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The Government of Nepal expressed grief over the death of President of Iran, Dr Ebrahim Raisi in a helicopter crash on Sunday.

"We are deeply saddened to know about the passing away of His Excellency Dr. Seyyed Ebrahim Raisi, President, and His Excellency Dr. Hossein Amir Abdollahian, Minister of Foreign Affairs, of the Islamic Republic of Iran in the helicopter crash yesterday," the Ministry of Foreign Affairs posted on the social platform, X, today.

The Ministry also extended heartfelt condolences to the bereaved family members, and the government and people of Iran.

India and Nepal are deeply connected through natural resources, cultural heritage, and the shared philosophy of Sanatan Dharma. Their integrated people-to-people relations stand as a testament to a living culture and heritage. The significant trade and commerce through open border check posts underscore their economic relationship and its potential for growth via Indian territory.

Despite these factors defining their geo-strategic relationship, the India-Nepal dynamic hasn't seen the bold transformation observed in India-Bangladesh relations. Both Bangladesh and Nepal are set to graduate from Least Developed Country (LDC) status in 2026. Attention is now on their preparedness and ability to leverage opportunities with regional leaders like India, which is on track to become the world’s fourth-largest economy. 

The post-Covid Bangladesh showcases an economic success story, collaborating closely with India. The development of markets, demographic dividends, institutional growth, the Matarbari deep-sea port, and linking industrial value chains with North-East India are testaments to Bangladesh’s political will and strategic alignment with India, garnering support from Prime Minister Narendra Modi. This robust partnership has led to Bangladesh’s thriving supply chains, GDP growth, and overall progress.

In contrast, Nepal’s political instability hampers its potential. Since the general elections of November 2022, the government has been formed three times, with a fourth vote of confidence for the prime minister imminent. Mainstream political parties seem more focused on power struggles than on harnessing Nepal’s economic potential. A pressing concern is the exodus of Nepali youth seeking opportunities abroad, reflecting a domestic business environment marked by stagnation and lack of investment. The phenomenon of "shutter down" businesses indicates widespread disillusionment.

A critical question needs to be asked as to why there is a domestic lull, why the prime minister hasn’t called for an emergency meeting to discuss closure of businesses, up-and-running businesses fear of going bust, and young population leaving the country in droves. 

Despite these challenges, Nepal recently hosted the Third Investment Summit in Kathmandu on April 28-29, featuring over 50 countries, 800 foreign delegates, and 2200 domestic leaders. The summit began with enthusiastic statements from international diplomatic leaders and investment partners. However, domestic business leaders appeared detached, awaiting substantial reforms in domestic laws and regulations. The reliance on ordinances for partial legal amendments undermines sustainable growth and highlights the fragility of Nepal’s business ecosystem.

The Confederation of Nepalese Industries (CNI), one of the chambers of commerce, had called for amendments to 28 laws and regulations to encourage businesses and investors, but the government addressed only a part of their demand through ordinances just ahead of the summit. Ordinance-driven changes mar the momentum of sustainable growth and cannot be seen as a constructive step. 

Despite the three mainstream political leaders—Pushpa Kamal Dahal, Sher Bahadur Deuba and KP Sharma Oli—speaking in one voice about political consensus on Nepal’s readiness to receive foreign investment, the ordinance route amendments betrays the fragility of the country’s business ecosystem.

The summit did showcase success stories, notably India’s steady commitment and investment. Indian Minister Piyush Goyal’s endorsement of global investment in Nepal highlighted the potential for shared progress. Nepali leaders acknowledged India’s role in helping Nepal meet its Net Zero Commitments and assisting with clean energy exports. The potential export of clean energy to Bangladesh via India and the opening of Bangladeshi ports through North East India could be transformative for Nepal. However, realizing these opportunities requires robust connectivity, infrastructural development, a conducive business environment, and unrestricted access to resources and talent.

The question remains how Nepal’s political leadership will capitalize on the trust and strategic partnership with India to foster domestic growth and attract foreign investment. The future of Nepal’s economic and regional integration hinges on its ability to create a stable, business-friendly environment supported by both domestic and regional players.

New Nepal political map 2020 

On 25 April 2024, Nepal’s Cabinet approved printing of the new 100 rupee note with the new Nepal political map. The decision was not made public until 3 May 2024. 

Let’s relook at the recent developments relating to the India-Nepal boundary row: 

1. Nearly 98 percent of the boundary between India and Nepal has already been delineated.

2. In a unilateral move, bypassing the existing bilateral mechanism of boundary resolution with India, Nepal’s Parliament unanimously approved the new Nepal Political Map in June 2020 tabled by then KP Sharma Oli-led government.  

3. The new Nepal Map included the territories of Lipulekh, Limpiyadhura and Kalapani, the point of contention between India and Nepal.

4. When the Lower House of Nepal’s Parliament approved the new Map, India conveyed its readiness to talk and noted “that the onus is on the K P Sharma Oli government in Nepal to create a “positive and conducive atmosphere” for talks to resolve the row over Kalapani-Lipulekh region.”

5. Nepal overlooked Indian Statement of openness to talk after the Lower House approval and went ahead and tabled instead at the Upper House which then approved unanimously.

6. In the same year 2020, Nepal minted new coins Rs 1 and Rs 2 Coins with New Nepal Map. Similarly, there were news updates that the new Map was introduced in the school curriculum.

7. Repeatedly, the Indian Government expressed readiness to discuss the boundary issue under the existing bilateral framework. The results of the progress under the bilateral mechanism on this issue are not evident enough on social media.

8. In the meantime, the boundary issues did not stall both sides from pursuing the shared progress agenda.

9. During the Joint Presser of Prime Minister Dahal and Prime Minister Narendra Modi on 1 June 2023 at the time of Nepal’s Prime Minister Dahal’s visit to India, Prime Minister Modi said, “We will continue to work to take our relations to the height of the Himalayas. And in this spirit, we will resolve all the issues, be it the boundary issue or any other issue. I am happy to share that the partnership between India and Nepal has been a super hit.” The collaborative spirit also led to the mega announcement of Nepal exporting 10,000 MW to India over a period of 10 years. Such a cross-border energy trade partnership is expected to correct the trade deficit between India-Nepal and also foreseen to pave the way for Nepal’s clean energy export to Bangladesh and others in the long term.

10. In March 2024, the third time government post 2022 General Elections formed in Nepal (with five coalition partners namely CPN (Maoist Centre), NCP (UML), RSP, CPN (US), JSP under the prime ministership of Dahal. In specific, the coalition partners announce their “Minimum Policy Priority and Common Program” which includes “to further strengthen the geographical integrity, sovereignty, independence and freedom of Nepal, to advance effective diplomatic efforts to take back Nepali lands such as Limpiyadhura, Lipulekh, Kalapani, Susta, and to effectively manage the border”.

11. On 25 April, 2024, the Cabinet of Nepal Government passed the decision to print new 100 rupees notes with the new Nepal Map. The Cabinet decision was announced on 3 May 2024. 

The week in Nepal-India relations 

Let’s take a closer look at the period April 25–May 3 in Nepal-India relations:

1. The decision of the Cabinet meeting held on April 25 was made public only on May 3.

2. Some of the key events during the period April 25-May 3 included the Third Nepal Investment Summit held on April 28-29 which witnessed mega success stories on Indian Investment into Nepal; official Visit of G Murmu, the Comptroller Auditor General of India and signing of MoU with Toyam Raya, the Auditor General of Nepal on enhancing cooperation between the two Supreme Audit Institutions on May 2; and on May 3, the Chief Justice of India, DY Chandrachud arrived in Kathmandu for a 3-day visit at the invitation of Chief Justice of Nepal, Bishwambhar Prasad Shrestha.

Conclusions

In view of the above developments in India-Nepal relations, including a peek into the key week with announcements demonstrating political will, government decisions, high-level visits, success stories in multifaceted India-Nepal relations leaves me with following 10 conclusions:

1. India remains by the far the most strategic partner for Nepal, be it due to civilizational linkages, integrated People-to-People lives, largest trade partnership and importantly can help Nepal achieve its Net Zero Commitments by facilitating the export of clean energy from Nepal. India is also a key regional leader that can influence, support and navigate any global agenda for securing and safeguarding Mountain, River and Sea economies between Himalayas to Bay of Bengal. The high-level visits from Judiciary, Constitutional Agencies, Business Leaders show the spirit of collaboration and partnership as foreseen by Prime Minister Modi to take the India-Nepal relations to the “height of Himalayas” earlier at the Joint presser with Prime Minister Dahal in June 2023.

