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A meeting of the taskforce formed to finalize the terms of reference of the parliamentary probe committee on the issues of cooperative fund embezzlement is underway at the Ministry of Law, Justice and Parliamentary Affairs.

The committee members also held discussions on Thursday to finalize the ToR but the meeting ended inconclusively.

The main opposition Nepali Congress has been obstructing the meeting of both houses demanding the formation of a parliamentary committee for conducting an impartial investigation into the alleged involvement of Deputy Prime Minister and Home Minister Rabi Lamichhane in the cooperative fraud case.

An understanding was reached on May 18 between the ruling parties and the opposition NC to form the probe committee.

Minister for Law, Justice and Parliamentary Affairs, Padam Giri, CPN-UML Chief Whip Mahesh Bartaula, NC leaders Gyanendra Bahadur Karki and Jeevan Pariyar and Shishir Khanal of the Rastriya Swatantra Party are in the task force.

President Ram Chandra Paudel and Prime Minister Pushpa Kamal Dahal held a meeting at the President’s Office in Sheetal Niwas on Friday.

According to the President's Secretariat, President Paudel expressed his concerns over the disruptions in the parliamentary meetings.

On the occasion, PM Dahal said that he was working to end the ongoing House deadlock.

Dr Jaya Kumar Gurung has been conducting research on consumption of tobacco and tobacco products for a long time. He is disappointed to see more and more youths getting addicted to smoking. 

He is surprised that the government is remaining oblivious to the fact that tobacco consumption is killing an average of four Nepalis every hour. Last year, he met with the then Finance Minister Janardan Sharma and senior officials to inform them about the precarious situation.

“I went right to the doors of the finance ministry and requested then Minister Janardan Sharma to bring programs to control consumption of tobacco products. But he told me cigarettes had been requesting him not to increase taxes on cigarettes and tobacco products,” Dr Gurung, who is affiliated to the Nepal Development Research Institute, said. He tried to meet the incumbent finance minister, but was denied appointment.

Powerful traders, helpless government

Tobacco consumption has emerged as a major public health problem in Nepal. Every year, 37,529 people die due to its use. Senior ENT specialist Dr  Dhundi Raj Poudel accuses the government of being a mute spectator even as consumption of tobacco products is affecting all organs in the human body. “Tobacco traders seem powerful while the government is helpless,” Dr Poudel said. “People are falling into the trap of tobacco products. Some are dying premature deaths, but the guardian government is remaining indifferent.”

According to Gurung, about 34 percent of the population consumes tobacco products. The use of new tobacco products like hookah and e-cigarettes is increasing, especially among youths. “The consumption of tobacco products causes cancer, and respiratory and heart diseases. If we calculate the direct or indirect costs of treatment for these diseases, loss of productivity of the patients, and the cost of deaths, the annual loss amounts to billions of rupees,” Dr Gurung added.

In fiscal year 2022/2023, the government collected Rs 30.61bn through different taxes from tobacco products. “Considering the direct or indirect costs of treatment for diseases caused by tobacco consumption, loss of productivity of patients, and the cost of deaths, the annual loss amounts to Rs 44bn. This loss calculation does not include the losses caused by smokeless tobacco products,” he said. “Even after tax revenue is factored in, the country is suffering a loss of Rs 13bn every year.”

Call to raise taxes

Although the World Health Organization (WHO) has set a benchmark of imposing a 75 percent tax on tobacco products, Nepal is levying only around 41 percent tax. The tax rates in Nepal are the lowest in South Asia, according to Dr Gurung. “If the excise duty on tobacco products is not significantly increased in the coming budget, we will have to understand that the government is not serious about this issue, and that it is working under the pressure and influence of tobacco producers,” he added.

Taxes on tobacco products account for only 2.59 percent of total tax collection in Nepal. In comparison, Bangladesh collects 9.53 percent of its taxes from tobacco products.  Among South Asian countries, Sri Lanka has the highest tax rate of 77 percent on tobacco products followed by Bangladesh (73 percent), Pakistan (60.78 percent) and India (57.6 percent). Neighboring China levies 55 percent tax on tobacco products.

The government had been increasing taxes on tobacco products by around 10 percent annually in the past. In the fiscal year 2023/24, it raised such tax by only around three percent. “Government officials say increasing taxes on tobacco products will lead to an increase in illegal trade and a loss of revenue. This is an unsubstantiated argument. Producers have managed to influence policymakers through lobbying tactics,” added Dr Gurung.

Stakeholders have suggested that the government raise taxes on tobacco products by at least 35 percent in the coming fiscal year. This will mean an additional Rs 14bn revenue for the government, according to Dr Gurung. Economist Dr Devi Prasad Prasain said since the government revenue is not becoming sufficient to cover even the regular expenses, it is time to increase taxes on tobacco products. “Since the condition of manufacturing industries and businesses is fragile, it is difficult to increase tax rates for them,” Dr Prasain said. “This is, therefore, the right opportunity to increase taxes on tobacco products as it will generate revenue and also benefit public health.”

