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The long-standing comradely relationship between KP Sharma Oli and Bidya Devi Bhandari has soured. Soon after Bhandari openly challenged her removal from the post of party chair, the Central Committee of CPN-UML officially decided to bar the former head of state from active party politics.

Although UML leaders have defended the midnight decision, claiming it was made to uphold the sanctity of the presidential office, many within the party and the general public remain unconvinced. While it’s still unclear how this episode will unfold, Bhandari has signaled her intent to stay active in party politics. However, by denying her even an ordinary party membership, the UML has created a barrier for her to engage directly with party leaders and cadres.

Previously, there were assumptions that a fair number of party leaders and cadres might support Bhandari, but the Central Committee meeting told a different story. Only a handful of leaders stood by her, while the overwhelming majority sided with Oli, which is likely due to his current status as Prime Minister. Just two leaders, Surendra Pandey and Yubaraj Gyawali, opposed the party’s decision to bar Bhandari from political involvement.

Bhandari’s limited support within the party’s Central Committee poses a serious challenge to her ability to become politically active or pose a meaningful challenge to Oli, who retains a firm grip on the party. Oli is poised to secure a third consecutive term as party leader, barring any dramatic developments. In Bhandari’s absence, no leader appears willing to contest the party leadership at the upcoming general convention.

Meanwhile, within the Nepali Congress (NC), senior leader Shekhar Koirala has been meeting with both ruling and opposition party leaders, though the reasons remain unclear. Prime Minister Oli, however, reportedly views these meetings as attempts to unseat his government. Seven NC second-rung leaders also held a luncheon at Prakash Man Singh’s residence, but the meeting failed to generate any notable impact within the party.

Koirala has separately met opposition leader Pushpa Kamal Dahal and former President Bhandari. He has grown increasingly vocal in criticizing the government, arguing that UML is attacking the core values of the NC and that the party should withdraw from the coalition. Some speculate that Koirala is positioning himself to become prime minister by dismantling the current coalition. However, he lacks the numbers needed to become the parliamentary party leader. Koirala believes that if he can ascend to the premiership before the party’s general convention, he could influence the party’s internal elections.

Several key bills related to land, education, and the Constitutional Council have become contentious issues among coalition partners. Serious differences persist between NC and UML on these matters, and while they may not immediately threaten the coalition, they are a source of growing friction. Senior leaders from both parties are engaged in ongoing discussions, but efforts to bridge the divide have thus far failed. NC leaders are also pressuring President Ram Chandra Poudel to reject the bill concerning the Constitutional Council.

UML is under public scrutiny for its apparent double standards on the “cooling-off” period in the Civil Service Bill. While some of its National Assembly members support removing this provision, both the NC and the CPN (Maoist Center) are firmly opposed to any compromise. In a previous incident, the bureaucracy altered a draft bill passed by the House of Representatives, prompting the formation of a probe panel to investigate.

Within the Maoist Center, the rift between party chair Dahal and Janardhan Sharma is deepening. Sharma is reportedly trying to form a rival faction within the party. Recently, he publicly remarked that apart from Manmohan Adhikari, all communist leaders have engaged in the accumulation of vast wealth, a comment that has irritated Dahal. While several second-tier leaders are seeking a change in leadership, Dahal remains unwilling to step down.

The Rastriya Prajatantra Party, once in the national spotlight, is now mired in internal disunity. Senior leaders like Dhawal Shumsher Rana and Prakash Chandra Lohani have criticized party chair Rajendra Lingden for alleged bias against party members and cadres. Senior leader Rabindra Mishra, however, remains silent amid the growing intra-party conflict.

This week, media reports suggested that Prime Minister Oli is planning an official visit to New Delhi. Some outlets have speculated on possible dates, but officials have yet to confirm details. Nonetheless, both countries have recently discussed important matters such as mutual legal assistance and an extradition treaty.

The government has declared Madhesh Province a disaster-affected zone due to a prolonged drought that has severely impacted drinking water supplies, irrigation, and agriculture. Climate change is dramatically reshaping life in the region, from drying springs to plummeting rice yields. Locals say they feel increasingly estranged from the very elements that once sustained them. “Neither the rice feels like ours anymore, nor the water,” many say, as parched fields and vanishing water sources force families to walk miles just to collect a single bucket.

