Editorial: Swing into action

The number of dengue infections is rising across Nepal. According to the Epidemiology and Disease Control Division (EDCD) report published on June 18, a total of 1,241 people have contracted the mosquito-borne disease since January this year. Dengue has been detected in 72 districts, with Mustang, Dolpa, Mugu, Humla, and Jumla being the only districts free of reported cases. Despite this, the threat of the disease spreading further looms large.

Health experts have warned that the current situation is a pre-outbreak phase, posing a high risk of a nationwide dengue outbreak. The EDCD data highlights the prevalence of cases across various districts: 141 in Kathmandu, 112 in Jhapa, 75 in Chitwan, 59 in Makwanpur, 47 in Doti, 46 in Tanahu, 44 in Sindhupalchok, 41 in Okhaldhunga, 28 in Rupandehi, 27 in Bhaktapur, and 18 in Lalitpur. Bagmati province has reported the highest number of cases, with 428 infections so far this year.

Historically, August, September, and October see the highest number of dengue cases in Nepal. With infections already on the rise, we can expect a significant increase in the coming months. This underscores the urgent need for the government to implement a comprehensive action plan to combat the dengue epidemic.

The government must immediately launch a "search and destroy" campaign along with other preventive measures to control the spread of dengue. Effective coordination among the three tiers of government is crucial to curb the infection. Since there is no specific medicine to cure dengue, prevention remains the best strategy. Wearing long-sleeved clothes and maintaining cleanliness are essential preventive measures.

Local governments, responsible for controlling communicable diseases and raising awareness in their communities, must act swiftly to eliminate conditions conducive to the rapid growth of mosquitoes and larvae. The only recommended treatment for dengue-related high fever and headaches is paracetamol. Given Nepal's past issues with paracetamol shortages, the government must ensure an adequate supply of this essential medication.

An uncontrolled dengue outbreak could overwhelm Nepal's already fragile health infrastructure and potentially claim hundreds of lives. Immediate and decisive action is needed to prevent this looming public health crisis. The time to act is now.

Editorial: Power export to Bangladesh

The Cabinet Committee on Government Purchase of Bangladesh has approved a proposal to import 40 MW of hydropower from Nepal.  Bangladeshi officials say the two countries are likely to sign the final agreement on energy trade during their Prime Minister Sheikh Hasina’s visit to Nepal. This marks a stepping stone toward unlocking the vast potential for energy cooperation between the two South Asian nations.

While Nepal, as per a study conducted decades ago, has hydropower potential of over 80,000 MW, generation of about 42,000 MW is considered economically viable. However, only a fraction of this potential has been harnessed so far. By tapping into this renewable energy source, Nepal can not only meet its domestic energy demands but also become the largest exporters of clean energy in the region. Bangladesh is grappling with a growing energy demand, thanks to its burgeoning economy and rapid urbanization. Import of hydropower from Nepal presents a win-win solution for both countries. While it opens up new avenues for revenue generation for Nepal, contributing to economic growth and narrowing down its trade, Bangladesh can diversify its energy mix, reduce its reliance on fossil fuels and mitigate the environmental impact of its energy consumption. Bangladesh currently imports 2,600 MW from India, including 1,500 MW from Adani Group’s coal-fired plant in Jharkhand.

While the quantum of import is small, it paves the way for larger and more ambitious energy trade agreements between the two South Asian neighbors. Bangladesh has shown interest to develop a hydropower project of around 500 MW in Nepal. Talks are underway to jointly develop the Sunkoshi-3 hydropower project (683 MW) in Kavre by also involving India. The fifth meeting of the secretary-level Joint Steering Committee on energy cooperation between Nepal and Bangladesh held last year decided that the NEA and Bangladesh Power Development Board (BPDB) would sign a joint venture agreement within the next six months to develop the project. There, however, has been no further development in this direction.

To fully capitalize on this opportunity, Nepal must address the infrastructural and regulatory challenges that have hindered the development of the hydropower sector. India's support is crucial in facilitating electricity transmission as Nepal and Bangladesh are not connected by land. Collaboration among these three nations could unlock the true potential of cross-border energy trade, thereby fostering economic growth and regional integration.