2. There is a boundary dispute between Nepal and India which calls for diplomacy and dialogue without any further delay. The Political Statements by Prime Minister Narendra Modi and Prime Minister Dahal have set the track in motion which must be followed in letter and spirit.

3. In the wake of the above, the political leadership in Nepal appears vague and unclear as to what they want by changing the goalposts year upon year with their most strategic partner. How does one reconcile the same Prime Minister Dahal at the Presser with Prime Minister Modi in June 2023 speaking of the “solid foundation built on the one hand by rich tradition of civilizational, cultural and socio-economic linkage and on the other by the firm commitment of the two counties to the time-tested principle of sovereign equality, mutual respect, understanding and cooperation”, acknowledging Indian investment in Nepal as a keynote success story at the Nepal Investment Summit on April 2024 while his cabinet then approves new Rupees 100 Banknotes with “unilateral” new Map and announces in May 2024. Is there leadership void to pursue National Issues and development agenda in Nepal? If Bangladesh can achieve both with Neighbourhood First spirit, where does Nepal default and why?

4. One may also question here how effectively did the Nepal Government evaluate India-Nepal partnership potential during the launch of “minimum policy priority and common program” in March 2024. Did Prime Minister Dahal convince his coalition partners of the understanding achieved with India and how he intends to leverage this relationship with Prime Minister Modi for the welfare of the people of Nepal. Prime Minister Dahal could have focused on seeking investment and support in technological sector, engagement with Indian Corporate as Tech Mahindra, TCS, Infosys, Wipro for the youth of Nepal, agreed for Skills related investments along the borders, sought Indian support for three AIIMS level Healthcare Institutions in Nepal (West, Centre and East) and secured a guaranteed seat with prime educational institutions as IITs/ IIMs/ors. for the top brightest students of Nepal.

5. Did Prime Minister Dahal fall for an agenda of “nationalism” for his own survival? Or did the coalition partners like former Prime Minister KP Sharma Oli, whose national appeal thrives on call for “nationalism”, dissuaded him from the development agenda for the people of Nepal? The two communist leaders of Nepal have taken each other for a ride and still continue to do so at the cost of National Interest. In the frenzy of domestic vote bank scoring and outsmarting each other, both have jeopardized the gains during their respective tenure with India which they could have leveraged for welfare of Nepali people and thus strengthened their foothold in Nepal.

6. Now let’s turn towards India—the Indian media frenzy with Nepal’s Cabinet decision of new banknotes with new Nepal map was dramatic and sensationalism driven. Their overkill of imagination can be seen with two potential conclusions, a) Nepal is hostile towards India and India-Nepal relation at its worst, b) Nepal is in China’s lap and that the communist leaders are being controlled and manipulated by China. Unless and until, the importance of domestic mileage in Nepali politics is understood and appreciated, such hasty conclusions will lead to more provocation and not resolution.

7. To begin with, one shouldn’t forget that Nepal’s Parliament already approved the New Nepal Map in 2020 and thus its implementation is an internal matter of Nepal. Nepal had already minted Nepali Coins of denomination Rs 1 and Rs 2 in 2020. Whether they decide and mint/ print 10/20/100 or more is an internal matter! The issue should have been the timely resolution after the statement of Prime Minister Modi at the Joint Presser in June 2023. Media overaction with China linkages mar dialogue and diplomacy in India as in Nepal. 

8. Indian media and Nepali media should have mentioned about the embarrassment caused to the leadership at the Judiciary and Constitutional Agencies of both India and Nepal when such a Cabinet decision was made public. (Referring to the visits of CAG Murmu and CJI DY Chandrachud to Nepal in May 2024)

9. Last but not least, while India remains focused on people-to-people and economic relations in Nepal and is also well aware of the domestic politics compulsions driving behavior of the Nepali leaders, it must therefore work with rigor to remove the irritants in matters of national consideration to Nepal. It is imperative that India is seen as more indifferent to political constitutions. The pace of developments and economic interventions from India should be driven by welfare and progress of Nepali people. Access to essentials such as electricity, onions, tea or trade and commerce related approvals shouldn’t become a one step forward and two steps back decision. It is also time to upscale the HICDP intervention to move away from school buildings to big ticket investment in skills and vocational institutes, healthcare institutions at the Province level and IIT/IIM at the capital level. It is only timely and relevant that Modi 3.0 has a reinvigorated Nepal policy that takes Nepal along in #Amritkaal and not let domestic politics compulsions of Nepal dent the spirit of Neighbourhood First

10. The two countries are duty bound to preserve and nurture their unique shared heritage of Vasudhaiva Kutumbakam where human and nature’s coexistence can be seen as a way of life in a family and society, in the decision making and governance at the State level. It is imperative for both India-Nepal to recognize their richness of Sanatan Dharma and strive together to protect and nurture its core principles of plurality and freedom of expression. Man-made political boundaries do not and cannot split the custodians of Dharma—as seen in the lives of SitaRam or Machendranath and Gorakhnath, or in the journey of Buddha.

It is time to correct the course and revive Kathmandu to Kashi understanding before it’s too late. 

The author is New Delhi-based financial, geopolitical and security analyst. Views are personal

A mountainous country, Nepal, has long been raising voice in the international forums on the impact of climate change on the Himalayas.

As a result of this, the UN Conference on Climate Change (COP-28) held last year for the first time incorporated in its decision the impact of climate change on the Himalayas, and has been emphasizing on the effective implementation of the responses to lessen this impact.

In this connection, Nepal is hosting an 'International Dialogue' on May 22 and 23 in Kathmandu to anchor this issue internationally under its own leadership. 

Experts from 23 countries are participating in the two-day event that aims to strengthen coordination and prioritize mountain-centric priorities and actions within the broader context of climate change. The theme of the dialogue is, “Mountains, People, and Climate Change”.

More than 200 delegates from the mountainous countries including Nepal and the island nations, the international community, development partners, the international non-governmental organizations, the private sector as well as the representatives of civil society will take part in the dialogue.

Joint Secretary at the Ministry of Forests and Environment, Dr Maheshwar Dhakal said that the objective of this dialogue of experts on climate change issues is to prioritize and strengthen in a coordinated way works related to the mountain ecosystem-based climate resilience.

"Climate change is a global agenda and mountainous countries like Nepal have been facing more problems related to it. We have prepared to establish the issue of adverse impact of climate change on mountainous countries under Nepal's leadership, further internationalizing this topic through the dialogue," he said. 

Joint Secretary Dhakal also said the dialogue aims to enhance the negotiating capacity of mountainous countries on climate change and to exert pressure on the international community to mobilize sources required for climate adaptation and reduction of climate change impacts.

"The climate change incidents are increasing day by day. They are comparatively more in the mountainous and hilly regions. Therefore, this International Dialogue will also be useful for raising institutional voice in a stronger manner," he added.

The Chairperson of the UNFCCC Subsidiary Body for Implementation (SBI) and Subsidiary Body for Scientific and Technological Advice (SBSTA) will also attend the dialogue. Similarly, the representatives of the UNFCCC Secretariat and the representatives of UN agencies, the World Bank, the Asian Development Bank and other agencies will also participate in the discussions.

The Dialogue has the goal of forging collaboration among the mountainous countries and the stakeholders in the programs under the UNFCCC.

Chief of the Ministry's Climate Change Management Division, Joint Secretary Dr Buddhi Sagar Poudel said this conference will help in understanding the issues of climate change impact in the Himalayan region and their solution at a deeper level.

"Our conclusion is that this Dialogue will contribute to integrate the expertise and experiences on the topic and also to develop mountain climate resilience strategy along with common resolve," Poudel added.

Prime Minister Pushpa Kamal Dahal 'Prachanda' is scheduled to inaugurate the Dialogue featuring nine sessions covering three major thematic issues. These sessions will focus on climate change science, mountaineering facts and data, measures for mountaineering resilience based on nature, and the exploration of potential sources and opportunities for the protection of mountain regions.

