HLERC suggests empowered teams' deployment to boost capital expenditure

Kathmandu, Jan. 8 

The High-Level Economic Reform Commission (HLERC) has recommended the government to deploy empowered teams to regularly monitor and resolve issues on-site for all development projects with budget allocation above Rs. 100 million in order to increase capital expenditure in the remaining months of the current fiscal year 2024/25.

Chairperson of the HLERC Rameshore Khanal submitted the interim report to Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel on Wednesday. 

The Commission has recommended prioritising payments for completed construction works without initiating new contracts in the current fiscal year and incorporating new projects in the next year's budget only if commitments for ongoing multi-year contracts are met.

To accelerate capital expenditure, the HLERC has suggested expediting reconstruction of infrastructure damaged by disasters including floods, landslides and Jajarkot earthquake, initiating fast-track land acquisition compensation for government projects, and facilitating smoother entry for Indian tourists via overland routes. 

Likewise, increasing capital expenditure in the remaining period of current fiscal year, ensuring prompt payment of government liabilities and other dues, supporting genuinely distressed borrowers in the financial sector, and creating policy framework to regulate trade credit effectively are also the major suggestions. 

According to the Commission, there is a need to reassess the subsidy programmes as well as subsidy schemes under concessional loan facilities. Similarly, resources should be allocated so that they could make positive impact on production and employment. It suggested increasing health insurance premiums as well as the co-payment ratios – which is now set at 10 per cent of the total treatment cost.

It also has recommended addressing the increasing non-banking assets and depressed real estate markets through the establishment of an asset management company under public-private partnership model. It asked to allow one-year loan restructure for the businesses and industries that were viable before the COVID-19 pandemic era but are in temporary trouble now. 

Addressing the issues in the cooperative sector has also been the priority of the HLERC. It suggested addressing the problems of sick cooperatives, restricting the operational scope of savings and credit cooperatives to a single local government's jurisdiction and barring organistions from becoming the members of cooperatives. 

It has also suggested setting single-borrower limit to restrict total loans per individual below 10 per cent of a cooperatives total share capital. Similarly, suggestions include prohibiting loans exceeding permissible limits through multiple promissory notes, and enforcing legal provisions similar to the single-borrower limits in financial institutions.

The government had formed the HLERC three months ago comprising experts and private sector representatives, to provide strategic recommendations for economic revival. 

Aadhyanta to provide loans smallholder farmers

Kathmandu, Jan. 10

Aadhyanta, a private equity and venture capital firm, has announced Rs. 20 million investment into DV Excellus, an agri-fintech company.

 This funding will support the company's flagship platform, Kheti, which offers collateral-free loans up to Rs. 200,000 for smallholder farmers, the company informed in a statement on Friday.

The Kheti app provides a comprehensive suite of agricultural services and financial products, empowering farmers to access quality inputs and transition towards more commercially viable farming practices.

This move is a key milestone for the Commercial Agriculture for Smallholders and Agribusiness (CASA) programme, which is supported by the Foreign Commonwealth Development Office (FCDO) and implemented in Nepal by Swisscontact, read the statement.

The CASA programme has been instrumental in attracting PEVC investments into Nepal’s agricultural sector, helping bridge the gap between high-impact agribusinesses and private sector investment. "This investment demonstrates the power of collaboration in driving systemic change," said Manish Bikram Shah, CASA Country Manager for Nepal.

Agriculture accounts for about 24 per cent of Nepal's GDP, yet smallholder farmers often face significant barriers in accessing financing and quality inputs.

Manoj Poudel, Managing Director of Aadhyanta, said that supporting agri-tech innovations like Kheti is vital to overcoming these challenges and unlocking the sector's growth potential.

Since its launch, DV Excellus has disbursed over Rs. 150 million in loans to more than 1,000 farmers and currently serves over 15,000 active farmers.

 Published in The Rising Nepal daily on 11 January 2025. 

Govt urges Qatar and Egypt to help in securing Bipin's release

 Kathmandu, Jan. 10

The Government of Nepal has once again urged the governments of Qatar and Egypt to help in securing the release of Nepali student Bipin Joshi, who has been held captive by the Palestinian Hamas group since October 2023.

According to the Ministry of Foreign Affairs (MoFA) of Nepal, the appeal was made through the ambassadors of Egypt and Qatar to Nepal.

"Following reports that Hamas plans to release 34 captives, Nepal's Foreign Minister, Dr. Arzu Rana Deuba, reached out to the governments of Qatar and Egypt—both mediators in discussions with Hamas—requesting their support in freeing Bipin," the MoFA said. 

Bipin was among those abducted by Hamas during the October 2023 attack on Israeli soil, where the Palestinian group killed over 1,000 people, including 10 Nepalis. Nepal has been pursuing diplomatic efforts for his release since then.

In a meeting with Egypt’s Ambassador to Nepal, Noha Hamdy Ahmed ElGebaly at the MoFA on Friday, she reiterated the request. Similarly, the Foreign Minister spoke to Qatar’s Ambassador to Nepal, Mishal Mohammed Al-Ansari over the telephone seeking his government’s intervention. Al-Ansari who is currently in Qatar assured FM Dr. Rana that he would discuss the matter with Qatar’s Foreign Minister and provide updates.

Hamas reportedly intends to release elderly individuals, women, children, and those in fragile health conditions as part of the first phase of their plan. Minister Dr. Rana urged both governments to include Bipin in this group for release.

Last Wednesday, Dr. Deuba also made a similar appeal to the Israeli government through Israel's Ambassador to Nepal, Shmulik Arie Bass.

 Published in The Rising Nepal daily on 11 January 2025. 

Safe motherhood is responsibility of family, society: FM Dr. Rana

Kathmandu, Dec. 9

Safe Motherhood Network Federation (SMNF) Nepal has distributed 1,090 blankets to pregnant women and new mothers affected by floods in six local municipalities of Kavrepalanchok district.

Minister for Foreign Affairs, Dr. Arzu Rana Deuba handed over the blankets to them during a programme held in Dhulikhel on Thursday.

This relief effort follows the severe damage caused by heavy rainfall earlier this year, particularly in areas like Roshi Khola and Bethanchok. Floods swept away homes and settlements, leaving pregnant women and new mothers in vulnerable conditions.

The blankets were distributed through local representatives to provide much-needed support to these women, particularly those within three months of childbirth, Secretariat of FM Dr. Rana informed in a statement.

Speaking at the event, FM Dr. Rana said that the government is actively working to provide assistance and relief to citizens in need. She said hat Nepal faces increasing risks and challenges due to climate change and is advocating for global attention to these issues at international forums.

The Foreign Minister underscored the disproportionate impact of climate change on women and children in Nepal, urging families, communities, and the nation to recognise their heightened vulnerability. She reaffirmed her commitment to work for ensuring climate justice for Nepal.

Stating that over half of Nepal’s population comprises women yet opportunities for them remain limited, FM Dr. Rana said that safe motherhood begins at home and within communities. “The primary responsibility for ensuring safe motherhood lies with families and society. The government’s role is to implement policies, but everyone must work together to support women,” she said.

Reflecting on her personal experience with childbirth challenges, Dr. Rana recalled founding the Safe Motherhood Network to advocate for maternal health. She said that the state should prioritise reproductive health and safe motherhood, and called on families and communities to offer their support to make these efforts successful.

 Published in The Rising Nepal daily on 10 January 2025. 

Rai assumes responsibility of Foreign Secretary

Kathmandu, Jan. 9

Amrit Bahadur Rai has officially assumed the position of Foreign Secretary of Nepal, effective from Wednesday. Earlier, he was serving as the acting foreign secretary at the Ministry of Foreign Affairs (MoFA).

He has an extensive career in diplomacy, global governance as well as domestic governance.  He joined the Civil Service in 1996 and entered into the Foreign Service in 2005 as an Under Secretary.

