Kathmandu: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has stated that the foundation for economic reforms is being laid in the country.



Dhakal made this remark during a meeting with Imad Fakhoury, Regional Director for South Asia at the International Finance Corporation, at the FNCCI Secretariat on Monday. In the meeting, Dhakal informed Fakhoury that the government has taken the suggestions given by the FNCCI and has moved forward with new-generation reforms.



Dhakal stated that the government, the private sector, and international development partners can work together to promote economic growth. Dhakal also mentioned that the two institutions could work together to improve the competitiveness of businesses in local and international markets. He also informed about the joint collaboration between the FNCCI and the International Finance Corporation on the report titled "State of the Private Sector in Nepal." Dhakal informed that the report has proven to be important for the business community and policymakers. Dhakal stated that the FNCCI is working with the International Finance Corporation Nepal team to introduce ESG (Environment, Social, and Governance) programmes in the private sector. Dhakal expressed confidence that the expertise of the International Finance Corporation and FNCCI's strong relationship with the local business community can make significant progress in transforming Nepal's economic landscape. During the meeting, Fakhoury stated that there is a need to place more emphasis on public-private partnerships. Fakhouri said that while Nepal is facing some economic challenges at this time, there are also many opportunities for the country.

Foundation for economic reforms being laid: Dhakal

Kathmandu: In response to the excess liquidity in the banking system, the Nepal Rastra Bank (NRB) will undertake a significant liquidity absorption operation on Sunday. The central bank has announced plans to withdraw Rs 100 billion through a bidding instrument.



The NRB’s move follows a previous operation on August 18, where it mopped Rs 100 billion through a similar bidding instrument, which is set to mature on Sunday. On the same day, the NRB will issue a new Rs 100 billion bidding instrument with a 21-day maturity period. This action comes after two earlier rounds of liquidity absorption on August 28 and September 4, where Rs 40 billion instruments were issued in each instance. Of these, Rs 22.2 billion was absorbed on August 28 and Rs 37.8 billion on September 4. These 21-day instruments are still pending maturity.



Since the start of the current fiscal year, the NRB has used deposit collection tools to absorb Rs 246.4 billion in liquidity, leaving Rs 158.6 billion still outstanding. With the Rs 100 billion maturing today, the NRB intends to continue its efforts to manage liquidity levels.



Additionally, under the Standing Deposit Facility (SDF), the NRB has absorbed Rs 5.675 trillion in liquidity, with Rs 120.15 billion remaining outstanding. For the current fiscal year, Rs 2.1215 trillion has been withdrawn from the system, with Rs 278.75 billion still outstanding, according to NRB reports.

NRB to drain Rs 100 bn from excess liquidity

Kathmandu: Under newly passed legislation, individuals convicted of cheque bouncing may face imprisonment ranging from one month to two years. This development was confirmed during a recent meeting of the Finance Committee on the Banking Offenses and Punishment (Second Amendment) Bill, 2080.



The committee detailed that the length of imprisonment will be contingent upon the value of the bounced cheque. Specifically, cheques amounting to up to Rs 1.5 million will result in a one-month prison sentence, while those up to Rs 5 million will incur a three-month term. Additionally, offenders will face a fine of five percent of the cheque’s value.



Finance Committee Chairman Santosh Chalise stated that these new measures are designed to address the persistent issue of unpaid dues despite existing legal penalties. The changes aim to ensure justice for victims and bolster the reliability of cheque transactions.



Deputy Prime Minister and Finance Minister Bishnu Paudel expressed support for the proposed changes, noting that the discussions on the bill have been productive. He stressed that the increasing incidence of cheque bouncing necessitates more stringent penalties to deter such offenses.



In related discussions, MP Surya Thapa proposed the national standardization of compensation or interest rates to enhance trust in cheque transactions. MP Dr. Prakash Sharan Mahat endorsed the combination of imprisonment with the five percent fine, while MP Dr. Swarnim Wagle suggested implementing even harsher penalties for cheques exceeding Rs 10 million.

New legislation imposes stricter penalties for cheque bouncing

Kathmandu: The Commission for the Investigation of Abuse of Authority (CIAA) is poised to enforce a ban on share trading activities within Singha Durbar, the seat of Nepal's government, following multiple complaints about misuse of office time.



