Scant budget spending a bane for development

Kathmandu, May 28

The country is set to receive the budget for the next Fiscal Year 2022/23 on Sunday amidst a dismal performance of capital and recurrent allocations in the current FY 2021/22.

As the major ministries mobilising the capital allocations for the development and infrastructure projects across the country fared poorly, the federal government could spend only 33.12 per cent of the Rs. 378 billion capital budget by Friday. It means, only Rs. 125.2 billion is disbursed from the Financial Comptroller General Office till the other day.

The capital expenditure so far this year is less against the same period of the previous year with 37.6 per cent mobilisation of development allocation.

Although the size of the budget has been significantly increased for the current fiscal year – from Rs. 1474.6 billion of 2020/21 to Rs. 1632.8 billion in 2021/22 – and COVID-19 pandemic is largely under control with a brief rise in the cases in January, the government at all levels performed poorly in budget mobilisation.

However, the recurrent expenses are identical with 70.7 per cent this year and 69.08 per cent last year. As per the current expenditure indicators, there are less chances for optimum utilisation of the budget.

Sensing this scenario, Minister for Finance, Janardan Sharma 'Prabhakar', has adjusted the size of the budget to Rs. 1546.2 billion, 94.7 per cent of the total, in the mid-term review of the budget. Likewise, recurrent expenditure is reduced to Rs. 1035.4 billion, capital to Rs. 340.3 billion and financing to Rs. 170.5 billion.

Even according to the budget adjustment, the government is under the pressure of spending the remaining 215.1 billion in the remaining 48 days of the current fiscal year which means about Rs. 4.48 billion should be used up in a day.

Meanwhile, the growing prices of steel and other construction materials in the wake of the Russia-Ukraine war had resulted in the contractors' demand to review the tender agreements to adjust the price. As per the rule, the government cannot spend more than 20 per cent of the total capital allocation in the final months of the fiscal year. It means the capital budget would still remain unused even after the adjustment.

 

Underspending becomes a trend

This is not just a sporadic occurrence, it has become a trend in the country for the past many years. For example, Finance Minister Bishnu Prasad Paudel had downscaled the budget by 14.1 per cent while capital expenditure was reduced by 14.8 per cent in the last FY 202021. That year size of original budget was Rs. 1474.6 billion and capital allocation was Rs. 3529.1 billion.

Likewise, citing the impact of the coronavirus on the economy and development activities, FM Dr. Yuba Raj Khatiwada in FY 2019/20 had reduced the size of budget in the mid-term review.

The revised government expenditure for that year was expected to be at Rs. 1073.3 billion, which was 70 per cent of the total allocation Rs. 1532.9 billion while capital expenditure stood at 58.6 per cent of about Rs. 408.6 billion.

Similarly, in the year before the COVID-19 hit the country, FY 2018/19, the Finance Ministry had reduced the size of the budget to Rs. 1208.3 billion, which was 91.8 per cent of the total allocation. The capital budget was also adjusted to 86.9 per cent.

 

Provinces fail to perform

Contrary to the earlier expectations that the creation of the subnational bodies would help in better execution of the budget and utilisation of resources, the provinces have failed to spend the budget allocated to them.

According to the Nepal Rastra Bank (NRB), in the nine months of this year, total resource mobilization of provincial governments remained at Rs. 125.53 billion. The federal government had transferred Rs. 90.04 billion as grants and revenue from federal divisible fund to provincial governments and the provincial governments mobilized Rs. 35.48 billion in terms of revenue and other receipts in the review period.

However, the total expenditure of provincial governments by mid-April stood at Rs. 80.62 billion, said the NRB. But the federal government had earmarked Rs. 387.3 billion (23.72 per cent) for intergovernmental transfer to the provinces and local levels. Better utilisation of this budget could result in better project execution.

In the last fiscal year 2020/21, Bagmati and Sudurpaschim provinces expected to spend 74 per cent and 72.6 per cent of their budget. The expectations were announced on the basis of nine months' statistics of budget utilistaion. However, Karnali and Province 1 said that they would utilise only 46.4 per cent and 60 per cent of their budget, respectively.

 

Poor HR and project management

Former Finance Secretary, Remeshwore Khanal, said that the reasons behind the failure to implement development projects are poor human resource and project management, lack of project preparedness and budget allocation to the projects that can't utilise it. For the past many years, the government allocated budget in billions for the international airport project in Nijgadh but most of the budget was surrendered by the end of the year.

"Until the trend to change project managers with the change in the ministerial leadership, and installation of henchmen at the projects, this trend of budget underutilisation will not be improved," he said.

According to him, political 'bhagbanda' in the appointment of the project managers and budget allocation at the whim of leaders have been the major challenges to the development work.

To improve the budget expenditure, the budget is announced about one-and-a-half months before the beginning of the fiscal year, and the provision to seek approval from the MoF is removed, and ministries and line agencies can start spending from the first day of the new fiscal year. But the situation has remained intact.

New policy to use the budget

FM Sharma had announced to spend 10 per cent of the capital budget each month after October last year but it fell into the deaf ears. He had also initiated multiple discussions with the line ministries, provinces and other stakeholders to make improvements in the utilisation of the budget.

FM Sharma has pledged to enact new policies for better execution of the budget of the upcoming year 2022/23. In the Policy and Programmes of the government for the next fiscal year, he said to enhance allocation efficiency and institutional capacity, and maintain fiscal discipline.

Likewise, he had said that budget wouldn't be earmarked for the projects that are not technically and economically feasible. 

  Published in The Rising Nepal daily on 29 May 2022.  

Economic Survey projects growth at 5.84%

Kathmandu, May 28:

The government has projected economic growth rate of 5.84 per cent for the current fiscal year 2021/22.

According to the Economic Survey 2021/22 presented by Finance Minister Janardan Sharma in the House of Representatives on Saturday, the economic growth rate is expected to be higher than the previous year. However, this is lower than the growth projection of 7 per cent made by the government.

Due to the unseasonal rains and spread of Omicron virus, the economic growth rate could not be achieved as per the target in the current fiscal year.

The economic growth was 4.25 per cent in the last fiscal year 2020/21.

The size of Nepal's economy is Rs. 4,851.6 billion. Bagmati is projected to have a maximum share in the economy with of 36.9 per cent contribution while Karnali will make the smallest support of 4.1 per cent.

However, economic indicators, except external sector are satisfactory, said the survey.

While the contribution of agriculture sector to the total Gross Domestic Product (GDP) has been declining, the contribution of service sector is increasing. In the current fiscal year, agriculture sector is projected to grow by 2.3 per cent, industry by 8.1 per cent and services sector by 6.6 per cent.

