Hello and Namaste from Nepal!

We’re thrilled to bring you our latest edition of Nepali Dias Express, your trusted weekly digest of what’s happening back home, why it matters, and how it connects to Nepalis living around the world.

🇳🇵Nepal Highlights

1. That Hydropower IPO Your Uncle Told You to Buy? It Might Be a Scam.

If you're in any Nepali group chat, you've seen the message: "Apply for this hydro IPO! Desh banaune mauka!". It feels like a national duty with a side of quick profit. But economist Swarnim Wagle is waving a giant red flag, warning that this patriotic IPO boom looks suspiciously like the cooperative scams of the 2000s. The game, it seems, isn't about generating power; it's about insiders inflating costs, pocketing loan money, and then using your IPO investment as their personal exit strategy. By the time you buy your Rs. 100 share, the real money has already been made. This matters because it's your remittance money and your family's savings being used as fuel for this "legal heist."

2. The Great Spanish Escape: Turning a UN Conference into a One-Way Trip

In a story that could only happen in Nepal, some individuals who traveled to Spain for a UN conference, decided they liked the tapas and sunshine a little too much to come back. The government is now officially investigating who went missing. The spokesperson was quick to clarify that the Prime Minister didn't leave anyone from his official delegation behind, which is a bit like saying you didn't lose your keys, they just decided to stay in someone else's car. While it’s funny on the surface, it’s a national embarrassment that makes it harder for every genuine Nepali traveler to get a visa. Spain, meanwhile, has gained some new, highly motivated residents.

3. Your Money, Explained: NRB's New Rulebook Is Here

Nepal Rastra Bank has unveiled its new monetary policy, which basically serves as the country's economic rulebook for the year. In human terms: it’s now cheaper to get a home loan, easier to borrow against your shares, and a crackdown on sketchy financial practices is coming. Think of Nepal’s economy as a car that’s not broken but is stuck in neutral; the NRB is trying to give it a gentle push.

Here are the highlights that matter to you:

• For Homebuyers: You can now borrow up to Rs. 3 Crore for a house (up from Rs. 2 Crore) and only need a 20% down payment for your first home.

• For Stock Traders: The limit for borrowing against your shares (margin lending) has been boosted from Rs. 15 Crore to Rs. 25 Crore.

• For the Digital Savvy: NRB is officially paving the way for Neo Banks (fully digital, branchless banks).

• The Spicy Bit: They've promised to "ease" rules on dividend repatriation for foreign investors. This is raising eyebrows, with many remembering the Nabil Bank-NB Holdings saga where dividends were frozen over suspicions of round-tripping. We’ll be watching to see who this "easing" really benefits.

4. The 2.5 Million Signature Salute for a Jailed Leader

While its chairman, Rabi Lamichhane, serves a jail sentence for cooperative fraud, his party (RSP) has been anything but quiet. They’ve launched a massive signature campaign framing his conviction as political revenge, collecting a staggering 2.5 million signatures so far. Now, they’re taking the campaign door-to-door and even setting up "solidarity desks" at major border crossings. This is a massive show of political force, demonstrating that even with its leader behind bars, the RSP remains a potent entity capable of rallying huge numbers, and highlighting the deep polarization in Nepali politics today.

🌐 Global Updates

While things were dramatic back home this week, the rest of the world wasn't exactly sitting still. From political flare-ups in our neighborhood to mind-boggling deportation policies, here's a roundup of what you might have missed.

1. The U.S. Is Now Deporting Immigrants to Countries They’ve Never Been To

And now for a story that sounds like it was written by a satirist. The Trump administration has expanded a largely secretive program where it deports immigrants convicted of serious crimes to third-party countries, nations where they have zero ties.

The latest episode saw five men (citizens of Vietnam, Jamaica, Cuba, Yemen, and Laos) put on a plane and sent to the small African kingdom of Eswatini (you might remember it as Swaziland). US Homeland Security described the men as "uniquely barbaric" criminals whose home countries refused to take them back.

Eswatini, a tiny absolute monarchy, seemed a bit bewildered by the arrival of their new "inmates," issuing a statement that the men are considered "in transit" and that they will work on a "repatriation process" to their actual home countries. It’s a bizarre game of global hot potato, raising huge questions about international law and human rights. For immigrant communities everywhere, it’s a chilling development: what happens when your own country won’t take you back, and another country can just send you somewhere else entirely?

2. Israel Unleashes Airstrikes on Damascus Over Sectarian Conflict

The Middle East just got even more complicated, if that was even possible. Israel has launched a major series of airstrikes on Damascus, reportedly blowing up part of the Syrian defense ministry. The reason? To protect the Druze minority in southern Syria.

Here’s the breakdown of this geopolitical mess:

• Syria’s new Islamist-led government sent troops to quell fighting in the predominantly Druze city of Sweida.

• Instead of calming things down, the government forces ended up clashing with Druze militias.

• Israel, which has a significant and influential Druze population of its own, decided to send a very loud, explosive message by bombing Damascus, vowing it will not let Syria’s new rulers harm the Druze.

