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Finance Minister Dr Prakash Saran Mahat has urged Indian investors to spur investment in Nepal with confidence as Nepal is a fertile land for investment and returns perspectives.

In his address to a program hosted by the Gujarat Chamber of Commerce of India in Gujarat on Tuesday, Finance Minister Dr Mahat called for the Indian investors to flow investment in Nepal, informed the Ministry of Finance.

He said Nepal has recently signed an agreement to export 10,000 MW electricity to India which would resultantly incentivize hydropower production in Nepal and also open up several avenues for the industries to supply power in higher quantities.

He further said that Nepal is in a situation to ensure hydro power supply all time at a cheaper price and the goods produced in Nepal also get easy access in India which he said would enable an environment for investment promotion.

Finance Minister Dr Mahat urged the Indian business community to confidently make investment as there is no trouble at policy level in returning the yields to their home country.

Dr Mahat went on to say that there are abundant opportunities for investment in agriculture enterprises, information technology and tourism besides energy production.

The advancement of the information technology sector is gaining momentum in Nepal, Dr Mahat said, adding availability of cheaper human resources can promote competitive market capacity.

Also speaking on the occasion, senior Vice-Chairperson of Gujarat Chamber of Commerce and Industry Sandeep Engineer said the industrialists and entrepreneurs of Gujarat are interested to expand investment and operate business in Nepal and urged the Nepal government to facilitate the process for the same.

At the program, officials of the Finance Ministry and New Delhi-based Nepali Embassy briefed the Indian business community about the scope and potentials of investment in Nepal.

After the general elections held in November last year, the CPN-UML and CPN (Maoist Center) came together to form a coalition government. But the partnership was short-lived, as the two parties fell out over the presidential nominee. Prime Minister Pushpa Kamal Dahal formed a new coalition with the Nepali Congress, consigning the UML to the opposition benches. On Tuesday, UML Chairman KP Sharma Oli spoke in length with Kamal Dev Bhattarai, Akhanda Bhandari and Sambhu Kattel of Annapurna Media Network. Excerpts:

Is the CPN-UML playing an effective role as an opposition?

The CPN-UML is the only party which has a clear vision and mission of nation-building. There has been sufficient discussion on ‘Prosperous Nepal, Happy Nepali’ which is and should be the destination of Nepal. The UML has always been clear about this destination and the route to get there. We are also the only party which has a clear position on internal issues such as political, economic and social policies, as well as matters relating to maintaining the external relations. Keeping the welfare of the people and nation at the forefront, we will and have been raising these issues in parliament and streets. So, from this point of view, our role as an opposition remains effective and impactful. We are also playing a vital role to make the government accountable on national issues.

What is your take regarding the government’s anti-corruption initiative?

Selective opening of some corruption files is nothing but a political stunt. The government’s corruption drive is aimed at terrorizing and attacking political opponents. This is not a genuine anti-corruption initiative. The only positive thing is that if more corruption files are opened, there will be public pressure to investigate all corruption scandals, which means those who have evaded justice because of power and position will be prosecuted.   

You have raised the issue of alleged corruption that took place in the Maoist cantonments following the 2006 peace agreement,  could you please elaborate on it?

There have been financial misappropriations in the cantonment. Initially, the Maoist claimed that they had around 34,000 combatants, but the United Nations Mission in Nepal verified only 19,000. Approximately 1,300 combatants were integrated into the national army. But in the initial days, the Maoist leadership took the allowance for all the combatants they claimed they had. Today, the Maoist party-led government is talking about probing corruption scandals, but it has shown any initiative to investigate the corruption that took place in the management of Maoist cantonments. 

When you were in the government, you formed a panel to investigate the Lalita Niswas land grab case, but you didn’t initiate any probe into alleged cantonment corruption. Why?

I was not in a position of taking such a decision from the Cabinet at the time. Yes, I was the prime minister but the party [the erstwhile Nepal Communist Party (NCP) was, in a way, run by the Maoist factions. Later, they left the party.

Is there a chance of the case being investigated in the coming days?

