Basking in a golden sunset reflected off Machapuchre, guests gather in the courtyard of Hita Sharma’s house in Ghandruk for a party. In the kitchen, Sharma is sorting through a nanglo filled with freshly picked niguro fern as strips of mutton sizzle away in a pan. Cucumber, radish, and greens from her vegetable garden have been chopped neatly, and laid out.&nbsp; Sharma lost her husband when she was 23, and overnight became a single mother raising two children and an elderly father-in-law. All she knew was how to farm the terraces on the steep slopes nearby.&nbsp; Her family has lived here in the Gurung village on the <a href="https://nepalitimes.com/here-now/trekking-in-the-time-of-climate-change">Annapurna trekking trail</a> for generations, she speaks the local language and is familiar with the community’s customs. But unlike her Gurung neighbours, she was not involved in the tourism industry in a town that gets 175,000 Nepali and foreign trekkers every year. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_7b6b49e2257264a87add62ccdd2a3d528096b934acd7154f9f51ec89efa50387.jpg" data-media-id="editor_1" data-image-id="20241004111044_7b6b49e2257264a87add62ccdd2a3d528096b934acd7154f9f51ec89efa50387" data-rendition-name="original" width="4160" height="1972" loading="lazy" alt="Gandaki Pronince prosperity NT"> </figure>  “Everyone ran hotels, homestays or businesses, while I was alone with two young children,” says Sharma, who was also convinced by her neighbour Harimaya Gurung to <a href="https://nepalitimes.com/here-now/home-away-from-home-in-nepal">start a homestay</a>. Ghandruk had just been connected to Pokhara by road in 2016, and the flow of tourists was increasing.&nbsp; A decade later, Sharma’s homestay is a thriving. The loans are paid off, her son is a chartered accountant in Pokhara, and her lab technician daughter is settled in Japan. “They have made me forget all the hardships I faced to get here,” beams Hita Sharma.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_2e59e9200b7fdb74ff993777e15a2e0fab0ec38b0b41436d5b9ddbaabc4ba434.jpg" data-media-id="editor_3" data-image-id="20241004111044_2e59e9200b7fdb74ff993777e15a2e0fab0ec38b0b41436d5b9ddbaabc4ba434" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Gandaki Pronince prosperity NT"> <figcaption>Hita Sharma</figcaption> </figure>  Gandaki is number one among Nepal’s seven provinces in the Human Development Index, even higher than Bagmati, where Kathmandu is located. But even more surprising is that rural parts of the province, like here in Ghandruk, are even more prosperous than towns like Pokhara. Only 12% of the population of Gandaki is below the <a href="https://nepalitimes.com/editorial/not-rising-nepal">poverty line</a>, much lower than the national average of 21%. In total, Gandaki has only 5% of Nepal's poor, lowest among the seven provinces.&nbsp; Just a decade ago, the story was different. In 2011, the poverty rate in Gandaki was higher than the national average at 28%.&nbsp; “We recalculated the results of the survey to see if there was a mistake, but the data was sound,” says Hem Raj Regmi of the National Statistics Office. “The rural areas of Gandaki province have leapt ahead in prosperity.” TOURISM  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_f72ee29e5b82e52b3aa8d253e31436a551fb6a75e3d8b26f2d3bb357d839f39b.jpg" data-media-id="editor_5" data-image-id="20241004111044_f72ee29e5b82e52b3aa8d253e31436a551fb6a75e3d8b26f2d3bb357d839f39b" data-rendition-name="original" width="800" height="523" loading="lazy" alt="Gandaki Pronince prosperity NT"> </figure>  <a href="https://nepalitimes.com/opinion/how-nepal-can-avert-an-economic-crunch">Tourism and remittances</a> from those abroad are the main factors. The incoming cash has had a multiplier effect on downstream sectors like vegetable and poultry farming, manufacturing and schools. “The villages of Gandaki have always been more prosperous than elsewhere,” notes Nepal’s former finance secretary Rameshore Khanal. “But tourism definitely played a prominent part.”&nbsp; Apart from 656 hotels in cities like Pokhara, there are 342 rural homestays across Gandaki, and the provincial government provides Rs1 million subsidy to open new homestays benefiting many families who have rooms empty because so many members are abroad. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241005031032_973542d98efc075f5e9e6d5ddd8f0c42ada74bbbd1d2ff7124c4e9aab9a1d5bc.jpg" data-media-id="editor_7" data-image-id="20241005031032_973542d98efc075f5e9e6d5ddd8f0c42ada74bbbd1d2ff7124c4e9aab9a1d5bc" data-rendition-name="original" width="985" height="669" loading="lazy" alt="Gandaki province map"> </figure>  More than half of Gandaki’s tourism-centered businesses are in rural areas like Ghandruk, Ghorepani and other villages along the <a href="https://nepalitimes.com/here-now/peak-season">trekking trails</a>. Nearly three-fourths are female-owned. “The villages of Gandaki are famous tourist destinations, and domestic visitors kept most homestays in business when foreign arrivals fell during and after Covid. This has maintained employment and income levels,” says Krishna &nbsp;Chandra Devkota of the Gandaki Province Policy and Planning Commission.&nbsp; Although tourism has now become the main source of income, the backbone of Gandaki’s rural economy has always been farming.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_4f6d6a79280fc85a91b9c2528d8816983f543760c781fbfb1d58ebcd2fe8e039.jpg" data-media-id="editor_9" data-image-id="20241004111044_4f6d6a79280fc85a91b9c2528d8816983f543760c781fbfb1d58ebcd2fe8e039" data-rendition-name="original" width="3000" height="1688" loading="lazy" alt="Gandaki Province prosperity NT"> </figure>  “Agricultural prospects were always good in Lamjung, Tanahun, Kaski and Syangja districts because of community irrigation systems,” explains Khanal. Indeed, while a little over 60% of Nepali households are engaged in agriculture, in Gandaki it is 64%.&nbsp; A robust irrigation system means that <a href="https://nepalitimes.com/here-now/helping-farmers-who-help-themselves">Gandaki’s farms</a> are insulated from droughts and the impact of climate breakdown. Unlike other provinces Gandaki produces enough rice, maize, and wheat to wholly meet its own demand.&nbsp; REMITTANCE  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_44b122c3bbff125b4eb3137f74b327c403d38786549707d5a51f1932e47e99b2.jpg" data-media-id="editor_11" data-image-id="20241004111044_44b122c3bbff125b4eb3137f74b327c403d38786549707d5a51f1932e47e99b2" data-rendition-name="original" width="2976" height="1984" loading="lazy" alt="Gandaki Pronince prosperity NT"> </figure>  Gandaki’s literacy rate is 83.4% (nationally it is 77%) and has always been historically higher than elsewhere in Nepal, except Bagmati. Better education has increased employment prospects both domestically and abroad, and higher earnings means greater inflow of remittances.&nbsp; Gandaki Province has always been the<a href="https://nepalitimes.com/editorial/in-the-line-of-fire"> recruitment centre for soldiers in the British and Indian Armies</a>, and many families of Gurkha veterans have settled down in the UK and send money home to their villages. &nbsp;Maya Timsina, a member of the Provincial Planning Commission in Pokhara, says: “I would put remittances as main factor in reducing poverty in Gandaki.”&nbsp; On average, each household in Gandaki receives Rs215,000 in remittances every year, compared to the national average of Rs145,093. Villages in other provinces are far behind Gandaki in inflows.&nbsp; Former Finance Minister Surendra Pandey says that Gandaki’s ‘Lahure’ tradition of joining foreign militaries has contributed greatly to higher remittances. “Today, soldiers have been largely replaced by migrant workers, but even they earn more than workers elsewhere because of better education and skill sets.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_7f6bcf53b00b963b02ad78b8bda739941a82f66644e6f9c7b7c1b68167b5f533.jpg" data-media-id="editor_13" data-image-id="20241004111044_7f6bcf53b00b963b02ad78b8bda739941a82f66644e6f9c7b7c1b68167b5f533" data-rendition-name="original" width="800" height="533" loading="lazy" alt="Gandaki Pronince prosperity NT"> <figcaption>Photo: SALUTE GORKHA TRAINING CENTER</figcaption> </figure>  Daily wages are also higher in Gandaki at Rs711, when in the rest of Nepal the average is Rs511 per day. The province has traditionally been more entrepreneurial because of its location astride the Kali Gandaki trading route. &nbsp;&nbsp; Residents of Gandaki went to India for seasonal jobs until the 1990s, after which industries evolved in cities like Birganj, Butwal, Bhairawa, Nepalganj, Kathmandu, and Biratnagar.&nbsp; But while there is an industrial park in Pokhara, Gandaki province still does not have a major <a href="https://nepalitimes.com/review/post-lockdown-comeback-for-nepal-s-industries">manufacturing sector</a>. Experts say people living in the province have been able to achieve poverty reduction despite a lack of industrial development because of the importance of the service sector. COMMUNITY&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_c6fec6f4427b41025f7dc5fb322077b028e1f7da6c023b06928404c11dbbe3d2.jpg" data-media-id="editor_15" data-image-id="20241004111044_c6fec6f4427b41025f7dc5fb322077b028e1f7da6c023b06928404c11dbbe3d2" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="Gandaki Pronince prosperity NT"> </figure>  Homestays have not improved living standards in other parts of Nepal as much as it has in Gandaki Province. For example, only few of the Tharu homestays in the Tarai have done well because of the lack of facilities and promotion.&nbsp; Gandaki has thrived because it has a cohesive community spirit in rural areas. Explains Khanal: “The tradition of coming together, exchanging pleasantries, and discussing problems of the community to find solutions is much more pronounced here.”&nbsp; True, few other places in Nepal are endowed with such <a href="https://nepalitimes.com/news/pokhara-six-decades-ago">stunning scenery</a> as the mountains near Pokhara and that is the main draw for homestay guests. &nbsp; “While individual and community efforts have played important roles in lifting people out of poverty in Gandaki, the state must do its part to help,” says Devkota of the Gandaki Province Policy and Planning Commission.&nbsp; “Private sector investment must be encouraged in the mid-hills, and tourism, agriculture and water resources should all be developed.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241004111044_a48197944613ffd2b960e34a32c8e00c10b3fa643825790bcb750f94eee285fe.jpg" data-media-id="editor_17" data-image-id="20241004111044_a48197944613ffd2b960e34a32c8e00c10b3fa643825790bcb750f94eee285fe" data-rendition-name="original" width="1024" height="615" loading="lazy" alt="Gandaki Pronince prosperity NT"> <figcaption>Community homestay in Kailali's Bhada village. Homestays in other parts of Nepal have not been as successful as they have in Gandaki.</figcaption> </figure>  Nepal was a country of villages until a decade ago, but the categorisation of local units including the introduction of new municipalities has made it mostly urban, at least on the paper.&nbsp; In 2021 a third of Nepal’s population lived in rural municipalities, and 66% in urban areas. In comparison, 83% of Nepalis lived in rural areas, and only 17% lived in municipalities in 2011. However, there has been no infrastructure development in many newly-announced municipalities, which means such local units are essentially still villages. One way to curb the high outmigration rate would be to improve basic facilities in rural municipalities.&nbsp; Some of this is already happening in Gandaki. Because of added income from tourism, and better connectivity, many youth are returning to their villages. This model could easily be replicated elsewhere in Nepal and reduce the <a href="https://nepalitimes.com/news/brain-gain-into-brain-drain">outmigration of young people</a>. Meanwhile in Ghandruk, Hita Sharma’s son urges her to join him in Pokhara, but she has no desire to leave her scenic village where the air and water are clean, and the food is fresh. She tells us: “I have lived here all my life through joys and hardships. Now that things are finally looking up, I will not leave. In fact, it is time for all those who have left their villages to return.” &nbsp;&nbsp; This report was punlished in collaboration with the Centre for Investigative Journalism Nepal (CIJ).

