Students in South Asia lose future earnings due to COVID-19 school closures: WB

Kathmandu, Feb. 17

A new report by the World Bank has found that in South Asia, today’s students could lose up to 14.4 per cent of their future earnings due to COVID-19-induced education shocks.

The cognitive deficit in today’s toddlers could translate into a 25 per cent decline in earnings when these children are adults, the report, 'Collapse and Recovery: How COVID Eroded Human Capital and What to Do About It' informed.

In South Asia, between April 1, 2020 and March 31, 2022, schools were fully or partially closed for 83 per cent of the time—significantly longer than the global average of schools being closed for 52 per cent of that same period. Among the school aged children, on average, for every 30 days of school closures, students lost about 32 days of learning.

"This is because school closures and ineffective remote learning measures caused students to miss out on learning and to also forget what they had already learned. As a result, learning poverty – already 60 per cent before the pandemic — has increased further, with an estimated 78 per cent of 10-year-olds in South Asia unable to read and understand a simple written text," read the report.

According to the report, the COVID-19 pandemic derailed development and caused a massive collapse in human capital for millions of children and young people across South Asia. The report included people who were under the age of 25 at the onset of the pandemic.

"Human capital—the knowledge, skills, and health that people accumulate over their lives—is key to unlocking a child’s potential and enabling the countries to achieve a resilient recovery and strong future growth," the WB said in a statement on Thursday while maintaining that yet, the pandemic shuttered schools and places of employment and disrupted key services that protect and promote human capital, such as healthcare and job training.

The report presents the first comprehensive analysis of global data on the pandemic’s impacts on young people at key developmental stages: early childhood (0-5 years), school age (6-14 years), and youth (15-24 years).

“The pandemic shut down schools, decimated jobs, and plunged vulnerable families into crisis, pushing millions of South Asia’s children and young people off-track and depriving them of opportunities to flourish,” said Martin Raiser, World Bank Vice President for South Asia.

Across the region, significant declines were observed in cognitive and social-emotional development. In Bangladesh, for example, toddlers tested in 2022 lagged far behind toddlers assessed in 2019.

Likewise, the report said that in some countries in South Asia that were covered in the report, school enrollment has not returned to pre-pandemic levels. Across South Asia, the number of people neither employed nor enrolled in education or training has increased substantially. Moreover, in several countries that were analysed, there was little sign of recovery after 18 months.

According to the WB, in the short term, for young children, countries should support targeted campaigns for vaccinations and nutritional supplementation; increase access to pre-primary education, including social-emotional skills; and expand coverage of cash transfers for vulnerable families. For school-aged children, governments need to keep schools open and increase instructional time; assess learning and match instruction to students’ learning level; and streamline the curriculum to focus on foundational learning. For youth, support for adapted training, entrepreneurship programs, and new workforce-oriented initiatives are crucial.

In the longer term, countries need to build agile, resilient, and adaptive health, education and social protection systems that can better prepare for and respond to current and future shocks.

Published in The Rising Nepal daily on 18 February 2023. 

Chinese experts in capital to study trans-Himalayan railway feasibility

Kathmandu, Dec. 27

A day after the Chinese government said that it would pursue ‘high-quality Belt and Road Cooperation’ with Nepal and inject new impetus into the strategic cooperative partnership between the two countries, the first batch of Chinese experts has arrived in Kathmandu on Tuesday to conduct feasibility study and survey of the cross-border railway.

The northern neighbour on Monday had said that it would stand ready to work with the new Nepali government to expand and deepen friendly exchanges.

Stating that to conduct the feasibility study and survey of the China-Nepal cross-border railway had been a long-cherished dream of Nepali people and a vital consensus reached by leaders of the two countries, the Chinese Embassy in Kathmandu said that it was also an integral part of jointly building the Belt and Road Initiative between China and Nepal.

China also expressed its readiness to maintain close contact and coordination in jointly carrying out the work ahead in building the trans-Himalayan multi-dimensional connectivity network. The two countries had signed a pact on the mega initiative that would create connectivity with the entire Eurasian region during the visit of Nepal’s Foreign Minister, Dr. Narayan Khadka’s to China in August this year. Dr. Khadka and his Chinese counterpart Wang Yi had signed the agreement on behalf of their countries. However, the two countries have been discussing this project at various high level platforms and meetings.

This is probably the largest cross-border project being initiated after Nepal officially signed a framework agreement on One Belt One Road Initiative in 2017.

The delegation of Chinese experts includes six professionals. A team led by the Spokesperson of the Department of Railway (DoR), Aman Chitrakar, had received them at the Tribhuvan International Airport.

As Nepal lacks the expertise in the development of critical railway infrastructure and China has an experience in constructing railway lines in difficult Himalayan region, the northern neighbour had promised to send multiple batches of experts to Nepal. The agreement between Wang and Dr. Khadka in August had also said that a team of expert would be sent to Nepal by the end of 2022.

Nepal will support in environment assessment, land acquisition and settlement programmes to facilitate the implementation of the project.

“This project will change Nepal’s status from a landlocked to a truly land-linked nation,” said Chitrakar while terming it as a milestone project in infrastructure development in the region.

Rasuwagadhi to have two-way trade

Meanwhile, two-way trade will be conducted via the Kerung-Rasuwagadhi border from Wednesday. A ceremony is being organised at the Kerung/Rasuwagadhi border port to resume the two-way trade between China and Nepal.

The Chinese Embassy in Kathmandu informed that the Department of Commerce of Tibet Autonomous Region, the Lhasa customs district of China, the General Station of Immigration Inspection of Tibet Autonomous Region, the health commission of Tibet Autonomous Region, and other relevant departments will attend the ceremony, the Consulate General of Nepal in Lhasa is also invited.

