Digital payments mandatory for government utilities

Kathmandu, Dec. 30

In an effort to promote cashless payment and sound fiscal governance, the government is making utility payments – internet, electricity, and water supply – online.

Finance Minister Rameshore Prasad Khanal said on Tuesday that in the past 110 days since he assumed office, the Ministry of Finance has made preparations for an Application Programming Interface (API), which has reached the final stage.

It will be launched on Wednesday by the Kathmandu Upatyaka Khanepani Limited (KUKL) and the remaining agencies will implement it by mid-January 2026.

At a high-level policy dialogue on 'fiscal reform and budget priorities for reconstruction and economic revival' organised by the Former Planners Forum Nepal (FPFN) in Lalitpur on Tuesday, he expressed confidence that electronic payments would put an end to the practice of having to carry bills and run from one office to another.

According to him, the government has made it mandatory for all payments to be conducted through electronic systems to ensure sound fiscal governance. Billions of rupees is due from the government organisations to utility agencies like the KUKL and Nepal Electricity Authority (NEA).

Likewise, Minister Khanal informed that the records of government buildings and other structures are updated so that a realistic budget could be planned for their repair and maintenance accordingly.

The Financial Comptroller General Office (FCGO) has submitted a report on the public assets management system to the Ministry of Finance (MoF).

According to him, contracts worth Rs. 992 billion are in the phase of implementation. There is no cash deficit because the government budget allocations could not be utilised to their fullest, he added.

"In coordination with the National Planning Commission (NPC), we are initiating a system of giving permits to multi-year projects. All details of such projects will also be available to the government so that year-wise allocations can be assured," said Minister Khanal. Currently, the government has around Rs. 700 billion multi-year commitment.

He also informed that there is no lack of funds for the election and economic recovery.

He said the government needs Rs. 26 billion to hold the elections-- Rs. 6.9 billion as pure election disbursement and Rs. 17 billion for term-police, while vehicles and riot-controlling equipment are being supported by friendly countries.

Vice-President of the NPC, Dr. Prakash Kumar Shrestha, said that Nepal has bureaucratic instability along with political instability.
"During my previous 13-month tenure at the NPC, I had to work with four joint-secretaries," he said.

He said that although the project bank at the NPC was created professionally, its implementation was very poor. Of the 1,300 projects, only about one or two dozen had completed the requirement of Detail Project Report, Environmental Impact Assessment and budgeting before entering into the project bank.

Chair of FPFN and former VC of the NPC Dr. Pushpa Raj Kandel, expressed concerns that while the NPC was created as an institution to advise the government, but it has become subservient to the government, even the Finance Ministry.

Economist Dr. Sanjaya Acharya said that transformative progress needs decades of preparation, planning, and resource allocation, which Nepal has been missing for many years in the past. "Even the long-term vision for 2100 prepared by the National Planning Commission in 2017 has been forgotten by the governments afterwards," he said.

He also said that the long-term development vision should also include the creation of cross-border development plans, such as the Trans-Himalayan Connectivity Network proposed by China with Nepal.

At the programme, former member of the NPC Dr. Dilli Raj Khanal presented a working paper focusing on the weaknesses in Nepal’s fiscal system and the areas that require reform.

Published in The Rising Nepal daily on 31 December 2025.

NPC to promote direct domestic investment

Kathmandu, May 25

Vice-Chairperson of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari, said that the NPC aims to promote direct domestic investment.

Speaking at a stakeholder discussion workshop on the promotion of internal employment and reintegration of returnees from foreign employment, organised by the Ministry of Labour, Employment and Social Security in Lalitpur on Sunday, he said that although institutions are willing to invest, obstacles such as lack of encouragement and the creation of hurdles have emerged.

He also added that the planning body is working closely on these matters.

Prof. Adhikari mentioned that the NPC is identifying the operational obstructions, overlaps, and issues of synergy and trade-offs in running organisations in an orderly manner. According to him, it is preparing operational procedures to remove such obstacles and has already initiated coordination and relevant work in this regard.

He also remarked that any institution that does not create employment for even two individuals should not be granted tax exemptions. He said that tax concessions should only be granted to those making large investments and creating employment.

He noted that the Commission would also provide strategic guidance on where and in what sectors investment should be made in the future. Although the unemployment rate has recently decreased, he stressed the importance of taking measures to avoid an increase in the unemployment rate in the future. According to Prof. Adhikari, the 16^th plan has set a target to bring the unemployment rate down to five percent.

He stated that at one time, the unemployment rate in neighbouring India was higher than that of Nepal, but recently, Nepal’s unemployment rate has surpassed India's. Stressing the potential for job creation in the mining, hotel and restaurant, real estate, construction, and hydropower sectors, he urged that these areas should be prioritised for investment in the coming days.

The Vice-Chair further said that by increasing investment in sectors such as agriculture, construction and small and cottage industries, individuals can be made labour-oriented, thereby accelerating the rate of employment generation. For this, the private and cooperative sectors should be encouraged, he said.

Published in The Rising Nepal daily on 26 May 2025. 

Energy, aviation and ICT infrastructure to get priority in new budget

Kathmandu, May 11

The government is giving priority to the development of reservoir-based hydro projects, aviation infrastructure, and digital advancement in the budget of the upcoming Fiscal Year 2025/26.

Presenting the ‘Principles and Priorities of the Budget of 2025/26’ at the joint session of the federal Parliament on Sunday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that the government aims to accelerate sustainable economic growth by adopting a productivity-driven development model.

“Technological innovation, entrepreneurship, and investment in emerging sectors will be encouraged, alongside promoting a self-reliant and competitive economy aligned with the vision of a prosperous Nepal,” he said.

According to him, core guiding principles of the budget will be the implementation of constitution-guaranteed fundamental rights, building a strong economy for national prosperity, coordinated development, fiscal balance and budget discipline, private sector promotion and citizen-centric services with good governance.

According to the document of principles and priorities of the upcoming budget presented at the Parliament, reservoir-based hydro projects will be prioritised to meet dry-season demand. Domestic and cross-border transmission infrastructure will be developed, while solar energy and electricity exports will be supported.

Likewise, while the promotion of religious, cultural, adventure, and eco-tourism will be prioritised, operational capacity of completed airports will be enhanced, and legal arrangements for using forests and parks for tourism will be established.