Dr Bhakta Bahadur KC, chief of the Health Promotion and Tobacco Regulation Section at the Ministry of Health and Population, also suggests increasing taxes to reduce tobacco consumption. “We regularly correspond with the finance ministry advocating for higher tax rates. We have already put forth our suggestions for the upcoming budget,” Dr KC said. “It is necessary to increase the health risk tax, excise duty, and value-added tax on tobacco products.”

Bagmati Province is projected to make the highest contribution to the total Gross Domestic Product (GDP) for the current fiscal year. The preliminary estimate shows that Bagmati Province's contribution to the total GDP will be 36.4 percent in fiscal year 2023/24.

However, Gandaki Province tops the list in terms of GDP growth rates.  According to the National Statistics Office (NSO), the national GDP is estimated to expand by 3.87 percent to reach Rs 5.75trn in the current fiscal year. 

Compared to the revised estimates of the previous fiscal year, the contribution of the provinces to the total GDP has changed only marginally. Compared to the previous fiscal year, the contributions of Koshi, Madhes, Karnali and Sudurpashchim provinces to the national GDP have slightly decreased, while the contributions of the remaining provinces have increased marginally. The preliminary estimates by the NSO show that the contributions of Koshi, Lumbini, Madhes, Gandaki, Sudurpashchim and Karnali province to the national GDP is estimated to reach 15.8 percent, 14.3 percent, 13.1 percent, 9.1 percent, 7.1 percent and 4.3 percent, respectively, in the current fiscal year. 

The GDP size of Bagmati, Koshi and Lumbini is estimated to reach Rs 2.07trn, Rs 903bn and Rs 814bn. Similarly, the GDP size of Madhes, Gandaki, Sudurpashchim and Karnali provinces is estimated to reach Rs 748bn, Rs 517bn, Rs 404bn and Rs 244bn, respectively, in the current fiscal year

How are the provinces faring?

The GDP of Koshi Province is estimated at Rs 903bn, contributing around 15.84 percent to the national GDP. Its economic growth rate is projected at 3.51 percent, higher than the previous year's 2.13 percent. The agriculture sector is expected to be the highest contributor (32.80 percent) in the provincial GDP, while administrative services will have the lowest contribution (0.32 percent). The accommodation and food service sector is likely to experience the highest growth (22.32 percent), contrasted by a decline in the manufacturing sector (-2.67 percent).

Likewise, the GDP of Madhes Province is estimated to reach Rs 748bn in the current fiscal year accounting for 13.12 percent of the national GDP. Its growth rate is estimated at 3.78 percent, up from 1.50 percent the previous fiscal year. Agriculture is anticipated to be the highest contributor (35.19 percent), while mining and quarrying will contribute the least (0.15 percent). The accommodation and food service sector is poised for the highest growth (21.95 percent), while the construction sector is projected to witness the lowest growth (-2.19 percent).

Bagmati, contributing over a third of the national GDP at Rs 2,075bn, is expected to grow at 3.96 percent, up from the previous fiscal year’s 1.77 percent. The wholesale and retail trade sector is likely to be the highest contributor (21.53 percent), while the water supply and waste management sector will contribute the least (0.28 percent). The accommodation and food service sector is projected to have the highest growth (20.93 percent), while the construction sector is expected to  contract by 2.71 percent.

Similarly, Gandaki’s GDP is estimated at Rs 517bn which is 9.06 percent of the national GDP. Its growth rate is projected at 4.55 percent, higher than the previous year's 3.30 percent. The agriculture sector is expected to be the highest contributor (25.72 percent), while administrative services will have the lowest contribution (0.31 percent) in the provincial GDP. The accommodation and food service sector is likely to experience the highest growth (22.84 percent), while the lowest is from the construction sector which is estimated to  decline by 1.96 percent.

Lumbini’s GDP is estimated at Rs 814bn, with a projected growth rate of 4.05 percent, up from 1.99 percent the previous fiscal year. Agriculture is anticipated to be the highest contributor (29.63 percent), while administrative services will contribute the least (0.34 percent). The electricity sector is poised for the highest growth (28.93 percent), while the manufacturing sector is projected to contract by 1.43 percent.

Similarly, Karnali’s GDP is estimated at Rs 244bn, with a growth rate of 3.39 percent. This is higher than the previous fiscal year’s growth rate of 1.96 percent. The agriculture sector is expected to be the highest contributor (29.51 percent), while administrative services will have the lowest contribution (0.17 percent). The accommodation and food service sector is likely to experience the highest growth (22.52 percent), while the construction sector is expected to contract by 1.02 percent.

