After 11 years of pedalling his rickshaw through the narrow alleyways of old Kathmandu, Potey Tamang’s legs had to get used to being still. For close to a year now, his rickshaw business is down and out due to <a href="https://www.nepalitimes.com/here-now/nepals-economy-already-weak-takes-direct-hit/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-economy-already-weak-takes-direct-hit/&amp;source=gmail&amp;ust=1609921636622000&amp;usg=AFQjCNGrlHbVUcaNFpPQtXgOsaCAEUg6yw">the coronavirus pandemic</a>.These days, the 48-year-old spends most days waiting in front of the Gaddi Baithak hoping for a fare. Just to kill the time, he dusts the ornate painting on the sides of his rickshaw, wipes the plastic flower bouquet on the handlebar, and checks the pedals and chain. All must be in order, just in case someone wants a ride.Tamang’s day begins in his rented room in Dhalko at 5AM. For months now, most days go by without a single passenger, while he sits under the Kathmandu sun in the company of fellow rickshaw drivers.Before the Covid-19 induced <a href="https://www.nepalitimes.com/banner/kathmandu-under-semi-lockdown/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/kathmandu-under-semi-lockdown/&amp;source=gmail&amp;ust=1609921636622000&amp;usg=AFQjCNFBHdNpm3Nhu0O0hyIj8WC_h03hkQ">lockdown</a>, Tamang and his colleagues used to get plenty of hires, delivering goods or passengers through the gullies of inner Kathmandu. Tourist passengers were much sought after because they paid more, but there have been no foreigners now for nearly a year. Even with the end of the lockdown, passengers are hard to come by.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd14e9c7e80680e08f8a7jpeg.jpg" alt="" width="1920" height="1080"/><figcaption>Potey Tamang, 48, taking out his rickshaw from a garage. All photos: DRISHNA STHAPIT</figcaption></figure>“If I get lucky with a ride or two in a day, I have money to pay for food. Otherwise, I wait here all day,” says Tamang.Kathmandu’s rickshaws used to be the vehicle of choice for people commuting short distances through the narrow, crowded alleys of the old city. While there are some locals who still use the three-wheelers to move goods or quickly get to another nearby location, the business has always depended heavily on tourism. With the <a href="https://www.nepalitimes.com/latest/domestic-flight-resumption-put-off/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/domestic-flight-resumption-put-off/&amp;source=gmail&amp;ust=1609921636622000&amp;usg=AFQjCNEKn1MFJTnK-d2ZauebzuqRhCE3_Q">cancellation of international flights</a>, like all <a href="https://www.nepalitimes.com/banner/nepal-has-decided-to-live-with-covid-19/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/nepal-has-decided-to-live-with-covid-19/&amp;source=gmail&amp;ust=1609921636622000&amp;usg=AFQjCNGLXGS6D17NLvzWufIWDCQGjsPklw">businesses</a> catering to tourists, rickshaws have also hit a low.Tamang is from Kavre, and used to earn up to Rs2,000 on his best days. He and his colleagues now struggle to take care of their families.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd1519c7e80680e08f8a8jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>Another driver, Sonam, says he has not had a single passenger for three days, and is struggling to pay his rent and feed his family. The situation was not so bad before the lockdown, as Basantapur still received tourists at the start of the year and some tourists were generous enough to part with a huge tip.“Most of our customers used to be tourists, that is why we are having a hard time. If there were even a few local passengers at times like this, it would have been a little easier for us,” says Maila Lama, 58, who has been driving rickshaws for the past 25 years.According to Lama, use of rickshaws by locals has gone down because more and more people in Kathmandu now own two-wheelers. Both Lama and Tamang concur that the popularity of ride-sharing apps like Tootle and Pathao has also affected their business.“We don’t get as many local passengers like we used to because of Pathao. We normally charge around Rs100 for a ride from Durbar Square to Thamel. Pathao charges only Rs70,” says Tamang. “While their service is cheaper, we charge more because we have to put in physical effort.”The sight of the brightly coloured three-wheelers staggering along Kathmandu’s bumpy roads started to become rare as the business took a back seat in recent years. Many rickshaw operators moved on to other businesses that promised better return for their labour.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd1559c7e80680e08f8a9jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>“Some of my friends are working as tempo drivers, some drive taxis, while some are working as labourers,” says Lama. “Sometimes I also feel like quitting this job and starting something else. But everything requires money and I don’t have it.”The bright paint and colourful frills decorating the rickshaws are starting to pale out, as the tourist eye-candy of the past has been relegated to the parking stands. Tamang says he worries about the future of the business. He says if people stop using rickshaws, the mode of transportation will die out and people like him will have to find alternative ways to make a living.“I am getting old and I don’t have any other skill. If the situation does not improve in a few months, I’ll have no other option but to go back to my village,” he says.While Tamang is already considering an alternative, Lama and Sonam are still pinning their hopes on the resurgence of tourism in Nepal. “I am hopeful that our business will improve in 2021. Once the tourists start coming to Kathmandu, we will be able to earn again,” says 37-year-old Sonam.For now, their eyes search passersby, pinning on to hope that the convenience of a quick ride will bring them a passenger or two.

