<figure><img width="1125" height="1500" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016118/636d14329c7e80680e0a9967jpeg.jpg" alt=""/><figcaption>Married at 15, Dhiru Bista has been either pregnant or lactating every year since. Of the 12 babies she gave birth to, only seven daughters are surviving. All photos: SRIJANA DEVKOTA</figcaption></figure>Dhiru Bista is only 35, but looks much older. She has had 12 pregnancies, and the last one was a stillbirth four months ago that nearly killed her due to a ruptured uterus and internal haemmorhage.The struggle of her hard life is etched on Bista’s face, as she recovers from her ordeal. But there she is, not resting in bed but spreading the rice and buckwheat harvest out to dry outside her small clay brick house in Babala village of remote Achham district. Her young daughters play nearby, some babysitting younger siblings.Because her husband is within earshot, she is reluctant to open up. Only when she is taken to a quiet corner, does she finally whisper: “If sharing my life’s story will help other Nepali women escape the same fate, let me tell you.” <figure><img width="1125" height="1500" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016118/636d14359c7e80680e0a9968jpeg.jpg" alt=""><figcaption> </figcaption></figure>Married at 15, Bista first got pregnant two years later. Every year since, she has been either pregnant or lactating. Of the 12 babies she has given birth to, only seven daughters are surviving. The oldest is now 16, the youngest 18 months. Two of her daughters died shortly after they were born, while the other two were aborted.“There was always pressure for a son and every time I gave birth to a daughter, people questioned my inability to give birth to a son. My husband does nothing to comfort me,” says Bista, who despite the hardships, has managed to send five of her girls to school.Here in the culturally conservative society of far-western Nepal where all development indicators like female literacy, maternal and infant mortality are much below the national average, Bista is just one among <a href="https://www.nepalitimes.com/here-now/who-will-save-nepals-poor-new-mothers/">many mothers with similar stories</a>.The preference for boys in the patriarchal culture means women are <a href="https://www.nepalitimes.com/banner/child-marriage-in-nepal-eloped-at-13-mother-by-17/">married young</a>, and are stigmatised every time they give birth to daughters. Because they are so young and undernourished at childbirth, many die at home or while being carried on stretchers to hospital.Read also:<a href="http://archive.nepalitimes.com/news.php?id=19596#.X4wTuNAzbIX">No time for school</a><a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/ending-child-marriage-in-Nepal,3864">Not just a social problem, but an economic one</a>, Elizabeth Hanna Satow <img width="1125" height="1500" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016118/636d14399c7e80680e0a9969jpeg.jpg" alt="">Most women in rural Nepal still have no access to essential antenatal care during their pregnancy, resulting in grave complications at childbirth.“Her husband will most likely remarry now that she can’t get pregnant,” says a neighbour matter-of-factly.After she started getting contractions in her latest pregnancy in August, the neighbours carried her downhill for half-an-hour before they found a bus that could take her to Bayalpata Hospital. She was critical by the time she arrived at emergency, with dangerously low blood pressure.Her uterus had ruptured, and she had severe internal bleeding. The baby was in a transverse position with one of its hands sticking out of the cervix, already dead.The surgery took four hours, but Bayalpata’s doctors managed to save Dhiru Bista’s life. Fearing complications, the hospital referred her to the ICU in the district hospital in Dadeldhura, seven hours away. She was discharged five days later.Surgeons at Bayalpata said that this was one of the toughest maternity cases they have operated on. There have been 320 deliveries since the Covid-19 induced lockdown in April 2020, and all of them have been performed free of cost.<a href="https://www.nepalitimes.com/banner/bayalpata-hospital-in-nepal-wins-global-design-award/">Bayalpata is run as a public-private partnership by Nyaya Health Nepal (NHN)</a> with support from the Far-West Province, Sanfebagar Muncipality, and international funding. <figure><img width="1243" height="820" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016118/636d143c9c7e80680e0a996ajpeg.jpg" alt=""><figcaption> </figcaption></figure>The <a href="https://www.nepalitimes.com/banner/how-the-climate-crisis-adds-to-child-marriage-in-nepal/">Covid-19 pandemic has added to the already precarious healthcare</a> in these rugged mountains, as expecting mothers were unable to travel to health posts for regular check-ups. Institutional deliveries also dropped dramatically, which led to an increase in mother and infant mortality throughout the province.There have been cases of women giving birth while working in the fields, cutting the baby’s umbilical cord with their sickle, adding to the risk of tetanus infection for both new mothers and babies.Nepal has made <a href="https://www.nepalitimes.com/opinion/newborn-deaths-and-a-vision-for-a-post-pandemic-nepal/">rapid strides</a> in saving the lives of mothers and babies. The national average for <a href="https://archive.nepalitimes.com/news.php?id=18359#.YZ9jmVVByJA">maternal mortality</a> rate has dropped from 539 per 100,000 live births 25 years ago to less than 186, in 2017. But maternal deaths are still high in districts like Achham, and even the national average has stagnated in the last three years.Read also:<a href="https://www.nepalitimes.com/latest/child-marriages-up-during-nepal-lockdown/">Child marriages up during lockdown</a>, Namrata Sharma<a href="https://www.nepalitimes.com/here-now/on-air-to-deter-child-marriage/">On air to deter child marriage</a>, Shapira Jha<a href="https://www.nepalitimes.com/opinion/too-young-to-marry/">Too young to marry</a>, karuna Onta <figure><img width="1500" height="1125" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016118/636d143f9c7e80680e0a996bjpeg.jpg" alt=""><figcaption> </figcaption></figure>Bista’s neighbour has two daughters, one of whom is handicapped. Her in-laws are already looking to remarry their son because they want a grandson. The daughter-in-law is not allowed to mingle with anyone, and works in the fields all day. There is no one to feed her children and her in-laws do not care for the girls – the youngest of whom, only one-and-half years old, weighs just five kg. Every household here has at least one male member working in India, and it is the money they send home that allows the subsistence farmers to survive. But when there is an illness or pregnancy in the family many cannot even afford the bus fare to go to hospital. Dhiru Bista would have surely lost her life if it had not been for the emergency surgery at Bayalpata Hospital. The facility has treated more than 1 million patients from seven surrounding districts in the Far-West and <a href="https://www.nepalitimes.com/banner/the-karnali/" target="_blank" rel="noopener noreferrer">Karnali</a> Provinces since it was set up 15 years ago, and many of them are maternity cases. Treatment and medicines are all free, and the hospital could be a model for other hospitals in rural Nepal. New investment to upgrade health facilities in remote settings is necessary to further reduce the maternal mortality rate in districts like these. Next comes education for girls, so that people are made aware of <a href="https://www.nepalitimes.com/here-now/can-nepal-end-child-marriage-by-2030/" target="_blank" rel="noopener noreferrer">the dangers of early marriage</a>. This would prevent <a href="https://www.nepalitimes.com/banner/no-conceivable-reason-for-unwanted-pregnancies/">unnecessary pregnancies</a>, thus saving lives. With elections approaching political parties are once more promising jobs and prosperity. But unless the lives of Nepali women and children are protected, there is no need for jobs.<a href="http://www.nyayahealthnepal.org/" target="_blank" style="letter-spacing: 0.01em;" rel="noopener noreferrer">Nyaya Health Nepal</a>

