Qatar is one of the most popular overseas destination for Nepali workers, and because of that the Gulf state’s strict measures to stop the spread of coronavirus has had a direct impact on Nepal’s economy.On 9 March Qatar banned the entry of nationals from 14 countries including Nepal, and at least 2,000 Nepali workers in the country have been quarantined. The restriction has also affected Nepal’s economic activities beyond labour migration.<a href="https://www.nepalitimes.com/banner/greens-from-nepal-in-qatars-desert/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/greens-from-nepal-in-qatars-desert/&amp;source=gmail&amp;ust=1584429126680000&amp;usg=AFQjCNHn7YwEcZztCHzoi81nGBan7Kbocg">Kalyan Ghimire’s company</a> Al Saman used to export three consignments of agriculture produce by air to Doha every week, but that business has ground to a halt since the ban on passengers and cargo."We had just received an order for 5,000 kg of strawberries from Qatar, and had sourced them from a farm in Kakani, but the order was cancelled,” Ghimire says. The company also exported vegetables and even gundruk which is in high demand from Nepalis in the Gulf state.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78db9c7e80680e0646cajpeg.jpg" alt="" width="1280" height="960"/><figcaption>The Nepali company Al Saman that sells farm produce like these strawberries have had to halt exports to Qatar because of the ban on passengers and cargo to Doha. All Photos: KALYAN GHIMIRE</figcaption></figure>Ghimire had also just started exporting Nepali bottled water from Rasuwa to Qatar, and sent especially packaged 480 bottles for test marketing in Doha to compete with Evian and other brands. However, the COVID-19 scare has put an end to that experiment as well.Ghimire was part of a 40-member team of government officials, entrepreneurs and farmers taking part in the Agriteq 2020 in Doha from 18-22 March, but the trade fair has been called off.“Such ups and downs are to be expected in any business, and I try not to lose sleep over this as it is beyond my control, but let’s hope we can resume exports,” says Ghimire, who credits Qatar’s ambassador to Nepal Yousuf Bin Mohamed for getting Nepali exporters to diversify their product range.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78de9c7e80680e0646cbjpeg.jpg" alt="" width="1024" height="768"><figcaption> </figcaption></figure>Only Qatar Airways still flies Kathmandu-Doha after Nepal Airlines and Himalaya Airlines both suspended operations between the two capitals after the travel ban. Qatar airways is still carrying transit passengers via Doha to and from Kathmandu and Europe/North America.Ghimire's son Saman who is based in Qatar and manages the business there returned to Nepal earlier this week. "I did not want to be trapped in Qatar as business is down, likely till the end of April, so I managed to get out before the flights got canceled," he says.Read also: <a href="https://www.nepalitimes.com/opinion/labour-mobility/crossborder-virus-and-nepali-migrant-workers/" target="_blank" rel="noopener">Crossborder virus and Nepali migrant workers</a>, Upasana KhadkaThe Qatar Government's travel ban and Nepal's decision to stop issuing labour permits to all destinations including Qatar has put thousands of Nepalis in Qatar as well as in Nepal in limbo. Some 40,000 Nepali individuals who were set to go to Qatar to start employment are stuck in Kathmandu. An unknown number of workers in Nepal on vacation from Qatar are also stranded here, with concerns about their visas or work permits expiring.There are 401 COVID-19 cases in Qatar with four recoveries, and there are supposed to be about 2,000 Nepali workers who have been quarantined. On Wednesday there was a spike of 238 new cases in Qatar was related to quarantined expat workers but details on nationalities have not been revealed.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101152/636b78e19c7e80680e0646ccjpeg.jpg" alt="" width="1200" height="1600"><figcaption> </figcaption></figure>COVID-19 has not distinguished between nationals and expats, politicians and those at the lower rungs of the ladder or between rich and poor. But workers in camps neither have the luxury of social distancing nor the opportunity to work from home."There is definitely a sense of fear among workers,” says Mahesh Nepal, who has been working in Qatar for five years. “There is increased surveillance in the labour camps, and all workers have to undergo tests before and after work each day. Mobility has been restricted and authorities including emergency response teams are on call at all times."Read also: <a href="https://www.nepalitimes.com/here-now/nepals-economy-already-weak-takes-direct-hit/" target="_blank" rel="noopener">Nepal’s economy, already weak, takes direct hit</a>, Sanghamitra SubbaMigrant workers have benefited from the strong health infrastructure and containment efforts in Korea, Malaysia and the Gulf that together have about 1.5 million Nepalis. The consequences of the coronavirus pandemic goes beyond health to Nepal’s economy.As the top destination for Nepali workers in 2018/19, Qatar is important for Nepal’s remittance-based economy. Doha is also an important aerial gateway for tourist traffic and the Nepali diaspora, and any further flight curtailments will have consequences for Nepal beyond migration.The Saudi and UAE blockade of Qatar for the past two years has actually helped the country become more self-reliant and bolstered its capacity to deal with the epidemic. In addition, Qatar has announced a $23 billion stimulus package to help the private sector weather the crisis.Says Mahesh Nepal: “The impact of the pandemic on the Qatar economy could have been worse due to external disruptions on supply chains or imports.”

