<img width="1648" height="512" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161152/636d1e639c7e80680e0af409png.png" alt=""/>Standard Chartered in its 35th Annual General Meeting recorded operating and net profits of Rs2.01 billion and Rs1.40 billion respectively in 2020/21. The AGM approved payment of cash dividends of 3.06% and bonus shares of 10% to the shareholders. The bank posted a growth of 26% on its risk assets to reach Rs72.95 billion, deposits declined marginally by 3.30% to Rs 95.99 billion.

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Standard Chartered's AGM

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171144/636bd96a9c7e80680e080211jpeg.jpg" alt="" width="2880" height="1920"/><figcaption>Anirvan Ghosh Dastidar, Chief Executive Officer for Standard Chartered Bank in Nepal.</figcaption></figure>Meet Anirvan Ghosh Dastidar, Chief Executive Officer for Standard Chartered Bank in Nepal. Before arriving in Kathmandu last year, he served as CEO of bank in Brunei, Philippines and Sri Lanka. Nepali Times spoke to him about the current Covid-19 crisis and its impact on financial systems worldwide and in Nepal.Nepali Times: What is your assessment of Nepal's macro-economic situation and the risks to the banking sector? Anirvan Ghosh Dastidar: Nepal’s GDP composition is largely driven by the service sector which amounts to more than half of the total output. The pandemic has rapidly slowed down this sector which maybe causing majority of the aggregate demand subdue. A slowdown in services also means both consumption and production would be impacted since interlinkages between services, agriculture and manufacturing are very high in our economy. Though it may seem on the outside that Nepal’s economy is only consumption led – Nepal’s interlinkages to the global economy on both demand and supply drivers are very high. This also is one reason that the credit demand is quickly picking up after the lockdown was lifted which can be seen from the CCD ratio – since Nepal’s economy is dependent on drivers that may not need so much time for recovery like remittances and the service sector to drive majority of the demand, and, imports to drive majority of the supply.Banks in Nepal are directly impacted by how the economy performs since there are no complex financial instruments in the system that stabilise or delay the impact of economic shocks. Most real GDP economic forecasts for Nepal have relied on a few assumptions: there will be localised lockdowns only until the end of 2020 and cases will gradually decline, economic activities will gradually return to normal starting 2021. Forecasts based on these assumptions estimate Nepal’s real GDP growth to be between 2 to 2.5% for 2020. I have a similar assessment for Nepal’s macroeconomic situation: if there is no second wave and there only are local lockdowns until the end of 2020 – Nepal will gradually go into the recovery phase and it will be quick due to the drivers of our economy.Nepal Rastra Bank has allowed rescheduling and restructuring loans, would this provide relief or just postpone the problem given that economic activity is not picking up? This would be completely dependent on how the economy would recover. If there is no recovery of economic activity, given a subdued demand, the problem would be there irrespective. In this case, there is no other option but to reschedule and restructure loans with an expectation that in the recovery phase things will get back to normal – this trend can be seen across the world, not only in Nepal. I think the factor causing the problem here should be understood well – the Central Bank Policy has in no way got to do anything with the problem, in fact these regulations are there by definition to ease the burden for all stakeholders in the system. The problem is external, which is dependent on market forces and these factors are beyond anyone’s control given the global pandemic. I am in fact appreciative of the efforts Nepal Rastra Bank has taken to stabilise the negative economic impact caused by this crisis – the impact would have been much worse if it were not for the effective actions of our Central Bank.There was always a chronic liquidity crisis among Nepal's banks, but that is not the reality now. Would this not be a time to prime up investment? This is largely dependent on what you are investing in. However, on a broader scale, trying to invest now just because there is liquidity and prices of certain markets are low, would be a myopic view – one might also argue that interest rates are down so credit is cheaper. However, I think the fundamental laws of the markets and economics cannot be ignored. As long as the economy is down, so is the aggregate demand. When aggregate demand is down, an overall subdue in economic activities is bound to exist – this is a vicious cycle. Having said that, Nepal’s economy is slowly