Chinese language training starts

 Kathmandu, Jun. 6

Chinese language training for Nepal’s tourism professionals and entrepreneurs began on Friday.

Speaking at the inauguration of the training programme, Minister for Culture, Tourism and Civil Aviation, Badri Prasad Pandey expressed confidence that the training would contribute significantly to the promotion of Nepal’s tourism.

“Knowledge of the Chinese language will serve as a bridge between Nepal and China, and I believe it will help promote tourism," he said.

He highlighted that linguistic knowledge is akin to adding value.

According to him, the more languages one learns, the more one enhances their competence. Being proficient in a language plays a vital role in facilitating interpersonal communication and building closeness with others.

Minister Pandey also noted that language carries the essence of civilisation, history, and philosophy. Referring to Chinese language interpreters as skilled human resources, he stated, “Those trained in the Chinese language can work as cultural ambassadors. It not only supports tourism development but also creates opportunities for self-employment.”

Minister Pandey also urged the Chinese attendees to explore Nepal’s natural beauty. “Since China has also declared a Nepal Tourism Year, I urge our Chinese friends to visit and experience Nepal’s nature. One can never get enough of Nepal,” he said.

Noting the visible decline in snow on Nepal’s mountains due to climate change, Minister Pandey also informed that efforts are underway for mitigation and adaptation to climate change.

The training is jointly organised by the Nepal Tourism Board and the Chinese Embassy in Nepal.

Speaking on the occasion, Chinese Ambassador to Nepal, Chen Song, said that the seventh batch of language training was organised to mark the 75^th anniversary of diplomatic relations between Nepal and China.

“This is the third time I’ve attended the inauguration of a language training programme since arriving in Nepal. As Chinese tourists visiting Nepal expect communication in their own language, this training will help enhance the quality of Nepal’s tourism,” he said.

Ambassador Song also said that Chinese tourists coming to Nepal are not only interested in shopping or visiting destinations but also wish to experience local culture and communicate in their own language. Knowledge of the Chinese language will help convey Nepal’s history to these tourists and contribute to the long-term excellence of service quality.

He further stated that learning Chinese is a golden opportunity to benefit from the world’s largest tourism market.

Likewise, Acting CEO of the Nepal Tourism Board, Hikmat Singh Ayer, said that the Chinese language training is a significant initiative.

To date, 240 individuals have been trained through six previous batches of the Chinese language training programme in Nepal. Following an agreement reached during Prime Minister KP Sharma Oli’s visit to China to strengthen Nepal-China relations, the training has been conducted in Nepal since 2016.

Published in The Rising Nepal daily on 5 June 2025. 

ADB recommends to develop Sudurpaschim's tourism

Kathmandu, Jun. 4

The Asian Development Bank (ADB) on Wednesday presented recommendations for developing Sudurpashchim into a sustainable and inclusive tourism destination.  

The recommendations were part of the Sudurpashchim Integrated Economic and Tourism Development Study, which was presented at the Tourism Symposium and Pre-Investment and Development Summit, the ADB informed in a statement.

The Summit was held in Dhangadhi and brought together ambassadors, heads of development agencies, federal and provincial government representatives, and private sector leaders to explore investment opportunities in Nepal’s far-western region.  

The Study by ADB was conducted at the request of the Ministry of Culture, Tourism, and Civil Aviation and builds on the 2022 Provincial Tourism Master Plan.

“The province’s natural beauty and cultural heritage are exceptional, yet its tourism potential remains largely untapped,” said ADB Country Director for Nepal Arnaud Cauchois.

According to him, the ADB study shows that targeted investments in connectivity, destination hubs, and workforce capacity can transform Sudurpashchim into a thriving tourism economy.

The key findings of the study emphasised the need for enhanced infrastructure to improve accessibility and promote visitor dispersion, the development of integrated tourism circuits and eco-friendly destination hubs, and cross-sectoral support to strengthen governance, build a skilled tourism workforce, and attract private investment.  

Cauchois reaffirmed ADB’s commitment to continue supporting Nepal’s development. He noted that the event provided a valuable platform to align development strategies, foster public-private partnerships, and promote regional and international collaboration.

 

The event was also attended by Minister of Foreign Affairs Dr. Arzu Rana Deuba, Minister of Forests and Environment Ain Bahadur Shahi Thakuri, Minister of Industry, Commerce and Supplies Damodar Bhandari and Chief Minister of Sudurpashchim Province Kamal Bahadur Shah. 

Published in The Rising Nepal daily on 5 June 2025. 

Construction of Dodhara Chandani ICP to begin soon

Kathmandu, Jun. 4

The removal of trees and poles at the construction site of the Dodhara Chandani Integrated Check Post (ICP) and Dry Port is in its final stage and construction is expected to begin soon, Nepal Intermodal Transport Development Board (NITDB) said.

This national priority project is located in Dodhara Chandani Municipality-1 in Kanchanpur district, within the buffer zone of Shukla Phanta National Park.

The government issued an approval to utilise 42.36 hectares of national forest land and remove trees and poles on October 19, 2024.

A bilateral agreement between the Department of National Parks and Wildlife Conservation and the NITDB was subsequently signed on January 8 this year. Permission to fell 1,593 trees within the 42.36 hectares of national forest land for the ICP construction was obtained from the National Park Office on February 6.

According to the NITDB, 940 of the 1,593 trees have been felled, with the remaining work expected to be completed within next 15 days.

The project, with an estimated total cost of approximately Rs. 3.80 billion, is being constructed with financial and technical assistance of India. A Memorandum of Understanding (MOU) between the two governments was signed in June 2023.

