Kathmandu: After years of persistent lobbying, star hotels and tourism resorts in Nepal have been officially recognized as industries under a recent amendment to the Industrial Enterprises Act 2076. The government has reclassified these establishments into the national priority and productive industries category through an ordinance passed by the Cabinet, pending final approval from the President's Office.



This amendment, based on recommendations from the law reform task force, brings star hotels under the manufacturing industry umbrella, granting them access to industry-specific benefits. These include concessional rates and tax exemptions, particularly for electricity consumption, significantly reducing operational costs.



The recognition underscores the vital role of hotels in Nepal’s economy. As major contributors to employment and foreign exchange earnings, the sector’s new status is expected to facilitate greater access to government services, promote investment, and bolster the country’s tourism industry. The decision is seen as a milestone for the hospitality sector, offering opportunities for further growth and development.

Star hotels in Nepal recognized as industries

Kathmandu: The year 2024 witnessed a significant rise in emigration, with 1.674 million Nepalis traveling abroad, reflecting an increase of over 70,000 compared to 2023, according to the Department of Immigration. Economic opportunities and family reunification were the primary motivations for emigration. Among the total, 856,422 individuals left for employment, with men comprising the vast majority (769,890), while 96,197 women also sought jobs overseas.



Family reunification emerged as another significant factor, with 131,797 Nepalis joining relatives abroad, where women (77,257) outnumbered men (54,531). Permanent settlement also drove emigration, with 66,835 individuals relocating, almost evenly split between men (34,544) and women (32,287).



Education was a major draw for younger Nepalis, with 119,409 students going abroad to pursue studies, including 64,335 men and 55,068 women. Other categories of travel included tourism (274,428 individuals), business (20,101), medical treatment (18,713), and attending conferences or seminars (24,262).



The data underscores the growing trend of Nepalis seeking opportunities and stability outside the country, driven by the promise of employment, education, and family connections. This increase highlights both the opportunities and challenges posed by such significant outmigration for Nepal's economy and society.

Nepalis continue to leave in record numbers, driven by work and family reunification

Kathmandu: The Nepal Rastra Bank (NRB) has announced today's foreign exchange rates, with the US dollar reaching a record high, further strengthening the value of other foreign currencies.



According to the NRB, the buying and selling rates for the US dollar are Rs 138.23 and Rs 138.83, respectively, while the euro stands at Rs 140.86 for buying and Rs 141.47 for selling.



The British pound sterling is valued at Rs 167.59 for buying and Rs 168.32 for selling, and the Swiss franc is at Rs 150.77 and Rs 151.42, respectively. Similarly, the Australian dollar is valued at Rs 84.98 for buying and Rs 85.35 for selling, and the Canadian dollar is at Rs 95.80 and Rs 96.22.



Among Asian currencies, 10 Japanese yen have a buying rate of Rs 8.79 and a selling rate of Rs 8.82, while the Chinese yuan is at Rs 18.85 and Rs 18.93. The Saudi Arabian riyal is valued at Rs 36.82 for buying and Rs 36.98 for selling, the Qatari riyal at Rs 37.92 and Rs 38.08, and the UAE dirham at Rs 37.63 and Rs 37.80.



For 100 Indian rupees, the buying and selling rates are Rs 160 and Rs 160.15, respectively. High-value currencies like the Kuwaiti dinar, Bahraini dinar, and Omani rial are priced at Rs 447.52, Rs 366.67, and Rs 359.06 for buying and Rs 449.46, Rs 368.26, and Rs 360.62 for selling, respectively.



Other currencies such as the Malaysian ringgit, Thai baht, South Korean won, Swedish krona, Danish krone, and Hong Kong dollar also saw adjusted rates. The NRB has stated that these rates are subject to revision and may differ from commercial bank rates, with the latest updates available on the central bank's website.

US Dollar reaches record high in Nepali Market

Kathmandu: The Kaski District Court has granted bail to seven individuals, including Rabi Lamichhane, President of the Rastriya Swatantra Party, in connection with an alleged misappropriation of funds from Suryadarshan Cooperatives in Pokhara. The court's decision, issued on Thursday by a bench led by Judge Nitij Rai, followed a 10-day hearing.



