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Kathmandu: Prime Minister Pushpa Kamal Dahal’s political advisor and a close confidante during the decade-long insurgency and after, Haribol Gaurel, has resigned in the wake of “some serious differences” with the head of the government. Gajurel said he put in papers a week ago after the PM turned down his suggestions on politics and governance. 

The Cabinet is yet to endorse his resignation, though. 

Multiple sources informed that Gajurel resigned after PM Dahal did not heed his suggestions on issues related to governance and politics. A source said Gajurel resigned as holding on to the job was likely to give rise to more disputes with PM Dahal.

Prime Minister Pushpa Kamal Dahal has claimed that nearly 200 Nepalis, who had gone to Russia on student and tourist visas, have joined the Russian army to earn money.

Addressing the office-bearers meeting of the Press Center in the Capital on Monday, the Prime Minister said that he got the information that 200 Nepalis have joined the Russian army.

He further said that some Nepalis serving in the Russian army are under the control of Kyiv’s forces.

Prime Minister Dahal went on to say that he has even got the information that some Nepalis have also joined the Ukrainian army and the government is studying about the same.

Six Nepalis serving in the Russian army had died during the Russian-Ukraine war.

The government has already sent a letter to the Russian government to hand over the bodies to the Nepal government.

The government has also urged the Russian government not to recruit its citizens into the Russian army.

Meanwhile, police have arrested 12 persons for their alleged involvement in sending people to Russia illegally.

Prime Minister and CPN (Maoist Center) Chairman Pushpa Kamal Dahal has said that conspiracies were being hatched to mislead the people by spreading disinformation in various ways.

Addressing the third plenary meeting of office-bearers of Press Center Nepal today, he said the media has a key responsibility to stop the propaganda and provide true information to the people.

The PM alleged that elements that do not like the federal democratic republic have been spreading fake, unfounded and misleading propaganda against the government and its leadership in recent times, urging the media to counter this by giving true and factual information.

Stating that the Prime Minister has been carrying out works in favor of the nation, people, constitution and democracy with determination, PM Dahal said the powers that are growing nervous from the pro-people works initiated by the government were unnecessarily spreading misinformation.

Prime Minister Dahal said that he came to know about the sale of shares of Ncell, the private sector telecommunication service provider, in course of the UN Climate Summit, COP 28, organized in the United Arab Emirates (UAE), and had immediately directed the bodies concerned to carry out an investigation in that connection.

"I heard of the transaction of Ncell's shares when I was in the UAE. I cautiously conducted a probe into this. On the next day after I returned back to the country, I instructed the officials, including the Chief Secretary, to carry out a study on what impact it (the sale of Ncell's shares) will have on Nepal's tax system, on foreign investment and on the provision of the Government of Nepal taking ownership of the company after some years," he said.

He said that he also held discussions within the ruling coalition on this topic considering the sensitivity and seriousness of the transaction of Ncell's shares which seemed unusual. "I put forth a proposal during the discussions that there is fault in the buy-and-sell of the shares and it should be investigated, the truth found out and we should move ahead with determination for the interest of the nation, people and the country's economy," he added.

According to him, all parties in the ruling coalition agreed in the discussion that the government should investigate the sale of shares.

On a different note, PM Dahal asserted that the present ruling coalition will last for its full term and also reiterated his commitment to move forward with a new strategy for the upcoming year, making an assessment of the current one year.

Maoist Center Vice-Chairman and spokesperson Agni Prasad Sapkota, Press Center leader Maheshwor Dahal, PM's press advisor Govinda Acharya, among other leaders, attended the meeting.

The first quarter review of Monetary Policy 2023/24 aims at facilitating banks and financial institutions, which have lending capacity of around Rs 300bn, in credit expansion.

The Nepal Rastra Bank (NRB) has taken a host of measures ranging from reducing rates to easing real estate and margin loans in the monetary policy review. “The central bank has adopted a flexible policy on interest rate corridor as banks have not been able to expand credit as expected,” Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said. But those measures have not been proved effective. 

The private sector has been saying that tight monetary policy adopted by the central bank even while the external sector was improving was impeding economic activities in the country. To address the grievances of the private sector, the central bank has lowered the interest rate from 7.5 percent to seven percent. Policy rate too has been reduced to 5.5 percent from 6.5 percent, while deposit collection rate has been reduced to three percent from 4.5 percent.

