Dr. Malla comes up with a motivational book

 Kathmandu, June 18

Banker Dr. Buddhi Malla has come up with a motivational book 'Safalata Sambhav Chha'  (success is possible).

President of the Management Association of Nepal Upendra Poudyal and President of Nepal Bankers' Association Sunil KC launched the book published by Shikha Books.

Performance Management Coach and author Dr. Madan Bista and journalist and writer Rohit Bhandari reviewed the book at a programme organised to launch the book in the Capital on Saturday.

The book contains 41 articles on various topics such as smart work, risk, teamwork, struggle, ethics, criticism, jealousy, morals, behaviour and respect.

Dr. Malla has told various motivational stories through the use of mythical and circumstantial analogies.

He has included the stories of successful people like Bill Gates, The Rock, Prithvi Narayan Shah, Edmund Hillary, Milkha Singh, Jim Kerry, Jhamak Kumari, Henry Ford, Dasharath Majhi, Jack Ma, Sanath Jayasuriya and Sachin Tendulkar. Likewise, stories from Lord Buddha have also been presented in the book. Through these stories, Dr. Malla has made an attempt to give examples that success is possible.

Poudyal said that the book has given a message that people should move ahead with a positive attitude if they wanted to achieve success. "It’s about identifying possibilities within the self and raising self-confidence. It will certainly motivate people," he said.

Dr. Malla is a PhD and is currently serving as Assistant General Manager at NMB Bank. Earlier, he served as the CEO of Om Finance Limited. 

Published in The Rising Nepal daily on 19 June 2023.

Coffee entrepreneurs want a policy on contract farming

 National Coffee Expo opens

 

Kathmandu, June 17

Stakeholders and experts have stressed on increasing the production of coffee in Nepal.

Speaking at the inaugural programme of the four-day National Coffee Summit and Expo 2023 that kicked off in the Capital on Saturday, they said that the area of coffee plantation should be expanded and policy should be enacted to allow contract farming.

According to Nepal Coffee Producers' Association (NCPA), against the potential of 11,000 tonnes only 319 tons of coffee is being produced in Nepal. The government had unveiled the first ever National Coffee Policy in 2006 but due to poor implementation, there was no progress in this sector.

"There is a need of identifying the problems in coffee production and implement the reform initiatives at the earliest. At the same time, we need better product and market promotion," said Om Nath Adhikari, President of NCPA.

According to him, due to the limits to own a large piece of land, corporate investment couldn't be attracted to coffee production and only small-holders have been active in the sector. In order to increase corporate investment, the government should create favourable environment with better policies.

"Limit on land size should be removed, forest land should be opened to grow coffee, insurance of coffee should be available, and producers should be facilitated with concessional loans," said Adhikari.

Secretary of the Ministry of Agriculture and Livestock Development (MoALD), Dr. Govinda Prasad Sharma, said that utilisation of fallow land and contract farming could be key to attract more investment in this sector and expand plantation and production.

While about 43 districts in the country have been found good for coffee plantation, it has been grown in only 20 districts in the hills of central and western Nepal.

Likewise, he maintained that the country needed skilled technical manpower, coffee research institution and support to grow organic products.

There is no dearth of demand, the country only needs to increase the production of high-quality coffee, according to Govinda Bahadur Karki, Joint Secretary of the Ministry of Industry, Commerce and Supplies (MoICS).

He also said that one-window system of policy implementation and facilitation was needed to provide growth impetus to this sector.

Similarly, Executive Director of the Trade and Export Promotion Centre, Sharad Bikram Rana, suggested giving priority to high value products, not to high volume ones.

"I think this is the time to focus on the domestic demands first since the demand of coffee is growing rapidly in Nepal," he said.

Addressing the programme, Hemraj Dhakal, Vice-President of the Federation of Nepalese Chambers of Commerce and Industry, said that the forest land should be leased out to the coffee producers in order to increase the production.

Stating that the budget and monetary policy should address the demands of coffee producers, Dhakal said that there should be a close cooperation between the MoALD and MoICS to facilitate the sector.

The event will run till June 20 and will serve as a platform for coffee producers, exporters, traders, industry experts, policymakers, and coffee enthusiasts to engage in insightful discussions, networking, and knowledge exchange.

