Share market debate: revision in margin lending limit suggested

Lalitpur, June 21

The Security Board of Nepal (SEBON) has said that it was unfortunate that investors had taken to the street.

"This is an untoward situation, nobody wanted it," Chairman of the SEBON, Ramesh Hamal, said at a press conference organised by the capital market regulator on Tuesday evening as a group of investors chanted slogans against it at its entrance in Khumaltar.

Stocks in the United States of America, Japan and India have also gone down significantly but investors have shown patience, said Hamal.

He claimed that the SEBON was all positive about addressing the demands of the investors and has moved ahead with the implementation of various demands put forth by the agitating investors. Thus, they should call off the sit-in protests, let us work and help in making reforms happen, he stated.

Hamal said that investment from the non-resident Nepalis and reservations for migrant Nepali workers in the stock market would be facilitated soon. Likewise, creating the SMEs platform at the Nepal Stock Exchange Limited (NEPSE) is also at the final stage. The NEPSE has formulated the procedure for it and a team currently is at the Indian stock exchange to get the technical know-how of it.

"We are also positive about addressing the confusion created by the halt of share trading for about a year during the merger or acquisition of the companies listed at the NEPSE. It will be resolved by mid-August," he said.

He also informed that process to increase the capital of share brokers, tax discount on capital gain from the shares trading and issuing the Initial Public Offering of the NEPSE are in full swing.

According to him, the market was affected by the liquidity crunch, shrinking investment and economic challenges in the aftermath of the pandemic. However, indicating to the experts, he also questioned whether the current situation was the result of the Nepal Rastra Bank (NRB)'s policy to restrict the margin lending to Rs. 40 million at maximum from a bank or financial institution or Rs. 120 million in total. However, he maintained that the intention behind the policy was not wrong.

The central bank had tightened its policy on margin lending through the monetary policy of the current fiscal year 2021/22.

Hamal said that the Rs. 40/120 million might have crated a sellers' market and affected the buyers' market and suggested that there was a need to amend the policy. There was a fruitful discussion among the Finance Minister Janardan Sharma, Governor of the NRB, Maha Prasad Adhikar and SEBON in terms of making some policy reforms and implementing corrections.

According to him, greater and serious policy coordination among the regulators of the banks, insurance, and securities is needed and such coordination should be made in the leadership of the Ministry of Finance. Such cooperation will help in formulating flawless policies in the days to come.

Meanwhile, Hamal said that social media should be regulated so that it wouldn't be used to influence the stock market. "There is an advantage-seeking tendency among some investors. They are misusing social media to earn profit and push others into the crisis. It should be discouraged," he said.

 Published in The Rising Nepal daily on 16 June 2022. 

Provinces unveil budget estimates worth Rs. 305 billion

Kathmandu, June 15

Provinces have unveiled their annual budget of Rs. 305.4 billion for the upcoming fiscal year 2022/23 according priority to agriculture, infrastructure and tourism development.

The share of recurrent and capital expenditure in the provincial budget is Rs. 103.17 billion and 173.06 billion respectively – about 33.77 per cent and 56.65 per cent.

Bagmati province has unveiled a budget of Rs. 70.94 billion, largest among the provinces, while Karnali has announced the smallest budget of Rs. 32.61 billion for the next fiscal.

Province 1 has unveiled the budget of Rs. 39.74 billion for the next fiscal which is about Rs. 7 billion larger than the current year's budget. Presenting the budget at the Provincial Assembly, Minister for Economic Affairs and Planning, Indra Bahadur Angbo said that he has allocated Rs. 14.16 billion for recurrent, Rs. 15.5 billion for development and Rs. 3.22 billion for fiscal transfer to local bodies. About 46.3 per cent is allocated for capital expenditure.

The province aims at raising Rs. 4.98 billion in internal revenue, receiving Rs. 11.88 billion from revenue sharing, and getting about Rs. 20 billion in grants from the federal government.

It has given priority to agriculture and industrial sector development. Minister Angbo said that a 10-year agricultural strategy would be formulated and programmes would be run accordingly. He has announced special grants to make the province self-reliant in agriculture, develop micro, cottage and small enterprises, establish bamboo facility centre and promote goods produced by using local raw materials.

Likewise, Madhes Province's Economic Affairs Minister Shailendra Prasad Sah unveiled the budget of Rs. 46.88 billion for the next fiscal. He has allocated Rs. 21.76 billion for recurrent and Rs. 25.82 billion for capital expenditure. Share of development allocation in the budget is 53.21 per cent.

The province aims at raising Rs. 4.18 billion from its internal resources, and receiving Rs. 11.61 billion from revenue sharing. It said that about Rs. 19 billion would be received in the form of various grants from the federal government while Rs. 9.66 billion would be saved from the budget of current fiscal.

Province 2 has given priority to agriculture, infrastructure and health sector development. Programmes like provincial agricultural master plan, modernization of agriculture, and irrigation projects have got priority.

Similarly, Bagmati Province has unveiled the largest budget among the provinces amounting Rs. 70.94 billion. Economic Affairs Minister of the Province, Shalik Ram Jamkattel, allocated Rs. 19.41 billion for recurrent, Rs. 41 .56 billion for capital and Rs. 8.35 billion for fiscal transfer. Rs. 2 billion is earmarked for financial management. The share of recurrent, capital, transfer and financial management in the budget is 27 per cent, 58.58 per cent, 11.77 per cent and 2.81 per cent respectively.

The province aims to raise Rs. 26.97 billion from revenue, Rs. 22.44 billion in fiscal transfer from the federal government and hopes to receive Rs. 16.67 billion in other receipts.

Minister Jamkattel has emphasised on sustainable and high economic growth based on internal production. He has also unveiled programmes for  modernisation, mechanisation, and commercialisation of agriculture. Likewise, tourism sector development, ecological conservation, utilisation of forest and natural resources, social protection, and good governance have also got priority. The province also has a plan to forge collaboration with the Nepal Electricity Authority to promote electric vehicles and install charging stations along the highways.

