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At the ongoing 13th World Trade Organization (WTO) Ministe- rial Conference, representa tives from the Least Developed Countries(LDC) are demanding an increased role of the global trade body for their smooth and sustainable transition.

Since the 12th conference that took place in Geneva in 2022, there has been some notable progress when it comes to addressing the demands of least developed countries. LDC rep- resentatives expect that the current meeting will deliver something more substantial.

The draft of the Abu Dhabi ministerial declaration that is currently under discussion states: “Recalling that, at our Twelfth session, we recognized the role that certain measures in the WTO can play to facilitate the smooth and sustainable transition for members after their graduation from LDC category.”

In this regard, the General Coun- cil meeting in 2023 took a vital deci- sion which has been welcomed by the draft text of 13 conferences. The decision of General Council states: “To encourage those Members that graduate or remove countries from unilateral tariff or duty-free and quota free (DFQF) preference programmes reserved for least developed countries (LDCs) based on their being graduated from the UN list of LDCs, to provide a smooth and sustainable transition period for withdrawal of such preferences after the entry into force of a decision of the UN General Assembly to graduate a country from the LDC category.”

The draft text of the 13th conference further states that the General Council recognizes the particular vulnerability and special needs of the LDC, and that their interests should be given due priority for them to secure meaningful integration into the multilateral trading system.

Nepal which meets the two out of three criteria is all set to graduate in 2026. Nepal meets the criteria for human assets index and economic vulnerability index, but it is yet to meet the gross national per capita. Officials say Nepal’s graduation preparations are not satisfactory and that its economy could face the risks after the graduation. 

Although Nepal has been continuously asking the international community to continue duty-free and quota-free preferences even after the graduation, there has not been any notable progress to strengthen the trade capacity of the country.

“Many countries which are graduating are coming up with specific proposals to improve in certain areas, and we are providing support to them. But Nepal has not come up with any proposal for us to support,” said an official requesting anonymity.  

In this scenario, Nepal can also request the United Nations to provide additional years to make the necessary preparations. For instance, the deadline could be postponed for 2029 instead of 2026, but Nepal is apparently sticking to the 2026 deadline.

Nepal’s economy suffered from the 2015 earthquake and the Covid-19 pandemic. According to the figure provided by the WTO secretariat, Nepal’s merchandise export averaged $835m during 2011-2019. With the onset of the Covid-19, they decreased from $968m in 2019 to $856 in 2020, below 2011.  Commercial services exports of Nepal almost doubled from $775m in 2011 to $1.5bn in 2019, but decreased to $830m in 2020, mainly due to a collapse of travel services induced by the pandemic.

The LDCs are accorded special treatment by the international community, mainly in areas such as trade and development cooperation, which is broadly known as “international support measures”. Trade is one of the key areas where LDCs enjoy exclusive preferences, both in the context of market access as well as in the implementation of WTO rules and disciplines. 

Graduation from the LDC category will eventually result in the loss of this special treatment, although the degree to which this will impact individual countries graduating from the LDC category differs. Nepal is asking developed countries to continue the preferential facilities even after the graduation, but this is not sufficient. Nepal has to make a comprehensive strategy for LDC graduation. 

Nepal’s trade deficit is widening. Nepal’s top markets are India, China, the EU, the US, the UK, Japan, and Canada. Nepal has bilateral agreements with India and the US regarding duty-free and quota free market access. 

A report prepared by South Asia Watch on Trade, Economics and Environment in 2022 states that about two thirds of Nepal’s exports are absorbed by India, and preferential market access there is built into a bilateral trade treaty and is not tied to LDC status. 

However, the report says, Nepal’s exports will face tariff increases in other major and potential destinations that offer LDC-specific tariff preferences.  

“While the EU, the UK, and Turkey provide a transition period of three years after graduation, Nepal will face new tariff regimes in other preference-granting countries post-graduation, according to the report,” according to the report. 

It further states: “For some products, the next-best tariff regime offers the same tariffs as the LDC-specific tariff regime, while for others the new tariffs will be distinctly higher. We find that exporters, in general, are not aware of the likely tariff changes.” 

The Nepali private sector is worried about the possible increase in tariffs and fear a severe impact given that Nepal's cost of production is already much higher than that of neighboring and other competing countries. For instance, the cost of production in the apparel sector is about 26 percent higher than that of neighboring countries, as per the Garment Association of Nepal. 

Experts suggest that either Nepal should seek the extension of the deadline or make a comprehensive strategy to mitigate the negative effects of the graduation. Under the Agreement on South Asian Free Trade Area (SAFTA), Nepal will face a significant increase in tariffs for its top two current exports—refined soyabean oil and palm oil. It exports these products to India through the SAFTA route, says the SAWTEE report. 

The report suggests that Nepal must use international/multilateral forums to pursue its post-graduation interests, including continuation of the use of LDC-specific provisions for a specific period, particularly regarding the provisions related to preferential market access, use of export subsidies and the flexible implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights.

According to the Kirat legend, the black soybean was the first crop cultivated by the people in Nepal. To avoid monotony, they created diverse ways to enjoy it, including raw, boiled, fried, crushed, and even fermented, giving birth to the iconic ‘kinema’.

Agricultural scientist and former principal director of agriculture, Sikkim, Jash Raj Subba mentions in his book ‘History, Culture, and Customs of Sikkim’ that according to the Kirat legend (Mundhum – an oral tradition of the Limbu), the black soybean was the first crop domesticated and cultivated by the Kiratas in this part of the country. The lone cultivated crop was thus consumed in various ways to avoid monotonous eating. They ate it raw, boiled with pods, dry frying, crushing, and fermenting, including the famous kinema.

This means the oldest Nepali fermented food is kinema. Crafting kinema is an age-old tradition passed down through generations. Dried soybeans are first husked, soaked overnight, and then boiled. The boiled soybeans are then smashed and pounded in a mortar and pestle (okhali) and then placed on the Newara leaves (Ficus roxburgh II) and put in a basket to activate microbial activity. After fermentation for a day or two with a mix of microbes and yeasts, particularly Bacillus subtilis, the result is a stringy-sticky mass infused with rich umami and meaty flavors.

Kinema is a food that you either love or love to hate. Many consider kinema smelly and don’t eat it, but some people even pay a higher price to get it. As a traveling research and development chef, I once encountered Natto, a traditional Japanese food made from fermented whole soybeans. But Natto and Kinema are not the same, although they are both fermented soybean products. 

Natto is a traditional Japanese food made from soybeans fermented with Bacillus subtilis var. natto bacteria. It has a characteristic strong smell, distinctive flavor, and a sticky texture due to the fermentation process. Kinema, conversely, is a fermented soybean product from Nepal, particularly popular among the Gurung ethnic group. It’s made by fermenting cooked soybeans with the fungus Rhizopus oligosporus. Kinema has a softer texture compared to natto and has a slightly sweet, sour taste.