The new budget will emphasise the use of domestic raw materials, startup support, and promotion of local products. Export-oriented production, industrial infrastructure, and supply chains will be strengthened.

Similarly, the government will invest in digital infrastructure and attract private investment in ICT. E-governance services will be made simpler and more accessible while ensuring cybersecurity.

Priority to multi-sector reforms

Through the Appropriation Bill of the next year, legal, institutional, and procedural reforms will be continued to foster a business-friendly environment. Investment-related challenges, such as land ceiling issues, forest use, and tax inconsistencies, will be addressed, said DPM Paudel.

He said that strengthened collaboration among federal, provincial, and local governments, as well as between public, private, cooperative, and community sectors, will be emphasised for balanced and inclusive development.

Another principle would guide the budget in eliminating the irregularities and distortions that have been growing in the field of public finance. Capital allocations will prioritise well-prepared and high-yielding projects, while effective revenue mobilisation and responsible public debt management will be key strategies. Public debt will be used in projects of national priority that yield high returns, ensuring sustainability.

Similarly, to reform the public service delivery, priority would be given to the rapid development of the ICT sector. Public services will be integrated through the National ID and Citizen App.

DPM Paudel said economic governance will be strengthened through the legal and regulatory reforms. Nepal will prepare for its graduation from the LDC category by 2026 and achieve Sustainable Development Goals (SDGs) by 2030, based on recommendations from the Economic Reform Commission.

“Programmes will be announced to develop skilled human resources based on market demand and promote self-employment through youth-focused entrepreneurship and technology use. Returnee migrants will be encouraged to invest their skills and capital locally,” he said. DPM Paudel also reiterated the pledge to mechanise and commercialise agriculture to increase productivity and food security.

Organic farming, safe produce markets, improved irrigation, and modern input supply systems will be promoted.

 

Development of skilled HR

In the social sector, quality and practical education and health services will gain importance. The federal government will collaborate with local governments to improve school management, and federal hospitals will expand their services.

Another priority area is human capital development. Through the document presented at the Parliament, the government said that the development of an entrepreneurial and skilled workforce will be promoted to maximise the demographic dividend through programmes enhancing knowledge, skills, and productivity.

The government also plans to announce programmes to uplift disadvantaged communities, such as women, Dalits, Muslims, and minorities. Likewise, youth development, women's economic participation, protection of children and the elderly, and support for people with disabilities will be prioritised.

Taking note of growing liabilities in for social security, a financially sustainable and integrated social security system will be developed, targeting vulnerable groups. Benefits will be linked to national identification records for transparency, according to DPM Paudel.

 

Project completion in priority

Likewise, the budget of the upcoming fiscal year will give priority to completing the national pride projects and large infrastructure works with high returns. “Time-bound and cost-effective project execution will be ensured with better land acquisition and forest-use coordination,” read the document. Overlapping and prolonged small projects will be reduced, and procurement-related legal complexities will be addressed.

The government also announced the implementation of climate adaptation and mitigation programmes. The budget will promote post-disaster reconstruction, and environmentally-friendly infrastructure.

Through the document, the government also pledged to attract private capital into high-return development projects through innovative financial instruments, implement investment-friendly tax policies, and boost the morale of security forces through necessary budget allocation.

Published in The Rising Nepal daily on 12 May 2025. 

NPC suggests increasing fiscal space for government

Kathmandu, Apr. 20

The National Planning Commission (NPC) has suggested the government to bring about the policy and programmes with a focus on increasing the fiscal space by forging better inter-ministerial coordination.

"Recognising the status of poor revenue collection over the years, we decided to recommend to search space of new sources of revenue, expedite the development work and complete the projects in time, and for timely disbursement of dues to the private sector entrepreneurs," Vice-Chairman of the NPC, Prof. Dr. Shiva Raj Adhikari, while handing over the report to Deputy Prime Minister and Ministr for Finance, Bishnu Prasad Paudel.

Fiscal space is creating room in the annual budget and is important for the government as it helps in allocating resources in key programmes without weakening the country's economic stability. It enables the government to take bold steps such as rising spending or lowering taxes when needed.

The federal planning body handed over the Policy and Programmes Report prepared for the upcoming budget of Fiscal Year 2024/25 to DPM Paudel at the Ministry of Finance (MoF) on Sunday.

In the report prepared after consultation with development ministries, the NPC stressed on proper utilisation of the available and potential resources.

"Programmes that foster synergy and contribute to sustainability during implementation, while generating minimal or no trade-offs, should be prioritised in proposal and budget allocation," read the report.

It also recommended that the budget proposals and allocations should prioritise programmes and projects that support increased production, productivity, and employment generation.

According to the NPC, only those programmes and projects that will incur and can realistically utilise expenditures in the upcoming fiscal year should be proposed and allocated budget. Likewise, priority should be given to budget proposals for multi-year projects and programmes that have created liabilities in the current fiscal year and are expected to be completed by the next year.

 

Reprioritise ongoing programmes

"Ongoing programmes and projects should be reprioritised and allocated based on their nature, implementation status, project duration, incurred liabilities, and expenditure potential.  Duplicative or overlapping programmes and projects of a similar nature should be reviewed, merged, or eliminated as necessary," suggested the report of the NPC.

VC Prof. Adhikari said that in the current context, priority should be given to the maximum utilisation of existing institutional structures rather than creating new ones.

Similarly, the report observed that some officials believe the budget ceilings for certain ministries and agencies are too low, and in some cases, even regular and recurrent expenditures must be met through foreign aid, making the budget and programme proposal process challenging.

Other recommendations also include aligning budget proposals with the framework of the sixteenth periodic plan and Sustainable Development Goals, entering the qualified projects to the project banks, and striking regional balance.

"The allocation of projects and programmes must comply with the standards related to the distribution of development projects across the three levels of government," it said.

 

Focus to strengthening economy

DPM Paudel expressed his belief that the report would help in guiding the budget of the next FY 2025/26.

He stated that the budget of the next year will be focused on the creation of strong national economy backed by infrastructure and industrial development.

DPM Paudel is also for tightening the size of budget to all ministries and implementing agencies and is not in the mood to allocate funds to the projects and programmes that will not contribute to capital formation or create facility to the publics.

