This is the 41st instalment of Diaspora Diaries, a regular series in Nepali Times with stories of Nepalis living and working abroad. Even as a kid, I could feel my family's standard of living improve when my father left for Iraq after a failed trucking business in Nepal. It crept up in small ways. Instead of five rupees for lunch money, I now got ten. Or the clothes my mother bought me were of a better quality. Birthday celebrations got bigger. Immediately after Iraq, he hopped on a plane to the UAE to work at an Abu Dhabi-based hospital as a supervisor of security guards. It was a relatively easy job, and he earned well. I am not sure why, but the UAE has fascinated me ever since. I suppose part of it has to do with familiarity, as I watched YouTube videos from a young age to learn more about the country where my father was working. When family members encouraged me to go to Australia or the UK for further studies, I figured the UAE was a better option as I did not want to spend my father's hard earned money to go elsewhere. I was well aware of his struggle and sacrifice, and the UAE felt like a better fit for financial reasons. After my 12th, I headed to the UAE on a family visa that my father arranged. On my second day in Dubai, I passed a walk-in interview for a salesman job at a retail store. I also did my bachelors in business administration over weekends at Jaipur University.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230926120936_cd472b68ad1a2f120dd8bc634c049946f5939d80ff2a2993dd34d67109ce72ce.jpg" data-media-id="editor_0" data-image-id="20230926120936_cd472b68ad1a2f120dd8bc634c049946f5939d80ff2a2993dd34d67109ce72ce" data-rendition-name="original" width="450" height="592" loading="lazy" alt="DD 41"> </figure>  I was hired as a salesman at a clothing company, but most of my responsibilities were that of a stock boy. One day I got the chance to showcase my salesmanship to the higher ups at a sales event at the World Trade Centre in Dubai. Impressed, they pushed me to take on more front-desk sales related tasks. I outperformed my peers, but I was not satisfied. My next goal was to become a store manager. I took it upon myself to learn various skills including bookkeeping, merchandising, setting schedules of staff and preparing sales reports. To learn these skills, I arrived at the store before opening and left after closing. Those extra hours did not translate to overtime pay, and I left the store only to sleep. I soon saw the fruits of my labour when my sales numbers landed me opportunities to train new hirees at the company headquarters. The networking allowed me to get a store manager job at our branch at the Ibn Battuta Mall. We Nepalis are indeed a hard-working, honest bunch, and there is a reason why we have built a strong reputation abroad amongst employers. I did not get to meet my father much because he was based in Abu Dhabi and I was in Dubai. His schedule was more flexible, so he would sometimes come to see me and we would go eat at Nepali restaurants. I did not share my struggles in the UAE with my father, I just wanted him to know the happy bits.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230926120928_e7e65b492d29434a1e997b85c7e8a896ed8402a5215f3ce99040ce1da7c8977a.jpg" data-media-id="editor_1" data-image-id="20230926120928_e7e65b492d29434a1e997b85c7e8a896ed8402a5215f3ce99040ce1da7c8977a" data-rendition-name="original" width="960" height="1280" loading="lazy" alt="DD 41"> </figure>  Life in Dubai was not easy. There were 8 of us from five nationalities crammed into a small room. I decided with a Nepali that I got along with to get our own place. It was a tiny 7 by 4.5 feet room that had just enough space for a bunk bed and a tiny fridge. We lived frugally, a large chunk of my earnings went on rent and school fees. Living paycheck by paycheck for me meant starting off the month strong and running dry as it ended. Towards the end of the month, I would have to resort to loans from friends, or I had to stop eating out and innovate to make food last longer by adding water to fried lentils bought in the market for one dirham, or living off white rice and fried sausages, which cost peanuts. After the store manager job, I started dreaming bigger. I was transferred to the head office and had my eyes on the area manager role. But I also had other aspirations that would interrupt my career progression -- I started toying with the idea of returning to Nepal. I was in my mid-20s, and there was pressure to get married and have children. With those added responsibilities, I would not be able to choose a risky career path like entrepreneurship, my calling. I had witnessed what was possible with hard work in Dubai during my 3.5 years there. I figured if I failed in Nepal, I could always return again for a job. It was not easy to convince my family, they wanted me to head to greener pastures like the US or Australia and not return to Nepal. Many returning Nepalis who muster the courage to call it quits and come home usually backed by savings accumulated abroad. Not me. I had no savings, only courage.&nbsp; I had learnt to work hard in Dubai, and had built the confidence to deal with people from diverse backgrounds. Even as I took my Nepal-bound flight, I knew that I would be coming back to Dubai one day, either as a tourist or for a job. I knew this wasn’t the final goodbye to the place that had been home. In Nepal I tried my hand at two different clothing lines, given my retail background. On a trip to India to buy fabric for our clothing business, Jama Store, I remember waiting in line for tea every morning at a tea stall. Chhotu, the young tea seller, drew quite a crowd every morning. Intrigued, my friend Ritu Karmacharya and I spoke with Chhotu who excitedly demonstrated to us how he prepares his tea, and what makes it so special. This struck a chord, and we considered the possibility of starting a tea place in Nepal. We also noticed many classy tea cafes in India as we walked around. Once we returned, we visited places in Nepal and realised that there was scope for this venture in Nepal as well.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230926120936_e18cd45a48ad0b2fb99250c591d9321f8c6300aadb4ad80cd9933d76d76ba587.jpg" data-media-id="editor_2" data-image-id="20230926120936_e18cd45a48ad0b2fb99250c591d9321f8c6300aadb4ad80cd9933d76d76ba587" data-rendition-name="original" width="936" height="753" loading="lazy" alt="DD 41"> </figure>  Ritu's sister, a USA returnee, also suggested that there were such elegant tea places in New York with vibrant Moroccan decor and floor seating arrangements, and she encouraged us to pursue something similar. We had no money, so I reached out to my family members in Kuwait and the UAE who agreed to become part investors. We found a vacant place in Kumaripati and renovated it. Chiya Spot was born and we started selling tea. Our special? Chhotu's tea in honor of the boy from Delhi who inspired us. At first, we made do with three or four packets of milk every day to serve our customers. But unbeknownst to us, the famous food vlogger Mr Foodie Nepal featured our café. It blew up on social media and we started getting loads of customers. We could not keep up and had to expand our space to accommodate more customers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230926120936_0fa4ec82e0ebed65de088a4519b9d9190169017534abb92cd0d2e5e28fdecf42.jpg" data-media-id="editor_3" data-image-id="20230926120936_0fa4ec82e0ebed65de088a4519b9d9190169017534abb92cd0d2e5e28fdecf42" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="DD 41"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230926120936_1f0c371596ab95192026266dcbae582bd01e3c6b313632cdaf927b2410d61c52.jpg" data-media-id="editor_4" data-image-id="20230926120936_1f0c371596ab95192026266dcbae582bd01e3c6b313632cdaf927b2410d61c52" data-rendition-name="original" width="719" height="898" loading="lazy" alt="DD 41"> </figure>  Most recently, we have also opened a new branch in Boudha. While the Kumaripati branch is inspired by Moroccan/Jaipuri decor, the cafe in Boudha is inspired by Middle Eastern design, in particular from Dubai. I remember going to Dubai Gold Souk whenever I had a few hours off to relax in the market and grab a bite with a friend at a Nepali restaurant. Now, I have brought a little piece of Old Dubai back home to Nepal at the new café, to be enjoyed with karak chai that is famous there. While the vlogger Foodie Nepal's post helped draw customers to Kumaripati, my sisters’ social media posts on the Boudha branch went accidentally viral on TikTok. We got so many customers that it got unmanageable, and this even translated to angry posts and reviews as people were not happy with the wait. We were expecting our customer base to increase organically over time, not overnight. Such is the power of social media. For both good and bad. We quickly added staff and are learning every day to improve our service. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230926120936_1e044c0b6bcaea569c6651e5bf53530abc227f99d55490e5a94940ae032c4d64.jpg" data-media-id="editor_5" data-image-id="20230926120936_1e044c0b6bcaea569c6651e5bf53530abc227f99d55490e5a94940ae032c4d64" data-rendition-name="original" width="1280" height="960" loading="lazy" alt="DD 41"> </figure>  I had never, in my wildest imagination, thought I would be leaving retail to sell tea one day. But both branches are doing well, Insallah. We try to create a space for people to relax over tea, conversations, or board games without putting pressure on them to leave or order more items. As long as people are happy, the customer volume or finances will automatically work themselves out, as they have over the past three years. &nbsp;We want to fill the niche left by restaurants that either offer great ambience or reasonable prices, which we don’t believe have to be mutually exclusive. Many migrants spend a large chunk of their remittances to buy land or build houses in Nepal. I returned to Nepal empty-handed. But with my earnings here, I have managed to contribute significantly to my parent's new house, and I could not be prouder. Diaspora Diaries is a regular column in Nepali Times providing a platform to share experiences of living, working, studying abroad. Authentic and original entries can be sent to <a href="mailto:editors@nepalitimes.com">editors@nepalitimes.com</a> with Diaspora Diaries in the subject line.

