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March 27, a family trip from Kathmandu to Dang became a grim metaphor for Nepal’s institutional decay. What should have been a 10-hour journey stretched into a 21-hour nightmare, with a single 14-kilometer stretch Daunee consuming ten agonizing hours, an indictment of criminally neglected infrastructure. The exhaustion of travelers—sleep-deprived, hungry, and choking in dust—mirrors the nation’s broader dysfunction: structurally intact yet crippled by systemic rot. The collapse is not limited to roads. Just days earlier, a devastating fire at a Dang plywood factory destroyed nearly Rs 400m in assets and left over 500 workers jobless. 

Chief District Officer Krishna Prasad Lamsal’s desperate pleas for firefighting support from neighboring districts and municipalities laid bare the shocking lack of emergency preparedness. These are not isolated incidents. In Kathmandu, Janamorcha and Rastriya Prajatantra Party cadres blockaded Ratnapark and other areas, paralyzing the capital’s transit, while Prime Minister KP Oli squandered a high-level economic forum on rustic analogies of buffalo - ticks and political jibes rather than substantive policy. Together, they expose a governance trifecta: crumbling infrastructure, unchecked political obstructionism, and executive unseriousness.

Federalism’s broken promise

The 2015 Constitution of Nepal, informed by seminal federalism theories, promised transformative decentralization. Yet nine years into implementation, subnational governments remain systematically disempowered—chronically under-resourced, understaffed, and stripped of meaningful autonomy, while political elites (KP Oli, Deuba, Dahal, MK Nepal, BR Bhattarai, JN Khanal) engage in perpetual factionalism at the expense of federal governance.

This institutional failure manifests in alarming macroeconomic indicators: public debt now stands at 47 percent of GDP (Rs 27trn), exceeding the 35.43 percent sustainability threshold identified by NRB seasoned economist Laxmi Prasad Prasai (2024), with annual debt servicing consuming Rs 402bn. Concurrently, Nepal’s recent grey-listing by the Financial Action Task Force (FATF) for failing to combat sophisticated financial crimes including systemic tax evasion and fraud further underscores institutional decay. Compounding this crisis is a perverse bureaucratic culture where civil servants demand additional ‘facilitation fees’ from citizens for routine services, despite receiving full salaries and allowances. This rent-seeking behavior, institutionalized at all levels of government, epitomizes how Nepal’s federal transition has been hijacked—not by constitutional design, but by entrenched interests that perpetuate centralized predation under the guise of federalism.

Critical infrastructure—Narayanghat-Butwal Highway, Nagdhunga Tunnel, Melamchi Water, Mugline–Pokhara Highway—remains mired in delays. Meanwhile, 6,200 youths leave the country daily for foreign employment, a stark exodus underscoring Nepal’s failure to secure its own future. The Local Government Operation Act (2018) remains a paper tiger, with provincial postings treated as bureaucratic exile. Subnational governments face chronic 23 percent budget shortfalls, while resources are allocated based on electoral patronage rather than developmental need.

The path forward

Nepal stands at an inflection point. Federalism’s promise has been hijacked by a new mind set of centralism, where even hiring school teachers requires Kathmandu’s approval. Three urgent reforms are critical:

• Administrative federalism: Devolve personnel and fiscal authority to subnational governments, ending Singhdurbar’s suffocating control,
• Fiscal federalism with teeth: Guarantee provincial revenue autonomy and performance-based funding, and
• Enforced accountability: Implement independent audits of federal spending, as long demanded by the Financial Comptroller’s Office.

Without immediate corrective action, Nepal risks transforming its federal experiment from a beacon of post-conflict hope into yet another case study in constitutional failure. The stranded travelers, the jobless workers, and the millions trapped in this institutional purgatory deserve more than a government that mistakes inertia for governance. The time for reform is now—before the paralysis becomes permanent.

In 2081, Nepal navigated a transformative yet turbulent digital landscape, balancing ambitious technological and governance advancements with persistent challenges in digital rights, privacy, and cybercrime. The country strived to cement its place in the global digital arena while grappling with the complexities of regulating an increasingly connected society.

