<a href="https://www.nepalitimes.com/wp-content/uploads/2019/12/8-9.jpg" data-elementor-open-lightbox="no"></a><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a66e89c7e80680e0599afjpeg.jpg" alt="" width="1500" height="1163"/>Ten years ago, at the beginning of the last decade, Nepalis looked forward with optimism to a country with greater connectivity — at least a railway or two, smart cities, more energy sources and <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/A-great-leap-forward,198" target="_blank" rel="noopener">a great leap forward</a> in infrastructure. The war had ended, a new constitution was being drafted and there was optimism about the future in 2010.Fast forward 10 years and many of those projects have not materialised, while even the ones nearing completion, like <a href="http://archive.nepalitimes.com/page/melamchi-coming-to-kathmandu" target="_blank" rel="noopener">Melamchi</a>, Pokhara Airport, or the <a href="https://www.nepalitimes.com/banner/our-land-is-us-we-are-our-land/" target="_blank" rel="noopener">Kathmandu-Tarai Expressway</a>, are delayed. The 2015 earthquake and Blockade, as well as endemic corruption, were blamed. But it was mainly failure of political leadership.Read Also: <a href="https://www.nepalitimes.com/editorial/trilateral-trains/" target="_blank" rel="noopener">Trilateral Trains,</a> EditorialYet, many of these projects and others planned for the coming decade are more ambitious than ever. The government hopes to start on a new international airport in <a href="https://www.nepalitimes.com/here-now/economy-ecology-of-nijgad-airport/" target="_blank" rel="noopener">Nijgad</a>, upgrade Kathmandu airport, build two highway tunnels to Rasuwagadi, start a feasibility study on the Kerung-Kathmandu railway, expedite <a href="https://archive.nepalitimes.com/article/nation/planned-new-east-west-railroad-and-expressway-threaten-the-Chitwan-National-Park,1079" target="_blank" rel="noopener">the East-West Railway</a>, and add at least <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener">10,000MW of hydropower</a> to the grid in the next decade.Nepalis have got used to delays and disappointment, and there is a ‘we will believe it when we see it’ attitude about the megaprojects in the pipeline. A government that cannot even upgrade the Nagarkot road or finish the 5km stretch from Chabahil to Gokarna, it is felt, has no right promising a $6billion new airport by clearing native forest.Read Also: <a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/" target="_blank" rel="noopener">An energy windfall for Nepal</a>, Kushal GurungEarlier this year, Finance Minister Yubaraj Khatiwada promised that the government would complete the feasibility study of the <a href="https://www.nepalitimes.com/banner/which-way-will-the-tibet-nepal-railway-go/" target="_blank" rel="noopener">Kerung-Kathmandu railway</a> and begin construction by 2022. This came without a definite budget or financial modality, still the Nepali engineer on the project, Paribesh Parajuli says it will happen within the coming decade.“The detailed project report and feasibility study for the Kerung-Kathmandu Railway will take more than two years but we are hopeful that it will be done within the given timeframe,” Parajuli told Nepali Times. “If everything goes as planned, the railway should be completed within nine years of the start of construction.”Read also: <a href="https://www.nepalitimes.com/?p=38023&amp;preview_nonce=024823c344&amp;preview=true" target="_blank" rel="noopener">Towards 2030</a><a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38038&amp;preview_nonce=e8166bf726&amp;preview=true" target="_blank" rel="noopener">Another decade to get it right,</a> EditorialAnother faraway project is the 945km East-West Railway. To span 24 Tarai districts from Mechi to Mahakali, it is expected to be completed by the middle of the coming decade. In fact, 30km of the track-bed from Bardibas to Nijgad is scheduled to be finished next year. This line will connect with the 69km Janakpur-Jayanagar-Kurtha line that will start operating in March 2020. Also being surveyed is the <a href="nepalitimes.com/nepali-times-polls/do-you-think-kathmandu-raxaul-rail-will-ever-be-built/" target="_blank" rel="noopener">Raxaul-Kathmandu Railway</a>.Out of the 22 <a href="https://www.nepalitimes.com/editorial/communist-capital/" target="_blank" rel="noopener">national pride projects</a>, 17 are scheduled for completion in the next 5 years, according to the National Planning Commission's Approach Paper. Sushil Bhatta of the NPC says: “The government is focusing on giving priority to certain projects, making sure that resources are effectively and efficiently utilised in order to meet the targets that have been outlined.”Read Also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38061&amp;preview_nonce=012fb23553&amp;preview=true" target="_blank" rel="noopener">Nepal in the 2020s,</a> Sewa Bhattarai<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38073&amp;preview_nonce=5c5e53a600&amp;preview=true" target="_blank" rel="noopener">How will Nepal develop in the next decade,</a> Sonia AwaleIn the next five-year periodic plan, the government is prioritising completion of projects that have already begun, allocating resources on the basis of the progress achieved and the significance of the projects to the economy.Bhatta says: “We want to give priority to result-oriented national pride projects and those that help enhance economic growth.”The government is determined to complete Nijgad International Airport in the coming decade despite strong protests from environmental activists and criticism that it is too grandiose. Bhairawa and <a href="https://archive.nepalitimes.com/article/nation/Pokhara-waits-for-take-off,4136" target="_blank" rel="noopener">Pokhara</a> airports will be operational in 2020 and 2021, but whether they will act as alternative airports and reduce congestion in Kathmandu is debatable.Read Also: <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/" target="_blank" rel="noopener">Does Nepal need a 4th international airport?,</a> Om Astha RaiDuring this year’s <a href="https://www.nepalitimes.com/editorial/invest-in-investment/" target="_blank" rel="noopener">Nepal Investment Summit</a> there were numerous proposals for smart cities in Hetauda — integrated urban development programs that were built on digital frameworks, improved technology, energy-efficient apartments, electric vehicle charging stations and bus rapid transit.Between 2020-2030 there will also be explosive growth in the <a href="https://www.nepalitimes.com/here-now/nepal-telecom-or-go/" target="_blank" rel="noopener">telecommunication sector</a> with the introduction of 4G and 5G networks. Anand Khanal at the Nepal Telecommunications Authourity says, “In the next decade, we will see blanket coverage of mobile broadband in the country. The infrastructure will be established so that 100% of the public will have access to the internet and broadband service. “Nepal hopes to become a <a href="https://archive.nepalitimes.com/regular-columns/guest-editorial/muddy-road-middle-income,928" target="_blank" rel="noopener">middle-income country by 2030</a>, and the country needs to invest more than $1billion annually on infrastructure development to reach this goal.Bhatta says: “To achieve our 5-year goals and even 25-year goals, we need to streamline our projects, strategically invest in those projects and push for a paradigm shift in the way Nepal manages development.”Read Also: <a href="https://www.nepalitimes.com/banner/calendar-of-economic-change/" target="_blank" rel="noopener">Calendar of economic change</a>, Om Astha Rai

