Saraswati Puja on 14 February also marks the first day of spring on Nepal’s lunar calendar. Schools hold special functions, students sing hymns, and children go to temples of the goddess of knowledge to write their first letters in chalk on the walls. The belief that goddess Saraswati resides in books, musical instruments, even laptops and other devices for intellectual pursuit prevails to this day.&nbsp; The most exquisitely carved figure of Saraswati in all of Nepal was in a temple in Pharping, 20km south of Kathmandu. On 11 November 1984 devotees were shocked to see that their goddess had been beheaded. This was in the 1980s when idol theft in Kathmandu Valley was rampant. International traffickers in collusion with Nepal’s high and mighty were smuggling out sacred objects to sell to collectors and museums abroad.&nbsp; Read also: <a href="https://nepalitimes.com/news/nepal-s-diaspora-helps-return-stolen-gods">Nepal’s diaspora helps return stolen gods</a>, Alisha Sijapati Since the 1.2m high Saraswati carved out of black granite was so large and heavy, the thieves hacked off just the head and took it away under cover of night. Black granite is not found locally, and is similar to the stone used in the sleeping Vishnu at Budhanilkantha and the Bhagwati at Kavrepalanchok — all believed to date back to the Lichhavi period 1,000 years ago. German historian Jürgen Schick was living in Kathmandu at the time, and was deeply troubled by the plunder of Nepal’s religious treasures, and the emotional toll it was taking on local communities. He started his own photographic documentation of missing sacred objects and published the book, Die Götter verlassen das Land, in 1989. It was updated and translated in 1997 into English as The Gods are Leaving the Country: Art Theft from Nepal.&nbsp; Read also: <a href="https://nepalitimes.com/banner/faith-stolen-lost-in-nepal-found-in-america">Faith Stolen: Lost in Nepal, found in America</a>, Lost Arts of Nepal  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240213120244_ee3c3b4bdd2c9db368171fbfc0a6ef9101327cccb717fb0e23eff0feca4aa696.jpg" data-media-id="editor_2" data-image-id="20240213120244_ee3c3b4bdd2c9db368171fbfc0a6ef9101327cccb717fb0e23eff0feca4aa696" data-rendition-name="original" width="817" height="498" loading="lazy" alt="The godhead of Patan"> <figcaption>THE REAL FACE: German historian Jürgen Schick's photographs of the Pharping Saraswati (above) taken before and after it was decapitated by thieves in 1984. The head was sold to an art collector in the United States, who returned it to Nepal in 1999. Since then it has been stored at the National Museum, and for the past two years has been on display with other repatriated stolen deities (below).</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240213120244_f17dba3a2da5cd75a87ab75aa9c0ba63f0cbeca1363f1a65291e557fce9bf1c7.jpg" data-media-id="editor_3" data-image-id="20240213120244_f17dba3a2da5cd75a87ab75aa9c0ba63f0cbeca1363f1a65291e557fce9bf1c7" data-rendition-name="original" width="1000" height="1500" loading="lazy" alt="The godhead of Patan"> <figcaption>Photo: GOPEN RAI</figcaption> </figure>  On 8 May 1984, Jürgen had photographed the intact Pharping Saraswati. He went again on 10 December 1984 and took a picture of the decapitated goddess which also had its right foot missing.&nbsp; Residents of the area, Mohan Narayan Balami and Sapta Balami, told Schick that when they arrived for morning prayers, the Saraswati was tilted, with her head missing. There was a huge nationwide outcry as word of the theft spread. &nbsp; "The fate of the Saraswati statue is special because it clearly shows that the art robbers do not shy away from even decapitating a beautiful statue of a deity that has been worshipped for centuries," Schick said. "There could be no clearer evidence of their brutality, the same brutality that they also use against the human protectors of the sacred images, as was clearly shown during the theft of the Halchok Akash Bhairav image in 2021 when they threatened the temple priest with a knife to his throat."