GIBL offers discounts and cashback on its anniversary

Kathmandu, Dec. 30

Global IME Bank Limited has offered discounts and cashback to its customers in transactions made by using digital banking or card services.

It said that mobile banking services as well as debit and credit cards will be provided for free for a month from Thursday, December 30 on the occasion of its anniversary.

"Likewise, additional 15 per cent discounts or up to Rs. 300 cashback will be provided to the customers on their first transaction by using QR code and POS machines or ECOM," the bank said in a statement on Thursday.

However, the cashback plan will begin from  January 1, 2022 and will be active for a short period.

GIBL has a network of 287 branches, 252 ATMs, 263 branchless banking, 48 extension and revenue collection counters in 76 districts and three foreign offices. 

Published in The Rising Nepal daily on 31 December 2021. 

Earthquake Safety Day event to be held in Patan

Kathmandu, Dec. 29

This year's National Earthquake Safety Day programme's main ceremony will be organised at the Patan Durbar Square.

A meeting of the Main Organising Committee of the ESD, 2021 held at the Ministry of Home Affairs on Wednesday decided to organise the programme in the historical city in Lalitpur district.

The meeting was chaired by Minister for Home Affairs, Bal Krishna Khand. The meeting decided to request Prime Minister Sher Bahadur Deuba to be the chief guest of the programme.

Minister Khand said that the day should be organised in a way that it would transmit awareness messages to people. "It should be organised to inform especially the youth and students," he said.

An organisation sub-committee will be formed under the chairmanship of the Mayor of Lalitpur Metropolitan City while a publicity committee will be formed under the leadership of the Director General of the Department of Urban Development and Building Construction.

According to the ministry, posters bearing the slogan of the 24^th Earthquake Safety Day will be sent to all government, community and private schools and arrangements will be made to mark the day with the participation of teachers and students. 

Published in The Rising Nepal daily on 30 December 2021. 

CCN announces awards to honour corporate, social leaders

Kathmandu, Dec. 29

Corporate Club Nepal Pvt. Ltd is organising 'Awards for Distinguished Service (ADS)' to felicitate people extending inspirational services to the society and 'Awards for Corporate Excellence (ACE)' to promote good practice in corporate sector.

"These awards are designed to show honour and felicitate the corporate leaders contributing to the business growth and people offering their service selflessly," said Mohan Ojha, Chairperson of the Steering Committee ACE-ADS 2021.

Speaking at a press meet organised to announce the awards, he said the objective of the awards was to identify the policies, programmes and performance of the corporate sector and find out social and business responsibility and contribution.

"We have been planning for this award since a year. A jury was formed five months ago to select the eligible candidates," he said. An event will be organised in the Capital on 7 January 2022 to confer the awards.

According to the organisers, 11 awards will be delivered in the institutional excellence category, two in individual excellence category, two in institutional distinguished category, one in individual distinguished category and three in institutional builder.

Speaking on the occasion, Chief Executive Officer of Nabil Bank, Anil Keshary Shah, said that such programmes give the much-needed positive vibes to the business and society and inspire many for good deeds. Nabil Bank is one of the supporters of the awards.

Likewise, another supporter of the event, Shivam Cement Chairman, Surendra Kumar Goel, said that his company would continue to support such initiatives. 

Published in The Rising Nepal daily on 30 December 2021. 

Unified efforts needed for post-COVID revival: Golchha

Kathmandu, Dec. 28

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha, said that unified efforts were needed for the post-COVID revival of business and industry.

Welcoming the newly elected office bearers of the members of commodity associations at the FNCCI secretariat on Tuesday, he expressed confidence that the business would be revived and the private sector would contribute to the economic transformation of the country.

The business body has already formulated a policy document called 'National Economic Transformation 2030'.

"The time has come for the entire network of the federation to be mobilised for the revival of industry and business. Newly elected office bearers of the member commodity federations should be active to achieve this goal," said Golchha.

The FNCCI has honoured the members of Airlines Operators Association of Nepal (AOAN), Nepal Corrugated Box Manufacturers Association (NCBMA), Nepal Courier Services Association (NCSA), Footwear Manufacturers Association of Nepal (FMAN), NADA Automobiles Association, Nepal Agricultural Machinery Entrepreneurs Association (NAMEA), and Nepal Freight Forwarders Association (NFFA).

Speaking on the occasion, Sukrit Raj Parajuli, president of NCBMA, complained that although the country is self-reliant in packing boxes, producers are facing challenges due to imported box.

He recommended to stop the export of scrap papers – raw materials for corrugated box industry.

Chairman of NCSA, Devendra Khadka, demanded separate courier terminals at international airports and bus parks. He suggested that initiatives should be taken to solve the problem created by the traffic for courier van, and remove Value Added Tax on courier.

Naniraj Ghimire, President of FMAN, suggested establishing training centres to enhance the skills of the workers and create skilled manpower for the industries to address the shortage of skilled human resources.

He complained that there was a problem in exporting Nepali shoes due to high customs duty. He said that the government has made it mandatory to use indigenous products even though it is 15 percent expensive but the policy has not been implemented in practice.

Likewise, according to Dhruba Bahadur Thapa, President of NADA, policy of maintaining 50 per cent margin in the letter of credit (LC) has caused problems.

He suggested removing or amending impractical policies regarding customs reference price, black marketing, and annual fees and taxes.

Khoj Raj Katuwal, President of the NAMEA, suggested that the government should have a policy to promote Nepal-made products. Mulching plastics, pipes for drip irrigation and greenhouse structures made of iron and pipes are being produced and marketed in Nepal. 

Published in The Rising Nepal daily on 29 December 2021. 

CIM operates 'Business Clinic' to diagnose challenges, offer solutions

Kathmandu, Dec. 28

Chamber of Industries Morang (CIM) has launched 'Business Clinic' to diagnose the challenges in business and industries and offer solutions to them.

To support the initiative Ministry of Industry, Commerce and Supplies (MoICS) of the federal government has set a 'focal point' at the ministry.

A delegation of the chamber had met secretary of the MoICS, Arjun Prasad Pokharel' and other officials and presented 104 problems of its member industrial institutions. In response, the Ministry had agreed to dedicate a focal point to hear the grievances of the business community and help in resolving them, CIM said in a statement on Tuesday.

