<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c669c7e80680e0bd48djpeg.jpg" alt="" width="1765" height="903"/><figcaption>A caravan of yaks carrying salt heads south. SOURCE: JAG BAHADUR BUDHA</figcaption></figure>While it is unclear when and how salt was first introduced to Nepal’s culture and cuisine, what is clear is that Tibetan salt was once the foundation of our Himalayan economy and livelihood.From the Walung, Lhomi, Bhote, Sherpa, Byasi Souka, Mugali, Nyinba, Dolpo, and Nisyangba, the ethnicities on Nepal’s Himalayan rimland from Taplejung in the east to Humla and Darchula in the far west have historically shared socio-cultural and religious ties with Tibet.The relationship between the southern flanks of the Himalaya with the Tibetan plateau extended to trade at a time when agriculture and livestock were the main means of livelihood on both sides of the mountains. Before 1850, Nepal imported rock salt, wool, powdered gold, horses and yaks from Tibet, and exported grain, spices, knives, fabric, handicrafts and more.In 1774, Prithivi Narayan Shah’s Gorkha expansion had led to the annexation of regions controlled by Darjeeling as well as the town of Bijaypur in the Limbuwan region which was then ruled by Sikkim.This angered the Tibetans, effectively souring relations and bringing trade to a standstill. This caused a shortage of salt in Nepal, which traders would try to remedy by smuggling it through high Himalayan passes.Nepal and Tibet fought wars in subsequent years over minting coins to trade disputes. But this did not affect the secret crossborder trade since the Nepal-Tibet border was so rugged and remote it could not be fully policed.Nepal and Tibet finally signed a treaty in 1856 to officially resume cross-border trade, allowing free travel and trade to resume.Historian Baburam Acharya in his journal China, Tibet and Nepal notes that Nepali merchants bartered rock salt bought down from Tibet for grain from Nepal’s south. In the absence of common currency, bartering these goods was the main form of trade. This barter system remained in place until 1959, writes Wim van Spengen in his book Tibetan Border Worlds: A Geohistorical Analysis of Trade and Traders.The people of Tibet’s Changthang Plateau were largely nomadic, while Nepal’s ethnicities were more settled into farming and pastoralism in the upper reaches of the Tamor, Arun, Dudhkosi in the east, to Budi Gandaki, Marsyangdi, Kali Gandaki in central Nepal, and Bheri, Karnali and Mahakali in the west.Low agricultural yield in these semi-arid trans-Himalayan valleys meant that the communities traditionally depended on cross-border trade with Tibet.Because merchants would have to be away to engage in trade for long periods of time, they divided roles, particularly among brothers, with some of the family members tasked with transporting and trading salt, and others staying behind to manage their homesteads.For this reason, polyandry was convenient and accepted in Himalayan cultures. One woman married to all brothers meant the family remained together with centralised resources, and the women did not become widows if one brother died during the perilous Himalayan traverses.Austrian anthropologist Christoph von Fürer-Haimendorf spent much of his life in Nepal, studying Nepal’s cross-border trade with Tibet, publishing his book Himalayan Traders in 1988. He explores how the market for Tibetan salt extended from Nepal’s high mountains to the foothills and the southern plains.Read also: <a href="https://www.nepalitimes.com/banner/was-tenzing-a-tibetan-nepali-or-indian-it-does-not-matter/">Was Tenzing a Tibetan, Nepali, or Indian? It does not matter.