10 challenges that need urgent attention
By all accounts, the country is not on the right path. Nepal is facing a multitude of challenges that require immediate and concerted efforts to address. From agriculture and corruption to climate change and political instability, the issues are deeply interconnected. Without urgent action, the country risks further decline, with long-term consequences for its economy, society, and democracy. To support my argument, I have identified the 10 major problems Nepal is facing today.
Agriculture
I do not want to rely on government statistics, but based on my visits to Karnali, Sudurpashchim and areas surrounding the Kathmandu valley, I can say that Nepal’s agricultural sector is witnessing an alarming decline, with decreasing productivity. On one hand, there is a lack of youth willing to work in agriculture; on the other, a small group of local politicians and government officials are hijacking government subsidies, sidelining genuine farmers. One must be an active member of a political party to receive fertilizer and seed subsidies. Additionally, some people are forging fake agricultural documents to siphon funds that never reach the farmers. Market access for local farmers remains a major issue. Fertile agricultural lands are dangerously becoming barren, and their visible impact will be evident within the next 10 years.
Corruption
For a long time, everyone has been saying that corruption is everywhere, so this issue may seem redundant. However, believe me, it has reached an alarming level, especially at the local level. Corruption has severely compromised the quality of infrastructure projects. There is a dangerous nexus between politicians, government officials and contractors. For instance, I have personally witnessed cases where less than 30 percent of the allocated budget is actually spent on infrastructure projects. Corruption exists even in small health posts—people do not receive the free government-provided medicines because they are diverted to private pharmacies for profit. Corruption has permeated every level of budget allocation and project implementation.
Economy
Government indicators may suggest a gradual economic recovery, as it is also a necessity for the government to manipulate economic data to show progress. For example, the current government has claimed improvements compared to the previous administration. However, the overall sentiment in society clearly indicates that the economy is struggling. Business owners are under severe stress. Visit any small shop, and you will hear about the difficulties they face. People are hesitant to start new businesses due to high loan risks. Even top businesspeople are gradually losing confidence in the national economy. Whether you talk to a small tea shop owner or a leading business figure, optimism is hard to find.
Climate change
Again, this may not sound like a new issue because everyone is talking about it, but Nepal is facing a severe crisis due to climate change. Unfortunately, for our politicians, it is not a matter of urgency. But don’t just blame them—even US President Donald Trump called climate change a hoax. However, visit farms and talk to farmers, and you will feel its devastating effects firsthand. The September floods swept away agricultural lands around the Kathmandu valley. Over the past few months, prolonged droughts have seriously affected winter crops. In the coming years, both floods and droughts will continue to impact vital areas such as water availability, crop production, biodiversity and human settlements.
Misinformation and disinformation
This has emerged as one of the biggest risks to society. Social media platforms are filled with disinformation, and it is disheartening to see that people believe misinformation more readily than the facts. There is a low level of awareness about deepfake technology and how such content is created. This issue could lead to social unrest at any time. Politicians are aware of the spread of disinformation, yet there is no urgency to address it. Passing a few laws alone will not be enough; the government must launch a large-scale awareness campaign. Without it, disinformation could create security threats and other serious problems.
Youth migration
Every young person with a high school degree wants to go abroad. At college classrooms, I hear students discussing their plans to leave. In tea shops, I hear young people talking about how to gather funds to migrate. And in my home village in Kavre, I rarely see young people—most have already left. When I travel abroad, I find many Nepalis working and studying there. This trend does not need further explanation; its long-term economic impact will be severe, especially in the next decade.
Geopolitical tensions
Growing geopolitical tensions are gradually affecting Nepal. The Russia-Ukraine war has had economic and social repercussions here. Additionally, the escalating tensions between the US and China during Trump’s administration will not spare Nepal. Meanwhile, the growing influence of major global powers is increasing polarization within Nepali society. Our politicians are losing their ability to manage or leverage these global developments for the country’s benefit.