Since the 8^th century, Kerung has been the important route of political, economic and cultural exchanges between China and Nepal. In 1961, in order to further facilitate bilateral exchanges, Kerung port was approved to open and in 1987 it was approved as China’s national first-level land port.

“In recent years, Kerung port has continuously improved its infrastructure and promoted the improvement of customs clearance efficiency, and its trade has witnessed rapid growth. Between 2015 to 2020, the total import and export trade of Kerung port reached 14.71 billion yuan,” read a statement of the embassy.

However, the border point along with Tatopani-Khasa border was shut for months and opened for one-way traffic since the outbreak of COVID-19 pandemic.

Kerung port took corresponding measures according to the pandemic prevention needs, said the embassy.

In April 2020, at the request of Nepal, the one-way freight clearance at Kerung port was reopened, which played an important role in ensuring the supply of medical treatment and live plants and animals to Nepal.

The opening of two-way trade of Kerung port will promote Nepal’s exports to China, reduce the trade deficit in Nepal, cushion the trade imbalance, and further improve the connectivity between China and Nepal, said the northern neighbour.

Immediate Past President of Nepal-China Chamber of Commerce and Industry, Rajesh Kazi Shrestha said that opening the border for two-way trade is a welcome step. “The business community hopes that the border would run in full-fledge without setting any limit or quota on goods. It will help in the promotion of Nepali goods in China as well,” he said.

He also added that China should support Nepal in the facilitation of trade and tourism and there should be direct flight services to major cities in China from Nepal.

Meanwhile, one-way freight clearance at Pulan/Yari port has been reopened since Monday, December 26.

Energy infrastructure

While the border is opened for two-way trade with China, Nepal Electricity Authority (NEA) has initiated the construction process for the 400KV Ratmate-Raswuagadhi-Kerung transmission line project. The NEA has recently concluded the detailed feasibility study of the project.

The 70-km long cross-border transmission line will facilitate energy export to China as well. Currently, Nepal is exporting electricity to India and exploring opportunities to send it up to Bangladesh. China has constructed 1600-km transmission line up to Mansarovar while Nepal is developing high-powered transmission line via Ratmate to Gorakhpur of India with the support from the Millennium Challenge Corporation. 

Published in The Rising Nepal daily on 28 December 2022. 

Facilitate trade with China

Editorial

Nepali traders and entrepreneurs are in trouble as Nepal’s two major border points with China, Rasuwagadhi-Keyrung and Tatopani-Jangmu, at the northern borders have remained shut for more than four weeks in a row. This shutdown of the trade and transit points at this time when the markets in Nepal are preparing for the upcoming great festivals is set to affect the supply of prepared goods and raw materials being imported from the northern neighbour. China has been saying that Tibet has been implementing lockdown to contain the recent spread of COVID-19 pandemic which has affected the cross-border flow of goods as well. However, international media reported that the lockdown was imposed with just one and a half dozen recorded cases which is the first contagion since January 2020. 

Despite having multiple high-level exchanges between the two countries, like the visit of Foreign Minister of Nepal, Dr. Narayan Khadka in August this year, and Chinese Foreign Minister, Wang Yi in March 2022, even during the COVID-19 pandemic and multiple promises from China, there has been zero progress in terms of bringing the two border points into operation.  FM Dr. Khadka and his Chinese counterpart Wang, during the visit of the former to China last month had decided to establish a joint mechanism for pandemic control in border ports. They also agreed to open Rasuwa-Keyrung and Tatopani-Jangmu ports for two-way trade and Hilsa-Palung port for one way trade immediately after the fresh wave of COVID-19 in Tibet Autonomous Region of China comes under control. But as the lockdown is extended and Nepali goods are stranded across the border in Chinese land. However, China has cited pandemic as a reason behind the border closure. But goods from China had been coming to Nepal but goods from here couldn’t be sent to the north. 

The bilateral trade between Nepal and China via those northern borders have remained one sided with zero exports from Nepal. Exports to China have been continuously disturbed since the COVID-19 erupted in China in December 2019. In the last fiscal year 2021/22, Nepal imported goods worth Rs. 26.62 billion from China through Rasuwagadhi and Rs. 14.02 billion from Tatopani. Thus, there is a huge trade deficit of Rs. 263.97 billion. Nepal imported goods worth Rs. 264.78 billion from China and exported goods of just Rs. 808 million. In comparison to other trade partners, Nepal fares quite poor in trade with China. The export value to India in the last fiscal is Rs. 155.22 billion, to United States is Rs. 17.99 billion, to Canada is Rs. 1.12 billion and to Australia is Rs. 1.16 billion.

Meanwhile, former Foreign Minister, Sujata Koirala, expressed concerns over the closed border and urged the government to address the problem through diplomatic dialogue with China. Since the halt of the Nepal bound container trucks in China is going to affect the upcoming festival markets, the government should immediately initiate process and dialogue with the northern neighbour to resume the cross-border movement of goods. Since Nepali market during the festival season and for winter dresses and electronic equipment largely depends on China, obstruction at the border is likely to increase the cost of the goods here. The country should try to facilitate the trade even to respect the agreement made last month between the two countries during the Dr. Khadka’s visit to China. 

Published in The Rising Nepal daily on 8 September 2022. 

Nepal Finland hold bilateral consultations

 Kathmandu, June 2

The Foreign Ministries of Nepal and Finland held the second edition of the Bilateral Consultations in Helsinki on Thursday.

Foreign Secretary, Bharat Raj Paudyal, and Permanent State Secretary of the Ministry of Foreign Affairs of Finland, Jukka Salovaara, led their respective delegations to the consultations.

