Kathmandu: On Thursday, the Nepse index, which measures sharp fluctuations throughout the day, declined by only one point at the close. Of the 13 sub-indexes traded on Nepse, 7 sub-index have declined and 6 sub-index have increased.



The largest development banks grew by 2.04 percent, while the most 'other' groups declined by 1.19 percent. Share prices of many companies have risen compared to Wednesday. Of the 219 companies traded, the share price of 113 companies decreased while the share price of 93 companies increased.



Of the traded companies, the share prices of the remaining 11 companies remained stable.



On Tuesday, the Nepal Securities Board (NSB) named 51 companies and said that the share price of these companies has increased unnaturally. The epicenter was reported below the ground, however; no tsunami alert was issued. The transaction amount has also slowed down. The transaction amount could not reach Rs 11 billion on Thursday.

Prices of 113 companies fell as Nepse fell by one point

Kathmandu: The World Bank’s Board of Executive Directors today approved a $150 million development policy credit to support Nepal’s resilient recovery from the COVID-19 pandemic, protect the most vulnerable, and support sustainable growth.



“Amid the economic and social impacts of the pandemic, our priority is to provide immediate relief to affected populations and support Nepal’s green, resilient, and inclusive recovery,” stated Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka.



The Nepal Programmatic Fiscal Policy for Growth, Recovery and Resilience will help strengthen Nepal’s institutions and regulations, including its tax and customs system, debt management, and public capital spending.



It will also support the immediate health response and help modernize social protection programs, build access to capital and digital solutions for the private sector, and lay a regulatory foundation for a green recovery.



“This development policy credit supports the government of Nepal’s efforts to address the social and economic impacts of COVID-19 and overcome structural constraints to a resilient economic recovery,” stated Kene Ezemenari, Senior Economist and the World Bank’s Task Team Leader for the program.

World Bank supports Nepal with $150 mn for Pandemic response and recovery

BBC: The World Bank has rejected a request from El Salvador to help with the implementation of Bitcoin as legal tender.



The international lender cited concerns over transparency and the environmental impact of Bitcoin mining.



Earlier this month, the Central American country announced plans to become the first nation to formally adopt the digital currency.



It aims to use Bitcoin as a parallel legal tender alongside the US dollar.



The World Bank's decision could mean the country faces problems in hitting its deadline to ensure that Bitcoin is accepted nationwide in the next three months.



"We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," a World Bank spokesperson told the Reuters news agency via email.



"While the government did approach us for assistance on Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings," they added.



It comes after El Salvador's Finance Minister Alejandro Zelaya said on Wednesday that the country had asked the World Bank for technical assistance with the implementation of the cryptocurrency as an official method of payment.



Mr Zelaya also said that discussions with the International Monetary Fund (IMF) have been successful, saying the IMF was "not against" the implementation of Bitcoin.



But the IMF last week said it saw "macroeconomic, financial and legal issues" with El Salvador's adoption of Bitcoin.



Last week, El Salvador became the first country in the world to officially classify Bitcoin as a legal currency.



Its Congress approved President Nayib Bukele's proposal to embrace the cryptocurrency.



President Bukele said the government had made history, and that the move would make it easier for Salvadoreans living abroad to send money home.



Under the legislation Bitcoin will become legal tender, alongside the US dollar within 90 days of the approval by Congress.



The new law means every business must accept Bitcoin as legal tender for goods or services, unless it is unable to provide the technology needed to process the transaction.



El Salvador's economy relies heavily on remittances, or money sent home from abroad, which make up around 20% of the country's gross domestic product (GDP)



More than two million Salvadoreans live outside the country, but continue to keep close ties with their place of birth, sending back more than $4bn (£2.9bn) each year.

World Bank rejects El Salvador request for Bitcoin help

Kathmandu: Most of the branch offices of banks and financial institutions in Kathmandu Valley are open from today.



Most of the bank's branch offices reopened on Tuesday after the government decided to extend the restrictions by one week.



