Governor directs banks to make investment cautiously

Kathmandu, Dec. 29

Governor of the Nepal Rastra Bank (NRA) Maha Prasad Adhikari has directed the banks and financial institutions (BFIs) to apply caution while mobilising credit warning that the inflated deposits may be lent to the risky areas.

Credit is growing in recent months after the months-long lockdown and business closure but you must be cautious in mobilising it as there are risks of investing in risky sectors due to the growing competition, he said while speaking at the annual function of Nepal Bankers’ Association (NBA).

The large funds accumulated in the BFIs has pressurised them to invest it aggressively.

The governor suggested to channelise the investment to the productive sector.

“Private sector lending is gradually increasing. The credit demand was not encouraging in the beginning of the current fiscal year but it has shown good signs now,” said Adhikari.

Class ‘A’ commercial banks alone have mobilised Rs. 4200 billion in deposits and Rs. 3200 billion in loans.

He also said that the central bank had given priority to the electronic payment system.

“We are replacing the traditional payment system with the modern and technological one. Financial infrastructure is already created. So all stakeholders should give priority to the electronic payments,” he said.

NRB has launched a QR code payment campaign and recently implemented it at the Naxal Vegetable Market in collaboration with Sanima Bank. According to the NRB, QR-based payment will reduce the dependency on the imported technology and cards. It’s a safe method in case of COVID-19 like pandemic as well.

Governor Adhikari said that the central bank must use instruments to control wrongdoing in the markets and facilitate the banking industry. However, we are not interested in the micro-management of any bank and financial institutions (BFIs), he said.

Earlier in the programme, Pawan Kumar Golyan, Chairman of Confederation of Bank and Financial Institutions of Nepal (CBFIN), had said that NRB’s micro-management wouldn’t have good impacts so the central bank should work it in coordination with the NBA.

He also said that there were multiple changes in the Monetary Policy of 2020/21 in the past five months which had created confusion among the bankers and customers.

On the occasion, NBA facilitated former Governor of the NRB Satyendra Pyara Shrestha.

He said that saving and investment were key to the growth of the economy and development of the country.

Bhuvan Dahal, President of the NBA, said that the technology-based banking had been expanded to rural and remote areas as well.

Commercial bank’s capital fund is above the NRB-set limit so the depositors must not be worried about the safety of their deposit, said Dahal.

Chief Executive Officer of Agricultural Development Bank Limited Anil Upadhyaya has been elected unanimously as the Vice-president of the association. Likewise, Santosh Koirala of Machhapuchchhre Bank Limited and Deepak Kumar De of Nepal SBI Bank Limited are elected as the members.

Published in The Rising Nepal daily on 30 December 2020. 

Govt relief instrumental in SMEs rehabilitation

Kathmandu, Dec. 30

The relief programmes announced to rehabilitate the COVID-19 affected business and enterprise has proven effective for the small and medium enterprises (SMEs).

More than 33,000 small clients that had up to Rs. 1.5 million bank loan portfolio have obtained the government financial relief. The Nepal Rastra Bank (NRB) has approved the refinancing package worth Rs. 82 billion.

“SMEs and vulnerable businesses have been particularly benefitted by the relief and rehabilitation programmes of the government and the central bank,” said Maha Prasad Adhikari, Governor of the NRB, in a virtual interaction with the Nepalese Association of Financial Journalists on Wednesday.

Likewise, about Rs. 9 billion relief to the businesses and industries has been provided with the 2 per cent discount in interest of bank loan.

“Relief programmes are being gradually utilised by the needy businesses. Currently, there is enough liquidity in the system and a sizable number of entrepreneurs are utilising their own funds in the post-lockdown situation. The government-announced relief programmes would be fully subscribed within a couple of months,” said Adhikari.

Likewise, private sector lending has increased significantly in the last two months of 2020 which has given hope to both the banking industry and economy.

He said that the central bank had given priority to maintaining liquidity in the market and ensuring that the enterprises do not experience resource crunch when they need it.

According to him, the financial sector regulator has been planning to evaluate the banks and financial institutions (BFIs) on the basis of their implementation of the special relief packages announced in the wake of the coronavirus pandemic.

This kind of evaluation would be made after April 2021 while the bank’s contribution to the relief programmes would be measured after the second quarter of the current fiscal year 2020/21.

Governor Adhikari also said that the economy did not contract as it was expected earlier this year. “The recovery trend is quite good globally and it is replicated in Nepal as well. Only 6 per cent businesses were running in full capacity in May this year while the number has gone up to 57 per cent in December,” he said.

Construction and trading sector are doing particularly well while tourism is the sector that will have a delayed recovery.

Published in The Rising Nepal daily on 31 December 2020. 

Chinese delegation calls on Prez, PM

Kathmandu, Dec. 28

 The Chinese delegation led by Guo Yezhou, Vice-Minister of the International Department of the Chinese Communist Party, paid a courtesy call on President Bidya Devi Bhandari and Prime Minister KP Sharma Oli on Sunday.

Guo conveyed New Year 2021 greetings from Chinese President and General Secretary of CCP Xi Jinping to Prime Minister and Chair of the Nepal Communist Party (NCP) Oli.

The Chinese side has expressed their happiness over the deepening and widening relations between our two countries and the two parties based on mutual interest and mutual respect, said Dr. Rajan Bhattarai, Prime Minister Oli’s Foreign Affairs Advisor.

