Submit your Article

Nepal’s governance and government crisis is epitomized by pervasive corruption, particularly within major infrastructure projects and public procurement systems. High-profile scandals such as the Teramox controversy, the Widebody aircraft procurement debacle, irregularities in the Sikta irrigation project and land scams involving Lalita Niwas, Balmandir (Naxal), and the Bansbari Leather Shoe Factory demonstrate deeply-entrenched graft within state institutions. These cases reflect systemic weaknesses in accountability, where political patronage and institutional lethargy shield high-level offenders from prosecution. 

The Financial Action Task Force’s (FATF) decision to place Nepal on its gray list underscores the state’s failure to implement adequate legal and structural reforms against money laundering and terrorist financing. As reported by the Economic  Times (3 March 2025), Nepal’s governance deficiencies marked by weak leadership, rampant corruption and fiscal mismanagement under Prime Minister KP Sharma Oli’s administration have exacerbated socio-economic vulnerabilities, further undermining public trust and economic stability. Notably, large-scale infrastructure projects, such as the Pokhara and Bhairahawa International Airports, have been marred by financial scandals. 

Despite its mandate, the Commission for the Investigation of Abuse of Authority (CIAA) has failed to hold powerful actors accountable, instead prioritizing minor infractions—a practice that reinforces a culture of impunity. The pervasiveness of corruption across government tiers has stifled development, crippled public service delivery and eroded administrative efficiency. Macroeconomic consequences include stagnant agricultural productivity, sluggish employment growth, declining tourism and diminished global competitiveness. 

The lack of robust oversight mechanisms has deepened governance paralysis, necessitating urgent institutional reforms to restore accountability, strengthen anti-corruption frameworks and rebuild public confidence in Nepal’s governance architecture.

Education sector

The education sector starkly illustrates this broader pattern of institutional failure. Recent weeks witnessed widespread teacher protests, with teachers marching from Maitighar to New Baneshwor demanding reforms aligned with Nepal’s federal framework and tangible improvements in educational quality. Despite repeated promises, successive political regimes have deprioritized educational development. This neglect has entrenched a branched education system of deteriorating public institutions on one side, and politically patronized private schools on the other. This failure is not merely a matter of policy oversight; it constitutes an existential threat to Nepal’s long-term development trajectory.

The central bank

One glaring example of Nepal’s institutional decay is the protracted failure to appoint a Governor, leaving the country’s central monetary regulator leaderless in contravention of the NRB Act. This statute explicitly mandates continuous leadership to safeguard monetary and financial stability. Yet political elites mainly from ruling parties have prioritized factional negotiations over institutional integrity, severely undermining the credibility and autonomy of the central bank. This leadership vacuum is symptomatic of a broader collapse in basic governance, extending the crisis well beyond corruption to a fundamental breakdown of institutional functionality. If left unaddressed, the erosion of the NRB’s authority could trigger long-term repercussions for monetary, financial stability and macroeconomic governance.

Farms, industry, tourism

Despite remaining an agrarian economy—where over 60 percent of the population relies on agriculture, which contributes 21.33 percent to GDP (NRB, 2024)—Nepal continues to face constrained agricultural productivity. In FY 2080-81 (2023-24), agricultural credit totaled Rs 347.84bn, yet output remains insufficient. Industrial capacity utilization is alarmingly low at 48.3 percent, even as industrial loans amount to Rs 1,580.10bn (NRB, 2025). Tourism remains a key sector, with 1.15m arrivals recorded in FY 2080-81 (2023-24), primarily from India (26.69 percent) and China (8.8 percent). However, the inclusion of Nepali diaspora holding foreign passports skews official data. While Chinese arrivals surged by 67.35 percent, and third-country visitors rose by 14.4 percent, the sustainability of this sector remains uncertain without accurate data and strategic planning.