Nepal’s economy in the fiscal year 2024/25 exhibited signs of a guarded but meaningful rebound, marked by notable shifts in trade patterns, rising consumption of key commodities, and strong export performance. While criticisms continue to mount regarding the government’s inability to roll out bold economic initiatives, market behavior and trade data present a story that hints at renewed momentum.

One of the most significant indicators of this evolving economic landscape is the overall expansion of Nepal’s international trade. The total trade volume grew by 19.24 percent compared to the previous year, a strong indicator of increased commercial activity despite political and administrative inertia. Imports during this period reached Rs 1.804trn, a 13.25 percent rise from the previous fiscal year’s figure of Rs 1.592trn. Although a double-digit increase in imports would generally raise alarms in an economy known for chronic trade deficits, this year’s data must be read in the context of a simultaneous and historic rise in exports.

Exports for the fiscal year hit a record Rs 277bn, an impressive 81.8 percent surge from Rs 152bn in 2023/24. This steep rise in export volume represents the strongest performance on record and suggests that Nepal’s export capacity is beginning to respond to global market opportunities, logistical improvements, or perhaps increased value-added activity in key sectors. Interestingly, a substantial portion of this export growth is attributable to processed soybean oil, which Nepalese traders import in crude form from third countries and refine for export, primarily to India. This particular trade mechanism, while increasing both import and export volumes, has had the net effect of raising overall trade engagement and foreign exchange earnings.

Petroleum products continue to play an outsized role in Nepal’s import basket, both as a necessity and a source of government revenue. Total petroleum imports in 2024/25 amounted to Rs 274.27bn. Diesel led the chart with 1.47m kiloliters imported, valued at Rs 128bn, an increase of nearly 55,000 kiloliters from the previous year. Petrol followed closely at 746,420 kiloliters worth Rs 64.12bn, and aviation fuel imports rose to 210,012 kiloliters, valued at Rs 18.79bn. LPG gas consumption, another critical indicator of household energy demand, hit 5.55bn kilograms, translating to an import value of Rs 62.58bn.

What makes these figures particularly noteworthy is the inverse relationship between global petroleum prices and domestic consumption. Despite falling prices on the international market, Nepal’s import volume increased substantially, suggesting robust domestic demand. This reliance, while generating significant revenue of Rs 120.57bn in petroleum-related taxes, also underscores the country’s vulnerability to global price fluctuations and its continued dependence on fossil fuel imports.

The import composition further reveals evolving consumption patterns. While diesel remained dominant, an unusual and noteworthy rise was observed in the import of crude soybean oil, which surpassed petrol in value at Rs 108.95bn. These two commodities were the only ones with imports exceeding Rs 100bn, emphasizing their critical role in the current trade structure. Meanwhile, imports of smartphones, now ranked sixth in value, reflect a growing appetite for tech consumption among Nepali consumers.

Month-wise import trends revealed fluctuating demand, with peak imports recorded in the middle of the fiscal year and a decline toward the end. For instance, imports stood at Rs 170bn in mid-May to mid-June but dropped to Rs 160bn in mid-June to mid-July. Part of this decline is attributed to the closure of the Rasuwa customs point, a vital trade gateway with China, due to flooding.

A similar pattern emerges in the automotive sector, which appears to be undergoing a modest but clear revival. The import of electric passenger vehicles increased by 14 percent, reaching 13,578 units valued at Rs 31.76bn. From this, the government collected Rs 19.7bn in revenue. The commercial EV segment witnessed even stronger growth, rising by 73 percent year-over-year with 3,813 units imported. These developments reflect both shifting consumer preferences and the likely impact of government incentives and global supply trends favoring electric mobility.

