FM wants greater cooperation with ADB

Kathmandu, Feb. 18

Finance Minister Janardan Sharma ‘Prabhakar’ said on Friday that Nepal should enhance cooperation with the Asian Development Bank (ADB) to increase the international market of Nepali goods.

In a virtual discussion with Dr. Wan Farisan bin Wan Sulaiman, Executive Director of the ADB who represents Nepal, Malaysia, Singapore, Thailand and Brunei, FM Sharma suggested for greater cooperation with the ADB to promote Nepal’s foreign trade.

“Nepal is exporting a small amount of goods. The ADB can help us enhance the size of export,” he said, according to a statement issued by his secretariat. 

The Finance Minister said that Nepal should improve its economic and trade indices. “For that, we need to create investment-friendly environment in the country and promote the private sector to establish and expand business and investment,” he stated.

Expressing gratitude to the ADB for its support to control the COVID-19 pandemic and implement reforms in the Nepali economy, he said that Nepal needs more support for the post-pandemic economic revival.

Meanwhile, FM Sharma has urged the newly appointed chairman Ramesh Kumar Hamal to work independently without succumbing to the interest of any power.

Administering the oath of office to the latter, he said, “There are many tasks to do to implement reforms in the capital market. I am hopeful that you will function independently to make them happen,” he said. 

 Published in The Rising Nepal daily on 19 February 2022. 

Consumers expect price rise by 10%

Kathmandu, Feb. 18

A latest survey conducted by the Nepal Rastra Bank (NRB) has shown that the common people have high expectation of double-digit inflation over the year.

According to the Inflation Expectations Survey conducted by the Economic Research Department of the NRB from January 5 to 11 this year among individual respondents from 17 market areas of 14 cities across the country, median inflation expectations for one year ahead and current perception is 10 per cent.

However, the inflation for the next three months is 8 per cent. Households expected inflation to decrease in the near term and remain at current level in the medium term, read the report.

The results are based on field interviews of 720 urban individuals.

About 92 per cent of respondents have expected price level to increase in next three months. Likewise, 97 per cent of respondents have expected price level to increase over the next one year. The share of respondents expecting higher inflation has slightly increased from October 2020, read the report. 

 Published in The Rising Nepal daily on 19 February 2022. 

President grants amnesty to 12 inmates

Kathmandu, Feb. 18

President Bidya Devi Bhandari has granted amnesty to 12 individuals who were serving jail terms as per the court verdicts.

In a statement issued Friday, the President’s Office said that she approved the amnesty proposal of 12 inmates, including Ang Nima Sherpa, as recommended by the Council of Ministers.

The move is made as per the Article 276 of the Constitution and Article 159 of Criminal Procedure Code, read the statement.

 Published in The Rising Nepal daily on 19 February 2022. 

Refinance and bank rate reach 7 %

Kathmandu, Feb. 17

The Nepal Rastra Bank (NRB) has made significant adjustments in the rates of Standing Liquidity Facility (SLF), repo and deposit collection.

It has increased the bank rate – the interest rate charged by the central bank to domestic banks while lending money – from existing 5 per cent to 7 per cent.

In the mid-term review of the Monetary Policy for the Fiscal Year 2021/22 launched on Thursday, the central bank announced an increase of 2 per cent in the bank rate as a sign for the direction of the policy.

Likewise, it adjusted the SLF rate to 7 per cent, policy repo rate as the policy rate to 5.5 per cent, and deposit collection rate to 4 per cent. SLF is a monetary instrument to provide liquidity facility to the banks.

In the monetary policy, the NRB had set the SLF as the upper bound of the interest rate corridor at 5 per cent. Likewise, it had fixed repo rate at 3.5 per cent and deposit collection rate at 2 per cent.

However, the current Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) have remained unchanged.

Through the review of the Monetary Policy, the central bank also hiked the interest rates of the refinance, which is extended on the collateral of good loan, to 7 per cent for the banks and financial institutions (BFIs).

It pledges to implement a new system to mobilise loans to productive sectors at lower interest rates compared to other sectors from the last quarter of the current fiscal. A study will be conducted to measure the possibility of such provision before implementing it, Dr. Gunakar Bhatta, Spokesperson and Executive Director of the NRB, said while presenting the summary of the review via virtual press meet.

The NRB also said that it would review the risk weightage of import loan, real estate loan on land plotting, personal hire and purchase loan and margin lending. It would set a provision to allow the Infrastructure Development Bank to issue debentures.

It also informed about its plans to review the ceiling of the loans mobilised by the commercial banks to agriculture, energy, micro, cottage, small and medium enterprise sector. Other areas of possible review are the goods imports from India in credit facility, allowing NRNs to open bank accounts in convertible foreign currency and limit to the remittance companies’ money transfer inside the country.

Dr. Bhatta said that the refinance facility would now be focused to the areas that were severely affected by the COVID-19 pandemic and need further support in their revival.