Upasana Khadka

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Nepalis quarantined in Qatar

<figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937609c7e80680e03fe30jpeg.jpg" alt=""/><figcaption>Photo: OM ASTHA RAI</figcaption></figure>What is it about <a href="https://www.nepalitimes.com/editorial/the-lottery-of-migration/" target="_blank" rel="noopener">labour migration</a> that keeps drawing hundreds of thousands of people every year away from their homes and families despite the evident risks?<a href="http://panosa.org/" target="_blank" rel="noopener">Panos South Asia</a>’s new collection of reportage from the region, Uncertain Journeys: Labour Migration from South Asia seeks to answer this question through the eyes of 15 senior journalists who researched their stories in destination countries. Based on their interviews, they analyse various aspects of labour migration.Read also: <a href="https://www.nepalitimes.com/opinion/changing-the-headlines-on-migration/" target="_blank" rel="noopener">Changing the headlines on migration</a>, Upasana Khadka<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/labour-pain/" target="_blank" rel="noopener">Labour pain</a>, Om Astha RaiThe first chapter on Nepal is by <a href="https://archive.nepalitimes.com/article/nation/caught-in-the-middle/migration-agency-exploitation,4003" target="_blank" rel="noopener">Upasana Khadka</a>, who has reported widely on the issue of Nepali migrants in the Gulf and Malaysia <a href="https://www.nepalitimes.com/opinion/changing-the-headlines-on-migration/" target="_blank" rel="noopener">for this newspaper</a>. Khadka likens labour migration to a lottery, a culturally fatalistic view borne out of desperation to escape poverty back home. She narrates the stories of four individuals: Sharmila, Ramesh, Shama and Ram who are unlucky and are either caught, cheated, trafficked, or deported. Yet, even though they know the risks,  thousands of others take same route to seek their fortunes. <img width="200" height="174" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937639c7e80680e03fe31jpeg.jpg" alt="">‘Individuals are often aware of the common risks of migration … however, many continue to make risky decisions, not always because of lack of information, but despite it … it is possibility of being lucky that encourages so many to take risks,” she writes.Khadka also talks about the lack of bilateral agreements that have encouraged  avenues for illegal migration. Case in point is the <a href="https://www.nepalitimes.com/banner/homes-away-from-home/" target="_blank" rel="noopener">blanket ban on female domestic workers leaving Nepal</a>, despite which migrants continue to risk unauthorised channels to make it to their destination, setting in motion the chain of trafficking.Janak Raj Sapkota, author of the much-acclaimed book Kahar: Baideshi Rojgarile Bitholindo Samaj’ delves into human trafficking in Nepal under the guise of legal foreign employment, and the lack of laws that makes the connection between the two that has helped traffickers work behind the scenes.He argues that the political protection enjoyed by the remittance industry has aided this form of modern-day slavery to flourish, and until the ambiguities in legal structures are cleared and stronger policies are in place, Nepalis abroad will continue to be duped, or worse, abused and <a href="https://www.nepalitimes.com/banner/paying-an-arm-and-a-leg/" target="_blank" rel="noopener">maimed</a>. Read also:<a href="https://www.nepalitimes.com/banner/paying-an-arm-and-a-leg/" target="_blank" rel="noopener">Paying an arm and a leg</a>, Om Astha Rai<a href="https://nepalitimes.atavist.com/nepalis-killed-in-the-line-of-duty" target="_blank" rel="noopener">Killed in the line of Duty</a>, Om Astha Rai and Sonia AwaleUncertain Journeys: Labour Migration from South AsiaEdited by A.S. PanneerselvanSpeaking Tiger Publishing, New Delhi Price: INR 499<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937649c7e80680e03fe32jpeg.jpg" alt="" width="200" height="278">Filmmaker