Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land…
Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land…
May 5: The government has again kept its trend of not spending a large part of the capital budget this time as…
May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign…
April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the…
April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest…
April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in…
April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year.…
April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in…
April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent.…
April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate…
April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector.…
April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank…
April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other.…
April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the…
April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB).…
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', 'content' => '<p><br /> </p> <p><span style="font-size:18px">December: 9 Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land acquisition. </span></p> <p><span style="font-size:18px">The government had established the Special Economic Zone (SEZ) along Birgunj-Pathlaiya Industrial Corridor in Simara with the vision to promote export industry sector in 2062 BS. The zone, however, has failed to entice investors and industrialists.</span></p> <p><span style="font-size:18px"> According to Birgunj Chapter of Federation of Nepalese Chamber of Commerce and Industry Chairman Subodh Kumar Gupta, exorbitant rent for the land, and unrealistic export quantity criteria to be eligible to rent the land inside the zone have driven investors away from investing in the SEZ. </span></p> <p><span style="font-size:18px">Investors and entrepreneurs demanded that SEZ should accord priority to industries that want to open industries focusing on the domestic market as Nepal’s export trade has failed to become competitive due to topography and high production cost. </span></p> <p><span style="font-size:18px">“Current business trend and tendency are quite different from the past. Time has come to change export with import replacement”, Bara-Parsa Industry Association Vice-chair Binay Shah said “Such infrastructure should be prioritized for industries with vision to promote import replacement”. </span></p> <p><span style="font-size:18px">Industries established in the special economic zone should export sixty per cent of their total production. Earlier, provision was even tougher. SEZ industries would have to export sixty per cent of their goods in the first year of their establishment itself. </span></p> <p><span style="font-size:18px">Since the economic zone could not lure any investors, the provision to export goods and commodities was revised. Now, the industries in SEZ will have to export 20 per cent, 40 per cent and 60 per cent in the first, second and remaining years with the start of the production. </span></p> <p><span style="font-size:18px">Chairman Gupta has urged the government to lower export quantity provision from 60 per cent to 25 per cent out of the total production. “Land rent was decreased from Rs 20 to Rs 10 per square. But, it is still expensive”, Gupta said adding “We have asked the government to lower the land rent to Rs 5 per square”. </span><br /> </p> <p><span style="font-size:18px">The government has exempted income tax for industries established in the SEZ for two years. The private sector, however, wants tax waive for 10 years. If income tax exemption is increased for 10 years, industries will be attracted to the SEZ, said Bara-Parsa Industry Association Vice-chair Hari Gautam. </span></p> <p><span style="font-size:18px">Investors have urged the government to provide all facilities through one-window system in the special economic zone. “Investors have shown no interest to the SEZ due to administrative hassles. So, all facilities and services should be provided through one window system”, said Gautam</span></p> <p><span style="font-size:18px">Despite frequent calls, the Special Economic Zone Authority has not received enough proposals for the establishment of industries. Industrialists and investors along the Bara-Parsa Corridor say that SEZ should be allowed to establish all kinds of industries as land acquisition had become tough and rent had gone expensive along the corridor. </span></p> <p><span style="font-size:18px">“Entrepreneurs and industrialists have a hard time getting land along the Bara-Parsa Corridor. But, the SEZ has not come into use for a long time. Thus, other industries should be allowed to establish their businesses even by changing criteria and standards in the SEZ”, Vice-chair Gautam added. </span></p> <p><span style="font-size:18px">Simara Special Economic Zone is spread in 833 bigaha land. The government had prepared a garment processing zone in the SEZ a few years back. Unfortunately, the garment processing zone was scrapped after investors did not show any interest. </span></p> ', 'published' => true, 'created' => '2022-12-09', 'modified' => '2022-12-09', 'keywords' => '', 'description' => '', 'sortorder' => '16225', 'image' => '20221209075327_collage.jpg', 'article_date' => '2022-12-09 07:46:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '42' ) ), (int) 1 => array( 'Article' => array( 'id' => '15219', 'article_category_id' => '274', 'title' => 'Government Needs to Spend Rs 754 billion in 2 Months', 'sub_title' => '', 'summary' => 'May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well. With only two months left for the current fiscal year to end, the government has not been able to spend almost half of the budget allocated for this FY.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Despite an increase in current expenditure, the government has not been able to spend the capital budget. According to the Financial General Comptrollers’ Office, which keeps track of government expenditure and revenue, the government had passed a budget of Rs 1.632 trillion for the current fiscal year while it has so far spent only Rs 878 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">With two months left in the current fiscal year, the government is yet to spend Rs 754 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government, which initially announced a budget of Rs 16.32 trillion, had downsized the budget during the mid-term review after it became clear that the government would not be able to achieve its target.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has spent only half of the budget allocated in the first ten months of the current fiscal year and its seems implausible to spend the remaining amount in the next two months. The current expenditure is likely to increase further. As the country is engaged in elections, the current expenditure is expected to increase this year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has already spent Rs 693 billion out of the total current expenditure of Rs 1065 billion for this year. The government will have to spend more than Rs 372 billion in the next two months under this heading.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Development spending weak</span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The last four months of a fiscal year (mid-April to mid-July) are the season for spending capital (development) budget in Nepal. However, there has not been any encouraging expenditure this time around. According to the FCGO, more than Rs 378 billion has been allocated for capital expenditure in the current fiscal year’s budget, but only Rs 111 billion has been spent so far.</span></span></span></span></p> <p> </p> <p><br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-05-05', 'modified' => '2022-05-05', 'keywords' => '', 'description' => '', 'sortorder' => '14961', 'image' => '20220505012709_budget new.jpg', 'article_date' => '2022-05-05 13:26:21', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15204', 'article_category_id' => '274', 'title' => 'Government Banks Acquiring Loans in Foreign Currency ', 'sub_title' => '', 'summary' => 'May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance has given permission to Rastriya Banijya Bank to acquire foreign loans up to US $100 million. Earlier, Nepal Rastra Bank had made arrangements only for private banks to bring foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief of the Financial Sector Management and Institutional Coordination Division of the Ministry of Finance, Ramesh Kumar KC, said that the banks can move ahead with the process of taking foreign loans with the approval of MoF. According to RBB, it is preparing to take the loan in two installments. The bank has also stated that it will bring loan by issuing international bids. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief Executive Officer of RBB Kiran Kumar Shrestha said that the process of taking loan on needs basis will start from this month. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, RRB has not acquired any loan from abroad so far. This is the first time it is about to take loan. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma had said that he would help the banks to acquire loans. It is believed that this will resolve the liquidity crisis in the banking system and the deepening problem of foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Nine financial institutions had acquired foreign loans three years ago due to the liquidity crisis. Mega Bank, Sunrise Bank, Laxmi Bank, Machhapuchhre Bank, Global IME Bank and NMB Bank are the commercial banks that have acquired loans from abroad. Similarly, last year, Nirdhan Utthan, RMDC and Manushi Microfinance had also acquired foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">As the liquidity crunch deepens, commercial banks and microfinances are currently preparing to bring in loans from abroad. Global IME Bank has entered into an agreement with CDC Group, a UK-based development finance institution, to bring in funds from abroad. As there was a shortage of investable money in the market, the central bank had made an arrangement in March/April 2018 for banks and financial institutions to bring loans in convertible foreign currency from abroad. Earlier, NMB Bank had taken a loan from IFC and Laxmi Bank had brought foreign loan from Doha Bank, Dubai. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Banks are allowed to borrow up to 100 percent of their primary capital from foreign banks. Banks can invest that loan in renewable energy, production and transmission lines, physical infrastructure such as roads, tunnels, airports, cable cars, bridges, tourism, agriculture, small and medium enterprises, manufacturing industries as well as microfinance. </span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-05-02', 'modified' => '2022-05-02', 'keywords' => '', 'description' => '', 'sortorder' => '14946', 'image' => '20220502064636_Banks.jpg', 'article_date' => '2022-05-02 18:46:01', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15182', 'article_category_id' => '274', 'title' => 'Economy at the Crossroads: Former Governor', 'sub_title' => '', 'summary' => 'April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads. He made such remark during the 67</span></span><sup><span style="font-size:7.0pt"><span style="font-family:"Times New Roman","serif"">th</span></span></sup><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif""> anniversary of Nepal Rastra Bank. He also stated that there are problems with the economy of the nation and that the government is failing to carry out its responsibilities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, the trade deficit has increased, balance of payments disturbed, foreign exchange reserves have been declining and current account is in a deficit. Rawal said that such facts should not be hidden but rather a collective effort is needed to normalize the situation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the global economy itself is in turmoil, Rawal said that no single person should be held responsible for the current economic crisis of the nation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He argued that excessive imports disturbed the balance of payments.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He suggested that all the concerned authorities should work in coordination with each other in order to overcome the issues seen in the nation’s economy. Dr. Rawal stated that Maha Prasad Adhikai received justice just like him when he was suspended as the governor 20 years back.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said that some of the negative effects of world trade have also affected Nepal's economy.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Former Governor Rawal said that giving priority to local production can help Nepal's economy during the current crisis.</span></span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-28', 'modified' => '2022-04-28', 'keywords' => '', 'description' => '', 'sortorder' => '14924', 'image' => '20220428021318_economic crisis.jpg', 'article_date' => '2022-04-28 14:12:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15176', 'article_category_id' => '274', 'title' => 'FNCCI Urges Government to Avail Loan for Productive Sector at 2 Percent Interest Rate ', 'sub_title' => '', 'summary' => 'April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">As the budget announcement for the upcoming fiscal year (FY 2022/23) is approaching, the federation has suggested the government to adopt export-oriented policy and to end undeclared power curs faced by the industrial sector.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation put forward those suggestions during a pre-budget discussion organized on Tuesday. On the occasion, FNCCI vice president Dinesh Shrestha said that concrete reforms were needed in the revenue system. He said that 80 percent of the taxpayers at present have paid only 20 percent of the total tax. According to Shrestha, the government should create a favorable environment for paying taxes and this would prevent tax evasion. "There has never been a study on how much taxes should be raised," he said, "It is necessary now." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">On the occasion, FNCCI Tax and Revenue Committee Chairman Sandeep Kumar Agrawal presented the paper on behalf of the FNCCI. He stressed on the need to come up with short, mid and long term plans to increase capital and for import substitution. He claimed that the prices of commodities have gone up worldwide and the rate of imports will continue to go up. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">"We have estimated that the remittance inflow will be Rs 1 trillion this year," he said, "Apart from this, 30 to 40 percent of the remittances are still coming through informal channels, and an attractive policy is needed to bring it through the formal channels." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation has suggested revising the Nepal Integrated Trade Strategy (NTIS) for export promotion. Stating that the current arrangement of export refinancing is impractical, the federation asked to maintain the term of such loan for at least 3 years. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The private sector has demanded cash incentives for shoe and sole manufacturers. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Stating that the exporters have to go to the central bank and other banks to get the cash subsidy for export, Agrawal demanded the money to be transferred to their account as soon as the export is done. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the federation, there are many problems such as environmental impact assessment for the establishment of industries. While declaring industrial villages, the FNCCI has suggested the government to take into consideration the situation after decades. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Furthermore, the federation has also demanded to bring a policy of giving tariff exemption to those who consume more energy. The suggestion has also laid emphasis on providing cheap electricity to the export-oriented industries. In addition, it has been mentioned that skilled manpower has to be imported from outside while the manpower produced by the Council for Technical Education and Vocational Training (CTEVT) have not been linked with the entrepreneurs. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-27', 'modified' => '2022-04-27', 'keywords' => '', 'description' => '', 'sortorder' => '14918', 'image' => '20220427023224_budget new.jpg', 'article_date' => '2022-04-27 14:31:45', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15172', 'article_category_id' => '274', 'title' => 'IMF Projects Nepal’s Economy to Grow by 4.1 Percent in 2022', 'sub_title' => '', 'summary' => 'April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The IMF published its report ‘World Economic Outlook’ which states that Nepal’s economy will grow by 4.1 percent in 2022 after suffering a slowdown to 2.1 percent in 2021 due to the Covid-19 pandemic.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that Nepal’s economy is projected to grow by 6.1 percent in 2023.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the war in Ukraine, a resurgent pandemic, and tightening global financial conditions, according to IMF.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation,” states the report. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to IMF, fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Interest rates are expected to rise as central banks tighten policy, exerting pressure on emerging market and developing economies. Moreover, many countries have limited fiscal policy space to cushion the impact of the war on their economies, IMF further said.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies—1.8 and 2.8 percentage points higher than projected last January.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential, the report added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">With a few exceptions, employment and output will typically remain below pre-pandemic trends through 2026. Scarring effects are expected to be much larger in emerging market and developing economies than in advanced economies—reflecting more limited policy support and generally slower vaccination—with output expected to remain below the pre-pandemic trend throughout the forecast horizon.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-26', 'modified' => '2022-04-26', 'keywords' => '', 'description' => '', 'sortorder' => '14914', 'image' => '20220426051733_imf.jpg', 'article_date' => '2022-04-26 17:16:47', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15162', 'article_category_id' => '274', 'title' => 'MoF holds Budget Discussion with Education and Health Ministries', 'sub_title' => '', 'summary' => 'April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. The Ministry of Finance discussed the programmes proposed within budget ceiling with both the ministries.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma suggested the concerned ministry to include such programmes in the budget that would prevent the tendency of school drop-out rate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Most of the students enrolled in grade 1 tend to drop out of school before even reaching grade 5. The number of students in higher classes is even lower,” said Minister Sharma, adding, “Let’s prepare the budget and introduce programs to determine the cause why students drop out of the school and create the environment for the students to not drop out.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He also remarked that there is a need to move towards digital technology to change the way of learning with time. He instructed the concerned authorities to start a programmes to make use of digital technology for teaching in some schools from the upcoming fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the establishment of IT colleges is necessary, Sharma said that a budget should be allocated for that as well. Sharma said, “There are many programmes that failed to show effective results despite continuous budget allocation. Therefore, we should prepare the budget by focusing on programmes that have good return.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the meeting, Minister for Education Devendra Poudel emphasized the need of programmess to ensure quality education, stating that there will be chaos everywhere if the education lags behind. He said that the development of the country will also be supported by better education.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Vice Chairman of the National Planning Commission, Biswo Nath Poudel, said that the compulsion for students to go to school by travelling a long distance should be removed. He said that the tendency to study with government’s money and going to work abroad after the completion of studies should also be discouraged. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the meeting with the Ministry of Health and Population on Sunday, Finance Minister Janardan Sharma said that it is necessary to formulate the budget in such a way as that it would end the compulsion for poor people to live with diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He requested to propose budget and programmes to expand the services of Patan Institute of Health Sciences and Tribhuvan University Teaching Hospital, Maharajgunj to other places as well.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said the upcoming budget will address the issue of health insurance reaching out to the poor families, improving maternity services, creating a situation where people do not have to go abroad for treatment of complex diseases including kidney and liver diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the discussion, Health Minister Birodh Khatiwada said that arrangements should be made for the posts of doctors and equipment in 500 to 1,500-bed hospitals.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-25', 'modified' => '2022-04-25', 'keywords' => '', 'description' => '', 'sortorder' => '14904', 'image' => '20220425020619_finance_ministry_copy1.jpg', 'article_date' => '2022-04-25 14:05:24', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15137', 'article_category_id' => '274', 'title' => 'CNI Study Concludes Nepal’s Economy is not in Crisis', 'sub_title' => '', 'summary' => 'April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">A study conducted by CNI has concluded that the economy is not in crisis. CNI has also released a study report claiming that the economy is not in crisis. Various economists have also commented that the economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">There have been comments that the lack of liquidity in the country's banking system, rising trade deficit and balance of payments deficit, declining foreign exchange reserves, rising inflation, and lack of energy and fuel have all contributed to the crisis. Some have even analyzed that Nepal is facing an economic crisis like Sri Lanka. However, according to the CNI report, Nepal's economy is much better than that of Sri Lanka.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI claims that data suggest there is no economic crisis. However, the report states that there is a need to move forward with restraint.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At present, the size of Nepal's public debt is 40.5 per cent of the gross domestic product (GDP). Sri Lanka's national debt is 111 per cent of GDP.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Nepal has 6.7 months of foreign exchange reserves to support imports of goods and services. Sri Lanka does not have enough foreign exchange reserves to sustain one month of goods and services. Sri Lanka is unable to import even basic commodities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Inflation in Nepal is 7 per cent while it has grown to 25 per cent in Sri Lanka. In this case, Nepal's economy should not be compared with Sri Lanka, the report said. On top of that, CNI claimed that the overall economy is not in crisis. The report states that the economy does not appear to be in crisis in the last three months of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the first five months of the current fiscal year, the monthly average import was Rs 167 billion. In the following three months it stood at Rs 156 billion in January, February and March. This suggests that imports have declined recently.