In two years, MFIs come down to 65

Kathmandu, Sept. 29

While the number of microfinance companies has gone down significantly to 65 from 84 in the past two years due to mergers and acquisitions, their branches have increased by 1,116 over the same period. Of the 65 microfinance institutions (MFIs), four are wholesale lenders and 61 mobilise the retail loans.

There were 3,946 branches of MFIs by the end of the fiscal year 2019/20 and it has reached 5,062 by the end of the last fiscal 2021/22, according to a recent ‘Situation of microfinance institutions’ report of the Nepal Rastra Bank (NRB). They have their presence in all 77 districts in the country.

The number of MFI’s branches has gone up by 9.54 per cent (from 4,621 to 5,062) by the end of the last fiscal compared to the previous year. According to the report, there are 429,000 microfinance centres and 1.35 million groups across the country. There were about 311,000 centres and 1.04 million groups two years ago. 

Province-wise, Lumbini has the highest number of branches and Karnali the lowest – 1,160 and 230 respectively. The central bank has noted that the Karnali has the poor access to the financial services extended by the microfinance companies. This means Lumbini has 23 per cent of the branches of the microfinance while Karnali has just 4 per cent.

Likewise, the number of microfinance members has increased by 12.87 per cent – from 5.19 million to 5.86 million – in the last fiscal compared to the previous year 2020/21. Likewise, there are 3.30 million creditors of microfinance companies. These class ‘D’ sector companies licensed by the central bank have created employment for 23,303 so far.

The NRB has found the capital fund of the microfinance satisfactory. By the end of the last fiscal, this sector has 11.87 per cent primary capital and 13 per cent capital fund, up by 21.64 per cent and 20.35 per cent respectively.

Meanwhile, retail lending MFIs have increased their savings and lending amount. They have collected Rs. 159.02 billion in savings and Rs. 186.21 billion from borrowing. The savings and borrowings were Rs. 106.15 billion and 107.75 billion respectively two years ago. 

However, the growth in the collection of financial resources has not gone up significantly due to the shrinking liquidity situation.

The central bank has found that the investment from the microfinance banks has decreased. By mid-July 2022, the total investment from them has reached Rs. 6.10 billion which is 58.57 per cent less than the previous year when the size of investment was Rs. 14.71 billion and by the end of the FY 2019/20, it was Rs. 10.19 billion. 

Their areas of investment are government bonds, shares and debentures, fixed deposits and others. Their investment in shares and fixed deposits have decreased during the review period. 

Published in The Rising Nepal daily on 30 September 2022.

Trudeau wraps up Nepal visit

Kathmandu, Sept. 29

The United States’ Acting Assistant Secretary for Global Public Affairs, Elizabeth Kennedy Trudeau, wrapped up her visit to Nepal on Thursday.

According to the Embassy of the USA in Kathmandu, during her short visit, she participated in a discussion on the role of media and civil society in democracy.

On the occasion, she observed the restoration work of various heritage areas that were damaged at different times and revitalised with the help of the American Ambassador's Cultural Conservation Fund. She interacted with the experts, technicians, artistes and historians.

She also met with minority group activists, media and embassy exchange programme alumni as well.

Trudeau had arrived in Kathmandu on Wednesday. According to the US Department of State, she is on a visit to Asian countries – including United Arab Emirates, Uzbekistan and Kyrgyz republic – from September 28 to October 9, 2022.

Published in The Rising Nepal daily on 30 September 2022.

Green trade financing deal signed

Kathmandu, Sept. 28

International Finance Corporation (IFC), a member of the World Bank Group, is extending an unfunded short-term facility under the Global Trade Finance Programme (GTFP) to Global IME Bank, with a carve out allocated towards climate smart trade finance.

This is the first IFC green trade finance line globally.

Chief Executive Officer of Global IME Bank, Ratna Raj Bajracharya, and Regional Manager Financial Institutions Group South Asia of the IFC, Joon Young Park, singed on the document.

GTFP is IFC’s response to the shortage of trade finance limits in developing economies such as Nepal and the project will support Global IME Bank in addressing the demand and supply gap for its growing trade business, the bank said in a statement on Wednesday.

According to it, inclusion of ‘green’ component in this GTFP is a strong value proposition for the Bank to do climate trade business responding to the need of the hour. 

GIBL said that the GTFP line is expected to improve the access to Trade Finance for the bank and its trade finance customers.

Likewise, IFC anticipates that GTFP improves overall market integration by maintaining and expanding trade finance, financial linkages and trade across multiple markets through strengthening bilateral correspondent banking connections and serving as an enabling platform to make new connections between local and international banks and their customers.

Speaking on the occasion, Chairman of GIBL, Chandra Prasad Dhakal, said that the agreement would be a roadmap for climate smart trade financing in Nepal.

“This IFC GTFP line will allow the bank to connect with more global confirming banks with better capacity which will help the Bank process more transaction for its clients in different geographies.” said Bajracharya. He said that this fits into the bank’s strategic agenda as it has a climate component to it.

"This will help the bank better address the growing demand for trade finance in Nepal," said Babacar S. Faye, IFC's Resident Representative in Nepal. “While responding to Nepal’s shortage of trade finance, this facility also focuses on addressing the impact of climate change, by supporting the adoption of energy efficient technologies, ensuring sustainability of operations, and cutting carbon emissions.”

He said that IFC has now had partnership in trade and finance, but it would go in other sectors such as energy, manufacturing and agriculture, among others in the days to come.

This is the second partnership between IFC and Global IME. In 2019, IFC invested $20 million in the bank to support SMEs.

 Published in The Rising Nepal daily on 29 September 2022. 

NAFIJ awards journalists

 ‘Better strategy needed to create self-reliant economy’

 

Kathmandu, Sept. 28

Khem Raj Shrestha of Bizmandu won the Sharada Devi-Dhundiraj NAFIJ Economic Journalism Award while Bijaya Parajuli of Onlinekhabar and Anup Acharya of Taksar magazine won CBFIN-NAFIJ Banking Journalism Prize. The economic award comes with a purse of Rs. 100,000 and a certificate while the latter is the prize of Rs. 50,000 each to two journalists. The awards are given away to the best journalists of the year in the respective field.

