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Nepal’s foreign trade has declined in the first month of the current fiscal year 2023/24. According to the latest foreign trade statistics released by the Department of Customs, both imports and exports declined in Shrawan (mid-July to mid-August). The imports shrunk by 1.56 percent in Shrawan as the country imported goods worth 129.23bn in Shrawan. The imports in the first month of 2022/23 stood at Rs 131.28bn. On the other hand, Nepal’s exports decreased by 8.65 percent to Rs 13.52bn. The country had exported goods worth Rs 14.80bn in the first month of 2022/23. With both imports and exports declining, the country’s total foreign trade decreased by 2.28 percent.

According to the Customs Department, there has been a big decline in the import of petroleum products in Shrawan. The country’s petroleum products’ import bills stood at Rs 21.98bn compared to Rs 25bn during the same period of the last fiscal.

There has been growth in the imports of iron and steel compared to the last fiscal. Nepal imported iron and steel worth Rs 12.95bn in this Shrawan compared to Rs 11.23bn in the last Shrawan. The country’s vegetable imports stood at Rs 2.5bn, medicine imports at Rs 2.81bn and vehicle imports at Rs 4.29bn.

With the contraction in economic activities, digital payments in Nepal have taken a beating in the last fiscal year. While the expansion of retail digital payments remains stable, there was a reduction in the high-volume digital transactions primarily conducted through the Real Time Gross Settlement (RTGS) during the fiscal year 2022/23.

According to Nepal Rastra Bank (NRB), overall digital payment has declined by 13.22 percent in 2022/23. The NRB data shows total digital payments amounted to Rs 51640.88bn in 2022/23 compared to Rs 59508.837bn in 2021/22. As high-volume transactions have declined, NRB said that the decline in RTGS has affected the overall digital payments in this fiscal.

The latest statistics of the NRB show RTGS payments plummeted by 18.61 percent in 2022/23. In the review period, the settlements amounted to Rs 34,289.977bn compared to Rs 42,134.018bn in 2021/22.

An RTGS is a funds transfer system in which the transfer of funds between one bank and another takes place in ‘real-time’ and on a ‘gross’—transaction by transaction basis. The NRB data shows RTGS transactions increased in the first three months of the current fiscal year, then started to decline gradually.

However, retail payments through wallets, QR codes, mobile banking, and ConnectIPS surged in the current fiscal year, according to NRB. The payment through ConnectIPS grew by 33.51 percent in the last fiscal year. According to NRB, payments worth Rs 4,114.628bn were made through ConnectIPS in 2022/23 compared to Rs 3,081.764bn in 2021/22. Similarly, mobile banking transactions surged by 80.64 percent to Rs 2,185.999bn in 2022/23 from Rs 1,210.134bn in 2021/22. There has been a whopping 159.67 percent growth in QR payments in the last fiscal year as Nepalis made payments totaling Rs 245.412bn.

Digital payments which were on an increasing trend till 2021/22, reversed in 2022/23. Bankers and experts point out the current economic slowdown for this. According to them, the spending capacity of consumers has been hard hit by rising inflation resulting in a decline in digital payments.

Guru Prasad Paudel, Chief of the Payment System Department at NRB, has said that the reduction in digital transactions reflects the economic activity’s contraction. “The decline in payments through RTGS has led to a decrease in overall digital transactions,” said Paudel.

There was a significant surge in digital transactions in Nepal in early 2020 following the outbreak of the Covid-19 pandemic. The lockdowns compelled individuals to remain indoors, leading to the swift adoption of digital payment methods and online shopping for daily necessities. This shift was supported by the growing utilization of smartphones, with e-commerce and point-of-sale (POS) transactions emerging as notable trends.

Post-pandemic, digital platforms including connectIPS, e-wallets, mobile banking, internet banking, QR codes, and bank cards are being used widely as customers can use these instruments in self-service mode.

Nepal’s transitional justice process has been a long and frustrating saga, seemingly without a foreseeable conclusion. As the two key commissions tasked with investigating war-era human rights abuses—Truth and Reconciliation Commission and the Commission of Investigation on Enforced Disappeared Persons—languish without leadership, victims and international observers alike are grappling with uncertainty.

Rishi Poudel,  the TRC undersecretary, says the commission’s works are at a complete standstill in the absence of its chair and other members. 

The TRC has registered 64,000 complaints from the conflict victims, and has so far managed to muster preliminary investigations for around 4,000 cases. Around 3,000 cases have been left in abeyance due to a lack of concrete evidence. 

Similarly, the CIEDP, tasked with addressing enforced disappearances, has received a total of 3,288 complaints. Out of these, 277 were transferred to the TRC, 292 were put on hold, 136 complaints were found to be duplicative, and 48 cases were resolved. Presently, the commission grapples with 258 active complaints.

Suman Adhikari, a conflict victim, laments that the TRC has slipped down the priority list of the coalition government, instead it is being used as a bargaining chip by political parties. “We are expecting a public statement from top three leaders of major parties Nepali Congress, CPN-UML and CPN (Maoist Center) expressing their commitment to TRC and apology for the delay,” he says.

Beyond the immediate vacuum in leadership, a newly tabled bill has thrust the situation into the spotlight. The bill, introduced on March 9 this year, seeks to amend the Enforced Disappearance Inquiry and Truth and Reconciliation Commission Act of 2014. But it is a contentious move, one that has roused skepticism from both victims and the global community alike. Critics are quick to point out the bill's potential shortcomings, raising questions about its capacity to comprehensively address the multifaceted challenges at hand. 

The amendment’s hurried unveiling followed Prime Minister Pushpa Kamal Dahal’s startling statement, where he took ownership of the deaths of 5,000 individuals during the insurgency.

While registering the bill in the House of Representatives, Minister for Information and Communications Rekha Sharma had said, “The transitional justice Act needs to be amended to address a range of human rights violations, and to prosecute those individuals implicated in serious crimes.”

But victims of conflicts and the international community are not convinced. They say if enacted, the law would prevent the investigation of crimes including rape, murder, torture, war crimes and crime against humanity that were committed during the conflict.

Despite glimmers of optimism, such as provisions examining the conflict's root causes and securing reparations for victims, the United Nations experts have voiced concerns that the amendments, if adopted, could inadvertently provide sanctuary for perpetrators of grave crimes committed between 1996 and 2006. This criticism not only spotlights a potential breach of international obligations but also underscores a discord with Nepal's own Supreme Court rulings.

The plight of conflict victims is both a somber reminder of the past and a call for urgent action. The government's recent extension of the commissions' tenure until mid-January 2024 serves as a temporary reprieve, but victims remain undeterred in their pursuit of justice. 