"The Indian side has selected a construction company, and a contract is expected to be signed soon," read a statement by the Board. The project had been stalled for 15 years.

According to Ashish Gajurel, Executive Director of the NITDB, with the completion of the tender process and the tree management work within the next fifteen days, construction is expected to commence within one to two months.

The dry port will feature modern trade infrastructure, including roads, parking areas, platforms, warehouses, weighbridges, container yards, passenger terminals, customs, banks, and animal and bird food laboratories (quarantine).

Its completion and operation are expected to facilitate trade and be a milestone in the development of the Sudurpaschim Province and adjoining areas in the western-most part of the country. 

Published in The Rising Nepal daily on 5 June 2025. 

FEEN urges government to focus on export promotion

Kathmandu, Jun 4

The Federation of Export Entrepreneurs Nepal (FEEN) has urged the government to focus on increasing exports, building national capital, creating employment, and substituting imports.

A delegation led by the newly elected President of FEEN, Govinda Prasad Ghimire, presented a seven-point memorandum, containing recommendations to the government, to Prime Minister KP Sharma Oli on Wednesday at the Prime Minister’s residence in Baluwatar.

It urged the implementation of strategies prioritising economic growth and the export sector in the budget for the upcoming fiscal year 2025/26. It also drew attention to issues that had previously been overlooked, particularly at a time when the economy is in decline.

Ghimire emphasised the need to expedite the construction of the International Exhibition Centre to attract foreign buyers to Nepal.

Similarly, to boost investment and tourism, FEEN has proposed declaring the period from 2026 to 2030 as 'Export Years' and called for enhanced cooperation between the government and the private sector.

In response, Prime Minister Oli assured that the government gives high priority to economic growth, employment generation, and increased tourism.

He expressed commitment to addressing the genuine suggestions of export entrepreneurs and called for joint efforts to explore feasible and practical alternatives, even though it may not be possible to provide extensive incentives to exporters under the current circumstances.

Published in The Rising Nepal daily on 5 June 2025. 

Pandit appointed NRB Spokesperson

Kathmandu, Jun 4

Nepal Rastra Bank (NRB) has appointed Kiran Pandit as its new spokesperson.

The Executive Director of the central bank assumed his duties as the spokesperson from Wednesday, June 4.

Pandit joined the NRB in 2005. "He brings extensive experience from various departments within the bank, including the Bank Supervision Department, the Department of Regulation of Banks and Financial Institutions, and the Financial Inclusion and Customer Protection Division," the NRB said in a statement.

Currently, he is serving in the Payment Systems Department. 

Published in The Rising Nepal daily on 5 June 2025. 

NTB, UNDP launch 'Nepal Travel Specialist' course

Kathmandu, Jun. 4

The Nepal Tourism Board (NTB), in collaboration with the United Nations Development Programme (UNDP) Nepal, has launched the 'Nepal Travel Specialist – Basic Level' online course.

"This digital initiative aims to enhance the knowledge and service quality of tourism professionals across Nepal's tourism value chain," the NTB said in a statement on Wednesday.

The course, developed under the Sustainable Tourism Project (STP), a joint NTB-UNDP initiative, is hosted on NTB's e-learning platform. It comprises 10 units covering topics such as Nepal's geography, culture, and biodiversity, major tourism products (trekking, adventure, heritage, wellness), sustainable tourism principles, responsible travel practices, climate resilience, customer service skills, and visitor engagement strategies.

The programme is tailored for tour operators, guides, travel agents, and tourism students, serving as foundational training for those aspiring to become certified Nepal Travel Specialists.

According to the NTB, this course provides consistent, accurate, and accessible information about Nepal's tourism offerings. The initiative aims to equip international travel professionals with the knowledge and skills needed to promote Nepal effectively in global markets and offers a learning platform for individuals interested in Nepal's culture, nature, and travel opportunities.

"By fostering a skilled and informed workforce, the course supports the sustainable growth of tourism," read the statement.

CEO of the NTB, Deepak Raj Joshi, said that the course is a cornerstone of their digital capacity-building efforts and that through collaboration with UNDP.

"We are strengthening the foundations for a more sustainable, inclusive, and professional tourism industry," he said.

Likewise, Kyoko Yokosuka, UNDP Nepal Resident Representative, said that the course represents a joint commitment to enhancing livelihoods through tourism and that such digital learning tools allow equitable access to skills and knowledge, especially for youth and professionals in rural areas.

Key features of the course include self-paced online modules for flexible learning, interactive multimedia content (videos, quizzes, visual guides), and a Certificate of Completion to enhance professional credibility.

Access to the course is free via the NTB e-learning platform.

The NTB also said that this course development aligns with the Government of Nepal's goal to welcome 3.5 million tourists annually by 2032, as part of its Tourism Decade strategy.

"By investing in human capital and e-learning platforms, NTB and UNDP aim to ensure Nepal's tourism industry remains competitive, sustainable, and resilient in a global marketplace," read the statement.

The Sustainable Tourism Project (2025-2028), jointly launched by NTB and UNDP, aims to create 2,500 jobs and enhance tourism skills for 5,000 people, particularly women and marginalised groups. Through infrastructure upgrades, digital innovation, and local capacity building in priority destinations, the project supports Nepal's Tourism Decade goal. 

Published in The Rising Nepal daily on 5 June 2025. 

NCC urges awareness before putting MRP and labelling rules into effect

Kathmandu, Jun. 4

The Nepal Chamber of Commerce has drawn government’s attention to the issues arising in the implementation of MRP (Maximum Retail Price) and product labelling.