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Pandemic puts brake on Kathmandu's rickshaws

https://www.youtube.com/watch?v=quNIH9UyXBI&amp;feature=youtu.beKathmandu’s overcrowded public buses are a daily challenge for commuters, but they are virtually impossible for the <a href="https://www.nepalitimes.com/here-now/the-right-of-passage/" target="_blank" rel="noopener">visually impaired</a> and people with disabilities. Fortunately there is now <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/outdated-laws-limited-ecommerce-hold-back-tech-industry%20,3547" target="_blank" rel="noopener">Tootle</a>, the motorcycle ride-sharing app, for people like massage therapist Junu Shrestha, 31, who likes the door-to-door service.“I am a female and a blind one at that. Micros are unsafe, taxis are expensive, but Tootle is affordable and convenient,” says Shrestha (pictured below) who commutes every day to work at a Boudha branch of <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/touching-and-feeling-seeing-hands,4105" target="_blank" rel="noopener">Seeing Hands</a>, the blind massage therapy centres in Kathmandu.Chiran Paudel, 35, is fed up with extortion from taxi drivers taking advantage of his inability to see. Paudel tells his female colleagues to avoid micros and taxis, and call Tootle or the other ride-sharing app, <a href="https://play.google.com/store/apps/details?id=com.pathao.user&amp;hl=en" target="_blank" rel="noopener">Pathao</a>, instead.“I can’t count the number of times I’ve been cheated by taxi drivers,” says Paudel, who also works for Seeing Hands.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41919c7e80680e04a681jpeg.jpg" alt="" width="640" height="359"/><figcaption>All photos: MONIKA DEUPALA</figcaption></figure>Kushal Pandey, 26, is partially blind, and says it is nearly impossible to get on crowded buses. “As soon as conductors see our walking stick or someone on a wheelchair they speed off, and if the driver does stop it is impossible to get the seat for the disabled.”It is no coincidence that <a href="https://tootle.today/" target="_blank" rel="noopener">Tootle</a>, which has been facing hurdles over taxation, has taken off among female commuters and people living with disabilities, who find public transport difficult and dangerous. Women make up half of Tootle’s users — and roughly 10% of the service's drivers — and there are more than 150 visually impaired riders a day.“The Tootle app was developed to give everyone the freedom of movement, especially those living with disabilities, women who face <a href="https://archive.nepalitimes.com/article/nation/going-under-cover-bus-sting-operation%20,3889" target="_blank" rel="noopener">harassment in crowded public transport</a> and those without personal vehicles,” says CEO Sixit Bhatta, who adds that the firm’s software engineers have worked with the visually impaired and those with disabilities to make the app more user friendly.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41949c7e80680e04a682jpeg.jpg" alt="" width="640" height="427">Roma Neupane lost her left leg in an accident when she was eight. She is now a famous <a href="http://archive.nepalitimes.com/news.php?id=14509#.XOaYW1IzaUk" target="_blank" rel="noopener">one-legged dancer</a> and actress in Nepali movies. But despite her popularity, she hasn’t been able to travel easily to shoots around Kathmandu.“I have to perform all over the city and often times the shoot goes late into night; I now manage it all with Tootle,” says Neupane, who calls for rides up to four times a day and to get home at night. “The drivers now know me and treat me like their sister.”In the two years since its launch, the ride-sharing startup has also amassed support among the general public, created 10,000 jobs, and now serves thousands of passengers a day. Much more challenging has been navigating Nepal’s byzantine tax laws and the <a href="https://www.nepalitimes.com/banner/nepals-budding-e-commerce-ecosystem/" target="_blank" rel="noopener">lack of electronic micropayments</a>.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121144/636a41979c7e80680e04a683jpeg.jpg" alt="" width="640" height="427">Bhimmaya Sunuwar (pictured driving the motorcycle above) a mother of two from Dharan, works as a Tootle driver from 9AM-3PM, when she is free from her duties as a mother and homemaker. She makes Rs30,000 a month, and Tootle does not take any fee from women drivers like her.Says the 37-year-old: “The best thing is that the working hours are flexible and I can choose to ride when I want to. And the money is handy.”