Meanwhile, Gandaki Province has unveiled the budget of Rs. 35.90 billion including Rs. 13.26 billion allocation for recurrent, Rs. 22.14 billion for capital, and Rs. 2.11 billion in fiscal transfers to local units. The share of development budget is about 61.66 per cent.

Presenting the budget of the province, Economic Affairs Minister Ramji Baral said that he would collect about Rs. 16.5 billion from the grants by the federal government, Rs. 9.24 billion from revenue sharing and Rs. 5.9 billion from internal revenue. He said that about Rs. 2.71 billion would be saved from the budget of the current fiscal year.

Gandaki Province has also given priority to agricultural development including increasing the productivity of livestock. Infrastructure like road, irrigation, tourism and walking trails are in priority of the budget. Minster Baral has also given priority to education and medial sector development as well.

Similarly, Economic Affairs Minister of Lumbini Province, Krishna Dhoj Khadka, announced the budget of Rs. 42.63 billion. It has Rs. 13.32 billion as recurrent, Rs. 24.47 billion as capital and Rs. 4.83 billion for fiscal transfers. The size of capital budget is 57.41 per cent.

Source of the budget include Rs. 3.10 billion from internal revenue, Rs. 15.35 billion from revenue sharing, Rs. 18.5 billion in federal grants and Rs. 4 billion from the savings of the current fiscal year.

Minister Khadka said that he has given priority to agriculture, industry, tourism and education sector development as well as training, skill development, social empowerment and deprived sector development.

 Karnali Province announced the smallest budget of all the provinces - Rs. 32.61 billion. Economic Affairs Minister of the province, Binda Man Bista presented the budget with Rs. 9.16 billion allocation for recurrent expenditure, Rs. 19.43 billion for capital and 4.1 billion for fiscal transfer to the local bodies. The size of capital budget is 59.58 per cent.

The province with the smallest size of population plans to collect only Rs. 712 million from internal revenue. It hopes to mobilse Rs. 4.55 billion from savings of the current fiscal, Rs. 9.02 billion from revenue transfer, and Rs. 18 billion in federal grants.

It has given priority to infrastructure development such as roads, irrigation, agriculture, health and education. Minister Bista said that he has given priority to the reduction of multidimensional poverty, creation of investment-friendly environment and provincial development.

Likewise, Sudurpaschim government presented the budget of Rs. 36.74 billion for the next fiscal. Minister for Economic Affairs and Planning, Prakash Bahadur Rawal, said that he has allocated Rs. 12.29 billion for recurrent and Rs. 24.14 billion for capital expenditure.

The province has a plan to collect Rs. 2 billion from revenue mobilisation, and get Rs. 19.5 billion in federal grants. It has given priority to infrastructure development and agricultural growth. It has continued tax discounts in agriculture and tourism sector.

Published in The Rising Nepal daily on 16 June 2022. 

(With inputs from Gokul Parajuli/Biratnagar, Dhirendra Prasad Sah/Dharbendra Jha/Janakpurdham, Rammani Dahal/Hetauda, Chhabi Pandey/Butwal, Nabin Shahi and Muna Hamal/Surkhet and Prakash Bikram Shah/Dhangadhi) 

Housing need of poor to be addressed thru microfinance

 Lalitpur, June 21

Executive Director of the Nepal Rastra Bank (NRB), Dr. Gunakar Bhatta has said that the central bank would be supportive in creating policy to find solutions to address the housing challenges for lower-income groups through microfinance institutions (MFIs).

Speaking at a workshop organized by the Nepal Microfinance Bankers’ Association (NMBA) with the support of Habitat for Humanity Nepal and the Australian Government through its Business Partnerships Platform, he stressed having some impactful policies to eradicate extreme poverty.

Dr. Bhatta urged the MFIs to support increasing local production.

Research conducted by Habitat Nepal in 2020 and 2021 has indicated to the opportunities for housing microfinance products targeted at low-income families.

In this research, it was found that 62 per cent of respondents planned to make home improvements, including new construction or home repairs, in the next two years. Another 26 per cent of the respondents said they had taken out loans for other purposes to invest in home improvement instead.

In addition, positive outcomes were observed after families accessed housing microfinance loans.

Citing Habitat Nepal’s own research at the workshop, Sunil Khanal, Senior Manager for Financial Inclusion, said that 65 per cent of housing microfinance clients reported enjoying greater dignity and respect in their community.

A great majority, about 80 per cent, have realised that they had more time to focus on increasing income. Habitat Nepal has been working with partner housing microfinance institutions since June 2019 to disburse more than 57,000 housing microfinance loans with over 6 billion Nepali rupees (over US$ 48 million) in capital mobilized.

The workshop recommended that the NRB should provide standard guidelines on housing microfinance in its directives to all microfinance institutions in the country.

Likewise, the government should develop a national housing microfinance policy to diversify existing microfinance lending activities, thereby increasing low-income families’ access to affordable housing and ultimately promoting adequate shelter in the country, the workshop concluded.

Speaking on the occasion, President of the NMBA, Prakash Raj Sharma, said that for the last 30 years, the mission of the MFIs was to increase access to finance and support livelihood activities. According to him, the MFIs can play an instrumental role in extending the housing finance at their doorstep.

Jeevan Bikas Laghubitta Bittiya Sanstha Limited and Sahara Nepal Saving and Credit Cooperative Society had received technical assistance for developing an appropriate and affordable housing loan product from Habitat Nepal. Jeevan Bikas highlighted their development of a viable, client-focused home improvement loan product to promote adequate shelter in the country.

Australian Ambassador to Nepal, Felicity Volk, said that long-term sustainable solutions lie in innovative and inclusive business enterprises that generate sustainable commercial returns.

