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The Sichuan Series of Celebrations on China-Nepal 70th Anniversary of Diplomatic Relations and the Sichuan-Nepal Culture, Tourism, Economy and Trade Exchange Month commenced with an inaugural event held at Chengdu, China. 

The event held on Friday was jointly organized by Foreign Affairs Office of the Sichuan Provincial Government and the Consulate General of Nepal in Chengdu.

Speaking at the event, Director General of Foreign Affairs Office of Sichuan Province, Zhang Tao, reiterated the recent progress in connectivity between Nepal and Sichuan, highlighting the momentum of socio-cultural exchanges in the past year.

In his remarks, Ambassador of Nepal to China, Krishna Prasad Oli, reminisced about the historical ties shared by the two countries and more importantly, the bonds shared by the people of these countries. 

Chief Executive Officer of Nepal Tourism Board, Deepak Raj Joshi, stated that Nepal is ready to welcome Chinese tourists and offer them an unforgettable experience in every corner of Nepal. 

The Consul General confirmed the Consulate’s readiness to facilitate and encourage all forms of trade, tourism and cultural exchange initiatives between Sichuan and Nepal.

The event included performances from Chinese performers and Himali Cultural Group, who arrived in Chengdu for Sichuan-Nepal Culture, Tourism, Economy and Trade Exchange Month.

Various Nepali products were showcased by Nepali exhibitors during the event. During the month-long Sichuan series, Nepali local products’ exhibition and cultural exchange events will be held in different cities of Sichuan Province.

The Sichuan series is also expected to enhance integrated and robust cultural, trade, economic and people-to-people exchange between Nepal and Sichuan, according to the Consulate General of Nepal in Chengdu, China.

In the face of global trade uncertainties, Nepal must proactively adapt to geopolitical shifts while diversifying its economic partnerships. Strengthening regional ties, investing in domestic industries, leveraging supply chain shifts, and prioritizing digital transformation will be key to sustaining economic growth and reducing external dependencies. A well-calibrated trade strategy, backed by strong governance and infrastructure development, can enable Nepal to navigate the evolving global trade landscape with confidence.

Adapting to geopolitical realities

Nepal should reduce dependence on major powers like the US and China by expanding trade partnerships within South Asia and beyond. Strengthening economic ties with regional and interregional platforms such as BBIN, SAARC, BIMSTEC, ASEAN, IORA, and the African Union can provide alternative markets and enhance economic resilience. Additionally, closer engagement with EU agencies and Middle Eastern economies can help diversify Nepal’s trade and investment sources.

However, deepening foreign trade relations demands strong governance and accountability. Nepal must implement stricter scrutiny on foreign aid to ensure effective fund utilization, while also building trust with international donors.

Overcoming institutional challenges

A major roadblock to regional trade integration is bureaucratic inertia and political unwillingness to implement complex initiatives. Keay challenges include:

• Limited political commitment to advancing regional economic cooperation.
• Under-resourced institutions that lack the capacity to negotiate and implement effective trade policies.
• A shortage of skilled professionals with expertise in international trade and economics.

To overcome these obstacles, Nepal must prioritize institutional reforms and invest in building a capable workforce equipped to navigate the intricacies of global trade.

Solution: Invest in human capital

Nepal must empower its workforce with skills in IT, AI, and fintech to make the economy more adaptable to global shifts. Skilled labor will be a critical factor in leveraging the ongoing supply chain shifts from China to South Asia, where Nepal can benefit through IT outsourcing and low-cost manufacturing.

Diversification and self-sufficiency

To strengthen its economic base, Nepal must focus on domestic revenue generation. Key strategies include:

• Taxation reforms to enhance revenue collection and reduce reliance on foreign aid.
• Industrial growth and public-private partnerships (PPPs) to boost productivity and innovation.
• Regulatory simplification to eliminate bureaucratic red tape and foster a business-friendly environment.
• Digitization of trade and business processes to minimize corruption and improve efficiency.

Strengthening domestic industries

Nepal must reduce reliance on imports by fostering growth in agriculture, manufacturing, and services. Instead of exporting raw materials, Nepal should develop processing and manufacturing capabilities to create value-added products. Agro-based, herbal, natural fiber, and bamboo industries hold significant potential to generate employment and exports.

FDI and trade policy reforms

To attract FDI, Nepal should offer incentives in manufacturing, energy, and technology sectors. Simultaneously, tracking global trade policies—especially tariffs imposed by the US on China, the EU, and India—can help Nepal identify trade opportunities and capitalize on shifting market dynamics. Key considerations include:

• Analyzing how global firms and markets are adjusting to US tariffs and leveraging these shifts to Nepal’s advantage.
• Assessing the impact of rising consumer costs in the US and negotiating preferential market access for Nepali products.
• Capitalizing on the supply chain shift from China, which is expected to redirect five percent of global production to South Asia. Nepal can position itself as a hub for IT services and cost-effective manufacturing, provided it reforms labor laws to ensure fair wages and job security.
• Rather than pursuing retaliatory trade measures, Nepal should adopt a strategic diplomatic approach, negotiating preferential market access while quietly building trade capabilities.

Infrastructure and trade facilitation

The government must focus on policy reforms, trade facilitation, and accreditation to ensure that Nepali products meet international standards. Key infrastructure investments include:

• Developing transshipment ports to enhance access to international markets.
• Strengthening logistics and port-road connectivity to reduce trade bottlenecks.
• Enhancing trade-related services to streamline export and import processes.

Nepal must also maximize economic diplomacy by leveraging the Hub and Spoke Mission approach. Appointing trade specialists and improving foreign policy foresight and scenario planning within the Ministry of Foreign Affairs can strengthen Nepal’s position in international trade negotiations.

Conclusion

Given the shifting geopolitical landscape and evolving US trade policies, Nepal must tread carefully to safeguard its trade interests. The US’s increasing reliance on tariffs and sanctions as economic tools, along with rising tensions between major global economies, calls for a strategic and diversified approach in Nepal’s trade policies. To strengthen resilience, Nepal must focus on regional cooperation, trade diversification, and digital transformation while ensuring robust governance and policy reforms.

Inclusive education is the approach where equitable access to quality education for all, including individuals with physical, sensory, intellectual, and developmental disabilities, is ensured by integrating them into mainstream settings with necessary support, fostering equal opportunities, skill development, and overall well-being. Nepal’s Constitution of 2015, the Compulsory and Free Education Act, 2075 has devised several provisions pertaining to inclusive education. In the backdrop, this article at first discusses the key policy provisions, then it presents progress in line with the policy and program and points out key challenges and finally offers a way forward. 

Policies to promote inclusive education

Nepal’s Constitution of 2015, under Article 31, upholds the right of every citizen to accessible and equitable education, ensuring compulsory and free education up to the basic level and free education up to the secondary level. It reinforces inclusivity by mandating free higher education for individuals with disabilities and those from economically disadvantaged backgrounds. Recognizing diverse learning needs, the Constitution guarantees visually impaired students’ access to free education through Braille script and ensures that students with hearing or speech impairments receive education in sign language. Furthermore, it safeguards linguistic inclusivity by affirming the right of every Nepali community to receive education in their mother tongue and establish educational institutions to promote their language and culture. 