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Saving one Nepali mother at a time

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d122b9c7e80680e0a98c2jpeg.jpg" alt="" width="1500" height="1125"/><figcaption>Young mothers with their children in Muktikot where child marriage has become more prevalent as subsistence farmers cope with a succession of droughts and floods that have destroyed harvests. All photos: SONAM LAMA</figcaption></figure>“Mulai kyai thaa bhayaanai,” murmurs Birjaman, pain and fatigue etched on his wizened face. He has just made a steep 3-hour climb from his village of Muktikot to a pharmacy carrying his semi-conscious daughter-in-law, Reti.She has post-partum haemorrhage, and has not stopped bleeding. The clinic managed to save her life, but the <a href="https://www.nepalitimes.com/banner/child-marriage-in-nepal-eloped-at-13-mother-by-17/" target="_blank" rel="noopener noreferrer">young mother</a> lost her three-month foetus. Reti was married off at 16, and at 22 already has two children.The midwife says the miscarriage was due to weakness and heavy workload during pregnancy. Reti’s husband is working in India, and she has to do all the household work, raise the children, take care of the livestock, and fetch water herself.At the pharmacy, Gopal Singh says he sees cases like this often. This is the nearest medical stop for the predominantly Dalit village of Muktikot. He says, "This is nothing new around here, we get miscarriages like this daily. Many do not make it. Young mothers are not physically mature for childbearing and couples do not use contraceptives."Marriage before age 20 is punishable by law in Nepal but it is still common. Low female literacy, poverty, discrimination and cultural norms play a role, but <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/child-marriage-in-Nepal,3863" target="_blank" rel="noopener noreferrer">child marriage</a> has become more prevalent as of late, as subsistence farmers cope with a succession of droughts and floods that have destroyed harvests.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d122f9c7e80680e0a98c3jpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>Last winter, western Nepal suffered a 6-month drought that was followed by <a href="https://www.nepalitimes.com/banner/wildfires-ravage-nepal-mountains/" target="_blank" rel="noopener noreferrer">wildfires that raged for months</a>. Then, two weeks ago the region was hit by a freak post-monsoon storm that destroyed standing crops. Farmers had been hopeful for a good harvest because of plentiful rain this monsoon, but <a href="https://www.nepalitimes.com/latest/post-monsoon-rain-ruins-nepals-crops/" target="_blank" rel="noopener noreferrer">the unseasonal downpour</a> on 18-19 October unleashed landslides and floods and dashed their hopes.Scientists say global warming has added to the moisture content in the atmosphere, triggering <a href="https://www.nepalitimes.com/banner/himalayan-floods-a-sign-of-worse-to-come/" target="_blank" rel="noopener noreferrer">extreme weather</a> with erratic monsoons, frequent droughts and cloudbursts. Families in food-deficit western Nepal, already in a precarious situation, have been pushed over the edge.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12329c7e80680e0a98c4jpeg.jpg" alt="" width="800" height="600"><figcaption> </figcaption></figure>Already stricken by poverty and caste discrimination, the impact of climate crisis means that more parents now marry off their young daughters, who in turn end up risking their lives due to early pregnancy and poor diet."My father remarried after my mother died, and he married me off at 16 saying I would have a good life after marriage," recalls Reti.Read also: <a href="https://www.nepalitimes.com/banner/climate-change-is-a-disaster-in-the-nepal-himalaya/" target="_blank" rel="noopener noreferrer">Climate crisis is a disaster in the Nepal Himalaya</a>, Sonam Choekyi LamaSubi, 16, is also from the same village. She lost her new born baby two days after home delivery three months ago. She had not had a single pre-natal check-up, was too <a href="https://www.nepalitimes.com/banner/nepals-epidemic-of-hunger/" target="_blank" rel="noopener noreferrer">undernourished</a> to breast feed properly, and her baby eventually died of hunger.Subi herself bled for more than two weeks after the birth, and even though there were no men to carry her to the health post, she survived. She is still weak and anemic. Subi’s friend Suna is also 16 and expecting her first baby. Afraid that she may have the same complication, she walked five hours to a pharmacy to get iron tablets.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12349c7e80680e0a98c5jpeg.jpg" alt="" width="1500" height="994"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12389c7e80680e0a98c6jpeg.jpg" alt="" width="1500" height="994">Locals gathered in Muktikot. At least one member from each family is currently working in India.Suna’s mother Rauthi married her to a neighbour’s son because the family’s harvest failed after a long drought. She has seven children, all of whom have dropped out of school either to work in India, or to get married and raise their own children. The husbands of both Suna and Subi are also away in India, working to augment family income.Read also: <a href="https://www.nepalitimes.com/editorial/women-and-water/" target="_blank" rel="noopener noreferrer">Women and water</a>, EditorialMost families here have at least one member working in India, and the income they send home was what helped them survive when crops failed. But many Nepalis lost their jobs during the pandemic, so even this fallback option was not there for the past two years.“Life here is tough, and getting tougher. Early marriage is the norm, since it is easier to get our daughters married, so we do not have to feed them,” says Rauthi, two of whose seven children are handicapped and cannot go to school, or work.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d123b9c7e80680e0a98c7jpeg.jpg" alt="" width="1500" height="1125"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d123f9c7e80680e0a98c8jpeg.jpg" alt="" width="1500" height="1125">Children in Muktikot have to walk across steep terrain for three hours roundtrip everyday to go to school.Nearly 40% of girls in Nepal marry before they are 18, while some 14% give birth to their first child before their 19th birthday. Moreover, children of Dalit communities are at higher risk of being <a href="https://www.nepalitimes.com/opinion/too-young-to-marry/" target="_blank" rel="noopener noreferrer">married young</a> because of poverty, discrimination and limited access to resources.Although child marriage is less common than it used to be, it is still prevalent despite laws banning it. Now, the economic crisis due to the pandemic and the climate emergency has exacerbated the situation.This is <a href="https://www.nepalitimes.com/here-now/the-curse-of-being-new-mothers/" target="_blank" rel="noopener noreferrer">evident in Bajura</a>, a district in Nepal with one of the worst development indicators with more than 70% of people living below the poverty line, while Nepal’s national average is 26%.