Nepal’s Osaka expo embarrassment
It has been over a week since the World Exposition opened in Osaka, where an estimated 28m visitors are expected over the six-month event. Among the 158 participating countries—including Nepal—nearly all have set up their pavilions. However, Nepal failed to open its pavilion on the inauguration day (April 13) due to construction delays, exposing governance shortcomings.
The delay stems from a dispute between the Nepali government and the contractor. Two years ago, the government selected a private company to construct the pavilion, yet poor coordination and unresolved issues prevented its timely completion.
Jitendra Basnet, spokesperson for the Ministry of Industry, Commerce and Supplies, cited cost overruns, budget shortages and logistical lapses as key reasons for the delay but declined to provide further details. Other officials also refused to comment.
A senior official involved in the project, speaking anonymously, revealed that the conflict arose over payment procedures. Nepal Rastra Bank required contractors to pay a 30 percent tax before transferring funds from Japan, which the contractor refused. Visa complications further stalled progress. “Despite two years of preparation, we couldn’t complete the pavilion—it’s embarrassing,” the official admitted.
Government authorities are now scrambling to resolve the dispute and open the pavilion soon. Durga B Subedi, Nepal’s Ambassador to Japan, said he would assess the situation in Osaka next week before commenting. Meanwhile, it remains unclear whether Nepal will have high-level representation at the expo.
The Nepal Pavilion was intended to showcase the country’s cultural heritage, natural beauty and other attractions. With 119,000 visitors on opening day—and other nations’ pavilions drawing large crowds—the delay could hurt Nepal’s tourism and economic prospects at the event.
Held at Yumeshima (“Dream Island”), a reclaimed industrial site in Osaka Bay, the expo—with the theme “Designing Future Society for Our Lives”—features futuristic exhibits from over 160 countries and organizations across 80 uniquely designed pavilions. This is Osaka’s second expo after the hugely successful 1970 , which set a record with 64m visitors until Shanghai’s 2010 event.
A natural pathway to net zero carbon
As Nepal advances toward its climate commitments under the Paris Agreement and national plans, one target stands out as both urgent and ambitious: achieving net zero carbon emissions. This goal, though complex, is not impossible—especially if Nepal harnesses one of nature’s most powerful, yet often overlooked, climate allies: the Vetiver grass system.
With rising temperatures, rapidly melting Himalayan glaciers, unpredictable monsoon patterns, and an alarming increase in landslides and flash floods, Nepal is already living the harsh realities of climate change. While industrialized countries focus on energy transition, electric vehicles, and technological carbon capture, countries like Nepal—with limited industrial emissions but high vulnerability—must champion nature-based solutions that are affordable, scalable, and regenerative.
This is where Vetiver grass (Chrysopogon zizanioides) offers a uniquely powerful opportunity. Traditionally known for its use in soil conservation, erosion control, and slope stabilization, vetiver is now gaining recognition as a natural carbon sink. Its dense and deep root system, which can grow over three to five meters underground, allows it to sequester large quantities of atmospheric carbon dioxide into the soil.
Recent studies have shown that Vetiver grass (Chrysopogon zizanioides) has the potential to sequester 15 to 20 metric tons of CO₂ per hectare per year—a rate that rivals or even surpasses many tree-based afforestation projects. What sets Vetiver apart is its rapid growth cycle and its massive, fibrous root system, which penetrates 3 to 4 meters deep into the soil within a single growing season. Unlike trees, which can take decades to reach maturity and store significant carbon, Vetiver achieves measurable carbon sequestration in just months.
The deep-rooted nature of Vetiver is critical: carbon stored below 1 meter in the soil is far less likely to be disturbed by erosion, fire, or agricultural tilling, meaning the captured CO₂ remains stable and locked in the ground for decades, if not centuries. This makes Vetiver not only effective, but a highly reliable long-term carbon sink.
Moreover, the Vetiver System allows multiple planting and harvesting cycles per year depending on climatic conditions and management practices, which further accelerates carbon absorption. Each cycle contributes fresh biomass, organic matter, and root expansion—deepening the soil’s carbon bank.
From a land-use perspective, Vetiver can be strategically integrated into a variety of landscapes to maximize both environmental and economic benefits. On degraded and barren lands, Vetiver plays a crucial role in restoring soil fertility while sequestering significant amounts of carbon. Along flood-prone riverbanks, it stabilizes the soil, reduces erosion, and captures sediment-rich carbon, contributing to cleaner waterways. When planted on road and highway slopes, Vetiver prevents erosion and helps create resilient green corridors. Additionally, when used along agricultural field boundaries, it serves as a protective buffer that not only shields crops from wind and water damage but also enhances carbon storage capacity, supporting sustainable farming practices.
A major advantage of Vetiver is its low maintenance: it requires minimal irrigation, no pesticides, and thrives in poor soils. This makes it ideal for large-scale deployment in Nepal, especially through community forestry programs, local governments, youth cooperatives, and eco-enterprises.
In a time when Nepal seeks to meet its Net Zero Carbon target within the next five years, adopting the Vetiver System at scale could be the most cost-effective, nature-based, and scientifically sound strategy available.
Nepal’s net zero ambition is bold—but it is within reach. In Vetiver, we have a low-cost, high-impact, nature-based solution already tested across different terrains of Nepal. As the world looks for scalable climate solutions, Nepal has the chance to lead by example—not by waiting, but by planting. The Vetiver System is not just about green landscapes; it’s about a green future.
