Foreign Minister Dr. Rana urges India for additional air routes

Kathmandu, Dec. 20

Minister for Foreign Affairs Dr. Arzu Rana Deuba has urged India to grant Nepal additional air routes, a demand that the country has long been raising with its southern neighbour.

With the two new international airports in Bhairahawa and Pokhara and one more in the offing at Nijgadh, the country is in need of enhanced air connectivity.

Speaking at the Indo-Nepal Economic Conference in New Delhi on Friday, she underlined the significance of such cooperation for Nepal’s aviation and tourism sectors, the Ministry of Foreign Affairs (MoFA) informed in a statement.

“We have constructed two international airports in Pokhara and Lumbini, both of which are globally significant destinations. Pokhara is a renowned tourist city while Lumbini is the birthplace of Lord Buddha. These airports are not only meant to boost tourism but also to enhance overall connectivity. To operate them at full capacity, we require additional air routes,” FM Dr. Rana said elaborating on her demand made with India.

She also appealed to Indian airlines to increase flights to Nepal and assured them of maximum facilitation, including attractive incentives from the Government of Nepal. According to her, these airports will promote not only tourism but also help strengthen people-to-people ties and bilateral relations between the two nations.

 Dr. Rana said that the full operation of these airports, aided by additional air routes, would unlock further tourism potential between Nepal and India while also contributing to South Asia's connectivity. She cited joint initiatives like the Ramayana Circuit and the Buddha Circuit as effective ways to promote religious and cultural tourism and called for collaborative efforts to realise mutual benefits.

The Foreign Minister invited Indian investors to explore Nepal’s vast opportunities while informing that India remains the largest investor in the country. She highlighted Nepal's recent sovereign credit rating of ‘BB-’ as evidence of its investment-friendly environment. The rating is best in South Asia after India.

“Nepal has restructured its policies and enacted numerous laws to improve the investment climate. We are ready to sign bilateral investment agreements with as many countries as possible and offer attractive incentive packages, including tax benefits and export promotions,” said FM Dr. Rana.

She expressed the government's support in guaranteeing the full repatriation of investment earnings.

She also appreciated recent progress in cross-border infrastructure development, especially in the areas of rail links, petroleum pipelines, electricity transmission lines and motorable bridges. She also urged India to ease non-tariff barriers, facilitate border trade, and implement bilateral agreements to ensure balanced trade relations.

FM Dr. Rana acknowledged the breakthrough in cross-border electricity trade. An agreement for it was signed by former Nepali Prime Minister Sher Bahadur Deuba and Indian Prime Minister Narendra Modi in April 2022. "This agreement set the stage for Nepal to export up to 10,000 MW of electricity to India within a decade. Additionally, a recent tripartite deal has enabled Nepal to sell 40 MW of electricity to Bangladesh via the Indian grid," she said while adding that the agreement has encouraged hydropower developers to invest in Nepal’s energy sector.

Dr. Rana had reached New Delhi directly from Germany to participate in the conference on Thursday. She will return to Nepal on Monday.

Published in The Rising Nepal daily on 21 December 2024.   

Phewa Dialogue 2024 concludes

Kathmandu, Dec. 20

A two-day Phewa Dialogue 2024 organised jointly by Tribhuvan University of Nepal and Sichuan University of China concluded on Friday.

According to the Embassy of China in Nepal, speaking on the occasion, the former president of Nepal, Bidya Devi Bhandari, highlighted China’s rapid achievement in poverty alleviation and its remarkable economic success, which offers a replicable model for South Asia and could be a valuable ally in their journey toward development and prosperity.

She also stressed the need to unite for a safe, stable, and prosperous world.

The Phewa Dialogue brought together economists, strategists, development experts, and former government officials from China, South Asia, and Southeast Asia to discuss regional economic development strategy, read the statement by the embassy. It also said that the event aimed to be the pioneer and flagship project of high-level forums in the region.

Chinese Ambassador to Nepal, Chen Song, said that the fifth international industrial transfer was accelerating, and it was necessary for South Asia to seize the 'once-in-20-years' opportunity offered by the times.

"South Asia should promote regional integration and stay committed to an open economy and inclusive regionalism," he said.

