Smooth LDC Transition

 Prime Minister Pushpa Kamal Dahal Prachanda has expressed his commitment to eradicate poverty and reducing inequality to meet the Sustainable Development Goals by 2030. Speaking at the United Nations General Assembly, he said that the government was committed to ensuring a smooth, sustainable, and irreversible graduation from the LDC category. The Prime Minister stressed the scaling up of affordable finance to the LDCs including through the SDG stimulus package, and addressing the debt distress of LDCs by 2025 and providing coordinated and appropriate debt solutions. 

He demanded the developed nations to fulfill their commitments to providing 0.7 per cent of the GNP as the Official Development Assistance to developing countries and 0.15 – 0.20 per cent to the LDCs. In such a scenario, Nepal must work with the private sector and international stakeholders like the UN, bilateral and multilateral development partners to ensure it retains maximum facilities that it has been obtaining now and enable the public and private sector institutions to compete at the global scale after the transition. 

Nepal is heading to take the new development status after 55 years since it was included in the group of the LDCs in 1971. To graduate from the LDC, a country should fulfill the requirements of at least two of the three parameters – Gross National Income (GNI) per capita income (PCI), human assets index (HAI), and economic and environmental vulnerability index (EVI). 

To graduate from the LDC, a nation must have a GNI per capita of at least US$ 1,242 for two consecutive triennial reviews, must show that it has improved its human capital in order to achieve the human assets requirement through education, health and nutrition, and must exhibit that it is able to withstand external economic and natural disasters or sudden shift in the price of goods. Graduating from the LDC is about improving the image of the country through its economic, social and environmental development.

However, upgrading to a developing country means losing various economic benefits it has been getting for being an LDC, duty-free and quota-free access to the markets in the developed countries like the USA, Australia, and the European Union, and concessional loans and grants for development work. The private sector is apprehensive of 'losing the markets' in developed countries while a section development experts and economists, including policymakers, are worried about the potential loss of the developmental support from the international development partners.  

For a country like Nepal, which is unable to finance its development projects with its own income, and is in need of spending more than US$ 17 billion in a year on an average to meet the Sustainable Development Goals (SDGs) or to be a middle income country by 2030, losing the options for concessional financing option could be challenging. 

According to the Ministry of Finance, Ministry of Foreign Affairs and Ministry of Industry, Commerce and Supplies and National Planning Commission, efforts have been put to make the transition smooth to save the private sector and the national economy from any anticipated or unanticipated shocks. The government has been in communication with the European Union and other developed nations to continue the facilities such as zero customs duty and general system of preference being offered to Nepali products in their countries. 

Meanwhile, there has been a significant progress in negotiating the GSP Plus facility with the European Union. GSP Plus is special incentive arrangement for sustainable development and good governance that supports vulnerable developing countries. Such countries can benefit from complete duty suspensions for products across approximately 66 per cent of all the U tariff lines, including sensitive products. 

Published in The Rising Nepal on 20 September 2023. 

Business forum held to promote Indonesian investment in Nepal

Kathmandu, Oct. 5

The Embassy of Indonesia for Bangladesh and Nepal, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Honorary Consulate of Indonesia in Kathmandu jointly organised a 'Business Forum' in the Capital on Thursday to promote bilateral investment, trade and tourism.

Speaking at the programme, Ambassador of Indonesia to Bangladesh and Nepal, Heru H. Subolo, stressed on the need for increased business and people-to-people exchanges between the two countries.

According to him, there are many bilateral business potentials between Indonesia and Nepal and governments and business communities should put their efforts to tap those potentials.

President of the FNCCI, Chandra Prasad Dhakal who is also the Honorary Consul of Indonesia in Nepal, stressed on the promotion of tourism and trade between the two countries. He also urged the investors of Indonesia to come to Nepal and invest in the areas of comparative advantage.

Dhakal said that direct flight from Jakarta to Kathmandu could be instrumental in enhancing trade and tourism as well as people-to-people relations between the two friendly nations.

He also sought the support of the Indonesian government in prioritizing Nepali goods in the Indonesian market, a move aimed at boosting trade relations between the two nations.

Vice-President of the FNCCI, Hemraj Dhakal, stressed on collaborations between the businesses of two countries in the areas including tourism and electric vehicle trade and manufacturing.