According to the MoFA, Rai’s distinguished career in the Civil and Foreign Service is marked by his steadfast commitment to advancing Nepal’s national interests, strengthening global partnerships and promoting Nepal's presence on the international stage.

Since joining the Nepal Civil Service in 1996 and the Foreign Service in 2005, Rai has served in several high-profile capacities. He served as Division Chief of the United Nations, International Organisations, and International Law Division at the MoFA where he also worked as the spokesperson for the Ministry.

Rai’s international diplomatic experience includes Nepal’s Ambassador and Permanent Representative to the United Nations in New York (2019–2023), where he held leadership roles such as Vice-President of the UN General Assembly, Chair of the Economic and Financial Committee, and Chair of the Global Coordination Bureau for Least Developed Countries.

He also served as Nepal’s Ambassador to South Africa (2014–2018), with concurrent accreditation to 18 other countries, said MoFA.

"His contributions to multilateral diplomacy, particularly in advocating for the interests of least developed and landlocked developing countries, have significantly bolstered the country’s image and national interests in international forums," read the statement.

 Published in The Rising Nepal daily on 10 January 2025. 

NAFIJ arranges group accident insurance coverage for members

Kathmandu, Jan. 9

Nepal Association of Financial Journalists (NAFIJ) has arranged group accident insurance coverage worth Rs. 165 million for its 235 members and advisors of the organisation.

To implement this scheme – insurance coverage of Rs. 700,000 per member, NAFIJ signed an agreement with Sagarmatha Lumbini Insurance (SALICO) and Siddartha Premier Insurance on Wednesday.

The agreement was signed by Chunki Chhetry, CEO of SALICO, Birendra Bahadur Baidawar, CEO of Siddhartha Insurance, and NAFIJ President Menuka Karki.

Under the agreement, each NAFIJ member is insured for Rs. 700,000 to mitigate risks associated with their professional field activities. Speaking on the occasion, Karki said that journalists work under challenging conditions, and this insurance ensures support in the unfortunate event of an accident.

Likewise, Chhetry expressed confidence that the group accident insurance would enhance journalists’ safety and contribute to the dissemination of reliable information.

Similarly, Baidawar said that the insurance arrangement would motivate journalists to undertake field assignments with greater confidence.

 Published in The Rising Nepal daily on 10 January 2025. 

SKBL to distribute 14% bonus share

Kathmandu, Jan. 9

Sana Kisan Bikash Laghubitta Bittiya Sanstha Limited, a microfinance company, is set to distribute 14 per cent bonus shares to its shareholders.

The 23^rd Annual General Meeting of the company held in Kathmandu on Tuesday has approved the proposal of its Chairman Khem Bahadur Pathak to distribute bonus shares of 13.3 per cent alongside 0.7 per cent cash dividend for tax purposes from the profits of the last Fiscal Year 2023/24.

According to the micro-finance institution, it recorded a net profit of Rs. Rs. 921.9 million in the FY 2023/24, an increase of 19.18 per cent from Rs. 773.5 million in the fiscal year 2022/23. Similarly, its total operating income grew by 31 per cent from Rs. 1.66 billion in 2022/23 to Rs. 2.19 billion last year.

The SKBL is operating in all 77 districts of Nepal, and it collaborates with 1,692 partner organisations spread across 546 local levels. "It has successfully provided microfinance services to 1,233,684 families, of which 12 per cent are Dalits, 34 per cent are from indigenous groups, and 54 per cent belong to other communities," the company said in a statement.

Women constitute about 80 per cent of the beneficiaries thus contributing to women's financial inclusion.

 Published in The Rising Nepal daily on 10 January 2025. 

The Cliff ready to launch mega troll

Kathmandu, Jan. 9

‘The Cliff’ in Kushma of Parbat district is all set to launch the mega troll adventure facility which the company touts as the 'world’s longest and highest'.

Standing at a height of 255 metres, the mega troll is 1,228 meters in length, the company said in a statement.

According to Raju Karki, Chairman of The Cliff, it can accommodate up to three people at once, allowing participants to ride solo or alongside a partner.  The mega troll will reach speeds of up to 140 km per hour.

“The mega troll falls under the category of extreme adventure activities, blending elements of a zipline and a rollercoaster,” said Karki.

The construction of the new adventure facility began a year ago and the company is working to launch it within the next two weeks. The final phase of testing is currently underway.

In addition to this latest attraction, The Cliff is offering the world’s second-highest bungee jump, swing, sky cycling and a fully equipped resort. The introduction of the mega troll aims to further enhance the adventure tourism experience.

According to the company, the ride offers breathtaking views of the Kaligandaki River. “We are thrilled to provide this new experience for visitors. We believe this attraction will boost not only tourism but also contribute to economic and social development in the region” said Karki. 

 Published in The Rising Nepal daily on 10 January 2025.  

Consumer price inflation, foreign reserves up

Kathmandu, Jan. 10

The rate of consumer price inflation has gone up to 6.05 per cent in mid-December 2024 compared to 4.95 per cent during the same period in 2023.

Inflation reached the highest in Koshi Province at 7.36 per cent, followed by Madhes at 6.77 per cent and Sudurpaschim at 6.66 per cent, according to the monthly economic and financial status report published by the Nepal Rastra Bank (NRB) on Friday.

 Among the provinces, it remained the lowest – 4.19 per cent - in Karnali, followed by 4.81 per cent in Gandaki, 5.53 in Lumbini and 5.84 in Bagmati.

Food and beverage pushed the inflation rates up with vegetables, pulses and cereals leading the category. Food and beverage inflation stood at 9.99 per cent whereas non-food and service inflation stood at 3.92 per cent in mid-December. During the same period in the previous year, the price indices of these groups had increased by 5.00 per cent and 4.92 per cent, respectively.

The year-on-year price index of the vegetable sub-category increased by 43.05 per cent, pulses and legumes by 10.66 per cent, cereal grains and their products by 9.70 per cent and ghee and oil by 9.39 per cent while the price index of the spices sub-category decreased by 1.18 per cent and sugar and related products by 0.83 per cent.

Under the non-food and services category, y-o-y price index of the miscellaneous goods and services sub-category increased by 7.98 per cent, alcoholic drinks by 7.01 per cent, clothes and footwear by 6.75 per cent and furnishing and household equipment by 5.29 per cent.

Likewise, the foreign exchange reserves increased by 11.4 per cent to Rs. 2273.26 billion in mid-December 2024 from Rs. 2041.10 billion in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased by 10.0 per cent to Rs.2033.27 billion in mid-December 2024 from Rs.1848.55 billion in mid-July 2024. Reserves held by banks and financial institutions (except NRB) increased by 24.6 per cent to Rs. 240 billion in mid-December 2024 from Rs.192.55 billion in mid-July 2024.

Similarly, the share of Indian currency in total reserves stood at 22.8 per cent in mid-December 2024.

According to the NRB, based on the imports of five months of 2024/25, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 17.6 months and merchandise and services imports of 14.6 months.

The ratio of reserves to Gross Domestic Product and reserves to imports stood at 39.8 per cent and 121.6 per cent respectively in mid-December 2024. Such ratios were 35.8 per cent and 108.6 per cent in mid-July 2024.

Meanwhile, remittance inflows increased by 4.4 per cent to Rs.640.43 billion in the review period compared to an increase of 24.2 per cent in the same period of the previous year. In US Dollar terms, remittance inflows increased by only 2.5 per cent to 4.73 billion compared to an increase of 21.1 per cent in the same period of the previous year.

Likewise, Balance of Payments (BOP) remained at a surplus of Rs. 225.34 billion in the review period compared to a surplus of Rs. 216.05 billion in the same period of the previous year.

Published in The Rising Nepal daily on 11 January 2025.  