While both natto and kinema are fermented soybean products, they originate from different cultures and use different fermentation agents, resulting in distinct flavors, textures, and culinary uses.

Fermented soybeans are indeed present in various cuisines around the world, each with its unique methods of preparation and flavors. Here are a few examples:

Tempeh (Indonesian cuisine): Tempeh is a traditional Indonesian fermented soybean product. It is made by fermenting cooked soybeans with a fungus called Rhizopus oligosporus. Tempeh has a firm texture and a nutty flavor. It’s commonly used in Indonesian cuisine as a protein source and can be fried, grilled, or used in various dishes.

Doenjang (Korean cuisine): Doenjang is a fermented soybean paste used in Korean cuisine. It’s made by fermenting soybeans with salt and a fermentation culture called meju. Doenjang has a savory, umami-rich flavor and is often used as a base for soups, stews, and sauces in Korean cooking.

Miso (Japanese cuisine): Miso is another fermented soybean paste used in Japanese cuisine. It’s made by fermenting soybeans with salt and a koji culture (Aspergillus oryzae). Miso comes in various colors and flavors, ranging from sweet to salty to savory, depending on the ingredients and fermentation time. It’s commonly used to make miso soup, dressings, marinades, and sauces in Japanese cooking.

Chao (Vietnamese cuisine): Chao is a fermented soybean paste used in Vietnamese cuisine. It’s made by fermenting cooked soybeans with salt and a fermentation culture. Chao has a salty, savory flavor and is often used as a condiment or seasoning in Vietnamese dishes.

These are just a few examples of fermented soybean products in different cuisines worldwide. Fermented soybeans are valued not only for their unique flavors but also for their nutritional benefits and versatility in cooking.

Similar to Japan’s natto, kinema is versatile. It can be sun-dried or incorporated into flavorful curries, with variations in preparation reflecting regional nuances. Despite its cultural significance, the tradition of making kinema faces challenges due to fewer individuals inheriting the knowledge.

To preserve this tradition, efforts are needed to document traditional methods, foster knowledge exchange, and raise awareness. Without such efforts, there’s a risk of losing this culinary heritage, impacting Nepali and Kirat cultural diversity.

The story of kinema is not just about a fermented soybean dish. It’s a tale of cultural heritage at risk of fading away. With concerted efforts, we can ensure that the flavors, traditions, and stories of Nepali cuisine remain intact for future generations to appreciate and cherish. 

The author is a UK-based R&D chef

Nepal has emphasized the need for continuation of all international support measures after it graduates from LDC status to a developing country in 2026. Addressing the 13th World Trade Organization (WTO) Ministerial Conference in Abu Dhabi, Minister for Industry, Commerce and Supplies Ramesh Rijal said that LDC graduation is the outcome of common efforts, but the challenges that the graduated country might face should be facilitated through a creative resolution over the proposal submitted by LDC group.

“Nepal re-emphasizes the need for continuation of all international support measures, particularly Duty-Free Quota-Free Market Access, Special and Differential Treatments, preferential rules of origin, service waiver, Aid for Trade and Technical Assistance and Capacity Building supports and other important flexibilities in the implementation of multilateral trade agreements and commitments after graduation for a specified period of time,” Rijal said. 

Nepal welcomes the decision taken by WTO General Council on 23 Oct 2023 and urges all Members to support the LDC graduation-related proposal submitted by the LDC Group to facilitate the smooth and sustainable graduation, he said.

In recent years, the multilateral trading system has been undermined by growing protectionism and unilateral trade measures of the trade partners. “The system has been further weakened by ineffective implementation of WTO decisions, including Doha Development Agenda. Therefore, Nepal calls for collective commitment to the multilateral trading system,” Rijal added.

Meanwhile, WTO enshrined new rules facilitating trade in services between more than 70 member states despite initial objections from India and South Africa.

According to AP, the set of rules will streamline authorization requirements and ease procedural hurdles faced by businesses. It will help reduce the costs of global services trade by more than $119bn every year, it added. Its integration into the WTO implies all 164 members have been approved as per the body’s rules, which require full consensus.

“Reaching this outcome...and integrating it into the WTO has not been an easy pass,” EU trade commissioner Valdis Dombrovskis said. “We faced opposition from two WTO members, but a ‘spirit of compromise’ eventually cleared hurdles.” 

WTO chief Ngozi Okonjo-Iweala, meanwhile, thanked “India and South Africa for finding a way forward,” calling services the “future of trade.” Global services exports are valued at more than $6.5trn, representing 23 percent of total world trade, according to the EU.

In March 2019, Nepal and Japan signed a memorandum of cooperation on sending Nepali workers to Japan under the government-to-government modality. Under the deal, specified skilled workers (SSW) from Nepal would get hired in various job sectors of Japan, ranging from nursing care to manufacturing to hospitality.

But the agreement, signed by then officiating labor secretary Ram Prasad Ghimire and former Japanese ambassador Masamichi Saigo, did not make any progress of note. It took more than a year for Japan to announce 60 job openings for caregivers. Thousands of Nepali youths who had taken up Japanese language classes, one of the prerequisites for employment in Japan, were left disappointed. They had paid thousands of rupees to private institutes to learn to read and write Japanese. 

Meanwhile, educational consultancies, the so-called training centers, and foreign job employment agencies (or manpowers as they are called in Nepal) started making claims that they offer the relevant skill and language training to send workers to Japan. It was the start of the government-to-government (G2G) labor agreement getting hijacked by unscrupulous manpowers.

Now it appears that their plan has come to fruition. The Ministry of Labor, Employment and Social Security recently came up with a new work procedure allowing manpowers to send workers to Japan. The document states that the work procedure has been introduced to make the process of sending workers to Japan more transparent, fast, and systematic. The government has essentially thrown out the G2G agreement signed with Japan and brought in privately-run manpowers. 

The government’s move also goes against the notion that G2G labor agreements could be far more transparent, safe and cost-effective for laborers. After all, Nepal has adopted South Korea’s Employment Permit System as part of the G2G deal to send Nepali workers to South Korea. 

Remittance sent by foreign job holders is a key driver of Nepal’s economy. So naturally, there are hundreds manpowers in the country. The largest share of their business comes from supplying unskilled labor forces primarily to Malaysia and the six states of the Gulf Cooperation Council, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Exploitation of Nepali workers at the hands of manpowers at home and employers in these labor destinations is no secret. It is also not unheard of that many foreign employment agencies enjoy political protection, allowing them to operate in such a manner that they make the maximum profit without a care for the safety, welfare, and rights of the workers.    

Under the new work procedure, Nepali organizations or companies which meet the standards of the SSW system and have taken permission from the ministry will be eligible to send Nepali workers to Japan. Such organizations can facilitate all the process, from conducting language and skill tests examination to sending workers to Japan.  