“Low-income families find it difficult to build resilient houses as they lack appropriate and affordable financing options due to the collateral requirements of commercial banks. The MFIs have the networks to reach these communities, but often lack the technical capacities to deliver housing microloans to them. And that’s where a business partnership comes in,” she said.

Christy Lynn Stickney, National Director of Habitat for Humanity, said that there was a lack of finance in housing for the people of lower-income group. Incremental housing could be one area of improvement. 

Published in The Rising Nepal daily on 22 June 2022.  

Ganapati Vanaspati supports financially for child health

Kathmandu, June 15

Ganapati Vanaspati Pvt. Ltd. has provided a financial support of Rs. 11.11 million to the Kathmandu Institute of Child Health, an institution established in the leadership of renowned heart surgeon Dr. Bhagwan Koirala.

At a programme organised recently, chairman of Lucky Group Satish Kumar More handed over a cheque bearing the amount to Dr. Koirala.

Ganapati Vanaspati is a subsidiary of Lucky Group, established by late Muralidhar Agrawal which runs various businesses in Nepal including banking, insurance, infrastructure development and industries.

More said that the company is in operation for the last two and a half decades and has contributed to the economy. Vice chairmen of the group Shrawan Kumar More and Raj Kumar More and other officials were also present at the cheque handover programme. 

Published in The Rising Nepal daily on 16 June 2022.  

Chamber Expo 2022 from today

Kathmandu, June 15

Nepal Chamber Expo 2022 is kicking off from Thursday at Bhrikutimandap in Kathmandu. Prime Minister Sher Bahadur Deuba is scheduled to inaugurate the fifth edition of the trade fair to be organised by Nepal Chamber of Commerce (NCC).

This is the first expo after the COVID-19 pandemic. NCC hopes that the expo will help boost economic activity and promote indigenous products.

The fifth edition of the expo emphasises trade interaction, exchange of import and export information and marketing of Nepali products.

According to the organisers, direct participation of the international business community in the chamber expo would provide the Nepali entrepreneurs an opportunity to observe economic activities taking place in the international arena, use of new technologies and new dimensions of trade management.

The exhibition is expected to give priority to the use of quality goods and to increase public awareness about consumer interest. It is believed that the expo will also help in increasing the export.

The NCC said that domestic and indigenous products as well as agricultural and herbal products, electronics, garments and textiles, leather products, cosmetics, food and dairy products will be exhibited and sold at the fair.

Bangladesh is a partner country in the international fair organised in collaboration with the Ministry of Industry, Commerce and Supplies and Trade and Export Promotion Centre. There will be more than 150 stalls in the fair from Nepal, India, Pakistan, Bangladesh and other countries.

Rajendra Malla, President of NCC, said that the international expo was organised with the participation of various nations with the objective of activating the economy weakened by the COVID-19 pandemic.

According to Malla, the main objective of the international fair is to market Nepali products and create a dynamic economic environment by involving the international business community.

Published in The Rising Nepal daily on 16 June 2022. 

WiFi-Nepal offers 30 MBPS internet at Rs. 333

Kathmandu, June 15

New internet service provider company WiFi-Nepal has launched its service since Wednesday with the announcement of the cheapest internet package in the market.

The company said that it has brought the cheapest internet package in the country with the objective of providing convenient internet access to all Nepalis. It has now started providing 30 and 50 Mbps internet packages.

Customers who subscribe to the annual package will get 30 MBPS internet for Rs. 4,000 (Rs. 333 per MPBS) and 50 MBPS internet for Rs. 5,000 (Rs. 417 per MBPS).

Similarly, a three-month package of 30 MBPS will be available at Rs. 1,100 and a six-month package at Rs. 2,100. Likewise, a three-month package of 50 MBPS will cost Rs. 1,500 and a six-month package Rs. 3,000.

Currently, the services of the company are available in the Kathmandu Valley.

The company claims that both of these packages are the cheapest packages available in Nepal. "When internet charges are high, customers are forced to share and use them," said CEO Ritesh Raj Singh.

According to the company, online booking has been opened for its newly launched packages.

It said that the consumers need to pay only Rs. 1,500 while getting the internet connection for a router in addition to the one-month, three-month, six-month or one-year package fee. “There is no additional charge for connection and installation,” stated the company.

The company currently plans to provide internet only for domestic use. "We have been doing our homework for the last one year to maintain quality at the lower price," said Singh.

Published in The Rising Nepal daily on 16 June 2022. 

Provinces to unveil annual budget today

 Kathmandu, June 14

Provinces in Nepal are gearing up to announce their annual budget for the upcoming fiscal year 2022/23 on Wednesday, on the date set by the Intergovernmental Fiscal Management Act, 2017.

The subnational bodies have almost concluded their preparations for the budget and most of them have raised the estimates of income and expenditure for the coming year that begins on July 17.

According to the primary information obtained by our correspondents in provinces across the country, the subnational bodies have prepared the budget with priorities to agriculture and infrastructure development in line with the federal budget announced a couple of weeks earlier.

Some of the provinces have also informed to announce programmes to implement reforms in public services and facilities. Major source of income for the provinces is the grant from the federal government and share in the revenue.

The federal government has allocated about Rs. 429.8 billion, 24 per cent of the total budget Rs. 1793.83 billion, for the fiscal transfer to the province and local bodies.

Province 1 is increasing the size of the budget by about 15 per cent to make it Rs. 37 billion. It is likely to get Rs. 30 billion from the federal government in various grants and revenue sharing.

Madhes Province has said that it would announce a productive budget without making it distributive. Agriculture, forestry, tourism and industry will be the priority sectors in the budget. Its budget size will also be at par with Province 1.

