Submit your Article

A total of 79,100 foreign tourists arrived in Nepal in January, the first month of 2024.

The number was up by 24,026 as compared to the month of January, 2023. A total of 55,074 foreign tourists visited Nepal in January, 2023.

According to the Nepal Tourism Board, 81,897 people went out of the country in January. The highest number of Indian tourists (24,139) visited Nepal in January against 16,436 in January, 2023.

Similarly, 7,267 tourists from China, 7,047 from America, 4,619 from Thailand, 3,812 from South Korea, 3,629 from Bangladesh and 3421 from Australia entered Nepal in January.

Likewise, 3,276 from the UK, 2,229 from Bhutan and 1,568 from Japan visited Nepal in the month.

The government has formed a committee to study operating international airports of the country in a public private partnership (PPP) model. 

A Cabinet meeting held today approved the proposal on forming a study committee, submitted by the Ministry of Culture, Tourism and Civil Aviation.

Former Secretary Shankar Prasad Adhikari is the coordinator of the five-member committee where investment expert Ghanshyam Ojha, Chief of Aviation Division of the Ministry, Buddhi Sagar Lamichhane, Joint-Secretary of the Investment Board of Nepal and Deputy-Director of Civil Aviation Authority of Nepal, Dipendra Shrestha, are the member-Secretaries.

The committee was formed to study the issue of operating Kathmandu-based Tribhuvan International Airport, Bhairahawa-based Gautam Buddha International Airport and Pokhara-based Pokhara International Airport in full capacity and the PPP model.

According to the Ministry, a five-member committee has also been formed to manage contract-based employees of Nepal Airlines Corporation.

The committee has been formed under coordination of former Vice-Chairperson of the National Planning Commission, Dipendra Bahadur Chhetri, where management expert Tikaram Rai, Director General of the Tourism Department, representatives of the Finance Ministry and Finance Department of Nepal Airlines Corporation would be the members. This committee has been given a 45-day deadline.

With this, the Cabinet decided that the Nepal Army should immediately provide land for the expansion of Chitwan-based Bharatpur airport and Civil Aviation Authority of Nepal to construct the damaged infrastructures.

Similarly, the government took the decision to provide land to Nepal Army at Shaktikhor for horse breeding centers and to bear all possible expenses for the same.

Investors seem to be focused on share price fluctuations rather than financial indicators while buying and selling securities on the secondary market.

A company’s share price is determined by supply and demand. However, investors sometimes buy low-yielding companies at high prices and high-yielding companies at low prices. Stock analysts say buyers today are putting money into stocks whose prices are growing faster without looking into fundamental and technical indicators. But it is important to make long-term investments only after analyzing the fundamentals, they say.

Share investor Navaraj Dahal says investors today are putting their money in stocks based on how much profit they can book in certain days without looking at financial indicators like EPS, NPL, and PE. According to him, stocks with negative net worth are experiencing positive circuits, while those with market values lower than net worth are seeing prices go down. “For example, the net worth of some commercial banks is higher than their market prices. But their share prices are coming down. It seems that investors are not looking at the fundamentals,” Dahal said. “The Nepal Rastra Bank (NRB) should remove the cap on margin lending for institutional investors for the demand for stocks of commercial banks to pick up.”

Even long-term investors are not putting their money in commercial banks because of their shrinking dividend distribution capacity, Dahal said.

Commercial banks, which used to distribute 30-32 percent dividends in the past, are now offering just 12-15 percent. Many aren’t in a position to distribute dividends at all.

Financial indicators such as earnings per share (EPS), share price, and price to earning (PE) ratio help investors to take long-term investments. These indicators can be found in the financial statements of listed companies. The most reliable indicator to analyze share prices and returns is the PE ratio.

The PE ratio is obtained by dividing the market value of shares by its earnings per share (EPS). The PE ratio shows how many rupees investors need to invest in the secondary market to earn a rupee per share of that bank. The lower the PE, the better the return is.

