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Buckwheat, known as ‘phapar’ in Nepal, is a humble crop with extraordinary potential. A pseudo-cereal and naturally gluten-free, buckwheat is packed with nutrients and thrives in Nepal’s high-altitude, cool climates. Its adaptability and health benefits have made it a staple in Nepal’s hilly regions, where it sustains communities like the Gurkhas, Sherpas, and Buddhist monks.

This versatile crop holds the promise of becoming a global superfood while preserving Nepal’s rich culinary heritage. But the problem is, as Bishnu Bilas Adhikari, an agriculture scientist, writes in his paper, “The demand of buckwheat in Nepal is increasing annually due to its multiple uses, which is not fulfilled from the Nepalis production. Buckwheat is imported from different countries including India, China, USA annually.” 

Despite its historic significance, my appreciation for buckwheat grew after a trip to Tokyo in 2014. At a small soba noodle shop, I savored a cold soba noodle salad prepared by an elderly chef. This experience highlighted the depth of buckwheat’s flavor and versatility. Back in Nepal, my encounter with ‘phapar ko dhido’ at a roadside eatery in Chitwan reaffirmed its culinary potential. The dish, similar to polenta, was served with local chicken, ghee, and a variety of accompaniments, showcasing how buckwheat can be the star of both traditional and modern plates.

The dhido was served as part of a traditional thali, accompanied by an array of local and seasonal vegetables, kalo daal (black lentils), stone-ground chutney, fermented radish pickle, crispy potato straw, gundruk ko achar (fermented leafy greens), and more. Each element of this meal complemented the phapar ko dhido, creating a symphony of flavors that showcased the depth and versatility of buckwheat.

This experience opened my eyes to the potential of phapar as a culinary hero. A more recent experience at Siddhartha Café introduced me to buckwheat momo—delicate dumplings with a nutty flavor. This innovative take on a beloved Nepali dish demonstrated how phapar could elevate gourmet cuisine while maintaining its roots. Siddhartha Hospitality Group, a pioneer in Nepali cuisine, presented buckwheat momo with such skill that I became an even bigger fan. The phapar momo, delicate yet packed with flavor, showed how this humble crop could be elevated to gourmet status.

Buckwheat is a sustainable crop that requires minimal water and grows in poor soil, making it ideal for Nepal’s rugged terrain. As the world embraces sustainable and health-conscious foods, buckwheat’s low environmental impact positions it as a key player in global agriculture. Nepal can market buckwheat as a Himalayan superfood emphasizing its connection to the Gurkhas, Sherpas, and Buddhist monks, who symbolize strength, resilience, and simplicity.

The versatility of buckwheat opens doors for creative culinary applications. We can incorporate buckwheat into dishes like soba noodles, pancakes, or Nepali-inspired momo and dhido. Additionally, we could also tap into the growing demand for gluten-free alternatives by promoting buckwheat-based breads, noodles, and snacks and highlight its low water usage and adaptability to appeal to eco-conscious consumers.

Phapar’s nutty, earthy taste pairs beautifully with Nepali fillings such as spiced greens or curried meat. Serve buckwheat momo with tangy tomato achar flavored with timur (Sichuan pepper) and mustard oil for an authentic experience.

By exploring its culinary potential and health benefits, buckwheat can reconnect younger generations to their heritage while attracting global food enthusiasts. With its rich history and adaptability, phapar is poised to become a celebrated superfood, embodying the resilience of Nepal’s people and landscapes.

With proper branding, Nepal can position buckwheat as a premium export. By sharing recipes and introducing phapar to global markets, Nepal can preserve its culinary traditions while reaching new audiences. But for that, we need to increase the production of Buckwheat. As Agriculture scientist Adhikari writes in his paper, “In case of high hills like Mustang, Manang, Dolpa, Mugu, Solukhumbu etc. where buckwheat is a major summer crop, there is still potential to increase its production and productivity.”

