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By all accounts, the country is not on the right path. Nepal is facing a multitude of challenges that require immediate and concerted efforts to address. From agriculture and corruption to climate change and political instability, the issues are deeply interconnected. Without urgent action, the country risks further decline, with long-term consequences for its economy, society, and democracy. To support my argument, I have identified the 10 major problems Nepal is facing today.

Agriculture

I do not want to rely on government statistics, but based on my visits to Karnali, Sudurpashchim and areas surrounding the Kathmandu valley, I can say that Nepal’s agricultural sector is witnessing an alarming decline, with decreasing productivity. On one hand, there is a lack of youth willing to work in agriculture; on the other, a small group of local politicians and government officials are hijacking government subsidies, sidelining genuine farmers. One must be an active member of a political party to receive fertilizer and seed subsidies. Additionally, some people are forging fake agricultural documents to siphon funds that never reach the farmers. Market access for local farmers remains a major issue. Fertile agricultural lands are dangerously becoming barren, and their visible impact will be evident within the next 10 years.

Corruption

For a long time, everyone has been saying that corruption is everywhere, so this issue may seem redundant. However, believe me, it has reached an alarming level, especially at the local level. Corruption has severely compromised the quality of infrastructure projects. There is a dangerous nexus between politicians, government officials and contractors. For instance, I have personally witnessed cases where less than 30 percent of the allocated budget is actually spent on infrastructure projects. Corruption exists even in small health posts—people do not receive the free government-provided medicines because they are diverted to private pharmacies for profit. Corruption has permeated every level of budget allocation and project implementation.

Economy

Government indicators may suggest a gradual economic recovery, as it is also a necessity for the government to manipulate economic data to show progress. For example, the current government has claimed improvements compared to the previous administration. However, the overall sentiment in society clearly indicates that the economy is struggling. Business owners are under severe stress. Visit any small shop, and you will hear about the difficulties they face. People are hesitant to start new businesses due to high loan risks. Even top businesspeople are gradually losing confidence in the national economy. Whether you talk to a small tea shop owner or a leading business figure, optimism is hard to find.

Climate change

Again, this may not sound like a new issue because everyone is talking about it, but Nepal is facing a severe crisis due to climate change. Unfortunately, for our politicians, it is not a matter of urgency. But don’t just blame them—even US President Donald Trump called climate change a hoax. However, visit farms and talk to farmers, and you will feel its devastating effects firsthand. The September floods swept away agricultural lands around the Kathmandu valley. Over the past few months, prolonged droughts have seriously affected winter crops. In the coming years, both floods and droughts will continue to impact vital areas such as water availability, crop production, biodiversity and human settlements.

Misinformation and disinformation

This has emerged as one of the biggest risks to society. Social media platforms are filled with disinformation, and it is disheartening to see that people believe misinformation more readily than the facts. There is a low level of awareness about deepfake technology and how such content is created. This issue could lead to social unrest at any time. Politicians are aware of the spread of disinformation, yet there is no urgency to address it. Passing a few laws alone will not be enough; the government must launch a large-scale awareness campaign. Without it, disinformation could create security threats and other serious problems.

Youth migration

Every young person with a high school degree wants to go abroad. At college classrooms, I hear students discussing their plans to leave. In tea shops, I hear young people talking about how to gather funds to migrate. And in my home village in Kavre, I rarely see young people—most have already left. When I travel abroad, I find many Nepalis working and studying there. This trend does not need further explanation; its long-term economic impact will be severe, especially in the next decade.

Geopolitical tensions

Growing geopolitical tensions are gradually affecting Nepal. The Russia-Ukraine war has had economic and social repercussions here. Additionally, the escalating tensions between the US and China during Trump’s administration will not spare Nepal. Meanwhile, the growing influence of major global powers is increasing polarization within Nepali society. Our politicians are losing their ability to manage or leverage these global developments for the country’s benefit.

Political vacuum

Nepal currently has seven national political parties. Three major ones—Nepali Congress, CPN-UML, and CPN (Maoist Center)—united to promulgate the 2015 constitution. Superficially, it appears that these parties still dominate the political landscape. However, dissatisfaction is growing. More and more people are beginning to believe that traditional parties can no longer solve the country's problems, yet credible new political alternatives have not emerged. Even dedicated local-level cadres of major parties—except those who benefit directly—are considering changing their voting preferences in the next election. This has created a political vacuum at the local level. Which political force will fill this gap?

Pessimism

Nepalis are getting increasingly pessimistic about the country’s future. A majority believe conditions will worsen rather than improve. Many have lost hope that economic growth will create jobs and opportunities. This growing pessimism is contributing to rising mental health issues, which in turn are causing a surge in crimes.

Constitution

The 2015 constitution played a crucial role in maintaining peace, but it is now under threat. Anti-constitution forces are gaining momentum. Meanwhile, the commitment of political parties to the constitution is wavering. If the constitution and current system come under attack, the public is unlikely to rally to protect them because they feel the constitution has failed to improve their lives. If people do not safeguard the constitution, political instability could worsen at any time, potentially endangering democracy itself.

It can’t be denied that we rely all too much on imported goods, whether it be for clothes, perfumes, makeup items, bags, shoes, or toys. Many people ApEx spoke to confessed that they shopped when they traveled and that they don’t find what they need in the local markets in Nepal. They say the choice is between cheap Chinese products that don’t last more than a month and exorbitantly priced branded items that actually cost a fraction of the retail price on the brand’s website or at outlets in India and abroad.

But there are local businesses that actually sell good stuff. And their number is increasing by the day. We have rounded up some local brands and businesses that you can check out the next time you are shopping. We, at ApEx, believe this can help boost the local economy as well as entice entrepreneurs to come up with innovative ideas and products in the long run. But that doesn’t mean you have to compromise on the quality as these made in Nepal products have been made with care and caution and are some of the best you will ever come across.

Abir

Next time you want to shop for clothes, check out Abir near Pimbahal, Lalitpur. It’s a sustainable clothing brand. All the fabrics—bamboo, cotton, linen, hemp, and their blends—are made in Nepal. In winter, they used wool that was sourced from Nepal. Bini Bajracharya, co-owner of Abir, says they take pride in the fact that their clothes have minimal impact on the planet. The business is run by a small team of 10 to 12 people and they design clothes for both men and women. Recently, they have also started incorporating crochet in their designs, making their pieces unique and interesting. We spoke to some of their customers and they all agreed that Abir’s clothes are comfortable, don’t fade or shrink, and are designed to look great on all body types.

Maya Handicrafts Jewelry

This could be your go-to stop for dainty and stunning pieces of jewelry that you can wear every day. Maya Handicrafts has two physical outlets—one in Sanepa, Lalitpur and the other in Lazimpat, Kathmandu. But you can also browse through their collection on Instagram and order from there as well. However, we recommend visiting the stores to see their pieces up close. You will notice that they are simple and stylish and have been made really well. They have silver jewelry, gold-plated ones, and even some gold and diamond pieces. The prices are reasonable and they have quite a good collection. Their bangles and bracelets are especially made for daily wear. Maya Handicrafts is also a business with a conscience. They help charities and causes whenever they can. In the past, they donated two percent of their sales to Astitwa Nepal to help victims of acid and burn violence.

Nepal Knotcraft Center

If you want to buy home decor items and other little accessories like purses, pouches, and bags, look no further than Nepal Knotcraft Center. They have an outlet in Kupondole and their products are also available in Thames at Ekadeshma Collective. The company was founded in 1984 to create jobs for women and empower them. When it started out, it had three employees. Now, there are hundreds of women from all over Nepal working for the company. Most of the products are made from natural fibers and recycled wood. If you want placemats, rugs, and other home decor pieces like baskets, bowls, wall hanging etc, Nepal Knotcraft Center has a lovely selection of them all.

