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Many children have fallen victims to trafficking in orphanages. But Nepal government doesn’t recognize the term ‘orphanage trafficking’, despite being the 176th country to ratify the Protocol to Prevent, Suppress and Punish Trafficking in Persons or the Palermo Protocol that considers the current situation of child care homes (CCH) in Nepal as orphanage trafficking. Anushka Nepal from ApEx caught up with Amrita Poudyal, head of programs (South Asia), ECPAT Luxembourg, an INGO working for child protection. Child Care Homes (CCH) should be the last resort for children to live in. But still, many CCHs, in the past, have sheltered children who have parents or guardians to look after them. It’s orphanage trafficking. Is that still prevalent? The problem with orphanage trafficking is that the Nepal government has not yet recognized the term ‘orphanage trafficking’. Obviously, there are many children still being kept at CCHs despite having parents or guardians to look after them. But orphanage trafficking has not been defined in any of the acts, and the Human Trafficking Act has not been revised. So, if you ask me if orphanage trafficking is prevalent, it is. Still children are being sheltered in orphanages despite having parents or guardians. Internationally, that is recognized as orphanage trafficking. But the Nepal government doesn’t, so the answer becomes a bit more complicated. Has this situation gotten any better with the passing years?   I think it has. Looking at the past data, orphanages running in Nepal have decreased from 489 to 417. That’s because the National Child Rights Council (NCRC) has come up with a certain guideline that every CCH must follow. Also, they are required to register within the NCRC, which won’t happen if needed criterias are not met. Secondly, several municipalities have held training sessions for the ones who run orphanages on how a CCH should work. There were a few who handed over the children from their shelter to the municipality when they realized they could not meet the needed standard for running an orphanage. So that shows that things are falling into the system. And the orphanages are constantly monitored. If the criterias aren’t met, either they are given a timeframe to meet the criteria or are requested to shut down. What are the obstacles you face in tackling these issues? The problem is that, when it comes to the guidelines, it only says what needs to be done, but does not mention what happens to the involved party when the criteria mentioned in the guideline is not met. So it’s not obligatory. It looks more like a recommendation. And the other problem, again, is the government not recognizing the term ‘orphanage trafficking’. Are there ways for the government to ensure if CCHs are following needed regulations to create safe space for children? If so, are they doing a good job?  Nepal became the 176th country to ratify the Protocol to Prevent, Suppress and Punish Trafficking in Persons, commonly known as Palermo Protocol in 2020. Since Nepal has made the ratification, this protocol stands above the domestic laws, and the country should be amending their domestic laws to align with this protocol. Doing so would be one way to ensure safe space for children in Nepal, when it comes to their involvement with orphanages. But the government has not shown any progress to amend the Human Trafficking and Transportation Act that aligns with this protocol. But the government has addressed issues related to child protection in orphanages on their five years strategic plan which was finalized in Dec 2022. In the past, we have come across several news articles related to pedophilia and sexual harrasment in Nepal’s CCHs. Are these cases still on the rise or are they being mitigated? I think when it comes to the cases of pedophilia in orphanages, we have come across cases where the accused were both Nepalis and foreign nationals. I saw a high number of cases that involved foreign nationals during the Maoist insurgency. But the number has decreased since then, although we do see a few cases here and there. But that doesn’t mean the cases of sexual harassment as well as pedophilia has been mitigated. In fact, I believe it’s increasing. That’s because there are many platforms that influence these kinds of behavior, major being social media outlets. We still find Nepalis who lure children into orphanages, resulting in many cases of sexual and physical abuse. Vulnerable groups are being targeted not just in person, but also through online platforms, luring them with employment and educational opportunities. Although I don’t have the data to show the increment in cases, the cases I have come across in my time of career indicates that they are still on the rise.

The tax on cigarettes in Nepal is the lowest in South Asia. At a time when the government is putting a 13 percent value-added tax (VAT) on daily essentials like potatoes and onions, it did not increase the tax on cigarettes significantly in the budget for the fiscal year 2023/24. Compared to most countries in the world, taxes on tobacco and cigarettes are very low in Nepal. The government only increased the tax on cigarettes by three percent. In this context, Pratik Ghimire of ApEx talked to Anjana Lamichhane, research associate at Nepal Development Research Institute (NDRI).

Despite the continuous lobbying, the government didn’t impose high tax on tobacco products. Why do you think so?

