https://youtu.be/TjoXT_Pu2koWith its new highway to the north, Surkhet has become the gateway to the Karnali and is morphing into a boomtown. But 10 minutes out of the dusty, bustling city nestled amidst a terraced landscape, the Kopila Valley School (KVS) is a functioning model for the rest of Nepal on how schools should be built and administered.At a time when progress is marked by the rise of glass and concrete structures, the school employs rammed-earth technology with an ecofriendly philosophy that uses local materials for construction, harnesses the sun and sewage for energy, harvests rainwater and minimises waste.But even founder Maggie Doyne at first needed convincing by architect Prabal Thapa to accept a mud design for the buildings. Her vision of an environment-friendly school was one made of bamboo, like the Green School she had seen in Bali.“Look, we’re not in Bali,” Thapa told her. “We are in Nepal, and Nepal is known for mountains. With rammed earth, you’re making mountains.”Read also:<a href="https://www.nepalitimes.com/here-now/quake-was-a-learning-experience-for-nepals-schools/" target="_blank" rel="noopener">Quake was a learning experience for Nepal’s schools</a>, Prakriti Kandel<a href="https://www.nepalitimes.com/editorial/lowest-common-denominator/" target="_blank" rel="noopener">Lowest common denominator</a>, Editorial<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41ae9c7e80680e04a68cjpeg.jpg" alt="" width="1400" height="1049"/><figcaption>All photos: SHEILIN TEO</figcaption></figure>Rammed earth provides excellent thermal mass to keep temperature stable indoors, it uses local material and labour, the structure is durable and easy to maintain. The walls are nearly 0.5m thick, and reinforced with steel and concrete banding for seismic resistance.“We wanted the school to feel Nepali through and through, to stay true to local architecture that is so stunningly beautiful,” explains Doyne, showing us around the campus.The two-storey school blocks are simple and rectangular, with gabled roofs, breezy stairwells, and are connected by corridors on one side, much like traditional farmhouses in Nepal. The buildings are designed as modular blocks that can be arranged in various ways to suit the landscape and functions required by the school. The simplicity and repeatability of the modules were important considerations to allow ease of building by unskilled local labourers, many of them women trained on the job.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41b19c7e80680e04a68djpeg.jpg" alt="" width="5000" height="1784"><figcaption> </figcaption></figure>Standing within the grounds, it becomes clear why buildings were sited as they were: they form a protective coterie around a central sports court and create ancillary terraces where children play. The topography creates opportunities for passive surveillance from the administrative block that sits towards the top of the sloping site, and plenty of gathering and resting places along stone-lined steps that double as bleachers overlooking play areas and gardens. When children pour out of their classrooms, they tumble across the sports court and down the stairs, bobbing along ramps that slice across the school’s terrace walls brightly coloured in house colours of reds, blues, yellows and greens.Read also:<a href="http://archive.nepalitimes.com/news.php?id=19495#.XOah1BYzbIU" target="_blank" rel="noopener">Bhaktapur</a>, Lukas Grimm<a href="http://archive.nepalitimes.com/news.php?id=12450#.XOahzhYzbIU" target="_blank" rel="noopener">Mud, glorious mud</a>, Nripal Adhikari“Construction was so difficult, and the only thing that got us through the really hard moments was knowing that one day there would be kids in these classrooms,” Doyne says, explaining that complications in scheduling, budgets and differences of opinion about expectations and work values of intercultural and international teams proved to be challenges.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41b49c7e80680e04a68ejpeg.jpg" alt="" width="2500" height="2174"><figcaption> </figcaption></figure>The project is not just a simple school. Strengthened with steel, stabilised with cement and concrete, fitted with high performance, durable windows, the school buildings called for experience and skills beyond those required by a traditional project. More advanced, outside-the-box technology gives the campus an edge of self-sufficiency, ease of maintenance and durability.Green technology comes at a cost, with lengthy payback periods that are possibly out of reach of most other schools in Nepal, but are easily adaptable to the local context: filtration systems, biogas, rainwater harvesting by Smart Paani, and solar systems by Sun Farmer. At Kopila, all these design elements are integrated in the school’s new buildings, their functions and terrain, giving the school its green edge.