Development budget's share 66 pc

Kathmandu, May 30: The development budget for the next fiscal year 2017/18 has reached 66 per cent from the current year’s size of 58 per cent.

The size of the estimates of income and expenditure for the next fiscal is Rs. 1.279 trillion.

Although Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara’s budget for the next fiscal earmarked Rs. 335.27 billion, 26.2 per cent, for capital expenditure, including the budget, Rs. 232 billion allocated to the local units and the development budget included in the current expenditure, the overall capital expenditure is about 66 per cent.

The budget has set aside Rs. 803.53 billion for current expenditure, Rs. 335.27 billion for capital expenditure and Rs. 140.28 billion for financial management.

The size of the budget is 21.9 per cent higher than the budget of current fiscal year 2016/17.

Speaking to the journalists at the post-budget discussion at the Singha Durbar on Tuesday, Vice-President of the National Planning Commission Min Bahadur Shrestha said that the number of ‘first priority’ projects has been increased to 1219 in the next fiscal from 484 projects in the current FY.

“This means increased economic activities, opportunities and employment. Therefore, the government has announced to create 400,000 new employments in the next FY.

He refuted the charges that the budget was swollen in size, and said that if Nepal aspired to be a middle-income country by 2030, it should be prepared for even larger budget.

“This is the decentralization of development, it will help to achieve higher economic growth,” he stated.

Institutional set-up in one-and-a-half months

Mahara said that the required institutional structures required for the operation of the local bodies would be created within one-and-a-half months.

He said that the local bodies would support in smooth and timely budget implementation.

He also claimed that the local units would be less corrupt.

“Financial mismanagement and misappropriation is the disease at the top level of the government and bureaucracy. I have tried to break this syndrome by devolving the power to the local bodies through the budget,” he said.

According to him, the local units, however, wouldn’t be let go haywire in fiscal management and expenditure, there would be a separate mechanism for monitoring and evaluation.

Finance secretary Shanta Raj Subedi said that a new system for budget allocation and expenditure would be developed after the formation of Financial Commission and analysis of revenue and expenditure potentials of the local units.

For the effective implementation of the budget, the Ministry is developing a procedure. Moreover, the line ministries and other execution agencies need not wait for the budget approval and authorization.

The budget is approved and authorized as the Finance Minister read it at the Parliament on Monday.

The statement of the income and expenditure for the next FY plans to enhance the capacity of the provinces and local units so as to set the rate and revenue of scope in order to raise a certain portion of financial resources themselves.

Meanwhile, the Confederation of Nepalese Industries (CNI) said that as the local governments are in the process of formulation and lack skilled human resources and clear legal provisions, there were chances of financial misappropriation and non-transparent expenditure or investment in non-productive sector.

“Therefore, required institutional and legal framework should be created at the earliest. If this could be achieved, it will support in the implementation of federalism and poverty alleviation,” read a statement issued by the CNI.

It also said that due to the election code of conduct, the government couldn’t come up with new programmes, as a result, the budget has concentrated in the national pride and other large infrastructure projects.

However, the business body expressed dissatisfaction for not including its suggestions. 

Oli praises OBOR MoU signing

Kathmandu, May 30:

Former Prime Minister and CPN-UML chair KP Sharma Oli Tuesday expressed happiness over the signing of the Memorandum of Understanding (MoU) on the China-proposed ‘One Belt One Road (OBOR)’ initiative.

Addressing a conference on ‘OBOR: Enhancing closer connectivity’, organised by International Concern Centre, he said that OBOR would open new avenues for investment, tourism and trade in Nepal and would prove instrumental in attracting foreign investment.

“We can set our development plans and agenda in collaboration with any friendly country without creating any disturbances for other friendly nations. In this age, international relations should contribute to development and economic prosperity of the country,” said Oli.

He said that the Transit and Transport Treaty signed with the northern neighbour had opened the way for Nepal to diversify trade as it now had two ways to reach the sea.

Speaking on a different note, Oli criticised the government for its cold response to the deteriorating image of SAARC – the South Asian Association for Regional Cooperation.

“Nepal is the chair of the regional body, and we are a founder of SAARC. It is in a crisis now. But the government doesn’t have its own say on the matter, instead it reads some other country’s interest,” he stated.

Former Finance Minister Dr. Ram Sharan Mahat said that landlockedness, which was a traditional handicap for the country, would be turned into an opportunity with increased connectivity, trade, investment and tourism.

“OBOR will certainly help us in this regard. Through this platform we can share knowledge among various countries in the network and work together for connectivity and shared prosperity,” he said.

CPN-UML secretary Pradip Gyawali said that as the existing model of globalisation was facing challenges due to trade protectionism, visa restriction and other reasons, the OBOR would rise as an alternative to this.

“We need to materialise the OBOR in Nepal with the development of railways, transmission lines and petroleum pipelines,” he said.

Lin Minwag, professor at the Center for South Asia Studies at the Institute of International Studies, Fudan University, said that the recent OBOR conference in Beijing had contributed to greater understanding of the Belt and Road Initiative and greater collaboration among the member countries.

Chairperson of the ICC, Dr. Anjan Shakya, said that the initiative would address various sectors of development in Nepal. 

First federal budget of Rs. 1.279 tr. unveiled

current expenditure Rs. 803.53 billion
capital expenditure Rs. 335.27 billion 
financial management Rs. 140.28 billion 

Kathmandu, May 29: Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara Monday unveiled a budget of Rs. 1.279 trillion for the coming fiscal year 2017/18, with special priority to federalism implementation, large infrastructure projects including hydropower, and post-quake reconstruction.