According to Nepal Rastra Bank the banks have been instructed to open minimum branches by following the health security standards. The NRB, however, has not decided the number of branch offices to be opened.



Till Monday, the bank had been providing services only by opening limited branch offices. Most of the branch offices of insurance companies have also been open since Tuesday.



The Insurance Committee, the regulatory body of insurance companies, has also directed to provide services with a minimum number of employees.

Mostly BFIs branch office open from today

Kathmandu: All the seven provincial governments are set to unveil the budget for the fiscal year 2021/22 today. According to the Intergovernmental Financial Management Act, the budget has to be presented in the province assembly on June 15.



The central government has given four types of grants to seven provincial governments of Rs 103 billion. The provinces are getting about Rs 63 billion from revenue sharing.



Apart from this, there will be a savings budget of Rs 55 to 65 billion for more than one trillion rupees. Like last year, the expenditure situation of the provinces is low this year as well.



As of mid-April, all the seven provinces have not been able to spend even an average of 35 percent. Out of the budget of Rs 264 billion, only Rs 94 billion has been spent by mid-April. With an additional 25 percent budget spent in two months, the average expenditure of the provinces is estimated to be 60 percent.

All seven provincial govt announcing budget today

Kathmandu: Remittance inflows have increased by 19.2 percent to Rs.809.89 billion in the first 10 months of the current fiscal year against a decrease of 6.3 percent in the same period of the previous year. The net transfer has increased by 17.2 percent to Rs.903.77 billion in the review period. Such a transfer had decreased 6.9 percent in the same period of the previous year. According to the Nepal Rastra Bank (NRB), the number of Nepali workers (institutional and individual-new and legalized) taking approval for foreign employment decreased 60.3 percent in the review period. It had decreased by 2.7 percent in the same period of the previous year. The number of Nepali workers (Renew entry) taking approval for foreign employment has also decreased by 49.0 percent in the review period. It had decreased 24.6 percent in the same period of the previous year.

Remittances increase by 19.2 pc in last 10 months

Reuters: The Group of Seven rich nations will announce on Saturday a new global infrastructure plan as a response to China’s belt and road intiative, a senior official in U.S. President Joe Biden’s administration said.



The official, who spoke to reporters on condition of anonymity, said the United States would also push the other G7 leaders for "concrete action on forced labour" in China, and to include criticism of Beijing in their final communique



"This is not just about confronting or taking on China," the official said. "But until now we haven't offered a positive alternative that reflects our values, our standards and our way of doing business."



China’s Belt and Road Initiative (BRI) is a multi-trillion-dollar infrastructure scheme launched in 2013 by President Xi Jinping involving development and investment initiatives that would stretch from Asia to Europe and beyond.



More than 100 countries have signed agreements with China to cooperate in BRI projects like railways, ports, highways and other infrastructure.



According to a Refinitiv database, as of mid-last year, more than 2,600 projects at a cost of $3.7 trillion were linked to the initiative, although the Chinese foreign ministry said last June that about 20% of projects had been seriously affected by the COVID-19 pandemic.



In March, Biden said he had suggested to British Prime Minister Boris Johnson, who is hosting the three-day G7 leaders’ summit in southwest England, that democratic countries should develop their own rival scheme.



The U.S. official said until now, the West had failed to offer a positive alternative to the "lack of transparency, poor environmental and labour standards, and coercive approach" of the Chinese government that had left many countries worse off.



"So tomorrow we’ll be announcing ‘build back better for the world,’ an ambitious new global infrastructure initiative with our G7 partners that won’t just be an alternative to the B and I (Belt and Road)," the official said.



In talks, Biden will also press the other leaders to make clear that they believe forced labour practices were an affront to human dignity and "an egregious example of China’s unfair economic competition" to show that they were serious about defending human rights.