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

thumbnail

viewImage

Prosperous Gandaki is thriving

Just before Dasain this time last year, two young Nepali women were about to leave for Dubai. They were offered jobs to perform at cultural programs, but did not have proper travel documents.
One of them was a friend of Archana Darji, a journalist with our sister publication <a href="https://www.himalkhabar.com/">himalkhabar.com</a>. As <a href="https://www.himalkhabar.com/news/142859">she writes in her blog</a>, it was clear they were being trafficked by a gang of recruiters who had paid off Kathmandu airport immigration.&nbsp;
The girls had to support their families, and were determined to go despite knowing the risks. One of them soon returned because she fell sick, and could not bring herself to tell Darji what the work was in Dubai.&nbsp;
One year later, she has once more paid a recruiter for a job in Dubai, and is about to fly off again.
Most of the focus on overseas remittances gives credit to male migrant workers sending money home. The question around migrant women is often why they go despite knowing about exploitation and abuse.&nbsp;
That is the wrong question. We know why. Instead, we should be asking what can be done immediately to ensure safe migration for Nepali women — both in Nepal and in destination countries.
In 2017, following high profile cases of abuse of women domestic migrant workers in West Asia, the government imposed a <a href="https://nepalitimes.com/opinion/two-decades-of-debate-on-female-migration">blanket ban on female migration</a>. This misguided decision drove recruitment underground, forcing women to take unauthorised channels, increasing the risk of trafficking en route.
Many were stranded in Mumbai or Delhi, and being outside the safety net of Nepali embassies and consulates made their rescue and repatriation difficult.
<a href="https://figshare.com/articles/online_resource/Reducing_Vulnerability_to_Exploitation_of_Nepali_Migrant_Domestic_Workers/26892934?file=48931666">A new study by Brunel University London</a> calls for Nepali women migrants to be given skills-training and language orientation so they can migrate without being trafficked, exploited or abused.&nbsp;
‘The ban overlooks evidence of positive outcomes for Nepali domestic workers and leads to several unintended and damaging consequences,’ the study says, adding there should be ‘concrete reintegration plans for returnee domestic workers at the local level of governance to assure their social, political and economic empowerment’.
The report's author Ayushman Bhagat, lecturer of Political Geography at Brunel, interviewed women including recent returnees in Jhapa. He found them distrustful and angry with the government for making it more difficult for them to migrate.&nbsp;
“Instead of solving structural issues of class, caste, education, these women are having to bear the burden of historical marginalisation,” Bhagat told Nepali Times. “All they want is for their children to not have to lead the same life they did, and migration is the quickest way to their empowerment.”
Many <a href="https://nepalitimes.com/banner/homes-away-from-home">women migrating for domestic work</a> are at greater risk of being cheated by recruiters in Nepal, trafficked en route, and abused in destination countries. Even when they do return bearing the scars of abuse, they leave again out of sheer desperation.
Officially, one in every ten Nepali migrant workers is a woman but many more who are undocumented or migrate to India are not counted. Their <a href="https://nepalitimes.com/here-now/female-migrant-workers-hold-up-half-the-sky">contribution to the economy and family income</a> is rarely acknowledged.&nbsp;
This is hardly surprising, given the marginalisation Nepali women face at home, and the double discrimination women of excluded caste and ethnicities experience in society.
Over the years, the government has flip flopped on women migration, introducing shamefully restrictive and ad hoc gender-insensitive rules. One such regulation (<a href="https://nepalitimes.com/news/nepali-women-protest-proposed-travel-restrictions">later revoked after outrage</a>, pictured) even required <a href="https://nepalitimes.com/here-now/history-of-female-im-mobility-in-nepal">women under 40 to obtain permission letters</a> from male family members and the local government for travel.
Part of the problem is the media’s doom and gloom portrayal of migration that magnifies the negative.&nbsp;
True, there are harrowing cases of abuse and exploitation, and workers are cheated every step of the way, often by their own relatives and recruiters. But Bhagat says there are many other positive outcomes for women workers.
“We must highlight how the women are contributing to society, not everyone is being exploited and frankly to think otherwise is a very privileged mindset,” adds Bhagat.
Nepal’s graduation to middle income country is almost entirely supported by remittances reducing the poverty rate. Many returnees have improved family living standards, and created jobs for other Nepalis.
<a href="https://nepalitimes.com/opinion/labour-mobility/migrating-for-domestic-work">Restrictions and bans never work</a>. Bhagat has some common sense steps to making migration safer for women: &nbsp;
- Invite all women workers to register with Nepali missions regardless of their status with no repercussion.
- Strengthen the capacity of Nepali missions abroad to help workers in need at dedicated service centres.
- Form government-to-government legally binding arrangements for safe migration.
- Thoroughly vet <a href="https://nepalitimes.com/here-now/a-long-way-to-europe">new labour markets</a> and regulate recruitment at the local levels.
Sonia Awale

Safer migration for women

India announced recently that it was ‘close to victory in its fight against poverty’, with only 2.2% of its population living below the World Bank-defined extreme poverty line. Ten years ago, it was 12%. In China, President Xi Jinping announced three years ago that the country had eliminated absolute poverty, after lifting 800 million people out of poverty in four decades. &nbsp; Nepal, sandwiched between the Asian giants, however, has not been able to match the pace of its two neighbours in reducing extreme poverty despite notable progress since 1990. Using the previous poverty threshold, Nepal’s absolute poverty rate theoretically fell from 25.16% in 2011 to only 3.6% in 2023.&nbsp; However, the threshold for per capita expenditure has since been raised from Rs43,000 per year (factoring increased consumption and inflation) to nearly Rs73,000, which means the new 2023 poverty rate rose to 20.27%. This means one in every five Nepalis lives in extreme poverty, and the state’s intervention in poverty reduction, international development assistance, and private sector investment have made little difference in improving living standards. Which begs the question: where has all the money gone? &nbsp; “Those who have opportunity, knowledge and access to resources have benefitted greatly, while farmers and underserved communities have been left further behind,” explains economist Keshav Acharya.&nbsp; The flatline in poverty reduction also raises doubts about the government's investment in poverty alleviation. In the last 11 years, it has allocated more than Rs11 trillion in budget but only a third was spent on capital expenses which helps create jobs, and kickstart the economy. Domestic and international non-governmental organisations have spent more than Rs300 billion in Nepal’s social sector in the last six years. The international community has also poured in $1.5 billion in the past decade, with USAID alone providing Rs200 billion in aid to Nepal over the last 20 years. Private banks and financial institutions have disbursed another Rs4 trillion in loans in the last decade. All this investment should have made a dent in poverty reduction even if the cash was distributed directly to households. But the money and its intended use has rarely benefitted the people who need it the most – driving an increasing number of young Nepalis abroad in search of work. <div class="embed-block"><iframe title="Nepal's province-wise poverty rate" aria-label="Map" id="datawrapper-chart-zng7U" src="https://datawrapper.dwcdn.net/zng7U/3/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="457" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div> Critics say that much of the foreign aid is tied to international consultants, most of it is channelled through INGOs or local NGOs which have high overhead costs and very little of it trickles down to the grassroots. Most of the poorest families in Nepal are trapped in poverty because they rely on subsistence agriculture and cannot work the system to access state services. Non-governmental efforts, on the other hand, mostly have local impact with little upscaling and replication. &nbsp;&nbsp; “The actual hard cash very rarely makes it to the hands of the people who need it the most,” says economist Dilli Raj Khanal. “And the economy has not expanded in proportion to the investment in poverty alleviation. In particular, credit expansion has contributed little to economic growth and poverty reduction.” The 2021 census showed that 57% of Nepali families still depend on agriculture, and the Fourth Nepal Living Standards Survey last year showed that 38% of Nepali families whose primary earner is engaged in farming lives in poverty.&nbsp; This means the household income of farming families in Nepal has not increased due to persistently low productivity, and the agricultural sector has remained stagnant despite the government spending Rs100 billion in subsidies and farm loans over the last five years. Despite studies after studies by the government itself showing that the subsidies do not reach most small-scale farmers, the money keeps being allocated and evaporating along the way. The 2021 census showed that only 7% of farmers received government subsidies. &nbsp; Persistent poverty in Nepal is also linked to skewed land ownership. Over 23% of families who own less than 0.2 hectares of farms live in poverty, while 11.4% of families who have more than two hectares of land are poor. The percentage of landless Nepalis in rural areas is about 16%, and one-third of them live in poverty. &nbsp; In the last decade, Nepal’s economy has been shifting away from farming. Agriculture now accounts for less than 25% of the economy, while the service sector has grown to 63%. This also means the income gap has widened between farmers and others. <div class="embed-block"><iframe title="National poverty rate " aria-label="Interactive line chart" id="datawrapper-chart-DGfm3" src="https://datawrapper.dwcdn.net/DGfm3/1/" scrolling="no" frameborder="0" style="border: none;" width="600" height="400" data-external="1"></iframe></div> The poverty rate is calculated based on the cost of the calories intake per day of a person to lead a healthy and active life. &nbsp;Nepalis require 2,236 calories per day on average, which costs around Rs35,000 annually. But consumption expenditure also has to be factored in non-food costs which include lodging, clothing, and household items, and added up these costs equals the expenditure on food. By this measure, Nepalis who are unable to spend more than Rs200 a day, or Rs72,908 a year fall below the poverty line. &nbsp; The main reason for less-than-expected decrease in poverty is poor delivery and governance failure. Other factors include the 2015 earthquake and the Covid-19 pandemic. The 16th Periodic Plan (2024-29) cites 4% of Nepalis being pushed below the poverty line due to Covid-19. The poverty rate would have been much higher if it was not for money Nepalis working overseas send home. Studies have shown that remittances have led to an increase in household income, access to better education and health services. The 2024 Living Standards Survey showed that 77% of Nepali households receive remittances, two-thirds from relatives working in India or overseas.&nbsp; “No doubt, remittances play a major role in lifting people out of poverty in Nepal, and the state’s economic initiatives have not contributed meaningfully to poverty reduction,” says Khanal. Nepal is soon graduating to middle-income status, largely because of remittances, even though this is not a sustainable long-term insurance against poverty. “Policy-wise, Nepal is moving in the opposite direction in reducing poverty,” says Pushkar Bajracharya, a former member of the National Planning Commission. “Programs and budgets directly meant for poverty reduction like the Poverty Alleviation Fund have been abandoned. And the most significant failure is in job creation.” Bajracharya argues that the government must extend the social safety net to the neediest population to ensure sustainable results in poverty reduction. And since the poorest people are subsistence farmers, that is where efforts must go. &nbsp; <h2>Relying on remittance</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240823120836_6c03c769846a01f0f846235dd54ddc0c0c0dbf61cb0722d729fca14d6a568375.jpg" data-media-id="editor_2" data-image-id="20240823120836_6c03c769846a01f0f846235dd54ddc0c0c0dbf61cb0722d729fca14d6a568375" data-rendition-name="original" width="1750" height="1167" loading="lazy" alt="migrant workers"> <figcaption>Photo: NEPALI TIMES ARCHIVE</figcaption> </figure>  A new report published by the Nepal Rastra Bank has once again reiterated what we all knew — the role of remittances sent by Nepalis working abroad does not just help Nepali households but the national economy as well. What is new in the central bank report is just how much more dependent we as a nation are becoming on remittances every year. In the absence of investment in productive, job-creating sectors, the remittances are mostly used to pay for burgeoning imports of food, fuel and consumer goods. The report, ‘Current Macroeconomic and Financial Situation of Nepal’ for the financial year 2023-24 published on Sunday shows that remittance inflows increased 16.5% to more than Rs1.45 trillion during the past fiscal year. Remittances now make up a quarter of the country’s economy. The record rise in remittances is proportionate to the increase in numbers of Nepalis moving abroad for employment. More than 741,302 Nepalis went overseas to work last year. Among them, 460,103 obtained first-time approval for foreign labour, while 281,199 renewed their permits. The most pronounced impact of the increase in remittances is on Nepal’s macro-economic indicators. It helped make up for Nepal’s Rs1.44 trillion trade deficit last year, and in fact remittance income is almost exactly equal to the trade deficit. Nepal’s foreign reserves have also held strong, standing at $15.27 billion, which is a 30.4% increase from last year and sufficient to cover 13 months worth of imports. The central bank’s usual target is to hold enough foreign currency to cover imports for seven months. The reason for the growth of hard currency reserves is also the drop in imports due to belt-tightening measures, as well as fall in demand due to sluggish domestic economy. The current account also remained at a surplus of Rs221.3 billion during the 2023-24 review year, compared to a deficit of Rs.46.57 billion in 2022-23. A current account surplus means that there is more money coming into Nepal than going out.