This is the first federal budget of the country that aims at implementing federalism and strengthening the local bodies.

The size of the budget is 21.9 per cent higher than the budget of last fiscal year 2016/17, and about 36.6 per cent larger than the revised estimates of the budget of the current fiscal.

Last year, the then finance minister Bishnu Paudel had presented a budget of Rs. 1.048 trillion with special focus on reconstruction, infrastructure and constitution implementation.

According to Mahara, current expenditure comprises Rs. 803.53 billion and capital expenditure Rs. 335.27 billion while Rs. 140.28 billion has been set aside for financial management.

The share of the current and capital expenditure and financial management is 62.8 per cent, 26.2 per cent and 11 per cent respectively.

“The objective of the budget is to support constitution implementation, achieve sustainable, inclusive and high growth, maintain macro-economic stability, and enhance access of the common citizen to public service,” he said.

FM Mahara plans to generate Rs. 730 billion in revenues, principal repayment of Rs. 15 billion, foreign grants worth Rs. 72 billion and foreign loans of Rs. 214 billion to manage the expenditures.

The size of the budget deficit is Rs. 461 billion.

Meanwhile, revenue mobilisation in the current fiscal year is estimated to reach Rs. 581 billion, which is 103 per cent of the target.  

As per the estimates of the income and expenditure for the next fiscal year, the country will witness a Gross Domestic Product (GDP) growth rate of 7.2 per cent while inflation will be below 6 per cent.

DPM Mahara claimed that about 400,000 additional jobs will be created with the implementation of the budget.

Local bodies get 17.6 pc

The total budget for the local bodies makes about 17.6 per cent of the total expenditure.

As per the new provision, every rural municipality will receive Rs. 100 million to 390 million, municipality Rs. 150 million to Rs. 430 million, sub-metropolitan city Rs. 400 million to Rs. 630 million, and metropolitan city Rs. 560 million to Rs. 1.24 billion in grants.

“As the natural resources and finance commissions are yet to be formed to recommend financial transfer, revenue allotment and grant to the local bodies, the local units will receive the grant money according to the size of population, status of development and cost integrated area for the next fiscal,” the budget speech read.

In addition to such unconditional grants, the local bodies will get conditional grants, which could be as much as Rs. 172 million for a rural municipality, Rs. 312 million for a municipality, Rs. 310 million for a sub-metropolitan city and Rs. 783 million for a metropolitan city.

FM Mahara has allocated Rs. 76.41 billion for the purpose.

 “I have set a provision of direct fund transfer for the creation of the institutional structure needed for the provincial government because the elections for the provincial bodies will be held next fiscal year,” he said.

The budget has handed over various projects like some activities of the Prime Minister Agriculture Modernisation Project, agriculture market infrastructure, fisheries development programme, small irrigation, forest development, community development, urban roads, local tourism infrastructure, waste management, livelihood programmes and other various programmes related to education and health to the local bodies.

Priority to reconstruction and infrastructure

While Rs. 146.18 billion has been allocated for post-quake reconstruction, the budget aims at enhancing the capacity of the stakeholders of reconstruction works.

The budget also aims at expediting the works of the national pride projects by formulating new legal and procedural provisions.

The second international airport, Bhairahawa Airport, Pokhara Airport, Budhigandaki Hydroelectricity Project, Kathmandu-Terai Fast-track, Postal Highway, North-South corridors, East-West railway, irrigation and Thankot-Naubise tunnel have received priority in the budget.

The government also aims at producing 17,000 megawatts of electricity in the next seven years under the ‘Nepal’s’ Water, Nepalis’ Investment’ programme.

Education programmes up to class 10 have been handed over to the local bodies, and budget has been allocated to establish Bidushi Yogmana Ayurveda University and Higher Institute for Engineering and Technology.

DPM Mahara also said that an Infrastructure Development Bank will be established in participation with national and international banks to promote domestic and foreign investment in infrastructure development.

The Infrastructure Development Bank has been the topic of every budget for the last decade but has not been established yet. 

First ever agri-business boot camp organized

Kathmandu, May 29:

First ever boot camp is organised in the capital with an aim to promote agricultural business where 25 business people participated to harness their skills to uplift their enterprise.

Those participants, 5 start-ups and 20 businessmen, had participated in the ‘AgriBusiness Boot Camp’ from April 21 to 27 where they were trained in the supply chain, packaging, value production, customer segmentation, branding, finance, and sales and distribution.

“The boot camp will help start-up companies to execute their projects both financially and structurally. We believe that they will be able to help the selected agricultural businesspeople towards a sustainable progress,” read a press statement issued by Nepal Entrepreneur Hub (NE Hub), organiser of the event.

The event was supported by the World Bank and Info Dev, and Business Oxygen (bo2) was co-sponsor.

According to Bijendra Joshi of NE Hub, the participants will be able to acquire require skills to boost their company through such boot camps. They were taught by business experts on import, supply chain, value added tax, market focused expansion, legal process, buying, distribution, investment and partnership.

NE Hub had opened application for the boot camp from February 12 to March 10.

“Altogether 641 had filled the forms including 383 start-ups and 258 businesses. Both groups went through a pre-judging process round where only 65 start-ups and 46 businesses were selected,” said the company.

Later on, on the basis of idea pitching, the number of participants was brought down to 5 start-ups while 20 businesses were selected through ‘Speed Dating’.

The selected businessmen run industries on products such as tea, coffee, banana, pickles, spices, honey, food production and vessels made from coconut plants. 