Trade imbalance and fiscal risks

Nepal’s trade deficit is structurally unsustainable. Imports reached Rs 1,592.98bn, vastly outstripping exports of just Rs 152.36bn in FY 2023-24 (NRB, Feb 2025). Trade with India dominates (65 percent of volume), with imports from India at Rs 996.68bn compared to exports of Rs 103.18bn. Other key import sources include China (18.76 percent), the UAE (1.83 percent), and Ukraine (1.19 percent). Meanwhile, major export markets include the United States (11.36 percent), Germany (4.45 percent), and the United Kingdom (3.08 percent). Government expenditure patterns reveal further vulnerabilities. In FY 2022-23, consolidated spending rose by 11.1 percent to Rs 11,656.07bn, with current expenditures comprising 56.3 percent vastly outpacing capital investments. Debt servicing costs surged by 38.9 percent to Rs 196.23bn, pushing the federal deficit to 9.33 percent of GDP and the debt-to-GDP ratio to 46.75 percent by mid-April 2025, signaling mounting fiscal distress.

Labor drain and collapse of domestic opportunity

Chronic economic stagnation has fueled mass labor migration. In a single year, approximately 1.2m individuals, 661,125 men and 80,172 women sought foreign employment under formal permits. This exodus reflects a profound failure of domestic policy to generate employment or develop import-substituting industries. For instance, a young agricultural entrepreneur in Dang, cultivating capsicum and eggplant varieties on over two hectares of land, was forced to cease operations due to unsustainable competition from cheap, unregulated imports priced below Rs 20 per kilogram.

A national dairy survey reveals that local producers are increasingly uncompetitive against uncontrolled imports from porous borders, discouraging domestic investment. These examples point to systemic negligence of the government: Nepal possesses “immense” agricultural and industrial potential, yet policy inconsistencies, bureaucratic inefficiencies and pervasive rent-seeking have stifled productive initiative.

Entrepreneurial disincentives

Nepal’s seemingly comprehensive business regulatory regime is fundamentally undermined by flawed implementation. Regulatory bodies routinely impose opaque, obstructive barriers that actively deter entrepreneurial activity. Empirical evidence from a national survey of female-led MSMEs reveals that entrepreneurs face delays of six months to a year in accessing small business loans. Respondents likened banks to ‘institutionalized moneylenders’, citing predatory practices and bureaucratic obstruction. These structural barriers suppress innovation and perpetuate reliance on remittances. The federalization process has further exacerbated fiscal disparities. 

FCGO (Financial Comptroller General Office) data for FY 2022/23 shows provinces receiving just 10.8 percent (Rs 204.68bn) of total expenditure, while local governments account for 27.4 percent. Alarmingly, only 26.39 percent of provincial funds reach local bodies. Furthermore, 62.74 percent of local expenditure is recurrent, severely crowding out capital investment (37.16 percent). Instead of enabling autonomous governance, federalism has become an instrument for partisan patronage. Political interference has hollowed out subnational politics, converting them into appendages of central party structures rather than engines of localized development.

Patronage and rent-seeking

Public subsidies and incentives intended to support entrepreneurship have been systematically captured by connected political elites. Rather than promoting business growth, the pro-business policy framework has devolved into a rent-seeking regime, requiring illicit payments for access to government support. This corrupt system distorts market competition, disadvantages legitimate enterprises, and sustains Nepal’s import dependence and labor migration. The key political elite in Nepal have eschewed genuine labor, instead sustaining their opulent lifestyles through entrenched rent-seeking practices and earning through illicit transactions. This has eroded the nation’s work ethic and severely undermined its culture of entrepreneurship. 

These dynamics have yielded chronic underinvestment in capital expenditure, constrained productive capacity, failed import substitution and a sustained exodus of the working population. Without radical institutional reforms, Nepal’s economic trajectory will remain locked in this dysfunctional equilibrium. Necessary reforms include depoliticizing subnational politics, streamlining regulatory processes, allocating subsidies based on merit/performance, enhancing capital budgeting and enforcing fair trade protections.

Conclusion

Nepal’s economic stagnation is not the result of resource scarcity but of deep-rooted governance failures. Endemic corruption, bureaucratic inertia and institutionalized inefficiencies have crippled domestic production and eroded entrepreneurial confidence. The solution lies not in piecemeal policy adjustments, but in a transformative overhaul of the governance system anchored in accountability, transparency and institutional integrity. Also, it utterly requires the phasing out of recycled political elites. Only through such a systemic reconfiguration can Nepal hope to escape its current developmental storm and achieve a resilient, inclusive and self-sustaining economy. 