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Nepal in 2030

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131140/636a4e399c7e80680e04fca3jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>TRAIN A COMIN': Kerung (Gyirong) used to be a staging post during the 19th century Nepal-Tibet wars.</figcaption></figure>Tashi Sherpa runs the only teashop in Rasuwa Gadi on the Nepal side of the border, 170km north of  Kathmandu. Nearby, dozens of trucks carrying imported Chinese goods cross the Bhote Kosi into Nepal.Sherpa has heard that a railroad to Kathmandu is also planned, but she will only believe it when she sees it. “Dream train,” she calls it.Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=29461&amp;preview=true" target="_blank" rel="noopener">Which way will the Tibet-Nepal railway go?</a>, Ramesh Bhushal<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=29408&amp;preview=true" target="_blank" rel="noopener">Trilateral Trains</a>, Editorial But what Tashi Sherpa does not know is that a feasibility study conducted last year has proposed a rail route under the mountains instead of along the river, thus  bypassing Rasuwa Gadi altogether. People along the highway may not even see the <a href="https://archive.nepalitimes.com/article/headline/Nepal-India-China-rail,3092" target="_blank" rel="noopener">train</a> because most of the track will be in tunnels drilled beneath Langtang, Gosiankunda and Shivapuri to Tokha near Kathmandu.Truck driver Balaram Rimal sips tea at Sherpa’s shop as he waits to cross into China. He says: “All this talk of trains is nonsense. First they should fix this scary road.”The railway forms part of China’s Belt Road Initiative and will be an extension of the <a href="https://nepalitimes.atavist.com/the-tibet-train" target="_blank" rel="noopener">Qinghai-Tibet Railway</a> from Xigatse to Kerung and on to Kathmandu. However, crossing the Himalaya through a series of long tunnels will not just be an engineering feat, but will cost at least $5.5 billion.The Chinese have built an imposing 9-storey building at the border that looks like a shopping mall and houses a well-equipped customs and immigration office. The Nepal side is a tin shed flying a forlorn Nepali flag. <a href="https://nepalitimes.atavist.com/bordering-on-helplessness" target="_blank" rel="noopener">The 2015 earthquake destroyed the Nepal border post,</a> and its reconstruction has been delayed due to a dispute with the contractor.Finjo Lopchan runs Potala Guest House near the border, and sums it all up: “How can a country that can’t even put up a building, drill a train tunnel through the mountains? My head spins when people talk about railways. Shameless government.”