(Published in The Rising Nepal Daily on 30th May, 2017)

Syska opens biggest showroom in Kathmandu

Kathmandu, May 11: Indian SSK Group Brand, Syska LED has opened its biggest international showroom in Kathmandu.

"We offer solutions for LED lighting, ranging from residential, commercial, outdoor and industrial lighting," said a press statement issued by Call Mobility, local distributor for Syska in Nepal.

According to Call Mobility, the showroom features Syska LED, and beauty and grooming products for both men and women.

Syska has more than 100 LED lounges and 1400 distributors in India and abroad. 

Public Corporation’s profit goes up

Kathmandu, May 28: Government-run corporations’ profit index has improved in the last fiscal year.

According to the Annual Status Assessment of the Public Corporations, government corporations earned Rs. 34.96 billion net profit in the FY 2015/16 which is 1.61 per cent higher than the previous fiscal.

Of the 35 corporation that are in operation, 23 had run in profit.

Nepal Oil Corporation, Nepal Telecommunication Company Limited, Nepal Bank, Agricultural Development Bank, Rastriya Banijjya Bank and Civil Aviation Authority of Nepal had earned higher profits in 2015/16 fiscal.

Other corporation that earned profits are Dairy Development Corporation, Herbs Production and Processing Company, Hetaunda Cement Company, Agricultural Inputs Company, National Seeds Company, The Timber Corporation, Industrial District Management Limited, Nepal Transit Warehousing Company, Nepal Airlines Corporation, Gorkhapatra Corporation, National Insurance Company, Beema Sansthan, NIDC Development Bank, Deposit and Credit Guarantee Fund, Nepal Stock Exchange Limited, Citizen Investment Trust and Hydropower Investment and Development Company.

Corporations like Nepal Electricity Authority, Udayapur Cement Industry, Nepal Drugs Limited and Janak Education Materials Centre ran into losses.

(Published in The Rising Nepal Daily, May 29, 2017)

PCI reached Rs. 88,785

Kathmandu, May 28: Per capital income of Nepalese citizen is increased by 105 US dollars and reached 862 dollars – Rs. 88,785.

According to the Economic Survey of the country presented by Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara at the Legislature-Parliament on Sunday, per capita income of Nepalese people was 757 dollars last year.

As the economy of the country rebounded after the shocks of the devastating Gorkha Earthquake 2015 and Indian blockade at the southern Nepal-India border, it created favourable environment for business and employment generation.

The economic growth rate of Nepal is estimated to reach 6.94 per cent in the current fiscal year 2016/17, from the almost zero growth in FY 2015/16.

The Central Bureau of Statistics, a national statistical organisation under the National Planning Commission (NPC), had unveiled the estimates last month that the country would witness the Gross Domestic Product (GDP) growth rate of almost 7 per cent at basic price in the fiscal year 2016/17.

Survey said that favourable monsoon, energy availability and reconstruction works were the major drivers of the highest growth rate that the country is likely to achieve after about two-and-a-half decades.

Similarly, expansion of commercial agriculture, reduction in strikes and improvement in the implementation of government programmes helped to recover the economy, said Mahara.

DPM Mahara claimed that there has been significant improvement in capital expenditure. 

However, of the total capital budget, only 17 per cent is utilized by the end of the first eight months of the current fiscal year.

In the current FY, agriculture and non-agriculture sector’s contribution will be 29.37 per cent and 70.63 per cent respectively while the contribution of revenue to the GDP is projected to reach 22.3 per cent.

As per the Survey, the consumption is estimated to increase by 7.9 per cent as compared to the FY 2015/16 and will reach Rs. 22.33 trillion at current prices.

The average ratio of consumption to the GDP for the last decade is 89.86 per cent. It was 96.18 per cent last year while it estimated to come down to 89.7 per cent in the current fiscal.

The government has expected increment in capital formation expenditure.

“The capital formation expenditure was Rs. 8.31 billion in FY 2014/15 which decreased by 8.9 per cent in the last fiscal and went down to Rs. 7.57 billion. It will be increased by 45.8 per cent as compared to the previous year and reach Rs. 1.14 trillion,” read report.

Share of capital formation in the GDP will remain at 42.5 per cent in the current fiscal, last year it was 22.7 per cent.

Likewise, the share of national savings will be 10.25 per cent of the GDP which was 3.82 per cent last year.

In the last eight months electricity supply is increased by 105.6 megawatt and reached 961 megawatt.

Similarly, road network has reached 29,153 kilometre.

In the first eight months of the current fiscal, Nepal has received pledges of Rs. 213 billion foreign aid, and remittances increased by 5.3 per cent and reached Rs. 450 billion.

During the period the country exported the goods worth Rs. 48.22 billion while the imports soared to Rs. 628 billion, 44.2 per cent up from the last fiscal.

DPM Mahara said that it was challenging to end dependency, achieve the Sustainable Development Goals and make Nepal a middle income country by 2030.

Likewise, the report said that the availability of investment resource at the federal, provincial and local level, allotment and mobilization of the resources and sustainable development were also the challenges.

Similarly, generating employment in the country and stop the youth from going abroad in search of jobs, creating industrial infrastructure, fighting with the climate change and developing scientific land use policy have been identified as the challenges to the sustained economic growth.

(Published in The Rising Nepal Daily, May 29, 2017)

‘A Quite Desire’ showcases Tagore’s life

Kathmandu, May 28: Ruchika Theatre Group of India staged ‘A Quite Desire’, a theatrical performance depicting glimpses from the life of Nobel Prize winner Bengali poet Rabindra Nath Tagore, at the Army Officer’s Club on Sunday.