The author is a former chair of the Nepal Stock Exchange and was a PhD Research Fellow at the University of Basel 

The Chitwan National Park is home to 92 percent of Nepal’s greater One-horned Rhino population. The latest rhino count of 2021 reports 694 out of 752 individuals. To sustain mega herbivores like the rhino, grasslands play an important role by balancing the natural ecosystem and providing food and shelter. The rhino, Tiger and the Bengal floricans and other species are thriving inside these grasslands, which support a large number of rare and endangered species. Grasslands help to maintain a balanced ecosystem in nature by providing nutrients and water, and also acting as carbon sinks.

In Chitwan, more than 50 grass species are documented by the Department of National Parks and Wildlife Conservation, including Saccharum ravennae also known as the elephant grass. The major species of Chitwan grasslands include varieties of Saccharum like Kans, Baruwa ghans, munja, narenga etc. Siru ghans, Themeda, Narkat, Masino narkat etc are other grass species here. Dubo, Kuro ghans, Love grass, Karaute ghans are smaller species less than 3m while Themeda and Narkat are tall grass species above 3m from the ground here. With its diverse forest, grasslands and wetlands areas, the park is rich in biodiversity.

During the 1970s, grasslands accounted for 20 percent of the total park area, which came down to 10 percent in four decades. Today, the grassland inside the core area is only 9.61 percent and in the buffer it is 2.06 percent of the total buffer area. Park officials and the national park department have documented 425 grassland patches with a total area of 10497.2 hectares where the core area has 8955.2 hectares covered by grasslands. Among the documented patches, 20 grasslands patches exceed an area above 100 hectares while 106 different patches have an area between 2-5 hectares today. Increase of woody vegetation and invasive species has caused the grasslands inside the park to shrink.

Increasing anthropogenic activities and habitat shrinkage has led to habitat degradation, which demands immediate action for restoration. Siru and Kans are invaded by woody species while anthropogenic and biological invasion has caused the habitat to degrade in the park. Restoration practices help to transform those degraded grasslands.

A yearly report from the park has mentioned that conversion of grasslands and shrubland and then shrubland to forest is another cause of shrinkage of grasslands in western and southern parts of the park. The floodplains are mainly colonized by mixed riverine forests of khayer and Sissau. However, riverine tree species like Vellar, Simal, Jamun, Kyamuna and Sindure are also associated with the lowland grasslands.

To enhance the reduced grasslands, habitat restoration is the best immediate and long-term action to sustain the balanced ecosystem. Restored habitat can contribute to rhino movement activities inside the parks. For example, grasslands in Chhaparchuli, Gundremundre, Milijuli, Janakauli, Chitrasen, Chhapar Chhuli Road site clearance, Jayamangala, Bankatta, Arna enclosure, Marchauli, Patana Marsh, Hattikhet, Gaur Machan, Dumariya Post, Simal Ghole, Kachuwani Machan and other sites of the park areas are under the management of National Trust for Nature Conservation(NTNC) in close collaboration with CNP from 2021 to 2024. This has had a positive impact on animal movement in those areas. The park’s yearly report mentions that NTNC has managed more than 500 hectares of grassland during the last two fiscal years.

The degraded grassland has been restored after systematically removing the invasive species. The restored habitat showed a good result with suitable grazing lawns for the herbivores. With support from the International Rhino Foundation (IRF), NTNC has succeeded in creating a fresh grazing lawn. Previously 104 rhinos were counted in those areas; now their number has reached 172 according to the recent internal monitoring of Rhino by NTNC technicians. The improved habitat conditions for rhinos has also benefited other wildlife, including tigers, leopards and herbivores such as sambar and gaur.

Combating invasive species

The spread of invasive species like Mikania micrantha, Lantana Cammara and dense growth of tall grasses such as Saccharum spp and Phragmites karka have further reduced available grazing space to the herbivores. Invasive species prevents rhinos from accessing nutritious forage thereby decreasing the quality of grasslands. This has led the species to compete with limited resources ultimately increasing the risk of intraspecific fights. To overcome this problem, two approaches were adopted for removing these weeds. Mechanical cutting using specially equipped tractors and manual uprooting of invasive species.