The document also states that the companies willing to send Nepali workers to Japan should have their training center and there should be at least two language instructors who have official certificates related to Japanese language. They  should also forge an agreement with the Registered Support Organization (RSP) of Japan which is responsible for handling specified skilled workers from foreign countries. 

RSP cannot take any fees from Nepali workers and companies. The companies  providing employment in Japan can come to Nepal to conduct the language and other tests, but there should be a prior agreement with concerned agencies.

The companies that want to take Nepali workers must issue a vacancy issuing all the details such as position, numbers and the working areas. Similarly, it should be clearly stated about the details of work, security and possible health risks it entails. The issues such as provision of social security, allowances, salary, recruitment process among others should be made transparent. 

However, there are several concerns and gaps regarding the government’s decision to hand over the responsibility of sending workers to Japan. The major one is that of transparency.  According to the ministry, those organizations who take the responsibility of sending workers should maintain a transparent way of selecting workers on merit-basis and that the ministry will oversee all the process.

This leaves a lot of wiggle room for manpowers to dictate their conduct. 

Nepali workers are going to Japan under various provisions. Even those who go under the student visas work part-time jobs there. According to the Kyodo news agency, there has been a dramatic increase in the number of people from Nepal working in Japan over the past decade, owing in part to labor shortages in the service industry caused by Japan’s aging society. 

Many in the Nepali labor force, which had surged 13-fold to 120,000 nationwide in 2022, work as rafting guides, hotel employees, airport staff and other behind-the scenes workers in bustling holiday destinations. 

According to Japan’s Ministry of Health, Labor and Welfare, Nepalis were set to become the fifth largest group of foreign workers in 2022.

The 13th World Trade Organization (WTO) Ministerial Conference kicked off in Abu Dhabi, UAE, with a focus on the smooth transition for Least Developed Countries (LDCs) as they graduate. The LDCs, represented by the WTO’s LDG Group, are voicing their shared concerns, with 15 out of 45 countries currently navigating the graduation process.

Leading the Nepali delegation is Minister for Industry, Commerce, and Supplies Ramesh Rijal. 

During the four-day conference, WTO members will be seeking to secure “deliverables” during their four-day meeting in areas such as fisheries subsidies, agriculture, WTO reform, development, e-commerce, services and investment facilitation. Also on the ministers’ agenda will be how to make progress in their discussions on gender and the environment.

In his welcoming speech to the Conference,  Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates (UAE) and MC13 Chair, stressed the historically important role the WTO has played to provide “stability, transparency and predictability for international trade,” contributing to “raising living standards, improving employment opportunities and enabling the expansion of trade in goods and services” around the world.

WTO Director-General Ngozi Okonjo-Iweala urged members to show leadership, flexibility and compromise to deliver important outcomes at MC13 for people and the planet. “Success is changing the tone about the WTO, both outside and within it. We will always have our naysayers and detractors but there is no doubt that members have shown that we can deliver when members roll up their sleeves and muster the requisite political will. During the last several weeks, the atmosphere in our preparatory discussions in Geneva has been more constructive and conducive than it was in the run-up to MC12,” she said.

In Oct 2023, WTO members reached a significant milestone with the adoption of a General Council decision on the market access element of the LDC’s proposal. This decision encourages preference-granting members to provide a smooth and sustainable period for the withdrawal of duty-free market access opportunities once countries graduate from LDC status.

Nepal qualified to graduate from the LDC category in 2021 and it is set to graduate in 2026. But the country still faces numerous challenges. The issue of LDC graduation remains a key foreign policy agenda item, with Nepal urging larger countries to continue providing trade privileges for a few years post-graduation. In turn, these larger countries are seeking Nepal’s LDC graduation strategy as soon as possible. 

While graduation is a significant development achievement, it also presents challenges, particularly the loss of preferential access to other countries’ markets, which could hinder integration into the global economy. Currently, LDCs receive special treatment from the international community, particularly in trade and development cooperation, known as international support measures.

That is why, according to the WTO secretariat, LDC Group has been discussing with other WTO members the issue of special and differential treatment in the sub-committee on LDC, with the aim of potentially reaching consensus at the ongoing conference. For an LDC like Nepal, special measures are necessary to prevent any loss of economic growth and maintain a current space of development.

Over the past four years, the WTO’s LDC Group has been discussing a smooth transition mechanism to extend LDC-specific preferences and provisions in WTO agreements after graduation. Discussions are also underway in the WTO sub-committee on LDCs’ other requests relating to special and differential treatments.

A WTO member graduates from LDC status when it meets certain socio-economic thresholds set by the United Nations, with the decision made by UN members based on the recommendation of the Committee for Development Policy. Out of the 15 LDCs on the path towards graduation, 10  (Angola, Bangladesh, Cambodia, Djibouti, Lao PDR, Myanmar, Nepal, Senegal, Solomon Islands and Zambia) are WTO members. Three (Comoros, Sao Tomé and Principe, and Timor-Leste) are in the process of negotiating their WTO accession. Ministers formally approved the WTO membership terms of Comoros and Timor- Leste at a special ceremony held at the 13th WTO ministerial conference.The other two graduating LDCs are Kiribati and Tuvalu.

Meanwhile, ministers representing 123 WTO members issued a joint declaration marking the finalization of the Investment Facilitation for Development (IFD), which is expected to contribute to LDC graduation. Vice-Minister of Trade of Chile Claudia Sanhueza highlighted that the agreement demonstrates the WTO’s ability to deliver for global trade and development and address current challenges.  “Once implemented, the IFD agreement is expected to foster significant economic growth in developing and LDC members and extend its benefits to non-participants,” she said. 

LDC countries like Nepal are in dire need of more sustainable investment flows.

Similarly, small economies integration into the international trading system is another major issue for the LDC countries. The draft decision calls for WTO members to address the issue of integrating small economies into the multilateral trading system by looking into issues such as the impact of non-tariff measures on trade costs, the link between trade policies and climate change adaptation, global supply chains, e-commerce and digital ecosystem. The decision on small economies was adopted by the trade ministers at the12th ministerial conference held in Geneva in 2022. 

The WTO meeting which has 166 members is taking place at a time when geopolitical tension is rising, ongoing trade war between US and China, Russia’s invasion of Ukraine and growing trade restrictions across the globe. According to Reuters, the WTO faces a large number of difficult issues  among its 166 members, including reforming its hobbled dispute settlement system, cutting fishing subsidies, resolving disagreements over agriculture subsidies and deciding whether to extend a 25-year-old ban on duties on electronic commerce data transmissions.