Why Nepal’s poverty rate is stuck

More than 2.5 million Nepalis left the country just in the last three years to study and work abroad. In the past year alone, <a href="https://nepalitimes.com/news/push-factors-driving-nepalis-out">nearly 900,000 students and migrant workers flew out of Kathmandu airport</a>. These figures do not include those who crossed over to India.&nbsp;
There were, of course, returnees in that period, but it is estimated that up to 16% of Nepal’s population at any given time is outside the country. Most of them are 20-35 years old, which means an estimated q<a href="https://nepalitimes.com/news/nepals-demographic-window-is-closing">uarter of all Nepalis in that age group are abroad</a>.&nbsp;
It is mandatory for students going overseas to get a certificate from the Ministry of Education, and last year alone 112,593 were issued -- nearly double the pre-Covid figure (graph, below).
Before leaving, Nepali students officially exchanged Rs117 billion last year into hard currency to pay for their education costs. The actual figure through unregulated channels is probably higher.
<div class="embed-block"><iframe title="MORE NO OBJECTIONS" aria-label="Column Chart" id="datawrapper-chart-OBL1y" src="https://datawrapper.dwcdn.net/OBL1y/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="600" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script>All graphs: RAMESH KUMAR</div>
<div class="embed-block"><iframe title="$ in, $ out" aria-label="Column Chart" id="datawrapper-chart-gUPnY" src="https://datawrapper.dwcdn.net/gUPnY/4/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="600" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
Meanwhile, the 4 million <a href="https://nepalitimes.com/opinion/guest-editorial/the-migration-myth">Nepali migrant workers</a> in Malaysia, Qatar, Saudi Arabia, UAE, Kuwait, Korea, Europe and elsewhere sent back through banking channels Rs1.47 trillion in remittances ($11 billion) last year. Actual figures are higher.
“The great irony is that while poorer Nepalis toil in the Gulf and Malaysia to increase our foreign exchange reserves, middle and upper class families are exchanging a part of that money to pay for college fees, travel and medical care abroad,” points out migration researcher Ganesh Gurung.
The numbers going to Australia and Canada dropped last year because of visa restrictions. But that has been more than made up by a 30% uptick in <a href="https://nepalitimes.com/here-now/nepal-s-hard-working-students-overseas">Nepali students</a> going to the US (11,261) and UK (13,339) compared to last year.
But by far the largest number of students are going to <a href="https://nepalitimes.com/banner/why-nepalis-are-flocking-to-okinawa">Japan</a> (34,731) which is also an increase of 30% over the previous year (map, below). Numbers going to <a href="https://nepalitimes.com/news/yo-man-ta-mero-nepali-ho">South Korea</a> doubled in one year to 6,889.&nbsp;
Nepalis go to 66 countries for higher studies, with <a href="https://nepalitimes.com/here-now/looking-for-the-nepali-dream">Denmark</a>, Finland and France becoming more popular, although the numbers are still much lower than the top six.
Till recently, Nepalis were the third largest number of foreign students in Australia. They were number three also in Canada. Nepalis were among the top ten in the US.
<div class="embed-block"><iframe title="TOP 6" aria-label="Grouped Columns" id="datawrapper-chart-mbIyZ" src="https://datawrapper.dwcdn.net/mbIyZ/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="496" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
It is no secret that many young Nepalis leaving on student visas <a href="https://nepalitimes.com/banner/migration-certificate">intend to emigrate permanently</a>.&nbsp;
Countries in the Global North experiencing declining populations know this, but find it a convenient way to allow controlled entry for much-needed workers in the service or tech sectors.
“Many young Nepalis plan to settle in first-world countries eventually, or to return only after 10-20 years,” affirms migration expert Ganesh Gurung.&nbsp;
“Destination countries benefit too, they are getting a new generation of cheap labour without having spent anything on raising or educating them. What’s more, they also earn university fees. It’s a way for them to allow calibrated migration,” he adds.
Nearly half the students coming out of 10+2 schools opt to go <a href="https://archive.nepalitimes.com/regular-columns/Between-the-lines/More-Nepali-students-settle-overseas,528">abroad for higher education</a>, leading to a significant drop in college enrolment across Nepal.&nbsp;
Just like migrant workers are a safety valve that lets the government off the hook from providing jobs at home, students going abroad allows the state to dodge its responsibility to improve higher education quality here.&nbsp;
Indeed, some argue that better universities and colleges in Nepal would not lessen the exodus of young Nepalis, because many of them intend to emigrate for good.&nbsp;
“Yes, student visas have become a means to an end, <a href="https://nepalitimes.com/editorial/hardworking-students">the goal is to work and settle</a>,” says Narottam Aryal of King’s College in Kathmandu. “But more alarming than the figures of students leaving is that we are taking it so casually, calling it normal."&nbsp;
He adds: “Let us not worry about people who will leave anyway, but focus on the students who will stay if Nepal’s higher education is system is redesigned, repurposed and reformed to foster an entrepreneurial mindset so they benefit the country.”&nbsp;
<div class="embed-block"><iframe title="Where We Went" aria-label="Map" id="datawrapper-chart-edwh9" src="https://datawrapper.dwcdn.net/edwh9/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="550" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
The method of education in state-run colleges and universities are still stuck in the era of rote learning taught by under-motivated teachers using outdated curricula, regurgitating memorised answers at exam time. The university environment is politicised and there are frequent disruptions with delayed exam results.
One way to change this is twinning with international universities, but for this there has to be a less xenophobic and transparent government machinery that is open to new methods.
“Accreditations, partnerships and exchanges with institutions around the world will open up opportunities for students,” says Aryal. “The government should welcome foreign universities, they will force us to raise the standard of our education.”
Information technology and <a href="https://nepalitimes.com/here-now/grass-is-greener-overseas-for-nepals-doctors">medicine</a> are among the most lucrative options for Nepali students abroad. Institutions of higher learning in Nepal itself could specialise in inter-disciplinary liberal arts, social studies, agriculture and the environment, public health, hospitality, or heritage studies.&nbsp;
Youth are also leaving because there is no guarantee of jobs even when they get a higher degree here. <a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain">The informal sector</a> is still the biggest employer, and job options in private companies and civil service are limited.&nbsp;
Ganesh Gurung says the education sector must adapt to the changing labour market such that Nepal produces skilled human resources in the areas with high demand like <a href="https://nepalitimes.com/here-now/nursing-grievances-against-the-state">nursing</a>.
He adds, “The focus must be on our strengths. The economy can be revived by making the best use of Nepal’s natural beauty to generate jobs in the hospitality industry, and turn it into a <a href="https://nepalitimes.com/news/go-away">destination for international retirees</a>.”&nbsp;