Development Cooperation Policy on anvil

Kathmandu, Jan. 8

The government has prepared a draft of a new Development Cooperation Policy, 2081 with provisions for priority areas, focus on the mitigation of climate change impacts and definition of roles of all levels of government and their concerned agencies.

The policy will replace the existing Development Cooperation Policy, 2019. The Ministry of Finance (MoF) has published the draft to solicit suggestions and comments on the document from the experts and concerned stakeholders.

The proposed policy has accorded priority to almost all sectors of national development which is likely to result in the loss of focus.

Focus of the policy include infrastructure including energy, health and education, job creation, poverty alleviation, reconstruction and information technology, disaster management, climate change adaptation and mitigation, and even community capacity development.

Given the current size of development cooperation, around US$ 1.5 billion to US$ 2 billion from 2018/19 to 2021/22, growing areas of priority would create pressure to scatter funds across about two dozen areas.

However, the new development cooperation policy aims to mobilise development assistance in priority sectors and areas with high returns.

It also envisions to align the development assistance to achieving the Sustainable Development Goals (SDGs), and utilisation of climate finance for climate adaptation and mitigation. 

According to the draft of the policy, it's strategy is to enhance alignment between development assistance, and national priorities. Likewise, it plans to increase the capacity for effective utilisation of development assistance by focusing on budget support, programme-based assistance and sectoral aid.

Fostering the development of underprivileged areas, using climate finance to benefit Nepal under the principle of climate justice, addressing the gaps in national capacity and expertise, ensuring rapid mobilisation of disaster and humanitarian assistance when needed, and strengthening the autonomy and coordination among the various levels of government in development assistance mobilisation are also the strategies of the new policy.

Likewise, it has a provision to ensure that assistance mobilised through non-governmental organisations (NGOs) is effectively and transparently utilised in line with national needs and priorities.

Through the policy draft, the Government of Nepal has expressed commitment for effective mobilisation of development assistance. 

"The Government of Nepal is committed to effective assistance mobilisation, prioritising national needs, and aligning with global principles of human rights, democracy, rule of law, green, sustainable, and inclusive development, good governance, zero tolerance towards corruption, transparency, and accountability," it read.

It has also proposed local development partner meetings – twice a year or as per the need – to promote regular dialogue and coordination of the government with them. It will also work as the problem-solving mechanism.

According to the policy draft, the development partners need to identify thematic areas of cooperation through mutual agreement based on their comparative expertise and previous engagements.

It also includes a chapter on risk-minimisation strategy.

Finance Minister will chair the committee to guide the implementation of the new policy. The committee will have vice chairperson of the National Planning Commission and secretaries of Prime Minister's Office, MoF, Ministry of Law, Ministry of Physical Infrastructure and Ministry of Federal Affairs, auditor general and joint-secretary of the International Economic Cooperation Coordination Division at the MoF as its members. 

Published in The Rising Nepal daily on 9 January 2025.  

FM Rana urges Israeli envoy to prioritise release of Bipin Joshi

Kathmandu, Jan. 8

Foreign Affairs Minister of Nepal, Dr. Arzu Rana Deuba, has urged the Israeli government to prioritise the release of Bipin Joshi, a Nepali student who has been held captive by Hamas since October 2023.

During a courtesy meeting with Israeli Ambassador to Nepal, Shmulik Arie Bass, at the Ministry of Foreign Affairs (MoFA) on Wednesday, Minister Dr. Rana sought updates on Bipin’s status and requested the Israeli government to take swift action to secure his release.

Her request coincides with the reports that Hamas is preparing to release 34 individuals in their custody. FM Dr. Rana urged the Israeli government that Bipin’s release should be treated with special urgency, the MoFA informed in a statement.

Ambassador Bass informed the Foreign Minister that the Israeli government had previously provided Hamas with a list of vulnerable individuals, including elderly people, women, and children with fragile health conditions, requesting their release. Reports suggest that Hamas is preparing to release these individuals in the first phase.

In October 2023, Hamas attacked Israeli territory, killing over 1,000 people, including 10 Nepali nationals. The group also abducted several individuals including Joshi following the attack.

According to the MoFA, the Government of Nepal has continued its diplomatic efforts for Bipin’s release, leveraging bilateral and multilateral platforms, including the United Nations and other international and regional forums. FM Dr. Rana has consistently called on the international community to advocate for the safe release of Bipin and other hostages held by Hamas.

Published in The Rising Nepal daily on 9 January 2025.  

FNCCI appoints Amgain as its Honorary Representative for China

Kathmandu, Jan. 8

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has appointed Durga Prasad Amgain as its Honorary Representative for China.

FNCCI's Director General Gokarna Raj Awasthi issued a letter in this regard mentioning Amgain's significant contributions to strengthening trade and business relations between Nepal and China.

"Amgain has been instrumental in enhancing Nepal’s trade and investment profile in the region. His exceptional networking abilities and industry expertise have attracted substantial Foreign Direct Investment (FDI) into Nepal," read the letter.

The FNCCI praised Amgain's role in building strong relationships with prominent chambers of commerce in China, which has resulted in the signing of key Memorandums of Understanding (MOUs). These agreements have paved the way for knowledge-sharing, joint business ventures, and collaborative projects, it said.

Likewise, Amgain has led high-level business delegations between Nepal and China, creating valuable networking opportunities and identifying new avenues for collaboration. According to the letter, his deep understanding of Nepal’s regulatory frameworks and market conditions has provided crucial support to investors on both sides.

The appointment is expected to further strengthen Nepal-China economic relations, foster bilateral trade, and bring modern investment opportunities to Nepal.

Published in The Rising Nepal daily on 9 January 2025. 

Wood, furniture expo to be held from January 17

Kathmandu, Jan. 8

The 10^th Nepal Wood International Expo, along with the 5^th Nepal International Furniture Expo and the Nepal HomeTex and Home Décor International Expo, is set to take place on 17-19 January at the Bhrikutimandap Exhibition Centre in Kathmandu.

This international exhibition is being jointly organised by Media Space Solutions, Futurex Trade Fair and Events, and ETSIPL.

According to them, the event will feature over 100 stalls representing domestic and international brands. Companies specialising in furniture, plywood, timber tools, laminates, hardware, and home textiles will showcase their products and services. Dealers, sub-dealers, and retailers will also provide insights into the latest innovations and advancements in the wood and furniture industry.

"For the past nine years, this expo has been a significant platform for introducing cutting-edge technologies and products to the Nepali market," the organisers said in a statement.

This year’s event promises a broader participation of sectors, including furniture, plywood, laminates, home textiles, hardware, wood-related machinery and tools, furnishing materials, mattresses, raw materials, and finished products. The exhibition aims to connect global brands with the Nepali market and promote the adoption of modern technologies in local industries.

This exhibition has been instrumental in driving modernisation and growth in Nepal’s wood, furniture, and home textile industries, said the organisers. Informative seminars, interactive workshops, and live demonstrations will also be held at the venue.

According to the organisers, the expo will serve as a gateway for the adoption of globally successful practices and technologies, facilitating their availability to local businesses and industries.

Published in The Rising Nepal daily on 9 January 2025. 

NRN citizenship will be fully implemented: Home Minister Lekhak

 Kathmandu, Jan. 7

Minister for Home Affairs of Nepal, Ramesh Lekhak, has assured the Non-Resident Nepali Association (NRNA) that the issues related to the full implementation of NRN citizenship will be resolved soon.

Responding to the concerns of an NRNA delegation led by its President, Dr. Badri KC, Minister Lekhak expressed his commitment to addressing the complexities in implementing NRN citizenship during the upcoming winter session of parliament, the NRNA informed in a statement on Tuesday.

"The government is committed to resolving issues related to NRN citizenship. We will propose amendments to over a dozen laws to address problems in existing legislation, including immigration, land registration, company registration, banking, and other practical areas. Most of these issues will be resolved within this parliamentary session," he said.