In their ‘Kathmandu Declaration’, the victims have accused the government and major political parties of disregarding the commitments outlined in the Comprehensive Peace Agreement signed on 21 Nov 2006. 

“Had the government and political parties been serious, we wouldn’t have to wait for so long to get justice,” say the victims. “It’s been eight years since the formation of the two transitional justice bodies, but they remain largely inert and without key office bearers.” 

The conflict victims have also accused the government and political parties of registering the amendment bill by bypassing the parliamentary sub-committee that was tasked with the responsibility of preparing the amendment proposal. 

Criticizing the removal of the definition of forced disappearance from the bill, the victims have urged the government to include the definition, which is in the existing Act. They say many families don't even know the status of their missing loved ones, whether they are dead or alive. 

Likewise, they have sought provisions for compensating victims of torture, sexual violence and conflict-related atrocities, as well as return of the seized properties. The conflict victims have also called for changes in the proposed appointment procedure for officials in the transitional justice commissions. 

“Since past experiences have proved that the existing procedure is faulty, the government should make sure that the committee formed to recommend officials in the commissions should be credible, independent and fair,” they say. 

Furthermore, the conflict victims have demanded retroactive application of legislation to ensure that the perpetrators of serious crimes committed in the past are brought to justice. They have also suggested formation of a special court to handle transitional justice cases through the process similar to the establishment of a high court, rather than forming a three-member Special Court on the recommendation of the judicial council. 

The victims have also demanded for immediate implementation of the second national action plan for UN Security Council Resolutions No 1325 and 1820, which pertain to women, peace, and security. 

They have denounced the controversial amendment proposal to the Criminal Procedure Code, 2074 as well. The proposal, recently tabled  in the Parliament, allows for the withdrawal of ongoing criminal cases involving serious human rights violations. 

As Nepal grapples with its past, navigating the arduous terrain of transitional justice, the nation's commitment to lasting accountability is poised for examination.

The fate of the TRC and the CIEDP, intertwined with political dynamics and international responsibilities, represents the crucible in which Nepal's dedication to justice is being forged. The agony of victims, spanning realms from economic deprivation to emotional distress, underscores the gravity of the challenge—a challenge that can only be overcome with political will and steadfastness.

Not so long ago, the government of Nepal advised the people not to opt for panic buying of grains, stating that there was enough grain stock to outlast the upcoming harvest season. 

But the ‘comfortable situation’ appears to have changed all of a sudden.  

Recently, the government of Nepal wrote to India asking for 155,000 tons of grains and sugar, stating that India's global ban on grain export may affect Nepal too.

Spokesperson at the Ministry of Industry, Commerce and Supplies, Radhika Aryal, confirmed that the government had written to the Indian government asking for the supply of 100,000 tons of rice, 50,000 tons of sugar and 5,000 tons of paddy.

“The letter has been sent to the Embassy of India in Nepal via the Ministry of Foreign Affairs but the official reply from the Indian government has not been received yet,” said Aryal.

India has imposed a ban on the export of non-Basmati rice across the globe despite objections from the international community. The export policy of non-Basmati white rice, semi milled or wholly milled rice, whether or not polished or glazed, is amended from “free to prohibited,” reads a notice from the Directorate General of Foreign Trade.

The price of rice, Nepal’s staple food, has been escalating in the domestic market right after India announced a global ban on the export of all varieties of rice, save the Basmati. The Indian ban came after Russia announced its withdrawal from the Black Sea Grain Deal in the midst of the Ukraine war, straining a war-hit supply system and aggravating the global food crisis.

The export will be allowed on the basis of permission granted by the Indian government to other countries to meet their food security needs and based on the request of their government.

Before this move, the government had been saying that there was enough gain stock to last three months after which a new harvest season will begin. Despite the government’s assurance, panic buying has been going unabated and the traders have been making hay. As for sugar, the government has said domestic production was not enough to meet the demand.

The US Department of State’s Coordinator on Global Anti-Corruption Richard Nephew paid an official visit to Nepal this past week. According to the US embassy in Kathmandu, Nephew discussed with Nepali officials the progress regarding Nepal’s anti-corruption commitment as part of Summit for Democracy, and pledged US commitment to supporting Nepal’s efforts to eradicate corruption.

Nephew’s visit comes at a time when Nepal is investigating some big corruption scandals such as the fake Bhutanese refugee scandal, Lalita Niwas land grab and Kathmandu airport gold trafficking case. The US anti-corruption head also met Deputy Prime Minister and Minister for Home Affairs Narayan Kaji Shrestha and the leadership of the Central Investigation Bureau of Nepal Police. 

Fighting corruption is a key component of US foreign policy. In response to ApEx’s email inquiry about Nephew’s visit, a US State Department spokesperson said: “We know as a universal truth that corruption erodes public trust in government and democratic institutions, deepens poverty and inequity, threatens public security, and stifles opportunity and growth.”

“It affects people in virtually every aspect of their daily lives, draining vital resources. That is why President Biden has designated the fight against corruption as a core US national security interest and why Coordinator Nephew’s mission is so important.” 

During his two-day Nepal stay, Nephew met with various Nepali officials  to learn about corruption challenges and to confer on how the US can help address these issues as part of overall Nepal-US partnership.

The US State Department spokesperson said Nephew was not in Nepal to see the progress on any specific case of corruption. In response to ApEx’s inquiry, the spokesperson said: “Just like any allegations of corruption, the current allegations of corruption and the unlawful fabrication of refugee documents in Nepal are concerning.”

This is probably the first time the US has expressed concerns over the fake Bhutanese refugee scam.  

“We understand Nepali authorities are investigating the allegations and hope they will quickly determine what transpired, hold perpetrators accountable, and deter future corruption cases in accordance with the law and the Nepal government’s commitments to transparency and accountability,” said the spokesperson.

“The United States has consistently supported Nepali government and civil society efforts to root out corruption. Transparent investigations into allegations of corruption demonstrate to the Nepali people that no one is above the law.  We commend actions by the Government of Nepal to bring truth to light in accordance with rule of law.”

Between 2007 and 2018, the US has welcomed tens of thousands of Bhutanese refugees formerly residing in Nepal as part of our global commitment to support refugees. The program has since ended, and there were no significant concerns regarding fraudulent activity associated with that resettlement process, said the spokesperson. 

Of late, visiting US officials have been raising corruption eradication as a key agenda to strengthen democracy. Earlier in January, US under Secretary for Political Affairs Victoria Nuland talked with Nepali politicians about the need to continue fighting corruption.

 The Biden administration in 2021 unveiled the US Strategy on Countering Corruption. In June that year, Biden said that corruption threatens United States national security, economic equity, global anti-poverty and development efforts, and democracy itself. “But by effectively preventing and countering corruption and demonstrating the advances of transparent and accountable governance, we can secure a critical advantage for the United States and other democracies,” he added.  