The Dialogue will delve into the impact of climate change, its crisis and risks, climate change policies for prosperity, climate change adaptation in local leadership, climate change justice, gender equality, and local concerns. Moreover, it will press for the promotion of investment in clean and green energy, climate finance accessibility, and the enhancement of international and regional partnerships to tackle climate change issues.

Dr Popular Gentle, Climate Change and Environment Advisor to Prime Minister Dahal, hopes that the Dialogue will provide a platform to discuss and highlight the impact of climate change and its risks in mountainous regions.

It aims to identify common climate agendas and problems faced by mountain countries, by advocating for the rights of communities residing in or depending on the Himalayan region regarding climate change matters, he added.

The event also aims to minimize the loss caused by climate change in mountain communities' lives and livelihoods by promoting adaptation measures, clean energy, innovations, and research exploration. Capacity enhancement for mountain communities and the promotion of multi party cooperation and partnership on climate change finance will be stressed.

The Dialogue aims to prepare a substantive roadmap and strategies for the 60th session of the Subsidiary Body for Scientific and Technological Advice and the Body for Implementation (SB 60) of the United Nations Framework Convention on Climate Change (UNFCCC) in Bonn, Germany, scheduled for June 3-13.

The mountain region serves as a primary host for over 15 percent of the world's population's needs for food, shelter, and clothing, as well as habitats for over 15 percent of wildlife, including plants. However, mountain countries have been deprived of the expected benefits from this because they have either failed to raise their issues and concerns strongly in international forums or have not received international recognition.

The issue of mountains was accepted by the global community for the first time at the Dubai Conference. The COP-28 held in Dubai, United Arab Emirates from November 30 to December 12 decided for the first time about the climate crisis surfacing in the mountainous region. The conference was instructed to organize an "expert dialogue on mountains, humans and climate change" at the 60th meeting of UNFCCC's "SBSTA" to be held in June.

Ever since the COP-15 in Copenhagen, Denmark in 2009, the effect of climate change on the Himalayan ecosystem has been drawing the world's attention. In most of the conferences since then, Nepal has been raising the issue of Himalayas with a high priority, but relatively little has been achieved in this regard. The Secretary General of the United Nations, Antonio Guterres, mentioned Nepal's name at the opening ceremony of the COP-28, mentioning the impact on the mountains due to the increase in global temperature.

The secretary general also visited Everest and Annapurna base area last November on the eve of the conference. His visit also made it easier for Nepal to raise the issue of the Himalayas in the global arena. Under the leadership of Prime Minister Dahal, Nepal organized a high-level round-table meeting for the first time with the presentation of the issue of mountain regions in the COP-28.

According to the Paris Agreement, the world community has agreed not to allow the temperature of the earth to rise above 1.5 degrees Celsius by the end of this century. It is estimated that before 2050, the temperature of the Himalayan region will exceed 1.8 degrees Celsius. The increase in temperature has increased the risk of melting two-thirds of the glaciers of the mountains in this region.

Analyzing the data of the previous decade, the temperature in the mountains is increasing at a ratio of zero.05 degrees Celsius per decade. With the increase in temperature, the melting of glaciers is also increasing. Its direct impact is from the ecosystem of the Himalayan region to the island nation.

Due to the increase in temperature during the period from 1980 to 2010, the area of the glacier has decreased by 25 percent. According to the International Centre for Integrated Mountain Development (ICIMOD), there are currently 2,700 glaciers in Nepal and 21 of them are at risk, while 25 glaciers in the Autonomous Region of China and one in India are at risk.

The US Indo-Pacific Strategy (IPS) was a hotly debated topic in political and diplomatic circles from 2019 to 2022, though discussions have subsided somewhat since then. In Nepal, discourse on the IPS has been dominated by its security and strategic components, with support for this initiative often viewed as joining the US-led military alliance.

In a veiled reference to IPS, Nepali leaders often say that Nepal cannot and should not join any military alliances as it goes against the country’s long-standing commitment to the non-alignment policy. Bolstering Indo-Pacific security is a key part of the IPS which faced stiff opposition in Nepal after the country was mentioned in the 2019 Indo-Pacific Strategy Report by the US Department of Defense.

Additionally, some US documents claimed that Nepal had joined the State Partnership Program (SPP), prompting Nepal to reportedly request for removal from the SPP. Some SPP documents, however, still include Nepal. Nepali leaders also briefly put off the Millennium Challenge Corporation (MCC) project, stating that it was part of the IPS. Discussions on the IPS in Nepal are framed around these two issues, but the strategy encompasses much more.

For the US and international strategic community, the 2022 Indo-Pacific Strategy unveiled by the Biden administration serves as the guiding document on IPS and its execution. The Trump administration had placed the military component as the central pillar of the strategy which landed it in controversy. So, the Biden administration introduced a new Indo-Pacific Strategy (IPS), which has now entered its third year of implementation. US officials are currently occupied with compiling progress reports on a country-by-country basis. Contrary to the Trump administration’s confrontational approach toward China, the Biden administration’s IPS adopts a different stance. It consists of five pillars: promoting a free and open Indo-Pacific, fostering connections within and beyond the region, driving Indo-Pacific prosperity, enhancing Indo-Pacific security, and building regional resilience to 21st-century transnational threats.  Biden’s IPS focuses more on economic cooperation, capacity building of regional partners, and the view that US resources alone are insufficient. 

A frequently asked question in Nepal is whether the country is already a part of the IPS. This is a tricky question and the answer can be both yes and no. Those who view the IPS solely through the prism of security and military cooperation say Nepal is not involved. However, considering all components of the strategy and its implementation, Nepal can be seen as a part of the IPS. US officials and experts have often clarified that the IPS is an overarching framework outlining how the US, as a superpower, envisions the Indo-Pacific region. Nepal, being the landlocked country situated between India and China, is a high priority in the region. US officials have stated in documents that ‘Nepal can play a vital role in the Indo-Pacific region’ and that Nepal is ‘a valued partner in the Indo-Pacific’.

The broader context suggests Nepal is indeed a high priority for the US within its overarching Indo-Pacific policy. In recent years, the US has stepped up diplomatic engagements with Nepal through high-level visits. These visits have focused on increasing US development assistance to Nepal, attracting private investment, promoting democracy and human rights, curbing corruption, and boosting collaboration across sectors. At the same time, the IMF, World Bank and other financial institutions have also intensified their engagements with Nepal. The MCC compact is a case in point.

Looking at how the IPS is being implemented in Nepal through various US agencies like USAID, there are investments “to strengthen democratic institutions for good governance and human rights; foster sustainable, inclusive, transparent economic growth; and improve resilience to health and climate threats” which is the thrust of IPS.

Let’s consider some specific cases now. The first pillar of the IPS is a free and open Indo-Pacific. Targeting the first pillar, the US has been supporting Nepal across domains like governance, democratic values, security and stability. This includes working with Nepal’s media, civil society and key institutions to build capacity, as well as security cooperation with Nepali forces on disaster preparedness, humanitarian assistance, border security, and more.

US agencies are actively engaged in Nepal across other pillars of the IPS. The US closely coordinates with allies and partners, recognizing its resources alone are insufficient for the region's challenges. Hence, allies like Japan, South Korea, India, Australia, and the UK are also expanding their presence and investments aligned with their own Indo-Pacific outlooks.

While the IPS has many facets, discussions and understanding in Nepal have been narrow. Obviously, there are challenges in dealing with the strategic initiatives, but time has come to make an understanding and position about what IPS means to Nepal. In the lack of an official government position, politicians and bureaucrats face difficulties addressing IPS-related issues and projects, particularly with the US.

As Nepal desperately seeks investment across sectors, the US and its partners are exploring opportunities, alongside emerging economies eyeing Nepal. Rather than shying away or viewing the IPS solely as a military strategy, there is a need for open dialogue to build an accurate understanding. The IPS involves US engagement with Nepal on clean energy, climate change, disaster preparedness and facilitating regional power trading agreements. On energy cooperation, the US is working closely with south Asian countries including India, Bangladesh, Bhutan and Nepal. The US also played a vital role in facilitating a regional power trading agreement in South Asia. Regarding climate change, the US partners with various organizations in Nepal, particularly targeting youth engagement—an area where Nepal can greatly benefit as it already faces impacts from climate-induced disasters. Another associated issue is preparedness for disaster response and relief operations. 

