Kathmandu: Foreign Minister Dr. Arzu Rana Deuba has called on Indian entrepreneurs to invest in Nepal's energy, infrastructure development, agriculture, tourism, and information technology sectors.



Speaking at the 'India-Nepal Economic Summit,' which began today in New Delhi, organized by Kathmandu University and India's Egrow Foundation, Minister Rana highlighted Nepal's liberalized policies on foreign investment and private sector promotion. She emphasized that Nepal offers a favorable investment environment with promising returns.



Minister Rana stressed the need to strengthen Nepal-India relations not just economically but also socially and culturally. She also discussed the significant strides in energy cooperation between the two countries, mentioning the recent power trade agreement that envisions Nepal exporting 10,000 MW of electricity to India within the next decade.



Additionally, she noted that Nepal, for the first time, has successfully exported 40 MW of electricity to Bangladesh via India's transmission lines, showcasing Nepal's growing capacity in energy production and trade.

Foreign Minister Dr. Arzu Rana Deuba urges Indian entrepreneurs to invest in Nepal

Kathmandu: Resignations within Nepal Police are on the rise, with 509 officers stepping down in the first four months of the current fiscal year 2024/25, spanning mid-July to mid-November. Most of those who resigned were lower-ranking personnel, according to Senior Superintendent of Police (SSP) and spokesperson Bishwa Adhikari. He cited opportunities in other sectors as a key reason for the departures.



The trend marks a continuation of increasing resignations. In fiscal year 2023/24, 792 officers left the force, 159 more than the 633 resignations in 2022/23.



Despite the exodus, recruitment efforts continue, with 622 new appointments made in the past four months. During the same period, 248 officers retired, 3,097 received awards, and 519 faced disciplinary action, SSP Adhikari reported.



This growing turnover raises questions about workforce stability within Nepal Police as the organization balances recruitment, retention, and disciplinary challenges.

Nepal Police faces rising resignations: 509 officers leave in 4 months

Kathmandu: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Korea Importers Association (KOIMA) have signed a Memorandum of Understanding to promote Nepali products in the Korean market and expand investment. The MoU was signed by FNCCI President Chandra Prasad Dhakal and KOIMA President Kim Byung-kwan at an event held in Seoul, South Korea on Thursday.



KOIMA is an organisation established in South Korea to promote an industrial environment and provide easy access to goods by importing industrial raw materials and, especially, goods not produced locally. 



FNCCI believes that cooperation with an organisation focused on imports will facilitate the expansion of Nepali products in Korea. This is expected to reduce the trade deficit between Nepal and South Korea, which currently stands at around Rs 7 billion.



Given that Nepal currently exports traditional goods such as felt, carpets and yarn, the FNCCI believes that cooperation with KOIMA will help find markets for industrial raw materials and other products.



At the event held to commemorate the 50th anniversary of diplomatic relations between Nepal and Korea and to sign the MoU, FNCCI President Chandra Prasad Dhakal stated that there is immense potential to strengthen economic relations between Nepal and Korea.



Speaking at the event titled ‘Investment and Trade Opportunities in Nepal’ organised by the Nepali Embassy in Seoul under the chief guest, Minister for Industry, Commerce and Supplies Damodar Bhandari, Dhakal said that Nepal's energetic and youthful workforce, natural resources and proximity to large markets are important for Korean investors.



Dhakal provided information about the progress made in Nepal's investment environment and highlighted the recent reforms made with the active involvement of the FNCCI. He informed about the government's steps to create an investment-friendly environment by amending eight investment-related laws. He also stated that endorsement of the framework of the Bilateral Investment Agreement is a significant step in facilitating foreign investment.



Dhakal also highlighted Nepal's favourable economic indicators. He informed the investors that foreign exchange reserves had reached around 17 billion US dollars and that Nepal had received its first-ever credit rating. He added that Nepal's rating was satisfactory in South Asia.



Dhakal emphasised the importance of infrastructure development and invited Korean expertise and investment in roads, railways, airports, urban planning, hotels, resorts, cable cars and smart cities.



Dhakal invited the Korean business community to explore trade and investment opportunities in Nepal and assured them of full support through the FNCCI's FDI Help Desk.

FNCCI signs agreement with Korea Importers Association

Kathmandu: The Commission for the Investigation of Abuse of Authority (CIAA) has raided the Department of Passport (DoP) following allegations of irregularities linked to server hacking and issues in the printing of e-passports. The raid, conducted last Thursday, resulted in the seizure of all relevant documents, according to CIAA sources.



