Submit your Article

To all living eight prime ministers, finance ministers, living finance secretaries, and governors of Nepal Rastra Bank. To all living deputy chairs of the National Planning Commission, eminent economists, advisors, experts, and professors of economics. To all brilliant scholars working globally with the World Bank, Asian Development Bank, International Monetary Fund. 

To all eminent Harvard, Stanford, Oxford, and Cambridge scholars working in the field of economics. To the deans, professors, and lecturers in the economics department of Nepali universities. To all researchers who analyze the regional and global context of Nepal’s economics.

To economic diplomats, heads of missions in business and economics. And to all economic researchers and planners, impact analysts, economic journalists and columnists.

Firstly, amid this peculiar festive season, characterized by slow market activity and lower-than-anticipated traffic on major highways, I extend my warm wishes for your well-being and joy. Today, as a concerned citizen, I raise some pressing questions. 

What has transpired within Nepal’s economy over the past three years? Why does everything seem stable when it’s not? Why isn't trade and commerce flourishing?  Why does the chorus of “There’s no money” persist everywhere? Why does the nation seem to be mourning some unseen loss during this festive climate? What’s the real story behind it all?

You, the distinguished experts, are the ones who can unravel these mysteries and more. Every ordinary citizen of Nepal eagerly awaits your responses. 

It seems, however, that many of you have been avoiding these questions. Could it be that your efforts to plant the right seeds have failed, or perhaps the true root causes of Nepal’s current economic woes have eluded you? Have your analyses and course of action proved futile, or do you simply not concern yourselves with the ongoing situation?

We are firmly convinced that you bear responsibility for these matters, and we seek your clarifications. Your standard responses, such as low GDP, inefficient development budget spending, remittance dependency, lack of industrialization, and import reliance, do not suffice. These issues have been repeated for years, but not a single working solution has been offered. Are there no new factors to discuss, or, if your previously stated reasons are accurate, why hasn't any progress been made? 

The fundamentals of our economy overshadow your assessments and estimations. Isn't it your duty to address these problems? We demand answers. There are more questions ...

How have major corruption scandals, such as the 60 kg gold smuggling case, the Lalita Niwas land grab scam, and the fake Bhutanese refugee issue, institutionalized corruption and impacted our economy? To what extent do such incidents affect the nation's economic growth? Are such scams still occurring behind the scenes? Whether they come to light or remain concealed, how do they affect the economy when corrupt wealth significantly multiplies? Where does this black money go, and what strategy should economists employ to curb corruption?

How do we manage the increasing national administrative expenses, particularly within the federal administration, as the ‘investment return’ of administrative costs? What is the ‘investment return’ of federal administrative expenses?

How has the fluctuation in the value of the dollar affected the economy in recent years, and what actions need to be taken in such circumstances?

When analyzing ‘inward remittances’, who monitors external remittances? How has the tax structure, focusing on ‘tax above business but below brokerage,’ influenced external remittances, and how are non-resident Nepalis expanding their investments? Have they secured funding from businesses like restaurants and petrol pumps? Why do Nepali entrepreneurs primarily seek investment through foreign travel? What is the state of the funds earned from the sale of Nepal’s ancestral property abroad? How are educational loans for students studying abroad managed?

Do you truly understand taxation, or is it merely a mathematical formula for collecting government administrative expenses? Has taxation, rather than being a facilitator, acted as a deterrent for entrepreneurs looking to establish businesses in Nepal? If so, are we barking up the wrong tree? Is our economic path based on incorrect formulas, trapped within traditional perspectives, hindered by inadequate research methods, and constrained by outdated experts? Do we need to break free from our flawed assumptions and understanding? We demand answers.

Moreover, why the reluctance to promote the country’s growing exports through information technology? Why hesitate to critically analyze the actual importance and impact of our national pride programs? Why the hesitation to question the expenses of non-functional institutions and agencies?

If remittance is a key driver of Nepal’s economy, why hesitate to support foreign employment by making it more favorable, well-planned, transparent, modern, and honorable? 

While creating landless loans is nearly impossible, why restrict citizens’ access to funds for purchasing land worth about Rs 100 at a rate of nearly 30 rupees and not enact relevant legislation?

Why the skepticism about creating a conducive environment for the Nepal Stock Exchange Board to make bold decisions? Why has the burden of interest not been alleviated to facilitate access to funds and foster an environment that promotes entrepreneurship and innovation?

