Love for dogs is somewhat inherited. Humans have probably evolved to develop a special kind of gene that makes them predisposed to love dogs. And as canines evolved, dogs probably have bonding with humans in their DNA too. That could be why I have always felt an instant connection with a dog, I am sure I was born with it. I also feel that instant connection with fellow dog lovers than with anyone else. I was born in a family where dogs were tremendously loved and cared for. My mother’s two biggest gifts to me are a) a kind heart, and b) love for all animals, especially dogs. Read Also: <a href="https://nepalitimes.com/here-now/kathmandu-s-street-smart-dogs">Kathmandu’s street-smart dogs</a>, Sonia Awale I grew up hearing her story of the time when I was 6 and was bitten near my eye by my uncle’s dog. I needed to get stitches. Even today, she says she fails to understand why that never stopped me from loving dogs, and why I was never scared of them even after that traumatic event in my childhood. As a child, my favourite memory is going out for walks with my mother when she fed biscuits to stray pups along the way. We knew the dogs all along the alleys outside the house. It is a practice I have inherited. As soon as we walked out of the house, we would be trailed by neighbourhood dogs wagging their tails wildly in anticipation. They used to follow up right to the little corner store. And what grateful creatures God of Dogs created, the love and loyalty they show in exchange of one small treat or a little rub on their head.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231112031136_7c8cc7593d5acf3f399ddd31b1cecb2f69b6b13093459444fcc3efe57c415c93.jpg" data-media-id="editor_1" data-image-id="20231112031136_7c8cc7593d5acf3f399ddd31b1cecb2f69b6b13093459444fcc3efe57c415c93" data-rendition-name="original" width="2048" height="1366" loading="lazy" alt="must love dogs"><figcaption>PHOTO: SUMAN NEPALI</figcaption></figure>  So, when I say I love dogs, I am a bit biased. I have more affection for the strays on the road, the breed now recognised as a distinct species and which Nepalis fondly call bhusyaha kukur. My love for stray mutts and pups has led me to rescue a few, my four-legged girls. Many of these furry friends have since then found their way to my heart. Some are abandoned, others are community canines whom I feed snacks. Read Also: <a href="https://nepalitimes.com/multimedia/kukur-biralo-tihar">Kukur Biralo Tihar</a>, Monika Deupala Each of them has a unique personality, each has a unique story to tell. Beyond their limitations of not having a home, they all enjoy and value their life in the streets and between struggling to protect their territory to finding food, they are also surrounded by humans who love them, feed them, give them a belly rub. And it is heart-warming to see them walking around proudly with marigold garlands, foreheads red with vermilion on <a href="https://nepalitimes.com/multimedia/kukur-biralo-tihar">Kukur Tihar</a> (which this year falls on 12 November). This festival, which is unique to Nepal, is an equaliser because it forces us to embrace purebred pets at home equally with the strays outside. The sad part, of course, is that the dogs we worship in the morning are scared out of their wits in the evening when the firecrackers start going off. Many strays and pets are so spooked they run away and are lost during Tihar. We have to be more mindful of this. Read also: <a href="https://www.nepalitimes.com/latest/microchipping-nepals-dogs/">Microchipping Nepal’s dogs</a>, Aria Shree Parasai From living in the moment to loving selflessly to never complaining to never stopping to being happy, we humans have a lot to learn from dogs. My hope is that we all continue this celebration all year round, that we find ways to rehome stray dogs, that we stop buying and start rescuing. For someone who has rescued dogs myself, I can tell you there is nothing as liberating as this act of humanity. And the rewards that you receive in return is immeasurable. We can all take action by not buying another dog for our home, and who knows, the next rescue you make is the one who will rescue you.