In Nepal, three corruption scandals—fake refugee scandal, Lalita Niwas land grab and gold smuggling—are under investigation. On the fake refugee case, the CIB has already filed cases against more than one person including former home minister, Bal Krishna Khand, and CPN-UML senior leader Top Bahadur Rayamajhi.
The CIB has also reopened the file on Lalita Niwas land grab case in which two former prime ministers Madhav Kumar Nepal and Baburam Bhattarai have also been implicated. The CIB is also investigating the gold trafficking case from Kathmandu’s Tribhuvan International Airport in which the involvement of high profile business persons and politicians has been suspected.

The United States has returned 40 illegally exported wooden artifacts to Nepal.

The Embassy of Nepal in Washington DC said that it returned 40 wooden artifacts received from the Homeland Security Investigations (HSI) of the US Department of Homeland Security (DHS) to Nepal.

It is said that the Department of Archaeology of Nepal will receive the artifacts in Kathmandu on Saturday.

Those illegally exported artifacts of Nepal were confiscated in Hawaii by the United States Customs and Border Protection in August 2010.

The government of Nepal had officially requested the US government to return the artifacts to Nepal in 2011.

The Embassy of Nepal in Washington DC had received the artifacts on May 11, 2023.

"Four, out of 39 engraved and painted wooden panels and a carved wooden shrine, were randomly selected for display during the handover ceremony. The Embassy of Nepal had displayed these artifacts again during Nepal tourism promotion program organized at the Embassy on August 1," according to a press statement issued by the Embassy of Nepal.

The Embassy has thanked all the US government agencies and individuals in these efforts.

With this shipment, the Embassy has so far returned 47 artifacts of historical, cultural, and religious importance to Nepal since April 2022.

The price of rice, Nepal’s staple food, is escalating in the domestic market right after India announced a global ban on the export of all varieties of rice, save the Basmati. The move from New Delhi came after Russia announced its withdrawal from the Black Sea Grain Deal in the midst of the Ukraine war, straining a war-hit supply system and aggravating the global food crisis. 

Despite hints that the ban may not apply to Nepal and the government’s assurance that there’s enough stock to last three months after which a new harvest season will begin, panic buying has been going unabated and the traders have been making hay. 

In a very short span of time, traders have raised the prices of different varieties of rice by more than 16 percent in the domestic market.

“When I inquired about the price of a 25 kg rice sack some days ago, the shopkeeper said Rs 2,300. But when I visited the shop the next day, the price had already increased by Rs 200. The shopkeeper said the price would rise further as he was running out of stock. That’s why I bought two sacks of rice,” said Parbati Dahal, a resident of Naya Thimi.

Many more customers like Dahal are opting for panic buying, fearing the unavailability of rice in the market in the coming days. But the government officials say there is no reason to panic. 

“We have food grains for three months at least. The new paddy will be ready in October-November,” says Gajendra Kumar Thakur, director-general at the Department of Commerce, Supplies and Consumer Protection.

In response to increasing complaints from consumers about the price hike, government authorities have a readymade answer: “We have been monitoring the market daily.”

Thakur says it is difficult to immediately find out whether there is black marketeering going on, as people get their foodstuffs from wholesalers, distributors and retailers. 

“We have been collecting data from the market and analyzing them. The reported price hike is under investigation,” adds Thakur.

The department has requested consumers to lodge complaints against price gouging by calling at its two numbers: 5343939 and 5347992.  

India has imposed a ban on the export of non-Basmati rice across the globe despite objections from the international community. The export policy of non-Basmati white rice, semi milled or wholly milled rice, whether or not polished or glazed, is amended from “free to prohibited,” according to a notification from the Directorate General of Foreign Trade.

According to one official, discussions are underway with the Indian government to exempt Nepal from the ban list. 

The Indian rice ban has also affected the prices of Nepali rice. Dev Kumar Shrestha, who runs a rice mill at Lagankhel, Lalitpur, says as this is an off-season for rice production, it is usually normal for the prices to go up during this time. But he does admit that the hike rates have been unreasonable after the Indian ban of rice export.   

“Big traders who are in power and are making huge profits by causing an artificial crisis,” says Shrestha. “When they raise the price, we too have to buy at an increased rate, which has caused the price increase.”   

Shrestha says since India has not banned the export of Basmati rice, high quality rice including long grain, Basmati rice should be easily available. “There is an ample supply of low quality rice, only the middle quality rice varieties are hard to get. Still, there is a panic among consumers.”

Some shopkeepers have stopped ordering rice because they are finding it difficult to sell them due to the price hike. Fanindra Shrestha, a grocer from Buddhanagar, Kathmandu, is one of them. He says the customers who visit his shop return empty handed after hearing the new price list of the rice varieties.  

“I cannot convince them, so I thought it is best not to order more rice because my customers are not going to buy them,” says Fanindra.

When there is a price hike of any goods in the market, it affects the consumers and eventually the supply chain. Those with purchasing power can buy and hoard any amount of goods that are in short supply, whereas the poor consumers cannot afford them. 

Market experts warn this could create an imbalance in the demand and supply, upsetting the market.

Several traders and experts that ApEx spoke with suggest that the government needs to come up with a long-term solution to address the issue, as this is not the first time the country has experienced such a scenario. They say that the government should take the initiative to make Nepal self-reliant when it comes to essential food items including rice. 

“We must increase our domestic rice production,” says Shrestha, the rice mill owner from Lagankhel. “By doing so we will no longer be dependent on foreign countries for rice.”

Over the past few years, Nepal has witnessed a significant surge in the number of students opting to pursue higher education abroad, particularly in countries like the United States, Australia, and the United Kingdom, among other popular destinations. This article delves into the reasons behind this growing trend, analyzing the factors that drive Nepali students to seek educational opportunities overseas. By examining relevant statistics and facts, the aim is to shed light on the underlying motivations that have reshaped the higher education landscape in Nepal.

Quality of education

One of the primary factors driving this interest in studying abroad is the perceived higher quality of education offered by renowned international institutions. Many students believe that attending colleges overseas would provide them with a more comprehensive and globally recognized education, preparing them for the competitive global job market. According to research conducted by the Ministry of Education, approximately 65 percent of students seeking higher education abroad cite improved academic facilities and resources as their main motivation.

Specialized courses and opportunities

Another significant motivator is the lack of specialized courses offered in Nepal’s institutions. Many students have specific career goals and seek programs that are not available in their home country. Countries like the US and the UK are known for offering a wide range of courses that cater to diverse interests and career options. Subjects such as artificial intelligence, robotics, biotechnology, and environmental studies are more readily available in international universities.

