Nepal can produce 100,000 litres bio-ethanol a day

Bio-ethanol production gains momentum after 2-decade hiatus

 

Kathmandu, Oct. 26

Production of bio-ethanol in Nepal has been a story of an unsuccessful project as talks prevailed for more than two decades while mechanisms to fix the price and sign the purchase agreement couldn't transpire.

Approximately, 21 years ago in November 2003, the Ministry of Industry, Commerce and Supplies (MoICS) decided for the mandatory mixing of bio-ethanol in petrol used as vehicle fuel from January 15 that year as an initiative for the application of environment-friendly fuel. The Nepal Oil Corporation (NOC) had installed a machine for mixing ethanol in petrol at its depot in Amlekhgunj which never come in use.

On December 15, 2003, the Government of Nepal (GoN) published the notice in the Gazette to implement the decision but even after 21 years, the government is yet to set the price to purchase it from the producers.

Meanwhile, the discussion of producing bio-ethanol centred mostly around the sugar mills while proposals to extract it from jatropha couldn't take off. The budget of Fiscal Year 2009/10 had announced to promote jatropha farming to produce bio-diesel as an alternative to imported petroleum fuel.

Likewise, the Rural Energy Policy 2006 included a provision to identify the potential locations to produce bio-fuel and develop them. The thirteenth plan of the country (2013/14-2015/16) also pledged to formulate necessary policy to produce bio-fuel in Nepal while the Policy and Programmes of the GoN for FY 2014/15 announced to launch a fresh initiative to find a way to mixing bio-ethanol in petroleum products. The policy of the following year mentioned to promote private sector companies for the same.

While there were initiatives from various institutions ranging from Nepal Academy of Science and Technology (NAST) to private companies in the past two decades to produce bio-fuel and bio-ethanol, sugar mills had repeatedly urged the government to facilitate them in producing bio-ethanol from molasses – a byproduct of the sugar mills.  

The country also formulated a Bio-Mass Energy Strategy 2017 that again announced to partially substitute diesel and petrol import with the use of bio-diesel and bio-ethanol, identify land to cultivate fuel crop and provide it to the entrepreneurs, and promote the production of bio-ethanol from molasses.

 

Procedures to mixing bio-ethanol soon

The GoN had announced, a decade ago, to buy bio-diesel and bio-ethanol produced in Nepal even if it's up to 10 per cent more expensive than the imported diesel and petrol and make necessary provisions for the same, provide financial concession, subsidy and concessional loans to the producers and refineries and conduct research and development work for the production, processing, quality control, and market promotion and expansion.

After several years of these milestones, Minister for Industry, Commerce and Supply, Damodar Bhandari, had announced on September 9 this year to set the price of bio-ethanol within a month.

According to the NOC, which has the responsibility to prepare the further strategy for the production and promotion of bio-ethanol and set the purchasing price of the product, the entire process is stuck at determining the price at which the NOC will buy it from the producers.

Nepal Sugar Mills Association (NSMA) has said that the mills are okay with the NOC's petrol purchasing price which is around Rs. 90 per litre. Minister Bhandari is also concerned about whether the price could be set in a way that would benefit all stakeholders – producers, NOC and consumers.

The issue was in oblivion for several years and was resurfaced after a committee to suggest the mixing of ethanol in petroleum products led by Dinanath Mishra, Director General of the Nepal Bureau of Standards and Metrology, and included officials from MoICS, Nepal Academy of Science and Technology, NOC, Alternative Energy Promotion Centre, and Kiaan Chemicals Industries (KCI) Pvt. Ltd., submitted its report to the government in April 2024.

Later on August 25 this year, Industry, Commerce, Labour and Consumer Welfare Committee of the Federal Parliament directed the government to advance the bio-ethanol production process, set the standards of the product, and sign purchase agreement from the producers in order to guarantee the market for them.

The House Panel also directed the GoN and MoICS to implement the suggestions offered by various committes formed in the past and facilitate the domestic producers in producing bio-ethanol.

 

Stakeholders are positive

After a week of the House Panel's decision, the MoICS had expressed its commitment to formulate a procedure for mixing ethanol in petrol and implement it within the next three months. According to Dr. Chandika Prasad Bhatta, Managing Director of the NOC, the draft of the bylaws for Mixing Ethanol in Petrol is at the final stage.

The NOC is currently moving ahead with the plan to mix up to 10 per cent ethanol in petroleum products which is possible, according to Pratibha Maharjan, Chief of Central Laboratory of the NOC.

India and China have enacted policies to mixing 15-30 per cent ethanol in petroleum products while United States of America has a policy to mix 10 per cent, Brazil 27 per cent, India 15 per cent and China 10 per cent. Maharjan said that India has subsidized the production and transportation of bio-ethanol so Nepal should also adopt special polity to promote the production of this environment-friendly fuel.

The NOC said the bio-ethanol that would be used in petroleum products should be of high quality – E-99 standards. Ethanol can also be produced from napier grass, corn husk, rice straw, corn, wheat chaff and bamboo.

The sugar mills said that they currently have the capacity to produce at least 50,000 litres of bio-ethanol from the molasses and the Kiaan Chemicals Industry is also ready to produce bio-ethanol of same quantity.

Director of KCI, Dinesh Poudyal, said that the company has conducted the feasibility studies to produce bio-ethanol from cassava and is ready to set up the plant immediately after getting purchasing guarantee from the NOC.

"We need a mechanism that would maintain the buy-back guarantee of the ethanol produced by the industry. However, it seems that the NOC is still working on it," he said. The government-formed committees have also suggested to implement Ethanol Purchase Agreement (EPA) after finalising the procurement parameters.

 

Committee’s suggestion

The Committee on making suggestions about mixing bio-ethanol in petroleum products had recommended that up to 10 per cent ethanol cold be mixed with petrol in Nepal and if the quantity of former is to be increased further studies are needed.

Ethanol should be bought from the domestic industries, and such enterprises should be accorded national priority and they should be provided with the facilities given to the alternative energy projects, read the recommendations.

"If the production of bio-ethanol goes above the set standards of mixing with petroleum products, the government should provide the facility to the industries to export it to the third countries," read the committee report.

It also said that concessions should also be provided to the farmers.

The committee noted that the production and mixing of bio-ethanol would have positive impact on environment,  industries, import substitution and farmers.

 

Commercial farming of cassava

Kiaan Agriculture Research and Development Pvt. Ltd., a company promoted by the Non-Resident Nepalis (NRNs), is set to produce bio-ethanol from cassava (simal tarul) and has formulated a plan to promote its cultivation and buy back from the farmers. 

Established about four years ago, the company has conducted numerous discussions and interactions with the officials of the Ministry of Industry, Commerce and Supplies (MoICS) and Nepal Oil Corporation (NOC).

Nepal has high potential in commercial cultivation of cassava while communities are collecting them from forests and farmers are growing them in a small scale. According to government and private sector studies, it can be cultivated in plains as well in the hills. There is no segregate data on cassava production in the country, the Ministry of Agriculture and Livestock Development (MoALD) estimates shows that the overall annual production of root and tuber crops is around 100,000 tonnes.

KARD has proposed to promote the commercial cultivation of cassava in 99,000 hectares, primarily in and around Parsa district, stating that it would sign buy-back agreement with the farmers. Commercial farming of cassava can promote the use of fallow land created due to migration, foreign employment and menace of wild animals like monkeys and wild boars. About 60,000 hectares of cultivable land has remained fallow across the country. A kilo of cassava is sold at up to Rs. 70 at the Kalimati vegetable market during winter festival of Makar Sankranti.