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Must love dogs

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a259c7e80680e0b5587jpeg.jpg" alt="" width="1000" height="602"/><figcaption>All photos: ABHYU GHIMIRE</figcaption></figure>Scientists have found <a href="https://academic.oup.com/mbe/article/34/3/775/2967141?login=true">genetic evidence</a> that dogs were first domesticated by early humans on the Tibetan Plateau, and interbreeding with the Himalayan grey wolf gave them the ability to adapt to high altitude living. So, it is no wonder that dogs feel so much at home in the mountains.When a team did the first traverse of <a href="http://archive.nepalitimes.com/news.php?id=19057#.YhnstC2B2CR">the Great Himalayan Trail</a> in 2017, a mastiff they named Setuk joined the group for 300km from Khumbu to Helambu, even climbing over the 5,700m high Tashi Labtsa pass. Setuk once <a href="http://archive.nepalitimes.com/news.php?id=19216#.Yhnsti2B2CR">accompanied mountaineers</a> up the Khumbu Icefall to Camp 2.Another <a href="http://archive.nepalitimes.com/news.php?id=17935#.Yhnsui2B2CR">Tibetan mastiff named Tashi</a> once walked back from a village in Ramechhap to Kathmandu after his Japanese owner, at the end of his job in Nepal, took him back to the place where he adopted the puppy.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a279c7e80680e0b5588jpeg.jpg" alt="" width="1000" height="563">Dogs often trail trekkers in Nepal, they bond with them acting as guides and camp watchdogs in return for food and adventure. Some of these dogs stay on in the mountains and are feral, hunting in packs like their evolutionary ancestors. Wild dogs have been known to attack yaks in high pastures in Khumbu.A community dog from Dingboche once accompanied us on the climb up to Nangarshang peak. He was a perfect gentleman (a gentledog if you will), and carried himself with much dignity. Not obtrusive or greedy, he was just there all the time, walking ahead of us on the trail.<a href="https://www.nepalitimes.com/banner/a-dog-with-altitude/">Tibetan mastiffs</a> look intimidating at first glance, but they seldom quarrel among themselves when resources are plentiful. They however can be loyal and fiercely protective of the yaks, sheep or humans that they watch over, and do not hesitate to attack “outsiders”.https://www.youtube.com/watch?v=IUNCMaIlNB4There is a difference between domestic dogs confined to households, and community canines that watch over the whole village they belong to. As an example, this particular tourist dog was attacked by local dogs at Namche Bazaar. As my patient wouldn't let me suture the lacerations, wounds were cleaned and repaired using staples.Lately, however, I have noticed that with the drop in tourism following the pandemic in the past two years, previously <a href="https://www.nepalitimes.com/review/a-tibetan-mastiff-pup-who-dares-to-dream/">friendly community mastiffs</a> in the Khumbu have become more aggressive.As a doctor here, I have had to treat an increasing number of dog bite cases. Not only have the incidents of dog-attack increased, but the injuries are also more serious. No longer are they casual fang marks and scratches, but deep wounds as if the predator had the intention of killing and eating its prey.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a2a9c7e80680e0b5589jpeg.jpg" alt="" width="445" height="462">Some people have stopped walking alone along village trails, and children are warned by parents not to go out alone. I had to treat a child who was attacked by a group of dogs in Pangboche and had deep life-threatening injuries on her back. She was lucky, as neighbours chased away the dog pack in the knick of time.There used to be a puppy in Dingboche that used to play with a yak calf which was about his size. He was being raised by the community to be a watchdog to protect the yak herd from wolves and snow leopards.Recently, the pup was killed and eaten — not by a <a href="https://www.nepalitimes.com/here-now/nepal-leads-in-snow-leopard-study/">snow leopard</a>, but by other feral dogs. There have been other instances of dog-eat-dog, a phenomenon locals here had never heard of before.The people of the Khumbu rely heavily on trekkers for income, and the collapse of tourism has had a domino effect on families here. The fall in income has also meant that the dogs now do not get enough to eat<a href="https://www.nepalitimes.com/banner/bhaktapurs-dog-catchers/">Community dogs</a> that used to be well-fed, and sleep all day in the sun, are now showing more aggressiveness. Triggered by hunger, they have fallen back on their primitive wolf instincts.They hunt in packs, and there are frequent territorial gang wars between rival groups. Dog fights have become more common, and dogs do not hesitate to eat their own kind if one is killed in a fight.Khumbu’s langur monkeys, which were wary only of snow leopards and <a href="https://www.nepalitimes.com/banner/crying-wolf/">wolves</a>, are now being attacked and eaten by dogs. In Dingboche, one unfortunate monkey met such a fate and was left half-eaten by dogs.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a2c9c7e80680e0b558ajpeg.jpg" alt="" width="329" height="462">It is an indication of how much locals are worried about dog attacks that the deeply religious people here, who usually do not harm animals, have started requesting the authorities to poison rampant dogs. This is against what doctors believe in and practice, and hence was denied.Luckily, with the Covid-19 pandemic tapering off, there is a trickle of trekkers. With more food available, the number of <a href="https://www.nepalitimes.com/banner/dog-bites-man-is-still-news-in-nepal/">dog bite cases</a> at the health posts in the Khumbu is going down noticeably.This behavioral change in Khumbu's dogs should be studied in more detail but what we witnessed first hand was thousands of years of domestication fading away in a matter of months, as a result of food deprivation, an interesting side <a href="https://www.nepalitimes.com/banner/singha-darbar-dogs-go-hungry-in-lockdown/">effect of the whole Covid-19 pandemic</a>.Abhyu Ghimire is a Medical Officer at The Mountain Medical Institute at Namche Bazar and Dingboche in Solu Khumbu.

