<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f239c7e80680e056e0ajpeg.jpg" alt="" width="1000" height="1500"/><figcaption>Mutton Korma. Photos: MANNSI AGRAWAL</figcaption></figure>Nepal’s <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/the-rana-reign-a-recap-of-history,3751" target="_blank" rel="noopener">Rana dynasty</a> ruled for just over 100 years, building ornate neo-classical palaces with vast manicured gardens copied from Victorian England, while the aristocrats wore magnificent jewellery.What the Ranas are less well known for is a cuisine that is a unique fusion of Nepali and <a href="https://www.nepalitimes.com/review/yes-mughlai-cuisine-can-be-vegetarian/" target="_blank" rel="noopener">Mughlai dishes</a> from northern India. The recipes date back to influences of the khansama brought in from Lucknow by Jung Bahadur Rana after the Indian Mutiny in 1857. These Muslim chefs worked with the baje and bajai in the Rana palaces (although strictly not in the same kitchen), perfecting the fusion cuisine that evolved into the unique Rana flavour.The recipes will soon be out in a new cook book by Rohini Rana, who was born in Agra to the Indian royal house of Awagarh and married to Gaurav SJB Rana, who went on to become Nepal’s army chief from 2012 to 2015.Read also:<a href="https://www.nepalitimes.com/?p=34079&amp;preview_nonce=2924ca6ef5&amp;preview=true" target="_blank" rel="noopener">Exploring Nepal’s culinary diversity,</a> Kedar Sharma and Kiran Sharma<a href="https://www.nepalitimes.com/here-now/tharu-escargots/" target="_blank" rel="noopener">Tharu escargots,</a> Sewa Bhattarai<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f259c7e80680e056e0bjpeg.jpg" alt="" width="1000" height="1351"><figcaption>Rohini “Dolly“ Rana</figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f289c7e80680e056e0cjpeg.jpg" alt="" width="1000" height="1351"><figcaption>Finely sliced steamed bandel with timur ko chope</figcaption></figure>“Growing up as the youngest sibling in one of the most beautiful hill stations in northern India I had an idyllic childhood. I was loved and, I admit, slightly pampered,” recalls Rohini Rana, whom friends and relatives all call ‘Dolly’. “Summers in Nainital were endless lunches and dinners with tables piled high with food.”Breakfasts were spent discussing the day’s menu, with each member of the family picking a dish to cook. After coming to Kathmandu, Dolly adjusted quickly to the new Rana household, also bonding with the kitchen staff.Her husband, Gen Gaurav Rana, is the great grandson of Prime Minister Chandra Shumshere Rana and is the seventh generation of the family serving in the Nepal Army. Dolly accompanied her husband on various military postings internationally, and to remote regions of Nepal.Read also:<a href="https://www.nepalitimes.com/here-now/the-superfoods-of-the-andes-and-the-himalaya/" target="_blank" rel="noopener">The superfoods of the Andes and the Himalaya,</a> Sonia Awale<a href="https://www.nepalitimes.com/here-now/satisfying-trekker-appetite-for-adventure/?preview_nonce=d05c21ba9f&amp;preview=true" target="_blank" rel="noopener"> Satisfying trekker appetite for adventure,</a> Sanghamitra SubbaDolly Rana wrote the first draft for her Rana cookbook while her husband was posted in Suparitar Army Base in Hetauda nearly 30 years ago, where they lived in an old Rana house in the middle of the forest. Many of the recipes in her book were perfected by her husbands’ nanny, Chiniya Champa Didi, who started working at age 15 in the Baber Mahal palace, where her father was a retainer. Though her job was to raise the young Gaurav Rana, she was interested in cooking and learnt the dishes from other maids and cooks.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141152/636a5f2a9c7e80680e056e0djpeg.jpg" alt="" width="393" height="377">Rana cuisine incorporates and builds on the basic dal bhat staple of rice, lentil soup, meat and vegetables, adding a unique aroma and taste from the jimbu and timur that differentiate the Nepali rice dish from Indian food. While north Indian cuisine is noted for its rich and thick gravy, Nepali food comes with lighter jhol, dry bhuttan and kawaf.Read also:<a href="https://www.nepalitimes.com/opinion/much-more-than-dal-bhat/" target="_blank" rel="noopener">Much more than dal bhat,</a> Anil ChitrakarDolly collected and documented recipes from Rana prime minister families, with each having a slightly different twist and taste to the basic dishes. The book will soon be published by Penguin Random House.“It is very important to preserve the dishes for posterity because the cuisine is part of our heritage, and it is in danger of disappearing with the passing of generations,” says Dolly Rana, refusing to divulge the exact recipes.“You will have to wait for the book,” she smiles.Read also: <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/could-nepali-cuisine-go-global/" target="_blank" rel="noopener">Can Nepali cuisine go global</a>, Thomas Heaton