Jamarko

Founded by a sister duo and now run by their daughters, Jamarko is a paper recycling company that was started in 2001. They make various recycled paper and lotta paper products. They have notebooks, boxes, pencils, wrapping paper, frames, gift bags, and many other items. The designs are appealing and the products, despite being handmade, have a factory-finish to them. The company collects paper waste from various sources and recycles them to make beautiful products that can be used at home. Kritica Lacoul, executive director at Jamarko, says their short term goal is to minimize paper waste whereas their long term goal is to conserve our natural resources and reduce consumption. Buy from Jamarko for a guilt-free shopping indulgence. Another good thing is that their products aren’t pricey at all.

Gallery VS

You don’t have to buy expensive perfumes anymore. These handcrafted blends of essential oils smell great and are really long lasting. There are many variations available for both men and women and the fragrances range from mild to strong. The base of these roll-on perfumes are solvents and not alcohol and that ensures the smells stay for long. The proprietor says he wants to make good quality perfumes that are inexpensive but of good quality. The company also sells essential oils and diffusers as well as hand creams that aren’t greasy and are, again, long lasting. The company has a kiosk in Chhaya Center, Thamel as well as puts up stalls at the Saturday market at Labim Mall, Pulchowk, and the Le Sherpa Farmer’s Market on Saturday.

Nepal has raised the issue of new air routes with India yet again.

During a recent meeting with the visiting Ministry of External Affairs Additional Secretary, Munu Mahawar, in Kathmandu, Minister for Foreign Affairs Dr Azu Rana Deuba raised the issue of new air routes that Nepal has been demanding for a long time. 

Nepal has been in discussions with India for over a decade regarding new air entry routes. The government has been negotiating with the Indian government to utilize the airspace of Bhairahawa, Mahendranagar, Nepalgunj and Janakpur for air route access. However, Nepal has not yet secured air routes from these locations.

Gyanendra Bhul, the information officer at the Civil Aviation Authority of Nepal (CAAN), said that Nepal has presented all proposals to India regarding new routes. “Nepal has raised the issue of new air routes in all bilateral meetings - from the Prime Minister level to the ministerial level. While Nepal has presented its case, the Indian side has not yet reached a decision,” he added.

Due to India’s inability to provide a conclusive decision on new routes, the government’s plan to bring aircraft into Nepal using the airspace of Bhairahawa, Mahendranagar, Nepalgunj and Janakpur has been stalled.

Nepal had formally requested India to allow air access through Janakpur, Bhairahawa, Nepalgunj and Mahendranagar during Prime Minister Narendra Modi’s visit to Kathmandu in 2014. In May 2023, talks were held in New Delhi between officials from Nepal's Ministry of Culture, Tourism, and Civil Aviation, the Civil Aviation Authority of Nepal, and the Airports Authority of India, but no conclusion was reached.

According to CAAN, if India provides new air entry routes as requested by Nepal, it would save flight costs and time, and also resolve the issue of air traffic congestion. Currently, 90 percent of international flights enter Nepal through Simara, while flights from China enter through the Makalu region in Sankhuwasabha district and flights from Bhutan enter through Mechi. The air routes for exiting Nepal include Simara, Biratnagar, Janakpur, Mahendranagar and Bhairahawa.

Nepal has been facing several challenges such as air traffic congestion, disrupted flight schedules, and the need to hold aircraft in the air for extended periods due to the reliance on a single route. CAAN has been saying that if additional routes are made available, managing air traffic would become easier. If India agrees to at least allow the Bhairahawa and Nepalgunj routes, the distance for flights entering Nepal would be significantly reduced, CAAN officials say.

Currently, aircraft coming to Gautam Buddha International Airport in Bhairahawa from Gulf countries enter the Nepali airspace from Simara and fly westward to Bhairahawa as they are not allowed to enter the country from the west. Experts say new international airports in Bhairahawa and Pokhara will be unfeasible if aircraft are not allowed to enter from the west.

Mark Tolley is the regional director of inDrive Asia Pacific region with over 15 years of experience driving growth and operational excellence in the global QSR, cloud kitchen, and mobility industries. As the Regional Director for inDrive, he oversees several markets across [SEA+O], focusing on strategic market expansion, operational efficiency, and sustainable growth. Here’s an interview excerpt between Tolley and ApEx:

What factors have driven inDrive’s success in Nepal?

inDrive is always looking at markets where we can make a significant impact to local communities, we can bring affordable convenient mobility solutions and Nepal is one of those markets that we identified very early. There is a tangible transformed infrastructure where urbanization is outgoing. And Nepal again is a key market where we have seen right across 30 percent year in a year. The passengers  growth in the platform again is 30 percent plus and we have seen our drivers grow over 50 percent as well. And really what we put into that, I think the big thing we see in many countries and Nepal is our pay to pay model system and  where we are focused on fare transparent pricing for our customers. So, they can have the choice of value for money when you use our services. 

And on top of that we can have our low market leading commissions and when we put this together in a package when we enter a market, we see that there is a fairness and transparency that reflects with customers and drivers expectations. With this, the ecosystem has really allowed us to have more markets in Nepal and grow the market significantly. We only hope to continue growing up with this model of fairness without disrespecting our passengers.

inDrive emphasizes a people-centric and community-based approach. How does this strategy translate into the regional operations, and how do you ensure it resonates with local markets?

It’s always a case of how do we take a business at a lower price and I think we really work through this model allowing the environment through choice and control towards drivers and passengers.  So, what I mean by that is while our passengers are making their trip, they can choose the ride on the basis of ratings, varied costs and based upon the car that is comfortable and on top of that also the distance that they are. So, we have given these options to make their choice. In addition, the drivers can accept and decline too where I have also given power to the drivers and to be some of the entrepreneurs where they can choose when they work, how they work and which passengers do they want to take. And what this allows us to do, I am thinking of Nepalis in flexibility in freedom and underlining that this  you see great pricing which between the passenger and the driver is so unique and so aligned to people-centric mission and we see quite success.

Recently, we have been facing challenges related to some roaming cases. We have addressed this matter, and as part of our commitment to safety, inDrive maintains a strict zero-tolerance policy toward any harmful behavior or misconduct by users. The safety and satisfaction of our users, especially the safety and experience of women, is our top priority. We deeply regret and apologize for the incident experienced by our user.

At inDrive, we are a responsible company, and we are fully cooperating with the relevant authorities to ensure fairness and justice in this matter. We are dedicated to continually improving our services, as trust is a core value for us globally. Incidents like this do not reflect the values of inDrive or the quality of service we aim to provide. In fact, we are strengthening our measures to do better in the future. We want to ensure that every choice made on the inDrive platform is safe and secure. To that end, we offer several safety features to protect our users: Safety Button that provides quick access to contact support, the police, or ambulance services from the main screen. You can also easily access the phone numbers of their friends or family, which can be activated at any time, even during a ride. Share Your Ride feature allows passengers and drivers to share their ride details with friends or family, including real-time tracking. Rate Your Passenger/Driver where they can rate each other, providing transparency and helping others make informed decisions based on ratings. Lastly, a 24/7 Customer Support team is available around the clock to assist with any concerns. We are fully committed to enhancing safety on our platform and ensuring that every experience with inDrive is safe and secure.

Sustainability is a growing concern in the transportation industry. What steps is inDrive taking to incorporate sustainable practices in its operations?

