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Prime Minister Pushpa Kamal Dahal has issued a directive not to collect the fees increased by the Ministry of Labor and Employment from the workers.

He made such a directive during a meeting held at the Prime Minister’s Office in Singha Durbar on Tuesday.

During the meeting with the minister, secretary and other government employees this afternoon, Prime Minister Dahal recalled that the Nepalis who have gone abroad in search of green pastures have made a significant contribution in the country’s economy.

He directed the concerned authority not to implement the decision of the Ministry to put extra financial burden on them.

Meanwhile, the Prime Minister issued a directive to make arrangements to issue labor permits again from all the 753 local units.

Nepal Telecommunication Authority Chairman Purushottam Khanal has resigned from his post on Tuesday.

Khanal tendered his resignation after he was accused of being involved in the irregularities in the purchase of systems such as Mobile Device Management System (MDMS) and Teramocs among others.

Minister for Communications and Information Technology Rekha Sharma was dissatisfied with the working style of Khanal recently.

Minister Sharma had even asked for clarification after he was accused of being involved in irregularities.

Khanal resigned from his post after Minister Sharma was preparing to sack him in the Cabinet meeting.

The Prime Minister’s Office had summoned him on Monday for a discussion.

During the discussion, the Prime Minister’s secretary objected to his working style.

The Public Accounts Committee of the Parliament has also directed the Commission for the Investigation of Abuse of Authority to carry out an investigation into the process of purchasing Teramocs technology.

Banks and financial institutions (BFIs) are awash with cash. Although the lending capacity of BFIs has increased, demand for loans has dropped. Recognizing excessive liquidity in the banking system, the Nepal Rastra Bank (NRB) has absorbed Rs 180bn from the banking system through various monetary instruments since mid-December.

Additionally, the central bank has been working to maintain inter-bank lending rates within the prescribed limit. Although the central bank had previously stated that it would prevent inter-bank lending rates from falling below three percent, these rates have, in fact, dipped below three percent for some time. In March of the previous year, the inter-bank lending rate had surged to as high as 7-8 percent due to a tight liquidity situation.

“After the inter-bank rate fell below the prescribed limit, we absorbed liquidity from the system through deposit auctions. This action helped the interbank lending rates to go above the limit on Jan 3 and 4,” explained NRB Spokesperson Dr Gunakar Bhatta. “Banks currently hold liquidity of around Rs 100bn, excluding the four percent cash reserve ratio that they are required to maintain.”

One of the contributing factors to the increasing liquidity in the banking system is the drop in imports. The demand for credit from other sectors is also not satisfactory, Dr Bhatta added.

Commercial banks, development banks, and financial institutions collectively have a credit extension capacity of Rs 433bn. The total deposits of BFIs have risen to Rs 6.06trn, with Class ‘A’ banks alone holding deposits amounting to Rs 5.37trn. Development banks and financial institutions have mobilized Rs 696bn in deposits. According to the central bank, banks are reporting an annual deposit growth of Rs 500bn. However, their lending capacity has not seen a corresponding increase.

BFIs have invested around Rs 5.02trn, with the investment of commercial banks alone reaching approximately Rs 4.44trn. Similarly, development banks and financial institutions have extended credit amounting to an additional Rs 582bn.

Bankers acknowledge that banks have not been able to invest as much as they wanted. “Banks are finding themselves awash with loanable funds also because the working capital policy prohibits them from extending new loans in the final month of the quarter,” Nepal Bankers Association (NBA) President Sunil KC said. “As banks prioritize the recovery of old loans over new investments in the last month, the size of loanable funds has consequently expanded.”

Private sector leaders say that businesses are struggling to meet their existing obligations, let alone secure new credit. Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the private sector was seeing a 20-30 percent decline in both production and sales. “This has made loan servicing difficult for businesses,” Dhakal said. “Businesses are hesitant to seek new credit also due to uncertainties about policy stability in the coming days.”

Dhakal, however, said he was hopeful of positive upturn in the coming days. “With the gradual fall in interest rates, confidence is expected to be restored among both the private sector and general consumers. The recent policy decisions of the central bank are favorable. The government has also expressed commitment to settle outstanding dues and expedite capital spending,” Dhakal added. A recent survey conducted by the Confederation of Nepalese Industries (CNI) reveals that the overall demand has declined. “Industrial raw material prices are rising, but their import is falling,” the CNI survey report stated.