According to the Embassy of Nepal in Copenhagen of Denmark, delegations exchanged views on further strengthening the Nepal-Finland friendly relations and promoting the scope of cooperation.

They underscored the importance of high-level visits and interactions at all levels, while highlighting the need of enhancing economic engagements in the days ahead, the embassy said in a statement.

The two sides agreed to give new momentum to trade, investment tourism and other productive sectors, bilaterally as well as through the EU mechanisms.

Nepal thanked Finland for its support and solidarity during the COVID-19 pandemic. Nepal also appreciated the Finnish cooperation in various sectors, which has contributed to the realisation of the Sustainable Development Goals (SDGs).

Finland assured Nepal of its continued cooperation to Nepal’s socioeconomic development, as the country prepares for post-COVID economic recovery.

"The two sides also discussed matters of regional and global importance, including climate change, connectivity and multilateralism," said the embassy.

The Finnish delegation comprised Ambassador of Finland to Nepal, Pertti Anttinen, and senior officials from the Ministry of Foreign Affairs of Finland. The Nepali delegation included Joint Secretary at the Ministry of Foreign Affairs, Nirmal Raj Kafle, Joint Secretary at the Ministry of Foreign Affairs, Chakra Bahadur Budha and Chargé d'Affaires a.i. of the Embassy of Nepal in Denmark Tirtha Raj Aryal.

Prior to the Bilateral Consultations, the Foreign Secretary called on Ville Skinnari, Minister for Development Cooperation and Foreign Trade of Finland.

He also met with Political State Secretary of Finland, Johanna Sumuvuori.

According to the embassy, on both the occasions, the two sides exchanged views on matters of mutual interests, including cooperation at the bilateral and multilateral levels and people-to-people contacts.

 Published in The Rising Nepal daily on 3 June 2022.  

Corona Insurance claims to be cleared by mid-July, IB assures all for the payment

Kathmandu, Feb. 5

Insured of Corona Insurance scheme are likely to get their claims reimbursed by mid-July this year – end of current Fiscal Year 2021/22 – approximately a year after the validity of the term-insurance expired.

The Ministry of Finance (MoF) is currently mulling over two alternatives for the payment suggested by the Insurance Board (IB). “Discussions are underway to resolve the issue of Corona Insurance. Since we need to manage a large sum of money to clear all the claims, other options are also being studied,” said Ritesh Kumar Shakya, Spokesperson of the MoF.

According to him, the ministry will make budgetary adjustment to manage resources for the Corona Insurance payment after the end of the second quarter of this fiscal, i.e. March 14.

The government makes budget transfers only after the second quarter of the running fiscal year.

According to the statistics provided by the Nepal Insurers Association (NIA), non-life insurance companies have issued about 1.758 million policies under Corona Insurance while 958,198 policies were issued under the government insurance grant.

By 31 December 2021, approximately 161,549 claims were made which need Rs. 15.32 billion to meet the demand. About Rs. 3.5 billion was paid from the insurance pool created with the contribution from 19 non-life insurance companies. The companies had collected just Rs. 1.95 billion by selling the policies, and they are yet to get Rs. 211.2 million from the government for the grant offered to the Corona Insurance.

“We have paid about Rs. 5 billion for Corona Insurance making additional Rs. 1.5 billion payment. We had made the payment with a hope that the government would provide financial support,” said Chunky Chhetry, President of NIA. The MoF had directed the companies to make the payment pledging for the reimbursement of the paid amount.

As per the Corona Insurance Rules, if the claims on the Corona Insurance exceed Rs. 3 billion, the government will bear the cost. Insurance companies have the liability of up to Rs. 1 billion. If the claims exceed Rs. 1 billion, Nepal Re should cover up to Rs. 2 billion, insurance pool up to Rs. 2.5 billion and IB up to Rs. 3 billion.

Chhetry said that the insurance companies have made enough contribution, more than what they could manage.

 

Two alternatives

Earlier in October 2021, the IB had suggested two methods for the payment. The first alternative recommends clearing the insurance claims of the government employees from the Rastriya Beema Sansthan within the period specified by the government. Sansthan is a state-owned insurance company.

Rest of the claims should be considered 100 per cent and half of it should be borne by the government. The remaining half will divided to IB, Nepal Reinsurance Company and non-life insurance companies – with 10 per cent each by the former two and 30 per cent by the latter. The 30 per cent contribution from the non-life insurance companies should be paid in a proportionate manner by all institutions.

The second alternative suggests 55 per cent contribution from the government in making the payment of claims amounting about Rs. 11.44 billion. Likewise, Nepal Re should contribute 12 per cent, insurance companies 25 per cent and IB 8 per cent.

However, Chhetry said that it would be challenging for the insurance companies to make additional contribution.

 

Loss of credibility

Insurers said that the delay in clearing the claims of the Corona Insurance had eroded credibility on the part of insurance companies while it is now a pure liability of the government.

Inability to make the payment against the insurance claims has sent a negative message to people about the insurance industry itself. Likewise, staff and agents of the insurance companies are receiving threats. “Our staff and agents outside the valley are receiving threats to clear the claims immediately,” a CEO of a non-life insurance company said.

Chhetry said that the damage was not only on the part of the companies, it was the trust issue in the government as well. “Leadership at the MoF has been changed thrice but the problem is not resolved. Clearing the remaining claims is not a big deal for the government. It's about ‘earning goodwill’ as well,” he said.

 

‘Insured will get their money’

While the IB and insurance companies are waiting for a positive step from the Finance Ministry, Executive Director of the board, Raju Raman Adhikari, assured that the insured would get their claims cleared even though it would take a while.

