Nepal eyes electricity export boom
Hydropower generation in Nepal began over a century ago with the 500-kilowatt Pharping Hydropower Project, the country’s first. Initially, the government held a monopoly on hydropower, and only a limited number of projects were developed. By 1989, Nepal had generated just 167 megawatts of electricity. After the first People’s Movement in 1989, the country transitioned to a multi-party democracy. The 1990 Constitution embraced a policy of liberalization, opening the door to private sector involvement in industry and business, which significantly increased the demand for electricity. Former Energy Secretary Devendra Karki notes that hydropower development has since seen visible progress.
The government alone could not meet the rising electricity demand. The Electricity Act of 1989 paved the way for private investment in hydropower. In 1995, the first private sector project, Himal Hydro, signed a Power Purchase Agreement (PPA) for the 60-megawatt Khimti Hydropower Project, which was connected to the national transmission grid in 2000.
According to the Independent Power Producers Association of Nepal (IPPAN), private developers have added 2,740 megawatts to the national grid over the past 24 years. The private sector now accounts for about 80 percent of Nepal’s hydropower generation, says IPPAN General Secretary Balram Khatiwada. In contrast, government projects contribute about 700 megawatts. In recent years, Nepal has made notable strides in hydropower generation, electricity export, green energy promotion, and private sector engagement—moving the country closer to energy self-reliance and economic growth.
Nepal has vast potential for hydropower generation. Government data suggest that approximately 72,000 megawatts can be generated economically and technically. However, current production stands at around 3,400 megawatts, with PPAs signed for an additional 11,000 megawatts.
To address chronic load-shedding, the government declared an energy crisis in 2015 and ramped up hydropower development. At one point, Nepal was importing electricity worth Rs 22bn annually from India to meet demand. Since then, domestic electricity production has surged. Today, surplus electricity during the monsoon season is exported to India, and in Nov 2024, Nepal began exporting 40 megawatts to Bangladesh.
In April 2023, Nepal and India signed a long-term agreement to export 10,000 megawatts of electricity, setting the stage for Nepal to become an energy-exporting nation within the next decade. The private sector has invested approximately Rs 600bn in hydropower, with an additional 4,200 megawatts currently under construction. IPPAN estimates that total investment could reach Rs 1,500bn when ongoing projects are included.
Total investment in completed and ongoing projects stands at around Rs 1,300bn, which includes bank loans, equity capital, and contributions from around 400,000 individual investors. While hydropower development initially occurred in a handful of districts, it has now spread to 70 of Nepal’s 77 districts. Energy projects are underway in nearly all districts except Bara, Bardiya, Bhaktapur, Dang, Dhankuta, Salyan, and Saptari.
According to preliminary IPPAN data, hydropower development has contributed not only to electricity generation but also to socio-economic development in remote areas. These projects have built 3,300 kilometers of roads, 350 kilometers of tunnels, 140 health centers, 153 schools, 95 drinking water systems, and 45 irrigation systems.
To address local needs, the sector has also supported the hiring of 200 teachers and the provision of 30 ambulances. A one-megawatt project under construction can employ about 300 people, while operational projects employ around 10 people each.
To build on this progress, the government has introduced the Energy Development Roadmap and Action Plan 2024, aiming to expand production, consumption, and export of electricity. The goal is to generate 28,500 megawatts of electricity within the next decade. Former Secretary Karki emphasizes the importance of public-private collaboration to implement the roadmap effectively. “The roadmap has been prepared, but to ensure it is not derailed, we must revise laws and create an investment-friendly environment on time,” he says.
Restoring trust in government
Nepal is facing a growing crisis of trust in government. Recent protests by teachers demanding reform in education law and doctors calling for enforcement of prior agreements have disrupted essential services. High-profile resignations—including the Education Minister, state minister and the Vice Chancellor of Tribhuvan University—reflect a political culture marred by interference and disillusionment. Statements by former Governor Vijayanath Bhattarai, who criticized the influence of middlemen in public appointments, underline a widening gap between citizens and institutions.
This disillusionment is not exclusive to Nepal. As Chris Eccles explains in his essay Restoring Trust in Government, public confidence in democratic institutions has declined across many countries over the past several decades. His insights are especially timely for Nepal as it navigates its own democratic transition and seeks to restore public legitimacy.
Eccles begins by highlighting how trust in government has eroded steadily since the 1960s, citing surveys in countries like the United States and New Zealand. This decline cannot be attributed to isolated events or leadership failures. It reflects a deeper, structural shift in how citizens perceive and interact with democratic institutions.
In Nepal, trust remains low despite constitutional reforms and federal restructuring. Political institutions are often viewed as self-serving and unresponsive. Eccles argues that declining trust is not just a result of poor performance but of a changing political culture where citizens demand more than material benefits—they seek fairness, dignity, and voice.
For decades, governments believed that delivering roads, schools, and jobs would be enough to earn public support. Eccles refers to this belief as “performance legitimacy.” However, his research shows that service delivery alone is no longer sufficient to maintain trust. Citizens increasingly judge governments by how decisions are made, who is included, and whether processes are fair.
In Nepal, development initiatives often fail to improve legitimacy when implemented without transparency or local participation. Even when services are delivered, communities may feel excluded or manipulated. Eccles’ insight is clear: trust is not just about output, but about justice and accountability.
Eccles draws on Ronald Inglehart’s theory of social modernization to explain how rising education and global exposure have changed citizen behavior. As societies modernize, people expect governments to respect their rights, engage in dialogue, and share decision-making. They no longer accept top-down rules without explanation or consultation.
Nepal is experiencing this shift. Civic protests, youth-led campaigns, and digital activism reflect a political environment where citizens—especially young people—demand transparency, equality, and ethical conduct. Trust must now be earned through relationships and engagement, not merely promised in speeches.
A defining feature of Eccles’ argument is the idea of a new civic culture. Citizens want more than services—they want institutions to act with honesty, competence, and respect. Trust today is not an automatic result of governance; it is a public value that must be cultivated.
Nepal’s participatory frameworks provide an opportunity to build this culture. Local governments hold public hearings and consultations, but these often fail to influence actual decisions. To restore credibility, these mechanisms must go beyond ritual and become meaningful platforms for collaboration.
Eccles notes that repeated political scandals deepen public cynicism. While the media plays a vital role in uncovering wrongdoing, constant negativity without resolution can damage morale and weaken democratic engagement. In Nepal, headlines about corruption, impunity, and political manipulation are common, yet few are followed by accountability.
Citizens begin to believe that change is impossible. Eccles calls for a shift in narrative—one that includes not only critique but also examples of reform, ethical leadership, and citizen participation that rebuild hope and confidence.
Eccles presents several reforms introduced in New South Wales, including a Public Service Commission, a Customer Service Commissioner, and Infrastructure NSW. These bodies aimed to strengthen professionalism, prioritize public needs, and insulate planning from political interference.
Nepal can adopt similar reforms. Independent commissions, long-term planning authorities, and citizen feedback mechanisms can improve integrity and transparency. These changes must be supported by a public service culture that values competence and service over patronage.
To guide institutional behavior, Eccles introduces the ITARI framework: Integrity, Transparency, Accountability, Responsiveness, and Inclusiveness. Each principle addresses a key dimension of democratic trust.
Nepal’s constitution and laws already reference these values, but implementation is inconsistent. Merit is often compromised by political interests. Public data is not always accessible. Marginalized communities are still underrepresented in key decisions. Restoring trust means turning these values from ideals into lived practice at every level of governance.
