<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221129121128/6385ed629c7e80680e0cc8d2jpeg.jpg" alt="" width="3501" height="1500"/><figcaption>Photos: MONIKA DEUPALA</figcaption></figure>The government has officially announced that the young woman who died in Dhulikhel Hospital on Saturday ten days after giving birth was Nepal’s first COVID-19 fatality.Although tests showed that she indeed was infected with the novel coronavirus, we do not know the true cause because she does not fit the demographics. There is no evidence yet that pregnant women or those who have just given birth are more prone to the illness.Could she, while being infected with COVID-19, have died of pulmonary embolism, or did she have fulminant pulmonary TB which is always a possibility in Nepal? Similar questions will be asked about the young Nepali worker who died in quarantine in Banke on Sunday soon after returning from India, the second to die of the coronavirus.The number of Nepalis testing positive for the novel coronavirus has now reached 291, with another 11 cases on Sunday from Rautahat. Overseas, 96 Nepalis have died of the virus, 77 of them women and 19 women. The majority of the deaths (63) were in UK, with 15 fatalities in the United States.COVID-19 continues its relentless global rampage, but it has also helped transform medicine in more positive ways.For example, patients with COPD (chronic obstructive pulmonary disease) are literally breathing easier because of cleaner air. Anecdotally, they are using much less supplemental oxygen, or have even stored their oxygen machines for now. Asthma exacerbations also appear to be significantly less.Doctors had thought such relief for COPD patients was not possible. And they acknowledge that this may just be a temporary reprieve, as air pollution levels are sure to climb once the lockdown is lifted.If people continue to wear masks (even a simple cloth masks) and frequently wash hands with soap, it will help keep in check out not only COVID-19 but other chronic respiratory and gastro-intestinal infections.<a href="https://www.nepalitimes.com/banner/covid-19-revives-nepals-wash-drive/">COVID-19 revives Nepal's WASH drive</a>, Sonia AwaleThere is every likelihood that because of COVID-19 precautions, <a href="https://www.nepalitimes.com/opinion/prevention-while-searching-for-a-cure/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/prevention-while-searching-for-a-cure/&amp;source=gmail&amp;ust=1589790313386000&amp;usg=AFQjCNHvgzXMfy84xALGle9mNXH0RXx7og">doctors in Nepal will be seeing fewer patients with lung and stomach ailments</a> once the pandemic retreats. This would be similar to the dramatic drop in orthopedic injuries at hospital emergencies post-breathalyser testing in Nepal.There could be many before and after COVID-19 studies, especially pertaining to infectious diseases that may show these differences in stark relief.Interestingly, there are heated debates about the efficacy of masks even though Hong Kong, China, Taiwan, South Korea and Japan have clearly shown that masks are instrumental in slowing the spread of the virus. Pro-mask advocates in the United States (where wearing one is seen as a violation of personal liberty) are fighting back with colourful twitter hashtags like #wearafuckingmask.Together with physical distancing, hand washing and masks are practical ways to prevent against this virus, regardless of when the vaccine will be available. Unfortunately, no promising drug treatment seems to be on the horizon in the ongoing clinical trials.<a href="https://www.nepalitimes.com/opinion/countries-cooperating-to-find-covid-19-cure/">Countries cooperating to find COVID-19 cure</a>, Buddha BasnyatAnother area that COVID-19 could change in medicine would be in diagnostics. The pandemic has revealed the importance of quick, reliable test kits for pre-existing biblical diseases that still plague countries like Nepal: tuberculosis, typhoid and typhus. These are some of the greatest killers in our part of the world and yet we have no quick reliable tests. Maybe COVID-19 will speed up the development of quick test kits for these disease too.The coronavirus crisis has also underlined the <a href="http://archive.nepalitimes.com/news.php?id=19038#.XsDmP_8za70" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D19038%23.XsDmP_8za70&amp;source=gmail&amp;ust=1589790313386000&amp;usg=AFQjCNE56RLoRySzMMticl6fCVZMtKP1sQ">importance of universal health care</a> which can save millions of poor in the poorest countries against catastrophic outbreaks.  Telemedicine, the importance of vaccines and properly conducted drug trials including other forms of medical research may now more clearly be understood, not only by health care professionals but the public at large.The other area of transformational change as a result of COVID-19, is in the  field of medical publications. There are more than 7,000 papers on the pandemic and many of them have published in pre-print sites like BioRxiv, MedRxiv, and Rxiv. Anyone can submit a paper and site managers will give a cursory look and decide to publish or not so that, if published, it is readily available to the world especially during the pandemic when speed and sharing of knowledge is of the essence.This is potentially hugely advantageous as scientists may be able to act on the findings and make a difference. These pre-prints can later be  subjected to the regular peer review process and be published in traditional journals which are slower, more secretive and cumbersome procedure.There is a down-side because unscrupulous scientists can make things up and publish in the pre-print format which has a greater chance of escaping the rigors of proper peer review. Indeed this is recently what happened.In January, Indian scientists claimed in BioRXiv that the <a href="https://www.nepalitimes.com/opinion/what-is-novel-about-the-novel-coronavirus/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/what-is-novel-about-the-novel-coronavirus/&amp;source=gmail&amp;ust=1589790313386000&amp;usg=AFQjCNFJWl79SvZNky2BZ44-K7znpR1G9Q">novel coronavirus </a> was manufactured in the laboratory because there were strong similarities between the genetic sequence of HIV and SARS-CoV-2. However many well-known molecular researchers were strongly critical of the methodology in the Indian study, which was thought to be a hoax, and was eventually retracted.The pandemic turbocharged the pre-print process for research papers. Most scientists may not bother with the ossified ways of initial peer reviewing, even though there clearly are dangerous pitfalls.Read also: <a href="https://www.nepalitimes.com/opinion/prevention-while-searching-for-a-cure/">Prevention while searching for a cure</a>, Buddha BasnyatBuddha Basnyat is a clinical researcher at Patan Academy of Health Sciences and a <a href="https://www.nepalitimes.com/opinion/what-is-novel-about-the-novel-coronavirus/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/what-is-novel-about-the-novel-coronavirus/&amp;source=gmail&amp;ust=1589790313386000&amp;usg=AFQjCNFJWl79SvZNky2BZ44-K7znpR1G9Q">frequent health columnist</a> for Nepali Times.

