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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.

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 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.

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.

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.

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.

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

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.

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.

Every day, we witness vehicles speeding recklessly on highways and even narrow roads. The roar of engines revving isn’t just noise; it’s a reminder of the ever-present danger. Overspeeding disrupts traffic, creates fear, and heightens the risk of road accidents that impact everyone—pedestrians, cyclists, and drivers alike.

The number of road accidents caused by overspeeding in Nepal is alarming. Reckless driving puts countless lives at risk daily, with many paying the ultimate price. Overspeeding is not just a traffic violation—it’s a grave threat. Without serious action, Nepal’s roads will continue to be a battlefield where speed takes precedence over safety.

Inspector Jitesh Dahal notes: “Many drivers claim ignorance of speed limits, while others justify it by saying they were in a hurry or made a mistake. Some, particularly younger individuals, speed for the thrill, even engaging in dangerous stunts they consider ‘cool.’”

Overspeeding is most common during off-hours when roads are clear. Two-wheelers are more prone to speeding than four-wheelers, as they can maneuver through narrow spaces with ease. Dahal observes that while official records don’t categorize by age, individuals aged 20-25 tend to speed more, whereas older drivers are generally more disciplined.

Certain areas are hotspots for overspeeding, posing increased risks. Highways, with long stretches and limited monitoring, tempt drivers to ignore speed limits. Residential neighborhoods and school zones, where safety should be paramount, also see reckless speeding, endangering children and pedestrians. These hotspots highlight the urgency for stricter enforcement and awareness campaigns.

Ram Laxmi Shrestha, a roadside resident, says: “I’ve seen many bikes and buses speeding dangerously, leading to potential accidents. Buses from Panauti and Dhulikhel seem to compete with each other. Some motorbikes, especially loud ones like ‘Crossfire,’ appear designed for high speeds. Authorities need to impose strict penalties.”

The reasons for overspeeding vary. For some, it’s the thrill of speed; for others, it’s the pressure of time constraints. When speed limits are loosely monitored and penalties are minimal, drivers feel emboldened to break the rules.

Psychologically, overspeeding is influenced by cognitive biases and emotional states. Optimism bias makes people believe they are less likely to be in an accident. Thrill-seeking behavior and peer pressure also play significant roles, particularly among younger drivers. Social influences encourage reckless driving, as individuals try to impress friends or prove themselves.

Multi-tasking while driving also increases the risk of unintentional speeding. In such situations, drivers lose focus on their surroundings. Counseling psychologist Kapil Sharma says: “Emotions like anger, depression, and anxiety can turn drivers into aggressive riders, leading to impulsive behavior on the road.”

Sharma suggests that visual techniques—such as impactful photos, videos, and slogans—can be highly effective in raising awareness. Placing such messages in prominent locations can serve as constant reminders to drive safely.

Efforts to curb overspeeding include speed cameras, fines, and awareness campaigns. However, gaps in implementation reduce their effectiveness. Speed cameras are often limited to specific areas, leaving many roads unmonitored. Fines may not deter habitual offenders, especially with inconsistent enforcement. Awareness campaigns, though impactful, often fail to reach at-risk groups like young or overconfident drivers.

With technological advancements, solutions like smart speed limiters, AI-powered cameras, and speed-sensing roads could help. However, implementing these measures requires significant investment and public cooperation, emphasizing the need for a comprehensive approach.

Young drivers are more likely to overspeed due to inexperience, peer pressure, and a sense of invincibility. Many take unnecessary risks, speeding through city streets and highways without considering the consequences. Peer pressure plays a key role—many young drivers push their limits to gain social approval. The thrill of speed can be intoxicating, but this reckless attitude often leads to accidents, putting not only themselves but also pedestrians and other road users in danger.

Stricter penalties and enhanced driver education programs are essential to reducing overspeeding, especially among young drivers. However, penalties alone are insufficient. Driver education programs must emphasize the dangers of overspeeding, incorporating real-world scenarios, defensive driving techniques, and the emotional and physical consequences of reckless driving.