The author is a UK-based R&D chef

Nepal saw both supply and demand side effects during the Covid-19 pandemic. Following that event, the Russian-Ukrainian war, which caused several political upheavals worldwide, in addition to domestic political instability in Nepal, prevented the economy from recovering. Nevertheless, tourism, IT and hydropower sectors have exhibited some positive trends that are likely to stimulate economic recovery. 

An economic model where revenue generation is based on customs duties and remittances has been found to be unsustainable yet contributing to the Nepali economy substantially. Therefore, new economic measures have become imperative. There is a growing debate of a new economic model in Nepal known as Structural Reforms 2.0. The previous reforms—Structural Reforms 1.0—liberalized the national economy, opening space for private sector development. Sectors like banking, aviation, and services performed relatively well and generated jobs. However, with a rising labor force (around 500,000 entrants per year), the private sector developed during 1.0 is no longer sufficient to meet a growing job demand, highlighting the urgent need for Structural Reforms 2.0.

Macroeconomics

Realizing the projections made, most of the growth in real GDP growth is anticipated to come from the services sector, which is expected to grow from two percent in 2023 to 3.9 percent in 2024. Within this sector, tourists’ arrivals have risen by an astonishing 30.7 percent aiding sectors such as accommodation, culinary services and transport, signifying the return of normal economic activities. Paddy production also increased by 4.3 percent, while hydropower production advanced significantly with an addition of more than 450 MW. 

The highest-ever foreign exchange reserves of $13.64bn were a result of record breaking remittance inflows of $5.52bn in FY 2023-2024. Private consumption, which makes up over 80 percent of GDP, surged by 1.1 percent from 0.7 percent the year before due to this spike in remittances. Supported by concessional external borrowing and stable domestic debt levels, public debt slightly declined to 42.7 percent of GDP. 

Consumer price inflation, on a year-on-year basis, dropped to 3.57 percent by mid-July 2024, down from 7.44 percent the previous year. The World Bank projects inflation will decrease to 6 percent in 2025, down from 6.8 percent in 2024, while the Asian Development Bank (ADB) forecasts a rise in inflation to six percent in 2025, up from 5.5 percent in 2024. The inflationary trend is driven by rising vegetable prices, India’s export bans on essential commodities like wheat and rice, global energy price hikes impacting transportation costs, and increasing housing and utility expenses.

Way forward

As we have already identified, three key sectors in Nepal (in line with Structural Reforms 2.0) are currently contributing significantly to the economy: hydropower, tourism and IT. We need solid strategies to drive these sectors forward. To enhance the private sector’s contribution to electricity generation and the export of energy to India and Bangladesh, we must first address land acquisition issues promptly. One of the recurring challenges is securing land for hydropower development. The anticipated amount of land often turns out to be much higher when we engage with local communities, largely influenced by local political leaders and other influential figures. Delays in acquiring land damage Nepal’s reputation in the global investment community, making potential investors reluctant to engage. 

Additionally, when exporting electricity to India—especially in real-time trading—we must be fully prepared to manage potential obstacles. For example, recent Sept 2024 flash floods damaged several hydropower sites, which hindered our ability to export electricity. Consequently, Indian buyers demanded compensation under existing agreements. This situation highlighted the need for regular safety audits of hydropower sites to mitigate climate-induced risks. 

In tourism, one of the most frequent complaints is our limited connectivity to the world. The national flag carrier; Nepal Airlines, is underperforming, and we remain blacklisted by the European Union due to weak safety audits, outdated pilot training and regulatory shortcomings. The European Civil Aviation Authority has even recommended that the Civil Aviation Authority of Nepal (CAAN) be split into two separate entities—one for regulatory functions and another for operations. Having both responsibilities under a single entity creates conflicts of interest, compromising the growth and safety of our aviation industry. Therefore, we must prioritize enhancing direct connectivity to European cities and separating the CAAN’s functions for improved oversight and development. 