“Guo said that both our countries and parties have been enjoying excellent bilateral relations since a long time and furthermore in recent years, both the countries are able to promote and strengthen bilateral relations into a newer height in many areas,” said Dr. Bhattarai.

Guo further said that being a close neighbour and a friend of Nepal, China had been providing support and assistance in each and every sector of Nepal and assured continuation of such support in the days to come as well.

According to Dr. Bhattarai, Guo also mentioned the high level visits made by both the countries in the past and visit made this time have always helped understand further each other and also contribute to promoting relations both at the State and people’s levels.

The four-member delegation that arrived in Kathmandu on Sunday also called on  Pushpa Kamal Dahal Prachanda, chairman of  NCP (Prachanda-Nepal faction) on Monday morning at the Khumaltar-based Dahal residence where they discussed the bilateral relations between the two countries and two parties.

Guo also met chairman of NCP (Prachanda-Nepal Faction) Madhav Kumar Nepal and senior leader Jhalanath Khanal on Monday.

Published in The Rising Nepal daily on 29 December 2020. 

DoC plans to expand virtual monitoring of customs offices

 Kathmandu, Dec. 28

The Department of Customs (DoC) is mulling to expand the virtual monitoring system to new customs offices across the country.

The central virtual monitoring system at the head office is currently monitoring 14 customs offices where ASYCUDA World System is in operation.

The ASYCUDA is in operation in 24 customs offices. ASYCUDA (Automated System for Customs Data) is a computerised system that helps to administer a country’s custom operation.

“The DoC is effortful for further reforms in customs operation with the application of modern technology. Making the activities more transparent is our priority,” said the Director General of the department Suman Dahal in an interaction with the Nepalese Association of Financial Journalists (NAFIJ) on Monday.

The implementation of the national single window system will digitise major government services including trade, transport and logistics which will make the customs operation faster, less costly and transparent, he said.

Deputy DG Shyam Prasad Bhandari said that the reform initiatives have contributed to minimising the wrongdoing. “We are coordinating with the customs offices of other countries and the World Trade Centre in implementing the reforms and transferring the technologies,” he said.

Showing the recently built referral laboratory at the head office, DG Dahal said that the facility had ultra-modern equipment to detect metals as well as natural ingredients.

The establishment of the lab has discouraged the smuggling in disguise and sub-standard food and medicine.

The machine has the capability to tell the exact amount of the metals mixed in a particular items like jewelleries and toys.

It can tell you if any toys has harmful elements or any food item is inedible, said Ishwor Koirala, head of the lab.

The proper identification of the ingredients in a product helps to define its export import code as well.

Minister Aryal announces to establish fertiliser storages in seven all provinces

Kathmandu, Dec. 27

 Newly appointed Minister for Agriculture and Livestock Development Padma Kumari Aryal said on Sunday that the government would create infrastructure to store chemical fertilisers in all seven provinces.

Assuming her new responsibility at the Ministry of Agriculture and Livestock Development (MoALD) at Singhadurbar, she said that she was committed to resolving the problem of chemical fertilisers, which the farmers were facing for years.

Prime Minister KP Sharma Oli has stationed Aryal at the MoALD changing her earlier responsibilities of the Ministry of Land Management, Cooperatives and Poverty Alleviation after Ghanashyam Bhusal resigned.

She said that storage facilities with 25,000 tonnes capacity would be created in each province.

“There will be no fertiliser shortage from the next year. The storage facility will be used to maintain the required amount of fertilisers so that the farmers need not to be worried,” she said.

She also said that the ministry would launch a one-door system to mobilise subsidised fertilisers, seed, agricultural inputs and technology, and grants, agriculture insurance and loans by March next year.

“Real farmers will be benefitted by the new system,” said Minister Aryal.

According to her, Prime Minister Agriculture Modernisation Project will be revised as per its objectives so that it will be more result-oriented. “The ministry will also initiate work to address the constraints faced by the farmers like poor access to the market and under valuation of their produces,” she said.

She said separate agencies would be created to monitor the agriculture and livestock markets.

 Minister Aryal also said that the government would establish storage facility in the Terai-Madhesh for rice, and resolve the issues of sugarcane farmers.

“The MoALD will immediately coordinate with the Ministry of Industry, Commerce and Supplies to address the problems of the sugarcane farmers,” she said.

Published in The Rising Nepal daily on 28 December 2020. 

Health Ministry will be more transparent: Minister Tripathi

Kathmandu, Dec. 27

 Newly appointed Minister for Health and Population Hridayesh Tripathi said that he would deal transparently with every issue related to the Health Ministry.

Assuming his post on Sunday at the Ministry, he reiterated that the government would vaccinate all citizens against COVID-19 at its expenses.

“The government has achieved success in controlling the coronavirus pandemic. The vaccine will be available to all, free of cost,” he said.

Minister Tripathi also made policy decision to start the construction of additional 262 basic hospitals across the country.

With an aim to establish at least one hospital in all local levels, the government had commenced the construction of hospitals in 396 local units.

“The government will start the construction of hospitals in the remaining local levels. Within two to three years, every local unit will have their own hospitals, it will be a revolution in health sector,” he said.

 Published in The Rising Nepal daily on 28 December 2020. 

Prez urges private sector to build self-reliant economy

Kathmandu, Dec. 27

President Bidya Devi Bhandari has suggested that the private sector contribute to employment generation and creation of self-reliant economy through the development of businesses and industries.