Political vacuum
Nepal currently has seven national political parties. Three major ones—Nepali Congress, CPN-UML, and CPN (Maoist Center)—united to promulgate the 2015 constitution. Superficially, it appears that these parties still dominate the political landscape. However, dissatisfaction is growing. More and more people are beginning to believe that traditional parties can no longer solve the country's problems, yet credible new political alternatives have not emerged. Even dedicated local-level cadres of major parties—except those who benefit directly—are considering changing their voting preferences in the next election. This has created a political vacuum at the local level. Which political force will fill this gap?
Pessimism
Nepalis are getting increasingly pessimistic about the country’s future. A majority believe conditions will worsen rather than improve. Many have lost hope that economic growth will create jobs and opportunities. This growing pessimism is contributing to rising mental health issues, which in turn are causing a surge in crimes.
Constitution
The 2015 constitution played a crucial role in maintaining peace, but it is now under threat. Anti-constitution forces are gaining momentum. Meanwhile, the commitment of political parties to the constitution is wavering. If the constitution and current system come under attack, the public is unlikely to rally to protect them because they feel the constitution has failed to improve their lives. If people do not safeguard the constitution, political instability could worsen at any time, potentially endangering democracy itself.
Our gut: A hidden world
“Death sits in the bowels,” and “bad digestion is the root of all evil,” proclaimed Hippocrates, the Greek philosopher and “father of medicine”, in the fourth century BCE. These quotes resonate profoundly in modern science as researchers continue to unveil the critical role the gut plays in both maintaining health and contributing to disease. Far from being just a digestive bowel, our gut harbors a complex and dynamic microbial ecosystem that influences nearly every aspect of our health.
The anatomy
The gut or gastrointestinal (GI) tract spans from the mouth to the rectum, and is crucial for digestion and nutrient absorption. However, its significance goes far beyond breaking down food. The gut is home to approximately 100 trillion microbes—bacteria, archaea, fungi and viruses—that outnumber human host cells by ten-fold. This bustling microbial metropolis, known as the gut microbiome, is often considered an “essential organ” due to its indispensable functions.
Weighing roughly two kilograms—comparable to the human brain size—the gut microbiome contains 150 times more genes than the human genome. Over millennia, these microbes have co-evolved with humans, establishing a symbiosis that profoundly influences our physiology, immune system and even mental health.
A landmark study (Almeida et al 2020) published in Nature Biotechnology highlighted the staggering gut microbiome diversity. The study cataloged 204,938 reference genomes and 170m protein sequences from 4,644 bacterial species found in the human gut. Despite these advances, much of the gut microbiome remains an uncharted territory, with 70 percent of its microbial populations still uncultured in the laboratory and poorly understood.
Diverse, complex microbiota
The gut microbiota (GM) is a highly diverse and intricate microbial community, comprising over 1,000 heterogeneous species dominated by six major phyla, Firmicutes (Clostridium, Lactobacillus, Enterococcus), Bacteroidetes (Bacteroides), Actinobacteria (Bifidobacterium), Proteobacteria (Escherichia coli), Fusobacteria, Verrucomicrobia, and Cyanobacteria. Of these, Firmicutes and Bacteroidetes dominate adult gut microbiota, accounting for 80-90 percent composition.
The dominant fungal species are Candida, Saccharomyces, Malassezia and Cladosporium. Meanwhile, the gut virome, the viral counterpart of the microbiome, is vast and largely uncultivated. Enteroviruses, parechoviruses, and sapoviruses are common residents. A Journal of Clinical Microbiology 2012 case report highlighted the gut virome diversity in stools collected from two healthy infant siblings during their first year of life, identified 15 enteric genera Adenovirus, Aichivirus, Anellovirus, Astrovirus, Bocavirus, Enterovirus, Parechovirus, Picobirnavirus, and Rotavirus. Additionally, the gut DNA viromes of Malawian one-year-old infant twins, with severe acute malnutrition, revealed Anellovirus, Picobirnavirus, and HPeV-1/-6 as the most frequently observed viruses.
Archaea are less diverse but highly conserved, with Methanobrevibacter smithii being the most frequently observed species across all six continents.
Each individual’s GM is a unique microbial signature, shaped by genetics, immune function, diet, lifestyle, environment, epigenetics and early microbial exposure during birth and breastfeeding. These microbes colonize different GI tract sections, with the highest biomass found in the caecum and proximal colon.