This event aims to foster collaboration, innovation, and sustainable practices within the coffee value chain while highlighting the unique characteristics and potential of Nepali coffee on the global stage, said the organizer.

The national event is supported by the MoICS, MoALD, National Tea and Coffee Development Board (NTCDB), Nepal Tourism Board (NTB), and European Union Trade and Investment Programme, International Trade Centre.

The expo will feature products, services, and innovations of coffee producers, equipment manufacturers, exporters, and other industry-related businesses.

Additionally, the summit is also hosting coffee competitions (Barista Championship, Brewing Championship and Latte Art Championship) to recognise and reward excellence in different categories.

Published in The Rising Nepal daily on 18 June 2023.

Upcoming budgets of provinces witness a shrink

Kathmandu, June 16

Six provinces on Friday unveiled their annual income and expenditure statements in the respective Provincial Assemblies while Koshi Province government unveiled its budget for fiscal year 2023/24 through an ordinance on Thursday. 

In total, the seven provinces unveiled the budget of Rs. 279.57 billion with Bagmati Province having the largest budget at Rs. 62.70 billion. Bagmati announced the largest budget among the provinces with the expenditure estimates of Rs. 62.70 billion while Sudurpaschim’s budget size is the smallest – Rs. 29.26.

Karnali province brought out the budget larger than Sudurpaschim and almost at par with Gandaki. Provinces have reduced the size of their budget of the next fiscal compared to this year.

 

Bagmati: Rs. 62.70 billion

Bagmati Province has unveiled the largest budget among seven provinces amounting to Rs. 62.70 billion for the next fiscal year 2023/24.

Economic Affairs Minister of the Province, Bahadur Singh Lama, presented the budget at the Provincial Assembly on Friday.

The government has allocated Rs. 26.60 billion for recurrent expenditure, Rs. 35.50 billion for capital expenditure and Rs. 500 million for financial management.

The share of recurrent, capital and financial management in the budget is 42.58 per cent, 56.62 per cent and 0.8 per cent respectively. 

The province aims to raise Rs. 25.17 billion from tax revenue, Rs. 5.26 billion from other revenue, Rs. 17.81 billion in fiscal transfer from the federal government and reserve of the current fiscal year and Rs. 14.55 billion from other recipients. 

Compared to the current fiscal year’s budget of Rs. 70.93 billion, the size of the budget is smaller with an increased recurrent expenditures and reduced capital expenditure.

Giving priority to agriculture development, the Bagmati province government has allocated Rs.3.38 billion for the agriculture sector.

Similarly,  Rs. 2.16 billion has been allocated for the Ministry of Tourism, Industry and Urban Development, Rs. 3.03 billion for the Ministry of Forest and Environment, Rs. 770 million for the Ministry of Labour, Employment and Transport, Rs. 4.07 billion for the Ministry of Health and Rs. 21.66 billion for the Ministry of Physical Infrastructure.

The purpose of the budget is to create jobs and alleviate poverty through the development of the agricultural sector, increase investment in economic and social infrastructure, strengthen the foundation of a socialist-oriented economy, achieve sustainable economic development by increasing production and productivity and protect and use natural resources.

The budget aims to adopt frugality in government expenditure, maintain financial discipline and ensure efficient allocation.

The government has abolished various allowances in order to cut current expenditures.

The budget has taken a policy of promoting homestays and expanding tourism infrastructure and service facilities to extend the stay of tourists.

For the promotion and development of religious, cultural, environmental and rural tourism in Bagmati Province, it has made arrangements to celebrate the year 2024 as the Year of Visiting Bagmati Province.

 

Madhes: Rs. 44.11 billion

The government of Madhes Province has announced the budget or Rs. 44.11 billion for the upcoming Fiscal Year 2023/24.

Minister for Economic Affairs of the province, Sanjaya Kumar Yadav presented the budget at the provincial assembly. The size of the budget is smaller by Rs. 2.77 billion from Rs. 46.88 billion of the current fiscal.

He allocated Rs. 25.69 billion (58.25) for capital expenditure, Rs. 18.22 billion (41.30 per cent) for recurrent expenses, and Rs. 200 million (0.45) for financial management.