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, foreign exchange reserves were negative by 3.24 per cent in the first five months of the current fiscal year. In the following three months, foreign exchange reserves declined by only 1.53 per cent.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The capital budget of Rs 28.40 billion was spent in the first five months of the current fiscal year. After that, a capital budget of Rs. 48.70 billion has been spent in the last three months.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The study also showed that the inflow of remittances has increased in the last three months. In the first five months of the current fiscal year, the monthly remittance was Rs 77.70 billion. In the next three months, remittances have reached an average of Rs 80.80 billion per month.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, arrival of tourists has also increased in the last three months. The average monthly tourist arrivals in the first five months of the current fiscal year were 17,757. In the next three months, an average of 26,249 foreign tourists arrived monthly.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to CNI Chairman Bishnu Agrawal, there is no economic crisis in Nepal based on these statistics. However, he acknowledged that the numbers were not enough and we need to be cautious.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI made the report public at a press conference on Tuesday.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">It has been said that there is an economic crisis in Nepal. But, looking at the statistics, it doesn't look like that. Foreign countries have reserves enough to sustain imports for three months of imports in foreign countries. Even though we have enough reserves to support imports for more than six months, there are comments that there is an economic crisis, which is not true," Agrawal opined. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At the same time, the steps taken by the government to resolve the crisis have created more problems, he added.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI concluded that stopping imports is not the answer. It has been said that a special initiative should be taken to increase production, marketing and consumption of domestic goods by managing the import at present. Stating that Nepal is in an economic crisis could create panic and destabilize the market, shared CNI Vice President Anuj Agrawal.</span></span></span></span></p> <p><br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-20', 'modified' => '2022-04-21', 'keywords' => '', 'description' => '', 'sortorder' => '14879', 'image' => '20220420051123_ecomonic crisis.jpg', 'article_date' => '2022-04-20 17:10:38', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 8 => array( 'Article' => array( 'id' => '15126', 'article_category_id' => '274', 'title' => 'Finance Ministry Issues Directive to Reduce Budget for Fuel by 20 Percent ', 'sub_title' => '', 'summary' => 'April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Issuing a notice on Monday, the Ministry of Finance directed the concerned government agencies to reduce the budget allocated under the heading of fuel for the current fiscal year by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The MoF clarified that the measure taken to reduce fuel consumption would however not be applicable for development projects, to maintain law and order, and for most essential services as well as the upcoming local level election. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the growing trade deficit, decline in inflow of remittance and foreign currency reserves have mounted pressure on national economy, the ministry said that the government on April 13 decided to cut budget allocated under the heading of fuel consumption. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">According to the ministry, the government decided to reduce the budget allocated under the heading of administration and fuel consumption by 10 percent each to promote the consumption of clean energy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The measure to cut-off fuel would remain effective up to July 15, informed Finance Ministry Spokesperson Dhundi Prasad Niraula. The Office of the Prime Minister and Council of Ministers and the Ministry of Federal Affairs and General Administration would monitor whether the decision has been implemented or not. -- RSS</span></span></span></p> ', 'published' => true, 'created' => '2022-04-19', 'modified' => '2022-04-19', 'keywords' => '', 'description' => '', 'sortorder' => '14868', 'image' => '20220419080850_Finmin.jpg', 'article_date' => '2022-04-19 08:08:19', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 9 => array( 'Article' => array( 'id' => '15116', 'article_category_id' => '274', 'title' => 'Government Agrees to Accept Financial Assistance of Rs 98 Billion', 'sub_title' => '', 'summary' => 'April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors.', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors. The government has decided to accept USD 659 million (about Rs 80 billion) from the United States Agency for International Development (USAID) and a concessional loan of USD 150 million (about Rs 18 billion) from the World Bank Group's International Development Association.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance informed that the government has already started its homework to receive the US grant. The grant will be received by Nepal within 5 years to be spent in various sectors. According to a Finance Ministry official, the government and USAID are preparing to sign the agreement after the cabinet decided to accept the grant.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the International Financial Assistance Coordination Division of the Ministry of Finance, the grant will be spent mainly on education, health, sustainable energy, agriculture and capacity building of the private sector. The projects are yet to be finalized even though the area for spending the grant that Nepal is about to receive has already been decided.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Ishwori Aryal, joint secretary at the Ministry of Finance, said that the grant agreement will be signed between the two sides after the government and the USAID decide on the projects. According to Aryal, work is underway to select relevant projects.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The grant amount will be received within five years at the rate of 132 million dollars (about Rs 16 billion) per year. If the agreement is signed this year, the grant will start coming from the next fiscal year and the full grant will come by 2027.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">USAID spent 683 million dollars in Nepal from 2016 to 2021. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Although some analysts say that the current economic crisis will be alleviated if the government accepts such large loans and grants, finance ministry officials contradict the viewpoint.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the Ministry of Finance, this loan is agreed upon to support the programs in the budget. Its interest rate will be less than 1 percent per annum.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The loan, which is planned to be spent on sectors including institutional capacity improvement and implementation of federalism, will be credited to the country’s finance as soon as the agreement is signed. The government will make expenditures from the credited amount accordingly.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the officials of the ministry of finance, as only the decision to accept grants and loans is made, this amount will not come to the market immediately. They added that although its effects will be long lasting, it will not help to resolve the immediate crisis.</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-17', 'modified' => '2022-04-17', 'keywords' => '', 'description' => '', 'sortorder' => '14858', 'image' => '20220417031556_finance_ministry_copy1.jpg', 'article_date' => '2022-04-17 15:15:16', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 10 => array( 'Article' => array( 'id' => '15110', 'article_category_id' => '274', 'title' => '2078 Marred by Liquidity Crisis ', 'sub_title' => '', 'summary' => 'April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. As economic activities picked up pace immediately after the Covid-19 pandemic subsided, banks and financial institutions aggressively pushed for credit expansion. However, as deposit collection did not grow as compared to the credit flow of banks, there was a liquidity crisis in the banking system. As a result, at the end of the year, the new credit flow of banks and financial institutions has almost stopped. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Deposits in banks increased by Rs 4.43 billion from Rs 4.45 trillion in 2077 to Rs 4.91 trillion in 2078. According to Nepal Rastra Bank, credit flow increased by Rs 678.77 billion from Rs 4.022 trillion to Rs 4.78 trillion. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The main reason for the liquidity crisis in banks and financial institutions was the change in policy of NRB. The NRB removed the provision of maintaining 85 percent capital, loan and deposit (CCD) ratio in the banks through the monetary policy of the current Fiscal Year (FY 2078/79) and implemented the provision of maintaining 90 percent credit-deposit (CD) ratio. Due to this reason, the ability of banks to expand credit flow decreased. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, as most of the credit was provided for imports, the country's foreign exchange earnings, remittances, tourism and other sectors were affected, and the deposits could not increase. Due to this, the financial sector is facing liquidity crisis in the market. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Dispute between finance minister and governor</strong> </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The year 2078 will also be remembered for the suspension of Governor Maha Prasad Adhikari. With the tension between Finance Minister Janardan Sharma and Governor Maha Prasad Adhikari boiling during the announcement of monetary policy for the current FY, the ministry has started an investigation against the governor for not cooperating with the government. The governor has been suspended since the investigation began. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The government has been criticized for taking political action against the governor who was seeking economic reform. Due to the dispute between the finance minister and the governor, the leadership of NRB is now in the hands of the acting Governor. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Cash margin for LC</strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Although the credit flow of banks and financial institutions increased, it shifted to the unproductive sector, which in turn posed a challenge to the financial sector. Due to this pressure, NRB tightened its grip on equity loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The central bank has discouraged investment in real estate and transportation sectors by increasing the risk burden of these loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, the central bank, which has implemented provision of 100 percent cash margin for opening LCs to reduce the import of goods under 47 different types of harmonic codes, has verbally instructed the banks not to open LCs until the situation improves. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14852', 'image' => '20220415125258_Liquidity.jpg', 'article_date' => '2022-04-15 12:52:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 11 => array( 'Article' => array( 'id' => '15107', 'article_category_id' => '274', 'title' => 'Banks' Interest on Loans hits Double Digit', 'sub_title' => '', 'summary' => 'April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The report states that the interest on loans increased due to the increase in interest on deposits as well as the increasing operational cost of the banks. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest rate on loans of banks in the month of Falgun (mid-February to mid-March) was 10.5 percent, the report states adding that the interest on loans reached double digit in the month of Magh (mid-January to mid-February).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest on loans was 8.48 percent during the first month of the current fiscal year. The banks were involved in an unhealthy competition of increasing the interest on deposits to attract customers following the liquidity crunch in the banking system. As a result, the interest on loans also increased.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The interest on deposits have almost doubled in the current fiscal year. According to the central bank, the average interest on deposits was 4.76 percent in the first month of the current fiscal year (mid-July to mid-August) which increased to 8.73 percent in the eighth month ie Falgun (mid-February to mid-March).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks were involved in an unhealthy competition of increasing interest on deposits to attract customers since mid-October to mid-November. The central bank had to intervene due to such competition among the banks. Issuing a circular on October 19, the central bank instructed the banks not to change interest rate more than 10 percent at a time.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NRB’s Deputy Spokesperson Narayan Prasad Pokharel says that the interest rate remained under control due to the central bank’s intervention.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">“Had the central bank not issued such directive, the interest on loans would have reached 18 percent by now,” said Pokharel, adding, “The interest rates on deposits as well as loans remained under control due to the NRB’s intervention.”</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Commercial banks are trying to keep the interest rate stable following a gentleman’s agreement among members of Nepal Bankers’ Association, an umbrella body of the CEOs of commercial banks.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks had decided to increase the interest on loans by 10 percent in mid-February. But the bankers agreed to maintain the same rate for at least two months. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The maximum interest on deposits at present is 11.3 percent on fixed deposits. Banks can increase the interest on fixed deposits by an additional one percentage point in case the deposit is collected through remittance.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14849', 'image' => '20220415114234_interest-rates-e1541025967190.jpg', 'article_date' => '2022-04-15 11:41:33', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 12 => array( 'Article' => array( 'id' => '15102', 'article_category_id' => '274', 'title' => 'Chamber of Industry Morang Warns of Imminent Economic Crisis', 'sub_title' => '', 'summary' => 'April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. The chamber also warned that the overall economic indicators were pointing towards an imminent crisis.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Suyash Pyakurel, chairman of the chamber, said that the liquidity crisis in the financial sector since a long time, rising interest rates, the Ukraine crisis, rising prices in international markets and the internal situation in the country are all leading the overall economy towards a crisis. Stating that there is no effective coordination among the regulatory bodies when it comes to management of liquidity, foreign exchange reserves and facilitation of import and export, he emphasized on the need to be aware of the ongoing situation.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Issuing a statement, the Chamber of Industry Morang demanded the government to find a possible solution to the crisis by removing the misunderstanding between the intergovernmental bodies. The chamber also stated that it is ready to provide assistance from the private sector to bring the crisis-oriented economy back on track.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-14', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14844', 'image' => '20220414025529_Chamber of industries morang new.jpg', 'article_date' => '2022-04-14 14:54:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 13 => array( 'Article' => array( 'id' => '15099', 'article_category_id' => '274', 'title' => '‘Economy has not Spiraled out of Control’', 'sub_title' => '', 'summary' => 'April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claims.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claim. The reports of both the ministry and the central bank show that the economy is under stress but the situation has not gone out of control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to NRB, although inflation has increased of late other indicators are under control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">The latest data of the central bank shows that </span></span>the country’s gross foreign exchange reserves decreased 16.3 percent to Rs 1171 billion in mid-March 2022 from Rs 1399.03 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the Current Macroeconomic and Financial Situation Report of NRB</span></span>, of the total foreign exchange reserves, reserves held by NRB decreased 18.2 percent to Rs 1018.05 billion in mid-March 2022 from Rs 1244.63 billion in mid-July 2021. Likewise, reserves held by banks and financial institutions (except NRB) decreased 0.9 percent to Rs 152.95 billion in mid-March 2022 from Rs 154.39 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Based on the imports of eight months of 2021/22, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 7.4 months, and merchandise and services imports of 6.7 months, the report further states.</span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Former NRB Governor Dr Chiranjivi Nepal believes that the situation has not gone out of control. Speaking at an interaction in the capital on Tuesday, Dr Nepal said that the situation will normalize soon.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">On the other hand, the consumer price inflation stood at 7.14 percent in the eighth month of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to economist Chandra Mani Bhandari, price hike is the result of both internal and external factors. He says that the impact of Russia-Ukraine war has increased prices of petroleum products across the world resulting in inflation which has also affected Nepal.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the NRB report, Nepal’s current account remained at a deficit of Rs 462.93 billion in the first eight months of the current fiscal year. Such a deficit was Rs 151.42 billion in the corresponding period of the previous fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">During the review period, capital transfer decreased 41.2 percent to Rs 7 billion and net foreign direct investment (FDI) increased 60.0 percent to Rs 16.30 billion, the report said. In the same period of the previous year, capital transfer and net FDI amounted to Rs 11.91 billion and Rs 10.18 billion respectively.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Likewise, the Balance of Payments (BOP) remained at a deficit of Rs 258.64 billion in the review period against a surplus of Rs 68.01 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 2.17 billion in the review period against a surplus of 565.8 million in the same period of the previous year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the central bank’s report, total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14841', 'image' => '20220413044135_NRBnew.jpg', 'article_date' => '2022-04-13 16:40:49', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 14 => array( 'Article' => array( 'id' => '15098', 'article_category_id' => '274', 'title' => 'Import and Export Up Despite Measures Taken by NRB', 'sub_title' => '', 'summary' => 'April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). ', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). The central bank’s data show overall imports have increased despite taking measures to tighten imports of luxurious goods. Trade deficit has also increased despite increase in exports. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by the central bank on Tuesday states that merchandise exports increased 82.9 percent to Rs 147.75 billion during the review period. The country’s exports had increased 7.8 percent during the corresponding period of last fiscal year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, exports to India and other countries increased 104.2 percent and 29.1 respectively whereas exports to China decreased 11.0 percent. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that exports of palm oil, soybean oil, oil cakes, polyester yarn and thread, woolen carpets among others, increased whereas exports of cardamom, tea, herbs, wire, copper wire rod, among others, decreased in the review period.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports increased 38.6 percent to Rs 1308.73 billion compared to an increase of 2.1 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, imports from India, China and other countries increased 28.1 percent, 36.7 percent, and 75.4 percent respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Imports of petroleum products, medicine, crude palm oil, crude soybean oil, gold, among others, increased whereas imports of MS billet, cement, chemical fertilizer, pulses, molasses sugar, among others, decreased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Based on customs points, exports from Kanchanpur, Mechi, and Nepalgunj Customs Office decreased whereas exports from all the other major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the import side, imports from all the major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports from India by paying convertible foreign currency amounted Rs 147.03 billion. Such amount was Rs 121.36 billion in the same period of the previous year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 47.3 percent and 52.7 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.02 percent in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 32.3 percent, 0.5 percent and 67.2 percent of total exports respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the imports side, the share of intermediate goods remained 53.5 percent, capital goods 10.7 percent and final consumption goods remained 35.8 percent in the review period. Such ratios were 53.5 percent, 11.8 percent and 34.7 percent respectively in the same period of the previous year.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14840', 'image' => '20220413041951_Trade.jpg', 'article_date' => '2022-04-13 16:18:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ) ) $current_user = null $logged_in = falseinclude - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