The contribution of agriculture, industry and service sector has been 23.9 per cent, 14.3 per cent and 61.8 per cent respectively. The contribution of agriculture, industry and service sector to GDP was 37.4 per cent, 17.5 per cent and 45.1 per cent respectively two decades ago.

This shows that with the change in the structure of the country, Nepal's economy has been gradually transformed from agriculture to a service-oriented one.

In the current fiscal year, the GDP growth rate of Province 1 is 5.41 per cent, Madhes Province 4.82 per cent, Bagmati 6.74 per cent, Gandaki 6.17 per cent, Lumbini 5.36 per cent, Karnali 5.47 per cent and Sudurpaschim 4.92 per cent.

The share of consumption to the GDP was 92.3 per cent in the last fiscal year 2020/21 and it is estimated to be 90.7 per cent in the current fiscal year.

Total investment has increased in the last two fiscal years as such investment has shrunk by 25.9 per cent in fiscal year 2019/20. The total investment, which increased by 29.3 per cent in fiscal year 2020/21, is estimated to increase by 18.1 per cent to Rs. 1,807.29 billion in the current fiscal year.

In FY 2020/21, the gross domestic product (GDP) ratio was 35.8 per cent, but in 2021/22, it is expected to increase to 37.3 per cent.

 PCI increases to $1,381

The per capita income of Nepalis has reached US$ 1,381 in the current fiscal year. According to the survey, the income of Nepalis has increased by 10.8 per cent in one year.

The per capita income, which was USD 1,246 in the previous fiscal year, is estimated to reach US$ 1,381 this year. Similarly, per capita national expenditure is estimated at US$ 1,683.

FDI inflows up

Foreign direct investment in the country has increased by 60 per cent during the first eight months of the current fiscal year to Rs. 16.30 billion. The FDI inflow was Rs. 10.18 billion during the first eight months of last fiscal year.

Approximately, Rs. 228 billion investment has been approved during the first eight months of the current fiscal year.

The number of registered companies till mid-February, 2022 is 283,358.

Province-wise, Bagmati has the highest number, 70.7 per cent, registered companies against Karnali's 1.2 per cent.

Country adds 520 MW energy

Nepal's total installed hydroelectricity capacity has increased by 520 megawatts – from 1685 MW by mid-July in 2021 to 2205 MW in mid-March 2022. This is an increment of 30.9 per cent over the period of eight months, primarily backed by 456-MW Upper Tamakoshi Hydroelectricity Project.

According to the Economic Survey 2021/22 presented at the Federal Parliament by Minister for Finance, Janardan Sharma 'Prabhakar', while about 94 per cent population has access to electricity, including the alternative energy, per capita electricity consumption has reached 270-kilowatt hour.

The government has published the Economic Survey 2021/22 with annual achievements and results in various economic sectors based on the data of the eight months (up to mid-March 2022).

Only 155 KM road added

In the eight months of the current fiscal year, the country has added 155 KM of road while 265 KM road is gravelled and 325 KM is black-topped. Last year, the country had added 472 KM of new road. By mid-March, the country had about 16,939 KM blacktopped, 8,111 KM gravelled and 8,821 KM earthen road.

Total length of national highways and roads has reached 33,821 KM. Likewise, length of all types of roads including at the province and local level has increased to 64,617 KM.

Similarly, by mid-March, broadband internet service has reached to 738 offices of the local units, 6190 ward offices, 5196 secondary schools and 4147 health centres. Telephone density has reached 139.86 per cent and density of internet customers climbed to 116.9 per cent from 82.8 per cent a year ago.

Access to water supply widens

Meanwhile, 93.4 per cent people have access to the basic water supply while only 24.8 per cent population has access to high or medium level quality water supply. In the eight months, additional 42,857 people have been connected to the basic water supply facility.

More than 2.8 million beneficiaries are enrolled in various social security scheme's online system. The government has distributed Rs. 46.42 billion in social security allowances to senior citizens, single women, people with disability, minorities and children.

The country has produced 1.73 million tons of milk, 381,000 tons of meat and 1.83 billion eggs.

However, the number of tourist arrival has dropped this year by 34.3 per cent. In 2020, Nepal had welcomed 230,085 tourists while in 2021 only 150,963 foreigners came to the country.

  Published in The Rising Nepal daily on 29 May 2022. Written jointly with Laxman Kafle.  

Garden Mart opens its outlet in Bhalubang

Kathmandu, May 28

Garden Mart has opened its 19^th branch in Bhalubang of Rapti Rural Municipality in Dang district to offer different shopping experience to consumers for various items including daily necessities under one roof.

On Saturday, Chairman of Rapti, Prakash Bista inaugurated the mart at a special programme, the company said in a statement on Saturday. He said that the mart would help in creating employment at the local level and marketing the local products.

According to branch chief Dan Bahadur Thapa, the mart, run by Shivshikhar Multipurpose Cooperative, has daily necessities, rice, sugar, pulses, clothes for all age groups and toys for children. In addition, cosmetics, refrigerators, washing machines, irons, geysers and other electrical appliances are available at the mart.

Along with the operation of Mart in Bhalubang, the cooperative has also opened its 28^th branch there. Consumers will also get a certain discount when purchasing these products on the occasion of the inauguration of the mart.

The cooperative has been operating marts in Suryabinayak of Bhaktapur, Thaiba of Lalitpur, Kirtipur of Kathmandu, Lahan of Udayapur, Narayanghat of Chitwan, Hetauda of Makwanpur, Yogikuti of Butwal, New Road of Nepalgunj, Birendranagar, and Mehalkuna of Surkhet, Dhangadhi of Kailali, Dadeldhura, Ghorahi of Dang and Chandni Chowk of Banke.

Published in The Rising Nepal daily on 29 May 2022.  

1000 MSMEs getting support for business digitalisation

Kathmandu, May 28

Thulo.Com, Swiss Agency for Development and Cooperation (SDC) and the UN Capital Development Fund (UNCDF) have come together to support about 1,000 micro, small and medium enterprises (MSMEs) in Nepal to digitize their operations.

The projects will include at least 60 per cent women-owned businesses, they said in a joint statement.

"The partnership will help MSMEs digitize payments, delivery, and post-sales services in rural areas in Nepal, boosting their sales and helping them recover from the effects of the pandemic," said Surakchya Adhikari, co-founder and COO of the company.

Thulo.Com, will help MSMEs to aid from the impacts of the recent pandemic and other disasters. The company will expand operations beyond Kathmandu, focusing on MSMEs in rural and urban areas in provinces 1, Bagmati, Gandaki, and Lumbini.

MSMEs will enter new markets through the Thulo marketplace, reaching online customers, and gaining digital literacy training coupled with technical support and brand identity, and digital marketing coaching.