Eccles outlines an “engagement continuum” with five levels: networking, coordination, cooperation, collaboration, and partnering. Many governments promise partnership but deliver only limited consultation. This gap between promise and practice damages trust.
Nepal’s experience reflects this challenge. Community members may be invited to meetings, but decisions often remain top-down. True engagement requires that citizens help define problems, shape solutions, and share responsibility for implementation. Community forestry and school management models offer practical examples of deeper participation already at work in Nepal.
Eccles critiques overly strict administrative rules—called probity frameworks—that were meant to prevent corruption but often block innovation. In many systems, civil servants become afraid to take initiative, slowing progress and avoiding responsibility.
This is a serious issue in Nepal. Delays and inaction are often driven by fear of audits or political retribution. Eccles proposes a fit-for-purpose approach, where rules are tailored to the size and risk of each project. Such flexibility can encourage problem-solving while maintaining integrity.
A vital solution offered by Eccles is co-production. This means that the government does not act alone but works with citizens to design and deliver public services. Trust grows when people see themselves as contributors, not just recipients.
Nepal has strong traditions of cooperative action, from community-managed forests to disaster response. These approaches show that when citizens are trusted, they help solve complex problems. Expanding co-production can make governance more inclusive and more effective.
Eccles ends his essay with a powerful revision of a common phrase: instead of saying, “I’m from the government and I’m here to help,” public servants should say, “I’m from the government and I need—and want—your help.” This simple change reflects a deeper transformation—one that centers humility, partnership, and mutual respect.
In Nepal, this message is more urgent than ever. Trust cannot be rebuilt with slogans or plans alone. It requires institutional courage, ethical leadership, and daily practices that honor the voice and dignity of every citizen.
Cannabis as medicine: Time for Nepal to rethink?
For centuries, marijuana has been part of Nepal’s cultural landscape. However, the 1976 ban on its production and consumption has deprived the country of a significant opportunity—not only in tourism and the economy but, more importantly, in accessing its medical benefits. In earlier times, sadhus and yogis used marijuana for religious and medicinal purposes. Nepal was once renowned for its legendary Himalayan cannabis, and Kathmandu’s streets were a haven for tourists and hippies from around the world.
Legalizing cannabis is complex, particularly due to the stigma and misunderstanding surrounding its use. Research shows that its medical benefits emerge not from smoking but from refined and processed forms. Despite growing evidence, it remains illegal and widely misunderstood. Medicinal cannabis can aid in pain relief, reduce inflammation, manage anxiety and depression, treat epilepsy and seizures, improve sleep, and help with neurodegenerative diseases like Alzheimer’s and Parkinson’s.
As scientific studies increasingly confirm marijuana’s therapeutic value, Nepal should reconsider its stance—not to encourage unregulated use, but to harness its vast medical and economic potential.
Globally, perceptions of marijuana are shifting. Over 40 countries, including Germany, Thailand, and several US states, have decriminalized or legalized cannabis for medical use. From chronic pain to neurological disorders, its therapeutic applications are driving reform. Studies highlight cannabis’s effectiveness in easing symptoms of multiple sclerosis and controlling seizures in epilepsy.
A major breakthrough came when research confirmed the medical potential of cannabinoids, particularly CBD (cannabidiol) and THC (tetrahydrocannabinol). These compounds have proven effective in managing chronic pain, anxiety, and epilepsy. CBD, which lacks the psychoactive effects of THC, has shown promise in treating conditions like Parkinson’s and Alzheimer’s.
Nepal’s unique geography and climate make it ideal for cultivating high-quality cannabis. Reintroducing marijuana into the formal economy—strictly for medical use—could offer a valuable economic edge. Legal cultivation could empower farmers, generate export revenue, and create jobs. Despite calls for legalization, the government has yet to take concrete steps, largely due to the outdated 1976 Narcotic Drugs (Control) Act, which still classifies cannabis as illegal. This legislation remains a significant barrier to reform.
Ironically, during Shivaratri—a major Hindu festival—marijuana use is normalized, highlighting a contradiction where illegality exists only on paper. So how can we normalize it in law?
In regions like Rolpa, Rukum, and remote parts of Karnali Province, wild cannabis already grows in abundance. With proper cultivation practices, Nepal could supply high-grade medical marijuana for domestic and global markets. The global legal cannabis market was valued at $21bn in 2023 and is projected to grow by 25.7 percent annually through 2030. For a developing country like Nepal, in search of sustainable revenue sources amid economic uncertainty, marijuana may very well be the “green gold” waiting to be refined.
The benefits of medical marijuana span multiple sectors—from farmers, vendors, and logistics providers to healthcare systems, patients, and the government. Legalization could empower local communities and drive job creation. A regulated cannabis economy could open new revenue streams through taxation, exports, and pharmaceutical partnerships, significantly contributing to GDP growth.
Beyond boosting state revenues, legalization could generate employment across the entire supply chain—from cultivation and processing to research, transportation, and retail. Medical cannabis also offers the public a sense of reassurance. As disillusionment grows with the side effects of chemical-based medications, many are turning toward plant-based, herbal alternatives.
Medical cannabis provides natural and, in many cases, more effective treatment for a range of physical and mental health conditions. This shift not only supports public health and economic gains but also fosters innovation in Nepal’s herbal and pharmaceutical industries.
A proposed bill remains stalled, largely due to the outdated 1976 Act and fears of international backlash. Nonetheless, within Nepal, researchers, experts, and policymakers increasingly advocate for legalization. In fact, whichever political party champions and executes the bill may gain a competitive political advantage. Public support—especially among the youth—is growing rapidly. However, misconceptions persist. Many still confuse the medical benefits of cannabis with recreational smoking, which is misleading. Medical cannabis involves administering refined compounds like CBD and THC in precise, controlled doses—not raw or smoked forms.
Smart snacking
We all want our food to be delicious and, if possible, we wouldn’t mind gourmet meals every single time. That is probably why restaurants thrive in Nepal. We love eating good food but we don’t want to put in the effort it takes to bring that meal to our tables. We mean, what wouldn’t we give to be able to hire a chef at home, as many celebrities tend to do, and not have to do all the prepping and cooking? But it’s not possible for various reasons and we have to live with that. But does that mean we have to eat boring food whenever we want a quick snack? The answer is a resounding no. We bring to you some tried and tested ideas that are super easy to make, take less than 30 minutes, and are mouth-wateringly delicious.
Cheese potato bites
India’s celebrity chef Ranveer Brar said in an interview that the one thing you should always have in your fridge is boiled potatoes. You can make so many things with it in just a few minutes whenever you want something quick to eat. For these simple cheese potato bites, that is one of our favorites, all you have to do is peel some boiled potatoes and slice them thinly. Grease a pan with olive oil, put a layer of potatoes on top, sprinkle some salt, pepper, and oregano(and/or chili flakes if you prefer), grate some cheese over it and repeat the process a few times and then bake this in the oven for 20 minutes at medium heat. Have this hot out of the oven with some barbecue sauce or as it is. It’s yummy and filling.