Director of KARD, Dinesh Poudyal, said that this cash crop can create employment in the villages and can motivate youth to stay at their own homes as the commercial farming of cassava can yield about Rs. 50,000 income in a month from one hectare. Globally, cassava is the third largest source of carbohydrate after rice and corn, and is widely used to produce alcohol, starch, glucose, and sabudana (tapioca pearl). Brazil, Nigeria, Thailand, India, China, Malaysia and other East Asian countries grow cassava.

According to Poudyal, in the first phase, cassava production is possible in 22,000 ha which will create employment opportunity for 71,000 farmers and indirect benefit 440,000 workers.

Published in The Rising Nepal daily on 27 October 2024.  

FM Paudel directs revenue officials to intensify efforts to meet targes

Kathmandu, Nov. 5

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has directed the officials of revenue administration to intensify efforts in revenue collection.

Addressing a meeting with ministry secretaries and departmental chiefs at the Ministry of Finance at the Singha Durbar on Tuesday, Minister Paudel instructed them to go beyond average performance and ensure their teams are fully engaged in achieving revenue targets.

Stressing that standard efforts would yield only ordinary results, Minister Paudel emphasised that a 13 per cent increase in revenue mobilisation compared to the same period last year was not sufficient, Ministry of Finance (MoF) informed in a statement.

The government has set a target to collect Rs. 1419.30 billion revenue in the current Fiscal Year 2024/25 and has collected 19 per cent (Rs. 280.16 billion) of it in the first three and a half months, according to the data published by the Financial Comptroller General Office (FCGO). Last year, the government was able to rack up Rs. 247.41 billion (17.39 per cent) in the same period against the target of Rs. 1422.54 billion.

As mentioned in the budget of this FY, tax and non-tax revenue targets are set at Rs. 1284.20 billion and Rs. 135.09 billion respectively while grants target was set up at 52.32 billion.

By Monday, total revenue mobilisation by the government stood at Rs. 285.88 billion against the total expenditure from treasury at Rs. 382.51 billion, creating a gap of about Rs. 97 billion between the income and expenses of the government which means the government needs to raise funds from borrowing.

Meanwhile, the capital expenditure has remained just 9.24 per cent (Rs. 32.56 billion) against the total allocation of Rs. 352.35 billion. However, this is better than the performance of the last FY 2023/24 – Rs. 267.96 billion of the annual allocation Rs. 302.07 billion.

Amidst such a situation, DPM Paudel said that revenue collection should be carried out in accordance with the constitution as well as laws and in the nation's best interest, addressing taxpayers’ concerns in line with legal provisions, and urged officials to be proactive.

Minister Paudel further directed officials to take immediate measures to address emerging challenges in revenue collection and enhance coordination among security personnel and other inter-agency teams to curb revenue leakage. He said that any lapses in revenue collection should be met with prompt action against those responsible, the MoF said.

In support of these efforts, DPM Paudel assured leadership's commitment to implementing policy, structural, and procedural reforms to improve the revenue collection system.

The meeting was attended, among others, by Finance Secretary Dr. Ram Prasad Ghimire, Revenue Secretary Dinesh Kumar Ghimire, Chief of the Revenue Management Division Uttar Kumar Khatri, Directors General of the Department of Customs Hari Sharan Pudasaini, and DG of Inland Revenue Department Ram Prasad Acharya.

 Published in The Rising Nepal daily on 6 November 2024. 

Chandra Dhakal receives 'Caraka Buwana Award'

 Kathmandu, Nov. 5

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, who is also the honourary consul of Indonesia to Nepal, has received a prestigious 'Caraka Buwana Award' from the government of Indonesia.

The Caraka Buwana Award is a prestigious honour presented by the Ministry of Foreign Affairs of Indonesia which recognises individuals who have made significant contributions to strengthening bilateral relations with Indonesia, the Secretariat of Dhakal, informed in a statement on Tuesday.

This award recognises his significant contributions to enhancing bilateral relations between Nepal and Indonesia, especially in promoting tourism, cultural exchange, and economic ties between the two nations.

The award was presented by Heru H. Subolo, the Ambassador of Indonesia to Nepal on behalf of the government of Indonesia, during a special ceremony held in Kathmandu on Tuesday.

Ambassador Subolo commended President Dhakal, stating, “President Dhakal's unwavering commitment has significantly strengthened our nations' bond, fostering a collaborative spirit that benefits both countries.”

Dhakal said that this award serves as an inspiration to work towards a future of mutual growth and prosperity between Nepal and Indonesia.

He said that the two recent landmark agreements-- Bilateral Consultation Mechanism and the Visa Exemption Agreement for holders of diplomatic and official passports - signed on the sidelines of the 79th session of the UN General Assembly, are crucial for reinforcing the partnership between Nepal and Indonesia.

He called for the consideration of an on-arrival visa facility for Nepalese tourists to further strengthen cultural ties and tourism.

Dhakal has been serving as the honorary consul of the Republic of Indonesia to Nepal since 2010.

 Published in The Rising Nepal daily on 6 November 2024. 

Chiranjibi Adhikari appointed ICT member

Kathmandu, Oct. 30

Chiranjibi Adhikari, Secretary General of the CAN Federation, has been appointed as a member of the Information and Communication Technology (ICT) subcommittee under the Nepal Academy of Science and Technology (NAST). This appointment follows a decision from the 307th meeting of NAST's governing council, which restructured various subcommittees and included Adhikari on the ICT theme.

The subcommittee is chaired by Dr. Subarna Shakya, with other members including Dr. Manish Pokharel, Dr. Baburam Dawadi, Dr. Bhojraj Ghimire and Gunakeshari Pradhan. Pradeep Dhodari will serve as the member secretary.

NAST regularly forms subject-specific scientific subcommittees, with the ICT subcommittee recognised as an essential platform for significant decisions and advancements in technology. Upon his nomination, Adhikari expressed his commitment to leveraging his expertise to support technological progress in the country, the CAN Federation informed in a statement on Wednesday.

Adhikari is the immediate past president of the Centre for Cyber Security Research and Innovation and the current chair of the Information Security Response Team Nepal. He holds several international certifications in technology and has worked extensively on IT governance, cyber security, AI in cyber security, and information security management systems.

"He has consistently advocated for youth and start-up issues in the ICT sector and has actively contributed to policy development in information technology both institutionally and individually," said CAN. 

 Published in The Rising Nepal daily on 31 October 2024. 

Dr. Pun reappointed brand ambassador of NBL

Kathmandu, Oct. 30

Nepal Bank Limited (NBL), the country’s first bank, has renewed its brand ambassadorship with Dr. Mahabir Pun, Chairman of the National Innovation Centre.

Dr. Pun was initially appointed as the bank's brand ambassador in 2019, and the agreement has now been extended for another year.

On 12 Kartik 2081 (29 October 2024), a ceremony was held at Nepal Bank Limited’s head office in Kathmandu, where Chief Executive Officer of NBL, Tilak Raj Pandey and Dr. Pun signed the renewal agreement at a programme organised at the bank recently. Dr Pun expressed his pleasure at continuing his role with Nepal Bank, a historic institution with a proud legacy in Nepal’s banking sector, NBL said in a statement on Wednesday.