Research opportunities and infrastructure

Opportunities for research and access to advanced infrastructure are additional drivers pushing students to pursue further education overseas. Foreign research institutes offer state-of-the-art facilities, well-equipped laboratories, and funding for research initiatives, which can significantly contribute to a student’s academic and professional growth.

Global exposure and cultural diversity

The prospect of global exposure and cultural diversity also plays a vital role in influencing students’ decisions to study abroad. Immersing themselves in different cultures and perspectives enhances their overall educational experience and fosters cross-cultural dialogue, tolerance, and adaptability. Surveys show that over 78 percent of Nepali students consider the chance to experience other cultures and environments as a critical factor in their decision-making process.

Visa policies and job opportunities

Favorable visa policies in countries like Australia, Canada, and New Zealand also attract Nepalese students looking for better job opportunities upon graduation. Many students view obtaining a foreign degree as a pathway to lucrative employment in their host country or even back in Nepal. Data from the Nepal Immigration Office indicates a steady increase in the number of student visas granted for these nations over the past decade.

Political and economic factors

Socioeconomic and political factors also come into play in Nepali students’ decision-making processes. Concerns about the insecurity of Nepal’s education system due to frequent strikes and disruptions have raised questions about educational quality and reliability. Moreover, the competitive nature of the domestic labor market and limited prospects for professional advancement have encouraged students to seek better opportunities abroad.

Language barriers, specifically English language proficiency, are also influencing factors. While English is one of Nepal’s official languages, the quality of English language education may not always meet international standards. Consequently, students often choose to take English language competency exams such as TOEFL and IELTS as admission requirements for overseas universities.

The increasing number of Nepali students seeking higher education abroad reflects a global trend where overseas education is becoming more accessible and attractive. This movement is driven by perceived higher academic standards, specialized course offerings, research opportunities, exposure to different cultures, and the potential for better job prospects. It is crucial for policymakers and education authorities to acknowledge these reasons and work towards improving educational quality and expanding opportunities within the country, in order to retain talent and contribute to national development.

Furthermore, to stay abreast of global advancements in various fields, the government should explore partnerships with international institutions and invest in research infrastructure. By addressing the issues that drive students overseas, Nepal can transform its education system into one that not only attracts students from other countries but also retains talented individuals from within the nation, ultimately contributing to the country’s growth and development.

The author works for an education consultancy firm

With the rising consumption of millet, stakeholders have highlighted the urgent need to boost its production in Nepal.

As part of efforts to raise awareness about millet farming, an event commemorating the 3rd International Millet Day was organized in Mandan Deupur-6 Municipality of Kavre in the joint coordination of the National Farmers Groups Federation Nepal, Anaj Nepal, Mandan Deupur Municipality, Food and Agriculture Organization, Care Nepal, and Milan Women Agriculture Group.

Navaraj Basnet, President of the federation, emphasized that millet is a crucial food crop for marginalized farmers, forming the basis of their livelihood. He urged the government to prioritize millet farming, promote awareness about climate-friendly farming practices, and educate the public about the health benefits and suitability of millet cultivation. Additionally, he stressed the importance of linking millet processing and entrepreneurship to agricultural education.

Similarly, Dr Ram Krishna Shrestha, Chief of Crop Development and Agricultural Biodiversity Conservation Center, shared that the government is actively promoting millet farming in 167 rural municipalities this year, an increase from the 133 municipalities covered last year. “The program includes various components, such as crop production, branding, marketing, and the protection of indigenous crops,” he added. Likewise, Dr Hari Bahadur KC, a joint secretary at the Department of Agriculture, informed that the government is taking measures to protect indigenous crops like millets. “We need a concerted effort from all stakeholders to increase millet production,” he added.

Also speaking on the occasion, Uddhav Adhikari, Chairman of Agriculture Campaign for Food, underscored the importance of prioritizing millet cultivation, stating that farmers across the country are giving up millet farming. “Now that people have realized the significance of this crop and its potential, the government needs to provide support to farmers to increase production,” he added.

Recognizing the global importance of millets, the United Nations General Assembly has declared 2023 as the International Year of Millets. The government has also designated this year as the Year of Millets, with the theme ‘Millet Crops for Food Nutrition, Security, Environment, and Rural Transformation’. Nepal is ranked 13th in the world for millet production, with 320,953 tons produced in 2020, according to data from the Food and Agriculture Organization. However, due to the surging domestic demand, Nepal has been importing a significant quantity of millet, amounting to Rs 732m in 2022/23, an increase from Rs 722m in 2021/22.

Compared to other South Asian countries, Nepal’s electoral process is considerably free and fair. However, there are many loopholes where the country needs to make urgent improvements to strengthen democracy.  

The Election Commission (EC) has come up with a draft of new law which proposes sweeping changes in the country’s election law to create a more inclusive and accountable electoral process. The draft law, prepared after comprehensive consultations with political parties, is currently being studied by the Ministry of Home Affairs. 

The changes proposed in the election laws were made based on various factors, including the orders from the Supreme Court, practices followed in other democratic countries, and lessons learned from Nepal’s own electoral history.

Constitutional expert Chandra Kanta Gyawali says the proposed law aims to address numerous issues related to free and fair elections, such as allowing voting rights to Nepali citizens living abroad, imposing a spending ceiling on candidates and taking measures to minimize the chances of vote-rigging.  The law covers all types of election, from presidential to local level, and if endorsed, will further improve and democratize the election process.  

Key provisions 

One of the proposed changes is the implementation of an online-based voter registration system. This system will modernize the way citizens register to vote, making it easier and more efficient for everyone to participate in the democratic process, say EC officials.

To ensure that Nepalis living abroad too have a say in the nation's governance, the EC has proposed including them on the voter list and allowing them to cast their votes under the Proportional Representation (PR) system. 

The election governing body has also proposed a provision to prohibit candidates who have lost in federal, provincial, or local elections from running in other elections, except in the case of their own constituencies or local units. This measure is aimed at preventing candidates from hopping from one constituency to another.

To ensure a diverse representation of voices, the EC has proposed restricting candidates, who had been elected twice under the PR system, from running again through the same route. To ensure women representation, the EC has proposed making at least 33 percent women candidates mandatory under the first-past-the-post (FPTP) voting system. 

The EC plans to boost women’s participation even further in local units. To this end, the election body has proposed a provision that requires parties to field women in the posts of either mayor/chairperson or deputy mayor/vice chairpersons in local units. If parties are filing candidacy in one of these two posts, it has to be women. The EC has also proposed that 33 percent of the candidates for the post of ward chairpersons in local units has to be women. 

Another key proposition made by the EC in the election law is  the ‘None of the Above’ (NOTA) option on the ballot paper. This option would give voters the chance to express their dissatisfaction if they feel that none of the candidates are suitable to represent them. 

