<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101144/63720df49c7e80680e0b78edjpeg.jpg" alt="" width="960" height="640"/><figcaption>Photo: NEPALI TIMES ARCHIVE</figcaption></figure>“The paradox is this: if economic rationality tells us that the next century will be the age of global integration of the world’s economies, cultural ‘irrationality’ steps in to inform us that it will also be the century of ethnic demands and revived nationalisms. Both reason and imagination tell us that the name of the solution, that point where you can balance the demands of integration and those of the nationalities, is federalism.”-Carlos Fuentes, 1996These were the concluding remarks in 2003 by <a href="https://www.nepalitimes.com/latest/remembering-harka-gurung/" target="_blank" rel="noopener noreferrer">geologist Harka Gurung</a> quoting the Mexican novelist in his discourse ‘Trident and Thunderbolt: Cultural Dynamics in Nepalese Politics’ as part of Social Science Baha’s Mahesh Chandra Regmi Lecture.There was a reason and relevance to Gurung quoting Fuentes. Nepal was at the peak of the <a href="https://www.nepalitimes.com/here-now/from-the-frontlines-of-nepals-war/" target="_blank" rel="noopener noreferrer">Maoist conflict</a> and had just come off one of the bloodiest years of the insurgency. Abolition of the monarchy and state restructuring were being hotly debated even in the remotest corners of Nepal. King Gyanendra had staged a coup and political parties were preparing to take to the streets.Gurung was killed in the <a href="https://www.nepalitimes.com/here-now/remembering-nepals-conservation-heroes/" target="_blank" rel="noopener noreferrer">Ghunsa helicopter crash</a> a few months after the ceasefire, but his 'federalism' solution was finally adopted in the 2015 Constitution.The preamble to the Constitution reads, ‘... resolving to build an egalitarian society based on the principles of proportional inclusion and representation to ensure economic equality, prosperity and social justice by assimilating the multi-ethnic, multi-lingual, multi-religious, multi-cultural and geographically diverse characteristics...’In accordance with this constitutional commitment and provision, elections for 753 local governments were held in 2017. Next month, it will be five years since they took office and on 13 May <a href="https://www.nepalitimes.com/editorial/think-nationally-vote-locally/" target="_blank" rel="noopener noreferrer">Nepalis will vote</a> for the second time in local elections.How successful have local governments been in 'establishing prosperity with social justice by addressing the diverse features of Nepali society' as directed by the Constitution? How much has service delivery improved, is it equitable, and is there <a href="https://www.nepalitimes.com/banner/power-to-the-periphery/" target="_blank" rel="noopener noreferrer">better governance</a>? What worked, what did not?The lessons learnt during the past five years can be a guide for the next crop of <a href="https://www.nepalitimes.com/latest/nepals-local-governments-lead-from-the-front/" target="_blank" rel="noopener noreferrer">local leaders</a>. We need to thoroughly review the workings of local governments.If we were to believe the political class and commentators in Kathmandu, <a href="https://www.nepalitimes.com/opinion/federalism-rule-of-law-and-the-judiciary/" target="_blank" rel="noopener noreferrer">federalism</a> in five short years has failed Nepal. They argue that federalism has decentralised corruption and sowed the seeds of social division.However, despite some of this being true, most local governments have performed above expectations. According to a recent evaluation, most municipalities scored more than 50 points out of 100 in their report cards.The three local governments that scored above 75 points were all rural municipalities.