Submit your Article

Pashupati Shumsher Rana is a senior leader of the Rastriya Prajatantra Party (RPP) and a member of the House of Representatives (HoR). His party is in opposition with 14 members in the HoR.  Kamal Dev Bhattarai of ApEx talked to Rana on current political developments. Excerpts: How do you see the current state of Nepali politics? The composition of Parliament makes it fragile. Whatever you say about the coalition, the intrinsic fragility of parliamentary parties does not forecast a very stable future. Over the last 30 years, we have seen the same situation, haven’t we? No, there have been some exceptions. The last government led-by CPN-UML Chairman KP Sharma Oli had nearly a two-thirds majority but that just faded away. So, it is not inherent in the nature of parliamentary journey but it is in the nature of leadership of major parties. What is the major problem with the leadership of major political parties? The two principal things that leadership of major political parties lack is honesty and efficiency. When you are in that state, there is no point talking about the vision. How can you have a vision when you are fundamentally corrupt and you are fundamentally inefficient? You cannot run the country because you have personal interests, not a national interest. So, no matter how large a majority you have, these deep inherent personal problems will not make a good future possible for Nepal. How do you see the emergence of new political parties like Rastriya Swatantra Party (RSP)? They have risen very fast. During the general elections of 2022, I didn’t even know the Rastriya Swatantra Party (RSP) existed. But it came out of the blue, they overtook us and became the fourth largest party in Parliament. And in the by-election, the votes they got were outstanding. They have extremely talented people. I know a few of them like Swarnim Wagle who is a renowned economist. In the last general elections, we also saw the re-emergence of the RPP, how do you see it? Well, we hoped to be the fourth party but because this RSP came out the blue we came fifth.  Yet, we have 14 members which is an important number in Parliament. It’s much better than the position we got in the previous elections. We have seen very capable leaders in the RPP for a long time, but why is the RPP failing to make a strong party? We started with a few members—with me, Dr Prakash Chandra Lohani and Ram Krishna. In the 1991 election, we got 18 seats, Surya Bahadur Thapa became the prime minister first and thereafter Lokendra Bahadur Chand. These two figures became prime ministers three times. The differences within the party and tendencies of split destroyed our party. At that time, out of 18 members, everyone wanted to become prime minister. Those splits have been bad for the party. Since then, we have come a long journey. Even now, we are a party with differences. But we are only a long-standing party that has handed over leadership to the new generation. Also, RPP is now headed by Ranjendra Lingden who comes from an ethnic group. Now, we have outstanding young leaders like Gyanendra Shahi and Rabindra Mishra. We have some women leaders who are well-educated. We just had a meeting of the Central Committee and our assessment is that we have a good future. Why do you think the Hindu state and return of monarchy in Nepal is important? When we started, if you remember we started with a very simple principle such as nationalism, multi-party democracy and liberal agendas. At that time, there was a constitutional monarchy and Hindu state. Our Hindu identity was very important in the world. Along with this we have the identity of Mt Everest and Gautam Buddha. We just gave up our Hindu identity for nothing. And regarding the head of the state, the glamor and prestige of the crown is necessary. President Ram Chandra Paudel is a nice person and I have huge respect for him. But does he have a crown? No. There is no glory when there is no crown. People used to bow to the crown out of respect, but the present head of state doesn’t equal the glamor, prestige that monarchy had. How are our domestic policies affecting our international relations? Well, think of somebody like Indian Prime Minister Narendrea Modi or Chinese President Xi Jinping. What a poor opinion they must have about our leadership? If they do not respect you even at the level of foreign minister or foreign secretary, their respect for our leadership must be very poor. They are not treating our leadership respectfully. We do not have a good leader who could talk on equal terms with really powerful neighbors. What is your view on the foreign policy of monarchy? King Mahendra was one of the great rulers. And Birendra was there for a very long time. As both kings had fundamental qualities, they earned respect not only from neighbors but from across the world.The standing of Nepal and monarchy was much, much higher. What is your suggestion for the present government regarding foreign relations? We must not limit ourselves to our neighbors. The greatest power of today is the United States. We have to embrace the great power of the world. We have to follow the long-standing principles of balance between the powers to the north and powers to the south. Today, when you talk about the powers of the south, they include the United States, India, Japan, and Australia. When you think of the north, we cannot separate Russia. So with this understanding, this principle of balance must be the basis of Nepal’s geopolitics.

Around 500 people have successfully climbed the world’s highest peak. During this spring season, 500 mountaineers and guides have scaled Mt Everest, according to the Department of Tourism. Around 500 people have climbed Mt Everest as of today. A total of 478 mountaineers have obtained expedition permits to climb Mt Everest in this spring season. The 500 also includes the Sherpa guides of different expedition teams, Director General of the Department Hom Prasad Luintel. This year's spring climbing started on May 13. This is the first time in history that 478 permits were issued to climb Mt Everest in the spring season. This includes 103 women and 376 men from 47 mountaineering teams, the Department said.

