Submit your Article

Prime Minister KP Sharma Oli’s first official visit to China on Dec 2-5 after assuming office in July has garnered significant attention both domestically and internationally. Central to discussions following the visit is China’s Belt and Road Initiative (BRI), which overshadowed other bilateral issues.

A key outcome of Oli’s visit was the signing of a Framework for Belt and Road Cooperation, marking progress in Nepal’s engagement with the BRI. For the first time, 10 specific projects under the BRI were identified. These projects are divided into two categories: long-term ventures like cross-border railways and tunnel projects, which require significant investment and time, and smaller, less capital-intensive initiatives.

To finance these projects, Nepal and China agreed on an “aid financing modality,” widely interpreted by economists as concessional loans. However, details of the agreement remain undisclosed, leaving even ruling parties unclear about the specifics. Prime Minister Oli has stated that Nepal will accept grants, not loans, under the BRI framework. Upon his return, he assured: “During negotiations, the issue of loans did not arise. Implementing specific projects may require separate discussions.”

The agreement represents a breakthrough in the ongoing narrative that BRI had stagnated in Nepal since the first framework agreement in 2017. Critics had attributed the delay to geopolitical factors, including external pressures. Following Nepal's endorsement of the US-backed Millennium Challenge Corporation (MCC) in 2022, China had been eager to advance the BRI, questioning why Nepal accepted the MCC but hesitated on the BRI. The new agreement allows China to showcase progress, countering claims of inactivity.

For Oli, the deal offers a political advantage. He faced pressure from within his party, particularly senior leaders like former President Bidya Devi Bhandari, to demonstrate progress on the BRI. The agreement has been welcomed by many leaders in Oli’s party, CPN-UML, and is likely to gain support from the CPN (Maoist Center) as well, though its Chair Pushpa Kamal Dahal may downplay the achievement.

The timing of the agreement is notable. In 2023, an implementation plan was nearly finalized under Dahal’s premiership, but he deferred the matter during his visit to China. Fringe communist parties, ideologically aligned with Beijing, have also expressed support for the deal. Notably, Oli’s previous tenure in 2016 saw the historic signing of the Transit and Transport Agreement with China to diversify Nepal’s trade and transit options, cementing his reputation as a leader seeking stronger ties with Beijing.

Foreign policy analysts argue that endorsing the BRI after the MCC helps Nepal maintain geopolitical balance. Internally, the deal has helped avert potential friction between the Nepali Congress (NC) and UML. Oli managed to secure Foreign Minister Arzu Rana Deuba’s backing, unlike Dahal, who failed to involve Narayan Kaji Shrestha from his party during earlier BRI discussions.

However, critics describe the agreement as more symbolic than substantive. The NC, a key coalition partner in the Oli-led government, has expressed concerns over its alignment with prior consensus. Former Foreign Minister NP Saud noted that the agreement contradicts the party’s stance to accept only grants under the BRI. He warned that this issue could escalate within the party. Similarly, NC leader Nain Singh Mahar stated that the deal diverges from the party’s position. The government is now under pressure to disclose the agreement's details to address these concerns.

Soon after his return, Oli met with a task force formed to build consensus between the NC and UML on the deal. The meeting aimed to preemptively address dissatisfaction within the coalition, as some NC leaders opposed to the BRI may leverage the issue politically.

Beyond the BRI, Oli’s visit emphasized implementing past agreements rather than signing new ones, aligning with long-standing Chinese priorities. While some expected Prime Minister Oli to negotiate a loan waiver for the Pokhara International Airport, he clarified that no such discussions occurred. Nine agreements were signed during the visit, accompanied by a joint press statement.

Chinese media highlighted the significance of Oli choosing China for his first bilateral visit. Hu Zhiyong, a researcher at the Shanghai Academy of Social Sciences, observed that this choice signals Nepal’s prioritization of ties with China. Qian Feng, from Tsinghua University’s National Strategy Institute, emphasized Nepal’s strategic importance in maintaining stability in Tibet and its growing role in BRI partnerships. Hu added that South Asian countries like Pakistan, Bangladesh, Sri Lanka, and the Maldives have benefited from BRI projects, and Nepal, too, seeks a share of this “big cake for cooperation.”