"We’re pushing on being specific on areas like Xinjiang where forced labour is taking place and where we have to express our values as a G7," the official said of the final communique to be issued at the end of the summit on Sunday,



There were no specifics on how the global infrastructure scheme would be funded. The plan would involve raising hundreds of billions in public and private money to help close a $40 trillion infrastructure gap in needy countries by 2035, the official said



The aim was to work with Congress to supplement existing development financing “with the hope that together with G7 partners, the private sector, and other stakeholders we soon are collectively catalyzing hundreds of billions of dollars in infrastructure investment for low and middle-income countries that need it”.

G7 to counter China’s belt and road with infrastructure project - senior US official

Kathmandu: The global economy is expected to expand 5.6 percent in 2021, the fastest post-recession pace in 80 years, largely on strong rebounds from a few major economies.



However, many emerging market and developing economies continue to struggle with the COVID-19 pandemic and its aftermath, the World Bank says in its June 2021 Global Economic Prospects.



Despite the recovery, global output will be about 2 percent below pre-pandemic projections by the end of this year. Per capita income losses will not be unwound by 2022 for about two-thirds of emerging market and developing economies.



Among low-income economies, where vaccination has lagged, the effects of the pandemic have reversed poverty reduction gains and aggravated insecurity and other long-standing challenges.



“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” said World Bank Group President David Malpass.



“Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability.”



Among major economies, U.S. growth is projected to reach 6.8 percent this year, reflecting large-scale fiscal support and the easing of pandemic restrictions.



Growth in other advanced economies is also firming, but to a lesser extent. Among emerging markets and developing economies, China is anticipated to rebound to 8.5 percent this year, reflecting the release of pent-up demand.



Emerging market and developing economies as a group are forecast to expand 6 percent this year, supported by higher demand and elevated commodity prices. However, the recovery in many countries is being held back by a resurgence of COVID-19 cases and lagging vaccination progress, as well as the withdrawal of policy support in some instances.



Excluding China, the rebound in this group of countries is anticipated to be a more modest 4.4 percent. The recovery among emerging market and developing economies is forecast to moderate to 4.7 percent in 2022.



Even so, gains in this group of economies are not sufficient to recoup losses experienced during the 2020 recession, and output in 2022 is expected to be 4.1 percent below pre-pandemic projections.



Per capita income in many emerging market and developing economies is also expected to remain below pre-pandemic levels, and losses are anticipated to worsen deprivations associated with health, education and living standards. Major drivers of growth had been expected to lose momentum even before the COVID-19 crisis, and the trend is likely to be amplified by the scarring effects of the pandemic.



Growth in low-income economies this year is anticipated to be the slowest in the past 20 years other than 2020, partly reflecting the very slow pace of vaccination.



Low-income economies are forecast to expand by 2.9 percent in 2021 before picking up to 4.7 percent in 2022. The group’s output level in 2022 is projected to be 4.9 percent lower than pre-pandemic projections.



An analytical section of the Global Economic Prospects report examines how lowering trade costs such as cumbersome logistics and border procedures could help bolster the recovery among emerging market and developing economies by facilitating trade.



Despite a decline over the past 15 years, trade costs remain almost one-half higher in these countries than in advanced economies, in large part due to higher shipping and logistics costs.



Efforts to streamline trade processes and clearance requirements, to enable better transport infrastructure and governance, encourage greater information sharing, and strengthen competition in domestic logistics, retail, and wholesale trade could yield considerable cost savings.



“Linkages through trade and global value chains have been a vital engine of economic advancement for developing economies and lifted many people out of poverty. However, at current trends, global trade growth is set to slow down over the next decade,” World Bank Group Vice President for Equitable Growth and Financial Institutions Indermit Gill said.



“As developing economies recover from the COVID-19 pandemic, cutting trade costs can create an environment conducive to re-engaging in global supply chains and reigniting trade growth.”



Another section of the report provides an analysis of the rebound in global inflation that has accompanied recovering economic activity. The 2020 global recession brought about the smallest inflation decline and the fastest subsequent inflation upturn of the last five global recessions.