The business forum is held every year to establish good relations between Indonesia and Nepal. Indonesia, with its 270 million population, is the largest economy in the Southeast Asian region and known as the newly industrialized country.

A member of the G20, it is the world's 16^th largest economy, 7^th largest in terms of the Gross Domestic Product (GDP) of US$ 1.3 trillion on the basis of purchasing power.

However, trade between Nepal and Indonesia is small with just US$ 20.6 million.

"Indonesia hopes that Nepal can utilise the prospective Indonesian market," Ambassador Subolo said. Nepali major exports to Indonesia are carpets, tea and jute products while Nepal imports palm oil, mineral fuels, wood and paper from Indonesia.

Speaking on the occasion, Ambassador Subolo informed about the Trade Expo Indonesia has slated for 18-22 October this year which is being organised in Tangerang City, near Jakarta.

The expo focuses on Business-to-Business trade while also promoting tourism and investment exhibitions for Indonesian export-oriented products and services, said Subolo. 

Published in The Rising Nepal on 6 October 2023. 

Nabil, BEEN sign MOU for energy efficient housing

Kathmandu, Oct. 5

Nabil Bank has signed a Memorandum of Understanding (MoU) with Building Energy Efficiency in Nepal (BEEN-Project) funded by the European Union (EU) to collaborate for the promotion of energy efficient and sustainable housing in Nepal.

With this agreement, both Nabil Bank and BEEN Project agree to work in promotion of sustainable and climate-responsive building design in Nepal.

Gyanendra Prasad Dhungana, Chief Executive Officer of the Bank, and Daniel Neyer, Project Leader, BEEN –Project, signed the agreement on Thursday.  According to the bank, the partnership will specifically roll out activities on developing innovative financing package, build technical capacities to assess financial package and facilitate linkages to access preferential financial schemes for the promotion of sustainable and energy efficient buildings.

Speaking on the MoU signing programme, Upendra Prasad Poudyal, Chairman of Nabil Bank, said that the bank has always been sensitive towards climate change and contributing to reduce global warming. Stating that banking sector plays a vital role in reducing climate emergencies, Poudyal said, “Building energy efficient and sustainable building not only benefits environment but also has positive impact on our community and economic cycle.”

He further informed that huge investment is required to achieve net zero emission by 2045.

With the common goal to promote and raise awareness about sustainable housing, Nabil Bank has introduced ‘Sustainable Housing Loan’ where BEEN is providing the technical assistance to define the parameters and also support in providing training and promotion and awareness of sustainable housing.

Dhungana said that the bank is promoting sustainability in many ways by supporting electric vehicle financing and sustainable housing loans products along with other sustainable practices in daily operations

Likewise, Neyer said, “With this partnership, BEEN- Project will specifically roll out activities on developing innovative financing package, build technical capacities to assess financial package and facilitate linkages to access preferential financial schemes for the promotion of sustainable and energy efficient buildings.”

The BEEN Project is funded by the EU under its SWITCH-Asia Programme to promote low carbon resource efficient and circular economy through EU Green Deal and Global Gateway. 

Published in The Rising Nepal on 6 October 2023. 

Govt committed to timely completion of MCC projects: PM Prachanda

Kathmandu, Oct. 4

Prime Minister Pushpa Kamal Dahal Prachanda has assured that the government is committed to timely implementation of transmission line and road upgrading projects funded by the Millennium Challenge Account (MCA) Nepal, with grant support from the United States' Millennium Challenge Corporation (MCC).

He said this during a celebration held in the capital to mark the launch of the MCC Nepal Compact. Prachanda emphasised that the MCA Project signifies the continuation of a strong partnership between Nepal and the USA.

The CEO of MCC, Alice P. Albright, joined Prime Minister Prachanda at the event, which was hosted by MCA-Nepal. The MCC Nepal Compact is a joint endeavour funded by both the Government of Nepal and MCC.

Prachanda acknowledged the United States as one of the first development partners to support Nepal's socio-economic and political development. He emphasised that the timely implementation of the MCA project will instill confidence in development partners and encourage investment in the hydropower sector while facilitating energy trade.

The Prime Minister highlighted the government's priorities, which include modernising agriculture, infrastructure development, tourism, and human resource creation. He urged investors to consider these sectors and sought support from development partners in these areas.