Sustainability has been a focus of inDrive for a while and globally we see the shift among more sustainable options in a mobility industry. If we look at inDrive in Nepal, what are we doing to address that is, a few months ago we started the feature of comfort cars and that allows for comfortable ride among passengers in certain vehicle types. One important thing to know about the comfort cars is that most of them are electric vehicles and we have seen the response from the customers to want this type of ride. So, we are fully committed over the next year and beyond to  increase the demand for electric vehicles that we have.

What are the biggest challenges facing the ride-hailing industry in this region, and how is inDrive positioning itself to overcome them?

The biggest challenge we’ve observed in South and Southeast Asia is the growing demand for mobility options. In South Asia, the sector is expected to experience double-digit growth over the next 4-5 years. With this growth comes tighter regulations and constant changes, which require us to collaborate closely with local regulators. It’s essential to ensure that the regulations support businesses, drivers, and passengers alike. This is a challenge we see across Asia, and we’re addressing it in Nepal by fostering strong partnerships and adapting to regulatory environments. The second challenge stems from the increasing demand, which brings heightened competition. In many markets, we see more players entering the space, and sometimes we compete with ourselves. To stand out, we rely on our unique and straightforward model. By focusing on affordability and maintaining market-leading low commission rates, we’re able to enter and thrive in these markets. Our approach not only makes rides affordable but also supports drivers in maximizing their earnings. This innovative strategy allows us to remain resilient and adaptable as new challenges and competitors emerge.

How is the company leveraging innovation to enhance user experience and stay ahead in a competitive market?

Besides affordability, inDrive differentiates itself through our unique peer-to-peer pricing model, which promotes transparency and fairness, ensuring that both riders and drivers are satisfied with the mutually-agreed price.

Our peer-to-peer model is both innovative and highly suitable for entering this nascent market. This model of transparency and fairness is a significant advantage for us and reflects the innovation we aim to bring. When it comes to commissions for drivers, we are deeply focused on ensuring fairness and maximizing their earnings. By maintaining low commission rates, particularly in countries like Nepal, we enable drivers to earn more per order. This approach ensures that at the end of the month, they have more money in their accounts.

Additionally, we prioritize safety. We have a rigorous onboarding process and a robust verification system for drivers. Real-time tracking is another essential feature that enhances safety. These elements, combined with our continuous efforts to innovate, demonstrate our commitment to both safety and fairness.

What are inDrive’s primary goals for Nepal, and how do you see the brand evolving over the next five years?

Personally, I would say our focus is to continue expanding in the Kathmandu market while exploring new opportunities as they arise. Beyond that, we aim to ensure added insurance benefits for our drivers, providing them with greater security. We are also in the process of establishing a local office, which will serve as a valuable resource for customers and passengers who wish to engage with us directly. Additionally, we are actively working to grow our electric vehicle fleet within Nepal, which aligns with our commitment to sustainability and innovation. These three areas—expansion, driver support, and the adoption of EVs—are key priorities for us over the next five years

Can you share some impact/CSR projects by inDrive in Nepal?

Nepal is one of the cornerstones of our focus for 2025 and beyond. We have our invision program, which collaborates with communities worldwide. Recently, we partnered with the Nepal Centre of Disaster Management (NCDM) to officially unveil our first inDrive house for victims of floods and landslides. This marked the first of five houses in the region, and seeing the tangible impact of these collaborations was truly a proud moment. We have our YourPace program, where we actively engage with the community. For instance, we’ll be participating in the Kathmandu Marathon with a dedicated team encouraging people to run—I’ll personally be there as well. Furthermore, we’ve supported cultural initiatives, such as sponsoring several events, including the Alternative Film Awards.

Nepal faces the risk of being added to the Financial Action Task Force (FATF) ‘gray list’—an informal designation for countries with strategic deficiencies in combating money laundering and terrorist financing. The warning comes as the FATF Plenary and Working Group meetings, scheduled for Feb 17-21 in Paris, France, are set to review Nepal’s progress in addressing these issues.  

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari acknowledged the risk, stating that Nepal is currently in the listing phase after completing its mutual evaluation period. “Even if we are listed, we have laid a strong foundation to exit the grey list,” Adhikari said, during Anti-money Laundering Day celebrations in Kathmandu. 

Officials say the FATF, an intergovernmental body that sets global standards for anti-money laundering (AML) and counter-terrorist financing (CFT), has expressed concerns over Nepal’s slow progress in key areas. Although Nepal has made legislative reforms, international observers have criticized the delays in investigations, prosecutions and enforcement of AML/CFT measures.  

Nepal’s mutual evaluation process, which began in June 2022, identified several gaps in the country’s AML/CFT framework. A team from the Asia/Pacific Group on Money Laundering (APG), comprising experts from Australia, Bangladesh, Fiji, Malaysia, New Zealand, the Philippines, and Sri Lanka, had made 11 immediate recommendations for improvement. However, government officials admit that progress in implementing these reforms has been unsatisfactory.  

The government had prepared to amend over a dozen laws through an ordinance in Oct 2022. The proposed amendments targeted key legislation, including the Money Laundering Prevention Act, Cooperative Act, Tourism Act, Nepal Penal Code, and Foreign Investment and Technology Transfer Act. However, the President declined to issue the ordinance.  

It was only in February 2023 that Parliament passed the anti-money laundering bill, amending several laws to align with international standards. Despite these efforts, experts say challenges remain in addressing issues such as proxy ownership of assets, underreporting of property values and large cash transactions.  

Law Secretary at the Office of the Prime Minister and Council of Ministers, Phanindra Gautam, Prime Minister’s Office said that while Nepal has completed the third round of mutual evaluation, the results have not been entirely satisfactory. “The current context does not reflect effective implementation,” he said.  

Chief Secretary Ek Narayan Aryal acknowledged that Nepal has adequate laws, structures, and human resources to combat money laundering but stressed the lack of reporting, enforcement, and active implementation. “This has led to repeated questioning by international institutions,” he said.  

Deputy Prime Minister and Finance Minister Bishnu Paudel admitted that Nepal has not done enough to address money laundering risks. “Efforts have been made to avoid being pushed into a high-risk or monitored category, but we have not been as effective as required,” he said. Paudel emphasized the need for strict adherence to international commitments and the implementation of domestic programs.  

If Nepal is gray-listed, it could face significant economic repercussions, including reduced foreign investment, higher transaction costs, and reputational damage.

After the April 2015 earthquake in Nepal, India committed $250m in grant assistance for post-earthquake reconstruction in Nepal, the Embassy of India in Kathmandu said on Monday. “The grant was allocated in four different sectors—Housing ($100m), Education ($50m), Health ($50m) and Cultural Heritage ($50m). A JPMC (Joint Project Monitoring Committee) mechanism was set up in Aug 2017 to monitor the progress of these projects,” the statement added.

India and Nepal held the fifth meeting of the JPMC on post-earthquake reconstruction projects on Monday in Kathmandu. The Indian delegation was led by Munu Mahawar, Additional Secretary (North), Ministry of External Affairs, Government of India and the Nepalese delegation was led by Padma Kumar Mainalee, Joint Secretary, Ministry of Urban Development, Government of Nepal.

The meeting was also attended by several other representatives of the Governments of India and Nepal, consultants and other stakeholders engaged in implementation of the projects.

The meeting carried out a comprehensive review of the progress of the Government of India assisted post-earthquake reconstruction projects in housing, education, health and cultural heritage sectors in Nepal. It acknowledged the successful completion of the projects agreed under the housing sector in 2021 and the education sector in 2024.

According to the Embassy of India, Kathmandu, in health and cultural heritage sectors, both sides expressed satisfaction on the progress achieved and agreed to expedite the early completion of projects under these sectors.