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12429c7e80680e0a98c9jpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>Frequent droughts and crop failures in recent years have further impoverished Bajura’s subsistence farmers. As it is, only 9% of the land in the mountainous district is arable, with a mere 1.42% with irrigation facility. Crop yields of barley, wheat, maize and millet harvests have dropped sharply in the past 10 years.Every year the district faces a shortage of 11,000 tonnes food grain, and a World Food Programme (WFP) bulletin classified 85% of the population being <a href="https://www.nepalitimes.com/latest/the-pandemic-of-hunger/" target="_blank" rel="noopener noreferrer">food insecure</a>. Muktikot is one of the villages classified as very vulnerable to deficient nutrition.Even in years with normal harvest, food grown here is enough only to feed families for three months in year. The result is out-migration for work, malnutrition, forced child marriage, high maternal and infant mortality.https://www.youtube.com/watch?v=e6ptI6TJqUgWith farmers so dependent on rain-fed agriculture, their fragile existence is even more precarious because of climate-related extreme weather. A 30-year precipitation data at the nearby Martadimet station shows that total annual rainfall has fallen, there is little winter snow, and even that tends to come with destructive storms.“Rainfall has always been unpredictable in these parts, but these days there is very little winter snow that we need for the spring marsi paddy and buckwheat,” says 65-year-old farmer Brija Bahadur Bam. “And when it does rain, it is so heavy that it washes away the crops.”This all adds up to <a href="https://archive.nepalitimes.com/article/nation/water-table-of-kathmandu-valley-falling-fast-recharge-to-replenish,4100" target="_blank" rel="noopener noreferrer">lower groundwater tables</a>, which means even perennial springs have gone dry. Indira Kandel of the Department of Hydrology and Meteorology says that the rain and snow is then not enough to replenish the aquifers.The link between drought and child marriage has been proven by research in India. Reetika Revathy Subramanian, a PhD student at the University of Cambridge, has studied how drought-induced migration in the caste-ridden Marathwada region of India has increased underage marriage.“The decision for a girl to marry gets shaped by a web of intersecting factors, including poverty, access to education, social pressure and norms, harassment and intimidation, which is further exacerbated by disaster,” she explains.In Nepal’s Bajura district, too, the <a href="https://www.nepalitimes.com/here-now/dalits-disasters-and-discrimination/" target="_blank" rel="noopener noreferrer">Dalit community is more vulnerable</a> to the impact of the climate crisis on agriculture than more privileged groups. “Child marriage is rampant here but it is more likely in families hit hard by food crises and with many children,” says Birban BK of the Nepal Climate Change Support Program (NCCSP).The answer lies in making irrigation available to farmers so they are not affected by erratic rainfall, which is why the NCCSP prioritised building irrigation canals and flood-prevention gabion walls in Bajura.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12469c7e80680e0a98cajpeg.jpg" alt="" width="1510" height="1000"><figcaption> </figcaption></figure>Muktikot got its name from Maoists guerrillas during the insurgency who wanted to show that the Dalit village had been liberated from caste discrimination. The war has been over for 16 years, but life is, if anything, worse for the Dalits here.Village officials and locals believe that the relocation of the entire community is the only way out. Plans are afoot for the rehabilitation of villagers to settlements up the mountains to an altitude of 2,500-3,000m where rainfall is more regular. They can grow cash crops like walnut and <a href="https://www.nepalitimes.com/banner/a-parliamentarians-apple-grove/" target="_blank" rel="noopener noreferrer">apple</a>, but will be needing help accessing the market.“These practices could be diversification of livelihoods and income sources through adopting climate-resilient cash crops, connecting farmers to the markets, promoting agro-forestry and use of bioengineering for infrastructure development,” says Monika Upadhyay of WFP Nepal.Even among Dalits, it is the women from the community who are even more affected by the climate crisis. The shortage of water <a href="http://archive.nepalitimes.com/article/nation/Recharging-the-mountains,3465" target="_blank" rel="noopener noreferrer">adds to their daily drudgery</a>, because they have to walk longer to reach springs that are still functioning.Says Radha Wagle of the Climate Change Management Division at the Ministry of Environment: “In Bajura and other districts, we need climate-resilient and gender-responsive plans because women are more adversely affected by socio-economic, geographical and climatic vulnerability.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12499c7e80680e0a98cbjpeg.jpg" alt="" width="1500" height="994"><figcaption> </figcaption></figure>Nepal aims to implement these measures at local levels by 2030, the same year the government has set to end <a href="https://www.nepalitimes.com/latest/nepal-child-marriages-spike-during-pandemic/" target="_blank" rel="noopener noreferrer">child marriage</a>. But given that the practice is still rampant, it is an ambitious target.Says Subramanian: “It is important to strengthen child marriage prevention groups, village-level committees to work closely with vulnerable families including women and girls in particular.”At nearby Radhamata Secondary School, only 13 of the 113 students in Grade 10 are unmarried. Manshova Buddha, 17, is one of them. She says: “With so many of my friends already married off by their parents, I also feel the pressure. But I am not going to give up on my dreams.”Read also: <a href="https://www.nepalitimes.com/opinion/educating-girls-for-climate-action/" target="_blank" rel="noopener noreferrer">Educating girls for climate action</a>, Helen GrantSome names have been changed.This report was supported by the Road to COP26 campaign implemented by the British Council and funded by UKAID.

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How the climate crisis adds to child marriage in Nepal

There were two Bhutans on display during Narendra Modi’s visit this month. The first: a trusted partner, modernising rapidly with Indian support, inaugurating hydroelectric projects, and signing healthcare deals. The second: a nation that <a href="https://www.fmreview.org/gazmere-bishwo/#:~:text=In%201990%2D91%2C%20about%20a,are%20therefore%20not%20Bhutanese%20citizens.">ethnically cleansed 17% of its population </a>and has never been held accountable.
Modi chose to see only the <a href="https://kuenselonline.com/news/pm-modi-concludes-bhutan-visit-with-prayers-for-peace-and-prosperity">first </a>during his <a href="https://economictimes.indiatimes.com/news/india/india-announces-rs-4000-cr-concessional-credit-line-to-fund-energy-projects-in-bhutan/articleshow/125253915.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">11-12 November visit</a>, granting $450 million in credit, offering birthday tributes to Fourth King Jigme Singye Wangchuk, and inaugurating another hydropower project.
