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Nepal’s economy heavily relies on remittances for foreign currencies, which is equivalent to more than 20 percent of its GDP. However, the remittance inflow decreased by nearly six percent in the first six months of the fiscal year 2021/22, according to a recent Nepal Rastra Bank report. This remittance contraction was observed despite an increase in the number of people going abroad for jobs following an improvement in the Covid-19 situation. Priyanjali Karn of ApEx talked to Khilendra Paudel, the CEO of IME, Nepal’s first remittance company, to know about the current remittance situation.  

What role does remittance play in the economic wellbeing of Nepal?

The signing of the Treaty of Sugauli in 1816 ignited the trend of Nepali people migrating to foreign countries for employment, and this continues still. At present, approximately 3.5m Nepalis are working abroad, which accounts for almost 14 percent of the total Nepali population. The hard-earned money that migrant population sends back to their families is a major contributor to Nepal’s foreign currency earnings. The country receives about Rs 900bn in remittances through formal channels. This is about 25 percent of our gross domestic product (GDP). So remittance is one of the major factors that helps maintain the macroeconomic stability and the overall well-being of the country. 

How do you think we can promote formal channels of remittance?

There is an undeniable need to formalize the channels through which remittances enter the country. For this, the role of government is pivotal. Policies in relation to economic growth, interest rate, and exchange rate policies are crucial determinants of remittance inflows. To encourage the inflow of remittances through formal channels, introduction of special incentive packages for the migrant population can serve as a mode of encouragement. This method is currently being practiced by some of the SAARC countries like Sri Lanka, Bangladesh, and Pakistan, whose economies, like Nepal’s, heavily depend on remittances. 

Despite their contribution to the country’s economy, many workers are still being swindled and exploited. What do you think should be done to guarantee the safety of migrant workers?

Ensuring the safety and security of Nepali people migrating abroad for employment has to be the highly prioritized by the concerned government bodies. Entering into a bilateral labor agreement with the countries of destination indeed plays an important role in assuring the wellbeing and security of workers. Nepal has labor pacts with just nine of the 109 major destination countries, namely the State of Qatar, the United Arab Emirates, the Republic of Korea, the Kingdom of Bahrain, Japan, the Hashemite Kingdom of Jordan, Malaysia and Mauritius. Thus, entering into labor agreements with other major destination countries can be the first step toward safe migration. 

How has IME been responsible and accountable to the workers and contributed to the incoming remittances?

For the past 20 years, IME Limited has been serving the migrant workers involved in foreign employment by facilitating them to send back their hard-earned money to their families in the safest, credible, and secure way. No matter the hardship of the situation, IME has always made an effort to make remittance services affordable and accessible. Where IME stands today is solely because of the reliable service we have been offering to the Nepali migrant workers. As a pioneer in formalizing the remittance channel, today, IME takes pride in bringing in remittance money from more than 100 countries.

IME is not just a remittance company but also a conglomerate of businesses. One key area where the group works is capital market. Why do you think Nepal should focus on connecting remittances to the capital market?

We are well aware of public enthusiasm for the IPO (initial public offering) and share market. This can be one of the best opportunities for Nepal to leverage the interest of the public by connecting remittances to the capital market. Allocating a quota for the migrant population can promote formal channels as well as encourage investment in productive sectors. 

Why vote? This is the question many people are asking on the eve of the May 13 local election. Pratik Ghimire of ApEx put the same question—plus a few more—to Ila Sharma, former commissioner at the Election Commission.

Why is local election important?

It is important to decentralize the centralized power. Without local elections, there won’t be any local governments, which will deprive us of government services at our doorsteps. It is also crucial for local development because the respective villages know what model of development is necessary in their areas, not Kathmandu.

Why should people vote in local elections?

By voting we elect our representatives so that they can govern us. If we don't vote, there will be no grounds to complain against the incompetence of the ruling representatives. So to send progressive candidates, who you think can bring about meaningful reforms in your area, you must vote.

What is the historical trajectory of voter turnout in Nepal?

Studies suggest that the voter turnout of developing countries is better than that of developed countries. We have a similar case here. We have a good voter turnout. People in developing countries are mostly fed up with the political situation and incompetence of their leaders. This encourages them to vote and try alternative leadership.

What reforms do you advocate in our electoral system?

There are a lot of things. We can write a book on it. But the important ones are curbing electoral expenses, guaranteeing inclusiveness, and adopting an electronic voting system.

Our constitution says that there should be at least one female candidate for the post of mayor/chairperson or deputy mayor/vice-chairperson. But it also says, this provision only applies if a single party fields candidates for both the posts—and it does not apply to a coalition of parties. This has significantly undercut the participation of female and other marginalized communities.

Likewise, if electronic voting were introduced, no vote would be wasted.

Also, there are issues of incorporating ‘none of the above’ (NOTA) voting option on ballot papers and ensuring voting for Nepali immigrants. 

How would you compare Nepal’s grassroots democracy, say, with the same in the rest of South Asia?

On paper, we offer a lot of promise. But in practice, there are many things that need to be improved. Yet, compared to other South Asian countries, we are doing well as our grassroots democracy is more powerful than that of India or Bangladesh.