The CIAA has decided to shut down the Trade Management System (TMS) used for share trading within the premises, responding to concerns that government employees have been engaging in stock market activities during office hours. The ban will be implemented through a directive issued via the Office of the Prime Minister and Council of Ministers. An official announcement regarding this action is expected to be made on Sunday.



The complaints allege that employees have been neglecting their official responsibilities to monitor stock prices and engage in trading, particularly with the recent surge in the share market. Reports indicate that employees have been using their mobile phones, laptops, and computers to keep track of the Nepal Stock Exchange (NEPSE) and TMS, leading to disruptions in their work.



The CIAA’s decision to address this issue comes in response to observations that employees have not been fulfilling their duties, such as commenting on files or providing necessary opinions and suggestions. The authority aims to mitigate this problem by restricting access to share trading systems during work hours.



Sources close to the CIAA suggest that the new directive will serve as a deterrent, encouraging employees to focus on their official tasks rather than engaging in share trading activities.

CIAA to ban share trading activities at Singha Durbar

Kathmandu: In the fiscal year 2023/24, significant measures were taken against 35 industrial institutions and employers found guilty of using child labor, a practice deemed illegal under current regulations.



The Labor and Employment Office in Hetauda carried out a comprehensive monitoring operation, inspecting 95 industries to ensure compliance with labor laws. As a result, those found in violation were collectively fined over Rs 400,000.



Chhanda Narayan Shrestha, chief of the Labor and Employment Office, reported that during the enforcement period, 35 children were rescued from exploitative working conditions in these industries. The majority of violations were committed by larger industrial establishments, which were also found to be lacking in proper appointment letters, fair remuneration, and adequate safety measures.



The offending industries have been instructed to overhaul their management practices and work environments to uphold labor rights and eliminate the use of child labor.



In addition to the enforcement actions, the government has been actively monitoring hotels, industries, and workshops for compliance. Complaints regarding unpaid wages were also addressed, with 79 complaints received over the past year. Of these, 60 were resolved through negotiations, while 19 cases remain under review.



The Labor and Employment Office has also launched an awareness program targeting child labor issues in the districts of Makwanpur, Chitwan, and Sindhuli to further combat this pressing problem.

Hetauda office cracks down on 35 industries for child labor violations

Kathmandu: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has drawn the attention of the newly appointed Chief Secretary, Ek Narayan Aryal, to the need for policy reforms and stability for rapid and sustainable economic development, even though there has been some improvement in the economy lately.



FNCCI President Chandra Prasad Dhakal stated that the high-level economic reform commission to be formed for the purpose of reform should work on this, and the FNCCI would assist in this. He said that the formation of a commission for a new phase of reform at the request of the FNCCI is positive.



Similarly, Dhakal urged Chief Secretary Aryal to take a positive view of the FNCCI's request to include the private sector in the order of precedence. It is also necessary to increase the use of technology to improve services for the general public and businesses and to ensure good governance, he added.



FNCCI President Dhakal also drew Chief Secretary Aryal's attention to the fact that laws have been made in such a manner that the private sector would also fall under the purview of the Commission for the Investigation of Abuse of Authority, which would discourage investment and urged him to take the initiative to remove this provision.



In the meeting, Chief Secretary Aryal expressed his understanding of the importance of the private sector and committed to working to encourage investment. Senior Vice President of the FNCCI, Anjan Shrestha, emphasised that policies should not be changed too frequently.



Vice President Hem Raj Dhakal expressed the view that the government should also take the initiative to stop unauthorised imports and enact laws to recover loans. The FNCCI's executive committee met with Chief Secretary Aryal on Monday.

FNCCI delegation meets Chief Secretary Aryal

Kathmandu: The Nepal Tourism Board (NTB) has reported a significant influx of visitors to Nepal in 2024, with a total of 720,334 tourists arriving in the country between January and August.



August 2024 alone saw 72,719 tourists, marking an increase from 67,153 visitors in August 2023 and 41,304 in August 2022. Despite this growth, current figures fall short of pre-pandemic levels, with August 2019 seeing 94,749 tourists.