picking up because of an ease in the lockdown, but not in all sectors. I would thus say investment decisions would depend more on the sectors involved. The same time maybe prime for some sector and some investments, when it is not for some.Do you see the possibility of mergers of financial institutions during this crisis? There is no straightforward answer when it comes to mergers of financial institutions, and there are various academic arguments on various variables from economies of scale, synergy, efficiency of the industry, quality of assets and returns of the market the financial institutions are operating in. The sky is the limit for these variables. One can add the geographic argument and build a spatial model, one can also argue that traditional models miss the current trends of digitisation or new trends in the economy which may also have different implications to the debate and add these variables. Arguments also differ because of the tools and models which are used to analyse these variables – ranging from Optimized Mathematical Game Theory Models, Time-Series Econometric Models to even Economic General Equilibrium Models. Therefore, commenting on the possibility of mergers is very complicated and this should be based on various factors that are important to the market and industry in question. Ultimately, however, there are fundamental rules always govern any banking industry: a bank needs to be profitable to sustain and should comply with the rules laid forward by the Central Bank.What would be Standard Chartered’ s strategy to ride out this crisis, and indeed see it as an opportunity for expansion? There was an interesting article in <a href="https://hbswk.hbs.edu/item/why-japan-s-businesses-are-so-good-at-surviving-crises">Harvard Business Review</a> on the Japanese way of dealing with a crisis which points towards a long term outlook of the society a business operates in. This article argues that the more we contribute towards the overall development of the economy and communities in the economy, the more we benefit. I think our purpose also follows the same concept which includes a focus on the long-term prosperity and economic development of Nepal which in-turn has a direct relationship to the banking industry’s health. We are committed to the sustainable growth priorities of Nepal and are focused on helping businesses and communities revive post Covid-19.Having said that we have had our share of learnings during the pandemic and we have already devised plans to refresh our operating models. Our plans are geared towards enhancing our digital capabilities to support clients with their banking needs. We also feel, as have many institutions internationally, that our operating model will also consist of a refreshed health and safety standard where there will be a certain element of working from home even after the Pandemic. I think our focus is more towards supporting our clients recover from this crisis and keeping our colleagues safe, more than expansion.

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“We are focussed on post-Covid revival of Nepal’s business”

<figure></figure>										<img width="1698" height="1176" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109151112/636bb58f9c7e80680e07bc0djpeg.jpg" alt=""/><figcaption>Illustration: CIJ NEPAL</figcaption>												Top secret documents prepared by the US government’s Financial Crimes Enforcement Network (FinCEN) and leaked to the media have revealed $2 trillion in suspicious money transfers, and include files that involve some of Nepal’s top banks.The information is contained in ‘Suspicious Activity Reports’ (SARs) sent by banks to the American financial watchdog between 1999 to 2017, and most involve transactions with countries on which the US has imposed sanctions, like Russia, North Korea, Iran and Cuba, or Chinese companies which Washington has blacklisted. Some of these SARs involve transfers through Kathmandu-based banks, and by Nepali firms a few of which appear to be front or fake companies, or ones that are defunct. Banks report transactions when they suspect that money laundering or criminal activity is suspected, but they do not necessarily mean that the companies or individuals named have broken the law.The Nepal files contain transactions made through nine banks, 10 companies and other individuals between 2006-2017 and include some of the big names in banking. However, the companies are less well known, and some of the individual names appear to be security guards or Nepali overseas workers sending money home. Even so, some of the Nepal-based companies named appear to have been involved in smuggling gold, antiquities, or trading in asphalt and telecommunication equipment. The transactions flagged in the FinCEN leaks in Nepal were through Standard Chartered Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank.The leaked