“I feel that this campus has so much integrity. Every step of the way, we made decisions that were sometimes hard, or that had cost implications, or we had to forgo certain things in order to have others, but there’s nothing I would change,” says Doyne.Read also:<a href="https://www.nepalitimes.com/banner/learning-from-nepals-past-to-rebuild-its-future/" target="_blank" rel="noopener">Learning from Nepal’s past to rebuild its future</a>, Prakriti Kandel<a href="https://www.nepalitimes.com/banner/lost-in-reconstruction/" target="_blank" rel="noopener">Lost in reconstruction</a>, Shiva UpretyThis approach is not limited to the physical design of the school; its curriculum is also grounded in place-based learning that adapts Nepal’s national curriculum to the school’s philosophy. Principal Naim Chaudhari explains: “It is about trying to integrate what we find in the community, what we can learn from and what we can give back to it. After all, when the children graduate they go into the community and they will live there. That is where they will grow further.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41b89c7e80680e04a68fjpeg.jpg" alt="" width="1400" height="1050">The school has a farm and a vocational focus, and the students learn at least one skill each year from among cooking, washing, cleaning, driving, farming, agro-forestry, animal husbandry, horticulture, welding, woodwork, machine work and electrical skills.“When our children graduate from here, they should either go for further studies or be able to find a job,” says Chaudhari.The school includes Grades 1-10 and an Early Childhood Village that focuses on self-learning through play and exploration. The older ‘plus-two’ students are still in an old bamboo school by the highway, but there are plans to bring them into the new buildings.The school’s design allows the new classrooms to blend into the greenery, preserving the productive fruiting trees on site. Just as village life still clings to the fringes of Surkhet, the school’s program extends to the students’ families, farms and the community.“We are a full service community school,” Doyne explains. “It is not just for the kids who study here — we want to bring the community in. This buildings belong to them, and I hope it makes them think about what they ultimately build someday. Just like Bali inspired Kopila, I hope that there will be other schools like this in Nepal, because this one existed.”Read also:<a href="https://www.nepalitimes.com/banner/class-struggle/" target="_blank" rel="noopener">Class struggle</a>, Prakriti Kandel<a href="https://www.nepalitimes.com/banner/building-back-cheaper-and-stronger/" target="_blank" rel="noopener">Building back cheaper and stronger</a>, Sapana Shakya and Aman Raj KhatakhoMaggie's missionIn 2005 when she was 19, Maggie Doyne was trekking in Nepal when she met Hima, a child worker. That started Doyne's Nepal journey, and her efforts to help children go to school eventually expanded to setting up Kopila Valley School and its sister initiatives in Surkhet.Doyne was named the 2014 Unsung Hero of Compassion, awarded by the Dalai Lama, and won the 2015 CNN Hero of the Year Award. Kopila is funded by The BlinkNow Foundation, a non-profit Doyne founded in 2007 as part of a network of initiatives comprising a children’s home, housing for at-risk girls, a training centre for women and a health clinic. KVS admits primarily children from disadvantaged backgrounds, providing for their education and welfare needs. It also runs a Futures Program to teach life skills, and provides vocational and academic support for senior students.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41bb9c7e80680e04a690jpeg.jpg" alt="" width="400" height="400"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41bc9c7e80680e04a691jpeg.jpg" alt="" width="2000" height="1602"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41c09c7e80680e04a692jpeg.jpg" alt="" width="640" height="961">Sun roofConcentrated solar panels on the roof of the canteen, by Sunworks Nepal, power cookers in the kitchen and replace Rs60,000 worth of LPG per year. Gas is still used as backup, but it is methane from a digester hidden under the artificial turf of a sports court, fed by effluent from the toilets. Irrigation for the school’s vegetable garden and landscaping comes from black and grey-water filtration beds. Rainwater from the roofs is harvested into a 300,000l water storage tank under the school canteen, designed to fill all water needs for a year. Arrays of solar photovoltaics power the school, backed up by a diesel generator. Compost from black-water waste is used to grow the KVS’s organic produce.