He said that the achievement of the set target of the economic growth couldn't be achieved but there wouldn't be a situation to be pessimistic.

"Of late, the government has been putting its efforts to address the challenges in the economy especially in the manufacturing sector. We have been working to facilitate the private sector so that more investment would be attracted and jobs would be created," he said.

According to him, the country has reached to the much-desired political stability after a prolonged instability but some reactionary forces are trying to destablise this stability.

This stability is not sought for the ruling parties or coalition but for the reforms and progress, maintained DPM Paudel. 

Published in The Rising Nepal daily on 21 April 2025.        

Government prepares plan to generate 36,326 MW power by 2040

 Kathmandu, Sept. 29

The government has prepared a new Integrated Power System Development (IPSD) plan for the country with an aim to generate 36,326.9 megawatt electricity and investment requirement of US$ 61.75 billion (NPR 8,249.80 billion) by 2040.

The new IPSD plan has estimated that the country's energy consumption will reach 62,390 GWh as per which the per capita consumption would be 1779/KWh. The country's power consumption in 2022/23 was 9,347 GWh (320.5 kWh/capita). According to it, the per capital energy consumption in Nepal from 15 years now would be increased by more than five times.

The global average of power consumption is 3,265 kWh. Given this scenario, the Plan said that although growth rate shows remarkable expansion, consumption per capita is a realistic value compared to neighbouring countries. "It is a high target but recognised as a feasible one," reads the report.

The IPSD outlined the energy development for the next one and a half decades into three phases – at the interval of five years each. Installed capacity for power generation was 2,247.7 MW in 2022 and it is estimated to reach 28,215.1 MW in 2035.

IPSD Plan 2040 (Forecasts)

Sector	2022/23	2040
Power consumption	9347 GWh	62,390 GWh
Power consumption/capita	320.5 kWh	1,779 kWh
Power demand	1986 MW	11,510 MW
Installed capacity	2247.7 MW	36,326.9 MW
Self-sufficiency rate	86.3%	185.5%
Length of transmission line	4,068 km	23,817 km
Total cost estimate	-	US$ 61,750 million

Source: IPSD Plan/MoEWRI & JICA

According to the IPSD Plan formulated by the Japan International Cooperation Agency (JICA) for the Ministry of Energy, Water Resources and Irrigation (MoEWRI), after 15 years, Nepal will have 410.7 MW installed capacity of solar energy (11 per cent), 9429.9 MW of storage-based hydroelectricity projects (26 per cent), 11,832.4 MW from run-of-the-river projects (33 per cent) and 10,930 MW from the Peaking RoR projects (30 per cent).

JICA handed over the report to MoEWRI at a programme organised in Kathmandu on Friday.

The new plan also presented a scenario of the development of about 23,817 km long transmission lines by 2040 from current 4,068 km.

JICA has prepared the IPSD Plan in three years and said that the new plan is consistent with the current development plans or studies conducted in the power sector.

It has presented 27 projects as the priority ones of which five – Tanahun, Arun III, Tila I, Tila II and Upper Marsyangdi – are in construction phase. Eight identified priority projects are in the phase of obtaining construction license, nine in survey phase, and one in survey license phase. Four (Bharbung, SR-06 Storage, Sunkoshi III and West Seti Storage) are the government projects.

Speaking at the programme, Senior Divisional Engineer of the MoEWRI, Ashish Shrestha, said that current energy development action plan has estimated that the country will need about US$ 46.5 billion by 2035.

The action plan included the activities in legal and policy reform such as the approval of Electricity Act, dam safety guidelines, inter-agency coordination and compensation measures. It also has plan to develop storage projects like Dudhkoshi, Budhi Gandaki, Nalgad, Naumure and Jagdulla, 400 kV transmission lines including Inruwa-Purniya and Dodhara-Bareli, and substation capacity to 40000 MVA. The action plan also envisions developing cross-border transmission lines for the exchange of 10,000 MW electricity with India and 5,000 MW to Bangladesh and China, rural electrification and energy audit for large consumers. 

 Published in The Rising Nepal daily on 30 September 2024.

NPC launches Rs. 189 billion 8-year nutrition plan

Kathmandu, Sept. 18

The National Planning Commission (NPC) launched the third Multi-Sector Nutrition Plan (MSNP) for eight years period from the 2023 to 2030.

The Rs. 189.45 billion project aims at ensuring availability of and people's access to qualitative nutrition service to improve the status of nutrition in human life-cycle. The MSNP-III plans to mobilise estimated Rs. 172.86 billon for the regular nutrition-related programmes implemented by the line-ministries and Rs. 16.58 billion would be spent on additional programmes.

Speaking at a programme organised to announce the new plan, Vice-Chairman of the NPC, Prof. Dr. Shiva Raj Adhikari, said that that MSNP-III focused on improving the availability, quality and accessibility of nutrition-specific and nutrition-sensitive services, while promoting positive social behaviour change. "It also aims to institutionalise a nutrition-friendly governance system across all three tiers of the government," he said.

According to Prof. Adhikari, then new plan serves as a central policy document and collaborative framework for advancing nutrition. "It offers wide opportunities for development partners, private sector, civil society, and stakeholders to work together and enhance nutrition outcomes for women, children and adolescents," he said.

The new MSNP-III is also expected to provide a clear roadmap for integrating nutrition projects and programmes by the government and development partners, minimising duplication, optimizing resources, and ensuring more effective implementation.

Prof. Adhikari also urged the development partners to increase their investment innutrition.

The immediate causes of chronic malnutrition in Nepal include poor feeding and care practices, insufficient nutrient intake, high rate of infection and teenage pregnancy.

Secretary of the NPC, Madhu Kumar Marasini, stated that an investment of Rs. 1 in the nutrition sector is expected to provide Rs. 18 in return which makes this area a priority sector of development.

Deputy Country Representative of the UNICEF to Nepal, Jee Hyun Rah, said that the UNICEF is keen to continue extending its support to realise the goals of the MSNP-III. "As we embark on the new journey for new MSNP, I would like to urge all stakeholders to put their efforts to make it a success," she said.

Bharat Kumar Bhattarai, Director of Association of District Coordination Committees of Nepal, said that the MSNP is about meeting Nepal's international commitment and national obligation to ensure health and wellbeing of citizens.