Cucumber on crackers
The good news is this involves zero cooking. All you need are three things: crackers, cucumbers, and cheese. Lay the crackers on a plate and top them with sliced cucumbers. Make sure you have thoroughly washed the cucumbers and peeled them beforehand. Cut cheese into small thin slices if you are using a block of cheese or simply strip sliced cheese into small bits and put them over the cucumber slices. Your final product should have three layers: crackers at the bottom, cucumber slices in the middle, and cheese on top. If you use cream cheese instead of cheese, then the cucumber goes on top of the cream cheese which goes on top of the cracker. You can put an olive on top of the cheese if you have some on hand or skip this and it will taste just as good. This simple snack that just needs some minor assembling is quick to make and refreshing. The crunch of the cracker and the softness of the cheese balance out the texture and flavor making it a fun food to munch on.
Carrot sticks and hummus
Hummus is a simple dish made of chickpeas, lemon, garlic, tahini, and some basic spices. You can buy it at different stores but homemade hummus is fresh and tastes a whole lot better than packaged ones. It’s simple to make as well. You can use soaked and boiled chickpeas or use canned chickpeas depending on how much time you have. First mix lemon and tahini (you can get good quality tahini at most department stores) in a food processor and blend it until you get a smooth paste. Then add garlic, olive oil, and chickpeas and blend until smooth again. You can peel the chickpeas for a smoother hummus but not peeling them works as well. Add a little bit of cold water or ice cubes if you have them and blend for a minute and your hummus is ready. Peel and cut carrots into sticks and you can use these as spoons to eat the hummus. This rich in protein and fiber snack is great when you are feeling hungry and need something to tide you over till dinner.
Easy garlic bread
This is a revamped version of the classic cheese on toast idea but it’s a 100 times better than regular toast with cheese. Melt some butter and add crushed garlic, sliced green chili. Add salt if you are using unsalted butter or else skip it. You can also add some chili flakes to give it a bit of color. Slather this on top of bread slices and then top it with grated cheese. If you like onion, then finely chop one and sprinkle it on top of the cheese. Lightly grease a tray and put the bread slices on it and let it bake in the oven for 15 minutes on medium heat. The result is a crunchy garlic bread that you can have with tea or some cold coffee. If you want this snack to be a bit on the heavier side, you can choose to add toppings like sausages or sweet corn and other veggies according to your preference. Use brown bread for a healthier, filling version of this snack or use white bread for a pizza-like appeal.
Peri peri makhana
Makhana or fox nuts make for an excellent snack. It’s quite popular in India and Nepal too as it’s delicious and nutritious. You can enjoy this guilt free and as it can be quite filling, you won’t feel the need to reach for chocolates or biscuits in between meals. Simply dry roast makhana on a pan on medium heat until it looks crisp and crunchy. Transfer to a large tray and allow it to cool. Avoid adding ghee to it while roasting if you are trying to lose weight or else you can add a teaspoon of ghee to the pan. Store it in an airtight container to prevent it from going stale. You can also wrap them in tissue paper or kitchen paper and store them in a ziplock bag. When you want a quick snack, transfer makhana into a container with a lid, only filling half of it. Add salt, pepper, and peri peri spice to it and give it a good shake and indulge in some guilt-free snacking.
Black gram salad
This is a popular Indian street food that you can enjoy hot or cold and it’s nutritious, filling, and delicious. You need some pre-prepping for it though. Soak a cup of black gram in water overnight and cook it for about four to five whistles in the pressure cooker the next morning. You can store this in an airtight container in the fridge for up to three days and use it while assembling a low effort salad. The salad is vegan and gluten free and can be served alongside lunch or dinner or eaten as a snack. Take some boiled black gram in a bowl, add chopped tomatoes, onion and coriander to it and give it a good mix. Add salt, pepper, chili, and some lemon juice and mix well. Serve with some crunchy bhujiya on the side and this balances out the texture of the dish. But it also works well on its own.
Strawberry smoothie
Smoothies have become quite popular in recent times. Almost every other restaurant has some version of this healthy drink on their menu. But smoothies can serve as a great snack as, depending on what goes in them, they can be quite filling. The one we are presenting here is a simple recipe for our all-time favorite, especially when strawberries are in season. You can also freeze strawberries to enjoy this all year round. In a blender, add three tablespoons of curd, five to six medium sized strawberries, half a banana, a teaspoon of chia seeds, and half a cup of water and blend till you get a smooth mixture. Transfer this to a bowl, top with nuts and seeds and serve. You can use ice instead of water if you want a slightly slushier version of this smoothie. We guarantee you will be making this smoothie over and over again.
Instant energy bars
You can buy all sorts of energy and protein bars today. The market is saturated with different brands offering all kinds of flavors. But we like to make ours at home. It’s simple, cost-effective, and filled with ingredients that we like. For a simple energy bar or ball, depending on which shape you mold it into, mix oats, some nuts like almonds or pistachio, and salt. Transfer this into a food processor and blend it and then add maple syrup and olive oil to it and blend it again. Remove and transfer to a tray lined with parchment paper. Press the dough evenly onto the paper. Top with coconut flakes or powder. Roughly chop some more of the same nuts that have gone into the batter and sprinkle them on top of the dough. Bake this for about 10 minutes on medium heat. Make sure you don’t over bake it and that the batter is still a little soft when done. Cut it into small squares when it cools down. You can store this in a sealed container for up to a week.
The best brownies
Who wouldn’t like dessert for a snack? And these brownies that we are about to teach you to make is the most delicious dessert you will have had. They are gooey and melt in your mouth and you can use store bought premixes for it too, thus shortening your time in the kitchen. Preheat the oven to 200 degree Celsius and add an egg, oil, and water as directed to a store bought cake mix. Fold this batter with a spatula but don’t over mix it either. Take seven to eight Oreo biscuits and roughly crush them. Add this to the cake batter. Then transfer the batter to a greased cake pan and bake for 30 to 40 minutes or till a toothpick inserted at the center comes out clean. Let the cake cool and then cut into slices and indulge in this yummy goodness.
Peanut butter goodness
Craving a yummy snack but have only five minutes to prepare something? This is when a jar of peanut butter in your pantry can come in handy. Peanut butter is rich in protein, healthy fats, and fiber. Thinly slice some apples and plate it along with a large dollop of peanut butter. Apple and peanut butter taste great together. Next, remove the pits of some soft dates, fill it with peanut butter and have a few the next time you are hungry. It is simple, filling, and dessert-like. Slather some peanut butter on some saltine crackers and you are good to go. Mix oats and peanut butter and make small balls out of them and bake in the oven for 10 minutes on medium heat. You can add a mashed ripe banana to the mix for some extra sweetness or if the peanut butter you are using doesn’t have added sugar in it already.
Nepal exports tea worth Rs 3.57 billion in last nine months
Tea worth Rs 3.57 billion has been exported till April 13 of the current fiscal year 2024/25, starting July 16, 2024.
Tea exports are expected to reach Rs 4.5 billion this year, according to the National Tea and Coffee Development Board.
Board official Chandra Puri said Nepal's tea sector has created around 60,000 jobs and there are 171 tea estates and 120 small and medium tea processing centres.
According to him, tea was grown on a total of 20,760 hectares of land across the country in the fiscal year 2023/24. During this period, 27 million kilograms of processed tea was produced. There are 15,203 tea farmers in the country.
Puri informed that 16.5 million kilograms of tea worth Rs 3.63 billion was exported in the previous fiscal year.
Meanwhile, the Board has decided to organize a tea exhibition at Harihar Bhawan in Pulchowk today on the occasion of the 29th National Tea Day. The exhibition has been organized with the objective of promoting Nepali tea in the international market.