With the goal of achieving net-zero carbon emissions within the next five years, the vetiver system in Nepal shows promising potential. In 2022, Nepal emitted approximately 56.7m metric tons of CO₂ equivalent greenhouse gases. According to studies, vetiver grass can absorb around 15.24 metric tons of carbon per hectare per year. Based on this, Nepal would need to plant vetiver across approximately 333,335 hectares to offset its annual carbon emissions.
To achieve this goal within five years, vetiver would need to be planted on 66,667 hectares of land annually. Out of Nepal’s total 4.1m hectares of arable land, the proposed plantation area represents only 8.13 percent, making it both practical and achievable. To help visualize these facts clearly, a visual infographic has also been prepared, showing how Nepal can realistically achieve its net-zero target using the vetiver system.
To maximize impact, strong policy support and cross-sectoral alignment are essential. The government should formally recognize Vetiver systems within national carbon offset strategies and incorporate Vetiver-based interventions in future updates of Nepal’s Nationally Determined Contributions (NDCs). Additionally, it is crucial to facilitate streamlined carbon credit certification mechanisms, allowing local communities, municipalities, and private firms to access benefits from global carbon markets. By taking these steps, Nepal can accelerate progress toward its net zero targets while simultaneously unlocking significant opportunities for climate finance and green investment.
While carbon sequestration is a central focus, Vetiver offers multi-dimensional value across environmental and socio-economic domains. It plays a vital role in soil and water conservation by reducing erosion, restoring fertility, and enhancing groundwater recharge. In the context of disaster risk reduction, Vetiver strengthens slopes and embankments, offering natural protection against landslides and floods. It also generates livelihood opportunities through its use in handicrafts, essential oil extraction, composting, and livestock fodder. Moreover, Vetiver supports biodiversity and ecological regeneration by reviving degraded landscapes and fostering the growth of native flora and fauna.
Breaking the mental health stigma: Therapy should be a priority, not a privilege
In Nepal, the perception of health remains narrowly confined to physical well-being, while mental health continues to be dismissed as an afterthought. Despite the growing global emphasis on psychological well-being, the discourse on mental health in Nepal remains largely overshadowed by stigma, misinformation, and systemic negligence. The repercussions of this neglect are severe, affecting individuals across all age groups, particularly in underprivileged communities and remote areas where mental health resources are virtually nonexistent. The lack of awareness and accessibility, coupled with deeply ingrained cultural misconceptions, has exacerbated the crisis, rendering mental health care a privilege rather than an essential component of public health.
The mental health crisis manifests itself across different life stages. Children, often burdened with academic pressure and familial expectations, are rarely given the emotional support necessary for their psychological development. Many struggle with anxiety and depression from a young age, yet their distress is either trivialized or attributed to laziness. Adolescents and young adults, grappling with career uncertainties, societal expectations, and the growing influence of social media, face increasing mental health challenges, yet they are often met with dismissive responses such as being told to ‘toughen up’. The situation becomes more complicated for adults who deal with financial burdens, workplace stress, and family responsibilities, with limited avenues to seek professional help.
Among the elderly, mental health issues such as depression and dementia are either misunderstood as a natural part of aging or completely ignored, leaving them in a state of isolation and neglect. The World Health Organization (WHO) estimates that nearly 15 percent of the global elderly population suffers from a mental disorder, a figure that is likely to be higher in Nepal due to the absence of proper mental health interventions.
The situation is even more dire in Nepal’s remote and underprivileged communities, where mental health remains a subject of myth and superstition. Many rural areas lack professional mental health practitioners, forcing those in distress to rely on traditional healers or shamans, whose methods often involve spiritual rituals rather than evidence-based interventions.
A 2021 study published in the Journal of Global Health Reports indicated that over 80 percent of mental health patients in rural Nepal first consult a faith healer before considering medical help, if at all. The lack of accessible mental health services, coupled with a deep-rooted belief that mental health disorders are caused by supernatural forces, discourages individuals from seeking professional care, further entrenching the cycle of suffering and silence.
Despite the increasing prevalence of mental health issues, Nepal’s healthcare infrastructure continues to marginalize psychological well-being. Hospitals and clinics are largely focused on treating physical ailments, while mental health remains a neglected domain within the broader healthcare system. According to the Nepal Health Research Council (NHRC), mental health services account for less than one percent of the total healthcare budget, a stark contrast to the country’s rising burden of mental illness. Unlike physical health checkups, which individuals proactively schedule, mental health concerns are consistently postponed or ignored altogether. Seeking therapy is still widely considered an indulgence rather than a necessity, with many perceiving it as a service reserved for the wealthy or those who are ‘weak.’
One of the primary barriers to mental health care in Nepal is the prohibitive cost of therapy. While a general physician’s consultation may cost a nominal fee, psychotherapy sessions remain expensive and largely out of reach for the average Nepali citizen. A 2022 report by the Nepal Mental Health Foundation found that the cost of a single therapy session in Kathmandu ranges between Rs 1,500 to Rs 3,500, a significant expense for families struggling with daily financial constraints. Given this economic reality, individuals are more likely to allocate their limited resources to immediate physical health concerns, leaving mental health at the bottom of their priority list.
The path forward requires a multifaceted approach that integrates mental health into Nepal’s overall healthcare system and societal framework. Greater investment in mental health infrastructure is imperative, ensuring that psychological services are available at primary healthcare centers across the country. Nationwide awareness campaigns must be implemented to challenge the prevailing stigma and educate individuals on the importance of mental well-being. Moreover, mental health services must be made affordable through government subsidies and the inclusion of mental health coverage in insurance policies. Educational institutions and workplaces should incorporate mental health discussions into their curricula and professional environments, fostering a culture where seeking help is normalized rather than ridiculed.