Nepal is one of the countries facing severe environmental challenges in recent years. These challenges stem from climate change, marked, among others by, erratic weather, including unpredictable monsoons, exacerbating food insecurity and destroying livelihoods. For example, natural disasters, including the devastating earthquake of 2015, highlighted the fragility of the Nepali economy.

These challenges outline the need to adopt green economy growth with full importance attached to sustainable development, environmental protection and social equity. It describes the transition of Nepal toward a green economy through examination of sectors like renewable energy, sustainable agriculture and eco-tourism. National policies can play a vital role in fostering international partnerships toward the transition. Furthermore, the green economy in Nepal represents a development trajectory that balances economic growth with care for the environment. It is an alternative path for building a resilient and more prosperous future.

A green economy is an economic organization in pursuit of reducing environmental risks and ecological insufficiencies while concomitantly contributing to sustainable economic growth. The focus is on resource efficiency, low-carbon technologies and inclusiveness to ensure that economic development does not happen at the cost of the environment. The concept of green economy is curving into renewable energy, sustainable agriculture and green infrastructure, and leading toward future prosperity by conserving natural resources for the future.

Around the world, the shift toward green economies is gaining momentum, driving urgent efforts to tackle climate change and environmental challenges. Nepal, recognizing its responsibilities as a signatory to the Paris Agreement, has taken bold steps to align its national priorities with global commitments. The country has pledged to reduce greenhouse gas emissions, strengthen its climate resilience and achieve net-zero emissions by 2045. Reflecting its dedication to sustainable development, Nepal Rastra Bank introduced the Green Finance Taxonomy in October 2024, offering clear guidelines to channel investments into eco-friendly and sustainable initiatives. Furthermore, Nepal’s updated Nationally Determined Contributions (NDCs) highlight its ambition to confront climate challenges while supporting international objectives. These measures exemplify Nepal’s unwavering commitment to advancing a green economy that addresses its unique environmental and socio-economic realities..

Nepal is rapidly moving toward a green economy, thanks to initiatives from the government, business sector involvement and grassroots organizations. The government has taken the lead in this transition through the introduction of key policies that ensure sustainable development. A very good example is the 15th Five-Year Plan of the National Planning Commission, which focuses on green growth with hydropower projects in renewable energy and intends to produce 15,000 MW by 2030. In addition, sustainable agriculture programs enhance and promote organic cultivation along with climate-resilient practices that eventually enhance food security and environmental sustainability. Eco-tourism is also added through projects that seek to maintain the resources and offer a livelihood to the surrounding economies.

The private sector in Nepal is also increasingly adopting green practices.  Private companies also invest in renewable energy, including hydropower. In sustainable products and eco-friendly services, organic food production and green building construction, businesses show a growing commitment to environmental stewardship.

At the grassroots level, local communities and NGOs are driving the green economy. Community forestry, for instance, ensures that the locals manage and conserve the forests themselves to contribute toward biodiversity protection and carbon sequestration. NGOs implement sustainable farming that improves livelihoods while doing less harm to the environment. These combined efforts put Nepal right on track for a sustainable and resilient future.

Nepal is advancing to achieve a green economy, but several significant challenges are yet to be resolved. The financial situation remains a constraint as not much investment can be afforded to large-scale projects in renewable energy sources and other green initiatives. Insufficient infrastructure in most parts of the country disrupts the pace of adopting sustainable technologies, especially in rural and remote areas. Besides, some of the other impediments in the path of green development include non-uniform implementation of environmental regulations and policy gaps.

These challenges shifting toward a green economy bring a set of new opportunities for Nepal as follows. More basically, it invests in newly developed green industries concerning renewable energy, sustainable agriculture and ecotourism that could unlock more value of employment generation side by side with sustainable environment impacts. Also, some changes have a direct positive impact on public health as a result of lower pollution standards and shifts toward a more environment-friendly way of life. Moreover, this commitment to a green economy creates the opportunity for international investment in Nepal, especially those institutions, which have focus and attention on climate finance and sustainable development. Thus, by learning about these prospects and interpreting the issues at the macro-level, Nepal provides an area for carrying out the ‘right track of a sustainable and conscious future’ that indeed aligns with the sustainable development goals and enriches the worth of economic and environmental healthiness in the country.