documents contain the names of 10 little known Nepal-based companies including Rauniyar Brothers &amp; Co of Birganj, Subha Samriddhi Traders Pvt Ltd of Kathmandu, Shasta Trading Company, Setidevi Export Import Pvt Ltd, L D International Pvt Ltd, Felt and Yarn Pvt Ltd, Woman’s Paper Crafts, Acme Money Transfer Service, and Sunny Enterprises. Some these were never registered, others appear to be front companies, and some are closed. Of the nearly $300 million worth of transactions through Nepal that were flagged in the FinCEN documents, $177.6 million were bank transfers of which $103 million were transferred out of Nepal and $74.6 million were remitted into the country. There were also $48.2 million worth of possibly illegal transactions in various countries with Nepal links, and another $75 million transactions not in Nepal, but involving Nepali-sounding surnames and addresses. Most of the transactions in the FinCEN leaks that raised red flags, including those by Rauniyar Brothers and Shubha Shambridhi Traders, involved over $70 million in Letters of Credit through Standard Chartered Bank in Nepal and its branches abroad. The Rauniyar transactions went through the Dubai-based Kite International FZE, and involved import and export of petroleum products. They were sourced from Bandar Abbas port in Iran in contravention of US-sanctions, and the shipment documents were reportedly forged to look like they came through Dubai.When asked to respond, Pranu Singh of Standard Chartered Bank Nepal said the bank was bound by client confidentiality and did not comment on specific cases. ‘The reality is that there will always be attempts to launder money and evade sanctions,’ she wrote in an email reply. ‘We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programs.’  The other companies involved appear to have been involved in using banking channels to fund gold smuggling operations via jewellery companies in Hong Kong and Dubai between 2009-2011. Some banking transactions appear to have been listed in the SARs because they involved Chinese telecommunication company ZTE that is on a US blacklist, while others were  transfers from Nepal to known tax havens like the British Virgin Islands, Seychelles and Luxembourg.  The leaked files also include transfers of amounts as small as $120-500 to Nepali companies and from Nepali workers in Iraq and other countries that for some reason were in the suspicious activity reports sent by corresponding banks as long as ten years ago. However, some of the companies listed, like Woman’s Paper Crafts, are not even officially registered in Nepal.Two separate reports in the FinCEN leaks concern possible payments for smuggled Nepali religious artifacts. Standard Chartered Bank New York flagged American Nancy Wiener Gallery and several other dealers suspected to be involved in the illegal trade of antiquities. Some of them were linked to Subhash Kapoor, an Indian national and the Art of the Past Gallery owner in New York, who used to facilitate artifacts smuggling from India to the United States. He was arrested by Interpol in 2011 at Frankfurt airport.Nancy Wiener Gallery was cited in the FinCEN leaked files for suspicious transactions worth $27 million between 2010-2017. This is the same gallery that sold a stolen 16th-century bronze from Nepal in 2010 and transferred the payment to Pantheon Worldwide in Hong Kong. The bank that filed the suspicious activity report said: ‘The transactions appear to be related to antiquities that were potentially purchased and sold illegally.’Nepal’s Money Laundering Prevention Act requires banks and financial institutions to report suspicious transactions to the Nepal Rastra Bank’s Financial Information Unit (FIU). The Act bars clients from making transactions under anonymous or fictitious names. Financial institutions also need to keep a separate record of transactions of high-ranking officials in the political, administrative, and judicial spheres. Although some of the suspicious transactions in the FinCEN report are dated, there appears to be a gap in the way Nepal’s banking sector monitors international transfers. This poses a serious challenge, and could push Nepal towards an international blacklist of high-risk countries.Nepal Rastra Bank Governor Maha Prasad Adhikari says Nepal has enacted laws against money laundering and has set up a Financial Information Unit (FIU) at the central bank. “However, having legal provisions doesn’t mean that money laundering will not happen. We don’t claim that we are good at implementing laws, but it’s getting better as time passes,” Adhikari added. “We have fined six banks and financial institutions for mishandling Know Your Customers forms and failing to monitor and report money laundering. Nepal Rastra Bank is committed to preventing money laundering. There won’t be any ifs or buts.”The latest ‘<a