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101144/63720df69c7e80680e0b78eejpeg.jpg" alt="" width="967" height="649">This assessment has challenged nay-sayers and proved that real federalism is <a href="https://www.nepalitimes.com/here-now/all-politics-is-local/" target="_blank" rel="noopener noreferrer">working well in the hinterland</a>. The constitutional provision that women should mandatorily be either mayor or deputy in municipalities and the Dalit community should be represented has changed the dynamics of how Nepal is governed.Local governments are ahead of federal and provincial governments in their ability to spend development budgets. While the centre was <a href="https://www.nepalitimes.com/latest/reinstate-remove-repeat/" target="_blank" rel="noopener noreferrer">embroiled in power struggles</a> that paralysed provincial governments, the municipal and ward levels were quietly carrying out their duties. This has meant that there is not as much disillusionment with democracy and federalism at the grassroots.Perhaps the best example of this is how local governments handled the Covid-19 pandemic. While the federal government was engulfed by international procurement scandals, it was the <a href="https://www.nepalitimes.com/latest/women-leaders-set-example-for-rest-of-nepal/" target="_blank" rel="noopener noreferrer">local leadership that stepped in</a> to provide immediate relief.This is not to say the local government were without faults which they cannot just blame on the lack of necessary laws, intervening agencies and the bureaucracy. Many elected officials have also been accused of being self-serving, inefficient and working as party cadres and not as people’s representatives.We have to learn from these mistakes, remove legal and policy ambiguities and make local governments more responsible and capable by emphasising good governance and <a href="https://www.nepalitimes.com/latest/including-the-excluded-in-the-bureaucracy/" target="_blank" rel="noopener noreferrer">inclusion</a>.This requires a paradigm shift. The federal government with its centralised mindset, meddling provincial officials and non-cooperation from the bureaucracy must change radically. After that, <a href="https://www.nepalitimes.com/editorial/polls-in-the-time-of-pandemic/" target="_blank" rel="noopener noreferrer">it is up to the local government</a> to make further reforms.In their first term, local governments focused on laying the foundations for development. Now, it has to look for economic opportunities to create jobs, raise living standards, develop human resources and conserve heritage.The first order of business to achieve this is to increase the capacity and awareness of the people to question elected representatives so that local levels are sufficiently empowered.The local unit of government is not just the cornerstone of federalism, but also a representation of participatory democracy that connects the state with the people.Federalism is also a threat to anti-democratic and regressive forces that want to take Nepal back to past instability. Federalism is not why the country is falling apart, as some would have it, but the cement that binds this diverse nation together.

