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The increase in the cost of doing business due to rising interest rates, the hike in cost of raw materials along with the decline in market demand have badly affected the operational efficiency of industries in the Sudurpaschim Province. As industries grapple with economic issues, their capacity utilization has declined in the first half of the current fiscal year. According to the latest report of the Nepal Rastra Bank (NRB), the average capacity utilization of industries in Sudurpaschim Province stood at 36.24 percent in the first half of FY 2022/23 compared to 40.3 percent during the same period of the last fiscal. The report titled ‘Provincial Economic Activities Report-Sudurpaschim Province’, states capacity utilization of the sugar industries was the highest while the rosin industries had the lowest at 3.91 percent. Industries such as wheat flour, bricks, mustard oil, and concrete had higher capacity utilization in the first half of the current fiscal year. However, the capacity utilization of industries producing items such as rosin, processed milk, soap, and rice remained sluggish during this period. “The capacity utilization of industries producing rosin remained poor due to the lack of workers and delay in the collection of raw materials,” states the NRB report. According to the report, the production of wheat flour, rosin, and bricks has decreased significantly in the first half of the current fiscal. Of the total workforce in the industries of the Sudurpaschim Province, 88.02 percent are male while 11.98 percent are female. The industries in the province have employed 20.99 percent of Indian citizens in their total workforce. Meanwhile, the disbursement of loans by banks and financial institutions (BFIs) to the industrial sector increased marginally in the first half of FY 2022/23. The BFIs’ loan disbursement to industries increased by 6.85 percent to Rs 29.14bn in the first half of the current fiscal year compared to a growth of 19.74 percent during the corresponding period of FY 2021/22. Of the total loans disbursed by the BFIs in the province, the share of the industrial loans is 18.17 percent. According to NRB, of the total loans, Kailali district has the highest share of 72.12 percent while Bajhang district has the lowest share of 0.33 percent. In the review period, the BFIs’ loans to electricity surged by 304.47 percent while lending to the agriculture sector declined by 11.03 percent. Of the total industrial loans, the share of the agriculture industry stands the highest at 34.31 percent, followed by the non-food industry (31.67 percent), the construction industry (20.76 percent), the metal industry (7.75 percent), and the electricity industry (4.75 percent). Disbursement of industrial loans (District wise)

Prime Minister Pushpa Kamal Dahal and General Secretary of Communist Party of Nepal (CPN) Netra Bikram Chand held a meeting on Thursday to discuss contemporary political issues. During the meeting held at the Prime Minister’s official residence in Baluwatar this morning, the two discussed the atmosphere in the aftermath of the declaration of Socialist Front of four leftist parties including the CPN on June 19 and the country's contemporary political affairs, according to the Prime Minister's Secretariat. The Prime Minister's private secretary Ganga Dahal said that the two leaders exchanged views focusing on the effective presence of the Front, further institutionalizing the accomplishments of Maoist movement and the possibility of unification between the parties: CPN (Maoist Centre) and the CPN.    

Pokhara International Airport has its first international flight with the A319 aircraft of Sichuan Airlines landing at the airport on Wednesday morning. After it was formally inaugurated on 1 Jan 2023, by Prime Minister Pushpa Kamal Dahal, it is the first time that the airport received an international flight. The plane carrying some Nepali and Chinese officials and Chinese players to take part in the Nepal-China Friendship Dragon Boat Race Festival to be organized in Pokhara landed at 9:06 am on Wednesday morning, according to the Civil Aviation Authority of Nepal (CAAN). The plane was welcomed with a water cannon salute. Sichuan Airlines conducted a chartered flight from Chengdu of Sichuan Province to Pokhara. The delay in conducting international flights and the report about its infeasibility to land narrow-body planes such as Airbus A320 and A319 in their full load capacity raised questions about the massive investment to build this airport. The project was built by taking $215.96m in loans from the China Exim Bank. The landing of A319 aircraft with 70 passengers and cargo loads at Pokhara International Airport showed that the airport is suitable for landing the type of aircraft the airport was supposed to accommodate,” said a senior official of CAAN. “The landing of the chartered flight also confirmed that equipment installed in the airport is in good condition and the geography of Pokhara can accommodate the jets that we envisioned.” Earlier media reports suggested that the airport has a payload issue as planes like Airbus A320 and A319 could not land there at their full capacity. Airports have load restrictions determined by obstacles, runway length, temperature, quality, and other factors. Load restrictions contribute to the rise in the operating cost of airlines. The first successful landing of the aircraft of Sichuan Airlines has not yet erased the doubt about the commercial viability to operate flights from and to this airport which is surrounded by high hills. Other international airlines are yet to come up with their plan to operate international flights from and to this airport. Even the state-owned Nepal Airlines is yet to announce a plan to operate its international flights from Pokhara. After the landing of a plane run by Sichuan Airlines, Ganesh Prasad Timilsina, Chairperson of National Assembly said that he, during his recent China visit, had insisted that the Chinese side start the first international flight in this airport as it is the Chinese-aided project. Timilsina stressed the need for regular flights to and from this airport while pointing out that operating flights should also be commercially viable. “All the stakeholders should work together to ensure regular international flights,” he said, adding that the federal government, Pokhara Metropolitan City, and tourism entrepreneurs should also make common efforts for the purpose. CAAN has not yet confirmed when the regular international flights will be conducted to and from this airport. In a statement posted on social media, the CAAN said, “Discussions with the relevant parties are underway to establish regular flights in the future.” A senior official of CAAN said that regular fights could start within a few months. “We hope to see increased regular flights from and to the Pokhara International Airport in September and October when foreign tourists visit Nepal in large numbers,” the official said. “ Nepal Airlines and Himalaya Airlines are also showing interest in conducting international flights.”

