Sudeep Koirala receives Rotary Award

 Kathmandu, Mar. 21

Young entrepreneur Sudeep Koirala has received the 'Gopal-Kamala Rajbhandari Rotary Award for Vocational Excellence' that comes with a purse of Rs. 1 million.

The director of Didi Foundation received the award for playing an important role in social entrepreneurship and social change.

Koirala, 33, has managed to receive the biggest award in the Rotary field at a young age. Established in the name of Rotarian Gopal-Kamala Rajbhandari, founding members of Rotary Club in Nepal, this award has been given to those who have contributed to various fields of society. It is said that this award  will be given annually from this year, which was previously given every two years.

Amod Rajbhandari, grandson of Gopal-Kamala honoured Koirala with the award at a programme organised recently on the occasion of the 15^th National Conference of Rotary Club District 3292.

Dr. Ramkantha Makaju Shrestha, Chairman of Dhulikhel Hospital, Dr. Sureshraj Sharma, former vice chancellor of Kathmandu University, Satyamohan Joshi, cultural expert, Indira Rana Magar, President of Prisoners Nepal, and Biswas Dhakal, president of F1Soft International had received the award in the past.

Amod Rajbhandari said that the award was given to young entrepreneur Koirala with the aim of encouraging those who play an important role in social change. According to him, a six-member award selection committee was formed under the chairmanship of Basudev Golyan.

Koirala said that  he would invest the amount of the award for the betterment of the society. 

Published in The Rising Nepal daily on 22 March 2023.      

Business representatives hold meeting with Myanmar envoy

 Kathmandu, Mar 21

Nepal Foreign Trade Association (NFTA) and Nepal-Myanmar Chamber of Commerce and Industry (NCCI) jointly held a meeting with Ambassador of Myanmar to Nepal U Sein Oo and  discussed about further strengthening diplomatic and commercial relations between the two countries and the import and export of goods from both countries.

During the meeting, Vinod Kumar Sethia, President of NFTA, said that they were planning to cooperate with business and government agencies of Myanmar for the export of the Nepali goods.

He said that they requested the ambassador for business relations with Myanmar with the purpose of strengthening business, cultural, tourism promotion and people-to-people relations.

Stating that Nepal and Myanmar have been culturally and religiously connected for the past six decades, he urged Myanmar businesspeople to visit Nepal and find business opportunities.

"The government of Nepal is working firmly in the direction of creating a business-oriented, investment-friendly environment through various policy, structural and legal reforms," he said, "The government has also introduced new market-friendly incentives and policies to make Nepal a profitable business destination."

Shiva Kumar Agrawal, President of NMCCI, requested to further strengthen the decades-long relationship by enhancing business and investment between the two countries.

He requested the Myanmar government to operate at least one flight to Nepal every week for the promotion of tourism. He said that this will maintain harmonious relations between the two countries and it will also be easy for tourists from Myanmar to visit Lumbini, the birthplace of Lord Buddha.

Similarly, Agarwal informed that the Nepali delegation is going to visit the businesses and industries of Myanmar in near future.

In that meeting, Ratan Kedia, vice president of NFTA, Samudrapar Paithari Sangh, and Jayant Agarwal, member of the working committee, expressed their views on the issue of increasing foreign trade.

NFTA's working committee member, Jayant Agarwal, who is also the chairman of Roundtable International, asked the ambassador to organise an interaction programme with the young entrepreneurs of Myanmar.

In response, Ambassador Oo stated that he is positive about the demands made by the Nepali businesspeople and expressed his commitment to talking about these issues with the Myanmar government and the entrepreneurs.

Published in The Rising Nepal daily on 22 March 2023.      

‘Monitoring, regulation of financial institutions a must’

Kathmandu, Mar. 19

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has said that the government would convene a comprehensive review meeting to address the problems surfaced in banks, microfinance and cooperative organisations in order to find a solution to them in a package.

Addressing a meeting of the National Cooperative Development Board at the Prime Minister's Office on Sunday, PM Prachanda said that monitoring and regulation of financial institutions is necessary.

"At some point, microfinance did a very good job. Easy and simple loans were provided to people mainly in the rural areas. However, now people have raised many questions about microfinance," he said.

According to him, problems are also seen in cooperatives, and it is necessary to review them comprehensively and formulate the future policy. "That is the only way we can formulate a systematic and scientific policy. I am thinking of calling a comprehensive review meeting of the banks, financial institutions and cooperatives in a few days," he reiterated.

After a comprehensive review, the government will identify and solve the problems of the financial sector.

In the meeting, the Prime Minister emphasised that the cooperative board should regularly monitor and facilitate for the solution of the problems seen in the cooperative sector.

Published in The Rising Nepal daily on 20 March 2023.      

Banking crisis calls for comprehensive remedy

Kathmandu, Mar. 17

On Friday, an employee of a micro-finance company, said she is thinking to quit the job and find one in some other sector. "Anything can happen to you, anywhere, anytime. I don't carry my identity card with me anymore," she said to The Rising Nepal.

On Thursday, a group of people attacked branch manager and executive assistant of Myagdi branch of NIC Asia Bank and injured them. Earlier on Tuesday, Makwanpur Chamber of Commerce and Industry staged a sit-in protest in front of the Kumari Bank's branch office in Hetaunda, obstructed banking service and threatened the staff.

Earlier, staff of a micro-finance institution (MFI) in Jajarkot district, 640 km west of the capital city, was smeared with black shoot.