The Nepal Electricity Authority (NEA) has announced a five-year installment facility for the payment of electricity tariff dues related to dedicated and trunk line services.

In a public notice issued today, the NEA has urged relevant entities to submit applications for installment facilities at the respective NEA distribution centers within the next 30 days.

Following a decision made during the January 1 meeting of the NEA Board of Directors, industries are now eligible for a one-time installment facility to settle their dues associated with dedicated and trunk line services.

The NEA has taken this step, in response to the accumulated electricity dues from 61 industries, amounting to Rs 22.24 billion.

Consequently, power supply to 24 industries has been disconnected. 

The price of gold has dropped by Rs 200 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 118, 600 per tola today. It was traded at Rs 118, 800 per tola.

Meanwhile, tejabi gold is being traded at Rs 118, 050 per tola. It was traded at Rs 118, 250 per tola.

Similarly, the silver is being traded at Rs 1,415 per tola today.

Two persons died when two motorcycles collided with each other in Mahottari along the Jaleshwor-Bardibas road on Monday.

The deceased have been identified as Mukesh Chamar (30) of Thalahi Birta of Ramgopalpur Municipality, and Dharmendra Mahato (32) of Bhangaha Municipality-3, according to Deputy Superintendent of Police at District Police Office, Dilip Kumar Giri.

Two pillion riders were injured in the accident.

Shree Ram Gosai (32) of Bhangaha-5, and Pradip Kumar Yadav (36) of Bardibas Municipality are undergoing treatment at Shuva Swastik Hospital, Bardibas.

Although both bike riders were taken to hospital after the accident, they breathed their last during the treatment.

Police said that they are looking into the incident.

Prime Minister Pushpa Kamal Dahal has called upon relevant authorities to seek the middle-way for finding a solution to the ongoing disputes concerning trunk and dedicated electricity line tariffs.

In a discussion held at the Office of the Prime Minister and Council of Ministers today, the Prime Minister underlined the need of creating a situation where the Nepal Electricity Authority (NEA) can recover its dues, and industries can resume operations promptly.

He suggested considering the directives of the Commission for the Abuse of Authority and various committees under the federal parliament while exploring ways for sorting out the matter. He stressed on the need of seeking opinions from the Office of the Attorney General in reaching a conclusive decision, urging relevant bodies to explore alternative ways for resolving the matter.

During the meeting, Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basent, assured that the government is actively working to resolve the issue based on available facts and existing laws. He said that entrepreneurs have been given installment options to pay their dues, expressing hope that the matter will be resolved through consensus and legal consultations with the Office of the Attorney General.

Similarly, Minister for Industry, Commerce, and Supplies, Ramesh Rijal, who was also present in the meeting, appealed to the government to facilitate finding solutions to the genuine concerns of industrialists. The Ministry is coordinating efforts to establish common ground for the restoration of industrial operations, according to him.

Government Chief Secretary Dr Baikuntha Aryal was of the view of seeking solutions in accordance with decisions made by the Electricity Regulatory Commission and existing laws and working procedures.

Nepal Electricity Authority (NEA) Managing Director Kulman Ghising briefed the meeting about NEA's priorities, duties, and future plans.  He assured that the disputes regarding trunk and dedicated power lines would be addressed positively." The NEA anticipates reaching a concrete decision in consultation with the Electricity Tariff Fixation Commission."

National Planning Commission Vice Chair Dr Min Bahadur Shrestha and Energy Secretary Gopal Prasad Sigdel, among others were present in the meeting.

The Nepal Stock Exchange (NEPSE) gained 36.57 points to close at 2,059.49 points on Monday.

Similarly, the sensitive index surged by 4.27 points to close at 377. 28 points.

A total of 13,709,276-unit shares of 309 companies were traded for Rs 4. 67 billion.

Meanwhile, Singati Hydro Energy Limited, Modi Energy Limited, Trishuli Jal Vidhyut Company Limited and Muktinath Krishi Company Limited were the top gainers today, with their price surging by 10. 00 percent.

Likewise, Narayani Development Bank Limited was the top loser as its price fell by 5.46 percent.

At the end of the day, total market capitalization stood at Rs 3. 23 trillion.