Nepal Association of Financial Journalists (NAFIJ) has established the economic journalism award with the financial support of Rs. 1 million in a revolving fund from insurance expert, Ramesh Kumar Bhattarai, and banking award with the cash support from the Confederation of Banks and Financial Institutions (CBFIN).

Deputy Governor of the Nepal Rastra Bank, Bam Bahadur Mishra, CBFIN President Pawan Kumar Golyan, Bhattarai and President of Nepal Chamber of Commerce, Rajendra Malla awarded the winners with cheques, certificates etc at a programme organised in the Capital on Wednesday. Both the awards will be given to the best journalists/reports every year.

NAFIJ also released its annual journal ‘Arthachitra’ on the occasion. It focuses on self-reliant economy and contains articles and opinions from the experts from various sectors in the government and private sector.

On the occasion, Deputy Governor Mishra said that there is still a lot to be done to create a self-sustaining economy.

"There is a big gap in the trade deficit, we should pay attention to the items that can be self-sufficient and move ahead with a better plan and strategy,” he said while warning that the economy should not be destroyed in the name of self-sufficiency.

Mishra said that much can be expected from agriculture and tourism when talking about self-reliance.

While addressing the award ceremony, NCC president Malla announced that two awards will be given to journalists. Nepal Non-Life Insurance Association would manage resources and support in awarding journalists covering agriculture and insurance. He also announced that the amount of two prizes will be Ra. 50,000 each to two journalists. Malla has been elected to the post of the chairman of the association.

He demanded that the banking system should be made more convenient. He argued that the provision of unnecessary information seeking while making deposits has caused losses to the economy. "If it is found that a person has earned money through unfair means, the government will find out from the investigation, but general people have been hit more by this provision," he said.

Likewise, Golyan said that there should be an economic revolution to make the economy self-reliant and media should extend its support to the drive.

“There is a great need to encourage indigenous production and its use. Such awards helps the journalists in feeling the responsibility of the profession and help in the economic growth,” he said.

Another award trustee Ramesh Kumar Bhattarai said there is a need of in-depth economic journalism. “If a regulatory agency announces a new policy, media should just not only report about it but also interprets it and analyse its impacts and repercussions on the business and economy,” he maintained.

Published in The Rising Nepal daily on 29 September 2022.

EC enforces code of conduct

Kathmandu, Sept. 27

The Election Commission Nepal (ECN) has directed the political parties, leaders and other concerned individuals to follow the 'Election Code of Conduct, 2022' from Wednesday.

Issuing a 60-point directive to them, the election authority said that to maintain fairness, impartiality, transparency and fearless environment during the election, adherence to the code of conduct is crucial.

People/agencies responsible to abide by the code of conduct:

a.       Government of Nepal and its ministers

b.      Provincial governments and its ministers

c.       Constitutional bodies and their office bearers

d.      Agencies of federal and provincial government and their officials

e.       Local executives and their members

f.        Employees of federal, provincial and local level

g.      Security agencies and its employees

h.      Government, semi-government and public offices and employees

i.        Political parties and their sister organisations

j.        Candidates and their relatives

k.      Election agents and vote counting representatives of political parties and candidates

l.        Public office holding individuals

m.    Officials of the observation committee and monitors

n.      Media institutions and their employees and media persons

o.      Private and non-government organisations, and their employees

p.      Teachers and staff of schools, colleges and universities

q.      Voters

r.        Development partner organisations

s.       Projects run by government or semi-government agencies and their staff

t.        Organisations running voters' education and their staff

u.      Officials, employees and workers of private sector banks and financial institutions, cooperative organisations, and commercial and industrial sector

v.      Officials, employees and workers of commodity or service providing companies

w.    Other agencies and persons identified by the ECN

"No work should be done to exhibit weapons or explosives, threaten anyone or damage their social prestige, boycott or threaten to boycott someone from the society, misuse economic resources to influence voters and votes," said the ECN in a statement.

The 60-point directives bar any candidates or concerned persons as well as organisations to offer or pledge or receive any gift, prize, donation in the form of cash or goods, and throw or participate in feasts. 

Independence, sovereignty, territorial integrity, national unity, and dignity of the country should not be hurt or affected while conducting election and promotional campaign. Likewise, no one should disturb the harmony among the various castes, religions, classes, regions and communities or propagate hatred among them and incite violence.

The code of conduct has barred any political party, candidate, sister organisation or concerned individual from conducting demonstration or protest programmes targeting someone at his/her residence. They are not allowed to hold rallies and processions, corner meetings, mass meetings and other gatherings without obtaining permission from the local administration.

Similarly, use of flags, clothes, stickers, caps, vests, T-shirts, jackets, shirts, towels, masks, badges or lockets containing the insignia, election symbol of the candidate or political parties is also restricted. Such items can't be pasted or hung at public places or private properties.

"More than two political parties, candidates or sister organisations of the parties should not organise rallies, processions, meetings and other programmes at the same location or road at the same time," read the code of conduct.

No stakeholders are allowed to announce to donate money or goods or prizes or election expenditures to any other parties while children are not allowed to be used in any political activities.

No posters or digital displays or road shows are allowed for the election campaigns.

 Published in The Rising Nepal daily on 28 September 2022. 

Nepal hosing first ever Green Hydrogen Summit

Kathmandu, Sept. 27

With the aim of increasing investment in the clean energy sector and sustainable climate-friendly infrastructure to reduce the impact of climate change and achieve economic prosperity, Green Hydrogen Summit (NGHS) is being held for the first time in Nepal on October 10 and 11 this year.

The organisers informed at a press conference on Tuesday that the summit would  try to prepare a foundation for the support to the study of production, storage and distribution capacity of green hydrogen. It has given a theme 'antidote for melting mountains'.

It is being organised by the MIT Group Foundation, Global NRN Foundation, Ministry of Finance, and the Ministry of Energy, Water Resources and Irrigation.

Chairman of MIT Group Foundation and former chairman of Non-Resident Nepali Association (NRNA) Shesh Ghale informed that the summit was being organised to discuss ways to make hydrogen production feasible in Nepal since it has emerged as an environmentally and economically strong option across the world.

