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The construction of the Pokhara Water Supply Improvement Project, initiated in 2019 to provide mineral water-quality drinking water to Pokhara households, has been completed.

The project, funded with a grant of Rs 4.81bn from the Japan International Cooperation Agency (JICA), was officially handed over on Friday. JICA and the Government of Nepal signed the grant agreement for the project on 15 Feb 2017, with construction beginning in 2019.

Japan’s Hazama Ando Corporation was entrusted with the project’s construction. Although work was delayed due to the Covid-19 pandemic, the initial deadline of 31 Dec 2023, was extended to Aug 31. With the project’s completion, 41m liters of water collected daily from the Mardi River in Machhapuchhre Rural Municipality are now processed through a state-of-the-art treatment plant before distribution in Pokhara. Previously, 46m liters of untreated water were distributed daily from the same source. The project adjusted its output to match the original design specifications, resulting in a 5m-liter reduction in daily distribution.

Despite the availability of treated drinking water, Pokhara continues to face water shortages. The Drinking Water Corporation has connected 52,000 households to the system. According to Ashish Karki, head of the Pokhara branch of the Drinking Water Corporation, current production stands at 62m liters daily, including water sourced from boreholes.

However, the 19 wards of Pokhara Metropolitan City require 87m liters of water per day to meet the demands of the growing population. The project did not account for this population growth during its planning phase, leading to continued shortages.

At the inauguration ceremony on Friday, Water Minister Pradeep Yadav pledged to address the remaining water scarcity through additional measures. Mayor Dhana Raj Acharya of Pokhara Metropolitan City expressed satisfaction that, for the first time, the city now has a pure and safe drinking water treatment system. He also called for new plans to resolve the ongoing water shortages, assuring the metropolis’ support in this effort.

Currently, Pokhara’s water supply includes 3.5m liters daily in the rainy season and 1m liters in the dry season from Armalasthi Bhotikhola. Another 3.5m liters in the rainy season and 1.5m liters in the dry season are sourced from Kalimuda and Majkun Muhan, distributed via the Amalabisauni tank. Additionally, 1m liters are distributed from Baldhara. Water is also extracted from 21 boreholes across the city, with a total of 62m liters supplied daily.

To address the shortages, the Drinking Water Corporation is in the process of contracting work to bring additional water from the Mardi River through a 500-mm pipeline. However, it appears residents of Pokhara will need to wait a few more years for uninterrupted, 24-hour access to clean drinking water.

Confederation of Nepalese Industries (CNI) President Rajesh Kumar Agrawal has said the country’s economy is passing through difficult times despite positive indicators on the external sector. “Our foreign currency reserves appear stable, and the country enjoys relative comfort in goods and services imports. Inflation remains controlled, and interest rates have shown a downward trend,” Agrawal said. “However, the country’s private sector is suffering. GDP growth for the previous year was a modest 3.87 percent, with production and construction sectors demonstrating negative growth trajectories. Most critically, industries are operating at a mere 30-40 percent of their potential capacity, signaling significant economic distress.”

Agrawal identified several key challenges driving this economic slowdown. “Declining imports and exports are exerting considerable pressure on government revenues. The policy measures implemented to control international inflation and manage foreign currency reserves have inadvertently contributed to a substantial reduction in overall economic demand,” he said. “We are currently experiencing a policy-induced economic slowdown. It is absolutely critical to bring the economy out of this situation.”

Agrawal demanded proactive government intervention to cure these ills. Commending the finance ministry for including private sector representatives in the High-level Economic Sector Reform Committee led by former finance secretary Rameshore Khanal, Agrawal said the collaborative approach is crucial for developing comprehensive economic revival strategies.

He urged the government for economic reforms to reinvigorate the economy. “The current policies focused on reducing must be fundamentally reimagined. The focus should shift towards stimulating demand, which is currently at critically low levels. This demand contraction is creating a cascading effect, negatively impacting industries, creating liquidity challenges for financial institutions, and contributing to increased non-performing assets,” the CNI President added. 

Agrawal also criticized the management of institutional funds. “Funds of entities like Employees Provident Fund (EPF), Citizen Investment Trust (CIT) and Social Security Funds are currently parked in bank deposits which deliver low returns. These funds should be utilized to develop critical infrastructure projects,” Agrawal said, urging the government to increase its capital expenses significantly.

Agrawal called for a multi-dimensional approach involving short-term, medium-term, and long-term policy interventions to revitalize Nepali economy. “There should be an ecosystem that supports business growth, encourages investment and stimulates economic activity,” he added. 