Likewise, CEO Pandey remarked that it is an honour to retain Dr. Pun, a distinguished personality and source of inspiration for all Nepalis, as the bank’s brand ambassador. He also expressed his appreciation for Dr. Pun’s continued association with Nepal Bank.

 Published in The Rising Nepal daily on 31 October 2024. 

Nepal earns Rs. 4.75 billion through carbon trading

Kathmandu, Oct. 29

The Alternative Energy Promotion Centre (AEPC) informed that Nepal has earned Rs. 4.75 billion (US$ 35.27 million) through carbon trading.

The income is made through eight different carbon trading projects operated by the AEPC since 2011 as the country reduced a total of 6 million tonnes of carbon emissions, its Executive Director of Nawaraj Dhakal said at the programme organised to celebrate the 28^th anniversary of the AEPC in the Capital on Tuesday.

The centre has earned US$ 2.87 million from carbon trading in the last Fiscal Year 2023/24.

According to Dhakal, about 6 million tonnes of carbon has been sold through the centre. Last year, it recorded the minimization of carbon emission by 542,000 tonnes.

Likewise, through the promotion of renewable energy technology, 542,866 metric tons of carbon emissions have been reduced and an income of US$ 28.05 million has been generated through carbon trading.

Dhakal mentioned that the amount of carbon trade will increase in the coming years as efforts and effectiveness of reducing carbon emissions are increasing.

"The key physical progress of the last year includes the installation of 1,312 KW mini/micro hydropower plants, 390 KW solar/wind minigrid plants, 8,306 solar home systems, deployment of 26,256 electric cookstoves and 4,508 metallic improved cookstoves," he said. Likewise, there was construction of 3.042 domestic biogas plants, 349 solar photovoltaic pumping schemes for drinking water and irrigation, and 311 institutional solar photovoltaic systems for powering remote healthcare facilities and community schools.

Addressing the anniversary programme, Minister for Energy, Water Resources and Irrigation, Dipak Khadka, said that the centre is playing an important role in Nepal's electrification and new laws are being drafted to further facilitate it so that it could meet the demands of changing time.

"The government has set a target of 100 per cent electrification within one year. In order to achieve this goal, a working group including the Ministry of Energy, Water Resources and Irrigation, Nepal Electricity Authority and AEPC has made a joint integrated action plan and started its implementation," he said.

Minister Khadka also mentioned that Nepal is trying to make carbon trade and electricity export the basis of prosperity. He informed that although there is an agreement with Bangladesh to export 40 megawatts of electricity, the government has made an action plan to export up to 8,000 megawatts. According to him, the Ministry has been trying to mobilise its subordinate bodies like the NEA and AEPC to achieve the set goals in the energy sector.

Likewise, Kushal Gurung, a member of the AEPC, pointed out the need to prioritise solar energy projects for Nepal's electricity development. He said that the solar energy project is becoming very effective in terms of technology and cost, and it is necessary to change the current share of the energy mix.

Gurung said that according to the energy mix policy, the goal is to achieve 10 per cent share of solar energy, but it is necessary to change it to 30 per cent. He suggested that while the reach of the national transmission of electricity is expanding, small hydroelectric power plants with millions of rupees of investment are facing problems and the government should repair them and create an environment to sell electricity to the NEA.

Meanwhile, through a close cooperation with the Green Climate Fund and local governments, the AEPC has initiated the implementation of the first GCF-funded project 'Mitigating greenhouse gas emissions through modern, efficient and climate-friendly clean cooking solutions.

This project aims to collaborate with local governments and private sector for accelerated deployment of clean cooking solutions and transform residential cooking sector by the installation of 500,000 electric cookstoves, 490,000 tier 3plus improved cookstoves and 10,000 biogas plants in 150 local levels of 22 districts in Tarai region of Nepal in five years period.

According to the AEPC, the project will benefit 1 million households.

Meanwhile, the AEPC has awarded Tara Khola Hydropwer Limited of Baglung district with the Suprabidh Memorial Renewable Energy Award in Small and Micro Hydropower Category. In Solar Energy Category, the award is given to Suryodaya Urja Pvt. Ltd. while in Biomass Energy Category, Jandadevi Nepal Urja Pvt. Ltd. and Dumkibas Poultry Farm Pvt. Ltd., Nawalparasi received the award.

 Published in The Rising Nepal daily on 30 October 2024. 

AHF calls for protection of lower-middle income countries

 Kathmandu, Oct. 28

The AIDS Healthcare Foundation (AHF) Nepal has called for the protection of the lower middle imcome countries in Asia and the world.

Emphasising Asia's critical role in advocating for equity in the World Health Organization's (WHO) Pandemic Agreement, the organisation has urged the decisionmakers to help reshape a framework that ensures all countries will be protected from future global public health crises, particularly lower-income countries in Asia and globally.

The AHF Nepal has been running advocacy as part of the global Save Our Society (SOS) campaign, said Dibya Raj Joshi, Country Programme Manager of the AHF Nepal.

The SOS campaign seeks to address the glaring inequities that have historically plagued global health responses, particularly during the COVID-19 pandemic.

"As the Pandemic Agreement negotiations near their final stages, AHF emphasizes that these talks cannot conclude successfully unless equity is made an integral and binding part of the agreement," the AHF Nepal said in a statement. The current proposal, favoring high-income countries and pharmaceutical companies, fails to adequately address the needs of low- and middle-income countries.

"The COVID-19 pandemic exposed deep vulnerabilities in global healthcare, partícularly across Asía, highlighting the need for more equitable and decentralized health systems. As discussions around the WHO Pandemic Agreement near their end, Asia must champion a framework that promotes technology transfer and decentralizes the production of vaccines and other lifesaving commodities," he said.

According to him, this strategic shift would safeguard underserved regions in the Global South and secure Asia's health and economic stability.

By advocating for equity and building regional pharmaceutical capabilities, Asian nations can ensure collective resilience in future pandemics. Now is the time for Asia to lead this global effort, ensuring a safer and healthier future for all, added Joshi.

According to the AHF Nepal, issues necessary to create global health equity in the WHO Agreement are facilitating regional production capacity, unrestricted technology transfer, long-term binding financial commitments from high-income countries to support pandemic preparedness, and effective participation of civil society.

There should be oncrete mechanisms to facilitate the local production of vaccines, diagnostics, and therapeutics in the Global South, said Radheshyam Shrestha, Programme Manager at the AHF Nepal.

This requires a binding roadmap for the transfer of knowledge, technology, and long-term sustainable financing, as mainted in tje agreement.

The pandemic fund should be of a long-term nature and it must support the lower middle-income countries in addressing emergencies, lessening damage and create preparedness plan, said Joshi.

He said that the fund should be allocated on the basis of the size of population.

AHF the largest global AIDS organization, currently provides medical care and/or services to more than 2 million clients in 48 countries worldwide. 

 Published in The Rising Nepal daily on 29 October 2024. 

Bankers voice for establishment of asset reconstruction company

Kathmandu, Oct. 27

Bankers have stressed the assessment of the potential crisis that the non-performing loans (NPLs) and non-banking assets (NBAs) could create in the banking system of the country and the establishment of an asset reconstruction company (ARC) for their management.

Speaking at a symposium on Asset Reconstruction Business organised by the Confederation of Banks and Financial Institutions in Nepal (CBFIN) in the Capital, they said that the solution to the challenges posed by the growing NPLs and NBAs should be sought as soon as possible.

