A Nepal-based <a href="https://nepalitimes.com/opinion/a-few-good-agents" target="_blank">ethical</a> migrant worker recruiter has created waves internationally to be only the second company worldwide to be certified recently under the International Recruitment Integrity System (<a href="https://iris.iom.int/" target="_blank">IRIS</a>). International Manpower Recruitment (IMR) was recognized for its high ethical recruitment standards. &nbsp;This comes as Nepal reels from news involving the misuse of <a href="https://nepalitimes.com/opinion/labour-mobility/revisiting-visit-visas" target="_blank">visit visas</a> by immigration officials, recruitment related <a href="https://nepalitimes.com/opinion/free-visa-free-ticket-policy-in-limbo" target="_blank">corruption</a>, <a href="https://nepalitimes.com/opinion/migrating-for-domestic-work" target="_blank">bans</a>, and vested interest groups which have overshadowed the role of migration as a powerful <a href="https://nepalitimes.com/opinion/migration-is-development" target="_blank">development</a> tool.&nbsp; IRIS is an initiative of the International Organization for Migration (IOM) to promote ethical recruitment of migrant workers. It is a bit like fair trade certifications for consumer products like coffee, tea or chocolate that assure conscious consumers that they are not complicit in labor abuses, even if it means having to pay a premium. Certifications like IRIS give responsible companies wanting to ethically hire Nepali workers more confidence that workers will not be cheated. It is remarkable that a <a href="https://nepalitimes.com/opinion/fee-free-migration-is-possible" target="_blank">Nepali recruiter</a> has been recognised as a global pioneer in obtaining this certification after a rigorous audit process. Only one other recruiter in Singapore has received this global certification so far, and a Kenyan company got it after Nepal’s IMR. All this is happening when the international labour market is <a href="https://nepalitimes.com/opinion/free-visa-free-ticket-policy-in-limbo" target="_blank">not yet ready</a> for ethical recruitment. Many employers still do not pay for the costs and fees that workers incur, unhealthy competition among recruiters persists, and individual brokers prey on workers. &nbsp;Complying with ethical practices therefore are not always generous, and can even threaten business sustainability of companies. IMR in Nepal has been one of the biggest recruiters in some years despite being ethical, but there have also been periods when the numbers have gone down to zero. The company was just recovering from Covid-19 impact when I first covered its work in this <a href="https://nepalitimes.com/opinion/a-few-good-agents" target="_blank">column</a> in 2021 titled ‘A Few Good Agents’. Just before the lockdowns IMR had lost business because Nepal <a href="https://nepalitimes.com/here-now/nepal-and-malaysia-rewrite-rules-for-migrant-labour" target="_blank">banned</a> the emigration of Nepalis to Malaysia, its primary destination market. Now, Malaysia has again <a href="https://nepalitimes.com/opinion/free-visa-free-ticket-policy-in-limbo" target="_blank">stopped</a> the intake of foreign workers. IMR has faced three big episodes of business downturn after it decided to become fully ethical in 2018. During such times when they sent very few workers—59 in 2019, 166 in 2020, and 75 in 2025 so far—traditional recruitment in which workers pay fees is always convenient and a profitable fall back option. There are many hiring companies looking for Nepali workers, but do not abide by the ‘employer pays’ principle. And many workers are desperate to migrate overseas even if it means by paying unjustifiably high recruitment fees.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250611080648_dc1079727ad0567a9cf457e8014e325b08cb54766bdf6f145021168237824985.jpg" data-media-id="editor_11" data-image-id="20250611080648_dc1079727ad0567a9cf457e8014e325b08cb54766bdf6f145021168237824985" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="Valuing moral migration NT"> </figure>  But ethical recruiters cannot fold to the pressures of business downturns, no matter how easy or tempting. To stay undeterred, what is required is commitment to ethical standards. The IRIS certification to Nepal’s IMR is a reward for precisely that: commitment. But how will this well-vetted stamp translate to jobs for Nepali workers? In theory, we can be hopeful that certifications like IRIS can help responsible hiring companies separate the wheat from the chaff since the industry is full of unethical players globally.&nbsp; It also may not always be practically feasible for employers to conduct their own due diligence as it can be time consuming, costly, and they may not be familiar with the Nepal market. The cost of not doing proper due diligence can also be damning for the reputation conscious brands.