Similarly, Article 40 guarantees free education with scholarships for Dalit students from primary to higher education, along with special provisions for their access to technical and professional fields. The Compulsory and Free Education Act, 2075, aligns with the Constitution to ensure that all public school students receive textbooks through local-level distribution, while also guaranteeing free higher education for economically disadvantaged, disabled, and Dalit citizens. Section 27 of the Act requires private schools to operate early childhood and basic education with a focus on public welfare, mandating at least 10 to 15 percent student reservation based on school size. 

Other policy provisions that talks of the inclusive education are national policy and plan of action on disability (2006), special education policy (1996), equity strategy (2014), international commitment on MDGs (2016-2030), Incheon conference in Spain ( 2015),  all the national plans after 10th  plan has prioritized the inclusive education.

Implementation status of the inclusive education in Nepal

Nepal has made significant efforts to promote inclusive education through a variety of initiatives. A case study jointly conducted by the Education Journalists Group (EJG) and British Council covering select schools in three districts namely Nawalparasi, Syanja and Palpa reveals that some schools in the districts have started giving due attention to inclusive education. The study mentions that Chandeshwari Mavi Gudar in Kawasoti, Nawalparasi, has comparatively improved access to education for the Majhi, Musahar, and Bote communities in Kawasoti-15. This improvement was achieved through a door-to-door campaign, awareness-raising activities, scholarship support, and the creation of a child-friendly school environment, among other initiatives.

To address educational disparities, the Curriculum Development Center (CDC) has developed a sample curriculum for 26 mother tongues, published reference books in four, and created children's learning materials in 15. In grades 1–3, the local curriculum is taught five times a week with 100 full marks and 160 teaching hours per year, while in grades 4–8, it is taught four times a week with 100 full marks and 128 teaching hours per year. This apart, various scholarships have been provided to marginalized groups, including students with disabilities, Dalits, girl students, children from endangered castes, children of martyrs, and those from Karnali. 

Furthermore, Girls’ Scholarship Programs (GSP) support girls and children from marginalized communities to promote education and reduce dropout rates. GSP also provides special scholarships for students in Karnali Province. Similarly, since 2019, Karnali Province has implemented the ‘Bank Khata Chhoriko Suraksha Jiwan Bhariko’ program to promote gender equality and financial security for girls. Under this initiative, a bank account is opened for girls born after July 2019, with an initial government deposit of Rs 1,000, followed by a monthly deposit of Rs 500 until they turn 20. However, thes program has been affected lately. 

Madhes Province launched the ‘Beti Padhau Beti Bachau’ (Educate Daughter, Save Daughter) campaign in 2019 to improve girls’ education across eight districts. The program provides school-going girls with bicycles for easier travel and social connections. Additionally, baby girls born on or after 15 Jan 2019, are insured under the program, receiving Rs 125,000 upon obtaining their citizenship certificate to support their education.

Likewise, informal, open, and home education programs have been implemented alongside formal education, and disability-friendly school infrastructure has also been prioritized. Religious educational centers, such as Madrasas and monasteries, have also been recognized as formal education institutions,  with budget allocations. Teacher recruitment processes have been made more inclusive, and training programs have been offered to equip educators with the skills to support diverse learners. “Some schools have started identifying different types of disabilities, grouping students accordingly, and using appropriate teaching methods”, the case study report mentions. Teachers have become more sensitive to disability issues and have adapted their teaching approaches to support these students effectively.  

Initiatives like the Midday Meal program have also been implemented to support student nutrition and improve attendance. Furthermore, some schools now provide free sanitary pads to support girls’ education and reduce dropouts during menstruation. The Sanitary Pad Distribution and Management Procedure, 2019 ensures free sanitary pads in public schools as part of a broader campaign for “dignified menstruation,”. “There are many positive changes in terms of addressing issues from inclusivity perspective with the support from the British  Council Nepal”, the case study mentions.

Challenges

Despite legal and institutional support, mother tongue education has struggled due to a lack of textbooks, trained teachers, and a mindset that sees it as difficult. Most local governments are unwilling to invest in the necessary infrastructure, and even declared multilingual schools fail to teach in languages other than Nepali.  

Bullying is another hindrance to the progress of inclusive education. The case study revealed that an 8th-grade girl student at Chandeshwori Secondary School in Gudar, Nawalpur, suddenly stopped coming to school. After a thorough inquiry by the teacher, it was discovered that she had quit school due to bullying from her classmates, who would tease her for her dark complexion and being born to a Majhi family. 

Furthermore, Nepal’s remote regions, plagued by poverty, superstition, and religious and cultural bigotry, have created environments where marginalized groups struggle to access education. The lack of comprehensive policies addressing the educational needs of children from nomadic communities, such as the Raute, further compounds the issue. Despite the push for girl-friendly and disability-friendly schools, efforts have failed to yield meaningful results. Corruption has also affected the true spirit of some initiatives. For example, despite the positive intentions behind Madhes’s ‘Beti Padhau Beti Bachau’ campaign, the initiative has faced criticism over alleged fund mismanagement, particularly concerning the allocation for bicycle purchases.

Way forward 

To advance inclusive education in Nepal, focus should be on improving teacher training to equip educators with skills for diverse student needs, particularly those with disabilities. Anti-bullying measures and stigma reduction must be prioritized to create supportive learning environments. Expanding resources and infrastructure for marginalized and remote communities, including disability-friendly facilities, is essential. Strengthening policy implementation and addressing corruption will ensure transparency in educational programs. Additionally, promoting multilingual education through resources and teacher training is crucial for equitable access to education for all. These steps will help ensure every child in Nepal has equal opportunities for quality education.

Nepal has achieved remarkable success in poverty reduction, nearly eradicating extreme poverty, largely driven by remittances. To strengthen future growth, Nepal should prioritize policy actions that unlock domestic opportunities, according to the World Bank’s Nepal Country Economic Memorandum: Unlocking Nepal’s Growth Potential, released on 24 March 2024. 

Despite progress, Nepal’s economic growth lags behind regional peers. Nepal’s economy grew at an average annual real rate of just 4.2 percent between 1996 and 2023, ranking sixth out of eight South Asian nations, the report states. Structural challenges such as low productivity, declining exports, and a stagnant industrial sector have held back the economy and led to slow job creation in non-agriculture sectors. Young workers are migrating abroad in search of better job opportunities as domestic prospects remain limited.

“Nepal’s success in poverty reduction is impressive, but its economic potential remains largely untapped,” said David Sislen, World Bank Division Country Director for the Maldives, Nepal and Sri Lanka. “Nepal has significant potential to drive stronger growth and create jobs by implementing key reforms to increase the returns from migration, boost exports, use hydropower efficiently, and boost digitalization.”

“The 16th Plan for Nepal outlines a vision of good governance, social justice and prosperity and prioritizes productivity and competitiveness, decent and productive jobs, social security, and ensuring a smooth transition from LDC status. The government is committed to ensuring an enabling policy environment for Nepal’s sustainable growth,” said Vice Chair of the National Planning Commission, Prof Shiva Raj Adhikari.