A campaign against the Banks and Financial Institutions (BFIs) was launched last month by Durga Parsain, a businessman with dubious character, which instigated many small and medium scale entrepreneurs and other individuals to express ire against the BFIs and take to the street. Meanwhile, Nepal National Federation of Entrepreneurs (NFE), a relatively new business association, announced a nation-wide protest against the BFIs.

While business activities, including manufacturing, gradually slowed down and entrepreneurs faced hard times to repay the principal and interest of their bank loan, interest rates climbed to all-time high with banks charging as high as 8 per cent premium on base rate which reached 11 per cent. "A commercial bank has recently sent a notice that interest rate on loan has been revised to 19 per cent," said an entrepreneur.

As the business community, on the eve of the election to choose new executive committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), is trying to vilify the banks, the BFIs have remained largely passive except the Nepal Bankers Association (NBA) and Confederation of Banks and Financial Institutions in Nepal (CBFIN) – an organisation of promoters of the banks, publishing occasional press statements.

The businesses that were hit hard by the 2015 earthquake and Indian blockade the same year had managed to overcome the crises and were ready for the growth and expansion when the coronavirus pandemic battered the business and economic growth became negative with tourism sector losing as much as 17 per cent in year.

To support the business and industry affected by the pandemic, the government and Nepal Rastra Bank (NRB) announced facilities like concessional loans, interest rate discount and refinancing. While everyone appreciated the support measures, a large chunk of the money mobilised to support business rehabilitation went off-track to real estate and stock market. Price of land and house and the stock market (NEPSE) index hit all time high.

However, the warmth could last only for a year. While the private sector lending largely went to import financing, in 2022, the national economy faced a severe liquidity crisis with the Credit-Deposit ratio hitting the 96 per cent mark. On top of it, the Russian invasion of Ukraine led to fuel and food price hike in the international markets, and created supply side constraints.

To put it in the context, the domestic economy was witnessing a boom and consumerism was in full swing but remittance, the much-needed financing for the imports of goods and services, remained stunted while tourism and other sources of foreign currency income were not functional in the wake of the COVID-19 pandemic. In an effort to respond to the situation, the government imposed a ban on the imports of the luxury items including vehicle and liquor, and the central bank implemented a provision to maintain 50 per cent to 100 per cent cash margin on imports.

The situation went out of control of the government and even the finance minister wondered where the money had gone. At the same time, the share market crashed and investors lost billions of rupees in their share valuation while the government's moratorium on plotting the land pushed real estate business into recession. Experts say that the businesspersons who diverted the loans and refinancing money to the real estate and share markets are facing hard times to manage the money to repay the loans.

"There is hopelessness all across the country," said Krishna Prasad Adhikari, Vice President of Confederation of Nepalese Industries (CNI).

From government ministers to business persons and economists, everyone believes that the situation is grave. "I have never seen so many people worrying about the deteriorating economic situation in the country," General Secretary of Nepali Congress, Gagan Thapa has said recently.

Cause of the crisis

Experts are divided on the root cause of the present crisis although they univocally maintain that it was the financial mismanagement and wrong policies thereof.

Economist Dr. Achyut Wagle said that it was the unrealistic share speculation of the MFIs that triggered the present crisis. "Microfinance is basically a social financing but this business in Nepal completely went against the philosophy. There was a fierce competition among the MFIs to earn higher profits," he said. According to him, although the central bank has capped the interest rate at 15 per cent, actual cost of fund is around 25 per cent.

Dr. Wagle suggests that the NRB should revamp the entire loan ecosystem for the deprived sector through microfinance and current practice of financing the MFIs through the commercial banks in the name of deprived sector lending also be stopped. The banks should mobilse the deprived sector lending through their networks which by now has reached all the districts and local bodies except one.

According to former Finance Minister, Surendra Pandey, the roots of present banking crisis go as far as COVID-19 period. Many businesses applied for concessional loans and refinancing even though they did not need it and used the funds to buy land and shares. A large part of loan was used in import financing. "The demand for loan soared with the beginning of the last fiscal year 2021/22 but liquidity remained the same. So, it’s natural that the interest rates went up," said Pandey, while questioning which industry would stay afloat with the loan taken at the rate of above 18 per cent.

Pandey suggested that incentives should be given to the manufacturing sector but not trading since unlike importers and traders, the real sector industries don't earn profits in a fast-track. Likewise, he said that the government should not issue bonds for a while because it might further raise the interest rates as the funds in the banking system and with the people would be mopped up by the government. Since capital expenditure of the government is very pathetic and payment system is sluggish, it would further harm the economy and country's financial system.

Sunil KC, President of Nepal Bankers Association, maintained that when there is credit boom, the money would go to the unproductive sectors as well. "When you have money, you would give away whenever there is a chance of investing it for a good return," he said.

According to him, growing risk in fund mobilisation increases premium as well. Most of the moves are just the response to the market demand. However, he maintained that the crisis has taught bankers should exhibit extra caution during the time of crisis.

VP of CNI, Krishna Prasad Adhikari, said that the present crisis is the result of the mistakes made by all the stakeholders including the government, regulator, private sector and banks. While the private sector wanted to take advantage of the situation, regulators and government were reactive to the situation.

SMEs bear the brunt

Many SMEs feel that they were never facilitated by the government and NRB. Shiva Adhikari, President of Nepal Association of Rafting Agencies (NARA), said that they were always the victims of the policy negligence. "SMEs are the backbone of any economy but in Nepal they were never facilitated. As a result, most of them are informal and rely on cooperatives and local lenders for the arrangement of business fund," he said.  

