Submit your Article

Recent elections in neighboring India and results thereof continue to be scrutinized from several perspectives—both within India and elsewhere in the democratic world. The staggering number of eligible voters, 970m, alone was good enough to attract global attention in this five-yearly electoral exercise which began in 1951—almost four years after it ceased to be a British colony.

Interest in elections in the South Asia region was obviously higher than other regions, mainly because of  geographical proximity. Those sharing borders with India, including China and Pakistan, closely monitored the process with main focus on its outcome. For other neighbors, the process too was equally important. Cultural affinity also played its role as was palpable in Nepal. That the political party with commitment to Hindu nationalism continued to dominate other forces across India was bound to generate additional curiosity in a Hindu-majority Nepal. The keenness was natural.

Cultural affinity has a linguistic dimension as well. And that was in full view through media outlets, particularly during the oath-taking ceremony held for newly-elected parliament (Lok Sabha) members. As was visible, two of the lawmakers took oaths in Nepali language: Indra Hang Subba from Sikkim and Raju Bista from Darjeeling (West Bengal). Subba (35) belongs to Sikkim Krantikari Morcha and was first elected in 2019. Bista (38), a member of Bharatiya Janata Party (BJP), is re-elected this year. Although they had different political affiliations, both Subba and Bista took pride in taking oath in Nepali.

Incidentally, what can be the decisive feature identifying a person of Nepali ethnicity in a throng of 543 men and women in a spacious chamber? It is neither food nor attire. It is the language—the Nepali language—which helps to single out who is who. A ‘Topee’(cap) may occasionally offer a clue, but is not a reliable substitute for the language.# 

Realistic recognition

Nepali is one of the 22 languages recognized by the Constitution of India. But the recognition was not easily acquired; It came by only after a concerted campaign and struggle the Nepali-speaking Gorkhas conducted for decades. Nepali language was included in the eighth schedule of the constitution in 1992. 

According to India’s census of 2011, 2.9m people in India have identified Nepali as their mother tongue. Apart from Sikkim and West Bengal, Nepali speakers are to be met in Assam, Arunachal Pradesh and Meghalaya, among other places. For example, Raju Bista, who represents Darjeeling, has his origins in Manipur. On the Western flank, Uttarakhand and Himachal Pradesh are the two main states with sizable Nepali-speaking populations. Delhi is also listed as a place where a significant number of Nepali speakers are said to be residing.       

In Sikkim, Nepali has traditionally been a lingua franca–i.e. it is understood and spoken by all other communities of the state, and beyond. Prominent Indian diplomat Harsh Vardhan Shringla is one of those high-ranking individuals having their lineage in Sikkim, and therefore speak Nepali flawlessly. When Sikkim’s university bestowed an honor on him, he chose to address the audience in Nepali. Shringla once visited Nepal as India’s foreign secretary, and was seen to be enjoying conversation in Nepali. One of his predecessors, who happened to be India’s first female foreign secretary, Chokila (Tshering) Iyer, was also conversant in Nepali; Darjeeling was her birthplace. 

For the people of Darjeeling-Sikkim region, July 13 is a special day when they pay tribute to the late Nepali poet Bhanubhakta Acharya. In 2016, President Pranab Mukherjee attended the function held at Chowrasta, marking Acharya’s 202nd birth anniversary. “We would like to strengthen this unique relationship amongst us,” Mukherjee said, referring to India’s ties with Nepal. 

In nearby Bhutan, Nepali remains one of the three main languages despite a mass eviction, in the 1990s, of Nepali-speaking Bhutanis. As a reporter, I have recollections of some occasions when visiting Bhutan ministers preferred to issue statements in Nepali. To further east, trouble-torn Myanmar (Burma) is another country where a significant segment of its population speaks Nepali.     

Knee-jerk reaction

Back to the oath-taking ceremony in the Indian parliament last month. Marking the occasion, this writer offered a comment on X (Twitter), in Nepali, essentially saying the obvious: That thousands of people had contributed to the campaign that led to the recognition of Nepali language in early 1990s. My observation generated some instant reactions and responses.While most of the X users cheered the news, some appeared rather inquisitive. The question was if India has constitutionally recognized Nepali, why can’t Nepal reciprocate in kind? In other words, a sort of imperative call to include Hindi in Nepal’s constitution. Ostensibly, this  is an innocuous query posed with a concomitant suggestion. My brief reply to the concerned readers contained the following points: 1) Nepal’s system runs in accordance with Nepal’s constitution; India’s governance is conducted on the basis of their statute. 2) India’s territory is large, and so is India’s population.

How is it possible to have equality between the two in every respect? 

3) Unlike Nepali, which is Nepal’s lingua franca, Hindi is yet to gain that status inasmuch as it is not accepted in India’s southern states where English continues to be the official language. 