The play depicts the psychological ups and downs in Kadambari Devi, sister-in-law of Tagore, who jealously loves her brother-in-law who was of the same age. When Kadambari Devi was married to Jyotirindranath Tagore, elder brother of Rabindra, she was 9 years old.

As Jyoti is busy in various works along with his business, Rabindra and Kadambari become playmates and companions, and affection between them keeps growing.

The drama comes to an end with the suicide from an overdose of sleeping tablets taken by Kadambari after the marriage of Rabindra with Mrinalini Devi.

Written and directed by Feisal Alkazi, the play beautifully portrays the companionship between Rabindra and his sister-in-law, Kadambari, and the social impact of the events.

She was the first and only reader of Rabindra’s creations till they got published. And, when his books were published, he earned wide accolades from around the Indian subcontinent.

Jealousy is clearly visible in the eyes of Kadambari when Rabindra receives various gifts and gold from the king of a neighbouring state as an appreciation of his beautiful poems, and while reciting the letters sent to him with admiration of his creations.

In his initial days, most of the poems by Rabindra were written on Kadambari.

Alkazi is successful in presenting the paradox of relationship between the two on stage.

“The marriage of Rabindra’s elder brother Jyoti to nine-year-old Kadambari, two years older than himself, brought a whole new dimension to his experience of the world. For the longest tie, she was his only reader, friend, confidante and, above all, his muse,” said Alkazi.

He said that the play tried to explore the relationship through the medium of Tagore’s own words.

The fact that Kadambari committed suicide four months after Tagore’s marriage indicates the depth of their bond.

The play has used many pieces of prose, poetry and music of Tagore. The major three characters of the play Jyoti, Kadambari and Rabindra were performed by Jaipreet Singh, Smita Mazumdar Rajaram and Armaan M Alkazi respectively.

The drama was presented by the BP Koirala India-Nepal Foundation, Embassy of India, and Kathmandu.

Minister for Culture, Tourism and Civil Aviation Jitendra Dev facilitated the artistes and said that such events would help in deepening the cultural and people-to-people relations between the two neighbours.

(Published in The Rising Nepal Daily, May 29, 2017)

Every investor entitled to 10 shares under new provision

 Lalitpur, May 28:

The Security Board of Nepal (SEBON) has implemented a new provision to allocate at least 10 units to every individual who applies for the shares in the Initial Public Offering (IPO) and Further Public Offering (FPO).

With the implementation of the new Securities Registration and Allotment Guidelines, 2017 on Sunday, every applicant will receive at least 10 units or a number multipliable by 10.

“Likewise, only individuals can apply for the IPO of any company. If the share is short-subscribed by individuals, only then companies will have a chance to apply for such shares,” said spokesperson of SEBON Niraj Giri at a press meet held at the Board’s office on Sunday.

According to him, the board has made such a provision to increase the participation of investors in the primary offerings and enhance the secondary market.

Such a provision will be implemented through the ASBA (Application Supported by Blocked Account) system. ASBA is a system through which an investor can submit his securities subscription application to the issue manager through a bank where he maintains his bank account.

Similarly, the new guidelines have provisions for calculating the premium of any company that opts for primary issuance of its shares.

Such companies have two options of calculating the premium of the shares – capitalised earning and discounted cash flow of the last three years, and average price of the shares calculated on the basis international standards or four-fold price of the shares calculated on the basis of latest auditing.

Either of these two can be set as the premium.

“The new guidelines bars companies from issuing the FPO for five years from the date it issues such an offering,” said Giri.

With the full implementation of ASBA, the duration of issuing an IPO and restarting share trading will be reduced to 2 months while it used to take about 6 months to complete all of those processes.

“Similarly, companies should open collection centres outside the Kathmandu Valley where there are investors, and start the transaction of securities within 15 days of a joint business launch after a merger,” said Giri.

The guidelines have replaced the Securities Issue Guidelines, 2008, Bonus Share Issue Guidelines, 2010, and Securities Allotment Guidelines, 2011.

Meanwhile, chairman of the Board Dr. Rewat Bahadur Karki has reiterated that the country needed a second stock exchange.

“International financial institutions are set to issue bonds in local currencies, large infrastructure projects and private sector companies are aspiring to issue large amounts of shares and the number of investors is ever increasing. Therefore, to address all these issues and make the capital market more competitive, we need a second stock exchange,” he said. 

Power tripping causes Udayapur Cement to lose 30 pc productivity

Udayapur, May 27: Udayapur Cement Industry Limited has been losing about 150 metric tones of cement production per day due to power tripping.

The one of the two government owned cement industries that registered profits for the first time since its establishment in 1987 is forced to shut for as much as 10 times a day due to power fluctuations and outage.

General Manager of the company Surendra Poudel said that the electricity was a major challenge in plant operation and cement production.

“We are facing as much as 30 per cent capacity deficit due to electricity fluctuation and outage. It takes more than an hour to restart the entire machine system even if the power is cut just for a couple of seconds,” he said.

In monetary terms, the industry is losing at least Rs. 30 million in a month.

Speaking to a group of journalists, members of the trade union at the company said in one voice that smooth supply of electricity could not only boosts the production of the industry but also reduces the cost of production.

They blamed the Nepal Electricity Authority (NEA) for ignoring the request of the company for a long time.