Bagmati Province is also according priority to agriculture, physical infrastructure and health. The province is increasing the size of budget by Rs. 10 billion compared to the budget of the current fiscal year 2021/22, Rs. 57.77 billion. The province is set to continue the Chief Minister Public Health Programme.

Likewise, Lumbini Province is preparing an estimated budget of Rs. 41 billion with a priority to agriculture, health and education. However, its expenditure is not encouraging in the current fiscal with just 41 per cent mobilisation of Rs. 40.95 billion budget.

Gandaki Province has also accorded priority to public health along with agriculture. It is also set to increase the size of the budget for the next fiscal from current year's Rs. 30.03 billion. The budget is said to include programmes to honour farmers, hire experts, establish a heart disease hospital and the like.

Similarly, Karnali Province said that the size of budget for the next year is likely to go down to Rs. 28 billion, from Rs. 36.5 billion this year. It has mobilised only 30 per cent of its annual budget this year. It is planning to promote innovation in agriculture, establish agricultural inputs company and promote such products.

However, Sudurpaschim Province is likely to announce a budget of Rs. 35 billion which is larger than the budget of current fiscal's Rs. 30.33 billion. It is also planning to give priority to agriculture, tourism, education and health. 

Published in The Rising Nepal daily on 15 June 2022. 

Interest expressed for university collaboration

Kathmandu, June 14

The University of Mumbai (MU) has expressed interest in forging collaborations with Nepali universities and academic institutions.

"An exchange programme was organised with Janamaitri Multiple Campus a couple years ago and currently we are seeking collaborations with the Tribhuvan University and other institutions," Director of Department of Students' Development and University Information Bureau and Foreign Students' Advisor of the MU, Dr. Sunil S. Patil said at an outreach programme organised by the MU in Kathmandu.

He said that they want to enhance our research collaboration, especially in science and technology, with the TU in the future.

Dr. Patil informed that the MU which is one of the oldest universities in India has been offering courses that are the choice of Nepali students, and maintained that the Indian educational institutions could be alternative to the students of the third countries.

The university has 56 departments, 12 special centres, 781 affiliated colleges and 2 main campuses. 

Published in The Rising Nepal daily on 15 June 2022. 

Govt formulates first-ever labour plan for five years

Kathmandu, June 12

The Ministry of Labour, Employment and Social Security has prepared a five-year strategic plan for the first time.

The strategic plan has six pillars: internal employment promotion, foreign employment management, labour relations and occupational safety, vocational skills development training, contribution-based social security, good governance promotion and labour diplomacy.

The five-year strategic plan has been prepared covering various activities to be carried out in the next five fiscal years (2022/23 to 2027/28, said the ministry in a statement on Sunday.

Minister for Labour, Employment and Social Security, Krishna Kumar Shrestha, said that the plan has been prepared to guide the activities to be carried out by the ministry and to make the work fruitful.

According to him, the strategic plan also assesses various activities to be carried out in the next five fiscal years, the cost required for it and expected achievement to be made from it. He said that the strategy has been finalized by incorporating the suggestions received after discussions with various stakeholders.

Towards internal employment promotion, it is mentioned that minimum employment will be guaranteed, productive employment will be promoted and expanded and integrated employment services will be provided.

Similarly, towards foreign employment management, the plan aims to make foreign employment safe, systematic and dignified, to maximise foreign employment by identifying skilled employment opportunities in the international labour market.

Increasing labour productivity, maintaining good industrial labour relations, making maximum use of labour force by making labour practices dignified, implementing child labour prevention master plan, occupational health and safety are also the priorities  of the plan.

Similarly, promoting workplace risk reduction, strengthening and capacity building of bodies working in the field of labour administration, promoting business and human rights, formalizing informal labour, and balancing the demand and supply of skilled and semi-skilled manpower as required by the national labour market are other components  of the plan.

In addition, vocational skills development training is said to balance the demand and supply of manpower competing in the international labour market.

The plan also aims to promote good governance and policy and legal reform towards labour diplomacy, make internal employment management effective, make foreign employment administration simple, accessible and technology-friendly, make internal labour administration work fast, quick and effective, maintain good financial and administrative governance and to make labour diplomacy effective.

The strategic plan includes plans to expanding productive employment opportunities in the country, reducing unemployment, improving vocational and skill development training to produce labour force as per national and international labour market demand, maintaining good industrial labour relations, and ending all forms of labour exploitation including child labour, and integrated social security.

The policy aims to include the general public under the scope of contribution-based social security, make foreign employment safe, dignified and systematic, and integrate and manage information systems related to labour and foreign employment.

Published in The Rising Nepal daily on 13 June 2022. 

Cooperatives organise citizens: Khand

Kathmandu, June 12

Minister for Home Affairs Bal Krishna Khand has said that the cooperative sector has a role to play in mobilising resources from savings. He said that the cooperative sector has played an important role in organising the citizens, increasing their capacity, making them owners of property and establishing access to resources.

Inaugurating the 4^th SACOS Summit organised by Nepal Federation of Savings and Credit Cooperative Union Ltd. (NEFSCUN) and co-organised by the Ministry of Land Management, Cooperatives and Poverty Alleviation on Sunday, Minister Khand said that cooperatives have a role in changing the lives of citizens.

He urged all the cooperative workers to increase the national production by investing the savings of the cooperative sector in the productive sector. "Cooperatives have done what the state could not do. Cooperatives have also played a role in empowering sisters and mothers in the remote areas and helping improve the home and society," he said.

He also clarified that the government is positive towards the cooperative movement

Speaking on the occasion, Registrar of the Department of Cooperatives Rudra Prasad Pandit said that the complaints of wrongdoings committed by the cooperatives have been increasing recently. He urged the cooperatives not to invest in unproductive sectors by charging higher interest rates and charging higher service fees.