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

From retail to selling chiya

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022120710124/6390574f9c7e80680e0ce14fjpeg.jpg" alt="" width="1200" height="800"/>For an average Nepali living or studying abroad, getting a green card or a resident ID of the US, UK or Hong Kong is dream come true. Most of them wait years to get their papers so that they can remain abroad, earn more than back home, and explore more opportunities.But for Meghendra Gurung of Sindhuwa village in Dhankuta district, returning to Nepal was a no brainer. Born in Hong Kong where his father Kul Prasad, a British Gurkha officer was stationed, he could have chosen to stay back. Instead he packed his back and returned to Dhankuta when his father retired.Today, he is a well-known vegetable market manager in Dhankuta, helping local farmers sell their produce. His vegetables are sold all over eastern Nepal and even exported to India.Read also: <a href="https://www.nepalitimes.com/banner/pigs-fly-and-fish-climb-trees/">Pigs fly and fish climb trees</a>, Sahina ShresthaIn the early 1990s, when the non-governmental organization The Center for Environmental and Agricultural Policy Research, Extension and Development (CEAPRED), trained farmers in Sindhuwa on off-season vegetable farming for the first time in Nepal, Mahendra got involved, was trained, and started farming.He was in-charge of market management, and after the CEAPRED project ended after two and a half years he and more than 85 farmer groups were producing off-season vegetables.But three decades ago, the Eastern Nepal market was too small. Although Dharan was a big city, the population was not large, Itahari was just developing, and there were no big markets in Jhapa either. Even Biratnagar did not consume a lot of vegetables.So it fell upon Meghendra to find a market for the produce. He put together a group and went to Nepal's big cities like Kathmandu, Pokhara and Narayangadh to study the vegeetable market.Read also: <a href="https://www.nepalitimes.com/banner/proud-to-give-back-to-nepal/">Proud to give back to Nepal</a>, Nepali Times"At that time we could not find a market that could handle the amount of vegetables we were producing," says Meghendra. So he turned his attention to India. He got in touch with vegetable traders in Siliguri and Kolkata and for the first time, Nepali vegetables entered Indian market.A Nepali who came back from abroad was instead sending Nepali vegetables abroad. The effort of one enterprising man has helped reverse the tide: Nepali vegetables are going to India instead of the other way around.Meghendra is now trying to push for Pest Risk Analysis (PRA), to identify the appropriate phytosanitary measures required to protect plants against new or emerging pests of Nepali agricultural products so that chemical pesticides do not have to be used.Says Meghendra, "If we can do this, there won't be a problem in exporting Nepali vegetables to Indian and regional markets in the Gulf. But rather than an individual, this should be a government effort. If the state facilitates it, we can do the rest."Read also: <a href="https://www.nepalitimes.com/banner/dont-give-up-on-nepal-it-has-lots-to-offer/">Don’t give up on Nepal, it has lots to offer</a>, Sahina Shrestha