The five-year programme, launched on August 30^th, was initiated with an Entry into Force (EIF) letter exchange between Finance Minister Dr. Prakash Sharan Mahat and MCC Vice President for Compact Operations, Cameron Alford. The EIF represents a crucial milestone in MCC compacts, indicating that all necessary conditions and preparations are in place for successful completion of compact projects within a five-year timeframe.

Prime Minister Prachanda noted that MCC-funded projects open new opportunities for economic cooperation between Nepal and the USA. He expressed hopes for enhanced trade connectivity throughout Asia and emphasised the significant contribution of the compact's projects to Nepal's economic development and poverty reduction. He extended his gratitude to the US Government for their ongoing cooperation and assistance.

 

 

Finance Minister Dr. Mahat expressed confidence that the MCC Nepal Compact's projects would support Nepal's growth and benefit its citizens through improved roads and reliable sypply of electricity. He also confirmed the government's plan to allocate US$ 197 million to the project and pledged full support for its successful implementation.

Regarding recent high-bidding activity for MCA projects, Dr. Mahat considered it a temporary hurdle and expressed confidence in its resolution. He further affirmed the government's commitment to ensuring no time or cost overruns in the project.

MCC's CEO Albright expressed readiness to partner with the Government of Nepal, acknowledging the ambitious goals set for the programme. She highlighted the importance of addressing inevitable challenges together to deliver a successful programme.

The US Ambassador to Nepal, Dean R. Thompson, underlined the significance of the MCC-Nepal Compact in supporting economic growth for the Nepali people and strengthening the enduring friendship between Nepal and the United States.

Khadga Bahadur Bisht, Executive Director of MCA Nepal, shared that the road maintenance design is in its final stage. He emphasized collaboration with stakeholders like the Nepal Electricity Authority, Department of Roads, and Roads Board for effective project implementation.

During her three-day visit, CEO Albright engaged with key government officials and stakeholders involved in the Compact's implementation. She participated in a tree-planting ceremony to emphasize MCC's commitment to environment protection and climate preservation. Albright also observed ongoing work with the Department of Roads to train engineers in using climate-smart, sustainable technology for creating a safer transportation network that is easier to maintain and better for the environment.

The Government of Nepal and MCC signed the MCC Nepal Compact on September 14, 2017, incorporating two projects: the Electricity Transmission Project and the Road Maintenance Project, aimed at providing more reliable electricity and cost-effective transportation in Nepal.

Published in The Rising Nepal on 5 October 2023. 

Ultima introduces two smart watch brands

Kathmandu, Oct. 4

Ultima Lifestyle has introduces two cutting-edge smart watches: the Ultima Watch Circle and the Ultima Watch Magic Pro which the company has labeled as the most affordable, feature-packed smartwatch.

The Ultima Watch Circle is available at a special launch price of Rs. 3,999 against the maximum retail price (MRP) Rs. 5,999 for a limited time and units. It features a stunning 1.43" high resolution TRU Amoled Display that ensures crisp visuals.

"With an impressive 800 nit brightness, you'll have clear readability even in bright sunlight on its full-screen touch display. This watch empowers you to track your fitness journey comprehensively, recording steps, distance, and calories," the company said in a statement.

The device also has advanced health monitoring features, bluetooth calling, waterproof certification, 250mAh battery. The battery can be charged in an hour time.

Likewise, the Ultima Watch Magic Pro is available at a special launch price of Rs. 2,999 against the MRP of 4,999 for a limited time and units. Featuring a large 1.96" UltraVU Smooth HD Display with a remarkable 320 x 386 Pixel Resolution and 500 Nits Brightness, users can experience crystal-clear visuals on its full-screen touch display, said the company.

"This watch goes beyond communication, doubling as your health companion, recording steps, distance, and calories, and offering smart notifications. With a 1-year brand warranty and an IP68 waterproof rating, this watch is not just stylish but also durable and ready for your active lifestyle. Elevate your tech game with this exceptional timepiece," read the statement.

Published in The Rising Nepal on 5 October 2023. 

Hotels should be priority industry, say businessmen

Kathmandu, Oct. 2: 

The Tourism and Air Transport Committee under the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has demanded that the hotel business be given the same services and facilities as the 'national priority industry'.