President of CBFIN, Upendra Poudyal, said that some people are not paying their loans owing to various financial challenges while some have intentionally deterred from it.

"Whatever might be the reason, the NPL has been becoming riskier. The BFIs have to focus more on debt recovery and management of non-banking assets rather than purely banking services and activities. It has created challenges both to the BFIs and the economy," he said.

According to Poudyal, the problems that have gradually appeared in the management of the increasing non-performing loans and the sale of the properties held as collateral have not been carried out and the BFIs have to accept them as the non-moveable assets.

"In such a situation, we need an asset reconstruction company so that the BFIs can focus on purely banking activities," he said.

Former CEO of Asset Reconstruction India Limited (ARCIL), Vinayak Bahuguna, said that although there is a need to create ARC, special caution should be paid while creating one.

According to him, the success of asset reconstruction/asset management companies depends on the country's financial stability and dynamism, favourable environment and policy, and political commitment and support.

"Non-performing loan/property statistics, statistical analysis and classification, investment, investor/market conditions, favourable legal environment, and regulatory competence and efficiency are the other factors that determine the success of the ARCs," he said.

Although some problems have been observed in the initial management and operation of such companies in India, the positive results are emerging in the recent times, said Bahuguna.

Speaking at the programme, bankers said that they have been raising the issue regarding the establishment of appropriate institutions for the proper management of the NPLs and NBA after the COVID-19 pandemic. "Although the establishment of an asset management company has been conceptualized as a policy, no meaningful initiative is being taken," said Rajesh Upadhyay, Senior Vice President of CBFIN.

The bankers agreed that the establishment of such a company has become the need of the day as there has been a massive contraction in the banking business as the number of non-banking assets put up for auction and foreclosures has increased, and it has gradually affected the overall economy.

As bad loans and non-banking assets of banks and financial institutions are piling up every year, the situation is gradually heading towards adversity, so the bankers said that there should be no delay in opening a company of a permanent nature in order to deal with this problem in the long term.

 Published in The Rising Nepal daily on 28 October 2024. 

Everest Colour Limited to issue shares to public

Kathmandu, Oct. 27

Everest Colour Limited, a paint manufacturing company, is planning to issue shares to the general public soon. The company’s Board of Directors has decided to present the proposal for the Initial Public Offering (IPO) at the general meeting scheduled for November 16 this year.

If the IPO is issued as planned, Everest Colour will become the first among paint manufacturing companies in Nepal to do so. The company, which has a paid-up capital of Rs. 260 million, intends to issue 15 per cent of its shares to the public. This means 390,000 shares, valued at Rs. 39 million, will be available for public purchase.

Additionally, at the upcoming general meeting, the company will elect five directors to represent the founding shareholders on its management committee.

 Published in The Rising Nepal daily on 28 October 2024. 

Country ready for flight of progress: PM Oli

Kathmandu, Oct. 27

Prime Minister KP Sharma Oli has said that since the ground work for the development of the country has been done, the country will be ushered into the path of progress if everyone worked together.

Addressing the opening session of the Non-Resident Nepali Day and Annual General Meeting of the Non-Resident Nepali Association (NRNA) in the Capital on Sunday, Prime Minister Oli said, "We now have latest technology and equipment while the necessary infrastructure for development such as roads have been developed. There is no district or land that is remote. If we work together, we can make the country prosperous."

He urged the NRNA to maintain the image of the organisation and keep it united, and avoid 'political tug of war'. Stating that there would be no interference from the government in the matters of the Association, he said, "I am the Prime Minister of the country, not only chair of the CPN (UML). Likewise, the President of the country also does not belong to any particular political party, he is the head of the nation. All the posts of Speaker of the parliament, chief justice are common posts. We will act accordingly."

Recalling that he talked about the NRN movement with Dr. Updnera Mahato in Moscow in 1999, Prime Minister Oli stated that the government will not skimp on giving recognition and necessary facilities to the NRNs.

Speaking on the occasion, Home Minister Ramesh Lekhak said that the NRNs have greatly contributed to the nation.

"NRNs are unpaid ambassadors around the world. Nepal's image will be like how you project Nepal," he said. Home Minister Lekhak said that even though citizenship was given to non-resident Nepalis, it was not used. He also promised to create necessary provisions to facilitate the NRNs in using the citizenship in government offices and related works.

President of the NRNA, Dr. Badri KC, said that government interference has created problems in the movement of the NRNA. "The problem created by repeated government intervention can be solved through discussions. I have reached more than 115 countries of the world to introduce Nepal and improve its image. We are always ready to assist when natural disasters occur in Nepal," he said.

Stating that Nepalis living abroad have sent more than Rs. 1,500 billion remittances annually, he said that some large investment has also come in.

"But we are investing in Nepal as foreigners. The law should be amended to allow all types and sizes of investment," said Dr. KC. According to him, the citizenship provided by the government to the NRNs is of no use for them in any government work. He objected to the moves of the Crime Investigation Bureau of the Nepal Police during the last general assembly and arrests of NRN officials.

The annual general meeting and Global Conclave 2024 on 'Transformation and Unity: Continuity in Labour, Investment and Citizenship' will run till Monday. The event features seven plenary sessions which are being attended by over 500 representatives.

The first day of the conclave discussed infrastructure development for Nepal’s economic transformation, citizenship for Non-Resident Nepalis, voting rights, and issues concerning Gurkhas and people of Nepali origin abroad (PNO), as well as the impacts of climate change on women and children. The topics will also include science, knowledge, and technology transfer for a prosperous Nepal.

The second day will cover topics such as empowering expatriate youth for nation-building, ensuring safe, organised, and dignified foreign employment and social security, and promoting tourism in Nepal: policy development, expectations, challenges, and the role of NRNs.

The AGM of the NRNA will be held on October 28, with representatives from over 60 countries participating in person and virtually. Officials and delegates from most of the chapters are in Kathmandu to attend it. 

 Published in The Rising Nepal daily on 28 October 2024. 

Minister Adhikari promises to solve problems in cooperatives

 Kathmandu, Oct. 27

Minister for Land Management, Cooperatives and Poverty Alleviation, Balram Adhikari, has expressed his commitment to gradually solving the challenges in the cooperative sector and establishing it as a strong pillar of the national economy by connecting the nation's income generation with the people.

"Cooperatives are run by the old policy while Nepal's cooperatives cannot run by copying the foreign styles. It is necessary to create a policy that suits our society, consciousness and geography," he said while speaking at a Dialogue on Cooperatives organised by the National Cooperative Federation (NCF) in Lalitpur on Sunday.

There are problems in cooperatives because no efforts were made to control wrongdoers by enacting rules and procedures on time, he said.

He said that there was a discussion to create a new regulatory body for the cooperatives as it was necessary to solve the challenges that emerged in the sector.

Likewise, he informed that a circular was sent to the Nepal Rastra Bank to include cooperatives in the Credit Information Bureau of Nepal and the Deposit and Credit Guarantee Fund that is currently in place for banks and financial institutions.

According to Minister Adhikari, it seems that the campaign itself is in confusion regarding the creation of the second-tier regulatory body. He urged everyone to come together on how to go about it.

He expressed his concerns that the cooperative promotion fund was to be returned to the cooperative itself, but the cooperatives had stopped depositing funds in it. Minister Adhikari said that problems in cooperatives were created because there were no statistics on cooperatives even with the government.