New Delhi has opted for strategic silence on Bhutan’s systematic persecution of the Lhotshampas in the 1990s. The displaced remain scattered across the world and in refugee camps in Nepal, their property seized, their citizenship revoked.&nbsp;
Now, on that same contested land Bhutan is building the <a href="https://nepalitimes.com/here-now/small-bhutan-dreams-big">Gelephu Mindful City (GMC)</a>, a megaproject intended to <a href="https://kuenselonline.com/news/pm-modi-announces-inr-40-billion-credit-line-new-rail-links-and-land-for-bhutanese-temple-in-varanasi">connect directly to Indian infrastructure</a>. The victims are gone, and democratic India’s values remain conspicuously absent.&nbsp;
With no Lhotshampas left to challenge the official narrative and India unwilling to raise it, Bhutan continues to suppress dissent with impunity.&nbsp;
Earlier this year, social media influencer Raghu Pati Subedi was arrested on the Assam side of Gelephu after returning from a visit to relatives in India. His family members reportedly came under intense pressure, including threats of arrest, accusing them of hiding his whereabouts. After his arrest, he was transported to Thimphu and imprisoned.
This was not an isolated incident. It is part of systemic repression that first gained international attention in the 1990s, when over 100,000 Nepali-speaking Lhotshampa were systematically stripped of their citizenship and forcibly exiled. This mass expulsion, which human rights organisations have characterised as ethnic cleansing, created a decades-long refugee crisis that continues to define the regional political and human rights landscape.&nbsp;
EXODUS
The Lhotshampa crisis of the 1990s was not a spontaneous event but the culmination of years of state-led discrimination. Through a series of legislative acts, notably the 1985 Citizenship Act and the 1989 Driglam Namzha, the ‘One Nation, One People’ policy, the Bhutanese state systematically dismantled the rights of its Nepali-speaking citizens.&nbsp;
The use of the Nepali language was suppressed, the traditional dress of the ruling ethnic group was mandated, and citizenship was revoked en masse, rendering a significant portion of the population stateless in their own homeland.
The new manuscript I am editing has harrowing accounts by the authors of those atrocities. The parallels with what happened to Subedi recently are striking and troubling, showing that even after 35 years the regime has not changed its spots. The methods may have evolved, but the repression against dissidents remains disturbingly consistent.
This refugee exodus was an immense and unasked-for burden on Nepal. Despite being a country grappling with its own political instability and limited resources, Nepal accommodated them on humanitarian grounds. Nepal has consistently advocated for a durable solution centered on the refugees’ right to safe, voluntary, and dignified repatriation.
For years, it engaged in bilateral talks with Bhutan, culminating in a joint verification process. However, these efforts ultimately foundered on what Nepal described as ‘continued rigidity and non-implementation of the agreed decisions by the Bhutanese side’.
Nepal fulfilled its moral and humanitarian duty, but the international community largely failed to hold Bhutan accountable. Bhutan’s rulers deflected global attention with the masterful narrative of Gross National Happiness (GNH), while the grim reality in the refugee camps persisted.&nbsp;
Ultimately, with repatriation proving impossible, Nepal acquiesced to a third-country resettlement program led by a group of eight countries, including the United States, Canada, and Australia. From 2007 to 2016, more than 113,500 Bhutanese refugees were resettled in <a href="https://www.unhcr.org/media/nepal-factsheet">one of the largest group resettlement programmes globally</a>, though 6,365 remain in refugee camps in eastern Nepal.
While this solution provided a lifeline for thousands, it was a tragic capitulation to Bhutan’s ethnic homogenisation project. The refugees’ right to return to their homeland has been denied. It is a cautionary tale about the limits of international diplomacy in the face of state intransigence.
Bhutan’s global brand is one of its most successful exports. The <a href="https://www.gnhcentrebhutan.org/">Gross National Happiness </a>doctrine, which promotes holistic well-being over just economic growth, has captivated the Western imagination and policymakers. It offers a vision of a mindful, environmentally conscious, and peaceful Himalayan kingdom. This carefully cultivated image has historically aimed to shield Bhutan from the level of scrutiny applied to other nations with similar human rights records.
The GNH facade, however, cracks under the weight of documented evidence. The same kingdom that champions ‘happiness’ has, for decades, maintained a justice system that human rights groups allege relies on torture, coerced confessions, and draconian laws to silence opposition.
The 1992 National Security Act, with its vague definitions of ‘treasonable acts’ against the Tsa-Wa-Sum (King, Country, and People), has been a primary tool for suppressing political dissent, particularly from the Lhotshampa.
Overlooked by the international community and ignored by global powers including India, in responding robustly to the ethnic cleansing of the 1990s sent a clear message to Thimphu: such actions could be undertaken with impunity. The monarchy emerged unscathed, its reputation burnished rather than tarnished.&nbsp;
This historical impunity now echoes in the case of Raghu Pati Subedi and the <a href="https://www.cijnepal.org/new-list-of-political-prisoners-expected-to-set-off-discussion-on-bhutans-human-rights-record">continued imprisonment of dozens of political prisoners</a> of conscience. The global community’s reluctance to challenge the GNH narrative has, in effect, become a form of complicity.
The arrest and sentencing of a social media influencer demonstrates how old tactics have been adapted for the digital age. Subedi, 40, was a new kind of threat to the state-controlled narrative and he had to be made an example of.&nbsp;
As the founder and administrator of the popular Facebook page ‘The Don of Asia’, he bypassed traditional, state-influenced media to speak directly to about 78,000 followers. His content, informational and satirical videos on rural poverty, corruption, and the GMC project, was the kind of social media activism that was deemed intolerable.
Subedi was arrested in early 2025 and sentenced to 24 years in prison. The charges allegedly stemmed from Subedi’s social media criticism of the GMC, a flagship project of Nepal-born Bhutanese fifth King Jigme Khesar Namgyel Wangchuck.&nbsp;
For <a href="https://thenewamericansmag.com/2024/11/18/the-kings-gelephu-mindfulness-city/#:~:text=Ganga%20Lamitare%2C%20who%20owns%20four,ancestors%20in%20building%20the%20nation.">Bhutanese refugees like Gangaram Lamitare</a>, the GMC represents a bitter irony, a development rising on their confiscated ancestral lands.&nbsp;
Gangaram, who owns four acres where the GMC’s international airport is now under construction, says: “Many people from villages fled at night in 1990, leaving everything behind to escape oppression. Now, the Bhutanese king and ministers are spreading falsehoods worldwide, calling this land vacant, which actually belongs to those forced to leave the country.”&nbsp;
There are signs that international support that has benefited Bhutan may be waning. The United Nations has become increasingly vocal and last year the <a href="https://www.ohchr.org/sites/default/files/documents/issues/detention-wg/opinions/session101/a-hrc-wgad-60-2024-bhutan-advance-edited-ve.pdf">UN Working Group on Arbitrary Detention</a> said the detention of several Bhutanese political prisoners was arbitrary and illegal under international law.&nbsp;
In April 2025 from a group of six UN human rights experts raised grave concerns about the use of torture, denial of fair trials, and the ‘severe chilling effect’ of Bhutan’s legal framework on civic space. These developments owe much to the consistent advocacy of the Hague-based Global Campaign for the Release of Political Prisoners in Bhutan (GCRPPB) since its formation.
