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Premier Li Qiang said on Monday he has full confidence in China's economic prospects, as he took questions from the media after the conclusion of the first session of the 14th National People's Congress, China's top legislature, China Daily reported. Responding to how to achieve an annual economic growth target of around 5 percent in 2023, Li said the country will introduce a number of policy combinations in terms of macro policies, measures for expanding demand, policies for advancing reform and innovation and policies for preventing and defusing risks. He said the global economic prospect is not optimistic this year with many factors of instability and uncertainty as well as unpredictable factors. China also faces quite a number of new challenges to achieve the around 5 percent growth target on a high base in the previous year, which is not an easy task and requires redoubled efforts, according to Li. When it comes to the drivers and drags on the Chinese economy, Li said China's economic development is supported by quite a number of favorable conditions, including an ultra-large market, a well-functioning industrial system, a rich supply of human resources, a strong development foundation and notable institutional strength, according to China Daily. Citing China's economic performance in the first two months of 2023, Li said the Chinese economy is stabilizing and picking up, and some international organizations have also upgraded their forecasts for China's growth prospects this year. Despite the challenges ahead, Li said he has full confidence in China's growth prospects in 2023.

Kathmandu: In consonance with the ‘Neighborhood First Policy’ there has been a continued momentum in bilateral ties with Nepal, India said in a report. An annual report prepared by the Ministry of External Affairs states that there has been substantial progress in greater connectivity—be it physical, economic, energy, digital, cultural, or focusing on infrastructure development and capacity-building. Since May 2014, there have been 15 exchanges at the head of the state/government level between the two countries. During this period, Indian Prime Minister Narendra Modi visited Nepal five times, while prime ministers of Nepal visited India eight times since Modi came to power. According to the report, in 2022, there were two back-to-back prime ministerial visits, with then Nepal PM Sher Bahadur Deuba visiting India in April 2022, and the Indian PM visiting Nepal in May 2022. One of the achievements of 2022 is the issuance of a joint vision statement on power sector cooperation. According to the report, there has been intense defense cooperation between the two countries. The report also highlights what it calls ‘further momentum’ in the power sector with Nepal. Nepal has become power surplus and started exporting power to India, the report states, adding that India has given Nepal the consent to export more than 400 MW to India. Nepal exported more than Rs 600 crores (Rs 6bn) worth of power to India this wet season. With this, electricity has become one of Nepal’s largest exports to India, the report says. Nepal is India’s 11th largest export destination, up from 28th position in 2014. In 2021-22, Nepal constituted 2.34 percent of India’s exports. The bilateral framework for trade is anchored on India-Nepal Treaty of Trade and Agreement of cooperation to control unauthorized trade, revised in 2009, both treaties were automatically renewed for a further period of seven years in October 2016. Nepal’s main imports from India are petroleum products, iron and steel, cereals, vehicles and parts, and machinery parts. Nepal’s major items of exports include soybean oil, spices, jute fiber and products, synthetic yarn, and tea.

