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The price of gold has dropped by Rs 300 per tola in the domestic market on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 116, 000 per tola today. It was traded at Rs 116, 300 per tola on Tuesday.

Meanwhile, tejabi gold is being traded at Rs 115, 450 per tola. It was traded at Rs 115, 750 per tola.

Similarly, the silver is being traded at Rs 1,400 per tola today.

Pokhara, often referred to as the ‘Garden City of Lakes’ in Nepal, boasts a picturesque landscape adorned with nine lakes. Each of these lakes, including the renowned Fewa, holds significant ecological value, contributing to a well-balanced and diverse ecosystem within the valley. The Lake Cluster of Pokhara Valley, which includes all nine lakes, have been designated as a Ramsar site, recognizing their global importance as wetland areas.

As a world-renowned wetland, the lakes in Pokhara host a rich array of aquatic plants and animals. Among these, fish play a pivotal role as indicators of the overall ecosystem health. However, recent trends indicate a diminishing importance of these lakes in sustaining connections with indigenous plants and insects. The decline in the number of local fish species within these lakes has been alarming. Notably, vital plants like Lotus are experiencing a sharp decline, contributing to the proliferation of polluted vegetation such as water hyacinth, which covers the lake's surface.

Compounding these ecological concerns is the shift in the economic activities of local communities. In the past, residents were engaged in the trade of indigenous and medicinally valued fishes like Baam, Bhittye, Fageta, and Shahar. However, this traditional practice is undergoing a transformation, with hybrid fish varieties like Nile Tilapia and Mahur replacing the high-value indigenous species.

“The significance of the fish in these lakes today has been reduced to merely a business,” said Birendra Dhakal, a local resident of Rupa Lake, expressing his concerns over the noticeable invasion of unnecessary plants and hybrid fishes in the lake.

Dhakal’s sentiments echo those of many residents around the lakes of Pokhara, all deeply troubled by the threat to the indigenous species of fish and medicinal plants and various other aquatic life in the lake’s watershed area. Rajan Jalari, a seasoned fisherman from Fewa Lake, highlighted the surprising surge in the number of hybrid fishes in the lake over recent years. Raja, who belongs to the Jalari community engaged in fisheries for generations, said he too has no option but to sell hybrid varieties like Nile Tilapia which don’t fetch good prices. “To break free from relying on selling hybrid varieties, I am contemplating setting up my own fish cage in the lake. This way, I hope to nurture local fish varieties,” he shared.

According to local fishermen, nearly all the lakes in Pokhara and surrounding areas have seen proliferation of hybrid varieties, particularly Nile Tilapia. The presence of Tilapia has had a detrimental impact on the native fish species, creating competition for both food and habitat. The prolific breeding capacity of Nile Tilapia has affected indigenous varieties in lakes in Pokhara.

Jhalak Jalari, who leads the Begnas Fisheries Association, said Nile Tilapia now constitutes nearly half of the total fish population in the lakes. “This number might increase further in the days to come,” Jhalak added.

The concern over the decline in local fish populations is not only shared by the locals but is also substantiated by the Fisheries Research Station,Pokhara. According to the station, it has been hatching a high number of fish fries belonging to local species such as Rahu, Sahar and Naini, etc, and releasing them into the lakes every year. “However, the population of these local fish varieties is not growing as expected,” said Dr Akbal Husen, the Fishery Scientist and Chief of the Fishery Research Station, Pokhara.

Dr Husen attributed slow growth of local fish population to the lack of plankton in the water which serves as both food and a crucial habitat for the hatch of local fishes. “The presence of a large number of exotic fish, particularly Nile Tilapia, exacerbates the issue. As a hybrid fish, Nile Tilapia poses a threat by preying on small fishes, including fries, and competes for food with other fish species,” he said.

He said enhancing plankton levels in the water by maintaining a pollution-free environment and avoiding pesticide use in the watershed area is one of the solutions to mitigate this problem.

The price of gold has dropped by Rs 700 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 116, 300 per tola today. It was traded at Rs 117, 000 per tola on Monday.

Meanwhile, tejabi gold is being traded at Rs 115, 750 per tola. It was traded at Rs 116, 450 per tola.

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

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.