Kesang Tseten whose acclaimed 2008 documentary <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.imdb.com/title/tt1519643/" target="_blank" rel="noopener">In Search of the Riyal</a> about four young Nepalis on journeys to the Gulf first bought the stark realities behind the remittances, also has a chapter about filming in Qatar and how he had to sneak behind aircraft crew to capture conversations with migrants inside the planes.Eleven years later he revisits characters from the first film for a sequel. He found that Danvir Jogi is still in Qatar and making good money, Navin Rai returned to a broken marriage and left again for Dubai, Prem Bareilly is in Dharan working as a silversmith amidst stigma of being a Dalit and Bhojraj Darzi is now a successful pig farmer in Nepal. But none of these are representative tales, Tsenten stresses, pointing out that it is vital to understand and sympathise with Nepalis opting to go abroad.The chapters on other South Asian show that there are a lot of similarities between the tragic tales of Nepali workers and those from Pakistan, Sri Lanka, Bangladesh and India. The case of Zulfiqar Ali of Pakistan who was charged with drug trafficking and consequently spent 13 years in death row in Indonesia reminds one of <a href="https://archive.nepalitimes.com/article/nation/nepalis-from-chitwan-to-chidoya,4110" target="_blank" rel="noopener">conviction and incarceration of Govinda Mainali</a>, who was falsely accused of the murder and robbery of a Japanese woman in Tokyo in 1997.Read also: <a href="https://archive.nepalitimes.com/article/nation/nepalis-from-chitwan-to-chidoya,4110" target="_blank" rel="noopener">From Chitwan to Chiyoda</a>, Kunda DixitIn a chapter appropriately titled ‘A Return to Nothingness’, narration of an everyday scene at Indian airports, of the body bags being unloaded is not unlike <a href="https://nepalitimes.atavist.com/nepalis-killed-in-the-line-of-duty" target="_blank" rel="noopener">Nepali migrants returning home in coffins at Kathmandu airport</a>. The migration of Sri Lankan farmers to the Gulf because of droughts caused by climate change is similar to that of <a href="https://nepalitimes.atavist.com/recharging-the-mountains-" target="_blank" rel="noopener">outmigration of people from the mid-hills of Nepal</a>. Bangladeshis overcharged and cheated of jobs in Singapore echo the plight of most <a href="https://www.nepalitimes.com/banner/kleptocrats-of-kathmandu-and-kualalampur/" target="_blank" rel="noopener">Nepali migrants in Malaysia</a>. Read also: <a href="https://www.nepalitimes.com/banner/kleptocrats-of-kathmandu-and-kualalampur/" target="_blank" rel="noopener">Kleptocrats of Kathmandu and Kuala Lumpur</a>, Ramu Sapkota and Alyaa Alhadjri<a href="https://nepalitimes.atavist.com/home-they-bring-the-workers-dead" target="_blank" rel="noopener">Home they bring workers dead</a>, Upasana Khadka Amidst the poignant stories of loss, there are tiny rays of hope. Following the three decades of war in Sri Lanka, women were forced to leave as domestic workers and toil hard in the Gulf, but discovered themselves in the process as individuals with rights and freedom.  What ties all of these stories together are the shared stories of aspiration and shattered dreams. Meanwhile all South Asian nations rely on the same destinations resulting in completion with each other, allowing employers to get away with little pay and exploitation in turn.Each chapter is a raw portrayal of a migrant life, and the book gives significant understanding of the poverty and social injustice in South Asia.The book is being launched at the Nepal Literature Festival in Pokhara during the weekend. <h2>Riyal revisited </h2> <figure><img width="1400" height="1024" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171148/636937659c7e80680e03fe33jpeg.jpg" alt=""><figcaption> </figcaption></figure>“The tidal wave of migration that began 20 years ago continues…” That is how Kesang Tseten begins his documentary sequel to the 2008 