Puri said that discussions would be held among the representatives of tea farmers, workers, cooperatives, entrepreneurs, business persons and concerned organizations amidst the exhibition of tea produced in different districts of the country at one place.
The theme of the National Tea Day this year is 'Healthy Tea, Sustainable Market, Foundation of Prosperous Nepal'.
10 Years of Gorkha Earthquake: No people in ‘Model Village’
April 25 marks the 10th anniversary of the deadly earthquake that struck Nepal killing nearly 9,000 people, injuring 22,000 and making more than a half million people homeless. It was the most powerful earthquake ever recorded to have hit the Himalayan country.
On April 25, 2015, when a 7.8 magnitude earthquake shook Nepal’s ground at 11:56 AM, the epicenter in Barpak village of Gorkha district suffered the most immediately. At least 72 people lost their lives from the village alone, while all the houses were damaged in the disaster except a few.
10 years later, Barpak doesn’t look like a village anymore. With completion of reconstruction, Barpak looks like a bustling town in recent times as all traditional stone roofed houses are replaced by tall concrete symmetrical buildings and a good flow of tourists.
In contrast, the neighboring village Laprak which housed the largest integrated settlement looks deserted even after a decade of the disaster. Initially, though Barpak was chosen for the site of the new settlement, the plan couldn’t be executed due to several reasons which provided Laprak a chance to shine and be the “model village.”
However, the settlement built by the Non-Resident Nepali Association consisting of 604 houses (including additionally built) in Gupsi Pakha are in sorry state, with many locals themselves regarding it as a ghost village. Its difficult to spot people in the surrounding which was actually expected to be a vibrant and exemplary village of more than 2000 people.
The new settlement, located at around 2700 meters from the sea level, was chosen considering the geological studies and accessibility. Unfortunately, it failed to address the needs and expectations of indigenous communities of the mountain region. As a result, there are locks in doors and grasses at the entrance, holes on roofs, fading colors in two-storey buildings and deep silence around the settlement.
According to Kishan Gurung, Ward-4 Chairman of Dharche Rural Municipality, out of the total houses, only 50 are filled with families who run homestays and hotels, while 50 other families keep migrating between the old village and the new settlement. “We are preparing to connect electricity from the national line, manage supply of drinking water and construct a gravelled road linking Barpak to Laprak. I am hopeful that villagers will move to the new settlement someday and Laprak will be known as a model village again.”
Nearly 8,000 units of EVs imported till third quarter
Nepal imported 7,967 units of electric cars, jeeps and vans worth Rs 18.62bn over the first nine months of fiscal year 2024/25. This surge, generating Rs 11.47bn in government revenue, underscores EVs’ rising popularity in the country, driven by favorable policies, environmental goals and economic incentives.
Foreign trade data for the first nine months of 2024/25, unveiled recently by the Department of Customs (DoC) shows, over 50 percent of imports, or 4,414 units, fell in the 51-100 kW motor capacity range which is ideal for Nepal’s urban and semi-rural roads. Smaller EVs (up to 50 kW) accounted for 2,783 units, while 742 units were in the 101-200 kW capacity range. Likewise, 17 units were in 201-300 kW motor capacity range and tow had capacity in excess of 300 kW.
China dominated Nepal’s EV market, supplying 74.08 percent of total imports of the country in the review period. EVs worth of Rs 14.49bn were imported form the northern neighbor in the review period, with brands like BYD and Dongfeng leading due to competitive pricing and advanced features. India follows with 2,023 units, or a market share of 25.39 percent, bolstered by Tata’s strong presence, as seen with models like the Punch EV. Imports from Germany (31 units), the US (5 units), South Korea (3 units) and Indonesia (3 units) were minimal, underscoring the China-India duopoly in the Nepali EV market.
In 2023/24, Nepal imported a total of 11,701 electric vehicles (EVs) - a growth of a whopping 188.91 percent compared to 2022/23 when 4,050 units of electric cars, jeeps, and vans entered the country. More than a third of total EV imports in 2023/24 came from China. A total of 8,938 EVs units came from China and remaining 2,763 from other countries. The total import value of these EVs was Rs 29.48bn.
The EV boom in Nepal aligns with Nepal’s Nationally Determined Contributions (NDC) which targets to increase the share of EVs in private passenger vehicles to 25 percent by 2025 and 90 percent by 2030. Lower import duties, which are 15-80 percent for EVs and over 240 percent for those powered by fossil fuel, and the availability of affordable cars loaded with advanced technologies have fueled demand for EV in Nepal.
The growing EV adoption is gradually reducing reliance on costly oil imports. Data shows Nepal saved Rs 11.07bn in 2023/24 due to a decline in the import of petroleum products.
Nepal, India step up engagement
Over the past few months, Nepal and India have intensified bilateral engagement, yielding tangible progress in economic and development partnerships. Although Prime Minister KP Sharma Oli’s visit to New Delhi remains uncertain, a series of ministerial meetings and bilateral mechanism discussions have taken place. Within two weeks, two senior ministers from Narendra Modi’s cabinet visited Nepal and met with Prime Minister Oli.
The past month witnessed a flurry of diplomatic activity, with three Nepali ministers traveling to India for meetings with their Indian counterparts. Foreign Minister Arzu Rana Deuba engaged in comprehensive bilateral talks with India’s External Affairs Minister, S Jaishankar, focusing on enhancing political and economic collaboration. Meanwhile, Forest Minister Ain Bahadur Shahi Thakuri met with India’s Minister for Environment, Forest and Climate Change, Bhupender Yadav, to discuss transboundary environmental conservation and sustainable forestry initiatives.
Another significant development occurred during Water Supply Minister Pradeep Yadav’s visit to New Delhi, where he met India’s Jal Shakti Minister CR Patil. The two leaders signed a landmark agreement to expand cooperation in water resource management, sanitation and hygiene—an area of critical importance for both nations. This agreement is expected to facilitate knowledge-sharing, infrastructure development and joint projects to address water scarcity and improve public health outcomes.
Indian Minister for Power and Housing and Urban Affairs Manohar Lal Khattar is currently in Nepal for a two-day official visit. According to Indian officials, the trip aimed to advance discussions on key power projects of mutual interest, including cross-border electricity trade and hydropower development.
Over the past few years, energy cooperation between Nepal and India has seen remarkable progress, with Nepal exporting surplus hydropower to India and Indian firms investing in Nepal’s hydroelectric projects. This growing synergy in the power sector is expected to bolster Nepal’s energy independence while supporting India’s renewable energy goals.
Early this month, Nepal and India signed a Memorandum of Understanding (MoU) to strengthen cooperation in agricultural science and technology. The agreement, which replaces a 1991 pact, covers a wide range of areas, including agricultural production, crop management, trade and marketing. Nepal’s Agriculture Minister Ramnath Adhikari and India’s Agriculture Minister, Shivraj Singh Chouhan, formalized the deal, which is expected to enhance food security, boost farmer incomes and promote sustainable farming practices through joint research and technology transfer.
In late March, the Nepal-India Joint Working Group convened to address critical border management issues. The discussions centered on curbing cross-border crime, improving border infrastructure—such as Integrated Check Posts (ICPs), roads and railway networks—and enhancing the operational capacity of security agencies. Both sides also explored collaborative measures for disaster risk reduction and management, recognizing the shared vulnerabilities to natural calamities like floods and earthquakes.
