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To calm down the anger of a desperate business community that is bearing the brunt of the economic downturn, the government has said it will take necessary measures to take the derailed economy back on track. On Tuesday, Prime Minister Pushpa Kamal Dahal and Finance Minister Dr. Prakash Saran Mahat have assured the private sector that the government is working on lowering interest rates and reinvigorating the investment climate in the country. Addressing the 57th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industries (FNNCI) on Tuesday, Prime Minister Dahal said the government is committed to resolving the problems of the economy and intensive discussions have started between the government and Nepal Rastra Bank. "All the government agencies are working together and are on the same page for reducing the borrowing rates, making the market vibrant by increasing the capital expenditure, and other policy interventions," said Dahal. With businesspersons across the country gathering in Kathmandu for FNCCI AGM and to elect a new leadership, Prime Minister Dahal said the government is well aware of the private sector's expectations. Stating that the economy is moving towards recovery but not completely out of the crisis, Dahal said collaboration and cooperation between the government and the private sector are indispensable for economic recovery. Addressing the program, Finance Minister Mahat said that time has come for the review of the measures in the monetary policy. According to Mahat, the policy to restrict imports created pressure on revenue and the surge in the interest rates worsened the investment environment. "As sectors are in recession, the central bank should now take a policy shift. "We are in internal discussions to reduce the interest rate of deposits and loans, and the spread rate," said Mahat. Amid increasing discontent in the private sector, the government, of late, is trying to take them into confidence. On Monday, Prime Minister Dahal along with senior government officials sat down with representatives of banks and financial institutions. The government has hinted that it would lift restrictions on land plotting again to reenergize the real estate sector. The real estate business has come to a standstill across the country with the government's decision to classify land for different purposes. The government implemented land use regulations in June 2022. In the regulation, the local bodies have to classify the land into 10 types. While most of the local bodies are yet to classify the land, both Prime Minister and Finance Minister have said that they would facilitate the realty business. FNCCI President Shekhar Golchha said that the country's development is not possible without the private sector. Stating that the federation is on a mission to save the economy, Golchha said, "The economy is in trouble due to the mistakes made by all parties in the past. Now, everyone has to work together for a solution." Chandra Prasad Dhakal, Senior Vice President of FNCCI said normalcy would return to the economy within three months if the government and the central bank facilitate the private sector. Dhakal called for broader consultations amongst the stakeholders to resolve the current crisis.

The price of gold has increased by Rs 1, 000 per tola in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 110, 800 per tola today. The gold was traded at Rs 109, 800 per tola on Tuesday. Meanwhile, tejabi gold is being traded at Rs 110, 250 per tola. Similarly, the silver is being traded at Rs 1,450 per tola today.

Amid increasing criticism over the policy measures of the central bank, Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari on Tuesday said that the central bank has no role in determining the interest rates. Adhikari's comments have come on the same day when Prime Minister Pushpa Kamal Dahal and Finance Minister Prakash Saran Mahat assured the private sector of lowering the interest rates. Stating that the central bank has left determining interest to the market since 1989, Adhikari said banks will determine the interest rates based on the availability of liquidity in the financial system. Addressing a press meet organized by the NRB on Tuesday, Adhikari said that it is up to the market to determine the interest rates. "If the liquidity flow in the market eases, the interest rate will automatically decrease. If the liquidity is in short supply, the interest rate will automatically increase," said Adhikari. According to Adhikari, it is wrong to say that economic activities declined due to the increase in interest rates. "This is not the first time that the interest rates have reached this level," he said, "In the past, the deposit interest rate was up to 13 percent, but people did not demand to low the interest rate. Why is there such a demand now?" Adhikari assured that the banking system in the country is safe and will not be shaken by smaller shocks. The capital adequacy ratio of banks and financial institutions is above 13 percent. "This is the strong side of Nepali banks," he said. However, the governor cautioned that the non-performing loans will increase slightly in the coming days. "The 'evergreening' of loans has been stopped and bad loans may increase due to problems in the real sector, Adhikari said, "But it will not affect the stability of our financial system." The central bank has said that the external sector of the economy has improved a lot compared to last year. Major indicators such as the current account balance, foreign exchange reserves, and remittances have shown promising signs over the last couple of months. According to Adhikari, a high-level study committee has been formed to resolve the problems of the microfinance sector. "Further decisions will be taken on the basis of the report submitted by the committee," he said.

