Govt cares about the working class people: Dr. Khatiwada

Kathmandu, Mar 30

The government has said that it had applied all possible efforts to reduce risks of and fears from coronavirus.

Minister for Finance, and Communications and Information Technology Dr. Yuba Raj Khatiwada said in an interview with the RSS on Monday said that the Cabinet had made some special decision to control the Covid-19 and its impact on working class people specially the daily wage workers.

He reiterated that the government would put every efforts to execute the decisions made by the Cabinet.

"The government is concerned to the plight of the daily wage workers who are in problem after the announcement of the lockdown. Therefore, local bodies are collecting the data of such families and providing relief materials to them. It will help them during the crisis," said Dr. Khatiwada.

According to him, federal, state and local governments have shares in the fund created for the control and treatment of coronavirus and other social organisations would be mobilised for the support. Local bodies in coordination with the provincial governments will collect the data of the people who are facing challenges due to the lockdown and coronavirus.

Such families will get relief material enough for the lockdown period. "Local governments will mobilise relief as per the size of the family. It will be executed in coordination with the state government," said Minister Dr. Khatiwada. "The government will provide additional care to the disabled, sick and orphans."

He said that in terms of the formal sector, the private sector employers should give salary to their workers, and maintained that the enterprises, including the most affected tourism sector, must not shy away from paying the salary of the month of Chaitra to their monthly and daily wage workers.

Saying that the Sunday Cabinet meeting had sought the solution of the problems created by Covid-19 in the economy, he informed that the contributions that should be made by the employers and employees of the firms registered with the Social Security Fund in Chairtra will be deposited by the government.

Dr. Khatiwada said that government had adopted the policy to promote induction cooker in order to tackle with the short supply of LP gas. The government has waived the customs duty on induction with the aim of increasing the consumption of electricity and replace the import of cooking gas.

Since the industries and businesses are closed with the implementation of lockdown, there is sufficient electricity in the system. The government has also decided to offer 30 per cent to 50 per cent discount on electricity charges to the industries that run during the time of crisis.

Consumers using up to 150 units of electricity in Chiatra will get 25 per cent discount in the bills.

Likewise, the government has imposed restrictions in the import of goods like pepper, beetle nuts, peas, dates and liquor as the country has the stock of these goods enough for almost three years. Luxury vehicles have been also restricted for import.

Likewise, the Nepal Rastra Bank has announced various relief measures for the banks and financial institutions and businesses on Sunday. It has increased the size of the refinancing fund to Rs. 60 billion.

Dr. Khatiwada said that all sectors should behave responsibly during the time of crisis, any organisation should not escape from its duties and responsibilities.

Published in The Rising Nepal daily on 31 March 2020. 

No food production for the last five days

Kathmandu, Mar 28

As the production of the food halted with the week-long lockdown announcement by the government, the producers of rice oil and pulses have urged the government to facilitate in the production and supply of the essential foods.

"There is no production of food in the last five days. At the same time loaded and empty trucks are stuck at different locations," said Subodh Kumar Gupta, President of Association of Nepalese Rise, Oil and Pulses Industry (ANROPI) on Saturday.

Issuing a press statement, the association has formally requested all three levels of government to coordinate in facilitating the food industries in operating the industry and maintaining supply of the produced goods.

Since the trucks are stranded in different locations and drivers have gone to their homes fearing the novel coronavirus infection, a strategy is needed to increase the confidence of the workers and drivers and bring them back to the work in order to maintain the supply of the food.

"The confidence of the workers and drivers must be enhanced and their safety and well-being must be ensured in order to motivate them back to the work," said the association.

Gupta has urged the centre, provincial and local government to forge collaboration and cooperate with the industries in operating the food industries. "Operation of industries and supply of food is paramount during the time of crisis. Therefore, we request to the government to help us in the same," reads the statement.

ANROPI has also demanded to facilitate in the supply of the produced food items as Rs. 100,000 to 500,000 is needed to run the industry, and there should be an environment for sending money from the market to the producers.

It said that the health of the staff and workers in the industries would be taken care of with the provision of sanitiser, masks and other materials and social distancing.

"We are ready to produce and supply the food to the market but without government interventions, it is difficult to maintain the production and supply chain," said Gupta.

Entrepreneurs said that although the government had allowed the essential business and industries to operate, in absence of proper coordination between the government and private sector has created confusion and chaos in the business.

Imposing the lockdown, the government had restricted people to go out and industries, other than the essential goods like food and cooking gas, and pharmaceuticals, to operate production. These measures are put to check the spread of the Covid-19 pandemic.

Published in The Rising Nepal daily on 29 March 2020. 

NRB announced relief packages for banks and businesses

Kathmandu, Mar 29

Nepal Rastra Bank has extended the payment of monthly and tri-monthly instalments of loan payable by mid-April to till the end of the current fiscal year, mid-July 2020.

Announcing a relief package for the banking sector amidst the fears of coronavirus pandemic and its impact on the banks and financial institutions (BFIs) and business and industries, the central bank has barred the BFIs from imposing any penal charges and penal interests to the monthly or tri-monthly instalments, including credit cards, of the Nepali month of Chaitra, mid-April.

In the first of any relief programme to be announced by any government agency, it has also said that if any borrower pays the mid-April instalments, they should be provided with 10 per cent discount in interest amount. Likewise, all short-term loans' term can be extended up to 60 additional days.