&nbsp; Exports from several Malaysian manufacturing companies, for example, were <a href="https://nepalitimes.com/news/us-ban-on-malaysian-glove-exporter-affects-nepalis" target="_blank">banned</a> after forced labour allegations. UK scheme operators faced sector wide <a href="https://nepalitimes.com/opinion/low-hanging-fruit-in-uk-farms" target="_blank">reputation damage</a>, while also losing licenses. All this when there are reliable companies which could have conducted the same recruitment drives in a responsible manner, and there are desperate jobseekers who would excel at those jobs.&nbsp; With standards like IRIS, identifying the ‘few good agents’, will be easier. There is also hope that the business downturns for ethical actors will not come in such frequencies and last so long by making diversification to new markets and sectors easier. Now with certifications like IRIS, good recruiters can distinguish themselves with more authority.&nbsp; Diversification is often difficult as good actors in the space do not have the reach, network or other means to demonstrate that they are indeed a different breed. International certifications like IRIS bring more visibility to the end of the labour supply chain actors. The workers also need to understand what such certifications mean. All overseas opportunities in Nepal are advertised as ‘free visa free ticket’ to abide by the law and misused to an extent that no one takes it seriously.&nbsp; Certifications like IRIS and other ethical accreditations would help migrants identify reliable recruiters, rather than just <a href="https://nepalitimes.com/opinion/fee-free-migration-is-possible" target="_blank">relying</a> on familiar but fraudulent individual brokers who they trust more. <div class="embed-block"><div><div style="left: 0; width: 100%; height: 0; position: relative; padding-bottom: 56.25%;"><iframe src="https://cdn.iframe.ly/api/iframe?url=https%3A%2F%2Fwww.youtube.com%2Fembed%2F-mh1uk3fvQc%3Fsi%3DUhdQFbVY_olM4bg8&key=87ca3314a9fa775b5c3a7726100694b0" style="top: 0; left: 0; width: 100%; height: 100%; position: absolute; border: 0;" allowfullscreen scrolling="no" allow="accelerometer *; clipboard-write *; encrypted-media *; gyroscope *; picture-in-picture *; web-share *;"></iframe></div></div></div> The value of this stamp of approval cannot be underestimated. After exposes of malpractice, the Nepali recruitment industry in the past has been tarred with the same brush, for example employers have pulled out from the UK seasonal visa recruitment.&nbsp; This is not a positive outcome for job seekers deprived of good recruitment opportunities. With certifications like IRIS, journalists, activists and others can also be more constructive in their exposés by putting the spotlight on ‘alternate’, well-vetted players and good practices.&nbsp; If these expectations from international certifications can translate to practice and ethical recruiters like IMR see their businesses expand, it will have a positive spillover effect across the industry. A strong business case for ethical recruitment standards will inspire more actors to forego ridiculously high profits from the traditional worker-paid model and transition from traditional to hybrid methods, then from hybrid to ethical models. Already, there are a handful of professional recruiters in Nepal who are committed to ethical recruitment and have received other international certifications. A critical mass of ethical actors in the space would raise the standards of the Nepali recruitment industry as a whole. Recruiters serve an important purpose which is often easy to overlook amidst all the malpractices by linking workers from the remotest parts of Nepal to rewarding, jobs abroad. The positive spillover also goes beyond the recruitment industry to achieve larger development goals. For example, <a href="https://www.migration-lab.com/" target="_blank">Migration Lab</a> has partnered with IMR in two projects to send workers from marginalised communities including <a href="https://nepalitimes.com/opinion/migration-is-development" target="_blank">Musahar</a> youth and <a href="https://nepalitimes.com/here-now/quake-survivors-migrate-for-work" target="_blank">Jajarkot</a> earthquake victims to Malaysia at zero cost.&nbsp; These were <a href="https://www.youtube.com/watch?v=-mh1uk3fvQc" target="_blank">piloted</a> to making migration accessible to those in the periphery, which <a href="https://documents1.worldbank.org/curated/en/099951004022532326/pdf/IDU-c2bf0781-1145-4639-8b64-321016ade046.pdf" target="_blank">it is not</a>. Migration is a powerful tool and using it strategically for good is possible, provided recruitment drives are free from the usual malpractice and abuse. We are still a long way from the practice where hiring companies and workers will actively seek out recruiters who are well vetted with internationally recognised certifications. But the fact that a Nepali recruiter has achieved a demanding international certification, and is the second in the world to do so, is promising.&nbsp; Upasana Khadka heads <a href="https://www.migration-lab.com/">Migration Lab</a>, a social enterprise aimed at making migration outcomes better for workers and their families. Labour Mobility is a regular column in Nepali Times.