“The factory is forced to shut down more than seven times a day due to electricity problem. If smooth electricity supply is insured, it could produce additional 100 to 150 tons per day,” said Tribikram Gyawali, chairman of Gefont Sagamatha Zonal Committee.

Assistant Mechanical Engineer of the company Ashok Kumar Shah stated that the factory had also sought alternative to the problem by installing generators.

“But, installing a generator and inverter for the uninterrupted power supply can cost more than Rs. 100 million. As the company was running in loss for so many years, it didn’t have resources to manage it,” said Shah.

According to Gyawali, though there was a dedicated feeder for interrupted power supply, more than 500 local households, small and cottage industries and other businesses are using the electricity from the same line.

Though the NEA was requested to supply electricity to those customers through a different supply line, it has not been implemented yet.

As a result, the industry is not getting smooth electricity supply even though it has been paying double charges for the electricity.

A delegation of the workers had reached to the NEA Udayapur Distribution Center, and went to Kathmandu to meet NEA Managing Director Kulman Ghishing.

“NEA is positive to resolve the problem as soon as possible. But, result is yet to be seen,” said Chakra Bahadur karki, president of All Nepal Industrial Workers Union Udayapur.

However, GM Poudel is hopeful that the power problem would be sort out in a couple of days.

The NEA source in Kathmandu said that the problem of electricity at the industry would not remain for long.

Constructed by Japanese companies Kawasaki Heavy Industries and Tomen Corporation, the industry has the capacity of producing 800 metric tones of cement per day.

But the company management said that the capacity could reach up to 1100 tonnes with general modification in the machines.

It has been producing ordinary portland cement (OPC) in ‘Gainda’ brand which is the most sought after cement brand in the country although it is expensive by Rs. 30 at the factory and by Rs. 100 in the Kathmandu Valley.

(Published in The Rising Nepal Daily, 28th May 2017)

S Korea organizes Cultural Festival

Kathmandu, May 27: The Embassy of South Korea in Kathmandu has organised a day- long Korean Cultural Festival 2017 on Saturday.

Organised at the Army Officers Club, the festival included cultural presentation through K-Pop world festival in Nepal, Korean food festival, various games, quiz on Korea and other events.
Korean ambassador to Nepal Park Young-sik said that the embassy had designed the festival in a way that Nepalese people liked it.

He said that K-Pop was taken as an opportunity to enhance understanding and share idea among various groups of K-Pop fans around the world.

About 67 teams had participated in the first round of K-Pop competition last week, and 12 finalist teams performed at the Festival.

Likewise, seven Korean restaurants from the Kathmandu Valley offered delicious foods to the visitors at the festival. The food items included various delicacies and juices.

“Korea and Nepal have many things in common such as celebrating happiness, working hard, using various types of vegetables in their food and preferring hot taste in food,” said the ambassador.
He noted that the two nations enjoyed good relationship at the government and people to people level.


(Published in The Rising Nepal Daily, 28th May, 2017)

Finance Committee asks govt to give priority to local units in budget

Kathmandu, May 26:

The Finance Committee of the Legislature-Parliament has recommended the government to allocate maximum budget to the local units, and develop a budget mobilisation and expenditure management system to guide them.

A meeting of the House panel Thursday afternoon decided to suggest to the government, including the Ministry of Finance and the National Planning Commission (NPC), to provide the maximum budget to the local units as they were the bases of income.

“The government should give continuity to the programmes like ‘Lets Build Our Village Ourselves’. It also demanded that the budget distribution be inclusive,” read a statement issued by the Committee chairman Prakash Jwala.

The committee recommended utilising the old structure of the local unit as much as possible and creating new structures as soon as possible.

Projects like the Himali Highway connecting Taplejung in the east to Darchula in the west, Himali city, boarding schools in the remote areas, and integrated settlements in the Mountain, Hill and Terai regions are also included in the suggestion.

Similarly, the House panel has demanded allocating sufficient budget to national pride projects like the Kathmandu-Terai Fast Track, Budhigandaki Hydropower Project, Postal Highway and Mid-Hill Highway, and focus on budget implementation.

It has suggested giving priority to energy and tourism sector development.

“The government should stress on increasing energy production. Apart from the Budhigandaki, budget should also be allocated to the Indrawati Multipurpose Reservoir Project, and the concept of Remit Hydro should be addressed in the upcoming budget,” Jwala said.

Likewise, the planning body has recommended developing programmes to promote domestic tourism, and build infrastructure at Pashupati, Lumbini, Muktinath, Pathibhara, Halesi, Gosainkunda, Swargadwari, Chhinnamasta, Khairabang and other prominent religious destinations in order to promote religious tourism.

Agriculture is another area that it said needed to be considered.

“Launch programmes to replace import of agricultural products, develop cold storage in every local unit, establish agro-processing industries, and give priority to modernisation and mechanisation of agricultural sector.”

The committee has also advised the government to enhance financial access in the local units that have been out of financial inclusion so far, simplify grant distribution process to facilitate quake-affected families, and provide land to the landless to build houses under the ‘Janata Awas’ programme.

Tourism and Energy need investment: DPM Mahara

Kathmandu, May 25:

Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara said Thursday that Nepal needed heavy investment in tourism infrastructure, and it was a great opportunity for the foreign investors.

In his inaugural address at the 14^th meeting of Nepal-China non-governmental cooperation Forum in the capital, he urged Chinese investors to invest in the tourism business and infrastructure here.

“There is ample scope for joint ventures between Nepal and China in the tourism sector. I would like to take this opportunity to welcome Chinese investors to invest in this highly potential sector in Nepal,” he said.