Dr. KC had earlier expressed concerns over the lack of constitutional implementation of NRN citizenship leaving many NRNs disheartened. He said that despite being granted citizenship, procedural hurdles have prevented many from obtaining it.

He also pointed out that the absence of NRN citizenship poses challenges for investment in Nepal.

Likewise, Minister Lekhak said, "Instead of waiting for investors, the government should encourage the NRNs. Your decision to invest in your homeland is commendable, and we are working to address legislative barriers to facilitate this."

Dr. KC also raised the issue of identity cards for individuals of Nepali origin who have been foreign nationals for generations. Minister Lekhak responded positively, he said

According to him, discussions are underway to provide identity cards for individuals of Nepali origin and the government is positive about this initiative. The Ministry of Law is working on a separate identity card for individuals of Nepali origin who do not fall under the NRN definition. 

Published in The Rising Nepal daily on 8 January 2025. 

Nepal should aim to be an AI hub

Dr. Rajan Thapaliya is a Ph.D. in Data Science from the National University of California, USA. As a professor and founder/CEO of Data Jupiter, he has been involved in educating and skilling up computer engineers, data scientists and information technology. His company is rolling out a project to educate and train youth from remote areas of developing countries. He is in course of developing a game based on Nepali mountain in Solukhumbu as well. He has taught and inspired many students in the USA and other countries. Modnath Dhakal of The Rising Nepal caught up with Dr. Thapaliya while he is in a trip to Nepal to talk about the potential of Nepal in AI development and future course the country should take. Excerpts:

What is your assessment of the global AI scenario? How can common people relate it with data science?

In terms of technological development, the world has gone quite afar. It has been possible with the collective initiatives of multiple scientists and companies around the globe. Data science is about reaching to a conclusion through computer calculation or analysis. It is the foundation of AI (Artificial Intelligence). Data science and AI have interdependent relation. Data science is the heart of any business in this data-driven world.

 

You are working on a new project to provide technical skills to youths from the countries lagging in information and communication technology and advanced education on it. Could you highlight the project?

The project is being developed by Data Jupiter company and is in the planning for the past eight months. It is in the final phase of rolling out. We aim to provide free IT education to remotest parts in the world with certification and possible job assurance for the better performers. Students enrolled in Data Jupiter will have an opportunity to forge networks with the experts, professionals and professors from around the world so that they can explore jobs and other opportunities in any part of the world. They can work from where they are and earn a good amount of money while being at their home with their family. Knowledge and skills acquired under this project will not only empower them in their academic pursuits but also serve as valuable tools throughout their lives. It is an initiative that aims to help shaping the future of technology and inspire the next generation of innovators and thinkers. The system has already been tested and we are planning to launch the system within this January. We are approaching various governments and philanthropic organisations for financial support as we aim to provide 'free skill-based education' to the youth from backward areas. So far, we have collected US$80,000 and it should be above $200,000 within a year or so.

 

Nepal lacks any policy or guidelines in terms of development and promotion of AI in public or private sector development. What should be the policy initiatives in this regard?

Nepal should set its aim to make it an AI hub in the long run. It has both competitive and comparative advantages. Since Nepali entrepreneurs and professionals are performing fairly well in ICT sector, this can propel the growth of AI if the country comes up with better policies. I am lobbying with the government and ministers, including the former PMs to make Nepal an AI hub. We have multiple IT hubs in India, China and other countries around us but there is no AI hub. Whether you want or not, AI is here and we have to use it. Since Nepal is a small country, AI development is easy and feasible. We should compete in AI sectors such as AI robots, not in IT. However, we have seen policy gap of inefficiency in many sectors.

Nepal is at initial phase in terms of AI development which offers it a luxury to design the project from a scratch and define various dimensions of it including economic, technological, market, education and human resources. Very soon, all sort of technologies including the health care, weather forecast and even ATM machines will be equipped with AI.

 

What should be the requisites of such an ambition?

There should be assurance of quality energy supply and internet service as well as budget and investments in AI development and expansion. Skilled manpower is another basic need but as I said earlier one doesn't need a university degree, trainings will also do. Likewise, the government should facilitate in sending and receiving the payments for the AI professions in and out of the country. Currently, there have been problems even in bringing in the money in foreign currency which has been discouraging the professionals. The government must devise medium-term and long-term policies to make Nepal an AI hub. The country has Digital Nepal Framework 2018 and it can create further steps beginning from the very policy because ICT sector is very dynamic and policies should be revised quite often.

 

Could you suggest any interventions for education institutions offering academic or skill-based programmes on AI or data science?

Youths from the advanced western countries are drawing good salaries from the work they join after a short-term training. So Nepali education institutions including universities need to redesign their courses on IT and ICT so that it can enable their students to have future-oriented skills and help them find better jobs or develop some innovative projects. Students are not finding exclusive courses on Data Sciences or AI in Nepal. This is an opportunity for them which, if untapped, will be wasted very soon. Likewise, machine learning, deep learning, Python, Java and Natural Language Processing should be taught and learnt to compete globally.

Meanwhile, the private sector companies in should collaborate with large international companies, universities and research institutions to take the stock of latest development in the sector. If development and promoted well, AI tourism can be a demand in future.

 

Which areas do you see as the most attractive ones for jobs in data science and AI for Nepali graduates?

I think, there should be investments in AI in agriculture, health, education and finance. Since these sectors have a level of technological development in Nepal and globally, low-cost investment can yield better return. For example, in agriculture, AI can be applied in measuring the quality of soil, making weather forecast, seed analysis and market finding. Likewise, blockchain has made banking more secure.

 

What would you like to suggest Nepali media in terms of investing in new technology and AI?

Media companies in the USA, Europe and elsewhere are equipping their newsroom and transmission technology with AI. There have been huge investments in AI and data-driven journalism as it helps in analysing big data, distinguishing between facts and opinions. It saves time, reduces cost, enhances the quality of product and ensures timely creation of the content. However, there have been concerns about the plagiarism or intellectual theft and job loss of media people but this shouldn't be a big case as it will open avenues for new categories of jobs in AI in media. It helps to create better content, visualization and graphics, voice overs and filters. So, Nepali media should start investing in technology and AI tools and equipment so that they don't lag in terms of global media and communication advancement. 

Published in The Rising Nepal daily on 6 January 2025. 

Hyatt Centric officially debuts in Nepal

Kathmandu, Jan. 5

Hyatt Hotels Corporation and City Hotel Limited in Nepal have announced the transformation of Hyatt Place Kathmandu into Hyatt Centric Soalteemode Kathmandu, marking the debut of the Hyatt Centric brand in Nepal.

In a statement issued from Corporation in Chigago, the facility combines modern amenities with the city’s rich cultural heritage, creating a vibrant hub for travellers seeking exploration and connection.

“We are excited to introduce the Hyatt Centric brand to Nepal, offering a gateway to Kathmandu's cultural and contemporary pulse,” said Akshay Golyan, Executive Director of City Hotel Limited.

The hotel, following extensive renovations, offers guests a refreshed experience that blends style, functionality, and cultural immersion. The lobby of the hotel features eclectic local-inspired elements and staff offering insider tips for exploring the city while its event spaces expand over 8,600 square feet of customisable venues accommodating up to 600 guests for weddings, meetings, and creative gatherings.

The hotel also features an all-day dining restaurant, Sky Pool Bar and Deck that offers panoramic views and a global menu.

With 153 stylishly designed guestrooms, free Wi-Fi, and an emphasis on adventure, Hyatt Centric aims to deliver unforgettable experiences, said Varun Talwar, General Manager.

Published in The Rising Nepal daily on 6 January 2025. 

PM pledges firm support to improve infrastructure in Solu

Kathmandu, Jan. 4

Prime Minister of Nepal KP Sharma Oli has pledged government’s unwavering support for rapid development of Solukhumbu district which has been greatly contributing to Nepal’s tourism sector.