Nepal cannot afford to continue neglecting mental health. The consequences of untreated psychological distress extend beyond individual suffering, affecting families, communities, and the nation as a whole. To build a healthier and more resilient society, it’s crucial to recognize that mental health is just as vital as physical health. Therapy should not be seen as a luxury but as a fundamental right, accessible to all regardless of socioeconomic status or geographical location. Only through systemic reforms, awareness, and cultural shifts can we dismantle the barriers that prevent individuals from seeking the help they deserve.
ICC U19 World Cup Asia Qualifier: Nepal thrash Hong Kong by nine wickets
Nepal defeated Hong Kong by nine wickets in the ICC U19 World Cup Asia Qualifier on Wednesday.
In the match held at the Lower Mulpani Cricket Ground, Hong Kong, who were invited to bat first after losing the toss, posted 115 runs.
Set 116 to win, Nepal achieved that target for the loss of one wicket in 12. 3 overs.
Nepal's opening duo Shahil Patel and Neeraj Kumar Yadav shared a 50-run partnership in five overs. Patel and Yadav shared a 55-run partnership for the first wicket.
Patel, who remained unbeaten, top-scored for Nepal with 42 runs off 41 balls hitting eight boundaries.
Along with him, captain Naren Bhatta scored unbeaten 39 runs.
Sayan Puri claimed the only wicket for Hong Kong.
Earlier, Hong Kong scored 115 runs in 46. 2 overs losing all the wickets.
Captain Shiva Mathur top-scored for Hong Kong with 63 runs off 116 balls with four boundaries and one six.
Opener Arya Panjwani scored 13, Thomas Hodson 10 and Veer Mathur 12 while other batters failed to score in double digits.
Yuvaraj Khatri took four wickets, Bipin Sharma three, Santosh Yadav two and Ashok Dhami one wicket.
In the first match, Nepal thrashed the UAE by five runs and Hong Kong by eight wickets in the second match.
From aquariums to ecosystems: Exotic pet fish trade threatens Nepal’s native species
In a startling discovery last year, an Ichthyological survey documented the presence of Pterygoplichthys disjunctivus—a species of Sailfin Catfish native to the Amazon—in the Lohandra river of Eastern Nepal. Known for its hardiness and invasive potential, the species has already disrupted ecosystems in India and Bangladesh. Due to the significant ecological impact of Loricariids species, Bangladesh has imposed a ban on any species of the suckermouth catfish group.
As a non-edible species, its presence in natural waters points towards potential source—pet trade. The record of this species has raised serious concerns among conservationists. “The numbers suggest they have already adapted to natural water bodies and monitoring is necessary to determine whether they have become fully invasive or not,” said Jash Hang Limbu, lead researcher of the study.
The aquarium trade link
The Loricariids species, including Pterygoplichthys and Hypostomus, are popular aquarium fish for their ability to clean aquaria by feeding on algae. Sold as “plecos” or “sucker fish”, they are easily available in aquarium stores across the country. When small, they remain mostly at the bottom of aquariums, feeding on algae and detritus. However, these species can escape or are released into natural waters, once they outgrow aquariums. They have the capacity to adapt, which can result in disruption of native aquatic biodiversity.
While the precise route of introduction into the Lohandra River remains unclear, researchers suspect a combination of accidental releases from aquariums and migration from Indian rivers as a potential cause.
Back in 2018, a specimen was recorded at a commercial fish farm in Dhanushadham municipality, and was released into Dhanush pond, a natural pond within Dhanushadham protected forest. “We failed to identify the species. However, it had an eye-catching body structure, so we rescued and released it in the pond,” said Dev Narayan Mandal of Mithila Wildlife Trust.
Recently, two additional sightings were reported, both in commercial fish farms from the same locality. Despite the potential risk of invasion, the fish was released into nearby rivers. “To my information one farmer killed the fish but the other released it in a nearby river,” said Mandal.
The presence of these fish in remote villages far from aquarium shops hints at the possibility of alternative introduction pathways, such as migration from India or accidental release via fish stock imports. In 2024, a specimen was also captured from the Narayani irrigation canal in Bara district.
According to Limbu sailfin catfish have been recorded in irrigation canals and other water bodies in Morang and Jhapa districts in recent surveys as well. He suspects the presence of two species of sailfin catfish (Pterygoplichthys disjunctivus and Pterygoplichthys pardali) in eastern Nepal, although taxonomical identification is difficult.
In both India and Bangladesh—where the fish has invaded ecosystems, the primary source of introduction is the aquarium trade. Limbu suspects that the fish might have migrated from India through inter-connected river systems. As Nepal’s rivers are linked to those in India, the possibility can’t be dismissed.
However, experts like Kripal Datt Joshi, retired principal scientist at Indian Council of Agricultural Research, are sceptical of the migration theory. “Nepal’s rivers are less polluted and fast flowing - conditions that are not congenial for this species,” he said.
Likewise, Loricariids (both Pterygoplichthys and Hypostomus) are known for their ability to breathe air and even show terrestrial locomotion. Experts say considering this adaptive behaviour, the fish may have found alternative dispersal methods.
Growing threat of invasion in Nepal
The pet fish trade is not the only pathway for exotic invasive species in Nepal. Despite the tremendous native fish diversity - 236 indigenous fish species, introduction of exotic fish species started during the 1950s. A 2015 study by Prem Budha, Professor of Zoology, Tribhuvan University, documented 19 exotic fish species in Nepal. However, the list doesn’t include fish species reared in aquariums.