Since the last JPMC meeting in Oct 2023, Government of India has handed over 26 projects in the education sector including Tribhuvan University Central Library in Kathmandu, 32 projects in the health sector and three projects in the cultural heritage sector, amounting to Rs 3.35bn.

In addition, 43 projects in the health sector and nine projects in the cultural heritage sector amounting to Rs 1.73bn have been completed during this period, as per the Embassy of India Kathmandu.

Both sides appreciated the positive socio-economic impact of the reconstruction projects, particularly in employment generation and extension of health and education facilities in remote areas.

AS (North) also visited the Gusthal Mahavihar reconstruction project, a cultural heritage site located in Guita Tole, Lalitpur Metropolitan City-8. During the visit, he reviewed the project’s progress and engaged with members of the user community.

Both sides agreed to hold the next meeting of the JPMC on a mutually convenient date.

The real estate sector in Nepal has undergone significant transformations over the past few decades, serving as a vital component of the nation’s economy. Despite its potential to drive growth, employment and investment, the sector has faced persistent challenges, including regulatory bottlenecks, valuation discrepancies and market saturation. Recent government initiatives, coupled with evolving demographic and economic trends, suggest a cautious revival, although policy and structural adjustments remain critical to unlocking its full potential.

Nepal’s real estate sector has been fraught with systemic challenges. Among the most prominent is the restrictive land ceiling provision, which has hampered the free transfer of land ownership. Developers managing large-scale projects—spanning 50 to 200 ropanis of land—often find themselves unable to sell properties due to these limitations. This has created a bottleneck, stalling the market and leading to financial distress for developers, who struggle to repay loans to financial institutions.

The problem is compounded by Nepal Rastra Bank’s (NRB) stringent policies, which have tightened real estate financing. Cooperative organizations, heavily invested in real estate using depositors’ funds, faced liquidity crises, leading to their collapse in some instances. These failures not only hurt the sector but also eroded public trust in financial institutions.

Demographic factors have also played a role. Many young Nepalis emigrate for education or employment, selling their properties before leaving. Simultaneously, those abroad often remit funds to their families, who purchase land or property, resulting in market saturation. This oversupply, coupled with weak demand, has further destabilized the sector.

One critical issue undermining Nepal’s real estate sector is the disparity between government valuation of land and its actual market price. Government valuations, often a fraction of market prices, enable opportunities for illicit fund laundering. For instance, land valued by the government at Rs 1m can fetch over Rs 10m in the market. Such discrepancies hinder transparent transactions and create inefficiencies in the market. Experts have suggested involving private sector professionals in valuation committees to ensure accuracy and curb malpractice.

In an attempt to address these longstanding challenges, the government recently introduced amendments to the Land Act, National Parks Act and Forest Act through an ordinance. These amendments include limited exemptions in real estate transactions, a move aimed at revitalizing the sector. However, critics argue that such provisions may be susceptible to policy misuse, raising concerns about potential corruption.

One contentious provision allows landless squatters to gain ownership of plots they have occupied for extended periods. While proponents argue this addresses social equity, detractors warn it could encourage encroachments. The ordinance has also been lauded for easing land ceiling restrictions, which the Nepal Real Estate and Housing Development Federation believes will stimulate sectoral growth.

After years of stagnation, Nepal’s real estate market is showing signs of recovery. In the first five months of the current fiscal year, banks and financial institutions disbursed NPR 20.34bn in real estate loans, representing an 8.62 percent year-on-year growth. This resurgence aligns with an increase in registered land deeds, which climbed from a pandemic-induced low of 12,000 to over 40,000 monthly transactions in 2023-24. The revival has been attributed to growing market confidence and increased business activity. Rise in transactions and loans indicates a positive trend. However, there is a need for more practical income assessment criteria and flexible loan limits to sustain momentum.

Real estate activity has seen uneven growth across Nepal. Districts such as Sunsari, Morang, Jhapa, Kailali and Dhanusha have emerged as transaction hubs, consistently recording over 1,000 monthly transactions. In contrast, regions like Sirdibas, Gorkha, have witnessed minimal activity. This regional disparity underscores the need for localized policy interventions to address unique challenges and opportunities.

Despite its struggles, Nepal’s real estate sector holds immense potential. Urbanization, population growth and the allure of modern lifestyles continue to drive demand for residential and commercial properties. Additionally, the tourism industry offers opportunities for real estate development in hotels, resorts and homestays.

The integration of digital platforms has further revolutionized the industry. Online marketplaces like Daleykaka.com have streamlined transactions, enhancing transparency and efficiency. Additionally, increasing interest from foreign investors and the Nepali diaspora presents an opportunity to attract new capital and expertise.

To fully harness the potential of Nepal’s real estate sector, a comprehensive and strategic approach is necessary. This includes implementing policy reforms that prioritize revising land ceiling regulations to foster large-scale development while maintaining equity in land distribution. The introduction of an Urban Development Act would serve as a significant milestone, facilitating systematic urban settlement and encouraging private-sector engagement in large-scale urban projects. Ensuring valuation accuracy is equally vital. By involving private professionals in land valuation committees, discrepancies between government and market valuations can be mitigated, fostering greater transparency and reducing the prevalence of illicit transactions.

Financial accessibility remains a cornerstone for driving market participation. Nepal Rastra Bank should consider revising its income assessment criteria and loan limits, thereby creating an environment where financing becomes more attainable for both buyers and developers, which in turn would stimulate market activity. Moreover, given Nepal’s susceptibility to natural disasters, it is imperative to adopt disaster-resilient construction practices. Sustainable and resilient building methods not only ensure long-term structural stability but also contribute to safeguarding investments in the sector.

Lastly, the simplification of legal and administrative processes is crucial. Streamlined land administration procedures, coupled with the removal of bottlenecks in land revenue regulations, would significantly enhance governance efficiency, making the real estate sector more dynamic and investor-friendly.

Nepal’s real estate sector stands at a crossroads. While recent policy interventions and market trends offer hope, sustained growth requires coordinated efforts across stakeholders. By addressing structural and regulatory challenges, enhancing transparency and leveraging technological advancements, Nepal can unlock the true potential of its real estate sector. This transformation would not only bolster economic growth but also fulfill the aspirations of millions seeking stability and prosperity through property ownership. With the right blend of policy, innovation and stakeholder collaboration, Nepal’s real estate sector can evolve into a cornerstone of its economic development, fostering sustainable growth for years to come.

Neo-fascism, a modern revival of authoritarian ideologies characterized by nationalism, anti-liberalism, and the erosion of democratic norms, is increasingly shaping global politics. Once associated with the authoritarian regimes of the early 20th century, such as Benito Mussolini’s Italy, neo-fascism is now emerging in various parts of the world, including Nepal. Despite its democratic framework, Nepal is witnessing the rise of neo-fascist elements within its political parties and leaders, threatening core democratic principles and minority rights.

While South Asia has had limited direct exposure to European fascism, authoritarianism, nationalism, and militarism have manifested regionally in troubling ways. Countries like India, Pakistan, Sri Lanka, and Nepal exhibit patterns resembling neo-fascism, challenging democratic norms and inclusivity. In Nepal, both old and emerging political parties and their leaders are adopting tactics and ideologies reminiscent of fascism, undermining the nation's democratic ethos.

Nepal, with its fragile democracy and history of political instability, provides fertile ground for the rise of neo-fascist tendencies. Political parties—both traditional and new—have displayed authoritarian traits, employed exclusive nationalist rhetoric, and sought to centralize power at the expense of democratic institutions and minority rights.