"The government should create a clear vision for green hydrogen production and create an environment where the private sector can also take the lead," he said.

Jamuna Ghale, the founding member of Global NRN Foundation, informed in the press conference that there would be a serious brainstorming on the policy and other arrangements to be made in Nepal based on the international experiences and technologies used in the field of hydrogen production.

According to her, it is necessary for all stakeholders to use the immense potential of water resources in hydrogen production to improve the environment, public health, and export trade.

Similarly, the Chief Executive Officer of Wind Power Nepal, Kushal Gurung, said that distinguished personalities of Nepali industry, representatives of various ministries and government offices, development partners, multilateral international community, United Nations agencies, foreign embassies, international experts and representatives of major companies working in green hydrogen technology would participate in the event.

Janaki Gurung, founding member of Global NRN Foundation, said that the conference will discuss and analyse the production of green hydrogen in Nepal and its uses to reduce the impact of climate change.

According to the organisers, the goal of the conference is also to increase the assurance of energy and food security by developing an environmentally sustainable green hydrogen economy in Nepal.

Similarly, international speakers will give information about the cost of green hydrogen production, the technology used and the global trends. Gurung said that the aim of the conference is to attract large amount of private investment in green hydrogen and urea production.

It is also expected to help the Nepal government prepare a roadmap for easy transmission of energy, which will help achieve sustainable development goals, prioritise green and climate-friendly green hydrogen plans.

Published in The Rising Nepal daily on 28 September 2022. 

Conference on sexual minorities kicks off in Kathmandu

 Lalitpur, Sept. 27

The two-day 'Born with pride' conference to promote conversation with sexual minorities and concerned stakeholders kicked off here on Tuesday.

The primary objective of the conference is to engage in conversation with multiple stakeholders such as LGBTQIA plus communities, politicians, activists, academicians, lawyers and civil society, said the organisers.

It also aims to provide a platform and visibility for the queer community, build a network of different stakeholders working for the rights of the queer community, and exchange knowledge about successful projects and learn from the stories of political representation, achievements, challenges and resilience.

The conference is being organised by the Friedrich Naumann Foundation for Freedom (FNF) Regional Office South Asia in collaboration with Samriddhi Foundation, Embassy of Germany in Kathmandu and German Nepal Friendship Association.

They said that Nepal was chosen as a venue for the conference because of its progress in protecting the rights of the lesbian, gay, bisexual, transgender, queer, intersex and asexual community.

Following a ruling from the Supreme Court of Nepal in 2007 that ordered the government to recognise a third gender category based on an individual's 'self-feeling', the latter included it in the voter rolls in 2010, citizenship documents in 2013, passports in 2015 and federal census 2021. Activists term it as a significant achievement for the country and queer community.

About 21 speakers and eight keynote speakers from seven south Asian countries as well as Europe and Tibetan community are attending the event.

There are five interactive sessions during the conference to discuss multiple topics like queer in power, inclusive digital spaces for queer persons, issue of legal recognition, role of media, acceptance and integration of queer persons in civil society. 

Published in The Rising Nepal daily on 28 September 2022. 

Lumious launches battery exchange offer

Kathmandu, Sept. 27

Amtrade Pvt. Ltd., the sole official distributor of Luminous Power Backup Solutions in Nepal, has released a festival offer targeting Dashain, Tihar and Chhath.

The offer will start from 22 September and will be valid till 31 October 2022, informed the company in a statement on Sunday.

Under the Luminous festival offer, customers can exchange any old battery of any brand with a new Luminous battery and get up to 52 per cent discount on the maximum retail price of the battery.

Likewise, while purchasing a new battery of the Luminous brand, customers can scan the QR code at the official dealer of the company and visit the company's website by entering their details to stand a chance to win a Redmi Watch 2 Lite in a lucky draw.

There will be a total of three lucky winners in this lucky draw scheme. According to the company, the exchange offer will be applicable on ranges of Luminous batteries (100 AH to 220 AH) and customers will have to exchange with the same battery AH.

The company said that the winners of this lucky draw will be announced on the company's website around the second week of November this year.

Published in The Rising Nepal daily on 28 September 2022. 

King’s College, RBB sign MoU to promote innovative business ideas

Kathmandu, Sept. 27

King’s College has signed a Memorandum of Understanding (MoU) with Rastriya Banijya Bank (RBB) to collaborate on the ‘Otharo Incubation Programme’.

Otharo is a bi-yearly incubation programme, managed and organised by King’s College where ideas are converted into viable businesses after undergoing a rigorous six-month process of workshops, mentorship programmes, expert sessions and provision of necessary support system.

This collaborative effort aims to support entrepreneurs, create entrepreneurial ventures, and generate more employment opportunities for Nepali youths, said the college in a statement on Sunday.

"The programme will commence with King's College opening applications for innovative business plans from Nepali youth across the country who want to receive necessary training, mentorship, and support related to entrepreneurship in building their venture," read the statement. 

As per the collaboration, the overall programme will be jointly funded by the college and RBB, with the latter providing a subsidized loan to three ventures going forward from the incubation programme. RBB has also agreed to provide finance related experts as coaches to support the selected incubatees of the programme. 

The CEO of RBB Kiran Kumar Shrestha said that the programme is aimed for youths who seek support system in turning their ideas into a viable venture, and such effort will take the country on the road of prosperity.

Narottam Aryal, Chairman of King’s College, stressed on the need to create an entrepreneurial ecosystem to help nurture ventures, an ecosystem that is willing to take risks and contribute towards the development of young innovative startups from the very beginning, and continuously support them for the longer haul. 

Published in The Rising Nepal daily on 28 September 2022. 

FNCCI VP urges NRNs to bring investment, technology to Nepal

 Kathmandu, Sept. 24

Chandra Prasad Dhakal, Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has urged the non-resident Nepalis in Europe to bring Europe's prosperity, knowledge and technology to Nepal.