We insist on answers. What comes next? We don’t have all the answers, but you might. The nation has invested its hopes, aspirations, and faith in your knowledge, experience, and recognition. Failing to channel your economic expertise effectively would be a missed opportunity—embarrassing even. A knowledgeable expert can solve problems. Therefore, become empowered, self-reliant, and patriotic, transcending illusions and delusions. When does this new beginning occur, and how? We insist on answers.

This piece was inspired by a conversation with a banker 

Prime Minister Pushpa Kamal Dahal’s recent visit to China has significant implications for Nepal’s foreign policy. This visit comes at a crucial time, coinciding with the Asian Games, and highlights Nepal’s evolving foreign policy and its intricate relationship with its northern neighbor. Due to the internal conflicts and a political opportunity resulting from the dissolution of the Parliament in July 2021, Dahal transitioned an alliance with the then NCP leader KP Sharma Oli to the Nepali Congress, signaling a noteworthy shift in Nepal’s political landscape, with far-reaching implications for foreign policy. Both domestic and international factors drive this realignment. It raises questions about Nepal’s relationships with major global players, particularly China and India, as well as its standing in the global arena and the geopolitics of South Asia.

A complex relationship

Dynamic shifts and fluctuations have marked a complex relationship between Dahal and China. At the outset of his first term as prime minister in 2008, Dahal established a strong alliance with Beijing, marked by reciprocal support. However, the course of their engagement has been far from steady. In the lead-up to the 2022 elections, Dahal formed an electoral alliance with Prime Minister KP Sharma Oli-led NCP to consolidate political power. Unfortunately, this alliance proved short-lived and ultimately resulted in a dramatic political split, strained Dahal’s relations with Oli and China, which had firmly supported the Oli-led government. This nuanced history illustrates the intricacies of Dahal’s interactions with China, showcasing the challenges and fluctuations in their relationship over the years.

A balancing act

Dahal’s recent move toward a closer alignment with the United States and India signifies Nepal’s deliberate pursuit of a balanced foreign relations strategy. His choice of India as his first official visit during his third tenure as prime minister earlier in the year demonstrates a clear intent to strengthen ties with that country. However, this diplomatic realignment is driven by the imperative to adapt to evolving global dynamics and safeguard Nepal’s sovereignty, given the complex interests of its more powerful neighbors. Rooted in Nepal’s enduring struggle for independence and its aspirations on the global stage, this commitment to a delicate equilibrium reflects the nation’s historical context. As a landlocked nation located between regional giants, Nepal’s leaders face the ongoing challenge of skillfully managing these relationships to protect their country’s interests and secure its continued independence in the international arena.

Chinese interests

China’s interests in Nepal are multifaceted and rooted in its broader geopolitical objectives. One key aspect is Nepal’s adherence to the one-China policy, which aligns with China’s core interests regarding Taiwan and Tibet. This alignment is crucial for China’s territorial integrity. Additionally, China seeks Nepal’s support in international diplomacy, development and security initiatives. Furthermore, Nepal’s involvement in the Belt and Road Initiative (BRI) theoretically offers China a pathway to expand its regional economic influence and infrastructure.  However, the nine BRI projects signed in Nepal have yet to materialize, partly due to uncertainties surrounding their funding modalities. Strengthening connectivity with Nepal is a strategic avenue for China to extend its influence into South Asia, bolstering its regional presence.

Lastly, China’s ambition to cultivate a trusted and ‘strategic’ relationship with Nepal, as articulated by President Xi Jinping during his visit to Nepal in 2019, has remained a blueprint to direct China’s engagements in Nepal. Nevertheless, Nepal faces the challenge of balancing these multifaceted interests while safeguarding its sovereignty and national interests, demanding adept negotiation skills and a nuanced approach to harmonize democratic principles with its stance on the one-China policy, reflecting a delicate nature of Nepal’s relationship with its influential northern neighbor.

A ceremonial visit

While presented as an effort to strengthen Nepal-China relations, Dahal’s recent visit to China appeared more ceremonial than substantive. Despite engaging with high-ranking Chinese officials, including President Xi Jinping, and signing 12 agreements, the visit faced limited diplomatic expectations. There was widespread anticipation for Dahal to advocate Nepal’s national interests, particularly concerning the recent contentious Chinese map affecting Nepali territory. The joint statement of the visit primarily consisted of diplomatic pleasantries and reaffirmations of historical ties, with Nepal restating its commitment to the one-China policy but failing to secure reciprocal assurances regarding its concerns. While there were some encouraging elements in the agreements, such as border point reopenings and cooperation in sectors like the BRI, connectivity networks and renewable energy projects, the absence of a much-awaited Project Implementation Plan Agreement and the failure to convert the loan for Pokhara International Airport into a grant were notable misses for Nepal. While potentially financially challenging, Dahal’s commitment to exploring the feasibility of the Jilong/Keyrung-Kathmandu Cross-Border Railway was a notable development.

