Submit your Article

Since the provincial assembly elections on December 26, 2022, Koshi has witnessed a series of changes in leadership. Hikmat Karki from the CPN-UML and Uddhav Thapa from the Nepali Congress both took turns as chief minister within a short period. However, their administrations fell as they failed to win a vote of confidence.

Presently, Kedar Karki, aligned with Nepali Congress’ anti-establishment faction, has been sworn in as the chief minister of Koshi province, succeeding Parshuram Khapung, the province chief, in compliance with Article 168 of the Constitution. He secured his position on Saturday with the backing of 47 members of the Province Assembly. Karki, known for his proximity to NC leader Shekhar Koirala, managed to clinch the chief ministership with the support of 39 PA members from CPN-UML and eight PA members from the NC, despite opposition from the coalition government at the Center against a new coalition in Koshi.

Currently, Koshi has sidestepped the need for midterm elections. However, the political turmoil unfolding in Koshi since the Nov 2022 polls is a glaring example of the avarice within the Nepali political fraternity. It unequivocally reflects how the country’s precarious state in every aspect can be attributed to the actions of politicians. These political leaders demonstrate an inability to govern the country in an organized manner and adhere to the constitutional framework. Because of these politicians, the constitution has become nothing but an ordinary paper.

In the past, Nepal maintained a cohesive foreign policy that garnered respect. However, this approach was disregarded by politicians, and they have struggled to formulate a coherent replacement. Our political leaders express divergent views on the national foreign policy. Even the same politicians present varying stances in different gatherings and platforms. For instance, when visiting the US, they endorse the Indo-Pacific Strategy (IPS) and the Millennium Challenge Corporation (MCC). Conversely, during visits to China, they show appreciation for the Belt and Road Initiative (BRI). Their positions are contradictory.

Nepal has sufficient natural, human, financial and infrastructural resources that can be utilized or managed effectively to enhance the country’s economic, social and overall development. These resources include minerals, water resources, agricultural land, skilled workforce, tourism potential and more. With proper planning, utilization and management of these resources, Nepal can achieve growth, improve living standards and enhance its overall prosperity. But a failed leadership has kept the country in a mess.

Despite operating within a multi-party system, Nepal is increasingly trending toward an autocratic and a single-party rule due to the prevalent practice of forming coalitions. Consequently, this trend has diminished parliamentary competitiveness. The present ruling coalition perceives itself as beyond the bounds of the Constitution and has engaged in numerous actions that surpass the confines of the legal framework.

Even neighboring countries have not extended us significant help in maintaining peace, prosperity and fostering development. It's evident that they prioritize actions that align with their own interests, and it is our responsibility to ensure our own well-being. 

At present, the Nepali Congress holds a pivotal position in the Parliament. It should ideally lead the country, but the current leadership of the party appears to lack a clear direction. They have struggled to maintain the traditional essence and values of the party. Given the state of Nepali political parties, our parliamentary system is at the risk of faltering.

There is an urgent need for a strong leadership within the Nepali Congress. As the largest democratic party in Nepal, it’s vital for the party to function effectively and set a proper course. This would not only benefit the party but also contribute positively to the national political landscape.

What if political parties, especially the Congress, fail to deliver? Such failure could lead the country toward another wave of political change, something we have been witnessing over the decades. 

The author is a member of the Supreme Court Bar and has been practicing corporate law for around three decades

As Israel has gradually resumed control and cleared the border areas flooded with terrorists, the extent of the Hamas massacre has been revealed:  

As of today, we have counted more than 1,400 people murdered, among them babies, children, women and elderly people. This number includes 10 Nepalis enrolled in the "Learn and Earn Program" and more than 50 nationals from other countries. Entire families were butchered in their homes. Infants were mutilated and children gunned to death with their parents. Approximately 260 young men and women were slaughtered, most of them shot to death, at a music festival. More than 3,800 people were injured, many of them still hanging between life and death. The fate of 200 abducted people remains unknown. In addition, Hamas terrorists launched more than 6000 rockets against its civilian population.

The Hamas attack in the south was a premeditated mass murder of innocent civilians. The launching of rockets against Israel's population is a further attempt to terrorize and kill innocent citizens.     

It is time to dispel myths and come to reality:

The first myth is the unholy equation made by many mainstream media outlets, in a futile attempt to preserve a non-existent balance, to deceptively describe the conflict as "violence on both sides."

However, while Israel seeks peace and coexistence, the Palestinian terrorist organizations, including Hamas, choose death and devastation. While throughout the conflict Israel has made great efforts to minimize harm to civilians, the militant Palestinians aim at innocent civilians as their primary objective. Hamas commits a double war crime–targeting Israeli civilians while using the residents of the Gaza Strip as human shields. 