The Nepal Association of Tour and Travel Agents (NATTA) has drawn the attention of the finance minister towards the air tickets becoming expensive due to the imposition of VAT on airfare by the government. A NATTA delegation led by its president Ramesh Thapa met Finance Minister Prakash Saaran Mahat on Wednesday and called on the government to withdraw its decision to levy value added tax (VAT) on air tickets, citing that imposition of VAT on airfare through the budget for fiscal year 2023-24 has made the air tickets costlier. "As both the domestic and international airfare in Nepal are already expensive at present, the airfare would become exorbitantly expensive with the addition of VAT in the present situation, and there is possibility of tourist arrivals falling down and the prospective foreign tourists opting for traveling to airports in Bagdogara, Gorakhpur among other airports in India due to their proximity to the Nepal border and the high airfare in Nepal," Thapa said. He argued that the decision of imposing VAT on airfare would have a serious impact on the government's goal of bringing more than a million tourists to Nepal in the upcoming fiscal year. NATTA said imposition of VAT only in Nepal would make the air tickets issued by Nepali travel agencies more expensive while it would be cheaper booking tickets online and in foreign countries. This will impel foreign tourists to book air tickets from foreign countries, resulting in loss of foreign currency earning and an increased risk of the government losing the tax it has been getting from the travel agencies and the loss of employment provided by the latter. NATTA has also called for a change in the provision of the Nepali citizen having to purchase a package tour from the foreign currency facility that one gets while going on a foreign tour. In the meeting, Finance Minister Mahat expressed the commitment that the government would take measures so that the tourism entrepreneurs would not face problems for the development of the tourism sector in Nepal.

Today's ICC Cricket World Cup Qualifier match between Nepal and West Indies at 12:45 pm is crucial for Nepal to keep their chances alive in the tournament.  Nepal lost their first game against Zimbabwe but managed to win their second game against the USA. They currently hold the third position in Group A with two points, while Zimbabwe is leading the group with two wins (four points). West Indies, with one win, is in the second position, ahead of Nepal in terms of net run rate. The Windies have played only one game so far. To stay in contention, Nepal must win this match against the West Indies. A victory would push them to the second position in the group, while a loss would keep them in third place but help West Indies advance. After this match, Nepal will have only one game left to play. In their previous match against the USA, Nepal’s medium pacer Karan KC performed exceptionally well, taking four wickets for just 11 runs in a seven-over spell. This outstanding bowling display limited the USA to a total of 207 runs. Nepal comfortably chased down the target with Bhim Sharki’s unbeaten 77, securing a six-wicket victory. Top two teams from Zimbabwe qualifiers will play the ICC World Cup that is set to take place in India, in October 2023.

At least 31 people are dead and seven injured in the Chinese city of Yinchuan, in northwest Ningxia region, after a gas explosion at a barbecue restaurant Wednesday night, according to state media, CNN reported.

The explosion was caused by a leak of a liquified gas tank inside the restaurant, and took place around 8:40 p.m., according to state broadcaster CCTV.

Among the seven injured, one person is still in critical condition. The other six are being treated in the hospital for minor injuries, burns and glass cuts.