If any borrower from the tourism and transport sectors, who have been paying the capital and interest regularly till the end of the first six month of the current fiscal year, demand short-term loan, the BFIs must mobilise the loan within 5-day of the application, and they should not charge more than 0.25 per cent of the loan amount.

Facility for health facility

The central bank has said that if any private sector hospitals and health facilities wanted to upgrade or expand their service and facility in order to support the treatment of coronavirus patients, loan extended to this sector would be counted as 'primary sector lending'.

Currently, agriculture, hydroelectricity and tourism are the primary sector.

The banking sector regulator has also allowed the BFIs to count the money they contributed to the coronavirus control and treatment funds created by the federal or local governments to count as the Corporate Social Responsibility (CSR).

Loan for any health materials recommended or listed by the government for the treatment of Covid-19, equipment, medicines and food items should be approved within 5 days of application, directed the NRB.

Similarly, priority would be given to the small and medium scale enterprises affected by Covid-19. Such loan facility would include the current capital loan as well.

Nepali workers who had obtained the government permission to go for foreign employment but forced to stay back due to coronavirus outbreak can apply for concessional loans to run any business in Nepal after the risk is over. Such loan will be mobilised within a week of application.

Published in The Rising Nepal daily on 30 March 2020. 

Nepal in communication with donors for help to fight COVID-19

Kathmandu, Mar 29

The government has established communication with all potential international donors, including the bilateral and multilateral agencies in an effort to arrange critical financial resources and logistics required to combat with the coronavirus pandemic.

"Access has been established with the concerned international bilateral and multilateral agencies. Talks are underway for the cash, commodity or technical support," said Shree Krishna Nepal, Chief of the International Economic Cooperation Coordination Division at the Ministry of Finance.

He said that there was a significant progress in the talks with the World Bank and the Asian Development Bank while efforts are being made to bring in support from the International Monetary Fund and Asian Infrastructure Investment Bank as well.

The government has sent official letters to China, India and Switzerland seeking support in the fight against the pandemic that is expanded to more than 200 countries across the world and claimed the lives of about 31,000 people.

The Ministry of Finance, Ministry of Foreign Affairs and Ministry of Health and Population are collaborating in establishing access to the sources and donors and in close coordination.

According to MoFA, the first lot of the support materials, including the personal protection equipment (PPE) and virus test kit from China arrived in Kathmandu Sunday morning.

"Our effort is to bring in the required materials from various developed countries but as most of them are under lockdown, there is a problem to get the things in fast track method," said Bharat Raj Paudyal, Spokesperson of the foreign ministry.

There are constraints in getting even the PPEs and masks and producers are facing various challenges and restrictions in transporting the goods. The pandemic has forced the countries to announce lockdown in order to stop virus from further spread.

"Transportation constraints have challenged the movement of the health materials that are in the pipeline," said Paudyal.

He said that the government was making preparations at multiple fronts and would arrange the logistics as well as financial resources for the fight against the COVID-19 pandemic.

Meanwhile, Minister for Foreign Affairs Pradeep Kumar Gyawali has said in a tweet that the health materials received or bought from China would be sent to the newly established coronavirus testing facilities in all seven provinces.

Published in The Rising Nepal daily on 30 March 2020. 

Medicines, kits to arrive From China today

Kathmandu, Mar 27

Ministry of Foreign Affairs (MoFA) has said that necessary medicines required for the control of coronavirus infection will arrive in Nepal on Saturday.

According to the ministry, the items were collected in Chengdu on Friday and sent to Nepal as the quantity met the demand made by the government.

Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that the government was planning to send an aircraft to bring the medicines.

The government had sent a list of necessary goods and medicines through the MoFA.

The Ministry of Health and Population is waiting for the materials that needed an immediate distribution.

Meanwhile, Our Sindhupalchok Correspondent reported that about 2,000 coronavirus test kits were expected to arrive at Tatopani border point by 10 am on Saturday.

According to Lal Bahadur Khatri, chief of Tatopani Dry Port Customs Office, as the government had decided to send a plane to carry medicine and medical items on Friday, dispatch of the consignment was delayed. He said that the items will reach Kathmandu by Saturday evening after completing the necessary customs procedure.

A thorough medical protocol would be followed while passing the medical goods at the customs office. The border point was closed for the last two months. It will resume its operation along with the entry of the test kits.

Published in The Rising Nepal daily on March 28, 2020. 

Businesses hope for government relief package

Kathmandu, Mar 26

The private sector is hoping for a relief package from the government to support the businesses and industries affected by the COVID-19 pandemic which has severely hit the businesses, primarily tourism, manufacturing and is likely to affect agriculture in the medium term.

Tourism was the first sector hit hard by the pandemic. The outbreak of the novel coronavirus epidemic in China in January had begun to affect tourism industry and created doubts about the Visit Nepal Year 2020. In the last three months, the coronavirus has reached about 200 countries across the globe and most of the human settlements are in lockdown with people shut inside their homes in order to check the spread of the virus.

Recently, the pandemic forced the manufacturing companies and travel and aviation industries to shut their services amidst the growing fear of the spread of the virus. With the detection of the second case of the COVID-19, the government announced nationwide lockdown, a couple of days after the country went to a semi-lockdown situation.

“Tourism was the first to feel the heat of the virus outbreak. They are out of business for more than a month while manufacturing and other business sectors stopped a week ago. They are expecting support from the government,” said Bhawani Rana, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

However, the leader of the largest business body in the country said that it was early to talk about the details the business sector needed.