Key agendas:

Accessions

Agriculture

Development

E- commerce

Environment

Fisheries subsidies

Investment Facilitation

Ip/ Tripes

Wto reform

LDC graduation

Diclofenac, a nonsteroidal anti-inflammatory drug commonly used in veterinary medicine, has been linked to vulture population declines in South Asia. When a vulture ingests this drug, it causes renal failure and results in the scavenger’s death. As the population of the natural cleansers of the carcasses declines, carcasses are left in the environment to rot, spreading various infectious pathogens to humans and animals in their close periphery population, posing a big threat to public health. 

Nepal is home to nine species of vultures, eight of which are either threatened or near threatened. 

The country was home to almost a million vultures until the 1980s. But due to a massive use of diclofenac sodium in livestock since the 1990s and its residual effect on carcasses of the dead animals, which is the feed source for vultures, the population of vulture had been declining massively, with almost 91 percent of the vulture population lost by the year 2001. 

Out of the nine species found in Nepal, four species, namely slender-billed vulture (G tenuirostris), white-rumped vulture (Gyps bengalensis), Indian vulture (G indicus), and red-headed vulture (Sarcogyps calvus) are now critically endangered.

This dwindling population of vultures has raised concern among conservationists and several initiatives are in progress to arrest this decline. This includes the government’s decision to ban the production, import, sale and use of diclofenac in animals since 2006. 

Despite this ban, it took 17 years to declare Nepal diclofenac-free, which, nonetheless, is a commendable step in the field of vulture conservation and protection of ecological crises resulting from declining vulture populations.

Against this backdrop, a complete phase-out of diclofenac became possible through collaborative efforts of stakeholders like government agencies, veterinary professionals, pharmaceuticals and vulture conservation groups including Bird Conservation Nepal. 

The use of vulture safe anti-inflammatory drugs such as the Meloxicam Sodium and Tolfenamic Acid, public awareness campaigns and regulatory measures of the government have played a significant role in making Nepal diclofenac-free. 

Summing up, other nations dealing with similar problems, especially South Asian countries, can learn a lot from Nepal’s experience on how to work collaboratively on the protection of endangered species and ecological well-being. The involvement of various stakeholders with a collaborative approach and use of safe drugs should be the top priority of any nation as they seek to mitigate the impact of diclofenac on vulture population and maintain a healthy ecosystem and biodiversity.

The author is a veterinary officer at the Department of Livestock Services

Beginning 1956, Nepal has had 15 periodic plans, or five-year plans. The 16th plan (Fiscal Year 2024/25-2028/29) is set to commence, with the slogan of good governance, social justice and prosperity. It has set a priority of achieving prosperity for the great majority of people.

Nepal has neither had good governance nor social justice for decades. In the absence of good governance, corruption, bribery and smuggling are rife from the center to the local level. Social, political and economic inequality is rising. Prosperity has become a hollow buzzword, a slogan to impress a layman.

The 16th five-year plan has given utmost priority to develop hydropower. Nepal possesses hydropower potential of about 45,000 megawatts, which surpasses the domestic need. In other words, Nepal stands at a good position to export electricity. Export market of electricity is large, viable and positive. Considering the wider scope of export to neighboring countries, the upcoming periodic plan has set a target of producing electricity to the extent of 11,769 megawatts in five years. Half of this will be exported to India, Bangladesh and China. However, there are no ready-made transmission lines for export electricity to China or India or Bangladesh. Nepal aims to conduct a bilateral trade treaty with India, China and Bangladesh to export electricity on a large scale. Subsequently, it also sets a plan to construct and expand in-country and inter-country transmission lines. Currently Nepal has an electricity output of  2,855 megawatts, of which only a tiny part is exported to India seasonally. There is a larger possibility to export electricity to Bangladesh, provided India grants the permission to use its transmission line.

In the previous fiscal year, 98 percent of the total population had access to electricity. The 16th five-year plan aims to cover the rest of the population with electricity. Similarly, the plan has set a target of reducing electricity loss from 13.46 percent to 10.80 percent. Within the plan period the per capita electricity consumption will increase from a mere 380 KWh to 700 KWh. This sector aims to create job opportunities for 0.4m people. Currently it provides employment to less than 0.1m people. 

In order to realize its hydropower ambitions, Nepal requires a huge amount of money. For this, the government plans to mobilize internal and external capital, both from the public and the private sector. Private sector producers can construct hydropower projects in partnership with foreign investors. They can also export electricity to India and elsewhere on their own initiative. Similarly, the government will grant permits for particular projects to develop for foreign investors under the model of build, own, operate and transfer (BOOT) system.

This shows that internal as well as external capital would be poured to develop this sector to meet the target of generating electricity in the plan period of five years. It definitely helps to create jobs for those who are unemployed, and provides opportunity for both unskilled and skilled manpower. Electricity is essential to increase production capacity of other economic and social sectors such as manufacturing, agriculture, tourism, health, education and the rest of the sectors of the Nepali economy. Along with this, investment in equal footing for all of these sectors to develop side by side is essential. However, hydropower is a capital intensive sector. It requires a huge amount of money to develop. This sector would attract more internal and foreign investment to meet the growing demand of electricity in both the domestic and foreign markets. Resources in hand could be diverted for the development of the hydropower sector. But if this approach is continued over a long period of time, there is a risk of the economy losing its balance. Overemphasis given to allocating resources to develop this sector could harm the overall economy. The rest of the sectors of the economy will suffer and paralyze badly in the absence of due attention and adequate investment. Production and productivity will diminish. Supply chain will be broken. Supply of essential goods will depend on the import and in turn import depends on the income generated through electricity export. It would create the gravest effect that the Nepalese economy has never seen. So it is crucial to aim for a uniform growth of all key sectors, rather than pouring all the resources and capital into one sector.

Prime Minister Pushpa Kamal Dahal has said that Nepal’s participation in UN peace operations has always remained an important component of its foreign policy, aimed at achieving and strengthening global peace and stability which has been well praised by the global society. "I feel extremely proud as I assert the fact that Nepal presently contributes the highest number of troops and police personnel in the United Nations Peacekeeping missions and has further pledged to deploy up to 10, 000 well-trained and equipped personnel for UN Peace operations on request of the United Nations", he said.

In his statement at the opening ceremony of exercise "Shanti Prayas IV" at a function held at Army Officer's Club in Bhadrakali this morning, he said Nepal contributes the highest number of women troops among all the UN member countries in its Peacekeeping missions. The government of Nepal will continue to give highest priority to the United Nations Peace Operations and continue to support the United Nations in its every endeavors, he assured.

Stating Nepal has and will always vehemently advocate for peace and equality in international forums, he said Nepal’s commitments are rooted in its desire for peace and harmony in the world and are expressed through her participation in international treaties and agreements that promote disarmament and peaceful resolution of conflicts. "This is further manifested through our participation in the UN peace operations, where our peacekeepers have distinctly demonstrated bravery, compassion, and selflessness in their noble mission to protect and restore hope in regions torn apart by conflict."