Upasana Khadka

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Valuing moral migration

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd1dc9c7e80680e08f8dcjpeg.jpg" alt="" width="2560" height="1440"/><figcaption>Photo: UPASANA KHADKA</figcaption></figure>At the close of 2020, the Department of Foreign Employment (DOFE) conducted a  <a href="https://www.nepalitimes.com/here-now/labour-recruiter-netted-in-sting-raid/">sting operation</a> on a recruiting agency that was fleecing workers. The raid of its staff was made possible by migrant workers who turned to the public system for help, and it responded efficiently in their favour.This was not a one-off operation, but the eleventh one in December. It sent a strong message to the industry that every vulnerable migrant that is being cheated could be a potential whistleblower.There was nothing exceptional about the way the recruitment agency was operating—similar transactions, potentially of higher amounts, are a norm. Interestingly, there are also a few exceptions at the other extreme: agencies that practice ethical recruitment.One such agency is International Manpower (IMR), a recruiter that does not charge migrants any fees. As one of the largest recruiters in Nepal engaged with over a dozen employers in Malaysia and now diversifying to the Gulf, it has sent over 6,000 workers without charging them any fees.But it is an uphill battle, says Y B Rai from IMR. “We have been around for 17 years but have been practicing ethical recruitment only since 2016. For a couple of years, we adopted a hybrid model before we transitioned to ethical recruitment,” says Rai, adding that there is a steep learning curve.https://www.youtube.com/watch?v=jki4KlFImHo&amp;feature=youtu.beTo be sure, the path IMR has chosen is fraught with challenges. Employers who want to source ethically, audit closely before partnering with agents and run a thorough check on their background and operation module.In the past four years of operation, IMR has often turned down employers unwilling to pay service fees, even though it comes at a cost of foregoing easy money. The act of turning down business opportunities comes as a surprise to many employers who are used to getting kickbacks for job quotas.And migrants are in disbelief when IMR staff counsel them on not paying a single rupee for the jobs, because migrants when seeking jobs, tend to associate recruitment costs positively with 'job quality'.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd1df9c7e80680e08f8ddjpeg.jpg" alt="" width="1298" height="1236"><figcaption> </figcaption></figure>At Kathmandu airport last week, Kishori Mahara (pictured left) was headed to the UAE through IMR’s support. He said that till the last moment he still could not believe that he had not paid any fees for his job. He had paid agents in the past for jobs in Qatar and Saudi Arabia.IMR staff admit that they are an anomaly in the industry, and they have to forego easy and profitable offers. “To be able to hand over this business to our children with pride is a dream,” says Pranay Rai of IMR, who says the long-term economic gain of building a clean reputation is more important.The experience with both IMR and Manaslu (the agency raided in December) underscores important learning points. Employers are best placed to influence recruiter behaviour, but a big share of employers hiring Nepalis would prefer sourcing Nepali workers through recruiters like Manaslu rather than those with ethical standards.The Ethics Practitioners Association of Nepal (EPAN), an umbrella organisation of recruiters committed to ethical recruitment, has not been able to attract a single employer. Job offers by HR departments of employers are often allocated based on kickbacks received. Employer HR visits to Kathmandu for interviews are often sponsored by recruiters who go overboard to lock in future demand and pass on <a href="https://www.nepalitimes.com/latest/the-theory-and-practice-of-zero-cost-migration/">the costs</a> to the worker.This unhealthy competition extends beyond borders to thousands of recruiters from the Subcontinent. The extent of unethical practices in the migrant labour