Health guardians
GM performs crucial functions for maintaining health. In digestion and metabolism, gut microbes break down complex carbohydrates, synthesize vitamins such as B and K (via Bifidobacterium, Lactobacillus, Salmonella, Streptococcus, Clostridia, and Listeria), and produce short-chain fatty acids (SCFAs) like butyrate, which nourish colonic cells and regulate inflammation.
While humans cannot digest fiber, bacteria possess glycoside hydrolases/ polysaccharide lysases that ferment plant polysaccharides. Gut bacteria Eubacterium, Roseburia, Faecalibacterium and Coprococcus ferment indigestible fibers like resistant starches, and cellulose, generating butyrate, provides energy to colonocytes. Butyrate enhances bowel health by regulating colonic motility, improving blood flow and preventing pathogen overgrowth. GM Bacillus subtilis and E. coli synthesize riboflavin (vitamin B2), essential for cellular metabolism. With 70 percent of the immune system in the gut, microbes train immune cells to differentiate pathogens, ensuring immune balance. Furthermore, they strengthen the intestinal barrier, preventing harmful pathogens and toxins from entering the bloodstream.
Through the gut-brain axis, they influence mood, cognition and behavior, impacting conditions like anxiety and depression. Maintaining a healthy balance of GM, known as ‘normobiosis’, is crucial for overall well-being. Disruptions to this balance, ‘dysbiosis’, fosters pathogen overgrowth triggering health issues.
Declining diversity
Modern lifestyles and urbanization have significantly reduced GM diversity, impacting health. Processed diets, irrational antimicrobial use, sedentary lifestyles, high salt/protein intake and limited exposure to natural environments have caused a multigenerational loss of beneficial microbial signatures, key for immune resilience. A 2024 study in Kazakhstan revealed stark differences in gut diversity between urban and rural populations. Urban microbiomes showed reduced diversity, elevated Firmicutes/Bacteroidetes ratios and higher prevalence of Coprococcus and Parasutterella. Rural populations exhibited greater microbial diversity, with abundant Ligilactobacillus and Paraprevotella, correlating with their fiber-rich diets. Interestingly, a Nepali study (Jha et al 2018) found traditional Himalayan populations (Chepang, Raute, Raji, and Tharu) had distinct microbiome signatures compared to Americans, emphasizing lifestyles impact on gut diversity.
This GM diversity depletion is linked to autoimmune diseases and chronic inflammation. Dysbiosis is implicated in obesity where excessive Firmicutes enhance fat absorption. Inflammatory bowel disease (IBD) (Crohn’s disease, Ulcerative colitis), features reduced alpha diversity and shifts favoring pathogenic Gamma-proteobacteria. Colorectal cancer patients exhibit harmful bacteria, such as Fusobacterium nucleatum, genotoxic E. coli, Enterotoxigenic Bacteroides fragilis, produce metabolites fostering tumorigenesis. Dysbiosis also influences metabolic disorders (diabetes) and neurodegenerative diseases (Alzheimer’s, Parkinson's) through inflammation and the gut-brain axis.
Advancements
Advancements in gut microbiome research herald a new era of personalized medicine. Probiotics/prebiotics restore microbial balance by enhancing beneficial GM, while fiber-rich diets and healthy lifestyles promote gut health reducing inflammation. Conversely, ultra-processed foods, artificial sweeteners and emulsifiers disrupt this balance, decreasing diversity and driving inflammation. Innovations like fecal microbiota transplant treat C. difficile infections and hold promise for IBD.
Despite progress, gut microbiome research is still in its infancy, with challenges in decoding complex host-microbe interactions. Investigating gut microbial signatures of exceptional mountain climbers, like Sherpas, and ethnic Nepali communities could lead to personalized therapies. Technologies like metagenomics/metabolomics offer breakthroughs in diagnostics and therapies. Deepening our understanding of this hidden world within us can unlock new avenues to enhance well-being and resilience.