A delegation from the business body, led by its Vice-President Deepak Shrestha, submitted a recommendation to the Minister for Industry, Commerce, and Supplies, Damodar Bhandari, on Wednesday, suggesting that MRP and labelling requirements be enforced only after raising awareness among both consumers and retailers.

“It is a constitutional right of consumers to access quality goods and services. To ensure consumers are not deprived of this right, awareness and publicity efforts related to the market and products must be advanced," the NCC said in a statement.

However, without moving these efforts forward, the recent actions taken by the Department of Commerce, Supplies, and Consumer Protection (DoCSCP) have adversely affected legitimate industrialists and traders who comply with state laws, rules, and regulations, read the statement.

The DoCSCP, in accordance with Section 6 of the Consumer Protection Act, 2075, has issued a notice requiring all domestic and imported products to carry labels indicating the MRP. However, according to the NCC, the current market monitoring and unnecessary punitive actions taken by the Department are damaging the already fragile industrial environment.

Although there had been an agreement to resolve disputes regarding MRP and labelling through mutual dialogue after conducting awareness campaigns among consumers and traders, the NCC noted that the DoCSCP has instead continued to intimidate entrepreneurs unnecessarily, in violation of that understanding.

The Chamber has urged an end to the intimidation and penalisation of entrepreneurs without due cause. Meanwhile, it also made clear that the NCC will not support any trader or business engaged in illegal or unauthorised activities.

Published in The Rising Nepal daily on 5 June 2025. 

Transport strike, a blow to tourism sector, entrepreneurs worry

Kathmandu, Jun. 3

The strikes of the public transport operators in the name of 'rescuing public transport' from the 'ride-hailing' business following Gandaki government's introduction of ride-hailing regulation on May 15 and Bagmati's intention to promulgate similar policy has severely impacted the public movement across the country.

It greatly frustrated the tourists – both domestic and foreign – who had been to various destinations in Nepal.

The Nepal Association of Tour and Travel Agents (NATTA) said that the situation has had an adverse impact on the tourism sector of Nepal.

"Such incidents not only cause inconvenience to the foreign tourists travelling in Nepal but also domestic tourists, forcing them to postpone or cancel their tours. This could lead to a serious long-term decline in the international tourist influx into Nepal," NATTA said in a statement.

It expressed serious concerns to the obstructions to public transport seen in Pokhara, the tourism capital of Nepal, and other key tourist destinations.

Likewise, Suman Ghimire, Past President of Regional Hotel Association Chitwan, said that both the tourists and hospitality businesses were impacted by the transportation strikes.

"Some tourists cancelled their trip to Sauraha and other destinations due to the ongoing strike of transport businesses. Hotels that don't have green-plate (tourist carrying) vehicles had to suffer additional problems," he said.

According to the hotel entrepreneurs of Kathmandu, if the protests sustained, international tourists would cancel their visits to Nepal.

Nepal Business Summit, organised by Nepal Chamber of Commerce with other institutions, scheduled to be inaugurated by Prime Minister KP Sharma Oli in Kathmandu on Monday was postponed due to the strikes.

President of Hotel Association of Nepal (HAN) Binayak Shah said that the tourists travelling without having prior reservations were greatly affected as there would be no one to take them to the hotels and other destinations.

There are more than 8,000 tourist vehicles including buses, micro-buses, vans, jeeps and cars.

But only 250 buses offer passenger services to the regular routes while other run on reserve and provide point to point service.

Since such buses don't run regularly on destinations other than Pokhara and Chitwan, tourists in those locations experienced greater hassles, said Krishna Acharya, President of Tourist Bus Association of Nepal.

According to him, more than 100 buses were in operation along the Pokhara and Chiwan routes from Kathmandu. Initially, they had to face problem in Damauli of Tanahun but the police helped to run the buses safely.

"We have never ceased our service even during the emergency period. So, the government should provide security to us proactively," he said.

Acharya and all tourism entrepreneurs are worried that while the tourism activities have just reached to the situation of pre-COVID scenario, the strikes and disturbances would send negative messages to the prospective tourists.

 

Talks remain inconclusive

What is more worrisome is the protests and strikes are announced for an indefinite period against the decision to legalise the ride-sharing businesses by the provincial government.

The talks between the struggling entrepreneurs and government on Tuesday concluded inconclusive. It means the struggle would continue on Wednesday as well.

Chairman of the struggle committee Bijaya Bahadur Swar issued a statement on Tuesday that the protests will persist until a resolution is reached.

Stating that there have been no formal discussion between the struggling transport businesspeople and the government, he announced that the protest programmes would continue until their demands are met.

"We urge all transport operators, self-employed individuals, and transport workers to continue these protests peacefully and in an organised manner," read the statement by the struggle committee.

Gandaki provincial government said that the steps to leagalise the ride-hailing businesses have been taken to ensure safety and security in the business and bring it in the tax-net. Additionally, the Supreme Court had already issued directives to the governments at the federal and provincial level to regulate these businesses with proper policy guidelines.

However, the public transport service operators have cited the federal Motor Vehicle and Transport Management Act to make a point that it's illegal to use private vehicles to run on rental service or carry passengers.

 

Free shuttle service for tourists

Meanwhile, Nepal Tourism Board has launched a free shuttle bus service jointly with the NATTA for the convenience of tourists.

It is offering a complimentary transport for tourists arriving at the Tribhuvan International Airport, from the airport's arrival area to major hotels in Kathmandu.

The NTB also said that such convenient, organised, and tourist-friendly services will continue to be expanded in the coming days.