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Food of the royals

https://www.youtube.com/watch?v=DCFOm5hrVcc&amp;feature=youtu.beNepalis are used to chillies. Our fiery akbare are legendary for setting mouths on fire. But even macho locals with a high tolerance for the hot stuff will raise the white flag and surrender to the Naga Viper.With a high 9 on the Scoville Scale the bright red peppers are supposed to be 500 times more potent than jalapeño, and were even listed in the Guinness Book in 2011 as the world’s hottest chillie. Vipers are vital ingredients at the Dzoukou Tribal Kitchen’s brand new franchise in Thamel.     Read also: <a href="https://www.nepalitimes.com/review/gods-own-cuisine/" target="_blank" rel="noopener">God's own cuisine</a>, Sewa Bhattarai <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a29fe9c7e80680e0458f8jpeg.jpg" alt=""/><figcaption>Photos: MONIKA DEUPALA</figcaption></figure>Owner Karen Yaptomi (pictured above) is from Nagaland and now has a string of restaurants in Delhi and Kathmandu. In jest, our one piece of unsolicited advice to her was to install fire extinguishers at her restaurant because the Vipers are so fiery. It was a disaster that Yaptomi landed up in Nepal, but not in the way you might think. She had come to Kathmandu in 2015 with friends from northeast India to raise funds for earthquake victims through a series of concerts with her friend, Nepali singer Abhaya Subba.   <img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a2a019c7e80680e0458f9jpeg.jpg" alt="">"I was in Delhi, Nepal was so near and I had never been here. So I decided to make a trip up," recalls Yaptomi, who explored the local market in Asan and was struck by the familiarity of it all. Bamboo shoots, dry fish, timur (Sichuan pepper) and niguro (fern) reminded her of Nagaland. While the similarities excited her, she was even more intrigued by what could not be found in the local restaurant scene: no restaurants serving ethnic cuisine from India’s northeast. Through her music network, Yaptomi was offered a terrace space in Thamel, and that is how Dzoukou Tribal Kitchen came into being.  <img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a2a059c7e80680e0458fajpeg.jpg" alt="">"I did not come here with the intention of opening a restaurant, but one thing led to another and I thought I would take that chance,” she says.Even though she lived most of her life in Delhi, Yaptomi made frequent visits to Nagaland where her mother taught her the traditional food of her people. Nagas eat pork, rice and vegetables with pickles twice a day, and that staple is what she serves at the restaurant, along with other items from Manipur and Mizoram.The food has a distinct, pungent and exotic flavor which are a result of the cooking style and spicy ingredients. We are invited to the kitchen, where we watch as Yaptomi transforms a piece of pork with timur, a basil variant called napa, fern and fermented soya to make a succulent accompaniment to rice. There is hardly any fat or oil, so it is a healthy and heady mix – with the taste and flavour coming through loud and clear.    <img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a2a099c7e80680e0458fbjpeg.jpg" alt="">Yaptomi has difficulty finding the right kinds of dry fish, so she sources many of the ingredients from Nagaland. Even the décor is from her home state with bamboo ceiling, walls, wooden tables and straw mats. Kettles and other utensils are also from Nagaland.  With no formal education in hotel management, Dzoukou Tribal Kitchen is purely a labour of love. And it was by sheer chance that she even got into the restaurant business. Once, she invited 30 friends home and spent the whole day cooking. The guests all raved about the food, and suggested she open a restaurant. Which she did. The rest is her story. <img width="5616" height="3744" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110811114/636a2a0c9c7e80680e0458fcjpeg.jpg" alt="">Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/could-nepali-cuisine-go-global/" target="_blank" rel="noopener">Could Nepali cuisine go global?</a>, Thomas Heaton