The Cricket Association of Nepal (CAN) has announced a 22-member squad under the captainship of Rohit Paudel for the World Cup Qualifiers in Zimbabwe. Along with Paudel, Kushal Bhurtel, Asif Sheikh, Gyanendra Malla Kushal Malla, Arif Sheikh, Dipendra Singh Aire, Gulsan Jha, Sompal Kami, Karan KC, Sandeep Lamichhane, Bhim Sarki, Pratish GC, Lalit Rajbansi, Arjun Saud, Sandeep Jora, Dev Khanal, Kishor Mahato, Surya Tamang, Kamal Singh Airee, Shyam Mausam Dhakal and Abinash Bohara are in the team.

Lumbini Province Chief Minister Dilli Prasad Chaudhary expanded his Cabinet. Raju Khanal has been given the responsibility of the Health Ministry. Similarly, Chandrakesh Gupta of the Janamat Party has been appointed as the Minister for Social Development and Sanosh Kumar Pandey of the Democratic Socialist Party as the Minister for Internal Affairs, Law and Cooperatives Likewise, Lal Ahir of the Janata Samajbadi Party has been appointed as the Minister for Agriculture and Land Management and Dharma Bahadur Chaudhary of the Nagarik Unmukti Party as the Minister for Physical Infrastructure. They were appointed as ministers today. Meanwhile, Dhan Bahadur Maski has been appointed as the Minister for Economic Affairs.

The Nepal Stock Exchange (NEPSE) gained 8.10 points to close at 1,891.31 points on Monday. Similarly, the sensitive index surged by 0.54 points to close at 358. 88 points. A total of 3,495,752-unit shares of 272 companies were traded for Rs 1. 27 billion. Meanwhile, Aatmanirbhar Laghubitta Bittiya Sanstha Limited was the top gainer today, with its price surging by 10. 00 percent. Similarly, GreenLife Hydropower Limited was the top loser as its price fell by 10.00 percent. At the end of the day, total market capitalization stood at Rs 7. 37 trillion.

Nepal Rastra Bank (NRB) has recently established a separate division within the Payment Systems Department with an aim to introduce digital currency in the country in the future. NRB has planned to introduce the Central Bank Digital Currency (CBDC) in pilot testing within the next one and a half years. The creation of the division is based on a concept paper on CBDC which the central bank published in Aug 2022. The central bank plans to move ahead based on the suggestions received on the concept paper by developing mechanisms and infrastructure to launch digital currency in the country. The NRB study suggested creating a separate structure and team to advance the CBDC project. Guru Prasad Paudel, Head of NRB’s Payment Systems Department, said the digital currency will be introduced in pilot testing in the next one-and-a-half years. “We will manage the necessary human resources required for digital currency. Once the necessary infrastructure is ready, we will start the tests,” he said. The central bank had initiated the study on digital currency as per the Monetary Policy of FY 2021/22 which states that a feasibility study for digital currency in Nepal will be conducted in the context of ongoing worldwide studies regarding the usage and feasibility of electronic currency. With the majority of central banks around the world exploring central bank digital currency (CBDC) options, the NRB also formed a steering committee headed by Deputy Governor Bam Bahadur Mishra to make necessary recommendations regarding digital currency. A CBDC is the digital form of a country's fiat currency. Like the fiat currency, CBDC is also issued by the nation's monetary authority. It is considered a form of legal tender that can be used for the exchange of goods and services. Of late, many countries are exploring how CBDCs may affect their economies, financial networks, and stability as CBDCs have the potential to reshape the payments industry. A 2021 Bank for International Settlements (BIS) survey of central banks found that 86 percent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 percent were deploying pilot projects. According to international media reports, China launched e-CNY in 2020, Hong Kong Monetary Authority (HKMA) commenced e-HKD pilot program in 2023 and the Reserve Bank of Australia commenced a retail CBDC pilot in 2023, with a report due mid-2023. In China, the People’s Bank of China (PBOC), the Chinese central bank, started the pilot project on e-CNY in four major cities, namely Shenzhen, Suzhou, Xiongan, and Chengdu. Since the start of the pilot project, the value of transactions made using e-CNY has surpassed 100 billion yuan, and PBOC has expanded the pilot to include the entirety of four provinces - Guangdong, Jiangsu, Hebei, and Sichuan. By the end of 2022, PBOC reported that there were 13.61 billion yuan of e-CNY in circulation, representing 0.15 percent of the total volume of yuan in circulation. While China is yet to announce the date for the nationwide launch of e-CNY, however, companies including Alibaba and Tencent have integrated e-CNY into their systems as a payment option. In Hong Kong, the HKMA on 18 May 2023, announced the commencement of the e-HKD pilot program, with 16 firms selected to participate. While the United States Federal Reserve has made no decisions on whether to pursue a US CBDC, however, it has been exploring the potential benefits and risks of CBDCs. The Federal Reserve in January 2022, released a discussion paper examining the pros and cons of a potential retail CBDC. The Central Bank of the Bahamas was the first central bank to introduce a full-fledged CBDC in October 2020- the Sand Dollar. The Eastern Caribbean Currency Union, consisting of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia, and St. Vincent and the Grenadines, launched its digital currency in March 2021.