The United States has stepped in to play referee, with Secretary of State Marco Rubio claiming a deal was reached to "end this troubling and horrifying situation tonight." Meanwhile, hundreds have been killed in the fighting, and the situation remains incredibly tense. It’s a textbook example of how a local, internal conflict can quickly spiral into a major international crisis.

3. Violence Flares in Bangladesh as Youth Rally Turns Deadly

Just next door in Bangladesh, the fragile political peace has shattered once again. A youth-led rally in Gopalganj turned violent, leaving four people dead. This comes almost a year after massive student protests forced long-time Prime Minister Sheikh Hasina to flee the country. The interim government, led by Nobel Peace laureate Muhammad Yunus, is struggling to hold things together amidst delays in promised reforms.

Yunus was quick to blame the violence on Hasina's old party, the Awami League, calling it a "shameful violation" of fundamental rights. The Awami League, in turn, claimed one of its own members was killed. The political blame-game started faster than you can say 'hartal,' and authorities have imposed a curfew. It’s a stark reminder of how quickly political transitions in our region can turn ugly, and how the shadow of old power struggles looms large.

That's your whirlwind tour of the world for this week. It seems chaos, political finger-pointing, and mind-boggling policies aren't unique to Nepal after all.

On to our Deep-Dive for today!

🔍Deep Dive For The Week

Two Taxpayers, One Broken System

Two Nepalis. Both living in Kathmandu. One works for a foreign company. The other for a local one. Same job, same effort, equal salary. But one pays just 5% tax, and the other? Up to 39%. Sounds fair?

You’ve seen it on your LinkedIn feed, we’re sure. "Nepal: The Next IT Powerhouse!" "The Rise of the Remote Workforce!" It's all true, and it’s fantastic. We’re proud. The government, in its infinite wisdom, even rolled out some policies to fan the flames, such as 5% final tax rate for freelancers, and 5% corporate tax rate for export-based IT companies.

And that is where our story begins. Because what started as a good idea is now creating a situation so weird, it could only happen in Nepal.

We're accidentally building two different countries for people living in the very same one. It's a tale of two taxpayers, and it's starting to feel less like a smart economic policy and more like a script for a black comedy.

So grab a coffee, and let's get into it.

A Tale of Two Cousins: The Freelancer and The Office-Goer

Let's paint a picture. Imagine two cousins, Samir and Sunita. Both are brilliant software developers in their late 20s, living in Lalitpur. Same skills, same drive, same love for momos.

First, meet Samir.

Samir is living the dream. He works for a tech company in Germany founded by an NRN, a job he landed through an online platform. His biggest commute is from his bed to his desk, a grueling 10-second journey. He takes Zoom calls in his favorite pajama pants and his German colleagues are none the wiser.

He earns a cool €2,500 a month, which translates to a handsome NPR 500,000 per month. Annually, that’s a whopping NPR 6,000,000.

Because Samir earns in foreign currency, he qualifies for a special tax provision. He pays a flat 5% tax on everything he makes.

Let’s do some quick, slightly depressing math:

• Annual Income: NPR 6,000,000

• Annual Tax (at a breezy 5%): NPR 300,000

• Samir’s Net Take-Home Pay: NPR 5,700,000

Samir is a hero. He’s bringing dollars (well, Euros) into the country. He’s a walking, talking success story. We love Samir.

Now, let’s meet his cousin, Sunita.

Sunita is also a star developer. Sunita is also a star developer. But she works for a company started by another Nepali from the diaspora, one who took the "Invest in Nepal" slogan to heart. 

This founder felt patriotic enough to set up their company in Nepal, going through the whole bureaucratic saga to do it "the right way."

So Sunita braves the Kathmandu traffic, navigates office politics, and has to actually wear real pants to work.

Her company, wanting to retain top talent like her, matches Samir’s salary. They pay her NPR 500,000 per month. An annual package of NPR 6,000,000.

But here’s the kicker. Because Sunita works for a proper, tax-paying company registered right here in Nepal, she falls under the standard tax system.

Let’s do her math. Brace yourself.

• Annual Income: NPR 6,000,000

• Annual Tax (climbing up the progressive slabs to 36%, plus a bit more for good measure): Roughly NPR 1,850,000

• Social Security Fund Contribution (31% of Basic Remuneration): 1,100,000

• Sunita’s Net Take-Home Pay: NPR 3,050,000

Here’s what the Nepali tax slab looks like:

Take a moment to let that sink in.

Samir and Sunita have the same skills and the same gross salary. But at the end of the year, Samir walks away with over 26 lakhs more than Sunita.

That’s not just a small difference. That’s a “down payment on a flat” difference. That’s a “fund your entire family’s Dashain shopping for the next decade” difference. The only thing separating them is the address of their HR department.

This isn’t a hypothetical. This is happening everywhere, and it’s creating a massive imbalance.

"Invest in Nepal!" They Said. "It'll Be Fun!" They Said.