There is a need to build an understanding of the IPS to provide clear thoughts and ideas on how to address these challenges. Better comprehension of the multifaceted IPS can offer Nepal significant benefits. However, there are inherent risks if Nepal fails to develop a uniform and consensus-based position on it.

Nepal's journey through democracy has been marked by the complex coalition politics in a hung parliament. This phenomenon, where no single party secures a majority, presents formidable obstacles to achieving sustainable development and effective governance.

Hung Parliament and Political Instability

The recurring hung parliament has been deeply woven into Nepal's democratic fabric. The nation’s multiparty landscape, encompassing diverse ideologies and regional interests, complicates the government formation process. Despite periods of single-party dominance since the political change of 1990, political maneuvering and dissent frequently lead to hung parliaments and subsequent instability.

Between November 1994 and May 1999, Nepal faced significant instability due to its first hung parliament. This led to the outbreak of decade-long Maoist insurgency. Although the insurgency ended with the signing of the Comprehensive Peace Accord (CPA) on November 21, 2006, political instability has persisted in the country.

The 1999 general election, held amidst the shadow of insurgency, saw the Nepali Congress secure a comfortable majority in parliament, winning 111 out of 205 seats. Despite this, the political instability continued in the country, marked by brief tenures of three prime ministers.

Following the signing of CPA, the 2008 general election elected the first Constituent Assembly tasked with drafting a new constitution. However, the Constituent Assembly lacked a single-party majority, with the Maoists securing 120 seats out of 240 under the first-past-the-post system. The proportional representation system, accounting for 335 seats, further complicated the Constituent Assembly's dynamics, leading to a hung assembly plagued by political maneuvering and ethical breaches.

Political instability persists in Nepal despite the eventual promulgation of the new constitution in 2015 by the second Constituent Assembly. The complexities of coalition politics, compounded by the governance and representation challenges, continue to shape the nation's democratic narrative to this day.

Causes of Political Instability

Proportional representation, which was introduced alongside the first-past-the-post system in Nepal's electoral system, aimed to foster inclusivity in the political landscape. However, this system has presented its own set of challenges for the country. Issues such as vote dispersion, coalition politics and regional dynamics have contributed to the complexity of governance. Additionally, criticisms of nepotism and electoral intricacies have exacerbated the situation.

Under the proportional representation system, 110 out of 275 seats in the House of Representatives are allocated based on the proportion of votes that political parties receive nationally or within specific electoral regions. This allows parties with significant overall support to secure representation in Parliament even if they do not win in individual constituencies.

The proportional representation system was introduced to address historical marginalization and ensure the representation of all segments of society in the legislative process. By providing a platform for smaller parties and minority groups, proportional representation aimed to enhance the inclusivity of Nepal's democracy. However, its implementation is becoming challenging due to concerns about political fragmentation, struggles with coalition governance, and allegations of nepotism in candidate selection 

After the recent general election, Nepal has seen another hung parliament. The trend of minority parties wielding disproportionate influence, alongside the perceived helplessness of larger parties, has disrupted democratic norms and contributed to economic setbacks in the country.

The Darker Side of Politics

The growing use of political influence to evade justice and perpetrate crime is a persistent challenge that plagues many societies. This issue arises when individuals or groups in positions of political power abuse their authority to manipulate legal processes, evade accountability and shield themselves or their associates from prosecution for criminal activities.

Interference in Legal Proceedings: Politically powerful individuals may exert pressure on law enforcement agencies, prosecutors, judges and other judicial bodies to manipulate investigations, delay legal proceedings, or influence judicial outcomes in their favor. This interference undermines the rule of law and erodes public trust in the justice system.

Corruption and Bribery: Politicians may engage in corrupt practices, such as bribery or extortion, to obstruct investigations, tamper with evidence, or secure favorable judgments. Corrupt alliances between politicians and criminal elements further exacerbate the problem, enabling organized crime networks to operate with impunity.

Political Patronage: Politicians may provide protection or patronage to criminal elements in exchange for political support, financial contributions or other benefits. This symbiotic relationship between politics and crime perpetuates a culture of impunity and undermines efforts to combat criminal activities.

Legal Loopholes and Immunity: Politicians may exploit legal loopholes or abuse their legislative powers to enact laws or policies that grant them immunity from prosecution or shield them from accountability for criminal behavior. This impunity emboldens individuals to engage in illicit activities without fear of consequences.

Manipulation of Public Perception: Politically influential individuals or their allies may attempt to manipulate public opinion through propaganda, misinformation, or media control to portray themselves as victims or deflect attention away from their criminal activities. This manipulation can undermine public awareness of the gravity of the crimes committed and impede efforts to hold perpetrators accountable.

Way Forward

It has become necessary to address the issue of hung parliament to ensure stable governance and democratic functioning in Nepal. One potential solution could involve reconsidering the electoral system, either adopting solely the first-past-the-post or proportional representation method. Maintaining both systems simultaneously risks perpetuating instability. Swift action is essential to mitigate the risks posed by hung parliaments before they escalate further. Remember, you cannot have your cake and eat it too.

Prime Minister Pushpa Kamal Dahal has said the government has a policy of promoting the culture of innovation and entrepreneurship, simplifying the investment process.

Inaugurating the 'Nepal-EU Business Forum' organized today on the occasion of the 50th anniversary of establishment of Nepal-EU diplomatic relations, Prime Minister Dahal shared that the government was committed to ensure openness for business.

"Nepal's policy of creating a strong economic structure increases international partnership and helps in economic expansion," he explained.

Stating that there was enthusiastic participation of more than 50 countries across the world in the recent investment summit held in Nepal, the PM said a message that the international community was excited to invest in Nepal was disseminated.

On the occasion, the Prime Minister underscored that Nepal was ready for further collaboration with EU-member countries in Nepal's effort of bringing in foreign investment, according to PM Dahal's Private Secretariat.

Stating that Nepal has the goal of graduating from the least developed country status until 2026 and of achieving the Sustainable Development Goals by 2030, the Prime Minister pointed out the need of adequate investment and transfer of the required technology by the foreign partners to fulfill these goals.

He shared on the occasion that the government has recently initiated the 'automated route' for foreign direct investment up to Rs 500 million and expressed the belief that with this initiation will enter the managerial capacity and capital in Nepal.

"We have approved some applications for investment received via the automated route. We have been trying to strengthen our initiatives through international partners. This will bring not only capital but also the technical and managerial expertise in Nepal," he said.

Making it clear that the Government of Nepal has given priority to the environmental sustainability and the green economy that is practicable, Prime Minister Dahal said the government is consistently carrying out works on the promotion of renewable energy projects, sustainable agriculture practices and attainment of environmental goals.

"Our development activities are in harmony with the national interest and the global environmental objectives. Nepal is always committed to the Paris Agreement and we have been actively including climate actions in our development plans and programs," he added.

The Prime Minister reiterated that Nepal is committed to reach the zero-carbon emission milestone by 2045 despite the resource and capacity gap, and the constant challenges invited by the climate change.

Understanding road safety involves more than just following traffic rules; it signifies a profound commitment to saving lives, protecting families, supporting economic growth, and achieving Sustainable Development Goals (SDGs). This broader perspective emphasizes the positive impact that prioritizing road safety can have on the society as a whole. The sobering reality, highlighted by the World Health Organization’s Global Status Report on Road Safety 2023, indicates a slight decrease in annual road traffic deaths to 1.19m. This suggests that ongoing efforts to enhance road safety are yielding results, emphasizing the potential for significant reductions in fatalities through the application of proven measures. Notably, road crashes stand as the primary cause of death among children and young adults aged five to 29, with vulnerable road users constituting more than half of global road traffic fatalities.

Despite endeavors to improve road safety, the toll of mobility remains disproportionately high, particularly among pedestrians, cyclists, and motorcyclists in low and middle-income countries (LMICs). Road crashes not only pose a human tragedy and a major public health concern but also impose substantial socioeconomic burdens, especially on impoverished communities. Collective economic costs of road traffic fatalities and injuries in LMICs range from two to six percent of the gross domestic product (GDP). In response to this pressing reality, the UN General Assembly initiated the Decade of Action for Road Safety 2021-2030, urging governments, organizations and individuals to prioritize road safety measures.