Dahal’s prioritization of the Global Development Initiative (GDI) over Global Security Initiative (GSI) and Global Civilization Initiative (GCI) underscores Nepal’s cautious and balanced approach to international security matters. This stance reflects Nepal’s commitment to avoiding entanglement in major power rivalries and safeguarding its sovereignty. Nepal aims to maintain stability in a volatile region by emphasizing development over security, in line with its historical stance of neutrality and non-alignment. The visit ultimately became a standard bilateral exchange; ambitious agreements hold promise, but their impact on the ground level has been limited, reflecting their token nature. 

The way forward

As Prime Minister Dahal’s visit to China marks a pivotal moment for Nepal’s foreign policy, the nation stands at a critical juncture, given its evolving political landscape and changing alliances with regional and international powers. Navigating this landscape requires strategic diplomacy to safeguard Nepal’s sovereignty. Success hinges on the effective execution of agreements and carefully evaluating their implications, shaping Nepal’s foreign policy trajectory to align with its national interests and global aspirations while fostering confidence-building measures with China.

The author is a recent graduate with a Master’s degree in International Relations from South Asian University, New Delhi and is a junior researcher at the Centre for Social Inclusion and Federalism in Lalitpur, Nepal

Since the provincial assembly elections on December 26, 2022, Koshi has witnessed a series of changes in leadership. Hikmat Karki from the CPN-UML and Uddhav Thapa from the Nepali Congress both took turns as chief minister within a short period. However, their administrations fell as they failed to win a vote of confidence.

Presently, Kedar Karki, aligned with Nepali Congress’ anti-establishment faction, has been sworn in as the chief minister of Koshi province, succeeding Parshuram Khapung, the province chief, in compliance with Article 168 of the Constitution. He secured his position on Saturday with the backing of 47 members of the Province Assembly. Karki, known for his proximity to NC leader Shekhar Koirala, managed to clinch the chief ministership with the support of 39 PA members from CPN-UML and eight PA members from the NC, despite opposition from the coalition government at the Center against a new coalition in Koshi.

Currently, Koshi has sidestepped the need for midterm elections. However, the political turmoil unfolding in Koshi since the Nov 2022 polls is a glaring example of the avarice within the Nepali political fraternity. It unequivocally reflects how the country’s precarious state in every aspect can be attributed to the actions of politicians. These political leaders demonstrate an inability to govern the country in an organized manner and adhere to the constitutional framework. Because of these politicians, the constitution has become nothing but an ordinary paper.

In the past, Nepal maintained a cohesive foreign policy that garnered respect. However, this approach was disregarded by politicians, and they have struggled to formulate a coherent replacement. Our political leaders express divergent views on the national foreign policy. Even the same politicians present varying stances in different gatherings and platforms. For instance, when visiting the US, they endorse the Indo-Pacific Strategy (IPS) and the Millennium Challenge Corporation (MCC). Conversely, during visits to China, they show appreciation for the Belt and Road Initiative (BRI). Their positions are contradictory.

Nepal has sufficient natural, human, financial and infrastructural resources that can be utilized or managed effectively to enhance the country’s economic, social and overall development. These resources include minerals, water resources, agricultural land, skilled workforce, tourism potential and more. With proper planning, utilization and management of these resources, Nepal can achieve growth, improve living standards and enhance its overall prosperity. But a failed leadership has kept the country in a mess.

Despite operating within a multi-party system, Nepal is increasingly trending toward an autocratic and a single-party rule due to the prevalent practice of forming coalitions. Consequently, this trend has diminished parliamentary competitiveness. The present ruling coalition perceives itself as beyond the bounds of the Constitution and has engaged in numerous actions that surpass the confines of the legal framework.

Even neighboring countries have not extended us significant help in maintaining peace, prosperity and fostering development. It's evident that they prioritize actions that align with their own interests, and it is our responsibility to ensure our own well-being. 

At present, the Nepali Congress holds a pivotal position in the Parliament. It should ideally lead the country, but the current leadership of the party appears to lack a clear direction. They have struggled to maintain the traditional essence and values of the party. Given the state of Nepali political parties, our parliamentary system is at the risk of faltering.