Buddha Basnyat

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Silver linings in the COVID cloud

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108151124/636a66fa9c7e80680e0599b4jpeg.jpg" alt="" width="1500" height="1081"/><figcaption>Photo : BIKRAM RAI</figcaption></figure>Nepal is recognised as the only low-income country to have made rapid progress cutting poverty and boosting public health and education in recent decades. But can these achievements be sustained in the 2020-2030 decade?The <a href="https://archive.nepalitimes.com/regular-columns/GUEST-COLUMN/Saving-one-mother-at-a-time,816" target="_blank" rel="noopener">country’s maternal mortality rate decreased</a> from 539 deaths per 100,000 live births to 239 deaths between 1996 and 2016. The adult literacy rate rose from 20% in the 1980s to 67% in 2018, and the proportion of Nepalis living below the poverty line <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide/" target="_blank" rel="noopener">dropped from 42% to 21% in two decades</a>.Yet the poorest still <a href="https://www.nepalitimes.com/banner/federalism-leaves-nepals-medical-sector-ailing/" target="_blank" rel="noopener">do not have access to affordable healthcare</a>. The school dropout rate is as high as the <a href="http://archive.nepalitimes.com/news.php?id=41#.XftNv5MzaUk" target="_blank" rel="noopener">enrolment rate</a>. In urban centres, people breathe <a href="https://www.nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking/" target="_blank" rel="noopener">some of the foulest air in the world</a>, reducing their life expectancy by up to four years. Many lack safe drinking water.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> Editorial<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 BhattaraiLocal elections in 2017, after a gap of 20 years, were supposed to close these gaps by delivering accountable, elected leaders. Two years later, the euphoria has evaporated. The state of the state remains stagnant.“The elections helped us rebuild grassroots democracy and decentralise power, but the lack of accountability at all levels of government continues to be a major challenge,” says Min Bahadur Shahi of the National Planning Commission (NPC). “This is why the primary agenda of the NPC’s 15th periodic plan is governance reform, controlling corruption and promoting transparency.”As we step into the new decade, there are questions about Nepal’s progress in human development, including whether we are on track to meet the UN’s Sustainable Development Goals (SDGs) and achieve double-digit growth. Reaching these targets will require huge investments in healthcare, schools and nutrition. With the <a href="https://www.nepalitimes.com/editorial/poor-health-makes-nepalis-poorer/" target="_blank" rel="noopener">emergence of non-communicable diseases</a>, Nepal now faces a double burden: rising rates of <a href="https://archive.nepalitimes.com/article/nation/diabetes-in-south-asia,3018" target="_blank" rel="noopener">diabetes</a>, cardiovascular diseases and cancer, which are expensive to treat, while the poor continue to die of easily curable infections.Said Sanjib Sharma, doctor at the BP Koirala Institute for Health Sciences in Dharan: “Our efforts now should be on strengthening primary health care and prevention and early detection of diseases using existing tools, as well as new technologies such as artificial intelligence for virtual expert consultation and drug delivery.”Read also: <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38051&amp;preview_nonce=38f8426e6c&amp;preview=true" target="_blank" rel="noopener">Nepal in 2030,</a> Sanghamitra Subba<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=38046&amp;preview_nonce=d2d7129548&amp;preview=true" target="_blank" rel="noopener">A future written in the stars,</a> Sanghamitra SubbaDespite poverty falling by half, one-third of Nepali children <a href="https://www.nepalitimes.com/banner/nearly-half-of-nepali-children-still-malnourished/" target="_blank" rel="noopener">are still malnourished</a>. Anaemia among women has actually increased in recent years. The government’s Multi-sectoral Nutrition Plan, developed in 2012, works to improve maternal and child health, vaccination rates and malnutrition.