&nbsp; Eventually, Pharping's devotees replaced the head with a replica that was so ugly that many found it an insult to the deity, and a reminder of the crime. It was replaced with a more accurate carved head, which is there to this day but still does not match the artistry and beauty of the original. Read also: <a href="https://nepalitimes.com/review/remembering-nepals-lost-and-the-found">Remembering Nepal's lost and the found</a>, Ashish Dhakal In 1999, Riddhi Baba Pradhan, then Director-General of the Department of Archaeology, received a letter from the Nepal Embassy in Washington DC that a US-based art curator Pratapaditya Pal had located the Sarswati head and four other sacred objects from Nepal with a private collector. &nbsp; Pratapaditya Pal checked Lain Singh Bangdel’s seminal book, The Lost Art of Nepal, and brought this to the notice of the collector, who promptly agreed to return the objects. The Saraswati head was then returned to Nepal in 1999 along with three other sacred objects and have been in the National Museum at Chhauni ever since.&nbsp; “When the boxes arrived from the airport customs, it was a very emotional moment for all of us," recalls Pradhan, who is now chair of the Nepal Heritage Recovery Campaign.&nbsp; Read also: <a href="https://nepalitimes.com/news/itumbahas-living-museum">Itumbaha's living museum</a>, Sahina Shrestha  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240213120244_9f71a0815f3a655c8f3c0b590df1044297a33d4c60f39e58ff0fa5da4b33ab69.jpg" data-media-id="editor_6" data-image-id="20240213120244_9f71a0815f3a655c8f3c0b590df1044297a33d4c60f39e58ff0fa5da4b33ab69" data-rendition-name="original" width="1388" height="2080" loading="lazy" alt="The godhead of Patan"> <figcaption>TWO HEADS: The Saraswati figure (above) at the shrine in Pharping (below) where thieves hacked off the head in 1984 and took it away to be sold to international art traffickers. The head was replaced with an ugly replica, and later by a more accurate version which has been worshipped now for 40 years. The real head, which was returned from a collector in the United States in 1999, is now in the National Museum in Chhauni. Photos: SAURAV THAPA SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240213120244_5a11c3d4b7dea4538698c29ba487ac6bf298269ce55008b55250daaa1673e256.jpg" data-media-id="editor_7" data-image-id="20240213120244_5a11c3d4b7dea4538698c29ba487ac6bf298269ce55008b55250daaa1673e256" data-rendition-name="original" width="1499" height="1000" loading="lazy" alt="The godhead of Patan"> </figure>  She adds, "It was the first indication that our gods would be returning to their rightful places.”&nbsp; Bal Ram Balami in Pharping still remembers the first time he heard on tv news that the Saraswati head was coming back: “I had this deep sense of happiness, I was overwhelmed with joy and relief.” &nbsp;&nbsp; Many in Pharping wanted the retrieved head to be reinstated on the Saraswati and were looking forward to its true homecoming. But 25 years later, the head is still in the museum. It was in storage till two years ago when it went on public display with other repatriated stolen objects. The National Museum and the Pharping community have been in constant communication, but no tangible progress has been made.&nbsp; Pharping’s Ward Chair Shailesh Man Manandhar says the locals want the Saraswati returned, but security concerns persist.&nbsp; Read also: <a href="https://nepalitimes.com/here-now/the-homecoming-of-nepal-s-gods">The homecoming of Nepal's gods</a>, Alisha Sijapati National Museum director Jayaram Shrestha agrees that worries about it being stolen again persist, and the community also does not want to take responsibility for its safekeeping. “For now, it is important for the head to remain where it is until a final decision is reached,” says Manandhar, who has plans to establish a museum in Pharping itself with other religious objects.&nbsp; By now, the local community has become attached to the replica head since it is being worshipped and already embodies the essence of Saraswati’s wisdom and knowledge.&nbsp; He says, “It may be wise to let the original head remain where it is under protection of the National Museum until we are ready to take it back.” Read also: <a href="https://nepalitimes.com/here-now/nepal-s-deities-in-transit">Nepal’s deities in transit</a>, Anita Bhetwal