“All insured persons will get their insurance money. The process for it would be initiated after the ministry makes decision about the modality of contribution,” he said.

However, all stakeholders are looking up to the government for the resolution of the problem. MoF Spokesperson, Shakya said that the ministry would make a decision on the issue at the earliest. 

Published in The Rising Nepal daily on 6 February 2022.

CAN postpones Infotech fair considering COVID surge

Kathmandu, Jan. 11

The CAN Infotech 2022 is postponed due to the increasing rate of coronavirus contagion.

Issuing a press statement, the Computer Association of Nepal (CAN) Federation said on Tuesday that the 27^th edition of the largest exhibition of Information and Communication Technology (ICT) is halted until further notice.

"Preparations were at the final stage to organise the Infotech at the Bhrikutimandap Exhibition Centre from February 1 to 6. IME Pay and Smart Choice Technologies have sponsored the event but the event is postponed due to health risk posed by the pandemic," General Secretary of CAN Federation, Narayan Thapa, said.

The CAN Federation has postponed the event considering the raging expansion of COVID-19 contagion, and the decisions of the COVID-19 Crisis Management Centre (CCMC) and districts in the Kathmandu Valley.

Earlier, the organiser had announced that the exhibition would be organised in hybrid from – physically at the Bhrikutimandap as wells as online.

The expo was halted last year due to the pandemic and subsequent lockdown. It has been organised regularly since 1995. 

Published in The Rising Nepal daily on 12 January 2022.

Tourism activities with health safety suggested

Kathmandu, Jan. 9

 The Nepal Tourism Board (NTB) has held discussions with organisations and individuals concerned with the tourism sector as the transmission of the new variant Omicron of COVID-19 is on the rise.

On the occasion, private sector organisations and tourism entrepreneurs have suggested making tourism viable with adherence to health and safety protocols.

They have also urged the government not to take a sudden decision to shut the businesses and restrict the activities. They said that tourism had collapsed in the past due to the sudden shutdown announced in the wake of COVID-19 contagion.

In response, Dr. Dhananjay Regmi, Chief Executive Officer of the NTB, said that the Board was conducting various programmes in the past despite the infection of COVID-19 and limited resources. He further added that the programme was organised as the suggestions of the private sector were needed in the context of the rising new infections.

Achyut Guragai, President of Nepal Association of Tour and Travel Agents, said that there was no alternative to booster vaccine against the pandemic and make tourism viable by adhering to health standards.

Tourism entrepreneur Vijay Amatya suggested the NTB to change the market strategy considering the condition of COVID-19. Similarly, Dambar Parajuli, President of Expedition Operators Association, said that criteria should be formulated to invite tourists, however, there shouldn’t be any constraints after their arrival in Nepal. 

Published in The Rising Nepal daily on 10 January 2022.

Unified efforts needed for post-COVID revival: Golchha

Kathmandu, Dec. 28

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha, said that unified efforts were needed for the post-COVID revival of business and industry.

Welcoming the newly elected office bearers of the members of commodity associations at the FNCCI secretariat on Tuesday, he expressed confidence that the business would be revived and the private sector would contribute to the economic transformation of the country.

The business body has already formulated a policy document called 'National Economic Transformation 2030'.

"The time has come for the entire network of the federation to be mobilised for the revival of industry and business. Newly elected office bearers of the member commodity federations should be active to achieve this goal," said Golchha.

The FNCCI has honoured the members of Airlines Operators Association of Nepal (AOAN), Nepal Corrugated Box Manufacturers Association (NCBMA), Nepal Courier Services Association (NCSA), Footwear Manufacturers Association of Nepal (FMAN), NADA Automobiles Association, Nepal Agricultural Machinery Entrepreneurs Association (NAMEA), and Nepal Freight Forwarders Association (NFFA).

Speaking on the occasion, Sukrit Raj Parajuli, president of NCBMA, complained that although the country is self-reliant in packing boxes, producers are facing challenges due to imported box.

He recommended to stop the export of scrap papers – raw materials for corrugated box industry.

Chairman of NCSA, Devendra Khadka, demanded separate courier terminals at international airports and bus parks. He suggested that initiatives should be taken to solve the problem created by the traffic for courier van, and remove Value Added Tax on courier.

Naniraj Ghimire, President of FMAN, suggested establishing training centres to enhance the skills of the workers and create skilled manpower for the industries to address the shortage of skilled human resources.

He complained that there was a problem in exporting Nepali shoes due to high customs duty. He said that the government has made it mandatory to use indigenous products even though it is 15 percent expensive but the policy has not been implemented in practice.

Likewise, according to Dhruba Bahadur Thapa, President of NADA, policy of maintaining 50 per cent margin in the letter of credit (LC) has caused problems.

He suggested removing or amending impractical policies regarding customs reference price, black marketing, and annual fees and taxes.

Khoj Raj Katuwal, President of the NAMEA, suggested that the government should have a policy to promote Nepal-made products. Mulching plastics, pipes for drip irrigation and greenhouse structures made of iron and pipes are being produced and marketed in Nepal. 

Published in The Rising Nepal daily on 29 December 2021. 

Chhatrapati hospital installs oxygen plant

Kathmandu, Dec. 18

Chhatrapati Free Hospital in Kathmandu Metropolitan City Ward No. 17 has installed a 100-cylinder capacity oxygen plant.

Minister for Energy, Water Resources and Irrigation, Pampha Bhusal, inaugurated the facility on Saturday morning. The plant is supported by Daya Foundation, United Neva, an organization of Nepalis in USA, ION and more than a dozen other organizations and individuals.

The plant is installed at the cost of Rs. 14.5 million.