“Nepal is lagging behind despite having great potential. We are rich in natural resources and there is no problem of market as well but the country has been unable to attract enough investment,” she said in a meeting with the newly elected office bearers of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) at Shital Niwas on Sunday.

According to her, the state should give priority to the promotion of domestic investment because increased mobilisation of the domestic investment attracts more foreign investors to the country.

She said that the government should collaborate with the private sector for the development of key economic sectors like agriculture, energy and tourism as they could help in building self-reliant economy. 

She urged the businesspeople to think and work about the ways to end the situation to leave the country for employment abroad.

President Bhandari also expressed concerns over the increasing trade deficit and stated that the entire country must be serious about producing the essential goods in the country.

She rested her hope on the newly elected young leadership of the largest business organization in the country.

President of the FNCCI Shekhar Golchha said on the occasion that his organisation was working on a vision paper for the reputable private sector and prosperous country.

He said that major support was needed to bring the small and medium enterprises (SMEs) out from the impact of COVID-19. “A special COVID-19 recovery package is needed to support the private sector businesspeople, especially for the SMEs. If they run well, large industries will also run well,” he said.

Golchha also said that the private sector wanted effective implementation of the relief programmes announced by the central bank.

According to him, the vision paper will set a target to creating 400,000 employment annually and achieving the double digit economic growth. He said that the public-private cooperation was a must to stop the economy from further deterioration.

The FNCCI delegation also said that the areas of comparative advantage should be promoted, national pride projects completed at the earliest and employment generation given priority.

Published in The Rising Nepal daily on 28 December 2020. 

Five years on, NRA claims 90% progress but many monuments still lie in ruin

Kathmandu, Dec. 26

While reconstruction of heritages like Ranipokhari and Dharahara caught the attention of many including the media, the real progress in post-quake rebuilding has happened at the reconstruction of private houses.

According to the mobilisation of the housing grant, progress at private house rebuilding is more than 90 per cent. As much as 77 per cent of the beneficiaries that signed the grant agreement with the government have obtained the final instalment of the grant and 85.7 per cent have received the second instalment.

According to the National Reconstruction Authority (NRA), households obtaining the third and second instalment of the grant are 613,613 and 681,327 respectively. It is said that the rebuilding of 558,799 houses is completed by Friday.

A family becomes eligible for the final tranche of the grant only after completing the house up to the plinth level which means the construction of about 54,814 houses is in the process of completion.

“Additional 168,083 houses would be reconstructed by the end of the current fiscal year 2020/21,” said the NRA.

The devastating 2015 Gorkha Earthquake had destroyed more than a million structures in 32 districts across the country. The government had surveyed 1.03 million houses and found 834,911 of them eligible for the housing grant of Rs. 300,000. However, the grant agreement was signed with 794,977 families.

Chief Executive Officer of the NRA Sushil Gyawali said in a programme organised to mark the completion of five years of the reconstruction body the other day that the overall progress in post-quake reconstruction was at 90 per cent.

About Rs. 339 billion is spent in the rebuilding drive so far. Estimates made in the aftermath of the earthquake in 2015 said that it would take about Rs. 488 billion for the five-year reconstruction and rehabilitation drive.

The amount is mobilised in the reconstruction and rebuilding of private housing, educational and health facilities, government buildings, heritages, road and water supply infrastructure, said Gyawali.

He stated that the reconstruction body planned to complete all the work related to the private houses rebuilding by the end of this fiscal while the remaining work in other sectors would be handed over to the concerned agencies. The NRA had set the deadline to obtain the first instalment by the end of December 2020, second instalment by mid-February 2021 and third one by May next year.

The government had extended the tenure of the NRA by one year. Earlier, it had a five-year term which would end by December 25, 2020. To institutionalise the experience of the post-quake rebuilding and inform the world about the good practices, the reconstruction body is organising an international conference.

However, progress at heritage reconstruction is slow. Of the damaged 920 historical and cultural monuments, only half have been rebuilt so far. Seventy-eight are under construction while the rebuilding of other 377 is not started yet.

Reconstruction of structures at the Hanuman Dhoka Durbar Square is in the final stage while it would take more than two years to restore structures like stupas and Nuwakot Palace.

Reconstruction and retrofitting of 356 health institutions is also not started yet. The total target for the health sector reconstruction and retrofitting was 544 and 653 facilities respectively. Similarly, the reconstruction of security agencies’ buildings is also witnessing slow progress as the reconstruction of 167 buildings is yet to start.

Published in The Rising Nepal daily on 27 December 2020. 

Naxal veg market applies QR code payment

Kathmandu, Dec. 25

Use of Quick Response (QR) code payment has been launched at the Naxal Vegetable and Fruit Market since Friday.

Governor of the Nepal Rastra Bank (NRB) Maha Prasad Adhikari inaugurated the news technology-enabled payment system at the market with a purchase of vegetable and scanning QR code for the payment.

“The central bank will expand this facility across the country as a campaign. It will contribute to making the entire economy technology-friendly,” he said.

He said that the service would promote cashless payments and help in economic and social transformation of the country. According to him, the payment through QR code scan is increased in recent months and has witnessed about 30 per cent increment in such transactions each month.

The NRB is ready to promote and facilitate the QR code-based transactions so the banks and financial institutions should make preparations for it, he said.

President of Nepal Bankers Association Bhuwan Dahal said that the BFIs were elated with the campaign for QR code based payments and were ready to collaborate with the central bank in the promotion and expansion of the service.