 

Editorial: Conduct free and fair probe

The seven-member parliamentary committee formed to investigate various cooperative scams has officially begun its work. Although the committee’s terms of reference do not specifically mention Deputy Prime Minister and Home Minister Rabi Lamichhane, its mandate includes studying claims that he misused funds from different cooperatives. The committee is powerful as it has a mandate of the House of Representatives, and its jurisdiction and terms of reference give it the authority to conduct a free and fair inquiry. However, there are concerns about the committee’s impartiality, given that the committee is under a lawmaker from CPN-UML, a party that has strongly supported Lamichhane despite opposition from other parties.

The main opposition, Nepali Congress (NC), has continuously disrupted House proceedings since the second week of March, demanding Lamichhane’s resignation. NC alleges that the hard-earned savings of commoners, parked in fixed deposit accounts at Supreme Cooperative of Butwal and Suryadarshan Cooperative of Pokhara, were illegally transferred to Gorkha Media Network. Lamichhane briefly served as a director of the company and hosted his show Sidha Kura on Galaxy TV, operated by Gorkha Media Network. The home minister has been maintaining that he hasn’t received a penny from the cooperatives. Although the ruling parties were initially against forming a parliamentary inquiry committee, they finally agreed to form the committee on the condition that Lamichhane’s name is not included in its mandate.

Much will depend on how the committee interprets and executes its mandate. A half-hearted probe that succumbs to external pressures and partisan interests will only deepen public cynicism about parliamentary oversight mechanisms. Nepali people have witnessed such failures before, where inquiry panels did not hold power centers accountable on multiple occasions. However, a thorough and impartial investigation can reignite public faith in democratic institutions and processes. By allowing the facts to speak for themselves, the committee can dispel the suspicions surrounding Lamichhane’s conduct. An independent inquiry that calls out the failure to observe standards of honesty, irrespective of positions or affiliations, would uphold the constitutional ideals of checks and balances.

The inquiry panel’s works and actions will be a litmus test of Nepal’s democratic principles and commitment to the rule of law. Any shortcoming in the investigation process could have repercussions far beyond this specific case. If that happens, it would only embolden unscrupulous people to defy legal and ethical norms with impunity.

Editorial: Challenges in budget implementation

The government has brought an ambitious budget for the upcoming fiscal year. It aims to spend Rs 1,860.39bn, achieve six percent economic growth rate and contain inflation at 5.3 percent in fiscal year 2024-25. On paper, the budget appears balanced. It focuses on economic reforms and private sector participation, and prioritizes sectors like agriculture, tourism and information technology. However, the real test lies in its implementation as the government has historically struggled in budget implementation.

One of the major hurdles is the ambitious revenue target. The government has set a target of collecting 23 percent of GDP as revenue in the upcoming fiscal year. This seems unrealistic as the government could raise only around 18 percent of GDP as revenue in the current fiscal year. There is nothing wrong in being ambitious. However, setting unattainable goals can undermine credibility and lead to significant deficits. Another challenge lies in the allocation of resources for projects without finalized agreements for foreign aid or investment. 

This tendency of allocating funds based on anticipated deals is one of the reasons behind inflated budget size with limited actual spending. Furthermore, there have been frequent policy shifts in certain sectors, such as tax incentives for billet manufacturing industries and taxation of electric vehicles. Frequent changes in policies can discourage private investment and erode investor confidence, and could derail the government’s efforts to achieve high economic growth.

Strong coordination among various government agencies and three tiers of government is needed for effective implementation of the budget. We have seen how lack of coordination among state agencies can lead to delays, cost overruns and sub-par outcomes. The budget has brought ambitious plans for economic corridors, industrial zones and special economic regions. If we are to transform these ideas into reality, we need to have a strong commitment, consistent policies and a conducive investment climate. The proposed Sovereign Wealth Fund to channel remittances into productive sectors is a promising concept. However, it remains unclear how the government intends to implement it. Moreover, slow capital spending has always been a problem in our budget implementation. The government needs to expedite capital spending if it is to achieve targets set in the budget.

The success of the budget hinges on the government’s ability to prioritize and execute important projects and initiatives effectively. Past budgets have suffered from a lack of focus, slow spending and allocation of resources thinly across numerous projects. Overcoming bureaucratic shortcomings, maintaining policy consistency and fostering an enabling environment for private sector participation will be important for effective implementation of the budget.