As you navigate your daily commute, ask yourself: Is the time saved by speeding worth the potential cost—your life or someone else’s? Every time you press the accelerator, you make a choice. It’s not just about reaching your destination faster; it’s about responsibility. The question is, what kind of driver do you want to be? One who risks lives for speed, or one who values safety? The roads are in our hands—let’s choose to drive responsibly.

Nepal and India have agreed on modalities for constructing cross-border transmission lines.

The secretarial level meeting between relevant ministries of Nepal and India held in New Delhi, India on Tuesday, February 11, agreed on the modalities for the same.

The transmission line is vital for exporting 15,000 megawatts of electricity from Nepal to India and Bangladesh by 2035.

Nepal's Energy Secretary Suresh Acharya and India's Electricity Secretary Pankaj Agrwal signed the MoU. With this, the construction process for the cross-border transmission line will now move forward.

Earlier in November, 2024, Minister for Energy, Water Resources and Irrigation Deepak Khadka had discussed with Indian ministries regarding the same with the reference to power trade agreement between Nepal and India to export 10,000-megawatt electricity from Nepal to India within next 10 years.

The 12th meeting of the Joint Steering Committee (secretarial level) had subsequently convened on January 22 this year to take forward the construction process.

In the meeting, both parties had agreed to facilitate power trade between Nepal and India and expedite construction of cross-country transmission lines.

It’s a familiar tale. As the dry season arrives, fires dominate the headlines—whether they are forest fires consuming acres of greenery or house fires wreaking destruction in urban areas. Though seasonal, these incidents leave lasting impacts on ecosystems, livelihoods, and resources. They serve as sobering reminders of nature’s power and our vulnerabilities. In Nepal, as in regions like California, forest fires are an annual occurrence, forcing us to confront not only the immediate aftermath but also broader implications for climate, biodiversity, and public safety.

Nepal’s diverse landscape, ranging from the low-lying Tarai plains to the rugged Himalayan hills, makes it particularly prone to forest fires during the dry season. Regions most at risk include the Terai belt, Siwalik hills, and mid-hill areas, where dense vegetation, prolonged dry spells, and windy conditions create ideal conditions for fire outbreaks. These vulnerabilities are exacerbated by the combination of flammable vegetation and human negligence.

Topography, climate, and vegetation significantly influence the frequency and intensity of forest fires. The dry season, stretching from January to April, brings low humidity and rising temperatures, which dry out undergrowth and make forests highly susceptible to ignition. Human activities such as slash-and-burn agriculture, careless disposal of cigarettes, and unregulated land clearing often act as triggers, further escalating the problem.

The consequences of forest fires in Nepal are wide-reaching, affecting both the environment and society. Environmentally, they lead to significant biodiversity loss as countless plant and animal species perish or lose their habitats. Soil degradation hampers forest regeneration, while the release of carbon emissions contributes to climate change. On the social front, fires exacerbate health issues, with air pollution increasing respiratory illnesses. Communities may face displacement as fires destroy homes and disrupt livelihoods, underscoring the urgent need for effective prevention and response measures.

Parashuram Poudel, Under-Secretary at the Ministry of Forests, stated, “In Nepal, forest fires are an annual menace, exacerbated by human negligence and traditional practices. We’ve been organizing campaigns like ‘Ban Dadhelo Niyantran Saptaha’ to educate communities about fire prevention. Careless behaviors, such as discarding cigarettes along roadsides, often ignite dry vegetation. Poachers also play a role, deliberately setting fires to trap and kill wildlife.”

“In hilly regions, people burn dry grass and leaves, believing it fosters new growth. While this tradition is deeply rooted, it poses significant risks,” Poudel added. “We’ve been working to raise awareness about climate change in villages, but people’s livelihoods are intertwined with nature. Animals depend on these forests, and the lack of rainfall this season has worsened the situation.”