Chair of the Naxal Vegetable and Fruit Market Management Committee Bishnu Sapkota stated that the market had entered into technology-friendly environment with the application of QR code.

 The QR code based payment in the market is launched in cooperation with Sanima Bank.

Published in The Rising Nepal daily on 26 December 2020. 

Chamber expresses concerns over border obstructions

Kathmandu, Dec. 25

Nepal Chamber of Commerce (NCC) has expressed serious concerns over the prolonged disturbance at the northern border entry point in Rasuwagadhi and Tatopani.

Goods imported by Nepali traders has been stuck at the Chinese side for the last seven months. The border was closed for months in the wake of the COVID-19 pandemic and was partially opened in October with the provision to allow just five containers a day.

This provision has resulted in Chinese custom agents demanding additional money for the clearance of the containers and trucks. They are asking as much as 50,000 RMB (about Rs. 900,000) for a container to pass the border.

“Hundreds of traders are suffered for past many months. Many industries couldn’t import raw materials and witnessing loss in their business,” said Rajesh Kazi Shrestha in a programme NCC organised to welcome the newly elected working committee members of the Nepalese Association of Financial Journalists (NAFIJ).

Clothes that were due to enter Nepal in January last year are still stuck at the other side of the Chinese border. How can the bilateral trade be conducted between the two neighbours in such condition? Questioned Shrestha.

He urged China for the seamless flow of goods through the border. “China has shown a dual character with Nepal in the name of COVID-19. It either should completely shut the border or facilitate the trade,” he said.

Goods worth hundreds of million rupees are stuck at the border while traders are facing trouble to manage goods to supply in the market, said Niraj Rai, chairman of the Customs Committee at the NCC.

Senior Vice President of the NCC Rajendra Malla said that the government should increase the base of tax instead of its rate. It shouldn’t just focus on the customs duties, he said.

He also demanded to bring the middlemen to the tax net in order to discourage the exploitation of the producers and consumers.

NCC also expressed serious concerns over the recent political bickering fearing that the economic agenda might be pushed to back seat.

It has urged the media to give hope to the people and the investors so that the business that is trying to recover after the deadly blow of the coronavirus pandemic could be promoted.

Published in The Rising Nepal daily on 26 December 2020. 

Stock dealer’s license in a week: SEBON

Lalitpur, Dec. 24

The Securities Board of Nepal (SEBON) is all set to issue license to a new stock dealer.

“The board will issue the license to stock dealer company within a week,” chairman of the SEBON Bhisma Raj Dhungana said while welcoming the newly elected Working Committee members of the Nepalese Association of Financial Journalists (NAFIJ).

Nagarik Stock Dealer Company Limited promoted by Citizen Investment Trust (CIT) has been awaiting the license. The capital market regulator has given green signal to the license as the company has prepared all required infrastructure for the operation of the company.

Similarly, the stock brokers’ commission will also be slashed with the New Year 2021. The SEBON had conducted a study to determine the modality of the broker’s commission and now it is working to finalise the rate of the charges.

“However, it is not yet fixed if the commission rate would be brought down since all the market stakeholders are getting commission from the brokerage charges. We are mulling if the commission should be separately charged for each entities,” said Dhungana.

According to him, the regulator would take a wise decision so as not to disturb the market orientation and hurt the investors’ confidence at a time when the market is continuously going up.

The stock market has witnessed an unprecedented growth in recent months. It’s making new records despite untoward political happenings.

Currently, the secondary market transaction costs 0.6 per cent to 0.4 per cent commission. 0.6 per cent commission is charged for the shares transaction of up to Rs. 50,000 and 0.55 per cent for transaction of Rs. 50,000 to 500,000. Likewise, 0.5 per cent commission is levied for transaction of Rs. 500,000 to Rs. 2 million, 0.45 per cent for Rs. 2 million to Rs. 10 million transactions and 0.4 per cent for the business above Rs. 10 million.

“Stock market transaction has reached 25 per cent of the market capitalisation against 7-8 per cent until last year. It should reach up to 40 per cent,” said Dhungana. “The market is making new records every day,” he added.

He also said that license to commodity exchange will also be issued soon.

The capital market has also witnessed a massive growth in online shares transaction in recent months. Online transaction has increased to 220,000 from last year’s 22,000. The share market capitalisation to GDP ratio has reached 73 per cent this year from 43 per cent last year.

Dhungana said that programmes like bank integration, broker TMS reform, electronic reporting system and e-KYC are in the pipeline.

Likewise, spokesperson of the SEBON Niraj Giri said that since stock market is a risk market, media had an important role to inform and raise awareness. “Media must help the investors take informed decisions about their investment,” he said.

Published in The Rising Nepal daily on 25 December 2020. 

Private sector express concerns over looming political uncertainty

Kathmandu, Dec. 23

The private sector on Wednesday urged all political parties to take wise decision so as not to hurt the economy and take the country to the path of political stability.

Issuing a joint statement, three representatives business bodies, the Federation of Nepalese Chambers of Commerce and Industry, Nepal Chamber of Commerce and Confederation of Nepalese Industries, urged all political parties to have patience and take a wise decision to maintain political stability during the current challenging scenario.

Expressing concerns about the latest political development in the country, they said, "The private sector always wants political stability. It's known to all that we had continuously recommended for the political stability in the past."