Likewise, Swizz ambassador to Nepal, Elisabeth Von Capeller, said that SDC aims to leverage the digital solutions and support MSMEs to gain access to the markets and networks, digitize their transactions, and eventually make way to access new sources of capital.

Similarly, UNCDF said that the project will advance the inclusiveness of the country’s digital ecosystem by fostering the digital transformation of MSMEs, which form the backbone of Nepal’s economy.

"With this project, UNCDF hopes to help Nepal become more inclusive and resilient to external shocks by accelerating COVID-19 economic recovery,” said Maria Perdomo, Regional Coordinator in Asia at UNCDF.

This UNCDF project on leveraging digital solutions for MSMEs is embedded into UNCDF’s Leaving No One Behind in the Digital Era Strategy for Nepal, launched in 2021. In addition to engaging with Thulo, UNCDF will also be working with Nepal’s MSME federations and associations, as well as the South Asian Association for Regional Cooperation (SAARC) Business Association of Home-Based Workers (SABAH) Nepal.

Published in The Rising Nepal daily on 29 May 2022.  

‘Readers are strength of Gorkhapatra’

Lalitpur, May 27

Executive Chairman of Gorkhapatra Corporation Bishnu Subedi has said that the journey of smart Gorkhapatra will succeed if it moves ahead by adopting the latest technology demanded by the time.

Speaking at a two-day workshop on 'Leadership and Appreciative Inquiry’ organised by the corporation in Godavari of Lalitpur on Friday, he said that readers are the strength and capital of Gorkhapatra so its content should be as per their interest. For this, the system and process of human resource functioning should be made 'smart'. 

The workshop is organised for the department chiefs and unit heads of the publication.

"Gorkhapatra has a 122-year history, representation of an entire era, and it has carried the civilization and culture, but we could not match our pace with the speed of digitilisation happening in the recent times," said Subedi.

Lal Bahadur Airi, General Manager of the corporation, urged the department chiefs and unit heads to be result-oriented in their jobs.

Stating that maintaining professional conduct, integrity and discipline were needed, he said that there was a need to march ahead with positive thinking and collective feeling.

Raman Bhattarai has given a presentation on 'time and stress management' at the workshop. 

Published in The Rising Nepal daily on 28 May 2022.  

Redmi 10 launched

Kathmandu, May 27

Xiaomi has launched Redmi 10 in Nepal.

With the massive camera island at the back, the phone has a smudge-free textured rear panel. Redmi 10 is 9.13mm thick and weighs around 203 grams and guarantees a blockbuster viewing experience with its huge and immersive 17.04cm (6.71) display, the company said in a statement on Friday.

Powering the device is the Snapdragon 680 chipset which is more power efficient.

Redmi has coupled the chip with up to 6GB of RAM and 128GB of internal storage.

Likewise, it comes pre-installed with Android 11-based MIUI 13, and a 6000mAh battery and 18W fast-charging support.

In terms of optics, the Redmi 10 has three sensors. The dual-camera setup on the back consists of a 50MP primary shooter and a 2MP depth camera. Upfront, there is a 5MP shooter for selfies and video calls.

Redmi 10 is available in three colours midnight black, pacific blue, caribbean green.

The price of the phone in Nepal starts at Rs. 18,999 for the base 4/64GB variant. Likewise, the high-end 6/128GB variant is priced at Rs. 21,999.

Published in The Rising Nepal daily on 28 May 2022.  

Nabil Bank in TOP 20 Banks in IJ Global

 Kathmandu, May 27

Nabil Bank has been listed among the exclusive league Table of Top 20 Banks published by IJ Global Magazine under Global Infrastructure and Project Finance category IJ Global as per Report Q1 2022.

This is a rare recognition for any bank from Nepal to be listed in the IJ Global, which is a part of EuroMoney Institutional Investor Business, and considered to be the world's largest infrastructure and project finance data sources, Nabil bank said in a statement on Friday.

According to it, the IJ Global database covers more than 32,000 transactions, 26,000 projects and 2,100 funds that are updated on a daily basis with market coverage of 80 per cent of the top project finance lenders, 90 per cent of the top law firms, and 85 per cent of the top financial advisers.

Anil Shah, CEO of the bank, said that the recognition showcases Nabil Bank’s prudent credit screening process, expertise in infrastructure financing and demonstrates the bank’s capabilities specially in energy financing.

"The construction-based industries such as cement and steel, banking with us account for nearly 50 per cent of total country’s consumption. The Bank’s exposure in Hydro power sector covers total generation capacity above 1,800 MW," said the bank. 

Published in The Rising Nepal daily on 28 May 2022.  

Fonepay Digital Economy Conclave on June 3

Kathmandu, May 27

Given the rapid digitisation of the economy in the past two years, Brandworth Pvt. Ltd. is organising a digital economy conference on June 3.

"Titled as Fonepay Digital Economy Conclave 2022, the event aims to bring the key stakeholders under one roof and discuss the latest trends, emerging opportunities, and challenges of the digitisation of the Nepali economy," said the organisers in a statement on Friday.

As economic activities are returning to normalcy from the COVID-19 related movement restrictions, the main objective of this year's conclave is to discuss the dimensions of digitisation in public life for economic growth and social justice, read the statement. 

The second edition of the conference will discuss the topics like 'Changing Times, Changing Economy', 'Creating Impacts That Last', 'Nepal-Small Market or Unlimited Possibilities?' And 'When will we have a Nepali Unicorn?'

The conclave will feature keynote speeches by Sandeep Ghosh, Visa Group’s Country Manager for South Asia and India, and Maha Prasad Adhikari, Governor of Nepal Rastra Bank.

There will also be separate sessions with Minister for Finance Janardan Sharma and Minister for Communications and Information Technology Gyanendra Bahadur Karki on digital development in Nepal.

Published in The Rising Nepal daily on 28 May 2022.  

Nepal, India can benefit immensely through hydropower development

Kathmandu, May 26

Minister for Foreign Affairs Dr. Narayan Khadka said that the construction of new railways and hydropower projects would facilitate the business community and investors in Nepal and India in the short and long run.

"Cross-border connectivity brings economies closer, promotes bilateral trade and facilitates people to people contacts which have multiplier effects in the economy," he said while speaking at the 26^th and 27^th Annual General Meeting of Nepal India Chamber of Commerce and Industry (NICCI) in the Capital on Thursday.

To enhance trade and economic activities, we have prioritised connectivity infrastructure – including roads, railways, waterways and transmission lines, stated Minister Dr. Khadka.

According to him, since Nepal holds an immense potential in hydropower generation and India has a growing demand for energy, bilateral cooperation in power sector will therefore deliver mutual gains.

"Nepal's hydropower will contribute to energy security as well as in mitigating climate change and reducing carbon footprints," said FM Dr. Khadka.

He maintained that a long-term approach in joint development of hydropower and seamless power trade will unleash further economic potentials between the two countries.