Mahabharat in Kavre is one of the hardest-hit areas, where containing fires at early stages remains a challenge. “Despite deploying firefighters and equipment, limited manpower is a critical issue,” Poudel said.

Meteorologist Ujjwal Upadhyay noted that there is no indication of rainfall in the coming week. “Compared to the last two years, the pattern hasn’t changed significantly. However, over the past 4–5 years, we’ve observed notable shifts, such as consecutive winters without rainfall during this period. Previously, occasional rainfall was more common.”

Upadhyay explained that the absence of rainfall has led to rising temperatures and increasingly dry conditions. “In Gandaki Province, the risk of forest fires is heightened by factors like extensive forested areas and less frequent human activity, which allows dry leaves to accumulate. In contrast, in Madhes, frequent forest visits for leaf collection and grazing prevent such buildup, reducing fire risks,” he said. He cautioned that from late February onwards, fire incidents are likely to increase due to the combination of prolonged dryness, rising temperatures, and accumulated dry leaves.

Addressing the growing threat of forest fires in Nepal requires urgent and coordinated efforts. The devastating environmental and social impacts underscore the need for proactive measures. Solutions include awareness campaigns, sustainable forest management, and enhanced firefighting resources. Effective action demands collaboration among the government, local communities, and international organizations. By adopting sustainable strategies, Nepal can protect its biodiversity, safeguard livelihoods, and mitigate the destructive impact of forest fires.

Donald J Trump was sworn in on Monday as the 47th President of the United States, marking a remarkable political comeback. On Sunday, Trump pledged to issue nearly 100 executive orders aimed at reversing or eliminating policies enacted by the Biden administration. These orders primarily target immigration, energy policy, and a range of other issues.

Foreign policy experts suggest that Trump’s return to office warrants close attention to his trade war with China, his approach toward Asian allies like Japan, South Korea and the Philippines, and his “America First” foreign policy. These stances could bring significant shifts to multilateralism and global diplomacy, with considerable effects on the Indo-Pacific region. Trump's transactional approach to diplomacy is expected to heighten tensions in critical areas such as the South China Sea, the Korean Peninsula and Taiwan.

Regarding Nepal, shifting US global priorities could impact American assistance in climate change and health sectors. Political analyst Chandra Dev Bhatta notes that while American foreign policy has shown consistency over time, recent years have highlighted ideological differences between Republicans and Democrats. If Trump 2.0 adopts a more aggressive foreign policy, Bhatta predicts it will manifest through economic measures, particularly tariffs. “If Trump becomes a ‘tariff man,’ it will have a ripple effect globally due to the interconnected nature of the world economy,” Bhatta said.

For smaller countries like Nepal, where economic stakes are lower, the focus will remain on geopolitics over geo-economics. However, navigating this geopolitical landscape will become more challenging, Bhatta adds, as geopolitics and geo-economics are increasingly intertwined. He also highlights potential domestic implications for Nepal stemming from Trump’s policies, especially his declared funding cuts through the Department of Government Efficiency and Governance (DOGE) and the “Make America Great Again” (MAGA) agenda. If these cuts are implemented, they could significantly affect funding both domestically and internationally.

Trump’s immigration stance could also impact Nepalis in the US, particularly if he enforces stricter policies on undocumented immigrants. Bhatta speculates that such policies might be part of a bargaining strategy, commonly referred to as the ‘madman theory,’ or a genuine intent, the outcome of which remains uncertain. Additionally, Trump’s efforts to consolidate power in Asia under the MAGA banner will likely exert geopolitical pressure on countries like Nepal.

Strategic thinker Binoj Basnyat believes that Trump’s second term is likely to continue Biden’s legacy in Asia due to the region’s growing importance in global trade, security and geopolitics. He emphasizes that managing rising challenges, fostering alliances and ensuring stability will shape US strategies. India’s role as a vital partner in the Indo-Pacific region will be central to these efforts. The US will likely continue leveraging frameworks such as the 2017 “South Asia Policy”, the “Free and Open Indo-Pacific” strategy and the 2022 Indo-Pacific Strategy.