Mechanical cutting provides the systematic approach to control the height of dominant species while manual removal allows for targeted management of specific areas. This strategy has shown a positive impact in maintaining open grazing lawns, thereby increasing the species regeneration. With this activity, enhanced habitat quality has also facilitated the presence of apex predators like tigers and leopards alongside the dispersal of sambar and gaurs within the intervened areas.

Camera trap survey and ID base rhino tracking has been carried out within the managed grassland, which has confirmed the rise in rhino occupancy in the restored habitat. The camera traps survey helped monitor the animal movement, distribution and population dynamics with the response to grassland management activities. Management interventions in Padampur, Icharni and Chhaparchuli areas have helped to increase the habitat suitability for rhinos but also for other herbivores. Increasing the biomass of palatable grasses also plays an important role in reducing the nutritional stress and associated mortality in the rhino population.

The grass cutting was implemented biannually-during winter months (Jan-March) and again in the pre-winter (Oct-Dec) across all intervening habitats. The increased presence of herbivores in the restored areas has attracted apex predators. Camera trap data from the Icharni and Kumrose regions confirm an increase in tiger and leopard activity indicating a healthy ecosystem in the intervention area. The connection between habitat management and predator movement is interlinked. To sustain both rhinos and tigers in Chitwan, investment in habitat restoration is crucial.

Communities against threats

Long-term conservation success requires continuation of habitat management activities which demands community participation. In this intervention, NTNC engaged Buffer Zone User Committees (BZUCs) and local communities in grassland management. During the manual removal of invasive species, local people get alternative livelihoods. This not only benefits wildlife but also helps to gain community support in conservation.

However, the threat still exists. March-April is the season of forest fire in most parts of Nepal. People burn the grass with the expectation of new palatable grass shoots during this time, but it has created destructive problems in many parts of forest and buffers due to lack of controlled measures. However, early fire during winter helps to promote nutritious new sprouts of grasses. Uncontrolled grazing of livestock can create foraging grass shortage which may lead to conflict.

Grasslands are also threatened by several other reasons including infrastructure development and wetlands construction. Haphazard construction of buildings, roads etc not only reduces and degrades the grassland habitat but also has far-reaching effects through colonization of invasive weeds and degradation of ecosystems. Introducing new cutting-edge technology helps to timely remove weeds.

Healthy grasslands 

Studies on the species composition and periodic monitoring of grasslands are necessary for a healthy grassland ecosystem. Also, seasonal flooding during the monsoon limits the window for habitat management. If we want to re-establish native species in the areas we need a continuous intervention for grassland management. Additionally, human-wildlife conflict is a major issue where some rhino deaths are linked to electrocution and poaching. To these efforts, rhinos of Chitwan have a better chance of survival if such interventions continue.

At the same time, climate change has altered the habitat and is a major issue of water scarcity. This demands additional interventions like construction of waterholes, climate-friendly infrastructure, research and outreach activities inside the area. Managing wetlands is another important factor for the creation of a healthy and balanced ecosystem.

The author is a conservation officer at the National Trust for Nature Conservation

“Misinformation or distrust of vaccines can be like a contagion that can spread as fast as measles.”
– Theresa Tam, chief public health officer, Canada

In an age of unprecedented medical advancement, the resurgence of measles, a disease once nearing global elimination, is both disheartening and alarming. It stands as a stark reminder that scientific breakthroughs alone cannot defeat disease; public trust and unified action are equally essential. Measles, a highly contagious illness, had been declared eliminated in the United States in 2000 and in several European countries by 2016, following decades of successful immunization campaigns. Yet today, outbreaks are surging across globally.

This resurgence is not due to a failure in medical science, but rather a growing crisis in public perception fueled by misinformation, distrust in health systems and increasing complacency. Despite the proven safety and effectiveness of vaccines like the MMR (measles, mumps, rubella), vaccine hesitancy has weakened herd immunity, allowing the virus to spread rapidly, especially in under-vaccinated populations. In essence, fear and falsehoods have become nearly as infectious as the disease itself.

According to the US CDC, measles is an acute viral respiratory illness marked by high fever, cough, runny nose, red eyes and red rash appearing 7–14 days after exposure. It’s caused by a single-stranded, enveloped RNA Morbillivirus virus, with humans as its only natural hosts. Measles spreads through respiratory droplets when an infected person coughs or sneezes. Up to 90 percent of susceptible individuals in close contact with an infected person can get infected. The virus can remain airborne or survive on surfaces for up to two hours, making transmission possible even after the infected person has left the area.

