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Nepal Bankers' Association (NBA) has decided to slash the interest rate of savings while keeping the interest rate of fixed deposits unchanged. The new rate will come into effect from March 15. A meeting of the NBA on Thursday decided to reduce the interest rate of saving deposits as well as call deposits. The bankers have also agreed to reduce the loan premium rate. The NBA decided to cut the interest rate on saving deposits by 0.42 percentage points. Currently, the interest rate on saving deposits ranges from a minimum of 6.42 percent to a maximum of 8.42 percent. This means the interest rate on saving deposits will be in the range of 6-8 percent from mid-March. Banks have also agreed to reduce the interest rate of call deposits by 0.21 percentage points which currently stands at 3.21 percent. Now, they have agreed to fix a 3 percent interest rate on call deposits. However, bankers have kept the interest rate on fixed deposits unchanged for the time being. The bankers did not change the interest rate on fixed deposits fearing that such a move could infuriate the depositors and lead to the withdrawal of deposits. "In that situation, there would again be pressure on the liquidity situation. Keeping that in mind, the interest rate on fixed deposits has been kept unchanged," said Sharma. The banks had reduced the interest rate on fixed deposits to 11 percent in Falgun (mid-February to mid-March) from 12.13 percent. Bankers have also decided to reduce the loan premium rate by 1 percentage point. At present, banks have been determining the interest rate of loans with a premium of up to 6 percentage points on the base rate. Now, banks have agreed to determine the interest rate by adding a maximum of 5 percentage points to the base rate from mid-March. Banks were increasingly criticized for charging high premiums on loans as some of the banks' premiums were as high as 8 percent. With banks deciding to reduce the interest rate on savings, the interest rate on loans will also decrease in the coming days. The share of savings and call deposits in the total deposits of banks is about one-third. As the interest rate on deposits declines, it will bring down the banks' expenses to some extent. According to Anil Sharma, executive director of NBA, the meeting decided to reduce the interest rate to provide relief to the borrowers. "Lately, the borrowers are finding it difficult to pay the installments. Hence, we have decided to cut the interest rate on savings and call deposits which will lead to a reduction in the interest rate of loans," said Sharma. Amid the increasing discontent of the private sector over interest rates, and the rage of businesspersons spreading across the country in recent months, banks were under pressure to reduce the interest rates. With higher interest rates on lending making loans costlier on one hand and drying up the demand for loans on other hand, bankers have reached a conclusion to make loans cheaper. The private sector organizations have been complaining that many small and medium enterprises have been pushed to the wall by increased interest rates just as they were emerging from the pandemic. Last November, members of the business community took to the streets against the high-interest rates charged by banks and financial institutions. The interest rate cut was the top agenda of the private sector when they met Prime Minister Pushpa Kamal Dahal last week and Nepali Congress leader Shekhar Koirala on Tuesday. As the loan interest has become expensive, some businesspersons led by controversial businessman Durga Prasain have initiated a campaign of not repaying the loans. On the other hand, there is also pressure on the government and the Nepal Rastra Bank (NRB) to revitalize the market and the economy by reducing interest rates.

With Nepal no longer buying vaccines for Covid-19, Nepal’s imports of pharmaceutical products have sharply decreased in the current fiscal year. According to the Trade and Export Promotion Centre (TEPC), the import of pharmaceutical products declined by 48.1 percent during the first seven months of the current fiscal year. TEPC data shows Nepal imported pharmaceutical products worth Rs 25.29bn during the first seven months of FY 2022/23 compared to Rs 38.75bn during the same period of FY 2021/22. “One of the major reasons behind the decline in pharmaceutical products appears to be a decrease in import of vaccines in the current fiscal year,” said a senior official of the Department of Customs. “But we have to see the statistics to confirm if it is the only reason.” In the last fiscal year, Nepal’s major focus was on vaccinating the population against Covid-19. Nepal was importing vaccines either by purchasing or receiving them under grants from various countries or international agencies. Now, the country's majority of the population has been fully vaccinated and Covid-19 cases also appear in insignificant numbers, Covid vaccines are not being brought into the country. This has brought down the total imports of pharmaceuticals. In the last fiscal year, Nepal imported pharmaceutical products worth Rs 71.93 billion, a rise of 97.78 percent from Rs 36.37bn in the previous fiscal 2020/21. “Nepal has been receiving the Covid-19 vaccines free of cost under the COVAX,” said a senior official of the Department of Health Service. COVAX is a global initiative aimed at equitable access to Covid-19 vaccines. Nepal spent a lot of money purchasing vaccines last fiscal year 2021/22. But, the value of vaccines that are received in grants is included in the accounting of imports, according to customs officials. With the Covid-19 pandemic no longer considered a major public health threat at the moment, government spending on controlling the pandemic has slumped this fiscal year. On Wednesday, Nepal reported a single Covid case and only four active cases. However, an official of the Department of Health Services said that along with the decline in Covid-19 cases, Nepal’s spending on prevention, control, and treatment of the pandemic has also declined sharply. During the first six months of the current fiscal year, the government spent Rs700,000 for the purpose, according to the mid-term review of the budget for FY 2022/23. The government has allocated Rs 15.47bn for the purpose in the current fiscal year 2022/23. “Even though there has not been fresh spending from the dedicated budget for Covid-19, many activities are underway against Covid-19 through the regular health budget too,”  a senior official of the Department of Health Services. “Nevertheless, low spending of dedicated budget shows that Covid-19 is more or less under control. But it has not been eliminated yet.” Meanwhile, the import of medical equipment has also decreased during the first half of the current fiscal year. According to the Nepal Rastra Bank statistics, the import of medical equipment from China has decreased by 2.2 percent to Rs 2.74bn and imports from the third countries decreased by 27 percent to Rs 4bn.  

