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Senior leaders of major political parties along with the Speaker have agreed to pick the President of the Parliamentary Committee. In the meeting held on Tuesday, Prime Minister and CPN (Maoist Center) Chairman Pushpa Kamal Dahal, main opposition party leader and CPN-UML Chairman KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba along with Speaker Dev Raj Ghimire have agreed to pick the Parliamentary Committee President at the earliest. Emerging from the meeting held at the Speaker’s office in Singha Durbar this morning, Speaker Ghimire said that the leaders have agreed to finalize the President of the Parliamentary Committee as soon as possible. “Leaders have expressed their commitment to pick the President of the Parliamentary Committee immediately,” Ghimire said, adding, “The Committee will get the leadership soon. As there is no leadership, the meeting is being conducted by the senior member. The discussions on the bills have not been able to move ahead as the senior member is leading the Committee.” He said that the discussion was also held to take the Parliamentary activities ahead in an effective way. Similarly, Law, Justice and Parliamentary Affairs Minister Dhan Raj Gurung said the leaders have agreed to elect the President as soon as possible. The 10 thematic committees of the House of Representatives were formed on April 28. A meeting of the 10 committees was held at the same time on May 16 two weeks after the formation of the Committee. The Committee, however, could not hold discussions on the bills as the President could not be elected on time.  

After going through a liquidity crunch in the first half of the current fiscal year, the banking system is once again flushed with excess liquidity. With demands for loans drying up, investable capital has been piling up in the banking system in recent days. As of June 29, investable capital worth Rs 357.21 billion has been accumulated in banks and financial institutions (BFIs). The deposits of BFIs amounted to Rs 5,599bn, while loans totaled Rs 4,859bn. As there is no demand for loans currently, the CD ratio of commercial banks has been continuously decreasing. The CD ratio which was 88.07 percent in mid-July, 2022, has fallen to 83.62 percent on June 29, 2023. As per central bank regulatory norms, banks can disburse 90 percent of their deposits in loans. Banks have to maintain the credit-to-deposit ratio (CD ratio) at 90 percent. Bankers say commercial banks are now in a situation to give loans of around Rs 350bn. As the government also spends in the last quarter massively, a large amount of cash is deposited in banks in the period. BFIs generally make little lending during the last quarter of the fiscal year. The BFIs that were experiencing a liquidity crunch until a few months ago are now facing problems of non-disbursement of loans. While liquidity is increasing, bankers say demands for loans have remained low. The credit expansion to the private sector in the first 11 months of the current fiscal year is far less than what the BFIs lent during the same period last fiscal year. According to the data of the Nepal Rastra Bank, the deposits of commercial banks have increased by Rs 386bn in the current fiscal year. However, their lending has grown by Rs 130bn only. According to bankers, the private sector has not sought bank loans with the deepening economic downturn. On the other hand, retail loans such as housing loans and auto loans have not grown with interest rates still remaining high. While the BFIs have been gradually lowering the loan interest rates, the demand for loans has not surged as expected. “The demands for loans have remained subdued due to the state of the economy and businesses,” said Sudesh Khaling, CEO of Everest Bank, “The demand for loans will not increase automatically even if the interest rate is falling. there must be a conducive business environment for that.” Bankers say lending will not grow much in Ashad, the last month of the fiscal year, in which BFIs will be more focused on loan recovery. Bankers say the other reason behind the sluggish lending is banks have become more cautious in loan disbursement due to a sharp rise in non-performing loans (NPLs).

The price of gold has increased by Rs 400 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 110, 400 per tola today. It was traded at Rs 110, 000 per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 109, 850 per tola. It was traded at Rs 109, 550 per tola. Similarly, the silver is being traded at Rs 1,375 per tola today.

Three children died and one was injured after a landslide buried a house at Panena in Arghakhanchi on Tuesday. The deceased have been identified as Anju Raskoti (11), Dhan Bahadur Raskoti (10) and Khum Bahadur Raskoti (12). They breathed their last during the course of the treatment. Panena Rural Municipality Chairman Achyut Gautam said that three children died and one was injured after a landslide buried a house at Gohanpani in Panena of Panini-1 this morning. Police said that three were rescued in an unconscious state and one was rescued safely. Sachin Raskoti (14), who was rescued safely, has been sent to Palpa for treatment.  