Both the parties will hold a meeting every three-month to review the project and facilitate the industries, said President of CIM Suyesh Pyakurel.

Currently, CIM is conducting trips to the businesses and industries to collect their problems. Such problems will be classified into operational, policy, industrial-special and common challenges, and subjects like energy, tax, revenue, labour, customs, import-export, banks and financial sector, and local government.

According to Pyakurel, the provision of the focal point will help industrialists and businessmen to resolve their problems from a single window.

"We have launched the Business Clinic as a model programme to conduct advocacy to resolve the problems of our member industries and support them in capacity enhancement.

 The clinic has internal and external sectors. Internal sector includes the health check up with the testing of internal capacity of the respective industry and business and identify problems. Similarly, external sector includes conducting industry visits for the collection and identification of problems, their classification, policy analysis and working with the focal point at the ministry to solve them.

Meanwhile, CIM-associated business community has said that the liquidity crisis has pushed the businesses into a new crisis.

"Banks are shying away from opening the Letter of Credit (LC) and not mobilizing loans while they have increased the interest rates and following up for the repayment of the capital and interest as per new rates," said CIM President Prakash Mundara in an interaction with the Nepalese Association of Financial Journalists (NAFIJ) in Biratnagar a couple of days ago.

According to him, banks are blackmailing the industries and businesses showing the punishment from the Nepal Rastra Bank which has disturbed the businesses in Province 1.

Mundada also said that the policy to maintain 100 per cent cash margin for the import of some goods had damaged the country's image in the international market.

"If the liquidity crisis was looming, why did the government open the import of beetle nuts, cloves and pepper? A situation is being developed where businessmen with large amount of money can only do the business," he said. 

Published in The Rising Nepal daily on 29 December 2021. 

Provincial ministry likely to have 'Capital Market Focal Person'

Biratnagar, Dec. 26

The Ministry of Economic Affairs and Planning of Province 1 and Securities Board of Nepal (SEBON) have expressed their readiness to appoint a 'capital market focal person' at the provincial ministry.

Secretary of the Ministry, Suman Dahal, at province-level 'Capital Market Awareness Programme' proposed the agenda and said that there should be a close coordination between the SEBON and provincial government in expanding and strengthening capital market and share market in the province.

In response, Executive Director of SEBON, Niraj Giri, maintained that the presence of the capital market regulator could be initiated with the focal person.

"The SEBON was planning to create provincial offices across the country but shied away because there is not enough business to handle for the provincial office. While we were waiting for some time, the proposal made by the provincial Economic Affairs Ministry is pragmatic one," he said.

According to him, stock brokers' companies would be brought to the provinces in coordination with the federal and provincial governments.

The Capital Market Awareness Programme was jointly organised by the Nepalese Association of Financial Journalists (NAFIJ) and Merchant Bankers Association of Nepal (MBAN) in Biratnagar the other day.

Share market investors and representatives of the private sector association in the province have demanded for the presence of SEBON here.

CM pledges support to capital market

Addressing the programme, Chief Minister of the province, Rajendra Kumar Rai, said that since the capital market supports in collecting money scattered in the society and supplies funds to business and economic development, the government is not against it.

"However, we should not forget that capital market has not yet gained people's confidence. There is a need of extensive awareness and education programmes," he said.

CM Rai pledged his support in the development and expansion of capital market in Province 1. "We want to see the development of capital market here. If there is a need of a new law, we will create it, and coordinate with the federal government as well," he said.

President of Confederation of Nepalese Industries, Province 1, Bhim Ghimire, said that a large number of people have not been able to reap the benefits of share market due to the lack of awareness and education. According to him, all stakeholders including investors and government bodies in Mofusil are inactive in this regard.

President of Nepal Chamber of Commerce, Province 1, Suresh Man Shrestha, demanded for a clear and concise policy for the development of capital market out of the Kathmandu Valley. He pointed to the need of effective cooperation among the regulators and governments at all levels.

Likewise, Advisor of the Federation of Nepalese Chambers of Commerce and Industry, Province 1, Avinash Bohra, said that there is no absence of capital market in the province but it lacks the required infrastructure for the same.

President of the MBAN, Mekh Bahadur Thapa, said that other investment instruments should be introduced in the share market and they should be expanded to the provinces. 

Published in The Rising Nepal daily on 27 December 2021. 

CAN to organise Infotech 2021 physically and virtually

Kathmandu, Dec. 26

The 27^th edition of CAN Infotech 2021 will be organised in hybrid form – physically at the Bhrikutimandap Exhibition Hall as well as online, said the CAN Federation, organiser of the event.

The largest show of information and communication technology in the country is slated for February 1 to 6, 2022. It was halted last year due to coronavirus pandemic and subsequent lockdown. The programme was rescheduled for May 2020 but the second wave of COVID-19 disturbed the exhibition.

"Virtual organisation of CAN Infotech is a new experience for us, and we hope that the people from across the country and around the world can visit the exhibition virtually," said Nawaraj Kunwar, President of CAN Federation.

The new edition of CAN Infotech is sponsored by IME Pay and Smart Choice Technologies is joint sponsor. Worldlink Communications, Sunway Business School, Dishome Fibernet, Nepal Telecom, Namaste Pay, S. Power and Digicom are other sponsors.

The show has been organised regularly since 1995. "The event will help all ICT entrepreneurs and stakeholders affected by the COVID-19 pandemic. We will try to bring in new innovations and developments in the infotech sector," said CAN Federation.

Meanwhile, ahead of the event, the CAN Federation organised a B2B ICT Business Summit where ICT entrepreneurs from across the country were gathered in Kathmandu to discuss the business potential in the sector. They have also expressed concerns about the CAN Infotech.

The exhibition will feature different sections like branding, ICT, accessories, game parlour, product launching, robotics, e-waste management, wi-fi, learning centre and employment centre in the info-tech fair.

It will also have products such as operating system software, networking and cloud solution, mobile phone and solution, electrical and electronics, security solution, solar power system, invertor, UPS, laptop and desktop computer, printer, power system, accessories, antivirus software, banking solution and hard disk.

Published in The Rising Nepal daily on 27 December 2021. 

Investors, experts stress drastic measures to salvage economy

Biratnagar, Dec. 25

While the government and central bank are adopting traditional measures to improve economic indicators amidst depleting liquidity in the system and low capital budget expenditure, there is growing gloom among the entrepreneurs across the country.