Produced every five years, the Nepal Country Economic Memorandum offers a roadmap for faster growth in key sectors. It recommends policy actions in four critical areas to unlock Nepal’s economic potential.

A systematic and institutionalized migration system can enhance the returns from migration, the report states: Integrating migration into national development, job creation, and poverty reduction strategies will provide a platform to work toward such a system. Policies should focus on reducing the cost and increasing the benefits and safety for current low-skilled migrants, while also eyeing longer-term skill and destination diversification.

Expanding and better implementing bilateral labor agreements will be critical. Initiatives promoting entrepreneurship and retraining and reskilling programs would allow returning migrants to reintegrate into the domestic labor market, according to the report. 

Improving market competition in key sectors and addressing infrastructure deficits can boost exports. Better managing inflationary pressures would address the erosion of exporters’ price competitiveness, it states: Encouraging people to use remittances for investments and business growth could help ease inflation. Simplifying the process for businesses to get tax refunds on imported materials and lowering import taxes would make it easier for them to export more products. With Nepal’s transition from Least Developed Countries status and the loss of trade preferences, authorities should seek additional preferential trade agreements. 

Developing a clear financing strategy to develop the hydropower sector will help mobilize much-needed investments, goes the report. This strategy could include developing the domestic bond market and an effective framework for large-scale public-private partnerships. Strengthening the regulatory and legal frameworks, by reducing bureaucratic red tape and streamlining the current licensing process, would improve the structure of the electricity market and attract additional investment, the report adds.

Nepal Tourism Board emphasized the promotion of Buddhist tourism at the 'Nepal-Myanmar Trade and Tourism Expo 2025' held in Yangon, Myanmar.

The program was organized on March 21 and 22 on the occasion of the 65th anniversary of diplomatic relations between Nepal and Myanmar.

During the expo, Buddhist tourism was promoted and Nepali tourism products, information technology solutions, and other products were also showcased.

A total of 16 tourism companies from Nepal and 30 from Myanmar took part in the event.

On the occasion, Nepal said that special emphasis should be given to promote Buddhist tourism while urging Myanmar tourists to visit Lumbini through flights to the new Gautam Buddha International Airport (Bhairahawa) in Nepal.

Myanmar Union Minister U Tun Ohn, Nepal's Ambassador to Myanmar Harish Chandra Ghimire and Nepal Chamber of Commerce President Shiva Agrawal jointly inaugurated the expo.

Addressing the program, Minister U Tun Ohn stressed on the need for cooperation in tourism promotion while strengthening trade relations between Nepal and Myanmar.

Experts and politicians have said that Nepal should learn lessons for the country's economic growth and physical prosperity from China's development initiatives.

At a program organized by Friends of Silk Road Club-Nepal on 'China's Two Sessions 2025: Lessons, Opportunities, and Implications for Nepal' on Thursday, they stated that Nepal can learn lessons and benefit from China's economic rise made in the last four decades.

Standing Committee Member of the CPN-UML and former Industry Minister Karna Bahadur Thapa said we should expand Nepal-China relations and take maximum benefits through partnership for the implementation of sustainable development policies. "For this, we should deepen our diplomatic ties through political level," Thapa added.

Likewise, CPN (Maoist Center) central committee member and Bagmati Province Assembly Member Yubraj Chaulagain called for intensive collaboration on economic issues between Nepal and China adding that rising economic power of China could be beneficial for Nepal's development efforts.

Similarly, Nepali Congress central committee member Madhu Acharya argued that Nepal could advance ahead by taking technical expertise from China adding that China's stride in technological advancement was impressive.

Also speaking at the programme, Executive Director of CEDA of Tribhuvan University (TU) Prof Dr Arjun Kumar Baral and foreign affairs expert Gopal Khanal said that China's strategies on economic growth, industrialization, modernization, good-governance and reforms are the key areas that Nepal should learn from Chinese experiences.

General Secretary of Club Dr Kalyan Raj Sharma stressed the need of investment partnership with China adding that Nepal can bring in a huge amount of FDI from China by further deepening our ties.

Spend a few minutes scrolling through social media about Nepal, and you might get an impression that the country is in a state of irreversible collapse. Political instability, corruption, the mass migration of young people, bureaucratic deadlock—these dominate the discourse. The prevailing sentiment: Nepal has no future. Everything is a disaster. But is this the ground reality, or are we trapped in a collective mood—a pervasive atmosphere of despair that shapes how we interpret events? 

Martin Heidegger, the German philosopher, argued that moods are not just personal emotions but collective states that shape how people perceive the world. A mood is not simply a fleeting feeling; it determines what appears possible or impossible. When we are in despair, everything looks hopeless. When we are optimistic, the very same circumstances can seem full of opportunity. The danger is that we mistake the mood for reality.

Right now, Nepal seems gripped by a mood of crisis. Every political event is framed as another step toward collapse. Social media amplifies outrage and negativity, reinforcing the belief that nothing works, that all roads lead to failure. 

Even during periods of political stability, opposition forces often work to undermine it. Even when policies are introduced, bureaucratic inertia slows them down. In such an atmosphere, even genuine progress can go unnoticed, overshadowed by a narrative of dysfunction. Consider the issue of youth migration. Thousands of young Nepalis leave the country every year in search of better opportunities. But this fact alone does not mean Nepal is doomed. Migration is not unique to Nepal—many countries, even developed ones, experience waves of emigration at different points in their history. What matters is how a country responds. Will Nepal create conditions that encourage its youth to return with skills, experience and investment? Or will we resign ourselves to the belief that youth migration is irreversible? 

Our answers to these questions are shaped by our collective mood. 

Political instability is an undeniable reality, but does that mean democracy itself has failed? Nepal has seen frequent changes in government, but it has also witnessed major democratic movements, an engaged electorate, and a growing demand for accountability. Corruption remains a problem, but civic activism, investigative journalism and digital transparency tools are also emerging. The bureaucratic system is slow, but Nepal’s private sector—especially entrepreneurs in digital industries—continues to innovate despite these hurdles. And yet, these positive aspects rarely define the national conversation. 

Instead, the dominant mood ensures that we focus only on dysfunction.

The possibility within breakdown

Heidegger also gives us another lens: breakdown. When things no longer function as expected, when the structures we rely on falter, we are forced to confront possibilities we may not have seen before. A system in crisis is also a system in transition. History shows that moments of instability often precede major transformations. 

Many of today’s thriving economies—South Korea, Singapore, even post-war Germany—went through prolonged periods of political and economic crisis before they found their footing. Their progress was not inevitable; it was made possible because they saw their breakdowns as moments of reevaluation rather than permanent decline. 

Nepal is at a similar juncture. The problems are real, but so are the possibilities. The same youth who are leaving for opportunities abroad are also part of a globally-connected, highly-skilled generation. The same political instability that frustrates us is also a sign of democratic contestation—a struggle to define Nepal’s future rather than resigning to a single, unchangeable fate. The same bureaucracy that slows progress also means that any reform, when it happens, has the potential to be institutionalized for the long term.