He also said that it would not be good for the cooperatives to consider themselves as banks and practice like banks. "One co-operative should not defame all co-operatives," he said. Pandit urged to implement the 35-point integrated directive recently issued by the Department of Cooperatives.

He also opined that the cooperative movement and the government should move forward in coordination.

Stating that data is needed to formulate policies and plans of cooperatives, he urged all cooperatives to be involved in COPOMIS. Out of 30,000 cooperatives, the department has received the details of only 26 per cent of them.

Likewise, President of the National Cooperatives Federation of Nepal Minraj Kadel said that the government has increased the income tax rate of cooperatives. He drew the attention of the Home Minister to the issue. He urged the government to maintain the old rate of income tax. He also demanded a separate savings and loan act for the regulation of savings and credit cooperatives.

NEFSCUN chairman Paritosh Poudyal pledged to address the issues of financial viability, stability and well-being created by the COVID-19 epidemic. He also drew the attention of Minister Khand and other stakeholders to the need to make some of its legal provisions campaign-friendly even though the stabilisation fund for savings and loan cooperatives came into operation after a long debate.

Poudyal opined that there is a need for a separate SACOS Act along with the Credit Information Centre and the Debt Recovery Tribunal.

The 4th SACOS Summit has started in Kathmandu from today. The two-day event is attended by about 700 savings and loan cooperative workers from across the country.

The seminar will be conducted in 10 sessions with two groupings and eight breakouts. 

Published in The Rising Nepal daily on 13 June 2022. 

‘Nepal has to move ahead with BRI projects’

Lalitpur, June 12

Experts have stressed on developing a robust think tank system in the country to support and guide the government in foreign policy matters.

Speaking at a dialogue on 'BRI: International experience and Nepal' organised by News Society Nepal on Saturday, they said that think tanks may offer pragmatic solutions while a country is in a diplomatic fix like the Millennium Challenge Corporation's Nepal Compact project or infrastructure development under Belt and Road Initiative.

However, Security Expert Geja Sharma Wagle said that it was difficult to operate a think tank in Nepal due to the scarcity of funds. "Government doesn't promote think tanks while foreign donors have their own interests," he said.

Wagle said that it was unfortunate that Nepalis are in the wrong discourse in labeling the affairs with China and the United States of America as BRI and MCC respectively. "They are just projects while our relations are multidimensional," he said.

He also stated that Nepal had an obligation to move ahead with the BRI projects as it had signed the agreement. But he suggested remaining aloof from the strategic rivalry between China and India.

Diplomatic historian of Sri Lanka, George IH Cooke, said that independent think tanks could be instrumental in leading the country on better path in foreign policy and affairs.

Stating that there are some motives behind every international support, he suggested to know them before accepting the development assistance. Giving example of Sri Lanka which is borrowing to repay its loan, Cooke said that a country should assess its capacity to repay the loan obtained to build an infrastructure project.

"Grants are hard to find these days, everyone is offering loan so caution should be taken," he said,

Bishwas Baral, Chief Editor of The Annapurna Express, said that military engagement in Nepal might cause Nepal to lose its decision power. "This is the risk," he noted.

Ajay Bhadra Khanal, Chief Editor of Ukaalo.com, said corruption and bad governance are the major challenges in Nepal, not projects like BRI.

Published in The Rising Nepal daily on 13 June 2022. 

‘Financing is not a problem for LDC graduates’

Kathmandu, June 10

United Nations Assistant Secretary General, Kanni Wignaraja, has said that finding financing is not a problem for a country that graduates from the Least Developed Country (LDC) and it will continue to flow in.

Speaking at a discussion on 'LDC graduation and SDGs financing' organised by the United Nations Development Programme (UNDP) Nepal on Friday, she said that in the post LDC context, financing is in fact not a problem but the graduated country should maintain standards in terms of labour law, social and environmental context.

Wignaraja maintained that LDC graduation is a matter of pride and there is more to gain than to lose. According to her, Nepal should also explore innovative financing instruments like climate finance.

Dr.  Yuba Raj Khadiwada, former Finance Minister and former Ambassador of Nepal to the United States of America, said that the country should involve the private sector in social security programmes.

Dr. Khatiwada suggested running the programmes like health insurance through private sector companies and subsidising the premium of those who can't pay it.

Likewise, Sushil Bhatta, Chief Executive Officer of Investment Board of Nepal, said that the board has given priority to the development of infrastructure in the areas of energy, tourism and industry.  

"We have developed a project pipeline with project registration, development, operation and exit. Our priority is to showcase Nepal as an investment destination and offer bankable projects in priority areas," he said.

According to Bhatta, the one-door investment agency has prepared projects in public private partnership with most of the risks borne by the developer while the processing and clearances are facilitated by the Office of the IBN.

He also expressed plan to implement the policy of blended finance. "We can rope in the philanthropic sector in some of the large infrastructure development," he said.

He also maintained that the Department of Industry should be given more importance since they handle a large number of investors, projects and activities.

Ambica Shrestha, owner of Dwarika Hotel, said that the government and private sector agencies should help enhance women's access to finance. "Most of the women entrepreneurs are small. A majority of them are on the outskirts, don't have quality education and poor access to finance," she said and added that they need technical support as well.

Similarly, Rita Simha, Chair of Women Entrepreneurship Development Committee at the Federation of Nepalese Chambers of Commerce and Industry, said that access to technology and capacity to use the technology should be the major concerns.

Experts stressed on efficient and strong coordination among the various governments and inclusion of women at policy level.

They suggested the government, civil servant and political leaders to decentralise their mindset first in order to strengthen the federalism.

Director General of FNCCI, Gokarna Awasthi, said that after the graduation, Nepali products might lose the market in Europe and elsewhere. Hence, there is a need to boost competitiveness in business and industry for which the private sector also wants support from the government.

We want private sector-led strategy for LDC graduation, he said.  