Sonia Awale

Three toots for Tootle

It is only April, and Himalayan expeditions are already making rotations to acclimatise on Annapurna and Dhaulagiri, and will soon be making summit pushes.&nbsp; On Mt Everest, Icefall Doctors are fixing ropes and ladders into the Western Cwm as international climbers arrive at Base Camp. Spring 2026 is going to be the busiest and most crowded so far in the Nepal Himalaya. The main reason is that China has closed expeditions from the north side for eight-thousanders Everest and Cho Oyu, and also Xixapangma.&nbsp; The closure is informal, from what one can make out. The Chinese have not put out any official statement, but there are no permits either. The reason seemingly was the ‘Rising Dragon’ firework display last September by pyrotechnic artist Cai Guo-Qiang near Xigatse.&nbsp; Working with outdoor wear company Arc’teryx, Guo-Qiang set off an impressive sequence of orange and white fireworks that wound up a mountain. The spectacular display was criticised for damaging the fragile ecology of the Tibetan Plateau. But this cannot be the only reason the north side is closed. Experienced Everest blogger Alan Arnette anticipates that about 125 climbers will shift to the Nepal side of the mountains, and expects there to be up to 900 summits this spring — up from the highest spring number so far of 876 climbers on top in 2019.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082.jpg" data-media-id="editor_0" data-image-id="20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="mountaineering"> <figcaption>Photo: KARMA TENZING</figcaption> </figure>  The early Base Camp arrivals are having problems with their first rotations because of heavy snow this season. Unlike previous springs, this year has seen back-to-back blizzards at high altitudes since February. The increased snow load on the slopes have increased avalanche danger right across the mountains.&nbsp; There has been an increase in numbers on Everest despite the West Asia war, flight disruptions, LPG shortage and new regulations. The permit fee has gone up for the first time since 2015 from $11,000 to $15,000 this year.&nbsp; The Tourism Bill passed by Nepal’s Upper House last year would have required climbers to have first summitted a 7,000m peak in Nepal before attempting Everest. However, the Department of Tourism has confirmed that there are no new experience requirements this season. Some want this rule changed to include 7,000m peaks anywhere in the world. That could be one reason people are rushing to climb Everest before the Nepal government changes its mind and enforces the new regulations on prior experience on Everest. “It’s probably going to encourage a lot of people that simply are not ready to go,” reckons Alan Arnette. “Once again, we may see a lot of inexperienced people on the mountain trying to get in before the rule comes into place, if it does.”&nbsp; Arnette has always been sceptical of Everest regulations, and points out many instances where rules have been announced but not implemented over the ten years that he has been tracking them. For example, a helicopter ban to Everest Base Camp was announced last year, but rescinded. A rule requiring climbers to bring down waste was never seriously enforced. Since there is so much money involved for the government and for the operators, any any rule that would reduce revenue is never fully implemented. This year there is another ‘High-Altitude Trash Quota’ rule requiring climbers and guides operating above Camp 2 to collect and bring down at least 2kg of waste from the higher camps.&nbsp; The Nepal government has tried to diversify peaks on offer by reducing the royalty on climbs, but the draw of Everest, Annapurna and other eight-thousanders seems to be too great. Even when the permit fees for some remote peaks like Kangri Shar, Himlung and Api, were reduced to $400, there are few takers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d.jpg" data-media-id="editor_1" data-image-id="20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Photo Damien Francois"> <figcaption>Photo: DAMIEN FRANCOIS</figcaption> </figure>  TIME LAPSE Clients and expedition operators have been trying to shorten the time needed to complete an Everest expedition from the city of origin to the top and back. Since Nepal has no rules about spending a certain number of days in acclimatisation, this has allowed some expedition organisers to use new technology.&nbsp; Austrian operator Lukas Furtenbach last May led a group of four British ex-military clients to the summit within a week of leaving London. This climb was scrutinised because the group had practiced breathing xenon gas, a substance that increases the count of red blood cells and is banned in competitive sports. The climbers had also trained for months at home in hypoxic tents, and used supplemental oxygen during the actual climb.&nbsp; The success of that expedition prompted an investigation by Nepal’s Ministry of Culture, Tourism, and Civil Aviation, but there was nothing it could do because the team had taken the xenon in Germany two weeks before their trip. But even if they had administered the gas in Nepal, it would technically not be illegal. Furtenbach is firmly in favour of speed, and of using the gas. “The only reason why we are working with xenon is to make climbing safer, to protect climbers from high altitude sickness,” he says, arguing that the less time climbers spend on the mountains, the less their exposure is to disasters, sickness, and they also generate less trash.&nbsp; His firm, Furtenbach Adventure, offers a three-week Everest South Flash expedition, at a cost of €100,000, using custom oxygen systems. Other expeditions take up to two months.