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

In the aftermath of the GenZ protests last month, as new PM Sushila Karki chose the first members of her Council of Ministers, youth collectives urged that it reflect the country’s diversity by including women, youth and people from various ethnic and socio-cultural backgrounds.&nbsp;
It took another couple of weeks for Karki to include &nbsp;bureaucrat and public health expert Sangeeta Mishra as &nbsp;Health Minister in her next tranche of ministers. Almost immediately, people dug up a video of Mishra calling herself “Nepali, but a native Indian”.
She was telling it like it was: Mishra is a naturalised Nepali citizen. But there was outrage in the ultra-nationalistic cybersphere. Mishra’s name was withdrawn from the list of ministers, with government officials citing an ongoing investigation at the CIAA.&nbsp;
With her Cabinet still incomplete a month after taking office, Prime Minister Karki was preparing to induct GenZ as ministers. A leak in the media floated the names, one of which was of Tashi Lhazom, a climate activist and filmmaker from Humla’s Limi Valley.&nbsp;
Almost immediately, social media erupted with discriminatory, xenophobic and misogynistic epithets against her: that she supported a separatist movement, that she was a foreign agent, that her citizenship was disputed, that she did not ‘look’ or ‘speak’ like a Nepali.&nbsp;
Political figures like Gyanendra Shahi, a prominent voice calling for the restoration of a Hindu monarchy, added fuel to the fire by making bigoted and false remarks about her heritage.
The former Commissioner of the National Human Rights Commission, Mohna Ansari, wrote on social media that it was shameful to question Lhazom’s identity: ‘Ms Tashi Lhazom is as Nepali as you are. Our society’s ugliest face and biggest flaw is doubting our own. Real patriotism embraces diversity — fake nationalism must end.’
Ansari, a human rights lawyer and activist, has also often been subject to Islamophobic and derogatory comments on digital platforms. &nbsp;
In response, the Indigenous GenZ Collective released Lhazom’s Nepali citizenship certificate to debunk the mistruths spreading on digital as well as mainstream media.
What makes a Nepali? What does a Nepali look or sound like? Who is a Nepali?
‘Had my name been Tashi Poudel, Thapa, Bhattarai or Ghimire, this would not have happened,’ Lhazom said in an interview with Kantipur following an avalanche of bigotry against her. ‘They questioned me because I do not look Nepali, or speak Nepali like a Khas. Because it is not my mother tongue.’
It is an indictment of Nepali society that indigenous Nepalis have to present proof, at the slightest inconvenience of mostly the dominant groups, of being a citizen of this nation simply because they might not fit into an imagined idea of Nepali nationhood by virtue of physical appearance, speech, geography, or faith.
And while we celebrate the successes of Nepal-born naturalised foreign citizens (some now hold elected office in the US) we refuse to afford the same respect to naturalised Nepali citizens, and those born in Nepal to excluded groups, nor do we expect them to work in the national interest if they are given responsibility to govern. And women are singled out twice as much for scrutiny.
Then cyber Nepal went into a tizzy when videos appeared of a biker’s group clad in black t-shirts emblazoned with the acronym ‘TOB’ which was interpreted to stand for ‘Tibetan Original Blood’ and linked to the Free Tibet movement.
The accusations snowballed into disinformation, xenophobia, and even calls for violence against Nepalis of Tibetan heritage and the Tibetan community in Nepal.&nbsp;
In the aftermath of the September protest, the hope was that politics and the bureaucracy would finally be rid of orthodox political actors. But first, we as a nation need to collectively examine the biases and bigotry that exist in Nepal’s socio-cultural space.&nbsp;
Otherwise, Nepal’s multiculturalism will be limited to just words in the Constitution and political tokenism.
No one who is in government now or in future can be expected to be completely free of subjective opinions, ideology, affiliation to a cause, or prior activism. And such criticism falls disproportionately on activists, advocates, and members from underserved and underrepresented communities.&nbsp;
One cannot be apolitical and hope to participate in politics, and as we move forward to rebuild the system it must not just reflect diverse communities, but also celebrate diversity of thought and beliefs.&nbsp;
Resorting to ethnocentrism, racism and chauvinism with conspiracy theories and discriminatory dog-whistling about fellow citizens is a disservice to Nepali nationhood. It is Nepal’s diversity that makes us strong.&nbsp;
Shristi Karki

What makes a Nepali?