Economist and trade expert, Dr. Posh Raj Pandey, said that upgrading from the LDC means losing support in trade, development cooperation and policy space.

He warned that the public policy will be captured by the private interest, if the latter funded the candidates in elections and other political campaigns. 

Published in The Rising Nepal daily on 11 June 2022. 

FM Sharma defends budget

Kathmandu, June 10

Finance Minister Janardan Sharma Prabhakar has met industrialists and businessmen of eastern Nepal.

During the meeting held at the Ministry of Finance at Singha Durbar, representatives of the Morang Industry Association, Morang Merchants' Association and Confederation of Nepalese Industries (CNI) from Province No. 1 complained about the impact of the budget of upcoming the Fiscal Year 2022/23 on the wire, edible oil and sanitary pad industries.

In response, FM Sharma said that the budget has tried to promote economic activities by expanding industrialisation within the country by giving high priority to indigenous industries. "The aim of the budget is not to create trouble for the business community anywhere," he said. Since the budget has been brought after discussions with all stakeholders, an effort has been made to include the demand of all concerned.

Minister Sharma maintained that a large customs exemption has been provided for the import of sanitary pads to provide relief to the common women and if such exemption has caused any problem to the indigenous industries, he is ready to find a solution. He said that the budget has addressed those who import crude oil and run industries and create employment in the country.

"The budget is for the businessmen. We have made various arrangements in the budget to make the domestic industries better," said Finance Minister Sharma.

During the discussion, Nabin Rijal, President of Morang Industry Association, gave a short presentation on the impact of the budget on the wire, ghee and sanitary pad industries. He called for creating an environment conducive to self-determination when it comes to government policy. 

Published in The Rising Nepal daily on 11 June 2022. 

Govt forms committee to study capital market challenges

 Kathmandu, June 8: 

The government has formed a committee to study the current situation of the capital market in the country.

Finance Minister Janardan Sharma Prabhakar informed on Wednesday at the 30th Anniversary programme of the Securities Board of Nepal (SEBON) that a four-member suggestion committee is formed with the participation of the Ministry of Finance, Nepal Rastra Bank and SEBON to solve various problems witnessed in the capital market and submit suggestions. 

After the discussion held at the ministry on Wednesday morning, a committee has been formed under the leadership of the Executive Director of the SEBON, and comprises of one representative each from the MoF, and NRB and one representative of SEBON as the member secretary. 

The committee has a mandate to hold dialogue and discussions with all the stakeholders of the capital market. It will help in resolving the issues of the capital market and formulating the monetary policy for the upcoming fiscal year 2022/23. 

Addressing the programme, FM Sharma recalled that in the budget of the coming fiscal year 2022/23, he had given priority to the programmes that will make the capital market stronger. 

Articles 329, 330, 331 and 332 of the forthcoming budget speech carry the issues of the capital market's reform, regulation and supervision.

The budget has provisions to make the secondary market more competitive, expand and diversify it in order to minimise risks and protect investors' interest. 

FM Sharma, in the budget, has said to develop a bond market by managing the secondary market of the government and institutional bonds, operationalize the commodity market, and license private equity and venture capital companies. 

Likewise, it has announced to create legal provisions to invite investment from non-resident Nepali people, and reserve 10 per cent shares of each Initial Public Offering (IPO) for Nepali migrant workers in foreign land. 

Similarly, a pledge has also been made to force the companies with  a capital of Rs. 1 billion or more or make transactions of more than Rs. 5 billion, use natural resources, receive subsidy, concession or tax discount from the state to issue the IPO. 

He said that the government was committed to protect the interests of investors by continuously improving the capital market. He also directed the regulatory bodies to increase the knowledge of the investors by disseminating information regularly about the capital market. 

"We need to have knowledge about capital markets and financial literacy. We have to mobilize manpower for training. Now it is not enough. There is a lack of outreach to new and small investors," he said. 

He stressed on the need to solve the problems of small, medium and large investors by coordinating with the regulatory bodies of the 

capital market, making the share trading effective by using new technology and operating the market without allowing the investors to complain.

Speaking on the occasion, Chairman of the SEBON, Ramesh Hamal, stressed on the need for an effective coordination of the capital market regulator with all the regulatory agencies of the financial sector. He sought the support of the MoF in resolving the issues in the market and implement reforms. 

He informed that the board has initiated a Merit-Based Approval System for the securities registration and licenses. "Within four months, SME Platform will come into operation at the Nepal Stock Exchange Limited, and the provision to reserve 10 per cent of the IPO for the migrant workers will be implemented," said Hamal. 

According to him, the share market witnessed a continuous downfall due to the international conflict, increase in the price of crude oil, liquidity crisis in the country and hike in interest rate, and inflation. 

"SEBON is aware of the problems the investors are facing and we are committed to resolve them," he said while maintaining that there is a need for the review of limit on margin lending and boost the confidence of investors. 

According to Hamal, the SEBON soon will develop securities instrument for investment diversification in the capital market. He said that Automated Electronic Auction System would be prepared in the line of the international practice to attract real sector companies to the stock market. 

Published in The Rising Nepal daily on 9 June 2022. 

Naubise-Nagdhunga Tunnel achieves over 50 per cent progress

 Kathmandu, Jun 9

The Naubise-Nagdhunga tunnel has achieved more than 50 per cent progress.

The Nagdhunga Tunnel Construction Project under the Department of Roads informed that about 2,901 metres tunnel is opened of the total target of 5,499 metres, which makes the progress of about 53 per cent.

According to the project, construction of about 1,283m of the 2,688m main tunnel is dug. Approximately 660m is dug from Kathmandu side and 623m from Dhading side.

Likewise, 1444m escape tunnel - 838m from Kathmandu side and 606m from Dhading, Sisne Khola side – is dug.

The project has so far achieved 37 per cent overall physical progress and 45.50 per cent financial progress.