Adhikari said that commercial banks are not SME-friendly. "Take an example of tourism sector concessional loan which has not reached the needy SMEs, while the large ones took it away," he said. 

According to him, while the BFIs should ensure that the loan is used in the said sectors, lending to unproductive areas like real estate and luxury items should be controlled. He is wondering that the price of land is going up even during the present liquidity crisis but pure businesses are on the verge of collapse.

Same voice is echoed by the women entrepreneurs. The Federation of Women Entrepreneurs Associations of Nepal maintained that there is a need to formalise businesses run by women and extend concessional loan facilities to them.

Businesses versus banks

A section of business persons believe that the conflict of interest on the part of businessmen that are controlling the banks has also contributed to the crisis. Most of the large businesses have invested in BFIs, insurance companies, MFIs and even in cooperatives.

This conflict of interest has a detrimental impact on banking and business. "Organisations like FNCCI don't take up the issues of SMEs," said Shiva Adhikari, President of NARA.

CNI's VP, Krishna Prasad Adhikari, stressed on the need for the separation of businessman and bankers. He also suggested the regulator to take a business-friendly stance. "The central bank should immediately work to bring the spread rate down. It should also inject funds to the businesses facing crisis due to the untoward situation created by the supply side constraints and increased price of raw materials and transportation," said Adhikari.

Meanwhile, many businesspersons and bankers blame the upcoming election of the FNCCI for the worsening situation. "Candidates of vital posts for the FNCCI have been using the anti-banking agenda to garner votes," said a businessman on condition of anonymity. He represents many others.

However, Anjan Shrestha, Vice President of Federation of Nepalese Chamber of Industry (FNCCI), refuted such statements. It's just a coincidence that the election is happening now, he said.

According to him, interest rates should be immediately brought down so that the businesses could be able to repay their loan. "Business loans should be rescheduled and restructured for at least one year, and refinancing facility should be continued," said Shrestha.

Increasing criminal acts

According to the experts, current criminal activities against the bankers, banks and their staffs should be prosecuted as criminal offence. It is the duty of the police and security agencies to identify the criminal activities and punish them as per the law, said Economist Dr. Wagle.

Spokesperson of the NRB, Dr. Gunakar Bhatta, said that there is a group of people that is fueling the protests to push the financial system into trouble hoping to reap benefit from it. Activities like physical attack on the bankers, vandalism and barring people from obtaining services from the BFIs are criminal offences and they have detrimental impact on the confidence of bankers and staff.

"Problems in interest rates and share markets are global. If bankers are attacked just because of the high interest rates, entire ecosystem of financial intermediation could be disturbed. Entire economy might lose confidence," said Dr. Bhatta. He claimed that the foreign experts and banks have also appreciated NRB's moves and regulations in the aftermath of the COVID-19 pandemic.

Sunil KC, President of Nepal Bankers Association, said that the BFIs are the custodians of the public money and it is inappropriate to pressurise them from the street. Disturbance in financial intermediation would create risks in the economy, he said.

Reform measures

The NRB had projected that the interest rates would be adjusted by the end of the current fiscal year 2022/23. While the interest rate would be changed as per the supply and demand of money in the financial system, the central bank had asked the BFIs to reduce the spread rate to 4.2 per cent from the existing 4.4 per cent by mid-April.

Likewise, premium on loan has significantly been brought down to 5 per cent from 8 per cent some months ago.

Dr. Bhatta said that the central bank has formed a task force to implement reforms in the microfinance sector. "We are aware that the microfinance banking in Nepal has deviated from the norms of social banking. It needs correction," he said. Recently, the central bank has also asked the MFIs to refrain from customer duplication.

Similarly, another significant directive has come from the central bank to check the distribution of high amount of dividend by the FMIs. Now, they can distribute only 15 per cent of the total dividend announced. Remaining 85 per cent should be calculated as 100 per cent and half of it should be deposited to general reserve, 35 per cent to customer protection fund and 10 per cent to the Corporate Social Responsibility Fund. Remaining 5 per cent can be further distributed to the shareholders.

Published in The Rising Nepal daily on 18 March 2023.      

‘Resilient infrastructure key to sustainable development’

Kathmandu, Mar 18

Dr. Swarnim Wagle, Economist and former Vice Chairman of the National Planning Commission (NPC), has said that recently created municipalities lack the elements and infrastructure for modern urban planning.

Speaking at 'M2F (Municipal to Federal) Learning Feedback and Review Workshop' organised in Kathmandu on Saturday, he pointed to the need for better plans for urban development, saying it will help in development of tourism and other sectors. 

"We need to create an environment, infrastructure and facilities to attract high-end tourism. For example, Ghalegaun sells room at US$1 while with proper facilities and marketing, the price can go up to $1200," he said.

According to him, Nepal needs to identify some thematic areas of priority to make investment and promotion. There is an immediate need of increasing productivity, he said, adding that economic mobility is weak in various communities, especially Dalits.

Dr. Wagle suggested the local bodies to make a pre-disaster investment, saying it will pay off in the long run. Local infrastructure including schools and health posts should be resilient, he said. 

He also maintained that Nepal's development model is consistent with the concept of green growth, but there is a need for timely solutions for the global warming and climate change as the country is suffering from untimely floods and other disasters caused by climate change.

Dr. Wagle also worried that the country does not have more than three decades to reap the benefits of demographic dividend and said that the window is closing faster than expected.

Kewal Prasad Bhandari, Secretary of the NPC, suggested that municipalities should look green from the land and from sky. We need to find the types of trees that grow tall and are safe for urban societies.

According to him, there is a need to create policy to have open space for every house, and local governments should push hard for this policy. 