The largest share of tourists this August came from India, with 25,832 visitors. China followed with 6,614 tourists, while the United States contributed 5,614 tourists. Additionally, Sri Lanka sent 4,851 visitors, and Bangladesh accounted for 3,077.



Monthly tourist arrivals for the year have varied, with January and February each welcoming around 79,000 visitors. March saw a peak with 128,167 tourists, followed by 111,376 in April and 90,211 in May. June recorded 76,736 tourists, July saw 64,599, and August rounded out the eight months with 72,719 visitors.

Nepal welcomes over 700,000 tourists in first 8 months of 2024

Kathmandu: The Millennium Challenge Corporation (MCC) Nepal Compact has officially signed a contract for an 18-kilometer cross-border electricity transmission line, a crucial element of the Electricity Transmission Project funded by the US and Nepal governments. The contract, worth USD 12.36 million, was awarded to Transrail Lighting Ltd and involves constructing the line from the 400 kV New Butwal Substation in Nawalparasi to the Nepal-India border. The project is slated for completion within 21 months.



The signing ceremony, held on the first anniversary of the MCC-Nepal Compact's Entry-Into-Force, featured Khadga Bahadur Bisht, executive director of MCA-Nepal, and Amol Wankhede from Transrail Lighting Ltd. Attendees included officials from the Ministry of Finance, Nepal Electricity Authority (NEA), and MCC.



Dr. Ram Prasad Ghimire, secretary of the Ministry of Finance and MCA-Nepal Board Chair, highlighted the importance of the project in advancing Nepal’s domestic power goals and enhancing regional energy trade. NEA Managing Director Kulman Ghising emphasized that the line represents a critical link in Nepal’s energy infrastructure and cross-border cooperation with India.



Diane L Francisco, MCC Resident Country Director, noted that the project is a significant milestone in transforming Nepal’s energy sector and sets the stage for a larger 297-km transmission line project. MCA-Nepal plans to launch the bid for the remaining 297 km by the end of the year.

Nepal and US sign major electricity transmission line contract

Kathmandu: Nepal Rastra Bank (NRB) has released today’s (Thursday) foreign currency exchange rates. The US Dollar, Australian Dollar, and Kuwaiti Dinar have seen an increase, while the Euro and British Pound have decreased.



The US Dollar is priced at Rs 134.03 for buying and Rs 134.63 for selling, up from Rs 133.99 and Rs 134.59 yesterday.



The Euro’s buying rate is Rs 149.12, with a selling rate of Rs 149.78, compared to Rs 149.66 and Rs 150.33 yesterday.



The British Pound stands at Rs 177.13 for buying and Rs 177.92 for selling, slightly down from Rs 177.17 and Rs 177.96 previously.



The Australian Dollar is set at Rs 90.96 for buying and Rs 91.37 for selling, up from Rs 90.92 and Rs 91.33 yesterday.



The Kuwaiti Dinar’s buying rate is Rs 439.00, and its selling rate is Rs 440.96, compared to Rs 438.91 and Rs 440.87 yesterday.



The Bahraini Dinar is priced at Rs 355.61 for buying and Rs 357.20 for selling, slightly up from Rs 355.56 and Rs 357.15 the previous day.

NRB updates foreign exchange rates: dollar and dinar up, euro and pound down

Kathmandu: Nepal Airlines Corporation (NAC) has experienced significant disruptions to its international flights due to the grounding of three aircraft. The issues have persisted for two days, affecting around 800 passengers across destinations including Kathmandu, Hong Kong, Doha, and Dubai.



The grounding stems from a hydraulic problem in NAC’s narrow-body aircraft, "Sagarmatha," leading to flight cancellations. The Civil Aviation Authority of Nepal (CAAN) ordered the grounding of "Sagarmatha," impacting NAC’s operations as three of its four international aircraft are currently out of service.



NAC Spokesperson Ramesh Poudel assured that affected passengers were accommodated at the Radisson Lounge and provided with alternative travel arrangements through other airlines. He emphasized that the airline managed hotel stays according to international standards and arranged new tickets for passengers.



Poudel reported that the airline incurred a loss of Rs 10 million from the cancellations on Tuesday. He also noted that one wide-body aircraft has been undergoing detailed maintenance in Italy, while another wide-body aircraft was dispatched for similar checks on Wednesday. Currently, NAC has only one of its two 'Twin Otter' aircraft operational for domestic flights.