Taking Nepali vegetables to the world

<figure><img width="1448" height="1084" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07cb9c7e80680e0a5fddjpeg.jpg" alt=""/><figcaption></figcaption></figure>The long-overdue privatisation of state-owned Nepal Airlines has become a political hot potato, but with Sher Bahadur Deuba of the Nepali Congress  (NC) now taking over from K P Oli the loss-making carrier may have a better chance at divestment.The last days of the Oli administration was rife with speculation that the airline’s board was preparing to offload some of its shares to the Yeti Group, which many believe was close to the former prime minister. The once reputable Royal Nepal Airlines has been <a href="https://archive.nepalitimes.com/article/business/saving-nepal-airlines-with-fleet-route-expansion-drives,1983" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/business/saving-nepal-airlines-with-fleet-route-expansion-drives,1983&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNF5qYb0YVxWCZVTlHKKotcgNYG6tA">mired in scandals and mismanagement</a> ever since the restoration of democracy in 1990. Political parties in government used the carrier <a href="http://archive.nepalitimes.com/news.php?id=8325#.YPYcpy9w0Wo" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D8325%23.YPYcpy9w0Wo&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNHD8BAxuQoXlVdZxA0xt-jaNMU5OA">as an employment agency</a>, and <a href="http://archive.nepalitimes.com/news.php?id=6057#.YPYcsi9w0Wo" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/news.php?id%3D6057%23.YPYcsi9w0Wo&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNGlRzw66RDzay3rYY4reIB_J0w9Mw">pocketed kickbacks</a> on aircraft leases.Now, despite strong opposition from employee unions and some in government, the Covid-19 pandemic and its economic fallout has left Nepal Airlines Corporation (NAC) no other option. The flag carrier lost over Rs5 billion last year as flights were grounded and domestic passenger volume shrank by 73%, and international passengers went down by 86%. These losses could be a mortal blow to the company, which has racked up a debt of Rs47 billion, and never registered a profitable year in its 63 years of existence. Yet, even when flying through severe turbulence, NAC has somehow stayed afloat because of multiple government bailouts totalling Rs31 billion over the years. Now, NAC’s situation has become so desperate that the government’s benevolence is wearing thin. As prime minister in 2019, Oli rebuffed pleas for government subsidy from NAC executives saying the carrier had to learn to stand on its own feet.“Currently NAC is a costly white elephant,” says Surya Raj Acharya, an expert in development and infrastructure policy. “The practice of the government always having to rescue public sector companies is wrong.” <figure><img width="2398" height="1274" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07ce9c7e80680e0a5fdejpeg.jpg" alt=""><figcaption> </figcaption></figure>The airline’s debts have skyrocketed because of its <a href="https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/nepal-airlines-has-new-planes-but-no-new-plans/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNHc9M-QzUx-aLxc_hv4jM7jW2eX8Q">purchase of four brand new Airbus jets</a> before the pandemic hit, as well the induction of six Chinese-made turboprops which have been grounded. The government currently shoulders all of NAC’s debts, pays off all its loans and is also the company’s guarantor and manager. Partially privatising the carrier would ensure that the government handles only its own share, while hopefully making the company competitive and profitable. It would also lessen the revolving-door politically-influenced appointments and interference in management.A corporate culture of <a href="http://archive.nepalitimes.com/blogs/kundadixit/2015/11/02/prepared-for-takeoff/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/blogs/kundadixit/2015/11/02/prepared-for-takeoff/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNHsSUGrq815MKIc8NUhg5qXAnHMGg">meritocratic employment and reward</a>, more professional management and improvement in reliability and service could turn the airline around. Just relying on flying Nepali <a href="https://www.nepalitimes.com/here-now/nepals-diaspora-comes-to-the-rescue/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepals-diaspora-comes-to-the-rescue/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNFEqcX5_KoN3Wu-tOA1cixqTJ9orQ">overseas workers and the diaspora</a> would guarantee a strong load factor.Even so, plans to privatise and transition the company from full state ownership to only majority control have been<a href="https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/&amp;source=gmail&amp;ust=1626834166121000&amp;usg=AFQjCNFl7bnK4oPk2Ux-1HdtKChxHP-rGA"> repeatedly shelved </a>over the years even as other state-owned companies were privatised. NAC employees padlocked offices and went on strike on 6 July after the Board of Directors sent management letters and draft regulations for privatisation to the Ministry of Culture, Tourism and Civil Aviation on  27 June. In response, on 11 July NAC senior management released a notice categorically denying any move towards privatisation.  <figure><img width="796" height="524" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07d19c7e80680e0a5fdfjpeg.jpg" alt=""><figcaption> </figcaption></figure>Government hesitation to act and employee agitation stem from a history of bitter experiences. Nepal’s post-1990 liberalisation boom saw the then-ruling NC initiate a wave of privatisation, albeit with disastrous results. Most newly-privatised companies, such as Gorakhkali Tyre, Bhrikuti Paper, Harisiddhi Bricks, and Bansbari Leather Shoes were unable to cope with the ownership change and folded. As a result, the state has shied away from concrete action on privatisation even if it would remove immense financial burdens. Now, with the NC back in government, there is a chance Nepal Airlines de-nationalisation could be in the cards — even though the worst scandals in the carrier’s history have involved NC politicians.To be sure, Nepal has had privatisation success stories too, with the likes of Nepal Telecom, Nepal Bank, Electricity Generation Company, Rastriya Banijya Bank and Timber Corporation Nepal all in profit, and they have improved their service after switching to a company model.The airline’s Board of Directors move to privatise was based on a report by the Corporation Reform Committee in mid-September 2019 to then Aviation Minister Yogesh Bhattarai. ‘Preparations must be made to convert the Corporation into a limited company under prevailing laws,” the report said, while also recommending restructuring ownership so that 51% of the airline remained in government hands. ‘Once the company is set up, ownership must be structured and shares distributed in such a way that it gives ⅓ of total paid-up capital to those responsible for management while sharing the rest among industries in tourism, local banks and financial agencies, company employees, the government and the general public,’ the Advisory Committee’s report notes.  <figure><img width="733" height="471" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07d49c7e80680e0a5fe0jpeg.jpg" alt=""><figcaption> </figcaption></figure>Member of the NAC Board Buddhi Sagar Lamichhane says: “Our understanding is that the corporation cannot survive under the existing structure, and managerial capacity. However, the government has the final say on any decision.”But the state’s backtracking has dismayed pro-privatisation executives. As early as 2002, another committee had recommended that the NAC switch to a company model with only majority government ownership.A new task force was then set up to review that report and present an action plan with the National Planning Commission’s Shankar Sharma. This task force presented its suggestions in 2002, backing the recommendation that the airline should either be privatised or dissolved. A report by the International Civil Aviation Organisation (ICAO) recommended in October 2004 that NAC be split into two companies for domestic and international air travel. Other committees followed in 2005 and 2010 recommending that NAC be scrapped with its employees, contracts, capital and liabilities shifted to a new Limited Liability Company (LLC) and registered with the Company Registrar’s office. Like all the committees before them, these reports just gathered dust.  <figure><img width="1752" height="1146" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110151116/636d07d69c7e80680e0a5fe1jpeg.jpg" alt=""><figcaption> </figcaption></figure>But perhaps the most promising move towards privatisation came in 2017 when the government actively sought strategic partners from the US, Australia, France, Australia and Germany. Only Lufthansa Consulting from Germany responded, and the Nepali side managed to bungle even that deal, with the Council of Ministers taking too long to give the Finance and Tourism Ministries the go-ahead.“Strategic partnerships are a must if the flagship is to be saved,” says former Finance Secretary Shankar Prasad Adhikari. “There is no reason for the government to keep bailing out a company that perennially haemorrhages tax-payers money like Nepal Airlines.” There are lessons to be learnt from Air India which accumulated losses of a staggering INR5 trillion, as the government finally moves to private the flag carrier.  However, experts caution that with the global downturn in aviation, even privatisation may not save Nepal Airlines. Even so, cutting costs, streamlining the fleet, and launching a strategic recovery plan could still save the carrier. But it would be unrealistic to expect that without privatisation and better management.

Nepal Airlines privatisation still stuck

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110101156/636ccb639c7e80680e08bbbejpeg.jpg" alt="" width="1778" height="1000"/>Thanks to the year-round pleasant weather and its geography as a valley with lakes nestled below mountains, Pokhara has been synonymous with tourism.But in the last few years, it has diversified its appeal. Pokhara is now home to upcoming universities and colleges that attract both domestic and foreign students. It has a growing manufacturing and service economy, a thriving construction industry and a slew of venues for adventure sports.It has an international cricket stadium, to which the Annapurnas provide a postcard-perfect backdrop. Soon, a spanking new airport will connect Pokhara directly to cities outside Nepal. In these days of global connectivity, can it also be a hub for young Nepali innovators and entrepreneurs?That was the question when I worked as a Pokhara University faculty two years ago. The university wanted to start a business incubation centre for its students, and was looking for ways to make it a successful undertaking by first making sure that the faculty was ready.Ecosystem before the species: Donor-funded micro and small business development programs have been training Nepali chicken farmers, beauty-parlour owners and the like at least since the late 1970s. Few of these showed success beyond the end of the public funding cycle.One reason was that the past generations of small-business development work did not focus on building up and strengthening the ecosystem for entrepreneurs to first survive and then thrive. They used public funds to train individuals--often in batches and for days on end. But they did not see their role in improving the business environment under which the entrepreneurs struggled and laboured for little gains.These days, universities, municipalities and other public-serving institutions need to add the task of building an entrepreneurial ecosystem to their to-do list. They can provide space with low or no rent for initial years, basic infrastructure such as the internet, electricity and water, subsidies for advising and mentoring services, seed funds to help the entrepreneurs start accessing other services that they need, and a network of local investors.Public institutions now know that paying for training services alone is not enough. They need to attract, work with and retain entrepreneurs akin to the federal government’s effort to attract and work with foreign investors. And much like in nature, where the right combination of water, oxygen and temperature helps species to grow and evolve to complexity, entrepreneurs flock to areas where the public institutions have first put in the basic elements of the entrepreneurial ecosystem in place.With its inviting weather and amenities, and its tourism-honed customer-service orientation, Pokhara should stand ready to strengthen its own ecosystem for domestic and foreign entrepreneurs.Can-do mindset over business jargon: Universities and public institutions are averse to taking risks. They aim to minimise failures. But entrepreneurship is all about learning from mistakes and failures so that success can eventually be maximised.If public institutions see entrepreneurship training as an exercise in creating ‘safe to experiment’ and ‘safe to fail many times and get back up’ spaces for students and innovators around their campus and the city, that resultant mindset alone would pay for several years’ worth of pricey MBA fees.Because of high upfront costs of starting a business, most Nepali entrepreneurs dare not fail. As such, they start small, take no risk, and remain small for years--hardly growing beyond the cottage-industry category.If a progressive city like Pokhara defrays the upfront cost of starting and running a business, say, for the first two years, a number of firms could potentially grow to scale, providing hundreds of jobs and other spillover benefits that would more than make up for the initial loss of the rental and income tax receipts.Without the ever-present worry to pay the government from the first month of starting their business, entrepreneurs would learn to calibrate risks and initial energy to maximise success, and not just play safe and remain small by design.Investments over grants: Both grants and investments are important for the growth of an entrepreneurial culture. But Nepali public institutions tend to give grants to individuals (especially in agriculture), but tell them to seek high-interest loans for basic infrastructure upgrades, when it should be the other way around.Pokhara’s public institutions can pay for the basic infrastructure (cold storage facilities, work-machines, etc), while encouraging entrepreneurs to seek equity investments by convincing those with money.More than public institutions, private investors have a better sense when it comes to deciding who to fund and who to let go. If public institutions pay for basic infrastructure while enabling private investors to bet on entrepreneurial teams, then this blend of public and private money minimises entrepreneurs’ start-up risks while their potential for success gets recognised. This is where Kathmandu has failed, and the opportunity is for Pokhara to take.In 2015, Korea’s Ministry of Science and Technology paid for the Nepal Innovation Technology &amp; Entrepreneurship Centre that got its start at Pokhara University, which will soon be handed over to the PU faculty. My conversation with the faculty two years ago was about how to run the Centre for its students.The level of ambition could be much higher: how to start and run a few such Centres across Pokhara to help innovators–students and others--launch and scale up their own businesses that take advantage of Pokhara’s hitherto untapped potential as a destination for entrepreneurs.Ashutosh Tiwari, founder at SAFAL Partners, writes this monthly column CrossCurrent in Nepali Times focussing on entrepreneurship, management, public policies and development as if Nepalis mattered.