Political stability paves way for policy stability which results in more investment attraction, business promotion, employment generation and the entire economy is benefitted from it. No one should forget it, read the statement.

The private sector organisations have expressed worries over the results of the political instability created during the COVID-19 pandemic which has devastated the economy.

The economy was witnessing a gradual growth and livelihoods were being restored. Likewise, political uncertainty will also have negative impacts on the development works as well, they said.

Earlier on Monday, Nepal Foreign Trade Assocition said that the political uncertainty could negatively impact the business and people.

Publised in The Rising Nepal daily on 24 December 2020. 

Insurance service reaches 25 per cent people

Kathmandu, Dec. 23

Chairman of the Nepal Insurance Board (NIB) Chiranjibi Chapagain has said that the reach of insurance has reached 25 per cent population from 7 per cent four years ago.

"The reach of insurance was about 7 per cent while I assumed the post of board's chairman. The reach was increased to 27 per cent including the foreign employment term insurance but the COVID-19 pandemic impacted its growth," he said while welcoming the newly elected working committee members of the Nepalese Association of Financial Journalists (NAFIJ) on Wednesday at his office in Kupondole, Lalitpur.

According to him, the board had put its efforts to get the Insurance Act ratified by the parliament, but the process was slow, and it could only reach the Cabinet. The Cabinet had once discussed about it and was about to send to the parliament. However, the recent political manoeuvres had pushed the law-making process uncertainty for a few months.

Chapagain's term to the post will be over after a couple of weeks.

According to him, he worked to enhance awareness about insurance and its reach. The NIB had established a Rs. 50 million training centre in collaboration with the insurance companies. Insurance sector employment has reached to 10,000 from erstwhile 2,000 while number of insurance agents has quadrupled.

Speaking on the board's media relations, he stated that dissemination of right information would benefit both the media and the regulator.

Published in The Rising Nepal daily on 24 December 2020. 

Foreign Policy underscores environmental diplomacy

Kathmandu, Dec. 22

Nepal has given high importance to climate change and mitigation of its impacts and minimisation of greenhouse gases in its recently launched Foreign Policy, 2020.

It has included a separate article on the issue and 17-point strategy and action plan while reduction of climate change impacts is included as one of the key objectives of the policy which is said to be the first integrated document on the foreign affairs matters.

Minister for Foreign Affairs Pradeep Kumar Gyawali had launched the policy with ecological balance, human safety and earth’s protection earlier this month.

The country aims at playing an effective role reducing the greenhouse gas emission and adaptation to combat with the challenges of climate change and its negative impacts.

It aims at playing an active role at the United Nations and other international platforms and playing leading role in climate change issues by uniting the mountain and other countries.

Protection, promotion and utilisation of natural resources to mitigate the impacts of environmental degradation and climate change and achieve the Sustainable Development Goals (SDGs), and attracting needed financial as well as technical support for it are the strategies included in the policy.

“Emphasis would be given to the implementation of polluters pay principle, common but differentiated responsibilities and carbon trading provisions,” read the document.

Nepal also aims to establish the contribution of Sagarmatha and Himalayan region in storing of sustainable water resources, minimising negative impact of climate change, maintaining ecological balance and cultivating human civilisation.

The policy has action plans like promoting Nepali herbs and wild animals and preservation of bio-diversity, promoting high mountains as the resource for bio-diversity, and promotion of renewable energy and green development. The country aims at presenting itself as a carbon-neutral country at international forums.

 

Challenge to manage resources

The Foreign Policy, 2020 has clearly spelled out the challenges to the implementation of the strategy against the climate change impacts and ecological disturbances.

Managing sufficient financial resources and technology to combat the negative impact of the climate change and establish the agenda of mountain countries in the international policy making process is the greatest challenge for the country like Nepal which is struggling hard to collect resources for basic development work.

It also needs foreign aid during the pandemics and large natural disasters.

Enhancing the competitive capacity after Nepal’s graduation from the least developed country (LDC) and maintaining trade facilities are also mentioned as the key challenges.

However, the clarity on national development, environment for greater regional cooperation on the issue, and business and investment-friendly climate in the country are mentioned as the positive milestones towards the climate change management.

Minister for Forests and Environment will be included in the Steering Committee for direction, supervision, monitoring and evaluation of the policy and secretary of the ministry in the Coordination committee to support and cooperate in the implementation of it.

Published in The Rising Nepal daily on 23 December 2020. 

GIBL supports care centre

Kathmandu, Dec. 22

Global IME Bank Limitedhas provided Rs. 250,000 for the construction of Nagarik Care Centre building in Biratnagar.

Bank’s State 1 chief Subhash Sapkota has handed over the amount to Coordinator of the centre Pawan Kumar Sharda in a programme organised at Morang Byapar Sangh.

Sharda appreciated the bank for its support. 

GIBL has expanded its reach to 73 districts with 264 branches, 239 ATMs, 47 extension counters and 241 branchless banking service centres.

Published in The Rising Nepal daily on 23 December 2020. 

IBN planning to hold investors’ summit in Indian cities

Kathmandu, Dec. 19

The Investment Board of Nepal (IBN) is making preparation to hold investors’ interaction programmes in different cities across India.

"To attract Indian investment to Nepal, we are planning to interact with the potential Indian investors about their preferences and priority sectors," said Chief Executive Officer of the board Sushil Bhatta in a meeting with the delegation of Nepal-India Chamber of Commerce and Industry (NICCI) the other day.