Suresh Prabhu, former Minister for Power, Infrastructure, Commerce and Industry of India, said that railway connectivity could be expanded up to Kathmandu from India. It will facilitate the movement of people and goods as well, he maintained.

He also said that Nepal can be a good destination of medical tourism so it needs to develop robust health infrastructure and required facilities, it will also help in the growth of local economy.

Prabhu also suggested harnessing the potential of solar energy alongside the hydroelectricity to strengthen the country's energy mix. "Cheap source of energy is needed to support the energy-intensive industries and it will attract investors from abroad as well," he said.

He expressed wonders that with huge potential in energy, business and natural resources, Nepal is such a small economy, and expressed hopes that it could be catapulted to a developed and prosperous nation within a short period of time.

According to him, India is a twin brother of Nepal, it’s not the 'big brother'.

Former Ambassador of India to Nepal, Ranjit Rae, said that Pancheshwor Multipurpose Project can change the dynamics of relations between the two countries and help in development. He emphasised the early implementation of the project.

Kulman Ghishing, Managing Director of the Nepal Electricity Authority, said that total wheeling capacity of Nepal-India cross-border transmission line is 1500 Megawatt. The power exchange was started in 1971 and with the cooperation with the companies like SJVN which is developing Arun III hydroelectricity, and construction of more powerful transmission lines, it will grow in the days to come.

President of NICCI, Shreejana Rana expressed concerns over the gradual drop in the Foreign Direct Investment (FDI) from India. "Since beginning of the history of FDI in Nepal, India used to top the list of FDI countries, however, in the last five or six years, we are witnessing a gradual fall in investment from India," she said.

According to her, although five yearly statistics show gradual increase in FDI commitments, FDI remains fairly dismal, both in terms of commitments and actual implementation. The FDI flow  is far below the need of the country for overall growth of our economy, she stated.

Rana appreciated the amendment made to the Rail Service Agreement which is expected to bring about a huge change in Nepal's international trade.

As per the amendment, rails and wagons under the ownership of Nepal Railway Company can operate up to Kolkata-Haldia from Birgunj and Biratnagar.

The AGM has reelected Rana to the post of NICCI.

President of Federation of Nepalese Chambers of Commerce and Industry, Shekhar Golchha, said that his organisation was going to organise a business summit especially targeting the business and investors from India. It will be realised soon, in collaboration of Confederation of Indian Industries, he informed.

President of Nepal Chamber of Commerce, Rajendra Malla, said there was a need for developing Ayurveda sector in Nepal and enhance the export of herbs and herbal medicines to India. An international-level quarantine lab is needed at Nepal-India border.

Likewise, President of Confederation of Nepalese Industries, Vishnu Agrawal, FDI is still an untapped area of cooperation in Nepal-India relations. However, the FDI flow is not encouraging in recent years despite multiple success stories. 

Published in The Rising Nepal daily on 26 May 2022. 

Nepal, China agree to enhance partnership in post-COVID scenario

Kathmandu, May 25

Nepal and China have agreed, at the 14^th meeting of the Nepal-China Diplomatic Consultation Mechanism, to activate bilateral mechanisms to enhance cooperation and partnership in the aftermath of the COVID-19 pandemic.

They also emphasized the need for timely completion of China-assisted projects, said the Ministry of Foreign Affairs (MoFA) in a statement.

The meeting was held virtually on Wednesday afternoon where Foreign Secretary of Nepal Bharat Raj Paudyal and Assistant Minister of Foreign Affairs of China Wu Jianghao led their respective delegations.

Both sides agreed to promote cooperation in various sectors including trade, transit, connectivity, investment, health, tourism, poverty alleviation, disaster management, education, culture, and people-to-people exchanges, among others.

“On the occasion, the two sides took stock of Nepal-China relations and exchanged views on further promoting bilateral relations and cooperation for mutual benefit,” said the MoFA.

According to the ministry, the two sides underscored the importance of exchange of high-level visits and stressed the need for timely implementation of the agreements and understandings reached between the two countries.

Foreign Secretary Paudyal thanked the Chinese Government for the generous support of life-saving vaccines and medical supplies to Nepal during the difficult time of the COVID-19 pandemic and the northern neighbour’s decision to resume the regular passenger flights between the two countries in Kathmandu-Kunming and Kathmandu-Chengdu sectors.

He also appreciated China for the preparation of the return of Nepali students to China and requested to facilitate the return of Nepali business people and their families to China.

Likewise, Assistant Minister Wu assured the Foreign Secretary of China’s support for the improvement of health infrastructures as well as for the capacity building of medical personnel of Nepal.

According to the MoFA, both sides underlined the need to enhance the level of support for improving the livelihood of people residing in bordering districts in the Northern Himalayan region of Nepal. They also exchanged views on continuing cooperation in various regional and multilateral forums on matters of mutual interests.

Published in The Rising Nepal daily on 26 May 2022. 

'Sustainable tourism key to receive certification'

 Melamchi, Sindhupalchok, May 25

Stakeholders have suggested obtaining sustainability certification in tourism business including community-run homestays and organic resorts.

They emphasised on developing tourism and products in a sustainable way with the certification so that it would support the community in multiple ways and serve to the future requirements as well.

Certification provides strength of the Global Sustainability Tourism Council (GSTC) along with the UNEP, World Tourism Organisation which is internationally recognized and third-party accredited certification of the tourism system.

Federica Riccadonna, International Coordinator of New Vision Nepal, said that 81 per cent of the tourists said that they wanted sustainable travel and tourism, and chose such destinations.

"Training on skills, preservation of heritage, culture and environment, and improvement of services are the foundations of sustainable destination management dimensions," she said in a Sustainable Tourism Workshop organised in Haibung of Melamchi Municipality-3 in Sindhupalchok district.

There is a need to support the COVID-affected tourism businesses and projects to bounce back to the pre-pandemic situation as it was the worst scenario in the last three decades. Local community initiatives and businesses also experienced the worst, and yet, their voice might not reach the policy makers and government, stakeholders said.

According to Riccadonna, if Nepal implements sustainable tourism measures and receives certification, it would be much effective in attracting international tourists.

"It is a new and innovative tool which Nepal doesn't have. It can be a unique selling point for the country," she said.

To acquire the certification about 60 KM trekking routes are developed in Melamchi and Panch Pokhari area, data collection is undertaken and bio-conservation has been given the priority.

Matina and Serena, students from Italy, have conducted a survey of the tourism business and homestays in the area and found that entrepreneurs lack the understanding of sustainability.

According to them, there are problems in homestay management, water supply, waste and waste water management, building materials and construction, lack of financing, and less compliance to legal requirements, as well as lack of proper understanding of the concept of sustainability.

