Following the release of the report by the Parliamentary Special Investigation Committee on the cooperatives fraud, RSP member Shisir Khanal made a rather bizarre statement to the media.
While defending the alleged involvement of his boss Rabi Lamichhane and his tv venture partner G B Rai in diverting the savings of depositors of multiple cooperatives, he said: “G B Rai was already so rich, why would Rabiji investigate the source of his investment? Would you ask Binod Chaudhary where he got his money if he wanted to invest in your media?”&nbsp;
Khanal was a former RSP education minister and co-chair of the reputed Teach for Nepal. For someone who claims to have joined politics to reform Nepal’s education sector, this was woefully underwhelming.&nbsp;
Lamichhane is innocent until proven guilty by the courts. But there is no smoke without fire, and the man’s political career so far during several tenures as home minister has been, to put it politely, questionable.
Other RSP technocrats like economist Swarnim Wagle, IT entrepreneur Sumana Shrestha and physician Toshima Karki joined the party because they believed in nurturing an ethical political ecosystem in Nepal. We understand that they have to toe the party line, but they all say the committee gave Lamichhane a clean chit. Which it did not. &nbsp;
To be sure, there is evidence that the NC and UML connived in June to topple the Maoist-led coalition in which Lamichhane was home minister because his investigation into the fake refugee and Jhapa tea estate land scam were getting close to the top leaders of both parties.
Besides that, Nepal’s two biggest parties in the current coalition also want to prevent the RSP from getting too popular before the next elections in 2027. The RSP vs NC-UML prize fight therefore is looking like the pot calling the kettle black.&nbsp;
For the RSP’s own sake, and to bolster its original image of a new alternative party that stands for good governance, integrity and delivery, it needs to purge itself of a leader who is always neck deep in serial scandals.&nbsp;
Lamichhane is behaving exactly like the elderly alpha males of the other established parties that he was promising he was different from. We have seen all this before: a party leader who does not want to let go and expects all-out loyalty from cadres even when there are moral questions.
Communist parties believe in ‘democratic centralism’ and actively suppress criticism of their supreme leaders. But in Nepal it is SOP even in parties that have fought long and hard for democracy and pluralism to do so.
Those who dare criticise the Great Leader are sidelined, framed, or driven into oblivion. Party bosses consider their own colleagues as more of a threat to their power than those in an opposition party. Political parties have factions within factions.&nbsp;
All this is nothing new. But we had all hoped that for the country’s sake the RSP was different. That it would be more transparent and exercise more internal democracy, that policy would take precedence over politicking, discretion would prevail over discord, top leaders would make good governance the goal rather than personal gain.&nbsp;
The RSP cannot hope to be an alternative party, if singing hymns of a tainted Dear Leader is the condition for membership. Lamichhane’s ex-comrade Mukul Dhakal has quit, but other technocrats are falling over each other to demonstrate their loyalty to him. The fear seems to be that opposing the leadership will end one’s political career. (Sound familiar? Trump’s GOP.)&nbsp;
Most politicians make the mistake of believing that power is the ultimate truth. They believe that power, authority, and right are one and the same, and everything else is secondary. But in politics, one is expected to uphold higher moral standards and be accountable to the public. &nbsp;
Lamichhane was elected on a populist platform, turbocharged by his fiery tv anchor role. But ever since he entered politics, he has defied and deflected allegations about his passport and citizenship by wiggling his way into any available coalition and bargaining hard for the home ministry post. He tried to do the same in the previous government to launder the cooperative scam.
He played hardball, and the current coalition is also playing hardball. That is politics, but Lamichhane has failed to grasp that patriotism is not proof of honesty. Instead, he has consistently resorted to fear-mongering, using vengeful language and spewing threats (including against the media) when in power and out of it.&nbsp;
He could have used legal means to defend allegations, or even stepped aside to facilitate the investigation. Instead, he has fallen back on social media-driven populism to foment public sympathy. The established parties are so discredited themselves that his supporters are willing to believe that the NC and UML are out to get him for exposing skeletons in their closet. By dismissing allegations against its chair, the RSP’s aspiring technocrats have undermined their own futures. The Greek philosopher Erasmus is supposed to have said that a fish rots from the head down.&nbsp;
That could very well apply to the RSP if its honest and competent second echelon do not follow their conscience, and continue to &nbsp;parrot a compromised leader. &nbsp;
This has been adapted with permission from an Editorial in Nagarik Daily published on 22 September 2024.