In the very first page of the first chapter of Nepal 2043: The Road to Prosperity are two maps. The first places Nepal right at the epicentre of Asia, and in the second the Kathmandu is at exactly the midpoint between Mumbai and Beijing. With his trademark optimism, author Sujeev Shakya says Nepal is not land-locked but land-linked to three billion people in China and India. We just need those two economic engines to pull us in the same direction. ‘With China and India becoming the two largest economies in the world in the next two decades … Nepal is the most valuable piece of real estate in the world,’ Shakya writes. For one thing, Nepal does not look beyond India and China for tourism — with the right policies it can attract millions of tourists just from those two countries. Nepal is set to graduate from a low- to a middle-income country by 2026 and to a high-income country in 2043 — hence the name of the book. The year 2043 in the Bikram Sambat calendar is also 2100 — a new Nepali century. The book delves into the past, present and future of Nepal and analyses enablers including hydropower, a fundamental transformation of which will drive the 2043 goal. The commoditisation of electricity will be the biggest transformation. Nepal can deploy ‘Cyber Gurkhas’ to attract foreign investors with the management of data centres with climate friendly renewable energy. Access to technology such as precision agriculture, a data-driven approach to farming to improve food production, reduce environmental impact and enhance profitability could be Nepal’s strategy into 2043 and beyond. ‘Earlier, we needed ploughs and strong hands in agriculture. Now, you need a computer and strong fingers,” Shakya writes, citing a neighbour’s son who inspects his crops from drone cameras. A farmer in an Ilam teashop tells the author he asks AI questions in Nepali, and it answers promptly. The biggest enabler of all is Nepal’s young demography with 62% of the population in the active 15-60 age bracket, while 28% are younger than 14. Nepal’s dependency ratio has dropped to the lowest in history with 100 Nepalis having to support 62 dependents. But this demographic dividend window is closing. Nepal’s total fertility rate declined from 2.62% in 1981 to 0.92% in 2021 — below replacement level. We have less than 30 years left to make the best use of the youth, many of whom are currently studying and working abroad. Nepal’s biggest resource, therefore, is its diaspora spread across the world who send home $20 billion a year. Migration is not just a necessity but an aspiration for many Nepalis, and they are an important source of contacts, investment and soft power. This young and educated group has taken advantage of connectivity and digitisation in all arenas of national life. TikTok and Instagram have become e-commerce platforms, or mobile app-riven digital services. Nepal’s software companies exported over $1 billion worth of IT products last year. Next we need a change in the bureaucratic mindset to eliminate paper and manual processes, which would also contribute to reducing corruption. Shakya comes up with many revelations: 81% of Nepalis live in houses they own, much higher than most other South Asian countries which means higher disposable income. Nepal has the highest tax-to-GDP ratio in South Asia. The banking sector is twice the size of Bangladesh despite Nepal having just one-fifth of its population. In 2021, 12.62% of the population had demat accounts in Nepal, while India had only 5.32%. For every five male investors, there are four women in Nepal while it is 10:1 in India. With such figures and prospects, how come Nepal just went through a violent uprising that took the shortest time to topple a democratically-elected government in modern history? One early chapter of 2043 is actually dedicated to how Nepalis have always thrived on chaos. When people faced up to 20 hours of power cuts a day, people worked around the load-shedding schedule, woke up at ungodly hours to cook and stock up on inverters. They did not put up a fight, or even protest. ''Generally, Nepalis are used to taking things lying down, and perhaps this also needs to change,' says Shakya, writing that line before last month’s uprising. ‘On the one hand, some of these issues speak volumes about the average Nepali’s patience and perhaps optimism that things will change in the long run. On the other hand, one is also forced to wonder how much longer they will be able to put up with unfavourable conditions if things don’t change.’ It does seem Nepali had enough with corruption, governance failure and political apathy to the concerns of ordinary people. The final chapter lists the non-negotiables to realise the 2043 Nepal Roadmap: democratic values and freedom of speech, a capitalist welfare state and socio-political transformation to tackle corruption and impunity. The book notes, ‘Countries transitioning to democratic rule experienced a 20% increase in GDP over a 25 year period compared to what they would have achieved under authoritarian regimes. After the end of the Shah rule in 2006, Nepal’s GDP rose from US$10 billion to US$44 billion by 2024.’ The government’s Vision 2030 document projects Nepal’s GDP at US$100 billion, and the Vision 2043 estimates that it will be a US$423 billion economy with a per capita of US$12,100. However, it will need more than optimism and practical action to make these projections real. China and India loom large throughout the book with examples of small city states like Singapore which have taken advantage of their strategic location. Despite the tension between India and China, the two will have to collaborate given the inherent advantages. China has replaced the United States as India’s biggest trading partner. Sujeev Shakya is a great admirer of former Singaporean diplomat and author Kishore Mahbubani, and he has written a blurb for the book. He quotes Mahbubani saying that for the past 2,000 years, apart from the last two hundred, Asian countries have dominated the world, and it is quite natural that the world’s economic centre is returning to Asia. And Nepal is strategically placed to make the most of it because of its location between two of the world’s fastest growing economies. We just have to get our politics right, and have a strategy for equitable growth in the new Nepali century.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251016091052_78b2d1495d59cd492a17693e0e770b65230c7cb749393ac6643f4676b73832ef.jpg" data-media-id="editor_0" data-image-id="20251016091052_78b2d1495d59cd492a17693e0e770b65230c7cb749393ac6643f4676b73832ef" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Sujeev Shakya book details NT"></figure>

Retrofitting Nepal for future shocks

We were used to getting stuck in Kathmandu’s notorious traffic with gas fumes and horns blaring. We are still stuck in traffic, but now it is mostly the quiet hum of EVs, and street-level air is noticeably cleaner. Alongside Norway, Nepal has the highest combustion-to-EV conversion rates in the world. And we are not even a middle-income country yet. How did we get here?&nbsp; For the first time in Nepal’s history, 2025 saw an unprecedented turn of events: two back-to-back auto shows a week apart in August, independent of each other. This was timed for the warm up to the Dasain season. &nbsp;&nbsp; The first auto show 6-11 August was the <a href="https://naimanepal.org/mobility-expo" target="_blank">NAIMA Mobility Expo 2025 </a>by the newly established Nepal Automobile Importers and Manufacturers Association which saw 35 new models, many of them EVs with 50 participating brands like Toyota, BYD, Hyundai, Kia, MG, Mahindra, Omoda &amp; Jaecoo, Proton and Leapmotor.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_d8c03f5141f0086814d866543af4d95310f340a7191363e4705aedda8e4b73d0.jpg" data-media-id="editor_1" data-image-id="2025101711108_d8c03f5141f0086814d866543af4d95310f340a7191363e4705aedda8e4b73d0" data-rendition-name="original" width="1770" height="1097" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  The exhibition had a strong focus on two-wheelers aimed at affordable and easy mobility in a town now known for long traffic jams (see report). NAIMA attracted a record 100,000 visitors in six days.