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Thanks to the proliferation of banks and financial institutions (BFIs) in the country, the use of formal channels for financial services has increased tremendously over the last decade. The new report titled "Nepal Financial Inclusion Report 2023" published jointly by International Finance Corporation (IFC) and United Nations Capital Development Fund (UNCDF) shows 90 percent of Nepali adults use formal financial services. With the countrywide expansion of BFIs as well as microfinance institutions, the use of informal channels for financial transactions has gone down significantly. According to the report, only 4 percent of adults use informal channels. The report says the percentage of adults who use formal financial services (from banks and other formal providers) has increased from 61 percent in 2014 to 90 percent in 2022. Of them, 81 percent use banking services while 9 percent use other formal financial services. In 2014, 40 percent used banks, and 21 percent used other formal channels. "The uptake of overall formal financial services has been largely driven by both banking and insurance sector service expansion across the country under the new federal structure, and the uptake of digital financial services amidst the growing mobile and internet penetration," reads the report. The usage of formal financial services has significantly risen not only for the urban population but also for the rural population as well. In rural areas, the use of formal financial services increased to 88 percent in 2022 from 58 percent in 2014. Of the rural population having access to formal financial services, 77 percent use banking services while 11 percent use other formal financial services. The report, however, said the urban/rural divide still persists as only 50 percent of adults from rural areas have an account at a financial institution, whereas 60 percent of urban adults have bank accounts. The concentrated and mandatory branch expansion of bank branches in all the local levels including the ones in the rural areas under the new federal structure, distribution of social benefits via bank accounts, and cohesive efforts from both the local level governments and the private sector to drive financial services are some of the determining factors increasing the access of formal financial services in the rural areas. According to the report, the gender gap has also significantly narrowed. In 2022, 89 percent of women and 90 percent of men have access to formal financial services (bank and other formal), which was only 57 percent and 64 percent respectively in 2014. However, there is still a gap in the usage of banking services between male and female adults, with 83 percent of men using banking services compared to 79 percent of women. In terms of account ownership, 50 percent of women and 56 percent of men have an account at a financial institution. The growth and the narrowing of the gender gap can be primarily attributed to gender-balanced regulations, financial inclusion drive by all three tiers of governments, i.e., local, provincial, and federal governments, as well as government-supported access programs such as concessional loans targeted towards women. Access to formal financial services is highest in Gandaki Province at 96 percent, followed by Bagmati Province at 91 percent. Province 1 and Karnali Province have the lowest usage with 87 percent. Gandaki Province has the highest percentage of adults with access to formal savings at 73 percent followed by Sudurpaschim (69 percent) and Bagmati Province (66 percent). In Gandaki Province, 42 percent have bank savings while 31 percent save at other formal institutions. In terms of payments, Gandaki Province (85 percent) has the highest usage of banking channels for payment services followed by Sudurpaschim Province (83 percent) and Bagmati Province (77 percent) respectively.

An arrest warrant has been issued against Niraj Rai, son of Indrajit Rai, for his alleged involvement in sending Nepalis to the United States in the guise of Bhutanese refugees. Sita Ram Rijal, spokesperson at the District Police Range, Kathmandu, confirmed that an arrest warrant has been issued against Niraj. “As Rai’s son Niraj was also found involved in sending the Nepalis to the United States by issuing fake documents of refugees, the Kathmandu District Court issued the arrest warrant,” he said. He said that Niraj is on the run. Rai, security advisor of former Home Minister Ram Bahadur Thapa, was arrested from Sunakothi, Lalitpur on Tuesday morning. Earlier, police had apprehended Keshav Dulal, Tanka Kumar Gurung, Sanu Bhattarai and Sagar Rai involved in the same incident.  