Bhandari said that the local governments should manage the materials that they should promised for the victims of natural disasters.

"As per disaster preparedness plan, local bodies should manage relief materials including medicines and tents. Such materials should be replaced with fresh products before their date of expire," he said.

Dhana Raj Acharya, Mayor of Pokhara Metropolis, said that the decision-making process of the local governments should be swift and inclusive.

Protecting communities from natural and man-made disasters should be a priority of local governments, he said.  

"Cities should be livable and infrastructure should be created and facility arranged to meet this requirement. But many reforms in the local bodies are just made on the paper to obtain the grants and financial facilities by the federal government and development partners," he said.  

Dr. Sabita Thapa, Growth and Resilience Adviser, British Embassy in Kathmandu, said that the speed of urban development does not match with the national economic growth.

Manoj Kumar Shah, Mayor of Janakpur Sub-Metropolitan City, said that municipal governments are trying to adopt public-private partnership model of development.

The work shop will run through Sunday. There will be discussions on various aspects of green, resilient and inclusive growth. 

Published in The Rising Nepal daily on 19 March 2023.      

Govt will provide support to complete projects: PM

Kathmandu, Mar. 17                                                                  

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has assured the developers of various infrastructure and industrial projects in Nepal that they would be provided with the necessary support to complete the projects in time.

"The Investment Board Nepal (IBN) and the government will extend all necessary support and coordination for progressing project implementation and completing the projects within the stipulated timeframe," PM Prachanda, who is also the Chairman of the investment body, told the developers.   

He interacted with the developers at the IBN where the latter has briefed the progress of Public Private Partnership (PPP) and Private investment projects facilitated by it to him on Friday afternoon.

During the interaction, the developers of Arun-III and Lower Arun Hydroelectric Projects; Hongshi  Shivam Cement, Huaxin Narayani Cement, Upper Karnali Hydroelectric Project, Upper Trishuli-1 Project, Upper Marsyangdi-2 Peaking Run of the River (PRoR) Hydroelectric Project, West Seti Storage and Seti River-6 PRoR Hydroelectric Project, Dabur Nepal, China-Nepal Friendship Industrial Park Project, Risen Nepal Solar Energy Project and Muktinath Cable Car briefed on  the progress implementation status and key challenges.

According to the developers, they are facing contradictions in investment act and environment act which have detrimental impacts on the projects, informed Ramesh Adhikari, spokesperson for the IBN.

They also complained about the complexities in land acquisition process and meeting unnecessary demands of the local communities.

Although the government had implemented one door system to facilitate investment in large projects, the investors and developers have to make rounds of ministries to get approval for various assessments and reports, they said to PM Prachanda.

CEO of the IBN Sushil Bhatta briefed the Prime Minister on project development and management, investment promotion, institutional development, and coordination collaboration and partnerships in line with the Public Private Partnership and Investment Act, 2019 and Strategic Plan of IBN.

Published in The Rising Nepal daily on 18 March 2023.      

Buddha Air, Qatar Airways bag ‘Best Airlines of the Year’ award

Kathmandu, Mar. 17

Buddha Air and Qatar Airways have bagged the Best Airlines of the Year award for 2022 on domestic and international category respectively.

Buddha Air's Birendra Bahadur Basnet also became the CEO of the year.

The awards were organised by the Best Aviation Awards Nepal (BAAN) earlier this week. It aimed at bringing Nepali tourism to the attention of media around the world and announced the awards in 16 different categories.

Likewise, Himalayan Airlines got the best airlines award on hybrid category and Emirates Airways on offline category. Nepal Airlines was honoured with the best national airlines and best service provider for aviation – it manages the ground handling at the Tribhuvan International Airport.

Other best are Qatar Airways for business class, airlines rewards programme, and air fare policy,  Fly Dubai for economy class, Air Arabia for cabin crew, Turkish Airlines for transit airport lounge, and Jazeera Airways for front desk support.

Similarly, Sarik Bogati of Qatar Airways received the best airlines manager of the year award while Society International got best general sales agent for foreign airlines.

According to the organisers, the winners were selected on the basis of results obtained from the combination of online voting by the public, data processing by the nomination board and the decision of the jury. Various business leaders, experts, bankers, tourism entrepreneurs and industrialists were included in the jury.

Nine internal airlines and 29 international airlines conducting flight services to and from Nepal were included in the competition. 

Published in The Rising Nepal daily on 18 March 2023.      

Shrestha elected new president of DBAN

 Kathmandu, Mar. 17

Suyog Shrestha, Chief Executive Officer of Shangri-La Development Bank, has been elected the president of Development Bankers Association of Nepal (DBAN).

Seventh Annual General Meeting of DBAN held in Chitwan on Friday unanimously elected him and other office bearers of the organisation, a statement issued by DBAN read.

The AGM elected Bodhraj Devkota, CEO of Mahalakshmi Development Bank, to the post of vice president, Ram Kumar Giri, CEO of Indus Development Bank, to secretary and Naresh Singh Bohra, CEO of Lumbini Development Bank, to the post of treasurer.

Likewise, Prakash Paudel, CEO of Shine Resunga Development Bank, Shri Chandra Bhatta, CEO of Jyoti Bikas Bank, and Dr. Indra Kattel, CEO of Excel Development Bank, are elected  as working committee members.

The newly elected working committee officials took the oath of office on Friday itself.

Outgoing President of DBAN Pradyuman Pokharel said that the banking sector is currently going through a very difficult situation due to various factors including the COVID-19, Russia-Ukraine war and rising inflation. He stressed the need for making risk management more effective and customer service more agile.