In the two-wheeler market, long regarded as a bellwether for middle-class consumption, the story is equally optimistic. Imports of motorbikes and scooters rose by 34 percent, with 201,000 units entering the country. The government earned nearly an equivalent amount of Rs 24.73bn in revenue from these imports alone. The rise in two/three-wheeled electric vehicles was also notable, with 29,437 units imported compared to 20,704 units the year before. Even fuel-based passenger cars showed a rise in demand, with 4,978 units imported in 2024/25, up from 4,246 the previous year.

These numbers offer a nuanced understanding of post-pandemic consumer behavior. Rather than a broad-based economic boom, Nepal appears to be experiencing targeted recoveries in segments such as transportation, technology, and household energy, with more modest gains in other sectors. Interestingly, this uneven recovery seems to be occurring largely independent of proactive government economic management. While critics have accused the administration of failing to implement impactful reforms or development programs, the market appears to be finding its footing nonetheless.

Beyond trade and consumption, the real estate market offers another dimension of economic recovery, particularly in high-value segments. Government data shows a spike in transactions involving premium properties in urban centers. Although the total number of property registrations slightly dipped in Asar compared to Jestha (55,524 compared to. 56,010), revenue collection told a different story. The government collected Rs 6.55bn in property transaction taxes in Asar, up by Rs 1.82bn from the Rs 4.72bn collected in Jestha. Compared to last year’s Asar, which generated only Rs 4.61bn from 46,179 transactions, this year’s data clearly indicates growth in the sale of higher-value properties.

This surge in property deals reflects rising investor confidence, likely driven by factors such as stable remittance inflows, limited alternative investment avenues, and increasing urban migration. It also highlights the potential of the real estate sector to act as a stabilizing force in Nepal’s economy, particularly in the absence of sustained industrial output or manufacturing-led growth.

All this growth occurred in a context where policy intervention was largely missing and government initiatives failed to inspire widespread confidence. The resilience of the market and the adaptability of consumers and businesses, rather than institutional action, have been the primary drivers of this recovery phase.

However, this growth comes with caveats. The rising dependency on petroleum imports, the fragile export base reliant on limited product categories, and infrastructure bottlenecks highlight the structural limitations that remain. To truly achieve sustained economic momentum, Nepal’s policymakers must move beyond passive observation and engage in strategic planning that strengthens domestic production, diversifies the export base, and builds climate-resilient trade infrastructure.

The CPN-UML has stated that the issue of former President Bidya Devi Bhandari’s party membership renewal has become ‘automatically inactive’. Speaking at a press conference held at the party’s central office in Chyasal on Wednesday, UML General Secretary Shankar Pokharel clarified that as per the party statute, only the Central Committee can decide on membership renewal. Since the committee has established that there is no requirement for Bhandari to return to active politics, the question of membership does not arise.

“We decided that the ex-president should not return to politics. So, the issue of renewing her membership in her party is no longer relevant. We have shelved it,” Pokharel said. He said that Bhandari had submitted her membership renewal application and fee a year ago, but the matter was not disclosed but was kept secret until the internal debate took place. It became known only after Bhandari herself disclosed it.

“Since her honored previous position, it was viewed as a delicate issue. We did not wish to expose it without due deliberation. But as she publicly disclosed it, the party was forced to react,” Pokharel explained.

The UML has also contended that it is against the constitution for an ex-head of state to resume partisan politics. The party contends that Constitution of Nepal 2015 does not envision the active political stances taken by a ceremonial head of state, a symbol of national unity and neutrality, after retirement. “The Nepali democratic system envisions the President as a constitutional, not an executive head. So, returning to party politics after serving as President cheapens the office,” wrote a UML release.

The statement pointed out that Bhandari is a highly respected figure in Nepali politics and had behaved with dignity—both as a party member and as the President. She was even honored during UML’s Diamond Jubilee as a ‘Pride of the Republic’. But, citing constitutional values and precedence, the party concluded that allowing an ex-president to engage in partisan politics would cast doubt on their previous decisions and impartiality.

At the same time, General Secretary Pokharel claimed that the UML has not excluded anyone from running for leadership in the coming party convention. In reply to the rumors that recent amendments of the statutes—removing two-term and age-70 limitations—were made so as to provide KP Sharma Oli with uncontested leadership, Pokharel claimed the amendments were debated from an institutional point of view. “Anyone who fulfills the party’s requirements can run.” “The offer is open and democratic,” he said, adding that most members of the Central Committee consider Oli to be the most suitable to take the party through the next general elections.