In the contemporary global landscape, peacekeepers face heightened and multiple threats due to the complex and multi-layered nature of conflicts, driven by various factors from ethnic tensions to terrorism among others, he said and noted that adapting to this changing scenario is a must as peacekeeping operations have evolved into complex politico-military-humanitarian efforts demanding a greater understanding and preparation on the part of peacekeepers. "It has thus become crucial to reassess how we deliver peace amid new complex challenges to maintain trust and legitimacy of the UN Peacekeeping."

The Prime Minister noted that the significance of peacekeeping cannot be overstated, as it requires a deep sense of humanity, a profound commitment, and a readiness to intervene to protect the vulnerable. Peacekeepers have been embodying these principles, and their efforts have made a profound impact, often in the face of great peril.

He said that the multinational exercise emphasizes and reminds us of the necessity to continually train, refine strategies, and build strong partnerships among nations for the successful conduct of peacekeeping operations.

Extending a warm welcome to all esteemed delegates and friends from friendly foreign countries gathered in Kathmandu, the Prime Minister also extended honor and paid tributes to the brave peacekeepers who have made the ultimate sacrifice in the pursuit of peace worldwide.

He also took the opportunity to admire the steadfast commitment and dedication of all peacekeepers, who despite facing formidable challenges, continue to serve with valor and compassion. "Their contributions and sacrifices have not only brought honor to their nations but have also played a crucial role in the pursuit of global peace and stability."

Prime Minister Dahal expressed gratitude to the Ministry of Defence, the Nepali Army for hosting the event, while also appreciating the support of the US Indo-Pacific Command - Global Peace Operations Initiative for co-sponsoring this significant event.

The onus of preparing credible peacekeepers lies on the contributing countries, thus apart from regular peacekeeping training; Nepal has been participating in and hosting similar kinds of multinational peacekeeping exercises in the past, the Prime Minister noted.

A team of the International Monetary Fund (IMF) has found an investment-friendly environment in the energy infrastructure sector in Nepal albeit various challenges in the country's economy.

The IMF staff team, led by Tidiane Kinda, conducted a staff visit to Nepal from February 5-12, 2024, to discuss recent macroeconomic developments and the implementation of the Fund-supported program.

“Nepal’s external position continues to strengthen on the back of buoyant remittances, increasing tourism activity, subdued imports, and inflation is decreasing. Weak domestic demand, large outward migration, and low credit growth despite monetary relaxation continue to weigh on near-term economic growth. Enhancing domestic revenue mobilization and accelerating the execution of capital expenditure will provide needed support to growth while securing fiscal sustainability. Increased vigilance on banks’ asset quality and stepped-up supervisory efforts are important to preserve financial stability in view of growing non-performing loans," team leader Kinda said in a press note issued at the conclusion of their visit on Monday.

The medium-term economic outlook remains favorable, as strategic investments in infrastructure, especially in the energy sector, are expected to support potential growth. The upcoming Investment Summit presents an opportunity to showcase Nepal’s economic potential. Timely reforms to durably improve the investment climate will help take full advantage of the Summit and pave the way to stronger growth in the future.

The authorities’ ongoing efforts in meeting key commitments under the Fund-supported program, with the support of IMF’s technical assistance, are welcome. Performance under the programme will be formally assessed in the context of the fourth review of the Extended Credit Facility, which is expected to take place in the middle of the year, states the press note.

Gulde-Wolf, Deputy Director in the IMF’s Asia and Pacific Department, attended key meetings.

The IMF team held meetings with the Finance Minister Dr Prakash Sharan Mahat, the Nepal Rastra Bank Governor Maha Prasad Adhikari, the National Planning Commission Vice-Chairman Dr Min Bahadur Shrestha, and other senior government and central bank officials. The IMF team also met with representatives from the private sector and development partners.

About 68,000 children and their families who survived Nepal’s deadliest quake in eight years need further humanitarian aid to rebuild their lives, UNICEF said on Sunday, 100 days after the tremors that devastated parts of west Nepal.

A 6.4 magnitude earthquake struck two districts of Jajarkot and Rukum West in the remote western region of Nepal on Nov 3, killing at least 154 people, more than half of them children.

The tremors, the deadliest in Nepal since two quakes killed about 9,000 people in 2015, flattened more than 26,000 houses and partially damaged 35,000 buildings, rendering them unfit to live, according to official estimates.

UNICEF said about 200,000 people, including 68,000 children, many of whom spent a cold winter in temporary shelters, still need humanitarian assistance to recover from the disaster.

The UN agency said it is appealing for $14.7m funding to support these children.

“Thousands of children affected by the destructive earthquake are still dealing with the trauma of losing loved ones. Their development is at risk as they lost their belongings, homes and schools, among others,” Alice Akunga, UNICEF representative to Nepal, said in a statement.

“Even as temperatures rise, the needs are still high as children require nutritious food, clean water, education and shelter. One of the best ways to rebuild children’s lives and restore a sense of normalcy is to get them back to school and learning, so that they can play with their friends, learn and heal,” Akunga said.

The ‘community forest’ initiative stands as one of Nepal’s most touted conservation development endeavors. Nepal devised the ‘Hariyo Ban Nepal Ko Dhan’ (Forest as national wealth) slogan in the yesteryears with a target of having at least 43 percent forest cover. However, propagators of the campaign say Nepal’s forest dwindled to 40 percent from 45 percent in the 1960s in just 15 years after the nationalization of private forests in 1956. This decline led to the introduction of the ‘community forestry program’ in 1987, transferring forest management responsibilities to local communities. Today, more than 16,186 forest user groups are affiliated with the Federation of Community Forestry Users Nepal, which speaks volumes about the success of the program.

 The program’s underlying motive was to elevate the proportion of forested land in the country by any means necessary. This singular focus led to widespread endorsement and implementation of the project across Nepali society with governmental support, with little room for alternative perspectives. The project’s community-centric name further obscured potential downsides even though the program was implemented without adequate consultation with rural Nepali communities.

 In official rhetoric, community forest was presented as a catalyst for sustainable development of local communities. It promised not just employment opportunities but also income generation through the sale of forest products like herbs and wood. The initiative envisaged forest users groups as autonomous community organizations to manage daily operations and generate resources for various community needs, including drinking water schemes, loans for indigenous people, public infrastructure, road construction and school management, among others. However, the implementation of the program predominantly focused on increasing forest cover. The intricate dynamics of rural livelihoods dependent on forests was largely overlooked.

 When the program was introduced, villages in hilly areas of Nepal were primarily agrarian communities. These communities believed in self-sufficiency in food production. Market dependence for staple food items, especially grains, was frowned upon during those days. Even households with significant cash earnings prioritized subsistence farming for survival. Villagers traditionally stored surplus grains to weather potential crises like droughts, which ensured community resilience and food sovereignty. This helped Nepal become a net exporter of food until the early 1980s.