Businessesmen and economists are wondering where the money has evaporated. Recent move of the Nepal Rastra Bank (NRB) to tighten the imports of luxury goods including silver and expensive vehicles has directly hit the confidence of business community. The measure to manage cash margin while opening a Letter of Credit (LC) to import luxury goods was announced to ease the liquidity situation in the country, according to the NRB.

Amending its Unified Directives, the central bank had asked to maintain 100 per cent cash margins in the imports of luxury items including beverages, spirits, tobacco, sugar, perfumes, footwear, shampoo, artificial flowers, stone, cement, silver, cars and motorcycles.

"The NRB had to find some ways to curtail the growing imports of unnecessary goods. The tightening on some selected goods has come to lessen the pressure on the foreign exchange reserves," Governor of the central bank, Maha Prasad Adhikari had said in an interaction with journalists a few days ago.

He maintained that the central bank would make interventions in the financial system if there were any challenges. Stating that the new provision would discourage the imports of luxury and unnecessary goods, he said that it was a short-term measure and was not expected to bar importers from brining in luxury goods and raise the price of such goods.

 

Indicators are not healthy

According to the central bank's Macroeconomic and Financial Situation report of the first four months (up to mid-November) of the current Fiscal Year 2021/22, the country has US$10.47 billion foreign exchange reserve which could manage the imports for just seven months. Remittances decreased by 7.5 per cent while tourism-based income has tumbled since the advent of COVID-19 pandemic.

Likewise, imports have increased by over 60 per cent creating a serious pressure on the foreign exchange reserves. Meanwhile, the federal government spending remained lower than revenue collection while capital spending remained pathetic.

According to the daily budgetary reports of the Financial and Comptroller General Office, the government collected 56.56 per cent of the annual revenue target of Rs. 1180 billion by Friday while total expenditure remained scanty at 25.47 per cent of Rs. 1632.8 billion.

Capital expenditure in more than five months of this year is just Rs. 33 billion – 7.54 per cent. Although the NRB and Ministry of Finance (MoF) attribute the current liquidity crisis to the growing imports, economists say that the problem is also the result of low government expenditure, decreasing remittance inflow, increased economic activities and peoples' tendency to keep money at home during the time of crisis.

 

Revival needs funding

The post-COVID economic revival has created a massive demand for business and trade financing. While consumer demand is ever growing, many people who lost their jobs in the pandemic started their own micro, cottage or small business, and medium and large industries are expanding their capacity banking on the growing demand and more reliable  energy supply.

The banks and financial institutions (BFIs) have already mobilised 50 per cent of the annual loan growth target – 19 per cent – for the private sector announced by the Monetary Policy for FY 2021/22 in five months. According to the NRB report, on year-on-year basis, deposits increased by 17.2 per cent and claims on the private sector 31.2 per cent in the first four months of this year.

 

National crisis

After the recent NRB directives, entrepreneurs have said that it’s an imminent crisis. "Where has the money gone? Who is accountable to it?" President of Morang Trade Association, Prakash Mundara questioned. "This is a sort of financial lockdown. Entrepreneurs are not getting money needed for their business. Unhealthy competition in the banking sector should be kept in check," he added.

While money is not being invested in productive sectors, some large industries have imported raw materials for a year in three months, according to Mundara.  He said inefficient banks' unhealthy competition was the major cause behind the current problem.

Entrepreneurs in Morang-Sunsari Industrial Corridor said that the tightening of imports has painted a negative image of the country. "Government is only concerned with revenue collection while the plight of entrepreneurs is largely unattended," said Pawan Sharda, entrepreneur and former lawmaker.

Likewise, Suyesh Pyakurel, President of Morang Industries Association, said that only large businesses would be benefitted by import tightening. "Such measures will affect the inflow of Foreign Direct Investment (FDI) as they discourage domestic investment in the first place. Growth of productive lending should not be affected," he said.

 

High severity this time

Economist Dr. Dilli Raj Khanal said that this time the problem seems more severe as   there are complications in budget mobilisation and monetary policy implementation.

"The nature of the crisis is inter-related – expansion of lending should have created more jobs and supported economic growth, but money is channelized to trade sector and imports," he said.

The government has failed to mobilise capital budget even up to the level of COVID-19 period. Money is accumulated in the state coffers while private sector investors are not getting resources for investment.

"Therefore, a comprehensive strategy is required.  Shrinking remittance and liquidity crisis indicate growing presence of parallel economy," said Dr. Khanal.

According to him, the government must increase budget spending. There should be a special unit at the Ministry of Finance to mobilise, track, monitor and evaluate budget expenditure. "Nobody is held responsible if there is failure in budget mobilisation. Someone should be made accountable," he said.  

Meanwhile, entrepreneurs said NRB sits idle until the problem is imminent. It must create a policy environment to channelize investment in productive sectors and maintainenough liquidity in the system.

Likewise, tightening the imports of goods that contribute to revenue collection can give rise to another challenge on the part of the government.

"They are the major sources of revenue. Pros and cons of this tradeoff must be analysed before checking the imports," said Dr. Khanal.

 

Finance Minister in action

Finance Minister Janardan Sharma, after presenting the replacement bill at the parliament a couple of months ago, had pledged to mobilse about 10 per cent of the total capital budget each month. But at the end of five months of the current fiscal year, it is still way below 10 per cent.

 In an apparent attempt to alter the situation, he directed the development ministries to mobilse about 30 per cent of their respective capital budget by mid-January 2022.

He also vowed to provide all necessary support to the executing agencies in terms of capital expenditure. If his directives are implemented, the liquidity pressure in the system would probably relax.

 

Published in The Rising Nepal daily on 23 December 2021. 

NRB devising long-term strategy to address recurring liquidity crisis

Kathmandu, Dec. 22

The Nepal Rastra Bank (NRB) has said that the policy to tighten the import of luxury goods is the short-term alternative to increase the liquidity in the banking system.

"Huge rise in the imports has forced the government and central bank to find ways to curtail it. However, this austerity measure is used as a short-term measure," Governor of the NRB, Maha Prasad Adhikari said at an interaction programme with economic journalists on Wednesday.

The central bank is working on the mid-term and long-term strategy to address the recurring challenges of liquidity pressure and depleting foreign exchange reserves, he said.