While measles can affect varied ages, it poses the highest risk to infants and children under five and immunocompromised (pregnant women, leukemia, HIV-infected) individuals. Complications include ear infections and diarrhea, while severe complications include pneumonia, encephalitis and death. Out of every 1,000 children infected with measles, up to three die due to respiratory or neurological complications.

Laboratory confirmation is key for diagnosing sporadic measles cases and outbreaks. Diagnosis typically involves detecting measles-specific IgM antibodies in serum and RNA via RT-PCR in respiratory specimens. Collecting serum and nasopharyngeal swab at the first patient contact is recommended. Viral molecular genotyping aids in tracing transmission and distinguishing between wild-type infections and vaccine-related rashes, thereby playing a vital role in outbreak control and epidemiological surveillance.

Global reawakening
Despite the availability of a safe and affordable vaccine, measles remains a serious global health threat. In 2023, the WHO reported 10.3m measles cases globally, with an estimated 107,500 deaths, primarily among unvaccinated or under-vaccinated under-fives. In India alone, measles claims around 49,000 young lives each year. The European Region experienced its highest case count in over 25 years, with 1.27 lakh hospitalizations reported in 2024. Romania recorded 30,692 cases amid low vaccine coverage (62 percent), while Kazakhstan reported 28,147 cases with coverage below 80 percent. Notably, Kazakhstan’s measles cases surged from just four in 2010 to over 28,000 in 2024. According to Akhmetzhanova et al., 35 percent of Kazakhstani respondents expressed vaccine hesitancy, with 22 percent wrongly linking vaccines to autism, undermining immunization efforts and endangering vulnerable populations.

In the US, as of April 17, 800 measles cases were confirmed across 25 states, threefold higher than in 2024. Ten outbreaks were reported, with 94 percent of cases outbreak-associated. Alarmingly, 96 percent of infected individuals were unvaccinated or of unknown status. Texas was the hardest hit with 597 cases, largely in undervaccinated communities. Tragically, two unvaccinated children in Texas and one adult in New Mexico died from measles complications.

Historically, measles has caused devastating pandemics. In 1529, an epidemic in Cuba killed two-thirds of the indigenous population that survived smallpox. In 1531, half of Honduras’ population was wiped out by the measles epidemic, underscoring the deadly legacy of measles when vaccination rates faltered.

Resurgence in Nepal
From January to August 2023, Nepal recorded 1,013 measles cases, a tenfold increase compared to 2017. The highest case counts were reported in the Tarai. Although Nepal achieved 90 percent MMR vaccine coverage by 2019, the Covid-19 pandemic disrupted routine immunization, contributing to a resurgence in 2023–2024.

Vaccine hesitancy
Globally, measles vaccination has prevented over 60m deaths between 2000 and 2023. To achieve herd immunity, the CDC recommends 95 percent coverage with two MMR doses, administered at 12–15 months and 4–6 years of age. However, between 2000 and 2017, global two-dose MMR coverage plateaued at just 67 percent, far below the threshold needed to prevent outbreaks.

Despite its 97 percent effectiveness and proven safety, MMR vaccine hesitancy remains a formidable challenge. Defined as the delay or refusal of vaccination despite availability, hesitancy stems from cultural beliefs, misinformation, distrust and socioeconomic barriers. A key driver is the debunked Lancet study (Wakefield et al 1998) falsely linking MMR to autism. Although retracted in 2010 for ethical violations and debunked by multiple large-scale studies, its impact endures, amplified by social media.

As the saying goes, “A lie can travel halfway around the world while the truth is still putting on its shoes.” Common myths “natural immunity is better” or “vaccines contain harmful chemicals” continue to circulate, despite evidence that measles can be life-threatening and vaccine ingredients are safe and rigorously tested.