 Recent researches show that Nepal transitioned to a net importer of food, particularly cereals, from the early 1980s onwards. This shift, many say, is linked to the implementation of new forest policies under the banner of community forest.  Previously, forests were freely accessible to all and they contributed to vibrant rural economies centered around animal husbandry and organic farming. As it was the only available occupation in rural areas, the younger generation participated in subsistence farming.

 Theoretically, there was room for local involvement in the organizational structure of the community forest program. However, the structure was designed in such a way that inadvertently favored control by a select group of local elites. While there were provisions for marginalized communities, particularly women, to participate actively in the program, the nature of duties assigned to members often prevented genuine people dependent on forests from active engagement. As a result, the poorest and most vulnerable members were overlooked while forming management committees. The program’s structure provided an avenue for local elites to assume leadership positions within forest user groups fostering a nexus between local leaders and government authorities. This collaboration was facilitated by the government’s objective to increase forest cover, influenced by Western ideologies, and its need for local partners to execute the initiative. Lately it was understood that the then western donors helped for this project for carbon trading so that they offer token money to countries like Nepal against the saved timbers, which otherwise could be used by locals as firewood for cooking. However, taking forest dwellers away from the jungle products have diverted village livelihood from eco-friendly sustainable life with renewable energy sources i.e. firewood to LPG gas.   

During those days, communication channels were limited to government-owned media outlets, which were accessible to only a fraction of rural households. This made it easier for authorities and the local elites to introduce new initiatives with minimal resistance from the local communities. Village dynamics also facilitated the implementation process, as the endorsement of a few influential male members would be sufficient to rally community support in those days. The attraction of leadership roles within the community forest framework, coupled with the program’s preservation-centric approach, favored those who already possessed land and trees, primarily the locally affluent. Those reliant on forest resources for their daily sustenance consequently found themselves relegated to the sidelines.

The policy of preserving forests by denying access to local communities was a flawed idea as forests are home to numerous renewable resources crucial for both communities’ sustenance and forests’ health. Regular forest management practices such as clipping and trimming could have facilitated faster forest growth, aligning with the intended objectives of the community forest initiative. Some communities did envision allowing villagers to utilize forest products. But it was not sufficient to meet the needs of the local population.

 The program’s structure was focused more on increasing forest cover rather than addressing the immediate needs of people dependent on forests. This initially led to a conflict between management objectives of the programs and the livelihoods of local communities. Despite the program’s punitive measures against collection of forest resources, many villagers, especially women and children, were forced to risk fines and harassment to gather firewood and fodder. The lack of accessible media platforms and social support networks left victims of this flawed policy powerless to voice their grievances. This suppression of traditional livelihood practices forced communities to depend on external resources, which gradually undermined their self-sufficiency.

The government prioritized road construction as a symbol of progress and modernity in later years. Road expansion enhanced connectivity significantly but also facilitated people’s access to external markets. This made a detrimental impact on local production and self-reliance. The easy availability of imported goods amid erosion of traditional farming practices exacerbated Nepal’s reliance on imported food, which led to a staggering increase in food imports over the years. This situation has proven beneficial for market fundamentalists but it has affected those advocating for a sustainable, eco-friendly and self-reliant economy. Nepal’s food imports were nominal until 2001. By the year 2021, the food import bill had surged by a staggering 78 times. This has highlighted a concerning trend of increased dependency on external food sources.

The author is associate professor of Political Sociology at Kathmandu University

Finance Minister and Coordinator of Investment Summit Steering Committee, Dr Prakash Sharan Mahat, has said inquiries of the international investors to invest in Nepal have been received.

The third meeting of the Third Investment Summit Steering Committee was held under the convenorship of Committee Coordinator and Finance Minister Dr Mahat today. The meeting discussed policies, laws and structural reforms-related reports, and on the projects prepared in view of the investment summit. 

Addressing the meeting, Finance Minister Dr Mahat issued instructions to prepare the projects with due seriousness, as the international investors have shown interest in investing in Nepal. "The Summit is an opportunity for us to attract investment. The government is always prepared for legal and policy level reforms to attract foreign and Nepali investors as well as the non-resident Nepalis, to invest in Nepal," he said, adding that the main goal of the Summit is to disseminate to the wider world the message that Nepal is the best destination for investment.  This message, he said, would be best served by making simplified provisions for investment facilitation, project implementation and operation, and for repatriation of profit.

According to the Finance Minister, the World Bank is ready to organize the conference of its IEG in Nepal in coming June. "The formal letter related to this is expected to arrive in some days. The biggest ever international conference will be held in Nepal. Representatives of more than 92 countries, including the World Bank President, will attend the conference," he said.

Finance Minister Dr Mahat said the Investment Summit will take place on April 28 and 29 before the WB conference. "If this Summit can be made result-oriented, then there is the possibility also of increased private investment in Nepal, not only of the multi-national companies' investment," he added.

Coordinator of the Policy, Law and Structural Reform Taskforce and Secretary at the Office of the Prime Minister and Council of Ministers, Ek Narayan Aryal presented a report on the legal and policy-level improvements.

The report has been prepared with the participation of the private sector as well and it incorporates the feedback received in the meeting of the Investment Summit Implementation Committee under the Chief Secretary's coordination.

 Based on this report, the 'Bill Designed to Amend Some Nepal Acts for Facilitation of Investment, 2024' will be prepared through the Ministry of Industry, Commerce and Supplies and will enter the parliamentary process for its endorsement following the approval of the Council of Ministers.

The taskforce has proposed amendments to various provisions of the Industrial Enterprise Act 2076, the Foreign Investment and Technology Transfer Act, 2075, the Special Economic Zone Act 2073, the Forests Act 2076, the National Parks and Wildlife Conservation Act 2029, Land Act 2021, the Land Acquisition Act 2034, the Environment Conservation Act 2076, the Electronic Transaction Act 2063, the Civil Aviation Authority of Nepal Act 2053, the Foreign Investment and Technology Transfer Regulations, 2077 and the Forests Regulations, 2079.

The amendment proposal has been proposed to these acts and regulations with the objective of removing the legal and policy-level obstacles seen in the industries, enterprises and investment as well as doing away with the difficulties and delays experienced in the implementation of construction projects.

Similarly, Coordinator of the Technical Committee and Secretary at the Ministry of Industry, Commerce and Supplies, Mukunda Niraula, made a presentation related to the preparation of projects to be showcased in the Third Investment Summit.

The technical committee has pursued further home work by preparing the preliminary list of projects after classifying the projects at different stages of study.

Ministers at the Ministry of Energy, Water Resources and Irrigation; the Ministry of Industry, Commerce and Supplies; the Ministry of Agriculture and Livestock Development; the Ministry of Culture, Tourism and Civil Aviation; the Ministry of Urban Development, and the Ministry of Forests and Environment were present in the meeting.