industry was exposed <a href="https://www.nepalitimes.com/here-now/nepali-workers-stuck-in-no-mans-land/">during Covid-19</a> pandemic.The <a href="https://www.reuters.com/article/us-health-coronavirus-malaysia-gloves-idUSKBN29208C">Malaysian Government</a> has been raiding its glove companies and exposing incidences of human rights abuse after the companies came to the global spotlight amid soaring profits during the pandemic. But pressure from third countries is still a rarity, while labour law enforcement in destination countries remains lax.There are a number of examples of pressure from third countries that have led to improved working conditions, but it is also a reminder that obtaining a secure working environments is a tall order. Unless recruiters are seen as part of a larger transnational ecosystem involving multiple profit-motivated players engaged in unethical practices, Nepalis will have to continue to be content with the existing provisions.Raids like <a href="https://www.youtube.com/watch?v=tABYP0wlToQ&amp;feature=emb_logo" target="_blank" rel="noopener noreferrer">the sting operation last month</a>, are necessary but not sufficient for systemic changes. Embassies that have the proximity advantage with the destination country players need to be further strengthened. Labour agreements that could form the basis for influencing how migrants are treated abroad need to be implemented.Ethical recruiters like IMR and members of EPAN have received no support from the government. As DOFE ramps up raids and suspends operations of fraudulent agents, it should also emphasise the good examples.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111124/636cd1e29c7e80680e08f8dejpeg.jpg" alt="" width="2560" height="1440"><figcaption> </figcaption></figure>EPAN and IMR’s experience shows that pivoting to the ethical track requires additional resources and could entail short-term financial losses. Policies that make the system rewarding for ethical agents should be a government priority, and international organisations like the ILO (International Labour Organisation) and IOM (International Organisation for Migration) that have expertise in this area and the global reach need to be leveraged.The ILO, for instance, has piloted a project promoting ethical recruitment of Nepali workers in Jordanian garment factories.With vested interest groups, political interference, regulatory loopholes and profits at the cost of the needy, it is difficult to picture professionalism and ethical beheaviour. But crossborder intermediation services will remain in demand given the attraction for <a href="https://www.nepalitimes.com/editorial/the-year-of-migrant-workers/">overseas jobs</a>, since 90% of recruitment is driven by recruiters.Perhaps the disproportionate focus on just the recruitment costs in Nepal’s migration governance is because it is often the root to subsequent vulnerabilities faced by migrants, and there is some semblance of control as the transaction takes place within Nepal’s jurisdiction. But salaries, associated benefits, and how they are treated all affect the wellbeing of a migrant worker.Sting operations are good examples to help curb fraudulent activities, particularly as the shrinkage in job opportunities due to Covid-19 heightens the risks of unethical practices. Lack of employment opportunities has spurred unhealthier competition among recruiters and more desperate migrants. But a government reward system that recognises and supports pioneer recruiters opting the ethical route is also needed.The migrants at the airport last week said they learnt about IMR through word of mouth and Facebook. They were lucky to land these jobs without paying fees because all overseas vacancies in Nepal are posted as ‘no cost’ in the public domain.The good players in the industry need to be publicly recognised, provided training opportunities and other incentives that will help them attract both employers and migrants. Only then can they distinguish themselves from the lot, build credibility and lead the way.Upasana Khadka writes this column Labour Mobility every month in Nepali Times analysing trends affecting Nepal’s workers abroad.