He stated that as Nepal needed heavy investment in tourism infrastructure, there was ample scope for joint ventures between Nepal and China in this sector.

DPM Mahara said he expected cooperation and transfer of technology and investment in new energy.

“It is very crucial for Nepal’s development, not only because Nepal has tremendous potential of hydropower resources, but also because of the fact that Nepal, due to its geographical location and geological factors, has to seek sustainable energy for its socio-economic growth,” he said.

According to Mahara, another important area for cooperation between the two neighbours was light engineering product manufacturing, hardware and building materials.

He said that Nepal could restart the industrialisation process with light manufacturing products, such as auxiliary industries, small utensils, equipment, machines, electrical and electronic products that are useful in other sectors, such as agriculture, food processing packaging, livestock, tea-coffee and handicraft.

DPM Mahara said that the government would support the investors in every possible way in order to realise their business projects in Nepal.

Recalled the OBOR International Summit held in China recently, he said that he was highly impressed by the summit outcome.

“We see this as an opening of new possibilities and opportunities, which enables us to have economic and socially beneficial ventures,” he said.

Vice-chairman of All China Federation of Industry and Commerce (ACFIC) Xie Jingrong said that Nepal was an important partner in the development and implementation of the OBOR (One Belt One Road).

He said that the Forum has helped in realising joint business and investment initiatives in both the countries.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Bhawani Rana invited the Chinese investors to invest in public-private-partnership (PPP) projects.

“The government has recently come up with the PPP policy, and we are expecting the PPP Act to be finalised very soon. This will open a whole vista of new possibilities under PPP projects, especially in the infrastructure sector,” she said.

She said that the expansion and extension of connectivity arising out of the Silk Road Economic Belt would help further boost the bilateral economic relations, tourism exchange, investment and people to people contacts.

FNCCI vice-president Shekhar Golchha said that it was time to further strengthen cooperation in trade, investment, tourism and people to people relationship between China and Nepal.

The meeting was jointly organised by the FNCCI and ACFIC. 

NCM becomes Sunrise Capital

Kathmandu, May 25: NCM Merchant Banking Limited has started its business from its new name Sunrise Capital Limited (SCL) from Wednesday.

SCL is a subsidiary company of Sunrise Bank Limited.

The bank had acquired the NIDC Capital Markets Limited earlier this year and started its transactions with the nomenclature of NCM Merchant Banking.

A special Annual General Assembly of the company on May 22 had amended the statute and bylaws of the company and gave approval for the capital increment of the SCL and changed the name.

“After the special AGM’s approval, we have begun the transaction from the new name with the permission from the Office of Company Registrar,” read a statement issued by the company.

The SCL has Rs. 200 million issued capital and Rs. 100 million paid-up capital.

It said that it had been working as issue manager and share registrar, and would work in the areas of portfolio management and mutual fund in the future.

Pooja launched Kobelco excavator

Kathmandu, May 25:

Pooja Construction Nepal Pvt. Ltd. has started the distribution of 21-ton capacity Kobelco SK 220XD excavator in the Nepalese market.

Produced in line with the Japanese technology this heavy equipment is produced in India.

“This machine can be used in various construction works including road and mines. It is specially suitable for the topography like we have in Nepal,” said the company.

The excavator costs Rs. 9.7 million.

The company informed that in the last three years more than 300 Kobelco excavators have been sold in Nepal.

PM Prachanda resigns

Kathmandu, May 24

Prime Minister Pushpa Kamal Dahal Prachanda Wednesday tendered his resignation from his post.

“I have quit as per the gentleman’s agreement’ with the government coalition partner Nepali Congress,” said Prime Minister Prachanda, who replaced KP Sharma Oli-led government some nine months ago.

President Bidya Devi Bhandari approved his resignation today itself.

Prior to resigning from the post, PM Prachanda had addressed to the nation from his own office at Singh Durbar after main opposition threatened to disrupt the parliament.

In his address, he had highlighted the achievements of his government but he also tried to seize the moral ground high by passing the baton to the NC.

“I want to end the crisis of morality in politics, so I decided to step down as the PM in line with the agreement with the NC,” he said, adding that the Nepalese politics was replete with instances in which mutual agreements had been breached time and again.

Stating he assumed the post in the midst of various political, social, economic and diplomatic challenges, the PM said that progress had been made to implement the new constitution through the first phase of local polls.

He said that the preparations for the second phase of local elections in the remaining four provinces had been completed, and also expressed hope that the whole country would participate in it.

“With the successful holding of the first phase of local elections, democracy has practically reached the wards of every village and town. Winning and losing the poll is not important for me. I believe the country has won, and democracy with social justice, secularism and proportionate inclusive governance system has been institutionalised,” said Prachanda.

Stating that the economic indicators were positive, he claimed that reconstruction gained historic speed and implementation of large development projects picked up due to his continuous monitoring.

He said that Nepal had reached the level of its neighbours in terms of economic growth.

PM Prachanda emphasised the achievements made in the hydropower sector.

“I initiated the ‘Ujjyalo Nepal Campaign’ with an aim of ending the load-shedding. Khimti-Dhalkebar Transmission Project, which has been obstructed for many years, was implemented on the fast-track,” he said.

According to him, due to various policy reforms and projects implementation in the energy sector, not only load-shedding came to an end but also 200 megawatt electricity within a year, 600 mw in two years and 1200 mw in three years will be added to the national grid.

He expressed happiness while informing that country was heading towards an energy-exporting nation.