</a>, Lhakpa Norbu Sherpa<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c699c7e80680e0bd48ejpeg.jpg" alt="" width="960" height="640"><figcaption> </figcaption></figure>The Salt Economy From 1850 to 1959, the indigenous peoples living in the highlands from Taplejung in the eastern Nepal to Humla in the northwest and Mahakali in the far west engaged in the ‘salt economy’ — trading Tibetan salt with the Nepalis across the central hills and the plains.The Walung ethnic group settled on the banks of the Tamor in Taplejung’s Olangchungola, Yangma and Ghunsa regions. Their job was to transport the salt from Tibet down to Maiwakhola, and exchange the goods with the Limbu indigenous groups in the central mountains. The Limbus would then take the salt down to Dharan to barter for grain and cloth.Meanwhile, Nepal’s Bhote and Sherpa put down roots where the Arun river originates in   Sankhuwasabha’s Thudam, Ritak and Topkegola regions. A little further downstream lived farmers from the Lhomi community. The Bhotes and Sherpas would barter salt for the potatoes and grains grown by the Lhomis. Similarly, the Sherpa of the Khumbu region bought and transported rock salt from Tingri in Tibet across the Nangpa La and traded it with the Rai people from down valley of the Dudh Kosi.In western Nepal, <a href="https://nepalitimes.atavist.com/high-and-dry-upper-mustang" target="_blank" rel="noopener noreferrer">Mustang’s</a> Lowa tribe settled along the Kali Gandaki and carried Tibetan salt to  Thak Khola, where they bartered it with the Thakalis who took it down to Pokhara and Kathmandu.Meanwhile, the Nisyangbas of Upper Manang used to trek even lower to trade salt in Pokhara and Baglung, eventually expanding to Calcutta and the British East India Company, and later to even Burma via Darjeeling, Kalimpong and Gangtok.In fact, so impressed was King Mahendra with the Nisyangba traders that he issued special passports to Nisyangba  merchants in 1960, allowing them to expand their transnational trading bases as far as Malaysia, Thailand and Singapore.Read also: <a href="https://www.nepalitimes.com/latest/north-of-the-border/">North of the border</a>, Nabaraj MahataraAfter Prithivi Narayan Shah’s conquest of Kathmandu Valley in the 1770s, Sankhu became also a major trading post, and would remain one until 1967. Tibetan salt from Sankhu Customs was  traded in the markets of Kathmandu from where it would reach the Tarai.The Mughals and Karins settled near the Karnali River and indigenous to Upper Mugu used to travel to Tibet twice a year to import salt and wool. The salt was then exchanged for grain in the lower Mugu and Jumla to the Matwali Chhetris, who would go on to sell the goods in Jajarkot and the Tarai. Communities in northern Humla also traded salt for grain with the Thakuri  in Bajhang and Bajura to the south.The Dolpopa of the Upper Dolpo transported salt and wool on sheep, mountain goats and yaks to exchange for grain in the Tarali Magar village  as well as to the Hurikot and Kaigaun villages in the Tichhurong region. Some of the last of these yak caravans were depicted in Éric Valli's Oscar-nominated film, Himalaya.In the far-west, the Khas Thakuris of the Byasi Sauka, Hikila and Sunsera communities brought salt from Taklakot in Tibet, trading it across Baitadi, Doti and Bajura.The salt economy strengthened ties not only between the people of Tibet and the Nepal Himalaya, but also fostered personal relationships between individual Nepalis and Tibetans, so much so that the exchange of कोसेली presents between Nepalis and Tibetans was as commonplace as the buying and selling of salt.The salt trade also cemented lasting bonds between communities of the high Himalaya and the mid-mountains. The Nyinba tribe of Upper Humla were closely linked to the Khas of Limal, while the people of Upper Mugu had ties with the Khas of Lower Mugu.  