href="https://www.buzzfeednews.com/article/jasonleopold/fincen-files-financial-scandal-criminal-networks" target="_blank" rel="noopener noreferrer">FinCEN Files</a>’ contain top secret financial records obtained by BuzzFeed News and shared with the <a href="https://www.icij.org/investigations/fincen-files/" target="_blank" rel="noopener noreferrer">International Consortium of Investigative Journalists (ICIJ)</a> and other news organisations. In Kathmandu, follow up investigations were conducted by the <a href="https://cijnepal.org.np/fincen-files-nepal-nexus/" target="_blank" rel="noopener noreferrer">Centre for Investigative Journalism Nepal (CIJ-N)</a>.Krishna Acharya, Ramu Sapkota and Shiva Gaunle. Arun Karki and Pramod Acharya also contributed to this report.Centre for Investigative Journalism Nepal

Nepal figures in leaked money laundering report

Nepal’s only international aviation gateway, at Kathmandu airport, will cut night-time operation hours to allow construction of taxiways, and airlines have been told to curtail flights. This is expected to lead to more than normal chaos during the height of peak autumn and spring tourist seasons at an airport that is congested even at the best of times. The airport will close from 10PM to 8AM from 8 November-31 March 2025. The taxiways will now connect to the thresholds at both ends of the runway, making the airport more efficient in handling higher frequencies of landings and takeoffs. The parallel taxiway extension will allow international flights to land every 4 minutes instead of the current every 7 minutes. At present planes have to wait to land until a plane taking off backtracks along the runway.&nbsp; Kathmandu is Nepal’s only airport with international operations, and it has only one runway that is only one way in from the south over the mountains. With the taxiway improvement, the airport will be able to handle 42 aircraft landings and takeoffs per hour — double the current capacity.&nbsp; The Civil Aviation Authority of Nepal (CAAN) has been trying to entice international airlines to also start flying to and from the other two international airports at Pokhara and Bhairawa (Lumbini) by slashing landing and handling charges. But so far only Nepal Airlines operates a weekly flight to Bhairawa from Kuala Lumpur.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32.jpg" data-media-id="editor_0" data-image-id="20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32" data-rendition-name="original" width="2356" height="1134" loading="lazy" alt="Kathmandu airport expansion"> <figcaption>Kathmandu Airport Expansion plan with extension of taxiways to the thresholds of runways 02 and 20 that will limit airport operations from 8 November 2024 - 31 March 2025. Areas in blue are existing structures, including the international terminal which in future will be the domestic airport, and the new international terminal near the north end of the runway,</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a.jpg" data-media-id="editor_1" data-image-id="20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a" data-rendition-name="original" width="1353" height="1328" loading="lazy" alt="Kathmandu airport NT"> </figure>  CAAN has reportedly told international airlines to cut their flight frequency to Kathmandu citing the shorter operation hours and has told budget airlines to shift some of their flights to Pokhara or Bhairawa, or face cuts. Many airlines currently operate regular flights to and from Kathmandu between 10PM and 8AM: Air Arabia to Sharjah, Fly Dubai to Dubai, Jazeera Airways to Kuwait, Cathay Pacific to Hong Kong, Singapore Airlines, several Nepal Airlines flights, and one of four daily flights by Qatar Airways to Doha. Jazeera Airways, FlyDubai, and Thai AirAsia have applied and got permission from CAAN to begin regular flights to Bhairawa’s Gautam Buddha International Airport. Starting 9 November, FlyDubai will start making a stopover in Bhairawa before flying on to Kathmandu. Immigration, customs and security are all fully functional in Bhairawa. In Kathmandu, the next phase of the airport upgrade includes converting the current international terminal for domestic operations, the construction of a new international terminal where the domestic departure area is now, as well as moving the hangars and the Nepal Army Air Wing to the eastern side of the runway. The apron area will also double its parking space for widebody jets. This is part of a Airport Capacity Enhancement Project that was initially funded through a $80 million loan from the Asian Development Bank (ADB), and the entire masterplan is expected to cost $800 million. This project is the latest upgrade to Nepal’s only international airport since it saw its first flight in 1949. The current international and domestic terminals are too small to handle the current annual traffic volume of 8.5 million passengers a year that is growing at 20% a year.