Further reinforcing security and trade ties, the two countries held the 21st Director General-level talks this month, focusing on measures to streamline cross-border commerce and combat smuggling. These discussions are crucial for ensuring smooth trade flows, particularly given Nepal’s reliance on Indian ports for third-country trade.
Despite the positive trajectory in bilateral relations, certain contentious issues remain unresolved. Nepal has persistently raised concerns over the delayed implementation of the Eminent Persons’ Group (EPG) report and lingering border disputes, particularly in regions like Kalapani, Lipulekh and Limpiyadhura. India, however, maintains that these matters should be resolved through established bilateral mechanisms rather than public posturing.
Recently, India’s Ministry of External Affairs Spokesperson Randhir Jaiswal reiterated this stance during a weekly press briefing, stating, “We have a bilateral mechanism with Nepal to discuss these issues. Unilateral actions do not alter ground realities.”
While Prime Minister Oli’s visit to New Delhi remains uncertain, he has met with his Indian counterpart Modi on two occasions—first on the sidelines of the UN General Assembly in September 2024 and again during the BIMSTEC summit early this month. These interactions suggest a willingness to maintain dialogue despite political sensitivities.
However, a new point of friction emerged last month when reports surfaced alleging India’s tacit support for Nepal’s pro-monarchy movement. India swiftly denied these claims, but the episode highlights the delicate nature of Nepal’s domestic politics and its implications for bilateral relations. Additionally, some analysts speculate that India may view Nepal’s growing engagement with China—particularly its participation in China’s Belt and Road Initiative (BRI)—with caution.
Foreign policy experts say that despite occasional political tensions, India has adopted a pragmatic approach by prioritizing economic and developmental partnerships with Nepal. This strategy aims to insulate mutually beneficial projects from geopolitical fluctuations while gradually addressing contentious issues through diplomatic channels.
It’s time to abolish child marriage
The Constitution of Nepal has stipulated the right against child marriage as a fundamental right. Nepal is also a party to various international treaties against child marriage. In this sense, it falls within the theoretical scope of human rights. According to the existing laws of Nepal, marriage under the age of 20 is defined as child marriage. There is also a provision for imprisonment of up to three years and a fine of up to Rs 30,000 for those who commit marriage-related offenses, including child marriage. These provisions notwithstanding, instances of child marriage are not hard to find in Nepal.
An alarming picture
According to the statistics of the Nepal Police, in 2022, 52 complaints related to child marriage were registered in Koshi province, 10 in Madhes province, 10 in Bagmati province, five in Lumbini province, 10 in Sudurpaschim province, two in Gandaki province and nine in Karnali province.
These figures are merely representative records. Whether it is the parents who get their children married off to avoid responsibility or the children themselves opting to tie the nuptial knot, there is a widespread practice of covering up child marriages in families or societies by not filing complaints.
Therefore, it’s no surprise that Nepal still has a sizable population that disregards the minimum marriageable age and sees marriage only as a matter of obligation, maybe because of illiteracy also.
According to the 2011 census, child marriage, which stood at 27 percent, came down to 21 percent (per the 2021 census). One can take a little bit of solace in these data. Still, child marriage remains a matter of concern with rural and marginalized communities still opting for it in the name of tradition and culture.
I myself had the pathetic experience of child marriage, so I am committed to playing a concrete role in reducing child marriage by empathizing with the overall development of girls from ordinary families. A resolution registered in the House of Representatives aims to initiate a concrete and diagnostic debate on the abolition of child marriage in Nepal. It is necessary to debate whether the abolition of child marriage is possible, not its reduction.
In our society, child marriage is not limited to any specific community or geography; it has spread throughout the country, depriving the children, first and foremost, of their right to education.
No matter how strict the law is, traditional thinking and socio-economic environment encourage child marriage with factors like poverty, inequality, lack of education and gender discrimination all playing their respective parts.
Various researches show that child marriage increases the risk of early pregnancy, maternal mortality, malnutrition, school dropout rates and violence. It is also a subtle and distorted form of gender violence. Child marriage is both a cause and a consequence of poverty.
In terms of the right to education, child marriage effectively ends the formal education of children. Child marriage in lower and middle-class families leads to the compulsion to have children and shoulder the responsibility of parenthood. Not only this, most of the men and women, who marry at an early age, have their decision-making capacity diminished, which impacts their participation in the ‘economic cycle’ necessary to sustain the life cycle.
On account of factors like these, 193 countries expressed commitment to the United Nations’ Sustainable Development Goals (SDGs) and set various goals with 17 indicators to set global development priorities by 2030, in 2015. ‘Target 5.3’ under the SDGs talks about ending child marriage within the deadline.
We have enacted laws against child marriage but our campaigns and programs aimed at ending this scourge do not seem to have reached sections of the society that are lagging behind in terms of human development indexes like literacy. We need to be more serious vis-a-vis child marriage, also to achieve SDGs by aligning our efforts with the United Nations and various donor agencies working to end child marriage.
With all three tiers of the government—central, provincial and local levels—lacking a clear vision, will we be able to achieve these goals within the deadline for SDGs?
The way out
Let’s make it mandatory for every youth to obtain an ‘adult registration certificate’ from the ward office of the concerned municipality for marriage upon completing 20 years of age. This kind of arrangement can bring about desired positive changes. Just as the state provides birth certificates, citizenship or other official documents, our policy initiative should be toward making it mandatory to obtain an adult registration certificate from the ward before marriage after attaining the minimum marriageable age. Some local levels appear to have implemented this system, which is quite commendable. A legal system governing this throughout the country will make way for its integrated implementation and a measurable impact.
The author is a lawmaker
Nepal estimates 397 snow leopards nationwide
Nepal has released its first-ever national estimate of the snow leopard population, placing the figure at 397 individuals with a mean density of 1.56 leopards per 100 square kilometers. The comprehensive assessment was led by the Department of National Parks and Wildlife Conservation (DNPWC) and the Department of Forests and Soil Conservation (DoFSC), with collaboration from conservation institutions and researchers, including WWF Nepal.
“This national estimate is a historic step in Nepal’s conservation journey,” said Ram Chandra Kandel, director-general of DNPWC. “It not only provides a clearer picture of the snow leopard population but also strengthens our strategy for long-term conservation.”
The data, gathered between 2015 and 2024, utilized advanced techniques such as camera trapping and genetic analysis of scat samples. The assessment followed the PAWS (Population Assessment of the World’s Snow Leopards) methodology developed under the Global Snow Leopard & Ecosystem Protection Program (GSLEP).
Badri Raj Dhungana, director-general of DoFSC, emphasized that a significant portion of snow leopard habitat lies outside protected areas. “This highlights the need for stronger community-based conservation, improved habitat connectivity and mitigation of human-wildlife conflict,” he said.
Ghana Shyam Gurung, country representative of WWF Nepal, hailed the estimate as a critical milestone. “This baseline will guide future interventions and ensure resources are directed where they’re most needed,” he said, underlining the importance of local partnerships in the face of climate change and infrastructure expansion.
The study compiled data from seven key snow leopard regions, reflecting Nepal’s leadership in high-altitude biodiversity conservation. It also places the country alongside Mongolia, Bhutan and India, which have completed similar assessments in recent years. Despite being found across 12 countries in Asia, snow leopards remain one of the least-studied big cats. A 2021 WWF report found that only 23 percent of their global range has been systematically studied, with less than three percent yielding data on population abundance.