The country’s commitment to sustainable development has testified through different successful green economy initiatives in Nepal. The classical example is "Upper Tamakoshi Hydropower Project," which was initiated in 2011 and has been commercially operated since 2021, is the largest hydropower project in Nepal, generating 456 MW of electricity. This move of the government increased manifold the renewable energy generation capacity of Nepal, helped in reducing its dependence on imported fossil fuels and opened up avenues toward energy security.

The ‘Annapurna Conservation Area Project’ was established in 1992 and is a beautiful example of grassroots conservation. Self-managed by local communities with the support of NGOs, ACAP has succeeded in integrating conservation with sustainable tourism for the betterment of the environment and local economies. It is fast becoming a case-study for balancing environmental preservation against economic development in this most iconic of regions. These success stories represent the very best of the green economy of Nepal and reveal how the government, private sector and civil society can work in concert toward common goals with sustainable and effective impact.

Looking ahead, the future of the green economy in Nepal is very bright but it requires concerted efforts from all sectors of the economy to realize its full potential. Finding ways out of these existing challenges requires the enhancement of financial mechanisms, such as green bonds and climate funds, to support large-scale investments in renewable energy and sustainable infrastructure. Infrastructure development, especially in rural areas of the country, has become key to reaching green technologies in every corner. 

Nepal must also focus on building capacity through education and training programs that prepare the workforce for emerging green industries. Innovation and entrepreneurship in the fields of renewable energy, sustainable agriculture and eco-tourism hold immense opportunities for job creation and diversification of Nepal's economy. Time to act means that the policymakers have to commit the green economy to national priorities, businesses should be adopting sustainable business practices and the general public has to support and be involved in such processes. Together, the strong drivers of shaping Nepal's future are environmentally sustainable, economically prosperous and resilient. The green economy is the pathway to a brighter, more sustainable Nepal.

Nepal’s transition to a green economy is not just a strategic choice but an essential pathway for sustainable development. The government's initiatives in renewable energy, sustainable agriculture and eco-tourism are well-illustrated examples of great progress, with an increasing commitment from the private sector to green practices, partial completions need to be addressed. Certain shortcomings in terms of finances, infrastructure and policies need to be fixed for the full realization of such a vision. At the same time, the opportunities spread out by the green economy, job creation and improved public health to international investments hold great promise for the nation.

As Nepal has reached such a decisive juncture, it is difficult to overstate the need for the country to embark on the green economy path. The choices made today will determine Nepal's environmental and economic future for centuries. Will Nepal seize this moment in time to set an example in sustainable development or will it allow short-term obstacles to get in the way of long-term prosperity? It lies in the collective action of policymakers, businesses and citizens to advance the green economy, ensuring a resilient and prospering future for all.

The PEN Asia/Pacific Region Conference was scheduled to take place in Manila, the capital of the Philippines, from Oct 24 to 29. The primary objective of the conference was to encourage women’s active participation. I received a recommendation from Nepal PEN to attend this significant event. Ready to embark on my journey, I had made arrangements to fly with Singapore Airlines on Oct 23. Prior to the conference, I engaged in discussions with fellow members of PEN Nepal to strategize on key agenda items, including:regional perspectives on language and translation; challenges related to online expression; and the role of young writers and their impact on the future of PEN.

These discussions aimed to ensure our active participation and contribution to the conference’s overarching goals. In addition to addressing the specified agendas, participants engaged in discussions about the advancements achieved by their respective country’s PEN chapters. They also shared insights on their favorite books, providing reasons for their preferences. 

Having traveled from Nepal, I arrived well-prepared for these discussions. Furthermore, I brought along a poem titled ‘Humanity’, written to resonate with contemporary world events, particularly related to literature-a theme contributing to the PEN conference.

After about five hours, the plane landed in Singapore. Subsequently, the journey continued to Manila via Air Singapore, taking about three and a half hours before landing in the capital of the Philippines. It being my first visit to Manila, I anticipated confusion, but fortunately, everything proceeded smoothly. At the exit of the airport, I spotted a female holding a placard with my name written on it. I was very happy to meet her, ending all my confusions and hesitations. Shortly after, a participant from Bangladesh also arrived. 

As we arrived in the evening of Oct 24, the day was relatively uneventful. The following day marked the opening ceremony and the PEN Philippines Congress. Attendees from Philippines, Nepal, Bangladesh, Malaysia, Cambodia, Myanmar, Japan, Australia, and Sri Lanka were present. The opening ceremony featured diverse cultural programs, poetry readings, and discussions on various literary topics. The day before, the organizers had contacted me, requesting that I recite a poem during the program, given my identity as a poet. Although surprised and initially uncertain, I agreed, reassuring them that it would be feasible as I had brought one of my poems with me. 