Kathmandu airport to cut flight hours

As Kathmandu becomes more congested and polluted, and with remote online work becoming the norm, many professional Nepalis are planning to retire in Pokhara, or move there.&nbsp; With its stunning mountain panorama, balmy winters and proximity to a profusion of wilderness areas, builders are responding to this demand with new townhouses, housing development and apartments. One such block of flats is the 10-storey <a href="https://sungavaapartment.com/">Sungava Apartment</a> located at Phulbari above the Seti River, near the point where it flows into and under Pokhara. The imposing structure near Manipal Hospital is almost complete, and on a recent visit the site was strewn with huge boulders unearthed while digging the foundation.&nbsp; The Seti brought down these boulders during a gigantic flood that geologists estimate happened 800 years ago when a chunk of Annapurna IV broke off and ploughed into the glacier below. Today, Sungava (means ‘orchid’) sits safely on a high terrace, 100m above the blue-green Seti and commands a view of Dhaulagiri, Annapurna South, Machapuchre, Annapurna III and IV.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9.jpg" data-media-id="editor_1" data-image-id="2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9" data-rendition-name="original" width="2016" height="1512" loading="lazy" alt="High living below the Himalaya NT"> </figure>  The soil here is conglomerate that has solidified like concrete, and the boulders were extracted by heavy earthmovers. It is intriguing to think that these metamorphic rocks as big as cars, rounded by glacial grinding, were once a part of a much higher Annapurna IV. Even for those with little interest in geology, Sungava is an ideal place to contemplate the tectonic forces that pushed these peaks into the sky to be sculpted into delicate shapes by wind, snow, earthquake and avalanche over millions of years. The view of the Himalayan panorama from Sungava’s many balconies are breathtaking when not obscured by clouds, or the haze that drifts in from across the southern border. On most days, just watching the towering pyramid of Machapuchre (Tamu name: कतासुँ क्लिको) play hide and seek with the clouds is mesmerising. There are rocks aplenty at Phulbari, and it is probably the flowers that grew along the flat terraces e that gave the place its flowery name. The boulders will hopefully be turned into a rock garden while landscaping. An nearby restaurant complex is making the best use of the stones in its design, using flat rocks as outdoor benches and tables. Sungava was designed by the husband-wife architect team of Deepak Sherchan and Jyoti Joshi of <a href="https://thedarkmermaidamarbshrestha.blogspot.com/2013/12/creative-builders-collaborative-cbc.html">Creative Builders Collaborative (CBC)</a>, which also built Heritage Plaza, Indreni Apartment and numerous other projects in Nepal. Sadbhavana retains CBC’s trademark Newari-style masonry and here it borrows from the orange brickwork of the old town of Pokhara, integrating it with modern design elements. A few of those heritage houses are still standing in Ganesh Tole and Ram Krishna Tole in Pokhara’s old quarter.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab.jpg" data-media-id="editor_3" data-image-id="2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab" data-rendition-name="original" width="1362" height="595" loading="lazy" alt="High living below the Himalaya NT"> </figure>  About 400m from the apartment past a bend on the river, and down below three tiers of terraces in the canyon is a suspension bridge. Below it, the Seti is still swollen with post-monsoon flow as it tumbles away in a hurry to head down south.&nbsp; Back at the apartment, it is quiet, far away from the hubbub of Lakeside a 15 minute drive away, and in the lap of greenery. There are 52 units at Sungava and it already has a close-knit prospective community of professionals, including doctors, publishers, engineers, and businesspeople from the renewable energy and IT sectors.&nbsp; Some residents say they opted for a second home in Pokhara to make it a ‘base camp’ to explore the Annapurnas with its many hiking trails made newly accessible with new roads. With the NRN citizenship law, overseas Nepalis can now also buy the flats. &nbsp; The floor plans include options for north and south-facing 3-bedroom apartments with verandas, and the facility has underground parking has EV charging, heated pool, sauna and gym. There are still some unsold apartments with panoramic views of the mountains and one can imagine oneself at the kitchen with its huge window, humming a ditty while preparing breakfast: “खाना पकाउँ हिमाल हेरेर...”