The key factor is public opinion. What will the public say? The lone effort from my party is insufficient. But we believe that there should be impartial investigations into all corruption cases. There shouldn’t be a selective approach like today. Also, I would like to emphasize that it was my government that had started the investigation into Lalita Niwas land grab case.

You oppose Maoist Chair Dahal now, but you and your party did support him as a prime minister.

I took such a decision in order to correct the devastating course of national politics, not the course of our party. But the Maoists did not feel comfortable collaborating with us. So, they decided to part ways with the UML.

Do you think the current corruption investigation is aimed at the main opposition party?

Yes, it is targeted at us, but it will go in vain. Once again, I would like to stress that whoever is involved in corruption must be investigated. 

Let’s talk about the intra-party issue. You introduced the 70 years age limit for the party leader through statutory changes, which recently omitted. What is the reason?  

The provision was omitted because the party deemed it unnecessary. No other parties have such a provision, but the UML decided to put it to the test. We wanted to see whether it could be useful in our party’s context. We removed the age limit after listening to the voice of our colleagues. I can assure you that the decision has not caused any damage to the party. 

But there are talks that by removing the age limit, you want to stay in party leadership for an indefinite period.

I am always seeking an exit from the main leadership of the party. But if some individuals think that they would feel more comfortable had I not been the chairman of the UML, that is a different issue entirely. There is no need to comment on it because it was I who had introduced the age limit provision and it was removed as requested by the party colleagues.

Are there any chances of Bam Dev Gautam returning to the UML?  What position is he likely to get?

We should not focus on the issue of position. Everyone, everywhere is seeking a position and money, this is spoiling the environment. People should be free from money and position.

How do you see the emergence of new parties like the Rastriya Swatantra Party?

The people who are in the party leadership do not have political backgrounds. They are new to politics, without old people as members. So they are picking young people as parliamentarians and in other party departments. They are yet to be tested and their ideology is unclear. 

Do you think new parties pose a challenge to old parties like the UML?  

I don’t consider the new parties as a challenge. They may win some seats, but they are yet to have a robust party structure. They may form committees from the center right down to the grassroots level, but it won’t be a big deal. It is just a process of forming a party. They are criticizing the traditional political parties and their leaders now, but they don’t have anything that they can call it an accomplishment. They have no history and no ideology. But that is not to say that our party is intolerant towards new parties. 

After the election,the UML launched a grassroots campaign to rally supporters. How effectively was the mission, and is it true that the party members have gone down?

It is just a rumor spread by our detractors. The impact of mission grassroots has been very effective, and this will reflect in the result of 2027 general elections. 

You took the leadership to issue a new political map of Nepal by incorporating the disputed territories of Kalapani, Lipulek and Limiyadhura, but there has not been any progress in talks with India. What is your take on it?

We can get our land if we move ahead with substantive talks. The boundary issue should not be blown up unnecessarily and out of proportion by making it a matter of victory and defeat.

Akhanda Bharat and Greater Nepal have found prominence in recent times, how do you see it?

We should not engage in such sentimental and short-lived populist agenda. It will just increase tensions.

How do you rate the performance of the present government in maintaining international relations?   

The government has failed to conduct its foreign policy, there is a mess and there is imbalance. This government is just signing documents prepared elsewhere. We should always raise genuine issues including that of boundaries. 

Of late, there are debates that Nepal should abandon its non-alignment policy. What is your view on this?

This is an irresponsible idea. People who are saying such a thing do not understand Nepal’s geopolitics and are unaware about Nepal’s comprehensive welfare. We should remain neutral and we should not join any military blocs. 

The Nepal Stock Exchange (NEPSE) gained 9.91 points to close at 2,154.07 points on Tuesday.

Similarly, the sensitive index surged by 3.04 points to close at 407. 13 points.

A total of 8,676,438-unit shares of 255 companies were traded for Rs 3. 54 billion.

Meanwhile, BPW Laghubitta Bittiya Sanstha Limited was the top gainer today, with its price surging by 10. 00 percent. Likewise, Sanima Large Cap Fund was the top loser as its price fell by 5.14 percent.