Ashutosh Tiwari

Incubating Pokhara’s business ecosystem

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171156/636bdc6f9c7e80680e080316jpeg.jpg" alt="" width="1000" height="645"/><figcaption></figcaption></figure>Contrary to most predictions that remittances Nepali workers send home would fall with the Covid-19 crisis, the inflow has actually risen compared to last year.<a href="https://www.nrb.org.np/contents/uploads/2020/10/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Two-Months-data-of-2020.21.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.nrb.org.np/contents/uploads/2020/10/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Two-Months-data-of-2020.21.pdf&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNErhis4kw5CUS184-2F4jMJdAGnVQ">Figures from the Central Bank</a> for mid-July to mid-September show that Nepalis overseas sent back Rs165.73 billion, an 8.1% increase compared to the same two months of the previous fiscal year. Even in US dollar terms, this was $1.39 billion – a 2.6% growth.This defied the <a href="https://www.nepalitimes.com/editorial/high-risk-remittance/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/high-risk-remittance/&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNFvLGHDs_fFrT910N_vbu3w1Iea4Q">prediction of huge drops</a> in remittances due to the pandemic by Nepal’s Central Bureau of Statistics (18%), Asian Development Bank (28.7%) and the World Bank (14%).In the last fiscal year, remittance inflows actually dropped to Rs 875 billion from the preceding year. And this year, economic slowdown in countries where Nepalis work had led many to presume that their earnings would drop.Migration experts attribute the growth this year to many factors. Many migrant workers in essential sectors have continued to work and earn right through the pandemic, while others have been drawing on their savings to remit to their families, especially during festivals back home.As of the third week of October, 111,549 overseas migrants have returned via air, and an estimated 700,000 Nepalis returned from India, carrying their savings with them. Although many workers did go back to India because of the lack of jobs in Nepal, and the worsening Covid-19 situation here.Other reasons for the growth in remittances are the channeling of informal transfers to formal transfers due to travel disruptions, and the devalued Nepali rupees against the US dollar. While the post-festival period may give a more real picture of the trend in remittances, the <a href="https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNExkG-hE0xcjKjDKfs-aaRy-HYlAQ">persistence of the remittance</a> has provided respite to Nepali families across the country.World Bank has already revised its April estimates in its <a href="https://www.knomad.org/sites/default/files/2020-10/Migration%20%26%20Development%20Brief%2033.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.knomad.org/sites/default/files/2020-10/Migration%2520%2526%2520Development%2520Brief%252033.pdf&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNHJ9pXGczYAXUByrp6RinqZOfXhag">Migration and Development brief</a> released this week. Unlike the earlier outlook that indicated a sharp decline in 2020 followed by a modest recovery in 2021, the forecast for remittances now indicates a more gradual but prolonged decline continuing into 2021.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171156/636bdc729c7e80680e080317jpeg.jpg" alt="" width="1808" height="1422"><figcaption></figcaption></figure>The <a href="https://www.knomad.org/sites/default/files/2020-06/R8_Migration%26Remittances_brief32.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.knomad.org/sites/default/files/2020-06/R8_Migration%2526Remittances_brief32.pdf&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNFlxey6oVC4Es85h_w5zXspauf61g">April outlook projected</a> remittances to low and middle-income countries (LMICs) decline by 20% to $445 billion in 2020, whereas the revised estimates project remittances to fall by 7.2% to $508 billion in 2020 and 7.5% to $470 billion in 2021.The decline is attributed to weak economic growth that will dampen employment and earning prospects for migrants, weak oil price, and exchange rates of the currencies of remittance‐source countries against the US dollar.Remittances to South Asia are now projected to decline by around 4% in 2020 and 11% in 2021. V-shaped recovery that was anticipated in the initial days of the crisis is unlikely given that the pandemic is expected to last through 2021.At a country level, remittances are projected to fall by 9% in India and Sri Lanka and 12% in Nepal. Interestingly, the report projects an increase in remittances by 9% in Pakistan and 8% in Bangladesh, owing to the diversion of remittances from informal to formal channels because of travel restrictions and tax incentives in Pakistan for remittance transfers.The World Bank brief also points out that the relative importance of remittance flows as a source of external financing for LMICs is expected to further increase despite the fall in remittances. In 2019, remittances flows to LMICs were $548 billion compared to foreign direct investment at $534 billion and overseas development assistance (ODA) at $166 billion.This gap between remittance flows and FDI is expected to further widen, a trend that is particularly important for Nepal, where remittances was over 35 times the FDI and 5.5 times the ODA in 2019, making remittances a critical source of external financing.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171156/636bdc759c7e80680e080318jpeg.jpg" alt="" width="1690" height="944"><figcaption></figcaption></figure>To be sure, there are still a lot of unknowns and the forecasts may change again as the pandemic plays out because remittances will depend on the impact of Covid-19 on global growth which is linked to efforts to curb the spread of the pandemic.While migrants have been returning to India, migration to third countries has been slow to pick up. According to the <a href="https://www.nrb.org.np/contents/uploads/2020/10/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Two-Months-data-of-2020.21.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.nrb.org.np/contents/uploads/2020/10/Current-Macroeconomic-and-Financial-Situation-English-Based-on-Two-Months-data-of-2020.21.pdf&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNErhis4kw5CUS184-2F4jMJdAGnVQ">Nepal Rastra Bank report</a>, the number of Nepali workers who obtained new labour approvals has decreased by 99.2% in the first two months of the fiscal year while those renewing their contracts has decreased by 86.55%.As the World Bank brief notes, 2020 may become the first year in recent decades to mark an actual fall in the stock of international migrants as the number of new workers slows down.For Nepali workers in India, the situation is different. Hari Sharma made an <a href="https://www.nepalitimes.com/latest/the-long-journey-to-nepal/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/the-long-journey-to-nepal/&amp;source=gmail&amp;ust=1604125457209000&amp;usg=AFQjCNEUOWH3WfNzutDB4Ys66NQkuVCnOg">arduous journey</a> to Banke district Nepal from Ahmedabad at end of May. “It is better to die in my own country,” he told us then, as he traveled to the Nepal border on India’s Shramik train.Five months on, he is back in Ahmedabad with the same employer despite the Covid-19 situation in India. On the phone this week, he asked: “How will my family survive if I don’t migrate?”

