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Soaring global prices of commodities such as crude and edible oil are adding to the pressure on Nepal's foreign currency reserves amid a decline in remittances and tourist earnings, Reuters reported.

Nepal has imposed restrictions on imports of cars, gold, cosmetics and other non-essential items to protect its dwindling reserves. Critics say it could face an external payments crisis, though the government rejects this.

Nepal's import bill rose 38.6% to 1.31 trillion Nepali rupees ($10.8 billion) in first eight months of the financial year that started in mid-July, forcing the government to dip into foreign currency reserves amid sluggish export earnings.

Economists at the Asia Development Bank have warned higher oil and other commodity prices could push up domestic inflation, and add to pressure on external trade. However, the country doesn't face a situation like Sri Lanka, which has warned of a sovereign default, according to Reuters. 

Here are key economic factors that are raising concerns for the Himalayan country, among the poorest in the world:

FOREX RESERVES

Gross foreign exchange reserves fell to $9.6 billion as of mid-March, down 18.5% from mid-July.

The reserves are sufficient to support imports for a little more than six months for the country of around 29 million people, where India and China jostle for influence.

DECLINE IN REMITTANCES

Remittances by Nepali workers, which constitute nearly a quarter of the economy and are crucial for external payments, fell 3.0% to $5.3 billion between mid-July to mid-March, compared with a 5% increase in the same period a year earlier.

While earnings from tourism, which fell sharply after the start of the pandemic in 2020, are slowly picking up, they remain well below pre-COVID levels.

WIDENING TRADE DEFICIT

The trade deficit rose 34.5% year-on-year to 1.16 trillion Nepali rupees ($9.52 billion) in the first eight months of the fiscal year as growth in exports failed to keep pace with surging imports.

RISING GOVERNMENT DEBT

Nepal's government debt increased to 41.4% of gross domestic product in the 2021 fiscal year, from an average of 25.1% between 2016 and 2019, due to increased spending during the pandemic.

HIGH INFLATION

Annual consumer price-based inflation has accelerated to 7.1% in mid-March, a five year high, pushed by rising crude oil and other commodity prices, compared with an average of 5.18% in the past three years.

PRESSURE ON BALANCE OF PAYMENTS

Nepal's balance of payments were in a deficit of $2.17 billion in the first eight months of this fiscal year, compared with a surplus of $565.8 million in the same period a year earlier.

The government has appointed Pushpa Ram KC as the Inspector General of Armed Police Force (APF).

A Cabinet meeting held on Wednesday morning decided to appoint KC as the Inspector General of APF.

Home Minister Bal Krishna Khand had proposed the government to appoint KC as the Inspector General.

He was appointed the Inspector General following the retirement of Shailendra Khanal. 

KC is also getting compulsory retirement on May 1 as per service limit.

CPN (Maoist Centre) Chairman Pushpa Kamal  Dahal has removed the photo of Kulman Ghising, Managing Director of Nepal Electricity Authority (NEA), from the election poster following widespread criticism.

He was criticized from various walks of life for using the photo of a government staffer in the election poster.

The party was also criticized on social media after the cadres started canvassing votes by using the photo of Ghising

The Election Commission has banned the government employees from participating in the campaign of local level elections.

Later, the party exited the poster and removed the photo of Ghising.

The photo of former Energy Minister Janardan Sharma has also been removed from the poster.

Two persons died and seven others sustained injuries when a jeep they were traveling in met with an accident at Bandrebhir near Hilepani in Okhaldhunga on Wednesday.

Among the injured, four are said to be in critical condition.

It has been learnt that all the victims were policemen heading towards Biratnagar in Province-1 from Solukhumbu.

DSP Sukdev Khanal of the District Police Office, Okhaldhunga said that details of the incident are yet to come.

Preparations are being made to send critically injured to Kathmandu via helicopter.

With Real Madrid looking beaten and on the verge of elimination after a fierce comeback by defending champion Chelsea, Karim Benzema came up big once again in the Champions League, Associated Press reported.

Having scored a hat trick in the first leg to give Madrid a 3-1 lead, Benzema spoiled the English team’s comeback by netting the decisive goal in extra time on Tuesday to put the Spanish club back into the semifinals. After trailing 3-0 at home, Madrid pulled two goals back to secure a 5-4 aggregate victory despite a 3-2 loss at the Santiago Bernabéu Stadium.

“It was another incredible night at the Bernabéu,” said Madrid midfielder Luka Modric, who set up the hosts first goal. “We suffered but we never gave up. We kept fighting until the end and managed to advance. We gave everything we had and showed great character.”

Benzema also saved Madrid in the round of 16 by scoring a second-half hat trick in a 3-1 win against Paris Saint-Germain after Madrid had lost 1-0 in Paris and conceded early at the Bernabéu, according to the Associated Press.

Benzema’s 12th Champions League goal this season came with a header off a cross by Vinícius Júnior six minutes into extra time.