Sudurpashchim’s GDP size is worth Rs 404bn, with a projected growth rate of 3.41 percent, up from 1.52 percent in the previous fiscal year. Agriculture is anticipated to be the highest contributor (33.00 percent), while administrative services will contribute the least (0.13 percent). The accommodation and food service sector is poised for the highest growth (22.33 percent), while the manufacturing sector is projected to shrink by 1.82 percent.\

The International Federation of Journalists (IFJ), the world’s largest organization of journalists, said on Thursday that the arrest of Kailash Sirohiya, chairman of Kantipur Media Group, “is deeply concerning, especially considering the ongoing investigative work focused on allegations of misconduct by the home minister.”

It stated that “investigations against journalists and media personnel cannot be informed by personal or political reasons, and authorities must ensure that Nepal’s commitments to press freedom are upheld.”

The IFJ noted that “the chairman’s arrest comes following a series of reports detailing allegations that Lamichhane had misappropriated millions of Nepali rupees in savings at a cooperative fund while he was the managing director of the Gorkha Media Network.”

Police arrested Sirohiya from his office at the KMG headquarters in Thapathali, Kathmandu on Tuesday. The police subsequently took him to Dhanusha, where a complaint was filed against him. The Dhanusha District Court on Wednesday remanded him for three days in custody.

Meanwhile, the Nepal National Committee of the International Press Institute (IPI) has voiced concerns regarding Sirohiya’s arrest. 

Sirohiya was arrested based on an arrest warrant issued by the Dhanusha District Court in connection with the discrepancies seen in his citizenship document.

The Department of Hydrology and Meteorology has predicted the possibility of heavy rainfall in the South Asian region, including Nepal, this monsoon. According to the department, Kaski, Syangja, Lamjung and southern parts of Manang and Mustang are likely to receive heavy rains this year.

Heavy rainfall has also been forecast for the eastern and northern regions of Gulmi, and the western and northern regions of Gorkha. Furthermore, Saptari, major parts of Siraha, southern regions of Dhanusha, Sarlahi, and Mahottari, the western region of Sunsari, and the southern region of Udayapur are also expected to experience heavy monsoon rains.

However, it seems the government has not made adequate preparations to tackle potential monsoon hazards. As temperatures rise and air becomes warmer, we are witnessing more intense downpours, increasing the risks of floods and landslides. In recent years, Nepal has witnessed two major flood events—the Melamchi flood and the Kagbeni, Mustang flood—caused by heavy rainfall over a short period.

The government should make necessary preparations to address climate-related hazards. There is a designated agency, the National Disaster Risk Reduction Management Authority (NDRRMA) under the Ministry of Home Affairs, responsible for addressing natural disasters. However, it has yet to formulate concrete plans to mitigate risks even though monsoon is at our doorsteps. According to NDRRMA, floods have claimed 876 lives, with an additional 563 reported missing and 209 injured over the past 12 years. At the same time, landslides have resulted in 1,483 fatalities, with 347 people still missing and 1,224 others injured. The monetary damage caused by monsoon disasters over the past 12 years is estimated at
Rs 20bn.   

Despite such an alarming scenario, the government of Nepal seems least bothered about making adequate preparations for mitigating risks. There is a lack of coordination among the state's security agencies, such as the Nepali Army, Nepal Police and the Armed Police Force. Additionally, there is no proper mechanism for effective coordination among the federal, provincial and local governments. Without further ado, the government should prioritize preparations to safeguard people's lives and properties from monsoon hazards.

The Nepal-India border points in Kapilvastu are to remain closed for 60 hours from 6 am today in view of the Loksabha elections in Siddharthanagar of India on Saturday.

Deputy Chief District Officer Bhabishwor Ghimire said that the border points will be closed from 6 am today to 6 pm on Saturday keeping in mind the security sensitivity of the election.

The movement of vehicles and people will be completely curbed in Krishnanagar, Maryadpur, Chakarchauda and Shiwalawa of the district.

A meeting of the chief of Siddharthanagar district of India, Chief District Officer of Kapilvastu, chiefs of security agencies had decided to close the border points in order to prevent the activities affecting the election.

However, in case of emergencies, the border can be reopened through a mutual agreement during the official closure, Chief District Officer Ghimire said.

“The India side helps us by closing border points during the elections in Nepal also,” Ghimire said, adding, “We also closed the border crossings to help India hold the elections in a free and fair manner.”

The government has established the National Cyber Security Center under the Digital Nepal Framework 2076 BS.

The Center aims to facilitate the government to meet its aspiration for a digital Nepal. The Center based in the old building of the Home Ministry in Singha Durbar has already started its works, according to Ministry Under-Secretary and Cyber Security Chief Raj Kumar Maharjan.

It is mandated to investigate issues concerning cyber security, promote cyber security, increase public awareness on the matter, make cyber security preparations, identify relevant challenges, and prevent them among others. It, established under the Ministry of Communication and Information Technology, remains the Digital Forensic Research Center.

It may be noted that a meeting of the Council of Ministers on January 23 this year decided to establish the Center. It is handled by 12 employees and the government decided to have the Center citing increasing cyber insecurity of late in the country.