Minister Bhusal expressed confidence that it would further help in the fight against the coronavirus pandemic. "Nepal needs to be prepared in advance as the new variant of the virus is spreading to other parts of the world. Oxygen plant at the hospital would play an important role in saving the lives of the people," she said.

Since the hospital is located in the middle of the urban area and extending its services to poor and helpless people, the government would extend additional support to it, said the Minister.

She assured that the government would provide free electricity to the hospital.

Navin Manandhar, chairman of the ward, said that the hospital had played a significant role in the 2015 earthquake and the current COVID pandemic.

Chairman of Chhatrapati Free Hospital Dr. Manojman Shrestha informed that the new building has been managed in such a way that there is no shortage of oxygen. He expressed his commitment to be more dedicated in the service of the helpless, poor and low-income people in the days to come.

Published in The Rising Nepal daily on 19 December 2021. 

FM Sharma pledges policy facilitation to BFIs

Kathmandu, Dec. 15

Minister for Finance, Janardan Sharma, has indicated that the government was not in the mood to let the market have its say on bank interest rates.

Speaking at the conference on 'Post-COVID economic revival' organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Wednesday in the Capital, he said that if the government policies were creating challenges for the banks and financial institutions (BFIs), they should be addressed mutually by the regulator and businesses.

"There are two alternatives – to let the market have its say on the business, or have strong regulation to control the market activities," said FM Sharma adding that the Nepal Rastra Bank should intervene in case the interest rates begin to impact other businesses and economy.

However, he pledged policy facilitation to the BFIs should there emerge any problems.

Minister Sharma also said that the government will correct its policy for electricity supply.

There is a situation where electricity is being wasted but the industries are not getting it or are forced to pay higher rate to get the utility. "We will soon make reforms in this area. Our focus should be on increasing the consumption of electricity rather than exporting it," he said.

Stating that the private sector contributes 70 per cent to the economy, he maintained that the government should listen and incorporate the private sector's demands and suggestions at the same rate.

According to him, budget implementation has just started. Government is highly concerned about increasing capital expenditure. "I am hopeful that the budget mobilisation would catch speed in the next two months," he said.

Deputy Governor of the Nepal Rastra Bank, Nilam Dhungana, said that the central bank had to intervene in the market to keep the interest at the desired level.

"We are concerned about the interest of the larger population," she said.

She maintained that the NRB had utilised various tools to maintain liquidity in the market.

Low mobilisation of capital budget, decreasing remittance, foreign grant and loan and increased goods imports are the main factors contributing to the liquidity pressure, experts speaking at the programme said.

Dr. Richard Howard, Nepal Country Director of the International Labour Organization (ILO), said that social security should not be the burden for businesses and industries.

"Informal sector should be formalised and supported with financial and technical support for business revival," he said.

According to him, recovery is critical. There is no country that has witnessed voluntary business revival, there should be interventions, he said.

"A solid policy framework is needed for the business revival and support the labour force that lost job and economic opportunity, a tripartite cooperation among the FNCCI, government and ILO can help to build such framework," said Dr. Howard.

Secretary of Industry, Arjun Pokharel, informed that the government was mulling to formulate a strategy to formalise the micro, cottage and small enterprises running informally, and support them in business growth and marketing.

Shekhar Golchha, President of the FNCCI, said that the liquidity pressure had resulted in increased interest rate and lack of funds for investment.

"Businesses were trying to revive after facing the brunt of the first wave of the pandemic but the recent liquidity crisis has again created challenges for them," he said.

LDC (Least Developed Countries) graduation without better preparation at a time when the country is struggling to increase the share of exports in the international trade, is likely to have multiple challenges for the country. It will immediately impact exports and intellectual property, said Golchha.

According to him, MSMEs (Micro, Small and Medium Enterprises) are the business most affected by COVID-19 pandemic but there is no policy to address their issues.

Senior Vice President of the FNCCI, Chandra Prasad Dhakal, said that special action plan is needed for the revival of tourism and hospitality sector as it will take quite a while for the businesses in the sector to bounce back.

"Government should start treating investment – domestic and FDI – as our own investment and the entire government mechanism should be sensitised towards this. This is a proven method in Malaysia," he said.

He maintained that the domestic investors should be enabled and encouraged before inviting foreign investors because foreign investors consult the national investors before sending in the money.

Vice President of the FNCCI, Dinesh Shrestha, said that government has failed in creating awareness about the registration and facilities among the micro, cottage and small enterprises.

 Published in The Rising Nepal daily on 16 December 2021. 

 

FNCCI to hold post-COVID-19 revival conference

Kathmandu, Dec. 12

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is organising a new post-COVID revival conference on Wednesday, December 15.

The conference is being organised to discuss the impact of the global pandemic on the economy and steps required to be taken for the revival of the economy and business.

The conference will be focused on the most affected businesses like tourism and recreation, cottage, small and medium enterprises, and export as well as banking.

The main theme of the conference is 'Rapid and sustainable economic growth in a changing situation'. It aims at finding the solutions to revitalise COVID-affected economy, existing challenges and revive business.

Minister for Finance Janardan Sharma will inaugurate the day-long conference.

FM Sharma, FNCCI president Shekhar Golchha, Senior VP of FNCCI Chandra Prasad Dhakal and Nepal Country Director of the International Labour Organisation Dr. Richard Howard will address the inaugural session.

FNCCI vice presidents Anjan Shrestha, Dinesh Shrestha and Ram Chandra Shanghai, and senior vice president Dhakal will present working papers on the most affected sectors of the economy.

The first session following the inauguration will be chaired by Governor of the Nepal Rastra Bank Maha Prasad Adhikari, Secretaries of the Ministry of Industry, Commerce and Supplies, Dinesh Bhattarai and Arjun Prasad Pokharel, and Secretary of the Ministry of Culture, Tourism and Civil Aviation Maheshwor Neupane will chair the session.