At the end of the day, total market capitalization stood at Rs 3. 16 trillion.  

With the government struggling to strike a balance between income and expenditure throughout the year, the fiscal year 2022/23 turned out to be a disappointing one. 

The restriction on imports that stayed for the first six months of the last fiscal year badly hit the government’s income with revenue collection turning negative for the first time in the last 55 years. The government’s other two sources of income—foreign loans and grants—also remain below the target.

The revenue collection at the end of the fiscal year was even below the revised target. Initially, the government aimed to raise Rs 1403.13bn in revenue which was lowered to Rs 1180bn on May 29. However, the actual revenue collection stood at Rs 957.15bn, which is 68.21 percent of the actual target.

The deficit in revenue collection against the initial target is Rs 445.99bn. Never in history has there been such a huge gap between the initial target and the actual collection. In fact, the Department of Customs (DoC) and the Inland Revenue Department, the two major revenue collectors of the federal government, failed to achieve their target. 

The slowdown in economic activities, the decline in imports, and poor capital expenditure have contributed to poor revenue collection this year.

The Financial Comptroller General’s Office (FCGO) data shows the government’s total expenditure in the last fiscal year stood at Rs 1429.56bn.

According to Finance Ministry officials, the budget deficit exceeded Rs 500bn by the end of the fiscal year, and the government treasury account is negative by Rs 1.93bn. 

The budget deficit increased as revenue could not be collected as targeted while liabilities increased in areas of salary, pension, social security allowances, and domestic and external debts among others. 

Despite huge pressure on resources, the growth rate of the government’s expenditure (budget spending) rose to a five-year high in the fiscal year 2022/23. The budget expenditure increased by 10 percent compared to the last fiscal year.

The government, which has been able to spend about 80 percent of the total budget allocation, has succeeded in spending 85 percent of the recurrent expenditure, 61 percent of capital expenditure, and 83 percent of the financing budget.

The capital expenditure increased by eight percent in the last fiscal year. The government spent Rs 233.69bn in FY 2022/23, up from Rs 216.37bn in FY 2021/22. However, most of the capital expenditure happened in the last two months of the fiscal year. Economists term this late surge in capital spending ‘a misuse of state resources’.  The report of the Office of the Auditor General (OAG) also shows that 40 percent of the total capital expenditure takes place in Ashad (mid-June to mid-July), the last month of the fiscal year.

This pattern of spending increases the possibility of sub-standard quality of capital projects and an increase in recurrent spending, in operations and maintenance costs, for the coming years, they said.  “This also shows that the government is not maintaining fiscal discipline,” said economist Chandra Mani Adhikari. 

However, the expenditure under the financing heading that is used for debt servicing, surged by a whopping 61 percent. The government spent Rs 190bn in financing in the last fiscal year. 

With revenue collection declining by 10.37 percent, fiscal management will remain challenging for the government in the current fiscal year. The government has set a target of collecting Rs 1422bn in revenue in FY 2023/24. Given the revenue collection in the last FY, the government can meet the target if it succeeds in increasing revenue collection by 48.58 percent in the current fiscal year. 

Economist Adhikari said that the government faces a huge challenge in the new fiscal year also. “Now, the new monetary policy should take a policy direction of keeping economic activities running and vibrant,” he said. “The interest rate of loans to the productive sector should be made cheaper. This will increase economic activity and increase revenue collection.”

South Asian nations are facing challenges in achieving Sustainable Development Goals (SDGs) related to ending hunger, improving nutrition, and promoting sustainable agriculture. Malnutrition is described as the greatest form of violence and a weapon of mass destruction. Shakeb Nabi, Country Director of Nepal of Welt Hunger Hilfe (WHH) says, “Two millions people die around a year globally of hunger i.e. 5,500 people per day die of hunger.”

The regional consultation meeting on “Promoting Nutrition sensitive Agriculture for improving Nutrition security and Health of Smallholders in South Asia” was held for a two-day period on 12-13 July 2023 in Kathmandu, with the goal of addressing malnutrition and food security as well as identifying major Nutritional Sensitive Approaches (NSA) in South Asia. 