The current tax rates imposed on tobacco products in Nepal remains considerably low compared to neighboring countries and international recommendations. In the previous two years, the government had raised around 50 percent (25 percent in 2021/22 and 20 percent in 2022/23) excise duty and 20 percent increase in health hazard tax. But this year, the government has increased excise duty on tobacco products by a paltry 3 percent, bringing the total tobacco tax to 41 percent. However, it is lowest in South Asia as India and Sri Lanka impose significantly higher taxes, accounting for 53 percent and 77 percent of the retail prices, respectively.

The World Health Organization (WHO) recommends a minimum taxation of 75 percent to effectively discourage tobacco consumption.  There has been no increase in the Health Hazard Tax this year. When accounting for the estimated inflation for the upcoming fiscal year, the overall percent of tax will decline to 39 percent from the 41 percent, further hampering the recommendations and needs. Despite our heightened lobbying efforts this year—surpassing the efforts made in the past five years—the government has failed to significantly increase the tax. It is difficult to ascertain the exact reason behind this unexpected turn, as the government had assured us to impose higher taxes on tobacco. The government’s decision has caught us off guard and left us puzzled.

Do you see a nexus between the government and tobacco-related businesses in this matter?

I can’t say because I have no proof. Despite our efforts, the government is reluctant to impose a higher tax rate on tobacco-related products, which means the government may have come under pressure from some quarters. These things should be researched and truth must be uncovered as the high prevalence of tobacco use, coupled with the associated health risks and economic costs, demands urgent action.

Is an increase in tax the only way out to reduce tobacco consumption?

The WHO came up with the ‘MPOWER’ formula in 2008. It is a comprehensive plan comprising six essential and effective strategies for tobacco control. These strategies are: M (Monitoring tobacco use and prevention policies), P (Protecting individuals from tobacco smoke), O (Offering assistance to quit smoking), W (Warning about the hazards of tobacco), E (Enforcing bans on tobacco advertising, promotion, and sponsorship) and R (Raising taxes on tobacco). Among these, taxation plays a key role in effective tobacco control. It will take a couple of years for visible results to emerge. Tobacco is consumed by people of any background in Nepal and if the tax is increased, not everyone can afford it easily.  Increasing tobacco tax rates can have other positive effects as well. For example, it can generate substantial revenues for the government, which can be utilized to fund various development projects, improve public services, and health care, among others. 

How will this impact us?

Tobacco use poses a significant public health problem with far-reaching consequences. The affordability of tobacco products has contributed to a persistently high prevalence rate (of around 32 percent) among the population. This has led to increased mortality and morbidity from non-communicable diseases in Nepal, with an estimated 37,529 tobacco-attributable death in 2019 alone. Notably, tobacco use accounts for two out of every 10 deaths (19.4 percent) and stands as the second leading cause of death in Nepal. Also, tobacco use entails substantial economic costs, estimated at around Rs 40bn in 2022.

What are your recommendations for the budget of fiscal year 2023/24?

The Ministry of Finance must increase the excise duty on tobacco by at least 40 percent by amending the budget for the fiscal year 2023/24. A 40 percent hike in excise duty can generate an additional Rs 8.7bn to Rs 10.7bn in revenue, equivalent to approximately 2.3 percent of the forecasted budget deficit for 2023/24. Such an increase can lead to a consumption reduction of 2-6 percent.  Alternatively, a more ambitious target of a 65 percent increase in excise duty will generate revenue of Rs 13.1bn to Rs 16.8bn. It is equivalent to over 3.7 percent of the forecasted budget deficit for the fiscal 2023/24. This move can reduce tobacco consumption by about four to 12 percent.  These measures will significantly reduce damage resulting from tobacco use—both to public health and the national economy.

