> to become a pingpong in domestic politics.  Former Foreign Minister Ramesh Nath Pandey says that Nepal should have a consistent and common foreign policy messaging on matters like the MCC, even though there might be internal disputes. “Nepal’s foreign policy is not fixed and keeps changing as the government changes hands,” says Pandey. “In fact, not only does our foreign policy change based on the political party in power, every political leader seems to want to dictate the country’s foreign policy.” Former Ambassador Dinesh Bhattarai believes that while the NC’s foreign policy has been fairly consistent from the beginning, Nepal's diplomatic relations especially with its neighbours have been affected by other parties using geopolitics for their domestic power struggles. “When parties which are part of a coalition government themselves take to the streets in protest, it affects our international diplomacy and credibility negatively,” says Bhattarai. He says Nepal's international credibility will hit rock bottom if the MCC Compact is not ratified: “It will mark a strategic shift in our relationship with the United States, and affect our relationship with the World Bank, the International Monetary Fund and the Asian Development Bank.”  (Translated by Shristi Karki from the Nepali <a href="https://www.himalkhabar.com/news/125877">original</a> in the September-October issue of Himal Khabarpatrika.)

Nepal stuck between rock and hard place

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141136/636cfe6b9c7e80680e0a0c3ajpeg.jpg" alt="" width="1260" height="686"/>Prime Minister Sher Bahadur Deuba took office over a month ago, but aside from six ministers he has not been able to set up a full Cabinet yet because of the need to balance the demands of coalition partners.This is despite the need to have all hands on deck to tackle the health and economic emergency caused by the Covid-19 crisis. The delay cannot just be attributed to the recently registered CPN (United Socialist) led by Madhav Kumar Nepal whose critical dissident votes forced the K P Oli government to step down in July and paved the way for Deuba to become prime minister for the fifth time.It appears that the delay has more to do with the competing g demands within other members of the five-party alliance, including Deuba’s own Nepali Congress, the Maoist Centre and the Janata Samajbadi Party (JSP).Both Prime Minister Deuba and CPN (Maoist Center) Chairman Pushpa Kamal Dahal had claimed that the Cabinet would be expanded as soon as CPN-UML’s senior leader Madhav Kumar Nepal’s new party (United Socialist) was officially registered. Yet, even after being recognised by the Election Commission on August 25, Cabinet expansion has not happened.Deuba has not been able to decide the next ministers from his own party, and because of the upcoming party general convention he wants to reward loyalists. So far he has appointed his trusted aides Bal Krishna Khand as Home Minister, Gyanendra Bahadur Karki as Minister for Law, Justice and Parliamentary Affairs, and Umesh Shrestha as Minister of State for Health.Deuba has announced his own candidacy for NC resident in the party’s next general convention which is scheduled for November. Deuba may be trying to decide on distributing ministerial portfolios to either reward loyal party members or buy the loyalty of dissidents.So far, Deuba wants to appoint only those who have expressed their support for his re-election with ministerships. But he may find that he will have to compromise and take in key figures from the Bimalendra Nidhi and Ram Chandra Poudel factions so they will vote for his party presidency.Another reason for the delay comes from the Maoist Center. Currently, former guerrilla commander Janardan Sharma has been appointed Finance Minister and Pampha Bhusal has been made the Energy, Water Resources, and Irrigation minister. Both are close to party president Pushpa Kamal Dahal.Dahal himself publicly admitted last month that he was finding it difficult to select from his 49 Maoist MPs aspirants for ministerships. He said: “At most, we will be given only 7 portfolios. It has now become common practice to criticise the party if one is not made minister. I am under immense stress from all the demands. I wish I was able to make all 49 members ministers.”Within the Maoist Centre, voices have been raised that leaders from the Ekta Kendra and the CPN (United Socialist), who have been with the Maoists since the war and integrated with the Maoists after the peace process, should be included in the government.Even the JSP has split, and not been able to finalise the names of those who will join the government. Unable to strike a Mountain-Tarai balance, the Rastriya Janata Party led by Mahanta Thakur has been unable to finalise names either. The other member of the alliance, Rastriya Janamorcha, which has only one MP in Parliament has already announced that it will not participate in the government.Deuba has not forgotten the role Madhav Nepal’s CPN (United played in getting him to office and apparently wants to reward it with 5-7 portfolios. And it could be that Nepal will also need time to decide on a list of ministers to give Deuba.  Translated by Aryan Sitaula from the Nepali language original in Himal Khabar: <a href="https://www.himalkhabar.com/news/125640" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.himalkhabar.com/news/125640&amp;source=gmail&amp;ust=1630376494617000&amp;usg=AFQjCNHzH53P7H76MS467An-uvZMV9i_UQ">https://www.himalkhabar.com/news/125640</a>