&nbsp; A young American duo of Ryan Mitchell and Justin Sockett got to Everest Base Camp five days ago. They are preparing for an oxygen-free summit attempt.&nbsp; ‘ Being around these mountains for one day has already brought me so much joy. Every time I come back to the Khumbu I feel more familiar and connected,’ posted Mitchell. He and Sockett have since summitted Lobuche East (6,119m) as they continue to acclimatise and wait for the Khumbu Icefall route to be fixed.&nbsp; There are other sans-O2 trips planned this climbing season in Nepal. Norwegian Kristin Harila, the fastest in the world to climb all 14 8,000ers (in 92 days), is attempting the Nuptse, Lhotse, and Everest three-peak climb without supplemental oxygen. American Tyler Andrews and Ecuadorian Karl Egloff are continuing their race to break records in Everest. While Andrews is attempting the Fastest Known Time from Base Camp to the top without oxygen, Egloff is taking it a step further and going for a round trip: from Base Camp to the summit and back in record time.&nbsp; Both Egloff and Andrews had attempted these climbs in 2025 spring, but abandoned around 7,000m due to bad weather.&nbsp; Kami Rita Sherpa wants to extend his all-time record of total Everest summits to 32, while Kenton Cool from England is chasing 20, a non-Nepali record.&nbsp; The first summits of the season will be in late April, or early May depending on weather. Besides Everest, there are a lot of interesting climbs on lesser known peaks.&nbsp; The Japanese trio of Masayuki Takenaka, Tatsuro Sugimoto, and Ryota Nomura, for example, are attempting the unclimbed Jarkya Himal (6,473m) near Manaslu. &nbsp;&nbsp; <h2>Fake rescues</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6.jpg" data-media-id="editor_2" data-image-id="20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6" data-rendition-name="original" width="800" height="519" loading="lazy" alt="Fake rescues"> </figure>  This year’s spring climbing season has coincided with Nepal’s new government taking action against alleged perpetrators in fake rescues and insurance fraud. The Central Investigation Bureau (CIB) has already arrested more than a dozen trekking agency executives, hospital managers and helicopter company executives for medevac insurance fraud. Climbers are known to fabricate medical emergencies, get flown down from as high as Camp II on Everest, and then submit false insurance claims.&nbsp; Sometimes one flight is made to look like many using fake invoices. Trekking companies are also involved in fake rescues of hikers who just get tired of walking.&nbsp; Too many fake claims could lead to insurer’s losing confidence in the industry, and increased premiums, leading to delayed responses in real accidents.&nbsp; As a result of the scandal, there is now more scrutiny from the government about rescues. Already, helicopter operators have to wait for permission before carrying out rescues while their application is vetted.&nbsp; The worry is that this could cause unnecessary delays when time is of the essence in mountain rescue. Already, medevacs are delayed because of the bureaucracy needing permits to fly to sensitive regions bordering China. Last year, a climber died on Himlung because helicopter rescue took too long while operators ran from door to door in Kathmandu to obtain necessary permits. <h2>Mingma David Sherpa, MP</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25.jpg" data-media-id="editor_3" data-image-id="20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25" data-rendition-name="original" width="960" height="958" loading="lazy" alt="Mingma David Sherpa"> </figure>  Meet Mingma David Sherpa, Nepal’s first mountaineer to be nominated to Parliament. Sherpa is a self-made professional climber from Rolwaling, who rose up from an expedition porter to a record-breaking mountaineer and expedition organiser. As an insider, he is now in a position to streamline laws related to Nepal’s trekking and mountaineering sector. He is co-owner of EliteExped with Nims Purja, and in 2021 the two were part of a team of Nepali climbers to be the first to make it to the top of K2 in winter, the second highest mountain in the world in Pakistan.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54.png" data-media-id="editor_4" data-image-id="20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54" data-rendition-name="original" width="2082" height="1396" loading="lazy" alt="Mingama David Sherpa"> </figure>  Mingma David was also on Purja’s Project Possible to climb all the 14 eight-thousanders in six months, shattering the previous record of seven years. He was featured in Purja’s documentary 14 Peaks: Nothing is Impossible.&nbsp; At age 30 he became the youngest climber to reach the top of all 14 eight-thousanders for which he was awarded the Piolet d’Or. Mingma David has taken part in dozens of successful rescues of fellow climber, including the highest ever long-line rescue on Dhaulagiri and saving the life of fellow-climber from 8,600m on Everest. <h2>April Fool</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4.jpg" data-media-id="editor_5" data-image-id="20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4" data-rendition-name="original" width="1365" height="1820" loading="lazy" alt="Furtenback Adventures"> </figure>  The Austrian expedition outfitting company Furtenbach Adventures spoofed the anticipated crowds on an April First post on social media this week, showing ‘a fully galvanized, weather-resistant steel staircase, complete with a sturdy handrail’ to make the Hillary Step bottleneck on Mt Everest less dangerous.

Nepal Himalaya Spring 2026

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Creating a firm future for Nepal

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Creating a firm future for Nepal

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