Riding on the half-century of Gulsan Jha, hosts Nepal defeated the UAE by seven wickets in the final match of the ACC Men’s Premier Cup on Tuesday. With the win, Nepal have been qualified for the Asia Cup to be held in Pakistan in September. Winning the toss, Nepal invited the UAE to bat first. The UAE scored 117 runs losing all the wickets in 33.1 overs in the match played at the TU Ground in Kirtipur. Set 118 to win, Nepal achieved the target in 30. 3 overs at the cost of just three wickets. Jha scored unbeaten 67 runs off 84 balls hitting three boundaries and six sixes. Similarly, Bhim Sarki scored unbeaten 36 runs with four boundaries. Rohan Mustafa of the UAE took two wickets. Likewise, Aayan Afzal Khan claimed one wicket. Lalit Rajbasni claimed four wickets for Nepal. Similarly, Karan KC and Sandeep Lamichhane took two wickets each and Gaulsan Jha and Sompal Kami claimed one wicket each. Meanwhile, Prime Minister Pushpa Kamal Dahal congratulated the Nepali cricket team for winning the title of ACC Men's Premier Cup.  

While there has been improvement in the minimum wage compared to the past, still 15.30 percent of the workers still do not receive the prescribed minimum wage. The Labor Audit carried out by the General Federation of Nepalese Trade Unions (Gefont) shows the issue of minimum wage still persists but compared to 2018, the number of workers who do not get the minimum wage has decreased. As per the Gefont Labor Audit, the trend of hiring trainee workers by industrial establishments is increasing. "Industrial establishments have been using 21 percent of trainee workers but they are not classified as the workers. This shows that a new form of labor exploitation is developing with more use of trainee workers," reads the report. Of the 145 industrial establishments included in the labor audit, 65 percent are registered at the contribution-based Social Security Fund. However, only 56 percent of them have been depositing money from their workers in the fund. The report also shows a rise in the number of Indian and other foreign workers in Nepal. According to the report, around 20 percent of industrial establishments have employed Indian and foreign workers. "Of them, 80 percent have not obtained official labor permits to employ foreign workers," said the report. When employing foreign nationals, a labor permit must be obtained from the Department of Labor and Occupational Safety. Even when Indian workers, who do not require labor permits to work in Nepal, are hired, they must be documented in the labor department. The report states that the companies did not follow the said policy. According to the report, the number of industrial establishments paying regular salaries has declined. Only 70.5 percent of industrial establishments are paying salaries within one month in 2022 compared to 83 percent in 2018. The report says the employers have not paid much attention to the medical insurance and accident insurance of their workers. According to the Labor Act, the employer has to provide medical treatment insurance of Rs 100,000 and accident insurance of Rs 700,000 for each worker. Of the industrial establishments included in the Labor Audit, only 44.75 percent of the industries have provided medical treatment insurance for workers and 40.45 percent have provided workers' accident insurance. While more industries are employing workers by signing formal labor contracts, the trend of using workers without labor contracts still continues. According to the report, 69.93 percent of establishments have labor contracts with workers. Only 55.93 percent of the companies used to employ workers through labor contracts in 2018. According to Gefont Vice President Ramesh Badal, the audit has highlighted that the overall implementation aspect of the service facilities provided to the workers as per the Labor Act is weak. "Workers have received minimum wages in the industries where there is a labor union," said Badal, adding, "Still 15.30 percent have not received the minimum wage which is sad."

Police have arrested Indrajit Rai, security advisor of former Home Minister Ram Bahadur Thapa, for his alleged involvement in defrauding people of millions of rupees on the pretext of sending them to the United States as Bhutanese refugees. Police spokesperson Kuber Kadayat said that Rai was apprehended from Sunakothi of Lalitpur on Tuesday. Police had been searching for Rai after the Kathmandu District Court issued an arrest warrant against him a few days ago. He said that Rai was nabbed after he was found involved in duping people on the pretext of sending them to United States as Bhutanese refugees. Earlier, police had detained Keshav Dulal, Tanka Kumar Gurung, Sanu Bhattarai and Sagar Rai involved in the same incident. Police said that they are looking into the case.