There can be no comparison. There is no equivalence between those attacking innocent civilians and those defending themselves against such attacks.

While Israeli rockets are used to protect civilians, Palestinian civilians are used to protect their rockets.

The second myth is one, repeated by many, that the use of force is ineffective or inherently immoral. This is false. There are times when the use of force is a necessity, an obligation and the only moral course of action. Facing the depth of evil of terrorists like those in Hamas, who set out to murder babies and slaughter innocent people in their beds, it is the obligation of every state or entity to stop them from accomplishing their goals and to prevent such atrocities by any available means. 

It is unacceptable that the right to use force in self-defense is questioned in relation to Israel. Like every other state in the world, Israel has the right and the obligation to protect its citizens and to take all necessary measures to defend its people. 

It is abhorrent that there are those who question that right. When media personalities and others question Israel's right to self-defense, the people of Israel ask: How many Israelis must be killed in order for that right to be recognized, as it is for any other nation on this planet? 

The third myth to be highlighted is one that touches on the essence of the conflict between Israel and the extremist Palestinians. The falsehood that needs to be dispelled is that the conflict is only about tangible elements, like territory, water or other material assets. One of the most clichéd statements is that 'if Israel would only do this or that then there will be peace.' The attack on southern Israel demonstrates the fact that Hamas, like other extremists in the Palestinian camp, have no interest in compromise or coexistence. They wish to eradicate Israel and refuse to recognize it in any shape or form. 

This is an existential battle, in which Israel's survival is at stake. Israel has gone a long way in trying to achieve peaceful coexistence. It recognized the Palestinian Authority and relinquished territory to the Palestinians. Israel vacated the entire Gaza Strip, including the dismantling of all Jewish settlements in that territory. However, Israel was not rewarded with peace. Instead, the territories it vacated were then turned into terrorist training camps and launching pads for attacks. There is a growing realization that peace will only come when the majority of Palestinians choose coexistence over conflict and eject the extremists from their midst.      

There are many who ask how they can help Israel at this time of need. It warms the hearts of the people of Israel to witness such offers of support and they are deeply appreciated. 

Beyond the emotional and material support provided by many, no less important is moral support. Public statements by elected officials, solidarity communal gatherings in synagogues and churches, and the illumination of public buildings in blue and white (the colors of our flag) are all fine examples of reassuring actions. 

In today’s world of social media, everyone has a voice and anyone can be an ambassador of goodwill. If you wish to support Israel, spread the word of truth and help us dispel the myths.

Israel highly values the support extended to Israel by Nepali Government and so many citizens. Condemning the attack by the Hamas terrorists and standing with Israel in this difficult time is essential and reminds us of the historic decision taken by BP Koirala to establish diplomatic relations between Nepal and Israel in 1960.

The author is the ambassador of Israel to Nepal

Nepal’s economy is grappling with the bitter reality of a recession, even if it hasn’t been officially acknowledged by the government. Despite rosy forecasts from global financial heavyweights like the World Bank, International Monetary Fund and Asian Development Bank, the nation’s economy is reeling under a multitude of challenges.

A relentless surge in inflation is delivering a harsh blow to the commoner. Experts say that Nepal’s economy seems trapped in a downward spiral of high inflation and sluggish growth. Pushpa Kamal Dahal’s government is facing intense pressure from opposition parties and various stakeholders to take immediate action to revive the faltering economy.

A report published by Nepal Rastra Bank reveals that consumer price inflation reached a worrisome 8.19 percent in mid-Sept 2023, up from 7.52 percent in the previous month. According to the World Bank, consumer prices are scaling new heights in the current fiscal year.

The numbers are unsettling. Food and beverage inflation has skyrocketed to 9.74 percent, while non-food and service inflation is at 6.99 percent. Economists are sounding the alarm, warning that inflation is poised to rise in the coming months, further increasing the cost of living.

Economist Dilli Raj Khanal says the rising inflation is a glaring example of failed monetary policy. He warns that inflation is likely to grow after the festivals if the government fails to see the problems through new and innovative ways, adding that fresh crises are on the horizon. 

The price index for spices has surged by an astonishing 45.46 percent, sugar and sugar products by 17.86 percent, and vegetables by 14.51 percent. Cereal grains and their products are up by 13.38 percent, milk products and eggs by 12.60 percent, and restaurant and hotel prices have climbed by 10.97 percent. The brunt of this rising inflation is felt most acutely by the people. 

In its recent report, the World Bank underscores the challenges of taming high inflation and the need for a careful balancing of policies to stimulate growth.