Ambassador Chen also expressed hope that the Phewa Dialogue would gather wisdom for policy-makers in the region, and provide a constant source of strength for high-quality economic growth.

Likewise, former Finance Minister and Chief Economic Advisor to Prime Minister KP Sharma Oli, Dr. Yuba Raj Khatiwada, said that the global industrial transfer has led to the rapid rise of emerging economies such as China.

"South Asian countries, with their great human capital and abundant natural resources, could be an ideal destination for foreign investment and industrial transfer, and should prioritise areas like information and communication technology and clean energy, and focus on productivity improvement," he said.

Former Malaysian Minister of Transport Ong Tee Keat introduced ASEAN’s economic development and the significance of China’s Belt and Road Initiative on regional connectivity.

He noted that South Asia remains the least integrated region in the world, and the need to seize the opportunity offered by BRI and the ideal of a Community of Shared Future where least developed economies are given an equal place as equitable stakeholders.

Similarly, Yao Leye, Vice President of Sichuan University, said that the Phewa Dialogue represented yet another milestone in the fruitful partnership between Sichuan University and Tribhuvan University.

Prof. Dr. Keshar Jung Baral, Vice Chancellor of Tribhuvan University, said that Tribhuvan University, as Nepal’s oldest university, has maintained a long-standing cooperative partnership with Sichuan University. He expressed the willingness to further strengthen cooperation, enhance bilateral partnership with China and other South Asian countries and promote regional development.

Published in The Rising Nepal daily on 21 December 2024.   

Nabil integrates toll-free number to customer care

 Kathmandu, Dec. 20

Nabil Bank Limited has integrated toll-free numbers into the Nabil Customer Care Centre. The bank informed in a statement on Friday that this new initiative was introduced to accelerate customer experience by offering a seamless, accessible, and cost-free communication channel for all banking inquiries, support, and assistance.

"Nabil Bank’s customers can connect to the call centre for a wide range of services like account inquiries, product information, technical support, transaction disputes and others without any charge ensuring easy access across the country," read the statement.

Customers of Nepal Telecom can dial 16600-162245 while Ncell users can connect to 18102-162245 for their queries. "This facility connects the customers to the Customer Care Centre 24/7 without any charges, ensuring a more inclusive and customer-friendly service," said the bank.

Nabil Bank currently operates through 268 branches and 320 ATMs across the country serving over 2.4 million customers.

 Published in The Rising Nepal daily on 21 December 2024.   

FNCCI, KOIMA sign MOU to promote Nepali products in Korea

Kathmandu, Dec. 19

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Korea Importers Association (KOIMA) have signed a Memorandum of Understanding to promote Nepali products in the Korean market and expand investment.

The MoU was signed by FNCCI President Chandra Prasad Dhakal and KOIMA President Kim Byung-kwan at an event held in Seoul, South Korea on Thursday, the FNCCI informed in a statement.

KOIMA is an organisation established in South Korea to promote industrial environment and provide easy access to goods by importing industrial raw materials and, especially, goods not produced locally. "FNCCI believes that cooperation with an organisation focused on imports will facilitate the expansion of Nepali products in Korea. This is expected to reduce the trade deficit between Nepal and South Korea, which currently stands at around Rs. 7 billion," reads the statement.

According to the FNCCI, given that Nepal currently exports traditional goods such as felt, carpets and yarn, the FNCCI believes that cooperation with KOIMA will help find markets for industrial raw materials and other products.

At the event held to commemorate the 50th anniversary of diplomatic relations between Nepal and Korea and to sign the MoU, Dhakal said that there is immense potential to strengthen economic relations between Nepal and Korea.

Meanwhile, speaking at the event titled ‘Investment and Trade Opportunities in Nepal’ organised by the Nepali Embassy in Seoul, Minister for Industry, Commerce and Supplies Damodar Bhandari, Dhakal said that Nepal's energetic and youthful workforce, natural resources and proximity to large markets are important for Korean investors.

Speaking at the programme, Dhakal provided information about the government's steps to create an investment-friendly environment by amending eight investment-related laws.