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

thumbnail

viewImage

RSP’s RSVP

Nepal and India are both Hindu-majority countries, but there is a difference between the Hindutva nationalism playing out in India’s ongoing elections and the Hindu faith as practiced in Nepal.
Most Nepalis are too busy trying to get by in hard economic times to be too engrossed with elections across the border. Some do harbour strong views about Narendra Modi’s brand of Hindu revivalism, and the RPP in particular seems to want to imitate the BJP’s ability to set a national Hindutva narrative.
Still, a majority of Nepalis look at Narendra Modi with something between indifference and fondness. The Indian Prime Minister has visited Nepal five times since he was first elected in 2014, and many here still remember his address to Parliament which he began in Nepali during his first state visit to Kathmandu.
There is a section in Nepal that supports a non-secular Hindu state, and Nepalis have noticed that every time Modi comes to Nepal he makes it a point to visit Hindu and Buddhist sacred sites. But in contrast to his BJP’s Hindu exclusionist policies in India, Nepal has traditionally enjoyed a syncretic blend of Hindu and Buddhist traditions.
Read also: <a href="https://nepalitimes.com/opinion/borderlines/the-south-wind-blows">The south wind blows</a>, Chandra Kishore
For most Nepalis, therefore, the affinity for BJP and Modi could be characterised as cultural rather than political. Most Nepalis still have memories of the hardships they suffered during the 6-month blockade that New Delhi imposed just after the 2015 earthquake because it did not like the contours of Nepal’s new draft Constitution.
The poor showing of the Hindu-monarchist Rastriya Prajatantra Party (RPP) in last month’s by-elections in Ilam and Bajhang shows that at least in the mountains, Nepalis are not so impressed with the polarised electoral politics on display in India. Interestingly, Bajhang is close to the Indian state of Uttarakhand which has declared itself to be a Hindu-only ‘Devbhumi’ and with which it has close cross-border cultural ties.
Although factions of the other four main parties in Parliament, the NC, UML, Maoist-Centre and the RSP, do flirt with the Hindu-monarchy line from time to time, there is not much public support for it yet and none of the four largest parties in Parliament has officially voiced its support for such an agenda.
When (and if) Modi does win a third term in India’s elections there could inevitably be ripple effects in Nepal — especially if the BJP’s mentors in the Rastriya Swayamsevak Sangh (RSS) adopt an even more radical agenda, abolish secularism from the Indian Constitution, or push the Greater India idea of ‘Akhanda Bharat’.
Read also: <a href="https://nepalitimes.com/here-now/india-s-faith-in-politics">India’s faith in politics</a>, Shrijan Pandey
Even so, rousing radical religious passions will not be as easy in Nepal, which is South Asia’s oldest nation-state and does not carry with it the historical baggage of Partition. Nepal’s Muslim minority which forms 5% of the population has for the most part lived in harmony with Hindus and Buddhists, although there are politically-instigated local flare-ups from time to time mainly along the southern border.&nbsp;
Though Nepal’s Hindu population is more than 80% (2021 census), Nepal as a whole is a country of minorities. The Hill-Brahmin and Chhetri may dominate the political and economic spheres, but they form less than 30% of the population. Nepal’s ethnic and indigenous groups have been asserting themselves, as seen in the recent Ilam by-election, where the UML’s Suhang Nembang comfortably beat the NC’s Dambar Bahadur Khadka by close to 6,000 votes. However, an independent candidate, Dakendra Singh Limbu, with no political affiliation, but who campaigned on a platform of assertive Limbu identity, made a strong showing, finishing third with 11,457 votes.
Such identity politics is more a response to ethnic exclusion and a demand for regional autonomy than pushing a religious agenda. Indeed, Nepal’s political parties have so far desisted from mixing religion with politics, even though some individual leaders in the parties sometimes seem to appear to be sorely tempted.
Nepal’s next general election is more than three years away, and India-style Hindutva politics could still be whipped up. For now, it seems more likely that it will be Nepali nationalism that will be a more potent vote-mobiliser.
This already seems to be happening, with the government minting Nepal’s new 100-rupee note that depicts the country’s ‘pointy map’ (‘chuchhe naxa’) showing a 350-sq km strip of territory in its northwestern tip which is also claimed by India.
Read also: <a href="https://nepalitimes.com/opinion/borderlines/crimson-saffron-and-green">Crimson, saffron and green</a>, Chandra Kishore
Akhilesh Upadhyay is former Editor-in-Chief of The Kathmandu Post and a Senior Fellow at the think tank, IIDS.