The Tarali Magars and Matwali Khas people of Dolpo, as well as the Lowa and Thakali of Upper Mustang had strong family bonds. The Sherpa of Khumbu similarly built relationships with the Sunwar and Rai communities to the south, as did Taplejung’s Walung with the Limbu community.Read also: <a href="https://www.nepalitimes.com/banner/there-are-muslims-in-tibet-too/">There are Muslims in Tibet, too</a>, Duksangh Sherpa<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c6c9c7e80680e0bd48fjpeg.jpg" alt="" width="1500" height="1069"><figcaption> </figcaption></figure>Rubbing Salt By 1959, with China’s annexation of Tibet and later with the Panchayat system in Nepal, there were stricter border controls and the salt trade started declining. In addition, the activities of Khampa guerrillas based in Nepal who launched cross-border raids on the Chinese military led to tighter controls at the border.There was also an imposition of high taxes and quotas on the production of salt making it an expensive commodity. The popularity of Tibetan salt also waned when awareness spread that the lack of iodine in it led to goitre and cretinism among Nepalis.The Salt Trading Corporation was established in 1963 which coincided with the spread of new roads and airports. Gradually, salt imported from India replaced Tibetan rock salt in Nepal. Indeed, sea salt from India reached Nepal’s mountains faster and was cheaper than rock salt, and its transport by road and even aircraft was subsidised by the state.The loss of the salt trade dealt a heavy blow to the economy, and ultimately changed the socio-economic status of the trans-Himalayan regions. Traders and their families were forced to migrate or  take up alternative occupations. In Olangchunggola in northeastern Nepal, the decline of the salt trade destroyed the local economy, impoverishing families.Read also: <a href="https://www.nepalitimes.com/banner/gift-a-goat/">Gift a goat to Tibet nomads in Nepal</a>, Nepali TimesThe salt trade disruption caused a mass exodus of Nepal’s Himalayan communities to Taplejung, Dhankuta, Kathmandu and even Darjeeling. The Thakalis of Mustang  moved to Kathmandu and engaged in international trade.  The Sherpas of the Khumbu region found alternative employment in mountaineering and tourism, while some communities in Dolpo and Mugu clung to the declining salt trade.The end of the Nepal-Tibet salt trade also stopped cross-border community and family links. The cessation of the trade also led to a loss of skills, art forms, livelihoods and traditions like the salt-carrying yak and sheep caravans. Now, there are motorable roads in most places where the caravans used to traverse.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111144/63721c6f9c7e80680e0bd490jpeg.jpg" alt="" width="1162" height="1438"><figcaption> </figcaption></figure>Some former salt traders now rear livestock, but the closure of pastures in Nepal and Tibet have affected herders on both sides of the border.  This in turn has resulted in the decline of wool production and traditional apparel like bakkhu and docha, leading to a loss of knowledge, skills, craft, art forms and festivals, particularly among younger Nepalis.The Nepal government could have introduced alternative livelihood programs to offset the effects of the termination of the salt trade, made worse by the Himalayan barter economy being affected by monetised trade. Communities have not had time to adapt, since many of these changes came within a generation.The Himalayan region, which used to export grain to Tibet in the past, has now been reduced to importing rice and other food items from Tibet. Himalayan self-reliance has been replaced by dependency and hyper-consumerism. Gone are vestiges of the salt-economy and the socio-cultural ties it fostered.Read also: <a href="https://www.nepalitimes.com/banner/fixing-the-broken-parts-in-nepal-china-ties/">Fixing the broken parts in Nepal-China ties</a>, Kanak Mani Dixit(Jag Bahadur Buda is a student of anthropology. Adapted from the <a href="https://www.himalkhabar.com/news/128848">original</a> in the March issue of Himal magazine by Shristi Karki.)