Homestays need to be sensitised about the style of welcoming, and management of timing, resolve communication problems, run promotion campaign of the homestay, hygiene standards, create online presence and municipalities should be roped in to provide training and funding.

Newly elected Mayor of Melamchi Municipality, Aitaman Tamang, maintained that the municipality will forge collaborations with the national and local stakeholders to develop and promote tourism destinations in the area. We also want to streamline the guidelines to maintain standards in homestays, he said.  

He expressed commitment to put additional efforts to develop the area in a sustainable way. Identify and promote tourism, religious and cultural attractions in every ward of the municipality.

Arun Shrestha, Chairman of Prakriti Resort and Organic Farm in Haibung, said that the resort could be a model of sustainable tourism. Established in 2012 at the height of 6,000 feet and expanded in120 ropanis land, Prakriti has environment-friendly structure, houses are built incorporating local culture, and organic farming is practiced.

Kumar Banjara, Chair of Ward 3 of Melamchi Municipality, pointed to the need to create good models for homestays and organic resorts.

"We have to preserve and promote culture of local people like Gurungs and Tamangs. Support from the federal and provincial government should extend additional support to the local bodies and communities to support sustainable tourism development," he said.

Likewise, Deputy Mayor of Melamchi Municipality, Uma Pradhan, said that the area had original products, culture and attractions. "We are planning to accord priority to agriculture and tourism in our local body," the newly elected Deputy said.

Yuba Raj Dulal, former minister of Bagmati Province, said that joint efforts from the governments at the three level is expected to develop and promote local tourism however greater efforts should be put by the local bodies.

Pashupati Nyaupane, an expert of culture from the Tribhuvan University, said that there was a need to conduct joint promotion of homestays and organic resorts and farms across the country

According to him, health and hygiene are fundamental for the sustainable tourism in Nepal and there is a need of standards as well as awareness programme for the same. 

Published in The Rising Nepal daily on 26 May 2022. 

MoFA celebrates Foreign Affairs Service Day, honours the veterans

 Kathmandu, May 24

The Ministry of Foreign Affairs (MoFA) has celebrated the first Foreign Affairs Service Day 2022 on Tuesday.

At a special programme organised at the multipurpose building of the ministry at Tripureshwor in Kathmandu, Minister for Foreign Affairs, Dr. Narayan Khadka honoured the senior officials who served at the ministry in and before 1961.

Dr. Khadka honoured Hari Prasad Pokharel, Yogendra Nath Ojha, Narayan Prasad Rajbhandari (Chittaranjan Nepali), and Narsingh Mansingh Pradhan from the early breed of the professionals in the foreign service.

Likewise, Yadav Kanta Silwal, Gowardhan Bikram Shah, Shiva Ram Sharma and Ganesh Man Shrestha were also facilitated on the occasion.

However, Narayan Prasad Aryal, Bishwo Pradhan and Bindeshwori Malla Shah couldn't make it to the event. Foreign Secretary Bharat Raj Poudyal will make visits to their residences to offer the felicitation, announced the ministry.

The celebration was made to mark the Nepal Foreign Service (Formation and Classification) Rules, 1961. The MoFA said that May 24 will be celebrated every year as the Foreign Service Day in remembrance of the day when the Foreign Service was legally codified in Nepal.

Minister Dr. Khadka said that it was the day to bring back the memories and an opportunity to face the live history.

He said that institutions must be strengthened in a way they could cater to the national interest. "Foreign service is a dynamic concept and we need to continuously refine and redefine its elements, programmes and impacts," he said.

Foreign Secretary Poudyal said that celebration of the day and felicitation of the veterans of the profession would motivate and inspire young professionals to join foreign service as their career.

Meanwhile, FM Dr. Khadka inaugurated the Passport Museum at the multipurpose building following the programme.

Published in The Rising Nepal daily on 25 May 2022. 

Govt unveils policies, programmes

Priority to infrastructure, energy, water supply 

private sector-led industrial development, rapid economic growth-focused

No budget to the projects not included in the project bank

Kathmandu, May 24

The government has accorded high priority to infrastructure, energy and water supply, job creation and good governance.

Presenting the policies and programmes for the upcoming Fiscal Year 2022/23, President Bidya Devi Bhandari at a joint session of the Federal Parliament said on Tuesday that product and enhancement of productivity, access to energy and water, formation of human capital and employment creation and sustainable development with ecological balance are the priorities of the government for next year.

Bringing down the income inequality and the rate of multidimensional poverty, and strengthening federalism are also given top priority in the policy document. Economic policy would be formulated in a way it would bear the risks caused by internal and external reasons.

"Necessary legal provisions would be created to implement the rights provisioned in the Constitution, and all projects other than the national pride, transformative and strategic importance would be transferred to the provinces and local bodies," said President Bhandari. The government also aims at combining the local economy with the national one to create foundations for economic prosperity in the country.

Policies and programmes presented at the parliament is the guidance for the budget of the coming FY 2022/23.

Continuation would be given to the pride projects like Kaligandaki, Koshi and Karnali corridors, while works would be expedited at the Postal Highway and Mid-Hill Highway, and Galchhi-Rasuwagadhi road would be upgraded to two-lane blacktopped road. Likewise, priority would be given to the development and upgradation of the road networks that connect India in the southern border points.

Likewise, in the policies and programmes, the government has included programmes like operation of cargo rail in Biratnagar Dry Port, feasibility study of East-West Electrified Railway, Rasuwagadhi-Kathmandu Railway, and detailed project study of metro-rail in the Kathmandu Valley and development of inland waterways in the Nepali rivers. Similarly, operation of mass transit buses, cable car and ropeways would also be promoted.

 

Investment promotion

The government has also pledged for reforms in policy, law and system to enhance domestic production, construct quality infrastructure for industrialisation, promote investment and create business environment. "A suitable framework for public private partnership would be developed and implemented to support construction of large and strategic infrastructure and industrial development," President Bhandari said.

In the policies and programmes of the next year, commitment is made to enhance private sector’s involvement in industrial infrastructure development. The government will provide facilities like electricity, roads and water in industrial villages, industrial zones and special economic zones while policy would be adopted to promote private sector in the construction, operation and management of infrastructure in these facilities. Special Economic Zone in Bhairahawa will be further expanded.

Likewise, the government has said that priority would be given to the private sector-led industrial development where the former would work to improve business and investment friendly climate, increase investment in infrastructure while the latter will establish productive industries. An integrated programme 'Farm to Industry' would be run to connect the agriculture, forestry and mining sector with the industrial process chain, according to the government.

The policy document also includes export promotion through the reduction in the cost of production of manufacturing and export-oriented industries. The government has also tried to address the private sector demand to provide energy at the rate at which electricity is being exported to India.

