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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.

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.

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.

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.

A total of 30,199 foreign tourists visited the Annapurna region in the month of March. This includes 14,668 tourists from South Asian countries and 15,531 tourists from other countries, according to the Annapurna Conservation Area Project (ACAP).

The arrival of tourists has increased with the end of the cold season and the number is expected to grow further in April, said Chief of ACAP Dr Rabin Kadaria.

In 2023, a total of 191,558 tourists from 173 countries had visited the Annapurna region, a record so far. It surpassed the highest so far of 181,000 before the CoronaVirus pandemic in 2019. The number was 129,733 in 2022.

The Annapurna base camp, Mardi Himal, Ghandruk, Tilicho Lake in Manang, Thorangla Pass, Upper Mustang, Muktinath area, Ghodepani in Myagdi on the Annapurna circuit are major attractions for tourists visiting the region.

Kaski, Lamjung, Manang, Myagdi and Mustang fall under the ACAP spread over an area of 7600 square kilometers.

Nehru Joshi is the program coordinator at Genius IB World School. ApEx talked to her about Nepal’s education system, students and teaching-learning process and more. 

How can we create a more children-friendly learning environment in schools? 

The notion of education has significantly evolved beyond the traditional confines of textbook-centric learning. We're currently witnessing an exhilarating transformation phase within our education system, where learning extends far beyond the pages of textbooks and four walls of a classroom. Today’s education models are child-friendly and immersive, focusing on holistic development, hands-on experiences, and real-world application. We’re integrating technology into our classrooms, not just for the sake of using gadgets, but to make learning interactive, engaging, and relevant. We focus increasingly on experiential learning—taking learners outside the traditional settings to learn through experience.This approach encourages creativity, critical thinking, and emotional intelligence, ensuring learners are not merely carrying book bags, but are actively engaging with the knowledge and skills necessary for the 21st century. It’s an exciting time for education, as we ensure that every child feels supported, challenged, and inspired in our education system, not just academically but in all facets of their development.

What are the ways to make our education more practical oriented? 

Integrating hands-on learning experiences, applying real-world contexts, and fostering interdisciplinary learning within educational curriculums are crucial steps toward making education more applicable and engaging for learners. Such an approach not only cultivates critical thinking and problem-solving skills but also encourages learners to analyze and understand concepts deeply. By adopting inquiry-based learning, we can encourage learners to examine context from both local and global perspectives. This engagement helps become a lifelong learner and fosters an international-mindedness. This educational method facilitates engagement with complex issues beyond traditional subject boundaries, potentially improving academic outcomes.

 There are views that private sector education is too expensive and so they should be converted into public schools. What are your views on it? 

Private-sector education, while often associated with higher costs, plays a crucial role in the broader educational ecosystem. One of the core strengths of private schools is their ability to provide highly personalized education. This is due in part to smaller class sizes, which enable teachers to engage more deeply with each student, understanding their unique learning styles, challenges, and strengths. Moreover, private schools often have the flexibility to adopt innovative teaching methods and pedagogies. This agility allows them to adapt to the latest educational research and technological advancements, offering students a relevant and forward-thinking education that prepares them for the complexities of the modern world. In addition, the diverse extracurricular programs contribute to the holistic development of students. These programs, ranging from performing arts, mental and emotional wellness, visual arts, design and technology to sports and beyond, are essential for nurturing well-rounded individuals who excel not only in their academic pursuits but also in their personal growth.

In Nepal, where education is a pivotal element for development, the partnership between private and public schools can be particularly impactful. Private institutions can bring in their expertise in curriculum development, teacher training, and the integration of technology in education. This synergy can help uplift the overall quality of education, making it more accessible and inclusive. Such partnerships can serve as a bridge, ensuring that the advantages of private education are not confined to those who can afford it but are extended to a wider population, ultimately strengthening Nepal’s education system.

Do you agree that SEE should be canceled? 

My perspective is that while standardized assessments have their place in evaluating certain academic achievements, they shouldn’t be the sole measure of a child’s progress or potential. The real essence of education extends far beyond what can be captured in a standardized test. We’re preparing students not just academically but for life, which involves a myriad of skills and attributes that standardized tests simply cannot assess. Instead, we should prioritize ongoing assessment strategies that monitor a child’s holistic development, including language proficiency, interpersonal skills, creative thinking, critical thinking, emotional skills, and problem-solving abilities. This approach recognizes and nurtures the diverse strengths and challenges of each child, offering continuous feedback for timely support. It respects the fact that learning is a process, not a destination, and that each child progresses through this process at their own pace and in their own way. Unlike standardized tests that capture a mere snapshot, ongoing assessments provide a comprehensive view of a child’s capabilities, fostering well-rounded individuals ready to face complexities with confidence.

There are preparations to keep school education under the local government, is it justifiable?