Warning (2): simplexml_load_file() [<a href='http://php.net/function.simplexml-load-file'>function.simplexml-load-file</a>]: I/O warning : failed to load external entity "" [APP/View/Elements/side_bar.ctp, line 60]file not found!Code Context// $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/indexdata.xml';if(!$xml = simplexml_load_file($file)){$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp' $dataForView = array( 'articles' => array( (int) 0 => array( 'Article' => array( [maximum depth reached] ) ), (int) 1 => array( 'Article' => array( [maximum depth reached] ) ), (int) 2 => array( 'Article' => array( [maximum depth reached] ) ), (int) 3 => array( 'Article' => array( [maximum depth reached] ) ), (int) 4 => array( 'Article' => array( [maximum depth reached] ) ), (int) 5 => array( 'Article' => array( [maximum depth reached] ) ), (int) 6 => array( 'Article' => array( [maximum depth reached] ) ), (int) 7 => array( 'Article' => array( [maximum depth reached] ) ), (int) 8 => array( 'Article' => array( [maximum depth reached] ) ), (int) 9 => array( 'Article' => array( [maximum depth reached] ) ), (int) 10 => array( 'Article' => array( [maximum depth reached] ) ), (int) 11 => array( 'Article' => array( [maximum depth reached] ) ), (int) 12 => array( 'Article' => array( [maximum depth reached] ) ), (int) 13 => array( 'Article' => array( [maximum depth reached] ) ), (int) 14 => array( 'Article' => array( [maximum depth reached] ) ) ), 'current_user' => null, 'logged_in' => false ) $articles = array( (int) 0 => array( 'Article' => array( 'id' => '16484', 'article_category_id' => '274', 'title' => 'Prioritise Import Replacement Industries in SEZ : Private Sector ', 'sub_title' => '', 'summary' => 'Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land acquisition. ', 'content' => '<p><br /> </p> <p><span style="font-size:18px">December: 9 Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land acquisition. </span></p> <p><span style="font-size:18px">The government had established the Special Economic Zone (SEZ) along Birgunj-Pathlaiya Industrial Corridor in Simara with the vision to promote export industry sector in 2062 BS. The zone, however, has failed to entice investors and industrialists.</span></p> <p><span style="font-size:18px"> According to Birgunj Chapter of Federation of Nepalese Chamber of Commerce and Industry Chairman Subodh Kumar Gupta, exorbitant rent for the land, and unrealistic export quantity criteria to be eligible to rent the land inside the zone have driven investors away from investing in the SEZ. </span></p> <p><span style="font-size:18px">Investors and entrepreneurs demanded that SEZ should accord priority to industries that want to open industries focusing on the domestic market as Nepal’s export trade has failed to become competitive due to topography and high production cost. </span></p> <p><span style="font-size:18px">“Current business trend and tendency are quite different from the past. Time has come to change export with import replacement”, Bara-Parsa Industry Association Vice-chair Binay Shah said “Such infrastructure should be prioritized for industries with vision to promote import replacement”. </span></p> <p><span style="font-size:18px">Industries established in the special economic zone should export sixty per cent of their total production. Earlier, provision was even tougher. SEZ industries would have to export sixty per cent of their goods in the first year of their establishment itself. </span></p> <p><span style="font-size:18px">Since the economic zone could not lure any investors, the provision to export goods and commodities was revised. Now, the industries in SEZ will have to export 20 per cent, 40 per cent and 60 per cent in the first, second and remaining years with the start of the production. </span></p> <p><span style="font-size:18px">Chairman Gupta has urged the government to lower export quantity provision from 60 per cent to 25 per cent out of the total production. “Land rent was decreased from Rs 20 to Rs 10 per square. But, it is still expensive”, Gupta said adding “We have asked the government to lower the land rent to Rs 5 per square”. </span><br /> </p> <p><span style="font-size:18px">The government has exempted income tax for industries established in the SEZ for two years. The private sector, however, wants tax waive for 10 years. If income tax exemption is increased for 10 years, industries will be attracted to the SEZ, said Bara-Parsa Industry Association Vice-chair Hari Gautam. </span></p> <p><span style="font-size:18px">Investors have urged the government to provide all facilities through one-window system in the special economic zone. “Investors have shown no interest to the SEZ due to administrative hassles. So, all facilities and services should be provided through one window system”, said Gautam</span></p> <p><span style="font-size:18px">Despite frequent calls, the Special Economic Zone Authority has not received enough proposals for the establishment of industries. Industrialists and investors along the Bara-Parsa Corridor say that SEZ should be allowed to establish all kinds of industries as land acquisition had become tough and rent had gone expensive along the corridor. </span></p> <p><span style="font-size:18px">“Entrepreneurs and industrialists have a hard time getting land along the Bara-Parsa Corridor. But, the SEZ has not come into use for a long time. Thus, other industries should be allowed to establish their businesses even by changing criteria and standards in the SEZ”, Vice-chair Gautam added. </span></p> <p><span style="font-size:18px">Simara Special Economic Zone is spread in 833 bigaha land. The government had prepared a garment processing zone in the SEZ a few years back. Unfortunately, the garment processing zone was scrapped after investors did not show any interest. </span></p> ', 'published' => true, 'created' => '2022-12-09', 'modified' => '2022-12-09', 'keywords' => '', 'description' => '', 'sortorder' => '16225', 'image' => '20221209075327_collage.jpg', 'article_date' => '2022-12-09 07:46:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '42' ) ), (int) 1 => array( 'Article' => array( 'id' => '15219', 'article_category_id' => '274', 'title' => 'Government Needs to Spend Rs 754 billion in 2 Months', 'sub_title' => '', 'summary' => 'May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well. With only two months left for the current fiscal year to end, the government has not been able to spend almost half of the budget allocated for this FY.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Despite an increase in current expenditure, the government has not been able to spend the capital budget. According to the Financial General Comptrollers’ Office, which keeps track of government expenditure and revenue, the government had passed a budget of Rs 1.632 trillion for the current fiscal year while it has so far spent only Rs 878 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">With two months left in the current fiscal year, the government is yet to spend Rs 754 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government, which initially announced a budget of Rs 16.32 trillion, had downsized the budget during the mid-term review after it became clear that the government would not be able to achieve its target.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has spent only half of the budget allocated in the first ten months of the current fiscal year and its seems implausible to spend the remaining amount in the next two months. The current expenditure is likely to increase further. As the country is engaged in elections, the current expenditure is expected to increase this year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has already spent Rs 693 billion out of the total current expenditure of Rs 1065 billion for this year. The government will have to spend more than Rs 372 billion in the next two months under this heading.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Development spending weak</span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The last four months of a fiscal year (mid-April to mid-July) are the season for spending capital (development) budget in Nepal. However, there has not been any encouraging expenditure this time around. According to the FCGO, more than Rs 378 billion has been allocated for capital expenditure in the current fiscal year’s budget, but only Rs 111 billion has been spent so far.</span></span></span></span></p> <p> </p> <p><br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-05-05', 'modified' => '2022-05-05', 'keywords' => '', 'description' => '', 'sortorder' => '14961', 'image' => '20220505012709_budget new.jpg', 'article_date' => '2022-05-05 13:26:21', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15204', 'article_category_id' => '274', 'title' => 'Government Banks Acquiring Loans in Foreign Currency ', 'sub_title' => '', 'summary' => 'May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance has given permission to Rastriya Banijya Bank to acquire foreign loans up to US $100 million. Earlier, Nepal Rastra Bank had made arrangements only for private banks to bring foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief of the Financial Sector Management and Institutional Coordination Division of the Ministry of Finance, Ramesh Kumar KC, said that the banks can move ahead with the process of taking foreign loans with the approval of MoF. According to RBB, it is preparing to take the loan in two installments. The bank has also stated that it will bring loan by issuing international bids. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief Executive Officer of RBB Kiran Kumar Shrestha said that the process of taking loan on needs basis will start from this month. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, RRB has not acquired any loan from abroad so far. This is the first time it is about to take loan. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma had said that he would help the banks to acquire loans. It is believed that this will resolve the liquidity crisis in the banking system and the deepening problem of foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Nine financial institutions had acquired foreign loans three years ago due to the liquidity crisis. Mega Bank, Sunrise Bank, Laxmi Bank, Machhapuchhre Bank, Global IME Bank and NMB Bank are the commercial banks that have acquired loans from abroad. Similarly, last year, Nirdhan Utthan, RMDC and Manushi Microfinance had also acquired foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">As the liquidity crunch deepens, commercial banks and microfinances are currently preparing to bring in loans from abroad. Global IME Bank has entered into an agreement with CDC Group, a UK-based development finance institution, to bring in funds from abroad. As there was a shortage of investable money in the market, the central bank had made an arrangement in March/April 2018 for banks and financial institutions to bring loans in convertible foreign currency from abroad. Earlier, NMB Bank had taken a loan from IFC and Laxmi Bank had brought foreign loan from Doha Bank, Dubai. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Banks are allowed to borrow up to 100 percent of their primary capital from foreign banks. Banks can invest that loan in renewable energy, production and transmission lines, physical infrastructure such as roads, tunnels, airports, cable cars, bridges, tourism, agriculture, small and medium enterprises, manufacturing industries as well as microfinance. </span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-05-02', 'modified' => '2022-05-02', 'keywords' => '', 'description' => '', 'sortorder' => '14946', 'image' => '20220502064636_Banks.jpg', 'article_date' => '2022-05-02 18:46:01', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15182', 'article_category_id' => '274', 'title' => 'Economy at the Crossroads: Former Governor', 'sub_title' => '', 'summary' => 'April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads. He made such remark during the 67</span></span><sup><span style="font-size:7.0pt"><span style="font-family:"Times New Roman","serif"">th</span></span></sup><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif""> anniversary of Nepal Rastra Bank. He also stated that there are problems with the economy of the nation and that the government is failing to carry out its responsibilities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, the trade deficit has increased, balance of payments disturbed, foreign exchange reserves have been declining and current account is in a deficit. Rawal said that such facts should not be hidden but rather a collective effort is needed to normalize the situation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the global economy itself is in turmoil, Rawal said that no single person should be held responsible for the current economic crisis of the nation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He argued that excessive imports disturbed the balance of payments.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He suggested that all the concerned authorities should work in coordination with each other in order to overcome the issues seen in the nation’s economy. Dr. Rawal stated that Maha Prasad Adhikai received justice just like him when he was suspended as the governor 20 years back.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said that some of the negative effects of world trade have also affected Nepal's economy.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Former Governor Rawal said that giving priority to local production can help Nepal's economy during the current crisis.</span></span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-28', 'modified' => '2022-04-28', 'keywords' => '', 'description' => '', 'sortorder' => '14924', 'image' => '20220428021318_economic crisis.jpg', 'article_date' => '2022-04-28 14:12:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15176', 'article_category_id' => '274', 'title' => 'FNCCI Urges Government to Avail Loan for Productive Sector at 2 Percent Interest Rate ', 'sub_title' => '', 'summary' => 'April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">As the budget announcement for the upcoming fiscal year (FY 2022/23) is approaching, the federation has suggested the government to adopt export-oriented policy and to end undeclared power curs faced by the industrial sector.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation put forward those suggestions during a pre-budget discussion organized on Tuesday. On the occasion, FNCCI vice president Dinesh Shrestha said that concrete reforms were needed in the revenue system. He said that 80 percent of the taxpayers at present have paid only 20 percent of the total tax. According to Shrestha, the government should create a favorable environment for paying taxes and this would prevent tax evasion. "There has never been a study on how much taxes should be raised," he said, "It is necessary now." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">On the occasion, FNCCI Tax and Revenue Committee Chairman Sandeep Kumar Agrawal presented the paper on behalf of the FNCCI. He stressed on the need to come up with short, mid and long term plans to increase capital and for import substitution. He claimed that the prices of commodities have gone up worldwide and the rate of imports will continue to go up. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">"We have estimated that the remittance inflow will be Rs 1 trillion this year," he said, "Apart from this, 30 to 40 percent of the remittances are still coming through informal channels, and an attractive policy is needed to bring it through the formal channels." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation has suggested revising the Nepal Integrated Trade Strategy (NTIS) for export promotion. Stating that the current arrangement of export refinancing is impractical, the federation asked to maintain the term of such loan for at least 3 years. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The private sector has demanded cash incentives for shoe and sole manufacturers. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Stating that the exporters have to go to the central bank and other banks to get the cash subsidy for export, Agrawal demanded the money to be transferred to their account as soon as the export is done. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the federation, there are many problems such as environmental impact assessment for the establishment of industries. While declaring industrial villages, the FNCCI has suggested the government to take into consideration the situation after decades. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Furthermore, the federation has also demanded to bring a policy of giving tariff exemption to those who consume more energy. The suggestion has also laid emphasis on providing cheap electricity to the export-oriented industries. In addition, it has been mentioned that skilled manpower has to be imported from outside while the manpower produced by the Council for Technical Education and Vocational Training (CTEVT) have not been linked with the entrepreneurs. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-27', 'modified' => '2022-04-27', 'keywords' => '', 'description' => '', 'sortorder' => '14918', 'image' => '20220427023224_budget new.jpg', 'article_date' => '2022-04-27 14:31:45', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15172', 'article_category_id' => '274', 'title' => 'IMF Projects Nepal’s Economy to Grow by 4.1 Percent in 2022', 'sub_title' => '', 'summary' => 'April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The IMF published its report ‘World Economic Outlook’ which states that Nepal’s economy will grow by 4.1 percent in 2022 after suffering a slowdown to 2.1 percent in 2021 due to the Covid-19 pandemic.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that Nepal’s economy is projected to grow by 6.1 percent in 2023.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the war in Ukraine, a resurgent pandemic, and tightening global financial conditions, according to IMF.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation,” states the report. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to IMF, fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Interest rates are expected to rise as central banks tighten policy, exerting pressure on emerging market and developing economies. Moreover, many countries have limited fiscal policy space to cushion the impact of the war on their economies, IMF further said.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies—1.8 and 2.8 percentage points higher than projected last January.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential, the report added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">With a few exceptions, employment and output will typically remain below pre-pandemic trends through 2026. Scarring effects are expected to be much larger in emerging market and developing economies than in advanced economies—reflecting more limited policy support and generally slower vaccination—with output expected to remain below the pre-pandemic trend throughout the forecast horizon.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-26', 'modified' => '2022-04-26', 'keywords' => '', 'description' => '', 'sortorder' => '14914', 'image' => '20220426051733_imf.jpg', 'article_date' => '2022-04-26 17:16:47', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15162', 'article_category_id' => '274', 'title' => 'MoF holds Budget Discussion with Education and Health Ministries', 'sub_title' => '', 'summary' => 'April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. The Ministry of Finance discussed the programmes proposed within budget ceiling with both the ministries.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma suggested the concerned ministry to include such programmes in the budget that would prevent the tendency of school drop-out rate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Most of the students enrolled in grade 1 tend to drop out of school before even reaching grade 5. The number of students in higher classes is even lower,” said Minister Sharma, adding, “Let’s prepare the budget and introduce programs to determine the cause why students drop out of the school and create the environment for the students to not drop out.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He also remarked that there is a need to move towards digital technology to change the way of learning with time. He instructed the concerned authorities to start a programmes to make use of digital technology for teaching in some schools from the upcoming fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the establishment of IT colleges is necessary, Sharma said that a budget should be allocated for that as well. Sharma said, “There are many programmes that failed to show effective results despite continuous budget allocation. Therefore, we should prepare the budget by focusing on programmes that have good return.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the meeting, Minister for Education Devendra Poudel emphasized the need of programmess to ensure quality education, stating that there will be chaos everywhere if the education lags behind. He said that the development of the country will also be supported by better education.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Vice Chairman of the National Planning Commission, Biswo Nath Poudel, said that the compulsion for students to go to school by travelling a long distance should be removed. He said that the tendency to study with government’s money and going to work abroad after the completion of studies should also be discouraged. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the meeting with the Ministry of Health and Population on Sunday, Finance Minister Janardan Sharma said that it is necessary to formulate the budget in such a way as that it would end the compulsion for poor people to live with diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He requested to propose budget and programmes to expand the services of Patan Institute of Health Sciences and Tribhuvan University Teaching Hospital, Maharajgunj to other places as well.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said the upcoming budget will address the issue of health insurance reaching out to the poor families, improving maternity services, creating a situation where people do not have to go abroad for treatment of complex diseases including kidney and liver diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the discussion, Health Minister Birodh Khatiwada said that arrangements should be made for the posts of doctors and equipment in 500 to 1,500-bed hospitals.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-25', 'modified' => '2022-04-25', 'keywords' => '', 'description' => '', 'sortorder' => '14904', 'image' => '20220425020619_finance_ministry_copy1.jpg', 'article_date' => '2022-04-25 14:05:24', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15137', 'article_category_id' => '274', 'title' => 'CNI Study Concludes Nepal’s Economy is not in Crisis', 'sub_title' => '', 'summary' => 'April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">A study conducted by CNI has concluded that the economy is not in crisis. CNI has also released a study report claiming that the economy is not in crisis. Various economists have also commented that the economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">There have been comments that the lack of liquidity in the country's banking system, rising trade deficit and balance of payments deficit, declining foreign exchange reserves, rising inflation, and lack of energy and fuel have all contributed to the crisis. Some have even analyzed that Nepal is facing an economic crisis like Sri Lanka. However, according to the CNI report, Nepal's economy is much better than that of Sri Lanka.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI claims that data suggest there is no economic crisis. However, the report states that there is a need to move forward with restraint.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At present, the size of Nepal's public debt is 40.5 per cent of the gross domestic product (GDP). Sri Lanka's national debt is 111 per cent of GDP.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Nepal has 6.7 months of foreign exchange reserves to support imports of goods and services. Sri Lanka does not have enough foreign exchange reserves to sustain one month of goods and services. Sri Lanka is unable to import even basic commodities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Inflation in Nepal is 7 per cent while it has grown to 25 per cent in Sri Lanka. In this case, Nepal's economy should not be compared with Sri Lanka, the report said. On top of that, CNI claimed that the overall economy is not in crisis. The report states that the economy does not appear to be in crisis in the last three months of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the first five months of the current fiscal year, the monthly average import was Rs 167 billion. In the following three months it stood at Rs 156 billion in January, February and March. This suggests that imports have declined recently.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, foreign exchange reserves were negative by 3.24 per cent in the first five months of the current fiscal year. In the following three months, foreign exchange reserves declined by only 1.53 per cent.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The capital budget of Rs 28.40 billion was spent in the first five months of the current fiscal year. After that, a capital budget of Rs. 48.70 billion has been spent in the last three months.