In 2014, the Supreme Court had directed the government to allow voters to cast negative votes by including NOTA option on the ballot paper. But the directive was never implemented at the consensus of major political parties.  Another crucial proposal to reform the country’s election process proposed is fixing the election dates and campaigning period to ensure a more structured and organized electoral process. 

Similarly, the poll body has recommended setting the candidate eligibility criteria directly in the law itself. This proposal aims to establish clear standards for individuals aspiring to run for public office. The EC has also proposed prohibiting candidates from contesting elections under a different party's banner before formally resigning from their current party. This provision intends to discourage the practice of using other political parties' election symbols for personal gain.

To expedite the resolution of disputes regarding the eligibility of elected candidates, the EC has suggested that the concerned courts must render a final decision within six months from the day the case is filed. Furthermore, the EC has proposed a provision mandating candidates to declare their assets held in their name or in the name of their family members during the nomination process. 

Recognizing the importance of diverse representation, the EC has recommended providing a 50 percent discount on the election deposit amount for candidates belonging to Dalit, women, underprivileged, sexual and gender minorities, and people with disabilities. 

Likewise, the EC has also suggested introducing advance voting under the PR system for specific groups, such as government staffers assigned on poll duty, security personnel, election observers, and individuals preparing for foreign visits.  The EC has said that these changes would be incorporated into the ‘Bill to Amend and Unify Existing Election Laws’ and forwarded to the Cabinet through the Ministry of Home Affairs.

EC hopeful of parliamentary endorsement 

Chief Election Commissioner Dinesh Kumar Thapaliya said the commission is positive that the lawmakers will endorse the bill aimed at improving the country’s electoral system. He added that in consultations held with the chief whips of all political parties, the EC officials were assured that the proposed law will get parliamentary endorsement.  But Ila Sharma, former EC commissioner, said that there was no guarantee that Parliament would accept all the provisions suggested by the EC. As electoral reform is an ongoing process, all issues may not be incorporated at once, she added. Sharma suggested that all sections of society should exert pressure on the political parties and the government to reform the electoral process.

Key suggestions

• NOTA ballot paper 
• Ensuring diverse representation 
• Declaration of assets by candidates 
• 33 representation of women at all levels 
• Voting rights for Nepali living abroad 
• Online-based voter registration 
• Fixing the date of election by EC 

Competitiveness and competence of Nepal’s IT services industry have grown tremendously in the past few years with the country exporting IT services worth $515.4m in 2022.

A new report by Institute for Integrated Development Studies (IIDS) on the Nepali IT industry shows IIT service exports accounted for 1.4 percent of the country’s GDP and 5.5 percent of the foreign exchange reserves.

The report shows Nepal is gradually making strides in IT service exports, especially through an increment in software development and digital services through offshore outsourcing.

The report titled ‘Unleashing IT: Advancing Nepal’s Digital Economy’ says IT services exports witnessed a whopping 64.2 percent growth in 2022. “Both IT companies and freelancers experienced substantial growth, with IT companies recording an 80.5 percent increase in service exports and freelancers achieving a growth of 55.2 percent,” says the report.

The report, the first of its kind to map the Nepali IT services export industry throws many interesting facts. There is significant involvement of youth in the IT sector, with 83.5 percent of freelancers working in the IT sector falling within the age bracket of 20-29.

Among the IT companies operating in Nepal, 75.3 percent are solely registered within the country, while 24.7 percent are registered both in Nepal and abroad. The primary areas of export services provided by Nepali IT companies include programming, coding, design, software development, and testing. A significant majority (78 percent) of the companies receive project-based work, although they express a desire for long-term assignments despite currently taking on monthly or hourly task-based work. Around 58.3 percent of the companies frequently receive export services work, with approximately 28.4 percent experiencing no operational issues. However, 12.3 percent of the companies only receive occasional assignments.

In terms of clients, 77.8 percent of IT companies receive assignments from the United States, followed by Europe, the United Kingdom, and Australia. However, there has been a shift in the trend in recent times, with more companies working with countries in Asia and the Middle East, such as the United Arab Emirates, Bahrain, Bangladesh, Bhutan, Indonesia, Japan, the Republic of Korea, Malaysia, Singapore, and Thailand.

Approximately 44.4 percent of the companies have been co-founded as private limited companies, while others operate in partnerships with international companies or as sole proprietorships in certain cases. Among the partnerships, 87.5 percent exclusively involve Nepali partners, 3.1 percent foreign partners, 6.3 percent both Nepali and foreign partners, and 3.1 percent involve both Nepali and Non-Resident Nepalis (NRN) partners.

“The surge in IT services exports has contributed to the economy and created employment opportunities for IT professionals,” says the report. There are over 106 IT export services companies and 14,728 IT freelancers in software development and technology and 51,781 Information Technology Enabled Services  (ITeS) freelancers engaged in exporting IT services through various digital platforms.

With growing prospects for exports, there has been a promising growth trend in both revenue and investment in the IT industry.  The revenue growth signifies that a high number of companies are successfully offering IT services to international clients, resulting in a higher influx of foreign exchange into the country.

On average, the yearly salary for IT workers in Nepal is $2,810 (Rs 365,300) at the entry-level, $6,395 (Rs 831,350) for the mid-level, and $15,322 (Rs 19,91,860) for the senior-level. Currently, the estimated number of jobs generated by IT service export companies is 7,228 and there are 66,509 online freelancers.

The report shows a gender divide in the number of hired employees. There is a stark gender disparity in terms of hiring regular and full-time staff, favoring men over women. As per the report, 84 percent of the employees (both full-time managerial and technical staff) are men while the remaining 16 percent are women.

According to Dr Amrita Sharma who led the study, reliable supply of electricity and internet connection are major challenges in Nepal. “With the growing demand for IT services, strengthening IT infrastructure should be the keen focus,” said Sharma.

The number of data centers in the country must be increased to secure data storage and management as well as enable remote access to data, disaster recovery, and energy efficiency.

According to the report, in order to boost the growth of Nepal’s IT sector, it is essential to provide the industry with adequate financial support across three major areas—research and development, investment support to start-ups and scaling up successful companies, and the creation of efficient payment systems. The lack of funding for early-stage financing and company incubation has hindered the growth of IT startups. “As many startups are struggling, early-stage funding is crucial,” said Sharma.

In Nepal, the IT sector, according to the report, presents an opportunity for contributing to steady economic growth in the digital era. “Unlike such sectors as tourism, hydropower, and agriculture, which could face challenges due to geographical limitations and competition from neighboring manufacturing hubs, IT service exports can thrive with fewer challenges,” says the report. 