Many were introduced for aquaculture without proper risk assessments. “If such exotic species escape or are released to natural ecosystems they might adapt to the environment, breed, and can become invasive,” said Budha. Species like Tilapia, has already outcompeted native fish in lakes of Pokhara. Recently, rainbow trout—a species listed under “100 of the World's Worst Invasive Alien Species”—has escaped and are recorded in natural waters, said Bharat Babu Shrestha, professor at Tribhuvan University. “It’s time to regulate exotic species, including Tilapia,” said Professor Shrestha.
Ornamental fish industry in Nepal
Nepal’s ornamental fish industry has grown rapidly, with aquarium shops flourishing in Kathmandu, Pokhara and other major cities. “The number of people buying fish has increased in recent years,” said the owner of Hobby Aquarium, one of Nepal’s oldest shops.
However, the customs import data depicts a different story, showing a sharp decline in ornamental fish imports—an ironic contrast to the booming domestic market.
Currently, imports are processed through the Nepal National Single Window (NNSW), where importers must list species name and quantities. “Based on that online application, import permissions are granted,” said Sumitra Laudari, Senior Fisheries Development Officer at Central Fisheries Promotion and Conservation Center (CFPCC).
Aquarium owners reported that importers import fish based on market demand and international availability. Most imports come from India and Thailand, with occasional imports from China, Indonesia, and other east-Asia-pacific countries.
Nepal lacks comprehensive research and a centralized database on aquarium fish imports. Limited studies exist, mostly in Kathmandu and Pokhara. A 2024 study published in International Journal of Biological Innovations journal reported 53 exotic and four native ornamental fish species sold in Kathmandu aquarium shops. Arowana was the most expensive, while Guppy the cheapest.
Professor Budha noted that international trade is a major pathway for invasive alien species globally. “With growing demand, more non-native species are imported, increasing risk of introduction into ecosystems,” he added.
Another concern is “fish liberation”—religious practice where believers release captive live fish into water bodies. “With exotic fish easily available, there’s a high chance non-native species are being released,” added Professor Shrestha.
Weak regulations, invasion risk and conservation concerns
The Nepal Fish Fry Standard 2061 (amended in 2077) lists 144 ornamental fish species allowed for import. However, many unlisted and high-risk exotic species such as Arapaima, Alligator Gar, Redtail Catfish, Pacu, Iridescent Sharks, Giant Snakehead, Red Devil and Peacock Bass are openly sold in the market. Known for their predatory behaviour and rapid growth, these species have caused severe ecological damage in other countries after escaping captivity.
The aquarium trade also threatens conservation efforts. Some IUCN Red List endangered species like Reticulated Hillstream Loach and Bala Shark (Vulnerable) and Red-Tailed Black Shark (Critically Endangered) are easily available in the market, though they are not listed under the Nepal Fish Fry Standard 2061.
Some of these are smuggled from India, often hidden among frozen fish shipments. “The mortality rate is high with such fish, so we avoid purchasing from those sources,” said a Kathmandu-based shop owner. Nepal’s open border and weak import inspection further increases the possibility of such illegal imports.
Officials acknowledge enforcement challenges, citing a lack of technical officers at quarantine checkpoints. “Due to the lack of fishery experts at quarantine centres/posts, these fish species are often not identified correctly,” said Laudari. Ashok Adhikari from the Ministry of Agriculture and Livestock echoed a similar challenge, “Veterinary officers manage quarantine posts, but they often lack the expertise to identify fish species”.
A potential solution: Breeding native ornamental fish
Nepal has significant potential to develop a local ornamental fish industry. The CFPCC and Pokhara’s Fishery Research Station have begun breeding programs.
Though 15 native species with ornamental potential have been identified, only one is currently being bred. “Identifying and developing technologies for breeding native fish species for aquariums could be an important step in reducing import dependency” said Md Akbal Husen, Senior Scientist at Pokhara’s Fishery Research Station. For instance, River stone carp (Psilorhynchus sucatio)—a native algae eater known as “sucatio”, is being imported despite its local presence. Such species, if bred domestically, could serve as an alternative to invasive plecos or sucker fish.
While the domestic production has increased slightly over the past five years, it still doesn’t meet the market demand, said Husen. According to Laudari, efforts are underway to expand breeding programs at CFPCC.
Officials also reported even private breeders are starting to breed exotic species, but their operations remain unregulated.
The way forward
As the spread of invasive exotic fish species accelerates, Nepal must take proactive measures. Nepal has also adopted Kunming Montreal Global Biodiversity Framework (GBF), Target 6 of which aims to reduce the rate of introduction and establishment of invasive alien species by 50 percent, and to reduce/mitigate the impacts of invasive alien species on biodiversity and in ecosystem services. Nepal is currently drafting the National Biodiversity Strategy Action Plan (NBSAP)—a document that translates the global targets into national actions.
The approval of Invasive Alien Species Management Strategy and Implementation Plan 2081 has raised new hope. “This now provides us with a regulatory foundation,” said Professor Shrestha who was involved in drafting the strategy. “Conducting thorough risk assessment—both pre-border and post-border, is crucial in mitigating the risk of invasion” added Professor Shrestha.
“Strengthening technical capacity at quarantine checkpoints is also essential to prevent the entry of invasive exotic species”, emphasized Professor Budha.
Nepal thumb Qatar by eight wickets in T20 Quadrangular Series
Nepal defeated Qatar by eight wickets in the opening match of the Quadrangular T20 Series at Mong Kok, Hong Kong, on Wednesday.
Put to bat first after losing the toss, Qatar scored 151 runs in the allotted 20 overs.
Set 152 runs to win, Nepal achieved the target for the loss of two wickets in 17. 2 overs.
Opening batsman for Nepal, Kushal Bhurtel scored highest 32 runs off 19 balls, with four fours and two sixes.