Here I want to add a point which I did not insert in my quick response to X users: What all of us inside Nepal and intelligentsia across the southern border need to acknowledge and understand is the fact that Nepali language was included in the Indian constitution to expressly address the grievances of their own important constituency—of Gorkhas. No one in post-independent India can afford to underestimate their bravery, and the professional soldering the Gorkhas have rendered for the safety and security of India. Those who think Nepali language has been recognized by the Indian constitution merely to appease Nepalis of Nepal are living in a great illusion.    

Knee-jerk reactions, which surfaced through social media platforms like the X, are bound to be based on superficial understanding of the issue at hand. It is a pity that the emerging crowd of digital users tend to pay scant attention to the history and social background of the very country they belong to. Barring exceptions, grownup boys and girls of this ‘postmodern world’ seem to find ample time for socializing and recreation, but can spare little for serious study or research. Westernized lifestyles have made them self-centered, often at the expense of collective well-being.

Views are personal

Dear readers,

Nepal’s coalition politics continued to dominate the headlines this week. With the secret agreement between KP Sharma Oli of CPN-UML and Sher Bahadur Deuba of Nepali Congress pushing the Pushpa Kamal Dahal-led government into minority, Dahal is set to face a trust vote in Parliament today. Despite being likely to lose his seat, Dahal has been working hard to put up a fight, engaging fringe parties to secure their votes.

The Rastriya Swatantra Party (RSP) has pledged its support to Dahal, keeping its ministers in place to bolster his plan to face Parliament. The CPN (Unified Socialist) has also decided to support Dahal, who is working to revive the ‘socialist forum’, a network of communist parties opposing big parties like NC and UML. But, the Rastriya Prajatantra Party has decided not to vote for PM Dahal. 

Despite Dahal’s efforts, he is expected to lose the vote of confidence, bringing the focus to the new government formation process. The NC and UML have decided that the President should initiate this process according to Article 76(2) of the Constitution, which involves forming a coalition government of two or more political parties.

If President Ram Chandra Paudel calls for this, Oli could become prime minister by Monday. However, the Maoists and fringe parties argue that if the current government fails to secure a vote of confidence, Article 76 (3) should apply. This article states that the President shall appoint the parliamentary leader of the party with the highest number of lawmakers, meaning Deuba could be appointed prime minister instead of Oli. How Oli and Deuba navigate this issue remains to be seen. If the President adopts 76(3) to form a new government, he is likely to be dragged into the controversy so he is likely to take a few days to consult with legal experts. 

Political parties and legal experts are divided on the government formation process. The President may consult legal experts and is likely to call on parties to form a government based on Article 76 (2), as there are precedents. However, any decision by the President is likely to be challenged in the Supreme Court, making the coming week crucial.

As the NC and UML prepare to form a new government, there is speculation about potential ministerial appointments. Within the NC, rumors suggest that Deuba’s wife, Arzu Rana Deuba, might become the foreign minister, and Ramesh Lekhak might become the home minister. Formal discussions to select ministers are likely to be limited, with Deuba making final decisions in consultation with senior leaders Shekhar Koirala, Gagan Thapa and Krishna Prasad Sitaula.

On the UML front, although there are standards for selecting ministers, past records show these are rarely implemented. Ultimately, Oli, who maintains strong control over the party, will finalize the list of ministers. The number of fringe parties joining the NC-UML government remains uncertain, but their support might be crucial for constitutional amendments.

The issue of constitutional amendments has stirred political circles. Oli has clarified that while there is a tentative agreement on amendments, no specifics or agreements on forming a commission for this purpose have been reached. NC General Secretary has stated that amending the Constitution requires a broad consensus from all political parties.

Next week will be hectic for politicians as they work to form the government and select ministers. NC and UML leaders have already started informal preparations for the new government’s policies and priorities. Both parties face the challenge of quickly forming the cabinet to avoid public pessimism. Deuba and Oli need to work diligently to maintain party unity, as dissatisfaction with ministerial appointments could lead to government collapse. A democratic and consultative approach is essential for managing internal party differences and ensuring the government’s longevity. Coordination between the government and party is key, and Oli and Dahal must make their collaborative efforts more effective. Although the agreement between NC and UML is promising, the lack of internal consultations and discussions may hinder its success.

Another notable story this week was the expulsion of Mukul Dhakal as the RSP general secretary for alleged disciplinary violations, though he remains an ordinary member. Dhakal responded to the party’s decision by holding a press conference where he accused party chair, Rabi Lamichhane, of passport fraud and misappropriation of cooperative funds. Opinions on Dhakal’s expulsion are divided, with some viewing it as growing  political intolerance within the RSP and others seeing Dhakal’s behavior as anarchic. Dhakal’s expulsion and his allegations come as a huge blow to the emerging party that enjoys considerable public support.

In provincial politics, all provincial governments except Koshi and Madhes are set to undergo another shakeup following the NC-UML alliance. The UML has already withdrawn its support for the provincial governments in Lumbini and Bagmati provinces. Forming new provincial governments may take time as the NC and UML focus on the federal government.

Meanwhile, the monsoon season has brought heavy rains, causing floods and landslides that have blocked highways and disrupted transportation, leading to a spike in vegetable prices in Kathmandu. Kanchanpur experienced severe flooding on July 8, recording the heaviest rainfall in 78 years. A government representative has been sent to investigate the situation, highlighting the impact of climate change on rainfall patterns.