Meanwhile, the concerned committees of the FNCCI have prepared a report after in-depth discussions on these issues. The FNCCI said that the report will be submitted to the National Planning Commission and the Ministry of Finance in the concluding session of the conference.

According to it, the final report will also include the suggestions made during the conference as well.

The report is prepared in the leadership of chairperson of Tourism Committee of the FNCCI Jyotsana Shrestha, chair of Cottage and Small Enterprise Committee DB Basnet, chair of Export Promotion Committee Manish Lal Pradhan, chair of Banking Committee Sahil Agrawal and chair of Film and Entertainment Forum Akash Adhikari.

Published in The Rising Nepal daily on 13 December 2021.   

Khadka stresses unity to fight climate change, COVID-19

Kathmandu, Dec. 9

Minister of Foreign Affairs Dr. Narayan Khadka said that the peril of growing inequality, the specter of climate change, and the scourge of global pandemics like COVID-19 are the major challenges hitting the democracies across the world.

Addressing the 14th Bali Democracy Forum by video link on Thursday, he stated that these three interlocked challenges cannot be addressed without nations acting in concert. Speaking at the Forum with the theme “Democracy for Humanity: Advancing Economic and Social Justice during the Pandemic”, he called for enhanced international co-operation in effectively tackling the global challenges of growing socio-economic inequality, climate change and COVID-19-like epidemics.

“We must fight climate change and pandemics together and join hands together in the fight against global inequality,” he said.

According to him, investing in people’s education and health, unleashing the creative and entrepreneurial energies of the youth, and keeping the workforce ready to adapt to technological changes are key elements in reducing inequality across and within countries. 

Dr. Khadka stressed on international cooperation and multilateralism to reduce the inequalities.

Reducing inequalities requires placing international cooperation and multilateralism at the front and center of inter-state relations, and prioritising work over wealth, planet over profits and people over power, Dr. Khadka said. 

He said that investing in people’s education and health, unleashing the creative and entrepreneurial energies of the youth, and keeping the workforce ready to adapt to technological changes were key elements in reducing inequality across and within countries. 

According to Dr. Khadka, democracy is about delivering good governance, economic justice, and human rights and freedoms. A successful democracy is the result of deep economic and social transformations, strong national unity, and inclusive institutions.

However, fragile social welfare systems, environmental degradation, corruption, and diseases and epidemics have weakened even robust democracies and hindered their ability to deliver, he said.   

Likewise, he maintained that democracies should be capable of taking on the long-term challenges of modernising societies, resolving social and economic conflicts, and above all, enhancing equality and social justice

Published in The Rising Nepal daily on 10 December 2021. 

Moderna vaccine arrives in Nepal

Kathmandu, Dec. 3

Moderna, anti-COVID vaccine, has arrived in Nepal on Friday. The vaccine can be administered to the children as well.

Surendra Chaurasiya, Chief of Supply Unit at the Department of Health Services, said that about 188,000 doses of Moderna vaccine have arrived. However, no decision is made about which group of people will receive the jab.

This American vaccine is sent to Nepal for the first time under the Covax facility.

Moderna vaccine can be stored in minus15-25 degree centigrade temperature while the Pfizer needed minus 70-80 degree.

Chaurasiya said that the vaccine can be given to children aged under 18 years. The government will make a decision about the group receiving the vaccine within a few days.

Likewise, about 1.6 million doses of Covishield vaccine arrived a few days ago under the Covax facility. 

 Published in The Rising Nepal daily on 4 December 2021. 

INGOs’ support scatters over many small projects

Kathmandu, Nov. 21

International Non-Government Organisations (INGOs) are found scattering their financial supports to numerous tiny programmes.

They have mobilised Rs. 698.3 million support as the COVID-19 relief in 14 projects in the first four months of the current Fiscal Year 2021/22, according to the statistics of the Social Welfare Council (SWC).

The average programme spending of the INGOs stands at Rs. 49.5 million. Adventist Development and Relief Agency had pledged to support just Rs. 5.6 million for a three months programme in Solukhumbu and Okhaldhunga districts.

Likewise, Child Rescue Nepal (CRN)'s six programme on COVID-19 response is of just Rs. 9 million.

As per the SWC statistics, the largest project agreement signed by an INGO in the past four months of the current fiscal is on 'Building resilience and ensuring basic needs for the most vulnerable affected by COVID-19 and monsoon disasters in Nepal', a 10-months programme of Rs. 182.6 million, supported by Mercy Corps.

Likewise, Catholic Relief Services is implementing Rs. 142 million 'COVID-19 emergency response and recovery project' in Gorkha and Palpa districts for two years.

Situation in the last quarter of the last FY 2020/21 was even worse as the INGOs mobilised Rs. 479 million in 112 COVID-19 related projects with average project cost of just Rs. 4.2 million.

In that period, INGOs have mobilised as small as Rs. 253,000 through national NGOs. AEIN Luxembourg has provided the support for psycho-social consultation to 100 women in Sindhupalchowk district.

There were dozens of project that had the budget of less than Rs. 1 million.

The SWC said that Rs. 14.62 billion support of INGOs was mobilised last year by 699 NGOs in more than 700 projects across the country. The average programme project spending was about Rs. 2 million.

Most of the programmes are related to consultation, awareness creation and social mobilisation while a small portion of it was related to infrastructure or development projects such as solar projects.

Member of the National Planning Commission Saloni Pradhan Singh, who has the responsibility of SWC as well, said that Nepal should make a strategy to mobilise the funds brought in the country by the INGOs.