The event, organized by the South Asian Association for Regional Cooperation (SAARC) and Welt Hunger Hilfe (WHH), brought together stakeholders from the food and agriculture industries, government representatives, and experts in the field to discuss nutrition-sensitive approaches in the region.

Dr Tamanna Ferdous, the Regional Nutritional Advisor, emphasized the need for a multi-sectoral approach to combat child malnutrition in South Asia. She provided alarming statistics on global hunger and malnutrition, highlighting the insufficient consumption of necessary food groups by children in South Asia. “According to the Global Hunger Index research, world hunger is increasing and most children in South Asia do not consume enough of the necessary food groups,” she said that over 7m individuals experience regular hunger, and 2 out of 3 women who are of reproductive age have at least a micronutrient deficiency worldwide. Globally, 50m  children are wasted, 150m children are stunted, and 30 percent of women of childbearing age have an iron deficiency. 

Bedu Ram Bhusal, Minister of Agriculture and Livestock Development, attended the event as a special guest. Stephan Russek, Head of Development Corporation and Economics at the German Embassy, emphasized the importance of collaborative efforts and a multi-sector approach.

Minister Bhusal said that we should focus on indigenous crops to minimize hunger and malnutrition issues.

During the event, country representatives presented papers on the nutrition situation in their respective nations. Issues such as poor meal diversity, lack of micronutrients, improper cooking techniques, and increased marketing of unhealthy food were discussed. Progress reports showed improvements in reducing underweight, child wasting, and anemia in Nepal. However, challenges such as poor policy implementation, lack of coordination among stakeholders, unregulated pesticide use, and pre- and post-harvest losses still hinder Nepal’s nutrition-sensitive approaches.

Sujan Dhungel, senior monitoring and evaluation officer, presented a progress report on the state of anemia, stunting, and wasting. Within a five-year period, the prevalence of underweight decreased from 48 to 19 percent, child wasting decreased from 11.3 to eight percent, while anemia among children under the age of five decreased from 53 to 43 percent. 

Sachin Jain, Secretary Bikash Samiti of Madhya Pradesh in India, highlighted the significance of nutrition-sensitive micro planning and community engagement. He emphasized the importance of equal participation, prioritization, implementation, and continuity in the community. Project Coordinator of WHH Nepal, Deependra Chaudhary, shared insights on a behavioral change approach to address malnutrition, specifically discussing a successful 15-day nutrition camp that educated the community on health and nutrition.

In a panel discussion, Sabnam Shiwakoti, Joint Secretary of Nepal’s Ministry of Agriculture and Livestock Development, identified weak strategic implementation, sectoral funding distribution, and inadequate reporting and monitoring as obstacles to improving nutritional security programs. Dr Dipika Agrahar, Principal Scientist at the Indian Council of Agricultural Research (ICAR), highlighted the lack of value placed on micronutrients in South Asia due to financial constraints.

The conference celebrated the collaborative multi-sectoral strategy called ‘Nutrition Smart Community,’ involving various stakeholders. It also resulted in new policies and recommendations to promote nutrition security in South Asian countries, taking into account the contextualized nutritional status of each country and the challenges discussed during the event.

Bakhat Bahadur Thapa is a 58-year-old novelist who began writing at the age of 32. He has written several novels, including ‘Pardesh’, ‘Kuiro ra Kaag’, ‘Kaalchakra’, and ‘Jungey’. He has also penned three short story anthologies. Thapa is a computer hardware technician by profession. In Nepali literature, he has gained fame for his style of using technological expertise to portray societal themes. Babita Shrestha from ApEx spoke to Thapa about his experience as a novelist.

What made you want to write?

After finishing school, I went to India to acquire technical vocational skills. There I struggled a lot. Later, after my return to Nepal, I used to tell my friends about those days and they would listen to me with great interest. One of my friends happened to be a journalist at the time and he asked me to write some stories. That was the turning point for me to pursue a career in writing. But later I couldn’t get in touch with him so I published the work myself. That was how ‘Pardesh’ came out in 2001. 