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Northeast Indian cuisine is a hot new sensation in Nepal

https://www.youtube.com/watch?v=c-EPzTXSikw&amp;feature=youtu.beSandwiched between two culinary monoliths, it’s no wonder <a href="http://archive.nepalitimes.com/news.php?id=3918#.W2AZ0dUzbIU" target="_blank" rel="noopener">Nepal’s cuisine</a> can’t be found on as many corners of the globe as omnipresent Chinese and Indian restaurants.Nepal has its own hybrid foods: Nepali-Indian or Nepali-Tibetan and this guarantees the best of both worlds. It fuses together Szechuan pepper, Indian spices, dumplings, bamboo shoots, but the real question is why few seem obsessed with Nepal’s Himalayan spice?Read also: <a href="https://www.nepalitimes.com/?p=10616&amp;preview=true" target="_blank" rel="noopener">Nepalis binge on junk foods the West rejected...</a>, Duksangh Sherpa<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902c29c7e80680e037c81jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo: JYOTI PATHAK</figcaption></figure>Nepali Times put the question to one of the Momo Sisters, Pragati Sunwar. She is one part of the London-based Nepali food vlogging duo, and replies: “To promote Nepali food, we need to bring it to the high street.”The reality is that overseas, Nepali food is mostly catered to Nepalis only. And the country’s culinary treasures are buried under piles of Indian dishes in an effort to get local bums on seats. In the UK, it’s assumed Nepali cuisine is highly similar to Indian, even though you know, and we know, it is different.“There are regional varieties of Indian cuisine. And there are regional varieties of Nepali foods, too. We have Newari, Thakali cuisines, and we just need to be confident about what we are doing,” adds Sunwar.<a href="http://archive.nepalitimes.com/news.php?id=2257#.W2AbrNUzbIU" target="_blank" rel="noopener">Momos</a> have made it all over the mundo, but there is a very slim chance of finding a bara, or laphing on a menu overseas.Jyoti Pathak, who lives in New York, wanted to change this with her acclaimed <a href="http://archive.nepalitimes.com/news.php?id=14737#.W2ALqGaB1TY" target="_blank" rel="noopener">cookbook Taste of Nepal</a>. Living in one of the gastronomical centres of the world, she does not see much of a chance of Indian and Chinese cuisine being dislodged any time soon.However, she says that as the size of Nepali diaspora expands, Nepali and Himalayan restaurants are popping up in most large US cities. The challenge is for Nepali food items to appeal to a larger public.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902c59c7e80680e037c82jpeg.jpg" alt="" width="400" height="494">“Visitors and tourists who have spent time in Nepal have come to understand the virtues and its diversity, and many tell me that they appreciate the freshness and healthy aspect of our food,” Pathak told Nepali Times.The other reason for her book was that she could not find any firm records on Nepal’s culinary heritage. Perhaps recipes are at risk of being lost too, given the change she has seen when visiting Kathmandu annually since moving to the US several years ago.Particularly in Kathmandu Valley, Pathak finds people’s tastes are changing, despite the virtues of Nepali cuisine with its unique flavours, health and family traditions.“Momos, KFCs, pizzas, burgers and northern Indian cooking are getting more popular, and urban populations are eating more processed, packaged foods,” Pathak notes, while adding that much of the countryside food habits have not changed much.Read also: <a href="https://www.nepalitimes.com/?p=10611&amp;preview=true" target="_blank" rel="noopener">Living to eat</a>, Aruna Uprety<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902c79c7e80680e037c83jpeg.jpg" alt="" width="400" height="531">The nature of Nepali recipes makes it an oral tradition, passed down from one generation to the next. Which is why cookbooks and food videos are needed to preserve its culinary culture.Another book is Nepali Home Cooking for Healthy Living by Sharada Jnawali, who says the influx of global foods, and an increase in the purshasing power of the young has resulted in more inroads by outside foods.Ingredients now marketed as the most beneficial health-wise, as interest increased overseas, have always existed in Nepal’s cuisine: barley grass, wheat grass, fermented foods, amaranth and vitamin-rich items.Pragati Sunwar says Nepali cuisine could become more popular if its health benefits were better known, and she hopes to open a restaurant by changing the formula for Nepali restaurants from a number of afterthoughts on a menu to wholesome and attractive items.“If you showcase it, and make it in the right way, I think it will be amazing,” she says.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902c99c7e80680e037c84jpeg.jpg" alt="" width="1239" height="760"><figcaption> </figcaption></figure>

Could Nepali cuisine go global?

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>.