 

Result oriented public expenditure

To address the chronic challenge of budget underutilisation, the government has said that it would formulate a special legal instrument to make the public expenditure management result-oriented, increase the mobilisation of development budget and facilitate the implementation of development projects.

"Public Procurement law will be amended to address the problem of conflict in the tender of development projects. Budget will not be allocated to the projects that are not included in the project bank and recommended by the National Planning Commission," said President Bhandari.

She maintained that a plan would be formulated to manage the impact of the country's graduation to the 'developing country' from the Least Developed Country.

The policy and programmes of the government would be oriented to obtain rapid economic growth through the joint efforts of the government and private sector by the mobilisation of financial and monetary instruments, she said.

All kinds of national and public treasuries would be archived. Exploration, processing, production and conservation of minerals, natural gas and petroleum products will be done by geological mapping of Nepal.

Singha Durbar, the Central Secretariat of the government, would be made beautiful, attractive and managed according to the Master Plan. Necessary governmental office building would be constructed in Nawalparasi and Rukum East, the President said.

To prioritise the conservation of the Chure area, big projects would be conducted considering the sensitivity of environment and water resources in Chure.

Federal law related to civil service will be enacted in accordance with the federal structure to motivate the public services and to make the public servants accountable towards their responsibilities.

Nepal's contribution to maintaining world peace will be increased in response to the call of the United Nations.

 “This policies and programmes of Fiscal Year 2022/23 have fully assimilated the aspirations of a prosperous Nepal. The implementation of this programme will increase the production of agriculture, industry and service and result in the overall growth of the economy,” said the President.

She said the government would make easy access of the services like civil protection, social protection, education, health and maintain social justice.

The President said that the successful completion of the local level election has further solidified democracy.

 Prime Minister Sher Bahadur Deuba thanked the President on behalf of the government for presenting the policy document. 

 Published in The Rising Nepal daily on 25 May 2022. 

Global pledge needed for sustainable development: Minister Khadka

Kathmandu, May 23

Minister for Foreign Affairs, Dr. Narayan Khadka, has stressed the need for global commitment, solidarity and urgent actions to fulfill the obligations towards posterity, informed the Embassy of Nepal in Bangkok.

There is a need to focus on accelerated and deliberate actions that promote sustainability, he said in a pre-recorded video message to the 78^th Session of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) on Monday, which coincides with the 75^th anniversary of its establishment.

The FM stated that the path to timely achievement of the Sustainable Development Goals (SDGs) within stipulated time has been challenging for the countries in special situations including the Least Developed Countries due to natural disasters such as climate change, rising commodity and fuel prices, and trade protectionism, among others.

He further added that the negative impact of the pandemic, ongoing global crises, and dearth of financing for development has further deteriorated the situation, the embassy said in the statement.

In his message, FM Dr. Khadka congratulated the UNESCAP on its 75^th Anniversary and acknowledged its contribution in the fields of infrastructure, human development, and environment, among others.

He expressed confidence that the commemorative event will rekindle new aspirations and provide a new direction for regional development and shared prosperity among the members.

Welcoming the ESCAP's "Reclaiming Our Future" report, the minister expressed views that the global community should work together to protect people and the planet from pandemics and disasters, promote trade and investment, enhance digital capacity, and raise resources to realize development goals.

While stating new challenges added to the existing ones for graduation from the LDC category by 2026, he shared some measures introduced by the government of Nepal to maintain a healthy economy.  

He also stressed the need to strengthen regional cooperation and engage in inclusive dialogue on interconnected issues such as managing debt, tax evasion, environmental sustainability, and trade, among others.

The 78^th Session of the UNESCAP is being held on 23-27 May 2022 at the United Nations Conference Centre in Bangkok in hybrid mode. Dr. Dil Bahadur Gurung, Member of National Planning Commission, is leading the Nepali delegation to the session.

 Published in The Rising Nepal daily on 24 May 2022. 

Draupadi Samman conferred on NICCI President Rana

Kathmandu, May 22

President of Nepal-India Chamber of Commerce and Industry (NICCI) Shreejana Rana has been honoured with Draupadi Samman Patra 2022 in New Delhi of India.

Draupadi Dream Trust has honoured Rana, as the President of NICCI, for her contribution in Nepal-India bilateral relation through development and promotion of religious and spiritual tourism in both the nations, the binational chamber said in a statement on Sunday.

The Trust is the institution working in the area of ancient eastern civilization, art, culture, religion and history, and publication of such area for a long time.

Rana has also played an important role in publishing a book and dedicated website on Nepal-India religious/spiritual circuits which cover Buddhist Circuit, Mahabharat Circuit, Ramayan Circuit, Shiva-Shakti Circuit and Sikh Circuit aiming to promote pilgrimage tourism in both the countries.

The honour was conferred on her at a programme in New Delhi by Ajit Doval, Chief Security Advisor to Indian Government on Friday, 20 May, read the statement.

NICCI feels proud at this moment and encouraged to work sincerely in the area of Nepal-India economic and bilateral relations in the coming days.

Nepalese Ambassador to India Dr. Shankar Sharma and Minister (Economic) at the Nepali Embassy, Nita Pokhrel Aryal were also present on the occasion.

Published in The Rising Nepal daily on 23 May 2022. 

Zeya calls on PM Deuba, FM Dr. Khadka

 Kathmandu, May 22

Under Secretary for Civilian Security, Democracy, and Human Rights of the United States of America and its Special Coordinator for Tibetan Issues, Uzra Zeya, called on Prime Minister Sher Bahadur Deuba on Sunday morning and exchanged views on the matters of mutual interests.

"We exchanged views on Nepal-US relations and matters of mutual interests," PM Deuba said in a tweet.

Likewise, Zeya, who is in a three-day visit of Nepal, called on Minister for Foreign Affairs, Dr. Narayan Khadka. According to the ministry, they discussed various matters concerning friendly bilateral ties and cooperation at bilateral and multilateral forums.

Zeya had arrived in Kathmandu on Friday leading a four-member delegation. 2022 marks the 75^th anniversary of the establishment of the bilateral relations between Nepal and the USA, and both the countries are planning to intensify the bilateral exchanges at multiple fronts, said the MoFA.

Her visit to Nepal intended to deepen cooperation on human rights and democratic governments goals, and to advance humanitarian priorities. 

Published in The Rising Nepal daily on 23 May 2022. 

Industrial innovation still remains a far cry in Nepal

Kathmandu, May 21

While the world was under the grip of COVID-19 pandemic and it was putting its efforts to develop vaccines and other medicines to prevent the contagion, Deurali Janta Pharmaceutical (DJPL) in Nepal had begun research for the development of a vaccine against the coronavirus. But the government processes in research and development, and procurement of biochemicals and consulting service from abroad posed so many hurdles that the company abandoned the activity mid-way.