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The study also showed that the inflow of remittances has increased in the last three months. In the first five months of the current fiscal year, the monthly remittance was Rs 77.70 billion. In the next three months, remittances have reached an average of Rs 80.80 billion per month.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, arrival of tourists has also increased in the last three months. The average monthly tourist arrivals in the first five months of the current fiscal year were 17,757. In the next three months, an average of 26,249 foreign tourists arrived monthly.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to CNI Chairman Bishnu Agrawal, there is no economic crisis in Nepal based on these statistics. However, he acknowledged that the numbers were not enough and we need to be cautious.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI made the report public at a press conference on Tuesday.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">It has been said that there is an economic crisis in Nepal. But, looking at the statistics, it doesn't look like that. Foreign countries have reserves enough to sustain imports for three months of imports in foreign countries. Even though we have enough reserves to support imports for more than six months, there are comments that there is an economic crisis, which is not true," Agrawal opined. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At the same time, the steps taken by the government to resolve the crisis have created more problems, he added.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI concluded that stopping imports is not the answer. It has been said that a special initiative should be taken to increase production, marketing and consumption of domestic goods by managing the import at present. Stating that Nepal is in an economic crisis could create panic and destabilize the market, shared CNI Vice President Anuj Agrawal.</span></span></span></span></p> <p><br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-20', 'modified' => '2022-04-21', 'keywords' => '', 'description' => '', 'sortorder' => '14879', 'image' => '20220420051123_ecomonic crisis.jpg', 'article_date' => '2022-04-20 17:10:38', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 8 => array( 'Article' => array( 'id' => '15126', 'article_category_id' => '274', 'title' => 'Finance Ministry Issues Directive to Reduce Budget for Fuel by 20 Percent ', 'sub_title' => '', 'summary' => 'April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Issuing a notice on Monday, the Ministry of Finance directed the concerned government agencies to reduce the budget allocated under the heading of fuel for the current fiscal year by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The MoF clarified that the measure taken to reduce fuel consumption would however not be applicable for development projects, to maintain law and order, and for most essential services as well as the upcoming local level election. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the growing trade deficit, decline in inflow of remittance and foreign currency reserves have mounted pressure on national economy, the ministry said that the government on April 13 decided to cut budget allocated under the heading of fuel consumption. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">According to the ministry, the government decided to reduce the budget allocated under the heading of administration and fuel consumption by 10 percent each to promote the consumption of clean energy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The measure to cut-off fuel would remain effective up to July 15, informed Finance Ministry Spokesperson Dhundi Prasad Niraula. The Office of the Prime Minister and Council of Ministers and the Ministry of Federal Affairs and General Administration would monitor whether the decision has been implemented or not. -- RSS</span></span></span></p> ', 'published' => true, 'created' => '2022-04-19', 'modified' => '2022-04-19', 'keywords' => '', 'description' => '', 'sortorder' => '14868', 'image' => '20220419080850_Finmin.jpg', 'article_date' => '2022-04-19 08:08:19', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 9 => array( 'Article' => array( 'id' => '15116', 'article_category_id' => '274', 'title' => 'Government Agrees to Accept Financial Assistance of Rs 98 Billion', 'sub_title' => '', 'summary' => 'April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors.', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors. The government has decided to accept USD 659 million (about Rs 80 billion) from the United States Agency for International Development (USAID) and a concessional loan of USD 150 million (about Rs 18 billion) from the World Bank Group's International Development Association.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance informed that the government has already started its homework to receive the US grant. The grant will be received by Nepal within 5 years to be spent in various sectors. According to a Finance Ministry official, the government and USAID are preparing to sign the agreement after the cabinet decided to accept the grant.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the International Financial Assistance Coordination Division of the Ministry of Finance, the grant will be spent mainly on education, health, sustainable energy, agriculture and capacity building of the private sector. The projects are yet to be finalized even though the area for spending the grant that Nepal is about to receive has already been decided.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Ishwori Aryal, joint secretary at the Ministry of Finance, said that the grant agreement will be signed between the two sides after the government and the USAID decide on the projects. According to Aryal, work is underway to select relevant projects.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The grant amount will be received within five years at the rate of 132 million dollars (about Rs 16 billion) per year. If the agreement is signed this year, the grant will start coming from the next fiscal year and the full grant will come by 2027.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">USAID spent 683 million dollars in Nepal from 2016 to 2021. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Although some analysts say that the current economic crisis will be alleviated if the government accepts such large loans and grants, finance ministry officials contradict the viewpoint.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the Ministry of Finance, this loan is agreed upon to support the programs in the budget. Its interest rate will be less than 1 percent per annum.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The loan, which is planned to be spent on sectors including institutional capacity improvement and implementation of federalism, will be credited to the country’s finance as soon as the agreement is signed. The government will make expenditures from the credited amount accordingly.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the officials of the ministry of finance, as only the decision to accept grants and loans is made, this amount will not come to the market immediately. They added that although its effects will be long lasting, it will not help to resolve the immediate crisis.</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-17', 'modified' => '2022-04-17', 'keywords' => '', 'description' => '', 'sortorder' => '14858', 'image' => '20220417031556_finance_ministry_copy1.jpg', 'article_date' => '2022-04-17 15:15:16', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 10 => array( 'Article' => array( 'id' => '15110', 'article_category_id' => '274', 'title' => '2078 Marred by Liquidity Crisis ', 'sub_title' => '', 'summary' => 'April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. As economic activities picked up pace immediately after the Covid-19 pandemic subsided, banks and financial institutions aggressively pushed for credit expansion. However, as deposit collection did not grow as compared to the credit flow of banks, there was a liquidity crisis in the banking system. As a result, at the end of the year, the new credit flow of banks and financial institutions has almost stopped. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Deposits in banks increased by Rs 4.43 billion from Rs 4.45 trillion in 2077 to Rs 4.91 trillion in 2078. According to Nepal Rastra Bank, credit flow increased by Rs 678.77 billion from Rs 4.022 trillion to Rs 4.78 trillion. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The main reason for the liquidity crisis in banks and financial institutions was the change in policy of NRB. The NRB removed the provision of maintaining 85 percent capital, loan and deposit (CCD) ratio in the banks through the monetary policy of the current Fiscal Year (FY 2078/79) and implemented the provision of maintaining 90 percent credit-deposit (CD) ratio. Due to this reason, the ability of banks to expand credit flow decreased. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, as most of the credit was provided for imports, the country's foreign exchange earnings, remittances, tourism and other sectors were affected, and the deposits could not increase. Due to this, the financial sector is facing liquidity crisis in the market. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Dispute between finance minister and governor</strong> </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The year 2078 will also be remembered for the suspension of Governor Maha Prasad Adhikari. With the tension between Finance Minister Janardan Sharma and Governor Maha Prasad Adhikari boiling during the announcement of monetary policy for the current FY, the ministry has started an investigation against the governor for not cooperating with the government. The governor has been suspended since the investigation began. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The government has been criticized for taking political action against the governor who was seeking economic reform. Due to the dispute between the finance minister and the governor, the leadership of NRB is now in the hands of the acting Governor. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Cash margin for LC</strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Although the credit flow of banks and financial institutions increased, it shifted to the unproductive sector, which in turn posed a challenge to the financial sector. Due to this pressure, NRB tightened its grip on equity loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The central bank has discouraged investment in real estate and transportation sectors by increasing the risk burden of these loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, the central bank, which has implemented provision of 100 percent cash margin for opening LCs to reduce the import of goods under 47 different types of harmonic codes, has verbally instructed the banks not to open LCs until the situation improves. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14852', 'image' => '20220415125258_Liquidity.jpg', 'article_date' => '2022-04-15 12:52:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 11 => array( 'Article' => array( 'id' => '15107', 'article_category_id' => '274', 'title' => 'Banks' Interest on Loans hits Double Digit', 'sub_title' => '', 'summary' => 'April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The report states that the interest on loans increased due to the increase in interest on deposits as well as the increasing operational cost of the banks. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest rate on loans of banks in the month of Falgun (mid-February to mid-March) was 10.5 percent, the report states adding that the interest on loans reached double digit in the month of Magh (mid-January to mid-February).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest on loans was 8.48 percent during the first month of the current fiscal year. The banks were involved in an unhealthy competition of increasing the interest on deposits to attract customers following the liquidity crunch in the banking system. As a result, the interest on loans also increased.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The interest on deposits have almost doubled in the current fiscal year. According to the central bank, the average interest on deposits was 4.76 percent in the first month of the current fiscal year (mid-July to mid-August) which increased to 8.73 percent in the eighth month ie Falgun (mid-February to mid-March).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks were involved in an unhealthy competition of increasing interest on deposits to attract customers since mid-October to mid-November. The central bank had to intervene due to such competition among the banks. Issuing a circular on October 19, the central bank instructed the banks not to change interest rate more than 10 percent at a time.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NRB’s Deputy Spokesperson Narayan Prasad Pokharel says that the interest rate remained under control due to the central bank’s intervention.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">“Had the central bank not issued such directive, the interest on loans would have reached 18 percent by now,” said Pokharel, adding, “The interest rates on deposits as well as loans remained under control due to the NRB’s intervention.”</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Commercial banks are trying to keep the interest rate stable following a gentleman’s agreement among members of Nepal Bankers’ Association, an umbrella body of the CEOs of commercial banks.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks had decided to increase the interest on loans by 10 percent in mid-February. But the bankers agreed to maintain the same rate for at least two months. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The maximum interest on deposits at present is 11.3 percent on fixed deposits. Banks can increase the interest on fixed deposits by an additional one percentage point in case the deposit is collected through remittance.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14849', 'image' => '20220415114234_interest-rates-e1541025967190.jpg', 'article_date' => '2022-04-15 11:41:33', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 12 => array( 'Article' => array( 'id' => '15102', 'article_category_id' => '274', 'title' => 'Chamber of Industry Morang Warns of Imminent Economic Crisis', 'sub_title' => '', 'summary' => 'April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. The chamber also warned that the overall economic indicators were pointing towards an imminent crisis.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Suyash Pyakurel, chairman of the chamber, said that the liquidity crisis in the financial sector since a long time, rising interest rates, the Ukraine crisis, rising prices in international markets and the internal situation in the country are all leading the overall economy towards a crisis. Stating that there is no effective coordination among the regulatory bodies when it comes to management of liquidity, foreign exchange reserves and facilitation of import and export, he emphasized on the need to be aware of the ongoing situation.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Issuing a statement, the Chamber of Industry Morang demanded the government to find a possible solution to the crisis by removing the misunderstanding between the intergovernmental bodies. The chamber also stated that it is ready to provide assistance from the private sector to bring the crisis-oriented economy back on track.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-14', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14844', 'image' => '20220414025529_Chamber of industries morang new.jpg', 'article_date' => '2022-04-14 14:54:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 13 => array( 'Article' => array( 'id' => '15099', 'article_category_id' => '274', 'title' => '‘Economy has not Spiraled out of Control’', 'sub_title' => '', 'summary' => 'April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claims.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claim. The reports of both the ministry and the central bank show that the economy is under stress but the situation has not gone out of control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to NRB, although inflation has increased of late other indicators are under control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">The latest data of the central bank shows that </span></span>the country’s gross foreign exchange reserves decreased 16.3 percent to Rs 1171 billion in mid-March 2022 from Rs 1399.03 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the Current Macroeconomic and Financial Situation Report of NRB</span></span>, of the total foreign exchange reserves, reserves held by NRB decreased 18.2 percent to Rs 1018.05 billion in mid-March 2022 from Rs 1244.63 billion in mid-July 2021. Likewise, reserves held by banks and financial institutions (except NRB) decreased 0.9 percent to Rs 152.95 billion in mid-March 2022 from Rs 154.39 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Based on the imports of eight months of 2021/22, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 7.4 months, and merchandise and services imports of 6.7 months, the report further states.</span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Former NRB Governor Dr Chiranjivi Nepal believes that the situation has not gone out of control. Speaking at an interaction in the capital on Tuesday, Dr Nepal said that the situation will normalize soon.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">On the other hand, the consumer price inflation stood at 7.14 percent in the eighth month of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to economist Chandra Mani Bhandari, price hike is the result of both internal and external factors. He says that the impact of Russia-Ukraine war has increased prices of petroleum products across the world resulting in inflation which has also affected Nepal.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the NRB report, Nepal’s current account remained at a deficit of Rs 462.93 billion in the first eight months of the current fiscal year. Such a deficit was Rs 151.42 billion in the corresponding period of the previous fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">During the review period, capital transfer decreased 41.2 percent to Rs 7 billion and net foreign direct investment (FDI) increased 60.0 percent to Rs 16.30 billion, the report said. In the same period of the previous year, capital transfer and net FDI amounted to Rs 11.91 billion and Rs 10.18 billion respectively.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Likewise, the Balance of Payments (BOP) remained at a deficit of Rs 258.64 billion in the review period against a surplus of Rs 68.01 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 2.17 billion in the review period against a surplus of 565.8 million in the same period of the previous year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the central bank’s report, total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14841', 'image' => '20220413044135_NRBnew.jpg', 'article_date' => '2022-04-13 16:40:49', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 14 => array( 'Article' => array( 'id' => '15098', 'article_category_id' => '274', 'title' => 'Import and Export Up Despite Measures Taken by NRB', 'sub_title' => '', 'summary' => 'April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). ', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). The central bank’s data show overall imports have increased despite taking measures to tighten imports of luxurious goods. Trade deficit has also increased despite increase in exports. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by the central bank on Tuesday states that merchandise exports increased 82.9 percent to Rs 147.75 billion during the review period. The country’s exports had increased 7.8 percent during the corresponding period of last fiscal year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, exports to India and other countries increased 104.2 percent and 29.1 respectively whereas exports to China decreased 11.0 percent. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that exports of palm oil, soybean oil, oil cakes, polyester yarn and thread, woolen carpets among others, increased whereas exports of cardamom, tea, herbs, wire, copper wire rod, among others, decreased in the review period.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports increased 38.6 percent to Rs 1308.73 billion compared to an increase of 2.1 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, imports from India, China and other countries increased 28.1 percent, 36.7 percent, and 75.4 percent respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Imports of petroleum products, medicine, crude palm oil, crude soybean oil, gold, among others, increased whereas imports of MS billet, cement, chemical fertilizer, pulses, molasses sugar, among others, decreased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Based on customs points, exports from Kanchanpur, Mechi, and Nepalgunj Customs Office decreased whereas exports from all the other major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the import side, imports from all the major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports from India by paying convertible foreign currency amounted Rs 147.03 billion. Such amount was Rs 121.36 billion in the same period of the previous year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 47.3 percent and 52.7 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.02 percent in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 32.3 percent, 0.5 percent and 67.2 percent of total exports respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the imports side, the share of intermediate goods remained 53.5 percent, capital goods 10.7 percent and final consumption goods remained 35.8 percent in the review period. Such ratios were 53.5 percent, 11.8 percent and 34.7 percent respectively in the same period of the previous year.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14840', 'image' => '20220413041951_Trade.jpg', 'article_date' => '2022-04-13 16:18:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ) ) $current_user = null $logged_in = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