He expressed his readiness to collaborate with the bi-national chamber in 'Nepal-India Partnership Summit'.

On the occasion, NICCI drew attention of the IBN to the declining Indian investment in Nepal.

To address the issue, it is planning to hold a 'Nepal-India Partnership Summit' and sought IBN's partnership in the event that would be organised interchangeably in Nepal and India annually.

NICCI's Vice-President (VP) Sunil KC informed Bhatta about the plan to establish Nepal Innovation Centre in New Delhi, the capital city of India. The centre would facilitate Indian investors who want to invest in Nepal.

"Indian investment in Nepal is declining in recent years. So, we want to organise various events to draw investment from the southern neighbour. Partnership with the board is important and necessary in this regard," he said.

He also requested for IBN's help in forging a tripartite memorandum of understanding among NICCI, IBN and Indian Embassy to effectively coordinate with the investors.

"Attracting investment in Nepal is the common interest and objective of NICCI and IBN. So we want a strong collaboration with the board and the embassy," said KC.

Another VP, Saibal Ghosh, said that addressing the problems of the businesses and industries running with foreign investment in Nepal was urgently needed.

"Businesses with foreign investment are facing various problems such as intellectual property rights, brand registration, approval for test marketing, etc. They should be addressed as soon as possible. The issues of intellectual property rights have not been resolved in the past decade although there was a strong demand for the same," he said.

He added that contract manufacturing should also be opened and the ceiling of payment to the services acquired from the foreign companies should be raised.

Currently, the business and industry can pay Rs. 100,000 from banks but the services like software and machine repair cost higher and so need the approval from the Department of Industry and should be paid through it.

In response, Bhatta said that the IBN was serious about attracting Indian investment to Nepal and the board was working for it.

He said that the board was positive about the demands raised by the bi-national chamber.

A delegation led by NICCI's President Srijana Rana, including VPs KC and Ghosh, Treasurer Gyanendra Lal Pradhan, Director Keshav Man Singh and Administrative Officer Marshal Rathour met with Bhatta.

Published in The Rising Nepal daily on 20 December 2020. 

Govt intends to hold public-private dialogue for ICT sector

Kathmandu, Dec. 18

The government has expressed its desire to hold public-private dialogue for the development and growth of the information and communication technology sector in the country.

Speaking at the 'First Industry – Government Dialogue: Bridging the gap for ICT growth' in the Capital on Friday, Minister for Finance Bishnu Prasad Paudel and Minister for Communication and Information Technology Parbat Gurung and Vice-Chairman of the National Planning Commission Prof. Dr. Pushpa Raj Kandel have expressed their desire to listen to the recommendations and grievances of the private sector in the ICT industries.

The event was organised by the Computer Association Nepal Federation (CAN Federation).

"The Ministry of Finance and Ministry of Communication and Information Technology are ready to hear your voice and grievances. Let's sit together and find ways to apply technology for the advancement of the society and economic growth," said FM Paudel.

Stating that the adoption of modern technology is key to growth, he said that the demand for a separate mechanism's creation for the implementation of Digital Nepal Framework was appropriate and the government would find ways to address the demand.

"I would like to urge the private sector representatives to organise a sectoral discussion about the challenges and opportunities in the business and recommend the government for the policy need. CAN Federation can lead in the process," he said.

Minister Gurung said that the government would host a special event to have public-private dialogue in order to find the ways to facilitate the industry.

"MoCIT will organise a summit to bring together public and private sectors together to discuss the challenges in the industry and find possible solution," he said.

According to him, Nepal must have technology-friendly and technology-enabled business and services as soon as possible and human resources should be produced to cater to that need.

"Expansion of ICT services to the remote areas and mountains. This is a challenge. I seek private sector's support in bridging this technological and knowledge gap within the nation," said Gurung.

He also stated that the government would like to channelise the Corporate Social Responsibility (CSR) of IT companies to the areas where there is a need to establish IT facilities.

Prof. Kandel said that the government policy has conceptulised the IT as a supportive instrument for the growth of other business sectors but no one has thought that it could be a driver of the growth itself.

He also expressed his desire to coordinate among the government agencies for the public-private dialogue.

 

QR campaign in the offing

Governor of the Nepal Rastra Bank Maha Prasad Adhikari said that the central bank was planning to launch a QR campaign soon and it would be expanded to vegetable markets as well.

"Our aim is to digitalise the payment even in the rural grocery stories and vegetable markets in Kalimati," he said, "Good governance index of the countries that have cashless system is good."

Nine digital payment operators and vendors are in operation in the country.

 

High taxes

Experts said that the ICT was one of the heavily taxed industry in Nepal which had resulted in higher cost of internet and other ICT-related services.

Purushottam Khanal, Chairman of the Nepal Telecommunication Authority, also said that tax in the telecom and internet services must be brought down.

He also said that expansion of electricity is fundamental for the development of ICT in remote areas.

Industry leaders said that Nepali business houses use less Nepali software.

"Almost all commercial banks and telecom companies use foreign software. It might be because of lack of high-skilled software, customistion and trouble shooting or after sales services," said Ram Prasad Dhungana, member of Software Committee at CAN Federation.  

Shekhar Golchha, President of Federation of Nepalese Chambers of Commerce and Industry, said that electronic payment and signature must be promoted.

He also said that the government should facilitate young entrepreneurs with better investment and business environment. "Cumbersome process and administrative hurdles have discouraged the IT entrepreneurs most of who are young and enthusiastic," he said.