The Nepal Police is also operating free bus service for the tourists and passengers.

General Secretary of NATTA, Yubika Bhandari, urged in the statement that in such an uncomfortable situation with transport obstructions, the Nepal government, the Ministry of Tourism, the Ministry of Home Affairs, the local administration, and local bodies are urged to find immediate solutions.

NATTA urged the stakeholders to adopt a long-term strategic approach to operate the transport sector smoothly and safely.

Published in The Rising Nepal daily on 4 June 2025. 

Ncell launches contest for digital content creators

Kathmandu, Jun 3

Ncell has launched the 'League of Creators', a dynamic nationwide initiative aimed at discovering and empowering Nepal’s next generation of digital content creators.

The company has initiated it in collaboration with Uptrendly.

The winners will gain national recognition, and compete for exclusive rewards, including a one-year brand deal with Ncell worth Rs. 1 million, Ncell informed in a statement.

Selected participants will receive personal content creation training from some of Nepal’s most prominent creators: Sanjog Koirala, Pratima Adhikari, Foodie Nepal, Parakram Rana, and Ekata Tandukar, who will serve as mentors throughout the competition.

Through this initiative, the company aims to empower the next generation of Nepali digital content creators by providing them with a platform to learn, grow, and inspire change through impactful content.

Registrations for the League of Creators began on May 30 and it will remain open till June 10. The competition is open to all Nepali content creators aged 16 and above, regardless of prior experience. Participants are invited to submit a 30–90-second vertical video exploring personal or emotional interpretations of connectivity.

The top 50 creators will be selected by the mentors for exclusive training. These creators will be grouped into five mentor-led teams and undergo workshops at Ncell ICON, participating in challenge rounds based on creative briefs and evaluated by an expert jury.

Industry leaders from Ncell and the U.S. Embassy will guide participating creators and judge their entries. Entry is free, and participants must be based in Nepal during the campaign. 

Published in The Rising Nepal daily on 4 June 2025. 

Budget grounded in reality: DPM Paudel

Kathmandu, Jun 2

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that the budget for the upcoming fiscal year 2025/26 is grounded in reality rather than driven by populism. Speaking at a discussion programme organised by the Economic Media Society Nepal (EMSON), Minister Paudel emphasised that he opted for discipline and pragmatism over political popularity in shaping the national budget.

“There is a general perception that a finance minister from the CPN (UML) would bring a populist budget. But I consciously tried to steer away from that mindset,” said Paudel while adding, “Rather than asking what would make me popular, I asked what would make the budget more disciplined, what would widen revenue sources, and how we could better manage our spending.”

Paudel stressed that while he respected all views shared on the budget, his main goal was to ensure the allocation remained within the bounds of resource availability. “The volume of mandatory obligations has increased, and we have attempted to manage that along with prioritising development expenditure,” he added.

FM Paudel claimed the budget was designed to uplift private sector confidence and expand investment avenues. “This budget will help revitalise the economy, boost productivity, and create jobs,” he asserted, noting that the implementation of the budget was now his primary responsibility.

According to him, he has emphasised on the execution of the budget.

Speaking on the occasion, former Finance Minister Dr. Prakash Sharan Mahat expressed cautious optimism.

He welcomed the trimming of over 4,500 projects as a positive step toward better implementation. He criticised the political trend of including unnecessary projects for short-term popularity.

“The real issue is populism. Popular decisions now may become unpopular in the future. The focus should be on fewer, implementable projects based on resource availability,” he said.

He also called for reforms in capital expenditure and suggested granting tax holidays in sectors like information technology.

Highlighting the under-utilised land in hilly regions, he proposed its use for commercial farming with subsidies tied to actual production. Dr. Mahat praised elements of the budget aimed at attracting private investment and urged Nepal Rastra Bank to align its monetary policy with the budget's objectives.

Likewise, former Finance Minister, Janardan Sharma, strongly criticised the budget, calling it 'neither realistic nor grounded in Nepal’s economic needs'.

He pointed out that despite claims of boosting employment and production, the budget lacks concrete measures for reviving sick industries. Citing a massive Rs 4 trillion loss in the hydropower sector, he criticised the silence of major private institutions.

Sharma described the budget as drifting towards neoliberalism and distorted capitalism, and it has deviated from Nepal’s constitutionally mandated goals of social justice. He also raised serious doubts about revenue targets, including Rs. 332 billion in foreign aid and Rs. 362 billion in domestic loans, questioning their feasibility.

“The system punishes those who work and rewards those who don’t,” he lamented.

Sharma criticised delays in implementation due to policy and structural hurdles. He also warned that without clear revenue sources, the budget would remain unimplemented and pose economic risks.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, said the budget for the next year incorporates many of the private sector's recommendations. He maintained that the budget positions the private sector as a key driver of economic growth and has energised the business community.

He emphasised that the private sector’s demands have always been focused on national economic reform, not merely self-interest.

While welcoming the inclusion of export provisions for Nepal’s mineral resources, the issue which is long advocated by the private sector, he stressed the importance of proper implementation.

Dhakal also highlighted that facilitation of the Special Economic Zones (SEZs) lease costs and infrastructure for international convention centres were positive steps.

However, he expressed concern over provisions like the PPA (Power Purchase Agreement) and 'Take and Pay' model in the hydropower sector, which could discourage foreign investment and complicate financing.

He praised foreign currency policy changes for border hotels as a boost for tourism. Nonetheless, he concluded that effective implementation and good governance are critical if the budget's 6 per cent growth target is to be achieved. 

Published in The Rising Nepal daily on 3 June 2025. 