The budget has given priority to infrastructure development, enhancing the quality of education and health services, expanding irrigation facilities, employment and good governance.

Madhes government aims at raising about Rs. 4.38 billion from internal revenue and receiving Rs. 11.38 billion from the federal government's revenue distribution.

Likewise, other sources of income are fiscal equalization grant from the central government Rs. 7.41 billion, savings from the current FY's Rs. 12.90 billion, special grant Rs. 490 million, matching grant Rs. 980 million and conditional grants from the federal government Rs. 4.56 billion.

Minister Yadav said that after managing these resources, the budget still faces a deficit of Rs. 2 billion which would be raised from internal borrowing.

He complained with the federal government for pledging the least grants to the provinces in the next FY. "The government of Madhes province has taken this case seriously since its major resources were the federal grants. So, we urge the federal government to immediately fulfill its commitments," he said.

 

Lumbini: Rs. 40.47 billion

Similarly, Lumbini provincial government announced a budget of Rs. 40.47 billion for the upcoming Fiscal Year 2023/24. Economic Affairs Minister of the province, Dhan Bahadur Maski, announced the budget which is smaller by Rs. 2.16 billion compared to that of Rs. 42.63 of this FY 2022/23.

Giving priority to infrastructure construction, education, health, agriculture, tourism and employment, Minister Maski allocated Rs. 23.25 billion (57.45 per cent) for capital expenditure.

He earmarked Rs. 13.63 billion (33.68 per cent) for recurrent Rs. 3.58 billion (8.87 per cent) for fiscal transfers. A major reduction (Rs. 2.16 billion) is made in fiscal transfers.

The provincial government aims to raise Rs. 6.73 billion from internal revenue.

Similarly, it has been estimated that Rs. 11.3 billion will be collected from the revenue distribution,  Rs. 29 million from royalty, and Rs. 2.5 billion from the local levels.

The federal government's fiscal transfer will be reduced by about Rs. 3 billion in the next FY.  This year, Lumbini has received Rs. 18.47 billion in grants which have been reduced to Rs. 15.38 billion for the next fiscal. The fiscal equalisation grant is reduced to Rs. 8.14 billion for the next FY from Rs. 8.54 this year and the conditional grant is adjusted to Rs. 5.83 billion from Rs. 8.71 billion.

Likewise, the special grant has been decreased to Rs. 560 million from Rs. 883 million but matching grant is increased to Rs. 840 million for the next year from 739 million of this year.

The government has allocated Rs.1 billion to implement Chief Minister's Economic Development Programme. Promoting employment by developing skills, capital and technology have got priority. The provincial government has also arranged budget to promote domestically produced alcohol.

 

Gandaki: Rs. 33.42 billion

Similarly, the Gandaki Province government has unveiled a budget of Rs. 33.42 billion for the next fiscal year 2023/24.

Minister for Economic Affairs and Planning of Gandaki Province Jit Prakash Ale Magar presented the new budget at the province assembly meeting.

The government has presented a smaller budget for the next fiscal year as compared to the current fiscal year’s budget.

Out of the budget allocation, Rs. 12.73 billion (38.1 per cent) has been allocated for recurrent expenditure, Rs.  20.19 billion (60.4 per cent) for capital expenditure and Rs. 500 million  (1.5 per cent) for financial management.

It is estimated that Rs. 7.62 billion from the financial equalisation grant received from the federal government and Rs. 9.5 billion from the revenue sharing are the sources of expenditure in the next fiscal year.

The government projected that Rs. 400 million will be received from royalty distribution, Rs. 4.94 billion for conditional grants, Rs. 840 million for supplementary grants and Rs. 700 million for special grants.

It is estimated that Rs. 5.16 billion will be mobilised from the internal sources of the province.

The Minister for Finance has estimated that there will be a cash balance of Rs. 3 billion from the implementation of the programmes for the current fiscal year.

 The Gandaki Province government has reduced the cash subsidy programme through the budget brought and made it production based.

The government has given priority to increasing production and productivity of agricultural goods, promote tourism, employment generation and sustainable and durable physical infrastructure.

 

Sudurpaschim: Rs. 29.26 billion

In Dhangadhi, Sudurpaschim Province government unveiled Rs. 29.26 billion budget for the next Fiscal Year 2023/24.