"The Ministry of Land Management, Cooperatives and Poverty Alleviation has asked all concerned bodies to collect the data and send it to the ministry," he said.

President of the NCF, Om Devi Malla, said that a campaign to enter a new phase of cooperatives has started by establishing a common opinion between the government and the cooperatives through policy dialogue.

Likewise, former Finance Secretary, Rameshwar Khanal, said that cooperatives should strengthen self-regulation rather than looking for an external regulatory body. He said that the federation should lead the cooperative at the highest level.

He said that off-site and on-site regulations could be made effective.

Shriman Kumar Gautam, Chairman of the Cooperative Management Committee, informed that the depositors have demanded Rs. 40 billion from 19 troubled cooperatives and the savings of two organisations have been returned to the depositors. 

 Published in The Rising Nepal daily on 28 October 2024. 

Yunan hands over solar-powered community bathroom

 Kathmandu, Oct. 25

China’s Yunnan Province has handed over a solar powered community bathroom named Unicsolar Shower Station with photovoltaic roof to Lalitpur Metropolitan City of Nepal.

Yunnan Commercial Representative Office in Nepal handed over the projects to Ward-3 of Lalitpur on Friday.

The Unicsolar Shower Station is equipped with 4,000-liter hot water facility generated by the solar energy and has three shower rooms each for males and females. The community bathroom will benefit at least 80-100 persons to take shower per day.

In addition, the rooftop photovoltaic project has an installed capacity of 36kw which could generate around 60,000kwh annually and provide green and free energy to the community.

Speaking on the ocassion, Mayor of Lalitpur Metropolis, Chiri Babu Maharjan termed the project as 'excellent state-of-art facility' and said that the city office wanted to explore collaboration with the Yunnan Province in more avenues in future.

Chinese Ambassador to Nepal Chen Song remarked that the project, based on the Chinese development model, could be of great significance to the local people of Lalitpur.

On behalf of Yunnan Provincial Government, the Yunnan Commercial Representative Office in Nepal was established in 2015. The Office has been working as a business cooperation window and communication platform to bridge Yunnan and Nepal.

Yang Chenfeng, Director of the office in Kathmandu, informed that they have executed nine livelihood projects since 2022 including two Friendly Parks, three Solar Power Projects, two Public Shower Projects and two School Bags Donation programme in various districts.

The project is funded by Yunnan People's Association for Friendship with Foreign Countries, supported by Yunnan Provincial Energy Investment Group, and implemented by YPCRO in Kathmandu.

Shree Gopal Maharjan, Chairman of Lalitpur-3 Chairman, shared that the project reflects Chinese development and could be a great learning for Nepal to implement similar practices in other places.

 Published in The Rising Nepal daily on 26 October 2024. 

DPM Paudel urges US investors to invest in Nepal's IT sector

 Kathmandu, Oct. 25

Deputy Prime Minister and Finance Minister of Nepal, Bishnu Prasad Paudel, has urged the US Chamber of Commerce to consider investing in Nepal's information technology (IT) sector.

DPM Paudel made this appeal during a roundtable discussion with US business representatives held in Washington DC, USA on Thursday. He is in the USA to attend the annual meeting of the World Bank Group and International Monetary Fund.

He said to the US businesspersons that compared to other countries, Nepal offers affordable and skilled IT professionals, making it a competitive investment destination, according to the Secretariat of DPM Paudel. Emphasising that recent legal and procedural reforms have fostered a conducive environment for investors, he encouraged US businesses and investors to leverage these opportunities.

Informing the government’s policy to allow companies to set up in the IT sector with minimal capital (just US$ 1) and offering a 50 per cent tax break for the first five years, he appealed for increased US investment in this promising industry.

Speaking at the meeting, Senior Vice-President for South Asia at the US Chamber of Commerce, Atul Keshap, said that dozens of American companies are keen to invest in Nepal. He commended Nepal’s recent investment-related legal reforms, initiation for a sovereign credit rating, and formation of a high-level Economic Reform Advisory Commission, which he said contribute to a positive business climate.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, also highlighted Nepal’s promising investment environment and encouraged American entrepreneurs to expand their businesses in Nepal to reap benefits.

According to a statement issued by the FNCCI on Friday, Dhakal said that in the past three decades, the market growth, duty-free access to developed countries like India, and energy purchase and sale agreements have made Nepal an attractive destination for foreign investors.

He also informed American investors about the immense potential in hydropower due to the 10,000 MW power purchase agreement with India and the recent understanding with Bangladesh.

"Stating that Nepal's blend of nature and culture attracts tourists, President Dhakal invited investors to invest in tourism infrastructure. He highlighted the potential to develop hill stations with a cool and healthy environment within a two-hour distance from the Indian border, which has the world's largest population," read the FNCCI statement.

Representatives from the US Chamber of Commerce attending the event expressed their interest in investing across various sectors in Nepal, including IT, read the statement.

Later on Thursday, DPM Paudel met with IMF Deputy Managing Director Bo Li where he expressed appreciation for the IMF’s support of Nepal’s economic development through concessional loans, policy advice, and capacity-building initiatives. He said that the IMF’s assessments have reflected improvements in Nepal’s economy, and he committed to advancing economic reforms in line with IMF recommendations.

Likewise, DPM Paudel also met with Millennium Challenge Corporation (MCC)'s CEO Alice Albright and Vice-President Cameron Alford. Discussions with them were focused on the latest progress in MCC project implementation in Nepal and possibilities for further financial support.

 Published in The Rising Nepal daily on 26 October 2024. 

NYEF opens registration for Start-up Awards

Kathmandu, Oct. 24

Nepalese Youth Entrepreneurs Forum (NYEF), the youth wing of the Federation of Nepalese Chambers of Commerce and Industry, Kathmandu Chapter has announced the launch of the fourth edition of the NYEF Startup Awards.

"This competition aims to recognise and empower Nepal's innovative entrepreneurs," the NYEF said in a statement on Thursday.

Titled the 'Startup Awards 4.0', the competition provides a platform for entrepreneurs to present their business ideas, network with industry leaders and receive guidance to elevate their businesses to new heights.

Previous winners of the competition such as Doctors on Call, Karobar App, Galli Maps, Pet Mama, and Delish Dairy, have achieved remarkable success through this initiative.

According to the NYEF, the participating startups will get various benefits including mentorship, networking, business development support, pitching opportunities and cash prizes.

The participating start-ups will have intensive guidance from experienced entrepreneurs and industry experts while they also have opportunities to connect with other entrepreneurs, investors and specialists across Nepal.

Likewise, essential assistance will be provided to empower and elevate startups professionally, and there will be a chance to present business ideas to national and international judges. Best start-ups will compete for cash prizes of Rs. 400,000, Rs. 200,000 and Rs. 100,000.

"The competition will be based on a structured selection process, starting with the selection of 20 promising startups. On the final day, seven finalists will present their business ideas to the judges," read the statement.

Startups that meet the eligibility criteria—operating for less than five years and registered with the Nepal government—can apply for the competition till November 15. 

 Published in The Rising Nepal daily on 25 October 2024. 

DPM Paudel stresses on easy access to climate finance

 Kathmandu, Oct. 24

Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has called upon the global community to simplify and make more accessible the operational systems of international financial funds established for climate finance.

Speaking at the annual meeting of the World Bank Group and the International Monetary Fund in Washington DC of the USA, DPM Paudel has urged the development partners and entire international community to act responsibly and sensitively towards climate justice.