Speaking at the inauguration programme of the Ngim Dorjee Sherpa Tourism Road in Surke, Ward No. 2 in Khumbu Pasang Lhamu Rural Municipality on Saturday, PM Oli said that the government will support in improving development infrastructure in the district.

On the occasion, according to the Prime Minister's Office, he said that the provincial and federal governments have been collaborating in a project to blacktop the road. "Both levels of government will take responsibility for asphalting this road. The government will leave no stone unturned in the development of Solukhumbu," he assured.

Stating that Solukhumbu is a land of adventurers, PM Oli said that the district was the birthplace of national luminaries like Pasang Lhamu Sherpa and Tenzing Norgay Sherpa, whose achievements have received global acclaim. "Further development in Khumbu will significantly boost tourism promotion," he said.

According to PM Oli, Solukhumbu is a district teeming with tourism potential. He reassured locals of the government’s commitment to implementing development programmes aimed at strengthening their economic standing. Referring to the region as the gateway to the world’s highest peak, Everest, he noted that its appeal to adventure tourists would be further enhanced with upgraded roads and expanded infrastructure.

The Ngim Dorjee Sherpa Tourism Road is expected to improve transportation facilities for Khumbu residents while contributing to the district’s overall economic and social development. PM Oli expressed optimism that such initiatives would elevate the region’s tourism industry to new heights.Top of FormBottom of Form

Published in The Rising Nepal daily on 5 January 2025. 

BHR policy stressed to ensure fair business

 Kathmandu, Jan. 3

Stakeholders have said that the Business and Human Rights National Action Plan (BHR-NAP) should be implemented to ensure fair business for all.

Speaking at a workshop organised in Kathmandu on Friday by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and UNDP, they highlighted the issues like quality control mechanisms, human rights practices, and protection of minority groups at the workplace.

"The three aspects of the BHR – Protect, Respect, Remedy – should be adopted by all businesses," they said.

Nepal is implementing its first five-year action plan on BHR starting in 2024 and concluding in 2029.

The BHR policy includes six major sectors of business and human rights - labour, consumer, women and children, migrant workers, environment and indigenous people, and gender equality and non-discrimination. 

The BHRs are based on the UN Guiding Principles on Business and Human Rights (UNGPs) which are the most authoritative and widely adopted set of principles for responsible business, endorsed in 2011.

Hansa Ram Pandey, an expert on BHR, said that the NAP highlights the private sector's commitment to respecting and promoting human rights. This commitment is expected to enhance the presence of Nepali businesses in international markets and make it easier to access benefits from developed economies.

"To ensure the smooth implementation of the National Action Plan, the United Nations office in Nepal is providing support through various means. As part of this effort, it is assisting stakeholders in preparing an informative guidebook on business and human rights for the private sector," he said.

The National Action Plan, developed by the Government of Nepal, encompasses rights related to workers, migrant workers, consumers, environmental protection, indigenous peoples, women, children, non-discrimination, and social inclusion.

Pushpa Pokharel, another expert on BHR, suggested conducting stakeholders' consultation for the BHR due diligence. Such consultations should be conducted with persons or groups who have interests that are or could be impacted by the enterprise’s activities, and it should be meaningful.

"It requires engagement into HRDD processes so that companies can detect potentially negative impacts early and develop collaborative grievance mechanisms to help companies ensure compliance with their HRDD obligations," she said. 

Published in The Rising Nepal daily on 4 January 2025. 

Foreign Minister Dr. Rana pays tribute to Carter

Kathmandu, Jan. 3

Foreign Minister Dr. Arzu Rana Deuba has expressed deep sorrow over the demise of former President of the USA, Jimmy Carter, and offered heartfelt tributes to his memory.

She visited the US Embassy in Kathmandu and signed a condolence book in honour of Carter on Friday, the Ministry of Foreign Affairs informed in a statement while adding that she extended condolences to Carter's family from the Nepali people, the Government of Nepal, and herself.

A Nobel Peace Prize laureate, Carter had founded the Carter Centre.

He passed away at the age of 100 on December 29. In her message in the condolence book, FM Dr. Rana described Carter as a champion of democracy and a true friend of Nepal.

In her tribute, Minister Deuba stated, “President Carter was an exemplary figure in philanthropy, peace, and democracy. As the President of the United States and the founder of the Carter Centre, his contributions to human rights and democratic values have been widely lauded.”

Reflecting on Carter’s visits to Nepal during the Constituent Assembly elections in 2007 and 2013, she acknowledged his steadfast support for peace and democracy in Nepal. She noted that Carter would always be remembered as a genuine friend and well-wisher of the country.

Born on October 1, 1924, Carter served as the 39^th president of the USA from 1977 to 1981 representing the Democratic Party. He graduated from the United States Naval Academy and served as the governor of Georgia from 1971 to 1975.

Published in The Rising Nepal daily on 4 January 2025. 

‘Making doing business environment more conducive a must’

 Kathmandu, Jan. 3

Minister for Industry, Commerce and Supplies, Damodar Bhandari, has pledged the government's commitment to the changes in policies and laws, including the constitution of the country, to make the doing business environment more conducive.

Speaking at the fifth Annual General Assembly of the Confederation of Banks and Financial Institutions in Nepal (CBFIN) in Kathmandu on Friday, Minister Bhandari said that the government was ready to cooperate and collaborate with the financial sector.

According to Minister Bhandari, while banking services have reached all local levels, banks are yet to explore opportunities beyond managing social security allowances and government transactions in these areas. "Operating accounts for government transactions and salaries at the local level is being labelled as financial inclusion, which is not enough," he said while stating that some policies needed to be reformed and replaced with new ones.

He criticised the banks and financial institutions (BFIs) and said that the country has a situation in which farmers do not get a loan from BFIs easily when they need it the most.

He also said that the government is working to make all possible changes and adjustments to facilitate private-sector business and attract domestic and foreign investment. "What did the banks and financial institutions (BFIs) do with the profits they made from high interest rates during yester years? It's not fair that all other businesses are in trouble and BFIs are reaping benefits," he stated.

According to Minister Bhandari, although industrial enterprise and other laws have provisions for concessions to the entrepreneurs, it was being checked by the annual economic acts.

Speaking on the occasion, the Chairman of the high-level Economic Reform Commission, Rameshwore Khanal, said that the Nepali economy has multiple paradoxes. "The banking sector has good regulation but it is struggling with growing non-performing loans. There is enough liquidity in the market but revenue is low. We need to find solutions to such challenges," he said.

Vice Chairman of the National Planning Commission, Prof. Dr. Shiva Raj Adhikari, said that the country was in need of support from the private sector in fulfilling its development aspirations.

Upendra Paudel, Chairman of the CBFIN, said that the banking sector was currently navigating one of the most challenging periods in its history. "While we take pride in improvements in the external economic environment, the internal economy remains fragile," he said while adding, "Widespread pessimism among investors, entrepreneurs, and businesses has hindered investment and credit expansion, even with adequate liquidity available at minimal interest rates. This has slowed economic and banking activities significantly."

According to Paudel, the sector is also grappling with unexpected declines in profitability, prompting banking investors to seek safer alternatives outside the industry. Rising operational costs, shrinking profits, increasing non-performing loans, sluggish sales of non-banking assets, and a growing exodus of skilled professionals have compounded the challenges.

He suggested revamping the capital expenditure system to enhance the efficiency of implementing plans, policies, and programmes and focusing on expanding the tax base rather than increasing tax rates.

Likewise, he also stressed the need for creating policies and an enabling environment to attract foreign investment into banks and financial institutions. According to him, the Banking and Financial Institution Act needs an amendment to make it more conducive to investment and business.

Published in The Rising Nepal daily on 4 January 2025. 