Need of an intact foreign policy
The recently concluded Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit in Thailand saw several important sideline meetings between heads of state and government. Prime Minister KP Sharma Oli held a bilateral meeting with Thai Prime Minister Paetongtarn Shinawatra. The two leaders discussed a wide range of issues: economic cooperation, trade, aviation, tourism, culture, and development partnerships.
During the visit, eight Memorandums of Understanding (MoUs) were signed—two at the government level and six between non-governmental entities. Among them, Foreign Minister Arzu Rana Deuba and Thailand’s Minister for Culture Sudawan Wangsuphakijkosol signed an MoU to foster cultural collaboration. Deuba also signed an agreement on tourism cooperation with Thai Minister for Tourism and Sports Sorawong Thienthong.
Other MoUs were inked between Nepal Netra Jyoti Sangh and Mahidol University, Janata Agro and Forestry Nepal and Kasetsart University, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Board of Trade of Thailand, and Kathmandu University and Siam University. The Confederation of Nepalese Industries (CNI) also reached an agreement with the Federation of Thai Industries, and the Nepal Chamber of Commerce signed one with the Tourism Council of Thailand. These commitment partnerships are expected to enhance cooperation across various sectors.
Prime Minister Shinawatra announced Thailand’s intention to increase investments in Nepal’s aviation and tourism sectors. She expressed interest in expanding Thai Airlines' flights to Kathmandu and launching direct flights to Lumbini. She further emphasized Thailand’s plans to prioritize investments in Nepal’s energy, hospitality, and aviation industries. Calling the visit historic, she highlighted the shared goal of deepening connectivity and trade relations.
PM Oli said the visit strengthened Nepal-Thailand relations. He voiced confidence in future collaboration in areas such as culture, tourism, education, and energy. Reflecting on six decades of diplomatic ties, he called for greater engagement, including stronger people-to-people connections. He also encouraged Thai investors to explore opportunities in Nepal’s hospitality and aviation sectors.
Overall, Prime Minister Oli’s visit to Thailand proved to be highly significant. One of the most notable events on the sidelines was his one-on-one meeting with Indian Prime Minister Narendra Modi. The two leaders met privately for 45 minutes, and Oli appeared pleased and content afterward—indicating the success of his visit.
Foreign policy must remain dynamic and responsive, as global geopolitics continues to evolve. It is crucial that Nepal reaches a national consensus on its foreign policy framework. Such a policy should transcend individual leaders or political parties. Whether led by Oli, Sher Bahadur Deuba, or Pushpa Kamal Dahal, Nepal’s foreign policy should remain consistent, reflecting the nation’s long-term interests rather than shifting with changes in leadership.
There are fundamental bases for foreign policy, and these should be discussed among all stakeholders to reach a consensus. This is a crucial time for such dialogue. While formulating our foreign policy, we must consider factors such as our geography, social norms, cultural and religious aspects, political system, international affiliations, and commitments under the United Nations Charter. If this approach is taken, the policy will be more broadly accepted.
Foreign policy may vary depending on the nature of a country’s relationship—whether we share borders, cultural and social ties, or strategic interests with major powers and donor nations.
Our foreign policy should be firmly aligned with the principles of Panchsheel and the Non-Aligned Movement. At this juncture, Nepal must prioritize sustainable development, peace and security, democratic governance by the people’s representatives, and overall national progress—guided by our geography, social structure, political system, and economic aspirations. As society advances, with improvements in education, healthcare, and global competitiveness, it is essential that our foreign policy reflects these changes.
Bridging Nepal’s urban-rural divide: Challenges and solutions
Nepal is experiencing a growing economic disparity between its urban and rural areas, where rapid development in cities contrasts sharply with the stagnation in rural regions. The concentration of infrastructure, services and job opportunities in urban centers exacerbates inequality, while rural areas remain underdeveloped and lack basic facilities. This uneven development has led to a significant rural-to-urban migration, with people leaving villages in search of better opportunities in cities, further depleting rural economies.
Urban centers have become magnets for rural populations due to the concentration of essential services such as education, healthcare and employment opportunities. The hope of improving living conditions drives internal migration, as rural residents believe cities offer a better standard of living. This urban-centric development model not only leaves rural areas behind but also accelerates the growth of overcrowded cities, contributing to further challenges like rising unemployment and inadequate housing.
In response to this issue, Nepal adopted a federal system of governance to decentralize power and resources. The goal was to empower provincial and local governments, assuming that they would be better equipped to address local needs and promote equitable development. By transferring authority and funds to local governments, it was hoped that development would be more localized and tailored to the specific needs of rural areas. Unfortunately, the anticipated benefits have not fully materialized.
Despite the decentralization of power, rural development has not seen significant improvements. In many cases, local governments have struggled to use the funds effectively, and instead, the transfer of power has led to the decentralization of corruption. Local authorities have misused public resources meant for development, often siphoning off funds for personal gains. This problem, which was initially concentrated in the central government, has now spread to local levels, undermining the objectives of decentralization.
Corruption at the local level has further deepened economic inequality. Political elites and well-connected individuals in both urban and rural areas often benefit from the misuse of state resources, while ordinary citizens continue to face hardship. Funds that could have been used for infrastructure development, job creation, education and healthcare are diverted through corrupt practices, leaving rural communities trapped in poverty and underdevelopment. This corruption weakens public trust and limits the potential for inclusive growth, which could have uplifted the rural population.
Moreover, the lack of transparency and accountability in local governance has made it difficult to ensure that development projects are carried out effectively. In many cases, development funds are not properly monitored, and there is little oversight to ensure that they reach the intended communities. Without effective monitoring mechanisms, local leaders are often able to exploit the system for personal gains, while the rural poor continue to suffer from a lack of access to essential services.
The failure to achieve equitable development and inclusive growth can also be attributed to weak governance structures at the local level. Local leaders often lack the capacity to manage development effectively, and there is a significant gap in skills and knowledge required to implement projects that could drive real change. In the absence of strong institutions and effective leadership, rural areas continue to miss out on the benefits of federalism and decentralization.
To address the growing disparity between urban and rural areas, Nepal needs comprehensive reforms. One of the most critical steps is to strengthen anti-corruption mechanisms at both the local and national levels. Transparency in how development funds are allocated and spent is crucial to ensure that resources are used effectively. Independent bodies should be established to monitor the use of public funds and hold local leaders accountable for any misuse. Additionally, capacity-building programs for local leaders and administrators are essential to improve governance and ensure that development projects are implemented effectively.
Another important reform is the improvement of infrastructure and services in rural areas. This can be achieved through better planning, prioritizing rural development and ensuring that basic services such as healthcare, education, and transportation are accessible to all. Rural communities should not be left behind in the pursuit of national development, and government policies must reflect this commitment to equitable growth.
Furthermore, local governments must be provided with the tools and training necessary to manage development funds effectively. Capacity building should focus on transparency, financial management and project implementation to ensure that rural areas benefit from the decentralization of power.
In conclusion, Nepal’s growing economic inequality, fueled by the urban-rural divide, requires urgent action. The decentralization of power through federalism has not led to the expected improvements in rural development, largely due to corruption, mismanagement, and weak governance. To bridge the gap between urban and rural areas, Nepal must strengthen its institutions, promote transparency and build the capacity of local leaders. Only then can the country achieve true inclusive development and provide equal opportunities for all its citizens, regardless of where they live.
Forgotten kabro
For many who grew up in rural Nepal, the sharp, tangy taste of kabro (Ficus lacor) pickle brings back warm childhood memories. This seasonal treat was once a favourite among children, who often ate the young shoots and fruits straight from the trees. The fresh leaves, buds, and fruits were not just tasty—they were part of everyday cooking in many homes.