“The FNCCI has adopted a strategy to support the government in maintaining the supply of food and essential goods. We have to serve the people and nation first,” she said. “But the business people are expecting relief programmes from the government. Especially tourism entrepreneurs and daily wage workers are the first ones that need support.”

Vice President of Confederation of Nepalese Industries (CNI) Krishna Prasad Adhikari said that CNI had already tendered its suggestions regarding the business relief programmes to the government.

“The support should be sector-wise with higher priority to the most affected areas like tourism. But more seriousness is needed for agriculture as the farmers are not getting the inputs and human resources for the plantation, there would be shortage of vegetables after a couple of months,” he said.

It means when the crisis is over after a couple of months as in China, there might be a shortage of vegetables and poultry items. That would create another round of fright.

Vice President of the Nepal Chamber of Commerce Rajendra Malla demanded for government response as manufacturing had gone to zero and wage earners are facing immediate challenges.

Former President of the FNCCI Pashupati Murarka said that it would be early to define the demands in a concrete way but the government must do something.

“We are aware of resource crunch on the part of the government, but there should be some support to the businesses,” he said.

The business people said that there should be short-term and long-term relief packages. Adhikari said that the government should bring refinancing facility and subsidy in bank interest instead of cash incentives.

Finance Secretary Shishir Kumar Dhungana said that the government had begun homework for the relief programme to the business and industry.

India has announced INR 1,700 billion economic stimulus plans with direct cash transfers and food security measures. It has business relief programmes and welfare schemes for the poor and workers.

Similarly, the United States has announced a massive $2000 billion stimulus package to support the economy that is suffering setbacks due to coronavirus outbreak.

Published in The Rising Nepal daily on 27 March 2020. 

Govt to talk with India for supply of essentials

Kathmandu, Mar 26

The government is making preparations to hold talks with India to ensure the smooth supply of daily essentials, medicines and raw materials.

Coronavirus outbreak in India and Nepal and measures to control the pandemic and preparedness activities have created uncomfortable situation for cross-border trade between Nepal and India.

 Ministry of Industry, Commerce and Supply has formally requested the Ministry of Foreign Affairs for correspondence with the Indian government and agencies responsible for the cross-border trade.  In response, the MoFA has started the process for the talks with the Indian authorities.

MoICS also wants to request India for the seamless movement of food, medicines and raw materials.

Two-thirds of Nepal’s international trade happens with India while most of the other goods come to Nepal via Indian transit.

Published in The Rising Nepal daily on 27 March 2020. 

Vishal Group pledges Rs 10 million to fight COVID-19

Kathmandu, Mar 26

Vishal Group has pledged a contribution of Rs 10 million to the government’s response to the COVID-19 pandemic and to aid the public health relief efforts.

Its CSR unit, VG Foundation, will make the announced contribution in various forms.

The foundation is now working with international suppliers to source N95 masks, sanitizers, personal protection equipment (PPE), infrared thermometers and other medical supplies – to send to various medical establishments in the country, said the company.

“We are incredibly proud of all the people who are committed to providing support to those dealing with this crisis and experiencing its impact,” said the company. “From medical professionals to general public, we hope this support will help provide some relief.”

Earlier, the foundation has handed over hand sanitizers and surgical masks to Bir Hospital, Prashuti Griha Hospital and Kanti Children’s Hospital.

“We recognise the role of the frontline health care providers as they apply their expertise on this fast-moving issue and care for the well-being of our communities. We hope that our support will help provide some relief to medical professionals and general public,” said the group.

It has also pledged further support as per the demand.

“In this critical situation, we stand with the nation to use our resources and our skill-sets to contribute towards people’s welfare, and will expand the possible contribution as needed.”

Published in The Rising Nepal daily on 27 March 2020. 

Gas bullets enter Nepal

Kathmandu, Mar 26

Nine gas bullets stuck at Rupeidiha in India across Nepal-India border in Nepalgunj entered Nepal on Thursday.

The bullets were returning from Gonda gas refilling plant in India on Wednesday afternoon, but the Indian border security SSB had stopped them at the border. When officials of Manakamana Gas and Bheri Gas companies in Banke district, the importers of the gas, tried to pass the vehicles from the Indian customs, SSB did not allow them to enter the country.

However, Chief District Officer of Banke Kumar Bahadur Khadka took initiative following a request from the Nepal Oil Corporation, and talked to the security personnel, thus creating an environment for the bullets to pass.

The chief of the NOC talked to the CDO following our request to assist in bringing the bullets into Nepal, said Madhu Bhandari, a staff of Manakamana Gas Company.

Gas industries in Banke said that the SSB had allowed the bullets to pass the border easily till Wednesday, but they started obstructing the movement from Thursday.

Chief of NOC’s provincial office in Nepalgunj Naba Binod Pokharel said that the bullets came to Nepal after the administration talked to the Indian authorities.

Since India has also imposed lockdown amidst the growing spread of coronavirus pandemic, it will be difficult to send bullets to India, said Pokharel.

The NOC has decided to fill the cylinders half – 7.5 kg gas – owing to the looming threat of the pandemic.

Gas industries in Nepal have said that they have LP gas enough to meet the demand for about three months.

Published in The Rising Nepal daily on 27 March 2020. 

MoFA instructs missions to update on citizens abroad

Kathmandu, Mar 25

Minister for Foreign Affairs Pradeep Kumar Gyawali has directed the Nepali embassies and missions abroad to regularly report the COVID-19 infections in their respective countries and take initiative for the health and safety of the Nepali citizens.

