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United Nations Secretary General António Guterres has said Nepal has long been a friend to the international system and a steadfast champion of multilateralism, peace and developing countries’ interests.

In his address to the joint session of the Federal Parliament at New Baneswor-based Parliament building on Tuesday, the UN chief stressed on the dire need of revitalization and reforms in the system.

Noting that the world is in a state of flux and is moving towards multi-polarity, he said, "A multipolar world provides new opportunities for leadership and balance on the global stage".

The UN Secretary General said this new dynamic, however, requires strong multilateral institutions to maintain peace. "History shows us that. At the beginning of the twentieth century, Europe was multipolar, but without strong multilateral institutions, it descended into war that engulfed the world. That is not a risk we can take".

Underlining the need of strong international institutions that reflect the realities of today, Guterres said the developing countries must have far greater representation in international institutions.

He called for reform of the outdated United Nations Security Council and proposed measures to reform the global financial architecture – so that it better represents developing countries and responds to their needs.  "These proposals are gaining real traction – at this year’s United Nations General Assembly and beyond.".

The United Nations Summit of the Future next year is an important chance to push further progress, he noted, adding, "I count on Nepal’s support to help make the change we need a reality.".

The UN chief argued that multilateralism must both reflect the world, and respond to it, which means creating the institutions and tools we need to address new threats, and to seize new opportunities.

"Technology can solve problems and spur development. It can entrench divisions and inflame inequality", he said, adding that today it is doing too little of the former and too much of the latter.

He called for a global response to the technologies that are changing the world at astonishing speed in a way to harness them for the good of humanity.

The UN high-level body on Artificial Intelligence comprising experts from G77 countries will report this year, so member states can consider global governance options for artificial intelligence, he said in his address. "We must also bring the benefits of technology to all, and ensure that in a new technological era, no one is left behind. That is the purpose of the Global Digital Compact the United Nations has proposed".

It aims to bring together governments and industry to ensure that technology works for all, and accelerates the Sustainable Development Goals, he mentioned.

"As a steadfast champion of multilateralism, peace and developing countries’ interests, Nepal will be a vital ally at the Summit", the UN Secretary added.

Nepal entered the semi-finals of the ICC Men's T20 World Cup Asia Qualifier with a six-wicket victory over Malaysia at the TU Cricket Ground on Tuesday.

Electing to bat first after winning the toss, Nepal bowled out Malaysia to 165 runs in the allotted 20 overs losing all the wickets.

In response, Nepal chased the target in 18 overs losing four wickets.

Kushal Malla scored a half century for Nepal. Similarly, Kushal Bhurtel contributed 43 runs off 24 balls hitting four boundaries and four sixes and Asif Sheikh made 32 runs off 23 balls with one four and two sixes. Likewise, Sundeep Jora scored unbeaten 18 runs.

The United Nations Secretary-General (UNSG) is the world’s top diplomat. The UNSG’s job is often described as the “toughest job in the world,” a sentiment passed down from the inaugural Secretary-General to his successors. The incumbent UNSG Antonio Guterres is the ninth individual to hold this esteemed position. He formally took office on 1 Jan 2017. Currently in his second term, Secretary-General Guterres is upholding the longstanding tradition of visiting Nepal, including a visit to Lumbini—the birthplace of Gautam Buddha—enlightened son of Nepal. His predecessor Ban Ki-Moon visited Nepal in 2008 and addressed the Constituent Assembly, which was engaged with the task of drafting a constitution. The UN facilitated the peace process by providing technical and electoral support. The intergovernmental organization remains as a valuable development partner for Nepal. 

The present visit comes on the invitation of the Prime Minister of Nepal.  His visit from Oct 29 to Nov 1 signifies a continued commitment to fostering international cooperation and addressing global challenges. As per the press release issued by the Ministry of Foreign Affairs on Oct 27, the Secretary-General will address the joint session of the Federal Parliament on Oct 31. The first-hand observation of the impacts of climate change on the Himalayas and a brief conversation with the affected communities are also on his itinerary.  

Immediately after arrival on Oct 29, he had meetings with Minister for Foreign Affairs, Narayan Prakash Saud, and Prime Minister Pushpa Kamal Dahal where he discussed matters, including Nepal’s ongoing peace process, graduation to the status of a developing country from the category of Least Developed Countries, advancement toward the sustainable development goals (SDGs) and the mitigation of climate change impact. Nepal faces the impact of climate change disproportionately. 

The Prime Minister assured the UNSG of Nepal’s commitment to bringing transitional justice process to a logical conclusion through the Truth and Reconciliation Commission and Commission of Investigation on Enforced Disappeared Persons in accordance with the rulings and directives of the Supreme Court, related international conventions, and concerns and interests of the victims.  

The UNSG also had separate meetings with former Prime Minister and Nepali Congress President Sher Bahadur Deuba, and opposition leader in the House of Representatives and Chair of the CPN-UML. The meetings reportedly centered on concluding the peace process and addressing the impacts of climate change.  