What is delaying Nepal cabinet expansion?

<figure><img width="640" height="769" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141128/636cfc929c7e80680e0a0b97jpeg.jpg" alt=""/><figcaption>Illustration: SUBASH RAI</figcaption></figure>At first glance it may look like the infighting within Nepal’s main political parties are internal matters, but the lack of a national purpose is adding to the people’s hardships at a time of national crisis. 
It was because of <a href="https://www.nepalitimes.com/editorial/k-p-oli-rams-it-home/">leadership clashes</a> that the NCP split vertically down the middle into the ominous sounding Unified Marxist-Leninists (UML) and the Maoist Centre (MC). The emasculated MC is now in dalliance with former sworn enemies, and the UML is not just in the opposition but is itself far from unified.
Former prime minister K P Oil has sidelined Madhav Kumar Nepal, and it now looks like not even a miracle will save the party. Nepal is now setting up a parallel party with its own cadre base.
The Janata Samajbadi Party (JSP) is split in two. Technically, Mahanta Thakur and Rajendra Mahato may still be in the party, but they have been evicted from the Central Committee, sacked from the leadership, and along with 16 others are demoted to ordinary membership.
The Nepali Congress (NC) had greatness thrust upon it when Sher Bahadur Deuba became ‘<a href="https://www.nepalitimes.com/here-now/nepals-accidental-prime-minister/" target="_blank" rel="noopener noreferrer">accidental prime minister</a>’ last month. But his feud with Ram Chandra Poudel goes back at least two decades. The Koirala clan could still have some heft within the party if only the family could speak in one voice.
NC infighting has prevented the party from conducting its 14th general assembly, which raises questions about internal democracy. The NC is not on the verge of a split like the UML or the JSP, but it is getting there.
Till press time on Thursday, Prime Minister Deuba <a href="https://www.nepalitimes.com/latest/nepal-has-no-health-minister-as-covid-19-cases-rise-again/" target="_blank" rel="noopener noreferrer">has not been able to expand his Cabinet</a> beyond the three ministers he currently has. This is for no other reason than the need to offer lollipops to his own colleagues, reward the Maoists for carrying him on their shoulders, give the JSP its pound of flesh, and find a place for the pro-Nepal UML dissidents who cast the decisive vote. 
All this is nothing new. Ever since the restoration of multiparty democracy in 1990, Nepal’s personality-driven politics has split because of personality clashes. The need to buy loyalty to divide and rule, or to keep parties together, contributed to the rot.
Successive elected governments have failed to deliver despite enormous mandates, and the same feckless faces have populated the political stage for the past two decades. This is the <a href="https://www.nepalitimes.com/latest/deubas-long-and-winding-road/" target="_blank" rel="noopener noreferrer">fifth time Deuba is prime minister</a> — that says it all.