Addressing the 14^th European regional meeting of the Non-Resident Nepali Association (NRN) held on Saturday in Sweden, he asked all the Nepalis in Europe to bring the prosperity they have earned there into Nepal and to inspire industrialists from Europe to invest in Nepal, informed the NRN Europe Committee.

"Be it in Europe or in other countries of the world, Nepalis have been staying to acquire knowledge, skills, capital and technology. Bring these acquisitions to Nepal, the prosperity of our country is not far away," he said.

Responding to the case of some NRNs and investors saying that there is no investment environment in Nepal, he said, "It is not that there is no investment environment in Nepal. If anything needs to be reformed, FNCCI will facilitate in that regard. This is the right time for investment in Nepal."

Stating that he was eager to work in a joint venture with the NRNs, Dhakal also gave an example of the 27-MW Dordikhola Hydroelectricity Project, a joint venture of the same nature, which has been successful and electricity generation has been started.

Stating that one can get returns by investing in hydropower, tourism and infrastructure sectors of Nepal, he presented various examples of how to benefit from them. 

Published in The Rising Nepal daily on 25 September 2022. 

Mangalam awards technicians

Kathmandu, Sept. 24

Mangalam Pipes has awarded technicians with laptops, televisions, motorbikes and gold recognizing their contribution in promoting the products of the company and supporting in sales.

At a 'Technician Meet' organised in the Capital the other day, the company distributed 11 laptops, 17 television sets, and 36 tolas of gold to the technicians. Likewise, it awarded four technicians with eight tolas of gold each, three with 220cc motorbikes, four with 150cc bikes and eight with 125cc bikes.

"We distributed awards and prizes to 87 technicians. Our aim is to recognise the hard work and contribution of technicians including plumbers to the company," said Abhinav Churiwal, Managing Director of Mangalam Pipes.

The company is a part of Mangalam group that was started in 1962 with the production of iron and steel trading. The group is involved in building materials, plastic goods, real estate, travel and tourism and energy.

According to the company, Mangalam is among the few companies in Nepal that provides one stop solutions for plumbing, drainage, water supply, agriculture and electrical piping. 

Published in The Rising Nepal daily on 25 September 2022. 

Implementation of intl. accords key to provide relief to LDCs: Paudyal

Kathmandu, Sept. 24

Foreign Secretary Bharat Raj Paudyal called for the timely implementation of internationally agreed goals and frameworks like 2030 Agenda, Paris Agreement, Addis Ababa Action Agenda, among others, as a way out of the present crisis that the humanity is facing.

Addressing the annual Ministerial Meeting of the Group of 77 and China on the sidelines of the 77^th Session of the United Nations General Assembly on Friday, he emphasised on the implementation of the international agreements to provide relief to the Least Developed Countries (LDCs), landlocked LDCs and Small Island Nations which were facing challenges with growing food and fuel prices and rising inequality.

"Humanity faces multiple challenges arising from the pandemic, climate crisis, geopolitical tensions, and economic recession. People’s livelihood in vulnerable nations like the LDCs, LLDCs and SIDS are severely impacted by the problems like rising inequality, soaring food and fuel prices as well as financial and debt distress," Paudyal said, according to a statement issued by the Permanent Mission of Nepal to the United Nations in New York of the United States of America.

Emphasizing on the importance of solidarity and cooperation at the global level, the Foreign Secretary underscored the need to fulfill ODA commitments and to utilize all forms of cooperation—North-South, South-South and Triangular—to accelerate global development.

"He also reiterated Nepal’s solidarity with the group’s principles of unity, solidarity, and cooperation, and Nepal’s support for the cause of global peace and prosperity," read the statement.

Earlier on the same day, Paudyal had meetings separately with the Foreign Minister of Sri Lanka Ali Sabry and Deputy-Foreign Minister of Vietnam Ha Kim Ngoc and discussed matters of mutual interest at bilateral, regional, and multilateral levels.

The Foreign Secretary also had a fruitful meeting with UN Under-Secretary General and High Representative, Rabab Fatima. The discussion was focused on strengthening cooperation between Nepal and the UN on issues related to LDCs and LLDCs, and Nepal’s graduation from LDC category.

Similarly, Foreign Secretary Paudyal met separately with Under-Secretary General for Operational Support Atul Khare and Under-Secretary General for Peace Operation Jean-Pierre Lacroix. Matters related to Nepal-UN partnership in UN peacekeeping including deployment, training and safety/security of peacekeepers were discussed, said the mission.

Published in The Rising Nepal daily on 25 September 2022. 

Transport workers cry foul over policy to ditch 20-year-old vehicles

Kathmandu, Sept. 22

Self-employed transport workers have demanded with the government to expand the vehicle fitness testing facility across the country and allow the ‘technically fit’ vehicles to ply on the road even though they are in operation for more than 20 years.

“Our demand is that the vehicles should be allowed to run on the basis of their fitness test. Some vehicles could be unfit to run in 10 years while others won’t be worthless even after 30-40 years," President of Self-Employed Transport Workers’ Union (SETWU), Khadga Bahadur Giri, said at a press conference organised in the capital to protest the government policy to bar 20-year-old vehicles from running.

Currently there is only one vehicle fitness centre run by the government at Ekantakuna where, sometimes, entrepreneurs have to wait for up to six days for their turn to get their vehicle’s fitness checked. Another one is in Teku which is used for testing the fitness of private vehicles.

“The government should expand fitness centres to all seven provinces. Even though the government raises a large amount of revenue from the import and operation of vehicles, it has been reluctant for long to provide essential facilities and services to the entrepreneurs,” said Madhu Adhikari, Vice-President of SETWU.

The organisation maintained that the fitness of a vehicle depends on its care so putting all the vehicles in one basket is not appropriate. According to the transport entrepreneurs, vehicles imported from the third countries have longer life while vehicles made in India have comparatively shorter life-span but most of them are already displaced.

However, we don’t demand to permit the damaged and unfit vehicles to run, they said.

With the implementation of the policy, about 10,000 vehicles, registered with the government from 1996 to 2015 and used for public transportation, would be out of business. Most of these vehicles are the products like Toyota, Mitsubishi, Nissan, Kia and Hyundai. Since the price of these vehicles went up significantly in the previous decade, their replacement would propel the import of Indian vehicles which compared to their third counterparts have shorter life and lower quality, said the entrepreneurs.