According to the financial statement for the second quarter of the current fiscal year, Kumari Bank’s EPS is the lowest at Rs 6.61. The bank’s shares are trading at a little above Rs 150 per unit on the bourse. Among the banks traded on the secondary market, Standard Chartered has the highest EPS of Rs 36.62. Everest is second with EPS of Rs 29.12, followed by NIC Asia with EPS of 25.59, Nabil with Rs 23.74, and Prime with Rs 22.50, respectively. EPS of other commercial banks are lower than Rs 20.

EPS is regarded as the reliable tool to measure the business and financial health of a company over a period. It is calculated by dividing the net profit earned over a certain period by the number of shareholders.

Share prices and PE ratio of commercial banks

Standard Chartered Bank has the highest share price among commercial banks in the country at Rs 540 per unit while Kumari Bank Ltd has the lowest. Likewise, Prime Commercial Bank has the lowest PE ratio of 9.28, while Nepal Bank Ltd has the highest PE ratio of 29.14.

Investors are advised to buy stocks with a PE ratio of less than 10 percent without any hesitation in the international market. But it doesn’t work in Nepal. Many commercial banks that are offering attractive dividends have a PE ratio of 15 percent.

“We don’t see investors making investment decisions looking at indications like EPS and PE of commercial banks. Selecting stocks with high EPS and low PE will safeguard investment in the future,” Dahal said. “But the market is dominated by traders at the moment who are looking for short-term profits.” According to Dahal, share prices of commercial banks rise if they are held for a long time. “But since the size of capital of commercial banks is big, no one can hold shares for a long time,” he added.

The Nepal Stock Exchange (NEPSE) plunged by -30. 92 points to close at 2,067.01 points on Thursday.

Similarly, the sensitive index dropped by -4. 69 points to close at 373. 93 points.

A total of 11,514,571-unit shares of 309 companies were traded for Rs 4. 18 billion.

Meanwhile, Samaj Laghubittya Bittiya Sanstha Limited

Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ) was the top gainer today with their price surging by 6. 10 percent. Likewise, Samling Power Company Limited (SPC) was the top loser as its price fell by -9. 42 percent.

At the end of the day, the total market capitalization stood at Rs 3. 24 trillion.

A team from the Central Investigation Bureau (CIB) of Nepal Police has arrested Arun Chaudhary, chairman and managing director of CG Holdings. He is accused of illegally appropriating the land belonging to Bansbari Leather and Shoe Factory. 

Arun, who is the brother of billionaire MP Binod Chaudhary, was apprehended from Lazimpat, Kathmandu, on Thursday.

According to the CIB, Arun will be investigated for his alleged involvement in the illegal transfer of 10 ropanis of land owned by Bansbari Leather and Shoe Factory and turning it into the property of CG Residency Pvt Ltd. 

The CIB also arrested Ajit Narayan Singh Thapa, the then-chairman of the Bansbari-based factory, and Sanjay Thakur, chairman of Chandbagh School, in connection with the case. 

The Bansbari Leather and Shoe Factory was established in the 1960s with the support of the Chinese government.

The disputed 10 ropanis of land were sold by the Bansbari Leather and Shoe Factory to Champion Footwear. Later in 1986, six acres of land were sold to Champion Footwear for Rs 250,000 per ropani, a far cheaper rate than the government valuation at the time. An additional four acres of land were given to get 2,500 shares of the industry.

At that time, along with Arun, Binod Chaudhary, Basant Chaudhary and others were the shareholders of Champion Footwear, which has long ceased to exist.

These days, the former shoe company operates as CG Chandbagh Residency Pvt Ltd, and Chaudhary Group Foundation has been running Chandbagh School here. Arun and his wife Sheela are its shareholders.

The land case was under investigation for the last three months. A three member team headed by Superintendent of Police Hobindra Bogati is leading the investigation. The team had gathered evidence from the Department of Land Management and Archive and talked to the locals before arresting the suspects.