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The salt of the earth

<h2>Tibet’s Muslims settled in Nepal in waves, but they all have one thing in common: Ramadan</h2><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d6d79c7e80680e0314aajpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Ahmed Dulla with his 20 month old daughter Meherin, enjoying his iftar meal after fasting all day. Pic: Bikram Rai</figcaption></figure>Mention Tibet, and the first thing that comes to mind is the Dalai Lama and Buddhism. However, Muslims have been as much a part of the fabric of Tibetan culture as their Buddhist counterparts.It is hard to distinguish <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Tibetan-muslims-celebrate-ramadan,1505" target="_blank" rel="noopener">Muslim Tibetans</a> from their Buddhist compatriots since they share the same language, food, clothing, culture and heritage. Tibetan Muslims have also contributed to the preservation of Tibetan culture wherever in the world they have settled. It is only their faith that sets them apart.Historically, Muslim traders from Kashmir and Ladakh settled in Tibet in the 17th century, during the time of the fifth Dalai Lama. They were granted permission to build mosques and have burial ground along with other privileges such as being able to buy land and continue their trade. They started marrying Tibetan Buddhist women, who later converted to Islam. As the community expanded, it later included Tibetans of Nepali origin.Lhasa still has four mosques, the first of which Bada Masjid was built in 1716 with a smaller one built in the 1920s. The remaining two mosques are in Gyangda Linka, where the burial ground is located. There are two more mosques in Xigatse and Changdu.Tibetan Muslims in Lhasa were always allowed to freely practice their religion. But after the Chinese annexation in 1950, most Muslims migrated to Nepal and lndia with the Dalai Lama and other Tibetans.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d6da9c7e80680e0314abjpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>“Business was always good in Tibet, and it was booming even during the Cultural Revolution. The political tension did not hamper our trade, but we moved out of Tibet because of concern for our religion,” recalls Abdul Rehman (pictured above), 68, who was born in Lhasa but moved to India in the 1960’s. After university, he moved to Kathmandu 28 years ago to start his own jewellery business in Thamel.Returning from the afternoon prayers at Jame Masjid, as he settled down in his antique jewellery boutique, Rehman echoed the feeling of most Tibetan Muslims in Nepal: "In all these years, I have never ever been made to feel like an outsider here in Nepal. The tourist business is good, and the people too are very friendly."There are about 120 Tibetan Muslim families in Kathmandu, of which some like Rehman are of Kashmiri ancestry who moved to Kathmandu for trade and business. Tibet, Nepal and India have always shared a special connection because of interlinked trade which translated into new communities such as Tibetan Muslims who trace their ancestry mainly to Kashmir and Ladakh.Tibetan Muslims in Nepal are further categorised as 'Khache' (from Kashmir and hold Indian passports) and 'Khazar' (who have Nepali ancestry and nationality). The only difference between the two is that the Khache regard the Dalai Lama as the Tibetan leader and mark his birthday. Most of them have now intermarried, blurring the distinction between the two.<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Dulla%20,345" target="_blank" rel="noopener">Ahmed Dulla</a>, 30, born in Nepal, belongs to the ninth generation of Tibetan Muslims. His family moved from Lhasa to Kathmandu in the 1970's, because their ancestors were from Nepal. Dulla studied in India and returned eight years ago to start a shoe business. His wife Bushra Yusuf is a Tibetan Muslim of Kashmiri ancestry.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d6dd9c7e80680e0314acjpeg.jpg" alt="" width="640" height="427"><figcaption> </figcaption></figure>"We Tibetan Muslims have relatives all over. We still have family in Lhasa, Ladakh, Kashmir, and in Kalimpong and Darjeeling. It is only geographically that we are apart, otherwise we are all the same, culturally and religiously," Dulla tells us.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d6e09c7e80680e0314adjpeg.jpg" alt="" width="640" height="427"><figcaption> </figcaption></figure>Dulla's uncle Karimullah, 55, was born in Lhasa and moved to Kathmandu in 1969. His grandfather was a Nepali Hindu who worked at the Nepal Consulate in Lhasa, and grandmother was a Nepali Buddhist. They both converted to Islam while in Tibet and mingled with the Tibetan Muslim community.Despite being a small group, Kathmandu’s Tibetan Muslims are a strong, tightly-knit community who this month are observing Ramadan like Mulsims all over the world, not eating all day and breaking their fasts after sundown with a feast."The purpose of Ramadan is to purify your thoughts and have control over yourself. It helps bring self awareness within us," says Dulla as he breaks his fast with customary dates, followed by a great variety of kebabs, curries and desserts like sewai and kheer.Read also: <a href="http://archive.nepalitimes.com/news.php?id=19550#.Wwb7_TSFN0w" target="_blank" rel="noopener">Ramzan Kareem</a><a href="http://archive.nepalitimes.com/news.php?id=2047#.Wwb7lDSFN0w" target="_blank" rel="noopener">Nepali Muslims</a><a href="http://archive.nepalitimes.com/article/nation/assimilating-generations-of-Newari-muslims,2937" target="_blank" rel="noopener">How to braid two cultures together</a>

There are Muslims in Tibet, too

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

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>.

Flouting rules caused Saurya tragedy

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

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Walking, working, worshipping in Patan