Ambitious digital vision and infrastructure expansion

The government’s commitment to digital progress was evident in its declaration of 2024–2034 as the ‘IT Decade’, a vision backed by Rs 7.25bn allocated for ICT projects in FY 2081/82. This funding fueled broadband expansion, IT park development, and efforts to create a thriving ICT hub aimed at generating jobs and boosting digital payments and e-commerce. Internet penetration soared to 99.38 percent, a remarkable achievement, though rural areas still faced connectivity gaps, highlighting the ongoing digital divide. Initiatives like integrating national databases and automating public services advanced digital governance, with the Nagarik App, formalized under amendments to the Good Governance Act, enabling seamless access to public services via electronic devices. 

Policy and legislative developments

Significant policy advancements shaped the year. The Social Media Operation, Usage, and Regulation Bill, 2081 tabled in Parliament aimed to regulate social media platforms and to moderate social media content. Likewise, draft Information Technology and Cybersecurity Bill, 2080, aimed to regulate online spaces and enhance cybersecurity was released for public consultation. However, both the bills drew criticism for potentially restricting free speech and privacy. Similarly, the Media Council Bill, 2081, sought to promote self-regulation in online media but raised concerns about its regulating agency’s independence and alignment with federalism. A concept paper on Artificial Intelligence (AI) and the Draft AI Policy, 2081, outlined plans to leverage AI across sectors, emphasizing clear policies and global standards. Regulatory efforts also targeted virtual currencies to curb money laundering, while amendments to the Industrial Enterprises Act recognized startups as distinct entities to foster innovation. The E-Commerce Act, 2081, was finally made into law to regulate online transactions and ensure transparency for consumers and businesses.

The draft E-Governance Blueprint and Draft Digital Nepal Framework 2.0 laid out bold plans to modernize public services, enhance digital infrastructure, and address past challenges like weak coordination and limited technical capacity through phased implementation and skill development. The Council of Ministers provided conceptual approval for drafting the Electronic Good Governance Commission Bill to combat corruption, and the Supreme Court’s ruling to uphold mandatory national identity cards for public service access, despite legal challenges, reinforced the push for centralized digital systems—though it sparked debates over accessibility.

Digital rights and privacy at stake 

Digital rights faced significant hurdles, with freedom of expression under strain. Prosecutions under the Electronic Transactions Act (ETA) targeted individuals for political comments, alleged defamation, or disruption, raising fears of a chilling effect on free speech. Critics argued the ETA is being misused to suppress dissent, a concern echoed in the Press Council Nepal’s expanded scrutiny of YouTube and online media, which sparked debates over regulatory overreach. The judiciary’s actions, such as the Sidhakura contempt case, further intensified scrutiny of media freedom. The lifting of the TikTok ban on 22 Aug 2024, was a victory for digital rights, but the lack of transparency around the decision left questions unanswered. The Ministry of Communication and Information Technology’s Directives on Managing the Use of Social Media, 2080, required platforms like TikTok and Facebook to establish local offices and moderate content, yet only TikTok, Viber, and WeeTok complied. A 30-day ultimatum for social media registration in 2081 marked a shift toward stricter enforcement, with potential bans for non-compliant platforms like Meta and X. Minister for Communications and Information Technology, Prithvi Subba Gurung, warned of shutting down social networks if they failed to register by April 13, 2025, emphasizing the urgency of compliance.

In 2081, Nepal faced significant internet disruption, including a major outage on National ICT Day, May 2, caused by disagreements over RTDF taxation between ISPs and the Ministry of Communications (MoCIT).

Further internet connections were disrupted in various places due to natural calamities, beautification of the city, and floods damaging the power supplies, leading to the shutdown of several base transceiver stations (BTS) and cutting off communication in affected areas.

The Supreme Court’s Sept 2024 ruling against unauthorized data access by Nepal Telecom reaffirmed privacy rights, but international reports like CIVICUS highlighted Nepal’s obstructed civic space, citing media censorship and reprisals against activists.

In a related development, the Department of Transport Management, following an appeal by a law student under the Right to Information Act, rectified its practice of publishing personal data such as citizenship numbers in driving test results. The department admitted this breach of privacy laws and committed to upgrading its software to prevent future violations. 

