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The country has raised Rs 30 billion internal and Rs 26.46 billion external loans till January 14, 2023, it is stated in the half-yearly review of the budget of current fiscal year 2022/23 released on Sunday. Similarly, the government has received foreign grants worth Rs 8.12 billion during the same period. Government mobilizes internal and external loans and foreign grants for the implementation of annual policies and programs. According to the Ministry of Finance, discussions are being held with different development partners for the mobilization of development assistance for the current fiscal year and coming fiscal year. The half-yearly review report stated that initiatives are underway for loan and grants with more than two dozens of development partners. The government has been taking initiative to take Rs 39 billion concessional loan from the Asian Development Bank for the implementation of Kakadbhitta-Laukahi road section. Discussion with the World Bank to get this loan is underway, according to the Finance Ministry. Similarly, the government is preparing to take Rs 13 billion subsidized loan for the School Sector Reform Program as well as Rs 13 billion subsidized loan for Quality Health System Project from the World Bank. It is said that the project document has already been prepared to get this loan assistance. The Finance Ministry mentioned in the review report that a subsidized loan for budgetary assistance of around Rs 13 billion is going to be taken from the World Bank under Nepal Fiscal Reforms DPC-2 Program as well as preparation is underway to take budgetary assistance worth around Rs 13 billion under 'Finance for Growth' program. The Asian Development Bank has already given initial consent for the implementation of the 635-MW Dudh Koshi Storage Hydroelectric Project. "The Asian Development Bank has given hints to provide around Rs 75.40 billion subsidized loan for the implementation of the project. Coordination is underway to collect investment from other donor agencies in the project," mentioned the review report. Similarly, homework is on to secure a subsidized loan worth US Dollars 500 million (around Rs 65 billion) to implement the 1061-megawatt Upper Arun Reservoir-based Hydropower Project. In addition to this, the government is coordinating with other probable investors for the project to manage remaining funds required to undertake the project. For the implementation of the Customs Reform and Modernization Strategies and Action Plan, the government is in the process of receiving a loan of around Rs 6.50 billion in subsidy from the Asian Development Bank. Moreover, the government is making preparations to get a soft loan of worth Rs 13 billion from the ADB to implement a public finance management and service delivery reform program. Discussions are underway in regard with a draft of the Memorandum of Understanding to secure around Rs 14.40 billion grants from the British Government to undertake the Local Infrastructure Support Programme. Besides this, Nepal is to take a loan of worth Rs 1.19 billion from the ADB for the implementation of the Rural Roads Improvement Programme. The government is in touch with some of its development partners and donor agencies to receive foreign assistance. It reached the phase of collecting submissions from the Ministry of Law, Justice and Parliamentary Affairs in regard to obtaining 40 million Euros from the European Union for the implementation of the School Sector Reform Project and projects in other areas. The EU has been urged to provide Rs 15.06 million grants to Nepal for the support of the agricultural and rural development endeavors.

The Nepal Stock Exchange (NEPSE) plunged by 16. 40 points to close at 2,105.46 points on Tuesday. Similarly, the sensitive index dropped by 2. 74 points to close at 401. 69 points. A total of 4,685,809 unit shares of 255 companies were traded for Rs 1. 78 billion. Meanwhile, Unilever Nepal Limited was the top gainer today with its price surging by 6. 12 percent. Likewise, Barahi Hydropower Public Limited was the top loser with its price dropped by 5. 07 percent. At the end of the day, the total market capitalization stood at Rs 3. 03 trillion.

The State-owned Hetauda Cement Factory has stopped producing cement in lack of coal. According to the management, tender has already been announced for the supply of coal. The Industry has set a plan to import 10,000 metric tons of coal in the first and second phase. Deputy General Manager of the Industry Nabin Karna claimed that the management has been making arrangements to import necessary coal and they would start producing cement within a week. The coal would be brought from India, Indonesia, Bhutan and Pakistan. The Industry, which remained closed for a long time, was again brought into operation three months ago. Although it has a capacity to produce 750 tons of cement in a day, it has not been able to produce the cement as per its capacity due to machinery problems and lack of human resources. The Industry is in loss for the past four years. It was established with the support of the Asian Development Bank in 2033 BS.

National Pride Projects have been accorded high priority, have strategic importance for the country and the government has always guaranteed resources for the development of the projects. Yet the progress of national pride projects is far from satisfactory. This fiscal year is also no different. The latest report of the Ministry of Finance (MoF) shows only 15.16 percent of the budget allocated for these projects in the federal budget has been spent so far. Rs 98.97 billion was allocated for national pride projects, but only Rs 15.8 billion was spent in the first six months of the current fiscal year. Among the 21 national pride projects, Sunkoshi Marine Diversion Project has an edge over others when it comes to budget utilization. The project has spent 88 percent of the allocated amount in the first half of this fiscal. Of the total allocation of Rs 2.71 billion, the project has used Rs 2.39 billion till mid-January. Similarly, the power transmission project of the Millennium Challenge Account (MCA) Nepal has the least progress. Only 3.66 percent of physical progress has been made till mid-January in this project. MCA Nepal has undertaken works related to the acquisition of land, design, study, and survey of the project for the current fiscal year. The MoF, in the mid-term review of the budget, has said 18 percent of the allocated budget has been spent on Pushpalal Highway, 42.60 percent on Postal Highway, 39 percent on Kosi Corridor, and 22.71 percent on Kali Gandaki Corridor in the first half of this fiscal year. The budget spending in Karnali Corridor is 9 percent, while Metro Rail and Monorail Development Project has utilized 22 percent. The much talked about Kathmandu-Terai Expressway is yet to expedite its works as only 9.11 percent has been spent in this fiscal. Meanwhile, Budhi Gandaki Reservoir Project has spent only 15.86 percent of the allocated budget. The MoF report shows none of the four irrigation projects, namely Babai, Mahakali, Sikta, and Ranijamara, have budget utilization above 50 percent in the first half of this fiscal. These 21 projects were given the status of 'national pride' with a belief that their construction will help the economic and social transformation of the country. As of now, the government has identified four irrigation projects, three hydropower projects, three international airports, six road projects, an electric railway project, a drinking water project, two projects aimed at promoting the holy sites of Pashupati and Lumbini, and an environmental conservation project as national pride project. But the start of the construction of many of these projects is yet to see the light of day. The construction of the Upper Tamakoshi Hydropower Project and Gautam Budh International Airport was completed in the last fiscal year while that of Pokhara Regional International Airport was completed in the current fiscal year. According to MoF, the project implementation has not been effective due to the absence of separate legal provisions and standards regarding project selection and implementation. No clear standards have been prepared to maintain operational coordination with the provincial and local levels in terms of implementing projects of national pride. The concept of the ‘national pride project’ was first introduced in 2012. Yet, the government still has not framed any clear-cut criteria for the selection of national pride projects. As a result, the label of ‘national pride’ is put on projects through Cabinet decisions, which many say, is an ad-hoc process. MoF officials say the execution of national pride projects have been suffered due to delays in land acquisition, disputes between project officials and locals over compensation proposed by the government for land that needs to be acquired, unclear relocation and resettlement strategies, and lack of coordination among authorities concerned. Economists and development experts say a clear legal arrangement should be created and a separate law should be formulated to bring effectiveness in the selection and implementation of national pride and large projects of strategic importance. MoF is said to be working to create criteria for national pride projects. Under this, a project will be announced as the 'project of national pride' only after the finalization of the detailed project report, geological study, and regional balance analysis.