The Election Commission has suggested a number of measures, including incorporation of the right to reject in the ballot paper, to make elections free, fair, transparent and reflective of the public pulse. A meeting of the EC held on Monday decided to forward a draft Bill to amend and consolidate laws relating to elections to the Parliament through the Ministry of Home Affairs. The draft has suggested including in the ballot paper an option—None of the Above (NOTA)—that will enable the voter to reject all of the candidates if they so wish. This recommendation is in keeping with a 2014 Supreme Court ruling that had directed the government to change electoral laws to give voters the option to reject all candidates if they so wish. If NOTA votes exceed 50 percent of total valid votes cast in any election, such election shall be canceled, the EC has proposed. This is not the only measure that the EC has suggested. It has proposed making a law barring an individual from serving as a member of parliament for more than two terms under the proportional representation system. The EC has also recommended that arrangements be made to enable Nepali voters based abroad to vote for elections for the House of Representatives under the PR system in coordination with diplomatic missions. It has suggested the government to collect the voters’ list abroad by mobilizing these missions. For the first-past-the-post system of elections for the House of Representatives and Provincial Assemblies, the EC has suggested that at least 33 percent candidates be female. It has proposed giving candidates from Dalit communities, women, economically disadvantaged or gender and sexual minorities, minority communities and persons with specific disabilities 50 percent discount on the bond amount. At local-level polls, EC has suggested using two separate ballot papers for positions like chair and vice chair as well as mayor and deputy mayor. A member of a party shall not be made a candidate on behalf of another political party without quitting the position, the bill states, adding: Candidates should spend money through bank accounts mentioned in their respective nomination papers. The EC said the draft has incorporated provisions in seven election laws as well as inputs from experts and stakeholders. Shaligram Sharma Paudel, spokesperson at the EC, said in a press release that the Commission has proposed new provisions on compilation of the voters list and the eligibility of candidates, among other issues. These suggestions came during discussions and interactions with stakeholders held at all seven provinces and the Center during drafting of the Bill, the commission said, adding that the Council of Ministers had given its theoretical consent for discussions and interactions on the matter on 29 Dec 2021. Countries like India, Spain, Pakistan and Bangladesh have embraced NOTA.

The Nepal Oil Corporation (NOC) slashed the prices of petroleum products on Tuesday. The NOC said that the prices of petrol, diesel and kerosene have been slashed by Rs 5 per liter. According to the new revised rate, the price of petrol will be 170 per liter while the price of kerosene and diesel will be Rs 150 per liter each. Similarly, the cost of petroleum products in Surkhet and Dang (first category) has been reduced by Rs 6 per liter while in Charali, Biratnagar, Birgunj, Janakpur, Amlekhgunj, Bhalbari, Nepaligunj and Dhangadhi (second category) have been slashed by Rs 7. 50 per liter. The state-owned oil monopoly, which has not revised the price of Liquefied Petroleum Gas (LPG), reduced the price of domestic aviation fuel by Rs 14 per liter and international aviation fuel by USD 115 per liter.    

The status of Nepal Red Cross Society (NRCS), a charitable social organization, is currently illegal as it has been failing to provide the necessary documents for registration renewal as requested by the District Administration Office (DAO) in Kathmandu for the past five years. Consequently, in Sept 2020, the Kathmandu DAO ordered the NRCS not to hold its annual general meeting (AGM) until further notice. However, to the surprise of many stakeholders, the Kathmandu DAO has now allowed the NRCS to hold the AGM. This decision has taken stakeholders by surprise. They are concerned that the NRCS is on the verge of dissolution due to the lack of organization registration and the confusion surrounding the AGM. Moreover, questions are being raised about the very existence of the NRCS because of political interference and corruption scandals. Nineteen study committees were formed to investigate irregularities within the NRCS, and sixteen of them have already submitted their reports. These reports have unanimously exposed rampant corruption within the NRCS. The International Committee of the Red Cross (ICRC) based in Geneva has also acknowledged that corruption  is rampant with NRCS, posing a challenge to the fundamental principles of humanity, impartiality, and neutrality upheld by the Red Cross movement. Since NRCS is a social organization, corruption and irregularities within it do not fall under the jurisdiction of the Commission for Investigation of Abuse of Authority (CIAA). Nevertheless, cases have been filed with the Central Investigation Bureau (CIB) of Nepal Police, the Department of Money Laundering Investigation, and the DAO in Kathmandu. However, these bodies have not been actively investigating and making those responsible accountable. In 2018, a task force formed by the Ministry of Women, Children, and Senior Citizens, through the Social Welfare Council, investigated NRCS activities and uncovered irregularities amounting to Rs 16bn over a span of 10 years. Min Bahadur Shrestha, a member of the National Planning Commission at the time, served as the coordinator of the task force. Between 2008/09 and 2018/19, the NRCS received Rs 15.95bn in foreign assistance. The NRCS audit reveals that Rs 15.61bn was spent during the period. However, the NRCS sought spending approvals for only Rs 2.86bn from the Social Welfare Council. Over the course of 10 years, the NRCS spent over Rs 15bn without seeking approval from the council. Another study committee, led by Laxmi Koirala in 2018, also identified irregularities and corruption within the NRCS. The committee recommended dissolving the working committee of the NRCS and making the office-bearers and members ineligible to hold office for a certain period. Ten years ago, the CIAA instructed the police to recover approximately Rs 20m from office-bearers and members for irregularities in procuring materials for the blood transfusion center. Similarly, a study conducted by the Kathmandu DAO revealed embezzlement of Rs 19.3m during the procurement of land to build a warehouse in Bhaktapur. The land was bought for Rs 63m. Although 84 aana of land was purchased, NRCS records show a shortfall of 4 aana. Furthermore, another committee, led by Mohan Raman Bhattarai, suggested the regulation of organizations like the NRCS. The State Affairs Committee of the House of Representatives also engaged in a serious discussion concerning the NRCS and issued instructions for necessary actions. Between 2014 and 2020, five other study committees were formed, but the government failed to take any action to implement their study reports. Same general secretary for 35 years! Devratna Dhakhwa served as the General Secretary for a long period of 35 years, four months and 14 days. He was associated with the NRCS from 1986 until 2020. Similarly, Dr Jaya Narayan Giri held the position for 18 years, five months and 29 days, assuming the post in 1963 and continuing until 1982. The position of Chairman has also been occupied by individuals for an extended period. Princess Princep Shah chaired the organization for 18 years, eight months and 20 days. Helen Shah succeeded her and held the post of chairperson for seven years, nine months, and 26 days. Ramesh Kumar Sharma served as the chairman for 16 years, three months and 26 days, while Sanjiv Thapa held the position for 13 years, one month and 27 days between 2007 and 2020. Although no longer in the NRCS executive committee, Thapa remains an influential figure within the organization. His close aide, Umesh Prasad Dhakal, currently serves as the executive director. Study reports indicate various irregularities have been orchestrated under his involvement. Despite efforts by the NRCS executive committee to remove him from his position, he continues to hold it due to pressure from certain interest groups. Same leadership in districts for four decades Nepotism has become a hallmark of the NRCS. The central office is filled with relatives of the district chairpersons and other influential figures. The same situation prevails in district chapters, where individuals have held positions for decades. For instance, Rajendra Singh Khadka has been the chairperson of the Bara chapter of NRCS since 1982. Rajendra Man Talchabhadel has been the district chairman of Sindhupalchowk since 1984. The involvement of the same individuals for an extended period has led to the misuse of NRCS resources. Office-bearers have been using NRCS cars for personal purposes, and some have been using NRCS funds to pay the salaries of their drivers and maids. The NRCS administration, led by the executive director, paid Rs 30m to Lama Construction for the construction of the Central Blood Transfusion Center building at Exhibition Road. Since the administration is not allowed to issue checks exceeding Rs 2m, it bypassed the rule by issuing 15 checks of Rs 2m each.

