An estimated 1.8 million people were expected to leave Kathmandu Valley for their home districts for the Dasain festival this year. But that estimate was made before the <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">devastating floods last week</a> that killed at least 244 people and knocked out roads effectively marooning Kathmandu.
There are still 15 roads and major sections of highways that are blocked, while the Department of Roads and local governments are trying to build temporary roads to bypass the destroyed sections.
Read also: <a href="https://nepalitimes.com/opinion/flood-of-despair">The flood of despair</a>, Rastraraj Bhandari
Because of this, only 800,000 people had left Kathmandu Valley till Wednesday, the last day before the Dasain holidays. Domestic airlines are doing brisk business and have added flights to ferry passengers, and Nepal Airlines and Himalaya Airlines are planning to use their Airbus 320 jets to fly to Bhairawa and Pokhara from Kathmandu.
The worst damage is on the B P Highway, a major artery connecting Kathmandu to Eastern Nepal, where at least seven sections have been completely swept away by the flooded Sun Kosi and <a href="https://nepalitimes.com/multimedia/a-flood-of-tears-on-the-rosi">Rosi Khola</a>. The roads to Bhyakure Khola, Mamti Khola, Kaldhunga, Boksi Kuna, Narke Bridge, Pinthali Besi, and Dalabesi in Kavre are all blocked.
The damage to the Japanese-built BP Highway at various points along the 7km stretch from Chaukidanda in Namo Buddha to Narke in Rosi Municipality is so severe that it may take months for it to be completely repaired.
Many are not waiting for the temporary detour roads to be built and taking a roundabout route via Charikot and the Midhill Highway to head east from Kathmandu. But road conditions even there are bad with <a href="https://nepalitimes.com/multimedia/the-mountain-fell-on-top-of-us">numerous landslides</a>.&nbsp;
On Tuesday, Home Minister Ramesh Lekhak visited Sindhuli and said that the BP Highway should be operational within a week with Nepali Army working on the repairs. However, Keshav Sharma, secretary at the Ministry of Physical Infrastructure, contradicted Lekhak saying it would be difficult to reopen the BP Highway before Dasain.
The Arniko Highway connecting Kathmandu to the Chinese border at Kodari is also completely blocked at Panchkhal in Kavre and the Liping Bridge in Sindhupalchok. A span of the Sunkosi Bridge connecting the BP Highway to Ramechhap was swept away, and the Nepal Army has built a temporary ramp by filling in a part of the river.
Read also: <a href="https://nepalitimes.com/news/the-revenge-of-the-rivers">The revenge of the rivers</a>, Shamshad Ahmad
The road is also blocked at Lubhu Khola in Ramechhap and Phoksintar in Udayapur along the Pushpalal Highway. Some damaged roads are now open for one way traffic and many vehicles are stuck in the mud.
For instance, only one-way traffic is allowed in Lele on the Tika Bhairav road joining southern Lalitpur to the plains. The Midhill Highway is also blocked at Tinghare in Tehrathum, Phidim-2 on the Mechi Highway and Krishnabhir in Dhading on the Prithvi Highway to Pokhara.