The price of gold has dropped by Rs 200 per tola in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 108, 800 per tola today. The yellow metal was traded at Rs 109, 000 per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 108, 300 per tola. It was traded at Rs 108, 500. Similarly, the silver is being traded at Rs 1,405 per tola today.

Annapurna Post daily, the flagship publication of Annapurna Media Network (AMN), completed 21 years of its publication on Monday. The Nepali daily has been in publication continuously since May 03, 2002. A program was organized at the Tinkune-based Corporate Tower to celebrate the day. On the occasion, Captain Rameshwar Thapa, Chairman of the Annapurna Media Network, presented certificates of appreciation to the journalists and employees of Annapurna Post, “Democracy and nationalism are our religions. The Annapurna has been raising political, economic and social issues in an objective manner,” he said. Referring to the fact the Covid-19 pandemic affected the country and media houses as well, Chairman Thapa said, “Your indomitable courage, commitment and professional integrity are incomparable.” Speaking at the program, the Group CEO of Annapurna Media Network, Sanat Neupane, said that the far-sighted vision of the management leadership and creative editorial leadership have helped Annapurna Post take this height. Editor-in-chief Akhanda Bhandari and Director of Annapurna Media Network Sachan Thapa among others were present in the program.

The Office of the Auditor General (OAG) has stated that it was unable to find the records of entry and use of Covid-19 vaccines and related materials worth Rs 17.08bn that the Ministry of Health and Population had received in the fiscal year 2021/22. The medical consignment was received as assistance from COVAX, the Government of Japan, UNICEF, and Gavi, among other donors. In its report, the OAG has noted that the Health Ministry spent Rs 7.89m received from different donor agencies for training and consultation services, but has failed to include the expenses in its budgetary system. It is mandatory for public offices to make all their spendings through the budgetary system. The OAG report has also highlighted huge financial lapses and discrepancies in other areas of the country’s health sector. It has, for example, mentioned Bir Hospital’s failure to start the construction of an international standard health facility in Duwakot, Bhaktapur, despite the budget allocation of Rs 500m in the fiscal year 2021/22. The proposed hospital is said to be completed within three years, but the construction process has yet to commence. Similarly, the National Public Health Laboratory failed to spend Rs 12.64m allocated to it for the construction of a laboratory building, the OAG report states. Furthermore, the government's plan to build basic hospitals in all 753 local units has also stalled. Although 655 local units were permitted to construct basic hospitals, construction is underway in only 414 local units, while work has not begun in 241 units. The OAG report says that the government spent Rs 6.96bn on building basic hospitals in the fiscal year 2021/22. In the fiscal 2021/22, the Health Ministry allocated Rs 3.12bn to procure equipment such as ICU, PICU, HDU, ventilator, and oxygen plant for federal, provincial, and municipal hospitals, community hospitals, and medical colleges. But while the ministry spent Rs 3.10bn on these equipment, it is unclear whether it has been put to use. The OAG has instructed the ministry to prepare a report on the use of such equipment and maintain an integrated data system. It has also directed the ministry to keep up-to-date records of the equipment procured for Covid-19 isolation and quarantine centers. According to the OAG report, the Health Ministry procured syringes for immunization at Rs 6.74 per unit in the fiscal year 2021/22, compared to Rs 4.41 in the fiscal year 2020/21. Interestingly, the ministry had estimated the cost at Rs 8.17 per syringe in the fiscal year 2021/22, resulting in an additional financial burden of Rs 53.35m. The report also raises the issue of several government hospitals and medical bodies violating the established norms while preparing cost estimates for procuring various equipment It says BP Koirala Institute of Health Sciences, Bharatpur Hospital, and Health Insurance Board violated public procurement laws by eschewing the competitive bidding process to procure furniture and equipment worth Rs 14.37m, Rs 28.78m, and Rs 4.8m, respectively. In the fiscal year 2021/22, the OAG report further states, the Health Ministry provided grants worth Rs 449.5m to 38 community hospitals and organizations without completing the required procedures outlined in Section 4 of the Guidelines Related to Subsidy for