Bhurtel and Asif Sheikh scored 81 runs in partnership for the first wicket. Sheikh scored 33 runs.
Captain Rohit Kumar Paudel and Wasir Ahmed shared a 62-run partnership for the third wicket.
Paudel and Ahmed scored unbeaten 37 and 30 runs respectively.
Mujeeb-ur-Rehman took two wickets for Qatar.
Captain Ikramullah Khan was the top scorer for Qatar with 54 runs off 54 balls including fiver boundaries and two sixes.
Similarly, Shahzaib Jamil made 31 runs off 21 balls with four sixes and Arumugaganesh Nagarajan 13 runs.
Likewise, Mujeeb-ur-Rehman scored unbeaten 20 runs off 19 balls and Mohammed Irshad 18 off 7 balls.
Karan KC, Sompal Kami, Gulsan Jha, Nandan Yadav and Lalit Rajbanshi claimed one wicket each for Nepal.
Trump imposes 10 percent tariff on Nepali products
US President Donald Trump announced what he said were “kind” reciprocal tariffs against more than 180 countries on Wednesday, along with a baseline tariff against other countries, delivering the most sweeping tariff package the US has implemented in decades.
The Trump administration has imposed a 10 percent tariff on Nepali products. The United States has granted trade preferential treatment to Nepal, but traders have not been able to benefit from it.
America is a big trade partner of Nepal. Trade Facilitation and Trade Enforcement Act 2015 provides duty and quota free access to 77 Nepali products. Officials say, Nepal government now will have to talk with America to ensure the smooth export of Nepali products in American markets.
Over the past five years the exports of Nepal to the United States have increased at an annualized rate of 4.98 percent, from $110m in 2018 to $140m in 2023.
The United States and Nepal have signed a trade and investment framework agreement, providing a forum for bilateral talks to enhance trade and investment, discuss specific trade issues, and promote more comprehensive trade agreements between the two countries. Principal US exports to Nepal include agricultural products, aircraft parts, optic and medical instruments and machinery. US imports from Nepal include carpets, apparel and jewelry.
The following are the reciprocal tariffs Trump announced on Wednesday. Any countries not on the list will have a baseline 10 percent tariff on any products coming into the US, the administration said.
The tariffs charged to the US include currency manipulation and trade barriers, according to information provided by the administration—though the percentages could not be independently verified.
The Trump administration is using tariffs as a tool to dismantle levies imposed by other countries and create “truly free and open global trade,” a director with The Heritage Foundation, a conservative think tank, told CNN. Richard Stern, director of Grover M Hermann Center for the Federal Budget at The Heritage Foundation, said other countries have deployed trade barriers, subsidized their products and committed intellectual property theft.
President Donald Trump’s historic tariff announcement will have a lasting impact on South Asia, where the US is a top export destination for many countries in the region, analysts say.
The region, which includes the world’s most populous country, India, as well as Pakistan, Bangladesh and Sri Lanka, is “dealing with varying levels of economic stress,” he said. “There’s a lot of vulnerability, and the tariffs will hit hard,” said Michael Kugelman, South Asia Institute Director at The Wilson Center, a US-based think tank.
Nepal’s economy to grow by 4.5 percent
Nepal’s economy is projected to grow 4.5 percent in FY25, up from 3.9 percent in FY24, despite significant natural disasters in late 2024. Growth is expected to be driven by increased domestic trade, hydropower generation and paddy production, according to the World Bank’s latest Nepal Development Update: Leveraging Resilience and Implementing Reforms for Boosting Economic Growth, released on Thursday.
The report also forecasts that Nepal’s economy will grow at an average annual rate of 5.4 percent in FY26 and FY27, driven largely by the services sector.
“Boosting private sector-led economic growth is critical to creating the jobs that Nepal needs. To achieve this, Nepal can build on its impressive track record of resilient growth backed by implementing key structural reforms,” said David Sislen, World Bank Country Division Director for Maldives, Nepal, and Sri Lanka.
The report highlights downside risks to the economic outlook, including geopolitical and trade-related uncertainty. It also points to the potential further deterioration of asset quality in Nepal’s financial sector, the risk of policy inconsistency arising from frequent bureaucratic changes in the government, and delays in the execution of the capital expenditure budget.
“The Nepal Development Update provides valuable insights on recent economic developments and highlights Nepal’s resilient growth. Boosting growth further to meet the country’s 16th Plan targets requires effective execution of the capital budget and timely completion of ongoing projects,” said the Vice-chairperson of the National Planning Commission, Shiva Raj Adhikari. The Nepal Development Update, produced biannually, offers a comprehensive analysis of key economic developments over the past year, placing them within a long-term global context.
US slaps 10 percent tariff on Nepal
As US President Donald Trump has been imposing tariffs on its trading partners worldwide, Nepal could not remain immune to it.
The Trump administration has slapped a 10 percent tariff on Nepal, a developing country in the Asia Pacific region.
Nepal exports mainly readymade garments, woolen carpets, pashmina products, leather products, pulses, handicrafts, spices and floricultural products to the United States.
In 2024, the trade between Nepal and the US was around USD 241. 4 million with Nepal exporting the goods worth around USD 120. 5 million.
Nepal's total exports to the US in November 2024 were USD 8.987 million, compared to USD 14.865 million in October 2024.
In 2023, Nepal exported goods a total of USD 1.21 million becoming 156 exporters in the world.
India ($811M), United States (USD 140 million), Germany (USD 38.8 million), China (USD 28.2 million), and United Kingdom (USD 26.4 million) are the most common destinations for exports of Nepal.