Also this week, a parliamentary committee traveled to Pokhara to investigate alleged corruption in the construction of Pokhara International Airport. The Commission for the Investigation of Abuse of Authority is already conducting its own investigation. It’s crucial that this issue is handled impartially to avoid politicization. The newly constructed airport in Bhaktapur’s Nalinchowk also drew attention this week, as pilots refused to fly there due to security concerns, indicating haphazard infrastructure development without proper study.

That’s all for this week. I’ll be back with more updates next week. 

Have a great weekend!

This year’s monsoon season has once again exposed the glaring shortcomings in the government’s disaster preparedness and response mechanisms. With more than 80 lives lost, hundreds injured and thousands displaced across the country in just the first month of monsoon rains, it is clear that the authorities have failed to learn from past experiences and implement effective measures to mitigate the impact of annual floods, landslides and other disasters.

Police say 161 houses are submerged in floods, 138 houses are damaged, 54 animal sheds are destroyed, 41 bridges have collapsed, and 2,764 families are displaced due to various disaster incidents. The fact that such extensive damage occurs year after year reflects the government's inability to address this recurring issue. According to the National Disaster Risk Reduction Management Authority, 92 people died due to monsoon-related disasters last year. Likewise, 30 went missing and 168 sustained injuries in different incidents. A total of 459 landslide incidents, along with 142 cases of flooding, 168 instances of heavy rainfall and 113 reports of lightning in 2023.

Experts have raised questions about the rainfall forecasting capabilities of our authorities. Although there is now a system to send alerts to people whenever water levels in major rivers rise, there is no such mechanism for other disaster events. Infrastructure development in Nepal has also been shortsighted. The collapse of 41 bridges and damage to roads not only highlight a lack of resilient infrastructure but severely hamper rescue and relief efforts, isolating affected communities when they need help the most. This points to a systemic failure in planning and executing infrastructure projects that can withstand the country’s challenging topography and climate.

Moreover, the government’s disaster response appears reactive rather than proactive. The focus seems to be on search and rescue operations after disasters strike, rather than on preventive measures and community preparedness. While the efforts of rescue teams are commendable, a more proactive approach could save more lives and reduce the scale of devastation. As Nepal faces the increasing challenges of climate change, the need for effective disaster management is more pronounced than ever. The government must act now to prevent future tragedies and protect its citizens from the devastating impacts of natural disasters.

Non-banking assets of banks and financial institutions (BFIs) have increased significantly as their non-performing loan (NPL) levels rise.

A recent report by the Nepal Rastra Bank (NRB) shows that NPL levels of banks and financial institutions currently stand at 3.98 percent. Consequently, non-banking assets of commercial banks have increased by over Rs 15bn in a one-year period. Banks and financial companies (BFIs) have Rs 27.6bn worth of non-banking assets as of mid-May, compared to Rs 15.77bn worth of non-banking assets in mid-May 2023.

A large share of such assets is with commercial banks. According to the NRB, 20 Class ‘A’ banks in the country have Rs 23.74bn worth of non-banking assets, which is about Rs 10bn more than the Rs 13.19bn worth of non-banking assets they held in mid-May 2023.

Similarly, development banks have Rs 2.51bn worth of non-banking assets, up from Rs 1.7bn worth of such assets in mid-May 2023. Likewise, finance companies have Rs 1.34bn worth of non-banking assets. The Class ‘C’ companies had non-banking assets worth Rs 793m in mid-May 2023.

Non-banking assets are properties acquired by banks and financial institutions (BFIs) in settlement of their debts. When a borrower is unable to repay the loan in cash, banks seize properties pledged as collateral against such loans. BFIs are required to dispose of such assets at the earliest to convert these non-cash assets into cash assets for their regular banking business.

The central bank requires BFIs to set aside a provision equal to 100 percent of the asset’s value from the moment they acquire non-banking assets to mitigate risk. This requirement has led to an increase in the banks’ provision amounts.

Bankers are under stress due to the increase in non-banking assets. They have not been able to sell off these properties despite publishing auction notices repeatedly. The slowdown in real estate transactions has further aggravated the situation for them. 

Meanwhile, the existing land ceiling regulations have created problems for banks in acquiring such assets.

NRB preparing to open ‘Bad Bank’

The central bank has begun preparations to open a bad bank for the management of non-banking assets with different BFIs.

Speaking at a program recently, Governor Maha Prasad Adhikari said the central bank was drafting the necessary policies for establishing a bad bank.

A bad bank is an entity set up to buy the bad loans and other illiquid holdings of BFIs. BFIs holding significant non-performing assets can sell these assets to the bad bank at market price, which will give them liquidity to focus on their banking business.

The central bank has concluded that an asset management company should be established through specialized legislation. Stating that a bad bank would become a real estate company if it were to open under existing laws, the central bank has been advocating for the creation of an entity with special capabilities.