1250x600

1084x550

Southerly winds

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1d289c7e80680e0af399jpeg.jpg" alt="" width="1086" height="631"/><figcaption>Debate over secularism and monarchy now threatens the RPP’s own unity. Leaders Kamal Thapa (left) and Rajendra Lingden (right).</figcaption></figure>The inauguration of the Rastriya Prajatantra Party (RPP) ‘Unity Convention’ on 1 December in Kathmandu provided a preview of the issues that will dominate Nepal’s elections a little more than a year away.Invited were leaders of other main parties, and they went at each other with hammers and tongs about <a href="https://www.nepalitimes.com/editorial/nepal-party-reincarnating-hindu-monarchy/" target="_blank" rel="noopener noreferrer">secularism and monarchy</a>. It sounded like the hustings already, indicating the likely fault-lines in the 2023 polls.From the RPP stage, Prime Minister Sher Bahadur Deuba mumbled platitudes about “the need for like-minded parties to work together for the betterment of the country”.  Madhav Kumar Nepal of the Unified Socialists who split from the <a href="https://www.nepalitimes.com/latest/post-convention-uml-eyes-set-on-elections/" target="_blank" rel="noopener noreferrer">UML</a>, urged the RPP not to “slide backwards” – meaning don’t bat for monarchy.But it was CP Mainali of the CPN (Marxist-Leninist) and Pushpa Kamal Dahal of the CPN (Maoist Centre) who showed that despite both being once diehard Communists, the comrades had widely divergent views on Nepal’s erstwhile monarchy.Mainali extolled King Mahendra’s nationalist credentials, adding that every political change in Nepal in the past half-century was a result of foreign (read “Indian”) interference. Mainali, who suffered serious injuries in a highway crash last year, has of late been making pro-monarchy statements.Dahal played to the gallery saying his Maoist party and the RPP may have divergent views but both were “patriots”. He then took a dig at Mainali, saying it was absurd for a republican who once decapitated class enemies to support a return to monarchy.“Maybe he should be heading the RPP,’ Dahal said, a proposal enthusiastically endorsed by former prime minister and RPP leader Lokendra Bahadur Chand.Ironically, the debate over secularism and monarchy now threatens the RPP’s own unity because of the defeat of incumbent party chair Kamal Thapa by newbie Rajendra Lingden.The campaigning itself was fairly civil, with both candidates meeting ex-king Gyanendra separately to seek his blessings. (King G, it is said, nodded sagely and told both to “go ahead”.) Lingden beat Thapa 1,817 to 1,617 on Sunday.Kamal Thapa served King Gyanendra loyally, and was home minister when security forces cracked down on pro-democracy supporters in April 2006. Obviously, he was not loyal enough to the royal.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1d2b9c7e80680e0af39ajpeg.jpg" alt="" width="676" height="775"><figcaption></figcaption></figure>After the results were out, Thapa lashed out at both Gyanendra and an unverified tweet from Himani Shah dripping with satire, lamenting being punished by ‘Nirmal Nibas’ for being loyal to the monarchy.Indeed, throughout the RPP convention both Thapa and Lingden had been trying to outdo each other’s monarchist connections, the primary agenda of the party’s political document called for the restoration of monarchy and Hindu state.Besides Lingden, his supporter and <a href="https://www.nepalitimes.com/here-now/rana-regime-restored-in-nepalganj/">Nepalganj mayor</a> Dhawal SJB Rana (a former <a href="http://archive.nepalitimes.com/news.php?id=10282#.Ya3DHVVBypo">Nepali