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Insurance companies are now required to allocate one percent of their net profit to corporate social responsibility (CSR) activities. Amending the Corporate Governance Directives 2075, Nepal Insurance Authority (NIA) on Tuesday instructed the life insurance, non-life insurance, and reinsurance companies to allocate one percent of profits by creating a CSR fund. Till now, insurers have been spending funds for CSR in their own way. Now the NIA has made the creation of CSR funds mandatory and also specified the areas where the companies should spend the CSR money. According to Raju Raman Paudel, Executive Director of NIA, insurance companies have now been instructed to allocate money for CSR funds. "Earlier, insurers used to spend money in the CSR activities on their own," said Paudel, adding, "Now onwards, they have to create a fund from one percent of their net profit." According to the NIA, insurance companies have been mandated to use CSR funds for social projects. The directive states that CSR funds should be spent on education, health, natural disaster management, increasing the income-generating capacity of socially disadvantaged groups, insurance literacy, customer protection programs, and programs related to insurance for marginalized groups. Similarly, insurance companies can set up child daycare centers in their offices for the children of their employees through CSR funds. However, insurers have been barred from using CSR funds for the company's brand promotion activities. Insurance companies will have to spend expenses related to CSR proportionally to geographical areas and sectors. Such CSR spending should not be concentrated in one specific geographic region or sector. The directives have also barred the board of directors of insurance companies from spending CSR money for personal or political gain. The boards of the companies have been instructed to create and implement a separate procedure covering the areas identified for corporate social responsibility, the process of evaluating the proposal received for spending in that area, the operation, and management of the fund, etc.

Nepal thrashed Malaysia by 10 wickets in a match played today under the ICC U-19 Men's World Cup Asia Qualifiers tournament underway in the United Arab Emirates (UAE). With this victory, Nepal registered the fourth consecutive win in this tournament. Before this, Nepal defeated Singapore, Kuwait and Hong Kong. In the match played at the Maleka Cricket Stadium in UAE today, Nepal achieved the 73-run target in nine overs without losing any wickets. Nepal's both openers were not out. Deepak Bohara scored 38 runs while Arjun Kumal made 21 runs. Malaysia, who won the toss and elected to bat first, scored 72 runs in 35.3 overs, losing all wickets. Akram Malek made 26 runs while Mohammad Harrison and Mohammad Syahir Syamil scored 12 runs each. Deepesh Kadel of Nepal took four wickets while Akash Chand claimed Malaysian Similarly, Milan Bohara and Subash Bhandari took two and one wickets respectively. Nepal will play their last match against the UAE on March 2. Along with Nepal, Singapore, Kuwait, Hong Kong, Malaysia and the hosts UAE are taking part in the tournament. The winner of this tournament being held on the Round-Robin basis will qualify for the U-19 World Cup Championship to be held in Sri Lanka in 2024.

The Nepal Stock Exchange (NEPSE) plunged by 3. 61 points to close at 2,019.93 points on Tuesday. Similarly, the sensitive index dropped by 1. 07 points to close at 381.94 points. A total of 3,946,024 unit shares of 262 companies were traded for Rs 1. 38 billion. Meanwhile, Adhikhola Laghubitta Bittiya Sanstha Limited, Adarsha Laghubitta Bittiya Sanstha Limited and Khaptad Laghubitta Bittiya Sanstha Limited were the top gainers today with their price surging by 10. 00 percent. Likewise, Premier Insurance Company Limited was the top loser with its price dropped by 3. 85 percent. At the end of the day, the total market capitalization stood at Rs 2. 91 trillion.

With the sharp slowdown in economic activities, the country's economic growth has fallen even lower than during the Covid-19 pandemic. According to the National Statistics Office (NSO), Nepal's economy grew by a meager 0.8 percent in the first quarter of the current fiscal year 2022/23 compared to 0.9 percent in the corresponding period of FY 2020/21 when the impact of the Covid-19 epidemic was intense. The slump in the construction and mining sectors, along with minimal growth in the agriculture and manufacturing sector dragged down the overall economic growth. The NSO report shows the mining sector logged a negative growth rate of 29.2 percent while the construction sector's growth is negative by 24 percent. Similarly, the agriculture sector grew by only 1.6 percent while the manufacturing sector grew by 1.9 percent. The first quarter of the fiscal year is generally the main season for wholesale and retail trade. As major festivals fall in this quarter, business activities generally increase. However, no such growth in business activities was seen this year as wholesale and retail trade recorded a negative growth of 3 percent. The mining and construction sector have been going through a prolonged slump due to a sharp decline in the demand for cement, steel, and other construction materials. The demand for cement, steel, sand, and other construction materials has decreased with a slowdown in construction activities in the country. The decline in public construction and the downturn in private house construction have resulted in a decrease in the consumption of construction materials. Economists say a low economic growth rate indicates economic activities are not sufficiently dynamic and the economy is not expanding. The country's private sector has been complaining that the crisis in the financial system has affected the demand and supply chain of the economy and the NSO report has reiterated this as a fact. The government has always struggled to expedite the development and construction works in the first quarter, but the private sector's activities were hard hit by the liquidity crunch, higher interest rates, rising prices, and falling demand. The only silver lining is, the hotel and restaurant service sector's growth has increased by 45.8 percent in the first quarter of this fiscal year compared to a decline of 4.5 percent in the first quarter of last fiscal year. With the impact of the Covid-19 pandemic subsiding, the hospitality sector is vibrant with an increase in tourism activities.   Sector-wise Growth