Dhakal also highlighted Nepal's favourable economic indicators. He informed the investors that foreign exchange reserves had reached around 17 billion US dollars and that Nepal had received its first-ever credit rating which resulted in satisfactory BB- rating.

Dhakal emphasised the importance of infrastructure development and invited Korean expertise and investment in roads, railways, airports, urban planning, hotels, resorts, cable cars and smart cities.

 Published in The Rising Nepal daily on 20 December 2024.   

AmCham stresses favourable business climate

Kathmandu, Dec. 18

The American Chamber of Commerce in Nepal (AmCham Nepal) has suggested reforms across diverse sectors, emphasising the need to create a favourable environment for business growth and bilateral cooperation.

In a comprehensive memorandum to the Government of Nepal, presented to the Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, AmCham Nepal has outlined strategic recommendations to enhance the country’s investment climate and foster stronger economic ties between the United States and Nepal.

The organisation's Chairperson Nirmal Kajee Shrestha and board member Samrath Mogha discussed with DPM Paudel the critical role of US investments in fostering inclusive economic growth in Nepal.

The delegation emphasised how collaboration with AmCham Nepal could drive innovation, create jobs and build a dynamic economy through US investments, it said in a statement on Wednesday.
AmCham Nepal underscored the importance of introducing favourable policies and regulatory frameworks to attract and sustain foreign investments.

"Such measures are crucial for ensuring a business-friendly environment where US investors feel confident in contributing to Nepal’s sustainable development," said Mogha.
The memorandum included issues like facilitating the smooth repatriation of post-tax profits, unlocking the potential of the ICT industry to generate significant revenue for Nepal, ensuring tax stability for businesses, addressing ride-sharing regulations, revising Service VAT Tax policies, enhancing the Double Tax Avoidance Agreement (DTAA), and strengthening measures to combat anti-money laundering.
"The recommendations aim to address key challenges faced by US companies operating in Nepal, enabling them to contribute effectively to the nation’s economic growth," read the statement.
AmCham Nepal remains committed to policy advocacy, working closely with the Government of Nepal to support the seamless operation of US companies in the country, said Shrestha.

 Published in The Rising Nepal daily on 19 December 2024.   

Discussions underway for constitution amendment

Lalitpur, Dec. 19

Speaker of the House of Representatives, Devraj Ghimire has said that discussions are underway about the need for a review of the constitution.

"As the constitution nears a decade of implementation, discussions are underway about the need for its review. It is important to deliberate on our constitutional and legal provisions to keep the constitution dynamic and relevant to the times," he said at the National Governance Symposium (NGS) organised by Governance Lab of Daayitwa Abhiyaan in partnership with Nepal Administrative Staff College (NASC) with support from the Prime Minister's Office, National Planning Commission and Leadership Academy in Lalitpur on Thursday.

He stressed on greater cooperation among various levels of the government to ensure the success of federalism in Nepal especially in the areas like school education, civil service and police integration which are in the implementation phase.

"I believe that federal governance is a process of continuous improvement, addressing problems as they arise. However, the three levels of government still need to finalise some key policy and legal frameworks," said Speaker Ghimire.

Each level of government is carrying out its responsibilities, including policymaking and implementation, to achieve common goals like sustainable development. This includes addressing the needs of all sectors, genders, languages, religions, cultures, and minority communities while focusing on designing and implementing development and service delivery frameworks, he stated.

According to Ghimire, the success of federalism is also reflected in how well these aspects are addressed.

"There don’t appear to be major disagreements or disputes regarding the division of powers among the three levels of government and their implementation. Some of the shortcomings observed during the initial phase of federalism have also been resolved through practice," he said.

Ek Narayan Aryal, Chief Secretary of the Government of Nepal, said that lack of coordination among the sub-national governments in policy formation has posed challenges to the prosperity.

"Green resilience and inclusive development are the new initiatives in national development while participation of youth is paramount to this drive. This demands intensified collaboration among the three levels of the government," he said.

Aryal also suggested removing duplicities in laws and adopting participatory approach in formulating national and local policies. "The government is at the final stage to amend the laws that create obstacles in national development – including laws related to land acquisition and forest clearance," he said while seeking feedback from the conference in this initiative.