High living below the Himalaya

When the United Nations held its Summit of the Future at its headquarters in New York in September, many world leaders, including Nepal’s Prime Minister K P Oli, highlighted the effect of climate breakdown in increasing the frequency and intensity of natural disasters. What did not get as much attention was the long term impact of the climate crisis on food production. In fact, heat stress, weather extremes and the consequences on rain-fed agriculture is already being felt worldwide, undermining the chances of the <a href="https://unstats.un.org/sdgs/">UN’s Sustainable Development Goals (SDGs)</a> being met by 2030.&nbsp; The SDG’s 17 targets commit countries like Nepal to reduce poverty and inequality, end malnutrition, protect the natural environment, and ensure that citizens all enjoy health, justice and prosperity without leaving anyone behind.&nbsp; However, besides the impact of climate breakdown on agricultural production, in Nepal the area under cultivation is impacted by urban expansion, falling productivity and the need for expensive inputs like fertiliser and pesticides.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62.jpg" data-media-id="editor_1" data-image-id="20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62" data-rendition-name="original" width="999" height="1500" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Kathmandu's urban sprawl is eating into its fertile cultivable lands. Photo: TAYLOR MASON</figcaption> </figure>  Now, a new study led by Nepali researcher Prajal Pradhan at the University of Groningen in The Netherlands looks at how urban agriculture may offer a solution to falling food production and meeting SDG targets. The researchers evaluated 1,450 publications exploring the contributions of urban agriculture with both positive and negative effects, and published their findings in the journal Cells Report Sustainability. Urban agriculture can help achieve 17 SDGs, positively influencing 81 targets. However, it could also undermine 51 goals.&nbsp; Read also: <a href="https://nepalitimes.com/here-now/the-vanishing-land">The vanishing land</a>, Taylor Mason “Urban agriculture offers immense potential for sustainable development, but realising this potential depends crucially on adopting practices that minimise its adverse effects while maximising its benefits,” Pradhan explains. Urban agriculture can substantially enhance urban food security, provide employment to the urban poor, serve as ground water recharge in built-up areas, and preserve open spaces that can serve as safe havens during disasters like earthquakes. However, it also presents problems like the potential health risks from contamination and the need for expensive inputs. &nbsp; “Urban agriculture plays a definitive role in advancing the SDGs, but achieving this requires tailored, context-specific solutions that address the unique challenges of different regions,” says Yuanchao Hu of Wuhan University in China and who is a researcher at the Potsdam Institute for Climate Impact Research. “But it needs equitable access and rigorous management of environmental risks.”&nbsp; Rapid urbanisation is eating into Nepal’s most fertile agricultural land, which means farming in remaining open spaces inside cities can be a viable alternative, especially as food prices rise.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8.jpg" data-media-id="editor_3" data-image-id="20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>A vegetable patch in between new houses in Thimi. Photo: TAYLOR MASON</figcaption> </figure>  “The conversion of Nepal’s most fertile land into cities is a severe problem,” Pradhan told Nepali Times. “Crop cultivation, horticulture, agroforestry, beekeeping, livestock rearing, or aquaculture can all be farming activities within and around cities.”&nbsp; The study makes recommendations for sustainable practices that build on the positive aspects of urban agriculture while mitigating the downsides, thereby promoting more resilient cities in future. Research shows that urban agriculture has been helping many countries attain SDG targets by enhancing food security and biodiversity while helping education and preservation of open spaces.&nbsp; Indeed, many farmers from the hinterland who have settled in Kathmandu Valley or other urban areas of the country have been practicing urban agriculture, leasing neighbourhood patches or cultivating roof gardens both out of necessity because of inflation and falling income to grow their own food, and also as a fulfilling hobby. Saurav Dhakal, a sustainability advocate with Story Cycle and now research fellow at the Asian Institute of Technology in Thailand, says there are socio-economic and environmental benefits of urban agriculture. “It provides benefits to all urban dwellers, regardless of their income status,” says Dhakal, “families get fresh food, and there are many other benefits like water retention, heat regulation and biodiversity. These are all public goods, so special government incentives may be needed.” It is not unusual to see vegetable patches and even paddy fields within inner city Kathmandu where an older generation of farmers are using available fertile land and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/rooftop-gardens-kathmandu,1415">roof gardens to produce fresh, nutritious food </a>to reduce their dependence on food items that have to be bought after being trucked in from large distances.