Also attending the meeting were the National Planning Commission (NPC) Vice Chair, the Chief Secretary, Advisor at the Finance Ministry, the Governor of Nepal Rastra Bank, the Secretaries of various ministries, and the presidents of the Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries and the Nepal Chamber of Commerce, among others.

Vice-minister of the International Department of the Communist Party of China (CPCID), Sun Haiyan, visited Nepal in the last week of Jan 2024. During her four-day visit, she engaged in meaningful discussions with the leaders of major political parties, raising various aspects of bilateral relations.

In contrast to previous visits by Chinese delegations, Sun’s visit garnered significant attention from the Nepali government and political parties. It served as a platform to address long-standing issues that had remained unattended. By bringing these matters into open discussion, she actively sought suggestions and recommendations from prominent Nepali parties to chart the future course of Nepal-China relations. Her expressed desire was to elevate the bilateral ties to a new level, fostering mutual trust and respect.

Undoubtedly, Nepal seeks to maintain positive and neighborly relations with both China and India, with all major political parties prioritizing these two nations in their foreign relations. The adherence to the ‘one-China’ policy remains a longstanding and principled position for Nepal, dating back to the 1950s. Furthermore, Nepal is unequivocal in its commitment to preventing the use of its territory against China by any third country or non-state actors. 

Against this backdrop, the Nepal-China relationship appears generally normal and warm, with occasional minor irritants arising from misunderstandings and miscalculations. However, Madam Sun’s statements go beyond addressing these issues and are directed at external narratives that she believes some sections of Nepali society are adopting and endorsing. It is evident that Sun’s remarks aim to dismiss misconceptions and reinforce the importance of a robust and positive relationship between Nepal and China, urging a deeper understanding of shared values and mutual benefits that underpin their diplomatic ties.

Certainly, it’s essential to consider the broader geopolitical landscape when analyzing her statement and the concerns voiced by other Chinese leaders during their recent visits to Nepal. A significant factor in this context is the global positioning of China and the US policy of ‘containment’, particularly evident in the Indo-Pacific region encompassing the heartland and rimland.

Let’s delve into Vice-minister Sun’s statement and the concerns she expressed during her visit to Nepal. In her statement, she pointed out that some countries are actively working to destabilize the robust relations between Nepal and China, while also highlighting attempts to tarnish the reputation of the Belt and Road Initiative, often labeled as a ‘debt trap’. The underlying context of her statement revolves around the global power struggle, where China leads one axis, and the US leads another. The ideological differences between a socialist China and a capitalist US have contributed to conflicting relations that have, to a significant extent, divided the world’s nations and populations.

Chinese leaders, as articulated in their statements, have made it clear that they will not tolerate any attempts by the US and its Western bloc allies to set the stage against China. This geopolitical backdrop forms the nucleus of Vice-minister Sun Haiyan’s concerns, highlighting the complexities and tensions arising from the broader global power dynamics between the two major players, China and the US. The fact that Nepal has initiated steps to implement the MCC project, involving a substantial grant from the US, while progress on BRI projects remains in the consultation phase, is a matter of concern from the Chinese perspective. And, it is quite natural.

The delay and apparent reluctance in executing Chinese investments, especially in comparison to the timely implementation of projects backed by the US, may indeed be viewed as a genuine concern by Beijing. The reference to Sri Lanka’s Hambantota port, labeled as a ‘debt trap’, serves as a cautionary example, emphasizing China’s stance that such narratives are false and designed to undermine its growing global influence. Delay in the completion of Chinese-funded projects in Nepal has been a recurring concern, and Vice-minister Sun, along with Chinese Ambassador Chen Song, also raised this concern. The intention was to identify the reasons behind these delays and work collaboratively to address the issues, ensuring that Chinese aid is not perceived as a burden to Nepal.

Along with these concerns, Sun emphasized three key areas: The status and future of Nepal-China ties, the desired nature of these relations in changing circumstances, and the role Nepali political parties can play in strengthening bilateral ties.

While the general secretary of the CPN-UML, Shankar Pokherel, responded to the concerns raised by Vice Minister Sun, there was a notable absence of responses from leaders of other political parties during the consultation. Despite the silence on these specific issues, all political leaders affirmed their commitment to enhancing relations with China, expressing Nepal’s eagerness to benefit from China's economic growth. They also reiterated their commitment to the ‘one-China’ policy and support for the Belt and Road Initiative.

Ambassador Chen clarified that the BRI involves more than just concessional loans; it also encompasses grant elements. This statement comes in response to Nepal’s long-standing request for Chinese grants, particularly for major projects under the BRI. However, the ambassador also raised a crucial, unanswered question concerning the delays in projects involving Chinese companies. He pointed out that these companies, which successfully complete projects within set deadlines in other countries, face challenges in doing so in Nepal. Ambassador Chen emphasized that both sides should assess the situation and work toward resolving the issues.

The Nepal government should immediately hold consultation with the Chinese side and move toward implementing the projects keeping the grant element in priority as informed by the ambassador. But, the question left unanswered so far must be mutually addressed. That is the question of Chinese investment and its security. In this regard, the question of Ambassador Chen is serious. He queried the Nepali leaders as to why the same Chinese companies, which were completing projects in other countries within set deadlines, have been unable to do so in Nepal. And he quipped,  “Is it only due to us? No. You have to assess it.” Now it is our part to find fairness. Nepal should seriously do homework to benefit from the two rising economies of the world, which happen to be our neighbors. Until and unless we receive financial support from China and India, we cannot transform Nepal’s national aspiration of ‘Prosperous Nepal, Happy Nepal’ into reality.

A new trek route connecting bordering areas in India and China has been identified and upgraded. The Earthbound Expedition Company scouted the new trek route connecting Khunuwa in Kapilvastu district with Rasuwagadhi in Rasuwa district.

The expedition company, organizing a press conference here last Monday, launched the new trek route that links the flatland area of the country with the mountainous region.

Expedition company's President Rajan Simkhadha shared that they researched and found out the new trek route with an objective to introduce Nepal's Terai terrain along with hilly and mountainous terrain. "Conventionally, the trek route paints the picture of the mountainous region. Hence, we have identified a new trek route which encompasses areas from Terai to mountainous areas that enables us to understand religion, culture, traditions and condition of the tourist destinations."

The route includes places like Taulihawa, Kapilvastu, Kudun, Jagadishpur Taal, Butwal, Masayam Hatiya, Tansen, Arya Bhangyang, Keladighat, Ghiring, Rishing, Damauli, Bandipur, Gorkha, Taribesi, Katunje, Melang, Salme, Gonga, Singlapas, Pangsing Pas, Somdang, Chilime and Kerung check point.

The trek route whose first stop is situated at 60 meters above the sea level ends at the last stop at 4,080 meters, it was shared.