The UN Security Council (UNSC) picks up UNSG. It means all five permanent members of the UNSC have to agree on the candidate. Mainly the US and Russia have a great deal of sway over the selection. Guterres assumed the office of UN Secretary-General on 1 Jan 2017. He is a former Prime Minister of Portugal and has worked as the chief of the United Nations High Commission for Refugees, one of the most essential UN bodies. As a matured and most experienced politician turned world’s top diplomat, he has a fair knowledge of the inner workings of the UN’s cumbersome bureaucracy. He is multilingual and articulate and is considered decent and able, pragmatic and principled.  

Secretary-General Guterres heads the UN at a time when the world body stands at a crossroads, facing the worst institutional crisis. The world body has been made feeble and bypassed in most of the cases. However, the UN, made up of 193 sovereign member-states, has the widest reach, heaviest weight, and global legitimacy. There is no substitute to the universality and unique legitimacy that comes from the United Nations. The UN incorporates the “collective will” of member-states.  Member-states exercise their rights of sovereign equality under the UN Charter, which also acts as the guardian of “inadmissibility of interference” in their internal affairs. 

The UN is a forum where every country presents its national policy, perspectives and positions on contemporary global issues.  It is where there is sovereign equality of nations. The UNSG draws attention to the plight of the poor, the sick and the victims of war. The UN is also a forum where 193 members are often found querulous and demanding on the organizations. Every member country is apparently determined to put national interests before the common good.  

There are institutional limitations to address all their concerns and demands. The UN and UNSG can only influence when permanent five-strong states cooperate, and allow the world body to perform. US President Harry Truman is quoted to have said, “No matter how great our strength, we must deny ourselves the license to always do as we please.” 

Great powers can make the UN work or frustrate all its efforts. If great powers see no economic value or strategic importance, they show callous indifference to the principles and purposes of the UN Charter. Rwanda is one such example. 

The UNSG, though the world’s top diplomat, is the servant of the politically powerful. Former Secretary-General Kofi Annan, delivering a series of high-profile speeches in his final days at the office, said, “America is not working better with other countries—sees it as a lament that might be seen as a sign of his own frustrations, (The Economist, 18 Dec 2006). When the UNSC did not endorse America and its allies for invasion of Iraq in 2003, hostility with the United Nations grew in Washington. Putting all shortcomings or non-performances of individual states at the doors of the UN and its Secretary-General, often referred to as a “scapegoat” (SG)—a phrase attributed to a former Secretary-General, Kofi Annan, does no justice to the office of the UN Secretary-General. The crucial failure of political will on part of the member-states should not be attributed as the fault of UNSG. 

The three pillars

The United Nations has three pillars consisting of economic development, human rights and making and keeping peace. UNSG acts often as a cajoler and fixer, not a global boss. Acting as a neutral arbiter for stopping death and destruction and preventive diplomacy is what the UN does. 

Member-states work within the United Nations to project their positions and use their ability to attract and persuade others to accept their positions, which is often called “soft power.” The United Nations, with all imposed structural imperfections, has no hard or coercive power. But it is the UN that has the universality, legitimacy and acceptability where sovereign states come together, share burdens, address common problems and seize opportunities. 

It was within the vital framework of the principles and purposes of the UN Charter that G20 found a way out to bring warring countries  on board and agree on the most contentious issue—Ukraine. This shows it is up to the member-states what they want to make of the UN—an effective organization or incompetent or a prisoner of rivalries. 

Problems sans passports

The world is simultaneously confronting challenges on all fronts in an age of “problems without passports,” like climate crises, persistent poverty and inequality, pandemic, populism, communalism, growing intolerance and transnational crimes. The world confronted coronavirus and saw havoc with even great powers struggling with serious health problems of their people. The divides growing between the poor and rich, lower and middle-income countries were the most alarming signs.  

The world is burdened with several crises ranging from the Ukraine war to Hamas-Israel war to transnational challenges. There is a development crisis. Desertification is increasing, environmental degradation is staring at us amidst a scarcity of resources. The pervasiveness of poverty is often referred to as “bottom billion.” 

Global problems require global solutions. Complex problems must be dealt comprehensively, in their full economic, social and political dimensions. As no other institutions exist in pursuit of global commons and global good, the UN is the only institution to have global legitimacy. Unilateralism has proved ineffective. Multilateralism with the UN at the center seems to be the only way forward. 

The UN Charter long ago noted that peace and security depend on the social and economic advancement of people. It is often seen that the UN has tackled challenges rhetorically, contributing to its reputation as a talking shop. The UN should rediscover the principle of pragmatism, which is hard work for a real political pragmatism.  The theme chosen for the 78th UNGA this year has been “rebuilding trust and reigniting global solidarity” to accelerate action to speed up the achievement of the 2030 Agenda for Sustainable Development Goals (SDGs). The Agenda has 17 goals ranging from combating climate change to eliminating hunger and poverty to achieving gender equality, and promoting social welfare. This set of goals was adopted in 2015 to realize them by 2030, after the MDGs (Millennium Development Goals), adopted in Sept 2000 at the UN Millennium Summit reached their deadline.  