A remnant of the bygone royal regime, Rastriya Prajatantra Party (RPP) embodies a yearning for monarchical centralization. The RPP often calls for the restoration of a Hindu state, promoting exclusionary nationalism that marginalizes Nepal’s religious and cultural diversity. Its leaders glorify the monarchy as a symbol of unity and stability, reminiscent of fascist ideals of a strong, centralized authority. The party’s resistance to federalism and advocacy for a unitary state align with neo-fascist tendencies of eroding regional autonomy.

The Communist Party of Nepal (Maoist Centre), under the leadership of Pushpa Kamal Dahal (Prachanda), has also exhibited authoritarian characteristics. During the decade-long insurgency, the Maoists relied on militarization and the glorification of Prachanda’s leadership, fostering a cult of personality that echoes Mussolini’s tactics. Even in the post-insurgency period, the party’s hierarchical structure and intolerance for dissent within its ranks reveal authoritarian tendencies. The party's leaders have used populist rhetoric to consolidate power while sidelining opposition voices, undermining democratic discourse.

In recent years, concerns have grown over the influence of neo-fascism within Madhes-based political parties in Nepal. These parties, which represent the Madhesi community, have historically advocated for marginalized groups’ rights and greater autonomy. However, some factions are increasingly adopting ultra- regionalist, authoritarian ideologies, characterized by aggressive regionalism, ethnic superiority, and exclusionary politics. This shift threatens the inclusive federalism enshrined in Nepal's constitution, raising fears about undermining democratic values and political pluralism. As these parties navigate their identity and power, it is crucial for Nepal to ensure that democratic principles and federalism are upheld amidst rising nationalist pressures.

Emerging political figures like Rabi Lamichhane and his Rastriya Swatantra Party (RSP) have capitalized on populist and nationalist sentiments. Lamichhane’s rhetoric often targets foreign influence, invoking fears of national sovereignty being undermined. While this approach garners public support, it risks fostering xenophobia and scapegoating minorities, particularly the Madhesi and indigenous communities. This exclusive nationalism, combined with Lamichhane’s attempts to position himself as a strong leader, reflects neo-fascist tendencies.

Even mainstream parties like the Nepali Congress (NC) and the Communist Party of Nepal (Unified Marxist-Leninist) are not exempt from neo-fascist tendencies. Leaders like KP Sharma Oli of the UML have frequently used divisive nationalism to strengthen their hold on power. During his multiple terms as prime minister, Oli oversaw a growing centralization of authority, efforts to undermine parliamentary processes, and the sidelining of provincial governments. His frequent use of national security threats to justify his policies echoes neo-fascist tactics of consolidating power through fear and division.

Neo-fascism in Nepal often manifests in exclusive nationalist rhetoric that sidelines ethnic, linguistic, and religious minorities. Political parties frame federalism and decentralization as threats to national unity, undermining the representation and autonomy of Madhesi, Dalit, and indigenous communities. The opposition to inclusive policies fosters a narrow vision of national identity, eroding Nepal’s rich multicultural heritage.

The suppression of dissent is another hallmark of fascism evident in Nepal. Successive governments have restricted media freedom, targeted journalists and activists, and leveraged cyber laws to curb online expression. These actions echo tactics used by neo-fascist regimes globally to silence opposition and control public discourse. The increased surveillance of civil society groups and restrictions on peaceful protests further signal a drift toward authoritarianism.

Nepal’s political leaders frequently invoke national security concerns to justify expanding military and police powers. For example, the government’s decision to militarize border areas under the pretext of protecting sovereignty has been criticized as overreach. Similarly, the increased reliance on security forces to manage civil unrest fosters a climate of fear and normalizes authoritarian measures.

Social media has become a powerful tool for spreading nationalist rhetoric and neo-fascist ideologies in Nepal. The widespread use and abuse of platforms have fueled the rise of figures like Kathmandu Mayor Balendra Saha and RSP leader Lamichhane. Political leaders and parties leverage platforms such as Facebook and Twitter to amplify ultra-nationalist messages, frequently targeting minorities and critics. The swift spread of misinformation and polarizing content divides society, providing fertile ground for neo-fascist ideas to flourish.

The rise of neo-fascism in Nepal threatens its democratic framework, inclusivity, and civil liberties. Continued erosion of democratic institutions, suppression of dissent, and centralization of power could undermine Nepal’s progress toward becoming a stable, pluralistic society.

Moreover, Nepal’s geopolitical position between India and China makes rising nationalism particularly risky. Anti-foreign rhetoric could strain diplomatic relations, disrupt trade, and hinder regional cooperation.

As Bertrand Russell warned, fascism thrives in times of unrest, using propaganda and nationalism to scapegoat minorities and consolidate power. Nepal’s path forward requires vigilance, an informed citizenry, and a robust civil society. Political parties must commit to democratic norms, promote inclusivity, and resist the temptation to exploit nationalist sentiments for short-term gains.

Strengthening democratic institutions, ensuring media freedom, and fostering interethnic dialogue are critical to countering neo-fascist tendencies. Nepal must safeguard its democratic achievements and uphold the values of pluralism, equity, and justice for all its people.

Nepali authorities and the International Monetary Fund (IMF) team have reached a staff-level agreement for the fifth review of Nepal’s economic reform program supported by the IMF’s Extended Credit Facility (ECF) arrangement.

The agreement is subject to approval by the IMF Executive Board which will give Nepal access to about $40.6 million in financing.  The agreement is subject to approval by the IMF’s Executive Board. Upon completion of the Executive Board Review, Nepal would have access to SDR 31.4m (about $40.6m), bringing the total IMF financial support disbursed under the ECF to SDR 219.7m (about $283.9m), from a total of SDR 282.42m, according to the statement.

The economic recovery that began in the fiscal year 2023-24 was disrupted by the severe floods in September 2024, which caused widespread damage across critical sectors and further dampened the still-weak domestic demand. Inflation accelerated to 6.1 percent in Dec 2024 due to a spike in food prices following the floods, the statement says.

Nepal’s external position continued to strengthen, bolstered by robust remittances and subdued imports. Accordingly, revenue growth remained modest. Amid the ongoing correction from the post-pandemic credit boom, vulnerabilities in the financial sector are increasing, with the banking sector's non-performing loans reaching 4.4 percent in October 2024, and the financial health of the savings and credit cooperatives (SACCOs) sector deteriorating.

“Growth is expected to gather pace, exceeding 4 percent in 2024-25, supported by stronger public capital expenditure, including on post-flood recovery and reconstruction efforts.

Relatedly, imports are expected to rebound in the second half of the year. Flood-driven food inflation is expected to ease as transport networks are repaired and agricultural output recovers improving the food supply. However, the outlook is subject to important downside risks, including under-execution of growth-enhancing capital projects, an increase in financial sector vulnerabilities, and potential disruption to policy continuity and reform implementation.

Against this background, policies and reforms envisaged under the ECF-supported program remain well-placed to help preserve macroeconomic stability and strengthen Nepal’s policy framework. Growth-friendly fiscal consolidation—by accelerating capital expenditure coupled with stronger revenue mobilization—is critical to boost sustainable and inclusive economic growth.

Timely execution of spending will further support this effort. Monetary policy should continue to follow a data-driven approach to maintain price and external stability while supporting growth. With amendments to the AML Law enacted, the next steps would be to focus on the effectiveness and application of the new legal framework. Amendments of the NRB Act are key to strengthening the central bank’s independence and governance.