But eating too much kabro had its side effects. Many children joked about how it could cause an upset stomach or diarrhea. Still, this wild ingredient had a special place in both the kitchen and traditional medicine. Sadly, like many other native foods, kabro is disappearing from Nepali households, replaced by modern and processed foods.
What is kabro?
Kabro, or Ficus lacor, is a large, fast-growing tree found in Nepal, India, Bhutan, Myanmar, and across Southeast Asia. It belongs to the Moraceae family, which also includes figs and mulberries. The tree grows well in tropical and subtropical climates. Apart from feeding humans, it also supports wildlife—its fruits are a favourite of many birds and animals.
In Nepal, making pickles from kabro is an age-old tradition. The young buds, leaves, and fruits are harvested during specific seasons and used to make a tangy, slightly bitter pickle that goes perfectly with rice and dhido (a traditional buckwheat porridge).
The best time to pick kabro is when the buds or leaves are young and reddish in colour. Once they mature, they are mostly used as animal fodder.
Ingredients for kabro pickle
- Tender kabro shoots or young leaves
- Turmeric powder
- Salt
- Timur (Sichuan pepper)
- Red chilies
- Cardamom
- Ginger and garlic paste
- Mustard oil
- Lemon juice
Methodology
Wash the young leaves and shoots properly. Lightly boil them to remove some of the bitterness and soften the texture. Let them cool, then mix with turmeric, salt, and other spices. Sauté the mixture in mustard oil until it smells rich and aromatic. Add lemon juice for a tangy twist. Leave the pickle in sunlight for a few days to let it mature. The result is a delicious blend of bitter, sour, and spicy flavours—a taste that brings back memories for many Nepalis.
Kabro in traditional Medicine
Kabro isn’t just a tasty pickle. It has long been valued for its healing properties in traditional medicine. In small amounts, kabro supports digestion and relieves bloating. It’s often used to treat indigestion and gastric discomfort. Packed with antioxidants, it helps strengthen the immune system. The bark and leaves have anti-inflammatory properties. Some studies suggest kabro helps lower blood sugar.
A tradition at risk
As more people move to cities and processed foods become common, traditional items like kabro pickle are being forgotten. Reviving them is important—not just for nostalgia, but to protect Nepal’s rich culinary heritage and improve food diversity.
How to bring kabro pickle back
Promote in local communities
Raise awareness of kabro’s health benefits and traditional value.=
Feature in restaurants
Traditional eateries can include kabro pickle on their menus to attract curious food lovers.
Encourage small-scale production
Kabro pickle can be packaged and sold as a specialty item, offering economic opportunities for rural communities.
Kabro beyond Nepal
Kabro isn’t just known in Nepal. Cultures across Asia use it in their own ways. For example, in Northern Thailand, a delicious curry is made using the young leaves of Ficus lacor.
Here’s a simple way to prepare kabro curry with Chicken or Pork, inspired by Thai cuisine. Pick only the soft young leaves, removing the thick leaf stems. Fry Thai curry paste (or make your own curry paste) in a pot until aromatic. Add chicken or pork, and stir until the meat is well-coated and cooked. Pour in water and bring to a boil. Add the kabro leaves and boil until they are tender. Turn off the heat. The curry is ready to serve. This dish has a rich, earthy flavour and is a wonderful way to enjoy kabro beyond pickles.
Bringing back a lost flavor
The kabro pickle is a piece of Nepal’s food history. As we explore new tastes, we should not forget the value of the past. By reintroducing kabro into our diets, we are not only reconnecting with tradition but also making a healthy, sustainable choice. Let’s bring kabro back to our kitchens and preserve this forgotten gem for future generations.
The author is a London-based R&D chef
Democracy over dynasty: Nepal’s fight for a better future
In recent days, a strong debate has resurfaced in Nepal’s political landscape: monarchy versus democracy. Nepal has a long history of monarchy, particularly under the Shah dynasty, which ruled the country for centuries until the introduction of an interim constitution in 2007. The swift and peaceful transition from monarchy to a democratic republic was remarkable. The last king of Nepal, Gyanendra Shah, stepped down and left the palace without resistance, marking a historic moment in the nation’s political evolution.
Following the abolition of the monarchy, the country embraced a republican democratic system, which was widely welcomed by the public. However, political parties have since struggled to maintain the trust of the people. The transition was marred by inefficiencies, broken promises and poor governance. One key issue has been the adoption of an inflated and disorganized government structure, which has proven both costly and ineffective. The socialist orientation of the constitution has also had unintended consequences for Nepal’s economy and overall development.
Additionally, while federalism was introduced to decentralize power, the central government has been unwilling to truly empower local governments. This has created overlapping responsibilities and financial burdens at both the federal and local levels. Given the country’s limited economic resources, it has been impossible to meet the high expectations raised during political campaigns. Political parties have often made unrealistic promises, leading to widespread disillusionment. Many Nepalis, in turn, have placed faith in these false assurances, often without access to accurate, fact-based information. The rise of social media has further enabled the spread of misinformation, deepening public confusion and distrust. These issues have played a major role in fueling public support for autocratic monarchists.
According to the Merriam-Webster Dictionary, a monarch is a hereditary head of state with life tenure, whose powers range from symbolic to absolute. In the 21st century, the consolidation of inherited power and rule over the people is no longer acceptable. However, some monarchies continue to exist due to geopolitical factors. These monarchies tend to survive when they remain politically neutral, avoid scandals and maintain a limited ceremonial role. Unfortunately, Nepal’s monarchy has consistently failed in all these aspects.
Some monarchists have argued that Nepal should adopt a democratic monarchy and reinstate former King Gyanendra Shah. This is a baseless argument, rejected by most freedom-loving citizens. History shows that monarchs who seek absolute power are eventually forced to relinquish it or see it dramatically reduced. For instance, in 1920, King Christian X of Denmark dismissed his prime minister and government over a policy disagreement, which led to mass protests and a constitutional crisis. He was ultimately forced to back down. King Leopold III of Belgium spent five years in exile due to his refusal to comply with his government’s decisions.
The Shah dynasty in Nepal has never demonstrated a commitment to constitutional democracy. Instead, its kings repeatedly sought absolute power. Nepal's monarchy might have survived had King Gyanendra not staged a coup in 2005 to seize full control. This pattern of authoritarianism dates back further: King Mahendra executed a coup in 1960, dissolving democratic institutions and concentrating all power in his hands. King Birendra also maintained absolute rule through the Panchayat system, using political manipulation to hold onto power. Any credible historian can confirm that the Shah dynasty consistently pursued authoritarian governance.
Moreover, Nepal’s monarchy has been plagued by scandals—from the tragic royal massacre to allegations against Paras Shah involving illegal drug use, extrajudicial killings, sexual violence, extramarital affairs and ties to criminal networks. These controversies further eroded any moral legitimacy the monarchy once had.
The Shah dynasty has failed to govern Nepal effectively since the time of geographic unification under Prithvi Narayan Shah in 1768. After his reign, successive generations of the royal family were embroiled in internal power struggles, often marked by violence and betrayal. It was not uncommon for royal family members to conspire against or even kill one another in pursuit of power and personal gain. This violent legacy is one of many reasons why the Nepali people should not trust the monarchy or the Shah dynasty.