Dream train

<figure><img width="1000" height="1385" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25509c7e80680e0439c0jpeg.jpg" alt=""/><figcaption>Illustration: DIWAKAR CHETTRI</figcaption></figure>Article 5 of the 1950 Indo-Nepal Treaty implicitly forbids arms imports directly from third countries. Opposition to this provision has become the bedrock of Nepali nationalism over the years, and the demonstrated ability to flout it has catapulted some to become national heroes.From King Mahendra onwards, Nepal’s rulers have been tempted to use this shortcut to fame. India’s response has also been consistent: violators are made to pay a heavy price. The latest to play the nationalism card is Prime Minister Oli in fiery rhetoric against the Indian Blockade that landed him a thumping victory in the 2017 elections.Read also:<a href="https://www.nepalitimes.com/?p=20774&amp;preview=true" target="_blank" rel="noopener">A yam between 3 boulders</a>, Editorial<a href="https://www.nepalitimes.com/here-now/hitching-our-wagon/" target="_blank" rel="noopener">Hitching our wagon</a><a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=20801&amp;preview=true" target="_blank" rel="noopener">Eminently beneficial for India and Nepal</a>, Ajit BaralSince then, he has pushed pro-China policies, signed the Belt Road Initiative (BRI), clumsily withdrawn Nepal from a BIMSTEC joint military exercise in Pune last September, and pressed ahead with the bilateral military exercises with China which could have been prompted by his party Co-Chair going down on his knees during a visit to India.Nepal now has been given <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/03/21/nepal-gains-access-to-ports/" target="_blank" rel="noopener">access to four Chinese ports</a>, ending the Indian monopoly on transit. Though symbolic for now, this is of monumental significance for Nepal since it is now no more India-locked. Article 5 has become redundant.But in a multi-polar world, Nepal has to tread carefully. Barely a month after Foreign Minister Pradeep Gyawali met US Secretary of State Mike Pompeo in Washington DC and discussed the Indo-Pacific Strategy, Co-Chair Dahal dashed off a statement supporting the beleaguered Venezuelan regime which the West is trying to bring down. An Indian Army Chief recently said Nepal’s ‘geography’ required it to tilt towards India, like Bhutan.Nepal now finds itself squarely in the middle of these two once bitter enemies, and now competing economic giants. The West has made common cause with India and other Asian countries in an attempt to contain China’s rise. Oli unwittingly finds himself in the middle of this widening power game -- now he does not just need <a href="https://www.nepalitimes.com/latest/oli-reassures-india-before-china-visit/" target="_blank" rel="noopener">to balance India and China</a>, but also the West. How well he handles these competing interests will determine whether Nepal will remain at peace with its territorial integrity intact, and whether Oli’s own political career will remain on track.Nepal’s politicians used to spout anti-India rhetoric at election time, and then undertake their very first official trip abroad to Delhi to expiate for their sins and start a fresh page of cooperation based on the rhetoric of historical ties and cultural affinity. Nepal’s elite and their Indian counterparts ended up with business as usual.It is noteworthy that neither Nepal nor India have made any attempt to stabilise Nepal’s economy, and ensure prosperity. The main preoccupation of Nepal’s politicians has been to remain in power as long as possible for which they sought Indian blessings. New Delhi, for its part, was happy as long as Nepal remained a source of soldiers and doormen. For this arrangement to work, Nepal was expected to pay deference and remain aligned southwards. This marriage of convenience lasted nearly six decades through absolute monarchy, <a href="http://archive.nepalitimes.com/news.php?id=10616#.XE6QYNIza70" target="_blank" rel="noopener">the Maoist uprising</a>, a <a href="https://nepalitimes.atavist.com/three-kings-in-four-days-nepal-massacre" target="_blank" rel="noopener">royal massacre</a>, and the writing of a disastrous constitution that threatens the nation’s very existence.But this status quo has changed with the awakening of the sleeping dragon, China. The reconfiguration of regional and global power, if handled well, could bring considerable economic benefit to Nepal. Failure to manage it may spell mortal danger. Prime Minister Oli is also at the crossroads of his political life, and given fragile health, his focus will be on the legacy he wants to leave behind.  Ideally, India could swallow its pride, accept that fact that the 2015 Blockade was a mistake, recognise Chinese influence in Nepal as inevitable, and work with Beijing to lift Nepal out of poverty for a win-win-win situation for all three sides. This is the best, yet least likely, outcome.Indians, like the Nepalis, are an emotive lot and logical long term thinking is not their forte. New Delhi is currently playing Oli off against Dahal and wants a more favourably aligned government in Nepal which they have easily executed in the past and know they can repeat. Oli thinks (wrongly) that he can get China, India and Nepal to work together for the benefit of all, even though New Delhi abhors the idea of Nepal as an intermediary between India and China.For Nepal, India is a known entity. China is an unknown quantity. We do not know if China will come to Nepal’s rescue in times of need, and many Nepalis feel more comfortable with India (despite shortcomings) than with China. There are lessons here for India too, and it cannot be business as usual. New Delhi has got to be more serious about the promises it makes to Nepal.The Indian focus on the Tarai region since 2015 has ruined whatever was left of trust between Kathmandu and New Delhi. ‘One Madhes One Pradesh’ would have divided Nepal horizontally, triggering unimaginable problems. Both sides made a complete mess of it, and it is time for India to let Kathmandu handle this problem to the best of its ability.India’s policy on Nepal has been to keep it at the level of ‘controlled anarchy’ so Nepali leaders have to keep shuttling to New Delhi.  But history has shown anarchy cannot always be controlled. And instead of blaming China for trying to encircle India, it would behoove New Delhi to be magnanimous towards its smaller neighbours and nudge them along on the road to development.A stable and economically vibrant Nepal will contribute to the success of both economies, and help stabilise the region as a whole. Spheres of influence are obsolete, it is time to get on with improving the lives of our people. Bhairaja Panday is a former senior UN official and he is currently MD of Invest Nepal Pvt. Ltd.