Scientists at the Nepal Academy of Science and Technology (NAST) successfully developed a prototype of oxygen cylinder in May 2021 by using local products. Although the cylinders manufactured by NAST could bear three-time more pressure than it should, it couldn't go for the industrial production yet.

These two incidents hint at the poor status of innovation in the country.

Nepal lacks innovation in all three major sectors of the economy – agriculture, industry and service - while the industry is the one that suffered the most from it. In the last decade after the conclusion of the peace process, the industrial sector growth remained stagnant with about 14 per cent contribution to the economy while service sector expanded by 10 per cent to reach 62 per cent and agriculture sector shrunk by 10 per cent from about 35 per cent. Industrialists say that the sector not only failed in making innovations but also in transferring significant technology that could disrupt the production process.

Likewise, only one patent and 31 designs were registered at the Department of Industry (DoI) in nine months of the current fiscal year 2021/22 while no patent and 23 designs were registered in the previous year. Probably, the registration of only 79 patents in Nepal so far shows the pathetic condition of industrial development and innovation here.

On the contrary, local businessmen have registered the trademarks of some of the global brands in their name and created hurdles for the companies in branding and promotion. Kansai Nerolac Paint is one such case where the original producer is selling its product with a new name 'KNP' while a local trader has the original name.

 

Lack of innovative climate

Former President of Confederation of Nepalese Industries (CNI) and Executive Director of DJPL, Hari Bhakta Sharma, said that the country lacks favourable environment for research and innovation. Laws related to intellectual property rights, land use and industrial enterprise do not incentivise innovation while the governments have been paying lip service to the promotion of research and development, he said.

According to Sharma, Nepal could have competitive advantage in information and communication technology, bio-tech and academia but it needs a policy regime that promotes risk-taking and innovative capacities in the entrepreneurs.

It is not easy to attract foreign innovators by a private sector industry since there is a cumbersome process and reverse taxation on such experts which means they have to pay 13 per cent Value Added Tax and 15 per cent TDS. Industries that are running at a thin margin of profits and struggling to overcome the impacts of earthquake, economic blockade and a pandemic can't afford to expend a large sum to hire them.

Meanwhile, a sad part of it is that trading is safe and manufacturing is risky which is made riskier by policies in Nepal, said Sharma. Industries have to worry about the management of land, human resources, environment and external sector pressure which lacks innovative thinking.

FDI helps technology transfer

However, Director General of the DoI, Ramchandra Tiwari, said that the industries with Foreign Direct Investment (FDI) have supported in the transfer of the latest technology to Nepal. "FDI does not only bring the funds but also the technology," he said.

In the nine months of this fiscal, DoI has received the commitment of Rs. 26.14 billion which is less than the pledge of Rs. 33.42 billion made in the same period of previous year. Specially,  large industries with FDI have major role in innovation and technology transfer but of the total 142 companies with foreign investment, only three are large and three are medium enterprises, according to the DoI.

Industry-academia tie-up

A tie-up between the industry and academia in Nepal is almost non-existent although some efforts are made recently by the NAST and Kathmandu University while Pokhara University has introduced a new course on innovation and entrepreneurship in collaboration with the Ministry of Industry, Commerce and Supplies (MoICS).

While all stakeholders have agreed that innovation centres should be established at the universities and joint efforts should be put into it by the private sector and the government, the public-private cooperation is limited to internship and job placement. But National Science, Technology and Innovation Policy formulated in 2019 pledged to create a conducive environment for the engagement of academic institution and private sector in research, technology development and innovation.

Similarly, cooperation between the DoI and NAST is not rigorous and result oriented, it is limited to discussions and interactions.

As a result, startups are not getting the support they require to flourish in the current business environment in the country. The budget of FY 2021/22 announced free company registration, renewal and tax discount for startups, Rs. 2.5 million loan at 1 per cent interest, non-collateral loan for small and medium enterprises, commercial agriculture, women entrepreneurs and returnee migrant workers, its implementation is not encouraging. Likewise, the challenge fund of Rs. 1 billion set up to help new entrepreneurs has also been largely unused.

The Economist said in a recent report that the enterprises are immensely benefitted from the proximity to brain trusts.

Meanwhile, Chief of the Faculty of Technology at the NAST, Dr. Rabindra Prasad Dhakal, said that there were preliminary discussions between the science body and MoICS for cooperation.

Likewise, NAST is partnering with the Gandaki Province government to establish a bio-char industry in public-private partnership model there. A feasibility study for the production of electric scooter is being conducted in Lumbini province as well.

Similarly, the KU has established an innovation centre for business innovation and incubation and is running an idea studio to support in business management. According to Dr. Biraj Singh Thapa, Associate Professor of Department of Mechanical Engineering at the KU, the university is also running Energize Nepal Project to create industry-university link. It offers funding to the students with innovative business ideas jointly with the industry.

"We offer competitive grants to the students. The programme has also partnered with other universities and institutions like the Tribhuvan University's Institute of Engineering," said Dr. Thapa.

 

 

 

Innovation Centre seeks producers

The National Innovation Centre (NIC) has successfully tested and developed prototype of multiple products including e-vehicles, solar drier, baby warmer, coffee roaster, corn roaster and tea drier. But apart from a couple of innovations like baby warmer and solar drier, many of them are yet to find an industrial producer.

Chairperson of the NIC, Mahabir Pun, said that no industry has approached the NIC for any innovation. "If the research is conducted in Nepal for mechanical innovation, it would reduce the cost and there could be timely maintenance of such facility as well," said Dr. Pun. "But Nepali factories import the technology and machines. It seems they do not have faith in indigenous idea and technology."

According to him, there is no operational tie-up between NIC and NAST although both the institutions are working in the areas of invention and innovation.  He said that the NIC wants to forge collaboration and cooperation with the private sector producers and businesses.

 

Innovation policy

Countries like Singapore have created startup policies and implement scheme to attract domestic and foreign youth with innovative ideas.

The National Science, Technology and Innovation Policy, 2019 was formulated with the aim to develop entrepreneurship and increase production by efficient utilisation of means of production, modernization of agriculture and industrial infrastructure development, development of production-oriented entrepreneurship through the adoption of emerging and cutting-edge technology.

Through this policy the government has assimilated that the country doesn't have environment for the development of scientific research and technology development, cooperation and partnership among the stakeholders including the private sector, legal provision for the operation and management of research institutions, and link between the research by the academia and commercial production.

The lack of innovation and technology transfer has repercussions on industrial growth, reduction of production cost, increment in the productivity and competitiveness of Nepali products in the international markets. According to the private sector stakeholders, the delay in promoting research and innovation to support business and industry will cause further deterioration in industrial production and growth.