Hydrogen vs electric vehicles
The race to decarbonize the transportation sector has brought two primary contenders to the forefront for heavy-duty applications: hydrogen-powered vehicles (HPVs) and battery electric vehicles (BEVs). Road transport, especially that of commercial vehicles such as trucks and buses, and other large vehicles is pivotal to the global supply chain and public transportation but at the same time contributes highly to emissions of greenhouse gases. Both technologies promise reduced emissions, but their viability for heavy-duty transport varies based on energy density, infrastructure, operational range and cost.
Energy density
Energy density is a critical factor for heavy-duty vehicles since large vehicles have very high energy requirements. Hydrogen fuel cells utilize both compressed hydrogen gas and liquid hydrogen, which possess energy densities of approximately 120 MJ/kg and 141 MJ/kg, respectively. This in turn gives hydrogen vehicles high energy densities allowing for large ranges without compromising payload capacity. In contrast, lithium-ion batteries used in BEVs have an energy density of approximately 0.2 MJ/kg. The lower energy density implies that very large and heavy batteries are needed for long ranges, which may decrease the payload. Advances in battery technology such as solid-state batteries are an example of working on the mentioned gap but are yet to be developed fully.
Capital and maintenance costs
In the acquisition and maintenance cost comparison for heavy-duty transport, hydrogen trucks, which cost approximately $350,000 for a 40 kg fuel tank capacity, are much costlier than electric trucks that, on average, cost $150,000 for a 150-kWh battery pack, because of the immaturity of fuel cell technology. But in the long run, hydrogen trucks are more cost-effective in terms of total cost of ownership (TCO) because the fuel cell has a much longer lifespan than batteries and has lower maintenance costs than electric trucks. Although electric trucks are more economical at purchase, they have higher maintenance costs over time, primarily due to battery degradation and eventual replacement.
Refueling and charging infra
Refueling time is a major operational consideration, and since hydrogen vehicles can be refueled in 5-15 minutes, they outperform electric vehicles. For example, the Shell refueling station in Long Beach, California, has a capacity of about 1 MW at 700 bar high-pressure and can refuel 50 hydrogen-powered vehicles with 30-40 kg tank capacity per day. But charging of BEVs takes much longer compared to refueling of HEVs. High output fast chargers—DC chargers over 350 kW like in Tesla’s V4 supercharging station for its semi trucks with massive ~900 kWh packs—can charge a battery to 80 percent within half an hour and limit vehicle throughput to 10-15 per station per day. Standard charging mechanisms include AC chargers, which usually take many hours and therefore are not efficient for heavy-duty transport with tight schedules. Hydrogen refueling stations are currently expensive to establish, costing $1-2m per station with a capacity of 500 kW to 1 MW. EV charging infrastructure is more modular, with Level 2 stations i.e. AC fast charging stations (6 kW to 20 kW) costing $2,000-$5,000 and fast-charging stations (25 kW to 350 kW) costing $50,000-$100,000.
Operational range and cost
Current hydrogen-based heavy-duty vehicles need to be refueled between 500-800 km, although prototypes such as the Toyota Kenworth T680 fuel cell truck have been produced with the capability of covering more than 1000 km. Hydrogen vehicles contain fuel tanks of 30-40 kg of hydrogen and are built to work under a pressure of up to 700 bar. The cost of hydrogen fuel is between $6- $10 per kg, meaning that the operating cost per kilometer is between $0.12 and $0.20 for a conventional heavy-duty truck. Medium and heavy-duty BEVs, like the Tesla Semi, based on battery capacity can drive 500-800 km using a battery with a maximum capacity of 1 MWh. In other countries, it costs $0.10 to $0.20 per kWh to charge the electricity, hence the operation cost of $0.10-$0.15 per km is comparatively higher than that of Nepal. According to a study by the NEA, the cost of operating electric vehicles in Nepal is 15-20 times lower than petrol vehicles: for electric cars, it is Re 0.7 paisa per kilometer, Re 0.8 for SUVs or jeeps, Re 0.9 for microbuses and Rs 1.2 for large buses.