Amid the news of three banks in the United States collapsing in the last one week, the Nepal Rastra Bank (NRB) on Sunday called Lender of Last Resort Policy 2023. The NRB has issued a Lender of Last Resort Policy whereby banks and financial institutions (BFIs) can take such a facility from the central bank paying an additional two percent penal rate to the prevailing bank rate. According to NRB Executive Director Prakash Kumar Shrestha, the policy has been amended to amend the regulation which was introduced in 2011. "The issuance of the policy has nothing to do with the collapse of the US banks," said Shrestha, "It's just a coincidence. The NRB board had already endorsed the policy in the last week of February." A lender of last resort facility is a financial instrument used by BFIs in case of extreme liquidity crisis when they are unable to return the deposits of the general public. Till now, only the then Vibor Development Bank has used it. The NRB, acting as a lender of last resort, extended a short-term loan of Rs 500m to the troubled Vibor Development Bank in 2011 and rescued it from an acute liquidity crunch under the Lender of Last Resort Policy 2011. The central bank provides the lender of last resort facility to BFIs, especially when they face a severe shortage of investment-grade liquidity. Earlier, the central bank used to provide such a facility at the prevailing bank rate. Now, NRB has said that a two percent penal rate will be added to the prevailing rate while providing a lender of last resort facility. According to the NRB, if BFIs are unable to manage the necessary liquidity through the interbank market, daily liquidity facilities, open market transactions, and standing liquidity facility (SLF), they can get such a facility from the central bank. The facility will be provided even if the BFIs are unable to meet their immediate obligations due to a lack of marketable assets. Similarly, even if the BFIs are unable to make payment of a large amount in deposits, they can ask the central bank for such a facility. Similarly, the NRB policy talks of providing this facility to BFIs if the economy and financial system face challenges due to systemic risk posed by a single bank, or if there is a decline in the trust of the general public towards the banking system, or if a bank is unable to pay immediate obligations due to natural disasters, and if it is unable to fulfill its immediate obligations due to national and international crisis and the bank is liquidated. Getting the lender of a last resort facility is not easy. The board of the problematic bank must submit an application to the central bank with reasons for seeking a lender of last resort as well as an action plan to revive the bank. The central bank will provide the facility only after it finds the bank can operate smoothly in the long run. Along with the application, a 6-month cash flow projection, statement of assets and liabilities of different periods, statement of deposits and other short-term liabilities, and an action plan for revival should also be submitted.

The Rastriya Janamorcha has decided to launch a nationwide campaign against federalism. The first meeting of the national council held in Butwal on March 11 and 12 has decided to launch a nationwide campaign against federalism. Rastriya Janamorcha Chairman Chitra Bahadur KC said that the party has decided to launch the campaign against federalism from March 24 to April 3. The Janamorcha has been carrying out campaigns against federalism.  

The price of gold has increased by Rs 1, 600 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 105, 700 per tola today. The gold was traded at Rs 104, 100  per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 105, 200 per tola. Similarly, the silver is being traded at Rs 1,300 per tola today.

It has been 14 years since the government started issuing foreign employment bonds with the aim of mobilizing remittances for the country's economic development. However, this has so far failed to woo migrant workers and Nepalis residing abroad to subscribe to foreign employment bonds as per the expectation of the government. In fact, the average subscription of foreign employment bonds stood at just 5.22 percent, show data published by the Nepal Rastra Bank (NRB). The subscription rate has ranged between 0.07 percent to 33.49 percent, depending on the volume of bonds issued. Despite relatively higher interest rates, subscription of the bonds by the Nepali migrant workers has remained dismal. On the behalf of the government, NRB issued fresh foreign employment bonds worth Rs 500m last week. The interest rate offered for the bonds for the next five years stands at 12.5 percent. The central bank officials are not sure whether the higher interest rate would be enough to attract subscriptions to foreign employment bonds. In fact, the interest rate offered for the subscription of foreign employment bonds has continued to remain on the higher side since its inception in 2010. “It has not been clear why subscription has continued to remain disappointing for years,” said a senior NRB official. “In fact, no thorough study has been conducted to identify the real reason behind disinterest in subscribing to foreign employment bonds despite very good interest rates.” When foreign employment bonds were first issued on July 16, 2010, the interest rate was offered at 9.75 percent. And, never in the last 14 years, the offered interest rate has not been less than 9 percent. In the FY 2009/10, bonds worth Rs 1bn were issued but there had been a subscription of Rs 4m. In the next FY 2010/11, the government issued bonds worth Rs 5bn, of which Rs 3.38m worth units were subscribed, or 0.07 percent of the bonds issued. In the initial four years of its inception, bonds worth Rs 1bn were issued for three years and bonds worth Rs 5bn were issued in one year. Citing the poor response, the government started to decrease the size of the bonds in later years. The bonds worth Rs 250m to Rs 1bn were issued in the later years. In the last FY 2021/22, bonds worth Rs 500m were issued. But the subscription was worth Rs 56.7m only. The NRB official said that the lack of interest among migrant workers to buy bonds might be because it may not be on their priority list. “Most migrant workers prioritize running households, education and health of their children, buying a plot of land and building a modern house,” said the NRB official, adding, “Another factor might be the lack of financial literacy.” Foreign employment bonds cannot be purchased time and again. There is a certain window to buy such bonds. “They may not have money to buy the bonds when they are issued,” the official said. Even though remittances have been the main source of the foreign exchange reserves in the country for the last several years. Nepal’s remittance earnings increased 27 percent to Rs 689.88bn in the first seven months of the current FY 2022/23, as compared to the same period last year, according to NRB. The remittances have enabled the country to import goods by paying foreign exchange, and concerns are being expressed about its utilization in the non-productive sectors. The idea of introducing foreign employment bonds was conceptualized to utilize remittance for national development. “If we can create an environment where the migrant workers can subscribe to foreign employment bonds anytime in a year or extended period of time, there might be more subscription of bonds,” the NRB official said. “The government should itself be serious on the matter as it is its debt instrument.”  