The central bank also said that the resources would be ensured for the microfinance institutions so that their customers’ access to finance couldn’t be hindered.

Published in The Rising Nepal daily on 18 February 2022. 

NCC suggests accepting transaction price at customs

Kathmandu, Feb. 17

Nepal Chamber of Commerce (NCC) has suggested recognising transaction price and Letter of Credit (LC) at the customs point.

In a meeting with Director General of the Department of Revenue Investigation (DRI), Prakash Poudel on Thursday, the business body urged to accept the transaction price or LC in import-export business.

The reference price set at the customs has created problems in the Value Added Tax (VAT), said NCC President, Rajendra Malla. “The reference price has affected the entire revenue collection and helped in the proliferation of Hundi. It has also added complexities in issuing bills and receipts,” he added.

Malla urged Poudel to make the revenue monitoring system one-door, well-managed and business-friendly.

NCC has also requested the DRI to control illegal activities at the customs points, offer reward to the informants and punishment to wrong informers to make the border trade more effective. It would be better to impose fines instead of jailing in cases of revenue frauds and leakages, NCC suggested.

According to a statement issued by NCC, President Malla said that the recent provision imposed by the Nepal Rastra Bank to submit all details while making transactions above Rs. 700,000 is impractical.

Likewise, NCC suggested facilitating the trade in a way it would discourage import and promote export business. It emphasised on implementing full automation at the custom administration.

In response, DG Poudel expressed his commitment for trade facilitation.

“I am positive to the suggestions submitted by the NCC. The government will cooperate with the private sector on it,” he said.

Published in The Rising Nepal daily on 18 February 2022. 

Deal signed to develop smart city in Panchkhal

Kathmandu, Feb. 16

Nepal Infrastructure Bank Limited (NIFRA) and SMEC International Private Limited – a member of Singapore-based global urban infrastructure consulting firm Surbana Jurong (SJ) Group – signed a Memorandum of Understanding (MoU) for the development of a smart city in Panchkhal Municipality.

The MoU was signed by Chief Executive Officer of NIFRA, Ram Krishna Khatiwada and Country Head of SMEC in Nepal, Salim Jahan Fahim on behalf of their respective organisations at a programme organised here on Tuesday. Spokesperson of Panchkhal Municipality, Sanjay Lama was also present on the occasion.   

The SMEC and NIFRA will support to conduct the preliminary studies, initial structuring of the project and to exchange best practices on the development of smart cities.

“NIFRA will provide necessary facilitation and other services to SMEC during the engagement period. It will arrange necessary financing in coordination with other stakeholders as a lead financer for the development of the smart city after completion of required studies, designs and legal structuring of the project,” it said in a statement.

Panchkhal Municipality has taken the lead in securing the required land in coordination with landowners in the municipality. Panchkhal Smart City, the first of its kind in Nepal, covers an area of around 5,500 ropanis of land.

NIFRA has signed a separate MoU with Panchkhal Muncipality for the development of the smart city.

Meanwhile, NIFRA has also signed a contract with a US-based consulting firm Jones Lang LaSalle Property Consultants Private Limited for market study of the proposed Smart City. The company is scheduled to submit its report within eight weeks, outlining viability and broader opportunities of the project.

Khatiwada reiterated NIFRA’s commitment on developing the next generation smart city in Nepal. He added that the collaboration with the globally renowned infrastructure development consultant will certainly help to materialize this vision to develop the first smart city in Nepal which will be a model for replicating in other parts of the country.

Likewise, Lama said that the municipality is committed to providing all support that is required for the development of a smart city in Panchkhal.

Mohiuddin Mahmud, Deputy Chief Operating Officer-South and Central Asia, from SMEC said the professional experience of SMEC and SJ in developing smart cities will be instrumental for development of the Panchkhal Smart city soon.

 Published in The Rising Nepal daily on 17 February 2022. 

NRNA election committee publishes poll schedule

Kathmandu, Feb. 16

The Election Committee of the Non-Resident Nepali Association (NRNA) has published the election schedule for the election of the new working committee of the organisation.

The election for the 53-member International Coordination Council (ICC) with president, five vice presidents including one female and youth each, one general secretary, four secretaries including one woman, treasurer, and coordinators will be held on 21-22 March, 2022.

Stating that it received the details of the representatives for the General Convention on 14 February, it asked them to submit the evidences of their non-resident Nepali status and a selfie.

The names of the voters will be published on 23 February and the final list of the candidates will be published on March 12.

The committee has also informed that the nomination fee for the candidates of president is Rs. 1 million, vice president Rs. 700,000 and general secretary Rs. 600,000.

Likewise, candidates of secretary and treasurer have to deposit Rs. 500,000, joint treasurer Rs. 400,000 and coordinators Rs. 350,000 each.

 Published in The Rising Nepal daily on 17 February 2022.