Two Kala-azar cases found in Jhapa
Two new cases of Kala-azar have been found in Jhapa, a district in the Terai region of Koshi Province. Similar cases have been reported in previous years as well.
The Health Office in Jhapa has confirmed that the infections were reported in Birtamod Municipality-5 and Shibashatakshi Municipality.
Following illness, the people visited the Dharan-based BP Koirala Institute of Health Sciences and were diagnosed with the infections. Both the infected are males.
The Public Health Office, Jhapa is currently undertaking efforts to raise public awareness about Kala-azar and its prevention measures, while also actively searching for potential cases.
These efforts are being carried out in collaboration with local representatives, women's health volunteers, and other relevant stakeholders. Kala-azar (black fever) can be fatal if left untreated.
Kala-azar is a parasitic disease transmitted through the bite of infected female sandflies.
Election for NA Vice-Chair on April 10
An election for the post of National Assembly (NA) Vice-Chairperson is scheduled to take place on April 10.
NA Chair Narayan Prasad Dahal apprised the House today of the election schedule for the post of upper house Vice-Chairperson. The NA Vice-Chairperson’s post has been vacant since Urmila Aryal resigned on March 28.
The NA Chair has directed the Federal Parliament Secretary General Padam Prasad Pandey to publish the election schedule.
The NA shall meet again at 1:15 pm on April 10.
Nepse plunges by 3. 43 points on Wednesday
The Nepal Stock Exchange (NEPSE) plunged by 3. 43 points to close at 2,006.78 points on Wednesday.
Similarly, the sensitive index dropped by 3. 43 points to close at 355. 77 points.
A total of 6,481,834-unit shares of 322 companies were traded for Rs 2. 53 billion.
Meanwhile, Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) was top gainer today with its price surging by 10. 00 percent. Likewise, River Falls Power Limited (RFPL) was the top loser with its price dropped by 4. 40 percent.
At the end of the day, the total market capitalization stood at Rs 3. 18 trillion.
NC continues to advocate for formation of parliamentary probe committee
The main opposition Nepali Congress (NC) has continued to advocate for forming a parliamentary committee to probe into issues about cooperative mismanagement.
Taking time in a meeting of the House of Representatives today, party General Secretary Bishwa Prakash Sharma reiterated the party's voice for forming the parliamentary panel to investigate the alleged connection of Deputy Prime Minister and Minister for Foreign Affairs in the cooperative fraud.
He utilized the forum to argue that the House is neither a venue for convicting anyone of any offense nor giving a clean chit on the charge. "Instead, the matter should be addressed through a due process."
Lawmaker Sharma also expressed concern over what he said the ruling party declaring the minister innocent from the House.
"The practice of declaring anyone guilty or innocent from a rostrum or a parliamentary floor is not good. If the Home Minister is not guilty, the right to be declared innocent by a parliamentary committee should be guaranteed."
He presented three reasons clarifying the need to form a parliamentary body to address the matter. "It is due to the realization of a conflict of interest, suspension of an official investigation into the cooperatives, and the issue requiring to be addressed by the parliamentary procedures."
The NC lawmaker wanted the government to bring a proposal to form the committee in the next lower house session.
He warned that the party would take up the issue more seriously in the days ahead and it is committed to its stance (of forming a parliamentary probe committee).
The ultimatum to the government for proceeding ahead with the constitution of the committee has been over, he said, hinting about the party's preparations for further amplifying the programs of protests over the matter.
He said that there is a misunderstanding at the civic level that the parliamentary proceedings have been halted due to the NC obstruction. On March 31, the Parliament held discussions on the agreement related to the International Solar Alliance (ISA). The following day, a proposal to seek considerations on the power trade bill was presented and on April 2, the House endorsed the BIMSETC Charter. He said he wanted to inform all Nepali citizens at home and abroad that the House continues its business.
Lawmaker Sharma said an atmosphere should be built for implementing a House calendar, making the House more systematic and accountable. Any matters that are at variance with the meeting agenda will be rejected by the party.
He also protested the presentations of issues in the rostrum sans an agreement in the Parliamentary Business Advisory and Consultative Committees.
Speaker Devraj Ghimire said the Constitution incorporates the provisions allowing time for the Prime Minister or a Minister to put views in the Parliament if requested. It is our practice and tradition to grant time to the Prime Minister and Ministers to express views if demanded, he said.