Notice (8): Undefined variable: file [APP/View/Elements/side_bar.ctp, line 133]Code Context// $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/subindexdata.xml';if(!$xml = simplexml_load_file($file)){$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp' $dataForView = array( 'articles' => array( (int) 0 => array( 'Article' => array( [maximum depth reached] ) ), (int) 1 => array( 'Article' => array( [maximum depth reached] ) ), (int) 2 => array( 'Article' => array( [maximum depth reached] ) ), (int) 3 => array( 'Article' => array( [maximum depth reached] ) ), (int) 4 => array( 'Article' => array( [maximum depth reached] ) ), (int) 5 => array( 'Article' => array( [maximum depth reached] ) ), (int) 6 => array( 'Article' => array( [maximum depth reached] ) ), (int) 7 => array( 'Article' => array( [maximum depth reached] ) ), (int) 8 => array( 'Article' => array( [maximum depth reached] ) ), (int) 9 => array( 'Article' => array( [maximum depth reached] ) ), (int) 10 => array( 'Article' => array( [maximum depth reached] ) ), (int) 11 => array( 'Article' => array( [maximum depth reached] ) ), (int) 12 => array( 'Article' => array( [maximum depth reached] ) ), (int) 13 => array( 'Article' => array( [maximum depth reached] ) ), (int) 14 => array( 'Article' => array( [maximum depth reached] ) ) ), 'current_user' => null, 'logged_in' => false ) $articles = array( (int) 0 => array( 'Article' => array( 'id' => '16484', 'article_category_id' => '274', 'title' => 'Prioritise Import Replacement Industries in SEZ : Private Sector ', 'sub_title' => '', 'summary' => 'Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land acquisition. ', 'content' => '<p><br /> </p> <p><span style="font-size:18px">December: 9 Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land acquisition. </span></p> <p><span style="font-size:18px">The government had established the Special Economic Zone (SEZ) along Birgunj-Pathlaiya Industrial Corridor in Simara with the vision to promote export industry sector in 2062 BS. The zone, however, has failed to entice investors and industrialists.</span></p> <p><span style="font-size:18px"> According to Birgunj Chapter of Federation of Nepalese Chamber of Commerce and Industry Chairman Subodh Kumar Gupta, exorbitant rent for the land, and unrealistic export quantity criteria to be eligible to rent the land inside the zone have driven investors away from investing in the SEZ. </span></p> <p><span style="font-size:18px">Investors and entrepreneurs demanded that SEZ should accord priority to industries that want to open industries focusing on the domestic market as Nepal’s export trade has failed to become competitive due to topography and high production cost. </span></p> <p><span style="font-size:18px">“Current business trend and tendency are quite different from the past. Time has come to change export with import replacement”, Bara-Parsa Industry Association Vice-chair Binay Shah said “Such infrastructure should be prioritized for industries with vision to promote import replacement”. </span></p> <p><span style="font-size:18px">Industries established in the special economic zone should export sixty per cent of their total production. Earlier, provision was even tougher. SEZ industries would have to export sixty per cent of their goods in the first year of their establishment itself. </span></p> <p><span style="font-size:18px">Since the economic zone could not lure any investors, the provision to export goods and commodities was revised. Now, the industries in SEZ will have to export 20 per cent, 40 per cent and 60 per cent in the first, second and remaining years with the start of the production. </span></p> <p><span style="font-size:18px">Chairman Gupta has urged the government to lower export quantity provision from 60 per cent to 25 per cent out of the total production. “Land rent was decreased from Rs 20 to Rs 10 per square. But, it is still expensive”, Gupta said adding “We have asked the government to lower the land rent to Rs 5 per square”. </span><br /> </p> <p><span style="font-size:18px">The government has exempted income tax for industries established in the SEZ for two years. The private sector, however, wants tax waive for 10 years. If income tax exemption is increased for 10 years, industries will be attracted to the SEZ, said Bara-Parsa Industry Association Vice-chair Hari Gautam. </span></p> <p><span style="font-size:18px">Investors have urged the government to provide all facilities through one-window system in the special economic zone. “Investors have shown no interest to the SEZ due to administrative hassles. So, all facilities and services should be provided through one window system”, said Gautam</span></p> <p><span style="font-size:18px">Despite frequent calls, the Special Economic Zone Authority has not received enough proposals for the establishment of industries. Industrialists and investors along the Bara-Parsa Corridor say that SEZ should be allowed to establish all kinds of industries as land acquisition had become tough and rent had gone expensive along the corridor. </span></p> <p><span style="font-size:18px">“Entrepreneurs and industrialists have a hard time getting land along the Bara-Parsa Corridor. But, the SEZ has not come into use for a long time. Thus, other industries should be allowed to establish their businesses even by changing criteria and standards in the SEZ”, Vice-chair Gautam added. </span></p> <p><span style="font-size:18px">Simara Special Economic Zone is spread in 833 bigaha land. The government had prepared a garment processing zone in the SEZ a few years back. Unfortunately, the garment processing zone was scrapped after investors did not show any interest. </span></p> ', 'published' => true, 'created' => '2022-12-09', 'modified' => '2022-12-09', 'keywords' => '', 'description' => '', 'sortorder' => '16225', 'image' => '20221209075327_collage.jpg', 'article_date' => '2022-12-09 07:46:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '42' ) ), (int) 1 => array( 'Article' => array( 'id' => '15219', 'article_category_id' => '274', 'title' => 'Government Needs to Spend Rs 754 billion in 2 Months', 'sub_title' => '', 'summary' => 'May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well. With only two months left for the current fiscal year to end, the government has not been able to spend almost half of the budget allocated for this FY.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Despite an increase in current expenditure, the government has not been able to spend the capital budget. According to the Financial General Comptrollers’ Office, which keeps track of government expenditure and revenue, the government had passed a budget of Rs 1.632 trillion for the current fiscal year while it has so far spent only Rs 878 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">With two months left in the current fiscal year, the government is yet to spend Rs 754 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government, which initially announced a budget of Rs 16.32 trillion, had downsized the budget during the mid-term review after it became clear that the government would not be able to achieve its target.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has spent only half of the budget allocated in the first ten months of the current fiscal year and its seems implausible to spend the remaining amount in the next two months. The current expenditure is likely to increase further. As the country is engaged in elections, the current expenditure is expected to increase this year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has already spent Rs 693 billion out of the total current expenditure of Rs 1065 billion for this year. The government will have to spend more than Rs 372 billion in the next two months under this heading.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Development spending weak</span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The last four months of a fiscal year (mid-April to mid-July) are the season for spending capital (development) budget in Nepal. However, there has not been any encouraging expenditure this time around. According to the FCGO, more than Rs 378 billion has been allocated for capital expenditure in the current fiscal year’s budget, but only Rs 111 billion has been spent so far.</span></span></span></span></p> <p> </p> <p><br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-05-05', 'modified' => '2022-05-05', 'keywords' => '', 'description' => '', 'sortorder' => '14961', 'image' => '20220505012709_budget new.jpg', 'article_date' => '2022-05-05 13:26:21', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15204', 'article_category_id' => '274', 'title' => 'Government Banks Acquiring Loans in Foreign Currency ', 'sub_title' => '', 'summary' => 'May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance has given permission to Rastriya Banijya Bank to acquire foreign loans up to US $100 million. Earlier, Nepal Rastra Bank had made arrangements only for private banks to bring foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief of the Financial Sector Management and Institutional Coordination Division of the Ministry of Finance, Ramesh Kumar KC, said that the banks can move ahead with the process of taking foreign loans with the approval of MoF. According to RBB, it is preparing to take the loan in two installments. The bank has also stated that it will bring loan by issuing international bids. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief Executive Officer of RBB Kiran Kumar Shrestha said that the process of taking loan on needs basis will start from this month. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, RRB has not acquired any loan from abroad so far. This is the first time it is about to take loan. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma had said that he would help the banks to acquire loans. It is believed that this will resolve the liquidity crisis in the banking system and the deepening problem of foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Nine financial institutions had acquired foreign loans three years ago due to the liquidity crisis. Mega Bank, Sunrise Bank, Laxmi Bank, Machhapuchhre Bank, Global IME Bank and NMB Bank are the commercial banks that have acquired loans from abroad. Similarly, last year, Nirdhan Utthan, RMDC and Manushi Microfinance had also acquired foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">As the liquidity crunch deepens, commercial banks and microfinances are currently preparing to bring in loans from abroad. Global IME Bank has entered into an agreement with CDC Group, a UK-based development finance institution, to bring in funds from abroad. As there was a shortage of investable money in the market, the central bank had made an arrangement in March/April 2018 for banks and financial institutions to bring loans in convertible foreign currency from abroad. Earlier, NMB Bank had taken a loan from IFC and Laxmi Bank had brought foreign loan from Doha Bank, Dubai. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Banks are allowed to borrow up to 100 percent of their primary capital from foreign banks. Banks can invest that loan in renewable energy, production and transmission lines, physical infrastructure such as roads, tunnels, airports, cable cars, bridges, tourism, agriculture, small and medium enterprises, manufacturing industries as well as microfinance. </span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-05-02', 'modified' => '2022-05-02', 'keywords' => '', 'description' => '', 'sortorder' => '14946', 'image' => '20220502064636_Banks.jpg', 'article_date' => '2022-05-02 18:46:01', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15182', 'article_category_id' => '274', 'title' => 'Economy at the Crossroads: Former Governor', 'sub_title' => '', 'summary' => 'April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads. He made such remark during the 67</span></span><sup><span style="font-size:7.0pt"><span style="font-family:"Times New Roman","serif"">th</span></span></sup><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif""> anniversary of Nepal Rastra Bank. He also stated that there are problems with the economy of the nation and that the government is failing to carry out its responsibilities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, the trade deficit has increased, balance of payments disturbed, foreign exchange reserves have been declining and current account is in a deficit. Rawal said that such facts should not be hidden but rather a collective effort is needed to normalize the situation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the global economy itself is in turmoil, Rawal said that no single person should be held responsible for the current economic crisis of the nation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He argued that excessive imports disturbed the balance of payments.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He suggested that all the concerned authorities should work in coordination with each other in order to overcome the issues seen in the nation’s economy. Dr. Rawal stated that Maha Prasad Adhikai received justice just like him when he was suspended as the governor 20 years back.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said that some of the negative effects of world trade have also affected Nepal's economy.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Former Governor Rawal said that giving priority to local production can help Nepal's economy during the current crisis.</span></span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-28', 'modified' => '2022-04-28', 'keywords' => '', 'description' => '', 'sortorder' => '14924', 'image' => '20220428021318_economic crisis.jpg', 'article_date' => '2022-04-28 14:12:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15176', 'article_category_id' => '274', 'title' => 'FNCCI Urges Government to Avail Loan for Productive Sector at 2 Percent Interest Rate ', 'sub_title' => '', 'summary' => 'April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">As the budget announcement for the upcoming fiscal year (FY 2022/23) is approaching, the federation has suggested the government to adopt export-oriented policy and to end undeclared power curs faced by the industrial sector.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation put forward those suggestions during a pre-budget discussion organized on Tuesday. On the occasion, FNCCI vice president Dinesh Shrestha said that concrete reforms were needed in the revenue system. He said that 80 percent of the taxpayers at present have paid only 20 percent of the total tax. According to Shrestha, the government should create a favorable environment for paying taxes and this would prevent tax evasion. "There has never been a study on how much taxes should be raised," he said, "It is necessary now." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">On the occasion, FNCCI Tax and Revenue Committee Chairman Sandeep Kumar Agrawal presented the paper on behalf of the FNCCI. He stressed on the need to come up with short, mid and long term plans to increase capital and for import substitution. He claimed that the prices of commodities have gone up worldwide and the rate of imports will continue to go up. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">"We have estimated that the remittance inflow will be Rs 1 trillion this year," he said, "Apart from this, 30 to 40 percent of the remittances are still coming through informal channels, and an attractive policy is needed to bring it through the formal channels." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation has suggested revising the Nepal Integrated Trade Strategy (NTIS) for export promotion. Stating that the current arrangement of export refinancing is impractical, the federation asked to maintain the term of such loan for at least 3 years. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The private sector has demanded cash incentives for shoe and sole manufacturers. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Stating that the exporters have to go to the central bank and other banks to get the cash subsidy for export, Agrawal demanded the money to be transferred to their account as soon as the export is done. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the federation, there are many problems such as environmental impact assessment for the establishment of industries. While declaring industrial villages, the FNCCI has suggested the government to take into consideration the situation after decades. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Furthermore, the federation has also demanded to bring a policy of giving tariff exemption to those who consume more energy. The suggestion has also laid emphasis on providing cheap electricity to the export-oriented industries. In addition, it has been mentioned that skilled manpower has to be imported from outside while the manpower produced by the Council for Technical Education and Vocational Training (CTEVT) have not been linked with the entrepreneurs. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-27', 'modified' => '2022-04-27', 'keywords' => '', 'description' => '', 'sortorder' => '14918', 'image' => '20220427023224_budget new.jpg', 'article_date' => '2022-04-27 14:31:45', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15172', 'article_category_id' => '274', 'title' => 'IMF Projects Nepal’s Economy to Grow by 4.1 Percent in 2022', 'sub_title' => '', 'summary' => 'April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The IMF published its report ‘World Economic Outlook’ which states that Nepal’s economy will grow by 4.1 percent in 2022 after suffering a slowdown to 2.1 percent in 2021 due to the Covid-19 pandemic.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that Nepal’s economy is projected to grow by 6.1 percent in 2023.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the war in Ukraine, a resurgent pandemic, and tightening global financial conditions, according to IMF.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation,” states the report. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to IMF, fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Interest rates are expected to rise as central banks tighten policy, exerting pressure on emerging market and developing economies. Moreover, many countries have limited fiscal policy space to cushion the impact of the war on their economies, IMF further said.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies—1.8 and 2.8 percentage points higher than projected last January.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential, the report added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">With a few exceptions, employment and output will typically remain below pre-pandemic trends through 2026. Scarring effects are expected to be much larger in emerging market and developing economies than in advanced economies—reflecting more limited policy support and generally slower vaccination—with output expected to remain below the pre-pandemic trend throughout the forecast horizon.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-26', 'modified' => '2022-04-26', 'keywords' => '', 'description' => '', 'sortorder' => '14914', 'image' => '20220426051733_imf.jpg', 'article_date' => '2022-04-26 17:16:47', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15162', 'article_category_id' => '274', 'title' => 'MoF holds Budget Discussion with Education and Health Ministries', 'sub_title' => '', 'summary' => 'April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. The Ministry of Finance discussed the programmes proposed within budget ceiling with both the ministries.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma suggested the concerned ministry to include such programmes in the budget that would prevent the tendency of school drop-out rate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Most of the students enrolled in grade 1 tend to drop out of school before even reaching grade 5. The number of students in higher classes is even lower,” said Minister Sharma, adding, “Let’s prepare the budget and introduce programs to determine the cause why students drop out of the school and create the environment for the students to not drop out.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He also remarked that there is a need to move towards digital technology to change the way of learning with time. He instructed the concerned authorities to start a programmes to make use of digital technology for teaching in some schools from the upcoming fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the establishment of IT colleges is necessary, Sharma said that a budget should be allocated for that as well. Sharma said, “There are many programmes that failed to show effective results despite continuous budget allocation. Therefore, we should prepare the budget by focusing on programmes that have good return.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the meeting, Minister for Education Devendra Poudel emphasized the need of programmess to ensure quality education, stating that there will be chaos everywhere if the education lags behind. He said that the development of the country will also be supported by better education.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Vice Chairman of the National Planning Commission, Biswo Nath Poudel, said that the compulsion for students to go to school by travelling a long distance should be removed. He said that the tendency to study with government’s money and going to work abroad after the completion of studies should also be discouraged. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the meeting with the Ministry of Health and Population on Sunday, Finance Minister Janardan Sharma said that it is necessary to formulate the budget in such a way as that it would end the compulsion for poor people to live with diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He requested to propose budget and programmes to expand the services of Patan Institute of Health Sciences and Tribhuvan University Teaching Hospital, Maharajgunj to other places as well.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said the upcoming budget will address the issue of health insurance reaching out to the poor families, improving maternity services, creating a situation where people do not have to go abroad for treatment of complex diseases including kidney and liver diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the discussion, Health Minister Birodh Khatiwada said that arrangements should be made for the posts of doctors and equipment in 500 to 1,500-bed hospitals.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-25', 'modified' => '2022-04-25', 'keywords' => '', 'description' => '', 'sortorder' => '14904', 'image' => '20220425020619_finance_ministry_copy1.jpg', 'article_date' => '2022-04-25 14:05:24', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15137', 'article_category_id' => '274', 'title' => 'CNI Study Concludes Nepal’s Economy is not in Crisis', 'sub_title' => '', 'summary' => 'April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">A study conducted by CNI has concluded that the economy is not in crisis. CNI has also released a study report claiming that the economy is not in crisis. Various economists have also commented that the economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">There have been comments that the lack of liquidity in the country's banking system, rising trade deficit and balance of payments deficit, declining foreign exchange reserves, rising inflation, and lack of energy and fuel have all contributed to the crisis. Some have even analyzed that Nepal is facing an economic crisis like Sri Lanka. However, according to the CNI report, Nepal's economy is much better than that of Sri Lanka.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI claims that data suggest there is no economic crisis. However, the report states that there is a need to move forward with restraint.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At present, the size of Nepal's public debt is 40.5 per cent of the gross domestic product (GDP). Sri Lanka's national debt is 111 per cent of GDP.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Nepal has 6.7 months of foreign exchange reserves to support imports of goods and services. Sri Lanka does not have enough foreign exchange reserves to sustain one month of goods and services. Sri Lanka is unable to import even basic commodities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Inflation in Nepal is 7 per cent while it has grown to 25 per cent in Sri Lanka. In this case, Nepal's economy should not be compared with Sri Lanka, the report said. On top of that, CNI claimed that the overall economy is not in crisis. The report states that the economy does not appear to be in crisis in the last three months of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the first five months of the current fiscal year, the monthly average import was Rs 167 billion. In the following three months it stood at Rs 156 billion in January, February and March. This suggests that imports have declined recently.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, foreign exchange reserves were negative by 3.24 per cent in the first five months of the current fiscal year. In the following three months, foreign exchange reserves declined by only 1.53 per cent.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The capital budget of Rs 28.40 billion was spent in the first five months of the current fiscal year. After that, a capital budget of Rs. 48.70 billion has been spent in the last three months.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The study also showed that the inflow of remittances has increased in the last three months. In the first five months of the current fiscal year, the monthly remittance was Rs 77.70 billion. In the next three months, remittances have reached an average of Rs 80.80 billion per month.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, arrival of tourists has also increased in the last three months. The average monthly tourist arrivals in the first five months of the current fiscal year were 17,757. In the next three months, an average of 26,249 foreign tourists arrived monthly.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to CNI Chairman Bishnu Agrawal, there is no economic crisis in Nepal based on these statistics. However, he acknowledged that the numbers were not enough and we need to be cautious.