Nepalis have long given up expecting anything good to come out of Singha Darbar. Except for party cadres, the ordinary citizen is least bothered about who said, or did, what to whom today.
However, such toxic and perpetual discord does not just hurt the parties, but keeps the country down, its self-esteem, governance, service delivery, long-term planning, crisis and disaster management.
It was K P Oli’s <a href="https://www.nepalitimes.com/here-now/making-up-is-hard-to-do/" target="_blank" rel="noopener noreferrer">inability to appease Dahal and Nepal</a> that drove the NCP and later the UML to a dead end. The winner takes all zero-sum game held the country hostage for three full years. 
Oli considered himself duly elected party chair and prime minister, and saw no reason why he had to give up either just because his rivals found him “autocratic”. But it was Oli’s failure as a supposedly astute politician to propitiate them.
Oli’s advisers now tell us that they were able to work properly for only half the time he was in power, the rest of the time was wasted on dealing with the political fallout of the power struggle at the top. As the pandemic spread, the rival factions spent millions on staging rented rallies as shows of force.
The instability allowed outside powers, and especially Nepal’s neighbours, to <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/">meddle in</a> Nepal’s domestic politics. Those opposed to the <a href="https://www.nepalitimes.com/editorial/a-yam-between-two-indias/">hammer and sickle flag waving</a> over Nepal appeared to be most active behind the scenes.
Meanwhile, the government forgot all about the <a href="https://www.nepalitimes.com/here-now/nepal-ruling-party-feud-affecting-covid-19-response/" target="_blank" rel="noopener noreferrer">people reeling under a health and economic emergency</a><a href="https://www.nepalitimes.com/here-now/nepal-ruling-party-feud-affecting-covid-19-response/">.</a> No one expected much from the five-party coalition in government, and no one is surprised that we do not even have a fully functional government yet.
The five parties did manage to agree on a Common Minimum Program, which was just that: the bare minimum. Deuba and Dahal have so many mouths to feed within their parties that they haven’t been able to agree on ministerial portfolios. They are also waiting for Nepal to finally and formally leave the UML so his loyalists can also be offered positions in government. 
Not even the rise of the <a href="https://www.nepalitimes.com/editorial/nepal-party-reincarnating-hindu-monarchy/" target="_blank" rel="noopener noreferrer">Hindu right, monarchists</a>, or the call to scrap federalism and secularism has united Nepal’s politicians.