Meanwhile, 126 meters working audit has been constructed at Dhading side. So far, 48 meters of cross passage has been constructed.

The total length of the tunnel is 2.69 KM, and it will have openings at Tutipakha of Chandragiri Municipality-1in Kathmandu and Sisnekhola of Dhunibensi Municipality in Dhading.

The tunnel will have two main lanes, one side lane which will be used to part vehicles if they run out of order.

Of the total 5,499 meters of tunnels to be dug under the project, 2,598 meters of tunnels are yet to be dug. A cross passage connecting the main tunnel and the escape tunnel has been constructed at every 300 meters of the tunnel. Up to seven cross passages will be constructed at every 300 meters inside the tunnel, informed the project on Thursday.

The national pride project should be completed by the first week of April 2023 however, the deadline is extended by 86 days due to COVID-19 pandemic.

The project said that it has completed the construction of all four box culvert, one overpass and three bridge while two of the three underpasses are completed. the

Japanese company Hazama Ando Corporation is constructing the tunnel. The company accept the contract with a plan to complete the 2.69-km long double-lane road tunnel within 42 months from the project commencement date.

 In 2016, the Japan International Cooperation Agency (JICA) had agreed to provide Rs. 17 billion loan to Nepal with 0.01 per cent interest for 40 years for the project. The government will bear Rs. 6.3 billion for land acquisition and other administrative work. 

 The detail design of the project was completed in April 2018. 

Published in The Rising Nepal daily on 10 June 2022. 

Nepal should shed off ‘small nation’ syndrome: Prof. Subedi

 Kathmandu, June 7:  

Professor Surya P. Subedi suggested Nepal to focus on a few areas in which it has capacity to deliver. 

Delivering a lecture on ‘Foreign Policy of Nepal: Past, Present and Future’ in the first edition of the Professor Yadu Nath Khanal Lecture Series, organised by the Ministry of Foreign Affairs (MoFA) on Tuesday in Kathmandu, Prof. Subedi suggested resorting to diplomacy for development, attracting Foreign Direct Investment and establishing international Himalayan and legal centre in the country.  

Stating that the country has now some sort of political stability and stands for a new life, Prof. Subedi suggested that the foreign policy of Nepal should be designed to maintain peace for the people in the country. It should benefit from globalisation and international treaties. 

Attracting, managing and retaining foreign investment are key to a country’s economic growth and development. “Attracting foreign investment is not the goal but a mean to reach a goal of creating infrastructure and stimulate economy, he said. 

Prof. Subedi also recommended to include provisions of technology transfer, use of local raw materials and investment of certain profit in the country, protection of environment and respect to the human rights in the bilateral treaties. According to him, international agreements and treaties should be reviewed and reformed periodically since a decade old Bilateral Investment Promotion and Protection (BIPPA) with India has already become an outdated instrument. 

Another suggestion was to develop Nepal as an international financial services centre along the lines of Switzerland and Singapore. With a traditional image of a neutral country, Nepal could be an attractive place for people to safeguard their savings. However, it demands better regulations, said Prof. Subedi. 

Likewise, Nepal could largely benefit from the development of its infrastructure to present it as a transit between the two large economies: India and China. “Developing ports and airports are fundamental to it. Connecting Kathmandu with Tibet is exciting and visionary, it could be a game changer in this part of the world,” he said. 

Prof. Subedi, who is a scholar on international legal systems, suggested establishing Himalayan Peace Studies and a centre of international law in Nepal. 

According to him, the former can be a vehicle to promote peace in the region while the latter would help guide the country to promote ‘national interest’ at the international level. “International laws are not in favour of developing nation so Nepal should collaborate with other countries like it to make some favourable changes in them,” he said. 

Likewise, he recommended to move towards a permanent policy of ‘neutrality’ while maintaining that Nepal should promote its national interest first and create strategic balance. It is important for the good of the entire Hidu-Kush Himalayan region stretching from Myanmar to Pakistan. 

“A unilateral declaration could make Nepal a ‘permanent neutral’ country. Then it can attract international attention and try to acquire international recognisition for the same,” he said.  

The government is also suggested to seek meaningful representation of Nepal in international organisations. Despite its long-time contribution to the UN and other global platforms, Nepal has remained a low-profile nation and its impacts have been peripheral. There has never been representation of Nepal in the UN international law agency, said Prof. Subedi. 

He stressed to adhere to three Cs  for Nepal’s sound foreign policy: Continuity, consistency and credibility.  Similarly, he said that amount of international attention to this continent and region will continuously increase in the days to come and it will impact Nepal, therefore, the country must be aware of the ramifications of the changing international dimensions. 

Nepal has to be ready to deal with the challenges and benefit from opportunities, he stated.  

“There are ever growing attraction to the east as the teachings of Gautam Buddha have become global phenomena, hence Nepal has a lot to contribute in this regard. Nepal must shed off ‘small nation’ syndrome,” he said. 

Speaking on the occasion, Minister for Foreign Affairs, Dr. Narayan Khadka, highlighted the initiatives taken by the government to promote national interest at the international level. 

“Today’s foreign policy is not limited to bilateral and multilateral institutional arrangement alone but also to the issues like financial crisis, migrant and refugee crisis, cyber security, climate change and terrorism,” he said. The MoFA has initiated the lecture series on the domestic and global trends in foreign policies and diplomacy.  

Published in The Rising Nepal daily on 8 June 2022. 

Nabil Bank to offer its toilets to public for free

Kathmandu, Jun 8

Nabil Bank is set to offer its toilets at designated branches in Kathmandu Metropolitan City to the public for free.

As per an agreement signed between the bank and the KMC, the public will now be able to use the toilets of 18 branches of the bank within the metropolis free of cost.

The bank has expressed its solidarity to call of the KMC to extend the access of public to the toilets as per the decision of the Municipal Executive last week.