The hosts had looked defeated after going down 3-0 in regulation, but substitute Rodrygo evened the aggregate score in the 80th and Madrid found a way to reach the last four for the 10th time in the last 12 seasons.

Chelsea had overpowered Madrid early and built a lead through goals by Mason Mount in the 15th, Antonio Rüdiger in the 51st and Timo Werner in the 75th.

“Not many teams can come here and dominate them, as we did,” Rüdiger said. “Over the two legs, if you make the type of mistakes that we did, you get punished.”

Madrid will next face either Manchester City or Atlético Madrid, which play on Wednesday in the Spanish capital with City defending a 1-0 lead from the first leg.

Madrid coach Carlo Ancelotti has reached the Champions League semifinals for the eighth time as a manager, equaling the record held by José Mourinho and Pep Guardiola, Associated Press reported.

“We suffered a lot,” Ancelotti said. “In the end, after the 180 minutes, I think we deserved to advance.”

In the other quarterfinal on Tuesday, modest Spanish club Villarreal advanced past Bayern Munich 2-1 on aggregate after a 1-1 draw in the second leg in Germany.

The loss will add to Chelsea’s off-the-field turmoil amid the forced sale of the club after sanctions in Britain against oligarch owner Roman Abramovich following Russia’s invasion of Ukraine.

Chelsea had eliminated Madrid 3-1 on aggregate in last year’s semifinals en route to its second Champions League title. But Madrid couldn’t play at the Bernabéu that time because the venue was undergoing major renovation work. Instead, the first leg was at the small Alfredo Di Stéfano Stadium in the club’s training center, a match that ended 1-1 before Chelsea won 2-0 in London.

On Tuesday, the defending champions looked the more dangerous team during most of the match but both sides had opportunities in a high-intensity encounter that went back-and-forth toward the end of regulation.

Chelsea’s American substitute Christian Pulisic had two good chances for a decisive goal in stoppage time but couldn’t capitalize on them. The visitors also had a couple of opportunities later in extra time as they pushed for a goal that would take it to penalties, according to the Associated Press.

The English side got a dream start when Mount opened the scoring after quick touches by Ruben Loftus-Cheek and Werner caught the Madrid defense off guard and left the forward with an easy shot from inside the area. 

The visitors got the second with a firm header by Rüdiger off a corner by Mount, and they thought they had another in the 62nd after Marcos Alonso scored from inside the area, but the goal was called back after video review because of a handball.

As the final whistle blew — and Bayern Munich’s dejected superstars slumped to the ground — Villarreal’s substitutes raced onto the field to join the teammates who ousted the six-time European champions, Associated Press reported.

There would have been room enough in Bayern’s stadium for the entire population of Villarreal to celebrate with them Tuesday after the team reached the Champions League semifinals for the first time since 2006. 

Such are the disparities in size and status between these clubs, that all 50,000 residents of the southeastern Spanish city could fit into Bayern’s 75,000-capacity Allianz Arena.

“We are a small city but they are strong players,” Villarreal coach Unai Emery said after his team earned a late 1-1 draw that secured a 2-1 aggregate victory in the quarterfinals.

Villarreal had won the first leg 1-0 at home when it squandered chances for an even bigger lead, and Bayern had leveled the aggregate score when Robert Lewandowski netted seven minutes into the second half. This time it was Bayern that missed chances to score again, and Samuel Chukwueze completed a counterattack in the 88th minute to extend Villarreal surprising run in the competition, according to the Associated Press.

“They made the mistake today of not killing us off and we took advantage of that,” Villarreal striker Gerard Moreno said. “What this team has done is great.”

Especially given that Villarreal only qualified for the Champions League by winning the Europa League and is seventh in the Spanish league after struggling domestically. Bayern, meanwhile, is the runaway Bundesliga leader.

And while Bayern lifted the European Cup in 2020, the furthest Villarreal has reached in the competition is the semifinals the single time in 2006.

“If you take just this game into account, without the first game, we should have gone through convincingly,” Bayern forward Thomas Müller said. “It’s difficult to accept this; I don’t know what to say.”

But the same resolve that saw Villarreal beat Manchester United on penalties in the 2021 Europa League final has now seen the team oust both Juventus and Bayern in the knockout phase of the Champions League, Associated Press reported.

There could be another six-time champion to eliminate to a reach a first Champions League final. Liverpool or Benfica awaits in the semifinals, with the English club holding a 3-1 lead over the Portuguese side heading into Wednesday’s second leg at Anfield.

Even when Lewandowski leveled the quarterfinal on aggregate — with a low shot after being set up by Müller — Villarreal continued to cause Bayern problems.

The decisive moment came when Dani Parejo gained possession by the Villarreal penalty area and then launched the breakaway by sending the ball to Giovani Lo Celso. Lo Celso then slid a pass across the face of goal and Chukwueze struck into the top corner of the net.

Villarreal was delirious and held out for the memorable win, according to the Associated Press.