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Long way home this Dasain

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20230208140216/63e3a1109c7e80680e0d7066jpeg.jpg" alt="" width="960" height="712"/>Piecemeal and whimsical decisions by governments about Nepal’s transport infrastructure have not only drained scarce resources, but also created long-term economic inefficiencies.The Transport Policy of 2001 is obsolete, and over-run by vote bank politics. Two parallel East-West Highways and one railway along the entire length of the 20km wide Tarai is a triplication, and sure to yield negative economic returns.The railway’s bisection will inhibit natural trickle-down development affect and further settlement expansion southwards. Water impounding is another challenge, and Nepal is already suffering from drainage obstructions by embankments on the Indian side.Then there is the Madan Bhandari Highway along the Chure Range just 20km north of the East-West Mahendra Highway. It has disturbed the ecologically fragile region, intensified deforestation which in turn has unleashed sedimentation and floods.The ongoing widening of the Kathmandu-Pokhara Prithivi Highway to 4 lanes, parallel to the 2-lane Pushpalal Mid Hill Highway is not justifiable, either. North-South links for India-Nepal-China tripartite trade do not make sense if Korala on the China border is linked to Gaidakot, which is an Inner Tarai city with no border checkpoint.A road connection to Sunauli on the Indian border is a better option. But the alignment of the Kali Gandaki Corridor in Gulmi and Baglung have been politically determined, jeopardising the much more convenient route via Syangja and Parbat which would have saved time and cost.Out in the east, the roadhead connecting Khandbari to hydropower projects along the Arun Valley was built in the wrong direction towards Basantapur from Hile, instead of Leguwaghat involving a detour of 40km.The previous government set aside budget for the Chandragiri–Chitlang–Palung– Chitwan Expressway with a design speed of more than 100km/h to be implemented by the private sector. This pie-in-the-sky expressway is doomed because the Kathmandu-Tarai Fast Track, is already under construction by the Nepal Army.This kind of haphazard, ad hoc planning is not just happening at the federal level. Provincial and local governments are also on a full-scale road building spree, often duplicating each other’s plans and wasting money.Nepal’s Strategic Highways are supposed to harness the development potentials of adjoining regions to complement agricultural and manufacturing, spur education and tourism. Such highway arteries are also essential because of national defense and security considerations.Strategic Highways have to be fully backed by a national political consensus, and strictly adhered to. The 2001 Transport Policy has to be redrafted to reflect Nepal’s new federal structure, changing demographics and economy.The 2021 census revealed that although the Tarai makes up 23% of Nepal’s area, 54% of the country’s 30 million people live there. On the other hand, only 6% of the population lives in the high mountains and trans-Himalaya, which make up 35% of the country’s area. The mid-mountains have 40% of the population and 42% of the area.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20230208140216/63e3a1139c7e80680e0d7067jpeg.jpg" alt="" width="850" height="501">Nepal’s population is on the move and this has created new urban hubs in the Tarai: the eastern conurbation based in Itahari, the Madhes centre in Janakpur, the Inner Tarai conurbation in Chitwan, the Butwal and Lumbini hubs, and Nepalganj and Dhangadi conurbations in the far west.Surkhet, Pokhara and Kathmandu are the mid-mountain population centres, and interconnectedness among these nine focal points should be the first principle for transport network planning.The 24 custom checkpoints with India, prominently Kakadbhitta, Jogbani, Birganj (Raxual), Bhairawa (Sunauli), Nepalganj, Dhangadi (Gauriphanta) and Gaddachauki (Banbasa) need to have roadheads aligned with Indian railway terminals, and treated as obligatory points for Nepal’s domestic transport network.To the north, there are only five main trading points based on topography and connectivity: Yari, Nheghung, Rasuwagadi, Tatopani and Kimathanka which are conveniently located along rivers that start in Tibet and cut through the Himalaya.In addition to the interconnecting all these points, high-speed connectivity will be required to accelerate growth and exploit locational advantages for which the shortest alignments are necessary. This means Nepal has to move towards expressways.The Mahendra Highway and the Nijgad–Kathmandu fast-track will be the arteries of Nepal’s transport network, but the development quadrilateral of Kathmandu–Pokhara–Lumbini– Nijgad–Kathmandu needs to also be factored.Raxual–Rasuwaghadi is a low hanging fruit among the North South corridors as the Raxual to Kathmandu section is under construction and the Kathmandu–Rasuwagadi segment is a relatively short 100km, albeit technologically demanding. The ongoing plans to construct three other North–South roads: Biratnagar–Kimathanka, Bhairawa–Korala and Nepalganj–Hilsa require realignment in a number of sections, and the design standards have to be improved if a trilateral agreement between India, Nepal and China can be concluded.Expressways must have design speeds of 100–110 km/h with hard shoulders. They need CCTVs, numbered junctions, regulated entries and exits, at least two lanes each direction with median strip and restricted grade crossings. Slow vehicles are prohibited.This means that in mountainous contours, a number of considerable stretches may require viaducts or tunnels to also reduce environmental impact. Passages for wild animal crossings are mandatory. The critical issue here will be financing.International creditors like the World Bank and the Asian Development Bank (ADB) are engaged in upgrading the Mahendra Highway. But their design standards will have to be revisited. The private sector could be urged to build the Pokhara-Kathmandu, Pokhara-Butwal and Kathmandu Rasuwagadi expressways under at Build Operate Transfer scheme.Expressway concessionaires and other investors should also be encouraged to invest in tourism and other industries. Planning industrial corridors along expressways and setting up required infrastructure will be the backbone of Nepal’s future prosperity.Chandra B Shrestha is former member of the National Reconstruction Authority (NRA).