Domestic debt to be managed by PDMO now onwards
All tasks related to auction and issuance of domestic debts will now be managed by the Public Debt Management Office (PDMO). Publishing a notice on Sunday, the Nepal Rastra Bank (NRB) announced that the auction and issuance of treasury bills and government bonds will be conducted exclusively through the PDMO starting from April 1.
The Monetary Management Department of the NRB had previously been responsible for all tasks related to domestic debt. Although there were concerns about the same entity handling fiscal and monetary policies, the central bank had been managing public debt in the absence of a separate entity and necessary laws.
The government established the PMDO five years ago specifically for the purpose of managing public debt. While the PMDO was already handling external debt, it will now be responsible for all operations related to domestic debt starting from Monday. “Since the PDMO will make auction decisions based on DOMS, the central bank requests participants to submit bids through both DOMS and OBSS,” the NRB said in the notice.
The Public Debt Management Regulations, 2024, paved the way for the PDMO to handle all domestic debt operations. The regulations were published in the gazette on March 14. According to the regulations, the PDMO should manage public debt by maintaining consistency between fiscal and monetary policies. Similarly, it will be responsible for granting licenses to market makers and sales agents, as well as monitoring their transactions. The PDMO will be required to publish the annual schedule for mobilizing domestic debt, auction schedule, and any revised schedules by informing the Nepal Rastra Bank (NRB).
As per the regulations, the Revenue Secretary will chair the Debt Instrument Issuance and Operation Committee that will prepare the schedules. Joint secretaries of the Economic Policy Analysis Division of the Ministry of Finance and Economic Management Division of the National Planning Commission and the Deputy Auditor General of the Office of the Auditor General will be the members of the committee.
The regulations also state that the interest rate on government debt in the form of overdraft or bonds issued against it shall be equal to the weighted average interest rate of 91-day Treasury Bills for the fiscal year in which the overdraft was taken. With the responsibility of domestic debt management transferred to the PMDO, the Monetary Management Department of NRB will now focus solely on the effective management of monetary instruments, according to NRB officials.
WB projects inflation to remain at 6.7 percent in 2024
The consumer price inflation in Nepal is expected to remain high at 6.7 percent in Fiscal Year 2024, close to the central bank's 6.5 percent ceiling, due to VAT exemptions removal, India's food export restrictions, and increased paddy minimum support prices.
However, inflation is forecasted to decline to 6 percent in FY25 and 5.5 percent in FY26, driven by global commodity price moderation and domestic price containment through monetary policy. Projected lower inflation in India may also help reduce domestic inflation via the currency peg, mitigating imported inflation, the World Bank (WB) stated in its Nepal Development Update (April 2024) it unveiled on Tuesday.
According to the WB, Nepal's economic growth is set to rebound, from 1.9 percent in FY23 to a forecast 3.3 percent in FY24. Growth is then projected to further accelerate to 5 percent on average, over FY25-26. This recovery is largely attributed to the easing of monetary policy, assuming productive use of private sector credit. Additionally, reforms to improve the business environment could attract more private investment, further boosting medium-term growth prospects.
The services sector is expected to be the key driver of growth in the coming years. Accommodation and food services are poised to benefit significantly from the rise in tourist arrivals. The ongoing construction of new five-star hotels and government policies supporting real estate loans are expected to further stimulate the accommodation sub- sector.
Meanwhile, the industrial sector is expected to grow, buoyed by significant expansions in electricity generation capacity, fostering a more conducive environment for industrial activities. However, agricultural growth is projected to slow down due to various factors, including the outbreak of lumpy skin disease among livestock and a decrease in paddy production growth.
The current account balance is forecasted to return to surplus in FY24, driven by robust remittance growth and a narrowing trade deficit, but is expected to narrow subsequently as remittances taper off and the trade deficit expands.
The trade deficit is expected to improve in the medium term, falling below its FY23 level. This is due to a projected decline in goods imports in FY24, although imports are expected to rebound in FY25 and FY26. Goods exports, particularly in electricity, are expected to increase. While services exports could rise with tourism recovery, services imports may surpass exports due to continued emigration. Despite efforts to attract more foreign direct investment, inflows are likely to remain modest.
Nepal's fiscal deficit is poised to decrease significantly from its peak in FY23 (about 6 percent of GDP), stabilizing around 3 percent of GDP in the medium term, despite a projected higher deficit in FY24 compared to the government's revised forecast. Revenue is expected to rise to 20.1 percent of GDP by FY26, supported by robust GDP growth and increased goods imports. Meanwhile, spending is expected to increase to 22.8 percent of GDP by FY26, driven by enhanced execution of public investment.