A team of Armed Police Force confiscated a huge cache of marijuana from Narakatiya in Harinagar Rural Municipality-5 of Sunsari district. A mobile team deployed from Basantapur BoP of the Armed Police Force seized marijuana at around 10 pm on Monday. Armed Police Force Province 1 Chief DIG Kamal Giri said that a team led by Assistant Police Inspector Suman Ranabhat confiscated the 258 kg marijuana yesterday. The team seized the marijuana from a Scorpio Jeep bearing Indian registration number plate BR 1 AK 7100 heading towards Ghuski from Bhutaha. The jeep driver, however, fled the scene, police said. Police have handed over the seized marijuana to the District Police Office, Sunsari.        

Nepal is expected to make slower progress in meeting criteria related to graduation of the country from the Least Developed Country (LDC) to the Developing Country (DC) in the next fiscal year 2023/24 compared to the earlier estimate, according to a new report of the National Planning Commission (NPC). The National Resource Estimate Committee headed by the NPC Vice Chair Min Bahadur Shrestha made a downward revision in all criteria of LDC graduation but said it would not go below the threshold set by the United Nations. In November 2021, the United Nations General Assembly approved a proposal to upgrade Nepal from an underdeveloped country to a middle-income developing country by 2026. The 40th plenary of the 76th Session of the United Nations General Assembly (UNGA) unanimously adopted a resolution endorsing the graduation of Nepal from the LDC category with the preparatory period of five years, according to a statement issued by the Permanent Mission of Nepal to the United Nations in New York. The decision to graduate from Nepal was taken based on Nepal’s progress in two out of three areas, namely the human asset index and the economic vulnerability index. However, the country has long been struggling to meet the criteria related to per capita income, the third component. According to its committee's estimate, Nepal’s per capita income will reach USD 1,572, down from USD 1,595 estimated while preparing the three-yearly Medium-Term Expenditure Framework (MTEF) in the fiscal year 2020/21. The MTEF had estimated progress in the number of economic sectors for the fiscal years 2021/22, 2022/23, and 2023/24. Likewise, Nepal’s score in the economic vulnerability index is estimated at 23.5 in the next fiscal year, up from an earlier estimate of 23. As per the UN criteria, the threshold for LDC graduation is below 32. “Nepal’s economy is vulnerable due to high dependence on imports, particularly that of agricultural goods imports and climate change,” said an expert. Nepal’s dependence on imports for revenue has been exposed as import restriction measures resulted in a massive slump in the government’s revenue. When it comes to the human asset index, Nepal is set to score 77 from an earlier estimate of 78 under MTEF. In order to graduate from LDC, this score should be above 66. “Covid-19 affected the human development performance on which Nepal has been performing very well in recent years,” the expert said. Nepal’s economy suffered badly from Covid-19, and after recovering from the pandemic, the emergence of a massive balance of payment deficit and a liquidity crunch in the last one and a half years. Now, the country is facing a fiscal deficit with revenue insufficient even to finance the administrative expenditures of the government. The Shrestha-led committee has decreased the estimated resource collection by the government in the next fiscal year 2023-24 by over Rs 300 billion compared to its earlier estimate while preparing the medium-term expenditure framework in fiscal 2020-21. The committee made the downward revision in earlier estimates as the government has been witnessing a sharp decline in revenue collection. The committee has estimated the resource generation of Rs 1688.4 billion for the next fiscal year, which is less than Rs 309.4 billion against the earlier estimate of Rs 1997.8 billion as per the three-year Medium Term Expenditure Framework. The government’s revenue, foreign grants and loans, and internal loans are sources of the government’s resources. Even when the government prepared the MTEF in the fiscal year 2020/21, an ambitious estimate of resource collection was not made citing the impacts of the Covid-19 pandemic on the economy. The committee has estimated the revenue collection to decline by 2.5 percent in the current fiscal year from the growth of 30.5 percent in the last fiscal year. The revenue has not been enough even to cover the recurrent expenditure of the government so far. As of February 25, the government collected revenue of Rs 535.82 billion while recurrent expenditure by the same date stood at Rs 555.57 billion, according to the Financial Comptroller General Office (FGCO). The revenue collection declined by Rs 104 billion by February 25 this fiscal year compared to the same period last fiscal year. Considering these factors, the government has already made a downward revision of revenue collection through the mid-term review of the budget.