With a strong product portfolio and market presence, Xiaomi has been one of the leading smartphone brands in Nepal. The Chinese handset major recently launched the Redmi Note 12 series as well as Redmi 12C in the Nepali market. Besides, the company has recently launched the new Xiaomi Exchange Offer. ApEx talked to Amit Kumar Panda, Country General Manager of Xiaomi Nepal to know about the market expansion of Xiaomi, newly launched products, and the current state of the company’s business in Nepal. Excerpts: Xiaomi has achieved big success in Nepal since its official market inception in 2018. What factors are behind this success? Xiaomi’s success can be attributed to its dedication to providing affordable yet high-quality products, its innovative business approach, strategic global expansion, investment in research and development, and effective leadership. These factors have allowed Xiaomi to attract a wide customer base, foster brand loyalty, stay ahead of industry trends, and establish itself as one of the fastest-growing brands in its field. The brand has become popular among consumers due to its competitive pricing, feature-rich devices, and reputation for offering value-for-money products. We prioritize delivering the best specifications, superior quality, and fair pricing. Xiaomi’s focus on affordable smartphones with impressive features has resonated well with price-conscious Nepali consumers who desire high-quality devices at affordable prices. Our expansion in the Nepali market has been facilitated by effective marketing strategies, extensive distribution networks, and reliable after-sales service. The company has made an effort to understand the needs and preferences of Nepali consumers and tailor its product offerings accordingly. This customer-centric approach has played a crucial role in building a loyal customer base for Xiaomi in Nepal. We express our gratitude to our Xiaomi Fans for their appreciation and support which has helped us to become the number one smartphone brand in Nepal for the past three years. The company has recently launched the Redmi Note 12 series. What are the key features of the phones of this series? With the Snapdragon 685 Mobile Platform, the Redmi Note 12 offers a smooth and efficient multitasking experience across various activities such as photography, gaming, audio, and streaming. On the other hand, the Redmi Note 12 5G is equipped with the Snapdragon 4 Gen 1 5G processor, which provides reliable performance for content creation, gaming, and 5G connectivity. Meanwhile, the Redmi Note 12 Pro 5G utilizes the MediaTek Dimensity 1080 processor, delivering impressive performance for gaming, daily tasks, content creation, camera processing, and 5G connectivity. Our competitive pricing strategy further solidifies its position in the market. By offering affordable options without compromising on quality or features, Redmi attracts a larger customer base and gains market share. This approach enables Redmi to effectively compete with other smartphone brands by providing a compelling value proposition that resonates with consumers in Nepal. The positive perception of Redmi’s affordability fosters long-term customer relationships and opens doors for further market expansion. Could you elaborate on the significance of Redmi 12C’s pricing strategy? The Redmi 12C is designed as an entry-level smartphone to meet the demands of budget-conscious Xiaomi users in Nepal. However, we have not compromised on the technology and specifications of the device. We understand that affordability plays a crucial role as it enables a broader range of consumers to access and benefit from advanced technologies. There is a significant market demand for budget smartphones, and by offering a device with robust specifications at a lower price point, Redmi allows more individuals to enjoy the advantages of modern smartphones. We recognize that many consumers prioritize affordability, and our aim is to provide them with a device that offers excellent value for their money without compromising on quality or features. With the introduction of 5G capabilities at a price equivalent to a 4G device, the Redmi Note 12 5G stands out as the best affordable 5G phone in Nepal. Can you shed light on how Redmi managed to incorporate flagship features without compromising on specs and quality at such a competitive price? Redmi has successfully managed to incorporate flagship features and maintain high-quality specifications in the Redmi Note 12 5G while keeping it affordable in the Nepali market. This achievement is made possible through Xiaomi's strong supply chain, efficient manufacturing processes, emphasis on research and development, direct-to-consumer business model, and strategic pricing approach. These factors collectively enable Redmi to offer a budget-friendly 5G smartphone without compromising on specifications or quality. They prioritize delivering value-for-money products to cater to a wide range of consumers, including those who seek affordable options without compromising on specifications or quality. Xiaomi Nepal has recently launched Xiaomi Exchange Offer. Can you please explain how this exchange offer works and what benefits it provides to customers? The Xiaomi Exchange Offer allows customers to trade in their old smartphones, regardless of the brand, for a discount on the purchase of a new Xiaomi, Redmi, or POCO device. The valuation of the old phones is conducted at www.nayapurano.shop, and the customer can choose to exchange for our phones. This initiative is designed to provide customers with added value and convenience while encouraging them to upgrade to the latest Xiaomi products. Additionally, as a token of appreciation for choosing Xiaomi, we are offering an extra Rs 1,000 off on the purchase of the recently launched Redmi Note 12 5G via Xiaomi Exchange Offer. This demonstrates our commitment to delivering exceptional value to our Xiaomi fans. Moreover, through the exchange process, customers can also upgrade their existing 4G phones to 5G models. Could you shed light on the significance of setting a new benchmark for Nepali smartphone consumers and how it reflects Xiaomi’s commitment to meeting their needs? When Xiaomi sets a new benchmark, it signifies our commitment to pushing the limits of technology, design, and affordability. By introducing advanced features, powerful performance, and competitive pricing, Xiaomi raises the standard for other smartphone manufacturers, fostering healthy competition and driving innovation within the industry. Through the boundary-pushing approach, Xiaomi aims to deliver products that provide excellent value for money while incorporating valuable consumer feedback. This constant drive for improvement allows Xiaomi to enhance the smartphone experience for Nepali consumers and maintain its position as a preferred choice for those who appreciate cutting-edge technology. Nepali economy is currently in a downturn which has affected business activities in the country. How has it impacted Xiaomi’s business? In the current global economic situation, where the economy is experiencing significant strain, we at Xiaomi carefully plan our product offerings. Our focus is on providing pocket-friendly products to our Xiaomi Fans, ensuring that they don’t have to spend unnecessary money. With this in mind, we have introduced the Redmi 12C in various variants and priced them accordingly. As smartphone usage has increased recently, people tend to opt for higher-end and latest models. In response to this trend, we have adjusted our plans and pricing, taking into account the prevailing recessionary conditions. Our aim is to launch products in price ranges that are easily affordable for our Xiaomi fans. We are delighted with our market growth and the fact that we have been leading the market. Compared to the previous year, our growth has reached a significant 35 percent. Despite the challenging economic circumstances, it has been a blessing for us that our Xiaomi fans have shown immense love and support for both us and our new product offerings.