ICP construction in Dodhara Chandani waiting for forest clearance approval

Kathmandu, Jan. 3

The project to construct an Integrated Check Post (ICP) and a Dry Port in Dodhara Chandani Municipality of Kanchanpur District is waiting for approval to clear forest in the project area.

The proposed Rs. 5.76 billion project to be developed in Ward No. 1 of Dodhara Chandani will utilise 42.36 hectares of national forest land in the buffer zone of Shuklaphanta National Park. The plan includes clearing 1,702 trees and poles on the land, as approved by the Cabinet in September 2024.

In line with regulations for infrastructure development in protected areas, replacement land must be provided to the government. Since immediate replacement land is unavailable, the Department of National Parks and Wildlife Conservation (DNPWC) will receive Rs. 148.26 million for land acquisition and forest development. The allocated funds were transferred to the DNPWC on December 24, last year, informed the Nepal Intermodal Transport Development Board (NITDB).

Ashish Gajurel, Executive Director of the NITDB, said that the committee is in regular contact with DNPWC and the Shuklaphanta National Park Office to obtain clearance for tree removal. Once the approval is granted, the tree-clearing process will commence.

The Government of Nepal is constructing the ICP and Dry Port in Dodhara Chandani to facilitate cross-border trade. NITDB is an agency under the Ministry of Industry, Commerce and Supplies.

This project, supported financially and technically by the Government of India, follows a memorandum of understanding (MoU) signed between the two governments on June 1, 2023.

The Environmental Impact Assessment (EIA) report for the project was initially approved on May 1, 2023, and later revised into an Environmental Management Plan (EMP). The updated EMP received approval from the Ministry of Forests and Environment in August 2024.

According to the NITDB, the Indian side has prepared for issuing tender to select a contractor for the construction. The tender process will proceed once the tree-clearing activities are completed, according to information from the Indian Embassy, informed Gajurel.

The project will include facilities such as roads, parking areas, platforms, warehouses, weighbridges, a container yard, passenger terminals, customs offices, banks, quarantine facilities and administrative buildings.

Published in The Rising Nepal daily on 4 January 2025. 

Hospitality businesses rely on cooperatives for loans, only 28% utilise bank credit

Kathmandu, Jan. 2

Less than one-third of all hotels and restaurants in Nepal have obtained loans from banks and financial institutions (BFIs), cooperatives and other individuals.

Of the total 142,223 institutions in the food and accommodation sector including hotels, restaurants, homestays, hostels, and party venues, only 28.4 per cent have utilised the loan facility, according to the National Hotel and Restaurant Survey 2080 conducted by the National Statistics Office (NSO) report which was published on Wednesday.

About 71.6 per cent don't have any outstanding loan facility during the survey period in the last fiscal year.

Loan analysis across the hospitality sector revealed that while most of the star hotels obtained loans, majority of homestays didn't. More than 80 per cent star hotels have obtained loans while the number of resorts using credit facility is 69 per cent.

On the contrary, only 18.2 per cent of the homestays have used the loan facility, followed by restaurant 26.8 per cent, hotels 33.8 per cent and catering and party venues 35.5 per cent.

According to the NSO report, there are 126 star and 11,919 non-star hotels/lodges. Likewise, Nepal has 126 resorts, 1,345 homestays, 1,047 hostels, 126,859 restaurants and 801 catering/party palaces.

Similarly, in terms of percentage, Sudurpaschim Province tops the list in loan utilization by hospitality business with 41.8 per cent obtaining the credit followed by 37.8 per cent in Madhes while in Bagmati only 23.5 such enterprises have availed of the facility.

NSO concluded there are 25,887 food and hospitality enterprises in Koshi, 11,740 in Madhes, 52,123 in Bagmati, 16,976 in Gandaki, 20,158 in Lumbini, 7,110 in Karnali and 8,228 in Sudurpaschim.

 

One-third firms in Koshi use loans from cooperatives

An interesting fact about loan mobilisation in hotel and restaurant sector is that a significant number of enterprises have obtained loan from cooperatives and individuals. Such number is significantly high in Koshi and Lumbini where 33.7 per cent and 31.7 per cent of them got their funds from cooperatives.

Likewise, 36.1 per cent institutions in Madhes have utilised loans from micro-finance companies while such number in Bagmati is just 6.4 per cent. In Bagmati, 17.9 per cent enterprises received loans from individuals followed by 12.7 per cent in Gandaki and 12 per cent in Koshi.

The country average of Nepal showed that 40 per cent of hotels and restaurants obtained loans from banks, 27.3 per cent from cooperatives, 13.5 per cent from micro-finance companies, 11.6 per cent from individuals, 5.7 per cent from finance companies and 1.8 per cent from other sources.

 

Hospitality contributes 1.96% to GDP

The accommodation and food service activities make a 1.96 per cent contribution to the Gross Domestic Product (GDP) of the country. However, a large number of such enterprises are micro-level businesses engaging only one or two individuals. Enterprises that engage more than 10 individuals are 2,568 while 103,401 businesses are run by only one or two individuals. The sector employs about 500,000 people.  

The hotel and restaurant sector survey happened in Nepal after a gap of 20 years. As it covered all types of hospitality and food enterprises across the country and analyses were broken down to the provincial level, the NSO termed it as the 'first integrated study on the hotel and restaurant sector'.

Published in The Rising Nepal daily on 3 January 2025. 

First female ambassador of Nepal passes away

 Kathmandu, Jan. 2

The first female ambassador of Nepal, Binda S. Shah died at the age of 92 at her home in Kalimati, Kathmandu, on Thursday.

Known by the name 'Bindeshwari Shah', she served as the first woman envoy of Nepal to India for about three years from April 1, 1988. Since she was appointed as the ambassador by the King during the Panchayat regime, Prime Minister Girija Prasad Koirala recalled her after the restoration of democracy in 1990.

She was born in 1933 in Kurseong, India.

Minister for Foreign Affairs, Dr. Arzu Rana Deuba, reached the residence of late Shah to pay her a tribute. She expressed her condolences upon the demise of Shah. 

Published in The Rising Nepal daily on 3 January 2025. 

NRNA, British envoy discuss bilateral matters

Kathmandu, Jan.1

Leaders of the Non-Resident Nepali Association (NRNA) recently discussed the bilateral relations between the United Kingdom and Nepal and investment opportunities with the Ambassador of the UK, Rob Fenn.

A delegation led by NRNA President, Dr. Badri KC, met with Fenn and also talked about the role of the Nepali diaspora in job creation, education and skill development, the NRNA informed in a statement on Tuesday.

During the discussion, Dr. KC highlighted the Nepali diaspora's contribution to the Nepali economy and their active involvement in sectors such as investment, education, healthcare, employment and philanthropy. He also noted that the Government of Nepal has introduced provisions for Non-Resident Nepali citizenship with socio-economic and cultural rights to encourage diaspora's engagement in investment.

Woman Vice-President of the NRNA, Rojina Pradhan Rai, talked about the ongoing issues of British Gurkhas, urging high-level attention from both the Nepali and British governments. She also highlighted diaspora-led initiatives concerning women, children and Nepali students in the UK.

Ambassador Fenn emphasised the importance of creating employment opportunities for young people and exploring avenues for collaboration. He reaffirmed the UK's commitment to strengthening Nepal-UK cooperation and highlighted the vital role of the Nepali diaspora in Nepal's development.

Noting the challenges in attracting sufficient investment to Nepal, Fenn stressed the need to address these barriers to bring in more investment. He also expressed optimism about potential collaboration with the diaspora in areas like education, trade, and youth employment. 

Published in The Rising Nepal daily on 2 January 2025. 

NIA to take swift action against insurance companies involved in misconduct

 Lalitpur, Jan. 1

Newly appointed Chairman of the Nepal Insurance Authority (NIA), Madan Dahal, has pledged to take swift action against the companies involved in misconduct.