Sonia Awale

Brain gain into brain drain

In the past year, about 260,000 Nepali workers flocked to Malaysia to work in factories, service stations, and palm and rubber plantations. A similar number were &nbsp;preparing to go in the coming 12 months.
But the Malaysian government has abruptly capped the proportion of foreign workers in its labour force to 15%, and will stop issuing worker visas after May.
Making up more than one-third of all departures last year, <a href="https://nepalitimes.com/here-now/the-malaysia-nepal-migrant-scam-nexus">Malaysia is the top overseas labour destination for Nepalis</a>, An estimated 500,000 are working there. Now, many Nepalis may choose to overstay, &nbsp;and join the ranks of their undocumented compatriots.&nbsp;
The reliance of Nepal’s economy on remittances is precarious. West Asia has nearly 2 million Nepali workers, and is chronically gripped by regional tension. A populist anti-migrant wave is sweeping Europe. Donald Trump has vowed to deport illegal immigrants if re-elected.&nbsp;
How will Nepal accommodate a future surge of returnees? The National Planning Commission, the Labour Ministry and other branches of government must start preparing for this contingency, if they have not already. Maybe, just maybe, they could turn a potential disaster into a dividend.
Short, medium and long-term strategies need to be in place to make the best of returning migrants. Most immediately, returnees from Malaysia and those affected by its visa curb need to be accommodated before they start knocking on the doors of recruiters for jobs in the Gulf or Europe.&nbsp;
The homecoming of semi-skilled Nepalis with overseas exposure <a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain">can be turned into a national asset</a>. Many returnees have worked in modern agriculture and factories. They have picked up and honed new skills at construction sites, and they have excelled in the service industry.&nbsp;
Many will be returning with hard-earned savings and dreams of running their own enterprises. Local governments must provide them support to re-assimilate, encourage their entrepreneurial spirit, and identify outlets for their skills and investment. &nbsp;
When the subject of migration and remittance comes up, Nepali politicians and media tend to forget that there are 2.5 million Nepali workers in India. Most are seasonal migrants who cannot even afford recruitment fees to ‘manpower’ agencies.
And as we saw during the Covid lockdowns, hundreds of thousands of Nepalis <a href="https://nepalitimes.com/here-now/nepali-workers-returning-to-india">were sent back from India</a> under dire circumstances, harassed and stigmatised on both sides of the border. Nepalis in India may not remit as much money as from elsewhere, but they constitute the largest population of Nepali migrants abroad.&nbsp;
Construction jobs in Kathmandu and other cities are increasingly filled by domestic migrants from the mountain districts. Interestingly, many semi-skilled jobs in construction in Kathmandu Valley are taken up by Indian migrant workers. Nepal, in fact, is the seventh-largest source of remittance for the Indian economy.&nbsp;
That statistic alone proves that there is work for Nepalis in Nepal itself. If the economy picked up, if Nepalis got more meaningful wages, if labour rights were protected, if they got help to start up businesses, many would prefer to stay in Nepal. &nbsp;
That is a lot of if’s, for sure. But it is possible with the right policies and the political will to implement them.&nbsp;
Last week, we published an investigation into Nepali recruits into the Russian Army. <a href="https://nepalitimes.com/here-now/nepalis-play-russian-roulette-in-distant-war">At least 39 Nepali soldiers of the estimated 2,000 who enlisted have been killed in action on the Ukraine front</a>. Families in Nepal are demanding the return of their bodies. After loopholes in migration routes were uncovered last year, the government banned work permits for Russia.&nbsp;
Inexplicably, on Wednesday the Ministry of Labour re-opened labour permits for Russia knowing fully well that many will end up enlisting into the military again. Labour Minister Dol Prasad Aryal, who already has a conflict of interest because of his involvement in recruitment and remittance agencies, has to explain why his office has allowed this at a time when his cabinet colleague Foreign Minister Narayan Kaji Shrestha is demanding that Russia send Nepali soldiers home.
Successive governments in Nepal have treated foreign employment as a safety valve, and a cover for their <a href="https://nepalitimes.com/news/poor-cash-rich-nepal">failure to kickstart the economy</a>. Worse, many politicians and bureaucrats are in cahoots with recruiters and profit from the blood, sweat and tears of desperate Nepalis.&nbsp;
A Marshall Plan for investment in infrastructure would be the most effective long term strategy. It would produce jobs during their construction, and generate more multiplier employment downstream as connectivity, a revived agro-economy and cheap surplus energy revs up the economy.&nbsp;
Sonia Awale

Homecoming

Nepal is not poor, it is just poorly governed. At no time has this been more true than today.
<a href="https://nepalitimes.com/business/remittances-up-and-up">A spurt in remittances</a> and a slowdown in imports has meant that Nepal’s foreign exchange reserves have hit an all-time high of $14 billion. Just in the past seven months, diaspora dollars totalled $6.35 billion – a 21.6% increase over the same period last year. The trade deficit has declined, and the balance of payments situation is improving.
So why are we not celebrating? The problem is that while the macroeconomy is on a firm footing, the same statistics also point to a deep malaise within. Imports are down because purchasing power has declined, and banks are not lending, this means government revenue has also fallen drastically. Most remittance money is spent on household expenditure, much of it again to pay for imports.&nbsp;
All this means <a href="https://nepalitimes.com/opinion/killing-investment-in-nepal-in-10-easy-steps">investment</a> fell by 11% in 2023 after growing by nearly 4% the year before. Tighter financing conditions post-Covid and global factors following the Ukraine war have impacted both public and private investment.&nbsp;
“Nepal’s economy grew at 1.9% fiscal year 2023. Is that too low? Yes, very low. Are we in an economic crisis? No. But we are stuck in a situation where aggregate demand is low. Nepal is in a crisis of low economic growth,” says economist Sameer Khatiwada.
Indeed, banks have money to lend and borrowing rates have gone down, but there is no demand from the private sector because a large chunk of the middle class has<a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain"> left the country</a>.
And that is the irony: Nepalis are migrating abroad in droves, but fewer consumers back home means less economic activity, which in turn pushes more people out. Nearly a million young Nepalis left for jobs and study overseas last year. More than 400,000 left on work permits in the first seven months of this fiscal year. Some 3,000 leave every day.
The economy could pick up in 2024 and 2025, with increased demand, increased <a href="https://nepalitimes.com/news/blueprint-for-nepal-india-electricity-trade">hydropower</a> output, and rising tourist arrivals. But sustaining growth year-on-year relying solely on remittance and hydropower is not possible.&nbsp;
Remittances were the main reason for poverty reduction, raising living standards, improving access to health, nutrition and education. Nepal is set to graduate from LDC status by 2025.
Nepal’s economy is suffering a form of ‘Dutch Disease’ where high income from one source paradoxically keeps other sectors of the economy down. Remittance growth has increased savings, but there is nowhere to invest it except to speculate on the real estate bubble, which has burst.&nbsp;
Economist Khatiwada says we have to go beyond the symptoms to the disease: “Nepal is caught in a trap of low productive capacity, lack of competitiveness, lack of foreign investment and lack of business dynamism.”
So, what is the way out? Experts recommend more competition in the private sector and promoting industrialisation by leveraging areas where Nepal has a comparative advantage like the service sector, <a href="https://nepalitimes.com/news/it-is-it">information technology</a> and exports of high-value niche products.&nbsp;
“We were complaining when our foreign exchange reserves were low, and now we are complaining when reserves hit the roof. Our biggest problem is that we are sitting on all that money instead of investing it,” says Sujeev Shakya of the Nepal Economic Forum.&nbsp;
He adds: “We have to allow Nepali companies to invest outside, and reap the low-hanging fruits like energy and ICT. Nepal exported $900 million worth of software last year.”&nbsp;
If there was some hope the change in the coalition government last week would bring solutions, those have fizzled. Finance Minister Barsaman Pun is Prime Minister Dahal’s left-hand man and Dahal’s disagreement with former coalition partner Sher Bahadur Deuba of the Nepali Congress to sack its finance minister Prakash Sharan Mahat was one reason behind the Maoists switching to the UML.
Finance Minister Pun is already under a cloud for <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">his alleged involvement with a gold smuggling ring</a>, and he has reportedly been brought in with the express purpose of passing a budget that would be favourable to cronies. There are indications he will raise taxes on certain brands of electric vehicles, ostensibly to increase government revenue.&nbsp;
With the new government’s priorities so centred on personal and partisan gain, there is little time to solve the other crisis: underspending of the development budget. There is money for infrastructure and service delivery, we just cannot seem to spend it. Only 25% of the annual development budget has been spent in the past seven months of this fiscal year.
Delays in infrastructure and connectivity have further undermined economic growth and job creation.&nbsp;
Underspending is directly related to corruption. Public procurement is lubricated by kickbacks, and delays are caused by rival cronies with <a href="https://nepalitimes.com/editorial/need-and-greed">political patronage</a>. The focus is on low-cost bidder and not on the technical quality of bids. Contractors abandon half-finished projects by bribing officials.&nbsp;
In short, Nepal’s crisis of low economic activity is directly related to governance failure and lack of accountability of high elected officials. The new coalition has a chance to set things right at the third Nepal Investment Summit on 28-29 April in Kathmandu. But experts do not pin much hope on it. &nbsp;
“No matter how many laws and regulations we revise to make doing business easier in Nepal, unless we have better infrastructure we will not be able to attract foreign investors to Nepal. Second, soft infrastructure such as skills and quality of the workforce is also a critical ‘pull’ factor,” says Khatiwada.&nbsp;
Shakya takes a broader view: “It all really comes down to our mindset. We think of Nepal as a small, poor country but it is a potential $100 billion economy. We must have that imagination, must take risks, reform how we do business, break away from commission-oriented, rent-seeking approach.”