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77.jpg" data-media-id="editor_5" data-image-id="2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>An older generation of farmers are using any available fertile land to continue farming but it is getting more and more difficult. Photo: TAYLOR MASON </figcaption> </figure>  Nepal’s urban population grew rapidly from only 3.6% in 1991 to 25% today. There is large outmigration from the mountains to peri-urban areas of the Tarai, to Kathmandu Valley and Pokhara, with many young men then moving abroad for work. Kathmandu Valley’s population has swelled to nearly 3 million, and is growing at 6.5% a year. Dilip Shrestha, 71, used to work for Nepal Food Corporation, so he knew firsthand about inflation, shortages and vegetables with pesticide residue. So, when he designed his new house in Kathmandu, he built a spacious roof where he grows cucumber, ginger, garlic, coriander, onions, tomatoes, chili, beans, okra, pumpkin and lettuce. His family eats healthier, and he has reduced dependence on the market.&nbsp; The co-author of the Cell Reports Sustainability journal article, Daya Raj Subedi who is a PhD candidate at Beijing Forestry University, says urban agriculture also promotes inclusion and psycho-social wellbeing.&nbsp; He says, “A crucial finding of the study is the identification of opportunities and challenges associated with urban agriculture, it can promote sustainable transformation of society.” In Banepa, 55-year-old Bijaya Manandhar in her lifetime has watched the fertile farms of her neighbourhood that used to supply vegetables to Kathmandu, now completely built up with no open space left. The pandemic lockdown prompted her to turn to the family’s <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world">ancestral livelihood by growing food</a> not on terrace farms, but on the roof terrace. Manandhar is now a part of <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world%5C%5C">कौसी खेती र करेसाबारी क्रान्ती</a> (Rooftop Farming and Garden Revolution) which has an online membership of 52,000, and awards annual prizes to women who excel in urban agriculture.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d.jpg" data-media-id="editor_8" data-image-id="20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d" data-rendition-name="original" width="1600" height="736" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Rooftop farming is gaining popularity as a form of urban agriculture. </figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed.jpg" data-media-id="editor_9" data-image-id="20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed" data-rendition-name="original" width="4000" height="3000" loading="lazy" alt="urban agriculture in Kathmandu"> </figure>  Pradhan says the challenge now is to upscale such examples of successful urban agricultural practices so they support Neal’s efforts to meet SDG targets. He adds, “Crop cultivation around cities can be protected by land use plans and regulations. Promoting community-based agriculture, including rooftop gardens, requires community engagement and public-private partnerships across the food value chain.”&nbsp; Such support would accelerate the popularity of existing rooftop farming and community gardens in Kathmandu Valley, or kitchen garden initiatives in Pokhara, and building on traditional farming practices that are preserved and integrated into urban settings like in Bhaktapur and Banepa. In Lalitpur, the Women Entrepreneurship Facilitation Center promotes urban farming enhancing both sustainability and empowerment.&nbsp; Another co-author of the report, Yuanchao Hu from China says followup research of the team will aim to identify good practices in local urban agriculture practices. He adds, “There are examples of urban agriculture that optimise sustainability, ensuring that it remains a viable solution for cities globally while countries try to meet SDG targets.” Prajal Pradhan, Daya Raj Subedi, Kshitij Dahal, Yuanchao Hu, Prakriti Gurung, Sijal Pokharel, Sagar Kafle, Biplav Khatri, Sudeeksha Basyal, Monika Gurung, and Aruna Joshi. Urban Agriculture matters for sustainable development. Cell Reports Sustainability, 1:100217, 2024. [DOI: 10.1016/j.crsus.2024.100217] Prajal Pradhan (<a href="mailto:p.pradhan@rug.nl">p.pradhan@rug.nl</a>) This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_14" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>

Back to the land in the cities