&nbsp; The second one was the Nepal Automobile Dealer’s Association Auto Show 2025 (<a href="https://youtu.be/emSd0mUuMjU" target="_blank">NADA</a>) to address the growing demands for cars and two-wheelers. It was a natural expression of new market forces at work, on one hand, and popular taste, on the other — one influencing the other.&nbsp; This year’s NADA Auto Show was its 17th iteration, and carried a hefty legacy: exhibiting a contemporary lineup from manufacturers such as Tata, Suzuki, Xpeng and Nammi, but also classics for vintage car lovers like the 1928 Ford Model A and a rare 1955 Austin Princess Dm4 sedan.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_dda7d264ddb12448cc10d9b1cb699632eee975741fc4c56055e4df904579c34f.jpg" data-media-id="editor_3" data-image-id="2025101711108_dda7d264ddb12448cc10d9b1cb699632eee975741fc4c56055e4df904579c34f" data-rendition-name="original" width="1381" height="848" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  It also showcased the Deepal eVTOL (a 2-seater drone), and a humanoid robot with dog. Curious onlookers at Bhrikuti Mandap thronged the show with footfall crossing 170,000.&nbsp; Earlier this year, I had traveled to attend India's largest auto show, the <a href="https://youtu.be/OgIIvXx6yOM?si=zNmMgklzCJpagTye" target="_blank">Bharat Mobility Global expo</a> in January in New Delhi. It was part of a <a href="https://youtu.be/GT6LBKiJvyg?si=r7YaxahjSAnsIfBY" target="_blank">roadtrip</a> from one capital to another with BYD Nepal on a Dolphin. The journey took three days through Bhairawa and then the Lucknow-Agra Expressway, covering a distance of 1200km one way.&nbsp; The drive through the horrid Narayanghat-Butwal corridor alone was testimony that EVs are no longer fragile and could handle a beating. And while both Nepal's economy pales in comparison to India, it was evident that the private passenger segment is well on its way to electrification. More than 70% of all vehicles sold in Nepal last year were electric. Sales representatives are unanimous: inquiries for EVs are at an all-time high and overshadow demand for ICE (Internal Combustion Engine) vehicles. Besides four-wheelers, a fast-growing proportion of scooters were also electric.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251017111016_e4cd988ca915ddd283a86d48fac332f22f98ff776b3d22391e10156ad56d7a1a.jpg" data-media-id="editor_6" data-image-id="20251017111016_e4cd988ca915ddd283a86d48fac332f22f98ff776b3d22391e10156ad56d7a1a" data-rendition-name="original" width="1389" height="863" loading="lazy" alt="Electric cars in Nepal"> </figure>  I have spent the last two years <a href="https://youtu.be/256YQa37Ol8?si=Sv1wQ8EdvgMCiTM_" target="_blank">reviewing</a> many of these EVs. The days of batter-powered cars being small toy cars, with sub-par build quality and the range of golf carts have long gone.&nbsp; Fit and finishing in both Chinese and Indian EVs are comparable to established brand names even in Japanese and European markets. But most significantly for us in Nepal, battery technology and range have made inter-city travel on our highways imaginable. The media sometimes portrays Nepal as a prime testing/dumping ground for EVs due to lack of regulation and the proximity to the world’s largest EV exporter (China) and our tough geographical conditions. That is just a part of the story. What actually stands out is the incredible appetite for risk among Nepali buyers.&nbsp; Since the Covid pandemic charging infrastructure has spread across the country. My early trips between Kathmandu and Pokhara saw the possibility of topping up with just one charging gun at the <a href="https://rsr.com.np/" target="_blank">Riverside Springs Resort in Kurintar</a> – and I would have to wait in line, or the charger simply would not be working.&nbsp; These days, by the time I cross Kurintar from Koteswor in my Kona, I will have passed at least 10 charging stations with multiple guns. &nbsp; On my <a href="https://www.youtube.com/@casuallyannoyeddriver" target="_blank">YouTube reviews</a>, people from across the globe ask about range and handling EVs on poor road conditions like ours. The occasional skeptics also leave comments like: ‘If this works in the higher altitudes and mountainous roads of Nepal, then it should be a breeze down here in the flats of Australia and/or hills around Auckland!’