If we see only the breakdown and not the possibility within it, we risk deepening our national pessimism. And pessimism is not just an attitude; it shapes action. A country that believes it has no future acts accordingly. Talented people leave instead of staying to build. Entrepreneurs hesitate instead of investing. Policymakers, sensing the public’s resignation, prioritize short-term survival over long-term vision. But the opposite is also true. If we start recognizing the possibilities within this moment, we will act differently. We will invest, innovate, and engage. We will challenge the systems that don’t work rather than accepting them as permanent. Change begins not just with policy but with perception.

Choosing to see possibility 

The power of mood is that it determines what we believe is possible. And what we believe is possible determines what we attempt to build. If Nepal continues to see itself as a country on the brink of collapse, it will act like one. But if it sees itself as a country in transition, in the messy but necessary process of change, then it can begin to focus on solutions rather than just problems. This is not an argument for blind optimism. It is not about ignoring Nepal’s challenges or pretending that everything is fine. It is about resisting the easy, self-fulfilling trap of despair. 

Because in the end, national progress is not just about policies and politics, it is also about belief. Nepal’s greatest challenge today is not just political instability or economic hardship; it is the crisis of belief in its own potential. Just as mood shapes how we see the present, it also shapes what we believe about the future—and that belief, in turn, influences the path we take as a nation, from governance to progress and beyond.

The United States has reaffirmed its commitment to strengthening its partnership with the Government of Nepal.

 In response to inquiries from ApEx, a State Department spokesperson stated, “While programs that do not align with American interests have been terminated, the United States remains committed to strengthening its partnership with the Government of Nepal.”

Building on 77 years of successful collaboration, the United States is dedicated to supporting Nepal’s sovereignty by bolstering democratic resilience and promoting economic opportunities, the spokesperson added. When asked about the list of canceled projects under the United States Agency for International Development (USAID), the spokesperson noted, “The US Government's review of all foreign assistance is ongoing.”

Recently, US Secretary of State Marco Rubio announced that the Department of Government Efficiency (DOGE) had terminated 83 percent of USAID-run programs globally, amounting to the cancellation of 5,200 projects. While reports suggest that dozens of USAID-funded projects in Nepal have also been affected, there has been no official confirmation. Officials indicate that not only are ongoing projects at risk, but several American institutions in Nepal are also on the verge of closure. Regarding specific projects, the spokesperson said, “We do not have additional information to share on specific program awards at this time.”

On March 18, Minister for Foreign Affairs, Arzu Rana Deuba, met with Ricky Gill, Special Assistant to the President for National Security Affairs and National Security Council Senior Director for South and Central Asia, on the sidelines of the Raisina Dialogue in New Delhi. Gill assured Minister Deuba that the US would continue to support Nepal. “Gill and I also discussed Nepal-US ties, which are rooted in shared democratic and human rights values,” Rana said. “I am confident that our cooperation will continue to grow over the years.”

In a related development, a federal judge ruled that the dismantling of USAID likely violated the US Constitution. The court order requires the Trump Administration to restore email and computer access to all USAID employees, including those placed on administrative leave.

In his verdict, Judge Theodore Chung wrote, “The court finds that defendants’ actions to shut down USAID on an accelerated basis, including the apparent decision to permanently close USAID headquarters without the approval of a duly appointed USAID office, likely violated the United States Constitution in multiple ways.”

The ongoing debate surrounding Nepal’s Civil Service Bill raises concerns about the effectiveness of bureaucratic reforms and their potential to improve public service delivery. While the bill is a step toward modernizing the Civil Service Act, many argue that it fails to address the core issues plaguing the bureaucracy, including inefficiency, lack of motivation, and poor service delivery at the local level. The real question is whether the bill will bring about meaningful change or simply become another bureaucratic hurdle.

A decade has passed since the promulgation of the Constitution, yet the Federal Civil Service Act, has not been passed. The lack of this foundational law has contributed significantly to the problems at the local level. For example, while municipalities are designed to be self-governing entities, they face severe staffing shortages and inefficient resource management. The education branches of municipalities, such as those with 15 schools, are staffed with just four positions, including a deputy secretary, while rural municipalities with over 80 schools face similar issues. These staffing arrangements are meant to be a solution but have instead become a significant source of dysfunction.

Moreover, senior employees are often posted under junior subordinates, violating principles of natural justice and further exacerbating internal tensions. The mechanical process of adjusting staff has created more problems than it has solved, and currently, over 300 municipalities are struggling with administrative failures, which have become a chronic issue in the federal system.

The root causes of bureaucratic inefficiency are complex and multifaceted. Are employees demotivated because they lack a working environment conducive to productivity? Is it because they don’t have clear career development paths or feel marginalized in decision-making processes? These questions must be addressed before any meaningful reform can take place.Without a proper working mechanism and clear standards for promotion, transfer, and career development, employees often lack the motivation to perform at their best. Additionally, the public service system in Nepal remains highly politicized, with leaders often selecting personnel based on political loyalty rather than merit or competence. This system leads to inefficiencies, as unqualified individuals are placed in key positions, affecting the overall functioning of government bodies.

The current Civil Service Bill fails to tackle these deep-rooted issues. While it introduces provisions regarding the appointment of administrative heads in municipalities, the role of the provincial secretary, open competition quotas, and retirement age, these measures do little to address the fundamental problems within the bureaucracy. By focusing on these surface-level changes, the bill misses the opportunity to bring about real structural reform.

Currently, many employees in Nepal’s civil service are trapped in a system that does not reward merit or effort. Career progression is often determined by political considerations rather than performance, leading to widespread dissatisfaction. Moreover, the lack of effective leadership and clear communication further contributes to poor morale within the bureaucracy.

A cultural shift is needed within the civil service, one that prioritizes professionalism, accountability, and public service over political loyalty. This can only be achieved through comprehensive reform that goes beyond changes in the law and addresses the underlying values and systems that govern bureaucratic behavior.

The Civil Service Bill, as it stands, fails to address the core issues within Nepal’s bureaucracy. To improve public service delivery, governance, and development, a more comprehensive and thoughtful approach to reform is needed. The bill must go beyond surface-level changes and focus on creating a civil service that is motivated, accountable, and capable of meeting the needs of the people.

Ultimately, the key to improving bureaucratic performance lies in addressing the root causes of inefficiency, such as political interference, lack of motivation, and ineffective career development systems. If these issues are not tackled head-on, any new law or bill will simply perpetuate the existing problems rather than solve them. 

The government has started discussions with Cambodia to operate direct air services.

The government discussed the operation of the air service during a meeting with senior Cambodian government officials in Phnom Penh on Tuesday.

Minister for Culture, Tourism and Civil Aviation Badri Prasad Pandey, who is on a visit to Cambodia, held discussions with his Cambodian counterpart regarding the operation of direct air service between Nepal and Cambodia.

He also met with the Minister for Culture and Religious Affairs of Cambodia, Chay Borin, and discussed the matter.