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Nepal’s local election gives power back to people

<figure><img width="1750" height="919" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114091156/6372033d9c7e80680e0b27f9jpeg.jpg" alt=""/><figcaption></figcaption></figure>The Election Commission has set local elections for May, with federal elections following early next year. Given the heated debate about federalism and <a href="https://www.nepalitimes.com/opinion/secularism-and-sectarianism/" target="_blank" rel="noopener noreferrer">secularism</a> the polls will be a referendum on those two issues. In 2017, Nepal held sub-national elections after 20 years. Those ward, municipal  and provincial representatives were pushed into uncharted territory, and coped the best they could. The hope was that locally-elected leaders would demonstrate more accountability than their national-level counterparts.Indeed, some ward and municipal chairs <a href="https://www.nepalitimes.com/latest/women-leaders-set-example-for-rest-of-nepal/" target="_blank" rel="noopener noreferrer">performed exceptionally well</a>. But many mayors are <a href="https://archive.nepalitimes.com/article/from-nepali-press/Elected-contractors,4182" target="_blank" rel="noopener noreferrer">contractors</a>, and are involved in blatant malfeasance. Political devolution has decentralised corruption as well. News reports about Bagmati Province’s bloated ministries as well as the provincial governments just being reflections of the power balance in Kathmandu have given federalism a bad name. Which is why some political leaders want federalism scrapped. Local elections this year is a chance to set things right. All politics is local – or should be. And we have seen since 1990 in Nepal that decentralised political decision-making is the best way to govern.However, there are indications the polls will be a dirty political game where politicians devoid of ideology stoke <a href="https://www.nepalitimes.com/from-the-nepali-press/back-to/" target="_blank" rel="noopener noreferrer">religious fervour </a>to get votes. This is dangerous, it will polarise and destabilise Nepali society.  This requires vigilance from voters who must vet candidates and cast their ballots for those who are more likely to address their most urgent needs like health, education, jobs and a streamlined administration – and not fall for extremist slogans.We need to make sure that the people at the local level, especially those who have been excluded till now in decision-making, benefit the most from federalism. Given Nepal’s diversity in ethnicity and religion, a prosperous and democratic society is not possible without the stability that secularism  guarantees. Going by the general conventions of the major parties over the last months, it looks like secularism, restoration of the monarchy and federalism will dominate the upcoming polls. <a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/battle-lines-drawn-for-nepal-elections/" target="_blank" rel="noopener noreferrer">Rajendra Lingden’s resounding win</a> over Kamal Thapa as the leader of the RPP means that the party will be even more aggressive in promoting the royal-Hindu line. Even self-proclaimed democratic and progressive parties that stood for alternative politics like Bibeksheel Sajha are falling back on religion and monarchy to gain popular votes.  Republicanism, federalism and secularism became the main pillars of the Constitution that was drafted after two elections following the People’s Movement of 2006. Remove any one of these three pillars and the country could be pushed back to instability. Some of the very leaders who once played a key role in writing that Constitution, like Shashank Koirala and Shekhar Koirala of the ruling Nepali Congress (NC), are in favour of a Hindu state. The main opposition UML’s K P Oli has himself been dabbling in religion. An eager gathering of former prime ministers at a recent reception for Indian guru Baba Ramdev in Kathmandu in November also showed that political leaders across the spectrum recognise the power of religion in vote mobilisation. Much of this is due to the <a href="https://www.nepalitimes.com/editorial/a-yam-between-two-indias/" target="_blank" rel="noopener noreferrer">gravitational pull that India exerts on Nepal</a>. Narendra Modi’s Bharatiya Janata Party (BJP) has actively used Hindu nationalism to stay on in power, and he has made no secret of his desire for Nepal to revert being a Hindu state. In Nepal, some leaders are deliberately bending the definition of ‘secularism’ to mean ‘anti-faith’ to disrupt Nepal’s long-standing religious harmony and tap the majoritarian vote bank. In her article Shaping Secularism in Nepal on European Bulletin of Himalayan Research, Chiara Letizia says that secularism in Nepal will be determined by how the Hindu majority is addressed: ‘Nepal is a post-secular laboratory, where the state’s policy must walk a tightrope, upholding ‘absolute’ secular values such as equal citizenship, and yet balancing the Hindu majority tradition, Hindu fears, and the claims of minorities for social, political and religious recognition.’Rajeev Bhargava, a political theorist who has studied India's secularism, suggests a principled stand for <a href="http://archive.nepalitimes.com/article/editorial/separation-of-state-and-temple-in-nepal,1444" target="_blank" rel="noopener noreferrer">secularism</a> in countries like India and Nepal which are ethnically, culturally and linguistically diverse. The state should give equal respect to all religions, but can also push universal values of tolerance and human rights.The test of a true democracy is how well it treats its minorities. Following secularism in letter and spirit makes such tolerance possible, and having it enshrined in the Constitution is not enough. It should be followed in practice. Indian historian Bipan Chandra in his 2008 book Communalism: A Primer analyses how the anti-secularism spread: ‘Communalists call themselves good nationalists and communalism as nationalism. Therefore, the good fight against communalism must be fought on the same ground of nationalism.’To prevent Nepal from falling into the same trap and keep our democracy vibrant and inclusive, we must use upcoming elections to eschew parties that espouse majoritarianism, exclusion and division.At the very least Nepal’s political leaders must adhere to <a href="https://archive.nepalitimes.com/regular-columns/by-the-way/new-constitution-should-adopt-inclusive-democracy-with-federalism-republicanism-secularism,538" target="_blank" rel="noopener noreferrer">values enshrined in the Constitution</a> as their true ‘religion’.Rabin Giri

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Volatile Mix of Politics and Religion