The spokesperson highlighted that the NAC's limited fleet has exacerbated the impact of these disruptions, attributing the underlying issue to the insufficient number of available aircraft. Despite these challenges, NAC is working to resolve the situation and resume normal flight operations.

NAC faces major disruptions as 3 aircraft grounded

Kathmandu: Nepal and the United Kingdom have formalized two separate agreements for grant aid, valued at approximately Rs 13.08 billion, in a ceremony held on Wednesday.



The agreements include a Rs 6.5 billion grant for a programme aimed at enhancing resilience, adaptation, and inclusion in Nepal. The initiative, known as the Resilience, Adaptation, and Inclusion in Nepal (RAIN) programme, is a six-year project focused on improving disaster risk management and climate change adaptation. It will be implemented by Nepal’s Ministry of Home Affairs (MoHA) and the Ministry of Forest and Environment (MoFE) across the Karnali, Lumbini, and Madhesh provinces.



The second grant, amounting to Rs 6.58 billion, will support the Samartha programme, a seven-year initiative designed to bolster provincial and local government systems and capacities. This programme will concentrate on expanding access to quality social services, particularly in the education and health sectors. The Ministry of Education, Science and Technology (MoEST) and the Ministry of Health and Population (MoHP) will oversee the programme’s implementation in Lumbini and Madhesh provinces.



The Memorandums of Understanding (MoUs) were signed by Dhani Ram Sharma, Joint Secretary at Nepal’s Ministry of Finance, and Pippa Bird, Development Director and Deputy Ambassador at the British Embassy in Kathmandu.



In a statement following the signing ceremony, Joint Secretary Sharma remarked, “These two MoUs underscore the strong and enduring development cooperation between our nations. I trust that the involved government agencies will work together effectively to meet the goals of these programmes.”



Pippa Bird emphasized the UK’s commitment to assisting Nepal in tackling climate change, health challenges, and resource limitations. She noted, “These programmes will not only enhance resilience to natural disasters and climate change but also improve the delivery of essential services to the most vulnerable populations.”

Nepal and UK sign MoU for 13.08bn grant aid

Kathmandu: Since the cessation of power cuts and the restoration of a regular electricity supply, Nepal has experienced a dramatic increase in electricity consumption. According to the Nepal Electricity Authority (NEA), energy consumption has tripled over the past eight years.



In the fiscal year 2015/16, the country consumed 3.72 billion units of electricity. By the fiscal year 2023/24, this figure had soared to 10.02 billion units. This significant rise marks a turnaround from a period of negative growth in electricity consumption.



Residential users are now the largest consumers, using 4.31 billion units, followed by industrial users at 3.69 billion units. Per capita electricity consumption has risen from 131 units eight years ago to 400 units today.



Historically, power cuts were prevalent, with up to eight hours of daily interruptions during the monsoon and up to 14 hours in winter. Since mid-October 2016, power cuts have been gradually eliminated for residential areas and later for industrial sectors, culminating in a nationwide end to power cuts by mid-April 2018.



Currently, electricity access has expanded from 58 percent of households eight years ago to 99 percent. Of these households, 97 percent use the national grid while 2 percent rely on off-grid sources. The number of electricity customers has grown from 3 million to over 5.9 million, including community connections.



Kulman Ghising, Managing Director of NEA, highlighted that increased electricity consumption is driven by uninterrupted power supply, expanded industrial load approvals, greater use of electrical appliances, and rising adoption of electric vehicles.



To address growing demand and supply challenges, major cities have been divided into 11 clusters, and a master plan for transmission and distribution infrastructure through 2050 is being implemented.



In the past fiscal year, electricity consumption reached 102 billion units, up by about 10 percent from the previous year. Peak demand hit a record 2,212 megawatts on May 29.



While Nepal has the potential to export electricity to India during the monsoon, winter months may necessitate imports due to reduced hydropower output.



Despite this, the proportion of imported energy has decreased, and electricity exports increased by 44 percent. In the last fiscal year, Nepal imported 190 million units of electricity for Rs 16.93 billion and exported 195 million units for Rs 17.06 billion, becoming a net exporter with a surplus of Rs 130 million.

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