On the occasion, discussions were held between Nepal and Cambodia on developing religious and tourism networks along with the Greater Buddha Circuit, the Ministry of Culture, Tourism and Civil Aviation stated.

Minister Pandey also discussed tourism promotion and various aspects of bilateral interests between the two countries.

With proper investment in infrastructure and athletes, Nepal can become a strong contender on the global stage. The support for athletes of every sport and enthusiastic cricket fan base indicate a promising future for Nepal to use sports as a tool for enhancing its global profile and soft power.

Sports transcend borders, cultures, ideologies and bring people together. It has long been a source of unity and competition among nations. Sports and athletic events provide a platform to foster international relations, promote peace, and build cultural exchanges between nations. Diplomacy in sports began in ancient Greece in 776 BC, where the Olympic Truce ensured the safety of athletes and spectators coming from different parts of the world by laying down their weapons during the Olympic Games.

Harvard University International Relations theorist Joseph Nye coined the term “soft power” in the 1990s. According to Nye, soft power is ‘the ability to get what you want through attraction rather than coercion’. The elements of soft power include diplomacy, foreign aid, democracy, culture, institutions, cinema, the internet, sports, etc.

Sports are not only an element of soft power but also a tool of public diplomacy. Sports can figure in all areas of public diplomacy. Soft power has gained a reputation in international relations in the modern world, where sports play a highly significant role as it serves as a non-political bridge between nations to enhance cultural exchange, promote peace and people to people relations. Hosting international sporting events tempts every country with the capacity to host, as the hosts can brand events to spread any particular message to the world. 

In addition to that, winning at a major event can raise or maintain the profile of an actor. Sports is one area in which Palestinians can attempt to achieve international standing and appear in the role of an independent country. The quest for national prestige is a primary driving force behind every country’s participation in international sporting events. 

Nepal has a unique geopolitical existence positioned between two emerging superpowers. It doesn’t figure prominently on the global map in terms of economic and military prowess or in terms of hard power. As a relatively small state with noticeable diversity in culture, tradition, religion and geography, Nepal has various soft power assets at its disposal to enhance its global recognition.

However, there is a significant asymmetry between Nepal and its neighbors and other globally impactful countries in terms of population, resources, influence in global politics and the economy. In that context, leveraging soft power becomes invaluable for Nepal to enhance its global prestige and among its various options, sports can be a powerful tool. Sports have been a major means of strengthening national unity and establishing national identity in the international arena. Developing and expanding sports would create healthy, competent, and disciplined citizens and establish Nepal’s identity while increasing its respect in the global stage. 

Nepal’s official foreign policy document also mentions sport as a medium to promote its soft power. Nepal participated in an international sporting event for the first time at the Asian games held in New Delhi in 1951. Nepal has participated in every Olympic game since its first participation in 1964, except in the 1968 Mexico Olympic Games. Bidhan Lama won Nepal’s first Olympic bronze in the demonstration event of Taekwondo in the Olympics (1988), but was not officially recognized. Palesha Govardhan won a bronze medal in the recently held Paris Paralympics in 2024 in the 57 kg Taekwondo event. Sabitra Bhandari, aka ‘Samba,’ Nepal’s women football icon is currently playing for the French women’s first division club EV Avant Guingamp. 

The world was surprised to learn about the huge fan following of Nepal cricket in the recently held ICC T20 World Cup held in the West Indies and the USA, the International Cricket Council (ICC) was posting and sharing the content, including posts about Nepal, time and again acknowledging the Nepali fan base. A famous cricket commentator, Ian Bishop, also praised the Nepali crowd as they had painted the whole Grand Prairie Stadium, Dallas in a sea of red and blue with Nepal’s beautiful jersey. 

Logan Van Beek, the Dutch medium pacer in the same game was unsure whether the game was being held in Nepal or Dallas because the crowd was so loud cheering for Nepal. These fans went to support Nepal with Nepali flags, ‘Panche Baja’, wearing ‘Dhaka Topi’, posters showing Buddha and Sagarmatha. This portrays sports can not only be a source of soft power but also a medium to promote other soft power elements and garner attention of the world community. These events highlight Nepal’s potential to gain international recognition through sports. With proper investment in infrastructure and athletes, Nepal can become a strong contender on the global stage. The support for athletes of every sport and enthusiastic cricket fan base indicate a promising future for Nepal to use sports as a tool for enhancing its global profile and soft power.

The Cricket Association of Nepal’s logo has one horned rhinoceros in an effort to promote the iconic animal and to attract tourists to Nepal. Nepali ‘Dhaka Topi’ is quite famous these days in the associate cricket world, thanks to our very own Andrew Leonard ‘Taklu Dai’, an Irish cricket commentator who mostly covers associate cricket commentary. European countries like Croatia, Denmark which are smaller in size and population than Nepal are regularly participating in FIFA world cup which have positively impacted their tourism industry. Nepal can do the same via sports by participating or hosting such events. While hosting global sports events like the FIFA World Cup, Olympic, Cricket World Cup might seem far from reality as of now, we can host regional events and other events unique to us such as Elephant Polo and Himalayan-based sports like cycling and marathon in the hills, etc. to promote our culture, natural beauty and hospitality. Such events not only promote tourism but also enhance our prestige. 

Recognition also aids in cultural diplomacy. Which will have a significant positive impact on our economic growth. Climate change has affected Nepal to a large extent. Organizing sporting events based on hills and mountains provide a good platform to share our story with the world and advocate for addressing such consequences of climate change.

When Nepal plays an international game, whether it is at Tribhuvan University cricket ground, Dasarath Stadium, or anywhere else in the world, it brings all the Nepalis together and unites them as one people forgetting their ethnicity, religion, culture, ideology, or geography. Their common identity becomes that of Nepali. With a significant portion of the youth population interested in sports in Nepal, if local leagues with improved training facilities are developed, sports can play a pivotal role in our soft power arsenal, generate significant goodwill towards Nepal, shape others’ perceptions of our country and enhance Nepal’s image on the global stage.

The policy reforms initiated by the government through different ordinances seem to have started delivering results. Nepal received the highest foreign investment commitment so far in the fiscal year 2024-25 in the eighth month i.e., mid-February to mid-March.

According to the Department of Industry, it provided approvals for foreign investment worth Rs 17.79bn for 40 projects during the review month. The monthly report of foreign investment approval shows 19 applications for foreign direct investment came through the automatic route, while 21 came through the traditional route. These projects will create 833 new jobs. With this, the total investment commitments received over the eight months of the current fiscal year have reached Rs 44.66bn for 427 projects.

In the previous month, Nepal received foreign investment commitments worth Rs 1.06bn for 32 projects. The government introduced ordinances in the second week of January to amend several laws to improve the business environment in the country. A study conducted by the department has revealed that policy shortcomings are the main reason for low FDI inflows. The study found that several policy and practical challenges were affecting the implementation of the Foreign Investment and Technology Transfer Act, 2018. The government has tried to address some of them through the ordinances.