Meanwhile, the Confederation of Nepalese Industries (CNI) has raised objections to Arun’s arrest. Organizing a press conference on Thursday, CNI representatives said that the police arrested Arun without any prior notice regarding the investigation. They said Arun, a high profile entrepreneur, was not going to leave the country for the police to apprehend him.

The government has appointed Umashankar Prasad Yadav from Rautahat as the National Planning Commission (NPC) member.

A meeting of the Council of Ministers held at Singha Durbar on Thursday decided to appoint Yadav as the member of the NPC.

Similarly, the meeting decided to form the National Trade Facilitation Committee with the participation of the private sector.  The Committee is headed by Minister for Industry, Commerce and Supplies, Ramesh Rijal, according to Minister for Communications and Information Technology, Rekha Sharma.

Likewise, Bikram Rai, the member of the Nepal Airlines Corporation (NAC) Board of Directors, has been appointed as the NAC vice-chair.

Lekhnath Lama from Sindhupalchowk and Dr Sahara Shrestha from Kathmandu have been appointed the members of the Naradevi Ayurveda Hospital Development Board.

The meeting also granted the permission to the government to present the Bill to revise the Secured Transaction Act, 2063 BS (2006) to the Federal Parliament.

Nasser Sulaiman Al Haider, Chairman of Al Sulaiman Holdings, Qatar, recently visited Kathmandu for the Annual Board Meeting of Zerone Technologies Pvt Ltd. The group holds diverse business interests across various geographies, including Jordan, India, Malaysia, UAE, Bahrain, Saudi Arabia, Italy, Singapore, and the USA. They have investments spanning a spectrum of sectors, such as Technology, Healthcare, Retail, and Services.

Zerone Technologies serves as a subsidiary of Al Sulaiman Holdings and spearheads the Group’s business endeavors in the SAARC countries, notably Nepal. Below are excerpts from the interview with Al Haider:

What IT and technology services does Zerone offer?

Zerone provides a comprehensive range of customized low-voltage solutions and services, offering an end-to-end suite tailored to individual requirements. Their offerings encompass various domains, including Fire Alarm and Public Announcement Systems, Security systems such as CCTV, Access Control, Gate Automation, and Perimeter Security. Additionally, they specialize in IT Networking solutions, covering IT cabling, Network switches, Wi-Fi, Routers, and Firewall Security. Zerone also addresses Data security needs, offering solutions for Data Centers, server rooms, and Audio Visual Systems like Video Conferencing, Video Walls, Video switching, Boardroom, and Meeting-room setups. Their expertise extends to Smart Automation solutions, IP Telephony communication solutions, Building Management System, Lighting automation systems, and Guest Room Management Solutions. Furthermore, Zerone caters to ICT Hardware requirements, providing Servers, Workstations, Desktops, Laptops, Printers, and other peripherals. This comprehensive suite of services accommodates a diverse spectrum of technological and infrastructure necessities.

In this era of rapid technological advancements, how challenging is it to provide services amid constant changes?

Staying abreast of the ever-evolving technology landscape is crucial, and we are committed to crafting and implementing forward-thinking platforms for our customers. We consistently invest in updating and training our engineers and designers in emerging technologies within our sector. This proactive approach safeguards our customers’ investments against obsolescence, ensuring their continued relevance and efficiency.

What services have you offered in collaboration with companies in Nepal?

As I mentioned earlier, we are offering the full suite of all the low-voltage products and services to our clients in Nepal. 

Name some of your completed and on-going projects in Nepal?

We have successfully concluded projects for renowned establishments such as Marriott Hotel, Aloft Hotel, Hyatt Place, Dusit Princess, and Holiday Inn Express. Currently, we are actively engaged in implementing our solutions at Hilton, Sheraton, Holiday Inn, Crowne Plaza, Mercure, Holiday Inn Pokhara, and Hyatt Place Butwal.

Additionally, it’s worth noting our extensive involvement in over 30 completed or ongoing Marriott Hotels across the SAARC region. These projects span various esteemed brands including St Regis, Ritz Carlton, JW Marriott, Marriott, Westin, Le Meridien, Four Points, Courtyard, and Fairfield.