According to him, the central bank would make necessary interventions in the financial system if there were any problems but if the new policies created negative impacts or didn't deliver the expected results, they will be amended or replaced with new ones.

Governor Adhikari said that the recent directives of the central bank to maintain cash margin when opening Letter of Credit (LC) while importing luxury items was an effort to discourage the import of such goods. "If there is genuine demand, the policy does not bar the importers from brining in luxury goods to the country," he said while stating that this step wouldn't increase the price of goods either.

Executive Director of Economic Research Department at the NRB, Dr. Prakash Kumar Shrestha, said that the current economic status of the country was not as worse as projected. "Indicators like remittance inflow, foreign exchange reserve, and liquidity seem weakened this year when we compare them with the corresponding period last year. That was a unique situation created by the COVID-19 pandemic," he said.

For example, the foreign exchange reserve was used up at the rate of Rs. 73 billion per month four years ago. Last year, it was Rs. 80 billion per month and it has come down to Rs. 78 billion a month this year.

"If we skip the abnormal situation of the previous year, indicators don't look so scary," said Governor Adhikari.

He maintained that the abrupt revival of the businesses and economic activities in the aftermath of the second wave of the COVID-19 had used up the resources and created pressured in the financial system.

"Economic revival has caught speed. This was sure to have impact on the growth and liquidity," he said.

President of the Nepal Bankers' Association (NBA), Anil Kumar Upadhyay, pointed to the need to create innovative methods to lead the country's economy to the new normal after the pandemic. "There haven't been any discussion regarding the strategy to be adopted in the new normal," he said.

Similarly, President of the Nepal Finance Companies Association, Saroj Kaji Tuladhar, said that the bad debt and unproductive lending will increase when there is high liquidity.

President of Development Bankers' Association Nepal, Pradyuman Pokharel, stressed on channelising remittance to productive sector and development projects. 

Published in The Rising Nepal daily on 23 December 2021. 

KMC positive on managing community campus in Valley

Kathmandu, Dec. 22

Mayor of Kathmandu Metropolitan City (KMC), Bidya Sundar Shakya said that the metropolis would mull extending cooperation in managing a community campus in the Valley.

Speaking at the 31^st anniversary programme of Janamaitri Multiple Campus in Kuleshwor Height on Wednesday, he expressed his readiness about further discussions on the topic.

He said that even though they had done well in physical infrastructure by allocating large amount of money in the field of education, they have not been able to go beyond that. He said, "I will discuss this proposal, but it is not easy to materialize this. There are risks that other campuses will start chasing me why the KMC chose a certain college, in this case JMC, and why not theirs?"

However, Mayor Shakya said that the KMC would discuss the management of the college.

Chairman of JMC's Board of Directors and economist, Dr. Dilli Raj Khanal, said that the campus had made efforts to create a robust infrastructure to extend quality education at a reasonable cost. "The campus would not compromise in terms of quality education," he said.

Campus Chief Bholanath Ojha said that the KMC should run a campus as Bhaktapur Municipality is running Khwopa College.

"If the KMC wants to run the college, it would be better to run the campus by playing a coordinating role between Kathmandu Metropolitan City and this people-friendly multi-purpose campus just like Bhaktapur Municipality runs Khwopa College."

According to him, same modality could be applied in terms of JMC. The campus had proposed the subject to the KMC a couple of years ago.

JMC is the first community college in the valley to have a Quality Assurance Accreditation (QAA) by the University Grants Commission. More than 1,600 students are pursuing their secondary and higher education in various areas, including humanities, management, computer science and education, here. 

Published in The Rising Nepal daily on 23 December 2021. 

PM asks authorities to complete post-quake reconstruction

Kathmandu, Dec. 22

Prime Minister Sher Bahadur Deuba has instructed the concerned bodies to complete the remaining works of the post-quake reconstruction.

Speaking at the 21^st meeting of the National Reconstruction Authority (NRA)'s Steering Committee on Wednesday, he assured that there wouldn't be shortage of budget for the remaining works.

He also thanked national and international agencies, including the political parties, governments of all levels, academic community, media personnel, local community, non-government organisations, civil society and all earthquake victims, for their direct and indirect support in the reconstruction drive.

Vice Chairman of the committee and CPN (UML) Leader Subash Nembang suggested keeping the experience and learning of reconstruction in institutional memory. For that, all knowledge and learning obtained during the reconstruction process should be transferred to the National Disaster Risk Reduction and Management Authority (NDRMMA) and made more autonomous and powerful, he said.

Likewise, the committee has thanked the NRA leadership and the entire NRA family for successfully completing the works related to the reconstruction of the structures damaged by the earthquake of 2015 and the rehabilitation of the displaced families.

Chief Executive Officer of the NRA, Sushil Gyawali, said that disaster resilient development should be taken as an integral part of the national development plan and the NDRRMA should be provided with necessary legal management and manpower.

The meeting also made decision regarding the transfer of functions and rights, liabilities, assets, accounts, documents and other details under NEA.

The NDRRMA will now facilitate, coordinate and monitor the reconstruction and rehabilitation works being operated by the NRA.

Similarly, responsibility of preparing an integrated report about the recurrent and capital expenditure and audit reports under the NRA is also given to the NDRRMA.

In addition, the agency will also look after the seismic housing reconstruction projects being implemented as per the agreement with the World Bank.

The Department of Urban Development and Building Construction under the Ministry of Urban Development will look after the physical construction work of the Dharhara Tower, Singha Durbar, Ranipokhari's Shantibatika section, Harihar Bhawan and Ranodwip Durbar under Narayanhiti Museum. Ranipokhari will be handed over to the Kathmandu Metropolitan City.

The documents have been handed over to the concerned ministries and departments in the last week of August under the Central Project Implementation Unit (Building), Central Project Implementation Unit (Education) and Central Project Implementation Unit (Grant Management and Local Infrastructure).

The meeting expressed satisfaction over the successful conclusion of the 'International Conference on Reconstruction of Nepal' held in Kathmandu from December 7 to 8 in the midst of the epidemic of COVID-19.

Minister for Education, Science and Technology, Devendra Poudel, and Minister for Urban Development, Ram Kumari Jhakri were also present at the meeting. Likewise, Chief Secretary Shankar Das Bairagi, Chief Executive of NDRRMA Anil Pokharel and other officials were present at the meeting.