Several acts like the Foreign Exchange (Regulation) Act (1962), Company Act (2006), Special Economic Zone Act (2016), Foreign Investment and Technology Transfer Act (2019), Public Private Partnership and Investment Act (2019), Industrial Enterprise Act (2020) and Arbitration Act (1999) have been amended through the ordinances. The ordinances have been approved by both chambers of the Parliament, and replacement bills are being introduced.

Of the total foreign investment commitments received in mid-February to mid-March, 39 are for small industries, and one is for medium-scale industries. The growing increase in FDI toward small industries can be attributed to the government’s decision to lower the minimum foreign investment threshold to Rs 20m.

According to the report, 50 percent of the total committed amount received so far in 2023-24 is in the service sector, followed by tourism (40 percent), manufacturing (six percent), ICT (2 percent), and agriculture (two percent). In terms of the number of industries, 180 are in the tourism sector (42 percent), 154 in the ICT sector (36 percent), 54 in the service sector (13 percent), 50 in manufacturing (seven percent), seven in the agriculture sector (two percent) and one each in the energy and infrastructure sector.

However, there is a significant gap between FDI commitments and actual realization with only a fraction of pledged amount flowing into the country. In 2023-24, only 13.59 percent of the pledged Rs 61.78bn, amounting to Rs 8.4bn, translated into actual FDI inflows whereas in 2022-23, just Rs 6.17bn out of the Rs 38.4bn in approved foreign investments materialized as actual investments. In 2021-22, Rs 18.56bn out of the Rs 54.15bn in commitments flowed into the country as actual investments.

King Prithvi Narayan Shah, the founder of modern Nepal, once stated, ‘Nepal is a yam between two boulders.’ This statement has become an evergreen mantra for understanding and managing Nepal’s foreign affairs. According to him, the ‘two boulders’ are India and China, and Nepal’s strategy has always been the ‘strategy for survival,’ as rightly pointed out by Leo E Rose. In realpolitik, all strategies are inherited within the geography of the country—‘Geography is the mother of strategy’. Secondly, geography stands as the most prime factor in implementing the foreign policy of any state because, in most cases, it is ‘fixed’.

Within Nepal, the sentiment of the people has always been a fear of two dynamics: the fear of foreign intervention and natural disasters/earthquakes. To elaborate further, Nepal shares close ties with India in many aspects, from geography to politics, economy, and culture. People in Nepal often find themselves in a forced position to balance ‘sovereignty and integration’ with India. At the same time, China is no longer an ‘inactive’ force in global politics and has an interest in South Asia. That ‘interest’ is sometimes ‘hard’ too. As a Nepali, the fear of being caught in the ‘radar’ of these giants, including the impact of extra-regional powers like the US, can’t be ignored. Nepal resides in an earthquake-prone area, and the foundation of every development must focus on earthquake resilience. These two ‘fears’ have been haunting Nepal and its people for quite a long time.

Power centers have a ‘natural’ interest in the country located between two giants with a comparatively low level of governance efficiency and societal development, allowing foreign aid  ‘projects’ to flourish, thanks to an unfavorable investment climate that curtails FDI in the country.

Nepal-India development partnership

Since the 1990s, India’s foreign aid to Nepal has been largely guided by the Gujral Doctrine. The doctrine states that, “India does not ask for reciprocity with its neighbors like Nepal, Bangladesh, Bhutan, the Maldives and Sri Lanka. Instead, it gives and accommodates what can be given in good faith and trust.” However, as a neighbor, India has not effectively translated these narratives with its smaller neighbors, resulting in tensions from time to time.

When Indian Prime Minister Narendra Modi assumed power in 2014, he endorsed the Neighborhood First policy, making five trips to Nepal—unprecedented in the past 17 years for any Indian Prime Minister. These visits symbolized strong ties and demonstrated a commitment to collaborating with Nepal based on its development needs. Since May 2014, there have been 17 exchanges at the level of Head of State/Head of Government. Aligned with the ‘Neighborhood First’ policy, Indian Prime Minister Modi has visited Nepal five times, and the Nepali Prime Minister visited India eight times since Jan 2015.

Since 1954, after the establishment of the Indian Aid Mission in Nepal, India has supported Nepal in the development of major infrastructure projects, including the construction of Tribhuvan International Airport, water supply systems and hospitals.

After India’s economic blockade in 2015, India has been actively involved in the development of connectivity with Nepal through construction of Integrated Check Posts and Railways in Nepal. To facilitate the construction of two broad-gauge cross-border railway links—Jayanagar-Bardibas and Jogbani-Biratnagar—financial and technical assistance was provided to Nepal. Furthermore, MOUs were signed to conduct the Final Location Survey for the proposed broad-gauge line between Raxaul and Kathmandu in October 2021. The Draft Detailed Project Report resulting from this Final Location Survey was submitted to Nepal in July 2023 for review and consideration. In FY 2020-21, India provided a grant of $10.93m, a loan of $60m, and $1.38m as Technical Assistance.

India’s shift

The year 2015 marks India’s shift away from engagement in politically sensitive issues with Nepal (in most cases), replacing it with a focus on development agendas. Additionally, India’s grassroots engagement has been facilitated through High Impact Community Development Projects (HICDPs). In Jan 2024, the cap of each project under HICDPs was increased to Rs 200m. Due to India’s intense engagement in Nepal’s political affairs since 1950, HICDPs have been at the center of debate in Nepal, with concerns about India's alleged intervention at the grassroots level to promote its vested interests.

Challenges

Despite such collaborative efforts, Nepal’s trade deficit with India has been steadily increasing. In 2015-16, Nepal’s trade deficit with India stood at $3,581m, with exports amounting to $419m and imports reaching $4,000m. By 2021-22, Nepal’s exports to India had increased to $1,330m, while imports surged to $9,580m, resulting in a trade deficit of $8,250m. In May 2024/25, Nepal’s trade deficit with India reached $9.63bn. This growing trade deficit is primarily due to Nepal’s heavy reliance on Indian petroleum products, vehicles and consumer goods, while Nepal’s exports, mainly agricultural products, struggle to compete in the Indian market.

In April 2022, both countries released a ‘Joint Vision Statement on Power Sector Cooperation’ to enhance power cooperation. However, within Nepal’s political circles, many Nepalis perceive this vision statement as India’s attempt to control Nepal’s water resources while discouraging investment from other foreign players. This perception has been reinforced by India’s consistent reluctance, both in actions and statements, to purchase electricity generated through Chinese capital or contractors in Nepal.

Way forward

Concluding all of the above, India has been focusing on connectivity issues between Nepal and India after India’s economic blockade in 2015, moving away from hardcore political issues. The increasing connectivity with India will help Nepal unlock new potentials, but due to Nepal’s own internal limitations and turbulence, this has resulted in a deeper economic dependency on India rather than interdependence.

India’s involvement at the grassroots level, aimed at empowering local communities through foreign aid and accounting for 35 percent of FDI stock, undeniably highlights its significance in Nepal. Furthermore, Nepal’s geographical positioning—surrounded by India on three sides—places it in a ‘locked’ relationship with India. The interplay between geographical proximity and distinct national identity has led to numerous fluctuations in their political dynamics since the 1950s.