Balen Shah, an independent mayoral candidate for Kathmandu Metropolitan City, is a rapper and structural engineer. While Shah is certainly popular among young Nepalis, it remains to be seen how he fares in the May 13 vote. Kathmandu has almost 300,000 voters and Shah’s main competition is said to be against Srijana Singh of Nepali Congress and Keshav Sthapit of CPN-UML. Samikshya Baskota of the Bibeksheel Sajha Party, Madan Das Shrestha of the Rastriya Prajatantra Party, and two other independent candidates—Sushil Thapa and Sunil Sayami—are also in the fray. With the mayoral race in Kathmandu heating up, Pratik Ghimire of ApEx talked to Shah. 

What inspired you to contest local elections? 

As an engineer, I have worked with many municipalities on various projects. This gave me a chance to analyze local bodies’ budget structures and works. Almost 70 percent of a local government’s budget is engineering-related, but that isn’t utilized fully due to lack of knowledge, vision, and incompetence. I realized I could better utilize the budget than most other candidates in question. This is why I registered my candidacy. 

Explain your key agendas for a better Kathmandu. 

We will focus on the basics that a metropolitan city must have. They are, primarily, health (physical and mental), education, and solid waste management. We will also work on drinking water, heritage, transport, tourism, open spaces and greenery, insurance, security, etc. 

We have planned an ‘idea bank’ where the public can bring entrepreneurial ideas and our government will help them financially. Similarly, our local products will get 10-20 percent space in marts and shopping malls. 

For drinking water, we will rely on the traditional-scientific way of water harvesting. For waste management, a dedicated team will be set up to oversee waste segregation. Nearly 70 percent of the solid waste Kathmandu generates is organic, which could easily be turned into organic fertilizers. We have clearly mentioned all these plans (as well as the underlying processes) in our manifesto. 

Photo: Saroj Baizu

Do you have any plans on registering a political party? 

No. While I do believe in a multi-party system, I also believe that local bodies don’t need political parties. Elected representatives should be busy working for people’s welfare. So a social reformer with a proper vision and action plan should lead at the local level. The third tier of the federal government should be free of political parties.  

How do you view your rivals in this race? 

We all know they have no proper agenda, as has been proven by recent mayoral debates and public interactions. They talk about beautiful Kathmandu, but they are yet to explain what they mean by ‘beautiful? 

I, on the other hand, have analyzed real data, shortlisted problems, researched applicable solutions, and prepared a blueprint for everything. We are talking about the processes that will give us results. 

If you win, what changes can we expect in Kathmandu after five years? 

The basic but notable things. When you step out of your house, you have to face dozens of hassles such as unsafe roads, traffic jams, and pollution. These things contribute to your mental fatigue. Similarly, community schools will prioritize children’s skill development and offices will adopt digital technology for swift, efficient services. If I win, you will see a hassle-free Kathmandu Metropolitan City. I will implement tried and tested plans for this city. 

Video interview (Engineers Vlogs with Balen Shah) here.

Covid-19 cases are surging in different states of India. The country’s positivity rate, which indicates the spread of the disease, has gone up to three percent from 0.5 percent—within a week. As Nepal shares a 1,850km-long open border with India, there is a risk of a coronavirus resurgence here as well. With local-level elections knocking on the door, political campaigns and rallies could also fuel the spread. Pratik Ghimire of ApEx talked to Dr Anup Subedee, infectious disease consultant at Medharma CliniX. 

Can we predict the next covid wave in Nepal based on what is happening in India?

Cases in India directly impact Nepal, as we saw in the previous waves. But till this point, the new covid cases in India are yet to be thoroughly examined. So it is difficult to predict what will happen. Indian officials claim no new variant has been detected, but I doubt there has been enough research.  

Is the next wave the most likely scenario in Nepal?

If the new cases in India are of the current Omicron (BA.2) variant, there is a low probability of an outbreak, as two waves of a single variant are rare. An increase in new cases is not a new thing, as the covid trend suggests a rise in such cases every few months. This is both predicted and expected. 

Yet, every six months, we have seen a new variant too. If that happens, it could result in the next wave. But again, it is too early to predict because we have little information as of now. 

Could upcoming elections help with the spread of coronavirus? 

Hard to say. But mass demonstrations and political campaigns that took place in Kathmandu during the Delta variant surge had played a key role in previous outbreaks. So elections this time could also have an impact, as there will be more than usual mobility of people. Nepalis working in India will come home to vote. This could lead to the virus reaching various corners of the country. Everything depends on which variant it is—the old one or the new. 

Right now, we don’t have many cases, so there is nothing to panic about. But that also suggests we might not have conducted enough tests. Further, the Health Ministry doesn’t have real data. It is important to fill these gaps because we can’t prepare and fight effectively without real data. 

What do you suggest?

The holding centers and quarantines should be in working condition. We rushed to set up the infrastructure only after the pandemic hit the country. By that time, it was too late. So preparation is important. 

To some extent, our incompetence has also invited trouble. The vaccine campaign looks dormant at the moment. Many people don’t know the current vaccine situation in Nepal. There are eligible people who are yet to get the jabs. Some have refused to take them, but the government should convince them. Also, the vulnerable groups have not gotten their booster doses. Many have not even taken the second dose. 

Again, we have no proper data to track things down. For the current variant, the vaccines that are being given to Nepalis are fine, but there could be better options. The authorities should focus on importing more effective vaccines. 

How long do we need to keep taking booster doses?

Booster doses should be routinely administered unless a vaccine that provides lifelong immunity is invented. We should also import the most effective vaccines like Viral Vector (AstraZeneca) and RNA (Moderna, Pfizer). Novavax is also effective.