Lamichhane, who is also a former Home Minister, was released on bail set at Rs. 6.5 million. Alongside him, six other accused were also granted bail, with varying amounts:



<ul>
<li>Chhabilal Joshi: Rs. 8.8 million</li>



<li>Leela Pachhai: Rs. 3.7 million</li>



<li>Mina Gurung: Rs. 500,000</li>



<li>Ram Bahadur Khanal: Rs. 1.5 million</li>



<li>Arati Gurung: Rs. 500,000</li>



<li>Krishna Bahadur Gurung: Rs. 100,000</li>
</ul>



The charges allege embezzlement of cooperative funds. According to court registrar Rajan Khanal, the decision was made to allow the accused to await further proceedings while out on bail.



On December 22, the Kaski District Attorney's Office filed charge sheets against 44 individuals, including Lamichhane, in connection with the case. In total, 63 individuals are facing charges related to the alleged misappropriation of funds.

Kaski District Court grants bail to Rabi Lamichhane and 6 others in embezzlement case

Kathmandu: The Millennium Challenge Corporation (MCC) Board of Directors has approved an additional $50 million in funding for the Nepal Compact, reinforcing the partnership between the U.S. development agency and Nepal in advancing the country's infrastructure and economic growth.



MCC Vice President of Compact Operations, Cameron Alford, announced the decision in a press statement on January 2, highlighting that the additional funding underscores the shared commitment between MCC and Nepal. “The additional funding reaffirms our mutual dedication to ensuring the compact's success in strengthening Nepal's electricity grid and supporting long-term economic growth,” Alford stated.



The Nepal Compact, part of MCC's broader mission to reduce global poverty through economic growth, focuses on transformative infrastructure projects aimed at improving Nepal’s energy sector, which is crucial for the country’s long-term development. The additional investment will further enhance efforts to modernize Nepal's electricity grid and promote sustainable economic development.

MCC approves $50 million additional funding to boost infrastructure and economic growth

Kathmandu: The cooperative sector in Nepal is set to undergo significant reforms as a new ordinance, issued by President Ram Chandra Paudel on Sunday, enforces stricter regulations aimed at enhancing governance and transparency.



One of the key provisions of the ordinance requires individuals depositing over Rs 1 million in cooperatives to disclose the source of their funds. This measure is expected to curb illicit financial activities and promote accountability within the sector.



In addition, the ordinance establishes the National Cooperative Regulatory Authority, a governing body tasked with bridging regulatory gaps. The authority will oversee the registration, operation, and monitoring of cooperatives, ensuring they adhere to proper governance standards.



The ordinance, effective immediately, will need to secure approval from both houses of the federal parliament to become permanent law. If either house rejects it, the ordinance will automatically be voided. The President also retains the power to revoke it.



While the government views these measures as essential for stabilizing the cooperative sector, concerns have been raised about potential opposition from cooperative activists over the stringent provisions. Despite this, the ordinance is seen as a critical step towards fostering a more robust and transparent cooperative industry in Nepal.

New ordinance introduces stricter rules for cooperative sector

Kathmandu: The value of the US dollar has increased, according to the new exchange rates set by Nepal Rastra Bank (NRB) for Wednesday. In addition to the US dollar, other foreign currencies, including the European euro, Canadian dollar, Chinese yuan, Saudi Arabian riyal, Qatari riyal, Thai baht, UAE dirham, Malaysian ringgit, Danish krone, Kuwaiti dinar, Bahraini dinar, and Omani riyal, have also seen a rise in value.



However, the value of the Swiss franc, Australian dollar, Singapore dollar, South Korean won, and Swedish krona has decreased in comparison to previous rates.



As per the latest exchange rates, the NRB has set the buying rate for one US dollar at Rs 136.03 and the selling rate at Rs 136.63. Similarly, the buying rate for the European euro is Rs 141.47, while the selling rate is Rs 142.10. The buying rate for the UK pound sterling is Rs 170.51, with the selling rate at Rs 171.27. The buying rate for the Swiss franc has been fixed at Rs 151.09, and the selling rate is Rs 151.76.