From Nepal’s side, there is a growing perception that India is accelerating its connectivity development projects in Nepal at a time when Nepal is overwhelmed by multiple development commitments from China. Whether India is responding only after Chinese pledges to Nepal or if this is merely a coincidence remains a matter of debate. However, the narrative in Indian media and public discourse about Nepal shifting toward a pro-China stance is a fabricated attempt to undermine bilateral relations between Nepal and India.

Summing up, Nepal and India should move ahead by taking into account each other’s security sensitivities resulting from the open border.

The International Monetary Fund (IMF) has urged Nepal to strengthen its financial regulations following its recent inclusion on the Financial Action Task Force (FATF) gray list. The call comes as the IMF approved a $41.8m disbursement under the Extended Credit Facility (ECF), bringing total disbursements to $289.1m in support of Nepal’s budget and economic recovery efforts.

The ECF arrangement, approved in Jan 2022 for about $372.2m, has facilitated Nepal’s economic recovery while ensuring macroeconomic and financial stability. Despite these efforts, the country faces challenges, including subdued domestic demand and the impact of the Sept 2024 floods.

The IMF projects Nepal’s economic growth at 4.2 percent for FY 2024-25, supported by increased capital spending on reconstruction, an accommodative monetary policy, and additional hydropower generation. Inflation is expected to remain close to the Nepal Rastra Bank’s target of five percent. However, risks such as under-execution of capital spending, financial-sector vulnerabilities, and political instability remain.

Bo Li, Deputy Managing Director of the IMF, acknowledged Nepal’s progress despite political and climate-related disruptions. He emphasized the importance of prudent fiscal policies, revenue mobilization, and structural reforms to sustain growth.

The IMF urged Nepal to continue fiscal consolidation while increasing capital spending and protecting vulnerable populations. It welcomed Nepal’s Domestic Revenue Mobilization Strategy and called for strengthening public investment management and fiscal transparency. On monetary policy, the IMF recommended a cautious, data-driven approach to maintain price and external stability. It also emphasized the need to amend the Nepal Rastra Bank Act to enhance governance and accountability.

The financial sector remains a key concern, with the IMF advising regulatory alignment with international standards and the development of a strategy to address weaknesses in savings and credit cooperatives. The Fund also stressed the urgency of strengthening Nepal’s anti-money laundering and counter-terrorism financing framework in light of its FATF gray listing.

The IMF further highlighted the need for structural reforms to enhance the business climate, improve governance, and strengthen anti-corruption institutions. Given Nepal’s vulnerability to natural disasters, it called for resilience-building measures to mitigate climate shocks.

Nepal has ample renewable energy resources, which creates a feasible opportunity for hydrogen production. There is still a worldwide debate on the best medium for producing hydrogen, where solar and hydropower are the key competitors. For Nepal, achieving a balanced energy mix is essential, and solar energy has the potential to play a larger role in the 10 percent share of alternative energy in the overall energy mix. Nepal has significant solar energy potential, comparable to its hydropower resources, making it an attractive option for diversification. This article evaluates the pros and cons of hydrogen production using solar and hydroelectric energy, with a comprehensive techno-economic comparison to determine the most suitable approach for Nepal.

Solar potential

Various studies demonstrate that Nepal has a strong solar energy potential. The Investment Board Nepal (IBN) issued its ‘Energy’ report in April 2024 which states that Nepal receives sufficient solar radiation to produce between 3.6 and 6.2 units of electricity per square meter area. The daily solar energy intensity across Nepal's surface reaches an average of 4.7 kWh per square meter. Statistical data demonstrates that solar energy possesses great potential for implementation. According to a study by the Alternative Energy Promotion Center (AEPC) and the German Agency for International Cooperation (GIZ), the estimated total technical potential for solar energy production in Nepal is 432 GW (432,000 MW), which is tenfold higher than the economic and technical potential of hydropower (42,000 MW).

Current status

The renewable energy sector of Nepal exhibits rapid growth through solar energy development with eight new solar plants with a combined capacity of 90 MW starting operations in FY 2023-24. The nation remains committed to developing its power mix by establishing strategic Power Purchase Agreements (PPAs) to add more solar power capacity. The Nepal Electricity Authority (NEA) uses competitive bidding to acquire solar energy, setting a price ceiling of Rs 5.94 per unit. In a recent initiative, the NEA invited bids for 800 MW of solar projects and the evaluation and PPA signing for these projects will occur in FY 2024-25. The move seeks to strengthen Nepal's energy supply system by adding solar power to the current hydroelectricity dominance while ensuring power stability during winters when hydroelectricity generation decreases. 

The NEA intends to acquire 800 MW of solar energy in two years following the bidding period as smaller projects (under 10 MW) will start generating electricity within 18 months and larger projects will reach commercial operation in two years. According to the White Paper of the Ministry of Energy, Water Resources and Irrigation published on 8 May 2018, by capping solar contributions to 10 percent of the total installed capacity through Power Purchase Agreements (PPAs), Nepal is accelerating for a more balanced energy future, ensuring consistent electricity supply while embracing renewable sources to meet a rising demand.

Current status of hydropower

Nepal’s power sector depends fundamentally on hydropower operations. As of February 2025, the installed hydropower capacity in Nepal has reached 3,255 MW while economic potential exceeds 42,000 MW. The country aims to generate 28,500 MW of hydroelectricity by 2035, of which 17,000 MW will be exported to neighboring countries India and Bangladesh through eight international transmission lines as per an announcement from Minister for Energy, Water Resources, and Irrigation, Dipak Khadka. 

Nepal’s commitment to electricity exports will not prevent it from maintaining surplus electricity that can be efficiently used for hydrogen production. Hydropower provides a dependable source of electricity for hydrogen electrolysis at scale because its energy output remains stable, unlike solar power which faces daily and seasonal changes. This consistent nature of hydroelectric power provides a solid base for Nepal’s hydrogen economy development.

Comparison of solar vs hydroelectric hydrogen production

The global competition for green hydrogen production is accelerating, so renewable energy sources serve as the core solution and solar and hydropower are dominant leaders in this transition. Each offers distinct advantages and faces unique challenges in this evolving landscape. Multiple important factors can be used to conduct an extensive analysis.

• Energy generation stability

Hydropower delivers uninterrupted power, which makes it a better hydrogen production source than solar energy because solar power depends on sunlight availability and shows intermittent fluctuations. The continuous operation of hydropower systems runs 24/7 to deliver steady energy streams. Solar energy generation operates within daylight hours with a seven hours daily average in Nepal, forcing the implementation of storage units or backup power for stable hydrogen production.

• Land use efficiency

The competition between these power systems depends heavily on how efficiently land resources are utilized. Each megawatt of solar PV farm needs 0.02 square kilometers of land space for installation, thus presenting challenges in Nepal's geographically restricted areas. Hydropower requires approximately 0.1 km² per MW and helps to capitalize the existing water resources and infrastructure. A strategic solution involving NEA land at hydro project locations for solar power installations would create a hybrid energy system that maximizes both technologies for green hydrogen production.