The graduation plan

The UN website describes SDGs to be in deep peril, with more people in extreme poverty, development reversing under the combined impacts of climate disasters, conflict, economic downturns and lingering covid-19 effects. As the country plans to graduate to developing status from Least Developed Countries’ (LDCs) status by 2026, the issue of how to make the graduation sustainable and irreversible should figure in discussions with the UNSG.   

Global power is making a historic transition to Asia based on the growth of Nepal’s neighbors—China followed by India. Geopolitical tensions and rivalries are rising to their prominence in Asia and Nepal’s neighborhood. There is a clear distraction from pressing problems, as politics has become explosive and populist, diplomacy, too, stands like a minefield.  Nepal has to be extraordinarily and exceptionally careful and show its wisdom in securing national space and ensuring a decent life for its people. 

Nepal formally joined the United Nations in 1955. Over the years, Nepal has shown unwavering commitment and support to the principles and purposes of the UN Charter and unflinching faith in multilateralism.  The foreign policy of Nepal, as Prime Minister BP Koirala said while addressing the 15th UNGA-1960, “is fully inspired by the principles and purposes of the United Nations’ Charter. We regard the United Nations not only as a bulwark of our independence and security, but also as the protector of our rights and freedom.” 

Nepal’s participation at the highest level at the UNGA and contributions to peacekeeping missions under the aegis of the UN for the cause of global peace and security is a part of this tradition.  Currently, 6308 Nepali peacekeepers are deployed in 13 missions in troubled spots around the world. Nepal ranks first in sending women peacekeepers and second as troops contributing country under the aegis of the UN. 

Time for a revamped UN

The structure of the world body including its main component UNSC does not reflect the existing geopolitical, demographic and economic realities. However, the UN is essential to the world in which we live. The only alternative is to have a more effective and functioning United Nations. 

There is no room for bullying tactics and confrontational style in the 21st century. Without support from 193 member-states, UNSG can do little, and “cut the mustard,” restore excellence, integrity and pride, and make the organization more relevant and effective to the present needs of its members. The job of the UNSG has been described by the inaugural incumbent as “the most impossible task on earth.” Some SGs have been more a doer than a communicator.  

The refugee crisis

As a UN High Commissioner for Refugees, the current Secretary-General facilitated the process of the third-country resettlement of over 100,000 Bhutanese refugees in Europe and America. Bhutan had forcibly evicted these people in the 1980s and 90s.  Resettlement process in different countries was carried out in consultations and coordination with the UN and concerned countries. There are over 6000 refugees remaining in the refugee camps. Either they should return home in dignity or resettled in third countries. It would not be out of place and context to raise the issue with the visiting dignitary, who is fully familiar with the crux of the problem. 

The author is a former Nepali ambassador/PR to the UN

RSS

The government and the Asian Development Bank (ADB) today signed a concessional loan agreement for the implementation of Rural Connectivity Project-Additional Financing.

The agreement involves a loan amounting to USD 100 million, which is equivalent to around Rs 13 billion.

Finance Secretary Krishna Hari Pushkar and ADB Country Director for Nepal, Arnaud Cauchois, signed on the agreement on behalf of their respective sides in the Ministry today, according to the Ministry of Finance.

Similarly, the project agreement was signed by Bharat Prasad Aryal, Director General of the Department of Local Infrastructures, five province secretaries: Ramesh Kumar Singh, Amrit Shrestha, Shankar Prasad Pandit, Sunil Poudel and Vishnu Bhandari; and the ADB Country Director.

The project aims to strengthen rural road connectivity and enhance the capacity of rural infrastructure agencies and road users. The proposed assistance is expected to have a transformational impact by establishing and maintaining year-round road connectivity.

On the occasion, the Finance Secretary said," Rural communities are also vulnerable to climate change impact such as increasing frequency and intensity of flooding and landslides which can damage roads.  In this context, this project has a great relevance and significance in establishing and maintaining year-round connectivity to promote inclusion and growth in rural areas."

The ADB Country Director for Nepal expressed hope that the concessional loan would play a crucial role in improving rural connectivity by constructing all-weather roads and bridges across five out of seven provinces in Nepal, totaling 324 kilometers.

The Finance Secretary appreciated the ADB's continued support to Nepal's socio-economic development.

UN Secretary-General Antonio Guterres, who is presently on a four-day official visit to Nepal beginning on Sunday, has said the world should learn a lesson from Nepal's homegrown practices for the establishment of peace.

In his address to a program organized at the Pulchowk-based UN Building in Lalitpur today, Guterres said the world should take a lesson from Nepal's homegrown practices for establishing peace, efforts to conclude transitional justice and its contribution to the UN peacekeeping operations.

On the occasion, he urged the UN staff in Nepal to assist Nepal to become competitive and successful in each areas including the socio-economic sector.  He sought the role of UN staff here in Nepal's efforts to achieve the sustainable development goals (SDGs).

He made it clear that his Nepal visit is primarily centered on the matters to conclude the peace process, to assist those affected by the impact of climate change and to facilitate Nepal to graduate to a developing country from the category of the least developed country.  He reminded that the interests of survivors be prioritized while taking the transitional justice process to a conclusion.