He stated that without proper digitalisation of public services, the delivery wouldn't be effective and productive, so the government has expedited the digital development in the areas like immigration, national identity cards and utility payments.

Speaking on the occasion, Sapana Malla Pradhan, a Supreme Court Justice, said that the constitutional bench at the Supreme Court has received many cases against the local body-enacted laws conflicting with the constitution of the country. "Strengthening of the local governments with better and effective policies and laws and capacity development of leaders is vital for good governance and effective service delivery," she said.

She also stressed that the intent of the laws should be good with their focus on facilitating people, not creating hurdles in their day-to-day affairs. Malla also said that there is a challenge in changing the opinion and attitude of people towards the inclusion of women across sectors and levels.

Likewise, Senior Vice-President of the Federation of Nepalese Chambers of Commerce and Industry, Anjan Shrestha, said that although the constitution had given a lot to all the communities the private sector still feels that it is a bit conservative in regard to the private sector.

The private sector had also fought to bring about new changes in politics and economy and was successful in mentioning 'open-market economy' in the constitution, he said. "Businesses and industries are still facing the challenge of tax duplication at various local bodies, all levels of the government should cooperate in removing such redundancies," he suggested.

Dr. Rajan Khanal, Executive Director of the NASC, said that since the country can't backtrack from the principles of inclusivity, it should learn from the federal and inclusivity models adopted by the federal states across the globe.

According to him, discourse among the governments should happen frequently to troubleshoot the challenges that arise while implementing the federal policies and practices.

The organisers said that the 2-day conference was organised to foster discussions on and create a collaborative community for governance innovations and inclusive development in Nepal. 

 Published in The Rising Nepal daily on 20 December 2024.   

NRB policy meant to strengthen banking sector: Governor Adhikari

Kathmandu, Dec. 19

Governor of the Nepal Rastra Bank (NRB), Maha Prasad Adhikari, has said that the policy implemented by the Nepal Rastra Bank (NRB) aimed at strengthening the banking sector in Nepal and they were not intended to create trouble in the industry. 

Speaking at the Annual Meeting of the Nepal Bankers' Association (NBA) on Wednesday evening, he said that the banking sector in the country is more transparent than any other sector of business.

Governor Adhikari also expressed hopes that the banking business will witness good days in the days to come.

He refuted the banks' statement that they couldn't distribute dividend due to the policy of the central bank and said that the distribution of dividend is based on the capacity of the individual company.

"The NRB accords priority to the financial stability in the country rather than micro-managing the banks and financial institutions," he stated.

According to Governor Adhikari, since there is sufficient liquidity in the financial system while the financial indicators are also good, there is no serious threat to the industry. However, increasing non-performing loan portfolio has created risks to the BFIs so they need to pay more attention to credit recovery, he said.

The annual meeting has elected a new working committee of the association of the 20 class 'A' commercial banks in the country under the leadership of Santosh Koirala, Chief Executive Officer of Machhapuchchhre Bank Limited. He was serving as the Vice-President of the association.

Likewise, Surendra Ragmi, CEO of the Global IME Bank Limited, is elected as the Vice-President. Members of the NBA are Tilak Raj Pandeya of Nepal Bank, Ram Chandra Khanal of Kumari Bank, Ashok Sherchan of Prabhu Bank, Nischal Raj Pandey of Sanima Bank, Sanjeev Manandhar of Prime Commercial Bank, Sundar Prasad Kandel of Siddartha Bank and Sudesh Khaling of Everest Bank.

Immediate Past President Sunil KC will remain as an ex-officio member in the working committee while Ashok Shumsher JBR and Gyanendra Prasad Dhungana are the advisors.

Outgoing President of the NBA, Sunil KC, highlighted the contribution of the banking sector to the national development and financial inclusion with the expansion of branches to all 753 local units. He appreciated the role of the NRB in timely regulation which resulted in the BB- in the sovereign country rating.

"However, political instability, economic slowdown and decreasing credit demand has negatively impacted the banking industry. Quick fluctuations in the liquidity has also posed threats to the stability of the financial system," said KC.

 Published in The Rising Nepal daily on 20 December 2024.