Nepal now has to balance not just India and China, but also the West

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a222e9c7e80680e041777jpeg.jpg" alt="" width="800" height="917"/><figcaption>COMMUNIST COVE: The bookshop Nati Bajra (above) ran was a haven for Nepali leftists, who flocked here to read books by Mao Zedong and Kim Il Sung, and chat with the owner.</figcaption></figure>Last week, linguist, writer and song composer Nati Bajra passed away. He was not well known in the mainstream media, but if you were interested in reading five decades ago in inner city Kathmandu, Nati Bajra was the man to go to.People went to him for books, magazines and newspapers of all kinds. His little book store at Bhotahiti in a small alley that led into Dagu Baha was where people sat on a narrow wooden bench with a straw mat. In the age before Internet and television, and when Radio Nepal was too boring, they browsed, bought publications, and lingered to chat with him. Nati Bajra was a one-man public sphere.Among the books and magazines he sold in those days were the beautiful printed, glossy magazines called China and ‘Cheen’ in Nepali. There were some really elegant hard cover books by Kim II Sung. Today many visitors ask why or how Nepal has a Communist Party in power with a majority popular vote. Nati Bajra made a big contribution.These magazines and books painted a utopian picture of communism, and portrayed the United States as the world’s enemy. Adults read the English and Nepali editions with great care and discussed the contents at their local tea shops and rest houses. There was no Nepali translation of Animal Farm to counter the propaganda literature.When the adults were done reading, we children made these glossy publications into text book covers, greatly increasing their shelf life. Whoever designed, published and shipped these publications to Nati Bajra at Bhotahiti, achieved their mission. The publicity value of the books were immense, and 50 years later we have a Nepal Communist Party government.Beyond books, there were also film screenings of how the North Korean and the Chinese armies defeated the Americans in the Korean War.King Mahendra was right when he is said to have told Prime Minister Nehru that communism would not travel to Nepal in a taxi over the newly-inaugurated Arniko Highway. But it did travel through books, magazines and films, and brought up an entire generation of Nepalis to get a glossy and glorified version of Communism.Read also: <a href="https://www.nepalitimes.com/from-the-nepali-press/we-need-answers-from-communists/" target="_blank" rel="noopener">We need answers from communists</a>, Krishna Jwala Devkota<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22319c7e80680e041778jpeg.jpg" alt="" width="800" height="905">There are now Nepalis travelling to China and to the USA all the time, and this generation will vote very differently. Given the fact that our last local elections were held in 1997 and then again in 2017, we do not have a pattern to go by yet. The reason why many local leaders, representing Communist parties, got re-elected could be because they continued to serve and organise the local population despite the fact that they were not in government.Today, the world is different, but not much has changed in using the media, this time social media, to manipulate public opinion. The world of tomorrow will be the result of the electronic media and the fact that many have had a chance to visit places and talk to people with different points of view. It will be the result of the experiences we have had.During a trip to Boston, I met a group of young ‘inventors’ from Rajasthan. They had taken a ride on the brand new subway in New Delhi and were not at all impressed with the system in Boston. Young Chinese who went to the United States and took on English first names are now moving back to China with Chinese first names.Nepali worldview is also changing rapidly as the epicentre of the global economy drifts to the Eastern Hemisphere. Hence do not be surprised if we hear about more and more Nepalis coming back home to raise yaks and buffalos, instead of camel and sheep in the Gulf countries.Anil Chitrakar is President of Siddharthinc.Read also: <a href="http://archive.nepalitimes.com/article/nation/migrants-return-home-after-earthquake,2241" target="_blank" rel="noopener">Migrants inbound</a>, Om Astha Rai

Anil Chitrakar

Reading up on Communism at Nati Bajra’s

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>.