The green aspect
Environmental aspects shape the complex relations between hydrogen and battery-electric vehicles. Hydrogen’s environmental impact hinges on its production method: green hydrogen, produced through the electrolysis of water using electricity from renewable sources, is a cleaner but comparatively expensive solution, while gray hydrogen produced from natural gas has a high CO2 output. Technologies like carbon capture and storage (CCS) have improved the blue hydrogen to fill this gap. A notable environmental advantage of hydrogen-powered vehicles is that their byproduct is just water vapor, and thus doesn’t emit any carbon into the atmosphere. Even though electricity used by BEVs can be from renewable sources, the two main environmental issues are associated with batteries. The exploitation of such strategic minerals such as lithium, cobalt and nickel brings with it questions on resource depletion as well as the impact on the environment. However, recycling or disposal of the batteries becomes a concern when the BEV batteries degrade over time—typically after about 10 years.
Hybrid model
Hybrid models combining hydrogen and battery technologies are emerging as a promising solution. These vehicles are driven by hydrogen fuel cells as the main power source and batteries that will be used for auxiliary/peak load. This approach enhances the efficiency of the features inherent in both technologies, including the range of operation and regenerative braking. For instance, the Honda CR-V e: FCEV incorporates hybrid systems to balance performance and efficiency that provide 29 miles of range via battery, adding to the 241 miles from the fuel cell. The hybrid model is more appropriate for developing countries like Nepal, where establishing extensive hydrogen refueling infrastructure is expensive and not feasible in all locations. Thus, by incorporating a battery as an extra power source, the hybrid model allows vehicles to cover the necessary range to reach refueling stations. Current trends are to further invest in R&D of lighter fuel cell systems and higher capacity batteries to cut costs and ease integration.
Conclusion
The heavy-duty vehicle registration in Nepal was about 18,500 units in 2023 and is projected to reach around 20,400 units by 2026. This highlights the potential for hydrogen and electric technologies to play a pivotal role in the decarbonization of the transportation industry. Heavy-duty transport may benefit from hydrogen or electric technologies but each has its strengths and weaknesses. Hydrogen has the highest energy density, fast refueling time, and longest-range satisfaction compared to battery electric vehicles, making it suitable for long-distance use. Nevertheless, hydrogen remains an immature technology, with the problem of expensive hydrogen production and the lack of refueling stations persisting. These issues can be solved through strategic solutions such as government subsidies, incentives for green hydrogen production and policies to encourage private sector investment. BEVs are cheaper with regard to energy, require less maintenance and have a more extensive charging network. However, they have relatively less energy density, longer charging time and limited traveling distance, which are not suitable for commercial purposes for heavy-duty applications. That is why hybrid models are considered to be intermediate solutions that combine the possible benefits of both technologies. The choice ultimately depends on specific use cases, availability of infrastructure and regional energy policies. As the world continues to look for sustainable production of heavy-duty vehicles, both hydrogen and electric technologies are likely to coexist in the coming years as well.
Real estate at a crossroads
The real estate sector in Nepal has undergone significant transformations over the past few decades, serving as a vital component of the nation’s economy. Despite its potential to drive growth, employment and investment, the sector has faced persistent challenges, including regulatory bottlenecks, valuation discrepancies and market saturation. Recent government initiatives, coupled with evolving demographic and economic trends, suggest a cautious revival, although policy and structural adjustments remain critical to unlocking its full potential.
Nepal’s real estate sector has been fraught with systemic challenges. Among the most prominent is the restrictive land ceiling provision, which has hampered the free transfer of land ownership. Developers managing large-scale projects—spanning 50 to 200 ropanis of land—often find themselves unable to sell properties due to these limitations. This has created a bottleneck, stalling the market and leading to financial distress for developers, who struggle to repay loans to financial institutions.
The problem is compounded by Nepal Rastra Bank’s (NRB) stringent policies, which have tightened real estate financing. Cooperative organizations, heavily invested in real estate using depositors’ funds, faced liquidity crises, leading to their collapse in some instances. These failures not only hurt the sector but also eroded public trust in financial institutions.
Demographic factors have also played a role. Many young Nepalis emigrate for education or employment, selling their properties before leaving. Simultaneously, those abroad often remit funds to their families, who purchase land or property, resulting in market saturation. This oversupply, coupled with weak demand, has further destabilized the sector.