Expressing his concerns about Nepal bearing the brunt of the impacts of climate change including snow melting although it does not have any role in carbon emissions globally, Secretary-General Guterres stressed the need for all stakeholders to take the matter seriously.

Hanaa Singer-Hamdy, the UN Resident Coordinator in Nepal Hanaa Singer-Hamdy, the UN Resident Coordinator in Nepal said all assistance would continue for upgrading Nepal to a developing country and achieving a sustainable peace as per the UN guidelines and recommendations. The UN continues to support Nepal for the implementation of its constitutional rights and the equitable inclusive development, she added.

Guterres arrived in Nepal on Sunday at the invitation of Prime Minister of Nepal Pushpa Kamal Dahal.

Visiting UN Secretary General Antonio Guterres has pledged to bring global attention to the impact of climate change on mountain life in Nepal.

He made this commitment while visiting the Khumbu Pasang Lhyamu Rural Municipality-4 in Solukhumbu as part of his four-day official trip to Nepal.

On the occasion, Guterres engaged in an interaction with the local community to discuss the challenges posed by climate change and its impacts on their daily lives. He vowed to inform the world about the consequences of climate change in mountain regions, incorporating the input of the local residents in the upcoming COP-28, the UN Climate Change Conference.

The UN Secretary General highlighted that developed nations bear significant responsibility for climate change, but it is disheartening that rural areas like Khumbu are experiencing its consequences disproportionately, according to rural municipality chair Laxman Adhikari.

Guterres vowed to initiate efforts to mitigate the consequences of climate change and raise global awareness of the urgency of addressing these issues.

During the interaction, local residents informed him about various climate change-related issues, including the melting of snow, climate change-induced hazards, the depletion of water resources, the impact on local agriculture, and occurrences of avalanches. They also discussed the energy crisis in their locality and requested UN support for the development of micro hydropower projects.

The delegation led by Secretary General Guterres includes Jean-Pierre Lacroix, Undersecretary General for Peace Operations, the United Nations, Hanaa Singer-Hamdy, the UN Resident Coordinator in Nepal and other UN officials.

Guterres arrived in Nepal on Sunday on his four-day official visit at the invitation of Prime Minister of Nepal Pushpa Kamal Dahal.

On the first day of his visit, he separately paid a courtesy call on President Ram Chandra Paudel and PM Dahal. He also had separate meetings with Nepali Congress President and former Prime Minister Sher Bahadur Deuba, CPN-UML Chairman and former Prime Minister KP Sharma Oli, Speaker Devraj Ghimire, Deputy Prime Minister and Defense Minister Purna Bahadur Khadka and Minister for Foreign Affairs Narayan Prakash Saud.

Following the meetings, Secretary General Guterres visited the Patan Durbar Square, a heritage site of historical and archeological importance.

PM Dahal hosted a banquet reception on Sunday evening in his honor. 

During his stay in Nepal, he is planning to visit Pokhara, Annapurna Base Camp and Lumbini.

According to the Parliament Secretariat, he is slated to address the joint session of the Federal Parliament on Tuesday afternoon.

Visiting United Nations Secretary General Antonio Guterres has said that Nepal's efforts made to its graduation from LDC are praiseworthy.

Talking to the media after his meeting with Prime Minister Pushpa Kamal Dahal, the UN Secretary General also said that Nepal has played a key role in maintaining world peace and resolving multilateral issues.

"Besides peace building, Nepal has made positive achievements in political transformation in the past 20 years,' he said.

"Much more international action is needed. Developed countries must step up to support sustainable development, and help developing economies including Nepal to tackle the climate crisis.”

Saying that he will see the terrible impact of the climate crisis in Nepal, UN Secretary General Guterres argued that the developed nations should help Nepal in this regard.

On the occasion, Guterres said that the transitional justice process in Nepal must help bring peace to victims, families and communities and added that Nepal's transitional justice should meet international standards, the Supreme Court’s rulings, and the needs of victims.

Moreover, he urged to end the nightmare for the people of Gaza, Israel and all those affected around the world.

The UN Secretary General expressed his sympathies to the bereaved families of 10 Nepalis who lost their lives in Israel and hoped for the safe release of missing Bipin Joshi.

Nepal hammered Hong Kong by six wickets in their second match of the T20 International Triangular Series on Thursday.

Nepal reached the target of 95 runs set by Hong Kong in 13.5 overs.

In the match played at the Mulpani Ground in Kathmandu this afternoon, Hong Kong scored 94 runs in 19.3 overs losing all the wickets.

Chasing the target of 95 runs, Asif Sheikh scored highest 42 runs off 36 balls hitting six fours for Nepal.

Captain Rohit Paudel contributed 25 runs and Gulsan Jha unbeaten 14.

Yasim Murtaza of Hong Kong scored 36 runs and Zeeshan Ali added 17 runs to the scoreboard while other batsmen failed to score in double digits.

Karan KC of Nepal took four wickets.  Similarly, Sompal Kami and Abhinas Jha claimed two wickets each and Kushal Malla and Mausam Dhakal took one wicket each for Nepal.

Earlier, Nepal had won the toss and invited Hong Kong to bat first.

In their first match, Nepal defeated the UAE by seven wickets.