Speaking at a video conference with the chief of Nepali missions in Malaysia, Japan, South Korea, Israel and South Africa on Wednesday from Singha Durbar, he directed them to stay connected with the employers and government in their respective countries and take initiatives for the salary and social security of Nepali citizens. He said that it was the duty of the missions to care for the health, safety and employment of Nepali workers there.

Minister Gyawali also directed the missions to inform the Nepalis about the safety directives issued by the local governments in their respective countries and urged Nepali citizens and mission staff members to stay alert and adopt all possible safety measures against the possible infection of the coronavirus.

Minister of Labour, Employment and Social Security Rameshwor Raya Yadav, who was also present during the conference, asked the Nepali missions abroad to coordinate with the employers and local governments in order to combat the problems and challenges that would unfold in the near future.

"All the Nepalis in foreign land have high stake in the Nepali missions at this sensitive and difficult time, therefore, you must play your roles effectively," he said.

The ministers have informed the missions about the steps made by the government in order to prevent and control the coronavirus infection in Nepal.

They have discussed about the status of coronavirus outbreak in those countries, condition of Nepalis, possible impact of COVID-19 on the economy and employment.

Mission chiefs have informed the ministers about the steps they had taken for the safety of Nepali citizens, their status and regular and emergency services by the embassies to Nepali citizens.

Earlier on Tuesday, the ministers-duo had talked with the chief of missions of Gulf and African countries to know about the situation of Nepalis there and directed the missions to stay in regular contact with Nepali citizens.

The High-Level Committee on the Prevention and Control of Coronavirus had asked Nepali citizens to make arrangements of stay in the countries of their work.

Published in The Rising Nepal daily on 26 March 2020. 

Business Rescue Plan

Editorial

The humanitarian loss due to the novel coronavirus (Covid-19) has sent shivers to the citizens and governments across the globe. By Wednesday morning approximately 425,987 cases were detected and 18,957 people have died. The pandemic is spread to more than 168 countries. Equally threatening is the loss of employment and livelihood opportunities of billions of people especially the wage-labourers and micro, small and cottage enterprises. 

At the same time, medium and large industries and businesses are also having tough time as the production and service is shut and people have been forced to stay home. They have to pay the salary to the employees and interests of the bank loans while their business is not functioning or faring poorly. Industries other than the essential goods and foods are completely shut.

The coronavirus toll on business and industry has resulted in the business community demanding rescue and relief measures from the government, and some of the countries in Europe and the United States have announced rescue packaged. 

The recent one is the US announcement of $2 trillion virus rescue package to provide aid to businesses, workers and health care system hard hit by the coronavirus pandemic.

In our neighbouorhood, Indian Prime Minister Narendra Modi has announced to unveil special rescue package for the business. Nepali business community has been vocal about the same for the last couple of weeks. 

Economists and former finance and industry secretaries and business bodies like the Federation of Nepalese Chambers of Commerce and Industry and Confederation of Nepali Industries have urged the government to announce economic packages to support business.

Nepal is a small economy with just $34 billion Gross Domestic Product (GDP). According to the National Economic Census 2018, there are just about a billion enterprises – ranging from small grocery or tea stall to large manufacturing industries. 

Since every business is severely affected by the coronavirus pandemic, the government in Nepal does not have resources to address the demand of the most businesses but it should create a package to support the ones that are most affected and need a rescue plan in order to remain in business.

The Covid-19 has come as another blow to the business in the country in a row – the earthquake, the blockade and the pandemic. Some of the businesses that survived the earlier two crises might give up this time. 

Therefore, the Ministry of Finance and Ministry of Industry, Commerce and Supplies must be vigilant on the situation and begin a work on the plan to provide relief to the business and industry. Such relief can be in the form of cash grant, tax or bank interest waive off, cash incentives and other innovative measures suggested by the business bodies.

However, such packages in the past have largely unexecuted or were marred by bureaucratic hassles and lengthy procedures which sent the message to the beneficiaries that whether the government actually wanted to support them. 

The business reconstruction fund and concessional loan for house reconstruction in the aftermath of the 2015 earthquake are the two recent examples that were ineffective in terms of supporting the companies and private house owners. The government must learn from the weaknesses of the past and devise an effective plan that actually supports the needy during the crisis.

Published in The Rising Nepal daily on 25 March 2020. 

Govt fund created to fight COVID-19 swells

Kathmandu, Mar 24

Various organisations and individuals have pledged their support to the government fund created to collect money to prevent and combat COVID-19.

The main opposition party Nepali Congress has decided to contribute 15-day salary of its lawmakers at the Federal Parliament.

The Non-Resident Nepali Association (NRNA) and Federation of Contractors Association of Nepal have decided to contribute Rs. 10 million each to the fund. 

The government had established 'Coronavirus Infection Prevention, Control and Treatment Fund' with Rs. 500 million seed money and urged one and all on Friday to deposit contributions to its bank account 196000001101 in Rastriya Banijya Bank to assist in the fight against COVID-19.

Issuing a statement on Tuesday, NC Chief Whip Balkrishna Khan welcomed the government decision of 'lockdown' and announced the contribution.

Chair and vice-chair of the National Assembly and Speaker of the House of Representatives had announced to contribute a month's salary to the fund.