As in his first tenure (2017–2021), US President Donald Trump has signaled his intention to adopt an aggressive Indo-Pacific Strategy (IPS) to counter China's growing influence in the region. While his administration’s exact approach remains to be seen, Trump’s actions thus far suggest a more unilateral and hardline strategy compared to his predecessor, Joe Biden, who focused on fostering partnerships and multilateral cooperation in the region.

A key question is whether Trump will continue Biden’s approach of strengthening ties with allies and regional partners or pivot to a more isolated stance, prioritizing direct US action. Another point of uncertainty is whether his administration will focus on a military-centric strategy or emphasize economic engagement with countries in the Indo-Pacific. But one thing appears certain: the Trump administration's IPS strategy is likely to adopt a more confrontational tone. This approach could aggravate not only Beijing but also some US partners in the region.

Shortly after taking office, US Secretary of State Marco Rubio held a high-profile meeting with foreign ministers from Australia, India and Japan—the member nations of the Quadrilateral Security Dialogue or "Quad." A statement from the US State Department emphasized the group's shared commitment to a “"Free and Open Indo-Pacific,” where democratic values, rule of law, sovereignty, and territorial integrity are upheld.

The statement underscored the Quad's collective stance against unilateral actions that attempt to alter the regional status quo through coercion or force. “Our four nations maintain our conviction that international law, economic opportunity, peace, stability, and security—especially in the maritime domain—are essential for the prosperity of the Indo-Pacific region," the statement declared. It also highlighted commitments to strengthening regional maritime, economic, and technological security in response to rising threats, while promoting reliable and resilient supply chains. India, as the next host of the Quad Leaders' Summit, is set to play a pivotal role in steering the group's agenda.

China has criticized the Quad, labeling it as an attempt to encircle Beijing and undermine its strategic interests. China's opposition to the Quad's initiatives could escalate tensions in the region, especially as the Trump administration doubles down on its Indo-Pacific focus.

The Indo-Pacific Strategy introduced by the Biden administration in 2022 emphasized collaboration with India and other regional groupings to promote stability in South Asia. During Biden's tenure, India-US relations saw a significant deepening of their strategic partnership. However, Trump's return to power could strain this partnership, particularly due to his hardline stance on tariffs and trade. Trump has already suggested the possibility of imposing a 100 percent tariff on imports from BRICS nations, including India—a move that could severely impact the trade relationship between Washington and New Delhi.

Trump's approach to China is also likely to exacerbate existing tensions. Having already initiated a trade war with Beijing during his first term, Trump has signaled his intent to escalate economic pressure on China. In a recent press conference, he hinted at imposing a 10 percent across-the-board tariff on all Chinese goods as early as Feb 1. Such a move would likely lead to further deterioration in US-China relations, with significant ramifications for the global economy.

Beyond trade, Trump’s previous decisions—such as withdrawing from the Paris Climate Accord and the World Health Organization—have raised concerns about the US’ role in addressing global challenges. These moves could undermine US credibility and influence in the Indo-Pacific, where collaborative efforts on climate change, public health, and sustainable development are crucial.

Despite these challenges, Trump is expected to continue working with India to counter China's influence in the region. Reviving talks with North Korea, a hallmark of his first term, may also resurface as a diplomatic priority. However, Trump’s stance on Taiwan, a critical flashpoint in US-China relations, remains uncertain.

Nepal, a strategically located country in South Asia, is unlikely to remain unaffected by these geopolitical shifts. Nepal’s relations with both India and China are integral to its foreign policy, and any significant changes in US strategy toward these powers will have a ripple effect on Kathmandu's diplomatic calculus. For instance, further deterioration in US-China relations could constrain Nepal's ability to navigate its relationships with both nations.

Additionally, Trump's policies on global issues such as climate change, health and minority rights are likely to impact Nepal directly. The country, which is already grappling with the challenges of climate change, relies on international cooperation and funding to implement mitigation and adaptation strategies. A more isolationist US approach could hinder Nepal’s efforts in these areas. Changes in US funding or support for health services and rights related to sexual and gender minorities could also have social and economic repercussions.

As Trump’s administration takes shape, it will be crucial to monitor how his Indo-Pacific Strategy evolves and its implications for the region and beyond.

Nepal, a landlocked country situated between India and China, faces unique challenges due to its geographical location and rugged topography. The nation’s landscape is characterized by three distinct regions: the high Himalayan Mountains in the north, the mid-hill regions and the southern plains (Tarai). These diverse terrains pose significant logistical challenges for domestic distribution and access to international markets. With over 80 percent of its population residing in rural areas and dependent on agriculture, Nepal’s economic growth hinges on improving infrastructure to facilitate connectivity, trade and development. 

Despite these challenges, Nepal’s strategic position as a bridge between two of the world’s largest economies offers immense potential for growth. To harness this potential, public-private partnerships (PPPs) are critical in addressing infrastructure gaps and enhancing the logistics sector. 

Below are actionable policy guidelines for establishing an effective PPP framework:

Institutional framework 

A dedicated PPP unit: The government must set up a dedicated PPP unit or agency to oversee project implementation, provide technical support and standardize logistical practices for logistics service providers. This unit will coordinate provincial and national transport initiatives to ensure harmonization and efficiency. 

Legal and regulatory environment: Introducing PPP-specific legislation is essential to define clear frameworks for contract enforcement, risk-sharing and dispute resolution. These laws will provide confidence to private investors and international donors. 

Decentralization: An empowering provincial government is key to managing localized PPP projects. Each province should focus on developing infrastructure tailored to its production centers, whether for manufacturing or agriculture. This includes establishing and investing in transport hubs, warehouses, and equipment suited to the geographical terrain, such as all-weather roads and specialized vehicles for mountain regions.

Project selection and prioritization 

Feasibility studies: Conducting rigorous feasibility studies is vital to prioritize infrastructure projects such as roads, railways, airports and multimodal connectivity. The studies should consider environmental, technical and financial aspects to ensure sustainability. Key projects should include centralized logistics hubs in major cities like Kathmandu, Birgunj, Biratnagar, Kakarvitta and Bhairahawa, with efficient links to border points for customs and warehousing. 

Alignment with national goals: PPP projects should align with national plans, such as Nepal’s five-year plans, focusing on reducing isolation of remote areas, improving trade and promoting economic growth through efficient distribution of goods and services.

Risk allocation and management 

Risk-sharing mechanisms: Clear guidelines for risk-sharing between public and private sectors are crucial, particularly given Nepal’s susceptibility to natural disasters like landslides, floods and earthquakes. 

Utilization of resources: The government should leverage public land for long-term leases and offer financial guarantees for projects that may not be immediately profitable but have high social and economic value. Blended financing models combining public, private and donor investments can provide the necessary funding and technical assistance. 

Capacity-building: Investing in capacity-building is crucial for both government officials and local communities. Train government personnel in PPP project design, negotiation and management. Provide employment and training opportunities to local populations to ensure inclusivity and skill development. Engage communities, NGOs, and private sector stakeholders in decision-making to foster trust and collaboration.

Technology and innovation 

Renewable energy solutions: Focus on small-scale hydro, solar and wind energy projects to power remote areas and reduce dependency on non-renewable resources. 

ICT and digital connectivity: Develop digital solutions to bridge connectivity gaps, such as internet access and e-commerce platforms for rural communities. 

Resilient engineering: Adopt innovative engineering solutions such as modular bridge systems and climate-resilient road designs to overcome geographic and climatic challenges.

Environmental and social sustainability

Environmental safeguards: Ensure regular environmental impact assessments (EIAs) to mitigate risks to the ecosystem during infrastructure development. 

Community benefits: Design projects to deliver tangible benefits, such as improved market access, healthcare and education for remote populations. 