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251017111016_8b4fbe59884538849be6428eb2ce9249627a8970ed9ef4cd3c792682bf26dbed.jpg" data-media-id="editor_10" data-image-id="20251017111016_8b4fbe59884538849be6428eb2ce9249627a8970ed9ef4cd3c792682bf26dbed" data-rendition-name="original" width="1139" height="787" loading="lazy" alt="Electric cars in Nepal"> </figure>  SATURATION? However, both the NAIMA and NADA auto show also confirmed that we could be hitting a peak EV. From having just one car in one budget segment, there are now multiple alternatives stretching from the entry of below Rs3 million to the premium and high-end Rs 10 million price point.&nbsp; Furthermore, the price wars on EVs that started in China a year ago have also trickled across to Nepal. Models such as the <a href="https://youtu.be/3wFN2I81Tq0?si=T6L4SAfRpoyNNvYC" target="_blank">MG S5</a>, Nammi Vigo, BYD Atto 2 (and 1) and <a href="https://youtu.be/y214kWbWTc4?si=bIevanDZEPQdkEs4" target="_blank">Deepal S05</a> saw aggressive pricing schemes and discounts that disrupted pre-existing quotas. Consumers can suddenly afford a lot more cars, and travel a lot further for a considerably smaller price tag.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_276afec1bdbd37497572939a4eada4bef74c9d075cd5851892c4dd1985edb9c5.jpg" data-media-id="editor_13" data-image-id="2025101711108_276afec1bdbd37497572939a4eada4bef74c9d075cd5851892c4dd1985edb9c5" data-rendition-name="original" width="1953" height="1107" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  However, booking numbers at both auto shows did not necessarily translate into actual deliveries. The fact remains that almost 80% of registered vehicles in Nepal are still two-wheelers, and GDP per capita stands at just $1500 — among the lowest in the world.&nbsp; This means that early first-adopters are first-time buyers, and the remaining customers in the market are more skeptical and less willing. But there are also those that are unlikely to consider the EV suitable to travel to off-road rural areas. For the average Nepali family, upgrading or purchasing a new car is no small decision. It happens in five years or more with resale values being a big determinant. The EV boom may be reaching saturation.&nbsp; Both NADA and NAIMA shows drove home the message that Nepal’s transport sector is on an electric fast-track, but the road ahead will be bumpy.&nbsp; Soon after the shows, the glacial debris flow on the Bhote Kosi knocked out the Rasuwa-Kerung border with China, and earlier landslides had already blocked the Koradi checkpoint. Manufacturers are now using the less convenient Korala border in Mustang. BYD, Leapmotor and Omoda &amp; Jaecoo have begun rerouting their vehicles to make up for delivery deadlines.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025101711108_62fd70a476656062005959c247b38178d8efabf8570c73929295c0a103ff4013.jpg" data-media-id="editor_14" data-image-id="2025101711108_62fd70a476656062005959c247b38178d8efabf8570c73929295c0a103ff4013" data-rendition-name="original" width="1438" height="1031" loading="lazy" alt="Electric cars in Nepal NT"> </figure>  Although the distance from the capital to the Korala border (470km) is four times longer than from Rasuwa (128km) &nbsp;and Tatopani (112km), it is still considered faster and more cost effective than shipping via India using sea routes.&nbsp; And then Nepal was engulfed in turmoil after the youth-led protests of 8-9 September and its aftermath. Many automobile showrooms around Thapathali including Tata, Hyundai and CG were vandalised and torched.&nbsp; Sushila Karki leads a caretaker government till elections are held in March, and the unsettled situation will affect the economy and investment climate as well as the automobile sector. Arnav Upadhyay reviews automobiles and promotes road safety under the handle Casually Annoyed Driver on <a href="https://www.youtube.com/@casuallyannoyeddriver" target="_blank">Youtube</a>, <a href="https://www.tiktok.com/@casuallyannoyeddriver" target="_blank">Tiktok</a> and <a href="https://www.instagram.com/casuallyannoyeddriver/" target="_blank">IG</a>, and this monthly column Drive Line in Nepali Times.

Is Nepal reaching peak EV?