Published in The Rising Nepal daily on 22 May 2022. 

US Under Secretary Zeya arrives in Kathmandu

Kathmandu, May 20

Under Secretary for Civilian Security, Democracy, and Human Rights of the United States of America and its Special Coordinator for Tibetan Issues, Uzra Zeya has arrived in Kathmandu for a three-day visit on Friday.

Protocol Officer of the Ministry of Foreign Affairs (MoFA), Manahari Dangal welcomed the visiting guests at the Tribhuvan International Airport. Zeya is leading a four-member delegation.

This year marks the 75^th anniversary of the establishment of the bilateral ties between the USA and Nepal.

 Spokesperson for the MoFA Sewa Lamsal said that both the countries are intensifying bilateral exchanges at multiple fronts to mark the occasion and develop the relations to a newer height.

Speaking at a press briefing at the ministry on Friday, she added that some new bilateral activities are also likely to take off on the occasion.

The US Government said that Zeya's visit to India and Nepal is to deepen cooperation on human rights and democratic governance goals, and to advance humanitarian priorities. "She will also discuss partnering with India and Nepal during this Year of Action for the Summit for Democracy," it said in a statement on May 16.

According to Lamsal, Zeya is scheduled to meet Prime Minister Sher Bahadur, Minister for Foreign Affairs, Dr. Narayan Khadka, and Minister for Home Affairs, Bal Krishna Khand, on Sunday. She will also hold an interaction programme with the Tibetan refugees in Kathmandu on Saturday.

After arriving in Kathmandu, Zeya said in a tweet that she was excited to be in Nepal to discuss the strong partnership between advancing democracy and human rights for all.

Likewise, Ambassador of the USA to Nepal, Randy Berry tweeted that he was thrilled to have Zeya here and show her beautiful Nepal.

Zeya has arrived in Nepal after concluding her four-day visit to India. Her delegation includes USAID's Deputy Assistant Administrator for Asia, Anjali Kaur.

Meanwhile, spokesperson Lamsal said that the recent visit of Indian Prime Minister Narendra Modi to Lumbini, the birthplace of Lord Buddha, has not only strengthened the ties between Nepal and India, but also helped to take the relation to people's level, and promotion of the holy place globally.

According to her, e-passports are being issued from 79 district administration offices and some Nepali missions abroad. The government had launched the service in November last year and so far has issued 214,704 e-passports.

  Published in The Rising Nepal daily on 20 May 2022. 

SEBON suggest govt to attract big company to stock market

Kathmandu, May 19

The Securities Board of Nepal (SEBON) has suggested the Ministry of Finance to make it mandatory for  the companies with a capital of Rs. 1 billion or more and conducting transaction worth Rs. 5 billion to be listed in the share market.

In the suggestions submitted to the MoF, the capital market regulator recommended making it mandatory for the companies with a capital of Rs. 1 billion or more or conducting transaction of more than Rs. 5 billion, companies using natural resources or receiving grants, concessions and tax exemptions from the state to be listed in the stock market by the public issuance of securities.

The board has also suggested structural changes including capital increment at the Nepal Stock Exchange (NEPSE) and CDS and Clearing. According to it, the two companies needed structural changes to make the secondary market of securities more competitive and transparent.

In its 12-point suggestions to the government for the development and expansion of the overall capital market, the SEBON wanted to reduce the transaction cost of an Initial Public Offering (IPO) and maintaining reservation in IPO for the Nepali migrant workers.

It recommended the government to establish SMEs platform to trade small and medium enterprises’ shares and improve the current situation of high volatility in the secondary market price and index of securities.

"In order to encourage long-term investment in the securities market, provision will be made to levy capital gains tax of 6.5 per cent for short term investment of less than 180 days, and 4 per cent for long term investment," read the SEBON suggestion.

Its recommendations to the MoF also include charging no tax on the income earned from specialised investment funds, developing bond market by managing the secondary market transactions of institutional and government bonds.

It said that commodities exchange market and its infrastructure should be brought into operation to help in the commercialisation of the agricultural sector in the country.

SEBON also said that to make the securities market investor-friendly, fees for investing in the primary and secondary markets should be reviewed and permission will be given for the operation of the private equity and venture capital.

Meanwhile, Nepal Investors' Forum has demanded withdrawal of the provision of Rs. 40 million and Rs. 120 million limit set by the Nepal Rastra Bank (NRB) on margin lending. In a four-point demand submitted to the Governor of the NRB, Maha Prasad Adhikari on Thursday, Forum also suggested maintaining the risk-weighted average at 100 per cent instead of the provision of 150 per cent which is announced to be implemented from the beginning of the next fiscal year 2022/23.

A delegation led by its President Tulsiram Dhakal said that the suspension of trading of shares during the merger and acquisition of companies had negatively impacted the investors as well as the country. It recommended  reducing the suspension time to the minimum. 

 Published in The Rising Nepal daily on 20 May 2022. 

MoFA to celebrate Foreign Service Day

Kathmandu, May 19

The Ministry of Foreign Affairs (MoFA) has informed that it is celebrating Nepal Foreign Service Day 2022 on coming Tuesday, May 24.

The celebration is being made to mark the Nepal Foreign Service (Formation and Classification) Rules, 1961, it said in a statement on Thursday.

Senior officials who served at the MoFA in and before 1961 will be honoured at the celebration being held at the multipurpose building of the ministry in Tripureshwor of Kathmandu.

According to the ministry, May 24 will be celebrated every year as the Foreign Service Day in remembrance of the day when the Foreign Service was legally codified in Nepal.

 Published in The Rising Nepal daily on 20 May 2022. 

NLIC to help establish community hospital in Sindhupalchok

Kathmandu, May 19

National Life Insurance Company and One Step Foundation have forged partnership to establish and operate a community hospital in Thokarpa Rural Municipality of Sindhupalchok district.

The hospital will be established and managed under the initiative of the Foundation and the company will provide financial assistance of Rs. 2 million every year for three years to support operation of the hospital.

With the help of the company, a 15-bed community hospital will be established which is expected to serve around 50,000 people living in the area with quality health care.

The two institutions signed an agreement on Thursday for the same. Chief Executive Officer of NLIC Suresh Prasad Khatri and President of the Foundation Dr. Suman Thapa signed the agreement.

Speaking at the agreement signing programme, Khatri said that the company has been active in the field of social responsibility for years by providing financial assistance in the fields of education, health, disaster management and environment protection. He expressed happiness to be the part of the health initiative.

The Foundation is a non-governmental organisation working in the field of health, and has been providing free health services in remote areas of Nepal since 2015.

Working with Nepali volunteers, the foundation, in collaboration with local governments and local partners, has set up health camps, especially in remote areas, to provide health care, it said.

 Published in The Rising Nepal daily on 20 May 2022.