• Project timeline and operational lifespan

Solar PV and hydropower projects differ significantly in terms of construction duration, capacity range and operational lifespan. The installation period for Solar PV projects having a capacity below 10 MW in Nepal spans from six months to one year but projects between 10 MW and 50 MW require one to two years to complete. The duration of operation for these projects extends to 25 years from the Power Purchase Agreement date according to existing legal provisions but lacks any provisions for further extensions. In contrast, the duration for constructing hydropower projects depends on project size along with design complexity. 

Construction practices in Nepal indicate that projects without tunneling under 20 MW require a two-year duration while projects with tunneling need 2.5 years for completion. Projects with capacities between 50 MW and 100 MW need between 3 and 4 years to build, yet larger installations that surpass 100 MW require five years to complete because they present additional construction challenges. Hydropower plants exist for 50 to 100 years when maintenance is carried out correctly. Private sector projects receive their first 35-year operating license from government authorities, which can extend the authorization for another 15 years. The comparison of solar and hydropower shows that solar delivers swift implementation while hydropower maintains enduring operational capabilities, thus both systems represent fundamental elements for Nepal’s developing energy sector.

• Production efficiency

The capacity factor of a power plant represents the ratio of actual energy output to its maximum potential. A higher capacity factor ensures stable and predictable electricity supply that supports uninterrupted operation of hydrogen electrolyzers. For comparison, a 1 MW solar PV system operating at 20 percent capacity factor would generate 1,752 MWh annually to produce 35,040 kg of hydrogen when electrolyzed at 70 percent efficiency. In contrast, a 1 MW hydroelectric plant with 50 percent capacity factor produces 4,380 MWh of annual energy output, which results in hydrogen production of 87,600 kilograms. This means that hydropower can produce approximately 2.5 times more hydrogen per MW than solar power. The large-scale production of hydrogen through hydro-based methods proves more efficient in Nepal because hydropower constitutes a major portion of its energy mix. Hydropower benefits from solar energy integration since it provides additional flexibility and strengthens the electricity supply system.

• CAPEX

Capital investment is a key factor in selecting a renewable energy pathway for hydrogen production. Solar power plant installations in Nepal cost between Rs 60m-Rs 70m per MW but hydropower construction requires approximately NPR 80m per MW before adding the cost of electrolyzer units. The price gap between hydroelectric and solar-based hydrogen production indicates that hydropower stands as a more economically efficient option for big projects across Nepal because it delivers extended operational time and dependable output. However, solar energy remains an attractive option for diversification and hybrid energy solutions.

• OPEX

For hydroelectric power plants, the annual operation and maintenance expenses amount ranges from one percent to 2.5 percent of initial capital investment to cover turbine maintenance alongside dam maintenance and sediment removal. In contrast, solar power plants incur an initial O&M cost of two percent of the capital cost in the first year and then increase annually by five percent of the initial two percent. The maintenance expenses include operations on the panels and inverters in addition to the monitoring system maintenance. The initial maintenance costs of solar power are lower, but future expenses will rise because regular servicing becomes essential to preserve operational efficiency.

Cost comparison of hydrogen production

The cost of hydrogen production varies significantly depending on the energy source and country-specific strategies. The government of Chile intends to achieve annual green hydrogen production of 160m tons by 2050 through its extensive hydropower resources. The National Green Hydrogen Strategy of Chile envisions that the country will achieve 5 GW electrolyzer capacity by 2025 and 25 GW by 2030 with the goal to lower production costs to $0.8–$1.1 per kilogram by the end of the decade. 

Meanwhile, the United Arab Emirates (UAE) uses its extensive solar resources to become a dominant global player in solar-powered hydrogen manufacturing. Through its renewable energy flagship Masdar, the UAE plans to grow hydrogen market share globally to 25 percent by 2030 and increase its annual production to 1m tons. The UAE has established a strategy to decrease production expenses for hydrogen to $1-$2 per kilogram by 2030. The evaluation demonstrates that hydro-based hydrogen production in Chile generates lower production expenses yet solar-powered hydrogen from the UAE establishes itself as a competitive and scalable option for international hydrogen markets.

Pathway to green hydrogen leadership

Nepal can establish itself as a regional leader in green hydrogen production through its extensive hydropower resources combined with solar power integration, which creates a strong and resilient energy combination. Hydropower provides an efficient and cost-effective production method for large-scale hydrogen generation because it delivers stable renewable energy, which supports long-term sustainability and energy security. The combination of solar energy with hydropower enables better power flexibility and decentralizes hydrogen producing operations. Strategic investments, policy support and international collaborations will be crucial in unlocking Nepal’s hydrogen potential thus positioning the country as a key player in the global green hydrogen economy.

Speaker Devraj Ghimire has pointed out the need to further strengthen our cooperation with India for Nepal's sustainable development with a focus on an investment increase for promotion of mutual interests. 

In his address to the Kasthamandap Dialogue organised by the Foundation for Peace, Development and Socialism, here today, the Speaker stressed this. 

In the Dialogue centered on Belt and Road Initiate (BRI) and Nepal-China cooperation, the Speaker called for identifying new potential areas for Nepal-China cooperation and include them as projects under the BRI. 

As a close neighbor and good friend of China, Nepal takes pride in China's remarkable progress and aims to benefit from its extraordinary development through a broader economic partnership, Ghimire remarked. "We highly appreciate China's support and cooperation in Nepal's developmental endeavors," he added, expressing hope for significant assistance from the northern neighbor as Nepal moves towards graduating from the category of Least Developed Country (LDC) to a middle-income country by 2026 and also for the sustainability of this status.

Ghimire further highlighted that Nepal's historic relationship with China, based on mutual trust, understanding, and friendship, has been strengthened through the BRI. "This initiative is not just about infrastructure for Nepal; it should be viewed as an opportunity for Nepal to explore new avenues for economic growth," he said.

He also suggested that Nepal, leveraging its geographical position, has the potential to be developed into a 'transit hub.' To realize this, Ghimire stressed the need for enhancing bilateral collaboration on physical infrastructure, including roadways, railways, information technology, and trade relations.

Reflecting on the longstanding diplomatic ties between Nepal and China, which have flourished over the past seven decades, Ghimire affirmed that Nepal’s policies are guided by the five principles (Panchasheel) of peaceful coexistence. "We are always ready to take steps to deepen the cordial relations between our two nations," he added. He also reiterated Nepal’s commitment to the 'One China Policy' and described China as a reliable and significant development partner for Nepal.

Former Prime Minister and senior CPN (Unified Socialist) leader Jhalanath Khanal, who also spoke at the event, highlighted the BRI as a global development project that offers abundant opportunities for infrastructure development and expanding connectivity. "It is a boon for many countries around the world," he said, urging Nepal to ensure it capitalizes on the potential benefits.

China’s Ambassador to Nepal, Chen Song, shared about China's achievements in infrastructure development, information technology, industrialization, innovation, and research. He reiterated China’s strong support for Nepal’s developmental goals.

During the Dialogue, business communities and academics from Nepal and China are scheduled to exchange views on the implementation of the BRI in Nepal, its opportunities, and challenges.