Newly elected president Suyog Shrestha expressed his commitment to work for the rights and interests of development banks with the help of all.

"Today's development banks are similar to yesterday's commercial banks from the business perspective. Even though the number of development banks has come down to 17 from 90, it is our achievement that they have been able to maintain their market share," he said. 

Published in The Rising Nepal daily on 18 March 2023.     

Nepal expects Chinese assistance in infrastructure sector: DPM Shrestha

Kathmandu, Mar. 16

Deputy Prime Minister and Minister for Physical Infrastructure and Transport, Narayan Kaji Shrestha said that Nepal expects financial support from China in the field of infrastructure and industry development.

Addressing a seminar on 'China's Belt and Road Initiative (BRI) at ten: Nepal's Experience' organised by Friends of Silk Road Club – Nepal in the Capital on Thursday, he said that the government had expectations for financial and other forms of support from China in the areas of infrastructure development and industrial growth.

"Government is committed to the implementation of BRI projects in Nepal," added DPM Shrestha.

BRI is expected to deliver critical infrastructure that Nepal needs for connectivity, trade, tourism and industrial sector development. "We desperately need infrastructure to promote trade and investment. We don't want to be in the debt-trap and wouldn't allow any party to push us for that while at the same time we don't buy any wrong narrative on it," he said.

Speaking on the occasion, former Minister for Foreign Affairs, Pradeep Kumar Gyawali, who is also the Deputy Secretary General of the CPN-UML, said that Nepal's preparation in terms of project development and prioritisation is poor. "We need to be proactive in terms of our development and economic need to make their implementation more effective," he said.

Gyawali also suggested that now is the time for Nepal to sit with China to finalise the funding modality of projects under the BRI.

As a landlocked country, Nepal is facing multiple challenges in trade, tourism and industry sectors. Its transportation cost is about 20 per cent higher which makes goods produced here more expensive. "The BRI can help us in reducing the transportation cost of made in Nepal goods with the development of critical infrastructure. We need to overcome the shortcomings in the connectivity," he said.  

According to Gyawali, there is need to making effective connection and interaction with India and China – the economies that are making strides in the areas of economic growth and development and are among the largest economies globally.

Ambassador of China to Nepal, Chen Song, said that China is willing to share the development dividend with the developing countries. He criticised the 'Chinese debt-trap' terming it as a 'narrative-trap' in essence.

Citing the completion of China-Nepal Optical Fibre Network, upgrading of Arniko Highway, and initiation of Ratamate-Rasuwa-Keyrung transmission line project, and trans-Himalayan railway project, Chen said that the cooperation between the two countries in development and infrastructure sector has been intensified.

"China's FDI accounts for almost half of the total FDI Nepal received and the northern neighbour has topped the list for the last five consecutive years," he said. Ambassador Chen also said that regular hosting of cultural activities and other events had further solidified people-to-people relations between the two countries.

China is the second largest trade partner of Nepal, however, in the wake of the coronavirus pandemic, export to China has remained pathetic despite it allowing duty-free entry of 98 per cent of goods produced in Nepal.

Stating that the two countries need to foster synergy, Chen said that China is willing to support Nepal in infrastructure building, establishment of industries and human resource development.

Former Ambassador of Nepal to China, Leela Mani Paudyal, who also served as the Chief Secretary of the Government of Nepal, said that there is a need for Nepal to adopt an indigenous development model in infrastructure and other areas.

"Railways should be our strategic project in order to connect the country to the global supply and transportation network. Nepal-China cross-border railway should be our flagship project in order to make the two countries interdependent," said Paudyal.

He maintained that China had promised for a common initiative for the collaborative development. Asian Infrastructure Investment Bank (AIIB) was founded in line with the same philosophy to finance infrastructure development.

China aims at developing infrastructure that would ultimately facilitate trade and business in the region so Nepal needs to reap the benefits from the initiative, said Paudyal.

In 2018, Nepal had proposed eight projects under the BRI to China: cross-border railway, Madan Bhandari University, Tokha-Chhahare Road and tunnel, Khutiya-Dipayal Road, Kohalpur-Surkhet Road upgrading project, Sunkoshi-Marin Diversion Multipurpose Diversion Project, Nepal-China Cross-border Economic Zone, and Kimathanka Upper Arun Hydroelectricity Project.

Sunkoshi-Marin is being developed by Nepal itself and the government has allocated budget to develop this project while Khutiya-Dipayal and Kohalpur-Surkhet road projects are not forwarded by Nepal. It's been six years since Nepal signed a pact for BRI.

Nepal has failed to get benefits from the AIIB while India, which is not in the BRI, has benefitted more, said Paudyal.

He suggested that Nepal must be aware of the purpose of the borrowing from the foreign countries as well as bilateral and multilateral institutions like the World Bank. "It’s our responsibility to make maximum utilisation of the loan that we obtain," he said. 

Published in The Rising Nepal daily on 17 March 2023.    

Govt to provide labour permit from missions abroad

 Kathmandu, Mar. 15

Ministry of Labour, Employment and Social Security (MoLESS) has implemented a system to provide labour permit from the Nepali missions in the labour destination country.

Considering the troubles Nepali migrant workers have been facing in the foreign land due to the obligation to return to Nepal to renew or obtain the labour permit and the workers who died while their permit was expired were deprived of the relief and rescue facilities, the government has decided to issue labour permit from the missions of the destination country, the ministry informed in a statement issued on Wednesday.

