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The government is preparing to set a limit of Rs 2.5m on individual deposits in cooperative institutions, citing increased risks stemming from large deposits driven by high-interest incentives.  

The government plans to introduce the savings cap and a host of other reform measures through an ordinance, according to an official of the Ministry of Land Management, Cooperatives, and Poverty Alleviation.  

This is in line with the recommendations made by the Parliamentary Special Committee on the Investigation of Misuse of Cooperative Deposits led by lawmaker Surya Thapa. The committee made a slew of recommendations ranging on limits on savings and loans in cooperatives, as well as forming a regulatory authority and credit information center for the sector.  

The official said the ordinance also proposes creating a Cooperative Regulation Commission and a Credit Information Centre, among other institutions, as recommended by the committee.  

This, however, is not the first time that the government is preparing to introduce a savings cap in cooperative institutions. Two years ago, the government had proposed to introduce an individual savings cap of Rs 2.5m in cooperative institutions through an amendment to Article 52 of the Cooperative Act, 2017. However, the Law, Justice and Human Rights Committee of the lower house rejected the proposed amendment.  

The committee also rejected a proposal for the regulation of cooperatives with capital above Rs 250m and an annual turnover of over Rs 500m by the Nepal Rastra Bank (NRB).  

Lawmakers from the Rastriya Swatantra Party (RSP) and the Rastriya Prajatantra Party (RPP) had expressed dissatisfaction with the decision to reject the amendment proposal. Interestingly, RSP President Rabi Lamichhane has been in the custody of Kaski police since Oct 18, under investigation for his alleged role in the misuse of deposits from the Pokhara-based Suryadarshan Saving and Credit Cooperative.  

The number of troubled cooperatives unable to return public deposits has been on the rise, mainly due to a lack of strong regulatory and oversight mechanisms. To address this, the ministry drafted the ordinance, proposing measures to regulate savings and credit cooperatives.  

Earlier this year, parliament amended the Nepal Rastra Bank Act, 2001 and the Cooperative Act, 2017, granting Nepal Rastra Bank (NRB) the authority to regulate, inspect, and issue directives for cooperatives involved in savings and loans. This paved the legal way for the central bank to regulate cooperatives with capital or annual turnover exceeding Rs 500m.

The government has announced to honor 35 people from the sports fraternity for their stellar victory in various international competitions.

Minister for Communications and Information Technology Prithvi Subba Gurung shared this while unveiling the decisions of the cabinet meetings convened last Thursday and Friday.

Among the key decisions made in the meetings, the government decided to honor award winning players and their coaches, managers and physiotherapists who brought home medals in the international-level football, karate and beach volleyball competitions.

Minister Gurung, also the Spokesperson of the government, informed that the government has approved in-principle for advancing the compensation and addressing problems related to the under-construction Nagdhunga Tunnel Project.

The other notable decisions of the last two cabinet meetings are accepting the grant assistance worth USD 100 million from the Asian Development Bank (ADB) for Green, Resilient and Inclusive Development Programme, ADB's USD 170 million concessional loan and USD 15 million grant assistance for the project related to improvement of drinking water supply in the Kathmandu Valley.

The meeting also decided to accept USD 3 million grant assistance from the Japan Fund for Prosperous and Resilient Asia and the Pacific in addition to the USD 85 million from the ADB for the project concerning modernization of irrigation.

Other important decisions included appointing Devraj Dgungana in the Executive Director of the Security Print Press Centre and nominating Dr Rajendra Prasad Baral and Deepakraj Sapkota as the Board of Directors of the Shahid Gangalal National Heart Centre.

The government approved the fourth period report to be submitted by Nepal to the Committee of the Convention on Economic, Social and Cultural Rights. Furthermore, the MoU to be signed between the governments of Nepal and India for projects related to the development of water, sanitation and hygiene has been approved.

Additionally, the meeting approved the Electronic Good-Governance Commission (Formation and Operation) (First Amendment) Order and Guideline on the usage of domestically produced goods in the public offices.

The government also approved the Micro, Cottage and Small Enterprises Promotion Policy, the Industrial and Investment Promotion Fund Operation Procedure and National Urban Development Policy-2081 BS.

Nirmala Sharma has been elected the Chair of the Federation of Nepali Journalists (FNJ). She is the first female figure to head the umbrella organisations of journalists.

As per the announcements of the final vote's counts made by the FNC Central Election Committee on Sunday late night, Sharma secured 4,282 votes against 3,203 of her nearest competitor Ramesh Bista to win the election. 