The 700-year-old Lakshmi Narasingha temple in Bhaktapur houses a rare half-lion and half-human incarnation of Lord Vishnu carrying the Goddess Lakshmi. The temple was destroyed in the 1934 mega earthquake that killed 10,000 people and destroyed many monuments in Kathmandu Valley. It was rebuilt by a German project in the 1980s, but as a single-storey structure instead of its original two-tier pagoda design.&nbsp; With new findings from in-depth research, Bhaktapur municipality began re-restoring the temple in 2021, preserving its original architecture.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18.jpg" data-media-id="editor_0" data-image-id="20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “Our temples and heritage sites hold deep meaning. It is disheartening to witness how often they lose their original elements, whether by design or accident,” explains Kumar Chawal of the Consumer Committee of Bhaktapur. “There is a need to preserve our architecture and protect its historical value for future generations. Otherwise, we risk losing a vital part of our identity.” The Laksmi Narsingha restoration is similar to the Bhai Dega temple in Patan Darbar Square which also collapsed in 1934, but was rebuilt with a Moghul-style dome by the Rana government at the time. Only two months before the 2015 earthquake, heritage conservationists had started to rebuild Bhai Dega as the original three-tier based on early photographs. But priorities shifted when four other temples in the square were brought down by the 7.8M earthquake on 25 April 2015.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130.jpg" data-media-id="editor_1" data-image-id="20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  This showed how damage to monuments in Kathmandu Valley spanned from one earthquake to the next. Bhai Dega restoration remains half-complete to this day because money for its restoration ran out.&nbsp; Whereas Bhai Dega restoration was done by the Kathmandu Valley Preservation Trust with grants from western embassies and international foundations, in Bhaktapur it is the municipality itself that allocated the Rs30.7 million needed to restore the Lakshmi Narasingha temple. The expected date of completion is early 2025. The municipality and local communities are focusing on two main aspects: preserving the past and promoting localisation. The restoration team has designed a blueprint for the temple by using historical photographs and insights from older generations.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30.jpg" data-media-id="editor_2" data-image-id="20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30" data-rendition-name="original" width="1200" height="560" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “At first, the Lakshmi Narasingha temple had only one entrance, but during the demolition process, we uncovered the foundations of four doors. Now, we are restoring all of them. This is an example of how our ancient structures have changed over time, often without our knowledge,” says Chawal. “Constructing temples is not like building houses. They carry historical and spiritual values, which is why they hold a special place in our hearts,” he adds. By replicating ancient design elements and rebuilding the temple as accurately as possible to its original form, the team has stayed true to Bhaktapur’s soul. But the restoration also revived ancient techniques that were in danger of being forgotten, generating employment for woodcarvers, masons, and contractors. The community of Bhaktapur’s Gahiti neighbourhood near the famous Nyatapola Temple has also set aside specific days for locals to volunteer in the reconstruction work. This has encouraged young people to take pride in ownership of their heritage. Families have also supported the effort by donating funds for bells, the temple pinnacle, and other structural features to the temple.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6.jpg" data-media-id="editor_3" data-image-id="20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “I feel at peace knowing I have contributed my sweat to restoring this temple,” said one volunteer. “It is our duty to preserve our temples and heritage. The Nyatapola area will look magical once this temple is completed.” Community mobilisation is a long-standing tradition in Bhaktapur. In the past, locals have actively participated in the restoration of other temples in the city, such as Bhairav and Nyatapola fostering a strong sense of ownership. This collective engagement has not only been crucial in preserving the city's historical monuments but also in strengthening the bond between local communities and their heritage, says officials at the municipality. While securing funding is essential, and the municipality showed it values heritage conservation, the Lakshmi Narasingha restoration is proof that active involvement and sense of responsibility of the local community is as important, if not more. Local involvement also means that the monuments will be cared for into the future, When locals take ownership of these efforts, the restored monuments are not only protected in the present but are also cared for in the future.