Alisha Sijapati

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The godhead of Pharping

Two 1,000-year-old stone deities return to Nepal, but hundreds of other stolen objects are still out there<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9ad9c7e80680e02f2c5jpeg.jpg" alt="" width="800" height="980"/><figcaption>HOMECOMING: The 12th century Uma Maheswar stele from Tangal Hiti, Patan, stolen in early 1980s.</figcaption></figure>In Yatkha Tole, Krishna Bahadur Tuladhar, 62 shows Nepali Times a brass crown belonging to the Standing Buddha that was stolen from a shrine in his neighbourhood in 1986. His family has worshipped the crown every day ever since the Buddha went missing.On Wednesday, the 10th century Standing Buddha of Yatkha Tole was one of two holy stone sculptures returned to Nepal by The Metropolitan Museum of Art in New York. The other was a 12th century stele of Uma Maheswar stolen from Tangal Hiti in Patan in 1980.“This looks like the same statue missing from our temple,” says Tuladhar looking at the photograph of the Standing Buddha being returned. “If it is the same, the crown should fit it,” he adds.Since the sculpture went missing 30 years ago, the community has installed another statue in its place. But the open space the bahi once occupied has shrunk because of the private houses that tower all around.Shyam Dangol remembers playing in the bahi and praying to the deity when he was a child. “It is the same one that went missing from here,” he says looking at the photograph. “When the idol was stolen, the authorities came with big dogs and even the locals were accused of assisting in the crime. We never found out who did it.”https://www.youtube.com/watch?v=gtN1KiH9Va0The epidemic of idol thefts started soon after the end of the Rana era in the 1950s, as Nepal opened up to the world. Over the next few decades, thousands of deities worshipped in temples and monasteries in Kathmandu Valley were stolen to be sold to collectors and museums in the West. The process accelerated during the 1980s.When Tej Ratna Tamrakar heard about the stone Buddha being returned to Nepal, he had hoped it was another statue from his clan’s Arya Naam Sangiti guthi that was stolen 30 years ago. After the Buddha was stolen from the Agan Chhen (sacred house housing the clan’s god) in Yatkha Bahal the guthi installed a much smaller stone Buddha.“When I heard the news, I thought that our God was coming home,” 70-year-old Tamrakar told us this week, “but this one is not ours. Our Buddha was sitting down in bhusparsa position, this is standing.”The Uma Maheswar was donated to The Metropolitan Museum of Art in 1983 by a collector, and the Standing Buddha was donated in 2015. During the acquisition process of the Standing Buddha, The Met found out from Lain Singh Bangdel’s book Stolen Images of Nepal, published in 1989, that the two figures had been smuggled out of Nepal, and so the process for its return began.In 2017, the Museum contacted the Nepal government and offered to return the sculptures, after which the Consulate of Nepal in New York contacted the Museum to coordinate and facilitate the process. The nose of the Standing Buddha currently looks different from the picture in Stolen Images of Nepal, (where it looks slightly damaged). John Guy, curator of the Arts of South &amp; South East Asia at The Met believes the nose was repaired when sold to the collector about 30 years ago.“When the statues were carved and consecrated, no one would have thought that centuries later someone would try to steal them. That is why they were not anchored securely and were easy to lift off, and that is also why the government did not have an inventory,” says heritage activist Kanak Mani Dixit.Fortunately, the works of Lain Singh Bangdel, Jürgen Schick and later Ramesh Dhungel have sought to fill the gap. Bangdel and Schick separately photographed and documented hundreds of statues in their original place and publishedStolen Images of Nepal and The Gods are Leaving the Country respectively. Dhungel studied the Nepali artefacts in The Met and documented them in The Lost Heritage.“Ramesh Dhungel studied Nepali art in the same museum from where the two idols have been returned, and his book along with the others' shows how many more Nepali idols are still out there,” said Bhesh Narayan Dahal, Director General of Department of Archaeology.Since April 1996, when 19 stolen artefacts were returned from Britain, only a few out of the thousands have been returned to Nepal. And even from those few, many have ended up in museums, rather than the communities where they belong. The two images of the Standing Buddha and Uma Maheswar have also been handed over to the National Museum of Nepal at Chhauni.“The idols have spiritual, psychological and emotional connotation for the people so they need to be returned to the community. The government should help safeguard it,” says Ramesh Dhungel. “When they end up in museums they merely become items of art, which is unfair to the people who believe that the idols have life.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9af9c7e80680e02f2c6jpeg.jpg" alt="" width="800" height="1200"><figcaption> </figcaption></figure>The communities also want the Gods to be returned to them and not housed in museums. Clutching an old photograph of an idol of Balabhadra stolen from their community 40 years ago, Tirtha Raj Bajracharya, Bishwa Bhakta Malla and Shree Ram Tamrakar of Tangal Hiti want their God back too.“They stole it in the past but now we as a community will look after it now,” says Bajracharya.In Yatkha Tole, Tuladhar told Nepali Times, “It is our God. We should be able to pray to it daily and it should be returned to us.”The Department of Archaeology is positive, “As per the Ancient Monument Preservation Act 1956, the communities can send in an application through the district administration and if we are convinced about the monument’s safety, it will be returned,” Dahal said.As for Tej Ratna Tamrakar he still hopes that his God will also be returned one day. He says: “I am hopeful but not too confident it will happen in my lifetime.”<h2>Homecoming</h2>3 April, 199619 artefacts returned from Britain. Currently in the National Museum, Chhauni.10 September, 19994 artefacts returned from US. Currently in the National Museum, Chhauni.24 October 2003The Kanakmuni Dipanker Buddha stolen from Nagbahal, Lalitpur was brought to the Department of Archaeology. The idol was handed over to the Guthi in Nagbahal.25 June, 2007China returned 28 artefacts stolen from Dolpa. On 15 August, 2007 the idols were returned to Dolpa.16 June, 2017Four idols from the private collection of Leroy Allen Ehrenreich  returned to Nepal. Currently in the National Museum, Chhauni.

Sahina Shrestha

Bringing our Gods home

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

Visit Nepal in the monsoon

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

Not poor, but not rich

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

Nepal’s bubble economy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan

stolen-idols

The godhead of Pharping

Bringing our Gods home

Visit Nepal in the monsoon

Not poor, but not rich

Nepal’s bubble economy

Walking, working, worshipping in Patan