With Capital Rohit Paudel’s half century, hosts Nepal defeated the UAE by seven wickets in the inaugural match of the T20 International Triangular Series at the Mulpani Ground on Wednesday.

The UAE, who were invited to bat first after losing the toss, scored 140 runs at the loss of seven wickets.

Nepal reached the target of 141 runs in 18.5 overs losing three wickets.

Captain Paudel scored unbeaten 51 runs off 40 balls hitting five fours while Dipendra Singh Airee made unbeaten 34 runs off 23 balls with three fours and one six.

Similarly, Kushal Bhurtel contributed 14 runs and Kushal Malla returned to the pavilion by scoring 11 runs.

Karan KC took three wickets for Nepal. Likewise, Gulshan Jha claimed two wickets and Sompal Kami and Abhinas Jha took one wicket each.

Nepal’s economy is grappling with the bitter reality of a recession, even if it hasn’t been officially acknowledged by the government. Despite rosy forecasts from global financial heavyweights like the World Bank, International Monetary Fund and Asian Development Bank, the nation’s economy is reeling under a multitude of challenges.

A relentless surge in inflation is delivering a harsh blow to the commoner. Experts say that Nepal’s economy seems trapped in a downward spiral of high inflation and sluggish growth. Pushpa Kamal Dahal’s government is facing intense pressure from opposition parties and various stakeholders to take immediate action to revive the faltering economy.

A report published by Nepal Rastra Bank reveals that consumer price inflation reached a worrisome 8.19 percent in mid-Sept 2023, up from 7.52 percent in the previous month. According to the World Bank, consumer prices are scaling new heights in the current fiscal year.

The numbers are unsettling. Food and beverage inflation has skyrocketed to 9.74 percent, while non-food and service inflation is at 6.99 percent. Economists are sounding the alarm, warning that inflation is poised to rise in the coming months, further increasing the cost of living.

Economist Dilli Raj Khanal says the rising inflation is a glaring example of failed monetary policy. He warns that inflation is likely to grow after the festivals if the government fails to see the problems through new and innovative ways, adding that fresh crises are on the horizon. 

The price index for spices has surged by an astonishing 45.46 percent, sugar and sugar products by 17.86 percent, and vegetables by 14.51 percent. Cereal grains and their products are up by 13.38 percent, milk products and eggs by 12.60 percent, and restaurant and hotel prices have climbed by 10.97 percent. The brunt of this rising inflation is felt most acutely by the people. 

In its recent report, the World Bank underscores the challenges of taming high inflation and the need for a careful balancing of policies to stimulate growth.

The decline in edible oil prices from Feb 2023 onwards, reflecting global price reductions, had an offsetting effect on prices. But the persistence of high inflation impedes policies to stimulate growth. Nepal’s vulnerability to external shocks implies a difficult trade-off between policies that boost growth and those that contain inflation.

The World Bank report also identifies key drivers of food price hikes, including supply side shocks such as India’s export restrictions on wheat and rice, along with domestic policy changes like the removal of VAT exemptions on basic food items. The report further highlights the importance of price support to producers of rice, milk and wheat.

To compound matters, factors like the lumpy skin disease and unpredictable monsoons are impacting agricultural output, while services and industry are being affected by higher-than-expected import prices and export bans from India.

In this tumultuous economic landscape, Nepal’s private sector has voiced its concern, claiming that international financial institutions are exerting undue pressure on Nepal Rastra Bank and the Ministry of Finance. Despite the various challenges the nation faces, Nepal’s external position has strengthened, thanks to prudent fiscal and monetary policies, thriving remittances, and a boost in tourism.

However, the number of Nepali workers taking approval for foreign employment decreased 28.3 percent to 74,466 in September.   

The Nepali remittance sector, according to the NRB report, saw a remarkable 22.1 percent increase to Rs 228.37bn compared to an increase of 19.8 percent in the same period of the previous year. However, the number of Nepali workers seeking approval for foreign employment has seen a significant 28.3 percent decline to 74,466 in September. The economic landscape is complex, with some positive signs like a 3.8 percent increase in gross foreign exchange reserves to Rs 1,598.9bn in mid-September compared to Rs 1,539.36bn in mid-July 2023.

While Finance Minister Prakash Sharan Mahat acknowledges some gradual improvements in the nation’s economic situation, it's evident that not all internal indicators suggest a smooth ride.

Reflecting the current state of affairs, the government’s total expenditure reached Rs 131.14bn in the first two months of the fiscal year 2023/24. Recurrent expenditure, capital expenditure and financial expenditure stood at Rs 87.66bn, Rs 8.16bn, and Rs 35.31bn, respectively, during the review period. Up till mid-Sept, the government’s total revenue collection, including funds transferred to provincial and local governments, reached Rs 141.08bn, with tax revenue accounting for Rs 127.96bn and non-tax revenue at Rs 13.12bn.

The total expenditure stood at Rs. 4.77bn and resource mobilization of provincial governments stood at Rs 21.16bn, respectively. The total resource mobilization of provincial governments include the grants and revenue transferred from government totaling Rs 15.15bn, and revenue and other receipts of provincial governments totaling Rs 6.01bn.