The investigation centers on a Rs 12 billion tender for the printing of e-passports and financial misconduct in the selection of IDEMIA, a company tasked with printing 2 million e-passports. Concerns have been raised about the DoP repeatedly acquiring 3.1 million passport variations from IDEMIA, which exceeded the original agreement.



Reports allege that IDEMIA, responsible for the DoP’s software management, deliberately created system issues to influence the tender process in its favor. On November 28, the DoP issued two tenders, one containing a clause allowing acceptance if a single company fulfilled both criteria. The clause reportedly targeted IDEMIA, which has managed Nepal’s passport printing for over a decade. Technical issues in the passport system were resolved soon after the tender was issued, raising suspicions of manipulation.



Further allegations claim IDEMIA representatives pressured DoP officials and influenced tender specifications. Sources reveal that IDEMIA profited by printing variations of passports beyond the agreed contract, leading to financial losses for the government. The Office of the Auditor General highlighted irregularities in its 2080 BS report, noting a loss of $2.45 million due to additional passport orders.



The CIAA is also investigating the role of Siddhartha Pandey, IDEMIA’s representative in Nepal, in securing financial benefits. Pandey allegedly attempted to influence the investigation by approaching political figures, including Foreign Minister Arzu Deuba. The Foreign Minister was reportedly overseas during the developments.



DoP Director General Tirtha Raj Aryal has denied any connection between the tender process and system issues, stating that the tenders were issued in accordance with legal protocols and were unrelated to previous agreements. Despite these claims, government computer engineers have raised objections, accusing the DoP of tailoring specifications to favor IDEMIA, which is now positioned to print 6.4 million passports.



As the CIAA deepens its investigation, scrutiny intensifies over the financial and procedural misconduct in Nepal’s e-passport system, with potential repercussions for both the DoP and IDEMIA’s longstanding operations in the country.

CIAA raids Department of Passport over e-Passport irregularities

Kathmandu: The European Union (EU) has once again imposed a flight ban on all Nepalese airlines, preventing them from operating in European airspace. This decision is included in the latest update of the EU's "Safety List," which lists airlines and aviation service providers deemed unsafe to fly in European skies.



The ban applies to all Nepalese airlines, including both fixed-wing aircraft and helicopter service providers. Notably, none of the airlines, including Nepal Airlines and Himalaya Airlines, currently operate flights to Europe, and the restriction means they cannot access European airspace, even for charter flights.



The EU has maintained this ban for nearly 11 years. The first such restriction was imposed in 2013, and since then, Nepalese airlines have remained on the EU's Safety List, which bars them from entering European airspace. Efforts by Nepal's aviation authority, the Civil Aviation Authority of Nepal (CAAN), and the government to remove the country’s airlines from this list have so far been unsuccessful.



Experts suggest that one of the reasons for the continued ban is the failure to separate the roles of service provider and regulator in Nepal's aviation sector. The EU has indicated that the country's aviation regulatory body must adopt these reforms for the ban to be lifted.



Another theory points to Nepal's acquisition of Chinese aircraft, which some claim may have contributed to the continued placement on the EU’s Safety List.



However, some argue that the impact of the EU ban is limited, as Nepalese airlines do not currently fly to European destinations. "As long as we don’t fly to Europe, the issue with the Safety List is less significant," said an aviation expert. Nevertheless, in the future, if Nepal Airlines or Himalaya Airlines decide to operate international flights to Europe, they could face significant challenges due to this ongoing ban.

European Union continues flight ban on all Nepali airlines

Kathmandu: Rajbiraj Airport is set to commence night operations starting December 16, following the successful installation of a new instrument flight landing system (ILS) that enables safe flying in low visibility conditions.



The Civil Aviation Authority of Nepal (CAAN) announced the milestone after Buddha Air conducted a test flight on Friday, with the participation of CAAN officials and aircraft technicians. This successful flight confirmed that the airport is now capable of operating flights with a minimum visibility of 2,000 meters, a significant improvement over the previous minimum of 5,000 meters.



The new system, designed to ensure safe landings and takeoffs in reduced visibility, marks a major step forward for aviation in the region, enhancing connectivity and allowing for flights to operate even during the nighttime or in foggy conditions.



The move is expected to boost air travel options and support local and regional economic development.

