<figure><img width="1500" height="1125" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912118/636b8ab19c7e80680e06b255jpeg.jpg" alt=""/><figcaption>Sodasha Higher Secondary School in western Nepal is undergoing retrofitting as an earthquake preparedness model for future quakes in the region. Photo: NSET</figcaption></figure>With the <a href="https://www.nepalitimes.com/latest/western-nepal-potential-covid-19-outbreak/" target="_blank" rel="noopener">detection of three new COVID-19 cases</a> in Kailali district on Saturday, one of them the country’s first case of community transmission, western Nepal could be the epicentre for two disasters: a coronavirus hot spot, and a ticking time bomb for a mega-earthquake.This is not scare-mongering. Public health experts say western Nepal’s rudimentary healthcare system will be overwhelmed by a possible COVID-19 outbreak because at least 120,000 Nepali workers have returned from India without screening before both countries went into lockdown.   The government is extending rapid diagnostic testing to hospitals in Nepalganj, Dhangadi, Surkhet and Dadeldhura and there may be a surge in positive cases in the days ahead.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/returnees-may-be-taking-coronavirus-to-rural-nepal/" target="_blank" rel="noopener">Returnees maybe taking coronavirus to rural Nepal</a>, Mukesh Pokhrel and Sonia Awale<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/banner/rebuilding-five-years-after-2015-quake/" target="_blank" rel="noopener">Rebuilding five years after 2015 quake</a>, Alisha SijapatiHowever, there is another Damocle’s Sword that has been hanging over the region even before novel coronavirus – the likelihood of a catastrophic mega-earthquake. As Nepal marks the fifth anniversary of its 2015 earthquake, seismologists have warned that an even bigger megaquake is not a question of ‘if’ but ‘when’.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912118/636b8ab39c7e80680e06b256jpeg.jpg" alt="" width="252" height="128">The region between Pokhara and Nepal’s western border with India has not had a major earthquake since 1505 when an estimated 8.9M temblor killed one third of Kathmandu Valley’s population including the king, devastated north India, and created the debris fan from a cataclysmic flood on which Pokhara city is situated today.Speaking with Nepali Times, seismologist <a href="https://www.nepalitimes.com/editorial/aint-seen-nothing-yet/" target="_blank" rel="noopener">Roger Bilham warned</a> five years ago that the 2015 was not the Big One. He said the seismic gap in western Nepal had accumulated tremendous tectonic energy that had not been released for 500 years, and an earthquake was long overdue.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/past-disasters-foretold/" target="_blank" rel="noopener">Past disasters foretold</a>, Om Astha Rai<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/aint-seen-nothing-yet/" target="_blank" rel="noopener">Ain't seen nothing yet</a>, Editorial“There’s a plenty of stress stored for an earthquake above 8 magnitude in western Nepal, and it could kill at least 100,000 people in Nepal alone,” says Surya Narayan Shrestha of the National Society for Earthquake Technology (NSET). “But despite being the most at risk, western Nepal is less prepared and has relatively low awareness about earthquake safety, and this doubles its vulnerability.”In two weeks, Nepal will mark the <a href="https://www.nepalitimes.com/banner/rebuilding-five-years-after-2015-quake/" target="_blank" rel="noopener">fifth anniversary of the 25 April 2015 earthquake</a> yet neither the government nor the people seem to have learnt the lesson. Western Nepal, in particular, is ill-equipped to handle another major earthquake. <img width="640" height="480" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912118/636b8ab49c7e80680e06b257jpeg.jpg" alt=""><figure><img width="640" height="360" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912118/636b8ab79c7e80680e06b258jpeg.jpg" alt=""><figcaption> </figcaption></figure>A major earthquake of greater than An 8M quake in <a href="https://www.nepalitimes.com/here-now/past-disasters-foretold/" target="_blank" rel="noopener">western Nepal</a> would be felt even more strongly in Kathmandu Valley than the 7.8M disaster five years ago. Still, disaster preparedness experts say attention should now turn from the 14 districts in Central Nepal affected in 2015 to western Nepal.Before the COVID-19 lockdown, Nepal had begun to retrofit 2,200 classrooms in around 200 schools in four western districts Bardia, Surkhet, Jumla and Achham to be completed in four years with funding support of DFID UKAID under the Nepal Safer Schools Project (NSSP). NSSP is being implemented by a consortium led by Crown Agents together with NSET, Save the Children and Arup International and is aligned with and contribute to the Government of Nepal’s School Sector Development Plan (2016-2023) which includes a focus on School Safety and Disaster Risk Reduction. Prior to 2015, NSET had similarly retrofitted around 300 schools in Kathmandu Valley and surrounding areas which survived the earthquake and served as emergency shelters. However, <a style="letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/earthquake-an-opportunity-to-rebuilt-education-system-not-just-fallen-schools,2336" target="_blank" rel="noopener">nearly 8,000 schools were completely destroyed</a> in 2015, and colossal loss of lives was averted only because the earthquake struck on a Saturday.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/quake-was-a-learning-experience-for-nepals-schools/" target="_blank" rel="noopener">Quake was a learning experience for Nepal's schools</a>, Prakriti Kandel“We selected the schools in western based on vulnerability, potential for replication, availability of masons and enthusiasm of the school management committee,” adds Shrestha. “Next step is to scale this up and this means more investment, technical support and massive mobilisation of human resources.”Hospitals in western Nepal at the moment are all on red alert for a possible outbreak of COVID-19 in the region and healthcare workers are keenly aware of shortages of live-saving medical equipment such as test kits, ventilators, ICU beds, oxygen and personal protective gear. In an event of a major earthquake, this situation will be even worse because the hospital buildings themselves may be damaged.Three components within a healthcare facility determine if a hospital will be functional during an earthquake: seismic resistance of the building, state of power supply and medical equipment, and an emergency preparedness system with health workers trained for mass casualties.Dadeldhura hospital has been identified as a disaster management hub in Far West Nepal with satellite facilities in other district hospitals.“For the kind of earthquake projected here, none of us is prepared, western Nepal the least of all. We might have big hospitals in city centres but can the buildings withstand the quake is the real question,” says Bikash Gauchan of Bayalpata hospital in Achham.Few weeks before the earthquake struck in 2015, <a href="https://www.nepalitimes.com/banner/this-is-how-to-upgrade-nepals-rural-health/" target="_blank" rel="noopener">Bayalpata hospital had undergone reconstruction</a> to turn the institution into an eco-friendly, earthquake resistant facility. A disaster management protocol was also drawn up for triage in its emergency, as well as in and out patient buildings.Gauchan says hospitals in the Far West have to be prepared for multiple disasters: “We can’t overhaul our system every time a disaster strikes, be it the coronavirus or an earthquake. We need a standard operating protocol based on concrete national guidelines.”Back in 2003, Nepal government in collaboration with WHO had conduced earthquake vulnerability assessment of 15 major hospitals across the country that recommended they all be retrofitted. More than 15 years later, <a href="https://archive.nepalitimes.com/article/nation/preparedness-saves-lives,2264" target="_blank" rel="noopener">except from minor strengthening of health clinics</a>, nothing has been done.Hope now rests on the newly formed National Risk Reduction and Disaster Management Authority (DMA) which will replace the National Reconstruction Authority set up after 2015. Experts hope the focus will now shift to strengthening infrastructure of public buildings, transmission lines, telecommunication, sewage and water supply.Says Surya Narayan Shrestha at NSET: “We spent the last fives years mostly in the reconstruction of residential building and heritage sites in Central Nepal. Our priority now is on reinforcing infrastructure and ensuring essential services are better equipped to survive the next big one.” <h2>Preparing to be prepared</h2> <img width="1754" height="1146" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110912118/636b8aba9c7e80680e06b259jpeg.jpg" alt="">Nepal was just beginning preparations for risk reduction and management of disasters like earthquakes, floods, landslides and epidemics when the 2015 earthquake struck. This year, the Disaster Management Authority (DMA) has been formed which has listed 22 different kinds of disasters Nepalis are exposed to.The winter of 2017 saw 48 fatalities in a cold wave in the Tarai. Two years later, no one died in a similar cold wave. The Home Ministry’s Disaster Risk Reduction and Management Working Committee is credited with such pre-preparedness for blizzards, cold and heat waves, and monsoon floods.An average of 700 people die every year in Nepal due to disasters, most of these are weather related. The climate crisis is exacerbating extreme rainfall events, and the ministry has drawn up a Monsoon Emergency Workplan to address increased frequency and intensity fo floods.“We have to be prepared, and preparation is most effective when it is at the local level since they are the first responders,” says Anil Pokhrel of the DMA. With the help of the British aid agency DfID and the world Food Programme (WFP) the government is setting up Humanitarian Staging Areas in all seven provinces for stockpiling food and relief material for disasters. The central station was in operation at Kathmandu airport during the 2015 earthquake.New staging areas  in Dhangadi and Nepalganj were inaugurated by British Ambassador Nicola Pollitt and WFP’s Pippa Bradford recently (pictured above). Western Nepal is important because of the special seismic risk there. Each staging area can address the emergency needs of up to 70,000 people at a time. The staging areas house tents,  health and sanitation kits, water purifying equipment, fuel storage, satellite phones, search and rescue equipment and pre-positioned water supply.Proximity to the airport allows the relief material to be helicoptered out to the affected areas, and also to be resupplied from Kathmandu, quickly.Laxmi Basnet in Dhangadi

Sonia Awale

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

Epicentre of two disasters in West Nepal

<figure><img width="1140" height="550" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101136/636a23129c7e80680e0417c7jpeg.jpg" alt=""/><figcaption>Photo: Nature Communications</figcaption></figure>What makes Nepal scenic is also what makes it seismic. The country is located in one of the most vulnerable regions of the world for earthquakes, and our ancestors were used to them happening regularly. They knew that as they rebuilt after one earthquake, they had to prepare for the next one. A scientific paper published in <a href="https://www.nature.com/articles/s41467-018-07874-8" target="_blank" rel="noopener">Nature Communications </a>this month gives us a sobering reminder of this danger. Even as we catch up with reconstruction and rehabilitation after 2015, we have to scale up to the whole country our preparedness for the Next Big One.Himalayan earthquakes fall into two main types. There are moderate intensity quakes like the ones in 2015 and 2008 which are accompanied by a lot of shaking, but do not deform the surface. Then there are gigantic upheavals like the 8.3 magnitude 1934 quake epicentred in eastern Nepal which destroyed much of Kathmandu, and the 8.7 magnitude Assam earthquake in 1950, described as the greatest earthquake to hit the Himalaya in recorded history. Megaquakes like these uplift the surface and are what formed the Himalaya.Seismologists studying data from the 2015 event have concluded that the Gorkha Earthquake ruptured eastwards, and stopped underground somewhere south of Kathmandu Valley, and instead of releasing the stores stress, <a href="https://www.nationalgeographic.com/science/2019/01/earthquakes-priming-himalaya-disaster/" target="_blank" rel="noopener">increased tectonic tension</a> underneath Central Nepal. They say moderate quakes like 2015 can actually trigger future megaquakes as the rock layers release accumulated stress along faults.These urgent warnings came as Nepal marked the anniversary of the 1934 megaquake last week as National Earthquake Safety Day.Himalayan seismologist <a href="http://archive.nepalitimes.com/article/editorial/preparing-for-future-shocks,3472" target="_blank" rel="noopener">Roger Bilham</a> says the <a href="http://archive.nepalitimes.com/article/from-nepali-press/not-destructive-as-predicted-but-the-loss-is-still-great,2221" target="_blank" rel="noopener">2015 earthquake was not the Big One</a> which scientists had feared. In fact, it is still collecting energy beneath us and it could be let off in the near future just as the 1833 earthquake in Kathmandu was followed by another one 30 years later. The second quake this time could cause more damage because its epicentre may be directly beneath Kathmandu Valley. Added to the unfinished business of 2015, there is also the danger posed by the seismic gap in western Nepal which has not seen a megaquake since 1505. The western half of the country was not affected by 2015, and is at double risk because of the long seismic gap and relatively low awareness there about <a href="http://archive.nepalitimes.com/page/preparing-for-the-next-big-earthquake-in-nepal" target="_blank" rel="noopener">earthquake safety</a>.The focus on rebuilding in 14 districts of central Nepal hit by the 2015 earthquake should not stop us from getting western Nepal prepared for the Big One. Indeed, the whole of Nepal, northern India and the region should brace itself because a megaquake of 8.5 magnitude in western Nepal would cause widespread death and devastation across northern South Asia, which is the world’s most densely-populated region. Seismologists warn it could possibly be the worst disaster in human history in terms of loss of life.Response to the 2015 earthquake should now encompass the whole country, schools need to be retrofitted, hospitals and public buildings reinforced, and disaster management plans be put into place. But as with everything else in Nepal, we tend to focus on a disaster that has already occurred than on the one that has not struck yet. The answer may lie in provincial and local governments enforcing building codes and drawing up preparedness plans, a job for which the national government has so far been deficient. The 2015 earthquakes were an important <a href="http://archive.nepalitimes.com/news.php?id=19934#.WtRzzNRua71" target="_blank" rel="noopener">warning</a> for us to be better prepared for the really big one. Despite the tragic loss of 8,900 lives, <a href="http://archive.nepalitimes.com/article/nation/kunda-dixit-when-earthquake-struck-nepal,2214" target="_blank" rel="noopener">Nepal got off relatively lightly</a> three years ago for a quake of that magnitude. It struck on a Saturday when schools were closed, the telecommunication network was functioning, highways were open, electricity supply was restored fairly quickly and Kathmandu Airport was not damaged. Next time we <a href="http://archive.nepalitimes.com/article/editorial/big-earthquake-still-coming-nepal,2815" target="_blank" rel="noopener">may not be so lucky</a>. Monks in Tibet noted the exact time of the last big quake in western Nepal at 6AM on 1 June 1505. Estimated at 8.9, that earthquake devastated north India, destroyed Agra and other Moghul cities, may have trigged the Annapurna slope collapse that dammed the Seti River which burst to create the debris field where Pokhara is located today. There is now so much slip deficit beneath western Nepal that a sudden elastic rebound can move the entire half of the country southwards by a shocking 14m. The Gorkha Earthquake three years ago was just a forewarning of an even bigger disaster to come. <h2>10 years ago this week</h2> Ten years ago in <a href="http://archive.nepalitimes.com/issue/435" target="_blank" rel="noopener">#435 of Nepali Times</a> for 23-26 January 2009, Prashant Jha in <a href="http://archive.nepalitimes.com/news.php?id=15598#.XErqP1UzaUk" target="_blank" rel="noopener">his column Plain Speaking</a> wrote about the simmering anger in the Tarai two years after the Madhes uprising. Kathmandu's inability to heed this warning led to further violence when the constitution was promulgated in 2015. Excerpt:Two years after the Madhes movement altered Nepali nationalism, the Tarai is in a mess.Anger against Kathmandu was the defining feature of this period. Now, a mix of disillusionment, rage, helplessness and fear prevails. Macro politics is more fragmented than ever, across party and caste lines. And at the micro level violence has become the only tool to resolve political and personal disputes.Kathmandu can appoint a credible minister for Tarai affairs to handle political grievances, local killings, micro disputes, administrative weakness, agreement implementation. Full time, sensitive, and sincere engagement with the plains is the only hope.<a href="http://archive.nepalitimes.com/issue/435"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101136/636a23159c7e80680e0417c8jpeg.jpg" alt="" width="509" height="816"></a>

AIN’T SEEN NOTHING YET

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.