The metropolis will put an information board at the concerned branches of the bank indicating that the public can use them.

The bank will clean the public toilets and arrange the necessary items under its social responsibility. In addition, regular maintenance, care and sanitation of toilets, water management and drainage system will be looked after by it for a period of five years.

Chief Executive Officer of the bank, Anil Keshari Shah, said that the bank will also cooperate in waste management in Kathmandu in line with the concept of sustainable banking.

The metropolis will monitor and evaluate the toilets every four months. The agreement will help streamline and manage public toilet services in the metropolis, said Nurnidhi Neupane, Head of the Public-Private Partnership unit at the KMC.

Published in The Rising Nepal daily on 9 June 2022. 

NBA, Fintelekt to collaborate on anti-money laundering

Kathmandu, June 8

Nepal Bankers’ Association (NBA), an organisation of class 'A' commercial banks, has signed a Memorandum of Understanding with Fintelekt Advisory Services, to collaborate on anti-money laundering initiatives.

Fintelekt is a global specialist in Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Financial Crime Compliance (FCC).

The NBA said in a statement that the banking industry, being the gatekeeper to the country’s financial system, is bound under the Assets (Money) Laundering Prevention Act (2008) to identify and report suspicious transactions to the Financial Information Unit of Nepal.

"Money laundering and financial crimes have grown significantly since the start of the Covid-19 pandemic, making it an especially critical time for bankers to be vigilant and aware of various AML risks that they are dealing with," read the statement.  

The MOU was signed by Anil Kumar Upadhyay, President of NBA and Shirish Pathak, Managing Director of Fintelekt. They formalised a collaboration that will facilitate AML/CFT webinars, workshops and executive briefing sessions for NBA member banks.

The two organisations will also conduct research studies to aid policy decisions within banks and to provide feedback to regulators on various aspects within AML/CFT.

Fintelekt will also provide its strategic advisory services to enable banks to enhance their AML/CFT governance frameworks, said NBA.

“Fintelekt is capable of making a significant impact through its high-quality knowledge resources and qualified global advisors towards helping the banking industry in Nepal to more effectively and efficiently combat money laundering and terrorism financing,” said Pathak.

“The collaboration with Fintelekt is very much in line with NBA’s objectives of enhancing the knowledge, skill, efficiency and productivity of employees in the banking sector, particularly in this important area of AML and CFT,” said Upadhyay.

According to the statement, the two organisations will soon draw out a plan of action for the coming months and help build a stronger compliance regime in Nepal.

Published in The Rising Nepal daily on 9 June 2022. 

Switzerland to support reintegration of returnee migrants

Kathmandu, Jun 8

Nepal and Switzerland have signed an agreement for the implementation of the project 'Reintegration of returnee migrant workers (Remi)' to utilise 6.8 million Swiss Franc (about Rs. 861.3 million).

According to the Ministry of Finance (MoF), the objective of the project is to help workers returning from foreign employment reestablish themselves in Nepal and actively participate in social, cultural, economic, and political life.

It aims at strengthening their capacity to define their plan of reintegration and utilization of knowledge, skills, capital, know-how, and experiences achieved through employment abroad.

The ministry said that the project would be implemented in 20 local levels in two provinces, Province 1 and Madhes, for four years starting from July 2022. The amount of assistance will be recorded in the Red Book of the government and implemented at the local level.

The Ministry of Finance (MOF) and the Embassy of Switzerland in Kathmandu signed an agreement for the implementation of the project.

Ishwori Prasad Aryal, Joint Secretary and Head of International Economic Cooperation Coordination Division (IECCD) at the MoF, and Silvana Hogg, Chargée d’affaires ad interim, at the Embassy of Switzerland, signed and exchanged the agreement on behalf of their respective governments. 

Aryal outlined that the implementation of the project is crucial for reestablishing the returnee migrants into the society and defining their plan of reintegration into social, political, and economic life.

"It also helps to utilize the knowledge, capital, know-how, and experience achieved through foreign employment in Nepal’s socio-economic development," he said.

Similarly, Hogg noted that there is a huge potential to link migration with development.

According to him, Switzerland has gathered rich experiences in the field of migration in Nepal through its decade-long engagement in this sector, and it is committed to supporting Nepal in implementing its policies and plans to benefit migrant workers.

The ReMi project will work with different spheres of government, private actors, networks, and migrant workers to increase the social and economic benefit for returnee migrant workers.  

Published in The Rising Nepal daily on 9 June 2022. 

India builds modern lab at Raxaul to support Nepal’ export

Kathmandu, June 5

India has built a modern National Food Laboratory (NFL) at Raxaul of Bihar to support swift testing of goods being exported from Nepal. 

Minister of Health and Family Welfare, Government of India, Dr. Mansukh Mandaviya inaugurated the lab amidst a programme on Sunday. Minister for Agriculture and Livestock Development, Government of Nepal, Mahendra Rai Yadav was invited as the guest to the inaugural programme.

The NFL at Raxaul, established by Food Safety and Standards Authority of India (FSSAI), is a modern facility equipped with advanced facilities and infrastructure for testing of food samples entering India, Embassy of India in Kathmandu said in a statement.

The lab will support enhanced bilateral trade between India and Nepal by reducing the time taken for testing samples of food and agricultural exports of the latter which currently need to be sent to New Delhi or Kolkata for testing.

As the testing process would delay the clearance of the goods being exported, Nepali exporters, especially those trading in agricultural and perishable goods, are facing difficulties.

“The creation of an upgraded laboratory at Raxaul was a longstanding request of Nepal’s exporters which now stands fulfilled. The NFL is yet another reflection of India’s commitment to improve connectivity, trade and border infrastructure with Nepal as part of its ‘Neighbourhood First’ policy," said the embassy. 

Published in The Rising Nepal daily on 6 June 2022.