Green logistics: Promote eco-friendly technologies like electric trucks, solar-powered warehouses and sustainable building materials.

Digital platforms

Develop a central digital platform for data collection, goods tracking and information sharing among stakeholders. Enable real-time updates on traffic, warehouse capacities and customs clearance to improve efficiency. Introduce e-payment systems for tolls, customs and other fees to reduce inefficiencies.

Cross-border trade facilitation

Given Nepal’s dependency on its transit neighbors, harmonizing customs procedures with India and China is critical. Collaborate on reducing delays at border points, such as Birgunj-Raxaul in the south and the Rasuwagadhi-Kerung crossing in the north.

Monitoring and evaluation

Transparent and robust monitoring mechanisms are essential for PPP success. Define key performance indicators such as reduced transport costs, increased trade volumes and time savings. Engage independent bodies for audits and evaluations. Ensure transparency through public disclosure of contracts, progress reports and financial data.

Conclusion

Nepal’s landlocked status and challenging terrain may appear to hinder its development prospects, but they also offer opportunities for innovation and collaboration. Developing a well-structured PPP framework can bridge infrastructure gaps, enhance logistics and connect Nepal’s remote regions with domestic and international markets. 

By implementing these policy guidelines, Nepal can unlock its potential as a trade hub, fostering sustainable economic growth and improving the quality of life for its citizens.

Nepal is famous not only as the Himalayan Shangri-La but also as a country with distinct tangible and intangible heritages. Within a relatively small terrain, Nepali communities have preserved these heritages for centuries despite adversities. 

For example, the Damai community has been preserving its musical heritage for ages—without getting the respect it deserves.

Historians believe that the word ‘Damai’ comes from the musical instrument called ‘Damaha’ (a large drum). This musical instrument is made using refined leather and molded by a copper or brass strip into an oval shape. Music is produced through this instrument by beating on its either side with a pair of sticks called gaja. The primary role of a Damai is to play Damaha and other musical instruments like the Sanai for the society on social occasions like weddings.  

In many remote villages of Nepal, people from this community have been performing for the society at homes and temples for extremely low returns, for ages.

Anthropologist Carol Tingey says, “The Damais occupy a unique place within this immense cultural diversity. They are thought to be an auspicious caste in Nepal who are professional musicians while their supplementary caste occupation is tailoring.” 

The cateist mentality prevalent in the society has sidelined this important role of the community, raising a wall between the ‘Dalits’ and ‘non-Dalits’ by undermining their devotion, emotion and contributions and their musical heritage.

This, despite the fact that the Damai musical heritage constitutes the very soul of the Khas culture in Nepal where Damai Baja (musical instruments) are compulsory in every cultural and religious rite or ritual of the Khas community. So much so that puja (obeisance) offered to divinities at their abodes is considered incomplete and in vain without their music.

On different sociocultural and religious occasions, the traditional musicians from this community play three different types of music—the Mangal Dhun, Ramkali Dhun and Malshree Dhun. Their music forms an inalienable part of marriage, Vratavandha (sacred thread ceremony) and other sacred rituals. In Karnali and Far-West regions, their music is essential for invoking Devata (the deities) in fairs, something that points toward the richness, beauty and importance of Damai music in our society.

Delving into their musical heritage, Panche Baja and Naumati Baja—two sets of musical instruments, comprising five and nine instruments—come to mind. Panche Baja consists of Damaha, Tyamko, Jhyali, Sanai and Dholaki whereas Naumati Baja is an ensemble of Panche Baja along with Karnaal/Narsinga and a pair of Damaha and Sanai. According to scholar Ramsaran Darnal, “Panche Baja used to be taken as a symbol of luck and fortune before the Vedic era. In Nepal’s temples, Nagara and other musical components of Panche Baja are played during puja. Due to this religious aspect, the Panche Baja is known as Dev Baja (God’s Band)”.

But the ‘caste system’ has ruined the divinity of this musical heritage, including Panche Baja and Naumati Baja, and its importance in society. Foreign scholars have done their PhD in Damaha, Panche Baja and Naumati Baja while we the Nepalis have failed to study our own musical heritage and realize its importance, thanks to this evil system.

Music is a boon for the whole of humanity, it is something that transcends religions, languages and territories. But in our society, music also signifies a particular community. For instance, we take the Dhime Baja as a heritage of the Newars, associate Dhamphu-Tunguna with the Tamangs and Damaha-Sanai with the Damais. Our ethnocentric thoughts contradict with universal values of music, making us incapable of embracing all these heritages as Nepali music and prompting coming generations to disrespect this heritage of ours. For instance, we do not see parents buying a Damaha for their children nor do we see a child playing the Sanai. Thanks to our mindset, youngsters are playing Western musical instruments like the guitar, drum set and the piano instead of native musical instruments.

Music has that healing effect: it gives humanity immense pleasure, helping it forget pain and sorrow. But for musicians from Dalit communities like Damai and Gandharva, music ends up inflicting torture to a people as it comes with a ‘tag’ and a stereotyped identity. In many villages, Damai musicians have to sit at the corner of the host’s house as the ‘tradition’ forbids them from going inside and eating with others. Even the so-called ‘high-caste’ people dance to the tune of Damai musicians, but they do not bother to show respect to the latter. All that these gifted musicians get as rewards are life-long wounds, disrespect, discrimination and disgust.

Our musical heritage particularly carries casteist flavor and vibes. The so-called non-Dalits give the tags of ‘touchable’ and ‘untouchable’ on the basis of music people play. The Damai and the Gandarva communities of our country are classed among the ‘untouchables’. The sole reason is the profession they hold—the musical instruments they play. Though the scenario has slightly changed, the casteist mentality has not changed much. 

For public consumption, people say, “We all are equal; there is no discrimination at all.” 

But the truth is different. News reports on caste-based discrimination and its consequences feature almost on a daily basis. 

Murder, physical torture, social boycott, segregation, extortion and other forms of punishment against the Dalits are going on unchecked even in an era where an increasing number of Nepali people are getting academic degrees from prestigious universities like the Oxford and TU. 

National development becomes possible with factors like cooperation, equality and social emancipation even when there’s a lack of cultural and natural resources.

Though the Constitution of Nepal has provisions against caste-based discrimination, the old, stereotyped caste system still prevails, ruining Nepal’s cultural and musical heritage, and destroying the beauty of our ethnic diversity. If we do not take caste-based discrimination seriously, this evil will fragment our society into various pieces like in Rwanda.

The Government of the Federal Republic of Germany has pledged an assistance of 100,000 Euros to support communities impacted by the devastating floods of September 2024 in Nepal.

 Ambassador Dr. Thomas Prinz, the German Envoy to Nepal, on behalf of the Government of the Federal Republic of Germany, signed the grant agreement with One Heart Worldwide for a project titled “Emergency Response and Recovery Plan for Continuation of Maternal and NewbornHealth (MNH) Services in Flood-Affected Areas of Sarlahi, Rautahat and Kavrepalanchowk Districts,” that aims to provide vital healthcare services in the affected regions. Surya Bhatta, Co-CEO of One Heart Worldwide signed the agreement on behalf of the organization, reads a statement issued by the Embassy of Germany.

One Heart Worldwide is an organization dedicated to improving access to healthcare for mothers and newborns in remote areas of Nepal for over a decade. Through this project, One Heart Worldwide will focus on maintaining access to basic health services, ensuring water and sanitation facilities, and delivering emergency supplies to pregnant women, new mothers, and their families in the three most heavily affected districts from the recent floods and fire: Sarlahi, Rautahat, and Kavrepalanchowk.