Now, let's talk about you. You, our successful friend in the diaspora, are constantly bombarded with pleas to "invest back home." It's a noble call to action. But the system is set up in a way that makes you question the very definition of "investment."

Here are your two choices for tapping into Nepal's talent:

Option A: The Genius Move (From Your Couch)

You stay right where you are, in Toronto or London. You hire five brilliant Nepali developers like Samir. You pay them directly. They’re ecstatic because they only pay 5% tax and take home a huge chunk of their salary. You have minimal paperwork, no need to wrestle with Nepali bureaucracy, and you're seen as a hero creating high-paying jobs. It’s a win-win-win.

Option B: The Patriotic Obstacle Course

You heed the call. You decide to formally register a company in Nepal. First, you survive the bureaucratic marathon of company registration. Then you rent an office. Then you hire five Sunitas. But wait. To offer a competitive take-home salary that can compete with the remote offers, you can't just match the gross pay.

To give Sunita the same net pay as Samir, you'd have to offer her a gross salary of nearly NPR 8,000,000. Your cost-to-company just exploded, and your accountant is probably having a small heart attack.

The system is practically screaming at you: "Thanks for your patriotism, but it's much smarter to just hire our people from afar. Please don't actually build a company here."

Meanwhile, Back in Kathmandu… The Local Hunger Games

If you think it’s weird for the diaspora, imagine being a local tech entrepreneur. You're trying to build the next great Nepali company, but you're stuck in an unwinnable talent war.

Your main competitor is no longer the company across the street. It's a random LLC in Delaware that can offer your best engineer a package that, after tax, you simply can't afford to match. It’s like bringing a khukuri to a drone fight.

So, your best talent, the people who should be becoming your team leads, your mentors, your future CTOs, are leaving. Not the country, but the local ecosystem. The brain drain isn't just happening at the airport anymore. It's happening in cafes across the city, as developers log into Slack channels for companies thousands of miles away.

This starves local companies of the oxygen they need to grow. We're telling our entrepreneurs, "It's more profitable to build a cat-photo-sharing app for a foreign firm than it is to build the next generation of e-commerce or digital payment systems for Nepal."

The House is Starting to Lean

"So what?" you might say. "A few people get a tax break. Good for them!"

But it’s not that simple. The whole economic house is starting to lean.

1. A Tax System on Stilts: 

Progressive tax is simple: the more you make, the higher percentage you contribute to things we all need, like roads (and potholes), hospitals, and schools. We’ve turned that upside down. We're asking our highest earners to contribute the least. It’s like asking the bodybuilders to carry the shopping bags and the toddlers to carry the cement sacks. It just doesn't work long-term.

2. The Resentment is Real: 

This isn't some secret. Everyone knows. It's the number one topic at every tech gathering, right after everyone complains about the internet speed. It creates a deep sense of "us vs. them" between professionals who should be colleagues, not competitors in a tax loophole lottery.

3. Building a Digital Labor Camp: 

An economy built on individuals serving foreign companies, without strong local institutions to anchor them, is fragile. We risk becoming a nation of digital freelancers, not a nation of innovators. We're exporting our best labor without building any long-term equity, intellectual property, or enduring companies at home.

Okay, Enough Complaining. Let's Fix It.

Complaining is our national sport, but it doesn't solve problems. Instead of just patching a broken system, let's fix it. The goal isn't to punish remote workers like Samir, but to create a level playing field where local professionals like Sunita can also win.

The real solution is simple and radical: One country, one tax system. For everyone.

Your tax shouldn't depend on whether your boss is in Baneshwor or Berlin. Here’s a fair plan:

1. Make the first NPR 20 lakhs of annual income completely tax-free for every citizen or charge a flat minimal tax of 5%. This gives the middle class breathing room and boosts the local economy. 

2. After that, apply simple, progressive slabs of 10%, 20%, and 30%. You only contribute more after you've earned a comfortable living.

This sounds like common sense, right? But it leads to the real, twenty-lakh-rupee question:

Is our government, so dependent on every tax rupee it can squeeze from the formal sector, actually willing to make such a bold move for the sake of fairness? Or will they just keep patching the holes while the system cracks?

This is Where You Come In

This is where you, with your global perspective and influential voice, can be a game-changer.

• Start the Talk: Talk about this. Share this email. Bring it up in your alumni groups and professional networks. The more people who understand what's really going on, the louder our collective voice becomes.

• Ask the Awkward Questions: When you engage with Nepali officials or investment forums, don't just ask about opportunities. Ask them why the current system punishes the very investment it claims to seek.

• Advocate for a Fair Go: Frame this as a pro-Nepal argument. It’s about long-term vision over short-term gain. It’s about building a strong, sustainable, and fair tech ecosystem for the next generation.

We have a golden opportunity to build something special here. But we can't do it on a cracked foundation. It's time to fix the rules of the game so that everyone has a chance to play, and to win.

Forward this to one diaspora friend who’s tired of being told to "invest in Nepal" without being told how not to get burned.

Let’s Talk

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Forward this to a friend, cousin, or anyone in the diaspora who should be part of this conversation.

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