A few good agents

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b73a79c7e80680e06234fjpeg.jpg" alt="" width="1500" height="924"/><figcaption>An aspirant migrant worker appearing for a job interview in Kathmandu for Dubai-based positions. Photo: UPASANA KHADKA</figcaption></figure>Nepal’s <a href="https://www.nepalitimes.com/here-now/shared-stories-shattered-dreams/">overseas migrant workers</a> bear high recruitment costs. A 2016 survey by the International Organisation of Migration (IOM) shows that average recruitment costs to the Gulf ranged from $1,083 to $1,172, while workers going to Malaysia had to pay $1,388.Compare this to their average monthly salary in the destination country of $294-$346. Out of a two-year contract, workers therefore spend the first few months worth of earnings just on paying back recruitment costs. This is why zero-cost migration has <a href="https://www.nepalitimes.com/opinion/for-nepals-migrant-workers-good-news-in-small-bites/">received such enormous attention</a> in Nepal.The Government of Nepal <a href="http://archive.nepalitimes.com/article/nation/manpower-agencies-of-Nepal-are-the-ones-against-zero-cost-migration-policy,2402">has been advocating for zero-cost recruitment</a>, and it is also pushed by the International LabourOrganisation (ILO) which last year approved the definition of recruitment fees and related costs related to the placement of the worker to be borne by employers.The bilateral labour <a href="https://www.nepalitimes.com/latest/nepal-malaysia-labour-pact/">agreements between Nepal and Malaysia</a>, UAE and Mauritius have adopted these principles, and <a href="https://www.nepalitimes.com/here-now/win-win-migration/">has received accolades</a>. When high-level managers of the same employer get all recruitment-related fees refunded, including generous ‘relocation costs’, it is only fair that Nepali workers at the lower rungs of the ladder be provided a similar facility. On paper, it is against the law of countries like the UAE for a worker to be charged any cost related to recruitment.But implementation of this policy is a whole different story. Workers are not leaving the country without paying, and there are endless challenges like: workers willing to pay for stints abroad, unhealthy competition among recruitment agencies who outbid each other by buying visas from employers and transferring that cost to workers, and transactions between workers and recruitment agencies are difficult to monitor <a href="https://www.nepalitimes.com/editorial/reducing-labour-pain/">in the current status quo</a>. Despite the political will, even the strongest advocates of this principle realise <a href="https://www.nepalitimes.com/editorial/blood-sweat-and-tears/">there are practical challenges.</a><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101132/636b73aa9c7e80680e062350jpeg.jpg" alt="" width="515" height="318"><figcaption> </figcaption></figure>The Province 2 government recently announced a collateral free, low interest loan program for outgoing migrant workers in partnership with the DFID funded Skills for Employment Program and Prabhu Bank. While there are other features of the program such as financial literacy and increasing access to finance, the migrant loan is what is eye-catching in Nepal's context.So far, there have been nine beneficiaries of this scheme. There are merits to this initiative. It recognises that workers are paying interest rates as high as 36% by borrowing from local loan sharks since they do not have access to formal channels. Or, that this cost might be prohibitively high for the poorest segments of society which may not be able to bear the costs of recruitment and benefit from migration. It also takes into account that migrant workers are rationally choosing to pay for the service provided by recruitment agencies. How else would they find a job in Dubai on their own? After all, workers heading to Korea under the government-to-government bilateral program do also end up paying $1,141, although they are guaranteed to recoup this cost in a month, unlike other destinations (see graph).Nepal used to have a government-backed migrant loan scheme which failed because of the high rates of default. Countries like Bangladesh have migrant loan schemes through the Probashikallyan Bank and BRAC. Low cost migrant loan schemes, however, are new today in Nepal where the free-visa-free-ticket policy has dominated the discourse.The reaction in social media is quick. ‘There is a contradiction. Why do we need loan when there is a free visa free ticket policy?’ writes Ashim. Binita comments: ‘Very good. This means even the poor can now go for foreign employment.’Indeed, there are contradictions. For example, will an aspirant worker going to a local government office or a Migrant Resource Center in Province 2  for advice on safe migration  be referred to the loan program or recommended for the central government's  zero-cost recruitment, and to reject any placement offer demanding payment?Do the loan programs undermine other efforts attempting to adopt a zero-cost principle or are these principles just an end goal that we aspire for while in the near term we focus on incremental changes made possible by initiatives like the loan program?The difference between informal interest rates and the low-cost interest rate through the migrant loan scheme can make a visible difference to a worker. So, do we adhere to principles or practice?<a href="https://www.nepalitimes.com/opinion/why-has-zero-cost-migration-not-happened/">Last month in this space</a>, we raised the importance of elevating our discussion from whether the zero-cost principle is being implemented or not (because it is not) to the harder questions on why, how and if it can be enforced. The new loan program presents the opportunity to revisit the issue for a more constructive debate.Upasana Khadka writes this column <a href="https://www.nepalitimes.com/opinion/why-has-zero-cost-migration-not-happened/">Labour Mobility</a> every month in Nepali Times analysing trends affecting Nepal’s workers abroad.

Zero-sum game in zero-cost migration

It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

30 years after Baby Arun

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

The flower guy

It cannot be a coincidence that after pushing bills to constrict freedom of expression and allow greater <a href="https://nepalitimes.com/news/security-or-espionage">surveillance of citizens</a>, Nepal’s government is now tightening controls on civil society.
In a <a href="https://nepalitimes.com/opinion/guest-editorial/command-and-control">series of recent moves</a> journalists have been sued for contempt of court, imprisoned for YouTube videos, or ordered by courts to desist from investigating corrupt officials.
An amendment to the Print and Publications Act that would hand the power to shut online media to the Chief District Officer (CDO). Another draft Bill would allow a political appointee to head a new Media Council with the power to revoke a journalist’s license. The draft counter-intelligence Bill would let random officials to arbitrarily tap phones, read emails and trail citizens.
Now comes yet another draft Bill that would replace the <a href="https://archive.nepalitimes.com/news.php?id=10675">Social Welfare Council (SWC)</a> with direct government control over registration, regulation, and management of non-governmental organisations, nonprofits and charities. There are more than 54,000 NGOs, 200 international NGOs registered with the SWC.
The draft makes civil society organisations needlessly jump through hoops to carry out work that complements the government in the social sector. Critics say the Bill was drafted without any consultation with <a href="https://nepalitimes.com/opinion/comment/nepal-s-rights-groups-must-step-up-4r4z6ck4">civic groups</a>.
“This Bill’s content is questionable whether it intends to allow for civil society organisations in Nepal a free space to operate,” concludes Dr SP Kalaunee, Country Representative of BlinkNow Foundation and Chair of the Association of International NGOs in Nepal (AIN). “The draft seems oriented towards controling rather than facilitating the work of civil society organisations.”
The Bill will be open for feedback from the public, and integrates the National Directives Act (1961), Association Registration Act (1977), and the Social Welfare Act (1992) and proposes dissolving the SWC and replacing it with a new Social Welfare Department under the Ministry of Women, Children and Senior Citizens.
