Koshi Chief Minister Hikmat Karki secures vote of confidence
Koshi Province Chief Minister Hikmat Kumar Karki secured a vote of confidence from the Koshi Province Assembly on Monday.
He got 57 votes in his favor and no one voted against him.
The Rastriya Prajatantra Party (RPP) which has five seats in the Province Assembly, however, remained neutral. The opposition party, Nepali Congress, boycotted today's Province Assembly meeting.
Sixty-two lawmakers were present in the 93-member Province Assembly today.
Upendra Yadav files writ at SC against Election Commission
Janata Samajbadi Party Nepal Chairman Upendra Yadav filed a writ at the Supreme Court against the Election Commission.
He filed the writ at the Supreme Court on Monday afternoon demanding annulment of the decision of the Election Commission to recognize the party formed after splitting the original party.
Saying that the new party is unconstitutional, Yadav demanded an interim order to scrap the decision of the Election Commission who gave recognition to that party.
The hearing on the writ will be held on Wednesday.
Janata Samajbadi Party Nepal senior leader Ashok Rai along with seven lawmakers formed a new party (Janata Samajbadi Party) and registered it at the Election Commission when Yadav was in the United States.
The Election Commission gave recognition to the new party last Monday.
Now, his party has only five lawmakers.
PM says House deadlock will be ended by forging political consensus
Prime Minister Pushpa Kamal Dahal has expressed his confidence that the deadlock in the Parliament will end soon.
PM Dahal, also Chairman of CPN (Maoist Center), said this while talking to party cadres in eastern Chitwan today.
He said that the formal and informal talks were in progress with party leaders regarding resuming the House proceedings and these talks will give results very soon.
He further shared that they will reach a conclusion to end the House deadlock by this evening. On another note, the Prime Minister argued that there was no confusion in continuity of the present ruling coalition partners.
He said that they will forge consensus to pass the policies and programs of the government and upcoming budget. The PM also opined that there will be proper relations between the policies and programs with the budget.
According to him, the government will put the agriculture sector in high priority along with promoting the agro based industries. "The budget will address the issues of marginalized, disadvantaged and poor people and sectors," the PM added.
Prime Minister Dahal said that the government has worked effectively to control the crime and has brought the 143 ropanis of lands of Lalita Niwas under the possession of Nepal Government.
More than average rainfall likely in this monsoon: Met Department
The Department of Hydrology and Meteorology has predicted more than average rainfall in monsoon this year.
Speaking at a program organized by the National Monsoon Forum today, Department's meteorologist Sudarsan Humagai said rainfall more by 35.4 to 55.4 percent than average has been predicted in most parts of the country in the coming monsoon.
The north-west part of the Sudurpashim Province, the south-east part of Bagamati, the central part of Madhesh and the central and mid-west parts of Koshi Province are likely to see more rain (35.4 percent to 65.5 percent) than average this time.
Similarly, the western part of the Karnali, central part of Gandaki, and north-east part of Koshi are likely to witness rain more by 35-45 percent than average.
The minimum precipitation in most parts of the county is likely to be more than average by 35-65 percent.
Nepse surges by 24. 39 points on Monday
The Nepal Stock Exchange (NEPSE) gained 24.39 points to close at 1,998.89 points on Monday.
Similarly, the sensitive index surged by 5.83 points to close at 356. 65 points.
A total of 9,541,017-unit shares of 320 companies were traded for Rs 3. 40 billion.
Meanwhile, Narayani Development Bank Limited (NABBC), Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ) and Mandu Hydropower Limited (MANDU) were the top gainers today, with their price surging by 10. 00 percent.
Likewise, CYC Nepal Laghubitta Bittiya Sanstha Limited (CYCL) was the top loser as its price fell by 5.65 percent.
At the end of the day, total market capitalization stood at Rs 3. 16 trillion.
On paper, economy is doing fine
Latest economic data coming from the central bank should provide some succor to the government, though the situation on the ground remains pretty dire.
According to the recently-published report about the Current Macroeconomic and Financial Situation of Nepal, as of mid-May of the current fiscal (2024-25), the CPI-based Inflation remained within expectations while balance of payment remained at a surplus even as foreign exchange reserves surged.
Per the report, CPI-based inflation remained 4.61 percent on a year-to-year basis compared to 7.76 percent in the corresponding period last year. Food and beverage inflation stood at 5.21 percent whereas non-food and service inflation stood at 4.14 percent in the review month.
Under the food and beverage category, year-on-year (y-o-y) price index of spices increased 22.64 percent, vegetable 16.99 percent, pulses and legumes 10.94 percent, cereal grains and their products 7.59 percent and non-alcoholic drinks 6.06 percent in the review month. The y-o-y price index of ghee and oil decreased 10.10 percent.
Under the non-food and services category, the y-o-y price index of miscellaneous goods and services sub-category increased 12.81 percent, recreation and culture 12.61 percent and education 7.31 percent whereas the y-o-y price index of transportation sub-category decreased 0.33 percent.
The y-o-y consumer price inflation in the Kathmandu Valley, Tarai, Hills and Mountains stood at 4.06 percent, 4.58 percent, 5.33 percent and 4.32 percent against 8.57 percent, 7.68 percent, 7.01 percent and 7.47 percent, respectively a year ago.
A remittance surge
Remittance inflows increased 19.8 percent to Rs 1082.62bn in the review period compared to an increase of 24.2 percent in the same period of the previous year. In US dollar terms, remittance inflows increased 17.7 percent to 8.15bn in the review period compared to an increase of 13.9 percent in the corresponding period of the previous year.