He informed the international representatives that despite Nepal's unique biological diversity, the country is increasingly facing natural disasters caused by human activities, which present challenges in securing sufficient financial resources for mitigation and adaptation efforts. He further noted that although Nepal’s contribution to climate change is minimal, the country bears a significant burden from its adverse impacts.

According to him, over the past five years, the Government of Nepal has spent an average of US$ 50 million every year on biodiversity conservation. "But there is a need for additional financial resources so there should be effectiveness in the mobilisation of support by the international development partners and global environmental funds. Such support should come as budgetary support to the government," he said.

He also urged the international community to ensure the effective operation of the loss and damage fund established to support climate justice.

 Published in The Rising Nepal daily on 25 October 2024. 

Govt to facilitate explosive import

 Kathmandu, Oct. 24

Foreign Minister Dr. Arju Rana Deuba has said that the government is ready to facilitate the import of explosives required for hydropower projects and the export of electricity.

"I will apply my full efforts to facilitate the import of explosives that are a critical need for the hydropower projects," she said to the delegation of the Independent Power Producers Association of Nepal (IPPAN) led by its president Ganesh Karki that called on her at Singha Durbar on Thursday.

FM Deuba also said that the Ministry of Foreign Affairs (MoFA) is planning to establish an economic diplomacy unit at the Ministry to deal with such issues and other related matters.

Karki said to the Foreign Minister Dr. Deuba that although the private sector has contributed greatly to Nepal's energy sector, it is now facing challenges due to the complexities in explosives import. It has hiked the construction cost and delayed the projects due to which they have to pay penalty to the Nepal Electricity Authority (NEA).  

"If the construction of hydropower projects is moved ahead at the current pace, the target of 28,500 megawatts of electricity production in 10 years will not be met, and it will impact the target of exporting 10,000 megawatts of electricity to India in 10 years as well," said Karki.

He requested the FM to facilitate with foreign agencies to bring in foreign investments as there is a need for huge investment to generate 28,500 megawatts of electricity in 10 years.

The IPPAN said that the explosives in Nepal are transported and stored in close vigilance of the Nepali Army. Every project has maintained an army camp at the project site at its own expenses, and everything from the storage of explosives to their use will be done only under the authority of the army.

As of now, Nepal needs 400 tonnes of explosives per month and about 5,000 tonnes a year.

120 projects out of 183 projects under construction are being affected due to the shortage of explosives as it couldn't be imported from India on time.

India has been allowing the import of explosives only in very small quantities for the last two years. Due to this, not only the private sector but also various infrastructure projects initiated by the government are being affected, according to the IPPAN.

The promoters of the hydroelectricity projects have been saying that the non-availability of explosives is one of the main reasons behind the increment in the cost of infrastructure projects.

Karki reminded the Foreign Minister that while Nepal's total electricity capacity is about 3300 megawatts, about 80 per cent of it is developed and managed by the private sector and 80 per cent of the under construction and that are under the feasibility study are private sector projects.

In the past two and a half decades, 186 projects worth 2,500 megawatts have been developed by the private sector developers, while projects generating 4,000 megawatts are under construction and projects of the same capacity are awaiting financial closure after signing Power Purchase Agreements (PPAs) with the NEA. Likewise, projects of about 10,000 MW capacity are waiting for the PPA. 

 Published in The Rising Nepal daily on 25 October 2024. 

Intl conference on inclusive insurance kicks in Capital

Kathmandu, Oct. 22

International Conference on Inclusive Insurance (ICII) 2024 has kicked off in the Capital on Tuesday with the aim of deliberating on advancing inclusive insurance solutions for low-income and vulnerable households and micro, small and medium-sized enterprises.

The 20^th edition of the conference, hosted by the Nepal Insurance Authority (NIA), Nepal Insurers' Association, Life Insurance Association Nepal and Nepal Laghu Bimak Sangh, has drawn over 500 participants, including experts from NGOs, development organisations, regulatory bodies, policy experts and insurance industry representatives from 43 countries across the globe.

According to the organisers, the 5-day ICII 2024 features 25 sessions which will focus on the topics like climate risk insurance, digital innovations in micro-insurance, and strategies to overcome barriers to scaling inclusive insurance.

Addressing the inaugural session of the conference, Vice-President of Nepal, Ram Sahay Prasad Yadav, emphasised the importance of inclusive insurance for Nepal.

According to him, inclusive insurance is a crucial step in strengthening the economic and social structure of the country, offering economic security to various members of society, especially the poor and deprived.

Vice-President Yadav stressed the importance of insurance in protecting people from financial adversities and ensuring their financial stability in unexpected situations. "Health and life insurance are particularly emphasised in Nepal to ensure medical facilities and family life security for every individual in society," he said.

He urged the government and insurance companies to work together to ensure that every person, whether in rural or urban areas, has access to insurance.

Vice-President Yadav highlighted Nepal's vulnerability to climate change, with around 80 per cent of the population exposed to climate-related risks. He pointed out the low level of insurance awareness and the significant insurance protection gap, which leaves many citizens vulnerable to growing threats.

Speaking on the occasion, Aroup K. Chatterjee, Principal Financial Sector Specialist to the Asian Development Bank, said that insurance eases the financial burden of the government during the disasters.

"The savings with the insurers can also be mobilised to the development sectors including infrastructure construction," he said.

He informed that protection gap is alarmingly high globally with about 95 per cent of risk exposure uninsured in emerging markets.

According to Chatterjee, in the Asia-Pacific, the risk gap is estimated at 886 billion dollars in premium term. About 280 billion dollars protection is needed against the natural disasters in the region but less than half of it is insured.

Likewise, the threat of climate risk hangs over the protection gaps with the Asia-Pacific likely to suffer the worst economic consequences. "It is threatening industry, machinery and livelihood. We need adaptation and mitigation measures against such threats. Clear understanding of the climate risks and how insurance can contribute to building societal resilience is therefore called for," he said.

Chatterjee said that the insurance industry can help people better tap into insurance and other financial products by focusing on affordability, accessibility, awareness, administration and trust.

The insurance sector must firmly address the protection gap through innovation, technology, partnerships, better regulation, consumer protection, and monitoring and evaluation, he said.  

However, commercial reliability of the projects and personalizing the insurance plans are also important factors. According to Chatterjee, the sector needs to collaborate with the government agencies and create a strong public-private partnership while the regulatory bodies should promote growth and competition while also protecting consumer rights, and maintaining transparency in the market and business. 

Likewise, Surya Prasad Silwal, Chairman of the Nepal Insurance Authority, called for collaborations among the authority, insurers and other concerned agencies from the public and private sector.

"The government has prioritised insurance in its current fiscal policy according importance to it. We are putting our efforts to bridge the protection gap," he said while also stressing the need for raising awareness taking note from the insignificant claim after the last month's natural disasters.

Chunky Chhetry, President of Nepal Insurers' Association, said that the insurance industry in Nepal has to set some parameters to evaluate, monitor and measure the success of the inclusive insurance products and programmes. 

 Published in The Rising Nepal daily on 23 October 2024. 