Achieving 95 percent MMR coverage is vital, not only for individual protection but also to safeguard those who can’t be vaccinated due to age or medical reasons. Herd immunity limits the spread of measles, preventing large-scale outbreaks.
Nepal has made progress in expanding immunization, yet challenges remain, particularly in remote and underserved areas. To improve coverage, Nepal must disseminate evidence-based authentic information to counter misinformation, engage local communities to build trust and strengthen policy measures, including school-entry vaccination requirements.

As the saying goes, “Vaccines don’t save lives; vaccinations do.” A sustained, multipronged approach is essential to safeguard vulnerable populations and prevent future outbreaks.

The Constitution of Nepal has stipulated the right against child marriage as a fundamental right. Nepal is also a party to various international treaties against child marriage. In this sense, it falls within the theoretical scope of human rights. According to the existing laws of Nepal, marriage under the age of 20 is defined as child marriage. There is also a provision for imprisonment of up to three years and a fine of up to Rs 30,000 for those who commit marriage-related offenses, including child marriage. These provisions notwithstanding, instances of child marriage are not hard to find in Nepal.

An alarming picture

According to the statistics of the Nepal Police, in 2022, 52 complaints related to child marriage were registered in Koshi province, 10 in Madhes province, 10 in Bagmati province, five in Lumbini province, 10 in Sudurpaschim province, two in Gandaki province and nine in Karnali province.

These figures are merely representative records. Whether it is the parents who get their children married off to avoid responsibility or the children themselves opting to tie the nuptial knot, there is a widespread practice of covering up child marriages in families or societies by not filing complaints.

Therefore, it’s no surprise that Nepal still has a sizable population that disregards the minimum marriageable age and sees marriage only as a matter of obligation, maybe because of illiteracy also.

According to the 2011 census, child marriage, which stood at 27 percent, came down to 21 percent (per the 2021 census). One can take a little bit of solace in these data. Still, child marriage remains a matter of concern with rural and marginalized communities still opting for it in the name of tradition and culture.

I myself had the pathetic experience of child marriage, so I am committed to playing a concrete role in reducing child marriage by empathizing with the overall development of girls from ordinary families. A resolution registered in the House of Representatives aims to initiate a concrete and diagnostic debate on the abolition of child marriage in Nepal. It is necessary to debate whether the abolition of child marriage is possible, not its reduction.

In our society, child marriage is not limited to any specific community or geography; it has spread throughout the country, depriving the children, first and foremost, of their right to education.

No matter how strict the law is, traditional thinking and socio-economic environment encourage child marriage with factors like poverty, inequality, lack of education and gender discrimination all playing their respective parts.

Various researches show that child marriage increases the risk of early pregnancy, maternal mortality, malnutrition, school dropout rates and violence. It is also a subtle and distorted form of gender violence. Child marriage is both a cause and a consequence of poverty.

In terms of the right to education, child marriage effectively ends the formal education of children. Child marriage in lower and middle-class families leads to the compulsion to have children and shoulder the responsibility of parenthood. Not only this, most of the men and women, who marry at an early age, have their decision-making capacity diminished, which impacts their participation in the ‘economic cycle’ necessary to sustain the life cycle.

On account of factors like these, 193 countries expressed commitment to the United Nations’ Sustainable Development Goals (SDGs) and set various goals with 17 indicators to set global development priorities by 2030, in 2015. ‘Target 5.3’ under the SDGs talks about ending child marriage within the deadline.

We have enacted laws against child marriage but our campaigns and programs aimed at ending this scourge do not seem to have reached sections of the society that are lagging behind in terms of human development indexes like literacy. We need to be more serious vis-a-vis child marriage, also to achieve SDGs by aligning our efforts with the United Nations and various donor agencies working to end child marriage. 

With all three tiers of the government—central, provincial and local levels—lacking a clear vision, will we be able to achieve these goals within the deadline for SDGs? 

The way out

Let’s make it mandatory for every youth to obtain an ‘adult registration certificate’ from the ward office of the concerned municipality for marriage upon completing 20 years of age. This kind of arrangement can bring about desired positive changes. Just as the state provides birth certificates, citizenship or other official documents, our policy initiative should be toward making it mandatory to obtain an adult registration certificate from the ward before marriage after attaining the minimum marriageable age. Some local levels appear to have implemented this system, which is quite commendable. A legal system governing this throughout the country will make way for its integrated implementation and a measurable impact. 

The author is a lawmaker