In what augurs well for the Nepali tourism industry, the number of tourist arrivals has reached 476,507 in the first half of 2023. The tourist arrival has surged by 97.79 percent in the first six months of 2023 compared to the same period in 2022. With healthy growth in tourist arrivals from the start of this year, tourism entrepreneurs are expecting 1m international visitors in the country by the end of 2023. While tourist arrivals have improved significantly compared to the last three years, the number is yet to touch the pre-Covid level. Nepal had received 573,658 tourists in the first six months of 2019. The arrival of foreigners in the first six months of 2023 is 83.06  percent compared to the same period in 2019. According to the latest statistics from the Nepal Tourism Board (NTB), Nepal welcomed 72,250 foreign visitors in June. The tourist footfall in June 2023 is 96.48 percent compared to June 2019 when 74,883 foreigners visited Nepal. Nepal welcomed 55,074 international visitors in Jan, 73,255 in Feb, 99,426 in March, 98,773 in April, and 77,703 in May. Nepal received the highest number of tourists from India, the US, and China in June. According to NTB, 38,845 Indian tourists and 8,470 US visitors came to Nepal in June. The country welcomed 4,343 tourists from China, 2,402 tourists from Bangladesh, 1,992 from the United Kingdom, 1,639 from Australia, 1,079 from Malaysia, and 8,88 from South Korea. With the easing of travel restrictions and China reponing outbound travel for its citizens, Nepali tourism entrepreneurs are pinning high hopes for 2023. NTB on its 24th anniversary announced that it aims to attract at least one million foreign tourists in 2023. In 2022, tourist arrivals reached over 600,000 without any significant contribution from China. Only 9,595 Chinese tourists visited Nepal in 2022. Tour operators say they are receiving increasing fresh inquiries from major source markets including China. While the FITs (free independent travelers) have already started coming to Nepal, group travelers from the northern neighbor arrived in the second week of April, the first group tour from China after the Covid-19 pandemic. The arrival of 180 Chinese trekkers in Nepal on April 13 has rekindled hopes for Nepal’s tourism sector. They were the first of four batches of nearly 8,00 Chinese trekkers to visit Nepal to trek on the Poon Hill trail located some 270 kilometers west of Kathmandu. This visit has come after China included Nepal on a second list of 40 destinations for group tours that Chinese nationals could visit starting from March 15. After the northern neighbor allowed its citizens to visit Nepal, NTB and Nepali travel trade entrepreneurs are visiting various Chinese cities to promote Nepal tourism. Travel trade entrepreneurs say that a significant contribution of Chinese tourists would be required if Nepal wants to meet the target of one million visitors in 2023.