The party’s ninth Central Committee meeting had concluded late Tuesday night after passing eight resolutions. The debate over Bhandari’s political role took up much of the meeting, and a minimal dissent was voiced. However, Oli concluded the meeting by announcing that Bhandari’s party membership issue had not been endorsed. The UML leaders warned that allowing a former president to return to party politics could set a negative precedent, potentially politicizing the constitutional office of the President.

Nepal, a landlocked nation characterized by its rugged mountainous terrain, faces significant challenges in maintaining reliable transportation networks, particularly during the monsoon season. The annual monsoon, typically spanning June to September, brings torrential rainfall, landslides, and flooding, which severely disrupt road connectivity across the country. Major highways, such as the Tribhuvan, Prithvi, and Araniko, frequently become impassable, isolating communities and disrupting the supply of essential goods. The Hetauda-Kathmandu Ropeway, a 42-km cargo transport system operational from 1964 to 1994, offers a proven solution to these challenges. Reviving this ropeway is imperative to ensure resilient, cost-effective, and environmentally sustainable transportation in Nepal, especially during the monsoon season.

Monsoon disruptions and highway vulnerabilities

Nepal’s highways are critical arteries for trade, tourism, and daily commuting, yet they are highly vulnerable to monsoon-related disasters. In Sept 2024, torrential rainfall—the heaviest since 1970—caused widespread flooding and landslides, blocking 37 highways and damaging 25 bridges across the country. The Bagmati River in Kathmandu rose two meters above its safe level, flooding the capital and disrupting key road networks. The Narayanghat-Mugling section of the Prithvi Highway, a vital link between Kathmandu and the Terai region, is frequently obstructed by landslides during the monsoon, delaying commerce and impacting the economy. Similarly, the Araniko Highway, connecting Nepal to China, and the Pasang Lhamu Highway have faced closures due to floods and landslides, exacerbating trade disruptions.  These disruptions have significant economic and social consequences. In 2024, floods displaced thousands, destroyed infrastructure, and caused over 224 deaths, with 37 in Kathmandu alone.

Historical significance of Hetauda-Kathmandu ropeway

The Hetauda-Kathmandu Ropeway, originally built in 1922 by Chandra Shumsher Rana as a 22-km cargo system from Dhorsing to Kathmandu, was extended to 42 km in 1964 with support from the United States Agency for International Development (USAID). During its peak, it operated for 10 hours daily, transporting 220 tonnes of goods—equivalent to 24 truckloads—at half the cost of road transport. The ropeway proved its utility during crises, such as the 1993 floods and the 1988-89 Indian blockade, when highways were impassable. However, institutional mismanagement, underutilization, and a policy shift prioritizing roads led to its closure in 1994. Today, its rusting towers stand as a reminder of a missed opportunity to leverage Nepal’s topography for sustainable transport.

Why revive Hetauda-Kathmandu ropeway?

Reviving the Hetauda-Kathmandu Ropeway offers multiple benefits, particularly in addressing monsoon-related transportation challenges.

• Resilience against monsoon disruptions

Unlike highways, ropeways are minimally affected by floods and landslides. Requiring only towers and stations, they occupy little ground space and avoid the need for extensive road construction in landslide-prone areas. The 1993 floods demonstrated the ropeway’s ability to maintain supply chains when highways failed. Reviving the ropeway would ensure year-round connectivity, especially during the monsoon, safeguarding the supply of essential goods to Kathmandu.

• Cost-effectiveness

Studies indicate that building ropeways is six times cheaper than constructing roads in Nepal’s hilly terrain. The Hetauda-Kathmandu Ropeway cost half as much as the Tribhuvan Highway to build, and its operational costs were significantly lower, with goods transported at Rs 346.80 per ton compared to Rs 480 by trucks. Additionally, gravity goods ropeways (GGRs), which use the terrain’s natural undulation, cost approximately Rs 2 million per kilometer to build and can reduce transportation costs by 70 percent, as shown by Practical Action Nepal’s projects.