MoFA is ready to improve service delivery at foreign missions: FM Dr. Deuba

The past 100 days have been highly engaging for Foreign Minister Dr. Arzu Rana Deuba with multiple national and international events including the United Nations General Assembly, Women Foreign Ministers' Meeting and Asia Cooperation Dialogue taking place during the period. She represented Nepal at various forums and panels at the 79^th UNGA and put forth Nepal's agenda on peace, development and climate change. Modnath Dhakal of The Rising Nepal daily caught up with Minister Dr. Deuba to talk about the progress and notable achievements of the Ministry of Foreign Affairs (MoFA). Excerpts:

 

It has been 100 days since you were appointed Minister for Foreign Affairs. How would you assess the current state of government's international relations during this period?

Probably, the most important work that we did in the recent past is the successful representation of the country at the 79^th United Nations General Assembly (UNGA), Summit of the Future and forums of the Least Developed Countries (LDCs), Landlocked LDCs and G77 plus China. Nepal also got a chance to speak at the UN Security Council which has enhanced the visibility of the country. PM KP Sharma Oli and I both got  extremely busy at the UNGA. PM chaired a session in the 'Summit of the Future' and for the LDCs. We informed the world about the successful conclusion of the domestic process and voiced our concerns for the world peace and updated the international community about the peace process in Nepal. Meanwhile, we also signed  various bilateral mechanisms and agreements including with the United States of America (for the first time since the establishment of the bilateral relationship), Indonesia and Romania. These are achievements that will benefit us in the long run. Nepal and Indonesia have signed agreements for bilateral consultation mechanism and visa exemption agreement for diplomatic and official/service passport holders.

We held about 43 meetings at the Foreign Minister's level and 47 at the Prime Minister's level at the UNGA while 36 courtesy calls and 31 bilateral and multilateral discussions were conducted. As the Foreign Minister of Nepal, I attended many sessions at the Women Foreign Ministers' meeting in Canada. It was a global forum of foreign ministers.

 

What efforts have been made to improve the works and services under the Ministry of Foreign Affairs (MoFA), and what areas still require attention? Could you share your experience?

At the domestic front, we are conducting O&M of the MoFA which has long been pending, and various posts were added. I am hopeful that the staffing of the ministry and concerned agencies will be completed soon. Similarly, preparations have been initiated for the Sagarmatha Dialogue, an international platform to raise national and global issues. Likewise, the Ministry is also working to maintain the smooth arrangements of passports after the stock is used up in 2025.

 

In August, you visited India and met with Prime Minister Narendra Modi. What were the key achievements of this visit, and how can Nepal-India relations be further advanced in new directions?

Prime ministers of Nepal and India held a brief meeting in New York on the sidelines of the United Nations General Assembly and Indian PM Narendra Modi has said that he would visit Nepal soon. He is likely to visit Nepal sometime during this winter. Trade, connectivity and energy issues were not raised during that goodwill visit but we have been taking stock of the bilateral engagements at the multiple fronts and the MoFA has consulted with all the concerned ministries before Dashain. Another meeting will be held on the issues related to the West Asia Region and China as well. The MoFA will be highly updated and competent regarding the bilateral as well as multilateral issues concerned with   Nepal.  

 

As the current Chair of the South Asian Association for Regional Cooperation (SAARC), what role can Nepal play in expediting the SAARC summit?

SAARC summit can't be called unless all the members are agreed for it. The foreign minister of India has said that the environment to organise the summit has not transpired yet. But we are in communication with all the members of the SAARC and trying to bring every member to the table. Various mechanisms under the regional body are active and keeping the regional aspirations alive.

 

Nepali citizens are affected by wars and conflicts in various parts of the world, with some even captured by military forces or groups in different countries. What initiatives has the ministry taken to ensure the safety of these citizens, and what have been the results?

Many Nepalis are living illegally in war-affected countries which have created challenges for the government. There are problems in Iraq and other countries as well where Nepalis are living illegally. I asked the Neplai Ambassador to Kuwait and got updates that there is no situation to go to Iraq. In such a situation, it is difficult to contact Nepali citizens. I would like to urge all Nepali brethren not to go to the countries like Iraq affected by war or terrorism. We have dedicated a joint-secretary to establish communication with the Nepalis in Lebanon seeking to contact their home but none contacted us but more than 100 families of the Nepalis living illegally or legally there have urged the government to ensure safety. Our embassy in Egypt is monitoring the situation in Lebanon and rescue operations can be managed, if necessary. So far, all Nepali citizens are safe there.

 

Government agencies and the private sector have expressed concerns that economic diplomacy has not been given enough priority by the government. What is your view on this matter?

I would like to further the work done by my predecessors and facilitate the process of economic diplomacy. Ministries of tourism, industry, water resources and finance as well as the Investment Board and other concerned agencies will be consulted to advance economic diplomacy. I would like to inform you that the MoFA is serious about practicing economic diplomacy. We have talked with the representative organisations of the private sector, and honorary consuls working in Nepal. Issues will be discussed and sorted out to act upon so that Nepal could attract more investment and technology, and promote tourism and international trade. We need to create an amicable environment for that at the earliest. We can't reach any conclusion or make an agreement without having consultations with the Ministry of Finance, Ministry of Law, Ministry of Communication and other concerned agencies.

 

What is the recent controversy about the Non-Resident Nepali Association?

 The full text of the court verdict on the NRNA dispute was issued before Dashain. It has directed the concerned parties for a unity conference, so the MoFA has asked the NRNA to uphold the decision. I have informed the Prime Minister about the verdict and steps taken by the MoFA. There is no controversy, we are just following the principles of rule of law. Earlier, there was some confusion about the decision but the full text has clarified it.

 

There have been many agreements with China regarding the Belt and Road Initiative as well as for cooperation. However, their implementation appears weak. What role does the ministry play in making it result-oriented?

The BRI is not a new issue for us. Nepal and China have been cooperating for the initiative for the past many years. We have submitted four projects to be developed under the BRI. I think, now China has presented the BRI as a large framework and most of the projects will come through. I had a brief goodwill meeting with the Foreign Minister of China, Wang Yi, on the sidelines of the UNGA. There will be more high-level exchanges in the near future, they will sort out the remaining complexities.

 

Have there been any efforts to strengthen the foreign policy of Nepal?

Foreign policy is the policy of the country, not that of any particular political party. We have powerful nations/economies on both sides. So our focus should be on remaining an independent country and be recognised at the global level. Earlier, FM Pradeep Gyawali had initiated work in this direction. It will be advanced. Everybody around the globe appreciates the hard work and integrity of Nepalis and many of them want to come here. This is our strength.

 

There are growing concerns about the economic and managerial conditions of embassies in various countries. What steps are being taken to improve these conditions?

The MoFA is set to provide additional staff to the embassies that have high work load and need to cater to a large number of Nepali citizens living in the countries of their jurisdiction. Councilors need to provide dozens of services including the vital registration, so we sometimes get complaint and frustrations from Nepalis from some of the countries. A concept to mobilise mobile team to clear the backlog of services is also in the offing. The ministry is ready to address the anomalies in service delivery at the missions abroad.

 

There have been questions regarding whether meetings and events involving foreign ambassadors and dignitaries adhere to diplomatic protocol. Does the ministry have any plans to address these concerns?

Diplomatic engagements of the political leaders and other authorities should be according to the diplomatic protocol and code of conduct must be observed. We take the issue so lightly that every political leader is ready to meet any foreign ambassador any time. Protocol should be followed by every concerned office and individual. Many meetings with the foreign diplomatic representatives happen without the knowledge of the MoFA, however, this is the matter that should come into the knowledge of the ministry. I think, the political leaders and other concerned agencies should be informed and updated about the diplomatic protocol.