Basnyat highlights that these strategies align with containing China’s rise while strengthening ties with India, designated as a major defense partner in 2016. Initiatives like the India-US 2+2 ministerial dialogue, established in 2018, will continue to influence smaller South Asian nations, including Nepal. He notes that global competition and great power influence are shaping national politics in South Asia, with Nepal’s political parties also reflecting these dynamics.

Basnyat asserts that Nepal’s strategic stability is shaped by global geostrategic factors, including the Post-Cold War syndrome in Europe, the New Cold War in the Indo-Pacific and proxy wars in the Middle East. He suggests that under any potential geopolitical scenario, Nepal’s strategic trajectory will largely depend on its relationships with New Delhi and Beijing. However, Nepal should also prioritize its ties with Washington as a third neighbor, balancing national interests without falling into strategic traps.

During the Joe Biden administration, US engagement with Nepal increased significantly, with over $700m in foreign aid provided since 2019 through the US Department of State and USAID. These initiatives focused on health, economic growth, democracy, governance and food security. One of the primary US priorities in Nepal is the smooth implementation of the Millennium Challenge Corporation (MCC) project. Recently, American private companies have also expressed interest in investing in Nepal’s tourism, medical and other sectors. Meanwhile, the US push for the State Partnership Program (SPP), pending since 2022, remains a contentious issue.

During Trump’s previous tenure, the 2019 Indo-Pacific Strategy report sparked controversy over its implications for MCC and other bilateral initiatives. The Biden administration carefully avoided conflating these issues in bilateral discussions. Observers suggest Nepal should closely monitor Trump’s policies toward India and China, as they could indirectly affect Nepal.

In an interview with ApEx, Katie Donohoe, USAID’s mission director in Nepal, highlighted the agency’s enduring mission despite changes in US administrations. She remarked, “Since USAID was established in 1961, there have been 12 presidential administrations, and this will be my fifth transition working with USAID. While new administrations bring different policy priorities, USAID’s core mission has remained consistent.” Donohoe expressed confidence that USAID will adapt to align with the new administration’s priorities while continuing to collaborate with the government of Nepal and its people.

Nepal-India Chamber of Commerce & Industry (NICCI) welcomed the outcome and urged for speedy implementation of the India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade that was held in Kathmandu on January 10-11.

A meeting of the Inter-Governmental Sub-Committee (IGSC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade at the level of Joint Secretary had earlier held on January 12-13, 2024 in Kathmandu.

The Nepali delegation was led by Secretary Gobinda Bahadur Karkee, Ministry of Industry, Commerce and Supplies of Nepal and the Indian side by Commerce Secretary Sunil Barthwal, Ministry of Commerce, Government of India. Apart from secretaries senior officials from different Ministries and relevant departments of both the countries, including the Embassy of India in Kathmandu took part in meeting.

NICCI welcomed the outcomes of the IGC, a bilateral mechanism aimed at strengthening trade and investment ties, that did a comprehensive review of the whole gamut of bilateral trade and economic relationship, including mutual market access issues, IPR and duty related issues, reads a statement issued by NICCI.

NICCI is hopeful of renewed enthusiasm in trade and transit as the IGC also discussed on review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, the harmonization of standards and the synchronized development of trade infrastructure including the electrification of the Raxaul-Birgunj rail line.

NICCI also welcomed Indian decision to supply 200,000 MT wheat that was requested by Nepal. 

In the meeting, the Indian side agreed that as per prevailing regulations of Ministry of Road Transport and Highways, maximum axle weight of 18.5 tonnes for two axle vehicles and 28 tonnes for three axle vehicles may also be applicable to Nepali vehicles with respect to the cargo-in-transit on Kakarbhitta (Nepal)-Banglabandha (Bangladesh) via Phulbari (India) route, which is a welcome step, according to NICCI. 