Poor cash-rich Nepal

In 2023, Nepalis made up the third fastest-growing student population in Canada. There were 20,465 Nepali study permit holders, up from 7,680 the year before, an increase of 166% in just one year.
Of <a href="https://nepalitimes.com/here-now/nepal-s-hard-working-students-overseas">Australia</a>’s 26 million population, Nepalis account for over 300,000. Another 51,000 are in Portugal, making Nepalis among the biggest immigrant groups in the south Europe nation.
Every day, 3,000 Nepalis leave the country, and nearly 1 million left last year. Migrant workers in the Gulf, Malaysia and India mostly return. But a majority of Nepali youth leaving for the United States, <a href="https://nepalitimes.com/opinion/europe-now-favoured-destination-for-nepalis">Europe</a>, Canada or Australia are emigrants.&nbsp;
Successive governments in Nepal have failed to stop this brain (and brawn) drain, treating migration as a convenient social safety valve and relying on <a href="https://nepalitimes.com/editorial/high-risk-remittance">remittances as a critical source of support for the economy</a>. &nbsp;&nbsp;
Nearly a quarter of Nepal’s GDP equivalent comes from overseas remittances, higher than most labour-exporting countries. This is an indicator of a stagnant economy. &nbsp;Most of the money goes into paying for basic needs, and property investment. &nbsp;&nbsp;
At the 11th Nepal Literature Festival last week (pictured) economist <a href="https://nepalitimes.com/here-now/nepal-needs-to-rebrand-itself">Swarnim Wagle</a> and urban planner <a href="https://nepalitimes.com/here-now/miss-nepals-mission">Shrinkhala Khatiwada</a>, both Havard-educated returnees, tried to answer the difficult question of how the diaspora can contribute to Nepal.
Nepalis have always migrated. A life of sub-subsistence farming in the mountains was hard, there was exclusion and inequity, and many fled loan sharks. Often, the only alternative was to fight and die in other people’s wars.&nbsp;
The Nepali word ‘lahure’ comes from the <a href="https://nepalitimes.com/here-now/nepal-and-the-taliban-s-second-coming">British cantonments in Lahore</a>, where Nepali fighting men went after being recruited ever since the 1814-16 war. Nepalis have fought in most major wars, and hundreds are currently in the Russian Army. Some are also in the Ukrainian military.
Today, Nepal exports more workers than warriors. The number of migrants is increasing because the economy just cannot produce enough jobs for the 500,000 young men and women joining the workforce every year. &nbsp;
“For most aspirational middle-class Nepalis, <a href="https://nepalitimes.com/review/nepal-s-remittance-villages">migration</a> is the only outlet,”acknowledged Wagle. “Frustration adds to this, there are long queues to pay taxes, get a driver’s license…and then there is the huge wage disparity between Nepal and elsewhere.”
Young Nepalis still in high school already think the country’s situation is hopeless and there is peer pressure to leave the first chance they get. Parents themselves want their children to settle abroad, and sell what little property they have or take high-interest loans to pay recruiters to send them off. The push-factors are not just economic.&nbsp;
In reality Nepal has made <a href="https://nepalitimes.com/editorial/not-rising-nepal">some dramatic progress</a> in health, education, poverty and development, although improvements are not evenly spread around the country. Young Nepalis are leaving without ever having truly lived and worked here.&nbsp;
In rural Nepal, families are paying up to Rs7 million to human traffickers to take their children to America through the backdoor. &nbsp;
The biggest frustration is the lack of well-paying meaningful jobs, and this is where the private sector could help.&nbsp;
Noted Khatiwada: “It is not the government’s job to create jobs but strengthen the private sector to do so. The private sector is responsible for 80% of jobs in the country and that is still not enough.”
She added that the private sector does not necessarily mean big companies, and they need help to grow and create jobs. She added, “Only when people have economic stability and security will they come back home.”
On return, Wagle joined politics, first the NC then the RSP “to deliver results and make the government accountable”.&nbsp;
The Tanahu MP breaks down the <a href="https://nepalitimes.com/editorial/50-diaspora-diaries-in-nepali-times">Nepali diaspora</a> into three groups. First, Nepalis now permanent citizens of other countries who need to be engaged culturally to keep their links to Nepal.&nbsp;
Next are global Nepalis, who are abroad but still want to do things in Nepal. They can contribute through digitisation and IT, clean energy, high-value agriculture and tourism.
Third, are migrant returnees who come back with limited savings and skills, and who need help so their entrepreneurial dreams can take root and prosper so they do not have to leave again.&nbsp;
To this we can add that Nepal’s politicians must go another step and reform election laws so that Nepalis abroad also have voting rights. The established parties do not want to risk doing this, since they know the diaspora vote may unseat them.&nbsp;
In this paper, we have frequently profiled role models who have returned to Nepal and done well including a <a href="https://nepalitimes.com/here-now/milking-every-opportunity">Korea returnee who started a modern dairy farm in Gulmi</a>. There are others like the aspiring bell pepper farmer in Dang who left a lucrative Wall Street job. A Kavre native who gave up his Canadian PR to run a resort in Pokhara. There are many like them.
And there are people like Swarnim Wagle and Shrinkhala Khatiwada who aspire to give back to Nepal what Nepal gave to them. &nbsp;
Sonia Awale

Brain drain into brain gain

<a href="https://archive.nepalitimes.com/article/nation/dasain-goes-global,3950">Dasain homecoming for the Nepali diaspora</a> this year was overshadowed by the <a href="https://nepalitimes.com/here-now/war-in-israel-earthquake-and-grief-in-nepal">killing of 10 Nepalis in a Hamas attack</a> on an Israeli kibbutz on 7 October. One student is still missing. Dasain also coincided with the annual conference of non-resident Nepalis in Kathmandu. Unlike workers, these are Nepalis who have permanent residence abroad, and they seemed more concerned about getting Nepali citizenship papers. <div class="embed-block"><iframe title="Nepalese around the World" aria-label="Map" id="datawrapper-chart-NTCV9" src="https://datawrapper.dwcdn.net/NTCV9/1/" scrolling="no" frameborder="0" style="border: none;" width="800" height="518" data-external="1"></iframe></div> But fear of a widening war in West Asia is the main concern today for millions of other Nepali workers. As the Nepali diaspora spreads across the globe, many find themselves in war zones or caught up in violence. This is not the first time Nepalis have been caught up in conflict. Many migrant workers are living in <a href="https://nepalitimes.com/news/trapped-in-ukraine">active conflict areas like Ukraine</a>. Many of the estimated 4,000 Nepali students there escaped to Poland in February 2022 when the Russians invaded. Some of the others <a href="https://nepalitimes.com/news/nepalis-in-the-russian-army-want-to-quit">enlisted and there are Nepalis fighting on both sides</a>.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231020061024_17d617631aa90dcb31630cb3d33f96d05357c61aa2f60ede57d72aae8aaa3617.jpg" data-media-id="editor_5" data-image-id="20231020061024_17d617631aa90dcb31630cb3d33f96d05357c61aa2f60ede57d72aae8aaa3617" data-rendition-name="original" width="1047" height="1591" loading="lazy" alt="Nepalis trapped in Ukraine"> <figcaption>Nepalis trapped in Ukraine in 2022.</figcaption> </figure>  Only this week, a Nepali mercenary Bibek Khatri fighting with the Russian Army was captured in the Avdiivka by Ukrainians. In a<a href="https://twitter.com/Gerashchenko_en/status/1714955395037278371" target="_blank"> video posted on X </a>by Anton Gerashchenko, Khatri says he joined the Russian military to make money and make his mother proud. To be sure, Nepal’s Gurkha soldiers have fought in most major wars of the 20th century: Flanders Field <a href="https://archive.nepalitimes.com/article/nation/gallipoli-and-the-gurkhas,2271">Gallipoli</a>, Italy, Malaya, Burma, Falklands, Sri Lanka, and are <a href="https://nepalitimes.com/here-now/recruitment-of-nepalis-into-indian-army-paused">deployed on India’s borders</a> with Pakistan and China.&nbsp; But it is in the volatile North Africa-West Asia region where Nepalis find their situation most precarious. <a href="https://nepalitimes.com/from-the-nepali-press/a-girl-from-kathmandu">Twelve Nepalis workers were executed in 2004 by Ansar al-Sunna in Iraq</a>. The Saudi-UAE blockade of Qatar from 2017-2021 affected Nepalis, many of whom lost their jobs. In 2014, some 126 Nepalis were evacuated from war-torn Libya to neighbouring Tunisia with the help of the Indian Embassy in Tripoli. IN 2016, <a href="https://nepalitimes.com/news/canada-settlement-with-families-of-nepali-guards">13 Nepali guards were killed in a Taliban attack on the Canadian Embassy in Kabul</a>. Some of the estimated 2,200 Nepalis, mostly female domestic workers, had to be evacuated after the Beirut blast in 2020.&nbsp; This time the <a href="https://nepalitimes.com/here-now/a-nepali-s-lucky-escape-from-hamas">rescue of Nepali students from southern Israel</a> was swift because they were well-documented students and were easy to track down. The presence of an Israeli embassy in Kathmandu, and a Nepal embassy in Tel Aviv helped.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231020061032_a99482384cb43a14c38a2a146ba3bca21e0a11f24b35ec8949ebb369d0c61685.jpg" data-media-id="editor_12" data-image-id="20231020061032_a99482384cb43a14c38a2a146ba3bca21e0a11f24b35ec8949ebb369d0c61685" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="Nepalis rescued from Israel NT"> <figcaption>Nepalis were rescued from Israel earlier this month following the Hamas attack on a kibbutz where they were working. Photo: SUMAN NEPALI</figcaption> </figure>  “There are two types of Nepali migrants, <a href="https://nepalitimes.com/review/migration-not-a-wish-but-necessity-for-nepalis">those who are compelled to go</a> and those who will leave anyhow. But both need to know about the status of destination countries, and once they get there they must notify the Nepal Embassy of their location in case they need to be evacuated,” says former foreign minister Bimala Rai Poudel. Migration expert Ganesh Gurung says the government should at the very least guarantee the safe return of its workers in the event of a disaster of any kind.&nbsp; Nepal’s Foreign Employment Welfare Fund has collected Rs7 billion over the years from fees paid by people leaving for overseas jobs, and is used in rescue and resettlement of migrants. However, it does not take care of people who do not pay the fee, or do not go through recruitment agencies.&nbsp; Gurung says the facility should apply for all Nepali workers abroad in case they need emergency evacuation. The facility was most useful during the Covid pandemic <a href="https://nepalitimes.com/news/too-many-stranded-nepalis-not-enough-flights">when hundreds of thousands of stranded workers had to be flown home</a>. Nepal’s economy survives on remittances, and money the diaspora sends home <a href="https://nepalitimes.com/news/bada-inflation-at-bada-dasain">has reached record levels this year</a>. “One of the major contributing factors to Nepal reducing its poverty rate was the money that workers abroad sent home,” explains Gurung. “But if more people choose to come back because of increasing geopolitical tensions and conflict, it will have a cascading effect on Nepal’s remittonomics.”&nbsp; Nepal is <a href="https://nepalitimes.com/editorial/high-risk-remittance">heavily reliant on remittance money</a> because other sectors are stagnant. Migration is a safety valve, but there does not seem to be a strategy to create meaningful jobs at home. Those who came home during the Covid-19 pandemic have <a href="https://nepalitimes.com/here-now/nepali-workers-returning-to-india">mostly gone back because of the lack of job prospects here</a>. Now, as geopolitical tensions rise, risking the very safety of Nepalis abroad, migration and the economy’s dependence on remittance will be fragile.&nbsp; Bimala Rai Poudel says the West Asia conflict is a warning bell for Nepal to rethink its over-reliance on outmigration. Ganesh Gurung agrees that <a href="https://nepalitimes.com/news/nepalis-confirmed-killed-in-hamas-attack">the Israel-Hamas war</a> should be a warning that Nepal’s remittance economy is vulnerable to geopolitics. He adds: “What Nepal has been doing so far is crisis management, what we really need to pre-crisis preparedness given the potential dangers of crises like the one in Israel we will be exposed to in the coming days.”