Similarly, Rajendra Pyakurel, ED of National Association of Rural Municipalities in Nepal, pledged the active participation of the local bodies in the plan and said, "The local governments are ready to implement result-oriented campaigns for physical and social development."

The first MSNP was announced in 2012/13 in collaboration with the European Union, UNICEF and other stakeholders including the civil society. It was implemented in 30 districts till 2016/17. Likewise, the second MSNP was implemented in all 753 local bodies of 77 districts from 2018/19 to 2022/23.

According to the Nepal Demographic and Health Survey 2022, nutrition situation in the country has been improved significantly in one decade. For example, anemia in girl child and women of reproductive age (6-59 years) has gone down to 34 per cent in 2022 from 43 per cent in 2011 while stunting in children below five years of age has decreased to 25 per cent from 41 per cent.

According to a report of the NPC, significant achievements were made in the use of maternal and child health care, basic water supply and sanitation facility, school enrolment and school completion rate. 

Published in The Rising Nepal daily on 19 September 2024.

Nepal, UN reach agreement on sustainable dev priorities

 Kathmandu, Jan. 18

The Government of Nepal and the United Nations in Nepal have agreed on the priorities for the coming year for the four outcomes under the UN Sustainable Development Cooperation Framework (UNSDCF) 2023-2027.

The agreement was made at the first annual meeting of the Joint Steering Committee of the Nepal UN Sustainable Development Cooperation Framework 2023-2027 jointly organised by the government and the UN in Nepal in Lalitpur on Thursday.

The four outcome areas are sustainable, resilient, and inclusive economic transformation; inclusive and transformative human development; environment sustainability, climate and disaster resilience; and governance, federalism, participation, and inclusion. 

Nepal had adopted the UNSDCF 2023-2027 in 2023.

The meeting was co-chaired by Vice Chairman of the National Planning Commission, Dr. Min Bahadur Shrestha, and UN Resident Coordinator in Nepal Hanaa Singer Hamdy.

Speaking at the meeting, the Vice Chairman stated that Nepal looks forward to graduating from the LDC status in 2026 and implementing the 16^th Plan.

"In this context, Nepal seeks scalable, transformative, and impactful support of the UN to create more employment opportunities, boost productivity, and productive capacity, promote sustainable use of natural resources, fortify the data management system for evidence-based policymaking, and enhance access to quality education and health facilities," he said.

"The Joint Steering Committee provides strategic oversight of the development and implementation of the Cooperation Framework, to ensure strong co-ownership and alignment with national priorities as outlined in the upcoming 16^th National Plan and guided by the UN 2030 Agenda for Sustainable Development," read a joint statement issued by the NPC and UN in Nepal.

Likewise, Hamdy stated that the Cooperation Framework is the centrepiece for the implementation of the UN Development System reform at the country level. It articulates how the UN is supporting the people and Government of Nepal in achieving its development goals.

The meeting was attended by government representatives and UN Country Team members. 

 Published in The Rising Nepal daily on 19 January 2024.   

Consultations to prepare SDG review report begin

 Kathmandu, Jan. 16

Nepal is gearing up for the third 'Voluntary National Review' (VNR) report on the Sustainable Development Goals (SDGs) with a plan to complete it by the end of the current Fiscal Year 2023/24 (mid-July 2024) and present it at the meeting of the High-Level Political Forum (HLPF) of the United Nations.

Earlier, Nepal had conducted the review of the Agenda 2030 in 2017 and 2020. The SDGs are in implementation since 2015 with a deadline of 2030 to achieve 17 goals and 248 indicators in social, economic and development sectors.

To prepare the new VNR report, the National Planning Commission (NPC) has begun consultations with the stakeholders and experts. It held a review workshop in Kathmandu on Tuesday to solicit suggestions on the progress and status of the SDGs implementation as well as the future course that the country should adopt for the effective execution of the goals.

Speaking at the workshop, Vice-Chairman of the NPC, Dr. Minn Bahadur Shrestha, said that the workshop was organised to review the work and results of Nepal in achieving sustainable development goals, good practices of other countries, coordination and cooperation with various agencies and stakeholders, and to receive suggestions.

According to a statement issued by the NPC, Dr. Shrestha said that Nepal is fully committed to achieving the sustainable development goals and all the three levels of the government: federal, provincial and local, are playing an effective role to achieve the set goals.

"SDGs have been localised. The periodical plan, medium-term expenditure structure and annual policy and programmes and budget have covered issues related to the SDGs with priority. Monitoring and evaluation of plans and programmes related to the achievement of those goals has been done in an effective manner," he said.

The upcoming 16^th Periodic Plan, which is being prepared and come into effect from the next FY 2024/25, is also being drafted along with an action plan with the goal of facilitating the country in upgrading from the Least Developed Country (LDC) and achieving SDGs by the year 2030. The Sustainable Development Implementation and Monitoring Committee under the coordination of the Vice-Chairman of the NPC is working to prepare the third VNR on sustainable development.

The NPC's Financial Management Division is working as a secretariat for the VNR.

Likewise, speaking at the workshop, Hanna Singer-Hamdy, UN Resident Coordinator in Nepal, appreciated Nepal's performance in achieving the SDGs, and said that efforts should be made for more progressive results.

"Nepal's progress in achieving the SDGs is commendable and is better compared to some other countries around the globe. However, in order to achieve the goals within the specified time, it is necessary to make more efforts together with all parties and sectors," she said.

According to her, Nepal should be more responsible for the SDGs and upgrading to the 'developing country' status since it is the current chair of the groups of LDCs.

Nepal has prepared and implemented the 'Sustainable Development Goals for Nepal 2016-30 Roadmap' following the announcement of the SDGs in 2015 by the UN. The country has reviewed the achievement of the SDGs in 2022 and determined the current situation and future roadmap for the goals.

The country has also developed SDGs Needs Assessment, Costing and Financing Strategy, and SDGs Localization Guidelines that spell out baselines, targets and implementation and financing strategies for each SDG.

According to the NPC, Nepal has so far achieved about 43 per cent progress in achieving sustainable development goals in the seven and half years since the SDGs were put into implementation.

The 2020 VNR of Nepal has maintained that the SDGs have been well-integrated into Nepal’s national development frameworks. It stated that the assessment of the SDGs implementation over the last four years (2015-2019) exhibits some encouraging results.