“Development in Nepal is still synonymous with roads, but investing in early childhood development is equally important, it is a component of development,” said Kiran Rupakheti of the NPC, which wants nutrition programs to reach the grassroots.Even as literacy rates rise, gender disparity is expected to continue in the coming decade. As female literacy improves, for instance, <a href="https://www.nepalitimes.com/banner/child-marriage-in-nepal-eloped-at-13-mother-by-17/" target="_blank" rel="noopener">child marriage</a> and <a href="http://archive.nepalitimes.com/news.php?id=19596#.XftPh5MzaUk" target="_blank" rel="noopener">girls’ dropout rates</a> will persist. Experts say improving the <a href="https://www.nepalitimes.com/banner/after-quantity-nepals-education-needs-quality/" target="_blank" rel="noopener">quality of instruction</a> at community schools, encouraging female students in technical fields and promoting applied education should be priority areas in the 10 years ahead.Nepal is expected to graduate from lower-middle-income country status by 2030, but that is unlikely if the SDGs goals are not met. For this, the government will need to spend $1billion a year in infrastructure alone. Nepal is hoping to sustain <a href="http://archive.nepalitimes.com/regular-columns/guest-editorial/guest-editorial-Nepal-economic-growth,923" target="_blank" rel="noopener">double-digit growth</a> of above 10% and achieve per capita income of $1,595 by the end of the decade.“I’m hopeful about our prospects but if we uplift the economic status of women, who make up more than half of the population, we will get there sooner,” said Saru Joshi, gender and development expert.<a href="http://archive.nepalitimes.com/blogs/thebrief/2017/05/24/bleak-economic-report/" target="_blank" rel="noopener">A 2017 World Bank report</a>, however, stated that if present trends continue Nepal will not reach its middle-income target. It pointed out that despite rapid reduction in the poverty rate, the country’s development path has not led to economic growth but perpetuated a shortage of jobs at home, which in turn is fuelling further <a href="https://www.nepalitimes.com/editorial/reducing-labour-pain/" target="_blank" rel="noopener">outmigration</a>. And while remittance accounts for one-third of the national GDP, it is a symptom of deep-seated, chronic problems.Planners say that a slew of new hydropower and large infrastructure projects planned for the next 10 years, a boom in <a href="https://www.nepalitimes.com/opinion/guiding-nepals-tourism-industry/" target="_blank" rel="noopener">tourism and the service sector</a>, and better connectivity will create jobs at home, discouraging youth from seeking employment elsewhere.“We know our targets are ambitious but we also have the most favourable environment to achieve it. There is finally stability, the present growth is already at 7%, some <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener">major hydropower projects</a> are taking off and we have made huge investments in information technology,” said Rupakheti.Shahi forecasts optimistically: “The 2020s will be a progressive decade of sustainable and just development. There will be prosperity along with social justice. There will be double-digit growth, increased investment from the government and the focus will be on quality, not quantity.”

Sonia Awale

How will Nepal develop in the next decade?

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

Visit Nepal in the monsoon

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

Not poor, but not rich

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

Nepal’s bubble economy

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

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Walking, working, worshipping in Patan