In the IT sector, the government needs to adopt a more flexible approach to attracting American and European IT companies. Instead of acting as a stringent regulator, the government should serve as a facilitator. A recent case where the government sued Cotiviti for allegedly evading capital gains tax has created a negative impression on potential investors. As an alternative, the government could allow companies to reinvest the amount owed in capital gains tax into job creation, which would benefit the economy through VAT and income taxes. Rather than demanding large sums upfront, this circular model of reinvestment could help generate wealth while maintaining government revenue through other channels. 

At the same time, Nepal Rastra Bank should consider opening avenues for Bitcoin mining, a growing business model in the global market. Bitcoin mining requires significant energy, and placing Bitcoin mining stations near hydropower plants could create economic opportunities for the hydropower sector, utilizing energy right at their doorstep. Allowing PayPal to function in Nepal would also be a positive step toward advancing the IT sector in the country. 

We are harnessing energy through hydropower, a renewable resource that contributes to a net-zero world. In the light of this, applying for grants from the Green Climate Fund to implement tech-related projects focused on net-zero, green, or gig economies should be considered. Additionally, the development of equipment for carbon trading measurement by our IT professionals could economically benefit the country while positioning us as a forward thinking nation in the fight against climate change. 

Additionally, the government-led initiative for startup funding should be implemented effectively. The distribution of funds should be based on meritocracy, with concrete business plans that demonstrate good returns, sustainability and long-term viability. Funds should not be allocated based on political alignment or favoritism toward certain individuals or party cadres. In Nepal, there is a growing complaint about the politicization of business, where those who favor political parties receive benefits. This practice must be stopped. 

The plans mentioned above are just starting points and suggestions. The primary focus of Nepal’s economic policy should be job creation, and these three sectors—hydropower, tourism, and IT—are performing relatively well. Therefore, flexibility should be extended to individuals and companies investing in Nepal, rather than portraying them as ‘foreign agents’ who have come to Nepal with an intention to undermine the country’s territorial integrity. 

Furthermore, the legacy of a socialism-oriented economy, even reflected in our constitution’s preamble, needs to be reconsidered. Socialism can only be sustainable when there is a broad private sector base capable of supporting those in need. Hostility toward the private sector or specific business communities is not the solution. It’s time to think critically.

Bhoj Bahadur Tamang, 33, is known as a young agricultural entrepreneur in Machhapuchhre-4, Lahanchowk, Kaski. He graduated with a first division in management but couldn’t continue his education due to family issues. Later, he underwent hotel training and started working as a waiter, but he felt the urge to do something on his own. With help from friends and family, he ran a restaurant at Pokhara Engineering Campus.

However, he didn’t find happiness there either. He then went to Kuwait to work as a waiter. After 10 months, he returned to Nepal, realizing that if he could work so hard abroad, he could do better in his own country. At that time, his son-in-law was cultivating vegetables in tunnels in the village, which inspired him to try commercial farming. He initially rented land in Ghalegaun with his sister and started cultivating vegetables in eight tunnels.

“The villagers were angry, saying that if I farmed like this, none of the young people here would go abroad to earn a living,” said Bhoj Bahadur. “The opposition from locals only fueled my determination. So, I added 15 more tunnels.” However, the locals released buffaloes into the tunnels, destroying his crops. Fearing further sabotage, he decided to relocate his farming operations.

He then built 23 tunnels in a nearby settlement. Around this time, he won a lottery for the Israeli government’s “Learn and Earn” program, which proved to be a turning point in his life. The 11-month training taught him about plants, agricultural systems, technology, and entrepreneurship. Upon his return to Nepal, he began farming around his own house in Lahanchowk.

While many people from hilly areas moved to the valley, he rented land from others and engaged in integrated farming on about 104 ropanis (5.4 hectares) of land, of which only seven ropanis are his own.