The first quarter review has also made arrangements to reschedule and restructure loans of good borrowers, who have been unable to pay their loans. The central bank has also instructed banks to provide concessional housing loans to earthquake victims.

Industrialists have welcomed new provisions taken by the monetary policy. Former banker and banking expert Parshuram Kunwar Chhetri, however, called for honest implementation of the monetary policy provisions. “The central bank has reduced policy interest rates to 6.5 percent from seven percent in the monetary policy for the current fiscal year. But the banks increased the rates instead of lowering them,” he added. “In mid-July, the interest rate on individual fixed deposits was 9.98 percent, but banks raised it to 10.26 percent in September.”

Nepal Bankers Association Vice-president Santosh Koirala is of the view that  reduction in policy rates have put pressure on commercial banks to reduce rates. “The provision will provide relief for borrowers. Interest rates will likely come down when banks revise their interest for the month of Magh,” Koirala, who is also the CEO of Machhapuchchhre Bank Ltd, said. “The easing of realty and margin loans will also increase demand for loans.”

The central bank has reduced weighted risk of realty loans and margin loans from 150 percent to 125 percent. This will increase the capacity of banks and financial institutions to extend credit of Rs 40-50bn toward the sector. The decision to raise the monthly installment income ratio for housing loans to 60 percent from 50 percent will enable even low income users to access housing loans.

Banks and financial institutions will be allowed to give residential house loans of up to Rs 2.5m for the reconstruction of houses damaged by the November earthquakes. Banks aren’t allowed to charge a premium of more than two percentage points on the base rate for such loans. Likewise, only people designated as ‘earthquake-affected’ by the authorities concerned can avail such loans.

Banks are also allowed to spend a maximum of 40 percent from the amount deposited in their corporate social responsibility funds from the profit generated in 2022/23 and 2023/24 for reconstruction of public buildings like schools, hospitals and health posts damaged by the earthquake. The central bank has also said it would review the limit on domestic remittances and non-deliverable forward transactions.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal said that the first quarter review has addressed institutional demands placed by them. “The direction taken by the first quarter review is positive. We are now waiting for implementation of the new provisions,” Dhakal added.

Rajendra Malla, president of Nepal Chamber of Commerce, said reduction in policy rate will help to bring interest rates down. “The weighted risk on realty and margin loans should have come down to 100 percent,” he said. 

Rajesh Kumar Agrawal, president of Confederation of Nepalese Industries, said the onus is now on banks and financial institutions to reduce rates. “Earlier, banks had increased rates even when the central bank had lowered them,” he said. He added that the policy provisions in the first quarter review will provide relief to the private sector.

The Supreme Court bench on Monday directed the Election Commission to conduct elections of Jammu and Kashmir Assembly by September 30, 2024, Outlook reported.

The five-judge Supreme Court bench delivered the verdict on petitions challenging the abrogation of Article 370 from Jammu and Kashmir.

Chief Justice DY Chandrachud during the verdict said that they have directed that restoration of statehood in the Union Territory of J&K be done at the earliest.

CJI reportedly said, "We direct that steps shall be taken by the Election Commission of India to conduct elections to the Legislative Assembly of Jammu and Kashmir constituted under Section 14 of the Reorganisation Act by 30 September 2024; restoration of statehood shall take place at the earliest and as soon as possible."

House of Representatives Secretary Padma Prasad Pandey has been recommended for the post of General Secretary of the Parliament Secretariat.

Pandey has been recommended as the General Secretary after Bharat Gautam tendered his resignation on Sunday.

Speaker Devraj Ghimire and National Assembly Chairman Ganesh Prasad Timilsina recommended him as the General Secretary of the Parliament Secretariat.

Parliament Secretariat General Secretary Dr Bharat Gautam tendered his resignation.

With just eight months of his term remaining, he submitted his resignation to President Ram Chandra Paudel, the Federal Parliament Secretariat said.

The price of gold has dropped by Rs 500 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 117, 000 per tola today. It was traded at Rs 117, 500 per tola on Sunday.

Meanwhile, tejabi gold is being traded at Rs 116, 450 per tola. It was traded at Rs 116, 950 per tola.

Similarly, the silver is being traded at Rs 1,410 per tola today.