The tenure of the National Reconstruction Authority is coming to an end on December 26, according to the provisions of Section 3 (3) of the Earthquake Affected Structures Reconstruction Act, 2015 and the corresponding decision of the Council of Ministers of the Government of Nepal last December. 

Published in The Rising Nepal daily on 23 December 2021. 

MoICS starts initiative to revise trade strategy, private sector wants a revamp

Kathmandu, Dec. 21

The government is planning to formulate a new trade integration strategy to promote the export of Nepali products and support in the economic development of the country and job creation.

The Ministry of Industry, Commerce and Supplies (MoICS) is working to create a new version of the strategy that largely failed to achieve the goals set in the past.

Currently, it is assessing the impacts of the previous National Trade Integration Strategy (NTIS), 2016 to identify the major strengths and weaknesses of the programme in order to create more effective one.

"Export promotion is one of the top priorities of the government as it would help in job creation and expansion of economic activities. The government will formulate the new strategy in close consultation with the private sector," Secretary of the MoICS, Arjun Pokharel has said at the 'Post-COVID revival seminar' organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) last week.

The MoICS has conducted a discussion with the private sector organisations and other stakeholders.

The Nepal Chamber of Commerce (NCC) has suggested the government to include the hydroelectricity as the export commodity in the NTIS.

"Continuing with what we are doing now won't help in trade promotion. Government mostly remains idle after formulating the policies. Reducing trade deficit should be the top agenda of the government, not only the MoICS," said Rajendra Malla, President of the NCC. 

According to him, Nepal had failed in export promotion of the goods like cashmere, tea and garment that have high potential because of poor branding. He said that collective trademarks of potential goods that are already performing well in the international market should be developed and promoted.

"Government should implement incentives on export. Simplifying and supporting in the marketing of 'made in Nepal' goods in the domestic and international markets could be the key to success of the strategy," said Malla.

He recommended including hydroelectricity in the new NTIS if the country aimed to develop the strategy to support in import substitution in the long-term.

Chair of Export Promotion Committee at the FNCCI, Manish Lal Pradhan, said that the amendments in the framework couldn't help much, it needs to be revamped.

"Policy is changed twice in the past but results were not encouraging. Product selection method should more robust and practical. Goods like felt that have high export potential should be included in the strategy," he said.

According to him, one-door policy is not a clear framework while there is confusion about the value addition as well. Currently, the product should have 30 per cent value addition to get the export incentives but the private sector entrepreneurs want it at the two levels.

Similarly, there is not close coordination among the ministries and government agencies, apart from the MoICS, other government bodies did not care about the NTIS, entrepreneurs said at the post-COVID revival conference.

The private sector organisations have suggested the government to prepare the NTIS as an instrument for the graduation of the country from the Least Developed Country (LDC).

"Its been more than a decade the private sector has been demanding the establishment of accredited lab but we still don't have the facility," said Pradhan and added that infrastructure like energy, roads and labs should be developed at the earliest.

The government had launched NTIS in 2010 and 2016. It had revised the 2010 strategy and reduced the goods and services having high export potential to 12 from 19 – nine products and three services.

The list included leather and footwear products, readymade garments, pashmina, hand woven carpet, black cardamom, ginger, tea, and medicinal and aromatic plants. Likewise, remittance generating services, information technology, business process outsourcing and IT engineering, and tourism were also included in the NTIS 2016. 

However, the exports of the high potential goods have been continuously decreasing over the past decade.

Published in The Rising Nepal daily on 22 December 2021. 

Chhatrapati hospital installs oxygen plant

Kathmandu, Dec. 18

Chhatrapati Free Hospital in Kathmandu Metropolitan City Ward No. 17 has installed a 100-cylinder capacity oxygen plant.

Minister for Energy, Water Resources and Irrigation, Pampha Bhusal, inaugurated the facility on Saturday morning. The plant is supported by Daya Foundation, United Neva, an organization of Nepalis in USA, ION and more than a dozen other organizations and individuals.

The plant is installed at the cost of Rs. 14.5 million.

Minister Bhusal expressed confidence that it would further help in the fight against the coronavirus pandemic. "Nepal needs to be prepared in advance as the new variant of the virus is spreading to other parts of the world. Oxygen plant at the hospital would play an important role in saving the lives of the people," she said.

Since the hospital is located in the middle of the urban area and extending its services to poor and helpless people, the government would extend additional support to it, said the Minister.

She assured that the government would provide free electricity to the hospital.

Navin Manandhar, chairman of the ward, said that the hospital had played a significant role in the 2015 earthquake and the current COVID pandemic.

Chairman of Chhatrapati Free Hospital Dr. Manojman Shrestha informed that the new building has been managed in such a way that there is no shortage of oxygen. He expressed his commitment to be more dedicated in the service of the helpless, poor and low-income people in the days to come.

Published in The Rising Nepal daily on 19 December 2021. 

ICT Awards honour 12 best companies, personalities

Kathmandu, Dec. 18

The ICT Award 2021 has honoured 12 best personalities and companies.

Expert of Information and Communication Technology, Manohar Kumar Bhattarai, received the pioneer ICT Award, and Nepal's first female computer engineer Guna Keshari Pradhan was honoured with Women ICT Award.

Likewise, Dipesh Pradhan, the founder of Yomari, was also honored with the Entrepreneur ICT Award. Prashant Dhungel, co-founder of GrowBydata, received the Nepali Diaspora ICT Award.

Organised by Living with ICT, the sixth edition of the ICT Award, had received over 400 online nominations for this year's prize.

This year, the Department of Land Management and Archive received the Digital Governance ICT Award. The department has won awards in competitions with more than 30 different government agencies. Nepal Clearing House (NCHL) was also awarded by the Digital Services ICT Award. In the public sector, Kalika Manavgyan Butwal received the Digital Education ICT Award, while Rato Bangla School Patan received the Digital Education ICT Award in the private sector.

Similarly, Kheti Venture won the Startup ICT Award, one of the most prestigious categories in the competition which included public voting as well. Mikha Product was honored with the Product ICT Award. Likewise, Mushoor was awarded the Rising Star Innovation ICT Award, which was created by Pulchowk Engineering students.