They fail, we fall

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

Global warning bell in Belém

Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday, protesting what they have called the interim government’s inadequate efforts to address the demands of the GenZ movements. The demonstrators also sought to bar the UML from gathering at Maitighar, where party chair K P Oli was expected to announce its Youth Volunteer Force on Friday. The organisers consequently relocated the event. Friday’s demonstration at Maitighar comes as UML and GenZ representatives agreed to sit down for talks in Simara, where a curfew was imposed this week after youth protestors and party cadres clashed near the airport as demonstrators sought to stop UML leaders from flying in for a political event to Simara from Kathmandu.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5.png" data-media-id="editor_0" data-image-id="20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5" data-rendition-name="original" width="2160" height="1440" loading="lazy" alt="GenZ Maitighar"> <figcaption>Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday. Photos: SUBASH SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7.png" data-media-id="editor_1" data-image-id="20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7" data-rendition-name="original" width="2160" height="1439" loading="lazy" alt="GenZ Maitighar"> </figure>  &nbsp;Nepal’s interim government is increasingly cautious about the nation’s sensitive security situation in the lead-up to the 5 March election, as evidenced by pro-monarchy businessman Durga Prasai’s midnight arrest earlier this week over his inflammatory remarks as he called for protests this month. On Thursday, the Supreme Court ordered the government to present Prasai before the court within 24 hours.&nbsp; As it stands, the UML’s inauguration of a youth collective amidst its disregard for the demands of Nepalis for party reforms and a change in leadership highlights party chair and former PM K P Oli’s continued lack of remorse for the excesses of 8 September.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9.png" data-media-id="editor_2" data-image-id="20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9" data-rendition-name="original" width="2560" height="1707" loading="lazy" alt="UML Youth Volunteer Force NT"> <figcaption>The UML launched its Youth Volunteer Force on Friday. Photos: SUMAN NEPALI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad.png" data-media-id="editor_3" data-image-id="20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad" data-rendition-name="original" width="2560" height="1706" loading="lazy" alt="UML Youth Volunteer Force"> </figure>  Families of those killed and injured on 8 September have demanded that the ousted PM and home minister be held accountable for state brutality.&nbsp; This week, Human Rights Watch published a <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">comprehensive report</a> concluding that security forces fired indiscriminately on youth-led protestors on 8 September.&nbsp; The human rights watchdog urged the Sushila Karki-led interim government to investigate the excessive use of force as well as arson, vandalism and mob attacks on individuals on 9 September. The government has created a judicial commission to inquire into the deaths of 76 people over two days of protests.&nbsp; “The recent violence in Nepal included serious human rights violations, and those responsible should be held accountable, whether they are security forces or political actors,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch.&nbsp; She added: “The government should ensure that the investigations are independent, time-bound, and transparent, and that no one found responsible for breaking the law is unfairly protected from proper prosecution.” HRW’s investigation was based on testimony from 52 witnesses, victims, journalists, healthcare workers, politicians, and sources close to security forces. Researchers also verified photos and video footage shared on social media and with researchers; and visited the scenes of protests, properties subjected to arson and vandalism, and hospitals.&nbsp; A police officer said that officers opened fire with lethal force five minutes after the District Administration Office declared an emergency curfew around Parliament. Witness accounts and analysed footage did not show grave and imminent danger to life that would justify the intentional use of lethal force, stated the human rights watchdog in the report.&nbsp; The protestors and witnesses identified security forces who fired live ammunition at the protestors by their uniforms as members of the Armed Police Force (APF) and Nepal Police’s Special Task Force (STF). &nbsp; “They literally aimed at us and started shooting,” said one witness who sheltered behind a barricade as police continued shooting.&nbsp; A retired senior police official said police had failed to follow procedures for dispersing protests and using lethal force.&nbsp; Pathologists at a Kathmandu morgue told HRW that they determined 35 cases of death caused by “high velocity gunshot wounds” to the head, neck, chest, or abdomen.&nbsp; The witness recounted being taken into custody along with 33 other protestors by STF officers in riot gear, and said that police police personnel beat him with batons. Detainees were threatened and their IDs destroyed. Several witnesses said that the mob attacks on businesses, politicians, media companies, and educational institutions were very targeted, noting the absence of security personnel on 9 September as arson and violence raged across the capital.&nbsp; Some suggested that the violence may have been instigated by infiltrators associated with various political movements.&nbsp; On Discord, the platform where a significant number of demonstrators organised, participants noted that while there were calls for peaceful movement in the days leading up to the protest, some on the platform advocated for violence.&nbsp; Human Rights Watch has said that any credible allegations of criminal acts contributing to the violence must be investigated.&nbsp; Said Ganguly: “The authorities should recognise that widespread impunity for human rights violations in the past helped enable the violence that occurred this time in Nepal. It is crucial to reverse the decades-long tendency by successive governments in Nepal to bury investigations and stall prosecutions, and to bring about accountability and security sector reform.”