CAN Federation President Nawaraj Kunwar also suggested to lower the taxes and customs duties in order to facilitate the businesses in the sector.

A recent survey has shown that there are 5-7 mobile or computing devices in a household. Devices per household has gone up during the pandemic. About 77 per cent people have access to internet. The IT industry has about 5 per cent contribution to the GDP of the country.

 Published in The Rising Nepal daily on 20 December 2020. 

Family of those who died of virus abroad to get Rs. 50, 000

Kathmandu, Dec. 18

IME Group has supported the family of Nepali who died of COVID-19 disease in foreign land with Rs. 50,000.

The business group started the distribution of the money from the fund named 'IME Bharosa Kosh', by organising a programme in the capital on Friday.

Chairman of the Group and Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal and Managing Director of the Group Hemraj Dhakal jointly handed over the cheque of the amount to the applicants available in the Kathmandu Valley.

Concerned families can obtain the payment from IME Pay, an electronic payment platform, and IME is planning to distribute the support by mid-January next year.

It has announced to give the money to the families who lost their relatives to COVID pandemic in foreign land from January 1 to October 16, 2020.

he relatives had applied for the money at IME Group's head office in Panipokhari and provincial offices with valid documents.

Chairman Dhakal said that the group's motive was to provide a small relief to the families in grief. "We have established the fund with a pious motive of supporting the families in grief and trouble," he said.

Brand Ambassadors of the IME Dipak Raj Giri and Deepa Shree Niroula said that the fund was an important social step from a business group.

Published in The Rising Nepal daily on 19 December 2020. 

Basera opens its door to tourists

Kathmandu, Dec. 17

Basera Boutique Hotel in front of the Singha Durbar has come into operation. The hotel management has organised a soft launch programme to commence its operation as the fear of coronavirus gradually decreases.

Expanded in 36 Aana area and located at the premium location besides the South Gate of the country’s administrative centre-Singhadurbar, the hotel features typical Nepali design and look.

“We want to exhibit Nepali culture, food and hospitality at Basera. The concept was to have indigenous design and attraction. It supports local entrepreneurs and traders while we can’t construct better modern structure compared to hotels in foreign land,” said Helen Ghimire, Manager of the hotel.

The construction of hotel was started six years ago. “It took about five years to create wood arts such as windows, doors, furniture and ceilings to be used in the hotel,” said Ghimire. The hotel has spent about Rs. 200 million in wood items.

The use of wood carvings had sent the construction costs and time up by 30 per cent.

Basera has 60 rooms and 90 beds, three restaurants – Nepali, continental and day menu. Conference hall can accommodate about 300 people and can be partitioned into three different rooms as per need.

The hotel has employed 40 people now and will employ about 100 when it runs in full capacity. It is charging about Rs. 6,000 per night with bed and breakfast. “Rooms are expensive compared to other hotels around. But consultants have suggested to charge up to US$200,” said the hotel.

Published in The Rising Nepal daily on 18 December 2020. 

Private Equity Association comes into existence

Kathmandu, Dec. 17

Nepal’s prominent private equity and venture capital firms have come together to set up the Nepal Private Equity Association (NPEA).

The objective of the association is to promote alternative investment activities by bringing together stakeholders in Nepal’s expanding entrepreneurial ecosystem, the newly formed organisation said in a statement on Thursday.

The NPEA, incorporated as a profit non-distributing entity under the Company Act, will be governed by a Board of Directors and administered by a small team of professionals.

Accelerator Nepal, Business Oxygen (WLC Ventures), Dolma Advisors, One to Watch, Team Ventures and True North Associates are the founding members of the association.

Suman Joshi chairs the founding board that has Siddhant Pandey, Bidhya Baridhi Sigdel, Anupam Man Chhantyal and Tenzin Sonam Gonsar as members.

“Alternative or specialised investment activities have been bubbling in Nepal for the past few years. A number of investment firms, private equity funds and venture capital providers have been investing in Nepali businesses and helping them grow,” said Joshi.

Ancillary service providers like legal, business incubation and accelerators have also been very active in contributing to the ecosystem. Regulators have begun to acknowledge the existence of and the need for institutions working in the alternative investment space.

“We have come together to formally incorporate Nepal Private Equity Association in order to set high standards for the alternative investment industry,” said Joshi.

In addition to relevant research activities, the Association will conduct various programmes and initiatives in the forms of training, workshops and networking events catered towards upskilling of professional practitioners in the private equity/venture capital space, it said.

Published in The Rising Nepal daily on 18 December 2020. 

Govt spending improves, revenue suffers

Kathmandu, Dec. 16

Coronavirus pandemic has badly hit business and economy across the globe but Nepal's macroeconomic indicators of the first four months of the current fiscal year tell otherwise.

While various sectors of the economy such as tourism, education, construction and industry are still contracted and struggling to bounce back with their efforts and government support, the government's expenditure, including the development budget mobilisation, has gone up in the first four months of FY 2020/21.

According to a report published by the Finance Ministry on Wednesday, the total expenditure of the government this year increased by 19.1 per cent to reach Rs. 269 billion against last year's Rs. 226 billion.

The capital expenditure has registered growth of about Rs. Rs. 3.39 billion this year with total spending of Rs. 29.44 billion. It began to show improvement from mid-September to mid-October as the expenditure jumped to Rs. 15 billion from Rs. 3.75 billion a month earlier. Recurrent expenditure and financial provision have also gone up. The following month witnessed the doubling of capital expenditure.