The workshop was attended by representatives of all relevant ministries, Nepal Rastra Bank, Policy and Planning Commission of all provinces, National Association of Rural Municipalities of Nepal, Municipality Association of Nepal, private sector bodies, governmental and non-governmental organisations, cooperative sector, and other concerned bodies.

According to the UN, the VNRs aim to facilitate the sharing of experiences, including successes challenges and lesson learned, with a view to accelerating the implementation of the 2030 Agenda. They also seek to strengthen policies and institutions of governments and mobilise multi-stakeholder support and partnerships for the implementation of the SDGs. 

 Published in The Rising Nepal daily on 17 January 2024.   

Healthy growth of banking sector required for growth of other sectors

 Kathmandu, Dec. 29

Vice-Chairman of the National Planning Commission (NPC) Dr. Min Bahadur Shrestha has said that a strong banking industry can contribute to the development and growth of the other business sectors.

Speaking at the third annual general meeting of the Confederation of Banks and Financial Institutions of Nepal (CBFIN) in Kathmandu on Friday, he said, "The government is aware of this fact and is paying attention to the healthy growth of the banking sector."

"So far, about Rs. 6 trillion deposits are in the banking sector, and about Rs. 5 trillion is being invested. That investment could not increase production and employment as expected," said Dr. Shrestha, "If this sector contributes to the increment of production and employment, it will also be the first beneficiary of that development."

According to him, among the various sectors of the country, the banking and financial sector is the sector running with international standards.

Dr. Shrestha said that the production in the country decreased and the ever-increasing imports have aggravated the challenges in the economy. "There is a situation that when we try to resolve the problem in one sector, a problem props up in another sector."

Member of the NPC Dr. Ramesh Chandra Paudel said that unless the manufacturing sector was freed from financial problems, production and productivity would not increase and the youth would not get employment. For that, he said, an environment should be created in which up to 20 per cent of the loan amount could be invested in the manufacturing sector.

He said that the interest rates on loans given to the manufacturing sector should be less than that of the service sector.

President of CBFIN Pawan Kumar Golyan urged the NPC to give priority to the financial sector and the private sector in the 16^th Plan that would be implemented for the next five years from the Fiscal Year 2024/25. He said that banks and financial institutions are ready to contribute to fulfilling the quantitative targets taken by the NPC.

He also urged the Commission to take the bank and financial sector together in the upliftment and growth of the industry, energy and service sectors along with the agricultural sector to lead the country on the path of development.

Golyan suggested increasing the capital expenditure to improve the overall economy. The CBFIN suggested that the policy arrangements for using domestic products should be implemented compulsorily, preferential interest rates should be maintained for productive, exporting and employment sectors, innovation, development of self-entrepreneurship and improvement and upgrading of domestic, small and medium entrepreneurs and industries should be prioritised.

Addressing the programme, Rajendra Malla, President of the Nepal Chamber of Commerce, said that the economic indicators have turned negative from all sides and single-digit interest rates should be maintained to keep the economy running.

He said that the economy will not be accelerated as long as there is a double-digit interest rate. "The government's economic policy should match the five-year plan. Without that, the economic sector will not be viable," said Malla.

Likewise, Vice-President of the Confederation of Nepalese Industries (CNI) Amit More said that the rule of law should be established in the country, and the arrears would be paid when evidence was found in the dispute with the Nepal Electricity Authority regarding the payments of the dues for dedicated electricity supplied several years ago.

 Published in The Rising Nepal daily on 29 December 2023.  

Next 5-year plan will be pragmatic, says NPC

 Kathmandu, Dec. 21

The National Planning Commission (NPC) has said that the next five-year plan will be made more pragmatic to realise the concept of 'building a prosperous country with proper planning and decision'.

Speaking at a press conference organised at the NPC on Thursday to inform about the progress regarding the formulation of the upcoming 16^th National Plan (Fiscal Year 2081/82 to FY 2085/86), Vice-Chairman of the NPC, Dr. Min Bahadur Shrestha claimed to make the next five-year plan result-oriented and reality-based, and advance the all-round development of the country in a planned manner.

Stating that the COVID-19 pandemic and the Russia-Ukraine war have affected the achievement of the goals of the 15^th five-year plan, he said the weaknesses in planning and executions would be addressed by the upcoming 16^th plan.

According to him, the NPC is continuing various consultations and studies to prepare a five-year plan which will be continued till mid-February 2024.

"As the country will be upgraded to a developing nation from the Least developed country within the period of the 16^th plan, the NPC is making preparations to address the challenges of the upgrading. We need to make the transition to the developing country a smooth one, and for it we have been putting in our efforts," said Dr. Shrestha.

He also claimed that the new plan will include a strategy to prevent youth migration by connecting and promoting employment and production in the country. "We will get a great opportunity to bring in foreign investment when we are upgraded to the status of a developing country. We are developing a strategy to embrace such opportunities and face the challenges," he said.

The NPC informed that it has created a procedure to change the traditional thinking and methods seen in the budgeting process. A member of the NPC, Dr. Ram Kumar Phuyal, said that an action plan has been prepared to accept the amendments and modifications of the sovereign parliament in the government's policies programmes and budget.

According to him, preparations are being made to submit the action plan to the Cabinet.

The committee formed under the coordination of Dr. Phuyal has already prepared a report. It has recommended that the government's policies and programmes, principles and priorities of the budget and economic surveys should be submitted to the parliament earlier than the current time arrangement. 

Published in The Rising Nepal daily on 22 December 2023. 

Karnali CM complains about lack of support from federal govt

Kathmandu, Dec. 13

Chief Minister of the Karnali Province, Raj Kumar Sharma, has complained about the lack of support from the federal government for development initiatives in the province.

Speaking at an interaction programme organised by the National Planning Commission (NPC) at Birendranagar in Surkhet on Wednesday to solicit suggestions on the draft of the 16^th Plan, Chief Minister Sharma said that the province wanted to move onto the path of rapid development but there were not enough supports from the federal government, according to a statement issued by the NPC.

Vice-Chairperson of the NPC, Dr. Min Bahadur Shrestha is leading a team that includes Member Secretary, Dr. Toya Narayan Gyawali and Joint Secretary Mahesh Bhattarai to obtain suggestions from the federal and local stakeholders in Karnali to make the national plan more inclusive and effective.