Rajbiraj airport to begin night flights after installation of advanced landing technology

Kathmandu: The World Bank’s Board of Executive Directors has approved a $100 million development policy operation (DPO) to help Nepal advance its green, resilient, and inclusive development goals. This marks the second of a three-part program aimed at strengthening the enabling environment for Nepal’s sustainable development.



David Sislen, World Bank Regional Country Director for the Maldives, Nepal, and Sri Lanka, emphasized that the DPO series serves as a catalyst for Nepal to enhance resilience and long-term growth, benefiting all Nepalis. The program will support policy initiatives across sectors including green fiscal instruments, water security, irrigation, sustainable forest management, and climate and disaster information systems.



Since 2021, the Government of Nepal has implemented a comprehensive sustainability agenda addressing critical challenges such as unemployment, climate change, economic vulnerability, and environmental risks. The World Bank’s support aligns with Nepal’s development priorities, aiming to improve air quality, expand disaster risk management services, enhance water security, and strengthen community forest management.



Stephen Danyo, World Bank Program Leader for the region, highlighted the importance of integrating sustainability, resilience, and inclusion to drive long-term development in Nepal. The DPO series is expected to help attract investment in sectors crucial for job creation, livelihoods, health, and climate resilience.



This funding will bolster Nepal’s efforts to foster a more sustainable, inclusive future for its citizens.

World Bank approves $100 million to support Nepal’s green and inclusive development

Kathmandu: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCBCI), urged South Asia to reconsider its trade policies to protect vulnerable sectors while promoting green and inclusive growth. Speaking at the closing of the 15th South Asia Economic Summit on Friday, Dhakal highlighted the region’s slow progress in economic integration over the past decade, despite being one of the fastest-growing globally.



Dhakal expressed concern about the pressure on domestic industries due to reduced tariffs under the South Asian Free Trade Area (SAFTA), which has hindered the growth of local industries in smaller economies like Nepal. He also emphasized the potential of renewable energy in South Asia, particularly hydropower in Nepal, and called for a shared regional energy grid to reduce reliance on fossil fuels.



Addressing climate change, Dhakal warned that the region faces severe impacts but lacks sufficient resources for adaptation. He noted that South Asia needs an estimated $200 billion annually until 2030 to address climate challenges, urging greater regional cooperation and international support for green transformation.

FNCBCI President calls for rethink in South Asia's trade policies

Kathmandu: Operating hours at Tribhuvan International Airport (TIA) will be extended by two hours starting next month, following a month and a half of limited 14-hour operations.



Civil Aviation Authority of Nepal (CAAN) announced that the airport, which has been closed from 10:00 pm to 8:00 am since November 8 for taxiway expansion, will now operate for 16 hours a day due to the rapid progress of construction work.



Director General of CAAN, Pradeep Adhikari, confirmed that the extended hours will take effect next month, improving overall flight operations and airport capacity.

TIA to extend operating hours by 2 hours starting next month

Kathmandu: The Government of Nepal's financial performance for the first four months of the fiscal year 2024/25 has shown significant growth in both expenditure and revenue, according to the latest data released by the Ministry of Finance and the Financial Comptroller General Office (FCGO).



Total government expenditure during this period reached Rs. 415.02 billion, marking a 16.7% increase compared to the same period last fiscal year. The breakdown of expenditure includes recurrent costs of Rs. 292.53 billion, capital expenditures of Rs. 34.53 billion, and financial management outlays totaling Rs. 87.96 billion. The sharpest rise was seen in financial management, which surged by 61.5% from the previous year.



On the revenue side, the government mobilized Rs. 323.24 billion in total revenue, reflecting a 16.8% increase compared to the previous fiscal year. Tax revenue, which forms the majority of the government’s income, stood at Rs. 289.90 billion, up 14% from last year. Non-tax revenue also saw a significant rise of 49.3%, reaching Rs. 33.34 billion.



The surge in revenue was attributed to improved tax collection mechanisms and a rebound in economic activity, despite challenges in the global economy.



As of mid-November 2024, the cash balance of the government, including provincial and local governments, stood at a substantial Rs. 214.14 billion, a sharp increase from Rs. 91.78 billion in mid-July 2024. This indicates a healthy liquidity position for the government, although challenges remain in balancing expenditure across sectors.



At the provincial level, total expenditure amounted to Rs. 25.46 billion, while resource mobilization reached Rs. 55.35 billion. Of this, Rs. 44.72 billion was transferred from the central government, with the remaining Rs. 10.63 billion sourced from local revenues and other receipts.