Remittances from Nepali workers rise

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb449c7e80680e0802b5jpeg.jpg" alt="" width="564" height="368"/>The forest floor is full of dried leaves, mills throw away sawdust, and farms burn away agriculture residue. Now, a Nepali company has decided not to let waste go waste and turn this biomass into fuel pellets.Biomass pellets can be a clean and cheap energy source, and an alternative to firewood, petroleum products, LPG and coal -- all of which are unsustainable and harmful to health.<a href="https://www.bakas.com.np/aboutus/" data-saferedirecturl="https://www.google.com/url?q=https://www.bakas.com.np/aboutus/&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNH2OampiN7yQPEMXTPaK9uye73HAA">Bakas Renewable Energy</a> is planning to produce nearly 20,000 metric tonnes of biomass pellets every year for the Nepali market from its plant in Province 2, and help reduce Nepal’s petroleum import bill and improve public health by reducing air pollution.This week, Bakas signed a loan agreement with NMB Bank for debt financing of Rs160 million. Bakas was founded by Nepali forestry and environmental professionals who believe in a sustainable energy future for the country.<a href="https://www.google.com/search?client=safari&amp;rls=en&amp;q=BO2+nepal&amp;ie=UTF-8&amp;oe=UTF-8" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/search?client%3Dsafari%26rls%3Den%26q%3DBO2%2Bnepal%26ie%3DUTF-8%26oe%3DUTF-8&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNFaIuUPX68P_WAx0ORg95B7BIO_Ww">Business Oxygen Pvt Ltd (BO2</a>) is making an <a href="https://www.nepalitimes.com/opinion/so-youd-like-to-do-business-in-nepal/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/so-youd-like-to-do-business-in-nepal/&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNGdmhi6QrTIu-Wn8T_slkaiRb5y-A">equity investment</a> of Rs50 million for developing the biomass pellet project at Ishworpur of Sarlahi District. BO2 is Nepal’s first international Private Equity Fund with a climate focus promoted by International Finance Corporation (IFC). The remaining Rs50 million investment will come from promoting shareholders.Most of the raw material for production are sourced from the forest floor of Sagarnath Forest Development Project based on the agreement with Forest Products Development Board. Dried undergrowth is inflammable and one of the reasons for forest fires in the Tarai. More than 80% of Nepalis still <a href="https://www.nepalitimes.com/opinion/no-smoke-without-fire/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/no-smoke-without-fire/&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNHsNtRHAo8RF8m5_xNGc25556ORHQ">depend on biomass</a> for energy, much of it goes waste.The rest of the raw material is farm residue, saw dust and agriculture waste. Bakas says collection and processing of the raw material will create jobs for local communities, mostly women and disadvantaged groups. The pellets are marketed and sold to brick kilns, cement and other industries that need energy for heating or cooling.“This is an exciting project that assists adaptive resilience and will help the economy with clean energy in numerous ways including being a substitute for coal,” said <a href="https://www.nepalitimes.com/opinion/also-keeping-financially-healthy-in-a-lockdown/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/also-keeping-financially-healthy-in-a-lockdown/&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNFJOMej18TG3wyAG0dKSuhcofl0WQ">Siddhant Raj Pandey</a>, CEO of BO2 at a virtual signing ceremony on Monday in Kathmandu.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb469c7e80680e0802b6jpeg.jpg" alt="" width="564" height="374">Bakas is the first company to produce biomass pellets on an industrial scale in Nepal, and it says the green fuel that is easy to store and handle, and is a proven technology globally for domestic heating, electricity generation and outdoor heating."This project is highly relevant to Nepal because it helps emission reduction caused by forest fires, reduces industrial use of coal and fossil fuels as well as provides employment to the poor and vulnerable people living in neighborhoods of the forest area," said Santosh Mani Nepal, Chairman of Bakas Renewable Energy.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb489c7e80680e0802b7jpeg.jpg" alt="" width="640" height="396">He said the idea for the project came from managing director Kuber Mani Nepal during the 2015 blockade, when Nepalis did not have LPG and other fuels. Biopellets were a feasible alternative that could be made abundantly available and reduce dependence on imported fossil fuel.BO2 has also backed another renewable energy project, <a href="https://www.nepalitimes.com/banner/this-is-bullshit/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/this-is-bullshit/&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNHDg9057P76So1InmACi8SBFasrxw">Gandaki Urja in Pokhara</a>, which provides compressed biogas in cylinders, and turns the effluent from its industrial scale digesters into organic fertiliser.Sunil KC, CEO of <a href="https://nmbbanknepal.com/" data-saferedirecturl="https://www.google.com/url?q=https://nmbbanknepal.com/&amp;source=gmail&amp;ust=1603264033011000&amp;usg=AFQjCNGSewpYVD1ExYGFs8490hwK7efXEg">NMB Bank</a> said he was excited about being part of a project to reduce Nepal’s carbon emission from coal and fossil fuels and promote renewable energy. NMB is a member of the steering committee of the Partnership for Carbon Accounting Financial from Asia and a member of Global Alliance for Banking on Values.He said: “Our business model focuses on sustainable and value-based banking projects encompassing renewable energy projects, agribusinesses and projects focused on environment preservation. We are certain that the biopellet project will provide long term sustainable livelihood at the grassroots.”

