<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/6369036c9c7e80680e037cc1jpeg.jpg" alt="" width="1500" height="1022"/><figcaption>Chuck McDougal's first pressure plate photography traps in which the tiger triggered its own picture</figcaption></figure>Encountering a tiger in the wild is a privilege not to be taken lightly, and an experience never forgotten. Words cannot do justice to this most magnificent of all creatures, but many have tried to capture the instincts triggered by its terrible beauty, the reality of our inherent human frailty when confronted with nature’s most evolved predator.Our consciousness is fully awakened by ‘Tiger tiger, burning bright’. Hairs rise, breath stills, time stops and the heart skips a beat as the sun striped shadows dissolve into the largest of the world’s cats, the sheer wonder of several hundred kilos of elegant muscle and striped intensity.Read also: <a href="https://www.nepalitimes.com/banner/how-many-tigers-in-nepal/" target="_blank" rel="noopener">How many tigers in Nepal?</a>, Kunda DixitFirst arriving at Tiger Tops in the Chitwan National Park, I was told: “You can live your entire life in the jungle without ever seeing a tiger.” The king of the jungle is essentially nocturnal, solitary and adept at avoiding people and encounters, its lone survival depending on self-sufficiency.For our guests, <a href="http://archive.nepalitimes.com/regular-columns/So-far-so-good/Tigerman-tiger,930" target="_blank" rel="noopener">Chuck McDougal</a> and his naturalists shortened the odds by reading the signals, identifying tracks and interpreting alarm calls – barking deer, grunting monkeys and coughing chital. Jungle excursions and elephant safaris took place early morning and late afternoon to maximise the probability.In the bad old days, a young male buffalo was tethered in the same spot every night, watched over by a shikari who ran back on swept paths to summon us from the lodge bar or dinner table. Barefoot, breathlessly silent and peering through the small windows of the grass machan, a tiger could be discerned crouched over its kill, bones crunching, illuminated by a rudimentary searchlight powered by an old car battery.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/6369036f9c7e80680e037cc2jpeg.jpg" alt="" width="990" height="1500"><figcaption> </figcaption></figure>Despite such contrivances, <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/More-trouble-in-Chitwan-National-Park,2956" target="_blank" rel="noopener">tiger sightings in the wild</a> are never certain. Even after we stopped baiting and depended on our naturalists skill, every year only one quarter of all Tiger Tops guests were fortunate enough to catch a precious glimpse of the planet’s largest cat.And for me, every time was a moment of magic and quiet respect that such splendour coexists on this earth.Originally protected as a sanctuary for Nepal’s Greater One-horned Rhinoceros (Rhinoceros unicornis), the fame of Chitwan was soon usurped by the tiger’s elusive glamour, the undisputed star of the show. Even the Latin name resonates with awe and mystery: Panthera tigris.Chitwan’s rich habitat, watered by the Raptiand Narayani rivers with alluvial grasslands, mixed riverine forest and the sal-covered Chure Hills, had long been set aside by ruling Ranas as prime hunting country, reserved as a refuge to impress a favoured few royals, viceroys and maharajahs. The Shah kings were required to prove their bravery with bagged tigers and perform obscure religious rites that included climbing inside the carcass of a slaughtered rhino.During Queen Elizabeth’s visit in 1961, for which Meghauli airstrip was carved out of the jungle, <a href="http://archive.nepalitimes.com/regular-columns/So-far-so-good/join-us-on-land-boris,869" target="_blank" rel="noopener">Boris Lisanevitch</a> catered an elaborate royal camp and 327 elephants were rallied for the game drive, Prince Philip famously refused to shoot. Yesterday’s hunters were evolving into today’s conservationists, and cameras were replacing guns.Throughout its range, Asia’s apex predator had become critically endangered due to a combination of loss of habitat, depletion of prey species, human conflict, poaching and hunting. South Asian tigers drastically dwindled to less than 2,000 from an estimated population of 40,000 at the turn of the century, plummeting to less than 3,500 from 100,000 worldwide.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/636903729c7e80680e037cc3jpeg.jpg" alt="" width="1500" height="1000">In response, the World Wildlife Fund (WWF) in 1973 launched Project Tiger throughout India, and the same year Chitwan’s 360-square-miles of undisturbed biodiversity were gazetted as Nepal’s first national park. Designated a natural World Heritage Site in 1984, and linked with adjacent reserves into the huge tiger conservation landscape of Chitwan-Parsa-Valmiki in 1998, Royal Chitwan National Park rapidly became renown as one of the best wildlife viewing experiences in Asia, especially for the increasingly rare Royal Bengal tiger.At <a href="http://archive.nepalitimes.com/article/nation/Nation-quality-control-in-tourism,471" target="_blank" rel="noopener">Tiger Tops</a>, a treetop lodge deep in tiger country since 1964, we were inevitably entwined and engrossed with its protection. An ideal base for wildlife research and filming, Chuck pioneered camera trapping, and helped the Smithsonian Institute’s radio tracking and long-term tiger monitoring.The government often asked help with logistics, and Jim Edwards’s former hunting skills came in handy when Hemanta Mishra and the warden requested assistance with tranquilising a man-eater – after three attacks anaberrant tiger, usually old or injured, would be sentenced to life in Kathmandu Zoo. As the elephants fanned out through the hot dry grass, mahouts shouted to drive the aging tigress towards the waiting dart-gun and I clung nervously to the ropes of my elephant’s gaddi behind a tense driver – we knew she had terrorised villagers from across the river straying into the jungle to collect grass and firewood.Nepal can be proud of its well-protected parks and successful conservation record, the envy of other tiger range countries with recovery of Nepal’s tigers well ahead of target. Nepali scientists have trained neighbours in scientific counting methods, we contributed sustainable tourism recommendations agreed by all tiger range countries (in Thimphu 2011), and naturalist guides have created conservation awareness with park visitors and celebrities.Actor Bob Hoskins got too close for comfort during a tiger documentary in Bardia, and <a href="https://www.leonardodicaprio.org/protecting-wild-tigers-in-nepal/" target="_blank" rel="noopener">Leonardo DiCaprio’s passion for tiger conservation</a> was first ignited at Tiger Tops Karnali, resulting in millions of dollars of WWF support.In the 2010 St Petersburg Declaration, 13 countries endorsed <a href="http://archive.nepalitimes.com/news.php?id=16820#.W2_ejWaB1TY" target="_blank" rel="noopener">the Global Tiger Recovery Plan</a> to double the number of tigers worldwide by 2022, the next Chinese Year of the Tiger. Nepal committed to expand its tiger population from 121 to about 250. By 2013 we had already achieved 63% of this goal with 198 tigers resident mainly in <a href="http://archive.nepalitimes.com/article/nation/habitat-destrcution-of-tiger-in-Tarai,3423" target="_blank" rel="noopener">Chitwan</a>, but also Bardia, Shuklaphanta, Parsa and Banke protected areas.No one should live in a world without wild tigers. We <a href="https://www.nepalitimes.com/banner/how-many-tigers-in-nepal/" target="_blank" rel="noopener">await the results of the Department of National Parks and Wildlife Conservation 2018 census</a>, but Nepal’s tigers remain a powerful tourism icon and a potent symbol of Nepal’s conservation success.The spelling of  Zbigniew Brzezinski in the caption has been corrected.