• Environmental sustainability

Nepal’s road-building boom has caused significant environmental damage, including deforestation, soil erosion, and habitat loss. Unplanned road construction exacerbates landslides, as seen in the Narayanghat-Mugling section, where gully erosion and unengineered slopes have triggered disasters. Ropeways, by contrast, have a minimal environmental footprint, requiring less land alteration and preserving fragile ecosystems. With Nepal’s growing hydropower capacity, electrically operated ropeways align with the country’s clean energy goals, reducing reliance on fossil fuel-based transport.

• Economic and social benefits

The ropeway can boost rural economies by connecting remote settlements to markets. Practical Action Nepal’s gravity ropeways have doubled cash crop production within two years and saved over 100 person-days of travel time per household annually. Reviving the Hetauda-Kathmandu Ropeway could similarly enhance trade from the Terai to Kathmandu, particularly for goods from the Birgunj dry port to the Chobhar dry port. This would reduce economic losses from highway disruptions during festivals like Dashain and Tihar, when demand for goods peaks.

• Alignment with modern infrastructure needs

The Investment Board Nepal (IBN) has been studying the revival of the Hetauda-Kathmandu Ropeway since 2017 to transport goods from Birgunj to Chobhar. With the Chobhar inland container depot (ICD) under construction as part of the Nepal-India Regional Trade and Transport Project, the ropeway could serve as a vital link, keeping cargo vehicles out of Kathmandu and reducing urban congestion. A modernized ropeway could also integrate with Nepal’s growing tourism sector, complementing cable car projects like those in Chandragiri and Manakamana.

Challenges and solutions

Reviving the Hetauda-Kathmandu Ropeway involves several challenges. The high initial investment, need for technical upgrades, and bureaucratic delays pose significant obstacles. The original infrastructure, unused for over two decades, is irreparable, requiring entirely new construction. To address these issues, public-private partnerships (PPPs) can be utilized, drawing on private sector expertise as demonstrated by the successful Manakamana Cable Car project. The Ninth Five-Year Plan’s emphasis on private sector involvement in ropeways provides a replicable model. Additionally, international support from organizations like the World Bank, which funds the Chobhar Inland Container Depot, or technical assistance from countries like Switzerland, renowned for ropeway expertise, can help overcome financial and technical barriers. Furthermore, conducting comprehensive geological and environmental impact assessments, as advised for ropeways in the fragile Himalayan ecosystem, will ensure sustainable development and reduce risks, such as those observed during the 1999 monsoon flooding caused by a poorly planned ropeway.

Policy recommendations

To revive the Hetauda-Kathmandu Ropeway, the government should implement several policy measures. First, transportation policy should prioritize ropeways over road-centric approaches, as the World Bank’s 1976 Nepal Country Report noted the high cost of road construction in mountainous terrain. Second, the Investment Board Nepal (IBN) should accelerate technical feasibility studies to evaluate the ropeway’s suitability for heavy cargo transport, ensuring integration with the Chobhar Inland Container Depot (ICD) project. Third, private sector participation should be encouraged through tax incentives and streamlined approval processes to support ropeway development. Fourth, Nepal’s hydropower capacity should be leveraged to power ropeways, lowering operational costs and environmental impact. Finally, public awareness campaigns should highlight the ropeway’s resilience, cost-effectiveness, and environmental benefits to promote its adoption.

Conclusion

The Hetauda-Kathmandu Ropeway, once a lifeline for Nepal’s capital, holds immense potential to address the country’s transportation challenges during the monsoon season. Its revival would ensure resilient supply chains, reduce economic losses, and minimize environmental damage compared to road-based transport. By learning from past successes, such as the ropeway’s role in the 1993 floods, and addressing modern infrastructure needs, Nepal can build a sustainable transport system that complements its rugged topography. With coordinated efforts from the government, private sector, and international partners, the revival of the Hetauda-Kathmandu Ropeway can pave the way for a more connected and resilient Nepal.