"There should be some arrangements to invite such investment in need-based and priority sectors," she said. According to her, the NPC is looking into some complaints about the INGOs interventions in project implementation and SWC's exercise to ask money from the INGOs in the name of monitoring and evaluation.

However, Singh said that the INGOs were also suffered the brunt of the COVID-19 pandemic and many of them have withdrawn project and left the country.

 Published in The Rising Nepal daily on 21 November 2021. 

Three-Tier Elections Govt’s Top Priority: PM Deuba

 The government led by Prime Minister Sher Bahadur Deuba is completing its first 100 days on Wednesday. Formed after prolonged political crisis, the government has the priority to contain the COVID-19 pandemic, provide relief to the victims of floods and landslides and hold elections of federal, provincial and local governments in time. 

In this backdrop, Bishnu Subedi, Executive Chairman of Gorkhapatra Corporation, Bhimsen Thapaliya, Acting Editor-in-Chief and Modnath Dhakal, Reporter of The Rising Nepal talked to PM Deuba at PM's official residence in Baluwatar on Tuesday.

Excerpts:

Your government has completed the first 100 days in power. You were appointed Prime Minister in a special situation. How do you evaluate the performance of the government?

The government has successfully completed its honeymoon period but I don't claim it brought many results. Present government is formed by the alliance of five political parties – Nepali Congress, NCP (Maoist Centre), NCP (Unified Socialist), Janata Samajwadi Party Nepal and Rastriya Janamorcha Nepal. It took some time to get the Cabinet in full shape. I sense there are problems in some parties, which I have taken for granted. I believe we will move forward together. I do not claim that much work has been done but we have brought a lot of things on the track. For example, when this government was formed, the country was reeling under the threat of the COVID-19 pandemic. It is under control now. 

The United Kingdom has removed Nepal from the red zone. All countries have helped Nepal or promised assistance. The World Health Organization (WHO) has congratulated Nepal on its success in controlling the coronavirus. The most important thing is that this terrible epidemic has been brought under control, with the great support of everyone, including the doctors of Nepal. Now people have returned to their profession and business. We must take this as an achievement. The border to the south of Nepal is open while the air service always remained open. We have now made arrangements to test COVID-19 at the border.

Formed after six-month long political uncertainty, people have high hopes from this government. Has the government been able to meet those aspirations?
Nepal is a small country and has limited resources while the people have lots of aspirations. But this government will try to utilise the available resources to fulfil the development needs. We are planning to conduct periodic elections in time. We want to set the rule of law in line with the constitution. 

The majority for the government is garnered under my leadership by forging an alliance with other major political parties. It was formed on the basis of constitutional provisions after repeated efforts of then PM KP Sharma Oli to dissolve the Parliament. The government is formed as per the people’s will – it is formed with both the mandamus of the Supreme Court and public will.

When you took the leadership, the country was under the grip of the coronavirus, public life was chaotic and economic activities had been ground to a halt, but today the country is back to normalcy. How did it happen?

The normalcy became possible due to the cooperation of all stakeholders and public awareness. Public confidence in terms of awareness, safety and health is enhanced. However, in some areas people are not undergoing test for the COVID-19 fearing that they should stay in isolation. So more awareness should be created. 

We have talked to China, India and the USA’s Johnson and Johnson to procure additional vaccines against the COVID-19 pandemic. Many friendly countries have supported us during the difficult times. I am hopeful that by May 2022, all Nepalis would be fully vaccinated. Meanwhile, we have decided to provide food and cash relief to the patients of various chronic diseases and victims of floods and landslides.

In the meantime, there was some confusion and imbalance in Nepal's foreign relations. What initiatives are being taken to make relations with neighbours and allies more balanced and harmonious?
All foreign relations will be maintained by keeping national interest of the country at the centre. We have an open border with India and there is people-to-people exchange at the greater level so maintaining good relations with the southern neighbour is in our interest. Nepalis go to India for work and pilgrimage. 

We have more intensive public, cultural and commercial relations with it. Likewise, we enjoy good relations with China as well. Having good relations with these two neighbours is our need while it is also equally important to have cordial relations with other friendly nations. Nepal is graduating to the 'developing country' status from the Least Developed Country (LDC). We have maintained good international relations with friendly countries and international organisations.

After the formation of the government under your leadership, foreign and domestic investors and entrepreneurs also seem enthusiastic. What are the government's policies and priorities to encourage them?
The Nepali Congress believes in liberal economy. Other parties have also followed suit. The competition promoted by the liberal economy helps to make the market dynamic and benefits the consumers. Government should not involve in trade and business. It should promote and facilitate the private sector businesses and concentrate on essential sectors like education, health and food.

The erstwhile caretaker government made political appointments in absence of the parliament. Is any initiative being taken to correct or legalize them?
All constitutional appointments need not be cancelled. Political appointments are common and necessary in some areas. The government will make changes where necessary and where there had been illegal appointments. The government is analysing the situation and necessary interventions will be made.
There were attempts to politicize the MCC's development grant assistance to be provided by the US government. There is still some confusion and controversy regarding the implementation of the

MCC agreement. When will it end?
The Millennium Challenge Corporation (MCC) Nepal compact is just a development grant. Why should a country like Nepal reject such a generous support? I don't see United States' conspiracy behind the extension of this cash assistance to Nepal. It is in our interest. There are some elements in Nepal who are politicizing the MCC. 

The USA has already said that it is ready to amend the provisions that are not in favour of Nepal and the MCC wouldn't be above the national law. It will be governed by the internal laws as the loans and grants of the World Bank, International Monetary Fund and Asian Development Bank are regulated.