Likewise, in response to Nepali side’s requests, the Indian side informed that Sal Seeds and Chayote have been included in the Plant Quarantine Order of India. The request for Jatamasi - Root extract; Sugandhkokila berry extracts; Sugandhwal Rhizome extract and Timur berry extracts into the list of Processed Items (Plant Products) has also been accepted, which is also welcome move by the India.

During meeting, at the Indian side’s request, Nepali side expressed openness to reviewing the documentation regarding the reclassification of products like EPAQUE and POLYHIDE 28 in their technical systems. The Indian side highlighted the problems faced in milk exports to Nepal. The Nepali side agreed to consider the request of Indian side positively for milk products not adequately produced in Nepal such as whey and cheese.

NICCI finds it positive that the meeting welcomed bilateral initiatives aimed at reinforcing the seamless cross-border connectivity between India and Nepal including through construction of new Integrated Check Posts and railway links. Both sides expressed a commitment to taking forward bilateral connectivity, reflecting the shared vision of prosperous bilateral trade. Both sides agreed to form a Joint Working Group for discussion on the acceptance of Online CoO with Nepal and SAFTA.

NICCI is of the view that India as the largest trade and investment partner for Nepal, its contribution to Nepal will further fortify the economic and commercial linkages between the two countries.

The Millennium Challenge Corporation (MCC) Board of Directors has approved $50 million of additional funding for the Nepal Compact. This Board action underscores the shared commitment between MCC and the Government of Nepal to advancing Nepal’s development priorities through transformative, high-quality infrastructure projects.

“The additional funding reaffirms our mutual dedication to ensuring the compact’s success in strengthening Nepal’s electricity grid and supporting long-term economic growth,” said MCC Vice President of Compact Operations Cameron Alford.

The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.

Writer and journalist Sudheer Sharma’s new book, Bhikshu, Byapar ra Bidroha, unveiled in August, offers a comprehensive account of the key figures, issues, and phenomena that have shaped Nepal-China relations. The book spans from the era of King Narendra Dev in the 7th century to 2008, when Nepal’s 240-year monarchy came to an end. Sharma’s other book, Himal Pari ko Huri, published simultaneously, explores new trends in bilateral relations post-2008, though this review focuses solely on Bhikshu, Byapar ra Bidroha.

In the introductory section, Sharma highlights a problem in Nepal’s public discourse about its northern neighbor. He identifies two contrasting perspectives: one group idolizes China and dismisses criticism, while the other harbors deep-seated prejudice. Sharma aims to provide an objective account of this trans-Himalayan relationship, presenting little-known historical facts and anecdotes. He maintains a neutral tone, avoiding personal biases in his analysis.

As a writer and journalist, Sharma excels in meticulous documentation, gathering new insights through his strong rapport with senior politicians and officials, and offering sharp political and geopolitical analysis. These strengths, evident in his acclaimed earlier work, Nepal Nexus, are similarly reflected in this book.

The book delves into the political, trade, cultural, and people-to-people relations between Nepal and China. Sharma credits King Narendra Dev and Princess Bhrikuti with laying the foundation of Nepal-China relations. He highlights the flourishing trade between Nepal and Tibet that began in the 7th century and thrived until the 1950s. Sharma also explores how this trade fostered robust people-to-people connections.

However, he documents the gradual decline of these ties after China took control of Tibet, imposed strict regulations on Nepali residents in Lhasa, and tightened visa rules. A study conducted by China in the late 1950s revealed that a Nepali shop in Lhasa, established a thousand years earlier, was still operational at the time. Three shops were found to be between 500 and 1,000 years old, and four others ranged from 200 to 500 years. Today, the number of Nepali shops in Lhasa has drastically declined, and Sharma notes that Nepal’s trade with Tibet—dating back 1,400 years to King Narendra Dev’s time—is nearing extinction.