Remittonomics and conflict

President of the Confederation of Nepalese Industries (CNI) Rajesh Kumar Agrawal declared last week that the economy was in a deep recession. But others cite record high remittances and foreign exchange reserves to say there is no cause for alarm. &nbsp;
Whom to believe? Both sides are right. The external sector of the economy is sound, but jobs are down and so is domestic demand and economic activities are. There is no domestic and foreign investment.
“Looking at our macroeconomic indicators, we most certainly aren’t heading towards a recession,” says Ishwori Prasad Bhandari of the National Statistics Office. “We are, however, experiencing a slow growth rate."
Unlike what many had predicted last year, Nepal has not gone down like Sri Lanka. Foreign reserves have climbed to $11.85 billion, enough to cover imports for more than 10 months. Nepalis sent home Rs116.2 billion in just the last month, a record and 26% up from the same month in 2022. And that is just through official channels.&nbsp;
After nearly 34 months, the current account deficit is on firmer ground. And the Asian Development Bank this week projected that the economic growth rate this year will bounce back to 4.3% from 1.9% % last year.
Read also: <a href="https://nepalitimes.com/news/state-of-the-state">State of the state</a>, Kunda Dixit
The inflation rate also dropped to 7.52% in July, down from 8.26% at the same time last year mainly because of lower fuel prices and lower inflation in India.&nbsp;
There are no figures for unemployment, but since about 1 million Nepalis left for overseas jobs and work-study in 2022-23, the picture is not rosy.
On the import side, demand declined first because of the pandemic and later government-imposed ban on luxury goods. Imports three years ago were down to Rs1.54 trillion only for it to bounce back a year later by nearly 25% once the restrictions were removed.
The decline in demand can also be credited to a slowdown in construction and infrastructure projects. Much of the reconstruction after the 2015 earthquake is complete, and so is new infrastructure for new local and provincial governments. This has led to a decline in demand for cement and other building materials.
The growth rate of bank loans has shrunk to 4.6% which many saw as a reluctance of industries to invest. But higher interest rates in the past have not necessarily resulted in economic growth, production, or jobs.
Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar
Due to the rapid growth of credit, the ratio of credit to the private sector has exceeded 91% of Nepal’s GDP, which is the highest in South Asia. Some experts credit this for the natural slump.
“After seeing an increase of 26% a year, it is only natural for the loan growth rate to decline,” says former banker Parshuram Kunwar Chhetri. “Credit growth can fluctuate when the economy does, it does not always increase at the same pace.”
Loans are starting to see an increase. Last month the figure stood at Rs44.15 billion which is double the amount in the same period last year.
“The economy went into decline, but did not collapse,” concludes Chhetri. “But the Central Bank could lower interest rates, relax the limit of Rs10.2 million imposed on the stock market and increase capital expenditure to boost the morale of the private sector.”
Former Finance Secretary Rameshore Khanal argues that just because some shops have closed down it does not mean that the economy is on the verge of collapse. “A lull in market and consumption have changed leading to some businesses experiencing difficulties. But other businesses have sprung up. This is a natural trend.”&nbsp;
Read also: <a href="https://www.nepalitimes.com/news/till-debt-do-us-part">Till debt do us part</a>, Ramesh Kumar
Indeed, much business has shifted to digital platforms since the Covid pandemic. Just last month, mobile banking accounted for Rs243 billion, up from Rs73 billion two years ago.
“If it was a real recession, people would stop buying home appliances but here during the NADA auto show this year, there was a record high transaction worth Rs20 billion,” says Khanal.
So why are businesses trying to make it look like we are facing the Great Depression?
Experts say businesses are exaggerating the recession narrative to influence policy so they can get away with not paying high interest rates on loans taken earlier.&nbsp;
Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial
“This problem arose in the first place due to the flow of cheap loans,” explains Shivraj Adhikari of Tribhuvan University. “And what we have now is the business community trying to create a policy trap by demanding concessions on their unpaid loans.”
But this is not to say that all is hunky dory. Much of the remittances are spent on unproductive sectors when they should have gone into job creation, renewable businesses, and manufacturing. Nepal also needs to increase its capital expenditure.
Says Nepal Rastra Bank’s Prakash Kumar Shrestha: “There are structural problems from the past and we will need major reforms to speed up the economy. Business as usual and only relying on the real estate and stock market for growth will not be enough.”
Read also: <a href="https://nepalitimes.com/here-now/cost-of-living-in-a-big-city">Cost of living in a big city</a>, Ramesh Kumar

Business as unusual

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111120/637216bc9c7e80680e0ba9abjpeg.jpg" alt="" width="970" height="910"/>During the 2017 election, overseas workers like myself consoled ourselves that in the next one, we would be eligible to vote. After all, the Constitution guarantees us the right.Nepalis in Nepal are voting on 13 May in local polls, but once again we are not allowed to. Nor can we cast our ballots in general elections later this year. We may not be allowed to vote in the next polls in five years, either.I had recently engaged with fellow Nepalis in Qatar about what their expectations from the government back home regarding the upcoming elections were, and despite the Constitution guaranteeing the right to vote what they thought about being prevented from exercising it.The sentiment among Nepalis was broadly similar. Not being allowed to vote means we do not have a say in matters that directly impact us or our families back home.This is despite the Constitution guaranteeing us our rights and a subsequent 2018 Supreme Court order to the government to make all the necessary arrangements to ensure us our voting rights.Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-1/">Diaspora Diaries 1</a>, Nepali TimesMany countries allow absentee voting, and if our leaders had been willing, Nepal's embassies could be easily mobilised to facilitate it. But there is no interest, conversation or movement in that direction.There should at least have been discussions on the how’s and why’s, and not the present demeaning radio silence.The lack of interest shows that it is not just the practical challenges to facilitate overseas voting that the government does not want to entertain, but also the principle of allowing us to vote.At a time when frustration towards politics is at an all time high regardless of where Nepalis are based, it is a pity that those of us abroad cannot channel our frustration through the ballot box.Nomination filing is underway in Nepal, and candidates have started campaigning in an attempt to influence voters. Amidst the frenzy, despite being a significant chunk of the population, we are not in anyone’s radar.Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-2/" target="_blank" rel="noopener noreferrer">Diaspora Diaries 2</a>, Nepali Times It seems as if we overseas Nepalis do not need to be influenced — not even with empty promises — which also means the issues that concern us do not get their due attention.It is ironic how on the one hand, public discourse has been dominated by the upcoming election in which migrants are not given much consideration, while on the other hand, falling remittances sent by migrants has become an issue of grave public concern.Those in power are even calling on us to send money legally to help the country. Our notes count, but our votes don’t, as the saying goes.The sole focus on remittances without a second thought for those sending money home is tragic. If the officials back home only understood that the two cannot be separated.If they realise that remittances are indeed critical for our economy and gets nervous when there is a dip, why do they do nothing to ease the lives of the senders?Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-3/">Diaspora Diaries 3</a>, Nepali TimesInstead, we are grossly inconvenienced by a system designed to make our lives difficult even before we migrate, during our time abroad, and when we return.Worrying about falling remittances alone is not meaningful. Remittances are linked to both quality and quantity of the overseas jobs. Emphasis by the Nepal government on capturing well-paying, available jobs abroad is limited. Instead, even the lucrative jobs that could be channelled to Nepalis are lost because of our complex labour approval system.Workers, for example, cannot take on assignments if the duration of the contract is less than two years under Nepal’s labour approval system, no matter their benefits. How many jobs have we lost to other countries because our approval system is so complicated and time consuming that employers would rather look elsewhere so they can fill the vacancies on time?Has anyone compared how much more time it takes to deploy one worker from Nepal compared to other countries? These concerns are especially pronounced after the pandemic when many lost their jobs and returned, or many like me had to compromise on our salaries during the business downturn due to Covid-19.Read also: <a href="https://www.nepalitimes.com/here-now/diaspora-diaries-4/">Diaspora Diaries 4</a>, Nepali TimesThere are many restrictions and hurdles for those of us who are overseas, and who send or carry money home. Amid concerns regarding illicit transfers of money or gold smuggling, it is us migrants who get scapegoated and punished. I cannot easily bring home gold for my sister’s wedding, or an iPhone for my wife without getting severely punished.Every few months there is a new boss who introduces a new set of rules regarding what we can and cannot bring to the country, many times without any sound reason, and we get penalised accordingly. The rules change and are confusing even for me as a journalist who keeps track of all these regularly as part of my profession. How are others expected to keep up?I understand the concerns regarding illicit transfers that drive such decisions. But claiming to tackle these informal transfers by harassing migrant workers lets the real criminals off the hook. We workers get victimised even when we have nothing to do with  the smugglers, even while the problems at hand remain unaddressed.Any action taken is just for show or a bare scratch on the surface. It is as if the broader message from the government to us is that we should toil hard in the desert heat day and night, and send money home — but we cannot decide how to use it.Nepal's remittances are falling. But have the leaders and those in power ever done anything concrete to better understand why people use the informal hundi channel to send money and what steps can be taken to compete with this transfer?Read also: <a href="https://www.nepalitimes.com/here-now/the-qatar-job-mirage/">The Qatar job mirage</a>, Nepali TimesWhen both the commissions for transfer and exchange rate is better than formal rates, while being more convenient for both the sender and recipient who engage in phone transactions for home-based pick up and delivery of the amount, should we be surprised that many, especially those who earn very little and have very long working hours, should opt for this informal system of money transfer?What has been done to ensure easy digital transfers of remittances? What has been done to reduce the cost of transfer of remittances? What incentives are there for a normal worker to opt for formal transfers?It is just not about foreign employment or remittances, but issues that concern us as citizens being prevented from having a say in the elections. Even when we are disenfranchised from our voting rights, the election and state of affairs in Nepal remains an important part of our discourse and concern.One overseas Nepali shared with me that being away makes him understand the importance of having good leaders and representatives for economic growth and development, which he got to witness directly in ways that one may not have had a chance to back in Nepal.Another said that not being able to vote despite being on the voters list is a wasted opportunity to influence election outcomes and choose strong candidates. We are instead relegated to just sending remittances for our incompetent leaders to waste, they added.Read also: <a href="https://www.nepalitimes.com/banner/fate-joins-then-separates-siblings/">Fate joins, then separates, siblings</a>, Anil ShresthaWe sit here in a foreign land and helplessly watch our family members back home being repeatedly failed by our leaders. The election is also tied to our own futures back home. Many of us were compelled to migrate even for very low paying jobs with very little reward because of the government’s inability to provide jobs back home.One of my colleagues who has been in Qatar for the last 25 years has never once voted, and there is nothing he can do about it.I cannot speak for all, but for us sweating in the Gulf, our ultimate destination is always Nepal. We may stretch our employment until either our employers or our bodies allow it, but we will all come home eventually.However, the decision to return is never easy. What will we come back to, especially as returnees who could be potential entrepreneurs or jobseekers?When I talk to my colleagues here from the Philippines, it is evident how their government recognises their value, not just in words but in action.She shared how she recently cast her ballot for elections in the Philippines from Qatar. This makes me question: Would they care more about the senders and not just what is sent if we had the provision to exercise our constitutional right to vote?I am afraid we will not find the answer during this year's election cycle either.Read more:<a href="https://www.nepalitimes.com/banner/between-home-and-the-deep-blue-sea/">Between home and the deep blue sea</a>, Prakash Gurung<a href="https://www.nepalitimes.com/here-now/power-of-workers-working-together/">Power of workers working together</a>, Madhusudhan Ojha