film <a href="https://www.imdb.com/title/tt1519643/" target="_blank" rel="noopener">In Search of the Riyal</a>. He tries to locate migrant workers he had filmed a decade ago, to find out what has become of them.Were their dreams realised? Did the Nepali workers in Qatar and UAE find what they were looking for? Were the intervening years kind to them? In The Riyalists, acclaimed film-maker Tseten (pictured, above) spends the first five minutes setting the stage for the journey ahead. We get to revisit young Nepalis on scaffolds whom we first met in the previous award-winning documentary.Ten years ago Dhanvir Jogi, a lanky lad from Terathum left behind his three-month-old son and started training at an institute in Kathmandu. He was diligent and hopeful, but worried about falling sick in the hot desert. In In Search of the Riyal Prem Bareily who often faced the stigma of being a Dalit back home in Dharan, did not shy away from his fears: “They might be talking about killing me but I wouldn’t know… I won’t understand their language.” Bhoj Darzi was fully aware of the risk he was putting himself into. He had heard of Nepalis returning home in coffins. Yet he took a loan in the hope of trading his job as a tailor in Jhapa for a more financially secure position in the Gulf. Shy and awkard, Nabin Rai, has a sad story with a happy ending. Tseten narrates: “It was the image of Nabin in his crisp white shirt and his newly married wife sporting a blue umbrella that remained etched in my mind from the earlier film.” But after two years in Qatar, Nabin came back to find that his wife took off with another man and abandoned his twin daughters. Nabin remarried and left for Dubai. Today, he is a foreman at an offshore gas rig and earns a good salary. He gets to visit home every three months where he is building a new home for his family.Dhanvir, who is with the same construction company in Qatar, has managed to acquire some land, get his sisters married, send his son to school, but missed out on his upbringing. “I was thin and young when I came,” he says on camera, “I’ll go back old.”Prem left Doha because he was not paid on time and mistreated by employers, and now works as a silversmith but faces stiff competition. He proudly shows the best worker certificate he received in Qatar and often regrets his decision to return. “I make good enough living here but there is no saving for future,” he rues.In Bhoj, there is no trace of a young man who once explained with wonder how the food tray inside planes worked. He was deported from Dubai for going on strike, framed by fellow workers. He left for Qatar next but returned shortly afterwards when his wife fell sick. His mother and wife run a local garment factory and he recently overtook his dead brother’s profitable piggery. He believes Nepalis can make it at home if they work hard. The four men are just a few of the hundreds of thousands of Nepalis toiling abroad. Their lives are mostly fascinating, not tragic. But what draws audience to these individuals is Tseten’s simple but compelling storytelling, his poignant narration, flawless direction interwoven with clips from ten years ago. Viewers will be struck by his compassion for less fortunate compatriots.There are moments of laughter, of camaraderie, of loss and farewells. Through it all, Tsenten is with us, uncovering men’s lives, sharing their grief and intact hopes, bringing us an intimate portrayal of Nepali migrants away and at home. The day this documentary will be launched, another 1,500 young Nepali men and women will fly off, forsaking their fields and families for the hopes of a better future. This film will help us understand why they leave despite real risks, and the need to create opportunities at home. The Riyalists Directed by Kesang Tseten Sunyata Film Productions, 2018 61 minutesSonia Awale

Sonia Awale

Shared stories, shattered dreams of South Asian migrant workers

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>.

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