Gold dealers upset about taxes on jewellery

Kathmandu, Jun 1

Three major business federations representing Nepal’s gold, silver, gems, and handicraft sectors have jointly urged the government to immediately revoke the newly imposed taxes on jewellery.

Issuing a joint statement on Sunday, they said that the new measures would severely harm the industry, fuel illegal trade, and threaten thousands of livelihoods.

The Federation of Nepal Gold and Silver Dealers Association (Fenegosida), the Federation of Nepal Gold, Silver, Gems and Jewellery Associations (FNGSGJA), and the Federation of Handicraft Associations of Nepal (FHAN) expressed mixed reactions to the government’s recent budget announcement for Fiscal Year 2025/26.

President of Fenegosida Diyesh Ratna Shakya, of FNGSGJA Kisan Sunar and of FHAN Rabindra Shakya have signed the statement.

The federations welcomed the government’s provision allowing Nepali migrant workers to bring a fixed quantity of gold ornaments as personal belongings, and its commitment to facilitate bonded warehouse services and ensure gold and silver availability on partial advance payment for export-oriented industries.

But they raised strong objections to the new tax structure.

The budget has introduced a 2 per cent luxury tax on all jewellery, regardless of value, and a 13 per cent Value Added Tax (VAT) on ornaments embedded with diamonds and precious stones. Previously, the luxury tax applied only to jewellery worth over Rs. 1 million.

The federations warned that the tax hike would increase prices by up to 13 per cent, making Nepali jewellery significantly more expensive than in neighbouring countries and encouraging smuggling and illegal trade.

They also raised concerns about the disruption of resale guarantees, a key business model in the sector, while noting that the already sluggish jewellery market, hit by rising gold prices, would face further decline.

Through the statement, they urged the government to revoke the new taxes, introduce supportive laws and policies, conduct an impact assessment before implementing tax reforms, ensure international-standard hallmarking, resolve gold supply issues for small industries, and eliminate the 2.5 per cent TDS on exports.

Meanwhile, Nepal Foreign Trade Association (NFTA) welcomed the newly announced budget and said it is positive and collaborative towards the private sector.

It appreciated the provisions including plans to study the long-debated multiple VAT rates and to make customs valuation more realistic. “We believe replacing the reference pricing system with an automated valuation based on international price databases will enhance trade facilitation,” read a statement issued by the NFTA on Sunday.

The budget has also addressed major demands, such as eliminating advance income tax on food, grains, fruits, and animal products at customs points, and removing the requirement of a bank guarantee to obtain an EXIM code.

Additionally, the removal of the minimum tax for non-taxable transactions, support for overseas investments by Nepali entrepreneurs, reduction in SEZ land lease rates, and tax relief on IT service exports are seen as significant boosts to business confidence.

However, the Association criticised the steep hike in alcohol import duties, warning it may fuel smuggling across open borders.

Published in The Rising Nepal daily on 2 June 2025.

FM Rana returns from Hong Kong

Kathmandu, Jun 1

Minister for Foreign Affairs Dr. Arzu Rana Deuba returned home on Saturday night after participating in the signing ceremony of the Convention on the Establishment of the International Organisation for Mediation, held on May 30 in Hong Kong. The ceremony was organised by the Government of China.

Nepal participated in the signing ceremony of the convention as an observer.

FM Dr. Rana had departed for Hong Kong last Wednesday to attend the event at the invitation of Chinese Foreign Minister Wang Yi.

Thirty countries signed the convention, while representatives from over 50 countries and more than 20 international organisations attended the ceremony, the Ministry of Foreign Affairs (MoFA) informed.

"The objective of the newly established organisation is to mediate disputes between countries, between a country and a company or citizen of another country, and among private enterprises of different nations," read a statement from MoFA.

On the sidelines of the event, FM Dr. Rana also held a bilateral meeting with Chinese Foreign Minister Wang Yi.

She said that the discussions during the meeting covered expanding economic, technical, and commercial ties between the two countries, as well as the timely completion of projects currently under construction in Nepal with Chinese assistance.

“This year marks the 70^th anniversary of the establishment of diplomatic relations between Nepal and China. It was also discussed that the occasion will be commemorated through special events and by continuing the exchange of high-level visits between the two nations,” FM Dr. Rana said.

She invited FM Wang to visit Nepal during the 70^th anniversary celebrations and the latter responded to it positively.

The Nepali delegation led by FM Dr. Rana included Bhrigu Dhungana, Head of the Northeast Asia Division at the MoFA, Dr. Bindeshwar Prasad Lekhak, Nepal’s Consul General in Hong Kong, and other representatives from the MoFA and the Consulate General in Hong Kong.

Published in The Rising Nepal daily on 2 June 2025.

‘Realistic’ budget demands ‘earnest’ execution

Kathmandu, May 31

Prime Minister and Chairman of CPN (UML) KP Sharma Oli is a leader who propagates 'ambitious planning' and 'sets up high targets' in development outline, including in the annual budgets of the government.

However, his staunch supporter Deputy Prime Minister and Finance Minister and Vice-Chair of CPN (UML), Bishnu Prasad Paudel, announced 'less ambitious' – in his words, a 'realistic' budget for the next Fiscal Year 2025/26.

Given the significant financial constraints, this moderation was anticipated as the Finance Ministry had made its intentions clear during the budget formulation. 

DPM Paudel appeared to be contended while facing a large group of journalists a day after he presented the budget of Rs. 1,964.11 billion for the upcoming fiscal year. Although the media briefing on Friday was a ritual, it is the time when the Finance Minister is grilled by journalists as the latter dig the motive behind the allocations to certain sectors or no allocation to others.