On the fast lane to expressways

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

Barely a month after the March election, newly elected lawmakers convened for the first session of Parliament on Thursday (picured above).
But the RSP had already hit the ground running in its first week in office. Prime Minister Balendra Shah and his trusted Home Minister Sudan Gurung conducted a slew of high profile arrests. &nbsp;
The former prime minister, home minister and Kathmandu CDO, among others, were detained in connection with the 8 September massacre outside Parliament.&nbsp;
The Cabinet unveiled its 100-point roadmap outlining sweeping institutional, economic and social reforms to ensure better service delivery, and setting deadlines for itself for the first 100 days in office.&nbsp;
Key priorities include strengthening digital governance, removing redundancy across the civil service, investigating assets of high-ranking political and government figures, depoliticising the bureaucracy and universities, as well as broader legal and constitutional reforms.
“The move to hold former leaders accountable sends a powerful signal that impunity is no longer politically untouchable,” says Pukar Malla of Governance Lab at Daayitwa Abhiyan. “On the reform agenda, the direction is right but the timeline is too compressed, 100 days is not enough to transform the system. It is only enough to establish the discipline of transformation.”
The RSP’s decisions have mostly been greeted with enthusiasm by the electorate which gave the party an almost two-thirds majority in Parliament. Nepalis are for the first time in decades genuinely hopeful about the country’s leadership.
“The enthusiasm is real because the pain is real. &nbsp;But people are not just asking for symptoms to be treated. They want the patterns underneath the symptoms to change,” says Malla. "That is where the leadership journey becomes much harder, because structural change is slower, more conflictual, and far less theatrical than headline decisions.”
The RSP’s prompt proactiveness signals a can-do approach designed to placate voters impatient to see immediate change, and also to warn influential figures of the past three decades that anyone can be dragged to jail or put on the immigration no-fly list. The message is also to the bureaucracy to pull its weight, and clean up its act.&nbsp;
But in public discourse, there is also a sense that anyone critical of the government’s decisions can be targeted and trolled. Enthusiasm about the new government &nbsp;seems to outweigh critical and nuanced reasoning about whether ‘Balen Sarkar’ can achieve targets it has given itself within the self-imposed timeframe.&nbsp;
Any concerns about the RSP’s perceived high-handedness or criticism of state overreach tends to be dismissed, branded as noisemaking by mouthpieces of old parties.
Critics say the arrest of Oli, Lekhak others did not follow due process, and displays the very partisanship and vendetta tactics of the legacy parties that the RSP vowed to dismantle.
“The detentions and the plans this government has made for the next 100 days might be necessary, but they seem to be optimised for public spectacle and rather than being deliberative steps for sustained reforms,” says researcher Dovan Rai of Body and Data.
She adds: “K P Oli failed because he put himself above the system, and it seems as though that power has just transferred from one personality to another. What we need is strong institutions, not strongmen that play the role of hero or villain.”
The RSP’s strategy to overhaul the state apparatus is high-stakes, aspirational and at times unquantifiable. The new leaders and the public must recognise that Nepal’s problems cannot be solved in 100 days.
The near two-thirds dominance in Parliament offers the RSP a chance to show results, but it is also an unforgiving majority. Failure is not an option.
Adds Pukar Malla: Political leadership may drive change from above, but civil society and citizen networks have to partner from below.”
The NC and the UML are licking their wounds, and again proved their obsolescence this week by trying to rehabilitate and reinstate old leaders. The UML is on warpath, and missed another opportunity to turn a new leaf by rejecting 36-year-old Suhang Nembang as parliamentary party leader.
People who did not vote for RSP must give the party a chance to deliver on promises. But the party's most effective opposition may have to be its own voters, who must play the check and balance role by insisting on results, and preventing fawning support for populist leaders resulting in authoritarian creep. &nbsp;&nbsp;
“The public now plays a critical role in holding the leadership accountable, it must go beyond small wins,” says Dovan Rai. “Support must not come from opportunism, and criticism must not be based on prejudice.”