Tamang produces grass for goat farming on 60 percent of his rural organic agriculture and livestock farm, with the remaining 40 percent dedicated to vegetables, including off-season varieties that fetch good prices. After returning from Israel, he also completed the Agricultural Technician (JTA) course through an 18-month program at CTEVT. Out of 100 students, he was the only one to complete the course.

Despite challenges like water, electricity, and transportation, he has successfully established his agricultural business. He credits the Lahanchok Small Farmers Agricultural Cooperative, under the Small Farmers Development Microfinance Institution, for helping him secure a Rs 3.2m loan. This loan, combined with his own capital, allowed him to expand his business. From June to November, he sells vegetables by hiring workers, typically selling 2,000 to 3,000 kg of vegetables daily. This year, he also sold 50 goats and still has 58 remaining. He employs four people regularly and up to 15-20 during peak seasons. He says his annual profit is Rs 1.8m. OGT students also come to his farm for training.

In recognition of his achievements, the province awarded him the title of Best Farmer in 2023. His wife, Shanti Bhattarai, has been by his side in all his successes. They fell in love while he was taking agricultural training in Israel and later had an inter-caste marriage.

Similarly, 62-year-old Pipla Bhandari faced difficulties in traditional rice farming, particularly with straw rotting. Five years ago, she decided to switch to fish farming. Having started 15 years ago, she has successfully turned it into a commercial venture in Madi Municipality-4, Chitwan. Initially, her sons dug the ponds, but they abandoned the project. Undeterred, Pipla and her 70-year-old husband, Kulprasad Bhandari, took over the project.

Just five days after her mother’s death, they resumed their work and formed a group to secure a loan from the cooperative to dig fish ponds. With a rural enterprise loan of Rs 5m, she expanded her fish farming business. From 31 kathas of land, she now operates on 11 bighas, with 12 ponds. The ponds can accommodate up to 350 large fish and 500 smaller ones in each katha.

Because the ponds have a natural water supply, she faces no water shortage, making her business easier to manage. She currently provides employment to three people on her fish farm, where she raises species such as Labeo rohita, Cirrhinus mrigala, mrigal carp, Bigat, and Grass.

In the same way, 32-year-old Birendra Thapa Magar from Kaski Madi Rural Municipality-5 Madibensi is a passionate farmer. After completing class 12, he began bee farming and expanded his business to include a variety of agricultural activities. He operates a multi-purpose agricultural farm in Bangurpalan, about 12 km from Pokhara.

While many of his friends went abroad, Magar chose to build his future in Nepal. Initially investing Rs 60,000 to raise two pigs, the income was enough to support his family of five. He expanded his business by raising more pigs and investing further in the same land.

He became a member of the Sana Kisan Agricultural Cooperative, following in his father’s footsteps. By mortgaging his land, he took a rural enterprise loan of Rs 1.5m to expand his business. “I spent Rs 1.3m on infrastructure, and despite the lockdown, I continued working because I couldn’t give up,” he says. He now raises 51 pigs and sells the meat in the Pokhara market at Rs 580-600 per kg.

From the income, he built five vegetable tunnels and paid off Rs 1.2m of his loan, leaving only Rs 300,000 to pay off. “The subsidized loan made it easier. Without it, we would have had to pay 16 percent interest from others,” he explains. Magar hopes to further expand his business with additional loans in the future.

As the only son in his family, he values the ability to stay in Nepal and support his parents while earning income from his agricultural enterprise. “My friends now admire my hard work and want to follow my example,” he adds. He encourages other young people to stay in Nepal, as they can earn more than abroad.

Chandra Bahadur Shahi, after many years of working in the Gulf countries, decided to invest in agriculture upon returning to Nepal. He used the money he earned abroad to buy real estate, but it wasn’t enough to start his business. However, with his wife Anita being a cooperative member, he secured a loan from the cooperative and also received a concessional loan through the Asian Development Bank’s Rural Agricultural Enterprise Project.