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI made the report public at a press conference on Tuesday.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">It has been said that there is an economic crisis in Nepal. But, looking at the statistics, it doesn't look like that. Foreign countries have reserves enough to sustain imports for three months of imports in foreign countries. Even though we have enough reserves to support imports for more than six months, there are comments that there is an economic crisis, which is not true," Agrawal opined. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At the same time, the steps taken by the government to resolve the crisis have created more problems, he added.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI concluded that stopping imports is not the answer. It has been said that a special initiative should be taken to increase production, marketing and consumption of domestic goods by managing the import at present. Stating that Nepal is in an economic crisis could create panic and destabilize the market, shared CNI Vice President Anuj Agrawal.</span></span></span></span></p> <p><br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-20', 'modified' => '2022-04-21', 'keywords' => '', 'description' => '', 'sortorder' => '14879', 'image' => '20220420051123_ecomonic crisis.jpg', 'article_date' => '2022-04-20 17:10:38', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 8 => array( 'Article' => array( 'id' => '15126', 'article_category_id' => '274', 'title' => 'Finance Ministry Issues Directive to Reduce Budget for Fuel by 20 Percent ', 'sub_title' => '', 'summary' => 'April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Issuing a notice on Monday, the Ministry of Finance directed the concerned government agencies to reduce the budget allocated under the heading of fuel for the current fiscal year by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The MoF clarified that the measure taken to reduce fuel consumption would however not be applicable for development projects, to maintain law and order, and for most essential services as well as the upcoming local level election. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the growing trade deficit, decline in inflow of remittance and foreign currency reserves have mounted pressure on national economy, the ministry said that the government on April 13 decided to cut budget allocated under the heading of fuel consumption. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">According to the ministry, the government decided to reduce the budget allocated under the heading of administration and fuel consumption by 10 percent each to promote the consumption of clean energy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The measure to cut-off fuel would remain effective up to July 15, informed Finance Ministry Spokesperson Dhundi Prasad Niraula. The Office of the Prime Minister and Council of Ministers and the Ministry of Federal Affairs and General Administration would monitor whether the decision has been implemented or not. -- RSS</span></span></span></p> ', 'published' => true, 'created' => '2022-04-19', 'modified' => '2022-04-19', 'keywords' => '', 'description' => '', 'sortorder' => '14868', 'image' => '20220419080850_Finmin.jpg', 'article_date' => '2022-04-19 08:08:19', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 9 => array( 'Article' => array( 'id' => '15116', 'article_category_id' => '274', 'title' => 'Government Agrees to Accept Financial Assistance of Rs 98 Billion', 'sub_title' => '', 'summary' => 'April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors.', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors. The government has decided to accept USD 659 million (about Rs 80 billion) from the United States Agency for International Development (USAID) and a concessional loan of USD 150 million (about Rs 18 billion) from the World Bank Group's International Development Association.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance informed that the government has already started its homework to receive the US grant. The grant will be received by Nepal within 5 years to be spent in various sectors. According to a Finance Ministry official, the government and USAID are preparing to sign the agreement after the cabinet decided to accept the grant.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the International Financial Assistance Coordination Division of the Ministry of Finance, the grant will be spent mainly on education, health, sustainable energy, agriculture and capacity building of the private sector. The projects are yet to be finalized even though the area for spending the grant that Nepal is about to receive has already been decided.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Ishwori Aryal, joint secretary at the Ministry of Finance, said that the grant agreement will be signed between the two sides after the government and the USAID decide on the projects. According to Aryal, work is underway to select relevant projects.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The grant amount will be received within five years at the rate of 132 million dollars (about Rs 16 billion) per year. If the agreement is signed this year, the grant will start coming from the next fiscal year and the full grant will come by 2027.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">USAID spent 683 million dollars in Nepal from 2016 to 2021. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Although some analysts say that the current economic crisis will be alleviated if the government accepts such large loans and grants, finance ministry officials contradict the viewpoint.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the Ministry of Finance, this loan is agreed upon to support the programs in the budget. Its interest rate will be less than 1 percent per annum.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The loan, which is planned to be spent on sectors including institutional capacity improvement and implementation of federalism, will be credited to the country’s finance as soon as the agreement is signed. The government will make expenditures from the credited amount accordingly.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the officials of the ministry of finance, as only the decision to accept grants and loans is made, this amount will not come to the market immediately. They added that although its effects will be long lasting, it will not help to resolve the immediate crisis.</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-17', 'modified' => '2022-04-17', 'keywords' => '', 'description' => '', 'sortorder' => '14858', 'image' => '20220417031556_finance_ministry_copy1.jpg', 'article_date' => '2022-04-17 15:15:16', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 10 => array( 'Article' => array( 'id' => '15110', 'article_category_id' => '274', 'title' => '2078 Marred by Liquidity Crisis ', 'sub_title' => '', 'summary' => 'April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. As economic activities picked up pace immediately after the Covid-19 pandemic subsided, banks and financial institutions aggressively pushed for credit expansion. However, as deposit collection did not grow as compared to the credit flow of banks, there was a liquidity crisis in the banking system. As a result, at the end of the year, the new credit flow of banks and financial institutions has almost stopped. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Deposits in banks increased by Rs 4.43 billion from Rs 4.45 trillion in 2077 to Rs 4.91 trillion in 2078. According to Nepal Rastra Bank, credit flow increased by Rs 678.77 billion from Rs 4.022 trillion to Rs 4.78 trillion. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The main reason for the liquidity crisis in banks and financial institutions was the change in policy of NRB. The NRB removed the provision of maintaining 85 percent capital, loan and deposit (CCD) ratio in the banks through the monetary policy of the current Fiscal Year (FY 2078/79) and implemented the provision of maintaining 90 percent credit-deposit (CD) ratio. Due to this reason, the ability of banks to expand credit flow decreased. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, as most of the credit was provided for imports, the country's foreign exchange earnings, remittances, tourism and other sectors were affected, and the deposits could not increase. Due to this, the financial sector is facing liquidity crisis in the market. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Dispute between finance minister and governor</strong> </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The year 2078 will also be remembered for the suspension of Governor Maha Prasad Adhikari. With the tension between Finance Minister Janardan Sharma and Governor Maha Prasad Adhikari boiling during the announcement of monetary policy for the current FY, the ministry has started an investigation against the governor for not cooperating with the government. The governor has been suspended since the investigation began. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The government has been criticized for taking political action against the governor who was seeking economic reform. Due to the dispute between the finance minister and the governor, the leadership of NRB is now in the hands of the acting Governor. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Cash margin for LC</strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Although the credit flow of banks and financial institutions increased, it shifted to the unproductive sector, which in turn posed a challenge to the financial sector. Due to this pressure, NRB tightened its grip on equity loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The central bank has discouraged investment in real estate and transportation sectors by increasing the risk burden of these loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, the central bank, which has implemented provision of 100 percent cash margin for opening LCs to reduce the import of goods under 47 different types of harmonic codes, has verbally instructed the banks not to open LCs until the situation improves. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14852', 'image' => '20220415125258_Liquidity.jpg', 'article_date' => '2022-04-15 12:52:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 11 => array( 'Article' => array( 'id' => '15107', 'article_category_id' => '274', 'title' => 'Banks' Interest on Loans hits Double Digit', 'sub_title' => '', 'summary' => 'April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The report states that the interest on loans increased due to the increase in interest on deposits as well as the increasing operational cost of the banks. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest rate on loans of banks in the month of Falgun (mid-February to mid-March) was 10.5 percent, the report states adding that the interest on loans reached double digit in the month of Magh (mid-January to mid-February).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest on loans was 8.48 percent during the first month of the current fiscal year. The banks were involved in an unhealthy competition of increasing the interest on deposits to attract customers following the liquidity crunch in the banking system. As a result, the interest on loans also increased.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The interest on deposits have almost doubled in the current fiscal year. According to the central bank, the average interest on deposits was 4.76 percent in the first month of the current fiscal year (mid-July to mid-August) which increased to 8.73 percent in the eighth month ie Falgun (mid-February to mid-March).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks were involved in an unhealthy competition of increasing interest on deposits to attract customers since mid-October to mid-November. The central bank had to intervene due to such competition among the banks. Issuing a circular on October 19, the central bank instructed the banks not to change interest rate more than 10 percent at a time.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NRB’s Deputy Spokesperson Narayan Prasad Pokharel says that the interest rate remained under control due to the central bank’s intervention.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">“Had the central bank not issued such directive, the interest on loans would have reached 18 percent by now,” said Pokharel, adding, “The interest rates on deposits as well as loans remained under control due to the NRB’s intervention.”</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Commercial banks are trying to keep the interest rate stable following a gentleman’s agreement among members of Nepal Bankers’ Association, an umbrella body of the CEOs of commercial banks.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks had decided to increase the interest on loans by 10 percent in mid-February. But the bankers agreed to maintain the same rate for at least two months. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The maximum interest on deposits at present is 11.3 percent on fixed deposits. Banks can increase the interest on fixed deposits by an additional one percentage point in case the deposit is collected through remittance.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14849', 'image' => '20220415114234_interest-rates-e1541025967190.jpg', 'article_date' => '2022-04-15 11:41:33', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 12 => array( 'Article' => array( 'id' => '15102', 'article_category_id' => '274', 'title' => 'Chamber of Industry Morang Warns of Imminent Economic Crisis', 'sub_title' => '', 'summary' => 'April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. The chamber also warned that the overall economic indicators were pointing towards an imminent crisis.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Suyash Pyakurel, chairman of the chamber, said that the liquidity crisis in the financial sector since a long time, rising interest rates, the Ukraine crisis, rising prices in international markets and the internal situation in the country are all leading the overall economy towards a crisis. Stating that there is no effective coordination among the regulatory bodies when it comes to management of liquidity, foreign exchange reserves and facilitation of import and export, he emphasized on the need to be aware of the ongoing situation.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Issuing a statement, the Chamber of Industry Morang demanded the government to find a possible solution to the crisis by removing the misunderstanding between the intergovernmental bodies. The chamber also stated that it is ready to provide assistance from the private sector to bring the crisis-oriented economy back on track.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-14', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14844', 'image' => '20220414025529_Chamber of industries morang new.jpg', 'article_date' => '2022-04-14 14:54:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 13 => array( 'Article' => array( 'id' => '15099', 'article_category_id' => '274', 'title' => '‘Economy has not Spiraled out of Control’', 'sub_title' => '', 'summary' => 'April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claims.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claim. The reports of both the ministry and the central bank show that the economy is under stress but the situation has not gone out of control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to NRB, although inflation has increased of late other indicators are under control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">The latest data of the central bank shows that </span></span>the country’s gross foreign exchange reserves decreased 16.3 percent to Rs 1171 billion in mid-March 2022 from Rs 1399.03 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the Current Macroeconomic and Financial Situation Report of NRB</span></span>, of the total foreign exchange reserves, reserves held by NRB decreased 18.2 percent to Rs 1018.05 billion in mid-March 2022 from Rs 1244.63 billion in mid-July 2021. Likewise, reserves held by banks and financial institutions (except NRB) decreased 0.9 percent to Rs 152.95 billion in mid-March 2022 from Rs 154.39 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Based on the imports of eight months of 2021/22, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 7.4 months, and merchandise and services imports of 6.7 months, the report further states.</span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Former NRB Governor Dr Chiranjivi Nepal believes that the situation has not gone out of control. Speaking at an interaction in the capital on Tuesday, Dr Nepal said that the situation will normalize soon.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">On the other hand, the consumer price inflation stood at 7.14 percent in the eighth month of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to economist Chandra Mani Bhandari, price hike is the result of both internal and external factors. He says that the impact of Russia-Ukraine war has increased prices of petroleum products across the world resulting in inflation which has also affected Nepal.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the NRB report, Nepal’s current account remained at a deficit of Rs 462.93 billion in the first eight months of the current fiscal year. Such a deficit was Rs 151.42 billion in the corresponding period of the previous fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">During the review period, capital transfer decreased 41.2 percent to Rs 7 billion and net foreign direct investment (FDI) increased 60.0 percent to Rs 16.30 billion, the report said. In the same period of the previous year, capital transfer and net FDI amounted to Rs 11.91 billion and Rs 10.18 billion respectively.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Likewise, the Balance of Payments (BOP) remained at a deficit of Rs 258.64 billion in the review period against a surplus of Rs 68.01 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 2.17 billion in the review period against a surplus of 565.8 million in the same period of the previous year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the central bank’s report, total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14841', 'image' => '20220413044135_NRBnew.jpg', 'article_date' => '2022-04-13 16:40:49', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 14 => array( 'Article' => array( 'id' => '15098', 'article_category_id' => '274', 'title' => 'Import and Export Up Despite Measures Taken by NRB', 'sub_title' => '', 'summary' => 'April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). ', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). The central bank’s data show overall imports have increased despite taking measures to tighten imports of luxurious goods. Trade deficit has also increased despite increase in exports. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by the central bank on Tuesday states that merchandise exports increased 82.9 percent to Rs 147.75 billion during the review period. The country’s exports had increased 7.8 percent during the corresponding period of last fiscal year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, exports to India and other countries increased 104.2 percent and 29.1 respectively whereas exports to China decreased 11.0 percent. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that exports of palm oil, soybean oil, oil cakes, polyester yarn and thread, woolen carpets among others, increased whereas exports of cardamom, tea, herbs, wire, copper wire rod, among others, decreased in the review period.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports increased 38.6 percent to Rs 1308.73 billion compared to an increase of 2.1 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, imports from India, China and other countries increased 28.1 percent, 36.7 percent, and 75.4 percent respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Imports of petroleum products, medicine, crude palm oil, crude soybean oil, gold, among others, increased whereas imports of MS billet, cement, chemical fertilizer, pulses, molasses sugar, among others, decreased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Based on customs points, exports from Kanchanpur, Mechi, and Nepalgunj Customs Office decreased whereas exports from all the other major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the import side, imports from all the major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports from India by paying convertible foreign currency amounted Rs 147.03 billion. Such amount was Rs 121.36 billion in the same period of the previous year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 47.3 percent and 52.7 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.02 percent in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 32.3 percent, 0.5 percent and 67.2 percent of total exports respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the imports side, the share of intermediate goods remained 53.5 percent, capital goods 10.7 percent and final consumption goods remained 35.8 percent in the review period. Such ratios were 53.5 percent, 11.8 percent and 34.7 percent respectively in the same period of the previous year.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14840', 'image' => '20220413041951_Trade.jpg', 'article_date' => '2022-04-13 16:18:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ) ) $current_user = null $logged_in = false $xml = falseinclude - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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', 'content' => '<p><br /> </p> <p><span style="font-size:18px">December: 9 Private sector has said that investors have not been attracted to Special Economic Zone (SEZ) due to impractical provisions for land acquisition. </span></p> <p><span style="font-size:18px">The government had established the Special Economic Zone (SEZ) along Birgunj-Pathlaiya Industrial Corridor in Simara with the vision to promote export industry sector in 2062 BS. The zone, however, has failed to entice investors and industrialists.</span></p> <p><span style="font-size:18px"> According to Birgunj Chapter of Federation of Nepalese Chamber of Commerce and Industry Chairman Subodh Kumar Gupta, exorbitant rent for the land, and unrealistic export quantity criteria to be eligible to rent the land inside the zone have driven investors away from investing in the SEZ. </span></p> <p><span style="font-size:18px">Investors and entrepreneurs demanded that SEZ should accord priority to industries that want to open industries focusing on the domestic market as Nepal’s export trade has failed to become competitive due to topography and high production cost. </span></p> <p><span style="font-size:18px">“Current business trend and tendency are quite different from the past. Time has come to change export with import replacement”, Bara-Parsa Industry Association Vice-chair Binay Shah said “Such infrastructure should be prioritized for industries with vision to promote import replacement”. </span></p> <p><span style="font-size:18px">Industries established in the special economic zone should export sixty per cent of their total production. Earlier, provision was even tougher. SEZ industries would have to export sixty per cent of their goods in the first year of their establishment itself. </span></p> <p><span style="font-size:18px">Since the economic zone could not lure any investors, the provision to export goods and commodities was revised. Now, the industries in SEZ will have to export 20 per cent, 40 per cent and 60 per cent in the first, second and remaining years with the start of the production. </span></p> <p><span style="font-size:18px">Chairman Gupta has urged the government to lower export quantity provision from 60 per cent to 25 per cent out of the total production. “Land rent was decreased from Rs 20 to Rs 10 per square. But, it is still expensive”, Gupta said adding “We have asked the government to lower the land rent to Rs 5 per square”. </span><br /> </p> <p><span style="font-size:18px">The government has exempted income tax for industries established in the SEZ for two years. The private sector, however, wants tax waive for 10 years. If income tax exemption is increased for 10 years, industries will be attracted to the SEZ, said Bara-Parsa Industry Association Vice-chair Hari Gautam. </span></p> <p><span style="font-size:18px">Investors have urged the government to provide all facilities through one-window system in the special economic zone. “Investors have shown no interest to the SEZ due to administrative hassles. So, all facilities and services should be provided through one window system”, said Gautam</span></p> <p><span style="font-size:18px">Despite frequent calls, the Special Economic Zone Authority has not received enough proposals for the establishment of industries. Industrialists and investors along the Bara-Parsa Corridor say that SEZ should be allowed to establish all kinds of industries as land acquisition had become tough and rent had gone expensive along the corridor. </span></p> <p><span style="font-size:18px">“Entrepreneurs and industrialists have a hard time getting land along the Bara-Parsa Corridor. But, the SEZ has not come into use for a long time. Thus, other industries should be allowed to establish their businesses even by changing criteria and standards in the SEZ”, Vice-chair Gautam added. </span></p> <p><span style="font-size:18px">Simara Special Economic Zone is spread in 833 bigaha land. The government had prepared a garment processing zone in the SEZ a few years back. Unfortunately, the garment processing zone was scrapped after investors did not show any interest. </span></p> ', 'published' => true, 'created' => '2022-12-09', 'modified' => '2022-12-09', 'keywords' => '', 'description' => '', 'sortorder' => '16225', 'image' => '20221209075327_collage.jpg', 'article_date' => '2022-12-09 07:46:11', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '42' ) ), (int) 1 => array( 'Article' => array( 'id' => '15219', 'article_category_id' => '274', 'title' => 'Government Needs to Spend Rs 754 billion in 2 Months', 'sub_title' => '', 'summary' => 'May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 5: The government has again kept its trend of not spending a large part of the capital budget this time as well. With only two months left for the current fiscal year to end, the government has not been able to spend almost half of the budget allocated for this FY.