Toward safer roads

Through awareness drives and policy reforms, Nepal is striving to cultivate a more responsible and conscientious approach to road usage. In 2022, the Ministry of Physical Infrastructure and Transport published a 

‘Nepal Road Safety Action Plan (2021-2030)’, reflecting concerted efforts to address road safety issues. Activities of the Kathmandu Valley Traffic Police Office like the ‘Traffic Awareness Special Campaign-2081’ exemplify this commitment. The focal ministry of road safety is the Ministry of Physical Infrastructure and Transport, which collaborates with various ministries such as the Ministry of Home Affairs, Ministry of Education, Science, and Technology, and the Ministry of Health and Population. Among them, the home ministry has played a pivotal role in spearheading enforcement initiatives to enhance road safety. The ‘Traffic Awareness Special Campaign-2081’, launched in April, aimed to cultivate a more civilized road culture through heightened awareness among the public. Furthermore, the ministry has announced plans for special operations geared toward enhancing the reliability and safety of public transportation.

Helmet safety and beyond

Helmet use is mandatory for both riders and pillion riders according to the Vehicle and Transport Management Act 2049 BS. Ensuring road safety involves various elements, but prioritizing low-cost, high-yield enforcement measures is crucial. Among these interventions, helmet safety stands out as paramount, especially considering that motorcycles account for over 80 percent of vehicles and pose the highest risk on the roads. The importance of wearing helmets, particularly for bikers and pillion-riders, cannot be overstated. Head trauma remains a leading cause of death in motorcycle accidents, yet quality helmets can significantly reduce the risk of fatalities by over six times and decrease the likelihood of brain injuries by up to 74 percent.

The dedication of Nepal Police in enforcing helmet safety regulations is admirable, despite resource constraints. However, effective enforcement requires strong support from various stakeholders, including the home ministry, health ministry, civil society organizations, professional networks and development partners.

Global efforts

Road safety is not solely a concern for Nepal; it’s a global imperative. According to WHO, the majority of road traffic fatalities occur in low- and middle-income countries, with the highest fatality rates observed among low-income countries, at 21 deaths per 100,000 population. This underscores the urgent need for international cooperation and solidarity. Road crashes have caused immense loss of human lives and hindered economic growth and sustainable development in Nepal. The number of casualties from road crashes has surged from 1,131 in 2008 to 2,789 in 2018, marking a staggering increase of 146.6 percent. The economic toll of road traffic injuries, with treatment costs and loss of productivity, amounts to an estimated three percent of annual GDP for many countries.

For instance, Nepal can draw valuable lessons from Thailand’s approach to post-crash care management. Under the Ministry of Interior’s National Directing Center for Road Safety, alongside the Ministry of Public Health and other road safety foundations, Thailand has implemented key activities to reduce its fatality burden, including leadership and networking, data integration and policy advocacy, and strengthening post-crash response.

Key change agents

The state of road safety in Nepal faces numerous challenges, with one of the primary issues being the limited capacity of the National Road Safety Council (NRSC) to serve as the lead agency for road safety, crucial for implementing the National Road Safety Action Plan (NRSAP 2021-2030). NRSC serves as the central coordinating body with the aim of reducing accidents and promoting safer roads nationwide. Its primary function is to foster coordination among various agencies and spearhead the implementation of safety measures. Also, the Road Safety Society Nepal, is dedicated to fostering a safe driving culture across the country. As a national nonprofit organization, it plays a vital role in facilitating the development of effective road safety practices through a range of initiatives. However, there is a pressing need for further innovative and participatory engagements to amplify its impact.

Encouragingly, private sector entities like Pathao and InDrive, tech startups revolutionizing transportation in Nepal, have begun integrating helmet safety into their policies and services. While these efforts are worthy, there is room for improvement. These companies have the opportunity to lead by example and prioritize passenger safety, particularly through the consistent use of helmets.

Views are personal

Deputy Prime Minister and Minister for Foreign Affairs Narayan Kaji Shrestha said that Nepal and India being close neighbors have built a longstanding history of mutual friendship and cooperation.

The salient features of Nepal-India ties include geographical proximity; religious, cultural and linguistic relations; economic engagement and intensely flourished people-to-people relations, the minister noted.

In his closing remarks at the third series of lectures launched by the Ministry of Foreign Affairs in honor of former Ambassador and former Foreign Secretary Prof Yadunath Khanal on Tuesday evening, he said Nepal-India relations are nurtured by nature, bound by cultural affinity, comprehensive, multi-dimensional and incomparable.

"But there are some bilateral issues historically left behind that need to be resolved through dialogue and diplomatic channels based on historical facts and in accordance with the spirit of good neighborhood", he said.

The third series was focused on Nepal-India relations featuring Prof C Rajmohan, former Director of the Academy of South Asian Studies, as the keynote speaker.

This will pave the way for taking Nepal-India relations to a new height, for which the Government of Nepal is committed, DPM Shrestha said, reiterating that the bilateral relations are based on sovereign equality, peaceful coexistence, goodwill, mutual trust and understanding.

Minister Shrestha said the exchange of high-level visits has helped strengthen the relations and enhance partnership in many fields.

Sharing that a consultative mechanism has been established to facilitate cooperation in various areas of bilateral relations, he said such mechanisms have helped enhance mutual cooperation and partnership.

There is wider scope for cooperation in various areas of mutual benefits, he said that partnership in the energy sector is important. "Proper utilization of Nepal’s immense potential of hydropower generation can transform the development landscape of our region into clean energy", he said.

"Cross-border connectivity is being expanded to facilitate trade and transit. We need to further expand and improve this network", Minister Shrestha said, adding that both countries should find ways to make mutual trade profitable.

Stating that the multinational companies operating in Nepal have withdrawn their money from their investments, he said Nepal has become an attractive destination for investment.

There is a lot of scope for cooperation between Nepal and India in the field of information technology, the Foreign Minister stressed the need to expand bilateral cooperation in the field of education, science and technology.

Stating that Nepal's development and economic prosperity would also serve the interests of its neighbors, he said a peaceful neighborhood was Nepal's desire. 

Prof Rajmohan said Nepal and India have similar global challenges and both the countries are facing them. Stating that small countries have been affected by the power struggle between the powerful nations, he stressed the need for the political leadership to find a solution to it carefully.

Noting that Kathmandu and New Delhi should learn from Beijing, he said China has improved relations with Russia and the USA as per the need. Although Beijing's relations with Washington now are straining, relations with Moscow are strong, he said.

Foreign Secretary Sewa Lamsal informed that the lecture series has been organized to enhance thematic knowledge, discuss with the scholars about the existing foreign policy and practices of the country.

Khanal had served the nation as foreign secretary for two terms and ambassador to China, India and the United States. The Ministry of Foreign Affairs has started this lecture series in the honor of the country's renowned diplomat Prof Khanal.

Nepal’s legal and institutional reforms under fiscal federalism and public financial management at the provincial and local levels have continued but at a moderate pace, says the World Bank’s Nepal Fiscal Federalism Update 2024.

A reduction of available financial resources in fiscal year 2023 for provincial and local governments, mainly due to a decrease in federal revenue, led to the first fiscal deficit at the subnational level since the outset of fiscal federalism in 2017.

To enhance the outcomes of fiscal federalism and public financial management including improved revenue generation for all three tiers of government, the Fiscal Federalism Coordination Division at the Ministry of Finance was designated to coordinate public financial management reform efforts and the preparation and implementation of a Fiscal Federalism Roadmap.

This report provides a comprehensive review of the progress of fiscal federalism in Nepal. The recommendations are well aligned with our national-level vision on smoothing the fiscal transfers to help subnational governments carry out their responsibilities effectively. The report also informs and supports our ongoing efforts to clarify responsibilities among the three tiers of government and advance fiscal federalism,” said Dr Baikuntha Aryal, Chief Secretary.

Building on the first edition of the Nepal Fiscal Federalism Update, the 2024 edition explores in-depth the key pillars of fiscal federalism in Nepal: Revenue Assignment and Administration; Expenditure Assignment and Administration; Inter-Governmental Fiscal Transfers; Borrowing and Capital Finance; and Fiscal Revenue from Natural Resources. It recommends specific measures to upgrade the Inter-Governmental Fiscal Transfer system and establish a consolidated public financial management performance database that includes data from the subnational levels to enhance evidence-based decision making and transparency.