Political instability, widespread corruption, cumbersome bureaucracy, and inconsistent implementation of laws have discouraged potential investment in Nepal, said a new US report.

While government authorities including the Prime Minister have been talking about simplifying the foreign direct investment (FDI) regime, a new report by the US Department of State has raised serious questions about the investment climate environment in Nepal.

The 2023 Investment Climate Statements released by the State Department says despite considerable potential—particularly in the energy, tourism, information, and communication technology (ICT), infrastructure, and agriculture sectors—political instability, widespread corruption, cumbersome bureaucracy, and inconsistent implementation of laws and regulations have deterred potential investment in Nepal.

The report has also questioned the government of Nepal’s commitment to implement the policies into meaningful practices. “While the Government of Nepal (GoN) publicly states its keenness to attract foreign investment, this has yet to translate into meaningful practices,” says the report.

The US government report has identified Nepal as an investment destination for those who're willing to accept the inherent risks and unpredictability of doing business in the country and who possess the resilience to invest with a long-term mindset.

While the report lauds the government’s efforts to bring some investment-friendly laws and regulations in recent years, it says significant barriers to investment still remain.

Corruption, laws limiting the operations of foreign banks, lingering challenges in the repatriation of profits, and controlled currency exchange facilities have undermined foreign investment in the country. The prohibition of FDI in certain sectors as well as a minimum foreign investment threshold of Rs 20m ($154,000), and the government’s monopoly over certain sectors of the economy (such as electricity transmission and petroleum distribution) are other factors that have dented foreign investment potential in Nepal.

Political uncertainty is a continuing challenge for foreign (as well as domestic) investors, according to the report. “Nepal’s ruling parties have spent much of their energy over the last years on internal political power struggles instead of governance,” says the report.

The US report has said what economists and business community members in Nepal have been saying for years. According to them, the political environment is one of the factors that affect the overall investment climate including FDI.

For a long time, Nepal has remained among the countries that receive the lowest FDI in the world. Despite many talks on attracting foreign investments in the country, the country has failed to attract foreign investors as targeted. At less than one percent of GDP, Nepal’s current levels of FDI are the lowest among similar economies.

FDI pledges in the country dropped by 22.2 percent in FY 2022/23. FDI commitments totaled Rs 38.457bn in FY 2022/23 compared to Rs 49.431bn in FY 2021/22.

The other factor deterring foreign investors from putting money in Nepal, according to the report, is a lack of understanding of international business standards and practices among the political and bureaucratic class. “A legal and regulatory regime that is not quite aligned with international practices also impedes, hinder, and frustrate foreign investors,” says the report. “Elements of Nepal’s tax regime, in particular, may be inconsistent with international practices and could trip up foreign investors.”

Immigration laws and visa policies for foreign workers are cumbersome.  Inefficient government bureaucratic processes, a high rate of turnover among civil servants, and corruption exacerbate the difficulties for foreigners seeking to work in Nepal.

While the US still features among the top 10 foreign investors in Nepal, the US FDI in Nepal, compared to other countries such as India, and China, is less, accounting for about 2.9 percent of the total FDI stock.  

Economists say it is necessary to improve the existing policy and structural system to bring more foreign investment into Nepal. According to them, while the immediate reason for the decline in FDI might be the global recession and domestic political situation, there are structural and procedural obstacles in Nepal that discourage investors.

Despite introducing a one-door system in the Investment Board Nepal and Industry Department, FDI has not come in as expected. “It has failed to facilitate FDI so far because it has failed to become a complete one-stop service center,” the economist said.

In the second week of March, Prime Minister Pushpa Kamal Dahal had said that the government is seriously working on further simplifying the procedures, fully operationalizing the one-stop service, and developing necessary rules for the automatic approval of foreign direct investments (FDIs) applications.

Of late, the government has eased procedures related to FDI. The Department of Industry (DoI), the government agency responsible for providing services to foreign investors, has developed a mechanism to approve foreign direct investments (FDIs) through the online channel. The mechanism that allows the department to approve FDI worth Rs 100m automatically has come into implementation from Jestha 1.

Citing the complaints about the higher threshold for FDI, the government in November last year lowered the threshold to Rs 20m from Rs 50m. 

Every year, the US State Department comes up with its annual reports on different thematic issues of the countries with which it has diplomatic relations. Such annual reports provide insights into how the US views other countries. 

In this article, we present the major highlights of the key US reports such as 2023 Investment Climate Statements, Trafficking in Person’s Report, International Religious Freedom Reports and Country Reports on Human Rights Practices.

This week, the US State Department published its Investment Climate Statements. According to the report, hydropower, agriculture, tourism, ICT sector and infrastructure have significant commercial potential for investors. Nepal has an estimated 40,000 megawatts of commercially-viable hydropower electricity generation potential, which could become a major source of income through electricity exports, the report says.

The report recognizes that Nepal has established some investment-friendly laws and regulations in recent years, but significant barriers to investment remain. One of them is corruption which is impeding the investment climate in Nepal. The report states that political uncertainty is a continuing challenge for foreign as well as domestic investors.

Nepal’s ruling parties have spent much of their energy over the last years on internal political power struggles instead of governance, the report says.

The report further states that there is a lack of understanding of international business standards and practices among the political and bureaucratic class, and a legal and regulatory regime that is not quite aligned with international practices also impede, hinder and frustrate foreign investors. 

The Investment Climate Statements also raises questions about the role of trade unions. “Trade unions, each typically affiliated with parties or even factions within a political party, and unpredictable general strikes can create business risks, although this problem, once common, has diminished in recent years.”

The US report also questions the role of the Commission for Investigation of Abuse of Authority (CIAA), the national anti-corruption body. It says: “The 2015 constitution empowers the CIAA to conduct investigation of any abuse of authority committed through corruption by any persons holding public office. In practice, according to the report, the CIAA arrests and investigations tend to focus on lower-level government bureaucrats.”

According to the 2022 Corruption Perception Index released by Transparency International (TI), Nepal ranked 110th among 180 countries, placing it in the range of “highly corrupt” countries. In Jan 2018, local media reported that the CIAA is drafting a bill to replace the Prevention of Corruption Act, with the goal of making the new law compatible with the UN Convention against Corruption that Nepal signed in 2011. But the private sector is opposing some of the provisions of the draft. Nepal is not a member of the OECD Anti-Bribery Convention.

While anti-corruption laws extend to family members of officials and to political parties, the report says, there are no laws and regulations that are specifically designed to counter conflict-of-interest in awarding contracts of government procurements.  

A few months back, the US came up with its International Religious Freedom Report which raised issues that Christian groups continued to report difficulties operating as non-governmental organizations and multiple religiously affiliated organizations reported increased challenges renewing or registering their organizations. Christian groups said they continued to face difficulties buying or using land for burials, especially within the Kathmandu Valley, the report mentions.