Community Hospitals, 2016. The OAG report also states that 7.6 percent of the rotavirus vaccine and 79.3 percent of the BCG vaccines had expired due to the lack of proper management of vaccination programs. Similarly, nearly half of the VTM, RNA Extraction, Automated RNA Extraction, and Antigen kits, with a combined worth of Rs  Rs 298.12m, are set to expire without being used. Four million doses of China-donated Sinovac Covid-19 vaccine are also set to expire in 10 months. The government has not used the Sinovac vaccine, citing a lack of technical tests. The OAG has also identified a number of issues with the Department of Health Services' procurement and payment practices. Specifically, the department has released full payments to suppliers before the equipment installation and staff training, which violates the procurement contract. The OAG has instructed the department to ensure that suppliers abide by the procurement act and take action against officials who release payments before the work is completed. The department has released payments of Rs 445m to four suppliers for various equipment, including automated biochemistry analyzers, hematology machines, an ERCP machine, portable X-ray machines, and hemodialysis machines. The OAG also noted that suppliers took more than eight months to supply and install 50 sets of ICU ventilators that were urgently needed at various government hospitals. In addition, the OAG report says, the department has been procuring medicines using money received from the Gavi Fund through UNICEF, which goes against the practice of making spending through the budgetary system. According to the report, the Department of Drug Administration (DDA) has not been able to perform its monitoring responsibility effectively. The DDA monitored only 3,663 out of 33,474 pharmacies, and only 72 out of 187 drug producers. The OAG has also raised the issue of DDA’s failure to properly manage the medical waste and expired medicines, which could pose a significant risk to public health. The OAG has also pointed out the failure of the National Public Health Laboratory to procure and install 35 pathological test equipment despite receiving the budget for the same. Furthermore, the OAG has directed the National Tuberculosis Center to make effective use of equipment and infrastructure after discovering that the center was not utilizing a culture machine costing Rs 7m, NK analyzer costing Rs 2.25m, autoclave costing Rs 800,000, and centrifuge costing Rs 300,000. Similarly, the OAG report states that the National Academy of Medical Sciences (NAMS) has been neglecting the upkeep and maintenance of medical equipment. The report states that seven ventilators, one USG equipment, one patient monitor, eight Hamilton ventilators, and two CareFusion ventilators are in need of repair. The lack of functioning equipment has adversely affected the hospital's service delivery, the report notes. The OAG has also directed NAMS to expand its pharmacy to reduce the waiting time for patients to get medicines. The report reveals that NAMS has been unable to install a CT simulator and Thermotherapy machine for cancer treatment, even four years after procurement. NAMS has also been called out for disbursing Rs 31.77m as medical expenses to its staff without verifying procurement bills. The OAG has instructed NAMS to recover the amount. The OAG report also states that the construction of a 400-bed neonatal building, a 300-bed cardiac center, and a 200-bed oncology center at the BP Koirala Institute of Health Sciences (BPKIHS) remains incomplete, even five years after the contracts were awarded. According to the report, the administration of BPKIHS released Rs 32.21m as cost variation of the neonatal building without approving the variation. The OAG has instructed BPKIHS to recover the amount from the contractor. The building, which was supposed to be completed in three years, still remains incomplete. Furthermore, the decision to terminate the bidding process for the procurement of dental materials has cost BPKIHS an additional Rs 5bn. The institute awarded the procurement contract to the only bidder at a cost of Rs 19.97m. However, in the previous bidding, one of the bidders had quoted around Rs 14.92m for the same tender. The OAG also found discrepancies in the preparation of cost estimation for procurement. In addition, the report revealed that Paropakar Maternity and Women's Hospital has been referring patients to private hospitals and diagnostic centers insteading of repairing its equipment. For instance, the hospital referred 4,200 patients to other hospitals for MRI services in the fiscal year 2020/21. It has affected service seekers as they are forced to pay as much as Rs 3,000 for MRI which would cost only Rs 1,000 at the maternity hospital.