Chandra Bahadur now owns three cows and seven buffaloes, selling 50 liters of milk daily. He earns over Rs 170,000 a month from milk sales, employing one person. Anita says, “From agriculture, we have food for our family, and we don’t have to look elsewhere for our children’s education. We are content.” Chandra Bahadur adds, “It’s better to be my own boss here than work for someone abroad.”

The rural enterprise financial project aims to transform subsistence farming into commercial agriculture, reduce poverty, empower women, and teach farmers to develop business plans. More than 2,000 people across the country have benefited from enterprise loans at subsidized interest rates.

Launched in 2019, the project, supported by ADB, aims to disburse Rs 6.126bn over five years. By 2024, Rs 4.32bn had been distributed, although the goal was delayed due to the pandemic. The deadline for completing the project has been extended to 2026.

Navraj Simkhada, Deputy Chief Executive Officer of Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd., notes that 2,008 personal and institutional loans have been disbursed across 550 municipalities. A total of Rs 3.86bn in personal enterprise loans has been provided to 1,970 individuals, and Rs 46.6m in institutional loans to 38 entities.

The Ministry of Foreign Affairs has unveiled the much-anticipated Belt and Road Initiative (BRI) Cooperation Framework between Nepal and China, which has identified 10 projects but leaves the investment modality ambiguous. A closer study of the document indicates that implementation remains an uphill task.

The investment modality for the BRI projects continues to be one of the most disputed and ambiguous issues. The Nepali Congress (NC) has consistently held its position that it will accept only projects built through grants, while the CPN-UML is open to taking loans. Regarding the investment modality, the document mentions that “the two sides will work to ensure technical support and aid financing modalities that suit the needs of the two sides and the requirements for sovereign-initiated projects.”

The document further states that the two sides will conduct an objective analysis of the technical, financial, commercial, and economic feasibility of the projects and ensure value for money for the prioritized initiatives. It also allows for seeking international financial support to finance BRI projects, stating, “The two sides will continue to call upon international multilateral financial development institutions or mechanisms to provide more financial support for promoting connectivity and development.”

As per the agreement, Nepal will welcome and facilitate the establishment of branches of Chinese banks and financial institutions. The two sides will work to expand the use of national currencies in bilateral trade and investment according to practical situations. The framework also highlights elevating bilateral relations to a strategic partnership of cooperation, a vision articulated during Chinese President Xi Jinping’s visit to Nepal in 2019.

For implementation, China has designated the National Development and Reform Commission, together with the ministries of foreign affairs and commerce, to take the lead. Nepal, in turn, has designated its ministries of foreign affairs and finance. These entities will coordinate bilateral cooperation under the framework.

The document makes it clear that the framework does not constitute an international treaty and thus does not create rights or obligations under international law. It is subject to each country’s national laws, regulations, and policies governing specific projects. This provision means that, like the United States’ Millennium Challenge Corporation (MCC), the BRI framework does not require parliamentary approval.

The document also clarifies that project cooperation implemented under this framework does not prevent either side from engaging in similar cooperation with other countries or mechanisms. Disputes regarding the framework will be resolved through consultations and negotiations between the two sides.

The framework came into effect on the date of its signing and will remain valid for three years, with automatic extensions for subsequent three years, unless either party provides a written notice of termination three months in advance. Importantly, the termination of the framework will not affect any ongoing cooperation projects. Recently, China has sought to bring all bilateral cooperation under this framework, but even if it is terminated, ongoing projects will not be affected.

Under the BRI, the document lists 10 infrastructure and urban development projects. These include the Tokha-Chhahare Tunnel, which is of strategic importance for Nepal-China trade and aims to reduce travel time, improve road safety, and support economic growth. A letter of exchange for the project feasibility study has already been agreed upon by both sides. Another significant project is the Hilsa-Simikot Corridor, one of eight North-South corridors aimed at enhancing connectivity between Nepal and China. A letter of exchange for the feasibility study of upgrading the Hilsa-Simikot section has also been signed.