According to Giri, replacement of these vehicles would result in the loss of about 10,000 job loss and 50,000 dependent family members will be affected. Self-employed transport entrepreneurs cover more than half of total businesspersons in this sector.

“Furthermore, it will jeopardize the investment of about Rs. 15.31 billion. The displacement of vehicles in the current situation will have a big impact on the foreign exchange reserves of the country,” he said.

Meanwhile, 11 banks and financial institutions and 124 cooperatives in the Kathmandu Valley have mobilsed loans to purchase micro-buses.

With the depleting foreign currency reserves, the government has imposed a ban on various luxury items, including vehielcs and asked the importers to manage cash margins on the imports of other items. The balance of payment is sufficient to manage the goods and services imports for eight months, according to the Nepal Rastra Bank.

The Department of Transport Management (DoTM) has recently seized more than two dozen vehicles used for public transport. It said that it has been implementing the policy to stop the two-decade old vehicles from running on the road.

The SETWU has submitted memorandums to   the Ministry of Physical Infrastructure and Transport of the federal government, Development and Technology Committee of the Parliament, DoTM and Ministry of Transport of all the seven provinces, demanding to correct this rider. “But, no one paid any attention to our demands,” said Adhikari.

Ravi KC, President of the United Transport Workers Association, said that the government has not stopped collecting tax from the vehicles that have been in operation for 20 years and transferring their ownership.

The government had announced the policy to replace 20-year-old vehicles more than two decades ago in 1999 but it had not been implemented.

Later, in 2014, the government began to implement the policy but seizing of vehicles has begun recently. 

Published in The Rising Nepal daily on 24 September 2022. 

Nepal, South Korea ink MoUs

Kathmandu, Sept. 23

The Ministry of Finance (MoF) and the Embassy of South Korea signed the Memorandum of Understandings (MoUs) for 2 projects worth US$ 24 million (about Rs. 3 billion) to support returnee migrants in Nepal and enhance the capacity of Nepal Police in cyber security.

The MoUs for 'Strengthening Stage-Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal' and 'Establishment of Cyber Bureau with Capacity Building for Nepal Police' was signed on Friday at a programme held at the MoF.

For these two projects, Government of Korea agrees to extend a total of US$ 16 million and US$ 8 million each as grant assistance to Nepal, the parties of the MoU said in a joint statement.

 The MoUs were signed by Krishna Hari Pushkar, Finance Secretary and Chong-suk Park, Ambassador of South Korea to Nepal. The projects will be implemented by Korea International Cooperation Agency (KOICA) in close collaboration and coordination with respective line ministries and other government agencies, read the statement.

Korea returnee migrant support project aims to contribute to socio-economic development of Nepal and increase employment through stable reintegration of Korea returnee migrants and enhancement of their entrepreneurship capacity.

According to the MoF, the project will also create a virtuous cycle and support system for Korea returnee migrants in Nepal for their enhanced information accessibility, and increased access to financial support through Agriculture Development Bank Limited (ADBL).

"Similarly, the main objective of the Cyber Bureau project is to strengthen the anti-cyber-crime capabilities of Nepal Police, wherein the main component of the project is to construct a state-of-the-art building of the Cyber Bureau, provide equipment related to cyber-crime investigation and digital forensic lab and capacity building of relevant human resources of Nepal Police," read the statement.

Pushkar expressed the importance of these two project in equipping and capacitating Cyber Bureau to control increasing cases of cyber-crime as well as reintegrating the returnee migrant workers from Korea to establish themselves in their society and to increase their employability in Nepal.

During the event, Chong-suk expressed his concerns on the rate of cybercrimes that is massively increasing worldwide, including in Nepal, and hoped that the Cyber Crime Control Project will be an important support to strengthen the capacity of Nepal Police to control cybercrimes in Nepal.

He also stated that through the Korea Returnee Migrants project the large number of Korea returnees can utilize their skills and establish enterprise, which can generate employment and contribute in economic growth of the country.

Published in The Rising Nepal daily on 24 September 2022. 

New leadership in Nepal Russia CCI

Kathmandu, Sept. 23

Nepal Russia Chamber of Commerce and Industry (NRCCI) has elected a new working committee under the chairmanship of banker Ashok Sherchan.

The 25^th General Assembly of the binational chamber held in the capital on Friday unanimously elected a 26-member working committee in the leadership of Sherchan who is the chief executive officer of Prabhu Bank.

Naresh Lal Shrestha is the outgoing president of the association and Rajesh Kazi Shrestha is the honorary member, while Diwas Amatya is the senior vice-president and Kumar Karki and Nima Nuru Sherpa are the vice-presidents.

According to the chamber, Bishnuhari Pandey was elected as general secretary, Yamuna Shrestha as treasurer and Anurag Goyal and Avinash Silwal as secretaries.

Similarly, the elected executive committee members of the association include Amrit Khadka, Anil Manandhar, Anuj Bhattarai, Deepak Raj Bhusal, Dr. Bijaya Thapa, Dr. Mani Ram Pokharel, Dr. Unnat Shrestha.

Other members of the executive committee are Gore Sherpa, Lokeswara Man Joshi, Manoj Rasaili, Praveen Gauchan, Pranil Man Singh Pradhan, Ravi Thapa, Rupak Rajvanshi, Sanchit Bajracharya and Saroj Pandey.

Diplomatic relations were established between Nepal and the then Soviet Union in 1956.

Published in The Rising Nepal daily on 24 September 2022. 

ECN asks MoF to clarify its acts

Kathmandu, Sept. 23

The Election Commission Nepal (ECN) has said that its attention has been drawn to the Ministry of Finance (MoF)'s act to create new plans and programmes and transfer budget to ensure their implements.

"The MoF has released funds and ensured resources for the programmes, apart from the approved annual projects mentioned in the budget statement of the Fiscal Year 2022/23, after the announcement of the election," the election body said in a statement on Friday.

The Commission has asked the finance ministry to clarify if it has created programmes and allocated budget for new projects after the announcement of the general elections on November 20.