Lisa Choegyal

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Sun striped shadows

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/636903449c7e80680e037cb0jpeg.jpg" alt="" width="1400" height="885"/>After being hunted nearly to extinction, Nepal’s tiger numbers  surged in recent decades thanks to a <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Conservation-and-tourism-Chitwan-National-Park,2957" target="_blank" rel="noopener">successful conservation program</a>. But with Nepal committed to double its tiger numbers, there are questions about whether some of the country’s national parks are becoming too crowded.At the World Tiger Summit in 2010 in St Petersburg, 13 tiger range countries <a href="http://archive.nepalitimes.com/news.php?id=16820#.W2wXGtUzbIU" target="_blank" rel="noopener">committed to doubling tiger populations by 2022</a>. Nepali officials are confident the country’s total wild tiger population can be increased to 242 to reach that goal.“Nepal will be the only country to meet the target, and we will be releasing the total figures of the recent census soon,” said Man Bahadur Khadka, Director General of the Department of National Parks and Wildlife Conservation.Read also: <a href="https://www.nepalitimes.com/opinion/sun-striped-shadows/" target="_blank" rel="noopener">Sun striped shadows</a>, Lisa Choegyal The census result, synchronised with a count in India, was supposed to be announced on World Tiger Day on 29 July. But it was suddenly postponed, fuelling speculation the tiger count had decreased from the 2013 total of 198, with 120 of the tigers in <a href="http://archive.nepalitimes.com/article/nation/Nation-quality-control-in-tourism,471" target="_blank" rel="noopener">Chitwan</a> National Park.Some experts say the number could have gone down, because male tigers have been getting into fights over territory. Eleven tigers died in the past three years in Chitwan, five of them so far this year."Animals have been known to limit their own numbers by social mechanisms to avoid depleting prey in their natural habitat. Tigers are territorial, and space is limited to match natural population growth, so this could be what is happening in Chitwan," one international tiger expert told us.Read also: <a href="https://www.nepalitimes.com/banner/clouded-future-for-the-clouded-leopard/" target="_blank" rel="noopener">Clouded future for the Clouded Leopard</a>, Yadav GhimireyKhadka denied withholding the announcement because of the total was less than in 2013, saying enumerators were taking longer than expected to go through camera trap images. Every tiger has to be recognised by its stripe pattern, which are as individual as human fingerprints.“We have no need to hide the figures, we just want to be accurate with the count, and there are other factors like reconciling individual tigers with camera trap images from <a href="http://archive.nepalitimes.com/news.php?id=3126#.W2wXMNUzbIU" target="_blank" rel="noopener">India</a>,” Khadka added.However, delaying the announcement has raised fears Nepal may not increase the tiger total by 50 tigers in the next four years.“Someone, somewhere seems to want to cook the data. If so, this will hurt Nepal’s credibility in the global conservation movement that has so far praised Nepal’s effort to protect the tiger,” said the expert.Even if the target is met, however, tiger numbers could exceed the carrying capacity of protected areas, especially <a href="http://archive.nepalitimes.com/news.php?id=12200#.W2fawWaB1TY" target="_blank" rel="noopener">Chitwan</a>.Habitat destruction, human encroachment along wildlife corridors, new highways, transmission lines, irrigation canals and new  railroads <a href="http://archive.nepalitimes.com/article/nation/habitat-destrcution-of-tiger-in-Tarai,3423" target="_blank" rel="noopener">disturb the ecosystem of which the tiger is at the top of the food chain</a>.If Chitwan has reached saturation, tiger numbers may need to be boosted in Bardia, which has 50 tigers, but has area to sustain double that number. National parks in Banke and Parsa can also accommodate more tigers if the prey base is increased.There have always been questions about whether Nepal should have committed to doubling tiger numbers, when protected space is so limited and prey numbers are shrinking. When tiger territories overlap, there is