Likewise, President of Rastriya Janata Party Raj Kishor Yadav has pledged a month's salary to the fund.

National Cooperative Bank Limited has pledged Rs. 1.1 million to the fund and appealed its member cooperation ogranisations to support the government in the initiative.

Rajendra Kumar Poudel, Joint-Secretary at the Prime Minister's Office, said that many individuals, companies and organisations had pledged their contributions to the fund, but the details were unknown since the bank remained close on Tuesday.

"The details of the money and contributions to the fund will be made public from Wednesday," he said.

Meanwhile, Deurali Janta Pharmaceuticals has pledged 400,000 Hyquin 200 (Hydroxychloroquine Sulphate Tablet) worth Rs. 4.8 million free of cost to the government for the treatment of COVID-19 infected people. It said that various international research publications have said that the medicine helps in the speedy recovery of the COVID-19 infected patients.

Province Initiatives

State – 1 government  has established a Rs. 100 million 'Public Safety Fund' for the control and prevention of the coronavirus. It has also established a Corona Information Desk at the Chief Minister's Office.

Chief Minister, ministers and state ministers have pledged their one month salary to the fund.

Similarly, Sudurpaschim State government has also established Rs. 115 million corona fund. An emergency meeting of the State Cabinet has also decided to provide Rs. 30 million to the local units as conditional grant.

Restriction to other funds

Amidst the announcement of funds for coronavirus by various organisations, the federal government has issued a restriction on establishing such funds.

A meeting of the High-Level Committee on Coronavirus Prevention, Control Committee on Tuesday has issued the restrictions.

The government has established 'Coronavirus Infection Prevention, Control and Treatment Fund', therefore, other agencies or orgnisations should not create funds for the same purpose, reads the decision.

However, in terms of organisational fund, the committee has allowed them to collect money from the individuals affiliated to the organisation.

Published in The Rising Nepal daily on 25 March 2020. 

PM Oli calls on Prez Bhandari

Kathmandu, Mar 22

Prime Minister KP Sharma Oli called on President Bidya Devi Bhandari on Sunday.

PM Oli has met the President for the first time after his second-time kidney transplant.

According to Dr. Bhesh Raj Adhikari, Chief Personal Secretary to the President, the meeting lasted for one and a half hours and they discussed about the contemporary issues.

PM Oli informed President Bhandari about the government activities. including its efforts to combat COVID-19.

Published in The Rising Nepal daily on 23 March 2020. 

Hostel to remain close till 12 April

Kathmandu, Mar 22

All the private hostels will remain closed for at least three weeks from 22 March to 12 April in an effort to support government initiative to prevent the spread of COVID-19.

Issuing a statement, Nepal Hostel Association said that it had already appealed all the hostels to shut down.

“Since the government has barred more than 25 people to gather at a location, the association has considered the gravity of the situation and decided to close the hostels and service till the end of Chaitra, 12 April,” said Bhakti Pathak, chairman of the association.

There are more than 1,000 hostels across the country which are providing services to students, employees and other needy people for short and long term.

The association has urged the government to include the hostel business while announcing relief package for the business and industry sector.

Similarly, it has said that the government should ask the house owners to announce discount on the house rent for hostels.

Published in The Rising Nepal daily on 23 March 2020. 

NRB raising ceiling of digital payment

Kathmandu, Mar 22

Nepal Rastra Bank has increased the ceiling of digital payment.

The Payment System Department of the central bank has increased the amount of fund transfer via mobile and internet banking as well as from mobile wallet.

According to its statement issued on Sunday, amendments were made in the Integrated Direction on Payment System 2020, in practice from January 2 this year to allow the respective institutions to make higher payment through digital system.

The NRB has raised the per-day limit of mobile banking (including the use of QR code) to Rs. 100,000 from the current 50,000. Per-month limit of such payment has been raised to Rs. 1 million from Rs. 200,000.

Likewise, merchant payment ceiling in internet banking is not changed from Rs. 1 million per day and Rs. 3 million per month. Limit of account transfer via internet banking is also kept as it is – Rs. 1 million per day and Rs. 5 million per month.

“However, this provision would not restrict fund transfer from a bank account of an individual to another account in the same bank or financial institution,” read the directives.

Similarly, transaction limit of mobile wallet has also been raised significantly. Now an individual can make Rs. 100,000 payment in a day and Rs. 500,000 in a month. It was Rs. 25,000 per day and Rs. 50,000 per month till now.

Rs. 25,000 can be paid per transaction via mobile wallet.

Mobile wallet transactions include fund transfer from bank account to the wallet, wallet to bank account and one wallet to another wallet.

The ceiling of fund transfer from the agent or sub-agent to wallet is kept as it is – Rs. 25,000 a day and Rs. 100,000 a month.

The central bank has restricted higher than Rs. 25,000 for overnight cash reserve. No charges will be incurred while transferring money from wallet to wallet-holder’s bank account.

Published in The Rising Nepal daily on 23 March 2020. 

Budget spending at local levels goes largely unreported

Kathmandu, Mar 21

Budget expenditure made by the local bodies is not properly reported both at the local level and to the central government.

In the last Fiscal Year 2018/19, local bodies in the country had Rs. 388.7 billion at their disposal. They mobilised about 79 per cent of that budget – Rs. 243.6 billion went to recurrent expenditure while Rs. 63.77 billion was capital spending.

But their budget mobilisation is not properly reported to the state and federal governments and in SUTRA (Sub-national Treasury Regulatory Application) – planning, budgeting and accounting software for all levels of the government.