"After assuming the new responsibility, I have already directed the insurance companies to make a provision to deposit the claim payments into the bank account of the insured person instead of calling them to claim the money," Dahal who is also the Joint Secretary at the Ministry of Finance said at an interaction with Journalists on Wednesday.

Earlier, He has served as a member of the Board of Directors of the NIA for three months. He was assigned the leadership at the insurance sector regulator following the removal of former Chairman Surya Prasad Silwal after the Commission for the Investigation of Abuse of Authority (CIAA) filed a case at the Special Court over the discrepancy in his date of birth.

According to him, delayed justice is justice denied so the NIA is making efforts to ensure prompt claim settlements for policyholders. "If any life insurance company delays claim payments even after receiving the required documents, we will take strict action against them," said Dahal.

Expansion of the insurance base will depend on the efficient payment of insurance amount and facilitation to the insured people in various grievances. "I have received hundreds of complaints for non-payment of insurance money to the insured individual," he told the journalists.

Likewise, the provision to get approval from the NIA for the appointment of the CEO of the insurance companies has also been scrapped. This was just a practice, not a legal binding to the companies.

Dahal also announced that a new Executive Director would be appointed to the Authority during his tenure.

"Process for the appointment of the executive director of the NIA would begin promptly. The absence of the ED has hampered the operations of the Authority," he said.

Similarly, he informed that training for the surveyor and insurance agent will be designed and implemented as per the suggestions of the committee formed for the same task.

Stating that disbursement of the grant money for the agriculture insurance is delayed, he maintained that there were two reasons behind the delay - fake claims in the part of customers and insurers and resource crunch in the part of the government.

Published in The Rising Nepal daily on 2 January 2025. 

Agriculture, tourism up, industry down in Karnali

Kathmandu, Dec. 31

A recent economic analysis of the Nepal Rastra Bank (NRB) has found that the agricultural production in Karnali Province has increased by 6.79 per cent in Fiscal Year 2023/24. Agricultural land is increased by 1.94 per cent in the same year compared to the previous year.

The production of major agricultural crops, paddy and wheat, increased by 12.04 per cent and 0.43 per cent while millet and barley yield went down by 18.87 and 18.98 per cent respectively, concluded the Economic Status Report of Karnali published by the NRB on Teusday.

Likewise, maize and buckwheat production decreased by 7.61 per cent and 8.46 per cent.

The central bank's analysis is based on the field study in Salyan, Kalikot, Dailekh and Surkhet districts and non-field study of Rukum West, Dolpa, Jumla, Mugu, Jajarkot and Jumla districts.

Last year, the area used for the production of vegetables and fruits increased by 36.4 and 5.98 per cent. Banks and Financial Institutions (BFIs) have mobilized 9.12 per cent of their total loan in agriculture in Karnali.

Meanwhile, the industries in the province are running at 48.51 per cent of their capacity with plastic industries running at their fullest and flour mills running at just 15 per cent of their capacity.

In 2023/24, industrial loan increased by 3.33 per cent to reach Rs. 4.11 billion. Loan to electricity, gas and water increased by 29 per cent that year. However, more than half of the loan (Rs. 2.60 billion) is mobilized in Surkhet district alone. The size of industrial loan in Dolpa is just Rs. 16.5 million. The largest size of loan (83.93 per cent) has been mobilised in service sector.

The province has 475 branches of BFIs with 30 branchless banking points.

Similarly, the number of tourists in Karnali Province increased by 23.40 per cent to cross 1 million in 2023/24. It produces just 17.41 MW electricity – a negligible size of the country's installed capacity of 3157 MW.

 

Provincial economic discrepancies

There have been discrepancies in the economic status and indicators of Nepal's seven provinces with Bagmati contributing 36.36 per cent to the country's Gross Domestic Product (GDP) and Karnali adding only 4.28 per cent in the last Fiscal Year 2023/24.

In terms of the producers' price, Bagmati's GDP is Rs. 2074 billion while Karnali has just Rs. 243 billion, according to the reports of the National Statistics Office (NSO).

Likewise, per capita income in Bagmati Province is US$2484 while Karnali has less than half of it – US$ 1036.

Sudurpaschim is the second poorest province in terms of GDP and its contribution to the national economy with 4.04 per cent economic growth in 2023/24 and 7.09 per cent share in the country's economy.

Koshi appears to be the second largest contributor to the national economy. It has Rs. 903 billion GDP and has 15.83 per cent contribution to the national economy.

 

GDP growth rates up

While the Nepal Rastra Bank (NRB) noted in the provincial status report of Karnali published on Tuesday that the economic growth rate of all provinces will go up in comparison to the previous year 2022/23, Gandaki and Lumbini provinces are likely to see the highest growth rates of 4.55 per cent and 4.05 per cent economic growth rate in 2023/24, well above the national average.

Among the provinces Karnali is projected to achieve the lowest GDP growth rate with 3.39 per cent followed by Sudurpaschim at 3.4 per cent, Koshi at 3.52 per cent, Madhes at 3.78 per cent and Bagmati at 3.96 per cent.

By the end of the last fiscal year (mid-July 2024), with 3.54 per cent GDP growth, the size of Nepal's economy is estimated to reach Rs. 5704 billion.

In 2022/23, Nepal witnessed the GDP growth of 1.95 per cent (at the producer's price).

In terms of sectoral contribution, all provinces have strong service sector with its contribution as high as 77.42 per cent in Bagmati. Industry sector is better in Gandaki and Koshi while agriculture contributes the highest in Madhes and Sudurpaschim.

Nepal's national economy is formed with 62.9 per cent contribution from service sector, 24.09 per cent from agriculture and 13 per cent from industry sector. 

Published in The Rising Nepal daily on 1 January 2025. 

Nepal ill-prepared to manage growing volume of e-waste

Kathmandu, Dec. 28

In the Fiscal Year 2022/23, Nepal imported about 5.7 million mobile phones and more than 4 million last year. It also imported telephone devices including those for cellular and wireless networks in a large volume.

According to the statistics of the Department of Customs (DoC), it also imported more than 2.9 million sets of headphones/earphones, 2.3 million sets of smart watches and 4.3 million mobile chargers.

Likewise, television wets, air conditioners, household and commercial refrigerators, washing machines are also being imported to the tune of hundreds of thousands.

Senior Officer of the Trade and Export Promotion Centre (TEPC), Krishna Raj Bajgain, informed that last year, Nepal imported mobile phones worth Rs. 30.18 billion, television sets worth Rs. 2.49 billion, and computers worth Rs. 13.7 billion.

However, if the statistics of 2020/21 and 2021/22 are analysed, import of mobile phones and other electronic devices was even higher as the demands of such equipment went significantly high in the lockdowns during the COVID-19 period. People needed computers and smartphones for virtual meetings, work from home and entertainment.

Mobile phones worth Rs. 41.2 billion, computers and parts thereof worth Rs. 19.7 billion and TV sets worth Rs. 6 billion were imported in 2021/22. As per industry expert, lifespan of LED TV ranges from 5-10 years while mobile sets are generally used for 2.5-3 years.

It means, most of the mobile phones bought during the COVID-19 pandemic era are being replaced with newer devices. While consumer durables like refrigerators, washing machines and air conditioners last for more than a decade, mobile phones, computers and television sets are replaced at faster pace.

 

E-waste generation

As people are replacing their old electronic devices and throwing away the old sets, they are generating a huge amount of e-waste and creating a challenge for the government and waste managers across the world.

While the Government of Nepal doesn't have recent statistics, in 2018, the Kathmandu Valley alone generated more than 18,000 tonnes of e-waste. A Global E-waste Monitor 2020 put the e-waste figure in Nepal at around 28,000 tonnes in 2019.