Nepal’s southern neighbor, India, was slapped with a 26 percent reciprocal tariff, which will come into effect from April 9, the White House said in a statement.
The announcement made by Trump to slap a 26 percent tariff on India was his wider plan to impose a 10 percent baseline tariff on all imports from April 5.
Similarly, the Trump administration has also decided to add 34 percent reciprocal tariffs to existing 20% duties on all the goods imported from China, the northern neighbor of Nepal, to the US.
After he assumed the office as the President of the US, Trump had already levied two tranches of 10 percent additional tariffs on all Chinese imports.
Meanwhile, world leaders have criticized Trump’s move to impose tariffs as “major blow”.
The criticism comes a day after Trump announced a universal 10% tariff on all imports into the US from April 5.
Around 60 countries will be hit hard with the tariffs slapped by the US. The decision will come into effect from April 9.
Nepal, Thailand sign eight MoUs during PM Oli's official visit
Nepal and Thailand have today witnessed the signing of various six Memorandum of Understandings (MoUs): two from the government level and remaining six from the non-government side during Prime Minister Oli's ongoing official visit to Thailand.
Before the signing of the documents, Prime Minister Oli and Prime Minister of Thailand, Paetongtarn Shinawatra, held a bilateral meeting
On the occasion, the two exchanged views focusing on political and bilateral relations, trade and economic cooperation, and the cooperation in aviation, tourism, cultural and development sectors. They also addressed issues of regional and multisectoral concerns.
Foreign Minister Arzu Rana Deuba and Thailand's Minister for Culture, Sudawan Wangsuphakijkosol, signed the MoU to promote cooperation in the cultural sector. Similarly, the Foreign Minister and Thai Minister for Tourism and Sports, Sorawong Thienthong, signed the MoU on tourism cooperation.
Other MoUs were signed between Nepal Netra Jyoti Sangh and Mahidol University in Thailand, Janata Agro and Forestry Nepal (JFL) and Kasetsart University in Thailand, the Federation of Nepalese Chambers of Commerce and Industry and the Board of Trade of Thailand, and Kathmandu University and Siam University in Thailand. These understandings aim to enhance bilateral cooperation in their respective fields.
The Confederation of Nepalese Industries (CNI) and the Federation of Thai Industries, as well as the Nepal Chamber of Commerce and the Tourism Council of Thailand, are the remaining non-government parties to sign MoUs.
We are willing to increase investment in aviation and tourism sectors: Thai PM Shinawatra
Thailand Prime Minister Paetongtarn Shinawatra has said that Thailand will increase investment and participation in the aviation and tourism sectors in Nepal.
The Thai premier said this while addressing a joint press conference organized after a meeting with Prime Minister KP Sharma Oli, who is on an official visit to Thailand, here today.
On the occasion, she said Thailand was positive to increase the number of Thai Airlines flights to Kathmandu and direct flights to Lumbini.
Prime Minister Shinawatra expressed her belief that Thailand's investment and trade would be prioritized in Nepal in the energy and tourism sectors such as hotels and aviation would get priority in the days to come.
Noting that the first visit by the Prime Minister of Nepal after 65 years of the establishment of diplomatic relations between the two countries was historic, the Thai PM Shinawatra said that they also discussed ways to enhance connectivity and trade partnership between the two countries.
Nepal-Thailand relations reach new height: PM Oli
Prime Minister KP Sharma Oli, who is presently on the five-day official visit to Thailand, beginning on April 1 has said the visit has contributed to taking the bilateral relations to a new height.
Speaking at a joint press conference held after the bilateral meeting between the Prime Minister and his counterpart Paetongtarn Shinawatra today, the Prime Minister expressed his belief with the visit, the level of mutual cooperation between the two countries in the areas of culture, tourism, education and energy will further increase in the days to come.
Highlighting on the 65-year-long diplomatic ties between Nepal and Thailand, Prime Minister Oli said the meeting focused on further expanding the bilateral ties including diplomatic and the people-to-people relations.
He expressed his hope that Nepal's hospitality business and air services would be the priorities of Thailand for its future investment and trade. "Nepal and Thailand share deeper agricultural, trade, tourism and cultural relations. I call on the business community in Thailand to invest in Nepal," the Prime Minister said.
"Nepal and Thailand have cordial trade and tourism relations. Now, we will work together on an international agenda including climate change," he added.
He said that Thai Prime Minister Shinawatra has been invited to visit Nepal and it will be implemented soon.
The Prime Minister arrived in Bangkok on Tuesday, leading the 21-member entourage to the Sixth Summit of Bay of Bengal Initiative for Multisectoral, Technical and Economic Cooperation. He is the first Prime Minister of Nepal to visit Thailand.
Despite long-standing friendly relations between Nepal and Thailand, the official visit by the Head of Government of Nepal to Thailand had not taken place before.
The then Prime Minister of Thailand Prem Tinsulanonda had visited Nepal in 1983.
The Prime Minister's entourage includes his spouse Radhika Shakya, Minister for Foreign Affairs, Arzu Rana Deuba, Bishnu Prasad Rimal, the Chief Political Advisor to the Prime Minister, Dr Yuba Raj Khatiwada, Chief Secretary Ek Narayan Aryal and Foreign Ministry's Secretary Amrit Bahadur Rai among others.
World Bank approves financing package of $150m to Nepal
The World Bank’s Board of Executive Directors has approved a financing package of USD 150m for Nepal’s Third Bridges Improvement and Maintenance Program (BIMP-III).
The support is to help strengthen the resilience of bridges in the Strategic Road Network, ensuring safer and uninterrupted connectivity across the country’s diverse and challenging terrain.