Non-government groups will now be required to get approval from the Registrar Office, the CDO or the provincial government depending on their area of operation. Those working across provinces will have to get permission from the federal government. &nbsp;
The government says the Bill is intended to vet organisations to see if they are engaged in espionage, violate national security, assist a foreign state, commit treason, cause strife between federal units, or incite communal violence.&nbsp;
CSOs working in Nepal have long called for legislation to better facilitate their work, minimise administrative and bureaucratic red tape which have posed operational challenges. But they are opposed to such drastic control.&nbsp;
Read also: <a href="https://nepalitimes.com/banner/the-crow-and-the-scarecrow">The crow and the scarecrow</a>, Om Astha Rai
The NGO Federation of Nepal also issued a statement this week calling the Bill ‘retrograde and cumbersome’. It added: ‘Most of its provisions are intended to further constrain and control civil society organisations rather than facilitate and strengthen them, and reduce the role of citizen participation … it is an attack on our civil liberties, inclusivity, and transparency, and curtails our <a href="https://archive.nepalitimes.com/news.php?id=5156">democratic values and constitutional rights</a>.’ &nbsp;
<a href="about:blank">Nepal’s graduation</a> from least-developed country status next year may mean less aid for Nepal, and higher interest rates on loans from multilateral creditors. The <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">closure of USAID </a>and reduction in bilateral grants means the work of INGOs will be even more vital – especially to meet its <a href="https://nepalitimes.com/here-now/target-2030-for-maternal-and-newborn-health">SDG targets by 2030</a>.&nbsp;
“We are competing with other countries at a time when the global aid environment is shrinking, so the support we receive is directly dependent on a conducive environment for INGOs to operate and function,” says Kalaunee. “INGOs follow regulations of the nations they operate in, they will not protest or wait around for governments to change their minds or policies.”
Social safety net
Since 1977, the work of non-governmental actors in Nepal has been regulated by the Social Service National Coordination Council (SSNCC) chaired by Queen Aishwarya.
After the <a href="https://nepalitimes.com/banner/one-moment-30-years-ago-today">1990 People’s Movement</a>, King Birendra set up the Social Welfare Council (SWC) as an autonomous body in 1992 through the Social Welfare Act. But since then the SWC has been dogged by controversy and allegations of corruption and extortion.
In 2018, the Commission for the Investigation of Abuse of Authority (CIAA) filed a Rs315 million corruption case against 14 individuals, including the Minister of Women, Children and Social Welfare and SWC chair Badri Prasad Neupane and other officials for violating public procurement laws to rent out three hectares of its property around Bhrikuti Mandap.
Civil society groups have for years called for reforms in the SWC, and a report was drawn up to restructure it before this Bill proposed its dissolution. INGOs in particular will now have to go through the Social Welfare Department and multiple ministries for permissions.
A particularly objectionable provision in the draft stipulates that NGOs must have a Board of Director made up almost entirely of secretaries of various ministries. The NGO Federation has urged the government to take a civil society-friendly approach and not tangle its work in red tape and control. It says the government has no option but to revise the bill in its current form.
“Civil society organisations need an open space to operate, and an autonomous body to oversee them,” says Kalaunee. “Non-government organisations support in the areas prioritised by the government but by definition they cannot be a part of government.”

Big, beautiful Bills

An average Nepali could live 3.3 years longer if air pollution is reduced to meet the World Health Organization (WHO) guideline, according the annual <a href="https://aqli.epic.uchicago.edu/">Air Quality Life Index</a> 2025 published this week. The annual average concentration of tiny suspended particles in the air (PM2.5) in Nepal in 2023 was 38.3 μg/m3, nearly eight times the WHO standard, and 10% higher than 2022. Thirty years ago, air pollution in Nepal was half the current levels. WHO says particulate concentration above 5μg/m3 &nbsp;is<a href="https://nepalitimes.com/here-now/what-is-invisible-is-more-dangerous"> hazardous to health</a>.&nbsp; The most <a href="https://nepalitimes.com/banner/why-is-the-air-in-bhaktapur-so-bad">polluted parts of Nepal</a> are along the Indian border in Rutahat, Mahottari, Dhanusha, Parsa and Bara districts in Madhes Povince where average life expectancy is reduced by as much as 5.3 years.