The National Project Bank’s integrated guidelines, introduced in March 2023, aim to streamline project development and prioritization, contributing to more effective capital spending by FY25. Financing for the fiscal deficit will likely come from external concessional borrowing and domestic sources. However, public debt is projected to decline to 40.8 percent of GDP by FY26 from its FY23 peak because of higher economic growth.
The forecast is subject to both domestic and external risks. Externally, geopolitical uncertainty could trigger a rise in commodity prices, impacting all sectors. A growth slowdown in partner countries might also lead to a drop in remittances and tourism, hindering economic growth. Persistent inflation expectations and lower domestic demand could further dampen economic activity. Natural disasters pose additional risks to sustaining welfare gains. Finally, frequent political changes, a top headwind for businesses for over a decade, could continue to deter private investment.
Nepal's poverty rate fell due to migration and remittances, alongside consumption increases. The recent nationally household survey data from the Nepal Living Standard Survey 2022/23 shows a large decline in poverty from 25 percent to just 3.6 percent between 2011 and 2023 (using the 2011 National Poverty Line). The prosperity gap and inequality also reduced over the same period. However, challenges persist with a weak labor market and limited social assistance, posing risks amid economic and climate shocks.
Overall, H1FY24 data corroborated the structural challenges facing Nepal's economy.
On the fiscal front, the Nepal Development Update highlighted the need to strengthen the execution and efficiency of capital expenditure to boost economic growth, as well as the importance of reducing dependence on imports tax revenue.
Sound and consistent monetary policy will also be key to boosting confidence and stimulating economic growth. Addressing the increasing level of non-performing loans in the financial sector is crucial to strengthen financial stability and support private investment. On the external side, the high dependency on remittance inflows exposes the country to external shocks. Thus, there's a need to strengthen Nepal's international competitiveness for other sources of external earnings, such as tourism and foreign direct investment, by boosting exports of goods.
KMC urges institutional schools to keep their names embodying Nepali identity
Kathmandu Metropolitan City (KMC), Education Department has urged the institutional schools under the metropolis to name the schools embodying the Nepali identity.
Issuing a public notice today, the Education Department asked the institutional schools for the same.The Department reminded that the Rule 154 (1) of Education Regulations, 2059 (with amendment) and Rule (70) of KMC School Education Management Regulation, 2074 have the provision that schools should be named, reflecting the Nepali identity.
The Department also directed such institutional schools under the KMC to contact the KMC Education Department within seven days, saying the names of most institutional schools are found against this provision.
The notice reads that legal process could be forwarded as per the law like prohibiting the student admission process if a process to name the school reflecting Nepali identity is not adopted and contacting the Department within a week.
The Department asked such institutional schools to file application at the KMC within 35 days of deciding the name from school management committee.
Nepal and Switzerland discuss bilateral cooperation on trade and tourism
The Nepal-Switzerland Bilateral Consultations Mechanism (BCM) meeting in Switzerland reviewed the entire spectrum of Nepal-Switzerland relations including economic ties, development partnership, multilateral cooperation, and contemporary global issues such as climate change and human rights.
The BCM also discussed the exchange of high-level visits, Nepal’s graduation from the LDC category, progress made towards meeting the Sustainable Development Goals, and ways to further enhance bilateral cooperation on trade, investment, tourism, science and technology, and vocational training, among others, according to the Nepali Embassy in Geneva.
The fourth meeting of the Nepal-Switzerland BCM was held at the Federal Department of Foreign Affairs (FDFA) in Bern, Switzerland on Tuesday.
Head of the Europe-Americas Division of the Ministry of Foreign Affairs of Nepal, Joint Secretary Ganesh Prasad Dhakal and Assistant State Secretary for Asia and the Pacific in the FDFA of Switzerland, Heinrich Schellenberg led the respective delegations.
Nepali delegation included Ambassador of Nepal to Switzerland, Ram Prasad Subedi and the Embassy Officials whereas the Swiss Delegation included officials from the FDFA and the Swiss Agency for Development and Cooperation (SDC).
On the occasion Joint Secretary Dhakal requested the Swiss side to encourage the participation of their investors in the upcoming Nepal Investment Summit being held in Kathmandu this month.
The Nepali side thanked the Swiss Government for consistently placing Nepal as a priority country for Swiss Development Cooperation. While expressing satisfaction over Nepal’s progress, the Swiss side assured of their continued support to Nepal’s development endeavors.
Nepal-Switzerland Bilateral Consultations Mechanism was established in 2015 and the next meeting will be held in Kathmandu on mutually convenient dates, adds the Embassy.