Devi Prasad Sapkota, the third candidate for the chair post, obtained 270 votes while another contender Lal Singh Lama got 96. 

Similarly, Deepak Acharya has won the election for the Senior Vice Chair by receiving 4, 230 votes against 2,886 of his nearest competitor Roshan Puri.

Towards the Woman Vice Chair, Nitu Pundit obtained 4,705 votes to win the election while her rival Gangal Baral got 2,644.

Umid Bagchand won the post of Vice Chair (Inclusive) with 4292 votes while his nearest rival Susbhash Prasad Sah secured 2,080.

Ram Prasad Dahal has been elected the General Secretary with 4084 votes   and his nearest competitor Lekhnath Neupane got 1,929 and Ramesh Khatiwada has been elected as the Secretary from open with 3400 votes.

Other elected office bearers are Soni Sharma (Secretary, Woman- 4347), Sabin Priyasan (Secretary, Indigenous Nationalities-3,535), Ashok Kumar Tiwari (Secretary, Madheshi-3,858), Prakash Dhaulakoti (Secretary, Dalit- 4,110) and Baikuntha Raj Parajuli (Secretary, Associate-3,645).

Ramkrishna Adhikari has been elected on the post of treasurer with 3,847 votes.

Kamal Rimal, Shankar Kharel, Raju Bishwakarma and Rajesh Kumar Karna have been elected the central members representing the Koshi, and Madhesh provinces respectively.  Each province has two members on the central committee.

From the Bagmati Province (except the Kathmandu Valley, Nawaraj Pathik and Narayan Prasad Adhikari have won the election for the posts of central members while Krishna KC and KB Rana represent the Gandaki Province on the central committee.

Ramraj Pokhrel and Bikash Banjade are the newly elected central members from the Lumbini Province while Tularam Pandey and Nagendra Prasad Upadhya represent the Karnali Province.

Arjun Pant and Surya Subedi are from the Valley Province to get elected as the central members while Birendra Oli and Sabita Sharma represent the Corporate Province.

Pabitra Mudbhari and Menuka Kunwar have been elected from the Associate Province while Chhabilal Tiwari, Bhupendra Acharya, Mukunda Prasad Bhandari, Rameshwor Karki and Labadev Dhungana have won the elections for the central members through an open category.

 Ruby Kumari Rauniyar (Madhesi Woman), Mala Palungawa (Indigenous Nationalities), Leela Shah Yogi (Khas Arya Woman),   Rita Budhathoki (Dalit Woman-unopposed) are the newly elected members on the FNJ central committee, representing various clusters.

 Sikendra Paswan (Dalit), Sabitri Rasaili (Dalit-unopposed), Bharat Jargha Magar (Indigenous nationalities), Devika Gharti Magar (Indigenous Nationalities woman-unopposed), Raj Karan Mahato (Madheshi), Lalita Kumari Shah (Madhesi woman), Bhuparaj Basyal (person with disabilities) and Laxman Thami (minorities) have been elected the FNJ central members.

KC Lamichhane has won the election for the FNJ Public Committee Coordinator while Keshab Prasad Bohora has been elected as the members on the same committee and Rukmini Pokhrel has been elected as the member from the committee.  The FNJ elections for all the three-tier leadership were held simultaneously on Friday, December 13.

The Nepal Stock Exchange (NEPSE) plunged by 51. 37 points to close at 2,9630.91 points on Wednesday.

Similarly, the sensitive index dropped by 6. 93 points to close at 451. 28 points.

A total of 12,745,777-unit shares of 304 companies were traded for Rs 5. 93 billion.

Meanwhile, Kutheli Bukhari Small Hydropower Limited (KBSH) was the top gainer today with its price surging by 10. 00 percent. Likewise, Janaki Finance Company Limited (JFL) was the top loser as its price fell by 9. 58 percent.

At the end of the day, the total market capitalization stood at Rs 4. 36 trillion.

PHD Chamber of Commerce and Industry (PHDCCI) in association with the Consulate General of India (Birgunj, Nepal) and Chamber of Commerce & Industry-Chitwan (CCIC) and under the aegis of its bilateral economic Think Tank “India-Nepal Centre”, organized the “India-Nepal Economic Partnership Summit 2024” on December 14, 2024 at CCIC Headquarter, Chitwan, Nepal.

The Summit was organized to create a uniquely important platform for discussing a forward looking bilateral economic partnership agenda.  

The deliberations supported by the decision-makers' will help in opening new avenues of business engagements in the key sectors of economy besides giving a much needed boost to the economic hub of Chitwan and trade near the crucial India-Nepal border in Birgunj.