His government initiated Agricultural Super Zone each in seven provinces.

He presented the construction of Fast-Track road, Postal Highway in Terai and progress at Melamchi Water Supply Project as his achievements.

 “My government has started works to create mega cities in 14 locations including Palungtar, Lumbini, Dullu, Waling, Amargadhi, Pokhara, Dharan, Biratnagar and Kathmandu,” his statement read.

He also said that his government successfully organised Investment Summit that received investment pledges of Rs. 1.4 trillion which would help in expediting the process of industrialization.

Likewise, the PM stated that his government increased the insurance amount for workers working abroad, halved the passport fee, implemented provision of online application for ‘labour permit’, brought the Nepal Drug Company which was shut for almost eight years, and global tender had been called for petroleum exploration.

He also said that the government worked to balance the diplomatic relations with the two closest neighbours – India and China.

आव २०७४/७५ को नीति तथा कार्यक्रम प्रस्तुत

राष्ट्रपति विद्यादेवी भण्डारीले आर्थिक वर्ष २०७४/७५ का लागि सरकारको नीति तथा कार्यक्रम प्रस्तुत गरेकी छिन् ।

जेठ ११ गते बिहीवार संसदमा प्रस्तुत गरिएको सो कार्यक्रमले पुरानै नीति तथा कार्यक्रमलाई निरन्तरता दिएको छ ।
निर्वाचन आयोगले सामान्यरुपमा नीतिकार्यक्रम तथा बजेट ल्याउन भने पनि सरकारले यसपालि खासै नयाँ कार्यक्रम प्रस्तुत भने गरेको छैन ।
आर्थिक वर्ष २०७४/७५ को नीति तथा कार्यक्रमको पूर्ण पाठका लागि यहाँ क्लिक गर्नुहोस ।

Slim chances of upgrading into middle income country status by 2030: WB

Kathmandu, May 23:

The World Bank (WB) Tuesday said that without comprehensive reforms to addressing its long-standing challenges, Nepal would probably not become a lower-middle-income country before 2030.

“Despite rapid reduction in poverty, Nepal’s development path is not helping it escape from a low-growth trap,” said the bank in a report ‘Climbing higher: Toward a middle income Nepal’.

It said Nepal’s recent history of development was marred by a paradox.

“Many countries in the world have experienced rapid growth but modest poverty reduction, as income has increasingly concentrated in the hands of the wealthy. Nepal, however, has the opposite problem – modest growth but brisk poverty reduction,” reads the report.

Nepal has halved the poverty rate in just seven years and witnessed an equally significant decline in income inequality, but the country remains one of the poorest and slowest-growing economies in Asia, with its per-capita income rapidly falling behind its regional peers and unable to achieve its long-standing ambition to graduate from the low-income status.

Nepal has a plan to graduate to a developing country status from its current least developed country status by 2022 and aspires to become a middle income country by 2030.

“The current state of Nepal’s economy not only reflects the enormous obstacles to development, but also poor policy choices that have resulted in weak performance of the large agricultural sector, low public poor policy choices that have resulted in weak performance of the large agricultural sector, low public investment and capital accumulation, and low productivity growth,” says the Nepal Country Economic Memorandum.

According to the bank’s study, during the past 45 years (1970-2014), Nepal grew at an average annual rate of 4 per cent, while the growth rate of per capita income was the lowest in South Asia, averaging just 2 per cent during this period.

The report has concluded that the large-scale migration was not a sign of strength, but a symptom of deep, chronic problems.

It also noted that the most detrimental aspect of large-scale migration, perhaps, is that it relieves the pressure on policy makers to be more accountable and to deliver results.

“All these factors combined mean that Nepal could be stuck in a low-growth, high-migration equilibrium for years to come. A systematic assault is needed to break the vicious cycle and create the right balance between job creation at home and export of labour,” says the WB’s senior economist and lead author of the report, Damir Cosic.

The report has suggested tackling the persistent challenges of low investment and weak productivity by restructuring its public investment programme, reducing th cost of doing business, integrating the economy with the rest of the world, and intensifying the level of competition in the domestic market in sectors such as transport, logistics and telecommunications.

Nepal under performs in terms of public investments, with an average of 4.5 per cent in 2007-2015 period while the South Asian average in the same period was 7.1, India 7.8 and Ethiopia 15.4 per cent.

Likewise, it has recommended unleashing large investments in hydropower, revitalising the existing sources of growth through reforms in agriculture, improving productivity and releasing labour for new sources of growth, and investing in people.

Speaking at an interaction on the report later in the afternoon, former vice-chairman of the National Planning Commission Dr. Yubaraj Khatiwada said he didn’t buy the pessimistic scenario of the country as presented by the report.

“However, more efforts are needed to save agriculture from dragging the growth rate down. Likewise, we have given more priority to tourism and the small and medium enterprises sector,” he said.

Former finance secretary Rameshwor Khanal said that the country was slow in implementing economic reforms as efforts for the same were pending for a long period of time.

He also noted that it was also the dearth of visionary leadership that was deterring the country from the rapid pace of development.

President of the Federation of Nepalese Chambers of Industry Bhawani Rana said low productivity was the primary reason behind the poor performance of the economy.

She said that wages had been raised, but productivity couldn’t rise in comparison to the wages.

“We need to think about lowering the cost of production and increasing productivity,” she said.

The programme was jointly organised by the World Bank and Society of Economic Journalists – Nepal (SEJON).