fierce competition between individuals as well as with other predators, like leopards, for prey.An average tiger needs to make at least one kill of a deer-sized animal a week – that makes 12,000 kills per year. Chitwan has a lower large prey density than Bardia, and conservationists doubt if it is sufficient to sustain so many tigers.The tall grass along floodplains and oxbow lakes of the Narayani and Rapti Rivers are the ideal habitat of the tiger, but these are threatened by invasive mikania vines, disturbance due to mass tourism, and annual grass-burning. Chitwan’s wetlands, favourite watering holes for tigers, have also been going dry because of the dropping water table in the Inner Tarai due to over-extraction.The sharpest increase in tiger numbers in recent years has been in <a href="http://archive.nepalitimes.com/regular-columns/So-far-so-good/bardiya-beginnings-Lisa-Choegyal,1085" target="_blank" rel="noopener">Bardia </a> National Park, with the population going up from 18 in 2009 to 50, four years later. But even for Bardia to take more tigers, its grasslands and water courses need to be protected so prey can thrive.Man Bahadur Khadka says the government will now announce the official tiger tally on National Conservation Day on 23 September, adding: “We are not doctoring the numbers, we are just trying to be accurate as possible.”https://www.youtube.com/watch?v=HCtyrTtZRLQ<h2>WWF video</h2><h4>Tigerman Leonardo DiCaprio</h4>For the past decade, Hollywood actor <a href="https://www.imdb.com/name/nm0000138/" target="_blank" rel="noopener">Leonardo DiCaprio</a> has been <a href="https://www.leonardodicaprio.org/protecting-wild-tigers-in-nepal/" target="_blank" rel="noopener">supporting the WWF campaign</a> to double wild tiger numbers through his philanthropic organisation.<a href="http://www.wwfnepal.org/what_we_do/wildlife/tiger/tx2.cfm" target="_blank" rel="noopener">The initiative</a> funds tiger conservation in 13 tiger range countries, including Nepal, to boost the numbers of wild tigers to 6,000 by the next Year of the Tiger, 2022. Currently there are 3,900 tigers in the wild all over the world, up from 3,000 eight years ago, with most of the increase in Russia, India, Bhutan and Nepal.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/636903479c7e80680e037cb1jpeg.jpg" alt="" width="1400" height="931"><figcaption> </figcaption></figure>In Nepal, DiCaprio has donated nearly $7 million to WWF to boost tiger numbers. The resources were used to set up more than 400 community anti-poaching groups in areas bordering national parks and wildlife corridors, and to help reduce human-tiger conflict.DiCaprio visited <a href="http://archive.nepalitimes.com/regular-columns/So-far-so-good/bardiya-beginnings-Lisa-Choegyal,1085" target="_blank" rel="noopener">Bardia National Park</a> two years ago to inspect anti-poaching initiatives and to set up camera traps (right). He said after the visit: “I am proud of the work being done here. Tigers are some of the most vital and beloved animals on Earth. I am optimistic about what can be achieved when governments, communities, conservationists and private foundations like ours come together to tackle global challenges.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714118/6369034a9c7e80680e037cb2jpeg.jpg" alt="" width="850" height="541"><figcaption> </figcaption></figure>WWF has also been trying to re-invigorate the tiger grassland habitat by constructing and upgrading wetlands and waterholes, establishing firelines against forest fires, and installing solar-powered electric fences.Read also: <a href="http://archive.nepalitimes.com/article/nation/habitat-destrcution-of-tiger-in-Tarai,3423" target="_blank" rel="noopener">Allow tigers to roam more freely</a>, Om Astha Rai<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/Conservation-and-tourism-Chitwan-National-Park,2957" target="_blank" rel="noopener">Conservation and tourism</a> , Kristjan Edwards<a href="http://archive.nepalitimes.com/regular-columns/So-far-so-good/Tigerman-tiger,930" target="_blank" rel="noopener">Tigerman</a> , Lisa Choegyal<a href="https://www.nepalitimes.com/opinion/the-cantankerous-conservationist/" target="_blank" rel="noopener">The cantankerous conservationist</a> , Lisa Choegyal

Kunda Dixit

How many tigers in Nepal?

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