The Financial Comptroller General Office (FCGO) said that it was unable to get the programme-wise expenditure from the fiscal transfers made by the federal government to the local bodies. It also couldn’t get the expenditure as per the proper classification while many local bodies reported their expenditure under the title that did not have any budget.

The FCGO is a government agency for treasury operation that oversees government expenditure against budget, tracks revenue collection and other receipts. However, in terms of local bodies, it was largely unable to get the actual status of the budgeting and expenditure. It prepared the Financial Report of local bodies of last year on the basis of available data.

Local bodies lack the skills and knowledge of planning, budgeting and accounting which has impacted budget mobilisation and its reporting, said Ramesh Prasad Shiwakoti, Joint Financial Comptroller General and Coordinator of the Public Expenditure and Financial Accountability (PEFA) Secretariat.

Meanwhile, about 11 local bodies have not yet passed the budget from the respective village or municipal council but they are operating all economic activities.

Some of the units have issued cheques with back date after the end of the fiscal year which is creating problems in fund management.

Manpower and technology

Most of the local governments do not have human resource responsible to maintain accounts. “The absence of technical staff at the local bodies has created challenges in operating the SUTRA and financial reporting,” said Niraj KC, information officer at the FCGO.

The FCGO had trained 2,733 government staff on SUTRA in the first phase and conducted the same training for 2,200 newly recruited officials. To make the accounting and reporting more effective, it had planned to train officials from all 761 governments in 23 clusters in April and May this year, but it was halted indefinitely due to COVID-19 threats.

Current budgeting system has also created challenges in the part of the local bodies as the federal and state governments continue sending grants to them even after they pass their budget.

Shiwakoti said that the provision of grants after finalising the budget needs revision in the reporting as well.

The SUTRA which is in operation in about 700 local bodies has technical and operational problems as it couldn’t address the entire need of financial reporting.

“It was our weakness that we implemented SUTRA in all 753 local bodies without piloting it. Therefore, we are troubleshooting the system. It will be completed by the end of this fiscal year,” said Shiwakoti.

Likewise, the FCGO is decentralising its support system to the states. Currently, the local bodies are getting the technical assistance from the Treasury Controller Office while there is a help desk at the central level which helps through direct telephone communication.

The FCGO said that the SUTRA would be effectively implemented in about 700 local bodies in the current fiscal year and will be expanded to the remaining units in the next fiscal.

Shiwakoti said that the progress so far was satisfactory as the local bodies were doing well even during the period of financial transition.

The provision

According to the constitution, accounting model of financial transactions of all 761 governments in the country should be as prescribed by the Auditor General. They should maintain their financial accounts as per the Government Finance Statistics Manual 2014 while the FCGO had developed integrated economic classification for reporting. 

The Local Government Operation Act also has similar provision. The local bodies should regularly send the four-monthly report of income in and expenditure from the reserve fund to the finance ministries at the federal and state level, Ministry of Federal Affairs and General Administration and National Natural Resources and Fiscal Commission.

Likewise, their income from the federal grants, revenue distribution, internal income and loan should be reported to the State Financial Controller Office and Treasury Controller’s Office.

Published in The Rising Nepal daily on 22 March 2020. 

Melmachi by end of this year

Kathmandu, Mar 20

There are now symptoms that the water from the Melamchi River in Sindhupalchok will arrive in Kathmandu by the end of this year.

Progress in the tunnel finishing and head works construction – remaining two major works – at the project has shown hopes that the denizens may get the water by the end of 2019, said Rajendra Prasad Pant, Senior Divisional Engineer and Spokesperson of the Melamchi Water Supply Development Board.

The board, in September last year, had awarded the contract for the remaining works to Sinohydro, a Chinese Contractor, following the mid-time sudden exit of the Italian contractor CMC.

“The speed of work is satisfactory and the contractor is working with additional efforts to get bonus for the early completion of the work,” said Pant. The contractor will receive 10 per cent bonus if it completes the work 67 days before the deadline, January 2021.

As per the contract, Sinohydro should complete the tunnel in one year and headwork in 15 months.

Headwork construction, tunnel finishing, fitting the ventilation shaft, hydro-mechanical gates and monitoring equipment are being executed at the project.

The tunnel finishing work and pipeline connecting the tunnel and water treatment centres in Sundarijal are at the final stage.

Of the 27.6 km long tunnel, 25.9 will be used to carry water while the remaining is the audit tunnel. The CMC had finished the initial support work for about 24 km of the tunnel.

According to Pant, the contractor is planning to test the tunnel in July, about five months before the final deadline for the job completion.

Since the contractor was working with the aim to obtain the government announced bonus for early completion, it did not send the Chinese workers during the New Year which has saved the project from human resource crisis like the Kathmandu Ring Road and East-West Highway’s Narayangadh-Butwal section Expansion project. Work at these two projects has been affected as the Chinese workers went home to celebrate the New Year.

About 250 locals and 50 Chinese are working at the site in Sindhupalchok.

“If there were no serious impact of coronavirus, the work will move on smoothly. The contractor has also assured this to us,” said Pant.

The project aims to bring about 170 million litres water per day to the valley which will be supplied to the consumers inside the Ring Road and in Kirtipur and Katunje, Bhaktapur.

The water will reach  every house in the Valley after the completion of the second phase when additional 340 million litres water from Yangri and Larke rivers is brought here.