Security forces targeted protestors disproportionately: HRW

As people move out of Nepal’s trans-Himalayan districts, their faiths migrate with them to the cities and all over the world. The ancient animist faith of Bon Po predates the advent of Buddhism in Tibet, and its last remaining priests and devotees are found in villages like Lubra in Mustang and Samling in Dolpo. But as those villages empty out, Bon centres can now be found as far afield as Kathmandu, New York and Tokyo. The first Triten Norbutse Monastery was founded in Tibet in the 14th century by the Bon Master Shen Nyima Gyaltsen. Its monastery in Nepal is below the forested hills of Ichangu on the western outskirts of Kathmandu.&nbsp; Many are surprised to hear that there is a Bon centre in Kathmandu, and that it is located so close to Swayambhu. This Triten monastery was established by Yongzin Tenzin Namdak Rinpoche only 40 years ago to cater to adherents of the faith who lived in the capital. True to its reverence for nature, the shrine is verdant, with plants and flowers amidst a contrasting backdrop of Kathmandu’s ugly urban sprawl below. The monastery practices Bon culture and passes on teachings to students as well, who after completing 15 years of study graduate to become ‘Gese’.&nbsp; It is believed that Bon Po was brought to Nepal from Tibet by Tonpa Shenrab Miwoche. Over the centuries, Bon and Buddhism have become syncretic in Dolpo and Mustang, despite the differences in their belief systems. Followers worship nature and consider the human body, speech and mind as jewels. The human body is said to be composed of five elements: earth, water, fire, air, and the cosmos.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5.jpg" data-media-id="editor_0" data-image-id="20251113111148_ce5d50db6757c4f5a7259c10d2879ee5f5b7b990e987bf3734378ba464afc9d5" data-rendition-name="original" width="5712" height="4284" loading="lazy" alt="The Bon Po way of life NT"> </figure>  The Bon faith was much more widespread during the reigns of Nyathi Chenpo, the first king of Tibet to Namri Srongchen, the 32nd king. But it was after King Srongchen Gompo that Buddhism started making inroads on the plateau, and spread also in the Himalayan rimlands. There are also Bon followers in Humla, Jumla, Baglung, Mugu, Kaski and Chitwan, as well as in the United States and 50 other countries, indicating the movement of people within Nepal and outside.&nbsp; The Bon religion believes in reincarnation and that everything, including positive and negative thoughts are a result of past life karma. Buddhism focuses more on attaining Nirvana, a state of no suffering, where the subject is released from all his/her karmas. Bon has also inducted some Tantric practices and rituals, some of which are in parts similar, yet still different from Buddhism.&nbsp; “In Buddhist culture, circumambulation of shrines is clockwise, but in Bon culture, circumambulation is in an anticlockwise direction,” explains Chhiring Lama of Triten Norbutse Monastery. “The main Bon mantra is Om Ma Tri Mu Ye Sa Le Du, while followers of Buddhism chant Om Mani Padme Hum. Buddhism emphasises enlightenment by meditation and moral behaviour, while Bon beliefs centre on nature and ancestor worship, and placating the spirits. In religious texts, it is mentioned that there were 1,008 Buddhas throughout time. Tonpa Shenrab is believed to be the 8th Buddha, and Bon practitioners are guided by his teachings contained in 140 sacred writings known as Kangyur and 300 more scriptures known as Katen.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07.jpg" data-media-id="editor_1" data-image-id="20251113111152_9813ce72805941af4b3bfb3c80c7e45ffc8aca4f2612eb967e84204f3a28bc07" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="The Bon Po way of life NT"> </figure>  “We worship nature and its elements and the prayer flags contain religious texts and when the wind blows through it we consider it a prayer,” says Chhiring Lama. “We also worship ponds for the water and consider fire as a sacred element as well. We also consider snakes sacred, therefore worship ponds, considering them as the place of residence.” The interdependence between human beings and nature is clearly depicted through such traditions and practices which carry relevance today as the planet faces the crisis of climate breakdown.&nbsp; Important gods worshiped include Satrig Ersang, Shenlha Okar, Sangpo Bumtri, and Tonpa Shenrab Miwoche. But what is similar to Buddhism is an offering known as ‘torma’, a cone shaped ritual offering made from flour dough. Many Bon faithful are vegetarian, or abstain from meat during festivals.&nbsp; Over time, the rise of Buddhism in Tibet and beyond overshadowed Bon, pushing many of its practices to the margins. Yet, the tradition continues to live on, carried by those who see in it a deep connection to nature, the spirit world, and the roots of Tibetan culture.&nbsp; In many ways, the endurance of Bon is a reminder that even the quietest faiths hold timeless truths, waiting to be remembered and valued. Followers of Bon today are far fewer, and the knowledge about its traditions is not as widespread.&nbsp; “As time goes on, people adopt rituals and cultures that are more convenient to their daily lives,” says Chhiring Lama. “But that means forgetting or leaving behind one’s indigenous and ancestral roots.”

pm-sher-bahadur-deuba