It had directed the ministry to provide the details of the budget transfers and allocations in a ministry-wise formats within 24 hours in order to know whether the transfer of funds and resources have been ensured or not.

According to the ECN, when new plans and programmes are conducted separately from the approved annual budget and programme, the fairness of the election will be adversely affected.

Published in The Rising Nepal daily on 24 September 2022. 

ADB makes 4.7% growth projection for Nepal

 Kathmandu, Sept. 21

The Asian Development Bank (ADB) published its estimates about the economic growth of Nepal in 2022/23 on Wednesday keeping the numbers at 4.7 per cent.

This is much lower than the government’s growth target of 8 per cent announced through the budget of the current year announced in the end of May.

“Nepal’s economy is estimated to modestly expand by 4.7 per cent (at market prices) in fiscal year 2023, down from an estimated growth of 5.8 per cent in FY2022,” informed the Asian Development Outlook 2022, an economic publication of the ADB.

In the last fiscal year, Nepal’s economy was projected to grow by 5.84 per cent against the initial government estimates of 7 per cent. Failure to mobilse the capital budget and low development spending, growing prices of capital goods in the international market and post-pandemic business revival created liquidity crunch as well as the external sector pressure in the economy in the last fiscal.

That year, growth was low while inflation was high.

The ADB maintained that the Gross Domestic Product (GDP) growth is forecast to moderate largely reflecting the tight monetary policy for the current year, necessary to stem the rise in imports, a marked decline in foreign exchange reserves, and inflationary pressure.

“Downside risks to growth may arise from further stringent measures by the authorities that may be necessary to curb import, which will depress domestic production and consumption, adversely affecting growth,” said ADB Country Director for Nepal, Arnaud Cauchois.

He also stated that a resurgence of COVID-19 infections leading to lockdown measures, intensification of dengue fever straining the fragile health system, disasters triggered by natural hazards, and geopolitical turmoil may further dampen growth prospects.

The update highlights that agriculture growth will likely be boosted owing to a normal monsoon, but the ongoing fertilizer shortages may adversely affect paddy production. Industry is expected to grow on increased generation of hydroelectricity and capacity utilization of industries. The report also notes that services growth will likely moderate owing to a slowdown in real estate, wholesale, and retail trade activities, induced by credit control measures and hike in interest rates.

“But provincial and federal level elections scheduled in November 2022 will stimulate spending supporting GDP growth,” said the multilateral donor.

According to it, the government’s fiscal policy reflected in the budget speech for 2022/23 is somewhat expansionary, focused on strengthening agriculture, industry, infrastructure, and social protection. Monetary policy is contractionary, aimed at curbing high credit growth to contain domestic demand, escalating prices, and rising imports.

The country’s inflation will likely marginally decline to 6.1 per cent in FY 2022/23 from 6.3 per cent in 2021/22, restrained by tight monetary policy, a normal harvest, somewhat subdued oil prices, and a modest inflation decline in India.

Likewise, the ADB said that the current account deficit is estimated to narrow to 8.1 per cent of GDP in FY2023 owing to a moderation in merchandise imports amidst stable remittance inflows. “Out-migration for foreign employment has picked up, exceeding the pre-pandemic level of FY2019. Imports related to COVID-19 will have substantially decreased and falling oil prices will help lower import bill for Nepal,” read the report. 

Published in The Rising Nepal daily on 22 September 2022. 

Finance Ministry asks govt agencies to put money in microfinance fund

Kathmandu, Sept. 21

Finance Minister Janardan Sharma has said that a certain percentage of the money in government institutions will be deposited in microfinance fund.

“The process of depositing a certain per cent of the amount of the institutions to the fund to provide concessional loans to small farmers and small start-ups has been moved ahead,” he said while addressing the 49^th anniversary ceremony of the Deposit and Credit Guarantee fund (DCGF).

While saying that it is difficult and complicated for small farmers and small businessmen to get loans from big banks and financial institutions, Minister Sharma said that now loans will be provided easily from microfinance fund.

"A mechanism is being created to provide a certain per cent of the capital in government institutions to provide loans to small farmers, small entrepreneurs and small startups through the Microfinance Fund in a hassle-less manner," he said.

The government is also developing a procedure to mobilise loans to the small farmers and entrepreneurs by all the BFIs through the fund. The finance minister also urged the BFIs and stakeholders to give suggestions for the procedure of that mechanism.

The budget of the fiscal year 2022/23 mentions that a microfinance fund of Rs. 500 billion will be created, and concessional loans will be given to small farmers, small entrepreneurs and startups through the same fund.

Likewise, Minister Sharma urged the BFIs to invest in small production-oriented businesses while mentioning that imports cannot be substituted without increasing domestic production.

Such support will help in increasing the production which will support in increasing agri-processing industries and export of such goods, he maintained.

According to him, the main objective of the government is import substitution. There is no other alternative to increase production for import substitution. Through small industries that can increase agricultural production and process it to a certain level, domestic as well as export markets can be created.

He said that the existing liquidity problem will be solved with a joint effort by the MoF, Nepal Rastra Bank and other agencies after a comprehensive discussion.

Similarly, Minister Sharma mentioned that pandemics, natural disasters and unexpected events have been adversely fueling the price hike and creating economic challenges.

“Even in such cases, there is an urgent need to build an economy that meets the minimum needs. There should be an economy that can easily handle the minimum needs of the people. We have enough resources and means for this," he said.

The working group formed by the ministry to study the viability and operation of microfinance fund has submitted the report with the draft of fund management regulations to Minister Sharma on Tuesday. The group was led by Suman Dahal, Joint Secretary of the MoF.

Published in The Rising Nepal daily on 22 September 2022. 

Indonesian envoy stresses on people-to-people relations with Nepal

 Kathmandu, Sept. 21

Ambassador of Indonesia to Nepal based in New Delhi, India, Heru Hartanto Subolo, has stressed on the need to strengthen the people-to-people relations between Nepal and Indonesia.

“I am here in Nepal to explore the possibilities in various areas of cultural associations and people to people connections,” he said while speaking at Nepal Indonesia Business Forum 2022 jointly organised by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) And Indonesian Embassy in New Delhi on Wednesday in Kathmandu.