Rise of mis/disinformation and deepfake materials 

Social media also became a breeding ground for misinformation, deepfakes, and racially motivated attacks, with manipulated videos, false narratives, and unchecked mis/disinformation spreading widely. As Nepal’s digital ecosystem grows, combating false and misleading information, particularly during critical moments like elections or public protests, remains a significant challenge. These threats underscore the need for comprehensive strategies to enhance media literacy, promote responsible digital practices, and introduce effective policies addressing disinformation and digital manipulation.

Surge in cybercrime and systemic vulnerabilities

The year was marred by a cybercrime surge, with the Nepal Police Cyber Bureau recording 19,730 FIRs in FY 2080/81—a tenfold rise from five years earlier—and 13,426 complaints within nine months of 2081/82. Cases spanned financial fraud, phishing scams, social media impersonation, and hacking, with incidents like the theft of Rs 34.2m from F1 Soft’s bank account and data breaches by Khalti employees exposing systemic vulnerabilities. Fraudulent schemes exploiting trusted brands, fake government grants, and illegal crypto transactions targeted vulnerable groups, particularly youth and students. The NRB pushed for stronger KYC procedures, real-time monitoring, and public awareness, but the volume of cases strained resources.

Major cybersecurity and infrastructure threats

In 2081, Nepal faced significant cybersecurity challenges, marked by high-profile incidents such as DDoS attacks on government servers and recurring cyberattacks on local government websites, disrupting essential services. Notable breaches included the hacking of the National Vigilance Center’s website, resulting in the loss of registration data, and a malware attack on the Passport Department, causing delays in passport services. Other incidents exposed vulnerabilities in the teacher personnel records system and Tribhuvan University’s online exam platform. Additionally, over a dozen ministry websites went offline due to negligence in renewing licenses, and funding shortages threatened the stability of key digital infrastructure, such as the Integrated Data Management Center and Disaster Recovery Centre. A particularly alarming breach involved the hacking of Nepal’s public grievance platform, Hello Sarkar, by the Russian hacker group ‘Ghudra’, which sold sensitive citizen data on the dark web. Despite the adoption of a National Cybersecurity Policy in 2080, Nepal’s cybersecurity ranking fell to 100th globally, highlighting the government’s struggles to improve its digital security infrastructure.

In 2081, Nepal’s digital journey was a paradox of progress and peril. Ambitious ICT and e-governance initiatives laid a foundation for a connected future, but rural connectivity gaps, regulatory overreach, and rampant cybercrime demanded urgent action. The tension between digital advancement and democratic freedoms underscored the need for balanced policies that protect rights while fostering innovation. As Nepal advances toward its ‘IT Decade’ goals, the lessons of 2081 emphasize inclusive access, transparent governance, and robust cybersecurity as critical to shaping a resilient digital future.

Presenting their debut exhibition, “What Once Was,” Katyani Rai and Sabita Gyawali explore the profound yet fragile nature of loss. Whether it’s the farewell of a loved one or the slow fading of love itself, their works invite viewers to contemplate the emotional weight of impermanence. Through distinct artistic styles and personal narratives, Rai and Gyawali craft a lasting testament to grief, attachment, and memory—transforming fleeting moments into something enduring.

How do you release the emotions you carry? Would you allow grief to take the shape of a melody? Through “What Once Was,” Rai and Gyawali remind us that art has the power to preserve, reshape, and reimagine loss. In their work, pain finds permanence, and what once felt lost is rediscovered in new and meaningful ways.

Katyani Rai: Etching Emotion into Art

How do you capture emotion in art? For Rai, the answer lies in the meticulous process of etching—a technique that transforms raw feeling into the tangible. Each line carved into the zinc plate is not just an action but a moment of release, an adrenaline-fueled act of creation where grief, love, and longing take on permanent form.

Stepping into “What Once Was,” one is immediately drawn into Rai’s world. Her works are deeply interconnected, seamlessly blending poetry and visual art. In pieces like “Maybe It’s Mercy, Maybe It’s Sin,” she explores the ache of holding on to someone who may never return. Paired with verses that speak to grief’s inevitable passage, her art becomes an intimate dialogue with the viewer:

“Maybe it’s mercy, maybe it’s sin

To keep holding on where we should have been

Maybe the earth just knows more than we do

That grief is a thing that must pass through.