Police have submitted a report on the fake Bhutanese refugee scam to the District Attorney’s Office on Monday. The District Police Range, Kathmandu submitted the report to the District Attorney’s Office this afternoon. The police, who started the investigation from March 26, submitted the report to the District Attorney’s Office nearly two months later. So far, police have arrested 16 individuals including former deputy prime minister Top Bahadur Rayamajhi and former home minister Bal Krishna Khand. Police have concluded that at least 32 people were involved in the incident. Police have recommended the District Attorney’s Office to file cases under treason, fraud and organized crime against those involved in the fake Bhutanese refugee scam.

When the United States announced duty-free access for 66 Nepali goods including readymade garment products such as headgear, shawls, scarves and travel goods, and certain types of carpets in 2016 to help Nepal in the recovery from the impacts of the 2015 earthquake, it was considered a new dawn for the ailing garment industry of the Himalayan country. However, eight years down the line, the country’s garment industry is yet to make any substantial progress in boosting exports to the US market. After then US President Barack Obama signed the US Trade Facilitation and Trade Enforcement Act that included Nepal Trade Preference Program (NTPP) in February 2016, Nepal’s 66 items officially got duty-free market access for 10 years. The number of products eligible for preferential treatment was later expanded to 77. NTPP was designed to help Nepal’s economic recovery from the earthquakes that struck the country in 2015. It also authorizes a trade capacity-building program, focused on helping Nepal implement the World Trade Organization’s Trade Facilitation Agreement. RMG producers say that Nepal’s garment industry has failed to take advantage of the preferential trade treatment by the US due to several reasons. According to the Garment Association of Nepal (GAN), the umbrella organization of Nepali readymade garment producers, Nepal’s garment exports to the US in the fiscal year 2016/17 were worth Rs 1.05bn which grew to Rs 1.83bn in FY 2021/22. According to them the sharp appreciation of the US dollar against the Nepali rupee and skyrocketing inflation also played a part in this growth. In terms of quantity, Nepal exported 2.69m units of readymade garments which came down to 1.31 million in FY 2021/22. GAN data show the country’s overall exports of garments grew to Rs 7.29 billion in FY 2021/22 from Rs 5.30bn in 2016/17. “Even though the US government granted duty-free market access to our products, we failed to receive demand from major US buyers,” said Pashupati Dev Pandey, president of GAN. “We have been able to sell limited types of products receiving the duty and quota-free facility in the US market. We have not been able to sell products like suitcases, animal hair, and travel equipment, among many other items.” Over the last eight years since Nepal was granted the duty and quota-free facility, Nepal’s garment industry also failed to enhance its competitiveness. “Almost all the items on which duty and quota-free facilities are available have an applied tariff rate of 4-9 percent by the US government,” said Pandey. “As our cost of production is higher, we have not been able to take advantage of tariff advantage.” During the sixth meeting of the US-Nepal Trade and Investment Framework Agreement (TIFA) Council last week in Kathmandu, Nepal sought its interest in expanding the list of products eligible to receive tariff-free treatment under the program. Nepal and the US also deliberated on the impact of NTPP’s upcoming expiration on December 31, 2025. “Both governments affirmed the importance of the NTPP to the bilateral relationship and acknowledged the potential of the program to enhance trade between the two countries,” reads a statement issued by the US embassy. During a meeting between Nepal’s private sector representatives and the US delegation, Nepali garment exporters sought duty-free and quota-free (DFQF) market access for products like shirts, pants, and ladies’ dresses which are also known as fast-moving garment items. “US tariff on such items stands between 14-34 percent and Nepali garment industry can take advantage of it,” said Pandey. “Because of the lack of demand, we also failed to invest in the modernization of our factories over the years.” During the sixth TIFA meeting, Nepal emphasized its need for additional support for productivity enhancement and capacity building to ensure sustainable and smooth graduation from the Least Developed Country status. The Nepal side also requested DFQF market access beyond 2026 to sustain the country's graduation from the least developed country to a middle-income nation. Minister for Industry, Commerce, and Supply Ramesh Rijal sought US assistance, especially in the continuation of LDC-specific trade preferences such as DFQF market access, flexible rules of origin, and LDC-specific technical assistance for a few more years after graduation. The 40th plenary of the 76th Session of the United Nations General Assembly (UNGA) in November 2021 unanimously adopted a resolution, endorsing Nepal’s graduation from the LDC category to a developing country with a preparatory period of five years. Following graduation, Nepal will lose the facilities that the country has been enjoying as an LDC. The US is Nepal’s sixth largest trading partner after India, China, Indonesia, the United Arab Emirates, and Argentina but the second largest export market for Nepal. Nepal exported goods worth Rs 17.99bn to the US in fiscal 2021/22 while imports from the US stood at Rs 50bn, according to the Trade and Export Promotion Centre. During the meeting, Nepali officials said that its IT-related services have significant export potential and expressed interest in expanding bilateral trade in these sectors. Both delegations expressed their interest in ensuring that workers in both countries are able to take advantage of the opportunities in the digital economy.