Economic Affairs Minister of the province, Naresh Kumar Shahi, presented the budget for the next fiscal year at the provincial assembly. The size of the budget is smaller by Rs. 7.48 billion compared to that of the current fiscal year's Rs. 36.74 billion.

According to Shahi, the government has allocated Rs. 9.59 billion (32.79 per cent) for recurrent and Rs. 17.2 billion (58.16 per cent) for capital expenditures. Likewise, Rs. 2.34 billion (8.02 per cent) has been allocated for inter-governmental fiscal transfers and Rs. 300 million (1.03 per cent) for financial arrangements.

The government has allocated Rs. 960 million (Rs. 30 million each) for all 32 constituencies of the province. A total budget of 96 million rupees has been allocated for this programme.

The province aims to raise Rs. 1.50 billion from internal revenue to finance its expenditures. Likewise, Minister Shahi informed that the provincial government is likely to get Rs. 9.41 billion from the federal government in revenue distribution.

Similarly, Rs. 8.52 billion will be received in fiscal equalisation grant from the federal government while Rs. 3.86 billion would be saved from the allocations of the current FY.

It is also said that Rs. 4.51 billion will be received as conditional grants, Rs. 770 million as matching grant and Rs. 620 million as special grants from the federal government.

 

Karnali: Rs. 33.37 billion

Karnali Province government has unveiled a budget of Rs. 33.37 billion for the next fiscal year 2023/24.

Minister for Economic Affairs and Planning of Karnali Province government Bedraj Singh presented the annual income and expenditure of the province at the meeting of the Provincial  Assembly.

The Karnali government has allocated around  Rs. 9 billion (26.97 per cent) under the heading of recurrent expenditure, Rs. 19.57 billion (58.65 per cent) under the capital expenditure, and Rs. 4.80 billion (14.38 per cent) under fiscal transfer.

For the current fiscal year 2022/23, the provincial government had unveiled budget of Rs. 32.74 billion. Despite the reduction in fiscal transfer from the federal government, the provincial government’s budget is bigger by Rs. 1 billion than the current fiscal year.

The province has set a target to mobilise Rs. 836 million from the internal revenue of the province, Rs. 7.41 billion surpluses of the current fiscal year, Rs. 8.84 billion from the revenue distribution received from the federal government, Rs. 10.16 billion for financial equalisation, Rs. 761.6 million for supplementary grants.

It is estimated that Rs. 597.9 million will be mobilised towards special grants and Rs. 18.6 million will be mobilised through foreign aid. In the allocated budget, a total of Rs. 4.80 billion has been transferred to the local level.

Similarly, Rs. 1.16 billion has been allocated to the local level wards through the Chief Minister Employment Programme, said Minister Singh.

Out of the allocated budget, the government has set aside Rs. 10.14 billion for physical infrastructure, transportation and urban development.

Similarly, Rs. 3.53 billion has been allocated for the Ministry of Water Resources and Energy Development, Rs. 941 million to run programmes related to drinking water and sanitation, Rs. 2.11 billion for programmes related to land management, agriculture and cooperatives, Rs. 2.14 billion for industry, tourism, forest and environment.

The budget has targeted to create at least 10,000 jobs every year through Karnali Prosperous Campaign in multi-sector use and multi-stakeholder partnership.

A policy has been taken to expand the scope of taxes related to revenue mobilisation.

 The Koshi Province government unveiled a budget of Rs. 36.24 billion on Thursday.

(Written jointly with Laxman Kafle with inputs from Ram Mani Dahal, Navin Shahi, Bhuwan Karki, Dhirendra Prasad Sah, Abinash Chaudhary.)

Published in The Rising Nepal daily on 17 June 2023.

MI launches two latest monitors in Nepal

Kathmandu, June 16

Xiaomi has announced the launch of its latest Mi 23.8-inch Desktop Monitor 1C and the Mi Desktop Monitor 27-inch.

These monitors are designed to elevate the desktop computing experience with their exceptional features and advanced technology, the company said in a statement on Friday.

The Mi 23.8-inch Monitor is crafted to provide users with a visual experience. The IPS FHD display offers clear and realistic picture details as well as 178° viewing angle, making it ideal for both work and entertainment purposes.