Chief Minister Sharma said that it was the dream of the provincial government to make its own plans and achieve rapid development. However, our dream could not be realised due to the lack of support from the federal government, he stated.

Karnali province is lagging behind in social and economic development including infrastructure compared to other provinces. 

"There are no domestic flight services within the Karnali province while the condition of the road network is also very poor. We are not backward, we are just being left behind," Chief Minister Sharma said, "We should get compensation."

VC Dr. Shrestha said that less developed regions should catch up with the more developed regions. Stressing the need for rapid development of Karnali province, he said that the upcoming periodic plan will be objective and realistic, and for that, the NPC has collected from all areas including provinces.

Yogendra Bahadur Shahi, Vice-Chairman of Karnali Province Planning Commission, said that due to the non-cooperation of the federal government, there was a problem in progressing some projects.

He also complained that the rescue and relief works in the aftermath of the November 3 earthquake in Karnali were done without the participation of the Provincial Planning Commission.

However, the federal system has created a path for inclusive and demand-based development in the province so the 16^th plan should strengthen federalism, said Shahi.

The interaction was attended by all the ministers of the provincial government, vice-chairmen and members of the provincial planning commission, heads and deputy heads of the district coordination committees, private sector, political parties as well as experts from the academia. 

Published in The Rising Nepal daily on 14 December 2023. 

Lumbini govt plans to build intl birthing centre

Investment Board clueless about the project

 

Kathmandu, Nov. 28

The provincial government in Lumbini has said that it will implement International Birthing Centre project in Lumbini, the birthplace of Lord Buddha and a world heritage site.

The facility is being developed targeting people who want to give birth to their babies at Lumbini, where Lord Buddha – proponent of Buddhism – was born. According to Lumbini Development Trust (LDT), tourists and people from various countries had expressed their wish to give birth to their babies in Lumbini.

Many people, mostly Buddhists from across the world, have expressed their desire to give birth to their babies in Lumbini wishing that they would be born with some of the qualities of Lord Buddha.

Santosh Kumar Pandeya, Minister for Internal Affairs of Lumbini Province, said that the provincial government had given high priority to the project and sought support from the federal government and the National Planning Commission (NPC).

"This is the provincial pride project which can transform the development and economy of Lumbini by attracting tourists as well as expecting mothers from all around the world who wish to give birth to their children in this sacred land," he had said while speaking at an interaction programme organised by the NPC in Lumbini earlier this month.

The provincial government of Lumbini had announced to implement the IBC project in Lumbini through its budget of the Fiscal Year 2021/22.

However, the concept of the Birthing Centre in Lumbini was in the talks since 2015 after the Public Health Ministry of Thailand showed its interest in establishing such a facility. In response to the Thai government's intent, then local bodies – Masina and Ekala village development committees – had initiated a process to find land to build the hospital. Currently, Masina is in Lumbini Cultural Municipality-18 and Ekala in Ward 10.

Initially, seven bigahas of land in Masina and eight  bigahas in Ekala was proposed to be provided to the hospital while the locals had also expressed their readiness to provide additional private land if needed.

The project that is proposed by the Lumbini government will be a 30-bed maternity hospital which is likely to be operated by the provincial government with the support from the LDT, said Dhundi Raj Bhattarai, Treasurer of the Trust.

According to him, the modality of operation is yet to be finalised. "The provincial government is ready to welcome foreign investment or other support to develop the project. Countries like Thailand, Sri Lanka, Japan, Korea could be potential source for the support," said Bhattarai.

 

IBN completes pre-feasibility

But the provincial government is implementing the project without consulting the Investment Board of Nepal (IBN) which has recently completed the pre-feasibility study of a similar project – Gautam Buddha International Maternity Hospital Project.

"The facility will be a 200-bed state of art health care facility that offers affordable, holistic and patient-centric healthcare promoting medical tourism specifically through maternity and related services by capturing the essences of giving birth at the pious birth place of Gautam Buddha," reads the project document published by the IBN.

The hospital will be developed in about 10 acres of land at Tarkulaha in Lumbini Sanskritik Municipality of Rupandehi district. It will have features like obstetrics and gynaecology, paediatric, IVF (Invitro Fertilisation), cardiology, neurology, pulmonology, orthopedics, urology, pathology, renal sciences, physiotherapy, nutrition and dietetics, and emergency and trauma centre.

There will be antenatal and neonatal care unit, Mayadevi wellness and meditation centre, supporting medical infrastructure and services, guest house and apartment.

The total cost of the hospital project which will be developed in the Public-Private Partnership modality is estimated at US$ 39 million (NPR 5.1 billion). It will be constructed in five years.

 

Missing coordination

Joint Secreatry of the IBN, Amrit Lamsal, said that there was no communication between the Lumbini provincial government and the IBN. The IBN had begun  to work on the project recently and concluded the pre-feasibility study just a couple of months ago.

However, the provincial government has not presented the operational modality of the hospital. The Ministry of Internal Affairs, Ministry of Finance and Ministry of Health and Population of the province couldn't provide the details of the project.

Meanwhile, federal Minister for Culture, Tourism and Civil Aviation, Sudan Kirati, urged the Buddhists from across the world to support in establishing 'Mayadevi Maternity Home' in Lumbini.

Speaking with the local stakeholders in Lumbini on Tuesday, he said that the hospital would be a tribute to Mayadevi who died while giving birth to Lord Buddha. 

Published in The Rising Nepal on 29 November 2023.

Poor coordination among three levels of government affecting development

Lumbini, Nov. 10

The relations among the federal, provincial and local governments have not been functional as envisioned by the Constitution of Nepal even eight years after the implementation of federalism, said the representatives of the provincial and local governments of Lumbini Province.

Speaking at an interaction programme on the draft of the upcoming 16^th Plan 2024/25-2028/29 organised by the National Planning Commission (NPC) in Lumbini on November 9 and 10, they said that the coordination among the three levels of the government have been poor and it has had detrimental impacts on their development policies and programmes.

While provincial and local governments are facing a shortage of resources and expertise in creating plans and development projects and executing them for the past six years since their establishment, the federal government has largely been apathetic to these concerns.