The night takes what the night knows

What the hand can’t hold, the wind will sow.”

This poetic infusion enhances the emotional depth of her pieces, drawing audiences into a space of introspection. She explains, “The line is an inner conflict—perhaps it is ‘mercy’ to keep remembering, to cherish what was, but maybe it is also a ‘sin’, a form of self-punishment to dwell on something that no longer exists. Is the uncertainty kind to ourselves to hold on, or does it only deepen the wound?”

The quiet drift of things left behind evokes the universal experience of waiting, longing, and remembering. In contrast, works like” Forest of Unspoken Memories” and “Where Wild Ones Wait” convey a sense of hesitation—as if Rai is holding back her most intense emotions, while still allowing glimpses of her grief. This hesitation mirrors the common struggle of confronting one’s own feelings—a delicate balance between vulnerability and self-protection.

Her work “Untitled” reflects her belief that “life moves in a circle,” incorporating philosophical reflections on interconnectedness. Ravens, a recurring symbol in her art, appear as mournful figures of remembrance. In pieces such as “For I’m Grass, For I’m Stone, For I’m Dust That Longs for Home,” these birds serve as silent witnesses to loss, reinforcing themes of memory and impermanence. Titles like “New Moon 3:03 am,” “3:03,” and “Where the Blossoms Fell So Did We” suggest moments frozen in time—capturing a sacred stillness.

Meanwhile, in “Where Will You Go If the Stars Won’t Align,” “Towards the Field of Flowers,” “I Call It Mine,” Rai’s longing is palpable. Though lengthy, the title carries irony—an acceptance of fate woven with quiet hope. It subtly hints at the presence of the raven, reinforcing the ideas of solitude and lingering grief.

Her interconnected pieces, “Until I’m No Longer Flesh,” “But a Leaf, a Root, a Fading Shadow of Rain,” and “Tracing Silence,” are rich in symbolism, often incorporating lotus leaves. Rai describes the lotus as a flower that blooms in the most unexpected places—thriving in murky waters yet remaining untouched in its beauty. “Even in the dirtiest places, a diamond exists. And in my heart, I am still searching for it,” she reflects.

Through her work, Rai does not merely depict loss—she carves it, writes it, and transforms it into something permanent. Her piece Heaven Hangs Heavy conveys the experience of self-discovery, illustrating how Rai invites viewers to sit with their emotions, embrace fluctuations, and discover beauty in the most unexpected places.

Sabita Gyawali: The Softness of Memory

How gentle can a memory be? Are all memories light and delicate, or do some carry a quiet weight of longing? While grief is often seen as heavy, Gyawali approaches it differently—through softness, fragility, and the fleeting nature of recollection.

Gyawali captures the short-lived nature of memory through delicate paper and pastels. Her technique of pressing fabric into the medium gives her work a flowing, organic texture—adding a depth that ordinary paper cannot hold. The result is more than a surface; it becomes a metaphor for memory itself: fragile, passing, and deeply personal, slipping through our grasp even as we try to hold on.

Her piece, “Before the Winter Comes,” draws a poetic parallel between the inevitability of change and the migration of birds, reflecting the departures we experience in life. “Traces of Yesterday,” a series of five intricate works featuring pressed flowers, preserves fleeting beauty and offers a quiet meditation on nostalgia and the passage of time. In “Letters to the Unwritten,” Gyawali explores the weight of unspoken words. Handmade envelopes represent the letters never sent, the conversations never had.

“These empty envelopes hold the words I never wrote—and the ones that never reached me,” she shares, expressing the deep yearning and unresolved emotions that linger in silence.

Longing and absence are further explored in “Traces of You in the Wind,” which captures the quiet hope that someone who has gone might still find their way back. Similarly, “Window to Yesterday” consists of smaller works where windows and grill frames serve as gateways—opening up a vista to gaze outward. Much like her oil paintings, these blend sensory and visual memory through incense-burnt cutouts, where scent and sight merge to evoke both nostalgia and release.