Four Indian nationals died in a car accident at Gadhigate in Kamalamai Municipality-3 of Sindhuli along the BP Highway on Wednesday. The identities of the deceased are yet to be established. According to SP Raj Kumar Silwal of the District Police Office, Sindhuli, the car with Indian number plate (BR 06 DD -687) met with an accident at around 12.30 this morning. He said that a person, who was seriously injured in the incident, has been taken to Kathmandu for further treatment. SP Silwal said that the tragedy occurred after the four-wheeler fell some 500 meters down the road. He said that they are facing difficulties to retrieve the bodies from the incident site due to geographical complexities. A team of Nepal Army is heading towards the incident site to help Nepal Police personnel to retrieve the bodies.  

At least six persons died on the spot when a jeep they were traveling in met with an accident at Jholekmod in Patan Municipality-8 of Baitadi section along the Jayaprithvi Highway on Tuesday. The deceased have been identified as Mane Bohora (60), Nare Bohora (42), Gorakh Bohora (35), Man Bahadur Dhami (45), Birkha Dhami (45) and Bire Dhami, 40, of Kedarsyun Rural Municipality-5. The jeep (Se 1 Ja 764) was heading towards Bagthala of Bajhang from Jhulaghat when the tragedy occurred at around 11.00 pm yesterday, Inspector Yogesh Khatry, spokesperson at the District Police Office, Baitadi said. Five other passengers of the jeep narrowly escaped the fatality as they managed to jump before the accident. The jeep carrying 12 passengers had fallen 500 meters down the road. The jeep driver fled the scene after the incident. Reason behind the accident is yet to be established. Police said that they are looking into the case.

Nepal reported 106 new Covid-19 cases and one death on Tuesday. According to the Ministry of Health and Population, 476 swab samples were tested in the RT-PCR method, of which 74 returned positive. Likewise, 1, 960 people underwent antigen tests, of which 32 were tested positive. The Ministry said that 48 infected people recovered from the disease. As of today, there are 469 active cases in the country.

The Nepal Stock Exchange (NEPSE) gained 27.31 points to close at 1,871.33 points on Tuesday. Similarly, the sensitive index surged by 5. 79 points to close at 355. 45 points. A total of 3,315,720-unit shares of 262 companies were traded for Rs 945 billion. Meanwhile, Kalinchowk Darshan Limited was the top gainer today, with its price surging by 10. 00 percent. Likewise, Sanima Middle Tamor Hydropower Limited was the top loser as its price fell by 3. 54 percent. At the end of the day, total market capitalization stood at Rs 2. 72 trillion.

With the Supreme Court clearing the deck, applications for new stock exchange and commodity exchange companies will be invited again. After the Supreme Court dismissed the writs filed against the license issuance on Sunday, the Securities Board of Nepal (Sebon) said that it would invite applications again for new stock exchange and commodity exchange while it would distribute licenses to brokerage firms based on the earlier applications. According to Sebon Chairman Ramesh Kumar Hamal, the board will hold a meeting and decide to call for proposals for the license of the new stock exchange and commodity exchange after formally receiving the court decision. "The call for licenses for new stock exchanges and commodity exchanges will be made soon," he said, adding, "Broker's license is distributed on the basis of applications already received." The board plans to open applications for stock exchange and commodity exchange with a deadline of 15 days. On September 18, 2022, Sebon issued a public notice inviting interested firms to get brokerage licenses. After the Supreme Court's interlocutory interim order in the first week of November, Sebon stopped the process of issuing new licenses to new stock exchanges, commodity exchanges, and stock brokerage firms. Currently, Nepal Stock Exchange (Nepse) is the only stock exchange in Nepal. Nepse is jointly owned by the government, Nepal Rastra Bank, and Employees' Provident Fund. Established with a working capital of Rs 35m, the capital of Nepse was later increased to Rs 1bn. Now the board is planning to establish another stock exchange from the private sector. The minimum paid-up of the new stock exchange has been set at Rs 3bn. As of now, commodity exchange has not yet been legally operational in Nepal. The board had previously called for proposals for granting licenses to commodity exchanges twice. The board plans to issue licenses to two commodity exchanges for now. As for the broker licenses, Nepse has issued recommendations for broker licenses to 45 companies. There is a provision that any company seeking a brokerage license from Sebon must first get a recommendation from Nepse. Most of the 45 companies that received recommendations are eligible for first-level broker services based on the capital structure set by the board. The capital requirement for a new broker license has been fixed between Rs 200m to Rs 1.5bn. Brokers will be issued three different types of licenses based on their capital structure.