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1c609c7e80680e0af356jpeg.jpg" alt="" width="1800" height="1200"/><figcaption></figcaption></figure>K P <a href="https://www.nepalitimes.com/latest/oli-sweeps-uml-party-polls/" target="_blank" rel="noopener noreferrer">Oli’s re-election as leader</a> of his CPN-UML party has been portrayed by critics even within his own party as just the latest example of his authoritarian streak, but Nepal’s former prime minister has not done anything other party leaders have not done to consolidate internal power.Oli did try to get himself and his supporters appointed unopposed into leadership positions in the central membership and Central Committee. But after a rival faction led by Bhim Rawal pressed for a vote, he agreed and went on to win hands down.But had the <a href="https://www.nepalitimes.com/latest/unconventional-party-conventions/" target="_blank" rel="noopener noreferrer">much-delayed UML general convention</a> been pushed back only three months more, Oli would not have been allowed to stand for party chair since he would have crossed the age limit of 70 for executive positions.Oli, who has undergone two kidney transplants, will therefore be leading the country’s biggest party till 2025. But this is the trend in all of Nepal’s main parties which are led by elderly male politicians who have clung on to power by sidelining rivals and bending rules.Oli beat <a href="https://www.nepalitimes.com/here-now/making-up-is-hard-to-do/" target="_blank" rel="noopener noreferrer">his main rival Madhav Kumar Nepal</a> in the previous general convention seven years ago by a slim margin, and relations between the two were never good. When the UML united with the Maoists to form the Nepal Communist Party (NCP) after the electoral victory in 2018, things started to sour between Prime Minister Oli and  Maoist leader Pushpa Kamal Dahal, who found a convenient ally in Nepal.Cornered by the Nepal-Dahal faction, Oli used all the tricks in the book to stay on as both party chair and prime minister. But running out of trump cards, he dissolved the Lower House not once but twice, both times reinstated by the Supreme Court which also ruled earlier this year that the UML-Maoist party alliance was null and void.Nepal then <a href="https://www.nepalitimes.com/latest/nepals-post-breakup-politics/" target="_blank" rel="noopener noreferrer">split from the UML and set up his own Unified-Socialist party</a> and teamed up with the ruling five-party alliance with Dahal and Sher Bahadur Deuba of the Nepali Congress (NC).It is with this background that the UML party election this week has to be analysed – Oli has placed himself as the helmsman to steer the UML towards victory in the 2023 elections. The criticism against him from the other parties (by calling him authoritarian, and one cartoonist even portraying him as Adolf Hitler) is because they see him as a formidable foe.As it turned out, 2,153 votes fell at the UML general convention for various party positions, so whatever give-and-take happened behind the scenes, the outcome was democratic.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1c639c7e80680e0af357jpeg.jpg" alt="" width="1040" height="550"><figcaption></figcaption></figure>Among the candidates for senior party functionaries, Asta Laxmi Shakya with 1,976 ballots for deputy chair, and <a href="https://www.nepalitimes.com/editorial/blood-sweat-and-tears/" target="_blank" rel="noopener noreferrer">Gokarna Bista</a> with 1,974 for secretary topped the list of those with the most votes from delegates. Surendra Pandey for the second largest number of votes for deputy chair with 1,925 votes and Yogesh Bhattarai came second for secretary with 1960.Needless to say, Shakya, Bista, Pandey and <a href="https://www.nepalitimes.com/here-now/unusual-appointment-extraordinary-tasks/" target="_blank" rel="noopener noreferrer">Bhattarai</a> were all Oli’s critics and in fact were once in the Madhav Nepal faction. Neither Thakur Gaire and Ushakiran Timsena who were elected to central membership used to be pro-Oli, either.It was even more symbolic for Oli to try to get former Maoists into the top echelons of his party, which is why he fully backed the candidacies of Ram Bahadur Thapa for deputy chair, Top Bahadur Rayamajhi and Lekhraj Bhatta as secretaries.On 28 November, the close door meeting of an 11-member committee drew up a list for the 19 member Secretariat high command and candidates for the central membership. Questions can be raised about Oli having manipulated the process in his favour, but even if he did it, it did not go against party rules. And the fact that his candidates got the most votes makes the point moot now.With his <a href="https://www.nepalitimes.com/here-now/nepals-rudderless-political-leadership/" target="_blank" rel="noopener noreferrer">eyes firmly set on elections</a>, he deliberately promoted the Nepal-faction candidates and ex-Maoists to top party positions. Even his detractors within the party understood that strategy and went along with it.And by not allowing Oli to elevate his candidates to the central membership and Secretariat unopposed, Bhim Rawal and Ghanshyam Bhusal actually helped him gain legitimacy, and earn credit for upholding internal democracy. That Oli and his supporters would win was a foregone conclusion, which is why Rawal and Bhusal actually ended up strengthening the UML.To be sure, Oli pushed his own blue eyed boys as well: Ishwar Pokhrel as senior deputy chair, Shankar Pokhrel as general secretary, as well as Bishnu Rimal as deputy general secretary and Padma Aryal as secretary.Ironically, the most dissatisfied with Oli were his close allies Bishnu Poudel, Subhas Nembang, Lalbabu Pandit, Binda Pandey, Radha Gyawali, Goma Devkota, and Bishal Bhattarai who did not get the positions and seniority they thought they deserved.

Post-convention, UML eyes set on elections

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

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

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan