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

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Why Nepal’s poverty rate is stuck

From high school, Nepali students memorise that Nepal is an ‘agricultural country’, and that 80% of the population is engaged in farming.
While it is true that most Nepalis are still dependent on agriculture, the country’s economy is shifting to services. Seven in every ten families also depend on remittances for household income.&nbsp;
Agriculture now contributes less than 25% to Nepal’s economy, and this is down from 81% three decades ago. The number of Nepalis engaged in the service sector used to be only 16% at that time, and today it has gone up to 29%.&nbsp;
Nepal’s economy has been transformed in recent decades during which new professions, businesses and enterprises have flourished. The finance, information technology (IT), hospitality, trade and other sectors have expanded.&nbsp;
Meanwhile, the role of agriculture in Nepal’s economy has diminished.&nbsp;
The strength of a country's economy is measured by the total value of goods and services produced annually, its GDP. Economies are divided into three sectors of activity: agriculture and forestry, manufacturing and construction and the service sector, which includes IT, finance, insurance, real estate and tourism.
Economies move through a cycle of expansion from the primary to the secondary to the tertiary sectors. Many developed countries are considered to have advanced because of the industrial sector.&nbsp;
However, Nepal’s industrial sector has not grown in comparison to other nations. Indeed, while the industrial sector contributed 8% to the economy 50 years ago, it reached a peak of 21% some decades later, but at present has declined to 12.5%.
<div class="embed-block"><iframe src='https://flo.uri.sh/visualisation/18533507/embed' title='Interactive or visual content' class='flourish-embed-iframe' frameborder='0' scrolling='no' style='width:100%;height:600px;' sandbox='allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation'></iframe><div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/18533507/?utm_source=embed&utm_campaign=visualisation/18533507' target='_top' style='text-decoration:none!important'><img alt='Made with Flourish' src='https://public.flourish.studio/resources/made_with_flourish.svg' style='width:105px!important;height:16px!important;border:none!important;margin:0!important;'> </a></div></div>
Industry is supposed to enhance production and in the process create jobs. But Nepal’s weak industrial development is one of the factors that drove 690,000 Nepalis to go abroad last year.&nbsp;
The lack of industrial growth has meant that Nepal depends largely on the third service sector stage, which makes up almost two-thirds of the nation’s economy.
Nepal’s economic change has been brought about by a lack of meaningful growth in the agricultural and industrial sectors, as well as improvements in Nepal’s service sector.
“But this is only structural change, not a structural transformation needed for radical improvements to the economy,” says economist Dilli Raj Khanal. “For there to be such a transformation, we need to up our productivity in all sectors: agriculture, industry or service.”
The service sector also has inherent risks. While a small number of people involved in the service sector can increase production and add value to the economy, it may not create many jobs.
Moreover, because the service sector mostly involves educated, tech-savvy and business-minded people, its benefits are mostly limited to their circles, increasing socio-economic inequality.&nbsp;
“The service sector yields more products despite fewer people being engaged in it, meanwhile agricultural production is declining &nbsp;despite the involvement of a significant section of the population,” says Khanal. “We must thus find ways to increase both production and income in the agricultural sector.”
In the last three decades, the agricultural sector in Nepal has only grown at the rate of 2.9% annually, while the growth rate of the service sector during the same period has been 6.3%. So while the service sector is expanding, there has been no comparative increase in agricultural production, which in turn means that the income of Nepali farmers has not increased either. That further widens the gap between rich and poor.
<div class="embed-block"><iframe title="The shifting landscape of the economy" aria-label="Interactive area chart" id="datawrapper-chart-8wpWL" src="https://datawrapper.dwcdn.net/8wpWL/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="600" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}(); </script></div>
A 1% growth in the agricultural sector plays an equal role in reducing poverty as a 6% growth in the service sector. Says economist Biswo Poudel, professor at Kathmandu University: &nbsp;“Farmers directly benefit from agricultural reform, but an economy boosted by the service sector does not reach those communities.”
The average annual per capita income of Nepalis is $1,434 compared to $824 ten years ago. Despite this, the benefits have not been equally spread across communities. Those involved in the service industry, which has contributed to economic growth, have reaped the rewards. Farmers have just not enjoyed similar profits.&nbsp;
“As it is, there is little possibility for expansion in the agricultural sector because we can neither increase the arable land nor productivity,” notes Hem Raj Regmi at the National Statistics Office.
It is not that newer ventures have not been launched in the last decade. For instance, while the banking and insurance sector contributed less than 3% to Nepal’s economy 20 years ago, it now makes up 7% of the economy.
Similarly, the share of the administrative sector has gone from 2% to 10% in the last 2 decades. But the share of the manufacturing and industry in the economy has fallen below 5% as compared to 9% two decades ago.&nbsp;
Economist Poudel argues that increased agricultural production can lead to further economic growth in Nepal, provided there is an expansion of irrigation and transfer of agricultural technology.
There are almost 2.27 million hectares of irrigable land in Nepal, out of which 800,000 hectares do not have irrigation. Moreover, only one-third of the over 1.4 million hectares of land that have such facilities remain irrigated year-round. The rest are rain-fed fields.
“The greatest challenge Nepal faces is to create jobs in the agriculture sector as well as ensure a decent income,” says Regmi of the National Statistics Office.

Nepal economy shifts away from farming

Nepal has shut down dozens of social media platforms in a move that is widely seen as an effort to tax the revenue they generate in the country, and to control content critical of government. The sites were blocked as of midnight on Thursday, 4 September and affects all Meta products including WhatsApp and Messenger, Threads, and others. Although YouTube, Google and X are also on the government’s list, they were still working as of Friday midday.&nbsp; The government says it took the action after repeated warnings to the platforms to open offices in Nepal, a Cabinet decision last month setting a deadline, as well as a 17 August Supreme Court ruling also requiring them to register and pay requisite taxes. However, the Bill cited in the ban, ‘The Operation, Use, and Regulation of Social Media in Nepal’ has not yet been passed by Parliament. Some social media platforms which were already paying taxes in Nepal even though they are not officially registered, have also been blocked. The move is the latest in <a href="https://nepalitimes.com/news/big-beautiful-bills" target="_blank">a slew of draft legislations</a> designed to undermine Nepal’s open society. A Bill amending the Print and Publications Act would allow district bureaucrats to shut down media. Another draft Bill would allow political appointees to head a new Media Council with the power to revoke the licenses of journalists.&nbsp; A counter-intelligence Bill would let just about anyone in government to arbitrarily tap phones, read emails and trail citizens. On Wednesday the government announced new immigration requirements that would allow it to track the movement of all foreigners in the country. Yet another draft Bill has been set to Parliament to dissolve the <a href="https://archive.nepalitimes.com/news.php?id=10675" target="_blank">Social Welfare Council (SWC)</a> and move registration and monitoring of non-governmental organisations, nonprofits and charities to the Ministry of Social Welfare. Seen in this light, the blockage of social media platforms this week is seen as the latest government attempt to constrict freedom of press. Nepal is one of the few remaining open societies in Asia, and now appears to be drifting towards authoritarianism. The government’s sudden shutdown of social media has been greeted with howls of protest on platforms that still remain open, like Viber and TikTok, as well as in Nepal’s mainstream press. Even senior members of the ruling UML-NC coalition have sharply criticised the move, asking if the government is trying to “turn Nepal into North Korea”.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656.jpg" data-media-id="editor_2" data-image-id="2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656" data-rendition-name="original" width="4280" height="5187" loading="lazy" alt="social media ban in Nepal"> </figure>  The Regional Director of the New York-based Committee to Protect Journalists (CPJ) Beh Lih Yi said in a statement: ‘Nepal’s sweeping ban on social media sets a dangerous precedent for press freedom. Blocking online news platforms vital to journalists will undermine reporting and the public’s right to information. The government must immediately rescind this order and restore access to social media platforms, which are essential tools for exercising press freedom.’ Besides undermining press freedom, blocking social media platforms will also hurt commerce and the economy since so many small and medium business trade through Instagram, Facebook and other platforms. Nepal’s vibrant social media has also been a boost or citizens to assert identity, build solidarity against injustice and play an adversarial role when the mainstream media does not do it. Social media platforms have also become the tenuous link for Nepali families scattered across the world to keep in touch with each other — its importance growing with the increasing size of the diaspora. The government wants social media platforms to register, pay taxes and remove posts on their sites that ‘undermine the national interest and Nepal’s territorial integrity, disturb social and religious harmony’.&nbsp; In response, rights activists have said while there is need for the government to regulate extreme content and hate speech, officials appear to be more intent on clamping down on free speech and trying to force platforms to share the revenue. On Friday, the government had allowed WhatsApp back online, but there were reports that it had instructed the Nepal Telecommunication Authority (NTA) to instruct mobile and internet service providers to block by Friday night all platforms, including Facebook, Instagram, Messenger, WhatsApp, X (Twitter), YouTube, LinkedIn, Reddit, Threads, Snapchat, Pinterest, Signal, Clubhouse, Rumble.&nbsp; Platforms that have registered and are allowed include TikTok, Viber, Nimbuzz, Popo Live, WeTalk, Global Diary and the Nepali portal Hamro Patro. TikTok was banned last year for ‘disturbing social harmony’ and it was lifted after the platform registered its office in Nepal. But even while it was banned, many users simply switched to VPN. Telegram was also banned for ‘financial crimes’ and it has since also been allowed back. NTA officials confirmed that some Asia-Pacific regional offices of platforms, including Meta had been in touch overnight inquiring about the registration process.&nbsp; Nepal is not alone in regulating social media. China bans most Western platforms, Russia and Turkey regulate their and require platforms to locate their data servers in the country. Gulf countries allow social media but keep a tight control on dissent.&nbsp; Experts have said even the government will not dare close down YouTube since so many Nepali individuals and companies make money with posts on that platform, and closing it would also impact on Google and Gmail. Facebook had also just launched a monetisation scheme for videos and reels, and Nepalis uploading content would lose revenue.&nbsp; Blocking the platforms has already hit content creators, influencers and cut small businesses from reaching customers. A survey of social media use in Nepal by Sharecast Initiative showed that 94% of those with smart phones used YouTube, followed by Facebook (92%) while TikTok was in the 50-60% range. X and Instagram were in the single digits. A YouTube ban will also hurt the mainstream media since up to 20% of the revenue of Nepal’s main tv channels came through YouTube. Some 11.1 million Nepalis watch YouTube content every day, the survey showed. ‘For global giants like Meta or Google, Nepal is a small market, and they may not even flinch — but for millions of Nepalis, these platforms are central to daily life, livelihoods, and connections across the world,’ wrote AI consultant Naresh Newar in a LinkedIn post. Some experts said the government’s sweeping ban on social media networks was untenable and the government would be forced to rollback sooner or later. Said editor Shiva Gaunle: “The platforms had given citizens a voice and broken the monopoly of the government, legislators, the courts and journalists over public opinion. This is an effort to reassert that monopoly, but Nepal can never be turned into a North Korea.”

Protest grows against Nepal’s social media ban

As arson and violence swept Nepal’s capital, Prime Minister K P Oli resigned on Tuesday. However, this did not stop angry protesters from setting fire to the Parliament building, homes of ministers, hotels and other property. Singha Darbar is also in flames. Meanwhile, former Prime Minister Sher Bahadur Deuba and his wife, Foreign Minister Arzu Rana Deuba were also attacked in their house. As protests spread, Police withdrew from guarding official buildings, and thousands of protesters entered the federal government secretariat at Singha Darbar, ransacking and setting fire to buildings.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_a86227e5556356134565053699ed9599f8b268d0c22815fa94410ffac52a49fa.jpg" data-media-id="editor_0" data-image-id="20250909120916_a86227e5556356134565053699ed9599f8b268d0c22815fa94410ffac52a49fa" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="de-escalation"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_995f368b8c372bf2f99b6a9c25c2816e941413b3c19d0f94458c07604391b039.jpg" data-media-id="editor_1" data-image-id="20250909120916_995f368b8c372bf2f99b6a9c25c2816e941413b3c19d0f94458c07604391b039" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Kathmandu Valley was shrouded in smoke under heavy monsoon clouds on Tuesday afternoon with an acrid smell covering the capital. The minister’s quarters in Bhaisepati were set on fire, the convention centre in Godavari, the Hilton Hotel and Chhaya Centre in Thamel, and the headquarters of all three main parties were also burning.&nbsp; The widespread arson was sparked by the <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">killing of at least 19 young protesters</a> as they tried to storm Parliament on Monday. A peaceful rally by youth against corruption and nepotism by Nepal’s GenZ movement in Kathmandu escalated after the killings. With the prime minister out of the picture, the government not visible and the security forces in retreat, protesters have had the run of the three cities of Kathmandu Valley.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_207c3c25f8aa9bd0934b8c98ccee1221e3a062815cfcb1e211deddb4dccd6511.jpg" data-media-id="editor_3" data-image-id="20250909120916_207c3c25f8aa9bd0934b8c98ccee1221e3a062815cfcb1e211deddb4dccd6511" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120920_bb2c0f273dc95ef62c58b5f55045c58cbddc4b3b8f619e938be76ef2cda69468.jpg" data-media-id="editor_4" data-image-id="20250909120920_bb2c0f273dc95ef62c58b5f55045c58cbddc4b3b8f619e938be76ef2cda69468" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Nepal’s celebrity cricket captain Paras Khadka has appealed to to call off the agitation, saying: “The prime minister you wanted to kneel has already knelt.” Former prime minister and Maoist ideologue Baburam Bhattarai called for the formation of an interim government that included some young student leaders. He called for the agitating groups to find a solution from within the Constitution and a directly elected presidential system. All members of the opposition RPP and the RSP have resigned from Parliament, while party supporters entered the Nakkhu Jail and freed the RSP leader Rabi Lamichhane who had been detained for the past 8 months by the Oli government on charges of embezzlement. Some of the protesters also want an end to federalism, which was also the demand of opposition parties like the RSP and the pro-monarchist RPP. Chief Minister Satish Kumar Singh has stepped down. Many of the protesters have voiced support for Kathmandu Mayor Balen Shah, who &nbsp;posted on Facebook calling on the GenZ protesters to “be ready to talk to the Army … but only after Parliament has been dissolved”. Army Chief Ashok Raj Sigdel and the heads of security agencies have called on the protesting groups to excercise restraint and to find a solution through talks.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120912_cd93a827631d987ee52723aa270faf45aa42e4322eb8f06304b28215e3cea28a.jpg" data-media-id="editor_5" data-image-id="20250909120912_cd93a827631d987ee52723aa270faf45aa42e4322eb8f06304b28215e3cea28a" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Although the <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">protests were sparked by the GenZ campaigners</a>, disparate groups, including monarchists, anti-federalists, disgruntled Maoists, dissidents from the mainstream parties, and others have joined the protests. But one thing that united them is extreme frustration with the mainstream parties and their leaders past and present who have taken turns running and ruining the country.

Kathmandu burns despite PM resignation

Many had never heard of <a href="https://www.haminepal.org/">Hami Nepal</a>, the organisation that is part of the GenZ movement that did not just topple the government this week, but <a href="https://nepalitimes.com/news/what-next-nepal">pushed Nepal’s political system into new, uncharted territory</a>. It was part of an organic coming together of various youth groups fed up with Nepal’s corruption, mismanagement and lack of accountability. Hami Nepal and its GenZ comrades are now part of the negotiations with the Army to form an interim government. Hami Nepal is a non-profit dedicated to supporting communities and individuals in need, guided by its motto ‘For the People, By the People’. Its core mission is to assist individuals and communities in need, particularly during emergencies and crises, with a focus on directly connecting donors with recipients, and delivering aid efficiently and transparently. It was set up after the 2015 earthquake, but was formally registered and gained recognition in 2020 during the Covid-19 pandemic. Hami Nepal is led by 36-year-old civic activist Sudan Gurung, and mentored by renowned ophthalmologist Sanduk Ruit. Gurung started the organisation after he lost his own son in the 2015 earthquake, and now has over hundreds of thousands of members, growing by the hour.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250911090920_34e57abe26d5b243a6c2d0c01215d2e7b55c7b36a3c13b9f82d421b9588482b9.jpg" data-media-id="editor_2" data-image-id="20250911090920_34e57abe26d5b243a6c2d0c01215d2e7b55c7b36a3c13b9f82d421b9588482b9" data-rendition-name="original" width="707" height="647" loading="lazy" alt="Who, or what, is Hami Nepal?"> </figure>  Leading up to the events this week, it played a central role in guiding the demonstrations, using its Instagram and Discord platforms to circulate protest information and share guidelines. Other GenZ groups used their own WhatsApp groups and other fora.&nbsp; Among the 20 or so volunteers is Ronesh Pradhan, who spoke to <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">Nepali Times on 8 September </a>morning during the GenZ rally, before the violence escalated.&nbsp; “The voices of young people matter. We can’t keep being ruled by the same old men,” Pradhan said. “Our generation is the future and if there are older leaders in government, they need to be competent and accountable. We are ready to lead this country forward.” Hami Nepal’s earliest visible campaigns include donating more than 400 blankets to Bir Hospital’s Covid unit in 2022, creating a plasma and oxygen bank during the pandemic, and distributing school jackets to children in rural districts. More recently, it mounted a relief effort in response to the 2023 Jajarkot earthquake, reaching over 13,000 families with shelter, food, and medical support. The organisation was also associated with the two-month ‘Save Ghopa’ campaign, demanding effective and smooth administration of the BPKIHS (B P Koirala Institute of Health Sciences) in Dharan. The organisation was also actively engaged in providing rescue and relief during the Kagbeni and Sindhupalchok floods this year. It even sent aid to Turkey after its 2023 earthquake. After the Kavre floods last year, Hami Nepal donated solar lights. Funding for Hami Nepal comes directly from public donations, with a policy of channeling 100% of received funds for aid distribution. Volunteers self-finance administrative costs, and the group publishes detailed expenditure figures, regularly sharing updates and transparency reports through their social media and website which it launched at its Annual General Meeting in Bhaktapur last year.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88.jpg" data-media-id="editor_4" data-image-id="20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88" data-rendition-name="original" width="1080" height="719" loading="lazy" alt="Who, or what, is Hami Nepal?"> </figure>  Following the death of Nepali student Prakriti Lamsal at KIIT University in India earlier this year, Hami Nepal advocated for justice using its Instagram account, raising concern about the safety of Nepali students. Its advocacy platform started with rescue and relief, and Hami Nepal managed to develop a track record for efficient campaigns and transparency in Nepal’s humanitarian landscape. But its work pushed the group to realise that there was a deeper malaise in Nepali society. Its #youthsagainstcorruption campaign on social media platforms gained rapid momentum, and that led to the rally on 8 September. Read also: <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">Nepal’s 8 September massacre</a>, Shristi Karki The international #Nepobaby trend on TikTok propelled the rally even more, and young Nepalis used it to expose the scions of powerful politicians and politically-connected influencers who were exhibiting their flashy lifestyles on social media while citizens struggled with joblessness, corruption and poor service delivery. Public anger reached a tipping point when the UML-NC coalition led by Prime Minister K P Oli announced a sweeping ban on major social media platforms citing tax revenue, cyber security, and lack of content moderation. Netizens, civil society and media, however, saw it as the latest authoritarian attempt by the government to clamp down on free speech, increase surveillance of citizens and constrict Nepal’s open society. Susmita Khadka, 22, told us at the rally: “Politics is everywhere. Gen Z has the most platforms, and we want a revolution.” Leading up to 8 September, the GenZ movement disseminated information and reassured participants with volunteers readily available for help, medical support, and assistance. It put up a protest support helpline so that students needing assistance could get help. As the protests intensified, leaving at least 20 dead outside Parliament, and forcing Prime Minister K P Oli to resign, Hami Nepal shifted into a mediator role, engaging in talks with officials and seeking GenZ’s views on future leadership.&nbsp; Influencers like TikToker Nimesh Shrestha publicly backed the group, amplifying their voice in ongoing negotiations with the Nepal Army alongside other GenZ representatives. However, as the protests escalated on 9 September, <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">resulting in massive arson and vandalism of public and private property</a>, many GenZ activists disavowed association with the attackers, saying their movement had been infiltrated. The group backtracked, with Gurung saying he was not the leader of the protests.&nbsp; Meanwhile, others accused Hami Nepal for singlehandedly speaking with the Army chief, and said that they did not represent GenZ’s collective voice. Most GenZ supporters backed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">Former Chief Justice Sushila Karki</a> as their candidate for interim prime minister in an online group. Not everyone in the GenZ movement agrees with that choice, with support for Kathmandu Mayor Balen Shah, even though he has endorsed Karki’s appointment. Dharan Mayor Harka Sampang rushed to Kathmandu on Wednesday to push his own candidacy. Hami Nepal has supported Balen Shah to lead the country for the next five years, not just during the interim period, and have called on the public to share their posts supporting Shah to amplify the message. With the old guard gone, there is a power vacuum with multiple actors with competing interests to fill it. GenZ’s youth-led activism has brought new energy for political reform, but its real test begins now — whether it can unite Hami Nepal and other sections to negotiate with the Nepal Army.&nbsp;

Who, or what, is Hami Nepal?

A rally organised by young Nepalis across the country against corruption, impunity and restrictions on freedom of expression on Monday turned into one of the deadliest days in the country's recent history. As of Monday evening, the death toll from the protest had reached 19, with 17 killed in Kathmandu and two in Itahari. More than 350 people were injured. Police have arrested more than 40 protesters. Home Minister Ramesh Lekhak of the Nepali Congress resigned, and there have been calls from opposition parties for the entire NC-UML coalition to step down and announce early elections. The protest followed a growing online movement led by young Nepalis exposing the ostentatious display of privilege by the offspring and relatives of politicians and other public figures, which had sparked discourse about nepotism, corruption and the wealth gap in Nepal. Confronted with joblessness and corruption, Nepali youth looked to the recent street movement in Bangladesh, where a student uprising against quota-based recruitment for government jobs expanded last year and toppled the autocratic Sheikh Hasina government. In Indonesia, public frustration with government apathy boiled over into a national movement last month after it emerged that elected officials and the political elite enjoyed perks while citizens faced a cost of living crisis. In the Philippines, as disaster mitigation-infrastructure projects failed to work, citizens began to question where the funds for such projects were actually going. This prompted social media users to look deeper into the lives of the politically-connected figures who flaunted their lavish lifestyles online. In Nepal public outrage has been building up against nepotism, corruption and impunity in government. Facing unemployment at home, nearly 10% of Nepalis, mostly youth, toil overseas or leave Nepal in search for better lives abroad. Meanwhile, the well-connected posted images online of themselves enjoying holidays abroad paid with the ill-gotten wealth of relatives in high places. Young GenZ Nepalis, frustrated with establishment politicians, had called for an anti-corruption, anti-government movement across the country. This coincided with the Nepal government’s decision on 5 September to ban 26 social media sites for failing to register and pay taxes in Nepal.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250908120956_53f97cf0de3ddc8d5c823686f56e71981df922d0ecd2989ad842245acdf71aa6.jpg" data-media-id="editor_0" data-image-id="20250908120956_53f97cf0de3ddc8d5c823686f56e71981df922d0ecd2989ad842245acdf71aa6" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Gen Z protest"></figure>  Faced with the government's social media blockade, the protests took to the street. The movement was supposed to be apolitical, and focused against corruption. It garnered support from public figures and opposition leaders, some of whom conveniently forgot that they had been in government when the TikTok ban was imposed in Nepal in 2023. On Monday morning, protesters showed up at Maitighar with slogans and placards, many of them college students, even school children. The organisers had called for young Nepalis to join in their uniforms, believing that it would protect them from violence that might occur during the course of the day. By mid-morning, thousands of Nepalis had gathered at the Mandala intersection, playing music and chanting slogans. The mood was almost festive. Shortly after noon, however, a rally that had begun peacefully descended into violence after protesters broke the police barricade in Baneswor to storm Parliament. Police first began firing tear gas and water cannons, and then live ammunition at demonstrators. The Kathmandu district administration is said to have authorised full use of force against protestors who vandalised public property after protestors infiltrated the Parliament grounds.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090818090_84e4a5bdcf19aa3cbf03831140120c88d9f3fe5a12d47041588fea7409988e67.jpg" data-media-id="editor_1" data-image-id="2025090818090_84e4a5bdcf19aa3cbf03831140120c88d9f3fe5a12d47041588fea7409988e67" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Gen Z protests"><figcaption>Photo: SUDIKSHA TULADHAR</figcaption></figure>  Organisers Hami Nepali had requested demonstrators to go home as the protests turned deadly, saying that those who stormed Parliament were not associated with them, hinting that the rally had been infiltrated by radical groups. But by that time, the demonstration had got too large to contain. In the ensuing violence, hundreds were left injured, including journalists, and 17 dead so far in Kathmandu. Nepal’s leadership and security forces do not seem to have learnt their lessons about managing mass protests after the pro-monarchy demonstrations in March in which two people were killed. The indiscriminate use of force against unarmed Nepalis turned into a massacre. The emergency wards in Kathmandu are filled with those with bullet wounds on their legs, arms and heads. Hospitals have called for blood donations. At the time of publishing, there has been no statement from the Prime Minister, who before the protest on Monday had belittled GenZ youth as being naive, wet behind the ears, and their movement being ‘led by provocateurs’. Oli has presided over a slew of Bills to constrain the press, social media, and civil society, he has silenced and mowed down competitors and critics within his own party. This week, the UML got rid of age and term limits for party chairmanship, effectively clearing the way for 74-year-old Oli to head the party for the foreseeable future. Also feeding into the anger in the GenZ protest was a CCTV clip of a young woman being hit on Saturday at a zebra crossing by the car of a provincial minister in Godavari. The video of the car speeding away without stopping went viral on TikTok, one of few social media platforms still functioning.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090818090_35799a98e5a7f5f865bb6f94633059d2baa66ec57ea0d396ab020f2f8f912387.jpg" data-media-id="editor_2" data-image-id="2025090818090_35799a98e5a7f5f865bb6f94633059d2baa66ec57ea0d396ab020f2f8f912387" data-rendition-name="original" width="854" height="641" loading="lazy" alt="Gen Z protest"><figcaption>Photo: SANGYA LAMSAL</figcaption></figure>  Oli fuelled the outrage by dismissing the victim’s injury as “minor”, and accusing political rivals of magnifying the issue. Opposition leaders and members of civil society have called for the government to resign en masse, and the fourth-largest party in Parliament, the RSP, has called for a snap election. As per his agreement with the NC, Oli is supposed to hand over power early next year to its leader ’s Sher Bahadur Deuba. Some analysts have suggested that if Oli did the handover now, he could help defuse the situation and earn brownie points ahead of the 2027 elections. But such political calculation would belittle the tragedy that has befallen the families of the 19 who were killed on Monday. Nepal’s political leadership cannot think that just reshuffling its three-card prime ministerial deck will quell public anger now. Nepal’s next generation wants to uproot the rot of corruption from politics, governance, and the bureaucracy. It wants elected leaders to deliver services, provide jobs and raise living standards. Monday’s massacre has only made them angrier, and bolstered their resolve to lead from the front.

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