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Starting Nepal’s green school movement

https://www.youtube.com/watch?v=vGngulAKKQc&amp;feature=youtu.beAt the edge of Tika Vidyashram School in Sanepa rises a new, three-storey building, much bigger than the one damaged in the earthquake. The classrooms are airy, bright and spacious, the staircases are wide and there is even a balcony that overlooks the grounds.The government school was built 70 years ago with traditional mud mortar and bricks, and had to be demolished after the <a href="http://archive.nepalitimes.com/blogs/thebrief/2015/04/25/massive-earthquake-rattles-nepal/" target="_blank" rel="noopener">2015 earthquake</a>.  The new blocks have been designed and built with reinforced concrete to be earthquake resistant, as well as to provide a child friendly, comfortable environment.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a36419c7e80680e0482fajpeg.jpg" alt="" width="1000" height="454"/>“The old school was dark, and the students looked gloomy. But the new classrooms provide a much better environment for children, and even the teachers are happy with the improved facilities, which means a better learning experience,” says principal Bimala Lamichhane. Like Tika School, many government schools in the earthquake areas have not only been rebuilt, but they have been built back better.Read also:<a href="https://www.nepalitimes.com/?p=25110&amp;preview=true" target="_blank" rel="noopener">Shaking up the health sector</a>, Sewa Bhattarai<a href="https://www.nepalitimes.com/?p=25092&amp;preview=true" target="_blank" rel="noopener">Lessons Unlearnt</a>, Editorial<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/tall-order/" target="_blank" rel="noopener">Tall order</a>, Sewa Bhattarai and Prakriti Kandel<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108111156/636a36429c7e80680e0482fbjpeg.jpg" alt="" width="1400" height="1028"><figcaption> </figcaption></figure>Tika School’s reconstruction is financed by loans from the Japan International Cooperation Agency (JICA) to the Nepal government. The main academic block of the school now has nine rooms, a building for science practicals is being erected nearby with four large rooms spread over two floors that will house a library, science lab, computer room and music room.Tika School is among 8,000 schools undergoing reconstruction after being damaged in the <a href="https://www.nepalitimes.com/here-now/past-disasters-foretold/" target="_blank" rel="noopener">earthquake</a>. A majority of them are government schools and follow similar earthquake-resistant designs created by the Central Level Project Implementation Unit under the <a href="https://www.nepalitimes.com/here-now/hired-fired-rehired/" target="_blank" rel="noopener">National Reconstruction Authority (NRA)</a>.Engineers from the District Level Project Implementation Unit (DLPIU) oversee the construction and ensure that quality is maintained. The NRA says 4,201 of the damaged and destroyed schools have been rebuilt while 2,619 schools are under construction with help from various donors like JICA, USAID, and private groups.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=25101&amp;preview=true" target="_blank" rel="noopener">Nepal’s traditional seismic resistant designs</a>, Sheilin Teo<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=25102&amp;preview=true" target="_blank" rel="noopener">Building back cheaper and stronger</a>, Sapana Shakya and Aman Raj KhatakhoOne private group working to rebuild schools is Sustainable Future, which uses non-traditional building technologies that are said to be <a href="http://archive.nepalitimes.com/article/nation/rebuilding-environmentally-friendly-cheaper-houses,2826" target="_blank" rel="noopener">environmentally friendly</a> and earthquake resistant. Two schools destroyed in the earthquake, Dwarpaleswor and Bageswori schools of Kavre district, are being rebuilt using rammed earth technology.Sustainable Future is also involved in the project that is using the same technology to expand Bayalpata Hospital in Achham, a facility run by the organisation Possible under a public-private-partnership with the central government. Sustainable Future collaborated with Namaste Nepal in building Bageswori school.“Rammed earth uses locally available mud and minimal cement to construct the walls of the schools, making the buildings better suited for the local climate,” explains Narayan Acharya of Sustainable Future. Cement is used in the upper and lower tie beams so that the vertical and horizontal rods going within the mud walls are well connected. This makes the buildings stronger than traditional <a href="http://archive.nepalitimes.com/article/nation/A-concrete-future,2251" target="_blank" rel="noopener">reinforced concrete structures</a>.“At first we thought 'How can we build a school out of mud?', but we realised that there were huge benefits,” recalls Shiva Prasad Bajgai, chairperson of Dwarpaleswor School Management Committee. “It is hot here in the summers and very cold in winters, and the mud architecture has insulating properties.”Read also: <a href="https://www.nepalitimes.com/banner/class-struggle/https:/www.nepalitimes.com/banner/class-struggle/" target="_blank" rel="noopener">Class Struggle</a>, Prakriti KandelTo the north in Sindhupalchok, the Bhote Namlang Secondary School was also completely destroyed during the earthquake and was reconstructed with the support of Helambu Education Livelihood Partnership (HELP). The school now has 22 rooms: 12 were newly constructed, 4 were retrofitted and 6 additional rooms were built by the DLPIU.Bhote Namlang school serves as the education hub of its community, and it was the local people who took charge of the reconstruction, with help from New Zealand  and UK-based organisations. The school was reconstructed using local skills and material without any contractors. Architects listened to the local people’s needs before submitting their design. The school's frame structure ensures that it is earthquake resistant.Read also:<a href="https://www.nepalitimes.com/opinion/nepal-is-being-loved-to-death/" target="_blank" rel="noopener">Nepal is being loved to death</a>, Anil Chitrakar<a style="background-color: #ffffff; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/banner/nirmala-pariyars-2nd-life/" target="_blank" rel="noopener">Nirmala Pariyar's 2nd life</a>, Ramu SapkotaBhote Namlang has 675 students, and faced a shortage of classrooms and furniture for four years after the earthquake. But today, there are bright modern classrooms, and the students are happy, says Jimmy Lama of HELP, adding that now new sections can be added to accommodate more students.Apart from being earthquake resistant, many of the rebuilt schools now have much better infrastructure than they did before 2015, allowing them to focus on <a href="https://www.nepalitimes.com/banner/after-quantity-nepals-education-needs-quality/" target="_blank" rel="noopener">improving the quality</a> of instruction.The only problem is that with accelerated outmigration after the earthquake, the villages are being depopulated and there are fewer children. The hope is that with better schools, some of the families who have migrated to the cities may actually return.Says Bajgai of Dwarpaleswor school, “Now that we no longer have to worry about infrastructure, we are thinking of expanding the school to Grade 10 and investing in better teachers and improved quality.”

Quake was a learning experience for Nepal’s schools

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

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

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>.