Nepal’s bridge system serves as critical lifelines connecting remote and urban communities to essential services, including healthcare, education, and economic opportunities. Vulnerabilities caused by frequent climate-induced disasters such as floods, landslides, and earthquakes severely affect the bridge infrastructure.
The program, led by Nepal’s Department of Roads, will focus on climate-resilient measures such as enhanced structural designs and innovative technologies, including real-time monitoring systems to safeguard bridges against extreme weather events. The program will also support bridge designs prioritizing accessibility for all users, connecting marginalized communities to vital services, according to a press release issued by the Bank.
Meanwhile, Division Country Director for Maldives, Nepal, and Sri Lanka David Sislen has said the resilience of Nepal’s bridge network is fundamental for safe and sustained connectivity. This program emphasizes resilient infrastructure development and promoting access to markets and services for vulnerable communities while promoting Nepal’s sustainable growth.
The program includes capacity-building initiatives for the Department of Roads, promoting innovative solutions and strengthening institutional systems for effective infrastructure management.
Turbulent dynamics of Nepal’s political transformation
Nepal’s political evolution, from its unification in 1768 to the establishment of a federal democratic republic in May 2008, has been a tumultuous journey marked by significant milestones and setbacks. This transformation has been shaped by a complex interplay of historical, socio-political, economic, and geopolitical factors. As Nepal stands at the edge of change, it faces a dynamic landscape—some forces pushing it toward progress, while others present formidable obstacles. The country’s political environment remains volatile, uncertain, and ambiguous, with the resurgence of pro-monarchy sentiments adding a new layer of complexity to its democratic experiment.
Resurgence of monarchy
Former King Gyanendra Shah, who abdicated his throne in 2008 to facilitate Nepal’s transition to a secular federal republic, has re-emerged as a focal point in the nation’s political discourse. His recent activities—returning to Kathmandu after spending two months in Nepalganj and Pokhara, and consulting with Uttar Pradesh Chief Minister Yogi Adityanath in Lucknow—have sparked widespread speculation about the possible restoration of the monarchy. Adityanath, a vocal advocate for a Hindu Kingdom in Nepal, has further fueled these discussions. Meanwhile, regional powers like China and India, as well as global democratic forces, are closely monitoring the situation.
The former king’s appeal to the people to rise for the nation has resonated with some segments of society, creating fertile ground for a renewed debate about Nepal’s political future. His message emphasizes national unity, credible democracy, and a renewed sense of identity—elements that are crucial for Nepal’s strategic stability. However, the dysfunctional democracy, characterized by poor governance, corruption, and self-interest, remains a significant obstacle to achieving these goals.
Polarization and elusive stability
Nepal’s democracy is currently caught between two opposing forces: pro-monarchist electorates advocating for the return of the kingdom and republican forces, which have been marred by allegations of inefficiency and corruption. This polarization has left Nepali society deeply divided. While the people yearn for strategic stability, questions linger: Is Nepal ready for change, or is it still awaiting cues from external powers like Beijing, Delhi, or Washington? The current political system, plagued by poor governance and a lack of meritocracy, has eroded national trustworthiness. The intertwined issues of political, economic, and security affairs demand collective solutions, yet time is running out.
The Rastriya Prajatantra Party (RPP), which holds 14 seats in the 275-member House of Representatives, has been vocal in its support for the monarchy. Alongside the Rastriya Prajatantra Party Nepal (RPPN) and businessman turned activist Durga Prasai, the RPP has actively participated in rallies demanding the restoration of the monarchy and the abolition of the federal republican system. Slogans like “We want our King back” and “The King and the country are dearer than our life” have become rallying cries for pro-monarchy supporters.
Republican forces on the defensive
The resurgence of royalist sentiment has alarmed republican forces, who view it as a threat to the federal democratic system. Leaders from the three major parties—former Prime Minister Sher Bahadur Deuba of the Nepali Congress (NC), Prime Minister KP Oli of the CPN (UML), and former Prime Minister Pushpa Kamal Dahal of the CPN (Maoist Center)—have dismissed the pro-monarchy movement as insignificant. However, their own unpopularity, stemming from allegations of institutional corruption, has weakened their stance.
Deuba downplayed the recent pro-monarchy rally in Kathmandu as a “regular event,” while Oli emphasized the need to focus on democratic and constitutional activities. Dahal, on the other hand, criticized both the pro-monarchy forces and the ruling alliance, blaming the government for failing to address public frustration. The Samajbadi Morcha (Socialist Front), a coalition of leftist parties formed on June 19, 2023, is preparing to hold a protest rally on March 28 to defend republican values. Meanwhile, Madhav Kumar Nepal, chairperson of the Unified Socialist Party, has blamed Prime Minister Oli for the resurgence of “reactionary elements” and called for a two-month-long protest to address the country’s political and social issues.
Historical context
To fully understand Nepal’s current political landscape, it is essential to consider its historical context. The Treaty of Sugauli, signed in 1815, reshaped Nepal’s borders and relations with the British Empire, marking the beginning of a long period of external influence and internal struggle. The Rana regime (1846–1951), characterized by hereditary authoritarian rule, further entrenched feudalism and autocracy. The dawn of democracy in 1951, marked by the Treaty of Peace and Friendship with India, laid the foundation for bilateral relations but also sowed the seeds of dependency.
The 1990 People’s Movement (Jana-Andolan) reignited democratic aspirations, but the triangular conflict between monarchist forces, democrats, and Maoists complicated the transition. The 12-point agreement in Delhi in 2005, which brought Maoists into the democratic framework, was a turning point. However, the transition to a federal democratic republic introduced new complexities, including unaccountable leadership and governance challenges.