The country witnessed a marked increase in temperature this summer. In many districts of the Tarai plains, the mercury has soared above the 40°C mark, affecting everyday life. In this context, ApEx caught up with Sanot Adhikari, an environmental expert, to know more about the effects of sudden rise in temperature. Weather in Nepal now is different from what it used to be. How worse can it get? This year, the temperature all over Nepal rose drastically. The same thing had happened in the year 2005. So the possibility for the temperature rise was always there. But with the increasing climate change, predicting weather has become challenging. When we analyze the weather changes seen in the past few years, none of them have followed a certain trend. It’s random. For instance, even this year, it snowed during February and March, rather than December and January. There is a possibility that the weather in the coming years might get worse, but we can’t say that with certainty since the weather changes now have become unpredictable. Is there anything that can be done to improve the climate or is it already too late?  Sadly, it’s too late to go back to stabilize the weather. Climate change has had a severe effect on global weather, and the impact isn’t reversible. But that doesn’t mean there aren’t things we can do to not let this get worse. First would be to reduce the emission of harmful gasses like carbon monoxide. But the problem is, emission of harmful gasses is a global problem, while the effect is being seen locally. It’s true that Nepal, in some percentage, has contributed to climate change, but it’s mostly the developed countries that have made the climate change worse. So, it all comes down to how the emission of such gasses can be reduced globally, rather than what can be done only in Nepal. How has this weather change affected our ecosystem? Recently, I came across a news article that said there was a landslide in Sankhuwasabha. It’s a district located in himalayan region. There, a layer of snow is usually hidden inside a layer of mud, since the region is quite cold. Since the temperature rose, the snow melted, resulting in a severe landslide. This is just one example of how the ecosystem of Nepal is slowly being affected with this rise in temperature. Similarly, the amount of water has been decreasing in 70 percent of water sources all across Nepal. And since Nepal’s ecosystem is quite diverse, the effects vary from one region to another. But the bottom line is that climate change has put many living organisms as well as civilization at risk of unprecedented disasters and ecological changes. How has climate change affected people’s general lifestyle? Climate and weather contribute a lot to public health issues. Firstly, looking at the current heat and the ultraviolet (UV) rays that everyone is subjected to, most people are at risk of getting skin-related diseases. Secondly, since most of our water resources are drying up, there is also a problem of proper sanitation and hygiene in rural areas. Also, it’s during the summer when people often suffer from health issues like diarrhea, cholera and dysentery. With the increasing temperature, these health issues become more contagious. Are we on the verge of losing some rare floras and faunas because of this drastic weather change? Definitely. Climate change is one of the major reasons behind biodiversity loss. Every flora and fauna has a specific kind of habitat, and cannot sustain when the characteristics of that habitat changes. I can’t exactly name the organisms that have gone extinct, but there are many who haven’t been able to survive because of weather changes we have been witnessing within the past few years. If this continues, we will lose several rare floras and faunas due to unprecedented changes in their habitat.