While global inflation is likely to continue to rise over the remainder of this year, inflation is expected to remain within target ranges in most inflation-targeting countries.



In those emerging market and developing economies where inflation rises above target, a monetary policy response may not be warranted provided it is temporary and inflation expectations remain well-anchored.



“Higher global inflation may complicate the policy choices of emerging market and developing economies in coming months as some of these economies still rely on expansionary support measures to ensure a durable recovery,” World Bank Prospects Group Director Ayhan Kose said.



“Unless risks from record-high debt are addressed, these economies remain vulnerable to financial market stress should investor risk sentiment deteriorate as a result of inflation pressures in advanced economies.”



Rising food prices and accelerating aggregate inflation may also compound challenges associated with food insecurity in low-income countries.



Policymakers in these countries should ensure that rising inflation rates do not lead to a de-anchoring of inflation expectations and resist subsidies or price controls to avoid putting upward pressure on global food prices. Instead, policies focusing on scaling up social safety net programs, improving logistics and climate resilience of local food supply would be more helpful.

"Output to remain below pre-COVID trends despite robust rebound by US and China"

Kathmandu: The bodies of 35 Nepalis have been stranded in Malaysia due to the restrictions on international flights.



According to Nepal Embassy in Malaysia, the bodies of about 35 Nepalis have been stranded in Malaysia alone within a month of the government shutting down international flights to prevent corona infection.



According to the embassy, the number of Nepalis trying to return to Nepal after completing their home contracts and visas is also increasing.



Sixty-five Nepalis have been jailed in Malaysia for various reasons and are waiting for the day to return home.



Unlike last year, there is no situation of loss of employment in Malaysia. The company is arranging food and accommodation for those who are preparing to return home even after the contract expires.

Dead bodies of Nepali migrants stranded in Malaysia due to flight ban

Kathmandu: Nepal Oil Corporation has reduced the price of air turbine fuel (ATF) towards international sector. The airline companies had complained earlier saying that the competitiveness of the airlines operating from Nepal is low due to the high price of international ATF.



Accordingly, the decision has been taken after discussions between the Ministry of Culture, Tourism and Civil Aviation, Ministry of Industry, Commerce and Supplies, Nepal Oil Corporation and Civil Aviation Authority of Nepal.



The corporation has decided to reduce the ATF price by 20 percent with effect from 12 noon on Sunday.



Accordingly, the price of ATF has now dropped to USD 715 per kiloliter internationally. The corporation has decided to reduce the price by USD 178 per kiloliter.



With the decision of the Nepal Oil Corporation, the widebody fare of the Nepal Airlines Corporation has been reduced by 13 percent and the narrowbody fare by 15 percent, according to the Nepal Airlines Corporation.

NAC drops airfare after ATF price drops in international sector

Kathmandu: The government has decided to include health infrastructure in the government's national pride projects. This is the first time ever the health infrastructure will be recognized as a national pride project. The government is going to declare the Bir Hospital project under construction at Duwakota in Bhaktapur as a project of national pride in the coming fiscal year 2021/22. According to the Ministry of Finance, there is a plan to build a hospital with international standard facilities in Duwakot to operate the expanded services of Bir Hospital. The government has set a target to complete the project within the next three years. So far, there are a total of 25 projects under the national pride projects of the country. According to the Ministry of Finance, such projects are related to energy, roads, railways, irrigation, drinking water, tourism, and the forest sector.

Govt to include health infrastructure under national pride project

Kathmandu: The Supreme Court has issued an interim order not to stop online shopping and home delivery services.



A bench of Justices Sapana Pradhan Malla and Kumar Chudal on Monday issued an interim order not to stop the delivery of e-commerce services in the Kathmandu Valley.



Last year, the Kathmandu District Administration Office had issued the Criteria 2020 for home delivery of essential goods and services during the prohibition order.



Even after preparing such criteria, home delivery services were halted during this prohibitory order.

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