The decline in edible oil prices from Feb 2023 onwards, reflecting global price reductions, had an offsetting effect on prices. But the persistence of high inflation impedes policies to stimulate growth. Nepal’s vulnerability to external shocks implies a difficult trade-off between policies that boost growth and those that contain inflation.

The World Bank report also identifies key drivers of food price hikes, including supply side shocks such as India’s export restrictions on wheat and rice, along with domestic policy changes like the removal of VAT exemptions on basic food items. The report further highlights the importance of price support to producers of rice, milk and wheat.

To compound matters, factors like the lumpy skin disease and unpredictable monsoons are impacting agricultural output, while services and industry are being affected by higher-than-expected import prices and export bans from India.

In this tumultuous economic landscape, Nepal’s private sector has voiced its concern, claiming that international financial institutions are exerting undue pressure on Nepal Rastra Bank and the Ministry of Finance. Despite the various challenges the nation faces, Nepal’s external position has strengthened, thanks to prudent fiscal and monetary policies, thriving remittances, and a boost in tourism.

However, the number of Nepali workers taking approval for foreign employment decreased 28.3 percent to 74,466 in September.   

The Nepali remittance sector, according to the NRB report, saw a remarkable 22.1 percent increase to Rs 228.37bn compared to an increase of 19.8 percent in the same period of the previous year. However, the number of Nepali workers seeking approval for foreign employment has seen a significant 28.3 percent decline to 74,466 in September. The economic landscape is complex, with some positive signs like a 3.8 percent increase in gross foreign exchange reserves to Rs 1,598.9bn in mid-September compared to Rs 1,539.36bn in mid-July 2023.

While Finance Minister Prakash Sharan Mahat acknowledges some gradual improvements in the nation’s economic situation, it's evident that not all internal indicators suggest a smooth ride.

Reflecting the current state of affairs, the government’s total expenditure reached Rs 131.14bn in the first two months of the fiscal year 2023/24. Recurrent expenditure, capital expenditure and financial expenditure stood at Rs 87.66bn, Rs 8.16bn, and Rs 35.31bn, respectively, during the review period. Up till mid-Sept, the government’s total revenue collection, including funds transferred to provincial and local governments, reached Rs 141.08bn, with tax revenue accounting for Rs 127.96bn and non-tax revenue at Rs 13.12bn.

The total expenditure stood at Rs. 4.77bn and resource mobilization of provincial governments stood at Rs 21.16bn, respectively. The total resource mobilization of provincial governments include the grants and revenue transferred from government totaling Rs 15.15bn, and revenue and other receipts of provincial governments totaling Rs 6.01bn.

The provincial governments have also been active on the financial front, with total resource mobilization reaching Rs. 21.16bn. This figure includes grants and revenue transferred from the central government, amounting to Rs 15.15bn, as well as provincial governments’ own revenue and receipts, totaling Rs 6.01bn.

Economy at a glance

• Inflation at 8.19 percent
• Exports decrease by 7.8 percent
• Trade deficit decreases by 4.7 percent
• Remittances increase by 22.1 percent
• Balance of payment remains at a surplus of Rs 53.61bn
• Forex stood at Rs 159.90bn
• Government expenditure amounts to Rs 131.14bn
• Revenue collection Rs 141.08bn

The much-talked-about initial public offering (IPO) of companies through the book building mechanism has been completed. Mukti Nath Shrestha, spokesperson at the Securities Board of Nepal (Sebon), said, “This process, following extensive efforts from Sebon and other stakeholders, has achieved a significant breakthrough.” He described the development as “historic”.

Book building is the process by which an underwriter attempts to determine the price at which the IPO of a company is offered. An underwriter, usually an investment bank, builds a book by inviting institutional investors (such as fund managers and others) to submit bids for the number of shares and the price(s) they would be willing to pay for them.

Sarbottam Cement received permission to issue IPOs through book building at a cutoff price of Rs 401 per share on Oct 16. Previously, Sarbottam had set a maximum price of Rs 751.50 per share.

Sebon Chairperson Ramesh Hamal stated, “Book building serves as a means of price discovery, promoting equitable issuance of IPOs with extensive involvement from institutional investors and significant buyers.” He added that it also enables companies going public to secure considerable capital and collect pricing insights from prospective buyers. “Employing the book building approach for IPOs will improve the transparency, governance and accountability of share prices.”

According to Hamal, the commencement of the book building process will encourage many investors and companies, previously hesitant to issue an IPO, to consider doing so. “It will aid in enhancing national revenue contribution and contribute to the overall national economy.”