Even after the political reforms of the 1990s, the monarchy continued to act as an absolute authority, refusing to adapt to democratic norms. A large network of individuals benefited from the palace and the monarchical system, creating vested interest groups that further damaged the monarchy’s reputation. As a result, the institution lost the public’s trust,
The recent rise in pro-monarchy sentiments has negatively affected Nepal's progress toward prosperity and democratic development. Many Nepalis are understandably frustrated by ongoing political instability and economic hardship. However, this frustration has led some to overlook the value of democracy and entertain misguided notions of restoring the monarchy. There is no evidence that bringing back the monarchy would resolve even a fraction of Nepal’s current problems.
Certain political parties and crook networks have exploited pro-monarchy rhetoric to destabilize the democratic system and gain political advantage. Figures like Rabindra Mishra, Rajendra Lingden and Kamal Thapa appear to be leveraging this unrest to expand their influence. For them, whether the system is democratic or autocratic is irrelevant—they enjoy social, economic and political privileges either way. Their primary interest lies in gaining power, even if it means fueling division, protest or violence.
What the Nepali people truly desire is a prosperous nation where they can live freely and securely. Access to quality education, healthcare, public safety and a government that genuinely represents the people are the real needs of the moment. Yes, there is deep dissatisfaction with corruption, lack of opportunity, political instability and the unethical behavior of current leaders. But these issues are far more likely to be addressed within a democratic framework than under an autocratic monarchy.
The monarchy in Nepal was historically corrupt, repressive, autocratic and ineffective. Under its rule, people had no voice or freedom to speak out. Restoring such a system would be a step backward, not forward. Ultimately, Nepal’s future lies not in a return to monarchy but in strengthening its democratic institutions, promoting good governance and focusing on inclusive economic development.
Net profit of commercial banks surge 2.81 percent
Twenty commercial banks in the country collectively earned a net profit of Rs 43.49bn over the first eight months of fiscal year 2024-25. According to Nepal Rastra Bank (NRB), the net profit over the period is 2.81 percent more than Rs 42.3bn that these banks reported in the same period of the previous fiscal year.
Net profits of 11 commercial banks went up in the period, while nine saw a decline in their respective net profits. Nepal Bank Ltd logged the highest gain of 132.9 percent, with its net profit rising from
Rs 1.28bn in the first month of the previous fiscal year to Rs 2.98bn in the same period of the current fiscal year. Nepal Investment Mega Bank ltd (45.68 percent), Prabhu Bank (39.65 percent) and Global IME Bank Ltd (37.76 percent) also made significant net profit gains in the review period.
On the contrary, NIC Asia Bank (NIC) reported the biggest drop of 67.75 percent in its net profit.
NIC Asia’s net profit fell to Rs 819.99m in the first eight months of the current fiscal year, down from Rs 2.54bn in the same period of the previous fiscal year. Agricultural Development Bank Ltd (62.66 percent), Rastriya Banijya Bank Ltd (40.09 percent) and Kumari Bank Ltd (31.98 percent) also reported a significant drop in their net profits.
Nabil Bank led the pack with a net profit of Rs 4.78bn over the first eight months of the current fiscal year. Global IME Bank (Rs 4.72bn) and Nepal Investment Mega Bank (Rs 4.08bn) were the other banks with net profits in excess of Rs 4bn.
Meanwhile, three commercial banks reported profit below Rs 1bn. Agricultural Development Bank reported the lowest net profit of Rs 738.03m, followed by NIC Asia Bank and Kumari Bank Ltd with net profits of Rs 819.99m and Rs 969.11m, respectively. Bankers say rising non-performing loan levels and declining investments have hit profitability of banks.
Nepal’s governance crisis: A nation in paralysis
March 27, a family trip from Kathmandu to Dang became a grim metaphor for Nepal’s institutional decay. What should have been a 10-hour journey stretched into a 21-hour nightmare, with a single 14-kilometer stretch Daunee consuming ten agonizing hours, an indictment of criminally neglected infrastructure. The exhaustion of travelers—sleep-deprived, hungry, and choking in dust—mirrors the nation’s broader dysfunction: structurally intact yet crippled by systemic rot. The collapse is not limited to roads. Just days earlier, a devastating fire at a Dang plywood factory destroyed nearly Rs 400m in assets and left over 500 workers jobless.
Chief District Officer Krishna Prasad Lamsal’s desperate pleas for firefighting support from neighboring districts and municipalities laid bare the shocking lack of emergency preparedness. These are not isolated incidents. In Kathmandu, Janamorcha and Rastriya Prajatantra Party cadres blockaded Ratnapark and other areas, paralyzing the capital’s transit, while Prime Minister KP Oli squandered a high-level economic forum on rustic analogies of buffalo - ticks and political jibes rather than substantive policy. Together, they expose a governance trifecta: crumbling infrastructure, unchecked political obstructionism, and executive unseriousness.
Federalism’s broken promise
The 2015 Constitution of Nepal, informed by seminal federalism theories, promised transformative decentralization. Yet nine years into implementation, subnational governments remain systematically disempowered—chronically under-resourced, understaffed, and stripped of meaningful autonomy, while political elites (KP Oli, Deuba, Dahal, MK Nepal, BR Bhattarai, JN Khanal) engage in perpetual factionalism at the expense of federal governance.
This institutional failure manifests in alarming macroeconomic indicators: public debt now stands at 47 percent of GDP (Rs 27trn), exceeding the 35.43 percent sustainability threshold identified by NRB seasoned economist Laxmi Prasad Prasai (2024), with annual debt servicing consuming Rs 402bn. Concurrently, Nepal’s recent grey-listing by the Financial Action Task Force (FATF) for failing to combat sophisticated financial crimes including systemic tax evasion and fraud further underscores institutional decay. Compounding this crisis is a perverse bureaucratic culture where civil servants demand additional ‘facilitation fees’ from citizens for routine services, despite receiving full salaries and allowances. This rent-seeking behavior, institutionalized at all levels of government, epitomizes how Nepal’s federal transition has been hijacked—not by constitutional design, but by entrenched interests that perpetuate centralized predation under the guise of federalism.
Critical infrastructure—Narayanghat-Butwal Highway, Nagdhunga Tunnel, Melamchi Water, Mugline–Pokhara Highway—remains mired in delays. Meanwhile, 6,200 youths leave the country daily for foreign employment, a stark exodus underscoring Nepal’s failure to secure its own future. The Local Government Operation Act (2018) remains a paper tiger, with provincial postings treated as bureaucratic exile. Subnational governments face chronic 23 percent budget shortfalls, while resources are allocated based on electoral patronage rather than developmental need.
The path forward
Nepal stands at an inflection point. Federalism’s promise has been hijacked by a new mind set of centralism, where even hiring school teachers requires Kathmandu’s approval. Three urgent reforms are critical:
- Administrative federalism: Devolve personnel and fiscal authority to subnational governments, ending Singhdurbar’s suffocating control,
- Fiscal federalism with teeth: Guarantee provincial revenue autonomy and performance-based funding, and
- Enforced accountability: Implement independent audits of federal spending, as long demanded by the Financial Comptroller’s Office.
Without immediate corrective action, Nepal risks transforming its federal experiment from a beacon of post-conflict hope into yet another case study in constitutional failure. The stranded travelers, the jobless workers, and the millions trapped in this institutional purgatory deserve more than a government that mistakes inertia for governance. The time for reform is now—before the paralysis becomes permanent.