Amidst the growing development aspirations and financing needs for three-tier federal government structure, the Finance Minister has been facing a challenge to maintain a balance between the sources of income and expenditures. Expanding social security expenditure is another issue of worry.

Ministry of Physical Infrastructure and Transport (MoPIT), Ministry of Urban Development (MoUD), Ministry of Energy, Water Resources and Irrigation (MoEWRI) and Ministry of Water Supply (MoWS) are the major development ministries while Ministry of Education, Ministry of Health, Ministry of Tourism and Ministry of Industry also mobilise significant portions of development budget.

National Development Research Institute, in its analysis of budgets of FY 2011/12 to 2023/24, has concluded that a significant portion of the budget is allocated to public services.

According to it, a substantial 36 per cent of the budget of fiscal year 2023/24 has been designated solely for general administration expenses, whereas less than half, a mere 17 per cent, has been allocated for development and construction expenses.

The same report observed that there was inefficient utilisation of the allocated 17 per cent. The country has long been facing the challenges of meagre resource allocation to development and its poor utilisation (see table). Budget performance of the MoPIT that mobilises the largest share of the capital allocation hovered at around 71 per cent for the last decade.

Budget size and capital allocation from FY 2016/17 to FY 2025/26 (Rs. in billion)

Fiscal Year	Budget Size	Capital Allocation	MoPIT's Share	PoPIT's performance
2016/17	1,048	208	88	65
2017/18	1,278	278	113	87
2018/19	1,315	313	124	92
2019/20	1,532	408	161	115
2020/21	1,474	352	138	98
2021/22	1,647	378	136	94
2022/23	1,793	380	143	101
2023/24	1,751	302	135	89
2024/25	1,860	352	144	98 (est.)
2025/26	1,964	407	152	-

Source: Budget Speeches, MoF & MoPIT

In the last 10 years since the new constitution came into force, more than 80 per cent of the budget has been spent only in three years. In the last 13 years, an average of 84.76 per cent has been spent under recurrent headings, an average of 67.80 per cent under capital headings, and an average of 81.52 per cent under financial management.

 It emerges that only 80.58 per cent has been spent on average.

Defence, peace and security, and entertainment, culture, and religion have seen more spending as per the allocation, but less than 80 per cent has been spent in the capital construction sector.

There are problems in formulation, lack of efficiency in allocation, excessive demand compared to resources, and a tendency to demand budget for projects that have not met the prerequisites for implementation and have not been studied, a former high official of the Finance Ministry said.

 

Trend to set high targets and adjust in mid-year  

According to economists and development experts, what is more worrisome for the economy is the tendency to announce a large budget by including populist programmes and bring down the annual estimates during the mid-term review in February every year. It has become a common characteristic of the fiscal policy for the past several years.

For example, the government adjusted the budget of this FY 2024/25 to Rs. 1,692 billion from Rs. 1,860 billion – 90.99 per cent of the total estimates – on the pretext of poor capital expenditure, inadequate revenue collection and realisation of foreign loans and grants.

The budget was slashed by 12.62 per cent last year 2023/24 as well to bring the budget size to Rs. 1,530 billion from Rs. 1,751 billion. The meagre capital budget of just Rs. 352.35 billion was reduced to Rs. 299.50 billion. In the first six months, the government had spent only 16 per cent of the total development budget. While only one-and-a-half months remain of this fiscal, the utilisation of development budget has reached only 37 per cent.

Since the budget of this fiscal year was designed and announced by Barsha Man Pun, Finance Minister of the coalition government led by CPN (Maoist Centre), DPM Paudel could term it 'overly ambitious' and 'problematic' for implementation. But he will be in no luxury to downsize the budget of the next year during mid-term review.

DPM Paudel said that the budget of the next year addresses various development holdups such as scattering the funds. He cut the budget of the 4,654 projects in order to secure funds for more important projects.

The government has put forward various policy reforms with the aim of promoting economic growth by balancing public expenditure and development activities for the upcoming fiscal year, according to him.  

 

Reforms in project management

Through the budget, the government has made an attempt to diversify resource mobilisation by adopting a policy of utilising alternative development finance. It is believed that this will help in financial access for long-term infrastructure development.

Project management and procurement processes are being improved in line with the goal of increasing capital expenditure.

In particular, arrangements have been made to start the procurement process after May 30 (a day after announcement of the budget), and monitoring of projects larger than Rs. 250 million through a national dashboard is expected to improve transparency and performance.

A threshold of Rs. 30 million has been implemented for federal projects strictly in the budget, and limiting grants to a maximum of 50 per cent of the cost will contribute to cost control and planning effectiveness, he said.

Likewise, the projects that have completed preparatory steps such as land acquisition and forest clearance will be moved to the procurement phase. To accelerate project execution, contract agreements will include provisions for three-shift work arrangements.

DPM Paudel also announced that the Public Procurement Act will be amended and electronic procurement system will be implemented to ensure timely, cost-effective and quality completion of infrastructure projects. Development assistance would be mobilised to large infrastructure projects like Dudhkoshi and Upper Arun through co-cofinancing from multiple donor agencies.

Other development management provisions include holding the responsible official accountable if project costs increased or abnormal liabilities are created due to delayed and flawed decisions and specification.

In addition, efforts have been made to balance current expenditure through a policy of controlling contingency and consultant costs and adopting frugality.

Making balanced budgets mandatory at the provincial and local levels and simplifying land use in forest areas will contribute to inclusive development.