In my opinion, decentralizing education to keep it under local government control can significantly contribute to country development and economic growth by tailoring education to local needs, cultures, and economic conditions. This approach allows for more agile implementation of educational programs, closer quality assurance, and more effective monitoring of outcomes. By involving local communities in decision-making, it not only enhances democracy in education but also ensures that educational strategies are more aligned with local priorities, which can lead to increased relevance and effectiveness of education. This relevance can drive better educational outcomes, leading to the local economic context, thereby stimulating economic growth. Moreover, local control can foster innovation in teaching methods and curriculum design, as local authorities can more easily experiment and innovate based on immediate feedback and results, contributing further to the overall development of the country’s education system.

Police have arrested a CPN (Maoist Center) leader Kali Bahadur Kham.

Kham, who is said to be the mastermind of the murder of Ram Hari Shrestha, a businessman close of the CPN-UML, was apprehended from Thamel, Kathmandu, a police source said.

Kham is accused of abducting and murdering Shrestha.

Also the central member of the Maoist Center, he was at large to evade the arrest.

The House of Representatives (HoR) has endorsed the Charter of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

A meeting of the lower house of the Federal Parliament today passed with majority support for the proposal seeking endorsement of the BIMSTEC Charter, presented by Deputy Prime Minister and Minister for Foreign Affairs, Narayan Kaji Shrestha. 

Replying to queries that came up during the discussions on the provisions of the BIMSTEC Charter in the HoR meeting, DPM and Foreign Affairs Minister Shrestha said the government agreed to the ideas put forth by lawmakers regarding the necessity of BIMSTEC and endorsement of its Charter.

Stating that Nepal has been participating and playing a positive role in the multilateral and regional organizations, he reminded of Nepal's involvement in multilateral world bodies like the United Nations Organization as well.

"We have been making efforts towards rendering the regional organizations also effective through our participation. We show our participation and play our role in the forums where we see our nation's interests align," Minister Shrestha reiterated.

Sharing about the reality of not being able to make the South Asian Association for Regional Cooperation (SAARC) active, he expressed the commitment to adopting further initiatives to render it more effective.

"BIMSTEC is not the replacement of SAARC and it should not be. Nepal does not agree to the notion of moving ahead BIMSTEC at the cost of SAARC. We are for making the SAARC vibrant and will play an active role for that in the capacity of the SAARC Chair," DPM and Foreign Affairs Minister said.

Informing the House that all the member nations, including Nepal, had signed the BIMSTEC Charter during the Fifth Summit of BIMSTEC held in 2022 in Sri Lanka, he mentioned about the Charter's clear provisions that it will come into force only after its endorsement by parliament. "Information has been received that apart from Nepal six member countries have got the BIMSTEC Charter endorsed from their respective parliaments. There is the provision that the Charter will go into implementation 30 days after its endorsement by Nepal," he said.

Taking part in the discussions on the provisions of the BIMSTEC Charter, lawmaker Dr Swornim Wagle of the Rastriya Swatantra Party hailed the endorsement of the Charter by Nepal's Parliament. He stated that the Preamble, objectives and principles of BIMSTEC were positive, saying there were no provisions in the Charter which undermined Nepal's sovereignty.

"BIMSTEC is awakening only recently with the goal of forging regional collaboration on issues of economic prosperity. If we could take it forward by promoting and prospering it, it is bound to be to the benefit of Nepal," he said.

CPN-UML lawmaker Raghuji Panta said Nepal could reap benefits from BIMSTEC on the technical, educational and research issues.

Stressing on the need of moving ahead keeping the national interest at supreme, he mentioned that the government should pay attention to the benefits Nepal can take from regional organizations.  

Nepali Congress lawmaker Sita Mizar expressed the view that the government should take further efforts to take benefits from BIMSTEC. 

Lawmakers—Bidya Bhattarai, Dipa Sharma, Ishwori Gharti, Sunita Baral, Eknath Dhakal, Manish Jha, Ganesh Parajuli, Sobita Gautam, Pradeep Yadav, Devendra Poudel, Madhav Sapkota, Narayani Sharma, Purna Bahadur Gharti Magar, Abdul Khan, Prem Suwal, Sonu Murmu, Binita Kumari Singh and Damodar Poudel 'Bairagi' had participated in the discussion on the proposal. 

The Article 279 (1) of the Constitution of Nepal has the provision that the ratification of a treaty and agreement to which Nepal is to become a party shall be as provided for in the federal law.

Clause 4 of the Nepal Treaty Act 2027 has the provision that the Government and Council of Ministers has to table the charter at the Federal Parliament for approval. As per the provision, the government tabled the BIMSTEC charter in the parliament for approval.

BIMSTEC was formed in 1997 with an objective making regional coordination on the issues like economic prosperity, social progress, scientific achievement, peace, stability and connectivity. Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand are members of BIMSTEC. Nepal became a member of BIMSTEC in 2004.

The next meeting of the Parliament will be held at 11 am tomorrow.