The much-discussed Nepal-China cross-border railway project is expected to traverse Nepal’s Rasuwa district, offering a direct link between the two countries and enhancing bilateral connectivity. The agreement states that after the completion of the feasibility study, the two sides will work to build the China-Nepal cross-border railway.

Other projects include Amargadhi City Hall in Dadeldhura, the home constituency of NC President Sher Bahadur Deuba. The 220 kV cross-border power transmission line is another prioritized project, although discussions on its implementation are ongoing. Additional initiatives include Madan Bhandari University of Science and Technology, Kathmandu Scientific Center and Science Museum, China-Nepal Friendship Industrial Park in Jhapa, and Jhapa Sports and Athletic Complex, located in Prime Minister KP Sharma Oli’s constituency.

The BRI framework has become a tool for political parties, particularly the communists, to advance their agendas, but implementation may face roadblocks due to internal and external factors. Although top politicians from the ruling coalition are attempting to downplay differences between the NC and UML, the two ruling parties are not aligned. UML leaders, including Prime Minister Oli, have stated that BRI involves both grants and loans, while NC leaders remain firmly committed to a grants-only approach.

A major challenge for the framework’s implementation lies in the NC’s stance, as the party is likely to remain a dominant force in Nepal’s politics, whether in power or opposition. While NC President Deuba and his ministers have supported the BRI framework to maintain coalition unity, the party’s position is expected to harden if it leads the government in the future. This makes forging a national consensus on BRI project execution extremely difficult.

Even among communist parties, which tend to speak positively about BRI to please China and their voter base, substantive action on the initiative has been limited. For example, Pushpa Kamal Dahal, chairman of the CPN (Maoist Center), has often praised BRI, but made little effort to advance it during his tenure as prime minister. Bureaucratic resistance further complicates matters. The Finance Ministry, in particular, has historically opposed taking loans for BRI projects due to concerns over economic viability and repayment capacity. Recent corruption scandals have also made bureaucrats wary of projects perceived as serving political interests rather than national priorities.

Nepal’s geopolitical realities and economic constraints pose additional challenges. India, for instance, has expressed reservations about Nepal’s participation in BRI, citing sovereignty concerns, and has advised Nepal to prioritize transparency and safeguard its independence. These geopolitical factors, combined with Nepal’s already significant debt burden, have slowed BRI progress over the past decade and will likely continue to do so.

The selection of projects itself raises questions about their alignment with BRI’s objectives of fostering transformative infrastructure and economic integration. For example, the proposed cross-border railway is a highly ambitious project that Nepal is not financially equipped to undertake, even on a grant basis. Its economic viability is questionable, as is the feasibility of other projects, such as tunnels and industrial parks, that do not align with BRI’s stated goal of improving people’s livelihoods. Securing funding for such initiatives remains a significant challenge.

The NC had decided to accept grants while rejecting loans before the BRI framework was signed during Prime Minister Oli’s visit to China. The party presented this position during internal discussions, and the Oli-led government aligned its proposal accordingly. However, concerns have arisen about “aid financing” being prioritized over grant financing in the framework.

The NC’s position remains that only projects funded through grants should proceed. The party argues that conditional loans, whether from China or other countries, are not in Nepal’s interest, given the country’s poor track record of generating returns from such projects. The experience of the Pokhara International Airport, which has become a financial burden due to its inability to deliver returns, underscores this point.

The government has conveyed Nepal’s preference for grants to Chinese leaders, and officials are optimistic that China will honor this stance in upcoming agreements. The Nepali side hopes that grant commitments will be implemented and that negotiations for the listed projects will proceed smoothly. Technical cooperation and industrial investments are also encouraged, as they have the potential to boost employment and create mutual benefits.

Prime Minister Oli, upon returning from China, reiterated that Nepal will prioritize grants over loans under BRI. The Foreign Ministry has also conveyed a similar message. While discussions around the BRI framework continue, its successful implementation will depend on navigating political divisions, ensuring transparency, and securing economically viable projects.