While the government has made strides in revenue collection, the significant increase in expenditures, particularly in financial management and capital projects, highlights ongoing challenges in fiscal discipline and budget allocation. The government is expected to maintain its focus on boosting revenue generation and controlling non-essential spending to ensure fiscal sustainability in the remainder of the fiscal year.



The financial results for the first four months of FY 2024/25 suggest a mixed outlook for Nepal’s economy, with strong revenue growth but rising government expenditure, particularly in areas that could impact the long-term fiscal health.

Nepal govt's expenditure hits Rs. 415.02 billion in Q1 FY 2024/25

Kathmandu: The Asian Development Bank (ADB) has agreed to provide a concessional loan and grant totaling NPR 21.23 billion to Nepal for the implementation of a new advanced irrigation project. The agreement, signed on Wednesday between Nepal's Ministry of Finance and ADB, will fund the latest mechanical irrigation initiative.



Under the agreement, ADB will provide a grant of USD 15 million (approximately NPR 2 billion) and a loan of USD 110 million (around NPR 14.88 billion). The signing was conducted by Dr. Ram Prasad Ghimire, Secretary of the Ministry of Finance, and Arnoud Cachois, ADB's Country Manager for Nepal.



The project will enable farmers in the target areas to access advanced irrigation systems through a prepaid card system, allowing them to irrigate their fields based on specific needs. The project will be implemented in the districts of Rautahat and Sarlahi in the Madhesh Province, where over 121,000 farmers are expected to benefit.



The primary objectives of the project are to improve agricultural productivity, ensure year-round irrigation, and contribute to food security. The project will also incorporate underground irrigation systems to ensure long-term sustainability, with plans to establish an irrigation management company to oversee its operations.



In addition, a separate agreement for the Climate-Resilient Rural Infrastructure Project (CLRRIP) was also signed, which aims to enhance climate resilience in rural communities most at risk due to climate change, particularly in the Karnali and Sudurpashchim provinces. The CLRRIP will receive a grant of USD 22 million (about NPR 2.97 billion) and a loan of USD 10 million (around NPR 1.35 billion).

ADB provides concessional loan and grant Rs. 21.23 bn to Nepal for irrigation projects

Kathmandu: The Embassy of the Republic of Korea in Nepal hosted the 2024 Korea-Nepal Agriculture Cooperation Seminar in Kathmandu on December 8, celebrating the 50th anniversary of diplomatic relations between the two nations. The seminar focused on the expanding collaboration between South Korea and Nepal in the agricultural sector, following the signing of a bilateral Memorandum of Understanding (MoU) on November 2, 2023.



The MoU is aimed at enhancing cooperation in agricultural science and technology, livestock production, and agricultural processing. It will also enable institutions like the Nepal Agricultural Research Council and the Korea Agricultural Research Council to advance joint research in the agricultural field.



A delegation from the KOPIA Division, part of Korea’s Rural Development Administration, also attended the seminar, expressing their intention to establish a KOPIA Center in Nepal. This center will serve as a hub for agricultural innovation and technical support in the country.



During the event, South Korean Ambassador to Nepal highlighted the longstanding agricultural cooperation between the two countries. “Agriculture has been a cornerstone of our cooperation, reflecting our shared commitment to the prosperity of rural communities and sustainable development,” the Ambassador stated. He also noted the establishment of the Korea-Nepal Model Dairy Village in Kamalamai Municipality, Sindhuli District, which was created to mark the 50th anniversary of bilateral ties.



The Ambassador further emphasized South Korea's active engagement through the Korea International Cooperation Agency (KOICA), which has supported various initiatives aimed at boosting agricultural productivity and improving rural livelihoods in Nepal. These initiatives include increasing incomes in rural areas, developing the value chain for fruits and vegetables, and enhancing rural development programs.



Looking to the future, the Ambassador announced plans for technical research through the KOPIA project starting in 2025, aimed at improving the productivity of essential crops like rice and potatoes in Nepal. He also outlined how KOICA and KOPIA would collaborate to modernize Nepal's agriculture, enhance food security, and support rural communities.



“We are committed to deepening our agricultural partnership with Nepal by sharing expertise, technology, and resources. Together, we can create resilient and sustainable agricultural systems that ensure prosperity for generations to come,” the Ambassador concluded.



The seminar marks a significant step forward in the agricultural collaboration between South Korea and Nepal, reinforcing the two countries’ commitment to mutual growth and development in the sector.

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