Yet not all of Gyawali’s work centers on longing—some delve into identity and emotional entanglement. “Stirred by Your Touch” is meticulously crafted in pressed paper—a blend of fabric and incense-burned materials. This process becomes meditative, reflecting her signature approach of layering while still evoking softness and fragility. The work highlights the struggle of holding onto someone for so long that the boundaries between self and other begin to blur. It speaks to the push and pull of love, loss, and the search for self in the echoes of another’s presence.

Through her delicate yet vivid pieces, Gyawali reminds us that memory is not just something we recall—it is something we carry, something we feel, and sometimes, something we must learn to release.

A dialogue of emotion

Though Gyawali and Rai have distinct artistic styles, both navigate profound emotions through their work. Rai etches her grief into permanence, using the physical act of creation as catharsis, while Gyawali constructs memory through soft, layered textures that express its fleeting, ephemeral nature. One is marked by intensity, the other by delicacy—yet both seek to make sense of love and loss through their chosen mediums.

Rai’s art is raw and bold, allowing grief to take form as if carving sorrow into existence. In contrast, Gyawali’s work embodies the impermanence of memory, preserving delicate traces of what once was. Together, their works create a conversation—a balance between permanence and impermanence, between holding on and letting go.

“What Once Was” explores the deeply personal nature of sorrow, echoing works like Bharati Mukherjee’s “The Management of Grief,” where loss is experienced through both personal and societal lenses. Just as Mukherjee’s protagonist navigates grief in her own way, Rai and Gyawali transform emotion into art—bridging the space between absence and remembrance. In doing so, they do not merely share their grief; they invite us to find reflections of our own.

The High-Level Economic Reform Advisory Commission has identified a declining consumption growth rate and a reduction in investment as the primary reasons for the sluggish economic growth rate. The commission, formed under the leadership of former Finance Secretary Rameshore Khanal, has suggested that immediate policy interventions are necessary to improve the demand side. To achieve high economic growth, it has recommended structural reforms on the supply side to create an investment-friendly environment and reduce production costs to enhance competitiveness of Nepali goods.

According to the commission’s report, reduced credit growth, declining real estate transactions, millions of rupees trapped in cooperatives, delays in government payments, issues in recovering commercial credit, and a crisis in the construction sector have led to reduced consumption and investment. “Delays in balancing certain monetary tools used for relief during the pandemic, insufficient activation of fiscal policy, and import control policies caused the economy to face successive problems. As a result, the economy has experienced further stagnation over the past two fiscal years,” the commission said in its report.

It has recommended reducing barriers and expanding opportunities in sectors critical for economic growth, such as agriculture, forestry, land, mining, water resources, tourism and information technology. To create opportunities in these sectors, the commission has emphasized the need for policy interventions in physical infrastructure development, urban development, energy security, education and skill development, health and research and development.

The commission has urged the government to implement the suggestions provided by the High-Level Public Expenditure Review Commission and the High-Level Tax Reform Committee regarding public expenditure, revenue policy and administration. To create an industrial and business-friendly environment, the commission has proposed establishing a single registration entity where all types of businesses can register, and taking the entire registration process online. It has also suggested making all business registrations free and eliminating the need for renewals.

Likewise, the commission has proposed allowing up to 50 percent foreign investment based on the evaluation of investment proposals. It has suggested that Nepali firms or companies permitted to invest abroad should pursue double taxation avoidance agreements and bilateral investment agreements with approved countries. It has also called on the government to abolish the Department of Revenue Investigation Department and the Revenue Leakage Act, transferring investigations related to foreign exchange misuse to the Department of Money Laundering Investigation.

To make farm subsidies effective, it has urged the government to distribute subsidies to farmers through a single-window system through the local government. Likewise, it has suggested creating a Farmers’ Welfare Fund in collaboration with provincial and local governments to provide subsidized loans.

The commission also said in its report that businesses should not be restricted by setting a maximum profit ceiling. Likewise, it has urged the government to make bank interest rates stable, at least for productive sectors. “Since Nepal’s exchange rate is fixed with the Indian currency, it causes fluctuations in the external sector to impact domestic banking liquidity and lead to volatility in interest rates,” the commission said in its report.

Stating that the lack of collateral is preventing many, especially startups, from accessing bank loans, the commission has suggested that introduction of a personal credit scoring system would facilitate loan disbursements for small businesses.