Not letting waste go waste

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171148/636bda669c7e80680e080268jpeg.jpg" alt="" width="1267" height="950"/>Andy Chong was appointed CEO/MD of Ncell in November 2019 and has been with the Axiata Group since 2008. He has held top management positions in Malaysia, Singapore and Indonesia. Chong is a cycling enthusiast and spends weekends exploring the terrain around the Valley and is interested in discovering challenging routes across Nepal. He spoke to Nepali Times this week about telecommunications during the Covid-19 crisis.Nepali Times: Economic activity has come to a standstill globally, yet the telecommunication business appears to be least affected. Is this also the case in Nepal?Andy Chong: It is true telecommunications businesses have been more resilient than many other industries which have been impaired by as much as 95%. For Ncell, while we are in a relatively better position compared to other big businesses, the telecoms are not spared. Telecommunication is a utility to a large extent, and during times like this, access to communications, content, services, entertainment are almost uniquely channeled via data connectivity has been heightened. In Nepal, telecommunications network utilisation has increased by more than 40%. However, the impact of increased use of services with people living at home and working from home has not translated to higher revenues.Telecom companies were compelled to provide this essential service at subsidised rate to ensure our customers had connectivity during lockdowns. For example, we provided 120% bonus on top up, increased saapati amount, made balance transfer service available for free, provided 25% discount in data service, among others.Has there been a slowdown in Ncell's growth in terms of customers as well as profit?During the lockdown data traffic had jumped up by 40%, while overall income declined by 35%, and we believe the same was the case with other telcos. With easing of lockdown there is sign of some hope with business recovering to 28% of pre-lockdown levels. Yet, this will take some time to reach to normalcy.It is evident that consumer consumption behaviour has changed – we saw substantial shift from voice usage to data during the lockdown. We have continued to invest in our data carrying capacity throughout the last eight months.As many as 1 million Ncell customers stopped using their services after lockdown which, we assume, is due to unemployment. Only 3% of our PoS were opened during the lockdown which affected our business and when the government eased lockdown, around 25% of PoS were re-opened.  This has a direct correlation to the recharge activities of consumers.I do not foresee businesses including ours, will return to pre-covid normalcy in the next 9 to 12 months. The impact has dug deep into the structure of Nepal’s economy and will need a longer runway to recover, which at least for our industry, will follow a moderate L-shape. It will be a good outcome if all of us recover to within 90% of pre-covid levels before end 2021. We will be fortunate if we can get back to 80%-90% of normal business of pre-pandemic within next one-and-half years.How do you see the future grown of the telecommunication sector in Nepal, and your own market share?We will give priority to digitalisation of our key business areas as much as we can so when we get out of the pandemic, we are ahead of the curve and better able to serve our customers.Our business strategy remains on track and investments as planned remain unchanged. We are going to be data oriented. Nepal is not ‘digital’ enough today – both from a supply and demand perspective. Had Nepal been up the curve in terms of its digital economy, the impact would have been lessened with easy access to services for customers.Various challenges including impact of COVID impacted Ncell’s performance as July YTD20 revenue (ex-device) declined 22.5%, affected by drops across voice, data and ILD. EBITDA slid 31.9% due to revenue decline coupled with higher network cost. Contribution of data in total revenue has increased to 24% in the Q2 from 22% of FY2019.Data is the future and there is significant opportunity for growth as Nepal embraces a digital future. Share of data in revenue of telecom companies have been increasing every year whilst voice remains relatively constant. We aspire to be a digital telco and strategy is data-centric, which for enterprises, we hope to be first choice of Nepali businesses to help them achieve their aspiration.Any plans to introduce 5G in Nepal?We want to rollout our 4G nationwide but that is a function of spectrum. We will require multiple frequencies – both for capacity enhancement and for expansion of coverage We launched 4G in June 2017 and expanded it to all provinces of Nepal.Spectrum in 900MHz is required to deliver population coverage. We have 54% 4G population coverage and as soon as we awarded technology neutral spectrum in this band, we will be able to expand 4G coverage to 90% of population coverage, so we will continue to investment in expanding our network.With spectrum in 1800MHz band that we secured in December, we will give depth of 4G coverage to deliver higher data speeds and capacity within the coverage area. But to serve wider geography, we need technology neutral spectrum in 900MHz – we are hopeful this will be resolved soon so we can better serve consumers with 4G services.So, for 5G, we would welcome Nepal Telecommunications Authority’s leadership in setting up industry consultations to ensure timely availability. From our point of view this will likely be post implementation of 4G nationwide.Limited competition has been cited as the reason for high cost for calls and data in Nepal. How do we compare with other countries in the region?For making the data service cheaper and profitable, spectrum is needed to expand further to the rural areas. Data price had dropped significantly after the launch of 4G. Cost of the voice has already come down and consumers are now concerned about data although they have alternatives – non-mobility data from their ISPs.For example, in our Axiata operations in Cambodia can produce per GB data at a cost of 15-16 cents. But here in Ncell, due to the lack of sufficient spectrum, our per GB production cost approximately 70 cents. But for many of our data packs, our retail price per GB is well below 70 cents today. Therefore, to deliver lower price points to consumers, operators must be provided enough spectrum to lower its cost of production.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171148/636bda6b9c7e80680e080269jpeg.jpg" alt="" width="640" height="480">As the biggest foreign investor in Nepal today what needs to be done to attract more foreign investment into the country?For a developing country like Nepal, Foreign Direct Investment (FDI) plays a vital and direct role in ensuring economic growth and prosperity in terms of capital formation and technology transfers. Ease of doing business within the country has to be facilitated. Political stability, infrastructure availability, facilitation from government, bureaucracy, and the overall political climate must be supportive for foreign investors.The Foreign Investment and Technology Transfer Act, amendment to the Industrial Enterprises Act, Special Economic Zone Act and Public Private Partnership and Investment Act came into force in the past two years. As one of the biggest foreign investors in Nepal, we take pride for being one of the highest tax payers of the country. From the time of its inception till date, Ncell has paid over Rs240 billion in taxes to the government, with Rs30.22 billion just in the last fiscal year.Our direct and indirect contribution to the country’s GDP stood at 2 percent in 2018/19. As a committed investor in Nepal, we have made a substantial investment in infrastructure for service expansion and enhancing quality. We put in Rs32-35 billion annually in capex and opex investment that directly or indirectly drive the economy. Infrastructure such as telecommunications have strong links to growth, poverty alleviation and environmental sustainability.Through our investments, we have introduced new technological solutions that has resulted in positive externalities such as direct economic benefits via employment, affordable means of communications resulting in social and economic benefits for our customers, better provision of social services like education and health, decentralisation and integration processes, human welfare and overall economic development.We have created employment opportunities for more than 90,000 people. Increased investment from company like Ncell will contribute to expand the overall infrastructural base of the country and further support National Digital Nepal 2020 initiatives.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171148/636bda6e9c7e80680e08026ajpeg.jpg" alt="" width="640" height="853"><figcaption>Ncell's CEO Andy Chong cycling in Mustang. He is an avid cyclist and spends weekends exploring the terrain around the Valley and is interested in discovering challenging routes across Nepal. Photo: ANDY CHONG</figcaption></figure>Ncell has been actively supporting social causes. What are some of the highlights?As part of our CSR, we have invested over Rs900 million with focus on education, health and environment like setting up Telemedicine andHealth Informatics Centre in collaboration with Kathmandu UniversityHospital in Dhulikhel to serve remote and underserved communities through quality health care using technology and data-driven health care methods.We are establishing modern digital labs in 60 community schools across the country in collaboration with Ministry of Communication and Information Technology. We have been working closely with the Ministry of Health and Population as an exclusive partner to raise health awareness. As part of it, we are currently engaged in Covid-19 information campaign with UNICEF support.We have collaborated with the Department of Forest and Soil Conservation and have begun greening of the 10km Ring Road stretch from Koteswor to Kalanki. We thank our 16 million customers for their continuous support. We are committed to providing you with a dependable service no matter what the circumstances are. We have been and will continue to support and work with government bodies and the private sector in Nepal in addressing this crisis, and we must remain vigilant, be patient and stay safe.