The provincial governments have also been active on the financial front, with total resource mobilization reaching Rs. 21.16bn. This figure includes grants and revenue transferred from the central government, amounting to Rs 15.15bn, as well as provincial governments’ own revenue and receipts, totaling Rs 6.01bn.

Economy at a glance

• Inflation at 8.19 percent
• Exports decrease by 7.8 percent
• Trade deficit decreases by 4.7 percent
• Remittances increase by 22.1 percent
• Balance of payment remains at a surplus of Rs 53.61bn
• Forex stood at Rs 159.90bn
• Government expenditure amounts to Rs 131.14bn
• Revenue collection Rs 141.08bn

Nepal defeated Bahrain by seven wickets to register their second victory in a row in the ACC Men's U19 Premier Cup in Malaysia on Sunday.

Chasing a meager target of 78 runs, Dev Khanal and Arjun Kumal scored 32 runs each off 27 balls with four boundaries and one six and off 31 balls with five fours respectively to achieve comfortable victory.

Nepal reached the target in 11. 4 overs at the loss of three wickets. 

In their first match, Nepal had thrashed Iran by a wide margin of 274 runs.

For Bahrain, Anas Obaid Syed took three wickets.

Electing to bat first after winning the toss, Bahrain scored 77 runs in 37.5 overs losing all wickets.

Muhammad Basil scored highest 34 off 77 balls with two sixes and two fours. However, other players could not score double digits for the team.

For Nepal, Dipesh Kandel claimed six wickets while Durgesh Gupta four.

Nepal will play their third match against Saudi Arabia on October 19.

Top three winners in the tournament will qualify for the ACC Asia Cup to be held in Pakistan in December.

Finance Minister Dr Prakash Sharan Mahat has urged the European Union (EU) to remove Nepal from their aviation safety concern list.

He made this request in a sideline meeting with EU Commissioner Jutta Urpilainen in Marrakesh of Morocco on Thursday. Finance Minister Mahat is currently in Marrakesh to participate in the annual meeting of the World Bank and the International Monetary Fund (IMF).

Similarly, during the meeting, he urged the EU to increase its economic assistance to Nepal, Minister Mahat's secretariat stated. 

Since 2013 the EU has put Nepal's airlines companies in its safety concern list and due to this the airlines companies of Nepal are not allowed to operate flights in the European skies.

The EU had refused to de-list Nepali airlines from the safety concern list when it carried out a monitoring of Nepali airlines in 2079BS.

It had announced its plan of conducting an on-site monitoring of the status of air safety issues in February 2023, but the EU team did not come to Nepal for the monitoring following the air crash near the Pokhara Airport on January 15.

The EU's security committee has, however, conducted an on-site study of Nepali airlines companies and on aviation security in August/September and the Finance Minister has made this request in this context.

On the occasion, the EU Commissioner said that they would be carrying out works on this matter through the EU Embassy in Nepal and also hold discussions on this.

Nepal’s vibrant Dashain market, once characterized by bustling streets full of shoppers and a palpable sense of excitement in the air, is largely subdued as a result of ongoing economic crisis. 

Nepal’s economic downturn has cast a shadow over the traditional fervor, leaving many to ponder on the impacts on sales, transactions, and the overall excitement of the festival season. Recession has brought us to a point where we need to reconsider and reevaluate the dynamics of the Dashain market. It is imperative to delve deeper into the nuanced effects of recession on the Dashain market, assessing whether the economic constraints have dampened the customary zeal and prompted a more restrained approach to spending.

In recent years, the Dashain market has experienced a visible shift in sales and transactions that serve as a barometer of economic health. While the demand for essentials and customary festive items remains steady, the extravagant purchases and splurges seem to have taken a back seat. Consumers are exhibiting a heightened sensitivity towards their financial resources. 

The Fashion Hub, nestled in the heart of New Baneshwor, is the brainchild of Juna Giri. In previous years, the lively echoes of footsteps in her store bore witness to the exuberant spirit of the season, with sales soaring from the auspicious day of Ghatasthapana. However, in the wake of the global pandemic, a subtle transformation has taken place. It’s like a big shift in how people do their Dashain shopping, and Juna’s shop is feeling it too. 

“Before Covid-19 struck, our sales were flourishing. We had about 15 daily visitors, and during Dashain, that number would swell to around 50, starting from Ghatasthapana. However, in the aftermath of the pandemic, customers have shifted to online shopping. But there aren’t as many sales as before,” says Giri. “After Covid-19, walk-in customers have slashed. The same familiar clothes hang on our racks, with few to no new arrivals.”

The hallmark of Dashain market, the hustle and bustle, has been somewhat tempered. The once hectic shoppers, darting from stall to stall, now move with a measured determination. The cacophony of haggling and bargaining, while still present, has taken on a more subdued tone. This recalibration of the shopping experience mirrors a broader societal shift towards a more mindful consumption pattern, in regards to recession. 

There has also been a noticeable surge in online shopping preferences among Dashain celebrants. Instead of rushing from stall to stall, more and more people are choosing to scroll through virtual storefronts from the comfort of their homes. This shift towards e-commerce reflects a broader societal transition towards convenience and accessibility in the shopping experience.