“The report highlights the need to upgrade institutional arrangements for the Intergovernmental Fiscal Transfers system to make the transfers more needs-based and timely, and to increase the fiscal autonomy of provincial and local governments, in order to improve fiscal federalism outcomes,” said Balananda Paudel, Chairman of the National Natural Resources and Fiscal Commission. The report also recommends strengthening provincial and local-level institutional arrangements for fiscal federalism and public financial management operations, including actions to improve budget credibility to improve delivery of services by subnational governments.

“Fiscal Federalism is a foundation for sustained service delivery by provincial and local governments. They need adequate financial resources and the ability to make spending decisions at the subnational level, in the spirit of federalism and the Constitution,” said Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka. “The World Bank is committed to supporting the Government of Nepal, in close collaboration with other development partners, to further solidify fiscal federalism in Nepal.”

Ambassador of Sweden to Nepal, Jan Thesleff, is visiting Kathmandu from May 14 to 17 together with representatives from Swedish businesses and government officials from the Swedish Energy Agency.

During his visit, Ambassador Thesleff will participate in the second edition of the EU-Nepal Business Forum taking place on May 15-16, and meet with the ministers, including Minister for Foreign Affairs Narayan Kaji Shrestha.

The business delegation includes companies such as Hexagon, Hitachi Energy and Saab.

Since the establishment of diplomatic ties between Sweden and Nepal in June 1960, the bilateral relations have prospered to a strong partnership founded on mutual respect, understanding and friendship over the decades, according to a press release issued by the Swedish Embassy in New Delhi.

The countries have an ongoing cooperation on climate change and matters related to Article 6 of the Paris Agreement.

“By participating in the EU-Nepal Business Forum, Sweden aims to further increase trade between our two nations and explore potential business opportunities involving Swedish and Nepalese companies," Ambassador Thesleff said, expressing hope that the bilateral cooperation with Nepal would be strengthened on climate action and the advancement of the sustainable development goals.

In the past Nepali month of Chaitra (mid-March to mid-April), authorities arrested 28 Bangladeshi nationals from various parts of the country. 

Among them, 18 had overstayed their visa and were illegally residing in Nepal. Ten others were apprehended for taking hostage and torturing several men from their own country at a Kathmandu-based hotel. They had brought the victims to Nepal with the promise of sending them to countries like the US, Canada, Italy, and Croatia. The accused had also taken hundreds of thousands of dollars from the victims. 

That same month, police arrested four Pakistani men for confining six Sri Lankans in two hotels in Kathmandu. According to Metropolitan Police Range spokesperson Ravindra Regmi, Pakistani and Sri Lankan agents collaborated to transport the hostages to Kathmandu on the pretext of flying them to Europe and other destinations. 

“In the process, they received substantial sums from them. Six Sri Lankan citizens paid 7.5m Sri Lankan rupees to the agents, with additional payments in USD,” says Regmi.

Similarly on Feb 15, a team from the District Police Office, Kathmandu, rescued 11 Indian citizens from captivity near Ratopul, Kathmandu. Eight individuals who held them captive are in custody, having brought the victims to Kathmandu, falsely promising easy access to the US via Nepal.

These incidents highlight a recent surge in crimes committed by foreign nationals in Nepal. The lenient arrival visa policy has attracted foreign criminals, who engage in human trafficking, drug smuggling, murder, theft, and fraud. 

According to the records of Nepal Police Headquarters, in the last 3.5 years, 480 foreign nationals have been involved in crimes in Nepal. From fiscal year 2077/78 BS to the present fiscal year 2080/81 BS. Among them, the majority are Indian nationals (192), followed by Chinese (84), and Bangladeshi (32) nationals. 

Gokarna Khanal, information officer at the Department of Prison Management, says there are 1,384 foreign nationals in prisons across the country. Of them, 1,204 are Indian nationals, 24 are Chinese nationals, three are Bangladeshi nationals, and 12 are Pakistani nationals. There are also eight Thais, three Filipinos, 13 South Africans, 12 Sudanese, and two American nationals.

Former Inspector General Thakur Gyawali says Nepal—where visa processes are extremely easy, and visas can even be obtained at the airport—is becoming a safe space for international criminals. Gyawali argues that besides easy arrival visa policy, Nepal’s security system itself is weak. He says due to legal loopholes, crimes committed by foreign nationals go unpunished.

The lack of robust monitoring and cooperation between agencies compounds the problem. Gyawali says the government’s data is not fully digitized online. Data related to criminal activities is shared with Nepal Police. However, economic data is shared with other entities, and data related to foreign arrivals is managed by another agency. 

“This lack of cooperation makes it difficult to monitor the activities of foreigners who enter Nepal,” Gyawai says. “We don’t have complete records of foreigners coming to Nepal. No agency is monitoring their activities. Where are they staying? How do they manage financially? Where do they get cash from?” 

If technology is updated and upgraded, Gyawali believes not only foreigners but also Nepali individuals can be deterred from committing crimes. 

The trend of foreigners getting involved in crimes is not new in Nepal, says Bhim Prasad Dhakal, spokesperson for Nepal Police. But he does not agree that Nepal’s law enforcement agencies are weak or ineffective.

“Compared to other countries, Nepal’s security is strong. No matter who or how one commits crimes, they can’t escape the police,” he says. “Also, it is not right to say that professional criminals come to Nepal and commit crimes.”

Security expert Prof. Indra Adhikari proposes enhanced scrutiny of tourist visas and digitization of foreign nationals’ activities. “A balance between tourism promotion and security measures is essential to curb criminal activities,” he says.

Adhikari is against vilifying the security agencies for increased crime rates. In comparison to the past, he mentions that the occurrence of serious crimes has decreased, indicating that the security agencies have become modern, efficient, robust, and trustworthy. 

“Criminals are always a step ahead of the law and security agencies. The number of crimes is increasing not only here but also in every country. Nepal Police is also vigilant and sensitive regarding the involvement of foreign nationals in crimes and criminal behavior. Impartial investigations are being conducted.”

On April 7, the Ministry of Home Affairs issued a directive to all 77 district administration offices across the country for increased surveillance of foreign nationals, emphasizing accountability for illegal activities. 

According to Narayan Prasad Bhattarai, spokesperson for the ministry, surveillance of foreign nationals entering all districts has been increased. 

“No one, whether domestic or foreign, is exempt from engaging in illegal activities while staying in Nepal. They will be brought under the legal framework,” he says.

Nepal, a country with diverse climates and geography, faces significant climate change impacts, from melting glaciers in the Himalayas to erratic lowland monsoon patterns. To mitigate these impacts, Nepal is investing in renewable energy sources like hydroelectric power, promoting reforestation, and encouraging sustainable agricultural practices to reduce carbon emissions. Nepal’s contribution is insignificant globally, but its commitment to reducing carbon emissions is promising. After the government’s commitment to reducing carbon emissions and exploring renewable energy sources, efforts toward hydropower development, harnessing of solar energy and other green energy sources have gained momentum. For a couple of years, as green hydrogen has been considered the most efficient and sustainable green energy, its potential in Nepal has become of interest to researchers, developers and the government. It represents a promising solution in the nation's transition toward a low-carbon economy. This innovative energy source, derived from renewable electricity, can significantly achieve climate goals while promoting economic growth and energy security. 

Green hydrogen is generated through electrolysis, wherein water is split into hydrogen and oxygen using electricity derived from renewable sources. This contrasts with gray hydrogen, produced using fossil fuels and resulting in significant carbon emissions. Since green hydrogen is created using renewable energy like hydroelectricity, it does not contribute to greenhouse gas emissions, making it a green alternative and becoming the choice of most countries that plan to achieve net zero emissions in the near future.

Nepal’s abundant hydroelectric resources position it as an ideal candidate for green hydrogen production. With over 40,000 megawatts (MW) of hydroelectric potential, the country can leverage this clean energy to generate hydrogen. Till now, Nepal has produced 2,800 MW of electricity from hydropower and is expected to produce 15,000 MW by 2030 and 30,000 MW by 2035. This opens the door to various applications, including the production of green hydrogen, which contributes to reducing Nepal’s carbon footprint while supporting its energy needs and economy.