Similarly, the proposal for policy reforms to promote foreign investment will create an environment for injecting foreign capital into the economy. All these initiatives are aimed at ensuring good governance, transparency, and sustainable development overall, said DPM Paudel.

The Finance Ministry is also set to ensure a match between the project bank and the Line Ministry Budget Information System (LMBIS). All mismatch would be removed before taking any project into implementation, Shree Krishna Nepal, Chief of Budget Division at the MoF, said the other day.

With these development policy reforms and extended list of private sector facilitation – including concessional loan, reduction in customs duty and charges for space at the Special Economic Zones – DPM Paudel said he is in a position to assure the country that the budget of the next fiscal would make impacts on the economy.

 

Challenge to mobilise capital budget

Prof Dr. Ram Prasad Ganwaly, Head of the Central Department of Economics, Tribhuvan University, said the budget for the upcoming fiscal year sticks to fiscal discipline.

He termed the policy to increase the age limit for receiving senior citizen allowance to 70 years a 'bold move' which will positively contribute to the economy.

The government has included many suggestions provided by the High-Level Economic Sector Reform Advisory Commission in the budget, said Ganwaly who was also a member of the Commission.     

Through the budget, the government has tried to reduce the rerecurrent expenditure and increase the capital expenditure which is essential for higher growth.

Of the total allocation of Rs. 1964.11 billion, Rs. 1,180.98 billion (60.1 per cent) is allocated for recurrent expenditure, Rs. 407.89 billion (20.8 per cent) for capital expenditure, and Rs. 375.24 billion (19.1 per cent) for financing arrangements.

Of the total budget of Rs. 1860.40 billion of the current fiscal year, around 61.31 per cent has been allocated for recurrent expenditure, 18.94 per cent for capital expenditure and 19.74 per cent for financing.

 

In terms of revenue collection, the projection of Rs. 1,315 billion for the upcoming fiscal year is also practical based on the estimation of the current fiscal year, said Ganwaly.

 Former Finance Minister Janardan Sharma, while agreeing with DPM Paudel termed the budget 'realistic' but questioned the bases that would boost expenditure next year. Speaking at the post-budget discussion programme organised by the Nepal Association of Financial Journalists (NAFIJ) in Kathmandu on Saturday, he said, "The government should be serious about achieving the targets set by the budget. It also has a challenge to change the situation of 10 times higher imports than exports."

 

Pro-private sector budget

Through the budget, the government has addressed almost all the demands raised by the private sector.

The budget has proposed various discounts and concessions for industries ranging from export-oriented industries to information technology-based industries, hotels and resorts.

The government has announced to give tariff exemptions to information technology-based industries, hotels and resorts.

Similarly, an arrangement for a 75 per cent tax exemption on income derived from the export of information technology services. A provision has been made to exempt income taxes for startup businesses with an annual turnover of up to Rs. 100 million for five years.

The government has abolished other taxes and duties by imposing only 1 per cent customs duty on the import of mill machinery required for wood seasoning industry, removed customs duties and abolished other taxes and duties on the import of equipment required for the production of organic and natural fertilisers.

A 1 per cent customs duty has been imposed on the import of equipment, tools and sports materials required for the construction of infrastructure for football, cricket and multi-purpose stadiums, abolishing all other taxes.

The government has made arrangements to exempt all types of taxes and duties on machinery and equipment imported for green hydrogen production industry for five years.

Provision of only 1 per cent customs duty has been introduced on the import of batteries and other equipment required to store electricity from solar and wind energy.

DPM Paudel also said that the budget has been introduced with the aim of encouraging the private sector to invest.

"In addition, such things have been introduced in the budget for the upcoming fiscal year with the aim of motivating the private sector to invest and facilitating investment in projects."

In the meantime, the private sector leaders appreciated the budget citing that it would encourage private sector investment.

"If private sector investment cannot increase even after providing so many tax exemptions for industries and businesses, how can the government expect the private sector to accelerate the country's economy further?" economist Dr. Ganwaly said.

He expressed hope that private sector investment would increase and help achieve the targeted economic growth of around 6 per cent in the coming fiscal year.

Published in The Rising Nepal daily on 1 June 2025 (prepared jointly with Laxman Kafle). 

Budget is framed for growth: DPM Paudel

Kathmandu, May 31

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has announced that Nepal’s upcoming fiscal year budget has been designed to achieve an economic growth rate of 6 per cdnt. Speaking at a post-budget discussion organised by the Nepal Association of Financial Journalists (NAFIJ) on Saturday in Kathmandu, he expressed confidence that the budget, built on sound principles and fiscal discipline, could be effectively implemented.

Highlighting the realism of the 6 per cent growth target, DPM Paudel said that the country had previously achieved 7.5 per cent growth, so this year's target is achievable with coordinated effort. “The budget follows fiscal principles and adheres to financial limits. It has been framed with proper resource mobilisation in mind,” he said.

However, he acknowledged that while the revenue targets are ambitious, they are achievable with diligence. “We must work to meet the targets. Without effort, nothing is possible,” he said.

DPM Paudel also claimed that borrowing to meet the budget deficit had been planned responsibly to cover principal and interest payments without overstretching the economy. He urged stakeholders not to worry excessively about resource mobilisation, stating that the budget has avoided the pitfalls of overly fragmented micro-project allocations, instead focuses on effective programme delivery to make tangible results.

Speaking at the same event, Vice-Chairman of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari, said that this year’s budget-making process was more structured, with reforms including the exclusion of projects costing less than Rs. 30 million from the federal budget.