“We opened a TikTok account for our store, and in just a year, we’ve surpassed 38,000 followers. Many of the customers who visit us now say they discovered our store through TikTok,” says Giri.

Much like The Fashion Hub, numerous clothing stores have undergone this transformation. The tradition of haggling and bargaining, while still prevalent in the traditional market, has also been influenced by this digital evolution. Online platforms introduce a different method of negotiation, often involving the use of digital coupons, promotional codes, and comparative shopping, ultimately reshaping how consumers interact with sellers.

Market saturation has intensified the impact of the recession. Consumers now prefer unique, trendy clothing over mass-produced options found in every other store. Rose Pahari, owner of Bellevogue_np, a platform enabling customers to pre-order desired items from the USA, reflects on this shift in consumption patterns. 

“We receive substantial pre-orders for ethnic wear because individuals are inclined towards exclusivity. However, this year has witnessed a decline in consumption. We observe a surge in online bargaining as people become more discerning and prudent with their spending,” says Pahari.

Limiting the uncontrollable spending

Recession has acted as a reality check, prompting consumers to reevaluate their spending habits. While the allure of extravagant purchases remains, a newfound restraint prevails. The Dashain market, once a playground for unrestrained spending, is now a space where thoughtful choices are celebrated.

In a recent report from the Ministry of Finance, concerns arise as government expenditures, including salaries and Dashain allowances, have surpassed income, leading to a negative account balance.

Dhaniram Sharma, joint secretary of the ministry, urges against misconstruing this situation as a sign of distress, explaining that while first-quarter revenue collection fell short of targets, overall revenue is on par with last year’s. This fiscal situation prompts reflection on the age-old tradition of celebrating Dashain with lavishness, sometimes surpassing one’s financial capacity. The government’s provision of Dashain allowances, while well-intentioned, can inadvertently encourage this trend. It’s important to recognize that an extravagant Dashain celebration should not be equated with genuine tradition, but may, at times, stem from a desire to imitate unsustainable practices.

The Dashain market in Nepal stands as a testament to the resilience and adaptability of Nepali culture in the face of economic challenges. While the recession has ushered in a more measured approach to spending, it has not extinguished the fervor of the festival. Instead, it has prompted a reevaluation of priorities, emphasizing the true essence of Dashain—family, togetherness, and the celebration of traditions. As the market evolves, it continues to serve as a reflection of the ever-evolving economic landscape of Nepal.

A joint meeting of the ministers for foreign affairs of Nepal and Sri Lanka is to take place in Kathmandu on December 21-22.

The earlier round of this meeting had to be hosted by Sri Lanka last year. Nepal is hosting the meeting in Kathmandu on the intent of the Sri Lankan government.

Matters related to multi-dimensional aspects of Nepal-Sri Lanka bilateral relations will be discussed in the meeting, informed Ambassador of Nepal to Sri Lanka, Basudev Mishra.

The meeting will widely discuss the measures to expand diplomatic and commercial as well as cultural and educational relations, he said.

Inflow of tourists from Nepal to Sri Lanka and vice-versa has increased in the wake of COVID-19 pandemic, he said, adding Sri Lanka can be a major destination for Nepali tourists.

Nepal and Sri Lanka had established diplomatic ties on July 1, 1957.

Ambassador Mishra expressed his belief that Nepal and Sri Lanka will see a new chapter in the bilateral relations in the coming year.

He further said that bilateral discussions among the vice-chancellors, professors of the universities, high-level government officials and representatives of other non-government agencies have been intensified for the expansion of relationships.

Last week, the World Bank and International Monetary Fund (IMF) came up with their respective reports highlighting the state of Nepal’s economy. 

Both reports state that Nepali economy, which is currently going through a recession, will grow in the coming days mainly due to the positive indications in agriculture, tourism and remittances.
For the first time, the government has acknowledged that the nation is in a recession, which is primarily caused by a decline in industrial production, low investment, liquidity crisis, high-interest rates, widening trade deficit, low capital spending, and decrease in tax revenue.

The IMF’s prediction is that Nepal’s economy will grow by 3.5 percent in the current fiscal year. Similarly, the World Bank has projected that Nepal’s economy is poised to achieve a growth rate of 3.9 percent.

In September, the Asian Development Bank had anticipated Nepal’s economy to grow by 4.3 percent in 2024, up from the estimated growth of 1.9 in the fiscal year 2023.  

Nepal’s external situation has improved because of responsible fiscal and monetary policies, robust remittances, and rising tourism. After slowing down in 2018, growth is anticipated to pick up in the fiscal year 2023/24 to 3.5 percent, although it will still be below potential due to weak domestic demand and high inflation.

The Extended Credit Facility (ECF) arrangement’s third review calls for a disbursement of about $51.3m, and the Nepali government and IMF team have agreed at the staff level.

Despite monetary easing, necessary balance sheet repairs have been preventing credit expansion. The ECF’s reforms seek to increase credit stability and promote economic growth while preserving external and price stability. In order to increase demand, the budget calls for accelerating the planned increase in capital spending.