Green hydrogen can serve as energy storage, capturing surplus electricity during high hydropower generation. This stored energy can then be used during periods of low water flow or peak demand, enhancing grid stability and reliability. As most of Nepal’s hydropower plants are runoff river types, significant energy is expected to be surplus during the monsoon season, where about 80 percent of precipitation occurs. Once more than 30,000 MW of hydroelectricity is generated, it is expected to have significant surplus energy during the monsoon season, which can be transformed into green hydrogen either used during the dry season or in any other form. It can power vehicles, emitting only water vapor as a byproduct. This can significantly reduce emissions in the transport sector and is one of the most significant contributors to air pollution and carbon emissions. Adopting green hydrogen technology can set a precedent for sustainable transport for a country like Nepal, where transportation infrastructure is rapidly developing. The industrial sector can also benefit from green hydrogen. It can replace natural gas and other fossil fuels in various industrial processes, reducing carbon emissions and supporting the country’s climate goal of reaching net zero carbon emissions by 2050. Nepal can benefit from reducing carbon emissions by participating in international carbon trading and offset programs, which allow developed countries to invest in carbon-reduction projects and provide funding and technology. This will promote economic growth, job creation and sustainable practices while enhancing environmental and public health outcomes.

Moreover, green hydrogen presents export opportunities for Nepal. If the country can produce excess green hydrogen, it can become a valuable resource for neighboring countries seeking clean energy solutions. The sale and export of green hydrogen can be easily expanded to several countries, in addition to India and Bangladesh, which are considered hydropower markets only. This could provide an economic boost and position Nepal as a regional leader in green hydrogen production and technology.

Despite the numerous benefits of green hydrogen, several challenges must be addressed for its widespread adoption in Nepal. Infrastructure development is one of the primary hurdles. Establishing hydrogen production, storage and distribution facilities requires significant investment and technical expertise. The cost of building this infrastructure can be high. The cost of green hydrogen will be high due to being more expensive to produce than gray hydrogen, mainly due to the high costs associated with renewable energy and electrolysis technology. However, these costs are expected to decrease as technology advances and economies of scale are achieved.

Government policies and regulations play a crucial role in promoting green hydrogen. Clear guidelines and incentives are needed to encourage private sector investment and drive the development of green hydrogen technologies. Without a supportive regulatory framework, it will be challenging to attract the investment required to build necessary infrastructure. Nepal can form international partnerships to access technology and funding for green hydrogen projects. Collaborating with countries and organizations experienced in hydrogen technology can provide valuable insights and resources to accelerate Nepal’s green hydrogen development. By focusing on advancing green hydrogen technology, Nepal can reduce production costs and improve efficiency. This can lead to broader adoption of green hydrogen across various sectors, fostering economic growth and job creation. An Indian investor is reported to have expressed interest in investing in Nepal’s green hydrogen production and promised to commit Rs 2trn to the project if the Nepal government establishes a supportive policy framework for green hydrogen. Also, other investors, especially from developed countries, might be interested in investing in green hydrogen for their responsibility of combating carbon emissions.

So, green hydrogen can potentially be a game-changer for Nepal as it seeks to combat climate change and transition to a low-carbon economy. By leveraging its abundant hydroelectric resources, Nepal can produce green hydrogen to meet its energy needs and reduce its carbon footprint. The applications of green hydrogen in energy storage, transportation and industrial processes are vast, offering a cleaner alternative to fossil fuels. Despite infrastructure development and cost challenges, Nepal can overcome these hurdles through strategic planning, international partnerships and a supportive regulatory framework. By focusing on innovation and embracing green hydrogen technology, Nepal can position itself as a leader in the region, making way for a rapid economic growth and contributing to global efforts to combat climate change.

The European Union (EU) said that it would help Nepal bring in investment.

EU Ambassador to Nepal Veronique Lorenzo informed that the 'EU-Nepal Trade Forum' is taking place in Kathmandu next week to bring European investment to Nepal.

In her address to a reception organized on Thursday to mark the 50th anniversary of the establishment of diplomatic relations between Nepal and the European Union, Ambassador Lorenzo said that the second meeting of the forum would be held in Kathmandu on May 15-16 to address Nepal's foreign investment deficit.

She said companies from EU countries would participate in the meeting to discuss the potential areas of investment in Nepal.

The Ambassador further said that Nepal was moving ahead with the goal of upgrading from the list of least developed countries in 2026 and it was necessary to create economic development and employment opportunities for the same.

During the drafting of the Constitution of Nepal, there was a comprehensive debate about what should be the substance and structure of the National Assembly of the Federal Parliament. That time, there were two schools of thought. One opinion was that the National Assembly should be the subsidiary or subordinate to the House of Representative (Lower House). But the second opinion was fundamentally different. The second opinion was that the National Assembly must be powerful, inclusive and of good quality. But numerically, the first opinion had the majority. So finally, the National Assembly was created in line with the first opinion. Hence our National Assembly was constitutionally made weak and subordinate to the Lower House. Same people have/had the control and influence in Lower House right after Constitution promulgation in two big parties in Nepal. So, they made the National Assembly deliberately weak legally too and made it subordinate to the Lower House while drafting the House Regulations.

When we look upon the content and structure of the Upper House in India, UK and other bi-cameral Houses, we see that the making and breaking of the government is the sole right and responsibility of the Lower House. Presentation of fiscal budget (Finance Bill) is also always done in the Lower House. These two rights, everywhere, are exclusively always reserved for the Lower House. But except these two, all other rights and responsibilities are almost equally divided between the two Houses. This world standard, though, does not comply or match in the context of Nepal. Our Federal Parliament was exclusively made with the main focus on the Lower House and it was deliberate and intentional.

In India, legislative, executive, judicial, electoral, amendment rights and even some special powers were constitutionally given to the Upper House. India is a model of how the Upper House is functioning in a parliamentary democratic country.  In the UK, the Upper House scrutinizes legislation, holds the government to account, and considers and reports upon public policy. Peers may also seek to introduce legislation or propose amendments to Bills.

Where are the faults and weaknesses?

 In Constitution:  Article 111 of the present Constitution creates discrimination and inequality between the two Houses with regard to passing the Bills.

Basically, sub-article (2), (4), (5) and (10) are discriminatory. Sub-article (2) only gives 15 days’ mandatory time to the National Assembly for discussion and sending it back to the Lower House with regard to the Finance Bill.

Sub-article (4) gives the discretionary right to the Lower House and says if the National Assembly does not send it back to the Lower House within 15 days, the Lower House can send this Bill to the Head of State for authentication.

Sub-article (5) gives mandatory two months to the National Assembly to send it back to the Lower House in case of all other normal Bills passed by the Lower House. But it is not vice-versa. Here, the Lower House has the monopoly. The Lower House does not have a time limit. It is an extremely discriminatory provision for the National Assembly.

Sub-article (10) also gives the upper hand to the Lower House. It says if any Bill is under consideration in any House and the Lower House has dissolved or ended its tenure, the Bill will be passive. These are the discriminatory provisions in the Constitution, which need immediate amendment.

Faults and discrimination in the regulation: Clause (6) of the Joint Regulation of the Federal Parliament says that the Speaker will preside over the meetings of the joint House. The Chairman of the National Assembly can only preside over the session if the Speaker is absent. This is not respectful and just to the National Assembly’s Chair. It has to be turn by turn.

Clause (25) of the Joint Regulation is also extremely discriminatory and unjust. It is about the Parliamentary Hearing Committee. There is the provision of a 15-member Committee. There are 12 members from the Lower House and only 3 members from the National Assembly. This is not fair, not representative, not inclusive and undermines the respect, dignity and image of the National Assembly. There has to be at least 5 members from the National Assembly.

 There are two Joint Committees in the Federal Parliament. One is the Parliamentary Hearing Committee and the other is the State’s Directive Principles, Policies and Liability Implementation, Supervision and Evaluation Committee. In eight years of Constitution implementation, members of the National Assembly never got a chance to become the Chair of either committee. This is also a discrimination and domination of the Lower House.

Sub-clause 33(4) of the same regulation is also not fair. It states about the number-ratio of other Joint Committees. The ratio is 1:5—one from the National Assembly but five from the Lower House. The point is that the ratio is unjust.