The delegation of the FNCCI that included its Vice-president Hemraj Dhakal and Chairman of the committee Desh Bandhu Basnet (Ajit) called on Minister for Industry, Commerce and Supplies Ramesh Rijal and demanded the service facilities to the hotel business like the 'priority industry'.

According to the Industries Enterprises Act-2020, adventurous tourism with infrastructures, rural tourism; ecological tourism, golf course, polo, pony trekking, trekking tourism, rafting, assembly, conference tourism, sports tourism, religious tourism, cultural tourism, fun park construction and operation and wildlife reserve which are related to tourism are categorised as the priority industry but hotel and hospitality sector is not included in the definition.

"In addition to providing employment opportunities to millions by investing large capital in the hotel sector, the businesses have also contributed to the gross domestic product (GDP) of the country by earning a large amount of foreign currency," Basnet said as he handed over a memorandum to Minister Rijal. 

Therefore, classifying this sector as a national priority industry is our earnest and urgent demand, he said. 

The committee claimed that the hotel sector should be given such facilities as per the manufacturing industry according to its contribution to the economy and destination development as well as the production of tourist goods and services. The facilities to the national priority industry include special discounts on tax and import duties and concessions on utility bills like electricity and water. 

The committee has also put forward a demand that the current Foreign Investment and Technology Transfer Act, 2019 should be amended to allow foreign investment in the hotel business. 

"Currently, according to the provisions of the law, it is difficult to operate an international hotel and resort in the country with the provision that the royalty fee is not more than 5 per cent of the total sales," the memorandum submitted by the committee to the minister states. Because of this, foreign investment cannot be brought into this sector, Basnet said and demanded that the provision in the law should be removed immediately to bring in more foreign brands and investment in the hotel business.

VP Dhakal said that it is necessary to attract more investment in the hotel and hospitality sector from foreign investors, non-resident Nepalis and multi-national companies. 

Industry Minister Rijal said that the demands of the private sector would be addressed. He directed the secretary of the ministry and other concerned agencies to resolve the problems at the earliest, the committee informed in a statement. 

Published in The Rising Nepal daily on 2 October 2023. 

China visit successful to enhance bilateral relations

 PM Prachanda returns home

Kathmandu, Sept. 30

Prime Minister Pushpa Kamal Dahal Prachanda said that his visit to China was an opportunity to hold intensive bilateral discussions on enhancing mutual relations by making optimum use of the existing opportunities and possibilities in both countries.

“In addition to a clear exchange of views on strengthening the multifaceted relations between the two countries, there was an open discussion about China's support and cooperation in Nepal's development efforts,” PM Prachanda said upon his arrival at the Tribhuvan International Airport in Kathmandu after concluding his 15-day entourage to the United Nations’ 78^th General Assembly held in New York of the United States of America and the official visit of China.

He had left the country for New York on September 16 and returned home on Saturday, September 30.

From New York, he reached Hangzhou in China on September 23 to participate in the opening ceremony of the 19^th Asian Games. Before the opening ceremony, a delegation-level discussion was held between PM Prachanda and Chinese President Xi Jinping.

They deliberated on strengthening the people-to-people relations between Nepal and China. “There was a positive discussion about direct flights from China at Pokhara International Airport and encouraging cooperation between the aviation bodies of the two countries,” PM Prachanda said to the journalists.

The talks were also focused on Nepal's upgradation from the list of least developed countries to a developing country by 2026, the unique success achieved by China in the field of poverty alleviation and economic prosperity, and increasing trade, investment, international transport network and economic-social partnership with China in order to support Nepal in its graduation as well as development process. “President Xi has assured China’s full support in this drive,” said Prachanda.

PM Prachanda’s visit happened at the invitation of his Chinese counterpart Li Qiang and it is the first high-level visit from Nepal after President Xi’s visit to Nepal in 2019.

PM Prachanda expressed his belief that his visit has played an important role in strengthening the atmosphere of mutual trust between Nepal and China and strengthening the overall aspect of the historical relationship between the two countries in the context of the lack of high-level visits for a long time due to the COVID-19 epidemic.

There were positive discussions on strengthening the people-to-people relations between Nepal and China, conducting direct flights from China to Pokhara International Airport and encouraging cooperation between the aviation bodies of the two countries, he informed.