The number of Nepali workers (both institutional and individual) taking first time approval for foreign employment reached 329,422 while the number of those taking approval for renewed entry reached 212,721 against 387,839 and 217,959, respectively in the previous year.
The current account remained at a surplus of Rs 179.48bn in the review period against a deficit of Rs 60.43bn in the same period of the previous year. In US dollar terms, the current account registered a surplus of 1.35bn in the review period against a deficit of 468.3m in the same period last year.
Capital transfer decreased 19.2 percent to Rs 4.78bn and net foreign direct investment (FDI) remained a positive of Rs 6.48bn in the review period against Rs 5.91bn and Rs 2.62bn, respectively in the corresponding period last year.
BoP in surplus
Balance of payments (BoP) did a fine balancing act, remaining at a surplus of Rs 365.16bn in the review period against a surplus of Rs 174.28bn in the same period of the previous year. In US dollar terms, BoP remained at a surplus of 2.75bn in the review period against a surplus of 1.32bn in the same period of the previous year.
Another vital indicator, gross foreign exchange reserves witnessed a healthy growth, increasing 24.2 percent to Rs 1911.86bn in mid-April 2024 from Rs 1539.36bn in mid-July 2023. In US dollar terms, gross foreign exchange reserves increased 22.7 percent to 14.36bn in mid-April 2024 from 11.71bn in mid-July 2023.
Of the total foreign exchange reserves, reserves held by NRB increased 25.4 percent to Rs 1688.21bn in mid-April 2024 from Rs 1345.78bn in mid-July 2023. Reserves held by banks and financial institutions (except for NRB) increased 15.5 percent to Rs 223.65bn in mid-April 2024 from
Rs 193.59bn in mid-July 2023.
The share of Indian currency in total reserves stood at 21.6 percent in mid-April 2024.
Based on the imports of nine months of 2023-24, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 15 months, and merchandise and services imports of 12.5 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 33.5 percent, 104 percent and 28.9 percent, respectively in mid-April 2024. Such ratios were 28.8 percent, 83 percent and 25 percent, respectively in mid-July 2023.
Government expenditure up
Government’s expenditure amounted to Rs 909.39bn and revenue collection Rs 748.04bn during the review period. Compared to a surge of 18.7 percent in the last fiscal, government expenditure decreased 3.6 percent in the review period. The recurrent expenditure, capital expenditure and financial expenditure amounted to Rs 644.03bn, Rs 97.38bn and Rs 167.99bn in the review period.
Total revenue mobilization of the government (including the amount to be transferred to provincial and local governments) stood at Rs 748.04bn. Revenue mobilization recorded a growth of 9.4 percent in the review period in contrast to a decrease of 13.4 percent in the same period of the last fiscal. Tax revenue reached Rs 671.12bn while non-tax revenue stood at Rs 76.93bn.
Broad money (M2) increased 7.5 percent in the review period compared to an increase of 6.4 percent in the corresponding period of the previous year. On a y-o-y basis, M2 expanded 12.3 percent in mid-April 2024. Net foreign assets (NFA, after adjusting foreign exchange valuation gain/loss) increased Rs 365.16bn (25.1 percent) in the review period compared to an increase of Rs 174.28 bn (15.1 percent) in the corresponding period of the previous year.
During the review period, reserve money increased 6.4 percent compared to an increment of 2.5 percent in the corresponding period of the previous year. On a y-o-y basis, the reserves increased 14.6 percent in mid-April 2024.
The total trade deficit decreased 2.8 percent to Rs 1053.42bn during the review period, a dismal figure compared to a decrease of 17.1 percent in the corresponding period of the previous year. The export-import ratio remained at 9.8 percent in the review period like in the corresponding period of the previous year.
PM needs to seek vote of confidence for fourth time
Prime Minister Pushpa Kamal Dahal has to take a vote of confidence for the fourth time.
He had to seek a vote of confidence for the fourth time after the Janata Samajbadi Party Nepal-led by Upendra Yadav withdrew support extended to the government.
The Janata Samajbadi Party Nepal decided to withdraw support to the government as the party was feeling uncomfortable to work together with the ruling coalition parties remaining in the government, JSPN spokesperson Manish Suman said.
Deputy Prime Minister and Minister for Health and Population Upendra Yadav and Minister of State for Health and Population Deepak Karki resigned from their post on Monday morning.
There is a constitutional provision that the prime minister should seek a vote of confidence within 30 days if the party participating in the government withdraws the support.
Prime Minister Dahal sought a vote of confidence for the time on January 10, 2023, second time on March 20, 2023 and third time on March 13, 2024.
He was appointed as the Prime Minister on December 25, 2022.
JSPN withdraws support to Dahal-led government
The Janata Samajbadi Party Nepal has withdrawn support extended to the Pushpa Kamal Dahal-led government.
A Central Committee meeting of the party held on Monday decided to withdraw support to the Dahal-led government, leader Deepak Karki informed.
Deputy Prime Minister and Minister for Health and Population Upendra Yadav and Minister of State for Health and Population Deepak Karki resigned from their post on Monday morning.
Yadav mentioned in his resignation letter that he decided to resign as he could not work efficiently together with the ruling coalition parties remaining in the government in the developing political situation.
The Chairman Janata Samajbadi Party Nepal told Annapurna Post, the sister publication of The Annapurna Express, that he resigned as he was not feeling comfortable coordinating with the CPN-UML and CPN (Maoist Center).
“The major parties of the incumbent government have played a crucial role in splitting the Janata Samajbadi Party Nepal. I have serious dissatisfaction over the working style of the UML-Maoist Center,” he said.