The 27-inch also has powerful performance. The 27-inch IPS FHD display offers clear and realistic picture details with 178°viewing angle.

With an ultra-slim body and a thickness of at least 7.3-7.5mm, they not only offers a sleek and modern look but also saves valuable desk space, read the statement.

The market price of the 27” Monitor and 23.8” Monitor 1C is Rs. 22,999 and Rs. 19,999 respectively.

Published in The Rising Nepal daily on 17 June 2023.

British Council opens application for IELTS Prize 2023

Kathmandu, June 16

Applications for the British Council IELTS Prize 2023 in Nepal are now open.

The annual competition supports IELTS test-takers with up to £5,000 (Rs. 830,000) towards university tuition fees in English-speaking universities.

This year, the IELTS Prize is open to test takers living in China, Japan, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam, Bangladesh, Pakistan, Nepal and Sri Lanka.

"It will be open to students who have applied for undergraduate or postgraduate studies locally or overseas through IELTS and will begin their course from January 2023 to March 2024," the British Council informed in a statement on Friday.

The deadline for submitting completed applications is September 15, 2023.

A total of three winners will be selected through a competitive application process in each country to receive a cash prize to support their studies

Maxim Raimann, General Manager, Exams, British Council Nepal said “IELTS Prize winners are those who are determined to take what they have learnt from their studies abroad and apply them to their home communities.”

Published in The Rising Nepal daily on 17 June 2023.

COVID-era facilities won't last long: Governor Adhikari

Kathmandu, June 15

Governor of the Nepal Rastra Bank (NRB), Maha Prasad Adhikari, stated the facilities given to the businesses would not be continued any further and the private sector should not lobby for the same.

"It is illogical to demand the continuation of the facilities offered during the challenging times like coronavirus," he said while speaking at the discussion programme on Monetary Policy for the Fiscal Year 2023/24 organised by the Management Association of Nepal (MAN) in the Capital on Thursday.

According to him, in the post-COVID scenario, the government and central bank had supported, despite limited resouorces, the businesses that were facing challenge in repayment of the loans and rehabilitation of their businesses.

The central bank allowed restructuring and rescheduling the loans as per the requirement of the size of business. Loan payment deferrals were also allowed. Likewise, a large fund was created to provide refinancing facility to the pandemic-affected businesses.

Stating that the monetary expansion in the next fiscal 2023/24 would be guided by the rates of economic growth and inflation as targeted by the government in its budget speech for that year, Governor Adhikari expressed his hopes that the ever-increasing price of goods and services would be moderated next year.

Through the budget of FY 2023/24, Finance Minister, Dr. Prakash Sharan Mahat, projected 6 per cent Gross Domestic Product (GDP) growth and 6.5 per cent inflation rate.

The Governor of the central bank said that financial inclusion and digital financial services are the priority areas of the NRB.

Published in The Rising Nepal daily on 16 June 2023.    

Stakeholders urge to fill the regulation void in microfinance and cooperatives

 Kathmandu, June 15

Stakeholders have suggested for a strict regulation of microfinance and cooperatives sector in order to check the financial anarchy and embezzlement of the hard-earned money of people.

Indicating to a partial void in regulation in microfinance and lack of rein to tame cooperatives for the past many years, they said that the recent events including loan duplication in microfinance, and misuse and personal use of public money deposited in savings and credit cooperatives could erode the trust of people on the entire financial sector.

Speaking at a discussion programme on Monetary Policy for the Fiscal Year 2023/24 organised by the Management Association of Nepal (MAN) in the Capital on Thursday, they indicated to the urgent need of second-tier regulator to supervise and monitor cooperatives.

Budget for the next FY has also promised to form a second-tier institution to address the problems in the cooperative sector.

Economist Dr. Resham BahadurThapa, suggested that the microfinance and cooperatives shouldn't be left unmanaged and in anarchic state. According to him, innovative measures were needed to address the challenges seen in these sectors.

 

Need for second-tier regulator

Minraj Kandel, President of National Cooperatives Federation, suggested immediately establishing second-tier institution to monitor and supervise cooperatives.

According to him, various provisions of the cooperatives act such as credit information centre have not been implemented. "Agricultural cooperatives should be provided with soft loan to promote production and it should be included in the monetary policy of the next fiscal," he said.