He also called for strategic, forward-thinking economic policies that can revive, reinvigorate and propel Nepal’s economic landscape towards sustainable growth.

In a continued effort to manage the country’s financial system, Nepal Rastra Bank (NRB) absorbed
Rs 50bn from the market through a 21-day deposit collection auction on Sunday. This is the central bank’s second major liquidity absorption in recent weeks. The NRB mopped up Rs 100bn liquidity from the banking system on Nov 27. 

According to bankers and the central bank data, the banking system currently holds an unprecedented Rs 760bn in investable funds. Investable funds of banks and financial institutions are expanding in recent months with deposit collection consistently outpacing credit disbursement. 

Experts say this liquidity glut is symptomatic of broader economic challenges including weak economic activity that has significantly reduced demand for goods and services. The reduced economic activities have had cascading effects on the economy. Reduced consumer and business spending has led to decreased import volumes, which has directly impacted government revenue collection. This has forced the government to rely on public debt even to pay the salary of government employees.

Despite the central bank’s efforts to stimulate economic activity by easing monetary policy for the current fiscal year, credit demand has shown minimal improvement. As a result, the central bank kept policy rates unchanged in the first quarter review of the monetary policy for the current fiscal year on Friday. According to the central bank, the bank rate and policy rate have been maintained at 6.5 percent and five percent, respectively. The NRB has also kept the credit-deposit ratio, statutory liquidity ratio and cash reserve ratio unchanged.

The low demand for bank credit amid a slowdown in economic activities has driven interest rates to record lows. The average loan interest rate has dropped to 9.33 percent while the average deposit rate sits at 5.44 percent. Most commercial banks are now offering loans within an 8-9 percent interest rate range for the month of Mangsir (mid-November to mid-December).

The interbank lending rate has also declined to three percent. NRB starts mopping up liquidity from the market when interbank lending rate comes down to three percent, to prevent further rate erosion. The deposit collection auction is one of the important tools that the central bank has been deploying to absorb excess liquidity. Banks also have the option to park their surplus funds in the permanent deposit facility, which offers a fixed three percent interest rate.

The price of gold has increased by Rs 1, 000 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 150, 300 per tola today. It was traded at Rs 149, 300 per tola on Monday.

Similarly, the price of silver has increased by Rs 30 and is being traded at Rs 1, 815 per tola today.

Nepal and the People's Republic of China have signed a Memorandum of Understanding (MoU) related to cooperation and collaboration in various eight areas including trade promotion and exchange of technical assistance in the presence of the Prime Ministers of both countries today.

The MoU on mutual collaboration was inked after the bilateral meeting between Prime Minister KP Sharma Oli and Chinese Premier Li Qiang at the Great Hall of the People.

Prime Minister Oli is currently in Beijing in connection with a four-day official visit to China.

The Chinese People's Liberation Army presented a guard of honor to PM Oli before the bilateral meeting.

The Nepali delegation led by Prime Minister Oli arrived in the Chinese capital on Monday.

US Assistant Secretary of State for South and Central Asian Affairs Donald Lu is arriving in Nepal.

Lu will travel to India, Sri Lanka, and Nepal from December 3 to December 10, according to a media note issued by the US Department of State. His trip will strengthen cooperation with key partners in South Asia to promote regional prosperity and security.

Assistant Secretary Lu will conclude his trip in Kathmandu, Nepal, meeting with senior leaders to advance cooperation on environmental protection, women’s empowerment, and sustainable development. 

He will meet with youth leaders to gain insights into their vision for the future of US-Nepal relations. 

Additionally, discussions will emphasize the importance of cultural preservation, recognizing Nepal’s rich heritage as a cornerstone of its identity and a key driver of its tourism and economy, reads the note.

In New Delhi, India, Assistant Secretary Lu will support US-India collaboration in the Indo-Pacific and beyond.  He will join Assistant Secretary of State for the Bureau of East Asian and Pacific Affairs Daniel Kritenbrink to lead US participation in the US-India East Asia Consultations. 

The Consultations, along with separate meetings with senior Indian officials, will provide an opportunity to exchange perspectives on global and regional issues.

On December 5, Assistant Secretary Lu will travel to Colombo, Sri Lanka, to advance US-Sri Lankan joint efforts to promote sustainable economic growth, combat corruption, and strengthen people-to-people ties, the note further reads.

USAID Deputy Assistant Administrator Anjali Kaur and Department of the Treasury Deputy Assistant Secretary Robert Kaproth will join the Assistant Secretary to meet with senior government officials from Sri Lanka’s new administration and representatives from civil society. 