Minister for Communication and Information Technology Gyanendra Bahadur Karki, former Communication Minister Parbat Gurung, secretaries Dr. Baikuntha Aryal and Suresh Acharya, members of National Planning Commission, Dr. Pushpa Raman Wagle and Dr. Ram Kumar Phuyal, handed over the awards and certificates to the winners.

Rastriya Banijya Bank has provided up to Rs. 1.5 million in concessional loans to three winners of the Startup and Innovation, Ncell provided Rs. 300,000 to the winner of the Woman Icon ICT Award, Huawei provided Huawei Cloud service worth Rs. 300,000 to five startups winners, Genese Solutions provided a free consultant to the winner, and two schools received a one-year Zoom facility. Additional prizes included attractive data packages, DishHome Internet services, e-sewa, and other affiliates.

Minister Karki said that the award has aided youth working in the ICT sector in encouraging and developing their skills. "ICT has become the foundation for the social and economic development. The government is ready to move ahead in a collaborative way with all stakeholders to promote ICT sector development and create better policies," he said.

According to Hempal Shrestha, Jury Coordinator of the ICT Awards, award selection process included 12 jury members and 15 advisory committees.

Published in The Rising Nepal daily on 19 December 2021. 

NBL to distribute 14% bonus shares, 3% cash dividend

Kathmandu, Dec. 18

Nepal Bank Limited has decided to distribute 14 per cent bonus shares and 3 per cent cash dividend to its share holders.

The 62^nd Annual General Meeting of the bank the other day unanimously passed the proposal of the company to distribute Rs. Rs. 379.1 million in cash dividend (equal to 3 per cent of the paid-up capital Rs. 12.63 billion) and bonus shares worth Rs. 1.76 billion.

After the distribution of the bonus shares, the paid-up capital of the bank will be Rs. 14.40 billion.

The meeting was organised in hybrid format – physical and virtual. Speaking on the occasion, Chairman of the Board of Directors of the Bank, Suman Raj Aryal, said that the bank would incorporate the suggestions from its shareholders to company operations. 

Published in The Rising Nepal daily on 19 December 2021. 

Parties need to adjust policies to meet public demands: Karki

Kathmandu, Dec. 17

Minister for Communication and Information Technology Gyanendra Bahadur Karki has said that the country is in the process of renaissance of politics and development so political parties should be able to meet the demands of time by adjusting their policies.

"Strengthening the internal unity and exploiting the natural resources for the holistic and sustainable development of the country should be our priority in order to benefit future generations from present initiatives," he said while speaking at a programme organised to launch a book 'Gaida's dance with tiger and dragon' published by Friedrich Ebert Stiftung (FES) Nepal office.

According to him, Nepal should focus on harnessing benefits from the two large markets in the neighbourhood – India and China.

He also said that the FES has supported in the leadership development of Nepali political leaders and he was also one of the beneficiaries of such programmes.

Nepal's proposed Ambassador to the United Kingdom, Gyan Chandra Acharya, said that Nepal should balance its relations with the two economic giants in the region.

"Positive opportunities and impacts should be amplified while the negative sides downplayed," he said.

Resident Representative of FES Nepal, Jonathan Menge, said that digital security was the issue of growing concerns. According to him, Nepal should explore ways to cope with news challenges.

According to the publisher, the book deals with some of the pressing issues such as prospects for development, national security, geopolitics at the neighbourhood and foreign policy options for small states.

Chandra Dev Bhatta, chief of FES in Nepal, said that there is demand for redefining the classical bilateral relations with India and China as Dragon is coming to Kathmandu prominently in recent years and people to people relations with India have become stronger in the wake of recent communication development.

The book is divided into four different sections: prospects for development, national security, dancing with tiger and dragon, and foreign policy option for small states. Contributors of the book include Professor Dr. Achyut Wagle, former Ambassador Madhu Raman Acharya, former Vice Chairman of National Planning Commission, Dr. Jagadish Chandra Pokharel, security analysts Dhruba Kumar, Geja Sharma Wagle, Indra Adhikari, and Nihar R. Nayak, Assistant Professor Dr. Lila Nyaichyai, and political scientists Anand Aditya, Dr. Mendee Jargalsaikhan, and Dr. Nargiza Muratalieva.

Published in The Rising Nepal daily on 18 December 2021. 

Promoting Interest Of Small Investors

 The global COVID-19 pandemic propelled an unexpected growth of the share market in Nepal. The entire economic and business sector was battered by the pandemic as health safety measures and lockdowns sent many industries and trades out of operation, resulting in hundreds of thousands of job losses, and a sudden fall in export trade. But to the surprise of many, the share market caught the bullish trend and registered continued growth.

The NEPSE (Nepal Stock Exchange) index, which was at 1178 in July 2019 jumped to 1590 October-end last year while the country was trying to return to normalcy after a four-month-long lockdown during the first wave of the coronavirus.

Market capitalisation reached Rs. 4143 billion in August 2021 from Rs. 2118 billion in October 2020. Meanwhile, the NEPSE index touched its highest point of 3138. This bullish trend in the time of pandemic was the result of the expansion of share markets with the online application, a large supply of shares and limited sectors of investment during the difficult times.

Share Market Boom
The post-lockdown in 2020 witnessed a massive influx of shares through the initial offering. For example, 80 million units of shares worth Rs. 8 billion were issued by Nepal Infrastructure Bank Limited (NIFRA) while about half a dozen hydropower companies and service sector industries like Chandragiri Hills issued their shares to the public.

While the four-month-long lockdown snatched away jobs and income from about a million people, savings of a large number of people, especially government and private sector employees and entrepreneurs involved in the business of essential goods, increased significantly. The lower-middle and middle-class people, called the engine of the economy, had no opportunity to spend their money. Had there been a normal situation, people would have gone out for dining, trekking, family trips and adventure tourism and thus would have spent money.

Meanwhile, restrictions and limited mobility affected the celebrations of the New Year 2077 and the major festivals – Teej, Dashain and Tihar. This resulted in inflated savings of many since investment in other areas was uncertain thus the share market became a comfortable resort to utilise the savings and earn money while staying at home. 

At the same time, the Security Board of Nepal (SEBON), the capital market regulator, and NEPSE, the operator of the stock exchange, pushed a rapid information technology transformation in the sector. The share transaction was made fully automated and people can apply for Initial Public Offerings (IPOs) from their computers or hand-held devices. Likewise, Trade Management System (TMS) was also launched to enable people to conduct their shares trading themselves.