Famed American hiker Mike Obester was also part of the team who identified the new trek route who, during the press meet, confessed that there were many places to visit in Nepal which had hugely fascinated him.

The team discovering the new route shared that the newly explored route was 440-km and it took them 17 days to finish the trek on this route.

A 20 to 25 days of package could be made for the new trek. Simkhada believed that the new route could contribute to the rural economy of Nepal for it covers nine districts of 3 provinces of the country.

The informal economy of Nepal is growing larger than the formal one. The average size of the informal economy was 42.66 percent of the gross domestic production in the past 11 years, according to a study conducted by the Central Department of Management under Tribhuvan University.

According to National Income Accounting, the average size of the informal economy was 42.66 percent between 2010/21 and 2020/21. In the fiscal year 2020/21, it was 38.66 percent. This means Rs 1,441.78bn of the total GDP is from the informal economy. The GDP size in 2020/21 was Rs 3,733.27bn.

Stating that an informal economy size of 40-42 percent of GDP is very high, it has recommended to the government a gradual reduction of the informal economy.

According to the International Monetary Fund, an informal economy ranging from 29.8 percent to 37.5 percent is considered appropriate. An informal economy beyond this size poses risks for the country. Given the changes in economic dynamics in Nepal post-2015, the study has called for the need for a detailed study to measure the size of the informal economy.

Shivaraj Adhikari, chief of the Central Department of Economics, attributed factors such as frequent policy changes and high bank interest rates to the expansion of the informal economy. “The Covid-19 pandemic has also contributed to the recent growth in the informal economy,” he added.

He underscored the need for a detailed study to obtain accurate data about the informal economy, also known as the black economy, underground economy, shadow economy, or parallel economy. “Sectors still outside the tax net are considered part of the informal economy,” he added.

The study utilized the Currency Demand Approach and National Income Accounting methods to analyze the informal economy. A comprehensive estimate of GDP covers shares of both formal and informal sectors. Under the National Income Accounting method, economic activities are measured indirectly, and some methods are not disclosed publicly. The study suggests deploying an econometric model to obtain accurate data.

Although National Income Accounting suggests that the informal economy is shrinking gradually, it expanded in the past two fiscal years. The informal economy is increasing in aspects not covered by the national accounts.

More prevalent in real estate, agriculture sectors

The agriculture sector contributes about 25 percent to GDP, but it remains outside the formal economy. The study reports that 96.48 percent of the agricultural sector (including forestry and fisheries) operates in the informal economy as most production activities are conducted by households.

Likewise, about 99.97 percent of real estate transactions in Nepal fall under the informal economy. According to the study, owned or leased properties, fees and agreements, and services received by households in their residences are not considered part of the formal economy. The study also highlights a significant amount of revenue evasion through undervaluation of properties and during land transactions. It states that land transactions have become a medium to utilize black money.

Similarly, 50.42 percent of the housing and food services sector is in the informal economy. This is primarily due to the fact that only a few family-run lodges and tea shops are registered with government institutions. Restaurants, cafeterias, and tea and coffee shops are major activities in the food service sector. Most lodges and tea shops are out of the formal economy as they are run by households and not registered with any government organization.

Prof Dr Kusum Shakya, the dean of Tribhuvan University, said that the size of the informal economy grew as almost all sectors were affected by the Covid-19 pandemic. “Many women became a part of the labor force during the covid. But this study didn’t include the contribution of women in the labor force,” she added.

Former Chief Statistics Officer of the National Statistics Office, Ishwari Prasad Bhandari, argued that the size of the informal economy is shrinking in recent years as many informal businesses are being formally registered to take advantage of government facilities.

Likewise, Associate Professor Resham Thapa said that the average size of the informal economy globally is 33 percent. “It has expanded in Nepal in recent years due to the trend of undervaluation and weaknesses in anti-money laundering measures,” Thapa added.

Economic expert Dilli Raj Khanal said that expansion of the informal economy could have multidimensional impacts. “We need to simplify the taxation system so that more businesses are encouraged to come under the tax net,” he added.

Nepal will be presenting a report on its progress in achieving the Sustainable Development Goals (SDGs) to the High-Level Political Forum on Sustainable Development, the United Nations. The report to be prepared through the voluntary national review (VNR) on SDGs is to be presented by July.

The National Planning Commissions today organized a workshop on the Voluntary National Review of SDGs in Kathmandu today, gathering valuable submissions from various stakeholders.

Prior to this, Nepal conducted the first VNR on SDG in 2017 followed by the second in 2020.  According to the NC, the third VNR will be concluded by the next six months.

In today's workshop, the NPC Vice -Chair Dr Min Bahadur Shrestha said the event aimed to assess Nepal's efforts towards the sustainable development goals, learn from successful practices in other countries, and gather submissions from various sectors to promote coordination and cooperation with diverse agencies.

According to him, Nepal is fully committed to achieving the sustainable development goals and efforts towards this end are underway from the federal, provincial and local governments.  There has already been the localization of SDGs in Nepal and the budget has accorded priorities to them. Effective monitoring and evaluation mechanisms are in place for projects and plans related to the SDGs.

The 16th five-year periodic plan that will be coming into effect from the fiscal year 2081-82 BS (2024-24) has prioritized the endeavors to graduate Nepal from the category of the least developed country and to accomplish the SDGs, he added.

The Sustainable Development Implementation and Monitoring Committee under the coordination of the Vice-Chairperson of the National Planning Commission has been working to prepare a third voluntary third national voluntary review related to sustainable development.

The Economic Management Division of the Commission is working as the secretariat. Shrestha shared that Nepal would present this report in the meeting of a high-level political forum under the United Nations in July.

Lauding the activities carried out by Nepal for achieving sustainable development goals, UN Resident Coordinator in Nepal, Hanaa Singer-Hamdy pointed out the need of making efforts for further progress-oriented results.

"Nepal's progress in achieving sustainable development goals is admirable. Compared to other countries in the world, the progress of Nepal is better. But it is necessary for us to make further efforts to achieve the sustainable development goals within the stipulated time", she added.

She stressed that Nepal from the position of Chair of least developed countries should be more responsible in the activities of sustainable development goals and upgrading.

All UN member countries in 2015 had approved sustainable development goals (2016-2030) and started implementing it.  Nepal has prepared sustainable development goals 2016-30 roadmap for Nepal and implemented it. 

As per the recent statistics of the National Planning Commission, Nepal has achieved around 43 percent progress so far in sustainable development goals.

According to the NPC, the workshop was organized at the coordination of the UN Economic and Social Commission for Asia and the Pacific.

Representatives from line ministries, Nepal Rastra Bank, Policy and Planning Commission of all provinces, National association of Rural Municipalities, Municipal Association of Nepal, private sector, representatives of government and non-government offices and cooperative sector were present on the occasion.