Discussions will deepen ties with the new government, support its efforts to combat corruption, and explore how the United States can support Sri Lanka’s governance and economic reform agenda through tailored technical assistance, capacity building, and development programs.

Chinese Premier Li Qiang welcomed Prime Minister KP Sharma Oli at the Great Hall of the People in Beijing today. PM Oli is currently on an official visit to China.

On the occasion, the Chinese Liberation Army accorded a 'guard of honor' to PM Oli.

The welcome ceremony was attended by the Chinese leaders as well.

PM Oli introduced the Nepali delegation members on the occasion, while the Chinese Premier also introduced his leaders.

Later, the bilateral meeting and signing ceremony are scheduled between the two Prime Ministers. PM Oli is holding a meeting with Chinese President Xi Jinping today itself.

The Nepali delegation led by Prime Minister Oli arrived in China on Monday.

The entourage comprises PM's spouse Radhika Shakya, Foreign Minister Dr Arzu Rana Deuba, PM's chief advisor Bishnu Rimal, PM's economic and development advisor Yubaraj Khatiwada, federal lawmakers, chief secretary, high level government officials, private sector representatives and media persons.

It has been a century since child rights were recognized as distinct human rights. This landmark movement began with the Geneva Declaration in 1924, the first international document dedicated to the rights of children. Prior to this, children were largely viewed as future citizens, rather than individuals entitled to specific rights. Authored by Eglantyne Jebb, founder of Save the Children, the Geneva Declaration marked the beginning of global recognition for child rights. Established in 1919, Save the Children has become a leading independent organization championing the rights of children worldwide.  

In Nepal, Save the Children has been active since 1976, focusing on areas such as health, nutrition, and education. The organization works in collaboration with children, communities, governments, and civil society to ensure the rights of children, including those with disabilities, from disadvantaged backgrounds, and from gender and sexual minorities. As of 2023, Save the Children has reached 1.06 million children in Nepal, supporting 42,954 in child protection, 306,444 in education, 122,299 in health and nutrition, 63,242 in humanitarian efforts, 47,310 in child rights governance, and 74,644 in livelihoods.  

To commemorate a century of global child rights advocacy and over four decades of work in Nepal, Save the Children recently organized an event in Kathmandu. The gathering brought together children, government representatives, development partners, civil society organizations, and child rights advocates. Presentations highlighted the organization’s achievements, ongoing challenges, and future strategies. Tara Chettry, Country Director of Save the Children Nepal and Bhutan, emphasized the significant progress made through decades of collective efforts while highlighting emerging challenges. She called for sustained collaboration with children and coordination among federal, provincial, and local governments to ensure child rights remain central to Nepal’s development.  

At the event, a study report titled ‘Child Rights Campaign in Nepal: Opportunities and Future Roadmap’ was launched. The report highlights the importance of strategic investment in children and fostering a new generation of child activists to sustain the achievements of Nepal’s child rights movement. Speaking at the event, Minister for Women, Children, and Senior Citizens Nawal Kishor Sah Sudi reiterated the government’s commitment to prioritizing child rights, especially for children requiring special protection, and including their voices in policymaking. European Union Ambassador to Nepal Veronique Lorenzo also expressed the EU’s dedication to collaborating with Save the Children, the government, and other partners to improve the lives of children.  

The event featured campaigns led by children and youth on issues such as climate and gender justice, with participation from activist groups like Kayapalat, Shift, Nepalese Youth for Climate Action, and Queer Care. These initiatives underscored the importance of youth-led advocacy in shaping a more inclusive and just society for children.  

Save the Children UK began operations in Nepal in 1976. The country ratified the United Nations Convention on the Rights of the Child in 1990, which led to the enactment of the Children Act, 2048 in 1992. Since then, Nepal has implemented various child-focused plans and legislation, including the Eighth Five-Year Plan (1992–1997), the first 10-Year Plan for Children (1992–2001), and the Child Labour (Prohibition and Regulation) Act, 2056 in 2000. The 2015 Constitution of Nepal enshrined child rights, and the National Policy on Children was introduced in 2023. Most recently, in 2024, civil society and children led a report on Nepal’s progress towards the Sustainable Development Goals (SDGs) from a child’s perspective, which was submitted to the National Planning Commission.

Save the Children’s decades-long commitment to child rights advocacy underscores its dedication to ensuring that the voices of Nepal’s children are heard and prioritized in the country’s development journey. The organization continues to address emerging challenges, foster meaningful participation by children, and collaborate with stakeholders to build a brighter future for all children in Nepal.