For other currencies, the buying and selling rates are as follows: the Australian dollar has a buying rate of Rs 84.79 and a selling rate of Rs 85.16, while the Canadian dollar is set at Rs 94.46 for buying and Rs 94.88 for selling. The Singapore dollar’s buying rate is Rs 100.08, with the selling rate at Rs 100.53. The Chinese yuan has a buying rate of Rs 18.64, and the selling rate is Rs 18.72. The buying rate for one Saudi riyal is Rs 36.23, and the selling rate is Rs 36.39.



The NRB has also set the buying rate for 100 Japanese yen at Rs 8.66, and the selling rate at Rs 8.70. Similarly, for 100 South Korean won, the buying rate is Rs 9.32, with the selling rate at Rs 9.36.



In terms of other Middle Eastern currencies, the buying rate for one Kuwaiti dinar is Rs 441.37, and the selling rate is Rs 443.32. The buying rate for one Bahraini dinar is Rs 360.44, and the selling rate is Rs 362.03. The Omani riyal’s buying rate is Rs 353.31, with a selling rate of Rs 354.86. Additionally, the buying rate for 100 Indian rupees is Rs 160.00, with the selling rate at Rs 160.15.



The NRB has mentioned that the exchange rates are subject to revision if necessary and that commercial banks may set different rates, which will be updated regularly on the NRB’s website.

US Dollar value rise in Nepali market

Kathmandu: AAR Corp, a US-based company, has been fined $55 million (approximately Rs 7.42 billion) by the US government after being found guilty of bribing Nepali officials during the procurement of two widebody aircraft for Nepal Airlines Corporation (NAC).



The company allegedly paid $2.5 million in bribes to secure a deal for the purchase of Airbus A330 planes. A statement from the US Department of Justice confirmed that AAR Corp violated anti-corruption laws, leading to the substantial penalty. The investigation revealed that an official from AAR admitted to bribing government officials in Nepal and South Africa, while also making $24 million in illegal profits.



The controversy traces back to December 2016 when NAC decided to purchase two widebody aircraft to address the need for long-haul flight capabilities, as the airline’s existing fleet of narrow-body planes was insufficient for longer routes.



Under the leadership of then-Prime Minister Pushpa Kamal Dahal, NAC’s board approved the purchase of two Airbus A330s with a seating capacity of 274 on January 26, 2017. A public notice inviting bids was issued in September 2016, with 10 companies submitting proposals, and AAR Corp was ultimately selected as the supplier.



In February 2017, NAC made an advance payment of $1 million to AAR, but complications arose during the contract finalization. AAR merged with German company Aviation Capital and Portugal’s Hi Fly to form a consortium, which set up a $1-capital company in Ireland to purchase the planes.



The consortium acquired two Airbus planes from the manufacturer and sold them to NAC for Rs 24 billion. Despite the involvement of multiple companies, NAC transferred $79 million to a German company’s account, raising suspicions about the deal.



The issue first came to light in mid-2017 when details of the payment became public. After the two planes arrived at Tribhuvan International Airport in 2018, allegations of corruption intensified, prompting the government to form a commission led by former Chief Justice Govinda Prasad Parajuli to investigate the deal.



However, due to procedural delays, the commission failed to proceed. Subsequently, the Public Accounts Committee of Parliament, led by Congress MP Rajan KC, conducted its own inquiry, uncovering irregularities worth Rs 4.36 billion in the procurement process. In April 2023, the Anti-Corruption Commission filed charges against 32 individuals, including former Tourism Minister Jivan Bahadur Shahi, NAC's former Managing Director Sugat Kansakar, and former Tourism Secretary Shankar Prasad Adhikari, at the Special Court.



On December 6, 2024, the Special Court found 10 individuals guilty, including NAC's then-chairperson Shankar Adhikari, Managing Director Sugat Kansakar, and board members Buddhi Sagar Lamichhane and Shishir Dhungana. However, former Tourism Minister Jivan Kumar Shahi and others were acquitted.



The widebody aircraft scandal has exposed significant governance failures and corruption in Nepal's aviation sector, sparking calls for stricter oversight in public procurement. The case has raised concerns over transparency and accountability in high-value contracts involving foreign suppliers and the need for greater scrutiny of government dealings in such matters.

US-based AAR Corp fined $55 mn for bribery in NAC aircraft deal

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.

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