It also speaks about the growing influence of India’s Bharatiya Janata Party in Nepal. The report cited Nepali civil society leaders as saying that the influence from India’s ruling party, the Hindu nationalist BJP, and other Hindu groups in India continue to pressure politicians in Nepal, particularly, the pro-Hindu, Rastriya Prajatantra Party, to support reversion to the Hindu state.

The report drew criticisms for its baseless accusation that BJP provided money to Nepali leaders for the Hindu cause. There were reports that the government sought clarification from the US side on the issue but it was never made public.

The US also has significant concerns over the religious freedom of the Tibetan community in Nepal, although the report does mention that there has been some improvement when it comes to the rights of the Tibetan community. The report cites Tibetan community leaders highlighting an increased ability to celebrate some religious and cultural holidays without police interference.

In June this year, the US came up with the Trafficking in Person’s Report which states that Nepal does not fully meet the minimum standards for the elimination of trafficking, but is making significant efforts to do so.

In its Country Reports on Terrorism, the US has raised questions regarding the security situation in Nepal’s international airport as well as the open border that it shares with India. A more significant threat is non-Nepali international terrorist groups using Nepal as a transit/staging point for soft targets, the report says. Because of the open border with India and insufficient security protocols at the country’s sole functioning international airport in Kathmandu, the report says, it could be used as a transit or staging point for international terrorists.

In its Country Reports on Human Rights Practices, the US has provided its perspective on various aspects of human rights in Nepal. On transitional justice, the report says the government and judiciary did not significantly address most conflict-era human rights and humanitarian law abuses committed by the Nepal Army, Armed Police Force, police and Maoists. The country’s two transitional justice mechanisms—Commission of Enforced Disappeared Persons and Truth and Reconciliation Commission—are not fully independent.

Centre for Social Inclusion and Federalism (CESIF) organized a national seminar to launch its publication – China’s Emergence in Nepal’s Infrastructure: Status, Issues and Challenges and shared key findings of the report for wider civic engagement and discussion.

The book, authored by noted author Amish Raj Mulmi, senior journalist, Anil Giri, co-founder of The Araniko Project Raunab Singh Khatri, CESIF’s Research and Program Coordinator Arpan Gelal and CESIF’s researcher Milan Acharya was launched at the Square Hotel today, reads a statement issued by the CESIF.

The book launch was followed by the discussion on the theme, ‘China’s Emergence in Nepal’s Infrastructure: Status, Issues and Challenges.’

The seminar brought together distinguished panelists—former Economic Development advisor to the Prime Minister of Nepal and (Ret.) Secretary of the Government of Nepal Lal Shanker Ghimire, former Urban Secretary of the Government of Nepal Deependra Nath Sharma, Director of the Center for Governance and Academic Affairs at IIDS Dr Sucheta Pyakuryal, former senior External Affairs Officer at the World Bank, Rajib Upadhya.

The panel was moderated by Research Advisor at CESIF Ajaya Bhadra Khanal.

The discussion brought into account the nexus of corruption that Chinese infrastructure projects had built, their inclination towards party-to-party relations, especially the left political forces, and the need for Nepal’s political and bureaucratic front to work together upon its negotiation techniques, the statement reads.

Vijay Kant Karna, Executive Chair at CESIF, began the seminar by extending his welcome remarks.

“Realizing the lack of comprehensive research on China's involvement in Nepal's infrastructure sector, CESIF conducted research on the said topic, the report of which we are launching today. The report is expected to provide insights into the patterns of Chinese engagement in Nepal's infrastructure. The report also discusses the nexus between the local agents of Chinese contractors and Nepali decision makers,” said Karna.

Author Amish Raj Mulmi presented key findings and analysis of the book.

Mulmi discussed the mechanisms of the Chinese infrastructure engagement in Nepal, and then provided a succinct comparison of the infrastructural investment by China, India and Japan in Nepal, in which he commended Japan’s debt relief practices.

Lal Shanker Ghimire began the discussion by talking about how all aid comes with strings attached.

He reflected that infrastructural funding is no different and must be viewed from that same lens.

Ghimire further said that a lack of proper negotiation has led to some of the unfair deals. This lack of negotiation stems from inferiority complex and lower bargaining capacity of Nepali bureaucrats.

Similarly, Dr Sucheta Pyakuryal mentioned that Nepal is not in a scary position given the status of economic indicators.

However, the political dimension is a thing to reflect upon.

Nepal, as a country, is weak, and thus, commercial projects tend to make a weak state weaker. Therefore, we need to look upon the knots and bolts of our government while dealing with the funded infrastructure projects,’ said Dr Pyakuryal, the statement further reads.

Likewise, Dr Rajib Upadyay provided his opinion on how resources are finite now.

‘The era of cheap money is now over. In particular because of three reasons: firstly, the West is heading towards recession. Secondly, rising global tensions has brought geopolitics into the economic discourse. Thirdly, the defense budget is increasing amongst NATO countries,’ he reflected.

Deependra Nath Sharma, reflected upon the lack of a definite institution to oversee infrastructural governance.

He said that the national planning commission needs to involve itself more. Especially, when projects do not complete in the intended period, there is blame game, and cost overrun, among others.

Sharma opined, ‘There is also a Public Procurement Monitoring office, but is barely monitoring anything. It provides suggestions on dispute, but doesn’t monitor, per se.’ Thus, there is clearly an institutional gap.

Moderator Ajaya Bhadra Khanal summarized the discussion by reflecting that there exists a plethora of aspects of infrastructural development and that Nepal needs to prioritize its national interest while negotiating for infrastructural development deals.

The seminar ended with vibrant participation from audiences for the question-and-answer segment. The event hosted noted diplomats, journalists, former bureaucrats, academicians, former military officials, and researchers.

Centre for Social Inclusion and Federalism (CESIF) Nepal is a not-for- profit, autonomous and independent private research institution serving the public interest, with significant independence from any interest group. Our mission is to help the government create a democratic, secure and just society by making informed and transparent decisions about policies and practices.

Along with government-to-government relationships, the Communist Party of China and India’s ruling Bharatiya Janata Party are competing to cultivate ties with Nepal’s political parties. Keeping their ideological positions at a bay, they are reaching out to all major parties in Nepal.  

High-level delegations from both the CPC and BJP are visiting Kathmandu, while leaders from various political parties in Nepal are also flying to China and India, with more party-to-party level exchange of visits on the cards. 

Political analysts say both New Delhi and Beijing are making a departure from their traditional policy of backing only specific parties and leaders and building ties with all political forces in Nepal, considering the political instability in the country.