Capitalisation Larger Than Economy
These conditions paved the way for the entry of millions of investors into the share market and market capitalisation surpassed the size of the economy of the country. On August 19 last year, the market capitalisation reached Rs. 4443.1 billion while the size of the economy by the end of the last fiscal year 2020/21 was estimated at Rs. 4266.3 billion.

According to CDS and Clearing (CDSC) Limited, the number of Demat accounts has reached 4.7 million by 26 November 2021. In March last year, the number was 3.12 million, while by mid-August last year only 1.85 million Demat accounts were opened. A Demat account is a repository to store the shares and securities in electronic formats, which helps in the safe, fast and reliable transaction and transfer of shares. It is also said dematerialization of shares.

The exponential growth of about 1.6 million in Demat accounts over the last eight months is enough to tell about growing public attraction to the share market, at least for those buying IPOs. The online application of the IPO facility via Mero Share made it possible for people residing in remote rural areas to buy shares. Every IPO brought out in the last two years is oversubscribed by multiple times. As per the CDSC statistics, there are 3.85 million Mero Share users in the country at present.

Protecting Small Investors
With an increasing number of investors entering the secondary capital market, concerns are growing about promoting their interests and protecting them from losing investments in the stock market.

The recent correction in the share market has created a slight panic on the part of small investors, which is sure to grow if the NEPSE index slides further. According to the share market experts, the recent bearish trend in the market is the result of the policy of the Nepal Rastra Bank that put a ceiling to the margin lending – a loan obtained against the collateral of investors' existing shares. The monetary policy for the current Fiscal Year 2021/22 has set the margin lending size at Rs. 120 million at maximum for organisational investors and Rs 40 million for individual investors. 

Although the number of share market investors that obtained margin lending was larger than the amount Rs. 120 million is just about 160, the new policy shook the entire market. It happened because the large investors have their influence on the market and small investors as well as on media, which may result in a fear of the oversupply of shares that can result in the market downfall.

Many investors waited for the NRB to correct the policy through a review of monetary policy in November last year, but the central bank kept it intact and made no amendments to its policy. However, an investor said that the market would see a recession for some days but the index wouldn't go below the 2600 point.

As Nepali share market is not run by the rule that the international markets like the rules that guide the Bombay Stock Exchange or the New York Stock Exchange, it is immature to predict the growth or fall of Nepali share markets. The price of some hydropower companies that have negative net worth is above Rs. 600.

But large investors often spread rumours about growth or decline in the market to create panic in the market just to secure their profits. When small investors flooded to sell their shares fearing the further decline in the market, it is called a 'panic sale'.

Many investors say that the ceiling set for margin lending is just an excuse for the large investors while it does not make any difference for them. "This is a useless agenda that large investors are trying to pull up to a quarterly review of monetary policy," said an investor.

Indicating a panic sale seen in the last few days, Ambika Prasad Poudel, an investor, wrote on social media that the decreasing NEPSE pressurised the investors to sell the shares but the large investors should not be blamed for it in future.

Capacity to Invest
Executive Director of SEBON, Niraj Giri, said that investors must know their capacity to bear the risks. "No business or market guarantees profits or benefits. Risks are associated with every business and investors may lose sometimes. They should have an alternative to soaking up the shocks created in the stock market," he said.

The new entrants of the market must spend some time studying and understanding the stock market. They should analyse the last three years' financial status of the company they are going to invest in, the profits it made and dividend it distributed. It does not take much time but most of the investors are not interested to spare some time understanding the market and running after the rumours or suggestions of their friends and relatives.

"An investor investing Rs. 1 million in a grocery shop or a café spends more than 10 hours in the business and tries to understand its nitty-gritty, but a person who invests Rs. 5 million in the share market barely spends an hour a day to understand and assess the market situation," said Raj Kumar Timilsina, former President of Investors' Forum.

Know the Company
While buying an IPO, an investor must know the financial status such as net worth and loss, management aspects and risk aspects of the issuing company. He/she should invest only after a thorough analysis of these elements. Investors should remain aware of the risk of a change in the market price of the shares after their listing at the stock exchange. 

In the secondary market, they should purchase shares through the stockbrokers listed at SEBON. They can get updates about the market from the website of the NEPSE and can consult a share broker for wise investment options. It is better to diversify a portfolio across various sectors like banking, insurance, hospitality and information technology so that a recession in a sector would not affect the investors much.

Similarly, investors should be vigilant about the new policies that can affect the stock market. The policy of the central bank, SEBON and another sectoral regulator can instantly influence the market. They should also be aware of the bonus share or cash dividend announced by the company they have invested in so that they can obtain the benefits in due time.

Insider Trading and Cornering
Likewise, investors should be aware of insider trading and cornering. Insider trading refers to the use or abuse of strategic information like the announcement of a bonus or merger and acquisition of a company to buy or sell the shares before the announcement of the information publicly. Although it is illegal, it goes unabated in the absence of a robust mechanism to monitor insider trading.

Experts suggest that SEBON should have the right to tap the telephone or scrutinise emails/messages of the member of the board of directors of the company for the period of proposing bonus, dividend and merger or acquisition. Else, such information should not be disclosed in the agenda for the annual meeting sent to the directors of the company. It should be disclosed at the meeting and publicly announced immediately.

Similarly, cornering is carried out for acquiring shares of a small company in a large number to manipulate its price. According to Investopedia, the term implies that the market has been backed into a corner, and there is nowhere for the market to move to find other sellers and buyers. 

In the case of Nepal, shares of Chandragiri Hills and some microfinance banks were cornered, a source at SEBON said. It can be checked by creating a division at the exchange to trade the shares of small and medium enterprises (SMEs). Two different boards can be created at NEPSE to facilitate the trading of the shares of small companies on a separate platform.
SEBON has made significant progress in terms of policy formulation regarding the market development, monitoring and regulation but it has largely failed in the regulation part.

Investors' awareness
The capital market regulator, SEBON, Investors' Forum, Merchant Bankers' Association of Nepal, NEPSE and many other stakeholders are organising training and awareness programmes for the share investors. Even the brokers are conducting such programmes on their own. But they say that there is a need to increase the frequency and reach of such programmes.