Nepali Times: You just climbed Mt Everest without oxygen and then skied down the mountain. How does one even train for something like that?&nbsp; Andrzej Bargiel: What made skiing down Everest possible was all the years of experience I’ve gained in high-altitude mountains. Spending a lot of time in the high mountains helps me read the snow, the conditions, and potential hazards. I need to ski often, especially in steep and exposed terrain, so that it becomes a place where I feel completely at home.&nbsp; I also climb regularly, I am an IFMGA mountain guide. I also run, ride a bike, and work out in the gym. Like in any endurance sport, I have to prepare my body for the demands of an expedition.&nbsp; What motivated you to do Everest? This was actually my third attempt on Everest. After many years of ski mountaineering and racing, I felt it would be great to use that experience to take on a meaningful project in the Himalaya. It’s about exploring what’s really possible, testing my limits, and seeing how far I can go. I was inspired by people like Davo Karničar, Fredrik Ericsson, and Hans Kammerlander, who showed that skiing in the high mountains can truly be done.&nbsp; What do you have to be most careful about when skiing at such high altitude? You really have to manage your energy well, because you need to be ready to spend many hours at very high altitude — even above 8,000 meters. Risk management is essential. You have to read the signals nature gives you and make the right decisions, choosing safe moments to move. The dangers are always there: avalanches, crevasses, extreme fatigue, and exposed terrain, so you have to stay fully aware and focused. Safety comes first, always. You also need to stay open to changing your plans, because in the mountains, things don’t always go the way you expect.&nbsp; Why did you choose autumn and not spring?&nbsp; Autumn is really the only season when you can think about making a full ski descent from the summit all the way to base camp. In the spring there’s much more ice left after winter, and the snow cover is broken. A full descent simply isn’t possible then, because too much rock and ice are exposed. Of course, in spring it’s easier to climb the mountain. The conditions are more stable, the snow is firmer, there’s less avalanche risk, and you don’t have to wade through deep snow. The autumn ascent is very complex and demanding, which is why so few expeditions attempt it. But in autumn, skiing becomes possible. Several meters of fresh snow fall on Everest’s slopes, covering the rocks and ice, and that transforms the mountain into something wild, beautiful, and most importantly skiable. What was your favourite part this time? The moment I remember most fondly was reaching the summit — and that first stretch just below the top, when I clicked into my skis and started moving down through surprisingly nice snow. It felt smooth and natural, a kind of free, easy glide down toward the Hillary Step. I could feel the movement, the flow, and at the same time this awareness that I was skiing from the highest point on Earth. It was just a really good feeling. The Icefall was another special moment. I felt from a skier’s point of view that it really worked. I could make my turns, and the descent itself was fun, technical, but a beautiful one too — full of variety, weaving through ice towers and seracs that looked incredible in the sunlight. It was challenging, but also just pure joy.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251015141012_e9e671e07b089a7d59e4b9ba34df993180ae2dfcae3786113a4d48c515427b3d.jpg" data-media-id="editor_0" data-image-id="20251015141012_e9e671e07b089a7d59e4b9ba34df993180ae2dfcae3786113a4d48c515427b3d" data-rendition-name="original" width="1365" height="2048" loading="lazy" alt="Andrzej Bargiel NT"> </figure>  And what was most challenging? The hardest moment came on 14 September, during our first summit push attempt. We were breaking trail in deep snow and reached the South Col in the evening. I already knew we wouldn’t be going higher that night, so I decided to stay there, to use the climb to acclimatise.&nbsp; But after that attempt failed, the team completely lost faith that the project could still succeed. Almost everyone started packing up, convinced it was over, nobody thought that the snow would stabilise enough.&nbsp; I skied down from the Col early the next morning in really good conditions, while the rest of the team descended on foot. Rebuilding belief within the team that it could still be done was the toughest part, mentally. It took me several days to bring that energy and motivation back, to make everyone believe again that we could try once more. What was your support crew like?&nbsp; I want to thank the whole team — all team members from Poland, all those who contributed to the project, all the sponsors, and the Seven Summit Treks crew, especially Dawa Sherpa, who had the courage to go to the top with me.&nbsp; In the end, his courage made it possible. Doing it alone would have been almost impossible. With him there, I felt safe, and that made all the difference. What potential for skiing do you see in the Himalaya?&nbsp; Huge. There’s massive potential here both for ski touring and for a more recreational form of skiing. In the Himalaya, there are so many mountains you can ski from, and they don’t have to be eight-thousanders.&nbsp; There is an incredible amount of snow even in the lower valleys during the winter, which makes it a really interesting place for skiing. You can find great powder and enjoy long, wide runs.&nbsp; The key, I think, is to keep developing local guiding structures. There should be more certified guides in Nepal, Sherpas gaining guiding qualifications, and a proper professional rescue service. That would definitely increase the sense of safety for both skiers and tourists coming to the mountains. I’d love to come back to the Himalayas one winter just to ski in those lower parts — in deep snow, on much longer and wider skis – that would be pure pleasure. At those lower altitudes, the fun can be so much greater, with a more relaxed, freeride kind of feeling.

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