The MoLESS informed that it has been implementing a facility to make arrangements to use Nepali banking facility and deposit the fees in Nepali bank accounts via mobile app.

The labour permit would be issued on the basis of the employment agreement between the employer and worker in the destination country and it would be provided for the total term mentioned in the agreement. 

Published in The Rising Nepal daily on 16 March 2023.    

Minister Kirati stresses product development, diversification to recover tourism

 Kathmandu, Mar. 15

A three-day regional workshop on measuring tourism kicked off in the Capital on Wednesday with the participation of representatives from about 35 countries in the Asia and the Pacific region.  

The 'UNWTO Regional Workshop of Measuring Tourism: Better data for better tourism in Asia and the Pacific' is jointly organised by the United Nations World Tourism Orgnaisation (UNWTO), Ministry of Culture, Tourism and Civil Aviation (MoCTCA) and Nepal Tourism Board (NTB).

Speaking at the inaugural session of the workshop, Minister for Culture, Tourism and Civil Aviation Sudan Kirati said that there was a dearth of statistics needed to design plans and programmes in tourism sector.

 "Mega programmes and plans that are not based on factual real-time data and statistics have proved to be ineffective and impractical," he said.

He said that to ensure prompt and steady recovery of tourism, there is a need for development through product development and diversification. "Regarding the same, there is a necessity for continuous research on new tourism products and identification, increase of investment, integrated tourism infrastructure development, ensuring that the benefits of tourism reach community and grass-roots level," said Minister Kirati.

The Tourism Minister informed that with the realisation of the need for streamlining and mining data through integrated and reliable sources, the government has initiated the implementation of 'tourism satellite account' system with the support from the UNDP.

"As we progress towards a digitised age, access of real-time data and statistics and in-depth analysis of the same, are most essential in the tourism sector as well," he said.

Beka Jakeli, Director of External Relations, UNWTO, said that without proper statistical system, destinations cannot survive, there should be better understanding of the importance of data.

"Impact of tourism on economy, society and environment is immense, and we need to measure it in order to tell its story," he said while airing the common aspirations to forge collaborations among the nations and organisations to develop tourism sector and create strong database.

Ambassador of Nepal to Spain, Dr. Sharmila Parajuli Dhakal, who is also accredited to the UNWTO, said that the Nepal's mission in Madrid has a goal to attract 100,000 Spaniards to Nepal in a year. 

She stated that policymakers and tourism entrepreneurs need good data to make informed and impactful decisions.

"We must focus on rebranding and new market strategies to market our products including adventure tourism, eco-tourism, religious/spiritual as well as health/education tourism among others," she said.

Dr. Ram Kumar Phuyal, a Member of the National Planning Commission, said that Nepal has plans and strategies to diversify tourism destinations some of which are inscribed in the current five-year plan as well.

"There is a need for a better publicity and promotions of tourism destinations and products while collaborating with other sectors like health and education," he said.

According to him, creating modern tourism infrastructure in line with public-private cooperative and partnership is the national priority.

“Our target is to increase per tourist per day cost to US$100 from the current $45. However, since, the current five-year plan is nearing its end, there has been very little progress towards achieving this goal,” he said.  

Published in The Rising Nepal daily on 16 March 2023.    

Nepal holds good investment opportunities: PM Prachanda

Kathmandu, Mar. 14

Vice Chairman of China Council for the Promotion of Investment and Trade (CCPIT), Zhang Shaogang, has said that Nepal and China should continue to expand bilateral trade between the two countries and give full play to the trade promotion organisations.

"There are many attractive products in Nepal, but their visibility is yet to be felt among Chinese consumers," he said while speaking at the Nepal-China Investment and Business Forum 2023, orgnaised by Confederation of Nepalese Industries (CNI) and CCPIT in the Capital on Tuesday.

A 60-member Chinese delegation led by Zhang is in Kathmandu to explore the opportunities in trade and investment in Nepal. This is probably the largest business delegation to Nepal from the northern neighbour since the advent of coronavirus pandemic in the end of 2019.

According to him, as China’s largest trade and investment promotion agency, CCPIT will continue to host more trade and investment promotion events, in order to boost imports of Nepal’s premium products, including artworks, wool products, garments, agricultural products, tea and Chinese herbs.

According to the organisers, the business forum aimed to further consolidate the foundation for bilateral economic and trade cooperation and promote the Chinese and Nepali business communities to embark on a new journey.

Zhang also stressed on further expanding areas of investment cooperation in infrastructure development including power stations, communications and roads.

He suggested Nepal to get benefit from China's sound industrial system and advantages in capital, technology and experience. He expressed his hopes that the businesses from the two countries will actively expand investment cooperation in accordance with market-oriented principles. In this regard, CCPIT is ready to work with Nepali private sector organisations like CNI, Zhang said.

Addressing the forum as the keynote speaker, Prime Minister Pushpa Kamal Dahal Prachanda said that Nepal wants an easy and more generous market access to China and other neighbouring countries.

"We believe that phenomenal economic progress achieved by our neighbours would open up wider avenues of opportunity for Nepal to grow and prosper through expansion of export trade and enhanced level of inward investment," he said.

PM Prachanda said to the Chinese businesspersons that Nepal had made major reforms in its investment regime protecting foreign direct investment and easing the process.

"Our tax slabs are one of the lowest and our position is fairly good in ease of doing business. Investment in any sector is profitable in our country given the nascent stage of our industrial development," he informed while stating that profitable areas of investment include hydropower, industrial manufacturing, infrastructure development, tourism, agriculture, minerals, and mining, among others.