Likewise, on September 24, PM Prachanda addressed Nepal-China Business Forum jointly organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), China Council for the Promotion of International Trade (CCPIT) with the support from the Embassy of Nepal in Beijing. Informing the Chinese investors  about the investment areas having comparative and competitive advantage, he urged them to come to Nepal to make investment.

During the bilateral talk with Chinese PM Li on September 25, issues like the construction of transmission lines by China in difficult villages in the northern border region of Nepal, installation of solar systems in places where electricity cannot be reached from the central power transmission system in the areas on the border of Nepal and China, road construction and road upgrading in various places, and expansion of cooperation in the health and agriculture sectors were talked upon.

We also discussed about infrastructure development such as re-operation of traditional border crossings disrupted after the advent of COVID-19, construction of infrastructure on the border crossing towards Nepal, construction of state-of-the-art laboratories, said PM Prachanda.

Similarly, the two prime ministers also talked about cooperation in the field of science and technology, expansion of bilateral trade, and extension of air services from Chinese cities at Pokhara International Airport.

According to the needs of Nepal, the Chinese side is going to start the fourth phase of the Araniko Highway Upgrading Project.

Similarly, the Chinese side is ready for the repair of the Syaphrubesi-Rasuwagadhi road and both sides have agreed to proceed with the feasibility study of the Hilsa-Simkot road. They have agreed to speed up the feasibility study of the Tokha-Chhahare tunnel route, and implementation of the second phase of the Kathmandu Ring Road project. Likewise, they agreed to organise the eighth meeting of the working group for Nepal-China Railway Cooperation at the earliest.

According to PM Prachanda, the Chinese government has already given official information regarding the resumption of international trade channels between Nepal and China in addition to the traditional channels.

Similarly, along with the opening of the Korala border crossing of Mustang, Kimathanka and Olangchungola border points will also be put into operation soon. It has also been discussed that the Chinese side will provide support for the construction of infrastructure at the Korala border pass of Mustang.

Discussions have been held on the implementation of the concept of Trans-Himalayan Multidimensional Connectivity Network by connecting Tibet and Nepal by railways, roads, air services, power transmission lines, and information routes. I have also requested to resume air service from Lhasa to Kathmandu, said the prime minister.

While in China, PM Prachanda met Zhao Leji, Chairman of the National People's Congress of China, and visited Chongqing Academy of Agricultural Science to see a sample of China's agricultural revolution.

On September 27, he reached Lhasa of Tibet where he had a conversation with Wang Junzheng, the party secretary of the Tibet Autonomous Region of the Chinese Communist Party. According to him, Nepal can learn a lot and benefit from the rapid economic development that Tibet has been doing for some time now.

Likewise, at the UNGA in New York, PM Prachanda delivered a speech on behalf of Nepal in the General Debate of the high-level session of the assembly.

“I mainly presented the peace process of Nepal and the international community's support to bring it to a concrete conclusion, climate change and its effects on underdeveloped countries including Nepal and its solutions, the problems of the Himalayan nations, the problems of the underdeveloped nations in achieving the goals of sustainable development, and the resources to solve those problems,” he said.

He has drawn the serious attention of the world community for the arrangement.

PM Prachanda also addressed the Summit on Sustainable Development held on September 18 as the President of the Least Developed Countries Group where he emphasised the problems faced by the LDCs including Nepal in achieving the goals of sustainable development and the need to implement the Doha Action Plan and provide resources and technical assistance from development partners to solve them.

Addressing the Climate Ambition Summit held on September 20 as the chairman of the group of the LDCs, he drew serious attention to the effects of climate change on the LDCs and urged the international community to fulfil the commitments it made regarding climate finance including Green Climate Fund, Loss and Damage Fund, Adaptation Fund. “And I have requested to provide easy financial access to countries like Nepal, which are affected by climate change,” he said.

Likewise, addressing the High-Level Dialogue on Financing for Development, he stressed the need to fulfil the commitment of development aid made by the international community to make the unbalanced and unequal development seen in the global economic system fair, equal and balanced, and to comprehensively reform and transform the international financing mechanisms and structures.

Meanwhile, Embassy of Nepal in Beijing said in a statement that Nepali Ambassador to China, Bishnu Pukar Shrestha, embassy officials, officials of the Consulate General in Chengdu and senior officials of the government of Sichuan Province of China were present at the airport in Chengdu to see off the Nepali delegation. 

Published in The Rising Nepal daily on 1 October 2023.