Khumbu dogs go wild after tourism decline

Kathmandu’s <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/woof-of-fresh-air-for-street-dogs-in-kathmandu,4132" target="_blank">community canines</a> already seem to sense that their special day is coming soon on 14 November, <a href="https://www.nepalitimes.com/latest/mexico-adopts-kukur-tihar/" target="_blank">Kukur Tihar</a>. That is when they are ritually garlanded &nbsp;and offered treats as the messengers of Yamaraj, the god of death. But for Rashmi Tuladhar, every day is dog day. Ever since she was a child, she took care of <a href="https://www.nepalitimes.com/latest/kukur-biralo-tihar/" target="_blank">the dogs and cats</a> in her tole – these were not abandoned strays but community pets. No one owns them, but everyone does. <div class="embed-block"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181116/636be0f89c7e80680e083e21jpeg.jpg" alt="" width="1502" height="1000">Rashmi at home with one of her dozen resident dogs. All photos: SHRISTI SHERCHAN</div> Over the years, Rashmi’s bond with dogs in her neighbourhood grew, and today at age 46 she has been taking care of several generations of dogs, while keeping some of the more needy ones in her own house in Asan. The pandemic has been <a href="https://www.nepalitimes.com/banner/singha-darbar-dogs-go-hungry-in-lockdown/" target="_blank">tough on Kathmandu’s community dogs</a> &nbsp;there is less food to rummage through and many butcher and food shops are closed. And, ironically, while dogs will be worshipped on Saturday morning by being fed and feted, <a href="https://www.nepalitimes.com/editorial/in-an-animal-farm/" target="_blank">Tihar fire crackers will scare the wits out of them in the evening</a>. Rashmi Didi, as she is affectionately known in her neighbourhood, gets up before dawn every morning. Not to visit the temples as some of her neighbours, but to prepare the morning meal for the 100 <a href="https://www.nepalitimes.com/banner/bhaktapurs-dog-catchers/" target="_blank">community canines</a> that she cares for: from Asan to Ratna Park, and as far as Ghanta Ghar. Rashmi keeps another dozen or so seniors and injured dogs in her cramped ancestral home. “Many people just see them as filthy animals who are always breeding endlessly, so they either do not take care of them or mistreat them,” says Rashmi while on her daily rounds to check up on the dogs in her neighbourhood. <div class="embed-block"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181116/636be0fc9c7e80680e083e22jpeg.jpg" alt="" width="640" height="956">Rashmi Tuladhar's simple ancestral home in Asan at the heart of old Kathmandu.</div> The dogs recognise her from afar, and run towards Rashmi, tails wagging furiously. For Rashmi, there is less of a religious motivation to appease the gods in this work. She is driven more by <a href="http://archive.nepalitimes.com/news.php?id=19767#.X6yhfS17GCQ" target="_blank">compassion for fellow sentient beings</a>. She gets help from animal welfare organisations Animal Nepal and Catmandu Lovers to sterilise and vaccinate the dogs and cats, and also treat those who are sick or injured. “Their help has made me realise that there are good people in this world too,” she says. <div class="embed-block"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181116/636be0fe9c7e80680e083e23jpeg.jpg" alt="" width="1506" height="1000">Rashmi Tuladhar feeding community dogs in her neighbourhood in Asan during her morning feeding round.</div> Rashmi herself is handicapped, her right hand is partly paralysed. From a young age, she faced discrimination and bullying for being a ‘cripple’. She says she still cannot understand how people can be so cruel, adding that her special bond with dogs probably comes from identifying with the way the <a href="https://www.nepalitimes.com/banner/dog-bites-man-is-still-news-in-nepal/" target="_blank">animals are also mistreated by humankind</a>. “For me, humans are the ones more difficult to deal with in this world,” she explains matter-of-factly. “I have seen people abandoning their own pets on the streets, some leave them to suffer in cages. I cannot understand why they bring home a dog or a cat only to leave them on the streets.” While on her morning rounds, Rashmi's neighbours stop by to chat with her. Strangers sometimes ask her why she is feeding the dogs, and they cannot understand why she does it. “These animals cannot express themselves in a way we humans understand, they cannot ask for help. People are mean to them, they throw hot water or rocks, beat them with sticks,” she says. “Some people even say hurtful things even while I am feeding them. But at least these <a href="https://www.nepalitimes.com/banner/a-dog-with-altitude/" target="_blank">dogs</a> know not all humans are nasty in this life that we are living together.” Although she may sound despondent, Rashmi see hope in young people in her neighbourhood who stop by to pet the dogs she is feeding. Many say they do not have dogs are home, but would like to have one. Rashmi recognises every dog on the streets by their names, and introduces them to the children. <div class="embed-block"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109181116/636be1019c7e80680e083e24jpeg.jpg" alt="" width="1500" height="1002">One of Rashmi’s resident senior dog looks out of the window awaiting her return from her feeding round.</div> After completing her daily round, Rashmi heads home to feed and care for her own resident <a href="https://www.nepalitimes.com/here-now/saving-nepals-last-wild-dogs/" target="_blank">dogs</a>, who yelp happily to see her return. She says: “This is what makes me happy. My disability does not affect me so why should it affect others? I just hope people were kinder.”

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Every day is Dog Day

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

Visit Nepal in the monsoon

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

Not poor, but not rich

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

Nepal’s bubble economy

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