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Despite an increase in current expenditure, the government has not been able to spend the capital budget. According to the Financial General Comptrollers’ Office, which keeps track of government expenditure and revenue, the government had passed a budget of Rs 1.632 trillion for the current fiscal year while it has so far spent only Rs 878 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">With two months left in the current fiscal year, the government is yet to spend Rs 754 billion.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government, which initially announced a budget of Rs 16.32 trillion, had downsized the budget during the mid-term review after it became clear that the government would not be able to achieve its target.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has spent only half of the budget allocated in the first ten months of the current fiscal year and its seems implausible to spend the remaining amount in the next two months. The current expenditure is likely to increase further. As the country is engaged in elections, the current expenditure is expected to increase this year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The government has already spent Rs 693 billion out of the total current expenditure of Rs 1065 billion for this year. The government will have to spend more than Rs 372 billion in the next two months under this heading.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Development spending weak</span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The last four months of a fiscal year (mid-April to mid-July) are the season for spending capital (development) budget in Nepal. However, there has not been any encouraging expenditure this time around. According to the FCGO, more than Rs 378 billion has been allocated for capital expenditure in the current fiscal year’s budget, but only Rs 111 billion has been spent so far.</span></span></span></span></p> <p> </p> <p><br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-05-05', 'modified' => '2022-05-05', 'keywords' => '', 'description' => '', 'sortorder' => '14961', 'image' => '20220505012709_budget new.jpg', 'article_date' => '2022-05-05 13:26:21', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '15204', 'article_category_id' => '274', 'title' => 'Government Banks Acquiring Loans in Foreign Currency ', 'sub_title' => '', 'summary' => 'May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">May 2: At a time when foreign exchange reserves are declining due to increasing balance of payments deficit, the finance ministry has given approval to state-owned banks to bring loans in foreign currency. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance has given permission to Rastriya Banijya Bank to acquire foreign loans up to US $100 million. Earlier, Nepal Rastra Bank had made arrangements only for private banks to bring foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief of the Financial Sector Management and Institutional Coordination Division of the Ministry of Finance, Ramesh Kumar KC, said that the banks can move ahead with the process of taking foreign loans with the approval of MoF. According to RBB, it is preparing to take the loan in two installments. The bank has also stated that it will bring loan by issuing international bids. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Chief Executive Officer of RBB Kiran Kumar Shrestha said that the process of taking loan on needs basis will start from this month. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, RRB has not acquired any loan from abroad so far. This is the first time it is about to take loan. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma had said that he would help the banks to acquire loans. It is believed that this will resolve the liquidity crisis in the banking system and the deepening problem of foreign exchange reserves. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Nine financial institutions had acquired foreign loans three years ago due to the liquidity crisis. Mega Bank, Sunrise Bank, Laxmi Bank, Machhapuchhre Bank, Global IME Bank and NMB Bank are the commercial banks that have acquired loans from abroad. Similarly, last year, Nirdhan Utthan, RMDC and Manushi Microfinance had also acquired foreign loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">As the liquidity crunch deepens, commercial banks and microfinances are currently preparing to bring in loans from abroad. Global IME Bank has entered into an agreement with CDC Group, a UK-based development finance institution, to bring in funds from abroad. As there was a shortage of investable money in the market, the central bank had made an arrangement in March/April 2018 for banks and financial institutions to bring loans in convertible foreign currency from abroad. Earlier, NMB Bank had taken a loan from IFC and Laxmi Bank had brought foreign loan from Doha Bank, Dubai. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Banks are allowed to borrow up to 100 percent of their primary capital from foreign banks. Banks can invest that loan in renewable energy, production and transmission lines, physical infrastructure such as roads, tunnels, airports, cable cars, bridges, tourism, agriculture, small and medium enterprises, manufacturing industries as well as microfinance. </span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-05-02', 'modified' => '2022-05-02', 'keywords' => '', 'description' => '', 'sortorder' => '14946', 'image' => '20220502064636_Banks.jpg', 'article_date' => '2022-05-02 18:46:01', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '15182', 'article_category_id' => '274', 'title' => 'Economy at the Crossroads: Former Governor', 'sub_title' => '', 'summary' => 'April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 28: Former governor of Nepal Rastra Bank, Dr Tilak Rawal, said that the economy of Nepal is at the crossroads. He made such remark during the 67</span></span><sup><span style="font-size:7.0pt"><span style="font-family:"Times New Roman","serif"">th</span></span></sup><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif""> anniversary of Nepal Rastra Bank. He also stated that there are problems with the economy of the nation and that the government is failing to carry out its responsibilities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to him, the trade deficit has increased, balance of payments disturbed, foreign exchange reserves have been declining and current account is in a deficit. Rawal said that such facts should not be hidden but rather a collective effort is needed to normalize the situation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the global economy itself is in turmoil, Rawal said that no single person should be held responsible for the current economic crisis of the nation.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He argued that excessive imports disturbed the balance of payments.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He suggested that all the concerned authorities should work in coordination with each other in order to overcome the issues seen in the nation’s economy. Dr. Rawal stated that Maha Prasad Adhikai received justice just like him when he was suspended as the governor 20 years back.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said that some of the negative effects of world trade have also affected Nepal's economy.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Former Governor Rawal said that giving priority to local production can help Nepal's economy during the current crisis.</span></span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-28', 'modified' => '2022-04-28', 'keywords' => '', 'description' => '', 'sortorder' => '14924', 'image' => '20220428021318_economic crisis.jpg', 'article_date' => '2022-04-28 14:12:27', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '15176', 'article_category_id' => '274', 'title' => 'FNCCI Urges Government to Avail Loan for Productive Sector at 2 Percent Interest Rate ', 'sub_title' => '', 'summary' => 'April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 27: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of the private sector, has suggested the government to make arrangements to provide loans to manufacturing industries at 2 percent interest rate. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">As the budget announcement for the upcoming fiscal year (FY 2022/23) is approaching, the federation has suggested the government to adopt export-oriented policy and to end undeclared power curs faced by the industrial sector.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation put forward those suggestions during a pre-budget discussion organized on Tuesday. On the occasion, FNCCI vice president Dinesh Shrestha said that concrete reforms were needed in the revenue system. He said that 80 percent of the taxpayers at present have paid only 20 percent of the total tax. According to Shrestha, the government should create a favorable environment for paying taxes and this would prevent tax evasion. "There has never been a study on how much taxes should be raised," he said, "It is necessary now." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">On the occasion, FNCCI Tax and Revenue Committee Chairman Sandeep Kumar Agrawal presented the paper on behalf of the FNCCI. He stressed on the need to come up with short, mid and long term plans to increase capital and for import substitution. He claimed that the prices of commodities have gone up worldwide and the rate of imports will continue to go up. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">"We have estimated that the remittance inflow will be Rs 1 trillion this year," he said, "Apart from this, 30 to 40 percent of the remittances are still coming through informal channels, and an attractive policy is needed to bring it through the formal channels." </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The federation has suggested revising the Nepal Integrated Trade Strategy (NTIS) for export promotion. Stating that the current arrangement of export refinancing is impractical, the federation asked to maintain the term of such loan for at least 3 years. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The private sector has demanded cash incentives for shoe and sole manufacturers. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Stating that the exporters have to go to the central bank and other banks to get the cash subsidy for export, Agrawal demanded the money to be transferred to their account as soon as the export is done. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the federation, there are many problems such as environmental impact assessment for the establishment of industries. While declaring industrial villages, the FNCCI has suggested the government to take into consideration the situation after decades. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Furthermore, the federation has also demanded to bring a policy of giving tariff exemption to those who consume more energy. The suggestion has also laid emphasis on providing cheap electricity to the export-oriented industries. In addition, it has been mentioned that skilled manpower has to be imported from outside while the manpower produced by the Council for Technical Education and Vocational Training (CTEVT) have not been linked with the entrepreneurs. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-27', 'modified' => '2022-04-27', 'keywords' => '', 'description' => '', 'sortorder' => '14918', 'image' => '20220427023224_budget new.jpg', 'article_date' => '2022-04-27 14:31:45', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '15172', 'article_category_id' => '274', 'title' => 'IMF Projects Nepal’s Economy to Grow by 4.1 Percent in 2022', 'sub_title' => '', 'summary' => 'April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 26: The International Monetary Fund (IMF) has projected Nepal’s economy to grow by 4.1 percent in 2022.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The IMF published its report ‘World Economic Outlook’ which states that Nepal’s economy will grow by 4.1 percent in 2022 after suffering a slowdown to 2.1 percent in 2021 due to the Covid-19 pandemic.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that Nepal’s economy is projected to grow by 6.1 percent in 2023.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the war in Ukraine, a resurgent pandemic, and tightening global financial conditions, according to IMF.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation,” states the report. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">According to IMF, fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Interest rates are expected to rise as central banks tighten policy, exerting pressure on emerging market and developing economies. Moreover, many countries have limited fiscal policy space to cushion the impact of the war on their economies, IMF further said.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">“War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies—1.8 and 2.8 percentage points higher than projected last January.”</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential, the report added.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">With a few exceptions, employment and output will typically remain below pre-pandemic trends through 2026. Scarring effects are expected to be much larger in emerging market and developing economies than in advanced economies—reflecting more limited policy support and generally slower vaccination—with output expected to remain below the pre-pandemic trend throughout the forecast horizon.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-26', 'modified' => '2022-04-26', 'keywords' => '', 'description' => '', 'sortorder' => '14914', 'image' => '20220426051733_imf.jpg', 'article_date' => '2022-04-26 17:16:47', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 6 => array( 'Article' => array( 'id' => '15162', 'article_category_id' => '274', 'title' => 'MoF holds Budget Discussion with Education and Health Ministries', 'sub_title' => '', 'summary' => 'April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 25: The Ministry of Finance held separate discussions with the Ministry of Education, Science and Technology and the Ministry of Health and Population on Sunday regarding the budget for the upcoming fiscal year. The Ministry of Finance discussed the programmes proposed within budget ceiling with both the ministries.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Finance Minister Janardan Sharma suggested the concerned ministry to include such programmes in the budget that would prevent the tendency of school drop-out rate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">“Most of the students enrolled in grade 1 tend to drop out of school before even reaching grade 5. The number of students in higher classes is even lower,” said Minister Sharma, adding, “Let’s prepare the budget and introduce programs to determine the cause why students drop out of the school and create the environment for the students to not drop out.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He also remarked that there is a need to move towards digital technology to change the way of learning with time. He instructed the concerned authorities to start a programmes to make use of digital technology for teaching in some schools from the upcoming fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Stating that the establishment of IT colleges is necessary, Sharma said that a budget should be allocated for that as well. Sharma said, “There are many programmes that failed to show effective results despite continuous budget allocation. Therefore, we should prepare the budget by focusing on programmes that have good return.”</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the meeting, Minister for Education Devendra Poudel emphasized the need of programmess to ensure quality education, stating that there will be chaos everywhere if the education lags behind. He said that the development of the country will also be supported by better education.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Vice Chairman of the National Planning Commission, Biswo Nath Poudel, said that the compulsion for students to go to school by travelling a long distance should be removed. He said that the tendency to study with government’s money and going to work abroad after the completion of studies should also be discouraged. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the meeting with the Ministry of Health and Population on Sunday, Finance Minister Janardan Sharma said that it is necessary to formulate the budget in such a way as that it would end the compulsion for poor people to live with diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He requested to propose budget and programmes to expand the services of Patan Institute of Health Sciences and Tribhuvan University Teaching Hospital, Maharajgunj to other places as well.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">He said the upcoming budget will address the issue of health insurance reaching out to the poor families, improving maternity services, creating a situation where people do not have to go abroad for treatment of complex diseases including kidney and liver diseases.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">During the discussion, Health Minister Birodh Khatiwada said that arrangements should be made for the posts of doctors and equipment in 500 to 1,500-bed hospitals.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-25', 'modified' => '2022-04-25', 'keywords' => '', 'description' => '', 'sortorder' => '14904', 'image' => '20220425020619_finance_ministry_copy1.jpg', 'article_date' => '2022-04-25 14:05:24', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 7 => array( 'Article' => array( 'id' => '15137', 'article_category_id' => '274', 'title' => 'CNI Study Concludes Nepal’s Economy is not in Crisis', 'sub_title' => '', 'summary' => 'April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">April 20: The Confederation of Nepalese Industries (CNI) has stated that the country’s economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">A study conducted by CNI has concluded that the economy is not in crisis. CNI has also released a study report claiming that the economy is not in crisis. Various economists have also commented that the economy is not in crisis.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">There have been comments that the lack of liquidity in the country's banking system, rising trade deficit and balance of payments deficit, declining foreign exchange reserves, rising inflation, and lack of energy and fuel have all contributed to the crisis. Some have even analyzed that Nepal is facing an economic crisis like Sri Lanka. However, according to the CNI report, Nepal's economy is much better than that of Sri Lanka.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI claims that data suggest there is no economic crisis. However, the report states that there is a need to move forward with restraint.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At present, the size of Nepal's public debt is 40.5 per cent of the gross domestic product (GDP). Sri Lanka's national debt is 111 per cent of GDP.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, Nepal has 6.7 months of foreign exchange reserves to support imports of goods and services. Sri Lanka does not have enough foreign exchange reserves to sustain one month of goods and services. Sri Lanka is unable to import even basic commodities.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Inflation in Nepal is 7 per cent while it has grown to 25 per cent in Sri Lanka. In this case, Nepal's economy should not be compared with Sri Lanka, the report said. On top of that, CNI claimed that the overall economy is not in crisis. The report states that the economy does not appear to be in crisis in the last three months of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">In the first five months of the current fiscal year, the monthly average import was Rs 167 billion. In the following three months it stood at Rs 156 billion in January, February and March. This suggests that imports have declined recently.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, foreign exchange reserves were negative by 3.24 per cent in the first five months of the current fiscal year. In the following three months, foreign exchange reserves declined by only 1.53 per cent.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The capital budget of Rs 28.40 billion was spent in the first five months of the current fiscal year. After that, a capital budget of Rs. 48.70 billion has been spent in the last three months.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">The study also showed that the inflow of remittances has increased in the last three months. In the first five months of the current fiscal year, the monthly remittance was Rs 77.70 billion. In the next three months, remittances have reached an average of Rs 80.80 billion per month.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">Similarly, arrival of tourists has also increased in the last three months. The average monthly tourist arrivals in the first five months of the current fiscal year were 17,757. In the next three months, an average of 26,249 foreign tourists arrived monthly.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">According to CNI Chairman Bishnu Agrawal, there is no economic crisis in Nepal based on these statistics. However, he acknowledged that the numbers were not enough and we need to be cautious.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI made the report public at a press conference on Tuesday.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">It has been said that there is an economic crisis in Nepal. But, looking at the statistics, it doesn't look like that. Foreign countries have reserves enough to sustain imports for three months of imports in foreign countries. Even though we have enough reserves to support imports for more than six months, there are comments that there is an economic crisis, which is not true," Agrawal opined. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">At the same time, the steps taken by the government to resolve the crisis have created more problems, he added.