Capital Markets
A capital market is a platform where securities are bought or exchanged. Companies that need funds sell securities to raise money while traders buy or trade securities to earn profit by selling the derivatives (now digital) or from the dividend or bonus of the respective company. The stock market, commodity exchange and bond markets are the parts of the capital market.

This market is divided into primary and secondary markets. New securities are issued in the primary capital market. This is where companies raise money for their business from public investors. Similarly, the secondary market is the venue where the investors trade the securities previously issued by companies. These tradable assets are called financial instruments – a document representing a legal agreement that involves certain monetary value.

Published in The Rising Nepal Daily's Friday Supplement on 3 December 2021. 

The Future Is Digital

 More people scroll up and down on their handheld devices to get the news and information rather than flipping the pages of a newspaper. It is simple, easy and quick. Being online automatically increases the reach of and access to information as it functions beyond the physical borders of the country and becomes available to people across the globe in a fraction of a second. Every traditional news medium has no alternatives but to adapt to the internet.

Every medium, even the television that is instantaneous and offers multimedia production, converges with the internet to keep it alive. It has changed the way people used to use media. Earlier in 1960s and 70s, television had risen as a family medium as the newspapers and radio have become more personal media. 

Marshal McLuhan had noted in the mid-1960s that the advent of television heralded the retribalisation of society as people who used to sit alone at the corner of the room or in the garden to read a newspaper or book had started to gather at the drawing-room to watch the television with their family. But the internet has changed the way people watch television, they use their hand-held devices to access their favourite television channels or programmes. Now it is not necessary to sit in front of the TV while the programme is broadcast, you can watch it later on YouTube or OTT platforms.

Flexible medium
The shareability of information, interactivity, archival facility is the features of the online medium, while users can be guided to further explanations, follow-ups, and previous coverage via hyperlinks, which also ensures that the users will stay with the medium. It is unlimited and users can spend hours and days surfing the internet. In contrast, newspapers are slow, incomplete and limited. For example, in the immediate aftermath of the devastating earthquake in 2015 and during the Indian border blockade to Nepal in 2015/16, most of the newspapers reduced their pages.

Similarly, during the first lockdown announced to save people from the global COVID-19 pandemic, many newspapers halted their print editions while the online versions were running smoothly as the reporters and editors could write and prepare stories from their own homes. A few of them are closed forever. 

In this way, printed media shied away from their responsibility of informing the masses when there was the need to disseminate information the most. But convergence to the internet helped many to stay alive, for example, some of the dailies from outside the Kathmandu Valley, collected the news, prepared them, and designed the pages as well they did not publish it rather distributed the designed pdf pages to their readers online.

Newspapers have a challenge distributing their physical copies. Many readers terminated their newspaper subscriptions during the first lockdown in 2020. Likewise, the cost and human resources needed to produce the newspapers is astonishingly high compared to internet publishing. Publishing a newspaper is a complex process with people working throughout the night to make sure that the paper reaches its readers early in the morning. However, there are multiple occasions when it does not reach the readers in time.

First broadsheet
The Rising Nepal is the first English broadsheet daily newspaper in the country with a history of more than five-and-a-half decades for publication. It is a sister publication of the first newspaper of Nepal, Gorkhapatra daily, which is in publication for the last 121 years and is one of the longest surviving newspapers in the region. It has witnessed political, social and economic changes in the country and recorded the history of both the rulers and people. It is one of the early adopters of the internet and was one of the first newspapers to be available online.

The newspaper should not delay in adopting the digital tools and having a user-friendly web portal that fits the mobile environment. Spaces should be created to facilitate public discussion and interaction on the issues of social concern. 

It may also provide information for news or angles to create one. Such interaction forums should be different and advanced than the ones on Facebook, Twitter, WhatsApp and other social networking sites. If we begin to address/listen to the readers' concerns, The Rising Nepal will have their ownership. Public concerns can also be presented in the form of vox-pop.

Last battle
Newspapers are fighting their last battle with the internet. The battle is fiercer than with the one it had with the television. One of the most effective tools is media convergence and promotion of multimedia related to the print version of the news stories. Links of such materials can be presented in print versions, in the form of a web link or QR Code. Audio and video clips of the event or news source could be uploaded online to add extra credibility to the story.

So far as the issues for the coverage are concerned, culture, society and development are the areas that are downplayed in other media. TRN can create a niche in the market by highlighting these issues. Likewise, although it is an English medium and targets foreign nationals in Nepal, professionals, tourists, expatriates and youth (primarily college students), it must be local in terms of content creation. 

International and national issues are also the priority areas for many other media in the country. It is difficult to create a content identity in a country like Nepal where there are more than 3,000 online news portals, 850 newspapers and magazines, 800 FM radios and about 150 TV channels.

Likewise, TRN has so far offered plain news information. It must give priority to infographics to simplify information and attract more young readers. Breaking the traditional style/structure and rules of news writing is also the need of the day. There should be more human interest elements in the news with in-depth coverage, explanation and description.

Increase social media presence
Although the print versions of the daily newspapers have a short lifespan from now, there certainly are some alternatives to their survival.

Increasing the social media presence of the medium will help in the promotion of the newspaper and its online version. At the same time, it will also hold the readers. Therefore, the paper should have a dedicated team to operate social media accounts, at least on Facebook, TikTok, Twitter, YouTube, WhatsApp and Instagram. Social media has another plus point, they are good platforms for marketing and content promotion.

Long-form is the next alternative for the survival of print media. Since most of the issues and events are covered and reported multiple times a day, events reporting is no longer a domain for the daily newspapers that come out the next morning. TRN should regularly present a couple of exclusive stories – interpretative or analytical – every day to keep its readers with it. Teasers of such stories could be promoted through online and social media accounts. But if the paper decides to do this task, it needs to expand its human resource base since it has been understaffed for quite some time.

After having all these facilities, enhanced connections between the print version and online version of the medium should be created to increase the readership. Then TRN can launch an online subscription. Coupons for an online subscription can be offered in the print edition.

A premium medium
Some newspapers should be made available in the print version as a premium medium of mass communication that could be circulated to the interested groups as well as public places like airports, railway stations, hotels and restaurants. 

People need or want to change their taste of reading and the pattern of information consumption for various reasons. Likewise, for some readers, reading something in papers is serious and more intrusive than going through a piece of information online.

Published in The Rising Nepal daily's special edition brought out on its 56th Anniversary on 16 December 2021.