The Election Commission has made public the code of conduct for the election of President and Vice-President on Tuesday. The code of conduct will come into effect from tomorrow, the EC said. The poll body said that the code conduct was published in the Nepal Gazette on August 29. The code of conduct would apply to Nepal government, ministers, staffers of federal, provincial and local governments, security agencies, security personnel, civil servants, candidates, representatives of the candidates, political parties, their sister organizations, people holding public posts, voters and media persons among others. The Election Commission is scheduled to publish the final list of the candidates who have registered their nominations for the presidential election today. Nepali Congress senior leader Ram Chandra Paudel and CPN-UML leader Subash Nembang have filed their candidacies for the election. The election is scheduled for March 9.

Rajan Mukarung is a renowned Nepali writer and novelist. He was awarded the Madan Puraskar for ‘Damini Bhir’ in 2012. He is also one of the initiators of ‘Srijanshil Arajakta’ a literary movement to make Nepali literature more inclusive of ethnic identities. Slesha Adhikari from ApEx talks to Mukarung to find out more about his love for writing and literature. What made you want to write and tell stories?  When I was in the fifth grade, I came across a children’s book called ‘Chamkila Rato Tara’. My wish was to be like one of the characters in the book. For someone who was always into writing from a young age, the book was quite influential. After that, I realized I had to do something for myself too, which is when I started jotting down all my emotions to set them free. Writing was my way of expressing and, in time, that way of expression became my career. Did you always want to become a writer? None of this was planned, although when I think about it, it was quite obvious that I wanted to be a writer. I started reading voraciously when I was in the ninth grade. Whenever I read books or poems, I always thought about what it would be like to be a published author. I was already into writing, so it seemed like an achievable dream. But my interest was not just limited to that. I also wanted to become a singer and a theater artist. I was involved in the Nepali music industry for a while too. But, after coming to Kathmandu, music sort of took a backseat, and I pursued writing as a career. Where do you get your inspiration?  I’m very observant. So, most of my writings are inspired from what I see in Nepali society. Every individual has his/her own story to tell, and a lot of them are still struggling to make a living. They have their own ups and downs in life and stories that might include war, love, fear and sorrow. Being a diverse country, there are so many languages, caste, culture, and tradition I can draw my inspiration from for a book. I feel like I have been given a platform to bring those hidden stories to the forefront and that inspires me to write. You were awarded the Madan Puraskar for Damini Bhir. How do you feel about it?  Damini Bhir was my way of making people aware about the kind of suffering that still exists in Nepali society, especially for ones who belong to marginalized communities. For many, their struggles are unimaginable. They suffered the most, especially during the civil war, which is briefly explained in the book. I believe their stories deserve to be heard. The whole purpose of the book was to uplift the marginalized community and make people empathize with what the community has had to go through. The main reason for writing Damini Bhir was to give a voice to the voiceless and I’m happy to have achieved that to a certain extent. What books top your list of favorites?  There are a lot of beautifully written Nepali books. Every book has its own uniqueness. But since I’m more into the ones that highlight the changes happening in our society, my first pick would be ‘Aaja ko Marxbad ra Nepali Kranti’ by Ghanashyam Bhusal. It’s a political book, so it might not be for everybody but it’s definitely worth a read. I also really like ‘Understanding the Maoist Movement of Nepal’. It’s a collection of stories during the Maoist insurgency that shed light on some of the facets of Nepal’s internal conflict. Another great read is ‘Maile Dekheko Nepal’ by Harka Gurung. All these books are really good if you want to develop a deeper understanding of why the Nepali society is the way it is and how it functions. What’s your take on the Nepali literary scene? What improvements would you like to see?  With everything going digital, Nepali literature has, for a very long time, been slightly overshadowed. There are many authors with a lot of talent, but they haven’t received much attention. Our society is slowly shifting away from Nepali literature, so we need to work on increasing reader engagement. I also believe writers need to understand what readers are looking for. Most people, in my opinion, want books to tell stories from different corners of Nepal, stories that are usually hidden. I wish for more characters that readers can identify and empathize with. If you think about it, those are the kinds of books that have gained a lot of popularity too. So, we must tell stories that are important, ones that jostle the readers a little. Mukarung’s picks  Aaja ko Marxbad ra Nepali Kranti ‘Aaja ko Marxbad ra Nepali Kranti’ by Ghanashyam Bhusal is a book that relates Nepali revolution and political changes with Marxism. It’s a book for the ones who want to have a better understanding of the second people’s movement in the year 2007. Understanding the Maoist Movement of Nepal This is yet another book that highlights the political shift that Nepal has witnessed during the Maoist insurgency. It’s a collection of writings taken from various sources, providing a wide range of perspectives on the Maoist insurrection to inform readers of the many facets of Nepal's internal conflict. It analyzes and explains the failure of the state to meet the aspirations of a people emerging from an authoritarian regime. Maile Dekheko Nepal ‘Maile Dekheko Nepal’ by Harka Gurung, which reads like a travel memoir, is a book that reflects on culture and tradition of various parts of Nepal, making it an important literature for anyone willing to know more about the Nepali society. Divided into twenty chapters, this book contains travel experiences of Gurung himself and socio-culture characteristics of several districts, especially the ones located in the Himalayan region.