Likewise, Nepal's laws permit full repatriation of income earned from investment. Foreign companies registered in Nepal can purchase, own and sell land. No discrimination is made between domestic and foreign investors. There is no policy of nationalization of private industry. The other factor that makes business competitive in Nepal is the availability of a less expensive workforce, reformed labour laws, and improved industrial relations. “We are seriously working on further simplifying the procedures and fully operartionalise the one-stop service,” said the Prime Minister.

He also urged the Chinese investors to invest in the areas of technology. "We need significant investment in infrastructure and maximise the utilisation of technology in development and post-LDC graduation strategy," he said.

PM Prachanda also said that as China lifts restrictions for out-bound movement, Nepal expected more tourists from there. ‘Enhanced level of economic engagement' with people-to-people contact, opening of border, cross-border transmission line and other infrastructure are the priority areas for Nepal, according to him.

He also said that cross-border connectivity is vital for enhancing economic partnership. Nepal is committed to develop infrastructure at Nepal-China border including dry ports, roads and laboratories. Trade is the engine of growth and our future prosperity largely depends of our capacity to produce and trade more.

"Our two governments have been discussing the establishment of cross-border economic zones and opening of more border trading points. Our two countries are already linked by optical fiber and the prospects of cross-border railways and transmission lines will help significantly improve our economic ties in the coming years," he said.

Ambassador of China to Nepal, Chen Song, said that China remains as the second largest trading partner of Nepal and the bilateral trade between the two nations should be enhanced.

Pledging that he would encourage Chinese enterprises to come to Nepal and invest here, he said that expansion of economic ties between the two countries is further deepening the friendly relations.

He also invited Nepal to expand its trade promotion in China.

Vishnu Kumar Agrawal, President of CNI, said that Nepal expected an influx of Chinese tourists as the northern neighbour opened its borders for outbound tourism. We would like more Chinese investors in both trade and service sectors, he said. 

Published in The Rising Nepal daily on 15 March 2023.   

Sagarmatha, Lumbini Insurance merge

Kathmandu, Apr. 14

Sagarmatha Insurance Company Ltd. and Lumbini General Insurance Company Ltd. have started joint operation from Monday.

The two companies have merged into one to create a company named 'Sagarmatha Lumbini Insurance Company Limited'. On the occasion of the launching of integrated operations, a special pooja and programme was organised at the head office of the company.

Meanwhile, the first meeting of the board of directors of the new company has formed a fresh board of directors including three directors each from the erstwhile two companies. From the representatives of the former Sagarmatha Insurance, Ajith R. Gunawardane, Siddartha Mani Rajbhandari and Gajendra Lal Shrestha are chosen as the directors. Likewise, from the representatives of the former Lumbini General Insurance, Manohar Das Mul, Arun Raj Shrestha and Kamal Bhattarai are included on the board.

Likewise, Manohar Das Mul has been elected as the chairman of the new company. He took the oath of office from the Chairman of the Nepal Insurance Authority, Surya Prasad Silwal on Monday. 

Published in The Rising Nepal daily on 15 March 2023.  

Realme distributes scooters to best sales outlets

Kathmandu, Mar. 14

Realme, producer of smartphone and accessories, has distributed scooters to its business partners. Under the retail scheme brought on the occasion of this year’s Dashain, 21 highest-performing trade partners were awarded with a TVS Ntorq scooter each.

Seven out of 21 scooters were distributed on Sunday, 12 March at the TVS showroom in Naxal, while the rest will be distributed at the respective locations, the company informed in a statement.

According to the company, the scooter winners are DG Multibrand Showroom, Unique Mobile Hub, Khulal Trade Link, PR Traders, Kalinchok Mobile, Samip Mobile, and New Mandali Enterprises from Kathmandu, Ambe Mobile and Electronics from Damak, Gaurav Electronics from Baglung, and New Unique Watch and Mobile Centre from Hetauda.

Likewise, Mtech, Om Mobile Sales and Service, Sunil Mobile, Samsung Mobile and Electronic from Janakpur, Sujit Mobile Centre and Shree Ganesh Mobile Centre from Birgunj, Kiran Mobile Centre from Nepalgunj, New Simran Traders and New Rameswaram Suppliers from Dhangadhi, New Saviog Mobile Ship from Dang, and Nischal Mobile Centre from Butwal are the other winners.

Published in The Rising Nepal daily on 15 March 2023. 

PM Prachanda rebukes contractors over sluggish, substandard construction works

Kathmandu, Mar. 12

Prime Minister Pushpa Kamal Dahal Prachanda has criticised contractors' tendency of accepting the contract of construction work but not completing it on time, not delivering the expected quality, and getting the deadline extended and adding to the cost.

He said that government is also aware of the public complaints about the poor performance or inaction by the contractors.

"We have seen public posting 'contractor lost' on social media after the contractor of the project of their concern fled from the site leaving the project incomplete. It shows the picture of the construction sector in the country," he said while addressing the inaugural session of the 24^th General Assembly of the Federation of Contractors Associations of Nepal (FCAN) in the Capital on Sunday.

He demanded that the construction of public infrastructure like national highways, hydroelectricity projects, water supply and other projects should be completed on time with the defined quality while remaining within the estimated budget.

Prime Minister Prachanda inquired the construction entrepreneurs whether they have an action plan or policy to improve their shortcoming in terms of quality of construction and building of reliable infrastructure in time.

Stating that all public construction should be developed at the specified cost and at the same period if we have to achieve the goal of national development, the Prime Minister also suggested the FCAN to formulate an action plan to address the lacking in the part of the contractors while pledging government commitment to improve the governance system in the area of public construction and help the private sector in resolving their problems.