With many businesses facing closure due to global economic recession, how do you navigate and operate effectively in such challenging times?

Our company is propelled by a robust vision that emphasizes embracing adversity as a pathway to successful growth and extending our gaze beyond local opportunities to sustain expansion. We prioritize the development and investment in a highly skilled workforce as a foundational pillar for achieving success. Guided by this philosophy, both during and following the covid recession, we have emerged as a significantly stronger company.

Managing an international business network involves navigating diverse rules and laws in each country. What challenges arise from working on a global scale?

As the world converges into a more compact workspace, we depend on top-tier global consultants to provide us with advice on cross-border geographies when necessary. However, it’s essential to acknowledge that understanding each country’s business intricacies requires firsthand on-ground experience.

With collaborations with numerous companies and brands, how do you mobilize your team to meet varied needs and demands?

Within our organization, we’ve cultivated specialists dedicated to each product category constituting our low voltage solutions. Working collaboratively with onsite field engineers, these specialists ensure project delivery aligned with precise customer specifications. It’s crucial to highlight that our solution designs are exclusively tailored to each customer—there’s no possibility of replication due to the unique and specific needs we cater to. Considering this, one can envision the extensive backend design efforts invested in delivering each project.

It appears you’ve received awards for your services. Could you share insights into a particular working style or approach that sets you apart and could inspire others?

We have been humbly awarded by various agencies, Partner OEMs, and Clients solely because of our Customer Centric approach, that sets us apart from our competitors.

What business challenges have you encountered during your work?

Covid-19 was one of the biggest challenges that we have faced in our lifetime and has left its impression on each one of us in some form or the other. Covid-19 also brought with it a numerous disruption such as complete halt of all non-medical business activities; production, supply chains and cross-border movement. 

Today, new challenges have emerged in the form of conflicts in the parts of the world which have many repercussions in the global economies.

Hence, the reality is that we will have to innovate and adapt our businesses quicker to the global realities that confront us and cushion the impact of such events in the future as well constantly.

Lastly, how was your visit to Nepal and we would like you to share some of our experiences?

I’ve eagerly anticipated visiting Nepal for quite some time now, drawn by the promising business opportunities and the undeniable beauty of your country. Experiencing the rapid pace of development here has been truly heartening.

During my visit, I had the privilege of meeting industry veterans and gaining firsthand insights into the investment landscape of Nepal. It was a pleasure meeting the dynamic Gaurav Agarwal, who introduced Marriott Brands like Fairfield, Marriott, and the upcoming Moxy to Kathmandu. I’m especially grateful to him for choosing Zerone Technologies as the implementation partner for our inaugural project in Nepal, and for guiding Jaspal Sehdave, who leads Zerone’s business in India and the SAARC region.

I also had the pleasure of meeting Maheshwor Shrestha, the MD of Chhaya Devi Complex and The Aloft Hotel. I was delighted to learn about his team’s commendable work in expanding hydro generation capacity in the Energy sector. Furthermore, meeting Vikram Singh, the General Manager of Aloft Hotel, was delightful, especially with the delicious kebabs and delicacies he treated us to.

An equally enriching encounter was with Dorjee Lama, the visionary behind the picturesque Dusit Princess in Kathmandu and several upcoming branded projects across Nepal. Engaging with Desh Bandu Basnet provided valuable insights into similar geographies and growth patterns across developing economies. His passion and vision for business, evidenced by his ongoing hospitality projects including a Mercure Hotel in Kathmandu and a Ramada Hotel in Itahari, were truly inspiring.

I was honored to meet Abhishek Goyal, General Manager Projects at CG Hotels & Resorts, and to learn about the group’s diverse range of branded hospitality projects in Nepal, such as the Crowne Plaza in Lalitpur and the Lemon Tree Hotels in Chitwan and Nagarkot.