How many books have you published so far?

My first book ‘Pardesh’ is centered on facts regarding the brain-drain in Nepal. It explores various psychological aspects as well as illustrates the plight of Nepalis living abroad. I then published ‘Kuiro ra Kaag’. It’s about polygamy in the western part of Nepal. Following that, I released ‘Kaalchakra’ in 2007. The novel subtly highlights the Maoist insurgency period while making references to the corruption, fraud, and slavery in Nepal. I published ‘Jungey’ in 2014 to reflect the political and economic situation in rural areas in Nepal. After three years, I released its sequel, ‘Jungey ko Diary.’ I authored ‘Deshan’ in 2021. It’s about an epidemic and environmental issues. Besides that, I have written three collections of short stories, including ‘Computer Aatanka’, ‘Sheershak Sangai Sarita’ and ‘Aaghat’.

Can you run us through your writing process?

The majority of storylines and events are inspired by incidents I experience. Turning many social situations into fiction, in my opinion, is the primary method of creating a novel. Take ‘Pardesh’ for instance. My experiences of traveling from Dailekh to Delhi, as well as my first encounter with electricity, trains, and electrical devices, have all been turned into a novel. Simple events establish a plot and I embellish it with words and my own sense of style. As I write, I also strive to balance the plot with themes, give the words a deep meaning, and use figurative and metaphorical language.

Being a novelist yourself, what sorts of novels do you enjoy the most? Are there any authors or novels that have had a significant impact on your writing?

For me, reading literature is about making room to educate, entertain, and inform oneself. So I like novels which embrace social issues, impart knowledge, and have logic. I enjoy narratives that are humorous. I’m passionate about reading. I became a fan of Diamond Sumsher Rana after reading ‘Seto Baag’. I also enjoy reading Maxim Gorky. He is another one of my favorite authors. What really impresses me about these author’s works is how well they portray the story while incorporating fresh vocabulary and deep implications.

What is the most rewarding aspect of being a novelist?

When people acknowledge me for my contributions, I consider that to be my greatest success. There was a time when I had to go to Tribhuvan University to fix a computer. The person I was supposed to meet didn’t recognize me at first but she later came up to me to ask if my stories were included in the Grade 12 curriculum. When I confirmed her suspicions, she told me that I was well-known throughout the institution. Hearing that was like music to my ears.

Thapa’s Picks

‘Alikhit’ by Dhruba Chandra Gautam

It’s Nepali fiction first published in 1983. It’s the story set in an unidentified village in the Tarai region of Nepal.

‘Aama’ by Maxim Gorky 

The Nepali translation of Mother by Maxim Gorky was published in 2018. It’s a story about the lower class women working in a Russian factory and it highlights the struggles and poverty of the society in the Russian Empire.

The price of gold has increased by Rs 300 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 112, 500 per tola today. It was traded at Rs 112, 200 per tola on Monday.

Meanwhile, tejabi gold is being traded at Rs 111, 950 per tola. It was traded at Rs 111, 650 per tola.

Similarly, the silver is being traded at Rs 1, 480 per tola today.

Finance Minister Dr Prakash Saran Mahat and Finance Minister of China Liu Kun held a meeting on Monday during the sidelines of the G20 meeting in Gandhinagar, Gujarat, India.

Various issues of mutual interest and bilateral relations were discussed in the meeting, according to Dr Mahat's Secretariat.

"Both ministers shared the same opinion that both sides are sensitive to each other's interests and concerns while Dr Mahat expressed his gratitude for China's continued assistance to development endeavors of Nepal."

The two finance ministers also discussed the commitment of aid made by the President of China during his visit to Nepal in 2019.

On the occasion, Minister Dr Mahat expressed his belief that the projects on roads connecting the two countries from the important transit points could be an important area of aid and that the relevant agencies of both countries should do their homework and move forward soon. He also expressed hope that the Tokha-Chhahre tunnel way construction project will be implemented soon.

In response, Chinese Finance Minister Kun expressed China's desire to help Nepal's development and expressed his belief that the cooperation projects will be implemented soon.