However, they also reflect broader shifts in international human rights scrutiny. This places Bhutan’s key international partners, particularly the European Union, in a critical position. Bhutan enjoys lucrative benefits under the EU’s ‘Everything but Arms’ trade scheme, which grants developing countries tariff-free access to the EU market contingent on respect for human rights.&nbsp;
The EU is also a significant provider of development aid to Bhutan which provides it with substantial leverage. In April 2025, members of the <a href="https://bsky.app/profile/saskiabricmont.bsky.social/post/3lmrn5mkmrs2q">European Parliament formally called on Bhutan</a> to release all political prisoners. This action signals a growing recognition that trade and partnership cannot be divorced from human rights obligations.&nbsp;
“Bhutan’s international partners and investors, including the EU, should make it clear that they expect Bhutan to comply with its human rights obligations and release them without further delay,” says Meenakshi Ganguly, of Human Rights Watch.&nbsp;
Bhutan stands at a crossroads. Its desire for deeper global economic integration is colliding with its unresolved history of human rights abuses. The international community now has a choice: either continue being charmed by the myth of a happy shangri-la or insist that the kingdom adheres to democratic values it professes to the world.&nbsp;
Nepal’s recent Gen-Z uprising offers a lesson to Bhutan. In September, when authorities attempted to ban 26 social media, Nepali youth took to the streets and, within hours, toppled the entire pro-establishment political apparatus. Their message was clear: in an age of digital connectivity and mass mobilisation, authoritarian tactics such as detaining social media influencers are both unjust and ultimately unsustainable.
This incident echoes the prophetic warnings of Devi Bhakta Lamitare, Bhutan’s first-generation democratic leader, who died in exile in India in 2022. In his seminal 1970 book
Dankindo Bhutan, Lamitare chronicled the systematic suppression of people’s rights and envisioned a path toward liberation.
Before his death, I worked with him to update and edit this work, which the Bhutan Media Society published posthumously in 2023. In a December 2020 interview I conducted for the book on the Ganga riverbank in Haridwar, Lamitare laid out a stark three-front offensive: political mobilisation from within India to awaken resistance inside Bhutan itself, relentless pressure on New Delhi to champion democracy, and a global ‘pamphlet war’ waged by resettled Bhutanese in the West.&nbsp;
Only through such sustained action, he argues, can Bhutanese citizens win the right to choose their own rulers, a principle India, the world’s largest democracy, should be championing, not abandoning.
Binod Dhungel is the Nepal correspondent for Reporters Without Borders.
<a href="http://linkedin.com/in/dhungelbinod" target="_blank">linkedin.com/in/dhungelbinod</a>, @BinodDhungel

Bhutan imprisons social media influencer

The COP30 climate summit in Brazil ended this week <a href="https://nepalitimes.com/opinion/cop30-to-cop31">without tangible commitment</a> from countries to reduce fossil fuel emissions. Its impact will be felt halfway around the planet here in Mustang which is already seeing weather extremes.&nbsp; Geographically, Mustang is on the Tibetan Plateau, north of the main Himalayan chain. It is in the rainshadow, and a high altitude desert. Winter snow has failed for eight of the past ten years, unseasonal blizzards, and frequent glacial collapse leading to floods. The Kali Gandaki Corridor follows one of the deepest gorges in the world between Annapurna and Dhaulagiri, the world’s seventh and tenth highest peaks. Lush pine forests cover the southern flanks of these mountains, but within a few kilometers the vegetation undergoes a dramatic change to a landscape of red, brown and grey cliffs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f.jpg" data-media-id="editor_1" data-image-id="20251129021144_c66ade5e32d20530003abba893869426d75b42d10e4725c28361d738b402721f" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It gets more arid the more north you go. Snow and rain in Upper Mustang used to fall mostly in winter, but now there are cloudbursts and blizzards at other times of the year.&nbsp; In the ancient walled city of Lo Manthang, elderly men have gathered at a local tea shop to drink the salted butter tea. Some sip home-made liquor infused with medicinal herbs.&nbsp; The sun has set, the temperature plummets, and the wind howls outside. Everyone agrees it does not snow like it used to any more. Read also: <a href="https://nepalitimes.com/here-now/comings-and-goings-in-mustang">Comings and goings in Mustang</a>, Shrijan Pandey  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161.jpg" data-media-id="editor_3" data-image-id="20251129021144_ffaabf00a533984cadf160b2e56734cddb6f64d1a660401417d2982a3818f161" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The flat mud roofs are leaking because rain is now falling where there used to be snow.</figcaption> </figure>  “The weather has changed drastically over the years,” says Lopsang Tsomfel Bista, Chair of the Lo Dekhar Municipality. “It doesn’t snow in winter, and it falls when it is not supposed to.”&nbsp; Lack of snow means that in spring, the pastures where nomadic herders graze their yaks and goats do not have enough grass. Previously, winter snow on the meadows would seep slowly into the soil with the spring thaw, bringing out fresh grass shoots. &nbsp; In recent years, even if there is winter precipitation, it falls as rain. The soil is not able to soak in rain as efficiently, and torrential downpours increase the risk of soil erosion and floods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1.jpg" data-media-id="editor_4" data-image-id="20251129021144_93ca69bec63577c5f6cbff8db809c11bce2d8fe01469d3374c20a6f20a7c93f1" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  “There used to be up to 1,500 mountain goats in every village, but now they have stopped keeping livestock,” says Bista. This is due to lack of grass and new lowland diseases moving up the mountains. Mustang has lost 28% of its population between the census in 2011 and 2021, and outmigration also means there are fewer people left to carry on a pastoral lifestyle.&nbsp; “Herders have asked for vet services in their communities because there are new insect-borne diseases,” says Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation. Read also: <a href="https://nepalitimes.com/opinion/winds-of-change-sweep-mustang">Winds of change sweep Mustang</a>, Jagannath Adhikari  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26.jpg" data-media-id="editor_6" data-image-id="20251129021144_902593732af83db5792128be5a3bd87c00e0c62ff894afa4c98bffde64e96d26" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> <figcaption>The mud walls of monasteries and homes are crumbling because of unseasonal rainfall. </figcaption> </figure>  Mustang is flanked to the east and west by mountains that rise up to 6,000m, and glaciers on their slopes are melting fast, turning into lakes. With the rising temperature, the risk of Glacier Lakes Outburst Floods (GLOFs) has also risen.&nbsp; At the rate global average temperatures are rising, scientists say that the Himalaya will lose up to two-thirds of the remaining ice caps. When glaciers melt, it not just raises the risk from GLOFs but also affects water supply downstream.