 "We are not getting support from the federal government in the technical issues like formulating the periodic plan and creating the Mid-Term Expenditure Framework (MTEF)," said Bishnu Kumar Giri, President of the National Association of Rural Municipalities in Nepal (NARMIN)'s Lumbini Provincial Committee, and Chairperson of Gaumukhi Rural Municipality of Pyuthan district.

The provinces and local levels expressed ire against the change in policy and programmes along with the change in the government which was creating confusion among the implementing agencies, and sub-national governments were more affected by such practices.

However, Santosh Kumar Pandeya, Minister for Home Affairs of Lumbini Province, said that the sub-national governments should be stronger to make their plans happen. "There is a lacking on our part as well. We all are waiting for someone to come to us and implement miraculous development programmes," he said.

Meanwhile, most of the local body chiefs have a feeling that the federal and provincial governments failed to understand the needs of the local governments. For example, Lumbini Sanskritik Municipality has long been urging them to support it in waste management project but there has been no response, said Sajaruddin Khan, Mayor of Lumbini.

Local governments also have a feeling that there is no coordinating body to make strong workable partnerships among the three levels of the government. According to many representatives, the NPC can function as that connection agency and provide technical support in devising local plans and budgetary activities.

Dr. Nahakul KC, Vice-Chairman of the Provincial Planning Commission of Lumbini, said that communication and interaction among the various levels of the government had become weak. It is important how the governments at various levels cooperate to include the issues of development that will benefit the grassroots level, he said.

The provinces also discriminate while allocating budget to the local levels, and the local bodies that are led by the leaders of the political parties other than the ones in the ruling do not get enough budget.

"It is ironical that the local governments that have a critical role in making any plan a success are seldom consulted and their capacity is enhanced in this regard. Federal and provincial governments should ensure that the benefits are leveraged to the local levels," said Chakrapani Aryal, Joint-Coordinator of Municipalities Association of Nepal (MuAN) of Lumbini Province, and Mayor of Banganga Municipality of Kapilvastu district.

Tika Ram Khadka, Deputy Mayor of Tulsipur Sub-Metropolitan City in Dang, voiced the same concerns. He said that poor implementation of policies and programmes had plagued national and local development.

According to him, until and unless fiscal federalism is promoted to the fullest, problems that exist at the local and provincial levels will not be resolved fully. Local government's suggestions on policies and planning are not taken seriously by the provincial and federal government, he said.

Samjhana Chaudhary, Deputy Mayor of Ramgram Municipality of Nawalparasi West, said that most of the plans and programmes have been the victim of poor or no implementation, and requested all the governments and agencies like the NPC to make the execution part more effective.

Mahesh Bhattarai, Joint Secretary at the NPC, said that the new national plan has to address the key challenges in the economy, meet the development aspiration of people and promote good governance by minimising corruption. Local bodies should also work to create their own project bank and implement them according to the local needs and priority, he suggested.

Dr. Ramesh Chandra Poudel, Member of the NPC, requested the sub-national governments to point out important plans or projects that have the potential to transform economic development of the province and local level but have long been missed from the national plans.

Expansion of informal economic activities has adversely impacted the revenue collection of all governments, so all of them should devise effective plans to formalise all business and activities he said.

The NPC is organising country-wide discussions, except Karnali Province due to the recent earthquake, with the stakeholders including the provincial and local governments, private sector, civil society to solicit input for the upcoming 16^th Plan.

The planning body has conducted discussions with the provincial ministries, planning commissions, district coordination committees, local governments, private sector organisations, civil society, media and political parties in Lumbini Province.

 Published in The Rising Nepal on 11 November 2023.

CNI underscores industrial development, employment creation in 16th plan

Kathmandu, Sept. 10

Confederation of Nepalese Industries (CNI) has suggested the National Planning Commission (NPC) to formulate the 16^th periodic plan by according priority to domestic production, import substitution and employment creation.

It submitted a concept paper with its suggestions to the NPC on the upcoming plan on Sunday.

Submitting the document to Vice-President of the NPC, Dr. Min Bahadur Shrestha, Rajesh Kumar Agarwal, President of the CNI, emphasised that the 16^th plan should focus on industrial development.

He said that an integrated industrial development strategy should be made to focus on industrial development, and there should be no land ceiling for industries. "Likewise, there should be policy stability and predictability, while 'Make in Nepal-Swedeshi Campaign' should be promoted to give priority to domestic production," said Agrawal.

Similarly, the CNI suggested that projects should not be contracted out on the basis of low-bidding to ensure high-quality infrastructure development, illegal transactions in border areas should be controlled, double tax exemption agreements should be made with various countries to promote Nepal's exports, and employment-related skill development should be given high priority.

While accepting the suggestion of the CNI, VC Dr. Shrestha, said that the 16^th plan is intended to focus on production, productivity and employment.

"The future plan will be focused on these factors as it is possible to replace imports and increase exports only by increasing production. Effective participation of the private sector is also sought when making policies and plans, so the suggestions given by the CNI will be important in formulating the new plan," said Dr. Shrestha.

The CNI has submitted a detailed proposal of 49 pages in 14 chapters to the NPC in the format requested by the planning body.

Published in The Rising Nepal daily on 11 September 2023. 

16th periodic plan should create business-friendly environment: NCC

Kathmandu, Aug. 17

Nepal Chamber of Commerce (NCC) has suggested the National Planning Commission (NPC) to formulate the upcoming 16^th periodic plan of the country in a way that creates an environment for investment and doing business.

In an interaction on 'the upcoming five-year plan and Nepal's graduation to the developing country status' with the Vice-Chairman of the NPC, Dr. Min Bahadur Shrestha, at its secretariat in the capital on Thursday, the businesspersons urged the planning body to create an environment for maximum utilisation and export of natural and other resources available in the country.

Drawing the attention of the NPC on making the sixteenth plan objective and result-oriented, the NCC said that the periodic plan should have clear provisions that would facilitate the business and industries.  

President of the NCC, Rajendra Malla, said that since Nepal is set to upgrade to a 'developing country' status from the Least Developed Country (LDC) in 2026, the country should devise development as well as business and trade strategy considering this event so that investors and producers could maintain their productivity and competitiveness in the post-graduation scenario.

The graduation could result in the loss of some favourable treatment given to Nepali products by some developed countries like the United States, and the European Union.