Rautahat, one of Nepal’s poorest districts, is home to a significant Muslim and Dalit population, who have been disproportionately affected by recurring disasters. Frequent floods, fires, and cold waves have made survival increasingly difficult for vulnerable communities. The recent fires have affected 25 households, while 53 people are rendered homeless. Similarly, Sarlahi and Kavrepalanchowk were heavily affected during the recent floods caused by the incessant rains.

The project will provide affected individuals with Dignity Kits, Winterization Materials, Hygiene Kits, and Kitchen Utensils, as well as Health Facility Medical Equipment and Supplies, and establish WASH (Water, Sanitation, and Hygiene) stations at healthcare facilities. The cold season is expected to have a particularly severe impact on pregnant women, new mothers, and young children.

“This is an important project for districts heavily affected by the recent disasters. With the harsh winter, we are relieved thatthe most vulnerable populations are receiving the support they urgently need,” said Ambassador Dr. Thomas Prinz, according to the statement.

“We are pleased to have signed this agreement with the German Embassy. This grant will provide critical assistance to mothers and newborns in these vulnerable communities, ultimately supporting the Government of Nepal’s ongoing efforts,” shared Mr. Surya Bhatta.

The project is slated to complete by June 2025.

The Ministry of Foreign Affairs has intensified diplomatic efforts to secure the release of Bipin Joshi, a young Nepali held captive by Hamas. Following reports that some hostages under Hamas control are being freed, Foreign Minister Arzu Rana has urged countries mediating with Hamas for a ceasefire to prioritize efforts for Joshi’s release.

As part of these efforts, Minister Rana held a telephone conversation this morning with Qatar’s Minister of State at the Ministry of Foreign Affairs, Mohammed bin Abdulaziz bin Saleh al-Khulaifi, who serves as Qatar’s chief negotiator and mediator in peace talks with Hamas.

During the call, Minister Rana emphasized Qatar’s pivotal role in facilitating ceasefire negotiations and appealed for special intervention to secure Joshi’s release. She highlighted Qatar’s long-standing friendship with Nepal and expressed hope that Qatar’s ongoing diplomatic engagement with Hamas would include efforts for Joshi’s safe return.

Minister al-Khulaifi informed Minister Rana that progress is being made in bringing Hamas and Israel to a ceasefire. He assured that Qatar is actively working to facilitate the release of hostages held by Hamas. Regarding Joshi, al-Khulaifi stated that Qatar would prioritize his case and expressed confidence that he would be freed, either in the initial phase of hostage releases or subsequent rounds.

Earlier, Minister Rana also sought assistance from the Egyptian government, which is similarly engaged in ceasefire negotiations with Hamas. Last week, she conveyed Nepal’s appeal through the ambassadors of Egypt and Qatar, urging both nations to intervene for Joshi’s release.

Additionally, Minister Rana had approached the Israeli government via Israeli Ambassador to Nepal,  Shmulik Arie Bass. The ambassador informed her that Israel had received reports of Hamas planning to release 34 hostages, including the elderly, women, children and those with critical health conditions.

The crisis traces back to Oct 2023, when Hamas launched a surprise attack on Israeli soil, killing over 1,000 people, including 10 Nepalis, and taking hostages, including Joshi. Since then, the Nepal government has been pressing for his release through diplomatic channels. Minister Rana has raised the issue at various bilateral and multilateral forums, including the United Nations, urging the international community to assist in securing Joshi’s freedom.

Most commercial banks in Nepal have kept their interest rates unchanged for the month of Magh (mid-Jan to mid-Feb). Of the 20 commercial banks in the country, 17 have maintained their interest rates on individual fixed deposits for the 10th month of fiscal year 2024-25, while two have lowered their rates, and one has raised.

Interest rates on deposits are not increasing as credit expansion by banks has been slow due to the prolonged economic slowdown. Because of excess liquidity in the banking system, the central bank mopped up Rs 40bn through a deposit auction on Sunday.

Laxmi Sunrise Bank is the only Class ‘A’ bank that has raised its interest rate for the new month. The bank, which offered 5.5 percent interest on individual fixed deposits in Poush (mid-Dec to mid-Jan), is now offering 5.75 percent in Magh.

Agricultural Development Bank Ltd (ADBL) and Nepal SBI Bank have lowered their interest rates on individual fixed deposits. ADBL, which offered 5.57 percent interest in Poush, is now offering 5.51 percent. It has kept the interest rate on institutional fixed deposits unchanged at 3.25 percent. Meanwhile, Nepal SBI Bank has decreased its rates by 0.5 percentage points for both individual and institutional deposits. Nepal SBI has fixed interest rates for individual and institutional fixed deposits at 5.5 percent and 4.5 percent, respectively, for Magh.

Citizens Bank International has raised its interest rate on institutional fixed deposits by 0.5 percentage points to 4.5 percent. The bank has kept the interest rate on individual fixed deposits unchanged at 5.65 percent.

NIC Asia Bank and NMB Bank are offering the highest interest rate of 6.6 percent on individual fixed deposits in Magh. The two banks are also offering the highest interest rate of 5.6 percent on institutional fixed deposits. Nepal SBI Bank is offering the lowest interest rate of 5.5 percent on individual fixed deposits. ADBL and Standard Chartered Bank are offering the lowest interest rate of 3.25 percent on institutional fixed deposits.

Nepal Bank Ltd, which has kept its interest rate on individual fixed deposits unchanged, has lowered interest rate on institutional fixed deposits by 0.55 percentage points to 4.15 percent.

Everest Bank Ltd, Global IME Bank Ltd, Himalayan Bank Ltd, Kumari Bank Ltd, Machhapuchchhre Bank Ltd, Nabil Bank Ltd, Nepal Investment Mega Bank Ltd, NIC Asia Bank, NMB Bank, Prabhu Bank Ltd, Prime Commercial Bank Ltd, Rastriya Banijya Bank Ltd, Sanima Bank Ltd, Siddhartha Bank Ltd and Standard Chartered have kept their deposit interest rates unchanged.

The government has paved the legal way for Nepali Information Technology (IT) companies to invest abroad by amending existing laws through an ordinance. An ordinance to amend some Nepal acts—one of the three ordinances that the government has recommended to the President to issue—enables Nepali IT companies to invest abroad, open their branch offices abroad and bring their earnings back to Nepal.

According to an official at the Ministry of Communications and Information Technology (MoCIT), interested companies must submit applications to the MoCIT to avail the facilities. “After studying the application and assessing the company’s capability, the central bank will provide foreign exchange facility to the company on the recommendation of the ministry,” the official said.

While the government is drawing flak for bypassing parliament to amend laws, industry people say the provisions introduced through the ordinance are crucial for the growth of Nepali IT industry.  They say the government’s fresh moves align with the policies and programs that the government brought for the IT sector through its policies and programs for the fiscal year 2024/25. While recognizing IT as a crucial sector for economic transformation, the budget speech stated that the government aims to achieve IT exports worth Rs 3 trillion and create 500,000 direct jobs over the next decade. 

Nepal exported $515m worth of software and IT services in 2002—a growth of 64.2 percent compared to the previous year, according to a study conducted by the IIDS. As many as 14,728 independent software developers, over 106 companies and more than 50,000 freelancers are involved in the IT service export industry, the report states.

Prime Minister KP Sharma Oli has said that the legal reforms brought through the ordinance will allow Nepali IT companies to invest abroad, open branch offices and legally repatriate their earnings home. “There were some legal hurdles in the IT sector, which the government has addressed through this ordinance,” Oli said in a social media post on Saturday. “We facilitate bringing IT earnings back to the country. We believe this will develop IT as a foreign currency-earning industry.”