There is an urgent need for a strong leadership within the Nepali Congress. As the largest democratic party in Nepal, it’s vital for the party to function effectively and set a proper course. This would not only benefit the party but also contribute positively to the national political landscape.

What if political parties, especially the Congress, fail to deliver? Such failure could lead the country toward another wave of political change, something we have been witnessing over the decades. 

The author is a member of the Supreme Court Bar and has been practicing corporate law for around three decades

As Israel has gradually resumed control and cleared the border areas flooded with terrorists, the extent of the Hamas massacre has been revealed:  

As of today, we have counted more than 1,400 people murdered, among them babies, children, women and elderly people. This number includes 10 Nepalis enrolled in the "Learn and Earn Program" and more than 50 nationals from other countries. Entire families were butchered in their homes. Infants were mutilated and children gunned to death with their parents. Approximately 260 young men and women were slaughtered, most of them shot to death, at a music festival. More than 3,800 people were injured, many of them still hanging between life and death. The fate of 200 abducted people remains unknown. In addition, Hamas terrorists launched more than 6000 rockets against its civilian population.

The Hamas attack in the south was a premeditated mass murder of innocent civilians. The launching of rockets against Israel's population is a further attempt to terrorize and kill innocent citizens.     

It is time to dispel myths and come to reality:

The first myth is the unholy equation made by many mainstream media outlets, in a futile attempt to preserve a non-existent balance, to deceptively describe the conflict as "violence on both sides."

However, while Israel seeks peace and coexistence, the Palestinian terrorist organizations, including Hamas, choose death and devastation. While throughout the conflict Israel has made great efforts to minimize harm to civilians, the militant Palestinians aim at innocent civilians as their primary objective. Hamas commits a double war crime–targeting Israeli civilians while using the residents of the Gaza Strip as human shields. 

There can be no comparison. There is no equivalence between those attacking innocent civilians and those defending themselves against such attacks.

While Israeli rockets are used to protect civilians, Palestinian civilians are used to protect their rockets.

The second myth is one, repeated by many, that the use of force is ineffective or inherently immoral. This is false. There are times when the use of force is a necessity, an obligation and the only moral course of action. Facing the depth of evil of terrorists like those in Hamas, who set out to murder babies and slaughter innocent people in their beds, it is the obligation of every state or entity to stop them from accomplishing their goals and to prevent such atrocities by any available means. 

It is unacceptable that the right to use force in self-defense is questioned in relation to Israel. Like every other state in the world, Israel has the right and the obligation to protect its citizens and to take all necessary measures to defend its people. 

It is abhorrent that there are those who question that right. When media personalities and others question Israel's right to self-defense, the people of Israel ask: How many Israelis must be killed in order for that right to be recognized, as it is for any other nation on this planet? 

The third myth to be highlighted is one that touches on the essence of the conflict between Israel and the extremist Palestinians. The falsehood that needs to be dispelled is that the conflict is only about tangible elements, like territory, water or other material assets. One of the most clichéd statements is that 'if Israel would only do this or that then there will be peace.' The attack on southern Israel demonstrates the fact that Hamas, like other extremists in the Palestinian camp, have no interest in compromise or coexistence. They wish to eradicate Israel and refuse to recognize it in any shape or form. 

This is an existential battle, in which Israel's survival is at stake. Israel has gone a long way in trying to achieve peaceful coexistence. It recognized the Palestinian Authority and relinquished territory to the Palestinians. Israel vacated the entire Gaza Strip, including the dismantling of all Jewish settlements in that territory. However, Israel was not rewarded with peace. Instead, the territories it vacated were then turned into terrorist training camps and launching pads for attacks. There is a growing realization that peace will only come when the majority of Palestinians choose coexistence over conflict and eject the extremists from their midst.      

There are many who ask how they can help Israel at this time of need. It warms the hearts of the people of Israel to witness such offers of support and they are deeply appreciated. 

Beyond the emotional and material support provided by many, no less important is moral support. Public statements by elected officials, solidarity communal gatherings in synagogues and churches, and the illumination of public buildings in blue and white (the colors of our flag) are all fine examples of reassuring actions. 

In today’s world of social media, everyone has a voice and anyone can be an ambassador of goodwill. If you wish to support Israel, spread the word of truth and help us dispel the myths.

Israel highly values the support extended to Israel by Nepali Government and so many citizens. Condemning the attack by the Hamas terrorists and standing with Israel in this difficult time is essential and reminds us of the historic decision taken by BP Koirala to establish diplomatic relations between Nepal and Israel in 1960.

The author is the ambassador of Israel to Nepal