Moreover, our discussions on the government’s investment priorities and policies with Rajesh Kazi Shrestha, Chairman of the International Chamber of Commerce Nepal, alongside Durk Man Maharjan, MD, and Punya Bhattarai, CEO of Microtech, provided valuable insights. Their partnership and support have been instrumental to Zerone’s endeavors in Nepal.

Additionally, meeting Rakesh Kaul, CEO of SAN Engineers and Consultants, offered valuable perspectives on overcoming constraints for project deliveries.

Finally, interacting with Senthil Kumar, Sr Regional Director Architecture, Design and Construction at Hilton International, and Manoj Sharma, the Project Head of the upcoming Hilton Project in Kathmandu, was enlightening. Learning about the progress of this prestigious project, which Zerone is also involved in, was truly gratifying.

The National Human Rights Commission (NHRC) recommended action against 66 individuals, including 37 Nepal Police personnel, in the fiscal year 2023/24.

Four superintendents of police (SPs), four deputy superintendents of police (DSPs), five inspectors, seven sub-inspectors, four assistant sub-inspectors, five head constables and three constables are among the police personnel that the national rights body has sought action for violation of human rights. 

The NHRC has also recommended action against one Armed Police Force (APF) personnel, four Nepali Army personnel, one National Investigation Department personnel and 12 civil servants, including seven chief district officers and four prison chiefs.

The rights body has also found 10 leaders and cadres of the erstwhile CPN (Maoist) guilty of human rights violation and recommended needful action. 

The NHRC published the list following investigation into 117 complaints, including those pending from the previous fiscal year. According to the half-yearly report of the watchdog, it took final decisions on 44 complaints and recommended concerned authorities for action and compensation on 37 cases. It also awarded a total compensation of Rs 1.47m to 21 victims and recommended action against 12 individuals.

The NHRC said that it conducted work sessions with high-ranking officials from relevant government ministries and civil society representatives during the period to discuss the implementation of recommendations. Likewise, separate discussions were held with the secretaries of the Ministry of Home Affairs and the Ministry of Finance to ensure effective execution of its recommendations.

The Aarti Sah murder case was one of the significant cases of human rights violation that was studied in the review period. Although the incident was initially labeled as suicide, the NHRC study found that the police investigation into the case was not inadequate. Police officers Bishwa Raj Khadka, Bed Prasad Gautam and Dinesh Adhikari were found guilty of reckless negligence while investigating the case.    

Since Aarti’s family members were also assaulted in police custody, the NHRC ordered the government to pay a compensation of Rs 150,000 to Aarti’s sister Manisha, Rs 100,000 to Aarti’s mother and Rs 50,000 each to Aarti’s brother and maternal uncle.

In another case related to reproductive health rights, the NHRC ordered the concerned authority to dismiss the official who denied maternal leave to differently-abled employee Sumitra Kautwal of the National Federation of the Disabled. The rights body also asked the federation to provide 90-day maternal leave to Katuwal and also pay her a compensation of Rs 100,000 for violating her right to reproductive health.

It also decided to write to the Ministry of Home Affairs, the Ministry of Women, Children and Senior Citizens, chief ministers of all seven provinces and chief district officers of all 77 districts to monitor the implementation of laws related to reproductive health in government and non-governmental offices.

Likewise, the NHRC has recommended the government to pay a compensation of Rs 10,000 to Dr Ranjit Kumar Yadav who was arrested by Central Investigation Bureau (CIB) of Nepal Police on a false charge of possessing fake license of the Nepal Medical Council. It also drew the attention of the Nepal Police and the Council to prevent similar incidents in the future.

It also recommended to the Office of the Prime Minister and Council of Ministers, the Ministry of Finance, and the Nepal Rastra Bank to implement policies for sanitation of banknotes and currency before they are circulated in the market.

The NHRC also asked the Nepal Police to compensate 10 sexual minority individuals who were subjected to inhumane treatment by police personnel. It also asked the Nepal Police to communicate with all its units to respect the honor and dignity of sexual minorities.