 

The goal of securing visa-free or visa-on-arrival access for Nepalis to 60 countries has so far reached only 35. How does the ministry plan to expand this further?

The government puts a huge effort to facilitate the visa-free entry of Nepalis to various nations but Nepalis reach there and live illegally which has created challenges for the government as well. However, the MoFA is assessing the situation and addressing such challenges.

 Published in The Rising Nepal daily on 22 October 2024. 

Economic Reforms Underway Amid Challenges

The government has completed its first 100 days with some steps to initiate economic reforms and multiple measures to strengthen the private sector's confidence, while macroeconomic indicators registered a positive trend.

In its move to address the long-awaited need of the economy and fundamental instrument to attract foreign direct investment (FDI), the government initiated the sovereign rating of the country. Although the talks to conduct such ratings began more than five years ago, the process was expedited earlier this year, targeting the Investment Summit in April, but that couldn't witness any progress. Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, launched a fresh initiative to complete the process, and a team from the Fitch Credit Rating agency has already started its work with initial discussions with the Nepal Rastra Bank, Ministry of Finance (MoF), National Planning Commission, and other concerned agencies as well as some private sector companies.

The sovereign credit rating will increase Nepal's creditworthiness and provide a tool for financial stability, especially after graduation from the Least Developed Country (LDC) status, as the country will lose a significant amount of foreign grants and has to increase its competence to obtain loans. With the credit rating results in hand, donors and investors can make better assessments of the financial risk in the country.

Another major step the government has taken after assuming power is the formation of the High-Level Economic Reform Commission, which is led by former Finance Secretary and economist Rameshwor Khanal. The commission is entrusted to find out the reasons that are holding the country back in terms of economic progress and business development. Private sector, especially the Federation of Nepalese Chambers of Commerce and Industry, which also has formulated an economic transformation strategy for the country. This commission is expected to find out the bottlenecks in private sector development, policy hurdles, and strategic obstacles in doing business and economic progress. It is likely to further improve the relationship and cooperation between the government and private sector.

To facilitate the private sector enterprises, the government has formulated rules for the issuance and transaction of the securities of the small and medium enterprises. The MoF has also implemented a new strategy to base the customs evaluation on real transaction price, formulated rules for customs duties to simplify the customs process, started the use of vehicle and luggage scanner machines at Tatopani Customs Office, and started a lab module at the customs offices in Birgunj, Bhairahawa, and Nepalgunj.

Probably, confidence building in the private sector is the immediate need of the country in order to make the local and national economies more robust, create jobs, and enhance exports. The banks and financial institutions are sitting on huge piles of money, with the total deposits surpassing Rs. 652 billion. As there is a weak demand of credit in the market, the Nepal Rastra Bank (NRB) has mopped up Rs. 100 billion last weeks, responding to the lowering interest rate that went below the 3 per cent mark. According to the private sector, they have paused their plan for the new business ventures as well as the expansion of the industries. DPM Paudel has expressed confidence that the new steps to facilitate the enterprises, including the promotion of export-oriented industries, can reverse the scenario to a positive one.

To make reforms in the public expenditure and revenue mobilisation, DPM Paudel had issued a 73-point guideline to make the budget implementation more effective and result-oriented. It has helped to make some improvements in the mobilisation of revenue and overall expenditure of the government. 

According to the MoF, capital expenditure this year has been up by 65 per cent compared to the same period of the previous year, while revenue collection has been increased by 13 per cent.

However, budget performance has not been encouraging in the first 95 days of the current fiscal year 2024/15, with total expenditure hovering around 17 per cent this year and last year, according to the statistics published by the Financial Comptroller General Office. Capital expenditure has been just 8.36 per cent of the total allocation of Rs. 352.35 billion this year, while it was 7.92 per cent of Rs. 302.07 billion last years. But revenue collection is up by 2 per cent on a year-on-year basis in the first three months.

It seems that Finance Minister Paudel needs to innovate some novel approaches to reform the revenue collection, which continues to be dismal even against the poor expenditure performance of the government. For example, in just three months of the current FY, total government receipts, including revenue, grants, and others, stand at Rs. 256.6 billion, while total expenditure from the Treasury is Rs. 329.8 billion. However, this has positive aspects as well; it will force the government to raise money from domestic borrowing, and the BFIs can mobilise their deposits.

Meanwhile, to control the revenue leakage, the MoF has mobilised a rapid mobile team at key locations, and a new Inland Revenue Mobilisation Strategy 2081 has been put into implementation. Likewise, transactions of more than 400 large taxpayers that deal with the business of more than Rs. 250 million have been connected with the Central Billing Monitoring System. Inspection and monitoring have been conducted in more than 100 industries producing energy drinks, liquors, juice, tobacco-related goods, cigarettes, and beer.

The formation of the government by the coalition led by the two largest parties in the Federal Parliament has increased the confidence of the private sector in a hope for political stability. Based on this confidence and possible increase in paddy production, the multilateral donor, the World Bank, has projected 5.1 per cent growth in the Gross Domestic Product (GDP). Although this is a bit less than the government estimates of 6 per cent economic growth announced by the budget, this is encouraging compared to the 3.9 per cent growth of the last FY 2023/24.

Similarly, DPM Paudel has initiated the work for the formulation of the second financial sector strategy and new policy for development cooperation, while new budgeting guidelines and domestic debt issuance and management procedures have been formulated and implemented, and the drafts of new insurance rules and policies related to debt and investment in public corporations are submitted to the Cabinet. The MoF has also dematerialised the citizen bond and foreign employment bond.

While the progress made in the past couple of years is at risk of being regressed by the recent disasters, the country has witnessed a surge in remittances and tourist arrivals, which has strengthened the foreign exchange reserves and improved the external sector. The future course of the economy will be guided by the government's strategy to harness the benefits from them.

 Published in The Rising Nepal daily on 22 October 2024. 

Money laundering investigation to be intensified

Kathmandu, Oct. 20

The meeting of the Steering Committee on prevention of money laundering has decided to intensify investigation and prosecution.

The meeting of the Committee held on Sunday has taken decision to intensify the matter of investigation and prosecution by the regulatory bodies related to money laundering, and to take initiatives for swift endorsement of the regulations on prevention of financial investment in money laundering and terrorist activities by the Cabinet.

The participants of the meeting maintained that Nepal will not fall into the 'gray zone' if the regulations are passed by speeding up investigation and prosecution.

According to the Financial Action Task Force (FATF), the 'grey list' means 'Jurisdictions under Increased Monitoring'. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.

Likewise, countries with serious strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation fall in the FATF 'black list'. The FATF is the inter-government global money laundering and terrorist financing watchdog that sets international standards aiming to prevent these illegal activities and the harm they cause to society.

Deputy Prime Minister and Minister of Finance, Bishnu Prasad Paudel, said the work of investigation and prosecution will be advanced as per the national needs and priorities, and instructed the relevant agencies and authorities to work in a way to prevent Nepal from falling in the gray-zone.

The issue has long been the national concern and the government has been trying to prevent the country from untoward results.

Law, Justice and Parliamentary Affairs Minister, Ajay Kumar Chaurasia, said that the Ministry is active in making necessary laws and improving the existing laws so that Nepal does not fall into the gray zone.

Attorney General, Deputy Governor of Nepal Rashtra Bank, Secretaries of Ministries, representatives of regulatory agencies and others participated in the meeting.

 Published in The Rising Nepal daily on 21 October 2024.