About 9 distribution systems are being ready to supply the water to the homes.

The national pride project has achieved about 90 per cent progress 18 years after its implementation. The project is delayed by a decade.

Settlement of the sub-contractors

Meanwhile, sub-contractors and vendors that worked for the CMC had submitted a letter to the board warning that the delay in settling their issues might force them to launch fresh protests.

They also warned to disturb the work at the site.

The CMC fled the country without paying about Rs. 1.5 billion to the sub-contractors and suppliers of the construction materials.

They have warned that if the issue is not settled within 15 days, they will go for protests, said Pant.

The government had tried to seek all-party consensus to make payment to the parties but couldn’t do so. Later, a technical committee led by a Joint Secretary of the Ministry of Water Supply had studied the matter and submitted a report with recommendation.

But the report was not implemented while the sub-contractors and vendors had been waiting to hear from the government.

Published in The Rising Nepal daily on 21 March 2020. 

BFIs waive off digital banking charges

Kathmandu, Mar 20

The banks and financial institutions (BFIs) have waived off all charges of electronic and digital banking amidst the looming Covid-19 threat.

They have removed the charges of internet and mobile banking, connect IPS service of the Nepal Clearing House and inter-bank ATM use.

Now customers can use ATM machine of any bank to withdraw the money and need not to reach to the ATM of their concerned bank.

This facility would continue till another notice.

Issuing a joint statement on Friday, Nepal Bankers Association (NBA), Development Bankers Association Nepal (DBAN) and Nepal Financial Institutions Association (NFIA) requested the customers not to reach to the branch of BFIs without urgent work.

They also urged the customers to contact the banks and branches through phone if they forgot their password of internet/mobile banking instead of reaching the banks.

The organisations said that the new requests were made following the government decision of restricting the gathering of more than 25 people at a place and World Health Organisation declaring Nepal as a risk country.

Published in The Rising Nepal daily on 21 March 2020. 

NCHL waives transactions fees

Kathmandu, Mar 20

Nepal Clearing House Limited (NCHL) has waived transactions fees in connectIPS e-Payment system for all the services available on the real-time retail payment platform for a month till mid-April.

It said that the announcement was made with an objective of helping to reduce customer flow at the bank branches in the present context.

All services within connectIPS will be free for the sending customers of the member banks and financial institutions, including mobile/internet banking channels of the BFIs and other technical/indirect member institutions.

“Amidst the current situation, it is prescribed to take precautionary measures by avoiding crowds and restricted physical movements,” said the company.

However, the financial transactions being one of the basic services, this initiative of NCHL is expected to help the general public to some extent by using digital and online channels for their payment service needs, it further said.

connectIPS e-payment system allows to link multiple bank accounts for fund transfer and service payments up to Rs. 1 million per transactionin web and Rs.100,000 per transaction in mobile App.

Published in The Rising Nepal daily on 21 March 2020. 

SEBON asks brokers to shut down screen exhibition room

Kathmandu, Mar 19

The Securities Board of Nepal (SEBON) had asked the stock market brokers to shut down their Screen Exhibition Room as the precaution for the novel coronavirus (COVID-19).

The share brokers’ offices feature with a hall with a large display screen where investors sit and watch the shares transactions before giving buy and sell orders of the securities.

“All the stock market actors should ensure that there were not more than five people in their office and manage it in that way,” Deputy Executive Director of the board Dr. Nabaraj Adhikari said.

Likewise, the brokers have been asked to make provision of sanitizer and mask as well as temperature measurement and health screening at their offices.

The board has also directed them to display informative materials about safety from COVID-19 at their entrance, and follow the decisions of the High-Level Committee on Prevention and Control of Coronavirus.

The SEBON had issued the fresh directive in line with the government decision, on Wednesday, to restrict people to gather in more than 25 in number, shut the schools, colleges, government, community and private sector training institutions, and conferences and large-scale gatherings.

It had also consulted with the high official of the Nepal Stock Exchange, representatives of the investors associations, stock brokers and board officials before issuing the directives.

Published in The Rising Nepal daily on 20 March 2020. 

NFTA pledes support in maintaining supply chain during Covid-19 crisis

Kathmandu, Mar 19

Nepal Foreign Trade Association (NFTA) has pledged its support to the government in the efforts to maintain the supply chain and check black marketing and artificial shortage of goods during the difficult times created by the Covid-19.

A delegation of the NFTA led by its President Sunil Kumar Bansal met Director General of the Department of Commerce, Supply and Consumers Rights Protection Netra Prasad Subedi and assured its support during the hard times.

It has asked its members to remain aware and practice ethical business during the crisis. It has also directed them to maintain the supply chain intact so that people get the goods without any hassles.

Bansal urged the department not to limit the market monitoring during the festivals and make it a regular activity of the agency.

The delegation expressed concerns that the quota for pam oil export to India had gone to just a handful of traders, and acts related to black marketing and agency were outdated and needed revision.

Subedi said that the department would try to address the concerns of the traders and asked them to submit the recommendation.

The delegation included Vice-President Binod Sethia, General Secretary Madan Mittal, Secretary Anil Kumar Agrawal, Treasurer Kumar Karki and members Gaurav Sarada, Akash Golchha, Ramchandra Khetan, Bishnu Kumar Joshi, Prabhat Safar and Ramesh Kumar Thapa.

Published in The Rising Nepal daily on 20 March 2020. 