He pledged to ensure participation of private sector entrepreneurs while amending the laws and policies related to construction and contract. Probably the laws and policies on public procurement and construction are the most frequently amended ones but despite that neither the private sector is satisfied nor the public construction and development work is moving ahead smoothly.

Government is seriously seeking the long-term solutions for the cost and time overrun of the projects due to the crisis like COVID-19 and Russia-Ukraine war, said PM Prachanda.

Meanwhile, he maintained that the economic condition of the country is not so sound but there is not a situation to panic since the nation is gradually moving ahead on the path of growth.

Pledging to increase capital expenditure from the government, he said that the government is serious about addressing the challenges faced by contractors due to lack of money supply in order to instill hope in the business and economy.

Speaking at the same programme, Deputy Prime Minister and Minister of Physical Infrastructure and Transport, Narayan Kaji Shrestha, said that he will move forward together with the businesspersons but not be in 'complicity' with them.

Stating that he is aware of the problems of the construction entrepreneurs, he said that policy initiatives are being taken to solve the problems. DPM Shrestha said that reducing the trade deficit while increasing the capital expenditure is the main demand of the situation.

Similarly, Ravi Singh, President of FCAN, drawing the government's attention to the demands of construction professionals, said that there is no option but to go on strike if the legitimate demands are not met.

He urged the Prime Minister to facilitate in the payment of the contractors undertaking capital projects in the country.

Speaking on the occasion, Jip Chhiring Lama, former lawmaker and past president of FCAN, suggested that the project chiefs should not be transferred before the completion of the project.

According to him, 90 per cent contractors in the country are troubled by various problems created by recent crises.

Likewise, President of Confederation of Nepalese Industries, Vishnu Kumar Agrawal, said that cement and steel production has gone down by about 70 per cent while business of heavy equipment has remained just about 20 per cent of usual times.

Boosting capital expenditure will help to address many problems troubling the economy in recent times, he said.

According to business persons, obstruction in the construction work not only impacts the contractors but also the domestic industries in the areas of cement, steel, electricity and other construction materials. 

Published in The Rising Nepal daily on 13 March 2023. 

Experts stress uplifting of agro sector

Kathmandu, Mar. 12

Experts and stakeholders have said that there is a need to improve the condition of agriculture and farmers to lift the country from the current economic situation by enhancing product and productivity.

Speaking at the 22^nd establishment day of Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBLBSL), a microfinance company, in Kathmandu on Saturday afternoon, they suggested that if the production and productivity of the agricultural sector is increased and attention is paid to the storage, processing and marketing of agricultural products, it will open an avenue for economic improvement and growth.

Shri Krishna Upadhyay, former chairman and CEO of Agriculture Development Bank Limited (ADBL), pointed out the need to pay attention not only to investment in the agricultural sector but also to marketing of the produce.

He emphasised that the government should identify such cooperatives and implement agricultural programmes to increase the enthusiasm of the farmers who are the members of agricultural cooperatives that have been doing exemplary work especially in rural areas.

"All the cooperatives don't have problems, they also have potential and have proven themselves to be successful, and the time has come to identify such cooperatives," he said while emphasizing that having same viewpoint for the cooperatives and microfinance is not appropriate and it should be corrected.

He said that the knowledge, skills, capital, technology and awareness provided by Sana Kisan Bikas Laghubitta to the member farmers through cooperatives have greatly contributed to the leadership development of the poor, backward classes, Dalits, minorities and women.

Likewise, Chairman of SKBLBSL, Khem Bahadur Pathak, expressed dissatisfaction with the analysis made considering the microfinance and cooperatives as the same.

He said that the propaganda that is going on saying that all sectors are wrong in treating the problem where there is a problem is having a negative effect on them. He clarified that Sana Kisan has been providing services to member farmers through Sana Kisan Cooperative and claimed that there is no problem in the microfinance as well as the cooperatives promoted by the company.

"Now this microfinance is providing its services through 1,459 partners small farmer agricultural cooperatives. There is no problem in the company and its network as stated in the market," said Pathak.

According to him, Sana Kisan has been focusing on improving the rural economy. They are working on the economic and social transformation of Rautes, Kusundas, Musahars, Bankariyas, Dalits, minorities and women who are left behind in the community.

While making it clear that there is no problem in the small farmer agricultural cooperatives run by the farmers with their participation, President Pathak expressed his commitment that they are ready to solve any such problem immediately.

Chairman Pathak claimed that small farmers have become a popular organization in villages for making poor farmers rich, bringing backward people to the mainstream, providing water, roads, sanitation, etc. through community activities.

Similarly, CEO of ADBL, Govinda Gurung, praised the role played by Sana Kisan in turning Nepal's farmers in remote areas into entrepreneurs. He pointed out the need to work more on motivating farmers to start production, processing, storage and connecting to the market.

He also emphasised the need to increase access of farmers to the SKBLBSL. He also said that by developing the capacity of the members, especially the youth, there is a possibility to create a good income environment in the field of agriculture and animal husbandry in Nepal.

CEO of the company Dr. Shivaram Prasad Koirala stressed that microfinance institutions should be evaluated on the basis of their performance. He claimed that the small farmer programme which has reached more than 1.07 million households in 76 districts of Nepal has been successful in improving the rural economy of Nepal.

According to him, the members of the company have started tea, milk, dairy, oil, rice and other enterprises individually and collectively through the cooperative.

Published in The Rising Nepal daily on 13 March 2023.