Monetary policy should be flexible to make economy dynamic: PM Oli
Prime Minister KP Sharma Oli has asserted that the new government was formed to resolve problems surfaced in the country and to make some changes.
During the discussion with office-bearers of the Confederation of Nepalese Industries (CNI) today, Prime Minister Oli clarified that he did not take the responsibility of the Prime Minister this time just for the sake of it as he had already become the Prime Minister.
He mentioned, "The main objective of the incumbent government is to resolve the existing problems and to strengthen the country's economy. I became the Prime Minister this time with the determination to resolve the problems and to make some changes in the country, and not only for the post. So, the private sector should work together with the government believing it."
Expressing the view that tax rate should not be changed at the behest of someone and the private sector should protest against wrong policies, the Prime Minister stressed that the monetary policy should be flexible to make the economy dynamic.
On the occasion, CNI president Rajesh Kumar Agrawal urged the government to work with high priority to lift up the economy which has slowed down since the last three years. Stating that although the external sector is encouraging, the domestic economy was still in problem as the productive and construction sectors have been affected the most, he stressed on the need of boosting the morale of the private sector.
The CNI President underscored on making the sluggish economy vibrant through monetary policy.
CNI former presidents Bishnu Kumar Agrawal, Satish Kumar Mor and Haribhakta Sharma, vice-presidents Nirvan Chaudhary, Birendra Raj Pandey, Raj Bahadur Shah, Amit Mor and Bhim Ghimire, and the governing council members Shiva Ratan Sharada, Yogeshwar Lal Shrestha and Bal Krishna Shrestha, among other officials, shared on the present condition of the economy and gave suggestions to the PM on ways of improving it.
The week that was
Dear readers,
This week, KP Sharma Oli, chairperson of CPN-UML, was sworn in as prime minister for the fourth time in his decades-long political career. He first became prime minister in 2015 during India’s economic blockade, led a communist government in 2018 with support from more than two-thirds of the parliament, and briefly served again in 2021.
Oli had not expected to return to power so soon. If the alliance between CPN (Maoist Center) and UML had continued, Pushpa Kamal Dahal might have handed power to Oli after two years. However, by allying with the largest party in the Parliament, the Nepali Congress, Oli returned to power this week. According to their agreement, he will hand over power to NC President Sher Bahadur Deuba after two years. Initially, the NC and UML had mooted a national unity government with the Maoist Center. The plan was to let Dahal lead for an additional year, then hand over to Oli, who would eventually pass the leadership back to Deuba. This proposal fell through as the NC and UML doubted Dahal. Including all major parties in a national unity government would have been ideal.
Soon after his appointment Prime Minister Oli formed a 22-member cabinet without the delays seen in the past, which is a positive start. But the cabinet has faced scrutiny for its poor representation of women, Dalits and other marginalized communities. The new government's main priorities are stability, economic recovery and constitutional amendments. However, the agreement between the NC and UML has not been publicized, and the coalition has yet to present its Common Minimum Program (CMP). Oli is expected to outline the government’s policies and priorities during his address to the parliament on July 21, while seeking a vote of confidence.
Major powers, including India, the US and China, have congratulated Oli on his appointment. Foreign ambassadors in Kathmandu are also visiting Singhadurbar to congratulate the new ministers. These powers are keenly awaiting the NC-UML coalition’s foreign policy blueprint. Observers are interested in how the two parties, with differing views on some issues, align their positions to present a unified message on bilateral and global matters. In the past, the UML has criticized the NC for failing to balance relations between India and China.
Now, with the two parties working together, close coordination among the top leadership is essential to avoid contradictory messages. The newly-appointed Minister for Foreign Affairs, Arzu Rana Deuba, has pledged to maintain balanced and cordial relations with major powers. Incidentally, Nepal established formal diplomatic relations with the Republic of Kiribati this week. Nepal now has formal diplomatic ties with 183 countries, which is a good thing. We hope Nepal’s diplomacy will further expand and prosper under Deuba’s tenure.
On the economic front, Nepal Stock Exchange (Nepse) index hit a 26-month high and breached the psychological 2,300-point mark this week. The stock market rally coincided with UML Vice-chairperson Bishnu Prasad Poudel’s return to the finance ministry. While this stock market bump bodes well for Paudel, he still has a challenge of addressing some crucial issues, such as increasing capital expenditure, stimulating loan demand, boosting private confidence, and making the market dynamic.
How will the latest coalition government under Prime Minister Oli fare? It is too early to tell but Prime Minister Oli’s one-week in office leaves a lot to be desired. The prime minister has spent his first week attending public functions, rather than channelizing his time and energies on prime ministerial duties, especially at a time when the country is facing several challenges. As the leader of the country, Oli should inspire optimism among the people, restore faith in the government.
In the coming weeks, people will closely watch the new government’s activities and performance. There is high hope that the government will take initiatives to improve the economy, create jobs, and inspire confidence in the populace about their future.