The main objective of the summit was to create a platform through joint action for deeper economic engagement between India and Nepal (with focus on remittance, imports, exports and Balance of Payment (BoP) challenges in Nepal), to channelize investment from India to Nepal and other ways round, to re-establish the India-Nepal bilateral relations as the core strength of the sub-regional co-operation in South Asia, to create a sustained convergence of industry and government, for thriving on the mutually beneficial India-Nepal bilateral relations in all crucial realms, to bring-in to notice the hidden potential in the Border Area Development Program and paving the way for India’s major involvement in helping the infrastructural facelift of Nepal’s bordering districts in Bihar and making them the gateways of India-Nepal Trade Connection, to discuss and ideate for making Cluster-based Economic Zones across Nepal and to further relax the cross-border trade norms to secure and sustain the greater economic engagements, reads a statement.

While setting the tone of the Summit with interpreting the existing macroeconomic scenario of Nepal, the Session Chair Atul K Thakur, Secretary, India-Nepal Centre, PHDCCI reflected on the necessity for having a collaborative approach among the stakeholders in the government and industry to tap the rich potential and also cope the challenges in post-pandemic times through India-Nepal economic cooperation. With emphasis on the Summit’s dwelt discussion points (New Roadmap for Accelerating India-Nepal Bilateral Cooperation; Promoting Industrial Development in Nepal and India; Revisiting Bilateral Trade Policies; Expanding Bilateral and Sub-regional Economic Cooperation; Improving Border Area Development and Connectivity), the discussions took place during the Summit.

 In his opening remarks, Suman Shrestha, President, Chamber of Commerce & Industry-Chitwan (CCIC) acknowledged that industrial development of Nepal is affected by the adverse economic fundamentals and that it necessitates closer collaboration between the business communities of India and Nepal.

He dwelt on CCIC’s remarkable contributions for the sustainable industrial development in Chitwan region and reassured for further deepening of India-Nepal bilateral economic cooperation with keeping the industries in Chitwan open for closer business partnerships, according to the statement.

 Anil Kumar Agrawal, President, Birgunj Chamber of Commerce & Industries (BICCI) recounted Birgunj’s achievements as a major trade hub of Nepal and how BICCI has been contributing over the decades in making the industry and trade, the mainstay of this place crucially important for India-Nepal economic relations. He said that, with the PHDCCI India-Nepal Centre, such bilateral economic forums will be a regular exercise to help the bilateral economic ecosystem between India and Nepal.

Devi Sahai Meena, Consul General of India, Birgunj, Nepal reassured India's support to accelerate the economic cooperation between India and Nepal. Through policy and implementation, India has been a key development partner of Nepal. He said, “Government of India is providing assistance for development of cross-border trade related infrastructure. It includes up-gradation of four major Integrated Check Posts at Birgunj-Raxaul, Biratnagar-Jogbani, Bhairahawa-Sunauli and Nepalgunj-Rupaidiha to international standards; upgrading approach highways to the border on the Indian side; broad gauging and extending rail links to Nepal. Integrated Check Posts at Birgunj and Biratnagar are fully functional.

Nepalgunj-Rupaidiha ICP was inaugurated by the Prime Ministers of both the countries on June 1, 2023, construction work of the integrated check post at the Sunauli-Bhairahawa border started at the same time. The Jaynagar–Janakpur–Bardibas cross border railway line between India and Nepal has been reopened after upgradation. This line is operational now between Jaynagar and Kurtha and will be extended upto Bardibas.  Motihar – Raxaul-Amlekhganj petroleum pipeline is transporting diesel to Nepal. 

This pipeline project between India and Nepal is the first of its kind in the entire South Asia and was jointly inaugurated by Prime Ministers of India and Nepal on 10.9.2019. 

Muzaffarpur – Dhalkebar 400 KV power transmission line built with Govt of India’s grant assistance was inaugurated by Prime Ministers of both the countries in 2016. 

The line is operating at its full capacity.  Similarly, Raxaul – Parwanipur Cross Border Transmission line built with Govt of India grant is also operational.” He added that the India-Nepal relations are supported with complementarities and people-to-people, something that should be counted as strong foundational support. He also shared an overview of the main constituents of economic cooperation and challenges at policy level that need to be tackled.

 Among others, the “India-Nepal Economic Partnership Summit 2024” was also addressed by the leading expert on Nepal affairs Mahesh Kumar Agrawal, Bihar State Coordinator, Seema Jagran Manch; Atul Koirala, Board Member, BP Koirala India-Nepal Foundation & Techno-Entrepreneur and Anand Jha, Vice President (Head of Government Engagement: India & South Asia), Visa.