Is there any problem in the pace of the government due to the compulsion to take every step heeding the demands, expectations, grievances and dissatisfactions of all the partners in the alliance?
The government will now work in a full-fledged manner. Since the government is represented by the political parties having different ideologies and priorities, there will certainly be some problems but politics is about finding solutions amid challenges. We will maintain the alliance and move forward with the necessary agenda. Elections of all three levels are the responsibility and priority of the government.

There is continuous obstruction in the parliament by the opposition. What is the initiative of the government to run the House by taking the main opposition party into confidence?
I will hold dialogue with the main opposition to run the House smoothly. I will go to meet KP Sharma Oli myself to ease the tensions seen at the House. The NC believes in holding protest programmes but not in obstructing the parliament. The House must move ahead with its business and responsibilities. Political parties believing in multiparty democracy should not obstruct the House. The opposition has the opportunity to raise the issues and hold discussions about them in the House. The obstruction is doing good to none.

Do you have anything to say to the countrymen?
COVID-19, floods and landslides have troubled people’s life across the country. I will make an inspection of the flood-hit areas soon. National Disaster Risk Reduction and Management Authority will be enabled with requisite resources and expertise to mitigate disaster risks and carry out post-disaster rescue and relief activities. 

Published in The Rising Nepal daily on 20 October 2021. 

DoI gives a month to obtain approvals

Kathmandu, Oct. 20

The Department of Industry (DoI) has offered a month’s additional period for the businesses and industries to obtain various approvals required to renew and operate them.

It has informed that the businesses that could not apply for the services of the department since the implementation of the second lockdown on April 29 this year can avail the services for the month of Kartik (18 October to 16 November).

They can utilise the period to get the approval for the action plan of Foreign Direct Investment if the enterprise had already got approval for the FDI but not brought in the proposed money.

Likewise, renewal of patent, design and trademark certificates, and private firm can be done in the stipulated period.

Deadline for the operation of industry, commercial production and commencement of transaction can also be reported and application can be submitted to claim the cash subsidy on the exports made during the period. 

Published in The Rising Nepal daily on 21 October 2021. 

Industrial income up by 8%

Kathmandu, Oct. 1

In the last quarter of the Fiscal Year 2020/21, about 64.8 per cent industrial capacity in the country was utilised, concluded the ‘Industrial Status Report’ published by the Confederation of Nepalese Industries (CNI).

The first report produced after the analysis of the industrial activities in the major industrial areas in Nepal concluded that the income of industry increased by 8 per cent against the last quarter of FY 2019/20. Such income in the fourth quarter of FY 2018/19 was negative by 4.7 per cent.

The report has shown that Nepali economy is gradually coming out from the impacts of the COVID-19 pandemic. The pandemic had directly affected the utilisation of the industrial capacity.

Vice chairman of the National Planning Commission (NPC), Dr. Bishwo Nath Poudel, launched the first issue of the report at a programme on Friday.

It includes the detailed statistics on the status of manufacturing industry, and service, agriculture and energy sector.

In the fourth quarter of the last fiscal (mid-April to mid-July), agricultural sector industries paid 8.3 per cent interest on loans on an average, energy sector industries 7.4 per cent, manufacturing enterprises 7.7 per cent and service sector businesses 8.4 per cent.

Manufacturing industries have obtained loan equal to 66.1 per cent of their working capital.

About 83 per cent of the industries participated in the survey said that they were ready to make new investments. The report showed that 69.7 per cent industries are relying on generator to operate their plant. This contrasts the Nepal Electricity Authority’s information that the electricity is surplus in the country. Fossil fuel based energy has increased the production cost by 4.9 per cent, read the report.

Dr. Poudel said that the government was working on the basis of the statistics. “Governance based on the statistics is the good governance. We are trying to formulate policies based on the statistics,” he said.

According to him, the report has helped the government with the present status of the industrial sector and information about the plight of the private sector entrepreneurs and businesses.

President of CNI Vishnu Kumar Agrawal said that CNI was trying not only to present recommendations to the government but also to show the real picture of the industries.

He said that the report in future would include more information. 

  Published in The Rising Nepal daily on 2 October 2021. 

FM directs IB to prepare to pay for COVID-19 insurance

Kathmandu, Sept.29

Finance Minister Janardan Sharma has directed the Insurance Board (IB) to initiate preparations to assess the pending payment of the COVID-19 health insurance.

Expressing concerns about the issue, he has started discussions about the pending payment of the insurance.

He had summoned Chairman of the Insurance Board, Surya Prasad Silwal, and other officials of the insurance-sector regulator to discuss the resources required for making the remaining payment and a way out of the current problem.

According to insurance companies, more than Rs. 11 billion is due for the coronavirus insurance.

During the initial days of the pandemic in Nepal, the Board had created an insurance pool with the resources from the insurers, reinsurance companies and the government to support the virus-infected patients. However, the pool soon depleted as the number of patients increased exponentially and resources were used up.

Earlier, in August this year, Nepal Insurers’ Association (NIA) had postponed the COVID-19 insurance claims indefinitely. It had said that the payment was halted as the government did not release the amount.

Non-life insurance companies had sold about 1.75 million COVID-19 policies and collected Rs. 1.5 billion. They have paid claims amounting to Rs. 4.78 billion so far.

In the remaining payment, government’s share will be more than 3.5 million while the Board has to pay more than Rs. 3 billion.

COVID-19 insurance had two categories: A of Rs. 100,000 and B of Rs. 50,000. For A category, individual premium was Rs. 1000 and group or family premium was Rs. 600 each.

Likewise, for B category, individual premium was Rs. 500 and group and family premium was Rs. 300 each.

Published in The Rising Nepal daily on 30 September 2021.