Meanwhile, out of power, CPN (Maoist Center) leader Dahal has started forming a strong opposition by bringing together fringe communist parties. This week, he organized a meeting with parties including CPN (Unified Socialist) led by Madhav Kumar Nepal. With the NC and UML forming a coalition, the opposition parties are in a weaker position in the parliament. Dahal aims to unite Maoist splinter groups to bolster his influence. When in power, Dahal often disregards these smaller parties, but out of power, he aligns with their agendas.
In another story this week, a landslide swept away two buses and plunged them into a flood-swollen Trishuli River at Simaltal in Bharatpur Metropolitan City-29, Chitwan district. Of the 65 passengers, three survived, while 62 others were swept away. As of Thursday, authorities have managed to recover 18 bodies. The government has formed a committee to investigate and sought assistance from India, Bangladesh and other countries for rescue operations.
Our thoughts and prayers go out to the families of the deceased and those still missing in the tragic accident. Let’s hope the search operation is successful, and that the new government comes up with a solution to make our highways safer for travel, particularly during the monsoon season.
That’s all for this week.
Bishnu Rimal appointed chief political advisor, Dr Khatiwada economic advisor to PM Oli
Bishnu Rimal has been appointed as the chief political advisor to Prime Minister KP Sharma Oli.
A Cabinet meeting held on Thursday appointed Rimal as the chief political advisor of PM Oli, a minister said.
Similarly, Dr Yuvaraj Khatiwada has been appointed as the economic advisor to Prime Minister Oli.
Khatiwada, who had already become the finance minister, was also a member of the National Assembly.
North Korea's trash balloons terrorize skyways
Since May 28, North Korea has launched a series of six attacks on South Korea, releasing a total of more than 2,000 trash balloons. North Korea has not only launched missiles, but also sprayed trashy garbage into South Korea from the air. While North Korea's behavior was effective enough to draw the attention of the international community and South Koreans, who have been accustomed to the news of missile launches, North Korea is threatening international community.
It's striking that North Korea is a country that was recognized by the world and joined the United Nations in 1991. North Korea's trash balloon attacks can only be described as an acknowledgment that it has abandoned its statehood and recognized itself as an abnormal state. North Koreans had hoped that their lives would improve under Kim Jong Un, but instead, the dictatorship has only gotten worse and the people have been subjected to even greater control. Since the pandemic, human rights in North Korea have become even more repressed and the economy has continued to deteriorate. Yet the regime continues to waste money on nuclear weapons and missile development without regard for the human rights and suffering of the North Korean people. In addition to its constant verbal and missile provocations against the South Korean government, the regime has also provoked South Korea by sending balloons filled with trash to South Korea. These provocations threaten the peace of not only the Korean Peninsula but also the international community.
Community, challenging international order and security, and clearly demonstrating that North Korea has given up on being a member of the international community.
North Korea's trash balloons have damaged citizens' vehicles, home windows, and rooftop roofs, and even caused fires due to malfunctioning detonators. This caused serious property damage and created a dizzying situation that could have led to human casualties. It also disrupted the takeoff and landing of aircraft at Incheon International Airport in the early morning hours of June 26th. Incheon International Airport explained that it controlled takeoffs and landings due to the possibility of an accident if foreign objects were sucked into the engines of airplanes in flight. This means that North Korea's trash balloons could lead to major accidents on domestic and international flights.
The Joint Chiefs of Staff also determined that the balloons weigh about 10 kilograms, so there is enough risk that they could cause a fatal accident if they were to dive. In the end, North Korea's provocation with these balloons is a serious act of violence that threatens the daily lives and safety of all people, both South Koreans and foreigners. This issue is a serious challenge to the international community, including the security of the Korean Peninsula, because there is a possibility that North Korea may carry out acts in the future with biological and chemical agents instead of trash.
Recently, South Korea's Ministry of Unification released the results of its analysis of North Korea's trash balloon. "An expert analysis of the soil found a large number of parasites, including roundworms, whipworms, and whipworms, in the soil contained in the spraying waste,"
The ministry said, adding, "Human genes were also found in the soil, suggesting that the parasites came from human food." These parasites are common in underdeveloped countries where people use human fertilizer instead of chemical fertilizers and where living conditions are unsanitary. Analysis of the balloons' contents also revealed the poor living conditions in North Korea.
The balloons contained socks that had been worn multiple times, cloth gloves, cloth masks, cloth T-shirts, baby pants with holes in them, and socks. This is a stark reminder of the dire living conditions in North Korea that the regime tries to cover up. The children's clothing and socks were particularly worn out. While North Korea is spending its resources on nuclear and missile development, its people are living in poverty and violating their human rights by not having basic hygiene and not wearing proper clothing.
North Korea's provocations are not a matter for South Korea alone, but for the international community.
North Korea's provocations with trash balloons are not just a threat to the South Korean people, but also to all citizens of the world traveling to and from South Korea, and should be treated as a serious act of provocation by the international community. Therefore, the international community must condemn North Korea's provocations in terms of international law and ethics and strongly hold the Kim Jong Un regime accountable. We hope that the international community will strictly condemn North Korea's extraordinary provocations and work together to pressure the North Korean regime to stop its low-level provocations to ensure a safe future for the international community.
The writer is North Korean defector who came to South Korea in search of freedom in 2008. He is currently working as a film director and freelance broadcaster.