Mines-related industry to be recognized as national-priority project

Kathmandu, May 20: The government is to adopt a strategy to categorise the minerals according to their nature and importance, and recognise the mines-related industries as the national priority projects.

According to the recently implemented National Mineral Policy, 2017, high priority will be given to the preservation, promotion and utilisation of minerals.

“Minerals like gold, iron, copper and zinc-lead will be the priority areas for the mines development strategy, and the government will develop necessary infrastructure, such as access road and dedicated electricity line to the promising areas,” read the policy.

Likewise, the industries that produce value added mineral products or produce high-quality minerals would be facilitated with discount in customs duty and would be supported in infrastructure development.

The first ever policy on minerals paves the way for creating database of various mines scattered across the country and were in operation at different period.

According to Director General of the Department of Mines and Geology Rajendra Prasad Khanal, the policy created with the aim of conserving the natural resources and mineral deposits and exploiting them in a sustainable way.

It envisions creating a legal, institutional arrangement and developing a process to develop the mines and mineral sector in a sustainable way so that it can contribute to the economic progress of the country. 

As per the policy, a detailed geological study will be conducted for the mapping of minerals and geological information, and a Mineral Fund will also be created with an aim of carrying out studies on geology and minerals, research and environment protection and development.

 It says that the government will partner with the private sector in establishing industry for the refinement of semi-precious and precious stones, human resource development and training.

Likewise, special discount on customs duty will be provided while importing machines and equipment in extracting and refining minerals.

“There will be a modern central laboratory to manage the geological survey and mineral exploration. Such facilities will be expanded to provincial level if necessary,” said the policy.

It has given special attention to the universities, capacity of the departments at the universities that are related with the mines, minerals and geology will be enhanced.

It also envisions of using modern information and communications technology along with the excavation and extracting technologies, creating other legal instruments required to develop the mines sector, promote Nepalese mineral products in the international market, and involve private sector as well as foreign investors in the development of mines and minerals sector.

The policy has duly identified that because of the lack of relevant policies and legal instruments, sufficient investment, failure to attract the private sector and lack of modern technology and human resource were the hurdles in developing the sector in Nepal.

Nepal had introduced Mines Act, 1956 for the first time while Office of Canals and Geology was established almost 88 years ago which was later converted into Mines Office in 1957.   

Govt to call global tender for petroleum exploration

Kathmandu, May 19: The government is planning to call a global tender to explore for petroleum at multiple points across the country.

The government has identified 10 blocks, from Dhangadhi in the west to Biratnagar in the east, that have petroleum potential, said Minister for Industry Nabindra Raj Joshi while addressing a press conference organised at the ministry on Friday.

According to him, proposals will be called from international companies for petroleum exploration and development in all those blocks.

"There have been remarkable achievements in terms of petroleum sector development process. Petroleum Regulations, 1985 has been amended for the fifth time in order to make timely changes in the legal provisions. The amendment has simplified the modalities and processes of selecting companies for petroleum exploration and development," minister Joshi said.

In order to save the petroleum fields from a low-bidding syndrome and make sure that the country gets due benefits, the ministry has been mulling over awarding the projects to technically capable companies.

"The companies that participate in the tender process will be evaluated on the basis of both technical and economic aspects. We have decided to give 70 and 30 per cent weightage to technical expertise and economic capability respectively," said the minister.

He said that if everything goes as per the plan, within 4-5 years the country would be drilling its own oil.

A high-level government committee had directed the Ministry of Industry (MoI) in March last year to initiate the petroleum exploration process in 10 blocks across the country in the Terai and Chure area.

The Infrastructure Project Monitoring High-Level Committee had even asked the ministry to seek technical assistance from other countries to conduct geological studies.

The government has divided the Terai and Chure hills into 10 exploration blocks, each consisting of about 5,000 square kilometers.

The identified blocks are Dhangadhi, Karnali, Nepalgunj, Lumbini, Chitwan, Birgunj, Malangawa, Janakpur, Rajbiraj and Biratnagar, from 1 to 10, respectively.

Petroleum exploration in Nepal was initiated in the 1990s after a company from the USA, Texana, was allowed to drill to extract oil at two blocks - Banke and Chitwan.

In 2004, a British company, Cairn Energy, obtained license to explore five fields – Dhangadhi, Karnali, Lumbini, Birgunj and Malangawa.

But citing the Maoist insurgency and political instability, these companies continued to shy away from the exploration. Two other companies, BBB Champion and EABG, joined the petroleum exploration bandwagon in 2012, with licenses to explore the Biratnagar and Janakpur blocks respectively.

However, as the companies remained inactive for many years, the government scrapped the licenses of these companies in January 2015.

A Chinese company had come to Nepal for the same purpose after the government made a request to the Chinese counterpart.

But, according to the director general of the Department of Mines and Geology, Rajendra Prasad Khanal, the company is yet to submit its report.

Meanwhile, the government has approved the National Mines Policy, 2017.

The policy is said to increase the contribution of minerals in the economic development of the country, pave the way for Foreign Direct Investment (FDI) in the sector and channelise more government investment into the development of the mines sector.

The ministry has decided to expedite the works to excavate iron ore at Dhaubadi of Nawalparasi district.

Khanal said that the site in Dhaubadi has enough iron ore, where about 3,000 metric tons of iron ore can be extracted per day for 50 to 60 years.

Similarly, the government has also decided to bring the Nepal Metal Company Limited into operation. The company, established three decades ago in Dhading with the aim of extracting zinc-lead ores, couldn't come into operation and had remained dysfunctional for many years.

(Published in The Rising Nepal Daily, May 20)