The Inland Revenue Department (IRD) has started a study after it was found that the number of taxpayers filing income details has declined in the fiscal year 2021/22 compared to FY 2020/21. According to IRD, the number of taxpayers filing their income details has decreased significantly in FY 2021/22. The income statement for each fiscal year should be filed in the tax office within three months ( by mid-October) of the end of the fiscal year. According to IRD sources, taxpayers have not submitted their details even after the extension of the deadline i.e., mid-January, 2023. Tax officials say they are looking into the matter seriously, especially after the income tax collection remained lower than the target. IRD had targeted to collect income tax worth Rs 157bn in the first half of the current fiscal year. However, it succeeded in collecting only 74.30 percent of the target i.e. Rs 116.79bn during this period. As the income tax collection declined, the department suspects that taxpayers are not filing statements. The initial assessment of the department also showed some taxpayers did not file income statements. According to the department, taxpayers are still filing their VAT returns with the tax office but the income statement and tax have not been filed so far. Raju Pyakurel, information officer of IRD said the department is collecting detailed information. "After the tax collection remained lower than the target, we did a preliminary study about it. While taxpayers were doing business, it was seen that income statements and tax details were not filed," he said, "Hence, we have initiated further study." The department has recently issued a notice requesting such taxpayers to file their income statements and tax as soon as possible. The department has warned that if income tax statements are not filed, taxpayers will be investigated and action will be taken according to the prevailing law. Dirgharaj Mainali, director general of IRD, said that a notice has been issued to taxpayers requesting them to file income statements and taxes. "Taxpayers used to delay in filing the details even earlier. This time also, some taxpayers have not filed income statements," he said, " This is in the interest of businessmen. Because, the more they delay in filing statements, the more fine they will have to pay." According to Mainali, the department has also requested the private sector organizations for facilitation. "We have requested the FNCCI and other business organizations to facilitate and they are positive about it," he said, "We will also formally and informally urge the concerned businessmen through tax offices." The department officials say the decline in tax filing could be due to the slowdown in economic activities. As businesses grapple with multiple issues ranging from decreased demand to higher interest rates, and price rises, the cash flow in the market has declined. A senior official of the department said that the number of taxpayers filing statements may have decreased due to these reasons. "Taxpayers may also be thinking that they would pay the tax amount later." Taxpayers can submit only the income statement for now. There is also the facility of paying taxes in installments," said the official.  

The price of gold has increased by Rs 800 per tola in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 101, 800 per tola today. The gold was traded at Rs 101, 000 per tola on Thursday. Meanwhile, tejabi gold is being traded at Rs 101, 300 per tola. Similarly, the silver is being traded at Rs 1,220 per tola today.

A meeting of the Maoist factions has decided to hold a joint interaction and press conference on the issue of war-era incidents. A meeting held at the Prime Minister’s official residence in Baluwatar made the decision to this effect. The meeting has decided to hold the press conference on March 12 and joint interaction on March 14. Civil society leaders, law practitioners, journalists and stakeholders related to the peace process will take part in the interaction. The Maoist factions have become united to conclude the peace process at the earliest and to continue the campaign in favor of the peace process. Talking to journalists after the meeting, CPN (Maoist Center) General Secretary Dev Gurung said that they would confront the activities against the peace process. The Maoist factions have become united after writ petitions were filed against CPN (Maoist Center) Chairman Pushpa Kamal Dahal. Leaders of CPN (Maoist Center), CPN (Revolutionary) Maoist, Nepal Community Party and Baigyanik Samajbadi Party among other parties took part in the meeting.

Xi Jinping has been handed an unprecedented third term as president, capping a rise that has seen him become China’s most powerful leader in generations, The Guardian reported.

In a carefully choreographed ceremony in Beijing, Xi held up his right fist and placed his left hand on a red leather copy of China’s constitution.

In the oath - beamed live on state television across the nation - he vowed to “build a prosperous, strong, democratic, civilized, harmonious and great modern socialist country”.

The appointment by China’s rubber-stamp parliament comes after he was handed another five years as head of the Chinese Communist party (CCP) and the military – the two more significant leadership positions in Chinese politics – in October.

Those issues have been avoided at this week’s National People’s Congress (NPC), a closely watched event that over the next two days is also set to appoint Xi ally Li Qiang as the new premier, putting him in charge of managing the world’s second largest economy, according to The Guardian.