Our notes count, but our votes don’t

Earlier this month, Nepal received Rs1.6 billion from the World Bank as part of its <a href="https://nepalitimes.com/news/will-nepal-ever-be-paid-for-saving-trees">Forest Carbon Partnership Facility (FCPF)</a>, rewarding the country for increasing its carbon sink capacity. Nepal is the first in South Asia to benefit from this facility, and it is specifically to recompense the country for increasing forest cover in 13 Tarai districts between 2018-2024. “We are also trying to get another Rs13 billion from the facility while also preparing for free market-based carbon trading in the international market,” says Nabaraj Pudasaini of the REDD (Reducing Emissions from Deforestation and Forest Degradation in Developing Countries) Implementation Centre. Big emitters of greenhouse gases are under pressure to reduce their carbon emissions, and many have signed agreements to do so by investing in decarbonisation projects in developing countries. Countries that emit more than a specified amount of carbon would be able to buy emission rights from countries that emit less. Nepal is internationally known for its community forestry program which has been largely credited for <a href="https://nepalitimes.com/banner/tree-mendous">increasing tree cover to over 45%</a> in less than three decades. But this achievement had not been adequately recognised or rewarded internationally before. Forests, especially in the tropics, absorb and store large amounts of carbon while releasing oxygen in a process known as photosynthesis. <a href="https://www.fao.org/forest-resources-assessment/en/">Preventing deforestation</a> and increasing canopy cover is considered a much more achievable goal than reducing emission in the scale necessary to limit global average temperature to 1.5°C above pre-industrial levels. COP11 in Montreal in 2005 first proposed reducing carbon emissions by improving forest quality by halting degradation. By 2015, a new mechanism of financial assistance was created to help less developed countries with sustainable management of forests <a href="https://www.un-redd.org/">(called REDD+)</a>. Under this new mechanism, countries receive aid based on their efforts to prevent forest degradation and increase carbon sink, and in 2021 the World Bank was entrusted with implementing it. Nepal’s FCPF receipt this month was calculated on the basis of 2.4 million tons of carbon stored at a rate of $5 per ton. In the second phase, Nepal will receive more than Rs4 billion within the next year for storing an additional 7 million tons of carbon. Eighty per cent of this amount obtained from carbon trading needs to be spent on local beneficiaries and indigenous communities.&nbsp; But carbon trading is not easy, Nepal needs to prove that protected forests will not be destroyed in future.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241121091132_c8a381c9a95aa86fec558951650d97bb87914741f01766982ba2b086af001f16.jpg" data-media-id="editor_4" data-image-id="20241121091132_c8a381c9a95aa86fec558951650d97bb87914741f01766982ba2b086af001f16" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="Greenbacks for greenery NT "> <figcaption>Photo: KUNDA DIXIT</figcaption> </figure>  Explains carbon trading expert Yugan Manandhar. “Forests should be handed over to the community and shown that they are managed sustainably. Proving this will be particularly challenging; forest encroachment and degradation is rife in the Tarai.” <a href="https://nepalitimes.com/multimedia/nepal-is-going-up-in-smoke">Deliberate forest fires</a> have also added to the challenge because they increase carbon emissions and reduce the sink capacity of forests. The basis for the amount that Nepal received was set five years ago by calculating the carbon reserves of forests in the 13 Tarai districts. In the meantime, sustainable forest management, tree plantation, forest destruction and erosion control were prioritised to increase carbon reserves in those forests. Nepal is signing another carbon trading agreement during the ongoing Baku climate conference. The <a href="https://www.leafcoalition.org/">Lowering Emissions by Accelerating Forest finance (LEAF Coalition) </a>proposes to sell the carbon stored in the forests of Bagmati, Gandaki and Lumbini provinces. For this, Nepal signed the letter of intent three years ago at COP26 in Glasgow. The target is to store 70 million tons of carbon in 32 million hectares of forest in the three provinces per which Nepal will receive Rs13 billion in four years at $10 per ton with provisions to increase the rate if various conditions are met. However, the agreement in itself doesn’t guarantee the amount. According to the targets set by Nepal, forest degradation should be stopped and carbon reserves increased by protecting tree cover. Preparations are also underway for clean air carbon trade because it has offset fossil fuel use by introducing 30,000 electric vehicles. Nepal has been selected for the first round to receive $40 million within one and a half years through the Clean Air System of the World Bank. Given that most of Nepal’s energy mix is from biomass, replacing them with electric stoves can significantly improve health by reducing indoor pollution as well as strengthen the country’s capacity for carbon trade. “Nepal's goal now is to sell carbon in the free market where carbon credits are bought and sold based on supply and demand in an open and transparent manner,” adds Pudasaini of the REDD Implementation Centre. “Nepal can now set its own price and bargain with interested buyer countries and organisations.” Lately, India has been discussing setting up a carbon market. Nepal has exported Rs12.72 billion worth of electricity to India so far this fiscal year, which can be traded under Nepal’s carbon market. “Carbon trading can create significant economic benefits for Nepal, which will help reinvest in development and environmental protection projects,” says Manandhar. “But we must prioritise sustainable management of forests, cutting older trees and allowing regrowth as well as promoting electric stoves and electric vehicles.”

Greenbacks for greenery

Khukri Rum is <a href="http://archive.nepalitimes.com/news.php?id=3719#.WurBk6SFPIU">one of Nepal’s most iconic brands</a>, and is now launching a new Cask Series premium product to sell in Nepal and abroad. The Cask Series Smoked Finish Khukri Rum is a limited edition with only about 7,000 bottles, most of it for export and rest to be sold to rum connoisseurs in Nepal itself. Each bottle is numbered and will mention the cask from which it is derived. “We are working on taking a classic Nepali rum to a new luxury premium brand category, the Cask Series will only be produced this year with new product ranges in future,” explains Subash Lamichhane, managing director of Nepal Distilleries that first started making Khukri rum in 1959 in Balaju and has never stopped. Fermented from molasses in Bara district in the Tarai after the annual sugarcane harvest, the rum is matured for at least eight months during distillation. The distillery bottles the classic Khukri XXX, Coronation Khukri XXX, Khukri White Rum and Khukri Spiced Rum.&nbsp; The distillery is now adding this limited edition of its ‘Cask Series’. While the original rum is stored in huge wooden vats, the rum used for this more exclusive line is in smaller casks made either from oak or sal, with charred insides to give the rum a smoky flavour. The Cask Series rum is indeed smokier than the classic, while the spiced rum tastes toasty and mostly of cardamom. The company has a tasting suite with a master blender and tasters who have to approve the palate test.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241122131124_10b8ddca93b37b0348bf964b4f09e7fac6ef4e754cca6231368850539cd558e2.jpg" data-media-id="editor_1" data-image-id="20241122131124_10b8ddca93b37b0348bf964b4f09e7fac6ef4e754cca6231368850539cd558e2" data-rendition-name="original" width="1498" height="1000" loading="lazy" alt="Khukri Rum"> </figure>  The packaging for the Cask Series is as special as the process. A sturdy patterned box that opens up to a black glass bottle with gold lettering, and an indication of which cask the rum is from. These are then shipped to premium customers around the world One of the reasons this is the more expensive premium line is because the casks are smaller than the vats and the blenders reject more than half of the rum in the casks when the aging period is complete. The trick for the blender is also to decide when to take the run out of the cask.&nbsp; Says Lamichhane: “If we have 25 casks, we expect to throw away about fifteen.”Over the decades, Nepal Distilleries have created and maintained a brand that feels quintessentially Nepali, and has served as Nepal’s ‘ambassador’ with exports to Germany, Korea, Belgium, Finland, the Czech Republic, besides the existing markets among Nepalis in the US, UK, Hong Kong and Australia. &nbsp;Its unique <a href="https://nepalitimes.com/here-now/khukri-rum-sharpens-its-act">khukri shaped bottle</a> first introduced for King Birendra’s coronation in 1975 has been a collector’s item. The bottle and rum have been a staple for Nepalis and visitors to take as gifts when they leave the country, and is used as decoration on bar tables around the world. Now, nearly 40 years later, even that bottle will soon be getting a makeover with a sharper design and sleeker handle. “Our bottle design has always been instantly recognisable, and it is,” says Lamichhane. The Himalayan restaurant at The Hague, for example, has a Khukri Coronation bottle adorning its bar (page 6-7). In Washington DC Himalayan Heritage Restaurant &amp; Bar offers ‘Nepalese Khukri Rum’ mojito in its drinks menu with fresh mint, soda water, lime juice and sugar syrup, for $12.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241122131124_b9474db3fc83c85845348dddc30c49652ee1f17229531867fa241de50849cedc.jpg" data-media-id="editor_3" data-image-id="20241122131124_b9474db3fc83c85845348dddc30c49652ee1f17229531867fa241de50849cedc" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Khukri Rum NT"> <figcaption>Christopher Armes, master blender of the Cask Series.</figcaption> </figure>  A distinct element of the award-winning <a href="https://nepalitimes.com/business/khukri-rum-gets-award">classic Khukri rum</a> is its burgundy colour from caramel sourced from cooking sugar and blended with the raw rum. The spirits are then stored in a warehouse with floor-to-ceiling vats. The vats are not just for storage, the wood in the vats imparts flavour into the rum, and removes a lot of the harshness. &nbsp; On a visit this week, the bottling room was just about to begin for the day and the production line was churning out different shapes and sizes of Khukri Rum bottles. Most of the process is automated, including screwing bottle caps, sticking labels, placing the government seal, and packaging. The only manual intervention is the quality control where bottles are held against the light to check for sediment and colour. A mural on the wall of the distillery in Balaju depicts the rum-making process. A lady slings sugarcane on her shoulder, the molasses is churned in a pot, water is channelled into the distillation process, cinnamon, cloves and cardamom are added to a container, and finally there is a bottle of the classic Khukri Rum against a Kathmandu backdrop.