The spectacular emergence of the recently formed Rastriya Swatantra Party and the resurgence of Rastriya Prajatantra Party—both of which are challenging the three traditional parties, Nepali Congress, CPN-UML and CPN (Maoist Center)—have also forced China and India to recalibrate their approach. 

The CPC has realized that by fostering and nurturing Nepal’s leftist forces is not going to secure China’s interests.  The BJP, which has been in power in India since a decade, also wants to achieve its agendas including Hindutva ideology in Nepal by roping in all political parties. For them, a favorable government in Kathmandu is not enough; they want the overall political environment of Nepal to be on their side.  

Political analyst Lokraj Baral says both the BJP and CPC are adopting “a realistic approach” in building ties with Nepal’s political parties. 

“There is no ideological foundation in such relationships because both sides want to appease each other to enhance their power.” 

Baral says the CPC is still more partial toward Nepali communist parties, even though it has increased its engagements with other political forces.

This week, Yuan Jiajun, member of the political bureau of CPC visited Nepal at the invitation of the ruling Maoist Center. During his stay, Jiajun met leaders from across the political spectrum. As Prime Minister Pushpa Kamal Dahal was out of the country, the Chinese leader held a virtual meeting with him. 

While the Chinese leader was in Kathmandu, a five-member delegation led by Phampha Bhushal of the Maoist party flew to India at the invitation of the BJP. The ties between the BJP and Maoist are only just evolving. Sources say lately, India's ruling party has also been approaching the UML.  

As for the Nepali Congress, it has always been close to India. Last year, the BJP had invited a group of leaders from the Congress party, which was led by Prakash Sharan Mahat. Former prime minister and Congress president, Sher Bahadur Deuba, had also visited the BJP headquarters in India before holding bilateral talks with Indian Prime Minister Narendra Modi. 

The engagement between China’s CPC and Nepal’s Maoist party has been there for a long time. During the insurgency period, Beijing largely supported Nepal’s monarchy, but it took no time to reach out to the Maoists, led by Prime Minister Dahal, after the party came to power following the fall of monarchy. Ideological proximity between the CPC and Maoist party brought them together. In the past six months, at least two Maoist delegations including one led by former speaker Agni Sapkota have visited China.  

Since the Maoist party is in power right now, Prime Minister Dahal is making utmost effort to strike a balance between India and China. He needs the support of both the CPC and BJP to stay in power.

But scores of Maoist leaders believe that they should step up engagement with China to reap the benefit from its economic development.

They are of the view that Nepal should immediately implement the Belt and Road Initiative (BRI) and other agreements reached between the two countries. Through cooperation with Nepal’s political parties, China wants to replicate its development model in Nepal, not export its political ideology, say some experts. 

Due to increased interactions, Nepali leaders too have started appreciating China’s development and its model.

During his talks with Nepali leaders, Chinese leader Jiajun said that China is willing to deepen practical cooperation under the BRI with Nepal, and deeply and solidly promote the strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity between two countries.

China’s Xinhua news agency reported that the CPC is willing to strengthen exchanges and mutual learning with Nepali political parties to boost the development of China-Nepal relations. Jiajun told Nepali leaders that China is willing to enhance cooperation and exchanges with Nepal in agriculture, poverty reduction and education to enrich the relationship between the two countries through subnational exchanges.

Tanka Karki, former Nepali ambassador to China, says it is normal to build party-to-party relationships and there is nothing harmful about it. “Both countries want to enhance people-to-people relationship and political parties remain a key instrument of it.”

The relationship between Nepal’s Maoist party and the BJP is a new one. In July last year, as a party chair, Dahal visited the BJP headquarters in New Delhi and held talks with BJP President JP Nadda. After one year, BJP hosted the Maoists delegation in its party office for what they call to strengthen party-to-party relationship.

Perhaps, it is the result of cordial ties between the BJP and Nepal’s political parties, many Nepali politicians including Prime Minister Dahal are talking about protecting and promoting Hindu religion and culture.  

Not only India and China, the US, the UK and the EU countries are also trying to enhance their influence among Nepal’s political parties through bilateral exchanges and visits. They are mainly close with parliamentarians to influence the law-making process in Nepal.  

Political analyst Chandra Dev Bhatta says India and China’s increased engagements between the political parties of Nepal, can certainly be helpful to enhance relations at the political level which can also percolate at the peoples level.

“This is also particularly important when diametrically opposite political parties in terms of ideology are in power on both sides— BJP in India and Maoist Centre in Nepal. It will help resolve contentious issues between the two countries,” he says. “But if such engagements are done merely for other interests either to stay in power or to create a comfortable regime, they could backfire and damage the relations.”

A grant agreement of more than Rs 10.5 billion has been signed between Nepal and the European Union (EU) for two different programs.

At a program organized at the Finance Ministry, Singha Durbar, on Friday, two separate financing agreements - a grant agreement of 50 million pound sterling (equivalent to Rs. 7.38 billion) for 'Quality Education for All' to support the School Education Sector Plan - SESP, and a grant agreement of 22 million pound sterling (equivalent to Rs. 3.25 billion) for the 'Local Adaptation to Climate Change' initiative - were signed.

'Quality Education for All' will support the implementation of the government's School Education Sector Plan in a sector-wide approach (SWAp) supported by eight development partners, including the EU. The overall objective of this support is to contribute to a well-educated and skilled society in Nepal which is able to play an active role in the social and economic development of the country.

On the occasion, Finance Secretary Arjun Prasad Pokharel said, "l am hopeful that the support of SESP with the help in increasing equitable access and improving the quality of education, which are crucial for human capital development."

"Nepal is making sincere efforts to balance the development and climate action. I appreciate the support of the EU to plan and develop measures for Disaster Risk Reduction and to focus on increased human and financial capacities in order to enable the selected local levels and communities to manage their natural resources in regards to adaptation to climate change. I would like to thank the European Union for its continued support in the socio-economic development endeavors of Nepal", stated Pokharel.

Similarly, EU Commissioner for international Partnerships, Jutta Urpilainen said, "The European Union is proud to continue our 20 year support to Nepal in education. Supporting quality education is one of our core commitments in our cooperation."

 "We are heartened by the government's commitment to support quality education and are happy to be a close partner", stated EU Ambassador to Nepal, Nona Deprez.

The European Union and Finland, as team Europe, will continue to work with local and provincial governments in Sudurpaschim and Karnali so they are empowered to make the most of their natural resources sustainable." said Nona Deprez, EU Ambassador to Nepal.

'Local Adaptation to Climate Change' is initiated with an overall objective to improve the sustainability and conservation of natural resources to notably increase their climate resilience in Sudurpaschim and Karnali provinces, reads a press release issued by the Finance Ministry.