Senior economist at the IMF Tidiane Kinda stated in a statement that regardless of monetary easing, loan growth has been constrained by the need to restore balance sheets following the credit boom and a downturn in the real estate market. In August, Nepal’s inflation maintained its high at 7.5 percent, according to the IMF, but it is anticipated to decline. The forecast for Nepal over the medium term is still positive, as planned investments in infrastructure, particularly in the energy sector, are anticipated to help sustain potential growth.

The Nepali government is working to strengthen Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), notably by amending existing AML regulations to conform to global norms. On the country’s side, however, growth is projected to have slowed in the most recent financial year due to import restrictions from the previous year, regulatory uncertainty regarding land markets and construction licensing, lower credit flows, and weaker domestic demand in the context of significant post-Covid emigration outflows.

The resulting revenue shortfall caused the fiscal deficit to increase in the most recent fiscal year, but it did so at a level that still fits with a manageable level of public debt, demonstrating budgetary restraint. However, there seems to be a contradiction in the IMF, World Bank, and Nepal government’s perceptions.

The expansion of Nepal’s economic growth is predicted by the World Bank for the upcoming fiscal year. The World Bank claimed that it anticipates Nepal’s economy will rebound to a 3.9 percent growth rate in the fiscal year 2024. It also indicated that Nepal's Gross Domestic Growth Rate will stay at 1.9 percent this year.

According to the update, Nepal can revive its economy by fostering tourism as well as export and remittances. Even while Nepal’s economy currently benefits greatly from tourism, there are still chances for more investments to increase returns, particularly for local communities. This is significant since Nepal is one of many nations attempting to solve the Covid-19 pandemic-related development setbacks while attempting to limit massive biodiversity losses.

Within the next three years, Nepal hopes to become a middle-income country, and the government has been painting a picture of a thriving economy based on data showing rising remittances and improvements in the tourism industry. However, the general state of the nation’s economy is getting worse by the day.

Chiranjibi Nepal, former governor of Nepal Rastra Bank and a senior economist, points out that the World Bank's optimistic outlook is in contrast to the challenging reality on the ground. He emphasizes that to truly understand a country's financial condition, we must observe local financial developments. He argues that international reports tend to highlight the positive aspects and may not accurately reflect the true economic situation. Nepal's government should focus on policies that stimulate local financial markets instead of relying solely on external reports.

“These reports are made by financial backers which demonstrates the positive side. How could a financial backer focus his/her interest into destruction?” he says. 

Senior economist Dr. Chandra Mani Adhikari says Nepal’s economy is distinct from other nations. This is the busiest time of year for Nepal’s economy, but it appears to be stagnating this year due to limited expansion, low wages, inflation, inadequate investment, corruption, lack of private sector confidence, youth migration, and sudden radical shifts in policy.

These are just a few of the economic features that Nepal is experiencing, Adhikari says, The Nepali economy has become stuck in a downward spiral of high inflation and sluggish growth.

“The banks have money deposited by particular persons that is fixed, and people are also cautious about spending because of the financial crisis, thus money movements in marketplaces are minimal these days. The government is unable to invest money on the market and reassure its citizens that everything is alright,” he says. “To stimulate the economy, the government should increase its development expenditure, which injects money into the market.”

The 16th conference of the World Social Forum is taking place in Nepal for the first time with the slogan 'Another world is possible'.

The organizing committee of the World Social Forum Nepal has organized a global announcement program about the event taking place in the open theater from February 15 to 19, 2024. 

On the occasion, an intercontinental youth forum and a parliamentary forum will be organized, said Sushil BK, coordinator of Media and Communication Group, the World Social Forum Nepal.

The forum is free and open for exchanging ideas and experiences on an alternative to neoliberalism. It started from Porte Alegre in Brazil in 2001 in the course of discussing an alternative to the impact of neoliberal globalization in the world two decades ago. 

The platform represents the collective power of the global movements and the civil society organizations that have united against neoliberalism, globalized capitalism, climate crisis, patriarchy, caste, discrimination based on color, racial discrimination and violence, discrimination and hatred against gender and sexual minority communities.

Non-governmental organizations including the NGO Federation of Nepal are coordinating the conference that runs parallelly.

Various 13 contemporary subjects have been selected for the session. The subjects to be discussed include: economic inequality and economic justice, labor, immigration, slavery and human trafficking; discrimination based on caste, work and descent, caste, ethnicity, indigenous nationalities, untouchability and all forms of discrimination, gender, sexuality, gender-based violence and identity, land, agriculture, food sovereignty, agricultural ecosystem, energy and natural resources;  peace, conflict, war, acquisition, displacement and security; education, art and culture, communication, social networks and media, digital equality; democracy, human rights, authoritarianism, law and justice; health, social protection and equality; climate, environment, equitable transformation, habitat and sustainable development; women, children, youth, the elderly and persons with disabilities and social movements, the place of citizens and the future of the world social platform.

Expressing their solidarity, representatives including Prof Aananda Kumar from India and Dr Uddhav Pyakurel from Nepal have extended their best wishes for the success of the event.