Khukri goes premium with new rum

Turkish Airlines has introduced a new amenity kit collection designed in collaboration with French fashion house Lanvin for international business class passengers on flights more than five hours. It consists of five pieces designed for sustainability and elegance. Bags are reusable and will consist of Lanvin cosmetic products like hand and body lotions and lip balm. Eye masks and socks are made from recycled materials, earplugs are packaged in paper and the toothbrush is bamboo.

Turkish amenity kit

Nepal now generates a surplus of electricity and it is all from renewable hydropower. Nearly half the country is under forest cover. Despite meeting these decarbonisation goals, Nepal’s hydropower plants are threatened by increased risk due to climate impact.&nbsp; Till <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">28 September</a>, Nepal was <a href="https://nepalitimes.com/news/india-nepal-sign-power-exchange-deal">exporting just over 1,000MW</a> of electricity to power-hungry India, when flash floods and landslides unleashed by historically heavy rains damaged over 30 hydropower plants across the country, temporarily <a href="https://nepalitimes.com/news/power-to-the-people">slashing nearly half the power generation.</a> The 456MW Upper Tamakosi in Dolakha was the hardest hit and it will take six months and Rs2 billion to repair. This has significantly reduced exports as well as domestic generation. Two months later, Nepal has still not been unable to fully keep its export commitment, and is actually paying Rs100 million in fines to India. Thirty-seven existing and under construction projects under the Independent Power Producers' Association Nepal (IPPAN) suffered Rs2.5 billion in damage. One of them is the 22MW Bagmati project in Makwanpur which was almost completely buried in flood debris. Even before <a href="https://nepalitimes.com/news/60-dead-64-missing-in-nepal-floods">record-breaking rain in September</a>, 15 other hydropower projects had been damaged by floods. Last year, floods caused by heavy localised rain damaged 28 hydropower plants. World governments met in Baku for COP29 to discuss the Loss &amp; Damage Fund and the Adaptation Fund, but for countries like Nepal the commas and brackets are meaningless until they are turned into $ and €. And likelihood of adequate compensation for climate-related damage is a long way off, if ever. Nepal’s national strategy is to use its vast hydropower resource as clean energy to spur economic growth, job creation, and boost export revenue. But the plants are located in narrow Himalayan valleys prone to landslides and floods even at the best of times. Now, those <a href="https://nepalitimes.com/opinion/comment/changing-climate-for-investment-in-nepal">risks have been heightened by weather extremes</a> due to climate breakdown. At present, Nepal generates over 3,300MW of clean hydropower, and the target is to reach 12,700MW in the next five years. Projects equivalent to 6,000MW are under construction or ready to start. The Ministry of Energy, Water Resources and Irrigation has an Energy Development Roadmap and Action Plan with the target of producing 28,500MW by 2035 by when more than half of it will be exported.&nbsp; “The climate crisis will further change the rainfall patterns making hydropower generation a big question mark in the future,” Manjeet Dhakal in Baku, who is also the Nepali adviser to the LDC Chair at the United Nations Framework Convention on Climate Change (UNFCCC). “We are building hydropower projects on rivers without evaluating risk. This whole process needs to be reviewed and reconsidered.” The report of the National Adaptation Plan published by the Ministry of Forest and Environment last year mentions that hydropower production, transmission and distribution will be at risk from flash floods, debris flows, glacial lake outbursts and rising temperatures.&nbsp; This risk is not confined to Nepal. Average global temperatures have increased by 1.3°C compared to the pre-industrial era. Worse, the Himalayan mountains are warming faster than the global average by 0.7°C because of elevation-dependent warming. A study conducted by our own Department of Hydrology and Meteorology in 2017 showed that the average temperature in Nepal has increased in the last four decades. Scientists say this is leading to extreme weather unleashing floods and landslides on slopes already destabilized by seismicity.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241124071128_d22901a360e8958f606d80ffa21defba05a671f65afec65539dc21a6885d8345.jpg" data-media-id="editor_5" data-image-id="20241124071128_d22901a360e8958f606d80ffa21defba05a671f65afec65539dc21a6885d8345" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Right climate for Nepal’s energy transition NT"> <figcaption>BIBLICAL RAIN: Photo taken during catastrophic rain on 27-28 September at the Upper Tamakosi project site that destroyed the control room, killing four staff and burying the sedimentation tanks. Photo: RSS</figcaption> </figure>  Increased atmospheric temperatures has made the monsoon rains more erratic. It does not rain when it is supposed to, and it comes down in torrents when it is not supposed to. The September floods happened two weeks after the monsoon was supposed to retreat from central Nepal. Kathmandu Valley received half its annual precipitation in just over a day. &nbsp; Winter precipitation has also failed, especially in the high mountains and trans-Himalayan valleys. Thirteen of the past 19 years experienced winter drought. This impacts on dry season flows of the rivers, reducing hydropower generation. Nepal’s power capacity normally goes down by one-fourth during winter, but the gap is widening. The Kabeli corridor could only generate 20MW November-March even though plants there have an installed capacity of 200MW. Similarly, Upper Tamakosi only produced 65MW at most against its 456MW capacity last winter. The Nepal Electricity Authority (NEA) pays producers double the price for winter electricity, Rs8.40 per unit. Even though winter operation is highly profitable the rivers run low and NEA has to import from India to meet the winter demand. “This is not just a weather problem but a serious challenge also for the country's energy future, good climate-friendly design should be combined with policy and effective implementation,” says Subarna Das Shrestha, a hydropower investor and CEO of Sanima Mai Hydropower. “Insurance premiums have gone up as well, and settlement for damage is not timely.” <a href="https://nepalitimes.com/opinion/climate-risk-to-hydropower-investment">Hydropower investment</a> at one time was regarded as having a high rate of return. Now, some investors have become <a href="https://nepalitimes.com/banner/climate-smarter-himalayan-infrastructure">wary of the risks involved</a>. Says IPPAN’s Uttam Blon Lama: “Hydropower projects expected to give stable returns are now looking risky. Not only is climate adaptation design and planning expensive, but future repair and maintenance costs will also skyrocket.” Nepal has only one storage type dam <a href="https://nepalitimes.com/multimedia/rivers-be-dammed">in Kulekhani</a> and another one is being built in <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">Tanahu</a>, but they are also at risk. In September, the sluice gates of Kulekhani Dam had to be opened causing loss of life and destruction downstream. Nepal has to learn lessons from the deadly collapse of the $1 billion <a href="https://nepalitimes.com/news/sikkim-flood-is-warning-to-nepal">Chungthang Dam in Sikkim</a> in October 2023 cause by a glacial lake burst. Glacial Lake Outburst Floods (GLOFs) in Nepal pose potentially catastrophic risk to infrastructure. The <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">Thame flood in August</a> was a relatively minor debris flow that damaged half of this village in the Everest region when <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">two glacial lakes at 4,760m burst</a>. Luckily there was no loss of life. Of the <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">47 high-risk glacial lakes</a> in the eastern Nepal Himalaya, 21 are in Nepal and the rest are in rivers in China that are tributaries of the Arun and Bhote Kosi where Nepal has major hydropower plants under construction, or planned.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241123021128_b596cd8520c57a6c5476031e7a3ea6510f26b464c4d5351d2bc10f6f7d6b70d8.jpg" data-media-id="editor_14" data-image-id="20241123021128_b596cd8520c57a6c5476031e7a3ea6510f26b464c4d5351d2bc10f6f7d6b70d8" data-rendition-name="original" width="871" height="648" loading="lazy" alt="Page 10-11 map #1236 NT"> </figure>  Global temperature rise is accelerating the melting of Himalayan snow and ice, increasing the <a href="https://nepalitimes.com/here-now/living-below-nepal-s-melting-mountains">number and size of glacial lakes</a> so that we do not even have names for them. Imja Tso did not even exist in the old trekking maps until 25 years ago, but is now a 2km long lake. “Natural moraine dams in the mountains are weak, and the projects downstream can face major destruction if they burst, and the risk will only increase in future,” warns climatologist Arun Bhakta Shrestha at the <a href="https://www.icimod.org/">International Centre for Integrated Mountain Development (ICIMOD)</a>. <a href="https://nepalitimes.com/here-now/terrifying-assessment-of-a-himalayan-melting">An ICIMOD assessment in 2019</a> projected that if present heating trends continue, as they probably will, the Himalaya will lose two-thirds of our glaciers by the end of this century. “Generally speaking, hydropower developers hand over the project to the government after 30 years but by that time given the climate risks, they may not be an asset anymore,” says Manjeet Dhakal. Indeed, the cascade of expensive projects India is building on the Arun River are supposed to be handed back to Nepal in 25 years, but there is a big ‘if’ about whether they will survive that long. &nbsp;&nbsp; Planning of hydropower projects is still based on historical hydrological data, and does not take into account future temperature rise and its consequences. Investors, on the other hand, say that planning hydropower projects with climate components would make them even more expensive.&nbsp; “It’s not that we aren’t preparing for climate risk, we design keeping in mind the once-in-100-year flood,” says Blon of IPPAN. “But if we start designing based on once in 1,000 years flood, the cost would be so high that we won’t be able to build them at all.” Nonetheless, Subarna Das Shrestha of Sanima Mai Hydropower says that there is no option but to go for climate smart infrastructure despite the higher cost. Sanima Mai's powerhouse, for example, is completely underground. The strategy could also be to spread the risk by building less expensive plants located on rivers all over the country. Nepal is also diversifying away from its sole reliance on hydroelectricity, which at present supplies 92% of the power in the grid. Most of the rest comes from solar plants, where the total potential has not even been scratched. &nbsp; This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_21" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>  &nbsp;