Do not doubt govt capacity to maintain supply of goods: Minister Bhatta

Kathmandu, Mar 18

Nepali consumers are living with the blockade psychology which has forced them to store the essential goods amidst the threat of novel coronavirus (COVID-19) outbreak, said Minister for Industry, Commerce and Supplies Lekh Raj Bhatta.

"Driven by the fear of the shortage of the food items and cooking gas, people have started storing more goods," he said while talking to The Rising Nepal Wednesday.

"I have met people who have bought salt, rice and gas that would last for more than two years. This is madness. The consumers should also be aware about the situation and know that the supply of goods has not been stopped," he said.

People still doubt the capacity of the government in maintaining the supply of essential goods.

The minister is aware of this fact. He said, "We have set toll free telephone numbers and hotlines to hear the compliant of people. Citizens should also be responsible," he said.

He is for the close coordination between the government and consumers where people play the role of the market monitors to keep the market clean.

When consumers become ready to pay higher prices to get the things they want, it would only support the black marketers and criminals.

The minister who actively participated in the market monitoring in the Kathmandu Valley and Pokhara in the last couple of weeks had seen people buying a sack full of salt (50 kg) for a family of five.

According to him, petroleum oil supply situation is normal; however, clear stock of LP gas has created panic for a while. The stock was cleared as people started collecting as much cylinders as possible.

There is no constraints in supply, it is the consumers’ tendency to collect multiple cylinders and black marketing and hoarding by some industries and dealers that has sent negative messages to the people, said Minister Bhatta.

However, he stressed on more rigorous market monitoring to ensure the smooth supply of the goods to the consumers.

The Ministry of Industry, Commerce and Supplies has asked  the Ministry of General Administration for additional human resources for the Department of Commerce, Supply and Consumer Protection which is the focal agency for the regulation and monitoring of the market in the country.

Likewise, it has asked the district administration to be more active in monitoring the market and report if there is short supply of any goods, and discussed the issue with the business bodies like the Federation of Nepalese Chambers of Commerce and Industry, Nepal Chamber of Commerce, Association of Pharmaceuticals Producers of Nepal, Gas Industry Association, Gas Dealers Association and other responsible agencies.

"We have appealed to the industries and dealers as well as the consumers not to exhibit panic and store the goods. Black marketers and hoarders were fined as much as Rs. 300,000. I have asked the gas industries myself to facilitate the supply chain and not to disturb the market," said Bhatta.

According to him, the pharmaceuticals industries and Department of Drug Administration have assured that there was medicine stock for at least six months.

He also said that the government was taking the CVID-19 threat as an opportunity to expand the pharmaceutical industry. "The government is ready to facilitate the pharmaceuticals to make the country self-reliant in 80 per cent of medicines," he said. "I have talked with the Indian ambassador about releasing the medicines from India. India is positive about sending medicines both stuck at the border and restricted by the government."

If there is a border seal for health reasons, it wouldn't be like the blockade and both the countries will facilitate each other as much as possible and the essential medicines as well as other goods will be supplied in a coordinated way, said Minister Bhatta.

Talking about the impact of the COVID-19 on the industrial sector, he said that some of the government and private sector projects such as Dhaubadi Iron Industry and petroleum drilling in Dailekh had already been affected.

Industrial villages in the local bodies

Minister Bhatta said that the government was planning to establish industrial villages in 37 local bodies within this fiscal year. The government had the target of 70 such villages this year but the Memorandum of Understanding was signed with only 37 units.

There is a plan to establish industrial villages in all local bodies within next five years.

Published in The Rising Nepal daily on 19 March 2020. 

Create settlements in border areas, says Minister Aryal

Kathmandu, Mar 17

Minister for Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal has pointed towards the need to create settlements at the border areas to save Nepali land across the Nepal-India border.

“We have found from a study that some of the land which was historically ours is now in India,” she said while talking to a delegation from Kanchanpur district that came to the capital to submit an appeal about investigating the strip map of Kalilai and Kanchanpur.

The delegation, including Minister for Water Supply Bina Magar, chair of Women and Social Committee at the Parliament, lawmakers Dipak Prakash Bhatta, Nara Bahadur Dhami and Bina Budhathoki, local representatives and local people, met Minister Aryal and submitted the appeal.

The delegation said that a strip map prepared by a joint survey team of Nepal and India had marked the border in a way that hundreds of hectare of Nepali land had gone to India. It demanded that a team of federal parliamentarians should go to the location to look into the issue.

Accepting the appeal, Minister Aryal suggested creating settlements along the border.

“Develop a plan to create settlement at the border. Coordinate among the local bodies and develop villages to occupy our land,” she said.

She also suggested building settlements of the landless people in those areas.

According to her, Nepali land is being encroached since there is no one to protect it. At the same time, stakeholders should continuously create awareness about the protection of the land of the country.

She assured that the government would look into the issue, study the documents and repeat the mapping process for another time.

Director General at the Department of Survey Prakash Joshi said that the department was checking the border pillars in Kanchanpur district, but the work was halted due to dispute at some locations.

The delegation demanded cancellation of  the strip-map prepared without the participation of people and people’s representatives, review the situation in the field, and find out the culprits and punish them.

Likewise, it also asked to reinstate pillars no. 200 and 195 at their previous original locations, find out the lost pillars, get back the land that belonged to the Nepali citizens and establish security post for the border security at a distance of every 2 kilometres.

Published in The Rising Nepal daily on 18 March 2020.