Well-timed and meant to foster the border trade with emphasis on bilateral and subregional economic cooperation, the second edition of “India-Nepal Economic Partnership Summit 2024” concluded at Chitwan with providing business linkages and partnerships.

Sudurpaschim Royals defeated Karnali Yaks by six wickets in the last match of the league stage in the ongoing Nepal Premier League T20 Cricket Tournament.

Sudurpaschim achieved the 102-run target set by Karnali in 15.2 overs at the loss of four wickets. The match was held at TU Cricket Ground in Kirtipur.

Captain Dipendra Singh Airee and Ishan Pandey scored 38 runs each for Sudurpaschim. Similarly, Saif Zaib made 11 runs, Binod Bhandari and Aarif Sheikh hit four runs each, Brandon MacMullen three runs. Sudurpaschim secured seven extra runs in the match.

Towards bowling, captain Sompal Kami, Bipin Sharma and Nandan Yadav took one wicket each.

Sent into bat first after losing the toss, Karnali Yaks made 101 runs in the allotted 20 overs at the loss of 10 wickets.

Zeeshan Maqsood scored highest 30 runs with the help of four fours in 35 balls for Karnali. William Bosisto scored 16 runs, Babar Hayat 13, and captain Sompal Kami and Chadwick Walton each made 11 runs.

Towards bowling, Harmeet Singh took the highest three wickets for Sudurpaschim. Similarly, captain Dipendra Singh Airee and Scott Kuggeleijn took two wickets each while Saif Zaib took one wicket.

Playoff equation completes

The playoff equation of NPL has been completed with the conclusion of the league stage games. Karnali have entered the playoff despite losing to Sudurpaschim. Kathmandu Gurkhas are out of the playoff stage. 

Janakpur Bolts, Chitwan Rhinos and Sudurpaschim Royals have already reached the playoff stage before this.

Sudurpscahim will play against Janakpur in the first qualifier of NPL while Chitwan and Karnali will vie in the eliminator match.

The price of gold has increased by Rs 400 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 151, 200 per tola today. It was traded at Rs 150, 800 per tola on Sunday.

Similarly, the silver is being traded at Rs 1, 840 per tola today.

The high inflationary pressure from neighboring India has led to a rise in food prices in Nepal. India’s inflation has reached 5.48 percent over the past four months, with vegetable prices remaining elevated since last month. The continuous price hikes in India over the past two months have also affected Nepal, contributing to an increase in inflation, according to Gunakar Bhatta, Executive Director of the Economic Research Department at Nepal Rastra Bank. 

Overall inflation has risen due to the surge in food prices. According to the central bank, the annual point-to-point consumer inflation rate for the current fiscal year, as of October, reached 5.6 percent, higher than the 5.38 percent recorded in the same month last year. Inflation for food and beverages stood at 9.1 percent, while non-food and services saw an inflation rate of 3.65 percent. In October of the previous year, food and beverage inflation was 5.98 percent, and non-food inflation was 4.99 percent. 

Subcategories within food and beverages experienced significant price increases. Vegetables saw inflation of 33.99 percent, lentils and pulses rose by 10.78 percent, food-related products increased by 10.15 percent, and ghee and oil prices climbed by 9.29 percent. However, the prices of spices, sugar and sugar products, and fish and meat decreased by 1.41 percent, 1.28 percent, and 0.02 percent, respectively. Bhatta pointed out that the overall price pressure in Nepal is primarily due to rising food prices in India, where food items are more expensive.

Nepal’s foreign exchange reserves have grown, as more foreign currency has been flowing into the country than leaving. As of October in the current fiscal year, foreign exchange reserves stood at Rs 2.05trn, compared to Rs 1.5trn during the same period last year. In US dollar terms, the reserves increased from $113m last year to $153m this year. Additionally, the current account balance has also risen, from Rs 97.1bn last year to Rs 143.42bn this year. Foreign direct investment has increased as well, with Rs 5.76bn flowing into Nepal compared to Rs 3.65bn last year.

Before the Covid-19 pandemic, economic activity in Nepal was robust, with growth surpassing seven percent. However, the economy has not yet returned to that level. Bhatta argues that with the increase in foreign exchange reserves, there is now a solid foundation to expand economic activities. While the external sector has strengthened over the past year and a half, domestic inflation remains high. He suggests that both the government and the private sector should focus on expanding economic activities, particularly in infrastructure development and construction projects. This expansion, combined with the management of surplus foreign exchange reserves and market liquidity, will help drive economic growth.