According to him, there is a need to explore the tourism opportunities like Lumbini and Jakarta between the two countries, enhance the capacity of the entrepreneurs and system and plan to launch direct flight between the two countries.

He is in Kathmandu to promote the upcoming Trade Expo Indonesia 2022. He is leading a delegation of Indonesian businesspersons and industrialists.

“Our interest is to facilitate policy to create more connection between the industry and trade of Indonesia and Nepal. There will be a direct flight service coming in operation in r future and on-arrival-visa for Nepali people in Indonesia,” said Ambassador Subolo.

He also said that the trade expo would introduce various potential sectors of business and investment which Nepali businesspersons might have not known. According to him, while Nepali businesspersons can visit Indonesia with tourist visa or business visa, the country is planning to provide 'special visa' for them.

Likewise, he informed that preparations were underway for signing a memorandum of understanding between the two countries for visa arrangement facility for diplomats and officials.

Earlier on Tuesday, Ambassador Subolo with his delegation called on Prime Minister Sher Bahadur Deuba where he said that India was positive about establishing residential embassy of Indonesia in Nepal.

Chandra Prasad Dhakal, Senior Vice-President of the FNCCI who is also the honorary consul of Indonesia to Nepal, said that both the countries have gone a long way in their diplomatic relations since 1960s however following the establishment of the honorary consul of Indonesia in Nepal, business relations have also begun to prosper between them.

Trade Expo in Indonesia can be a platform for the businesspersons of both the country for the promotion of trade, business and investment, he said. “Hydropower and tourism in Nepal can be rewarding areas of foreign direct investment, and we are ready to welcome investment in these sectors,” he said.

President of FNCCI, Shekhar Golchha, stressed on greater business and investment ties between the two countries.

Published in The Rising Nepal daily on 22 September 2022. 

Japan to provide grant, loan assistance of Rs. 16.2 billion

Kathmandu, Sept. 21

Governments of Nepal and Japan have signed two agreements for utilizing grant assistance for project to improve and rehabilitate irrigation in Terai, and urban transmission and distribution.

The programmes include Japanese Yen 2 billion and 256 million (about Rs. 2 billion) for the implementation of the Project for the Improvement of the Rehabilitation of Irrigation System in Eastern Terai Area; and the concessional credit of Yen15 billion and 901 million (about Rs.14.2 billion) for the Urban Transmission and Distribution System Improvement Project.

“The grant assistance will be used for the maintenance and improvement of Chandra Nahar irrigation system for reliable and continuous irrigation facilities, mainly in the Eastern Terai region,” said the Ministry of Finance in a statement on Wednesday.

Similarly, the concessional credit will be utilised for improving the urban electricity transmission system in the big cities of Nepal, including Kathmandu and Pokhara with the aim of reducing transmission losses as well as increasing the reliability of electricity distribution. The credit assistance applies interest rate of 0.01 per cent per annum, 30 years’ repayment period and 10 years’ grace period.

Finance Secretary, Krishna Hari Puskar and Ambassador of Japan to Nepal, Kikuta Yutaka signed and exchanged the Notes and Records of Discussion on behalf of their respective governments.

Similarly, grant and credit agreements to this effect were signed by Ishwori Prasad Aryal, Joint Secretary and chief of the International Economic Cooperation and Coordination Division of the MoF and Okubo Akimitsu, Chief Representative of JICA Nepal.

Puskar said that the implementation of these two projects would be crucial for improving irrigation facilities in Nepal, increasing the reliability of electricity supply and reducing the transmission losses.

 Acknowledging the long-lasting and harmonious bilateral relations and development partnership between two countries, he expressed his confidence that such relation will continue in new height. 

Published in The Rising Nepal daily on 22 September 2022. 

IME, UNCDF sign accord to serve Remittance-receiving women better

Kathmandu, Sept. 20

IME and United Nations Capital Development Fund (UNCDF) have signed a Memorandum of Understanding (MoU) to support remittance-recipient women with livelihood and skill development training and problem solving.

They also agree to enhance the formalisation of remittance inflow in Nepal.

“This agreement will primarily focus on addressing the challenges of the remittance-recipient women and addressing those problems,” said Hem Raj Dhakal, Managing Director of IME Group, at a programme organised to sign the MoU in the Capital on Tuesday.

Talking to The Rising Nepal after the event, he said that it was the first step in supporting the women of the families that have their male members abroad for employment, and other remittance companies and stakeholders would be roped into the programme in order to extend the reach and impact of the project.

“This is a national campaign and we want every stakeholder out there, including the government to be the part of this. With this campaign, we aim to support the government in the national drive of ‘Digital Nepal Framework’ as well,” he said.

According to him, the MoU would also help to forge a collaboration between the IME and UNCDF in increasing the inflow of remittance in digital wallet, thus supporting the reach of and access to the digital technology.

This has come at a time when there is a massive surge in the youth migration from Nepal to the Gulf, Malaysia and elsewhere in the post-COVID-19 situation but remittance inflow has not witnessed a promising trend.

According to the latest report of the Nepal Rastra Bank (NRB), remittance inflows increased by 20.3 per cent to Rs. 92.21 billion in the first month of the current fiscal year 2022/23 against a decrease of 17.4 per cent in the same period last year.

However, the number of Nepali workers (institutional and individual - new) taking approval for foreign employment increased by 222.8 per cent to 44,540 in the first month this year. Likewise, the number of Nepali workers obtaining approval for renew entry for foreign employment increased by 75.4 per cent to 20,390. It had increased by 286.1 per cent last year.

IME said in a statement that it was collaborating with the UNCDF since early 2021 to generate customer insights that will inform the development of migrant-centric and gender-smart financial product and policy making.

According to a latest report by the NRB, about 65 per cent of households headed by females received remittance compared to 30 per cent of households headed by male counterparts.

According to the company, the collaboration led to institutional and data mapping exercises, a market scan, supply-side data analytics of 50 million remittance transactions – international and domestic – conducted via mobile wallets and agents.