Nepal’s data-centric future beyond Covid-19

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171144/636bd96a9c7e80680e080211jpeg.jpg" alt="" width="2880" height="1920"/><figcaption>Anirvan Ghosh Dastidar, Chief Executive Officer for Standard Chartered Bank in Nepal.</figcaption></figure>Meet Anirvan Ghosh Dastidar, Chief Executive Officer for Standard Chartered Bank in Nepal. Before arriving in Kathmandu last year, he served as CEO of bank in Brunei, Philippines and Sri Lanka. Nepali Times spoke to him about the current Covid-19 crisis and its impact on financial systems worldwide and in Nepal.Nepali Times: What is your assessment of Nepal's macro-economic situation and the risks to the banking sector? Anirvan Ghosh Dastidar: Nepal’s GDP composition is largely driven by the service sector which amounts to more than half of the total output. The pandemic has rapidly slowed down this sector which maybe causing majority of the aggregate demand subdue. A slowdown in services also means both consumption and production would be impacted since interlinkages between services, agriculture and manufacturing are very high in our economy. Though it may seem on the outside that Nepal’s economy is only consumption led – Nepal’s interlinkages to the global economy on both demand and supply drivers are very high. This also is one reason that the credit demand is quickly picking up after the lockdown was lifted which can be seen from the CCD ratio – since Nepal’s economy is dependent on drivers that may not need so much time for recovery like remittances and the service sector to drive majority of the demand, and, imports to drive majority of the supply.Banks in Nepal are directly impacted by how the economy performs since there are no complex financial instruments in the system that stabilise or delay the impact of economic shocks. Most real GDP economic forecasts for Nepal have relied on a few assumptions: there will be localised lockdowns only until the end of 2020 and cases will gradually decline, economic activities will gradually return to normal starting 2021. Forecasts based on these assumptions estimate Nepal’s real GDP growth to be between 2 to 2.5% for 2020. I have a similar assessment for Nepal’s macroeconomic situation: if there is no second wave and there only are local lockdowns until the end of 2020 – Nepal will gradually go into the recovery phase and it will be quick due to the drivers of our economy.Nepal Rastra Bank has allowed rescheduling and restructuring loans, would this provide relief or just postpone the problem given that economic activity is not picking up? This would be completely dependent on how the economy would recover. If there is no recovery of economic activity, given a subdued demand, the problem would be there irrespective. In this case, there is no other option but to reschedule and restructure loans with an expectation that in the recovery phase things will get back to normal – this trend can be seen across the world, not only in Nepal. I think the factor causing the problem here should be understood well – the Central Bank Policy has in no way got to do anything with the problem, in fact these regulations are there by definition to ease the burden for all stakeholders in the system. The problem is external, which is dependent on market forces and these factors are beyond anyone’s control given the global pandemic. I am in fact appreciative of the efforts Nepal Rastra Bank has taken to stabilise the negative economic impact caused by this crisis – the impact would have been much worse if it were not for the effective actions of our Central Bank.There was always a chronic liquidity crisis among Nepal's banks, but that is not the reality now. Would this not be a time to prime up investment? This is largely dependent on what you are investing in. However, on a broader scale, trying to invest now just because there is liquidity and prices of certain markets are low, would be a myopic view – one might also argue that interest rates are down so credit is cheaper. However, I think the fundamental laws of the markets and economics cannot be ignored. As long as the economy is down, so is the aggregate demand. When aggregate demand is down, an overall subdue in economic activities is bound to exist – this is a vicious cycle. Having said that, Nepal’s economy is slowly picking up because of an ease in the lockdown, but not in all sectors. I would thus say investment decisions would depend more on the sectors involved. The same time maybe prime for some sector and some investments, when it is not for some.Do you see the possibility of mergers of financial institutions during this crisis? There is no straightforward answer when it comes to mergers of financial institutions, and there are various academic arguments on various variables from economies of scale, synergy, efficiency of the industry, quality of assets and returns of the market the financial institutions are operating in. The sky is the limit for these variables. One can add the geographic argument and build a spatial model, one can also argue that traditional models miss the current trends of digitisation or new trends in the economy which may also have different implications to the debate and add these variables. Arguments also differ because of the tools and models which are used to analyse these variables – ranging from Optimized Mathematical Game Theory Models, Time-Series Econometric Models to even Economic General Equilibrium Models. Therefore, commenting on the possibility of mergers is very complicated and this should be based on various factors that are important to the market and industry in question. Ultimately, however, there are fundamental rules always govern any banking industry: a bank needs to be profitable to sustain and should comply with the rules laid forward by the Central Bank.What would be Standard Chartered’ s strategy to ride out this crisis, and indeed see it as an opportunity for expansion? There was an interesting article in <a href="https://hbswk.hbs.edu/item/why-japan-s-businesses-are-so-good-at-surviving-crises">Harvard Business Review</a> on the Japanese way of dealing with a crisis which points towards a long term outlook of the society a business operates in. This article argues that the more we contribute towards the overall development of the economy and communities in the economy, the more we benefit. I think our purpose also follows the same concept which includes a focus on the long-term prosperity and economic development of Nepal which in-turn has a direct relationship to the banking industry’s health. We are committed to the sustainable growth priorities of Nepal and are focused on helping businesses and communities revive post Covid-19.Having said that we have had our share of learnings during the pandemic and we have already devised plans to refresh our operating models. Our plans are geared towards enhancing our digital capabilities to support clients with their banking needs. We also feel, as have many institutions internationally, that our operating model will also consist of a refreshed health and safety standard where there will be a certain element of working from home even after the Pandemic. I think our focus is more towards supporting our clients recover from this crisis and keeping our colleagues safe, more than expansion.

“We are focussed on post-Covid revival of Nepal’s business”