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f.jpg" data-media-id="editor_7" data-image-id="2025112903114_1a6af68965ded5f23897a623bec2e2bed0da4c6663f0af5b5bf79883f2a11c9f" data-rendition-name="original" width="1022" height="767" loading="lazy" alt="Mustang map NT"> </figure>  FLOODS Ringzin Sangbo Gurung in Chumjung village recalls the devastation caused by a GLOF on 8 July this year that swept away a newly inaugurated bridge. The floodplain is now strewn with boulders and sand brought down by the flood which caused damage worth Rs28 million. The flood also damaged the irrigation canals that feed riverside farms where locals grew potato, buckwheat, millet and spinach. Nyima Wangmo Gurung runs a homestay in Nyamdok village, and says: “We don’t have water when we need it. And there is too much when we don’t need it.”&nbsp; Read Also: <a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">Mustang forced to adapt to climate c</a><a href="https://www.nepalitimes.com/banner/mustang-forced-to-adapt-to-climate-crisis">risis</a>, Ronan Wallace and Yungdrung Tsewang Gurung  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2.jpg" data-media-id="editor_10" data-image-id="20251129021144_7ae98274ea20e910311ec4431ba0aa3ecd9fe92caaed029a33c185198b33d0d2" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  With warming temperatures, farmers in Mustang are growing lowland vegetables which was not possible before in plastic greenhouses. The farms depended on snowmelt in spring to irrigate their fields, but there is less snow to melt in past years. “The last heavy snowfall in winter was about eight years ago, since then we have got little or no snow,” says Tashi Norbu Gurung, Chair of Lo Manthang Rural Municipality. “This affects farmers during the April planting season.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b.jpg" data-media-id="editor_11" data-image-id="20251129021144_010e09f4e9335f39c62f4d6027489c86423b3d10ddfb83558820f6a7a56a477b" data-rendition-name="original" width="1000" height="1500" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  It is not just lack of snowfall that is a problem. Springs have gone dry, and some villages like Dhey have been forced to relocate because life became &nbsp;impossible without water.&nbsp; Villagers of Samjung also <a href="https://nepalitimes.com/news/climate-migration-is-already-happening">migrated</a> to Namashung, near a river when water sources dried up. But now the new settlements are threatened by GLOFs. Karma Gurung, who runs a lodge in Choser, remembers the big flood of 35 years ago which swept away farms and covered them with debris. There have been more frequent, but destructive floods since then in Kagbeni, Lubra and other valleys. Read also: <a href="https://www.nepalitimes.com/banner/mixed-blessings-in-mustang">Mixed blessings in Mustang</a>, Mukesh Pokhrel  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd.jpg" data-media-id="editor_14" data-image-id="20251129021144_da2212bc1ad49c17d126e24bbd92d3fca18e3e6bdd58ac61df14c962deb2edcd" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  MUD WALLS Because snowfall has been replaced by rain, Mustang’s traditional mud-wall architecture is now in <a href="https://nepalitimes.com/here-now/leaky-roofs-on-the-roof-of-the-world">danger of collapsing</a>. The homes here are closely packed, have flat roofs stacked with juniper branches for firewood. With rain in place of snow, the roofs now leak.&nbsp; Women in Thinkar village say their walls are falling apart. Some homes have collapsed, and families forced to move out. Yangchen Dolker Gurung of the Lo Gyalpo Jigme Foundation says locals need plastic sheets, cement walls and corrugated roofs to cope with the rain.&nbsp; But this would mean that Mustang’s villages would lose their traditional architecture style.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d.jpg" data-media-id="editor_16" data-image-id="20251129021144_59c475cdde3bee8d03ed05e9038c0cf36f1acd31e3d3596f145469e5b4404d9d" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The ancient 1.5m thick mud walls around Lo Manthang built 600 years ago, the king’s palace, and monasteries are also at risk. “Changes in precipitation patterns, altering the intensity, frequency, and timing of rainfall and snowfall, have damaged traditional and cultural infrastructure, particularly mud-built private and public buildings as well as religious and heritage sites,” explains Bhawani Pandey at the Lo Gyalpo Jigme Foundation. “With the rain, and because the monuments and stupas are made from mud, they have eroded. There is leakage, and the monuments are in a dilapidated condition.” Read also: <a href="https://www.nepalitimes.com/banner/climate-smarter-himalayan-infrastructure/" target="_blank">Climate-smarter Himalayan infrastructure</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6.jpg" data-media-id="editor_18" data-image-id="20251129021144_dfc8c93a0a8619893f0d97076d1f9cbba3818e1cc716a903ff9908dbb8939ef6" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Too little snow, too much rain NT"> </figure>  The Lo Manthang Rural Municipality along with Lo Gyalpo Jigme Foundation, are working on a Local Adaptation Plan of Action and the Disaster Preparedness and Response Plan, which the Nepal government has made mandatory for every municipality. “We took a bottom-up approach and collected data from each village, they know best the impact of climate change and what their needs are,” says Yangchen Gurung. To address the hazards of climate change, local communities and municipalities are adapting through their own resources, without waiting for outside help to improve water conservation, control soil erosion and protect from flood.&nbsp; Says Pandey, “We are returning to conserving traditional drought-resistant crop varieties, organic pest and disease control, cultivating high-value crops and fruits, and practicing sustainable pasture management through rotational grazing. We have also developed new building codes for homes that incorporate water-resistant coating for mud roofs and walls.” &nbsp; Additional Reporting by Tashi Wangyal. &nbsp;

Too little snow, too much rain

We often see ourselves reflected in the other. For someone who grew up in Kathmandu Valley in the eighties and nineties, this maxim comes alive with an even greater force. Nepal’s media ecosystem was dismal, the school curriculum was narrow and did not provide opportunities for creative expression. Perhaps that is why I became obsessed with MTV videos and Bollywood films. I saw my developing self reflected in these story-lines and razzmatazz. When the media and education system do not engage the public and reflect myriad interests, aspirations and lifestyles of the population, citizens get detached and disconnected from their roots. I left for America for further studies, and was somewhat determined to never return to Nepal. It was a country full of potholes and black-outs. But foreigners have been fascinated with our country for decades. In the early 19th century, Francis Buchanan-Hamilton led a pioneering expedition and documented more than a thousand species of plants native to the region. Almost a century later, in 1905, Frenchman Sylvan Levi published ‘the first attempt to produce a comprehensive study of Nepal’, drawing on not just indigenous but available Chinese and European sources as well. After Nepal opened up in the 1950s, different kinds of foreigners have traveled here -- most notably, cold-war era spies disguised as diplomats, and later came the hippies. I returned to Nepal