Meanwhile, the Ministry of Industry, Commerce and Supplies (MoICS) is putting its efforts to ensure that Nepal wouldn't lose the favoured treatment in the EU and USA and in dialogue with the authorities there. Nepal wants to continue with the USA's Nepal-specific trade preference programme implemented in the aftermath of the devastating 2015 Gorkha earthquake. This provision will expire in 2025, but Nepal is lobbying to keep it for longer than that.

Likewise, the MoICS is in dialogue with the EU authorities to meet the criteria of the GSP Plus so that Nepal wouldn't lose the favoured treatment after it graduates to a 'developing nation'.

Malla said that some of the goals mentioned in the fifteenth plan have not been fulfilled due to the lack of coordination between the NPC and Ministry of Finance.

"The 15^th plan has set the growth projections of 10.3 per cent for the last year of the current periodic plan, Fiscal Year 2023/24, but the government, through the budget of the current year, has set the growth target of six per cent," he said.

Many ambitious projects such as construction of metro rail in major cities and industrial zones in 18 locations across the country were included in the 15^th plan, but could not be implemented.

According to Malla, the 16^th plan should cover the construction of strategic roads that connect the large markets in India and China while railways should also be given priority. Likewise, priority should be accorded to hydropower, agriculture, tourism, and information technology sectors.

The businesspersons have also suggested the NPC include the development and implementation of the national payment gateway in the upcoming plan. The gateway is in talks for the past many years, but there has been no progress so far. They also urged to give priority to the utilisation and export of the natural resources like forest products, precious stones and herbs.

Addressing the programme, VC Dr. Shrestha said that the new plan will focus on economic prosperity including social justice and good governance.

"Work is being done to formulate a plan by objectively studying the infrastructure of agriculture, education, health, tourism, information technology and other sectors. The NPC is making strategic preparations regarding the situation that will arise after Nepal is upgraded from the LDC," he said.

Although the graduation will have some effect on the trade concessions being received from European countries, the NPC and government are making preparations for the same, he maintained.

Increasing the export of Nepali goods and services and attracting the foreign direct investment through the expansion of industrial sector will be the priority of the upcoming plan, said Dr. Shrestha. 

 Published in The Rising Nepal daily on 17 August 2023.   

Achievements made in SDGs not encouraging: NPC

Kathmandu, Aug. 16

The National Planning Commission (NPC) has said that Nepal needs to accelerate the process and progress to achieve the Sustainable Development Goals (SDGs) as the current achievement is not encouraging.

"Current progress will allow us to have around 60 per cent of the overall SDGs, according to the rough estimates," the NPC officials said at the 'SDG Acceleration Visioning Workshop' jointly organised by the planning body and the United Nations in Nepal.

So far, Nepal has updated the evaluations of 151 of 301 total SDG indicators.

Nepal's estimated growth for FY 2023-24 is 2.16 per cent; and unmet revenue targets pose challenges to financing development, including the SDGs, which are crucial considering the funding implications of LDC graduation.

However, a joint statement issued by the two agencies said that Nepal has fared better compared to the global average of only 12 per cent by the halfway of the adoption of the SDGs in 2015.

"There are encouraging signs. Even amid the COVID-19 pandemic, the country met the criteria for the third time for graduation from the LDC status and is set to graduate by 2026. Poverty and maternal mortality ratios have declined significantly," read the statement.

Meanwhile, Nepal has made significant progress on birth registration and certification, school enrolment and completion, life expectancy, and women’s political representation.

Despite such progress, the country still faces the challenges induced by the impacts of COVID-19, the economic impacts of the Ukraine war, and geopolitical dynamics, read the statement.

The workshop was organised ahead of the SDG Summit in September this year and reviewed the status of the SDG progress in Nepal and identified priority areas for SDG acceleration and outline a roadmap for strategic actions.

It also decided to launch a nationwide campaign on SDGs to mobilise multi-stakeholders, including provincial and local governments, the private sector, civil society, and development partners to ramp up efforts to accelerate progress on SDGs.

“The Government of Nepal is passionately internalising the SDGs through the current 15^th plan and its regular programmes and policies. Nepal has identified key areas that hold the potential to catalyse economic transformation, leading us towards SDG attainment and irreversible graduation from the LDC status," said Dr. Min Bahadur Shrestha, Vice Chairman of the NPC.

According to him, the focus of the NPC is on enhancing production and productivity within the economy, generating skilled human capital, and creating inclusive employment opportunities including a robust emphasis on quality education, accessible healthcare systems, sound infrastructure, responsible urbanisation, social empowerment, inclusivity, social security, increased capital expenditure, biodiversity preservation, and effective governance.

A statement issued by the organisers of the event stated that for the first time in decades, development progress is reversing under the combined impacts of climate disasters, geopolitical tension, global economic slowdown, and lingering COVID-19 effects globally.

Achieving just 12 per cent global progress at halftime towards the deadline of 2030 means that people and the planet are in deep crisis, and hence, a renewed commitment to the SDGs is more needed now than ever before.

Secretary of the NPC, Dr. Toya Narayan Gyawali, said that Nepal needed a robust monitoring and evaluation system to measure the progress made in meeting the SDGs.

According to him, Nepal has a challenge to meet the resource gap to implement the SDGs.

Nepal also faces the challenges like scarce domestic challenges, poor database, lack of localisation of SDGs, poor partnership and coordination among stakeholders, and poor capacity of the key agencies.

Speaking at the workshop, UN Resident Coordinator in Nepal, Hanaa Singer Hamdy said that the SDG progress was not about lines on a graph but about healthy mothers and babies; children learning the skills to fulfil their potential; and parents who could feed their families. 

"It is about a world in which everyone enjoys human rights and human dignity. The road ahead to achieve the SDGs globally and in Nepal is still a bit steep. But it is one we can, must and will achieve- together – and for the people we serve from all parts of this country," she said

The National Vision for SDG Acceleration that will be prepared through a consultative process based on the outline coming from this workshop will be presented to the global leaders as Nepal's commitment at the 2023 SDG Summit being held at the United Nations Headquarters in New York on September18-19.

The summit will reaffirm the collective commitments of the world leaders to the Goals and the promise to leave no one behind. This Summit is a defining moment to urgently put the world back on track to achieving the SDGs.

 Published in The Rising Nepal daily on 17 August 2023.