One critical issue undermining Nepal’s real estate sector is the disparity between government valuation of land and its actual market price. Government valuations, often a fraction of market prices, enable opportunities for illicit fund laundering. For instance, land valued by the government at Rs 1m can fetch over Rs 10m in the market. Such discrepancies hinder transparent transactions and create inefficiencies in the market. Experts have suggested involving private sector professionals in valuation committees to ensure accuracy and curb malpractice.
In an attempt to address these longstanding challenges, the government recently introduced amendments to the Land Act, National Parks Act and Forest Act through an ordinance. These amendments include limited exemptions in real estate transactions, a move aimed at revitalizing the sector. However, critics argue that such provisions may be susceptible to policy misuse, raising concerns about potential corruption.
One contentious provision allows landless squatters to gain ownership of plots they have occupied for extended periods. While proponents argue this addresses social equity, detractors warn it could encourage encroachments. The ordinance has also been lauded for easing land ceiling restrictions, which the Nepal Real Estate and Housing Development Federation believes will stimulate sectoral growth.
After years of stagnation, Nepal’s real estate market is showing signs of recovery. In the first five months of the current fiscal year, banks and financial institutions disbursed NPR 20.34bn in real estate loans, representing an 8.62 percent year-on-year growth. This resurgence aligns with an increase in registered land deeds, which climbed from a pandemic-induced low of 12,000 to over 40,000 monthly transactions in 2023-24. The revival has been attributed to growing market confidence and increased business activity. Rise in transactions and loans indicates a positive trend. However, there is a need for more practical income assessment criteria and flexible loan limits to sustain momentum.
Real estate activity has seen uneven growth across Nepal. Districts such as Sunsari, Morang, Jhapa, Kailali and Dhanusha have emerged as transaction hubs, consistently recording over 1,000 monthly transactions. In contrast, regions like Sirdibas, Gorkha, have witnessed minimal activity. This regional disparity underscores the need for localized policy interventions to address unique challenges and opportunities.
Despite its struggles, Nepal’s real estate sector holds immense potential. Urbanization, population growth and the allure of modern lifestyles continue to drive demand for residential and commercial properties. Additionally, the tourism industry offers opportunities for real estate development in hotels, resorts and homestays.
The integration of digital platforms has further revolutionized the industry. Online marketplaces like Daleykaka.com have streamlined transactions, enhancing transparency and efficiency. Additionally, increasing interest from foreign investors and the Nepali diaspora presents an opportunity to attract new capital and expertise.
To fully harness the potential of Nepal’s real estate sector, a comprehensive and strategic approach is necessary. This includes implementing policy reforms that prioritize revising land ceiling regulations to foster large-scale development while maintaining equity in land distribution. The introduction of an Urban Development Act would serve as a significant milestone, facilitating systematic urban settlement and encouraging private-sector engagement in large-scale urban projects. Ensuring valuation accuracy is equally vital. By involving private professionals in land valuation committees, discrepancies between government and market valuations can be mitigated, fostering greater transparency and reducing the prevalence of illicit transactions.
Financial accessibility remains a cornerstone for driving market participation. Nepal Rastra Bank should consider revising its income assessment criteria and loan limits, thereby creating an environment where financing becomes more attainable for both buyers and developers, which in turn would stimulate market activity. Moreover, given Nepal’s susceptibility to natural disasters, it is imperative to adopt disaster-resilient construction practices. Sustainable and resilient building methods not only ensure long-term structural stability but also contribute to safeguarding investments in the sector.
Lastly, the simplification of legal and administrative processes is crucial. Streamlined land administration procedures, coupled with the removal of bottlenecks in land revenue regulations, would significantly enhance governance efficiency, making the real estate sector more dynamic and investor-friendly.
Nepal’s real estate sector stands at a crossroads. While recent policy interventions and market trends offer hope, sustained growth requires coordinated efforts across stakeholders. By addressing structural and regulatory challenges, enhancing transparency and leveraging technological advancements, Nepal can unlock the true potential of its real estate sector. This transformation would not only bolster economic growth but also fulfill the aspirations of millions seeking stability and prosperity through property ownership. With the right blend of policy, innovation and stakeholder collaboration, Nepal’s real estate sector can evolve into a cornerstone of its economic development, fostering sustainable growth for years to come.