in 2013 and was primarily struck by two major demographics - the artists and the expats. Energised by the recent revolution, the creatives were making vibrant, powerful works. The expats, on the other hand, demonstrated a different way to navigate life in Kathmandu Valley. These two groups of people re-introduced Nepal to me and I began seeing my country and my hometown with a renewed perspective. Which is why one particular image from Giovanna Caruso’s ongoing show at the <a href="https://www.instagram.com/thekalasalon/?hl=en" target="_blank">Kalā</a><a href="https://www.instagram.com/thekalasalon/?hl=en" target="_blank"> Salon</a> curated by <a href="https://nepalitimes.com/review/facades-and-flowers-from-nepal-to-italy" target="_blank">Sophia L Pandé</a> instantly caught my attention -- rather, it called out to me, as if it was composed for me, framing a key moment from my own life. Its title is, coincidentally, 2013. Like most of her other works, the pen-and-ink drawing is punctuated by an explosion of watercolour: a woman standing confidently in front of a Newa-style house, a leg arched up, as if she is fixing a strap around an ankle before stepping out on an adventure. The watercolour depicts a rainbow streaming out of a pot through a second-floor window. The rest of the details are rendered in realism – clusters of garlic and onion hanging to dry from the rafters, and further down a stack of corn. There are towels drying, even an old water pump.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251201121216_f440de5b5402fe0877dc46d94f41647bd46b00035b61241d46fc9f7ffbd87d0f.jpg" data-media-id="editor_3" data-image-id="20251201121216_f440de5b5402fe0877dc46d94f41647bd46b00035b61241d46fc9f7ffbd87d0f" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="art review Kala Salon"> </figure>  When I walked over to this artwork with Caruso, she chuckled, “Ah, this work is a celebration of my 30 years in Nepal.” It was while trying to calm a restless group of students during her teaching days in Italy that Caruso first came across an iconic image of Kathmandu Darbar Square. She had found an old box of slides and while projecting images from the Himalaya to engage her students, the artist was determined to travel to Nepal. The first flat she rented was close to the square and the view from her rooftop was the same as the one she had encountered inside her classroom. She has been traveling to Nepal every year since. Some of her favourite drawings depict Khokana in morning fog. From 1993-2006, she drew murals at Ram Mandir and Pashupatinath, asking sadhus to guide her and correct her depictions. Caruso received a classical education, which means she was trained to focus on perspective and geometry while capturing mainly portraits and still lives. She is influenced by M C Escher and his explorations of mathematics and symmetry. No wonder she finds the Darbar Square architecture so compelling. She also names as inspiration Gustave Dore, whose style is different from Escher’s and I can see how she has fused these influences in her body of work: Escher’s austerity complimented and slightly dislodged by Dore’s comics and caricatures. “Before starting, the painting needs to be complete in my mind,” she explains as we pass a series of portraits titled Saraswati, Lakshmi, Kali Dancing, and Durga dominated by a roaring tiger. “These are all real people, I ask my friends and family members to sit for me.” The Kali in the drawing has the artist’s fiery copper red hair and she is dancing, surrounded by various men with flowing hair. The artist seems to have experimented here, drawing the revelers from above, and indulging in playful abandon. Depictions of Nepal are often in danger of being exoticised. But Caruso is familiar with her subjects, knows our alleys and temples intimately. Her colours and compositions are passionate and dense. In an essay, Anirudh S Chari writes the artist’s work is splashed with rapturous energy and most drawings have a carnivalesque element. ‘Kali Dancing’ illustrates this idea perfectly in that she has turned Kali’s usual fearsome portrayal on its head by depicting and embracing another feminine principle - the capacity to celebrate and create joy. Apart from drawing inspiration from Hindu goddesses and Nepal’s multi-colored rituals, Caruso has also drawn the Sumerian Ianna and Lillith and the Egyptian Nut. She enjoys drawing Nataraja, and says it is because “Shiva is a good husband”. We stand another painting titled 100 Days a Lion. “There is a saying in Italian, Better one day as a lion than a hundred days as a sheep, but I thought why not 100 Days a Lion?” This sentiment captures this nomadic artist’s spirit spanning four decades, in which she has captured urban energy as well as the sacred imagery of ‘life diaries on canvas’. From Venezia to Kathmandu and Journeys In Between Giovanna Caruso The Kalā Salon Chhaya Centre Mall, Thamel Till 12 December 10am- 8pm

Looking at Nepal from Venice

The September protests and worry about what is in store for Nepal in 2026 have added more uncertainty to a <a href="https://nepalitimes.com/here-now/nepal-needs-to-use-its-money-better">struggling economy</a>. Real estate transactions are stagnant, industries are operating below capacity because of declining domestic demand, the construction sector is slack, and investors are in wait-and-watch mode. In contrast, total bank deposits increased by Rs124 billion in the month before mid-October to Rs7.4 trillion. Official remittance inflows hit a record $13 billion in the past year. Nepal’s banks are flush with cash, with nowhere to put it. &nbsp; “The economy has flatlined. Non-performing assets are up, and real estate is at a standstill,” said Ashoke SJB Rana, CEO of Himalayan Bank.“There is excess liquidity in the market, with not many places to invest.” The main reason seems to be that both <a href="https://nepalitimes.com/here-now/relocate-reallocate-recover">domestic and foreign investors were spooked</a> by the targeted violence of 9 September, and are so worried about the runup to elections in March that they are holding on to their wallets. Not just businesses, the political uncertainty is keeping individuals &nbsp;from making big financial decisions.&nbsp; Sujeev Shakya, author of the <a href="https://nepalitimes.com/review/retrofitting-nepal-for-future-shocks">newly-released book Nepal 2043</a>, notes that the current doldrum is due to Nepalis playing it safe with their money. &nbsp; “People are holding on to their assets, and keeping their cash,” he says. “They are not investing in real estate, and avoiding buying gold because it is so volatile.”&nbsp; One sector in which banks have a lot of exposure is hydroelectricity, but even here recent floods have shown that this investment is <a href="https://nepalitimes.com/here-now/global-warning-bell-in-belem">increasingly at risk from climate breakdown</a>.&nbsp; Nabil Bank, with its focus on sustainable banking, for instance, has financed 56 hydropower projects with an installed capacity of 3,000MW.&nbsp; Says Nabil CEO Manoj Kumar Gyawali: “We cannot ignore unpredictable rainfall, increased glacier melt, more frequent glacier lake outburst floods, and landslides. These risks mean that while hydropower is essential, Nepal must diversify its energy mix." &nbsp;&nbsp; An open secret in the banking sector is that much of the liquidity is supected laundered money. Banks also have close ownership links with big businesses, and this means that even with a slow economy, banks lend to themselves or to each other to keep transaction volumes up.