“Inbound remittances are a lifeline for Nepal’s economy and people. To support these transactions, in 2020, IME integrated its existing international remittance and domestic mobile wallet service to enable customers to receive international remittance transfers directly into their mobile wallets,” said IME.

However, according to a study conducted by the UNCDF, although evidence suggested that digital remittances accelerate the financial inclusion and resilience of migrants’ families, especially women, they have been slower to adopt the mobile service than men.

They suggested that integrating the products reduces barriers to entry and helps overcome the digital and financial services gap.

 Published in The Rising Nepal daily on 21 September 2022. 

PM appeals for Indonesian investment

Kathmandu, Sept. 20

Prime Minister Sher Bahadur Deuba has asked the Indonesian Ambassador to Nepal to facilitate in bringing in Indonesian investment to Nepal's hydroelectricity and tourism sectors.

PM Deuba made this remark during a meeting with the Ambassador of the Republic of Indonesia to Nepal Heru Hartanto Subolo at PM's Residence in Baluwatar, Kathmandu on Tuesday.

"The Prime Minister said that the embassy should facilitate in bringing Indonesian investment to Nepal's hydropower, tourism and other potential sectors, and also promote Nepal among the mountain-loving Indonesian tourists," Chandra Prasad Dhakal, Honorary Consul of Indonesia to Nepal, quoted PM Deuba as saying. Dhakal had accompanied Subolo during the meeting with the PM.

Similarly, PM Deuba also asked the Indonesian government to establish its residential embassy in Nepal.

During the meeting, Ambassador Subolo said that he would communicate the matter with the Indonesian government and private sector in order to attract their investment in Nepal's potential areas like hydropower and tourism.

He expressed his positive thoughts to establish residential embassy of Indonesia in Kathmandu and would convey the message to his government.

Subolo informed that the two countries, Nepal and Indonesia, were about to sign an agreement to facilitate visa for the diplomatic and official passport holders.

Ambassador Subolo is in Nepal for promoting the upcoming Trade Expo in Indonesia.

"There is a huge potential of trade and investment between Indonesia and Nepal. We are ready to promote the mutual interest of both the countries. The upcoming trade expo will further support this mission," he said.

Asking Nepal government to facilitate in visa for the Indonesian tourists, he informed that his government was planning to provide on-arrival-visa for the Nepali tourists.

Published in The Rising Nepal daily on 21 September 2022. 

Nijgadh airport necessary for nation’s advancement: Report

Kathmandu, Sept. 1

The expert group formed by the government to look into the issue of the construction of the international airport has concluded that an international airport with full capacity to handle the growing air traffic is necessary for Nepal's far-reaching development and economic prosperity.

The group’s coordinator Birendra Bahadur Deuja handed over its report to Prime Minister Sher Bahadur Deuba on Sunday in the presence of Culture, Tourism and Civil Aviation Minister Jeevan Ram Shrestha.

According to the report, a suitable location for a full-capacity international airport is an area between Pasaha and Bakaiya rivers.

About 4,000 hectares of the total area of about 9,000 hactares, area between the two rivers which is connected to the Kathmandu-Tarai Expressway and the East-West Highway is suitable for the large aviation infrastructure, the report concluded.

The expert group has suggested that the airport city concept should be completely abandoned keeping in mind the Supreme Court's order to reduce the number of trees being cut and prevent the environmental damage.

The study report was prepared by the expert group formed as per the decision of the Cabinet, following a mandamus of the Supreme Court in the name of the government, in August this year to study and submit a report for the construction of a full capacity international airport.

The report has suggested to declare an airport protection area of about 9,000 hectares and construct the airport in different stages.

“In total, only about 4,000 hectares area should be used for the construction of the airport and trees should be protected in the rest of the area while river erosion prevention and other necessary protection works should be done by the airport management,” read the report.

Likewise, the group has recommended that in the first phase, trees in only about 1,500 hectares should be felled and the rest of the trees should not be cut until the second phase starts.

It is mentioned in the report that the construction of the airport should be done after completing the legal procedures and obtaining necessary approvals in order to prepare an environmental management plan so as to avert adverse impact on the environment.

“The necessary land for the construction of a full capacity international airport should be obtained and the affected stakeholders should be compensated and rehabilitated according to the law,” maintained the report.

There is a major biological route of elephants within the extended area of Parsa National Park, but the area where some elephants come to roam near is outside the construction site, so the government can protect that area as well. Similarly, the group did not find route of eagles and vultures near the proposed airport construction site and the presence of endangered vultures of Nepal is also low in the area.

After the construction and operation of a full-capacity international airport, the proposed Himalaya-2 route (Kathmandu-Guwahati-Kunming) and L-626 (Kathmandu-Mahendranagar-Delhi) that fly over Nepal’s airspace could be made two-way. This will significantly reduce the distance, time, fuel consumption and carbon emissions while flying to Europe, Middle East, and East Asia Pacific region.

The expert group has also suggested that the delay in the construction of a full-capacity international airport will make the infrastructure more expensive and complicated which in the long run will delay the return from the project. Therefore, it has suggested the government to form a powerful development institution to construct it quickly in a time-bound manner.

Accepting the report, PM Deuba said that the construction of the airport should not be delayed. Likewise, Minister Shrestha said that his ministry would proceed the work according to the report given by the expert group and pledged to begin the work at the earliest.

Other members of the group are economist Rameshwore Khanal, development planning expert Dr. Surya Raj Acharya, urban development expert Prof. Dr. Sangita Singh, wildlife and environment expert Prof. Dr. Prem Bahadur Budha, plant and environment expert Prof. Dr.  Suresh Kumar Ghimire, sociologist Lachhi Singh, senior pilot Krishna Vikram Poudel, senior advocate Dr. Chandra Kant Gyawali and air route expert Mahesh Kumar Basnet.

The Nijgadh International Airport was in discussion for several years in the past and the Environmental Impact Assessment (EIA) report of the project was approved by the Ministry of Forestry and Environment in 2018 and the Civil Aviation Authority of Nepal (CAAN) had signed a Memorandum of Understanding with the Nepal Army to clear the forest, and construct access road and periphery road.

Published in The Rising Nepal daily on 19 September 2022.