Sub-clause (44) of the same regulation is also unfair and dominating. It says that, whatever mentioned in the Joint Regulation, all activities take place accordingly. But whatever is not mentioned, will be done as per the provision of Lower House’s Regulation. This has established the supremacy of the Lower House over the National Assembly.

First and foremost, the mindset of political leadership, government and media should be changed in regard to the National Assembly. They do not pay much attention and importance to the National Assembly. The reason is that it has no role in making or breaking a government. They have only a little knowledge about the role and responsibilities of the Upper Houses of other countries. Parties are also sending cadres to the National Assembly, who are less qualified and less competent.

In conclusion, Nepal's National Assembly faces challenges rooted in its constitutional framework and parliamentary regulations, leading to a subordinate status compared to the Lower House. Discriminatory provisions in the Constitution and Joint Regulation undermine the role and representation of the National Assembly. To address these issues, there's a need for constitutional amendments to ensure equality between the two houses and a shift in mindset among political leaders, government, and media to recognize and respect the importance of the National Assembly in the country's governance. This would promote a more balanced and effective bicameral system in Nepal. Hence to make our National Assembly more powerful, inclusive, democratic, effective and of better quality and of world standards, we have to amend the Constitution, change the House Regulations as well as the mindset. 

The World Bank’s Board of Executive Directors today approved an $80m development policy credit for Nepal to strengthen the stability of the financial sector, diversify financial solutions, and increase access to financial services.

The third Finance for Growth Development Policy Credit aims to improve the functioning of the financial sector to support private sector-led growth. The operation will strengthen the supervision of the banking and insurance sectors in Nepal and foster financial product innovations in capital, insurance, and disaster risk markets. The operation will also increase financial inclusion through digitalization, enhanced credit infrastructure and improved financial literacy, with a focus on women entrepreneurs.

“This project supports Nepal’s green, resilient, and inclusive development and will help create an enabling environment for private investment to contribute to Nepal’s economic growth, particularly benefiting the poor and vulnerable,” said Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka. 

The operation also supports Nepal’s climate agenda by, for example, enhancing supervision of climate risks by requiring disclosures of climate-related risks and impacts of the banking sector portfolio; introducing risk-informed pricing for insurance products, including climate risks; establishing a framework for the issuance of green bonds; and integrating climate-related mitigation and adaptation commitments into credit guarantee products.

“This operation supports the government’s transformative financial sector reform agenda to promote private sector-led growth. The reforms in banking, insurance, and capital markets are instrumental for the sector’s resilience and the critical role it plays to enable private capital mobilization,” stated Tatsiana Kliatskova, World Bank task team leader for the project.

A research recently published by Christopher K Colley for the Stimson Center, an American think tank, nudged me to contemplate doing something I have never done before: Write a piece on foreign policy centered on Nepal from the perspective of Beijing. 

The paper, The Emerging Great Game Chinese, Indian and American Engagement in South Asia, is interesting, though not much in terms of its quite narrow and limited recommendations on how the USA can better counter the existing regional dynamics over the region. 

Instead, it is of great value for its fairly balanced analysis of what China, India and the USA have been doing (or not doing) in order to assert their positions in Kathmandu and Dhaka. 

Colley, an assistant professor of International Security Studies at the United States Air War College, highlights how ably China has been capable of outpowering its two big rivals in Nepal.

At the same time, the author, quite correctly, underscores that it has not been entirely all smooth sailing for Beijing. 

China has been overtly perceived to favor the leftist parties, which recently formed a new coalition, a tactic that can often backfire.

Indeed, the political instability in Kathmandu and the overall volatility of national politics is at least partially induced by the same game that Beijing learned so ably from other foreign powers jockeying for influence in Nepal. 

And it is a sort of chain reaction: As China steps up its game, more push backs and initiatives are put in place by its rivals to offset its increasingly more vocal foreign policy in Nepal. 

But connectivity and infrastructure are the elements that have been so central to Beijing’s approach to both Nepal and Bangladesh (and by extension to the entire world) and that have been distinguishing it from other big players. 

We need to give credit to Beijing that the Belt and Road Initiative is certainly very ambitious, perhaps even too much. 

Symbolically speaking, the BRI has been extremely important because it offered a clear vision of a future based on connectivity and with it comes a very clear and eye-catching narrative. 

No matter the confusion attached to the BRI, what really counts is that the Chinese were able to portray it as a game-changer initiative that is still unmatched by other geopolitical rivals. 

At the same time, though, concrete results and benefits on this front, as Colley explains, are mostly still to be seen on the ground in both nations. 

In this regard, it is still remarkable that Kathmandu and Beijing have not signed the implementation framework of the BRI as yet.  

India has been trying with its Look East Policy but, beyond the fact that it has never been focused on Nepal, the initiative is more like a strategy rather than a concrete, tangible initiative like the BRI.

The EU Global Gateway Initiative not only was designed very lately and it is still in its infancy, it’s still very far from being relevant and certainly did not make a mark in Nepal 

The USA does not have any infrastructure programs in the region. Unless we consider the highly complex and possibly impractical India-Middle East-Europe-Economic Corridor (IMEC) signed last year during the India G20, it is a joint venture with the European Union and seven other countries. 

Considering the unrivaled level of connectivity projects China aims to build in Nepal, Beijing should do a much better job in terms of outreach. 

Students, civil society and think tanks in Nepal should be engaged to better explain not only the BRI but also the more recently launched Global Civilization Initiative that still remains a mystery for many observers. 

This public outreach will probably be met with similar attempts by the USA and India while I am not entirely confident that the EU can be up to playing this game. 

China could also get out of its comfort zone and explain its human rights approach.

It knows, in advance, that the primacy of economic rights, a cornerstone of China’s official policies, can be relatively well received here but with some caveats. 

On the one hand, the Chinese model of top-down governance centered on effectiveness of policies and quick delivery of results can easily find admirers in Nepal, a country plagued by ineffective governance. 

On the other hand, in a nation that fought tooth and tooth for its freedoms in its decades-long quest for democracy, not once but multiple times, the same argument of the primacy of economic rights over political and civil liberties won’t go very far nor persuade the majority. 

Even a much more proactive PR and public engagement with the citizenry of the country won’t be enough. 

Such activities should also be matched by what really matters: A change in substance in China’s overall approach to Nepal and by extension, in the way it traditionally deals with developing nations around the world. 

It is now crystal clear that the Nepali side has been quite skillful at pushing back in terms of terms and conditions that Beijing has been offering for the BRI projects.

A country like Nepal, often portrayed as a weak nation, has been doing a masterful job at asserting its own strategic interest in its relationships with China.

So, if China really wants a breakthrough with Kathmandu, it has to show a much higher level of flexibility on how the BRI can be rolled out. 

It needs to accept the key terms, quite reasonable if you think about it, that Nepal is demanding: Grants and very nominal interest rates on the loans that it needs to take. 

Beijing should be much more effective and persuasive at explaining how it can really be transformative for Nepal to have a direct railways connection with its southern borders.  

Considering the staggering sums involved and the sheer complexity of the undertaking, it is obvious that Kathmandu does not want to incur huge debts.

Could Nepal offer China a new template on how to deal with the world, a much less rigid one and more attuned to the needs of the recipient nations? 

The Dragon Boat race on the occasion of the Chinese New Year was a big boost for the image of China in the country.

Yet it is not nearly enough to dispel some of the concerns that many harbor toward Beijing. 

It would not be surprising if an increasing number of people in Nepal start showing some annoyance toward China using the same heavy-handed approach that New Delhi has been, for so long, accused of. 

For sure, Nepal does not need neither big brothers nor big sisters. 

It needs reliable partners that, while overtly and covertly pursuing their strategic interests, also allow Nepal to play the same game by maximizing its own national priorities.

This means to be okay with the fact that Kathmandu might also and, very respectfully, say “no” to them as they do not align with its core interests . 

Accepting this new reality means that Nepal is growing and moving steadfastly toward becoming a developed nation, a country that is not afraid of exerting its own sovereign interests. 

It will also imply that its core partners have been effective at fulfilling what should be their primary mission in Nepal: Helping the nation to stand more confidently and more ambitiously on its own feet. 

The author writes about politics, human rights and development in Nepal and the Asia-Pacific