The lawmakers have focused instead on a sweeping revamp of Beijing’s science ministry and tech capabilities in the face of what one NPC deputy described as foreign attempts at “containment and suppression” of the country’s rise.

The body on Friday passed reforms to government institutions unveiled earlier this week, including a sweeping overhaul of the country’s science and technology ministry in the face of what one NPC deputy described as foreign attempts at “containment and suppression” of the country’s rise. New reforms also included the formation of a financial regulatory body and national data bureau.

The beginning of China’s new political term also saw former vice premier Han Zheng elected as its new vice-president and Zhao Leji, former chief of the party’s top anti-corruption commission, as the new parliamentary chair. Both are members of China’s highest political decision-making body, the Politburo Standing Committee. The election process, carried out at the Great Hall of the People at Beijing’s Tiananmen Square, lasted around an hour.

Xi’s reelection is the culmination of a remarkable rise from a relatively little-known party apparatchik to the leader of a global superpower.

For decades China - scarred by the dictatorial reign and cult of personality of founding leader Mao Zedong - has eschewed one-man rule in favour of a more consensus-based, but still autocratic, leadership.

That model imposed term limits on the largely ceremonial role of the presidency, with Xi’s predecessors Jiang Zemin and Hu Jintao relinquishing power after 10 years in office.

Xi has torn up that rulebook, abolishing term limits in 2018.

His coronation this week sets him up to become modern China’s longest-serving head of state, and will mean Xi will rule well into his seventies and - if no challenger emerges - even longer.

But the beginning of his unprecedented third term leading China comes as the world’s second-largest economy faces major headwinds, from slowing growth and a troubled real estate sector to a declining birthrate.

Relations with the United States are also at a low not seen in decades, with the powers sparring over everything from human rights to trade and technology, according to The Guardian.

In a speech to delegates at the Chinese People’s Political Consultative Conference (CPPCC), which runs alongside the NPC this week, Xi criticised Washington’s “containment, encirclement and suppression of China”.

China, he said, must “have the courage to fight as the country faces profound and complex changes in both the domestic and international landscape”.

Xi will make a speech on Monday before the annual parliamentary session closes, as China faces multiple challenges including an economy hobbled by three years of Covid curbs and worsening relations with the West.

Speaker of the House of Representatives (HoR) Devraj Ghimire held a meeting with President-elect Ram Chandra Paudel. During the meeting, he congratulated Paudel on his election to the post of President and wished for a successful tenure. Nepali Congress senior leader Paudel was elected as the President in the election held on Thursday. Paudel was a joint candidate of CPN (Maoist Centre), CPN (Unified Socialist), Janata Samajwadi Party Nepal, Loktantrik Samajbadi Party Nepal, Janmat Party, Nagarik Unmukti Party, Rastriya Janamorcha and Nepal Samajwadi Party along with his party, the Nepali Congress. On the occasion, Speaker Ghimire informed the President-elect about his upcoming visit to Bahrain. He is leaving for Bahrain to take part in the 146th Assembly of the Inter-Parliamentary Union (IPU). The 146th Assembly is being held in Manama, Bahrain from March 11-15. Speaker Ghimire's Press Advisor Shekhar Adhikari said that the Speaker also informed President-elect Paudel that he would not be able to attend his swearing in ceremony as he has to leave Bahrain to take part in the program. Meanwhile, Paudel expressed his greetings for the success of the IPU Assembly.

The Constitution of Nepal has envisaged the President as the symbol of national unity, the defender and protector of national unity. But have the holders of the highest office been able to live up to these provisions? Some serious soul-searching has become necessary, in light of the fact that the two Presidents have courted their share of controversies, fair or otherwise. While they had a golden opportunity to preside over a country transitioning from a unitary system to federalism by becoming the protector and the defender of the Charter and a true symbol of national unity, they faced charges of failing to rise above partisan interests and even intruding into the domain of the executive and the legislative. This does not mean that the first citizen of the country should keep mum even when the executive, powered by a majority in the parliament, tramples on civil liberties and attacks the very tenets of democracy. The institution should not only play by the rules, but should also be seen as doing the same, to retain public faith in the new system. There are ample examples from the neighborhood and beyond of political figures rising above petty interests and steering a country in transition. So, the argument that a political figure cannot be a true symbol of national unity cannot be entirely true, to say the least. The onus is on the third President to learn lessons from the predecessors and best practices in the neighborhood and much beyond. Only by rising above petty interests and adhering to the Charter in its letter and spirit can the head of state earn moral authority to make the executive and the legislature stay within their respective bounds. Only by staying away from controversies can the institution transform into a symbol of national unity. This is especially important at a time when certain forces are yearning for olden days and olden days. Their voices will only get stronger if the political system of the day fails to deliver. As the guardian of the Constitution and the country, the President should be able to instill faith in the new system of governance, especially at a time when it is at its lowest lows. The onus is on the President of Nepal to do no wrong, for the sake of the country, the people and the longevity of the system.