In the chapter Bhikshu, Bidrohi, and Bampanthi, Sharma asserts that the foundation of Nepal-China relations is rooted more in cultural, religious, trade, and people-to-people ties than in political connections. He highlights the significant role played by Buddhist monks and nuns in fostering bilateral relations since ancient times. The chapter begins with a reference to an article by Chinese President Xi Jinping, published in Nepali newspapers, where Xi mentions the collaboration between the Chinese monk Fa Hien and Nepali monk Buddhabhadra over 1,600 years ago to translate Buddhist scriptures into Chinese.

Sharma also revisits the well-known narrative of Nepali Princess Bhrikuti’s marriage to Tibetan King Songtsen Gampo and mentions the Chinese monk Xuanzang (Huen Tsang), who visited Lumbini, the birthplace of the Buddha, leaving invaluable written accounts of his pilgrimage. This chapter offers a chronological account of Nepal-China engagements from the 7th century to the 1950s, demonstrating Sharma’s meticulous research and dedication to historical accuracy.

The chapter Mao and Mahendra provides a compelling overview of the relationship between Nepal’s monarchy and China, detailing personal connections between Nepal’s kings and Chinese leaders, which both sides leveraged for mutual benefit. For instance, Mahendra, as crown prince, secretly traveled to Beijing to meet Mao Zedong. The chapter includes several examples of the close proximity between the two sides.

Sharma discusses how the Communist Party of China (CPC) provided financial and other support to Nepal’s communist parties but refrained from supporting armed insurgencies, including the CPN-UML-led rebellion in Jhapa and the decade-long Maoist insurgency. Since the 1950s, China has consistently stated that it does not aim to export its revolution to Nepal. Although the CPC secretly offered financial aid to Nepal’s communist parties in the past, it never supplied arms or ammunition—a lesser-known aspect of Nepal-China relations.

Formal ties between the CPC and Nepal’s communist parties ended following King Mahendra’s royal coup. While China maintains that it does not export its revolution or ideology, Sharma highlights the irony that two major revolutions in Nepal—the Jhapa communist uprising and the Maoist insurgency—were launched in Mao Zedong’s name, despite receiving no Chinese support once they turned to armed struggle. Instead, the rebels were advised to join the political mainstream.

On the relationship between China and Nepali communist parties, Sharma writes: “China was always attracted to Nepal's communist parties due to two reasons: communism and nationalism. Communism is their shared ideology, and Nepal’s communist parties have viewed China as a protector of nationalism. This is why Nepal’s communist-led governments have historically maintained closer ties with China than other administrations.” He also discusses China’s changing approach to Nepal’s internal politics and its overt efforts to consolidate Nepal’s communist forces, suggesting that China may view Nepal’s communist parties as a potential substitute for the monarchy as a stable political institution.

The Khampa revolt is another major factor in Nepal-China relations. Sharma provides fresh insights into the Tibetan Khampas’ 18-year armed rebellion against China. According to the book, King Mahendra’s death marked a turning point for the Khampas, as his successor, King Birendra, adopted a less supportive stance. Following his state visit to China in 1973, King Birendra began military preparations to suppress the Khampas. Chinese Premier Zhou Enlai reportedly assured Birendra that the United States would not interfere, citing an agreement with President Nixon on the Tibetan issue. Upon returning to Nepal, Birendra initiated joint discussions with China on disarming the Khampas and began providing regular updates on their activities.

The book is a valuable resource for understanding Nepal’s diplomatic relationship with China. It examines key narratives, such as China’s policy shift after Nepal’s monarchy was abolished in 2008, its perception of Nepal as a gateway to India and South Asia, its primary concern with Tibet’s security, and its encouragement of Nepal’s communist parties as a reliable political force. However, critics may argue that while Sharma offers fresh insights and unearths historical documents, much of the book reiterates existing narratives about Nepal-China relations.