The Nepal Stock Exchange (NEPSE) plunged by 24. 68 points to close at 1,951.21 points on Monday. Similarly, the sensitive index dropped by 5. 46 points to close at 386. 49 points. A total of 3,369,136 unit shares of 256 companies were traded for Rs 1. 16 billion. Meanwhile, Shuvam Power Limited was the top gainer today with its price surging by 9. 98 percent. Likewise, Khaptad Laghubitta Bittiya Sanstha Limited was the top loser with its price dropped by 7. 62 percent. At the end of the day, the total market capitalization stood at Rs 2. 82 trillion.

CG|Motocorp and CG|NXTGEN, the authorized distributor of Suzuki four-wheelers for Nepal, has launched Grand Vitara and Brezza in the Nepali market. "The Grand Vitara is a legendary vehicle from the Suzuki stable. The new avatar features Suzuki's signature crafted futurism design language, with distinct exterior and premium interiors," the company said in a press statement. According to the statement, the Grand Vitara's off-road capability is boosted by Suzuki All Grip Technology while offering segment-leading features. The SUV also features the fuel-efficient revolutionary Full Hybrid Powertrain. The new Brezza, on the other hand, is a new generation of one of the largest-selling SUVs in Nepal. The SUV is equipped with a bouquet of cutting-edge technologies along with next-gen comfort and convenience features. Taking a major leap forward, this sporty SUV offers a stylish and exciting new design, powerful performance, and advanced safety features. According to the company, the new Brezza is loaded with hi-tech features that come really handy when driving in the city and offroad. The company believes these two new vehicles will strengthen Suzuki's presence in the ready competitive SUV segment while offering the best in class features, safety, and technology. "SUV has seen high growth in Nepal, especially due to the different driving conditions we have here. The customers have shown a strong inclination towards an assertive design, a dominant road presence, and new-age technology. The new Grand Vitara and Brezza will be game changers with their many segment-first features, advanced technological offering, premium interiors, and strong presence," said Karan Chaudhary, Executive Director of CG|Motocorp. The company said the new Grand Vitara comes up with artfully designed exteriors and interiors, and revolutionary technology catering to the new-age customers’ needs. The SUV is equipped with Next-gen technologies such as colored heads-up display, 360 view camera with approaching object detection and dynamic reverse gridlines, a Smart Play Pro+ infotainment system, and a Qi-certified wireless charger with an LED indicator. It features a panoramic sunroof, an all-new full digital instrument cluster, and driver and co-driver ventilated seats. Built on the acclaimed Suzuki TECT platform, the Grand Vitara is secured with the Suzuki Safety Shield. It is equipped with six airbags (front, side and curtain), an electronic stability program with hill hold assist, 3-point ELR seat belts, and rear disc brake across all variants. Similarly, the new Brezza has modern and spacious interiors with dual-tone black and new rich brown interiors (dynamic honeycomb pattern) for a sporty and urban feel. The SUV has distinct interior ambient lighting for a sophisticated cabin experience, a wider instrument panel and wider rear seats for comfortable long drives. The new Brezza also boasts a colored heads-up display, 360 view camera with approaching object detection & dynamic reverse gridlines, and a 9-inch Smart Play Pro+ infotainment system. The SUV is also packed with safety features such as six airbags, an electronic stability program with hill hold assist, reverse parking sensors, and a high-speed alert system, among others. Pricing Details