The following day, multiple activities took place during the Philippines Congress. It was announced in the program that poems from Nepal and Malaysia were scheduled for recitation as part of their participation. My friends advised me to first recite the poem in my native language and then in English. I hesitated, pointing out that they wouldn't understand Nepali, but they insisted that hearing the poem in its original language would convey its spirit more effectively. I also felt the importance of showcasing my language to the world. Consequently, I recited the poem ‘Humanity’ first in Nepali and then in English. 

From Oct 26 to 28, we were engrossed in the workshop for three full days, spanning from 9 am to 10 pm (including free evening). The sessions included discussions on the progress achieved by PEN chapters in different countries and conversations about the favorite books of the participants. Taking into consideration the workshop’s emphasis on women’s participation, I found it relevant to discuss Susheela Karki’s book ‘Justice’ from Nepal. As the former Chief Justice of Nepal, she published her book ‘Justice’ post-retirement. During my presentation, I highlighted the challenging cases she handled during her tenure and her courageous stance, which led to her impeachment by the government for refusing to support an unjust decision. Ultimately, her commitment to justice prevailed. Sharing the success story of this courageous female Chief Justice left everyone present surprised and equally delighted.

Following a comprehensive discussion of everyone’s perspectives on the topic, the focus shifted to the three main themes of the workshop. During the discussion on the “Regional perspective on language and translation,” it became apparent that, with the exceptions of Japan and Australia, many countries faced similar challenges. Even though the national language is one, there are many languages, but there is a scarcity of literature in those languages. Even when written, many people do not understand the language, and there are no opportunities and arrangements for translation. In the case of Nepal, where Nepali is the national language, there are 123 other languages. Most lack a written script, and despite constitutional recognition as national languages, only a limited amount of literature is available in these languages. Moreover, even when literature exists, shortage of translators hinders its dissemination on national and international platforms. Besides, in schools, the lack of educators, writers, and textbooks for many languages obstruct progress, limiting the development of these languages. These challenges restrict writers in various languages from realizing their full potential, contributing to a scarcity of women writers as well. Geographical, ethnic, and cultural factors further limit women from openly expressing their feelings. Despite proficiency in the Nepali language, they struggle to write literature in Nepali as it is not their mother tongue. Furthermore, in the age of AI, accessibility to this technology is not easy for many in Nepal.

Similar challenges were identified in other countries too. Hence it was agreed that the initial step to be taken is promoting writing in one's own language. This approach, reflective of the customs, religion, and culture of respective regions, lays the foundation for addressing the issues at hand. After that, the importance of raising awareness and providing training in the use of AI for translation was discussed. Facilitating access to publishers was also recognized as crucial to ensuring that articles and literature could reach national and international readers. 

Additionally, regarding the challenges in ‘Online Expression’, it was observed that the potential of the writers from many countries, including Nepal, have not been fully utilized. Despite the current availability of advanced online platforms that enable global communication, meetings, and conferences without physical presence, the effective use of online expression has not been practiced, due to which even the talented writers have lagged behind. Hence, representatives from all participating nations unanimously acknowledged the necessity of developing a robust system for Online Expression. The consensus was to focus on raising awareness and providing training to potential writers on the use of online expression technologies.

Concerning Young Writers, it was found that the Philippines has a lot of young writers, but this is not the case in many other countries. In Nepal, the count is even lower compared to other nations, given its diversity in languages, castes, and cultures. Recognizing the need to focus on and enhance the participation of young writers, I conducted a self-analysis and acknowledged that I myself haven’t done as much as I could to encourage them. This realization prompted a commitment to concentrate on works written in various scripts and actively consider translation efforts. In response, I decided to dedicate my efforts to increasing the membership of young writers from diverse castes, languages, and religious cultures. 

There was also a discussion session on gender based violence and sexual harassment to the women and how we could contribute in addressing it in our respective areas. In the end, I found that everyone agreed with what Nepal presented in relation to the Future of PEN. According to which, we decide on the following points: organizing similar workshops/conferences on a regular basis to connect women writers from around the world; prioritizing women writers in such workshops/conferences; ensuring PEN activities are dynamic and diverse, breaking away from stereotypes; and involving new writers in PEN activities, fostering a sense of belonging among all writers.