RSP dos and don’ts

The Rastriya Swatantra Party (RSP) that swept Nepal’s post-GenZ election last month has taken office at a fraught period in global geopolitics. The <a href="https://nepalitimes.com/opinion/the-myth-of-red-lines">war in West Asia </a>could potentially reshape the world order with far-reaching<a href="https://nepalitimes.com/news/fuel-price-shock-hits-nepal-aviation"> strategic and economic consequences for Nepal</a> and the region.&nbsp;
The foreign policy of any state is largely dependent on the <a href="https://nepalitimes.com/opinion/the-spheres-of-influence-illusion">extant structural features of the international system</a>, and Nepal and its remittance-driven economy faces a challenging geo-strategic environment.&nbsp;
The position of the United States in international affairs is still largely unrivalled, and provides a rather large window into the country. But the impact of greater Chinese power in Nepal is not yet properly understood, while India has always been and will continue to exert regional hegemonic influence.&nbsp;
With 5% of the global population contributing to 20% of the world economy, and flexing 50% of military might, the United States looms large just about everywhere in the world, including Nepal. Its rivalry with an emergent China puts Nepal in strategic proximity.&nbsp;
Whether it is the <a href="https://nepalitimes.com/here-now/mcc-gets-green-light-in-nepal">Millennium Challenge Corporation (MCC) project </a>or the State Partnership Program (SPP), if President Donald Trump and the State and Defense Departments want it done in Nepal, they will get it done. The more germane question is whether this is beneficial to long term regional peace and stability. That is a consideration Washington will surely have to take into account moving forward.
How all this corresponds, or not, to <a href="https://nepalitimes.com/news/nepal-india-power-play">Indian policy towards Kathmandu </a>is the real question that will affect Nepal, given the strained relations between Washington and New Delhi lately.&nbsp;
There should be no confusion that as far as New Delhi is concerned, Nepal is part and parcel of India’s grand security structure. It has always been so, going all the way back to the British period under Viceroy George Curzon, and perhaps even earlier.&nbsp;
The Chinese assessment of Nepal is defined by Beijing’s interest to ensure the stability and security of the Tibet Autonomous Region. Any great power wishes to expand its influence beyond its borders and China, after all, now considers itself a global power. It has the engineering and financial capability to project its interest on a neighbouring country like Nepal whose economy is 400 times smaller.&nbsp;
However, expansion of Chinese influence in Nepal becomes a <a href="https://nepalitimes.com/review/a-past-foretold">matter of historical significance</a> only because it comes up against what India regards as its sphere of influence. New Delhi’s power especially vis-a-vis neighbouring South Asian states is grossly underestimated. India is emerging as the next great power in Asia, and at the current juncture of history, China is unlikely to become an alternative to India in Nepal.&nbsp;
COUNTERWEIGHT
This is also improbable and impractical because of the current power distribution in the international system. The United States is an off-shore power balancer, and is unlikely to countenance projection of Chinese influence into Nepal beyond certain limits.
India is not just a fellow democracy, but also serves as a counterweight to US fears of Chinese dominance of Eurasia. Washington can be expected to exert ever possible influence to ensure that China is not a decisive power in Nepal.
It may be the case that Beijing does not wish to enlist itself in such a position either such a manoeuvre in the Himalayan frontiers of the Subcontinent could draw the United States still more deeply into the Nepal’s political tapestry.
The result would be a more combustible Nepal with too many friction points to manage, and lead to a veritable headache deleterious to regional peace and stability.
How the new government in Nepal maintains <a href="https://nepalitimes.com/news/rsp-dos-and-don-ts">domestic peace and stability</a> will be closely watched in the region. It is a question contingent on a wait-and-see approach, as there are too many variables at play which cannot at present be set into watertight prognostications.
Nepal’s domestic politics therefore is governed by<a href="https://nepalitimes.com/review/some-chicken-some-neck"> international developments</a>. The first quarter of the 21st century is already characterised by the interplay of interdependent variables.
As the geopolitical thinker Robert Kaplan describes it, conditions are taut like in a musical instrument where too much pressure at one point on the string can disrupt the entire system in ways that are unpredictable.
How that will play out in Nepal will be a function of the intersection of civilian and military leadership within Nepal, and the tripolar contestation of China, India and the United States in the region.
Bhaskar Koirala is an independent analyst associated with Peking University.&nbsp;

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