Fragmentation and governance challenges
Nepal’s political landscape remains fragmented, with multiple parties representing regional, ethnic, and ideological interests. This fragmentation has led to unstable coalition governments and frequent changes in leadership—13 prime ministers in 16 years. The lack of policy continuity and institutional development has further undermined governance. The pro-monarchy movement, while gaining traction, faces internal divisions. RPP Chair Rajendra Lingden has distanced his party from Navaraj Subedi’s People’s Movement Committee, despite senior RPP members joining the mobilization effort. The former king’s attempt to unify pro-monarchy forces under Subedi’s leadership reflects a last-ditch effort to gauge public support for a royal comeback. However, the movement’s success remains uncertain.
The role of civil society and grassroots movements
Civil society, activists, and grassroots movements play a crucial role in driving political transformation. By advocating for transparency, accountability, and civic engagement, they can help bridge the gap between the people and the political establishment. Initiatives aimed at promoting democratic governance, human rights, and social justice are vital for holding the political elite accountable and fostering a culture of active citizenship.
The way forward
Nepal stands at a critical crossroads. The current political system, characterized by corruption, inefficiency, and fragmentation, has failed to deliver good governance. The people’s frustration with the status quo has created an opening for alternative political discourses, including the restoration of the monarchy. However, the success of any political transformation depends on addressing the root causes of instability: poor governance, institutional corruption, and socio-economic disparities.
Reforming the constitution to create a more functional democracy is essential. This includes ensuring greater accountability, transparency, and representation for all citizens. Geopolitical integration can also play a role in supporting Nepal’s democratic aspirations, but it must be approached with caution to avoid external interference.
Nepal’s political transformation is a delicate balancing act. The country must navigate its historical legacies, socio-economic challenges, and diverse aspirations while fostering dialogue and cooperation among stakeholders. The success of this transformation hinges on the ability of political leaders to prioritize democracy, justice, and development over self-interest and geopolitical maneuvering.
As Nepal moves forward, it must strive to unite its diverse voices and create an inclusive political framework. The current system, with its flaws and failures, cannot sustain the nation’s aspirations. Whether through constitutional reform, a national unity government, or a renewed commitment to democratic values, Nepal must seize this moment to redefine its future. The ball is in the court of its political leaders, and the choices they make will determine whether Nepal emerges as a resilient, inclusive nation or remains trapped in a cycle of instability.
The author, a retired Major General of the Nepali Army, is a strategic analyst
Nepali and Chinese officials discuss ways to facilitate trade
Director General of Commerce Department of Xinjiang Autonomous Region of China, Chen Jung, and Consul General of Nepal in Lhasa, Laxmi Prasad Niraula, held a meeting today at latter's office.
During the meeting, they discussed various issues including relations between the two countries as well as business, commerce, transit, trade fair and trade facilitation committee meetings, according to the Consulate General of Nepal, in Lhasa.
Stating that the two countries have historic relations, Consul General Niraula extended gratitude for China's continuous support to Nepal.
He expressed the belief that Nepal will get such type of support in the days to come as well.
Lauding the role played by the Consulate General of Nepal to strengthen relations between the two countries, Director General Chen said China was always ready to support in strengthening relations between the two countries and in Nepal's development.
In the meeting, both sides agreed to further strengthen Nepal-China trade, commerce and transit sector as well as to take initiatives to export Nepal's agro products to China.
Similarly, commitments were made to take initiatives to resolve problems seen in checkpoints, developing physical infrastructures there, exchanging visits, participating trade fairs and festivals to be organized in both countries and moving ahead in a coordinative manner for people's welfare, added the Consulate General of Nepal.
Editorial: Unite against graft
What is corruption? In Nepal, it is so intertwined with our polity that it has become quite hard to differentiate which is which.
In fact, corruption is in the air we breathe, the water we drink, the sun we soak in and the food we cherish. In short, corruption is omnipresent in our lives.
Still, at least for the sake of academics, what does corruption mean? Transparency International (TI) knows better. It defines corruption as the abuse of entrusted power for private gain.
A people reeling under corruption for decades need no report to show how corrupt their polity is. A silent majority, who has seen a clique with modest means become filthy rich within a couple of years or decades as if by magic, knows the extent of high-level corruption in our society.
Still, the recent Corruption Perceptions Index of the TI (CPI 2024) shows how corruption is thriving in our dear country
CPI 2024 reminds the conscious citizenry that Nepal has slid further in the CPI compared to the year 2023.
With a CPI score of 34 out of 100 in 2024, Nepal has clinched a lowly 107th position among 180 countries, slipping further from the 106th position and a score of 35 in 2023 and a slight improvement of one point compared to 2022. Overall, CPI 2024 points at Nepal’s consistently poor performance in the global corruption barometer where South Sudan figures as the most corrupt country with a score of eight points and Denmark as the least corrupt country with a score of 90.
In South Asia, Bhutan leads with an impressive 72 points, followed by India and the Maldives (38), Nepal (34), Sri Lanka (32), Pakistan (27), Bangladesh (23) and Afghanistan (17).
A question arises, naturally: What is fueling corruption in our country?
A quote from Delia Ferreira, chair of TI, offers an answer, at least in part: People’s indifference is the best breeding ground for corruption to grow.
This daily has been drawing the attention of the public to this scourge by bringing to the fore some of the major scandals resulting from policy level corruption.
For those, who have taken corruption as a fact of life, here’s a quote from Kurt Cobain: The duty of youth is to challenge corruption.
Summing up, a concerted, result-oriented campaign against corruption is long overdue. Let this youthful nation wake up and undertake a tough fight against this scourge, by uniting one and all.