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-size:12.0pt"><span style="font-family:"Times New Roman","serif"">CNI concluded that stopping imports is not the answer. It has been said that a special initiative should be taken to increase production, marketing and consumption of domestic goods by managing the import at present. Stating that Nepal is in an economic crisis could create panic and destabilize the market, shared CNI Vice President Anuj Agrawal.</span></span></span></span></p> <p><br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> </p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-20', 'modified' => '2022-04-21', 'keywords' => '', 'description' => '', 'sortorder' => '14879', 'image' => '20220420051123_ecomonic crisis.jpg', 'article_date' => '2022-04-20 17:10:38', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 8 => array( 'Article' => array( 'id' => '15126', 'article_category_id' => '274', 'title' => 'Finance Ministry Issues Directive to Reduce Budget for Fuel by 20 Percent ', 'sub_title' => '', 'summary' => 'April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><span style="font-family:"Arial Unicode MS","sans-serif"">April 19: The Ministry of Finance (MoF) has issued a directive to different ministries, government bodies and public agencies to reduce fuel consumption by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Issuing a notice on Monday, the Ministry of Finance directed the concerned government agencies to reduce the budget allocated under the heading of fuel for the current fiscal year by 20 percent. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The MoF clarified that the measure taken to reduce fuel consumption would however not be applicable for development projects, to maintain law and order, and for most essential services as well as the upcoming local level election. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">Stating that the growing trade deficit, decline in inflow of remittance and foreign currency reserves have mounted pressure on national economy, the ministry said that the government on April 13 decided to cut budget allocated under the heading of fuel consumption. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">According to the ministry, the government decided to reduce the budget allocated under the heading of administration and fuel consumption by 10 percent each to promote the consumption of clean energy. </span><br /> <span style="font-family:"Arial Unicode MS","sans-serif"">The measure to cut-off fuel would remain effective up to July 15, informed Finance Ministry Spokesperson Dhundi Prasad Niraula. The Office of the Prime Minister and Council of Ministers and the Ministry of Federal Affairs and General Administration would monitor whether the decision has been implemented or not. -- RSS</span></span></span></p> ', 'published' => true, 'created' => '2022-04-19', 'modified' => '2022-04-19', 'keywords' => '', 'description' => '', 'sortorder' => '14868', 'image' => '20220419080850_Finmin.jpg', 'article_date' => '2022-04-19 08:08:19', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 9 => array( 'Article' => array( 'id' => '15116', 'article_category_id' => '274', 'title' => 'Government Agrees to Accept Financial Assistance of Rs 98 Billion', 'sub_title' => '', 'summary' => 'April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors.', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 17: The government has decided to accept financial assistance of about Rs 98 billion (including loans and grants) from two separate donors. The government has decided to accept USD 659 million (about Rs 80 billion) from the United States Agency for International Development (USAID) and a concessional loan of USD 150 million (about Rs 18 billion) from the World Bank Group's International Development Association.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The Ministry of Finance informed that the government has already started its homework to receive the US grant. The grant will be received by Nepal within 5 years to be spent in various sectors. According to a Finance Ministry official, the government and USAID are preparing to sign the agreement after the cabinet decided to accept the grant.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the International Financial Assistance Coordination Division of the Ministry of Finance, the grant will be spent mainly on education, health, sustainable energy, agriculture and capacity building of the private sector. The projects are yet to be finalized even though the area for spending the grant that Nepal is about to receive has already been decided.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Ishwori Aryal, joint secretary at the Ministry of Finance, said that the grant agreement will be signed between the two sides after the government and the USAID decide on the projects. According to Aryal, work is underway to select relevant projects.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The grant amount will be received within five years at the rate of 132 million dollars (about Rs 16 billion) per year. If the agreement is signed this year, the grant will start coming from the next fiscal year and the full grant will come by 2027.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">USAID spent 683 million dollars in Nepal from 2016 to 2021. </span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Although some analysts say that the current economic crisis will be alleviated if the government accepts such large loans and grants, finance ministry officials contradict the viewpoint.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the Ministry of Finance, this loan is agreed upon to support the programs in the budget. Its interest rate will be less than 1 percent per annum.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">The loan, which is planned to be spent on sectors including institutional capacity improvement and implementation of federalism, will be credited to the country’s finance as soon as the agreement is signed. The government will make expenditures from the credited amount accordingly.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">According to the officials of the ministry of finance, as only the decision to accept grants and loans is made, this amount will not come to the market immediately. They added that although its effects will be long lasting, it will not help to resolve the immediate crisis.</span></span></p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2022-04-17', 'modified' => '2022-04-17', 'keywords' => '', 'description' => '', 'sortorder' => '14858', 'image' => '20220417031556_finance_ministry_copy1.jpg', 'article_date' => '2022-04-17 15:15:16', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 10 => array( 'Article' => array( 'id' => '15110', 'article_category_id' => '274', 'title' => '2078 Marred by Liquidity Crisis ', 'sub_title' => '', 'summary' => 'April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">April 15: The year 2078 was a year marred by liquidity crisis (investable capital) for the financial sector. As economic activities picked up pace immediately after the Covid-19 pandemic subsided, banks and financial institutions aggressively pushed for credit expansion. However, as deposit collection did not grow as compared to the credit flow of banks, there was a liquidity crisis in the banking system. As a result, at the end of the year, the new credit flow of banks and financial institutions has almost stopped. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Deposits in banks increased by Rs 4.43 billion from Rs 4.45 trillion in 2077 to Rs 4.91 trillion in 2078. According to Nepal Rastra Bank, credit flow increased by Rs 678.77 billion from Rs 4.022 trillion to Rs 4.78 trillion. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The main reason for the liquidity crisis in banks and financial institutions was the change in policy of NRB. The NRB removed the provision of maintaining 85 percent capital, loan and deposit (CCD) ratio in the banks through the monetary policy of the current Fiscal Year (FY 2078/79) and implemented the provision of maintaining 90 percent credit-deposit (CD) ratio. Due to this reason, the ability of banks to expand credit flow decreased. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, as most of the credit was provided for imports, the country's foreign exchange earnings, remittances, tourism and other sectors were affected, and the deposits could not increase. Due to this, the financial sector is facing liquidity crisis in the market. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Dispute between finance minister and governor</strong> </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The year 2078 will also be remembered for the suspension of Governor Maha Prasad Adhikari. With the tension between Finance Minister Janardan Sharma and Governor Maha Prasad Adhikari boiling during the announcement of monetary policy for the current FY, the ministry has started an investigation against the governor for not cooperating with the government. The governor has been suspended since the investigation began. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The government has been criticized for taking political action against the governor who was seeking economic reform. Due to the dispute between the finance minister and the governor, the leadership of NRB is now in the hands of the acting Governor. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><strong>Cash margin for LC</strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Although the credit flow of banks and financial institutions increased, it shifted to the unproductive sector, which in turn posed a challenge to the financial sector. Due to this pressure, NRB tightened its grip on equity loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">The central bank has discouraged investment in real estate and transportation sectors by increasing the risk burden of these loans. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Similarly, the central bank, which has implemented provision of 100 percent cash margin for opening LCs to reduce the import of goods under 47 different types of harmonic codes, has verbally instructed the banks not to open LCs until the situation improves. </span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14852', 'image' => '20220415125258_Liquidity.jpg', 'article_date' => '2022-04-15 12:52:18', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 11 => array( 'Article' => array( 'id' => '15107', 'article_category_id' => '274', 'title' => 'Banks' Interest on Loans hits Double Digit', 'sub_title' => '', 'summary' => 'April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">April 15: The interest rate of banks and financial institutions on loans has reached double digit, according to a report published by Nepal Rastra Bank (NRB).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The report states that the interest on loans increased due to the increase in interest on deposits as well as the increasing operational cost of the banks. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest rate on loans of banks in the month of Falgun (mid-February to mid-March) was 10.5 percent, the report states adding that the interest on loans reached double digit in the month of Magh (mid-January to mid-February).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The average interest on loans was 8.48 percent during the first month of the current fiscal year. The banks were involved in an unhealthy competition of increasing the interest on deposits to attract customers following the liquidity crunch in the banking system. As a result, the interest on loans also increased.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The interest on deposits have almost doubled in the current fiscal year. According to the central bank, the average interest on deposits was 4.76 percent in the first month of the current fiscal year (mid-July to mid-August) which increased to 8.73 percent in the eighth month ie Falgun (mid-February to mid-March).</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks were involved in an unhealthy competition of increasing interest on deposits to attract customers since mid-October to mid-November. The central bank had to intervene due to such competition among the banks. Issuing a circular on October 19, the central bank instructed the banks not to change interest rate more than 10 percent at a time.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NRB’s Deputy Spokesperson Narayan Prasad Pokharel says that the interest rate remained under control due to the central bank’s intervention.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">“Had the central bank not issued such directive, the interest on loans would have reached 18 percent by now,” said Pokharel, adding, “The interest rates on deposits as well as loans remained under control due to the NRB’s intervention.”</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Commercial banks are trying to keep the interest rate stable following a gentleman’s agreement among members of Nepal Bankers’ Association, an umbrella body of the CEOs of commercial banks.</span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The banks had decided to increase the interest on loans by 10 percent in mid-February. But the bankers agreed to maintain the same rate for at least two months. </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The maximum interest on deposits at present is 11.3 percent on fixed deposits. Banks can increase the interest on fixed deposits by an additional one percentage point in case the deposit is collected through remittance.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-15', 'modified' => '2022-04-15', 'keywords' => '', 'description' => '', 'sortorder' => '14849', 'image' => '20220415114234_interest-rates-e1541025967190.jpg', 'article_date' => '2022-04-15 11:41:33', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 12 => array( 'Article' => array( 'id' => '15102', 'article_category_id' => '274', 'title' => 'Chamber of Industry Morang Warns of Imminent Economic Crisis', 'sub_title' => '', 'summary' => 'April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. ', 'content' => '<p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">April 14: The Chamber of Industry Morang has expressed concern that the country's economy can head towards crisis if the regulatory bodies fail to coordinate with each other. The chamber also warned that the overall economic indicators were pointing towards an imminent crisis.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Suyash Pyakurel, chairman of the chamber, said that the liquidity crisis in the financial sector since a long time, rising interest rates, the Ukraine crisis, rising prices in international markets and the internal situation in the country are all leading the overall economy towards a crisis. Stating that there is no effective coordination among the regulatory bodies when it comes to management of liquidity, foreign exchange reserves and facilitation of import and export, he emphasized on the need to be aware of the ongoing situation.</span></span></p> <p><span style="font-size:18px"><span style="font-family:"Times New Roman","serif"">Issuing a statement, the Chamber of Industry Morang demanded the government to find a possible solution to the crisis by removing the misunderstanding between the intergovernmental bodies. The chamber also stated that it is ready to provide assistance from the private sector to bring the crisis-oriented economy back on track.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-14', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14844', 'image' => '20220414025529_Chamber of industries morang new.jpg', 'article_date' => '2022-04-14 14:54:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 13 => array( 'Article' => array( 'id' => '15099', 'article_category_id' => '274', 'title' => '‘Economy has not Spiraled out of Control’', 'sub_title' => '', 'summary' => 'April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claims.', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">April 13: A day after the Ministry of Finance claimed that the country’s economy was not deteriorating as much as it had been hyped, Nepal Rastra Bank on Tuesday published data to back the claim. The reports of both the ministry and the central bank show that the economy is under stress but the situation has not gone out of control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to NRB, although inflation has increased of late other indicators are under control.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">The latest data of the central bank shows that </span></span>the country’s gross foreign exchange reserves decreased 16.3 percent to Rs 1171 billion in mid-March 2022 from Rs 1399.03 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the Current Macroeconomic and Financial Situation Report of NRB</span></span>, of the total foreign exchange reserves, reserves held by NRB decreased 18.2 percent to Rs 1018.05 billion in mid-March 2022 from Rs 1244.63 billion in mid-July 2021. Likewise, reserves held by banks and financial institutions (except NRB) decreased 0.9 percent to Rs 152.95 billion in mid-March 2022 from Rs 154.39 billion in mid-July 2021. </span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif"">Based on the imports of eight months of 2021/22, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 7.4 months, and merchandise and services imports of 6.7 months, the report further states.</span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Former NRB Governor Dr Chiranjivi Nepal believes that the situation has not gone out of control. Speaking at an interaction in the capital on Tuesday, Dr Nepal said that the situation will normalize soon.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">On the other hand, the consumer price inflation stood at 7.14 percent in the eighth month of the current fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to economist Chandra Mani Bhandari, price hike is the result of both internal and external factors. He says that the impact of Russia-Ukraine war has increased prices of petroleum products across the world resulting in inflation which has also affected Nepal.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the NRB report, Nepal’s current account remained at a deficit of Rs 462.93 billion in the first eight months of the current fiscal year. Such a deficit was Rs 151.42 billion in the corresponding period of the previous fiscal year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">During the review period, capital transfer decreased 41.2 percent to Rs 7 billion and net foreign direct investment (FDI) increased 60.0 percent to Rs 16.30 billion, the report said. In the same period of the previous year, capital transfer and net FDI amounted to Rs 11.91 billion and Rs 10.18 billion respectively.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">Likewise, the Balance of Payments (BOP) remained at a deficit of Rs 258.64 billion in the review period against a surplus of Rs 68.01 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 2.17 billion in the review period against a surplus of 565.8 million in the same period of the previous year.</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:13.5pt"><span style="font-family:"Calibri","sans-serif"">According to the central bank’s report, total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-13', 'keywords' => '', 'description' => '', 'sortorder' => '14841', 'image' => '20220413044135_NRBnew.jpg', 'article_date' => '2022-04-13 16:40:49', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 14 => array( 'Article' => array( 'id' => '15098', 'article_category_id' => '274', 'title' => 'Import and Export Up Despite Measures Taken by NRB', 'sub_title' => '', 'summary' => 'April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). ', 'content' => '<p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">April 13: Nepal’s exports and imports have both increased during the eight months of the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB). The central bank’s data show overall imports have increased despite taking measures to tighten imports of luxurious goods. Trade deficit has also increased despite increase in exports. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The Current Macroeconomic and Financial Situation Report published by the central bank on Tuesday states that merchandise exports increased 82.9 percent to Rs 147.75 billion during the review period. The country’s exports had increased 7.8 percent during the corresponding period of last fiscal year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, exports to India and other countries increased 104.2 percent and 29.1 respectively whereas exports to China decreased 11.0 percent. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">The report further states that exports of palm oil, soybean oil, oil cakes, polyester yarn and thread, woolen carpets among others, increased whereas exports of cardamom, tea, herbs, wire, copper wire rod, among others, decreased in the review period.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports increased 38.6 percent to Rs 1308.73 billion compared to an increase of 2.1 percent a year ago. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Destination-wise, imports from India, China and other countries increased 28.1 percent, 36.7 percent, and 75.4 percent respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Imports of petroleum products, medicine, crude palm oil, crude soybean oil, gold, among others, increased whereas imports of MS billet, cement, chemical fertilizer, pulses, molasses sugar, among others, decreased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Based on customs points, exports from Kanchanpur, Mechi, and Nepalgunj Customs Office decreased whereas exports from all the other major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the import side, imports from all the major customs points increased in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">Total trade deficit increased 34.5 percent to Rs 1160.99 billion during the eight months of 2021/22. Such a deficit had increased 1.6 percent in the corresponding period of the previous year. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">During the eight months of 2021/22, merchandise imports from India by paying convertible foreign currency amounted Rs 147.03 billion. Such amount was Rs 121.36 billion in the same period of the previous year.</span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 47.3 percent and 52.7 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.02 percent in the review period. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 32.3 percent, 0.5 percent and 67.2 percent of total exports respectively. </span></span></p> <p><span style="font-size:18px"><span style="font-family:Calibri,"sans-serif"">On the imports side, the share of intermediate goods remained 53.5 percent, capital goods 10.7 percent and final consumption goods remained 35.8 percent in the review period. Such ratios were 53.5 percent, 11.8 percent and 34.7 percent respectively in the same period of the previous year.</span></span></p> ', 'published' => true, 'created' => '2022-04-13', 'modified' => '2022-04-14', 'keywords' => '', 'description' => '', 'sortorder' => '14840', 'image' => '20220413041951_Trade.jpg', 'article_date' => '2022-04-13 16:18:57', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ) ) $current_user = null $logged_in = false $xml = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
| Currency | Unit |
Buy | Sell |
| U.S. Dollar | 1 | 121.23 | 121.83 |
| European Euro | 1 | 131.65 | 132.31 |
| UK Pound Sterling | 1 | 142.47 | 143.18 |
| Swiss Franc | 1 | 124.29 | 124.90 |
| Australian Dollar | 1 | 71.69 | 72.05 |
| Canadian Dollar | 1 | 83.90 | 84.32 |
| Japanese Yen | 10 | 10.94 | 11.00 |
| Chinese Yuan | 1 | 17.17 | 17.26 |
| Saudi Arabian Riyal | 1 | 32.27 | 32.43 |
| UAE Dirham | 1 | 33.01 | 33.17 |
| Malaysian Ringgit | 1 | 27.36 | 27.50 |
| South Korean Won | 100 | 9.77 | 9.82 |
Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)
| Fine Gold | 1 tola | 77000.00 |
| Tejabi Gold | 1 tola | 76700.00 |
| Silver | 1 tola | 720.00 |
Update : 2020-03-25
Source: Federation of Nepal Gold and Silver Dealers' Association
| Petrol | 1 Liter | 106.00 |
| Diesel | 1 Liter | 95.00 |
| Kerosene | 1 Liter | 95.00 |
| LP Gas | 1 Cylinder | 1375.00 |
Update : 2020-03-25