“We knew we were going to suffer in defense but we were going to have our chances,” Moreno said. “And, in the end, Chukwueze was able to make the most of it. We want to thank those who came here tonight and those who are in Villarreal. It’s great to be a Villarreal fan, and you have to enjoy nights like this.”

Chennai Super Kings beat Royal Challengers Bangalore by 23 runs in their IPL match here on Tuesday, The Indian Express reported.

Invited to bat, CSK posted a massive 216 for 4 with Shivam Dube (95 not out off 46 balls) and Robin Uthappa (88 off 50 balls) sharing 165 runs for the third wicket, the highest this season.

For RCB, Wanindu Hasaranga de Silva took two wickets while Josh Hazlewood got one. Chasing the huge target, RCB were restricted to 193 for 9, according to The Indian Express.

Ahmed top-scored for RCB with 41, while Dinesh Karthik and Suyash Prabhudessai chipped in with 34 each.

For CSK, Maheesh Theekshana took four wickets for 34 runs while Ravindra Jadeja got three.

Vladimir Putin vowed Tuesday that Russia’s bloody offensive in Ukraine would continue until its goals are fulfilled and insisted the campaign was going as planned, despite a major withdrawal in the face of stiff Ukrainian opposition and significant losses, Associated Press reported.

Russian troops, thwarted in their push toward Ukraine’s capital, are now focusing on the eastern Donbas region, where Ukraine said Tuesday it was investigating a claim that a poisonous substance had been dropped on its troops. It was not clear what the substance might be, but Western officials warned that any use of chemical weapons by Russia would be a serious escalation of the already devastating war.

Russia invaded on Feb. 24, with the goal, according to Western officials, of taking Kyiv, the capital, toppling the government and installing a Moscow-friendly regime. In the six weeks since, the ground advance stalled and Russian forces lost potentially thousands of fighters and were accused of killing civilians and other atrocities.

Putin insisted Tuesday that his invasion aimed to protect people in parts of eastern Ukraine controlled by Moscow-backed rebels and to “ensure Russia’s own security.”

He said Russia “had no other choice” but to launch what he calls a “special military operation,” and vowed it would “continue until its full completion and the fulfillment of the tasks that have been set.” 

For now, Putin’s forces are gearing up for a major offensive in the Donbas, which has been torn by fighting between Russian-allied separatists and Ukrainian forces since 2014, and where Russia has recognized the separatists’ claims of independence. Military strategists say Moscow appears to hope that local support, logistics and the terrain in the region favor its larger, better-armed military, potentially allowing Russia to finally turn the tide in its favor, according to the Associated Press.

In Mariupol, a strategic port city in the Donbas, a Ukrainian regiment defending a steel mill claimed a drone dropped a poisonous substance on the city. It indicated there were no serious injuries. The assertion by the Azov Regiment, a far-right group now part of the Ukrainian military, could not be independently verified.

Ukrainian President Volodymyr Zelenskyy said that while experts try to determine what the substance might be, “The world must react now.” Evidence of “inhuman cruelty” toward women and children in Bucha and other suburbs of Kyiv continued to surface, he added, including of alleged rapes.

“Not all serial rapists reach the cruelty of Russian soldiers,” Zelenskyy said.

The claims came after a Russia-allied separatist official appeared to urge the use of chemical weapons, telling Russian state TV on Monday that separatist forces should seize the plant by first blocking all the exits. “And then we’ll use chemical troops to smoke them out of there,” the official, Eduard Basurin, said. He denied Tuesday that separatist forces had used chemical weapons in Mariupol.

Ukraine’s Deputy Defense Minister Hanna Maliar said officials were investigating, and it was possible phosphorus munitions — which cause horrendous burns but are not classed as chemical weapons — had been used in Mariupol, Associated Press reported.

Much of the city has been leveled in weeks of pummeling by Russian troops. The mayor said Monday that the siege has left more than 10,000 civilians dead, their bodies “carpeted through the streets.” Mayor Vadym Boychenko said the death toll in Mariupol alone could surpass 20,000.

Zelenskyy adviser Mykhailo Podolyak acknowledged the challenges Ukrainian troops face in Mariupol. He said via Twitter that they remain blocked and are having issues with supplies, while Ukraine’s president and generals “do everything possible (and impossible) to find a solution.”

“For more than 1.5 months our defenders protect the city from (Russian) troops, which are 10+ times larger,” Podolyak tweeted. “They’re fighting under the bombs for each meter of the city. They make (Russia) pay an exorbitant price.”

British Foreign Secretary Liz Truss said the use of chemical weapons “would be a callous escalation in this conflict,” while Australian Foreign Minister Marise Payne said it would be a “wholesale breach of international law.”

US President Joe Biden for the first time referred to Russia’s invasion as a “genocide.” He was even blunter later Tuesday, repeating the term and saying: “It’s become clearer and clearer that Putin is just trying to wipe out the idea of even being a Ukrainian.”