Local fire authorities sent 20 vehicles and more than 100 personnel to the scene, with search and rescue operations lasting until 4 a.m. Thursday morning, according to state media.

Photos posted by state media show the damaged building, with blackened exteriors, debris on the ground and smoke in the air. Firefighters are seen entering the second floor on a ladder and lifting people out on stretchers, according to CNN.

Chinese leader Xi Jinping called the explosion “heartbreaking,” and said it was a “profound lesson.” He has issued instructions to authorities on the scene, requiring “all efforts” to treat the injured, strengthen safety supervision and protect residents’ safety, according to CCTV.

Interviews by police and firefighters on the scene established that two restaurant staffers had smelled gas about an hour before the explosion, said the Yinchuan government in a statement posted online on Thursday.

The two staffers found the valve of the gas tank had broken, and sent another staff member to buy a new one. The explosion took place as the valve was being replaced.

Police have detained nine people and frozen their assets, including the restaurant’s manager, employees and shareholders, according to state media China Youth Daily, CNN reported.

The restaurant is located on a busy street, state media reported. The incident came just before China began its three-day national public holiday, from Thursday to Saturday, marking the Dragon Boat Festival.

The country has been rocked by a number of safety incidents this year. A coal mine collapse in Inner Mongolia in February left 53 dead; then in April, the deadliest fire to hit Beijing in two decades killed 29 people in a hospital.

Non-life insurance companies have resumed issuing agri-insurance policies after the government promised to release the remaining portion of agricultural and livestock insurance subsidies. The companies had suspended the agri-insurance from the second week of May after the government failed to release the subsidy amount. The Ministry of Agriculture and Livestock Development and the Nepal Insurers' Association (NIA), the umbrella organization of non-life insurance companies in the country, reached an agreement on Tuesday with the former agreeing to release the subsidy amount immediately. During a meeting with Agriculture Minister Beduram Bhusal on Tuesday, the ministry urged the association to resume the agri-insurance business. Chunky Chhetry, President of NIA said that insurance companies have resumed the agri-insurance business from Wednesday. “We have started issuing new policies after the government's commitment to release the subsidy amount,” said Chhetry. The government has an outstanding amount of Rs 2.94bn to be paid in subsidies. Of which, the Agriculture Ministry released Rs 740m in the first week of June. However, the insurance companies were adamant that they would not restart agri-insurance until the dues are not released. Now, the government has promised to release Rs 400m in the next few days. “The government has promised to pay Rs 400m in the next few days and the remaining dues by mid-July,” said Chhetry. The government has been providing an 80 percent subsidy on agricultural insurance premiums. In a bid to cover the damages and losses to agriculture, the government introduced the Agriculture and Livestock Insurance Program in the fiscal year 2013/2014. In the initial phase, the government provided a 50 percent subsidy on the premium of the insurance. The premium was later increased to 75 percent, and currently, it is 80 percent. Now, the farmers have to pay Rs 20 out of Rs 100 premium while insuring their crops and livestock. The insurance companies will get the rest Rs 80 from the government. The statistics of NIA show the business of agriculture insurance has increased by 417.55 percent in the first half of FY 2022/23. The non-life insurance companies have collected Rs 1.09 billion in insurance premiums from agriculture insurance in the first six months of the current fiscal compared to Rs 211.13m during the same period of the last fiscal year. The insurers have sold 82,746 agricultural insurance policies in the current fiscal year.

The monsoon weather system has its influence in the eastern and central parts of the country at present, the Department of Hydrology and Meteorology said. Similarly, local wind and Westerly wind have their partial impact. The low-pressure system that has developed over Uttar Pradesh in India also has its influence in the western Nepal, the Department stated. The weather is generally cloudy in Koshi and Bagmati Provinces as well as the Madhesh, Lumbini and Sudurpaschim Provinces at present. It is partly to generally cloudy in the rest of the regions of the country with moderate rain accompanied by lightning at a few places, said meteorologist Sanjeev Adhikari. He said there is a possibility of rainfall in some places of Koshi, Bagmati and Gandaki Provinces today. The Meteorological Forecasting Division said there are chances of heavy rainfall tonight compared to the daytime. The weather bulletin issued by the Division stated that light rainfall is forecast in the western parts of the country as well today. It said the monsoon system has its impact in the eastern and central parts of the country at present while the local and Westerly winds have their impact in the rest of the parts.