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141136/636bad589c7e80680e077f8bjpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Nepali Times issue #1</figcaption></figure>The <a href="http://himalaya.socanth.cam.ac.uk/collections/journals/nepalitimes/pdf/Nepali_Times_001.pdf">#1 print edition</a> of Nepali Times of <a href="http://archive.nepalitimes.com/issue/1">19-25 July 2000</a> shows that even though much has changed in Nepal in the past two decades, a lot has remained the same. Plus ça change, plus c'est la même chose. Reports and op-eds published in that very first hardcopy issue are as relevant today as they were then. Most of the protagonists are the same.The <a href="http://archive.nepalitimes.com/news.php?id=10979#.XxAi8KEza70">front page analysis</a> of the first edition looked at the impending state visit to India by Prime Minister Girija Prasad Koirala. Among the contentious issues he was going to take up with Indian Prime Minister Atal Behari Vajpayee: the Kalapani territory occupied by India. The dispute flared again this year, and sank bilateral ties to a new low.Then, as now, the Indian media had been primed before Koirala’s visit with official leaks about alleged infiltration by Pakistani agents to ‘turn the Tarai into Taliban territory’. The allegations were included in an Indian intelligence report ‘Nepal Gameplan’, and our report said that Koirala’s challenge would be to use his personal chemistry with Vajpayee to convince him that Nepal would not allow any extraneous threats to India from its territory.Both Koirala and Vajpayee are long gone, but India-Nepal relations are still strained —this time over suspicions of growing Chinese influence. The same issue of Nepali Times had an <a href="http://archive.nepalitimes.com/news.php?id=10983#.XxAjfqEza70">interview with UML General Secretary Madhav Kumar Nepal</a> on page 3 in which the opposition leader said: “What is surprising is that Koirala is the same person who said he would not visit India until Indian troops are withdrawn from Kalapani, and he is rushing there.”<a href="http://archive.nepalitimes.com/news.php?id=10980#.XxAjxaEza70">The Editorial</a> of the first print edition of Nepali Times laid out what would be the new paper’s mission statement: ‘A newspaper does more than hold a mirror to society. It becomes a mirror itself. There is a belief that literature is generally not read, and journalism is often unreadable. This newspaper will seek to be informal, lively, clear and direct.’In his column <a href="http://himalaya.socanth.cam.ac.uk/collections/journals/nepalitimes/pdf/Nepali_Times_001.pdf">‘State of the State’, C K Lal</a> lamented the cynicism in Nepali society: ‘Despair hangs as thick as diesel exhaust in the Kathmandu air. Nepal’s nabobs of negativism hold forth in their nay-saying nooks. Cynicism is at least a reflection of exaggerated self-worth. Despair is much worse, it is a state of having lost all hope.’ Locked down for four months, Nepalis are once more drifting from cynicism to despair.The first issue also included <a href="mes.com/news.php?id=10990#.XxAk86Eza70">an investigation</a> into a scandal at the Kathmandu office of the UN Population Fund (UNFPA) in which an expat official was secretly sacked for embezzlement. Reporter <a href="http://archive.nepalitimes.com/news.php?id=10992#.XxAlC6Eza70">Hemlata Rai</a> wrote about how grassroots democracy was beginning to deliver health, education and other services.Another <a href="http://archive.nepalitimes.com/news.php?id=11001#.XxAlLqEza70">intriguing story</a> was about reports that underground Maoist leader Prachanda had visited UK on an Indian passport to attend a meeting of the Revolutionary International Movement (RIM). Water resources expert <a href="http://archive.nepalitimes.com/news.php?id=11082#.XxAlSKEza70">Dipak Gyawali</a> argued in a commentary that it made more sense for private power producers in Nepal to design projects to sell electricity for domestic value-added use than exporting it to India.COVID-19 is the main global health issue today, but 20 years ago it was HIV/AIDS, and the paper carried a report on anti-retrovirals not being affordable to people in poor countries.<a href="http://archive.nepalitimes.com/news.php?id=11090#.XxAmmqEza70">Manjushree Thapa</a> started her column Nepaliterature in which she profiled writers in the Nepali language with translated excerpts of their work. The July 2000 issue had these lines from Bimal Nibha:Comrade Baburam Bhattarai is busy leading the People’s WarI, dragging along my broken slippersAm wondering —as are many othersI’m an ordinary person who writes the news who writes poemsWho drinks tea and rushes offA worker who delights and weepsWith ardor and effort (nothing exceptional about me)Am I not also engaged in a people’s war, Comrade?Nepali Times also got rights to serialise chapters from <a href="http://archive.nepalitimes.com/news.php?id=11089#.XxAlmqEza70">Desmond Doig’s</a> book In the Kingdom of the Gods, and the first installment carried his description of Jang Bahadur’s Mughal-style Kal Mochan temple, which a western visitor once said was ‘too ugly to describe’.The <a href="http://archive.nepalitimes.com/news.php?id=11099#.XxAmBKEza70">Funny Side Up</a> satire column became a fixture on the back page with the first one on legalising corruption. Taxing bribes and slapping 13% VAT on baksheesh, it was suggested, would be a good way to raise government revenue.From this week, the ‘10 Year Ago’ column in Nepali Times will be ‘20 Years Ago’. It will look at Nepal from two decades ago, and how the country was getting mired deeper in conflict, political disarray was eroding democratic gains, tourism was being affected by the uncertainty.The COVID-19 lockdown is a fitting time for a retrospective – when the media itself is facing a crisis of survival. The media in Nepal has historically been threatened by the extreme right and the extreme left. It had survived the economic crises during the earthquake and Blockade. Legacy media was trying to cope with the digital transition. But never  has it had to face such an existential crisis.  There are serious implications for journalism as well as for an open society.As the past two decades show, journalism is indeed history in a hurry. And those who do not learn from it are doomed to repeat it.The content of the past 20 years of <a href="https://www.nepalitimes.com/latest/nepal-grapples-with-bringing-workers-home/">Nepali Times</a> is available in a searchable archive. The ePaper can also be accessed by issue through the <a href="http://www.digitalhimalaya.com/collections/journals/nepalitimes/">Digital Himalaya</a> site.

Kunda Dixit

20 years ago this week

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101124/636b71f99c7e80680e0600fejpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo : KHAALISISI</figcaption></figure>Real entrepreneurship is about innovation, executing ideas, consistency, not giving up easily and not worrying too much about finding investors immediately.Prospective entrepreneurs do not need an MBA from an expensive international university: they start with a great idea and a bit of money, and they set about implementing the idea step by step.Young entrepreneur Aayushi KC is a good example of this. She quit a secure job at an international aid agency to start her own company, Khaalisisi Management. Khaalisisi uses a digital platform to link garbage sellers and buyers for waste transactions. It was an unusual idea, and many thought KC had lost her mind.Read Also: <a href="https://archive.nepalitimes.com/article/nation/a-load-of-rubbish-kathmandus-garbage-problem,4039" target="_blank" rel="noopener">A load of rubbish,</a> Sahina Shrestha<a href="https://archive.nepalitimes.com/article/nation/making-money-from-garbage-in-kathmandu,2055" target="_blank" rel="noopener">Rupees from rubbish,</a> Sahina Shrestha“Every time I shared my idea, people laughed and ridiculed me. Nobody had done this kind of business before and so everyone was sceptical,” she recalls. But she was determined to use this sustainable business solution to clean up Kathmandu.It wasn’t easy, as KC had no technical background on information technology, recycling waste or garbage management. All she had were the facts and a motivation to make her idea work.She did her own research and met experts and people who were already recycling garbage. And it was after meeting Kathmandu’s waste collectors that KC learnt how <a href="https://archive.nepalitimes.com/article/nation/recycle-reuse-reduce-garbage-kathmandu,1279" target="_blank" rel="noopener">waste management</a> works in practice.https://www.youtube.com/watch?v=ihLCphyeO6o&amp;t=6sThere are about 13,000 collectors in Kathmandu alone, and there was already a network of people managing waste by recycling in their own way. KC decided to partner with them.“They are the real waste entrepreneurs who deserve to be respected and the society needs to dignify their hard work and not disrespect them,” says KC. She shares that one of the best rewards for her is to see collectors get more respect after they started working with Khaalisisi, which provides them with uniforms and ID cards. The company employs 300 collectors, who are known as Khaalisisi Friends.Read Also: <a href="https://www.nepalitimes.com/opinion/returning-to-nepal-has-its-rewards/" target="_blank" rel="noopener">Returning to Nepal has its rewards</a>, Naresh Newar<a href="https://www.nepalitimes.com/opinion/rupeshs-epic-journey/" target="_blank" rel="noopener">Rupesh's epic journey</a>, Naresh NewarThe way it works is this: Khaalisisi connects the collectors with waste sellers through the Khaalisisi digital platform, social media and phone apps. Waste sellers, mostly city residents with a lot of trash, contact the Khaalisisi team for a pick-up. The company then contacts the waste collectors, who make house calls to purchase the waste. Recyclables are then sold on the market, and Khaalisisi gets a commission.This process has apparently helped waste collectors increase their incomes. They no longer need to roam neighbourhoods on their bicycles, shouting to attract the attention of residents.In just three years, Khaalisisi has become a recognized brand gaining popularity in Nepal and abroad for its novel approach to sustainability. In 2018, Forbes listed KC in its 30 Under 30 Social Entrepreneurs, selected from thousands of online nominations. In December she was one of the top five youth social entrepreneurs out of 1,000 competitors from 90 countries to speak during the World Bank Youth Summit in Washington DC. The Asia Society also included her as one of the 2019 Class of Asia 21 Young Leaders.“This is a business-for-profit initiative, but as a company we also have a social responsibility to educate people on how to manage their own waste and create a better environment starting with our own neighbourhoods,” says KC, whose team also visits schools to urge them to manage their own waste. The government also needs to step in to give incentives to people who actively reduce, recycle and reuse, she says.Khaalisi and other business initiatives involving waste management are gaining traction as awareness grows worldwide about sustainability, environmental degradation, plastic pollution in the rivers and seas and the climate crisis.“There was nothing extraordinary about our business idea. We all have great ideas but they will come to nothing if we fail execute them. I acted on a simple idea and that was the starting point to build this company,” says KC, now 30.Read Also: <a href="https://www.nepalitimes.com/opinion/staying-in-nepal-to-create-jobs/" target="_blank" rel="noopener">Staying in Nepal to create jobs</a>, Naresh Newar

business