&nbsp; This is one reason for a high default rate. In the first three months of this fiscal year, 4.86% of bank loans were non-performing, meaning one out of about every 20 borrowers had defaulted. A year ago, this figure was 4.04%. Banks are therefore reluctant to lend, dampening the overall investment climate. &nbsp; Ironically, the high default rate is keeping mainstream newspapers in Nepal afloat at a time when the media business is also in crisis. Even as they suffer from a massive drop in advertising revenue, most daily newspapers often add pages to fit notices to borrowers about repayment, or announcements of bank auctions of collateral property. “While banks may be making a much smaller percentage of income compared to a few decades ago, they are still making a profit,” notes Shakya. “And so they are actually quite happy to be in this low-risk situation. Banks are conservative organisations after all.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065.jpg" data-media-id="editor_4" data-image-id="20251128041136_b33dd18d7ce221e273bd18d8a5c4ba4c9196f762b95b87fd24c60df6c2426065" data-rendition-name="original" width="1500" height="1022" loading="lazy" alt="Banks"> <figcaption>Illustration: BHANU BHATTARAI / NEPALI TIMES ARCHIVE</figcaption> </figure>  Among the most striking videos of the September protests that was shared globally by tens of millions of people was the Hilton and Hyatt hotels and the Ncell building burning. That recognisable international brands were targeted did not just cause huge losses to owners, but also damaged Nepal’s overall investment climate. Looting Bhat-Bhateni and homes of businessmen also sent a negative message, spurring capital flight.&nbsp; “That was very bad optics for potential investors, you simply worry about the security of your investment when you see things like that,” says Himalayan Bank CEO Ashoke SJB Rana.&nbsp; Nepal will graduate to Middle Income Country status next year, and donors are set to move from aid to private investment. While this could reduce misuse of money, it could dry up grants and soft loans to the health and education sectors.&nbsp; But the harm may go deeper than just the aftermath of the September events. The recent<a href="https://nepalitimes.com/news/double-trouble-with-taxes"> double taxation issue</a> involving the Dolma Impact Fund, and an earlier controversy over Ncell’s capital gains tax have also put Nepal’s business climate in negative spotlight internationally.&nbsp; The banking sector is firmly on the side of investors. Says Ashoke Rana at Himalayan Bank: “This is a tax regime, it is absurd to order the payment of these taxes retrospectively. When investors see that the rules of the game can change arbitrarily, they won’t really want to put their money here. ” &nbsp; One of the positive changes in the ways Nepalis are using money is digital transactions through QR codes and mobile banking. With smartphones making up 70% of all mobile phones, QR transactions are easy and have become a part of daily life. ONLINE BANKING&nbsp; Most businesses and ride shares have this feature on board, and people do not need to carry a lot of cash or multiple bank cards. But as digital payments become the norm, the days of free transactions may be coming to an end.&nbsp; “Right now these transactions are free for the most part. This is a subsidy by the banks, because of course, it does cost something to make sure the payments go through,” says Rana at Himalayan Bank. “However, as income decreases, banks may have to look for ways to make money, so they may charge small percentages on each QR transaction.”&nbsp; Rapid digitisation has changed not only how customers use money, but also how banks think about their offices. Himalayan Bank’s new Thamel branch, for example, has cancelled plans to redesign the office for 20 tellers.&nbsp; “We realised that people were able to do so much of what they wanted digitally that we plan to have only four tellers,” says Rana.&nbsp; But cutting down on facilities and staff has not always made for a better customer experience at some bank branches.&nbsp; Economist Sujeev Shakya conducts ghost customer experience checks for banks which involves decoys entering banks to evaluate what it is like for somebody to set up a bank account.&nbsp; The stealth missions found that standards of service have regressed, with banks having a working environment reminiscent of government offices.&nbsp; Shakya points out that the general experience of going to the bank should be much better. “Sometimes it’s a knowledge issue -- banks may try to ask for non-disclosure contracts even when they don’t know why they want them,” he says.&nbsp; Despite digitisation, many banks still require paper-based forms and documents. Bankers and customers alike note that it feels archaic, almost absurd, to have to carry multiple copies of documents, sometimes only in Nepali lokta paper, across several family members and fill out what seems to be the same form over and over even though digital files exist. That could soon be changing as well. As more and more Nepalis adopt the National ID, banks have adopted pilot programs that use it to create bank accounts, replacing the myriad documents that customers had to previously present to officials, making all banking transactions more efficient and less of a hassle for the customer.&nbsp; DIGITAL SECURITY As Nepalis move their cash online, digital infrastructure needs to become more secure as well.&nbsp; Bankers spend quite a lot to make sure necessary digital security infrastructure is in place, but some banks could be using pirated software which are not trustworthy.&nbsp; There has to be better regulatory oversight to prevent phishing and fraud as online payments and digital banking spread across Nepal.&nbsp; Banks must also be innovative and ambitious. Says Shakya: “Nowhere else in South Asia are bank loans such a high ratio of the nation’s GDP. &nbsp;This actually points to a well-developed financial system and we have to take advantage of it."&nbsp; Shakya also notes that many bank executives in foreign countries, like Myanmar are actually Nepali, and that banks from Nepal could use their staff and know-how to partner with or acquire banks overseas.&nbsp; While these innovations are all welcome, it is unclear how Nepal's banking sector can jumpstart economic activity in the country. Nepal’s political future looks uncertain and stability is not a guarantee.&nbsp; In the face of continuing progress in hydro electricity and the IT sector seems to be the way forward to stimulate the economy.&nbsp; The GenZ movement was a wakeup call also to financial institutions and the need for greater transparency. Nabil Bank CEO Manoj Kumar Gyawali says the September protests sent a clear message that young Nepalis want an end to corruption, good governance, and real opportunities at home: "The banking sector has a &nbsp;responsibility to direct more lending toward the real economy, sectors that create jobs, build productivity, and strengthen long-term growth," he says.&nbsp; Despite a subdued investment climate, Gyawali is optimistic. "I do see early signs of improvement. Lower interest rates are beginning to restore public and business confidence. Rising remittances provide a safety net and fresh investment capacity for households," he says. "If government capital expenditure continues to improve, it will boost private sector activity."&nbsp;

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