The ministry has noted that although development works and private sector construction have not picked up yet, increased economic mobilisation has contributed to improved indicators.

Federal government's income is up by 1.1 per cent and has reached Rs. 240 billion while total receipt is increased by 21.2 per cent. It has witnessed Rs. 20.9 billion revenue deficit and Rs. 29.2 billion budget deficit.

The number of people showing readiness to pay the taxes has also significantly increased despite the threats posed by the COVID-19 pandemic. As much as 163,134 Nepalis have obtained Personal Permanent Account Number (PPAN) in the four months period and 77,621 got the Business Permanent Account Number (BPAN).

With this, the government has issued about 3.57 million PANs.

According to the Finance Ministry, Nepal received Rs. 90.5 billion in foreign aid this year against Rs. 15.6 billion of last year. However, the share of loan has significantly gone up compared to the previous year. The share of grant is 14.2 per cent this year while it was 78.8 per cent last year.

Likewise, goods exports in first four months this year was up by 10.8 per cent and reached Rs. 40.2 billion. The number of companies registered during the crisis has also gone up by 6.2 per cent which is the indicator that business confidence is building gradually.

The inflation rate came down to 3.79 per cent in mid-October which was 6.21 last year.

Similarly, remittance inflow has also increased by 12.6 per cent in the first three months this year and reached Rs. 258.86 billion.

 

Revenue suffered

However, revenue collection is impacted by the pandemic as many businesses couldn't come into operation while many are running in low capacity. While the government has met the revenue target in customs duty and income tax with the mobilisation of 101.74 per cent and 105.55 per cent revenue respectively against the target, Value Added Tax, excise duty and non-tax revenue have gone significantly down.

Government could collect only 94 per cent tax revenue of its target while non-tax revenue was just 64.69 per cent of the target.

It collected Rs. 226.03 billion tax revenue against the target of Rs. 240.4 billion and received Rs. 14.1 billion non-tax revenue against the target of 21.81 billion.

One of the significant losses was seen in service income which contracted by 53.9 per cent and reached Rs. 19.6 billion against Rs. 42.5 billion of the last year. Likewise, services spending has also gone down by 37.8 per cent.

This loss was due to the closure of the tourism and hospitality sector. From April to October this year, only 3,059 tourists entered Nepal of which 1,874 came in October alone, read the report.

Similarly, the number of migrant workers seeking working labour permission has decreased by 95.7 per cent. Just 3,463 workers obtained the permission while 79,680 had received such permission in the first four months of the last fiscal year.

Published in The Rising Nepal daily on 17 November 2020. 

TRN asked to reform design, content to retain readers

Kathmandu, Dec. 15

On 16 December 1965, the country witnessed the publication of the first broadsheet daily. 

It was ‘The Rising Nepal’. Although it was the third English newspaper to be published from Nepal, it was the first full-size newspaper which attracted the attention of many.

With its continuous publication for about 55 years, it has become the paper that survived the longest, partly because it was state-funded medium. Its English predecessors ‘Motherland’ and ‘The Commoner’ are not in publication now.  

The Rising Nepal was the need of the time then, the government wanted it as it had to send all advertisement in English to India for publication which would take many days. “There was dependence on Indian newspapers for English media and information. Although English reading audience was small then, it was the need of the time,” said Shyam Bahadur KC, former Editor-in-Chief of The Rising Nepal.

KC was working with the Motherland and he didn’t like the publication of the TRN which many considered as the competitor of the former. “I actually didn’t like it in the beginning since it was the competitor of my paper but it was a full-size newspaper in the country which drew the attention of many,” he said.

The former TRN journalists said that it had more leeway compared to its sister publication Gorkhapatra daily due to its small audience while the government also wanted to present it as a liberal media.

With the restoration of democracy in 1990 and subsequent opening of the economy created fertile ground for the growth of private sector media, including broadsheet dailies, television channels and FM radios.

While the private sector newspapers adopted the latest design and presentation to attract readers, TRN continued with its traditional look and design. However, since a decade ago, efforts were put to make the paper more attractive and readable.

As a result, the paper has more liberal design and photo presentation. Its content has been diversified with the publication of special pages, editions and pull-outs. It has been trying to address the audience from political and business elite to school kids.

It made a major departure with the addition of four colour pages to its publication early this year which had allowed more space to include more information of diverse areas. However, the COVID-19 pandemic created hurdles to the progress efforts.

But with the celebration of its 55^th anniversary, the first broadsheet is geared up to continue with the publication of 12-page and achieve the pre-COVID momentum.

“The paper must regain the achievements it made before the advent of the pandemic. With the diversity of content, it will surely cater to the large variety of audience,” said Jagadish Pokhrel, former Editor-in-Chief.

KC also emphasises on diversity of content. “While I was the editor, I allocated a whole page for sports but it was hard time to fill the space with domestic information as there were a few competitions and activities,” he said.

There are also preparations for the publication of TRN in seven provinces. The paper has begun in-depth reporting on social and economic issues. “The government should give more autonomy to Gorkhapatra Sansthan and its publication in line with the British Broadcasting Corporation (BBC),” said KC.

According to him, owners do have some interest behind running media outlet but state media should be allowed to make reasonable criticism of the government.

Published in The Rising Nepal daily on 16 December 2020.