Any discarded item with a battery or plug is e-waste. It also includes batteries which have toxic and hazardous substances pose risks to environment and human well-being.

A report on 'Inventory Preparation of E-Waste and Its Management in Kathmandu Valley' prepared by Pace Nepal for the Department of Environment in 2017 listed mobile, laptop, CRT desktop, LCD desktop, CRT television, LCD television, refrigerator and washing machines as the major e-waste component.

The same report noted that the estimated collection/generation of e-waste volume by scrap dealers across the valley is a significant considering the status of Nepal as a developing country. Now, every municipality across the country is facing the problem of growing e-waste generation but none of them have policy or strategy for its management.

While scrap dealers are the last component in the e-waste value chain in Nepal, most of the unused and damaged electronic devices are being taken to India for segregation and recycling in absence of such facilities in Nepal. Scrap collectors collect such devices, including hazardous lead-acid and lithium batteries, at dirt cheap price which mostly happens in urban areas.

Mobile Phone Importers Association (MPIA) said that most of the scrap electronic devices are handled and segregated by informal sector businesses. Most of the retailers or distributors don't provide exchange offer or buy-back facility for the used phones or laptops.

Several years ago, the Nepal Telecommunication Authority (NTA) has taken some initiatives in e-waste management policy but the drive has been stalled since. A high official from the telecom sector regulator said that the policy should be created with the adoption of globally accepted principle 'extended producers' responsibility' in terms of e-waste management.

However, the official cited the poor coordination among the concerned agencies like the Ministry of Forest and Environment, Department of Environment, NTA, Department of Customs and local governments behind policy confusion and inertia.

"This is the reason the country doesn't have any statistics, policies and action plan in terms of e-waste generation, management, processing and control," the NTA said.

 

Government should buy latest devices

Meanwhile, the CAN Federation said that the government has also contributed to the growing size of e-waste. President of CAN Federation, Ranjeet Kumar Poddar, said that the computers procured by the government agencies and public schools are of older generations which won't last long and create burden economically and environmentally.

"While there are 14^th generation computers available in the market, public schools are purchasing 7^th generation computers in bulk. As you know, gadgets and IT products need to be of the latest technology to be compatible with the latest software and applications," he said.

Poddar suggested that the government should adopt a policy to bar the entry of older generation devices and machines if it has to control the generation of e-waste and get most of its investment on IT devices.

 

Policy gap in e-waste management

The government has not yet formulated any standards related to e-waste although experts in health, environment and business processing have been warning about its repercussions for the last one and a half decades. However, Dr. Deepak Kharal, Secretary of the Ministry of Forests and Environment (MoFE), said that the ministry is discussing the formulation of a separate standard for it while addressing other pollution control measures.

“It is not necessary to blindly follow the policies and standards set by other countries. We must focus on our own problems and develop standards tailored to our needs. However, we must not delay further; the time is ripe to learn from the good practices of our neighbouring countries,” he stated.

Acknowledging the growing volume of e-waste due to excessive use of electronic items in Nepal, Dr. Prakas Budhathoki, Spokesperson for the Ministry of Health and Population, pointed out that there are no dedicated laws or policies addressing its management. “A standard has been formulated, but there is not a separate one specifically for e-waste,” he said.

But this policy absence has been a trouble for the recyclers who are seeking facilitation and incentives for their business. Utsav Aryal of Doko Recyclers said that national policy is called for to guide the businesses in this sector that has an impressive value chain from scrap collectors to segregators, recyclers, processors and exporters.

Nepal currently has the National Waste Management Policy 2022 and the Solid Waste Management Act 2011. While the National Waste Management Policy 2022 includes provisions for e-waste management, focusing on proper handling and disposal to mitigate environmental and health risks, experts have said that these provisions have yet to be effectively implemented.

Agencies like NTA and private sector associations said that the formulation of a policy is not helpful unless its implementation strategies and procedures are formulated and implemented.

“It has only been a few years since the excessive use of electronic items began, so the major impacts may not be visible yet. However, if we fail to manage e-waste properly now, it will severely harm future generations,” said Budhathoki. He also stressed the need for the government to introduce robust laws and policies to ensure effective e-waste management, safeguarding future generations from hazardous exposure.

Health implications

Dr. Khem Karki, a public health expert, said that electronic items contain many chemicals and release various harmful substances, including polyester and plastic-based compounds, which can adversely affect human health when kept close to people.

He explained that electronic items release numerous synthetic chemicals into the environment, which take a long time to decompose. These substances can impact human health, potentially causing metabolic syndrome, skin diseases, hypertension and even cancer, depending on the level and duration of exposure.

Most of the e-waste consists of metal ions out of which 2.7 per cent are toxic. “The latest research indicates that long-term exposure to electronic casings can lead to infertility by hindering sperm production,” he said.

According to the World Health Organisation (WHO), exposure to e-waste has been linked to severe health issues, including stillbirths, premature births and low birth weight. Lead exposure from e-waste recycling activities is particularly concerning, as it has been associated with reduced neo-natal behavioural neurological assessment scores and an increased risk of attention-deficit/hyperactivity disorder (ADHD).

“E-waste volumes are pouring globally. The Global E-waste Statistics Partnership (GESP) reported a 21 per cent increase in e-waste generation over five years, reaching 53.6 million metric tonnes in 2019. To put this into perspective, the e-waste generated that year weighed as much as 350 cruise ships lined up to stretch 125 kilometres. This growth is expected to continue, driven by the expanding use of computers, mobile phones and other electronic devices, alongside their rapid obsolescence,” WHO said.

 

KMC relies on public

When asked about e-waste management in the Kathmandu Metropolitan City, where most of the electronic waste is collected, Sarita Rai, Chief of the KMC Environment Division, said that no measures have been taken yet for the decomposition and management of e-waste. However, she mentioned that KMC has been planning to begin collecting and managing e-waste soon.

“We are planning to collect e-waste by dividing it into seven clusters across the 32 wards of KMC. We have called the tenders from Material Recovery Facilities (MRFs) to handle e-waste separately from other types of waste. Currently, we are working on strategies for managing the waste and determining where it can be properly disposed and decomposed,” she said.

The KMC currently lacks a clear understanding of how to decompose e-waste and has not conducted a detailed study on the subject. In the initial phase, the KMC plans to collect e-waste from all service providers within the Valley. “We are requesting the service providers to separate e-waste, and the process has already begun,” she said.

However, other local governments have yet to aim their attention to the management of e-waste although most of them collect the scrap tax. 

Published in The Rising Nepal daily on 29 December 2024. Written jointly with Indira Aryal.   

Sangraula elected new NEFFA president

Kathmandu, Dec. 28

Rajendra Sangraula has been elected unopposed as the president of the Nepal Freight Forwarders Association (NEFFA).

The 24^th Annual General Assembly held in Kathmandu on Friday evening unanimously elected the new executive committee for the association’s upcoming term.

Likewise, Naresh Kumar Agrawal is elected as the senior vice president of the NEFFA, Ashok Man Kapali as vice president, Hari Prasad Dhakal as general secretary, Ishwor Bahadur Gurung as treasurer and Sanjiv Aryal as joint treasurer, and Sujan Kumar Neupane as secretary.

Likewise, Sahadev Banjara, Manish Man Shrestha, Ganga Ram Pudasaini, Ganga Bahadur Raya, Sanjiv Shakya, Rajesh Chandra Pradhanang, and Pranusha Karki are elected as the members.

The first meeting of the newly elected executive committee nominated Nirmal Paudel as a member. According to the association’s bylaws, the executive committee comprises 14 members elected through direct voting, with two additional members nominated by the president in consultation with the committee.

Similarly, former president Prakash Singh Karki has been appointed as the coordinator of the Advisory Committee while outgoing president Manoj Adhikari will continue to serve as an ex-officio member of the executive committee.

Published in The Rising Nepal daily on 29 December 2024.