“Previously, budget allocations were scattered across too many small projects. This time, we have taken corrective measures,” he said, adding that better coordination among the Ministry of Finance, NPC, and relevant stakeholders has led to a more targeted and youth-friendly budget that would promote entrepreneurship and startups.

Former Finance Minister Janardan Sharma welcomed the emphasis on private sector involvement but stressed the need for critical assessment of policies and allocations adopted by the budget.

“While some policies are commendable, we must be realistic. The economic structure still requires substantial reforms, especially in agriculture, trade balance, and industrial output,” he said.

Sharma also noted the importance of addressing declining development expenditure, which currently stands at a modest Rs. 91 billion. “Without qualitative capital spending, desired outcomes are unlikely,” he said.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, appreciated the government’s decision to allow foreign investment by Nepalis.

However, he stressed the importance of execution over mere announcement stating that the private sector was ready to support the government in implementing the budget.

President of the Nepal Chamber of Commerce (NCC), Kamlesh Kumar Agrawal, described budget of the upcoming year as development-oriented and somewhat ambitious despite the current challenging circumstances.

According to him, there is a need for reforms in exports to India, and monetary policy support to address economic contraction.

Likewise, Immediate Past President of the Confederation of Nepalese Industries (CNI), Vishnu Agrawal, also supported the budget, calling it positive and investor-friendly.

But he said that industrial growth should be supported with policy implementation since revenue goals could only be met through increased production and investment. According to him, energy policy and customs reforms are important to spur industrial growth.

President of the Federation of Contractors’ Association of Nepal, Ravi Singh, described the budget as promising but emphasised that 90 per cent capital expenditure execution must be targeted in the upcoming year.

"Although the provision for completing flagship projects within two years is a welcome step but sick projects still lack adequate attention in the budget document," he said.

However, President of the Independent Power Producers Association, Ganesh Karki, expressed concern over financing limitations due to IPO restrictions and purchase obligations for produced electricity.

“There is uncertainty in the energy sector because of delayed project executions and ambiguous electricity procurement policies,” he said.

President of the NADA Automobiles Association, Karan Chaudhary, appreciated the budget for giving recognition to the automobile sector, and said that it would help dispel misconceptions about the industry’s contributions to the national economy.

Similarly, Executive Director of the Nepal Rastra Bank, Guru Prasad Paudel, said that the removal of digital transaction taxes would support the growth of the digital economy and that foundational work for digital banking was underway.

Economist and former NPC member Dr. Ramesh Paudel said that the budget was private sector-friendly but fell short on deep structural reforms. “The informal economy still dominates, and unless brought into the formal fold, tax and capital spending reforms will remain inadequate,” he said.

He also noted that only 5 per cent of GDP is currently being spent on capital expenditure and called for more efficient public spending and domestic resource mobilisation.

Published in The Rising Nepal daily on 1 June 2025. 

Technology, research key to become self-reliant in potato

Kathmandu, May 31

Stakeholders have pointed at the need to expand research, technology transfer and farming know-how and create sustainable value chain to make the country self-sufficient in potato production.

Speaking at the Second Potato Summit 2025 organised in Kathmandu on Friday, they stated that Nepal should reap benefits from the research for the varieties with high productivity potential and disease as well as climate change resistance is going on across the globe.

Varieties that can cope with the climate change scenario, survive in waterlogged situation and poor water availability are also being developed in India and China.

Potato is one of the primary agricultural and food commodities in Nepal and elsewhere with high demand for domestic as well as industrial uses. With the growing demand for chips, fries and many other varieties of industrial productions, demand for potatoes has also increased.   

The Summit, jointly organised by the Nepal India Chamber of Commerce and Industry (NICCI), the Ministry of Agriculture and Livestock Development (MoALD) and Food and Agricultural Organisation (FAO), aimed at enhancing seed value chain efficiency, optimising potato value chain, promoting potato processing and value addition and facilitating private sector engagement. 

Yubaraj Bhusal, Senior Potato Scientist, said that Nepal should focus on the research of variety of potatoes while informing that the NARC has developed 15 varieties, of which five have been registered. "Those new varieties of potatoes are drought- and disease-tolerant and have high production potential," he said.

Likewise, Santosh Dahal of Ficus Biotech suggested the policymakers and stakeholders to start planning or developing policies and new technologies such as aeroponics and hydroponics. "We need research facilitation, policy support and technology transfer to develop this sector," he recommended.

Ken Shimizu, FAO country representative for Nepal and Bhutan, stressed on better seed management system and coping with the climate change impacts.

He also suggested economic zoning and modeling, contract farming, cold storage facility and encouragement to farmers from the government for better production of potato.

Nepal has taken potato seriously from the perspectives of food security and nutrition. Its production is prioritised by the Prime Minister Agriculture Modernisation Project (PMAMP) while research and infrastructure has also been promoted, said Agriculture Secretary Govinda Prasad Sharma.   

Minister for Agriculture and Livestock Development Ramnath Adhikari said that productivity of potato should be increased with the application of modern seeds, technology and farming style.

We have preserved some local varieties of potatoes. "Two super zones and 17 zones are being promoted for potato production under the PMAMP. Indigenous potato farming and production is promoted in eastern hill districts," said Minister Adhikari.

He pointed to the need for quality cold storage facilities to support farmers as well as the industries to preserve the produce throughout the year and maintain steady supply in the market. However, the government could not clear the dues generated by the subsidy programmes to the cold storages.

Potato is a crop of family's self-reliance on food and about 90 per cent of the demand in Nepal is met by domestic production.

Published in The Rising Nepal daily on 1 June 2025.