&nbsp; People in Sarlahi, Siraha, Saptari, Morang, Sunsari, Rupandehi and Jhapa are also dying at least 4 years earlier. The Air Quality Index 2025 report which is published annually by the Energy Policy Institute at the University of Chicago, says the figure is relatively lower for Kathmandu and Lalitpur at 2.6 and 2.4 years. After the Madhes, Kosi and Lumbini Provinces are the most polluted — especially in towns along industrial corridors and near the border. Karnali Province was by far the cleanest, followed by Sudurpaschim. Read also: <a href="https://nepalitimes.com/here-now/epicentre-of-pollution">Epicentre of pollution</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279.jpg" data-media-id="editor_4" data-image-id="20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279" data-rendition-name="original" width="753" height="584" loading="lazy" alt="AQLI map"> <figcaption>Potential gain in life expectancy from permanently reducing PM2.5 from 2023 concentration to the WHO guideline.</figcaption> </figure>  Air pollution is now the leading external<a href="https://nepalitimes.com/editorial/cleaner-air-longer-lives-0z0okfeu"> threat to life expectancy in Nepal</a>, exceeding both tobacco and diet-related risks, which reduced average lifespans of Nepalis by 1.9 years and 1.3 years respectively. The Air Quality Management Action Plan for Kathmandu Valley introduced in 2017 had identified vehicular emissions, brick kilns, and construction as the most polluting. It adopted measures to strengthen air quality monitoring, develop emissions inventory, and conduct impact assessments. Other major sources of emissions in Nepal include <a href="https://nepalitimes.com/news/no-smoke-without-fire-p7vb9dcj">forest fires</a>, crop residue and garbage burning as well as transboundary pollution from India and Pakistan. The report says India is the world’s most polluted country with the particulate concentration in 2023 at 41 μg/m3, an average resident in India could live 3.5 years longer if pollution levels were brought down to meet the WHO guideline. Residents of New Delhi on average would live 8.2 years longer if they breathed clean air. South Asia has some of the world’s most polluted cities. On some winter days, Kathmandu records the worst air quality in the world. In 2023, PM2.5 concentrations in South Asia declined by 9.6% between 2021 and 2022 due to lockdowns during the peak of the Covid-19 pandemic. ‘After a dip in 2022, particulate pollution in South Asia increased by 2.8% in 2023 — though it remained 7% lower than in 2021,’ <a href="https://aqli.epic.uchicago.edu/report/annual-update-2025">states the report</a>. ‘In the region’s most polluted countries, particulate pollution’s impact on life expectancy is nearly twice that of childhood, and maternal malnutrition and more than five times that of unsafe water, sanitation and handwashing.’ Elsewhere, unprecedented wildfires caused particulate concentrations to rise to levels not seen since 2011 in the United States and since 1998 in Canada. China also registered a decline in air quality, an increase of 2.8% in particulate pollution in 2023 relative to 2022, the first in a decade since the start of its ‘War on Pollution’ in 2014.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47.jpg" data-media-id="editor_8" data-image-id="20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47" data-rendition-name="original" width="754" height="501" loading="lazy" alt="AQLI line graph"> <figcaption>Annual average PM2.5 concentration in Nepal from 1998-2023.</figcaption> </figure>  Globally, the PM2.5 concentration in 2023 was 1.5% higher than in 2022, and nearly 5 times the WHO guideline. If global particulate pollution were permanently reduced to meet this guideline, an average person around the world would gain 1.9 years of life, adding 15.1 billion total life years to the <a href="https://nepalitimes.com/opinion/the-future-is-older">global population</a>, the report adds. ‘Particulate pollution remained the greatest external threat to human life expectancy in 2023, with <a href="https://nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking">its impact comparable to smoking</a> and surpassing other major health risks,’ the report says. ‘Its toll on life expectancy is more than 4 times that of alcohol use, 5 times that of transport injuries or unsafe water, sanitation, and handwashing, and more than 6 times that of HIV/AIDS.’ The report also highlights the need for open data, and says that accessible air quality information has translated into reduced particulate concentrations and gains in life expectancy in the United States, China, and Poland. Besides data, the report says, investment in monitoring and other air quality management infrastructure must be matched by political will, ambitious policies, capacity building, and sustained enforcement.