Times columnist</a>) won general-secretaryship. Supporters of Kamal Thapa did manage to keep significant senior party positions.Lingden’s elevation to RPP chief will mean the party will be even more aggressive in promoting the royal-Hindu line throughout 2022. This will also have a ripple effect on other parties, especially the UML. After all, <a href="https://www.nepalitimes.com/latest/oli-sweeps-uml-party-polls/" target="_blank" rel="noopener noreferrer">K P Oli </a>who openly backed Lingden’s campaign in the 2017 elections against Krishna Sitaula of the NC, thus winning him the only RPP seat in Parliament.There is even talk of a UML-RPP electoral alliance, and if that happens Oli’s not-so-subtle drift to the Hindu-right during his prime ministership will not look so surprising.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1d2d9c7e80680e0af39bjpeg.jpg" alt="" width="1086" height="783"><figcaption>Dhawal SJB Rana</figcaption></figure>The NC is having its own convention next week in Kathmandu where it looks like Deuba will be re-elected party leader. But even in the NC, there is Shashank Koirala and others backing the Hindu state agenda.The ‘alternative’ Bibeksheel Sajha Party and its leader Rabindra Mishra is also pushing the anti-secularism, anti-federalism and monarchist line. He made a scathing attack on “those who garland Mao, but disown Mahendra” at a party unity gathering in Patan last week.When political parties cannot be distinguished by their socio-economic or political agenda, it is tempting for them to fall back on religion and the ‘order’ of the monarchy days. The parties have felt the public pulse, and detect disenchantment with the current federal polity, and especially against secularism which is seen to be foisted by outside forces.India’s gravitational pull on Nepal also means that the election campaigning next year could end up being a proxy battle reflecting the secularism debate in India itself. We are already beginning to see political alignments between and within Nepal’s parties reflecting this, and it will be more apparent in the coming months.

Battle lines drawn for Nepal elections

Go back to sleep, we'll wake you up when things start getting really exciting around here. Politicians are up to their ears waging party conventions, and nominating mascots.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1c9e9c7e80680e0af36cjpeg.jpg" alt="" width="1250" height="1909"/><figcaption>The UML started the ball rolling, and showed it has unparalleled finesse in the publicity department. Its choice of convention mascot is a naked two-legged one-horned rhino holding the party flag. (Since this is a family newspaper, we have put red undies on the upright rhino-soreass.)</figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1ca19c7e80680e0af36djpeg.jpg" alt="" width="1250" height="1909"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1ca49c7e80680e0af36ejpeg.jpg" alt="" width="846" height="1170"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1ca79c7e80680e0af36fjpeg.jpg" alt="" width="846" height="1170"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1caa9c7e80680e0af370jpeg.jpg" alt="" width="1399" height="1711"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1cad9c7e80680e0af371jpeg.jpg" alt="" width="1246" height="1524"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1cb09c7e80680e0af372jpeg.jpg" alt="" width="1000" height="1430"><figcaption> </figcaption></figure>

Ass s

Animule Farm

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

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

rastriya-prajatantra-party