However, Dr. Yuba Raj Khatiwada, former Minister for Finance and former Governor of the NRB, said that the cooperatives sector should not be brought under the jurisdiction of NRB's regulation.

He also suggested for a special institution which could be second-tier regulator to regulate the cooperatives sector. "The central bank can help and facilitate this institution in better regulating and monitoring the cooperatives sector," said Dr. Khatiwada who is also the former President of MAN.

He expressed worries that the microfinance sector is left unregulated and unsupervised, and suggested for immediate actions from the banking sector regulators. Microfinance institutions in Nepal have the responsibility of supporting the ultra-poor in livelihood options and thus help in poverty alleviation. They are facilitated with the concessional loans from the class 'A', 'B' and 'C' banks and financial institutions.

 

Support agriculture

Dipendra Bahadur Kshetri, Former Governor of the central bank and former Vice-Chairman of the National Planning Commission (NPC), suggested the NRB to establish a unit to estimate the need of fund needed to be invested in agriculture's various sub-sectors like paddy, maize, pulses and cash crops.

"This would be an important step as it would help to make the economy self-sufficient in some of the agricultural produces," he said while adding that the bank loan on agriculture should reach the farmers/producers in Nepal, not the traders.

 

NRB studying microfinance status

In response, Governor of the NRB, Maha Prasad Adhikari, informed that to address the maladies in the microfinance sector, a committee formed by the central bank is studying the situation. The committee will also offer recommendations to improve the situation.

"The wrongdoers will be punished but blaming the entire microfinance sector is not appropriate. It has empowered women and uplifted ultra-poor population," he said.

Governor Adhikari maintained that it is the responsibility of the central bank to regulate and monitor the sector.

Stating that financial transactions in savings and credit cooperatives are still out of supervision, he expressed worries that if there is a run in cooperatives, no one can control the crisis.

"We feel that the root cause is the investment in real estate," he said.

 

 Banks are over-capitalised

Dr. Khatiwada said that the banks in Nepal are already over-capitalised in comparison to the size of the national GDP, and suggested the BFIs not to increase the capital base as they are already in comfortable situation.

"Give priority to income generation, not asset accumulation, loan mobilisation in speculative business areas should be controlled," he said while adding that it wouldn't be wrong to allow diluting 10 per cent of promoter's shares, with the condition of barring the businesspersons from buying them.

Dr. Khatiwada suggested bringing the spread rate below 4 per cent, not allowing the BFIs to create cartel in determining interest rates. He also said that the NRB should be worried about the inflation rate not the loan mobilisation rate.

Stating that the government has set the limit of bonds in the budget which should be left to the decision of the central bank, he maintained that the government must not try to micro-manage the central bank.

 

'Implement digital currency'

Dipendra Purush Dhakal, Former Governor of the NRB, said that the upcoming monetary policy should be tight as well as facilitative so that it could support the domestic production and business and check the import of unwanted and luxury goods.

He said that merger policy for banks and financial institutions (BFIs) should be continued to reduce their numbers.

According to him, common digital currency should be created and implemented within a year from now. It is necessary to develop the financial sector on a par with neighbouring India.

President of Hotel Association of Nepal, Binayak Shah, said that tourists should be allowed to make their local payments to hotels in local currency.

Bangladeshi and Sri Lankan tourists should be provided with the facility to exchange their national currency in Nepal's local currency. It will be massive help to attract more tourists from the neighbourhood and abroad, he said.

Gyanendra Dhungana, former President of Nepal Bankers' Association, said that BFIs are still unable to meet the target of special sector loan such as the small and medium enterprises (SMEs), and they might need an extension of time to implement this provision.

Similarly, Kamlesh Kumar Agrawal, Senior Vice-President of Nepal Chamber of Commerce, demanded an expansionary monetary policy to protect the private sector.

"Current trend of high interest rate wouldn't support the expected growth in the economy. So, the spread rate should be brought down to 3.5 per cent," he said.

Anal Raj Bhattarai, coordinator of Banking Committee at the Confederation of Nepalese Industries, said that monetary policy should be formulated keeping in mind the constraints and demands of a least developed and landlocked nature of the country.

 Published in The Rising Nepal daily on 16 June 2023.