Focusing on these themes, the Asian Pacific PEN workshop and training in Manila concluded on a positive note. However, echoing the sentiment of Nepali poet Madhav Ghimire, “The story is over, the pain is still there,” I couldn’t ignore that PEN Nepal might not have fully realized its potential. It is disheartening to acknowledge that PEN Nepal has neglected in expanding membership and has been influenced by specific individuals, thus confining the international organization like PEN Nepal within has been limited within the familial circle. Hoping for a positive change, I wish that the situation within PEN Nepal will improve for the better in the future.

The WTO agreement, a multilateral trade arrangement (MTA), is not a signed agreement. Nepal has been implementing it through the negotiation process for about 1.5 decades. While acquiring WTO membership, Nepal had made commitments on trade in goods, including farm products, trade in services and commitments on TRIPS along with legislative and adjudication commitments. These commitments, including commitments on legislative and adjudication, remain unfulfilled.  

Some of the trade opportunities of the WTO arrangements are security at market access opportunities, uniform sets of rules at borders, fair trade opportunities through elimination of quotas, predictable trading environment, counter to unfair trade practices and access to dispute settlement bodies.

Some of the negative impacts of the WTO arrangements are market access constraints and negative impact on business.

Market access constraints include tariff barriers to poor countries, and constant decline of commodity prices across the countries whereas negative impacts include threat to domestic industry from free imports, revenue loss to government, erosion of SME’s special privilege, farmers’ right to seed (Patent problem), reduced food security due to low productivity and others. 

The implementation of South Asian Free Trade Agreement (SAFTA), which began in 2006, stipulates reducing customs duty between 0 and five percent by 2015. However, full implementation of SAFTA has not materialized in a real sense with even exportable products in SAFTA’s sensitive list, though Nepal has reduced the number of sensitive products included in the list to about 1,000 from 1,295. After 2006, countries in the South Asian region have reduced the customs duties to boost intra-South Asian regional trade, which remains below five percent. It is difficult to evaluate the overall impact with import of goods under SAFTA provisions not yet started and revenue compensation mechanism not yet implemented. 

Still, it is quite difficult to reduce the customs duty on non-sensitive products. 

Poor transport network, a difficult access to ports, difficulties in implementation of rules of origin, insufficient trade facilitation measures, un-uniformity in TBT-SPS provisions and documentation within the SAARC region countries have reduced the impact of SAFTA.

We are on the way to achieving greater market access, preferential market access facility and transport, including transit way access. Nepal’s trade with SAARC member-states, barring India, is insignificant as yet. 

Besides SAFTA, there are India-Sri Lanka Free Trade agreement/FTA(1998) and Pakistan-Sri Lanka FTA (2002) for bilateral trade promotion. Nepal has entered into bilateral trade agreements with some countries in South Asia, namely Bangladesh, India, Pakistan and Sri Lanka, which are crucial for implementation of SAFTA provisions. 

Supply-side constraints, lack of infrastructure, lack of standard lab, trained human resources and coordination can be reduced by implementing bilateral trade agreements within South Asian countries. Bilateral agreements can help increase trade volume within the SAARC region, which is still low, pointing at the status of implementation of these agreements. 

Impractical provisions of SAFTA and bilateral FTA are also to blame for a grim regional trade and cooperation scenario. This calls for integration of SAFTA with the South Asian Regional Investment and Trade Agreement (SARITA).

India and Pakistan perhaps offer the best example of delayed implementation of SAFTA. The relation of individual countries in the South Asian region with the USA and other wealthy countries can explain the status of implementation of SAFTA.

In this context, trade liberalization in the South Asian region will reduce the cost of products in the value chain and supply chain, directly benefiting consumers of countries within the SAARC region. 

Policymakers have considered only some aspects of trade-related consumer welfare and full implementation of SAFTA is still a far cry. 

The current volume of intra-regional trade in South Asia is a paltry 4.8 percent of the total trade of the countries in the region. 

To boost intra-regional trade and economic cooperation, the highest priority should be on dialogue between politicians, producers and consumers along with trust-building initiatives on the part of the civil society.

The writer is a former deputy executive director of TEPC. Views are personal